Farfetch : Q3 2020 Earnings Presentation

THIRD QUARTER 2020

RESULTS

November 12, 2020

IMPORTANT NOTICE

This presentation and the accompanying oral presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation and the accompanying oral presentation that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our profitability for 2021, as well as statements that include the words "expect," "intend," "plan," "believe," "project," "forecast," "estimate," "may," "should," "anticipate" and similar statements of a future or forward-looking nature. These forward-looking statements are based on management's current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: purchasers of luxury products may not choose to shop online in sufficient numbers; our ability to generate sufficient revenue to be profitable or to generate positive cash flow on a sustained basis; the volatility and difficulty in predicting the luxury fashion industry, in particular in light of COVID-19 and its impact on consumer spending patterns; our reliance on a limited number of retailers and brands for the supply of products on our Marketplace; our reliance on retailers and brands to anticipate, identify and respond quickly to new and changing fashion trends, consumer preferences and other factors; our reliance on retailers and brands to make products available to our consumers on our Marketplace and to set their own prices for such products; our reliance on information technologies and our ability to adapt to technological developments; our ability to acquire or retain consumers and to promote and sustain the Farfetch brand; our ability or the ability of third parties to protect our sites, networks and systems against security breaches, or otherwise to protect our confidential information; our ability to successfully launch and monetize new and innovative technology; our acquisition and integration of other companies or technologies, for example, Stadium Goods and New Guards Group, could divert management's attention and otherwise disrupt our operations and harm our operating results; we may be unsuccessful in integrating any acquired businesses or realizing any anticipated benefits of such acquisitions; our dependence on highly skilled personnel, including our senior management, data scientists and technology professionals, and our ability to hire, retain and motivate qualified personnel; the effect of the COVID-19 pandemic on our business and results of operations, as well as on the luxury fashion industry and consumer spending more broadly, and our ability to successfully implement our business plan during a global economic downturn caused by the COVID-19 pandemic; impact of general economic factors, natural disasters or other unexpected events; Mr. Neves has considerable influence over important corporate matters due to his ownership of us, and our dual-class voting structure will limit your ability to influence corporate matters, including a change of control; and the other important factors discussed under the caption "Risk Factors" in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") for the fiscal year ended December 31, 2019 and in Exhibit 99.2 to our Current Report on Form 6-K filed with the SEC on April 27, 2020, as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC's website at www.sec.gov.

In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. In light of these risks, uncertainties and assumptions, the forward- looking events and circumstances discussed in this presentation and the accompanying oral presentation are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. In addition, the forward-looking statements made in this presentation and the accompanying oral presentation relate only to events or information as of the date on which the statements are made in this presentation and the accompanying oral presentation. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Unless otherwise indicated, information contained in this presentation concerning our industry, competitive position and the markets in which we operate is based on information from independent industry and research organizations, other third-party sources and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from our internal research, and are based on assumptions made by us upon reviewing such data, and our experience in, and knowledge of, such industry and markets, which we believe to be reasonable. In addition, projections, assumptions and estimates of the future performance of the industry in which we operate and our future performance are necessarily subject to uncertainty and risk due to a variety of factors, including those described above. These and other factors could cause results to differ materially from those expressed in the estimates made by independent parties and by us. All subsequent written and oral forward-looking statements attributable to Farfetch, New Guards, their respective boards of directors or any person acting on behalf of any of them are expressly qualified in their entirety by this notice.

This presentation and the accompanying oral presentation include certain financial measures not presented in accordance with the International Financial Reporting Standards ("IFRS") including but not limited to, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Adjusted Revenue, Digital Platform Order Contribution and Digital Platform Order Contribution Margin. These financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to loss after tax, revenue, gross profit or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company's presentation of these measures may not be comparable to similarly-titled measures used by other companies, which may be defined and calculated differently. Reconciliations of these non-IFRS measures to the most directly comparable IFRS measure are provided in the Appendix as applicable.

Certain figures in this presentation may not recalculate exactly due to rounding. This is because percentages and/or figures contained herein are calculated based on actual numbers and not the rounded numbers presented.

2

Q3'20 PERFORMANCE

Strong results demonstrate differentiated platform strategy

USDm	Digital Platform		Brand Platform		In-store	Group
GMV	$674		$112		$11	$798
Adjusted Revenue2	2631		112		11	387
Gross Profit	143		59		7	209
Demand generation expense	(46)		Na		Na	(46)
Order Contribution2	97		59		7	163
% Adjusted Revenue2	36.9%		52.3%		61.1%	42.1%
Technology expense						$(30)
General and administrative						(143)
Adjusted EBITDA2						(10)
% Adjusted Revenue2						(2.7%)

1	Refers to Digital Platform Services Revenue.
2	Non-IFRS financial measures, please refer to reconciliations to IFRS measures in the Appendix.	3

Q3'20 GMV & REVENUE BUILD

USDm

Digital Platform	Digital Platform	1P Digital	3P Digital
GMV	Fulfilment GMV	Platform	Platform	FPS GMV4
$674	$51	GMV1,2	GMV2,3
	100%	100%		3P take rate
drop through	drop through
	Digital Platform	1P Digital Platform	3P Digital Platform
Revenue	Fulfilment
Revenue		Revenue
Revenue

$438	$51
	Digital Platform Services Revenue
	$263

Brand
Platform	In-Store
GMV5	GMV6
$112	$11
100%	100%
drop through	drop through

BrandIn-Store

PlatformRevenue

Revenue5

$112$11

GMV

$798

Adjusted Revenue7

$387

Note: GMV is inclusive of product value, shipping and duties and net of returns, value added taxes and cancellations.
1	GMV from first-party sales, which is equal to Revenue from first-party sales, means revenue derived from sales on our platform of inventory owned by us.
2 Includes Farfetch Marketplace, BrownsFashion.com, Stadium Goods and New Guards brands' e-commerce websites.
3	GMV from third-party sales refers to GMV generated from third-party supply sourced from brands and retailers.
4	Refers to Farfetch Platform Solutions GMV.
5	Includes revenue relating to the New Guards Group operations less revenue from New Guards Group's owned e-commerce websites, direct to consumer channel via Farfetch marketplaces and directly operated stores.
6	Includes GMV from Browns in-store, Stadium Goods in-store and New Guards brands' in-store.	4
7	Non-IFRS financial measure, please refer to reconciliation to IFRS measure in the Appendix.

Q3'20 RESULTS OF OPERATIONS

USDm

																																							Growth
GMV1																			$674											$112	$	11	YoY
																												+62%
																														Growth
Revenue											$263 2					$51		$112		$11		YoY
																														+71%
(Cost of Revenue)																			($171)3
																		($	54)	($4)
Gross Profit																				Gross
										$143		$ 59	$7
													Profit Margin
(Demand generation expense)																			48%
(General and administrative)4
(Technology expense)
Adjusted EBITDA5								($10)
Loss After Tax					($537)
(600)		(400)	(200)	0				200					400		600		800
				Digital Platform			Digital Platform					Brand Platform							In-Store			Group
						Fulfilment

1 GMV is inclusive of product value, shipping and duties and net of returns, value added taxes and cancellations. 2 Refers to Digital Platform Services Revenue.

3 Refers to Digital Platform Services cost of revenue plus Digital Platform Fulfilment cost of revenue.

4 Excludes other items (outside the normal scope of our ordinary activities or non-cash items).

5 Non-IFRS financial measure, please refer to reconciliation to IFRS measure in the Appendix.

Total

$798

$438

($229)

$209

($46)

($143)

($30)

($10)

($537)

5

Q3'20 - DRIVING GMV, REVENUE AND GROSS PROFIT GROWTH

USDm

Group

Brand Platform3 Digital Platform

	GMV		REVENUE 2	GROSS PROFIT
		Adjusted Revenue 1		45.1%	Gross Profit Margin %	47.8%
	$798		$387
$492
	$228				$209
			$115
Q3 19	Q3 20	Q3 19	Q3 20	Q3 19		Q3 20

Digital Platform Services	53.2% Gross Profit Margin %4 54.5%
Revenue

	$674
$420		$156	$263			$143
			$83
Q3 19	Q3 20	Q3 19	Q3 20	Q3 19		Q3 20
		Brand Platform		43.8%	Gross Profit Margin %	52.3%
		Revenue
	$112		$112
$63		$63		$27		$59
Q3 19	Q3 20	Q3 19	Q3 20	Q3 20		Q3 20

Continuing to target Adjusted EBITDA profitability for FY 2021

Note: Q3'19 figures do not include New Guards figures prior to acquisition in August 2019.
1 Non-IFRS financial measures, please refer to reconciliations to IFRS measures in the Appendix. 2 Group Revenue refers to Adjusted Revenue, Digital Platform Revenue refers to Digital Platform Services Revenue and Brand Platform
refers to Brand Platform Revenue. 3 Reported Brand Platform GMV, Revenue and Gross Profit. 4 Digital Platform Gross Profit Margin means Digital Platform Gross Profit calculated as a percentage of Digital Platform Services
Revenue. We provide fulfilment services to Marketplace consumers and receive revenue from the provision of these services, which is primarily a pass-through cost with no economic benefit to us. Therefore, we calculate our Digital	6
Platform Gross Profit Margin, including Digital Platform third-party and first-party gross profit margin, excluding Digital Platform Fulfilment Revenue.

Q3'20 DIGITAL PLATFORM REVENUE & GROSS PROFIT COMPOSITION

USDm

DIGITAL PLATFORM SERVICES REVENUE

$263

$106

$156

$49

$157

$107

	Q3'19		Q3'20
	DP Services third-party revenue		DP Services first-party revenue2
			First-party original3

			DIGITAL PLATFORM GROSS PROFIT
66%	66%
26%	37%
				$143
				$39
$83
$13
$71	$104
			Q3'19		Q3'20
			DP Services third-party gross profit		DP Services first-party gross profit2
					First-party original3
			DP third-party gross profit margin1		DP first-party gross profit margin1,2

1 See slide 7 for the definition of Digital Platform Gross Profit Margin. 2 First-party revenue, first-party gross profit and first-party gross profit margin inclusive of first-party original. 3 First-party original refers to brands	7
developed by New Guards and sold direct to consumers on the digital platform.

Q3'20 DIGITAL PLATFORM ORDER CONTRIBUTION MARGIN

DEMAND GENERATION		DIGITAL PLATFORM ORDER CONTRIBUTION MARGIN1,
	1P DIGITAL PLATFORM GMV (AS A % OF DIGITAL PLATFORM GMV)
	37%

22%	Demand generation
expense as a
	percentage of Digital
18%	Platform GMV	31%
decreased driven by
	incremental
	efficiency, less
	competition, and
	improved utilization
	of low-cost
	channels

8%

7%

12%

Digital Platform Order Contribution Margin improved 563bps since Q3 2019

14%

Q3'19	Q3'20		Q3'19
Demand Generation as a % of Digital Platform Services Revenue		Digital Platform Order
Demand Generation as a % of Digital Platform GMV		Contribution Margin1

Q3'20

1P Digital Platform GMV2 as a % of Digital Platform GMV (excl. fulfillment)

1	Non-IFRS financial measure, please refer to reconciliation to IFRS measure in the Appendix.	8
2	Does not include 1PO (first-party sales of owned brands' products).

GENERAL AND ADMINISTRATIVE ("G&A")1

YoY	-418	Improved due to
Adjusted Revenue
improvement	bps
growing more than the
		G&A expense cost
		base
41%		37%

Q3'20 COST BASE

TECHNOLOGY SPEND2

YoY -516

improvement bps

19%

ADJUSTED EBITDA MARGIN3

Q3'19Q3'20

(3%)

9%

14%

6%

YoY improvement

+1295

bps

Q3'19Q3'20

as a % of Adjusted Revenue3

10%8%

Q3'19Q3'20

Capitalized development costs as a % of Adjusted Revenue3

P&L Technology Spend as a % of Adjusted Revenue3

(16%)

as a % of Adjusted Revenue3

1	Excludes other items (outside the normal scope of our ordinary activities or non-cash items).
2	Technology spend consists of technology expense plus capitalized development costs.	9
3	Non-IFRS financial measures, please refer to reconciliations to IFRS measures in the Appendix.

APPENDIX

Q3'20 TECHNOLOGY SPEND BREAKDOWN

TECHNOLOGY SPEND1 (USDm)

19%

14%

10%

8%

			$23
		$21
		$22	$30
		Q3'19		Q3'20
	Technology P&L expense	P&L Technology Spend as a %		Capitalized development costs
	of Adjusted Revenue2

1. Technology spend consists of technology expense plus capitalized development costs.
2. Non-IFRSfinancial measures, please refer to reconciliations to IFRS measures in the Appendix.

Technology spend1 as a % of Adjusted Revenue2

11

Q3'20 RECONCILIATION OF NON-IFRS MEASURES

USDm	Q3'19	Q3'20
Loss after tax	$ (90)	$ (537)
Net finance expense	11	14
Income tax expense	-	3
Depreciation and amortization	35	54
Share based payments1	32	82
(Gains)/Losses on items held at fair value and	(32)	373
remeasurements2
Other items3	10	1
Impairment losses on tangible assets	-	-
Share of results of associates	-	-
Adjusted EBITDA	$ (36)	$ (10)
USDm	Q3'19	Q3'20
Revenue	$ 255	$ 438
Less: Digital Platform Fulfilment Revenue	(27)	(51)
Adjusted Revenue	$ 228	$ 387

DEFINITIONS

• Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Adjusted Revenue, Digital Platform Order Contribution and Digital Platform Order Contribution Margin are supplemental measures of our performance that are not required by, or presented in accordance with, IFRS. These metrics are not measurements of our financial performance under IFRS and should not be considered as an alternative to loss after tax, revenue or any other performance measure derived in accordance with IFRS.
• Adjusted EBITDA means loss after taxes before net finance expense/(income), income tax expense/(benefit) and depreciation and amortization, further adjusted for share based compensation expense, share of results of associates and items outside the normal scope of our ordinary activities (including other items, within selling, general and administrative expenses, losses/(gains) on items held at fair value and remeasurements through profit and loss, and impairment losses on tangible assets). Adjusted EBITDA provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance.
• We caution investors that amounts presented in accordance with our definitions of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Adjusted Revenue, Digital Platform Order Contribution and Digital Platform Order Contribution Margin may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate such measures in the same manner.

1	Represents share based payment expense.
2	Represents fair value gains on remeasuring the embedded derivative liability associated with convertible senior notes and the Chalhoub put option liability.	12
3	Represents Other Items, which are outside the normal scope of our ordinary activities or non-cash items.

Q3'20 RECONCILIATION OF NON-IFRS MEASURES (CONT'D)

USDm		Q3'19		Q3'20
Digital Platform Gross Profit	$	83	$	143
Less: Demand generation expense		(34)		(46)
Digital Platform Order Contribution	$	49	$	97
USD per share		Q3'19		Q3'20
Earnings per share	$	(0.30)	$	(1.58)
Share based payments1		0.11		0.24
Amortization of acquired intangible assets		0.06		0.09
(Gains)/losses on items held at fair value and
remeasurements2		(0.10)		1.08
Other items3		0.03		-
Impairment losses on tangible assets		-		-
Share of results of associates		-		-
Adjusted EPS	$	(0.20)	$	(0.17)

DEFINITIONS

• Digital Platform Order Contribution is defined as Digital Platform Gross Profit less demand generation expense. Digital Platform Order Contribution is not a measurement of our financial performance under IFRS and does not purport to be an alternative to gross profit or loss after tax derived in accordance with IFRS.
• We believe that Digital Platform Order Contribution is a useful measure in evaluating our operating performance because it takes into account demand generation expense and is used by management to analyze the operating performance of our digital platform for the periods presented. We also believe that Digital Platform Order Contribution is a useful measure in evaluating our operating performance within our industry because it permits the evaluation of our platform productivity, efficiency and performance.
• Adjusted EPS means earnings per share further adjusted for share based payments, amortization of acquired intangible assets, items outside the normal scope of our ordinary activities (including other items, within selling, general and administrative expenses, losses/(gains) on items held at fair value and remeasurements through profit and loss, and impairment losses on tangible assets) and the related tax effects of these adjustments. Adjusted EPS provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted EPS may not be comparable to other similarly titled metrics of other companies.

1	Represents share based payment expense on a per share basis.
2	Represents fair value gains on remeasuring the embedded derivative liability associated with convertible senior notes and the Chalhoub put option liability on a per share basis.	13
3 Represents Other Items, which are outside the normal scope of our ordinary activities or non-cash items on a per share basis.