Newark 16th March 2016

Growing the UK’s leading technology support business

Timetable

All

10:15 Introduction from Sebastian James and Andrew Harrison

10:30 Presentation from Andrew Lawley, John Hunter and Anabel Hoult, followed by Q&A

Split into Groups:

Groups 1, 2 & 3 Groups 4, 5 & 6

11:45 Tour of Small Products Warehouse 11:45 Travel to Building 1

12:30 Lunch (Gilstrap & Gladstone Room) 11:55 Tour of Repair Centre

13:00 Travel to Building 1 12:40 Travel to Building 2

13:10 Tour of Repair Centre 12:50 Lunch (Gilstrap & Gladstone Room)

13:55 Travel to Building 2 13:20 Tour of Small Products Warehouse

All

14:15 Wrap up from Sebastian James

14:30 Depart Newark

2

Recap of post-merger value drivers M

ark

et ca

p

Core business Core business opportunities Synergies Connected World Services Services

Core Services Synergies

Knowhow

3

Recap of post-merger value drivers – making great progress

Core business Core business

opportunities

Synergies Connected

World Services

Knowhow

Customer satisfaction at all-time

high

UK pricing most competitive ever

3-in-1 rollout

Greece profitable

New categories

Exit loss-makers

Consolidation opportunities

iD MVNO

Property optimisation

271 UK&I SWAS

Nordics

HO integration in UK,

Ireland and Sweden

Repairs integration completed

Key organisational

structures in place

Earlier than planned

Full rollout of Sprint

Contract signed to provide EE with

mobile phone insurance services

Extension of existing agreement

with a major handset manufacturer

in the US to provide T-Mobile and

Sprint activations

New agreement with TalkTalk for

distribution of broadband and TV

services and hardware

Focus of the day

4

• The last 12 months

– We have been understanding the opportunity in technology services

– There is already a huge market for supporting tech that goes wrong

– It is fragmented today, but big and growing in size

• As technology failure moves from inconvenience to calamity

– We already have an infrastructure that will surprise many

– But it is a hidden gem and needs polishing, ready for the next phase

– We will be the UK’s Digital Leader in Technology Support

• Creating a new long-term growth story for Dixons Carphone

Growing the UK’s leading technology support business

5 5

There is a significant and growing services market…

8m Mobile repairs p.a.

50% TVs connected

to the internet

6m Computers

repaired p.a.

82% Households have

broadband

4.5m Broadband / TV

switches p.a.

25% Adult population insure

their gadgets

Sources: Gartner, Ofcom, DC estimates

6

£5bn addressable services market, supported by a continued increase in connected devices

We estimate 10% market share in aggregate

White goods

£0.7bn

Computing

£2.3bn

Mobile devices

£1.5bn

TV

£0.5bn

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

0

2

4

6

8

10

12

14

16

2014 2015 2016 2020

Installed Base and Spend on Connected Devices

Volume of devices Spend on devices

Sources: Gartner Symposium/ITxpo, Nov 2015

$bn m units £mn

7

The UK technology support market is poorly served today

High street

sole traders and

local tradesmen e.g. Pimlico Plumbers

Friends

and

Family

Retailers e.g. John Lewis,

AO, Argos Warranty

providers e.g. D&G

Utilities e.g. British Gas

Peer-to-peer

platform

Telcos e.g. BT/EE

Tech players e.g. Apple, Google

Manufacturers

e.g. Bosch, Miele

8

There is an increasing number of players interested in this space…

A number of

interested entrants

moving out from

core categories

DA

TA

CO

NT

EN

T

BR

OA

DB

AN

D

FIX

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MO

BIL

E

TE

CH

AN

D C

E

TV

WH

ITE

GO

OD

S

EN

ER

GY

SW

ITC

HIN

G

LIG

HT

ING

HE

AT

ING

EN

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GY

SE

CU

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…however Dixons Carphone is advantaged in both distribution and services delivery 9

The customer need is building…

Technology is becoming increasingly complicated

• Relentless innovation

• Increasing penetration of connectivity

• Interoperability of different ecosystems

Customers are now more dependent on keeping their technology working

• Average UK consumer owns 3.3 connected devices, up 10% in 2015

• 85% of consumers are online at least once per day – entertainment, finances, keeping in touch

• 71% of UK consumers own a smartphone, vs. 61% average in Europe

10

Technology and its connectivity are now essential … but solutions are not always at hand

Everything is evolving, it's

getting more and more

complicated, and the

majority of times you can't

fix it yourself

Technology is an

essential part of my life,

I'm using it all the time

Our broadband stopped working

for 24 hours, I coped but my 13

year old didn't. It became apparent

to me how much she relies on it.

24 hours was far too long to wait,

we reached crisis point

You can try searching online, or hope

you might know someone who can

recommend someone. Otherwise I

don't really know where to start

I cracked the screen on my phone and

they said they'd send me a new one. So I

had to spend hours downloading and

transferring all my stuff. There's a

missing link to find someone who will

actually fix things

If something goes wrong you

have to go online, look up

your local area, who does

washing machine repairs. It's

all a bit hit and miss

Wi-Fi has become more and

more important in my house, if

it went down I’d have a very

unhappy family

Sources: CSR, Qualitative research programme, Brand strategy Dev Nov/Dec 2015

Customers ranging from 25-70, London, Birmingham, Edinburgh, Dublin, Belfast, Manchester

My kids do think the internet is the most

important thing, nothing else matters, for

me it’s the car and the washing machine

as it’s constantly on

11

We are already the UK’s #1 technology support business

12

Building from strength…

DC capabilities provide true competitive advantage:

− Leading share in the sale of connected technology

through significant multichannel presence

− Strong manufacturer and supplier relationships and

cross ecosystem approach

− Europe’s largest tech and white goods repair capability

− More technical support agents than any other business

− Complex business to replicate

− Nationwide coverage

Source: DC analysis

700k

mobile

repairs p.a.

740k

computer

repairs p.a.

500k+

engineer

home visits

p.a.

600+

skilled

engineers

4.2m home

visits p.a.

1,500

in-store

service

colleagues

100k+ gas

installs p.a.

11m

warranty

and

insurance

policies 33.5m km

driven p.a.

Samsung,

Apple, Toshiba,

Sony and

Lenovo

accreditation

13

Delivering the vision – Progress to date

Team Commercial

Model Channels

Service Delivery

Brand

- Senior team

- Operating model

– Comprehensive

customer research

– Brand strategy

– Proposition architecture

– Refreshed identity

– Defined new

commercial model

– New and innovative

propositions

– Customer acquisition

strategy

– Partner and affiliates

strategy

– Digitalised service

delivery

– Agile approach

14

A new leadership team has been appointed Team Commercial

Model Channels

Service Delivery

Brand

Group Strategy Director Andrew Lawley

Strategy & M&A Elizabeth Brown

Commercial John Hunter

Service Delivery Anabel Hoult

Marketing Louise English

Finance Marcus Roy

HR Graeme Clarke

• Proposition

development

• Commercial strategy

• Channels to market

• Partnerships

• Omni-channel

• Contact centres

• In home and field

• Repairs Hub

• Regulation

• IT

• M&A

• Strategy

• Integration

• Finance

• Budgets

• Capital planning

• People

• Culture

• L&D

• Brand strategy &

development

• Insight

• Marketing all

channels

• CRM

15

New commercial model with refreshed and innovative propositions…

My

Knowhow

Connect it

Protect it

Upgrade it

Fix it

Learn it Manage it Home switching:

Finding the right broadband

and TV supplier

Trade in and value chain:

Trade in all devices

Always working:

Accessible and convenient

hardware repairs, software

fixes and connectivity solutions

Knowledge vault:

Storing manuals, helpful hints

and tips for your devices

Home connectivity:

Optimising home network

Care plans and insurance:

Offering on going device protection

and technology support service

My Knowhow: Digital membership

Team Commercial

Model Channels

Service Delivery

Brand

16

A range of revenue models centred around digital membership

Team Commercial

Model Channels

Service Delivery

Brand

My

Knowhow

Connect it

Protect it

Upgrade it

Fix it

Learn it Manage it

One-off Switching + hardware margin

+ subscription

Switching margin

+ subscription

One-off / subscription

One-off

Subscription

Digital membership

17

Customer acquisition via our distribution scale

Awareness

Tens of

millions of

products sold

Store / online

visits

1.5m repairs and

2m tech support calls p.a.

My Knowhow

sign-ups

My Knowhow customer

subscription

11m existing base:

warranty + insurance

Ongoing

relationship

Footfall to over

1,000 stores

4.2m home visits

p.a.

• E-receipt

• Delivery tracking

• Installation

• Policy documents

• Warranty registrations

Product

purchase

My Knowhow

customer event

• Repair

• Technology support

• Home network optimisation

Customers

Team Commercial

Model Channels

Service Delivery

Brand

Source: DC analysis

18

Generating additional revenue from new and existing channels…

Channel Objective Outcome Examples

Retail Deliver volume and engagement

with the new services business

Increase service sales in life,

delivering incremental profit, reduced

cost to serve, creating cost saving

Direct to

consumer

Deliver incremental customer

volume through low cost

digital channels

Incremental customers and profit

Partnerships

Deliver new partnerships

to create mutual value Additional customers and scale Banks, Utilities, ISP, Mobile networks

Team Commercial

Model Channels

Service Delivery

Brand

19

Field Operations Contact Centre

Repairs Hub

Investing in a frictionless digital service Team Commercial

Model Channels

Service Delivery

Brand

Stores

Service Design

• Digital first

• Responsive

• Accessible

• Convenient

• Personalised

• Omni-channel

20

My Knowhow

You can try searching online, or hope

you might know someone who can

recommend someone. Otherwise I

don't really know where to start

My usage:

- Cost

- Speeds

- Savings

My Knowhow

- My products

- My agreements

- My local store

Diagnosis, booking

and tracking

Team Commercial

Model Channels

Service Delivery

Brand

Manage it

Protect it

Upgrade it

Learn it

Connect it

Joanne Smith

Fix it

My Knowhow

21

simple view of products

purchased or registered customer identifies problem

or ‘pushes button’

digital self-help enables

triage and routing

remote agent has all

details at their fingertips

Team Commercial

Model Channels

Service Delivery

Brand Fix it

22

personalised internet

speed test

highly scientific

home network test

overall view

feed into automated

switching service

if external connection

is the bottleneck

book remote or home

visit - supply

equipment or provide

technical advice

if home network is

limiting performance

Team Commercial

Model Channels

Service Delivery

Brand Connect it

23

Start building digital

platform

Reorganising the

business

Finalising teams

Next steps

24

Q1 Q2 Q3 Q4

Launch of service

development region in

Leeds

Nationwide rollout and

brand re-launch

Pilot iteration

Monitoring and

iterating

FY1617

In summary

• Big ambition

• Large and underserved market

• Building from scale, with competitive advantage

• Moving at pace

• Incremental revenue and earnings growth

25

Q&A