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Consolidated Cash Flow Statement Net cash inflow/(outflow) from operating activities 11 140.9 (0.5) 300.8 Returns on investments and servicing of finance Interest received 24.4 21.7 45.4 Interest paid (1.8) (0.6) (19.7) Preference dividends paid (2.2) (4.4) (8.9) Note 20.4 16.7 16.8 Taxation paid (1.0) (1.4) (58.7) Capital expenditure and financial investment Purchase of fixed asset investments (13.0) - - Purchase of tangible fixed assets (64.6) (58.9) (88.8) Sale of tangible fixed assets 10.1 1.2 3.3 Acquisitions and disposals (67.5) (57.7) (85.5) Cash consideration for acquisitions (2.2) (18.0) (18.0) Net cash acquired with subsidiary 0.1 - - Cash consideration for partial sales of subsidiaries 3 242.2 7.5 7.5 240.1 (10.5) (10.5) Equity dividends paid (53.4) (42.1) (57.3) Net cash inflow/(outflow) before management of liquid 28 weeks ended 13 November 1999 £million 28 weeks ended 14 November 1998 £million 52 weeks ended 1 May 1999 £million resources and financing 279.5 (95.5) 105.6 Notes to the Interim Financial Report 1 Basis of preparation The interim financial report has been prepared using accounting policies consistent with those set out in the financial statements for the 52 weeks ended 1 May 1999. During the period, Financial Reporting Standard 15 (FRS 15) “Tangible Fixed Assets” was adopted by the Group. This has not resulted in any material change in the Group’s treatment of fixed assets. The interim financial report does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. It is unaudited but has been reviewed by the auditors. Their report is on page 15. The financial information for the 52 weeks ended 1 May 1999 has been extracted from the financial statements for that period. Those statements, which contain an unqualified auditors’ report, have been delivered to the Registrar of Companies. The Interim Statement for the 28 weeks ended 13 November 1999 was approved by the directors on 12 January 2000. 2 Segmental analysis of turnover and operating profit 28 weeks 1999/00 Turnover £million Operating profit £million Turnover £million 28 weeks 1998/99 Operating profit £million Turnover £million 52 weeks 1998/99 Operating profit £million Retail - base 1,675.7 71.5 1,425.9 63.1 3,089.9 202.5 - exceptional - (4.9) - (12.0) - (13.3) European Property 38.6 6.3 29.3 4.0 64.1 8.0 Freeserve 7.2 (10.0) 0.2 (0.5) 2.7 (1.5) Intragroup adjustments (0.8) - (0.2) - (0.4) - 1,720.7 62.9 1,455.2 54.6 3,156.3 195.7 Management of liquid resources (Increase)/decrease in current asset investments (117.7) 42.6 (131.7) Financing Issue of Ordinary share capital 11.1 5.0 8.8 Decrease in debt due within one year (1.8) (7.0) (12.1) (Decrease)/increase in debt due after more than one year (3.3) 7.9 (15.8) 6.0 5.9 (19.1) Increase/(decrease) in cash in the period 12 167.8 (47.0) (45.2) Segmental analysis of net assets 13 November 1999 £million 14 November 1998 £million 1 May 1999 £million Retail 295.2 383.6 275.8 European Property 61.1 116.8 88.5 Freeserve 10.4 (0.3) (1.5) Net operating assets 366.7 500.1 362.8 Net non-operating liabilities (150.2) (123.3) (110.0) Net funds 804.0 305.2 511.9 Net assets 1,020.5 682.0 764.7 8 Dixons Group plc Dixons Group plc 9
Notes to the Interim Financial Report continued Net funds include investments of £304.0 million (14 November 1998 £273.0 million) held under trust to fund extended warranty liabilities, resulting in a net free cash balance of £500.0 million (14 November 1998 £32.2 million). All turnover and operating profit are derived from continuing operations. The Retail division operates in the United Kingdom and the Republic of Ireland. The European Property division operates mainly in Belgium, Luxembourg, Germany and France. Freeserve operates in the United Kingdom as an internet service provider and portal. There were no material exports from the locations in which the Group operates. The Retail exceptional item for the 28 weeks ended 13 November 1999 includes a charge of £1.6 million (28 weeks ended 14 November 1998 £1.7 million, 52 weeks ended 1 May 1999 £3.0 million) for the cost of ensuring that the Group’s computer and other operating systems are able to function effectively in the Year 2000 and beyond. The 1998/99 Retail exceptional items also include a charge of £10.3 million for the post-acquisition integration of the retail business of Seeboard plc with the Retail division. A further £3.3 million exceptional charge has been incurred on additional integration costs of prior years’ acquisitions. 3 Exceptional profit on partial sales of subsidiaries On 26 July 1999 the Group made an Initial Public Offering of a minority interest in Freeserve plc and on 2 August 1999 Freeserve plc was admitted to the London Stock Exchange and Nasdaq. Net proceeds of £242.2 million were received after deducting all issue costs, flotation fees, expenses and marketing costs. A consolidated net gain of £219.3 million arises after deduction of minority interests. A further consolidated net gain of £1.1 million arose on the deemed disposal in respect of shares issued by Freeserve plc as part of the purchase consideration for Babyworld.com Limited acquired on 6 August 1999. As at 13 November 1999 Dixons Group plc owned 80.04% of the issued share capital of Freeserve. In the 52 weeks ended 1 May 1999 an exceptional credit of £7.5 million was recognised in respect of further consideration receivable on the sale of 40% of The Link Stores Limited in 1997/98. 6 Dividends Per Ordinary share Special interim of 7.5 pence paid (1998/99 nil) 36.3 - - Interim of 4.2 pence proposed (1998/99 3.5 pence) 20.3 15.1 15.1 Final for 1998/99 of 11.8 pence paid 51.2 Ordinary dividends paid and proposed 56.6 15.1 66.3 Preference dividends paid 2.2 4.7 8.9 58.8 19.8 75.2 As a result of the conversion of the Preference shares into Ordinary shares the Preference dividend paid on 31 July 1999 will be the final such payment. 7 Earnings per Ordinary share 28 weeks 1999/00 £million 28 weeks 1999/00 £million 28 weeks 1998/99 £million 28 weeks 1998/99 £million 52 weeks 1998/99 £million 52 weeks 1998/99 £million Profit for the period 279.0 54.7 186.2 Preference dividends (2.2) (4.7) (8.9) Basic earnings 276.8 50.0 177.3 Preference dividends 2.2 4.7 8.9 Diluted earnings 279.0 54.7 186.2 million million million Basic weighted average number of shares 439.8 431.0 431.7 4 Net interest 28 weeks 1999/00 £million 28 weeks 1998/99 £million 52 weeks 1998/99 £million Convertible Preference shares 42.2 47.3 47.3 Employee share options and incentive schemes 9.8 3.7 8.8 Diluted weighted average number of shares 491.8 482.0 487.8 Interest receivable and similar income 26.4 22.8 44.5 Interest payable (10.6) (9.8) (18.4) 15.8 13.0 26.1 Interest capitalised 0.3 1.3 2.0 5 Taxation on profit on ordinary activities 16.1 14.3 28.1 The taxation charge on profit on ordinary activities before exceptional items is based on the estimated effective rate of taxation of 23.4 per cent for the 52 weeks ending 29 April 2000. There is an exceptional tax credit of £0.7 million in respect of the charges for Year 2000 costs and integration costs. pence pence pence Basic earnings per Ordinary share 62.9 11.6 41.1 Exceptional items, net of taxation (49.1) 2.1 0.6 Adjusted basic earnings per Ordinary share 13.8 13.7 41.7 Diluted earnings per Ordinary share 56.7 11.3 38.2 Exceptional items, net of taxation (43.9) 1.9 0.5 Adjusted diluted earnings per Ordinary share 12.8 13.2 38.7 Adjusted earnings per Ordinary share exclude exceptional items. 10 Dixons Group plc Dixons Group plc 11
Page 1 and 2: THANK YOU FOR SHOPPING WITH US BR A
Page 3 and 4: Chairman’s Statement Results and
Page 5: Consolidated Profit and Loss Accoun
Page 9 and 10: Notes to the Interim Financial Repo

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