Slides
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My SPAR, Our Tomorrow Interim Results Presentation For the period ended 28 March 2025
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INTERIM RESULTS PRESENTATION 2025 Agenda FY 2025 Interim Results Presentation Overview Angelo Swartz Operational update Angelo Swartz Financial review Reeza Isaacs Strategy & Outlook Angelo Swartz 2
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Overview Angelo Swartz, Group CEO
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INTERIM RESULTS PRESENTATION 2025 Key strategic priorities met Sep 2024 SPAR Poland Exit Dec 2024 Debt restructuring Jun 2025 Europe strategic review decision Sep 2025 SAP system roll out next DC Sept 2026 South African EBIT margin 3% Net debt / EBITDA 1.5X 4
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INTERIM RESULTS PRESENTATION 2025 H1 2025 Financial Highlights Continuing operations adjusted to allow for comparability after taking into account the impact of the adopting 52/26 weeks reporting Cash generated from total operations of R1.9bn SA leverage3 ratio: 2.1x Ireland leverage ratio: 1.9x Revenue Southern Africa +1.7% Ireland^ -0.6% Improved sales momentum post H1, boosted by Easter trade 1 Operating profit before extraordinary items. 2 in Local Currency 3 Post-transfer of Polish debt of R1.3bn transferred in December 2024 4 Pre IFRS EBITDA Southern Africa Operating profit +5.5% OP Margin: 2.0% (H1 24: 1.9%) Ireland2 Operating profit -0.4% OP Margin: 2.9% (H1 24: 2.9%) Group Operating profit1 +1.6% OP Margin 2.2% (H1 24: 2.2%) EBITDA4 Group +1.7% Southern Africa +5.9% Gross Margin expansion to 10.7% (H1 24: 10.6%) ROIC 15.6% ROCE 20.4% 5
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INTERIM RESULTS PRESENTATION 2025 Navigating a challenging landscape Challenges faced Low inflation and competitive market in SA Focus on product mix, cost control and DC efficiencies Margin improvement – especially in KZN Savings in warehouse & distribution costs in South Africa Consumer pressure and changing consumer habits in Ireland Emphasis on private label, promotions and cost control Despite minimum wage increases, operating profit margin remains resilient Liquidity pressure post-Poland Debt restructure, working capital focus Refinanced R9bn in South African funding Improved cash generation & FCF Significantly improved headroom Portfolio optimisation Initiated divestment of Switzerland and AWG – reclassified under IFRS 5 Narrowed focus and future value unlock Mitigating actions Positive developments 6
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INTERIM RESULTS PRESENTATION 2025 Poland • Poland disposal concluded January 2025 • Recorded loss on disposal of R531m - Includes R161 million non-cash recognition from FCTR - Impact of suspensive conditions pending at reporting date - now fulfilled - Finalisation of conditions resulted in adjustments to disposal proceeds and costs • Drew on the remainder of the bridge loan to refinance Polish debt as well as the working capital facility • Final repayment made at end Jan 2025 – no further cash outflows • Disposal key part of balance sheet optimisation strategy PLN’m Initial SENS – 4 Sep 2024 H1 25 NAV at 31/3/2024 305 305 PLUS:Loss to 31/1/2025 45 54 PLUS: Recapitalisation 40 40 PLUS: Restructuring costs 196 196 LESS: Purchase consideration (40) (1) Total cash outflow relating to disposal 546 594 7
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INTERIM RESULTS PRESENTATION 2025 Debt Stable funding profile with well-managed maturities GBF – 364 day facility, renewable annually SPAR Debt pre-28 March 2025 SPAR Debt post-28 March 2025 Committed GBFs R4,500 Committed GBFs R3,500 Seasonal GBFs R2,300 Seasonal GBFs R750 Bridge Loan R2,000 Syndicated debt R4,500 Facility A (2yrs) R2,000 Facility B (5yrs) R2,500 Total R8,800 Total R8,750 8 SPAR Group Ltd – R’m
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INTERIM RESULTS PRESENTATION 2025 Strategic review complete Disposal of SPAR Switzerland and AWG Prioritising markets where our model and scale drive competitive edge Streamlining Group's structure to focus on core geographies (Southern Africa and Ireland) Reallocate capital to higher- return, core-market opportunities Support balance sheet optimisation & long-term value creation Growth enabled under well- capitalised players with market-specific expertise Unlock shareholder value from reallocation of capital to core markets Strategic alignment Capital allocation discipline Value unlock 9
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Operational Review Angelo Swartz, Group CEO
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INTERIM RESULTS PRESENTATION 2025 SA wholesale grocery and liquor businesses *As at April 2025 LADS: Light Alcoholic Drinks RTD: Ready to DrinkRetail sales reflected are based on information shared by our retailers and are considered pro forma – they give a directional view of trading at store level • Performance impacted by macro trading conditions, seasonal impact of Easter and store closures (0.5% impact) • Liquor performance impacted by Easter and subdued growth in spirits & wine mitigated by good growth in LADS and RTD • Strong growth in SEM 1-3 stores of c.6%, offset by tough macro impact on middle and top customer segments • YTD* loyalty: 79.1% • Solid operating profit growth with margin expansion - EBITDA recorded 5.9% growth • On-demand - SPAR2U recorded sales growth in double digits and now available in 581 sites (H1 24: 420); volumes up 174% y-o-y - Uber Eats partnership launched in Q1 25; now available in 130 sites • Wholesale cases dispatched - Up 2% to 120.6m cases (H1 24: 118.4m) Retail Turnover growth (%) H1 25 H1 24 SPAR Supermarket +1.7 +7.1 Tops! +2.6 +13.5 Retail +1.9 +8.0 Retail LFL +1.6 +6.4 Wholesale Turnover growth (%) H1 25 H1 24 G&L +1.1 +5.2 11
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INTERIM RESULTS PRESENTATION 2025 Retail KPIs – Southern Africa G&L SPAR Supermarkets -0.7% TOPS at SPAR liquor +2.5% Combined -0.3% Average basket spend SPAR Supermarkets +2.5% TOPS at SPAR liquor +0.0% Combined +2.2% Footfall / Number of transactions at till 12 KPIs reflected are based on information shared by our retailers and are considered pro forma – they give a directional view of trading at store level
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INTERIM RESULTS PRESENTATION 2025 Build it • SA’s biggest building supplier business • Best in class performance given economic conditions & unseasonal rainfall • GP margin improvement driven by product mix • Build it strategy launched at 2025 convention; well received by independent retailers • Upgraded version of Build it Rewards progressed to onboard current retailers in system − Point of sale and cards currently in distribution phase to participating stores Turnover growth (%) H1 25 H1 24 Wholesale +4.1 -0.4 Retail +5.1 +1.2 Retail LFL +5.4 +2.6 13
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INTERIM RESULTS PRESENTATION 2025 SPAR Health • Turnover increased by 13.7% - Driven by growth in the Wholesale and Scriptwise within the specialised medications market - Positive momentum on Own Brand growth • Continued improvement in retailer loyalty - Currently at 58.0%, up from 53.2% in FY 24 • Increased student enrolment in the new Pharmacy Assistant Course • Strategic initiatives for driving further sales into the Wholesaler starting to yield benefits 14
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INTERIM RESULTS PRESENTATION 2025 BWG Group • Gross margin improvement due to product mix (higher non-tobacco sales) • Higher operating costs largely driven by minimum wage increase; partly offset by savings in delivery and transport costs • BWG brands growing market share and outperforming competitors in convenience channel • Positive performance from MACE as new stores and refits in prior year now yielding results • Successful integration of acquisitions in the prior two years are optimising the offering and loyalty opportunities • Implementation of new SPAR and EUROSPAR strategy to commence in H2 -0,5% 0,5% 1,5% 2,5% 3,5% 1,0 10,0 100,0 1 000,0 2018 2019 2020 2021 2022 2023 2024 Ireland* Operating profit Profit margin Continuing – excluding UK Ireland • Stable performance despite tough trading environment for consumers, impacted by Easter timing Revenue down 0.6% in local currency Top performing categories: retail food service, confectionary & dairy products 15 * In local currency
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INTERIM RESULTS PRESENTATION 2025 SPAR Sri Lanka JV Footfall +14.0% Items sold +9.0% • Double digit revenue growth in low-teens • In H1, SPAR Sri Lanka: - Added 1 corporate store and 9 independent retailers - 12 independent retailers in total • CPI: -2% as at Dec 2024, expected to increase to range between 2-3% in 2025 • On-demand - 4 stores active under Celeste (Quick commerce partner) - SPAR2U to be launched 16
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INTERIM RESULTS PRESENTATION 2025 Performance SPAR Switzerland Held for sale • Engaging in talks with a well-established entity with significant business interests and expertise in European food retail and distribution. Operating profit* • Retail footfall stabilised but smaller formats favoured over hypermarkets • Cyber-attack in March 2025 significantly impacted wholesale and TCC volumes - supply chain continuity largely preserved − Estimated impact on profits CHF2.5 million • Loyalty measures demonstrated positive YoY growth in January and February; however, negative in March due to cyber-attack • Acute margin pressure necessitated aggressive pricing efforts − H1 Pre IFRS 16 EBITDA: CHF 1.6m (H1 2024: CHF 13.5m) 0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0% 3,5% 1,0 10,0 100,0 2018 2019 2020 2021 2022 2023 2024 Switzerland Operating profit Profit margin Disposal 17 * In local currency
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INTERIM RESULTS PRESENTATION 2025 AWG Group Held for sale 0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0% 3,5% 4,0% 4,5% 5,0% 2,0 4,0 6,0 8,0 10,0 12,0 2018 2019 2020 2021 2022 2023 2024 UK Operating profit Profit margin Performance • Engaged in exclusive discussions with a respected UK firm that is ideally positioned to grow AWG in South West England. • General cost of living crisis in the UK negatively impacted performance • Top-line pressure as heavy discounting continues driving shift from convenience • Tobacco and vapes legislation negatively impacted tobacco sales • Wholesales costs well managed Disposal Operating profit* 18 * In local currency
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Financial review Reeza Isaacs, Group CFO
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Presentation of results Adoption of the retail calendar: The group adopted the 52/26 week reporting calendar - results for both 2025 and 2024 recalculated to reflect the results for a comparable period of 182 days or 26 weeks. Classifying the Swiss and UK operations as discontinued and consequent impairment: These operations were classified as held for sale and their results have been presented as discontinued operations. Accordingly, the March 2025 income statement has been presented to reflect the results of these operation as discontinued in the comparable period. In addition the carrying values of these entities have been impaired. For the 26 weeks ended March 2025: 3 days added from the 2024 year. Start: 27/9/24 1 Oct 2024 Interim period end: 28/3/25 (182 days) 31 Mar 2025 30 Sept 2025 (365 days) 52 week period end: 26/9/25 (364 days) 29/9/23 1 Oct 2023 29/3/24 31 Mar 2024 (183 days) 30 Sept 2024 (366 days) 27/9/24 (364 days) For the comparable 26 weeks ended March 2024: 1 day added from 2023, while 2 days removed from the period as this falls into the second half of 2024 20 2025 2024 1 2
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INTERIM RESULTS PRESENTATION 2025 Financial highlights *On a comparable basis. ^Operating profits before extraordinary items. 21 Turnover* from continuing operations up 1.1% in constant currency Gross profit* SA +3.9% Ireland up +1.2% in local currency South African operating profit*^ +5.5% (+7.8% adjusted for SAP implementation costs) Ireland PBT* +20.7% in local currency Working capital and cashflow well managed during the period Debt restructured SA gearing 2.1x Ireland gearing 1.9x HEPS* from continuing operations -0.4%
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Group income statement as reported The current period reflects 179 days compared to the prior period’s 183 days. This statutory group income statement is not directly comparable to 2024 due to the adoption of the 52/26 week reporting framework in the period. The South African rand exchange rates have improved on average against the Euro in particular. 22 (R'm) Mar 2025 Mar 2024 % change Continuing operations Revenue - sale of merchandise 65 160 66 457 -2.0% Cost of sales (58 162) (59 445) -2.2% Gross profit 6 998 7 011 -0.2% Other revenue 730 708 3.1% Other income 104 84 23.8% Net operating expenses (6 479) (6 368) 1.7% Operating profit 1 354 1 436 -5.7% Other non-operating items (2) - 100.0% Share of equity accounted results 4 3 33.3% Net finance expenses (362) (325) 11.4% Profit before tax 994 1 114 -10.8% Discontinued operations Operating loss (4 917) (584) >100.0% Average exchange rates Mar 2025 Mar 2024 % change Euro/ZAR 19.3 20.3 -5.1% CHF/ZAR 20.5 21.4 -3.9%
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Group income statement – 26 weeks comparable On the adoption of the 52/26 weeks reporting cycle, the results for March 2025 and 2024 have been adjusted to present 182 days for both periods. All commentary on operations are presented on this basis unless otherwise indicated. 23 (R'm) Mar 2025 Mar 2024 % change 182 days 182 days Continuing operations Revenue - sale of merchandise 66 079 66 236 -0.2% Cost of sales (58 990) (59 245) -0.4% Gross profit 7 089 6 991 1.4% Other revenue 744 705 5.5% Other income 106 84 27.2% Net operating expenses (6 475) (6 339) 2.1% Operating profit 1 464 1 441 1.6% Extra ordinary costs (63) (16) >100.0% Share of equity accounted results 4 3 33.3% Net finance expenses (366) (323) 13.5% Profit before tax 1 039 1 106 -6.0% EBITDA 1 719 1 691 1.7% Gross margin % 10.7% 10.6% Operating profit % 2.2% 2.2% Operating expenses remain a focus across the group. Increased in marketing, selling and online costs in South Africa and higher payroll costs in Ireland were offset by savings in warehouse and distribution costs due to lower fuel and delivery costs. Turnover was marginally down on the prior period. The South African operations were up 1.7% while Ireland was down by 0.6% in Euro. Foreign currency effects impacted the translated Irish results. The results were impacted by Easter falling in the second half of the current year. The increased net finance expenses were due to the higher interest on assumption of the Polish debt in South Africa, partially offset partially by lower interest costs in Ireland. Extraordinary items include the impairment of the Beyers Ridge land in South Africa of R68,9m, partially offset by the gain on the disposal of the ATM business in Ireland of R11.2m. Gross margin – despite the lower sales, the overall product mix and margin management saw gross profit improve by 1.4%.
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INTERIM RESULTS PRESENTATION 2025 Southern Africa Challenging trading conditions resulted in subdued topline growth; GP expansion and cost containment resulted in underlying operating profit growth of 7.8% 24 (R'm) Mar 2025 Mar 2024 % change 182 days 182 days Income statement Revenue - sale of merchandise 49 935 49 123 1.7% Cost of sales (45 022) (44 396) 1.4% Gross profit 4 913 4 727 3.9% Other revenue 477 426 12.1% Other income 99 77 29.2% Net operating expenses (4 500) (4 292) 4.9% Operating profit 989 937 5.5% Extraordinary costs (80) (21) Share of equity accounted results 4 3 33.3% Net finance expenses (272) (191) 42.2% Profit before tax 641 728 -11.9% EBITDA 1 113,3 1 051,0 5.9% Gross margin % 9.8% 9.6% Operating profit margin % 2.0% 1.9% Operating expenses - the current period saw increases in marketing, selling and online costs as advertising campaigns were stepped up. IT, digital and online costs increased with the investment in these areas. These increased costs were partially offset by savings in warehousing and distribution costs due to lower fuel costs. Turnover negatively impacted by the challenging trade conditions iro inland regions, the closure of stores in South Rand, the Mozambique unrest, subdued Black Friday performance and a weaker festive period. Lower LSMs outperformed other segments. Build it and Pharmacy performed better than the core SPAR business. Gross margin – improved by 20bps despite better liquor and dropshipment sales which are margin dilutive. Overall product mix and promotion and margin management underpinned improved performance. Increased net finance expenses versus prior period with the transfer of the Poland debt to SA. Operating profit, excluding extraordinary items was up 5.5%. Excluding the impact of SAP implementation costs, operating profit increased 7.8% on the prior period. Other income - increased income from the value added platform of services in Groceries and Liquor on the back of increased promotional activity.
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INTERIM RESULTS PRESENTATION 2025 Ireland GP expansion offset by higher employment costs which affected operating profit; substantial drop in finance costs; PBT up 20.7%% Sales were marginally down on the prior year but on plan due to a number of budgeted for store closures. Impulse categories have performed well, where inflation was in the double digits. However higher inflation has impacted volumes in other convenience categories. Gross margin positively impacted by product mix (higher margin non-tobacco and other impulse categories). Higher operating costs were driven by increased payroll costs as a result of the higher minimum wage. There were savings in delivery and transport costs due to a lower fuel price and volumes. Lower interest rates and strong working capital management underpinned substantially lower net finance expenses. Ireland’s profit before tax up 20.7% y-o-y. The UK operations have been treated as discontinued Extraordinary items primarily include the final parental guarantee fee paid to SA, offset by gains on the disposal of the ATM business. 25 Mar 2025 Mar 2024 % change 182 days 182 days Income statement continuing operations (EUR'000) Revenue - sale of merchandise 836 849 841 983 -0.6% Cost of sales (724 051) (730 576) -0.9% Gross profit 112 798 111 407 1.2% Other revenue and income 14 152 14 102 0.4% Net operating expenses (102 271) (100 737) 1.5% Operating profit 24 679 24 772 -0.4% Extraordinary items 159 (1 786) Net finance expenses (4 874) (6 448) -24.4% Profit before tax 19 964 16 538 20.7% EBITDA 31 401 31 487 -0.3% Gross margin % 13.5% 13.2% Operating profit margin % 2.9% 2.9%
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An impairment loss of R3.0bn (CHF147m) was recognised on held for sale classification in the Group results. Switzerland Tough trading environment and cyber attack significantly impacted performance and EBITDA Revenue in Retail and TopCC was negatively impacted by a highly competitive retail and wholesale sectors and customers continue to shop cross border. The high cost of living impacted consumer sentiment. Overall GP margin was 50bps higher than the prior period, despite the lower sales. The mix of sales from higher margin channels supported the increase. This was particularly evident in the retail and TopCC businesses. Overall operating expenses increased due to labour costs, energy costs and maintenance related to store acquisitions from franchisees. Net finance income/expenses is lower than prior year due to lower interest rates. . The impact of the cyber attack in March resulted in lost gross profit of around CHF0,9m and additional costs incurred of CHF1,6m. 26 Mar 2025 Mar 2024 % change 182 days 182 days Income statement (CHF'000) Revenue - sale of merchandise 352 536 371 495 -5.1% Cost of sales (286 815) (304 360) -5.8% Gross profit 65 721 67 135 -2,1% Other revenue and income 31 473 35 676 -11.8% Net operating expenses (99 627) (96 398) 3.3% Operating (loss)/profit (2 433) 6 413 Net finance expenses (2 687) (3 288) -18.3% (Loss)/profit before tax (5 120) 3 125 EBITDA 1 682 13 417 -87.5% Gross margin % 18.6% 18.1% 3.2% Operating profit margin % -0.7% 1.7%
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INTERIM RESULTS PRESENTATION 2025 27 UK/AWG Adverse trading conditions significantly impacted wholesale and retail sales, resulting in an operating loss of 3m Euro An impairment loss of R1,2bn (GBP50,5m) was recognised on held for sale classification in the Group results. 27 Mar 2025 Mar 2024 % change 182 days 182 days Income statement (EUR'000) Revenue - sale of merchandise 124 675 134 246 -7.1% Cost of sales (91 589) (99 375) -7.8% Gross profit 33 086 34 871 -5.1% Other revenue and income 2 712 2 409 12.6% Net operating expenses (38 803) (37 238) 4.2% Operating (loss)/profit (3 005) 42 Extraordinary items (211) (28) Net finance expenses (1 428) (1 628) -12.3% Loss before tax (4 644) (1 614) EBITDA (969) 832 Gross margin % 26.5% 26.0% 2.2% Operating profit margin % -2.4% 0.0% Operating performance was well below last year despite the inclusion of an additional three stores in the period: • The general cost of living crisis in the UK negatively impacted consumer confidence and adverse weather affected footfall. • Declining tobacco and vape sales also impacted gross margin. • The negative impact above was partially offset by overhead savings of 4%. Payroll costs remained relatively flat year-on- year. Extraordinary items include impairments of assets, profits and losses on disposals and transaction costs.
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INTERIM RESULTS PRESENTATION 2025 Group statement of financial position The March 2024 statement of financial position was reclassified in respect of the assets and liabilities held for sale to provide a more meaningful comparison. Substantial improvement in working capital and gearing levels during the period; net equity reduced by impairments. 28 (R'm) 28 Mar 2025 31 Mar 2024 % change 31 Mar 2024 As reported Reclassifed As reported ASSETS Non-current assets 20 170 20 448 -1.4% 32 518 Property, plant and equipment 5 069 5 587 -9.3% 10 164 Right of use assets 2 788 2 863 8 548 Goodwill and intangible assets 6 652 6 773 8 451 Other non-current assets 5 661 5 226 8.3% 5 355 Current assets 23 424 23 397 0.1% 27 783 Inventories 4 739 4 529 4.7% 6 586 Trade and other receivables 15 888 16 289 -2.5% 18 254 Cash and cash equivalents (excl. guilds and trusts) 1 027 846 1 106 Other current assets 1 770 1 733 1 837 Assets held for sale 11 828 17 879 -33.8% 1 423 LIABILITIES Non-current liabilities (14 293) (10 015) 42.7% (19 053) Long-term borrowings (6 741) (2 392) >100% (5 748) Lease liability (7 068) (7 119) (12 357) Other non-current liabilities (484) (505) (949) Current liabilities (23 570) (25 797) -8.6% (31 020) Trade and other payables (20 988) (20 435) 2.7% (22 450) Current portion of long-term borrowings (338) (328) 3.1% (2 012) Current portion of lease liability (1 413) (1 330) 6.2% (2 027) Bank overdraft (585) (3 615) -83.8% (4 426) Other current liabilities (246) (89) (105) Liabilities held for sale (11 030) (15 672) -29.6% (1 411) EQUITY (6 529) (10 240) (10 240) Closing exchange rates Mar 2025 Mar 2024 % change Euro/ZAR 20.0 20.4 -2.2% CHF/ZAR 21.0 21.0 -0.1% Property plant and equipment is down due to the impairment recognised in Southern Africa on the Beyers Ridge land and stores. Other non-current assets includes the lease receivables and prepayments. Prepayments in Ireland have increased with the inclusion of retailer contributions in prepayments (previously included in PPE). Inventory marginally up due to increased holdings ahead of Easter and softer than expected trade. Trade receivables is lower with the concerted efforts around collections. Trade receivables were also impacted by the earlier cut off on 28 March 2025. Trade payables is relatively stable and has been impacted by the earlier cut-off date of 28 March 2025. For net borrowings detail, refer to next slide. The refinancing of the South African debt was utilised to settle overdraft balances. Equity has been reduced by the impairments.
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INTERIM RESULTS PRESENTATION 2025 29 Net borrowings overview All covenants met with adequate headroom across facilities 1. March 2024 included the Polish debt of R2bn. 2. Excludes exceptional items. * In March 2025, leverage is no longer applicable as a covenant • SA leverage stable despite the inclusion of R2bn Polish debt as part of disposal (included in group debt in 2024). Reflects strong cash generation and well managed debt • Group borrowings of R6.6bn with exclusion of Switzerland • Lower average funding cost in line with interest rate reduction cycle. Rates expected to reduce further in line with outlook across regions • Covenants met across each entity; removed leverage covenant on Switzerland • Sufficient headroom across facilities 29 Mar 2025 Mar 20241 Group1 (R'm) Net Debt 9 711 11 080 South Africa (R'm) Net Debt 3 783 2 949 Headroom 3 756 3 209 Leverage 2,10x 2.10x Average funding cost 9.3% 9.9% Ireland (EUR'm) Net Debt 143 145 Headroom 97 95 Leverage2 1.89x 2.11x Average funding cost 4,3% 5,2% Switzerland (CHF'm) Net Debt 147 148 Headroom 16 20 Leverage * 5.18x
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Cashflows for the period Improved FCF as a result of working capital improvements and lower capex 2 374,1 ( 508,0) ( 406,0) ( 113,2) ( 414,2) 932,7 ( 125,5) ( 525,0) 282,2 Cash from operations Working capital Net finance costs Taxation paid Capital expenditure Free cash flow Acquisition of businesses Disposal of businesses Net cash movement 2 785,2 (1 542,0) ( 503,2) ( 218,4) ( 641,5) ( 119,9) ( 45,0) - ( 164,9) Cash from operations Working capital Net finance costs Taxation paid Capital expenditure Free cash flow Acquisition of businesses Disposal of businesses Net cash movement 30 26 weeks to March 2025 26 weeks to March 2024
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INTERIM RESULTS PRESENTATION 2025 Capital expenditure forecast for continuing operations Total capex forecast to remain stable at c.1.0% of turnover - 200,0 400,0 600,0 800,0 1 000,0 1 200,0 1 400,0 1 600,0 IT/SAP Replacement Expansion Total 31 Forecast capital expenditure (R'm) FY25FC 2HY25 FC FY26 FC FY27A 1HFY25
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INTERIM RESULTS PRESENTATION 2025 EPS and HEPS Stable HEPS on a comparable basis • March 2024 was re-presented due to the discontinued operations classification of Switzerland and Appleby • Continuing operations – 182 days takes into account the impact of the adoption of the 52/26 weeks reporting framework. 415,1 450,1 438,9 451,9 390,0 400,0 410,0 420,0 430,0 440,0 450,0 460,0 Earnings per share Headline earnings per share Total continuing operations - 182 days (cps) Mar 2025 Mar 2024 HEPS from continuing operations on a comparable basis is flat – effects of Irish earnings translated at a lower rate and interest costs are higher due to the transfer of the Polish debt to SA. 32
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INTERIM RESULTS PRESENTATION 2025 Return metrics SPAR Group SPAR Southern Africa BWG Group ROIC 15.6% 13.1% 19.4% ROCE 20.4% 22.6% 18.4% WACC 11.1% 12.1% 8.8% ROIC and ROCE have been calculated on a pre-IFRS 16 basis. 33
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Strategic review Angelo Swartz, Group CEO
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INTERIM RESULTS PRESENTATION 2025 Final two strategic priorities in focus Sep 2025 SAP system roll out next DC Sept 2026 South African profitability 3% EBIT margin Net debt / EBITDA 1.5X • Strong recovery in KZN trading profit to a normalised FY22 - positive outcome of focused interventions & architectural changes • Build it implementation – expected Feb 26 • Steady improvements in SA operating margin • Corporate stores performance stabilising • Target achievable – H2 26 x Sep 2024 SPAR Poland Exit Dec 2024 Debt restructuring Jun 2025 Europe strategic decisions Timing – H2 26Timing – CY 26 35
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INTERIM RESULTS PRESENTATION 2025 SAP implementation update 2 In FY26, two distribution centres are set to launch Build it imports warehouse in H1 2026 followed by two other in H2 2026 Followed by three in FY27 Bulk of capex spent Enhanced procurement capabilities and automated forecasting are anticipated to optimise inventory levels and boost GP% over time. 36
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INTERIM RESULTS PRESENTATION 2025 Southern Africa margin Road to 3% goal KZN DC SA (excluding KZN) Corporate stores • Cost control • Product mix • Private label penetration • Top-line growth through loyalty improvement & acceleration of new stores • Warehouse optimisation • Enhanced procurement • Disposal of loss- making stores • Improved performance FY25E 2.1% - 2.3% Total margin uplift +[0.6% - 0.8%] 37 +[0.5% - 0.6%] +[0.1% - 0.2%] <0.1% FY24 1.5%
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Looking forward Angelo Swartz, Group CEO
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INTERIM RESULTS PRESENTATION 2025 Legal & Regulatory Update No material impact on continuing operations Swiss sanction • Hearing took place 15 May 2025 • Outcome of the hearing expected to be announced by end-September 2025 • Should the decision be unfavourable, SPAR can appeal (on both merits and quantum of the fine) Giannacopulos proceedings • Discovery process is still pending • Challenging to estimate timeline for resolution 39
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INTERIM RESULTS PRESENTATION 2025 Post Period-End Trade Continued momentum in operating profit due to cost saving initiatives Encouraging sales momentum 40
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INTERIM RESULTS PRESENTATION 2025 Well-positioned to deliver on growth ambitions Southern Africa International Grocery and Liquor Building/ DIY Pharmacy Ireland Sri Lanka JV Brands SPAR Kwik SPAR Super SPAR SPAR Xpress SAVEMOR Tops! (Liqour) Build it Build it Plus Pharmacy at SPAR Consumer Health Non-SPAR Medical ScriptWise SPAR EUROSPAR MACE Londis XL Value Centre SPAR SaveMor SPAR Xpress Pharmacy at SPAR Tops! Adjuncts Encore ( Grocery Private Label) Encork (Liquor Private Label) Engage (Sales & Merchandising) Engine (Manufacturing) Enpack (Packaging) BWG Food Service DC (logistics & delivery) KwaZulu-Natal Western Cape (incl. Namibia) Eastern Cape North Rand South Rand Lowveld (incl. Mozambique, eSwatini) Build it/Imports DC - Pinetown Drop shipment primary Carletonville (Future: 3- 6 dedicated) Dublin Retail Stores 1 086 (Grocery) | 935 (Liquor) 398 118 1 459 23 Retailer Loyalty 79% (Grocery | 72% (Liquor) 68% 58% 41
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INTERIM RESULTS PRESENTATION 2025 Executing on growth Growing revenue and managing costs responsibly Value Sales Cost • Enhanced offering • On-demand • Strategic retail partnerships New Loyalty Corporate stores • New formats • New sites • Adjacencies Organic • Enhanced procurement • Right stock, right time, right price • Overrider and rebate schemes • Sell loss-making stores • Optimise performance Opex • Embed TOM • Disciplined spend • DC optimisation 42 *Target Operating Model
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INTERIM RESULTS PRESENTATION 2025 Unwavering focus on Retailers Key Focus on Profitability & Success of our retailers Independent SPAR retailers crucial for long-term growth Management Collaboration with retailers Ensuring a competitive business model Efficiency and Sustainability • Maintaining efficiency in operations • Promoting sustainable practices • TOM* Our Ambition: Unleash the Power of Independent Retail *Target Operating Model 43
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My SPAR, Our Tomorrow https://thespargroup.com/investors/ Detailed results available on Group website
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INTERIM RESULTS PRESENTATION 2025 • CPI +2.7% +3.8% Food and non-alcoholic beverages +3.1% +4.7% Alcohol and tobacco +4.2% +4.7% 2025 2024 • CPI +2.0% +0.7% Food and non-alcoholic beverages +3.3% +1.9% Alcohol and tobacco +4.2% +3.1% 2025 2024 • CPI +0.4% +0.8% Food and non-alcoholic beverages -0.2% +0.3% Alcohol and tobacco +0.6% +1.8% Appendix: Indicative inflation Southern Africa Ireland Switzerland 2025 2024 Source: Official country statistics Southern Africa Internally measured wholesale price inflation 2025 2024 Groceries and Liquor 2.85% 7.02% Build it Est. 3.5% Est. 5.2%