Supergroup : Capital Markets Update

SuperGroup Plc

SuperGroup Plc ('SuperGroup' or the 'Group')

Capital Markets Update

Superdry- a global digital brand

25 September 2017

SuperGroup is hosting a two day Capital Markets Updateat its Cheltenham headquarters entitled Superdry- a global digital brand. The presentationsbeing givenand a video of the eventwill be made available on the Group'swebsite. The event will outline the transformation ofthe business since March 2015, when the Group last presented its strategy update, demonstrate established global leadership based on Superdry's unique product DNA, a clear brand positioning, consistent delivery and describehow the business is leveraging its position as a global digital brand,with a compelling vision for further growth through eight different channels to market.

Key highlights:

The Capital Markets Update will describe the Group's plans to continue to deliver long-term sustainable profit growthand returns to shareholders, as follows:

· The transformation of the business since March 2015:

o Development of a globaldigitalbrand with brand revenueof £1.2bno Strong and consistent delivery of financial and strategiccommitments: - 25% CAGR revenue growth overathreeand fiveyear horizon - 25% Return on Capital Employedsustained over a threeand fiveyear horizon - 10 consecutive quarters of Retail Like-for-Like sales growth, averaging 12%
- Stronglycash generative with low lease adjusted gearing
- Significant infrastructure change delivered o Market leading Wholesale and Ecommerce growth:
- Wholesale growth accelerated to average 30% p.a. since 2015 re-set
- Ecommerce growth in line with pure-playso Diversified geographic revenues led by global Ecommerce capability:
- Mainland Europe established aslargest Superdrymarket, representing 49% of brand revenue o Payment of Ordinary and Special Dividendstotalling £58m· The introduction of a refined Strategic Framework to deliver high returnsfrom maximum focus on:

o Global Digital Brand

o Relentless Innovation

o World Market Opportunity

o Operational Excellence

· The name of the Group will change to SuperdryPlcreflecting our focus on developing the brand globally and digitally.

· The announcement of three stretching corporate responsibility goalsto underpin Superdry's continued global development.

Strategic Framework

Global Digital Brand: Superdryis a globally recognised brand with consistent consumer perceptions and a clear brand purpose and essence. Our digital marketing approach developed through innovative partnerships with digital leaders,is introducing new consumersto Superdry and deepening our engagement with existing consumers. With a strong Ecommerce business, Superdryalready serves consumers digitally in 148 countries through 20websites, which generate over 25% of Retail revenues having grown by an average of 50% each year since 2015.Relentless Innovation: Innovation is at the heart of the business, from our product designs, to our tailored approach to each new market, to constantlystriving to find the fastest and most efficient ways to serve our global consumers. The Superdryproduct range is constantly innovated with over 5,000 new styles introduced every year, contributing to our established category leadership position in jackets, hoods, sweats and graphics. World Market Opportunity: Whilst Superdryis present in 148 countries, many of the world's largest markets are still untapped opportunities. The Group has established capabilitiesin eight different channels through which we optimise our presence in each country. Our future growth will have a greater bias towardsEcommerce and Wholesale which provide flexible, low capital routesto market. These channels complement an owned store network that delivers attractive returns on capital while providinga complete brand experience. Furthermore, the improvements and efficiencies identified from our Next Generation store re-fit programme isallowingus to improve thepayback on future owned storesto 20 to 24 months. Operational Excellence: The Group is on track withits five year programme tobuild our capability to support future growth andimprove operational and working capital efficiency. Investments in best of breed systems, in global colleaguelearning and development, distribution infrastructure and local sourcing offices provide the foundation from which significant improvements in unit cost efficiency and revenue growth are anticipatedfrom the current financial year.

Corporate Responsibility

Sustainability lies at the heart of the Superdrybrand values, and remains front of mind in the design and production of ourhigh-quality products. Against that backdrop, we areannouncing three stretching new corporate responsibility goals, to be delivered by 2040 - the Super Responsible 40:

· 100% organic cotton usage

· 100% renewable electricity in everything we do

· Helping 100,000 young people to positively contribute to their community

Cotton is Superdry'ssingle biggest input material. As with all commodities, producing it at scale comes at a cost to the land and environment. We believe setting this ambitious target and workingwith suppliers and the supply chain beyond themwill supportthe sector to grow in order to produce more organic cotton, benefiting farmers' livelihoods and wellbeing, as well as the environment. Electricity generation from the burning of fossil fuels is one of the major factors contributing to climate change. Superdrywill be 100 per cent renewable in its stores and offices by 2020and will then extend its horizon to renewable energy in the supply chain workingwith its franchisees and distribution partners to ensure that they use only renewables by 2030 and with its suppliers to a 2040 deadline.Superdry's peopleare at the heart of everything it does. We are extending ourpartnership with the Prince's Trust and looking to enter into similar initiativeswith other partners in all of our major markets to make a real difference for 100,000 young people helping them gain experience in the workplace, improving their practical and social skills, improvingtheir mental health and encouraging theminto education or training.

Euan Sutherland, SuperdryChief Executive Officer, said:

'Superdryis a global digital brand with huge opportunities ahead of it. Over the past three years our business has delivered a fundamental transformation becomingincreasingly diversified not only internationally, but also by channel, product and in the customers we attract.

'Looking forward we believe we are better placed than ever before to deliver on our global digital brand aspirations.Our unique capability across Ecommerce, Wholesale and store channels provide significant opportunity for growth in the world's largest apparel markets with our focus on operational excellence enhancing returns from this growth. 'Changing the name of the Group to Superdryis an important step reflecting our focus on developing the iconic Superdrybrand globallyand digitally. 'Our three stretching Super Responsible 40 targetsreflect the scale of our ambition for the Superdrybrand and our aspiration to be a leader in corporate responsibility.

'We are more excited today than we have ever been before about the future of Superdryand our ability to create long-termsustainable growth for our investors by delivering on our compelling strategy.'

Notes :

1. The presentation materials will be available on the Company's website (www.supergroup.co.uk) at the conclusion of the event. No new material information will be provided.

2. Brand revenue represents reported sales for each financial period stated with Wholesale revenues adjusted to consumer retail prices.

3. Return on Capital Employed is defined as underlying earnings before interest and tax as a proportion of invested capital being total assets less current liabilities and cash.

4. Like-for-Like sales growth is defined as the year-on-year growth for stores and concessions open for more than one year and includes Ecommerce revenues. Foreign currency sales are translated at the average rate for the month in which they are made.

Media images available on request fromsupergroup@tulchangroup.com.

Notes to Editors

Superdryis a British global lifestyle brand, designed for attitude not age with affordable, premium-quality clothing, accessories, footwear and cosmetics.

As we develop the breadth and nature of our product range, we continue to appeal to a much broader, aspirational age group. Those who want to feel amazing in what they wear and appreciate style, quality and attention to detail.

Already well established in the UK - our home market - we operate a significant and continually expanding international business, selling through our websites, wholesale partners and a network of both franchise and owned stores. We are becoming a more efficient business as we improve our process from Design to Customer and refine our wholesale model. Simultaneously, we are focused on expanding our business globally with a clear strategy for growing our Ecommerce business as well as our operations in key markets within Europe, North America and China.

We have a physical presence in 62 countries and 863 stores and concessions globally. We also have a successful Ecommerce business with 27 international websites across 18 countries covering 12 different languages.