Pepkor Holdings Ltd. · JSE:PPH
Pepkor — H1 FY2026 Earnings Presentation
55 slides from Pepkor's earnings presentation, 2026
Slide 1: Interim results for the six months ended 31 March 2026
Slide 2: Agenda
. . . it’s in our DNA 1 Results Overview Pieter Erasmus – CEO 2 Financial Results Riaan Hanekom – CFO 3 Performance & Strategic Implementation Retail Platform Sean Cardinaal – COO Financial Services & Connectivity Garth Napier – CCO Informal Market Platform 4 Outlook Pieter Erasmus – CEO 5 Q&A
Slide 3: Pieter Erasmus, Chief executive officer
. . . it’s in our DNA PIETER ERASMUS Chief executive officer
Slide 4: The scalable Pepkor consumer platform
THE SCALABLE PEPKOR CONSUMER PLATFORM OUTPACING BROADER MARKET CONDITIONS Retail Platform 6 657 retail stores +89 new stores opened Successful implementation of targeted acquisitions Unemployment Financial Services Cost of living +1.3m activations Competition +12.1% Approval obtained to establish a
Slide 5: Riaan Hanekom, Chief financial officer
. . . it’s in our DNA RIAAN HANEKOM Chief financial officer Continuing operations
Slide 6: Group results – overview
GROUP RESULTS – OVERVIEW CONTINUING OPERATIONS Revenue +13.2% HEPS +10.3% R54.8bn +8.5% excl. M&A 93.1c +12.1% excl. M&A & PlusB Gross profit margin +170 bps EPS +12.1% 40.8% 93.3c Bargain purchase EBITDA +11.6% Cash generated +15.1% R9.1bn R4.1bn Operating profit +9.4% Return on net assets (LTM) R6.3
Slide 7: New reporting segments
NEW REPORTING SEGMENTS REFLECTING STRATEGIC PRIORITIES 1 Clothing & 2 Furniture, 3 Financial 4 Informal Market General Appliances & Services Platform Merchandise Electronics segment segment segment segment Southern Africa Retail credit Retail credit International 7
Slide 8: New reporting segments
NEW REPORTING SEGMENTS REFLECTING STRATEGIC PRIORITIES 1 Clothing & 2 Furniture, 3 Financial 4 Informal Market General Appliances & Services Platform Merchandise Electronics segment segment segment segment Southern Africa Retail credit Retail credit International 8
Slide 9: New reporting segments
NEW REPORTING SEGMENTS REFLECTING STRATEGIC PRIORITIES 1 Clothing & 2 Furniture, 3 Financial 4 Informal Market General Appliances & Services Platform Merchandise Electronics segment segment segment segment Southern Africa Retail credit Retail credit Cloudbadger International 9
Slide 10: Revenue
REVENUE GROWTH OFF A HIGH BASE +8.5% +38.7% excl. M&A & PlusB excl. M&A & PlusB +5.1% excl. M&A +7.2% +10.4% +13.2% excl. M&A +41.6% +14.4% R54.8bn +11.6% PRIOR YEAR BASE: +13.0% growth Two-pot retirement reform R48.5bn +10.7% 2-Year CAGR (excl. M&A & PlusB) H1FY25 CGM FAE FS IMP H1FY26 10
Slide 11: Revenue – Retail platform growth
REVENUE RETAIL PLATFORM GROWTH +5.1% excl. M&A +7.2% excl. M&A +14.4% +11.6% +11.2% Sales growth +3% excl. M&A +8.0% excl. M&A 2-YR CAGR 83% +9% CASH SALES MIX +3.6% +23% LFL sales growth 17% CREDIT +5.7% LFL +21% 2-YR CAGR excl. M&A CGM FAE 11
Slide 12: Revenue – Clothing & general merchandise
REVENUE 72% of group revenue RETAIL PLATFORM – CLOTHING & GENERAL MERCHANDISE +7.2% +10.3% excl. M&A excl. M&A +3% +23% +11.6% excl. M&A excl. M&A +48.9% R39.2bn +8% +24% +1.5% +11.4% CASH CREDIT 12% 26% 3% 82% 18% R35.2bn +19.7% 7% REVENUE 3% +31.2% SALES MIX SPLIT 49% +6.6% H1FY25 H1FY26 12
Slide 13: Revenue – Furniture, appliances & electronics
REVENUE 14% of group revenue RETAIL PLATFORM – FURNITURE, APPLIANCES & ELECTRONICS +5.1% +8.0% excl. M&A excl. M&A +4% +11% excl. M&A excl. M&A +14.4% +16.5% TECH + 13 % +21% CASH CREDIT R7.8bn R6.8bn 51% 87% 13% +12.0% excl. M&A +30.0% REVENUE 5% SALES MIX SPLIT +10.5% 44% HOME H1FY25 H1FY26 +1.3%
Slide 14: Revenue – Financial services and informal market platform
REVENUE 5% of group revenue REVENUE 9% of group revenue FINANCIAL SERVICES INFORMAL MARKET PLATFORM +38.7% excl. M&A & PlusB +41.6% R3.0bn 1% +10.4% 24% >100% R4.9bn R2.1bn 37% R4.4bn +28.1% 38% +16.0% H1FY25 H1FY26 H1FY25 H1FY26 14
Slide 15: Gross profit margin
GROSS PROFIT MARGIN IMPROVEMENT +170bps Growth in financial 40.8% services 39.1% Improved gross profit margin in Flash +60bps improvement in retail gross profit Higher cellular mix H1FY25 H1FY26 15
Slide 16: CODB
CODB ELEVATED BY INVESTMENT IN M&A AND STRATEGIC INITIATIVES +21.8% Excluding acquisitions & +14.1% 1 opex growth1 investment opex growth +R710m 28.9% R6.2bn +19.9% 26.6% salary cost in total +9.3% Excluding other strategic +9.5% normalised investments opex growth1 +R586m R2.8bn +11.7% ● Distributio
Slide 17: Banking – build phase costs on track
BANKING BUILD PHASE COSTS ON TRACK FY25 H1FY26 H2FY27 Launch Cumulative R55m R315m build cost Opex R55m R76m <R1bn total build cost Capex R224m R15m Other 17 Excludes depreciation and amortisation
Slide 18: Operating profit
OPERATING PROFIT DOUBLE-DIGIT GROWTH – NORMALISED +10.0% excl. M&A & PlusB +70.0% +9.4% excl. M&A & PlusB +23.5% R6 331m +0.8% excl. M&A +63.4% +2.5% excl. M&A +1.0% +3.6% R5 789m +5.1% +0.3% excl. credit book excl. credit book H1FY25 CGM FAE FS IMP H1FY26 18
Slide 19: Group insurance performance
GROUP INSURANCE PERFORMANCE DOUBLING CONTRIBUTION Revenue | >100% Contribution | >100% Statutory Abacus revenue & operating profit Group contribution R366m R718m R121m R29m R245m sales support to R176m retail platform R106m R261m R70m H1FY25 H1FY26 H1FY25 H1FY26 19
Slide 20: Group cellular performance
GROUP CELLULAR PERFORMANCE SELLING 8 OUT OF 10 PREPAID HANDSETS IN SOUTH AFRICA Revenue | +8.0% Operating profit | +21.4% Cellular revenue & operating profit revenue & operating profit R14.8bn R1.1bn +16.0% R13.7bn 11.5% 10.2% margin R1.0bn R13.7bn +7.9% margin R12.7bn +13.4% R1.7bn ongoing revenue R0.
Slide 21: Retail credit books
RETAIL CREDIT BOOKS 17% of group credit sales ENABLING SALES 11.0 9.2 8.0 2.9 Gross book size (Rbn) 2.2 2.2 1.1 0.9 0.9 H1FY25 FY25 H1FY26 H1FY25 FY25 H1FY26 H1FY25 FY25 H1FY26 31.8% 30.2% 29.5% Provision levels % 19.4% 18.8% 18.5% 23.9% 18.5% 20.5% 21.2% 17.3% 16.7% 15.6% 14.0% NPL % 13.1% 11.6% 10
Slide 22: Other books
OTHER BOOKS UNSECURED LENDING CREDIT BOOK CELLULAR RENTAL BOOK 5.3 25.2% 25.0% 4.6 22.9% 4.0 16.9% 17.4% 17.0% 2.6 1.9 1.7 14.2% 11.3% 10.9% 8.0% 8.6% 9.3% H1FY25 FY25 H1FY26 H1FY25 FY25 H1FY26 H1FY25 FY25 H1FY26 H1FY25 FY25 H1FY26 Gross book size (Rbn) Provision level % Gross book size (Rbn) Provis
Slide 23: Debtors' costs
DEBTORS’ COSTS MODERATING GROWTH +26.2% R2.5bn +67.3% R0.2bn R2.3bn -65.5% provision movement Credit granting R2.3bn moderating R2.0bn +54.3% bad debts R0.5bn 34% +47% R1.5bn 29% +82% 23% >100% 14% Other +5% H1FY25 H1FY26 23
Slide 24: Net debt
NET DEBT ELEVATED WITH SUFFICIENT HEADROOM NET DEBT-TO-EBITDA (TIMES) 3 Debt covenant R14.9bn 2 1.22x R11.3bn 1 R10.3bn Target range R8.9bn 0 FY18 FY20 FY22 FY24 H1FY26 ● Non-structural increase outside targeted range ● Normalisation expected in H2FY26 – excl. any future M&A activity 7.25 times EBIT
Slide 25: R4.1bn cash generated
R4.1BN CASH GENERATED NOTWITHSTANDING STRATEGIC INVESTMENTS 516 2 713 3 449 9 015 1 171 +15.1% 1 405 1 052 4 135 68% cash conversion2 79% excl. FoneYam2 EBITDA1 Non-cash Inventory Retail Handset Lending Trade Cash adjustments credit rental payables generated Rm & other by operations 1 EBITDA before
Slide 26: Capital allocation
CAPITAL ALLOCATION INVESTING IN SUSTAINABLE GROWTH M&A TRANSACTIONS IMPLEMENTED OTHER M&A OPPORTUNITIES: Purchase SA component consideration R306m Oct 2025 (non-RSA) R564m net of creditors Purchase Informal CloudBadger System platform & team consideration market International Oct 2025 R224m platform
Slide 27: Financial model
FINANCIAL MODEL PERFORMANCE IN LINE H1FY26 Future 3YR model Revenue +13.2% +10.7% 2YR CAGR excl M&A Double-digit Retail Platform LFL +3.6% +5.7% 2YR CAGR 5% to 6% Space +12.9% 3% to 4% Financial Services +41.6% >20% Informal Market Platform +10.4% 7% to 10% Gross profit margin 40.8% 39% to 41% Operat
Slide 28: Sean Cardinaal, Chief operating officer
. . . it’s in our DNA SEAN CARDINAAL Chief operating officer
Slide 29: Strategic model
STRATEGIC MODEL Categories Segments Scale Data & Tech Customer Execution Monetisation People needs Channels Geographies 29
Slide 30: How we think about growth
HOW WE THINK ABOUT GROWTH 1 2 3 4 FINSERV & LEVERAGE & RETAIL OMNICHANNEL CONNECTIVITY EFFICIENCY PLATFORM Categories Retail credit Logistics Physical Segments Insurance Sourcing Digital Geographies Cellular Data & Tech Informal Banking People BUSINESS AS USUAL + ORGANIC GROWTH + M&A 30
Slide 31: Retail platform – H1FY26 performance summary
RETAIL PLATFORM H1FY26 PERFORMANCE SUMMARY Group +11.2% sales growth +5.8% sales growth excl. M&A +3.6% LFL sales growth +5.7% LFL sales growth – 2-YR CAGR Southern Africa International +2.9% LFL growth +6.2% 2-YR CAGR +9.9%** LFL growth Market share gains* M&A integration +10.3% LFL in Brazil** +30
Slide 32: Retail platform – PEP strategic initiatives
RETAIL PLATFORM STRATEGIC INITIATIVES 2 725 stores +38 Online + School +4.3% LFL sales growth +8.0% 2-YR CAGR 30k online orders Market share gains in Babies, Kids, Adult, Home 460m hashtags 13% credit sales mix PLATFORM ENABLEMENT 4.9m cellular handsets sold +750k cellular rentals 3.9m parcels 1.6m
Slide 33: Entering the off-price market segment
RETAIL PLATFORM ENTERING THE OFF-PRICE MARKET SEGMENT 118 stores +15 +14 NEW stores opened in 1 day LFL sales +6.2% New ERP & DC implemented 300+ store potential 33
Slide 34: Retail platform – Ackermans strategic initiatives
RETAIL PLATFORM STRATEGIC INITIATIVES 1 045 stores +18 Beauty Men in 400 stores in 80 stores -0.5% LFL sales growth +4.4% 2-YR CAGR expansion to 250 stores Market share gains in School, Footwear, Beauty 25% credit sales mix +72% online sales growth PLATFORM ENABLEMENT 1.6m cellular handsets sold +53
Slide 35: Retail platform – Speciality organic strategic initiatives
RETAIL PLATFORM ORGANIC STRATEGIC INITIATIVES CONTEMPORARY FASHION 1 348 stores +34 organic +5.1% LFL sales growth +5.0% 2-YR CAGR 2.0 Market share gains in Adult & Kids +23% 7 stores 33 stores LFL sales launched 17% credit sales mix growth +81% online sales growth PLATFORM ENABLEMENT 225k cellular
Slide 36: Retail platform – M&A strategic initiatives
RETAIL PLATFORM M&A STRATEGIC INITIATIVES VALUE-CREATION LEVERS Value fashion Systems onboarded Retail credit interoperability Acquisition implemented introduced Properties processes integrated >300bps womenswear market share ● 3 conversions to Legit women sales +13% ● 3 conversions to 36
Slide 37: Retail platform – Lifestyle strategic initiatives
RETAIL PLATFORM Top STRATEGIC INITIATIVES performers 1 001 stores +19 organic Beds Automate Jet Park facility Large appliances +3.6% LFL sales growth +5.7% 2-YR CAGR Televisions Darkstore capability onboarded 13% credit sales mix Skooch courier launched added +20% online sales growth (+25% in Tech)
Slide 38: Retail platform – M&A strategic initiatives
RETAIL PLATFORM M&A STRATEGIC INITIATIVES VALUE-CREATION LEVERS Acquisition implemented IT infrastructure conversion & replatforming Credit book onboarded Non-RSA component Insurance cell integrated 67 stores SA component delayed 38
Slide 39: Retail platform – PEP Africa
RETAIL PLATFORM 221 stores +1 +9.3% LFL +15.2% 2-YR CAGR >400bps GP margin expansion 250k handsets sold Sales performance in constant currency 39
Slide 40: Retail platform – Avenida
RETAIL PLATFORM 199 stores +4 Improvement in merchandise +10.3% LFL +4.1% 2-YR CAGR +18.8% LFL in babies & kids 45% credit sales mix +8.8% +10.4% +10.2% +9.8% LFL in women +34.5% KVI products +2.2% >200bps GP improvement -0.3% -2.7% Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 LFL sales growth Sales pe
Slide 41: Garth Napier, Chief commercial officer
. . . it’s in our DNA GARTH NAPIER Chief commercial officer
Slide 42: Cellular rental
FINANCIAL SERVICES & CONNECTIVITY CELLULAR RENTAL Expanded range Available in 3 900 stores Launched in Dunns +206 stores 18% share of handsets sold +1.3m 52% of Samsung handsets sold 37% take-up rate of 2nd contract >2m +994k H1FY25 H1FY26 active customers +53% Activations 42
Slide 43: Retail credit
FINANCIAL SERVICES & CONNECTIVITY RETAIL CREDIT +838k 4.0m new accounts active added accounts +30k new accounts added +63k accounts acquired 296k active accounts R2.5bn cross-shop sales Successful onboarding of non-RSA book 22% 43% 51% 43
Slide 44: Lending
FINANCIAL SERVICES & CONNECTIVITY LENDING 6-12-24 MONTH NEW LOAN ACTIVATIONS 378 000 active loans (+11%) +32% new loan disbursements +11% re-loan disbursements 22% 6 months 12 months 24 months 16% 62% 44
Slide 45: Insurance
FINANCIAL SERVICES & CONNECTIVITY INSURANCE R718m insurance revenue >100% Embedded 3.9m parcels covered 1.3m new cellular devices covered Bundled 665k credit insurance policies R8.5bn credit life cover R2.3bn goods cover Funeral 1.3m lives covered +100% R31.4bn cover 45
Slide 46: Informal market platform
INFORMAL MARKET PLATFORM TRADER BUSINESS AGGREGATION 176 000 traders +59.2% turnover R15.5bn 79k acquiring devices +25% 85 active partners R13bn tapped value +28% CELLULAR VOUCHER / CONSUMER +8.3% ongoing revenue 232m redemptions +31% 19.3m SIMs distributed +27% +51% turnover R16.9bn 3.1m active SIM
Slide 47: Pieter Erasmus, Chief executive officer
. . . it’s in our DNA PIETER ERASMUS Chief executive officer
Slide 48: Outlook
OUTLOOK POST PERIOD STRATEGIC PRIORITIES FY26 TRADE 8 weeks ended Retail Platform Financial Services Informal Market 16 May 2026 Platform +3.7% LFL sales +200 new stores Expand High growth Categories Insurance momentum +10.8% LFL prior period base Segments Cellular rental Expand Geographies Banking
Slide 49: Thank you
__ it's inour DNA PEPKOR Thank ou
Slide 50: . . . it’s in our DNA
__ it's inour DNA PEPKOR Holdings Limited
Slide 51: Annexure
__ it's inour DNA PEPKOR Holdings Limited Annexure
Slide 52: Cash vs credit sales mix
CASH VS CREDIT SALES MIX 13% 25% 100% 17% 45% 13% 17% 87% 87% 83% 83% 75% 55% Credit Cash PEP Ackermans PEP Speciality Avenida Lifestyle Pepkor Africa group 52
Slide 53: Retail store footprint
RETAIL STORE FOOTPRINT CONTINUING OPERATIONS 30 September 2025 Openings Closures Net movement 31 March 2026 Retail Retail area Retail area Retail area stores ‘000 m2 Retail stores Retail stores Retail stores ‘000 m2 Retail stores ‘000 m2 Clothing and general merchandise 5 120 1 964 584 (48) 536 186
Slide 54: Normalised HEPS
NORMALISED HEPS CONTINUING OPERATIONS Cents +12.1% +12.7% +10.3% 1.5 +19.2% 94.6 93.1 84.4 74.9 70.8 H1FY24 H1FY24 normalised H1FY25 H1FY26 Acquisitions & H1FY26 statutory Effective tax rate statutory statutory investment in Normalised normalisation PlusB 54 Restated for discontinued operations
Slide 55: Net debt repayment profile
NET DEBT REPAYMENT PROFILE 31 MARCH 2026 – Rbn FY26 FY27 FY28 FY29 FY30 FY31 -0.8 -1.2 -2.3 R4.3bn new funding raised -3.5 R1.1bn funding replaced -5.2 -5.2 -5.4 -5.4 55