8 April 2021

ASOS plc

Global Online Fashion Destination

Interim Results for the six months to 28 February 2021

ASOS delivers record results driven by exceptional execution

Summary financial results

Six months to

Six months to

CCY2

£m1

28 February

29 February

Change

Change

2021

2020

Group revenues3

1,975.9

1,596.8

24%

25%

Retail sales4

1,919.9

1,551.4

24%

25%

Gross profit

890.0

750.0

19%

Gross margin

45.0%

47.0%

(200bps)

Adjusted EBITDA5

180.8

95.3

90%

Adjusted EBITDA Margin

9.2%

6.0%

320bps

Adjusted EBIT6

116.2

34.6

236%

Adjusted EBIT Margin

5.9%

2.2%

370bps

Reported profit before tax

106.4

30.1

253%

Adjusted profit before tax7

112.9

30.1

275%

Diluted earnings per share

81.9p

27.5p

198%

Net cash/(debt)8

92.0

(163.6)

1All numbers subject to rounding throughout this document, 2Constant currency is calculated to take account of hedged rate movements on hedged sales and spot rate movements on unhedged sales, 3Includes retail sales, delivery receipts and third party revenues, 4Any reference to total or retail sales throughout the document is on a constant currency basis, 5Adjusted EBITDA is the reported earnings before interest, tax, depreciation, amortisation, share-based payments charges and Topshop brands acquisition and integration one-off costs (please see full reconciliation on page 12), 6Adjusted EBIT is the reported earnings before interest, tax, Topshop brands acquisition and integration one-off costs and amortisation of acquired intangible assets (please see full reconciliation on page 12), 7Adjusted profit before tax is the reported profit before tax, Topshop brands acquisition and integration one-off costs and amortisation of acquired intangible assets (please see full reconciliation on page 12), 8Net cash/(debt) is the cash and cash equivalents less borrowings

Results Summary

  • Active customer base increased to 24.9m, up 1.5m over six months. Good growth in new customers balancing fewer event-led reasons for existing customers to shop
  • Total sales growth of 25% reflecting a strong performance throughout the period underpinned by excellent operational delivery
  • Exceptional UK performance with 39% sales growth and good growth in international territories; EU +18%, US +16%, ROW +16%
  • Gross margin down 200bps driven by increased freight costs due to COVID-19 disruption, foreign exchange movements and continued 'lockdown' category product mix
  • Adjusted EBITDA margin up 320bps to 9.2% reflecting net COVID-19 benefit and continued underlying improvements, alongside disciplined reinvestment into customer momentum
  • Record adjusted PBT7 of £112.9m including net COVID-19 benefit (£48.5m)
  • Net cash position of £92.0m, reflecting robust underlying cash generation, £266.0m investment in Topshop brands and the anticipated working capital unwind, following COVID-19 delays to peak stock build

Strategic & Operational Highlights

  • Topshop brands integration progressing to plan as part of our strategy to further develop the ASOS brands:
    • Successful customer relaunch on 22February within 3 weeks of completion
    • Great early customer momentum
    • One-offacquisition and integration costs now expected to be c.£10m (reduced from c.£20m)
  • ASOS platform continues to strengthen, enhancing customer choice and product availability:
    • Investment in pricing, principally in Europe, to further strengthen customer proposition
    • Flexibility in shaping product offer to demand supported further outperformance of 'lockdown' product
    • Flexible fulfilment progressing to plan; further deployment of unified stock pool between UK and US ahead of further rollout across ASOS and subsequent development of partner fulfilment capabilities by the end of this calendar year
    • Continued platform expansion with 120 new brands added, over 100 new delivery enhancements and 18,300 new Click and Collect locations to expand total Click and Collect offering to 166,000 locations globally
  • Exceptional executional delivery with continued discipline and strong operational grip
    • Global infrastructure development on track, fit out commenced on Lichfield fulfilment centre, US automation on track for H2 FY23
    • Following a multi-year development programme and an extended period of parallel run, Truly Global Retail (TGR) system launched successfully, delivering significantly enhanced global retail planning and pricing capability and provides an essential foundation for our flexible fulfilment aspirations

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Outlook

  • Increasing focus and investment to support global growth opportunity against backdrop of acceleration in online penetration and consolidation in fashion retail
  • Well positioned to capture demand for event-led product when lifestyles normalise; retaining caution on near term consumer outlook driven by uncertain 20-something economic prospects, timing of global restrictions lifting and possible further COVID-19 peaks
  • FY21 expectations increased in line with first half performance; outlook for the second half unchanged despite pricing investment to enhance our consumer proposition and support long-term competitiveness
  • Expect second half to be cash generative driven by underlying performance, continued capex discipline and supported by our normal working capital cycle

Nick Beighton, CEO, commented:

"We are delighted with our exceptional first-half performance and proud of the work our teams have put in to achieve this. These record results, which include robust growth in sales, customer numbers and profitability, demonstrate the significant progress we have made against all of our strategic priorities and the strength of our execution capability. The swift integration of the Topshop brands and the impressive early customer engagement is also especially pleasing.

"Looking ahead, while we are mindful of the short-term uncertainty and potential economic consequences of the continuing pandemic, we are confident in the momentum we have built, and excited about delivering on our ambition of being the number one destination for fashion-loving20-somethings."

2

Investor and analyst meeting:

There will be a webcast for investors and analysts that will take place at 8.30am, 8 April 2021. To access live please join the following link https://event.sparq.me.uk/asos-hy-results/or dial +44 203 051 2874, and use Meeting ID: 872 6488 6754. Q&A will be run via live video on Zoom, for conference call attendees a text question option will be offered.

A recording of this webcast will be available on the ASOS Plc investor centre website later today: http://www.asosplc.com/investors.aspx

For further information:

ASOS plc

Tel: 020 7756 1000

Nick Beighton, Chief Executive Officer

Mat Dunn, Chief Financial Officer

Alison Lygo, Investor Relations

Taryn Rosekilly, Investor Relations

Website:www.asosplc.com/investors

Headland Consultancy

Tel: 020 3805 4822

Susanna Voyle / Stephen Malthouse / Fay Rajaratnam

JPMorgan Cazenove

Tel: 020 7742 4000

Bill Hutchings / Mika Niskanen

Numis Securities

Tel: 020 7260 1000

Alex Ham / Jonathan Wilcox / Tom Jacob

Forward looking statements:

This announcement may include statements that are, or may be deemed to be, "forward-looking statements" (including words such as "believe", "expect", "estimate", "intend", "anticipate" and words of similar meaning). By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances, and actual results may, and often do, differ materially from any forward-looking statements. Any forward-looking statements in this announcement reflect management's view with respect to future events as at the date of this announcement. Save as required by applicable law, the Company undertakes no obligation to publicly revise any forward-looking statements in this announcement, whether following any change in its expectations or to reflect events or circumstances after the date of this announcement.

Background note

ASOS is an online retailer for fashion-loving20-somethings around the world, with a purpose to give its customers the confidence to be whoever they want to be. Through its market-leading app and mobile/desktop web experience, available in ten languages and in over 200 markets, ASOS customers can shop a curated edit of 85,000 products, sourced from 850 of the best global and local third-party brands and its mix of fashion-ledin-house labels - ASOS Design, ASOS Edition, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge and HIIT. ASOS aims to give all of its customers a truly frictionless experience, with an ever-greater number of different payment methods and hundreds of local deliveries and returns options, including Next-Day Delivery and Same-Day Delivery, dispatched from state-of-the-art fulfilment centres in the UK, US and Germany.

ASOS' websites attracted 248.6m visits during February 2021 (February 20201: 214.1m) and as at 28 February 2021 had

24.9m active customers2 (29 February 2020: 22.3m), of which 7.8m were located in the UK and 17.1m were located in

international territories (29 February 2020: 6.8m in the UK and 15.5m internationally).

1Restated visits, previously reported number 215.4m; visits for February 2020 include an extra day, on a like for like basis February 2020 visits would have been 206.7m, 2Defined as having shopped in the last 12 months as at 28/29 February

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ASOS plc ("the Group")

Global Online Fashion Destination

Interim Results for the six months to 28 February 2021

Overview

ASOS delivered a strong performance in the first half of the year with total sales growth of 25% and a record adjusted Profit Before Tax of £112.9m, an increase of £82.8m on the previous half-year.

In the first half of the year, we have seen a continuation of the product mix shift away from occasion wear into casualwear. ASOS has undoubtedly been a beneficiary of the consumer shifts accelerated by COVID-19, particularly in the UK and most of Europe. We are pleased with our speed and agility in ensuring relevant assortment and availability, which has enabled us to capture strong growth in key 'lockdown' categories. ASOS is, however, famous for its 'going-out' and occasion wear and this has presented a significant headwind for the business in our US and ROW markets, which have a higher mix of ASOS Design, and we subsequently saw more muted growth in these areas. We continued to target awareness and have upweighted our marketing investment to drive engagement and stimulate demand.

During the period, we were presented with the compelling opportunity to acquire four iconic brands that are a completely natural fit with ASOS. Topshop, Topman, Miss Selfridge and HIIT are strong brands that resonate with our core 20- something fashion-loving consumers and have dropped seamlessly on to our platform. We know we can leverage our market-leading capabilities to grow these brands and we are confident in achieving strong financial returns with a double- digit return on capital in the first full year of completion. Finally, our 100-day plan is progressing well with all key milestones delivered to date.

As our strong results indicate, we are, 12 months on from the start of the pandemic, a more agile, flexible and resilient organisation, with strong operational grip and robust cost discipline. We continue to foresee economic disruptions and sporadic lockdowns as countries around the world roll- out vaccination programmes and react to new variants. However, we are confident in our ability to navigate the uncertainty ahead and continue to progress towards being the number one destination for fashion-loving20-somethings worldwide.

Financial Performance

ASOS delivered another exceptionally strong half, with record adjusted Profit Before Tax of £112.9m (excluding Topshop, Topman, Miss Selfridge and HIIT one-off acquisition and integration costs and amortisation of acquired intangible assets). After backing out net COVID-related tailwinds we have doubled our profitability. Adjusted EBIT grew to £116.2m which represented an adjusted EBIT margin of 5.9%, an improvement of 370bps year on year. Our underlying profitability continued to benefit from our focus on the removal of non-strategic costs and we are on track to deliver the benefits we expected at the start of the year.

COVID-19 continued to impact our performance with returns-related tailwinds in warehouse and distribution costs driving improvements in our operating cost efficiency, although these benefits were partially offset by an increase in freight costs and less favourable product mix resulting in a lower gross margin. Overall we saw a net COVID-19 tailwind of £48.5m - a benefit which we expect to reverse once we see restrictions lifted on the hospitality and tourism sectors. Whilst there remains a level of uncertainty as we progress through the year, we expect to see returns rates normalise as we start to see the removal of social restrictions, particularly in markets where vaccine roll-outs are proceeding as planned

We closed the half in a net cash position of £92.0m, reflecting good underlying cash generation, together with investment into the Topshop brands acquisition (£266.0m) and the anticipated working capital unwind. Capital expenditure totalled £64.7m (excluding Topshop brands acquired assets and IFRS16 capitalised leases) as we invested in the final stages of TGR development, automation of the Euro hub, our new fourth fulfilment centre in Lichfield and additional projects across our technology platforms. Looking to the remainder of the year, our capex guidance for the full year remains unchanged at c.£190m. Accordingly, we expect the second half to be cash generative, driven by our underlying performance and continued discipline in capital expenditure, together with support from our normal working capital cycle.

4

Performance Across the Five Strategic Pillars

Our vision is to be the number one destination for fashion-loving20-somethings worldwide, and in order to realise this we have developed five strategic priorities designed to shape our focus across the business over the next few years. These five strategic priorities span our business, shape our intention in each area and are defined as follows:

  1. We will become a truly global retailer by enhancing our systems, infrastructure and teams for global trading and accelerating growth in key markets to expand our local and overall scale
  2. We will grow our unique ASOS brands, continuing to penetrate into under-served segments of the market whilst continuing to improve our speed to market and price propositions
  3. We will enhance our flexible and multi-brand platform; partnering with brands to expand high potential categories, implementing flexible fulfilment capabilities to expand customer choice and continuing to improve the relevance of our customer proposition and tech platform
  4. We will improve our inspiring and personalised customer experience through the application of data and artificial intelligence to deliver the most engaging customer experience
  5. And lastly, we will support our growth through an effective, efficient and sustainable operating model, continuing to evolve and develop our culture, organisation, and talent whilst further driving responsible fashion into everything we do

1. Becoming a Truly Global Retailer

In order to become a truly global retailer, it is essential to have the right systems and infrastructure in place. Our TGR system has been developed to replace our legacy technology infrastructure with cutting edge planning and retail execution capability to support our global growth ambitions. We successfully launched TGR across the business on 23 March 2021, which involved a full overhaul of the internal ASOS operating systems across all areas of the business. The new tools and processes will allow us to significantly improve the way we plan and trade our products so we can offer the best choice to our global customers. More accurate, relevant and timely information will enable better decision-making, and the overall system design supports better pricing flexibility in each of our markets, allowing us greater agility and pricing speed by market. TGR is also an essential enabler for our flexible fulfilment aspirations.

We are further supporting our global growth ambitions through appropriate capacity expansion. In October 2020, we announced that we will be opening Lichfield Fulfilment Centre in the UK which will support our UK and ROW territories and we are on track to deliver this as originally planned. This facility will initially go live as a manual facility with a total stockholding of 6m units and will ultimately be automated in H2 of FY23. Automation will expand available capacity to 17m units. In line with our announcement in our P1 trading statement, we are also pleased to confirm that the automation of the US warehouse in Atlanta will be completed in H2 of FY23, which will increase stock capacity by c.50% to 15.5m units in total and a warehouse throughput of 3.1m units per week. This will expand total net sales throughput in excess of £4bn to more than £6bn, representing a £2bn net sales throughput capacity expansion over the next 2 years.

2. Growing our Unique ASOS Brands

Having announced the acquisition of four iconic brands in February: Topshop, Topman, Miss Selfridge and HIIT, we have undertaken a comprehensive 100-day plan, developed prior to completion of the deal, covering all aspects of the business including people, finance, legal and warehousing. We are delighted with our integration progress to date, and with the successful completion of several key milestones since we announced the acquisition including: ASOS web pages and app content going live, the completion of critical data transfers, successful customer relaunch supported by multi-channel marketing, automatic website re-direct and the successful extraction of stock and processing thereof. We continue to focus on integrating these brands into our business to ensure seamless integration within 100 days post deal completion.

Since acquisition, we have seen a significant step change in site traffic to these brands post customer relaunch on 22 February 2021, with a 226% increase in traffic on launch day alone, driving strong sales momentum across Topshop, Topman, Miss Selfridge and HIIT. The US has seen the strongest growth rates along with the UK and Germany, supported by strong social media campaigns - of which our two TikTok launch campaigns were the most successful, with a combined reach of over 200m and almost 3bn video views. We know that these brands resonate well with our consumers in these three countries and are pleased to see this translate into strong initial growth momentum on our platform, in line with our expectations.

ASOS Design continued to show pleasing growth overall despite the continued shift towards 'lockdown' categories. Excluding the mix effect of a shift away from 'going out' categories, ASOS Design delivered 24% growth year on year, underlining our agility and flexibility to shift into casual and activewear categories. Supported by this shift in consumer

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ASOS plc published this content on 08 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 April 2021 06:05:04 UTC.