#1الحكير ALHOKAIR Fashion Retail أزياء التجزئة Investor Presentation March 2022 Fawaz Abdulaziz Alhokair Co. (Tadawul: 4240)#2Disclaimer This presentation has been prepared solely for use as an investor presentation for Fawaz Abdulaziz Alhokair Co. (the "Company"). By attending or by reading this presentation, you agree to be bound by the following limitations. The information contained in this presentation is for background purposes only and does not purport to be comprehensive and has not been independently verified, nor does it constitute or form part of any invitation or inducement to engage in any investment activity, nor does it constitute an offer or invitation to buy or subscribe to any securities in any jurisdiction, or a recommendation in respect of buying, holding or selling any securities. 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Investor Presentation 2#3About Alhokair#4The leading retail franchiser The leading franchise retailer in Saudi Arabia, and the first choice for brand partners seeking exposure to strategic markets Morocco Balkans Georgia Armenia Lebanon Iraq Jordan Libya Egypt KSA Azerbaijan Kuwait Bahrain Qatar UAE Oman * Store count as of December 2021. Count excludes newly signed agreements (Fnac Darty, Flying Tiger, Subway & Secrets) ** Exited from Macedonia during Q1 FY22 *** US operations is not represented in the graph Fawaz Abdulaziz Alhokair Co. Kazakhstan X 1,684 stores* c.471k sqm 11 countries** Leaders in KSA 1,047 Saudi stores 315 F&B outlets Core market International footprint Potential market via Vogacloset 315 intl. stores Access to new markets via Vogacloset Investor Presentation 4#5Differentiated brand portfolio; diverse revenues Our Brand Portfolio Is Our Competitive Advantage & Transformation Driver to a Lifestyle Destination 85 brands Targeting most consumer segments through Diversifying F&B offering economy and fast fashion Successful relationship with partners and alignment on strategy brands Evolving brand mix focused on high margin segments 9M-FY22 FY21 53 14 7 7 6 5 26 5 Fast Fashion Economy F&B Footwear Accessories 53.4% 56.7% 10.8% 10.8% 8.2% 7.0% 6.3% 5.4% 3.3% 3.3% Kidswear 2.9% 3.3% Lingerie and intimate apparel 3.0% 3.9% 1 High Street Electronics 3.7% 3.1% 5.0% 3.6% 1 7 1 2 Homewear Beauty & Makeup Entertainment Sports 1.1% 1.6% 1.1% 1.0% 0.8% 0.1% 0.4% 0.0% * Brand count as of December 2021. Count excludes newly signed agreements (Fnac Darty, Flying Tiger, Subway & Secrets) 5#6Our market The Saudi retail and F&B sectors enjoy strong fundamentals underpinned by favorable demographics, evolving lifestyles and low e-commerce penetration Supportive demographics 62% of Saudis between 15-49 years old 64.7% internet penetration Growing F&B sector Supportive infrastructure Retail growth driven by e-commerce 6% p.a. growth in food services, next 5 years $ USD 8.3 billion MENA e-ecommerce market Cool Saudi 2030 Vision focus on development, logistics, infrastructure SAR 221 bn expected GCC and Egypt 80% F&B consumption in 2021 GDP per capita of USD 23,300 represent 80% of market Growing tourism sector 曾 60%+ shoppers in UAE & KSA Household spending on entertainment to reach CA Beauty and fashion are fastest growing Investment in logistics and enhanced delivery services and warehousing Shifting labor rules require Saudi participation in retail sector 53.2% monthly income spent on discretionary items $ 6% by 2030 Fawaz Abdulaziz Alhokair Co. Investor Presentation 10#7Revenue breakdown - 9M-FY22 Revenue by division Revenue by channel Revenue by geography 8.1% 17.2% 74.7% 96.2% 3.8% 4.0% 9.8% 3.4% 82.8% KSA Retail F&B Int'l Retail Store ■ Online KSA ■CIS Egypt Others Fawaz Abdulaziz Alhokair Co. Investor Presentation#8Our vision Our vision is to be the leading lifestyle retailer of choice in Saudi Arabia and our selected strategic markets 01 Expand scale and reach to become franchisor of choice by maintaining growth and cementing relationships. 02 Expand portfolio, modernize network and improve customer experience. 03 Improve omnichannel capabilities by growing and enhancing sales channels. 04 Develop effective and efficient operating model to drive the retail sector in the markets we operate. B ** 00 Enabled by our Operational Upgrade Strategy to support our growth ambitions Fawaz Abdulaziz Alhokair Co. Investor Presentation#9Operational Upgrade Strategy#10Our Operational Upgrade Strategy Portfolio optimization 01 02 駛 OD Optimize store network Ongoing FY22 Exit weak/non-performing markets FY22 Operational excellence IT, finance and other optimization initiatives FY22 Revamp inventory & supply chain management Expand portfolio - unique brand experience FY21-22 H2-FY22 Launch shared service center Increase revenue per SQM FY22 H2-FY22 Dispose of non-core assets 03 Building a lifestyle brand 04 New and differentiated brand identity FY22-23 H1-FY22 Stores roll-out for new brands FY22-23 Ongoing Commitment to digital Launch "Buy Now Pay Later" for new brands Enhance Vogacloset portfolio Grow F&B network Ongoing FY22 Launch customer service center Launch loyalty & CRM program H2-FY22 FY22 FAS Finance Achieved WIP Fawaz Abdulaziz Alhokair Co. Investor Presentation 10#11Retail: Key brand & store openings 9M-FY22 new brand store openings ■ 88% of 9M-FY22 total gross capex on 11 STAR existing brands Aleph, Lefties, Zara, Pull & Bear, LC Waikiki and new brands like Decathlon Q3-FY22 Retail ■ 22 stores opened. ■ 30 stores closed ■ Net 8 closures H2-FY22 openings alo yoga flying tiger 9M-FY22 Retail ■ 63 stores opened ■ 139 stores closed copenhagen ■ Net 76 closures FY23 fnac openings DARTY Fawaz Abdulaziz Alhokair Co. Investor Presentation Q4-FY22 Retail ■ c. 9 stores to be opened brining FY 22 Net Capex to SAR 85mn ~ 11#12Omnichannel transition Ongoing integration of our brands on Vogacloset & new Monobrand platforms rollout in KSA and abroad Vogacloset Monobrand Platforms KSA International V 51 Alhokair fashion brands are now live 14 Q3 - FY22 Total stock on hand of 126.7K units Introduced "Buy Now Pay Later" option Fawaz Abdulaziz Alhokair Co. New Features 5 ■ Decathlon KSA - KSA Launched Buy Now Pay Later on Aleph and Aldo Signed development contract for Aldo KSA application and 3 International sites Signed development contract for 8 KSA mono brand sites launching in Q1-FY23 Signed 3PL contracts bringing improved cost efficiency and ability to scale Introducing iPod sales within the rest of the Inditex portfolio, enabling omni-channel Investor Presentation 12#13Financial review Q3-FY22 and 9M-FY22#14At-a-glance Q3-FY22 SAR 1,466 mn Revenue SAR 245 mn Gross Profit 8.6% vs Q3-FY21 55.3% vs Q3-FY21 9M-FY22 SAR 102 mn EBITDA* 936.4% vs Q3-FY21 SAR 16 mn Net Profit Q3-FY21 SAR-128.1 mn SAR 4,528 mn SAR 809 mn Revenue Gross Profit SAR 369 mn EBITDA* 46.1% vs 9M-FY21 9M-FY21 SAR -33 mn 9M-FY21 SAR -372 mn *EBITDA represents pre-IFRS 16 EBITDA; EBITDA after excluding financial costs on lease liabilities Fawaz Abdulaziz Alhokair Co. Investor Presentation SAR 83 mn Net Profit 9M-FY21 SAR -762 mn 14#15Fawaz Abdulaziz Alhokair Co. 1,350 1,290 1,186 1,132 | 565 Top line surpass pre-pandemic levels Revenues, SAR million Sales +9% Y-0-Y and exceed pre-pandemic levels despite softened demand in December on renewed Covid worries. LFL consolidated sales growth, % Improving LFL growth performance. Q3 partially clouded by Omicron. Up until end-November, LFL growth recorded a solid 7.8%. I Q3-FY20 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q2-FY22 Q3-FY22 Investor Presentation 1,466 1,361 Q2-FY20 Q3-FY20 -3% 0% -10% Q4-FY20 -69% Q1-FY21 Q2-FY21 -17% -8% -3% Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 15 Q3-FY22 190% 12% 4%#16Strategic delivery drives sustainable profitability Gross Profit (SAR million) - GPM (%) EBITDA (SAR million) - EBITDA Margin (%) 20.0% 11.7% 16.7% 17.1% 12.7% | N 8.5% 6.9% 0.7% 258 157 232 245 163 116 102 Q3-FY20 Q3-FY21 Q2-FY22 Q3-FY22 Q3-FY20 10 Q3-FY21 Q2-FY22 Q3-FY22 ■ Gross profit and GPM exceed pre-pandemic levels based on clean numbers w Trading Margin (Revenue less COGS less royalties less normalized inventory provisions) stood at 42.0% in Q3-FY22 versus 43.8% for Q2-FY22 Q3- FY22 EBITDA margin impacted by higher landed cost and non- recurring VAT provision. 9M-FY22 EBITDA margin based on clean numbers, on track to meet guidance of 8.0% for FY22, with normalized target standing at 12-14% EBITDA represents pre-IFRS 16 EBITDA; EBITDA after deducting financial costs on lease liabilities Fawaz Abdulaziz Alhokair Co. Investor Presentation 16#17Balance sheet optimization Aggressive inventory management and working capital optimization to improve liquidity and increase efficiency Inventory balance (SAR million) Inventory efficiency ratios 2,029 -46% 1,656 40% 37% 1,263 1,257 1,099 1,168 24% 23% 22% Q3-FY20 Q4-FY20 Q2-FY21 Q4-FY21 Q2-FY22 Q3-FY22 Optimizing inventory levels through: Systems, policies and procedures, logistics, digitalization / technology ■ Terminal and ageing provisions at 1.7%, inline with guidance of 1-2% of sales Fawaz Abdulaziz Alhokair Co. Investor Presentation 24.3 25.6 18.2 18.1 17.3 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Weeks on hand -Inventory % of Sales exc. F&B 17#18Balance Sheet Management Capital alternation to restructure capital and further strengthen financial position 1. Share Capital of SAR 2.1 bn with accumulated losses of SAR 969 mn as at 30-Sept 2. Board recommends capital decrease followed by a capital increase 3. Capital reduction by 46% by cancelling 96.9 mn shares 4. Capital increase by way of a SAR 1.0 bn rights issue to SAR 2.13 bn 5. Capital alteration file submitted to CMA on Jan 17 Strengthening our financial position to enable long term sustainable growth 1 Lower leverage with proceeds used to lower Net Debt/EBITDA to 3.8-4.3x Fawaz Abdulaziz Alhokair Co. 2 Additional funding to support executing growth plan and exploring new initiatives Investor Presentation 3 Greater cashflow headroom accelerating ability to distribute dividends 18#19Segmental review Q3-FY22 and 9M-FY22#20Revenue breakdown - Q3-FY22 Revenue by division Revenue by channel Revenue by geography 20% 12% 9% 9% 4% 5% 80%88% OOO Q3-FY22 Outer circle Q3-FY21 - Inner circle 79% ■ KSA Retail ■ Int'l Retail ■ F&B 71% Q3-FY22-Outer circle Q3-FY21 - Inner circle ■ Stores ■ Online 95% 96% 3% 4% 13% 6% 4% 4% Q3-FY22-Outer circle Q3-FY21 - Inner circle ■KSA ■CIS Egypt Others Fawaz Abdulaziz Alhokair Co. Investor Presentation 20#21LFL Revenue Growth Saudi retail Saudi LFL revenues down 8.6% vs. pre pandemic levels due to Covid-19 restrictions during the quarter. Target low single digit LFL growth. International retail LFL improvement due to gradual removal of Covid-19 restrictions. Q3-FY20 Q4-FY20 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 178% Q3-FY20 Q4-FY20 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 5% 1% 2% -2% -6% -16% -8% 0% -11% -69% Fawaz Abdulaziz Alhokair Co. Investor Presentation -70% -41% -34% 213% 81% 55% -14% 21#22Store base rationalization slowing down Return to parent slide Store network evolution Net store openings of 2 stores in Q3-FY22, mainly driven by F&B store openings Gross Floor Area, SQM vs Sales Density, SAR Annualized 9M-FY22 revenue per sqm (+58% yoy) on an upward trajectory as we continue to generate more with less. 9M-FY22 annualized sales density exceeds pre-pandemic levels 12,331 1,806 1,739 1,709 1,682 1,684 314 301 303 312 322 321 318 317 316 315 1,171 1,120 1,089 1,054 1,047 8,135 12,826 478 464 438 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 9M-FY20 KSA non-F&B International F&B -Total No. of Stores 9M-FY21 Gross Floor Area - Retail (sqm '000) -Revenue (exc F&B & online)/SQM Annualized 9M-FY22* *Annualized figures are based on the period run rates Fawaz Abdulaziz Alhokair Co. Investor Presentation 22#23Saudi Arabia remains core market, key focus Saudi retail store network evolution Gross Floor Area, SQM vs Sales Density, SAR Annualized 9M-FY22 KSA revenue per sqm up +53% yoy and +3.4 % compared to 9M-FY20 1,202 1,171 13,211 22 12 13 17 15 8 8,907 -22 (29) -44 1,120 1,089 -50 -59 348 -48 336 1,054 1,047 13,656 311 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 9M-FY20 9M-FY21 Gross Floor Area (sqm '000) Annualized 9M-FY22* Revenue (exc. Online) per sqm (SAR) Closed Stores -Total No. of Stores *Annualized figures are based on the period run rates Fawaz Abdulaziz Alhokair Co. Investor Presentation 23#24Rapid growth in online sales Online revenues, SAR million E-commerce, % of total retail sales. 12 82 63 34 55 55 3.2% 38 5.1% 4.4% 3.7% 3.9% 4.1% 5.6% 4.1% 0.8% Q3-FY20 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q2-FY22 Q3-FY22 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY21 FY20 FY21 9M-FY22 Ecommerce normalizes: ■ Online sales 13% lower y-o-y compared to Q3-FY21 which benefited from higher demand due to stricter pandemic restrictions Contribution to retail revenue reaches 4.1% (excluding F&B) LFL online revenue growth decreased by 15.5% on higher in-store traffic Fawaz Abdulaziz Alhokair Co. Investor Presentation 24 24#25F&B segment poised for recovery and growth Total number of transactions (million) F&B store network evolution 17% 3.3 3.3 3.1 3.3 2.8 2.7 5% 5% 0% 17% 2% Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Total # of Transaction QoQ Growth Fawaz Abdulaziz Alhokair Co. 314 312 19 15 13 8 7 4 304 303 303 -4 -5 -5 -4 300 -9 -17 322 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Investor Presentation Opened Outlets Closed Outlets -Total No. of Outlets 25#26Outlook FY22#27Key takeaways and messages Name of the Game: Topline and Margins Key Takeaways from 9M FY22 Sustained profitability despite renewed Covid worries and non- recurring expenses Significant top-line recovery, sales surpass pre-pandemic levels Operational Upgrade Strategy on track; Ramping up our Digitalization and Transformation Ongoing Inventory optimization with 17 weeks on hand Key messages for FY22 1 Maintained leading position with an exceptional brand portfolio and a genuine omnichannel shopping experience and an affirmation as the "Partner of Choice" in KSA Fawaz Abdulaziz Alhokair Co. 2 Operational Upgrade Strategy with its four pillars is in full mode and starting to achieve high-quality outcomes thus ensuring financial strength and agility Investor Presentation 3 On track to deliver a profitable FY22 with SAR 6bn toplinee building on a strong 9M performance and surpassing pre- pandemic levels 27#28الحكير ALHOKAIR Fashion Retail Financials أزياء التجزئة Q3-FY22 and 9M-FY22#29Income Statement Q3-FY22 and 9M-FY22 SAR Million Revenue Cost of Revenue Gross Profit Q3-FY21 1,350 Q3-FY22 Change y-o-y 9M-FY21 9M-FY22 Change y-o-y 1,466 8.6% 3,100 4,528 (1,192) (1,222) 2.5% (3,134) (3,719) 46.1% 18.7% 157 245 55.3% (33.4) 809.5 Gross Profit Margin 11.7% 16.7% 5.0 -1.1% 17.9% 19.0 Selling and Distribution Expenses (28) (52) 84.1% (109) (142) 30.5% General and Administrative Expenses (88) (94) 7% (207) (264) 27.7% Impairments 10 -100% (19) -100% Other operating expense (30) (11) -61.4% (71) (32) -55% Depreciation and Amortization (74) (37.8) -48.7% (228) (141) -37.9% Other Income (loss), net 34 47 38.1% 232 110 -52.5% Operating Income Operating Income Margin (18) 96 - (434) 340 -1.3% 6.5% 7.9 -14.0% 7.5% 21.5 Financial Charges (83) (57) -30.8% (275) (200) -27.2% Share of loss of associates (1) (4) 252.1% (1) (4) 252.1% Profit before Zakat and Tax (102) 34 -133.7% (710) 136 Zakat and Income Tax (26) (18.4) -29.5% (52) (53) 3.5% Net Profit for the Period (128) 16 (762) 83 Net Profit Margin -9.5% 1.1% 10.6 -24.6% 1.8% 26.4 Attributable to: Shareholders of the Company Non-Controlling Interest Earnings per Share Basic and Diluted (0.61) 0.08 (129) 17 - (753) 85 1 (0.8) (9) (3) -68.6% 0.41 (3.59) Pre-IFRS 16 EBITDA EBITDA Margin 10 0.7% 102 6.9% 936.4% (372) 369 6.2 -12.0% 8.2% 20.1 Fawaz Abdulaziz Alhokair Co. Investor Presentation 29#30Receivables from Disposal of Subsidiaries / Brands Balance Sheet Q3-FY22 SAR Million Assets Property, Plant and Equipment Right-of-Use Assets Goodwill and Intangible Assets Investment Property Equity-accounted investees Other investments Total Fixed Assets Inventories 31 December 2021 31 March 2021 Change 1,338 1327 1% 3,182 3,402 -6% 1,140 1,111 3% 2 2 0% 3 3 -3% 372 300 24% 6,036 6,145 -2% 1,168 1,152 1% Advances, Deposits and Other Receivables 803 471 71% Prepayments, Rentals and Insurance 35 48 -27% Receivables from Disposal of Subsidiaries / Brands 75 -100% Cash & Cash Equivalents 219 468 -53% Total Current Assets Total Assets Equity & Liabilities Share Capital 2,225 2,213 1% 8,261 8,359 -1% 2,100 2,100 0% Reserves (Statutory, Foreign Currency and Fair Value) (495) (511) -3% Accumulated Losses (952) (1,038) -8% Equity Attributable to the Shareholders of the Company 653 552 18% Non-Controlling Interest (103) (100) 3% Total Equity 550 452 22% LT Loans and Borrowing Lease Liabilities Post-Employment Benefits Trade Payables Zakat & Tax Liabilities Lease Liability current portion ST Loans and Borrowings Total Current Liabilities Total Liabilities Total Equity & Liabilities 2,304 -100% 2,819 2,838 -1% 115 110 5% Total Non-Current Liabilities 2,935 5,253 -44% 1,230 1,016 21% 29 16 81% 580 803 -28% 2,938 820 258% 4,776 2,655 80% 7,711 7,907 -2% 8,261 8,359 -1% Fawaz Abdulaziz Alhokair Co. Investor Presentation 30#31Appendix#32Operational Developments#33Our operational upgrade strategy 01 Portfolio optimization Optimize store network G Exit weak/non-performing brands Increase revenue per SQM Expand portfolio - unique brand experience 02 Operational excellence IT, finance and other optimization initiatives Revamp inventory and supply chain management processes Launch shared service center Dispose of non-core assets Progress update Closed 139 retail stores in 9M-FY22, 63 stores opened. Net decrease of 76 stores ■ 39 F&B stores opened, 18 closed. Net increase of 21 outlets. - During 9M-FY22, 10 brands were closed while 6 new brands* were added bringing our total brand count to 85 ■ The Subway Master Franchise Agreement concluded in Q3- FY22 will result in over 145 new stores in the next 6 years *Brands added to brand count and financial statements Fawaz Abdulaziz Alhokair Co. Progress update Extensive gap assessment of the IT department to support other key initiatives: Oracle v16 Implementation, Managed Services Provider, and Customer Service and Loyalty Program Ongoing Engagement with advisors to deliver transformation program addressing price sensitivity, inventory, zero-based cost optimization and organizational structure ■ Outsourced inventory count to achieve maximum accuracy and costs savings Assessing further cost optimization through detailed analysis of staff cost, rental and utilities ■ Shared Service Centre first phase now live in Egypt with other centers set to go live in H2, resulting in material costs savings from FY23 onwards Investor Presentation 33#34Our Operational Upgrade Strategy 03 Building a lifestyle brand New and differentiated brand identity Grow F&B network Stores roll-out for new brands Launch loyalty & CRM program 04 Commitment to digital Launch "Buy Now Pay Later" for new brands Launch customer service center Enhance Vogacloset portfolio FAS Finance Progress update ■ 85 brands in portfolio, excluding newly signed agreements ■ Store openings for new brands - Alo Yoga, and Flying Tiger: First of 5 planned Alo yoga stores opened, while first Flying Tiger store has opened in February; more store openings across the Kingdom are in the pipeline Key brand acquisitions - Fnac Darty: Locations for Fnac Darty identified Acquisition of Subway and Secrets franchise successfully completed - with 20 Subway stores planned in the coming 24 months, and 2 Secrets branches to open in FY23 Conclusion of cross selling agreement with Cinnabon (previously with Seattle's Best Coffee) at one of the leading QSR in the Kingdom Fawaz Abdulaziz Alhokair Co. Progress update " ◉ Ongoing integration of Alhokair brands on Vogacloset with 51 brands now live supported by optimized marketing Development of 8 KSA monobrand sites for launch in Q1-FY23 underway ■ Launched Decathlon online platform in KSA ■ Buy Now Pay Later launched on Aleph and Aldo ■ Introduction of iPod sales across entire Inditex portfolio ■ Aldo Application under development for KSA and 3 international sites Preliminary approval from the Saudi Central Bank to establish FAS Finance ■ Investor Presentation 34#35Supplementary Information#36Return to parent slide Intensive balance sheet restructuring Alhokair continues to rationalize inventory balances. Shrinkage and ageing provisions to be in line with guidance of c.1-2% of sales Phase Q4-FY2020 Q1-FY2021 Q4-FY2020 Q1-FY2021 Q2-FY2021 Target Asset impairments Mark to market - Legacy ageing stock provisions I Income statement impact SAR 239.4 million SAR 702.7 million Accumulated shrinkage - 35% of no. of stores SAR 124 million Q3-FY2021 Accumulated shrinkage - 75% of no. of stores SAR 91.5 million Q4-FY2021 Accumulated shrinkage – 95% no. of stores SAR 56,9 million Q1-FY2022 Accumulated shrinkage - 100% of no. of stores SAR 20.0 million Q2-FY2022 Accumulated shrinkage & Ageing SAR 19.1 million Q3-FY2022 Fawaz Abdulaziz Alhokair Co. Accumulated shrinkage & Ageing Investor Presentation SAR 24.7 million 36#37Debt management in focus Actively addressing our capital structure to boost liquidity position and operational / strategic flexibility Summarized credit metrics SAR million Mar'21 Dec'21 SAR 186 million of YTD % change 9M-FY22 financial debt paid down YTD Total Interest-Bearing Debt 3,124 2,938 -6% charges down 27% y-o-y Cash Position 468 219 -53% Net Debt 2,656 2,719 2% The successful capital alteration will allow Alhokair to renegotiate the financial covenants and ultimately regain full compliance with covenants by FY 2023 Fawaz Abdulaziz Alhokair Co. Investor Presentation 37#38Strengthening our corporate governance An ongoing governance and leadership journey Board of Directors ■Refreshed board with a healthy balance of skills & experience ■ Four independent NEDS appointed in August 2020 Executive management ■ Strong executive team delivering on a clear strategy ■ Recent appointments strengthen competitive advantage Name Fawaz Abdulaziz Alhokair Classification Appointed Name Position Chairman Aug 2020 Marwan Moukarzel* CEO (non-executive) Ahmed Belbesy CFO Omar Abdulaziz Almohammady* Deputy Chairman July 2017 Salim Fakhoury CCO (non-executive) Faisal Younes GM F&B Abdulmajeed Abdulaziz Alhokair* Non-executive 2006 Mohamed Al-Shammari COO Eid Faleh Alshamri Independent Oct 2019 Hassan Al Redha Head of Marketing Appointed 2019 2020 2021 2021 2020 2021 Khalid Waleed Alshakhsheer Independent Aug 2020 Abdulmajeed Abdullah Albasri* Non-executive Aug 2020 Executive Committee Established to promote sound Corporate Governance. Mohamad Rafic Mourad Non-executive Jan 2022 ■ Oversight on management execution of Board initiatives. Basem Abdullah Alsallom Ahmad Saleh Alsultan Independent Independent Aug 2020 Aug 2020 ■ Alignment of strategy implementation Ensuring timely decision making *Executive Committee members Fawaz Abdulaziz Alhokair Co. Issued our first Corporate Governance Regulation Investor Presentation 38#39Vogacloset: value accretive for Alhokair Strengthening our omnichannel experience to extend our leadership position بية Transition to lifestyle retailer ■ Omnichannel offering ◉ Mitigate risk, gain market share High-growth segment Unique value proposition for partners ■ Platform for future loyalty and financing products E-commerce arm ■ Proven leadership Additional brands Integration of brand portfolios ☐ Economies of scale Capturing opportunity Fawaz Abdulaziz Alhokair Co. Investor Presentation % Positive financial impact ■ Profitable player ☐ Top-line growth Potentially high-growth investment ■ Market upside potential Efficiency and synergy ■Low operational risk, inventory risk- free 39#40Vogacloset: an enriched, integrated ecosystem BACK-END MERCHANDISING SYSTEM Data driven sorting and recommendation engine BACK-BONE OPERATING SYSTEM • Seamless, real time- communication • Virtual warehouse stock management MULTI-CHANNEL COMMUNICATION SMS Email - Calls ↓ Logistics carriers Brand suppliers Fawaz Abdulaziz Alhokair Co. FRONT-END فوغا كلوسيت VOGACLOSET III Vogacloset Brands AlHokair Brands Tenant Brands FULL PRODUCT INFORMATION MANAGEMENT SHOP-FRONT SYSTEM Speed optimised browsing interface Multilingual INTERFACE Desktop Mobile application Visitors browse full catalogue Place order at Vogacloset Investor Presentation POST SALES UNMATCHED CUSTOMER SERVICE A unique omnichannel experience for MENA customers Bilingual CRM Free returns picked up by Vogacloset Free returns in stores Customer buys online, picks up in store Vogacloset collects from retailer and delivers فوغا كلوسيت فوغا كلوسيت VOGACLOSET Place order at retailer VOGACLOSET Retailer fulfillment BACK-END 40#41Inventory optimization action plan | ongoing Systems Streamlined three different ERPs into one comprehensive ERP (Oracle V16) for all operating countries. Enables timely visibility on inventory levels for all countries ■ Facilitates decision making process Provides detailed analysis on terminal stock Allows timely update of physical count Implemented CCTV surveillance across all stores. Policies & Procedures Developed and drafted with PwC updated policies and procedures including workflows to all touchpoints. Drafted and implemented shrinkage policy defining accountability of stock shortage allowing maximum exposure of 1% of sales FY21-22 target to perform bi-annual physical count Revisited ageing policy and procedure with target implementation by Q2 FY22 Logistics Consolidated three different warehouses into one single location Currently implementing WMS in the new location ■ On target to close the Dubai warehouse by end of March. Digitalization/Technology Post ERP stabilization, the Company will explore further enhancements by implementing latest technology: ■ RFID ■ Auto replenishment ■ Efficient stock-taking using dedicated applications ■ OTB enhancement Revisiting agent policies Fawaz Abdulaziz Alhokair Co. Investor Presentation 41#42Return to parent slide Alhokair Brand Portfolio - 85 Brands* F&B-14- Coffee Place CINNABON Caffé Concerto LONDON CABANA ماهاينز كافيه ازال مذاق على الفخار Molten Chocolate Cafe CAFFE شاورما SHAWARMA ERINGAN Sütis AH DUN crepe affaire V Güven 451 Seattle's Best Coffee Accessories-> ALDO Accessories bizou MONSOON BIJOU BRIGITTE ACCESSORIZE PARFOIS lam High Street. 1-3. Massimo Dutti UTERQÜE ☑ MACHKA GAP Fast Fashion-26- Bershka PULL&BEAR OLD NAVY SAN FRANCISCO, CALIFORNIA Lingerie- и бенга la Vie en Rose 5. women'secret Marie France ( Sfera) undiz Terranova°* Estradivarius MANGO ZABA Lig LIPSY LONDON M&S EST. 1884 FG4 ΟΧΧΟ TWIST Wallis Desigual. adL jacadi Beauty & Makeup - 7- BOBBI BROWN ESTEE LAUDER Electronics. Caleph KIKO MILANO NATURE REPUBLIC flormar smashbox SKINFOOD since 1957 Economy-5. LC WAIKIKI lefties F&F NEWYORKER Sports DECATHLON ala -२. Kidswear. Okaïdi OBAİBİ yoga PANÇO mayoral 6. ZIDDY. * These brands are present in international markets only ***Brand count as of December 2021. Count excludes newly signed agreements (Fnac Darty. Flying Tiger, Subway & Secrets] Fawaz Abdulaziz Alhokair Co. PLACE LONDON SIX SPRINGFIELD Man & Woman QUIZ OYSHO U.S. POLO ASSN. SINCE 1890 IPEKYOL GERRY WEBER IKKS SERGENT Major kind) de ge TAO TAPE À L'OEIL ORIGINAL IDE Footwear-7 ALDO CHARLES & KEITH PUBLIC DESIRE CALL IT SPRING Clarks. Investor Presentation Pedro NINE WEST Homewear ZARA HOME 222 42#43Adjusted key profitability measures Return to parent slide Comparable periods are clouded with excessive or insufficient inventory provisions & write-offs, one-off credits, VAT & Zakat provisions. Adjusting for these while accounting for normalized inventory provision at 1.5%, profitability metrics are better indicators of true operating performance Adjusted Gross Profit Margin (%) 16.3% 16.9% 13.3% 13% 1.4% 19.2% 17.0% 16.9% 18.9% Q3-FY20 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Fawaz Abdulaziz Alhokair Co. Investor Presentation 10.1% 17.8% 9M-FY20 9M-FY21 9M-FY21 43 33#44Adjusted key profitability measures Return to parent slide Comparable periods are clouded with excessive or insufficient inventory provisions & write-offs, one-off credits, VAT & Zakat provisions. Adjusting for these while accounting for normalized inventory provision at 1.5%, profitability metrics are better indicators of true operating performance Adjusted EBITDA Margin (%) 6.8% 3.9% 1.6% -54.2% 17.7% 8.6% 8.4% 7.7% 3.8% Q3-FY20 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Fawaz Abdulaziz Alhokair Co. Investor Presentation 8.3% -5.5% 9M-FY20 9M-FY21 9M-FY21 44#45Adjusted key profitability measures Return to parent slide Comparable periods are clouded with excessive or insufficient inventory provisions & write-offs, one-off credits, VAT & Zakat provisions. Adjusting for these while accounting for normalized inventory provision at 1.5%, profitability metrics are better indicators of true operating performance Adjusted Net Profit Margin (%) 0.6% -1.6% -3.7% -25.8% 1.9% 2.4% 1.4% 1.9% -0.6% -64.6% Q3-FY20 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Fawaz Abdulaziz Alhokair Co. Investor Presentation -12.2% 9M-FY20 9M-FY21 9M-FY21 45#46Investor Relations [email protected] Thank you