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: WH Smith PLC Interim Results
WH Smith PLC Interim Results 27 April 2022
Slide 3: Agenda
Agenda 1▪ Introduction Carl Cowling 2▪ Financial Review Robert Moorhead 3▪ Business Review Carl Cowling 4▪ Questions 3
Slide 4: Overview: Recovery drives first half profitability
Overview: Recovery drives first half profitability ▪ Successfully managed the business through the pandemic; emerged a stronger business ▪ Capitalised on the many opportunities available ▪ Strong rebound in profitability; on track to deliver meaningful profit in FY22 ▪ Good recovery across all our T
Slide 5: Financial Review
Financial Review Robert Moorhead Chief Financial Officer and Chief Operating Officer
Slide 6: Group financial summary
Group financial summary1 6 months to 6 months to Feb 2022 Feb 2021 £m £m Revenue 608 420 Headline Group profit / (loss) from trading operations 2 36 (4) Headline Group profit / (loss) before tax 3 14 (19) Headline earnings / (loss) per share 3, 4 6.9p (13.6)p Free cash flow (£m) (29) (13) Net cash o
Slide 7: Revenue analysis
Revenue analysis 6 months to 6 months to Feb 2022 Feb 2021 Change £m £m % UK 189 79 139% North America 116 55 111% Rest of World 33 16 106% Total Travel 338 150 125% High Street 1 270 270 -% Total revenue 608 420 45% 1 Includes internet businesses. 7
Slide 8: Revenue has improved during the half
Revenue has improved during the half 120% Omicron NA % of Calendar 2019 Revenue 100% UK 80% RoW 60% 40% 20% 0% Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr ⁴ 2021 / 2022 1 Includes UK InMotion stores. Travel UK ¹ Travel NA ² Travel RoW ³ 2 Includes pro-forma MRG. Constant currency. 3 Constan
Slide 9: Income statement
Income statement1 6 months to 6 months to Feb 2022 Feb 2021 £m £m UK 2 3 (19) North America 2 8 (3) Rest of World 2 (1) (6) Total Travel 2 10 (28) High Street 2 26 24 Headline Group profit / (loss) from trading operations 2 36 (4) Unallocated central costs (10) (9) Headline Group operating profit /
Slide 10: Group free cash flow
Group free cash flow1 6 months to 6 months to Feb 2022 Feb 2021 £m £m Group operating profit / (loss) 2 26 (13) Depreciation, amortisation and impairment 3 24 25 Non cash items 5 3 Operating cash flow 4 55 15 Capital expenditure (38) (22) Working capital 3 (36) (1) Net tax paid (3) - Net interest pa
Slide 11: Headline net debt (pre-IFRS 16)
Headline net debt (pre-IFRS 16) Movement in Headline net debt Committed facilities £m £m Maturity Headline net debt at 31 August 5 year convertible bond 327 April 2026 2021 (291) Term debt 133 April 2025 460 Movement in year Free cash flow (29) RCF (undrawn) 250 April 2025 Pensions (1) Non-underlyin
Slide 12: Business Review: WH Smith Travel
Business Review WH Smith Travel
Slide 13: Travel Strategy
Travel Strategy ▪ Remain focused on initiatives within our control; continue to make good progress operationally with significant new space opportunities ahead ▪ Key areas of focus are relevant for all channels and territories across UK Travel, North America, and Rest of the World CATEGORY COST & CA
Slide 14: Travel UK
amy Travel UK ail FOR EVERY EIEICOLIUGAN there’s a WHSmith
Slide 15: Well positioned as the recovery continues
Well positioned as the recovery continues ▪ Strong recovery post Omicron variant peak and relaxation of UK Government restrictions ▪ Optimistic in recovery: ✓ Strong performance over Easter; revenue up 106% versus 2019 ✓ Pent up demand for leisure travel, particularly school holidays ✓ Strong Februa
Slide 16: Improving trends across all key channels
Improving trends across all key channels H1 FY 2022 Q31 % of calendar 2019 2022 to date 60% 104% Air 90% 98% Hospitals 70% 84% Rail 1 8 weeks to 23 April 2022 16
Slide 17: One-stop-shop for travel essentials
One-stop-shop for travel essentials ▪ Focus on format development continues to generate significant opportunities across all channels ▪ Constantly evolving and responding to customer and landlord needs; reposition from news, books and convenience retailing to a unique one-stop-shop travel essentials
Slide 18: Continued evolution of store formats drives opportunities across all channels
Continued evolution of store formats drives opportunities across all channels Heathrow T2 WH Smith Airside Sales by Category 100% Other ✓ Strong customer proposition Tech News & Mags 90% Souvenirs 80% ✓ Increased penetration Books 70% ✓ ATV Growth 60% Health & Beauty 50% ✓ Increased spend per passen
Slide 19: InMotion opens in 14 UK airports
InMotion opens in 14 UK airports ▪ Combining the learnings and expertise from InMotion North America, these stores provide a first class customer service experience and showcase a range of premium brands ▪ Tech accessories is a strong growth market ▪ Early performance indicates annual sales ahead of
Slide 20: Improving and growing our space
Improving and growing our space Hospitals: ▪ Robust market with significant opportunity to grow our space and improve the retail provision in hospitals ▪ Strong proposition; continue to invest in a broad suite of brands and formats to tailor our offer and meet the needs of hospital trusts: ✓ M&S Sim
Slide 21: Opportunities for further space growth across all UK Travel channels
Opportunities for further space growth across all UK Travel channels ▪ Continue to invest in our stores and identify new and improved space opportunities across all channels: Air, Hospitals and Rail ▪ Opened 30 stores since start of financial year ▪ On track to open a further 15 stores in H2; includ
Slide 22: Travel North America
Travel North America FOR EVERY EUCMIEIOGE there’s a WHSmith
Slide 23: Significant opportunity to grow business further
Significant opportunity to grow business further ▪ Largest travel retail market in the world; valued pre-pandemic at c.$3.2bn ▪ Significant opportunities to grow this business further ▪ Good recovery in North America; TSA1 data shows consistent, steady recovery in passenger numbers across US airport
Slide 24: Strong pipeline of new store openings
Strong pipeline of new store openings Travel North America store pipeline Capex (est): $29m $30m $22m 24
Slide 25: Significant opportunity for further wins
Number of stores 20 40 60 80 0 100 120 Atlanta (ATL) Los Angeles (LAX) Chicago (ORD) Dallas Fort Worth (DFW) Denver (DEN) New York (JFK) San Francisco (SFO) Seattle (SEA) Orlando (MCO) Sources: FAA 2019 ranking of airports by enplanements;, AXN Fact Book 2021 Las Vegas (LAS) MRG/ InMotion Charlotte
Slide 26: First WH Smith branded store opened in North America
First WH Smith branded store opened in North America ▪ Opened in LaGuardia Airport, New York ▪ Store operates with Just Walk Out technology to offer customers frictionless checkout free experience ▪ Positive customer and landlord feedback to date 26
Slide 27: Travel Rest of the World (ROW)
Travel Rest of the World (ROW)
Slide 28: New business wins across key territories
New business wins across key territories ▪ Very low market share with a strong and compelling proposition tailored to each territory ▪ Significant opportunity to grow our footprint through NBC and technology tenders using our three economic models: directly-run, joint venture and franchise ▪ Opened
Slide 29: Significant tender won in Spain
Significant tender won in Spain ▪ Significant tender won in Spain; now the No. 1 market leader in NBC stores across Spanish airports ▪ 31 additional directly-run new stores won across 10 Spanish airports, taking the total number of stores we operate in Spain to over 50 ▪ Airport locations to include
Slide 30: WH Smith Travel: Significant growth opportunities
WH Smith Travel: Significant growth opportunities ▪ Good recovery post Omicron variant across all our markets ▪ Well placed to benefit as the recovery continues ▪ ATV growth holding firm despite increase in passenger numbers ▪ Strong pipeline of new space across all channels and territories ▪ Won ov
Slide 31: High Street
High Street FOR EVERY HO ORMEG there's a WHSmith
Slide 32: Strategy continues to deliver
Strategy continues to deliver ▪ High Street strategy continues to serve us well, strategy as relevant today as it has ever been ▪ Increased our investment and focus on whsmith.co.uk SPACE CATEGORY MARGIN COST MANAGEMENT MANAGEMENT GROWTH MANAGEMENT ATV growth ▪ Utilise space to ▪ Enhance ranges ▪ Ca
Slide 33: Business is resilient and an important cash generator
Business is resilient and an important cash generator ▪ High street retail market changed rapidly during pandemic; high street footfall down 20% on 2019 levels ▪ Supported by a growing internet channel with whsmith.co.uk and cultpens.com ▪ Reacted quickly to changing market: ✓ Creating greater flexi
Slide 34: Cost efficiencies continue to be a key element of the strategy
Cost efficiencies continue to be a key element of the strategy ▪ On track to deliver savings of £41m in full year; savings from right across the business, slightly ahead of plan ▪ Flexible lease portfolio: ✓ c.450 leases up for renewal over next three years; continue to evaluate each store on a case
Slide 35: Funkypigeon.com - Investing for future growth
Funkypigeon.com - Investing for future growth ▪ Update on cyber security incident ▪ Underpenetrated market; online greetings card market c.15% of UK greetings card market1 ▪ Total revenue of £21m in the period reflecting the levels of lockdown in 2021 ▪ Significant opportunities to grow the platform
Slide 36: ESG – 'Our journey to a better business'
ESG – ‘Our journey to a better business’ ▪ Joined UNFCC’s Race to Zero Campaign ✓ Met target for zero carbon for Scope 1 and 2 in the UK ✓ On track to reach the same goals internationally by 2025 ✓ Now powered by 100% renewable electricity; engaging with suppliers to target Scope 3 emissions ▪ Inclu
Slide 37: Strong growth prospects for Travel
Strong growth prospects for Travel ▪ The Group is operationally stronger than prior to the pandemic ▪ Strong rebound in profitability ▪ Substantial growth opportunities for Travel ▪ InMotion now the market-leading technology business in travel locations in the world ▪ Significant growth opportunitie
Slide 38: Questions
= WH Smith Ar Questions FOR EVERY EIEICOLIUGAN there’s a WHSmith
Slide 39: Appendix
h 1792 Appendix FOR EVERY EIEICOLIUGAN there’s a WHSmith
Slide 40: IFRS 16 – Impact on balance sheet
IFRS 16 – Impact on balance sheet Headline Pre-IFRS 16 IFRS 16 IFRS 16 £m 28 Feb 2022 Adjustment 28 Feb 2022 Goodwill and other intangible assets 484 (1) 483 Property, plant and equipment 182 7 189 Right-of-use assets - 330 330 Investments in joint ventures 2 - 2 668 336 1,004 Inventories 153 - 153
Slide 41: IFRS 16 – Impact on income statement
IFRS 16 – Impact on income statement Headline Pre-IFRS 16 IFRS 16 IFRS 16 £m 28 Feb 2022 Adjustment 28 Feb 2022 Revenue 608 - 608 Travel UK trading profit1 3 6 9 North America trading profit1 8 - 8 Rest of World trading loss1 (1) (1) (2) Total Travel trading profit1 10 5 15 High Street trading profi
Slide 42: IFRS 16 – Impact on cash flow statement
IFRS 16 – Impact on cash flow statement Headline Pre-IFRS 16 IFRS 16 IFRS 16 £m 28 Feb 2022 Adjustment 28 Feb 2022 Net cash flows from operating activities - 43 43 Net cash outflow from investing activities (38) - (38) Net cash outflow from financing activities (4) (43) (47) Total cash flow (42) - (
Slide 43: WH Smith PLC Interim Results
WH Smith PLC Interim Results 27 April 2022