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Interim Results 2005/06 Media Presentation 18 January 2006 John Clare Group Chief Executive Trading Update

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Interim Results 2005/06 Media Presentation 18 January 2006 John Clare Group Chief Executive Trading Update Interim Results 2005/06 Media Presentation 18 January 2006 John Clare Group Chief Executive Trading update • Total sales +5% • LfL sales +2% • Peak dominated by new technology products Units Value Flat Panel Televisions +111% +90% MP3 players incl iPods +141% +127% Satellite Navigation +291% +167% Laptops +78% +40% 8 weeks to 7 January 2006 vs 8 weeks to 8 January 2005 Product information relates to retail sales 3 Trading update Sales Total Like for like Total Group +5% +2% Electricals +7% +4% Computing +10% +3% Communications (27%) (28%) UK retail +3% +1% International retail +11% +4% 8 weeks to 7 January 2006 vs 8 weeks to 8 January 2005 4 Kotsovolos • Total sales down 1% • LfL down 5% • 2 new mega stores opened in Athens • Strong performance across the year 8 weeks to 7 January 2006 vs 8 weeks to 8 January 2005 5 The Link • Total sales down 27% • LfL down 28% • Unit connections growing • Up 1% over peak • New advertising engaging customers • LfL excludes: Volume bonuses, promotional revenues, commissions & other recurring revenue 8 weeks to 7 January 2006 vs 8 weeks to 8 January 2005 6 Interim Results Sales £million 05/06 04/05 YOY UK Electricals 1,292 1,319 (2%) International Electricals 1,026 834 +23% Total Electricals 2,318 2,153 8% UK Computing 842 854 (1%) International Computing 123 94 +31% Total Computing 965 947 +2% Total Communications 224 283 (21%) Total Retail 3,507 3,383 4% Gross margins Flat year on year 28 weeks to 12 November 2005 vs. 28 weeks to 13 November 2004 Excludes discontinuing operations 7 Profit before tax £million 05/06 04/05 YOY Reported PBT 106.1 133.5 (21%) Deduct: Net mark to market gains (8.8) - Profit on sale of investments (2.9) (12.2) Add: Amortisation of acquired intangibles 0.9 0.5 One time IS outsourcing costs 2.2 - Underlying Profit Before Tax 97.5 121.8 (20%) Adjusted diluted EPS 3.8p 4.4p (14%) 28 weeks to 12 November 2005 vs. 28 weeks to 13 November 2004 * Underlying results, for definition see appendix 8 Cost reduction • On target to save £30 million in 05/06 • Further £20 million identified in 06/07 • Includes Distribution and IT changes 9 Acquisitions • Equanet • UK B2B operator - PC World Business • Consideration of £13m in August 2005 • Markantalo • No.2 Electrical retailer in Finland • Consideration c. £33m January 2006 • Clear no.1 position for DSGi in Finland • Both deals earnings enhancing in first full year 10 Share buyback & dividends Share buyback • 118.4 million shares purchased for £184.8m • 6.1% of shares in issue since commencement of buyback • Interim dividend 1.92p +5% 11 Group priorities Capital Cost Discipline Management Margin Retail Protection Innovation 12 Customer support agreements • Enhanced support agreements successfully launched • Monthly pay as you go option • Positive early experience • European roll-out • PC City, Elkjøp, UniEuro, Kotsovolos, Electro World 13 Extended product offering • Innovation on ranges • Lighting, Essentials, Digital and PC products • New internet music department • Greater availability of stock in store 14 Extended product offering • Digital living innovation • Interactive demonstrations • Improved merchandising • New products • Flat panel televisions in PC World and PC City 15 Store innovation - Press F1 16 In-store initiatives • In-store initiative giving store colleagues • Greater involvement • Increased responsibility • Store based, not individual commission structure • Improves: • Customer satisfaction measurements • Average selling prices • Attachments • Colleague motivation 17 Online business • 47% growth in Group online sales over peak • Improvements to online merchandising • Instant online credit approval • Relaunch of Partmaster.co.uk • Collect@store doubling online sales at PC World 18 Summary • Strong performance of digital gift items over Peak • Cautious on prospects for markets over the balance of the year • Well placed for further progress 19 Interim Results 2005/06 Media Presentation 18 January 2006.
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