12 December 2019 Unaudited Results for the Half Year Ended 26 October 2019 Performance robust, good progress on transformation � Group adjusted * profit before tax of £24m (H1 2018/19: £60m) � Group statutory loss before tax of £86m (H1 2018/19: loss of £440m) � UK & Ireland H1 Electricals revenue -1%, like-for-like revenue flat o Q2 like-for-like -2% against tough comparatives o Share gains online and in-store against market down -3% in H1 o H1 profits down as expected given investment in customer proposition � International H1 revenue +1%, like-for-like revenue +3% o Q2 like-for-like revenue +1% o S hare gains across all markets with strong online growth o Profit growth driven by sales and operating margin improvements � UK & Ireland H1 Mobile revenue -18%, like-for-like revenue -10% o In line with plan, guidance for £90m * loss for the year unchanged o Traditional postpay market continues to be challenging, down -8% in H1 o Negative network debtor revaluation of -£26m � Transformation driving increasing customer satisfaction across Group o Online / Multichannel: Online growth in Electricals +11%. 81 UK stores remodelled o Credit: UK Credit adoption over 11%, active customers +15% since year end o Services: Improved protection products to launch in the UK this financial year o Mobile: New mobile offer to launch in H1 2020/21 o Colleagues : Quadrupled investment in training. Extending share award o One Business: On track to deliver £200m of cost savings by FY22 o Stronger Infrastructure: Good progress on IT, rephasing of spend on larger projects � Adjusted PBT * expected to be around £210m for FY20, as previously guided � Capital expenditure to be c.£200m (from £275m) due to rephasing of IT spend, adjusted net debt * expected to be lower year-on-year � All medium-term guidance unchanged *See page 2 for the basis of preparation for all performance measures and guidance given. Alex Baldock, Group Chief Executive, said: “We’re on track to deliver what we promised this year, and with our longer-term transformation. In a tough UK Electricals market, we’ve gained significant share, and strengthened our market leadership. Our planned investments in the colleague and customer experience have played a big part in this resilient performance, demonstrated by sharply increased customer satisfaction scores. Our big International business also registered market share gains in every territory, with solid sales and margin improvements. And we’ve taken important strides in our transformation. It’s easier for customers to shop how they want: we’re now gaining share Online as well as in stores, where we are investing to create exciting, enticing stores. More customers can also afford the tech they want: we now won’t be beaten on price, and more are taking up our Credit offer. More, too, are getting the most out of their tech through our Services. Mobile is challenging as expected. As promised, this will be the trough year for Mobile losses, and it will be break-even by 2022. Good progress, yes, but all of us at Dixons Carphone are shareholders, and conscious that our business is still nowhere near its full potential. We’re determined to realise that potential, and confident we’re on the right path to do so.” 1
12 December 2019 2019/20 2018/19 Reported Local Like-for- H1 Revenue Currency Like £m £m % change % change % change UK & Ireland Electricals 1,979 1,997 -1% -1% 0% International 1,904 1,887 1% 3% 3% - Nordics 1,677 1,675 0% 3% 2% - Greece 227 212 7% 8% 8% Electricals 3,883 3,884 0% 1% 1% UK & Ireland Mobile 830 1,009 -18% -18% -10% Group 4,713 4,893 -4% -3% -1% Q2 2019/20 Quarterly Revenue Q1 2019/20 Local Like-for- Local Like-for- Reported like Reported currency currency like UK & Ireland Electricals -3% -3% -2% 2% 2% 2% International -2% 2% 1% 4% 5% 4% - Nordics -3% 1% 0% 4% 5% 4% - Greece 8% 9% 9% 7% 6% 7% Electricals -2% -1% 0% 3% 3% 3% UK & Ireland Mobile -23% -23% -10% -12% -13% -10% Group -7% -5% -2% 0% 0% 0% Basis of preparation In the reporting of financial information, the Group uses certain measures that are not required under IFRS. We consider that these additional measures (commonly referred to as ‘alternative performance measures’ or “APMs”) provide additional information on the performance of the business and trends to shareholders. These measures are consistent with those used internally and are considered critical to understanding the financial performance and financial health of the Group. These APMs (including adjusted results, free cash flow, net debt, local currency % change and like-for-like % change) are defined in the glossary on page 50. Items excluded from adjusted results can evolve from one financial year to the next depending on the nature of exceptional items or one-off type activities. During the period the Group has adopted IFRS 16 which requires lease liabilities and corresponding right-of use assets to be recognised on balance sheet. The Group has adopted IFRS 16 using the modified retrospective approach, as a result prior year comparative numbers have not been restated. The adoption of IFRS 16 has a material impact on the current year reported performance, composition of net debt and presentation of cash flows for the period. In the current period the adjusting items therefore include the impact of adoption of IFRS 16 using the modified retrospective approach. The Directors believe this adjustment is helpful in the current year to aid shareholders in comparability with prior periods. Following the separation of the UK & Ireland mobile reporting segment in the prior year, those performance measures, internal targets and KPIs reviewed by the Board and performance guidance given to the external stakeholders have evolved to provide greater transparency over in year trading results. To reflect this, current year adjusting items include the impact of revaluations of network debtor balances due to changes in assumptions, where the original transaction was recorded in periods prior to the current financial reporting year. The removal of such items is considered to be additional useful information to aid the understanding of current year trading. Details of all adjustments can be found in note 2 to the financial information. Prior year comparatives have been restated accordingly. All guidance is based on assumption of no major macro-economic changes, for example no material impact from Brexit, and the profit numbers also exclude any significant revaluation in network debtors, up or down, which might arise from changes in the regulatory environment or for other reasons. It is also before implementation of IFRS 16. 2
12 December 2019 H1 Profit, EPS and Net Debt 2019/20 2018/19 2019/20 2018/19 Statutory Statutory Adjusted Adjusted £m £m £m £m % EBIT change UK & Ireland Electricals 19 (44) 31 42 -26% International 55 44 54 50 7% - Nordics 46 38 47 44 6% - Greece 9 6 7 6 15% Electricals 74 - 85 92 -8% UK & Ireland Mobile (107) (423) (49) (21) -133% Group EBIT (33) (423) 36 71 -49% Net finance costs (53) (17) (12) (11) (Loss) / profit before tax (86) (440) 24 60 Tax 16 (20) (14) (5) (Loss) / profit after tax (70) (460) 19 46 Basic continuing (loss) / (6.0)p (39.7)p 1.6p 4.0p earnings per share Discontinued (2) (12) operations Statutory loss after tax (72) (472) Basic loss per share (6.2)p (40.7)p Net debt (1,592) (274) (290) (274) Next announcement The Group will publish its Peak Trading Statement on Tuesday 21 January 2020. 3
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