#1© 2022 asos FY22 Results 19th October 2022 asos Adı#2© 2022 asos Agenda FY 22 Results FY22 Financial Results Driving Change at ASOS, Now Building the future of ASOS 2 asos#3© 2022 asos Driving Change, Now The UK, our core operation, delivered a good performance (+7%) supported by our curated offer, differential visual language and strong KPIs Strong Topshop performance (+105%) reinforcing revenue growth in the UK, US and EU ▲ Clear CEO diagnostic of the issues ASOS faces with strong plans to address ▲ Over the next 12 months ASOS will deliver on four key actions to navigate the current uncertain macroeconomic backdrop focused on: Renewing our commercial model and improving our inventory management Simplifying and reducing our cost profile Ensuring a robust and flexible balance sheet ■ ■ ■ ▪ Refreshing our culture and our leadership team ▲ In parallel, we have launched a comprehensive review of ASOS' capital allocation across markets, of our customer acquisition channels, and of our end-to-end operations We have proactively agreed significant financial flexibility ▲ We expect to make a non-cash stock write-off of c.£100m to £130m, under our new commercial model, to reduce cost and complexity in FY23 3 asos#4© 2022 asos Agenda FY 22 Results FY22 Financial Results Driving Change at ASOS, Now Building the future of ASOS asos#5© 2022 asos FY22 Headline Results TOTAL SALES¹ 3,910.5 +4% FY21 (£'m) 193.6 3,936.5 ADJUSTED² PBT FY22 (£'m) -£171.6m FY21 (£'m) 22.0 FY22 (£'m) GROSS MARGIN 45.4% FY21 -180bps 157.1 43.6% CAPEX³ +£25.8m FY22 182.9 FY21 (£'m) FY22 (£'m) ADJUSTED² EBIT MARGIN 5.3% FY21 -420bps NET CASH/(DEBT)" -£352.4m 199.5 1.1% FY22 FY21 (£'m) Total sales growth based on constant currency sales growth and excludes Russian sales in H2 21 2Excluding adjusting items totalling £53.9m. Please see RNS for full breakdown ³Capex reflects cash capex and excludes any fixed asset additions in relation to the right use of assets as part of IFRS 16 and any Topshop brands acquired assets "Net cash/(debt) is cash and cash equivalents less the carrying amount of any borrowings at year-end, but excluding outstanding lease liabilities All sources: ASOS internal operational records (152.9) FY22 (£'m) 2000L 5 asos#6Ⓒ2022 asos FY22 Operational Highlights Strong Topshop performance and launch of the next chapter for Topshop Successful launch of Partner Fulfils in the UK, Germany, France, Spain and Italy with Adidas and Reebok, with several additional brands planned for launch in October and November 12% growth in Premier customer base, shopping 3.5x more than an average ASOS customer, key to driving loyalty and engagement 1 ASOS offers a unique proposition to its partner brands enabling access to new consumers and occasions through new and exciting partnerships Range of ASOS Design dresses designed exclusively for the US customer STRANGE THINGS ¹ASOS internal operational records TOPSHOP LONDON C PA POLAR VAPOR RATIONAL#7© 2022 asoS Operating KPI performance Growth in key KPIs reflecting increased consumer engagement and more intentional purchasing, while ABV stepped back on the year as a result of the step up in returns Group KPIs Visits Mobile device visits Conversion ABV CC² Average Order Frequency³ Active Customers4 Premier Customer growth FY22¹ 3,019.8m 87.9% 3.3% £38.22 3.88 25.7m +12% 1 Group KPIs exclude Russian sales in H2 21 2 ABV quoted on a constant currency basis excluding Russia 3Calculated as last 12 months' total orders divided by active customers 4Active customers defined as having shopped in the last 12 months as of 31 August All sources: ASOS internal operational records Change vs LY +1% +200bps +20bps -3% +5% +2% Operating KPIs' performance Active customers grew 2%, reflecting slowing customer acquisition YoY Average order frequency increased by 5%, with an increase in orders, visits and conversion reflecting increased consumer engagement and more intentional purchasing 7 ABV CC stepped back (-3%) as return rates increases were only partly offset by higher prices and a mix back into higher price point products asos#8© 2022 asos Key financials by segment UK Revenue growth supported by strong KPI performance despite tough consumer backdrop Total sales CC² Visits Conversion CC ABV3 Average Order Frequency4 Active Customers5 Premier Customer growth EU UK +7% +7% +20bps -3% Growth impacted by weakening consumer outlook and increased return rates in H2 5.9 (+5%) 8.9m (+5%) +6% EU +2% +2% +10bps -4% US 2.9 (+2%) 10.9m (+5%) +33% ¹ROW KPIs exclude Russian sales in H2 21 2Segmental sales based on total sales, which includes retail sales and income from other services, and growth rates calculated on a constant currency basis 3 ABV CC metrics is calculated as net retail sales/number of orders in the period on a CC basis 4Calculated as last 12 months' total orders divided by active customers 5Active customers defined as having shopped in the last 12 months as at 31 August All sources: ASOS internal operational records US growth supported by Topshop growing triple digits on the year and increased demand for occasion wear in H2 US +10% -8% +20bps +4% 2.4 (0%) 3.4m (-1%) +19% ROW Performance in Australia improved in H2 as Premier was reactivated and delivery propositions returned to normal ROW¹ -9% -6% Flat -1% 2.4 (+2%) 2.5m (-14%) +208% 8 asos#9© 2022 asos Gross Margin Evolution Gross margin declined 180bps on the year primarily driven by increases in freight and duty and markdown 45.4% FY22 Gross Margin Bridge¹ 1 ASOS internal operational records -180bps FY21 Gross Buying Topshop Price Margin Margin I T I 1 I 1 I T 1 1 (1.8%) Clearance and and Duty Markdown I I 1 Freight i Other 43.6% FY22 Gross Margin Gross Margin impacts Mid-single digit price increases across ASOS brands primarily impacting H2 Elevated clearance and markdown, with an improvement in H2 YoY Improvements in buying margin as a result of operational excellence initiatives Growth of Topshop supportive of gross margin expansion Freight and Duty headwinds reflective primarily of contractually higher sea freight rates YoY 9 asos#10© 2022 asoS Operational Cost Overview Gross Margin Distribution Costs Warehouse Marketing Other Costs Depreciation Other Income Adjusted EBIT Margin¹ Interest Adjusted PBT Margin¹ Adjusting Items FY22 % of sales 43.6% (13.3%) (10.8%) (5.7%) (9.7%) (3.5%) 0.5% 1.1% (0.5%) 0.6% (1.4%) 1 Excluding adjusting items totalling £53.9m. Please see RNS for full breakdown Note: Above table subject to rounding All sources: ASOS internal operational records FY21% of sales 45.4% (13.0%) (9.1%) (5.1%) (9.6%) (3.3%) 5.3% (0.3%) 5.0% (0.4%) Change (180bps) (30bps) (170bps) (60bps) (10bps) (20bps) 50bps (420bps) (20bps) (440bps) (100bps) ● ● ● ● ● ● ● Comments (100 bps) COVID unwind of return rate Increase in split orders Partially offset by supplier negotiations and flexible carrier strategy (80bps) COVID unwind of return rates Labour inflation Launch of Lichfield as a manual facility Increased stock holding resulting in FC inefficiencies Launch of broad reach marketing campaign in H1 10bps increase as inflationary pressures were offset through our operational excellence programme TGR depreciation annualisation Income from closing out of RUB hedge and Leavesden sublet Annualisation of convertible bond interest See detailed breakdown in the RNS 10 asos#11© 2022 asos Closing net debt position of £152.9m driven by working capital outflow primarily resulting from increased inventory levels 199.5 Opening Net Cash/(Debt) YE22 ¹ASOS internal operational records 140.0 EBITDA I I 1 I 272.7 Working Capital I I I I I I T 1 I I T 1 1 FY22 Cashflow Bridge¹ Capex spend = £182.9m 122.9 Tech -177% 60.0 Supply Chain 26.3 IFRS 16 leases 10.5 Other (152.9) Closing Net Cash/(Debt) YE 22 11 asos#12© 2022 asos Agenda FY 22 Results FY22 Financial Results Driving Change at ASOS, Now Building the future of ASOS 12 asos#13© 2022 asos We have the capacity to champion style in a differentiated way as evidenced by our market leading position in the UK 720 2017 891 2018 UK Total Sales (£m)¹ CAGR: 20% 1,030 2019 ¹ASOS internal operational records 1,214 2020 1,652 2021 1,763 2022 Creators of fashion TOPSHOPP Curators of fashion adidas 13 Champions of style asos#142022 asos However, we have failed to reach that level of success in other markets Despite a positive contribution, international operations are not delivering to our expectations... Complex and overstretched global footprint Commercial and marketing model not adapted to global operations Complex E2E operations not focused on speed to market Data and digital not effectively leveraged Gaps in leadership and culture ...Driving an unsatisfactory performance Disappointing international sales growth and contribution given capital investment, particularly in the US X COO 880 Weakening gross margin evolution Slow traffic acquisition Poor quality of engagement with consumers Slow stock turn Slow time to market Low data fluency Not using digital advantage Lack of drive for change 14 asos#15© 2022 asoS We have a plan to drive change now Creators of Curators of Champions of fashion fashion style PSHOP and we will develop a stronger organisation built on four key principles: 1 Simplicity 2 Speed to Market 3 Operational 4 Flexibility & Excellence Resilience 15 asos#16© 2022 asos To build an organisation resilient and focused on long term value creation A stronger organisation built on four key principles: 1 Simplicity 2 Speed to Market 3 Operational 4 Flexibility & Resilience Excellence Clear plan to improve resilience through operational improvements and disciplined capital allocation in the short-term Comprehensive review of ASOS' capital allocation, focused on creating a business that generates long-term sustainable growth for investors S 16 asos#17© 2022 asos Agenda FY 22 Results FY22 Financial Results Driving Change at ASOS, Now Building the future of ASOS 17 asos#18© 2022 asos A clear plan focused on delivering operational improvements and disciplined capital allocation in the short-term Renewed commercial model WORLDWIDE 12 Stronger order economics and lighter cost profile 3 Robust and flexible balance sheet C 20 EANS TO ONAK MATE SEPAR NETTVE TOMMY JEANS Refreshed leadership team & culture 18 asos#19© 2022 asos 1. Renewed commercial model Accelerated change in buying and merchandising resulting in a more curated customer offer and more efficient stock management Opportunity Improved Fashionability and flexibility of range More efficient stock management ■ ■ ■ ■ Immediate focus ■ Embed new organisation focused on relevance and flexibility Increased stock management discipline ■ Faster routes to clear with more channels to clear stock and improved profitability and speed Right-sizing our stock portfolio in H1 resulting in a non-cash write off of £100m-£130m New business models to enable flexibility (Partner Fulfils, Fulfilled by ASOS, Test & React) New buying processes with reinforced controls Increase visibility of full-price product on site Customer engagement focused on relevance and story telling Reduce costs and complexity in our logistics network Outcome ◆ Gross margin Working capital Time to market ◆ Stock turn Working capital Logistic costs 19 asos#20© 2022 asos 2. Stronger order economics and lighter cost profile Mitigate the impact of inflation and improve profitability www Opportunity Improved order economics, especially outside key strategic markets Optimise our cost base ■ ■ Revisit our positioning outside key strategic markets 0 Optimise prices and service levels 0 Immediate focus Reduce split deliveries 0 Optimise our logistics costs ☐ Revisit price of our delivery services 0 Consolidation of warehouses Increase of operational efficiency Reduction of our overhead costs 0 Simplification of processes and organisation Optimisation of promotional spend Reduction of external spend Rationalisation of assortment Improvement of freight costs Outcome Margin per order Split shipments 20 Logistics cost/order ↓ Overhead costs ◆ Intake margin asos#21© 2022 asos 3. Robust and flexible balance sheet Enhanced flexibility to support agenda for change Opportunity Significantly enhanced financial flexibility Create more flexible and prioritised allocation of capex ■ Immediate focus Proactively renegotiated the RCF and waiver of banking covenants Gross cash and committed facilities of over £650m at year end Reduced logistics capex and investment focused on priority digital initiatives Planned strategic investment in technology will be maintained in support of an improved customer experience, better data management and some critical priority initiatives such as Partner Fulfils ↑ Outcome Operational flexibility Capex 21 asos#22© 2022 asoS 4. Refresh leadership team and culture Focus the organisation on operations, simplify decision making and embed a high performance culture Opportunity Organisation focused on operations and commercial delivery Ensure the best internal and external talent Cultural refresh ■ ■ ■ ■ ■ Immediate focus ■ Ensure development of internal talent Attraction of capabilities we are missing Ensure diversity (including international talent) New structure focused on Operations and speed to market ■ Simplified decision making (fewer layers) Breaking down silos Simplicity and transparency Ownership and entrepreneurial culture ■ Excellence and innovation Outcome Truly customer- focused organisation Speed and flexibility High performance culture 22 asos#232022 asos In parallel, we are undertaking a comprehensive review of our resource allocation principles focused on generating long-term sustainable growth @ Operating model Investment across geographies 22 Customer Acquisition Strategy Digital and data 23#24© 2022 asos This plans is reflected in our critical KPIs for FY23 ▲ Gross margin expansion through tighter stock buy, greater full-price mix, with freight costs reducing (freight costs reducing by c.100bps) ▲ A lighter cost structure with expected cost savings accelerating over the next 12 months ▲ These measures will more than offset the impact of anticipated inflationary headwinds and the cost of elevated return rates ▲ There will be a non-cash write-off of inventory, which will be treated as an adjusting item for adjusted EBIT and expected to be £100m-£130m. ASOS will begin to operate with lower stock levels in H2 due to the lead times on orders and deliveries There will also be c.£40m of adjusting items relating to our change programme and Topshop Brand amortisation H1 loss driven by the usual profit phasing and exacerbated by elevated markdown to clear stock resulting from change in commercial model, with contractual freight decline and cost mitigations expected to benefit mostly in H2 ▲ Capex expected to be £175m-£200m, below the previously guided range of £200m-£250m in the mid term Expected free cash flow in the range of (£100m) - £0m and expected to return to cash generation in H2 as the new commercial model begins to have a positive impact on gross margin and working capital and the cost reduction impact accelerates ▲ To navigate the continued macroeconomic volatility, ASOS has agreed additional financial flexibility through the renegotiation of core banking covenants, with cash and committed facilities of over £650m at year end 24 asos#25© 2022 asos Driving Change, Now Leverage strength of UK New organisation built upon: Simplicity Speed to market Operation excellence Flexibility and resilience Focused short term plan: Less stock Less cost More cash Refreshed leadership and culture Comprehensive review of resource allocation to deliver long- term sustainable growth P 25 asos#26I © 2022 asos Q & A 26 asos#271 1 © 2022 asos 1 Ľ