Pepkor Holdings Ltd. · JSE:PPH

Pepkor — Merger or Acquisition (September 2024)

15 slides from Pepkor's merger presentation, Sep 3, 2024

  1. Slide 1: Acquisition of Shoprite's Furniture Business

    ACQUISITION OF SHOPRITE’S FURNITURE BUSINESS 3 September 2024

  2. Slide 2: Agenda

    Agenda 01 02 03 Strategy & Transaction Q&A Value creation rationale CEO: Pieter Erasmus CEO Pepkor Lifestyle: Peter Griffiths 2

  3. Slide 3: Strategy & Value creation

    01 PIETER ERASMUS – CEO Strategy & Value creation 3

  4. Slide 4: Pepkor today: Dominance in Southern Africa

    Pepkor today Dominance in Southern Africa BUILDING CHINA INTERNATIONAL AFRICA SCALE BRAZIL SOUTH AFRICA 1901 1916 1943 1965 1978 1986 1989 1991 1993 1994 1995 2000 2010 2012 2015 2016

  5. Slide 5: Pepkor investment case

    Pepkor investment 02 Closest to customers with unparalleled scale and capabilities case 1.9bn transactions 01 Defensive, cash generative Significant 03 group with a track record of healthy returns 6 000 retail stores growth opportunities informal market FinTech enabled by retail core Discount and va

  6. Slide 6: Pepkor continues to evolve

    Pepkor continues to evolve Value creation process drives capital allocation Value creation plan process Growth Ability to scale Allocate capital 01 02 03 prospects capabilities or divest Divestments Investments Traditional retail Nigeria Implemented R1.2bn inflow FinTech 6

  7. Slide 7: Transaction summary

    Transaction summary Excludes Angola Mozambique • Credit book Adjusted • Insurance cell NAV valuation • Inventory • Fixed assets Due diligence completed c.4% 100% of Shoprite Furniture business and assets in of Pepkor market cap - cash purchase consideration Botswana Lesotho Zambia H2FY25 anticipated

  8. Slide 8: Transaction overview

    Transforming homes, enriching lives. 02 PETER GRIFFITHS – CEO PEPKOR LIFESTYLE Transaction overview

  9. Slide 9: Pepkor Lifestyle

    Pepkor Lifestyle Part of a powerhouse group Rebranding completed Common philosophy Serving customer households’ needs

  10. Slide 10: Overview: Pepkor Lifestyle and Shoprite Furniture

    OVERVIEW OVERVIEW Pepkor Lifestyle Shoprite Furniture c.R11bn revenue (FY23) c.R7bn revenue (FY24) 6 retail brands 2 retail brands 928 retail stores 407 retail stores 16 distribution centres 3 distribution centres 5 countries 6 countries South Africa Lesotho Eswatini South Africa Lesotho Eswatini Bo

  11. Slide 11: Overview: Combined entity

    OVERVIEW Combined entity c.R18bn revenue Store footprint 8 retail brands 1 335 retail stores Zambia 10 19 distribution centres 6 countries Namibia Botswana South Africa Lesotho Eswatini 38 34 Botswana Namibia Zambia Eswatini 19 Lesotho 10 South Africa 1 224 11

  12. Slide 12: Improved customer value proposition

    Pepkor Lifestyle Improved customer value proposition Combined entity High-end, Mass-middle Value Discount Supply Chain Services 12

  13. Slide 13: Transaction rationale & Value creation

    Transaction rationale & Value creation Opportunity to leverage scale & capability to enhance profitability • Complementary product mix Value proposition • Leverage private label capability • Strengthen mid-to-higher market offering Geographic diversification • Grow under-represented regions in SA an

  14. Slide 14: Q&A

    04 Q&A 14

  15. Slide 15: Thank you

    THANK YOU

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