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 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.

GROUP HIGHLIGHTS.

Capital expenditure of INCLUDING £177.2M £323.5M FY20: GROUP HIGHLIGHTS. OF PROPERTY ASSETS FY20 FY19 -12.6% REVENUE △ PCP (£M) (£M) DECREASED GROUP REVENUE £3,957.4 £3,701.9 6.9% Excluding acquisitions, and on a currency GROUP GROSS MARGIN 42.0% 42.8% (80bps) neutral basis, revenue decreased by 12.6%. UNDERLYING EBITDA £302.1 £287.8 5.0% £366.0M UNDERLYING £263.1M UNDERLYING PBT £117.4 £143.3 (18.1%) PRE FREE CASH CAPEX FLOW OF NET DEBT 2020 UNDERLYING EPS 16.2p 17.6p (8.0%) Excluding acquisitions and on a currency neutral REPORTED PBT £143.5 £179.2 (19.9%) VS. basis, underlying EBITDA £273.3M £378.5M was in line with the prior REPORTED EPS 18.5p 21.6p (14.4%) period. IN PRIOR PERIOD NET DEBT 28 APRIL 2019 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: SUMMARY UNDERLYING EBITDA TO PROFIT RECONCILIATION. £M FY20 FY19 CHANGE (%) UNDERLYING EBITDA 302.1 287.8 5.0% DEPRECIATION & AMORTISATION (176.1) (125.4) (40.4%) NET INTEREST (8.6) (19.1) 55.0% UNDERLYING PROFIT BEFORE TAX 117.4 143.3 (18.1%) REALISED FOREIGN EXCHANGE 34.8 22.1 57.5% FOREIGN EXCHANGE FAIR VALUE ADJUSTMENT 21.3 39.7 (46.3%) FAIR VALUE GAIN ON STEP ACQUISITION 20.4 - 0.0% PROFIT ON SALE OF PROPERTIES 54.2 - 0.0% EXCEPTIONAL ITEMS (13.1) (32.6) 59.8% INVESTMENT (COSTS) / INCOME (34.6) 6.7 (616.4%) IFRS 16 ADJUSTMENTS (56.9) - 0.0% REPORTED PROFIT BEFORE TAX 143.5 179.2 (19.9%)

IFRS 16: LEASES IMPACT. £M UNDER IAS 17 TRANSITION IMPACT IMPACT IN THE PERIOD UNDER IFRS 16 CONSOLIDATED INCOME STATEMENT SELLING, DISTRIBUTION AND ADMINISTRATIVE EXPENSES (1,518.3) - (46.0) (1,564.3) EXCEPTIONAL ITEMS (6.3) - (6.8) (13.1) PROFIT ON SALE OF PROPERTIES 109.3 - (55.1) 54.2 FINANCE COSTS (18.4) - (10.9) (29.3) TAXATION (63.8) - 21.3 (42.5) CONSOLIDATED BALANCE SHEET PROPERTY, PLANT AND EQUIPMENT 1,057.3 416.3 (126.0) 1,347.6 RETAINED EARNINGS (1,693.1) 30.7 97.5 (1,564.9) LEASE LIABILITIES - (570.5) (53.6) (624.1) PROVISIONS (480.7) 106.2 38.5 (336.0)

FINANCIAL REVIEW.

FY20: GROUP REVENUE BRIDGE £3,957.4M £97.9M £186.6M £4,100.0M £4,000.0M £3,701.9M (£41.7M) (£3.3M) £16.0M £3,900.0M £3,800.0M £3,700.0M £3,600.0M £3,500.0M FY19 GROUP UK SPORTS PREMIUM EUROPEAN REST OF WORLD WHOLESALE & FY20 GROUP REVENUE RETAIL LIFESTYLE RETAIL RETAIL LICENSING REVENUE Excluding acquisitions and on a currency neutral basis, Group revenue decreased by 12.6%.

FY20: UNDERLYING EBITDA BRIDGE £22.5M £302.1M £340.0M £42.4M £287.8M £320.0M (£5.9M) £300.0M (£7.4M) £280.0M £260.0M £(37.3M) £240.0M £220.0M £200.0M FY19 UK SPORTS PREMIUM EUROPEAN RETAIL REST OF WORLD WHOLESALE & FY20 UNDERLYING UNDERLYING RETAILS LIFESTYLE RETAIL LICENSING EBITDA EBITDA Excluding acquisitions and on a currency neutral basis, Underlying EBITDA is in line with the prior period.

FY20: UK SPORTS RETAIL OVERVIEW REVENUE & GROSS MARGIN £2,203.4M £2,210.0M 1,000 45% PRE-IFRS 16 OPERATING COSTS & UNDERLYING EBITDA 44% £2,205.0M 1,000 CHANGE (%) £M FY20 FY19 43% 42.1% £2,200.0M 1,000 42% 41.0% STORE WAGES 164.2 153.2 +7.2% £2,187.3M 40.4% £2,195.0M 1,000 41% RE VENUE (£M) GROSS MARGIN PREMISES COSTS 249.5 244.2 +2.2% £2,181.5M OTHER COSTS 246.3 249.3 (1.2)% £2,190.0M 1,000 40% TOTAL OPERATING COSTS 660.0 646.6 +2.1% 39% £2,185.0M 1,000 38% UNDERLYING EBITDA 243.3 273.3 (11.0%) 58.1% £2,180.0M 1,000 37% ASSOCIATES (15.9) (8.6) £2,175.0M 1,000 36% UNDERLYING EBITDA 227.4 264.7 (14.1%) £2,170.0M 1,000 35% FY18 FY19 FY20 H1 GROSS MARGIN REVENUE

FY20: PREMIUM LIFESTYLE OVERVIEW REVENUE & GROSS MARGIN GTV 50.0% £1,000.0M 1,000 48.3% REVENUE GROSS MARGIN % £900.0M 1,000 46.2% 45.0% £800.0M 1,000 £700.0M 1,000 PRE-IFRS 16 OPERATING COSTS & UNDERLYING EBITDA GROSS MARGIN REVENUE (£M) 40.0% £600.0M £722.0M 1,000 CHANGE (%) £M FY20 FY19 £500.0M 1,000 £535.3M 35.0% £400.0M 1,000 STORE WAGES 83.6 73.8 +13.3% £300.0M 1,000 PREMISES COSTS 141.2 139.6 +1.1% 33.3% 30.0% OTHER COSTS 119.3 71.8 +66.2% £200.0M 1,000 TOTAL OPERATING COSTS 344.1 285.2 +20.7% £162.1M £100.0M 1,000 25.0% UNDERLYING EBITDA 4.5 (37.9) +111.9% 58.1% FY18 FY19 FY20 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.

FY20: EUROPEAN RETAIL OVERVIEW REVENUE & GROSS MARGIN 44.0% £720.0M 1,000 43.6% 43.0% £700.0M 1,000 £697.7M 42.0% £680.0M 1,000 PRE-IFRS 16 OPERATING COSTS & UNDERLYING EBITDA 41.0% £660.0M 1,000 GROSS MARGIN 40.8% REVENUE (£M) CHANGE (%) 40.0% £M FY20 FY19 £640.0M 1,000 39.0% £620.0M 1,000 STORE WAGES 90.1 89.7 +0.5% £637.2M PREMISES COSTS 92.7 84.8 +9.3% 38.0% £600.0M 1,000 38.4% OTHER COSTS 33.3 57.7 (42.3)% £599.8M 37.0% £580.0M 1,000 TOTAL OPERATING COSTS 216.1 232.2 (6.9)% 36.0% £560.0M 1,000 UNDERLYING EBITDA 51.8 29.3 +76.8% 58.1% £540.0M 35.0% 1,000 FY18 FY19 FY20 GROSS MARGIN REVENUE

FY20: REST OF WORLD OVERVIEW REVENUE & GROSS MARGIN 44.4% £220.0M 1,000 46.0% 40.2% £165.0M 1,000 34.5% PRE-IFRS 16 OPERATING COSTS & UNDERLYING EBITDA 30.0% GROSS MARGIN REVENUE (£M) CHANGE (%) £M FY20 FY19 £110.0M 1,000 23.0% STORE WAGES 16.8 21.1 (20.4%) PREMISES COSTS 19.5 21.0 (7.1%) OTHER COSTS 47.8 45.6 +4.8% £55.0M 1,000 11.5% TOTAL OPERATING COSTS 84.1 87.7 (4.1%) £192.4M £215.9M £174.2M UNDERLYING EBITDA (6.8) (0.9) (655.6)% 58.1% 0.0% £-M0 1,000 FY18 FY19 FY20 GROSS MARGIN REVENUE

FY20: WHOLESALE & LICENSING OVERVIEW REVENUE £180.0M £160.0M £27.5M £25.8M £140.0M PRE-IFRS 16 OPERATING COSTS & UNDERLYING EBITDA £120.0M REVENUE (£M) CHANGE (%) £M FY20 FY19 £100.0M WAGES 13.3 12.4 +7.3% £60.0M £136.0M £134.3M ADVERTISING & PROMOTION 8.2 6.9 +18.6% OTHER COSTS 18.7 16.1 +16.3% £40.0M TOTAL OPERATING COSTS 40.2 35.4 +11.9% £20.0M UNDERLYING EBITDA 25.2 32.6 (22.7)% 58.1% £-M 1,000 FY19 FY20 WHOLESALE LICENSING

FY20: NET DEBT BRIDGE (PRE-IFRS 16) (£336.9M) £378.5M £366.0M £500.0M 1,000 £43.9M £48.5M £400.0M 1,000 £146.2M £18.3M £300.0M 1,000 (£152.6M) £177.2M £25.3M £200.0M 1,000 £100.0M 1,000 £12.9M (£0.5M) (£9.7M) £19.9M (£5.0M) £-M 1,000 (£100.0M) 1,000 (£200.0M) 1,000 (£300.0M) 1,000 FY19 NET DEBT EBITDA & FX WORKING CAPITAL DISPOSAL OF INVESTMENT FINANCE EXCHANGE PURCHASE OF LISTED ACQUISITIONS FREEHOLD OTHER CAPITAL INTEREST & TAX PURCHASE OF FY20 NET DEBT AND OTHER NON- PROPERTIES INCOME INCOME MOVEMENT INVESTMENTS PURCHASES EXPENDITURE FINANCE COSTS OWN SHARES CASH MOVEMENT

THANK YOU.