Asos Results Presentation Deck

© 2022 asos This plans is reflected in our critical KPIs for FY23 ▲ Gross margin expansion through tighter stock buy, greater full-price mix, with freight costs reducing (freight costs reducing by c.100bps) ▲ A lighter cost structure with expected cost savings accelerating over the next 12 months ▲ These measures will more than offset the impact of anticipated inflationary headwinds and the cost of elevated return rates ▲ There will be a non-cash write-off of inventory, which will be treated as an adjusting item for adjusted EBIT and expected to be £100m-£130m. ASOS will begin to operate with lower stock levels in H2 due to the lead times on orders and deliveries There will also be c.£40m of adjusting items relating to our change programme and Topshop Brand amortisation H1 loss driven by the usual profit phasing and exacerbated by elevated markdown to clear stock resulting from change in commercial model, with contractual freight decline and cost mitigations expected to benefit mostly in H2 ▲ Capex expected to be £175m-£200m, below the previously guided range of £200m-£250m in the mid term Expected free cash flow in the range of (£100m) - £0m and expected to return to cash generation in H2 as the new commercial model begins to have a positive impact on gross margin and working capital and the cost reduction impact accelerates ▲ To navigate the continued macroeconomic volatility, ASOS has agreed additional financial flexibility through the renegotiation of core banking covenants, with cash and committed facilities of over £650m at year end 24 asos

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