Summary of 3i Group's Capital Markets Day - March 26, 2026 Company Overview - **Company**: 3i Group plc - **Key Subsidiary**: Action - **Event**: Capital Markets Day for Action's 2025 results Core Industry Insights - **Industry**: Non-food retail sector in Europe - **Market Position**: Action is one of Europe's largest non-food retail groups, known for its low prices and flexible store formats [2][3] Key Financial Highlights - **Net Sales**: Increased by 16% to EUR 16 billion in 2025, driven by store expansion and like-for-like sales growth of 4.9% [4][5] - **Operating EBITDA**: Rose by 14% to EUR 2.367 billion [5] - **Store Openings**: 384 new stores added in 2025, averaging more than one store per day [5][6] - **Customer Growth**: Average weekly customer visits increased to 21.6 million, up from 18.7 million in 2024 [11] Strategic Developments - **Market Expansion**: Entered two new markets (Switzerland and Romania) in 2025, with plans to open in Croatia and Slovenia in 2026 [14][46] - **Store Network**: Total of 3,302 stores by year-end 2025, with a potential for 4,000-4,650 additional stores identified [43][44] - **Supply Chain Investments**: Expanded supply chain with three new distribution centers in Germany, Poland, and Italy [20] Competitive Landscape - **Market Challenges**: Intense competition, particularly in France, with a noted slowdown in consumer spending impacting like-for-like sales growth [9][10] - **Price Positioning**: Action maintains a strong relative price position, with ongoing price reductions to reinforce competitiveness [17][18] Sustainability Initiatives - **Environmental Goals**: Reduced greenhouse gas emissions by 11% compared to 2024, aiming for a 75% reduction by 2030 [21] - **Sustainable Sourcing**: Over 99% of timber, cotton, cocoa, coffee, and palm oil used in products are sustainably sourced [22] Employee Engagement - **Workforce**: Employed over 84,000 colleagues, with a focus on career development and employee satisfaction [25][26] - **Engagement Score**: Achieved a record engagement score of 78%, reflecting high job satisfaction and motivation among employees [28] Future Outlook - **U.S. Market Entry**: Plans to enter the U.S. market by 2027 or early 2028, starting with around 20 stores in North Carolina, South Carolina, and Georgia [48][49] - **Investment Plans**: Estimated investment of EUR 350 million to EUR 400 million for U.S. expansion, larger than typical European entries due to market size [50] Conclusion - **Growth Strategy**: Action's consistent strategy focuses on low prices, quality products, and sustainable practices, positioning the company for continued growth in Europe and the U.S. [32][51]

Core Viewpoint - Wesfarmers' shares declined significantly due to a weaker-than-expected start to the second half of the fiscal year, as high living costs continue to impact consumer spending [1] Financial Performance - The company reported a half-year net profit after tax of A$1.60 billion, exceeding the Visible Alpha consensus estimate of A$1.56 billion and up from A$1.47 billion the previous year [1] - Bunnings recorded earnings growth of 5% to A$1.39 billion (approximately $978.42 million), while Kmart saw over 6% growth to A$683 million [1] - WesCEF, which includes chemicals, energy, fertilizer, and Covalent Lithium, achieved an 18% growth in first-half earnings [1] Market Expectations - Early second-half trading showed sales growth at Bunnings tracking its first-half growth of about 4%, while Kmart was ahead of its 3.2% growth from the previous six months [1] - The company fell short of market expectations for second-half growth in both Bunnings and Kmart [1] Consumer Sentiment - Australian households are tightening their spending due to persistent inflation and higher operating costs, affecting retailers' earnings despite steady traffic across key divisions [1] - Wesfarmers noted that cost-of-living pressures are impacting many households unevenly, with recent interest rate rises and inflation uncertainty affecting consumer sentiment [1] Dividend Announcement - The company declared an interim dividend of 102 Australian cents per share, an increase from 95 Australian cents per share last year [1]