Lewis Group Limited · JSE:LEW
Lewis — FY2025 Earnings Presentation
29 slides from Lewis's earnings presentation, May 2025
Slide 1: Annual Financial Results for the Year Ended 31 March 2025
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2025
Slide 2: Agenda: Debtor Analysis
DEBTOR ANALYSIS
Slide 3: Review of 2025
Pg 3 REVIEW OF 2025 ▪ Highlights ▪ Operational Context ▪ Operational Achievements ▪ Returns to Shareholders Lewis Group Annual Financial Results March 2025 2
Slide 4: Highlights
Pg 4 HIGHLIGHTS Revenue Merchandise Sales Gross Profit Margin Satisfactory Paid Operating Profit at Accounts at record + 13.5% + 9.2% 43.4% 83.5% + 66.9% Operating Profit EPS HEPS Total Dividend Return on Equity at Margin at + 80.7% to +60.3% to + 60.0% to 15.4% 22.7% 1 457 cents per Share 1 483 cen
Slide 5: Operational Context - Review of the Trading Period
Pg 5 OPERATIONAL CONTEXT- REVIEW OF THE TRADING PERIOD Challenging Operating Environment Lewis Group Annual Financial Results March 2025
Slide 6: Operational Achievements
Pg 6 OPERATIONAL ACHIEVEMENTS Lewis Group Annual Financial Results March 2025
Slide 7: Operational Achievements
Pg 7 OPERATIONAL ACHIEVEMENTS Operating costs- performance and growth driven, contained below revenue growth at 13.0% Acquisition of new bed business well integrated into new Speciality segment Strong balance sheet Continued share repurchase programme in H1 47.8% of shares in issue repurchased since
Slide 8: Operational Achievements: Store Numbers
Pg 8 OPERATIONAL ACHIEVEMENTS March Net March 2024 movement 2025 498 13 511 Store opening target of 20 for 2025 was exceeded Traditional 170 14 184 150 4 154 33 Net Stores opened Acquired 39 (1) 38 Speciality 12 3 15 Stores revamped 0 16* 16 TOTAL 869 49 918 *Acquired Lewis Group Annual Financial Re
Slide 9: Operational Achievements: Client Engagement via Social Media
Pg 9 OPERATIONAL ACHIEVEMENTS The Group now enjoys Client Engagement via Social Media over 3.7 million Facebook followers Lewis Group Annual Financial Results March 2025
Slide 10: Operational Achievements
Pg 10 OPERATIONAL ACHIEVEMENTS Lewis Group Annual Financial Results March 2025
Slide 11: Returns to Shareholders: Dividends Per Share & Yield
Pg 11 RETURNS TO SHAREHOLDERS Dividends Per Share & Dividend Yield (%) 800 500 500 413 413 300 328 218 218 195 Dividend payout 133 195 195 200 300 ratio consistently maintained at 55% and above Dividends per share (cents) Interim Final Average dividend yield of 10.5% over past 5 financial years. Lew
Slide 12: Returns to Shareholders: NAV vs Average Share Buy Back Price
Pg12 RETURNS TO SHAREHOLDERS Net Asset Value vs Average Price of Share Buy Backs 95.38 85.43 78.57 71.47 64.58 59.58 59.26 61.03 49.96 47.00 67,5% 40.34 40.83 30.72 30.24 30.45 49,7% 52,4% 49,2% 52,2% 48,6% 21.00 43,6% 36,4% Share Buy Back- Average Share Price ( R) Average Net Asset Value Per Share
Slide 13: Returns to Shareholders: Return on Equity
Pg 13 RETURNS TO SHAREHOLDERS Return on Equity 15.4% 10.1% 9.3% 9.0% 8.7% FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Medium term target exceeded through: Enhanced profitability Strategically executed share buy back programme Lewis Group Annual Financial Results March 2025
Slide 14: Debtor Analysis
DEBTOR ANALYSIS ▪ Debtor Performance ▪ Gross Debtor Analysis Lewis Group Annual Financial Results March 2025
Slide 15: Debtor Performance
DEBTOR PERFORMANCE Pg 15 FY 2025 FY 2024 Debtors book (Rm) (+14.5%) 7 955 6 949 Collections from instalment sales (Rm) (+17.4%) 6 201 5 282 Collection rate 78.9% 79.7% Contractual arrears (Rm) 1 863 1 706 % of debtors at gross carrying value 23.4% 24.5% Debtor costs (Rm) (-2.6%) 1 193 1 225 • Net ba
Slide 16: Gross Debtor Analysis
Pg 16 GROSS DEBTOR ANALYSIS Gross Instalments in arrears Number of Impairment Impairment Total carrying Customer grouping customers value provision provision arrears ≤3 months >3 months Total R’000 % R’000 R’000 R’000 R’000 FY2025 588 856 6 194 306 1 544 932 24.9 817 563 538 476 279 087 % 83.5 77.9
Slide 17: Gross Debtor Performance
Pg 17 17 GROSS DEBTOR PERFORMANCE Satisfactory Paid Accounts (%) 83.5% 81.3% 80.4% 79.0% 74.4% FY2021 FY2022 FY2023 FY2024 FY2025 Satisfactory paid customers at a record high level Lewis Group Annual Financial Results March 2025
Slide 18: Financial Results
FINANCIAL RESULTS ▪ Income Statement ▪ Segmental Analysis ▪ Balance Sheet Overview ▪ Capital Management ▪ Key Ratios Lewis Group Annual Financial Results March 2025
Slide 19: Income Statement
Pg 19 INCOME STATEMENT FY2025 FY2024 % Revenue (Rm) 9 288 8 184 13.5 Merchandise sales (Rm) 5 081 4 653 9.2 Gross profit margin (%) 43.4 43.1 Operating costs (Rm) (3 203) (2 834) 13.0 Debtor costs (Rm) (1 193) (1 225) (2.6) Insurance service expenses (Rm) (848) (723) 17.3 Impairments and capital ite
Slide 20: Segmental Analysis
Pg 20 During the year, the Group revised its reporting segments due to acquiring a new business which prompted a strategic reorganisation. SEGMENTAL ANALYSIS Group Traditional Speciality FY2025 FY2024 FY2025 FY2024* FY2025 FY2024* Revenue (Rm) 9 288 8 184 8 704 7 707 584 477 Merchandise sales (Rm) 5
Slide 21: Balance Sheet Overview
Pg 21 BALANCE SHEET OVERVIEW FY2025 FY2024 Rm Rm Property, plant, equipment and intangible assets 594 553 Right-of-use assets 848 794 Inventory 766 724 Trade and other receivables 5 162 4 483 Cash on hand 175 224 Other assets 895 755 Total assets 8 440 7 533 Shareholders’ equity and reserves 5 078 4
Slide 22: Capital Management (Rm)
Pg 22 CAPITAL MANAGEMENT (Rm) FY 2025 FY 2024 1987.2 Borrowings 17.3% 11.7% Ratio Interest 9.4 7.5 Cover Ratio times times (999.1) (55.8) (43.9) (310.2) (296.7) (35.7) (574.5) (328.7) Dividends Lease Purchase of Other cash flow Net increase Cash flow Investments in Investments in Share buy paid paym
Slide 23: Capital Management (Rm) April 2021 to March 2025
Pg 23 CAPITAL MANAGEMENT (Rm) 1 April 2021 to 31 March 2025 5,728 ( 2,450) ( 843) ( 1,030) ( 1,201) ( 1,531) ( 1,327) Cash flow Investments in Dividends Lease Other cash flow Net increase in from receivables paid payments movements borrowings trading Lewis Group Annual Financial Results March 2025
Slide 24: Key Ratios
Pg 24 KEY RATIOS FY 2025 FY 2024 % 1 457 EPS (cents) 806 80.7 1 483 HEPS (cents) 925 60.3 15.4 ROE – after tax (%) 9.3 13.4 ROCE – after tax (%) 8.6 15.0 ROA – before tax (%) 10.0 Borrowings Ratio 17.3 (gearing excluding lease liabilities) (%) 11.7 Gearing Ratio 36.6 – including lease liabilities (%
Slide 25: Targets and Outlook
25 TARGETS AND OUTLOOK ▪ Financial and Operating Targets ▪ Outlook Lewis Group Annual Financial Results March 2025
Slide 26: Financial and Operating Targets
Pg 26 FINANCIAL AND OPERATING TARGETS FY 2025 Targets (%) % % Actual Targets Year-end 2026 Medium-term Gross profit margin 43.4 40-42 40-42 41-43 Increase in operating costs (incl insurance service expenses) 13.9 6-10 7-11 6-10 Satisfactory paid customers 83.5 77-80 78-82 78-82 Debtor costs as a % o
Slide 27: Outlook
Pg 27 OUTLOOK Lewis Group Annual Financial Results March 2025
Slide 28: Outlook
OUTLOOK Pg 28 Lewis Group Annual Financial Results March 2025
Slide 29: Questions Thank You
Pg 29 QUESTIONS THANK YOU Lewis Group Annual Financial Results March 2025 2