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Investor and Analyst Day

Stockholm, Skeppsholmen

16 June 2015

Sebastian James Group Chief Executive

Welcome and agenda

1. Introduction and Dixons Carphone update Sebastian James

2. Programme for the day Jaan-Ivar Semlitsch

3. Elkjøp overview and market background Jaan-Ivar Semlitsch

4. Elkjøp performance and key initiatives Jaan-Ivar Semlitsch

5. Sweden Niclas Eriksson i. Overview ii. Integration iii. Store tour locations

6. Q & A

Recap of full year 2014/15 trading

• Group like-for-like revenue increase of 6% • UK&I: 8% • Nordics: 4%

• PBT earnings guided to be slightly above the top end of guidance range £355m to

£375m

• Integration on track

• CWS development encouraging

• MVNO launched in the UK and soon to launch in Ireland

Good progress against strategic value drivers

Core business Core businessopportunities

Synergies Connected World Services Services

• New propositions to be trialled this year

• Shift of repair activities to central location

• New structure in place

• Apple deployment in Canada live in next few weeks

• UK performing well • Filling pipeline

• Market share gains in all key markets in all categories

• Capture of more than fair share of P4U

• NPS / Advocacy scores at all time record high

• Price vs market at most competitive ever in UK

• Progress on competitive initiatives • Warranty, price,

delivery, online

• Launch of UK MVNO • Irish capacity

MVNO to launch shortly

• Disposals of German and Dutch businesses

• Launched 3-in-1 trials to determine end-state property portfolio

• Multi-play propositions launching late summer

• 237 SWAS stores opened (of which 100 full CPW executions) • 4 more per week • Trading

encouraging • Nordics co-branded

stores • H/O building work

underway • Sweden complete • UK move in

October • UK Warehouse /

repair integration announced

• Key structures built • Consultations

underway

Steve Moore Director of Connected Home

PLACEHOLDER: STEVE MOORE SLIDE

Page 7

The year ahead

• Further market share gains • Own The Kitchen rollout • Phone initiatives

• Soft credit check • iD

• Infrastructure • IT

• Property portfolio • CWS rollout • Market backdrop:

• BT / EE • O2 / 3

• Multi-play

Introducing the Nordics team

Today

• Focus on Nordics

• Access all areas

• Complex logistics

• Nice people

Jaan Ivar Semlitsch CEO Elkjøp Nordics region

Programme for the day

• Now to 10:30: Presentations from Jaan-Ivar and Niclas • 10:45: Travel to the Kungens Kurva Big Box Elgiganten store

• 12:30 to 13:15: Scandinavian style lunch

• 13:30 to 15:00: Group splits - visits to the Nacka Phone House

store and the Liljeholmen Elgiganten Phone House store

• 15:30: Travel to airport

Welcome and agenda






6. Q & A

Market structures by country

Population Currency Land area Market size Elkjøp sales # Stores Market share

Market growth

Competitive environment

Norway

5.1mn NOK 385,000km2 28bn NOK 10bn NOK Own = 80 35% M

£816mn Franchise = 61

Sweden

9.7mn SEK 450,000km2 40bn NOK 9bn NOK Own = 131 23% H


Denmark

5.7mn DNK 43,000km2 19bn NOK 5bn NOK Own = 29 27% M


Finland 5.5mn €URO 338,000km2 15bn NOK 4bn NOK Own = 21 25% H


Elkjøp has 12 franchise stores in Iceland, Faroe Islands and Greenland with total sales of ~150mn NOK. The competitive environment in these markets is considered low.

Macro environments in Nordics

Currency: NOK / EURO

Oil price

1

2

SWEDEN •Sustained consumer spending and more benign prospects for exports •Riksbank to keep SEK weak near term •Inflation up, but will not reach 2% target

NORWAY •Oil driven weakness in Norwegian economy •Norges Bank may be forced to cut its rate sharply •Soft landing thanks to expansionary monetary and fiscal policies. Oil prices likely to increase gradually •Low labour supply growth dampens uptrend in unemployment

DENMARK •After some sluggish years the Danish economy has returned to growth •Consumer spending breaks vicious circle •Inflation briefly in negative territory •Risk of new bubbles in two-tier housing market

FINLAND •Need for a highly expansionary monetary policy •The Finnish economy has bottomed out •Euro movements are benefitting Finland only in part •Cheaper oil provides temporary support this year •Private investment is at the same level as in 1999

Competitive landscape variable by market

Market share in Nordics

Key

characteristics

Key product categories

- Small and medium sized stores

- Own and franchise stores

- Online player - Medium sized stores

- Extremely strong in sales of insurance and credit sales

- Ownership of Net-on-Net

- Own stores

- Large stores

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

- Own stores

- Small and medium sized stores

- Own stores

- 40% owned by Elkjøp Nordic

- MDA

- CE

- Computing

- Computer accessories

- Computing

- Telecom

- Photo

- MDA

- CE

- Computing

- Telecom

- Photo

- Audio/Video

- Entertainment

- Online player

- Owned by Siba-Group

- Computing

- Telecom

- Photo

- Audio/ Video

- MDA

- SDA

7% 4% 2% 4% 2% 2%

- Small, medium and large sized stores

- Own and franchise stores

- Audio/Video

- MDA

- SDA

- Computing

- Telecom

- Kitchen

27% ~ 1 %

- Online player

- MDA

2%

- Online player

- Computing

- Telecom

Nordics at a glance

Elkjøp group Phone House Total

Sales 2013/14 28bn NOK 1bn NOK 29bn NOK

Customers visiting stores 67mn 4mn 71mn

Customers visiting website 186mn 5mn 191mn

Colleagues ~ 8,000 ~ 350 ~ 8,350

Stores – Total (own/franchise) 298 (178/120) 93 (83/10) 391 (261/130)

2014/15 LFL revenue growth +4.2% +2.4% +4.2%

Elkjøp operating model

Elkjøp group

Elgiganten Sweden

Elkjøp Norway

Elgiganten Denmark

Gigantti Finland

Jonköping warehouse, repair

All franchise countries

• Strategy • Buying and marketing • Finance • Core HR • Wholesale • eCommerce • Property and shops

• Logistics • Trunking • Home delivery • Repair

• Retail support • Account management • Recruitment of new

franchises

• Management • Assortment planning • Retail management • Local proposition

Key elements of Nordics operating model

• Centralised purchasing

• High sales densities

• Key supplier relationships

• Higher marketing %

• Total customer focus

• Flexible model • Sales focus • Culture and

training

• 18% costs to sales • Simplified business

strategy • Devolved decision making • Cross-border synergies

Market Leadership Retail Excellence Low Cost

Welcome and agenda






6. Q & A

Elkjøp Nordics has enjoyed a strong growth rate

Revenue in bn NOK and 5 year CAGR

+9% 27.9

13/14 12/13

24.9

11/12

22.7

10/11

21.2

09/10

19.8

Elkjøp Nordics market shares increasing in all territories and categories

SDA** 102

108

MDA* 93

105

Audio/video* 100

107

Telecom* 90

109

Computing* 108

107

Market index Elkjøp index

93

105

107

108

102

112

98

110

99

104

103

96

99

99

124

99

99

96

105

116

96

107

103

109

107

109

97

101

96

106

* Market share in units. ** Market share in value.

2014

Norway Sweden Denmark Finland

Note: Data displayed in the charts based on market research, supplier and company estimates

Page 22

Customer Service at record highs

Norway Sweden

Denmark Finland

July 14 May 15 July 14 May 15

July 14 May 15 July 14 May 15

%

Very positive Positive Negative Very negative

%

% %

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

74% 80%

69% 75%

67% 74%

69% 74%

Price competitiveness very strong, but still work to do

Norway Sweden

Denmark Finland

93%

95%

97%

99%

101%

103%

105%

W21 W22 W23 W24

93%

95%

97%

99%

101%

103%

105%

W21 W22 W23 W24

93%

95%

97%

99%

101%

103%

105%

W21 W22 W23 W2493%

95%

97%

99%

101%

103%

105%

W21 W22 W23 W24

Country overview: Norway

• Elkjøp market leader in all major cities with Lefdal as number 3

• Strong brand awareness

• With Lefdal we capture additional revenues and customers

10.000

8.000

6.000

4.000

2.000

0

8.589

mn NOK / CAGR +3%

13/14

9.662

12/13

9.682

11/12

9.130

10/11

8.812

09/10

Elkjøp Lefdal

Market overview Own Franchise

100% = 28bn NOK

141 Total # of

stores

27%

Komplett

44%

6%

Net on Net

2%

Elkjøp

Others

Expert 13%

Lefdal

8% 2

59

20

23

37

Country overview: Sweden

Market overview Own Franchise

100% = 45bn NOK

10

29

83

48

170 Total # of

stores

Phone House

Others 35%

3%

Siba

4%

Elon

6%

Net on Net

8% Dustin

11%

MediaMarkt 13%

Elgiganten

20%

• Elgiganten market leader in Sweden

• Strong brand awareness

• High growth opportunities through consolidation

8.000

6.000

4.000

2.000

0

10.000

7.933

11/12

7.300

10/11

7.354

09/10

mn NOK / CAGR

+9%

13/14

9.066

12/13

6.395

PH Elgiganten

Country overview: Denmark

Market overview

Fona

11%

11%

Expert

27%

Elgiganten

Wupti

Computer City

Whiteaway/

Skousen Bilka

32%

Others

4%

11%

2%

2%

29

29 Total # of

stores

2.000

4.000

0

6.000

3.000

1.000

5.000

13/14

+12% 5.261

12/13

4.987

11/12

4.247

10/11

3.600

09/10

3.325

mn NOK / CAGR

Elgiganten • Market leader in Denmark

• #1 out-of-town mixed electrical specialist

• Very positive trend

100% = 19bn NOK

Country overview: Finland

Market overview

• Market leader

• Extremely strong brand

• Low price profile

• Strong growth despite difficult macro environment

4.000

2.000

0

3.000

1.000

mn NOK / CAGR +9%

13/14

3.866

12/13

3.329

11/12

3.070

10/11

2.862

09/10

2.723

Gigantti

2%

Tekniset

Expert

26%

Veikon Kone 3%

14%

Hypermarkets

5%

Musta Pörssi

Others

Verkkokauppa

12%

Gigantti

13%

25%

18

21 39 Total # of

stores

Own Franchise

100% = 15bn NOK

Key initiatives

• Omni-channel roadmap

• KNOWHOW • Jönköping warehouse • Private Label • IT

• Kitchen • Fona distribution • Market consolidation • B2B • Co-branded store

rollout

• Head Office • Cost reduction • Co-branding • Scale benefits

Core Business Core Business Opportunities

Synergies

Omni-channel is on track

Online development Opportunities

• B2B

• Enhanced payment

• Omni-channel

• In-store navigation

• In-store online/offline integration

• Larger product range/availability

• Big data analytics and insight

• Ship from store

• Enhanced delivery 0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Sales SOB%

CAGR 16,8%

KNOWHOW concept is fully rolled out in phase 1

• Home delivery • Heat pump installation • TV installation • Home cinema

installation • MDA installation w/

and w/o plumber • Kitchen mount 3-part

• Remote fix • PC support @ home • TV support @ home • Computer health

check • Support agreement

data • Support agreement

mobile

• Data recovery HDD • Data recovery SD/ memory stick • Data erase • Cloud unlimited no. of

devices • Mobile security pack • Whatever happens

• Computer ready to go • iPad/tablet ready to

go • Mobile ready to go • TV ready to go • GPS ready to go • Computer ready to go • Safe mobile phone

KNOWHOW is going well - with lots of potential

1.5mn Number of repairs

annually

94.5 Tons of waste

collected

2.3mn Number of home

deliveries sold

236k Number of computer

services sold annually

130k Number of mobile

phone services sold annually

773k Number of insurance

products sold annually

Focus on @home

Same offer in all channels

Using NDC as part of service

offering

Marketing of KNOWHOW

Full roll out

Short term

• Helping the customer where the product will be used

• Build solid range of home installation services

• Selling services online and via contact centres

• Economies of scale to reduce costs and increase efficiency

• Shout about our great offer • Use physical stores as an

advantage vs online players • Strengthen solution provider

• Own stores in Sweden and Finland

• Franchise in Norway, Sweden and Finland

Long term

Use KNOWHOW to generate

footfall

SHOWHOW

Bringing solutions to

the customer

Modern technology

available

Brand visible in the market

• Natural meeting point for customers with tech issues

• Place to go to get all technology working

• Educational material and demonstrations

• Seamless support in store and @home

• Getting everything to work for the customers, no matter where bought

• 3D-printing in store • Customisation of peripherals

• Commercially visible • Strengthening Elkjøp’s brand • Installation companies branded • CRM activities on most AVS

Performance Future opportunities

NDC = Jönköping

Jönköping project is on track

Current Future Change

95,000m2 107,000m2 +13 %

63,000 orders/day 110,000 orders/day +75%

27,000 pallet locations 57,000 pallet locations +111%

52 SEK/order line 40 SEK/order line -23%

SKU capacity: 8,000 SKU capacity: 19,000 +138%

Building the most advanced small box operation in Europe to support future multi-channel growth

Private Label development very strong

14/15

Turnover

Private Label

Nordics

+65%

13/14 12/13

Share of total

revenue

Best

Better

Good

EPP 2% 3% 5%

CAGR

Kitchen is a platform for future growth

+614%

2013/14 2014/15 2012/13 2011/12 2010/11

Share of total

revenue

CAGR

0% 0.3% 0.7% 0.8% 1.1%

Kitchen initiatives will drive market share

Under development Opportunities

• Smart Home

• Increase market share of integrated products

• Increase range of accessories

• Continue to develop after sales support

• Brand awareness and branding centralised

• Extend range

• In-store inspiration

• Cross category benefits

• New marketing platform

New drawing tool

• Improved quality and customer service

Smart kitchen • Speakers • SDA defined

range • Tablets and

integration in kitchen

B2B an exciting opportunity

Stores

Buying and volume

Logistics

Strong brand

Store network to reinforce B2B focus • Locations • Wide range of products and services

High volume in most categories gives cost advantages • High volume reduces per visit cost • Buying terms and contacts

Logistics model and state of the art warehouse • Well organised central structure • Local adaptation and flexible • Low cost

Strong brand • Good perception among people • Linked to technology services • KNOWHOW concept

1.4

1.1

bn NOK

14/15

+22%

13/14

Nordics summary

• Number one position in all markets

• The only true pan-Nordic player

• Successful operating model

• Market leadership

• Retail excellence

• Low cost

• Strong price perception, and customer satisfaction is at an all-time high

• Key initiatives to support our leadership position

• Core business

• Opportunities

• Synergies

Welcome and agenda






6. Q & A

Niclas Eriksson Chain Manager Elgiganten Sweden

Good YoY revenue performance

Store

4%

Online

16%

Phone

10%

13/14 14/15 13/14 14/15 13/14 14/15

What is your preferred consumer electronic retailing brand?

Strong customer position

Top 10 retail brands in Sweden 2014 (last year’s position in brackets)

1.(1) Ikea

2.(2) Clas Ohlson

3.(6) Apoteket

4.(5) Elgiganten

5.(3) Maxi Ica Stormarked

6.(25) Stadium

7.(4) Systembolaget

8.(7) ÕoB

9.(14) Akademibokhandeln

10.(15) Kjell & Company

0%

5%

10%

15%

20%

25%

30%

35%

40%

Elgiganten

Media Markt

Onoff

Siba

NetOnNet

Elon

2011 2014

Phone House small boxes as part of future offer

Generalist Specialist

Destination

Drop-in

Encouraging early results

Revenue index pilot GM index pilot

Footfall index pilot Revenue accessories index pilot

+47

Reference

Skärholmen

Solna

Liljeholmen

+55

Reference

Skärholmen

Solna

Liljeholmen

+33

Reference

Skärholmen

Solna

Liljeholmen

+48

Reference

Skärholmen

Solna

Liljeholmen

Synergy benefits

B2B revenues B2C services

Incremental connectivity revenues

Brand and channels

Buying & logistics savings

Integration cost savings

FY 14/15 FY 15/16 FY 16/17

• One back office from June 3rd 2015

• Successful trial period rebranding 3 Phone House stores to Elgiganten Phone House

• Shared back office systems – expected during autumn 2015

• Rebranding small box portfolio – 62 stores in 10 weeks this September

• SWAS trial

3 store visits

1. Elgiganten Kungens Kurva

2. Phone House Nacka forum

3. Elgiganten Phone House Liljeholmen

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