Mr Price Group Limited · JSE:MRP

Mr Price — FY2026 Earnings Presentation

44 slides from Mr Price's earnings presentation, Jun 5, 2026

  1. Slide 1: Annual Results

    20 20 Annual Results 30 March 2025 to 28 March 2026 1

  2. Slide 2: Group Performance Overview

    Mark Blair Praneel Nundkumar Mark Blair GROUP DETAILED STRATEGIC PERFORMANCE FINANCIAL FOCUS & OVERVIEW RESULTS OUTLOOK 2

  3. Slide 3: Group Performance Overview

    01 Group Performance Overview MARK BLAIR

  4. Slide 4: FY2021 - FY2026: Five Years of Deliberate Strategic Execution

    F Y2021 - F Y2026: FIVE YEARS OF DELIBERATE STRATEGIC EXECUTION G R O U P S T R AT E G Y R E S E T - N E W S T R AT E G Y I M P L E M E N TAT I O N C O M M E N C E D L AT E 2 0 2 0 Renewed focus on Researched new Strengthened Progressed and Financial discipline SA growth: geographies: infrastructure

  5. Slide 5: Earnings Consistency While Navigating Disruption and Investing for the Future

    EARNINGS CONSISTENCY WHILE NAVIGATING DISRUPTION AND INVESTING FOR THE FUTURE H E A D L I N E E A R N I N G S P E R S H A R E G R OW T H * (%) Latest reported periods Normalised 14.8 12.4 10.7 10.3 6.7 7.1 6.5 7.7 4.6 2.1 1.0 0.2 -0.4 -3.1 -4.6 -5.6 -6.3 -8.0 -16.8 -21.3 -24.8 -23.9 -32.5 -35.0^ MRP

  6. Slide 6: Group Annual Results

    GROUP ANNUAL RESULTS Revenue EBITDA* R42.7bn +4.2% R9.3bn +5.0% Normalised: R9.6bn +7.4% Operating profit Operating margin R6.0bn +4.3% 14.2% Maintained Normalised: R6.2bn +8.0% Normalised: 14.7% +50bps Diluted HEPS# Dividend per share 1 411.8c +2.4% 916.0c +2.1% Normalised: 1 489.3c +8.0% 63% payou

  7. Slide 7: Earnings Breakdown

    EARNINGS BREAKDOWN 1 489.3 | +8.0 c % 1 440.0 | +4.4 c % E XCLUDING NK D ACQU I S ITION % RE L ATE D COSTS 1 411.8 | +2.4 c % OF R 217M Consensus* Diluted HEPS Normalised Diluted HEPS 7 *As at 29 May 2026 GROUP PERFORMANCE OVERVIEW

  8. Slide 8: Prioritising Profitable Market Share

    PRIORITISING PROFITABLE MARKET SHARE SALES GROW TH INSIGHTS GP margin: GP margin: 2-pot base GP margin: • Sector: +20bps +80bps +70bps • Muted discretionary retail sales environment 9.9 • Highly promotional competitor environment, particularly in Q4 • Group: 7.8 • Significant two-pot base in H2 of 9

  9. Slide 9: Changing Retail Environment

    CHANGING RETAIL ENVIRONMENT 9

  10. Slide 10: Operating Environment | CY2025

    OPERATING ENVIRONMENT | CY2025 A S TA B I L I S I N G L O C A L M A C R O E C O N O M I C E N V I R O N M E N T, W I T H S I G N S O F G R A D U A L B U T P O S I T I V E M O M E N T U M • Continued stability of energy supply - one year of no loadshedding • Significantly improved port operations - h

  11. Slide 11: Economic Recovery Compromised by Global Events in Q1 CY2026

    ECONOMIC RECOVERY COMPROMISED BY GLOBAL EVENTS IN Q1 CY2026 EFFECTS ON THE SOUTH AFRICAN KEY INPUT SHOCKS ECONOMY AND CONSUMER Currency Oil • 2026 forecast GDP growth downgraded from ZAR/$ USD 1.4% to 1.0% (IMF) 20 120 • Inflection in interest rate cycle to manage 19 100 rising CPI 18 80 • Consumer

  12. Slide 12: Key Messages

    KEY MESSAGES BRAND POSITIONING Sharp focus on managing impact of disruptions Product Brands classification Aspirational value/ Underlying optimism of South Africa’s medium- to long-term prospects niche Increased diversification by entering into the growing value retail segment in Europe Fashion valu

  13. Slide 13: Detailed Financial Results

    02 Detailed Financial Results PRANEEL NUNDKUMAR

  14. Slide 14: Group Income Statement

    GROUP INCOME STATEMENT NORMALISED R’M FY2026 FY2025 % CHANGE % CHANGE Operating Revenue (pg 39) 42 654 40 933 4.2% 4.2% leverage achieved through GP Gross profit (pg 21) 17 015 16 046 6.0% 6.0% margin gains and focused expense Expenses (pg 22) 12 047 11 361 6.0% 4.2% management Operating profit 6 02

  15. Slide 15: Group H2 Results

    GROUP H2 RESULTS Revenue Gross profit R24.1bn +3.3% 42.0% +80bps EBITDA* Operating profit R5.6bn +4.6% R3.9bn +3.5% Normalised: R5.8bn +8.6% Normalised: R4.1bn +9.2% Operating margin Diluted HEPS# 16.3% Maintained 913.9c +0.3% Normalised: 17.2% +90bps Normalised: 991.4c +8.8% Normalised excludes R21

  16. Slide 16: Segmental Performance | Apparel

    SEGMENTAL PERFORMANCE | APPAREL Retail sales: divisional contribution Segment sales contribution 79.6 % (LY: 79.7%) % CHANGE F Y2 02 6 Insights: • Mr Price Apparel and Mr Price Sport Retail sales 4.2% expanded GP margins by 50bps and 110bps respectively Operating profit 8.8% • Studio 88 surpassed 1

  17. Slide 17: Segmental Performance | Homeware

    SEGMENTAL PERFORMANCE | HOMEWARE Retail sales: divisional contribution Segment sales contribution 16.8 % (LY: 16.9%) % CHANGE F Y2 02 6 Insights: 4.2% • Collective market share* ~30% Retail sales 3.8% • Further GP and operating margin expansion Operating profit 5.1% 11.0% 1.6% • Yuppiechef continued

  18. Slide 18: Segmental Performance | Telecoms

    SEGMENTAL PERFORMANCE | TELECOMS Retail sales: divisional contribution Segment sales contribution 3.6 % (LY: 3.4%) % CHANGE F Y2 02 6 Insights: • Multiple consecutive periods of Retail sales 10.3% double-digit sales growth and market share gains Operating profit (0.8%) • Consistent GP margin expansi

  19. Slide 19: Space Growth

    SPACE GROW TH Total group-owned stores 3 182 A P PA R E L S E G M E N T T O TA L S T O R E S NEW STORES Store and space growth insights Mr Price Apparel 643 17 • Weighted average space growth: Mr Price Kids 40 1 ^ • New: +4.1% Miladys 271 11 • Net: +3.6% Mr Price Sport 186 9 • New stores: 196 Power

  20. Slide 20: Space Growth

    SPACE GROW TH W.avg net growth Divisions Store movements Closing stores (m2) -2 6 18 683 3.0% -5 11 271 (0.7%) -1 1 9 186 2.1% (5 trading chains) -25 80 1 006 7.3% -4 -2 32 354 7.0% -5 -1 5 8 238 1.9% -10 9 333 (2.0%) 4 25 12.0% 25 86 29.7% T O TA L S T O R E M O V E M E N T S T O TA L NET GROW TH S

  21. Slide 21: Gross Profit Analysis

    GROSS PROFIT ANALYSIS Gross profit M E D I U M -T E R M F Y2 02 6 F Y2 02 5 TA R G E T Group 41.2% 40.5% 40% - 42% Apparel 41.8% 41.2% 40% - 42% Homeware 42.8% 42.3% 41% - 43% Telecoms 20.7% 20.0% 18% - 20% GP margin performance • Group: • Three consecutive years of GP margin improvement • Gains acr

  22. Slide 22: Overhead Expenses

    OVERHEAD EXPENSES Contribution to total expenses (R’m): Selling expenses 73.3%; Admin expenses 26.7% F Y2 02 6 F Y2 02 5 % CHANGE C O N T. T O R S O I # • Employment costs: • Opened 196 new stores • Excluding LTI share scheme credits Depreciation* and amortisation 3 232 3 030 6.7% 26.8% in the base,

  23. Slide 23: Operating Margin

    OPERATING MARGIN M E D I U M -T E R M F Y2 02 6 F Y2 02 5 TA R G E T Group 14.2% 14.2% 13% - 15% Apparel 16.1% 15.4% 16% - 18% Homeware 12.2% 12.1% 13% - 15% Telecoms 8.9% 9.7% 9% - 11% Operating margin performance • Group operating margin expanded by 50bps to 14.7% on a normalised basis • Apparel s

  24. Slide 24: Credit Growth Performance

    CREDIT GROW TH PERFORMANCE Credit sales Credit environment: • Credit sales reflecting conservative consumer spending R4.4 bn 10.6 % 3.5 % • Interest rate cuts of 75bps • New accounts approved increased by 11.0% of total sales YoY growth • Account approval rate increased to 21.9% from 20.3% Debtors’

  25. Slide 25: Balance Sheet Analysis

    BAL ANCE SHEET ANALYSIS R’M MAR 2026 MAR 2025 • Strong stock management to achieve growth of 5.0% at year-end Non-current assets 17 265 16 867 • Stock freshness (0-3 months ageing) of 82.6% Current assets 23 422 15 672 • Stock provision remains adequate despite volatile environment Inventories 8 290

  26. Slide 26: Cash Flow Movements

    CASH FLOW MOVEMENTS R’m Strong cash generation Operating R8 015m Investing Financing R275m (R787m) 25 000 20 000 15 000 9 007 657 7 000 11 673 (159) (1 490) (588) 10 000 (1 111) (2 404) (113) 5 000 4 147 (3 273) 0 Apr 25 Cash from Working Net Tax PPE and Dividends Treasury Lease Interest Other* Mar

  27. Slide 27: Allocation of Capex

    ALLOCATION OF CAPEX Funded wholly from cash reserves Capital expenditure FY2026 6.0% 5.1% R1.1bn 10.0% Primarily allocated to stores (44.8%) 37.0% KEY Logistics New stores Technology Store revamps Other Store expansions 12.3% FY2027 outlook: • Capex: South Africa R1.1bn | Europe €24m • Majority allo

  28. Slide 28: Metrics and Returns

    METRICS AND RETURNS K E Y O P E R AT I N G M E D I U M -T E R M F Y2 02 6 F Y2 02 5 ACHIE VED METRICS TA R G E T Returns ROE 25.9% 27.2% 24% - 26% ROA 10.5% 12.2% 12% - 14% - Dividend payout ratio 63.0% 63.0% 63.0% Cash generation Cash conversion ratio 85.8% 94.9% >85.0% Stock turn 3.0x 3.2x >4.0x X

  29. Slide 29: Strategic Focus & Outlook

    03 Strategic Focus & Outlook MARK BLAIR

  30. Slide 30: South African Business

    SOUTH AFRICAN BUSINESS Mr Price Apparel remains the most shopped* apparel retailer in South Africa Mr Price is the 7th strongest brand across South Africa’s Top 100 Brands^ Dedicated local management team Established scalable infrastructure for future growth Strong track record of financial discipli

  31. Slide 31: Execution Excellence in a More Diverse Group

    EXECUTION EXCELLENCE IN A MORE DIVERSE GROUP We are known for consistent and disciplined execution, and managing distraction Key for 2026 and 2027: • Evolving the South African business • Focus on delivery of the European NKD business case • Do not foresee further M&A or new market entry 31 S T R AT

  32. Slide 32: Strategic Outcomes | FY2027

    STRATEGIC OUTCOMES | F Y2027 Continue to deliver what we are known for: VA LU E P O S I T I O N I N G Manage merchandise inflation - remain the Continue to deliver differentiated customers’ Value Champion fashion P R O F I TA B L E M A R K E T S H A R E G R O W T H Delivering strong new store pipeli

  33. Slide 33: Strategic Outcomes | FY2027- FY2028

    STRATEGIC OUTCOMES | F Y2027- F Y2028 C A S H G E N E R AT I O N , C A P I TA L A L L O C AT I O N A N D T R E A S U R Y M A N A G E M E N T: • Group cash flow management and capital structure optimisation • Reduce level and cost of debt in Europe – full benefit evident in FY2028 B U I L D I N G A M

  34. Slide 34: Strategic Outcomes | FY2027- FY2028

    STRATEGIC OUTCOMES | F Y2027- F Y2028 N K D S T R AT E G I C P R I O R I T I E S : Achieve performance objectives Appropriate balance of profitable store openings and exiting of underperforming stores Prove business model in test markets and investigate new test markets Assess high impact synergy op

  35. Slide 35: NKD | FY2025 AFS Considerations

    NKD | F Y2025 AFS CONSIDERATIONS AS REPORTED IN AFS* • Comp sales +1.9% | Opened net 70 stores Revenue • Market share gains in three largest markets (NKD: +2.9% vs Value market: +0.3%) €703.8m | +2.8% • Continued store closure programme GP margin • Continued focus on strategic sourcing model +170bps

  36. Slide 36: Navigating Volatility | US-Iran Conflict

    NAVIGATING VOL ATILIT Y | US-IRAN CONFLICT Supply chain: remains resilient and stable, capable of responding to global and geopolitical disruptions • Carrier surcharges: • Strong relationships with group’s carriers enabled successful management of rising input costs • Shipping rates contracted to en

  37. Slide 37: Outlook

    OUTLOOK O P E R AT I N G A N D C O N S U M E R E N V I R O N M E N T S • Immediate impact on fuel prices • Increased probability of extended higher oil price • Risks of disrupted international trade routes impacting supply chains • Consumer confidence remains subdued • Inflationary pressures limitin

  38. Slide 38: Appendix

    04 Appendix

  39. Slide 39: Revenue

    REVENUE R’M F Y2 02 6 F Y2 02 5 % CHANGE Retail sales 41 146 39 439 4.3% Other revenue1 1 253 1 276 (1.9%) Financial services & telecoms 1 138 1 099 3.5% Other 115 178 (35.5%) Total retail sales, interest & other revenue 42 399 40 715 4.1% Finance income 255 218 17.2% Total revenue 42 654 40 933 4.2

  40. Slide 40: Earnings & Dividend Per Share

    EARNINGS & DIVIDEND PER SHARE % GROW TH R’M F Y2 02 6 F Y2 02 5 % GROW TH NORMALISED Profit attributable to shareholders (R’m) 3 732 3 647 2.3% 8.0% W.avg shares in issue (000) 257 437 257 484 Basic earnings per share 1 449.5c 1 416.3c 2.3% 8.0% Addbacks (R’m) 12 20 Headline earnings (R’m) 3 744 3 6

  41. Slide 41: EBITDA Reconciliation

    EBITDA RECONCILIATION % GROW TH R’M F Y2 02 6 F Y2 02 5 % GROW TH NORMALISED Profit from operating activities 6 028 5 780 4.3% 8.0% Total depreciation & amortisation 3 312 3 177 6.3% EBITDA 9 340 8 897 5.0% 7.4% 41 APPENDIX

  42. Slide 42: Group Sales Growth Drivers

    GROUP SALES GROW TH DRIVERS GEOGRAPHY TENDER T YPE South Africa Rest of Africa Cash Credit +4.4 % +3.2 % +4.4 % +3.5 % Cash % of sales 92.2 % % of sales 7.8 % constitutes % of sales 89.4 % % of sales 10.6 % Bricks Online 89.4 % Units RSP inflation +4.4 % +4.9 % of total sales +0.5 % +3.8 % % of sale

  43. Slide 43: Rest of Africa

    REST OF AFRICA A S A % O F T O TA L G R O U P S A L E S FY2026 FY2025 7.9% 7.8 % NUMBER OF STORES Corporate owned stores 253 Kenya 10 266 Ghana 3 Franchise 13 Zambia 15 SALES GROW TH (Z AR) Mozambique 15 Namibia 84 Botswana 68 Eswatini 30 FY2026 3.2 %* Lesotho 28 43 *Corporate owned stores APPENDIX

  44. Slide 44: Thank you

    ©-mr price group limited

Mr Price Group — FY2026 Earnings Presentation on 6ix