Slides
Page 1
1 Sean SummersIntroduction Results Overview CEO Update Tina Rookledge Sean Summers H1 FY27 Results 26 weeks ended 30 August 2026
Page 2
2 INTRODUCTION – STEADY PROGRESS ON OUR TURNAROUND • Progress on Pick n Pay turnaround initiatives with tangible signs that our strategy and plans are delivering • Pleased with the narrowing of both Group and Pick n Pay losses – more work to do • Customers choosing us more – positive like-for-like volume growth across PnP SA supermarkets, despite consumer pressures and a severely constraint market • Solid Boxer performance – 600th store opened, with profit before tax increased on last year • Strong balance sheet with R10bn net cash, supporting our path to FY29 break-even
Page 3
3 Sean SummersIntroduction Results Overview CEO Update Tina Rookledge Sean Summers H1 FY27 Results 26 weeks ended 30 August 2026
Page 4
4 GROUP KEY METRICS * EBITDA (pre-IFRS 16): Refer to Appendix of Group interim financial statements Turnover GP margin Trading expenses Trading profit EBITDA* Headline loss Net cash R60.5bn +2.4% (LfL 1.8%) 18.8% +70bps R0.5bn improved R0.2bn R0.4bn improved R0.2bn -R0.3bn improved 31.9% R10.0bn up R6.9bn on FY26 Loss before tax & capital items -R0.1bn improved R0.2bn 4.5% growth
Page 5
5 • Turnover growth impacted by constrained consumer spending and low inflation • PnP SA internal selling price inflation of 1.5%, below CPI food inflation of 2.0% • Company-owned supermarkets • 0.9% LfL volume growth • Focus remains on driving LfL sales growth • Store estate reset plan concluded • Omnichannel turnover +35.4% • asap! innovations driving sales momentum • PnP Clothing +3.9% (LfL -0.7%) GROUP TURNOVER BY SEGMENT * Like-for-like: Refer to Appendix of Group interim financial statements Turnover (Rbn) H1 FY27 H1 FY26 % change LfL* % change Boxer 24.1 22.7 6.3 1.4 Pick n Pay 36.4 36.4 (0.1) 2.0 South Africa 34.7 34.9 (0.5) 1.4 Rest of Africa 1.7 1.5 10.8 20.2 Group 60.5 59.0 2.4 1.8 PnP SA LfL* sales growth % H1 FY26 H2 FY26 H1 FY27 Company-owned supermarkets 4.8 3.0 2.4 Franchise supermarkets 1.8 (0.2) 1.0 Clothing standalone stores 7.5 (5.6) (0.7)
Page 6
6 • Boxer trading profit grew 8.1% • Trading margin improved 10bps to 4.2% • PnP trading loss reduced by 16.9% to R0.5bn • Gross profit growth exceeded trading expense growth GROUP TRADING PROFIT SEGMENTATION *Lease finance expense less lease finance income. Refer to Appendix of Group interim financial statements Rbn H1 FY27 H1 FY26 Group Pick n Pay Boxer Group Pick n Pay Boxer Turnover 60.5 36.4 24.1 59.0 36.4 22.7 Trading profit/(loss) 0.5 (0.5) 1.0 0.3 (0.6) 0.9 Trading profit/(loss) margin 0.8% (1.4%) 4.2% 0.5% (1.7%) 4.1% Trading result after leases* (0.3) (1.1) 0.7 (0.5) (1.2) 0.7 Trading result after leases margin (0.5%) (3.0%) 3.1% (0.8%) (3.2%) 3.1%
Page 7
TRADING EXPENSES 17.6% of Turnover +0.6% vs. H1 FY26 BOXER FINANCIAL HIGHLIGHTS 7Results Presentation H1 FY27 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
Page 8
8 PICK N PAY KEY METRICS * Trading loss after lease interest (TPAL) and EBITDA (pre-IFRS 16) : Refer to Appendix of Group interim financial statements Turnover GP margin Trading expenses EBITDA* Loss before tax & capital items Net cash R36.4bn -0.1% (LfL 2.0%) 17.5% +70bps 1.7% (LfL 2.0%) -R0.7bn improved R0.1bn -R0.9bn improved R0.1bn R7.7bn increased R5.3bn from FY26 Trading loss after leases* -R1.1bn improved R0.1bn Trading loss -R0.5bn improved R0.1bn
Page 9
9 • Trading loss reduced 16.9% • 3.9% Gross profit growth exceeded 1.7% trading expense growth • Other income growth impacted by • Reduced franchise fee income • Partially offset by increased online delivery fees • LfL expenses +2.0% in line with LfL sales +2.0% PICK N PAY TRADING RESULT OVERVIEW Rbn H1 FY27 H1 FY26 % change Turnover 36.4 36.4 (0.1) Gross profit 6.4 6.1 3.9 Other income 1.2 1.2 0.1 Trading expenses (8.1) (8.0) 1.7 Trading loss (0.5) (0.6) 16.9 Net lease finance expense (0.6) (0.5) 3.1 Trading loss after leases* (1.1) (1.2) 7.6 Gross profit margin % 17.5 16.8 +0.7 Expenses as % of turnover 22.3 21.9 +0.4 Trading loss margin % (1.4) (1.7) +0.3 TPAL* margin % (3.0) (3.2) +0.2 * Trading loss after lease interest (TPAL) : Refer to Appendix of Group interim financial statements
Page 10
10 • PnP GP margin +70bps to 17.5% • PnP South Africa contributing 40bps • Better category and margin management offsets increased diesel spend • PnP Rest of Africa contributing 30bps • Zambia margin improvement • Botswana corporatization • Diesel spend of R426m, up 14.9% y-o-y • Primarily recorded in COGS, also in trading expenses relating to store generators • 22.5% increase in South Africa • Offset by Rest of Africa reduction GROSS PROFIT MARGIN ANALYSIS H1 FY26 Rest of Africa South Africa H1 FY27 Pick n Pay gross profit margin % +70bps 16.8 17.5 Gross profit H1 FY27 Rbn % change Margin % Margin % change Pick n Pay 6.4 3.9 17.5 +70bps Boxer 5.0 8.7 20.7 +50bps Group 11.4 6.0 18.8 +70bps 0.4 0.3
Page 11
11 TRADING EXPENSES Trading expenses (Rbn) H1 FY27 H1 FY26 % change Pick n Pay 8.1 8.0 1.7 Boxer 4.2 3.8 10.2 Group 12.4 11.8 4.5 Pick n Pay trading expenses (Rbn) H1 FY27 % change LfL* % change Employee costs 3.4 2.7 3.0 Occupancy costs 1.0 -0.4 -3.1 Operations costs 2.2 5.0 4.8 Merchandise & admin 1.4 -5.0 -3.0 Expected credit losses 0.1 Total trading expenses 8.1 1.7 2.0 • LfL expenses +2.0% vs. +6.7% for full year FY26 • Employee costs • Support office restructure savings offset above- inflation store wage increases • Occupancy costs • Profit on lease termination R99m (LY R126m) • Excl. termination profits, occupancy costs -2.6% • Renegotiation of some rental agreements • Insurance costs reduced • Operations costs • Increased energy costs (diesel and electricity) • Omnichannel delivery costs increased • Merchandise and admin costs • Cost-effective advertising and promo spend *Like-for-like: Refer to Appendix of Group interim financial statements
Page 12
12 Group Balance sheet • Group net cash at R10.0bn, of which R7.7bn within PnP • 12.5% Boxer sale raised R4.7bn gross cash • Excluding the R4.7bn, PnP net cash +R0.6bn (inclusive of R232m Boxer dividend) NET FINANCE COSTS AND NET CASH Net cash (Rbn) H1 FY27 FY26 H1 FY26 Gross debt (excl. leases) - (0.2) (0.7) Cash & cash equivalents 10.0 3.3 5.7 Group net cash 10.0 3.1 5.0 Pick n Pay net cash 7.7 2.4 3.9 Boxer net cash 2.3 0.7 1.1 Pick n Pay (Rbn) H1 FY27 H1 FY26 % change Net funding interest 0.2 0.1 10.9 Net lease interest (0.6) (0.5) 3.1 Net finance costs (0.4) (0.4) 0.3 PnP Income statement • PnP net finance costs +0.3% • Funding interest reflects healthy cash position • IFRS 16 interest +3.1% reflects stable store estate
Page 13
13 WORKING CAPITAL MANAGEMENT Pick n Pay working capital balances (Rbn) H1 FY27 H1 FY26 % change Inventory 6.7 7.0 -3.2 Trade and other receivables 3.4 3.8 -9.3 Trade and other payables (10.8) (10.7) 1.6 Net working capital (0.7) 0.1 PnP Balance sheet • 3.2% inventory decline vs 0.1% turnover decline • R225m inventory reduction despite investment in inventory range Net working capital cashflow movement (Rbn) H1 FY27 H1 FY26 Pick n Pay 1.4 0.7 Boxer 1.3 1.0 Group liquidity inflow 2.7 1.7 Group Cash flow statement • Group working capital released R2.7bn liquidity • Normal seasonal pattern, partly unwind in H2 • Pick n Pay released R1.4bn liquidity • Focused inventory reduction plan
Page 14
14 GROUP CAPEX INVESTMENT *Capex net of all asset disposal proceeds H1 FY26 H1 FY27 FY27 forecast Boxer Clothing Pick n Pay R0.7bnR0.9bn R0.5bn R0.3bn R0.1bn R0.1bn R0.3bn R0.3bn R2.6bn R1.4bn R0.1bn R1.1bn Net capital investment* (Rbn) • Group H1 net capex of R0.7bn • PnP H1 gross capex of R0.6bn (+20.7% y-o-y) • PnP H1 net capex of R0.4bn y-o-y (+5.5% y-o-y), after R0.2bn of asset disposals • PnP full year gross capex guidance unchanged at R1.7bn • Strategic revamps prioritised
Page 15
15 PICK N PAY FREE CASH FLOW PROFILE FY26 Net cash closing balance Cash flow from operations* Net funding interest received Working capital movement Net capex^ H1 FY27 Net operational cash balance Boxer dividend Gross proceeds from 12.5% Boxer sale H1 FY27 Net cash closing balance Cash generation and utilisation (Rbn) *Cash flow from operations includes lease payments ^Capex net of all asset disposal proceeds -0.82.4 1.4 -0.4 2.8 4.7 Operational Free Cash Flow +R0.4bn 0.2 7.7 0.2
Page 16
16 • 88.2% loss reduction • PnP effective tax rate 32.9% • 34.1% Boxer NCI increase • Minority shareholding increased from 34.4% to 46.9% during May • Headline loss reduced 31.9% to R299m • WANOS flat • 31.9% HEPS growth to 40.71 cps GROUP EARNINGS PER SHARE *WANOS: weighted average number of ordinary shares, net of treasury shares Rm H1 FY27 H1 FY26 % change Loss for the period (38) (323) 88.2 Non-controlling interest (232) (173) 34.1 Loss attributable to PIK equity holders (270) (496) 45.6 Headline adjustments (29) 57 Headline loss for the period (299) (439) 31.9 WANOS* (millions) 734 734 flat HEPS (cents) (40.71) (59.77) 31.9 EPS (cents) (36.77) (67.53) 45.6
Page 17
17 Sean SummersIntroduction Results Overview CEO Update Tina Rookledge Sean Summers H1 FY27 Results 26 weeks ended 30 August 2026
Page 18
18 1.5% 2.4% 1.4% 2.1% 2.2% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% Internal Inflation H1 FY27 LfL growth H2 FY27 YTD LfL growth Grocery Retailer A Grocery Retailer B Grocery Retailer C VOLUME-LED GROWTH GAINING MOMENTUM • Positive LfL volume growth across company- owned supermarkets • H1 LfL growth of 2.4% slightly ahead of recent comparable period competitors results • Momentum building, with H2 YTD LfL growth ahead of H1 • Franchise LfL growth at 1.0% is a slight improvement on FY26 full year, with a focus on improving the offer to drive sales PnP Corporate Owned Competitor LfL growth Recent comparable period LFL growths
Page 19
19 OFFICIAL FOOD INFLATION LOWEST IN 16 YEARS • PnP SA internal selling price inflation at 1.5% - below CPI food inflation of 2.0%. Boxer recorded deflation of -2.4%, reflecting its high exposure to commodities, where price declines were pronounced • An expected El Niño weather pattern could reduce 2026–27 summer crops, with price consequences more likely visible in 2027 • Middle East tensions continue to drive uncertainty in the outlook for fuel and broader price inflation Official Stats SA Food and NAB inflation (monthly inflation yoy%) Internal inflation versus CPI Food* (March 2026 to August 2026) * Note: CPI Food incl. Non-Alcoholic Beverages -2.4% 1.5% 2.0% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% Boxer Pick n Pay CPI Food CPI Food* 15.7% 3.5% 11.7% 2.9% 14.0% 0.0 % 2.0 % 4.0 % 6.0 % 8.0 % 10. 0% 12. 0% 14. 0% 16. 0% Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 CPI Food 0.7% (June 2010) CPI Food 0.9% (July 2026)
Page 20
20 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% H1 FY25 H1 FY26 H1 FY27 H2 FY27 YTD FRESH STRENGTHENS OUR TURNAROUND Owned Store Fresh LfL sales growth % Growth is accelerating Value for familiesNew product Development Quality we stand behind Fresh Skills Training Fresh is a key growth engine of our turnaround Fresh skills training programme rolled out (External Culinary Institute) 50+ new and upgraded fresh lines in FY27 Direct farm partnerships, with quality tested at source Customers tell us they're getting quality for their money ~ 6%
Page 21
21 ADVANCING OUR ASAP! OFFER AI Shopping assistant Clothing online Grocery shopping became a conversation Ask for meal ideas Say what you need Snap fridge photo Repeat usual shop Build my basket PnP Clothing launched on ASAP! in March 2026 ONLINE SALES YEAR-ON-YEAR vs Mar-Aug 2025 +137% Credit Wallet Your money back in seconds Instant Refunds Spend anywhere It never expires
Page 22
22 SMART SHOPPER PRO | MORE VALUE MORE OFTEN • Launching Smart Shopper PRO – a new premium paid- loyalty tier, a first for PnP • Four everyday benefits: unlimited free asap! delivery, extra 10% off in-store, 3x points on fresh, 2x points on bp fuel • Deeper engagement across asap!, in-store and bp – more frequent shopping, bigger baskets and stronger retention • Richer first-party insight into how customers shop, powering more personalised, more relevant value for them
Page 23
23 SUPPLY CHAIN EFFICIENCY GAINS REMAIN ON TRACK • Inventory optimisation released significant working capital, whilst maintaining customer service levels • Improvements across forecasting, replenishment and store planning disciplines advancing decision making • DP World and Lieben Logistics delivering guaranteed savings as per plan • Strong cost control helping to mitigate economic and trading headwinds
Page 24
24 STORE LABOUR MODEL AGREEMENT CONCLUDED • Pick n Pay and SACCAWU have concluded a collective agreement following the Section 189A consultation process initiated on 4 May 2026 • The agreement establishes a more flexible, efficient and sustainable store labour model, with implementation commencing on 1 November 2026 • The agreed measures substantially address the Company's operational requirements and support improved labour productivity, workforce flexibility and customer service • The agreement provides greater certainty for employees and the business, creating a stable platform from which to further progress PnP’s recovery plans • The successful conclusion of the process reflects the constructive engagement and cooperation demonstrated by both PnP and its organised labour partners during the consultation period, which was ably facilitated by the CCMA • No operational-requirements dismissals have been necessary, enabling PnP to enter its peak trading period with stability, alignment and focus on serving customers
Page 25
25 PNP CLOTHING GROWTH SUPPORTED BY HIGHER VOLUMES • Our growth remains volume led with positive growth over the 6 months against unit decline reported in the market • Market share gains continue* driven by lifestyle apparel, Baby and Schoolwear • Launched PnP Clothing on ASAP! and relaunched website – combined online sales growth of +137% for H1 *RLC Report August 2026 • Opened 7 new stores and revamped 13, with sales growth since revamps outperforming rest of the estate • Priorities for the second half include: o 10 store revamps planned for H2 o Introduction of hybrid picking and assortment planning tools 3.9% YEAR-ON-YEAR vs Mar-Aug 2025 0.3% Rest of market* 7.9% 2-YEAR CAGR vs Mar-Aug 2024 2.5% Rest of market*
Page 26
26 ~6m FNB eBucks customers 99c bread expansion eBucks spend on asap! PARTNERSHIPS UNLOCKING GROWTH Limited-edition collectables with fuel Spend-and-win at PnP Express 55+ years partnership Banking, retail, digital SA’s most cost- effective domestic money transfers Campaigns drive frequency, benefiting both Fuel and PnP Express shop
Page 27
27 BOXER | H1 FY27 HIGHLIGHTS 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.)
Page 28
28 STEADY DELIVERY AGAINST OUR STRATEGIC PRIORITIES Recapitalise Leadership and People Accelerate LfL Sales Growth Future Fit Structure Strengthen Partnerships Reset the Store Estate Completed initiatives: • Successful recapitalization of the business • Leadership structures re- established and succession plans in place across senior roles, incl. CEO successor • Store estate reset plan (targeting loss-making stores) successfully executed • Strengthened partnerships delivering mutual growth In-progress initiatives: • Positive like-for-like volume growth in a challenging market • Significant progress across our Future Fit priorities – concluded Store Labour Model agreement is a critical milestone now achieved
Page 29
29 WELCOME SPENCER SONN
Page 30
30 • Pick n Pay reduced its loss despite a challenging market, but substantial further profitability improvement remains necessary • An improving customer experience is supporting topline growth, and initial benefits of other turnaround priorities in place are beginning to show in financial results • Further benefits from several initiatives are expected over the next 2½ years towards the FY29 break-even target • Importantly, the concluded Store Labour Model agreement is critical to PnP’s ability to reach profit break-even • We are encouraged by PnP SA supermarket LfL sales growth that has further improved after period-end • I thank all colleagues and our valued franchise partners as we rebuild and re-energise the business KEY TAKEAWAYS