2014/15 HIGHLIGHTS Warehouse capacity Four further currency options - - PowerPoint PPT Presentation
FINAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2015 Wednesday, 6 th May 2015 2014/15 HIGHLIGHTS Warehouse capacity Four further currency options increased for Scandinavian customers Warehouse extension Cohesive marketing
Wednesday, 6th May 2015
þ Warehouse capacity increased þ Warehouse extension þ WMS system implemented þ Responsive website design þ Australia turnaround þ USA building momentum
2014/15 HIGHLIGHTS
þ Four further currency options for Scandinavian customers þ Cohesive marketing campaigns - #experienceeverything, #wherewestand, #weareus þ New payment gateway þ International price changes þ Sunday delivery þ Foreign language sites
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CFO
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FINANCIAL HIGHLIGHTS
q Revenue up 27% to £139.9m (2014 £109.8m) q UK growth 33% year on year q Return to growth in rest of the world region q Underlying EBITDA £14.1m (10.1% of sales) q Gross margin at 60.8% q Warehouse capacity increased q Significant IT developments – foreign language sites, WMS implementation, responsive website q Positive impact of international pricing strategies
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SUMMARY INCOME STATEMENT
Year ended 28 February (£m) 2015 2014 Change Revenue 139.9 109.8 +27% Gross profit 85.0 64.9 +31% Gross margin 60.8% 59.1% +170bps Operating profit 10.6 10.8
EBITDA (adjusted) 14.1 12.2 +16% Profit before tax 11.1 10.7 +3% Pro forma gross profit1 85.0 68.9 +23% Pro forma gross margin 60.8% 62.8%
Pro forma EBITDA (adjusted) 14.1 16.0
Pro forma EBITDA margin 10.1% 14.6%
q Gross margin increase due to change in sourcing model q Operating profit margin 8.4% before exceptional IPO costs of £1.2m q Adjusted EBITDA margin 10.1%
1 Unaudited pro forma gross profit is adjusted to reflect direct sourcing by
boohoo.com plc, not via (now discontinued) related party companies
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CALCULATION OF ADJUSTED EBITDA
Year ended 28 February (£m) 2015 actual 2014 actual Change 2014 pro forma Change Operating profit 10.6 10.8
14.7
Exceptional IPO costs 1.2 0.4 +234% 0.4 +234% Operating profit before exceptional items 11.8 11.2 +6% 15.1
Depreciation and amortisation 2.0 1.0 +100% 1.0 +100% Share-based payments charge 0.3
Adjusted EBITDA 14.1 12.2 +16% 16.0
1 Unaudited pro forma gross profit is adjusted to reflect direct sourcing by boohoo.com plc, not via (now discontinued)
related party companies
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INTERNATIONAL
Sales by geographic segment £m Year ended 28 February 2015 Year ended 28 February 2014 Change CER
UK 94.4 71.0 +33% +33% Rest of Europe 18.1 13.1 +39% +47% Rest of world 27.4 25.7 +7% +16% Total revenue 139.9 109.8 +27% +31%
q Strong growth globally q Europe showing potential with focus on key markets q Return to growth in rest of world driven by Australia turnaround and increased momentum in USA
30.9 40.1 45.6 48.7 20.5 18.3 21.6 23.9 51.4 58.4 67.2 72.6 H1 FY14 H2 FY14 H1FY15 H2 FY15 International UK
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OPERATING COSTS
Year ended 28 February, £m 2015 2014 Change Marketing 18.5 15.3
+21%
Distribution 30.7 24.3
+26%
Other admin 23.7 14.6
+63%
TOTAL 72.9 54.2
+35%
Year ended 28 February, % revenue 2015 2014 Change Marketing 13.2% 14.0%
Distribution 21.9% 22.1%
Other admin 17.0% 13.3% +369bps TOTAL 52.1% 49.4% +277bps 8 13.8% 14.1% 14.5% 12.1% 20.9% 23.1% 21.8% 22.1% 15.4% 11.5% 17.1% 16.9% 50.1% 48.6% 53.4% 51.0% H1 FY14 H2 FY14 H1FY15 H2 FY15 Other admin Distribution Marketing
OPERATING CASH FLOW
Year ended 28th February, £m 2015 2014 Profit for the year 8.4 8.4 Depreciation/amortisation 2.0 1.0 Share-based payment charges 0.3
2.6 2.3 Finance expenses (0.5) 0.1 Increase in inventories (1.4) (3.0) Increase/decrease in receivables (0.5) (3.2) Increase in payables 3.1 2.2 Operating cash flow 14.0 7.8 Capital expenditure (8.2) (4.6) Free cash flow 5.8 3.2
q Efficient conversion of EBITDA to cash q Inventory tightly controlled q Working capital inflow of £1.2m (0.9% of sales) from stock/ receivables/payables q Capital expenditure reflects warehouse extension, WMS investment and increased mezzanine capacity q Free cash flow does not include proceeds from IPO or exceptional IPO expenses
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BALANCE SHEET
At 28 February, £m 2015 2014 Assets Intangible assets 4.6 3.1 Property, plant and equipment 10.9 6.2 Deferred tax 0.1
15.6 9.3 Working capital (2.9) (1.2) Net financial assets 0.8 0.1 Cash and cash equivalents 54.1 5.4 Debt
Current tax liability (1.2) (1.1) Net assets 66.4 9.8
q IPO proceeds of £47.5m (net of transaction related costs) received after the balance sheet date q Investments in warehouse and IT (WMS system) q Negative net working capital now purely with third parties q £2.7m warehouse loan repaid in April 2014 q Capital employed excluding excess cash of £3.2m
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2 4 6 8 10 12 14 16 18 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% Sessions Conversion rate
KPIS
Indicator 2015 2014 Change Active customers1 3.0m 2.3m +29% Number of orders 5.8m 4.2m +36% Conversion rate2 3.6% 3.3% +30bps Average order value3 £35.28 £36.59
Number of items in a basket 2.56 2.38 +7%
MON ONTHLY S Y SESSI SSIONS (M ONS (MILLI LIONS) ONS) AN AND C D CON ONVERSI SION R ON RAT ATE2
1 Defined as having shopped in the last year 2 Defined as the number of orders as a percentage of website sessions 3 Gross sales including VAT/sales tax divided by the number of orders
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CAPEX
q Warehouse extension complete May 2015 – expenditure in 2014/15 was £4.7m, £2.5m less than plan – this expenditure will fall into 2015/16 q Fit out begins June 2015 q Capex guidance for 2015/16
for warehouse extension q Does not include any costs of automation in Burnley which could commence in FY16
0.9 4.7 9.0 3.3 3.1 2.5 1.5
4.5 8.2 13.0
FY 14 FY15 FY16 guidance Other IT Warehouse
CAP CAPITAL EXP TAL EXPENDITURE BY Y RE BY YEA EAR
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JOINT CEO
OUR FASHION
q Plus, Petite, Fit,
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OUR FASHION
q Night, Blue, Dare to Flare, Basics
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OUR MARKET SHARE - UK
0.9% 1.1% 1.3% 1.5% 1.7% 1.9% 2.1% 2.3% 2.5% 2.7% 2.9%
12-May-12 12-Jul-12 12-Sep-12 12-Nov-12 12-Jan-13 12-Mar-13 12-May-13 12-Jul-13 12-Sep-13 12-Nov-13 12-Jan-14 12-Mar-14 12-May-14 12-Jul-14 12-Sep-14 12-Nov-14 12-Jan-15 12-Mar-15
1 Next 6.68% 2 ASOS 6.25% 3 New Look 4.34% 4 boohoo.com 2.78% 5 George at Asda 2.59%
To Top 5 – 4th Apr p 5 – 4th April 2 l 2015 UK H K HITWISE MA E MARKE RKET SH T SHARE O RE OF VI F VISI SITORS
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OUR MARKET SHARE - AUS
1 ASOS 4.45% 2 The Iconic 3.97% 3 Ozsale.com.au 3.46% 4 Cotton On 2.37% 5 boohoo.com 1.68%
To Top 5 – 4th Apr p 5 – 4th April 2 l 2015 AUS H US HITWISE MA E MARKE RKET SH T SHARE O RE OF VI F VISI SITORS
17 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 04-Jan-14 04-Feb-14 04-Mar-14 04-Apr-14 04-May-14 04-Jun-14 04-Jul-14 04-Aug-14 04-Sep-14 04-Oct-14 04-Nov-14 04-Dec-14 04-Jan-15 04-Feb-15 04-Mar-15 04-Apr-15
MOBILE ENGAGEMENT
q Responsive site implemented September 2014 q Conversion improvement q Proportion of mobile traffic continues to increase q APP work in progress
Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15
SESSI SSIONS BY D ONS BY DEVI VICE T E TYP YPE BY M E BY MON ONTH SESSI SSION M ON MIX (%) BY D X (%) BY DEVI VICE T E TYP YPE BY M E BY MON ONTH
MOBILE LE TA TABLE LET DESKTOP MOBILE LE TA TABLE LET DESKTOP
1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
MOBILE C LE CON ONVERSI SION BY M ON BY MON ONTH 50% 0%
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SOCIAL ENGAGEMENT
boohoo ASOS New Look Topshop Next Facebook fans 2.1m 3.5m 3.0m 3.9m 1.4m Facebook engagement % 0.206% 0.011% 0.003% 0.007% 0.086% Instagram fans 0.8m 2.7m 0.6m 4.0m 0.1m Instagram post engagement 1.7% 1.2% 2.0% 1.2% 1.2% Instagram profile engagement 7.6% 3.7% 2.4% 3,6% 4.9% Twitter fans 0.4m 0.8m 0.3m 1.1m 0.2m Twitter engagement 0.0059% 0.0057% 0.0066% 0.0026% 0.0039%
DON’T B ON’T BE F E FOOLE OOLED D
BY NUMBER OF LIKES OR FANS
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SOCIAL ENGAGEMENT
OUR B R BRAN AND A D ADVOCAT CATES
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8m Youtube subscribers 3m Instagram followers
5m Youtube subscribers 2.2m Instagram followers
2.7m YouTube subscribers 1.8m Instagram followers
SUMMARY
q 2014/15 – a year of progress and investment q SS15 marketing campaigns seeing a good response q UK momentum recovering in the new financial year q Continued momentum internationally with focus on key markets q Focus on execution
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