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bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
2
3
bull
bull
bull
bull
bull
bull
bull
bull
4
bull
bull
bull
5
6
bull
bull
bull
bull
7
8
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
9
10
11
bull bull
bull
bull
bull bull
12
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
13
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bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
3
bull
bull
bull
bull
bull
bull
bull
bull
4
bull
bull
bull
5
6
bull
bull
bull
bull
7
8
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
9
10
11
bull bull
bull
bull
bull bull
12
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
13
14
15
16
bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
4
bull
bull
bull
5
6
bull
bull
bull
bull
7
8
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
9
10
11
bull bull
bull
bull
bull bull
12
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
13
14
15
16
bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
5
6
bull
bull
bull
bull
7
8
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
9
10
11
bull bull
bull
bull
bull bull
12
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
13
14
15
16
bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
6
bull
bull
bull
bull
7
8
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
9
10
11
bull bull
bull
bull
bull bull
12
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
13
14
15
16
bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
7
8
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
9
10
11
bull bull
bull
bull
bull bull
12
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
13
14
15
16
bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
8
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
9
10
11
bull bull
bull
bull
bull bull
12
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
13
14
15
16
bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
9
10
11
bull bull
bull
bull
bull bull
12
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
13
14
15
16
bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
10
11
bull bull
bull
bull
bull bull
12
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
13
14
15
16
bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
11
bull bull
bull
bull
bull bull
12
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
13
14
15
16
bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
12
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
bull
13
14
15
16
bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
13
14
15
16
bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
14
15
16
bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
15
16
bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
16
bull
bull
bull
bull
bull
bull
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
17
bull
bull
bull
bull
bull
bull
bull
bull
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
18
bull
bull
bull
bull
bull
bull
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
19
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
20
bull
bull
bull
bull
bull
bull
bull
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
21
bull
bull
bull
bull
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
22
bull
bull
bull
bull
bull
bull
bull
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
23
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
24
bull
bull
bull
bull
bull
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
25
Strong full-price performance
Continued markdown and outlet reduction
Increased COVID-related store closures
Continued pressure in tourist-dependent destinations
Comparable sales
Impact on revenue
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
26
At constant exchange rates
Q4 FY21
vQ4
FY19
Q4 FY21
vQ4
FY19
Americas
Comp +15FP +43
APAC
Comp +17FP +21
Group
Comp -5FP +12
Comp -44FP -40
EMEIA
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
27
H1 FY21 pound1281m -25 -4 -38 -24 pound892m -1 pound878m
H2 FY21 pound1352m +5 +4 +7 -16 pound1466m flat pound1466m
Successfully navigated through COVID with enhanced revenue and earnings quality
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
28
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
29
CO
VID
-19
rel
ated
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
30
Revenue Adjusted operating profit Free cash flow
pound1281m
pound878m
pound1352m
pound1466m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
pound203m
pound51m
pound230m
pound345m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
-pound29m-pound45m
pound95m
pound394m
H1 FY20 H1 FY21 H2 FY20 H2 FY21
Strong cash generation
working capital management and liquidity in place
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
31
On a pro forma basis leverage as at March 2021 would be 04x assuming a pound172m dividend in line with FY19
pound587m pound919m
pound300m
pound464m -pound115m
-pound4m -pound13m -pound300m pound297m
pound297m
March 2020 FCFPre Capex
Capex Investment FXOther RCFRepayment
Bond March 2021
Cash increasepound332m
Cash net of overdrafts amp borrowings
Cash net of overdrafts amp borrowings
RCF
Cash net of overdrafts
pound887m
Cash net of overdrafts pound1216m
Bond
Net debtEBITDA
07x
Net debtEBITDA
01x
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
32
REINVEST FOR ORGANIC
GROWTH
PROGRESSIVE DIVIDEND
POLICY
STRATEGIC
INORGANIC
INVESTMENTS
RETURN EXCESS CASH
TO SHAREHOLDERS
Maintain a strong balance sheet with a solid investment-grade credit rating
Leverage currently stands at 01x and we plan to return to our target range of 05-1x Net DebtEBITDA from FY22
OUR CAPITAL ALLOCATION FRAMEWORK
1 2 3 4
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
FY17 FY18 FY19 FY20 FY21
FCF pre capex Cash conversion
Average 103
FY17 FY18 FY19 FY20 FY21
Capex Dividend Strategic investments Share buy back
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
33
Gross Margin
Gross margin underpinned by
full-price strength
Variable costs
Rise in line with sales
Consumer facing amp ESG Investment
Incremental investment
Enabling cost areas
Enabling areas costs tightly controlled to
enhanceleverage
Revenue to grow at HSD percentageleading to meaningful margin expansion
Revenue CAGR on FY20 basis all figures based on FY21 CER
171
161164
169
100
120
140
160
180
200
220
pound0m
pound500m
pound1000m
pound1500m
pound2000m
pound2500m
pound3000m
pound3500m
pound4000m
FY18 FY19 FY20 FY21 Medium term
Revenue Adjusted operating profit margin
Driven by full-price
Guidance based on constant exchange ratesHistorical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17)
Adjusted operating marginFY22 increased investment and cost normalisation
Medium term accretion expected driven by revenue growth and fixed cost leverage
Meaningful margin
accretion
Revenue growthHSD Revenue CAGR (base FY20) driven by brand advocacy core product categories improved sales densities digital and full-price
Transformation years and COVID impact The next chapter Accelerate and grow
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
34
bull
bull
bull
bull
bull
bull
bull
Revenue CAGR on FY20 basis all figures based on FY21 CER
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
35
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
36
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
37
bull Based on FX rates at 30 April bull Note all guidance based on FY21 CER
REVENUE
Markdowns We will be exiting markdowns in in mainline stores in FY22 This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD
Wholesale H1 wholesale to increase by around 50
Retail space Expected to be broadly neutral on the year
PROFIT Tax rate We expect the adjusted tax rate to be around 22
CASH FLOW Capex Expected to be in the range pound180m to pound190m
FX FX Headwind on revenue of pound96m and pound34m on adjusted operating profit at 30 April spot rates
DIVIDEND Resumption of progressive dividend policy
CALENDAR Please note that FY22 is a 53 week year
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
38
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
39
12
44
4
7
1614
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Current
FY 2021 Average 18
40
40
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