Slide 1: Disclaimer
DISCLAIMER This document contains forward-looking statements with respect to the operations, performance and financial condition of WH Smith PLC. By their nature, these statements are subject to risks, assumptions and uncertainties that could cause actual results to differ materially from those expr
Slide 2: The Global Travel Retailer: Interim Results
CV THE GLOBAL TRAVEL RETAILER INTERIM RESULTS - 16 APRIL 2025
Slide 3: Agenda
AGENDA • Key Highlights • Financial Review • Strategic Progress • Summary
Slide 4: Pure Play Global Travel Retailer
PURE PLAY GLOBAL TRAVEL RETAILER INCREASE IN OPTIMAL USE OF SPACE GROWTH GROWTH OF SPEND PER SPACE IN EACH IN NEW AND PASSENGER PASSENGER STORE EXISTING NUMBERS MARKETS Strong revenue Substantial cash Efficient capital Profit growth growth generation allocation policy
Slide 5: Strong Platform Created Over Past Decade
STRONG PLATFORM CREATED OVER PAST DECADE £M TRAVELTRADING REVENUE TRAVELTRADINGPROFIT 1,466 189 Travel Travel CAGR: +12% CAGR: +10% 117 817 80 521 FY15 FY19 FY24 FY15 FY19 FY24
Slide 6: Significant Growth Opportunities in Travel Retail
SIGNIFICANT GROWTH OPPORTUNITIES IN TRAVEL RETAIL Passengers Billions GLOBAL PASSENGER FORECAST 2016 - 2051 KEY GROWTH DRIVERS Passengers ✓ Air passengers forecast to grow at 2.5x to 2050 Billions 93 driven by population and economic growth 85 X2.5+ 77 ✓ Significant investment into airport infrastru
Slide 7: First Half Highlights
FIRST HALF HIGHLIGHTS Announced sale Strong 30 stores opened2 £50m share of High Street like-for-like during H1 buyback business revenue growth ongoing +90 stores Travel trading Investing £110m New Store Interim dividend profit1 of £56m capex in pipeline of over of 11.3p up 12% the year 90 stores We
Slide 8: Financial Review
FINANCIAL REVIEW Max Izzard Group CFO For every journey
Slide 9: H1 2025 Financial Highlights
H1 2025 FINANCIAL HIGHLIGHTS1 TRAVEL GROUP GROUP GROUP REVENUE REVENUE HEADLINE PBT2 EPS2 £712m £951m £45m 23.8p +6%1 +3%1 (2)%1 (2)%1 TRAVEL TRAVEL GROUP INTERIM TRADING PROFIT3 PROFIT MARGIN LEVERAGE DIVIDEND £56m 7.9% 1.7x 11.3p +12%1 +40BPS1 0.1 Lower1 +3%1 1 Vs H1 FY24 2 Headline – pre IFRS 16,
Slide 10: Revenue Summary
REVENUE SUMMARY Total at 6 months to 6 months to Total vs constant LFL¹ vs Feb 2025 Feb 2024 2024 currency vs 2024 £m £m 2024 Travel UK 384 360 7% 7% 7% North America 194 189 3% 5% 3% Rest of the World 134 121 11% 15% 9% Total Travel 712 670 6% 8% 6% High Street2 239 256 (7)% (7)% (3)% Group 951 926
Slide 11: Travel Revenue Analysis
TRAVEL REVENUE ANALYSIS £M REVENUE1 £42m +6% +2% xxx 7 +6% 14 4 712 39 670 H1 2024 LFL Space Growth FX Impact Additional trading day H1 2025 1 As reported
Slide 12: Travel Revenue by Segment and Channel
TRAVEL REVENUE BY SEGMENT AND CHANNEL Total at constant Total vs 2024 LFL¹ vs 2024 currency vs 2024 Air 8% 8% 9% Hospitals 9% 9% 4% Rail 5% 5% 4% Travel UK 7% 7% 7% Air 6% 9% 4% Resorts (9)% (6)% (3)% North America 3% 5% 3% Rest of the World 11% 15% 9% Total Travel 6% 8% 6% 1 Constant currency
Slide 13: Income Statement
INCOME STATEMENT 1 6 months to 6 months to Feb 2025 Feb 2024 £m £m Travel UK 2 40 37 North America 2 15 14 Rest of the World 2 1 (1) Total Travel 2 56 50 High Street 2 15 22 Headline Group profit from trading operations 2 71 72 Unallocated central costs (14) (13) Headline Group operating profit 3 57
Slide 14: Non-Underlying Summary
NON-UNDERLYING SUMMARY 1 6 months to 6 months to 12 months to Feb 2025 Feb 2024 Aug 2024 £m £m £m IT transformation programme 5 1 4 Operational efficiency programme 6 - - Impairment of non-current assets and onerous 3 1 23 contracts – Travel Other 2 3 10 Sub total 16 5 37 Impairment of non-current a
Slide 15: Group Free Cash Flow
GROUP FREE CASH FLOW 1 6 months to 6 months to Feb 2025 Feb 2024 £m £m Group operating profit 2 57 59 Depreciation, amortisation and impairment 3 32 29 Non cash items 5 6 Operating cash flow 4 94 94 Capital expenditure 5 (50) (65) Working capital 3 (87) (68) Net tax paid (17) (9) Net interest paid (
Slide 16: Net Debt and Leverage Profile
NET DEBT AND LEVERAGE PROFILE £M HEADLINE NET DEBT1 (PRE-IFRS 16) -83 change -23 -29 75 -454 -25 -12 -69 -371 Opening Free cash flow Non-underlying Dividends paid Net purchase of Receipt of Other3 Closing net net debt items own shares for pension surplus debt H1 FY25 Leverage share buy back Leverage
Slide 17: Successful Refinance Strengthens Balance Sheet
SUCCESSFUL REFINANCE STRENGTHENS BALANCE SHEET £M DEBT STACK 327 320 • £320m of new Bank and Private Placement debt 200 USPP notes • Extension of debt maturity profile Convertible Bond1 • Diversification of capital structure with debt funding from new USPP investors 120 Term Loan2 • Delayed draw pro
Slide 18: Disciplined Approach to Capital Allocation
DISCIPLINED APPROACH TO CAPITAL ALLOCATION Shareholder Capex Dividend Acquisitions Returns Investing Undertaking value Surplus cash returns Progressive in growth with creating to shareholders via dividend policy attractive returns opportunities buybacks £50m announced Capex FY25 Interim dividend Sub
Slide 19: Strategic Progress
STRATEGIC PROGRESS Carl Cowling Group CEO For every journey
Slide 20: Travel UK
V TRAVEL UK
Slide 21: Continued Strong Growth in Travel UK
CONTINUED STRONG GROWTH IN TRAVEL UK Strong growth across all channels in our largest division Strong LFL revenue growth up 7% Trading profit up 8% to £40m Focus on customer conversion, increasing spend per passenger and ATV growth Continue to invest: on track to open 10 to 15 stores per annum over
Slide 22: Strong Performance in UK Air
STRONG PERFORMANCE IN UK AIR LFL revenue growth of 9% in UK Air Rollout of one-stop-shop format delivering strong results and driving an improvement in profitability Continue to innovate by broadening categories and enhancing ranges; Smith’s Family Kitchen food range proving popular with customers C
Slide 23: Continued Growth in Hospitals
CONTINUED GROWTH IN HOSPITALS Good performance in Hospitals LFL revenue growth of 4% Tailored retail proposition, including increased food, health and beauty and tech accessories driving increased footfall 2 hospital stores opened in H1, and our second Smith’s Family Kitchen café Expect to open a fu
Slide 24: Further Growth in Rail
FURTHER GROWTH IN RAIL Good performance in Rail LFL revenue growth of 4% Continue to improve customer offer by investing in new store formats and improved ranges Recently refitted stores at Charing Cross, Glasgow Queen Street, Kings Cross and York stations More dedicated space for food, health and b
Slide 25: North America
V NORTH AMERICA
Slide 26: The World's Largest Travel Retail Market
THE WORLD’S LARGEST TRAVEL RETAIL MARKET The most exciting growth opportunity for the Group Total revenue up 5%1 ; LFL revenue up 3% Profit up 7% to £15m Continue to invest and re-engineer our Travel Essentials airport business; driving higher growth and profitability Focus on growing our market sha
Slide 27: Strong Growth in Travel Essentials Format
STRONG GROWTH IN TRAVEL ESSENTIALS FORMAT C.80% of passenger traffic in the US is domestic Focus on improving quality and efficiency of our space Travel Essentials continues to perform strongly with LFL revenue up 8% Over 90% of our new store pipeline is in Travel Essentials Forensic analysis of spa
Slide 28: Focus on Increasing Spend per Passenger
FOCUS ON INCREASING SPEND PER PASSENGER Strong spend per passenger growth in the first half, up 5% Food and drink categories central to development in customer offer Developing new Health and Beauty offer in line with category development in the UK Confident we will continue to grow LFL revenue in T
Slide 29: Significant New Airport Wins
SIGNIFICANT NEW AIRPORT WINS 5STORES 8STORES 7STORES MAJOR WIN WONAT WONAT WONAT AT EAST COAST PORTLAND DALLASFORT ALBUQUERQUE INTERNATIONAL AIRPORT WORTH AIRPORT AIRPORT Trading from over 340 stores; over 70 stores won and yet to open
Slide 30: Significant Opportunities in North America
Number of stores 0 20 40 60 80 100 140 120 Atlanta (ATL) Source: AXN Factbook 2023 Dallas-Fort Worth (DFW) Denver (DEN) Los Angeles (LAX) Chicago (ORD) New York (JFK) WHSmith Orlando (MCO) Las Vegas (LAS) Charlotte (CLT) Miami (MIA) Other news/specialty stores Seattle (SEA) Newark (EWR) San Francisc
Slide 31: Rest of the World
V REST OF THE WORLD
Slide 32: Investing to Grow Scale Internationally
INVESTING TO GROW SCALE INTERNATIONALLY Significant opportunities to scale travel retail formats globally LFL revenue up 9% Delivered profit of £1m Opened 17 stores in the period, including new stores in Australia, Spain, UAE and 3 InMotion stores in Denmark Significant new space opportunities globa
Slide 33: Strategic Focus on Travel Essentials
STRATEGIC FOCUS ON TRAVEL ESSENTIALS Now operate over 60 stores across Australia Apply retail disciplines from the UK to improve customer offer and experience Won Food and Beverage tender in Alfred Hospital, Melbourne Important learnings for the Group as we look to grow our food credentials across t
Slide 34: Summary
V SUMMARY
Slide 35: WHSmith: The Pure Play Global Travel Retailer
WHSMITH: THE PURE PLAY GLOBAL TRAVEL RETAILER Travel Retail powered by passenger growth globally Highly scalable business in 32 countries; exciting market share opportunities Retail innovation driving spend per passenger Highly attractive financial profile
Slide 36: The Global Travel Retailer: Interim Results
CV THE GLOBAL TRAVEL RETAILER INTERIM RESULTS - 16 APRIL 2025
Slide 37: Appendix
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Slide 38: IFRS 16 – Impact on Balance Sheet
IFRS 16 – IMPACT ON BALANCE SHEET Headline Pre-IFRS 16 IFRS 16 IFRS 16 28 Feb 2025 Adjustment 28 Feb 2025 £m Goodwill and other intangible assets 490 (2) 488 Property, plant and equipment 313 8 321 Right-of-use assets - 467 467 Investments in joint ventures 2 - 2 805 473 1,278 Inventories 225 - 225
Slide 39: IFRS 16 – Impact on Income Statement
IFRS 16 – IMPACT ON INCOME STATEMENT Headline Pre-IFRS 16 IFRS 16 IFRS 16 28 Feb 2025 Adjustment 28 Feb 2025 £m Revenue 951 - 951 Travel UK trading profit1 40 - 40 North America trading profit1 15 3 18 Rest of the World trading profit1 1 4 5 Total Travel trading profit1 56 7 63 High Street trading p
Slide 40: IFRS 16 – Impact on Cash Flow Statement
IFRS 16 – IMPACT ON CASH FLOW STATEMENT Headline Pre-IFRS 16 IFRS 16 IFRS 16 28 Feb 2025 Adjustment 28 Feb 2025 £m Net cash inflows from operating activities 26 60 86 Net cash outflows from investing activities (48) - (48) Net cash inflows/(outflows) from financing activities 5 (60) (55) Net decreas