#1asos 2021 Half-Year Results 8 April 2021#2OVERVIEW Nick Beighton | CEO HALF YEAR RESULTS PRESENTATION I 8 APRIL 2#310⁰.000 CH|| Key results Record first half adjusted* PBT number of £112.9m with underlying momentum double year on year (excluding COVID tailwind £48.5m) Strong first half retail sales (+24%, +25% CC) and adjusted* EBIT margin of 5.9%, both ahead of consensus Good customer growth of 12% to 24.9m YoY. Active customers +1.5m in the first half Net cash position of £92.0m despite £266.0m acquisition cost outlay Integration of Topshop, Topman, Miss Selfridge and HIIT on track *Excluding Topshop brands acquisition and integration one-off costs of £5.9m and amortisation of acquired intangible assets of £0.6m 3 asos#4The last 12 months has taught us a lot about our business The commitment, resilience and professionalism of our people has been amazing Built greater agility into our model and enhanced our category breadth Fully tested the resilience and flexibility of our operations and processes Opened up new ideas and innovation for us to explore 4 asos#5FINANCIAL RESULTS Mat Dunn CFO HALF YEAR RESULTS PRESENTATION I 8 APRIL 5#6TOTAL SALES 1,597 HY20 (£m) 30.1 24% HY20 (£m) 1,976 ADJUSTED² PBT HY21 (£m) 112.9 HY21 (£m) GROSS MARGIN 47.0% HY20 70.6 Financials at a glance HY20 (£m) -200bps 45.0% HY21 CAPEX³ 64.7 HY21 (£m) ADJUSTED¹ EBITDA 6.0% HY20 MARGIN +320bps -163.6 HY20 (£m) NET CASH 9.2% ¹Excluding Topshop brands acquisition and integration one-off costs of £5.9m and share based payments 2Excluding Topshop brands acquisition and integration one-off costs of £5.9m and amortisation of acquired intangible assets of £0.6m ³Excluding any fixed asset additions in relation to the right use of assets as part of IFRS16 and any Topshop brands acquired assets HY21 92.0 HY21 (£m) 6 asos#7Unpacking the impact of COVID on our cost base Gross margin has been impacted by incremental COVID freight costs, lockdown product mix and FX movements 47.0% COVID and FX have had a 260 bps impact on GM Lockdown COVID Gross Margin category Freight Costs H1‘20 mix FX Other 45.0% Gross Margin H1‘21 ...which have offsetting impacts in operating costs, with COVID changing the shape of our underlying P&L Distribution Costs Warehouse Marketing Other Costs HY21 % of sales (12.5%) (8.7%) (5.5%) (9.7%) HY20 % of sales (14.0%) (10.1%) (4.3%) (12.8%) Change 150bps 140bps (120bps) 310bps 7 asos#8Gross Margin Distribution Costs Warehouse Marketing Other Costs EBITDA Margin Adjusted EBITDA Margin¹ Depreciation EBIT Margin Adjusted EBIT Margin² HY21 % of sales 45.0% (12.5%) (8.7%) (5.5%) (9.7%) 8.6% 9.2% (3.1%) 5.6% 5.9% P&L overview HY20 % of sales 47.0% (14.0%) (10.1%) (4.3%) (12.8%) 5.8% 6.0% (3.6%) 2.2% 2.2% Change (200bps) 150bps 140bps (120bps) 310bps 280bps 320bps 50bps 340bps 370bps ¹Excluding Topshop brands acquisition and integration one-off costs of £5.9m and share based payments 2Excluding Topshop brands acquisition and integration one-off costs of £5.9m and amortisation of acquired intangible assets of £0.6m Note: Above table subject to rounding 8 asos#9Non-strategic costs We continue to actively pursue reductions in non-strategic costs and see improvements across different business areas W W W W CH 500 Focused marketing investment on more efficient channels Alignment of organisational structure and capabilities further refined Cost savings from increased effectiveness across central costs, targeted procurement activity and underlying supply chain costs Increased efficiency through improved processes in key areas such as returns, product re-processing and customer care 9 asos#10Strong customer engagement with newly acquired customer behaviours offsetting reduction in low frequency occasion-wear shoppers RETAIL SALES CC VISITS ORDERS CONVERSION ABV ACTIVE CUSTOMERS¹ UK +39% +31% +24% -30bps -5% Key financials by region Exceptional UK growth with US and ROW impacted by higher exposure to going-out product 7.8m (+15%) ¹Defined as having shopped in the last 12 months as at 28/29 February EU +18% +15% +12% Obps -4% 9.9m (+14%) US +16% +22% 0% -60bps 0% 3.3m (+6%) + Deliberate purchasing influencing conversion behaviours but more than offset by associated returns profile ROW +16% +10% -2% -20bps +10% 3.9m (+5%) GROUP +25% +19% +15% -10bps -3% 24.9m (+12%) 10 asos#11407.5 Opening Net Cash YE 20 Strong profitability supporting EBITDA and free cash flow generation 170.7 EBITDA - 133.6 I I 1 Working Capital I I Includes c.(£89m) of working capital unwind -3.0 Warehouse & Facilities Transformation Cash flow Total cash capex investment of £60.6m across warehouse and technology infrastructure Capex Spend -8.9 Warehouse and Facilities -9.2 Tech Transformation -39.5 Tech Platforms -266.0 + Acquired assets from Topshop brands Retain net cash position following Topshop acquisition and anticipated working capital outflow - 13.7 IFRS 16 Leases - 12.3 Other 92.0 Closing Net Cash HY 21 11 asos#12We expect returns rates to normalise as restrictions lift... Sep Underlying Returns Rate Nov YoY -HY21 Oct Dec Jan HY20 Feb 70 60 50 40 30 20 10 O -10 -20 Consumer behaviour ... and correspondingly expect demand for going out product to start to return... Mar '20 to Feb '21 YoY Sales Growth: COVID Period 23% of mix -9% mix change Going Out* 41% of mix +11% mix change Casualwear, Activewear, F&B ASOS Excl Going Out *Dresses, formal wear and fashion footwear 55 50 45 40 35 30 25 20 15 10 5 O ...and we expect online penetration to stabilise above pre-pandemic penetration levels 29% 23% '18% ¹17% 2019 Online Penetration by Segment UK US EU* 52% 38% 27% 25% 2020 ROW* 1 I I I I 1 1 1 48% 30% 25% 23% 2021 Source: GlobalData Jan21 update based on calendar year including tax & kidswear; *Available data only for 19 EU and 28 ROW countries I I I 1 I I 12 asos#13Expectations Technical & IR £ Y+ Expectations, technical & investor relations Positioned for event-led growth whilst remaining cautious on the consumer outlook, increased focus and investment to support global opportunity Returns rate expected to start to normalise as restrictions ease, however freight rates expected to remain at elevated levels for the balance of the year Increased FY21 expectations in line with first half performance, second half remains unchanged despite investment into EU pricing to enhance customer perception Topshop one-off acquisition and integration costs now expected to be c.£10m in 2021 (reduced from c.£20m) Expect positive FCF in second half, CAPEX guidance unchanged at c.£190m Adoption of adjusted measures to demonstrate underlying performance and aid comparability following acquisition We will be hosting a series of CME's kicking off with an event showcasing ASOS brands on 20 April, with a fuller update in the late summer 13 asos#14PROGRESS AGAINST OUR STRATEGIC PRIORITIES Nick Beighton | CEO HALF YEAR RESULTS PRESENTATION I 8 APRIL 14#15our vision is to be the number 1 destination for fashion- loving 20-somethings worldwide 01. Expand our overall scale and local scale by accelerating growth in key markets 02. Grow our unique ASOS brands by launching new brands and improving on both speed to market and price 03. Enhance our flexible and multi-brand platform by growing high potential categories, implementing flexible fulfilment and improving our proposition 04. Improve our inspiring and personalised customer experience through the application of data science and Al to deliver the most engaging experience Develop our effective, efficient and sustainable model by transforming our 05. organisation and operations including upgrading talent and capabilities, improving cross- functional ways of working and further driving responsible fashion into everything we do and our relentless focus on our strategic priorities will make this a reality 15 asos#16TRULY GLOBAL RETAIL 01. Become a truly global retailer We have strengthened our foundation for global growth with the roll-out of TGR, bringing with it some key benefits to our internal ways of working Ⓡ Restructures the way we plan and trade our products 00⁰ Improves internal decision-making with better reporting, visibility and data Delivers better pricing flexibility Improves stock pool management and inbound stock planning Successfully launched in eight phases over a five-week period which completed on 23 March, with continuous post go- live support Key enabler to support our growth ambitions 16 asos#1701. Become a truly global retailer Our capacity expansion plans are progressing as planned to deliver over £6bn of net sales capacity by the second half of FY23 W Lichfield build on track Chickt Manual launch on track for FY21 with automation planned for H2 FY23 6 million units stockholding to expand to 17 million units Supporting UK and ROW territories US Automation will come online in H2 FY23 W W X)X)X WW W Automation is currently in design phase FRIRE MINEFOR Stockholding will increase by c.50% to 15.5 million units Throughput will increase to 3.1 million units per week 17 asos#18CRCC TON dank fufune 02. Grow our unique ASOS brands ASOS Brands asos DESIGN Logo Carriers UNRVLLD/SPPLY asos EDITION ACTUAL asos LUXE YOU ASY asos 4505 asos MADE IN KENYA CROOKED TONGUES daysocial Venture Brands COLLUSION* RETAGE AS YOU TOPSHOP ΤΟΡΜΑΝ Miss Selfidge HIT X HIT Destinations OUTLET O MARKET asos PLACE 18 asos#19● ● Day 1 We have delivered each milestone of our Topshop, Topman, Miss Selfridge and HIIT integration on schedule TOPSHOP IS NOW A PART OF ASOS! Head to ASOS now to shop the brand... and stay tuned for the full collection GO TO ASOS Cross-functional 'deal team' working group to reach an agreement with administrators Initial planning of integration approach 02. Grow our unique ASOS brands Key integration principals agreed ● Day 2 ● TOPSHOP SAME ICONS, A • 3 days post completion ΤΟΡΜΑΝ SAME ICONS, NEW HOME ASOS web pages app content live and redirections active and Marketing launch across multiple social media channels Critical data transfers completed fudge ● ● Day 21 TOPSHOP TOPSHOP GET 25% OFF TOPSHOP MISS SELFRIDGE & HIIT! With code: NEW2THEFAM SHOP NOW 3 weeks post completion Full customer re- launch supported by HI Stock extraction, transfer and TO multi-channel marketing and website auto re-direct processing completed to plan, enabling customer relaunch то P S H OP ΤΟΡΜΑΝ Miss Selfridge HIIT Day 100 COLLUSION* Miss Selfridge TOPSHOP asos BAGE TOPMAN MINTAGE HIIT OU Now integrated into BAU, internal working groups to draw up longer term plan for brands to enable them to reach full global potential 19 asos#2002. Grow our unique ASOS brands Site traffic saw a significant step-change post acquisition with a further step up after re-launch driving strong sales momentum asos .. FEB SITE VISITS '21 VS '20 Total Topshop brands Visits TY Total Topshop brands Visits LY ли 02 4 6 Customer Re-launch +226% то P S H OP ΤΟΡΜΑΝ Miss Selfridge HIIT 8 10 12 14 16 18 20 22 24 26 28 Strong sales momentum with triple digit growth across Topshop, Topman and HIIT Miss Selfridge posting double digit growth rates Strongest growth rates coming from the US, UK and Germany 20 asos#2160 50 40 30 20 10 0 -10 -20 02. Grow our unique ASOS brands Strong growth in ASOS design despite the step-back in 'going out' wear, well-positioned to react dynamically to changing consumer trends as social restrictions ease asos DESIGN ASOS Design H1 YoY Growth by Category 29% of mix -9% mix change 27% of mix +8% mix change Going Out* Casualwear & Activewear *Dresses, formal wear and fashion footwear 24% ASOS Excl Going Out Clary's £ (£) Y + Increased portion of Open to Buy Continual focus on agility in the supply chain Upweight short-lead time products 21 asos#22ASOS 4505 delivering consistently strong YoY growth with our Logo Carriers growing exponentially in a very short space of time 1 YOY Growth in Net Sales 67% 02. Grow our unique ASOS Brands asos 4505 H120 Y-on-Y Growth 68% H121 Y-on-Y Growth I I Logo Carriers Net Units Sold, YoY Growth Rate COLLECTIVE dank fufune CROOKED TONGUES UNRVLLD/SPPLY ACTUAL daysocial +140,000 units, +173% +200,000units Launch: Oct '20, no comp +70,000 units, +50% +70,000units, +176% +60,000 units Launch: Sep '20, no comp +50,000 units Launch: Sep '20, no comp 22 asos#2302. Grow our unique ASOS Brands Our venture brands posted record sales growth GROWTH RATE MIX GROWTH COLLUSION* +93% COLLUST COLLUSIO +70bps RECLAIMER NINTAGE imen +92% umane +30bps 23 asos#2403. Enhance our flexible and multi-brand platform We saw further outperformance of "lockdown" categories supported by continued flexibility in shaping product offer to demand FACE + BODY +114% ACTIVE WEAR CASUAL WEAR +95% +69% AsYou AsY 24 asos#2503. Enhance our flexible and multi-brand platform Our platform continues to strengthen with increased product availability, consistent newness, expanded customer choice and convenience +120 +100 CANT 1949 New Brands Delivery improvements www 18,300+ New click & collect locations CAR PORTES 25 asos#26● ● 03. Enhance our flexible and multi-brand platform We are seeing positive results through our first phase of Flexible Fulfilment roll-out, with our Partner Fulfilment roll-out planned for the end of this calendar year ASOS Flex Fulfilment Phase 1 - ASOS Fulfils DELIVERY OPTIONS FREE Standard Delivered on or before Monday, 2 June, 2020. Please note: Free People and Monki items will be shipped from our UK warehouse and will arrive 1 day later. No shipping on Public Holidays. Shipping to Alaska, Hawaii More $7.99 Express Shipping Delivered on or before Friday, 30 May, 2020. Please note: Free People and Monki items will be shipped from our UK warehouse and will arrive 1 day later PAYMENT Allows for stock pool optimization Ability to fulfil orders from multiple ASOS warehouses to our customers ● ● Phase 2 - Partner Fulfilment ठठ Delivery capability from a 3rd party brand direct to consumer Improves stock availability and expands choice 26 asos#2704. Improve our inspiring and personalised customer experience We are advancing our use of Al and data science to deliver an aspirational customer experience SAVE £85.00 £22.10 (-74%) Pow 2013 VIDEO ASOS DESIGN long sleeve prom dress in lace with circle trim details. RATINGS AND REVIEW NEW IN: CLOTHING SORT - FROM €20.00 MIE & MATCH €8.00 LILY ASOSHEER NEW IN RECS Premier Delivery Unlimited Next-Day Delivery for a whole year? Yours for £9.95. T&Cs apply 20% OFF EVERYTHING HURRY, THIS SALE EXPIRES IN 22.46.13 MIN HRS Do VIEW ALL SEC PROMO COUNTDOWN = calls on MEN ✓ HOME CATEGORIES Styles based on OITT NEW IN £62.00 Converse Chuck Taylor All Star Hi trainers in bl.... 18:25 shopping habits FOR YOU FOR YOU £67.95 Nike Running Re 2 trainers in bla 27 ISOS#2805. Develop our effective, efficient and sustainable model With our strengthened, globally experienced leadership team in place we have realigned responsibilities Mat Dunn Chief Financial Officer Finance, Legal, Procurement + Supply Chain Cliff Cohen Chief Information Officer Technology Nick Beighton Chief Executive Officer Robert Birge Chief Growth Officer Marketing + Insights Jo Butler Chief People Officer People + Space & Business Services Patrik Silén Chief Strategy Officer Strategy + Change & Transformation José Antonio Ramos Chief Commercial Officer Retail, Trading, Buying & Design 28 asos#2905. Develop our effective, efficient and sustainable model Fashion with integrity is the backbone of our business and alignment to our principles is non-negotiable FASHION WITH INTEGRITY لمه 8 Launch of the ASOS Design Circular Collection Leading the UK garment industry in raising sourcing standards 75% of all ASOS operations are powered by renewable energy Aim to achieve full transparency on the Topshop brands supply chain by calendar year end Joined the British Retailer Consortium's Net Zero Carbon roadmap and committed to setting Science- Based Targets DEZA RE EVA 29 asos#30DO Tooooll CHI £ O In summary Exceptionally strong first half: strong retail sales growth, record profitability and net cash position Solid executional delivery with continued discipline and strong operational grip Increasing focus and investment to support global growth opportunity Well positioned to capture demand for event-led product when lifestyles normalise; retaining caution on near-term consumer ou FY21 expectations increased in line with first half performance; outlook for the second half unchanged despite pricing investment Integration of Topshop, Topman, Miss Selfridge and HIIT on track 30 asos#31Q&A Please type your question into the question box 31 asos