d 1 0 n d e A u g s e u s e k t e 2 w 0 1 8 9 2 | | 0 n 3 o O i t a c t t o n b e s e r e r 2 P 0 s 1 t 9 l u | s e R T e r a d e B Y a f k l a e r H P l c
90° 2 Ted Baker Plc WHAT’S ON TED’S MIND? Half Year Results Presentation 28 weeks ended 10 August 2019 60° Challenging Backdrop - Macro environment - Promotional landscape - Structural changes (shift of business to online) Strengths of Ted 30° - Brand - Flexible business model - multiple paths to market - People - Well invested systems Key Developments 0° - Asia deals - Licence development - Footwear - Omni-channel and customer focus - Effjciencies and working capital initiatives 30° - Sustainability - Brand engagement 60° AW19 90°
90° 3 Ted Baker Plc YEAR IN REVIEW Half Year Results Presentation 28 weeks ended 10 August 2019 60° H1 H1 2020 2019 VAR £M £M % Group sales revenue 303.8 306.0 (0.7) 30° (Loss) / Profjt before tax, exceptional (2.7) 25.0 (110.6) costs* and IFRS 16** Adjusted EPS (4.5p) 43.8p (110.3) Interim dividend 7.8p 17.9p (56.4) 0° - Performance impacted by very diffjcult trading conditions across global markets, amplifjed by heightened levels of consumer uncertainty - Trading conditions characterised by unprecedented and sustained levels of promotional activity 30° - Well-publicised challenges facing some of the Group’s UK trading partners against the backdrop of a continuing shift towards an increasingly digital retail landscape - One-off charges impacting reported profjt are disclosed in Appendices 1-3 - We remain confjdent in Ted Baker’s ability to navigate the market and further develop 60° as a global lifestyle brand AW19 *Further detail on exceptional costs provided in Appendix 2 **Further detail on IFRS 16 provided in Appendix 3 90°
90° 4 Ted Baker Plc FINANCIAL REVIEW Half Year Results Presentation 28 weeks ended 10 August 2019 60° 30° 0° 30° 60° 90°
90° 5 Ted Baker Plc GROUP INCOME STATEMENT Half Year Results Presentation 28 weeks ended 10 August 2019 H1 H1 60° 2020 2019 VAR £M £M % Revenue 303.8 306.0 (0.7) Gross profjt* 165.1 178.5 (7.5) 30° Gross margin* 54.3% 58.3% (400bps) Operating expenses* (176.5) (162.7) (8.5) Licence income 9.4 10.9 (13.1) Other operating income 0.3 0.0 100.0 OPERATING (LOSS) / PROFIT 0° BEFORE EXCEPTIONAL COSTS (1.6) 26.7 (106.0) AND IFRS 16 % of revenue (0.5%) 8.7% (920bps) Net fjnance expense* (1.3) (2.0) 36.9 Share of joint venture profjt 0.2 0.3 (28.4) 30° (LOSS) / PROFIT BEFORE TAX AND EXCEPTIONAL COSTS (2.7) 25.0 (110.8) AND IFRS 16 Exceptional costs** (17.4) (0.5) (3,022.6) 60° IFRS 16*** (2.9) - (100.0) (194.0) GERMANY: HAMBURG (LOSS) / PROFIT BEFORE TAX (23.0) 24.5 *Before exceptional costs and IFRS 16 **Further detail on exceptional costs is provided in Appendix 2 ***Further detail on IFRS 16 is provided in Appendix 3 90°
90° 6 Ted Baker Plc INCOME BY CHANNEL Half Year Results Presentation 28 weeks ended 10 August 2019 60° In £M (Reported) X%: Constant currency variance 316.9 (4.1%) +1.8% (13.1%) 313.3 30° 0° H1 2019 RETAIL WHOLESALE LICENCE H1 2020 INCOME Retail -2.5% (-4.1% constant currency) - Very diffjcult trading conditions - Highly promotional retail environment 30° - Well publicised challenges faced by UK partners and unseasonable weather across North America - Average square footage increased 5.2% Wholesale +4.0% (+1.8% constant currency) - Underlying wholesale sales (excluding footwear) decreased 9.8% (decreased 11.7% constant currency) - Timing of new monthly drops 60° - Very challenging trading conditions for trustees and territorial licence partners Licence income -13.1% - Underlying growth in licence income (excluding footwear) of 2.8% - Notable performances from suiting, eyewear and bedding 90°
90° 7 Ted Baker Plc REVENUE BY COLLECTION Half Year Results Presentation 28 weeks ended 10 August 2019 Womenswear -1.5% 60° Womenswear sales were down in part due to the previously reported challenges in the Spring/Summer collection which have since been appropriately addressed for future seasons Menswear +0.5% Menswear sales benefjted from footwear sales in the period following the acquisition of the footwear business in January 2019. 30° Underlying menswear sales (excluding footwear) decreased by 3.8% H1 2020 Mix H1 2019 Mix 0° Menswear Menswear £115.3m £114.7m 38.0% Womenswear 37.5% Womenswear £188.5m £191.3m 30° 62.0% 62.5% 60° Menswear change in mix +0.5% Womenswear change in mix (0.5%) 90°
90° 8 Ted Baker Plc REVENUE BY TERRITORY Half Year Results Presentation 28 weeks ended 10 August 2019 In £M (Reported) 60° X%: Constant currency variance (2.5%) WHOLESALE 303.8 RETAIL 30° 89.3 (2.5%) 197.0 55.7 0° (0.7%) 214.5 97.3 33.6 141.3 30° (17.2%) 63.7 9.5 9.5 UK & EUROPE NORTH AMERICA REST OF WORLD* GROUP CONSTANT CONSTANT CONSTANT CONSTANT 60° REPORTED CURRENCY REPORTED CURRENCY REPORTED CURRENCY REPORTED CURRENCY Retail (3.9%) (3.9%) 3.1% (2.3%) (15.2%) (17.2%) (2.5%) (4.1%) Wholesale 1.5% 1.5% 8.4% 2.5% - - 4.0% 1.8% Total (2.5%) (2.5%) 4.8% (0.7%) (15.2%) (17.2%) (0.7%) (2.5%) * Rest of World includes; Asia and Africa 90°
90° 9 Ted Baker Plc OMNI-CHANNEL Half Year Results Presentation 28 weeks ended 10 August 2019 E-commerce as a % of total retail sales, H1 2020 60° 29.2% 15.2% 14.7% 24.4% In £M (Reported) X%: Constant currency variance (4.1%) 30° E-COMMERCE STORES 214.5 (3.9%) 52.3 141.3 0° 41.2 (2.3%) 63.7 162.2 9.7 (17.2%) 30° 100.1 54.0 9.5 1.4 8.1 UK & EUROPE NORTH AMERICA REST OF WORLD* GROUP CONSTANT CONSTANT CONSTANT CONSTANT 60° REPORTED CURRENCY REPORTED CURRENCY REPORTED CURRENCY REPORTED CURRENCY Stores (4.2%) (4.2%) 1.7% (3.3%) (14.7%) (16.8%) (2.9%) (4.6%) Ecommerce (3.3%) (3.1%) 11.5% 4.2% (17.6%) (18.2%) (1.3%) (2.4%) Total (3.9%) (3.9%) 3.1% (2.3%) (15.2%) (17.2%) (2.5%) (4.1%) * Rest of World includes; Asia and Africa 90°
90° 10 Ted Baker Plc GROSS MARGIN BY CHANNEL Half Year Results Presentation 28 weeks ended 10 August 2019 H1 H1 H1 2020 Gross Margin Drivers 2020 2019 VAR 60° % % POINTS Retail 61.3% 64.2% (290bps) Wholesale 37.6% 43.4% (580bps) Group 54.3% 58.3% (400bps) 30° Improved retail margin 70 on footwear sales 65 0° 60 55 Unprecedented and sustained levels of promotional activity 50 30° Gross margin % Lower wholesale margin 45 on footwear sales Active approach 40 to inventory sell through 60° 35 Retail Gross Margin Wholesale Gross Margin 30 2015 2016 2017 2018 2019 2020 Composite Gross Margin H1 H1 H1 H1 H1 H1 90°
90° 11 Ted Baker Plc OPERATING EXPENSES Half Year Results Presentation 28 weeks ended 10 August 2019 In £M (Reported) 60° X%: Constant currency variance +8.8% 176.5 +11.6% +6.7% +5.9% 30° 162.7 H1 2019 DISTRIBUTION ADMINISTRATIVE DEPRECIATION PAYROLL H1 2020 0° TOTAL OPEX* COSTS* * COSTS ** TOTAL OPEX* Total Opex as % of sales AW19 WOMENSWEAR 53.2% 58.1% Distribution costs Depreciation 30° Increase due to annualisation of the costs of operating our new North Increased depreciation and amortisation charge from prior year American warehouse which opened in H1 2019. Excluding footwear, investment in systems distribution costs increased 5.1% in constant currency Payroll Administrative costs Increase due to continued investment in our people including the Increase due to continued investment in our infrastructure to support additional headcount to support the footwear business. Excluding 60° the business. Excluding footwear, administrative costs increased 5.4% in footwear, payroll costs increased 5.9% in constant currency constant currency *Total Opex excludes IFRS 16 charges and exceptional costs **Distribution and administrative costs exclude depreciation and payroll costs 90°
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