Slide 1: January 2023: 3 year comparison v 2020
January 2023 3 year comparison v 2020
Slide 2: Income Statement
Income Statement £m Jan 2023 Jan 2020 Var Total sales 5,415 4,362 + 24% Total sales excluding Total Platform + 20.8% Full price sales + 20.5% Total sales are not presented on a statutory basis
Slide 3: Income Statement
Income Statement £m Jan 2023 Jan 2020 Var Total sales 5,415 4,362 + 24% Full price sales Online + 41.5% Retail - 0.4% Finance + 2.1% + 20.5% FP CAGR inc. Finance + 6.4% Total sales are not presented on a statutory basis
Slide 4: Income Statement
Income Statement £m Jan 2023 Jan 2020 Var Total sales 5,415 4,362 + 24% Operating profit 943 854 Lease interest (47) (62) Operating profit after lease interest 895 792 + 13% Operating profit % 16.5% 18.2% - 1.6% Warehouse & distribution - 1.4% Technology costs - 1.0% Lower retail occupancy costs + 0
Slide 5: Income Statement
Income Statement £m Jan 2023 Jan 2020 Var Total sales 5,415 4,362 + 24% Operating profit after lease interest 895 792 + 13% Finance interest (25) (43) Interest paid (30) (43) Preference dividend and loan interest 5 - Total sales are not presented on a statutory basis
Slide 6: Income Statement
Income Statement £m Jan 2023 Jan 2020 Var Total sales 5,415 4,362 + 24% Operating profit after lease interest 895 792 + 13% Finance interest (25) (43) Profit before tax 870 749 + 16% Tax charge (159) (138) Effective tax rate 18.2% 18.5% Effective tax rate (exc. equity profit) 18.5% Total sales are n
Slide 7: Income Statement
Income Statement £m Jan 2023 Jan 2020 Var Total sales 5,415 4,362 + 24% Operating profit after lease interest 895 792 + 13% Finance interest (25) (43) Profit before tax 870 749 + 16% Tax charge (159) (138) Profit after tax 712 610 EPS 573.4p 472.4p + 21.4% Total ordinary dividend 206.0p 36% of profi
Slide 8: Income Statement
Income Statement £m Jan 2023 3 year var 1 year var Total sales 5,415 + 24% + 11% Profit before tax 870 + 16% + 6% EPS 573.4p + 21.4% + 8.0% Total sales are not presented on a statutory basis
Slide 9: Cash Flow
Cash Flow £m Jan 2023 Jan 2020 Var Profit before tax 870 749 + 121m Depreciation and impairment 110 125 Capital expenditure (206) (139) - 67m Investments (91) - - 91m Customer receivables (92) (27) - 65m Working capital / other (172) (72) - 100m Tax paid (151) (138) Cash flow before distribution 268
Slide 10: Cash Flow: Capital expenditure
Cash Flow £m Jan 2023 Jan 2020 Var Capital expenditure (206) (139) 67m Stores & other £206m Technology £36m Warehouse Hardware £15m £139m Software £38m £53m Modernisation £20m £43m TP & warehouse £10m £117m £9m Central inc. security £5m £87m Small developments £3m of which £77m Elmsall 3 2023 2020
Slide 11: Cash Flow: 3 Year View
Cash Flow | 3 Year View £m Jan 2023 Jan 2020 Var Capital expenditure (206) (139) 67m Stores & other Average ~ £147m £206m Technology £36m £170m Warehouse £53m £40m £135m £135m £25m £25m £55m £50m £50m £117m £75m £60m £60m 2023 2024(e) 2025(e) 2026(e)
Slide 12: Cash Flow
Cash Flow £m Jan 2023 Jan 2020 Var Profit before tax 870 749 Depreciation and impairment 110 125 Capital expenditure (206) (139) Investments (91) - Customer receivables Additional 26% REISS (92) (45) (27) Working capital /74% other Joules (172) (36) Equity (72) £15.7m Tax paid 44% JoJo Maman Bébé (1
Slide 13: Cash Flow
Cash Flow £m Jan 2023 Jan 2020 Var Profit before tax 870 749 Depreciation and impairment 110 125 Capital expenditure (206) (139) Investments (91) - Customer receivables (92) (27) Working capital / other (172) (72) - 100m Tax paid (151) (138) ESOT - 62m Cash flow before distribution Head Office268 bo
Slide 14: Balance Sheet
Balance Sheet £m Jan 2023 Jan 2020 Var Fixed and intangible assets 726 579 Goodwill and investments 171 49 + 122m Stock 695 552 Equity partners Debtors / other receivables 1,387 1,315 Other creditors / derivatives (813) (676) Pension surplus 157 133 Right-of-use assets 662 853 Lease debt (1,023) (1,
Slide 15: Balance Sheet
Balance Sheet £m Jan 2023 Jan 2020 Var Fixed and intangible assets 726 579 Goodwill and investments 171 49 Stock 695 552 + 26% Debtors Six monthly/ stock otherbalance receivables 1,387 FP1,315 sales + 20.5% + 1% Other creditors / derivatives £800m (813) v Feb (676) + 5.6% 2022 Pension surplus £700m
Slide 16: Balance Sheet
Balance Sheet £m Jan 2023 Jan 2020 Var Fixed and intangible assets 726 579 Goodwill and investments 171 49 Stock 695 552 Debtors / other receivables 1,387 1,315 + 72m Other creditors / derivatives (813) (676) Customer receivables + 21m Pension surplus 157 133 Total Platform clients + 18m Right-of-us
Slide 17: Balance Sheet: Customer receivables
Balance Sheet £m Var Customer receivables - monthly closing balance £1,300m 3 year growth + 21m £1,100m 24 25 23 12 13 22 17 18 19 20 21 16 £900m 11 14 15 10 7 8 9 1 5 6 4 2 3 £700m COVID Pandemic Jan Jan Jan Jan Jan 2019 2020 2021 2022 2023
Slide 18: Balance Sheet: Customer receivables
Balance Sheet £m Var Customer receivables - monthly closing balance £1,300m + 8% £1,100m 25 13 £900m 1 £700m COVID Pandemic Jan Jan Jan Jan Jan 2019 2020 2021 2022 2023
Slide 19: Balance Sheet: Average pay off time
Balance Sheet £m Var Customer receivables - monthly closing balance Average pay off time 7.5 months 7.4 months 25 13 6.4 months 1 6.4 months 6.0 months 5.0 months COVID Pandemic Jan Jan Jan Jan Jan 2019 2020 2021 2022 2023
Slide 20: Balance Sheet: Bad Debt
Balance Sheet £m Jan 2023 Jan 2020 Var Debtors / other receivables 1,387 1,315 + 72m Bad Debt Closing provision 10.0% for future defaults 8.4% 7.0% Observed default rate 4.5% 4.3% 3.7% 3.9% 3.4% 3.3% 3.3% 3.2% 3.3% Jan Jan Jan Jan Jan Jan Jan Jan Jan 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 21: Balance Sheet: Bad Debt
Balance Sheet £m Jan 2023 Jan 2020 Var Debtors / other receivables 1,387 1,315 + 72m Bad Debt Closing provision for future defaults 33.0m 32.8m Observed default rate UK total employment Q1 2020 to Q4 2022 4.3% 3.9% 3.2% 3.3% Jan Jan Jan Jan 2020 2021 2022 2023
Slide 22: Balance Sheet
Balance Sheet £m Jan 2023 Jan 2020 Var Fixed and intangible assets 726 579 Goodwill and investments 171 49 Stock 695 552 Debtors / other receivables 1,387 1,315 Other creditors / derivatives (813) (676) Pension surplus 157 133 Right-of-use assets 662 853 Lease debt (1,023) (1,251) Net debt (excludin
Slide 23: Net Debt and Financing
Net Debt and Financing NET DEBT £1,112m Jan 2020 NET DEBT NET DEBT £797m £800m Jan 2023 Share buybacks/ Investments Jan 2024(e) £220m Operational cash flow Dividends Online £727m receivables £250m £90m Capital expenditure £170m
Slide 24: Net Debt and Financing
Net Debt and Financing Jan 2024(e) £1.34bn Jan 2024(e) 60% £800m Net debt Customer receivables
Slide 25: Divisional Analysis: Retail
Exeter DIVISIONAL ANALYSIS Retail
Slide 26: Retail: Sales & Profit Analysis
Retail | Sales & Profit Analysis £m Jan 2023 Jan 2020 Var Total sales 1,865 1,852 + 1% FP sales - 0.4% Full price sales by store type LFL full price + 2.6% Like-for-like full price sales Sales Participation City centres Regional shopping Retail parks Year ending Jan 2023 centres +23% 2023 v 2022* Ci
Slide 27: Retail: Sales & Profit Analysis
Retail | Sales & Profit Analysis £m Jan 2023 Jan 2020 Var Total sales 1,865 1,852 + 1% Operating profit 240 234 Lease interest charge (36) (57) Operating profit inc. lease interest 204 177 + 16%
Slide 28: Retail: Sales & Profit Analysis
Retail | Sales & Profit Analysis £m Jan 2023 Jan 2020 Var Total sales 1,865 1,852 + 1% Operating profit 204 177 + 16% inc. lease interest % to sales 11.0% 9.5% Achieved margin Bought-in gross margin - 0.5% - 1.0% Markdown - 0.5% Warehouse, distribution & technology - 1.4% Branch payroll - 0.2% Store
Slide 29: Retail: Store occupancy
Retail | Store occupancy 2022/23 Rent reductions Weighted No. of Occupancy Annualised avg. term stores saving saving (years) 62 5.0 - 30% £11.1m TOC deals 25 5.5 Rent only deals 37 3.9 Rent only deals include fixed and turnover rent deals. Total occupancy costs (TOC deals) are charged as a % of sale
Slide 30: Retail: Store occupancy
Retail | Store occupancy Retail sales and costs indexation =100 Annualised rent, rates & service charge 85 77 Sales COVID Pandemic Jan Jan Jan Jan Jan Jan Jan Jan Jan 2016 2017 2018 2019 2020 2021 2022 2023 2024(e) Annualised sales at the end of each year indexed to 100 at 31st January 2016
Slide 31: Divisional Analysis: Online
DIVISIONAL ANALYSIS Online
Slide 32: Online: Sales Analysis
Online | Sales Analysis £m Jan 2023 Jan 2020 Var Full price Total sales 3,007 2,147 + 40% + 42% Full price sales history 3 YR CAGR + 12.3% 3 YR CAGR + 13.1% History Division Customer type £1.3bn £1.5bn £1.7bn £1.9bn £2.1bn £2.8bn £2.7bn Jan Jan Jan Jan Jan Jan Jan 2017 2018 2019 2020 2021 2022 2023
Slide 33: Online: Sales Analysis
Online | Sales Analysis £m Jan 2023 Jan 2020 Var Full price Total sales 3,007 2,147 + 40% + 42% Full price sales 2023 vs 2020 LABEL sales growth contribution By division Existing NEXT Brand UK + 19% brands New History LABEL UK + 100% 44% 56% brands UK total + 44% Division Overseas + 35% Customer typ
Slide 34: Online: Sales Analysis
Online | Sales Analysis £m Jan 2023 Jan 2020 Var Full price Total sales 3,007 2,147 + 40% + 42% Full price sales 2023 vs 2020 By division Overseas sales participation NEXT Brand UK + 19% Aggregators History LABEL UK + 100% 21% UK total + 44% Division Overseas + 35% NEXTdirect.com Customer type 79% N
Slide 35: Online: Sales Analysis
Online | Sales Analysis £m Jan 2023 Jan 2020 Var Full price Total sales 3,007 2,147 + 40% + 42% Full price sales 2023 vs 2020 By customer division type Avg. no of customers Avg. annual spend UK credit + 22% 2.8m + 10% £487 + 11% History UK cash + 118% 3.6m + 78% £198 + 23% Overseas (exc. Russia & Uk
Slide 36: Online: Profit Analysis
Online | Profit Analysis £m Jan 2023 Jan 2020 Var Total sales 3,007 2,147 Operating profit* 457 413 % to sales 15.2% 19.2% - 4.0% Bought-in gross margin - 2.8% Higher LABEL & overseas mix - 2.5% Markdown + 0.2% Unplanned freight costs - 0.3% Achieved gross margin - 2.6% * Including lease interest co
Slide 37: Online: Profit Analysis
Online | Profit Analysis £m Jan 2023 Jan 2020 Var % to sales 15.2% 19.2% - 4.0% Inflationary costs - 1.8% Achieved gross margin - 2.6% Higher selling prices, + 1.2% fewer units Warehouse & distribution - 1.5% E3, depreciation & - 0.6% other occupancy costs Technology & other - 1.1% International cos
Slide 38: Online: Profit Analysis
Online | Profit Analysis £m Jan 2023 Jan 2020 Var % to sales 15.2% 19.2% - 4.0% Margin by Online division NEXT Brand UK 19.9% 22.0% - 2.1% LABEL UK 12.9% 15.4% - 2.5% Overseas 8.6% 16.5% - 7.9% Duty & import VAT - 2.4% Delivery costs - 1.5% Aggregator participation - 1.8% Technology & marketing - 1.
Slide 39: Online: Profit Analysis
Online | Profit Analysis £m Jan 2024(e) Jan 2023 Var % to sales 14.3% 15.2% Margin by Online division NEXT Brand UK 17.5% 19.9% - 2.4% LABEL UK 11.5% 12.9% - 1.4% Overseas 12.0% 8.6% + 3.4%
Slide 40: Divisional Analysis: Total Platform
DIVISIONAL ANALYSIS Total Platform
Slide 41: Total Platform: 2023 Sales & Profit Analysis
Total Platform | 2023 Sales & Profit Analysis Discontinued Continued £m Jan 2023 operations operations Sales on the TP website 129 Service income (cost plus services for retail stores) 15 Total sales (GTV) inc. cost plus activities 144 (19) 126 Trading profit 5.1 (0.3) 5.4 4.3% GTV = gross transacti
Slide 42: Total Platform: 2023 Sales & Profit Analysis
Total Platform | 2023 Sales & Profit Analysis £m Jan 2024(e) Jan 2023 Total sales (GTV) inc. cost plus activities 177 126 Trading profit 9.2 5.2% 5.4 4.3% Equity profit 13.3 16.8 Underlying equity profit 19.0 16.3 Deferred tax asset (historical) 1.3 3.5 Joules (7.0) (3.0) Total TP profit 22.5 22.2 G
Slide 43: NEXT plc 2023/24 Guidance
NEXT plc 2023/24 Guidance
Slide 44: 2023/24 Full Price Sales Guidance
2023/24 Full Price Sales Guidance Average selling price inflation + 8% January 2023(e) + 6% + 7% March 2023(e) + 3% - 0.2% v 2022/23 (1 year) - 3.0% H1 H2
Slide 45: 2023/24 Full Price Sales Guidance
2023/24 Full Price Sales Guidance + 18.7% + 18.7% v 2022/23 v 2019/20 (1 year) (4 years) - 0.2% - 3.0% H1 H2
Slide 46: 2023/24 Full Price Sales Guidance: Full Year
2023/24 Full Price Sales Guidance Full Year - 1.5% - 0.2% v 2022/23 (1 year) Events, jubilee, - 2% weddings, sunshine - 4% Q1 Q2 H2
Slide 47: 2023/24 Full Price Sales Guidance v 2022/23
2023/24 Full Price Sales Guidance v 2022/23 Full Year Retail - 4% Online - 1% Finance + 8% Brand - 1.5%
Slide 48: 2023/24(e) Profit Guidance
2023 /24(e) Profit Guidance FP sales FP margin before movement fixed overheads Retail 2022/23 - £70m 55% - £39m £870m Online - £22m 40% - £9m Overseas margin £14m Finance £2m Group interest £5m
Slide 49: 2023/24(e) Profit Guidance
2023 /24(e) Profit Guidance FP sales movement Retail 2022/23 - £70m - £39m £870m Online - £22m £5m + £22m Finance £7m Wage inflation – NEXT £52m Cost increases Wage inflation – 3rd Party £15m £116m Energy £25m Technology £19m Cost savings 2023/24(e) ASP increase £25m £68m £795m - 8.7% Occupancy £21m
Slide 50: 2023/24(e) Profit Guidance
2023 /24(e) Profit Guidance If full price sales* - 1.5% £ profit before tax £795m % profit before tax - 8.7% Pre-tax EPS - 6.4% Effective tax rate 23.5% (up from 18.25%) Post-tax EPS - 12.5% * Full price sales excludes sales made through Total Platform websites.
Slide 51: NEXT plc The Big Picture
NEXT plc The Big Picture
Slide 52: NEXT Shareholder Return
NEXT Shareholder Return 1500p Pre-tax EPS 1000p Share price (indexed to Feb 2002) 500p 2 2 1 1 1 1 0 1 1 1 4 5 8 1 3 6 7 1 2 1 100 6 8 9 0 1 1 5 7 9 3 4 2 1 0p 2002/3 2023/24(e)
Slide 53: NEXT Shareholder Return
NEXT Shareholder Return 8 Year CAGR 1500p 5.4% Pre-tax EPS Including reinvested dividends 1000p 20 Year CAGR 2 14.1% 2 1 0 1 8 500p 1 1 1 1 7 4 5 6 1 3 1 1 2 1 1 1 9 9 0 8 6 7 5 3 4 1 2 0p 2002/3 2015/16 2023/24(e) * EPS data is sourced from Factset
Slide 54: NEXT Shareholder Return
NEXT Shareholder Return 8 Year CAGR Established Maturity? 1500p 5.4% Pre-tax EPS Including reinvested dividends 1000p 20 Year CAGR Growth? 14.1% 2 1 2 0 1 8 500p 1 1 1 1 7 4 5 6 1 3 1 1 2 1 1 1 9 9 0 8 6 7 5 3 4 1 2 0p 2002/3 2015/16 2023/24(e) * EPS data is sourced from Factset
Slide 55: NEXT Shareholder Return
NEXT Shareholder Return Established 1500p Pre-tax EPS Including reinvested dividends 1000p Online 2 + 98% NEXT sales 2 1 0 1 8 Retail 500p 1 1 1 4 1 5 1 6 7 - 27% 3 1 1 2 1 1 1 9 9 0 8 6 7 5 3 4 1 2 0p 2002/3 2015/16 2023/24(e) * EPS data is sourced from Factset
Slide 56: Established: NEXT Brand UK
Established Room for Growth NEXT Brand UK Market share by product 15% 7m UK customers 10% 9% Clothing Accessories 466 UK stores Lingerie 6% 6% Shoes 5% 3% 3% Broad product ranges Women’s Men’s Children’s Home Source: Kantar & Globalreach (Home), for 52 weeks to 3 Feb 2023
Slide 57: Total Platform
Established Total Platform 11m sq. ft. Better service Warehousing & Distribution Frictionless growth Lower costs (variable) >1,000 applications Capex free Bespoke Software & Systems Focus Warehouse capacity October 2023 Technology timescales >2,000 employees & 466 stores March 2024 Contact Centre &
Slide 58: Technology Timescales: Historical
Technology Timescales Historical COPY 1 Client A Client B Client C N1 A1 B1 C1 Update N2 A2 Update B2 Update C2 Update Slow development High parity costs
Slide 59: Technology Timescales: Today
Technology Timescales Today Template MASTER A1 Template N1 C1 Template B1
Slide 60: Technology Timescales: Today
Technology Timescales Today Template MASTER A21 Template N12 C21 Template Update B21 N2
Slide 61: Technology Timescales: Faster Deployment
Technology Timescales Faster Deployment Time to launch (months) - 11 - 10 -9 -8 -7 -6 -5 -4 -3 -2 -1 Launch 0 Manhours per month (indexed to 100) REISS 100% 11 months 100
Slide 62: Technology Timescales: Faster Deployment
Technology Timescales Faster Deployment Time to launch (months) - 11 - 10 -9 -8 -7 -6 -5 -4 -3 -2 -1 Launch 0 Manhours per month JoJo Maman Bébé (indexed to 36% 100) 50 REISS 100% 100
Slide 63: Technology Timescales: Faster Deployment
Technology Timescales Faster Deployment Time to launch (months) - 11 - 10 -9 -8 -7 -6 -5 -4 -3 -2 -1 Launch 0 Manhours per month (indexed to Made.com 100) 24% JoJo Maman Bébé 36% 66 REISS 100% 100
Slide 64: Technology Timescales: Faster Deployment
Technology Timescales Faster Deployment Time to launch (months) - 11 - 10 -9 -8 -7 -6 -5 -4 -3 -2 -1 Launch 0 Manhours per month New client (indexed to 100) 15% JoJo Maman Bébé 36% 55 Made.com 24% REISS 100% 100
Slide 65: Technology Timescales: Roll Out Potential
Technology Timescales Roll Out Potential • GAP • REISS • Victoria’s Secret • Laura Ashley 8 Subject to demand 4 2 2023/24 2024/25 2025/26
Slide 66: Established: Total Platform
66 Established Total Platform Warehousing & Distribution Equity Investments Bespoke Software & Systems Contact Centre & Stores
Slide 67: Equity Investments
Equity Investments Jan 2023 Profit TP trading profit 25% Share in the upside 75% Align interests Equity & preference dividends
Slide 68: Equity Investments
Equity Investments Investment Criteria Managing the Investments Great brands DNA Brand Independence NEXT acting as a Financial Investor The potential to add value Great management NEXT Operations Right price ‘More than a venture capitalist but not a retail conglomerate’
Slide 69: Total Platform, Equity Investments, Licensing & New Brands
69 Established Warehousing & Distribution Total Platform Bespoke Software & Systems Equity Investments Contact Centre & Stores Licensing & New Brands Sourcing & Product Skills
Slide 70: Licensing and New Brands
Licensing and New Brands Full price sales growth Licensing Home Fashion NEXT owned brands £85m £65m £20m £8m £43m £6m £57m £65m £6m £55m £37m £1m £12m £32m £5m 2020/21 2021/22 2022/23 2023/24(e)
Slide 71: Licensing and New Brands
Licensing and New Brands Full price sales growth Licensing £140m Home Net Margins Fashion 15% to 16% £20m NEXT owned brands £97m £8m £65m £55m £6m £57m £6m £37m £55m £1m £32m £5m £12m 2020/21 2021/22 2022/23 2023/24(e)
Slide 72: Established: NEXT Brand Overseas
Established Warehousing & Distribution Bespoke Software & Systems Total Platform Contact Centre & Stores Equity Investments Sourcing & Product Skills Licensing & New Brands NEXT Brand Overseas NEXT Brand
Slide 73: NEXT Brand Overseas: Market Penetration
NEXT Brand Overseas Market Penetration Total Global Spending by Region* NEXT Sales by Region Other 2% Americas Asia & Australia 7% 6% Europe Asia 22% 30% Middle 4% East Middle East Europe Americas 35% 52% German & Australia hub 42% * 2021or latest available Charts exclude UK
Slide 74: NEXT Brand Overseas: Market Penetration
NEXT Brand Overseas Market Penetration Total Global Spending by Region* NEXT Sales by Region Other 2% Americas Asia & Australia 7% 6% Europe Asia 22% 30% Middle 4% East Middle East Europe Americas 35% 52% New hub German & Australia planned hub 42% * 2021or latest available Charts exclude UK
Slide 75: NEXT Brand Overseas: Market Penetration
NEXT Brand Overseas Market Penetration Challenges NEXT Sales by Region • Consumer preference Americas Asia • Tariffs and admin & Australia 7% 6% • Delivery times • Strong local operators Opportunities Middle East Europe 35% 52% • Franchise and wholesale • Local aggregators DIRECT SHIP • Licensing FR
Slide 76: £39m, 5% of Group Profit
£39m 5% of Group Profit 2022/23 Profit Total Platform £5m Equity Investments £17m Licensing & New Brands £10m NEXT Brand Overseas £7m (Franchise)
Slide 77: Group Investment, Acquisitions and Third Parties Division
Group Investment, Acquisitions and Third Parties Division LABEL Partners Total Platform Equity Investments Licensing & New Brands NEXT Brand Overseas (Franchise)
Slide 78: The Priorities Ahead: Product
The Priorities Ahead Product FACTORY VISITS TRAVEL INSPIRATION SELECTION
Slide 79: The Priorities Ahead: Service
The Priorities Ahead Service PICK UP AUTOMATION PICK & PACK DELIVERIES & RETURNS ENQUIRY RESOLUTION
Slide 80: The Priorities Ahead: Costs
The Priorities Ahead Costs • Cost of goods • Cost of operations • Profitability • Technology value
Slide 81: The Priorities Ahead
The Priorities Ahead Total Platform Equity Investments Licensing & New Brands NEXT Brand Overseas Product NEXT BRAND Service Foundations Costs