Ocado Regulatory News (OCDO)

THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR MAY HAVE QUALIFIED AS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE 7(1) OF THE MARKET ABUSE REGULATION (EU) 596/2014, AS AMENDED (AND INCLUDING AS IT FORMS PART OF UNITED KINGDOM DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED).

Ocado Group plc

5 December 2025

Ocado Group plc

Update on Kroger Partnership

Ocado Group plc ("Ocado" or the "Company") and Kroger have agreed a one-off cash payment of $350m to compensate Ocado following Kroger's recent decisions to optimise its CFC network. This payment reflects Kroger's decision to close three CFCs in January 2026, as well as a decision by Kroger not to proceed with Charlotte (NC), one of the two planned CFCs due to go-live in 2026.

Ocado and Kroger continue to work closely together across the five live CFCs in Monroe (OH), Dallas (TX), Atlanta (GA), Denver (CO), and Detroit (MI). Ocado teams remain well-embedded within this network of CFCs, supporting significant progress in operational efficiency, volume growth, and increasing same day availability, resulting in a significant improvement in financial performance.

The rollout of Ocado's latest 'Re:imagined' products continues across Kroger's fulfilment network, enabling significant increases in productivity and network capacity. In Detroit, we have expanded the initial capacity of the site, with Kroger ordering further capacity to be utilised in 2026. Ocado's new AutoFreezer technology will also feature for the first time in Kroger's upcoming CFC in Phoenix (AZ).

Tim Steiner, CEO of Ocado Group, said:

"We continue to invest significant resources to support our partners at Kroger, and to help them build on our longstanding partnership. Ocado's technology has evolved significantly to include both the new technologies that Kroger is currently deploying in its CFC network, as well as new fulfilment products that bring Ocado's technology to a wider range of applications, including Store Based Automation to support 'pick up' and immediacy."

"Our partners around the world have already deployed a wide range of these fulfilment technologies to great effect, enabling them to address a wide spectrum of geographies, population densities and online shopping missions, underpinned by Ocado's world leading expertise and R&D capabilities. We remain excited about the opportunity for Ocado's evolving products in the US market."

Expected financial impact:

Ocado and Kroger have agreed a one-off cash payment of $350m to Ocado to be paid during January 2026, principally in lieu of future capacity fees for the impacted CFCs. The closure of the three live sites will reduce Ocado's fee revenue in FY26 by c.$50m.

Ocado reaffirms its priority of turning cash flow positive during FY26, driven by continued growth in live and new sites, and underpinned by rigorous cost and capital discipline.

Contacts

Tim Steiner, Chief Executive Officer on +44 (0)1707 228 000

Stephen Daintith, Chief Financial Officer on +44 (0)1707 228 000

Nick Coulter, VP of Group Capital Markets and FP&A, on +44 (0)1707 228 000

Jamie Kerr, Director of Communications, on +44 (0)1707 228 000

Lucy Legh Matt Denham, Jack Gault, Headland Consultancy - ocadogroup@headlandconsultancy.com, on +44 (0)20 3805 4822

Person responsible for arranging the release of this announcement:

Mollie StokerGroup General Counsel and Company Secretary

Ocado Group plc

Buildings One & Two, Trident Place, Mosquito Way,

Hatfield, Hertfordshire AL10 9UL

email: company.secretary@ocado.com

Ocado Group plc LEI: 213800LO8F61YB8MBC74

Further information about Ocado is available on its website at www.ocadogroup.com.