LEWIS GROUP LIMITED — Earnings Release 2026

May 28, 2026

Lewis Group Limited
Incorporated in the Republic of South Africa
Registration number: 2004/009817/06
Share code: LEW
ISIN: ZAE000058236
Debt issuer code: LEWI
(the "Group" or the "Company")

SHORT-FORM ANNOUNCEMENT:
RESULTS ANNOUNCEMENT (INCLUDING AUDITED SUMMARY CONSOLIDATED FINANCIAL STATEMENTS) FOR THE YEAR ENDED 31 MARCH 2026
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 AND DIVIDEND DECLARATION

1. Introduction

Shareholders are advised that the following have been distributed:

• the Company's full announcement being the highlights, results commentary (which includes the cash dividend declaration referred to below) and the summary audited consolidated financial results for the year ended 31 March 2026 ("results announcement")
• the Company's audited consolidated financial statements for the year ended 31 March 2026 ("audited financial statements"); and
• cash dividend declaration of 560 cents per share.

The integrated report for the year ended 31 March 2026 will be released on or before 31 July 2026.

1. Highlights

2. Revenue increased by 11.1% to R10.3 billion

3. Merchandise sales increased by 7.3% to R5.5 billion
4. Other revenue increased by 15.7% to R4.9 billion
5. Gross profit margin improved from 43.4% to 43.7%
6. Debtors book grew by 15.2%
7. Operating profit increased by 12.8% to R1.3 billion
8. Earnings per share increased by 13.0% to 1 646 cents
9. Headline earnings per share increased by 18.3% to 1 753 cents
10. Total dividend increased by 12.1% to 897 cents per share
11. Return on equity up from 15.4% to 16.2%

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2

1. Results Commentary

Introduction

The Group continued its strong growth momentum in the year to March 2026, with headline earnings increasing by 18.4% despite constrained discretionary consumer spending. The Group continued to invest for longer-term growth through the expansion of its store footprint and debtors book, which grew by 15.2% to R9.2 billion.

The store base increased to 976 following the opening of a net 58 new stores, representing the highest number of store openings by the Group in a single year. This included 36 new outlets for the specialist bedding chain, Real Beds, which expanded its footprint to 52 stores.

Trading and financial performance

Merchandise sales increased by 7.3% to R5.5 billion, with sales growing by 7.8% in the second half relative to 6.7% in the first six months. Sales in the traditional retail segment, which accounted for 89.7% of sales, increased by 7.5%. The speciality segment, comprising predominantly of UFO, Real Beds and Bedzone grew sales by 5.4%. Comparable store sales across all brands grew by 4.8%.

Sales in the stores outside South Africa, which represent 15% of the store base, increased by 6.9% and accounted for 18.2% of Group merchandise sales.

Credit sales increased by 9.6% and accounted for 69.4% of total merchandise sales (2025: 68.0%). The Group maintained its strict credit granting criteria amid ongoing financial pressure on consumers, with the credit application decline rate increasing to 41.8% (2025: 38.5%). Cash sales increased by 2.5%.

The Group's customer base increased by 11%, representing an additional 77,000 accounts. This was achieved through effective customer acquisition and retention strategies and positions the Group for future credit sales growth.

Other revenue, consisting of effective interest income and ancillary services income as well as insurance revenue, benefited from the strong credit sales growth in recent years and increased by 15.7%.

Total revenue, comprising merchandise sales and other revenue, increased by 11.1% to R10.3 billion (2025: R9.3 billion).

The gross profit margin strengthened by 30 basis points to 43.7%.

Operating cost growth of 9.6% was contained below revenue growth. Costs were impacted by performance and growth-related expenses, including the accelerated expansion of the store base. Operating costs as a percentage of revenue reduced to

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34.0% (2025: 34.5%). Insurance revenue increased by 16.7% while insurance service expenses increased by 24.3%, impacted by a slightly higher claims ratio.

The quality of the Group's debtors book remains sound, with satisfactory paying customers at 82.6% (2025: 83.5%) and the collection rate at 78.1% (2025: 78.9%). The collections from instalment sales increased by 13.6% to R7.1 billion. Debtor costs increased by 9.8%, with debtor costs as a percentage of debtors at gross carrying value improving to 14.3% (2025: 15.0%). The debtors impairment provision as a percentage of debtors at gross carrying value increased to 37.7% (2025: 37.2%).

Operating profit increased by 12.8% to R1.3 billion and the operating margin expanded by 110 basis points to 23.8%. Impairments and capital items totalled R76.2 million (2025: R18.2 million) relating mainly to the impairment of right-of-use assets in the speciality segment.

The Group's net borrowings totalled R1 231 million at year end. The gearing ratio (including lease liabilities) increased to 40.0% (2025: 36.6%) and the borrowings ratio (gearing ratio, excluding lease liabilities) increased to 22.4% (2025: 17.3%). The higher borrowings relate mainly to the increased investment in the debtors book and store expansion. Both ratios are well within the board's risk appetite and management's guided ranges.

Headline earnings increased by 18.4% to R909.4 million. Earnings per share increased 13.0% to 1 646 cents and headline earnings per share by 18.3% to 1 753 cents.

The total dividend was increased by 12.1% to 897 cents per share, based on an earnings payout ratio of 55%.

The Group's return on equity strengthened further from 15.4% to 16.2%.

Outlook

The war in the Middle East has led to global economic uncertainty and volatility in international energy markets which has resulted in record fuel prices. Inflationary pressure from higher fuel and transport costs will adversely impact domestic consumer spending.

The Group remains well positioned to gain market share in the uncertain economic environment and will continue to focus on affordability and good stock availability while launching new exclusive merchandise ranges to support future growth.

Management plans to open 40 new stores in the 2027 financial year, including 25 traditional retail stores and 15 speciality bedding stores.

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4

Dividend declaration

Notice is hereby given that a final gross cash dividend of 560 cents per share in respect of the year ended 31 March 2026 has been declared payable to holders of ordinary shares. The number of shares in issue as of the date of declaration is 52 159 288. The dividend has been declared out of income reserves and is subject to a dividend withholding tax of 20%. The gross dividend for determining the dividend withholding tax is 560 cents and the dividend withholding tax payable is 112 cents for shareholders who are not exempt. The net dividend for shareholders who are not exempt will therefore be 448 cents. The dividend withholding tax rate may be reduced where the shareholder is a tax resident in a foreign jurisdiction which has a Double Tax Convention with South Africa and meets the requirements for a reduced tax rate. The Company's tax reference number is 9551/419/15/4.

The following dates are applicable to this declaration:

Last date to trade "cum" dividend	Tuesday	21 July 2026
Date trading commences "ex" dividend	Wednesday	22 July 2026
Record date	Friday	24 July 2026
Date of payment	Monday	27 July 2026

For and on behalf of the board

Hilton Saven
Independent
non-executive
chairman

Johan Enslin
Chief Executive Officer

Jacques Bestbier
Chief Financial Officer

Cape Town
28 May 2026

4. Auditors Report in Audited Financial Statements

Our independent auditors, Ernst & Young Inc, have expressed an unmodified audit opinion on the audited financial statements and on the results announcement for the year ended 31 March 2026.

The independent auditors report includes a section on key audit matters. The only key audit matter is the expected credit losses on trade receivables.

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The full independent auditor's report is set out on pages 12 to 15 of the audited financial statements.

Refer https://www.lewisgroup.co.za/pdf/audited-annual-financial-statements/fy26/lewis-afs-2026.pdf

5. Short-Form Announcement

This short-form announcement is the responsibility of the Company's directors and is a summary of the full audited financial statements for the year ended 31 March 2026 and does not contain full or complete details.

The results announcement and the audited financial statements can be downloaded from https://senspdf.jse.co.za/documents/2026/jse/isse/LEW/FY26.pdf and on the Group's website www.lewisgroup.co.za as follows:

Results announcement: Refer https://www.lewisgroup.co.za/pdf/audited-final-results/fy26/lewis-booklet.pdf

Audited financial statements: Refer https://www.lewisgroup.co.za/pdf/audited-annual-financial-statements/fy26/lewis-afs-2026.pdf

The full results announcement is available for inspection and may be requested at the company's registered office, at no charge, during normal business hours. Any investment decision in relation to the Company's shares should be based on the full announcement.

Cape Town
28 May 2026

Sponsor
The Standard Bank of South Africa Limited

Debt Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited