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Preliminary Results Financial year to 30 April 2013

INTRODUCTION

Financial Year to 30 April 2013 vs Financial Year to 28 April 2012

For definitions see appendix

• Very strong year of progress

• Group underlying and LfL sales up 4%

• Finished the year strongly

• UK & Ireland LfL +13% in Q4

• Northern Europe +14% in Q4

• Material share gains

• Significant steps taken in resolving

Pixmania’s position

• Ended the year with net cash - ahead of

schedule

Preliminary Results 2012/13 20 June 2013 2

UK & IRELAND

Financial Year to 30 April 2013 vs Financial Year to 28 April 2012

For definitions see appendix

• Total sales up 7%

• Operating profit up 39% to £113m

• Strong market share gains

• Increased value for customers

• Advocacy ratings remain high

• New customer initiatives • New customer journeys

• Pay & Collect

• White goods repairs

• Showhows

• 9pm next day delivery

• Multi-award winning websites

• Good progress on store portfolio rationalisation • Targeting 380-400 stores

Preliminary Results 2012/13 20 June 2013 3

21%

UK & IRELAND MARKET SHARE

Overall market Comet share winners

12% Single Channel

Amazon & Others

22% Mass Merchants

Argos & Supermarkets

4% Others

63% SERVICE LED

37%

LIMITED OR NO SERVICE

41% Other specialists

Source: Dixons Retail estimates

0%

5%

10%

15%

20%

25%

30%

Preliminary Results 2012/13 20 June 2013 4

PRICING POSITION REMAINS STRONG

80%

85%

90%

95%

100%

105%

110%

115%

120%

125%

Competitor 1 Competitor 2 Competitor 3 Competitor 4

Ch

ea

pe

r tha

n C

urry

sP

CW

orld

M

ore

exp

en

siv

e th

an

Curry

sP

CW

orld

Source: Dixons Retail Competitor Price Index

Preliminary Results 2012/13 20 June 2013 5

ADVOCACY REMAINS HIGH

43% 44% 46%

53%

48%

53%

50%

57%

60%

63%

68% 65%

71%

67% 67%

71% 69%

67%

70%

75%

72% 72%

75% 74% 71%

74% 75%

72%

78% 76%

71% 73% 73%

Very likely to recommend %

Source: Dixons Retail customer exit surveys UK&I only

Preliminary Results 2012/13 20 June 2013 6

NORTHERN EUROPE

Financial Year to 30 April 2013 vs Financial Year to 28 April 2012

For definitions see appendix

• Strong growth in all markets with

full year LfLs up 12%

• Highest ever achieved profitability

at £120.5m

• Operating margin of 4.2%

• New customer initiatives

• Happy or Not

• Knowhow

• Reserve & Collect

• New management team embedded

Preliminary Results 2012/13 20 June 2013 7

SOUTHERN EUROPE

Financial Year to 30 April 2013 vs Financial Year to 28 April 2012

For definitions see appendix

• Total sales down 4%

• LfLs down 8%

• Operating loss of £24m

GREECE

• Robust performance in a

difficult market

• Strong cost controls

• Improved profitability y-on-y

• 3 store in store trial with

Carrefour/Marinopoulos

Preliminary Results 2012/13 20 June 2013 8

SOUTHERN EUROPE CONT’D

Financial Year to 30 April 2013 vs Financial Year to 28 April 2012

For definitions see appendix

ITALY

• Significant improvement in

profitability

• Excellent cost control

• Market likely to consolidate

• Recent high profile awards

TURKEY

• Very fragmented market

• Race for share growth

• Good store estate of 14 stores

and 18 franchise stores

• Market consolidation likely

Preliminary Results 2012/13 20 June 2013 9

PIXMANIA

Financial Year to 30 April 2013 vs Financial Year to 28 April 2012

For definitions see appendix

• Poor performance in difficult

markets

• Significant actions taken during

the year

• Day to day control

• Restructured operations

• Exited 12 countries

• Non-core ranges exited

• Headcount reductions

• Sales agreed of Webhallen and PLS

• Exploring strategic opportunities

Preliminary Results 2012/13 20 June 2013 10

YEAR AHEAD

Financial Year to 30 April 2013 vs Financial Year to 28 April 2012

For definitions see appendix

• Resolve strategic positions in Italy, Turkey and of PIXmania

• Knowhow services

• Roll out in Nordics

• New added value services

• Digital downloads

• Customer journeys

• Refrigeration

• Roll out overseas

• Future stores

• Exciting new High street format

• New superstore format in Aylesbury

• Continue to deliver improving returns

Preliminary Results 2012/13 20 June 2013 11

STRATEGIC PRIORITIES

SUSTAINABLE

BUSINESS MODEL

RESOLVE STRATEGICALLY

WEAK POSITIONS

DEVELOPMENT OF

GROUP BENEFITS

FUTURE

OPPORTUNITIES

Preliminary Results 2012/13 20 June 2013 12

Financial review

FINANCIAL SUMMARY

• Underlying profit before tax of £94.5 million

• Group gross margins down 0.7%

• Predominantly product mix

• £45 million cost reduction achieved

• Year 1 of £90 million 2 year programme

• Positive free cash flow of £173.2 million, before

restructuring items

• Net cash of £42.1 million

• RCF extended to June 2015

• Reducing to £200 million by August 2013.

Financial Year to 30 April 2013 vs Financial Year to 28 April 2012

For definitions see appendix

Preliminary Results 2012/13 20 June 2013 14

UNDERLYING PROFIT BEFORE TAX

Financial Year to 30 April 2013 vs Financial Year to 28 April 2012

For definitions see appendix

94.5

24.4

31.3

16.9

25.2

136.0 41.5

120.5

113.3

0

50

100

150

200

250

UK & Ireland

Northern Europe

Southern Europe

Pixmania Central costs

Property EBIT Net finance Underlying PBT

£ Million

Preliminary Results 2012/13 20 June 2013 15

UNDERLYING PROFIT BEFORE TAX

Financial Year to 30 April 2013 vs Financial Year to 28 April 2012

For definitions see appendix

80

85

90

95

100

105

110

115

120

125

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2010/11 2011/12 2012/13

Operating profit (RH scale) Sales (LH scale)

Northern Europe £m £m

20

30

40

50

60

70

80

90

100

110

120

2,700

2,900

3,100

3,300

3,500

3,700

3,900

4,100

2010/11 2011/12 2012/13

Operating profit (RH scale) Sales (LH scale)

UK & Ireland £m £m

Preliminary Results 2012/13 20 June 2013 16

NON UNDERLYING ITEMS

£ million 12/13 11/12

Underlying profit before tax 94.5 82.1

Business exited/to be exited (7.7) (8.5)

Business impairment (79.4) (196.0)

Net restructuring charges (89.4) (16.3)

Amortisation of acquired intangibles (4.2) (4.5)

Jönköping disposal - 37.2

Other items (10.2) (4.3)

Loss on sale of Equanet (9.6) -

Net fair value remeasurement (1.9) (2.8)

Net Pension Interest (7.4) (5.7)

Total net non-underlying charges (209.8) (200.9)

Total (loss) / profit before tax (115.3) (118.8)

Financial Year to 30 April 2013 vs Financial Year to 28 April 2012

For definitions see appendix

Preliminary Results 2012/13 20 June 2013 17

POSITIVE FREE CASH FLOW

£ million 12/13 11/12

Underlying profit before tax 94.5 82.1 Businesses exited/to be exited (7.7) (8.5)

Depreciation & amortisation 134.0 138.8

Working capital 94.6 15.8

Taxation (11.8) (26.8)

Capital expenditure (92.4) (101.5)

Property Disposal Proceeds - 70.2

Historical currency hedges (62.6) -

Other 24.6 4.0

Free Cash Flow before restructuring items 173.2 174.1

Net restructuring (19.8) (43.8)

Free Cash Flow 153.4 130.3

• Strongly cash generative

• Closing net funds £42.1 million (net debt £104.0 million last year)

• including £110.2 million restricted funds

Financial Year to 30 April 2013 vs Financial Year to 28 April 2012

For definitions see appendix

Preliminary Results 2012/13 20 June 2013 18

SUMMARY

• Improving profitability in our multi-channel businesses

• UK & Ireland and Northern Europe growing profits substantially

• Improved performances in Italy and Greece

• Restructured PIXmania

• Delivered £45 million of cost reductions

• Further £45 million targeted in year ahead

• Generated £153m of free cash

• Net cash position for first time in 5 years

• Focused on our strategic priorities

• Drive towards improving return on capital employed

• Cautious about the consumer outlook

Financial Year to 30 April 2013 vs Financial Year to 28 April 2012

For definitions see appendix

Preliminary Results 2012/13 20 June 2013 19

Appendices

Appendices

1. Group LFL Sales Trends

2. Group Store Numbers and Space Trends

3. Shares in issue

4. Notes and definitions

Preliminary Results 2012/13 20 June 2013 21

1. GROUP LIKE FOR LIKE SALES TREND

12/13 12/13 12/13 11/12 11/12 11/12 10/11 10/11 10/11

FY H2 H1 FY H2 H1 FY H2 H1

UK & Ireland 7% 10% 3% (4%) 0% (8%) (4%) (7%) 1%

Northern Europe 12% 12% 11% 6% 6% 5% 5% 8% 1%

Southern Europe* (8%) (6%) (9%) (8%) (10%) (5%) (6%) (6%) (5%)

PIXmania* (24%) (31%) (9%) (10%) (7%) (16%) (1%) (4%) 3%

Total Group (Underlying) * 4% 5% 3% (3%) (1%) (5%) (2%) (4%) 1%

* Note: Southern Europe 10/11 restated to exclude PC City Spain.

Pixmania H1 12/13 restated to exclude businesses exited/to be exited.

Preliminary Results 2012/13 20 June 2013 22

2. GROUP - STORES & SPACE TOTAL

Store numbers 12/13 12/13 11/12 11/12 10/11 10/11

FY H1 FY H1 FY H1

UK & Ireland 552 563 596 614 650 661

Northern Europe 319 312 312 309 304 293

Southern Europe 273 272 276 281 281 268

Businesses exited/to be exited 10 28 27 24 58 56

Total Group 1,154 1,175 1,211 1,228 1,293 1,278

Space 000 sq ft 12/13 12/13 11/12 11/12 10/11 10/11

FY H1 FY H1 FY H1

UK & Ireland 7,755 7,877 7,986 8,019 8,194 7,964

Northern Europe 5,084 5,014 5,035 4,885 4,750 4,698

Southern Europe 3,704 3,749 3,858 3,838 3,895 3,693

Businesses exited/to be exited 14 45 43 36 448 442

Total Group 16,557 16,685 16,922 16,778 17,287 16,797

* Note: Comparatives restated to show all Dixons Travel stores under UK & Ireland

Preliminary Results 2012/13 20 June 2013 23

3. SHARES IN ISSUE

Number of shares

12/13 11/12 10/11

FY FY FY

Number of shares in issue 3,629.7m 3,610.4m 3,610.4m

Weighted average number 3,616.5m 3,608.7m 3,606.6m

of shares for basic eps

Weighted average number 3,696.4m 3,620.2m 3,618.9m

of shares for diluted eps

Preliminary Results 2012/13 20 June 2013 24

NOTES & DEFINITIONS

Certain statements made in this announcement are forward looking. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, we do not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise.

CAUTIONARY STATEMENT

1. Underlying results are defined as excluding trading results from businesses exited / to be exited, the amortisation of

acquired intangibles, net restructuring and business impairment charges and other one off non-recurring items, profit

on sale of investments, net fair value remeasurements of financial instruments and, where applicable, discontinued

operations. Businesses exited/ to be exited include the operations of PC City in Spain, Equanet, Webhallen, PLS and

PIXmania closed stores.

2. Like for like sales are calculated based on underlying store and internet sales using constant exchange rates. New

stores are included where they have been open for a full financial year both at the beginning and end of the financial

period. Closed stores are excluded for any period of closure. Customer support agreement sales are excluded from

all UK like for like calculations.

3. UK & Ireland comprises Currys, CurrysDigital, PC World, combined 2-in-1 Currys and PC World, Harrods

concession, DSGi Business, Knowhow , Dixons Travel, Dixons.co.uk as well as the operations in Ireland. Like for

like sales exclude DSGi Business.

4. Northern Europe comprises the Elkjøp Group, and Electroworld in the Czech Republic and Slovakia.

5. Southern Europe comprises Greece (Kotsovolos), Italy (UniEuro and, PC City store in store), and Electro World in

Turkey.

Preliminary Results 2012/13 20 June 2013 25