Frasers : Annual Report & Accounts

FRASERS GROUP PLC

ANNUAL

REPORT & ACCOUNTS 2023.

FRASERS GROUP PLC ANNUAL REPORT 2023

ABOUT FRASERS GROUP

Frasers Group started as a small store in Maidenhead in 1982 and from there, grew to become a global powerhouse.

As the business evolved, 2019 saw the re-brand of Sports Direct International to Frasers Group PLC; a reflection of the Group's growth and change in market identity.

Led by Chief Executive Michael Murray, the business is set on a formidable upwards trajectory as it continues to expand with its pioneering approach to retail. Frasers Group provides consumers with access to the world's best sports, premium and luxury brands with a vision to build the planet's most admired and compelling brand ecosystem. With over 32,000 employees, Frasers Group's workforce is incredibly motivated and inspired to drive the success of the Group.

As a leader in the industry, Frasers Group is committed to rethinking retail by driving digital innovation and providing unique store experiences to its consumers globally.

MISSION STATEMENT

WE ARE BUILDING THE PLANET'S MOST ADMIRED AND COMPELLING BRAND ECOSYSTEM.

BUSINESS ETHOS

We do not run the business for the short term but work to ensure we deliver shareholder value over the medium to long-term, whilst adopting accounting principles that are conservative, consistent and simple.

OUR IMPACT SINCE 2007

We became a listed public company in 2007. In the years since we floated, the Group has greatly contributed to the British economy. This includes:

£250m

Approx. £250m paid in colleague share bonuses

32,000

Have approx. 32,000 colleagues worldwide, approx. 21,000 of which are in the UK

£2,470m

Contributed approx. £2,470m in VAT and Duty

£800m

Contributed approx. £800m in UK Corporation Tax

£220m

Contributed approx. £220m in NI employer contributions

GROUP

OUTLOOK

We expect further strong profit progress during FY24 as our FY23 momentum continues. The new financial year has started well, especially at Sports Direct, which continues to benefit from the strengthening relationships with key brand partners. We also expect further good progress on acquisition integration synergies and cost mitigation exercises. Additionally, we anticipate significantly lower levels of property profit than those delivered in FY23 (£95.4m). Based on these factors, we expect FY24 APBT will be in the range of £500m-£550m which would represent strong underlying trading profit progression.

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CONTENTS

01. HIGHLIGHTS AND OVERVIEW

1. About Frasers Group

1. Group at a Glance

1. Financial Highlights

1. Strategic & Operational Highlights

02. STRATEGIC REPORT

1. Chair's Statement

1. Our Business

1. Our Strategy

1. Key Performance Indicators

1. CEO Report and Business Review

1. Financial Review

1. Non-FinancialInformation
2. Workers Representative Report
3. ESG Report (Including TCFD)

1. S172 Statement

1. Principal Risks and Uncertainties

1. Viability Statement

03. GOVERNANCE

1. Corporate Governance Report

1. The Board

1. Nomination Committee Report

1. Directors' Remuneration Report

1. Audit Committee Report

1. Directors' Report

1. Directors' Responsibility Statement

04. GROUP FINANCIAL STATEMENTS

116 Independent Auditor's Report

to the Members of Frasers Group Plc.

1. Consolidated Income Statement
2. Consolidated Statement of Comprehensive Income
3. Consolidated Balance Sheet
4. Consolidated Cash Flow Statement
5. Consolidated Statement of Changes in Equity
6. Notes to the Financial Statements

05. COMPANY FINANCIAL STATEMENTS

1. Company Balance Sheet
2. Company Statement of Changes in Equity
3. Notes to the Company Financial Statements

06. GLOSSARY

226 Consolidated Five Year Record and Alternative Performance Measures

1. Company Directory
2. Shareholder Information

FRASERS GROUP PLC ANNUAL REPORT 2023

GROUP AT A GLANCE

UK SPORTS RETAIL

55.4%

Total Group Revenue

£3,080.6m

16.7%

PREMIUM LIFESTYLE

21.8%

Total Group Revenue

£1,212.9m

14.8%

UK Sports Retail includes core sports retail store operations in the UK, plus all the Group's sports retail online business (excluding Sportland in the Baltics, Game Spain, SportsMaster, Sports Direct Malaysia, Bobs and EMS), the gyms, Studio Retail, the Group's Shirebrook campus operations, retail store operations in Northern Ireland, Evans Cycles, GAME UK and Coventry Arena.

Our store footprint is significant, with 812 stores across the UK, totalling approximately 6.9m sq.ft. of retail space. The majority of stores are operated under the Sports Direct, USC, Evans Cycles and GAME fascias.

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The Group's Premium Lifestyle division offers a broad range of clothing, footwear and accessories from leading global contemporary and luxury retail brands through our fascias in the UK: FLANNELS, Frasers, House of Fraser, Jack Wills and Sofa. com, Cruise, Van Mildert and the fashion brands acquired from JD Sports, along with their related websites. The majority of these fascias operate as multi-brand premium and luxury retail destinations and are focused on providing fashion conscious consumers with high-end and on-trend products.

The segment is supported by our Group-wide centralised commercial and support functions, giving the benefits of scale and operating efficiencies to each fascia. The segment is a significant part of the Group's new generation retail concept and as such, in certain locations, Premium and Lifestyle stores are co-located alongside

our Sports retail stores to benefit from increased customer footfall and operating synergies.

The total Premium Lifestyle store count is 221 stores and approximately 3.6m sq.ft. of retail space.

FRASERS GROUP PLC ANNUAL REPORT 2023

INTERNATIONAL RETAIL

19.5%	Total
Group Revenue

£1,083.4m

15.2%

International Retail includes all the Group's sports retail stores, management and operations internationally including the Group's international distribution centres in Belgium, Austria, Denmark, Malaysia as well as GAME Spain. It also includes the online businesses relating to SD Malaysia, Game Spain, SportMaster and MySale. During the period the Bob's Stores and Eastern Mountain Sports fascias and their corresponding e-commerce offerings were disposed of.

The total European store count is 597 stores and approximately 4.3m sq.ft. of retail space.

During FY23, management continued to elevate the Group's international stores and work to further tailor the Group's consumer value propositions to our local markets.

WHOLESALE & LICENSING

The Wholesale & Licensing segment operates our globally renowned heritage Group brands (such as Everlast, Lonsdale, Karrimor and Slazenger). The Group's Sports Retail division sells products under these brands in its stores and the Wholesale & Licensing division sells the brands through its wholesale and licensing activities. The Wholesale & Licensing division continues to sponsor a variety of prestigious events and retains a variety of globally recognised celebrities and sporting professionals as brand ambassadors.

The Group's own brands are managed both individually and centrally within this segment. This unique, integrated approach to brand management leverage's the expertise of our people, encourages innovation, and ensures consistency.

3.3%	Total
Group Revenue

£188.3m

12.0%

REVISED SEGMENTAL REPORTING IN FY24

The Group currently intends to revise its segmental reporting based on planned changes in how the Group will report performance and allocate resources going forward.

Following the acquisition of Frasers Group Financial Services Limited (formerly known as Studio Retail Limited) and the launch of the Group's consumer credit offering, Frasers Plus, as well as recent acquisitions of investment property, it is expected to lead to the Group's financial services and property businesses being disclosed as separate reporting segments. The Group currently intends to consolidate UK Sports Retail and Premium Lifestyle within one UK Retail segment. The Wholesale & Licensing segment will be consolidated in the appropriate retail segments. Since these changes have taken place post year-end, it is intended that the revised segmental presentation will take effect from FY24 onwards.

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