Slide 1: January 2024 One year comparison
January 2024 One year comparison v Jan 2023 Rounding differences are not adjusted
Slide 2: Income Statement
Income Statement £m Jan 2024 Jan 2023 Var Total NEXT Trading sales 5,317 5,146 + 3.3% Online + 6.0% Retail LFL + 1.8% Retail + 0.2% Full Price NEXT Trading sales + 4.0% Total sales are not presented on a statutory basis.
Slide 3: Income Statement: Subsidiary Sales & Profit
Income Statement £m Jan 2024 Jan 2023 Var Full Price Total NEXT Trading sales 5,317 5,146 + 3.3% + 4.0% Subsidiary sales & other 525 370 + 42% Total Group sales 5,842 5,516 + 5.9% Subsidiary Sales & Profit Total sales are not presented on a statutory basis.
Slide 4: Income Statement
Income Statement £m Jan 2024 Jan 2023 Var Total Group sales 5,842 5,516 + 5.9% Operating profit 996 947 Lease interest (47) (47) Operating profit incl. lease interest 949 900 + 5.5% Total sales are not presented on a statutory basis.
Slide 5: Income Statement
Income Statement £m Jan 2024 Jan 2023 Var Total Group sales 5,842 5,516 + 5.9% Operating profit 996 947 Lease interest (47) (47) External finance interest (31) (25) + 6m Interest (78) (72) Total sales are not presented on a statutory basis.
Slide 6: Income Statement
Income Statement £m Jan 2024 Jan 2023 Var Total Group sales 5,842 5,516 + 5.9% Operating profit 996 947 Interest (78) (72) + 6m Profit before tax 918 875 + 5.0% Post-amortisation profit before tax 908 870 Total sales are not presented on a statutory basis.
Slide 7: Income Statement
Income Statement £m Jan 2024 Jan 2023 Var Total Group sales 5,842 5,516 + 5.9% Operating profit 996 947 Interest (78) (72) + 6m Profit before tax 918 875 + 5.0% Tax charge (216) (159) + 36% Effective tax rate 23.6% 18.2% Total sales are not presented on a statutory basis.
Slide 8: Income Statement
Income Statement £m Jan 2024 Jan 2023 Var Total Group sales 5,842 5,516 + 5.9% Operating profit 996 947 Interest (78) (72) + 6m Profit before tax 918 875 + 5.0% Tax charge (216) (159) Profit after tax 702 716 - 2.0% EPS 578.8p 576.8p + 0.3% Final ordinary dividend 141.0p 140.0p + 0.7% Total sales ar
Slide 9: Income Statement
Income Statement £m Jan 2024 Jan 2023 Var Total Group sales 5,842 5,516 + 5.9% Operating profit 996 947 Interest (78) (72) + 6m Profit before tax 918 875 + 5.0% Tax charge (216) (159) Profit after tax 702 716 - 2.0% EPS 578.8p 576.8p + 0.3% Exceptional gain - Reiss + 109m Non-cash Total sales are no
Slide 10: Cash Flow
Cash Flow £m Jan 2024 Jan 2023 Var Profit before tax 918 875 + 44m Depreciation & software amortisation 128 110 + 18m Capital expenditure (167) (206) 39m The cash flow statement is not presented on a statutory basis.
Slide 11: Cash Flow: Capital expenditure
Cash Flow Capital expenditure Stores & other Technology £206m Warehouse £36m £167m £36m Stores – Lighting and refits + £7m £53m Photo studio + £4m £57m Subsidiaries & Head Office + £10m £117m £57m £49m £62m Jan Jan 2023 2024
Slide 12: Cash Flow: Capital expenditure E3 ~£200m
Cash Flow Capital expenditure Stores & other E3 ~£200m Technology £206m Jan 2021 – Jan 2024 Warehouse £184m £163m £167m £31m £139m £42m £29m E3 automation £43m £21m £124m Palletised warehouse extension £9m £117m £100m Hanging garments £87m £77m £71m £62m £60m £30m £26m Jan Jan Jan Jan Jan Jan 2020 2
Slide 13: Cash Flow: Capital expenditure
Cash Flow Capital expenditure Stores & other In Jan 2020 to Jan 2022 capital spend was previously categorised as technology and other Technology £206m Warehouse £167m £29m £53m £21m £9m £49m £53m Jan Jan Jan Jan Jan Jan 2020 2021 2022 2023 2024 2025(e)
Slide 14: Cash Flow: Capital expenditure
Cash Flow Capital expenditure Stores & other Technology (206) £206m Warehouse £184m £36m £163m £167m £165m(e) £155m(e) £139m £52m £47m £130m(e) £45m £53m £48m £25m £60m £60m £60m Jan Jan Jan Jan Jan Jan Jan Jan 2020 2021 2022 2023 2024 2025(e) 2026(e) 2027(e)
Slide 15: Cash Flow
Cash Flow £m Jan 2024 Jan 2023 Var Profit before tax 918 875 Depreciation & software amortisation 128 110 Capital expenditure (167) (206) Working capital / other (4) (268) 264m Online receivables (16) (92) 76m + 1% + 8% Year-end £1,200m 1,255m 1,270m balance 1,163m £1,000m 184 days 196 days 195 days
Slide 16: Cash Flow
Cash Flow £m Jan 2024 Jan 2023 Var Working capital / other (4) (268) 264m Online receivables (16) (92) 76m ESOT (19) (89) 70m Staff incentives 46 (44) 89m The cash flow statement is not presented on a statutory basis.
Slide 17: Cash Flow
Cash Flow £m Jan 2024 Jan 2023 Var Profit before tax 918 875 Depreciation & software amortisation 128 110 Capital expenditure (167) (206) Working capital / other (4) (268) Tax paid (191) (151) Surplus cash 684 359 325m Investments (161) (91) Buybacks £68.60 (177) £63.85 (228) Ordinary dividends (248
Slide 18: Balance Sheet
Balance Sheet £m Jan 2024 Jan 2023 Var Fixed assets & software 771 713 Brand acquisition 577 184 + 393m Reiss 307m FatFace 87m Brand acquisition includes Brand name, Goodwill & Investments.
Slide 19: Balance Sheet
Balance Sheet £m Jan 2024 Jan 2023 Var Fixed assets & software 771 713 Brand acquisition 577 184 Stock 800 695 + 105m Reiss & FatFace 84 - NEXT 716 695 + 3.0% Brand acquisition includes Brand name, Goodwill & Investments.
Slide 20: Balance Sheet
Balance Sheet £m Jan 2024 Jan 2023 Var Fixed assets & software 771 713 Brand acquisition 577 184 Stock 800 695 Customer receivables 1,270 1,255 + 1% Credit sales year to Jan 2024 2,027 2,035 0% Brand acquisition includes Brand name, Goodwill & Investments. Credit sales includes Online and Retail cre
Slide 21: Balance Sheet
Balance Sheet £m Jan 2024 Jan 2023 Var Fixed assets & software 771 713 Brand acquisition 577 184 Stock 800 695 Customer receivables 1,270 1,255 Other debtors 168 133 Other creditors / derivatives (1,004) (813) 191m Reiss & FatFace - 109m Staff incentives - 41m Capital accruals - 24m Brand acquisitio
Slide 22: Balance Sheet
Balance Sheet £m Jan 2024 Jan 2023 Var Fixed assets & software 771 713 Brand acquisition 577 184 Stock 800 695 Customer receivables 1,270 1,255 Other debtors 168 133 Other creditors / derivatives (1,004) (813) Pension surplus 59 157 - 98m
Slide 23: Balance Sheet
Balance Sheet £m Jan 2024 Jan 2023 Var Fixed assets & software 771 713 Brand acquisition 577 184 Stock 800 695 Customer receivables 1,270 1,255 Other debtors 168 133 Other creditors / derivatives (1,004) (813) Pension surplus 59 157 Net debt (excl. lease debt) (700) (797) 97m
Slide 24: Net Debt and Financing | Headroom
Net Debt and Financing | Headroom Jan 2023 Jan 2024 £797m £700m Jan 2025 £625m(e) Share buybacks/ investments Operational cash flow £288m(e) £780m(e) Dividends £252m(e) Capital expenditure £165m(e)
Slide 25: Net Debt and Financing
Net Debt and Financing Other Group £1.26bn subsidiaries facilities ~£460m(e) Headroom 2028 NEXT RCF £425m £800m(e) 2025 Bond Peak Oct 24 £250m £625m(e) 2026 Bond £250m Jan 2025 2028 Bond £300m Financing Net debt
Slide 26: Net Debt and Financing
Net Debt and Financing Group subsidiaries facilities repaid and £975m without 2025 Bond ~£250m(e) Headroom 2028 2025 Bond NEXT RCF £725m(e) £425m £250m Peak Oct 25 2026 Bond £625m(e) £250m Jan 2025 2028 Bond £300m Financing Net debt
Slide 27: Balance Sheet
Balance Sheet £m Jan 2024 Jan 2023 Var Fixed assets & software 771 713 Brand acquisition 577 184 393m Stock 800 695 Reiss & FatFace Customer receivables 1,270 1,255 Other debtors 168 133 Other creditors / derivatives (1,004) (813) Pension surplus 59 157 Net debt (excl. lease debt) (700) (797) Right-
Slide 28: Divisional Analysis: Retail
DIVISIONAL ANALYSIS Retail
Slide 29: Retail | Sales Analysis
Retail | Sales Analysis £m Jan 2024 Jan 2023 Var Total sales 1,865 1,865 0% Full price like-for-like sales FP sales + 0.2% by store type FP LFL sales + 1.8% + 3.7% + 2.1% + 1.3% City centre Regional Retail shopping parks centres
Slide 30: Retail | Sales Analysis
Retail | Sales Analysis £m Jan 2024 Jan 2023 Var Total sales 1,865 1,865 0% Full price sales participation by store type 2019 2023 Regional Regional shopping shopping centres centres 10% 11% Retail Retail parks 62% 28% City parks 63% 26% City centre centre
Slide 31: Retail | Sales & Profit Analysis
Retail | Sales & Profit Analysis £m Jan 2024 Jan 2023 Var Total sales 1,865 1,865 0% Operating profit 245 240 Lease interest charge (34) (36) Operating profit incl. lease interest 210 204 + 3% % to sales 11.3% 11.0%
Slide 32: Retail | Sales & Profit Analysis
Retail | Sales & Profit Analysis £m Jan 2024 Jan 2023 Var % to sales 11.3% 11.0% Bought-in gross margin + 0.4% Freight costs Surplus stock - 17% Markdown + 0.7% Clearance rates + 3.4% Achieved margin + 1.1%
Slide 33: Retail | Sales & Profit Analysis
Retail | Sales & Profit Analysis £m Jan 2024 Jan 2023 Var % to sales 11.3% 11.0% Achieved margin + 1.1% Warehouse & distribution + 0.2% Wage inflation - 0.9% Payroll - 0.5% Productivity + 0.4% Central costs & staff incentives - 0.7% Store occupancy + 0.2% Margin movement + 0.3%
Slide 34: Retail | Sales & Profit Analysis
Retail | Sales & Profit Analysis £m Jan 2024 Jan 2023 Var % to sales 11.3% 11.0% Achieved margin + 1.1% Warehouse & distribution + 0.2% Payroll - 0.5% Central costs & staff incentives - 0.7% Rates and rent + 0.9% Store occupancy + 0.2% Fully depreciated assets + 0.4% Electricity - 0.6% Margin moveme
Slide 35: Retail | Lease renewals full year 2023/24
Retail | Sales & Profit Analysis £m Jan 2024 Jan 2023 Var % to sales 11.3% 11.0% Lease renewals full year 2023/24 Number Occupancy Annualised Weighted of stores saving cash saving avg. term 56 -31% £6.7m 3.9 years
Slide 36: Retail | Forecast Jan 2025(e)
Retail | Sales & Profit Analysis £m Jan 2024 Jan 2023 Var % to sales 11.3% 11.0% Forecast Jan 2025(e) Full price sales - 2% Operating profit margin 10.5% incl. lease interest
Slide 37: Divisional Analysis: Online
DIVISIONAL ANALYSIS Online
Slide 38: Online | Sales Analysis
Online | Sales Analysis £m Jan 2024 Jan 2023 Var Full Price Total sales 3,160 3,007 + 5.1% + 6.0% Full price sales 2024 v 2023 NEXT Brand UK + 4% UK total + 3% LABEL UK + 2% Participation Overseas + 17% nextdirect.com + 8% 72% Total + 6% Aggregators + 52% 28%
Slide 39: Online | Sales Analysis
Online | Sales Analysis £m Jan 2024 Jan 2023 Var Full Price Total sales 3,160 3,007 + 5.1% + 6.0% Total sales by customer type 2024 v 2023 No. of Spend per customers customer UK credit 2.9m + 1% £565 - 2% UK cash 3.9m + 7% £210 + 1% Overseas (nextdirect.com) 1.7m 0% £310 + 9% Total 8.4m + 4% UK Onli
Slide 40: Online | Sales & Profit Analysis
Online | Sales & Profit Analysis £m Jan 2024 Jan 2023 Var Total sales 3,160 3,007 + 5.1% Operating profit incl. lease interest 506 457 + 10.8% % to sales 16.0% 15.2% + 0.8% Overseas margin + 0.5% Bought-in gross margin + 0.8% Lower freight costs + 0.3% Markdown + 1.3% Surplus stock - 14% Warehousing
Slide 41: Online | Sales & Profit Analysis
Online | Sales & Profit Analysis £m Jan 2024 Jan 2023 Var % to sales 16.0% 15.2% + 0.8% Margin by Online division NEXT Brand UK 19.9% 19.9% + 0.0% LABEL UK 12.8% 12.9% - 0.1% Overseas 13.0% 8.6% + 4.4% Overseas margin movements Warehouse & distribution + 2.9% Staff incentives - 1.3% Bought-in gross
Slide 42: Online | Forecast Jan 2025(e)
Online | Sales & Profit Analysis £m Jan 2024 Jan 2023 Var % to sales 16.0% 15.2% + 0.8% Forecast Jan 2025(e) Full price sales + 5% Operating profit margin 15.4% incl. lease interest
Slide 43: Divisional Analysis: Total Platform & Investments
DIVISIONAL ANALYSIS Total Platform & Investments
Slide 44: Total Platform Sales Analysis
Total Platform Sales Analysis £m Jan 2024 Jan 2023 Var Sales on client websites (GTV) 148.5 110.3 + 35% Commission income 30.3 21.2 + 43% Cost plus income 13.3 7.7 + 74% Recharges (at cost) 8.8 7.6 + 15% NEXT income 52.4 36.5 + 44% Jan 2023 excludes discontinued clients.
Slide 45: Total Platform Sales & Profit Analysis
Total Platform Sales & Profit Analysis £m Jan 2024 Jan 2023 Var Sales on client websites (GTV) 148.5 110.3 + 35% NEXT income 52.4 36.5 + 44% Profit from services 10.5 5.4 + 94% Margin % on clients’ online sales 6.5% 4.6% Margin % on NEXT income 20.0% 14.8% Jan 2023 excludes discontinued clients Marg
Slide 46: Total Platform Sales & Profit Analysis
Total Platform Sales & Profit Analysis £m Jan 2024 Jan 2023 Var Sales on client websites (GTV) 148.5 110.3 + 35% NEXT income 52.4 36.5 + 44% Profit from services 10.5 5.4 + 94% Equity profit 32.3 21.1 + 53% REISS 24.1 15.3 + 11% underlying PBT FatFace 6.5 - Joules (5.7) (2.8) Other clients* 7.4 8.6
Slide 47: Total Platform Sales & Profit Analysis
Total Platform Sales & Profit Analysis £m Jan 2024 Jan 2023 Var Sales on client websites (GTV) 148.5 110.3 + 35% NEXT income 52.4 36.5 + 44% Profit from services 10.5 5.4 + 94% Equity profit 32.3 21.1 + 53% Total profit 42.8 26.5 + 61% Forecast Jan 2025(e) Total profit £77m Jan 2023 excludes discont
Slide 48: Total Platform Return on Capital Analysis
Total Platform Return on Capital Analysis Cash out Cash in Return TP service profit Equity profit Total ROCE PBT is adjusted for one off non-cash adjustments required to reflect the acquisition of Reiss & FatFace Recovered PAT is included up to January 2023.
Slide 49: NEXT plc 2024/25 Full Year Outlook
NEXT plc 2024/25 Full Year Outlook
Slide 50: 2024/25(e) Full Year Guidance
2024/25(e) Full Year Guidance Full Price sales NEXT + 2.5% vs 2023/24 + 5% + 2.5% + 2.5% 0% Q1 Q2 Q3 Q4
Slide 51: 2024/25(e) Full Year Guidance
2024/25(e) Full Year Guidance Full Price sales NEXT + 2.5% vs 2023/24 2022/23 v 2021/22 + 6.9% +7.6% Q1 Q2 Q3 Q4 -0.7%
Slide 52: 2024/25(e) Full Year Guidance
2024/25(e) Full Year Guidance Retail - 2% Online + 5% NEXT Full Price sales + 2.5% Total NEXT sales + 2.5%
Slide 53: 2024/25(e) Full Year Guidance
2024/25(e) Full Year Guidance Total Sales Var £ Total NEXT sales + 140m x+ 2.5% Investments + 205m + 50% Total Group + 345m + 6.0% Profit + 42m + 4.6% *Total NEXT sales include NEXT’s full price (+£120m) plus markdown sales and TP commission (+£20m).
Slide 54: 2024/25(e) Full Year Guidance
2024/25(e) Full Year Guidance 2023/24 2024/25(e) £918m + £42m £960m + 4.6%
Slide 55: 2024/25(e) Full Year Guidance
2024/25(e) Full Year Guidance 2023/24 £918m Profit from + 2.5% FP sales + £36m TP Equity profit + £30m TP service profit + £4m
Slide 56: 2024/25(e) Full Year Guidance
2024/25(e) Full Year Guidance 2023/24 £918m Total profit from FP sales, TP & subsidiaries + £70m - £94m Net costs • Wage inflation £60m • Technology £17m • Markdown £13m • Marketing £4m
Slide 57: 2024/25(e) Full Year Guidance
2024/25(e) Full Year Guidance 2023/24 £918m Total profit from FP sales, TP & subsidiaries + £70m - £94m Net costs Cost savings + £66m • Staff incentives £24m • Bought-in margin £17m ASP LFL SS24 - 2% AW24 - 0.5%
Slide 58: 2024/25(e) Full Year Guidance
2024/25(e) Full Year Guidance 2023/24 £918m Total profit from FP sales, TP & subsidiaries + £70m - £94m Net costs Cost savings + £66m • Staff incentives £24m • Bought-in margin £17m • Electricity £12m • TP integration £6m • Warehousing £4m
Slide 59: 2024/25(e) Full Year Guidance
2024/25(e) Full Year Guidance 2023/24 £918m Total profit from FP sales, TP & subsidiaries + £70m - £94m Net costs Cost savings + £66m 2024/25(e) £960m + 4.6%
Slide 60: 2024/25(e) Full Year Guidance: Profit guidance
2024/25(e) Full Year Guidance Profit guidance FP sales + 2.5% Total Group sales + 6.0% Profit* £960m + 4.6% Pre-tax EPS* 805.2p 552.9p + 6.3% Post-tax EPS* 606.3p + 4.8% * Pre-amortisation and exceptionals.
Slide 61: The BIG Picture
The BIG Picture
Slide 62: Pre-Tax EPS history
Pre-Tax EPS history Profit contribution 200p 8.4% CAGR Retail space 100p Directory customers Product offer Jan Jan Jan Jan Jan 1997 2002 2007 2012 2017
Slide 63: Pre-Tax EPS history with dividends reinvested
Pre-Tax EPS history with dividends reinvested Reinvestment contribution Buyback contribution Profit contribution 1,000p 17.5% CAGR Cash generation 800p 600p 400p 13.7% CAGR Share buybacks 200p 8.4% CAGR Jan Jan Jan Jan Jan 1997 2002 2007 2012 2017
Slide 64: Pre-Tax EPS history with dividends reinvested
Pre-Tax EPS history with dividends reinvested Reinvestment contribution Buyback contribution Profit contribution 1,000p Underlying Structural shift profit 2.2% Pandemic 200p Cost of Living Jan Jan Jan Jan Jan Jan 1997 2002 2007 2012 2017 2024
Slide 65: Pre-Tax EPS history with dividends reinvested
Pre-Tax EPS history with dividends reinvested Reinvestment contribution Buyback contribution Profit contribution 1,800p 8.2% Cash 1,000p 200p Jan Jan Jan Jan Jan Jan 1997 2002 2007 2012 2017 2024
Slide 66: Pre-Tax EPS history with dividends reinvested
Pre-Tax EPS history with dividends reinvested Reinvestment contribution NEXT Product Buyback contribution Profit contribution Infrastructure 1,800p Cash 1,000p 200p Jan Jan Jan Jan Jan Jan 1997 2002 2007 2012 2017 2024
Slide 67: NEXT product
NEXT product Newness Breadth Quality
Slide 68: NEXT Product
NEXT Product Newness Breadth Quality Crochet Stripes Embroidery Trend Wide leg
Slide 69: NEXT Product
NEXT Product Newness Breadth Quality PRINTS SEQUINS BOXY PLAINS
Slide 70: NEXT Product
NEXT Product Newness Breadth Quality SLOGAN LICENCE PRINTS SEQUINS BOXY PLAINS SPORTY TIE DYE CLEAN GRAFFITI BACK PRINT STRIPES EMBROIDERY CLASSIC SPARKLE & EFFECT LINES COLOURS FOIL
Slide 71: NEXT Product
NEXT Product Newness Breadth Quality 60’S GRAPHICS SEQUINS GRAFFITI SPARKLE & FOIL EMBROIDERY TULLE LAYERS CELESTIAL LICENCE CLEAN LINES STRIPES CLASSIC BOXY PLAINS COLOURS SLOGAN TIE DYE SPORTY EFFECT PRINTS BACK PRINT
Slide 72: NEXT Product
NEXT Product Newness Breadth Quality £48 60’S GRAPHICS SEQUINS GRAFFITI SPARKLE & FOIL EMBROIDERY TULLE LAYERS CELESTIAL LICENCE £4 CLEAN LINES STRIPES CLASSIC BOXY PLAINS COLOURS SLOGAN TIE DYE SPORTY EFFECT PRINTS BACK PRINT
Slide 73: NEXT Product
NEXT Product Newness Breadth Quality
Slide 74: NEXT Product
NEXT Product
Slide 75: Overseas
Overseas Total sales £800m £600m £400m + 71% £200m 2019 2023 Total sales exclude Russia.
Slide 76: Overseas
Overseas Total sales £800m £600m £400m Europe + 91% & Middle East £200m 2019 2023 Total sales exclude Russia.
Slide 77: Overseas
Overseas Total sales £800m £600m £400m Europe + 91% & Middle East £200m Speed, reliability and cost 2019 2023 Total sales exclude Russia.
Slide 78: Overseas
Overseas Total sales Middle East % of parcels by delivery time* £800m 2023 service 2024 service Next day Ireland UK 28% £600m 2 days 9%Germany 27% 3 days 29% 20% £400m 14% Europe + 91% 4 days 30% & Middle Dubai 7% Opened East 5 days 18% Jan 2024 £200m 6 days 14% 4% Speed, reliability and cost 2019 2
Slide 79: Overseas
Overseas Total sales £800m £600m £400m Europe + 91% & Middle East £200m Digital Marketing 2019 2023 Total sales exclude Russia.
Slide 80: Overseas
Overseas Total sales £800m £600m £400m £200m - 12% RoW Rest of the World 2019 2023 Total sales exclude Russia.
Slide 81: Overseas
Overseas Total sales £800m Direct Partnership £600m Worse economics Local infrastructure Worse service Local service £400m Less well known Customer base £200m - 12% RoW Rest of the World 2019 2023 Total sales exclude Russia.
Slide 82: Overseas: NEXT Product, New brands
Overseas NEXT Product Wholly owned New brands brands & licensing Infrastructure TP / Investments
Slide 83: Overseas: NEXT Product, New brands
Overseas NEXT Product Wholly owned Wholly owned New brands brands & licensing Infrastructure Owned license TP / Investments 3rd party license
Slide 84: Overseas: NEXT Product, Cash
Overseas NEXT Product Cash New brands Infrastructure Tech TP / Investments
Slide 85: Tech: Costs
Tech Costs Total spend including capex & opex 1,900 Avg. headcount £216m 1,000 £104m Jan 2021 Jan 2022 Jan 2023 Jan 2024 Jan 2025(e)
Slide 86: Tech: Costs
Tech Costs Total spend including capex & opex £216m + £112m X £104m Jan 2021 Jan 2022 Jan 2023 Jan 2024 Jan 2025(e)
Slide 87: Tech: Tech cost increase
Tech Tech cost increase 2024 v 2020 + £112m X £28m Cloud / data / security £30m Modernisation Jan 2025(e)
Slide 88: Tech: Modernisation
Tech Tech cost increase 2024 v 2020 + £112m Modernisation Re-writing legacy code X • More reliable • More scalable • Easier to develop £30m Jan 2025(e)
Slide 89: Tech: Modernisation progress
Tech % complete £m spend(e) E-Commerce 96% 24 Payroll & HR 100% 6 Product systems 58% 12 Warehousing 24% 16 Contact centres 100% 4 Data & analytics 0% 3 Modernisation Finance 5% 40 £30m 55% 106 Weighted average 44% Jan 2025(e) 2020 2021 2022 2023 2024 2025 2026
Slide 90: Tech: Driving efficiencies
Tech Costs Total spend including capex & opex Modernisation spend £216m £210m Driving efficiencies £190m • Modernisation gains • More experience • Yin-Yang development £30m £25m £5m Jan 2025(e) Jan 2026(e) Jan 2027(e)
Slide 91: Tech: Driving efficiencies
Tech Driving efficiencies < 12 months service • Modernisation gains 33% 31% • More experience • Yin-Yang development 23% 21% 18% Tech teams Jan 20 Jan 21 Jan 22 Jan 23 Jan 24
Slide 92: Tech: Driving efficiencies, Returns project
Tech Driving efficiencies Returns project • Modernisation gains • More experience • Yin-Yang development
Slide 93: Tech: Driving efficiencies, Returns project
Tech Driving efficiencies Returns project • Modernisation gains • More experience • Yin-Yang development
Slide 94: Yin-Yang development: The old way
Tech Yin-Yang development The old way
Slide 95: Yin-Yang Development: The new way
Tech Yin-Yang Development The new way
Slide 96: In conclusion
Tech In conclusion Overseas NEXT Product New brands Cash TP / Investments Infrastructure Traditional capabilities New opportunities