Boohoo Group Plc · LSE:DEBS
Boohoo — H1 FY16 Earnings Presentation
35 slides from Boohoo's earnings presentation, Sep 29, 2015
Slide 1: Interim Results for the Six Months Ended 31 August 2015
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2015 Tuesday, 29 September 2015
Slide 2: H1 FY16 Highlights
H1 FY16 Highlights Strong revenue growth up 35% Improvements to product proposition Warehouse extension operational 3.5 million active customers up 32% 02
Slide 3: Neil Catto, CFO
NEIL CATTO CFO 03
Slide 4: Financial Highlights
Financial Highlights Revenue up 35% (39% CER) to £90.8m (FY15 - £67.2m) UK growth 30% year on year Rest of Europe growth 19% (34% CER) Rest of the world growth 65% (75% CER) Gross margin at 60.1% in line with expectations EBITDA £7.6m (8.4% of sales reflecting investment in price, promotions and mar
Slide 5: Summary Income Statement
Summary Income Statement Six months ended 31 August (£m) FY16 FY15 Change Revenue 90.8 67.2 +35% Gross margin at 60.1% Gross profit 54.5 41.8 +30% reflects investment in international pricing and UK Gross margin 60.1% 62.3% -220bps delivery offering Distribution costs 21.5 14.6 +47% Administrative e
Slide 6: International
International Sales by geographic segment £m FY16 FY15 Change CER UK 59.1 45.6 +30% +30% Rest of Europe 10.4 8.7 +19% +34% Rest of world 21.3 12.9 +65% +75% Total revenue 90.8 67.2 +35% +39% 90.8 72.6 Continued strong growth globally 67.2 31.7 58.4 23.9 51.4 21.6 Europe impacted by weak Euro 18.3 20
Slide 7: Operating Costs
Operating Costs Six months ended 31 FY16 FY15 Change August, £m Marketing 11.4 9.8 +17% 53.4% 53.6% 51.0% Distribution 21.5 14.6 +47% 48.5% 48.6% Other admin 15.7 11.5 +37% 17.1% 17.3% 13.8% 11.5% 16.9% TOTAL 48.6 35.9 +36% 23.1% 21.8% 23.7% 20.9% 22.1% Six months ended 31 FY16 FY15 Change August, %
Slide 8: Operating Cash Flow
Operating Cash Flow Six months ended 31 August, £m FY16 FY15 Efficient conversion of EBITDA to cash Profit for the period 5.0 3.3 Inventory tightly controlled Depreciation/amortisation 1.3 0.8 Working capital inflow of £5m or 5.5% Share-based payment charges 0.3 0.4 of sales Tax expense 1.3 1.2 Fina
Slide 9: Balance Sheet
Balance Sheet At 31 August, £m FY16 FY15 Assets Intangible assets 4.5 3.8 Investment in warehouse Property, plant and equipment 15.3 7.0 and IT infrastructure Deferred tax 0.1 0.1 Negative net working Non-current assets 19.9 10.9 capital cycle helps fund growth Working capital (8.5) (4.8) Capital em
Slide 10: KPIs
KPIs MONTHLY SESSIONS (MILLIONS) AND CONVERSION RATE2 5.0% 20 Sessions Conversion rate Indicator FY16 FY15 Change 18 4.5% 16 Active customers1 3.5m 2.7m +32% 14 4.0% Number of orders 3.8m 2.7m +43% 12 Order frequency4 1.97 1.86 +6% 3.5% 10 Conversion rate2 3.8% 3.5% +30bps 8 3.0% 6 Average order val
Slide 11: Capital Expenditure
Capital Expenditure CAPITAL EXPENDITURE GUIDANCE - £M 13.0 1.5 Warehouse extension complete 2.5 8.2 Fit out underway June 2015 Other Capex guidance for FY16 3.1 IT - £13m including final costs 4.5 Warehouse for warehouse extension 9.0 Review of automation alternatives 3.3 4.7 underway 0.9 FY 14 FY15
Slide 12: Guidance
GUIDANCE Revenue growth 30% to 35% EBITDA in line with current expectations Management will look at opportunities to further invest in customer lifetime value and market reach which may impact margins in the short term CAPEX £13.0m 12
Slide 13: Carol Kane, Joint CEO
hy), re Hh’ ; y izi= ' Seis tie =i « 35 Pitias cif S31 8 Sia. CAROL KANE" JOINT CEO 4 . i _ © BoohoO eon
Slide 14: Our Fashion
Our Fashion New Areas: Petite, Fit, Co- Ords – 1,000 New Styles Range Extension Continued Investment: International: Plus, Denim, Coats and Swimwear Knitwear in – 1,700 Australia New Styles 14
Slide 15: 15
15
Slide 16: Co-ords
Co-ords 16
Slide 17: Swim wear
Swim wear 17
Slide 18: Australian Autumn
Australian Autumn 18
Slide 19: Our Fashion: So what's next?
Soft Range Tailoring Extension Tall !!!!!!!!!! Our Fashion So what’s next? 19
Slide 20: Soft Tailoring
NEED COORDS IMAGE Soft Tailoring 20
Slide 21: Tall
Tall 21
Slide 22: The strong emerging trends
AW15 The strong emerging trends 22
Slide 23: The strong emerging trends: 60s Shift Dress
AW15 The strong emerging trends: 60s Shift Dress 23
Slide 24: The strong emerging trends: Oversized Checked Shirt
AW15 The strong emerging trends: Oversized Checked Shirt 24
Slide 25: The strong emerging trends: Suede
AW15 The strong emerging trends: Suede 25
Slide 26: The strong emerging trends: 70s Bohemian Dress
AW15 The strong emerging trends: 70s Bohemian Dress 26
Slide 27: Our Market Share: UK
Our Market Share: UK 1 Next 7.5% 2 Asos 6.0% 3.50% 3 George at Asda 5.9% UK HITWISE MARKET SHARE OF VISITORS 4 New Look 4.2% 3.00% 5 Boohoo.com 2.9% 2.50% 2.00% 1.50% 1.00% 0.50% - 27
Slide 28: Mobile Engagement
Mobile Engagement SESSIONS BY DEVICE TYPE BY MONTH DESKTOP TABLET Foreign language sites now MOBILE fully responsive Conversion improvement Proportion of mobile traffic continues to increase SESSION MIX (%) BY DEVICE TYPE BY MONTH DESKTOP App implemented 50% TABLET MOBILE 28
Slide 29: Marketing
Marketing 29
Slide 30: Marketing
Marketing !!!!!!!!!! WeAreReady WeAreHot WeAreFun WeAreFree WeAreNow !!!!!!!!!! 30
Slide 31: Video
VIDEO 31
Slide 32: Social Engagement: FR & AUS
Safia & Caroline (FR) Danielle Peazer (AUS) Bella Thorne 622k Youtube subscribers 3.1m Twitter followers 6.9m Twitter followers 393k Instagram followers 1m Instagram followers 6.6m Instagram followers Social Engagement: FR & AUS New boohoo.com brand advocates 32
Slide 33: Charli XCX For boohoo - Collaboration
Charli XCX For boohoo - Collaboration 33
Slide 34: Charli XCX For boohoo - Collaboration
Charli XCX For boohoo - Collaboration 34
Slide 35: Summary
Summary Momentum recovered/ accelerated growth Investments made for successful H2 Good start to AW15 (early days) Continued focus on execution 35