FY20 Results

1 Forward-looking statements

2 Chairman’s Overview Lord Rose

3 2020 in review Tim Steiner CEO

21 Changing the way the world shops, for good

‘We are pioneers. We continue to make the delivery of consumer’s essential groceries fit for modern lives and businesses. Our technologies, combined knowledge and 20 years of experience provide our client partners with exceptional efficiency and economics, and their consumers customer service that is among the best. Achieving this responsibly is at the very core of how we have solved complex challenges and how we will continually improve. This is achieved with minimal impact on the environment and a positive influence on the communities we serve. We are able to offer this proven ability to our client partners and deliver on shared ambitions.’

5 21 Financial Review Andrew Page Deputy CFO

6 Financial Summary

£m FY 2020 FY 2019 Var (%)

Group Revenue 2,331.8 1,756.6 32.7% Group EBITDA 73.1 43.3 68.8% Depreciation, amortisation, (168.9) (136.1) 24.1% impairment Net Finance costs (52.8) (27.6) 91.3%

Loss before tax (148.6) (120.4)

Exceptionals 104.6 (94.1)

Loss before tax (44.0) (214.5) post exceptionals

1. Revenue is online sales (net of returns) including charges for delivery but excluding relevant vouchers/offers and value added tax. The recharge of costs and associated fees to our UK Solutions clients and International Solutions clients are also included in revenue with the exception of recharges to Ocado Retail which are eliminated on consolidation 2. EBITDA excludes exceptional items. Group EBITDA in FY20 includes the EBITDA impact of IFRS 16 of £27.1m (FY19 £25.4m) Segmental Summary

Revenue1 EBITDA1 2

Var Var £m FY 2020 FY 2019 FY 2020 FY 2019 % % Retail 2,188.6 1,618.1 35.3% 148.5 40.6 265.8%

UK Solutions & 654.3 576.0 13.6% 44.4 72.1 (38.4)% Logistics

International Solutions 16.6 0.5 - (83.3) (54.9) (51.7)%

Other3 - 9.8 - (36.5) (14.2) (157.0)%

Total 2,331.8 1,756.6 32.7% 73.1 43.3 68.8%

● FY19 EBITDA for UK and International Solutions and Other have been re-presented following a review of Group administrative costs. Nil impact to Group EBITDA. Further detail is contained in the Appendix.

1. Group totals include eliminations 2. EBITDA excludes exceptional items and includes the impact of IFRS 16 3. Other segment represents revenue and costs which do not relate to the other three segments. This includes Board costs, the results of the Fabled business that was divested during FY19 and the consolidated results of Jones Food Company 8 Ocado Retail: Covid-19 impact on operations Change in customer behaviour impacts KPIs Contextualising the impact on financials

UPH (mature CFCs2) benefits from recent trends Operating leverage from capacity +5% benefit in CFCs on same fixed cost base Smoothed week; More items per basket, better total utilisation better commonality Smoothed week 161 169 better total utilisation

FY19 FY20 Underlying growth success scaling Erith Higher Bigger Impact FY20 growth in volumes baskets to KPIs normalised OPW

(6%) Bigger baskets drive increased van fill, lower delivery cost +19% 196 184 total eaches per van More volumes and cash but shift in FY20 vs FY19 fewer orders per van FY19 FY20

Whilst DPV reflects shift towards larger baskets further impact on marketing and supplier income lines

Note: (1) An each is an individual unit of product (2) units dispatched from the CFC per variable hour worked by Hatfield CFC, Dordon CFC and Erith CFC operational personnel 9 Ocado Retail performance

FY 20201 FY 20191,2 (% Retail Revenue)

Product mix and ending of Gross margin (incl. media) 34.2 32.9 130 sourcing agreement

Trunking and delivery costs (10.8) (12.1) 130 Continued underlying progress, Erith now above average UPH; benefit of CFC costs (7.7) (9.1) 140 higher throughput from existing CFCs Other operating costs (0.6) (0.8) 20 during COVID-19 crisis

Marketing costs3 (1.0) (1.2) 20 Reduced acquisition costs

Fees (3.4) (3.9) 50 Leverage benefit Operating contribution 10.8 5.9 490 Full year of Retail head office costs Admin costs (4.0) (3.4) (60) (including strengthening the buying team; a full year of Board costs; and 6.8 2.5 430 EBITDA establishment of bonus schemes)

1. Excluding exceptionals. 2. The costs of Ocado Retail’s operation in 2019, prior to the formation of the joint venture with M&S, have been allocated between the Retail Segment and UK & Logistics segment in order to be broadly comparable to the current contractual arrangements now in place 3. Marketing costs, excluding voucher spend 10

UK Solutions: Strong client volume growth offset by continued Andover impact and investment

FY 2020 FY 2019 Var %

Fee revenue 117.1 105.9 10.6% Cost recharges 537.2 470.1 14.3% Revenue 654.3 576.0 13.6%

EBITDA 44.4 72.1 (38.4)%

● Strong client volume growth ● Revenue growth impacted by Andover (Erith “holiday”) ● Continued reduction in engineering costs per order at Erith, though higher than other mature CFCs ● EBITDA impacted by Andover revenue and extra investment in platform 11 International Solutions: revenue building, fees invoiced point to strong future growth

FY 2020 FY 2019 Var

£m £m %

Revenue1 16.6 0.5 - EBITDA (83.3) (54.9) (51.7)%

Fees invoiced 123.9 81.4 52.2%

● Revenue building following go-live of CFCs in and Canada in FY20 ● Cumulative unrecognised invoiced fees of £256m ● Growth in costs to support accelerating client requirements

1. FY20 Revenue includes £7.0m of equipment sales to a retail partner recognised as revenue under IFRS 15. The impact on EBITDA is nil. 12 Group net cash flow development

£m FY19 Cash position 641 751 inc. £110m Treasury Deposits EBITDA 73

Strong Contract Liabilities 98 operating Insurance proceeds 40 cash flow Working capital 32 1 Finance costs + other (18) Capex split

Net debt/finance obligations 882 Share issues 658 Financial Capex1 (452) flexibility to capitalise on the Other treasury deposits (260) full opportunity UK Intl. Platform Insurance proceeds 25 CFCs Dev set over the medium term Other (12) FY20 Cash position 1,707 2,077 inc. £370m Treasury Deposits

1. Variance is the difference between accrued capital expenditure and cash capital expenditure. UK includes share of MHE JVCo capex 13 Outlook for 2021

● Revenue growth: ○ Retail highly dependent on COVID restrictions. New capacity ramp up over the course of the year from 3 new UK CFCs ■ Bristol to open in 1Q21 ■ Andover and Purfleet to open in 4Q21 ○ UK Solutions & Logistics double digit growth ■ ramp-up of new UK capacity ○ International Solutions fees from OSP partners expected to increase to around £50m ■ full year revenues from 2 CFC sites opened in FY20, for Casino and Sobeys ■ partial year operations of 2 new CFCs expected to open in 1H21 ● International Solutions fees invoiced around 30% growth

14 Outlook for 2021

● EBITDA: ○ Covid-19 will continue to have a significant impact ○ £30m additional costs due to accelerated investment in technology and platform, including acquisitions of Haddington Dynamics and Kindred Systems ○ Retail dependent on COVID restrictions and impacted by additional capacity fees on new sites ○ UK Solutions & Logistics: additional capacity fees from new sites to return EBITDA to FY19 levels ○ International Solutions: expected to be lower, as investment more than offsets increase in revenue ● Capex forecast around £700m ○ Broadly 40% UK CFCs; 40% International CFCs; 20% Development and Other

15 in a post Covid-19 world Tim Steiner CEO

16 Millions of new customers now shop for grocery online Channel shift to online grocery is sticky Customers will look for the best experience

Many customers that have tried online Globally, consumers value similar things, grocery intend to continue post pandemic though relative emphasis may vary Convenience 70% format flexibility - speed - reliability US consumers buying produce online who expect to continue Quality and Choice freshness - range - availability - health/hygiene

66% Value range of pricing substitutes - delivery costs - promos first time online grocery users in Western Europe who expect to continue And shop around for a better service

55% 28% 34% 28% of European in US have tried in China of consumers in China are likely to consumers would a new retailer, switched continue buying groceries online consider a switch store or website to a new store

To win in online grocery requires serving all customers missions with the best offer

Sources: CH Robinson Consumer survey, October 2020, GS report November 2020, McKinsey & Company report, November 2020, McKinsey & Company Covid-19 digital sentiments survey, 17 McKinsey & Company COVID-19 US Consumer Pulse Survey 11/9-11/13/2020 OSP is setting the benchmark for customer experience Ocado.com sets the bar in Our partners are replicating Strong customer metrics lead terms of customer service these metrics in their markets to strong customer retention A leading customer offer Early NPS scores are a positive Customer satisfaction clear in indicator for future growth stable Ocado.com cohort spend Range 87 45k+ SKUs Voila by Sobeys

Service ‘highest I have seen in my career’ CEO, Michael Medline Sept 2020

99% order accuracy 95% on time delivery 50+ Monoprix Plus,

Value (MA) spend Cohort

flexibility to price range and most weeks it exceeds 50, even delivery to offer most value reaching a score of 65 2002 2020 - LSA, Sept 2020 Importance of the customer offer Retention will be a long With market leading profitability will only increase in the future term differentiator for growth OSP enables an unparalleled customer offer, facilitating partners’ long term success in online grocery Source: Company information. 18 ‘Our Ocado platform is incredibly resilient ’ Melanie Smith - CEO, Ocado Retail

19 ‘We have achieved best in market metrics’ Michael Medline - CEO, Sobeys

20 ‘We have partnered with Ocado because of their world-leading technology’ Rodney McMullen - CEO, Kroger

21 Only OSP can deliver the best customer experience

Online Retail Experience Technological expertise End-to-end integration

20 years as a pure play >750 patents granted and Most advanced solutions in tackling unique complexities pending on proprietary tech eCommerce, Fulfilment and of online grocery fulfilment: Logistics, in one package, ~2,500 technologists today enabling dynamic and High volumes per order simultaneous optimisation Temperature range Broad and deep tech real estate: AI, Robotics, Digital Twins, across all processes Aggregation into one delivery Cloud, Big Data, IoT

We intimately understand We are pioneering and We can best reduce friction the problems we solve for experienced technologists and maximise efficiency

OSP is a unique combination of retail knowledge, technological expertise and broad solutions 22 Source: Company information ‘Solving technology problems to create the best customer experience’

James Matthews, CEO, Ocado Technology

23 ‘We are helping our grocery partners serve more customers online, faster’

Luke Jensen, CEO, Ocado Solutions

24 Seven partners live in 2021

CFC opening CFC Additional CFCs ISF live or roll Enabling online Live in 2021 plans on track progress update announced 2020 out by 1H21 growth with OSP

CFCs 3 (rebuild)/5/6 live in 1Q/4Q21

n/a Return to CFC4 1Q21

n/a n/a

Ramping CFC1, planning CFCs 2/3

Ramping CFC1, building CFCs 2/3

Launch CFCs 1/2 1H21, CFC3 later 2021 or early 2022

Launch CFC 1H22

All nine partners, including Coles and Aeon, will be live by 2023 25 Source: Company information. Note: Groupe Casino has announced the intention to build further CFCs although these have not yet been commissioned Accelerating ramp of live capacity for international partners

CFCs - live modules

Includes >10x increase in live ● CFCs publicly announced to date CFC modules vs FY20

does note include ● UK capacity ● Optionality for amends to ramp plans ● ISF capacity

We are are in the initial stages of a significant ramp up in capacity for partners 26 Source: Company information 17 CFC sites currently under construction

Groveland, Florida, USA Stockholm,

Bristol, UK Montreal, Canada Melbourne,

Source: Company information 27 OSP: a multi format ecosystem to win in online grocery

"The OSP is a uniquely flexible platform which allows partners to meet the full range of customer missions. Standard-sized CFCs enable our partners to access to the largest part of the market and generate the best economics. With the standard-sized CFC as an anchor, we can also enable our partners to offer customers a best-in-class immediacy service, the geographic flexibility of mini-CFCs, with the additional, tactical advantages of In-Store Fulfilment roll out. This all adds up to a platform which allows our partners to bring their customers the best value and the highest levels of service in the most efficient, sustainable, and economical way”.

28 Mini CFCs: building further ecosystem flexibility for partners

Enabling partners to serve the full offer to more customers, faster First mini sites launching soon for partners

Augmenting ecosystem flexibility Bristol CFC to go live at the end of February

1. Serving a full grocery offer to less densely populated areas

2. Serving denser areas with shorter lead times

Serving a breadth of missions

Up to 45k SKUs Big stock up

Delivery to customer Weekly shop

within 4 hours of order Top-up

Work underway to facilitate use of OSP CFC7 in UK and Kroger mini in ecosystem to further reduce operating costs Michigan both planned for go-live in 1H22

29 Source: Company information Micro fulfilment: a winning solution for convenience missions

Serving more customers Our model enables leading We are accelerating in the UK, and expanding wallet share economics for immediacy and see a big global market

Zoom increases share of wallet Tackling a higher cost mission Search underway for with big basket customers more sites in the UK Right now, peakier demand, 50% with smaller baskets 12+ incremental spend from Zoom sites in with active Ocado.com customers1 drives higher cost as % basket expansion to other UK cities Big global opportunity and expands customer base last mile - waste - fulfilment customisable to each market

50% better offset leveraging CFCs, population density Zoom customers that are not for ecosystem benefits demographics active Ocado.com customers of scale and centralisation market share prevalent missions An opportunity to serve new Enabling operating margin Future roll out based on missions and demographics approaching large sites proprietary Ocado technology

Source: Company information 30 Note: (1) Active Ocado.com customers using Ocado Zoom through first site in Acton, pre Covid-19 Additional flexibility through ISF Many partners are taking Greater flexibility A scalable software solution advantage of this flexibility

Meeting partners’ immediate >8x increase in ISF volumes 5 partners live with ISF in 2021 and long term needs served for partners in 2020 Live in over 400 stores Strategic 900 fulfilment for remote areas Click & collect Tactical across Catalonia precursor to CFCs planned ‘will expand...stores for higher volume areas across Canada over the next few years’ with a leading ISF solution ‘planned rollout across Kroger stores’

OSP integration 100 ‘by the end of December pick efficiency - inventory awareness - [2021] Mar May Jul Sep Nov admin efficiency - last mile integration all stores will have converted to OSP’ Volumes served expected Live in as little as a few months to double again in FY21 Coles to launch in the future

Expected to be serving over 1000 stores, globally, by the end of FY21 31 Source: Company information, Sobeys, Kroger and ICA market announcements ‘We are ready to ramp’

Mark Richardson, COO, Ocado Group

32 Ready to ramp as fast as our partners need to Innovation and collaboration We have the resource to We have the experience to ramp improves each successive launch ramp up as fast as needed up at speed with quality execution

Learnings to build on from Third party contracts bring We have ramped Erith to OPW FY20 successful launches increased scale and flexibility double that of a ‘typical’ site Supply chain More resilient training process 130k +35k OPW in Global contract manufacturers Virtual/AR tools add ongoing flexibility 2Q20 alone Jabil - Flex

Operational reporting tools MHE installation 65k Better support on-site New overseas team structures and teams and remote visibility partnerships with local installers

Expanded implementation and Collaboration across the club client services teams globally Data for more and earlier knowledge sharing with partners Erith FY20 Typical CFC +640 with practice from 9 sites by colleagues in 8 countries so tested the infrastructure FY21 learnings will accelerate beyond standard requirements

We are always improving and moving towards a ‘readiness to install’ model for partners 33 Source: Company information Reducing the cost to serve with continuous improvements

2016 2018 2020 Andover roll out Erith roll out International roll out

MHE Easier to maintain Easier to maintain Proprietary design, and manufacture and manufacture modular, future proofed 2nd gen bot: 25% new parts 3rd gen bot: 75% new parts

Software Smarter and more scalable Smarter and more scalable Proprietary, end-to-end updated ‘healthcare’ system, replatformed bot software; initiated new bot platform roll out integrated with CFC digital twin

Testing capabilities Improved reliability Improved reliability Live testing of software 1000hrs before deployment testing embedded in 50 hrs/wk grid testing capacity 20x more grid testing capacity manufacturing process

Our solution is getting easier to maintain, smarter, more scalable and more reliable, which means better performance and manufacturability with less downtime and lower cost of ownership

Average engineering cost per order down by 20% in FY20; plans for further progress in FY21 34 Source: Company information Reducing the cost to serve: accelerating robotic picking Acquisitions materially accelerate our progress towards solving robotic pick challenge

Unmatched breadth of handling characteristics in grocery demand highly sophisticated solution

Proven solution (GM, logistics) Developed capabilities and Dexterous, 3D-printed arms; productionisation experience, data capture in grocery, Low cost, ultra precision team of engineering talent scaled R&D, global client set motion control for robotics

We plan to roll out a commercial solution in 2-3yrs with a big opportunity to play for

Annual cost of manual pick £7m = and decant in a standard CFC

Opportunity to transform economics for our partners through shared cost savings 35 Source: Company information Robotic picking expands our core opportunity Channel shift means large runway for growth Robotic picking is transformative for partners and us

Grocery is the largest retail market globally 1.7% potential cost benefit means a better solution for partners, driving a bigger opportunity for us £7.6tn global grocery A bigger key market opportunity, as greater 1 £2.8tn key markets 1 efficiency extends the possibilities of automation into fast growing peripheral markets £0.7tn 25% share (exclusive partner)

partners’ share of benefit means greater Shift online is growing the addressable market 2 competitive advantage enabling faster growth 0.5tn and greater share in their markets 0.4tn 0.1tn 0.2tn our share of benefit means an incremental 3 fee opportunity on this larger base 10% 25% 50% 75% % of £0.7tn market online Continued automation of the end-to-end process for £3.5bn - £26.3bn fee opportunity partners will drive more opportunity and faster growth

Opportunity to transform economics for our partners through shared cost savings 36 Source: Planet Retail Creating more value adjacent to and outside of grocery Staying ahead of the curve; investments in Leveraging our technology expertise transformational change related to core mission for disruptive change in other verticals Exciting progress: readying to seize the The potential market for robotic accelerated opportunities of a post COVID world solutions in warehouse settings is huge

● Fundraising in process Sorting and picking ● 2 further farms planned 3Q21-1Q22 share of warehouse $3bn automation market ● 100 commercially grown crops ● 8 operating farms ● Successful £6.3m fundraise

● Prototype launched for customised hot and cold meal prep FY21 revenue forecast $0.04bn Kindred Systems: ● Built a proprietary 3D vision system ● 180 live arms ● Production printer currently being assembled ● GM and logistics client base ● Minority stake announced in October 2020 ● Appointed to bespoke MHE product With considerable opportunities outside of the warehouse in the long term

Significant long term value opportunities where we can leverage our expertise or technology 37 Source: Company information, William Blair Conclusion

● Over the last twelve months, the world has changed. Millions of customers have tried shopping for grocery online for the first time and they like the experience. The landscape of grocery retailing worldwide is changing, for good ● In a post-vaccine world, customers will, however, become more discerning. They will look for the best customer experience and they will find it where grocers use the Ocado Smart Platform ● Customers will also expect retailers to serve a range of customer missions. The flexible OSP ecosystem enables our partners to do it all, with proven and sustainable economics ● As we enable our partners to grow faster, we are increasing investment in innovation, to reduce the cost to serve and expand our total addressable market. This means more investment to create future value ● Ocado Group is ahead of the curve and the energy and vision of the business will help keep us there

38 Q&A

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39 Appendix: Changes to cost allocation in Solutions segments

EBITDA £m Retail UK Intl Other Elim Group ● Central Group costs that are not directly attributable to individual segments are Solutions allocated using a group allocation key.

Financial Year 2019 ● In the second half of the year, a detailed review of Group administration costs was undertaken to assess how Group Functions support both As restated at H1 20 40.6 79.1 (60.8) (15.2) (0.4) 43.3 the UK Logistics and Solutions and International Solutions Segments. Re-presented costs - (7.0) 5.9 1.0 0.1 - ● The effect of this review is: ○ FY19: a re-presentation of £7.0m of Re-presented 40.6 72.1 (54.9) (14.2) (0.3) 43.3 administrative costs to UK Logistics and Solutions from International Solutions and Other segments in FY19; ○ FY20: a re-presentation of £5.6m of H1 2020 administrative costs to UK Solutions and Logistics, from International As reported 45.7 29.3 (45.1) (10.4) 0.3 19.8 Solutions and Other segments in H1.

● As reported at the half year, certain leases Re-presented costs - (5.6) 5.4 0.2 - - have also been re-presented between segments to reflect the substance of the Re-presented 45.7 23.7 (39.7) (10.2) 0.3 19.8 transactions.

● There is no impact to Group EBITDA and 1. Group totals include eliminations the Retail segment. 2. EBITDA excludes exceptional items and includes the impact of IFRS 16 3. Other segment represents revenue and costs which do not relate to the other three segments. This includes Board costs, the results of the Fabled business that was divested during FY19 and the consolidated results of Jones Food Company 40 Appendix: IFRS 16 impact FY19

Retail UK Intl Other Elim Group Solutions

Revenue £m

Pre-IFRS 16 1,618.1 584.5 0.5 9.8 (456.3) 1,756.6

IFRS 16 impact - (8.5) - - 8.5 - Capital contributions from UK retail partners that are not recognised as revenue under IFRS 16 Reported Revenue 1,618.1 576.0 0.5 9.8 (447.8) 1,756.6

EBITDA £m

Pre-IFRS 16 21.1 67.2 (56.2) (14.2) 0.1 18.0

Revenue - (8.5) - - 8.5 - As above

Admin and Distribution 19.5 13.4 1.3 - (8.9) 25.4 Operating lease expenses replaced with depreciation and finance costs which fall outside of calculation of EBITDA Reported EBITDA 40.6 72.1 (54.9) (14.2) (0.3) 43.3

41 Appendix: IFRS 16 impact FY20

Retail UK Intl Other Elim Group Solutions

Revenue £m

Pre-IFRS 16 2,188.6 663.0 16.6 - (536.4) 2,331.8

IFRS 16 impact - (8.7) - - 8.7 - Capital contributions from UK retail partners that are not recognised as revenue under IFRS 16 Reported Revenue 2,188.6 654.3 16.6 - (527.7) 2,331.8

EBITDA £m

Pre-IFRS 16 125.7 42.1 (84.9) (36.5) (0.4) 46.0

Revenue - (8.7) - - 8.7 - As above

Admin and Distribution 22.8 11.0 1.6 - (8.3) 27.1 Operating lease expenses replaced with depreciation and finance costs which fall outside of calculation of EBITDA Reported EBITDA 148.5 44.4 (83.3) (36.5) - 73.1

42