Clicks Group Limited · JSE:CLS
Clicks — FY2026 Earnings Presentation
44 slides from Clicks's earnings presentation, October 2026
Slide 1: Annual results for the year ended 31 August 2026
2026 Annual results for the year ended 31 August 2026
Slide 2: Contents
Contents 01 Review of the year 02 Financial results 03 Trading performance 04 Strategy and outlook 05 Questions
Slide 3: Review of the year
01 Review of the year Bertina Engelbrecht
Slide 4: Review of the year
Review of the year • Extremely tough and competitive consumer environment • Opened 1 031st Clicks store and 835th Clicks pharmacy • 13.1m active ClubCard members • Opened 4 additional UniCare sites • Launched KwaMakhi, a township convenience retail brand • Increased shareholding in ARC Store • Acqui
Slide 5: Financial Results
02 Financial Results Gordon Traill
Slide 6: Key features
Key features Turnover up Total income margin Trading margin Diluted HEPS up down from 31.1% to down from 9.8% to 5.4% 4.4% Retail turnover up 4.2% 31.0% 9.7% to 1 422 cps UPD reported turnover up 9.2% Cash generated Returned to Return on equity Total dividend up shareholders down from 49.2% to by op
Slide 7: Turnover
Turnover % same % stores % R’m 2026 2025 change growth inflation Retail 39 126 37 554 4.2 1.8 1.5 Distribution 20 377 18 658 9.2 0.6 Intragroup turnover (9 089) (8 384) 8.4 Total group 50 414 47 828 5.4 1.2 • Retail value growth impacted by lower inflation, WMS system rollout in Western Cape in H1 a
Slide 8: Total income
Total income % 2026 2025 R’m 2026 2025 change % margin % margin Retail 14 159 13 252 6.8 36.2 35.3 Distribution 1 828 1 843 (0.8) 9.0 9.9 Intragroup (372) (234) Total group 15 615 14 861 5.1 31.0 31.1 • Retail margin driven by supply chain efficiencies • UPD impacted by much lower SEP increase (maxi
Slide 9: Trading expenditure – Retail
Trading expenditure – Retail % R’m 2026 2025 change Depreciation – PPE 645 598 7.9 Depreciation – ROU asset 1 228 1 133 8.4 Occupancy costs 225 210 7.0 Employment costs 5 025 4 897 2.6 Other costs 2 716 2 483 9.4 Total retail costs 9 839 9 321 5.6 % of turnover 25.1% 24.8% Finance costs – lease liab
Slide 10: Trading expenditure – Distribution
Trading expenditure – Distribution % R’m 2026 2025 change Depreciation – PPE 77 72 8.3 Depreciation – ROU asset 10 9 6.6 Occupancy costs 3 3 (11.9) Employment costs 385 385 (0.1) Other costs 793 749 5.9 Total distribution costs 1 268 1 218 4.1 • Depreciation of PPE driven by investment in systems •
Slide 11: Trading profit
Trading profit % 2026 2025 R’m 2026 2025 change % margin % margin Retail 4 320 3 932 9.9 11.0 10.5 Distribution 560 625 (10.4) 2.7 3.3 Intragroup 18 122 Total group 4 898 4 679 4.7 9.7 9.8 • Retail margin in FY2025 was 10.8% including unwind of Unicorn intragroup profit Clicks Group Annual Results 2
Slide 12: Growth in turnover, profit and margin
Growth in turnover, profit and margin 10.0% 9.5% 9.8% 9.7% 9.0% 9.2% 8.5% 8.7% 7000 8.0% 48 000 8.4% 50 414 47 828 44 000 7.5% 6000 45 438 40 000 41 622 5000 39 587 36 000 4 898 32 000 4 679 28 000 4000 4 172 24 000 3 623 3000 3 325 20 000 16 000 2000 12 000 8 000 1000 4 000 - 0 2022* 2023 2024 2025
Slide 13: Inventory
Inventory Days in stock Inventory (R’m) 2026 2025 2026 2025 % change Retail 79 77 5 951 5 613 6.0 Distribution 50 45 2 780 2 265 22.7 Intragroup inventory (41) (59) Total group 82 78 8 690 7 819 11.1 • Retail inventories impacted by new stores across all brands, and new pharmacies • New medical cons
Slide 14: Cash management
Cash management R’m • R1.5 billion final dividend to be paid to shareholders in January 2027 Clicks Group Annual Results 2026 14
Slide 15: Capital returned to shareholders
Capital returned to shareholders 4,000 R’m Total returned to date since 2006 of R25.7 billion 3,500 (dividends R16.6 billion + 3,000 R9.1 billion buybacks at an average price of R53.60) 2,500 2,000 1,500 1,000 500 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 16: Capital expenditure
Capital expenditure • R1 453m capex planned for FY2027 • R780m on stores: - 40 – 50 new Clicks stores, and other format stores - 70 – 80 store refurbishments • R673m on infrastructure: - R90m on UPD IT and warehouse equipment - R583m on retail systems and infrastructure, including WMS rollout to Cen
Slide 17: Continuing investment in core operations
Continuing investment in core operations 1 453 R’m 90 1 166 985 84 583 930 889 838 88 159 59 403 111 298 251 262 270 780 679 579 599 457 509 2022 2023 2024 2025 2026 2027 planned Stores Retail IT & Infrastructure UPD Clicks Group Annual Results 2026 17
Slide 18: Medium-term financial targets
Medium-term financial targets Achieved Medium-term in FY2026 target ROE (%) 48.7 40 – 50 ROIC excluding IFRS 16 (%) 49.5 40 – 50 ROIC (%) 31.2 20 – 30 ROA (%) 14.2 11 – 15 Net working capital days 33 30 – 35 Group trading margin (%) 9.7 9.0 – 10.0 Retail 11.0 10.0 – 11.0 Distribution 2.7 2.8 – 3.3 D
Slide 19: Sustained financial performance
Sustained financial performance 65% 65% 65% 65% 65% 10-year 63% CAGRs 62% 62% 1 422 60% 60% Total 1 362 shareholder 1 194 return³: 1 045 1 033 11.4% 925 886 776 774 754 Diluted HEPS: 679 664 637 12.5% 575 502 490 450 445 380 Dividend per 322 share: 2017¹ 2018¹ 2019 2020 2021 2022 2023 2024 2025 2026
Slide 20: Trading Performance
03 Trading Performance Bertina Engelbrecht
Slide 21: Retail Review
Retail Review
Slide 22: Retail sales performance
Retail sales performance % change % contribution Pharmacy 7.3 27.6 Front shop health & baby 2.2 25.1 Beauty & personal care 4.5 32.6 General merchandise 1.3 14.7 Total turnover 4.2 100.0 • Comparable stores turnover growth of 1.8% • Inflation 1.5% • Volume growth of 0.3% • Promotional sales now 47.1
Slide 23: Retail market shares
Retail market shares % 2026 2025 Health Retail pharmacy* 24.7 24.1 Front shop health** 32.6 33.1 Baby** 23.0 23.1 Beauty Skincare** 42.3 43.3 Haircare** 32.6 32.7 Personal care** 23.1 22.6 General merchandise Small electrical appliances** 19.7 18.7 * Per IQVIA (Private Retail Pharmacy S1-6) (restate
Slide 24: Revitalised Clicks ClubCard programme
Revitalised Clicks ClubCard programme • 13.1m active members, 84.2% of sales • R976 million cashback paid in FY2026 • “Pay even less” campaign launched 25 August 2026 – additional 10% discount for ClubCard members on 3 000 SKUs • Joint campaign with Engen & FNB/RMB – voted Best Short-Term Loyalty Ma
Slide 25: Revitalised Clicks ClubCard programme
Revitalised Clicks ClubCard programme Clicks Group Annual Results 2026 25
Slide 26: Anchored by health
Anchored by health • 835 Clicks Pharmacies, 225 clinics, 5 UniCare specialist pharmacies • 54.2% of households live within 5.0km of a Clicks store • Private label 12.3% of pharmacy • Awaiting approval of Unicorn GLP-1 generic • OTC on-demand pharmacy offer trialled in 23 stores • To be rolled out to
Slide 27: UniCare 24-hour pharmacies
UniCare 24-hour pharmacies • 24-hour dispensary ensures patients can access prescriptions, OTC medications and healthcare advice at all hours • Specialised services include wound care, diabetes clinic, vaccinations & travel clinic, IV clinic, orthopaedic support, blister packing and after-hours doct
Slide 28: Beauty – Sorbet Group
Beauty – Sorbet Group • The largest professional beauty and grooming brand in SA, providing over 4.4m treatments annually • Franchise model with 211 salons (193 franchise, 18 corporate) and potential to get to 300 salons, especially more Sorbet MAN • First Sorbet master franchise signed in Botswana;
Slide 29: Beauty – ARC Store
Beauty – ARC Store • Premium beauty market is cR6bn pa • Currently online and 11 stores, with potential to reach 20 – 25 stores • Focus on millennial & Gen Z customers • R530m in sales in FY2026 with same store sales growth c5 times the market • ARC customer spend in Clicks: R866m in last 12 months
Slide 30: An even more differentiated offer
An even more differentiated offer • R10.1bn sales of private label and exclusive brands • Private label is 25.8% of sales (front shop 30.9%, pharmacy 12.3%) • 17 private label products voted SA Product of the Year in their categories • Launching a premium private label diaper in March 2027 • Launche
Slide 31: Convenient access
Convenient access • 1 031 Clicks stores and 5 UniCare Format Total stores with 840 pharmacies and Convenience 801 Destination 235 225 clinics Total 1 036 • 270 stores located in low income areas (25.5% of retail turnover) • Online sales up 15.0%; Click & Collect now 30.3% of online sales • Relaunche
Slide 32: Efficiency through green transition
Efficiency through green transition • 70% of Cape Town DC energy from solar and renewable wheeling • Electric trucks for retail distribution • Clicks’ logistics partner has secured 30 heavy duty electric trucks for use at the Cape Town & Centurion DCs • Cape Town DC now operates a 100% electric truc
Slide 33: KwaMakhi – convenience township format
KwaMakhi – convenience township format • KwaMakhi means “at my neighbour’s place” • Market estimated to be worth cR900bn annually • 4 stores in Tembisa, Khayelitsha, Elsies River & Hammanskraal • c350m² in size – no pharmacy/clinic, differentiated branding • Each store employs c6 people from the sur
Slide 34: KwaMakhi – convenience township format
KwaMakhi – convenience township format Clicks Group Annual Results 2026 34
Slide 35: UPD Review
CLICKS GROUP LIMITED
Slide 36: Review of the year
Review of the year • Total managed turnover +4.1% to R31.8bn • Generic medicines up from 75.7% to 77.8% of medicine volumes and 58.5% of medicine sales • All UPD sites now ISO:13485 (medical devices) certified • Medical consumables acquisition successfully integrated and offer being marketed to hosp
Slide 37: Fine wholesale turnover
Fine wholesale turnover 60.3% Clicks & • Wholesale turnover up 5.7% UniCare (+9.1%) • Benefit of increased Clicks 35.0% Private Hospitals pharmacy openings; and Medical Consumables (+2.4%) 98% purchasing compliance 4.7% • Hospitals impacted by lack of growth Independent Pharmacies and in occupancy a
Slide 38: Medical consumables offer
Medical consumables offer • cR8bn p.a. addressable market • Mr First Aid is a leading distributor of medical devices and medical consumables throughout southern Africa • Adds to the basket of existing UPD customers like the hospitals with non-regulated product at a better margin than medicines • Opp
Slide 39: Strategy and Outlook
04 Strategy and Outlook Bertina Engelbrecht
Slide 40: Strategy
Strategy • The group is well positioned due to: • Competitive advantage in defensive health & beauty sectors with favourable long-term growth drivers • Market-leading shares in core retail categories and in pharmaceutical wholesale and distribution • Organic growth opportunities in stores, online an
Slide 41: Outlook
Outlook • The consumer will be severely constrained while the cost of fuel remains elevated and interest rates are higher • The strong Rand has offset pressures to some extent • Expect low selling price inflation to continue, but a second SEP increase of 2.88% has been enacted effective 1 October 20
Slide 42: Outlook (continued)
Outlook (continued) • Leveraging investments in UniCare, KwaMakhi, Sorbet, ARC Store, medical consumables and LEAP • Medium-term target of 1 200 Clicks stores • Plan to open 40 - 50 stores per year • Target of 15 – 20 UniCare specialised pharmacies • Target of 35% private label & exclusive brands in
Slide 43: Questions
skincare brandis (gia nwveciinl available
Slide 44: Disclaimer
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