Preliminary results for the year ended 29 January 2011

24 March 2011

Detailed 'Delivering Value Phase 1' Update

Progress to Date (Feb 2008 to Jan 2011) and Milestones for 2011/12

7. Reducing working capital

Progress to date

Net working capital reduced by over £500 million⁽¹⁾ since 2007/08 excluding around £180 million negative impact of French LME⁽²⁾

• Reduced moving annual average stock by 11 days
• Average payment terms on direct sourced product extended by 51 days (to 85 days)

2011/12 milestones

• 'Like-for-like' working capital to remain constant. Overall balance will increase due to further negative effects in the final year of implementation of French LME⁽²⁾ and investment required for new stores
• Further extend average payment terms on direct sourced product by another 5 days (to 90 days)

1. At reported rates
2. Legislative changes shortening French payment terms, implemented over the 3 years to 2012