Slide 1: Forward-looking statements
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 expressed or im
Slide 2: WHSmith Preliminary Results
WHSmith The global travel retailer Preliminary Results 9 November 2023 FOR EVERY ERCICUCUOUEED th
Slide 3: Agenda
WHSmith est1792 4 | Introduction Carl Cowling 2 | Financial Review Robert Moorhead Business Review Carl Cowling 4 | Questions
Slide 4: Year of significant growth across the Group
Year of significant growth across the Group Group is now in its strongest ever position as a global travel retailer ~" Strong performance across the Group Headline Group profit of £143m ® Significant growth in Travel retail 43 stores opened in NA, 55 in ROW and 20 in UK Y Substantial tender wins New
Slide 5: Our advantaged growth model
Our advantaged growth model WHSmith est 1792 Passenger Numbers
Slide 6: Ongoing recovery and structural growth
Ongoing recovery and structural growth
Slide 7: Format and category development
Format and category development
Slide 8: Forensic approach to retail
Our advantaged growth model WHSmith est +1792 Margin Growth Forensic approach
Slide 9: Expect to win, on average, 50 to 60 stores p.a.
Expect to win, on average, 50 to 60 stores p.a.
Slide 10: Strong revenue growth, EBIT margin accretion, substantial cash generation
Strong revenue growth EBIT margin accretion Substantial cash generation Capital allocation policy focused on value creation
Slide 11: Global passenger number projections
Global passenger number projections WHSmith 22 20 Traffic continues recovering towards previously 18 projected levels 16 14 Return to 2019 — levels of traffic g 12 a a 10 9.4 ” 92 . 5 88 8.6 2 a 8 3 6.6 2 Be 4.6 46 4 3.6 | 2 Sh nM O_O KA AD 0 9D > i PP os J Ps > SS Sor eyo og og oh oOo ogo orn r PH
Slide 12: Financial Review
Financial Review Robert Moorhead Chief Financial Officer and Chief Operating Officer gue ine FOR EVERY EIEIOLINIGES there’s a WHSmith
Slide 13: Year to Aug 2023 results summary
Year to Year to Aug 2023 Aug 2022 % change Revenue (£m) 1,793 1,400 28% Headline Group profit from trading operations 2 (£m) 196 122 61% Headline Group profit before tax 3 (£m) 143 73 96% Headline earnings per share 3, 4 (p) 80.3p 41.7p 93% Free cash flow (£m) 20 41 Leverage 1.4x 2.0x Total dividend
Slide 14: Group revenue by division
Year to Year to Aug 2023 Aug 2022 vs 2022 £m £m Total LFL1 Travel UK 709 521 36% 30% North America 380 288 32% 11% Rest of the World 235 118 99% 53% Total Travel 1,324 927 43% 27% High Street 2 469 473 (1)% 1% Group revenue 1,793 1,400 28% 18% 1 Constant currency 2 Includes internet businesses 14
Slide 15: Travel revenue growth by channel
Total vs 2022 LFL1 vs 2022 H1 H2 FY H1 H2 FY Air 124% 18% 48% 89% 18% 37% Hospitals 34% 30% 32% 30% 23% 26% Rail 25% 8% 15% 28% 12% 19% Travel UK 66% 18% 36% 52% 17% 30% North America 53% 17% 32% 22% 3% 11% Rest of World 209% 55% 99% 122% 27% 53% 75% 23% 43% 48% 15% 27% 1 Constant currency 15
Slide 16: Profit by division
Year to Year to Aug 2023 Aug 2022 £m £m Travel UK 2 102 54 North America 2 49 31 Rest of the World 2 13 4 Total Travel 2 164 89 High Street 2 32 33 Headline Group profit from trading operations 2 196 122 Unallocated central costs (27) (24) Headline Group operating profit 3 169 98 Headline net financ
Slide 17: Cash flow
Year to Year to Aug 2023 Aug 2022 £m £m Group operating profit 2 169 98 Depreciation, amortisation and impairment 3 52 49 Non cash items 14 8 Operating cash flow 4 235 155 Capital expenditure (122) (83) Working capital 3 (64) (10) Net tax paid (13) (6) Net interest paid (16) (15) Free cash flow 20 4
Slide 18: Net debt and debt maturity profile
Year to Year to Aug 2023 Aug 2022 Debt maturity profile £m £m £m Maturity Opening net debt (296) (291) Convertible bond 327 May 2026 Free cash flow 20 41 RCF2 400 June 2028 Dividends paid (22) - 727 Pensions - (2) Net purchase of own shares (8) (7) Other1 (15) (21) Non-underlying items (9) (16) Move
Slide 19: Capital allocation policy
Capital allocation policy WHSmith est +1792 Efficient balance sheet Target leverage of 0.75- 1.25x EBITDA! FY23 Leverage 1.4x 1 Pre-IFRS 16 19
Slide 20: Business Review
Business Review Travel WORMS there's a WHSmith
Slide 21: Strategic priorities
Strategic priorities Space Growth ATV Growth Opened 118 stores in = Space the year management Strong pipeline with accelerating win rate; over 110 stores won and yet to open = Store refits =" Cross category Expect to win 50 to promotions 60 stores, on average, per year = Re-engineering Focus on bett
Slide 22: Multi-format, multi-brand global travel retailer
Multi-format, multi-brand global travel retailer operating over 1,200 stores across more than 30 countries Extensive space growth opportunities globally through format development, tailored ranging and localisation North American expertise continues to deliver good results globally Strong track reco
Slide 23: North America
North America
Slide 24: Excellent prospects in North America
Excellent prospects in North America WHSmith World’s largest travel retail market with annual revenue of c.$3.8b0n c.2,000 news, gifts and specialty retail stores operating across the top 70 North American airports Significant growth opportunities Anticipate market share growth to increase from c.13
Slide 25: Los Angeles Nashville Jacksonville
Los Angeles Nashville Jacksonville 25
Slide 26: Further success with Kansas City airport win
Further success with Kansas City airport win Significant tender win at Kansas City airport Won and now operate c.85% of the retail space in the airport, comprising 8 stores Winning formula of a localised design and a tailored product offer driving good performance opened 8 different brands in this a
Slide 27: Number of stores
Number of stores 0 20 40 60 80 100 120 140 Atlanta (ATL) Los Angeles (LAX) Chicago (ORD) Dallas/Fort Worth (DFW) Denver (DEN) New York (JFK) San Francisco (SFO) Seattle (SEA) Orlando (MCO) Las Vegas (LAS) Charlotte (CLT) MRG/InMotion Newark (EWR) Phoenix (PHX) Houston (IAH) Miami (MIA) Other news/sp
Slide 28: Rest of the World
Rest of the World CROW) ’sa WHSmith
Slide 29: Extensive opportunities to scale travel retail format globally
Extensive opportunities to scale travel retail format globally ©WHSmith Clear strategy to continue to enter new countries using our 3 operating models, scale our presence, create efficiencies, build global supplier relationships and deliver good returns The scalability of the Group’s retail formats
Slide 30: Number of stores
45 40 35 30 Number of stores 25 20 15 10 5 0 Airports Total Stores InMotion Stores WHS Stores Based on store numbers including stores won and not yet open. Pax Data ACI World Data set
Slide 31: Building the Rest of the World pipeline
Building the Rest of the World pipeline WHSmith Excellent progress made in the year WH Smith 30 stores won across new and existing countries comioa Besa © F000! Localised store design and product offer continues to support successful and accelerated win rate Opened 55 new stores and won 30 new store
Slide 32: InMotion now a globally recognised brand
InMotion now a globally recognised brand WHSmith Global expansion further supported by technology tender wins under the InMotion brand InMotion now present in 5 countries outside of North America and the UK 3 new InMotion stores won in the year in Italy Stockholm Arlanda airport Strong product offer
Slide 33: Travel UK
Travel UK JORMEG there's a WHSmith
Slide 34: Strong growth in our largest division
Strong growth in our largest division Strong market position across all channels Further growth prospects through margin growth, new space opportunities and category expansion Continued focus on innovation and investing in stores across Air, Hospitals and Rail 20 stores opened in year. c.15 stores p
Slide 35: Air: further success with one-stop-shop format
Air: further success with one-stop-shop format One-stop-shop format continues to generate significant opportunities and improve profitability New flagship store due to open this month at Birmingham International airport Largest UK Travel format at 6,000 sq ft. Very strong customer proposition and lo
Slide 36: Hospitals: strong performance
Hospitals: strong performance Second largest channel in Travel UK behind Air Robust market with continuing opportunities to grow our space under the WHSmith brand and coffee offers Continue to invest in existing store estate with strong store pipeline Opened 8 new Hospital stores in year, including
Slide 37: Rail: good performance
Rail: good performance Smallest channel in Travel UK representing c.15% of revenue Resilient performance despite industrial action Leisure passengers more valuable than commuter passengers Continue to invest in existing store estate London Paddington refit driving strong uplift in sales Extended hea
Slide 38: Launched new premium gifting brand
Launched new premium gifting brand WHSmith New premium gifting store launched under curi.o.city brand Constantly innovating to create a new, tailored, localised product offer for each location Strong focus on a real ‘sense of place’ 6 stores now open at London Gatwick and Bristol airports, St Pancra
Slide 39: Outlook for global Travel business is strong
Outlook for global Travel business is strong WHSmith Excellent progress made in the year Strong revenue growth driven by: improving passenger numbers, ATV growth, margin growth and new space opportunities Scale of the growth opportunities across the globe is substantial High success rate of winning
Slide 40: High Street
High Street FOR EVERY FIORE there’s a WHSmith
Slide 41: Good, profitable performance
Good, profitable performance WHSmith Good performance with profit of £32m Continued focus on retail fundamentals and forensic approach to retailing delivering good results Good growth opportunities with funkypigeon.com £15m cost efficiencies delivered in the year with £10m planned for FY24 Savings c
Slide 42: ESG: Our journey to a better business
ESG: ‘Our journey to a better business’ WHSmith Continued good progress to deliver against our sustainability oy commitments Rated =a MORNINGSTAR | SUSTAINALY TICS aes 1 @ Morningstar’s Sustainalytics ESG ESG RATINGS Benchmark — ccc| 68 | 5B | 6B) A BEY Aaa] ~wCDP DISCLOSURE INSIGHT ACTION Member of
Slide 43: ESG: supporting our people
ESG: supporting our people Increased pay award for colleagues to support with cost of living pressures Expedited 2023 pay award for store colleagues Continued progress with Diversity, Equity and Inclusion activity: launched Dis-Ability, Race & Culture, Gender, Parents and Carers, and Pride networks
Slide 44: Well positioned to capitalise on existing and new opportunities
Well positioned to capitalise on existing and new opportunities Expect significant growth and profitability in the current year Travel business highly scalable with over 1,200 stores across 32 countries Good growth opportunities across all three Travel divisions Highly cash generative £140m of capex
Slide 45: WHSmith Preliminary Results
WHSmith The global travel retailer Preliminary Results FOR EVERY EXO there’
Slide 46: Appendix
Appendix OROEG there’s a WHSmith
Slide 47: Store numbers by division
As at Opened Closed As at 31 Aug 2022 in the year in the year 31 Aug 2023 Travel UK 587 20 (19) 588 North America 298 43 (14) 327 Rest of the World 311 55 (28) 338 Total Travel 1,196 118 (61) 1,253 High Street 527 - (13) 514 Group 1,723 118 (74) 1,767 47
Slide 48: Headline Pre-IFRS 16 to IFRS balance sheet 31 Aug 2023
Headline Pre-IFRS 16 IFRS 16 IFRS 16 £m 31 Aug 2023 Adjustment 31 Aug 2023 Goodwill and other intangible assets 506 (1) 505 Property, plant and equipment 263 7 270 Right-of-use assets - 444 444 Investments in joint ventures 2 - 2 771 450 1,221 Inventories 205 - 205 Payables less receivables (216) (3
Slide 49: Headline Pre-IFRS 16 to IFRS income statement
Headline Pre-IFRS 16 IFRS 16 IFRS 16 £m 31 Aug 2023 Adjustment 31 Aug 2023 Revenue 1,793 - 1,793 Travel UK trading profit/(loss)1 102 (1) 101 North America trading profit1 49 3 52 Rest of the World trading profit1 13 - 13 Total Travel trading profit1 164 2 166 High Street trading profit1 32 11 43 Gr
Slide 50: Headline Pre-IFRS 16 to IFRS cash flow
Headline Pre-IFRS 16 IFRS 16 IFRS 16 £m 31 Aug 2023 Adjustment 31 Aug 2023 Net cash inflows from operating activities 135 116 251 Net cash outflows from investing activities (122) - (122) Net cash outflows from financing activities (87) (116) (203) Net decrease in cash in the period (74) - (74) 50
Slide 51: WHSmith Preliminary Results
WHSmith The global travel retailer Preliminary Results FOR EVERY EXO there’