UK: Ocado losses narrow as sales jump

OCADO GROUP PLC

Preliminary results for the 53 weeks ended 2 December 2012

7 February 2013 - Ocado Group plc ("Ocado") today announces its unaudited preliminary results for the 53 weeks ended 2 December 2012.

Strategic and operational highlights · Exited 2012 with strong momentum in customer growth and basket size maintained · Service metrics continue at consistently high standards · Range extended by 40% to over 28,000 SKUs (2011: 20,000) · Significant progress in pricing including the introduction of Low Price Promise, our basket matching initiative · Dordon Customer Fulfilment Centre ("CFC2") on track to open by the end of February, and remains on budget

Key financials

53 Weeks 2012 Change vs 2011 52 Weeks 2012 Change vs 2011

£million

£million

Gross sales1 731.9 +13.9% 716.2 +11.4% EBITDA2 34.5 +23.9% 33.5 +20.4% Adjusted3 profit before tax 1.8 +£4.2 million 1.3 +£3.7 million

· Net debt of £55.2 million (2011: £19.2 million) · Cash and cash equivalents of £89.6 million (2011: £92.1 million)

Statutory highlights · Revenue of £678.6 million (2011: £598.3 million) · Loss before tax of £0.6 million (2011: £2.4 million)

Tim Steiner, Chief Executive Officer of Ocado, said: "We continued to achieve double digit sales growth during 2012 with increasing rates of sales and new customer momentum as we moved into 2013. This has been driven by further improvements to our core offer to customers - better value, wider ranges and enhanced service.

"Shopping online for groceries is clearly of increasing importance to consumers. In 2013, we will continue to improve the attractiveness of Ocado to customers and we shall substantially increase our capacity with the opening of our second fulfilment centre, creating over 1,000 jobs in the Midlands."

Duncan Tatton-Brown, Chief Financial Officer of Ocado, said: "We have ended 2012 with a solid financial platform and a cash position of £89.6 million. We have worked hard at improving overall efficiency in our operations and margins are improving. The introduction of a significant increase in fulfilment capacity this year to meet growing demand, and our continued efforts to drive efficiency, will enable us to demonstrate the longer term benefits of our business model."

Results presentation A results presentation will be held for investors and analysts at 9:30am today at the offices of M:Communications, 11th floor, 1 Ropemaker Street, London, EC2Y 9AW. Presentation material will be available online at results12.ocadogroup.com.

Contacts · Tim Steiner, Chief Executive Officer on 020 7920 2330 today and 01707 228 000 · Duncan Tatton-Brown, Chief Financial Officer on 020 7920 2330 today and 01707 228 000 · David Hardiman-Evans, Head of IR & Corporate Finance on 020 7920 2330 today and 01707 228 000 · Michelle Shearly, Public Relations Manager on 01707 382 274 · Nick Miles, Ann-marie Wilkinson or Charlotte Kirkham at M:Communications on 020 7920 2330

Notes 1. Gross sales include revenue plus VAT and marketing vouchers. 2. EBITDA is a non-GAAP measure which we define as earnings before net finance cost, taxation, depreciation, amortisation, impairment and exceptional items. 3. Adjusted to exclude exceptional items.

Where deemed relevant by the Group, references to financial performance in the highlights and the business reviews are stated on a proforma 52-week basis to 25 November 2012, unless specified otherwise.

Original source: Ocado