Dixons Group plc - The Dixons Stores Group Image Server

Dixons Group plc
Interim statement 2000/2001

Adding value
Our business is about adding value: shareholder value, customer value, brand value.
We add value to our businesses by continual innovation in the creation of new brands and concepts, by
being the first with the latest, most exciting new technologies at the best prices, by offering expert
comprehensive service, by continually improving the efficiency of our operations and by selecting the best
sites for our stores, the best manufacturers for our products and the best staff.
Contents
Financial highlights 1
Chairman’s statement 2
Consolidated profit and loss account 6
Statement of total recognised gains and losses 7
Consolidated balance sheet 8
Consolidated cash flow statement 9
Notes to the interim financial report 10
Retail sales analysis and store data 18
General information 19

Dixons Group plc 1
Financial
highlights
• Group turnover (excluding Freeserve) increased by 27% to £2.2 billion (1999/00 £1.7 billion), up 4 % like for like
• Underlying operating profit (before exceptional items and Freeserve losses) £93.1 million (£77.8 million), an increase of
20%, largely reflecting a strong performance from the new international businesses
• Underlying profit before tax (before exceptional items and Freeserve losses) £90.8 million (1999/00 £92.5 million)
• Interim dividend of 1.25 pence per ordinary share (1.05 pence), an increase of 19 %
• International operations in 12 countries contributed around 25% of operating profits
• Shortly after the half-year end, a recommended offer for Freeserve by Wanadoo was announced. As at 8 January 2001,
this values Dixons shareholding in Freeserve at over £880 million
• Retail sales for 8 weeks to 6 January 2001 up 19%; 6% like for like

2 Dixons Group plc
Chairman’s
Statement
Results and dividends
Group turnover (excluding Freeserve) for the 28
weeks ended 11 November 2000 increased by
27% to £2.2 billion (1999/00 £1.7 billion),
reflecting continued strong growth in the UK
and the inclusion of our recently acquired
international retail businesses. Like for like
sales across the Group were ahead 4%.
Underlying operating profit (before exceptional
items and Freeserve losses) grew by 20% to
£93.1 million (£77.8 million). Interest payable,
excluding Freeserve, was £2.3 million against
interest receivable of £14.7 million in the first
half of 1999/00. The reduction resulted
principally from the acquisition for cash of
Elkjøp and Ei System, and the return of
approximately £160 million to shareholders in
the second half of last year.
Underlying profit before tax (before exceptional
items and Freeserve losses) for the first half was
£90.8 million (£92.5 million). Adjusted diluted
earnings per ordinary share were 3.4 pence
(3.5 pence).
Including Freeserve and exceptional items,
profit before tax was £51.9 million, compared to
£299.4 million in the prior year. The prior year
figure reflects an exceptional profit of £219
million recognised on the flotation of Freeserve.
In the current year, the net exceptional charge
of £2.1 million comprises a charge of £9.7
million relating to the restructuring of the
Group’s store portfolio and service operations,
partially offset by a credit of £7.6 million on the
issue of additional shares by Freeserve.
The directors have declared an interim dividend
of 1.25 pence per ordinary share (1.05 pence),
an increase of 19%, payable on 5 March 2001
to shareholders registered on 2 February 2001.
UK retail
The UK Retail division made an operating profit
before exceptional items of £74.2 million
(£73.5 million), an increase of 1%. Total sales in
the period increased by 11% to £1,845 million
(£1,656 million), with like for like sales 2.3%
higher than in the first 28 weeks of 1999/00.
Underlying gross margins continued at a similar
level to the second half of last year, although
this, as anticipated, represented a year on year
decline of 1.3 percentage points of gross
margin. The division improved cost to sales
ratios by a further 0.9 percentage points,

thereby offsetting most of the margin pressure
and providing an increase in profit against
demanding comparatives.
The markets in which the UK Retail division
operates grew in value by 2%, with some of our
markets slowing in autumn, reflecting weaker
consumer confidence following the petrol crisis
and floods. The brown goods market was
strong, with growth in new technologies, such
as widescreen TV and DVD being partially offset
by a further decline in the games market ahead
of the launch of the new generation of games
consoles. The PC market was weaker,
although those for laptop and portable PCs
grew. The domestic appliance market grew
slightly. The mobile phone market continued to
expand against strong sales last year. The UK
Retail division gained further market share, with
all brands recording increases.
Dixons sales, at £378 million (£361 million),
were up 5% overall and 2% like for like. Good
sales growth was achieved in laptop PCs and
digital cameras and camcorders, although the
games market had another difficult period
ahead of the launch of PlayStation 2. Sixty-one
stores were converted to the new Dixons 21
concept, which facilitates self-selection of lower
ticket products, thereby releasing sales staff to
help customers purchasing more complex, new
technology products. This new format has
proved successful, providing both improved
sales and better cost ratios. Further
conversions are planned. Three new stores
were opened in the period and a further 3 were
re-sited. Thirteen smaller stores were either
closed or converted to The Link.
Currys sales were £705 million (£685 million), an
increase of 3% in total, although 2% lower on a
like for like basis. Six new Currys Marketplace
stores were opened, offering greater selfservice
on smaller ticket items, with increased
availability of take-away stock. This concept is
being further developed and many of its
features are being incorporated into existing
stores. In total, 15 stores were opened or resited,
including the UK’s largest electrical
superstore of 55,000 square feet near
Birmingham.
The period saw the introduction of a number of
other changes at Currys. New advertising that
emphasised that Currys was ‘Britain’s Biggest
for Low Prices’ was introduced. This was
reinforced by a team of independent
researchers checking Currys prices against
competitors on a weekly basis and by a
programme of aggressive price promotions on
a wide range of products.The changes being
made to Currys have been positive. Although
somewhat disruptive in the short-term, they will
provide long-term benefits.
PC World sales grew by 22% to £546 million.
Like for like sales increased by 5%. Despite a
Dixons Group plc 3
4% decline in the PC market, PCs increased
their proportion of total sales. In addition to
providing the latest PC technology at market
beating prices, PC World continues to offer an
unrivalled range of products and level of service.
PC Clinics, which provide a 7-day a week PC
repair and upgrade service, were introduced
into all stores. Among its services, PC
Healthcheck, which checks and optimises the
performance of the customer’s computer, has
proved particularly popular. In addition to many
other problems found, computer viruses have
been discovered and treated on 25% of PCs
receiving a Healthcheck.
Ten new PC World Superstores were opened in
the first half, bringing the total number of stores
to 91. A further six stores are expected to open
in the second half of this financial year.
PC World Business continued to achieve strong
growth in a difficult business market with sales
up 44% at £77 million (including internet sales).
In the second half of this financial year, PC
World Business will relocate its head office to a
purpose built site near Manchester. It will also
implement new enterprise-wide systems. This
investment will provide a sound base for future
growth and allow the PC World brand to attain
clear leadership in the small and medium sized
business sector, matching its position in the
consumer market.

4 Dixons Group plc
The Link had a very strong period, gaining
market share in an expanding mobile phone
market. Sales were £177 million (£125 million),
an increase of 41% in total and 18 % on a like
for like basis. This sales growth reflects an
increase of 60% in mobile connections, being
partially offset by declining prices in a highly
competitive market. Penetration of mobile
phones in the UK is now estimated to be in
excess of 65%. Increasingly this market’s
performance will be dependent on new
handset designs and the introduction of new
technology, which should increase the use of
mobiles for data communication. The Link, as
the UK’s leading mobile communication
specialist, is in a strong position to capitalise on
these developments.
Twenty-six new stores were opened in the
period, taking the total to 244. The new store
openings included eight stores converted from
Dixons and Currys High Street fascias.
International retail
The International Retail division achieved an
operating profit of £15.7 million (loss £0.4
million) on sales of £283 million. Like for like
sales were ahead by 18%.
The increase in profit was largely attributable to
the inclusion of our Nordic business, Elkjøp,
which was acquired on 29 November 1999.
Elkjøp’s sales in the first half were £250 million,
representing an increase of 20% on a like for
like basis. Elkjøp opened an additional seven
stores, including four more in Sweden and a
further two stores in Finland. During the period
Elkjøp completed the planned sale of Snehvide,
its Danish chain of 33 high street white goods
stores. This will allow Elkjøp to concentrate on
expanding its superstore operations in
Denmark.
Elkjøp is a fast growing retailer with significant
potential for further expansion. A number of
store openings are planned over the next few
years, which will reinforce its market leadership
across the Nordic region.
In Spain, Ei System retail operations also
achieved good growth with like for like sales
ahead by 17%. Sales benefited from an
expansion in product range and more effective
marketing. Shortly after the end of the halfyear,
three of the Madrid stores were refitted
leading to strong sales growth. A number of
new, larger out of town stores are planned in
the next financial year.
Sales in the Republic of Ireland grew by 24% to
£20 million. Like for like sales growth of 4%
was affected by the opening of new stores
within the catchment of the existing store base.
A further two stores are planned to open in the
second half of the current financial year with
further openings thereafter, particularly in
markets outside Dublin.
Internet services
The Group’s Internet Services division
comprises Freeserve and the electronic
commerce activities of our retail brands.
Freeserve has established itself as the UK’s
leading internet brand. An operating loss of £27
million was consolidated in the Group’s results,
on turnover up 319% at £30 million. The
number of active registered users grew to over
2 million, who in aggregate spent 7.8 billion
minutes on-line in the first 28 weeks of the
financial year.
On 6 December 2000, it was announced that
Dixons had reached agreement with the boards
of Wanadoo S.A., a subsidiary of France
Telecom, and Freeserve on the terms of a
recommended share exchange offer for
Freeserve. The offer of 0.225 of a New
Wanadoo Share for each Freeserve share
values Dixons shareholding as at 8 January
2001 at over £880 million. Pursuant to this
offer, the Board of Dixons Group has
undertaken to accept the Wanadoo offer in
relation to the Group’s shareholding in
Freeserve, conditional on the approval of
shareholders at an Extraordinary General
Meeting to be held on 11 January 2001.
Freeserve was launched by the Group in
September 1998 with a total investment of
£240,000. The value realised from Wanadoo’s
offer, together with £120 million previously

ealised from the sale of shares in Freeserve
represents significant shareholder value
creation. While the Group anticipates remaining
a long-term shareholder in Wanadoo, the
transaction provides the Group with significant
flexibility over its investment and enables the
Group to focus resources on further expansion
of its retail businesses.
Turnover from the Group’s e-commerce
activities increased by over 600% to £10.8
million . The strongest growth came from PC
World Business’ e-commerce operations, with
sales increasing by 852% to £5.8 million,
underlining the particular attraction of electronic
commerce to the business-to-business market.
As expected, losses from the Internet Services
division (excluding Freeserve) increased to £4.4
million (£1.6 million), reflecting significant pre
start-up costs relating to new internet
operations for Currys, The Link and PC City, a
new venture in France. Fully transactional web
sites for these brands, backed up by
sophisticated end-to-end product, customer
management and fulfilment systems, were
launched in December. The PC City website will
be complemented by PC superstores in
France, the first of which is expected to open in
the second half of the next financial year.
The Group’s e-commerce operations allow our
customers to shop or browse on the internet in
addition to being able to purchase through
stores or mail order. Experience to date
reinforces our conviction that multi-channel
retailing is the most cost effective business
model and provides the strongest customer
proposition. We believe that our offering and
infrastructure will enable the Group to become
the market leader in on-line retailing as it is
through the traditional channels.
In September, the Group sold @jakarta, a
games specialist, to gameplay plc, in return for
an initial 12.5% shareholding. Gameplay is one
of Europe’s leading gaming companies selling
games software and multi-player gaming on the
internet, interactive TV and mobile phones.
European property
The European Property division had another
strong period with operating profits increasing
by 21% to £7.6 million (£6.3 million) on sales of
£35 million (£39 million). Operating assets
employed were £50.4 million (£61.1 million).
Good progress has been made in Belgium,
France and Luxembourg, where Codic’s
business is now concentrated and where a
number of new projects are planned. The
division continued to manage the level of
property stock tightly in order to limit risk.
Financial position
At the end of the period, the Group had net
funds of £30 million. Excluding amounts held
under trust to fund extended warranty liabilities
Dixons Group plc 5
and funds held by Freeserve, net borrowings
were £359 million (net funds of £403 million).
The reduced level of funds reflects the
acquisition for cash of Elkjøp and Ei System
together with the return to shareholders of
approximately £160 million of cash in the
second half of the last financial year. The Group
continues to invest in expansion and
enhancement of its store portfolio, systems and
support infrastructure with capital expenditure
in the current financial year expected to be in
excess of £200 million.
Christmas trading
In the eight weeks ending 6 January 2001,
Group retail sales increased in total by 19% and
by 6% on a like for like basis. Our international
businesses continued to perform well. In the
UK, sales of mobile phones and digital products
grew strongly. The year on year gross margin
decline experienced in the first half narrowed
significantly over the Christmas period. Gross
margins in the UK Retail division were slightly
lower than last year. We anticipate another
satisfactory year.
Sir Stanley Kalms
Chairman
10 January 2001

6 Dixons Group plc
Consolidated Profit and Loss Account
28 weeks ended 11 November 2000
28 weeks ended 13 November 1999
52 weeks
ended
Before Freeserve
Before Freeserve
29 April
2000
Underlying Exceptional Underlying Exceptional
results items Freeserve Total results items Freeserve Total Total
Note £million £million £million £million £million £million £million £million £million
Turnover 2 2,174.0 - 30.2 2,204.2 1,713.5 - 7.2 1,720.7 3,889.9
Continuing operations 93.1 - (23.2) 69.9 77.8 - (10.0) 67.8 221.8
Exceptional operating items - (9.7) (0.4) (10.1) - (4.9) - (4.9) (4.9)
Group operating profit 93.1 (9.7) (23.6) 59.8 77.8 (4.9) (10.0) 62.9 216.9
Share of loss of associates - - (3.3) (3.3) - - - - (2.7)
Total operating profit 2 93.1 (9.7) (26.9) 56.5 77.8 (4.9) (10.0) 62.9 214.2
Exceptional items 3 - 7.6 - 7.6 - 224.0 (3.6) 220.4 234.3
Profit on ordinary activities before
interest 93.1 (2.1) (26.9) 64.1 77.8 219.1 (13.6) 283.3 448.5
Net interest 4 (2.3) - 1.6 (0.7) 14.7 - 1.4 16.1 24.9
Amounts written off investments - - (11.5) (11.5) - - - - (1.3)
Profit on ordinary activities
before taxation 90.8 (2.1) (36.8) 51.9 92.5 219.1 (12.2) 299.4 472.1
Taxation on profit on ordinary activities 5 (20.2) 1.9 6.3 (12.0) (22.1) 0.7 2.5 (18.9) (54.1)
Profit on ordinary activities
after taxation 70.6 (0.2) (30.5) 39.9 70.4 219.8 (9.7) 280.5 418.0
Equity minority interests 1.4 (1.5) (4.3)
Profit for the period 41.3 279.0 413.7
Dividends - Preference 6 - (2.2) (2.2)
Dividends - Ordinary 6 (24.1) (56.6) (124.3)
Retained profit for the period 17.2 220.2 287.2
Earnings per ordinary share
(pence) 7
Adjusted diluted (before exceptional 3.4p 3.5p 10.1p
items and Freeserve)
Basic 2.2p 15.7p 22.5p
Diluted 2.1p 14.2p 21.1p

Statement of Total Recognised Gains and Losses
Dixons Group plc 7
28 weeks 28 weeks 52 weeks
ended ended ended
11 November 13 November 29 April
2000 1999 2000
£million £million £million
Profit for the period 41.3 279.0 413.7
Translation adjustments 1.3 (0.2) (2.6)
Total gains and losses recognised in the period 42.6 278.8 411.1

8 Dixons Group plc
Consolidated Balance Sheet
11 November 13 November 29 April
2000 1999 2000
Note £million £million £million
Fixed assets
Intangible assets 463.1 3.4 443.3
Tangible assets 550.2 387.1 501.0
Investments 94.7 14.6 85.8
1,108.0 405.1 1,030.1
Current assets
Stocks 8 795.7 609.9 512.5
Debtors 398.1 292.0 358.3
Investments 672.1 864.9 788.8
Cash at bank and in hand 61.8 185.1 103.9
1,927.7 1,951.9 1,763.5
Creditors - due within one year
Borrowing (97.6) (46.7) (68.8)
Other creditors (991.7) (873.4) (878.4)
(1,089.3) (920.1) (947.2)
Net current assets 838.4 1,031.8 816.3
Total assets less current liabilities 1,946.4 1,436.9 1,846.4
Creditors - due after more than one year
Borrowing (606.0) (199.3) (556.9)
Other creditors (249.5) (182.4) (233.8)
(855.5) (381.7) (790.7)
Provisions for liabilities and charges (44.2) (34.7) (36.5)
2 1,046.7 1,020.5 1,019.2
Equity shareholders’ funds 9 1,003.4 986.0 977.0
Equity minority interests 43.3 34.5 42.2
1,046.7 1,020.5 1,019.2

Dixons Group plc 9
Consolidated Cash Flow Statement
28 weeks 28 weeks 52 weeks
ended ended ended
11 November 13 November 29 April
2000 1999 2000
Note £million £million £million
Net cash (outflow)/inflow from operating activities 11 (33.0) 140.9 422.5
Returns on investments and servicing of finance
Interest received 39.7 24.4 53.2
Interest paid (41.1) (1.8) (31.7)
Preference dividends paid 1- (2.2) (4.4)
(1.4) 20.4 17.1
Taxation paid (9.7) (1.0) (24.5)
Capital expenditure and financial investment
Purchase of fixed asset investments (9.1) (13.0) (28.5)
Purchase of tangible assets (109.7) (64.6) (200.5)
Sale of tangible assets 0.1 10.1 25.5
Loans to related undertakings 1- 1- (0.2)
(118.7) (67.5) (203.7)
Acquisitions and disposals
Cash consideration for acquisitions (1.9) (2.2) (467.0)
Net cash acquired with subsidiaries 1- 0.1 1.5
Cash consideration for partial sales of subsidiaries 3 7.6 242.2 251.7
Cash consideration for acquisition of associates 0.2 1- (9.5)
5.9 240.1 (223.3)
Equity dividends paid (67.8) (53.4) (107.7)
Net cash (outflow)/inflow before management of liquid resources
and financing (224.7) 279.5 (119.6)
Management of liquid resources
Decrease/(increase) in current asset investments 117.6 (117.7) (44.5)
Financing
Issue of ordinary share capital 7.9 11.1 15.2
Return of capital to shareholders 1- 1- (121.1)
(Decrease)/increase in debt due within one year (42.9) (1.8) 28.9
Increase/(decrease) in debt due after more than one year 28.4 (3.3) 337.8
(6.6) 6.0 260.8
(Decrease)/increase in cash in the period 12 (113.7) 167.8 96.7

10 Dixons Group plc
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 29 April 2000.
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 17.
The financial information for the 52 weeks ended 29 April 2000 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 11 November 2000 was approved by the directors on 10 January 2001.
2 Segmental analysis of turnover and operating profit
28 weeks 2000/01 28 weeks 1999/00 52 weeks 1999/00
Operating Operating Operating
Turnover profit Turnover profit Turnover profit
£million £million £million £million £million £million
UK Retail - base 1,845.4 74.2 1,655.8 73.5 3,552.7 226.9
- exceptional 1- (9.7) 1- (4.9) 1- (4.9)
International Retail 283.2 15.7 16.3 (0.4) 244.4 10.4
Internet Services - base 41.0 (30.9) 10.8 (11.6) 30.6 (28.3)
- exceptional 1- (0.4) 1- 1- 1- 1-
European Property 35.3 7.6 38.6 6.3 63.8 10.1
Intra group (0.7) 1- (0.8) 1- (1.6) 1-
2,204.2 56.5 1,720.7 62.9 3,889.9 214.2
Segmental analysis of net assets
11 November 13 November 29 April
2000 1999 2000
£million £million £million
UK Retail 457.4 286.8 256.3
International Retail - base 173.3 8.4 178.0
International Retail - goodwill 426.9 1- 405.5
Internet Services 55.2 10.4 18.7
European Property 50.4 61.1 50.1
Net operating assets 1,163.2 366.7 908.6
Net non-operating liabilities (146.8) (150.2) (156.4)
Net funds 30.3 804.0 267.0
Net assets 1,046.7 1,020.5 1,019.2

Dixons Group plc 11
2 Segmental analysis (continued)
All turnover and operating profit are derived from continuing operations.
Net non-operating liabilities comprise dividends payable, corporation tax, overseas taxation and deferred taxation balances and other non-operating assets and liabilities.
Net funds include cash and investments of £337.9 million (13 November 1999 £304.0 million, 29 April 2000 £279.3 million) held under trust to fund extended warranty liabilities.
Excluding amounts held under trust to fund extended warranty liabilities and Freeserve funds, net borrowing was £358.8 million (13 November 1999 net funds £402.8 million,
29 April 2000 net borrowing £75.8 million).
3 Exceptional items
28 weeks 28 weeks 52 weeks
2000/01 1999/00 1999/00
£million £million £million
Included within operating profit:
Restructuring of store portfolio and service operations (9.7) 1- 1-
Expenses incurred by Freeserve with respect to potential sale (0.4) 1- 1-
Year 2000 costs 1- (1.6) (1.6)
Integration of prior years’ acquisitions 1- (3.3) (3.3)
(10.1) (4.9) (4.9)
Exceptional items
Exceptional profit on partial sales
- Freeserve plc 7.6 220.4 238.3
- Partial sale of The Link Stores in 1996/97 1- 1- 7.5
7.6 220.4 245.8
Exceptional costs of the corporate restructuring 1- 1- (11.5)
7.6 220.4 234.3
The provision for restructuring the store portfolio and service operations comprises disposal costs of stores and redundancy costs of service engineers.
Consolidated net gains in the period arose on deemed disposals in respect of shares issued by Freeserve plc to Energis plc as part of the Subscription Agreement entered into in
July 1999, and on shares issued by Freeserve plc in respect of its acquisition of Intracus Limited. Exceptional profit on partial sale in 1999/00 arose largely as a result of the initial
public offering of a minority interest in Freeserve plc.

12 Dixons Group plc
Notes to the Interim Financial Report (continued)
4 Net interest
28 weeks 28 weeks 52 weeks
2000/01 1999/00 1999/00
£million £million £million
Interest receivable and similar income 32.1 26.4 54.5
Interest payable on bank loans, overdrafts and other loans repayable within
five years (33.2) (10.6) (30.4)
(1.1) 15.8 24.1
Interest capitalised 0.4 0.3 0.8
(0.7) 16.1 24.9
5 Taxation on profit on ordinary activities
The taxation charge on profit on ordinary activities before Freeserve and exceptional items is based on the estimated effective rate of taxation of 22.2% for the 52 weeks ending
28 April 2001. Taxation on exceptional items comprises an estimated taxation credit of £1.9 million on the provision for restructuring the store portfolio and service operations.
The taxation credit in respect of Freeserve comprises losses available for surrender within the Group.
6 Dividends
28 weeks 28 weeks 52 weeks
2000/01 1999/00 1999/00
£million £million £million
Special interim of 1.875 pence paid in 1999/00 - 36.3 36.2
Interim of 1.25 pence proposed (1999/00 1.05 pence) 24.1 20.3 20.3
Final for 1999/00 of 3.55 pence paid - - 67.8
Ordinary dividends paid and proposed 24.1 56.6 124.3
Preference dividends paid - 2.2 2.2
24.1 58.8 126.5
As a result of the conversion of the Preference shares into ordinary shares the Preference dividend paid on 31 July 1999 was the final such payment. For ordinary dividends
declared before 8 March 2000, the dividend per share has been restated to reflect the notional four for one share split effective at that date.

Dixons Group plc 13
7 Earnings per ordinary share
28 weeks 28 weeks 52 weeks
2000/01 1999/00 1999/00
£million £million £million
Profit for the period 41.3 279.0 413.7
Preference dividends 1- (2.2) (2.2)
Basic earnings 41.3 276.8 411.5
Preference dividends 1- 2.2 2.2
Diluted earnings 41.3 279.0 413.7
Freeserve results, net of taxation 30.5 9.7 18.6
Freeserve minority interest (7.0) (0.7) (2.5)
Exceptional items, net of taxation 0.2 (219.8) (232.0)
Adjusted diluted earnings (before exceptional items and Freeserve) 65.0 68.2 197.8
Million Million Million
Basic weighted average number of shares 1,911.1 1,759.2 1,829.6
Convertible Preference shares 1- 168.8 96.6
Employee share options and incentive schemes 28.9 39.2 39.1
Diluted weighted average number of shares 1,940.0 1,967.2 1,965.3
Pence Pence Pence
Basic earnings per ordinary share 2.2 15.7 22.5
Diluted earnings per ordinary share 2.1 14.2 21.1
Exceptional items, net of taxation 1- (11.2) (11.8)
Freeserve results, net of taxation and minority interests 1.3 0.5 0.8
Adjusted diluted earnings per ordinary share 3.4 3.5 10.1
Diluted earnings per ordinary share are calculated on the assumption that applicable outstanding share options were exercised on the first day of the period or the date of grant if
later.
The calculation of the weighted average number of shares has been made on the basis that the notional four for one share split effective from 8 March 2000 was in existence
throughout the current and prior periods.

14 Dixons Group plc
Notes to the Interim Financial Report (continued)
8 Stocks
11 November 13 November 29 April
2000 1999 2000
£million £million £million
Finished goods and goods for resale 756.3 565.6 470.6
Properties held for development or resale 39.4 44.3 41.9
795.7 609.9 512.5
9 Shareholders’ funds
Ordinary Share Capital Profit
share premium Capital Merger reduction and loss
capital account reserve reserve reserve account Total
£million £million £million £million £million £million £million
At 29 April 2000 47.7 50.2 121.2 (386.1) 425.5 718.5 977.0
Retained profit 1- 1- 1- 1- 1- 17.2 17.2
Translation adjustments 1- 1- 1- 1- 1- 1.3 1.3
Transfer to capital reserve 1- 1- 7.6 1- 1- (7.6) 1-
Ordinary shares issued:
Share options - employees 0.2 7.7 1- 1- 1- 1- 7.9
- employee trusts 1- 6.9 1- 1- 1- (6.9) 1-
At 11 November 2000 47.9 64.8 128.8 (386.1) 425.5 722.5 1,003.4
10 Reconciliation of movements in shareholders’ funds
11 November 13 November 29 April
2000 1999 2000
£million £million £million
Opening shareholders’ funds 977.0 754.9 754.9
Profit for the period 41.3 279.0 413.7
Dividends - Preference 1- (2.2) (2.2)
- Ordinary (24.1) (56.6) (124.3)
17.2 220.2 287.2
Other recognised gains and losses relating to the period 1.3 (0.2) (2.6)
Return of capital to shareholders 1- 1- (121.1)
Ordinary shares issued:
Share options 7.9 11.1 15.2
On acquisitions 1- 1- 43.4
Net additions to shareholders’ funds 26.4 231.1 222.1
Closing shareholders’ funds 1,003.4 986.0 977.0

Dixons Group plc 15
11 Net cash (outflow)/inflow from operating activities
28 weeks 28 weeks 52 weeks
2000/01 1999/00 1999/00
£million £million £million
Operating profit 56.5 62.9 214.2
Provisions for exceptional operating items 10.1 4.9 4.9
Utilisation of provisions for exceptional costs (0.8) (5.4) (9.2)
Depreciation 46.4 40.3 81.8
Loss on disposal of fixed assets 3.8 1- (4.2)
Amortisation of goodwill 1.8 0.2 0.9
Amortisation of own shares 0.3 0.2 1.5
Shares retained in lieu of income tax liability 1- 1- (0.5)
Increase in stocks (278.4) (183.5) (18.1)
Increase in debtors (50.7) (3.8) (0.9)
Increase in creditors 178.0 225.1 152.1
(33.0) 140.9 422.5
12 Reconciliation of net cash flow to movement in net funds
28 weeks 28 weeks 52 weeks
2000/01 1999/00 1999/00
£million £million £million
(Decrease)/increase in cash in the period (113.7) 167.8 96.7
(Decrease)/increase in current asset investments (117.6) 117.7 44.5
Decrease/(increase) in debt due within one year 42.9 1.8 (28.9)
(Increase)/decrease in debt due after more than one year (28.4) 3.3 (337.8)
(Decrease)/increase in net funds resulting from cash movements (216.8) 290.6 (225.5)
Loans acquired with subsidiaries 1- 1- (46.0)
Other adjustments (0.1) 1.2 (0.3)
Translation adjustments (19.8) 0.3 26.9
Movement in net funds in the period (236.7) 292.1 (244.9)
Opening net funds 267.0 511.9 511.9
Closing net funds 30.3 804.0 267.0

16 Dixons Group plc
Notes to the Interim Financial Report (continued)
13 Analysis of movement in net funds
29 April Other Translation 11 November
2000 Cash flow adjustments adjustments 2000
£million £million £million £million £million
Cash at bank and in hand 103.9 (42.7) 1- 0.6 61.8
Overdrafts (15.0) (71.0) 1- (0.6) (86.6)
(113.7)
Current asset investments 788.8 (117.6) 1- 0.9 672.1
Debt due within one year (53.8) 42.9 1- (0.1) (11.0)
Debt due after more than one year (556.9) (28.4) (0.1) (20.6) (606.0)
Net funds 267.0 (216.8) (0.1) (19.8) 30.3
14 Post balance sheet event
On 6 December 2000, the boards of Freeserve plc, Wanadoo S.A. and Dixons Group plc announced that they had reached agreement on the terms of a recommended share
exchange offer by Wanadoo for the entire issued and to be issued ordinary share capital of Freeserve plc. The offer will be made on the basis of 0.225 of a Wanadoo share for
each Freeserve share. As at 8 January 2001, this values the Group’s holding in Freeserve at over £880 million. The Group is seeking the approval of Dixons shareholders at an
Extraordinary General Meeting to be held on 11 January 2001.

Independent Review Report by the Auditors
To Dixons Group plc
Dixons Group plc 17
Introduction
We have been instructed by the company to review the financial information set out on pages 6 to 16 and we have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material inconsistencies with the financial information.
Directors’ responsibilities
The interim report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. The Listing Rules of the UK Listing
Authority require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board. A review consists principally of making enquiries of
group management and applying analytical procedures to the financial information and underlying financial data and based thereon, assessing whether the accounting policies
and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities
and transactions. It is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit.
Accordingly, we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the 28 weeks ended 11 November
2000.
Hill House
Deloitte & Touche
1 Little New Street Chartered Accountants
London EC4A 3TR 10 January 2001

18 Dixons Group plc
28 weeks 28 weeks
ended
ended
11 November 13 November Like for
2000 1999 Change like change
Retail Sales Analysis
£million £million % %
UK Retail
Dixons 378.4 360.8 5% 2%
Currys 705.2 685.0 3% -2%
PC World 546.1 448.3 22% 5%
The Link 176.5 125.3 41% 18%
Other 39.2 36.4 8% -..
International Retail
Nordic region 250.1 1- -... 20%
Spain and Portugal 13.0 1- -... 17%
Republic of Ireland 20.1 16.3 24% 4%
2,128.6 1,672.1 27% 4%
Retail Store Data
Number of stores
Sales area
11 November Change since 11 November Change since
2000 29 April 2000 2000 29 April 2000
000 sq.ft. 000 sq. ft.
UK Retail
Dixons 346 1(10) 869 (14)
Currys - Superstores 277 6. 3,413 162.
- High Street 122 (10) 217 (19)
PC World 91 10. 1,589 133.
The Link 244 26. 222 28.
International Retail
Nordic Region➀ - Norway 88 -. 629 -.
- Sweden 18 4. 394 76.
- Denmark 14 (32)➁ 193 (75)
- Finland 4 2. 101 50.
- Iceland 1 -. 17 -.
Spain and Portugal 12 -. .80 -.
Republic of Ireland 9 1. 112 21.
1,226 (3) 7,836 362.
Notes
1 Store numbers for Norway, Sweden and Iceland include franchise stores
➁ During the period Snehvide, a high street white goods chain, was sold

Dixons Group plc 19
General Information
Registrars and transfer office
Capita IRG plc
Balfour House
390/398 High Road
Ilford
Essex IG1 1NQ
Tel: 0208 639 2000
Stockbrokers
Cazenove & Co.
Registered office
Maylands Avenue
Hemel Hempstead
Hertfordshire HP2 7TG
Registered No. 3847921
Share dealing service
Cazenove & Co. operates a postal share
dealing service for private investors who wish
to buy or sell the Company’s shares. Details
are available from Cazenove & Co.
Tel: 0207 606 1768.
Internet
The Annual Report and other information is
available through the Internet on:
http://www.dixons-group-plc.co.uk
Dividend Reinvestment Plan
Details of the Group’s Dividend Reinvestment
Plan are available from the Registrars.
Dividend mandate
Shareholders who wish dividends to be paid
directly into a bank or building society account
should contact the Registrars for a dividend
mandate form. This method of payment
reduces the risk of delay or loss of dividend
cheques in the post and ensures the account
is credited on the dividend payment date.
Individual savings account
A corporate ISA is available for investors
wishing to take advantage of preferential tax
treatment in relation to their shareholdings.
Details are available from Brewin Dolphin Bell
Lawrie Limited. Telephone 0131 225 2566 and
ask for the Dixons Group helpline.
ADR depositary
The Company’s ordinary shares are available
in the form of American Depositary Receipts
(ADRs). The Company’s depositary is Bank of
New York. Tel: 001 212 815 2051 (from the
United States of America 888-BNY-ADRS tollfree).
Financial calendar
Interim ordinary dividend record date
2 February 2001
Payment of interim ordinary dividend
5 March 2001
2000/2001 preliminary results announcement
July 2001
2000/2001 annual report publication
August 2001
Annual general meeting
5 September 2001
Payment of 2000/2001 final dividend
October 2001

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