Slides
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Annual results for the year ended 31 August 2025 2025
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Contents 2 01 Review of the year 02 Financial results 03 Trading performance 04 Strategy and outlook 05 Questions
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3 01 Review of the year Bertina Engelbrecht
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Review of the year • Performance continues to prove defensiveness of the group • Diluted HEPS up 14.1% • Return on equity of 49.2% • 30th birthday of Clicks ClubCard, 12.6m active members • Opened 990th Clicks store and 780th pharmacy • Market share gains in core health & beauty categories • UPD core wholesale channels increased purchasing compliance, with expenses very well managed • Supporting gender diversity & empowerment Clicks Group Annual Results 2025 4
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02 Financial Results Gordon Traill 5
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Financial highlights Turnover up 5.3% Retail turnover up 6.0% UPD total managed turnover up 2.0% Total income margin up from 30.2% to 31.1% Trading margin up from 9.2% to 9.8% Diluted HEPS up 14.1% to 1 361.7 cps Returned to shareholders R2.7 bn Total dividend up 14.2% to 886 cps Cash generated by operations R6.6 bn Return on equity up from 46.4% to 49.2% Clicks Group Annual Results 2025 6
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Turnover • 7.0% Retail turnover growth excluding Unicorn Pharmaceuticals in FY2024 • Retail value growth impacted by lower inflation, higher level of promotions and continuing switch to private label • Retail price inflation 1.9% in H2 versus 3.3% in H1 • UPD value growth impacted by continuing genericisation of hospitals R’m 2025 2024 % change % same stores growth % inflation Retail 37 554 35 438 6.0 4.3 2.6 Distribution 18 658 17 750 5.1 1.3 Intragroup turnover (8 384) (7 750) 8.2 Total group 47 828 45 438 5.3 2.1 Clicks Group Annual Results 2025 7
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Total income • Retail margin driven by strong growth in private label and supply chain efficiencies • UPD impacted by slightly lower SEP increase (maximum of 5.25% vs 6.79% + 1.73% in FY2024) R’m 2025 2024 % change 2025 % margin 2024 % margin Retail 13 252 12 264 8.1 35.3 34.6 Distribution 1 843 1 769 4.2 9.9 10.0 Intragroup turnover (234) (318) Total group 14 861 13 715 8.4 31.1 30.2 Clicks Group Annual Results 2025 8
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Trading expenditure – Retail • Comparable retail cost growth 5.0% • Employment costs impacted by 7.0% wage increase and pharmacy openings • Other costs include electricity & water, and card acquiring charges R’m 2025 2024 % change Depreciation – PPE 598 575 4.0 Depreciation – ROU asset 1 133 1 032 9.8 Occupancy costs 210 210 0.1 Employment costs 4 897 4 529 8.1 Other costs 2 483 2 290 8.4 Total retail costs 9 321 8 636 7.9 % of turnover 24.8% 24.4% Finance costs – lease liability 338 280 20.9 Clicks Group Annual Results 2025 9
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Trading expenditure – Distribution • Depreciation of PPE driven by investment in systems • Benefit of solar and EVs on electricity and fuel costs R’m 2025 2024 % change Depreciation – PPE 72 58 24.5 Depreciation – ROU asset 9 17 (46.4) Occupancy costs 3 4 (18.8) Employment costs 385 378 2.0 Other costs 749 738 1.4 Total distribution costs 1 218 1 195 1.9 Clicks Group Annual Results 2025 10
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Trading profit • Retail margin is 10.8% including Unicorn intragroup profit • Intragroup a result of unwind of profit on Unicorn stock – will normalise in FY2026 R’m 2025 2024 % change 2025 % margin 2024 % margin Retail 3 932 3 628 8.4 10.5 10.2 Distribution 625 574 9.0 3.3 3.2 Intragroup 122 (30) Total group 4 679 4 172 12.1 9.8 9.2 Clicks Group Annual Results 2025 11
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Growth in turnover, profit and margin 8.2% 8.4% 8.7% 9.2% 9.8% Trading profit marginTurnover(R’m) Trading profit (R’m) * FY2021 continuing operations; FY2021 & FY2022 trading profit and margin adjusted for impact of civil unrest Clicks Group Annual Results 2025 12 37 339 39 587 41 622 45 438 47 828 3 045 3 325 3 623 4 172 4 679 0 1000 2000 3000 4000 5000 6000 7000 - 4 000 8 000 12 000 16 000 20 000 24 000 28 000 32 000 36 000 40 000 44 000 48 000 2021* 2022* 2023 2024 2025
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Inventory • Retail inventories impacted by new stores opened in July & August and focus on availability to drive sales • GLP-1 buy-ins and higher Unicorn stock levels in UPD • Group net working capital days improved from 35 to 34 days Days in stock Inventory (R’m) 2025 2024 2025 2024 % change Retail 77 76 5 613 5 245 7.0 Distribution 45 42 2 265 1 999 13.3 Intragroup inventory (59) (181) Total group 78 74 7 819 7 063 10.7 Clicks Group Annual Results 2025 13
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Cash management 2 705 3 256 6 534 (1 066) 73 (228) (1 167) (985) (1 911) (751) 52 Cash FY2024 Trading profit before working capital Repayment of lease liability Working capital movements Net finance costs Taxation Capex Dividends Share buybacks Other operating and investing activities Cash FY2025 R’m • R1.5 billion final dividend to be paid to shareholders in January 2026 Clicks Group Annual Results 2025 14
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Capital returned to shareholders Clicks Group Annual Results 2025 15 R’m 0 500 1 000 1 500 2 000 2 500 3 000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Dividends (R'm) Buybacks (R'm) Total returned to date since 2006 of R22.3 billion (dividends R14.5 billion + R7.8 billion buybacks at an average price of R47.33 – value of shares bought back at year end was R61.2 billion)
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Capital expenditure • R1 256m capex planned for FY2026 • R662m on stores: - 40 – 50 new Clicks stores and pharmacies - 70 – 80 store refurbishments • R594m on infrastructure: - R88m on UPD IT and warehouse equipment - R506m on retail systems and infrastructure, including WMS rollout to Cape Town, Centurion and Durban DCs • R1.3 – R1.4bn p.a. capex planned for next three years Clicks Group Annual Results 2025 16
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Medium-term financial targets Achieved in FY2025 Medium-term target ROE (%) 49.2 40 – 50 ROIC excluding IFRS 16 (%) 47.0 40 – 50 ROIC (%) 30.7 20 – 30 ROA (%) 14.9 11 – 15 Net working capital days 34 30 – 35 Group trading margin (%) 9.8 9.0 – 10.0 Retail 10.5 10.0 – 11.0 Distribution 3.3 2.8 – 3.3 Dividend payout ratio (%) 65 60 – 65 Clicks Group Annual Results 2025 17
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272 322 380 445 450 490 637 679 776 886 439 502 575 664 754 774 1 033 1 045 1 194 1 362 2016¹ 2017¹ 2018¹ 2019 2020 2021 2022 2023 2024 2025 59% 60% 62% 65% 60% 63% 62% 65% 65% 65% 10-year CAGRs Total shareholder return³: 17.3% Diluted HEPS: 13.5% Dividend per share: 14.2% Sustained financial performance ¹ Pre-IFRS 16 ² Based on HEPS ³ Based on reinvestment of dividends paid and the closing share price Dividend payout ratio²Dividend per share (cents) Diluted HEPS (cents) Clicks Group Annual Results 2025 18
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10-year CAGRs Clicks Group share price: 15.1% Food & Drug Retailers Index: 4.6% Top 40 Index: 7.8% Continued share price outperformance Clicks Group Annual Results 2025 19 0 100 200 300 400 500 600 0 100 200 300 400 500 600 Sep-2015 Dec -2015 Ma r-20 16 Jun-2016 Sep-2016 Dec -2016 Ma r-20 17 Jun-2017 Sep-2017 Dec -2017 Ma r-20 18 Jun-2018 Sep-2018 Dec -2018 Ma r-20 19 Jun-2019 Sep-2019 Dec -2019 Ma r-20 20 Jun-2020 Sep-2020 Dec -2020 Ma r-20 21 Jun-2021 Sep-2021 Dec -2021 Ma r-20 22 Jun-2022 Sep-2022 Dec -2022 Ma r-20 23 Jun-2023 Sep-2023 Dec -2023 Ma r-20 24 Jun-2024 Sep-2024 Dec -2024 Ma r-20 25 Jun-2025 Sep-2025 Clicks Group share price FTSE/JSE Food & Drug Retailers Index FTSE/JSE Top 40 Index
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03 Trading Performance Bertina Engelbrecht 20
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Clicks Group Annual Results 2025 21 Clicks business review
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Retail sales performance % change % contribution Pharmacy 6.9 26.8 Front shop health & baby 8.0 25.6 Beauty & personal care 7.4 32.5 General merchandise 4.4 15.1 Total turnover 7.0 100.0 • % changes exclude Unicorn Pharmaceuticals turnover in FY2024 • Comparable stores turnover growth of 4.7% (excluding extra trading day in FY2024) • Inflation 2.6% • Volume growth of 2.1% Clicks Group Annual Results 2025 22
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Market shares % 2025 2024 Health Retail pharmacy* 24.0 23.8 Front shop health** 33.1 33.4 Baby** 23.1 22.3 Beauty Skincare** 43.8 43.6 Haircare** 32.8 32.8 Personal care** 22.7 22.1 General merchandise Small electrical appliances** 18.7 19.1 * Per IQVIA (Private Retail Pharmacy S1-6) (restated) ** Per NielsenIQ (restated) Clicks Group Annual Results 2025 23
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Performance and strategy • Maintaining value • Price competitive with all national retailers • Promotional sales +12.4% to 47.0% of turnover • In pharmacy, generics +8.8% to 59% of sales and 71% of volume • R855 million cashback paid to ClubCard members Clicks price index* vs: Retailer A 96.9 Retailer B 98.4 Retailer C 98.2 Retailer D 99.0 * Excluding all promotional pricing, bulk deals and 3 for 2 promotions Clicks Group Annual Results 2025 24
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Performance and strategy • Differentiating our product offer • R9.7bn sales of private label and exclusive brands • Private label +10.7% to 25.9% of sales (front shop 30.6%, pharmacy 12.3%) • Six private label products voted SA Product of the Year in their categories • Clicks Baby standalone stores and 14 store-in-stores performing well • ARC Stores opened largest beauty store in Africa at Sandton City Clicks Group Annual Results 2025 25
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Performance and strategy • Engaging customers through personalisation • 12.6m active ClubCard members, 82.6% of sales • Most used loyalty programme* in SA • Online sales up 15.9%; online purchases and ‘research online purchase offline’ (ROPO) increased to 4.1% of sales • LEAP pharmacy management system will be rolled out to all pharmacies by November Clicks Group Annual Results 2025 26 * Per Truth & BrandMapp Loyalty Whitepaper 2025
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Performance and strategy • Extending convenience • 990* Clicks stores and 1 UniCare store with 780 pharmacies and 225 clinics • 53.2% of population < 5.0km of a pharmacy • Starting rollout of UniCare specialised format – two greenfield sites and two acquisitions planned in H1 • Opening clinics and trialling smaller formats • 247 stores located in low income areas (23.7% of retail turnover) Format Total Convenience Destination 764 227 Total 991 Clicks Group Annual Results 2025 27 * Includes 6 Clicks Baby stores
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Clicks Group Annual Results 2025 28 UPD business review
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Fine wholesale turnover • Wholesale turnover up 5.2% • Benefit of increased Clicks pharmacy openings; purchasing compliance > 98% • Hospital volumes +8.8% • Wholesale market share down from 26.7% to 26.2%* * Source: IQVIA, TPM, MAT August 2025, Schedule 1 - 6 Clicks (+9.5%) Private Hospitals (+1.4%) Independent Pharmacies and other Channels (-10.7%) 58.4% 36.2% Clicks Group Annual Results 2025 29 5.4%
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Review of the year • Total managed turnover +2.0% to R30.5bn • Generic medicines 75.7% of volumes • Excellent cost management post systems implementation, aided by solar, batteries and EVs • SAP and WMS rolled out successfully to seven distribution clients – remaining clients to be completed by March 2026 • Ordering additional 40 EV delivery vehicles in Gauteng & Western Cape Clicks Group Annual Results 2025 30
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31 Strategy and outlook Bertina Engelbrecht 04
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Outlook • Macro-economic indicators improving, yet the consumer remains constrained • The group is well positioned due to: • Competitive advantage in defensive health and beauty sectors – with market-leading shares in core retail categories and in pharmaceutical wholesale and distribution • Long-term organic growth opportunities underpinned by our value proposition and customer service • Increasing scale maximises and leverages efficiency, effectiveness and reach Clicks Group Annual Results 2025 32
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Outlook (continued) • Leveraging investments in LEAP pharmacy management system, UniCare, Sorbet and ARC Stores • Medium-term target of 1 200 Clicks stores • Plan to open 40 - 50 stores and pharmacies per year • Roll out of 10 - 15 UniCare specialised pharmacy format • Target of 35% private label & exclusive brands in front shop • R1.3bn p.a. in capex planned - continued investment in systems and omni-channel capability • Strengthened and expanded group executive • Confident of the group’s ability to continue delivering on medium-term targets Clicks Group Annual Results 2025 33
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34 05 Questions
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Disclaimer Clicks Group has acted in good faith and has made every reasonable effort to ensure the accuracy and completeness of the information contained in this presentation, including all information that may be defined as 'forward-looking statements' within the meaning of United States securities legislation. Forward-looking statements may be identified by words such as 'believe', 'anticipate', 'expect', 'plan', 'estimate', 'intend', 'project', 'target', 'predict' and 'hope'. Forward-looking statements are not statements of fact, but statements by the management of Clicks Group based on its current estimates, projections, expectations, beliefs and assumptions regarding the group's future performance. No assurance can be given that forward-looking statements will prove to be correct and undue reliance should not be placed on such statements. The risks and uncertainties inherent in the forward-looking statements contained in this presentation include, but are not limited to: changes to IFRS and the interpretations, applications and practices subject thereto as they apply to past, present and future periods; domestic business and market conditions; changes in the domestic regulatory and legislative environments; changes to domestic operational, social, economic and political risks; and the effects of both current and future litigation. Clicks Group does not undertake to update any forward-looking statements contained in this presentation and does not assume responsibility for any loss or damage whatsoever and howsoever arising as a result of the reliance by any party thereon, including, but not limited to, loss of earnings, profits, or consequential loss or damage. Clicks Group Annual Results 2025 35