Ao World Plc · LSE:AO.

Ao World — FY2024 Earnings Presentation

19 slides from Ao World's earnings presentation, Jun 26, 2024

  1. Slide 1: FY24 Full Year Results

    FY24 Full Year Results John Roberts, Founder and CEO Mark Higgins, Group CFO 26th June 2024 © 2024 AO World All Rights Reserved

  2. Slide 2: 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

  3. Slide 3: Contents

    Contents • Welcome • Financial Performance • Strategic update • Summary • Questions 3

  4. Slide 4: Welcome

    Welcome Mark Higgins Group CFO 4

  5. Slide 5: Financial Performance

    Financial Performance Mark Higgins Group CFO 5

  6. Slide 6: FY24 Financial Summary

    FY24 Financial Summary • Adjusted PBT £34m (3.3% of revenue) • Strong Gross Margins 23.4% • Increase in net funds £34m (FY23: £4m) • EPS at 4.29p (FY23: 1.13p) • Revenue £1,039m 6

  7. Slide 7: Revenue Highlights

    Revenue Highlights • Pivot to profit produced expected impact to revenue • 15% share of the total MDA market • Annualisation of delivery charges • Contract Mobile Market 14% down YoY Market share data source - GFK 7

  8. Slide 8: Gross Margin

    Gross Margin • Compounding benefits of: • Range rationalisation • Removal of discount codes • Delivery charging 8

  9. Slide 9: SG&A costs

    SG&A costs • YoY saving of £19m; 2 YoY saving of £65m • Marketing investment focused on brand and away from direct acquisition • Continued control of spend • Remaining focused on efficiency in warehousing costs • Investment in ERP systems Certain financial data have been rounded. As a result of this

  10. Slide 10: Adjusted PBT continuing operations

    Adjusted PBT continuing operations • PBT at 3.3% • Cost structure appropriate for ongoing business • Still opportunities for further efficiencies • Now operationally geared for growth with little further overhead anticipated 10 Adjusted PBT is defined as a profit/(loss) before tax. adjusted for any

  11. Slide 11: Cashflow

    Cashflow • Efficient management of working capital • Capex spend of £8m including • £3.5m on the purchase of recycling site • £2.4m for the acquisition of affordablemobiles.co.uk and buymobiles.net. • £80m Revolving Credit Facility extended to April 2027 11

  12. Slide 12: FY25 Financial outlook

    FY25 Financial outlook • Return to profitable growth • Guidance FY25 • Group Adj. PBT £36m to £41m • Double digit revenue growth • Capex of £11m • Medium term ambitions unchanged: • Scale leverage PBT margins (+5%) • Continued double digit revenue growth • EPS growth 12

  13. Slide 13: Strategic Update

    Strategic Update John Roberts Founder and CEO 13

  14. Slide 14: FY24 progress

    FY24 progress • Continued progress on improving profitability • Simplified business, better for customers, record unit economics and a strong culture • Firm focus on driving profitable growth • Ambition is to be a double-digit growth business for the next five years • Self-help plan to grow market s

  15. Slide 15: Foundations for growth

    Foundations for growth • Brilliant retail basics • 3m customers transacted during Covid period likely to repeat purchase • Improving our proposition and unit economics in non-MDA categories • Build and drive increased customer loyalty across multiple customer cohorts • Medium-term tailwind of Covid

  16. Slide 16: Who do customers trust?

    Who do customers trust? 16 As at June 2024

  17. Slide 17: Summary

    Summary 17

  18. Slide 18: Questions

    Questions 18

  19. Slide 19: Slide 19

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