Frasers Group Plc FY20 Preliminary Results Pack For 26 weeks ended - - PowerPoint PPT Presentation

1 Frasers Group Plc FY20 Preliminary Results Pack For 26 weeks ended 27 October 2019 16 December 2019

FORWARD LOOKING INFORMATION

This presentation may contain forward-looking statements, beliefs or opinions, including statements with respect to management's current views and expectations of future events, and the Company’s future financial condition and results of operations. No representation is made that any of these statements, beliefs or opinions will come to pass. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these statements, beliefs or opinions. Forward-looking statements speak only as at the date of this presentation and the Company expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation. No statement in this presentation is intended to be a profit forecast. As a result, you are cautioned not to place any undue reliance on such forward-looking statements, beliefs or

• pinions.

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GROUP HIGHLIGHTS

FY FY20 H H1: GROUP H P HIGHLIGHTS

1. Free cash flow is defined as operating cash flow after working capital, made up of underlying EBITDA plus realised foreign exchange gains and losses, less corporation tax paid and movements in working capital, but pre-capex. 2. Underlying EBITDA, underlying profit before taxation and underlying EPS are pre IFRS 16 adjustments and exclude realised foreign exchange gains/losses in selling and administration costs, exceptional costs, disposal of subsidiaries and the profit/loss on sale of strategic investments.

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• All results are on a comparative basis to the prior year,

with no impact from adjustments for IFRS 16

• Excluding acquisitions, and on a currency neutral basis,

revenue decreased by -6.4%

• Excluding acquisitions and on a currency neutral basis,

underlying EBITDA was up 15.1%

• Free cash flow of £162.3m (pre capex) vs £69.0m in

prior period

• Capital expenditure of £134.5m, including £49.0m of

property assets

• Net debt of £254.4m from £378.5m at 28 April 2019 and

£505.5m at 28 October 2018 FY20 H1 (£m) FY19 H1 (£m) ∆ pcp Group revenue £2,043.5 £1,791.8 14.0% Group gross margin 43.8% 41.5% 230 bps Underlying EBITDA £181.2 £148.8 21.8% Underlying PBT £101.8 £64.4 58.1% Underlying EPS 15.4p 7.3p 111.0% Reported PBT £193.4 £74.4 159.9% Reported EPS 28.7p 8.7p 229.9%

£m £m FY2 FY20 H H1 FY1 FY19 H H1 Change (%) Underlying EBITDA 181.2 148.8 +21.8% Depreciation & amortisation (70.1) (71.6) Net interest (9.3) (12.8) Underlying profit before tax 101.8 64.4 +58.1% Exchange gains and losses 4.7 17.6 IFRS 9 foreign exchange fair value adjustments (3.2) (5.8) Profit on sale of properties 90.4

• Impairments of brands & goodwill

(3.3)

• Investment income / (costs)

3.0 (1.8) Reported profit before tax 193.4 74.4 +160.0%

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FY20 Y20 H1: H1: SUMMARY U Y UNDERLYIN YING EBIT ITDA TO PROFIT IT R RECONCIL ILIA IATIO ION

All results are on a comparative basis to the prior year, with no impact from adjustments for IFRS 16

FINANCIAL REVIEW

FY20 Y20 H1: H1: GR GROUP R REVENUE B BRID IDGE

• Excluding acquisitions, Group revenue decreased by 6.4% on a currency neutral basis

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FY20 H1: Y20 H1: UNDERLYIN ING EBITDA B BRID IDGE

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Excluding acquisitions and on a currency neutral basis, Underlying EBITDA is up 15.1%

REV REVENUE & E & GROSS M MARGIN(1)

1)

OPERATIN ING COS COSTS & & UNDERLYIN ING E EBIT ITDA

£m £m FY2 FY20 H H1 FY1 FY19 H H1 Cha hange ( (%) %) Store wages 91.7 83.6 9.7% Premises costs 103.2 95.3 9.3% Other costs 190.7 141.4 34.9% Tot

• tal o
• per

erating c cos

• sts

385.6 320.3 20.4% Un Underlyi ying E g EBITDA 145.5 148.3 (1.9%) Associates (5.6) (0.6) Un Underlyi ying E g EBITDA 139.9 147.7 (5.3%)

FY20 H1: Y20 H1: UK S SPORTS OVERVIE IEW

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(1) Gross margin is Retail margin excluding wholesale, fitness and other

REV REVENUE & E & GROSS M MARGIN OPERATIN ING COS COSTS & & UNDERLYIN ING E EBIT ITDA

£m £m FY2 FY20 H H1 FY1 FY19 H H1 Cha hange ( (%) %) Store wages 37.7 29.4 28.2% Premises costs 59.7 34.4 73.5% Other costs 48.0 30.3 58.4% Tot

• tal o
• per

erating c cos

• sts

145.4 94.1 54.5% Un Underlyi ying E g EBITDA (5.6) (29.0) 80.7%

FY20 Y20 H1: H1: PREMIUM L LIFESTYLE O OVERVIE IEW

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Premium Lifestyle now includes the results for the House of Fraser stores and web sales. The prior year comparative has been re-categorised. *Gross Transaction Value (GTV) is the total sales excluding VAT and after deducting returns and discounts

REV REVENUE & E & GROSS M MARGIN OPERATIN ING COS COSTS & & UNDERLYIN ING E EBIT ITDA

£m £m FY2 FY20 H H1 FY1 FY19 H H1 Cha hange ( (%) %) Store wages 47.6 45.8 3.9% Premises costs 41.0 34.0 20.6% Other costs 29.9 37.1 (19.4)% Tot

• tal o
• per

erating c cos

• sts

118.5 116.9 1.4% Un Underlyi ying E g EBITDA 32.9 19.2 71.4%

FY20 Y20 H1: H1: EUROPEAN S SPORTS O OVERVIE IEW

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REV REVENUE & E & GROSS M MARGIN OPERATIN ING COS COSTS & & UNDERLYIN ING E EBIT ITDA

£m £m FY2 FY20 H H1 FY1 FY19 H H1 Cha hange ( (%) %) Store wages 16.8 17.8 (5.6%) Premises costs 9.9 9.9

• Other costs

12.1 17.4 (30.5%) Tot

• tal o
• per

erating c cos

• sts

38.8 45.1 (14.0%) Un Underlyi ying E g EBITDA (2.5) (4.9) +49.0%

• Bobs & EMS acquired May 17, FY18 H1 margin includes revaluation

to inventory

FY20 Y20 H1: H1: REST O OF WORLD O OVERVIE IEW

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REV REVENUE OPERATIN ING COS COSTS & & UNDERLYIN ING E EBIT ITDA

£m £m FY2 FY20 H H1 FY1 FY19 H H1 Cha hange (%) %) Wages 7.9 6.0 +31.7% Advertising & promotion 4.6 2.8 +64.3% Other costs 7.2 8.8

• 18.2%

Tot

• tal o
• per

erating c cos

• sts

19.7 17.6 +11.9% Un Underlyi ying E g EBITDA 16.5 15.8 +4.4%

FY20 Y20 H1: H1: WHO HOLESALE & & LICENSIN ING O OVERVIE IEW

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FY20 Y20 H1: H1: NET D DEBT B BRID IDGE

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Thank You

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