Presentation (fy25 results analyst presenation website pdf)

FY25 Analyst Presentation

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1. Our opportunity

Our opportunity

Most inspirational destination for fashion lovers

Profitable, flexible and resilient business model

Relevant fashion

product

1

Inspirational

shopping

2

Efficient operating

model

3

Offer a unique assortment of brands to curate outfits customers love

Provide customers with an increasingly engaging & personalised journey

Maintain operational discipline and re-invest to improve customer experience

4

5

3

Our journey

1

2

Addressing legacy issues

Building the new commercial model

Re-engaging customers

Our journey 6

2

3

Dealing with the legacy of the old model

1

Addressing legacy issues

Building the new commercial model

Re-engaging customers

We have addressed our legacy issues

Inventory down >60% vs. FY22 (£1.1bn to £400m), leading to less markdown activity and more newness

Reduced our warehouse footprint by >50% vs. FY21, including the optimisation of our US operations

Improved balance sheet flexibility through c.40% net debt reduction since FY23 and refinancing actions

to successfully reset the essential foundations of our business

Our journey 8

2

3

Building the new commercial model based on speed, agility and profitability

1

Addressing legacy issues

Building the new commercial model

Re-engaging customers

Building a new commercial model: Better product for our customers

Ensure we are

first for fashion

More flexibility and availability for our Partner Brands

Improving product breadth to enable curation of exclusive outfits

• Production times reduced by up to 30% YoY on all Own Brands

• T&R >20% of Own Brand sales

• Deepened relationships with existing partners

• FF >10% of Partner Brands GMV

• Sharpened our brand portfolio

• Added c.100 new Partner Brands

• Offer exclusive products with

c.40 brands

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Inventory Cover (Weeks)

>20% improvement in stock turn over the last two years

10

Building a new commercial model: Rigorous inventory management

New commercial model sets systematic targets for ROI throughout the lifetime of our fashion products

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Aug

Improved speed to market

Flexible Fulfilment models

Effective in-season sell-through

ROI

=

Sell through

-

Markdown

Improved stock health and profitability

Building a new commercial model: More efficient operations

Structurally improved gross margin

Opex efficiencies

Better profitability

Gross margin +370bps YoY

Higher full-price mix and structurally lower reliance on markdown

Scaled Flexible Fulfilment models

Supply chain costs down c.20% YoY

Distribution and warehouse cost to serve down c.3ppts vs FY23

c.150bps reduction in underlying returns rate

Adj. EBITDA +60% YoY

Profit per order +30% YoY

Actions in H2 FY25 to deliver significant annualised cost savings in FY26

Our Journey 12

Re-engaging consumers with the most relevant product and inspirational shopping experience

1 2 3

Addressing legacy issues

Building the new commercial model

Re-engaging consumers

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We have a plan to re-engage consumers at scale

Double down our offer of the most exciting and relevant product

• Scaling our speed models

  • FF platform expansion

  • Exclusive collaborations

Invest in the ASOS brand with ROI-driven marketing

• Relaunch of the ASOS brand

• Increased brand marketing

• More IRL touchpoints

  Reinvent our shopping experience

  • App revamp

• Inspiration and engagement

  • Outfit based experience

    • Ultra-personalisation

      Confident in returning to sustainably profitable GMV growth

      
      
      

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      Re-engaging consumers at scale: Double down on the most relevant product

      In FY26 we will…

      Continue to scale our speed and flexibility

      • Scale T&R to >25% of own brand sales

      • Scale FF to >15% of third-party GMV

      • Continue accelerating our time to market

        Elevate our quality

      • Invest to improve our quality via materials and fit

      • Launch and expand ASOS Collective, Arrange, BreatheMax etc.

      • Double down on the sustainable materials roadmap

        Sharpen our brand portfolio

      • Increase number of bold collaborations e.g. adidas collections

      • Build out our exclusive and premium assortment

      • Establish a monthly edit of best own and partner brand products

x

COLLECTION 02

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Re-engaging consumers at scale: There has never been a better time to drive consumers to ASOS

Why invest in marketing now?

What are the priorities?

Why are we confident?

We have got the foundations in place

• We offer relevant, fashion-first products at speed

• Our economics are healthy e.g. 30% increase in PPO

• Our marketing is more efficient, with ROAS uplift in FY25

Driving brand consideration

• Continue maximising ROAS in performance marketing

• Increase investment through frequency, breadth and quality of brand actions (pop-ups, IRL, campaigns, social)

  We are already seeing positive results

• UK new customers c.+10% YoY YTD, and growth in FY25 in average spend

• Retention rate improvement in FY25, particularly amongst our most profitable consumers

• Our pop-ups generating GMV uplift from halo effect

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Re-engaging consumers at scale: The most inspirational experience

and we are determined to make it more special

Outfits

Engagement

Our vision

Personalisation

Powered by AI

Step-change in consumer experience:

Using AI to bring customers a personal stylist in their pocket

Transforming online fashion:

Growing opportunities for the online channel to revolutionise the consumer journey

• Always in • Focus on • Adapted to each context inspirational consumer 1 :1 (1 :1

• Always real life shopping outfits, 1 :1 product outifits • Video, Live selection)

content • AI Stylist

• Loyalty

Empowering our people:

Driving time and cost efficiencies, allowing our people to focus on

re-engaging customers e.g. 75-80% time saving on design workflows

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Re-engaging consumers at scale:

We have recently started the journey

ASOS.WORLD

• Successfully launched in UK with experience-based benefits

• Reached >1m members within 6 months

• Increased shopping frequency and a reduction in paid marketing

  ASOS Live

• Launched live and on-demand video shopping platform

• c.50% click-through rate to view product

• Live-viewers browse longer and with higher conversion rates than non-viewers

  Topshop.com

• Staged a major relaunch of the iconic brand

• Majority of sales from non-ASOS customers

• Consistently stronger ABV versus other channels

  ASOS.WORLD ASOS LIVE Topshop.com

  Re-engaging consumers at scale: What's to come

  Outfit-based shopping

  • Outfit generator

  • AI-powered flat-lay images

  • Save outfits, share looks and collaborate on boards

    
    
    

    Re-engaging consumers at scale: What's to come

    Immersive & Engaging

  • Shoppable reels

  • Video led experience across product detail, search and home pages

  • Search by trends and occasion

  • Loyalty programme expansion

  • Influencer and community integration

    
    
    

    Re-engaging consumers at scale: What's to come

    Personalised for you

  • 'For you' tab

  • AI Stylist

  • Follow brands

  • Discovery feed

Coming in FY26

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We are ready to go all in on the last step of our journey

1

2

Addressing legacy issues

3

Building the new commercial model

Re-engaging customers

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3. FY25 Financial Results

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FY performance reflects further profit improvements

40.7%

(130bps)

2,896.0

(14%)

2,817.8

2,456.3

42.0%

(12%)

2,464.8

+51.5

131.6

80.1

FY24 FY25

FY24 FY25

FY24 FY25

FY24 FY25

FY24 FY25

+112.4

(184.7)

(23.6)

37.7

14.1

(297.1)

FY24 FY25

1 Gross Merchandise Value ('GMV'): Adjusted retail sales plus revenue attributable to Flexible Fulfilment partners, net of returns and excluding sales tax. The growth rate is on a Like-for-like ('LFL') basis i.e. adjusted for the impact of foreign exchange translation and adjusting items.

2 Excluding adjusting items. Please see RNS for full breakdown.

3 Adjusted cost to serve defined as operating costs (excluding depreciation, amortisation, impairments and adjusting items) as a percentage of adjusted revenue.

4 Free cash flow is net cash generated from operating activities, less payments to acquire intangible and tangible assets, payment of the principal portion of lease liabilities and net finance expenses.

5 Net debt is cash and cash equivalents less the carrying amount of any borrowings (including accrued interest) but excluding outstanding lease liabilities.

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Profit actions driving variation in segmental performance

Consumer backdrop remained cautious but performance has been more resilient than other segments.

UK

Varied performance by country, reflecting consumer demand, competition and profit measures.

EU

Change in distribution has led to better profitability and increased breadth of product for consumers

US in H2.

RoW

Segment primarily represents non-core countries with wide-ranging profit actions.

1 Gross Merchandise Value ('GMV'): Adjusted retail sales plus revenue attributable to Flexible Fulfilment partners, net of returns and excluding sales tax. The growth rate is on a Like-for-like ('LFL') basis i.e. adjusted for the impact of foreign exchange translation and adjusting items.

2Total revenue include retail sales and income from other services excluding adjusting items. Please see RNS for full breakdown, LFL sales are also adjusted for the impact of foreign exchange translation.

3 Calculated as total shipped orders divided by total visits.

4 Average Basket Value is calculated as GMV divided by total shipped orders. LFL ABV is also adjusted for the impact of foreign exchange translation.

5Total shipped orders are the combined total of Asos and Flexible Fulfilment orders.

6Active customers defined as having shopped in the last 12 months. These include the Flexible Fulfilment unique active customers.

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Gross margin improvement driven by lower markdown, higher full-price sales mix

47.1%

New commercial model

43.4%

Improvement driven by lower discounting, higher full-price sales mix

New revenue streams

Impact of Flexible Fulfilment models (PF, AFS), and AMG

FY24 Adj.

Gross Margin

New Commercial Model

New Revenue Streams

Other FY25 Adj.

Gross Margin

Other

Impact of FX, freight and duty

1 Excluding adjusting items. Please see RNS for full breakdown

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Cost to serve improvements in supply chain offset by deleverage in other costs

(12%)

351

352

168

191

255

311

262

326

FY24 FY25

Other Marketing Warehouse Distribution

1 Excluding adjusting items. Please see RNS for full breakdown

2Adjusted cost to serve defined as operating costs (excluding depreciation, amortisation, impairments and adjusting items) as a percentage of adjusted revenue

Significant adj. EBITDA improvement driven by gross margin and C2S

132

80

FY24 Volume Gross Margin Variable C2S Fixed C2S FY25

1 Excluding adjusting items. Please see RNS for full breakdown.

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29

FY25 free cash inflow ahead of broadly neutral guidance driven by profitability and inventory

Strong profitability improvement

Adj. EBITDA +60% YoY

110

(86)

(33)

(19)

14

(23)

132

(67)

Inventory movement

Smaller benefit YoY as we annualise stock health actions and intake normalises

Adjusted EBITDA

Inventory Other working capital

Capex Net interest

Cash impacting adjusting items

Other Free cash flow

Disciplined investment

Capital additions down YoY

1 Free cash flow is net cash generated from operating activities, less payments to acquire intangible and tangible assets, payment of the principal portion of lease liabilities and net finance expenses.

Successful refinancing to significantly strengthen balance sheet

Materially improved financial terms

£150m term loan and £87.5m delayed draw term loan Extended 5-year term to 2030

Increased liquidity headroom

Additional £87.5m of effective liquidity headroom Flexibility to embark on final phase of journey

Interest costs reduced

ost

c.£5m LFL reduction in annual cash interest costs Reflects enhanced profitability and strategic progress

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