#1endeavour group F23 Results Investor presentation August 2023#2Disclaimers This presentation is dated 16 August 2023 and unless stated otherwise is current as at that date. This presentation contains summary and general information about Endeavour Group Limited and its controlled entities (together, the Group or Endeavour Group), and Endeavour Group's activities as at the date of this presentation. It is sourced from and should be read in conjunction with Endeavour Group's other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, available at www.asx.com.au. Information about Endeavour Group's financial performance is current as at the last announcement provided to the Australian Securities Exchange. This presentation has not been audited in accordance with Australian Auditing Standards. This presentation contains certain non-IFRS measures that Endeavour Group believes are relevant and appropriate to understanding its business. Refer to Endeavour Group's 2023 Financial Report issued on 16 August 2023 for further details. This presentation is for information purposes only and is not a prospectus or product disclosure statement, financial product or investment advice or a recommendation to acquire Endeavour Group shares or other securities. It has been prepared without taking into account the objectives, financial situation or needs of any person. Before making an investment decision, prospective investors and investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Past performance is no guarantee of future performance. No representation or warranty, expressed or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, no Endeavour Group company, or their respective directors, employees or agents, nor any other person accepts liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including, without limitation, any liability from fault or negligence. This presentation may contain forward-looking statements including statements regarding an intent, belief or current expectation with respect to Endeavour Group's business and operations, market conditions, results of operations and financial condition, specific provisions and risk management practices. When used in this presentation, the words 'forecast', 'target', 'estimate', 'plan', 'will', 'anticipate', 'may', 'believe', 'should', 'expect', 'intend', 'outlook', 'guidance' and similar expressions, as they relate to Endeavour Group and its management, are intended to identify forward-looking statements. Forward looking statements involve known and unknown risks, uncertainties and assumptions and other important factors that could cause the actual results, performances or achievements of Endeavour Group to be materially different from future results, performances or achievements expressed or implied by such statements. Profit or loss, balance sheet and cash flow information presented in this presentation is consistent with the information disclosed in Endeavour Group's 2023 Financial Report issued on 16 August 2023. The release of this presentation has been authorised by the Board of Directors. Endeavour Group Limited ACN 159 767 843 | 26 Waterloo Street, Surry Hills, NSW, 2010 endeavour group 2#3Acknowledgement of country alb Artwork: Celebration Place by Riki Salam (Mualgal, Kaurareg, Kuku Yalanji) endeavour group 3#4Overview Steve Donohue, CEO endeavour group 4#5We're pioneering, entrepreneurial and always innovating. endeavour group We connect people through our products and venues, enabling great experiences and positive, memorable moments. Creating a more sociable future, together We do the right thing - build our businesses sustainably, act responsibly and embrace technology. We work as one team to contribute to the communities we serve and collaborate with our partners to help build a better industry. 5 сл#6Our Strategy: bringing our Purpose to life to deliver value One team living our purpose and values Highly engaged team Purpose driven culture Positive and sustainable imprint Continued progress in sustainability journey Focused on responsibility and compliance Leading customer offer and brands Unbeatable value and convenience Unrivalled customer engagement Meaningful omnichannel experience Producing award winning products An efficient end-to-end business Group wide optimisation program mitigating rising cost pressure Sustainable margin expansion supported by Advanced Analytics Accelerating growth Accelerating growth through prioritised capital investments Leveraging Group capabilities to unlock value of our network endeavour group 6#7F23 Results > Strong financial performance demonstrates the resilience and stability of our businesses > Accelerating growth through prioritised capital investments Sales EBIT NEST KNOB CREEK 4101- 101 Evan Williams EST ALH Hotels Head Onl $11.9b +2.5% $1,023m +10.7% > Group wide optimisation program mitigating inflation Profit after tax $529m +6.9% Earnings per share 29.5¢ +6.9% > Continued progress in sustainability, focused on responsibility Dividend per share 21.8¢ +7.9% › Positive trading momentum ROFE 11.8% +35bps endeavour Note: All growth rates in this presentation are calculated against F22 unless otherwise stated group 7#8Retail > Sales momentum improved during F23 and continues Customers continuing to preference new and premium products > Leading customer metrics, supported by unique and unbeatable value propositions > Our brands span the spectrum of customer occasions Sales EBIT 200 coteros CAT $9.9b -1.8% $658m -1.2% EBIT margin 6.6% +4bps 4 Year Sales CAGR¹ 4.0% F24 First 6 weeks Sales +2.5% endeavour 1. Based on Normalised 52-week Equivalent F19 results sourced from the data used in the respective Woolworths Group Limited Annual Report, adjusted to exclude consolidation adjustments not applicable to Endeavour Group standalone. group AWS 8#9Dan Murphy's WINE CHANT A Destination of choice for value, range and service F23 Highlights JOIN TODAY. BE REWARDED EVERY DAY. MEMBERS SCLUSIVE PRICE CHECK OFFERS EVENTS & PRIORITY ACCESS For exclusive offers and VIP experiences. As well as Member's Price Check where we find, check and beat competitors' prices. Look in-store for the gold Member offers. My Dan's MEMBERSHIP JOIN FOR FREE SCAN ME Loved brand with a highly engaged customer base Nobody beats Dan Murphy's Lowest Liquor Price Guarantee Avych paks Subvumelues Growing and innovative store network Large and profitable eCommerce business Market leading customer +54 NPS Delivering +19 ahead of more value metrics nearest external competitor ~2m In-store price beats Growing network +8 to 266 Stores Personalised ~95m Innovative formats Highly engaged 5.2m customers Active My Dan's members Resonating 79% Australia's THE Dan Murphys CELLAR +2,025 omnichannel Customer experience interactions with personalised content Leveraging 60% with customers My Dan's scan largest rate (F22: 70%) range New product lines store of online sales network via Pick-up in-store 'Dan Murphy's helps you to drink better' 9#10BEER SPIRITS BW S WINE VONKA&LIQUEURS GIN&L Delivering value and convenience F23 Highlights Heres to you FOR HOWEVER YOU ROLL Doing drinks your way The most convenient store network Largest network 1,435 of liquor stores Stores HELOVE LOCALS Order Pick Recycling Station WHAT'S ON OAKRIDGE AKRIDGE Fresh and innovative store formats renewals Digitally enhanced customer shopping experience Store network facilitating multiple express delivery options Increased 'Refreshingly Always 95 Brand BWS' presence Brand Relaunch improving in-store experience Continuing expansion +18 Resonating Growing Innovative with Gen Z Net new stores in F23 brand preference and 73 Drive-thrus 642 Supermarket convenient 202 Hotels formats 518 Local 'BWS does drinks your way' 400,000 active users of BWS app during summertime 'cooler' campaign 10#11Pinnacle Drinks Innovating for our customers F23 Highlights Wine RIDDOCH COONAWARMA RIDDOCH COONAWARRA AWARDS SOUND GOOD BUT TASTE EVEN BETTER. THE PASTORALIST WINNER OF THE INTERNATIONAL CABERNET SAUVIGNON TROPHY 2023 INTERNATIONAL WINE CHALLENGE. how Dan Murphy's OWO Get the tach DrinkWise.org.au Trend leadership, quality and innovation Creating choice for our Retail and Hotels customers 730+ Innovative, owned 7/10 Retail customers and exclusive master brands purchased a Pinnacle product in Investing in brands and production CAPE MENTELLE MARGARET RIVER SHINGLEBACK Brand acquisitions round out Paragon portfolio Expanding industry partnerships 300+ Supplier partnerships F23 $1.7b Retail Sales of Pinnacle products 347 Pinnacle products available in our Hotels 781 Pinnacle product awards, including 12 wine trophies 'Pinnacle Drinks crafts brands people love' 550 New Pinnacle products launched in F23 DORIEN ESTATE Dorrien winery upgrade 20+ Export partnerships into key target markets 11#12Hotels > Hotels thriving as customers embrace value and social occasions › Robust post-pandemic recovery boosted by renewals and acquisitions Sales $2.0b +31.0% > Full service offering restored including EBIT $428m +35.9% return of entertainment EBIT margin 21.6% +78bps > Strong momentum in initial weeks of F24, led by Food and Bars 4 Year Sales CAGR¹ 4.8% F24 First 6 weeks Sales +4.6% endeavour 1. Based on Normalised 52-week Equivalent F19 results sourced from the data used in the respective Woolworths Group Limited Annual Report, adjusted to exclude consolidation adjustments not applicable to Endeavour Group standalone. group 12#13ALH Hotels Creating pub experiences locals love F23 Highlights HILDROOT CROWS NEST $200 $100 E $50,000 Creating memorable moments for our guests At the centre of socialising 86,000 Meals on Mother's Day Reinvigorated ~172,000 Expanding and improving our network Improving our 46 Enhancing and leveraging Group capabilities Leading in Responsibility Expanding our network 11 new hotels (+15 Retail Activity based stores) rostering F24 Optimisation program Launch of Player Protect entertainment network to Tickets to offer events in F23 unlock value Building digital WIP Renewals pub+ our customer experience bespoke Hotel customer app Continuously 3,000 training our teams Team members 'ALH Hotels, make it your local' completed Responsible Gambling training 13#14Our Hotels investment strategy delivers growth and diversification of earnings Renewals Acquisitions Redevelopments Blue Mountain THE TOWER > Restoring post period of underinvestment > Increasingly focused on Food & Bars and Accommodation > Beginning to leverage Group renewal capabilities 46 Renewals completed in F23 endeavour group > $89m investment to acquire 11 hotels with 15 associated Retail stores > Diverse revenue streams ~$50m in annualised Hotel sales and ~$50m of Retail sales On track to deliver ROI >15%¹ > The Brook Hotel reopened in May > Currently top 10 F&B Hotel in portfolio > New Dan Murphy's generating >5x uplift in Retail sales² > Accommodation opening in Q1F24 Average weekly EBIT up >500% 1. Return on investment is calculated as Year 2 EBIT as a percentage of invested capital. Invested capital is total capital expenditure, net of depreciation 2. Average weekly sales uplift 14#15Group optimisation program delivering material cost savings GO endeavour F22 $30m savings delivered Created the Retail GO framework and delivered initial Retail benefits Sophisticated rostering and labour planning program Simplified in-store processes and routines F23 $60m savings delivered Evolved into endeavourGO, a Center of Excellence, to cover Hotels and Group Services Ongoing sophisticated workforce planning Continuation of in-store processes simplification F24-F26 $200m+ savings target Technology enabled Group wide program, targeting efficiencies across the end to end value chain 田 田田 田田田 Retail GO: Building robust and cross-functional retail capabilities Hotel GO: Leveraging learnings from Retail to unlock savings in Hotels eCommerce delivery Optimisation endeavour group Optimisation of hotels operations and processes Group Services GO: Building our long-term Group Services strategy 15#16Progress in sustainability, focusing on responsibility > Second annual Sustainability Report released > Continuing progress against 2030 strategy, including core area of Responsibility and Community > Second Modern Slavery Statement released Player Protect Creating our positive imprint Sustainability Report 2023 Player Protect is our commitment to leading the way in responsible gaming • Evolution of the Group's holistic approach to responsible gaming in ALH • Whole-of-business framework • Covering policies, support for players in and outside the pub, information, education and pastoral care programs Includes new technology and trials in consultation with governments and regulators endeavour group 16#17Financial Results Kate Beattie, CFO endeavour group 17#18F23 Financial result highlights Financial results Cash and capital foundations $11.9b +2.5% YoY Sales $1,023m +10.7% YoY EBIT $529m Net Profit After tax +6.9% YOY Delivering for shareholders $767m F22: $949m 29.5C +6.9% YoY Operating cash inflow $820m Earnings per share 21.8C +7.9% YoY Debt headroom Dividend per share $510m Capital expenditure1 73.9% Full-year dividend payout ratio 11.8% +35bps YOY ROFE endeavour group 1. Excludes $310m for Victorian gaming entitlements and $32m goodwill arising from the recognition of deferred tax liabilities on acquisitions 18#19Group financial performance Contribution to EBIT from Hotels and Retail returning to normal post pandemic > Optimisation program mitigating inflation > Continued execution and investment in line with strategy > Higher finance costs reflects increased interest rates and higher average net debt > Income tax represents an effective tax rate of 31.6% $495m endeavour group +6.9% Increase in year-on-year profit after income tax (8) 113 (6) (45) (20) $529m F22 Profit after income tax Retail EBIT Hotels EBIT Other EBIT Finance costs Income tax F23 Profit after income tax 19#20Comparatives to Pre-Pandemic financial results¹ Retail F23 F19 CHANGE 4 Year CAGR Sales ($M) 9,905 8,453 17.2% 4.0% EBIT 658 538 22.3% 5.2% EBIT to Sales (%) 6.6% 6.4% +28 bps Hotels F23 F19 CHANGE 4 Year CAGR Sales ($M) 1,979 1,640 20.7% 4.8% EBIT 428 351 21.9% 5.1% EBIT to Sales (%) 21.6% 21.4% +22 bps > First uninterrupted financial year of trading since F19 > Strong growth in both segments › Margin expansion in Retail driven by investment in capabilities > Further opportunity in Hotels endeavour 1. Based on Normalised 52-week Equivalent F19 results sourced from the data used in the respective Woolworths Group Limited Annual Report, adjusted to exclude consolidation adjustments not applicable to Endeavour Group standalone. group 20#21Retail financial performance › Pandemic cycling impacting year on year comparatives › Gross profit margin strength continued › Effective cost management, with optimisation program mitigating inflationary pressures > Continuing to invest in customer experience and network expansion > EBIT margin maintained Sales ($m) EBITDA ($m) endeavour group F23 F22 CHANGE 9,905 10,086 (1.8%) 954 944 1.1% Depreciation and amortisation ($m) EBIT ($m) (296) (278) 6.5% 658 666 (1.2%) Gross profit margin (%) 23.8% 23.2% +53bps Cost of doing business (%) 17.1% 16.6% +49bps EBIT to sales (%) 6.6% 6.6% +4bps Return on average funds employed (%) 15.9% 16.8% -94bps 21#22Hotels financial performance > Swift recovery following pandemic restrictions > Sales composition rebalanced with Food, Bars and Accommodation rebounding > Cost profile reflects return to full operations. and impacts of inflation > Depreciation & Amortisation includes uplift due to Victorian Gaming entitlements > Sales leverage primary contributor to reduced CODB rate and EBIT margin growth Sales ($m) endeavour group F23 F22 CHANGE 1,979 1,511 31.0% EBITDA ($m) 705 561 25.7% Depreciation and amortisation ($m) (277) (246) 12.6% EBIT ($m) 428 315 35.9% Gross profit margin (%) 84.1% 85.1% -94bps Cost of doing business (%) 62.5% 64.2% -173bps EBIT to sales (%) 21.6% 20.8% +78bps Return on average funds employed (%) 10.2% 8.0% +213bps 22#23Capital expenditure $32m $48m $6m $52m Retail: $262m¹ $61m $48m $15m Delivering returns ROFE 11.8% (+35 bps vs F22) Stay In Business Renewals Technology Transformation endeavour group 1. 2. $11m $18m $52m $72m Hotels: $248m² $95m Pinnacle Network Expansion Property/ Redevelopment Digital, Data & eCommerce Excludes $6m goodwill arising from the recognition of deferred tax liabilities on acquisitions Excludes $310m for Victorian gaming entitlements and $26m goodwill arising from the recognition of deferred tax liabilities on acquisitions 23#24Our 'One Endeavour' transition to standalone technology capabilities continues Strategic Rationale Transition and simplify technology landscape as a foundation for growth and innovation > Modern, fit-for-purpose, lower cost technology solutions > One common set of systems across businesses enabling agility, efficiency and automation Best in class data platform enabling insight and future growth, including Al Contemporary eCommerce platform delivering faster cheaper development and better customer experience We will continue to update the market as we progress the program Key enabler of Group Optimisation benefits Current capital capacity sufficient to support program funding Progress update Completed and Inflight Spend Management F23 F24 F25+ Completed Property Lease Management One Team - People Systems Commerce / Order Management System (OMS) Service transformation In Design phase ERP - Finance (ERP) Discovery Design End-to-End Stores/Venues Discovery Design Operating Costs Capital expenditure $26m $40 - 50m $15m $35 - 55m endeavour group 24#25Cash and Net Debt Net debt of $1.9b increased by $706m, of which $237m was non-cash > Bank debt rose $465m with the normalisation of tax payments and investment in working capital Non-cash debt increased by $237m with the renewal of Victorian Gaming entitlements 1,221 141 261 67 Operating cash inflows of $767m and a cash realisation ratio of 70% > Below prior year due to the normalisation of income tax paid and working capital Net Debt F22 Tax catch up Trade Working Other net draw payments Capital down of debt (one off) facilities endeavour group 237 1,927 1,690 F23 Net Debt (excl Non- Cash debt) Liability for Victorian Gaming Entitlements F23 Net Debt 25#26Funding to deliver strategy Long-term debt facilities in place > Healthy balance sheet consistent with investment grade credit metrics. Leverage ratio² of 3.6x Committed undrawn debt facilities of $820m plus material cash balances > Debt facilities increased by $300m and maturity profile extended > $725m of drawn bank facilities hedged at balance date (representing ~40%) Debt maturity profile ($ million)1 150 55 900 945 200 June 2024 June 2025 June 2026 June 2027 415 135 June 2028 Committed drawn Committed undrawn 1. Excludes borrowings for Victorian gaming entitlements. 2. Leverage ratio - Net debt plus lease liabilities, divided by 12-month rolling EBITDA 26#27Strong returns to shareholders Operating cash flow (high cash realisation) Targeting investment grade credit metrics Dividends 70-75% Target full-year payout ratio Sustaining CAPEX Cash and balance sheet management Growth CAPEX > Organic and inorganic growth investments Sustain the core Stay-in-business > > Technology transition Renewals/EGMs Remaining cash Deliver strong shareholder value creation Targeting > Intention to return any excess cash to shareholders Since Demerger we have delivered: > Sales growth of $289m (+2.5%) > EBIT growth of $124m (+13.8%) >ROFE of 11.8% (+66bps) > EPS growth of 19.0% > Fully franked Dividends returned to shareholders of $752m1 > Dividend yield² of 3.5% Sales ahead of market > EBIT growth ahead of sales endeavour group Sustainable shareholder value creation 1. F22 and F23 declared dividends 2. Calculated as F23 full-year dividend divided by the Group's closing share price as of 23 June 2023. 27#28F24 update, priorities and outlook endeavour group TRIVI 28#29Priorities for F24 Leading customer offer and brands Efficient end-to-end business Accelerate Growth Positive and sustainable imprint One team living our purpose and values > Continue to deliver and create meaningful omnichannel experiences, driving growth. in our core businesses Pursue disciplined cost management and optimisation that balances our short and long term ambitions Accelerate our technology transformation to unlock future optimisation and simplification opportunities Accelerate growth through prioritised deployment of capital to deliver a balance of short and long-term returns Progress our sustainability ambition, focusing on responsibility and compliance Continue to focus on our people to ensure we have the talent and capability to deliver Endeavour's strategic goals endeavour group AURES = 29#30Summary A strong F23 performance reflecting the resilience and stability of the Group with: > All businesses now trading in a stable post-pandemic operating environment > Retail delivering solid results including maintaining leading EBIT margin performance > Hotels back to full operations, with customers enjoying a full suite of hospitality offerings Customers maintaining their expenditure levels and appetite. for discovery > Disciplined cost management through group wide optimisation program Benefits of continuous investment in network renewal and expansion and enabling technology underpinning results EFES F24 outlook ONAL BEER INTERNATIONAL BEER INTERNATIONAL Customer trends showing resilience and stability thus far Retail first 6 weeks sales +2.5% YOY Hotels first 6 weeks sales +4.6% YOY WA SUDO endeavour group 30#31Q&A Steve Donohue Chief Executive Officer Kate Beattie Chief Financial Officer endeavour group HAHN BOONEYS GINGER BEER NEW FURPHY CRUSHED GRIGINAL YOUNG HENRYS 質 31#32Appendices Be endeavour group WINE MERCHANT Peter 32#33Our network 1 Key: Dan Murphy's BWS Hotels (incl clubs) Wineries Bottling facilities endeavour 1. As at 25 June 2023 group 17 54 54 5 26 147 28 19 97 39 2 3 137 424 84 390 80 325 85 85 266 +8 Dan Murphy's stores 1,435 BWS stores +18 55 354 +10 Hotels (incl. managed clubs) 1 6 Wineries +1 3 35 05 1 3 Bottling facilities 33#34Our capital allocation aligns to our strategic priorities Stay in Business Consistent with previous year; efficiencies targeted through procurement and lifecycle. management • Initiation phase for multi-year transition 'One Endeavour' (Technology transition) Renewals Network Expansion Pinnacle Expansion • Group-wide spend system implemented, enabling better spend management and analytics Progressing in flight projects (Property lease management, One team - people system consolidation, Commerce / OMS and Service transformation) • Renewed 46 hotels • Renewed 122 retail stores; Average age maintained <7 years • EGM average age 6.6 years • Added 39 (gross) new Retail stores 11 Hotel acquisitions • Acquired Shingleback of McLaren Vale and Cape Mentelle of Margaret River • Dorrien Winery investment F23 Capex¹ Targeted ROI $100m n/a $15m n/a $156m >15% $124m >15% $48m >15% Property redevelopments • Redevelopment of the Brook Hotel $24m >20% Continuing planning and feasibility for further sites, ramping up in 2024-26 Digital, data and eCommerce • Enhanced eCommerce and operational capabilities, focused on delivering improvements in on omni-channel experience in both Retail and Hotels $43m >20% • Growing advanced analytics capability supporting margin outcomes. $510m Investment strategy to deliver strong EPS growth while targeting investment grade credit metrics endeavour group 1. Excludes $310m for Victorian gaming entitlements and $32m goodwill arising from the recognition of deferred tax liabilities on acquisitions 34#35Group financial performance endeavour group $ million Sales Retail Hotels F23 F22 (52 WEEKS) (52 WEEKS) CHANGE 9,905 10,086 (1.8%) 1,979 1,511 31.0% Total sales 11,884 11,597 2.5% Profit for the period Retail EBIT 658 666 (1.2%) Hotels EBIT 428 315 35.9% Other Total EBIT (63) (57) 10.5% 1,023 924 10.7% Finance costs (250) (205) 22.0% Profit before income tax 773 719 7.5% Income tax expense (244) (224) 8.9% Profit for the period (after income tax) 529 495 6.9% EBIT Margin Retail EBIT margin (%) Hotels EBIT margin (%) Total EBIT margin (%) 6.6% 6.6% +4bps 21.6% 20.8% +78bps 8.6% 8.0% +64bps 35#36Balance sheet endeavour group F23 $ million 25 JUNE 2023 F22 26 JUNE 2022 Change Trade working capital 778 546 232 Lease assets 3,208 3,173 35 Property, plant and equipment 2,095 1,935 160 Intangible assets 4,260 3,830 430 Other liabilities (net) (731) (677) (54) Funds employed 9,610 8,807 803 Tax liabilities (net) 151 268 (117) Other (assets)/liabilities (net) (60) (54) (6) Lease liabilities 3,883 3,816 67 Net debt 1,927 1,221 706 Equity 3,709 3,556 153 Total funding and tax 9,610 8,807 803 Return on Funds Employed % 11.8% 11.4% +35 bps 36#37Cash flow endeavour group $ million F23 F22 (52 WEEKS) (52 WEEKS) CHANGE EBIT 1,023 924 99 Depreciation and amortisation expenses 573 525 48 Changes in trade working capital (261) (63) (198) Changes in assets and liabilities and other non-cash items 67 26 41 Finance costs on borrowings paid (61) (45) (16) Payment for the interest component of lease liabilities (180) (173) (7) Income tax paid (394) (245) (149) Operating cash flows 767 949 (182) Payments for property, plant and equipment and intangible assets (408) (285) (123) Payments to acquire businesses, net of cash acquired (110) (64) (46) Proceeds from the sale of equity securities 2 74 (72) Repayment of lease liabilities (280) (263) (17) Dividend paid Other Free cash flow (394) (349) (45) (4) (6) 2 (427) 56 (483) Cash realisation ratio (%) 70 93 -23pp 37#38Historical financial performance Pre COVID-19 COVID-19 COVID-19 unwind Retail H1 F19 H2 F19 H1 F20 H2 F20 H1 F21 H2 F21 H1 F22 H2 F22 H1 F23 H2 F23 Sales ($M) 4,564 3,889 4,777 4,509 5,690 4,488 5,657 4,429 5,446 4,459 EBIT 316 222 338 231 419 250 461 204 418 240 EBIT Margin (%) 6.9% 5.7% 7.1% 5.1% 7.4% 5.6% 8.1% 4.6% 7.7% 5.4% Contribution to Full year EBIT 58.7% 41.3% 59.4% 40.6% 62.6% 37.4% 69.3% 30.7% 63.5% 36.5% Hotels H1 F19 H2 F19 H1 F20 H2 F20 H1 F21 H2 F21 H1 F22 H2 F22 H1 F23 H2 F23 Sales ($M) 865 775 919 401 667 750 680 831 1,056 923 EBIT 207 144 227 -52 122 138 121 EBIT Margin (%) 23.9% 18.6% 24.7% -13.0% 18.3% 18.4% 17.8% 194 23.3% 256 172 24.2% 18.6% Contribution to Full year EBIT 59.0% 41.0% 129.7% -29.7% 46.9% 53.1% 38.4% 61.6% 59.8% 40.2% endeavour group H1 F19 - H2 F20 based on Equivalent F20 and Normalised 52-week Equivalent F19 results sourced from the data used in the respective Woolworths Group Limited Annual Report, adjusted to exclude consolidation adjustments not applicable to Endeavour Group standalone. 38#39Victorian gaming entitlement reconciliation $310m in Victorian gaming entitlements were renewed during the year, resulting in the initial recognition of a $279 million liability owing to the Victorian Government. This represents the initial value of gaming entitlements less $31 million, which was prepaid in prior years. While available for immediate use, the entitlements will be paid off over five years. $m P&L Impact F18-19 F23 F24 F25 - F27 F28 - F32 F33 Total Depreciation and amortisation Estimated Interest (27) (31) (93) (155) (4) (310) (0.6) ~(9) ~(18) ~(0.2) ~(28) expense Cash Flow Impact Deposit paid (31) Repayments of principal (42) (56) (167) (14) II Estimated Repayment of (0.6) ~(9) ~(18) ~(0.2) (31) (279) ~(28) interest Balance Sheet Impact Borrowings (237) 56 167 14 Prepayments 31 (31) Intangibles (licences) 310 310 Accumulated (27) (31) (93) (155) (4) (310) amortisation endeavour group Notes: • $31m p.a Depreciation and amortisation started from Aug 2022 ($310m over 10 years). This replaces a previous entitlement. The incremental impact to Depreciation and amortisation is ~$14m p.a. Estimated interest expense based on current interest rate (10 Year Commonwealth Bond Rate) • $31m prepayment made in F18-19 • First payment of the 5-year instalments started from June 2023 ($42m). ~$56m p.a. from F24 onwards Estimated interest expense based on current interest rate (10 Year Commonwealth Bond Rate) • First payment of the 5-year instalments started from June 2023 ($42m). ~$56m p.a. from F24 onwards 39#40Summary of forward looking statements Area Group optimisation One Endeavour Description We are targeting $200m of cost out initiatives across F24 - F26 to mitigate inflationary pressures and enable continued investment in line with strategy. The One Endeavour transformation and transition program continues in F24, with anticipated operating expenditure of $40m - $50m, and Capital expenditure of $35 - $55m, providing benefits in future years. This is allocated 70% to our Retail segment and 30% to our Hotels segment. We will continue to update the market as we progress the program. Victorian Gaming entitlements The renewal of Victorian Gaming entitlements in F23 results in: 53 Week • $31m p.a depreciation and amortisation started from Aug 2022 ($310m over 10 years). This replaces a previous entitlement. The incremental impact to depreciation and amortisation is ~$14m p.a. • In F24, the interest expense relating to the entitlements is estimated to be $9m (this is based on current interest rates) F24 is a 53 week reporting period, and our H2 F24 results will include an extra week of trading. endeavour group 40#41Comparative figures Normalised 52-week Equivalent F19 Information and Equivalent F20 Information Woolworths' Drinks and Hotels businesses were transferred to, and merged with, Endeavour Group Limited on 2 February 2020 (Restructure) and 4 February 2020 (Merger), respectively. Prior to this only the results of Endeavour Group Limited, previously known as Pinnacle Liquor Group Pty Limited, were included. To enhance comparability against pre COVID-19 periods, a Normalised 52-week Equivalent F19 period and an Equivalent F20 period are referenced. Normalised 52-week Equivalent F19 Information relates to the results of what was previously known as Woolworths' Drinks and Hotels businesses. for the 52-week period ended 23 June 2019. This information has been sourced from the data used in the F19 Woolworths Group Limited Annual Report, adjusted to include transactions to other Woolworths Group controlled entities that were previously classified as intercompany (pre Demerger) and remove the impact of the 53rd week in F19 from 24 to 30 June 2019. Equivalent F20 Financial Information relates to the results of what was previously known as Woolworths' Drinks and Hotels businesses for the full 52-week period ended 28 June 2020, rather than only after the Restructure and Merger. This information has been sourced from the data used in the F20 Woolworths Group Limited Annual Report, adjusted to exclude consolidation adjustments not applicable to Endeavour Group on a standalone basis. endeavour group 41#42Glossary Term CAGR Cash realisation ratio Cost of doing business (CODB) eCommerce EGM Free cash flow Funds employed Gaming My Dan's active member n.m. Net debt Net Promoter Score (NPS) Online penetration Return on Funds Employed (ROFE) Return on investment (ROI) Description Compound annual growth rate Operating cash flow as a percentage of Group net profit after tax before depreciation and amortisation Expenses which relate to the operation of the business Online channels including but not limited to store websites, apps and other digital platforms Electronic Gaming Machine Cash flow generated by the Group after equity related financing activities including dividends and repayment of lease liabilities Net assets excluding net debt, lease liabilities, other financing-related assets and liabilities and net tax balances Refers to the operation of Electronic Gaming Machines My Dan's active members are the number of unique members who have transacted in the last twelve months Not meaningful Borrowings less cash and cash equivalents and excluding the impact of unamortised borrowing costs A loyalty measure based on a single question where a customer rates a business on a scale of zero to ten. The score is the net result of the percentage of customers providing a score of nine or 10 (promoters) less the percentage of customers providing a score of zero to six (detractors). Online penetration is calculated as total online sales as a percentage of total Retail sales for the same time period ROFE is calculated as EBIT for the previous 12 months as a percentage of 13 month average adjusted funds employed Return on investment is calculated as Year 2 EBIT as a percentage of invested capital. Invested capital is total capital expenditure, net of depreciation endeavour group 42#43endeavour group Creating a more sociable future, together 43