Investor and Analyst Day

Stockholm, Skeppsholmen 16 June 2015

Sebastian James Group Chief Executive

Welcome and agenda

1. Introduction and Carphone update Sebastian James

2. Programme for the day Jaan-Ivar Semlitsch

3. Elkjøp overview and market background Jaan-Ivar Semlitsch

4. Elkjøp performance and key initiatives Jaan-Ivar Semlitsch

5. Niclas Eriksson i. Overview ii. Integration iii. Store tour locations

6. Q & A

Page 3 Recap of full year 2014/15 trading

• Group like-for-like revenue increase of 6% • UK&I: 8% • Nordics: 4%

• PBT earnings guided to be slightly above the top end of guidance range £355m to £375m

• Integration on track

• CWS development encouraging

• MVNO launched in the UK and soon to launch in Ireland

Page 4 Good progress against strategic value drivers

Core business Core business Synergies Connected World Services Services opportunities

• Market share gains in • Launch of UK MVNO • 237 SWAS stores • New structure in • New propositions to all key markets in all • Irish capacity opened (of which place be trialled this year categories MVNO to launch 100 full CPW • Apple deployment in • Shift of repair • Capture of more than shortly executions) Canada live in next activities to central fair share of P4U • Disposals of German • 4 more per week few weeks location • NPS / Advocacy and Dutch businesses • Trading • UK performing well scores at all time • Launched 3-in-1 trials encouraging • Filling pipeline record high to determine end- • Nordics co-branded • Price vs market at state property stores most competitive portfolio • H/O building work ever in UK • Multi-play underway • Progress on propositions • Sweden complete competitive launching late • UK move in initiatives summer October • Warranty, price, • UK Warehouse / delivery, online repair integration announced • Key structures built • Consultations underway

Page 5 Steve Moore Director of Connected Home

PLACEHOLDER: STEVE MOORE SLIDE

PagePage 7 7 The year ahead

• Further market share gains • Own The Kitchen rollout • Phone initiatives • Soft credit check • iD • Infrastructure • IT • Property portfolio • CWS rollout • Market backdrop: • BT / EE • O2 / 3 • Multi-play

Page 8 Introducing the Nordics team

Page 9 Today

• Focus on Nordics

• Access all areas

• Complex logistics

• Nice people

Page 10 Jaan Ivar Semlitsch CEO Elkjøp Nordics region

Programme for the day

• Now to 10:30: Presentations from Jaan-Ivar and Niclas

• 10:45: Travel to the Kungens Kurva Big Box Elgiganten store

• 12:30 to 13:15: Scandinavian style lunch

• 13:30 to 15:00: Group splits - visits to the Nacka Phone House store and the Liljeholmen Elgiganten Phone House store

• 15:30: Travel to airport

Page 12 Welcome and agenda

1. Introduction and update Sebastian James

2. Programme for the day Jaan-Ivar Semlitsch

3. Elkjøp overview and market background Jaan-Ivar Semlitsch

4. Elkjøp performance and key initiatives Jaan-Ivar Semlitsch

5. Sweden Niclas Eriksson i. Overview ii. Integration iii. Store tour locations

6. Q & A

Page 13 Market structures by country

Population Currency Land area Market size Elkjøp sales # Stores Market Market Competitive share growth environment

5.1mn NOK 385,000km2 28bn NOK 10bn NOK Own = 80 35% M £816mn Franchise = 61

9.7mn SEK 450,000km2 40bn NOK 9bn NOK Own = 131 23% H Sweden £766mn Franchise = 39

5.7mn DNK 43,000km2 19bn NOK 5bn NOK Own = 29 27% M £444mn Franchise = 0

5.5mn €URO 338,000km2 15bn NOK 4bn NOK Own = 21 25% H £326mn Franchise = 18

Elkjøp has 12 franchise stores in , and Greenland with total sales of ~150mn NOK. The competitive environment in these markets is considered low.

Page 14 Macro environments in Nordics

SWEDEN •Sustained consumer spending and more benign prospects for exports NORWAY •Riksbank to keep SEK weak near term FINLAND •Oil driven weakness in •Inflation up, but will not reach 2% target •Need for a highly Norwegian economy expansionary monetary •Norges Bank may be policy forced to cut its rate •The Finnish economy

sharply 1 has bottomed out •Soft landing thanks to Currency: NOK / EURO •Euro movements are expansionary monetary benefitting Finland only and fiscal policies. Oil in part prices likely to increase •Cheaper oil provides gradually 2 temporary support this •Low labour supply Oil price year growth dampens •Private investment is at uptrend in the same level as in unemployment 1999 DENMARK •After some sluggish years the Danish economy has returned to growth •Consumer spending breaks vicious circle •Inflation briefly in negative territory •Risk of new bubbles in two-tier housing market

Page 15 Competitive landscape variable by market

Market share in Nordics 27% 7% 4% 4% 2% 2% 2% 2% ~ 1 %

- Small, medium - Small and - Large stores - Online player - Medium sized - Small and - Online - Online - Online and large sized medium sized - High share of stores medium sized player player player Key stores stores self-service and - Extremely stores - Owned by characteristics - Own and - Own and low share of strong in sales - Own stores Siba-Group franchise stores franchise customer of insurance - 40% owned by stores service in the and credit Elkjøp Nordic stores sales - Own stores - Ownership of Net-on-Net - Own stores

- Audio/Video - MDA - MDA - Computing - Computing - Audio/Video - Computing - Computing - MDA Key product - MDA - CE - CE - Computer - Telecom - Entertainment - Telecom - Telecom categories - SDA - Computing accessories - Photo - Photo - Computing - Telecom - Audio/ - Telecom - Photo Video - Kitchen - MDA - SDA

Page 16 Nordics at a glance

Elkjøp group Phone House Total

Sales 2013/14 28bn NOK 1bn NOK 29bn NOK

Customers visiting stores 67mn 4mn 71mn

Customers visiting website 186mn 5mn 191mn

Colleagues ~ 8,000 ~ 350 ~ 8,350

Stores – Total (own/franchise) 298 (178/120) 93 (83/10) 391 (261/130)

2014/15 LFL revenue growth +4.2% +2.4% +4.2%

Page 17 Elkjøp operating model

Elkjøp group

• Logistics • Strategy Jonköping warehouse, • • Buying and marketing Trunking • Finance repair • Home delivery • Core HR • Repair • Wholesale • eCommerce • Property and shops

Elgiganten Elkjøp Elgiganten Gigantti All franchise Sweden Norway Denmark Finland countries

• support • Management • Account management • Assortment planning • Recruitment of new • Retail management franchises • Local proposition

Page 18 Key elements of Nordics operating model

Market Leadership Retail Excellence Low Cost

• Centralised • Total customer • 18% costs to sales purchasing focus • Simplified business • High sales • Flexible model strategy densities • Sales focus • Devolved decision making • Key supplier • Culture and • Cross-border synergies relationships training • Higher marketing %

Page 19 Welcome and agenda

1. Introduction and Dixons Carphone update Sebastian James

2. Programme for the day Jaan-Ivar Semlitsch

3. Elkjøp overview and market background Jaan-Ivar Semlitsch

4. Elkjøp performance and key initiatives Jaan-Ivar Semlitsch

5. Sweden Niclas Eriksson i. Overview ii. Integration iii. Store tour locations

6. Q & A

Page 20 Elkjøp Nordics has enjoyed a strong growth rate

Revenue in bn NOK and 5 year CAGR

27.9 +9% 24.9 22.7 21.2 19.8

09/10 10/11 11/12 12/13 13/14

Page 21 Elkjøp Nordics market shares increasing in all territories and categories

2014 Elkjøp index Market index

Norway Sweden Denmark Finland

107 104 116 106 Audio/video* 100 99 105 96

105 110 96 101 MDA* 93 98 96 97

108 112 99 109 SDA** 102 102 99 107

107 108 124 109 Computing* 108 107 103 103

109 105 99 107 Telecom* 90 93 99 96

Page 22

* Market share in units. ** Market share in value. Note: Data displayed in the charts based on market research, supplier and company estimates

Page 22 Customer Service at record highs

Norway Sweden

% % 100% 100%

80% 80% 74% 80% 74% 60% 60% 67% 40% 40%

20% 20% 0% 0% July 14 May 15 July 14 May 15

Denmark Finland

% %

100% 100% 80% 80% 75% 74% 60% 69% 60% 69% 40% 40% 20% 20% 0% 0% July 14 May 15 July 14 May 15

Very negative Negative Positive Very positive

Page 23 Price competitiveness very strong, but still work to do

Norway Sweden

105% 105% 103% 103% 101% 101% 99% 99% 97% 97% 95% 95% 93% 93% W21 W22 W23 W24 W21 W22 W23 W24

Denmark Finland

105% 105% 103% 103% 101% 101% 99% 99% 97% 97% 95% 95% 93% 93% W21 W22 W23 W24 W21 W22 W23 W24

Page 24 Country overview: Norway

• Elkjøp market leader in all major Elkjøp Lefdal cities with Lefdal as number 3 mn NOK / CAGR +3% • Strong brand awareness 9.682 9.662 10.000 8.812 9.130 • 8.589 With Lefdal we capture additional 8.000 revenues and customers 6.000 4.000 2.000 0 09/10 10/11 11/12 12/13 13/14

Market overview Own Franchise 100% = 28bn NOK 37 Elkjøp 23 141 27% Total # of 20 Others 44% stores 59 13% Expert 2 2% 8% 6% Lefdal Net on Net Komplett

Page 25 Country overview: Sweden

• Elgiganten market leader in PH Elgiganten Sweden mn NOK / CAGR 10.000 +9% • Strong brand awareness 9.066 7.933 8.000 7.354 7.300 • High growth opportunities 6.395 through consolidation 6.000 4.000

2.000

0 09/10 10/11 11/12 12/13 13/14

Market overview Own Franchise 100% = 45bn NOK

48 Elgiganten 170 20% 83 Others Total # of 35% 29 stores 13% MediaMarkt 10 3% 4% 11% Phone House 6% Siba 8% Dustin Elon Net on Net

Page 26 Country overview: Denmark

Elgiganten • Market leader in Denmark • #1 out-of-town mixed electrical mn NOK / CAGR 6.000 +12% specialist 4.987 5.261 5.000 • Very positive trend 4.247 4.000 3.325 3.600 3.000 2.000 1.000 0 09/10 10/11 11/12 12/13 13/14

Market overview

100% = 19bn NOK

Elgiganten Others 27% 29 32% 29 Total # of stores 2% 2% 11% Wupti Expert Computer City 4% 11% Whiteaway/ 11% Skousen Fona Bilka

Page 27 Country overview: Finland

Gigantti • Market leader mn NOK / CAGR • Extremely strong brand +9% 3.866 4.000 3.329 • Low price profile 3.070 2.723 2.862 • Strong growth despite difficult 3.000 macro environment 2.000 1.000

0 09/10 10/11 11/12 12/13 13/14

Market overview Own Franchise

100% = 15bn NOK

Others Gigantti 26% 25% 21 39 Total # of stores Musta Pörssi 2% 3% 18 Veikon Kone 13% 5% Verkkokauppa Tekniset 14% 12% Hypermarkets Expert

Page 28 Key initiatives

Core Business Core Business Synergies Opportunities

• Omni-channel • Kitchen • Head Office roadmap • Fona distribution • Cost reduction • KNOWHOW • Market consolidation • Co-branding • Jönköping warehouse • B2B • Scale benefits • Private Label • Co-branded store • IT rollout

Page 29 Omni-channel is on track

Online development Opportunities

6,000,000 25.0% • B2B Sales SOB% • Enhanced payment 5,000,000 20.0% • Omni-channel

4,000,000 •In-store navigation CAGR 15.0% 16,8% •In-store online/offline 3,000,000 integration 10.0% • Larger product range/availability 2,000,000 • Big data analytics and insight 5.0% 1,000,000 • Ship from store • Enhanced delivery 0 0.0%

Page 30 KNOWHOW concept is fully rolled out in phase 1

• Home delivery • Remote fix • Computer ready to go • Data recovery HDD • Heat pump installation • PC support @ home • iPad/tablet ready to • Data recovery SD/ • TV installation • TV support @ home go memory stick • Home cinema • Computer health • Mobile ready to go • Data erase installation check • TV ready to go • Cloud unlimited no. of • MDA installation w/ • Support agreement • GPS ready to go devices and w/o plumber data • Computer ready to go • Mobile security pack • Kitchen mount 3-part • Support agreement • Safe mobile phone • Whatever happens mobile

Page 31 KNOWHOW is going well - with lots of potential

Performance Future opportunities

Short term Long term

• Helping the customer where Use • Natural meeting point for 1.5mn 94.5 Focus on the product will be used KNOWHOW customers with tech issues @home • Build solid range of home to generate • Place to go to get all technology Number of repairs Tons of waste installation services footfall working annually collected

Same offer in • Selling services online and via • Educational material and SHOWHOW all channels contact centres demonstrations 2.3mn 236k Number of home Number of • Economies of scale to reduce • Seamless support in store and deliveries sold computer Using NDC as costs and increase efficiency Bringing @home part of service solutions to services sold • Getting everything to work for offering the customer the customers, no matter where annually bought • Shout about our great offer • 3D-printing in store Modern • Marketing of • Use physical stores as an Customisation of peripherals technology 130k 773k KNOWHOW advantage vs online players • Strengthen solution provider available Number of mobile Number of phone services sold insurance • Own stores in Sweden and • annually products sold Commercially visible Finland Brand visible • Strengthening Elkjøp’s brand Full roll out annually • Franchise in Norway, Sweden in the market • Installation companies branded and Finland • CRM activities on most AVS

NDC = Jönköping

Page 32 Jönköping project is on track

Current Future Change

95,000m2 107,000m2 +13 %

63,000 orders/day 110,000 orders/day +75%

27,000 pallet locations 57,000 pallet locations +111%

52 SEK/order line 40 SEK/order line -23%

SKU capacity: 8,000 SKU capacity: 19,000 +138%

Building the most advanced small box operation in Europe to support future multi-channel growth

Page 33 Private Label development very strong

Turnover Private Label Best Nordics CAGR +65%

Better

Good

12/13 13/14 14/15

EPP Share of total 2% 3% 5% revenue

Page 34 Kitchen is a platform for future growth

CAGR

+614%

2010/11 2011/12 2012/13 2013/14 2014/15

Share of total revenue 0% 0.3% 0.7% 0.8% 1.1%

Page 35 Kitchen initiatives will drive market share

Under development Opportunities

New drawing tool • Smart Home • Improved • Increase market share of quality and integrated products customer • Increase range of accessories service • Continue to develop after sales support Smart kitchen • Brand awareness and branding • Speakers centralised • SDA defined • Extend range range • In-store inspiration • Tablets and • Cross category benefits integration in • New marketing platform kitchen

Page 36 B2B an exciting opportunity

Store network to reinforce B2B focus Stores • Locations • Wide range of products and services +22% bn NOK 1.4 Buying and High volume in most categories gives cost advantages 1.1 • High volume reduces per visit cost volume • Buying terms and contacts

Logistics model and state of the art warehouse • Well organised central structure Logistics • Local adaptation and flexible • Low cost 13/14 14/15 Strong brand Strong • Good perception among people brand • Linked to technology services • KNOWHOW concept

Page 37 Nordics summary

• Number one position in all markets • The only true pan-Nordic player • Successful operating model • Market leadership • Retail excellence • Low cost • Strong price perception, and customer satisfaction is at an all-time high • Key initiatives to support our leadership position • Core business • Opportunities • Synergies

Page 38 Welcome and agenda

1. Introduction and Dixons Carphone update Sebastian James

2. Programme for the day Jaan-Ivar Semlitsch

3. Elkjøp overview and market background Jaan-Ivar Semlitsch

4. Elkjøp performance and key initiatives Jaan-Ivar Semlitsch

5. Sweden Niclas Eriksson i. Overview ii. Integration iii. Store tour locations

6. Q & A

Page 39 Niclas Eriksson Chain Manager Elgiganten Sweden

Good YoY revenue performance

Store Online Phone

4% 16% 10%

13/14 14/15 13/14 14/15 13/14 14/15

Page 41 Strong customer position

What is your preferred consumer electronic Top 10 retail brands in Sweden 2014 retailing brand? (last year’s position in brackets) 1.(1) Ikea 40% 2.(2) Clas Ohlson Elgiganten 35% 3.(6) Apoteket 30% Media Markt 4.(5) Elgiganten 25% Onoff 20% 5.(3) Maxi Ica Stormarked 15% Siba 6.(25) Stadium 10% NetOnNet 7.(4) Systembolaget 5% 8.(7) ÕoB 0% Elon 9.(14) Akademibokhandeln 2011 2014 10.(15) Kjell & Company

Page 42 Phone House small boxes as part of future offer

Drop-in

Generalist Specialist

Destination

Page 43 Encouraging early results

Revenue index pilot GM index pilot

Liljeholmen Liljeholmen

Solna Solna +47 +55 Skärholmen Skärholmen

Reference Reference

Footfall index pilot Revenue accessories index pilot

Liljeholmen Liljeholmen

Solna Solna +33 Skärholmen Skärholmen +48

Reference Reference

Page 44 Synergy benefits

• One back office from June 3rd 2015 • Successful trial period rebranding 3 Phone House stores to Elgiganten Phone House • Shared back office systems – expected during autumn 2015 • Rebranding small box portfolio – 62 stores in 10 weeks this September • SWAS trial

Integration cost savings

Buying & logistics savings

Brand and channels

Incremental connectivity revenues

B2C services B2B revenues

FY 14/15 FY 15/16 FY 16/17

Page 45 3 store visits

1. Elgiganten 2. Phone House 3. Elgiganten Phone House Kungens Kurva Nacka forum Liljeholmen

1 3 2

Page 46 Q & A