Investor Day - Supercharging the Store Rollout

Research evidence excerpt

Investor Day - Supercharging the Store Rollout

Australia | Discretionary Retail

SUL EquityJuneResearch11, 2026

ESTIMATE CHANGEInvestor Day - Supercharging the Store Rollout

Two surprises were higher unallocated costs due to project spend & RATING HOLD

plans to accelerate store rollout. rebel margins have declined for 5 years PRICE AUD12.35^

despite stagnant store count, which makes us cautious on plans for 5% PRICE TARGET | % TO PT AUD12.00 | -3%

space CAGR. Auto & BCF are well positioned but all SUL's categories are 52W HIGH-LOW AUD20.20 - AUD10.08

competitive. Valuation undemanding but weak consumer backdrop & cost FLOAT (%) | ADV MM (USD) 65.6% | 4.79

inflation leave us cautious on the near term outlook. MARKET CAP AUD2.8B | $2.0B

TICKER SUL AU

Targeting mid to high single-digit PBT CAGR through to FY31 - Presentation articulated a ^Prior trading day's closing price unless otherwise noted.

'financial goal' to deliver mid to high single-digit PBT growth over 5 years. Individual drivers

were not broken out, but Management suggested growth will be largely sales driven. Target

is broadly consistent with current consensus (VA), which imply c. 7.2% PBT CAGR from the FY (Jun) CHANGE TO JEFe JEF vs CONS

FY26 base. Our estimates are below this to reflect our more cautious view on the consumer 2026 2027 2026 2027

backdrop (JEFe: c. 4% CAGR). Fig 1 REV NA NA NM +1%

EPS NM <-1% +1% -7%

Higher than expected unallocated costs due to project spend - Guidance suggests

unallocated costs of c. $60m p.a. from FY27-29 (incl. project spend of c. $30m). This is

2026 (AUD) 1Half 2Half FY

significantly higher than VA consensus of c. $43m and implies a c. 5% Group PBT downgrade.

EPS -- -- 0.91

Project Ignite is a "people-led, technology-enabled program" via staged migration of ERP