Currys PLC · LSE:CURY
Currys — Corporate Update (January 2022)
26 slides from Currys's corporate update, Jan 14, 2022
Slide 1: Currys Peak Trading
Slide 2: We help everyone enjoy amazing technology
We help everyone enjoy ~ amazing technology. \ @iw
Slide 3: Key cash flow drivers
Key cash flow drivers > Steady revenue Stable gross margin Controlled capital Exceptional growth driven by and operating cost expenditure cash costs from wide range of reduction to deliver transformation complementary 4% EBIT margins to be minimised initiatives
Slide 4: First half summary
First half summary * Group Yo2 like-for-like: +15% * URS&I Electricals: +21% * International +19% Adjusted EBIT £91m (Ht 2020/21:£91m) Free cash flow £185m (12020/21:£499m) Net cash £250m (1 May 2021: £169, 31 October 2020: £269m) Total indebtedness £1.43bn Gi May 2021: £1.67bn, 31 October 2020: £1.
Slide 5: Peak summary; Like-for-Like Sales
Peak summary; Like-for-Like Sales URS&I Electricals only Nordics Greece 18% > % 1% o 11% > -3% -2% 1% 5% HI Peak YTD HI Peak YTD HI Peak YTD 19% 21% 19% . ; 18% 12% z 13% 2 16% 3% 0% H1 Peak YTD H1 Peak YTD H1 Peak YTD
Slide 6: Outlook & guidance
Outlook & guidance ca) Full year outlook * Adjusted PBT of around £155m * Capital expenditure of around £170m * Net exceptional cash costs of around £50m (previously: around £70m) * To finish the year with at least £100m of net cash * £75m annual buyback to commence
Slide 7: Medium term targets
Medium term targets > Steady growth EBIT margin Capital expenditure New cash exceptionals 4% 1.5% of sales Fminimal Annual sustainable free cash flow >£250m Growing shareholder returns ‘Annual sustoinable free cash flow is defined os operating cash flow less capital expenditure, exceptional cosh flo
Slide 8: Peak trading 2021/22
Peak trading 2021/22
Slide 9: The Technology market is still larger than before the pandemic
The Technology market is still Larger than before the pandemic > UR Electricals Market - Continuing growth drivers Yo2Y Growth Trends * Hybrid working 35% * Home entertainment 30% Faster replacement 25% * Greater usage 20% * Greater familiarity with benefits of new tech 15% 10% Larger installed base
Slide 10: The market this peak was softer and more volatile
The market this peak was softer and more volatile > UK Electricals Market growth, YoY a || com : L L : (10)% Source: Gf H12021/22 = 31Oct TNov 14.Nov 21Nov 28 Nov 05 Dec 12 Dec 19 Dec 26 Dec Pictiabesia dibs Week Commencing -------------------------- 22 - oon nn nnn nnn nnn nee nee > 10 not yet avai
Slide 11: Peak may be declining in its importance to the year
Peak may be declining in its importance to the year > Average weekly sales during Peak compared to rest of year 2.2% = 2.0) 1.8: 1.63 10x : : : | L 1.4 12 14/15 18/16 16/17 11/18 18/19 19/20 20/21 2/22 Based on Currys UK soles Possible explanations: g ® 1. Constrained availability 2. Pull forward of
Slide 12: Currys sales this peak were similarly softer and more volatile
Currys sales this peak were similarly softer and more volatile UR&I Electricals like-for-like sales, Yo2Y Nordics like-for-like sales, Yo2¥ +21% #19% 16% = | = | | +5% | ie c © oy S or Ce a a a nba C Oo S S om am oe Ca a wb s NS S SS & & » os se RO SS & mS we a Ss RS x
Slide 13: Mitigated the downside from a softer market by gaining market share
..though we mitigated the downside from a softer market by > gaining market share Currys Uk Market Share 25.9% 25.7% 25.1% i : 2020/21 2021/22 mPeak mYTD Source: GfK 3
Slide 14: Our year-to-date sales show steady growth
And our year-to-date sales show steady growth > LFL Sales YTD ( Yo2¥) 18% +17% 16% 14% 12% +11% 10% 8% +6% 6% 4% 2% 0% UR & Ireland International Group 14
Slide 15: Some categories and products performed strongly
Some categories and products performed strongly Computing and Gaming ¥ Gaming volumes +16% YoY PlayStation 5 Hbok Series H ml Oculus Quest 128GB Nintendo Switch Neon , All data for UK Appliances Range Cookers +40% YoY Dyson haircare +Top 5 Sales Bean to Cup Coffee Machines +60% Yo2Y Health Fryers +2
Slide 16: Some categories strong, others softer
Some categories strong, others softer we Vision Softer performing categories OLED screen technology Streaming and smart apps Small Screen TV Health & Beauty Microwaves +40% YoY (volume) +61% YoY (volume) entry Smart Tech Tablets Monitors Mobile . Google6 FoldandFlip Samsung A-Series 100Gb/Unlimited
Slide 17: Delivering our Omnichannel strategy, growing fast and winning online
We’re continuing to deliver our Omnichannel strategy, growing fast and winning online. Stores reopened well UK&I online sales during Peak trading International online sales during Peak trading UR&I Online Sales (£m) International Online Sales (£m) £337m 479% Yo2¥ Peak 2019/20 Peak 2020/21 Peak 2021/
Slide 18: Omnichannel: Bringing stores and online together
Omnichannel: Bringing stores and online together means > customers get the best of both worlds i) Never out of stock © Get your product right now © Help 24/7 UR&I Online-in-store sales Uk&l Order & Collect sales Peak 2021/22 ° 4.4/5 Customer rating +57% Yo2Y Vs Unassisted online et * Conversion >4x
Slide 19: Credit & Other Services: Helping everyone enjoy technology for life
Credit & Other Services: Helping everyone enjoy technology for life We have strong foundations Active credit accounts in UK Accounts 0.9m 2018/19 87% ———_ Credit balances unutilised 2019/20 = 2020/21 Peak 2021/22 » 13% £5.0 bn Credit total balances used We are making good progress... UK Credit Adopt
Slide 20: Colleague engagement up, customer satisfaction up
Colleague engagement up, customer satisfaction up Happy colleagues... Currys UR&| Employee Satisfaction Tr 78 68 +10 Nov-20 May-21 Nov-21 Source: Glint survey of over 22,000 UK&I colleagues ..create happy customers i= Total NPS 46 Peak 2020 Peak 2021 say our colleagues are ‘the main reason for a Sou
Slide 21: Operationally a great Peak
Operationally a great Peak 3 Contact Centre 21
Slide 22: Great progress on net zero targets
Great progress on net zero targets Targets AL Bs 50% reduction in scope 1, 2 and 3 emissions by 2029/30 against 2019/20. Net zero by 2040 for scope 1, 2 and 3 emissions Progress in H1: Switching to renewable tariffs in Greece Reducing fleet emissions by switching to EVs / Maxus e-Deliver 3 Energy Ma
Slide 23: We help everyone enjoy amazing technology
We help everyone enjoy ~ amazing technology. \ @iw
Slide 24: Peak Summary
| CUITYS |) Peak Summary Market: softer peak, but still Transformation continues strong progress: sustainably larger * Omnichannel: Strong online, good Peak changing: Is tech progress on online & stores together increasingly an essential year- round category? * Credit & other services growing * Coll
Slide 25: Currys Summary
Currys Summary International business with growing #1 position in all markets Tech market is sustainably larger as a result of the pandemic Proven Omnichannel proposition to best meet customer needs Wide and valued range of Services to help everyone enjoy technology Our strategy to build on these st
Slide 26: Visit our new corporate website
Visit our new corporate website www.currysplc.com