Ocado Group Plc · LSE:OCDO
Ocado — FY2011 Earnings Presentation
31 slides from Ocado's earnings presentation, January 2012
Slide 1: Ocado Group plc 2011 Preliminary Results
ocado Ocado Group plc 2011 Preliminary Results 3] January 2012 www.ocadogroup.com www.ocado.com
Slide 2: Forward-Looking Statements Disclaimer
Forward-Looking Statements Disclaimer ocado This presentation contains oral and written statements that are or may be “forwarclooking 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
Slide 3: Agenda
Agenda C ocado * Financial Review — Andrew Bracey ¢ Business Review — Tim Steiner * Q&A www.ocadogroup.com 3
Slide 4: Andrew Bracey, CFO
ocado Andrew Bracey CFO www.ocadogroup.com 4
Slide 5: Highlights
Highlights ocado * Financial Highlights — Gross sales up 16.6% to £642.8m — Adjusted! EBITDA up 26.6% to £27.9m (EBITDA margin? 4.7%} — Net Assets £172.9m — Cash £92.1m, Net Debt £19.2m * Statutory Highlights — Revenue up 16.0% to £598.3m — Operating profit £1.1m compared with an operating loss in t
Slide 6: Financial summary
Financial summary C ocado sfevenil | pi feveue Gross sales 642.8 551.1 Revenue 598.3 515.7 Gross profit 184.8 161.6 30.9 31.3 EBITDA 27.9 22.0 4.7 4.3 Exceptional items 0.0 (3.5) 0.0 (0.7) creer oa) WG EBIT a (5.4) 0.2 (1.0) Interest (3.5) (6.9) (0.6) (1.3) EBT (2.4) (12.2) (0.4) (2.4) 1) Include on
Slide 7: KPIs
KPls ocado FY11 FY10 % Change Average order size (£)! 112.15 Average orders per week 110,219 CFC efficiency (units per hour)? 111 Average deliveries per van per week 145 Average product wastage (% of revenue)? 0.70 Items delivered exactly as ordered (%)4 98.3 Deliveries on time or early (%) 92.3 cha
Slide 8: FY09 FY10 FY11
643 598 551 516 427 402 FY09 FY10 FY11 FY09 FY10 FY11 93 110 116 114 112 71 FY09 FY10 FY11 FY09 FY10 FY11
Slide 9: FY09 FY10 FY11
185 162 30.6% 31.3% 30.8% 123 FY09 FY10 FY11 FY09 FY10 FY11 12.6 32.6% 33.0% 31.2% 6.2 2.6 FY09 FY10 FY11 FY09 FY10 FY11
Slide 10: Operating costs
Operating costs C FYI] FY10 FYI FYI0 | Change in (Em) ag || Se (% Revenue} | (% Revenue) |. Revere ° ° FY10-FY1 Total 196.2 169.7 15.6% (0.2) Trunking & delivery 71.9 63.4 13.3% 12.0 12.3 (0.3) CFC 55.0 47.6 15.5% 9.2 9.2 (0.1) Other operating costs 6.5 5.2 25.0% 1.1 1.0 0.1 Admi iota 36.0 29.6 21.7
Slide 11: Marketing
Marketing © ocado 8.1 8.0 7.9 6.5 5.4 4A +48% FYO9 FY10 FY1] FYO9 FY10 FY11 % Revenue 1.6% 1.6% 1.3% % Revenue 1.1% 1.0% 1.3% www.ocadogroup.com 11
Slide 12: EBITDA
4.3% 4.7% 27.9 22.0 2.3% 9.2 FY09 FY10 FY11 FY09 FY10 FY11
Slide 13: Balance sheet
Balance sheet Property, plant and equipment INon-current assets Other Total Cash and cash equivalents Current assets Other current assets Total Trade and other payables Obligations under finance leases Other current liabilities Total Obligations under finance leases INon-current liabilities Other no
Slide 14: Cashflow
Cashflow C Cashflow, £m 30 113 155 Opening Financing Operating Interest paid _ Investing Year end cash! activities activities activities cash 1) Including short term treasury deposits www.ocadogroup.com 14
Slide 15: Capital investment
Capital investment Total CAPEX CFC 1 CFC 2 Vehicles Spokes IT Other www.ocadogroup.com
Slide 16: Summary
Summary C ocado * Significant progress in growing sales in weak UK economy * Strong cash position with £92.1m cash and total undrawn facilities of £78.8m * Sales growth for Q1 expected to be around 10%, broadly in line with Q4 2011 www.ocadogroup.com 16
Slide 17: Tim Steiner, CEO
ocado Tim Steiner CEO www.ocadogroup.com 17
Slide 18: Overview
Overview ocado Highlights for Period (@eiiticeMuleli <a © Online grocery market growth continued through 2011 growth and + Estimated to reach £1 1bn* of sales by 2016 development ° Market grows as online proposition improves . + Further development of our grocery range Enhancing our offer to custome
Slide 19: Improved range, price and service move customers
Improved range, price and service © move customers ocado Channel Shift Pre 1950s local store High street chain Out of town supermarket www.ocadogroup.com
Slide 20: Ocado - developing the online grocery proposition
Ocado - developing the online rocery proposition grocery Prop ocado Online Drivers ~ * Targeting over 30,000 SKUs end 2012 - including authentic international/ethnic + Adding an additional range of non-food over the next two years * Currently price match + Freshness Tesco over 7,000 branded products
Slide 21: Partnerships and 'shop in shop'
Partnerships and ‘shop in shop’ C7 ocado We aim to offer the broadest and most diverse grocery range to our customers Reflets de France Daylesford Farm \ www.ocadogroup.com
Slide 22: Selected basket standard own brand products price comparison
• Selected basket standard own brand products (Jan 2012) Product Waitrose Tesco Sainsbury's Ocado • British Beef Stewing Steak (£/kg) 8.87 8.25 8.25 8.24 Cumberland Pork Sausages (£/kg) 4.60 4.38 4.38 4.38 • Large free range eggs (£/Each) 0.27 0.24 0.24 0.24 Smoked Salmon (£/kg) 39.90 34.90 33.33 33
Slide 23: Ocado is increasingly price competitive
Ocado is increasingly price competitive
Slide 24: Ocado Saving Pass - at least 10% off over leading branded lines
Ocado Saving Pass — at least 10% off over 600 leading branded lines ocado Ocado Saving Pass * In return for a small annual fee, Discounts on Ocado Saving Pass holders are : your favourite offered discounts of at least 10% ee off a range of over 600 leading branded products (in addition to any Tesco
Slide 25: One-Click Additions and technology developments
• One-Click Additions • Ocado bespoke SatNav, van tracking and routing • Now available on iOS (for iPhone, iPad), Android, technology Windows Phone 7 and Blackberry platforms • Improved cubing algorithm improves tote fill and reduces product damage • 3D Simulation & Live monitoring of the CFC • Rela
Slide 26: OSR, ASRS, Ambient zone pick
OSR 2 ASRS Ambient zone pick
Slide 27: CFC2 continues on budget and on time
CFC2 continues on budget and on time C ocado CFC2 Overview ¢ Land purchased in March 2011 * Building, services and ancillary infrastructure substantially complete * MHE installation started and advancing well * End to end system testing from mid-2012 * Golive planned for Q1 2013 * £72.6m capital spe
Slide 28: Capacity and delivery development
Capacity and delivery development C ocado ws Se ea 28 www.ocadogroup.com
Slide 29: Voted favourite online supermarket 2011
Voted favourite online supermarket 2011
Slide 30: Source: IGD September 2011
• • • • • • * Source: IGD September 2011
Slide 31: Q&A
ocado Q&A www.ocadogroup.com 31