Slide 1: Preliminary FY 2021 Results & Q1 2022 Trading Update
PRELIMINARY FY 2021 RESULTS Preliminary FY 2021 Results Q1 2022 Trading Update 21 April 2022 Strictly privileged & confidential
Slide 2: Preliminary FY 2021 Results
Preliminary FY 2021 Results • FY 2021 Highlights • Group Financial Review • Divisional Review • Q1 2022 Trading Update Presented by: • Matthew Moulding (Chief Executive Officer) • John Gallemore (Group Chief Financial Officer) • Rachel Horsefield (CEO, THG Beauty) • Lucy Gorman (CEO, THG Nutrition)
Slide 3: FY 2021 Highlights
FY 2021 Highlights • Record financial performance with Group Sales by division revenue of £2.2bn, +38.1% YoY. On a 2-year basis, sales growth of 95.1% across all YoY 2 Yr business units FY FY YoY 2 Yr £’m Growth Growth 2021 2020 Growth Growth • All divisions delivered organic growth against CCY CCY
Slide 4: Operational and Strategic Highlights
Operational and Strategic Highlights • Scaled revenue and expanded the business model ahead of targets stated at the September 2020 IPO • Strong growth in customers with 16.4m active THG Beauty and THG Nutrition D2C customers, +95% vs FY 2019 • Integration of 2021 acquisitions Dermstore, Bentley Lab
Slide 5: Building and scaling international brands
Building and scaling international brands THG Beauty revenue 1,118 THG Nutrition revenue 660 R 562 AG 21%C + GR 752 CA 8% 413 +4 344 351 478 251 379 253 155 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Note: Above numbers and tables subject to rounding. Currency £m. Large High Stable
Slide 6: THG’s 2030 Sustainability Strategy
THG’s 2030 Sustainability Strategy Reflections and progress • Commitment to achieve 100% THG ECO reusable, recyclable or ng data and priv compostable packaging for THG tecti acy Pro own brands by 2025 • Member of the Business Ambition for 1.5 C campaign >360,000 tonnes of carbon credits Ens • a l t
Slide 7: Group Financial Review
PRELIMINARY FY 2021 RESULTS Group Financial Review 7
Slide 8: Group Income Statement: Group revenues
GROUP FINANCIAL REVIEW Revenue by Division Group Income Statement 4% 4% 6% 6% 9% 8% • Group revenues increased 38.1% Beauty from £1.6bn to £2.2bn, driven by strong Nutrition demand in our core markets 51% 47% Ingenuity OnD emand • Organic growth delivered in all divisions and supplemented by the con
Slide 9: Group Income Statement: Gross profit
GROUP FINANCIAL REVIEW 2021 2020 Group Income Statement £’m • Gross profit of £974.8m, +33.6% on the prior Revenue 2,179.9 1,613.6 +35.1% year, with a broadly stable gross profit margin of 44.7% Cost of sales (1,205.1) (884.0) +36.3% • Gross profit margin broadly in line with prior year, despite the
Slide 10: Group Income Statement: Distribution costs
GROUP FINANCIAL REVIEW 2021 2020 Group Income Statement £’m • Distribution costs as a percentage of sales Revenue 2,179.9 1,613.6 +35.1% decreased 70bps to 16.9% of sales, reflecting the automation investment in THG’s global Cost of sales (1,205.1) (884.0) +36.3% fulfilment network and ongoing netwo
Slide 11: FX Impact
GROUP FINANCIAL REVIEW Japanese Yen 2 year high, forward hedging defers effect FX Impact 16 0 15 0 Yen to GBP • High international participation can drive currency 14 0 fluctuations in both sales and EBITDA. As the pound has 13 0 strengthened, we have seen headwinds in our reported 12 0 Jan 20 Apr 2
Slide 12: Adjusting Items
GROUP FINANCIAL REVIEW 2021 Adjusting Items £’m • Non-cash impairment primarily relates to goodwill Adjusted EBITDA 161.3 in some legacy non-core acquisitions. There were no impairments identified within Beauty, Nutrition Depreciation (70.5) or Ingenuity Amortisation (99.0) • Distribution costs rela
Slide 13: Cashflow Summary
GROUP FINANCIAL REVIEW 760.2 Cashflow Summary • Closing net cash position of £44.4m (excluding lease liabilities), with strong liquidity available through cash on hand of £536.8m plus the additional £170m undrawn revolving credit facility 161.3 • Operating cash inflow of £96m, following (65.3) tempo
Slide 14: Working Capital
GROUP FINANCIAL REVIEW Stock Days 16 0 Working Capital 12 0 80 • Working capital values are closely aligned to prior 40 periods but for a temporary investment in stock 0 De c-18 Jun -1 9 De c-19 Jun -2 0 De c-20 Jun -2 1 De c-21 • Stock days have been historically maintained at c120 days, with an el
Slide 15: Capital Expenditure
GROUP FINANCIAL REVIEW Group capex as a % of revenue Capital Expenditure 15.5% 14.8% • Capex was elevated above historic levels in the year reflecting investment in the global 9.7% fulfillment network expansion programme 8.7% 8.7% • Expansionary capex in FY 2020 – FY 2022 largely relates to the roll
Slide 16: Divisional Review
PRELIMINARY FY 2021 RESULTS Divisional Review 16
Slide 17: Preliminary FY 2021 Results
PRELIMINARY FY 2021 RESULTS 17
Slide 18: Digital strategic at the centre of global beauty
Digital Strategic at the centre of global beauty >3.0mINSTAGRAM £1,118m SALES FY 2021 9.2m A C T I V E C U S T OME R S F OL L OWE R S + 5 2 % Y OY + 2 . 3 m Y OY +48% CAGR (2016 – 2021) BEST-IN-CLASS 17.1m C U S T OME R OR DE R S IN HOUSE PRODUCTION INNOVATION & £60 A OV 2 0 2 1 + 4 M Y OY ( + 3 1 %
Slide 19: THG Beauty operates in a highly attractive and defensive market
THG Beauty operates in a highly attractive and defensive market Prestige beauty continues Online growth well above to grow robustly the overall category Addressable market size Online penetration rate(1) Total addressable £150bn 18.50% beauty market was £374bn in 2019 7.0% CAGR Online multi-brand 10
Slide 20: Building the #1 global D2C platform in beauty: Dermstore Case Study
Building the #1 global D2C platform in beauty Dermstore Case Study • THG Beauty completed the acquisition of Dermstore, the leading US pure-play online prestige and professional skincare retailer, in February 2021 • Facilitated a much-strengthened position in the US online beauty market, with over 1
Slide 21: Cult Beauty: The favoured partner for Indie Brands
Cult Beauty: The favoured partner for Indie Brands Cult Beauty Case Study • The acquisition in August 2021 provided THG Beauty with a much- strengthened position in the UK online beauty market and an opportunity to broaden consumer choice due to Cult Beauty’s distinguished brand portfolio • Cult Bea
Slide 22: Preliminary FY 2021 Results
PRELIMINARY FY 2021 RESULTS 22
Slide 23: The world’s largest online sports nutrition brand
The world’s largest online sports nutrition brand(1) 7.3m+ G L OB A L S OC I A L ME DI A £660m SALES FY 2021 7.2m A C T I V E C U S T OME R S F OL L OWE R S + 2 1 % Y OY + 0 . 9 m Y OY +21% CAGR (2016 – 2021) MYPROTEIN 13.9m RANKED #1 ACROSS ALL £46 C U S T OME R OR DE R S PURCHASE DRIVERS A OV 2 0
Slide 24: Sports nutrition market sold via e-commerce expected to grow 3-4x by 2030
Sports nutrition market sold via e-commerce expected to grow 3-4x by 2030 Strong market proposition with 2030 vs 2020 increasing Brand Awareness in major markets ~£40bn GLOBAL SPORTS NUTRITION Myprotein one of the top 3 in Brand Awareness MARKET scores in 10 of our top 12 markets ~8-10% CAGR (20—30)
Slide 25: In-house manufacturing provides THG Nutrition with a highly advantaged business model
In-house manufacturing provides THG Nutrition with a highly advantaged business model • New product innovation informed by millions of daily demand insights from THG Nutrition’s active customer base • THG has the capabilities to produce supplements, bars, vitamins, drinks and flavours in-house, acco
Slide 26: Myprotein’s apps are driving higher customer value
Myprotein’s apps are driving higher customer value App launched in early 2020 Leading to higher engagement and improved AOVs 4.0m 14% +7% Higher AOV for app users than website users (2) 3.5m 12% 3.0m 10% 2.5m 8% -14% Time between orders(3) 2.0m 6% 1.5m 1.0m 4% 2.6x Higher return on push notification
Slide 27: Ingenuity mission statement
PRELIMINARY FY 2021 RESULTS “To deliver an enterprise-grade end-to-end solution for international ecommerce, powering the Direct to Consumer technology, infrastructure and proposition for brands to launch and scale into new markets across the globe” 27
Slide 28: THG Ingenuity Model Overview – A Business in a Box
Ingenuity Commerce: THG Ingenuity Model Overview – A Business in a Box • End-to-end technology services charged to 3rd party FY 2021 Sales £194.3m brand owners and retailers across a broad cross- section of categories, across major geographies for digital commerce solutions. • Multi-year contracts (
Slide 29: Highly recurring revenue with a growing international presence
Highly recurring revenue with a growing international presence, strong order book visibility £70m 200 Annual Revenue Run-rate(1) Number of Live Websites(3) £60m 150 £50m £40m 100 £30m £20m 50 £10m £0m 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 21 21 21 21 19 20 20 20 20 2
Slide 30: Our Growth is supported by a Global Infrastructure Network
Our Growth is supported by a Global Infrastructure Network… MAP KEY: Production Site Fulfilment Site Content Production Office Luxury Hotel / Spa Hosting Locations North America: Europe: Vancouver, Canada Oslo, Norway Toronto, Canada Paris, France Montreal, Canada Berlin, Germany Washington, DC, USA
Slide 31: Extending Global Footprint
THG / INGENUITY THG New Jersey • 350k sq ft automated facility opened in Q1 2022 (automation in 2023) Extending Global Footprint • A key piece in the Group’s US infrastructure enabling delivery to 94% of • Significant investment well progressed in Zipcodes(1) in 2 days on a standard service fulfilme
Slide 32: UK Automation Cost Per Unit benefits
FY 2021 Investment • Substantial additional capacity delivered across the UK network UK Automation Cost Per • Operating cost levels maintained through investment in automation offsetting the rising Unit (‘CPU’) benefits labour cost base and capacity cost • Total UK network CPU for 2022 is expected t
Slide 33: Strategic Priorities: Global fulfilment solutions
THG Ingenuity - Fulfilment only solutions THG Ingenuity’s Global Fulfilment solution encompasses every aspect of international Strategic Priorities order processing, tracking and delivery into territories across the globe Global fulfilment solutions • Warehousing and distribution • Manual or automat
Slide 34: Marketing & Influencers
PRELIMINARY FY 2021 RESULTS Marketing & Influencers 34
Slide 35: THG Society - Leveraging influencer marketing
THG Society - Leveraging influencer marketing to… Reach new markets Expand share of voice Increase brand awareness Develop a passionate community and fuel trust Generate sales through product promotion to a relevant audience Optimise marketing spend THG Society is THG Ingenuity’s 360 influencer mark
Slide 36: Marketing - Growing sales efficiently
THG / Marketing - Growing sales efficiently • Finding the best route to market - acquiring, engaging and retaining customers. Unlocking growth through a digital channel mix optimised for the full customer journey • Powered by an ecosystem of proprietary built marketing technology combined with an ev
Slide 37: Q1 2022 Trading Update: Outlook and Guidance
PRELIMINARY FY 2021 RESULTS Q1 2022 Trading Update Outlook and Guidance 37
Slide 38: Q1 2022 Highlights
Q1 2022 Highlights Revenue by division • Revenue growth of +17.2% YoY and +87.9% YoY 2 Yr Q1 Q1 YoY 2 Yr over a 2-year period, a strong result £’m 2022 2021 Growth Growth Growth Growth considering the particularly challenging CCY CCY comparable global lockdown period in 2021, with the long-term tren
Slide 39: FY 2022 and Medium-Term Outlook and Guidance
2022 PRIORITIES FY 2022 Medium-Term Outlook and Guidance Revenue growth* (%) c.22.0% - 25.0% c.20.0% – 25.0% Adj. EBITDA** margin (%) c.6.0% c.9.0% - 10.0% • The full year effect of anticipated improvements primarily expected in the second half across whey commodity prices, Net finance costs (incl l
Slide 40: Preliminary FY 2021 Results & Q1 2022 Trading Update Summary
Preliminary FY 2021 Results & Q1 2022 Trading Update Summary • Record financial performance with Group revenue of £2.2bn, +38.1% YoY. On a 2 year basis, sales growth of 95.1% across all business units • All divisions delivered organic growth against challenging comparatives during FY 2021 • Strong l
Slide 41: Thank you
PRELIMINARY FY 2021 RESULTS Thank you
Slide 42: Appendix
PRELIMINARY FY 2021 RESULTS Appendix
Slide 43: Non-financial KPIs
APPENDIX Non-financial KPIs 2021 2020 2019 THG Ingenuity Number of websites(1) 187 89 21 THG Beauty(2) Active customers (millions)(3) 9.2 6.9 4.1 Number of orders (millions)(4) 17.1 13.1 8.3 Average order value (£)(5) 60 55 51 THG Nutrition Active customers (millions) 7.2 6.3 4.3 Number of orders (m
Slide 44: Glossary
Glossary Terms Meaning means the non-GAAP measure which is defined as Earnings Before Interest, Taxes, Adjusted EBITDA Depreciation, and Amortisation and adjusting items AutoStore means AutoStore AS, a warehouse robotics company means Bentley Laboratories LLC, an innovative developer and manufacture
Slide 45: Important Notice
IMPORTANT NOTICE: THIS PRESENTATION IS CONFIDENTIAL AND IS NOT AN OFFER OR THE SOLICITATION OF AN OFFER TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES. This presentation may include "forward-looking statements" in respect of the operations, performance, prospects and/or financial condition of THG PLC (
Slide 46: Preliminary FY 2021 Results & Q1 2022 Trading Update
PRELIMINARY FY 2021 RESULTS Preliminary FY 2021 Results Q1 2022 Trading Update 21 April 2022 Strictly privileged & confidential