Ocado Group Plc · LSE:OCDO

Ocado — H1 2021 Earnings Presentation

34 slides from Ocado's earnings presentation, Jul 6, 2021

Slide 2: Forward-looking statements
Forward-looking statements DISCLAIMER This presentation contains oral and written statements that are or may be “forward-looking statements” with respect to certain of Ocado’s plans and its current goals and expectations relating to its future financial condition, performance and results. These forw
Slide 4: A conversation about the state of the online grocery market
A conversation about the state of the online grocery market Tim Steiner, CEO Stephen Daintith, CFO ©Ocado Group plc. All rights reserved.
Slide 6: First impression and priorities
First impression and priorities Strong culture drives opportunity Priorities to support sustained strong growth Startup culture OSP economics passion - resilience - flat hierarchy - creative problem solving - focus on Capital allocation efficiency Balance sheet Growing opportunity set Evolution of G
Slide 7: Financial Summary
Financial Summary £ million H1 2021 H1 2020 Change Revenue1 1,319.9 1,086.8 21.4% EBITDA 61.0 19.8 +41.2m Loss before tax (23.6) (40.6) (41.9%) • Impressive revenue growth (+21.4%) driven by Retail • Strong EBITDA performance as industry leading margin performance in Retail and efficiency improvemen
Slide 8: Ocado Retail: strong revenue and margin performance drive material EBITDA growth
Ocado Retail: strong revenue and margin performance drive material EBITDA growth Orders driving revenue growth, with basket size and ASP broadly flat Changes £ million H1 2021 H1 2020 Change Average Q1 Q2 H1 Revenue 1,224.1 1,021.6 19.8% OPW (000s) +3% +40% +20% Basket size (£) +32% -23% - EBITDA1 1
Slide 9: Ocado retail: a closer look at operating performance
Ocado retail: a closer look at operating performance change % revenue 1H21 1H20 (bps) Commercial sourcing benefits see retention of Gross margin (incl. media) 36.0% 32.0% 401 much of benefit from end of Waitrose sourcing fee Trunking and delivery costs (10.0)% (11.1)% 108 Drops per van per week (DPV
Slide 10: UK Solutions & Logistics: progress reflects client capacity growth
UK Solutions & Logistics: progress reflects client capacity growth £ million H1 2021 H1 2020 Change Fee revenue 73.2 56.0 30.7% Cost recharges 284.1 260.0 9.3% Revenue 357.3 316.0 13.1% EBITDA 30.1 23.7 +6.4m • Strong fee growth as peak OPW to 510,00 in April, with ramp of Erith and the opening of t
Slide 11: International Solutions: starting to recognise material revenue
International Solutions: starting to recognise material revenue £ million H1 2021 H1 2020 Change Fees invoiced 50.2 73.7 (31.9%) Revenue 26.6 1.6 n.m EBITDA (56.6) (39.7) (16.9)m • Revenue includes £19m of OSP fee revenue recognised from partners with CFCs ramping in France and Canada, and the go-li
Slide 12: Scaling up and investing to support our growth ambitions
Scaling up and investing to support our growth ambitions Investing to seize the Step up in capex as OSP roll out picks up globally enhanced opportunity in online grocery 3 CFCs launched in 1H21, with 18 sites in build globally Significant investments to improve OSP for partners Fulfilment £317m1 Han
Slide 13: Strong cash position supports our significant growth plans
Strong cash position supports our significant growth plans £1.7bn: enough liquidity to meet existing commitments and deliver future growth for the short to medium term Positive operating cash flow Investing for growth 2,0771 348 (297) 61 58 (32) 6 (196) 1,707 3 1,658 Strong performance in Draw down
Slide 14: Outlook for FY21: update to FY20 guidance
Outlook for FY21: update to FY20 guidance Update to FY20 guidance • Though uncertainties remain regarding the performance of Ocado Retail in H2 as COVID restrictions continue to ease, we are encouraged by performance in Q2 which shows a strong increase in customer transactions offsetting the normali
Slide 15: Outlook for 2021: update to build on prior FY20 guidance
Outlook for 2021: update to build on prior FY20 guidance FY20 guidance • Revenue growth: • Retail highly dependent on COVID restrictions. New capacity ramp up over the course of the year from 3 new UK CFCs • UK Solutions & Logistics double digit growth • International Solutions fees from OSP partner
Slide 17: High demand for online remains: new customer wins driving growth
High demand for online remains: new customer wins driving growth Strong new customer growth drives revenue Customer growth reflects strong growth as basket size starts to normalise demand for online and Ocado.com Quarterly shift from growth in basket size to Demand provides long runway for future gr
Slide 18: Seamless ecosystem serves the widest range of missions online
Seamless ecosystem serves the widest range of missions online With OSP, Ocado Retail serves more customer missions than other models With a leading customer offer Serving the full range of proven large basket Building on longstanding and top up missions in the UK grocery market leading customer prop
Slide 19: Ambitious capacity roll out planned to meet strong demand
Ambitious capacity roll out planned to meet strong demand Roll out of c50% more growth capacity FY20 through FY22; plans for more in FY23 and beyond 600k 630k 450k CFCs 1, 2, 4, 5 CFCs 3 and CFC 7 planned at capacity for 6 to go live in 3Q for 1H22 Ocado Retail and 4Q 1H21 - FY21 - FY22 - Operating
Slide 21: Setting new benchmarks for speed: Bristol CFC in the UK
Setting new benchmarks for speed: Bristol CFC in the UK From announcement to go-live in 15 months, and now setting new benchmarks for speed of ramp up Trend lines showing ramp up of success robotic CFC sites evidence progress with Bristol ramp up 30 Erith (CFC4) Andover (CFC3) Orders per week (000s)
Slide 22: Deploying new learnings to improve speed to market internationally
Deploying new learnings to improve speed to market internationally Significantly improving speed to go-live through practical changes in our MHE installation process New method of aligning Bi-directional grid build grid and peripheral build a parallel process for faster execution decouples the two t
Slide 24: Andover: a testament to the resilience of the business
Andover: a testament to the resilience of the business Feb 2019 Andover fire created Teams responded at speed to preserve service levels and flex to new an unprecedented challenge operating levels across the remaining network, with incredible results A sudden loss of significant operating and growth
Slide 25: Andover (CFC3) rebuild to go-live at the end of August
Andover (CFC3) rebuild to go-live [at the end of] August A new, state-of-the-art, site 3Q21 First outbound orders 60k orders per week capacity at maturity 150 colleagues employed at the previous site returning to the new facility ©2021 Ocado Group plc. All rights reserved.
Slide 26: Best in class site incorporates learnings of the last five years
Best in class site incorporates learnings of the last five years Driving better outcomes The newest technology... with optimised operations compared with the original site ‘3rd generation’ Improved layout 500 series bot Better internal and Modular build with fewer, external process flow interchangea
Slide 28: 7 partners now live on the Ocado Smart Platform (OSP)
7 partners now live on the Ocado Smart Platform (OSP) 1H21: the pace of OSP roll out is picking up 7 of 10 partners now live on OSP Go-live of 3 automated CFCs, with sites now live in 4 partner markets globally Kroger (US) launched CFC 1 and 2 Ocado Retail (UK) launched CFC 5 Sobeys (Canada) ramping
Slide 29: A resilient online platform that grows with partner needs
A resilient online platform that grows with partner needs Continuing to scale software Delivering differentiation and So partners can lead in the fast capabilities available to partners resilience across the platform growing online grocery channel Accelerating ramp of delivery of software capabiliti
Slide 30: Facilitating shared learnings between OSP partners
Facilitating shared learnings between OSP partners Deliberate framework to leverage end-to-end learnings in online grocery Bringing together key sponsors and leaders Assembling key representatives to engage on the core themes and touchpoints of the online grocery value chain Forums for, and chaired
Slide 32: Meeting a significant and permanent shift to the online channel
Meeting a significant and permanent shift to the online channel Accelerating the roll out of OSP around the world with our partners 56 8 Confident we can scale with excellent execution despite the complexities of online grocery 5 General 4 volume, multiple temperatures, 3 19 fragility of goods 10 Ma
Slide 33: Scaling at speed and with confidence: the power of simulation
Scaling at speed and with confidence: the power of simulation Using simulation to de-risk complex builds and optimise performance across the end-to-end platform Creating ‘true’ digital twin 1 2 3 4 Build a virtual double Test thousands of Apply advanced When asset built, feed of a physical asset, re
Slide 34: An increasing competitive advantage for partners as we scale
An increasing competitive advantage for partners as we scale Increasing our data set and knowledge even further, so that we can achieve ever better performance at the lowest cost for our partners Proprietary solutions Accelerating OSP in advanced Unique roll out brings more simulation opportunities

Ocado Group — H1 2021 Earnings Presentation on 6ix

Ocado — H1 2021 Earnings Presentation

Slide 1: 1H21 Results Presentation

Slide 2: Forward-looking statements

Slide 3: The Chairman's Overview

Slide 4: A conversation about the state of the online grocery market

Slide 5: Financial Review

Slide 6: First impression and priorities

Slide 7: Financial Summary

Slide 8: Ocado Retail: strong revenue and margin performance drive material EBITDA growth

Slide 9: Ocado retail: a closer look at operating performance

Slide 10: UK Solutions & Logistics: progress reflects client capacity growth

Slide 11: International Solutions: starting to recognise material revenue

Slide 12: Scaling up and investing to support our growth ambitions

Slide 13: Strong cash position supports our significant growth plans

Slide 14: Outlook for FY21: update to FY20 guidance

Slide 15: Outlook for 2021: update to build on prior FY20 guidance

Slide 16: Leadership

Slide 17: High demand for online remains: new customer wins driving growth

Slide 18: Seamless ecosystem serves the widest range of missions online

Slide 19: Ambitious capacity roll out planned to meet strong demand

Slide 20: Speed

Slide 21: Setting new benchmarks for speed: Bristol CFC in the UK

Slide 22: Deploying new learnings to improve speed to market internationally

Slide 23: Resilience

Slide 24: Andover: a testament to the resilience of the business

Slide 25: Andover (CFC3) rebuild to go-live at the end of August

Slide 26: Best in class site incorporates learnings of the last five years

Slide 27: Partnership

Slide 28: 7 partners now live on the Ocado Smart Platform (OSP)

Slide 29: A resilient online platform that grows with partner needs

Slide 30: Facilitating shared learnings between OSP partners

Slide 31: Problem Solving

Slide 32: Meeting a significant and permanent shift to the online channel

Slide 33: Scaling at speed and with confidence: the power of simulation

Slide 34: An increasing competitive advantage for partners as we scale