Foschini Group Limited · JSE:TFG
Foschini — The Foschini Group Limited (TFG) — Investor Day (August 2025)
35 slides from Foschini's investor day presentation, Aug 7, 2025
Slide 1: TFG CMD CEO Presentation
TFG CMD CEO Presentation August 7, 2025 1
Slide 2: Building from a position of strength
Building from a position of strength Mindful of headwinds We’re not starting from zero Much of the heavy lifting is done Despite challenges, we’re ahead Although the landscape remains complex Our strategy is working We’ll show you how – with data and realism Our international businesses add strength
Slide 3: Resilience and reinvention in action
Resilience and reinvention in action – building a platform-led, inclusive and scalable retail group in Africa FY21 FY22 FY23 FY24 FY25 COVID-19 LOADSHEDDING RIOTING FLOODING GNU UNCERTAINTY Strategic expansion Jet Tymebank Tapestry JD franchise Innovation & ventures MVNO Beauty Digital & demand-led
Slide 4: Growth against the grain
Growth against the grain Despite macro headwinds, structural trends remain in our favour SA GDP growth ~1% SA i-rates elevated at 10.75% UK consumer confidence -18 BUT BUT BUT Informal economy is Rates cuts Nominal wage growth and large and untapped expected to follow low unemployment SA unemploymen
Slide 5: Global shifts shaping fashion retail
Inventory Health, wellbeing Excellence & self-care Sourcing Never missing Global shifts shifts a sale shaping Shift to Digital fashion retail value acceleration TFG CMD August 2025 5
Slide 6: Inventory excellence
Inventory turnover versus profit margin Select publicly traded fashion brands, 2011 - 2023 STRATEGIC INSIGHT EBIT margin % 01 Inventory excellence Brands that better manage their inventories are more profitable Source: The State of Fashion 2025 | BOF/ McKinsey & Co Inventory turnover TFG CMD August
Slide 7: Inventory excellence: our response
1 2 01 Inventory excellence Upgrading planning Leveraging owned systems to: → DRIVES → manufacturing: ↑ stock turns QR expanded ⟷ ↓ markdowns MA ↑ Furniture production ↯ ING N NU OUR RESPONSE: PLAN FAC 3 powerful shifts underway to TURING unlock inventory-led margin ← DE W← growth and ROCE expansion
Slide 8: Sourcing shifts
STRATEGIC INSIGHT 02 Sourcing shifts China has lost labour cost competitiveness Source: The Economist/ Haver Analytics TFG CMD August 2025 8
Slide 9: Sourcing shifts
STRATEGIC INSIGHT Apparel and textile manufacturing foreign direct investments % of total 02 Sourcing shifts US Farshoring Nearshoring Europe Globally, nearshoring is expected to continue to 2030 49 41 37 17 2015-2019 2020-2024 2015-2019 2020-2024 Source: The State of Fashion 2025 | BOF/ McKinsey &
Slide 10: Sourcing shifts: our response
02 Sourcing shifts Localisation progress Capabilities New apparel capabilites: OUR RESPONSE: Jewellery 30% • Unique highly styled ladies' fashionwear • New formal menswear and suiting Made here, made fast, Homeware 461% Specialised homeware factories: • Furniture made well. • Home textiles • Soft be
Slide 11: Shift to value
STRATEGIC INSIGHT Change in net income levels per income band 03 Shift to value Index to 2016 levels 2016 = 100 Most South African’s real incomes shrank by 42% in the last 8 years 69% of SA consumers earn less than R10k/ month Source: Debtbusters Debt Index Q4 2024 TFG CMD August 2025 11
Slide 12: Shift to value
STRATEGIC INSIGHT Trade-off behavior in a standard shopping basket % of respondents 03 Shift to value SA consumers are amongst the most price- sensitive globally. As inflation bites, value- for-money becomes non-negotiable Source: McKinsey & Co TFG CMD August 2025 12
Slide 13: The engine of growth is Value
STRATEGIC INSIGHT 03 Shift to value The engine of growth is Value Active customers by brand segment 1 million UPPER MARKET 6,4 million MID TO UPPER MARKET 6,4 million MID MARKET 8,7 million VALUE MARKET Shopper count is not unique as customers shop multiple segments and brands TFG CMD August 2025 13
Slide 14: Shift to value: strategic response
STRATEGIC RESPONSE 03 Shift to value Build out of our Value-stack1 from FY20: R2bn to FY28: R14,7bn Including: • Intensive value-engineering • Back-end vendor consolidation Our unique value pyramid in action: R3499,00 R1699,00 R1399,00 R1099,95 R1199,95 R699,99 R549,99 R399,99 R239,99 R150,00 Jet Ex
Slide 15: Health, wellbeing & self-care
Global wellness industry growth outlook STRATEGIC INSIGHT USD (trillions) 10 04 Health, wellbeing & self-care 9 8 7 Historical CAGR 5.9% 6.3 Projected CAGR 7.3% 9.0 6 5.8 5.4 5.0 Wellness and physical 5 4.6 activity on the rise 4 3 2 1 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Largest well
Slide 16: Health, wellbeing & self-care: strategic response
STRATEGIC RESPONSE 2028 04 Health, wellbeing & self-care By 2028 we will dominate in wellness: • Continued Sports stack expansion o R17,3bn by 2028 Private label share Stand-alone formats In-store departments • Comprehensive beauty strategy o From R1,2bn to R4bn by 2028 Channel expansion
Slide 17: Never missing a sale
STRATEGIC INSIGHT 05 Never missing a sale 35% 37% Say they will just go to a different Say they will buy Lost sales aren’t delayed - that item from an store to buy it they’re displaced online retailer when Not in they get home stock? Source: Proactive Worldwide 17% of US adults would use their mobil
Slide 18: Never missing a sale: our response
VICTORY HAPPENS ON THE FRONTLINE Omni-toolset 05 Never missing a sale Access to full inventory | Omni-devices in 1500+ stores OUR RESPONSE: New motivation engine Doing everything to Store incentives fully deployed | Clear KPIs linked to omni-success empower our front-line for success New operational
Slide 19: Digital acceleration
STRATEGIC INSIGHT Add to cart: E-commerce is booming in SA Forecast to grow 5X faster than the economy 06 Digital acceleration (10.5x v 2.2x) 148 165 177 187 130 113 Toys & Hobby OTC Pharmaceuticals Media Household Essentials Furniture Food Fashion Electronics DIY & Hardware Store Source: Beverages
Slide 20: Digital acceleration
Digital acceleration STRATEGIC RESPONSE 06 TFG CMD August 2025 20
Slide 21: International by design - UK and Australia
International by design - building the next phase of growth in the UK and Australia Disciplined expansion. Diversified earnings. Proven execution. Strategic rationale Operational delivery 1. Financial strength United Kingdom: • 25% of Group EBIT- natural rand hedge • FY25 revenue: R8.8bn • Smart, ac
Slide 22: Taking it further: the evolution of
Taking it further: the evolution of BUILD OUT OPTIMISE LEVERAGE TRANSFORM SUSTAIN TFG CMD August 2025 22
Slide 23: Build out
Build out Build diversified, Over the last 5 years we have scaled through: high-brand- • Adding 1037 stores out equity businesses • Acquiring Jet, Tapestry, White Stuff • Launching the JD partnership, 1. New stores In high growth areas with strong ROIs Sneakerfactory, Inside Story, Galaxy, 2. Revamp
Slide 24: Introducing: TFG's newest brand
Introducing: TFG’s newest brand Compact high impact beauty format 100% exclusive private label range 150 – 200 store build out Gross margins of >50%
Slide 25: Optimise
Optimise Optimise Over the last 5 years we have: • Added 8 manufacturing units our sourcing mix & • Increased local apparel sourcing to 82% supply chain efficiency • Added 4 furniture and homeware factories • Verticalised home categories 1. Increasing local production • Shorter lead times • Allows r
Slide 26: Onshoring our largest commodity: Denim
Onshoring our largest commodity: How? DENIM Latest proven laser technology 20% • Better margins of all apparel sales • Quicker Ave 160 stock days • Cleaner 50% reduction possible 33% in-house denim by FY29 Faster turns, lower risk, ↑ GP TFG CMD August 2025 26
Slide 27: Leverage
Leverage Over the last 5 years we have: Leverage Our customer data, store • Grown Rewards members by 13,5m to 39,9m footprint, talent and product • Increased known turnover to 83,4% enabling assortment • Precision marketing • Hyperpersonalisation 1. Maximise the frequency and basket size of Rewards
Slide 28: The true power of Rewards
The true power Revealed for the first time: of Rewards Rewards members spend +22% spend before spend after R746 R907 v. +6% uplift at other competitors R5,5bn DCF value of our rewards customers’ incremental spend TFG CMD August 2025 28
Slide 29: Transform
Transform Transform Over the last 5 years we have: • Built the best app and online e-commerce into a true omnichannel retailer platform bash and platform player • Scaled our own e-commerce logistics and last-mile delivery capability 1. Maintain and build out our position as the Number 1 South Africa
Slide 30: All stores will be omni-stores
We’re flipping All stores will the switch be omni-stores No more ‘sorry we don’t have it’: • Improves stores densities • Hikes click-n-collect % TFG CMD August 2025 30
Slide 31: Sustain
Sustain Over the last 5 years we have: Sustain • Added 20,000+ jobs and workplace opportunities in our business ourselves and our stakeholders into the future • Recognised as a Top 10 jobs contributor for Y.E.S 1. Fashion that CONNECTS us with our people • Moved from B-BBEE Level 6 to Level 2 and co
Slide 32: Introducing RippleEffect
Introducing RippleEffect fresh water period poverty education TFG CMD August 2025 32
Slide 33: Africa: A one-of-a-kind integrated retail ecosystem
Africa: A one-of-a-kind integrated retail ecosystem 33
Slide 34: The TFG Investment Case – here's what you're buying
The TFG Investment Case – here’s what you’re buying We’re built Outperforming An unmatched for scale the market ecosystem We’re a diversified, resilient Consistent share gains Stores, digital, loyalty and unique platform business and category leadership and credit - connected R45bn in New strategy P
Slide 35: Agenda for the rest of the day
Agenda for the rest of the day Time Agenda item Location/ presenter 09.30 - 10.35 Retail strategy Stuart Baird, Shani Naidoo 10.35 - 10.50 Retail strategy Q&A 10.50 - 11.20 Tea & Coffee break 11.20 - 12.05 Financial performance & outlook Ralph Buddle 12.05 - 12.20 Finance Q&A 12.20 - 12.45 TFG Londo
The Foschini Group Limited (TFG) — Investor Day (August 2025) on 6ix