3i Group (III) Status Update summary

2024 Performance Highlights

• Net sales reached €13.8 billion in 2024, up 22% year-on-year, with operating EBITDA at €2,076 million, a 29% increase.

• Like-for-like sales grew 10.3%, driven by a 10.5% increase in transactions, and 352 new stores were opened, expanding the network to 2,918 locations across 12 countries.

• EBITDA margin improved by 80 basis points to 15.1% in 2024, supported by operating leverage and cost discipline.

• Maintained a strong price advantage, implementing 2,000 price reductions and focusing on daily necessities, with two-thirds of products below €2.

• All mature stores remain profitable, with an average store contribution margin of 24.7% and payback period under one year.

Strategic Initiatives and Growth Outlook

• Store network expanded to 2,918 across 12 countries, with plans to enter Switzerland and Romania in 2025 and open approximately 370 new stores.

• White space store potential in Europe increased to 4,850, reflecting further opportunities in existing and new markets.

• Ongoing investments in distribution centers, with three new DCs planned for 2025 and two more in 2026, growing the network to 15 DCs.

• New ERP system implemented to support scalability and efficiency, with temporary ERP-related availability issues resolved.

• US market study continues, while UK and Asia studies are paused for now.

Financial Model and Margin Development

• Cash generation remains strong, with €927 million in cash as of March 2025 and leverage reduced from 3.5x to 2.6x.

• Net debt/EBITDA increased to 2.6x after successful debt refinancing, with annual interest savings of €14 million in 2024 and €19 million in 2025.

• Capex increased to $369 million (2.7% of sales), mainly due to store expansion and ERP migration.

• Cash conversion was 81%, and all stores opened in 2020-2023 achieved payback in under one year.

• 2025 guidance: like-for-like sales growth expected in mid to high single digits, with further EBITDA margin improvement of 10–20 basis points.