Slide 1: Next
Next January 2020
Slide 2: Total sales 4,362
£m 2020 Total sales 4,362 Operating profit 772 Interest (43) Profit before tax 729 Taxation (135) Profit after tax 594 EPS (underlying) 459.8p The financial information presented excludes IFRS 16 Brand Full Price 2019 +4.0% 4,221 + 3.3% 762 + 1.3% G9) 723° +0.8% (133) 590 435.30 + 5.6% Estimate at J
Slide 3: Cash Flow
£m 2020 2019 ineash Profit before tax 729 723 +6 Depreciation / disposals 125 123 Capital expenditure (139) (129) Working capital / other (52) (80) Tax paid (138) (144) ESOT (27) (46) Cash flow before distribution 498 447 +51 The financial information presented excludes IFRS 16
Slide 4: Cash Flow
£m 2020 2019 ineash Profit before tax 729 723 +6 Depreciation / disposals 125 123 Capital expenditure (139) (129) -10 Working capital / other (52) (80) Tax paid (138) (144) ESOT (27) (46) Cash flow before distribution 498 447 +51 The financial information presented excludes IFRS 16
Slide 5: Cash Flow: Capital expenditure
Cash Flow Capital expenditure (139) (129) Jan 2021) Jan 2020 Jan 2019 £145m* £139m £129m Warehouse Head Office and Systems | Stores £8m £69m £141/sq. ft. £17m Space £57m Ce tic refit: P<. V1 Me £129/sq. ft. £14m ae ioe Ss Space £32m £38m £138/sq. ft. Cosmetic refits Space £24m £15m Cosmetic refits £
Slide 6: Cash Flow: Capital expenditure
Cash Flow next Capital expenditure (139) (129) -10 Jan 2021 Jan 2020 Jan 2019 £100m* £139m £129m Warehouse Head Office and Systems | Stores £8m £69m £141/sq. ft. Space £57m Cosmetic refits £10m ein £12m 35-1 a £129/sq. ft. xf] £138/sq. ft. Space £30m Space £24m Cosmetic refits Cosmetic refits £14m *
Slide 7: Slide 7
Slide 8: Cash flow with dividends and buybacks
£m Profit before tax Depreciation / disposals Capital expenditure Working capital / other Tax paid ESOT Ordinary dividends Buybacks Avg. price £55.83 Net cash flow 125 (139) (52) (138) (27) (214) (300) (16) +19 +25 +78
Slide 9: Balance Sheet
£m Fixed assets and investments Goodwill and intangibles Stock Debtors / receivables Creditors / derivatives Pension surplus Net debt Net assets The financial information presented excludes IFRS 16 552 1,368 (956) 133 (1,112) 613 526 1,340 (954) 125 (1,096) 554
Slide 10: Balance Sheet
Balance Sheet next Stock Debtors / receivables Full year 12 months to Jan 2019 Payments creditsales MBEMp{eyse) an + 7.6% Online Jan 2020 Jan 2019 receivables [aRecun £1,207m + £27m
Slide 11: Balance Sheet
£m Fixed assets and investments Goodwill and intangibles Stock Debtors / receivables Creditors / derivatives Pension surplus Net debt Net assets The financial information presented excludes IFRS 16 552 1,368 (956) 133 (1,112) 613 526 1,340 (954) 125 (1,096) 554
Slide 12: Full Year Debt and Cash Flow Jan 2019 to Jan 2020
Full Year Debt and Cash Flow Jan 2019 to Jan 2020 1,200 Jan 2019 Jan 2020 1,096 1,112 1,100 Consumer Euyitaats receivables funding 1,000 300 23 Consumer conse 900 Operational receivables receivables funding 307 27 x 85% = 23 800 << 700 £m
Slide 13: Divisional Analysis
DIVISIONAL ANALYSIS
Slide 14: Online | Sales Analysis
Online | Sales Analysis next 2020 Full Price 2,147 + 11.9% 400 Full price sales analysis Increase on last year NEXT Brand UK +£41m +4.2% LABEL +£78m + 21.9% UK total +£119mM +8.9%
Slide 15: Online | Sales Analysis
Online | Sales Analysis next 2020 Full Price 2,147 + 11.9% 400 Full price sales analysis Increase on last year UK total +£119M +8.9% Overseas +£82m + 23.3% Total +£201m = +11.9%
Slide 16: Online | Sales Analysis
Online | Sales Analysis next 2020 Full Price 2,147 + 11.9% 400 ig! Customer growth Full price Average sales customers UK total +8.9% +9.9% Overseas + 23.3% +221% Total +11.9% +12.5%
Slide 17: Online | Sales Analysis
Online | Sales Analysis next 2020 Full Price 2,147 + 11.9% 400 ig! Customer growth Full price Average sales customers UK credit +51% +2.3% UK cash +24.9% +21.4% UK total +8.9% +9.9%
Slide 18: Online | Profit Analysis
Online | Profit Analysis next 2020 Full Price 2,147 + 11.9% 400 18.6% Margin movement Bought-in gross margin - 0.2% Markdown + 0.2% Achieved gross margin + 0.0%
Slide 19: Online | Profit Analysis
Online | Profit Analysis next Achieved gross margin + 0.0% Warehouse & distribution - 0.6% Catalogues & photography + 1.2% Marketing & systems - 0.5% Central costs + 0.1% Margin movement + 0.2% Warehouse & distribution
Slide 20: Bicester Opened 26th February 2020
> Bicester Opened 26" February 2020
Slide 21: Retail | Profit Analysis
Retail | Profit Analysis next / ‘4 af 2020 Full Price 1,852 - 4.3% 164 8.9% Margin movement Bought-in gross margin + 0.3% Markdown - 0.2% Stock loss - 0.1% B |: la Achieved gross margin + 0.0%
Slide 22: Retail | Profit Analysis
Retail | Profit Analysis Achieved gross margin Store payroll Store occupancy Warehousing & distribution Central costs Margin movement 2020 1,852 164 8.9% + 0.0% - 0.1% - 1.1% - 0.4% - 0.4% - 2.0% Full Price - 4.3%
Slide 23: Retail | Mainline space
Retail | Mainline space Full price sales fromnew space + 1.1% No. of stores Sq. ft. Total sales Total net sales* 19% * After downturn and transfer of trade
Slide 24: Retail | Mainline space
Retail | Mainline space Full price sales from new space + 1.1% No. of stores Sq. ft. Total sales Total net sales* 22% * After downturn and transfer of trade
Slide 25: Retail | Mainline space
Retail | Mainline space Full price sales from new space + 1.1% No. of stores Sq. ft. Total sales Total net sales* Profit * After downturn and transfer of trade
Slide 26: Retail | Mainline space
Retail | Mainline space 2021 Full price sales from new space + 0.5% No. of stores Sq. ft. Total sales Total net sales* Profit 21% * After downturn and transfer of trade * All information in respect of Jan 21 are pre-coronavirus
Slide 27: Retail | Mainline space
Retail | Mainline space 2021 Full price sales from newspace +0.5% No. of stores Sq. ft. Total sales Total net sales* Profit * After downturn and transfer of trade * All information in respect of Jan 21 are pre-coronavirus
Slide 28: Retail | Rent negotiations
Retail | Rent negotiations 2019/20 2020/21 * Includes amortisation of unspent capital contributions or rent free periods over the lease length * All information in respect of Jan 21 are pre-coronavirus
Slide 29: Retail | Rent negotiations
Retail | Rent negotiations Including short term leases (less than 2 years) 2019/20 2020/21 Ann: a | Annualise Annualisec Lease renewals 44 Average rent reduction* - 30% Term 3.6 years Average profit 24% * Includes amortisation of unspent capital contributions or rent free periods over the lease leng
Slide 30: Divisional Analysis: NEXT Finance
DIVISIONAL ANALYSIS NEXT Finance _ = GB
Slide 31: NEXT Finance | Sales and Profit Analysis
NEXT Finance | Sales and Profit Analysis No. of average customers (000s) 2,582 2,524 + 2.3% Sales per customer £677 £669 + 1.2% Credit sales 1,748 1,689 + 3.5% UK Credit Customer Growth | Jan 2016 to Jan 2021 Annual % change in closing active customers om - 5.6% - 0.8% ral + 0.6% +1.3% +2.5% + 3.5%"
Slide 32: NEXT Finance | Credit sales
£m 2020 2019 Credit sales 1,748 1,689 + 3.5% Avg. nextpay net receivables 1,185 1140 + 4.0%
Slide 33: NEXT Finance | Sales and Profit Analysis
NEXT Finance | Sales and Profit Analysis 2020 1,748 1,185 269 Bad debt charge (ey) - 16.9% Prior year overprovision release (3) 3 Underlying bad debt charge (46) (49) Bad debt charge % of credit sales 2.7% 2.9%
Slide 34: NEXT Finance | Credit sales
£m 2020 2019 Credit sales 1,748 1,689 + 3.5% Avg. nextpay net receivables 1,185
Slide 35: NEXT Finance | Credit sales
£m 2020 2019 Credit sales 1,748 1,689 Interest income 269 250 Bad debt charge (43) (52) (43) (37) 4 + Overheads t of fundine * Cost of funding has been restated for January 2019 to reflect the new debt to equity ratio
Slide 36: NEXT Finance | Sales and Profit Analysis
NEXT Finance | Sales and Profit Analysis 2020 Avg. nextpay net receivables 1,185 1,140 Debt funding % x 85% X 85% nextpay receivables funded by debt 1,008 969 Annual interest rate % 3.6% 3.5% Cost of funding (34)* + 4.0% + 2.3% + 6.4%
Slide 37: NEXT Finance | Credit sales
£m 2020 2019 Credit sales 1,748 1,689 + 3.5% Avg. nextpay net receivables 1,185 1,140 + 4.0% Interest income 269 250 + 7.3% Bad debt charge (43) (cy) - 16.9% Overheads (43) (37) + 15.0% Cost of funding (1-)) * Cost of funding has been restated for January 2019 to reflect the new debt to equity ratio
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Slide 39: Full year full price sales Profit before tax
Full year full price sales Profit before tax Trading statement, 3" January 2020
Slide 40: Base Case Guidance | 2020/21
Base Case Guidance | 2020/21 next +3% Year to date | Weekly variance vs 2019/20 26 Jan 2 Feb 9 Feb 16 Feb 23 Feb 1 Mar 8Mar 15 to 17 Mar + 15% £734m v8 | 3% — =e +0% -5% = a? E E, -10% “sx Retail ——$—_ V a - 20% Ss — - 25% \ a - 30% \ - 35% \ ~ 40% \ - 45% \ - 50%
Slide 41: 'What if...?' full price sales scenarios
‘What if...?’ full price sales scenarios next 12 weeks 0% - 10% ———_—_—_—__}- - 20% ———_—_—_—__4 — - 30% - 40% - 50% - 60% - 70% - 80% -— - 90% - 100%
Slide 42: 'What if...?' full price sales scenarios
‘What if...?’ full price sales scenarios next 24 weeks 0% - 10% ————____}|_____ —~ E - 20% ——————_—__}—_ - 30% - 40% - 50% - 60% - 70% - 80% - 90% - 100%
Slide 43: 'What if...?' full price sales scenarios
‘What if...?’ full price sales scenarios If annual sales decline at - 25% 24 weeks ————— > Lost sales - 10% ———____4#_____ - 10% ——__—____ o,______\ = £1bn / . .) - 30% f= 25% - 40% - 40% - 45% [ - 50% ] - 60% - 60% - 70% [ pm = 75% - 80% - 90% | - 100% - 100% Equivalent to closing the business for
Slide 44: 'What if...?' full price sales scenarios
‘What if...?’ full price sales scenarios 0% - 10% —————___}___—_ ——_ 5 ~ 20% ——————___}-— - 30% - 40% - 50% - 60% - 70% - 80% - 90% - 100%
Slide 45: Stress Test | If annual sales decline at -20%
Stress Test | If annual sales decline at - 20% next - 20% SCENARIO —m™ Lostsales -£820m £1.6bn cash resources Headroom £210m
Slide 46: Stress Test | If annual sales decline at -20%
Stress Test | If annual sales decline at - 20% next - 20% SCENARIO Cost savings +£80m NEXT wages + £25m Third party +£25m
Slide 47: Stress Test | If annual sales decline at -20%
Stress Test | If annual sales decline at - 20% next - 20% SCENARIO Ini A Net cash cost - £390m
Slide 48: Stress Test | If annual sales decline at -20%
Stress Test | If annual sales decline at - 20% next - 20% SCENARIO
Slide 49: Stress Test | If annual sales decline at -20%
Stress Test | If annual sales decline at - 20% next - 20% SCENARIO ~ -CAPEX 20m 5m pW ae AS WS
Slide 50: Stress Test | If annual sales decline at -20%
Stress Test | If annual sales decline at - 20% next - 20% SCENARIO
Slide 51: Stress Test | If annual sales decline at -20%
Stress Test | If annual sales decline at - 20% next AJ VI oe WAY
Slide 52: Stress Test | If annual sales decline at -20%
Stress Test | If annual sales decline at - 20% next - 20% SCENARIO AJ uO == \ aN,
Slide 53: Stress Test | If annual sales decline at -20%
Stress Test | If annual sales decline at - 20% next Es TA vw a A/S —~“/ CSDM exven J Total cash saved £835m Si
Slide 54: Stress Test | If annual sales decline at -25%
Stress Test | If annual sales decline at - 25% next - 25% SCENARIO < f } end of May_ | of May
Slide 55: But this will pass...
But this will pass...
Slide 56: Facing unprecedented challenges
Slide 57: The NEXT Platform
ne The NEXT Platform next Platform Plus
Slide 58: The NEXT Platform | Warehousing and Distribution
The NEXT Platform | Warehousing and Distribution next Platform Plus 48 hours cust . ustomer Trial 24 hours o) Online order Warehousing > > Pick up Delivered from store to home Aa — = af = a NEXT stores Depots NEXT warehouses 34 party warehouse N Warehousing and Distribution ;
Slide 59: The NEXT Platform | Warehousing and Distribution
The NEXT Platform | Warehousing and Distribution Platform Plus Evolution » umber r Full rice | 2019/20 11 £7m Warehousing iil 2020/21© 36 £18m* Co] < 4 >a > Pah d—d u Warehousing and Distribution * Pre-coronavirus
Slide 60: The NEXT Platform | Warehousing and Distribution
The NEXT Platform | Warehousing and Distribution Evolufion Warehousing Distribution Platform Plus * Pre-coronavirus Number Full price of brands sales 2020/21© 142 £50m* direct despatch © Direct despatch 50% delivered by NEXT fleet Warehousing and Distribution J
Slide 61: The NEXT Platform: Website Development
The NEXT Platform next Website Development
Slide 62: The NEXT Platform | Website Development
The NEXT Platform | Website Development next a: ——— ) moandarn T ) te MoagerniSaltion
Slide 63: The NEXT Platform | Website Development
The NEXT Platform | Website Development next Homepage Search Checkout Delivery our a Illustrative model
Slide 64: The NEXT Platform | Website Development
The NEXT Platform | Website Development F Account Homepage Checkout Delivery Bren acenicit Illustrative model
Slide 65: The NEXT Platform | Website Development
The NEXT Platform | Website Development Homepage Search Checkout Delivery Account Management Illustrative model
Slide 66: The NEXT Platform | Website Development
The NEXT Platform | Website Development Homepage Modular development Checkout | Delivery as Account management Illustrative model
Slide 67: The NEXT Platform | Website Development
The NEXT Platform | Website Development next a ee es es es es es es es A A A A A A A A A A A v v v v v v v v v v v > 'y oo Cormmunicationlayer Illustrative model
Slide 68: TOTAL Platform
TOTAL Platform
Slide 69: TOTAL Platform
= TOTAL Platform next
Slide 70: TOTAL Platform
TOTAL Platform next
Slide 71: TOTAL Platform
TOTAL Platform next A.N. Other Brand
Slide 72: TOTAL Platform
TOTAL Platform next Design and sourcing Warehousing Distribution Website Online marketing Photography Customer service Customer credit Web look and feel International sites
Slide 73: TOTAL Platform
TOTAL Platform 63) Not outsourcing ®) Not a joint venture Long term commission contract G& Capex free CJNosystems investment (& Variable cost base Customer service Customer credit a International sites Client next
Slide 74: The NEXT Platform: Licensed Brands
The NEXT Platform next Licensed Brands
Slide 75: The NEXT Platform | Licensed Brands
The NEXT Platform | Licensed Brands next Quality Sourcing Manufacturing
Slide 76: The NEXT Platform | Licensed Brands
The NEXT Platform | Licensed Brands next . Ev diou Childrenswear Swimwear Mens Formal Home Textiles mv : Warehouae 3 ¢ baker = OASIS
Slide 77: The NEXT Platform | Licensed Brands
Annualised sales Bought in 4|margin ; Stock risk LIVING OASIS pris The NEXT Platform | Licensed Brands next circa NEXT with NEXT * Pre-coronavirus
Slide 78: The NEXT Platform | Sourcing
The NEXT Platform | Sourcing Working with 1,700 factories worldwide 9 overseas offices s HO CHI MINH CIq 1,000 overseas sourcing professionals Yeustome eal n z gP yienias Product sourcing
Slide 79: The NEXT Platform
The NEXT Platform next Customer service Customer credit International sites ee Product sourcing
Slide 80: Summary
Next Summary
Slide 81: Slide 81