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

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

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 opinions. 2

GROUP HIGHLIGHTS

FY FY20 H H1: GROUP H P HIGHLIGHTS • All results are on a comparative basis to the prior year, FY20 H1 FY19 H1 ∆ pcp with no impact from adjustments for IFRS 16 (£m) (£m) Group revenue £2,043.5 £1,791.8 14.0% • Excluding acquisitions, and on a currency neutral basis, Group gross margin 43.8% 41.5% 230 bps revenue decreased by -6.4% Underlying EBITDA £181.2 £148.8 21.8% • Excluding acquisitions and on a currency neutral basis, underlying EBITDA was up 15.1% Underlying PBT £101.8 £64.4 58.1% • Free cash flow of £162.3m (pre capex) vs £69.0m in Underlying EPS 15.4p 7.3p 111.0% prior period Reported PBT £193.4 £74.4 159.9% • Capital expenditure of £134.5m, including £49.0m of property assets Reported EPS 28.7p 8.7p 229.9% • Net debt of £254.4m from £378.5m at 28 April 2019 and £505.5m at 28 October 2018 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. 4

FY20 Y20 H1: H1: SUMMARY U Y UNDERLYIN YING EBIT ITDA TO PROFIT IT R RECONCIL ILIA IATIO ION £m £m FY20 H FY2 H1 FY1 FY19 H H1 Change (%) 181.2 148.8 +21.8% Underlying EBITDA (70.1) (71.6) Depreciation & amortisation (9.3) (12.8) Net interest 101.8 64.4 +58.1% Underlying profit before tax 4.7 17.6 Exchange gains and losses (3.2) (5.8) IFRS 9 foreign exchange fair value adjustments 90.4 - Profit on sale of properties (3.3) - Impairments of brands & goodwill 3.0 (1.8) Investment income / (costs) Reported profit before tax 193.4 74.4 +160.0% All results are on a comparative basis to the prior year, with no impact from adjustments for IFRS 16 5

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 7

FY20 H1: Y20 H1: UNDERLYIN ING EBITDA B BRID IDGE Excluding acquisitions and on a currency neutral basis, Underlying EBITDA is up 15.1% 8

FY20 H1: Y20 H1: UK S SPORTS OVERVIE IEW REVENUE & REV E & GROSS M MARGIN (1) 1) OPERATIN ING COS COSTS & & UNDERLYIN ING E EBIT ITDA £m £m FY2 FY20 H H1 FY19 H FY1 H1 Cha hange ( (%) %) 91.7 83.6 9.7% Store wages 103.2 95.3 9.3% Premises costs 190.7 141.4 34.9% Other costs 385.6 320.3 20.4% Tot otal o oper erating c cos osts 145.5 148.3 (1.9%) Underlyi Un ying E g EBITDA (5.6) (0.6) Associates 139.9 147.7 (5.3%) Underlyi Un ying E g EBITDA (1) Gross margin is Retail margin excluding wholesale, fitness and other 9

FY20 Y20 H1: H1: PREMIUM L LIFESTYLE O OVERVIE IEW REVENUE & REV E & GROSS M MARGIN OPERATIN ING COS COSTS & & UNDERLYIN ING E EBIT ITDA £m £m FY2 FY20 H H1 FY19 H FY1 H1 Cha hange ( (%) %) 37.7 29.4 28.2% Store wages 59.7 34.4 73.5% Premises costs 48.0 30.3 58.4% Other costs 145.4 94.1 54.5% Tot otal o oper erating c cos osts (5.6) (29.0) 80.7% Underlyi Un ying E g EBITDA 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 10

FY20 Y20 H1: H1: EUROPEAN S SPORTS O OVERVIE IEW REVENUE & REV E & GROSS M MARGIN OPERATIN ING COS COSTS & & UNDERLYIN ING E EBIT ITDA £m £m FY2 FY20 H H1 FY19 H FY1 H1 Cha hange ( (%) %) 47.6 45.8 3.9% Store wages 41.0 34.0 20.6% Premises costs 29.9 37.1 (19.4)% Other costs 118.5 116.9 1.4% Tot otal o oper erating c cos osts 32.9 19.2 71.4% Un Underlyi ying E g EBITDA 11

FY20 Y20 H1: H1: REST O OF WORLD O OVERVIE IEW REVENUE & REV E & GROSS M MARGIN OPERATIN ING COS COSTS & & UNDERLYIN ING E EBIT ITDA £m £m FY2 FY20 H H1 FY19 H FY1 H1 Cha hange ( (%) %) 16.8 17.8 (5.6%) Store wages 9.9 9.9 - Premises costs 12.1 17.4 (30.5%) Other costs 38.8 45.1 (14.0%) Tot otal o oper erating c cos osts (2.5) (4.9) +49.0% Underlyi Un ying E g EBITDA • Bobs & EMS acquired May 17, FY18 H1 margin includes revaluation to inventory 12

FY20 Y20 H1: H1: WHO HOLESALE & & LICENSIN ING O OVERVIE IEW REVENUE REV OPERATIN ING COS COSTS & & UNDERLYIN ING E EBIT ITDA Cha hange £m £m FY2 FY20 H H1 FY19 H FY1 H1 (%) %) 7.9 6.0 +31.7% Wages 4.6 2.8 +64.3% Advertising & promotion 7.2 8.8 -18.2% Other costs 19.7 17.6 +11.9% Tot otal o oper erating c cos osts 16.5 15.8 +4.4% Un Underlyi ying E g EBITDA 13

FY20 Y20 H1: H1: NET D DEBT B BRID IDGE 14

Thank You 15