Slide 1: Preliminary Results for the Year Ended 28 February 2014 and Q1 FY2015 Review
PRELIMINARY RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2014 AND Q1 FY2015 REVIEW
Slide 2: Today's Agenda
TODAY’S AGENDA 1. Highlights Carol Kane 2. Financial review Neil Catto 3. Business review Carol Kane 4. Q&A 1
Slide 3: Highlights
HIGHLIGHTS For the year to 28 February 2014 For Q1 FY15 to 31 May 2014 q Pro forma EBITDA £16.0m q Trading in line with q Revenue up 63% to £109.8m expectations for the full year (2013 £67.3m) q Acceleration in marketing q 2.3 million active customers spend and growth through up 54% the quarter
Slide 4: Neil Catto, CFO
NEIL NEILCATTO, CATTO,CFO CFO
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS For the year to 28 February 2014 For Q1 FY15 to 31 May 2014 q Revenue up 63% to £109.8m q Acceleration in growth (2013 £67.3m) through the quarter driven by q Pro forma EBITDA £16.0m increased marketing spend (2013 £8.6m) q Revenue growth 24% (28% q Pro forma gross margin a
Slide 6: Summary Income Statement
SUMMARY INCOME STATEMENT Year ended 28 February 2014 2013 Change (£m) q Strong revenue Revenue 109.8 67.3 +63% growth in all markets Gross profit 64.9 36.7 +77% q Gross margin Gross margin 59.1% 54.5% +460bps increase due to Operating profit 10.8 3.3 +229% change in sourcing Profit before tax 10.7
Slide 7: International
INTERNATIONAL Sales by geographic segment £m 2014 2013 Change CER UK 71.0 44.3 +60% +60% Rest of Europe 13.1 7.4 +78% +71% Rest of world 25.7 15.6 +65% +80% Total revenue 109.8 67.3 +63% +66% 109.8 International 38.8 q Strong growth globally UK 67.3 q Rest of world growth 23.0 driven by English 29
Slide 8: Operating Costs
OPERATING COSTS £m 2014 2013 Change 50.7% 52.1% 49.7% 49.6% Marketing 15.3 10.5 +47% 12.9% 14.6% Distribution 24.3 13.6 +78% 15.5% 14.0% Other admin 15.0 9.3 +61% TOTAL 54.6 33.4 +64% 24.0% 23.1% 20.2% 22.1% % revenue 2014 2013 Change 13.8% 14.4% 13.8% 13.6% Marketing 14.0% 15.5% -150bps Distributio
Slide 9: Operating Cash Flow
OPERATING CASH FLOW £m 2014 2013 q Efficient conversion of Profit for the year 8.4 2.6 EBITDA to cash Depreciation/amortisation 1.0 0.5 q Inventory tightly controlled Tax expense 2.3 0.6 on 8 weeks historical cover Finance expenses 0.1 0.1 q Increase in trade Increase in inventories (2.9) (3.4) r
Slide 10: Balance Sheet
BALANCE SHEET £m 2014 2013 Assets q Accelerated investment Intangible assets 3.1 0.6 programme funded from Property, plant and equipment 6.2 5.0 operating cash flow Non-current assets 9.3 5.6 q IPO proceeds of £46m (net of transaction related Working capital (1.1) (5.0) costs) received after the C
Slide 11: KPIs
KPIS Monthly sessions (millions) and 14 conversion rate2 9% Indicator 2014 2013 Change 13 8% 12 7% Active customers1 2.3m 1.5m +54% 6% 11 Number of orders 4.2m 2.5m +71% 5% 10 Conversion rate2 6.9% 6.0% +15% 4% 9 3% Average order value3 £37.48 £39.02 -4% 8 2% Number of items in a 7 1% 2.38 2.18 +9%
Slide 12: Investing in Our Warehouse Infrastructure
INVESTING IN OUR WAREHOUSE INFRASTRUCTURE Investing ahead of the curve for £1bn annual gross sales q Current phase of mezzanine construction nearly complete q Planning approval for 110,000 sq. ft warehouse extension q 670,000 sq. ft additional storage space q Enough for 8m additional units/4x cu
Slide 13: Investing in Our IT Systems
INVESTING IN OUR IT SYSTEMS Flexible, open architecture Current Initiatives q Flexible and agile systems q Optimisation of foreign architecture with Enterprise language websites front end Service Bus at the centre q Enables fast integration of many q Further foreign language sites different proj
Slide 14: Q1 Update
Q1 UPDATE Highlights q Gross margins maintained at 63% q Record quarter with sales up 24% (28% CER) − UK growth +44% − Rest of Europe +36% (41% CER) − Rest of the world down 20% (-7% CER) q Versus comparative quarter growth of 128% in Q1 FY2014 q Comps on top of last year ease through the year w
Slide 15: Q1 Update: Acceleration in Marketing Spend
Q1 UPDATE Q1 acceleration in marketing spend 80 12 q Revenue trends closely linked 70 to marketing spend 10 60 q Marketing expenditure was 8 50 14.0% of revenue for the year to 28 February 2014 40 6 q Q4 FY2014 marketing reduced 30 4 to 12.4% of revenue to allow for 20 investment in the warehouse
Slide 16: Carol Kane, Joint CEO
CAROL KANE, JOINT CEO
Slide 17: The Global Fashion Leader for a Social Generation
THE GLOBAL FASHION LEADER FOR A SOCIAL GENERATION Our fashion q Our focus remains on 16-24 year olds q Dresses represent over 30% of sales mix q Boutique grew by 170% during the year q Swimwear, knitwear and playsuits more than doubled q boohooMan building momentum (+175% for the year) q booho
Slide 18: Marketing
MARKETING Biggest ever TV campaign rolled out this summer #experienceeverything q Global campaign q Translated into some European languages Highly socially engaged TOP UK CLOTHING AND APPAREL SITES Website Rank customer base Next 1 q 2.1 million facebook likes ASOS 2 q 385k+ Twitter followers Ne
Slide 19: Style for Stroke
STYLE FOR STROKE Coverage so far… OK, Hello!, Reveal, Closer, Now, The Express, The Sun, Look Cosmopolitan, The Daily Mail Binky Felstead Mel B Lucy Watson Barry Sloane 16 Nick Ede Lilah Parsons Kelly Osbourne Sarah-‐Jayne Crawford
Slide 20: International
INTERNATIONAL Extending our global presence… q New foreign language sites - Boohoo FR showing good momentum - Boohoo ES now live q New currencies in progress for Scandinavia q In country teams planned for Australia, US, and Europe 17
Slide 21: Customer Service
CUSTOMER SERVICE Improving all the time q Customer service headcount doubled in last twelve months q Social media response in 30 minutes Improving delivery options q Sunday delivery now active q 10pm UK NDD cut-off imminent q Express international service q More returns options including alter
Slide 22: Mobile
MOBILE Mobile is an important channel and a big opportunity… 4.5 million shopping sessions from mobile phones in April 2014, up 78% on April 2013. q New mobile look and feel imminent q New Magento mobile site for Other France in the summer q New responsive mobile site on Mobile including tablet V
Slide 23: Summary
IN MOBILE SUMMARY q Proven business model – High gross margin and brand awareness – On-fashion at value price points – Translates globally q Innovative marketing campaigns q Investment in our infrastructure to support future sales of £1bn q Building international sales is a key focus q Deliveri
Slide 24: Q&A
a» Q&A boohoO.com
Slide 25: Disclaimer
DISCLAIMER This presenta5on has been prepared by Boohoo.com plc (“Boohoo” or the “Company”) and the informa5on contained herein is restricted and is not intended for distribu5on to, or use by any person or en5ty in any jurisdic5on or country where such distribu5on or use would be contrary to local l
Slide 26: Glossary
GLOSSARY Ac5ve customers: defined as having shopped in the last year Conversion rate: defined as the percentage of monthly unique visitors to the site making a purchase Average order value: calculated as gross sales including sales tax divided by the number of orders Number of items per basket: defined