Pepkor Holdings Ltd. · JSE:PPH
Pepkor — Debt Investor Presentation (February 2025)
28 slides from Pepkor's debt investor presentation, Feb 4, 2025
Slide 1: DMTN Issuance
DMTN ISSUANCE 4 February 2025
Slide 2: Disclaimer
Disclaimer ISSUER The information contained in this presentation is confidential and is intended solely for this presentation. This presentation may contain information proprietary to Pepkor Holdings Limited (“the Company”), and may not be reproduced or disseminated in whole or in part without the C
Slide 3: Agenda
Agenda 01 Financial performance 02 Bond offering 03 Q&A 3
Slide 4: Financial Performance
RIAAN HANEKOM – CFO 01 FINANCIAL PERFORMANCE 4
Slide 5: FY24 – Performance
FY24 – Performance Solving customer needs +7.8% R85.1bn revenue +9.2% normalised & comparable +13.5% R32.6bn gross profit +8.4% R9.8bn operating profit +17.4% normalised & comparable Market share gains (0.4%) 140.2c HEPS +10.3% normalised & comparable R11.9bn cash generated Improved margin 22.3% ret
Slide 6: Retail segments and FinTech
Retail 15% FinTech segments segment Clothing & general Furniture, appliances GROUP 13% Financial services Informal market merchandise segment & electronics segment REVENUE 72% CGM FAE FinTech 14% 7% GROUP OPERATING PROFIT 79% 6
Slide 7: Retail credit books
Retail credit books 6.6 4.5 Gross book size (Rbn) 1.9 2.0 0.9 0.8 FY23 FY24 FY23 FY24 FY23 FY24 33% 32% Provision levels % 21% 21% 21% 19% 21% 23% 14% NPL % 13% 13% 13% FY23 FY24 FY23 FY24 FY23 FY24 7
Slide 8: Unsecured lending credit book and cellular rental book
Unsecured lending credit book Cellular rental book 3.3 20% 2.5 ROE 18% 17% > 20% 0.9 9% 8% – – FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 Gross book Provision Gross book Provision size (Rbn) level % size (Rbn) level % NPL % 8
Slide 9: Low net debt
Low net debt DEBT REPAYMENT PROFILE: 30 SEPTEMBER 2024 (Rbn) R7.6bn R7.3bn 0.7 times FY25 FY26 FY27 FY28 FY29 R7.1bn R7.1bn net debt-to-EBITDA -0.9 6.2 times EBITDA- -1.3 R5.0bn interest cover -2.8 -3.1 -3.5 R2.2bn notes raised at substantially lower rates Replaced R1.9bn FY20 FY21 FY22 FY23 FY24 •
Slide 10: Net finance costs
Net finance costs +16.3% R3.2bn R3.0bn R1.7bn R1.5bn R2.8bn R1.4bn Non-IFRS 16 component R2.2bn Higher interest rates R2.1bn R0.8bn R0.8bn R1.5bn R1.5bn IFRS 16 R1.4bn R1.4bn R1.3bn component FY20 FY21 FY22 FY23 FY24 10
Slide 11: R12bn cash generated
R12bn billion cash generated 3 871 3 384 79% 3 671 cash conversion 15 169 922 2 297 11 921 1 439 EBITDA1 Non-cash Inventory Retail Handset Lending Trade Cash adjustments credit rental payables generated & other by operations 1 EBITDA before capital items (Rm) 11
Slide 12: Returns
Returns 7-YR AVERAGE Return on net assets 24.8% 35.5% 36.0% Investment in books Investment in books 27.0% Return on equity 6.9% 22.3% 23.2% 15.8% 14.0% 10.1% 8.7% 8.7% 7.8% 5.2% 4.0% 3.5% FY18 FY19 FY20 FY21 FY22 FY23 FY24 12
Slide 13: Capital allocation
Capital allocation ORGANIC GROWTH M&A 2.9% 2.9% 2.9% Capex 2.4% Disposal implemented % of revenue R1.2bn proceeds Discontinued operations FY22 FY23 FY24 FY25 Acquisition announced Capex excluding Hammarsdale DC development & social unrest and floods 3 Sep 2024 Strategic investments < c.4% of market
Slide 14: Q1FY25 Trading update
Q1FY25 Trading update Total sales LFL sales growth growth New stores +12.1% revenue growth Total retail +9.5% +7.3% 95 Robust sales growth & market share gains in +9.7% +7.6% 73 Traditional Retail +13.4% +12.1% 30 Significant growth in +10.3% +9.7% 11 Fintech +9.4% +5.5% 25 Continued trading momentu
Slide 15: Bond Offering
DELIA PATERSON/LEIGH BUCKLEY 02 RMB BOND OFFERING 15
Slide 16: Proposed offering
Proposed offering Indicative term sheet Issuer Pepkor Holdings Ltd Guarantor Pepkor Trading Pty Ltd Credit rating Aa1.za Programme ZAR10bn Auction date 5 March 2025 Settlement date 10 March 2025 Indicative target issue size Up to ZAR2bn PEP09 PEP10 Indicative tenor 3-year 5-year Maturity date 6 Marc
Slide 17: Pepkor Holdings Limited
PEPKOR Holdings Limited
Slide 18: FY24 – Highlights
FY24 – Highlights Building Better Business Enabling affordable living Best Price Leadership 1.2m new accounts added 1m customers added 1m policies written Inclusive growth 4 143 learnerships provided Road to green 9.4 MWp total solar capacity installed Disposed Continued FTSE/JSE Responsible Acquiri
Slide 19: Cash vs credit sales mix - FY24
Cash vs credit sales mix - FY24 0% 9% 20% 100% 13% 42% 12% 14% 91% 87% 88% 86% 80% 58% Credit Cash PEP Ackermans PEP Speciality Avenida Lifestyle Pepkor Africa Group group 19
Slide 20: Retail store footprint
Retail store footprint 30 September 2023 Openings Closures Net movement 30 September 2024 Retail area Retail area Retail area Retail stores ‘000 m2 Retail stores Retail stores Retail stores ‘000 m2 Retail stores ‘000 m2 Clothing and general merchandise 4 888 1 870 202 (97) 105 40 4 993 1 910 PEP 2 6
Slide 21: Normalised & comparable results - FY24
Normalised & comparable results - FY24 Normalised & Statutory Non-recurring Comparable Statutory Continuing operations Year ended IFRS 16 53rd trading Year ended Year ended Rm 30 Sep 2023 adjustment week 30 Sep 2023 30 Sep 2024 % change Revenue 78 960 – (994) 77 966 85 136 +9.2% Operating profit bef
Slide 22: Group structure
Group structure Guarantor contribution: Revenue 69% EBIT 71% 22
Slide 23: Governance
Governance Executive directors Independent non-executive directors CEO CFO Chair 17% 75% Non-executive director 8% Diversity Audit Human Investment Nomination Social and Black 5 Male 6 and risk committee resources and committee committee ethics committee remuneration committee White 7 Female 6 23
Slide 24: Building Better Business
Building Better Business We support livelihoods We develop our through enabling Enabling employees, support accessibility to affordable affordable suppliers, and invest in living products and services Building communities we operate Better Business We are efficient with natural resources to keep cos
Slide 25: Enabling affordable living
Enabling affordable living Pepkor plays a key role in democratising sustainability for customers, making sustainable options accessible and affordable where feasible. R52 average item price in PEP – Best Price Leadership 1 million FoneYam customers – making smartphones affordable 2 million sole flex
Slide 26: Inclusive growth
Inclusive growth Learnerships – addressing youth unemployment 4 143 learnerships provided in FY24 32% of all W&R SETA sector learnerships provided by Pepkor Pepkor Retail Learnership Academy is an accredited Skills Development Training Provider with the QCTO1 28% of learnership spend targeted unempl
Slide 27: Road to green
Road to green LED LIGHTS SOLAR 34% average 60 R92 9.4 saving in electricity use million MWp from lights in stores completed solar investment total installed sites solar capacity 24 750 tCO e saved 2 INVERTERS TARGET since 2019 – enough to charge 3.7bn 519 +1.0 MWp new inverters cellular phones insta
Slide 28: Thank you
PEPKOR Holdings Limited
Pepkor Holdings — Debt Investor Presentation (February 2025) on 6ix