2 6 J a d e d n u a e n r y s 2 k 0 1 e 9 w e 2 | 5 2 1 | M n a o r i c t h a t n 2 0 e 1 s e 9 r P | s t T l u e s d e R B a l k a u e r n P n l A c
90° 2 Ted Baker Plc YEAR IN REVIEW Annual Results Presentation 52 weeks ended 26 January 2019 60° 26 JAN 27 JAN 2019 2018 VAR £M £M % Group sales revenue 617.4 591.7 4.4 30° Profjt before tax and exceptional items * 63.0 73.5 (14.3) Profjt before tax 50.9 68.8 (26.1) Adjusted EPS 114.2p 127.7p (10.6) 0° Basic EPS 91.5p 119.0p (23.1) Full year dividend 58.6p 60.1p (2.5) – Credible performance despite very diffjcult trading conditions across global markets 30° – One-off charges impacted reported profjt – We are continuing to evolve the business with the changing consumer environment – New systems and platforms now in place to support continued long-term development 60° – Continuing to put the brand fjrst and execute our long-term growth strategy SPRING SUMMER 2019 *Further detail on exceptional items is provided in Appendix 2 90°
90° 3 Ted Baker Plc STRATEGY Annual Results Presentation 52 weeks ended 26 January 2019 60° CUSTOMER & BRAND CENTRIC APPROACH 30° MULTIPLE PATHS TO MARKET FULLY OMNI-CHANNEL 0° SELECTIVE SPACE GROWTH GLOBAL LICENCE PARTNERS LEVERAGE INVESTMENTS 30° LONG-TERM FINANCIAL SUSTAINABILITY 60° TED BAKER: COLOUR BY NUMBERS 90°
90° 4 Ted Baker Plc INCOME BY CHANNEL Annual Results Presentation 52 weeks ended 26 January 2019 60° 26 JAN 27 JAN CONSTANT 2019 2018 VAR CURRENCY £M £M % VAR % Retail 461.0 442.5 4.2 4.8 30° Wholesale 156.5 149.2 4.8 5.7 SALES REVENUE 617.4 591.7 4.4 5.0 Licence income* 22.1 21.4 3.1 - 0° TOTAL INCOME 639.5 613.1 4.3 5.0 26 JAN 27 JAN 2019 % OF 2018 % OF VAR 30° £M SALES £M SALES % Menswear 235.2 38.1 249.7 42.2 (5.8) Womenswear 382.2 61.9 342.0 57.8 11.8 60° SALES REVENUE 617.4 100.0 591.7 100.0 4.4 SS19 MENSWEAR *Underlying growth in licence income was 5.5% adjusting for the acquisition of the footwear licence on 1 January 2019 90°
90° 5 Ted Baker Plc REVENUE BY TERRITORY Annual Results Presentation 52 weeks ended 26 January 2019 60° – In the UK and Europe, retail sales increased 26 JAN 27 JAN CONSTANT despite diffjcult trading conditions. 2019 2018 VAR CURRENCY Wholesale sales increased, refmecting a UK & EUROPE £M £M % VAR % good performance from sales to trustees, Retail 315.0 301.1 4.6 4.5 particularly within our European export 30° Wholesale 99.7 94.1 6.0 6.0 business and to trustees with a strong online proposition Sales Revenue 414.7 395.2 4.9 4.8 NORTH AMERICA – In North America, sales from our retail division increased driven by our continued Retail 125.7 120.1 4.7 7.0 expansion. Wholesale sales increased, Wholesale 56.8 55.1 3.1 5.4 refmecting a strengthening relationship with 0° key trustees, despite trustees taking a more Sales Revenue 182.4 175.2 4.1 6.5 conservative stance in the second half and REST OF WORLD * the impact of timing of deliveries Retail 20.3 21.3 (4.7) (2.9) – Across the Rest of World, sales decreased Wholesale - - - - 30° as we continue to refjne and develop our Sales Revenue 20.3 21.3 (4.7) (2.9) strategy for success in this market GROUP UK & Europe 414.7 395.2 4.9 4.8 North America 182.4 175.2 4.1 6.5 60° Rest of World 20.3 21.3 (4.7) (2.9) Sales Revenue 617.4 591.7 4.4 5.0 * Rest of World includes; Asia and Africa 90°
90° 6 Ted Baker Plc RETAIL REVENUE Annual Results Presentation 52 weeks ended 26 January 2019 60° 26 JAN 27 JAN CONSTANT 26 JAN 27 JAN CONSTANT 2019 2018 VAR CURRENCY REST OF 2019 2018 VAR CURRENCY UK & EUROPE £M £M % VAR % WORLD £M £M % VAR % Stores 217.0 218.6 (0.7) (0.9) Stores 17.2 19.0 (9.5) (7.8) 30° E-commerce 98.0 82.5 18.8 18.8 E-commerce 3.1 2.3 34.8 38.4 Retail revenue 315.0 301.1 4.6 4.5 Retail revenue 20.3 21.3 (4.7) (2.9) Sales per sq. ft 796 849 (6.2) (6.5) Sales per sq. ft 627 599 4.7 6.7 Average sq. ft 272,554 257,367 5.9 Average sq. ft 27,414 31,742 (13.6) 0° NORTH AMERICA GROUP Stores 105.1 103.8 1.3 3.7 Stores 339.3 341.4 (0.6) 0.1 E-commerce 20.6 16.3 26.4 28.5 E-commerce 121.7 101.1 20.4 20.8 Retail revenue 125.7 120.1 4.7 7.0 Retail revenue 461.0 442.5 4.2 4.8 30° Sales per sq. ft 798 857 (6.9) (4.7) Sales per sq. ft 786 832 (5.5) (4.9) Average sq. ft 131,678 121,081 8.8 Average sq. ft 431,646 410,190 5.2 – In the UK & Europe, retail sales increased despite the widely – In North America, retail sales growth was driven by continued reported ongoing diffjcult trading conditions, the unseasonable expansion and a strong performance from our e-commerce business. 60° weather at different points throughout the period, and the impact Store performance was impacted by unseasonable weather at different on our concession business with House of Fraser in the lead up points throughout the period to its administration in August 2018 – In Rest of World, the decrease in retail sales refmects the transition to a – E-commerce sales increased, demonstrating how e-commerce sales are distributor in South Korea in the prior year and further refjnement of an integral part of the retail proposition in the UK and European markets our store portfolio in Asia 90°
90° 7 Ted Baker Plc GROUP INCOME STATEMENT Annual Results Presentation 52 weeks ended 26 January 2019 60° 26 JAN 27 JAN 2019 2018 VAR £M £M % Revenue 617.4 591.7 4.4 Gross profjt 360.1 360.8 (0.2) 30° Gross margin 58.3% 61.0% (270bps) Operating expenses (317.4) (307.5) (3.2) Licence income 22.1 21.4 3.1 Other operating income 1.8 0.6 184.7 0° OPERATING PROFIT BEFORE 66.6 75.4 (11.7) EXCEPTIONAL ITEMS % of revenue 10.8% 12.7% (190bps) Net fjnance expense (4.2) (2.5) (66.5) 30° Share of joint venture profjt 0.5 0.6 (6.3) PROFIT BEFORE TAX 63.0 73.5 (14.3) AND EXCEPTIONAL ITEMS Exceptional items (12.1) (4.7) 158.9 60° (26.1) INDIA: NEW DELHI PROFIT BEFORE TAX 50.9 68.8 90°
90° 8 Ted Baker Plc GROSS MARGIN BY CHANNEL Annual Results Presentation 52 weeks ended 26 January 2019 60° – As expected, the retail gross margin fell 26 JAN 27 JAN as the prior year had benefjtted from an 2019 2018 VAR improved full price sell through. The resultant % % POINTS margin was further reduced by an increase Retail* 63.1% 67.0% (390bps) in promotional activity in response to the Wholesale 44.1% 43.3% 80bps 30° diffjcult trading conditions and the £5.0m write-down in inventories Group 58.3% 61.0% (270bps) – Wholesale gross margin increased, refmecting * Underlying retail gross margin (excluding the impact of the £5.0m inventory write-down) was 64.2%. This results in an underlying composite gross margin of 59.1% a higher mix of sales to trustee partners which carry a higher margin compared 70 0° to retail licence partners and some foreign exchange benefjts 65 60 30° Gross margin % 55 Retail Gross Margin 50 Underlying Retail Gross Margin Wholesale Gross Margin 60° 45 Group Gross Margin Underlying Group Gross Margin 40 31-Jan-15 30-Jan-16 28-Jan-17 27-Jan-18 26-Jan-19 90°
90° 9 Ted Baker Plc OPERATING EXPENSES Annual Results Presentation 52 weeks ended 26 January 2019 60° 26 JAN 27 JAN CONSTANT 2019 2018 VAR CURRENCY £M £M % VAR % Distribution costs* (159.4) (153.9) 3.6 4.1 Administrative costs* (32.9) (32.7) 0.6 1.2 30° Depreciation (25.1) (23.3) 7.7 8.5 Payroll (100.0) (97.6) 2.5 3.1 Performance related bonus - - - - TOTAL OPERATING EXPENSES (317.4) (307.5) 3.2 3.2 0° Operating exp as a % of sales 51.4% 52.0% 60bps – Distribution costs increased by 3.6% and – Dual-running costs incurred in respect of as a percentage of sales were 25.8% (2018: our new North American distribution centre 26.0%). This refmects the variable elements of and the systems roll-out were £2.8m (2018: 30° costs in our business model £2.1m). No further dual-running costs are expected to arise in the next fjnancial year – Adminstrative costs increased by 0.6% and as a percentage of sales were 5.3% (2018: 5.5%). This refmects the growth of central functions, both in the UK and overseas and investment 60° in customer engagement. The increase has been TED BAKER: partially offset by a measured and controlled COLOUR BY NUMBERS approach to multiple cost effjciencies * Distribution and administrative costs exclude depreciation, payroll, bonus and exceptional items 90°
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