FY20 PRELIMINARY RESULTS PACK. For 52 weeks ended 26 April 2020 20 - - PowerPoint PPT Presentation

FY20 PRELIMINARY RESULTS PACK.

For 52 weeks ended 26 April 2020 20 August 2020

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

• perations. 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

• r implied by these statements, beliefs or opinions.

Forward-looking statements speak only as at the date

• f 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.

GROUP HIGHLIGHTS.

FY20: GROUP HIGHLIGHTS.

Excluding acquisitions, and on a currency neutral basis, revenue decreased by 12.6%.

REVENUE DECREASED

• 12.6%

Excluding acquisitions and on a currency neutral basis, underlying EBITDA was in line with the prior period.

£263.1M £273.3M

UNDERLYING FREE CASH FLOW OF VS. IN PRIOR PERIOD PRE CAPEX NET DEBT 2020

£366.0M

NET DEBT 28 APRIL 2019

£378.5M

INCLUDING £177.2M OF PROPERTY ASSETS

£323.5M

Capital expenditure of

• 1. Underlying 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.

FY20 (£M) £3,957.4 42.0% £117.4 16.2p 18.5p £3,701.9 42.8% £143.3 17.6p 21.6p 6.9% (80bps) (18.1%) (8.0%) (14.4%) GROUP REVENUE GROUP GROSS MARGIN UNDERLYING PBT UNDERLYING EPS REPORTED EPS UNDERLYING EBITDA REPORTED PBT FY19 (£M) △ PCP £302.1 £143.5 £287.8 £179.2 5.0% (19.9%)

FY20: SUMMARY UNDERLYING EBITDA TO PROFIT RECONCILIATION.

FY20 (176.1) 34.8 (8.6) 21.3 20.4 54.2 (13.1) (34.6) (56.9) (125.4) 22.1 (19.1) 39.7

• (32.6)

6.7

• DEPRECIATION & AMORTISATION

REALISED FOREIGN EXCHANGE NET INTEREST FOREIGN EXCHANGE FAIR VALUE ADJUSTMENT FAIR VALUE GAIN ON STEP ACQUISITION PROFIT ON SALE OF PROPERTIES EXCEPTIONAL ITEMS INVESTMENT (COSTS) / INCOME IFRS 16 ADJUSTMENTS UNDERLYING EBITDA REPORTED PROFIT BEFORE TAX UNDERLYING PROFIT BEFORE TAX FY19 £M CHANGE (%) 302.1 143.5 117.4 287.8 179.2 143.3 5.0% (18.1%) (19.9%) (40.4%) 57.5% 55.0% (46.3%) 0.0% 0.0% 59.8% (616.4%) 0.0%

IFRS 16: LEASES IMPACT.

UNDER IAS 17 (1,518.3) 109.3 1,057.3 (6.3) (18.4) (63.8) (1,693.1)

• (480.7)
• 416.3
• 30.7

(570.5) 106.2 SELLING, DISTRIBUTION AND ADMINISTRATIVE EXPENSES PROFIT ON SALE OF PROPERTIES PROPERTY, PLANT AND EQUIPMENT EXCEPTIONAL ITEMS FINANCE COSTS TAXATION RETAINED EARNINGS LEASE LIABILITIES PROVISIONS CONSOLIDATED INCOME STATEMENT CONSOLIDATED BALANCE SHEET TRANSITION IMPACT £M IMPACT IN THE PERIOD (46.0) (55.1) (126.0) (6.8) (10.9) 21.3 97.5 (53.6) 38.5 UNDER IFRS 16 (1,564.3) 54.2 1,347.6 (13.1) (29.3) (42.5) (1,564.9) (624.1) (336.0)

FINANCIAL REVIEW.

FY20: GROUP REVENUE BRIDGE

Excluding acquisitions and on a currency neutral basis, Group revenue decreased by 12.6%.

FY19 GROUP REVENUE

£3,701.9M £16.0M £186.6M £97.9M (£41.7M) (£3.3M) £3,957.4M

UK SPORTS RETAIL PREMIUM LIFESTYLE EUROPEAN RETAIL WHOLESALE & LICENSING FY20 GROUP REVENUE REST OF WORLD RETAIL

£4,100.0M £4,000.0M £3,900.0M £3,800.0M £3,700.0M £3,600.0M £3,500.0M

FY20: UNDERLYING EBITDA BRIDGE

Excluding acquisitions and on a currency neutral basis, Underlying EBITDA is in line with the prior period.

FY19 UNDERLYING EBITDA

£287.8M £(37.3M) £42.4M £22.5M (£5.9M) (£7.4M) £302.1M

UK SPORTS RETAILS PREMIUM LIFESTYLE EUROPEAN RETAIL WHOLESALE & LICENSING REST OF WORLD RETAIL FY20 UNDERLYING EBITDA

£200.0M £260.0M £220.0M £280.0M £300.0M £240.0M £320.0M £340.0M

FY20: UK SPORTS RETAIL OVERVIEW

REVENUE & GROSS MARGIN PRE-IFRS 16 OPERATING COSTS & UNDERLYING EBITDA

1,000

£2,170.0M

1,000

£2,210.0M

1,000

£2,205.0M

1,000

£2,200.0M

1,000

£2,195.0M

1,000

£2,190.0M

1,000

£2,185.0M

1,000

£2,180.0M

1,000

£2,175.0M

FY18 35% 36% 37% 38% 39% 40% 41% 42% 43% 44% 45% FY19 FY20 H1

£2,181.5M

REVENUE (£M) GROSS MARGIN

42.1% 41.0%

£2,187.3M £2,203.4M

FY20 £M 164.2 153.2 249.5 244.2 +7.2% +2.2% 58.1% STORE WAGES PREMISES COSTS OTHER COSTS ASSOCIATES TOTAL OPERATING COSTS UNDERLYING EBITDA UNDERLYING EBITDA FY19 CHANGE (%) 246.3 (15.9) (8.6) 660.0 243.3 227.4 249.3 (1.2)% 646.6 273.3 (11.0%) 264.7 (14.1%) +2.1%

40.4% REVENUE GROSS MARGIN

FY20: PREMIUM LIFESTYLE OVERVIEW

REVENUE & GROSS MARGIN PRE-IFRS 16 OPERATING COSTS & UNDERLYING EBITDA

FY18 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% FY19 FY20

£162.1M £535.3M £722.0M

REVENUE (£M) GROSS MARGIN FY20 £M 83.6 73.8 141.2 139.6 +13.3% +1.1% 58.1% STORE WAGES PREMISES COSTS OTHER COSTS TOTAL OPERATING COSTS UNDERLYING EBITDA FY19 CHANGE (%) 119.3 344.1 4.5 71.8 +66.2% 285.2 (37.9) +111.9% +20.7%

GTV REVENUE GROSS MARGIN %

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.

1,000

£100.0M

1,000

£200.0M

1,000

£300.0M

1,000

£400.0M

1,000

£500.0M

1,000

£600.0M

1,000

£700.0M

1,000

£800.0M

1,000

£900.0M

1,000

£1,000.0M

33.3% 46.2% 48.3%

FY20: EUROPEAN RETAIL OVERVIEW

REVENUE & GROSS MARGIN PRE-IFRS 16 OPERATING COSTS & UNDERLYING EBITDA

FY18 35.0% 36.0% 37.0% 38.0% 39.0% 40.0% 41.0% 42.0% 43.0% 44.0% FY19 FY20

REVENUE (£M) GROSS MARGIN FY20 £M 90.1 89.7 92.7 84.8 +0.5% +9.3% 58.1% STORE WAGES PREMISES COSTS OTHER COSTS TOTAL OPERATING COSTS UNDERLYING EBITDA FY19 CHANGE (%) 33.3 216.1 51.8 57.7 (42.3)% 232.2 29.3 +76.8% (6.9)%

40.8% 43.6% 38.4%

1,000

£680.0M

1,000

£720.0M

1,000

£700.0M

1,000

£660.0M

1,000

£640.0M

1,000

£620.0M

1,000

£600.0M

1,000

£580.0M

1,000

£560.0M

1,000

£540.0M

£637.2M £599.8M £697.7M

REVENUE GROSS MARGIN

FY20: REST OF WORLD OVERVIEW

REVENUE & GROSS MARGIN PRE-IFRS 16 OPERATING COSTS & UNDERLYING EBITDA

FY18 11.5% 0.0% 23.0% 34.5% 46.0% FY19 FY20

£192.4M £215.9M £174.2M

REVENUE (£M) GROSS MARGIN FY20 £M 16.8 21.1 19.5 21.0 (20.4%) (7.1%) 58.1% STORE WAGES PREMISES COSTS OTHER COSTS TOTAL OPERATING COSTS UNDERLYING EBITDA FY19 CHANGE (%) 47.8 84.1 (6.8) 45.6 +4.8% 87.7 (0.9) (655.6)% (4.1%)

30.0% 40.2% 44.4%

1,000

£220.0M

1,000

£165.0M

1,000

£110.0M

1,000

£55.0M

1,000

£-M0

REVENUE GROSS MARGIN

FY20: WHOLESALE & LICENSING OVERVIEW

REVENUE PRE-IFRS 16 OPERATING COSTS & UNDERLYING EBITDA

1,000

£-M £20.0M FY19 WHOLESALE LICENSING FY20 £60.0M £120.0M £140.0M £160.0M £180.0M £40.0M £100.0M

REVENUE (£M) FY20 £M 13.3 12.4 8.2 6.9 +7.3% +18.6% 58.1% WAGES ADVERTISING & PROMOTION OTHER COSTS TOTAL OPERATING COSTS UNDERLYING EBITDA FY19 CHANGE (%) 18.7 40.2 25.2 16.1 +16.3% 35.4 32.6 (22.7)% +11.9%

£136.0M £134.3M £25.8M £27.5M

FY20: NET DEBT BRIDGE (PRE-IFRS 16)

(£300.0M)

(£200.0M)

(£100.0M)

£-M

£100.0M

£200.0M

£300.0M

£400.0M

£500.0M

£378.5M (£336.9M) £25.3M (£152.6M) (£0.5M) (£9.7M) (£5.0M) £19.9M £12.9M £177.2M £146.2M £18.3M £48.5M £43.9M £366.0M

THANK YOU.