Slide 1: FY25 Preliminary Results
FY25 PRELIMINARY RESULTS 17 December 2025
Slide 2: FY25 Highlights
FY25 HIGHLIGHTS Stephan Borchert CEO
Slide 3: FY25 Highlights
FY25 HIGHLIGHTS Strategic highlights Financial highlights Capital returns Revenue FY25 dividend1 Sale of Poundland €4,523m 9.6 cents / share +8.7% Gross margin Pepco Plus reformatting €50m share buy back drives Iberia profitability 48.0% complete +100bps Underlying EBITDA LFL growth restored in (IFR
Slide 4: Delivering on Our Strategic Objectives
DELIVERING ON OUR STRATEGIC OBJECTIVES SIMPLIFY AND TOPLINE GROWTH WIN IN REFOCUS AND UPGRADE STREAMLINE THROUGH WESTERN DIGITISE PEPCO’S CORE THE GROUP MEASURED EUROPE CUSTOMER OPERATING PORTFOLIO EXPANSION IN CEE PROPOSITION PLATFORM 4 4
Slide 5: Simplifying & Streamlining the Group
SIMPLIFYING & STREAMLINING THE GROUP • Poundland sold to Gordon Brothers in June • LFL growth in FY25 of +1.9% 2025 • During the year, we took key steps to position • Gordon Brothers, Pepco Group and Poundland put forward a Dealz as an independent, self-sufficient business, including; restructuring
Slide 6: Central Eastern Europe Overview
CENTRAL EASTERN EUROPE OVERVIEW 39 63 FY25 Poland1 key metrics 100 LFL growth 4.8% revenue 1,397 stores 0.4%2 growth 1397 Avg store 2 30% of Group 58 net new EBITDA margin3 revenue stores 321 21.7% 155 FY25 Rest of CEE key metrics 269 1 42 500 LFL growth of 8.5% revenue 138 2,035 stores 1 4.1%2 grow
Slide 7: Growth in Poland Restored
GROWTH IN POLAND RESTORED • LFL growth in Pepco Poland restored in Q3 FY25, with positive LFL maintained in both thereafter • Improved LFL trajectory supported by long-term process changes • This growth has been achieved alongside margin improvements driven by FMCG snake exit, data & digital impleme
Slide 8: Delivering the Turnaround in Pepco Poland
DELIVERING THE TURNAROUND IN PEPCO POLAND • Overhauled restocking process from standardised preset FY25 LFL in bottom 20% of stores (excl FMCG) Product sizes to demand-based restocking availability and • Investing in availability rather than breadth restocking • Streamlined product offering followin
Slide 9: Pepco Expansion in Poland and CEE
PEPCO EXPANSION IN POLAND AND CEE FY25 Openings – Year 11 CMD FY25-FY27 targets CEE store number and market maturity3 Total new stores 215 ~75% ~90% 100% ~500-600 ~3,750- ~5,030 Net ~4,250 ~800 Average net sales €804K 3,850 new stores 3,232 ~1,000 ~500- 600 Average store EBITDA2 €157k FY24 FY27 100%
Slide 10: Western Europe Overview
WESTERN EUROPE OVERVIEW FY25 Iberia & Italy key metrics1 467 stores in LFL growth of 15.2% revenue Iberia and Italy 14.5%2 growth 64 Average store 13.2% of 18 net new EBITDA margin Group revenue stores 22 1 11.0%3 237 208 52 Stores Distribution centre Strategic highlights FMCG-exit and Pepco Plus St
Slide 11: Driving Growth & Profit
DRIVING GROWTH & PROFIT • Strong LFL performance through the year in Western Europe LFL% (incl FMCG) Western Europe 10.0% • Significant benefit on LFL excl. FMCG due to floor space reallocation post successful Pepco 3.5% Plus conversions in Iberia • Converted stores showing reduction in H1 H2 revenu
Slide 12: Performance Uplift in Converted Stores
PERFORMANCE UPLIFT IN CONVERTED STORES IBERIA LFL % including vs excluding FMCG by format • Strong LFL growth in clothing and general merchandise across our regular stores, with small negative impact from FMCG exit 25.1% • Removal of FMCG has a more significant impact to LFL 13.7% 14.3% growth acros
Slide 13: Case Study: Average Converted Store
CASE STUDY: AVERAGE CONVERTED STORE Average store Pre-FCMG exit Post-FMCG exit1 Store area 672 SQM 599 SQM FTEs 8.9 6.9 Net sales €1.6m €1.2m Gross margin 37.7% 50.7% Store EBITDA2 €36.7k €179.7k Operational Gross margin Lower sales due improvements +12.9ppts to FMCG exit and mix drive Store EBITDA
Slide 14: Driving Strong Improvements in Store EBITDA
DRIVING STRONG IMPROVEMENTS IN STORE EBITDA Store EBITDA margin development1 Average store EBITDA (Absolute - €k) Average store EBITDA margin1 FY24 (pre-conversion) FY25 (post-conversion)2 2.3% 14.4% 3 FY24 FY25 FY23 FY24 FY25 FY26 Iberia Italy Group (1) Prepared on IAS 17 basis. FY25 data is annual
Slide 15: 29 New Stores Opened in Iberia and Italy in FY25
29 NEW STORES OPENED IN IBERIA AND ITALY IN FY25 New stores performing well with further upside upon maturity FY25 openings – year 11 Iberia & Italy Total new stores 29 Average net sales €1.2m Average store EBITDA2 €198k Average store EBITDA %2 15.9% Payback months 33 Note: (1) data is annualised (2
Slide 16: Strong Reception for New Openings in Spain
STRONG RECEPTION FOR NEW OPENINGS IN SPAIN
Slide 17: Planned New Pepco Stores in Spain & Italy
PLANNED NEW PEPCO STORES IN SPAIN & ITALY ~75 new stores now expected in Iberia and Italy in FY26 Key characteristics Identified whitespace locations % future openings A-stores 110 • High traffic locations • Large catchment areas 25% • Premium rents 150 B-stores 170 • Medium shopping centres and ret
Slide 18: Driving Digitally Influenced Store Sales
DRIVING DIGITALLY INFLUENCED STORE SALES • Set to launch in Q1 2026; first in Poland, before rolling out into other geographies Pepco • Interactive content, gamification and unique features to drive engagement mobile app • Access to our digital loyalty programme and rewards scheme Pepco • Dedicated
Slide 19: Operating Platform
OPERATING PLATFORM DC management Reduced transport outsourced to DHL costs as a result of expected to deliver expanded DC efficiency savings network Implementing Technology & data standardised investment with new operating model data lake, CRM, PLM across Pepco tool etc Note: DC is distribution cent
Slide 20: ESG
ESG Good progress in FY25, further supported by new Sustainable Financing in the coming years People Value chain Customers & Community • Women now represent 50% of our top • Scope 1 & 2 emissions down 39% • 25% better cotton in own-brand leadership • 98% of our packaging is designed for products • 5
Slide 21: FY25 Financial Overview
FY25 FINANCIAL OVERVIEW Willem Eelman CFO
Slide 22: Pepco Group - Strong & Consistent Growth
PEPCO GROUP - STRONG & CONSISTENT GROWTH REVENUE (€BN) GROSS MARGIN % +15.9% CAGR +670bps 48.0 47.0 4.2 4.5 3.6 41.3 41.1 2.9 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 UNDERLYING EBITDA (€M) UNDERLYING NET EARNINGS (€M) +21.9% CAGR +19.9% CAGR 865 784 550 478 219 183 480 531 127 128 290 319 FY22 FY23
Slide 23: FY25 Group Financial Highlights
FY25 GROUP FINANCIAL HIGHLIGHTS Revenue LFL (incl FMCG) Gross margin Underlying EBITDA (IFRS16) €4,523m 2.6% 48.0% €865m +8.7% +5.6ppts +100bps +10.3% Underlying EBIT Underlying PAT Unlevered FCF Underlying EPS (IFRS 16) (IFRS 16) €371m €219m €334m 0.38c/share +1.1% +19.7% +16.4% +19.9% 23
Slide 24: Pepco Revenue Performance
PEPCO REVENUE PERFORMANCE Pepco Revenue €m +8.6% +6.4% -2.1% - 4.2% +8.6% YoY • 8.6% revenue growth generated despite negative 2.1% drag from FMCG • Impact from FMCG reduced 4184 3853 quarter on quarter to near zero in Q4 • Headwind from FMCG exit will continue into FY26 and unwind FY 2024 Volume Ne
Slide 25: Pepco Revenue Breakdown
PEPCO REVENUE BREAKDOWN Pepco Revenue by Geography FY25 33% 51% 17% Y-o-Y revenue uplift +4.8% in Poland +8.5% Rest of CEE FY24 34% 51% 15% +17.3% Western Europe Poland Rest of CEE Western Europe Pepco Revenue by Category Pepco Category LFL % FY25 53% 45% 2% 8.1% 4.8% 5.1% FY24 53% 43% 4% -0.3% Clot
Slide 26: LFL Breakdown
LFL BREAKDOWN Group LFL % Pepco LFL % Dealz LFL % 5.7% 6.1% 2.9% 2.9% 3.1% 2.3% 2.3% 2.3% 2.3% 0.9% H1 H2 H1 H2 H1 H2 Incl FMCG Excl Pepco FMCG Incl FMCG Excl FMCG Incl FMCG Pepco Poland LFL % Pepco Rest of CEE LFL % Pepco Western Europe LFL % 3.9% 2.4% 4.9% 15.9% 3.8% 12.3% -3.1% -2.9% 3.3% 3.4% 10
Slide 27: Strong Pepco LFL Improvement
STRONG PEPCO LFL IMPROVEMENT 3.6% 3.8% 2.4% 1.4% Pepco LFL (2.2%) (2.8%) (2.7%) (3.5%) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Volume Price Pepco volume vs price Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Note: data includes FMCG 27
Slide 28: Gross Margin Expansion
GROSS MARGIN EXPANSION • Strong gross margin improvement, up 100bps • Category mix improvement driven largely by replacement of low margin FMCG products with high margin clothing & GM products • Margin improvement generated while structurally reducing prices 48.0% for customers. Average unit price d
Slide 29: EBITDA Bridge
EBITDA BRIDGE €m • EBITDA primarily driven by sales and gross margin improvement 219 • Store costs increased due to higher labour costs with persistent wage inflation in many CEE markets. -111 865 -23 • Higher volume growth this year led -4 to increased store labour and 784 handling costs across the
Slide 30: Strong Net Profit Growth
STRONG NET PROFIT GROWTH €m Relating to: • Reallocation of central costs in the impairment review of store assets 11 219 • RoU, PPE & Dealz 21 199 183 38 -16 Tax rate improved from 34.2% in FY24 to 27.6% in FY25 -33 due to reduction in Relating to: • Transition to new IFRS number of loss system Excl
Slide 31: Free Cash Flow Summary
FREE CASH FLOW SUMMARY €m FY25 FY24 chg Underlying EBITDA IFRS 16 865 784 81 Exceptional items (25) (46) 21 Working capital (2) 80 (82) Share based payments (non-cash) 12 7 5 Tax paid (77) (85) 8 Operating Cash Flow 773 740 33 Capex (108) (149) 41 Rent paid (332) (304) (28) Free Cash Flow (unlevered
Slide 32: Capex
CAPEX • Lower capex in FY25 as we refocused and €m restructured our strategic direction • Store openings noticeably lower than in prior years due to more disciplined 329 approach (295 gross new openings in FY25 vs 425 in FY24) • Going into FY26, capex will increase towards the top end of our €160-18
Slide 33: Refinancing Complete
REFINANCING COMPLETE Facility Amount Coupon Maturity 3-year term loan €235m 12m Euribor + 1.55% 5 November 2028 • Refinancing successfully completed on 7 November 2025 facility (2.08% + 1.55% = 3.58%) 5-year term loan €235m 12m Euribor + 1.70% 5 November 2030 • This was a dual-track process includin
Slide 34: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK In FY25, we announced a new capital allocation policy prioritising shareholder value creation. Disciplined investment in the business is critical to our ongoing success. It will ensure we continue to provide a market-leading proposition to our customers and drive growth
Slide 35: New Pepco Group Delivered on CMD Objectives
NEW PEPCO GROUP DELIVERED ON CMD OBJECTIVES FY25 CMD guidance FY25 actuals % growth vs FY24 Revenue growth High single-digit growth €4,184m 8.6% Gross margin % Flat y-o-y 49.2% +100bps New Pepco1 EBITDA growth (IFRS 16) High single-digit growth €841m 9.1% EBIT growth (IFRS 16) High single-digit grow
Slide 36: Pepco Group Guidance
PEPCO GROUP GUIDANCE FY26 Mid-term FY25 base FY26 guidance Previous New Revenue growth €4,523m 6-8% Revenue growth ≥7% ≥7% CAGR Gross margin % 48.0% ≥48% Gross margin % 48% ≥48.5% EBITDA growth (IFRS 16) €865m ≥9% EBITDA growth (IFRS 16) ≥9% ≥9% CAGR Net Earnings (IFRS 16) €219m ≥25% Net Earnings (I
Slide 37: Summary & Outlook
SUMMARY & OUTLOOK Stephan Borchert CEO
Slide 38: Summary
SUMMARY Fast and efficient Strong financial strategic execution performance, delivering provides more dynamic in line with FY25 and agile Group guidance Enhanced shareholder Improved profitability returns with increased with net earnings dividend and ongoing growth of 20% SBB1 programme POSITIVE OUT
Slide 39: Current Trading & Outlook
CURRENT TRADING & OUTLOOK • Quarter to date (1 October to 13 December 2025): ◦ Group LFL +3.0% excluding FMCG, reflects a drag from Dealz ◦ Pepco LFL +3.9% excluding FMCG • Pepco LFL performance ◦ Strong start to October, offset by a weaker November, before returning to growth in December ◦ LFL perf
Slide 40: Q&A
pepco® Qroup Q&A
Slide 41: Appendix
pepco® Qroup Appendix
Slide 42: Pepco New Store Growth
PEPCO NEW STORE GROWTH FY25 FY24 # of stores Net new stores SQM selling space # of stores Net new stores SQM selling space Poland 1,397 58 587,122 1,339 83 559,133 Rest of CEE 2,035 142 884,414 1,893 149 821,337 Western Europe 583 34 298,560 549 99 284,935 Total 4,015 234 1,770,096 3,781 331 1,665,4
Slide 43: FY25 Pre-IFRS 16 vs IFRS 16 Profit Comparison
FY25 PRE-IFRS 16 VS IFRS 16 PROFIT COMPARISON All results below are presented on an underlying basis Pepco Group Pepco Group €m Pre-IFRS 16 IFRS 16 Revenue 4,523 4,523 Operating expenses (1,641) (1,307) Operating profit 362 371 Net finance costs (29) (68) PBT 333 303 EBITDA 531 865 Note: All results
Slide 44: FY25 Pre-IFRS 16 vs IFRS 16 Analysis
FY25 PRE-IFRS 16 VS IFRS 16 ANALYSIS €m Pepco Group Depreciation, amortisation & impairment: Non-IFRS 16 (169) Depreciation, amortisation & impairment: IFRS 16 (325) Total Depreciation (494) Net financial expense: Non-IFRS 16 (29) Net financial expense: IFRS 16 (39) Total Interest (68) Note: All res
Slide 45: FY25 P&L Summary
FY25 P&L SUMMARY €m FY25 FY24 %chg Revenue 4,523 4,160 8.7% Like-for like revenue (%) 2.6% -3.0% Gross profit 2,172 1,953 11.2% Gross profit margin (%) 48.0% 47.0% 100bps Underlying EBITDA (IFRS-16) 865 784 10.3% Underlying EBITDA margin (%) (IFRS-16) 19.1% 18.8% 30bps Depreciation, amortisation & i
Slide 46: FY25 Balance Sheet Summary
FY25 BALANCE SHEET SUMMARY €m FY25 FY24 Assets Property, plant and equipment 480 672 Right of Use Asset 986 1,291 Intangible assets 18 292 Loans receivable 3 - Trade and other receivables 63 103 Derivative financial instruments (assets) 17 35 Deferred tax asset 113 57 Inventories 892 1,175 Cash and