Boohoo Group Plc · LSE:DEBS
Boohoo — boohoo.com — FY2015 Earnings Presentation
22 slides from Boohoo's earnings presentation, May 6, 2015
Slide 1: Final Results for the Year Ended 28 February 2015
FINAL RESULT S FOR THE YEAR ENDED 28 FEBRUARY 2015 Wednesday, 6th May 2015
Slide 2: 2014/15 Highlights
2014/15 HIGHLIGHTS þ Warehouse capacity þ Four further currency options increased for Scandinavian customers þ Warehouse extension þ Cohesive marketing þ WMS system implemented campaigns - þ Responsive website design #experienceeverything, #wherewestand, #weareus þ Australia turnaround þ New
Slide 3: Neil Catto, CFO
NEIL CAT T O CFO 3
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS q Revenue up 27% to £139.9m (2014 £109.8m) q UK growth 33% year on year q Return to growth in rest of the world region q Underlying EBITDA £14.1m (10.1% of sales) q Gross margin at 60.8% q Warehouse capacity increased q Significant IT developments – foreign language sites
Slide 5: Summary Income Statement
SUMMARY INCOME STATEMENT Year ended 28 February (£m) 2015 2014 Change q Gross margin Revenue 139.9 109.8 +27% increase due to Gross profit 85.0 64.9 +31% change in Gross margin 60.8% 59.1% +170bps sourcing model Operating profit 10.6 10.8 -2% q Operating profit EBITDA (adjusted) 14.1 12.2 +16% mar
Slide 6: Calculation of Adjusted EBITDA
CALCULATION OF ADJUSTED EBITDA Year ended 28 February (£m) 2015 2014 Change 2014 Change actual actual pro forma Operating profit 10.6 10.8 -2% 14.7 -28% Exceptional IPO costs 1.2 0.4 +234% 0.4 +234% Operating profit before 11.8 11.2 +6% 15.1 -21% exceptional items Depreciation and amortisation 2.0 1
Slide 7: International
INTERNATIONAL Sales by geographic segment £m Year ended 28 Year ended 28 Change CER February 2015 February 2014 UK 94.4 71.0 +33% +33% Rest of Europe 18.1 13.1 +39% +47% Rest of world 27.4 25.7 +7% +16% Total revenue 139.9 109.8 +27% +31% 72.6 q Strong growth globally 67.2 58.4 51.4 23.9 q Europe
Slide 8: Operating Costs
OPERATING COSTS Year ended 28 2015 2014 Change February, £m 53.4% 51.0% 50.1% 48.6% Marketing 18.5 15.3 +21% Distribution 30.7 24.3 +26% 17.1% 15.4% 11.5% 16.9% Other admin 23.7 14.6 +63% TOTAL 72.9 54.2 +35% 20.9% 23.1% 21.8% Year ended 28 2015 2014 Change 22.1% February, % revenue Marketing 13.2%
Slide 9: Operating Cash Flow
OPERATING CASH FLOW Year ended 28th February, £m 2015 2014 q Efficient conversion of EBITDA to cash Profit for the year 8.4 8.4 q Inventory tightly controlled Depreciation/amortisation 2.0 1.0 q Working capital inflow of £1.2m Share-based payment charges 0.3 - (0.9% of sales) from stock/ Tax expe
Slide 10: Balance Sheet
BALANCE SHEET At 28 February, £m 2015 2014 q IPO proceeds of £47.5m (net of Assets transaction related costs) Intangible assets 4.6 3.1 received after the balance sheet date Property, plant and equipment 10.9 6.2 q Investments in warehouse and Deferred tax 0.1 - IT (WMS system) Non-current assets
Slide 11: KPIs
KPIS MONT HLY SESSIONS (MILLIONS) 5.0% AND CONVERSION RAT E2 18 Indicator 2015 2014 Change 4.5% 16 4.0% 14 Active customers1 3.0m 2.3m +29% 3.5% 12 3.0% Number of orders 5.8m 4.2m +36% 10 2.5% 8 Conversion rate2 3.6% 3.3% +30bps 2.0% 1.5% 6 Average order value3 £35.28 £36.59 -4% 1.0% 4 Number of ite
Slide 12: Capital Expenditure by Year
CAPEX CAPITAL EXPENDIT URE BY YEAR q Warehouse extension complete May 2015 – 13.0 expenditure in 2014/15 was 1.5 £4.7m, £2.5m less than plan – this expenditure will fall into 2.5 2015/16 8.2 q Fit out begins June 2015 Other q Capex guidance for 2015/16 3.1 IT - £13.0m including final costs 4.5 Wa
Slide 13: Carol Kane, Joint CEO
CAROL KANE JOINT CEO
Slide 14: Our Fashion: Range Extension
OUR FASHION Range extension q Plus, Petite, Fit, 14
Slide 15: Our Fashion: Shops within Shops
OUR FASHION Shops within shops q Night, Blue, Dare to Flare, Basics 15
Slide 16: Our Market Share - UK
OUR MARKET SHARE - UK 2.9% UK HITWISE MARKET SHARE OF VISIT ORS Top 5 – 4th April 2015 2.7% 1 Next 6.68% 2.5% 2 ASOS 6.25% 2.3% 3 New Look 4.34% 2.1% 4 boohoo.com 2.78% 1.9% 5 George at Asda 2.59% 1.7% 1.5% 1.3% 1.1% 0.9% 12-Jan-13 12-May-13 12-Jan-14 12-May-14 12-Jan-15 12-Nov-13 12-Nov-14 12-Mar-1
Slide 17: Our Market Share - AUS
OUR MARKET SHARE - AUS AUS HITWISE MARKET SHARE OF VISIT ORS Top 5 – 4th April 2015 2.5% 1 ASOS 4.45% 2.0% 2 The Iconic 3.97% 1.5% 3 Ozsale.com.au 3.46% 4 Cotton On 2.37% 1.0% 5 boohoo.com 1.68% 0.5% 0.0% 04-Jan-14 04-Jul-14 04-Nov-14 04-Apr-14 04-Mar-14 04-Dec-14 04-Jun-14 04-Aug-14 04-Oct-14 04-Se
Slide 18: Mobile Engagement
MOBILE ENGAGEMENT SESSIONS BY DE VICE T YPE BY MONT H 4.0% MOBILE CONVERSION BY MONT H 3.5% 3.0% DESKT OP 2.5% TABLET 2.0% MOBILE 1.5% 1.0% SESSION MIX (%) BY DE VICE T YPE BY MONT H q Responsive site implemented DESKT OP September 2014 50% TABLET q Conversion improvement MOBILE q Proportion of m
Slide 19: Social Engagement: Don't Be Fooled
SOCIAL ENGAGEMENT DON’T BE FOOLED BY NUMBER OF LIKES OR FANS - ENGAGEMENT IS WHAT COUNTS! boohoo ASOS New Look Topshop Next Facebook fans 2.1m 3.5m 3.0m 3.9m 1.4m Facebook engagement % 0.206% 0.011% 0.003% 0.007% 0.086% Instagram fans 0.8m 2.7m 0.6m 4.0m 0.1m Instagram post engagement 1.7% 1.2% 2.0%
Slide 20: Social Engagement: Our Brand Advocates
SOCIAL ENGAGEMENT OUR BRAND ADVOCAT ES Zoella MarziaPie Carli Bybel 8m Youtube subscribers 5m Youtube subscribers 2.7m YouTube subscribers 3m Instagram followers 2.2m Instagram followers 1.8m Instagram followers 20
Slide 21: Highlights Video
HIGHLIGHT S VIDEO
Slide 22: Summary
SUMMARY q 2014/15 – a year of progress and investment q SS15 marketing campaigns seeing a good response q UK momentum recovering in the new financial year q Continued momentum internationally with focus on key markets q Focus on execution 22