Pepco Group Bv · GPW:PCO
Pepco Group Bv — H1 FY26 Earnings Presentation
68 slides from Pepco Group Bv's earnings presentation, May 21, 2026
Slide 1: H1 FY26 Interim Results
H1 FY26 INTERIM RESULTS 21 May 2026
Slide 2: H1 FY26 Strategic Update
H1 FY26 STRATEGIC UPDATE Presented by: Stephan Borchert Group CEO
Slide 3: H1 FY26 Highlights
H1 FY26 HIGHLIGHTS Continued growth & improving Strong financial delivery with Pepco delivers 6 consecutive store economics in Western revenue +5% and EBITDA up quarters of LFL growth Europe. Accelerated rollout 17.5% now planned from FY27 Announced expansion into €200m share buy back Pepco mobile a
Slide 4: Strategic Pillars Actioned Across Three Growth Regions
STRATEGIC PILLARS ACTIONED ACROSS THREE GROWTH REGIONS STRATEGIC FRAMEWORK SIMPLIFY AND TOPLINE GROWTH WIN IN WESTERN REFOCUS AND UPGRADE CORE STREAMLINE THE THROUGH EUROPE DIGITISE PEPCO’S OPERATING GROUP PORTFOLIO MEASURED CUSTOMER PLATFORM EXPANSION IN CEE PROPOSITION GROWTH REGIONS NORTH CEE SOU
Slide 5: Each Region Has Its Own Distinct Growth Profile
EACH REGION HAS ITS OWN DISTINCT GROWTH PROFILE NORTH CEE SOUTH CEE WESTERN EUROPE Poland, Czechia, Hungary, Estonia, Romania, Serbia, Bulgaria, Croatia, Spain, Portugal, Italy, Lithuania, Latvia, Slovakia Bosnia, N. Macedonia, Slovenia Germany, Greece Current Footprint: ~2,360 stores Current Footpr
Slide 6: Simplify and Streamline the Group Portfolio
@ SIMPLIFY AND STREAMLINE THE GROUP PORTFOLIO group
Slide 7: Dealz Separation Nears Completion
DEALZ SEPARATION NEARS COMPLETION Revenue (€m) Dealz H1 FY26 performance • Challenging trading period with LFL growth in H1 FY26 of -8.3%, in part due to a strong comparative quarter in the prior year 182 170 • Store numbers remained broadly flat in H1 FY26 as we focused on divestment H1 FY25 H1 FY2
Slide 8: Why a Pepco-Only Group Is Stronger
WHY A PEPCO-ONLY GROUP IS STRONGER H1 FY26 Revenue contribution LFL revenue growth Pepco Dealz 6.9% • Pepco Group will be in a much stronger position 4.4% 4.6% operating with Pepco as our sole brand 1.9% -2.9% • Since FY24, Pepco has delivered consistently 93.1% -4.8% -8.3% improving financials • Me
Slide 9: Topline Growth Through Measured Expansion in CEE
AA) fo TOPLINE GROWTH THROUGH MEASURED EXANSION IN CEE pepco®
Slide 10: North CEE Delivered 2.4% LFL Growth
NORTH CEE DELIVERED 2.4% LFL GROWTH Poland, Czechia, Hungary, Estonia, Lithuania, Latvia, Slovakia TOP 3 PERFORMING COUNTRIES1 Poland Hungary Estonia LFL Growth / Revenue (€) Revenue split by country H1 store openings LFL%2 -2.4% -4.4% -2.3% 2.9% 2.4% 19 -39 1156 1181 1241 1053 1105 39 19 Poland Cze
Slide 11: Store Relocation Programme in Poland
STORE RELOCATION PROGRAMME IN POLAND • 19 store relocations completed in Poland in H1 FY26 (24 completed across Pepco) • Relocated stores in Poland delivering ~9% sales uplift1 • Focused on undersized stores with limited footfall and poorly matched co-located stores EXAMPLE - BYDGOSZCZ BORTNOWSKIEGO
Slide 12: Upgraded Marketing Campaigns
UPGRADED MARKETING CAMPAIGNS • During H1 FY26, we began running marketing campaigns featuring influential celebrities. • Małgorzata Socha, a popular Polish actress, fashion icon and model was the focus of our first campaign. She ranks 41st on the list of the 100 most valuable female personal brands
Slide 13: South CEE Delivered 4.3% LFL Growth
SOUTH CEE DELIVERED 4.3% LFL GROWTH Romania, Serbia, Bulgaria, Croatia, Bosnia, N. Macedonia, Slovenia TOP 3 PERFORMING COUNTRIES1 Serbia Bulgaria Bosnia & Herzegovina LFL Growth / Revenue (€) Revenue split by country H1 store openings LFL% 2 -2.5% 2.1% 8.1% 8.6% 4.3% 4 -5 668 41 40 620 584 534 517
Slide 14: Pepco's Ukraine Opportunity
PEPCO’S UKRAINE OPPORTUNITY Why Ukraine is a compelling market for Pepco? • Brand Strength: ~4m+ Ukrainian people in Poland where we have almost 99%+ brand recognition • Compelling customer profile: 40m+ population with similar Gdansk Ukraine demographics to Poland. Value-oriented consumer base Pozn
Slide 15: Win in Western Europe
2; x group WIN IN'WESTERN EUROPE
Slide 16: Western Europe Delivered 13.5% LFL Growth
WESTERN EUROPE DELIVERED 13.5% LFL GROWTH Spain, Portugal, Italy, Germany, Greece TOP 3 PERFORMING COUNTRIES1 Spain Portugal Germany LFL Growth / Revenue (€) Revenue split by country H1 store openings LFL%2 -11.2% -2.9% 12.3% 15.9% 13.5% 1 Reflects 28 closures in Germany -31 392 33 370 296 297 325 3
Slide 17: Strong Turnaround of LFLs in Converted Stores
STRONG TURNAROUND OF LFLs IN CONVERTED STORES LFL revenue growth % (incl FMCG)1 • Our ‘Pepco Plus’ stores were a drag on reported LFLs in FY25 LFL of Wave 1 following the removal of FMCG from these store which converted stores created a large disparity between regular and converted store performance
Slide 18: Store EBITDA % Uplift in Converted Stores
STORE EBITDA % UPLIFT IN CONVERTED STORES IBERIA store EBITDA margin %1, 2,3 • At FY25 our annualised store EBITDA margin was 14.4%. Actual Regular stores Converted stores performance in H1 FY26 has far exceeded this at 19.7%, already in line with our regular stores +12.7 ppts • As a result of strat
Slide 19: Driving a Step Change in Store EBITDA
DRIVING A STEP CHANGE IN STORE EBITDA Store EBITDA margin development in Converted stores Average store EBITDA (Absolute - €k) Average store EBITDA margin FY24 FY25 H1 FY26 (pre-conversion) (post-conversion) 2.8% 7.4% 19.7% FY24 FY25 H1 FY26 FY24 FY25 H1 FY26 LTM Iberia Italy Group Note: Data prepar
Slide 20: New Stores in Iberia and Italy
NEW STORES IN IBERIA AND ITALY New stores performing well with further upside upon maturity Iberia and Italy1 FY25 openings H1 FY26 openings2 Total new stores 29 22 Average net sales €1.2m €1.3m Average store EBITDA2 €198k €240k Average store EBITDA %2 15.9% 18.5% Payback months 33 27 Note: (1) data
Slide 21: Proof of Concept Assessment Initiated
PROOF OF CONCEPT ASSESSMENT INITIATED • Successfully right-sized our store portfolio in Germany, closing 28 of our 64 stores in H1 FY26 Store Count Development - Germany • Remaining 36 stores are generating strong double-digit LFL growth (excluding FMCG) and are highly profitable • Store EBITDA marg
Slide 22: Doubling Western Europe Store Count by FY30
DOUBLING WESTERN EUROPE STORE COUNT BY FY30 FY25 H1 FY26 >1,000 store Progress to date whitespace 34 net new stores, On track for 75 net opportunity1 taking total stores to new stores in Western 583 Europe by year end Key milestone reached Iberian & Italian store economics now proven Ready for accel
Slide 23: Refocus and Digitise Pepco's Customer Proposition
—* oom ee aiai an = ww REFOCUS AND DIGITISE PEPCO’S CUSTOMER PROPOSITION pepco®
Slide 24: Success Elements of the Pepco Concept
SUCCESS ELEMENTS OF THE PEPCO CONCEPT Close proximity store footprint Market-leading prices • Highly accessible locations, even in low • Aim to be >10% cheaper prices on our KVIs density catchment areas, creates unparalled • Hold #1 price position in clothing and GM in convenience our core markets •
Slide 25: Pepco Delivers Market Leading Prices
PEPCO DELIVERS MARKET LEADING PRICES Analysis of ~2500 products, comparing items with similar quality and characteristics at relevant competitors, shows Pepco is a clear price leader across all its markets Pepco’s KVI price index across all Pepco markets 121 118 118 117 117 116 116 115 114 113 113 1
Slide 26: Pepco Quality Clothing
PEPCO QUALITY CLOTHING • Pepco has c.10% higher quality clothing products than our two closest Polish peers in both kids and baby wear • The quality gap in adultwear is narrower but an area of focus we are actively working to grow Pepco quality vs local Polish peers – GSM comparison Baby Kids Adult
Slide 27: Pepco Loyalty App Sees Strong Engagement
PEPCO LOYALTY APP SEES STRONG ENGAGEMENT Delivering increased engagement opportunities with our customers all year round, driving sales, visits and retention 1.1m app downloads since 530k Pepco Club customers Pepco Club customers are launch since launch spending ~2x more Note: Pepco loyalty app is c
Slide 28: Utilising AI in Our Marketing
UTILISING AI IN OUR MARKETING • We are utilising AI to assist in our marketing efforts • We can use AI to create significantly more product photography at a faster pace and a lower cost • This is key with the launch of our new consumer website and mobile app which house a significantly wider catalog
Slide 29: Upgrade Our Core Operating Platform
group: UPGRADE OUR CORE OPERATING PLATFORM
Slide 30: H1 FY26 Highlights
H1 FY26 HIGHLIGHTS DC in Spain DHL now managing continues to deliver all DCs with distribution cost Bucharest live in savings in Iberia of April -240bps, as well as benefitting LFLs Tech upgrades through our supply Data lake & CRM live chain are allowing us enabling enhanced to track stock and insig
Slide 31: Upgraded Operating Platform Ensures Resilience
UPGRADED OPERATING PLATFORM ENSURES RESILIENCE Pepco’s enhanced operating model proved resilient in the face of ongoing geopolitical tensions Pepco stock freshness • PGS, now fully integrated with Pepco, delivers end to end sourcing through 80% 80% operations in mainland China, Hong Kong, Bangladesh
Slide 32: H1 FY26 Financial Review
H1 FY26 FINANCIAL REVIEW Presented by: Willem Eelman Pepco Group CFO
Slide 33: H1 FY26 Group Financial Highlights
H1 FY26 GROUP FINANCIAL HIGHLIGHTS LFL incl FMCG: Underlying EBITDA Revenue +0.5% Gross margin (IFRS16) €2,470m 49.7% €516m +5.0% LFL excl FMCG: +250bps +17.5% +3.6% Underlying EBIT Underlying PAT Unlevered FCF Underlying EPS (IFRS 16) (IFRS 16) €323m €198m €181m 35.4c/share +53.1% +52.3% +255% +56.
Slide 34: LFL Breakdown
LFL BREAKDOWN Group LFL % Pepco LFL % Dealz LFL % 2.9% Incl FMCG 3.6% 4.6% 2.6% (8.3%) 2.3% 2.6% 2.3% 0.5% 1.2% Incl FMCG Excl FMCG Incl FMCG Excl FMCG H1 FY25 H1 FY26 H1 FY25 H1 FY26 H1 FY25 H1 FY26 Pepco North CEE LFL % Pepco South CEE LFL % Pepco Western Europe LFL % 2.4% 0.8% 8.1% 8.1% 13.5% 12.
Slide 35: H1 FY26 Pepco Update
H1 FY26 PEPCO UPDATE Presented by: Hugo van Santen Pepco CFO
Slide 36: Pepco Revenue Performance
PEPCO REVENUE PERFORMANCE Pepco Revenue +6.0% €m 1.0% +4.5% (3.3%) +3.7% YoY • 6.0% revenue growth generated despite negative 3.3% drag from FMCG-exit 2301 • Growth primarily driven by 62 net 2171 new Pepco store openings • Headwind from FMCG exit continues into FY26 and unwind from 3.6% in Q1 FY26
Slide 37: Pepco Revenue Breakdown
PEPCO REVENUE BREAKDOWN Pepco Revenue by Geography H1 FY26 54% 29% 17% Y-o-Y revenue uplift +3.5% in North CEE +7.6% South CEE H1 FY25 54% 29% 17% +5.9% Western Europe North CEE South CEE Western Europe Note: Poland represents 32.0% of Pepco revenue vs 32.5% in H1 FY25 Pepco Revenue by Category H1 F
Slide 38: Strong Pepco LFL Improvement
STRONG PEPCO LFL IMPROVEMENT 7.6% 5.2% 5.2% 4.7% 4.2% Pepco LFL 1.1% (2.1%) (2.8%) Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Volume Price Pepco volume vs price Price growth reflects increased sales of higher AUP products Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q
Slide 39: Strong Pepco 2-Year LFL Improvement
STRONG PEPCO 2-YEAR LFL IMPROVEMENT 9.7% Pepco 2-yr 5.4% 5.2% LFL 1.6% 2.3% (excl FMCG) (2.5%) Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 39
Slide 40: Group Gross Margin Expansion
GROUP GROSS MARGIN EXPANSION 2.4% 49.7% • Strong gross margin 1.6% improvement, up 250bps, driven primarily by Pepco 0.6% gross margin expansion of 47.2% (0.3%) 310 bps (1.7%) • Benefit from improvement in product margin driven by exit of low margin FMCG, shifting sales into higher margin clothing a
Slide 41: H1 FY26 Financial Review Continued
H1 FY26 FINANCIAL REVIEW CONTINUED Presented by: Willem Eelman Pepco Group CFO
Slide 42: EBITDA Bridge
EBITDA BRIDGE 117 0 516 • Group EBITDA up 17.5% to €516m (33) (7) • Group EBITDA margin grew 230bps to 20.9% 439 • Improvement in EBITDA driven by topline growth and strong margin expansion achieved in Pepco, slightly offset by inflationary pressure in our store costs H1 FY25 Gross profit Store cost
Slide 43: Operating Costs
OPERATING COSTS TOTAL: €671m €710m • Group operating costs up 5.8%, driven primarily by store operating costs which were up 6.9% 199 192 • Rise in store operating costs primarily reflects the increase in 100 100 store numbers 119 113 • As a percentage of sales, store operating costs increased by jus
Slide 44: SG&A Costs
SG&A COSTS SG&A by OPCO (€m) SG&A by OPCO % of Sales +3.4% • Increase in SG&A costs primarily -10bps reflects higher spending on transformation initiatives such as; TOTAL: €192m €199m 8.2%* 8.1%* - Data & digital capabilities - Enhancing our IT platform 4 - Driving efficiencies in 25 10 operating, f
Slide 45: Store Useful Economic Life Change
STORE USEFUL ECONOMIC LIFE CHANGE FINANCIAL IMPACT P&L (€m) H1 FY26 Group Actual Pre-UEL change Change IAS 17 rent 175 175 0 IAS 17 D&A 45 75 +30 • In H1 FY26 our UEL policy was extended from 5 to 10 years to reflect the intention to remain in stores for IFRS 16 RoU D&A 151 155 +4 longer periods IFR
Slide 46: Refinancing
REFINANCING • Refinancing successfully completed on 7 November 2025. This was Pre and Post refinancing comparison a dual-track process including €770m in committed credit facilities €m Previous (an oversubscribed syndication) and PLN 600m (c. €141m) debut RCF Previous New 5-yr term Polish bonds (und
Slide 47: Finance Costs
FINANCE COSTS Continuing operations H1 FY26 H1 FY25 change (€m) Net external interest 12 21 (9) Cost of refinancing 12 0 12 IFRS 16 interest 34 20 13 Foreign exchange losses / (gains) 1 (5) 6 Total net interest 58 36 22 Total net interest increased by €22m to €58m in H1 FY26. This was driven by: • €
Slide 48: Strong Net Profit Growth
STRONG NET PROFIT GROWTH €m 72 16 14 198 (12) (21) UEL net of tax Reversal of Refinancing costs Depreciation +€26m impairments and €12m 130 Interest €(10)m €12m benefit from Group ETR down Blue Yonder 60 bps to 25.0% New Pepco ETR down 140 bps Offset by adverse impact of Dealz up 80 bps H1 FY25 Net
Slide 49: Cash Flow Summary 6M (IFRS 16)
CASH FLOW SUMMARY 6M (IFRS 16) 6m unlevered FCF: €181m 6m levered FCF: €156m 516 (12) 2 (88) (15) (48) (175) (25) 464 (115) 464 (35) (3) (4) 49
Slide 50: Capex
CAPEX • Store openings broadly flat vs H1 FY25 as €113 we continued our disciplined approach (138 gross new openings in H1 FY26 vs 144 19 in H1 FY25) • Significant increase in IT spend half on half 28 as we accelerated our technology investment in a new ERP system, CRM etc further our digital aspira
Slide 51: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Disciplined investment in the business will ensure we continue to provide a market-leading proposition to our customers and drive profitable growth across the Group, enabling sustainable returns and enhanced value for all our stakeholders Investing in the business Strong
Slide 52: Delivering Enhanced Returns to Shareholders
DELIVERING ENHANCED RETURNS TO SHAREHOLDERS Aligning our leverage with our mid-term goals Upgrading our capital returns framework €342m €281m Retained UFCF 0.5x 44% Share buybacks 0.3x Dividends 0.2x 18% 13% 16% FY24 FY25 H1 FY26 FY25 FY26 • At CMD in March 2025, we committed to operating the busine
Slide 53: Share Count Analysis for EPS Calculations
SHARE COUNT ANALYSIS FOR EPS CALCULATIONS Six months to 31 March Six months to 31 March Twelve months to 30 2026 2025 September 2025 €000 €000 €000 Weighted ordinary shares in issue 577,452 576,000 577,452 Weighted average number of shares held in treasury1 (18,414) - (2,164) Weighted average number
Slide 54: Pepco Group Guidance
PEPCO GROUP GUIDANCE FY26 FY25 base Previous FY26 guidance Updated FY26 guidance Revenue growth €4,523m 6-8% 6-8% Gross margin % 48.0% ≥48.4% ≥49.4% EBITDA growth (IFRS 16) €865m ≥9% Low-teens % Net Earnings (IFRS 16) €219m ≥25% ≥50% Capex €96m €160-180m €160-180m p.a FCF (unlevered) €342m >€200m >€
Slide 55: Summary & Outlook
SUMMARY & OUTLOOK Stephan Borchert CEO
Slide 56: H1 FY26 Summary
H1 FY26 SUMMARY Upgraded mid- term guidance? Strong financial results Accelerated store rollout in line with significantly in Western Europe with improved profitability in store count set to line with upgraded FY26 double by FY30 guidance >1m downloads of the €200m SBB now Pepco app with club comple
Slide 57: Current Trading & Outlook
CURRENT TRADING & OUTLOOK DHL update to include here • Q3 to date (6 weeks to 16 May 2026): ◦ Pepco LFL +1.5% (excl FMCG). April trading impacted by cold weather in some core CEE markets and earlier timing of Easter. Looking at March & April combined, Pepco delivered LFL growth of +2.1% (excl FMCG)
Slide 58: Q&A
pepco® Qroup Q&A
Slide 59: Appendix
pepco® Qroup Appendix
Slide 60: Our Investment Case
OUR INVESTMENT CASE 1 2 3 4 High-margin model Significant store Sustained and growing Enhanced drives profit expansion growth opportunity free cash flow profile shareholder returns Category focus, proprietary Large whitespace opportunity in >€250m recurring uFCF driven by Minimum 25% dividend payout
Slide 61: Pepco New Store Growth
PEPCO NEW STORE GROWTH H1 FY26 H1 FY25 # of stores Net new stores SQM selling space # of stores Net new stores SQM selling space North CEE 2363 19 998,410 2296 55 964,927 of which Poland 1,403 6 592,590 1,367 28 572,545 South CEE 1,128 40 503,139 1,026 35 458,729 Western Europe 586 3 290,739 565 16
Slide 62: Pre-IFRS 16 vs IFRS 16 Profit Comparison
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 2,470 2,470 Gross profit 1,227 1,227 Operating expenses (931) (904) Operating profit 296 323 Net finance costs (24) (58) PBT 273 264 EBITDA 341 516 N
Slide 63: Pre-IFRS 16 vs IFRS 16 Analysis
PRE-IFRS 16 VS IFRS 16 ANALYSIS All results below are presented on an underlying basis €m Pepco Group Depreciation, amortisation & impairment: Non-IFRS 16 (45) Depreciation, amortisation & impairment: IFRS 16 (149) Total depreciation, amortisation & impairment (194) Net financial expense: Non-IFRS 1
Slide 64: P&L Summary
P&L SUMMARY €m H1 FY26 H1 FY25 %chg Revenue 2,470 2,353 5.0% Like-for like revenue (%) 0.5% 2.3% Gross profit 1,227 1,110 10.5% Gross profit margin (%) 49.7% 47.2% 250bps Underlying EBITDA (IFRS-16) 516 439 17.5% Underlying EBITDA margin (%) (IFRS-16) 20.9% 18.6% 230bps Depreciation, amortisation &
Slide 65: Free Cash Flow Summary
FREE CASH FLOW SUMMARY €m H1 FY26 H1 FY25 chg Underlying EBITDA IFRS 16 516 439 77 Exceptional items (15) (7) (7) Working capital (12) (146) 134 Share based payments (non-cash) 2 4 (1) Tax paid (88) (43) (45) Operating Cash Flow 404 246 158 Capex (48) (38) (10) Rent paid (175) (158) (17) Free Cash F
Slide 66: Cash Flow Summary
CASH FLOW SUMMARY €m H1 FY26 H1 FY25 %chg Underlying EBITDA pre-IFRS 16 341 273 24.9% Working capital (12) (137) (91.2)% Share based payments (non-cash) 2 4 (50.0)% Tax paid (88) (43) 104.7% Operating cash flow (pre-exceptional items) 244 96 154.2% Exceptional items (15) (7) 114.3% Capex (48) (38) 2
Slide 67: Balance Sheet Summary
BALANCE SHEET SUMMARY €m H1 FY26 H1 FY25 Assets Property, plant and equipment 468 628 Right of Use Asset 1,577 1,290 Intangible assets 21 36 Loans receivable 4 - Trade and other receivables 58 103 Derivative financial instruments (assets) 58 32 Deferred tax asset 100 87 Inventories 760 1,082 Cash an
Slide 68: Share Buyback Summary
SHARE BUYBACK SUMMARY IBEX Placing SBB tranche 1 SBB tranche 2 SBB tranche 4 (tranche 3) 17 Jul – 10 Sept 2025 28 Oct 2025 – 16 Jan 2026 27 Jan 2026 12 Mar – 22 May 2026 Period (FY25) (FY26) (FY26) (FY26) Volume 9,382,732 6,979,046 7,574,149 7,883,913 Average price (PLN) 22.64 28.60 27.75 28.55 Capi