Pepkor Holdings Ltd. · JSE:PPH
Pepkor — Investor Day (2026)
76 slides from Pepkor's investor day presentation, 2026
Slide 1: Multiplying Customer Value
. . . it’s in our DNA GARTH NAPIER Chief Commercial Officer | Pepkor Multiplying RUDI VAN RENSBURG Chief Operating Officer | PPL CUSTOMER VALUE
Slide 2: Evolving landscape and customer needs
Evolving landscape and customer needs 01 Credit 02 Connectivity 03 Insurance 04 +more 05 2
Slide 3: Convergence across sectors
CONVERGENCE ACROSS SECTORS Retailers MNOs Industries are converging as players try to establish platforms Financial services 3
Slide 4: Global retailers are evolving
GLOBAL RETAILERS ARE EVOLVING Creating customer-focused ecosystems & monetising assets Omni channel New Asset Ecosystem retail services development monetisation • E-commerce • Finance & insurance • Advertising tech • Data monetization • Marketplaces • Gaming • Business intelligence • Logistics as a
Slide 5: Wider range of finserv
WIDER RANGE OF FINSERV Financial services leveraged by retailers Offers a range of finance solutions e.g., digital wallet, 1st step credit card A Leverages various partnerships to support offering Saving Provides comprehensive embedded finance solutions B Utilises a strong partnership with HSBC to enh
Slide 6: It's in our DNA
. . . it’s in our DNA 6
Slide 7: Customers shop across formal and informal retail channels
CUSTOMER SHOP ACROSS FORMAL AND INFORMAL RETAIL CHANNELS ON REGULAR BASIS >65k % OF INCOME SPENT IN TOWNSHIP HOW OFTEN loans DO YOU SHOP AT YOUR LOCAL TOWNSHIP SPAZA? Significant Increase of portion of income 6% 11% vs. 2021 100% 21% 100% spent in township results 11% 32% 30% 24% 52% 25% Total < 10%
Slide 8: Spend close to 10% on finserv
SPEND CLOSE TO 10% ON FINSERV Other Housing, water, electricity, gas & Furnishings, household other fuels equipment & routine 11% 35% Information & Communication 4% 5% Clothing & footwear 5% Opportunity for Growth Insurance & 9% < 1% market share financial across a range of services financial services
Slide 9: Meeting customer needs
MEETING CUSTOMER NEEDS Omnichannel aga tection No rd access lost reco to products cred inst and dr ry Pro it ad elive Pa s services es ya d cc A ou nt y wa h s Co a nn e as ec ov m c tiv M ro ity f a v e for y Bigge Sa ny da r rai Acce wallet / ss to credit 9
Slide 10: Finserve and connectivity strategy
FINSERVE AND CONNECTIVITY STRATEGY Stitching retail + financial services + Cellular + informal market (omnichannel platform) Making a positive • Grow retail credit and improve efficiencies difference in the lives of • Entrench & unlock value in Cellular through our customers by giving FoneYam • Leverag
Slide 11: Rudi Van Rensburg
. . . it’s in our DNA Rudi Van Rensburg Pepkor Payments and Lending COO
Slide 12: Retail credit books | Sales enablers
RETAIL CREDIT BOOKS | Sales enablers • +1.3m new accounts • 209k active accounts • 3.5m active accounts • R2.2bn gross book • R9.2bn gross book • 13% credit sales mix • 18% credit sales mix cross-shop sales 12
Slide 13: A+ continues to scale rapidly
“A+ continues to scale rapidly as our flagship entry‑level credit product, underpinned by disciplined risk management.” 13
Slide 14: Executive summary
EXECUTIVE SUMMARY 01 Value of a store card customer 02 Growth: Store-led, Cross shop and limit increases 03 Risk is well managed 04 Growth Opportunities 05 Capability 06 Operational efficiency 14
Slide 15: Our A+ customer
OUR A+ CUSTOMER CUSTOMER SPEND 48% R2.6k School First retail credit account Average Balance Home 8% 13% R9.5k 77% Lifetime value of customers cross-shop 23% 56% 4 years 28m Cellular Clothing & Purchase Footwear Avg tenure transactions p.a. 15
Slide 16: Overview - sustained growth with stable risk
OVERVIEW - SUSTAINED GROWTH WITH STABLE RISK GROSS BOOK VALUE Rbn RISK METRICS CAGR 43% 9.2 21% 9.2 19% 19% 6.6 13% 13% 13% 4.5 FY23 FY24 FY25 FY23 FY24 FY25 ECL% NPL% 16
Slide 17: Overview - balancing growth and risk
OVERVIEW - BALANCING GROWTH AND RISK 900K 40% Growth driven by increase in number of application 700K 30% 500K Decline in approval and yield rates 20% 300K 10% Competitor yield ranges over same 100K period: • Competitor A: 17%-20% 0% Sep 22 Sep 23 Sep 24 Sep 25 • Competitor B: 15%-18% Applications r
Slide 18: Overview - stable able to buy
OVERVIEW - STABLE ABLE TO BUY CUSTOMERS ABLE TO BUY VS ACCOUNT GROWTH 80% Credit lines are cut at one month in arrears 70% 3m Able to buy rates are stable 60% at ~73% 2m 40% 1m 20% 0 0% Mar 24 Sep 24 Mar 25 Sep 25 # Accounts MoB <12 # Accounts MoB >12 Able to buy % 18
Slide 19: Making credit available in Pep has driven application growth
MAKING CREDIT AVAILABLE IN PEP HAS DRIVEN APPLICATION GROWTH EXISTING ACQUISITION ADDITIONAL ACQUISITION FOOTPRINT FOOTPRINT Growth in application driven by increase in number of stores openings new accounts Customer acquisition commenced in Pep in FY23 Pep represents>50% of new customer acquisition
Slide 20: Growth is footprint-led
GROWTH IS FOOTPRINT-LED BOOK DISTRIBUTION BY RETAILER ACTIVATIONS - RETAILER 100% 160K 80% 120K 60% 80K 40% 40K 20% 0% 0 2022 2023 2024 2025 2022 2023 2024 2025 20
Slide 21: Very little difference in risk between Pep and Ackermans
VERY LITTLE DIFFERENCE IN RISK BETWEEN PEP AND ACKERMANS VINTAGE (<12MOB): 2+ MONTHS IN ARREARS Comparing the vintages on accounts less than 12 Months-on-Book, 15% shows very similar risk performance 10% PEP book As the matures, the overall risk will reduce 5% 0 FY23 FY24 FY25 Overall 21
Slide 22: Cross shop a key driver of growth
CROSS SHOP A KEY DRIVER OF GROWTH STORE CARD SALES Rbn SALES GROWTH LEVERS Pep new business 10.8 12% Other brands new business Existing 6% account 7.9 growth 42% 5.5 40% Cross-shop and limit increases R2.9bn FY23 FY24 FY25 22
Slide 23: Disciplined upfront limit assignment
DISCIPLINED UPFRONT LIMIT ASSIGNMENT INITIAL LIMITS - RETAILER AVERAGE FIRST PURCHASE VALUE 100% R1000 80% R800 60% R600 40% R400 20% R200 0% R0 2024 2025 <R1000 <R2000 <R3000 <R4000 <R5000 23
Slide 24: Data driven limit decisions
DATA DRIVEN LIMIT DECISIONS CREDIT LIMITS PER MONTH ON BOOK Over time we have introduced a “low-to-grow” limit strategy in phases 5 000 We contract for the maximum limit allowed, but assign a much smaller 4 000 limit based on risk profile 3 000 Performance behaviour is used to “issue” limit increases
Slide 25: Stable utilisation with runway for growth
STABLE UTILISATION WITH RUNWAY FOR GROWTH CREDIT LIMITS & UTILISATION 75% of accounts have a Rbn Shadow Limit 60% 30 The Shadow Limit excludes accounts that are in arrears 20 40% 10 20% 0 0 Feb 22 Feb 23 Feb 24 Feb 25 Feb 26 25 Gross book Current OTB Shadow limit Utilisation
Slide 26: Capability - accessing large untapped customer base
CAPABILITY - ACCESSING LARGE UNTAPPED CUSTOMER BASE BUREAU VISIBLE – 43M PEOPLE Bureau visible Thin >65 Credit active means verified SA ID, not deceased and unique and > 18 14% 54% Thin 18 - 65 6% 23m are credit active Thin 18 - 65 no enquiries 26% 14m Thin file customers - the bulk of which have no e
Slide 27: Converting new-to-credit at scale
CONVERTING NEW-TO-CREDIT AT SCALE ACTIVATIONS - THICK VS. THIN 100% 80% 40% of New accounts are thin file 60% 40% 20 % 0% 2022 2023 2024 2025 Thick Thin 27
Slide 28: With similar risk performance
WITH SIMILAR RISK PERFORMANCE 15% VINTAGE: 2+ MONTHS IN ARREARS Delinquency rates between Thick and Thin customers are very similar 10% Risk cut-offs are managed within appetite 5% 0 FY23 FY24 FY25 Thick Thin Overall 28
Slide 29: Growth levers - Namibia
GROWTH LEVERS - NAMIBIA FEB YTD CREDIT SALES YOY Account acquisition commenced in Pep Namibia during Rm October 2025 300 Feb YTD credit sales for Namibia are up 83% YoY 205 Positive effect across all Brands due to interoperability 200 Speciality cards 150 16% 100 43% Pep cards 50 0 Ackermans 41% car
Slide 30: Growth levers - Legit
GROWTH LEVERS - LEGIT FEB YTD CREDIT SALES The A+ card base was opened for Legit CONTRIBUTION during November 2025 100% 80% Feb YTD credit contribution already 4.8% 60% Speciality cards 6% Pep 33% cards 40% 20% Ackermans 61% 0 cards FY26 Rest 30
Slide 31: Growth levers - +more
GROWTH LEVERS - +MORE +more customer data 16m allows for pre-scoring a large customer database members +more also facilitates identification at POS 1m 3m 13m Combined, this can be leveraged to provide real-time credit offers at POS Enabling growth 4m at a lower cost of acquisition account holders 31
Slide 32: Driving efficiency
DRIVING EFFICIENCY 50% Cost to income ratio 400 down to 28% 40% 300 Account management costs 30% are down from R13 to R9 per account per month 200 20% Acquisition 100 10% costs remain a focus area 0 0 FY23 FY24 FY25 Acquisition cost Monthly cost Cost to per account per account income ratio 32
Slide 33: In summary
In summary Future 3-YR CAGR gross book >15% 01 CUSTOMER BASE 02 VOLUME GROWTH 03 SCALE BENEFITS Embedded Sustained Scale benefits runway for future growth going in account growth forward management: ● Risk is in check ● PEP Namibia ● Focus is now on ● Low to grow – ● Legit acquisition cost increase c
Slide 34: An established, profitable lending business
“An established, profitable lending business driving efficiency, digital migration, and repeat‑customer growth.” 34
Slide 35: Sustained growth with stable risk
SUSTAINED GROWTH WITH STABLE RISK EBIT RISK METRICS Rm 19% 500 17% 17% ROE 400 >20% 300 CAGR 9% 9% 19% 8% 200 100 0 FY23 FY24 FY25 FY23 FY24 FY25 ECL% NPL% 35
Slide 36: Demonstrated ability to migrate to digital channel
DEMONSTRATED ABILITY TO MIGRATE TO DIGITAL CHANNEL 100% Steady migration to online origination driven by digital marketing efforts 80% Pepkor known customer direct base used 60% marketing Supplemented by 40% in-store lead generation 20% Overall result is a lower cost of customer 0 acquisition 2017 2
Slide 37: Loan offers
LOAN OFFERS NEW LOAN SIZE PER TERM 30K >75% of new loans are on 6m terms at R4,400 25K 24 000 Given this entry point, the 20K average new loan value across all terms is R6,900 15K While longer term offers are 10K available, these are heavily 11 400 tilted toward 5K low-risk 0 4 400 customers 6m 12m
Slide 38: Repeat business - grow good customers
REPEAT BUSINESS - GROW GOOD CUSTOMERS REPEAT LOANS PER TERM 6 000 900K 6 months 5 500 17% 800K 5 000 700K 4 500 4 000 24 months 53% 30% 12 months 600K 3 500 500K 3 000 400K 500K NEW LOANS PER TERM 300K 2 000 1 500 200K 24 months 24% 1 000 100K 500 49% 6 months 0 0 FY23 FY24 FY25 12 months 27% Loans
Slide 39: Repeat business
REPEAT BUSINESS GROSS BOOK VALUE PER TERM Rbn Based on 5 performance and using a bespoke behavioural 4 scorecard, qualifying customers are offered more capital and longer terms 3 2 The “Reloan” book 1 carries a bad debt rate of approximately half the new loan book 0 FY23 FY24 FY25 6 month 12 month 2
Slide 40: Growth opportunities
GROWTH OPPORTUNITIES Store cards are generally the entry point to credit 30K 104K 12K We are well placed to develop a loan product tailored to our customers that makes use of our 256K rich behavioural data opportunity is The significant – currently only 3% of our A+ base has a Capfin loan 40
Slide 41: Garth Napier
. . . it’s in our DNA GARTH NAPIER 41
Slide 42: Cellular market trends
CELLULAR MARKET TRENDS Handset inflation 42
Slide 43: Significant market share with strong growth
SIGNIFICANT MARKET SHARE WITH STRONG GROWTH Key growth drivers & insights 1 Driven up the ASP Handset sales of Contribute nearly 73% of all 2 Smartphones R13bn (LY) handsets (up from 65% LY) 24% growth 3 Private label We sell over R1bn worth of private label devices Pepkor sells almost all of the 2G
Slide 44: Smartphone penetration is increasing in our market
SMARTPHONE PENETRATION IS INCREASING IN OUR MARKET SMARTPHONES AS A PERCENTAGE OF SALES UNITS 42% 40% 35% 27% 73% 65% 60% 58% Feature phones Smartphones FY23 FY24 FY25 Q1FY26 44
Slide 45: Prepaid market share
PREPAID MARKET SHARE PEPKOR HANDSET MARKET SHARE BY PRICE POINT less Pepkor has than 50% 75% market share in prepaid handset above R2 000 50% FoneYam has driven market share gains 25% Future market share opportunity 0% exists at higher price points <R900 R900- R1649- R2000- R3000- R4000+ R1649 R2000
Slide 46: A fast-scaling device-rental platform
“A fast‑scaling device‑rental platform leveraging Pepkor’s footprint and proven credit infrastructure.” 46
Slide 47: Strong growth
STRONG GROWTH SALES, BOOK AND EBIT Rbn Launched in August 2023, the 5 product has scaled quickly ROIC >23% 4 Leveraging: • The existing store footprint and immediate access to a very large 3 distribution network • The existing A+ credit operation as a base for back-office functions 2 High demand: 1 •
Slide 48: Risk mitigation
RISK MITIGATION PERCENTAGE OF DEVICES ABLE TO USE 100% Analternative data scorecard is used, allowing for risk differentiation on 80% 95% of applicants. 60% Risk approval rate now 81% The device locked is 40% if no payment has been received for one month Device lock combined with 20% compulsory depo
Slide 49: Risk mitigation
RISK MITIGATION DAYS - LOCKED TO PAYMENT RECEIVED 100% More than 50% of customers pay within 3 days of the device being locked 80% 60% 40% 20% 0% 2025 15+ Days 4-14 days 1-3 days Same day 49
Slide 50: Repeat customers
REPEAT CUSTOMERS 3 500 Rm Returning 600 3 000 customers are offered a choice between 12- and 18-months 500 2 500 contracts 400 2 000 The longer-term option allows for a 300 1 500 higher value device at a more affordable instalment 200 1 000 The reduced margin is offset by lower expected credit 100 5
Slide 51: Repeat customers
REPEAT CUSTOMERS UPGRADE CONVERSION RATE Launch of the 18-month product has significantly 40% improved conversion rates 30% Over 40% of 20% customers upgrade to 18 month product 3 months after qualifying 10% Churn rate, 0% 34% lower vs. normal sim 1 month 3 month 6 month 12 month term 18 month term 5
Slide 52: Cellular supply chain
UNIQUE BEST VALUE HANDSET «PEP ACKERMANS 52
Slide 53: OGR contracts
OGR Contracts OGR CONTRACTS 01 LONG-TERM STABILITY 02 TIERED OGR GROWTH 03 COMBATTING CHURN Long-term fixed agreements All RSA networks offer tiered OGR - Churn runs at pa so we the more base spend we generate have to keep selling starter packs the higher the percentage OGR and phones to keep the bas
Slide 54: Future focus
FUTURE FOCUS 01 GROW MARKET SHARE 02 DRIVE SPEND & TENURE 03 IMPROVE PROFITABILITY • Grow private label • Drive sim swap to • Reduce FoneYam in entry price points keep customers on cost of acquisition • Grow market share in base • Enhance risk >R2,500 price points management and • FoneYam data with
Slide 55: Insurance - Abacus
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Slide 56: Key highlights
KEY HIGHLIGHTS Handsets insured EBIT Funeral policies Market share in funeral 56
Slide 57: Strong growth in premium
STRONG GROWTH IN PREMIUM >65k loans CAGR Abacus 58% Paxi 19% Funeral 114% Foneyam >100% Credit Life 19% 57
Slide 58: Driven by products | Embedded and bundled products
DRIVEN BY PRODUCTS | Embedded and bundled products Embed Bundle Product, channel, and market expansion Additional product, digital channels, Asset, device and parcel protection Credit Life and Funeral payment flexibility, and market expansion to informal markets 58
Slide 59: Funeral cover | Most important for customers
FUNERAL COVER | Most important for customers Ranked Stated Importance Funeral share of total premiums APE², Rbn 0.5% 1 Income Band Other Driver <7.5k 7.5-15k 15-25k 25k-40k Competitor H 10% Competitor A Funeral Cover 1 2 1 1 19% Savings & 6% 2 1 2 2 Competitor G Investments 7% Education 3 3 3 4 Heal
Slide 60: Funeral cover | Abacus fastest growth off low base
FUNERAL COVER | Abacus fastest growth off low base Funeral Cover Total Growth vs. Pricing by Provider High growth driven by • Distribution in over Provider Total Premium Growth 470% Bank 3 000 stores (21Q3 – 25Q3 CAGR) 30% Insurer Fastest growth • Agents selling off small base basket of products 20%
Slide 61: Funeral cover | Lapses and switching driven by price
FUNERAL COVER | Lapses and switching driven by price Consumer Stated Reason for lapsing Consumer Stated Reason for switching (% citations) (% citations) Better living benefits No longer need Brand / Trust 5% 16% 12% Poor service 10% Affordability Better 24% Improved 59% 61% death price 13% benefits Fo
Slide 62: A+ | Platform for collection of premiums
A+ | Platform for collection of premiums 40% Lower Lapse rate on A+ collections Insurance premiums collected on store card We have been able to quickly scale our in–house insurance 40% offering using the A+ 30% store card as collections mechanism 20% 10% 0% Jan 23 Sep 23 Sep 24 Sep 25 External insur
Slide 63: Future focus
FUTURE FOCUS FY28 group Future 3-YR contribution CAGR revenue >R1bn >25% 01 EMBEDDED 02 FUNERAL 03 OK FURNITURE FoneYam ● Update funeral product ● Take-on of credit life and ● Grow cover for 18 to match IFRS 17, PAA asset protection in month contracts ● Acquired PEP and 5 African jurisdictions ● Rev
Slide 64: +more rewards
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Slide 65: Years since launch | Key achievements
2 YEARS SINCE LAUNCH | Key achievements 16.2m members 84% activation rate 80% 12-month active 1.1m monthly active app users 2.2 x higher frequency 65
Slide 66: Scan rates
SCAN RATES Card scans continue to grow >41% revenue linked 34% basket linked 66
Slide 67: Benchmarked performance
BENCHMARKED PERFORMANCE As +more rewards achieves scale in member base size, our focus will shift into entrenching scan behaviour Years in 2 7 31 14 through Market ‘scan every time you shop’, as Member 16.1 m 33.7 m 12.6 m 39.9 m Base well as driving digital adoption % through the App and other Trac
Slide 68: Members | Frequency
MEMBERS | FREQUENCY Shops 2.2x more often vs. non-member 68
Slide 69: Members | Cross shopping
MEMBERS | Cross shopping 4x more likely to cross shop vs. non-members 50% members shop at 2+ brands 69
Slide 70: Members | Linking customers to baskets
MEMBERS | Linking customers to baskets 217k lay-by 900k credit 59% members 616k exclusively 2.1m 1.7m identified in cash* transaction 6.3m cash * Debit, credit and cash 70
Slide 71: Members | Growing trackability
MEMBERS | Growing Trackability 103.5% growth in No. trackable transactions linked to +more scan tracked baskets * Debit, credit and cash 71
Slide 72: What's next for +more rewards?
What’s next for +more rewards? 72
Slide 73: Building an engaging rewards programme
BUILDING AN ENGAGING REWARDS PROGRAMME LEVERAGING Community-centric GAMIFICATION TO OFFER UNPARALLELED Leveraging gameplay principles VALUE (& FUN) Extend beyond transactions 73
Slide 74: Building an engaging rewards programme
BUILDING AN ENGAGING REWARDS PROGRAMME 1.1m active monthly users DIGITISE THE Direct marketing customer journey focus CUSTOMER RELATIONSHIP App auto download on all FoneYam Build utility through ● access to rewards benefits & deals ● convenience of everyday purchases & payments 74
Slide 75: Finserve & connectivity | Summary
FINSERVE & CONNECTIVITY | Summary Future 3-YR CAGR • 8m credit inactive customers in SA GROW • 13m +more members don’t have retail credit with us >20% Finserv revenue CREDIT 1.1m active monthly users • Drive cross-shop leveraging limit increases growth • Drive credit sales in Legit & Namibia • Grow
Slide 76: Thank you
THANK YOU 76