Slides
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1 F O R T H E 5 2 W E E K S E N D E D 2 8 J U N E 2 0 2 6
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2 INTRODUCTION FINANCIAL REVIEW ACCOUNT MANAGEMENT STRATEGIC INITIATIVES OUTLOOK QUESTIONS 1 2 3 4 5 6
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3 1 INTRODUCTION
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4 THE RACE LENGTH DETERMINES THE RESULT WE BUILD FOR THE CENTURY, NOT THE QUARTER • 109 years of compounding. Always guided by our Business Philosophy. • Resilience through the cycle. Delivering globally competitive returns despite the headwinds, underpinned by: • Strong balance sheet and net cash position • Portfolio of aspirational, owned brands, and Office's relationships with leading international footwear brands • Well-managed credit book and a large account and loyalty customer base • Established retail presence across South Africa and the United Kingdom • Proven omni-channel capability across our store estate and digital • Discipline in how we invest. We reinvest in organic growth, return surplus funds to shareholders, and pursue acquisitions only where the fit is right. Considered decisions, made from conviction, with a clear sense of where and when to accelerate. • Growth is deliberately driven by brands, product and customer engagement and is not dependent on new stores, new customer accounts, or an expanded credit ceiling. Brand unique ranges, grounded in elevated basics and tiered through product elevation will drive growth through our large active account and loyalty customer base and omni-channel capability. • Positioned for the next century. Our mandate is long-term value creation: ensuring the business remains here, relevant, and compounding value for shareholders over time.
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5 TRUWORTHS THE TRUWORTHS PURPOSE STATEMENT Youthful, fashionable South Africans want to look attractive and feel successful and confident. Truworths entices them into exciting and visually appealing, aspirational real and virtual retail emporiums, which are staffed by passionate and knowledgeable team members and which offer wide ranges of curated and tasteful fashion of superb quality and intrinsic value. The ranges of unique aspirational fashionable brands are an innovative and adventurous blend of colour, fabric and fashion styling. THE VISION FOR OUR TRUWORTHS CUSTOMERS ‘Truworths helps me look attractive and feel successful and confident. Shopping at Truworths is exciting because it offers wide ranges of curated and tasteful fashion of superb quality and intrinsic value in retail emporiums that are visually appealing and staffed by passionate and knowledgeable staff.’ OFFICE THE OFFICE PURPOSE STATEMENT Youthful, fashionable customers want to look attractive and feel cool and confident. Strongly influenced by the iconic London fashion culture, Office presents them with a wide, curated, high-quality, relevant range of the latest in-demand styles and brands they desire. Office relates to each individual’s unique preferences by offering its range in a fashionable, aspirational, physical and digital environment that allows them to create their ultimate shoe wardrobe. THE VISION FOR OUR OFFICE CUSTOMERS ‘Office is the first place I go when I want to see a wide range of the latest high- quality shoes from in-demand fashionable brands, that make me feel attractive, cool and confident. Shopping at Office is effortless, whether I am online or in store, with a range that allows me to express my individuality and create my shoe wardrobe.’ OUR PURPOSE Defines the essence and fundamental ingredients of how we aim to meet our customers’ expectations OUR VALUES Shape the business culture and behaviours required to achieve our Purpose OUR VISION Describes the expectations of our stakeholders and how the business is assessed in terms of creating value for our stakeholders WE ARE ALWAYS GUIDED BY OUR BUSINESS PHILOSOPHY WHICH DIRECTS OUR CONSISTENT FOCUS ON THE LONG-TERM PURPOSE AS A GUIDING LIGHT THROUGH GOOD AND BAD TIMES TO DELIVER OUR VISION THE VISION FOR OUR EMPLOYEES ‘I am totally committed because my team members and I are encouraged to contribute innovatively, and celebrate and reward excellence in contribution.’ THE VISION FOR OUR SHAREHOLDERS ‘We are long-term investors in Truworths International because we trust in management’s capacity to execute innovative strategies which deliver significant value over time.’ Innovation and passion Celebrateand reward excellence in contribution Embracethe power of inclusive teams Encouraged to learn and share Invest in future potential Contribution focused OUR BUSINESS PHILOSOPHY
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6 2 FINANCIAL REVIEW GROUP
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7 7 DELIVERING ON OUR PLANS • Launched Fuel Ladies and prepared for launch of new brands, Hechter, Ovillo and Offspring in Summer 2026 • Significant progress on product and brand differentiation, elevating aspirational appeal • Sustained gross margin despite high levels of promotional activity in SA and UK • Truworths Africa distribution consolidated into new state-of-the-art DC with part allocation implemented across all categories • Acquired the Office UK DC for R105 million to support expansion of the business • Refined Emporium concept developed for introduction at Eastgate and Sandton stores (construction to commence in 2027 financial period)
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8 8 DELIVERING ON OUR PLANS • Invested £12.1 million in Office UK store development and remodelling programme (net 8 stores opened), resulting in a weighted average trading space growth of 8.1% • Grew online sales contribution to 21% (Truworths Africa 8.1% and Office UK 44.7%) • Sustained investment in technology, with AI adopted as a core philosophy and driver of our future growth • R2.8 billion returned to shareholders through dividends and share buy-backs • Net cash of R196 million, at period-end after share buy-backs and acquisition of the Office UK DC and land adjacent to Truworths Africa DC
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9 9 PERFORMANCE AGAINST TARGETS GROUP * Local benchmarks based on average ratios for comparable JSE-listed apparel retailers, Mr Price Group (year ended 28 March 2026) and TFG (year ended 31 March 2026). ^ Global benchmarks based on average ratios for listed global fashion retailers (with a 60% weighting to the average), being H&M (year ended 30 November 2025), Inditex (owner of the Zara fashion chain) (year ended 31 January 2026) and Lojas Renner (year ended 31 December 2025), and listed sportwear retailers (with a 40% weighting to the average), being Frasers Group PLC (year ended 26 April 2026) and JD Sports Fashion PLC (year ended 31 January 2026). Truworths International June 2026 Medium-term targets (published in FY25) Local benchmark* International benchmark^ Gross margin (%) 51.3 49 - 53 44.5 52.4 Operating margin (%) 19.2 18 - 23 11.6 12.7 Return on equity (%) 25 22 - 27 16 21 Return on assets (%) 20 18 - 23 12 13 Inventory turn (times) 3.9 3.5 - 4.5 2.6 3.4 Asset turnover (times) 1.1 0.9 - 1.3 1.0 1.1
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10 10 FINANCIAL PERFORMANCE GROUP SALE OF MERCHANDISE 0.1% R21 339m Jun 2025: R21 323m PROFIT BEFORE FINANCE COSTS AND TAX 4.4% R4 088m Jun 2025: R4 274m HEADLINE EARNINGS 4.5% R2 690m Jun 2025: R2 816m DIVIDEND PER SHARE 2.7% 474 cents Jun 2025: 487 cents NET ASSET VALUE PER SHARE 0.5% 2 845 cents Jun 2025: 2 859 cents GROSS MARGIN 51.3% Jun 2025: 51.3% OPERATING MARGIN 19.2% Jun 2025: 20.0% DILUTED HEADLINE EARNINGS PER SHARE 2.3% 726.6 cents Jun 2025: 743.4 cents CASH GENERATED FROM OPERATIONS 12.9% R4 216m Jun 2025: R4 841m Impacted by timing of month-end payments. On a comparable basis, cash generated from operations would have decreased approximately 2%.
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11 11 GROSS PROFIT TREND GROUP 9.3 10.4 10.8 10.9 11.0 53.5% 52.5% 52.3% 51.3% 51.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% - 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 Jun 2022 (52 wks)* Jun 2023 Jun 2024 Jun 2025 Jun 2026 Gross profit Gross margin (Rbn) * Weeks 2-53 (5 July 2021 - 3 July 2022) Gross margin 51.5% excluding change in accounting for cellular sales
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12 26 25 19 13 24 32 30 25 21 20 1.1 1.1 1.0 0.9 1.3 1.3 1.2 1.1 1.1 1.1 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 - 5 10 15 20 25 30 35 Jun 2017 Jun 2018 Jun 2019 Jun 2020^ Jun 2021 Jun 2022* Jun 2023 Jun 2024^ Jun 2025 Jun 2026 ROA ATO 31 27 22 14 32 48 48 36 28 25 46 40 35 25 50 69 69 54 42 39 - 10 20 30 40 50 60 70 80 Jun 2017 Jun 2018 Jun 2019 Jun 2020^ Jun 2021 Jun 2022* Jun 2023 Jun 2024^ Jun 2025 Jun 2026 ROE ROC 452 420 384 280 350 505 565 529 487 474 621 613 570 409 517 743 807 806 743 727 - 100 200 300 400 500 600 700 800 900 1 000 Jun 2017 Jun 2018 Jun 2019 Jun 2020 Jun 2021 Jun 2022* Jun 2023# Jun 2024 Jun 2025 Jun 2026 DPS DHEPS FINANCIAL PERFORMANCE GROUP (cents) (%) (times)(%) ^ Adjusted to exclude goodwill and intangible asset impairments and reversals # DHEPS excludes the impact of the indirect tax matter settlement * Weeks 2-53 (5 July 2021 - 3 July 2022) DPS AND DILUTED HEPS RETURN ON EQUITY (ROE) AND RETURN ON CAPITAL (ROC) RETURN ON ASSETS (ROA) AND ASSET TURNOVER (ATO) (INCLUDES TOTAL CASH)
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13 13 ROIC VS WACC GROUP * Weeks 2 - 53 (5 July 2021 3 July 2022) 35 28 25 23 21 14 14 15 14 13 - 5 10 15 20 25 30 35 40 45 Jun 2022 (52 wks)* Jun 2023 Jun 2024 Jun 2025 Jun 2026 ROIC WACC (%) Post COVID-19 recovery period Normalisation of ROIC due to impairment reversals and capex investment for the future ROIC excludes excess cash
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14 14 STATEMENTS OF FINANCIAL POSITION GROUP Jun 2026 Rm Jun 2025 Rm Change on prior period % Property, plant and equipment 2 946 2 768 6 Right-of-use assets 3 795 3 341 14 Goodwill and intangible assets 1 777 1 919 (7) Inventories 2 670 2 465 8 Trade and other receivables 5 459 5 473 - Assets held at fair value 368 353 4 Cash and cash equivalents and money market fund investments 2 662 3 188 (16) Other assets 412 397 4 Total assets 20 089 19 904 1 Total equity 10 303 10 731 (4) Lease liabilities 4 218 3 742 13 Trade and other payables 2 209 1 981 12 Interest-bearing borrowings and overdraft 2 454 2 454 - Other liabilities 905 996 (9) Total equity and liabilities 20 089 19 904 1
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15 Net cash/(debt) comprises interest-bearing borrowings and bank overdraft, less cash and cash equivalents (excluding cash and cash equivalents held by the charitable trusts) and money market fund investments held at fair value SHARE BUY-BACKS Bought back 17.1 million shares for R949 million during the period at an average price of R55.32 per share. Since January 2020 we have bought back 69.1 million shares for R3.4 billion at an average price of R49.72 per share. Since inception of the share buy-back programme in 2002, 172 million shares repurchased at a total cost of R7.0 billion at an average price of R40.40 per share. DIVIDENDS Final dividend of 153 cents per share (Jun 2025: 170 cents per share). Annual dividend per share of 474 cents (Jun 2025: 487 cents). FUNDING SA facilities of R4.0bn: R1.2 billion RCF and R2.8 billion general short-term banking facilities; R2.5 billion utilised CAPITAL MANAGEMENT GROUP Jun 2026 Jun 2025 Net cash/(debt) Net cash/(debt) to equity % Net cash/(debt) Net cash/(debt) to equity % Group Rm 196 1.9 720 6.7 Truworths Africa Rm (2 067) (21.2) (2 076) (21.1) Office UK £m 103.8 56.2 114.2 64.4 Net cash of R196 million after share buy-backs of R949 million
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1616 CASH FLOW ANALYSIS GROUP (Rm) 4 404 (188) 1 261 55 (518) (798) (267) 3 949 (1 128) (377) 74 2 518 (1 849) (949) (280) ( 500) 500 1 500 2 500 3 500 4 500 5 500 6 500 Cash EBITDA Working capital movements Interest received Dividends received Interest paid Tax paid Capex maintenance Free cash flow Lease liabilities (rent paid) Capex expansion Other Cash generated Dividends paid Share buy-backs Movement in net cash* * Movement in net cash before money market fund investments, and changes in borrowings and overdraft. Includes R105 million for the acquisition of the Office UK DC R826 million net cash generated excluding share buy-backs, and the acquisition of the Office UK DC and Truworths Africa DC- adjacent land Cash realisation rate 97% (2025: 90% on a comparable basis)
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17 2 FINANCIAL REVIEW TRUWORTHS AFRICA
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18 18 FINANCIAL PERFORMANCE TRUWORTHS AFRICA RETAIL SALES 2.1% R14 164m Jun 2025: R14 471m GROSS PROFIT 0.1% R7 365m Jun 2025: R7 376m PROFIT BEFORE FINANCE COSTS AND TAX 8.4% R2 573m Jun 2025: R2 810m PROFIT BEFORE TAX 9.4% R2 118m Jun 2025: R2 339m EBITDA MARGIN 27.3% Jun 2025: 28.9% GROSS MARGIN 54.0% Jun 2025: 53.6% OPERATING MARGIN 18.9% Jun 2025: 20.4% TRADING MARGIN 9.8% Jun 2025: 11.1%
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19 DIVISIONAL RETAIL SALES TRUWORTHS AFRICA Jun 2026 52 weeks Rm Jun 2025 52 weeks Rm Change on prior period % Truworths ladieswear 4 969 5 142 (3) Truworths menswear 3 656 3 666 - Truworths kids 1 326 1 417 (6) Other# 2 069 2 020 2 Truworths emporium 12 020 12 245 (2) Identity 2 144 2 226 (4) Truworths retail sales 14 164 14 471 (2) YDE agency sales 200 206 (3) # Cosmetics, Cellular, Office London (South Africa), Truworths Jewellery, Loads of Living and Sync BRAND CONTRIBUTION Truworths ladieswear 35% Truworths menswear 26% Truworths kids 9% Other 15% Identity 15%
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20 STORES AND TRADING SPACE TRUWORTHS AFRICA Stores Jun 2025 Store Movement Net Stores Jun 2026 Trading space '000 m2 Jun 2026 Truworths 360 (2) 5 3 363 297 Identity 256 (6) 6 - 256 70 Truworths Man 34 (3) 1 (2) 32 10 Uzzi 30 (4) (4) 26 3 Sync 28 (2) 4 2 30 3 Office London 24 6 6 30 3 YDE 19 (1) (1) 18 5 Earthchild 11 (2) (2) 9 1 Kids Emporium standalone 9 - 9 1 Naartjie 8 (1) (1) 7 1 Loads of Living 8 (1) (1) 7 2 Fuel 7 (2) (2) 5 -* Earthchild and Naartjie 6 2 2 8 1 Earthchild and Earthaddict 5 - 5 1 Earthaddict 2 (1) (1) 1 -* Daniel Hechter 1 - 1 -* Ginger Mary 1 (1) (1) - - Context 1 - 1 -* TOTAL 810 (26) 24 (2) 808 398 STORES OPENEDSTORES CLOSED * Less than 500m2
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21 21 SALES DENSITIES TREND TRUWORTHS AFRICA R per m2 36 317 35 256 35 682 32 357 34 649 36 510 39 359 37 648 37 311 36 296 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 Jun 2017 Jun 2018 Jun 2019 Jun 2020 Jun 2021 Jun 2022 (52 wks)* Jun 2023 Jun 2024 Jun 2025 Jun 2026 * Weeks 2 - 53 (5 July 2021 - 3 July 2022)
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22 22 RSP Inflation (%) MERCHANDISE INFLATION TREND TRUWORTHS AFRICA (5) - 5 10 15 20 2016 Summer 2017 Winter 2017 Summer 2018 Winter 2018 Summer 2019 Winter 2019 Summer 2020 Winter 2020 Summer 2021 Winter 2021 Summer 2022 Winter 2022 Summer 2023 Winter 2023 Summer 2024 Winter 2024 Summer 2025 Winter 2025 Summer 2026 Winter 2026 Summer Unusually high product inflation due to significant depreciation of the Rand in these two periods
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23 23 GROSS PROFIT TREND TRUWORTHS AFRICA (Rbn) * Weeks 2 - 53 (5 July 2021 - 3 July 2022) 7.4 7.9 7.5 7.4 7.4 56.7% 55.4% 54.9% 53.6% 54.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% - 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Jun 2022 (52 wks)* Jun 2023 Jun 2024 Jun 2025 Jun 2026 Gross profit Gross margin Gross margin 54.3% excluding change in accounting for cellular sales
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24 24 ANALYSIS OF TRADING EXPENSES TRUWORTHS AFRICA Jun 2026 Rm Jun 2025 Rm Change on prior period % Depreciation and amortisation 1 148 1 167 (2) Employment costs 2 008 2 018 - Occupancy costs 787 726 8 Trade receivable costs 1 375 1 260 9 Other operating costs 1 184 1 115 6 Trading expenses 6 502 6 286 3
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25 25 ANALYSIS OF TRADING EXPENSES TRUWORTHS AFRICA (CONTINUED) 2% Depreciation and amortisation • Property, plant, equipment and software: Excluding non-comparable stores and the new DC, depreciation decreased 13% due to assets becoming fully depreciated in the current period. • Right-of-use assets: Depreciation increased 1% on the prior period. 0% Employment costs • Excluding non-comparable stores and costs, employment costs increased 2%. 8% Occupancy costs • Comprises of non-IFRS 16 rentals and other occupancy costs (e.g. utilities, security and cleaning).
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26 26 ANALYSIS OF TRADING EXPENSES TRUWORTHS AFRICA (CONTINUED) 9% Trade receivable costs • Net bad debt and related costs, excluding the movement in the expected credit loss (ECL) allowance, increased by R46 million. • ECL allowance increased by R89 million compared to an increase of R35 million in the prior period, which resulted in a R54 million higher cost to the income statement: • ECL allowance in respect of the active trade receivables portfolio increased from 20.8% at June 2025 to 21.7% • ECL allowance in respect of the charged-off trade receivables portfolio was 72.9% (Jun 2025: 73.7%) 6% Other operating costs • The increase is mainly driven by higher e-commerce related delivery and digital communication costs.
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27 27 PROFIT BEFORE FINANCE COSTS AND TAX TRUWORTHS AFRICA (Rbn) * Weeks 2 - 53 (5 July 2021 - 3 July 2022) # Excludes the impact of the indirect tax matter settlement 3.5 3.5 3.2 2.8 2.6 35% 32% 32% 29% 27%27% 24% 23% 20% 19% 0% 5% 10% 15% 20% 25% 30% 35% 40% - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Jun 2022 (52 wks)* Jun 2023# Jun 2024 Jun 2025 Jun 2026 Profit before finance costs and tax EBITDA margin Operating margin
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28 28 CAPITAL EXPENDITURE TRUWORTHS AFRICA Actual Jun 2026 Rm Actual Jun 2025 Rm Committed Jun 2027 Rm Change on prior period % Store renovation and development 186 220 227 (15) Computer software and infrastructure 33 30 74 10 Land, buildings and refurbishments (excl. distribution facilities) 58 2 8 >100 Motor vehicles 1 1 2 - Distribution facilities 2 214 6 (99) Total 280 467 317 (40)
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2929 CASH FLOW ANALYSIS TRUWORTHS AFRICA (Rm) 2 686 (102) 1 177 1 004 (459) (476) (152) 3 678 (873) (101) 102 2 806 (1 847) (949) 10 - 1 000 2 000 3 000 4 000 5 000 Cash EBITDA Working capital movements Interest received Dividends received Interest paid Tax paid Capex maintenance Free cash flow Lease liabilities (rent paid) Capex expansion Other Cash generated Dividends paid Share buy-backs Movement in net cash* Cash realisation rate 99% (2025: 91% on a comparable basis) Includes dividends from Office UK for share buy-backs * Movement in net cash before money market fund investments, and changes in borrowings and overdraft.
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30 2 FINANCIAL REVIEW OFFICE UK
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31 31 FINANCIAL PERFORMANCE OFFICE UK RETAIL SALES 4.9% £334.1m Jun 2025: £318.6m EBITDA 8.5% £82.9m Jun 2025: £76.4m PROFIT BEFORE FINANCE COSTS AND TAX 7.1% £66.7m Jun 2025: £62.3m PROFIT BEFORE TAX 6.0% £63.6m Jun 2025: £60.0m GROSS MARGIN 46.6% Jun 2025: 47.1% EBITDA MARGIN 24.5% Jun 2025: 23.8% OPERATING MARGIN 19.7% Jun 2025: 19.4% TRADING MARGIN 18.6% Jun 2025: 18.0%
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32 32 Retail sales Jun 2026 £m Retail sales Jun 2025 £m Change on prior period % Number of stores* Jun 2026 Number of stores* Jun 2025 United Kingdom 317.6 303.9 5 88 80 Republic of Ireland 16.5 14.7 12 7 7 Total 334.1 318.6 5 95 87 * Including 11 concession stores (Jun 2025: 11 concession stores) SALES AND NUMBER OF STORES OFFICE UK Trading space increased by 17.8% (weighted average growth of 8.1%) Enlarged and modernised store base is expected to support future growth as new stores mature
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33 33 STORES AND TRADING SPACE OFFICE UK Stores Jun 2025 Store Movement Net Stores Jun 2026 Office standalone stores 72 (1) 8 7 79 Offspring standalone stores 4 1 1 5 Office concession stores 1 - 1 Offspring concession stores 10 - 10 TOTAL 87 (1) 9 8 95 STORES OPENEDSTORES CLOSED Approximately 50% of all stores are new or renovated in the new store format
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34 34 12 367 10 400 7 435 11 532 15 887 15 694 16 691 15 036 5 000 7 000 9 000 11 000 13 000 15 000 17 000 19 000 Jun 2019 Jun 2020 Jun 2021 Jun 2022 (52 wks)* Jun 2023 Jun 2024 Jun 2025 Jun 2026 SALES DENSITIES TREND OFFICE UK (£ per m2) * Weeks 2 - 53 (5 July 2021 - 3 July 2022)
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35 35 99.1 120.0 138.4 151.2 157.9 44.2% 45.2% 47.0% 47.1% 46.6% 0% 10% 20% 30% 40% 50% 60% - 20 40 60 80 100 120 140 160 180 Jun 2022 (52 wks)* Jun 2023 Jun 2024 Jun 2025 Jun 2026 Gross profit Gross margin GROSS PROFIT TREND OFFICE UK (£m) * Weeks 2 - 53 (5 July 2021 - 3 July 2022)
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36 36 ANALYSIS OF TRADING EXPENSES OFFICE UK Jun 2026 £m Jun 2025 £m Change on prior period % Depreciation and amortisation 16.2 14.1 15 Employment costs 35.6 32.0 11 Occupancy costs 18.2 17.8 2 Other operating costs 28.9 30.4 (5) Trading expenses 98.9 94.3 5
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37 37 ANALYSIS OF TRADING EXPENSES OFFICE UK (CONTINUED) 15% Depreciation and amortisation • Depreciation on property, plant, equipment and software increased 33% due to increased capital expenditure on store development. • Depreciation on right-of-use assets increased 10% due to new and renewed leases together with net impairment reversals recognised in the prior period. 11% Employment costs • Increase mainly due to UK national minimum wage and national insurance contribution increases from April 2025, as well as new stores. 2% Occupancy costs • Increase mainly driven by an increase in rates and service charges due to the growth in the store portfolio. 5% Other operating costs • Mainly driven by foreign exchange losses of £2.9 million recorded in the prior period. Excluding this from the prior period, other operating costs increased by 5% mainly due to increased online marketing and delivery costs.
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38 38 PROFIT BEFORE FINANCE COSTS AND TAX OFFICE UK ^ Adjusted to exclude goodwill, intangible asset, right-of-use asset and property, plant and equipment impairments and impairment reversals * Weeks 2 - 53 (5 July 2021 - 3 July 2022) ~ Pro forma (£m) 35.8 44.5 55.0 61.5 66.7 19% 21% 23% 24% 25% 16% 17% 19% 19% 20% 0% 5% 10% 15% 20% 25% 30% - 10 20 30 40 50 60 70 Jun 2022 (52 wks*)^ Jun 2023^ Jun 2024~ Jun 2025~ Jun 2026 Profit before finance costs and tax EBITDA margin Operating margin
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3939 Actual Jun 2026 £m Actual Jun 2025 £m Committed Jun 2027 £m Change on prior period % Store renovation and development 12.1 5.4 8.1 >100 Distribution facilities 4.7 0.2 0.7 >100 Computer software and infrastructure 2.7 1.5 3.2 80 Total 19.5 7.1 12.0 >100 CAPITAL EXPENDITURE OFFICE UK
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40 CASH FLOW ANALYSIS OFFICE UK (£’000) 75 593 (3 744) 3 672 (2 487) (14 191) (5 398) 53 445 (11 275) (11 821) 30 349 (1 229) (41 098) (11 978) (20 000) - 20 000 40 000 60 000 80 000 Cash EBITDA Working capital movements Interest income Finance costs Tax paid Capex maintenance Free cash flow Lease liabilities (rent paid) Capex expansion Cash generated Other Dividends paid Movement in net cash* Cash realisation rate 94% (Jun 2025: 88%) Includes £4.5 million for the acquisition of the Office UK DC £33.6 million net cash generated excluding dividends paid to Truworths International and the DC acquisition * Movement in net cash before money market fund investments.
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41 3 ACCOUNT MANAGEMENT
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42 42 ACCOUNT MANAGEMENT OVERVIEW • The credit book remains a strategic customer relationship asset supporting growth • More targeted account acquisition strategies delivered stronger new account growth at lower cost • Higher approval and account opening rates were driven by improved scorecard performance, enhanced use of alternative data and more targeted customer acquisition • Loyalty became the primary origination engine, representing 55% of all new accounts opened, demonstrating increasing value extraction from the existing customer base • Loyalty membership reached 24.3 million (up 7%), with 17.4 million unique loyalty members • PAY3, the Group’s in-house Buy Now Pay Later product, continued to gain momentum, with active customers increasing 56% and sales growing 39% • Disciplined credit management supported portfolio quality • Credit remained disciplined, with active accounts and the debtors’ book growing modestly while utilisation reduced and higher-risk exposure remained tightly managed • Consumer affordability pressure affected collections performance and resulted in higher provisioning, while the overall book remained stable • Data-led customer engagement delivered measurable results • Enhanced customer engagement capabilities delivered measurable conversion improvements, including significant uplifts from WhatsApp-enabled campaigns and increasingly personalised communications • Credit analytics and AI moved into operational deployment • Credit decisioning and collections capabilities were modernised through scorecard enhancements, alternative-data initiatives, and AI-enabled collections execution
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4343 49 30 35 40 45 50 55 60 65 The 2026Q2 TransUnion Consumer Credit Index fell below neutral as the share of accounts at least three months in arrears increased, revolving-credit utilisation rose and real household cash flow weakened. Cross-sectional data showed the increase in the number of accounts in arrears was concentrated in non-bank loans and clothing accounts. The year- on-year rise in rand value at risk was broader, with material contributions from non-bank loans, clothing accounts, credit cards and mortgages partly offset by declines in personal loans and vehicle finance. 55 Q2 2025 53 Q4 2025 49 Q2 2026 TransUnion Defaults & Distressed Borrowing 50% Household Cashflow 35% Debt Servicing Costs 15% DATA WEIGHING IN THE TRANSUNION CCI TRANSUNION CONSUMER CREDIT INDEX 2 0 2 6 Q 2
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4444 NEW ACCOUNTS RISK APPROVED VS. OPENED No of Applications No of Applications, Risk Approved % and Opened % 1.8 2.2 2.8 3.5 3.8 5.0 5.4 5.3 5.5 4.7 37% 38% 31% 26% 22% 19% 22% 24% 23% 30% 27% 28% 24% 18% 16% 13% 16% 17% 15% 19% 0% 5% 10% 15% 20% 25% 30% 35% 40% - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 2016/2017 Jul-Jun 2017/2018 Jul-Jun 2018/2019 Jul-Jun 2019/2020 Jul-Jun 2020/2021 Jul-Jun 2021/2022 Jul-Jun 2022/2023 Jul-Jun 2023/2024 Jul-Jun 2024/2025 Jul-Jun 2025/2026 Jul-Jun No of Applications Risk Approved % Opened % Millions More targeted account acquisition resulted in a lower number of applications, but with higher risk approved and opened rates at a lower cost, driven by improved scorecard performance and enhanced use of alternative data.
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45 45 APPLICANTS AGE DISTRIBUTION TRUWORTHS AFRICA <24 25-29 30-34 35-39 40-49 >50 <24: 23% 25-29: 17% 30-34: 18% 35-39: 15% 40-49: 18% >50: 9% 40% of new applicants younger than 30 and 58% younger than 35
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46 TRADE RECEIVABLE STATISTICS TRUWORTHS AFRICA Jun 2026 Jun 2025 ACTIVE TRADE RECEIVABLES Number of active accounts (000's) 2 869 2 855 Change in number of active accounts (%) - (1) Gross active trade receivables (before expected credit losses) (Rm) 6 484 6 448 Change in gross active trade receivables (before expected credit losses) (%) 1 - Expected credit loss allowance as a % of gross active trade receivables (%) 21.7 20.8 Qualifying payment (%) 90 90 Accounts opened (as % of applications) (%) 19 15 Risk approved (as a % of applications) (%) 30 23 Risk approved to opened conversion rate (%) 64 66 Active account holders able to purchase at period-end (%) 77 79 Overdue accounts as a % of total debtors (%) 17 17 CHARGED-OFF BOOK Gross charged-off trade receivables (before expected credit losses) (Rm) 573 543 Change in gross charged-off trade receivables (before expected credit losses) (%) 6 6 Expected credit loss allowance as a % of gross charged-off trade receivables (%) 72.9 73.7 INCOME STATEMENT Account sales as a % of total sales (%) 71 70 Net bad debt and ECL raised as a % of account sales (%) 11.9 11.4 Net bad debt and ECL raised as a % of gross trade receivables (%) 17.0 16.6 Trade receivable interest as a % of gross trade receivables (%) 16.2 17.4
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47 4 STRATEGIC INITIATIVES ASPIRATIONAL FASHION
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48 48 ASPIRATIONAL FASHION • Elevate the product offering and mix so customers choose to trade up because they value the product, raising average selling prices through value add rather than inflation • Introduce and roll out new brands and store concepts, including Offspring (streetwear), Ovillo (premium lifestyle), Hechter (elevated fashion) and Fuel Ladies (streetwear) in Truworths Africa • Expand the fashion basics range architecture, buy deeper into key volume lines and ensure suitable price tiering across the range • Elevate the range with appropriate use of recognisable marks that build heritage and value • Strengthen the internal design division to improve quick response capability in Truworths Africa • Enable and implement virtual product development capability
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49 49 ASPIRATIONAL FASHION • Implement enhanced product lifecycle platform with integrated generative AI platform and assortment planning • Advance AI integration across merchandise design, planning and pre- season forecasting • Maximise synergies between the internal design centres and buying teams across Truworths Africa and Office UK • Continue to test-and-scale new brands across Office and Offspring in Office UK • Grow the made-to-order (MTO) offer in Office UK • Including the launch of a premium MTO range and a broader footwear- related accessories range • Progress implementation of new merchandise and warehouse management system in Office UK • Targeting go-live in the 2028 financial period
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50 4 STRATEGIC INITIATIVES SUPPLY CHAIN
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51 51 SUPPLY CHAIN • Leverage the Truworths Africa distribution centre's part-allocation and automation capabilities across all product categories as the facility reaches operational maturity • Progress development of the adjacent land • Review the logistics partnership network to reduce costs and improve national and international delivery reliability • Strengthen the supplier base • Continued investment in local CMT suppliers, diversification of the regional sourcing base and onboarding of new suppliers • Shorten lead times and increase in-season agility through virtual product development and the fabric consolidation programme • Complete the next phase of the Office UK distribution centre re-engineering to expand capacity
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52 4 STRATEGIC INITIATIVES CUSTOMERS
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53 53 CUSTOMERS • Expand the range of credit products to improve customer engagement and support customer retention, while growing sales to lower-risk customers and containing risk in higher-risk segments • Continued scaling of PAY3 for younger and thin-file customers • Commence roll-out of third-party BNPL products • Grow the active account base through targeted conversion of loyalty programme members and the most productive acquisition channels • Deepen use of the customer data experience platform to deliver targeted, personalised communication through customers' channel- of-choice • Advance AI integration across credit risk and operations • Grow e-commerce contribution through personalisation, social commerce and AI-search discoverability across both segments • Integrate the Office and Offspring apps into the CRM system to enable personalised, channel-of-choice communications in Office UK
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54 4 STRATEGIC INITIATIVES RETAIL PRESENCE
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55 55 RETAIL PRESENCE • Largest store-opening programme planned since the COVID-19 pandemic • Introduce new Emporium Formé store concept at flagship locations and roll out new store and brand concepts across the portfolio • Continued roll-out of our newer brands where opportunities exist, including Fuel, Fuel Ladies, Sync (within Identity), Ovillo and Hechter • Integrate stand-alone Sync format into Identity and enlarge selected Identity stores to accommodate new sub-brands and merchandise categories • Continue to optimise trading space by introducing new brands in existing stores, and expanding or consolidating space as leases come up for renewal
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56 56 RETAIL PRESENCE • Transform the in-store customer experience through technologically- enabled stores • Implement further e-commerce enhancements to improve fulfilment and reduce costs • Expand and modernise the Office UK store portfolio • New, modernised and relocated stores applying the new store design concept and capitalising on consolidation in the UK retail sector • Selectively expand the Offspring store portfolio as strategic locations become available
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57 5 OUTLOOK
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58 OUTLOOK SALES AND TRADING SPACE • Group retail sales for the first seven weeks of the 2027 financial period decreased by 4.8% (decreased by 1.8% in constant currency terms) • Truworths Africa retail sales down 1.5% • Office UK retail sales down 2.3% (in Sterling) • Margin trends have improved in Truworths Africa and Office UK • Gross profit in both Truworths Africa (in Rand value) and Office UK (in Pound value) increased by approx. 3% for the first seven weeks • Management remains focused on actions that support medium-term recovery and growth • Group trading space is projected to increase by approximately 2% on a weighted average basis for the 2027 financial period • 1.5% on a weighted average basis in Truworths Africa • 16.4% on a weighted average basis in Office UK
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59 OUTLOOK TRUWORTHS AFRICA • The Group is well positioned to take advantage of improvements in the macro environment, although in the near-term consumer discretionary spending is expected to remain constrained • Confident of a gradual recovery in retail spending over the medium term • New fashion brands and store concepts will be introduced and trialled to extend the appeal of the aspirational fashion offering • Growth is expected to be driven primarily through product innovation, brand development, customer engagement and improved value extraction from the existing customer • Management will leverage its 2.9 million active account customers and extensive loyalty base to drive sales and strengthen customer engagement • Growth will be supported by the largest planned trading space expansion in recent years, continued online sales momentum and further supply chain efficiencies
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60 OUTLOOK OFFICE UK • While extensive promotional activity may persist, the outlook for the UK fashion footwear market remains cautiously optimistic • Lower inflation, stable interest rates, improving real wage growth and recovering consumer confidence are expected to support discretionary spending • Office UK is well positioned to benefit from improving market conditions • Its differentiated retail model remains a competitive advantage, supported by strategically located stores, department store concessions and a market-leading online platform • The business will continue investing in its store portfolio and its online capability to enhance the customer experience and improve brand accessibility • Expansion plans include 16 new stores, remodel five stores and three relocations to higher-performing trading locations
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61 6 QUESTIONS
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F O R A N Y I N V E S T O R R E L A T I O N S M A T T E R S , K I N D L Y S E N D A N E- M A I L T O : INVESTORRELATIONS @TRUWORTHS.CO.ZA
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63 DISCLAIMER This announcement contains certain forward-looking statements with respect to the financial condition and results of operations of Truworths International Limited and its group companies, which by their nature involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: global and national economic conditions; growth in trading space; interest rates; credit and the associated risks of lending; merchandise clearance rates; inventory levels and stock turn; gross and operating margins achieved; and competitive and regulatory factors. The Group does not undertake to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or otherwise.
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65 APPENDICES
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68 INCOME STATEMENT TRUWORTHS AFRICA Jun 2026 Rm Jun 2025 Rm Change on prior period % Sale of merchandise 13 638 13 770 (1) Cost of sales (6 273) (6 394) (2) Gross profit 7 365 7 376 - Other income 478 439 9 Trading expenses (6 502) (6 286) 3 Depreciation and amortisation (1 148) (1 167) (2) Employment costs (2 008) (2 018) - Occupancy costs (787) (726) 8 Trade receivable costs (1 375) (1 260) 9 Other operating costs (1 184) (1 115) 6 Trading profit 1 341 1 529 (12) Interest and dividend income 1 232 1 281 (4) Profit before finance costs and tax 2 573 2 810 (8) Finance costs (455) (471) (3) Profit before tax 2 118 2 339 (9)
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69 INCOME STATEMENT OFFICE UK Jun 2026 £m Jun 2025 £m Change on prior period % Sales of merchandise 339.0 321.3 6 Cost of sales (181.1) (170.1) 6 Gross profit 157.9 151.2 4 Other income 4.1 1.1 >100 Trading expenses (98.9) (94.3) 5 Depreciation and amortisation (16.2) (14.1) 15 Employment costs (35.6) (32.0) 11 Occupancy costs (18.2) (17.8) 2 Other operating costs (28.9) (30.4) (5) Trading profit 63.1 58.0 9 Interest income 3.6 4.3 (16) Profit before finance costs and tax 66.7 62.3 7 Finance costs (3.1) (2.3) 35 Profit before tax 63.6 60.0 6