Slides
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Presentation of Q2 2026 Results Ásta S. Fjeldsted Magnús Kr. Ingason 29 July 2026
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• Q2 2026 Highlights Q2 2026 Financial Results • Q2 2026 Financial Results Outlook • Outlook
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Consolidated Highlights for Q2 2026 - Performance remained resilient although results were below expectations ISK 34.2 bn. ISK 36.0 bn. ISK 43.6 bn. ISK 46.3 bn. Q2 2023 Q2 2024 Q2 2025 Q2 2026 Sale of goods and services ISK 46.3 bn. +6.4% year-on-year 22.7% 23.8% 25.3% 24.9% Q2 2023 Q2 2024 Q2 2025 Q2 2026 Margin from sale 24.9% -0.4 p.p. year-on-year 53.3% 51.3% 50.7% 52.1% Q2 2023 Q2 2024 Q2 2025 Q2 2026 Salaries/Margin from sale 52.1% +1.4 p.p. year-on-year ISK 2.6 bn. ISK 2.9 bn. ISK 3.9 bn. ISK 3.9 bn. Q2 2023 Q2 2024 Q2 2025 Q2 2026 EBITDA ISK 3.9 bn. -0.8% year-on-year 33.0% 33.9% 35.8% 33.9% Q2 2023 Q2 2024 Q2 2025 Q2 2026 EBITDA/Margin from sale 33.9% -1.9 p.p. year-on-year ISK 2.9 bn. ISK 3.1 bn. ISK 5.2 bn. ISK 0.3 bn. Q2 2023 Q2 2024 Q2 2025 Q2 2026 Cash from operating activities ISK 0.3 mn. -94.5% year-on-year 3 Key Operating Results • Group performance was solid despite margin from fuel sales falling short of expectations. • Sales increased 6.4% year-on-year, with growth across all product categories. • Margin level was 24.9%, down 0.4 p.p. from Q2 2025 • EBITDA was broadly unchanged year-on-year. • Operating cash flow decreased by ISK 4.9 billion year-on-year due to increased working capital tied up in inventories and trade receivables following the rise in global fuel prices. • Underlying business remains strong, but external factors have temporarily affected profitability.
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-0.2% Q2 2025 Q2 2026 Transactions Units sold Increase in Sales – Fewer Transactions, Larger Baskets 4 Digital transactions +3.7% Q2 2025 Q2 2026 -4.3% Q2 2025 Q2 2026 +10.7% Q2 2025 Q2 2026 Fuel litres sold
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Domestic card turnover Foreign card turnover Card Turnover - Domestic Growth, Foreign Decline - Fewer tourist arrivals and reduced fuel levies explain the decline in foreign turnover +5.0% Q2 2025 Q2 2026 -11.0% Q2 2025 Q2 2026 5
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ELKO: Q2 2026 Highlights • ELKO opened its sixth store in Smáralind in June. • Performance has been in line with expectations and the store has already attracted more than 24,000 visits. • ELKO's growth continued while the consumer electronics market declined 4.1% year-on-year. 1 • Online sales accounted for 27.5% of total sales vs. 25.3% in Q2 2025. ELKO Maintains Market Position Opening of ELKO Smáralind • ELKO Grandi will undergo refurbishment this autumn. • Construction will commence in September, with reopening planned before the November promotional season. Refursbishment of ELKO Grandi 61) According market research by Meniga.
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Krónan: Q2 2026 Highlights • Sales increased 52% year-on-year. • Units sold increased 47%. • Transactions increased 43%. • Share of total sales continues to grow. • In-store transactions increased 2.6% year-on-year, unadjusted for the 9-week closure of Krónan Lindir during the quarter, and units sold increased 4.5%. • Adjusted for the closure of Lindir, in-store transactions increased 7.4% and units sold 10.7%. Strong Momentum in Store Activity Strong Momentum in Store Activity • Krónan Lindir reopened following refurbishment on June 11 and has exceeded expectations. • From reopening through July 26, transactions and units sold increased 15% year-on-year, and sales increased 21%. Opening of Krónan Lindir 7
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Lyfja: Q2 2026 Highlights Digital Channels Continue to Grow • Online sales increased by 15% year-on-year. • Strong contribution from the website lyfja.is, where sales increased 56% and June was a record month. Focus on Skincare Delivers Results Lyfja Strengthens Its Market Position • Margin level at Lyfja Heyrn increased 39% year-on- year, while hearing aid unit sales grew by 11%. • Record number of respondents name Lyfja Heyrn as their first choice 2 and customer satisfaction reached 9.2 out of 10. Strong Momentum at Lyfja Heyrn 8 • Increased focus on skincare drove a 10% increase in units sold across the category year-on-year. • Strong customer demand during promotional campaigns and multiple sold-out educational events during the quarter. • Brand awareness reached 98% and Lyfja has the most favourable brand perception in the pharmacy market. 1 • Lyfja‘s NPS increased by 13 p.p quarter-on-quarter and 20 p.p year-on-year. 2 1) According market research by Prósent. 2) According to market research by Gallup.
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N1: Q2 2026 Highlights 9 • Sharp increases in global fuel prices significantly impacted procurement costs. • Cost increases were not fully reflected in retail prices, resulting in margin from fuel sales coming in below expectations. Challenging External Conditions New Tyre Hotel and Service Centre • New full-service facility for tyre services, oil changes and car washes will open at Borgahella this autumn. • One-stop service destination for passenger and commercial vehicles. • Increased capacity and upgraded facilities to meet growing demand. Solid Underlying Performance • Units sold declined 1.6% year-on-year, while service station sales remained stable. • Fuel volumes declined by 4.3%, mainly due to lower B2B sales. • New service station opened at Geysir in early June, replacing the previous location in the area. • Improved access for passenger cars and larger vehicles at one of Iceland's most visited tourist destinations. New Station at Geysir
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• Q2 2026 Highlights Q2 2026 Financial Results • Q2 2026 Financial Results Outlook • Outlook
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Amounts are in ISK million Q2 2026 Q2 2025 Change % Change Sale of goods and services 46,347 43,579 2,768 6.4% Margin from sale of goods and services 11,522 11,008 514 4.7% Lease revenue and operating income 560 569 (9) -1.6% Salaries and personnel expenses (6,002) (5,585) (417) 7.5% Other operating expenses (2,173) (2,055) (118) 5.7% EBITDA 3,908 3,938 (30) -0.8% EBIT 2,420 2,470 (49) -2.0% Profit for the period 1,299 1,419 (120) 8.5% Key Figures EBITDA/Margin from sales 33.9% 35.8% -1.9 p.p. -5.2% Salaries/Margin from sales 52.1% 50.7% +1.4 p.p. 2.7% Earnings per share 4.22 4.55 -0.33 -7.3% Group Operations in Q2 2026 • Sales of goods and services increased by ISK 2.8 billion, or 6.4% year-on-year. Excluding the impact of changes in FX, global fuel prices (GFP) and fuel levies, sales increased by 1.0%. • Margin from sales was ISK 11.5 billion, an increase of ISK 0.5 billion, or 4.7% year-on-year. • Margin level was 24.9%, down 0.4 p.p. year-on- year, but up 0.9 p.p. excluding changes in FX, GFP and fuel levies. • Salaries and personnel expenses amounted to ISK 6.0 billion, an increase of ISK 0.4 billion, or 7.5% year-on-year. • Full-time equivalents were 1,754 during the quarter, an increase of 60, or 3.5% year-on-year. • Other operating expenses increased by ISK 0.1 billion, or 5.7% year-on-year. • EBITDA amounted to ISK 3.9 billion, a decrease of 0.8% year-on-year. • Profit for the quarter amounted to ISK 1.3 billion, a decrease of ISK 120 million year-on-year. 11 33.4% 36.7% 36.0% 35.9% >35% Q2 2023 Q2 2024 Q2 2025¹ Q2 2026 Target 8.7% 11.2% 12.9% 13.1% >12% Q2 2023 Q2 2024 Q2 2025¹ Q2 2026 Target EBITDA/margin (12m underlying) 1 Return on equity (12m underlying) 1 1) Q2 2025 adjusted for ISK 750 million administrative fine recognised in Q4 2024
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ISK 1.1 bn ISK 1.0 bn ISK 1.3 bn ISK 1.3 bn 39.7% 44.2% 44.1% 44.8% Q2 2023 Q2 2024 Q2 2025 Q2 2026 ISK 1.0 bn ISK 1.0 bn 26.6% 25.0% ISK 7.8 bn ISK 8.6 bn ISK 11.0 bn ISK 11.5 bn 22.7% 23.8% 25.3% 24.9% Q2 2023 Q2 2024 Q2 2025 Q2 2026 Margin - ISK Margin - % Margin From Sales in Q2 2026 • Sales increased across all product categories. • Total margin from sales amounted to ISK 11.5 billion, an increase of 4.7% year-on-year. • Margin level was 24.9%, down 0.4 p.p. year-on-year, but up 0.9 p.p. excluding changes in FX, GFP and fuel levies. • Margin level declined in fuel and electricity and prescription and OTC medicines, while improving across other product categories. • Margin from sales increased by 7.8% in groceries, decreased by 2.6% in fuel and electricity, increased by 8.2% in consumer electronics, increased by 2.3% in prescription and OTC medicines, and increased by 3.2% in other goods and services. 12 Grocery and convinience goods ISK 1.6 bn ISK 1.9 bn ISK 2.3 bn ISK 2.2 bn 16.2% 18.9% 22.4% 20.0% Fuel and electricity Electronic equipment Prescription and over the counter medicines Other goods and services ISK 4.0 bn ISK 4.5 bn ISK 5.2 bn ISK 5.6 bn 23.0% 23.5% 23.6% 23.9% ISK 1.1 bn ISK 1.2 bn ISK 1.3 bn ISK 1.4 bn 25.1% 25.8% 26.2% 28.0% Sales margin
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Salaries and other personel expenses Q2 2025 5,585 Change in full-time position equivalents 192 Contractual wage increases 191 Other changes 33 Salaries and other personel expenses Q2 2026 6,002 +417 m. 5,585 m. 6,002 m. Q2 2025 Q2 2026 Salaries and other personel expenses year-on-year comparison +60 1,694 1,754 Q2 2025 Q2 2026 Full time equivalents year-on-year comparison Salaries and other personnel expenses in Q2 2026 • Salaries and personnel expenses amounted to ISK 6.0 billion, an increase of ISK 0.4 billion, or 7.5% year-on-year. • Full-time equivalents increased by 60, or 3.5% year-on-year, primarily reflecting staffing requirements at the new refrigerated warehouse at Bakkinn, Krónan’s online store and the new ELKO store in Smáralind. • Average cost per FTE increased by 3.7% year-on-year. Contractual wage increases amounted to ISK 198 million (3.5% increase effective January 1, 2026). • Excluding the impact of the increase in FTEs, personnel expenses increased by 3.2% year-on-year. 13
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ISK million Q2 2026 Q2 2025 Change % Total revenue 5,003 4,952 51 1.0% Total cost (4,578) (4,524) (54) 1.2% EBITDA 425 428 (3) -0.7% EBITDA-ratio 8.5% 8.6% -0.2 p.p. -1.7% EBIT 238 250 (12) -4.9% EBIT-ratio 4.8% 5.0% -0.3 p.p. -5.8% Profit (loss) 186 174 12 6.8% Equality award Jafnvægisvogin 2025 Electronics stores Happiest customers in the electronics market ELKO – Q2 2026 Operating Results • Revenue amounted to ISK 5.0 billion, an increase of ISK 51 million, or 1.0% year-on-year. • Margin level increased by 0.3 p.p. quarter-on-quarter and by 1.5 p.p. year-on-year. • EBITDA amounted to ISK 425 million, a decrease of ISK 3 million, or 0.7% year-on-year. • Profit amounted to ISK 186 million, an increase of ISK 12 million, or 6.8% year-on-year. 14 6 2 yrs
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ISK million Q2 2026 Q2 2025 Change % Total revenue 21,690 20,061 1,629 8.1% Total cost (20,034) (18,551) (1,482) 8.0% EBITDA 1,656 1,510 146 9.7% EBITDA-ratio 7.6% 7.5% +0.1 p.p. 1.5% EBIT 1,013 902 111 12.3% EBIT-ratio 4.7% 4.5% +0.2 p.p. 3.9% Profit (loss) 727 652 75 11.5% Grocery stores Sustainability ace two times running Happiest customers in the grocery market Krónan – Q2 2026 Operating Results • Revenue amounted to ISK 21.7 billion, an increase of ISK 1.6 billion, or 8.1% year-on-year. • Store count remained unchanged year-on-year, while a larger store opened in Reykjanesbær and additional pickup locations were added to the online store over the past twelve months. • Margin level increased by 0.2 p.p. quarter-on-quarter and by 0.4 p.p. year-on-year. • EBITDA amounted to ISK 1,656 million, an increase of ISK 146 million, or 9.7% year-on-year. • Profit amounted to ISK 727 million, an increase of ISK 75 million, or 11.5% year-on-year. 15 26 9 yrs
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ISK million Q2 2026 Q2 2025 Change % Total revenue 5,290 4,961 328 6.6% Total cost (4,949) (4,570) (379) 8.3% EBITDA 341 392 (51) -13.0% EBITDA-ratio 6.4% 7.9% -1.5 p.p. -18.4% EBIT 69 118 (49) -41.7% EBIT-ratio 1.3% 2.4% -1.1 p.p. -45.3% Profit (loss) 37 65 (28) -42.7% Equality award Jafnvægisvogin 2025 Pharmacies and outlets Strongest in Iceland 2025 Lyfja – Q2 2026 Operating Results • Revenue amounted to ISK 5.3 billion, an increase of ISK 328 million, or 6.6% year-on-year.. • Margin level decreased by 1.1 p.p. year-on-year but increased by 0.2 p.p. quarter-on-quarter. • EBITDA amounted to ISK 341 million, a decrease of ISK 51 million, or 13.0% year-on-year. • Profit amounted to ISK 37 million, a decrease of ISK 28 million year-on-year. 16 42
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ISK million Q2 2026 Q2 2025 Change % Total revenue 15,466 14,514 952 6.6% Total cost (13,866) (12,849) (1,017) 7.9% EBITDA 1,600 1,665 (66) -3.9% EBITDA-ratio 10.3% 11.5% -1.1 p.p. -9.8% EBIT 783 832 (49) -5.8% EBIT-ratio 5.1% 5.7% -0.7 p.p. -11.6% Profit (loss) 402 528 (127) -24.0% Fuel dispenser locations Tire and oil service stations EV charging locations N1 – Q2 2026 Operating Results • Revenue amounted to ISK 15.5 billion, an increase of ISK 1.0 billion year-on-year. • Sales of fuel and electricity increased by ISK 0.9 billion, or 9.0% year-on-year, while fuel volumes declined by 4.3%. • Margin level decreased by 1.6 p.p. year-on-year. Excluding the impact of GFP and FX, margin level increased by 2.5 p.p. • EBITDA amounted to ISK 1.6 billion, a decrease of ISK 66 million, or 3.9% year-on-year. • Profit amounted to ISK 402 million, a decrease of ISK 127 million year-on-year. 17 161194
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ISK million Q2 2026 Q2 2025 Change % Total revenue 1,211 1,119 92 8.2% Total cost (251) (231) (21) 8.9% EBITDA 960 889 71 8.0% EBITDA-ratio 79.3% 79.4% -0.1 p.p. -0.2% EBIT 469 442 27 6.2% EBIT-ratio 38.8% 39.5% -0.7 p.p. -1.9% Profit (loss) 29 31 (2) -7.7% Properties owned by Group Properties rented out Own use of properties Yrkir – Q2 2026 Operating Results • Revenue amounted to ISK 1.2 billion, an increase of ISK 92 million, or 8.2% year-on-year. • Net operating income (NOI) amounted to ISK 1,016 million, up 6.9% year-on-year from ISK 951 million in Q2 2025. • EBITDA amounted to ISK 960 million, an increase of 8.0% year-on-year. • Fair value gain amounted to ISK 61 million, a decrease of ISK 21 million year-on-year • Profit amounted to ISK 29 million, a decrease of ISK 2 million year-on-year. 18 99% 84 90%
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Balance sheet expanded by ISK 0.6 billion over H1-26. • Capex amounted to ISK 3.2 billion during the period. • Higher global fuel prices increased working capital requirements. Inventories increased by ISK 3.3 billion and trade receivables by ISK 1.1 billion. • Dividends paid amounted to ISK 2.2 billion. • Undrawn credit facilities of ISK 4.0 billion at period-end Net interest-bearing debt/EBITDA (12m underlying) 1 Balance Sheet as of 30.06.2026 19 Amounts are in ISK million 30.6.2026 31.12.2025 Change % Operating assets 44,385 43,655 730 1.7% Intangible assets 25,811 26,026 (215) -0.8% Other non-current assets 19,698 19,415 283 1.5% Non-current assets 89,895 89,096 799 0.9% Inventories 17,457 14,179 3,278 23.1% Trade- and short-term receivables 7,695 6,557 1,138 17.4% Cash and cash equivalents 1,313 5,929 (4,616) -77.8% Current assets 26,465 26,665 (200) -0.7% Total assets 116,360 115,761 599 0.5% Equity 46,789 47,684 (895) -1.9% Interest bearing debt 23,166 24,016 (850) -3.5% Lease liabilities 9,897 10,029 (132) -1.3% Deferred tax liabilities 7,944 7,620 324 4.3% Non-current liabilities 41,008 41,666 (658) -1.6% Payable to credit institutions 5,892 3,393 2,499 73.7% Interest bearing debt 1,572 1,438 135 9.4% Trade- and short-term liabilities 21,099 21,581 (482) -2.2% Current liabilities 28,563 26,411 2,152 8.1% Total equity and liabilities 116,360 115,761 599 0.5% 35.5% 37.2% 37.7% 40.2% 35-40% Q2 2023 Q2 2024 Q2 2025 Q2 2026 Target 3.8 2.8 2.5 2.4 <3,5 Q2 2023 Q2 2024 Q2 2025¹ Q2 2026 Target Equity ratio 1) Q2 2025 adjusted for ISK 750 million administrative fine recognised in Q4 2024
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Cash Flow Statement for Q2 2026 Cash flow remained affected by one-off items • Higher fuel prices and reduction in VAT rate on fuel increased working capital tied up in inventories and trade receivables by ISK 3.5 billion. • Trade payables and removal of fuel levies explain approximately ISK 1.0bn of the year-on-year change • Dividends of ISK 2.2bn paid to shareholders; ISK 1.0bn share buyback programme launched on July 1. • Loan repayments of ISK 0.6bn; new short-term loan of ISK 1.0bn; cash at the end of the period was ISK 1.3 bn. 20 ISK millions Q2 2026 Q2 2025 Change % Cash at the beginning of the period 4,220 5,029 (808) -16.1% EBITDA 3,908 3,938 (30) -0.8% Changes in oparating items (2,829) 2,105 (4,933) -234.4% Interest and taxes (792) (837) 45 -5.4% Cash flows from operating activities 287 5,205 (4,918) -94.5% Investments (1,854) (2,172) 319 -14.7% Other investing activities 484 407 77 19.0% Investing activities (1,370) (1,766) 396 -22.4% Transactions with shareholders (2,151) (1,401) (751) 53.6% Transactions with credit institutions 409 (1,784) 2,193 122.9% Other financing activities (96) (168) 72 -42.7% Financing activities (1,839) (3,353) 1,514 -45.2% FX difference on cash 15 27 (12) -45.0% Cash at the end of the period 1,313 5,142 (3,829) -74.5% 50.1% 26.3% 60.1% 43.7% >50% 2023 2024 2025 6M 2026 Target Transactions with shareholders/last year profit
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• Q2 2026 Highlights Q2 2026 Financial Results • Q2 2026 Financial Results Outlook • Outlook
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Discussion Outlook for the business remains positive despite continued economic and geopolitical uncertainty. Krónan continues to perform strongly and is expected to deliver robust, profitable growth. ELKO and Lyfja are maintaining solid momentum, while N1 is expected to remain affected by elevated and volatile fuel prices. Key initiatives ahead include the opening of a new Lyfja pharmacy at Vellir in Hafnarfjörður, a new Krónan store in Höfn and the continued development of N1's foodservice offering. Financial position remains robust despite the temporary impact on cash flow from increased working capital tied up in inventories and trade receivables. Underlying business remains strong, with significant opportunities to further enhance earnings and profitability. Outlook for 2026 EBITDA & CAPEX Guidance for the Year EBITDA guidance for 2026 has been lowered by ISK 500 million to ISK 16.0 – 16.5 billion. CAPEX guidance for 2026 remains unchanged at ISK 7.5 – 8.0 billion. Key Assumptions • Continued tensions in the Middle East have created significant uncertainty. • Fuel prices have increased significantly due to concerns over supply chain disruptions. • Inflation in Iceland has increased and, if it remains at current levels through year- end, is expected to put further pressure on operating costs. • Interest rates are now expected to increase during the second half of the year. • The Icelandic króna is expected to remain strong in real terms through year- end. 22
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Shareholders (10 largest) % Lífeyrissjóður verzlunarmanna 16.0 Lífeyrissj.starfsm.rík. A-deild 10.4 Gildi - lífeyrissjóður 9.5 Brú Lífeyrissjóður starfs sveit 9.1 Almenni-Lífsverk lífeyrissjóður 6.9 Stapi lífeyrissjóður 4.2 Birta lífeyrissjóður 4.1 Frjálsi lífeyrissjóðurinn 3.7 Söfnunarsjóður lífeyrisréttinda 2.8 Festa - lífeyrissjóður 2.1 +33.5% 13.1 14.4 13.1 13.3 14.6 16.0 20.0 19.9 19.5 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2024 2025 2026 125 kr 175 kr 225 kr 275 kr 325 kr 375 kr 0 m. 2,000 m. 4,000 m. 6,000 m. 8,000 m. 10,000 m. 12,000 m. 14,000 m. 30.6.2024 30.9.2024 31.12.2024 31.3.2025 30.6.2025 30.9.2025 31.12.2025 31.3.2026 30.6.2026 Total volume (L. axis) Closing price (R. axis) Market Information Share price development on Nasdaq OMX Basic earnings per share rolling 12 months (ISK per share) Market information 30.6.2026 31.12.2025 Change Issued shares 309 m. 309 m. -0.1% Price at the end of the period ISK 311 ISK 324 -4.0% Market cap ISK 96,058 M ISK 100,161 M -4.1% Turnover 12m ISK 45,720 M ISK 55,325 M -17.4% Number of shareholders 2,073 1,729 19.9% Basic earnings per share (12M) 19.5 20.0 -2.3% 23
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Thank you •
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All information in this presentation is based on sources which Festi hf. considers reliable at the time of publication, but it cannot be guaranteed that the information is infallible. All information in this presentation is owned by Festi hf. It is not permitted to copy, change or distribute in any way information from this presentation, in part or entirety. This presentation is only intended for information purposes and is not part of, or a basis for, any decisions made by the recipient. Recipients should not interpret information in this presentation as a promise or as instructions. Festi hf. is not obliged to provide recipients of this presentation with further information about the company or to make changes or corrections to the presentation if information upon which it is based changes. The company’s future outlook is dependent on a number of risks and uncertainties which may have the effect that the actual result in the future is considerably different to the scenario described in this presentation. This includes factors such as exchange rates, the global price of fuel, the availability of funding, new legislation coming into effect and the impact of regulators, etc. Festi hf. wishes to point out that recipients of the presentation should not rely on statements contained within in the future since they are only applicable on the date of publication of the presentation. All statements concerning the company’s future prospects are entirely valid with respect to this disclaimer. By receiving this presentation, the recipient agrees that they are bound by the above provisos and limitations. Disclaimers