When will I receive my cash or share certificate?This all depends on the date you provide your instructions to YBS Share Plans – the sooner you provide your instructions the sooner you should receive your shares or cash. The table below clarifies when YBS Share Plans need to receive your instructions for the first four weekly batches, when your Sharesave account will be closed if you request.

The first exercise of shares following maturity is scheduled to take place on 1 February 2019 and you’ll need to provide your instructions to YBS Share Plans no later than 24 January 2019 to be included in this batch. There are three further batches scheduled (please refer to the dates in the timetable below).

After the dates advertised below, all instructions will be processed fortnightly for the remainder of the six month period in which you are entitled to buy the shares. If you choose to buy and keep the shares you should allow 30 days from the date YBS Share Plans close your Sharesave account and transfer the balance to Halfords Group plc for receipt of your share certificate.

Batch Deadline for receipt of keep instructions at YBS Share Plans

YBS Share Plans close your Sharesave account and transfer balance to Halfords

Group plc to cover cost of shares

Batch 1 24 January 2019 1 February 2019

Batch 2 01 February 2019 11 February 2019

Batch 3 08 February 2019 18 February 2019

Batch 4 15 February 2019 25 February 2019

Please note any forms received after 15 February 2019 will be processed fortnightly.

Please note all dates are subject to change. YBS Share Plans cannot be held responsible for any changes to advertised dates which are outside their control nor any resulting loss.

Dealing RestrictionsIf you’ve been notified by Halford Group plc that you’re subject to its employee share dealing rules, you must comply with the requirements of those rules and seek clearance in accordance with the rules before proceeding with any transaction. All team members will be subject to the general law regarding insider dealing e.g. dealing when in possession of inside information.

You have a choice to make

Contact Details

YBS Share PlansThe Halfords Group plc Sharesave is administrated by YBS Share Plans. If you have any queries about your Sharesave account, you may contact the:YBS Share Plans Helpline on

0345 1 200 300 (Lines open 8.30am-5.30pm Mon-Fri, 9am-1pm Sat excluding public holidays in England and Wales)

General Information:No information contained within this document or any accompanying document should be taken as providing any advice or as a recommendation to exercise or not to exercise your Option or, having exercised, to sell or not to sell your shares – the choice is yours. Neither Halfords Group plc or YBS Share Plans can advise you on the best course of action for you in your particular circumstances. Please remember that the price of shares, and the income from them, can go down as well as up, and that you may not recover the amount originally invested.It is advisable to keep copies of all documentation sent to YBS Share Plans and Halfords Group plc in relation to the exercise of your Option as you may need to refer to this information when completing future tax returns.

YBS Share Plans is part of Yorkshire Building Society. YBS Share Plans, Yorkshire House, Yorkshire Drive, Bradford BD5 8LJ. Tel: 0345 1 200 300. Fax: 01274 357 950. ybsshareplans.co.uk. Yorkshire Building Society provides Share plan trustee administration services, including deposit taking in the UK and subject to English law and regulation. We are not responsible for Share plan deposits held by local savings carriers outside the UK.Yorkshire Building Society is a member of the Building Societies Association and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Yorkshire Building Society is entered in the Financial Services Register under registration number 106085. Head Office: Yorkshire House, Yorkshire Drive, Bradford BD5 8LJ.Yorkshire Building Society is a member of the Financial Ombudsman Service. Further details are available on request from the Society.All communications with Yorkshire Building Society may be monitored/recorded to improve the quality of their service and for your protection and security. Calls to 03 numbers are charged at the same standard network rate as 01 or 02 landline numbers, even when calling from a mobile.

You have been saving for the last three years and on 1 February 2019 your Sharesave account will mature providing you have not missed any contributions.

At the time of writing this letter, the price of our shares quoted on the London Stock Exchange is lower than the Sharesave Option Price of £2.97, which means you could buy Halfords shares for less on the open market.

Please note however that the share price could go down as well as up and therefore we cannot guarantee the price of the shares on the date we receive the enclosed Maturity Instruction Form. Before you make your final decision, please ensure that you have checked the Halfords share price. This can be found at www.halfordscompany.com/investors/share-information.

Please read through the enclosed documents carefully so that you can make an informed decision as to what you want to do with the proceeds from your Sharesave Account.

Finally I would just like to thank you for taking part in Sharesave and for all of your hard work.

Regards

Graham Stapleton, CEO

Sharesave

2016 Sharesave Scheme MaturityThe Halfords Group plc

Made up your mind?Once you’ve decided what you would like to do, you have the choice of submitting your instructions by post, using the enclosed Maturity Instruction Form, or by using the secure online facility provided by YBS Share Plans.

By post

Once you’ve made your choice please complete the enclosed Maturity Instruction Form ensuring that you’ve indicated your choice of action by completing the relevant box(es) in Section One.

You’ll then need to complete the employment declaration (if applicable) in Section Three and enter your daytime contact telephone number, your signature and the date in Section Four.

Return the completed Maturity Instruction Form in the pre-paid envelope provided. Any incomplete or incorrectly completed forms will be returned to you and will inevitably cause a delay in the processing of your instructions for which YBS Shares Plans cannot be held responsible.

Residual BalanceIf you decide to buy the shares there will often be a small cash residue remaining in your Sharesave account. This is because it’s very unlikely that your savings will divide exactly by the fixed Option Price. You can choose to donate your cash residue to charity (no greater than the value of one more share at the fixed Option Price) or receive a refund of the residue when providing your instructions.

If you would like to donate this money to Halfords Group plc's nominated charity, NSPCC please place an X in the box at the bottom of Section One of the enclosed Maturity Instruction Form or tick the appropriate box if instructing online.

Selling your shares at a later dateIf you want to buy and keep your shares (see Choice 1 above) with a view to selling them at a later date, you can do so by making your own private arrangements with any broker of your choosing on receipt of your share certificate.

When your share certificate arrives you can either hold on to the shares or sell them whenever you want (subject to any dealing restrictions). You are able to use any broker of your choosing to sell the shares however Yorkshire Building Society offers a competitive share dealing service. You can find more details about the service online at www.ybs.co.uk/sharedealing or by calling 01892 700802. There is no obligation to use this service nor is this a recommendation to use the service.

Missed any payments? If you’ve missed any payments during the savings period (up to a maximum of 12) your Maturity date will be deferred by one month for every payment that you’ve missed and you’ll continue to have deductions taken from your pay until you’ve completed the 3 year savings contract. In these circumstances you’ll have six months from the deferred Maturity date (shown on the enclosed Maturity Instruction Form), in which to exercise your Option and buy your shares.

Any instructions received in respect of a deferred maturity will be processed at the first available opportunity following your deferred maturity date.

Leaving the Company?If you’re no longer an employee of Halfords Group plc or leave after the Maturity date but before you’ve provided your maturity instructions, you may not be able to buy the shares. This will depend on your reason for leaving and the date on which you left. If you’re in any doubt about whether you can buy any shares please contact the YBS Share Plans Helpline on 0345 1 200 300. If you’re able to buy shares, you must do so within six months of leaving Halfords Group plc or within six months of the Maturity date, whichever event comes first.

What about tax?Under current legislation there’s no Income Tax to pay as a result of buying your shares or taking your savings. You may however have to pay Capital Gains Tax (CGT) if you sell your shares at a profit (this is the difference between the cost of buying your shares and the price you sell them for minus any sale expenses). HM Revenue & Customs (‘HMRC’) currently allows you to make a certain amount of Capital Gains in each tax year without being taxed.

If your gain (which must include any other profit you’ve made within the tax year) exceeds the annual exemption limit, you’ll have to pay tax on any gain above this limit. The CGT limit for the 2018/2019 tax year is £11,700. You may be able to minimise your liability to CGT by:

- transferring shares to your spouse/civil partner prior to sale to set against their annual CGT exemption; or

- selling some of your shares in one tax year and the rest in other tax years.

Tax rules and legislation can change. Tax relief, which is referred to in this document, are those currently available and will depend upon your individual circumstances. If you are in any doubt as to the legal, financial or taxation implications (including any Capital Gains Tax considerations and the collection of such taxes) for you of the Exercise of Options, and/or the subsequent sale of shares, or the suitability of the maturity share dealing service, you should seek the advice of a qualified independent Financial Adviser duly authorised under the Financial Services and Markets Act 2000.

You’ve got choicesYou’re now invited to make a choice about what you would like to do with the savings in your Sharesave account.

The following choices are available to you:-

1 Buy and keep some or all of the shares at the fixed Option Price (£2.97).

2 Take a refund of the savings in your Sharesave account and not buy any shares.

Your choices explained

1 Buy and keep all of the shares

If you select this choice, you’ll be using the savings in your Sharesave account to buy the Halfords Group plc shares to which you are entitled and keep them in the form of a share certificate; this is otherwise known as ‘exercising your Option’.

When your share certificate arrives you have the choice to either hold on to the shares or to sell the shares. You’re able to use any stockbroker of your choosing to sell the shares. If you retain the shares, as a shareholder of the Company you’ll be entitled to receive dividends (if and when they are paid) and have the chance to vote on important issues at General Meetings of the Company.

The exercise of share Options is an involved process and therefore it may take a little time for YBS Share Plans to complete this process with Halfords Group plc and their share registrars. YBS Share Plans cannot be held responsible for any adverse movements in the share price during this period. Once the share Option exercise process is complete Halfords Group plc registrars will issue you with a share certificate in your name.

Please allow up to 30 days from the completion of the exercise process for receipt your share certificate.

2 Choose not to buy any shares and receive a cheque for the full account proceeds

You don’t have to buy Halford Group plc shares. If you prefer, you can simply request a refund of your savings. If YBS Share Plans have Bank Details registered against your Sharesave account your savings will be returned by Faster Payments, otherwise a cheque will be sent to your home address. Please allow up to 10 working days for receipt.

For this choice only, you can also call the YBS Share Plans Helpline on 0345 1 200 300 and close your account over the phone and recieve a cheque.

If you choose to close your account and take backyour savings, you still retain the right to buy shares at the fixed Option Price for the remainder of the six month period immediately following your Maturity date. If you decide to follow this course of action you’ll need to call the YBS Share Plans Helpline to make the necessary arrangements.

Go onlineYou now have the option to provide your maturity instructions using the secure online facility provided by YBS Share Plans by visiting www.ybsshareplans.co.uk/halfords. You’ll need to register to view your account online before you’re able to provide your instructions (unless you’ve already registered previously). You’ll need your Sharesave account number to hand and will be asked to provide some security information. Registration will only take a few minutes of your time. Once registered your login details will be sent to you through the post and you’ll then be able to provide your instructions.

Once you’ve logged in you’ll need to select the maturing Sharesave account in the account view section (please make sure the account number you select matches the account number stated on your Maturity Instruction Form), click on ‘Closure Options’, make your choice and then follow the onscreen instructions to complete the cash or shares closure process. You’ll receive an email confirmation once you’ve successfully submitted your instructions.

YBS Share Plans will use an electronic system to verify your identity when you provide your maturity instruction online. For further details about this and how to provide your instructions please refer to the ‘Online Instructions Guide’ at www.ybsshareplans.co.uk/halfords.

If you provide your instruction by more than one method your online instruction will be taken as your final instruction.

Remember - you don’t have to make up your mind straight away; you’re able to buy shares at the fixed Option Price up to six months following the Maturity date stated on the enclosed Maturity Instruction Form. Please note however that you’ll need to allow sufficient time for the processing of your instructions before your Option lapses and therefore it is recommended that you submit your instructions no later than 21 days prior to the Option Lapse date which is also stated on the enclosed Maturity Instruction Form.

Please note that if you decide to exercise your Option and buy the shares, that the value of your shares and any income from them can go down as well as up and that you may not recover the amount of your original investment. Past performance is no indication of future performance. It is recommended that you check the price of Halfords Group plc shares regularly before deciding whether or not to buy shares at the fixed Option Price.