FY 2025 Full-Year Results Presentation

Good morning, everyone. Thank you for attending the DFI Retail Group 2025 full year results presentation. I'm Karen Chan, Strategy and Investor Relations Director. Joining us today is Scott Price, Group Chief Executive and Tom Van Der Lee, Group Chief Financial Officer who will be providing remarks on our full year results, followed by a Q&A session. Today's presentation is being webcast in its entirety. In addition, the full text of our results announcement and slide presentation are uploaded onto our IR website. And before we start, I would like to remind you of the following regarding 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, we leave expectation with respect to DFI retail group businesses, operations, market conditions, etc. You're 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. Scott, please. Good morning, everyone. Thank you, Karen. A pleasure to be here talking about our full year of 2025 results and also sharing with you some of the insights that we glean from the second half of the year versus the last time we gathered here. We're seeing a more confident customer in the second half of 2025. They're still careful. They're still not going back to, I think, the spending pre-COVID. But we are seeing customers willing to invest in convenience, invest in their own wellness, and also fun, which has been quite interesting. So some of the headlines we're now up to about a hundred and fifteen thousand daily e-commerce orders. So again that focus upon convenience, a lot of that is coming from our 7-eleven

in China business. A significant increase in what we would call the wellness category within health and beauty, where customers in particular around derma supplements are interested in functional value, in particular a younger customer that I think are more focused upon wellness than particularly previous generations. Collectibles and characters across across I think not only our 7-11, but also our own brand.

Hute always works and we're seeing it as an opportunity for us to grow. I think that we had good strong like with like growth. I'll talk about that in a couple of minutes. Good progress overall on the business and I think from a financial viewpoint, very pleased with the strength of our balance sheet now as we have paid down debt and are in a net cash position. As we look forward to 2026, I think, as Tom will share towards the end, our overall guidance. Think that we're having now an opportunity to benefit from really 18 months of hard work, pivoting our business to far more of this customer-centric Value plus, again, areas where they're willing to spend a bit of money. We obviously have to focus upon becoming a modern retailer, which means the digital and the role of digital

within our business is critical. We'll share some of the statistics there. We are very much focused upon financial returns, the TSR, our return on capital employed. So a key metric that we're using is increasing our revenue and profit per square foot across the business, which a great metric within retail to really test how you're doing and continuing to invest in our digital ecosystem which I'll describe in a little bit more detail. In terms of overall results which had been released, revenue from our core operating subsidiaries up 0.5%. Now that was a 0.8% in the second half. So So again, we're seeing this recovery across the total portfolio after a couple of years of challenging revenue, underlying profit of 34.7%. We have absolutely focused upon everyday low cost across the entirety of the business,

which has continued to drive a much higher growth in profit than revenue. I mentioned that cash position at $538 to $70. That is after paying a very significant special dividend of $600 million, so a 58.3%. We announced a full year dividend of 10.7% after approval from our board of directors yesterday. Overall, we're seeing some interesting trends. High value tourists are coming back to Hong Kong. We see now in many of our tourist stores great growth. I'll talk a little bit about that in particular, health and beauty. So tourist locations versus the previous tourists who prided themselves on coming to Hong Kong and spending nothing, bring their own water, their own food. We're now seeing a return of high value tourists, which is a great sign. Good mix now from cigarettes to ready to eat.