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Q1 F26 Earnings September 11, 2025
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Forward -Looking Information This presentation contains forward-looking statements which are presented for the purpose of assisting the reader to contextualize the Company’s financial position and understand management’s expectations regarding the Company’s strategic priorities, objectives and plans. These forward-looking statements may not be appropriate for other purposes. Forward-looking statements are identified by words or phrases such as “anticipates”, “expects”, “believes”, “estimates”, “intends”, “could”, “may”, “plans”, “predicts”, “projects”, “will”, “would”, “foresees” and other similar expressions or the negative of these terms. These forward-looking statements include, but are not limited to, the following items: • The Company’s aim to increase total adjusted EPS through net earnings growth and share repurchases, as well as its intention to continue improving sales, gross margin (excluding fuel) and adjusted EBITDA margin, all of which could be impacted by several factors including a prolonged unfavourable macro-economic environment and unforeseen business challenges, as well as the factors identified in the “Risk Management” section of the fiscal 2025 annual MD&A; • The Company’s plans to further grow and enhance the Own Brands portfolio, which may be impacted by future operating costs and customer response; • The Company’s plan to invest $850 million capital in its network in fiscal 2026, including new store expansions and renovations and renovate approximately 20% to 25% of the network, which started in fiscal 2024 and continues through fiscal 2026 may be impacted by cost of materials, availability of contractors, operating results, and other macro-economic impacts; • The Company’s expectation that it will successfully implement the national instance of SAP S/4HANA Enterprise Resource Planning ("ERP") platform, which may be impacted by risks relating to implementation resources and timelines, complexity of integration and data conversion and evolving technology requirements; • The Company’s expectation that it will meet targeted store growth of FreshCo, which may be impacted by customer response, availability of contractors, operating results, and other macro-economic impacts; • The Company’s expectation that it will continue its e-commerce expansion with Voilà and that actions are expected to have a positive impact on Voilà’s financial performance in fiscal 2026 and its ability to gain access to a larger segment of the grocery e-commerce market, which may be impacted by future operating and capital costs, customer response and the performance of its technology provider, Ocado Group plc (“Ocado”); • The Company’s expectation that the Scene+ program will accelerate engagement by focusing on scaling personalization, which may be impacted by customer response, Scene+ app usage and the pace at which personalized offers are rolled out; • The Company's expectation that it will continue to focus on driving efficiency and cost effectiveness initiatives including the ability to successfully pursue other e-commerce cost saving initiatives which could be impacted by supplier relationships, labour relations, successfully implementing operational efficiencies and other macro-economic impacts; • The Company's expectation that Other income plus Share of earnings from investments, at equity will in aggregate, be in a range of $120 million to $140 million in fiscal 2026, which assumes completion of pending real estate transactions by the Company and Share of earnings from investments, at equity being consistent with historical values adjusted for significant transactions and may be impacted by the timing and terms of completion of real estate; • The Company’s expectations regarding the amount and timing of costs relating to the completion of the future CFC, which may be impacted by supply of materials and equipment, construction schedules and capacity of construction contractors; • The Company’s expectation regarding its ability to ensure competitive pricing for customers and pursue long-term growth, which may be impacted by supplier relationships and negotiations and the macro-economic environment; • The Company’s expectation and uncertainty that future imposition of tariffs by the United States and the risk of potential retaliatory tariffs by the Canadian government could create volatility in the Canadian economy, including higher future costs for importing goods potentially contributing to higher inflation if increased costs are passed to Canadian consumers, which may be impacted by the length of time tariffs are imposed, the extent of counter measures imposed by other countries, the changes in consumer behaviour, and the extent of the impacts on the supply chain; and • The Company's plans to purchase for cancellation Class A shares under the NCIB, which may be impacted by market and macro-economic conditions, availability of sellers, changes in laws and regulations, and operating results. Non-GAAP Financial Measures & Financial Metrics There are measures and metrics included in this investor presentation that do not have a standardized meaning under generally accepted accounting principles (“GAAP”) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The Company includes these measures and metrics because it believes certain investors use these measures and metrics as a means of assessing financial performance. In addition, management adjusts measures and metrics, including operating income, EBITDA and net earnings in an effort to provide investors and analysts with a more comparable year-over-year performance metric than the basic measure by excluding certain items. These items may impact the analysis of trends in performance and affect the comparability of the Company's core financial results. By excluding these items, management is not implying they are non-recurring. For a more complete description of Empire’s non-GAAP measures and metrics, please see Empire’s Management’s Discussion and Analysis for the first quarter ended August 2, 2025. Disclaimers
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Q1 F2026 Highlights • EPS and adjusted EPS of $0.91; no adjustments in Q1 F26. – When excluding other income and share of equity earnings in both years, core business EPS grew by 14.3% year over year. – Incentive program expenses (including LTIP, Retirement Arrangements) were higher by $20M y/y and impacted Q1 F26 EPS by ~$0.06. • Prior year EPS and adjusted EPS of $0.86 and $0.90 respectively. Adjustments included: – E-commerce Exclusivity: $9 million, net of taxes – Restructuring: $2 million, net of taxes • Sales of $8,258 million, an increase of 1.5%; primarily driven by positive growth across the business, particularly in Full-Service and FreshCo and the Company's national wholesale distribution network. • Same-store sales – food(1) increased by 1.9%; up 90 bps versus Q1 F25. SSS were impacted by annualizing non-recurring benefits in Q1 F25 including: – A boycott campaign against another competitor last year; – A cyber event faced by another competitor in the West; – A nearly one-month long LCBO strike; all of which drove new customers into our stores. • Gross margin, excluding fuel, increased by 63 bps , primarily due to strong performance in Full-Service banners as a result of disciplined execution and targeted efficiencies in our stores, including initiatives aimed at inventory control and reducing shrink, and better promotional mix control. • Issued 2025 Sustainability Business Report. Outlook / Business Updates The Company’s e-commerce platforms - Voilà (including curbside pickup), IGA.net, ThriftyFoods.com and partnerships with Instacart and Uber Eats generated a combined sales increase of 81% compared to the same quarter in the prior year. The Company’s internal food inflation continued to be below the Consumer Price Index for food purchased from stores and was largely in line with internal food inflation from the quarter ended May 3, 2025 The Company opened two new FreshCo stores in Western Canada during the quarter and one subsequent to the end of the quarter. As at September 10, 2025, FreshCo has 51 stores operating in Western Canada and expects to open an additional four stores in fiscal 2026. The Company is currently implementing a significant transformation of its core business systems by migrating the legacy ERP system to a modern national SAP S/4HANA platform. For fiscal 2026, capital spend is expected to be approximately $850 million, with approximately half of this investment allocated to renovations and new store expansion. During fiscal 2026, the Company intends to repurchase up to $400 million in Class A shares under an NCIB. As of September 10, 2025, the Company has purchased 2,139,401 Class A shares in fiscal 2025 for total consideration of $115 million. During fiscal 2026, the Company expects aggregate pre-tax earnings from Other income plus Share of earnings from investments, at equity to be in the range of $120 to $140 million. Highlights: Q1 -F26 (1) Previously named – same-store sales, excluding fuel.
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Q1 F2026 Financial Summary: Q1 -F26 ($ million, unless otherwise noted) Q1 F26 13 weeks Q1 F25 13 weeks Sales $8,258 $8,137 Same-store sales growth - food(1) 1.9% 1.0% Gross Profit $2,235 $2,126 Gross margin %(2) 27.1% 26.1% Other income plus Share of earnings from investments, at equity $33 $58 Selling and Administrative Costs (3) $1,886 $1,815 Selling and administrative % 22.8% 22.3% Adjusted EBITDA (4) $671 $659 Adjusted EBITDA margin %(4) 8.1% 8.1% Adjusted Earnings per Share – diluted (4) $0.91 $0.90 Free Cash Flow $63 $187 Capital Expenditures $138 $152 (1) Previously named – same-store sales, excluding fuel. (2) Gross margin rate, excluding fuel, improved by 63 basis points versus Q1 F25. (3) Selling and Administrative Costs for Q1 F26 includes Depreciation and Amortization of $289 million (Q1 F25: $276 million). (4) Adjusted Metrics exclude: adjustment for costs incurred to plan and implement strategies to optimize the organization and improve efficiencies, and a one-time charge related to ending the mutual exclusivity agreement with Ocado, all of which occurred in F2025.
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8% to 11% Long Term Average Adjusted EPS Growth + Long-Term Financial Framework Continued Share Repurchases We intend to invest capital in our store network and we are on track with our plan to renovate approximately 20% to 25% of our network which started in fiscal 2024 and continues through fiscal 2026. This capital investment includes important sustainability initiatives such as refrigeration system upgrades and other energy efficiency initiatives. Our focus on digital and data will include continued e- commerce expansion, personalization and loyalty through Scene+, improved space productivity and the continued improvement of promotional optimization. We are currently implementing a significant transformation of our core business systems by migrating the legacy ERP system to a modern national SAP S/4HANA platform. We will continue to focus on driving efficiency and cost effectiveness through initiatives related to sourcing of goods not for resale, supply chain productivity, and the organizational structure. We have implemented several cost savings initiatives in the Voilà business, including pausing the opening of our fourth CFC and ending our mutual exclusivity with Ocado and continue to pursue other cost saving initiatives. Driven by our intention to improve Sales, Gross Margin (excluding fuel), and adjusted EBITDA margin Continued Focus on Stores Enhanced Focus on Digital and Data Efficiency and Cost Optimization
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Improve store layouts, optimize category/product adjacencies, tailoring assortment Space Productivity STORE FOCUSED ENABLER BETTER DATA SHELF PRODUCTIVITY Customer-Centric Better Planograms SALES/SQ.FT. Continued Focus on Stores Continue to pursue expansion by market West: • 51 new FreshCo stores since F18 • Expect to open an additional 4 stores in F2026. Ontario: • >100 FreshCo locations • Additional opportunities in Canada's largest province Discount Expansion 20% –25% of network over between F24 and F26 • Sales and margin uplift • Enhanced store productivity • Store department optimization Renovations (1) Sales growth from F2020 to F2025. 1,250+ new private label SKUs since F20 • Own Brands sales growth of ~35%(1) since F20 • ~600 new SKUs planned from F24 to F26 Own Brands
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Co-owner Personalization at Scale Drive Incrementality >15M Members Scene+ now has over 15 million members Over 5 million new members have joined since Scene+ launched at Empire +5M New Members New Customer Acquisitions Connected Banners to Drive Omni -Channel Strategy Differentiated Experience Enhanced Focus on Digital and Data A differentiated national loyalty platform - driving incremental sales and earnings Scene+ members spend 55%+ more than non- members. 55%+ Higher Spend Data Ownership to Drive Insights Enhanced Customer Loyalty There are over 2,000 Scene+ card swipes every minute >2,000 Card Swipes
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Announced partnerships in Q2 F24: • October 24, 2024 - Launched in Ontario • December 5, 2024 - Expanded to Western Canada • March 11, 2025 - Expanded to Quebec and Atlantic Canada • Grocery rollout completed based on serviceable locations. Enhanced Focus on Digital and Data Superior In -Stock Position Extremely low substitution rate, Differentiated Freshness Best-in-Class Delivery Experience White glove delivery Substantial Assortment 39K SKUs at mature CFCs Key Areas of Focus Omni -Channel Focus Voilà AOV is ~3.8x in-store AOV Omni AOV(1)(2) > Voilà AOV Loyalty & Personalization Increased engagement Ongoing Innovation Ocado Re:Imagined Target: 95% Weekly on-time delivery score ABOVE TARGET Fulfillment rateTarget: 98% ABOVE TARGET Net Promoter Score (NPS) – industry best- in-class Target: 70 NPS ABOVE TARGET (1) AOV is average order value. (2) Omni AOV refers to customers who shop both through Voilà and in-store. E-Commerce Banners covered:
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Strategic Sourcing Supply Chain Drive efficiency and cost effectiveness through various initiatives within goods not for resale, consisting of: • Transportation • Construction • Store Services and Maintenance • Marketing • Information Technology • Drive supply chain productivity and cost effectiveness • Focus on processes/technology to improve cost to serve and improve resiliency • Continue to expand automation capabilities • Enabler for outstanding store service, profitability and sustainable growth Efficiency and Cost Optimization Organization / Other • Turnaround Era (F18 - F23):л Transitioned from a regional to national organizational structure • F24: Implemented strategies to optimize our organization, improve efficiencies and reduce costs, including changes to the leadership team and organizational structure. • F25: Pursued cost savings in the Voilà business by pausing the opening of our fourth CFC and ending our mutual exclusivity with Ocado, amongst other initiatives. • F26: Migrating legacy ERP system to a modern national SAP S/4HANA platform aimed at streamlining financial reporting, procurement and supply chain operations.
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SUPPLIER COLLABORATION 430+ women entrepreneurs supported in fiscal 2024 (across Canada, excluding Quebec). FOOD WASTE ~30M lbs of surplus food donated, gaining recognition from Second Harvest as Canada’s Top Food Rescue Partner for the third consecutive year We are proud to share our progress and some of our stories in our Sustainability Business Report at: www.SobeysSBReport.ca ESG1 Goals: Steady and tangible progress We’re reducing our impacts and taking action on climate change to do OurPart to protect our planet for future generations. Planet CLIMATE ACTION 30.1% reduction in Scope 1 and 2 targets compared to 2019 baseline CLIMATE ACTION Our goal is that 64% of suppliers (by spend) set science-based targets on their Scope 1 and 2 emissions by the end of calendar year 2027. We are over half-way to our target PLASTICS & PACKAGING 13% Achieved a 13% average conversion from single-use plastic to reusable containers through our pilot with Friendlier in Farm Boy’s Southwestern Ontario stores ETHICAL & SUSTAINABLE SOURCING 99% of Own Brands seafood (by weight) is certified sustainable or recommended We’re doing OurPart by delivering sustainable and ethical product choices for our customers. Products ETHICAL & SUSTAINABLE SOURCING 90% of palm oil in Own Brands products is certified sustainable by physical trace and credits (RSPO-certified). We’re focused on growing and empowering a diverse, equitable and inclusive workforce to enable our customers and communities to thrive. People DIVERSITY, EQUITY & INCLUSION 92% of Directors and above set DE&I performance and accountability goals DIVERSITY, EQUITY & INCLUSION Completed verification for the Partnership Accreditation for Indigenous Relations. DIVERSITY, EQUITY & INCLUSION 38% representation of women at the senior leadership level. COMMUNITY INVESTMENT ~$25M donated to support healthy bodies and minds in our communities (~$7M in corporate donations and ~$18M raised) (1) ESG is Environmental, Social and Governance Over 11,000 products from local suppliers and producers.
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Doug Nathanson Chief Development Officer & General Counsel Sandra Pasquini Chief Human Resources Officer Michael Medline President & Chief Executive Officer Julia Knox Chief Technology and Analytics Officer Executive Leadership Team Executive Leadership Team - Link to Biographies Sandra Sanderson Chief Marketing Officer Costa Pefanis Chief Financial Officer Pierre St-Laurent Chief Operating Officer