Ocado Results Presentation Deck slide image

Ocado Results Presentation Deck

Ocado Retail: a closer look at operating performance FY 2020 change restated² (bps) 232 % revenue Gross margin (incl. media) Trunking and delivery costs CFC costs Other operating costs Marketing costs Fees (OSP fee only) Operating contribution Admin costs EBITDA FY 2021 35.9% (11.0)% (7.9)% (0.7)% (1.8)% (3.9)% 10.7% (4.1)% 6.6% 33.6% (10.8)% (7.2)% (0.5)% (1.0)% (3.4)% 10.7% (4.0)% 6.8% -19 -65 -10 -75 -54 10 -31 -22 Strong underlying margin due to unique online model; large range, low waste, value added insight for suppliers. Further benefit from higher order volumes, improved product mix, changes in sourcing arrangements, and cost savings Non repeating Covid costs, offset by investments in labour incentives and Drops per van per week (DPV) of 177 Immaturity of three new CFCs launched in year, operational disruption in Erith and temporary labour incentives. Underlying efficiency improved with Units per Hour (UPH) up to 170², 172 excluding fire disruption Investing in brand and multi channel approach, to drive growth, versus reduced marketing activity in 2020 Significant growth in available capacity with opening of new CFCs in Bristol (1Q), Andover (3Q) and Purfleet (4Q) Investments in platforms and teams made to support growth, partially offset by reduced accounting charge related to management incentive scheme Note: (1) Payment processing costs of £14.5 million (2020: £13.9 million) have been reclassified from distribution costs to cost of sales, to more accurately reflect the nature of these costs. Other operating costs reflect capital recharge elements of fees (2) UPH means average units processed per labour hour at mature sites. Mature sites are Hatfield, Dordon and Erith CFCs (CFC 1, 2, 4). Ⓒ2021 Ocado Group plc. All rights reserved. 9
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