3i Group Plc · LSE:III
3i — Investor Day (March 2025)
64 slides from 3i's investor day presentation, Mar 20, 2025
Slide 1: 3i Action Capital Markets Seminar
3i Action Capital Markets Seminar 20 March 2025
Slide 2: Agenda
Agenda 10.00-12.00 Action’s results and strategy Simon Borrows Q&A Chief Executive, 3i Hajir Hajji CEO, Action Joost Sliepenbeek CFO, Action
Slide 3: Action's consistent track record of growth continued in 2024
Action’s consistent track record of growth continued in 2024 Net sales1 (€m) 13,781 Initial investment 11,324 +24% CAGR 8,859 6,834 5,114 5,637 4,216 3,418 2,034 2,675 873 1,155 1,506 231 284 341 426 515 607 718 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 202
Slide 4: Action continues to outperform its peers
Action continues to outperform its peers Performance over last five years and last twelve months LFL sales growth Store growth Net sales growth Operating EBITDA growth +20p.p. 31% +11p.p. Last five years 22% +6p.p +6p.p. 13% 11% 11% 10% 8% 5% Peers average Peers average Peers average Peers average +
Slide 5: Performance drives strong returns for 3i shareholders
Performance drives strong returns for 3i shareholders Action – 3i carrying value, £m1 ~£0.8bn ~£1.2bn capital proceeds capital proceeds Distributions, £m2 £59m £113m £168m £187m £307m £402m £288m £328m £1.1bn £1.4bn 17,139 14,158 11,188 7,165 4,566 3,536 2,731 1,708 2,064 280 501 592 902 143 FY123 F
Slide 6: Today's presenters
Today’s presenters Hajir Hajji Joost Sliepenbeek Chief Executive Officer Chief Financial Officer Joined in September 1997 Joined in November 2018 Held variety of management positions at Action: 26 years of Consumer & Retail experience Commercial Director (2018 – 2021) 37 years of experience in finan
Slide 7: Agenda
Agenda 1. Introduction Simon Borrows 2. Business performance update Hajir Hajji 3. Strategic update Hajir Hajji 4. Financial performance 2024 Joost Sliepenbeek 5. Trading update and outlook Joost Sliepenbeek 6. Wrap up Simon Borrows 3i Capital Markets Seminar 2025 | Action 7
Slide 8: Welcome to
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Slide 9: 2024 was another year marked by customer growth and a record number of store openings
2024 was another year marked by customer growth and a record number of store openings €13.8 +10.3% €2,076 352 81% Billion Like-for-like Million Stores Cash net sales sales operating added conversion growth EBITDA +21.7% +28.6% 3i Capital Markets Seminar 2025 | Action 9
Slide 10: Key drivers contributing to our growth in 2024
Key drivers contributing to our growth in 2024 ALWAYS THE FLEXIBLE OFFERING EXPANSION COLLEAGUES LOWEST PRICE OF DAILY NECCESITIES 3i Capital Markets Seminar 2025 | Action 10
Slide 11: Key challenges of 2024
Key challenges of 2024 PARALLEL ECONOMIC VOLUME GROWTH VOLUME GROWTH INVESTMENTS BACKDROP IN STORES IN SUPPLY CHAIN IN SYSTEMS 3i Capital Markets Seminar 2025 | Action 11
Slide 12: We maintain a strong price position versus competitors
We maintain a strong price position versus competitors Price index1) versus competitors by country 195 190 188 187 181 179 179 179 178 177 176 175 175 172 164 161 158 156 100 100 100 100 100 100 100 100 100 NL BE DE FR AT PL CZ IT ES Action Competitors Q4 2023 Competitors Q4 2024 1) In total we meas
Slide 13: The flexibility of our formula allows us to evolve and adapt our categories
The flexibility of our formula allows us to evolve and adapt our categories Blueprint changes in 6 categories in 2024 2024 Like-for-like sales growth by category1) 1 2 Toys & Health Garden & 3 Linen Stationery Entertainment Outdoor 4 5 6 7 8 9 Pets Clothing DIY Household Decoration Goods 10 11 12 13
Slide 14: We added 352 stores and 2 distribution centres across Europe
We added 352 stores and 2 distribution centres across Europe X # of stores at the end of 2024 Expansion 2024 +X Stores added in 2024 Existing DCs end of 2023 H Existing Hubs +4 2,918 Stores at the end of 2024 418 New DCs 2024 585 +7 +59 387 222 +65 H +352 Stores added in 2024 H 11 83 +20 28 117 +13
Slide 15: Our growth is accelerating in newly opened countries
Our growth is accelerating in newly opened countries, with a warm welcome from customers Italy 2021 Spain 2022 Portugal 2024 DC Belleville, DC Labastide, France DC Altedo, France Italy DC Illescas, Spain DC Illescas, Spain # of stores in first years # of stores in first years # of stores in first ye
Slide 16: We continue to invest in our systems and organisation
We continue to invest in our systems and organisation to support our volume-driven growth and future ambitions 2024 2019 2022 >18mln customers >8mln >12mln per week customers customers per week per week 7 1,552 8 >41k 11 2,263 10 >60k 12 2,918 15 >79k Countries Stores DCs Employees Countries Stores
Slide 17: We made considerable progress with our Action Sustainability Programme in 2024
We made considerable progress with our Action Sustainability Programme in 2024 People Planet 51% absolute reduction of CO2 emissions from own 10,641 jobs were created in 2024 across the operations (scope 1&2) vs 2021 company Opening of first gas-free DC, built according to 3,507 employees internally
Slide 18: We invest in the growth and development of our people
We invest in the growth and development of our people Jobs and development As diverse as the communities As we grow, opportunities for many in which we operate our colleagues grow with us 79,681 colleagues 151 nationalities 3,507 internal promotions 10,641 jobs created in 2024 72% female, 28% male >
Slide 19: Agenda
Agenda 1. Introduction Simon Borrows 2. Business performance update Hajir Hajji 3. Strategic update Hajir Hajji 4. Financial performance 2024 Joost Sliepenbeek 5. Trading update and outlook Joost Sliepenbeek 6. Wrap up Simon Borrows 3i Capital Markets Seminar 2025 | Action 19
Slide 20: Our strategy is simple and consistent
Our strategy is simple and consistent Strengthen our customer Drive international proposition growth Maintain a simple, efficient and scalable operating model Make sustainability accessible Treasure our people and values 3i Capital Markets Seminar 2025 | Action 20
Slide 21: Action is the same everywhere
Action is the same everywhere ONE BRAND ONE STORE EXPERIENCE ONE OPERATING MODEL Our name works All our stores are the same The same policies, structures, in all our countries processes, systems, training, More than 90% of our assortment and so on — everywhere Products, packaging and marketing is th
Slide 22: Our continued growth provides a sustainable competitive advantage
Our continued growth provides a sustainable competitive advantage Action’s increasing scale through Store rollout Action continues to reinvest in the store rollout & growth further & growth customer value proposition enhances competitive advantage through even lower prices, quality Customer and cont
Slide 23: While flexibility and simplicity enable scaling at low cost
While flexibility and simplicity enable scaling at low cost Big volume No fixed No high street purchases assortment locations Efficient Low overhead Low marketing logistics costs expenditure 3i Capital Markets Seminar 2025 | Action 23
Slide 24: Action offers a surprising assortment across 14 categories at low price points
Action offers a surprising assortment across 14 categories at low price points ~6,000 items across 14 categories.. ..with a surprising assortment.. ..at low price points Fixed assortment Superfinn dishwashing liquid 7% Above €5 Toys & Health Garden & Linen 1/3 Between 26% €2-€5 Entertainment Outdoor
Slide 25: Award-winning private label products
Continuous investment in quality has resulted in award- winning private label products Zenova sensitive sun milk Pure Soft toilet paper Electric toothbrush head Best buy June 2024 in Belgium Best buy January 2025 in Belgium Best buy & best in the test January 2025 in the Netherlands Max & More eyesh
Slide 26: Action's brand and formula appeal to everyone
Action’s brand and formula appeal to everyone Customers that visited Action stores 18-34 low high 21% low 24% 32% 32% male 40% high 50+ 40% 48% female 60% 35-49 28% middle middle 47% 28% GENDER AGE EDUCATION INCOME Source: GfK, June 2024; average of Action markets with national coverage NL, BE, DE,
Slide 27: Well-established touchpoints enhance awareness and appreciation
We have well-established touchpoints that enhance awareness and appreciation across various countries Brand awareness and penetration by country 2024 Brand awareness1) 94% Penetration1)2) 83% 82% 69% 67% 61% 62% 57% 55% 48% 41% 34% 36% 31% 32% 28% 28% 24% 24% 14% 15% 13% NL BE FR AT PL DE SK CZ PT I
Slide 28: Our unique sourcing mix and approach to diversification
Our unique sourcing mix and approach to diversification are fundamental to our customer proposition Our sourcing mix Diversifying our sourcing Geographical diversification Asia Importers and A-brands wholesalers Increasing proximity sourcing Direct sourcing Stocklot traders Sourcing markets 3i Capit
Slide 29: The four pillars of our Action Sustainability Programme
The four pillars of our Action Sustainability Programme to make sustainability accessible People Planet Our colleagues are the beating heart of Action. We offer We are committed to reducing greenhouse gas (GHG) stable employment to a fast-growing number of people. emissions across our value chain. O
Slide 30: Investing in people, society and communities through partnerships
We continue to invest in the development of our people, society, and communities through our partnerships Objectives 2025 People Partnership Continue SOS Children’s Village partnership and 3,600 internal promotions across all countries open Johan Cruyff Foundation courts in 3 and entities countries
Slide 31: Reducing our impact on the environment
We are reducing our impact on the environment to ensure responsible future growth Objectives 2025 Planet Product Increase of scope 1&2 absolute emission Deliver full transparency on all tier 1 suppliers reduction target from 60% to 75% by 2030 Extend electric transport pilot for store delivery Launc
Slide 32: Current markets include a number of growth engines
Current markets include a number of growth engines Stores per million # of stores Stores added Entry year people1) end of 2024 since 2019 More mature 23 Netherlands 1993 418 +31 countries 19 Belgium 2005 222 +40 16 Luxembourg 2015 11 +3 13 Austria 2015 117 +63 13 France 2012 859 +342 11 Poland 2017
Slide 33: We conduct thorough research before entering new markets
We conduct thorough research before entering new markets Perform Update country Establish local Local team opens market studies sequencing based team and stores under on clear criteria prepare all IHQ guidance of IHQ depts set-up team 2-3 years, depending on country complexity 3i Capital Markets Sem
Slide 34: A proven and disciplined approach for opening new stores
We have a proven and disciplined approach for opening new stores, adhering to our store location criteria No compromise on store location One structured approach to hire and Dedicated teams in place to build criteria: train colleagues and maintain the store • Catchment (>40k) International store ope
Slide 35: Our store format is consistent across countries
Our store format is consistent across countries volgt volgt [Add picture of new store 2024] [Add picture of new store 2024] Looks to different, different angle better České Budějovice - CZ Jodoigne - BE Aulnoye-Aymeries - FR volgt Store format: it looks more like ques at the check-out; not store for
Slide 36: Significant further growth opportunities across Europe
Both existing and new markets show significant further growth opportunities across Europe % of current store potential filled Action existing markets ∑ = 441m ∑ = 102m Population in millions 30 68 94 53 59 49 11 9 19 49 102 % of store potential Total of 2,918 stores at the end of 2024 BeNeLux FR DE+
Slide 37: Building our distribution network further to support expansion
We are building our distribution network further to support our expansion Existing DCs at the end of 2024 Overview distribution centres H Existing Hubs Planned DCs 2025-2026 Dunikowo Tilburg 15 DCs at the end of 2024 H New hubs in 2025 (Hub) H Onnaing H 5 planned DCs for 2025-2026 H Wallersdorf H 1
Slide 38: Agenda
Agenda 1. Introduction Simon Borrows 2. Business performance update Hajir Hajji 3. Strategic update Hajir Hajji 4. Financial performance 2024 2022 Joost Sliepenbeek 5. Trading update and outlook Joost Sliepenbeek 6. Wrap up Simon Borrows 3i Capital Markets Seminar 2025 | Action 38
Slide 39: Our repeatable financial model remains unchanged
Our repeatable financial model remains unchanged 1 2 Fast moving and flexible assortment New store rollout and country expansion Consistent gross margin across Clear value Superior store categories drivers LfL sales growth economics All stores are profitable EBITDA margin High sales density 3 4 Prov
Slide 40: We had a good financial performance in 2024
We had a good financial performance in 2024 The reason is simple… … and the economics are extremely attractive 1 <1 year average historical payback on One single and successful format new store CAPEX 2 Proven to travel across borders All stores are profitable 3 First class store opening teams and St
Slide 41: Sales and EBITDA growth in 2024
Sales and EBITDA growth in 2024 Net sales (€m) Operating EBITDA (€m) +22% +29% +22% +31% 13,781 2,076 CAGR CAGR 11,324 1,615 8,859 1,205 6,834 5,114 5,569 828 541 609 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 EBITDA margin% 10.6 10.9 12.1 13.6 14.3 15.1 All financials in this prese
Slide 42: 2024 LFL sales growth driven by increase in transactions
2024 LFL sales growth driven by increase in transactions 18.1% 16.7% 11.0% 10.3% 5.6% (1.4%) 2019 2020 2021 2022 2023 2024 Like-for-like sales growth refers to net sales in a financial period compared with net sales achieved in the previous period for stores that have been trading 3i Capital Markets
Slide 43: Stable sales growth development in 2024
Stable sales growth development in 2024, Q4 positively influenced by good seasonal performance 24.3% 19.5% 19.3% Strong growth in the number of transactions against weak 2022 16.7% 14.5% 10.9% 11.2% 11.4% 11.5% 10.3% 9.8% 8.4% 9.7% 6.4% -0.7% Q1 Q2 Q3 Q4 FY Relative strong Growth mainly Strong seaso
Slide 44: Strong sales growth in all countries
Strong sales growth in all countries Sales growth by country – stores opened before 2022 60.0% Average store contribution: ~25% 42.0% 43.9% 30.3% 29.7% 27.7% 26.8% 25.9% 21.8% 18.4% 18.6% 16.2% 16.7% 14.6% 13.4% 12.3% Netherlands BELUX Germany France Austria Poland Czechia Italy 2023 vs 2022 2024 vs
Slide 45: Store expansion: another record year
Store expansion: another record year Store opening development by country1) 354 13 10 308 282 15 40 269 5 21 7 21 65 230 16 23 39 32 19 20 74 16 164 81 66 5 11 66 93 44 15 13 9 15 94 74 75 60 42 59 42 46 46 46 59 18 8 13 9 6 12 8 8 8 8 5 7 2019 2020 2021 2022 2023 2024 Netherlands BeLux Germany Fran
Slide 46: Good margins across all categories
Good margins across all categories Gross margin by category (%) – 2024 50% Total gross margin: 40.4% 40% 30% 20% 10% 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Gross margin is the difference between sales and cost of goods sold, divided by sales 3i Capital Markets Seminar 2025 | Action 46
Slide 47: All mature stores are profitable
All mature stores are profitable Store contribution (€k) and store contribution margins (%)¹)²) Average store contribution: 24.7% Store contribution margin % Store contribution 2024 Mature stores – ordered high to low store contribution Store contribution (in €k) by store Store contribution margin %
Slide 48: Stable store contribution across countries
Stable store contribution across countries Store contribution margin per country – 2024¹) 30% Average store contribution: 24.7% 20% 10% 0% 1 2 3 4 5 6 7 8 9 1) Calculated using mature stores, which are all stores opened before 1 January 2023, Belgium and Luxembourg combined 3i Capital Markets Semina
Slide 49: Attractive payback period for new stores
Attractive payback period for new stores Average payback of stores opened 2020-2023 (€m) €4.7m ~+€0.7m <1 year payback period3) ~(€0.5)m Upfront Investment¹) Sales per store²) Store contribution 1) Including pre-opening costs for new stores, excluding positive impact NWC 3i Capital Markets Seminar 2
Slide 50: EBITDA margin improvement mainly driven by operating leverage
EBITDA margin improvement mainly driven by operating leverage EBITDA margin development 0.3% 15.1% 0.8% 14.3% 0.2% Housing 0.4% Wages -0.3% Other -0.3% 2023 Gross margin%1) Operating leverage OPEX 2024 1) Including margin adjustments 3i Capital Markets Seminar 2025 | Action 50
Slide 51: Another step-up in profitability per square metre
Another step-up in profitability per square metre Net sales / square metre (€)¹) Operating EBITDA / square metre (€)¹) +8% +7% +13% +16% CAGR ~5,948 CAGR ~890 ~5,540 ~790 ~4,910 ~4,109 ~670 ~435 2019 2022 2023 2024 2019 2022 2023 2024 1) Based on the average number of stores during the year 3i Capit
Slide 52: Continued investment in our expansion
Continued investment in our expansion CAPEX development (€m) +42% +13% 369 260 230 85 210 183 19 173 66 36 46 45 37 37 9 30 216 135 168 98 117 71 (15) (26) 2019 2020 2021¹) 2022 2023¹) 2024 As % of 4.1 3.1 2.7 2.6 2.3 2.7 net sales Store expansion3) New DCs3) Technology Store maintenance / RERs2),3)
Slide 53: Cashflow: 2024 cash conversion of 81%
Cashflow: 2024 cash conversion of 81% Cash conversion (€m and % of operating EBITDA) 1,800 1,685 1,679 125 1,600 104% Operating cash flows positively 93% 100 impacted by low ending inventory in 1,400 81% 2023, normalised again in 2024 1,200 71% 78% 69% 75 Cash and cash equivalents at the end 1,000 9
Slide 54: Two successful debt financing transactions in 2024
Two successful debt financing transactions in 2024 Transaction overview €2.1bn incremental new 7-year €3.1bn leverage neutral TLB debt issuance Amend, extend and repricing (A9, July 2024) (A10, November 2024) $1.5bn €700m €2,545m €580m Size (TLB5) (TLB6) (TLB7) (TLB3B) Pricing S+300bps, E+325bps, E+
Slide 55: Overview of high-level financials
Overview of high-level financials Change 2022 2023 2024 (vs 2023) Net sales (€m) 8,859 11,324 13,781 +21.7% LFL sales growth (reported) 18.1% 16.7% 10.3% Operating EBITDA (€m) 1,205 1,615 2,076 +28.6% EBITDA margin 13.6% 14.3% 15.1% Cash conversion 78% 104% 81% Number of stores (end of year) 2,263 2
Slide 56: Agenda
Agenda 1. Introduction Simon Borrows 2. Business performance update Hajir Hajji 3. Strategic update Hajir Hajji 4. Financial performance 2024 Joost Sliepenbeek 5. Trading trading update update and and outlook outlook oost Sliepenbeek Joost Sliepenbeek 6. Wrap up Simon Borrows 3i Capital Markets Semi
Slide 57: Current trading 2025 and outlook
Current trading 2025 and outlook Net sales to week 11 (€m) Debt financing transaction 2025 €3.5bn leverage neutral repricing (A11, March 2025) $1.5bn $1.5bn €700m +17% Sales growth of 17% versus Size (TLB4) (TLB5) (TLB 6) 2,955 same period in 2024 Pricing S+250bps, S+250bps, E+275bps, (margin/OID) a
Slide 58: Agenda
Agenda 1. Introduction Simon Borrows 2. Business performance update Hajir Hajji 3. Strategic update Hajir Hajji 4. Financial performance 2024 Joost Sliepenbeek 5. Trading update and outlook Joost Sliepenbeek 6. Wrap up Simon Borrows 3i Capital Markets Seminar 2025 | Action 58
Slide 59: Action's long-term approach is delivering high-return international expansion
Action’s long-term approach is delivering significant, high-return, international expansion Strategic rollout post 2025 Milestones 2019-2024 Simplicity and Expansion and consistency Milestones 2012-2018 Proving international consolidation expansion • Transitioned from founders to professional • Sign
Slide 60: Action continues to perform in line with best-in-class retailers
Action continues to perform in line with best-in-class retailers, with a long growth runway ahead Top-line growth since €1bn/$1bn sales (20 years window, rebased to 100) 2,800 2,450 2,100 1,750 2013-2024 1,400 1,050 700 350 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Years after reaching €1
Slide 61: 3i provides long-term capital backing and strong governance
3i provides long-term capital backing and strong governance Governance Long-term vision 3i provides active and responsible governance with a 3i brings an ambitious, growth-orientated long-term focus on the Action Sustainability Programme mindset to Action Investment Values Prioritisation of investme
Slide 62: Q&A Thank you
Selection of awards won Q&A in 2024 Thank you
Slide 63: Appendix: alternative performance measures
Appendix: alternative performance measures Alternative performance measures in this presentation are Impact IFRS on gross profit used to allow for a better understanding of Action's operating and financial performance Amount Action has decided to include like-for-like sales growth, In €m in EUR Perc
Slide 64: Appendix: impact of IFRS16 on Action 2024 financials
Appendix: impact of IFRS16 on Action 2024 financials Income statement1) Balance sheet1) Excluding Including IFRS 16 Excluding Including IFRS 16 In €m IFRS 16 IFRS 16 impact In €m IFRS 16 IFRS 16 impact Gross margin (%) Non-current assets 1,549 1,559 +10 Operating EBITDA 2,076 2,450 +374 Right-of-use