Slide 1: Interim Results for the Six Months Ended 31 August 2016
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2016 27 SEPTEMBER 2016
Slide 2: Highlights
HIGHLIGHTS - CONTINUED STRONG GROWTH IN REVENUE, UP 40% - FIRST HALF ADJUSTED EBITDA MORE THAN DOUBLED TO £16.5M - FURTHER GROWTH IN ACTIVE CUSTOMERS TO 4.5M 2.
Slide 3: Interim Results - Neil Catto, CFO
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2016 NEIL CATTO CFO
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS REVENUE UP 40% TO £127.3M +41% at CER (H1 2016: £90.8M) STRONG GROWTH IN UK AND INTERNATIONAL REVENUE - UK up 38% - Rest of Europe up 41% (+41% CER) - USA up 93% (+81% CER) - Rest of World up 17% (+27% CER) 55.3% GROSS MARGIN (H1 2016: 60.1%) - Planned investment in price, promo
Slide 5: Summary Income Statement
SUMMARY INCOME STATEMENT - 55.3% gross margin reflects planned investments in price, promotion and customer proposition (350bps) and third party sales (130 bps) - 13.0% Adjusted EBITDA margin after adding back depreciation and amortisation (£2.0m) and share based compensation (£0.5m) 5.
Slide 6: Revenue
REVENUE 51.4 20.5 30.9 H114 Revenue by geographic segment Six months to 31 August (£m) UK Rest of Europe USA Rest of World TOTAL International 58.4 18.3 40.1 H214 67.2 21.6 45.6 H115 UK 127.3 104.6 90.8 45.6 R27 33.6 317 24.0 51710 81.7 48.7 : H215. H116 = H216—sHI17 HY17 HY16 Change 81.7 59.1 38% 1
Slide 7: Operating Costs
OPERATING COSTS OPERATING COSTS AS % REVENUE 7.
Slide 8: EBITDA Margin Development
EBITDA MARGIN DEVELOPMENT - Investing in the customer proposition (price, product promotion, delivery service, product range) to improve lifetime value has accelerated growth and EBITDA margin development 8.
Slide 9: KPIs
KPIs 1 Defined as having shopped in the last 12 months 2 Number of orders in last 12 months divided by number of active customers 3 Defined as the number of orders as a percentage of website sessions 4 Gross sales including VAT/sales tax divided by the number of orders 9.
Slide 10: Cash Flow
CASH FLOW - Strong growth in free cash flow to £10.6m - Free cash flow up 43% year on year - Capital expenditure reflects investment in warehouse and IT platforms 10.
Slide 11: Balance Sheet
BAL ANCE SHEET - Negative net working capital - Capital employed £15.4m (H1 16: £11.5m) excluding excess cash 11.
Slide 12: Capex
CAPEX Capital expenditure £m 12.
Slide 13: Investment in Technology & Data Analytics
INVESTMENT IN TECHNOLOGY & DATA ANALY TICS WEB APP DATA ANALY TICS Improved customer experience 72% sessions now mobile and tablet Provide a more tailored customer experience Greater scalability and stability Increase order frequency and conversion 13.
Slide 14: Outlook
OUTLOOK POSITIVE OUTLOOK FOR THE FULL YEAR, BUILDING ON A STRONG FIRST HALF EXPECT REVENUE GROWTH OF BETWEEN 30% AND 35% INCREASED MARKETING SPEND DRIVING INTERNATIONAL GROWTH INCREASED INVESTMENT IN TECHNOLOGY - Further App enhancements - Increased data analytics FY 17 EBITDA MARGIN AROUND 11% EXPE
Slide 15: Interim Results - Carol Kane, Joint CEO
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2016 CAROL KANE JOINT CEO
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Slide 17: Inclusive Brand
INCLUSIVE BRAND STRONG UNDERSTANDING OF OUR CUSTOMERS’ ST YLE PREFERENCES #MYBOOHOOST YLE FREE SPIRITS STREET STYLERS SHOPAHOLIC GIRL BOSS EFFORTLESS STYLE 17.
Slide 18: Night Boutique Blue
NIGHT BOUTIQUE BLUE AN INCLUSIVE BRAND WITH ST YLES AND FIT TO SUIT EVERY PREFERENCE FIT BASICS 18. TALL PETITE PLUS
Slide 19: Improving Our Customers' Experience
IMPROVING OUR CUSTOMERS’ EXPERIENCE INNOVATION KEEPING PACE WITH CHANGING CUSTOMER PREFERENCES - boohooKIDS and boohooMATERNITY launches - New lingerie and nightwear range - boohooPLUS and boohooPETITE performing strongly - Growing social media following - TV advertising and Stylefix bringing our br
Slide 20: Innovation
INNOVATION boohooKIDS - 350 – 400 styles for girls and boys aged 5 to 12 - Research found 29% UK customers are parents1 - New recruits marketing campaign - Modelled by celebrity daughter Scarlett Thomas #GROWINGINTOTHEBRAND Market research sample of 2, 068 1 Scarlett Thomas 20.
Slide 21: Innovation
INNOVATION APPEALING TO THE SOCIAL GENERATION - Seeing the brand come to life through our #WEAREUS campaign across TV and social media - Over 60 bloggers and influencers in our ‘Style Squads’ - Digital magazine, Stylefix, giving quality editorial content and fashion inspiration anytime, anywhere - G
Slide 22: Innovation
INNOVATION BRAND COLLABORATION DRIVING ENGAGEMENT - Jordyn Woods - International model and blogger with 2m Instagram followers - Inclusive clothing range – the first to cover all sizes from 8 to 24 22.
Slide 23: Investment
INVESTMENT FANTASTIC FEEDBACK ON THE APP - 1.4m downloads to date, 500k active monthly users, 50k active daily users “I’ve only - New features added recently started - Great customer feedback - 4.7 average rating in the UK shopping at boohoo and - Further developments planned I’m in loveeee” “Really
Slide 24: Investment
INVESTMENT INTERNATIONAL EXPANSION - International sales of nearly £50m - Going direct to our customers with the US college campus tour #boohooOnTheRoad - Third party sales helping build greater brand awareness internationally - Optimising price and promotion to drive sales - Influencers driving sal
Slide 25: International
INSIGHT UNDERSTANDING OUR CUSTOMERS WHAT INSPIRES THEM - Up to date fashion - Social influencers THE LEADING ONLINE FASHION WHAT MATTERS TO THEM - Incredible prices BRAND FOR ALL 16 - 24 YEAR OLDS - Unbeatable choice - Fantastic service We are the young inclusive brand. Think of us as your fashion b
Slide 26: Summary
SUMMARY THE VOICE AND ST YLE OF THE SOCIAL GENERATION - A leading retailer operating in an attractive and growing eCommerce market - Powerful and inclusive brand that connects with loyal customers - Cash generative business with strong track record of growth in revenue and profit - Significant growt
Slide 27: Appendix
boohoo com
Slide 28: boohoo Employment Policies
boohoo EMPLOYMENT POLICIES MAINTAINING HIGH STANDARDS IN THE WORKPLACE HIGH PROPORTION OF PERMANENT EMPLOYEES - boohoo aims to maintain a ratio of 80% permanent employees to 20% agency workers during the majority of the year - Additional agency workers will be recruited during seasonally busy period
Slide 29: Disclaimer
DISCL AIMER Certain statements included or incorporated by reference within this presentation may constitute “forward-looking statements” in respect of the Group’s operations, performance, prospects and/or financial condition. By their nature, forward-looking statements involve a number of risks, un
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