Leon's Furniture (LNF) Investor presentation summary

Business overview and market position

• Operates 301 stores nationwide with a strong footprint across Canada, providing a competitive advantage over regional players.

• Maintains well-known retail banners, including Leon's, The Brick, and Appliance Canada, with a unified customer experience.

• Every business line, including e-commerce, insurance, warranty, and commercial, is profitable and contributes to overall profitability.

• Proven operators with an established track record and unmatched fulfillment capabilities, including one of the largest last-mile delivery networks in Canada.

• Digital strategy validated by $262M in e-commerce sales in 2025, representing ~10% of revenue and a 19.3% CAGR since 2017.

Financial performance and growth

• System wide sales have grown consistently, reaching $3.09B in 2025, with disciplined cost management reflected in stable SG&A as a percentage of revenue.

• Adjusted net income has increased steadily, reaching $177M in 2025, positioning for continued long-term growth.

• Regular and special dividends, along with share repurchases, demonstrate a commitment to returning capital to shareholders.

• Maintains a strong balance sheet with $296.8M in net cash and a market cap of $1.7B as of August 2026.

• Focus on growing EPS faster than revenue through margin management and SG&A efficiencies.

Strategic assets and value creation

• Owns 5.5M ft² of real estate holdings on 430 acres, with significant land available for intensification and redevelopment.

• Plans to create a REIT via IPO, vends income-producing properties, and retains majority interest for ongoing value realization.

• Several sites have unrealized embedded value, including high-density mixed-use development opportunities in Toronto.

• Largest network of home service technicians in Canada, with ~55% of sales generated outside core channels.

• Financial services and insurance offerings scaled through third-party partnerships, with over 2M warranty customers and 1M+ insurance policies sold.