Social impact: human capital

Blu Label's people remain at the heart of the Group's success. We recognise that our employees are our most valuable asset and remain committed to creating an environment where people can grow, perform and thrive. Through a culture rooted in inclusion, collaboration and shared purpose, we continue to strengthen employee experiences while enabling sustainable business performance.

The Human Capital ("HC") Annual Report for FY26 provides an overview of the progress made in advancing our people agenda during the year. Our focus remained on strengthening organisational capability through leadership development, employee development, performance enablement and employee wellness initiatives. These efforts support our ambition of building a resilient, high-performing workforce that is equipped to meet the evolving needs of the business while also looking after the wellbeing of employees.

As we reflect on the achievements of FY26, we remain focused on cultivating a workplace where employees feel valued, supported and empowered to contribute their best. By continuing to invest in our people, we are strengthening the foundation for long-term business success while reinforcing our commitment to the #AsBluWeBelong culture.

INVESTING IN OUR PEOPLE AND CULTURE: LEADERSHIP, DIVERSITY AND TALENT

Blu Label's human capital focus areas continue strengthening the Group's people and culture. In FY26, we deepened our commitment to empowering leaders, fostering inclusion and positioning Blu Label as an employer of choice:

• Developing future-ready leaders – Strengthened leadership capability through targeted development programmes and leadership interventions.
• Investing in employee development and growth – Continued investment in learning, skills development, bursaries and career growth opportunities to build organisational capability.
• Building a sustainable talent pipeline – Enhanced talent management and succession planning processes to identify and develop future leaders.
• Advancing meaningful transformation – Aligned Employment Equity initiatives with ICT sector targets while promoting a more inclusive workforce.
• Digitising the employee experience – Progressed the implementation of BluCore to enable integrated talent, learning, career and performance management practices.
• Supporting employee wellbeing and belonging – Fostering a culture that prioritises wellbeing, engagement, inclusion and a positive employee experience.

HC BUSINESS ENABLEMENT ACHIEVEMENTS

CULTURE AND LEADERSHIP:

AT BLU LABEL, WE BELIEVE THAT CULTURE AND LEADERSHIP ARE FUNDAMENTAL DRIVERS OF EMPLOYEE EXPERIENCE, ORGANISATIONAL PERFORMANCE AND LONG-TERM BUSINESS SUCCESS.

• We strengthened the link between leadership, culture and business performance by equipping leaders to create positive employee experiences and high-performing teams.
• Through ongoing leadership development, meaningful employee engagement, recognition of employee contributions and initiatives that foster connection across the Group, we continued to bring the #AsBluWeBelong culture to life.
• The BluAcademy was introduced to strengthen a culture of continuous learning across the Group, encouraging employees to take ownership of their development while supporting career growth and lifelong learning.

ATTRACTING TALENT FOR SUSTAINABLE GROWTH:

• We strengthened our Employer Value Proposition to attract and retain high-quality talent aligned to our values, culture and business strategy.
• The Group supported transformation through recruitment by aligning hiring practices to employment equity objectives and building a more diverse talent pipeline.
• We focused on future capability needs by attracting talent with critical skills and supporting long-term succession and workforce sustainability objectives.

EMPLOYEE WELLBEING:

Our employee wellbeing remained a key focus area during FY26 as we continued to strengthen our commitment to creating a workplace where employees can thrive both personally and professionally. Building on the foundations established in previous years, our approach evolved from expanding our wellbeing offering to creating greater accessibility and participation in wellbeing initiatives. Through strategic partnerships and employee-led initiatives, we sought to promote holistic wellbeing encompassing physical, financial and emotional health.

Overall, at Blu Label, employee wellbeing is more than a benefit; it's a strategic priority that helps us attract, retain and grow top talent; while living out the values that define who we are.

Blu Label remains committed to structuring and operating as a resilient, future-ready organisation, even within a leaner workforce context. We continue to focus on:

• Attracting and retaining critical skills to maintain operational excellence and competitive advantage.
• Driving a strategic people planning process that empowers the business with timely insights to make informed, skills-based decisions.
• Implementing a formalised workforce planning design to enable agility, scalability and efficiency across all business units.
• Strengthening leadership capability through a leader-led development programme, ensuring our leaders can navigate change and build future talent.
• Delivering a targeted leadership programme for top management, focused on adaptive thinking, strategic foresight and talent stewardship in a dynamic environment.

WORKFORCE PROFILE

						2026
	Female										Male
OCCUPATIONAL LEVEL	African	Coloured	Indian	White	Foreign nationals	Female total		African	Coloured	Indian	White	Foreign nationals	Male total		Total headcount
Top Management	2	2	2	2	–	8		4	1	2	27	–	34		42
Senior Management	3	1	4	8	–	16		3	4	3	28	–	38		54
Professional	20	5	8	23	–	56		12	4	17	33	6	72		128
Skilled	103	16	20	40	3	182		114	33	25	70	10	252		434
Semi-Skilled	179	19	7	10	7	222		94	13	6	7	9	129		351
Unskilled	8	–	–	–	–	8		6	1	–	–	1	8		16
GRAND TOTAL	315	43	41	83	10	492		233	56	53	165	26	533		1 025

						2025
				Female							Male
OCCUPATIONAL LEVEL	African	Coloured	Indian	White	Foreign nationals	Female total		African	Coloured	Indian	White	Foreign nationals	Male total		Total headcount
Top management	1	3	2	3	–	9		4	–	4	29	–	37		46
Senior management	2	–	3	9	–	14		4	5	5	27	–	41		55
Professional	20	5	8	26	–	59		19	5	18	37	5	84		143
Skilled	106	15	21	42	3	187		116	37	35	77	14	279		466
Semi-skilled	181	24	12	14	8	239		104	16	10	9	10	149		388
Unskilled	11	–	–	–	–	11		8	1	–	–	1	10		21
GRAND TOTAL	321	47	46	94	11	519		255	64	72	179	30	600		1 119

Proportion of black employees as a percentage of headcount:

• African male representation declined by 0.1%;
• African female representation increased by 2%;
• Coloured male representation decreased by 0.3%;
• Coloured female representation remained unchanged;
• Indian male representation decreased by 1.3%; and
• Indian female representation decreased by 0.1%.

B-BBEE SCORECARD

In FY26, Blu Label achieved a significant transformation milestone by improving its B-BBEE status from a Level 4 to a Level 3 contributor. Transformation remains a strategic priority for the Group and is integrated into our broader people, governance and sustainability agenda. We believe that meaningful transformation contributes to stronger organisational performance, enhanced innovation and long-term value creation for our stakeholders. The achievement of a Level 3 rating marks an important step in our journey, and we remain focused on maintaining and enhancing this performance through sustainable transformation initiatives that create shared value for our employees, customers, suppliers and communities. The improvement from a Level 4 to a Level 3 B-BBEE contributor was primarily driven by stronger performance in Ownership and Management Control. This achievement reflects tangible progress in advancing transformation, broadening participation in leadership and creating a more inclusive and representative organisation, while supporting long-term sustainable value creation for all stakeholders.

ELEMENT	Audited FY26	Audited FY25	Audited FY24	Audited FY23
Ownership	23.54	19.51	16.61	12.94
Management and control	11.77	10.40	11.03	11.46
Skill development expenditure	18.32	19.19	19.16	19.50
Preferential procurement	18.72	17.55	17.30	15.81
Supplier development	10.00	10.12	10.00	10.00
Enterprise development	18.00	18.00	18.00	18.00
Socio-economic development	12.00	12.00	12.00	12.00
TOTAL SCORE	112.35	106.77	104.10	99.71
Level achieved	Level 3	Level 4	Level 4	Level 5
Level achieved after discounting	n/a	n/a	n/a	n/a
YES enhancement	n/a	n/a	n/a	YES – 1 level up
After YES	Level 3	Level 4	Level 4	Level 4

EMPLOYEE ENGAGEMENT

At Blu Label, we conduct a comprehensive employee engagement survey every two years. This deliberate approach allows us sufficient time to meaningfully analyse employee feedback, implement targeted interventions and measure sustainable progress before undertaking the next engagement assessment.

During FY26, we focused on translating employee feedback into tangible actions. We invested in leadership development initiatives across the Group to strengthen leadership effectiveness and equip leaders with the skills required to lead high-performing and engaged teams. Significant investment was also directed towards employee development through learning programmes, bursaries, leadership development initiatives and career growth opportunities designed to support both individual development and organisational capability.

Our commitment to fostering an inclusive and engaging employee experience is underpinned by the #AsBluWeBelong culture. By actively listening to our people and responding to their feedback, we continue to strengthen a workplace culture built on inclusion, belonging, growth and shared success. As we look ahead, employee feedback will remain a critical input into shaping our people practices and ensuring that Blu Label remains a great place to work, a place where people can thrive and contribute meaningfully to the success of the Group.

At Blu Label, internal engagement is a shared responsibility and a strategic enabler. Together, we move forward with purpose.

STAYING COMPETITIVE THROUGH EMPLOYEE EXPERIENCE

At Blu Label, we recognise that a positive employee experience is fundamental to building a high‑performing, resilient and engaged workforce. Our approach to employee experience is centred on creating an environment where employees feel valued, supported, connected and empowered to do their best work. Guided by our #AsBluWeBelong culture, we believe that when employees experience a strong sense of belonging and connection to the organisation, they are better positioned to innovate, collaborate and contribute to sustainable business success.

In FY26, our key driver for engagement was embedding an inclusive working environment by driving the following initiatives:

• Strengthened recognition practices by celebrating employee contributions and reinforcing behaviours that support a high-performance and inclusive culture.
• Embedded purpose and values across the employee experience, strengthening alignment between individual contribution, organisational goals and the #AsBluWeBelong culture.
• Enhanced employee communication through more targeted and meaningful engagement, ensuring employees remained informed, connected and aligned to business priorities.

Blu Label's FY27 employee experience priorities are:

• Enhance the digital employee experience – continue the evolution of BluCore as a central platform for learning, performance, career development and talent management, simplifying employee access to opportunities, information and development resources.
• Strengthen employee wellbeing – expand wellbeing offerings beyond the traditional EAP programs by increasing leader capability to support wellbeing and foster psychologically healthy workplaces.
• Deepen the #AsBluWeBelong culture – We will continue to create platforms for employees to share their perspectives, celebrate successes and contribute to meaningful business initiatives, fostering a workplace where every employee feels valued, included and connected to our shared purpose.

HOW WE PERFORMED

EMPLOYEE RETENTION

At Blu Label, our people are at the heart of everything we do. Guided by our culture mantra, #AsBluWeBelong, we have continued building an inclusive, supportive environment where everyone feels seen, heard and valued.

Turnover
2026 25.37%	2025 21.36%
Voluntary 11.02%	Voluntary 11.97%
Involuntary 14.34%	Involuntary 9.38%
Executive 0.49%	Executive 2.9%

Overall employee turnover increased from 21.36% in FY25 to 25.37% in FY26, reflecting a higher level of workforce movement during the year. While overall turnover increased, encouragingly, voluntary turnover declined from 11.97% to 11.02%, which is an improvement in the Group's ability to retain employees despite a competitive talent market. This indicates improved employee retention and continued progress in creating an environment where employees choose to build their careers. The increase in turnover was primarily driven by higher involuntary turnover, which increased from 9.38% to 14.34%, reflecting organisational actions taken to align workforce capacity and capability with business requirements.

Executive turnover remained low and improved significantly during the year, declining from 2.93% to 0.49%, demonstrating stability within the Group's leadership team.

BALANCING A YOUNG WORKFORCE

The average age of our workforce is 39 and the average tenure is six years and four months. Our workforce profile demonstrates that employees are choosing to build meaningful careers within Blu Label. This stability provides a strong platform from which to deepen our investment in leadership capability, learning, wellbeing and career development, ensuring that we continue to attract, retain and develop the talent required to support the Group's future growth and deliver on the promise of #AsBluWeBelong.

AGE GROUP	Number of employees FY26
Under 20	3
Under 30	193
Under 40	370
Under 50	300
Under 60	127
60 and above	32
TOTAL	1 025

Our workforce profile reflects a stable and experienced employee base that is well positioned to support the Group's future ambitions. In FY27, we will build on this foundation by strengthening leadership capability, creating greater opportunities for career progression, investing in continuous learning and enhancing employee wellbeing and recognition. By continuing to develop our people and cultivate a culture of belonging, we aim to create an environment where employees can thrive, contribute meaningfully and grow alongside the business, enabling sustainable performance and long-term value creation.

BUILDING A SUSTAINABLE TALENT PIPELINE

Building a sustainable talent pipeline remains critical to the Group's long-term success and organisational resilience. During FY26, we strengthened the integration between succession planning, talent management and performance enablement to create greater visibility of critical talent and future leadership potential. By identifying high-performing employees, assessing readiness for future roles and implementing targeted development interventions, we continued to build a strong internal pipeline of talent capable of meeting the Group's future leadership and capability requirements.

Our performance enablement approach plays a central role in this process by creating ongoing conversations around goals, development, capability building and career aspirations. This enables employees to understand what is required for future growth while providing leaders with greater insight into individual performance, potential and readiness. Combined with strengthened succession planning practices and the introduction of platforms such as BluCore and BluAcademy, we are creating a more structured and transparent approach to developing talent, accelerating leadership readiness and supporting internal mobility opportunities across the Group.

By connecting performance, development and succession planning, we are not only enhancing employee growth and career progression but also ensuring that Blu Label has the leadership strength, critical skills and organisational capability required to support sustainable business growth well into the future.

PROGRESS ON GENDER DIVERSITY

At Blu Label, we believe that transformation is about more than representation metrics. It is about creating an environment where diverse talent can thrive, contribute and progress into opportunities that support both individual growth and business success. During FY26, female representation across the Group increased from 46% to 48%, reflecting continued progress in building a more balanced and inclusive workforce.

Our commitment to transformation is underpinned by the belief that diverse perspectives strengthen decision-making, enhance innovation and enable better business outcomes. By fostering an inclusive culture where employees feel respected, valued and empowered to reach their full potential, we are creating a workplace that reflects the diversity of the communities we serve while supporting long-term organisational sustainability.

INVESTING IN OUR FUTURE LEADERS

By investing in leadership development today, we are creating a sustainable pipeline of future-ready leaders who can drive innovation, inspire high-performing teams and support the Group's future ambitions. Our focus extends beyond filling future vacancies to building leadership capability that reflects our values, strengthens our culture and supports the long-term success of Blu Label.

RECRUITMENT

KEEPING PACE WITH CHANGE

Blu Label is undergoing rapid transformation and demanding new skills and capabilities from our workforce. We are building high-performing teams equipped for the future to maintain our competitive edge. In FY26, Blu Label welcomed several new members to the team:

193 new staff members (FY25: 149)
115 new permanent contracts (FY25: 126)	78 new fixed-term contracts (FY25: 23)

• 89% of new recruits are black; and
• 75% of the people appointed into managerial roles are black.

INNOVATIVE RECRUITMENT STRATEGY

Our recruitment approach focuses on three key pillars:

• Talent attraction: Creating an employer brand that attracts the right skills and is aligned with our purpose.
• Effective partnering with recruitment agencies: ensuring regular feedback to align our recruitment efforts with the shifting talent market.
• Employee referrals: Our current employees and alumni are invaluable assets. We leverage their networks as a powerful source of future talent.

DIVERSITY AND INCLUSION

Our recruitment outcomes during FY26 demonstrate continued progress in building a workforce that is reflective of the diverse communities we serve. The profile of new appointments, including appointments into managerial roles, highlights the intentional focus placed on attracting and appointing talent from designated groups, supporting both our employment equity objectives and broader transformation agenda.

Importantly, our approach to transformation extends beyond hiring. We are focused on creating sustainable opportunities for growth, development and advancement by ensuring that diverse talent is supported through leadership development, learning opportunities, succession planning and career progression initiatives. This enables us to strengthen representation not only at entry and operational levels but also within leadership pipelines that will shape the future of the Group.

BUILDING A STRONG EMPLOYER BRAND

Building a strong employer brand remained a key focus during FY26 as we continued to position Blu Label as an employer where people can grow, contribute and realise their potential. Our employer brand is rooted in the belief that business success is driven by exceptional people, a strong culture and meaningful opportunities for development.

Our employee value proposition is anchored in creating an environment where employees feel connected to a shared purpose, empowered to grow their careers and supported to perform at their best. As we continue to evolve our employer brand, our focus remains on attracting and retaining talented individuals who are aligned to our values, inspired by our purpose and motivated to contribute to building businesses that unlock opportunity and create meaningful impact for the communities we serve.

SUPPORTING HUMAN CAPITAL GROWTH

LEARNING AND DEVELOPMENT: BUILDING CAPABILITY FOR THE FUTURE

At Blu Label, we believe that continuous learning is fundamental to individual growth, organisational success and long-term sustainability. As technology, customer expectations and the world of work continue to evolve, developing the skills and capabilities of our people remains a strategic priority. Our investment in learning extends beyond compliance and technical development; it is focused on fostering a culture where employees are empowered to take ownership of their growth, build future-fit capabilities and unlock their full potential.

During FY26, we continued to strengthen our learning ecosystem by providing employees with access to a range of development opportunities tailored to different career stages and learning needs. Through our bursary programme, employees were supported in pursuing post-matric qualifications, while LinkedIn Learning provided flexible access to a wide range of professional, technical and leadership content. We also implemented BluAcademy, our digital learning platform, to place learning at the fingertips of employees and further embed a culture of continuous learning across the Group. These initiatives create greater accessibility to development opportunities and encourage employees to actively invest in their personal and professional growth.

Our commitment to learning also extends beyond our employee population. Through bursaries and structured learnership programmes for unemployed individuals, we continue to contribute to skills development in South Africa while creating pathways to employment and economic participation. These programmes enable us to support broader societal development while building future talent pipelines and creating meaningful opportunities for individuals to gain skills, experience and qualifications.

FOCUSING ON BUILDING SKILLS

WHAT WE MEASURE

Number of employees on leadership development programmes	78 (FY25: 99)
Women who attend leadership development programmes	25 (FY25: 56)
Number of employees undertaking personal development	772 (FY25: 540)
Learners on learnership*	3 874 (FY25: 2 901)
Number of bursaries	100 (FY25: 180)
Number of employees accessing online learning platforms	1 037 (FY25: 1 059)

*	This figure is the total intake of learners who are unemployed or have a disability, including those who did not complete the programme.

INVESTING IN WELLBEING AT BLU LABEL

At Blu Label, we recognise that employee wellbeing is a critical asset, directly impacting individual and organisational success. We aim to foster a work environment by prioritising physical, mental and financial wellbeing, empowering our employees to thrive.

UNDERSTANDING EMPLOYEE NEEDS

At Blu Label, we recognise that time away from work is essential for wellbeing, personal growth and family responsibilities. As part of our commitment to building a supportive environment and a healthy workforce, we continue to monitor and evolve our leave practices to meet the needs of our people.

LEAVE TRENDS AND ANALYSIS

AVERAGE LEAVE TAKEN DURING THE YEAR

	FY26	FY25
Annual leave days per employee	15.04	15.87
Sick leave days per employee	5.36	5.70
Study leave days per employee	5.36	5.72

TRENDS IN LEAVE DATA

Blu Label remains committed to fostering a workplace that supports employee wellbeing, development and sustainable performance. During FY26, leave utilisation remained relatively stable across all leave categories, reflecting a balanced approach to employee wellbeing while ensuring business continuity.

The reduction in average sick leave taken per employee may indicate positive outcomes from the Group's continued investment in employee wellbeing initiatives, including financial wellness programmes, workplace health initiatives and broader wellbeing support aimed at promoting healthier and more resilient employees.

The slight decline in study leave utilisation during FY26 reflects a reduction in the number of employees participating in the Group's bursary programme. The Group's commitment to employee development remained strong, with continued investment in a broad range of learning opportunities designed to foster a culture of continuous learning, support career growth and build the capabilities required for future success. Through initiatives such as employee bursaries, LinkedIn Learning, BluAcademy and learnership programmes, employees continue to be supported in pursuing development opportunities that enhance both individual career growth and organisational capability.

COMPREHENSIVE WELLBEING PROGRAMMES

In FY26, Blu Label strengthened its commitment to employee wellbeing by establishing a more integrated and sustainable wellness ecosystem across three interconnected pillars: physical health, mental wellbeing and financial resilience.

Employee wellbeing remained a key focus area as we continued to strengthen a culture that supports employees' physical, financial and overall wellbeing. Building on the foundations established in previous years, we expanded access to wellbeing resources through strategic partnerships, workplace wellness initiatives and employee‑led programmes designed to make wellbeing more accessible and relevant across the Group:

• Supporting physical health – Preventative healthcare remained a key focus, with employees gaining access to monthly on-site medical consultations, discounted fitness memberships, flu vaccinations, blood drives and cancer screening initiatives. Wellness activations, including monthly massage sessions and the Biggest Loser Wellness Challenge, complemented these preventative interventions by encouraging healthier lifestyles and physical activity. Importantly, wellness initiatives were extended beyond traditional office environments, with CANSA screening sessions specifically reaching warehouse employees and ensuring that operational teams were included in the Group's preventative health approach.
• Building financial resilience – Recognising the impact of financial wellbeing on employee resilience and engagement, Blu Label expanded access to professional financial guidance through monthly financial hot desks with major banking partners. A key highlight was the four-month #OwnYourMoney campaign, developed in response to the change in the employee bonus payment cycle from December to August. The campaign provided practical, accessible financial education across four themes: Psychology of Money, Budgeting Foundations, Save Smart/Tackle Debt and Financial Independence. It was supported by expert financial advisers, practical toolkits and multimedia content.
• Creating meaningful wellness experiences – The inaugural Namaste TeamBlu Wellness Day, delivered in partnership with GIB Insurance Brokers, brought physical, mental and financial wellbeing together in one immersive employee experience. Attendance exceeded the original target, with positive employee feedback reinforcing the value of investing in holistic wellness experiences. The event established a new benchmark for future wellness activations.
• Making wellness part of everyday TeamBlu culture – Beyond individual programmes, wellness remained visible throughout the year through a sustained calendar of awareness initiatives covering cancer prevention, women's and men's health, sexual health, mental wellbeing, cultural belonging and physical fitness. Wellness storytelling was further amplified through original podcasts, videos and digital content, making wellbeing more relatable and accessible across the organisation.

HEALTH AND SAFETY PERFORMANCE

BLU LABEL KPI	2026		2025	2024
Total number of fatalities recorded on duty	–		–	–
Total number of work-related injuries reported	3		5	5
Total number of work-related illnesses reported	4		4	–
Total number of days absent as a result of injury on duty	17		28	34
Total number of claims submitted to Workman’s Compensation	3		2	5