Slide 1: FY26 Results and Strategy Update
FY26 RESULTS AND STRATEGY UPDATE 25 June 2026
Slide 2: Agenda
AGENDA 1. Reflecting on the year 2. ‘Fit for the Future’ progress update 3. FY26 performance 4. Looking ahead 5. Q&A Halfords Group PLC FY26 Results | June 2026 2
Slide 3: Reflecting on the year
REFLECTING ON THE YEAR
Slide 4: Strong progress against our plan
STRONG PROGRESS AGAINST OUR PLAN The ‘Optimise’ phase of our plan has improved performance in FY26 and will continue to do so in FY27 Optimise ✓ Strong LfL sales growth of 4.8% ✓ Gross margin of 52.8%, its highest in a decade ✓ Costs well-managed ✓ Underlying PBT of £45.4m (equivalent excluding chan
Slide 5: FY26: A year to reset and refocus
FY26: A YEAR TO RESET AND REFOCUS 1. 2. 3. 4. 5. New leadership Updated strategy Focus on execution Strong financial Reframed purpose performance New CIO and MD Fit for the Future strategy Excellent early progress on Revenue growth and margin Emphasising the role of the appointments in Retail and le
Slide 6: Fit for the Future progress update
FIT FOR THE FUTURE PROGRESS UPDATE
Slide 7: A plan to drive sustainable value creation
A PLAN TO DRIVE SUSTAINABLE VALUE CREATION Fit for the Future addresses some home truths relation to historical performance Home truths Strategy Outcomes LfL sales growth Service profitability Optimise Operating margin expansion ~0 to 24 months Building near-term value Progression in underlying PBT
Slide 8: Delivering 'Optimise'
DELIVERING ‘OPTIMISE’ Retail Garages Group Key priorities: Key priorities: Key priorities: 1. Category management to drive 1. Complete Fusion to transform 1. Brand awareness driving increased improved sales density returns from existing garage sites transaction volumes and cross-shop 2. Services gro
Slide 9: FY26 Optimise: Retail
FY26 OPTIMISE: RETAIL Halfords Group PLC FY26 Results | June 2026 9
Slide 10: Category management
CATEGORY MANAGEMENT A customer-led approach designed to accelerate growth and profitability in Retail ▪ Each category treated as an end-to-end business from Example category: Workshop range design to sale ▪ Relatively low share of a £1bn market including ▪ Four categories relaunched to date: worksho
Slide 11: The flagship cycling concept
THE FLAGSHIP CYCLING CONCEPT A clear opportunity to leverage market leadership through a more inspirational in-store experience ▪ Flagship cycling pilot ▪ FY27: focus on e-bike ▪ Local ranges ▪ Growing market where our share is lower ▪ New ranges including high quality integrated ▪ Layout by ‘tribe’
Slide 12: FY26 Optimise: Garages
FY26 OPTIMISE: GARAGES Halfords Group PLC FY26 Results | June 2026 12
Slide 13: Fusion and learnings for our other garages
FUSION AND LEARNINGS FOR OUR OTHER GARAGES Fusion has been a meaningful contributor to improving garage profitability ▪ 103 Fusion garages trading and delivering on plan ▪ £200k capex per site ▪ c.2-year payback ▪ Doubling site-level contribution ▪ c.35 sites identified for conversion in FY27 ▪ Oppo
Slide 14: Operational excellence in action
OPERATIONAL EXCELLENCE IN ACTION 50bps YoY expansion in garage operating margin Optimisation of garage labour has driven improved utilisation in FY26 ▪ Operational excellence driving improved utilisation ▪ Rise in employment cost effective April 2025 caused labour % of sales to increase YoY in Q1 ▪
Slide 15: FY26 Optimise: Group
FY26 OPTIMISE: GROUP Halfords Group PLC FY26 Results | June 2026 15
Slide 16: Strengthening our digital infrastructure
STRENGTHENING OUR DIGITAL INFRASTRUCTURE We have made foundational improvements to our digital platform Progress in FY26 Harnessing AI ▪ Improved customer experience ▪ AI search a small but growing % of traffic ▪ Fewer clicks ▪ Target customers (‘do-it-for-me’) are high AI users ▪ Up to 50% site spe
Slide 17: Investing in our brand
INVESTING IN OUR BRAND Significant opportunity to grow awareness and consideration of our motoring services proposition ▪ Emphasis on performance marketing has resulted in a brand that is widely recognised but less well understood ▪ This creates a clear opportunity to drive growth via investment in
Slide 18: FY26 Performance
FY26 PERFORMANCE
Slide 19: Basis of preparation
BASIS OF PREPARATION Unless otherwise stated, all numbers in this presentation are: • Based on 52-week performance to ensure comparability with the prior period • Stated on an IFRS 16 basis with the exception of net cash / debt, which excludes lease liabilities • Excluding non-underlying items In th
Slide 20: A strong performance in FY26
A STRONG PERFORMANCE IN FY26 LfL sales Gross margin Underlying PBT1 +4.8% 52.8% £45.4m (FY25: +2.5%) (+210bps YoY) (+4.1% YoY) ROCE2 Free cashflow Dividend per share 14.2% £25.3m 9.0p (+160bps YoY) (FY25: £43.0m) (FY25: 8.8p) Note: all numbers on this slide are stated on a 52 -week basis. 1 Excludin
Slide 21: Underlying PBT above market expectations
UNDERLYING PBT ABOVE MARKET EXPECTATIONS FY26 consensus restated for change in accounting policy is £44.2m with a range from £43.4m to £45.3m. Group FY26 FY25 Change (all numbers stated on a 52-week basis) (£m) (£m) YoY ▪ Like-for-like sales growth ahead of 52- week sales growth due to closure of Re
Slide 22: Strong profit growth despite high inflation
STRONG PROFIT GROWTH DESPITE HIGH INFLATION Group Underlying PBT YoY 6.1 6.9 43.6 15.8 45.4 (11.0) (1.3) 5.8 19.6 (40.1) Net inflation FX Cost savings Investments FY26 FY25 (restated) Trading Better Garage Accounting Buying initiatives policy change Note: all numbers on this slide are stated on a 52
Slide 23: Gross margin reached a 10-year peak
GROSS MARGIN REACHED A 10-YEAR PEAK 460bps of gross margin expansion over 2 years Group Gross Margin % 0.3% 52.8% ▪ Further Better Buying gains 0.9% 0.3% 0.6% ▪ Data-driven pricing and promotion optimisation 50.7% ▪ FX tailwind Average $1.29 (FY25: $1.24) Price & mix Better Buying FY26 FY25 FX Offse
Slide 24: Retail: accelerating sales and margin growth
RETAIL: ACCELERATING SALES AND MARGIN GROWTH Retail Operating Profit (£m) 3.1 Retail FY26 FY25 Change YoY 7.1 39.0 37.5 3.4% Revenue 1,039.3 1,004.9 (6.2) 4.1% LfL 5.8 1.8% - Motoring 660.4 648.6 8.7 2.9% LfL 6.3% - Cycling 378.9 356.3 6.4% LfL (20.0) Gross margin % 50.9% 49.3% 160bps Operating cost
Slide 25: Garages: profit +22% despite labour inflation
GARAGES: PROFIT +22% DESPITE LABOUR INFLATION Autocentres ex- Change FY26 FY25 Avayler YoY Autocentres ex-Avayler Operating Profit (£m) 2.2% Revenue 723.1 707.6 5.8% LfL 3.8 1.0 22.3 Gross margin (%) 55.6% 53.1% 250bps 5.1 (4.2) 18.3 8.6 Operating costs (379.4) (357.1) 6.2% Underlying operating 22.3
Slide 26: Prioritising balance sheet strength
PRIORITISING BALANCE SHEET STRENGTH Group Net Cash (£m) ▪ FY26 free cash inflow of £33.3m (52 weeks: 7.0 £25.3m) includes payment of FY25 184.7 (6.6) colleague bonus ▪ Cash capex within our £55m to £65m (58.1) annual cash investment envelope ▪ Inventory grew £5.6m to £230.8m as we built stock for th
Slide 27: Dividend increased to 9.0 pence
DIVIDEND INCREASED TO 9.0 PENCE Dividend per share 1. Maintain a prudent balance sheet with a leverage ratio not exceeding 0.8x. 5.8 6.0 2. Invest for growth with a focus on strong Pence per share returns. 3. Pay a dividend 1.5x to 2.5x covered by underlying profit after tax. 3.0 3.0 4. M&A in prior
Slide 28: Fit for the Future: evidencing our progress
FIT FOR THE FUTURE: EVIDENCING OUR PROGRESS Optimise Evolve Scale Outcomes Guardrails LfL sales growth +4.8% Cash investment £55m - £65m £58.1m Operating margin expansion Flat - Leverage < 0.8x underlying EBITDA (0.1x) Progression in underlying PBT +4.1% Dividend 1.5x to 2.5x covered by 1.7x underly
Slide 29: Looking ahead
LOOKING AHEAD
Slide 30: Our plan for FY27
OUR PLAN FOR FY27 Continue to drive enhanced returns through Optimise and start to plan for Evolve Fit for the Future outcomes LfL sales Operating margin Progression in ROCE > cost of growth expansion underlying PBT capital In FY27 that means… Retail Garages Group Category management rollout Complet
Slide 31: FY27 outlook
FY27 OUTLOOK ▪ Continued momentum in April, May and June trading with strategic progress supported by market recovery ▪ Consumer behaviour so far unaffected by events in the Middle East, albeit second order impacts could arise in H2 ▪ FY27 underlying PBT expected around the top end of the consensus
Slide 32: A resilient business fit for the future
A RESILIENT BUSINESS FIT FOR THE FUTURE ▪ Differentiated, service-led business model ▪ Focused and energised management team ▪ Clear strategy delivering tangible progress with further opportunities to optimise in FY27 ▪ Performance momentum supported by macro factors: ▪ Market recovery ▪ FX tailwind
Slide 33: Investor relations and website
investor.relations@halfords.co.uk halfordscompany.com Halfords Group PLC FY26 Results | June 2026 33
Slide 34: Halfords Group PLC FY26 Results | June 2026
Halfords Group PLC FY26 Results | June 2026 34
Slide 35: Appendix
APPENDIX Halfords Group PLC FY26 Results | June 2026 35
Slide 36: Our compelling investment case
OUR COMPELLING INVESTMENT CASE Our plan leverages our unique combination of assets across motoring and cycling, creating value in both the short and long term. Trusted, Attractive Unrivalled Structural and Service, advice Data and heritage brand markets scale financial and expertise technology resil
Slide 37: Opportunities from major market trends
OPPORTUNITIES FROM MAJOR MARKET TRENDS 1. 2. 3. 4. 5. Electrification and Ageing car parc and Convenience and Needs-based, Digital transition to EV the shift to value ‘do-it-for-me’ resilient markets enablement Most cars on the road still With the average UK car now Customers increasingly want Halfo
Slide 38: Reconciliation of 52 to 53 week performance
RECONCILIATION OF 52 TO 53 WEEK PERFORMANCE 52 weeks to 53 weeks to Group Week 53 27 March 2026 3 April 2026 Revenue 1,764.5 37.2 1,801.7 Cost of sales (832.2) (16.6) (848.8) Gross profit 932.3 20.6 952.9 Operating expenses (876.3) (15.8) (892.1) Other income 0.4 - 0.4 Underlying operating profit 56
Slide 39: Impact of change in accounting policy
IMPACT OF CHANGE IN ACCOUNTING POLICY FY26 Pre change Adj Post change Underlying operating expenses (880.2) 3.9 (876.3) In FY26 we updated our policy Underlying operating profit 52.5 3.9 56.4 relating to non-underlying items Underlying operating profit margin 3.0% 3.2% to include the amortisation of
Slide 40: Halfords year record
HALFORDS 5 YEAR RECORD All numbers shown below are underlying and on a total operations basis. 52 weeks to Group FY22 FY23 FY24 FY25 27 March 2026 Revenue 1,382.4 1,591.8 1,712.8 1715.2 1,764.5 Cost of sales (660.7) (816.6) (887.5) (846.1) (832.2) Gross profit 721.7 775.2 825.3 869.1 932.3 Operating