Slides
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H1 Interim Results PRESENTATION
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TABLE OF CONTENTS 1 2 4 3 Overview Marek Masojada Financial Results David Wayne Q&A Marek Masojada & David Wayne Strategic Outlook Marek Masojada
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1 Overview Marek Masojada
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H1 FY27 Highlights 4Results Presentation H1 FY27 Operational momentum ▪ 24 new stores opened with no closures, taking estate to 600 stores ▪ Healthy LFL implied volume growth in the context of internal selling price deflation ▪ Sustained monthly market share gains* Solid financial result despite challenging environment ▪ Careful management of operational levers to deliver earnings growth ▪ R2.3bn net cash on hand, with all long-term debt repaid Strategic Initiative Advancement ▪ B-Media launched, with successful flagship Nyama Battle series on eTV ▪ Further B-inside supplier on-boarding ▪ Strengthened store opening pipeline ▪ Focus on business efficiencies within the Boxer virtuous circle ▪ Improved B-BBEE Scorecard to Level 5 * Boxer's independent calculations are based on data reported by NielsenIQ through its Retail Index Service for FMCG, for the period week ending 08/03/2026 to week ending 30/08/2026, Modern Trade South Africa. (Copyright© 2026 NielsenIQ.)
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5 +24 new stores H1 FY27: 600 stores 49.93c interim dividend declared Turnover +6.3% LFL +1.4% Profit before tax & capital items +10.6% Trading Profit +8.1% Margin +0.1% to 4.2% R2.3bn net cash R H1 FY27 Achievements Results Presentation H1 FY27
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4.2% 10.1% 3.1% 0.3% -1.2% -2.4%-4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% FY22 FY23 FY24 FY25 FY26 H1 FY27 VHC selling price inflation FY22-FY26 average H1 FY27 turnover growth modest by Boxer standards 6 Turnover growth impacted by unprecedented deflation Internal selling price inflation the lowest in years Turnover growth from new stores holding up Implied like-for-like volume growth remains strong FY25 and FY26 turnover growths based on a pro forma 52 week FY25 12.0% 9.0% 13.9% 10.9% 6.3% 7.7% 3.7% 5.3% 3.7% 1.4% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% H1FY25 H2FY25 H1FY26 H2FY26 H1FY27 Turnover growth LFLgrowth 12.9% 9.3% 5.4% 7.8% 4.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% FY23 FY24 FY25 FY26 H1FY27 New Store Turnover Growth % 6 Implied like-for-like volume growth is like-for-like sales growth less internal selling price inflation 3.3% FY22 – FY26 avg 2.9% -3.0% 4.9% 5.3% 5.7% 3.8% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% FY22 FY23 FY24 FY25 FY26 H1 FY27 Implied like-for-like volume growth Results Presentation H1 FY27 FY25 and FY26 turnover growths based on a pro forma 52 week FY25
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7 H1 FY27 Store Estate Growth ▪ 24 stores opened during H1 FY27 • 9 Superstores opened • 15 liquor stores opened ▪ No store closures ▪ 2 conversions from Pick n Pay supermarkets ▪ 53 net additions over the past 12 months ▪ Continued Liquor store catch-up • 64% of superstores now with liquor stores ▪ Estate doubled over past 6.5 years 198 226 243 279 296 320 338 347 70 86 97 118 150 175 206 221 30 30 28 31 31 30 32 32 298 342 368 428 477 525 576 600 0 100 200 300 400 500 600 700 FY20 FY21 FY22 FY23 FY24 FY25 FY26 H1 FY27 Superstores Liquor Build Total 7Results Presentation H1 FY27 Store estate H1 FY26 FY26 H1 FY27 6m net additions 12m net additions Total stores 547 576 600 24 53 Superstores 327 338 347 9 20 Liquor 189 206 221 15 32 Build 31 32 32 - 1 Liquor as % of Superstores 58% 61% 64%
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8 H1 FY27 Store Opening Seasonality ▪ Net store openings tracking well at interim stage • 24 net openings H1 FY27 • Compares with 12 in H1 FY25 and 22 in H1 FY26 ▪ Openings typically H2 weighted • Particularly pronounced for Superstores ▪ On track to achieve targeted 60 FY27 openings 26 26 12 22 24 34 23 36 29 60 49 48 51 0 10 20 30 40 50 60 70 FY23 FY24 FY25 FY26 FY27 Net new stores added H1 H2 Full year 8Results Presentation H1 FY27 Annual store openings tend to be H2-weighted
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2 Financial Results David Wayne
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TRADING EXPENSES 17.6% of Turnover +0.6% vs. H1 FY26 H1 FY27 Financial Highlights 10 TURNOVER R24.1bn Total: 6.3% LFL: 1.4% TRADING MARGIN 4.2% +0.1% vs. H1 FY26 GP MARGIN 20.7% of Turnover +0.5% vs. H1 FY26 EBITDA R1 749m +8.4% vs. H1 FY26 HEADLINE EARNINGS R565m +9.1% vs. H1 FY26 10Results Presentation H1 FY27
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H1 FY27 Income Statement Overview Key income statement line items: ▪ +8.1% trading profit growth • +8.7% Gross profit growth • +34.7% Other trading income growth • +10.2% Trading expense growth ▪ +34.7% other trading income growth • Driven by B-Inside data insights and B-media launch • Value Added Services growing ahead of turnover ▪ +10.6% PBT before capital items growth • Flat net finance charge ▪ 9.1% Headline earnings growth 111111Results Presentation H1 FY27 Rm H1 FY27 H1 FY26 % growth Turnover 24 094 22 656 6.3% Gross profit 4 978 4 580 8.7% Other trading income 260 193 34.7% Trading expenses (4 232) (3 842) 10.2% Trading profit 1 006 931 8.1% Net finance charges (232) (231) 0.4% PBT before capital items 774 700 10.6% Capital items 3 (20) -115.0% Profit before tax 777 680 14.3% Tax (210) (178) 18.0% Profit after tax 567 502 12.9% Headline earnings 565 518 9.1%
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20.2% -0.2% 0.7% H1 FY26 Value investment Margin mix less extra DC Costs H1 FY27 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% H1 FY27 Gross Profit 12 ▪ Gross Profit margin up net 0.5% despite price investment and increased logistics costs • GM negative: Reduced point-of-sale margin and increased transport costs due to fuel price hikes • GM positive: Margin mix management, economies of scale and improved wastage and shrinkage ▪ Diesel costs • Captured within COGS, but also within trading expenses in the case of bakery ovens, generators and forklifts within stores • H1 FY27 diesel spend of R174m, up 32.4% y-on-y GP Rands and margin % GP margin accretion despite ongoing price investment 20.7% 4 580 4 978 20.2% 20.7% 19.0% 19.5% 20.0% 20.5% 21.0% 21.5% 22.0% - 1 000 2 000 3 000 4 000 5 000 6 000 H1 FY26 H1 FY27 Gross Profit Rm GP % 12Results Presentation H1 FY27
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Rm H1 FY27 % change Trading expenses 4 232 10.2% Employee costs 1 839 9.1% Occupancy 680 7.3% Operations 1 288 12.0% Merchandise & Admin 425 14.2% H1 FY27 Trading Expenses 13 Trading expenses increased by +10.2% • Trading expenses as a % of turnover increased to 17.6%, up from 17.0% ▪ Employee costs +9.1% • Driven by annual remuneration increases and a larger store base ▪ Occupancy +7.3% • Impact of annual rent escalations and security costs offset by lower insurance costs, remaining stable as a % of turnover ▪ Operations +12.0% • Pressure from higher energy costs (diesel and electricity) ▪ Merchandise & Admin +14.2% • Driven by B-media Nyama Battle campaign costs as well as promotional marketing expenses 13Results Presentation H1 FY27
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H1 FY27 Gearing and Net Finance Costs 14 Income Statement ▪ Net finance charge increased 0.4% ▪ Net funding interest increased from R2m net interest expense to R30m net interest income, representing a R32m swing ▪ Lease liability interest up by 14.4%, driven by store roll-out Balance Sheet ▪ R2.3bn net cash on hand vs. R709m March 2026 ▪ Remaining R200m long-term debt paid down in April 2026 ▪ R3.1bn net debt including lease liabilities Net interest paid Gearing * Amounts owed by Pick n Pay relate to outstanding overnight settlements of operational cashflows which result from the sharing of payment system infrastructure 14Results Presentation H1 FY27 Rm H1 FY27 FY26 H1 FY26 C ash 2 029 538 1 430 Long-term bank debt 0 (200) (650) Net amounts owed by Pick n Pay* 282 371 346 Net cash excluding lease liabilities 2 311 709 1 126 Lease liabilities (5 361) (5 271) (4 946) Net debt including lease liabilities (3 050) (4 562) (3 820) Rm H1 FY27 H1 FY26 % change Net funding interest 30 (2) - Lease liabilities (262) (229) 14.4% Total (232) (231) 0.4%
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H1 FY27 Working Capital Unpacked 15 Balance Sheet Working Capital balances Balance Sheet ▪ Inventory • Up 16.0% y-on-y, but up only 2.6% vs. FY26 year-end • Impacted by same factors mentioned at FY26 result • Strategic buy-ins, Tongaat DC stock, new & existing stores ▪ Trade payables • 7.6% y-on-y increase approximately in line with COGS growth ▪ No bona fide trade receivables Cashflow Statement ▪ Working capital liquidity release • R1.3bn H1 FY27 liquidity release to mostly unwind in H2, as per historical seasonal pattern 15Results Presentation H1 FY27 WC typically releases liquidity in H1; absorbs in H2 1.0 0.2 1.0 1.3 -0.6 -0.3 -1.4 0.4 -0.1 -0.4 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 FY24 FY25 FY26 FY27 WC liquidity release/ (absorption) Rbn H1 H2 Full year Rm H1 FY27 H1 FY26 % change Net working capital (1 666) (1 825) -8.7% Inventory 4 380 3 776 16.0% Trade and other receivables 468 454 3.1% Trade and other payables (6 514) (6 055) 7.6%
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H1 FY27 Capital Investment 16 ▪ Total H1 capital investment of R320m • 40% y-on-y reduction vs. H1 FY26 • Primarily driven by non-repeat of R115m Tongaat DC supply chain investment ▪ Store capex of R225m • 29% y-on-y reduction vs. H1 FY26 • Variance primarily driven by project timing and portfolio mix differences ▪ IT & Other Capex: R88m • Supporting the ongoing health and stability of the business 16Results Presentation H1 FY27 371 177 168 143 - 100 200 300 400 500 600 H1 FY26 H1 FY27 Expansion vs. Maintenance Capex (Rm) Expansion Maintenance 31% 69% 45% 55% 539 320 317 225 115 6 107 88 - 100 200 300 400 500 600 H1 FY26 H1 FY27 Store/Supply Chain/IT & Other Capex (Rm) Stores Supply chain IT & other 20% 59% 28% 70% 21% 2% 539 320
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H1 FY27 Free Cash Flow 1717Results Presentation H1 FY27 * Cash flow from operations includes lease payments ** Capex after disposals & net of bridging finance loans to landlords 24 1 289 ( 98) ( 299) ( 85) 2 038 1 207 Cash flow from operations* Interest received (net) Working capital movement Tax paid Capex** Share repurchases FCF after share repurchases — 500 1 000 1 500 2 000 2 500 3 000
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H1 FY27 HEPS Reconciliation 18 ▪ 10.6% profit before tax & capital items growth ▪ 12.9% Profit after tax growth • Effective tax rate +0.8% to 27.0% ▪ 9.1% Headline earnings growth to R565 million • R2 million post-tax capital profits reversed vs. R16 million capital losses in H1 FY26 ▪ 9.2% HEPS growth to 124.83 cents/share ▪ All distorting IPO impacts now behind us • Ongoing costs of being a listed entity and expensing of IPO award now in the base • Long-term debt taken on ahead of IPO repaid • Weighted average shares in issue stabilised 18Results Presentation H1 FY27 Rm H1 FY27 H1 FY26 % change Profit before tax and capital items 774 700 10.6% Profit/ (loss) on capital items 3 (20) Profit before tax 777 680 14.3% Tax (210) (178) 18.0% Profit after tax 567 502 12.9% Headline adjustments (2) 16 Headline earnings 565 518 9.1% WANOS (m) 452.6 453.3 -0.2% Closing shares, net of treasury shares (m) 451.6 452.7 -0.2% HEPS (cents/share) 124.83 114.28 9.2% Effective tax rate 27.0% 26.2%
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Strategic Outlook Marek Masojada 3
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Food inflation within a long-term context 2020Results Presentation H1 FY27 Food & non-alcoholic beverage inflation lowest since 2010 *Source: Statistics South Africa Boxer 3-month moving average VHC internal selling price inflation ▪ July and August 2026 Statistics SA Food and Non-alcoholic beverage CPI at 0.9% and 1.1% ▪ Lowest since June 2010, and well below 16-year average of 6.2% ▪ For Boxer, increased promotional participation also a factor, as we provide increasingly better value to our customers - 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Jan-26 -4.0% -2.0% 0.0% 2.0% 4.0% Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 VHC Inflation %
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290 300 310 320 330 340 350 360 Selling price (Rand) Combo 2025 2026 50 60 70 80 90 100 110Selling price (Rand) Maize 10kg 2025 2026 90 95 100 105 110 115 120 125 Selling price (Rand) Flour 10kg 2025 2026 90 100 110 120 130 140 150 Selling price (Rand) Rice 10kg 2025 2026 Deflationary pressure recently abating across commodity categories 2121Results Presentation H1 FY27 -28% -29% -16% -14% -17% Rice now priced in-line with 12m prior Maize still priced somewhat below 12m prior Flour now priced in-line with 12m prior Boxer Combo priced in-line with 12m prior Note: Graphs are reflective of a sample of key selected commodity items sold within a specific region
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Boxer Virtuous Circle 22 Value for Money High Efficiency Continued Expansion High Volume Innovation ZAR 22Results Presentation H1 FY27
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Continued Expansion: Solidifying the Property Pipeline 2323Results Presentation H1 FY27 Substantial superstore pipeline, with FY28 secured Notes: Pipeline includes superstores only (Build and Liquor formats excluded) Pipeline excludes FY27 H2 new store openings Strengthened pipeline, providing confidence in medium-term store roll-out ▪ Good visibility of future opportunities ▪ Strong level of secured pipeline activity ▪ Ongoing site sourcing supports future growth
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Retail Media • Nyama Battle, Retail Media’s 360 supplier partnership aired on TV from May to August and has successfully delivered 5X Media ROI • New Customer Data Platform (CDP) build initiated in May 2026 and in final stages of delivering specific audience segments • In-store media and shoppertainment roll-out Innovation In the Boxer Virtuous Circle 24 B-Inside • Sign-ups and on-boarding continues • Continuous enhancements being added to the supplier dashboard 24Results Presentation H1 FY27 Benefits & More Rewards Card • c.3 million members to date • Higher basket value continues • Baby Club addition to value proposition
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25 Boxer CEO Succession ▪ Marek Masojada retirement announced • Marek Masojada (61) to retire as CEO at the end of February 2027 - after 33 years at Boxer • Well managed succession plan ▪ Justin Galloway appointment as CEO-designate • Justin Galloway (43) is a Chartered Accountant who has been associated with Boxer for 17 years • 3 years as an external auditor and 14 years as a direct part of the Boxer family since joining in 2012 • Cross-functional Boxer experience ▪ Finance manager (3 years) ▪ Store operations (GM of Punch division for 2 years) ▪ Supply chain (Supply Chain Executive & Supply Chain Group Executive for 9 years) • Member of project team that visited Poland in 2016 & subsequently built the Boxer discount model ▪ Group Executive team continues to lead the business • 9 deeply skilled, experienced and motivated Group Executive team members ▪ The transition plan • Justin steps in as CEO Designate with immediate effect, taking on CEO role in March 2027 • Marek steps down as CEO at that time, but stays with Boxer until November 2027 Results Presentation H1 FY27
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26 FY27 Outlook ▪ Turnover momentum • Anticipate improved H2 FY27 turnover growth ▪ Turnover growth in the first 4 weeks slightly above H1 FY27 ▪ Nov/Dec 2025 base is relatively soft ▪ New store roll-out supports H2 growth from new stores ▪ September 2026 selling price deflation of 2.1% (vs. 2.4% for H1FY27) • Trading visibility is low: macro risks and short-term inflation outlook uncertain ▪ Store targets c.60 (25 superstores & 35 liquor) • 32 net new stores as at end of September 2026 ▪ Capex of R1.1bn (guidance unchanged) ▪ Trading Margin • Diesel price will continue to pressurise gross profit margin & trading expenses • As in H1, will continue to use all levers available to carefully manage margin • Strong track record of managing operations & income statement through disruption 26Results Presentation H1 FY27
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Q & A Marek Masojada & David Wayne 4
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Thank You Never pay more than the BOXER price