#1Kom asos 2019 Full Year Results 16 October 2019 INGYANG#2Overview Nick Beighton | CEO asos#3Sales +13% UK +15% EU +12% US +9% ROW +12% Net debt £90.5m after elevated Capex investment PBT Results Summary £33.1m Transition and restructuring costs (FY19: £50.5m, FY18: £25m) Solid Finish to P4 Sales +15% Visits +20% Active customers 20.3m ↑ +10% 4711 asos#4Underestimated complexity of simultaneous warehouse transformation in Europe & US i Disruption Through Transformation Invested over £600m to build a platform for growth and capabilities for a leading global retailer 0000 US Hub operations stable with capability to support growth Product rebalancing and stock build in US progressing to plan ahead of peak Euro Hub automation & mechanisation issues resolved, operational as planned Internal Capabilities not kept pace: deflected focus from core product & engagement Customer Engagement Product SEO rankings People ** SEO Content & velocity improved & resonating well Presentation improved, width & newness restored Tech changes driving ranking improvements globally Upweighting management experience asos#5FY20 Priorities... Building greater fitness for growth Built platform and foundations for global growth in FY19 2 AUGALAI 3 Strengthen Remove Product choice, organisational non-strategic cost availability, price capabilities & newness 4 Presentation & social media engagement 5 6 Hop h Optimise customer Leverage benefits acquisition & from retention transformational investments PARENGANAPALMAKLAGANG MAKENTAU W asos#6Business Performance Mat Dunn | CFO asos#7Retail Sales +13% £2,355.2m FY18 £42.7 £2,657.7m Net Debt FY18 FY19 FY19 £(90.5m) Financials at a glance Gross Margin -240bps PBT -68% 51.2% FY18 98.0p 48.8% Diluted EPS -70% FY18 FY19 29.4p FY19 £102.0m FY18 £33.1m FY18 FY19 Capex £242.4m £195.0m កក FY19 asos#8UK Performance Sales growth of 15% driven by strong demand from UK customer base Traffic growth strengthening through the year Retail Sales Visits Orders Conversion ABV Active Customers* FY 19 KPIs +15% +9% +18% +40ps Flat 6.4m (+7%) Conversion up reflecting strong customer loyalty and product offering * 12 month measures - Active customers defined as having shopped in the last twelve months as at 31 August. 20% 15% 10% 5% P1 + P2 Monthly new customer acquisition and reactivations improving FY19 Retail Sales Growth P3 P4 FY asos#9EU Performance Sales up 12% reflecting restricted stock availability from warehouse automation issues Stronger P4 performance as stock availability and service improved Retail Sales Visits Orders Conversion ABV Active Customers* DOOD FY19 KPIs ABV decline driven by restricted higher ASP availability in P3 +12% +16% +12% -10ps -6% 7.8m (+10%) * 12 month measures - Active customers defined as having shopped in the last twelve months as at 31 August. 20% 15% 10% 5% Strong sales growth nin Sweden & Netherlands driven by new localised sites P1 FY19 Retail Sales Growth P2 Focus on reactivating customers following warehouse disruption P3 P4 FY asos#10US Performance US sales growth of 9% delivered during year of major operational transition US warehouse disruption evident in P2 Retail Sales Visits Orders Conversion ABV Active Customers* FY19 KPIs +9% +8% +8% Flat -4% 2.8m (+12%) P4 sales impacted by clearance activity with orders and visits growth stronger * 12 month measures - Active customers defined as having shopped in the last twelve months as at 31 August. 14% 12% 10% 8% 6% 4% 2% P1 Reduction in ABV driven by ASP of available US stock pool and markdown FY19 Retail Sales Growth P2 P3 P4 FY asos#11ROW Performance Sales growth of 12% driven by improving customer experience after P1 Consistently strong visits growth of over 20% after P1 Retail Sales Visits Orders Conversion ABV Active Customers* FY19 KPIs +12% +19% +15% -10bps +3% 3.3m (+18%) H2 acceleration in Australia, great growth in Russia and Middle East * 12 month measures - Active customers defined as having shopped in the last twelve months as at 31 August. 25% 20% 15% 10% 5% (5%) P1 | noll ABV increased year on year driven by items per basket improvement FY19 Retail Sales Growth P2 P3 P4 FY asos#12Gross Margin Distribution Costs Warehouse Marketing Other Costs Depreciation FY19 % of sales 48.8% (15.2%) (11.0%) (4.4%) (14.3%) (2.6%) Operating costs FY18 % of sales 51.2% (15.8%) (10.0%) (4.4%) (14.5%) (2.3%) Change (240bps) 60bps (100bps) Obps 20bps (30bps) BEECKERS DARK FUTURE asos#13ग 42.7 FY19 capital expenditure reflects transformational warehouse rollout Opening Cash 106.4 EBITDA Cash flow and net debt (16.1) Working Capital a (55.5) SC&F Transformation Capital expenditure to return towards BAU levels Capex spend (25.5) SC&F (26.6) Tech Transformation (89.6) Tech Platforms Working capital reflects transition to 3 hubs. (26.7) Capital Creditor contribution (1.8) Other (90.5) Closing Cash asos#14● ● Removing Non-Strategic Cost Remove non-strategic cost... Removing duplication and low return investment Streamlining organisation Non-working marketing spend Supply chain efficiencies across warehouse and delivery Maximising opportunity with partners ● ● ...to support growth and profitability Competitive pricing and promotional offering Increasing consumer engagement Optimising our use of tools and channels to maximise investment More active KPI management and inflight controls Greater discipline and rigour in performance management + Increased focus on capital discipline and cash management Sustainable long-term increases in profitability asos#15Accounting, Technical & Funding Technical → Capex reducing to c.£150m following warehouse investment → Interest charge expected to be low single digit million → Accounting policies reviewed and some small asset impairments taken in year → IFRS 16 expected to reduce PBT by low single digit million and increase EBITDA margin c80bps Brexit preparations well advanced MA $ Funding platform £350m RCF DARK FUTURE Standard covenants 80bps 5 year margin term → Appropriate headroom and balance sheet flexibility asos#16Building a Global Retail Leader Nick Beighton | CEO asos#17ASOS Strategy Mission to be the world's number one fashion destination for 20-somethings Our proposition Where we play How we win What capabilities will we need? ▪ Most relevant choice of 20 something fashion - amazing product competitively priced ▪ Content that's inspirational, educational & engaging reaching through the channels where 20 somethings are Sustainably sourced and delivered ▪ Total customer digital fashion offer ■ ▪ Personalised product and experiences presented to engage and inspire Digital experiences that are intuitive and easy to shop ▪ Friction free, fast & flexible service across delivery, returns and customer support ▪ Local fulfilment and virtual stock pool Increasing choice & newness ■ ■ ■ Cost effective agile model Enhanced leadership capability ▪ Fashion DNA, Global logistics experience, Technology Thought leadership on Ecommerce Investing to build momentum and achieve mission Global offer - distributed worldwide, increasingly localised Enhanced focus on UK, EU & US - "Keep UK hot, Accelerate EU, US" Capture growth and trade ROW territories W ■ asos#18Leveraging Investment in Logistics UK, EU & US facilities enable enhanced customer proposition to our key strategic markets Managing both choice of product and speed of delivery to customers globally 2014-2016 2017 - 2018 2019 2020 $ Key Warehouse Project Timeline Automation in Barnsley Driving efficiency in cost and throughput speed for reinvestment Incremental automation live in Barnsley Transition from 1st Europe site to larger Euro Hub US Hub opens Additional storage utilised in UK returns centre Euro Hub automation goes live Additional automation in Euro Hub will take throughput to 5.2m units increasing network throughput to 11.5m units Stockholding 60.0m 50.0m 40.0m 30.0m 20.0m 10.0m 0.0m 2014 Global Warehouse Capacity Stockholding 2015 Capacity for cost efficient growth 2016 -Throughput 2017 2018 2019 2020 2021 14.0m 12.0m 10.0m 8.0m 6.0m 4.0m 2.0m 0.0m Weekly Throughput asos#192.5 2.0 1.5 1.0 0.5 0.0 Leveraging Investment in Tech Platform Scalable platform with capacity for growth & stability through peak periods 2014 2015 Visits [Bn] 2016 2017 Increasingly personalised & localised friction free customer experience 2018 2019 Embedding automation & driving efficiency for reinvestment Global Tech Platform TGR building capabilities to trade as a global retailer across multiple hubs 200+ localised experiences 12 local language sites 19 currencies 10 payment methods 20.3 million active customers 17.9 million active app installs asos#20Strengthening Organisational Capability Investing in capability & experience for the next stage of the journey Building a more agile organisational and operating model Driving end to end accountability & ownership Harnessing internal talent & passion in more efficient structure Mat Dunn Chief Financial Officer Mark Holland Chief Operating Officer Cliff Cohen Chief Information Officer Nick Beighton Chief Executive Officer Chief Commercial Officer Chief Growth Officer Chief Strategy Officer Chief People Officer#21Increasing Product Choice through Curation... appealing to a broad range of styles and capturing all the moments in their lifestyle... 800 brands + over 800 boutiques on ASOS Marketplace 85,000 products + 160,000 on ASOS Marketplace a constantly evolving portfolio of most relevant 20-something brands ... leveraging insight from our multi-brand platform Inspiring exclusive collaborations, product design and brand positioning asos#22Increasing Product Choice through Creation... ... portfolio of brands, designed, developed & exclusive to ASOS Collection of brands with a distinct identity, & customer in mind Collusion stand out success in first year W stronger ASOS Design performance ASOS Design mix grew to 40% in P4 Great success with refocus on 'Glam' & 'Alpha' launching 'ASOS Design Luxe' & 'ASOS Design Dark Future' Launched our first 'Modest Fashion' collection continued focus on product presentation Ensuring presentation is always speaking to the right customer FINE asos#23Optimising Customer Acquisition Customer acquisition & retention at the heart of driving sustainable growth Underlying customer momentum is improving → Stronger visits growth in second half: H1 +11%, H2 +16% Regaining traction with core younger demographic → Over half of new active customers in second half under 25 FRROWEDN Action already begun to improve Strategy built to engagement → Realigned product presentation → Increased velocity and improved content of customer conversations → Making promotional moments more relevant and exciting Experimenting with new influencers (including Madison Beer & Ovie) SEO rankings improved globally capturing immediate demand, drive loyalty and building long term awareness asos#24Product Fashion With Integrity Investment in ASOS Design Over 80% sustainably sourced cotton, target 100% by 2025 Almost 40% sustainably sourced materials Global Fashion Agenda: Supporting Pledge for Circularity More detail at Packaging Paperless returns piloting in UK Reduced product packaging by 40% this year 100% recycled card in mail boxes & 50% recycled plastic in mail bags Electric delivery vans in Central London www.asosplc.com/corporate-responsibility People Global Framework Agreement with IndustriALL Global Union supporting workers in our supply chain Published third Modern Slavery Statement Active participant in ACT initiative supporting purchase practices & living wage and in our annual report > asos#25Platform established for global growth FY20 focus on enhancing capabilities to capitalise on opportunity சோம்பவர் 499 WD-INGEN ПОДЕ asos#26Q&A Please wait for the microphone and then state your name and institution. asos