Nordic Business Update - Dixons Carphone/media/Files/D/Dixons-Carphone/investors/... · 1,000 2000: Web site ... Improvement of manual forecasts from stores through ... – Service

Nordic Business Update

9 September 20119 September 2011

John BrowettChi f E tiChief Executive

Agenda

● Overview● Market background● Business modelBusiness model● Country overviews● Multi-channel opportunity● Store tours● Store tours

3 Nordic Business Update9 September 2011

The market leading electrical retailer in the Nordics

Single market approach Key facts

● Overall Nordic market share of more than 20%

● Group profit exceeds sum of● Group profit exceeds sum of competitors’

● 285 stores of which 37% are franchised

● Approx 7,000 employees

● Committed and experienced managementmanagement

● ”The Elkjøp concept”

● Strong culture cultivated through the organisation


“The winner takes it all”

Strong track record

● Outperformed market in the long and short term, good times and hard times● Consistent channel, format and range innovation

Cultivated concept

● A clear operating model that delivers results● Blend local market and customer knowledge with low cost centralised operation

Strong market presence ● Market leaders and growing share in all Nordic countries

Procurement● Aggregating volume delivers unrivalled negotiating power● Supply chain structure is cost effective for Elkjøp and suppliers

Prime location ● Strong retail sites in all countries with focused and active management

Culture ● The Elkjøp culture is ingrained throughout the business from sales to MD● Strong internal loyalty and determination to win


Elkjøp Nordic Management Team

● Marianne Kuras - CFO

● Marianne Nøkleby – Director Wholesale & Supply Chain

● Robert Grefstad - IT Director

● Tone Matssen – Marketing PR and HR Director

● Per Sigvardsson - COO

● Eirik Jarl Nilsen - Franchise Director

● Andreas Niss - MD Elkjøp Norway

T d S l

● Ronny Blomseth – MD

● Trond Samuelsen - MD Lefdal Norway

● Anders Nilsen - MD Elgiganten Sweden

J B MD El i t D k● Jesper Boysen - MD Elgiganten Denmark

● Irmeli Rytkonen - MD Gigantti Finland


Ronny BlomsethMD ElkjøMD - Elkjøp

Agenda

● Overview

M k b k d● Market background● Business modelBusiness model● Country overviews● Multi-channel opportunity● Store tours● Store tours


ELKJØP39 STORES

ELGIGANTEN53 STORES

ELGIGANTEN28 STORES

GIGANTTI22 STORES

ELKOFRANCHISE4 STORES

ELDINGFRANCHISE3 STORES

PISSFIKFRANCHISE6 STORES

ELKJØP EXPRESS17 STORES

F‐GROUP65 STORES40% OWNERSHIP

ELGIGANTENFRANCHISE17 STORES

GIGANTTIFRANCHISE19 STORESS O S

ELKJØPFRANCHISE55 STORES

7 STOR S 9 STOR S

285 stores in 7 countriesLEFDAL20 STORES

LEFDALFRANCHISE2 STORES2 STORES

9 September 20119 Nordic Business Update

Elkjøp Nordic have a record of long term growth

2 500● 1962: Elkjøp Norway foundedGBPm

Revenue growth Major achievements

2,000

2,500 ● 1986: Super store concept introduced● 1994: ElGiganten Sweden established● 1996: ElGiganten Denmark established● 1996: Acquired Lefdal Lavpris (NO)

1,500

● 1996: Acquired Lefdal Lavpris (NO)● 1997: Nordic distribution center established● 1999: Gigantti Finland established● 2000: Acquired by Dixons Group

14.6% CAGR

1,000

● 2000: Web site launched● 2001: Acquired Super Radio (DK)● 2005: Acquired Markantalo (FI)● 2005: Acquired Electronic World (DK)

500

● 2005: Acquired Electronic World (DK)● 2006: PC City transferred from Dixons Group● 2006: Acquired 40% of Fona Group (DK)● 2007: Acquired Electric City (DK)

0

04/05 05/06 06/07 07/08 08/09 09/10 10/11

● 2008: Elkjøp Express established● 2009: Closed down unprofitable chains in

Sweden (PC City) and Finland (Markantalo● 2011: Acquired Epoq kitchen in June 2011


● 2011: Acquired Epoq kitchen in June 2011Source – Dixons Retail Accounts

Unique business model has enabled Elkjøp to outperform the market

I t t i d

Elkjøp LfL Index vs retail Index

● Investment in good locations

●Store refurbishment135

140

145

●Store refurbishment

●Category development125

130

●People development

●Constant low price i ti

110

115

120

communication

●Strong brand preference100

105

02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11

*Elkjøp like for like sterling revenue growth indexed to base value 100 in FY02/03

**Eurostat retail data for Norway Sweden Denmark and Finland are equally weighted

Elkjøp Group * Nordic Countries Index ** EU Countries Index


Eurostat retail data for Norway, Sweden, Denmark and Finland are equally weighted and indexed to base value 100 in 02/03

Online is the big opportunity

140 000

160,000

●Online market now starting to take shape

120,000

140,000 starting to take shape

●Market growth expected to come

80,000

100,000expected to come through online channel

40,000

60,000 ●Opportunity for– Established brands

M lti h l t

0

20,000

– Multi-channel operators

02006 2007 2008 2009 2010 2011 2012 2013 2014

Online Stores


Source: Eurostat , Datamonitor and Dixons Retail estimates

Competitive landscape is comprised of a few large operators

Key Competitor

Market presence

Key characteristics Key product categories

25%

Expert NO, SE , DK, FI, EST

- Small and medium sized stores- Own and franchise stores- Acquired 30 Onoff stores July 2011

MDA, CE

Komplett NO, SE, - Major eCommerce player Computing

51%

Other

DK, FI - Ownership in MPX and computer components

Siba NO, SE, DK

- Medium sized stores- Very strong in sales of insurance

d dit l

Computing, Telecom, Foto

4%

10% and credit sales- Ownership in NetonNet- Own stores

MediaMarkt SE - Large stores CE, 4%

4%2%

- High share of self-service and low share of customer service in the stores

- Own stores

Computing, Telecom, Foto

F-Group DK - Small and medium sized stores- Own stores- 40% owned by Elkjøp Nordic AS

Brown Goods, Entertainment


Source: Annual reports, market data and management estimates

Agenda

● OverviewM k t b k d● Market background

● Business modelBusiness model● Country analysis● Multi-channel opportunity● Store tours● Store tours


Clear business objective

VISIONTh E th’ t t t i d fit bl t il !The Earth’s most customer centric and profitable retailer!

CUSTOMER PROPOSITIONCUSTOMER PROPOSITIONOffer a rich choice of quality brands at the lowest price to most people.

BUSINESS IDEABeing the most efficient and profitable distribution channel for consumer electricals, g p

electrical household appliances and related services.

The Elkjøp concept includes centralised purchasing, centralised distribution, superstores with large showrooms and multi-channel offerings


Key success factors for electricals operation

● High sales densities

● Lean back office organisation

● Cross border synergies

● Standard operating model

● Part time employees in high season● Part time employees in high season

● Logistics and central distribution centre

● Common IT systems supporting the operating model

● Multichannel – internet is growing as a sales channel with low costs


Elkjøp focus is to lower costs to sales

●Elkjøp has continued to lower costs even in difficult times

●Variances appear during the year, but objective remains the same

32%

34%

OnOff bankrupt July

2011

26%

28%

30%2011

22%

24%

26%

18%

20%

2007/08 2008/09 2009/10 2010/11

Elkjøp Fona Media OnOff SIBA

“The key to success is the balance between costs and margin!”


y gSource: Annual reports, market data and management estimates

A lean organisational structure

MD

Operations Support functions

Finance Support & Business NordicMultichannel Finance Control DevelopmentWholesaleMultichannel

PRODUCT CATEGORY

SALESSALESSALES

PURCHASINGDIRECTOR

PURCHASINGDIRECTOR

PURCHASINGDIRECTOR BUYING

SALES MANAGER

PURCHASINGDIRECTOR

SALES MANAGER

SALES MANAGER

SALES MANAGER

SALES MANAGER

SALES MANAGERMANAGERMANAGER CHAIN

DEPARTMENTMANAGER STORE

Management are close to the market enabling quick decision-making


g g q g

Win model – best for customers and best for us


In depth training and embedded culture

● Product training– Centralised training of all employeesg p y– Centralised training of specialists– Local product training in store

Online training of new employees– Online training of new employees

● Selling and win training– All employees once per year– Continuous assessment through reporting and

management

● Culture– All employees includes those in back office– Strength in teamwork


Centralised procurement is key

● Local product managers decide ●Centralised purchasing across territories

Elkjøp buying model Key elementsp g

ranges

●Elkjøp procurement strategy based on huge bulk purchases

p g

●Annual purchasing contracts

●Net/net pricing on huge bulk purchases

●Centralised purchasing function located in Elkjøp Nordic – Supported

●Net/net pricing

● Large volume of narrow agreed ranges

by the Dixons Retail group

●Category purchasing managers are responsible for negotiating both

●Volume forecasting

●Few variationsresponsible for negotiating both product prices and volumes

●Supporting local sales managers who

●Control of consumer product decision

●Minimum need for local supportare close to the customer

● 90% of total buying● ”Elkjøp” one country


Supported by an efficient distribution platform

● Range management

Elkjøp vs competitors Supply chain principlesg g

– A very tight range, with wide choice for customers, but with most of the sales and profit from win products

● Stock managementCENTRAL WAREHOUSE

MANUFACTURER

p ● Stock management

– Manage stock by product type, advertising, win/support lines and range

● Supplier management

P t ith k li t i d

CENTRAL WAREHOUSE90%DIRECTLY

10%

STORES

Elkj

øp

– Partner with key suppliers to increase speed and flow of products and information

● Availability

– Make sure no one tries harder than us to get

STORES

STORESgreat availability on advertising and win/support products

– Try to always be in stock

● Reverse logisticsmpe

titor

SUPPLIERS/WAREHOUSE g

– Only send product one way, don’t spend time or money on reverse logistics

● 3rd party deliveries and cross docking

Com

MANUFACTURER


Jönköping is a key element of centralised distribution

●All goods purchased by Elkjøp Nordic are shipped directly to Nordic Distribution Center in Jönköping, Sweden

●Built in 1997 - expanded in 2000 and 2007●Storage area: 95,000 m2

85 d ki b d il li● 85 docking bays and own railway line● 250-500 employees● 130 forklifts●Goods arrival:

– 825,000 m322 000 t il– 22,000 trailers

– 2,500 railway wagons– Online order confirmation &

booking – eLOG Jönköping


Road, Rail and Sea links in central location


Stock management improvements

Retail Wholesale

1. Improvement of manual forecasts from stores through training

1. Monitoring stock days rather than total stock levels

training

2. System upgrades to support more automated forecasting

2. Stock days for benchmark stores to be implemented for the rest of

more automated forecasting from stores

3 3rd party and cross docking

the stores

3. Improved systems, training and 3. 3rd party and cross-docking

options (integrated with suppliers)

focus

pp )

Targeting a 10-15% improvement in stock turn


g g p

Flexible store format●4 different formats:

– Elkjøp Express

– Franchisees

– Superstores

– Megastore

●Fomats deployed depending on:

– Customer segments

– Location type & drive times

– Market size (by sector)

C titi– Competition

– Service requirements


Express store format

●Mobile and Data communication specialistco u cat o spec a st

● Located in shopping centers and on high streets

●Typically 50 sqm ●Average sales of NOK5m● 17 stores in Norway● 17 stores in Norway ●Further 50 stores planned●Express customers: p ess custo e s

– Young people– Older people

Women– Women


Franchise stores● 102 stores across the Region

●Avg sales area: 650 sqm

55 storesRepresent 49% of total no.28% of retail revenue


●Purpose of franchise– Fits smaller markets – Add volume– Add volume

– Increased profitability– Increased buying power

F hi t


●Franchise concept– No franchise fees– No royalty or license fees

17 stores– All investments and costs born by

franchisee (incl. establishment)

● Low investment and high profitability


Low investment and high profitability


Superstores

●Backbone of portifolio

●144 across Nordics

●From 1,000 – 2,500 sqm

●Catchment area from 30,000

●Typical rent of NOK1200 per Sqm

●Offering full specialist range of consumer electricalsconsumer electricals– 5,000 SKUs

●Full service offering●Full service offering


Megastores●First Megastore in Lorenskog

opened in May 2008

21 M t● 21 Megastores now open

● 5 more will open in 2011

O t it f t t l f●Opportunity for a total of 40-50 across Nordics

●Average size of 2,500 to g ,5,000 sqm

●Catchment area fom 80,000

●Extended specialist product range– 15,000+ SKUs,

●Enhanced range of services and product demonstration


Opportunity in added value services

SPECIALIST OPPORTUNITY●A trusted, knowledgeable technology expert who’s always by your side

d idand on your side

RELATIONSHIP OPPORTUNITY●Convert ‘service-minded’ segments from occasional customers into life

time members

INCREASED VOLUME & QUALITY OF SALES OPPORTUNITIES

●Step-change sales of existing attached services

●Create new range of AVS services to enable customers to get ‘more out of…’

●Drive sales of repair and fix services as default/trusted option

●Create relationships with non-Elkjøp customers


Roll out plan for a wide range of added value services DELIVER &

INSTALLSETUP &

UPGRADEHELP &

SUPPORTREPAIR & PROTECT

● Delivery options– Express– Time to suit

● Installation standalone

● Computer “ready to go”

● Mobile “ready to go”

● Mobile “ready to go” advanced

● Support agreements

● Data transfer

● Date erase

S t

● Insurance

● Instant replacement (under NOK1000)

standalone– Computer– Aerial– Set top boxes– MDA

● Installation with

advanced

● GPS “ready to go”

● Internet ready set-up

● Camera set up

● System rescue

● Online storage/sharing

● iPad media stream

● Virus removal● Installation with delivery– Laundry– Refrigeration– Swap doors

Cooking

p

● Memory upgrade

● Software installation

● Operating system

● Virus removal

● Home network trouble shooting

● Driver downloads– Cooking– Built-in– TV system set up– TV Wall mount

● Home Network set up

install/upgrade for:– Computer– Mobile– GPS

● Component upgrade

● Health check

● Speed up your PC

● Data recovery● Home entertainment

setup

● Component upgrade

● Online tutorials ● Data recovery Advanced

● Repairs


Flexible operating model

1. 100% outsourced and 3rd party solution●Repairs today●Repairs today●Home delivery in Norway, Sweden and Finland

2. Partnership with ownership●Home delivery in Denmark

3. In house solution●Technical helpdesk for Elkjøp Nordic


Example from Norway “Computer – Support agreement”

● What we do for the customer1 Unpack PC start up1. Unpack PC start up

2. Run full preparation and image install

3. Install software and tune for best fperformance

4. Install Online backup and anti virus protection

5. Setup of wireless network

6. Function test

7 Al il bl t t7. Always available to support

8. 36 month insurance

● Price NOK 3 495 good margin● Price NOK 3,495,- good margin

● Approx 1/3rd are sold with “ready to go”g


Agenda


● Business model

● Country analysis● Multi-channel opportunity● Store tours● Store tours


Outperformance has been in all product categories, in all countries (last 18 months)

92

100

98Brown Goods*

White Goods*

90

104

110

91

97

108

96

109

105

103

104

111

White Goods

SDA*106

114

119

105

117

142

109

122

117

102

103

109Computing**

102

106

106

98

101

117

110

100

125

103

110Telecoms**

Base level = 100

117

Base level = 100

120

Base level = 100

105

Base level = 100

Market Index FY 2010 + H1 2011 Elkjøp Index FY 2010 + H1 2011

- Elkjøp Index is based on sales to retail, compared to last year sales


- Market Index is based on Dixons Retail estimates- Data are sales values (*) or sales volumes (**)

Elkjøp and Lefdal – leaders in Norway

Extensive store network Historical performanceSales

9000

Sa esNOKm

39 Elkj tNorway 8000

8500

• 39 Elkjøp stores

• 17 Elkjøp Express stores

• 55 Elkjøp franchise stores

• 20 Lefdal stores

7500

• 2 Lefdal Franchise stores

• 2,000 Employees (FTE)

• 115,230 Sqm selling space 6500

7000

• Main competitors:• Expert• Komplett• Euronics

2008/09 2009/10 2010/11


Elkjøp market leader in all major cities, Lefdal no.2

●The Elkjøp Group has a c.30% market share in Norway

Ekjøp is definite market leader– Ekjøp is definite market leader– Competes alongside Expert in major

citiesElkj i ifi t b i i– Elkjøp possesses significant bargaining power against suppliers

– Strong brand awareness– Excellent store portfolio

●Elkjøp expected to be less exposed to●Elkjøp expected to be less exposed to current global downturn

●Expert operates more stores than Elkjøp but those are smaller and haveElkjøp, but those are smaller and have lower turnover

●Well developed eCommerce marketKomplett no 3 regardless of channel

31%


– Komplett no.3 regardless of channel

Positive outlook for electricals in Norway

8.0%

10.0%

35,000

40,000

6.0%30,000

4.0%

20,000

25,000

0.0%

2.0%

10 000

15,000

(2.0)%5,000

10,000

31%

(4.0)%02007 2008 2009 2010 2011F 2012F 2013F

Electricals spend Growth


Source Dixons Retail estimates NOKM

ElGiganten 50% growth since Media Markt entry

Largest store network Historical performance

S l

7,000

Sales NOKm

Sweden• 53 El-Giganten stores 6,000

• 17 El-Giganten franchise stores

• Electroworld on line brand

• 1,350 Employees (FTE) 5,000

• 108,063 Sqm selling space

• Main competitors:• Media Markt• Siba/NetonNet 4,000

2008/09 2009/10 2010/11• Expert 2008/09 2009/10 2010/11


Sweden is the biggest market but extremely competitive

●ElGiganten has a c.18% market share in Sweden– Market leader, but tough competition from

Media Markt●Fragmented market

– Several competitors with 5-10% market shares

●Consolidation has started●Consolidation has started – NetOnNet acquired by SIBA in February– OnOFF bankrupt in July– Growth opportunity

●eCommerce market well developed– Dustin and CDon are largest playersg p y– Competitive opportunity through

elgiganten.se and electroworld.se


Forecasts for steady growth in Sweden

6.0%4,600

4 0%

5.0%

4 200

4,400

3.0%

4.0%

4,000

4,200

2.0%3,800

1.0%3,600

0.0%3,4002007 2008 2009 2010 2011F 2012F 2013F



Source Verdict electrical spend Eurom

Danish operations developed with Elkjøp “win-model”

Growing store network Historical performanceSales

Denmark• 28 ElGiganten stores

3500

Sales NOKm

• 28 ElGiganten stores

• 800 Employees (FTE)

• 47,527 Sqm selling space

• Main competitors:3000

• Expert• Fona

2500

20002008/09 2009/10 2010/11


Danish market is consolidating

●ElGiganten has c.14% market share in Denmark– Market leader– Has benefitted from consumers move

from high street to out of towng

●ElGiganten, Expert and F-Group are largest players– Many niche stores– 8 big mixed electrical retail brands have

closed since 2000

●Success with ”win-model” since 2009– Outperforming market and increasing

market sharemarket share

●Potential for ElGiganten franchise and some more stores


Strong recovery since 2009 in electricals spend

5.0%

6.0%

2,600

2,650

3.0%

4.0%

2,500

2,550

1.0%

2.0%

2 400

2,450

,

(1.0)%

0.0%

2,350

2,400

(3.0)%

(2.0)%

2,250

2,300

(4.0)%2,2002007 2008 2009 2010 2011F 2012F 2013F




Solid earnings in Finland post closure of Markantalo

Established store network Historical performanceSales

• 22 Gigantti stores19 Gi tti f hi t

Finland 400,000NOKm

• 19 Gigantti franchise stores• 600 Employees (FTE)• 45,658 Sqm selling space• Main competitors:

• Expert

350,000

p• Verkkokaupa• Musta PÖrssi• Veikon Kone 300,000

250,000

200,0002008/09 2009/10 2010/11


Finnish Gigantti has a strong brand in both channels

●Gigantti has c.23% market share in Finland

●Very strong brand recognition– Service– Low price perception

●Gigantti and Expert are largest playersFragmented market– Fragmented market

– Many niche stores

●Tough competition from g pverkakkauppa.com

●Fantastic success since the start

●Potential for growing the franchise business


Finish market expecting more modest recovery €M

6.0%

7.0%

2,580

2,600

€M

3 0%

4.0%

5.0%

2,540

2,560

1.0%

2.0%

3.0%

2,500

2,520

(1.0)%

0.0%

2,460

2,480

(4 0)%

(3.0)%

(2.0)%

2 400

2,420

2,440

(4.0)%2,4002007 2008 2009 2010 2011F 2012F 2013F




Agenda


● Business model● Country analysis

● Multi-channel opportunity● Store tours● Store tours


A difficult birth…“Internet is a flop” “Internet is a temporary trend”

Multichannel milestones:1996 Elkjøp Contact centre was launched1997 ElGiganten Sweden contact centre launched1998 cyberia.no was launched – “games”1998 ElGiganten Denmark contact centre launched1999 elkjop.no was launched2000 elgiganten.se, elgiganten.dk, gigantti.fi launches2002 Full eCommerce platform was launched2008 Elkjøp online market leader within Multichannels2009 Elkjøp online market leader within B2C2010 Gigantti contact centre launches

Ines Uusmann, Swedish Minister of communicationSvenska Dagbladet 12 May 1996

Leif Osvold, Norwegian debaterDagens Næringsliv, 20 August 1996 Svenska Dagbladet, 12 May 1996Dagens Næringsliv, 20 August 1996


Importance of online retailing

●eCommerce is a major global trend

Why internet is important Key features●eCommerce is a major global trend

penetrating the traditional brick store concept

●Online retailing possesses several

67%

55%Easier

Cheaper

●Online retailing possesses several advantages over traditional retailing

– Allows business without barriers of time and distance

46%

39%Easy to compare prices

Found what I wanted

– Expands market size– Reduces direct cost of sales

●7% of online buying is at

28%

27%

Open 24/7

Door delivering

elkjop.no, Elgiganten.se, Elgiganten.dk and Gigantti.fi

– Expected to increase in coming years

26%

22%

21%Used to shop online

Easy to get info

Fast delivery

●Elkjøp has the preferred homepage for seeking information in Norway and Finland

21%

9%Ok terms of payment

Used to shop online


Source: Carat Insight & Norstat,

Pureplay vs Multichannel

Local Multichannels

Global Multichannels

Local Pureplayers

Global PureplayersMultichannels Multichannels Pureplayers Pureplayers

Example Example Example Example

Prime strategy Prime strategy Prime strategy Prime strategy


Top 5 Nordic internet operatorsOperator Markets

presenceCustomer segment focus

Focus and range

Traffic rank* Annual turnover online

Profit

.SE B2B, B2C (80/20) Consumer electronics,

NO 392 / SE 192 € 440 M € 5,4 M

.NO

.DK

Pureplayerelectronics,

11.900 SKU’sDK 1195 ~ 24,4% market share

All B2B, B2C (60/40)

P l i k

Consumer electronics

NO 78 / SE 164

DK 354

€ 331 M

18 4% k t h

€ 5,7 M

Pureplayer w pick-up points 6.300 SKU’s

DK 354 ~ 18,4% market share

All B2C

Multichannel

Consumer electronics, Domestic

NO 74( #1) /SE 127 (#2)DK 70 (#1) /

€ 220 M

~12,2% market share

n/a

Domestic appliances

4.900 SKU’s

DK 70 (#1) /FI 96 (#2)

,

All B2C Entertainment products consumer

NO 136 € 150 M n/a

Pureplayerproducts, consumer electronics

448.000 SKU’s

SE 78 ~ 8,3% market share

All B2C, B2B (90/10) Consumer l t i

? € 107 M n/a

Pureplayer, Multichannel

electronics,

14.300 SKU’s~ 5,9% market share

* Estimated total Nordic eCom market 2011, 1,8 bn Euro* Statistics from Alexa.com


Multi-channel offering wins●Multi-channel better than pure play

●Largest competitors have weak multi-h l ff ichannel offering

– e.g. Media Markt, Komplett and Expert

● Internet sites– Keeping customers with Elkjøp while leveraging on

eCommerce trends– Provides extended range in stock efficient manner– Launched in 2000– Opportunity for higher average purchase– Stores provide after sales comfort to customers

●Physical storesC di ib i h l– Core distribution channel

– Several size formats

●Collect@StoreE h d lti h l i t ti– Enhanced multi-channel integration

– Provides convenience and lower cost (no postage) for the customer

– Minimal incremental cost to Elkjøp


Multichannel strategy

Stores WEB Contact Centre Franchise

● Variable ranges

● Variable prices

● Variable service

● Widest range

● Lowest price

● Variable service

● WEB offer ● Variable ranges

● Variable prices

● Variable serviceurre

nt

Variable service

● Variable offer

Variable service

● Variable offer

Variable service

● Variable offerCu

● Equal ranges

● Equal prices

● Equal service

● Equal ranges

● Equal prices

● Equal service

● Equal ranges

● Equal prices

● Equal service

● Equal ranges

● Equal prices

● Equal serviceture

● Equal service

● Equal offer

● Equal service

● Equal offer

● Equal service

● Equal offer

● Equal service

● Equal offerFut

Store sizes will vary: We will not overinvest to provide

Everything to Everyone Everywhere!


y g y y

Summary

●Very strong business model

●Leading market shares

●High sales densities●High sales densities

●Centralised operational structure

●Low cost to sales

●Opportunities to take market share●Opportunities to take market share

●Growing markets


Cautionary statement● All statements other than statements of historical fact made in this presentation, including, without

limitation, those regarding Dixons Retail’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Dixons Retail’s renewal and transformation plan, the roll out of “Megastores”, its focus on increasing its presence on the web and its ongoing expansion in the Nordics and Central and Eastern Europe) arepresence on the web and its ongoing expansion in the Nordics and Central and Eastern Europe), are forward looking statements. 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.

● Such forward-looking statements are based on numerous assumptions regarding Dixons Retail’s● Such forward looking statements are based on numerous assumptions regarding Dixons Retail s present and future business strategies and the environment in which Dixons Retail will operate in the future. Among the important factors that could cause Dixons Retail’s actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, the continuing impact of the economic downturn on consumer spending, the actions of its competitors, difficulty in implementing the renewal and transformation plan stock availability from or change in thedifficulty in implementing the renewal and transformation plan, stock availability from or change in the commercial relationships with third-parties whose products we sell, failure to meet debt obligations, changing technology or consumer preferences, seasonality of our business, the effects of deflationary pricing on money margins and other such risk factors. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements These forward-looking statements speak only as of the date of this presentation Unlessstatements. These forward looking statements speak only as of the date of this presentation. Unless otherwise required by applicable law, regulation or accounting standard, 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.

● The information, statements and opinions contained in this presentation do not constitute a public offerThe information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to buy any securities or financial instruments or any advise or recommendation with respect to such securities or other financial instruments.


Documents

Nordic Business Update - Dixons Carphone/media/Files/D/Dixons-Carphone/investors/... · 1,000 2000: Web site ... Improvement of manual forecasts from stores through ... – Service