Slide 1: July 2020 Summary
July 2020 Next
Slide 2: Summary results July 2020 vs July 2019
£m July 2020 July 2019 Total sales 1,357 2,059. Operating profit 30 341 Interest (74)) (AD) Profit before tax 9 320. The financial information presented excludes IFRS 16. Including IFRS 16 the statutory loss before tax for the 6 months to July 2020 is - £16.5m, compared to a profit before tax of £32
Slide 3: Income Statement
Income Statement next July 2020 1,357 30 (21) Profit before tax 320 Non-recurring profit and loss items Property profit 37 Business rates reduction 32 Stock provisions & fabric (39) Property provisions/impairment (37) Bad debt provision (20) Total (27)
Slide 4: Income Statement
Income Statement next July 2020 1,357 30 (21) Profit before tax KYO) Remove property profit (37) Taxable loss (28) Tax credit (offset H2 profit) 6
Slide 5: Income Statement
£m July 2020 July 2019 ae Total sales 1,357 2,059 - 34% - 33% Operating profit 30 34] Interest (21) (21) Profit before tax 9 320 Tax credit / (charge) 6 (59) Profit after tax 15 261 The financial information presented excludes IFRS 16. Including IFRS 16 the statutory loss before tax for the 6 months
Slide 6: Income Statement: brand full price sales
Income Stateme next Brand July 2020 Full Price Total sales £80m £70m e £60M og wae epee Tt 26 02 09 16 23 ol 08 15 22 29 05 12 19 26 03 10 7 24 3 07 14 2i 28 0 12 19 : Jan Feb Mar Apr May Jun Jul
Slide 7: Income Statement: SS20 poor performers
Income Statement next Total sales 2,059 - 34% - 33% SS20 Poor performers Formal Occasion Holiday Shoes & accessories FP sales - 53%
Slide 8: Income Statement: SS20 poor performers
Income Statement next Total sales 1,357 2,059 - 34% - 33% S$S20 Poor performers 2019 Split Formal Poor ; performers Occasion 48% Holiday Shoes & accessories FP sales - 53%
Slide 9: Income Statement: retail store sales
Income Statement next Total sales 2,059 - 34% -33% Retail store full price LFL sales | vs LY by store type Participation % by sales . . . Year to Jan 2020 City Regional Retail centre shopping centres parks 0% 10% — City centre - 20% — ‘onal | coca “oguaay “is - 30% —— centres sl - 40% Cumulative sal
Slide 10: £m July 2020 July 2019 Var
£m July 2020 July 2019 Var Operating profit 30 34] Interest (21) (CAD) Tax credit / (charge) 6 (59) Profit after tax 15 261
Slide 11: Income Statement
Income Statement next £m July 2020 Total lost sales - 702 Reduction in cost of stock Cancelled contracts Reduced buy Hibernated until Spring Summer 2021 Stock provisions & fabric
Slide 12: Income Statement
Income Statement next July 2020 Reduction in cost of stock + 220 Reduced wages +102 Reduced occupancy costs +45 Online marketing + 2] Other operational costs and group items +3 Profit before tax
Slide 13: Cash Flow
Cash Flow next July 2020 Var 9 - 311 Depreciation / disposals 61 Property disposal cash proceeds +147 Gain on sale and leaseback (non cash) - 37 +110
Slide 14: Cash flow summary
£m July 2020 July 2019 Var Profit before tax 9 320 - 311 Depreciation / disposals 174 61 +113 I Capital expenditure (47) (65) +18 Working capital / other 300 (3) Tax paid (77) (70) ESOT 7 (35) Cash flow before distribution 366 183 The cash flow statement is not presented on a statutory basis.
Slide 15: Cash Flow: capital expenditure
Cash Flow next Capital expenditure (47) Latest estimate £135m £139m mB £14m Bs & Head Off ace stems & Hea ice Space £241 ¥ 5 £39m Cosmeticrefts pace £29m £14m | Stores Cosmetic refits £10m Warehouse Jan 2021© Jan 2020
Slide 16: Cash Flow: 5 Year View
Cash Flow | 5 Year View next Capital expenditure | Systems & Head Office | Stores Warehouse £100m £100m Average spend £125m/pa Jan 2021 Jan 2022© Jan 2023 Jan 2024©) Jan 2025©
Slide 17: Cash Flow: 5 Year View
Cash Flow | 5 Year View next Capital expenditure | Systems | ezsm | | Head Office Jan 2021 Jan 2022© Jan 2023 Jan 2024©) Jan 2025©
Slide 18: Capital expenditure: Systems
Capital expenditure Cash Flow | 5 Year View next Systems | Capital spend | Revenue spend oa £98m £68m £8m Jan 2017 Jan 2021©
Slide 19: Cash Flow: capital expenditure average
Cash Flow next Capital expenditure 5 year average Jan 2021 to 2025 —» £125m/pa | Systems & Head Office | Stores Warehouse
Slide 20: Cash Flow: customer receivables
Cash Flow next July 2020 Var 9 - 311 174 +113 (47) +18 Working capital / other (28) Customer receivables + 220 14% Monthly payments as a % of customer balance 2020 13% <ce seen 12% eects — woe ec aec cease °° 2019 11% 10% Feb Mar Apr May Jun Jul
Slide 21: Cash Flow: working capital
Cash Flow next July 2020 Var 9 - 311 174 +113 (47) +18 Working capital / other (28) Customer receivables + 220 Stock reduction +94 VAT deferral + 20 Other -6
Slide 22: Cash flow with buybacks and net cash flow
£m July 2020 July 2019 Var Profit before tax 9 320 - 311 Depreciation / disposals 174 61 +113 Capital expenditure (47) (65) +18 Working capital / other 300 (239) +328 Tax paid (77) (70) -7 ESOT y | (35) +42 Cash flow before distribution 366 183 Buybacks (19) (280) + 261 I Net cash flow 347 (97) = +4
Slide 23: Net Debt and Financing Headroom
Net Debt and Financing | Headroom Jan 2020 Jul 2020 Jan 2021© £1.5bn Net debt £1.1bn £1.0bn £0.5bn fbn
Slide 24: Net Debt and Financing Headroom
Net Debt and Financing | Headroom next Jan 2021© £1.6bn £1.5bn £1.0bn + £1.1bn Bonds £0.5bn fbn Net debt Financing
Slide 25: Net Debt and Financing Headroom
Net Debt and Financing | Headroom next £1.5bn £1.25bn t E10 feeseon’ —— v 2021/22 Peak) £100m £0.5bn fbn Net debt Financing
Slide 26: Net Debt and Financing Headroom
Net Debt and Financing | Headroom Jan 2021© £1.5b6n £ibn £1.0bn Customer receivables £0.5bn fbn Net debt
Slide 27: Balance sheet July 2020 vs July 2019
£m July 2020 July 2019 Fixed assets and investments 465 575 Goodwill and intangibles 44 45 I stock 515 584 - 12% Debtors / receivables 1,111 1,309 Creditors / derivatives (865) (914) Dividends payable O (140) Pension surplus 88 142 Net debt (765) (1,193) Net assets 593 408 The financial information
Slide 28: Balance Sheet: debtors and receivables
Balance Sheet next July 2020 Var 465 44 515 - 69 Debtors / receivables 1,309 July 2019 £1.2bn “193 Increased debt provisions -2% = 29 ay20e0 Panentins to Accelerated payments in AW19 -2% July 2019 Customer receivables Full year credit sales
Slide 29: Balance sheet with variances
£m July 2020 July 2019 Var Fixed assets and investments 465 575 Goodwill and intangibles 44 45 Stock 515 584 - 69 Debtors / receivables 1,111 1,309 - 198 Creditors / derivatives (865) (914) Dividends payable O (140) Pension surplus 88 142 Net debt (765) (CRISES) I Net assets 593 408 +185 The financi
Slide 30: Slide 30
Slide 31: Online: Sales and Profit Analysis
Online | Sales and Profit Analysis Full price sales analysis + 6% v LY - 28% v LY + 21% v LY £40m 2019, geetteoettyer” ots te ee? rom s——- «wp i Sa © FEE — *@eece- f2om- = = 4 SB 4 WE BS 8beed £10m 7 26 Jan Feb 23Feb 8Mar 22Mar 5 17 Ma IMay 14Jun 28Jun 12 £0m
Slide 32: Online: Sales and Profit Analysis
Online | Sales and Profit Analysis next ; Lipsy UK - 48% Full price sales analysis = Increase on last year Other fashion brands - 19% NEXT brand UK - £46m - 10% Beauty & Home + 24% LABEL -£41m - 21% UK total - £87m - 13%
Slide 33: Online: Sales and Profit Analysis
Online | Sales and Profit Analysis next July 2020 Full Price 863 - 14% - 11% 128 . . Overseas Full price sales analysis by quarter Increase on last year Ql . 25% UK total - £87m - 13% Q2 + 19% Overseas -£8m - 3% Total -£95m -11% — + UKorders prioritised * Russian/German warehouse
Slide 34: Online: Sales and Profit Analysis
Online | Sales and Profit Analysis next July 2020 Full Price 863 - 14% - 11% 128 . . Overseas Full price sales analysis by channel Increase on last year 3rd parties + 55% UK total - £87m -13% NEXT Direct - 9% Overseas - £8m - 3% Total - £95m -11%
Slide 35: Online: Sales and Profit Analysis
Online | Sales and Profit Analysis next July 2020 Full Price 863 - 14% - 11% 128 . . Overseas Full price sales analysis by channel Increase on last year UK total - £87m -13% NEXT Direct - 9% Overseas -£8m Total - £95m -11%
Slide 36: Online: Sales and Profit Analysis
Online | Sales and Profit Analysis next July 2020 Full Price 863 - 14% - 11% 4 2:} Customer growth Full price sales Avg. customers UK total - 13% + 2.5% Overseas - 3% 0% Total -11% +1.9%
Slide 37: Online: Sales and Profit Analysis
Online | Sales and Profit Analysis next July 2020 Full Price 863 - 14% - 11% 4 2:} Customer growth Full price sales Avg. customers UK credit - 21% 0% UK cash + 16% + 6% UK total - 13% + 2.5%
Slide 38: Online: Sales and Profit Analysis
Online | Sales and Profit Analysis next Total sales Reduction in cost of stock +45 Reduced wages + 32 Marketing + 2) Logistics costs -5 Operating profit
Slide 39: Divisional Analysis: NEXT Finance
Slide 40: NEXT Finance: Key drivers of sales and profit
NEXT Finance | Key drivers of sales and profit next £m July 2020 July 2019 Il creait sales* 620 833 - 26% Average number of customers (000s) 2,569 2,568 0% Sales per customer £241 £325 - 26% Credit merchandise sales 6 months to July 2019 Markdown Children & Home Adult fashion * Includes Online and R
Slide 41: NEXT Finance: Key drivers of sales and profit
NEXT Finance | Key drivers of sales and profit next £m July 2020 July 2019 Credit sales* 620 8535 - 26% i Average number of customers (000s) 2,569 2,568 0% Sales per customer £241 £325 - 26% + 3% 0% Active credit customers v LY - AY 8 Jan Feb Mar Apr May Jun Jul Aug * Includes Online and Retail sale
Slide 42: NEXT Finance: Income Statement
NEXT Finance | Income Statement Bad debt charge (4:)) (19) + 53% Lower provision due to lower credit sales 6 Sale of previously written off debt 4 Provision for potential defaults from COVID (20) July 2020 (29)
Slide 43: NEXT Finance: Income Statement
NEXT Finance | Income Statement next Profit 59 76 - 22% Avg. customer receivables 1,094 1,167 Annual return on capital employed** 10.8% 13.0%
Slide 44: Divisional Analysis
DIVISIONAL ANALYSIS
Slide 45: Retail: Sales and Profit Analysis
Retail | Sales and Profit Analysis Full price sales analysis £40m ° e . ee H . e i . ° . H : 2019 8° “seeesaee a . £30m i =o, * ee eoeeey . : 5 ry ecoe® peee : . .° ° H H . H é e £20m = eT : - £10m ee 1 op boEEES £0m : 26Jan O9Feb 23Feb O8Mar 22Mar OSApr 19 Api 17 Ma 1 Ma: 14 Jun 28 Jun 1 Week comme
Slide 46: Retail: 2020/21 Occupancy
Retail | 2020/21‘) Occupancy Next Store openings = SS pextg’ ed FAVE STONE) Mainline stores only
Slide 47: Retail: 2020/21 Occupancy
Retail | 2020/21‘) Occupancy next Store openings Store closures Lease renewals Mainline stores only
Slide 48: Retail: 2020/21 Rent Negotiations
Retail | 2020/21) Rent Negotiations Including short term leases (< 2 years) f Annualised impact ! Includes amortisation of unspent capital contributions / rent free periods over the lease length 2 Average profit based on sales for the year to January 2020, less 20%
Slide 49: NEXT PLC Scenarios: Full Year Sales and Profit
NEXT PLC SCENARIOS Full Year Sales and Profit
Slide 50: Jan Feb Mar Apr May Jun Jul
26 02 09 16 23 01 08 15 22 29 05 12 19 26 03 10 7 24 31 07 05 Jan Feb Mar Apr May Jun Jul
Slide 51: 2020/21 Full Price Brand Sales Analysis
2020/21 Full Price Brand Sales Analysis next £80m £70m £60m £50m £40m £30m £20m £10m £m
Slide 52: 2020/21 Full Price Brand Sales Analysis
2020/21 Full Price Brand Sales Analysis Next £80m £60m £50m £40m
Slide 53: 2020/21 Full Price Brand Sales Analysis
2020 /21 Full Price Brand Sales Analysis Scenario v LY Upside Central Downside H1 - 33% H2 Todate +4% H2©) Rest of year -4% -12% - 34% H2©) -2% - 8% - 25%
Slide 54: 2020/21 Full Price Brand Sales Analysis
2020 /21 Full Price Brand Sales Analysis Scenario v LY Upside Central Downside H1 - 33% H2) -2% - 8% - 25% Full Year -17% - 20% - 29% Underlying PBT“ £370m £300m £110m Net Debt * £635m £650m £825m * As at 53" week
Slide 55: Talking Points
Slide 56: Sales resilience
Sales resilience
Slide 57: Financial stability
Financial stability
Slide 58: New opportunities
New opportunities
Slide 59: Childsplay Clothing Autumn/Winter 20
AUTUMN / WINTER ‘20 GUCCI Explore iconic Gucci styles reimagined 11:19 BBO - OQ | @ childsplayclothing.co.uk Se Se GIVENCHY Evoncmen MOSCHINO BALeNciAGa GUCCI BURBERRY FEP NEWIN BABY BOYS GIRLS SHOES perRY MOSCHINO FENDI — re > So Le >
Slide 60: Childsplay sign in with Next account
< SIGN IN / REGISTER QQ @ childsplayclothing.co.uk/sec ic SIGN IN / REGISTER Great news, Childsplay is now partnered with Next! If you Great news, Childepayis now partnered with Next! fyou have previously registered with Next, please use your have previously red with Next, please use your ISA oe cr
Slide 61: Payment options with Nextpay credit
< o PAYMENT Hep (] Order Value £150.00 Total (Incl. Delivery: £4.95) £154.95 <« a Order Value ‘Total (Incl. Delivery: £4.95) ne XC pay Pay later 23.9% APR Representative Variable. pay Pay later Comgare our adh enters PAY WITH CREDIT® PAY WITH CREDIT* NEXCDAY Spree tne cost amore 22.9% APR varie Next
Slide 62: Childsplay Clothing packaging
Slide 63: Childsplay Clothing packing stations
Slide 64: NEXT Total Platform
Slide 65: NEXT Total Platform
NEXT Total Platform next Sales Channels Retail systems Retail logistics
Slide 66: TOTAL: Pre-integrated
TOTAL ‘@) Pre-integrated
Slide 67: TOTAL: Commission model
Wa TOTAL ‘@) Pre-integrated ‘@) Commission model ¢ Variable cost base * Capex free ¢ Interests aligned
Slide 68: TOTAL: Better service at lower cost
WA TOTAL ‘@) Pre-integrated ‘@) Commission model ‘@) Better service at lower cost ‘@) Painless growth
Slide 69: Brand Focus and NEXT Operations
‘@) Brand Focus » Design » Sourcing » Buying » Photography ~ Branding © NEXT Operations
Slide 70: Victoria's Secret
VICTORIA'S SECREM Owned by Lbrands.
Slide 71: NEXT Total Platform: Victoria's Secret
NEXT Total Platform VICTORIA'S SECRET (0) Joint Venture 49 %o UK & Eire Licence Agreement subject to regulatory clearances.
Slide 72: Joint Venture / UK & Eire Licence
Joint Venture UK & Eire Licence victoriassecret.com/GB next.co.uk
Slide 73: Joint Venture / UK & Eire Licence
Joint Venture UK & Eire Licence
Slide 74: Joint Venture: Profits / UK & Eire Licence
Joint Venture Profits UK & Eire Licence
Slide 75: Joint Venture: Profits / UK & Eire Licence
Joint Venture Profits UK & Eire Licence
Slide 76: Joint Venture / UK & Eire Licence
Joint Venture UK & Eire Licence
Slide 77: Joint Venture / UK & Eire Licence
Joint Venture UK & Eire Licence next.co.uk
Slide 78: next.co.uk
next.co.uk
Slide 79: Leverage: Total Platform
Slide 80: Four tests...
Four tests... Create Play to our Make a Return value strengths margin on capieal RaBiored Leverage
Slide 81: July 2020 Summary
Slide 82: Slide 82