Pepco Group Bv · GPW:PCO
Pepco Group Bv — FY2025 Earnings Presentation
32 slides from Pepco Group Bv's earnings presentation, Sep 25, 2025
Slide 1: 2025 Pre-Close Trading Update
2025 PRE-CLOSE TRADING UPDATE 25 September 2025
Slide 2: 2025 Highlights
2025 HIGHLIGHTS Stephan Borchert CEO
Slide 3: 2025 Highlights
2025 HIGHLIGHTS Positive LFL growth Gross margin in H2 FY25 in all key performance ahead regions of expectations Strong progress in Results tracking in line with our line with CMD strategic objectives guidance 3
Slide 4: Pepco Poland Returns to Growth
PEPCO POLAND RETURNS TO GROWTH Poland (incl FMCG) • Poland returned to positive LFL growth in H2, with strong momentum in Q4 2.6% • Performance driven by improved product availability generating higher H1 H2* volume growth and investment in refits to turnaround weakest stores -3.1% • LFL excl. FMCG
Slide 5: WE: Success in Iberia & Italy
WE: SUCCESS IN IBERIA & ITALY WE (incl FMCG) • Strong LFL performance through the year in Western Europe 10.0% • Significant benefit on LFL excl. FMCG due to floor space reallocation post successful 3.2% Pepco Plus store conversions in Iberia • Converted stores delivering an EBITDA H1 H2* margin upl
Slide 6: Strategic Highlights
STRATEGIC HIGHLIGHTS • Sale of Poundland complete Simplify the Group • Pepco Plus conversions complete • Dealz fully separated, operating with independent management team Central Eastern Europe / • Strong turnaround in LFL performance delivered in both CEE & WE Western Europe • Reallocation of space
Slide 7: Poundland Sale Complete
POUNDLAND SALE COMPLETE • Pepco Group sold Poundland to Gordon Brothers on 12 June 2025 for a nominal consideration • Restructuring plan approved by the High Court on 26 August • A secured loan of £30m remains in place between Pepco Group and Poundland, as well as an overdraft facility of up to £30m
Slide 8: 2025: Year of Inflection Point – Portfolio Update
2025: YEAR OF INFLECTION POINT – PORTFOLIO UPDATE FMCG format exit X Group-wide new Divest Poundland Manage for value WIP as core asset (future divestment) 8
Slide 9: Current Trading
Add trends in CEE vs WE, possible break out Poland. CURRENT TRADING Have asked James (can also ask Sergio) • New Pepco Group revenue growth in the 51 weeks to 21 September 2025 of +8.8% driven by store expansion and LFL revenue growth • Positive performance in Pepco banner with LFL growth in the 51
Slide 10: Financial Overview
FINANCIAL OVERVIEW Willem Eelman CFO
Slide 11: New Pepco Group Has Shown Consistent Growth
NEW PEPCO GROUP HAS SHOWN CONSISTENT GROWTH REVENUE (€BN) GROSS MARGIN % +19.1% CAGR +9.0% YoY +180bps YoY 46.5% 4.2 3.6 41.3% 41.1% 2.9 FY22 FY23 FY24 FY24 FY25 FY22 FY23 FY24 FY24 FY25 Q3 YTD Q3 YTD Q3 YTD Q3 YTD EBITDA (€M) PAT (€M) 28.4% CAGR 787 +10.1% YoY +25.1% CAGR +18.7% YoY 550 199 478 127
Slide 12: New Pepco Group – Strong Base for Further Growth
NEW PEPCO GROUP – STRONG BASE FOR FURTHER GROWTH • By exiting Poundland, we have transformed the baseline of our business putting us in an excellent position for continued growth • New Pepco Group generates significantly faster topline growth, no longer inhibited by stagnant Poundland growth traject
Slide 13: New Pepco Group – Enhanced Profitability
NEW PEPCO GROUP – ENHANCED PROFITABILITY • New Pepco Group delivering far greater EBITDA growth trajectory due to superior gross margin performance demonstrating value in FMCG-exit and in refocusing the Group on higher margin clothing & general merchandise • Group earnings potential significantly en
Slide 14: Strong Unlevered Free Cash Flow Generation
STRONG UNLEVERED FREE CASH FLOW GENERATION • New Pepco Group is highly cash generative whereas • Virtuous circle of growth delivering strong FCF generation Poundland has required ongoing cash support • This enhanced FCF profile will enable greater shareholder returns Strong and FY24 FCF (€m) consist
Slide 15: 9M25 Pro Forma Cash Flow Summary
9M25 PRO FORMA CASH FLOW SUMMARY €m 167 474 (25) 5 418 (36) 363 355 (63) 307 (57) Cash "Old Cash Cash "New Free Cash Cash "New Net Interest Dividend FX / Other Cash "New Funding to Cash "New Group" FY24 Poundland Pepco Group" Flow 9M25 Pepco Group" Pepco Group" Poundland Pepco Group" FY24 FY24 (unle
Slide 16: FY24 & 9M25 Pro Forma Financial Summary
FY24 &financial H1 FY25 9M25highlights PRO FORMA FINANCIAL SUMMARY FY24 9M25 €m Old Pepco Group1 New Pepco Group2 New Pepco Group2 Revenue 6,167 4,160 3,431 Gross profit 2,706 1,934 1,632 Gross margin 43.9% 46.5% 47.6% Underlying EBITDA (IFRS 16) 944 787 647 Underlying EBITDA margin (IFRS 16) 15.3%
Slide 17: 9M25 Pro Forma PAT Bridge
9M25 PRO FORMA PAT BRIDGE €m 320 One-off refinancing 30 charge of c.€10m One-off positive FX expected in Q4 FY25 38 impact of €20m benefitting 9M25 PAT 76 196 20 Tax reflects improving ETR% of 27.9% (FY24: 32.2%) 9M25 Net Interest RoU asset Tax Other 9M25 FY25 PAT Underlying EBIT interest (incl. FX)
Slide 18: Financing
FINANCING Public credit ratings from all 3 rating agencies ‘BB’ rating • April 2026 €250m Term Loan B is now current. As a result, we are focused on refinancing ‘Ba3’ rating • On 24 September, the Group called €175m of its €375m ‘BB-’ rating corporate bond. We are considered a range of financing opt
Slide 19: New Pepco Group Is Delivering on CMD Objectives
NEW PEPCO GROUP IS DELIVERING ON CMD OBJECTIVES FY24 PF baseline2 FY25 CMD guidance Revenue growth €3,853m High single-digit growth Gross margin % 47.5% Flat y-o-y New Pepco1 EBITDA growth (IFRS 16) €763m High single-digit growth EBIT growth (IFRS 16) €388m High single-digit growth EBITDA growth (IF
Slide 20: Summary & Outlook
Summary & Outlook Stephan Borchert CEO
Slide 21: Recap of Our Strategic Framework
RECAP OF OUR STRATEGIC FRAMEWORK 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 21 21
Slide 22: Summary & Outlook
SUMMARY & OUTLOOK • Strong Pepco performance ◦ LFL +2.7% for the 51 weeks YTD ◦ Successful return to growth in Poland ◦ Continued positive momentum in CEE ◦ Powerful early progress in Western Europe • Poundland sale and Pepco FMCG exit drives simplification in Group structure and significant improve
Slide 23: Q&A
pepco® Qroup Q&A
Slide 24: Appendix
pepco® Qroup Appendix
Slide 25: New Pepco Group Pro Forma Historic Financials
NEW PEPCO GROUP PRO FORMA HISTORIC FINANCIALS €m 2022 2023 2024 Revenue 2,933 3,595 4,160 Gross profit 1,211 1,477 1,934 Gross profit margin % 41.3% 41.1% 46.5% Underlying EBITDA (pre-IFRS 16) 290 319 483 Underlying EBITDA (pre-IFRS 16) margin % 9.9% 8.9% 11.6% Underlying EBITDA (IFRS 16) 478 550 78
Slide 26: FY24 Pro Forma P&L Summary
FY24 PRO FORMA P&L SUMMARY €m Old Pepco Group New Pepco Group Revenue 6,167 4,160 Like-for like revenue (%) -3.2% -3.0% Gross profit 2,706 1,934 Gross profit margin (%) 43.9% 46.5% Underlying EBITDA (IFRS-16) 944 787 Underlying EBITDA margin (%) (IFRS-16) 15.3% 18.9% Depreciation and amortisation (5
Slide 27: FY24 Pre-IFRS 16 vs IFRS 16 Profit Comparison
FY24 PRE-IFRS 16 VS IFRS 16 PROFIT COMPARISON All results below are presented on an underlying basis Old Pepco Group Old Pepco Group New Pepco Group New Pepco Group €m Pre-IFRS 16 IFRS 16 Pre-IFRS 16 IFRS 16 Revenue 6,167 6,167 4,160 4,160 Operating expenses (2,192) (1,762) (1,451) (1,146) Operating
Slide 28: FY24 Pre-IFRS 16 vs IFRS 16 Analysis
FY24 PRE-IFRS 16 VS IFRS 16 ANALYSIS €m Old Pepco Group New Pepco Group Depreciation & amortisation: Pre-IFRS 16 (204) (144) Depreciation & amortisation: IFRS 16 (360) (263) Total depreciation & amortisation (564) (408) Net interest: Pre-IFRS 16 (44) (44) Net interest: IFRS 16 (65) (42) Total net in
Slide 29: FY24 Pro Forma Cash Flow Summary
FY24 PRO FORMA CASH FLOW SUMMARY €m Old Pepco Group New Pepco Group Underlying EBITDA pre-IFRS 16 515 483 Working capital 3 68 Tax paid (85) (84) Operating Cash Flow 432 466 Non-underlying items (52) (46) Capex (212) (149) Free Cash Flow (unlevered) 168 271 Net interest paid (33) (34) External borro
Slide 30: FY24 Pro Forma Balance Sheet Summary
FY24 PRO FORMA BALANCE SHEET SUMMARY €m Old Pepco Group New Pepco Group Assets Property, plant and equipment 743 553 Right of Use Asset 1,305 1,007 Intangible assets 107 30 Trade and other receivables 103 51 External loan receivable - 258 Derivative financial instruments (assets) 35 31 Deferred tax
Slide 31: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK ANNUAL ESTIMATED CAPITAL ALLOCATION Organic Growth ~€85m – 95m Operational uses Tech Initiatives ~€60m – 65m Supply Chain ~€15m – 20m Leverage target of 0.5x–1.5x Financial uses Debt paydown (Pre-IFRS 16) Surplus cash to be distributed in line Capital Returns with board
Slide 32: 'New Pepco' Medium-Term Ambition from FY26
‘NEW PEPCO’ MEDIUM-TERM AMBITION FROM FY26 Revenue growth of at least 7% CAGR EBITDA growth of at least 9% CAGR Gross margin of c. 48% Around 250 net new stores p.a. Greater than €200m unlevered free cash flow; Capex of €160m to €180m p.a. Leverage no higher than 1.5x (pre IFRS 16) (1) New Pepco equ