Ao World Plc · LSE:AO.
Ao World — FY2026 Earnings Presentation
26 slides from Ao World's earnings presentation, June 2026
Slide 1: FY26 Full Year Results
FY26 Full Year Results John Roberts, Founder and CEO Mark Higgins, Group CFO and COO
Slide 2: Contents
Contents 01 Welcome Mark Higgins 02 Financial & Operational Performance Mark Higgins 03 Strategic Update John Roberts 04 Summary John Roberts 05 Questions 4
Slide 3: Welcome
Welcome Mark Higgins, Group CFO and COO
Slide 4: Financial & Operational Performance
Financial & Operational Performance Mark Higgins, Group CFO and COO
Slide 5: FY26 – A year of delivery
FY26 – A year of delivery Group revenue Adjusted PBT Free cashflow £1,266.6m £50.5m £66.4m +11.4% YoY +16.1% YoY >2.5x YoY Cash balance Total liquidity Net funds £81.3m > £200m £16.4m + £53.9m YoY From £35.9m net debt 7
Slide 6: Delivered against guidance
Delivered against guidance Commitment Outcome PBT of £40 – 50m £50.5m – top end of range Conversion of profit to cash £66.4m free cash flow Absorb c.£8.5m of group NI/NLW Absorbed in full labour cost Fix or close mobile Fixed – contributing profitably Exit run-rate profitable on an musicMagpie to pr
Slide 7: Strong revenue growth
Strong revenue growth Buybacks Group revenue New customers Growing Share (target IRR >8%) and special dividends £1,266.6 c. 720k MDA 17.1% (+6.8%) SDA & AV outpacing +11.4% YoY FY25: c. 650k MDA Revenue by segment (£m) Segment FY26 FY25 Change Commentary B2C Retail 911.0 831.9 +9.5% Share driven; MD
Slide 8: Profit growing faster than sales
Profit growing faster than sales Gross profit Gross margin % £316.1m 25.0% +14.5% YoY +0.7ppt YoY Drivers Partial offsets • Mobile pivot to profit • Logistics labour inflation • mM FY at higher • Recycling commodity margin mix prices • Core retail margin up off-setting lower ASPs 10
Slide 9: Costs — inflation absorbed, self-help delivering
Costs — inflation absorbed, self-help delivering Inflation Absorbed: c. £8.5m of group cost absorbed from April NI and NLW changes – and PBT still delivered at the top end of the range. SG&A – drivers of YoY change Line FY26 YoY Commentary Advertising & Marketing £53.5m +£9.1m Magpie £3.5m | PPC £8.
Slide 10: Solid, scaled operational foundations
Solid, scaled operational foundations Our operation • Next day delivery 7 days a week • 7 warehouses totalling 2m1 sq ft • 17 last mile depots • c. 800 home delivery vans xxx • 260 trailers • 2 recycling plants • 1.26m MDA units recycled – total of 10m to date 1 – As at June 2026 12
Slide 11: Strong, resilient and flexible balance sheet
Strong, resilient and flexible balance sheet Free cashflow Cashflow from op activity Net working capital £66.4m £95.7m £46.8m FY25: £26.3m FY25: £58m FY25: £66.6m Cash balance Total liquidity Net debt -> Net funds £81.3m > £200m + £52.3m + £53.9m YoY £(35.9)m -> £16.4m 13
Slide 12: Capital allocation and shareholder returns
Capital allocation and shareholder returns Invest for growth – above Buybacks Surplus capital to Balance sheet first cost of capital only shareholders (target IRR >8%) and special dividends Strong, resilient, flexible. Logistics, technology, Buybacks and special No fixed leverage target infrastructu
Slide 13: FY27 Outlook
FY27 Outlook Working for us in FY27 Absorbing in FY27 Continued share gain in core retail Continued labour cost inflation Stepped-up ERP and infrastructure Full year of mobile profitability investment Full year of musicMagpie profitability Fleet refresh (c. 360 more vehicles) with synergies still ah
Slide 14: Strategic Update
Strategic Update John Roberts, Founder and CEO
Slide 15: The flywheel – scaled economies shared
The flywheel – scaled economies shared 17
Slide 16: Hard to replicate moats
Hard to replicate moats Customer trust Operational excellence Brand relationships 1m+ Trustpilot reviews at Two-man delivery at Direct supply from global 4.9/5 — a world first. scale: world-class service, brands across all MDA lowest cost. and non-MDA categories Employee engagement score of 80 18
Slide 17: AO Membership
AO Membership The compounding engine. • Every key metric improving • More frequent, more categories, greater share of wallet • Cheaper to retain than to acquire 19
Slide 18: musicMagpie
musicMagpie Loss making to run rate profitable on an annualised basis • Timpson trade-in: instant cash at over 1,300 locations • Trade-in lowers cost, lifts conversion, deepens membership 20
Slide 19: Mobile – a turnaround story
Mobile – a turnaround story Fixed, and now profitable. • Faced reality early with O2, Three and Vodafone • Enters the new year contributing profit 21
Slide 20: Switch24 and AO Mobile
Switch24 and AO Mobile The proposition we always intended. • Switch24: pay only for handset depreciation, a new phone every 24 months. • Paired with AO Mobile: £29/month for the latest iPhone with all-you-can-eat data. • Scaled economics shared — when members need it most. 22
Slide 21: AI automation and the external environment
AI automation and the external environment Costs rising. Technology cheaper and better. • Capture AI efficiency wins today • Reimagine the business from first principles • Offshoring delivering — service never compromised 23
Slide 22: Robotics and automation
Robotics and automation Our solution would provide: • More efficiency and more capacity • Flexible, relatively low capex software driven solution • Has application across multiple formats and product types 26 Example robotics in AO Warehouse
Slide 23: Summary
Summary John Roberts, Founder and CEO
Slide 24: Questions
Questions
Slide 25: Forward–looking statements disclaimer
Forward–looking statements disclaimer This presentation contains oral and written statements that are, or may be, “forward-looking statements” with respect to certain of AO World PLC’s (“AO” or "Company") plans and its current goals and expectations relating to its future financial condition, perfor
Slide 26: Thank you!
Thank you! 30