1H 2025 Half-Year Results Presentation

Everyone, and thank you for attending the DFI Retail Group 2025 half-year results presentation. I'm Karen Chan, investor relations director. Joining us today is Mr. Scott Price, Group Chief Executive and Mr. Tom Van der Lee, Group Chief Financial Officer, who will be providing remarks on our half-year results followed by a Q&A session. Today's presentation will be in webcast in its entirety. In addition, the food tax of our results announcement and slide presentation have been uploaded onto the investor relations section of our website. Before we start, I would like to remind you of the following regarding the information to be provided during the presentation. The information about to be presented is for information purposes only and is not intended to be investment advice for any person. There's no intention to invite for any dealings in any securities. There may be forward-looking statements mentioned in the presentation materials which include statements regarding our intent, believe, or current expectations with respect to DFI retail groups, businesses, and operations, conditions, etc. You are expressly advised not to rely on these forward-looking statements

as they are subjective views which are subject to risks and uncertainties. And with that, I'll pass it over to Scott. Good morning everyone and thank you for joining DFI Retail Group's first half 2025 results presentation. I would like to start this morning by covering off some key highlights that we're seeing in the business in the first half of the year. In general, in my 30-some-plus years experience in Asia, this is the first time that we have seen such a broad-based negative consumer sentiment. I think that there is overall now both North Asia as well as Southeast Asia, a very value-focused, price-focused customer. We spent the last year really preparing to be able to provide those consumers who have this flight to value with the greatest source and across really all five of our formats. And we'll uncover that quite a bit of detail in the remainder of the presentation. What we see is accelerating growth potential

for the business overall in health and beauty, as well as we think about franchising and have announced that for our Indonesia business, building on a pretty strong store-owned portfolio that exists in the core cities in Indonesia. We're continuing to drive a very much convenience RTE proposition, offsetting some of the impact, in particular in Hong Kong, as tobacco sales decrease through our outlets as a result of a regulatory action on taxes. We see very much in our Hong Kong food value coming from price investments that we've made, as we have pivoted our sourcing strategy to bring greater value to our customers. And also, very much being able to, I think, protect our margin in gross profit as a result of not only resetting our sourcing, but also the value of our own brand, which I'll talk about

a little bit in some coming slides. Importantly, we've reached a milestone where our e-commerce transactions are now profitable in our business. That is part of our overall strategy as we balance between our own platform versus third party platforms, but importantly, see a path to a creative digital ecosystem, which is both e-commerce plus our retail media. And we'll speak in a little bit more detail in a few slides. Ongoing portfolio optimization, I think, as you know, we have divested Yung Way, received those proceeds. Divested Robinsons have received those proceeds. announced the sale which we'll execute in Q4 of this year. At that point we'll have proceeds as well. The divestments and those proceeds have as a result given us the ability to not only keep some flexibility in our balance sheet and our cash position for some inorganic growth but allow us to announce a special

dividend of 44.3 cents per share on top of our normal regular dividend. The scale of that 44.3 obviously substantial but we believe appropriate at this time. So with that I'm going to turn it over to Tom who's going to go through just a bit more detail on the financial results. Thank you Scott. Let me take it to the key financial highlights for the first half. The underlying profit is $105 million, a 39% increase year-over-year. The improvement is driven by associates following the investment of Yoon Hui, Max Simms, but also better results for Robinsons. In addition to that, we have strong results for HMB, food and home furnishing combined with lower interest costs. This was partially offset by lower resulting convenience and higher SG&A cost in the first half due to reversals in the first half of last year. The reported profit though is a loss and that's because of a translation impact after we completed the

investment of both Yung Way and Robinson. We see life for life sales stabilizing so it's excluding investments and cigarette sales. Last year life for life growth was negative 1.5. In Q1 it was negative 0.3 and in Q2 we see a positive Life-for-life growth at 0.9%. So the 20s is positive. Health and beauty deliver strong sales and profit growth. Life-for-life sales were up 4% and profit up 8% driven by a higher basket size. The convenience profit has been impacted by a one-off windfall gain from cigarettes in 2024. So we had a The windfall gained over $12 million in the first half of last year as we purchased cigarettes ahead of a tax increase, excluding which the convenience profit is up 9% year over year.