Full Year Results for the year ended 31 August 2018 17 October 2018 - PowerPoint PPT Presentation

Full Year Results for the year ended 31 August 2018 17 October 2018

Nick Beighton CEO

FY 2018 Highlights  Another strong trading performance  Including an acceleration in P4 to +29%  Our biggest ever investment year  Maintained focus on our financial disciplines  Group sales +26%, Reported PBT +28% to £102.0m  Strong KPIs performance including stable ABV  Relentless innovation:  2,900 tech releases and 243 delivery solutions improvements  200 localised experiences including Netherlands and Sweden  Setting our sights beyond £4billion  Capex to remain at current levels of £230-250m  Guidance unchanged

Proven track record of reinvesting for growth Group Revenue (£M) CAPEX (£M) 2,417.3 242 1,923.6 168 1,444.9 1,143.0 87 49 FY 2015 FY 2016 FY 2017 FY 2018 FY 2015 FY 2016 FY 2017 FY 2018 EBIT 1 ROIC 2 4.2% 4.4% 4.0% 4.1% 47% 43% 101.9 31% 79.6 28% 63.0 46.1 FY 2015 FY 2016 FY 2017 FY 2018 FY 2015 FY 2016 FY 2017 FY 2018 1 EBIT = earnings before interest, tax, exceptional items and discontinued operations 2 ROIC = profit before interest, exceptional items and discontinued operations but after tax, divided by average invested capital (net assets minus cash balance and hedging reserve) Note: All numbers subject to rounding throughout this document

Global KPIs UK EU US ROW Active Customers 6.0m (+15%) 7.1m (+25%) 2.5m (+19%) 2.8m (+17%) % Visits on Mobile 81.5% (+470bps) 76.7% (+750bps) 70.5% (+670bps) 74.7% (+780bps) Orders Growth +27% +31% +21% +23% Order Frequency +10% +5% +2% +6% Conversion +40bps +20bps +30bps +10bps ABV +1% +1% +1% +2% Premier Customer Growth +51% +88% +29% n/a ACTIVE SOCIAL VISITS ORDERS ABV FREQUENCY CUSTOMERS FOLLOWERS +19% +27% +1% +7% +19% +13%

Global Clothing Market Rest of UK Europe 1 US Total World 2 Apparel market size 2018 £48.1bn £287.9bn £303.7bn £668.7bn £1,308.2bn Apparel market CAGR 2014-18 2% 5% 9% 9% 8% Online apparel market size 2018 £11.6bn £46.0bn £63.2bn £101.3bn £222.1bn Online apparel market CAGR 2014-18 12% 19% 19% 27% 22% Online penetration 2014 17% 10% 15% 8% 10% Online penetration 2018 24% 16% 21% 15% 17% ASOS retail sales £861m £724m £312m £369m - ASOS 4 year CAGR 23% 38% 36% 29% - ASOS market share 7.4% 1.6% 0.5% 0.4% - Source: Global Data and ASOS estimates 1 EU data for 22 European countries available through Global Data 2 ROW data for 25 Rest of World countries available through Global Data

Our Significant Global Opportunity UK Europe 1 US Rest of World 2 ASOS market share 7.4% 1.6% 0.5% 0.4% Forecast apparel market CAGR 2018-23 2% 4% 4% 8% Forecast online apparel market CAGR 2018-23 8% 13% 11% 19% Online penetration 2018 24% 16% 21% 15% Online penetration forecast 2023 32% 25% 29% 25% Target Audience Penetration 2018 30% 25% 20% 15% 10% 5% 0% Source: Global Data and ASOS estimates 1 EU data for 22 European countries available through Global Data 2 ROW data for 25 Rest of World countries available through Global Data

Sales Growth Group International FY 2018 total UK EU US RoW total Retail sales £2,355.2m £861.3m £739.1m £311.6m £443.2m £1,493.9m Growth 26% 23% 36% 19% 19% 27% CCY 1 Growth 24% 23% 28% 25% 18% 24% Delivery receipts £54.4m £22.3m £15.3m £9.0m £7.8m £32.1m Growth 33% 39% 42% 43% 3% 30% Third party revenues £7.7m £7.4m £0.1m £0.2m - £0.3m Growth 22% 23% - - - - Total sales £2,417.3m £891.0m £754.5m £320.8m £451.0m £1,526.3m Growth 26% 24% 36% 20% 19% 27% CCY 1 Growth 24% 24% 28% 26% 18% 24% RETAIL SALES 2,355.2 1,876.5 1,403.7 1,112.2 950.0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 1 Constant currency has been calculated to take into account hedged rate movements on hedged sales and spot rate movements on unhedged sales

Gross Margin Group International FY 2018 total UK EU US RoW total Gross profit £1,237.1m £411.1m £390.9m £192.9m £242.2m £826.0m Growth 29% 24% 49% 17% 21% 32% Retail gross margin 49.9% 44.3% 50.8% 59.0% 52.9% 53.1% Growth 130bps 10bps 450bps (140bps) 110bps 200bps Gross margin 51.2% 46.1% 51.8% 60.1% 53.7% 54.1% Growth 140bps 20bps 450bps (130bps) 100bps 190bps Group Retail Gross Margin Movements 49.9% 48.6% FY 2017 FX Buying Margin Branded/ASOS Design mix FY 2018

Operating costs FY 2018 FY 2017 CHANGE GUIDANCE FY19 % of SALES % of SALES DISTRIBUTION COSTS (15.8%) (15.6%) (20bps) WAREHOUSE (8.8%) (10.0%) (120bps) PAYROLL AND STAFF COSTS 1 (8.0%) 50bps (8.5%) MARKETING (4.4%) 10bps (4.5%) OTHER COSTS (6.5%) (6.1%) (40bps) DEPRECIATION (2.3%) (10bps) (2.2%) 1 Payroll and staff costs include non-cash share based payment charges of £8.9m (2017: £7.6m)

Investing to support long term growth 2018 Capex 2019 Capex Guidance £230-250m £242m US Hub US Hub Technology Technology Euro hub Euro hub Barnsley Barnsley Space & Facilities Transformation Systems Space/Facilities Transformation Systems Including Product Sweden & Next Gen Premier into RoW & RoE Launched Buy Now Pay Faster Launched Homepage Recommendation Netherlands Web & New 6 new EU Algorithm sites Style Match Later for UK Refunds Enki Personalisation sites Navigation countries improved

Statement of Financial Position At At 31 August 2018 £m 31 August 2017 Goodwill and other intangible assets 178.0 258.0 Property, plant and equipment 137.4 241.6 Derivative financial assets 1.3 3.8 Deferred tax asset - 9.2 Non-current assets 325.9 503.4 Stock 323.3 407.6 Net current payables (507.1) (452.1) Cash and cash equivalents 42.7 160.3 Derivative financial assets/(liabilities) 3.4 (64.5) Current tax liability (3.0) (5.8) Deferred tax liability (8.2) - Net assets 438.8 287.1

Cash position £m (22.4) 156.5 (213.0) 160.3 (40.0) 42.7 1.3 Opening cash Trade payable EBITDA Underlying working Capex Other Closing cash carryover capital Note: The Group now has in place a £150m RCF available until May 2021, which was not drawn down at the year end

FY19 Guidance  No change to FY19 guidance:  Reported Sales + 20-25%  Retail Margin flat  Capital Expenditure of £230-250m  Tax Rate c.100 BPS above statutory rate  Reported EBIT margin c.4%

Our Product The greatest, most relevant edit of great value fashion to an inclusive 20-something audience  Collusion launched  4505 launched  Newness & fashion focus 300 new brands  ASOS Design c.40% of mix   Face + Body 30 new brands launched this year  including 10 from Estee family Fragrance launched   Stable average basket value

Fashion with Integrity People  Mapping supplier base, transparency • ‘Worker Voice’ helplines, Gender Equality • Work place safety • Second Modern Slavery Statement • Product  80% sustainable cotton this year, 100% before 2025 • ASOS Brands 34% sustainable fibres now • Local actions on chemicals, carbon emissions and • water pollution / waste Recycling (circularity) • - Trained for 100% Design for circularity by 2020 - UK and Germany takeback trials Packaging  Targeting supply side sustainable by 2025 • Outbound bags currently contain 25% recycled • material and are recyclable

Warehousing Building capacity, driving UK Hub Euro Hub efficiency Mezzanine extension Completed extension +2 million capacity +10 million capacity FY18: 25 million additional unit capacity  New Doncaster multi Installation, FY19: Driving efficiency to enable  use facility commissioning & testing reinvestment into proposition +3 million capacity of automation begun Warehouse Cost % Sales Returns Processing US Hub 12.0% 10.0% 10.0% 8.8% 8.5% 7.9% 7.7% Built & commissioned New Poland facility 8.0% 5.9% 5.8% new distribution centre +550k units per week 6.0% +10 million capacity 4.0% New Czech Republic 2.0% facility Automation to follow 0.0% FY12 FY13 FY14 FY15 FY16 FY17 FY18 +550k units per week Target return to c.8%

Tech Best in class tech driving engagement  2,900 Tech releases  Localisation across 200 markets New language sites for Sweden & Netherlands  Denmark & Poland coming next   Enki AI powered conversational interface  Google Assistant product search  Personalisation continues to progress Recommendation algorithms   Very strong app engagement

Our US opportunity Gearing up for a new ASOS US chapter  Atlanta unlocks next stage of our  growth opportunity Segmentation & localisation to follow EU  approach Targeted focus on acquiring fashion  audience Maximise new branded offer  Build foundations for growth in  awareness

Summary  Our four defendable pillars, differentiating our brand  Purpose  Product  Proposition  People  Momentum continues – no change to guidance  Continuing to invest ahead of growth … another step on the road to becoming the world’s number one destination for fashion loving 20- somethings 14

Q&A Please wait for the microphone and then state your name and institution. 15

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