Slide 1: Final Results for the Year Ended 29 February 2016
FINAL RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2016 26 April 2016
Slide 2: FY16 Highlights
FY16 HIGHLIGHTS Sales up 40% year on year (42% CER) UK up 38%, rest of Europe 25% (35% CER), rest of world up 56% (63% CER) Adjusted EBITDA £18.7m Over 4 million active customers, up 34% Launch of app in UK, USA and Australia Warehouse extension completed and in operation Range extension driving gro
Slide 3: Final Results - Neil Catto, CFO
FINAL RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2016 NEIL CATTO, CFO
Slide 4: FY16 Financial Highlights
FY16 FINANCIAL HIGHLIGHTS Revenues of £195.4m up 40% (42% CER) on 2014/15 (£139.9m) UK sales +38% year on year Rest of Europe +25% (+35% CER) Rest of world +56% (+63% CER) Gross margin 57.8% Retail gross margin 58.8% (FY15 – 60.8%) Adjusted EBITDA £18.7m (FY15 - £14.1m) Net cash £58.3m (FY15 - £54.1
Slide 5: Summary Income Statement
SUMMARY INCOME STATEMENT (£m) FY16 FY15 Change Revenue 195.4 139.9 +40% Gross margin at 57.8% reflects Gross profit 112.9 85.0 +33% investment in customer proposition Gross margin 57.8% 60.8% -300bps in UK and internationally along with growth in third party sales Distribution costs 45.5 30.7 +48% (
Slide 6: International
INTERNATIONAL Sales by geographic segment £m FY16 FY15 Change CER UK 130.1 94.3 +38% +38% Rest of Europe 22.6 18.1 +25% +35% Rest of world 42.7 27.4 +56% +63% Total revenue 195.4 139.9 +40% +42% 104.6 International UK 90.8 Continued strong growth globally 33.6 72.6 67.2 31.7 51.4 58.4 23.9 Europe im
Slide 7: Operating Costs
OPERATING COSTS Year ended 29 February £m FY16 FY15 Change 53.4% 53.6% 51.1% 50.1% 48.6% 47.7% Marketing 19.8 18.5 +7% Distribution 45.5 30.7 +48% 17.1% 17.3% 11.4% 16.9% 15.4% Other admin 33.3 23.7 16.8% +40% TOTAL 98.6 72.9 +35% 23.1% 21.8% 23.7% 20.9% 22.1% 22.9% Year ended 29 February, % FY16 FY
Slide 8: EBITDA Margin Development
EBITDA MARGIN DEVELOPMENT 18.0% 65.0% 70.0% Investing in the 61.5% 62.2% 60.5% 59.5% 16.0% 56.8% 60.0% 14.0% 15.4% customer proposition 13.9% 50.0% (price, product 12.0% 40.0% promotion, delivery 10.0% 10.1% 10.1% 10.6% 8.0% 30.0% offering) to improve 8.4% 6.0% 20.0% 4.0% 10.0% lifetime value has ai
Slide 9: KPIs
KPIs MONTHLY SESSIONS (MILLIONS) AND CONVERSION RATE2 Indicator FY16 FY15 Change 25.0 6.0% Sessions Conversion rate 5.0% Active customers1 4.0m 3.0m +34% 20.0 4.0% Number of orders 8.3m 5.8m +44% 15.0 3.0% Order frequency4 2.08 1.93 +8% 10.0 2.0% Conversion rate2 4.0% 3.6% +40bps 5.0 1.0% Average or
Slide 10: World Class Ecommerce Capability
WORLD CLASS ECOMMERCE CAPABILITY Data science with a commercial edge Attribution modelling Improving customer lifetime value Personalisation Building order frequency Multi variant testing Marketing effectiveness/ Price elasticity analysis ROI analysis Demand forecasting Promotion analysis 10
Slide 11: Operating Cash Flow
OPERATING CASH FLOW Year ended 29 February, £m FY16 FY15 Efficient conversion of EBITDA to cash with free cash flow up 109% year on year. Profit for the period 12.4 8.4 Depreciation/amortisation 3.1 2.0 Working capital inflow of £7m or 3.6% of sales. Share-based payment charges 0.6 0.3 Tax expense 3
Slide 12: Balance Sheet
BALANCE SHEET At 29 February, £m FY16 FY15 Assets Continued investment in Intangible assets 4.5 4.6 warehouse and IT Property, plant and equipment 21.4 10.9 infrastructure. Deferred tax 0.2 - Non-current assets 26.2 15.5 Negative net working capital. Working capital (4.2) (2.9) Net financial assets
Slide 13: Capex
CAPEX 16.0 Capital expenditure £M 2.0 Capital expenditure of £13.6m for 13.0 13.6 2.5 FY16 included £3.4m expenditure 1.5 3.4 to purchase two properties: one in 2.5 8.2 0.6 1.8 Burnley to increase the ultimate capacity of the distribution centre 3.1 4.5 11.5 (cost of £1.8m) and one in 9.0 7.8 Manche
Slide 14: Guidance
GUIDANCE Revenue growth c.25% EBITDA in line with current expectations Management will look at opportunities to further invest in customer lifetime value and market reach which may impact margins in the short term CAPEX £16.0m 14
Slide 15: Final Results - Carol Kane, Joint CEO
FINAL RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2016 CAROL KANE, JOINT CEO
Slide 16: Brand Update
16 UP TO DATE FASHION BRAND UPDATE INCREDIBLE PRICES UNBEATABLE CHOICE FANTASTIC SERVICE We are the young inclusive brand THE LEADING ONLINE FASHION Think of us as your fashion best friend BRAND FOR ALL 16-24 YEAR OLDS We Are Us, We Are You, We Are Boohoo GREAT QUALITY INTERNATIONAL REACH
Slide 17: Up to Date Fashion
UP TO DATE FASHION Trend led authoritative fashion Inclusive fashion for all Maximising the best Fast response supply chain, test and repeat model Plus, Petite, Tall, Main Range 17
Slide 18: Incredible Prices
INCREDIBLE PRICES Best price in the market for fashion Clear price architecture and stretch with entry and exit prices Promotional strategy to attract and convert visits to site 18
Slide 19: Unbeatable Choice
UNBEATABLE CHOICE 30,000 styles delivered to site in the last twelve months Best choice with nearly 20,000 styles available to shop Investment: 9,000 new styles in petite, plus and footwear New: 1,000 new styles in tall, lingerie and soft tailoring Continued introduction of new collections and Booho
Slide 20: Fantastic Service
FANTASTIC SERVICE Free UK delivery after 9pm and international markets with thresholds £1.99 next day delivery promotion throughout the day for next day service available until 9pm Order up to midnight for next evening delivery (6pm-10pm) available seven days a week Free returns in UK, Ireland and F
Slide 21: Great Quality
GREAT QUALITY Expanded QA team focused on UK supply chain, and all off-shore supply Supplier education with training & development program for key supply base Building block library to standardize fits 21
Slide 22: Continued Focus on UK Marketing
UK Continued focus on our Marketing Strategy, a combination of content created for above the line, and all Digital Channels Retention Marketing, to increase lifetime value of our Customer Utilise our Social Activity, so Customers become our Brand Ambassadors 22
Slide 23: USA
23 #theboohoostoreLA boohoO.com ple
Slide 24: France
24 #theboohoostore boohoO.com ple
Slide 25: Menswear
MENSWEAR BOOHOO MAN - Website now Launched Looking to market directly to a Male Consumer To do this we have unified a Menswear Focussed Team Faced the brand with Celeb – Scotty T Working with Male Influencers, across, TV, Gaming, Football, etc… MTV Male dedicated Idents 25
Slide 26: Summary
SUMMARY We have had a strong 12 month period We continue to be the brand with the leading fashion and price points We invest in our proposition to give our customers the best possible service We completed the first phase of our warehouse extension We launched our mobile app showing exciting results