Ocado Investor Day Presentation Deck
Technology Solutions: Capex investments in CFCs deliver strong returns
A CFC is expected to deliver strong returns
Strong returns requires upfront investment
As an example, for a 5 module site:
At least 65% of capex spent before go-live
gross capex cost c£50m for Ocado Group¹
net capex cost c£36m after upfront fees
go live in c. 2yrs after capex starts
o go live with 2-3 modules of capacity
ramp to capacity within 3 years after go-live
O
From which we expect attractive returns
Purfleet on track
22%+ROCE2,3
Excluding benefits of Re: Imagined;
clear line of sight to c30% ROCE
Modules at go-live
(end Year 2)
3
2
Annual capex phasing
Year 2
10x 5
module sites
Year 1
5%
5%
70%
60%
At a steady run rate, phasing is smoothed
Year 3-4
25%
35%
c£500m gross
annual capex
c£360m net
annual capex
(inc. upfront fees)
Some variation in cost can reflect
location specifics (eg. seismic) and size
As sites ramp, these returns will become evident
Note: (1) Before impact of Re Imagined (2) Before allocated central costs (3) ROCE = Run rate EBIT based on mid-term cost targets divided by capex net
of up front fees
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