Investor Presentaiton

AGENDA FOR CHANGE CONTINUED BOOHOO GROUP PLC ANNUAL REPORT AND ACCOUNTS 2021 / STRATEGIC REPORT RAISING STANDARDS ACROSS OUR SUPPLY CHAIN MAPPING AND AUDITING The group continues to map and audit the UK supply chain, a piece of work that was already underway in February 2020 and was accelerated in July 2020. To increase the capacity and speed at which audits were completed, the group's external supply-chain auditors, Verisio, increased their auditing teams and presence 'on the ground'. A new Head of Ethical Compliance, Head of Product Compliance and a Senior UK Ethical Sourcing Manager were appointed to strengthen the UK in-house team, and Sir Brian Leveson PC has appointed a team of investigators led by Tim Godwin OBE, ex Deputy Commissioner of the Metropolitan Police, to assist him. By March 2021, this team collectively had audited the majority of suppliers in the UK at least twice. These audits were unannounced and included visits conducted in the evening and weekends to investigate allegations of illegal working hours. As well as accompanying the boohoo compliance team and Verisio on audits, Tim Godwin's team also undertook 'deep dives' and analyses into the corporate structures to identify directors and people exercising significant control, who were then interviewed. The government also deployed teams of investigators from the GLAA, NCA, DWP and HMRC. The group has been working closely with the Director of Operations for the GLAA who, on 21 April 2021, confirmed that they had uncovered no evidence to support claims of modern-day slavery in the boohoo supply chain. Every supplier was provided with the opportunity to remedy issues identified during their audit process and to implement additional measures required by the business to provide more protection to workers, including adoption of biometric clocking-in systems. The has been encouraged by the group actions of many suppliers who have demonstrated that they fully support the approach taken by the and the values group they share to improve the UK garment sector. CONSOLIDATION One of Alison Levitt's key recommendations was to consolidate the group's UK supply chain. The insight from the auditing and mapping process has led to the group's ceasing to trade with some suppliers who were unable or unwilling to demonstrate the required level of transparency. Each supplier, with whom we have ceased business relations, was given numerous warnings and opportunities to remedy issues, but some failed to do so. It is key to the group's policy that suppliers are given an opportunity to remedy any issues an audit may bring to light. Unauthorised subcontracting was identified as a key problem in the Levitt review. To resolve this and prevent reoccurrence, the in-house ethical compliance team worked side-by-side with suppliers to support them in bringing their nominated Cut Make and Trim ('CMT') units in-house. This shift in approach ensures that ownership, responsibility and accountability sits with the direct supplier while critically- workers are fully protected by the group's code of conduct. The group remains committed to sourcing in Leicester and the UK, and growing volumes with good and compliant suppliers. The FY21 volume of units sourced in Leicester remains at levels of growth consistent with the previous year. THE GARMENT AND TEXTILE WORKERS' TRUST The Trust's founding mission will be to create positive and lasting change for the benefit of the wider industry - providing guidance, advocacy and remedy to anyone working in the garment industry in Leicester, whether they work for one of boohoo's suppliers or not. The purpose of the Garment and Textile Workers' Trust has been informed from months of ongoing engagement with local and government stakeholders. In addition to seeking guidance from individual experts and NGOs, the group hosted a consultation workshop, where over 30 different organisations and individuals were invited to share their insights. In its first year, we envisage that the Trust will be grant giving, complementing rather than competing with existing charities and community and NGO initiatives in Leicester. As it grows and develops, the trustees will look to expand on the remit and deliver a more comprehensive package of services for garment workers in the city. This could include community initiatives, such as outreach workers and educational opportunities, such as scholarships. The five founding trustees reflect a broad spectrum of stakeholders with group NGO, enforcement, local government and local community representation. The trustees are: Tim Nelson, International Development Director for Hope for Justice David Lindley, QPM Deputy Lieutenant Councillor Luis Fonseca, Leicester Alison Tripney, Head of Community, Leicester City Football Club . Cheryl Chung, Head of Corporate Affairs, boohoo group A CENTRE OF MANUFACTURING EXCELLENCE In June 2020, the group finalised the purchase of a site to establish a manufacturing facility in Leicester. The site on Thurmaston Lane will be a world-class, end-to-end garment production facility for The aims of the site include: group. establishing a state-of-the art production facility in Leicester that will provide a benchmark for the sector; the ensuring there is a detailed understanding of our ability to produce garments at our price points ethically, safely and legally; and creating great jobs and adding value to the community of Leicester The group is working with all education providers across Leicester to understand how our local presence can support their students. A4C ROADMAP boohoo July 2020 group plc Appointed Alison Levitt QC to undertake independent review of boohoo group • Meeting with Deputy Mayor and senior team from Leicester City Council Aug 2020 . . . New Head of Ethical Compliance and Head of Sustainability start Supply chain auditors Verisio given additional resources to accelerate audit programme Work with Slave-Free Alliance to strengthen our whistleblowing policy October 2020 • New non-executive director, Sean McCabe, appointed Agenda for Change programme launched, committing the boohoo group to implement all 17 recommendations in the Levitt review Bureau Veritas begin mapping and auditing international suppliers Development of new 'Responsible Purchasing Practices' begins Work a new portal to manage all interactions with suppliers Agenda for Change and supply chain updates mandated at board meetings November 2020 Sir Brian Leveson PC appointed to oversee Agenda for Change New Sustainability Manager starts New Risk Committee established Announce exclusion of 64 suppliers from approved supply chain Provided evidence to the Business, Energy & Industrial Strategy Select Committee on Xingjian February 2021 • New boohoo group Modern Slavery Statement published • New requirement for suppliers to bring CMT units in-house Consultation to inform establishment of Garment and Textile Workers' Trust . Became a member of the Unseen National Modern Slavery helpline and portal New whistleblowing escalation process boohoooo September 2020 . New Director of Responsible Sourcing starts Alison Levitt QC review published in full Begin work with Apparel & General Merchandise Public and Private Protocol New Supply Chain Committee established 00 December 2020 New supplier app launched, strengthening our purchasing procedures Sir Brian Leveson PC appoints new investigative and inquiry team, led by Tim Goodwin OBE, to conduct further checks on suppliers Provided evidence to the Environmental Audit Committee Modern slavery training mandated for managers and above January 2021 Sir Brian's first report to boohoo group board published in full Internal communications update business progress on Agenda for Change programme Engagement with local community partners in Leicester, hosted by Leicester City Football Club charitable foundation New Head of Product Operations starts Listening sessions with our buying and merchandising teams to inform Responsible Purchasing Practices May 2021 • Launch our first economic impact report Launch our Responsible Purchasing Practices: Publish a new sustainability report, charting progress September 2021 Publish our international supply chain Open new manufacturing centre of excellence in Leicester March 2021 New Senior UK Ethical and Compliance Manager starts New Head of Ethical Product Compliance starts Publish our UK supply chain Launch new group sustainability strategy Sir Brian Leveson's second board report published Andrew Reaney delivers keynote address at Draper's 2021 sustainability conference Sign contracts with Cotton Connect and Better Cotton Initiative to expand sustainable cotton sourcing . Around 500 audits completed since July 2020 44 For those of us in Leicester who take pride in the clothing manufacturing industry, the last year has been really tough. We are grateful for boohoo sticking by UK manufacturers and taking a stance with an Agenda for Change. With our joint efforts, all the good suppliers are confident that this will start building Leicester to be a great manufacturing hub. We hope that the work boohoo has done gives other retailers the confidence to begin buying British once again." Sajid Esa 5TH AVENUE CLOTHING 22 || 23