Investor Presentaiton

REVIEW OF THE BUSINESS CONTINUED BOOHOO GROUP PLC PERFORMANCE BY MARKET UK group, accounting The UK market continues to be the largest for the for 54% of revenue (2020: 55%). Growth of 39% to £945.1 million was strong across all brands, with the three new brands acquired in the prior year augmenting this growth as they built from a low base. Our multi-brand strategy continues to enable us to gain market share in the UK, through our compelling consumer proposition. Gross margin increased from 50.3% to 50.9%, supported by a small increase in basket size and a strong product offering. During the lockdown period, we increased the offering of activewear, loungewear and tops, reacting quickly to the changes in demand from home working, which was highly successful. Return rates have been lower than in the previous year, due to a different mix of product and consumer behaviour during the pandemic. Online shopping clearly benefitted from the lockdown, with strong customer growth continuing and, with a prudent strategy to reduce marketing costs as a percentage of sales, we were able to achieve improved profitability. The convenience of our comprehensive range of customer payment options has also added to customer growth and purchase frequency. REST OF EUROPE It is apparent that the restrictions on movement and the effect of lockdowns in Europe have impacted growth variably at different points in time across the continent, but nevertheless, overall performance was pleasing. Revenue growth of 30% to £244.7 million was good across all brands and all major countries, starting with exceptional growth rates in Q1, resulting from consumers shifting to online shopping during lockdown, and continuing with moderating growth in subsequent quarters. Overall, return rates have been significantly lower than in the previous year, with some resumption to normal levels during easing of lockdowns. Gross margin declined from 58.0% to 56.2%. The group had planned for many months to ensure that it could continue to trade effectively with EU countries after the end of the transition period on 31 December 2020, following Brexit. As a result, operations continued uninterrupted in January and February 2021, although additional customs compliance costs and duty on some products does increase costs moderately. Whilst these costs will continue to provide a modest headwind in the new financial year, the group will look to mitigate these costs, for example, through operational efficiencies. UK GROWTH USA GROWTH +39% RoE +30% +65% RoW +16% 28 ANNUAL REPORT AND ACCOUNTS 2021 / STRATEGIC REPORT USA The group's highest territorial growth rates have been seen in the USA, as the brands' momentum builds and market share increases. PrettyLittleThing, Karen Millen and boohooMAN continued their exceptional growth, whilst boohoo and Nasty Gal grew strongly too. With all brands supported by the success of social media outreach and the compelling customer proposition, group USA revenue increased by 65% to £435.1 million. Return rates have also been significantly lower than in the previous year. Gross margin improved slightly from 59.8% to 59.9%. Increases in basket size and reduced return rates have only partially offset the significant rise in distribution costs caused by the pandemic's impact on carrier capacity. We expect higher distribution costs to continue for some time to come until there is a resumption of a more normal level of air traffic. REST OF WORLD Growth in the rest of the world has been moderate at 16% to £120.4 million, impacted undoubtedly by the delays in the distribution network caused by greatly reduced airfreight capacity. Gross margin declined slightly from 55.8% to 54.9%, a small reduction given the challenging conditions in overseas territories brought about by the pandemic. Airfreight capacity constraints, caused by the pandemic, also increased distribution costs to the more distant markets, and this is expected to continue for some time to come. 29

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