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Investor Presentaiton

BOOHOO GROUP PLC ANNUAL REPORT AND ACCOUNTS 2021 CORPORATE GOVERNANCE REPORT Mahmud Kamani EXECUTIVE CHAIRMAN 4 MAY 2021 offer // GOVERNANCE I'M PLEASED TO PRESENT THIS YEAR'S CORPORATE GOVERNANCE REPORT. As Group Executive Chairman it is my responsibility to ensure that boohoo has an effective board and corporate governance framework. Following the publication of the Independent Review by Alison Levitt QC, we made a commitment to adding further independent experience, increasing oversight on matters of compliance and business practices and adopting higher standards of corporate governance. We have endeavoured to do this in a way that is transparent and provable by our Agenda for Change, which will build a sustainable foundation for the long-term success of the business and for the benefit of our stakeholders. The board has worked hard during the year to implement our Agenda for Change. We recognise there is further work to be done and I personally undertake that this will remain a key focus and priority throughout 2021 and beyond. A summary of the considerable improvements to our governance framework is detailed below. INDEPENDENT OVERSIGHT On 26 November 2020, the group announced the appointment of Sir Brian Leveson PC to provide independent oversight of the Agenda for Change and committed to publishing progress reports. In his reports, Sir Brian Leveson acknowledges the pace the group is making towards affecting change and these reports can be viewed in full on our group website. The board also appointed KPMG as consultants to advise and monitor the implementation and governance of the Agenda for Change programme. STRENGTHENING GOVERNANCE WITH KEY APPOINTMENTS The board is committed to additional expertise and independent challenge through the appointment of non-executive directors. Shaun McCabe was appointed on 17 November 2020 as an independent non-executive director and Chair of the group's Audit and Risk Committees. Shaun's full biography can be found on page! 51 of this report. We are also in the process of recruiting a second independent non-executive director experienced in dealing with environmental, social and governance ('ESG') matters. RISK MANAGEMENT The board takes ultimate responsibility for the effectiveness of risk management within the group and acknowledges that it must satisfy itself that the significant risks faced by the group are being managed appropriately. We have implemented a new governance framework to ensure effective monitoring and reporting of risks across the group going forwards. We have also constituted a new risk committee to enable better identification and closer monitoring of risk at board level. Further information on risk management can be found on page 34 of this report. EXECUTIVE REMUNERATION We have redesigned the executive directors' remuneration policy to align the interests of the executives with stakeholders, including the introduction of performance conditions linked to ESG criteria. This is an important part of the board's response to the findings of the Independent Review and the successful implementation of the corporate governance aspects of our Agenda for Change programme. BOARD EVALUATION In February 2021, the board participated in an external evaluation of its performance to assess and address any areas for development through an independent lens. The aim of the evaluation was to identify ways to enable the board to achieve its full potential and operate more effectively. Looking ahead, I will commission a further externally facilitated board evaluation by the end of the next financial year to consider the effectiveness of these changes, implemented following the initial review. BOARD EFFECTIVENESS AND DEVELOPMENT This year, as part of the board's commitment to ensuring the highest standards of governance for the group, each board member will attend training on the practical application of the QCA Corporate Governance Code and issues raised in the Independent Review, including how to operate as an effective board as well as latest trends and developments in areas such as the ESG agenda and risk management. GOVERNANCE FRAMEWORK Under my leadership, it is the responsibility of each member of the board to ensure that we uphold the highest standards of corporate governance. We embraced the Independent Review as a critical, but fair, assessment of our business practices and governance framework. Whilst we remain on track to deliver the Agenda for Change, and by doing so improving our governance framework, we recognise that it will take time to demonstrate real change and rebuild stakeholder trust. We will continue to focus on delivering the Agenda for Change and maintaining momentum to make boohoo a better and more responsible business. We will be transparent about the progress we're making through open and regular communication with our stakeholders. Mahmud Kamani GROUP EXECUTIVE CHAIRMAN CHAIRMAN'S GOVERNANCE STATEMENT 52 53
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