Investors

The actions we have taken over the last two years have removed a number of significant barriers to progress and underpin our more disciplined approach to capital allocation.

As we adapt to ensure we deliver on our objective to be the best multichannel retailer for our customers, we are realistic in our approach to growth and returns. We can therefore offer clarity to shareholders about how we intend to deliver an appropriate balance of growth and returns in the years ahead.

We are managing the business in order to:

• Generate positive free cash flow
• Ensure a disciplined allocation of capital within a range of 3.5% to 4% of sales
• Maintain a strong investment grade credit rating

We are therefore allocating our capital to achieve three clear priorities:

1. Continuing to invest in a strong UK business
2. Establishing multichannel leadership in all of our markets
3. Pursuing disciplined international growth

This means that, in the current economic environment, investors can expect us to deliver:

• Mid-single digit trading profit growth
• Return on capital employed within a range of 12% to 15%
• Dividend growth, broadly in line with underlying earnings*, with a target cover of more than 2 times

Our approach to growth and returns

We will update on our progress in the context of these objectives as part of our future results announcements.

• *We will adjust for the impact of reduced property profits from the scaling back of our sale and leaseback programme in this context.