PR 16/13 7.00am, Tuesday, 17 December 2013 DIXONS RETAIL PLC ENCOURAGING FIRST HALF EXCELLENT PROGRESS MADE ON STREAMLINING THE GROUP

Dixons Retail plc, Europe’s leading specialist multi-channel electrical retailing and services company, today announces Interim results for the 6 months to 31 October 2013.

KEY HIGHLIGHTS  Encouraging first half with Group like for like sales(3) up 6%.  Improved profitability with Underlying Group EBIT(6) up 52% to £48.1 million. - UK & Ireland delivered a strong performance, with underlying operating profits up five-fold to £31.4 million. - Northern Europe continues to perform well in competitive markets, delivering an underlying operating profit of £45.5 million.  Good cash generation, achieving net cash of £55.4 million compared to a net debt position of £21.9 million in the first half of last year.  Excellent progress made on the strategic goal to focus on our leading market positions: - Completed the disposals of Electroworld operations in Turkey and Unieuro in Italy. - Completion of the disposal of PIXmania expected by the end of December.  On track to reduce costs by our targeted £45 million in the current year.  Return on Capital Employed(8) in the 12 months to 31 October 2013 has improved to 15.6%, up from the 11.6% reported at 30 April 2013.

Sebastian James, Chief Executive commented: “I am pleased to report that we have had a successful first half with customer satisfaction and profitability up considerably year on year. In fact, as a Group we are reporting an underlying profit for the first time in six years. The UK & Ireland, in particular, has performed very well while our Nordic business is more than holding its own in a - somewhat - more competitive market. Our Greek business continues to grow market share against some gusty headwinds.

I am very happy that, in the last few months, we have been able to streamline the Group substantially. The transactions that we have announced with PIXmania, Unieuro and Electroworld in Turkey represent a real achievement and will leave Dixons in a leadership position in all of our major markets. Quite apart from removing a significant profit-drag on the business, these changes mean that we can really focus on new and exciting opportunities to do more for our customers and suppliers, and on working more closely to drive tangible benefits from being part of our Group.

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We remain cautious about the outlook for consumers in our markets; very strong trading this time last year, together with the fact that we have now annualised Comet’s exit makes the second half more challenging. Nevertheless, we have had a great first half and our stores have never looked better - or had better offers for customers.”

FINANCIAL HIGHLIGHTS  Total Underlying Group sales(1) of £3.43 billion (2012/13(2) £3.20 billion), up 5% on a currency neutral basis.  Underlying(1) Group gross margins down 0.6%.  Underlying pre-tax profit(1) of £30.2 million (2012/13(2) £14.0 million). - Total profit before tax from continuing operations of £22.7 million (2012/13(2) £0.6 million), after net non-underlying charges of £7.5 million.  Underlying diluted earnings per share(1) of 0.5 pence (2012/13(2) 0.2 pence). Basic earnings per share for continuing operations of 0.3 pence (2012/13(2) nil pence).  Total loss after tax, including the discontinued operations of Electroworld Turkey, Unieuro and PIXmania, of £83.5 million (2012/13 £101.0 million).

6 months ended 31 October 2013 Underlying Sales Total sales Total sales Like for like Sterling Local currency sales UK & Ireland +7% +7% +9%

Northern Europe +8% +4% +3% Nordics & Central Europe Greece (1)% (7)% (14)%

Total Underlying Group +7% +5% +6%

— Ends — For further information David Lloyd-Seed IR & Corporate Affairs Director, Dixons Retail 01727 205 065 Hannah Collyer Head of Media Relations, Dixons Retail 01727 203 041 Nick Cosgrove / Helen Smith Brunswick Group 020 7404 5959

A live video webcast of the presentation being held this morning will be available from www.dixonsretail.com/webcast at 09:00 (click "Investors", then "Results, Reports & Presentations"). Information on Dixons Retail plc is available at http://www.dixonsretail.com Follow us on Twitter @DixonsRetail Information contained on the Dixons Retail plc website or the Twitter feed does not form part of this announcement and should not be relied on as such.

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Underlying sales and profit analysis(2)

Underlying sales Underlying profit/(loss)

6 months ended 6 months ended Like for 6 months ended 6 months ended 31 October 2013 31 October 2012 like(3) 31 October 2013 31 October 2012 Note £million £million % change % change £million £million UK & Ireland (4) 1,856.4 1,732.8 7% 9% 31.4 6.9

Northern Europe (5) 1,435.4 1,324.9 8% 3% 45.5 48.5

Greece 139.6 141.2 (1)% (14)% (5.8) (4.1)

Central costs (7.5) (7.6)

Total Group Retail 3,431.4 3,198.9 7% 6% 63.6 43.7

Property losses (15.5) (12.1)

EBIT (6) 48.1 31.6

Underlying net finance costs (17.9) (17.6)

Group underlying profit before tax 30.2 14.0

Notes (1) Throughout this report, references are made to ‘underlying’ performance measures. Underlying results are defined as excluding trading results from businesses exited (PC City Spain and Equanet), amortisation of acquired intangibles, net restructuring and business impairment charges and other one off non-recurring items, profits / (losses) on sale of investments or businesses, net interest on defined benefit pension schemes, net fair value remeasurements of financial instruments and, where applicable, discontinued operations (Electroworld Turkey, Unieuro and PIXmania). These excluded items are described as ‘non-underlying’. The financial effect of these items is shown in the analyses on the face of the income statement and in notes 3 and 8 to the financial information. (2) Historically, the Group has prepared its financial statements to the Saturday closest to its accounting reference date of 30 April, meaning that financial years have comprised 13 four week financial periods. This has resulted in the interim financial statements historically being drawn up for 24 weeks ended in mid October. Commencing 30 April 2013, the Group now draws up its accounts for years ending on 30 April comprising twelve calendar monthly periods and accordingly, the Group’s interim period now ends on 31 October. As a result, financial information for the 6 months ended 31 October 2012 has been presented for the first time as a comparative. (3) 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. (4) UK & Ireland comprises Currys, PC World, CurrysDigital, Dixons Travel, Harrods concession, operations in Ireland, PC World Business and KNOWHOW. (5) Northern Europe comprises the Elkjøp group and Electroworld in the Czech Republic and Slovakia. (6) Earnings Before Interest and Tax (EBIT) equates to underlying operating profit and is defined as underlying earnings from continuing retail operations, after property losses, before deduction of net finance costs and tax. (7) Free Cash Flow relates to continuing operations and comprises net cash flow from operating activities before special pension contributions, less net finance costs, less income tax paid and net capital expenditure. (8) The Group calculates ROCE on a pre tax and lease adjusted basis. The return is based on underlying operating profit, adjusted to add back the estimated interest component associated with capitalising operating lease costs. Capital employed is based on net assets including capitalised leases, but excluding goodwill, cash, tax and the defined benefit pension obligations. The calculation is performed on a moving annual total in order to best match the return on assets in a year with the assets in use during the year to generate the return . (9) Unless otherwise noted, throughout this statement figures relate to continuing operations. Discontinued operations comprise Electroworld Turkey, Unieuro and PIXmania. Total revenue including discontinued operations was £3,892.1 million (2012/13 £3,819.7 million). (10) 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.

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Strategic Priorities

1) Deliver a sustainable business model in a multi-channel world We believe that we have created a sustainable business model for a multi-channel world by focusing on what our customers, and suppliers, want. Customers tell us that, as well as great value, they want advice on technology and to experience products to ensure they choose the right one. Suppliers want customers to experience their products, particularly their latest innovations. We are very well placed to meet the needs of both, to create an exciting and engaging shopping trip for customers. In building this sustainable model we have achieved the following: i. We monitor over 20,000 products daily to ensure that we offer very competitive prices every day. On average, in the UK & Ireland, our prices are 5-10% cheaper than our multi-channel competitors and competitive with pure online competitors. ii. In the UK & Ireland our advocacy ratings continue to improve with 95% of customers “likely” to recommend our stores to their friends and family. Our more important measure of those customers “very likely” to recommend our stores, recently hit a record high of 83%. iii. We have well established and strong relationships with suppliers. Online and in-store we ensure that our customers experience their brands with the support of our expert colleagues, who are trained to explain the features and benefits of their latest products. In the UK & Ireland we have Customer Journeys to help customers choose the right solution for their needs and in support of this, we often secure exclusive Our Experts Love products. iv. Our KNOWHOW end-to-end services brand continues to go from strength to strength, and we have started to roll it out into the Nordics. We have also added new services such as white goods repair and Showhow one-to-one tutorials, as well as improved delivery options for customers, including same day delivery. v. We continue to reduce costs and are on target to achieve our stated £45 million this year.

2) Be a leader in each of the markets in which the Group operates We know that we deliver the strongest offer for customers, the most effective route to market for suppliers and the best return for shareholders by focusing on those territories where we are the market leading multi-channel electrical specialist. We are the number one player in the UK & Ireland, Nordics and Greece, where we continue to grow market share, particularly as competitors exit our markets. Over the last 12 months we successfully streamlined the Group with transactions either completed, or agreed, to dispose of the Electroworld operations in Turkey, Unieuro operations in Italy, as well as the pure play operations of PIXmania.

3) Leverage international scale and knowledge to deliver Group benefits With leading multi-channel operations across the UK, Ireland, Nordics and Greece, we have started, over the last 18 months, to share best practices that really make a difference for customers, for example: i. Our Customer Journeys, now well embedded in the UK & Ireland, help customers choose exactly the right product for their needs. Often these are products that we have carefully selected with suppliers and that earn the badge of Our Experts Love. This concept has been adapted from the Win model used by our Nordic business.

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ii. Our shared services centre in the Czech Republic is fast becoming a real centre of expertise in many back office functions. With rigorous process improvement, high quality staffing and lower cost structures we can exploit these strengths to lower our operating costs right across the Group. iii. Through our sourcing office in China, we offer exclusive brands, enabling us to achieve better margins in many product categories, such as accessories and entry price point products. iv. Earlier in 2013 we initiated our store management swap programme. This has got off to a good start, highlighting many exciting opportunities, after a manager from the UK and Norway exchanged places to learn what is done well in their sister operations. v. Having introduced KNOWHOW into the Nordics last year, we now have a KNOWHOW bar in each megastore.

These strategic priorities enable us to improve our EBIT margin as well as, of course, to generate cash and the UK & Ireland and Northern European divisions remain on track for a 3-4% EBIT return. In Greece, while the market remains challenging, losses are being contained through careful management actions. In June we introduced a Return On Capital Employed (“ROCE”) metric for the Group alongside cash and profit measures. We believe that this combination of metrics creates greater alignment between management and shareholders in maximizing the focus on driving shareholder returns. Over the last 12 months ROCE has improved to 15.6%, up by 1.1% for continuing operations since 30 April 2013, and by 4.0% overall.

Business performance The Group had an encouraging start to the year, outperforming in most of our markets and gaining share with underlying Group sales of £3,431.4 million (2012/13 £3,198.9 million), up 6% on a like for like basis. Group gross margins were down 0.6% across the half, as we manage the levers in our business to deliver even better value for our customers as well as the competitive environment in the Nordics. Underlying earnings before interest and tax were significantly improved year on year to £48.1 million (2012/13 £31.6 million). Underlying profit before tax was £30.2 million (2012/13 £14.0 million).

UK & Ireland

The UK & Ireland division had a particularly strong start to the year with total sales up 7% at £1,856.4 million (2012/13 £1,732.8 million) and like for like sales up 9% in the half. We are very pleased to have substantially increased first half profitability with underlying operating profit improving by £24.5 million to £31.4 million (2012/13 profit of £6.9 million).

This strong performance has partly been driven by the continued benefit of the exit of competitors, most notably Comet at the end of 2012, which has now been anniversaried. Our relentless drive for better value, choice and service for customers has also helped CurrysPCWorld gain further market share which we now believe stands at approximately 23%. Warmer weather in the early part of the period shifted trading patterns a little, but despite the anniversary of sporting events the UK & Ireland delivered a very strong second quarter with like for likes up 12%.

KNOWHOW, our end-to-end services offer for customers, continues to go from strength to strength with added value services sales growing by 13% to £19.6 million in the first half. Our logistics infrastructure offers customers a variety of choices for delivery and installation to suit their needs, from same day, to selected time slots and market leading prices, and in many instances free. Over the last 12 months we carried out 2.6 million deliveries and installations ensuring our customers are kept

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informed of their delivery all the way from placing their order to the knock on the door. Showhow, where we offer customers individual tutorials on their new products has been very well received with 76,000 Showhows being carried out since their introduction in September / Autumn 2012. Over the last 12 months we have sold 1.1 million KNOWHOW Cloud services and carried out approximately 750,000 laptop, TV and tablet repairs.

We continue to innovate in our store designs and during the period we opened a new High Street format store in Bluewater and a new CurrysPCWorld 2-in-1 superstore in Aylesbury. These stores are trialing a number of new retailing innovations, such as mobile and flexible fittings, with all new play tables moveable to adjust to seasonal and technology trends, Showhow areas around the store and heat map cameras to understand how customers use the store and interact with product displays. Results from both stores have so far been encouraging and many of the innovations will be rolled out into other stores.

We have also made further improvements to our online stores of www.currys.co.uk and www.pcworld.co.uk, with richer content including customer journeys complementing those in our physical stores. Our store colleagues can now offer the extended range available on our websites to customers in store. With the disposal of PIXmania, the UK & Ireland has been transitioning its e- commerce platform to the UK, a move that will enable us to make our multi-channel offering truly market leading.

Northern Europe

The Northern Europe division continues to perform well with sales growing by 4% at constant exchange rates, while in sterling, underlying sales grew by 8% to £1,435.4 million (2012/13 £1,324.9 million). Like for like sales were up 3% as the Elkjøp Group continued to gain share across its markets. Underlying operating profits were £45.5 million (2012/13 £48.5 million).

Having experienced exceptional growth across the Nordics over the last 2-3 years, sales growth has now returned to more normalised levels and continues to be ahead of competitors. The Elkjøp Group has gained share across the Nordics in the half year, and has delivered another year of record turnover. The competitive landscape, particularly in Norway, Sweden and Denmark remains challenging, but a low cost structure and an efficient sales and logistics platform enables the Elkjøp Group to continue offering customers great value.

We installed ‘Happy or Not’ kiosks, where customers can score their store experience, in all of our Northern Europe stores. Satisfaction scores are high and have risen since the introduction of the kiosks. As a dynamic customer satisfaction measurement tool, it enables our stores to respond through, for example, adjusted shift patterns in real time. We have installed the technology in a small number of UK stores and are encouraged by early indications.

During October this year, we rebranded the Elkjøp Group’s brands in Denmark and Norway. The new logo has a more modern look and underlines our commitment to our customers. The logo launch has been a huge success, and next year Finland and Sweden will be rebranded.

We continue to embed the KNOWHOW services brand into the Nordics with KNOWHOW bars in all our megastores. Initial customer response to the range of KNOWHOW services has been very encouraging.

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Greece Total underlying sales in Kotsovolos were £139.6 million (2012/13 £141.2 million). Like for like sales were down 14%. Strong cost control limited the overall effect on underlying operating loss, with an increase of £1.7 million to £5.8 million (2012/13 loss of £4.1 million).

The Greek economic environment continues to be challenging. Additionally, the prior year reflected an unusually hot summer that drove air conditioning sales versus a cooler summer this year, and the digital switchover in Athens. Against this backdrop, Kotsovolos’ performance in the first half was robust.

The management team in Greece continues to take a number of actions to deal with this trading environment and to provide a stronger base for the business going forward. With learnings from the UK & Ireland and Nordics businesses, Kotsovolos has improved its offer of complete solutions for customers, resulting in higher attach rates of products and services. The outlook in Greece continues to be challenging, but we believe that Kotsovolos is a fundamentally sound business and will return to profitability in due course.

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Financial position The Group has delivered a strong start to the year against the ongoing financial priorities of improving profitability, strengthening the balance sheet and driving shareholder returns:

 Positive Free Cash Flow of £59.0 million generated;  Net funds of £55.4 million, this is: - £13.3 million better than the net funds of £42.1 million at the end of the 2012/13 financial year; and - £77.3 million better than the net debt of £21.9 million at 31 October 2012;  The £200 million revolving credit facility (“the RCF”) has been undrawn since October 2011 and remains so up to the date of this announcement;  On target to reduce costs by £45 million this financial year; and  Return on Capital Employed for the 12 months to 31 October 2013 was 15.6%. Since 30 April 2013, this represents an improvement of 1.1% for continuing operations, and 4.0% overall.

Free Cash Flow

6 months ended 6 months ended 31 October 2013 31 October 2012 £million £million Underlying profit before tax 30.2 14.0 Depreciation and amortisation 60.4 57.3 Working capital 5.3 67.1 Taxation (24.9) (2.3) Capital expenditure (41.7) (38.9) Other items 35.0 1.9

Free Cash Flow before restructuring items 64.3 99.1 Net restructuring (5.3) (2.4)

Free Cash Flow 59.0 96.7

Free Cash Flow was £59.0 million (2012/13 £96.7 million). This reflects continued strong cash generation, especially given the reversal of working capital timing benefits from the end of the last financial year, mainly in respect of stock payments relating to the strong Easter sales.

Taxation paid increased, mainly as a result of earlier payment of Norwegian taxes falling into the first half of this financial year.

Other cash items of £35.0 million (2012/13 £1.9 million) comprise the add back of non-cash costs included in profit, such as share option charges and property loss provision charges, as well as other cash movements including settlements of certain hedge contracts. The improvement year on year is primarily due to hedges relating to foreign currency cash balances, where hedge inflows have acted as an offset to the revaluation of foreign cash balances noted in the funding analysis below. The prior year also included costs relating to the refinancing of the RCF and the 2012 Bond redemption.

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Funding At 31 October 2013 the Group had net funds of £55.4 million compared to net debt of £21.9 million at 31 October 2012 and net funds of £42.1 million at the end of the 2012/13 financial year.

6 months ended 6 months ended 31 October 2013 31 October 2012 £million £million Opening net funds / (debt) 42.1 (104.0) Free Cash Flow 59.0 96.7 Issue of ordinary share capital 5.7 0.7 Discontinued Operations (29.3) (8.9) Special pension contributions (10.0) (10.0)

Other items (12.1) 3.6 Other movements in net debt (45.7) (14.6)

Closing net funds / (debt) 55.4 (21.9)

Net funds / (debt) is stated inclusive of restricted funds of £100.3 million (2012/13 £104.7 million), which predominantly comprise funds held under trust for potential customer support agreement liabilities.

The improvement in net funds was due to the Free Cash Flow generated, partly offset by £10.0 million paid to the UK Defined Benefit Pension Scheme under the terms of the deficit reduction plan and cash outflows in discontinued operations of £29.3 million. The £12.1 million outflow in other items mainly comprised the revaluation of cash balances held in non UK subsidiaries.

Adjustments to underlying results Underlying profit before tax is reported before net non-underlying charges before tax of £7.5 million. 6 months ended 6 months ended 31 October 2013 31 October 2012 £million £million Underlying profit before tax 30.2 14.0 Add / (deduct) non-underlying items: Operating items 1.3 (0.7) Financing items (8.8) (12.7)

Total net non-underlying charges (7.5) (13.4)

Profit before tax 22.7 0.6

The main component of non-underlying items comprises £8.5 million of net pension interest costs, which owing to their non- cash nature and volatility to “point in time” remeasurement are treated as non-underlying. The prior year included Bond redemption related charges.

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Discontinued operations Discontinued operations comprise Electroworld Turkey, Unieuro and PIXmania and are made up of the disposal losses of £(75.6) million and post tax trading losses, including any restructuring and impairments, of £(19.4) million (2012/13 losses of £(101.0) million). The transactions are described as follows:  On 31 October 2013, the Group completed the disposal of its Electroworld Turkey operations to Bimeks.  On 29 November 2013, the disposal completed of Unieuro in Italy to a new holding company, Italian Electronics Holdings s.r.l. (IEH), that now indirectly owns both Unieuro and Marco Polo in Italy. Under the terms of the agreement, Dixons Retail left Unieuro with €25 million of cash and has invested €7.5 million in the form of a loan note. Dixons Retail now owns a 15% share in IEH.  On 27 September 2013, the Group announced it had signed an agreement to sell PIXmania S.A.S. to mutares A.G.(“mutares”), a German listed industrial holding company. As part of its purchase, mutares has developed a robust plan to build on PIXmania’s pure play e-commerce operations as well as to further develop its market leading software platform. In order to support this plan, and to provide ongoing funding for PIXmania, the Group will provide approximately £59 million (€69 million) of ring-fenced capital. Completion of this transaction is expected to take place at the end of December 2013.

Property losses Underlying property losses were £15.5 million (2012/13 loss of £12.1 million), mainly comprising UK store re-site and exit costs.

Underlying net finance costs Underlying net finance costs were £17.9 million (2012/13 £17.6 million). The increase was primarily due to the net effect of issuance of the 2017 Notes, redemption of the 2012 Bonds and associated hedges, and partial redemption of the 2015 Notes.

Tax The Group’s underlying tax charge is based on current expectations of the tax charge to be incurred on full year earnings which equates to an effective rate of 35% (2012/13 full year 36%). The rate has decreased marginally year on year owing mainly to the UK rate of taxation reducing from 23% to 20% by March 2015. Our reported rates decrease substantially from 52% in 2012/13 owing to the exclusion of the discontinued loss making businesses.

Pensions The IAS 19 accounting deficit of the defined benefit section of the UK pension scheme amounted to £432.6 million compared to £406.4 million at 30 April 2013 and £289.8 million at 31 October 2012. The increase since 30 April 2013 arises from both a decrease in the valuation of assets and an increase in the valuation of the liabilities. The liability increase arises mainly from adverse changes in actuarial assumptions, including interest rates, used in the valuation of these liabilities.

The last triennial actuarial valuation showed a net deficit of £239.0 million whereby the recovery plan agreed with the trustee results in £20 million payable in 2013/14 which rises gradually thereafter to £35 million by 31 March 2021. The next triennial valuation is as at 31 March 2013 with the results expected in 2014.

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Financial Information

Consolidated Income Statement

6 months ended 31 October 2013 Unaudited

Non- Underlying* underlying* Total Note £million £million £million Continuing operations Revenue 2 3,431.4 – 3,431.4

Operating profit 2,3 48.1 1.3 49.4

Finance income 2.0 0.1 2.1 Finance costs (19.9) (8.9) (28.8) Net finance costs 4 (17.9) (8.8) (26.7)

Profit before tax 30.2 (7.5) 22.7

Income tax expense 5 (12.8) 1.6 (11.2) Profit after tax – continuing operations 17.4 (5.9) 11.5

Loss after tax – discontinued operations 8 – (95.0) (95.0)

Profit / (loss) after tax for the period 17.4 (100.9) (83.5)

Attributable to: Continuing operations Equity shareholders of the parent company 17.4 (5.9) 11.5 Discontinued operations Equity shareholders of the parent company – (94.2) (94.2) Non-controlling interests – (0.8) (0.8) 17.4 (100.9) (83.5)

(Loss) / earnings per share (pence) 6 Basic - total (2.3)p Diluted - total (2.3)p Basic - continuing operations 0.3p Diluted - continuing operations 0.3p

Underlying earnings per share (pence) 1,6 Basic - continuing operations 0.5p Diluted - continuing operations 0.5p

* Underlying figures exclude the trading results of businesses exited, amortisation of acquired intangibles, net restructuring and business impairment charges and other one off, non-recurring items, profits / losses on sale of investments or businesses, expected return and interest on defined benefit pension schemes, net fair value remeasurements of financial instruments and, where applicable, discontinued operations. Such excluded items are described as ‘Non-underlying’. Further information on these items is shown in notes 1, 2, 3, 4, 5 and 8.

Businesses exited comprise businesses which have either been sold or closed. Certain businesses meet the criteria of discontinued operations as stipulated by IFRS 5 and are disclosed as such, whereas the remainder do not. Accordingly, despite all of the business exits having similar characteristics, the disclosures within non-underlying items differ across these businesses. Further information is shown in notes 3 and 8

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Financial Information

Consolidated Income Statement (continued)

6 months ended 31 October 2012 Year ended 30 April 2013 Unaudited Audited Restated† Non- Non- Underlying* underlying* Total Underlying* underlying* Total Note £million £million £million £million “£million £million Continuing operations Revenue 2 3,198.9 47.3 3,246.2 7,169.6 82.6 7,252.2

Profit from operations before associates 31.5 (0.7) 30.8 181.5 (35.8) 145.7 Share of post tax results of associates 0.1 – 0.1 – – – Operating profit 2,3 31.6 (0.7) 30.9 181.5 (35.8) 145.7

Loss on sale of business – – – – (9.6) (9.6)

Finance income 6.2 2.7 8.9 7.2 3.3 10.5 Finance costs (23.8) (15.4) (39.2) (42.6) (22.3) (64.9) Net finance costs 4 (17.6) (12.7) (30.3) (35.4) (19.0) (54.4)

Profit before tax 14.0 (13.4) 0.6 146.1 (64.4) 81.7

Income tax expense 5 (6.0) 3.6 (2.4) (52.8) 10.3 (42.5) Profit / (loss) after tax – continuing operations 8.0 (9.8) (1.8) 93.3 (54.1) 39.2

Loss after tax – discontinued operations 8 – (101.0) (101.0) – (211.6) (211.6)

Profit / (loss) after tax for the period 8.0 (110.8) (102.8) 93.3 (265.7) (172.4)

Attributable to: Continuing operations Equity shareholders of the parent company 8.1 (9.8) (1.7) 93.4 (54.1) 39.3 Non-controlling interests (0.1) – (0.1) (0.1) – (0.1) Discontinued operations Equity shareholders of the parent company – (95.0) (95.0) – (201.8) (201.8) Non-controlling interests – (6.0) (6.0) – (9.8) (9.8) 8.0 (110.8) (102.8) 93.3 (265.7) (172.4)

(Loss) / earnings per share (pence) 6 Basic - total (2.7)p (4.5)p Diluted - total (2.7)p (4.5)p Basic - continuing operations – 1.1p Diluted - continuing operations – 1.1p

Underlying earnings per share (pence) 1,6 Basic - continuing operations 0.2p 2.6p Diluted - continuing operations 0.2p 2.5p

† Results for the year ended 30 April 2013 have been restated for the impact of the amendment to IAS 19 ‘Employee Benefits’, which is described further in note 1. Underlying figures for the year ended 30 April 2013 have been re-presented to exclude the trading results of businesses exited / to be exited for which the decisions were made or executed in 2013/14.

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Financial Information

Consolidated Statement of Comprehensive Income and Expense

6 months ended 6 months ended Year ended 31 October 2013 31 October 2012 30 April 2013 Unaudited Unaudited Audited Restated £million £million £million

Loss for the period (83.5) (102.8) (172.4)

Actuarial (losses) / gains on defined benefit pension schemes - UK (27.7) (31.4) (151.5) - Overseas – – 1.6 Cash flow hedges: Fair value remeasurement gains / (losses) 5.9 5.7 (12.7) (Gains) / losses transferred to carrying amount of inventories (5.1) (5.1) 5.4 Losses / (gains) transferred to income statement 6.7 (1.9) 3.4 Net investment hedges: Fair value remeasurement gains – 1.2 0.9 Investments: Fair value remeasurement gains – 0.2 0.4 Tax on items taken directly to equity (7.3) 4.1 32.4 Currency translation movements (33.9) 4.9 31.9 Net expense recognised directly in equity (61.4) (22.3) (88.2)

Total recognised expense for the period (144.9) (125.1) (260.6)

Attributable to: Equity shareholders of the parent company (144.1) (118.5) (250.4) Non-controlling interests (0.8) (6.6) (10.2) (144.9) (125.1) (260.6)

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Financial Information

Consolidated Balance Sheet

31 October 2013 31 October 2012 30 April 2013 Unaudited Unaudited Audited Note £million £million £million Non-current assets Goodwill 639.3 702.0 704.2 Intangible assets 57.7 92.1 66.4 Property, plant & equipment 367.0 461.8 434.0 Investments in associates 0.6 3.6 0.5 Trade and other receivables 16.1 24.6 20.6 Deferred tax assets 141.3 148.4 150.9 1,222.0 1,432.5 1,376.6 Current assets Inventories 965.3 1,138.0 895.4 Trade and other receivables 304.5 355.5 304.5 Income tax receivable 2.8 3.1 5.4 Short term investments 2.3 2.2 2.4 Cash and cash equivalents 7 381.2 481.5 405.3 1,656.1 1,980.3 1,613.0 Assets held for sale 8 195.1 – 15.1 Total assets 3,073.2 3,412.8 3,004.7

Current liabilities Bank overdrafts 7 – (12.7) (17.7) Borrowings 7 – (147.5) (4.5) Obligations under finance leases (2.0) (3.3) (2.0) Trade and other payables (1,656.4) (1,969.2) (1,667.7) Income tax payable (55.8) (67.5) (70.4) Provisions (15.9) (17.5) (36.8) (1,730.1) (2,217.7) (1,799.1) Net current liabilities (74.0) (237.4) (186.1)

Non-current liabilities Borrowings 7 (246.2) (244.7) (245.4) Obligations under finance leases (92.4) (97.4) (96.0) Retirement benefit obligations 9 (435.1) (294.1) (409.1) Other payables (240.9) (257.2) (262.5) Deferred tax liabilities (11.1) (12.6) (11.3) Provisions (16.5) (15.0) (26.1) (1,042.2) (921.0) (1,050.4) Liabilities directly associated with assets held for sale 8 (290.7) – (7.9) Total liabilities (3,063.0) (3,138.7) (2,857.4)

Net assets 10.2 274.1 147.3

Capital and reserves Called up share capital 91.4 90.4 90.7 Share premium account 177.7 170.1 172.7 Other reserves (512.9) (520.9) (520.9) Retained earnings 253.4 534.6 405.6 Equity attributable to equity holders of the parent company 9.6 274.2 148.1 Equity non-controlling interests 0.6 (0.1) (0.8) Total equity 10.2 274.1 147.3

Dixons Retail plc Page 14 of 37

Financial Information

Consolidated Cash Flow Statement

6 months ended 6 months ended Year ended 31 October 2013 31 October 2012 30 April 2013 Unaudited Unaudited Audited Re-presented Note £million £million £million Operating activities - continuing operations Cash generated from operations * 7 127.6 167.9 402.9 Special contributions to defined benefit pension scheme (10.0) (10.0) (20.0) Income tax paid * (24.9) (2.3) (20.0) Net cash flows from operating activities 92.7 155.6 362.9

Investing activities - continuing operations Purchase of property, plant & equipment and other intangibles * (41.7) (38.9) (78.1) Purchase of subsidiaries (0.1) (0.2) (0.2) Sale of business – – 3.4 Interest received * 15.4 3.8 16.8 (Increase) / decrease in short term investments (0.1) 5.2 5.3 Dividend received from associate – – 0.4 Net cash flows from investing activities (26.5) (30.1) (52.4)

Financing activities - continuing operations Issue of ordinary share capital 5.7 0.7 3.6 Purchase of own shares – – (0.3) Capital element of finance lease payments (0.9) (1.0) (2.1) Interest element of finance lease payments * (2.5) (3.0) (6.0) Decrease in borrowings due within one year – (15.5) (160.0) Increase in borrowings due after more than one year – 97.1 97.1 Interest paid * (14.9) (30.8) (114.1) Net cash flows from financing activities (12.6) 47.5 (181.8)

Increase in cash and cash equivalents (i) Continuing operations 53.6 173.0 128.7 Discontinued operations 8 (35.1) (6.5) (51.4) 7 18.5 166.5 77.3

Cash and cash equivalents at beginning of period (i) 7 387.6 301.0 301.0 Currency translation differences (11.0) 1.3 9.3 Cash and cash equivalents at end of period (i) 7 395.1 468.8 387.6

Reconciliation to items disclosed on the balance sheet: Cash and cash equivalents (i) 381.2 481.5 405.3 Bank overdrafts – (12.7) (17.7) Cash and cash equivalents included in assets held for sale 17.4 – – Bank overdrafts included in liabilities directly associated with assets held for sale (3.5) – – 7 395.1 468.8 387.6

Free Cash Flow (ii) 59.0 96.7 201.5

(i) For the purposes of this cash flow statement, cash and cash equivalents comprise those items disclosed as ‘cash and cash equivalents’ on the face of the balance sheet, less overdrafts, which are classified within current liabilities on the face of the balance sheet plus cash and cash equivalents included within assets held for sale on the face of the balance sheet.

(ii) Free Cash Flow comprises those items marked * and comprises cash generated from / (utilised by) continuing operations before special pension contributions, less net interest paid, less income tax paid and net capital expenditure. The directors consider that ‘Free Cash Flow’ provides additional useful information to shareholders in respect of cash generation and is consistent with how business performance is measured internally.

Dixons Retail plc Page 15 of 37

Financial Information

Consolidated Statement of Changes in Equity

Non- Share Share Other Retained Sub- controlling Total capital premium reserves earnings total interests equity £million £million £million £million £million £million £million At 1 May 2013 90.7 172.7 (520.9) 405.6 148.1 (0.8) 147.3

Loss for the period – – – (83.5) (83.5) – (83.5) Other comprehensive income and expense recognised directly in equity – – 8.0 (68.6) (60.6) (0.8) (61.4) Total comprehensive income and expense for the period – – 8.0 (152.1) (144.1) (0.8) (144.9)

Reduction in non-controlling interests – – – (2.7) (2.7) 2.2 (0.5) Ordinary shares issued 0.7 5.0 – – 5.7 – 5.7 Share based payments (including any related tax) – – – 2.6 2.6 – 2.6 At 31 October 2013 91.4 177.7 (512.9) 253.4 9.6 0.6 10.2

Non- Share Share Other Retained Sub- controlling Total capital premium reserves earnings total interests equity £million £million £million £million £million £million £million At 29 April 2012 90.3 169.5 (521.0) 652.6 391.4 12.6 404.0

Loss for the period – – – (102.8) (102.8) – (102.8) Other comprehensive income and expense recognised directly in equity – – 0.1 (15.8) (15.7) (6.6) (22.3) Total comprehensive income and expense for the period – – 0.1 (118.6) (118.5) (6.6) (125.1)

Reduction in non-controlling interests – – – (2.0) (2.0) (6.1) (8.1) Ordinary shares issued 0.1 0.6 – – 0.7 – 0.7 Share based payments (including any related tax) – – – 2.6 2.6 – 2.6 At 31 October 2012 90.4 170.1 (520.9) 534.6 274.2 (0.1) 274.1

Non- Share Share Other Retained Sub- controlling Total capital premium reserves earnings total interests equity £million £million £million £million £million £million £million At 29 April 2012 90.3 169.5 (521.0) 652.6 391.4 12.6 404.0

Loss for the period (re-presented) – – – (172.4) (172.4) – (172.4) Other comprehensive income and expense recognised directly in equity (re-presented) – – (1.9) (76.1) (78.0) (10.2) (88.2) Total comprehensive income and expense for the period – – (1.9) (248.5) (250.4) (10.2) (260.6)

Reduction in non-controlling interests – – – (2.0) (2.0) (6.1) (8.1) Non-controlling interests – increase in capital – – – – – 2.9 2.9 Ordinary shares issued 0.4 3.2 – – 3.6 – 3.6 Investment in own shares – – (0.3) – (0.3) – (0.3) Transfer – – 2.3 (2.3) – – – Share based payments (including any related tax) – – – 5.8 5.8 – 5.8 At 30 April 2013 90.7 172.7 (520.9) 405.6 148.1 (0.8) 147.3

At 31 October 2013, non-controlling interests (minority interests) comprise shareholdings in Dixons South-East Europe A.E.V.E. (Kotsovolos).

On 27 June 2013 the Group acquired 40% of Electro World lç ve Dış Ticaret A.Ş (Electroworld Turkey) for TL 2 (£1) in cash, bringing its stake in EW Turkey to 100%. The Group subsequently sold the business on 31 October 2013 as described further in note 8. On 7 August 2013 the Group acquired the remaining 0.8% of PIXmania S.A.S. (PIXmania) for €0.6 million (£0.5 million) in cash, bringing its stake in PIXmania to 100%. The Group has since announced the sale of PIXmania, although this has not yet completed. Further information is set out in note 8.

Dixons Retail plc Page 16 of 37

Financial Information

Notes to the Financial Information

1 Basis of preparation The interim financial information for the 6 months ended 31 October 2013 was approved by the directors on 17 December 2013. The interim financial information, which is a condensed set of financial statements, has been prepared in accordance with the Listing Rules of the Financial Services Authority and International Accounting Standard 34 ‘Interim Financial Reporting’ (IAS 34) as adopted by the European Union and has been prepared on the going concern basis as described further in the section on principal risks and uncertainties. Other than as set out below, the accounting policies adopted are those set out in the Group’s Annual Report and Accounts for the year ended 30 April 2013.

Historically, the Group has prepared its financial statements to the Saturday closest to its accounting reference date of 30 April, meaning that financial years have comprised 13 four week financial periods. This has resulted in the interim financial statements historically being drawn up for 24 weeks ended in mid October. Commencing 30 April 2013, the Group now draws up its accounts for years ending on 30 April comprising twelve calendar monthly periods and accordingly, the Group’s interim period now ends on 31 October. As a result, financial information for the 6 months ended 31 October 2012 has been presented for the first time as a comparative.

The Group has applied the amendment to IAS 19 ‘Employee Benefits’ for the first time in this interim statement. The amendment replaces interest cost and expected return on plan assets with a simple net interest amount which is calculated by applying the discount rate to the net defined benefit scheme liability. The Group has applied this amendment retrospectively and the results for the year ended 30 April 2013 and the 6 months ended 31 October 2012 have been restated to include the impact of this amendment.

The Group has also adopted the amendment to IAS 34 “Interim Financial Reporting” in respect of financial instruments for the first time in this interim statement. The amendment requires certain disclosures to be made in respect of IFRS 13 “Fair Value Remeasurement” which becomes effective for the first time for the year ending 30 April 2014.

Except for the impact of the amendments described above, new accounting standards, amendments to standards and IFRIC interpretations which became applicable during the period were either not relevant or had no impact on the Group’s net results or net assets.

The interim financial information is unaudited and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006, but has been reviewed by the auditors. The financial information for the year ended 30 April 2013 does not constitute the Company’s statutory accounts for that period but has been extracted from those accounts which have been filed with the Registrar of Companies. The auditor has reported on those accounts, their report was unqualified, did not draw attention to any matters by way of emphasis, and did not contain statements under Sections 498 (2) or (3) of the Companies Act 2006.

The Group’s income statement and segmental analysis identify separately underlying performance measures and non- underlying items. Underlying performance measures reflect an adjustment to total performance measures to exclude the impact of businesses exited / to be exited and other non-underlying items. Underlying performance measures comprise profits and losses incurred as part of the day-to-day ongoing retail activities of the Group and include profits and losses incurred on the disposal and closure of owned or leased properties that occur as part of the Group’s annual retail churn. The profits or losses incurred on disposal or closure of owned or leased properties as part of a one-off restructuring programme are excluded from underlying performance measures and are therefore included, among other items, within non-underlying items as described below. The directors consider ‘underlying’ performance measures to be a more accurate reflection of the ongoing trading performance of the Group and believe that these measures provide additional useful information for shareholders on the Group’s performance and are consistent with how business performance is measured internally.

Non-underlying items comprise trading results of businesses exited / to be exited, amortisation of acquired intangibles, net restructuring and business impairment charges and other one-off, non-recurring items, profits / losses on sale of businesses or investments, net pension interest costs, fair value remeasurements of financial instruments and, where applicable, discontinued operations. Businesses exited / to be exited are those which do not meet the definition of discontinued operations as stipulated by IFRS 5. A reconciliation of underlying profit and losses to total profits and losses is shown in note 2. Items excluded from underlying results can evolve from one financial year to the next depending on the nature of reorganisation or one-off type activities described above, however, there were no new exclusions in the 6 months ended 31 October 2013.

Underlying performance measures and non-underlying performance measures may not be directly comparable with other similarly titled measures or “adjusted” revenue or profit measures used by other companies.

Dixons Retail plc Page 17 of 37

Financial Information

Notes to the Financial Information (continued)

2 Segmental analysis The Group’s operating segments have been determined based on the information reported to the Board. This information is predominantly based on geographical areas which are either managed separately or have similar trading characteristics such that they can be aggregated together into one segment. Accounting policies for each operating segment are the same as those for the Group and are set out in the 2012/13 Annual Report and Accounts. The Group evaluates each operating segment based on underlying operating profits which excludes those items described in note 1.

On 5 September 2013 and 10 October 2013, the Group announced the sales of its Electroworld Turkey and Unieuro S.p.A. (Unieuro) operations which subsequently completed on 31 October 2013 and 29 November 2013, respectively. On 27 September 2013, the Group also announced the sale of its PIXmania operations, although this sale has not yet completed. All three businesses have been classified as discontinued operations and hence are now excluded from the reportable segments listed below with the balance sheets of both PIXmania and Unieuro being treated as assets held for sale as at 31 October 2013. Electroworld Turkey and Unieuro were previously reported within the Southern Europe segment (which is now renamed ‘Greece’ to reflect its sole constituent). Further information on these sale transactions is set out in notes 8 and 12. All segments are involved in the multi-channel sale of high technology consumer electronics, personal computers, domestic appliances, photographic equipment, communication products and related financial and after-sales services. The principal categories of customer are retail, business to business (B2B) and online. The Group’s reportable segments have been identified as follows:  UK & Ireland comprises electrical and computing retail chains as well as in-store B2B activities. The division is engaged predominantly in multi-channel retail sales, associated peripherals and services and related financial and after sales services. The division also includes operations in airports across Europe (the majority of which are in the UK), all of which are managed from the UK.  Northern Europe operates in Norway, Sweden, Finland, Denmark, the Czech Republic, Slovakia, Iceland, Greenland and the Faroe Islands. The division engages in multi-channel retail sales and provides related product support services to its customers. It also engages in B2B sales of computer hardware, software and services. Across the region, the division operates a successful franchise business, typically in smaller markets.  Greece comprises retail sales (including multi-channel sales) and provides related product support services to its customers. In addition, it engages in B2B sales of computer hardware, software and services and also has franchise operations. Any residual income statement activity in respect of the exited businesses of PC City Spain (which was closed in June 2011) and Equanet (which was sold in March 2013) is excluded from underlying results and accounted for at centre. Such activities were previously included (as non-underlying items) as part of the respective divisions of Southern Europe (now renamed ‘Greece’) and UK & Ireland and with comparative information being restated accordingly. Central assets and liabilities predominantly comprise intersegment balances, cash and cash equivalents, borrowings, net retirement benefit obligations, derivative financial instruments tax assets, tax liabilities and items relating to the exited businesses described above. Businesses exited: in respect of PC City Spain because of the closure rather than disposal of these operations, they not meet the definition of discontinued operations as stipulated by IFRS 5. Equanet was sold rather than closed, however, because it did not form a major line of business under the definitions of IFRS 5, it also did not meet the definitions of discontinued operations.

Dixons Retail plc Page 18 of 37

Financial Information

Notes to the Financial Information (continued)

2 Segmental analysis continued

(a) Income Statement

6 months ended 31 October 2013 External Intersegmental Underlying Total revenue revenue Revenue profit / (loss) profit / (loss) £million £million £million £million £million UK & Ireland 1,856.4 28.1 1,884.5 31.4 33.0 Northern Europe 1,435.4 1.9 1,437.3 45.5 45.5 Greece 139.6 – 139.6 (5.8) (6.1) Eliminations – (30.0) (30.0) – – Results before central costs and property losses 3,431.4 – 3,431.4 71.1 72.4 Central costs (7.5) (7.5) Property losses (15.5) (15.5) Operating profit 48.1 49.4 Finance income 2.0 2.1 Finance costs (19.9) (28.8) Profit before tax for the period 30.2 22.7

Reconciliation of underlying profit to total profit 6 months ended 31 October 2013 Amortis- Underlying ation Non- Total profit / of acquired Other operating profit / (loss) intangibles items items (loss) £million £million £million £million £million UK & Ireland 31.4 – 1.6 – 33.0 Northern Europe 45.5 – – – 45.5 Greece (5.8) (0.3) – – (6.1) Operating profit before central costs and property losses 71.1 (0.3) 1.6 – 72.4 Central costs (7.5) – – – (7.5) Property losses (15.5) – – – (15.5) Operating profit 48.1 (0.3) 1.6 – 49.4 Finance income 2.0 – – 0.1 2.1 Finance costs (19.9) – – (8.9) (28.8) Profit before tax for the period 30.2 (0.3) 1.6 (8.8) 22.7

Dixons Retail plc Page 19 of 37

Financial Information

Notes to the Financial Information (continued)

2 Segmental analysis continued

(a) Income Statement continued

6 months ended 31 October 2012 Underlying external Intersegmental Underlying Underlying Total revenue revenue revenue profit / (loss) profit / (loss) £million £million £million £million £million UK & Ireland 1,732.8 21.9 1,754.7 6.9 6.7 Northern Europe 1,324.9 2.7 1,327.6 48.4 48.4 Greece 141.2 – 141.2 (4.1) (4.4) Eliminations – (24.6) (24.6) – – 3,198.9 – 3,198.9 51.2 50.7 Share of post tax result of associates 0.1 0.1 Operating profit before central costs and property losses 51.3 50.8 Central costs (7.6) (7.8) Property losses (12.1) (12.1) Operating profit 31.6 30.9 Finance income 6.2 8.9 Finance costs (23.8) (39.2) Profit before tax for the period 14.0 0.6

Total external revenue for the Group of £3,246.2 million includes £47.3 million relating to businesses exited.

Reconciliation of underlying profit to total profit 6 months ended 31 October 2012 Amortis- Net Underlying ation restructuri Non- Total profit / Businesses of acquired ng operating profit / (loss) exited intangibles charges items (loss) £million £million £million £million £million £million UK & Ireland 6.9 – (0.2) – – 6.7 Northern Europe 48.4 – – – – 48.4 Greece (4.1) – (0.3) – – (4.4) 51.2 – (0.5) – – 50.7 Share of post tax result of associates 0.1 – – – – 0.1 Operating profit before central costs and property losses 51.3 – (0.5) – – 50.8 Central costs (7.6) 0.2 – (0.4) – (7.8) Property losses (12.1) – – – – (12.1) Operating profit 31.6 0.2 (0.5) (0.4) – 30.9 Finance income 6.2 0.1 – – 2.6 8.9 Finance costs (23.8) – – – (15.4) (39.2) Profit before tax for the period 14.0 0.3 (0.5) (0.4) (12.8) 0.6

Share of post tax result of associates relates to Northern Europe.

Dixons Retail plc Page 20 of 37

Financial Information

Notes to the Financial Information (continued)

2 Segmental analysis continued

(a) Income Statement continued Year ended 30 April 2013 Restated Underlying external Intersegmental Underlying Underlying Total revenue revenue revenue profit / (loss) profit / (loss) £million £million £million £million £million UK & Ireland 4,014.5 47.3 4,061.8 113.3 84.4 Northern Europe 2,876.3 5.4 2,881.7 120.5 118.0 Greece 278.8 – 278.8 (11.0) (13.1) Eliminations – (52.7) (52.7) – – Results before central costs and property losses 7,169.6 – 7,169.6 222.8 189.3 Central costs (16.9) (19.2) Property losses (24.4) (24.4) Operating profit 181.5 145.7 Loss on sale of business – (9.6) Finance income 7.2 10.5 Finance costs (42.6) (64.9) Profit before tax for the period 146.1 81.7

Total external revenue for the Group of £7,252.2 million includes £82.6 million relating to the businesses exited.

Reconciliation of underlying profit to total profit Year ended 30 April 2013 Restated Under- Amortisa- lying tion of Net Business Total profit / Businesses acquired restructuring iImpairment Non-operating profit / (loss) exited intangibles charges charges Other items items (loss) £million £million £million £million £million £million £million £million UK & Ireland 113.3 – (0.3) (22.9) (6.6) 0.9 – 84.4 Northern Europe 120.5 – – – (2.5) – – 118.0 Greece (11.0) – (0.7) – – (1.4) – (13.1) Operating profit before central costs and property losses 222.8 – (1.0) (22.9) (9.1) (0.5) – 189.3 Central costs (16.9) (0.4) – (1.9) – – – (19.2) Property losses (24.4) – – – – – – (24.4) Operating profit 181.5 (0.4) (1.0) (24.8) (9.1) (0.5) – 145.7 Loss on sale of business – – – – – – (9.6) (9.6) Finance income 7.2 0.3 – – – – 3.0 10.5 Finance costs (42.6) – – – – – (22.3) (64.9) Profit before tax for the period 146.1 (0.1) (1.0) (24.8) (9.1) (0.5) (28.9) 81.7

Share of post tax result of associates relates to Northern Europe.

Dixons Retail plc Page 21 of 37

Financial Information

Notes to the Financial Information (continued)

2 Segmental analysis continued (b) Balance sheet 6 months ended 31 October 2013 Segment Investment in Total segment Segment Net assets / assets associates assets liabilities (liabilities) £million £million £million £million £million UK & Ireland 2,177.8 – 2,177.8 (1,407.4) 770.4 Northern Europe 1,225.7 0.6 1,226.3 (591.6) 634.7 Greece 162.3 – 162.3 (143.6) 18.7 Central 779.1 – 779.1 (2,026.3) (1,247.2) Continuing operations 4,344.9 0.6 4,345.5 (4,168.9) 176.6 Discontinued operations 226.0 – 226.0 (392.4) (166.4) Eliminations (1,498.3) – (1,498.3) 1,498.3 – 3,072.6 0.6 3,073.2 (3,063.0) 10.2

6 months ended 31 October 2012 Segment Investment in Total segment Segment Net assets / assets associates assets liabilities (liabilities) £million £million £million £million £million UK & Ireland 2,060.3 – 2,060.3 (1,311.4) 748.9 Northern Europe 1,201.0 3.6 1,204.6 (485.1) 719.5 Greece 180.5 – 180.5 (134.1) 46.4 Central 748.7 – 748.7 (1,968.3) (1,219.6) Continuing operations 4,190.5 3.6 4,194.1 (3,898.9) 295.2 Discontinued operations 379.7 – 379.7 (400.8) (21.1) Eliminations (1,161.0) – (1,161.0) 1,161.0 – 3,409.2 3.6 3,412.8 (3,138.7) 274.1

Year ended 30 April 2013 Re-presented Segment Investment in Total segment Segment Net assets / assets associates assets liabilities (liabilities) £million £million £million £million £million UK & Ireland 1,927.7 – 1,927.7 (1,268.9) 658.8 Northern Europe 1,199.7 0.5 1,200.2 (518.9) 681.3 Greece 140.2 – 140.2 (128.5) 11.7 Central 833.3 – 833.3 (1,948.4) (1,115.1) Continuing operations 4,100.9 0.5 4,101.4 (3,864.7) 236.7 Discontinued operations 309.9 – 309.9 (399.3) (89.4) Eliminations (1,406.6) – (1,406.6) 1,406.6 – 3,004.2 0.5 3,004.7 (2,857.4) 147.3

(c) Seasonality The Group’s business is highly seasonal, with a substantial proportion of its revenue and operating profit generated during its third quarter, which includes the Christmas and New Year season. In addition, in Greece, hot summer periods encourage sales of air conditioning units and, accordingly, this forms a second peak of trading.

Dixons Retail plc Page 22 of 37

Financial Information

Notes to the Financial Information (continued)

3 Non-underlying items 6 months ended 6 months ended Year ended 31 October 2013 31 October 2012 30 April 2013 Restated Note £million £million £million

Included in operating profit:

Businesses exited (i) – 0.2 (0.4)

Amortisation of acquired intangibles (0.3) (0.5) (1.0)

Net restructuring charges (ii) – (0.4) (24.8)

Business impairment charges (iii) – – (9.1)

Other items (iv) 1.6 – (0.5)

1.3 (0.7) (35.8)

Loss on sale of business (v) – – (9.6)

Included in net finance costs:

Businesses exited (i) 0.1 0.1 0.3

Net non-cash finance costs on defined benefit pension schemes (vi) (8.5) (6.6) (13.1)

Net fair value remeasurements of financial instruments (vii) – (1.9) (1.9)

2012 Bonds and 2015 Notes redemption costs and fees (viii) – (4.3) (4.3)

Finance lease interest on onerous lease (ix) (0.4) – – (8.8) (12.7) (19.0)

Total impact on profit / (loss) before tax (7.5) (13.4) (64.4)

Tax on other non-underlying items 1.6 3.6 10.3 Total impact on profit / (loss) after tax (5.9) (9.8) (54.1)

(i) Businesses exited: comprises the trading results of exited businesses where they do not meet the criteria under IFRS 5 for separate disclosure as discontinued operations and comprise:  Equanet, which was sold in March 2013 and which constituted the majority of the B2B activities of the UK & Ireland division; and  PC City Spain which was closed in June 2011 whereby these activities comprise the unwinding of residual deferred income and related costs. Discontinued operations, which comprise the results of Electroworld Turkey, Unieuro and PIXmania, are shown separately after post tax results in accordance with IFRS 5 and are described further in note 8.

(ii) Net restructuring charges – strategic reorganisation:

6 months ended 6 months ended Year ended 31 October 2013 31 October 2012 30 April 2013 Re-presented £million £million £million Asset impairments – – (5.6) Property charges – – (14.3) Other charges – (0.4) (4.9) – (0.4) (24.8)

Year ended 30 April 2013: Charges related predominantly to the reorganisation of the remaining retained UK B2B operations following the sale of Equanet for which the charges were £22.9 million. The charges related mainly to an onerous operating lease which was retained in respect of these sold operations together with related fixed asset write offs.

Dixons Retail plc Page 23 of 37

Financial Information

Notes to the Financial Information (continued)

3 Non-underlying items (continued) (iii) Business impairment charges: 6 months ended 6 months ended Year ended 31 October 2013 31 October 2012 30 April 2013 Re-presented £million £million £million Goodwill – – (6.6) Other assets – – (2.5) – – (9.1)

Year ended 30 April 2013: This related to the impairment of goodwill of a small UK B2B operation following the reorganisation and significant reduction in the UK & Ireland’s B2B operations following the sale of Equanet as well as the full write down of the investment in an associate following continued declining results.

(iv) Other items comprise the following: 6 months ended 6 months ended Year ended 31 October 2013 31 October 2012 30 April 2013 Re-presented £million £million £million UK Riot related income 1.6 – 0.9 Exceptional charges – – (1.4) 1.6 – (0.5)

UK Riot related income comprises insurance recoveries in respect of charges incurred in 2011/12.

(v) Loss on sale of business: Year ended 30 April 2013 On 28 March 2013, the Group completed the disposal of its Equanet B2B operations (Equanet) to Kelway (UK) Limited for consideration of £4.2 million. The loss on disposal is analysed as follows:

£million Net assets disposed: Goodwill 10.7 Other assets 1.7 12.4 Loss on disposal (9.6) Consideration and costs 2.8

Consideration 4.2 Disposal fees and exit costs (1.4) Consideration and costs 2.8

(vi) Net non-cash financing costs on defined benefit pension schemes: Under IAS 19 ‘Employee Benefits’, the net interest charge on defined benefit pension schemes is calculated by applying the corporate bond yield rates applicable on the last day of the previous financial year and to the net defined benefit liability. Corporate bond yield rates vary over time which in turn creates volatility in the income statement and balance sheet and results in a non-cash remeasurement cost which can be volatile due to corporate bond yield rates prevailing on a particular day and is also unrepresentative of the actual investment gains or losses made or the liabilities paid and payable. Consistent with a number of other companies, the accounting effects of these non-cash revaluations of net defined benefit pension liabilities have been excluded from underlying earnings.

Dixons Retail plc Page 24 of 37

Financial Information

Notes to the Financial Information (continued)

3 Non-underlying items (continued) (vii) Net fair value remeasurement gains and losses on revaluation of financial instruments: Items excluded from underlying finance income and expense represent the gains and losses arising from the revaluation of derivative financial instruments under methodologies stipulated by IAS 39 compared with those on an accruals basis (the basis upon which all other items in the financial statements are prepared). Such a treatment is a form of revaluation gain or loss created by an assumption that the derivatives will be settled before their maturity.

Such gains and losses are unrealised and in the directors’ view also conflict with both the commercial reasons for entering into such arrangements as well as Group Treasury policy whereby early settlement in the majority of cases would amount to speculative use of derivatives.

(viii) Year ended 30 April 2013 and 6 months ended 31 October 2012: On 20 September 2012, the Group repurchased £15.6 million in nominal amount of its 6.125% Guaranteed Bonds due November 2012 (the 2012 Bonds) as well as £49.4 million in nominal amount of its 8.75% Guaranteed Notes due August 2015 (the 2015 Notes). The latter repurchase was funded by part of a new issue of £150 million 8.75% Guaranteed Notes due September 2017 (the 2017 Notes) and for which the proceeds were received on the same date. The issue of the 2017 Notes resulted in the Group’s revolving facility agreement being reduced from £300 million down to £225 million as part of the terms of this facility whereby if new debt financing was raised, a reduction in the amount of this facility would ensue.

As a result of the repurchases of the 2012 Bonds and 2015 Notes on 20 September 2012, charges were incurred relating to the acceleration of the amortisation of fees from the 2012 Bonds and the 2015 Notes which would otherwise have been charged evenly over the period to the 2012 Bonds’ maturity in November 2012 and the 2015 Notes’ maturity in August 2015, together with a redemption premium.

(ix) Other finance charges relates to onerous finance lease interest costs in respect of the reorganisation of the UK B2B operations which occurred in 2012/13 as described in (ii).

Dixons Retail plc Page 25 of 37

Financial Information

Notes to the Financial Information (continued)

4 Net finance costs 6 months ended 6 months ended Year ended 31 October 2013 31 October 2012 30 April 2013 Restated £million £million £million Bank and other interest receivable: Non-underlying: businesses exited * 0.1 0.1 0.3 Underlying 2.0 6.2 7.2 Fair value remeasurement gains on financial instruments * – 2.6 3.0 Finance income 2.1 8.9 10.5

6.125% Guaranteed Bonds 2012 interest and related charges – (4.6) (4.9) 8.75% Guaranteed Notes 2015 interest and related charges (4.8) (6.6) (11.4) 8.75% Guaranteed Notes 2017 interest and related charges (7.0) (1.6) (8.5) Bank loans, overdrafts and other finance charges (5.6) (8.0) (11.8) Finance lease interest payable: Non-underlying * (0.4) – – Underlying (2.5) (3.0) (6.0) Net interest expense on defined benefit obligation * (8.5) (6.6) (13.1) Fair value remeasurement losses on financial instruments * – (4.5) (4.9) 2012 Bonds and 2015 Notes redemption costs and fees * – (4.3) (4.3) Finance costs (28.8) (39.2) (64.9)

Total net finance costs – continuing operations (26.7) (30.3) (54.4)

Underlying total net finance costs – continuing operations (17.9) (17.6) (35.4)

Underlying total net finance costs excludes items marked *. See note 3 for a description of such items.

Underlying bank and other interest receivable includes £nil relating to exchange gains (6 months ended 31 October 2012 £2.7 million and year ended 30 April 2013 £nil), which is a natural offset for losses arising from financial instruments not in a formal designated hedging relationship under the rules stipulated by IAS 39.

Underlying bank loans, overdrafts and other interest payable includes £15.1 million relating to exchange losses (6 months ended 31 October 2012 £nil and year ended 30 April 2013 £8.0 million), which is a natural offset to gains arising from financial instruments not in a formal designated hedging relationship under the rules stipulated by IAS 39.

Dixons Retail plc Page 26 of 37

Financial Information

Notes to the Financial Information (continued)

5 Tax 6 months ended 6 months ended Year ended 31 October 2013 31 October 2012 30 April 2013 Restated £million £million £million Current tax UK corporation tax 0.5 – 0.3 Overseas taxation 13.2 13.5 31.7 Adjustment in respect of earlier periods: Overseas taxation – – (0.9) 13.7 13.5 31.1 Deferred tax Current period - underlying (0.9) (7.5) 15.0 - non-underlying: other * (1.6) (3.6) (10.3) Adjustment in respect of earlier periods: UK corporation tax – – 6.5 Overseas taxation – – 0.2 (2.5) (11.1) 11.4

Income tax expense – continuing operations 11.2 2.4 42.5

Underlying income tax expense – continuing operations 12.8 6.0 52.8

Underlying income tax expense excludes those items marked *. Further information on these items is shown in note 3. The taxation charge on underlying results is based on the estimated effective rate of taxation of 35% on underlying earnings for the 2013/14 full financial period (Year ended 30 April 2013 the equivalent effective rate of taxation was 36%). The UK corporation tax rate for the 6 months ended 31 October 2013 was 23% (6 months ended 31 October 2012 24%, year ended 30 April 2013 23.92% (based on a tax rate of 24% for the period up to 31 March 2013 and 23% thereafter)). Tax relating to discontinued operations is included the figures set out in note 8.

Dixons Retail plc Page 27 of 37

Financial Information

Notes to the Financial Information (continued)

6 Earnings per share 6 months ended 6 months ended Year ended 31 October 2013 31 October 2012 30 April 2013 Restated £million £million £million Basic and diluted (loss) / earnings Total (continuing and discontinued operations) (82.7) (96.7) (162.5) Discontinued operations 94.2 95.0 201.8 Continuing operations 11.5 (1.7) 39.3

Non-underlying items 7.5 13.4 64.4 Attributable to non-controlling interests – – – Attributable to equity shareholders of the parent company 7.5 13.4 64.4

Tax on adjustments (1.6) (3.6) (10.3) Attributable to non-controlling interests – – – Tax on adjustments attributable to equity shareholders of the parent company (1.6) (3.6) (10.3)

Total adjustments (net of taxation) 5.9 9.8 54.1

Underlying basic and diluted earnings 17.4 8.1 93.4

Million Million Million Weighted average number of shares for: Basic and underlying basic (loss) / earnings 3,637.3 3,609.9 3,616.5 Diluted loss – total (continuing and discontinued operations) † 3,637.3 3,609.9 3,616.5 Underlying diluted earnings – continuing operations † 3,771.3 3,609.9 3,616.5 Underlying diluted earnings † 3,771.3 3,634.6 3,696.4 Potentially dilutive shares under employee share option and ownership schemes † 134.0 24.7 79.9

Pence Pence Pence Basic (loss) / earnings per share Total (continuing and discontinued operations) (2.3) (2.7) (4.5) Adjustment in respect of discontinued operations 2.6 2.7 5.6 Continuing operations 0.3 – 1.1 Adjustments (net of taxation) 0.2 0.2 1.5 Underlying basic earnings per share 0.5 0.2 2.6

Diluted (loss) / earnings per share Total (continuing and discontinued operations) (2.3) (2.7) (4.5) Adjustment in respect of discontinued operations 2.6 2.7 5.6 Continuing operations 0.3 – 1.1 Adjustments (net of taxation) 0.2 0.2 1.4 Underlying diluted earnings per share 0.5 0.2 2.5

† In accordance with IAS 33, the weighted average number of shares for the calculation of diluted (loss) / earnings per share does not include potentially dilutive shares if they would decrease the loss per share.

Basic and diluted (loss) / earnings per share is based on the (loss) / profit for the period attributable to equity shareholders. Underlying (loss) / earnings per share are presented in order to show the underlying performance of the Group. Adjustments used to determine underlying earnings are described further in note 3.

Dixons Retail plc Page 28 of 37

Financial Information

Notes to the Financial Information (continued)

7 Notes to the cash flow statement (a) Reconciliation of operating loss to net cash inflow from operating activities 6 months ended 6 months ended Year ended 31 October 2013 31 October 2012 30 April 2013 Re-presented £million £million £million Operating loss (43.2) (53.9) (50.9) Operating loss – discontinued operations 92.6 84.8 196.6 Operating profit - continuing operations 49.4 30.9 145.7 Amortisation of acquired intangibles 0.3 0.5 1.0 Amortisation of other intangibles 7.5 6.5 13.6 Depreciation 52.9 50.8 102.7 Share based payment charge 3.6 2.1 3.6 Share of post tax results of associates – (0.1) – Underlying property loss 15.5 12.1 24.4 Increase in non-underlying provisions – 0.4 19.2 Non-underlying impairments and other non-cash items (1.6) – 14.7 Utilisation of non-underlying provisions (5.3) (2.4) (5.8) Operating cash flows before movements in working capital 122.3 100.8 319.1

Movements in working capital: Increase in inventories (233.5) (250.0) (25.8) (Increase) / decrease in trade and other receivables (23.7) (13.8) 11.8 Increase in trade and other payables 262.5 330.9 97.8 5.3 67.1 83.8

Cash generated from operations – continuing operations 127.6 167.9 402.9

Dixons Retail plc Page 29 of 37

Financial Information

Notes to the Financial Information (continued)

7 Notes to the cash flow statement (continued) (b) Analysis of net funds / (debt) Other non-cash Currency 1 May 2013 Cash flow movements translation 31 October 2013 £million £million £million £million £million Cash and cash equivalents (i) 405.3 4.3 – (11.0) 398.6 Bank overdrafts (17.7) 14.2 – – (3.5) 387.6 18.5 – (11.0) 395.1

Short term investments 2.4 (0.1) – – 2.3

Borrowings due within one year (ii) (4.5) 4.5 – – – Borrowings due after more than one year (ii) (245.4) – (0.8) – (246.2) Obligations under finance leases (ii) (98.0) 2.4 – (0.2) (95.8) (347.9) 6.9 (0.8) (0.2) (342.0)

Net funds 42.1 25.3 (0.8) (11.2) 55.4

Other non-cash Currency 29 April 2012 Cash flow movements translation 31 October 2012 £million £million £million £million £million Cash and cash equivalents (i) 316.8 163.6 – 1.1 481.5 Bank overdrafts (15.8) 2.9 – 0.2 (12.7) 301.0 166.5 – 1.3 468.8

Short term investments 7.3 (5.2) 0.1 – 2.2

Borrowings due within one year (ii) (162.5) 12.7 2.3 – (147.5) Borrowings due after more than one year (ii) (147.8) (97.1) 0.2 – (244.7) Obligations under finance leases (ii) (102.0) 2.4 (1.0) (0.1) (100.7) (412.3) (82.0) 1.5 (0.1) (492.9)

Net debt (104.0) 79.3 1.6 1.2 (21.9)

Other non-cash Currency 29 April 2012 Cash flow movements translation 30 April 2013 £million £million £million £million £million Cash and cash equivalents (i) 316.8 78.7 – 9.8 405.3 Bank overdrafts (15.8) (1.4) – (0.5) (17.7) 301.0 77.3 – 9.3 387.6

Short term investments 7.3 (5.3) 0.4 – 2.4

Borrowings due within one year (ii) (162.5) 155.5 2.5 – (4.5) Borrowings due after more than one year (ii) (147.8) (97.1) (0.5) – (245.4) Obligations under finance leases (ii) (102.0) 4.7 (0.9) 0.2 (98.0) (412.3) 63.1 1.1 0.2 (347.9)

Net (debt) / funds (104.0) 135.1 1.5 9.5 42.1

(i) Cash and cash equivalents are presented as a single class of assets on the face of the consolidated balance sheet. For the purpose of the consolidated cash flow statement, cash and cash equivalents comprise those amounts presented as such on the consolidated balance sheet as cash and cash equivalents, less bank overdrafts (which are disclosed separately on the consolidated balance sheet), plus cash and cash equivalents which are included within assets held for sale.

(ii) Borrowings and obligations under finance leases include amounts which are included within liabilities directly associated with assets held for sale. Cash flows relating to borrowings and obligations under finance leases include amounts included within cash flows from discontinued operations.

Restricted funds, which predominantly comprise funds held under trust to fund potential customer support agreement liabilities, were £100.3 million (31 October 2012 £104.7 million, 30 April 2013 £110.2 million). Net debt excluding restricted funds totalled £44.9 million (31 October 2012 £126.6 million, 30 April 2013 £68.1 million).

Dixons Retail plc Page 30 of 37

Financial Information

Notes to the Financial Information (continued)

8 Assets held for sale and discontinued operations On 5 September 2013, the Group announced the sale of its Electroworld Turkey operations to Bimeks, one of the leading specialist electrical retailers in Turkey whereby the sale subsequently completed on 31 October 2013.

On 27 September 2013 and 10 October 2013, the Group announced the sales of its PIXmania and Unieuro operations, respectively and accordingly has classified their assets and liabilities as held for sale as at 31 October 2013 owing to the sales being highly probable under the definitions stipulated in IFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’.

The sale of Unieuro completed on 29 November 2013 as described further in note 12.

In respect of PIXmania, the agreement is to sell PIXmania S.A.S. to mutares A.G. (mutares), a German listed industrial holding company. As part of its purchase, mutares has developed a robust plan to build on PIXmania’s pure play e-commerce operations as well as to further develop its market leading software platform. In order to support this plan, and to provide ongoing funding for PIXmania, the Group will provide approximately £59 million (€69 million) of ring-fenced capital. Completion of this transaction is expected to take place at the end of December 2013.

All three businesses have been classified as discontinued operations with the prior periods having been re-presented on a consistent basis.

In respect of the year ended 30 April 2013, as previously reported, on 22 April 2013 and 7 May 2013, the Group announced that it had agreed to dispose of its Webhallen and PLS operations in Sweden and France, respectively and accordingly classified their assets and liabilities as held for sale owing to the sales being highly probable under the definitions stipulated in IFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’. The sales completed on 30 August 2013 and 7 May 2013, respectively and as the results formed part of PIXmania, are now shown within discontinued operations.

(a) Loss after tax – discontinued operations 6 months ended 6 months ended Year ended 31 October 2013 31 October 2012 30 April 2013 Re-presented £million £million £million Loss after tax from discontinued operations (19.4) (101.0) (211.6) Net loss on disposals (75.6) – – Loss after tax – discontinued operations (95.0) (101.0) (211.6)

The loss after tax for discontinued operations comprises the activities of Electroworld Turkey, Unieuro and PIXmania. The net loss on disposals is comprised as follows: 6 months ended 31 October 2013 £million Electroworld Turkey (12.2) Unieuro (22.3) PIXmania (41.5) Electroworld Hungary 0.4 (75.6)

The loss on disposal in respect of Unieuro relates to the impairment of assets held for sale down to their anticipated net realisable value on completion, which occurred on 29 November 2013, after taking into account estimated post closing adjustments. The loss on disposal in respect of PIXmania is caused by the ring-fenced capital to be provided as set out above, however, as required by IFRS 5, any non-current assets have been impaired first, before consideration has been given to accrue for costs to sell. Electroworld Hungary was sold in May 2009 and the above amount represents a release of surplus accrual following final settlements of warranty claims.

In calculating the losses on disposal, consideration has been given to any potential liabilities arising from warranties given to the purchasers with any provisions having been made as deemed appropriate.

Dixons Retail plc Page 31 of 37

Financial Information

Notes to the Financial Information (continued)

8 Assets held for sale and discontinued operations (continued) The loss on disposal in respect of Electroworld Turkey is analysed as follows:

£million Intangible assets and Property, plant & equipment 8.9 Inventories 19.5 Other assets 5.2 Cash and cash equivalents 0.8 Liabilities (24.2) Net assets disposed 10.2 Loss on disposal (12.2) (2.0)

Consideration 0.4 Disposal fees and exit costs (0.9) Cumulative foreign exchange differences transferred from equity (1.5) (2.0)

(b) Assets held for sale and liabilities directly associated with assets held for sale 31 October 2013 31 October 2012 30 April 2013 Unieuro PIXmania Total Total Total £million £million £million £million £million Goodwill 5.3 – 5.3 – – Intangible assets and Property, plant & equipment 23.1 – 23.1 – 1.8 Inventories 90.7 24.4 115.1 – 10.2 Other assets 29.5 22.1 51.6 – 3.1 Total assets held for sale 148.6 46.5 195.1 – 15.1

Current liabilities (170.3) (107.7) (278.0) – (7.3) Non-current liabilities (12.2) (0.5) (12.7) – (0.6) Liabilities directly associated with assets held for sale (182.5) (108.2) (290.7) – (7.9)

Net (liabilities) /assets held for sale (33.9) (61.7) (95.6) – 7.2 Net assets held for sale as at 30 April 2013 comprised Webhallen and PLS as described above.

(c) Cash flows from discontinued operations

6 months ended 6 months ended Year ended 31 October 2013 31 October 2012 30 April 2013 Re-presented £million £million £million Operating activities (35.9) 7.5 (30.4) Investing activities 8.5 (14.4) (22.4) Financing activities (7.7) 0.4 1.4 (35.1) (6.5) (51.4)

Dixons Retail plc Page 32 of 37

Financial Information

Notes to the Financial Information (continued)

9 Retirement benefit obligations The Group operates a number of defined contribution and defined benefit pension schemes. The Group’s principal pension scheme operates in the UK and includes a funded defined benefit section whose assets are held in a separate trustee administered fund. The defined benefit section was closed to future accrual on 30 April 2010. The net obligation of the defined benefit section of this scheme, calculated in accordance with IAS 19, is analysed as follows:

31 October 2013 31 October 2012 30 April 2013 £million £million £million Present value of defined benefit obligations (1,243.1) (1,019.3) (1,225.2) Fair value of plan assets 810.5 729.5 818.8 Net obligation (432.6) (289.8) (406.4)

The value of obligations is particularly sensitive to the discount rate applied to liabilities at the assessment date as well as mortality rates. The value of the plan assets is sensitive to market conditions, particularly equity values. The assumptions used in the valuation of obligations are listed below:

Rates per annum 31 October 2013 31 October 2012 30 April 2013 Discount rate 4.35% 4.70% 4.30% Rate of increase in pensions in payment / deferred - pre April 2006 3.25% 2.65% 3.20% pensions - post April 2006 2.10% 2.10% 2.10% Inflation 3.35% 2.75% 3.30% Mortality rates are based on historical experience and standard actuarial tables and include an allowance for future improvements in longevity.

10 Contingent liabilities 31 October 2013 31 October 2012 30 April 2013 £million £million £million Contingent liabilities 3.9 5.6 3.5

In addition to the figures shown in the table above, contingent liabilities also exist in respect of lease covenants relating to premises assigned to third parties.

11 Financial instruments The Group holds the following financial instruments at fair value:

6 months ended 31 October 2013 Short term Trade and other Trade and other investments receivables - current payables - current Total £million £million £million £million Available for sale assets 2.3 – – 2.3 Derivatives held to manage the currency exposure of: Financial assets and liabilities – 2.5 (2.3) 0.2 Future transactions occurring within one year – 8.5 (3.2) 5.3 2.3 11.0 (5.5) 7.8

The fair value of the above financial instruments is predominantly determined using observable market data such as interest rates and foreign exchange rates and, for available for sale assets, observable recently traded prices for identical or similar assets. As such, all the financial instruments held by the Group at fair value are considered to have values determined by ‘Level 2’ inputs as defined by the fair value hierarchy of IFRS 13 ‘Fair Value Measurement’.

For all other financial assets and liabilities, the carrying amount of the assets and liabilities approximates their fair value.

12 Post balance sheet events On 29 November 2013, the Group completed the disposal of Unieuro whereby the Group together with the shareholders of SGM Distribuzione s.r.l. (SGM) (which trades as Marco Polo in Italy (Marco Polo)) formed a new entity, Italian Electronics Holdings s.r.l. (IEH), that now indirectly owns both Unieuro and Marco Polo. Rhône Capital was the controlling shareholder of Marco Polo and is now the controlling shareholder of IEH. Under the terms of the agreement, first announced in October 2013, the Group left Unieuro with €25 million of cash and has invested €7.5 million in the form of a loan note. The Group now owns a 15% share in IEH with the shareholders of SGM holding the remaining 85%.

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Responsibility Statement

The directors confirm that to the best of their knowledge:  the interim financial information has been prepared in accordance with IAS 34 as adopted by the European Union;  the financial highlights, review of business performance and interim financial information include a fair review of the information required by DTR 4.2.7R (indication of important events during the first 6 months and description of principal risks and uncertainties for the remaining 6 months of the year); and  the financial highlights and review of business performance includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein). At the date of this statement, the directors are those listed in the Group’s 2012/13 Annual Report and Accounts.

By order of the Board

Sebastian James Humphrey Singer Group Chief Executive Group Finance Director 17 December 2013 17 December 2013

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Risks to Achieving the Group’s Objectives

Risks to achieving the Group's objectives for the remainder of the financial year together with estimates, judgements and critical accounting policies remain those set out in the 2012/13 Annual Report and Accounts on pages 12 to 15 and in note 1.19 to the financial statements, respectively. In addition, the outlook section of this interim statement provides a commentary by the Group Chief Executive concerning the remainder of the financial year. A summary of the principal risks and uncertainties is as follows: 1. Economic environment Ongoing uncertainty in the European and global economies, with increased austerity measures to reduce deficits and borrowing. This includes:  The UK economic recovery is delayed with increased volatility through 2013/14 and beyond  Greece exits from the euro, leading to a step change deterioration of the Greek economy and challenging the sustainability of our business  Instability of the Greek government with ongoing austerity measures resulting in prolonged weakness in this economy 2. Changing technology & consumer preferences Constantly evolving technology is driving changes in consumer behaviour. This includes:  We do not respond quickly enough to capitalise on changes in consumer demand for technology  We fail to flex our offering to respond to changes in the nature of revenue streams, e.g. the move to digital downloads  We fail to respond to changes in consumer preferences as a result of converging technologies, e.g. the role of the mobile ecosystem 3. Competition The competitive landscape remains challenging with an array of competitor formats. This includes the risk that we fail to respond with a business model that enables us to compete effectively against a broad range of competitors, including from specialist electrical / computing retailers, generalist merchandisers and pure-players 4. Employee effectiveness We believe our colleagues are a key differentiator in delivering what our customers want. The risks are that:  We fail to attract, develop and retain the quality and depth of necessary leadership and management talent for our business  We fail to develop our staff to deliver the service excellence to support our customer promise 5. Finance & treasury Difficult economic circumstances increase our focus on maintaining and improving our financial position with risks that:  We fail to maintain the support of our credit insurers  We fail to maintain and develop processes and controls to support changes in our business activities 6. Technology infrastructure change Complex projects planned for systems changes over the medium term with increasing dependence on online systems result in the risk that:  A key system becomes unavailable for a period of time  Our IT systems do not support changing business needs  The planned IT change programme does not deliver the necessary benefits due to programme failure or not having the right programme to the required timescales 7. Legislative, contractual, reputational and regulatory risks Multi-national business with a complex legislative and regulatory environment, e.g. competition, consumer rights, intellectual property, contractual obligations, health and safety, customer data. Risks include:  Non-compliance with laws and regulations or adverse rulings by regulatory authorities  Disputes with third parties and / or business partners The directors have prepared the interim financial information on a going concern basis. In considering the going concern basis, the directors have considered the above mentioned principal risks and uncertainties, especially in the context of the continuing difficult consumer and retail environment as well as the wider macro-economic environment in the euro zone and how these factors might influence the Group’s objectives and strategy which are set out in the Business Overview, Strategic Summary and Performance Review sections of the 2012/13 Annual Report and Accounts. After reviewing the performance of the business, the Group’s expenditure requirements, current financial projections and expected future cash flows, together with the available cash resources and undrawn committed borrowing facilities, the directors consider that the Group has sufficient covenant and liquidity headroom in its borrowing facilities and accordingly has adequate resources for the Group to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Dixons Retail plc Page 35 of 37

Independent Review Report

To Dixons Retail plc

Introduction We have been engaged by the Company to review the condensed set of financial statements in the interim statement for the 6 months ended 31 October 2013 which comprises the consolidated income statement, the consolidated statement of comprehensive income and expense, the consolidated balance sheet, the consolidated cash flow statement, the consolidated statement of changes in equity and related notes 1 to 12. We have read the other information contained in the interim statement and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have formed.

Directors' responsibilities The interim statement, including the condensed set of financial statements contained therein, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the Disclosure and Transparency Rules of the UK Financial Conduct Authority.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this interim statement has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting” (IAS 34) as adopted by the European Union.

Our responsibility Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim statement based on our review.

Scope of Review We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed set of financial statements in the interim statement for the 6 months ended 31 October 2013 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the European Union and the Disclosure and Transparency Rules of the UK Financial Conduct Authority.

Deloitte LLP Chartered Accountants and Statutory Auditor London, UK 17 December 2013

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Retail Store Data

Number of stores Selling space ‘000 sq ft

31 October 2013 31 October 2012 30 April 2013 31 October 2013 31 October 2012 30 April 2013

UK & Ireland UK 458 494 483 7,148 7,464 7,392 Dixons Travel (1) 41 38 41 56 51 54 Ireland 28 28 28 309 309 309 Total UK & Ireland 527 560 552 7,513 7,824 7,755

Northern Europe Norway 140 139 139 1,706 1,701 1,688 Sweden 74 70 74 1,483 1,413 1,434 Finland 40 40 40 702 702 702 Denmark (2) 37 37 37 636 620 636 Iceland 4 4 4 38 38 38 Czech Republic 23 20 21 508 494 517 Slovakia 4 4 4 69 69 69 Total Northern Europe (3) 322 314 319 5,142 5,037 5,084

Total Greece (3) 98 97 97 1,008 1,014 1,021

Total continuing Retail 947 971 968 13,663 13,875 13,860

Discontinued operations Italy (3) 144 142 144 2,134 2,093 2,089 Turkey (3) – 32 32 – 627 594 PIXmania – 27 10 – 45 14

GRAND TOTAL 1,091 1,172 1,154 15,797 16,640 16,557

(1) Includes Dixons Travel stores in Italy, Denmark, Ireland and Belgium (2) Includes Greenland and the Faroe Islands (3) Includes franchise stores

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