Annual Report & Accounts

2021/22

We help

everyone

enjoy

amazing

technology

Currys plc Annual Report & Accounts 2021/22

Currys

What we do

Currys plc is a leading omnichannel retailer of

technology products and services, operating

online and through 830 stores in 8 countries.

We Help Everyone Enjoy Amazing Technology,

however they choose to shop with us.

Our vision has a powerful social purpose

at its heart.

We believe in the power of technology to

improve lives, help people stay connected,

productive, healthy, and entertained.

We’re here to help everyone enjoy those

benefits and with our scale and expertise,

we are uniquely placed to do so.

We are a leading omnichannel

retailer of technology

Quick links

Long Live

Your Tech

Our Business

Model

Strategy

in Action

www.currysplc.com/investors

For the latest news visit our website.

Governance

Financial Statements

Investor Information

Strategic Report

£10,170m

£10,344m

£10,144m

2021/22

2020/21

2019/20

£116m

£156m

£186m

2021/22

2020/21

2019/20

6.7p

10.7p

11.9p

2021/22

2020/21

2019/20

£109m

£438m

£72m

2021/22

2020/21

2019/20

£(140)m

£33m

£126m

2021/22

2020/21

2019/20

(13.9)p

0.0p

6.3p

2021/22

2020/21

2019/20

2021/22

Highlights

Operational highlights

• Moved to a single brand in the UK&I.

Currys is now customers’ single

destination for all things tech.

• Launched new omnichannel

platforms in both UK and across

the Nordics.

• Strong progress against net zero

targets

(1)

, recognised by CDP “A” score.

• Successfully entered Cyprus,

our 8th market.

• Resumed dividend payments and

commenced a share buyback.

Financial highlights

Revenue

£10,144m

(2)%

Free cash flow*

£72m

(84)%

Adjusted profit before tax*

£186m

+19%

Adjusted EPS*

11.9p

+11%

Statutory EPS

6.3p

Statutory profit/(loss) before tax

£126m

+282%

Contents

Strategic Report

1 2021/22 Highlights

2 Our Vision

4 The importance of technology

6 Long Live Your Tech

8 Our business

10 Our business model

12 Chair’s statement

14 Chief executive’s statement

18 Strategy in action

34 Our stakeholders

40 Sustainable business

58 Risk management

60 Principal risks and uncertainties

65 Going concern and viability statement

66 Key performance indicators

68 Performance review

Governance

80 Governance at a glance

82 Board of Directors

84 Directors’ Report

87 Corporate Governance Report

100 Audit Committee report

109 Disclosure Committee report

110 Nominations Committee report

113 Environmental, Social and Governance (ESG)

Committee report

114 Remuneration Report

130 Remuneration Committee report

132 Remuneration details for 2021/22

148 Statement of directors’ responsibilities

Financial Statements

149 Independent Auditor’s Report

163 Consolidated Income Statement

164 Consolidated Statement of Comprehensive

Income

165 Consolidated Balance Sheet

166 Consolidated Statement of Changes in Equity

167 Consolidated Cash Flow Statement

168 Notes to the Group Financial Statements

222 Company Balance Sheet

223 Company Statement of Changes in Equity

224 Notes to the Company Financial Statements

230 Five Year Record (unaudited)

Investor Information

231 Glossary and Definitions

246 Shareholder and Corporate Information

Non-Financial Information Statement

We aim to comply with the Non-Financial

Reporting requirements contained in sections

414CA and 414CB of the Companies Act

2006. The requirements of this disclosure are

addressed within this section by means of

cross reference in order to avoid duplication

and to help stakeholders understand our

position on key non-financial matters:

Environmental matters (including impact of

business on the environment) pages 42-51

TCFD Report page 49

Colleagues pages 18-25

Social matters pages 52-55

Respect for human rights page 56

Anti-corruption and

anti-bribery matters page 56

Description of our business model pages 10-11

Details of the principal risks relating

to non-financial matters pages 58-64

Non-financial KPIs page 67

See our Key Performance Indicators on pages 66 to 67.

* Alternative performance measure (APM). In the reporting of financial information throughout the Annual Report

and Accounts, the Group uses certain APMs that are not required under IFRS. We consider these to provide

additional useful information on the performance of the business and trends to shareholders, consistent with

those used internally and are disclosed in order to provide parity and transparency for readers of the Annual

Report. Definitions, purpose and reconciliations to the closest statutory equivalent for our APMs are provided

within the Glossary and definitions on pages 231 to 245.

(1) Net zero is defined in the Glossary and definitions section on page 245.

2 Currys plc Annual Report & Accounts 2021/22

We put our

customers

first

We win

together

own it

Choose Afford

Enjoy

for life

Overview

Our Vision

Our business model

We help customers choose, afford and enjoy amazing technology however they shop with us.

As a market leading technology products

and services retailer, our vision drives

everything we do, in all countries in which

we operate.

Customers find technology incredibly

exciting, but also confusing and expensive.

Our vision goes beyond ensuring customers

can choose, afford and enjoy the right tech.

We put our purpose at the heart of what

we do, using our expertise, scale and

reach, to bring technology to everyone.

The assets, colleagues, capabilities and

scale that we have means that no one

is better placed than Currys to help

customers do all this.

We help customers choose the right technology,

across a huge range of products, through

stores or online. Our capable and committed

colleagues provide expert advice to help

customers make the right choice.

Technology’s amazing. And we’re here to

help everyone enjoy it. We don’t just sell

products to people, we make sure they have the

knowledge and confidence to get everything

they can out of them. We know that our advice,

our enthusiasm, our commitment to do what’s

right for customers brings them joy. And it’s

through this energy and determination that

we’ll keep more customers for life.

We help everyone afford the technology they

want. We won’t be beaten on price and we can

spread the cost of tech through the responsible

use of credit.

We help customers make the most of their

amazing tech through our unique services. We

get the product working, help give tech a longer

life and help customers make the most of their

products. We are uniquely positioned to help

customers throughout their life, and by doing so

we will drive relationships that are long-lasting

and more valuable to our customers and to us.

While there are thousands of us, in hundreds

of roles and positions, we’re all united by the

same love for technology and helping people

enjoy it. We value our differences and the

difference we make because that’s what

makes us unique. When we come together

amazing things happen and we win together

as one.

We all take charge of our future and we’re

not afraid of change. It’s how we succeed.

We find what works well and we make it work

better. We share ideas to help make our

customers’ lives easier and we go above and

beyond to help others out. As individuals and

as a business, we’re committed to learning,

growing and taking responsibility for making

things happen.

Our Values

Our values unite us, helping us achieve our strategic objectives.

We help everyone enjoy

amazing technology

Read more about Omnichannel on page 26.

We are building customers

for life

We want to be more valuable to

customers. This means helping them

to afford and enjoy their technology,

Our Credit and other Services, fuelled

by data, help us build those longer-term

customer relationships.

Read about Customers for Life on page 30.

Net zero by

2040

Help

Eradicate

Digital

Poverty

Grow our

Circular

Business

Model

Our strategic priorities

Sustainability priorities

Financial benefits by 2023/24

EBIT margin*

Capital expenditure

<1.5% of sales

New cash exceptionals*

£minimal

Steady Growth

4 Currys plc Annual Report & Accounts 2021/22

The importance of technology

to our customers

Amazing technology plays a

vital role in our customers’ lives

Connected Fed

Fit & Healthy

Helping our customers stay…

Productive Entertained

Clean

Governance

Financial Statements

Investor Information

Strategic Report

NOK 188bn

NOK 185bn

NOK 158bn

NOK 152bn

NOK 147bn

NOK 142bn

2016/17

2021/22

2020/21

2019/20

2018/19

2017/18

£21.2bn

£22.5bn

£18.6bn

£19.0bn

£19.1bn

£18.8bn

2016/17

2021/22

2020/21

2019/20

2018/19

2017/18

Cloud Gaming

Foldable Phones

Dual Screen

Laptops Food Preservation

8K TVs Energy Efficiency

Smart Security

Windows 11

Growth drivers

Trends

• Hybrid working

• E-learning

• Home entertainment

• Smart tech

Faster replacement

• Greater usage

• Greater familiarity with

benefits of new tech

• High rate of innovation

Larger installed base

• Complementary

products and services

opportunities

Supplier innovation

UK electricals market size (£bn) Nordics electricals market size (BNNOK)

7 out of 10 of the top global

R&D spend companies are

suppliers to us.

We are proud to

partner with many

of the world’s

largest and most

innovative companies.

The developments

coming from them are

incredibly exciting.”

Ed Connolly

Chief Commercial Officer

+14%

Yo2Y

+19%

Yo2Y

6 Currys plc Annual Report & Accounts 2021/22

Overview

Sustainable business

Our mission is to help everyone enjoy amazing technology. That’s why we exist.

Technology plays a vital role in every aspect of our lives, whether it’s helping you

stay connected with friends and family, working from home, or keeping you fed,

clean, fit, healthy and entertained.

Long Live Your Tech

When you buy your amazing technology, we help you

protect it from day one. Our care services and tech

insurance plans are a promise that we’ll help give

your technology longer life if something goes wrong.

With breakdown support and a seven-day fix

promise, we’re providing peace of mind.

When you do need help to repair your tech, we

deliver on our promise. 244 field engineers carried

out 250,000 repairs in the UK last year. If we

can’t repair your product, we’ll give you a Currys

voucher for a new one. You don’t pay a penny

more for parts, labour and call outs.

When you’re ready for something new, we

do it in a way that’s good for your pocket by

using the trade-in value to make sure your new

technology is more affordable. It’s also good for

the planet because we’ll look to give it longer life

in a different way to someone else.

When it’s reached the end of life, we make it easy

for everyone to bring their old or unwanted tech

into our stores to be recycled or reused for free.

With 300 stores in the UK, we offer free in-store

drop off for all tech and also offer home

pick-ups when you buy new tech from us.

Long

Live Your

Tech

£300k

of tech and

connectivity to

be donated to

families in the UK

145k

products

traded in

1.7m

repairs carried

out in 2021/22

1,600

skilled

colleagues

giving tech

longer life, with

1,050 in Europe’s

largest repair lab

13m

customers enjoy our

care services and

tech insurance plans

100k

tonnes of tech

recycled a year

tonnes of

tech recycled

since 2010

We help

customers

choose, afford

and enjoy

amazing tech

Governance

Financial Statements

Investor Information

Strategic Report

We all love new technology and want

to feel good about buying a new piece

of kit. But we also know that electronic

waste is the world’s fastest growing waste

stream and is expected to grow to nearly

75million tonnes by 2030.

We have to face facts: we can’t keep

throwing stuff away.

Let’s change our relationship with tech.

We believe there’s a far better way.

Instead of throwing your old kit away,

we want to give technology longer life.

At Currys, we don’t just sell amazing

technology; we save it too.

It’s not just good for the planet, it’s also

great for your pocket. Our recent UK

‘Cash for Trash’ campaign encouraged Brits

to give Currys their unwanted tech in return

for a £5 voucher. In just three weeks, we

saved the equivalent of ten double decker

buses of e-waste ending up in landfill.

As the #1 tech retailer in all the markets

we operate in, we’re uniquely placed to

lead the way in changing this relationship.

80% of UK households have shopped with

us in the past three years, putting us in prime

position to make a difference and help

our customers extend the life of their tech.

So, here’s how we’re doing it at every stage

of the product’s life.

When you buy the amazing

technology

Expert face-to-face help is at the heart

of why customers shop with us, and our

colleagues are passionate about helping

customers buy new technology and make

decisions that are right for them. And for

the planet.

We’ll always lead the way with the best

new products and the best prices. Our

Go-Greener range continues to grow as

we all look for ways to reduce our impact

on the environment. From energy-efficient

washing machines, tumble driers and ovens

to water-saving dishwashers, we’re working

hard with our customers and suppliers to

help everyone make better choices.

And when you buy your amazing

technology, we help you protect it from

Day one so your tech can have longer life.

You want to enjoy the technology and

that’s why, through our care services and

tech insurance plans, more than thirteen

million of our customers are getting peace

of mind and giving their new technology

longer life. Our plans are a promise that

we’ll help you give your technology longer

life if something goes wrong.

When you need help to repair it

And we’re delivering on that promise. Last

year, we made more than 1.7 million repairs

across the Currys Group. We have 1,600

skilled colleagues working to giving tech

longer life, 1,050 of which work in Europe’s

largest repair lab. Within the UK, 244 field

engineers carried out 250,000 repairs

in the UK. 80% of those were completed

on the first visit. In the Nordics, we make

several million spare parts available to

customers via an online platform.

When you’re ready for

something new

Trade-in is the bridge between your old

and your new tech. When you want to

upgrade, we do it in a way that’s good

for your pocket by using the trade-in

value to make sure your new technology

is more affordable.

We’ll also give it longer life in a different

form to somebody else. We’ll try to

refurbish and re-use the tech. We can

sell it second hand – and we’ve done

that with more than 255k products in the

UK & Ireland this year. Or we’ll donate it

to those who need it most. In the UK, 32%

of young people are at risk of becoming

digitally excluded because they’re unable

to get access to a device when they need

it. Through our work with the Digital Poverty

Alliance, Pennies and our Tech4Families

campaign, we believe we’ll raise between

£250k and £300k each year to provide

a mix of new and refurbished laptops

and connectivity to families who would

otherwise be excluded from personal

access. Through the ‘Second Home’

programme in our Kotsovolos stores,

more than 1,500 refurbished appliances

have been distributed to families in need

since 2017.

Read more, our sustainable business on pages

40 to 56.

When it’s reached the

end of life

We want everyone to bring their old or

unwanted tech into our stores to be reused

or recycled for free – whether they bought

it from us or not.

If we can’t re-use it, then we can harvest

the parts which can be put to good use

by our amazing repair colleagues in our

repair lab.

Or we can recycle it. We already collect

our customers’ unwanted electrical

equipment and small electrical

appliances for recycling when we deliver

their new technology. We currently recycle

more than 100,000 tonnes of used tech

every year across our Group – that’s more

than the combined weight of 50,000

London black cabs.

Giving technology longer life shows

how purpose and profit can – and must –

go hand in hand. We’re doing the right thing

and making a profit – and that means

we’re in it for the long-run. After all, we’ve

been repairing tech since the 80s and

we’ve recycled more than a million tonnes

of tech since 2010. Everyone benefits

because it makes commercial sense for

us, financial sense for customers and

environmental sense for the planet.

We’re leading the way in changing

everyone’s relationship with tech for the

better. We’ve come a long way but we’re

just getting started.

8 Currys plc Annual Report & Accounts 2021/22

UK&I Revenue 2021/22

£5.5bn

Read more, our performance review on page 70.

International Revenue 2021/22

£4.6bn

Read more, our performance review on pages 72 and 74.

£10.1bn

Total revenue

Our business

at a glance

Currys plc is a leading omnichannel retailer of

technology products and services, operating

online and through 830 stores in 8 countries.

We Help Everyone Enjoy Amazing Technology,

however they choose to shop with us.

In the UK&I we trade as Currys;

in the Nordics under the Elkjøp

brand and as Kotsovolos in

Greece and Cyprus.

In each of these markets we are the market

leader, employing 32,000 capable and

committed colleagues. Our full range of

services and support makes it easy for

our customers to discover, choose, afford

and enjoy the right technology for them,

throughout their lives. The Group’s operations

are supported by a sourcing office in Hong

Kong, state-of-the-art repair facilities and an

extensive distribution network, enabling fast

and efficient delivery to stores and homes.

Our vision, we help everyone enjoy amazing

technology, has a powerful social purpose at

its heart. We believe in the power of technology

to improve lives, help people stay connected,

productive, healthy, and entertained. We’re

here to help everyone enjoy those benefits and

with our scale and expertise, we are uniquely

placed to do so.

We’re a leader in giving technology a longer life

through protection, repair, recycling and reuse.

We’re reducing our impact on the environment

in our operations and our wider value chain

and we will achieve net zero emissions by 2040.

We offer customers products that help them

save energy, reduce waste and save water,

and we partner with charitable organisations

to bring the benefits of amazing technology

to those who might otherwise be excluded.

Countries

32k

Colleagues

715m

Website visits

830

Stores

25.6%

24.7%

26.5%

25.8%

25.2%

2021/22

2020/21

2019/20

2018/19

2017/18

25.9%

26.8%

26.0%

25.5%

25.0%

2021/22

2020/21

2019/20

2018/19

2017/18

UK Market share Nordics Market share

54%

UK&I

41%

Nordics

Greece

Governance

Financial Statements

Investor Information

Strategic Report

Our Markets at a Glance

Tech Market

29.8m

(1)

Households

£21.2bn

(2)

Annual spend

(20/21: £22.5bn)

64% Online share

(20/21: 76%)

Our footprint

18,067 Colleagues

(20/21: 21,000)

391m Website visits

(20/21: 548m)

309 Stores

(20/21: 314)

5.5m Store area sq ft

(20/21: 5.6m)

Tech Market

4.1m

(4)

Households

£2.2bn

(2)

Annual spend

Our footprint

2,922 Colleagues

(20/21: 3,000)

2m Website visits

94 Stores (20/21: 93)

1.1m Store area sq ft

(20/21: 1m)

Tech Market

13.2m

(3)

Households

£15.9bn

(2)

Annual spend

(20/21: £15.7bn)

32%

(5)

Online share

(20/21: 32%)

Our footprint

10,984 Colleagues

(20/21: 11,000)

322m Website visits

(20/21: 369m)

427 Stores

(20/21: 422)

4.8m Store area sqft

(20/21: 4.8m)

(1) Source: UK Office for National Statistics and Central Statistics Office (Ireland)

(2) Source: GfK

(3) Source: National Statistical Offices

(4) Source: Hellenic Statistical Authority

(5) The Group operates Franchise stores in Iceland, Greenland and the Faroe Islands.

10 Currys plc Annual Report & Accounts 2021/22

Our business model

Customers

Competitive

strengths

Our business model is to help everyone to choose,

afford and enjoy technology however they want to shop.

Modern omnichannel

network

Our network of 830 stores are well

located and well invested to provide an

excellent customer experience. Aligned

with our online digital channels, we

provide a true omnichannel experience.

Read more on colleagues and culture

on page 18.

Customers are at the heart of everything we do. Constant focus

on improving customer experience is key to achieving our objectives

and delivering value for all stakeholders.

We are uniquely positioned to

help customers enjoy their tech

throughout their life, and by doing

so we drive relationships that are

long-lasting and more valuable

to our customers and to us.

• Delivery

• Installation

• Set up

• Protection

• Repair

• Trade-in

• Refurbish

• Recycle

• Connectivity

• Help and Support

• Tutorials

• Subscriptions

We help customers choose the right technology

across a huge range of products, through our

stores or online. Our capable and committed

colleagues provide expert face-to-face advice

to help customers make the right choices.

Right Products

Large and relevant range of products including more sustainable

products in every market

Expert Advice

Our 32,000 highly trained, capable and committed colleagues

provide expert advice

Omnichannel

We help customers choose the right technology, from the best

range of products in stores or online

ShopLive UK

Live video shopping service to help customers get face-to-face

expert advice from the comfort of their home

We help you

get started

We help give

your tech

longer life

We help you get

the most out of

your tech

Governance

Financial Statements

Investor Information

Strategic Report

Tonnes e-waste collected

across our group for reuse or

recycling

103k tonnes

Reduction in scope 1, 2 & 3

emissions against a 2019/20

baseline

31%

Contributed to charities

and communities through

key programmes & initiatives

£1.2m

Customers

Satisfying our customers

Customers need the amazing technology

we sell to keep connected, healthy,

productive and entertained. Helping them

choose from the vast range of products

and making sure they can get the most

out of it is at the heart of what we do.

Read more on our sustainable approach

on page 40.

Delivering returns

for our shareholders

Our business is cash generative and

we ensure sustainability of this cash

generation through considered capital

deployment.

Value creation

for stakeholders

Value created

during the year

Customers find technology exciting,

but confusing and expensive. We help

everyone afford the technology they

need. We won’t be beaten on price

and we can spread the cost of tech

through the responsible use of credit.

UK NPS

Nordics HappyOrNot

90%

Group eSat

Revenue growth

(like-for-like, Yo2Y)

+10%

Dividend per Share paid

3.0p

Share buyback commenced

£75m

Right Price and Price Match

“We won’t be beaten on price”

Credit

Spread the cost of products

usingcredit

Trade-in

Give customers value for used tech

12 Currys plc Annual Report & Accounts 2021/22

Chair’s statement

Currys exists to

help everyone enjoy

amazing technology

Despite all of this, we finished the

year in a stronger shape. Profits grew,

shareholders were rewarded with

dividend and share buybacks, and both

colleague and customer satisfaction

continued to grow. This was only possible

with a great team led by Alex Baldock

and the commitment of our tens of

thousands of amazing colleagues.

Thank you to all of them.

All of our stakeholders rightly expect a

great business striving to be better every

year. We think we made pretty good

progress last year, but there still remains

the opportunity and necessity to do

better for all of them.

Colleagues

The role of our colleagues is critical to

the continued success of this business.

We cannot deliver highly valued advice

and service without well trained and

motivated colleagues. Investment in tools,

training and reward is key and we have

continued by investing in areas such as

a new UK Colleague Hub, thousands of

hours of colleague training and through

share awards which saw almost 13,000

colleagues receive shares this year with

a further 3,000 granted awards that will

vest after three years of employment.

Overview

As an executive and returning as Chair,

this is my 18th year at Currys – it will also

be my last. As part of a well-planned

succession process, Ian Dyson will be

taking over as Chair following the AGM

in September.

No year in Currys is dull. It is a dynamic

business in a fast-moving environment.

Last year was no different as we exited

(in fits and starts) from Covid restrictions,

saw war in Europe unfolding and dealt

with both supply chain disruptions

and inflation.

Customers

Our customers are noticing the difference

from our better trained more committed

colleagues, with better systems and

processes to back them up to give the

best tech advice and service in the market.

Our UK Net Promoter Score continues to

grow and the work on removing customer

pain points is showing real success.

In the Nordics, our customer club has now

grown to 6.8m members. Sharing this great

idea across the Group, we launched

Currys Perks in the UK in October. Already

11.1m customers have used Perks, enabling

us to reward our loyal customers and

create more personalised and relevant

propositions.

Suppliers

Our suppliers are amongst the largest

and most highly regarded companies in

the world – of the ten companies that

spend the most on R&D each year, seven

are suppliers to us. The innovation and

technological advances that are being

made to enhance people’s lives and help

them make more sustainable choices are

incredible, and we are in a privileged

position to be a trusted partner to these

companies helping them showcase their

amazing technology to our customers.

Governance

Financial Statements

Investor Information

Strategic Report

Currys is a business

that is very close to my

heart but I am leaving

with it in great shape

and a very exciting

future ahead of it.”

Lord Livingston of Parkhead

Chair of the Board

Communities

We want everyone to be able to enjoy

the benefits of technology and are

committed to making digital inclusive for

everyone. In 2020/21 we became one

of the three founding partners of a new

Digital Poverty Alliance (DPA). This was

supported by an initial £1m donation

from Currys which funded the first proof

of concept for the charity, by equipping

1,000 teachers and teaching assistants

in the country’s poorest communities with

the technology and support they need

to deliver high quality home schooling to

their pupils. We are delighted to confirm

our ongoing commitment to the DPA and in

2022/23 we will be using Pennies customer

donations to support vulnerable families

with life changing access to technology.

Meanwhile Elkjøp has committed

£400k+ to a number of strategic

partnerships that will help fight digital

exclusion in each of the countries in

which it operates.

While we don’t have a business in the

Ukraine, we have partners there and

colleagues nearby, so Currys donated

funds and devices to help support those

fleeing theirhomes.

Environment

We are striving to become not only a

more sustainable company but also to

help our customers in their journey. It is

not just because this is what we and our

stakeholders think is the right thing to

do, but also that providing more energy

efficient products and services to help

keep tech working longer and to be

recycled at the end of its life, is something

we are uniquely able to do and can be a

key differentiator in our market.

Supported by new initiatives such as

“Cash for Trash” in the UK, we collected

103,078 tonnes of waste tech. This effort

will feature centrally in our proposition of

helping our customers choose and afford

amazing technology, helping them get that

tech started, giving that tech a longer

life and helping them get the most out

of the tech.

Our progress in sustainability has been

recognised by some of the leading rating

agencies with significantly improved

scores from S&P Global ratings and

Sustainalytics and an “A” score from CDP,

which ranked Currys plc amongst the top

2% of 11,000 global companies surveyed.

Shareholders

We continue to enjoy the engagement

and support of our shareholders. We have

returned this support through paying a 3p

dividend during 2021/22 and commencing

a £75m buyback, reflecting the substantial

improvements in the Group’s financial

position over the past few years. Due to

market concerns on the near-term outlook

for European consumer spending, our

share price has not improved as we all

would have liked, but our strong balance

sheet combined with market leadership

and quality of operations make us

confident that we can deliver long term

value to our shareholders.

Board

The Board of Currys plc brings together

a diverse range of relevant skills and

expertise. Bruce Marsh, our new CFO, has

been a welcome addition to the Board

in the year. In May, it was announced

as part of a well planned succession

process that I will be stepping down in

September. I will be leaving Currys with

sadness as it is a business very close

to my heart, but I am delighted to be

succeeded by someone of the calibre

and experience of Ian Dyson. Ian brings

a wealth of experience across consumer

facing industries and public company

boards. He will be a great support to

Alex and the rest of theteam.

Looking ahead

My time at Currys has been challenging

but hugely enjoyable. Despite a difficult

external environment, the business is in

really good shape; it has a great

management team, strategic clarity, strong

finances and a very exciting future ahead

of it. Although the immediate future will

be challenging, I have no doubt that the

business is well positioned to deliver

value for all stakeholders, as it has done

for almost 140 years. I look forward to

watching the continuing progress from

the sidelines.

Lord Livingston of Parkhead

Chair of the Board

6 July 2022

14 Currys plc Annual Report & Accounts 2021/22

Chief executive’s statement

A stronger Currys,

doing more to

help customers

This year saw Currys emerge from the

restrictions of Covid-19 lockdowns. It is now

clearer than ever that amazing technology

plays a vital role in our customers’ lives.

It keeps them connected to loved ones,

fed and clean, fit and healthy, as well as

productive and entertained. As evidence

of this, during the year the UK tech market

was +14% larger than pre-pandemic while

Nordics was +19% larger.

The year saw stores bounce back strongly,

with a +24% rise in store sales across

the Group (UK&I +61%). Our stores are

profitable and on flexible lease lengths,

but most importantly, they are truly valued

by customers as a destination to see and

interact with technology while accessing

trusted and expert face-to-face

advice. We know that our customers find

technology exciting, but they also find it

confusing and expensive, and we see it

as our role to give them the help they

need to choose the latest tech, afford it,

get it started, give it longer life, and get

the most out of it. As the cost of living rises,

we expect the role of stores to become

more important as customers will want to

make more considered shopping journeys

for essential purchases.

After two years of constraints and

bottlenecks on supply we are now securing

good stock and availability across most

categories. Component shortages and

manufacturing bottlenecks are still causing

stock to be short in a small number of

products, but the headwinds from shipping

constraints have largely dissipated. We

have also made some modest investment

in stock to secure supply ahead of

expected price rises but overall our stock

levels are healthy with good sell-through.

Our strong results show the vital role

that technology plays in millions of lives,

and that more and more customers are

turning to Currys to help them enjoy that

technology to the full.”

Alex Baldock

Chief Executive

Governance

Financial Statements

Investor Information

Strategic Report

The coming year will also see the full

effect of current inflationary headwinds.

This touches on our business in three

major areas.

• First, the cost of goods rises. On most

products we pay in local currency

when the goods arrive in our markets,

the price increases we are seeing at

the moment will be felt by all of our

competitors as well. These costs are

passed on to consumers, but we seek to

proactively mitigate through providing

similar, different specification products

at alternative price points.

• Second, we see cost inflation in our

operating costs. Energy and fuel costs

have risen dramatically, and we have

continued to invest in tools, training and

reward for our colleagues. We planned

for cost inflation and have cost saving

and efficiency programmes underway

to offset much of the headwind but

the speed and size of inflation is higher

than we expected. We are seeing the

benefit of deflation in one of our larger

cost areas, with rent falling 41% on UK&I

store lease renewals in the last year.

• Finally, inflation is very likely to create

a headwind to consumer spending and

impact sales, particularly in some of

our more discretionary categories. Here

we are doubling down on our customer

offer and will do all we can to help

customers. We won’t be beaten on

price, we will use our extended ranges

to offer products at lower price points

and we can help customers spread the

cost of technology through responsible

credit. We do much more than this; we

help customers lower fuel bills with

our “Go Greener” range and through

Protection, Repairs, Refurbish and Reuse

to give tech a longer life and help

customers get the best value out of their

existing tech. We can do this because

we have unique capabilities and scale

in this area and our diversification will

continue to help us to outperform

the market.

Social purpose

These activities are a core part of our

business and our social purpose, where

we have three strategic priorities:

• Circular economy – we will improve

use of our resources and create circular

business models

• Climate change – we will achieve

net zero

(1)

by 2040

• Communities – we will help eradicate

digital poverty

In all of these areas we have strong

credentials and have made significant

progress against our objectives in the

year. Our scope 1 and 2 carbon emissions

fell 40% to 21.3k tonnes during the year,

marking an 88% reduction over the last

7 years. These credentials and progress

have increasingly been recognised

externally with the CDP rating our climate

change disclosure as A, and high scores

from other external agencies.

Capable and Committed

Colleagues

Our Capable and Committed Colleagues

provide the magic ingredient in helping

our customers discover, choose and enjoy

amazing technology. Expert face-to-face

help is at the heart of why customers

shop with us, and that takes skilled and

dedicated colleagues.

We continue to make significant

investments in developing and rewarding

our colleagues. In October we raised all

our UK & Ireland colleagues’ pay to at

least the level of the Real Living Wage

and in August 2022 will raise again so

that every colleague is earning an hourly

rate of at least £10. We are committed

to building skills for life. In the UK &

Ireland, our colleagues consumed over

three million training modules between

May 2021 and the end of April 2022

and we provided over 572,000 hours of

combined learning. In Elkjøp Nordics, over

22,000 training hours were completed

by our colleagues from e-learnings

alone. This continued investment in our

colleagues is yielding great results. Our

most recent employee engagement

survey results show that we’re becoming a

world leader in engagement as at +77, our

score is above the external global retail

benchmarks for employee engagement.

Our investment in colleagues is rewarded

through increased customer satisfaction,

leading to market share gains and higher

sales. This in turn supports margin growth

as colleagues become ever-better at

helping customers enjoy the benefits of

all the amazing technology and amazing

services that we offer.

Omnichannel

Omnichannel is our strategy to create

a seamless shopping journey across

all channels. Whether it is online, in our

830 stores or using a combination of both

channels, we will provide customers with an

easy and connected shopping experience

across our full range of products and

services. The last 12 months have shown

us just how important it is to have stores

and online working seamlessly together

to provide customers a full experience.

Omnichannel starts with a great online

experience. Looking at online alone, we

are big. Our websites generated 715m

visits, the majority of which is free traffic

based on the history and high awareness

of our brands. As a standalone business

our online operations are comfortably

larger than our competitors in any market.

In the year we fully rolled out our Nordics

“Next Generation Retail” omnichannel

platform. This has already yielded

pleasing results in both online and store

performance. In the UK&I, our e-commerce

platform started the transition to

Salesforce. The riskiest part of the process

has been completed and the anticipated

drop in SEO traffic that is associated with

any major replatform was both lower and

faster to recover than expected. The more

exciting upgrades that will give users more

personalised content, recommendations

and online promotion, and driver greater

benefits for us, will come later this year.

Read more on our strategy on page 18.

Strategic progress

In the following sections you

will find further detail on

progress made and intended

next steps under the three

major pillars of our strategy;

Capable & Committed

Colleagues, Omnichannel

and Customers for Life.

(1) Refer to the glossary and definitions section set out at the end of this report for further details on definition.

16 Currys plc Annual Report & Accounts 2021/22

Our Group online sales are +31% larger

than two-years ago but as expected

did decline (29)% in the year with store

sales rising +24% (UK&I +61%) year on

year as customers returned to our 830

own and franchise stores. It is evidence

of customers rediscovering the attraction

to the store shopping experience that

we saw such strong recovery in sales. Our

stores are on average lease lengths of

less than five years and almost all are

contribution positive. In the UK & Ireland

we negotiated leases on 40 stores in the

year, with an average rent reduction of

41%, we also closed 5 stores where long

term economics did not meet our targets.

More than ever, we’re focused on three

big customer benefits enabled by our

omnichannel strategy: we’re “never out

of stock”, customers can get hold of their

tech when they want it, and customers

can always access expert face-to-face

advice.

• First, for our customers in-store, we’re

“never out of stock”. Our ‘Order Online

In-Store’ sales, where our in-store

colleagues sell customers products

from the online range, are +118% higher

than two years ago in the UK.

• Second, customers can get hold of

their technology right now through our

Order & Collect service. In the UK order

& collect grew +18%, with one-fifth of

online orders collected in our stores.

Over half these were for same day

collection, showing that customers

value the immediacy that we can

deliver. In the Nordics, 39% of online

sales were through Order & Collect, with

total sales through this channel growing

+49% compared to two years ago.

• Third, customers can now always get the

expert face-to-face advice they value,

not just in store, but anywhere, 24/7,

through ShopLive video shopping.

Since stores opened, we continue

to see higher customer satisfaction,

stronger conversion, and larger average

order values than unassisted online.

We created a stronger partnership with

GXO this year, simplifying our UK logistics

operations by partnering with them for

both warehouse and transport logistics –

this gives us a faster logistics operation,

with more integrated data and reporting

as well as GXO’s expertise in this field.

Looking forward, we have approved

investment into warehousing and the

next year will see us move into new

warehouse space in the UK and break

ground on a new distribution centre in

Jönköping, Sweden.

Customers For Life

As the leading technology retailer in

all our markets, with the ability to serve

customers across both channels, we have

a significant opportunity to increase our

share of customers’ tech spend.

This starts by using data to fuel CRM and

personalisation. Our Nordic customer club

members grew +26% YoY to 6.8m members.

We continue to see strong loyalty from

these customers as they shop 72% more

frequently than non-club members

delivering +58% higher revenue and +76%

higher gross profit. In total, identified club

members represented 46% of Nordics

revenue, up +13ppts year-on-year. There is

plenty of opportunity to keep growing our

club members and our new omnichannel

platform has helped us identify more

transactions. We have set up a new

team to start monetising the data we are

collecting. In the UK, Perks, our upgraded

and rebranded CRM tool, was launched

in the year, which has helped us grow our

UK customer base to 11.1m, +16% year-

on-year and during the year we added

SMS marketing and have 3m permissions

already. Our new website will allow us

to link Perks to identifiable individual

customers, creating opportunities for

enhanced personalisation.

We are uniquely positioned to help

customers enjoy technology for life –

no other retailer or service provider can

help customers choose, afford and enjoy

technology as we can.

Responsible credit helps customers

afford the tech they need when they

need it. UK credit customers increased

+22% to 1.7m, and credit sales were +21%

higher, driven by growth from both new

and existing customers. The adoption rate

of credit climbed +2.5%pts to 13.3% with

online adoption nearly matching that of

stores. Credit is now making a meaningful

contribution to profits and we’re confident

that we will reach our 16% targeted

adoption rate by 2023/24, particularly

as we have seen adoption rate of over

18% in recent weeks.

In Nordics the credit adoption rate

climbed to 9.5% (2020/21: 8.3%) of sales

while Greece continues to lead credit

adoption with over 25% of sales on credit.

We all love new technology and want

to feel good about buying a new piece

of kit. But we also know that electronic

waste is the world’s fastest growing waste

stream and is expected to grow to nearly

75 million tonnes by 2030. At Currys, we

intend to be as famous for helping give

customers’ tech longer life as we are for

helping them choose new tech. Longer life

through protection, repair, trade-in and

recycling is more important now than ever,

when customers are facing into spending

headwinds.

We help customers protect products from

day one. Across the Group there were 13m

protection plans active at the end of the

year. We sell these because customers

want the peace of mind of protection,

and we are able to offer plans at better

value than competitors as we run our

own repair practices. We can also do

standalone repair and our repair centre

and in-home teams fixed 1.7m pieces

of tech last year. If customers want to

replace existing tech, we offer trade-in

as a bridge between old and new tech.

During the year, our UK business trade-in

volumes grew +90%. This is a small area of

the business that we intend to focus more

of our efforts on. At the end of life we can

collect products for recycling, and over

100,000 tonnes of WEEE was collected

during the year.

Finally, connectivity is important for

helping customers get the most out of

tech and driving lifetime relationships.

Our UK & Ireland mobile category has

been through a significant transformation

over the last three years. We have ended

legacy volume contracts and closed our

standalone Carphone Warehouse stores

in UK & Ireland. We offer a wide range of

handsets and connectivity through our

agreement with Vodafone and on our

own MVNO, ID Mobile, which is backed by

Three. Our mobile category is now a lot

smaller than it was, but it is profitable and

all material restructuring costs are behind

us. In January we launched our new

credit-based mobile offer. Unfortunately,

this didn’t hit the mark with consumers and

fell below the hurdle rates we required

Chief executive’s statement continued

Governance

Financial Statements

Investor Information

Strategic Report

for continued investment. We have made

the sensible decision to cease the credit-

based offer. At the same time, the post-

pay market has stabilised and we have

proven it can be run profitably as part of

our overall tech offer. We will therefore

continue putting our weight behind post-

pay and look to build market share, which

has stabilised over the last six months.

Cost inflation and

saving initiatives

During the year, inflation in UK&I alone

raised non-product costs by more than

£50m. This was driven by about £22m

each for wages and shipping with a

further £8m in energy costs.

Against this inflationary headwind we

have a target of saving a cumulative

£300m of annual costs in the UK&I in the

three years of 2021/22 to 2023/24. In the

first year of this programme we delivered

sustainable in-year savings of £69m,

which was slightly ahead of our plans.

This included £12m of supply chain savings

due to focus on driving improved and more

efficient processes across a full range

of initiatives. We made £30m savings in IT

and central costs from reorganisation and

removal of duplication and reductions

in GNFR totalling £19m. Finally, savings in

stores were £8m as we continue to make

improvements to our operating model.

In the year ahead we will realise the

full year benefit of savings already

made and deliver further savings across

goods-not-for-resale, supply chain and

store operations, and IT costs.

Alex Baldock

Chief Executive

6 July 2022

Our scale as an international market leader,

our grip on costs and our strong relationships

with suppliers will allow us to manage inflationary

headwinds and keep amazing technology within

reach of everyone, even now. That’s what Currys

exists to do, and it’s never mattered more.”

18 Currys plc Annual Report & Accounts 2021/22

Nov 2021

May 2021

Nov 2020

2021/22

2020/21

2019/20

Strategy in action

Colleagues

Our capable and committed colleagues – our greatest advantage

Colleagues

Our vision is to help everyone enjoy amazing technology. We know that our customers

find technology exciting, but they also find it confusing and expensive. Our capable and

committed colleagues provide the magic ingredient in helping our customers discover,

choose and enjoy amazing technology.

That’s why we’re investing in excess of

£25m between 2021 and 2023 in skills,

wellbeing and reward programmes for

colleagues. Happy colleagues make for

happy customers. Expert face-to-face

help is at the heart of why customers

shop with us, and that takes skilled and

dedicated colleagues. Our investment in

colleagues is rewarded through increased

customer satisfaction, leading to market

share gains and higher sales. This in turn

supports margin growth as colleagues

become ever-better at helping customers

enjoy the benefits of all the amazing

technology and amazing services that

we offer.

And the results speak for themselves.

Our most recent employee engagement

survey results shows that we’re becoming

a world leader in engagement. We’re now

ahead of the external global and retail

benchmarks.

These are encouraging results, particularly

as they were achieved during a year

of significant change, uncertainty

and disruption.

80%

of UK&I customers

say our colleagues

are the main reason

for a ‘great experience’

Currys UK&I Employee Satisfaction Total UK&I NPS

Happy colleagues… …create happy customers

+10pts +2pts

Governance

Financial Statements

Investor Information

Strategic Report

Happy colleagues make

for happy customers and

happy shareholders. Our

people are at the centre

of who we are because

it makes us what we are.”

Paula Coughlan

Chief People, Communications and

Sustainability Officer

Covid-19 – keeping colleagues

and customers safe

We have continued to create Covid-19

safe environments for our colleagues

and customers throughout the Group.

Within the UK & Ireland business (UK&I),

our safety measures have proved very

successful and ensured that the infection

rate across our business remained

below that of the general population.

For example, we have conducted over

32,000 colleague tests to make sure our

colleagues can safely continue selling

and delivering amazing technology

to customers.

In Greece and the Nordics, we have also

continued our pandemic safety measures,

including rapid testing, plexi-glass to

protect colleagues and customers,

hand sanitisers, masks and on-demand

disinfection for our physical locations.

We have remained mindful of colleague

sentiment and have communicated and

consulted throughout this challenging

period. Our phased approach to the

gradual easing of our internal restrictions

has been well received and supported.

Looking ahead

We are not immune to the economic

and political uncertainty which is fuelling

high inflation and the rising cost of living

for households. This volatility is leading

to predictions of pay inflation and

a new battle for talent. Within the UK

specifically, data points to a smaller

workforce. Recent studies have suggested

that over a million people born overseas

may have left the UK during the Covid-19

pandemic.

The impact of the pandemic has also

accelerated trends that are reshaping

the workplace. These include the

move towards flexible working and the

importance of wellbeing for colleagues.

How we’re responding –

Our People Plan

There are three pillars to our People Plan:

1. Ready for the Future: To be a modern

retailer that’s responding to changing

customer demands and expectations

through a workforce that’s flexible,

skilled and financially sustainable.

2. Home for the Best Talent: To be a

destination for talent with a compelling

brand proposition. We want people to

aspire to work at Currys and feel they

can grow their career with us.

3. Great Place to Work: To be an

organisation that brings our vision and

values to life through highly engaged

colleagues that are proud to work

for Currys and feel like they belong.

20 Currys plc Annual Report & Accounts 2021/22

Strategy in action

Colleagues continued

Ready for the future

Progress in 2021/22

Building skills for life

In Retail, customer demands are changing

fast, as are their expectations around

how they want to shop. As we develop

the workforce of the future for our

omnichannel colleagues, we’re committed

to responding to these changes and

building skills for life. As an example,

we’ve spent in excess of £1.9m in technical

skills-based training for our colleagues

in Supply Chain and Service Operations,

and around £2.5m in the Nordics through

a comprehensive range of programmes

designed to increase colleague capability

and contribute to the experience and

satisfaction of our customers.

Our three new Technical Training Centres

for Supply Chain and Service Operations

are now fully operational. We induct our

Driver Installer and Technicians in these

centres, with a full range of products and

categories available to be trained in.

A recent example of how we’re building

skills for life is our ‘Unleashing Colleagues’

programme in the UK & Ireland. Customers

tell us that it’s our expert advice they value

most. So, we want our store colleagues to

work in new, more flexible ways so that they

have more time to sell, and better serve

and support our customers. We’ve asked

all of our store colleagues to adopt a

broader, multiskilled role while maintaining

their specialism. They will now flex to sell,

serve and support customers. For some

Support colleagues who have limited

customer facing experience, we’ll help

them to get the skills they need to flourish.

In Elkjøp Nordics, we’ve also created

‘learning tracks’ for all our store colleagues,

which equips them with the skills they need

to succeed in their roles. The track, which

covers all essentials within customer care,

begins as soon as they join and builds

their skills over a structured period of time.

New Currys London Campus

As part of our new model, we announced

a partnership with the world’s leading

co-working company, WeWork, to

create our New Currys London Campus

at Waterloo.

Our teams will be able to use WeWork

locations across the UK. In a further

step to ensure this new collaborative

approach extends throughout the UK,

we’re also refurbishing several spaces

in stores, Customer Service Centres and

our Learning Academy at Fort Dunlop too,

giving colleagues even more flexibility

about where they work.

Flexible Working

We’re committed to leading the way in

making Currys a world-class place to

work for colleagues, one that keeps

and attracts top talent.

New model

In March 2022, we introduced a

refreshed hybrid working model for all

corporate and commercial colleagues

in the UK, which reinforces our commitment

to hybrid working and the importance of

face-to-face collaboration. Our model

includes clear guiding principles:

• Be Connected

• Be Intentional

• Be Inclusive

• Be Flexible

Governance

Financial Statements

Investor Information

Strategic Report

Just as the future

of shopping is hybrid,

so is the future of work.

We’re all preparing

for a mix of remote

working and

face-to-face

collaboration.

We like digital…

But we’re still human.”

Alex Baldock

CEO

Flexibility in customer-facing roles

Elsewhere in Currys, across our UK

Customer Management Centres (CMCs),

over 200 colleagues are able to work

flexibly from home.

We’ve also introduced technology to

enable colleagues to work flexibly

when selling and serving customers

face-to-face or through video channels.

One example is ShopLive UK, our 24/7

live video shopping service in the UK

which brings amazing instore expertise to

customers online. Nearly 40 colleagues

currently work flexibly to provide this

service around the clock.

Our commitment to flexible working

is helping us to attract new talent

and increase colleague engagement.

Colleagues value the work/life

balance that it brings, as well as the

financial benefits such as reduced

travelling costs.

22 Currys plc Annual Report & Accounts 2021/22

Strategy in action

Colleagues continued

Home for the best talent

Progress in 2021/22

The battle for talent –

attracting talent

We recognise the challenging labour

market and battle for talent, but we’ve

continued to attract talent across the

Group. In the UK & Ireland, we received

over 44,000 applications and hired

nearly 2,500 colleagues on Fixed Term

Contracts to support Peak 2021. We went

on to retain over 900 of these colleagues

with permanent contracts. In addition, we

leveraged our partnerships with DHL and

GXO, using our combined scale, to bring

in colleagues to support our Warehouse

and Transport logistics teams for Peak.

Internationally, over 3,500 colleagues

joined our Nordics business in the last year,

and nearly 1,000 joined our ranks in Greece.

We’re also pleased to confirm that the

annual performance bonus will pay out

again this year to over 2,000 of our UK

& Ireland corporate colleagues, with

performance outcomes ranging between

86.4% to 90.6% of maximum.

Within our UK&I stores, we have linked

the delivery of key metrics (including

sales, margin, credit, services adoption

and customer satisfaction) to colleague

bonus for over 7,600 sales and support

colleagues. As a result, our colleagues

received an average increase of between

£0.60 and £2.60 above their hourly

rate during Peak, with our top 500 sales

colleagues receiving the higher amount. This

positions us well in a competitive market.

Share ownership. Our award-winning

Colleague Shareholder Scheme was

launched in February 2019, and the first

award vested in February 2022 with

over 12,600 current colleagues in 11

countries receiving their shares. We have

also continued to grant awards to new

participants throughout 2021/22, granting

awards to nearly 3,000 colleagues

globally.

We also continue to offer our UK

colleagues the opportunity to build a

personal stake in the business through

our Sharesave Scheme, with currently

2,685 active participants.

Around 250 senior leaders from

across the Group are also a part of our

Long Term Incentive Plan (LTIP) which is

designed to link reward with the long

term success and growth of our business.

Pension and Flexible Benefits. All UK

and Ireland colleagues have access to a

defined contribution workplace pension.

We also provide a wide range of benefits

to all colleagues throughout the Group.

In the UK, for example, colleagues can

benefit from Life Assurance; Employee

Assistance Programme; Digital GP; Thrive:

Mental Wellbeing app; and the Aviva

Wellbeing app.

We remain committed to emerging talent,

supporting people into employment and

creating skills for life. In the UK & Ireland,

173 new apprentices started on various

programmes such as LGV driving, gas

engineering and white good engineering

with 288 on programme currently. Elsewhere,

Elkjøp Nordics has introduced a 12-week

long ‘try-and-hire’ programme for junior

developers in our Nordic IT department.

We’ve also continued to develop our

internal and external Careers site with

a complete brand refresh in line with our

Currys launch. In the Nordics, we’ve built

a bespoke onboarding solution – called

‘All on Board’ – to support new hires.

Pay inflation –

Rewarding our colleagues

Real Living Wage. From 1st August

2022, we plan to pay a minimum base

hourly rate of £10 to all hourly paid UK

colleagues. This is above the Real Living

Wage (RLW) for colleagues outside

London. The new London rate will continue

to align to the RLW rate of £11.05 per hour.

This will result in an average increase of

5.2%. Almost 12,000 hourly paid frontline

colleagues will benefit from the increase.

This builds on the average increase of 9%

the same colleagues received in October

2021, meaning that UK colleagues will

receive on average a 14.2% increase in

pay over these two financial years.

Drivers and warehouse colleagues.

We also responded to the national

shortage of drivers and warehouse

colleagues by investing over £9m to make

sure we were competitive in attracting and

retaining talent for critical roles. We put in

place additional pay initiatives including

sign on and retention awards, additional

overtime and hourly pay rates and an

enhanced referral scheme.

Bonus. In May 2021, we also introduced

our new quarterly Supply Chain and

Service Operations (SC&SO) bonus plan

for over 3,000 colleagues to better align

performance with the strategy and day to

day activities within SC&SO and drive the

team and individual behaviours necessary

to deliver on the new strategy.

12,600

Colleagues received shares

across the Group

UK & Ireland

total learning hours

572k

Governance

Financial Statements

Investor Information

Strategic Report

Careers – Developing our talent

Expert face-to-face help is at the heart

of why customers shop with us, and that

takes skilled and dedicated colleagues.

Colleagues have embraced our culture

of learning.

UK & Ireland. In the UK&I, they consumed

over three million modules/resources

between May 2021 and the end of

April 2022. We’ve provided over:

• 188,000 hours of classroom learning

• 384,000 hours of online learning

• 572,000 hours of combined learning

International

• Elkjøp Nordics: over 550 training

programmes were offered through

more than 100 suppliers and in-house

training programs. In total, over 22,200

training hours have been completed

from e-learning alone and 97% of

training was rated four stars or above

by colleagues on a 5-point rating scale.

• Kotsovolos: nearly 1,100 store and call

centre employees have taken part in

product and services training, totalling

over 13,000 training hours.

Some examples of development

throughout the Group include:

• Connect Conversations between

Colleagues and Managers (which are

part of PEAK Performance across UK

& Ireland) have been introduced to

the entire organisation and provide a

platform to discuss performance, career

aspirations and development planning.

• A comprehensive onboarding programme

of training in the Nordics. Modules were

delivered face-to-face or online through

‘Academy’, our internal training platform.

• Launch of the ‘UX aKademy’ in Kotsovolos,

designed to build User Experience (UX)

capability, and the ‘CX aKademy’, designed

to build a customer experience culture

and develop capabilities in areas such

as customer journeys and design thinking.

• A comprehensive suite of learning for

our CCO (Commercial) Colleagues,

covering intermediate and advanced

negotiation, programme management,

financial performance and commercial

decision-making.

Developing our leaders

Developing our leadership capability is

essential for growth – for the colleague,

the team and the Group. We’re doing this

in many ways, such as:

• UK & Ireland: Launch of ‘Amazing

Managers’, a programme to build

people manager capability across

Retail and Supply Chain and Service

Operations:

– Nearly 300 General Managers and

Regional Managers went through

the programme.

– Over 200 First Line Managers and

Site & Operations Managers went

through the programme.

• International:

– Elkjøp Nordics: A comprehensive

suite of leadership programmes

in the Nordics designed for

colleagues at all stages in their

leadership journey, from ‘Emerging

Leaders’, to ‘Leading Others’,

‘Leading Leaders’ and a specific

programme for ‘Leading Functions’.

Nearly 170 colleagues participated

across all four programmes.

– Kotsovolos: A new ‘Supercharging

Virtual Leaders’ programme for

leaders in Kotsovolos designed

to build the skills to lead in a

hybrid world. Over 90 leaders

have taken part so far. They have

also launched ‘U-Lead’, a new

programme for first time non-

front-line managers to build core

fundamental leadership skills. This

is in addition to existing leadership

programmes, from ‘Stepping into

Management’ for new people

managers, to ‘Up-Lead’ for all

store and call centre managers.

24 Currys plc Annual Report & Accounts 2021/22

Great place to work

Progress in 2021/22

Strategy in action

Colleagues continued

Creating a culture of

communications and

engagement

We have run a comprehensive programme

of engagement events at all levels of the

organisation. Some highlights include:

On The Pulse colleague engagement

We conducted two On the Pulse Surveys

during 2021. Results from our May survey

demonstrated our commitment to engaging

colleagues which saw 20 questions

increase in score and a significant (8 point)

increase in colleague engagement and

double-digit improvements across two

of our three focus areas.

In October, these positive results continued:

• We continued to enjoy high engagement,

with a 78% response rate, with colleagues

leaving over 23,000 comments.

• We’re now above the external global

and retail benchmarks.

• We’re now seeing consistently high

engagement scores throughout Currys

with scores on 14 questions above the

global benchmark. Our eSat employee

satisfaction score for the Group (‘I am

happy working at Currys’) is once again

77, equalling our May score.

• Our colleagues in the UK & Ireland

increased their eSat score by one point

to 78. This puts them in the top 25% of

companies that are part of the global

benchmark.

In April 2022, the Nordics joined the

Currys On the Pulse survey and move to

more active listening. All business units are

included in the survey and approximately

13,000 colleagues were invited.

Kotsovolos already take part in the surveys.

Values Refresh

The three values – We Put Our Customers

First, We Win Together, We Own It – were

launched in October 2019 with the input of

over 7,000 colleagues. Since then, we’ve:

• continued to embed the values. Our

most recent colleague engagement

survey reported a score of 74 on the

question ‘People at Currys Live our

Values’ (above global benchmark).

• recognised individuals and teams who

are living our values through events such

as the annual Chairman’s Shield.

• engaged all colleagues in a ‘Values

refresh’ which was launched as part

of the Currys Brand launch in October

2021. Using a ‘values bot’, 2,350

colleagues took part online.

Currys Brand Launch

An engagement programme was

developed to build excitement around

the launch of the new Currys brand in

October 2021. There was huge colleague

engagement on our internal channel

(‘Workplace’) with thousands of posts

celebrating store rebranding, new uniforms

etc. Video content, microsites, Day one

colleague guides were also developed

to support the launch.

Virtual Peak 2.0

We held our second Virtual Peak event in

October 2021 which was open to all UK&I

colleagues. Highlights included:

• Over 3,000 colleagues tuned in live

to the launch of Virtual Peak 2.0.

• More than 10 hours of on demand

content.

• A Currys Café, which had over 5,500

visits from colleagues exploring the

best of our new brand.

• Our Amazing Technology exhibition,

which had over 33,500 interactions

between colleagues and 35 suppliers.

• The Chairman’s Shield awards, with over

1,500 colleagues watching live.

In Elkjøp Nordics, the annual ‘Campus’

event is a highlight of the year which sees

over 150 suppliers come together with over

5,000 colleagues over one month to build

skills and knowledge of new technology

and products. Building this capability is at

the heart of why our colleagues are seen

as trusted advisors by our customers.

Governance

Financial Statements

Investor Information

Strategic Report

Creating a culture of well-being

UK & Ireland. We’re proud of our

continued progress to place well-being

at the heart of our business. We’ve:

• seen a 13-point increase in well-being

through our colleague engagement

survey.

• up-skilled over 1,200 people managers

as mental health champions.

• continued to develop our ‘well-being

Corner’, which has been accessed by

20,000 colleagues.

• shared over 100 online weekly

well-being webinar sessions in

collaboration with our current partners.

• Integrated well-being into our review

process to ensure managers have

meaningful connections with their teams

throughout the year.

International

• Elkjøp Nordics: health insurance

is available for all colleagues who

work more than 80% of the time,

covering benefits such as specialist

appointments, diagnostics and

treatments. The business also organised

for psychologists to run online sessions

for colleagues, providing advice on

how to cope with stress, loneliness

and other challenges.

• Kotsovolos: a comprehensive well-

being programme called ‘Better

Me Better Teams’ which focuses on

physical, mental and financial fitness.

The programme provides practical

support in areas such as exercise,

healthy eating, mindfulness and

financial support.

Creating a culture of

Diversity and Inclusion

We’re at our strongest when we embrace

the full spectrum of society, regardless

of what we look like, where we come from,

or who we love. We’re proud of the steps

we are taking to make Currys an even

more inclusive place to work.

UK & Ireland. We’ve:

• conducted our first ever inclusion survey

with 6,000 responses helping shape

our ongoing inclusion action plans.

• listened and responded to colleague

feedback that inspired the creation

of a new Equality, Inclusion & Diversity

Dignity at Work Policy.

• designed new learning modules

to help managers create a more

inclusive environment.

• worked even more closely with our

existing partners such as ‘Everywoman’

and ‘Business in The Community’.

• became a founding member of

‘Diversity In Retail’ and are currently

investing in our internal talent pipelines

through participation in their Board

Readiness, Ethnic Future Leaders and

Senior Women Leadership programmes.

• continued to work closely with our Pride

at Currys LGBTQ+ colleague network

to celebrate equality.

International

• Elkjøp Nordics: Introduced a Diversity,

Equality & Inclusion policy for the

entire Elkjøp Group. Also signed

a partnership and collaboration

agreement with EqualityCheck, a

Norwegian/Nordic based organisation,

built to help companies create more

equal workplaces for all by combining

data-driven technology with third-party

domain expertise into a single solution.

• Kotsovolos: Signed the Diversity Charter

for Greek companies in May 2021.

Forums. We remain committed to ensuring

our colleagues have a voice. In UK&I, we

have 11 colleague forums representing

colleagues from across the organisation

and have played a key role across a

number of business priorities throughout

the year. A central International

Colleague Forum brings the existing

country forums into a single listening and

engagement forum for all colleagues.

Gender Pay. On 4 April 2022, we

published our annual Gender Pay Report.

Our combined Group data showed that

our comparative median hourly Gender

Pay Gap continues to track below the

ONS national average (15.4%) at 8.2%.

Similarly, year on year the median Gender

Bonus Gap decreased from 22.9% to

20.1%. You can read our report here

https://www.currysplc.com/media/

og4enx1y/d2996_currys_gender_pay_

gap_2_022_a4_v27.pdf

Number of employees as at 30/4/2022 Total Female Male

PLC Board 8 3 37.5% 5 62.5%

Executive Committee 8 2 25% 6 75%

Direct Reports of Executive Committee 65 22 34% 43 66%

All Employees 31,717 9,846 31% 21,871 69%

26 Currys plc Annual Report & Accounts 2021/22

Strategy in action

Omnichannel

Omnichannel is our way of bringing the strengths of stores and

online to all our customers, however they may be shopping

Omnichannel

Omnichannel is our strategy to create seamless journeys

across all channels, whether that is online, in our 830 stores

or using a combination of both channels, we will provide

customers an easy and connected shopping experience

across the full range of our products and services.

Our online business offers customers a 24/7 shopping

experience across our full range of products with the

convenience of delivery. Stores are places of discovery

and allow customers to see, touch and feel amazing

technology while getting trusted face-to-face advice

from our expert colleagues.

Omnichannel is the best of both worlds; customers in-store

can access our full range of products and have them

delivered to home meaning we are never out-of-stock for

these customers, our online customers can pick up products

in-store shortly after ordering, providing an immediacy that

online retailers cannot match, while ShopLive UK (our 24/7

service in the UK) allows our customers to get the trusted

face-to-face advice of our expert colleagues from the

comfort of their own homes.

The flexibility omnichannel provides is also what

customers prefer. Even through the pandemic, almost half

of UK customers used both stores and online during their

shopping journey for tech.

Improving the ease of shopping in both channels will help us

grow market share, while delivering the best of both worlds

will help us grow sales and improve gross margins.

Customers prefer

omnichannel

December UK&I 2021 Survey

(1)

Store customers cite the ability

to see, touch and feel products

before buying and the expert

advice as main reasons to shop

in-store. Online customers cite

convenience and availability

as main reasons for using that

channel. Providing both allows

us to serve all customers across

our markets.

35%

Online

only

46%

Both online

and

in-store

19%

In-store

only

(1) Source: Company information – Customer survey

of 1,290 UK&I customers in March 2022. Question:

Which of the following best describes how you

have browsed/shopped for electricals in the

last 12 months?

Governance

Financial Statements

Investor Information

Strategic Report

2021/22

2018/19

23k

18k

12k

2021/22

2020/21

2019/20

£1.0bn

Elkjop

Competitor 1

Competitor 2

Competitor 3

£1.4bn

£2.5bn

Currys

Competitor 1

Lots of

headroom;

Nordics at

64k-95k SKUs

In the Nordics,

customer

satisfaction was

very high (Happy

or Not at 90%)

Omnichannel starts with better retail basics

Online we are big…even without stores we would be clear market leader

UK&I online compared to

closest competitor

Nordics online compared to

closest competitors

Larger range

UK&I more than doubled in two years

Easier experience

Improved delivery and

collection experience

Investing in price

Clear price promise

Notes:

UK&I

Currys UK&I online retail sales, include

UK Order & Collect.

Total UK sales for Competitor 1, estimated

for financial year ending March 2022

Nordics

Elkjøp Nordic online retail sales, include

Order & Collect.

Total sales for Competitor 1, Competitor 2 and

Competitor 3. Significant part of Competitor 3

business is not online sales and including other

categories than electronics, but they don’t disclose

the breakdown. Competitor 1 sales including stores

and distribution business. Competitor 1 and

Competitor 3 use calendar years.

CSAT results are provided year-on-three-year,

representing the closest period undisrupted by

government enforced store closures in order to

provide users an accurate representation of

customer satisfaction on a comparative basis

UK Delivery CSAT UK Collection CSATUK&I Product Range

2021/22 Revenue (in £bn)

Easier experience

Regardless of channel, good retail starts with getting the basics right. That includes making sure we

have a large and relevant range of products, have a clear price promise and are delivering an easy

customer experience.

>100%

56%

47%

59%

90%

+12

+18

“You won’t find it

cheaper”

Never out

of stock

Get your product

right now

Help 24/7

28 Currys plc Annual Report & Accounts 2021/22

2021/22

2020/21

2019/20

2021/22

2020/21

2019/20

2021/22

2020/21

2019/20

865

849

824

773

735

630

552

524

479

447

375

368

361

358

314

309

8.5

8.2

7.6

7.5

6.6

6.5

6.4

5.8

5.6

5.5

2021/

2020/

201 9/

2018/

20 1 7/

2016/

2015/

2014/

2012/

2013/

Strategy in action

Omnichannel continued

Omnichannel: Giving customers the best of both worlds

UK&I online-in-store sales Order & Collect sales ShopLive UK

4.4/5

Customer rating

vs unassisted online

~5x

Conversion

>30%

AOV

Our UK&I store estate is now rightsized under one brand

Number of stores and total selling space at end of financial year

Dixons/PC World/Currys

Carphone Warehouse

Total selling space (m sq ft)

+118%

+18% +49%

UK&I Nordics

Governance

Financial Statements

Investor Information

Strategic Report

What we did this year

• Brand new currys.co.uk website launched and moved onto

the new Salesforce platform. Benefits include 3.5x faster site

speed, improved recommendation engine, intuitive cross-sell

and trade up, and enhanced funnel analytics.

• Next Generation Retail, our Nordic omnichannel platform went

live in all markets. This is a new online B2C and B2B platform

and includes the back-office connectivity of store sales,

store operations, call centre systems and direct distribution.

• Launch of new Colleague Hub in the UK&I to give access to

to-do lists, calendars, communications and reports.

• Our first store ranging trial using customer data to tailor the

range in two stores has demonstrated a strong uplift in store

sales with a halo impact on our online sales.

• In the UK, we created a stronger partnership with GXO this year,

simplifying our logistics operations by partnering with them for

both warehouse and transport logistics. This gives us a simpler,

clearer and faster logistics operation, with more integrated.

data and reporting as well as GXO’s expertise in this field.

What we will do next

• Upgrade currys.co.uk to include more personalisation and

a seamless end-to-end journey and adding account history

for each customer.

• Expand the Colleague Hub to increasingly guide and

personalise each customer’s in-store experience, making it

easier for the colleague to make the most out of everything

we know about that customer.

• Continue to focus on customer pain points and focus on

improving customer satisfaction at every stage of customer

journey.

• Add new warehouse space in Doncaster (UK).

• Build a new distribution centre in Jönköping (Sweden),

this will initially be a manual system, but will move to

semi-automated over time.

30 Currys plc Annual Report & Accounts 2021/22

Strategy in action

Customers for life

We’re changing from a business that just ‘sells boxes’ to anonymous

customers, to one that has deep customer relationships

Customers for life

As the leading technology retailer in all our markets,

with the ability to serve customers across both channels,

we have a significant opportunity to increase our share

of wallet.

This starts by using data to fuel CRM and personalisation.

We are building our customer data in two ways; first through

our Customer Club in the Nordics and Currys Perks in UK,

we are building a large data set on customers. Second,

we are starting the process of joining together disparate

customer bases to create a single view of our customers.

The combined insight from this will allow us to personalise

experiences for all customers and develop propositions

that customers value.

The propositions that customers value revolve around our

Services. We are uniquely positioned within tech retail to

help customers afford tech through credit, help them get

started with delivery, installation and set-up, help give

tech a longer life through protection, repair, trade-in and

recycling, and get the most out of tech through connectivity,

subscriptions and tutorials. These Services are profitable

on their own, but more importantly they help customers

make more sustainable choices and they drive increased

customer loyalty. We will evolve our Service propositions

to give us more chances to speak to more of our customers

more often and therefore increase loyalty and share

of wallet.

Over the medium term, growing our share of wallet drives

a higher margin as it lowers our net spend on acquiring

and retaining customers.

~80% of UK households shop

for electricals with us

(1)

But we only get a ~30% share

of their wallet

We have a high share of

customers but a low share

of wallet

(1) Unique identifiable households who have

shopped for electricals with Currys in the past

three years.

We don’t need to invest lots in acquiring

new customers…

…and significant headroom remains

to grow share of wallet with our

existing customers

80%

30%

Governance

Financial Statements

Investor Information

Strategic Report

6.8m

5.4m

3.2m

1.3m

2021/22

2020/21

2019/20

2018/19

+58%

2021/22

Club

Non-club

In the Nordics we have built a successful loyalty program

(1) Unique customer households who have purchased electricals within the last 12 months.

(2) Unique customers with whom we have an ongoing contractual relationship.

Successful rollout in the Nordics

# of customer club members

Clear customer benefits

Always discount on specific

product categories

VIP shopping

Club deals every month

Extended Buy & Try

Collaboration with streaming services

Higher engagement

Revenue per customer 21/22

Equivalent to more than

50% of Nordic households

being club member

Higher shopping frequency

Higher margins

We are bringing our disparate customer bases

together to create a single view of our customers

With this combined insight we can:

Personalise

experiences for

all customers

Develop

propositions

that reflect what

customers value

Use Services

to enable us to

keep talking to

customers

12.5m customers

(1)

1.5m customers

(2)

1.4m customers

8.5m customers

(2)

1.1m customers

(2)

In the UK, we have taken the first steps to bringing together our disparate data sets

32 Currys plc Annual Report & Accounts 2021/22

1.7m

1.4m

1.2m

0.9m

2023/24

target

2021/22

2020/21

2019/20

2018/19

16%

Strategy in action

Customers for life continued

We’re building on strengths across all stages of Services

Credit helps customers afford the technology they want and drives loyalty

Customers for Life – Credit

Active credit accounts in UK

# Accounts (m) Pink Line = Credit Adoption Rate (%)

Active credit accounts in UK

2021/22 – Group

12.4%

Sales through credit

3.2m

Credit customers

11.7m

Deliveries

1.4m

Installations

900k

Product set-ups

4.7m

Protection plans sold

in year

13.0m

Total Active Protection

Plans

1.7m

Repairs/year

103ktonnes

Recycled

1.2m

iD Mobile customers

Our Services help everyone enjoy amazing technology. We are in a unique position to be able to help

customers get technology products started, give them a longer life and get the most out of their technology.

Credit is a driver of loyalty – credit customers are 70% more likely to return than non-credit customers

88%

Credit

balances

unutilised

12%

Credit

balances

used

We help you

afford the

amazing tech

We help you

get started

We help give your

tech longer life

We help you

get the most out

of your tech

Governance

Financial Statements

Investor Information

Strategic Report

What we did this year

• Grew Nordics customer club to 6.8m members, +26%

year-on-year and representing 52% of Nordic households.

• Launched Currys Perks, our upgraded and rebranded CRM

tool, in the UK. At the end of the year, we had 11m customers.

• In the UK, a new data platform was set up, this will become

centre of our data ecosystem.

• Used Loyalty segmentation with our CRM to enable our first

personalisation trials.

• Trialled RepairLive which enables customers to get real-time

fixes for their laptop, book in a repair, or even arrange a return

for their tech over a live video call. They’ll get the same expert

advice as in store, making it easier and quicker to get kit back

up and running again.

What we will do next

• Build further enhanced credit propositions.

• Introduce more options on trade-in and recycling.

• Build on customer data platforms to increase personalisation.

34 Currys plc Annual Report & Accounts 2021/22

Section 172(1) statement

What this means

Capable and committed colleagues are the interface between the Company

and our customers and are critical to the long-term success of the Company.

The Board considers the needs of colleagues and how any decision will

impact them.

What this means

The Board ensures that any decision is made in the context of the need to

be a responsible partner, to collaborate effectively with suppliers and to

maintain successful relationships with customers. The Board seeks to ensure

that the Company has strong relationships with external stakeholders

including its regulators, banks and the external Auditor.

What this means

The Board considers how any decision will affect the communities in which

the Group operates together with any environmental implications.

What this means

The Board challenges whether any decision made is the ‘right thing to do’

to ensure a fair outcome for all stakeholders.

What this means

The Board challenges what impacts any decision will have on the Company’s

stakeholder groups and ensures that both the immediate implications and

possible cumulative outcomes are considered.

What this means

The Company’s shareholders include institutional investors and retail

shareholders. In considering the impact decisions have on shareholders,

the Board takes this into account and ensures that all shareholders have

equal access to information and engagement opportunities.

Our stakeholders

Section 172(1) of the Companies Act 2006 requires each director to act in the way he or she considers, in good faith, would

be most likely to promote the success of the Company for the benefit of its members as a whole and in doing so have regard

(amongst other matters) to the:

This statement explains how the Board has embedded stakeholder considerations across decision-making and, in particular, how

directors have had regard to the factors included in section 172(1) in addition to other factors relevant to any decision being made.

This report sets out the Company’s

approach to stakeholder management

Likely consequences of any

decisions in the long term.

Interests of the company’s

employees.

Need to foster the company’s

business relationships with

suppliers, customers and others.

Impact of the company’s

operations on the community

and environment.

Desirability of the company

maintaining a reputation for high

standards of business conduct.

Need to act fairly as between

members of the company.

Governance

Financial Statements

Investor Information

Strategic Report

Section 172(1) statement

Our approach to stakeholder

management

There are different processes across the business

to ensure stakeholder considerations are embedded

into the Group’s decision-making. A clear corporate

governance structure is in place which, together

with the Group’s Delegated Authority Policy,

ensures that business decisions are made by

the appropriate people and in the appropriate

forum (in accordance with the terms of reference

of that forum). The supporting documentation for

each Board and committee meeting includes, for

reference, a summary of section 172(1) responsibilities

immediately after the meeting agenda. To ensure that

the impact on stakeholders is duly considered, Board

and committee decision paper templates include

mandatory fields for papers’ authors to include an

impact assessment on each stakeholder group.

The Board acknowledges that decisions made

will not necessarily result in a positive outcome

for every stakeholder group. By considering the

Group’s purpose, vision and values together with

its strategic priorities and having a process in place

for decision-making, the Board does, however, aim

to make sure that all decisions are considered and

made following reflection across a broader view

of stakeholder considerations.

This report includes examples, for each of the

Company’s key stakeholder groups, of the matters

that the Board considered during the year, including

how decisions were reached and stakeholder

considerations that were central to discussions

and outcomes.

36 Currys plc Annual Report & Accounts 2021/22

Our stakeholders

Stakeholder management

CASE STUDY:

Environment, Social and

Governance (‘ESG’) strategy

During the year the Board

discussed and challenged

the ESG strategy and the

extent to which it remained

fit for purpose.

The Board considered the function that

the Group performs for Our Customers,

in providing technology that helps people

stay connected, productive, healthy,

and entertained. The Board agreed

that the ESG strategy had to reflect

that sustainability considerations are

increasingly important to customers.

The Board considered the opportunities

that the Group has to support customers

in making more sustainable choices

by clearly communicating the ‘Green’

credentials of products (such as energy

efficiency and water use) and helping them

give their technology a longer life through

trade-in, protection, repair and recycling.

The Group holds an annual ‘Peak’ event

for Our Colleagues prior to the busy

Christmas trading period. This event is used

to update colleagues on the product

proposition and the strategic priorities

for the business. The Peak event held in

October 2021 was held virtually, enabling

the attendance of colleagues from

across the Group. The event included

updates on environmental and charitable

initiatives in the Group to

engage colleagues and to inspire them to

think of additional ways in which they can

support these goals. The Board discussed

the need to empower colleagues to

deliver improvements and the impact of

the social purpose of the business on

colleague engagement. During the year

the Remuneration Committee approved

the addition of environment metrics into

the 2021/22 bonus plan. ESG metrics now

make up a significant proportion of the

Company bonus scorecard to ensure

that colleague remuneration is aligned to

‘doing the right thing’.

The Board considered the appropriate

ESG strategy in context of Our

Communities and Environment.

This included the social purpose that

underpins the Group vision; We Help

Everyone Enjoy Amazing Technology,

and the role the Group can play using its

scale and innovation to contribute to key

societal issues. The Board agreed that the

ESG strategy needed to include specific

plans to reduce the impact of the Group

on the environment in both our operations

and our wider value chain. The Group has

committed to achieve net zero

(1)

emissions

by 2040. The Board agreed that the ESG

strategy should accelerate the Group

providing products that help customers

save energy, reduce waste, and save

water. The Board considered the wider

community as part of an evaluation of the

Group’s charitable partnerships to assess

how the Group can most effectively make

a charitable contribution including to bring

the benefits of amazing technology to

those who might otherwise be excluded.

Collaboration with Our Suppliers is

critical to reduce the environmental

impact of products sold within the

Group. The Board agreed that the ESG

strategy had to include a programme of

activities involving suppliers, partners,

manufacturers, and colleagues

working towards a common goal to

offer more sustainable products

and ensure responsible sourcing and

ethical standards across the Group’s

supply chain.

The Board recognised that there has been

increased interest from Our Shareholders

on the detailed plans supporting ESG

initiatives. The Board agreed that the

Group would need to enhance current

ESG disclosures and reporting and share

more information on existing recycling

and other ESG initiatives in the business.

There was a presentation on ESG at the

Capital Markets Day held in November

2021 and this was supported by ESG

investor roadshows. During the year the

Group has been recognised externally

by various organisations in relation to the

ESG approach. The Board agreed that

helping customers give their technology

a longer life through trade-in, protection,

repair, and recycling is a proposition the

Group is uniquely positioned to offer.

It will be both attractive to customers

and position the Group as a long-term

sustainable business.

Further information on the ESG strategy

is available in the Sustainable business

report on page 40.

(1) Net zero is defined in the Glossary and definitions

section on page 245.

Governance

Financial Statements

Investor Information

Strategic Report

Our Customers

How we engage

• In-store.

• Online.

• ShopLive UK.

• Customer app.

• Customer care centres.

• Email.

• Post-sales survey.

• Media including social media.

Stakeholder focus

• Product availability.

• Product range.

• Product value and affordability.

• Product sustainability and ethical sourcing.

• Customer journey experience.

• Services and Credit.

• Advice and support.

• Choice of how to purchase; online or in-store.

• Seamless delivery experience.

Our approach to engagement and how the Board is kept informed

• The Board receives an update on customer satisfaction metrics each

week. Root cause analysis is carried out to understand and resolve

any concerning trends. A Voice of the Customer dashboard is in place

for UK & Ireland and the Nordics region has a separate ‘HappyOrNot’

satisfaction measure. In June 2021 the Board received a more

detailed UK & Ireland customer satisfaction scores update including

customer experience highlights for 2020/21 and an update on how

key customer ‘pain points’ had been identified and addressed. A

deep dive on Nordics in April 2022 included an update on customers.

• Verbatim customer feedback is captured from thousands of

customers each week to gain insights and help the business better

understand customer expectations and concerns. Machine learning

and AI solutions are used to quantify the sentiment of the comments.

This information is reviewed internally and used to generate

improvements to the customer experience. The Board continued to

receive a synopsis of the results of this feedback during the year

and these insights into the customer experience are considered by

directors as part of Board decision-making.

• ShopLive UK provides customers in the Nordics and UK & Ireland with

an in-store experience from their own homes via video link with sales

colleagues. This functionality enables customers to receive advice on

laptops, TVs, washing machines and refrigeration products to ensure

that customers, including the most vulnerable, can benefit from store

colleagues’ expertise remotely. The Board receives regular updates

on the performance of ShopLive UK.

• During the year, the Board considered customer feedback as part

of the decision to approve proposals to enhance the customer

experience including a three-year transformation plan for UK &

Ireland Customer Management Centre and the establishment of

a new Nordic distribution centre that would substantially reduce

the CO

impact of distribution.

CASE STUDY:

Board decision on UK

logistics operations

During the year the Board considered the

interests of the Company’s stakeholders

during a review of the logistics operations

in UK.

The Board considered whether an enhanced in-house model or

an outsourced model for warehouse and transport operations

could best deliver a clearer, simpler, faster Supply Chain and

Services Operation in the UK that would benefit the Company’s

key stakeholder groups.

The Board considered the needs and expectations of

OurCustomers and the ability of each model to deliver

greater customer choice, availability and fulfilment options,

and meet customer promises. The Board agreed that increasing

functionality in respect of speed, choice and convenience

would be critical to meet customer expectations.

The Board agreed that the use of technology and

innovation to continuously improve the working environment

for OurColleagues would be beneficial for colleague

engagement and well-being in addition to increasing the

time colleagues have to offer a customer-centric service.

The risks of each proposal were considered together

with the impact on Our Communities and Environment.

The accountable Executive Committee member for the logistics

operations is the Chief Operating Officer who attended ESG

Committee meetings during the year and monitors the Group’s

progress against emissions and e-waste targets and other

ESG metrics.

The Board considered the needs of Our Suppliers and

Partners relevant to the logistics operations and assessed

the proposals in terms of the efficiency improvements including

improved stock management, forecasting and capacity and

supplier management.

The customer, colleague and financial benefits of the proposals

were considered together with costs to evaluate the option that

would provide the best overall value for Our Shareholders

and support the long-term sustainable success of the business.

Following consideration of the proposal, including the impact

on the Company’s key stakeholder groups, the Board approved

that the business enter into an agreement with GXO logistics to

run the Company’s key warehouses and distribution centres and

transport operations.

38 Currys plc Annual Report & Accounts 2021/22

Our stakeholders

Stakeholder management continued

Our Communities and EnvironmentOur Colleagues

How we engage

• Surveys and forums.

• Website, reports and media including social media.

• Engagement meetings and events.

• Charity and supplier partnerships.

• Multi-stakeholder collaborations.

Stakeholder focus

• We Help Everyone Enjoy Amazing Technology.

• Being a responsible contributor to society.

• Being a good employer.

• Having sustainable business practices and minimising impact

to the environment and addressing climate change.

Our approach to engagement and how the Board is kept informed

• An Environment, Social and Governance (‘ESG’) Committee is in place

to oversee all charitable and ESG activities carried out across the

Group. Representatives from all countries attend this forum and provide

updates. The ESG Committee is attended by a non-executive director

of the Board, Andrea Gisle Joosen, is chaired by the General Counsel

and Company Secretary and reports into the Executive Committee.

More information is available on page 113.

• The Company has a Sustainable Business team that leads

the management of the Group’s charitable partnerships and

environment initiatives.

• The Company was awarded the highest available rating, an A, by

global environmental non-profit CDP, for its leadership in corporate

sustainability in tackling climate change, putting it in the top 1.5% of

13,000 companies for climate change disclosure.

• Through design, repair, recycling and reuse the Company is working to

improve its use of resources and create circular business models. The

Company will use its scale and expertise to help drive industry action

and in November 2021 joined the Circular Electronic Partnership (CEP),

who maximise the value of components, products and materials

throughout their lifecycle.

• The Company seeks to help accelerate industry change by working

with other retailers and suppliers to share best practice and reduce

the industry’s reliance on plastic packaging. For example, unrestricted

access has been given to Product Packaging Guidance to share best

practice with the wider industry. This guide outlines to suppliers and

other retailers preferred materials to use and which materials to avoid

based on data sources and engagement with a number of specialist

organisations and experts.

• Through a £1m donation to found the Digital Poverty Alliance, the

Company has equipped 1,000 teachers and teaching assistants in the

UK’s poorest communities with the technology and support they need

to deliver high-quality teaching. These teachers are in turn forming a

community of ideas and best practice to help create digital inclusion

for everyone.

• The Board received comprehensive ESG updates in September and

December 2021 and regular reporting on sustainability and charitable

activities is included within the CEO report at Board meetings. The Board

agreed an approach for a new ESG strategy during the year and this

included consideration of the needs of key stakeholder groups.

How we engage

• Internal communications – Executive Committee member updates,

workplace intranet, emails, ‘Ask Alex’ Group Chief Executive interactive

videocalls, interactive calls hosted by Executive Committee members,

team meetings, individual meetings with line managers.

• Colleague surveys – engagement and for feedback on specific topics

such as hybrid working.

• Events – annual Peak event – (online during 2021), campus event for

Nordics region, training at The Academy@Fort Dunlop.

• Colleague listening forums.

• Inclusion and Diversity Forum.

Stakeholder focus

• Company culture and values.

• Well-being.

• Reward.

• Benefits.

• Flexible working.

• Health and safety.

• Training and development.

• Inclusion and diversity.

• Company social purpose and sustainability.

Our approach to engagement and how the Board is kept informed

• New store-based colleagues that join the business in the UK attend

a training event at The Academy@Fort Dunlop before they start work

serving customers in stores. Similar training is also provided in the Nordics

and Greece. A separate induction programme is in place for corporate

colleagues.

• A central ‘People Place’ intranet site is available to UK & Ireland

colleagues and provides access to all HR policies and guidance and

allows colleagues to log any issues or questions and a ‘well-being

corner’ Intranet site is available to support colleagues.

• A central International Colleague Forum is in place to unify the long-

term existing country forums into a single listening and engagement

forum for all colleagues. Tony DeNunzio, the Deputy Chair and Senior

Independent Director, attends these forum meetings with the Chief

People, Communications and Sustainability Officer, Paula Coughlan.

Andrea Gisle Joosen, our Sweden based Non-Executive Director,

attends the Nordics Colleague Forum meetings. The Board received

an update on colleague listening at a Board meeting in April 2022.

• The annual Peak event was held virtually during November 2021 to

provide colleagues with strategic updates from the Executive Committee

members and to provide colleagues with information and training. Topics

included strategic plans, ESG updates and the Company values.

• Regular colleague surveys are used to seek feedback which is then shared

with the Board and used in decision-making. Surveys seek feedback on

engagement and include ESG questions and specific surveys have been

used during the year to assess colleagues’ views on hybrid working and

office facilities to support the design of a new hybrid model of working.

• Directors visit stores and meet colleagues in person. Whilst these visits

were less frequent than previously due to Covid, the Board visited the

UK & Ireland distribution centre in Newark during March 2022. This visit

included meeting many colleagues from Supply Chain and Services

Operations, receiving updates on current priorities for the team as well

as new areas of innovation.

• A Colleague Shareholder Award scheme is in place to allow colleagues

to share in the success of the business. Further details of this scheme are

available in the Remuneration Report on pages 114 to 147.

• Board and committee paper authors include their contact details on

papers submitted to the directors and directors frequently contact them

directly when they have queries on papers or are interested to receive

more detail.

Governance

Financial Statements

Investor Information

Strategic Report

Our ShareholdersOur Suppliers and Partners

How we engage

• Results announcements and presentations.

• Annual report and accounts.

• Annual general meeting.

• Investor roadshows.

• Shareholder meetings.

• Company website.

• Registrar contact.

• Consultation with major shareholders on key topics.

• Capital Markets Day.

Stakeholder focus

• Ensuring the long-term sustainable future of the business.

• Financial and share price performance.

• Dividend policy.

• Current trading.

• Business strategy and vision.

• Director remuneration.

• Shareholder communications and engagement.

• ESG issues.

Our approach to engagement and how the Board is kept informed

• The Board receives updates from the Investor Relations team at every

Board meeting. These include updates on any material changes to

the composition of the shareholder register, a summary of investor

interactions that have taken place during the period as well as

upcoming interactions and a summary of investor questions received,

and topics discussed.

• The Investor Relations team manages a programme of meetings

with the top 30 shareholders and most of these meetings are also

attended by at least one Board director. For other shareholders,

the primary point of contact is the Company’s registrar, although

any matters can be escalated to either the Investor Relations or

Company Secretariat teams as appropriate.

• A Capital Markets Day was held in November 2021 to provide

shareholders with an update on the Group transformation and

strategy. The event was attended by most of the Company’s

largest shareholders and the presentations are available on our

website at www.currysplc.com. This included a presentation on ESG

and was supported by ESG investor roadshows.

• The Chair of the Board requests an engagement meeting with each

of the top 30 shareholders of the Company on at least an annual

basis to discuss any topics of interest to the shareholder.

• The Chair of the Remuneration Committee also contacted the

Company’s largest shareholders during the year to consult with

them in advance of the Remuneration Policy being submitted to

shareholders for approval at the Company’s Annual General

Meeting in 2022.

How we engage

• Formal engagement strategy including regular visits and meetings.

• Supplier relationship management team.

• Supplier questionnaires.

• Due diligence process for new suppliers.

Stakeholder focus

• Strong customer demand.

• Good collaboration.

• Reliability.

• Value.

• Health and safety.

• Compliance.

• Effective communications.

• Sustainability and ethical sourcing.

Our approach to engagement and how the Board is kept informed

• The Board receives regular feedback on substantive supplier matters

via the Group Chief Executive and the Chief Commercial Officer.

• The Group Chief Executive participates in regular meetings with

the Group’s largest suppliers and receives regular updates on all

suppliers from the Chief Commercial Officer.

• The Commercial team put in place a formal engagement strategy

with each large supplier. This strategy is customised in each case

but includes regular meetings and calls between the Group Chief

Executive and their counterpart at the supplier company and

between the Chief Commercial Officer and their counterpart. This

is supported by a team of colleagues engaging regularly to assess

progress against agreed business plans.

• A suite of policies and standards are in place to ensure that suppliers

and partners adhere to high ethical standards including prevention

of modern slavery and anti-bribery. More information on this is

available in the Sustainable business report on page 56.

40 Currys plc Annual Report & Accounts 2021/22

Sustainable business

Our approach

Our material issues What we do Link to UN Sustainable Development Goals What we did this year Achievements What we will do next

Circular economy

Objective: We will improve our use

of resources and create circular

business models.

Read about our focus on circular

economy on pages 42-45.

• We are a leader in extending the life of technology

through repair, recycling and reuse.

• We work together with manufacturers and suppliers

to offer customers more sustainable products.

• Joined the Circular Electronics Partnership

(‘CEP’) which brings together experts, business

leaders and global organisations to set a

vision and roadmap to a circular economy

for electronics by 2030.

• Launched our new UK & Ireland Services

strategy – Giving Tech Longer Life – and ran

our first ever financial recycling incentive

‘Cash for Trash’ for customer e-waste in the UK.

• Elkjøp took part on the Board of the industry’s

joint effort Ombrukt (Re-used) through the

industry association Elektronikkbransjen.

• Kotsovolos increased the collection of

e-waste for recycling and reuse by 25%.

103k

tonnes e-waste collected across our Group

for reuse or recycling

1.7m

repairs across our Group to keep

tech working

13m

active care services and tech insurance plans

across the Group

• Utilise our scale with brands to develop,

scale up and promote circular economy

opportunities for our products and make it

more affordable for customers to upgrade

their technology.

• Launch proof of concept projects as part

of our UK & Ireland Services strategy.

• Improve our pre-loved offering.

• Continue to expand our e-waste collection

services.

• Widen our product trade-in capabilities.

• Continue to work with the CEP and its

members to help move the electronics

sector towards a more circular economy

by 2030.

Climate change

Objective: We will achieve

net zero

(1)

by 2040.

Read about our focus on climate change

on pages 46-51.

• We are reducing our impact on the environment

not only through the energy and resources used by

our operations, but also in our wider value chain.

• We report our energy and greenhouse gas

(‘GHG’) emissions publicly, respond to the CDP

questionnaire on Climate Change and support

the Task Force on Climate-related Financial

Disclosures (‘TCFD’) and its recommendations.

• Achieved an ‘A’ rating for CDP.

• Assessed the impact of key climate risks

and opportunities for our operations.

• Increased the procurement of renewable

electricity across the Group.

• Met and exceeded our colleague bonus

scorecard target on Scope 1 and 2 emissions

reduction.

• Increased our focus on environmental

messages in our customer and product

messaging.

Currys’ score for climate change in CDP

31%

reduction in Scope 1, 2 and 3 emissions

against a 2019/20 baseline

• Continue to take steps to reduce emissions,

including trialling electric and low-carbon

alternative fuelled vehicles.

• Continue to increase our disclosure and

publish a net zero roadmap.

• Share best practice on climate – related

risk management and monitoring across

the Group.

• Assess the impact of key climate risks

and opportunities of our supply chains.

Our communities

Objective: We will help eradicate

digital poverty.

Read about our communities

on pages 52-55.

• We bring technology to everyone everyday.

• We partner with charitable organisations to bring

the benefits of amazing technology to those who

might otherwise be excluded.

• Supported the Digital Poverty Alliance (‘DPA’)

to set out its strategy for the next two years to

convene, compel and inspire collaboration

within the UK community to lead sustainable

action against digital poverty.

• Supported Age UK to develop and launch

21 Digital Support Guides on topics older

people identified as being in most need of

to help them access and enjoy technology.

• Continued to support people to enjoy

amazing technology through our Kotsovolos

Second Home programme and the work of

The Elkjøp Foundation.

• Provided humanitarian aid through the

Red Cross and supported refugees in

our local communities.

£350k+

raised for our two year partnership with Age UK

£400k+

committed by Elkjøp to number of long-term

strategic partnerships to strengthen the

ability to fight digital exclusion

1,000+

Kotsovolos colleagues from stores, offices,

warehouses and distribution centres

participated in Good Deed Day activities

• Work with Age UK to support the successful

delivery of a tablet loan scheme, one-to-

one support and awareness raising sessions

for four local Age UKs to help enable older

people to get and stay connected to their

loved ones through tech.

• Work with the DPA to launch a Tech4Families

project to support vulnerable families in

need with life changing access to technology.

• Continue to support people to enjoy

amazing technology through our Good

Deed Day, relaunching our Kotsovolos

Second Home programme and

The Elkjøp Foundation.

• Establish Group principles and policies

for Social Impact, and share best practice.

Our vision, to help everyone enjoy amazing technology, has a powerful social purpose

at its heart. We believe in the power of technology to improve lives, help people stay

connected, productive, healthy and entertained. We’re here to help everyone enjoy

those benefits and with our scale and expertise we are uniquely placed to do so.

We are committed to operating a responsible business by understanding stakeholder expectations and best practice. During the year,

we reviewed our Sustainability and Social Impact strategy to ensure this continued to reflect those issues that are most important

for our business, our stakeholders and our value chain. We identified three material issues that we are now focused on and will drive

meaningful difference on through long-term objectives. We report our progress against these three material issues alongside updates

on how our work is underpinned by a strong foundation of responsible sourcing, corporate governance and being a good employer.

An Environment, Social and Governance (‘ESG’) Committee is in place to oversee all ESG activities carried out across the Group.

Read the report from our ESG Committee on page 113.

(1) Net zero is defined in the Glossary and definitions section on page 245.

Governance

Financial Statements

Investor Information

Strategic Report

Our material issues What we do Link to UN Sustainable Development Goals What we did this year Achievements What we will do next

Circular economy

Objective: We will improve our use

of resources and create circular

business models.

Read about our focus on circular

economy on pages 42-45.

• We are a leader in extending the life of technology

through repair, recycling and reuse.

• We work together with manufacturers and suppliers

to offer customers more sustainable products.

• Joined the Circular Electronics Partnership

(‘CEP’) which brings together experts, business

leaders and global organisations to set a

vision and roadmap to a circular economy

for electronics by 2030.

• Launched our new UK & Ireland Services

strategy – Giving Tech Longer Life – and ran

our first ever financial recycling incentive

‘Cash for Trash’ for customer e-waste in the UK.

• Elkjøp took part on the Board of the industry’s

joint effort Ombrukt (Re-used) through the

industry association Elektronikkbransjen.

• Kotsovolos increased the collection of

e-waste for recycling and reuse by 25%.

103k

tonnes e-waste collected across our Group

for reuse or recycling

1.7m

repairs across our Group to keep

tech working

13m

active care services and tech insurance plans

across the Group

• Utilise our scale with brands to develop,

scale up and promote circular economy

opportunities for our products and make it

more affordable for customers to upgrade

their technology.

• Launch proof of concept projects as part

of our UK & Ireland Services strategy.

• Improve our pre-loved offering.

• Continue to expand our e-waste collection

services.

• Widen our product trade-in capabilities.

• Continue to work with the CEP and its

members to help move the electronics

sector towards a more circular economy

by 2030.

Climate change

Objective: We will achieve

net zero

(1)

by 2040.

Read about our focus on climate change

on pages 46-51.

• We are reducing our impact on the environment

not only through the energy and resources used by

our operations, but also in our wider value chain.

• We report our energy and greenhouse gas

(‘GHG’) emissions publicly, respond to the CDP

questionnaire on Climate Change and support

the Task Force on Climate-related Financial

Disclosures (‘TCFD’) and its recommendations.

• Achieved an ‘A’ rating for CDP.

• Assessed the impact of key climate risks

and opportunities for our operations.

• Increased the procurement of renewable

electricity across the Group.

• Met and exceeded our colleague bonus

scorecard target on Scope 1 and 2 emissions

reduction.

• Increased our focus on environmental

messages in our customer and product

messaging.

Currys’ score for climate change in CDP

31%

reduction in Scope 1, 2 and 3 emissions

against a 2019/20 baseline

• Continue to take steps to reduce emissions,

including trialling electric and low-carbon

alternative fuelled vehicles.

• Continue to increase our disclosure and

publish a net zero roadmap.

• Share best practice on climate – related

risk management and monitoring across

the Group.

• Assess the impact of key climate risks

and opportunities of our supply chains.

Our communities

Objective: We will help eradicate

digital poverty.

Read about our communities

on pages 52-55.

• We bring technology to everyone everyday.

• We partner with charitable organisations to bring

the benefits of amazing technology to those who

might otherwise be excluded.

• Supported the Digital Poverty Alliance (‘DPA’)

to set out its strategy for the next two years to

convene, compel and inspire collaboration

within the UK community to lead sustainable

action against digital poverty.

• Supported Age UK to develop and launch

21 Digital Support Guides on topics older

people identified as being in most need of

to help them access and enjoy technology.

• Continued to support people to enjoy

amazing technology through our Kotsovolos

Second Home programme and the work of

The Elkjøp Foundation.

• Provided humanitarian aid through the

Red Cross and supported refugees in

our local communities.

£350k+

raised for our two year partnership with Age UK

£400k+

committed by Elkjøp to number of long-term

strategic partnerships to strengthen the

ability to fight digital exclusion

1,000+

Kotsovolos colleagues from stores, offices,

warehouses and distribution centres

participated in Good Deed Day activities

• Work with Age UK to support the successful

delivery of a tablet loan scheme, one-to-

one support and awareness raising sessions

for four local Age UKs to help enable older

people to get and stay connected to their

loved ones through tech.

• Work with the DPA to launch a Tech4Families

project to support vulnerable families in

need with life changing access to technology.

• Continue to support people to enjoy

amazing technology through our Good

Deed Day, relaunching our Kotsovolos

Second Home programme and

The Elkjøp Foundation.

• Establish Group principles and policies

for Social Impact, and share best practice.

Engagement

Read about our engagement with key

stakeholder groups on pages 34-39.

Colleague

Read about our focus on

colleagueengagement to create a

happier, healthier and more productive

workforce, united through our values and

culture on pages 18-25.

Risks

Information on our Group Principal Risks,

which includes ESG, on pages 58-64.

Information on our activities is

also available on our website.

www.currysplc.com/sustainable-business

UN Sustainable Development Goals

Read more about the 17 UN Sustainable

Development Goals at:

https://sdgs.un.org/goals

42 Currys plc Annual Report & Accounts 2021/22

Sustainable business

Circular economy

We will improve our use of resources

and create circular business models

Our relationship with tech needs to change and as the #1 tech retailer in all the markets we

operate in, we’re uniquely placed to lead the way in changing this relationship. At Currys

we don’t just sell amazing technology; we save it too. We believe there’s a far better way –

better for you, better for us, better for communities and better for the planet. And that

better way is to give technology a longer life.

Amazing technology

We know our customers are looking

to reduce their impact on the

environment, and it’s our job to make

that easier while also ensuring we

reflect guidelines from consumer

authorities who are intensifying their

work to stop greenwashing – where

something is deemed to have been

conveyed as more sustainable than

it really is.

We help customers make more sustainable

buying decisions: our in-store and online

‘Go Greener’ events promote the attributes

of the products and services we sell in

the UK & Ireland that save energy, reduce

waste and save water.

In 2021/22 Elkjøp launched several

campaigns aimed at helping consumers

take care of their products. With

Electrolux the campaign ‘Make it Last’

encouraged consumers to take better

care of their clothing in washing so they

may last longer and with BSH the message

was how to avoid food waste. Elkjøp also

offer products with strong credentials

such as Fairphone – known as the most

sustainable alternative for mobile phones

– and the Acer Vero PC with a lot of

extraordinary sustainability features,

such as easiness to dismantle and high

content of recycled plastic.

Care & Repair

There’s no feeling quite like helping

a customer find some new tech that

suits their needs. But keeping their tech

working is important too, and it’s an

area of focus we’re really proud of.

We offer a range of services to enable

a longer life of tech.

In the UK & Ireland our 1,300-person

repair team processes and repairs over

800,000 products a year. Elkjøp also

repair over 800,000 products each year,

and lead the way on electronic repairs

in Norway.

Through extended warranties, technical

support and online tips and tricks we help

our customers take care of their tech.

Trade-in

We help customers make the most of

their tech, but when they are finished

with it our customers can trade-in their

unneeded products so that they can

have a longer life.

We offer trade-in for key tech items and

we’re increasing our focus on trade-in,

where we offer money for old devices

that are then given new life elsewhere.

Devices can be sold as pre-loved, broken

down for reusable parts or provided to

those without access to their own.

1.7m

repairs completed across our

Group, ensuring customers can

continue to enjoy their amazing

technology

103k

tonnes of e-waste collected

for reuse and recycling

£3m

saved from our parts harvesting

operation in our UK and Ireland

Customer Repair Centre, reducing

the demand for new parts and

lead time on repairs

12k

items provided for reuse

Key facts

As part of the Currys rebrand we enabled old uniforms

to be repurposed

Our recycling partner shredded and de-branded items which were then made into

2,000 cushions to be sold via our charity partner Age UK and 500 sleeper suits

which we donated to charities to distribute to homeless people. Anything not able to

be used in one of these ways was sent to an energy recovery plant, avoiding landfill.

* We engaged KPMG LLP to undertake independent limited assurance under ISAE (UK) 3000 and ISAE 3410 for selected energy

consumption, e-waste and GHG emissions which have been highlighted with an *. For more details of the scope of their work,

please refer to their assurance opinion on www.currysplc.com.

Governance

Financial Statements

Investor Information

Strategic Report

We give tech a longer life

Choose, afford, enjoy

Discover and Choose

Afford

Delivery and Installation

Set up and connectivity

Protect

Maintain

Product packaging

We’re working to reduce product

packaging, and we’ve committed

to making all our own label and

licensed brand packaging reusable

or recyclable by 2023.

At the end of 2021/22, 99% was

recyclable, with 76% recyclable at

kerbside. We remain committed to finding

solutions that reduce environmental

impact whilst also protecting the product

from damage.

We encourage suppliers to eliminate

unnecessary plastics and packaging

and proactively work with suppliers of

own label and licensed brand products

to reduce packaging. Recent initiatives

have included trials that have reduced

the amount of plastic packaging on

refrigeration products by up to 90% and

on an own label microwave by 90% and

feedback has been encouraging. We

have also rolled out changes such as

swapping polyethylene terephthalate

(PET) plastic blister trays for paper trays

and removing single use items such as

cable ties and plug pin covers.

As a result in 2021/22 we removed 2.23m

items of plastic packaging from own label

and licensed brand products, almost

40 tonnes. Since the start of the initiative

in 2019 we have removed over 4m pieces

equivalent to over 80 tonnes.

Collaborating with others

To increase our impact, we are helping

to accelerate industry change by

working with other retailers and

suppliers to share best practice and

reduce the industry’s reliance on

plastic packaging.

For example, we have given unrestricted

access to our Product Packaging

Guidance to share best practice with

the wider industry. This guide outlines to

suppliers and other retailers preferred

materials to use and which materials

to avoid based on data sources and

engagement with a number of specialist

organisations and experts.

Read our Packaging Guidance

on our website at www.currysplc.com

Help our customers

recycle packaging

In the UK & Ireland, we also offer our

customers a free packaging recycling

service when we deliver and unbox

large household appliances.

It’s resulted in over 10,000 tonnes of

packaging being retrieved. In fact,

we’re one of the largest recyclers of

polystyrene in the UK, recycling 14.5% of

all post-consumer polystyrene recycled

across the country. This market-leading

approach to recycling polystyrene led us

to launch the first polystyrene recycling

services in our UK stores for customers

who purchase a TV from store. It allows

a customer to return all the packaging

from their new purchase to any Currys

store. This allows the polystyrene, which

currently isn’t collected at kerbside for

recycling, to be recovered and processed

into something new.

Looking ahead

In 2022/23 we will carry out further trials

on large white goods and work with

suppliers to investigate options to get

used packaging and other raw materials

back to them for circular production.

Repair

1.7m

product

lifespans

extended

through repair

1,654

people in our

repair team

across the

Group

Reuse and recycling

retail recycler

of tech in UK

103k

tonnes of electrical

reuse and recycling

>12k

products provided

for reuse

Trade-in and resale

145k

customer

products

collected

through

trade-in

255k

used and

refurbished

products sold in

the UK & Ireland

New products

Recycled components

used to build new products

44 Currys plc Annual Report & Accounts 2021/22

Sustainable business

Circular economy continued

E-waste is among the fastest growing

environmental problems in the world

At Currys we don’t just sell amazing technology, we save it too. We help repair, recycle,

refurbish and donate unwanted tech. It’s all part of changing our relationship with tech

and giving it a longer life.

Collecting used tech

We help customers make the most of

their tech, but when they are finished

with it, our customers can trade-in or

hand over their unneeded products

so that they can have a longer life.

Currys have worked on responsible

recycling for many years. To maintain

our focus, the collection of e-waste

for recycling and reuse is one of two

environmental metrics introduced into

our annual bonus scorecard in 2021/22.

We offer trade-in for key tech items.

Elkjøp and Currys are increasing their

focus on trade-in, where we offer gift

cards or money for old devices that are

then given new life elsewhere, or recycled.

We offer recycling collection services of

redundant products when a new one is

delivered, as well as free in-store drop

off for products across the Group. In

2021/22 we collected 103k tonnes of

e-waste from customers. The waste is

collected by local recycling partners,

handled properly, and recycled or

reused to help tech live on and on.

While larger electronic products such as

washing machines and TVs are commonly

collected, there is a challenge to collect

smaller electronic devices such as

cables, small appliances and computing

accessories for reuse and recycling.

Mobile phones, tablets and other devices

with stored data often remain with

customers due to a lack of awareness

on how data is handled before recycling.

Our aim is to make it easy and normal

for all electronics to be recycled. For

example, in the UK Currys promoted

recycling through its ‘Cash for Trash’

month-long promotion. This resulted in an

increase of 98 tonnes of small electricals

being recycled and an uplift in our trade-

in service as the promotion launched.

By raising awareness, encouraging

consumers to recycle electricals that are

outdated or not in use, we help give tech

a longer life.

Focus on services such as trade-in and

subscription-based consumption models

will continue in 2022/23.

Giving tech a longer life

When technology is at the end of its

useful life for a customer, their used

technology can go on to have benefits

for many other people, helping them

in turn to enjoy amazing technology.

We screen products that are returned to

us, repair if relevant and have mechanisms

in place to sell these through store or

online outlets to give these products a

chance of a second life. We also use

these items to help train new repair or

installation engineers or to harvest parts

for use in our repair services.

Elkjøp takes part on the Board of

the industry’s joint effort Ombrukt

(Re-used) through the industry association

Elektronikkbransjen. The project aims at

taking products out of waste streams,

and by providing third-party certification,

enabling safe reuse with a two-year

warranty.

When we can, we repair and refurbish

them to support local causes and

low-income families.

old mobile phones contain enough

gold to make a wedding ring yet

in the Nordics, each person has

an average of 2.3 mobile phones

lying around in a drawer or in the

attic unused

different elements can be found

in electronic products – the world

is running out of materials like

magnesium, cobalt, tungsten

and rare minerals

75m

Number of tonnes e-waste is

expected to grow to globally

by 2030

Key facts

Governance

Financial Statements

Investor Information

Strategic Report

In the UK & Ireland we provided thousands

of products for reuse last year. This was

achieved through our partnership with the

Reuse Network and the 150+ charities they

support across the UK which helped 7,024

low-income households save £1.3m in

2021/22. And through our work with the UK’s

largest independent recycler of e-waste

and provider of reuse, Environcom, we

have supported major UK charities with

4,056 refurbished white goods. We also

donated refurbished items to specific

causes, including 200 devices to Humans

in Need in April 2022 to support their work

in assisting refugees from the Ukraine.

It’s not just in the UK & Ireland that we’re

making a difference, either. Through

the ‘Second Home’ programme in our

Kotsovolos stores, more than 1,000

refurbished appliances have been

distributed to families in need since 2017.

This means our customers can enjoy our

amazing technology even more, in the

knowledge that they are using a product

that is good for their pocket and better

for the planet, and that can be enjoyed

again by others.

Reused tech helped

low-income households save

£1.3m

Number of tech items

provided to charities for reuse

12k+

46 Currys plc Annual Report & Accounts 2021/22

Sustainable business

Climate change

We will achieve net zero

(1)

by 2040

The climate crisis remains one of the greatest threats to our planet and we recognise the

impact this has on business and supply chains, including our own. Addressing our climate

risks and opportunities is a part of our Sustainability and Social Impact strategy.

Climate change strategy

Our purpose, to help everyone enjoy

amazing technology, goes beyond

ensuring customers can choose,

afford and enjoy the right technology.

We recognise our responsibility in

ensuring that our corporate purpose is

one which is sustainable and responds

to our climate risks and opportunities.

This is why we embed this thinking within our

Sustainability and Social Impact strategy.

We recognise that the impacts of climate

change are hard to predict with accuracy

and that they will impact businesses in

many different ways, at different times and

these impacts may also be compounded

by one another. We support the Task Force

on Climate-related Financial Disclosures

(‘TCFD’) and its recommendations.

Understanding the impacts of climate

change on our business provides us with

the opportunity to develop a strategic

response to mitigate the risks, whilst

building on the opportunities this presents

for Currys. We have carried out this work

and are disclosing our progress in line

with the recommendations of the TCFD.

We have made significant progress this

year with the completion of quantitative

scenario analysis to further strengthen

our strategy and enable us to build a

roadmap to increased climate resilience.

We have responded to the CDP

questionnaire on climate change since

2016, scoring an ‘A’ in the latest 2021

disclosure, and as part of this report we

included the material climate-related

risks and opportunities we identified

through climate risk and opportunity

identification workshops which we ran

in 2021/22. These workshops identified

short, medium and long-term physical

and transitional climate-related risks

which have been reflected in our ESG Risk

by our ESG Committee.

We recognise that climate-related risks

and opportunities cannot be assessed

through traditional risk management

processes only. As such, we have

undertaken a pilot scenario analysis

exercise in this reporting year.

We applied scenario analysis to the

two most material climate-related risks

for our operations, identified through

internal workshops:

• Policy driven changes to energy costs,

and their impacts on the cost of

running our stores, distribution centres

and vehicles.

• Increasing severity and frequency of

extreme weather events, and their

impacts on damage to facilities,

stock and operational disruption.

The analysis considered each risk

independently of the other, except for

energy costs where we included the

additional cost of cooling our facilities

because of increasing average external

temperatures. In each analysis we used

consistent time horizons of 2025 (short-

term), 2030 (medium-term) and 2040

(long-term) to align with our current

risk management time horizons and

extending out to the target years of our

climate goals. Analysis was based on

the latest climate models and scientific

understanding. We used the three climate

scenario models developed by the IPCC

(RCP 4.5 Low, RCP 4.5 High and RCP 8.5)

using NEX-GDDP and EnerData datasets,

across three different time horizons.

Following this work, we will now seek to

improve our existing measures to adapt

to and mitigate climate change with a

strategy which is informed by scenario

analysis. We continue to invest in measures

to mitigate our climate change impact,

and as part of this we have near-term

emissions targets approved by the

Science Based Target initiative (‘SBTi’)

with a net zero target by 2040.

This pilot exercise also highlighted areas

where data can be improved to enhance

the robustness of model outcomes.

We recognise the importance of

collaborative action; we have committed

our support to EV100 and the British Retail

Consortium Climate Action Roadmap.

We have actively supported business

commitments to climate action, including

being signatories to the Business Ambition

for 1.5°C and the We Mean Business

Coalition G20 open letter. We also

proactively support policy changes

and recommendation through our

memberships of EV100 and the UK Electric

Fleets Coalition.

More information on our Sustainability

and Social Impact strategy and material

issues is on pages 40-41.

Climate governance

Our management and response to

climate-related risks is led by our ESG

Committee, chaired by General Counsel

and Company Secretary, Nigel Paterson.

The Committee considers, monitors

and reviews climate change related

issues in their meetings to ensure that

the appropriate strategy, programmes

and investments are in place to build

robust and effective risk management.

They submit progress to the Group Risk

& Compliance Committee, Executive

Committee and Board. The ESG

Committee has four scheduled meetings a

year with representation from all business

regions including two Board members and

one Executive Committee member.

CDP score for

climate change

in 2021

(1) Net zero is defined in the Glossary and definitions section on page 245.

Governance

Financial Statements

Investor Information

Strategic Report

The ESG Committee has a clear

communication line to the Board with regards

to climate-related matters; reporting to

the Executive Committee which in turn

reports to the Board. Further, the Regulatory

Compliance Committee reports up to the

main operating subsidiaries which report to

the Board and our Group Risk & Compliance

Committee also reports to the Executive

Committee and in turn reports to the Board.

A diagram of our governance structure is

included on page 88 and a report from the

ESG Committee is available on page 113.

During the year the Board discussed

and challenged the ESG strategy and the

extent to which it remained fit for purpose.

In day-to-day operations, we have

assigned management level responsibility

for different climate-related issues in the

business and climate-related risks and

opportunities are incorporated into the ESG

Risk Register. These risks and opportunities

are included in Board agendas both

through ESG update papers and Group Risk

& Compliance Committee papers, both of

which are provided twice a year. Progress

against climate targets are reported

to the Executive Committee quarterly.

The Board received comprehensive ESG

updates in September and December

2021 and regular reporting on progress

against our climate targets is included

within the CEO report at Board meetings.

The Board is continuously seeking to increase

their knowledge on climate-related risks

and opportunities. For example, a climate-

related risks and opportunities workshop

was held for members of our Board and

Executive Committee in May 2022. This

included information and discussion on

why net zero is so important, the impacts

of climate change on businesses and the

key learnings from pilot scenario analysis

exercise. The majority of the Board and

Executive Committee attended and those

that we unable to attend were provided

with a recording of the session.

The Board fully support Currys’

science-based targets and commitment

to net zero by 2040 across our Scope 1,

2 and 3 emissions, with a specific budget

approved in 2021/22 allocated over the

next three years for investment in emission

reduction projects.

In 2021/22, emissions-related KPIs were

included in the annual bonus scorecard

for employees and will continue to be

KPIs for 2022/23. Whilst not currently in

place, Long Term Incentive Plans linked

to Scope 1, 2 and 3 climate targets have

been reviewed and we plan to have them

in place within the next two to threeyears.

Risk management and opportunities

Group risk assessment criteria have been

determined along with the net and gross

risk profile. Priority risks have been agreed

by the ESG Committee and reviewed

by the Board. In 2020/21 a principal risk

relating to sustainability which includes

climate-related matters was added to

the Group Risk Register. We will continue

to monitor changes to risk (increase,

decrease or no change), assess climate

change as a principal risk within the

business and report risk annually in the

annual report and accounts.

We have an ESG Risk Register which

incorporates short, medium and long-term

physical and transitional climate-related

risks identified. This ESG Risk Register

includes climate-related risks covering

both transitional and physical risks scored

against impact and likelihood, along with

further mitigation actions identified and

assigned to the relevant management

team. Actions identified as a result of this

year’s pilot scenario analysis exercise

will be added to our ESG Risk Register.

ESG Risk was discussed at every ESG

Committee meeting in 2021/22.

Further information

Read about our risk management on pages

58-64 and 96-99.

Climate metrics and targets

We’re committed to achieving net zero

emissions by 2040 – 10 years ahead of the

UK Government – by reducing the impact

of the energy and resources we use in our

operations – but also in our wider value

chain. This is an absolute reduction target

for our total scope 1, 2 and 3 emissions,

measured against a 2019/20 baseline.

Our net zero roadmap includes near-term

emissions reduction targets to reduce

Scope 1, 2 and 3 GHG emissions by 50%

absolute across the Group by 2029/30,

have been approved by the SBTi as

consistent with levels required to meet

the goals of the Paris Agreement. In this

way, our commitment to net zero meets

a number of the requirements of the SBTi

Corporate Net-Zero Standard.

The targets covering GHG emissions

from Currys’ operations (Scope 1 and 2)

are consistent with reductions required to

keep warming to 1.5°C, the most ambitious

goal of the Paris Agreement. Currys’ target

for the emissions from its value chain

(Scope 3) meet the SBTi’s criteria for

ambitious value chain goals, meaning

they are in line with current best practice.

For 2021/22 we introduced a new Scope

1 and 2 emission- based KPI in the bonus

scorecard for colleagues, affirming the

importance of reducing emissions and

tackling climate change as a business.

This KPI will be present again in the

2022/23 bonus scorecard.

We report on intensity metrics,

MWh/1,000 sq ft for energy and MPG

for fleet vehicles, and have set a target

for zero waste to landfill for commercial

waste in UK and Ireland; in 2021/22 we

diverted over 99% from landfill. We also

measure the proportion of our business

that uses renewable electricity and the

number of electric vehicles (‘EVs’) in our

fleet (see Operational emissions).

Our Scope 1 and 2 emissions have been

assured against the ISAE 3410 and ISAE

(UK) 3000 standards by KPMG. An

update on our progress against our targets

is included on pages 48-51 and our data

methodology is available on our website

at www.currysplc.com.

We will refine the metrics that we

monitor for the physical impacts from

the identified material acute risk drivers,

and we have identified further metrics

to manage our response to energy cost

increases such as percentage of vehicles

converted to EVs or alternative fuels.

Further information

Read about our energy and carbon data

on pages 48-51.

Read about our bonus scorecard target

on emissions on page 134.

Read about how we created value in

2021/22 on page 11.

Information on our Environmental policy

is available on our website

www.currysplc.com/sustainable-

business/policies-disclosures

48 Currys plc Annual Report & Accounts 2021/22

Investing responsibly with TRAILAR

In partnership with TRAILAR, we have invested in solar powered vans to help

reduce the fuel consumption of nearly 200 vans across our network. Across the

next four years, this initiative will aim to reduce our CO

by 271 tonnes a year,

equivalent to 1.39 tonnes a year per vehicle. This will save an estimated 552

litres of diesel per vehicle each year.

We are actively addressing wider

climate-related risks and report on the

key data we use to monitor our progress,

for example our transition to renewable

energy and moving towards circular

business models (see pages 42-45).

Operational emissions

Energy

We’re taking action to reduce our use

of energy. In fact we maintained our

certification of our Energy Management

System in 2021/22 for our UK & Ireland

estate and fleet. And in line with the

British Retail Consortium’s Climate Action

Roadmap, we have set a target to

operate 100% LED coverage in all new

buildings by 2025 – we made progress

in 2021/22 and now 68% of our UK and

Ireland portfolio and 76% of our Group

portfolio uses LED technology as the

main source of lighting.

We also achieved 100% of our properties

in the UK & Ireland, Greece and the Nordics

being powered by renewable electricity,

expanding this in the UK to now include

sites where we aren’t responsible for the

supplier contract (back by REGOs in the UK

and GOs in Europe). We also have four UK

sites with Solar PV installed, with a capacity

of over 2MWp, reducing our emissions by

approximately 429 tonnes.

Fuel

We are a signatory to the Climate Group’s

EV100 initiative and are fully committed

to transitioning 100% of our company

cars and small van fleet and 50% of

our medium to heavy fleet to electric or

alternative fuel fleet by 2030. EV100

is a global initiative bringing together

companies committed to accelerating

the transition to EVs.

In 2021/22 we submitted our first roadmap

and second progress update to EV100.

We have three EVs in service across the

Group, along with 33 charging points

installed across seven sites. Whilst this

represents a small proportion of the

total vehicles in our owned fleet, our

approach is to run trials for up to a year

with a number of different drivers to give

Sustainable business

Climate change continued

76%

of our portfolio across the Group

uses LED technology as the main

source of lighting

100%

of our properties in UK & Ireland,

Greece and the Nordics are

where we are responsible for

supplier contracts

31%

reduction in Scope 1, 2

and 3 emissions against

a 2019/20 baseline

them a true on-the-job experience and

to gain their feedback. Feedback has

been positive which will help support our

business case for expanding the use of

these vehicles.

We are in talks with many of the major

vehicle manufacturers to continue trialling

car and van options, with the plan to

introduce more EVs at scale in 2022, as

well as develop and test other innovations

such as our work with TRAILER in the UK to

reduce our emissions (see below).

Through our supplier, Calor, 14% of LPG

provided to power our forklifts in the UK

was a bioLPG blend, which has 40% less

e emissions than traditional LPG.

Working with Calor we aim to increase

to the use of bioLPG in our forklifts to

100% before 2030.

We are also continuing to target

reductions through improved driver

training, the use of telematics and our

‘in-cab’ driver alert system and – in the

UK & Ireland – implementing ISO 50001.

Key facts

Governance

Financial Statements

Investor Information

Strategic Report

Scope 3 emissions

Our Scope 3 emissions include

the indirect emissions from across

our value chain which account for

over 99% of our total emissions.

The most material impacts are within

purchased goods and services and the

use of sold products. We will achieve

reductions in these emissions through

a programme of activities involving our

suppliers, our manufacturers and through

colleague engagement.

The following table details Currys’

Scope 3 emissions. We have been able

to increased granularity and use more

primary data to calculate our Scope

3 emissions for 2021/22. Other notable

changes include emissions from the use of

sold products increasing in 2021/22 due to

variances in the main suppliers emissions

intensities and emissions associated

with the use of sold products were re-

calculated for the past two reporting

periods due to a modelling correction

having been made.

Currys GHG emissions

Tonnes of

e emitted

2021/22

% change

from 2019/20

baseline

Tonnes of

e emitted

2020/21

Tonnes of

e emitted

2019/20

Scope 1 emissions 18,158* -12% 20,952 20,742

Scope 2 emissions (location based) 34,318* -33% 36,817 51,131

Scope 2 emissions (market-based) 3,188* -80% 14,368 16,121

Scope 3 emissions total 24,050,024 -31% 22,923,580 34,983,753

Purchased goods and services 3,384,944 -21% 3,250,795 4,300,532

Fuel and energy related emissions 18,632 17% 13,085 15,905

Upstream transportation and distribution 77,860 -53% 53,653 165,115

Waste generated in operations 2,698 178% 2,588 972

Business travel 1,143 -58% 415 2,754

Employee commuting 27,889 2% 19,390 27,275

Downstream transportation and distribution 13,054 -64% 16,904 35,906

Use of sold products 20,515,679 -33% 19, 556,760 30,425,451

End-of-life treatment of sold products 8,125 -17% 9,990 9843

Total Emissions (Scope 1, Scope 2 Market-Based & Scope 3) 24,071,370 -31% 22,958,900 35,020,616

Assessing supplier performance

We’ve also partnered with one of the

leading providers of business sustainability

ratings: EcoVadis. This helps us to measure

supplier performance across a wide

range of metrics and identify ways we can

champion positive activities, collaborate

to improve performance, reduce our

emissions and benefit wider society.

Looking ahead

We plan to build on our pilot climate

scenario analysis and learnings, ensuring

it is embedded into our governance, risk

management and strategic approach. In

time, we also intend to expand this to other

areas of our value chain to further assess

business resilience under different scenarios.

We will continue to quantify the transitional

and physical risk outputs from our scenario

analysis and incorporate this into our

business strategy. We do not currently use

an internal carbon price; we will review this

position in 2022/23. We will also explore

how climate-related issues serve as an

input to their financial planning process. We

will develop and publish a robust net zero

emissions roadmap for the Group which will

provide detail on carbon abatement for

key emissions sources and neutralisation

plans of any source of residual emissions

that remain unfeasible to remove.

TCFD Statement of Compliance

Currys is disclosing in accordance with the

Financial Conduct Authority (‘FCA’) Policy

Statement 20/17 and Listing Rule LR 9.8.6R(8).

The main disclosures are set out on pages

46-51. The disclosures describe activity to

date and future areas of focus to further

strengthen our strategic approach and

communication of climate-related issues.

Our disclosures are consistent with

the TCFD’s Recommendations and

Recommended Disclosures, with the

exception of the following:

• 2a – Describe the climate-related

risks and opportunities the organisation

has identified over the short, medium,

and long term.

• 2b – Describe the impact of climate-

related risks and opportunities on the

strategy, and financial planning.

• 2c – Describe the resilience of the

taking into consideration different

climate-related scenarios, including

a 2°C or lower scenario.

• 3a – Describe the organisation’s

processes for identifying and assessing

climate-related risks.

• 3b – Describe the organisation’s

processes for managing climate-

related risks.

Currys have conducted a pilot climate

scenario analysis exercise in 2021/22

and are in the process of embedding

the learnings into our governance, risk

management and strategic approach. At

the point of disclosure, it was considered

that the work in progress is not sufficiently

completed to meet the above requirements

of the disclosure recommendations. Our

TCFD disclosures are to be updated on

an annual basis, therefore, we will be

able to set out our progress as part of

our 2022/23 TCFD disclosure.

Our Basis of Reporting, available on www.currysplc.com, includes an assessment of the relevant Scope 3 categories for Currys.

* We engaged KPMG LLP to undertake independent limited assurance under ISAE (UK) 3000 and ISAE 3410 for selected energy consumption, e-waste and GHG

emissions which have been highlighted with an *. For more details of the scope of their work, please refer to their assurance opinion on www.currysplc.com.

50 Currys plc Annual Report & Accounts 2021/22

Sustainable business

Climate change continued

The company-wide kWh energy consumption for the reporting period 1 May 2021 – 30 April 2022, are as follows:

Energy and carbon reporting

This section details the energy

consumption and GHG emissions

from the activities of Currys for the

period 1 May 2021 to 30 April 2022, as

required by the Companies Act 2006

(Strategic Report and Directors’ Report)

Regulations 2013 (‘the 2013 Regulations’)

and the Companies (Directors’ Report)

and Limited Liability Partnerships

(Energy and Carbon Report) Regulations

2018 (‘the SECR Regulations’).

An operational control approach has been

used to define the GHG emissions boundary.

This captures emissions associated with

the operation of offices, retail stores,

warehouses, and distribution sites, plus

transport including company-owned,

leased and employee-owned vehicles

used for business travel. This includes

emissions from the UK and Offshore

including the Republic of Ireland, Greece,

Sweden, Norway, Finland, and Denmark,

Czech Republic, Cyprus and Hong Kong.

There are no material omissions from

the mandatory Scope 1 and 2 emission

reporting requirements. This information

was collected and reported using the

methodology in Defra’s updated GHG

reporting guidance, Environmental Reporting

Guidelines (ref. PB 13944), issued June 2019.

Emissions have been calculated using

the 2021 conversion factors provided by

the Department of Business, Energy and

Industrial Strategy for emissions in the UK

and Association of Issuing Bodies (‘AIB’)

and International Energy Agency (‘IEA’)

for offshore electricity conversion factors.

We engaged KPMG LLP to undertake

independent limited assurance under ISAE

(UK) 3000 and ISAE 3410 for selected

energy consumption, e-waste and GHG

emissions which have been highlighted

with an *. For more details of the scope of

their work, please refer to their assurance

opinion on www.currysplc.com.

Significant progress has been made in

Scope 1 and 2 emissions reduction in

2021/22 due to our alignment across the

Group to procure renewable electricity.

Progress against our net zero target is

also positive, with a 31% reduction in

Scope 1, 2 and 3 emissions achieved in

2021/22 against a 2019/20 baseline.

Global energy consumption

Currys

Energy consumption (kWh)

UK and

Offshore

2021/22

Global total

2021/22

Global change

(%)

UK and

Offshore

2020/21

Global total

2020/21

UK and

Offshore

2019/20

Global total

2019/20

Transport (including

Diesel, Petrol, LPG) 60,508,453 -1.8% 54,936,222 61,599,577 63,377,377 71,261,546

Natural Gas 18,261,838 -35.9% 27, 318,959 28,500,590 20,301,590 22,142,355

Heating (Oil and LPG) 146,114 -56.0% 98,860 331 ,876 214,868 214,868

Electricity 202,115,280 4.8% 90,122,184 192,890,720 131,070,522 236,971,131

Total: 163,863,416 281,038,428* -0.8% 172,476 , 225 283,322,763 214,964,357 330,589,900

Intensity (MWh/

1,000 sq ft) 12.63* -7.5% 14.58 13.65 18.02 16.24

Energy consumption (kWh) 2021/22 2020/21

Total renewable energy purchased or generated 195,279,334* 159,436,764

Emissions on location basis

Currys

Category

Tonnes of

e emitted

2021/22 Change (%)

Tonnes of

e emitted

2020/21

Tonnes of

e emitted

2019/20

Emissions from combustion of fuel

(3, 5)

(Scope 1) 16,952 -13.7% 19,638 19,868

Emissions from the operation of facilities

(4)

(Scope 1) 1,205 -8.3% 1,314 874

Scope 1 emissions 18,158* -13% 20,952 20,742

Emissions from purchase of electricity

(2, 3)

(Scope 2) 34,318* -6.8% 36,817 51,131

Total: 52,476 -9.2% 57,769 71,873

Intensity ratio: tCO

e/1,000 sq ft occupied floor area

(1)

2.36* -15.3% 2.78 3.53

The GHG emissions for our business for the reporting period 1 May 2021 – 30 April 2022, are as follows:

Governance

Financial Statements

Investor Information

Strategic Report

(1) Overall floor area of Currys is estimated to be 22,258,265 sq ft.

(2) The electricity consumption figure includes Scope 2 generation emissions but not Scope 3 transmission and distribution losses.

(3) Electricity and gas usage is based on supplier bills. Manual gap filling was conducted for a small proportion of electricity supplies in the UK and Ireland and Greece

using an average of the consumption year to date or previous months. This is because this report was due before some electricity and gas bills had been provided by

the suppliers. This report also includes electricity consumption through supplies where the landlord procures the energy; some of this consumption has been estimated

either based on the average energy consumption per floor area for site type or using last year’s data estimation.

(4) Refrigerant data processing methodology and exclusions: a. Where refrigerant top-ups are reported, we assume this covers leakage across the estate under that

contractor’s responsibility to repair the leak and top-up the refrigerant, as such no estimation of leakage has been completed for units where no top-ups were carried out.

(5) Sweden – All hire car data estimated for Q3 and Q4 due to lack of actual data availability.

A location-based method reflects the average emissions intensity of grids on which energy consumption occurs and a market-based method reflects emissions from

electricity that companies have selected.

* We engaged KPMG LLP to undertake independent limited assurance under ISAE (UK) 3000 and ISAE 3410 for selected energy consumption, e-waste and GHG

emissions which have been highlighted with an *. For more details of the scope of their work, please refer to their assurance opinion on www.currysplc.com.

Emissions on market basis

Currys

Category

Tonnes of

e emitted

2021/22 Change (%)

Tonnes of

e emitted

2020/21

Tonnes of

e emitted

2019/20

Emissions from combustion of fuel

(3, 5)

(Scope 1) 16,952 -13.7% 19,638 19,868

Emissions from the operation of facilities

(4)

(Scope 1) 1,205 -8.3% 1,314 874

Scope 1 emissions 18,158* -13% 20,952 20,742

Emissions from purchase of electricity

(2, 3)

(Scope 2) 3,188* -77.8% 14,368 16,121

Total: 21,346 -39.6% 35,321 36,863

Intensity ratio: tCO

e/1,000 sq ft occupied floor area

(1)

0.96* -43.6% 1.70 1.81

Emissions on location basis

By region

Category

Tonnes of

e emitted

2021/22 Change (%)

Tonnes of

e emitted

2020/21

Tonnes of

e emitted

2019/20

Tonnes of

e emitted

per 1,000 sq ft

of floor area

2021/22

Tonnes of

e emitted

per 1,000 sq ft

of floor area

2020/21

Tonnes of

e emitted

per 1,000 sq ft

of floor area

2019/20

UK and Offshore

(Scope 1 and 2) 35,791 -10.4% 39,951 51,866 2.75 3.38 4.35

Global (excluding

UK and Offshore)

(Scope 1 and 2) 16,684 -6.4% 17,817 20,006 1.80 2.11 2.37

Total: 52,476 -9.2% 57,769 71,873 2.36 2.78 3.53

Emissions on market basis

By Region

Category

Tonnes of

e emitted

2021/22 Change (%)

Tonnes of

e emitted

2020/21

Tonnes of

e emitted

2019/20

Tonnes of

e emitted

per 1,000 sq ft

of floor area

2021/22

Tonnes of

e emitted

per 1,000 sq ft

of floor area

2020/21

Tonnes of

e emitted

per 1,000 sq ft

of floor area

2019/20

UK and Offshore

(Scope 1 and 2) 16,305 -18.7% 20,058 21,762 1.25 1.70 1.82

Global (excluding

UK and Offshore)

(Scope 1 and 2) 5,040 -67.0% 15,263 15,101 0.54 1.71 1.79

Total: 21,346 -39.6% 35,321 36,863 0.96 1.70 1.81

Information on our emissions and

e-waste data methodology is available

on www.currysplc.com

Information on external assurance

on our emissions and e-waste data is

available on www.currysplc.com

52 Currys plc Annual Report & Accounts 2021/22

Sustainable business

Our communities

We bring technology to everyone everyday

We pride ourselves on bringing technology to more people through our competitive pricing,

access to online and physical stores, and affordable and responsible credit offering.

But that’s not all: because our social purpose is at the heart of what we do, we also

support causes that help those who might otherwise be excluded.

Digital equality

We want everyone to be able to enjoy equal access to

the benefits of technology. We are committed to helping

eradicate digital poverty, in all countries we operate in.

In the UK alone 25% of vulnerable children do not have access to a suitable device

for learning and 42% of offline users said “it’s not for people like me”. While in the

Nordics one in five people have products at home that they do not know how to use.

Wherever we operate we can help:

• Our colleagues help people in their local communities access and enjoy tech.

• Our customers help us raise funds to help those who are digitally excluded.

• Our suppliers work collaboratively with us to be a force for good.

The UK Digital Poverty

Alliance

We are one of three founding

partners of the Digital Poverty

Alliance (‘DPA’, part of the Learning

Foundation, registered charity

number 1086306) alongside

the Institute of Engineering and

Technology (‘IET’).

The start-up phase of the DPA

was funded by a £1m donation

from Currys and we are proud that

the last year has seen the DPA set

out its strategy over the next two

years to convene, compel and

inspire collaboration within the UK

community to lead sustainable

action against digital poverty.

Our donation also funded the

first DPA proof of concept project,

Tech4Teachers, by equipping 1,000

teachers and teaching assistants in

the country’s poorest communities

with the technology and support

they need to deliver high-quality

home schooling to their pupils.

These proof of concept projects

are intended to innovate where

there are gaps, and the success

of the pilot has led to further

support for this scheme from other

companies seeking to drive change.

We are delighted to confirm our

ongoing commitment to the DPA

and in 2022/23 we will be using

Pennies funds to support vulnerable

families in need with life changing

access to technology.

Appliance poverty

In 2021/22 in the UK & Ireland we continued our supplier collaboration with

Grundig to provide over £50,000 worth of kitchen technology to food-related

charities nominated by colleagues across the UK. This takes our total support

since 2018 to 425 appliances donated and to 215 charities helped at a value

of £196,737.

Governance

Financial Statements

Investor Information

Strategic Report

Amount raised for

Age UK’s Tech Connected

programme

£350k+

Value of donations made

to support those impacted

by the war in Ukraine

£140k+

Helping digitally excluded

older persons in the UK

Age UK was chosen by UK colleagues in March 2020 as

our corporate charity partner for a two-year period, with

the aim of helping digitally excluded older people benefit

from amazing technology and connecting them to those

that love and need them. With thanks to our colleagues

and customers, in that time we have raised over £350,000

for Age UK’s Tech Connected programme.

In 2021/22 our customers raised £229,394

through Pennies instore donations and

our colleagues raised £7,200 through our

fundraising activities. Seven colleagues

have also volunteered and made

friendship calls, spending 76 hours,

40 minutes and 42 seconds speaking

to lonely older people.

With the money raised over the last two

years Age UK has been able to develop

and launch 21 much needed Digital

Support Guides on topics older people

have identified as being in most need

of. There are Beginner, Intermediate and

Advanced guides covering topics such

as: an introduction to technology & key

terminology; getting connected to the

internet & browsing the web; video calling;

email; online entertainment, hobbies &

shopping; as well as staying safe online.

These guides will help enable older

people to get and stay connected to their

loved ones, supporting their mental health

and, importantly, keeping them safe in the

online world.

This funds raised will also:

• Enable Age UK to develop a Digital

Inclusion Service Handbook with

information, guidance and tools to

help local Age UKs set up a digital skills

service in their community.

• Launch a tablet loan scheme of over

100 tablets, addressing one of the main

barriers to older people wanting to get

online: access to technology.

• Provide support to four local Age UKs

to provide one-to-one support and

awareness raising sessions to older

people in their communities through

the recruitment and training of local

Digital Champions who will help inspire,

motivate and support older persons

with their digital capabilities.

Support to the people

of Ukraine:

• Prioritised the safety and

well-being of our colleagues and

partners who have employees

working on behalf of Currys –

such as Softserve – ensuring they

know what support is available.

This is particularly the case for

our colleagues who live and

work near the Ukrainian border

(Brno), as well as those who

have personal connections

within Ukraine.

• Joined other large mobile

telecoms providers to waiver

text and call charges to Ukraine

numbers, as well as crediting back

calls, texts, and unlimited data for

our iD Mobile customers in Ukraine.

• Donated £100,000 as a Group

to the Red Cross and advised

colleagues of ways in which they

can make contributions.

• The Brno team are directly

supporting refugee and colleague

families, which included 200

refurbished devices worth over

£42,000 donated from the UK &

Ireland business to support Brno’s

chosen charity, Humans In Need.

• Kotsovolos supplied more than

100 devices for use by refugees

locally through their partnership

with The Smile of the Child.

To see the guides visit https://www.

ageuk.org.uk/information-advice/work-

learning/technology-internet/

54 Currys plc Annual Report & Accounts 2021/22

Sustainable business

Our communities continued

Elkjøp is fighting digital exclusion

Through our annual research, Tech Trouble, we have identified a number of groups that due

to age, socioeconomic status, disabilities, language and cultural barriers, or other matters,

find themselves on the wrong side of the technological divide.

We keep track of our customers

challenges when it comes to technology

through our Tech Trouble survey.

According to our research one out of three

people in the Nordics find it difficult to

keep up with the changes in technology,

and one in five say they have products

at home that they do not know how to

use. Even more admit that they are not

utilising their products to full potential,

not knowing how to use all the features.

Elkjøp’s partnerships and The Elkjøp Foundation

Elkjøp entered into a number of long-term strategic partnerships

to strengthen the ability to fight digital exclusion more effectively.

Over £400,000 has been committed.

• Norway: SOS Children’s Villages International, focusing on their project

‘Digital Village’.

• Finland: Save the Children, focusing on their interactive learning solution and

contributing to their digital childhood competence centre, Kidital. We have also

joined the cross-sector Kaikille Kone initiative.

• Denmark: Danish Peoples Aid, focusing on ‘School Start Assistance’, ensuring

that those with low income also get a good start at school.

• Sweden: Läxhjälpen (‘Homework Assistance’), focusing on kids having the right

digital equipment to be able to do homework in an efficient way. Also new is

the partnership with Barnens Dator (‘Computers for kids’), focusing on donating

gaming computers to kids and families that risk missing out due to low income.

The Elkjøp Foundation was established to fight digital exclusion. It works to raise

awareness, increase knowledge, and enable access to people who are falling

behind in the rapid development of technology.

To connect, play or learn with technology should be easy and fun but that is not

always the case. That is why The Elkjøp Foundation supports organisations and

associations with products and guidance – in addition to financial resources.

This is very close to our vision and our hearts, and work we are incredibly proud of.

Elkjøp funding to

fight digital exclusion

£400k+

Governance

Financial Statements

Investor Information

Strategic Report

Kotsovolos’ support

Kotsovolos supports low income families and the move to a circular economy through

their Second Home initiative. Colleagues motivate customers to offer their unused devices

and also take part in a Good Deed Day every year.

Second Home

Through our Second Home initiative,

Kotsovolos enables people who have

functional devices they no longer use,

to donate them and support families

in need.

Colleagues motivate customers to offer

their unused devices and donate them

to families in need. Kotsovolos collects

the device, repairs it and disinfects it,

and then offers it to another family.

If the appliance cannot be repaired,

the company undertakes to recycle it.

Between 2018 – 2020 more than 1,000

families received at least one basic

appliance, such as refrigerator, oven or

washing machine. During the last year the

process has been paused to allow it to

be updated and redesigned. Despite this

c.100 devices were offered at a total

cost of £22,757 to: K.Y.A.D.A (Centre for

Reception and Solidarity of Municipality

of Athens), The Smile of the Child, The

Ark of the World and local causes

working in cooperation with local stores.

This programme will be relaunched in

summer 2022.

Technology without Obstacles

programme

Kotsovolos strives to empower people

to live a better life with technology.

This initiative aims to maximise

access to technology for people with

disabilities and is a key programme

that is enabling digital inclusion for

people with disabilities, and creating

equal access for all.

Kotsovolos is the first retailer in Greece

that is investing in store and product

accessibility for people with disabilities.

For example:

• 14 accessible stores are already

recognised by the Hellenic Society

for Protection and Rehabilitation of

Disabled Persons as accessible to

people with disabilities and 18 more

stores are expected to be recognised

as accessible to people with

disabilities in the next 12 months.

• First retailer in Greece to offer sign

language assistance through contact

centre agents and also to offer the

opportunity to blind people to be

able to read their insurance contracts

summary in braille.

• A dedicated microsite explains all

supportive technologies for those with

visual impairments, hearing disabilities

and mobility impairments.

• A dedicated qualitative survey

for people with disabilities was

implemented and shared through a

digital event to Greek retailers.

Kotsovolos has held two training sessions

for colleagues and in 2022/23 aims to

provide sessions for all colleagues as

well as develop dedicated corporate

campaigns raising awareness about

disability issues among consumers.

Kotsovolos has also worked with

Laddroller to create its next generation

wheelchair. Laddroller was made to help

wheelchair users worldwide to overcome

their loss of autonomy. It is an entirely

new, innovative approach to mobility

compared to existing devices, allowing

users to stand up when using Laddroller.

The first of this generation of Laddroller

wheelchair will be donated to a child with

physical disabilities in cooperation with

ELEPAP, a charity committed to providing

lifelong support to those with disabilities.

Good Deed Day

In Greece, our teams spend a

day every year taking part in

‘Good Deed Day’, where they

agree among themselves how

they will support local causes.

Good Deed Day was established

in 2013 and is the biggest volunteer

action for Kotsovolos’ people

that takes place once a year on a

Sunday in May or June. Every year,

more than 1,000 volunteers from

our stores, offices, warehouses and

distribution centre participate in

multiple actions focusing on children,

minority social groups, older persons

or the environment.

In 2021/22 colleagues gave up their

time to volunteer on Good Deed

Day, organising 17 blood donation

drives totalling 256 pints of blood,

supporting hospitals in Greece

and Cyprus.

56 Currys plc Annual Report & Accounts 2021/22

Sustainable business

Our suppliers and governance

Our suppliers

Bringing amazing and more sustainable tech to our customers isn’t something we do alone.

Our partnerships with suppliers make a big difference too.

Responsible sourcing

We collaborate with our

manufacturers and suppliers to

make sure the products we sell

are safe and responsibly sourced.

And when selecting our suppliers or

renegotiating existing contracts, we

consider their overall sustainability

performance, particularly their energy

efficiency, climate change impact,

water-use and biodiversity impact.

Our standards

For customers to enjoy our amazing

technology they need peace of mind

that we’re sourcing responsibly. With

around 7,000 suppliers across the

globe, we want to make sure we’re

using our size and unique capabilities

to do good.

In addition to compliance with all relevant

national and international legislation,

we’ve created our own Standards for

Responsible Sourcing which set out our

expectations for all suppliers, partners

and subsequent supply chains. The

Standards reflect our commitment to acting

with integrity in business relationships.

An Anti-bribery, Hospitality and Gifts

Policy is in place. The procedures in place

to oversee the anti-corruption and bribery

control environment is reviewed by the

Audit Committee on at least an annual

basis and most recently in June 2022.

The full Policy is reviewed by the Board

periodically.

Modern slavery

We’re committed to eradicating all

forms of modern slavery and human

trafficking. The fact that modern

slavery still exists today is abhorrent

and eradication requires collaboration

and transparency.

Our Modern Slavery Statement and Policy

has been issued to all our colleagues,

suppliers and partners. It clearly states

the actions to take if a case of modern

slavery is discovered or suspected. We

work with our suppliers to ensure they

adhere to our Modern Slavery Policy.

We continue to expand our efforts

to tackle the issue – collating existing

actions and working on new initiatives

across our business and supply chain to

mitigate risk and identify areas that need

additional focus.

Our progress

In 2021/22 we:

• Invited more suppliers to join the

EcoVadis platform to enable us

to measure their sustainability

performance, with nearly half of total

revenue of the Group now assessed.

• Joined the Responsible Business

Alliance, an organisation with over 400

members involved in the manufacture

of electronics and with an aim of

driving sustainable value for workers,

the environment and business through

global supply chains.

• Updated our Modern Slavery

Policy and issued new Child Labour

Remediation and Conflict Minerals

policies.

• Rolled out our enhanced ethical and

quality audit criteria for own label

and licensed brand suppliers based

in China and the Far East.

• Completed our assessment of tier 2

waste and recycling partners in the UK

in conjunction with Slave-Free Alliance

and our direct (tier 1) supplier.

Standards

Read our Standards for Responsible

Sourcing: https://www.currysplc.com/

media/l15njpci/currys-plc-standards-

for-responsible-sourcing-april-2019.pdf

Responsible sourcing

Read more in our Modern Slavery

Statement: https://www.currysplc.com/

media/ekvfjju1/d2752_cpcw_modern-

slavery-statement-8.pdf

Governance

Financial Statements

Investor Information

Strategic Report

Governance

At Currys we’re fully committed to operating a responsible business.

We talk to our stakeholders about their expectations, we search out

best practice and we reflect these in the decisions we make.

Our performance has been recognised

through improved performance in a

number of ratings and assessments of

our business, including:

• In June 2022, our progress in developing

and reporting our performance was

recognised with our repeated inclusion

in the FTSE4Good UK Index.

• We continue to respond to the

CDP questionnaire on Climate

Change, demonstrating our continued

commitment to identifying, assessing

and managing climate-related risks and

opportunities across the Group. In 2021,

we achieved an ‘A’ score.

• As of 28 March 2022, Currys performed

in the top quartile in the RTS retailing

Industry in the S&P Global Corporate

Sustainability Assessment with a score

of 32 reflecting an improvement of

12 points over the last year.

We’re serious about our responsibilities

and want to inspire more engaged

colleagues and build a business

investors feel good about investing in.

Environmental targets continue to feature

in our annual bonus scorecard with metrics

on e-waste collection volumes (5%) and

progress to net zero emissions (Scope

1 and 2) (5%). Read more about our

remuneration in on page 114.

Our Sustainability and Social Impact

strategy is signed off by our Group

Chief Executive and approved by the

ESG Committee.

It is driven and delivered by our

colleagues – subject matter experts that

are fully integrated across our business.

Their work is coordinated by the Director

of Group Sustainability and overseen

by the ESG Committee which reports into

the Executive Committee and comprises

representatives from all levels across

the business.

The business has a systematic approach

to ESG risk management. Our approach

has been benchmarked against

other leading organisations, which

resulted in the development of a more

comprehensive ESG risk profile and

risk appetite statement. Details on our

principal risk relating to sustainability is

available on page 62. This principal risk

is monitored by the ESG Committee and

the Executive Committee, with the aim of

better managing the broad spectrum of

ESG risks. In 2021/22 an internal audit of

ESG was conducted and we are using

the results to drive further improvements

in our measurement and reporting of

material issues. Our progress in 2021/22

has seen the level of risk attached to

sustainability reduce.

Being a good employer

Our people are at the centre of

who we are because it makes us

what we are. Read more about our

colleagues including:

• Our new People Plan strategy on

pages 18-25.

• Developing talent on pages 22-23.

• Communication and engagement

on page 24.

• Creating a culture of well-being

on page 25.

• Creating a culture of inclusion and

diversity on page 25.

• Health and safety on page 19 and

online at www.currysplc.com

Gender pay

Read our Gender Pay Report online at

www.currysplc.com

More information

Tax strategy

Read our Tax Strategy online at

www.currysplc.com

ESG Committee

Read the Terms of Reference

for the ESG Committee: https://

www.currysplc.com/media/4zriehtt/

currysplcesgcommitteetor_nov21.pdf

Governance

Read more about Governance at Currys

https://www.currysplc.com/about-us/

governance/

58 Currys plc Annual Report & Accounts 2021/22

Risk management

Approach

Principal risks to achieving

the Group’s objectives

The Group recognises that taking risks is an inherent part of doing business and that

competitive advantage can be gained through effectively managing risk. The Group

has developed and continues to evolve robust risk management processes, and risk

management is integrated into business decision-making. The Group’s approach to risk

management and risk governance framework is set out in the Corporate Governance

Report on pages 87 to 99. The risks are linked to the strategic priorities on pages 2 to 11.

Key changes to the Risk Profile

During 2021/22 a number of changes

were made to the Group Risk profile,

these included:

• following a reduction in the threat

from Covid-19, this risk was removed

as a standalone risk and subsumed

within the existing Group Health and

Safety risk;

• our Key Supplier relationship risk was

updated to include supply chain

related challenges such as reliance on

China and factory capacity limitations,

chip-set shortages, rising shipping costs,

delays at ports and the shortage of

HGV drivers. To reflect its wider ambit,

the risk was renamed Supply Chain

Resilience; and

• the risk relating to the Long Term and

Diversification of Funding was removed

on completion of the refinancing of the

Group’s debt.

RISK PROFILE

Likelihood Impact

Increased

2 1

Decreased

11 7

No Change

Principal Risks

Supply Chain Resilience

Business Transformation

FCA

Data Protection

IT systems and infrastructure

Information security

Health and Safety

Business Continuity

Tax liabilities

Product Safety

Our commitment to Sustainability

People

Colour Key

Strategic Regulatory Technology Operational Financial People

Governance

Financial Statements

Investor Information

Strategic Report

The impact of the Russian invasion of Ukraine

The business does not operate in Russia, Belarus or Ukraine and

we have obtained confirmations from our Brand and Own Brand

suppliers that none of the products we sell are produced in

these territories. However, there are risks to our business related

to the invasion which are being managed, including:

• risks to our supply chain caused by transport disruption,

scarcity of raw materials and components which are

being mitigated through our Commercial forecasting and

planning activities,

• impacts on our colleagues, especially in relation to our

operations in Czech Republic, which are being mitigated

through practical assistance and advice being offered to

local colleagues through people management channels, and

• reputational risks which could occur if the Group was

perceived to not be doing the right thing in response to

emerging sanctions. We are confident that the Group

remains fully compliant with all UK sanctions on Russian

and Belarussian entities.

Risks and potential impacts

The Group continues to develop its risk management processes,

fully integrating risk management into business decision- making.

The risk management process mirrors the operating model with

each business unit responsible for the ongoing identification,

assessment and management of their existing and emerging risks.

The output of these assessments is aggregated to compile an

overall Group-level view of risk.

The principal risks and uncertainties, together with their

potential impacts and changes in net risk since the last report,

are set out in the tables below along with an illustration of

actions being taken to mitigate them.

Our approach to horizon scanning and emerging risks

In order to promote sustainable success, the business

continues to analyse the risks likely to emerge in the short,

medium and longer term that may impact the delivery of our

Strategy. To provide a view over the medium to longer term,

a horizon scanning approach is required.

Our approach to undertaking horizon scanning is based on

conducting both reviews of external thought leadership and

also through obtaining the views of key business stakeholders

on emerging risks. The horizon scanning exercise is updated at

least semi-annually to ensure that the horizon is consistently

scanned for developments and changes that may impact

the business, including, for example, how the macro economic

environment and inflation could impact the cost of living

and consumer spending. The Group Risk and Compliance

Committee is asked to review and discuss the horizon risks

and to form a view as to whether any of these should be

considered in the Principal Risk process or additional actions

should be factored into strategic planning for the business.

60 Currys plc Annual Report & Accounts 2021/22

1 Supply Chain Resilience

Risk owner:

Chief Commercial Officer

Risk category:

Strategic

Risk movement:

Link to strategy

Considered in the

Viability statement:

Yes

What is the risk?

Exposure to disruption

to our supply chain

that could impede

our ability to provide

Amazing Technology

to our customers

and impact our

customer satisfaction,

profitability, cash flow

and market share.

What is the impact?

• Investments by

suppliers scaled

down

• Pricing and stock

availability terms

could worsen,

leading to deceasing

sales/reduced

margin

• Reduced revenue

and profitability

• Deteriorating

cash flow

• Reduced market

How we manage it

• Ensuring alignment of key suppliers

to future strategy; “Project Board

Meetings” with strategic suppliers’

management

• Continuing to leverage the scale of

operations to strengthen relationships

with key suppliers and maintain a

good supply of scarce products

• Working with suppliers to ensure

availability of products through Key

Supplier Group engagement program

• Ethical supply chain due diligence

over our supplier base

• Control structures to ensure

appropriate Supplier Relationship

Management for GFR, GNFR and OEM

Changes since

last report

This risk has increased

over 2021/22.

2 Business Transformation

Risk owner:

Chief Information Officer

Risk category:

Strategic

Risk movement:

Link to strategy

Considered in the

Viability statement:

What is the risk?

Failure to respond

with a business model

that enables the

business to compete

against a broad range

of competitors on

service, price and/or

product range.

Failure to optimise

Digital opportunities.

Failure to respond to

changes in consumer

preferences and

behaviours.

What is the impact?

• Reduced revenue

and profitability

• Deteriorating

cash flow

• Reduced market

How we manage it

• Continued strengthening of digital

expertise as part of omnichannel

capability

• Transformation Programme office

established and delivering key

strategic objectives

• Development of customer credit

propositions

• Development of omnichannel

capabilities

• Enhancement of data analytics

capabilities

• Robust portfolio governance

Changes since

last report

This risk has increased

over 2021/22. There

are a number of

critical projects to

deliver in support of

the business strategy.

3 Non-compliance with Financial Conduct Authority

(‘FCA’) and other financial services regulation

Risk owner:

Chief Commercial Officer

Risk category:

Regulatory

Risk movement:

Link to strategy

Considered in the

Viability statement:

Yes

What is the risk?

Failure to manage

the business of the

Group in compliance

with FCA regulation

and other financial

services regulation

to which the Group is

subject in a number

of areas including

the mobile insurance

operations and

consumer credit

activities of Currys

Retail Limited.

What is the impact?

• Enforcement action

by the regulator

• Loss of authorisation

and inability to trade

regulated products.

• Reputational

damage

• Financial penalties

• Reduced revenues

and profitability

• Deteriorating

cash flow

• Customer

compensation

How we manage it

• Board oversight and risk management

structures monitor compliance and

ensure that the Company’s culture

puts good customer outcomes first

• Senior Manager and Certification

Regime and if required CBI/other

regulators certification implemented

• Regulatory Compliance Committee,

Product Governance and other

internal governance structures

• Control structures to ensure

appropriate compliance

• Compliance monitoring and internal

audit review of the operation

and effectiveness of compliance

standards and controls

• Recruitment, remuneration and

training competency programmes,

• Conduct risk and control framework,

including defined minimum control

standards

Changes since

last report

This risk has remained

stable over 2021/22.

Principal risks

and uncertainties

Risk movement

Increased

Stable

Decreased

Link to strategy

Colleagues

Omnichannel

Customers for life

Governance

Financial Statements

Investor Information

Strategic Report

4 Data Protection

Risk owner:

Chief Information Officer

Risk category:

Regulatory

Risk movement:

Link to strategy

Considered in the

Viability statement:

Yes

What is the risk?

Major loss of

customer, colleague

or business sensitive

data.

Adequacy of internal

systems, policy,

procedures and

processes to comply

with the requirements

of EU General Data

Protection Regulation

(‘GDPR’).

What is the impact?

• Reputational

damage

• Financial penalties

• Reduced revenue

and profitability

• Deteriorating

cash flow

• Loss of competitive

advantage

• Customer

compensation

How we manage it

• The operation of a Data

Management Function to ensure

compliance with GDPR compliant

operational processes and controls

• The operation of a Data Protection

Office to ensure appropriate

governance and oversight on the

Group’s data protection activities

• Control activities operate over

management of customer and

employee data in accordance with

the Group’s data protection policy

and processes

• Investment in information security

safeguards and IT security controls

and monitoring

Changes since

last report

The risk has reduced

over 2021/22 due to

increased levels of

assurance over the

strength of the data

protection control

environment.

5 IT systems and infrastructure

Risk owner:

Chief Information Officer

Risk category:

Technology

Risk movement:

Link to strategy

Considered in the

Viability statement:

What is the risk?

A key system becomes

unavailable for a

period of time.

What is the impact?

• Reduced revenue

and profitability

• Deteriorating

cash flow

• Loss of competitive

advantage

• Restricted growth

and adaptability

• Reputational

damage

How we manage it

• Ongoing IT transformation to align

IT infrastructure to future strategy

• PEAK planning and preparation

to ensure system stability and

availability over high-demand

periods

• Individual system recovery plans in

place in the event of failure which

are tested in line with an annual

plan, with full recovery infrastructure

available for critical systems

• Long-term partnerships with ‘tier

1’ application and infrastructure

providers established

• Strengthening of Technology

leadership team

• A mature IT Service Design &

Transition process controls and

manages the transition of new and

changed services into production

Changes since

last report

This risk has remained

stable over 2021/22.

62 Currys plc Annual Report & Accounts 2021/22

6 Information security

Risk owner:

Chief Information Officer

Risk category:

Operational

Risk movement:

Link to strategy

Considered in the

Viability statement:

Yes

What is the risk?

Inadequate

governance and

control around

information security

could result in an

information security

breach compromising

the confidentiality,

integrity and/

or availability of

customer, colleague

or supplier data.

What is the impact?

• Reputational

damage

• Financial penalties

• Reduced revenue

and profitability

• Deteriorating

cash flow

• Customer

compensation

• Loss of competitive

advantage

How we manage it

• Significant investment in information

security safeguards, IT security

controls, monitoring, in-house

expertise and resources as part

of a managed information security

improvement plan

• Information security policy

and standards defined and

communicated

• Information Security and Data

Protection Committee and

Technology Risk Forum set up

with responsibility for oversight,

co-ordination and monitoring of

information security policy and risk

• Infosec training and awareness

programmes for employees

• Audit programme over key suppliers’

information security standards

• Introduction of enhanced security

tooling and operations

• Ongoing programme of penetration

testing

• Future Security Operations Centre

implemented

Changes since

last report

This risk has remained

stable over 2021/22.

7 Health and Safety

Risk owner:

Chief Operating Officer

Risk category:

Operational

Risk movement:

Link to strategy

Considered in the

Viability statement:

Yes

What is the risk?

Failure to prevent

injury or loss of life to

customers, colleagues,

contractors,

franchisee partners,

agency staff and

the public which may

have serious financial

and reputational

consequences.

What is the impact?

• Employee/customer

illness, injury or loss

of life

• Reputational

damage

• Financial penalties

• Legal action

• Ongoing

repercussions of

Covid-19

How we manage it

• Implementation of Covid-19

controls to protect colleagues in

the workplace and customers in the

retail estate, including continuous

monitoring of changing government

regulation in all jurisdictions

• Group Health and Safety strategy

• Comprehensive Health and Safety

policies and standards supporting

continued improvement

• Health and Safety governance

committee

• Operational Health and Safety

teams located across business units

• Risk assessment programme covering

retail, support centres, distribution

and home services

• Incident reporting tool and process

• Health and Safety training and

development framework

• Health and Safety inspection

programme

• Audit programme including factory

audits for own brand products and

third-party supply chains

Changes since

last report

This risk has decreased

over 2021/22, largely

attributable to

the suppression of

Covid-19.

Principal risks

and uncertainties continued

Risk movement

Increased

Stable

Decreased

Link to strategy

Colleagues

Omnichannel

Customers for life

Governance

Financial Statements

Investor Information

Strategic Report

8 Business Continuity

Risk owner:

Chief Information Officer

Risk category:

Operational

Risk movement:

Link to strategy

Considered in the

Viability statement:

What is the risk?

A major incident

impacts the Group’s

ability to trade and

business continuity

plans are not

effective, resulting

in an inadequate

incident response.

What is the impact?

• Reduced revenue

and profitability

• Deteriorating

cash flow

• Reputational

damage

• Loss of competitive

advantage

How we manage it

• Business continuity and crisis

management plans in place and

tested for key business locations

• Enablement of home working for

office-based and contact centre

colleagues

• Disaster recovery plans in place

and tested for key IT systems and

data centres

• Cross functional Crisis team

appointed to manage response

to significant events

• Major risks insured

• Group Business Continuity strategy

Changes since

last report

This risk has remained

unchanged over

2021/22.

9 Tax liabilities

Risk owner:

Chief Financial Officer

Risk category:

Financial

Risk movement:

Link to strategy

Considered in the

Viability statement:

Yes

What is the risk?

Crystallisation

of potential tax

exposures resulting

from legacy corporate

transactions,

employee and sales

taxes arising from

periodic tax audits

and investigations

across the various

jurisdictions in which

the Group operates.

What is the impact?

• Financial penalties

• Reduced cash flow

• Reputational

damage

How we manage it

• Board and internal committee

oversight actively monitors tax

strategy and tax disputes

• Appropriate engagement of

third-party specialists to provide

independent advice where deemed

appropriate

• The Group remains committed to

achieving a resolution with HMRC

in relation to open tax enquiries

Changes since

last report

This risk has remained

unchanged over

2021/22.

10 Product Safety

Risk owner:

Chief Operating Officer

Risk category:

Operational

Risk movement:

Link to strategy

Considered in the

Viability statement:

What is the risk?

Unsuitable procedures

and due diligence

regarding product

safety, particularly

in relation to OEM

sourced product, may

result in poor quality

or unsafe products

provided to customers

which pose risk to

customer health and

safety.

What is the impact?

• Financial penalties

• Reduced cash flow

• Reputational

damage

How we manage it

• Factory Audits conducted over

OEM suppliers

• Technical Evaluation of OEM

products prior to production

• Product inspection of OEM products

prior to shipment

• Monitoring of reported incidents

• Safety Governance reviews

conducted by internal by Technical

and Business Standards teams

• Establish protocols and procedures

to manage product recalls

Changes since

last report

This risk remains

unchanged over

2021/22.

64 Currys plc Annual Report & Accounts 2021/22

Principal risks

and uncertainties continued

11 Our commitment to Sustainability

Risk owner:

Chief People, Communications

& Sustainability Officer

Risk category:

Operational

Risk movement:

Link to strategy

Considered in the

Viability statement:

What is the risk?

Our commitment

to sustainability

and being a good

corporate citizen is

either not delivered

or not adequately

communicated

to or recognised

by customers and

investors.

What is the impact?

• Reduced cash flow

as customers shop

elsewhere

• Reputational

damage

• Loss of competitive

advantage

How we manage it

• Roadmap to net zero

(1)

by 2040

• Commitment to EV100

• Oversight from ESG Committee,

ExCo and the Board

• Group ESG strategy regularly

reviewed

• Maintenance of a brand tracker

• Commitment to TCFD

• Independent reviews on

environmental practices e.g. CDP

Changes since

last report

This risk has decreased

over 2021/22 reflecting

the progress made

advancing our ESG

initiatives.

12 People

Risk owner:

Chief People, Communications

& Sustainability Officer

Risk category:

People

Risk movement:

Link to strategy

Considered in the

Viability statement:

What is the risk?

Not having the right

workforce capacity,

capability, and

colleague commitment

necessary to deliver

on our strategy.

What is the impact?

• Reduced revenue

and profitability

• Failure to achieve

strategic objectives

without strong

leadership

and capable

and committed

colleagues

How we manage it

• Strengthening leadership capability

and succession

• Increasing colleague capability

and engagement to deliver against

customer promise

• Approach for remuneration and

incentives that supports a high-

performance culture, reinforces

the right behaviours aligned to

our values and supports selling

responsibility to customers

• Frequent Pulse Engagement surveys

• Perform and Transform Forum

Changes since

last report

This risk remains

unchanged over

2021/22.

Risk movement

Increased

Stable

Decreased

Link to strategy

Colleagues

Omnichannel

Customers for life

(1) Net zero is defined in the Glossary and definitions section on page 245.

Governance

Financial Statements

Investor Information

Strategic Report

Going concern and

viability statement

Going Concern

For further information on Going Concern,

see note 1 to the financial statements on

page 168.

FURTHER

INFORMATION

Going concern

A review of the Group’s business activities,

together with the factors likely to affect

its future development, performance, and

position, are set out within this Strategic

Report, including the risk management

section. The financial position of the

Group, its cash flows, liquidity position

and borrowing facilities are shown in

the balance sheet, cash flow statement

and accompanying notes to the Annual

Report and Accounts. The directors have

outlined the assessment approach for

going concern in the accounting policy

disclosure in note 1 of the consolidated

financial statements. Following that review

the directors have concluded that the

going concern basis remains appropriate.

Viability statement

In accordance with the UK Corporate

Governance Code, the directors have

assessed the viability of the Group over a

period longer than the 12 months covered

by the ’Going Concern’ provision above.

The directors, in making the assessment

that three years was appropriate,

considered the current financial and

operational positions of the Group,

the potential impact of the risks and

uncertainties as outlined on pages 58

to 64 of the Strategic Report and the

uncertainty regarding the recovery from

the Covid-19 pandemic, the impact from

inflation exacerbated by the conflict in

Eastern Europe plus the further mitigating

actions available to the Board.

The Board concluded that a period of

three years was appropriate for this

assessment as this period is covered by

the Group’s strategic planning process,

which is updated annually, and reflects

the period where there is greater certainty

of cash flows associated with the Group’s

major revenue streams.

The strategic plan considers the forecast

revenue, EBITDA, working capital, cash

flows and funding requirements on a

business by business basis, which are

assessed in aggregate with reference

to the available borrowing facilities to

the Group over the assessment period

including seasonal cash flow and

borrowing requirements on a monthly

basis and the financial covenants to

which those facilities need to comply.

The model assessed by the directors has

been derived from the Board-approved

annual Group budget for 2022/23, and

Board-approved strategic plan for the

remaining two year period. These forecasts

have been subject to robust stress-testing,

modelling the impact of a combination of

severe but plausible adverse scenarios

based on those principal risks facing the

Group, including specific consideration of

a range of impacts that could arise from

the continued Covid-19 pandemic and the

impact from inflation exacerbated by the

conflict in Eastern Europe. These scenarios

included a downside risk to sales across

the group to reflect the risk caused by

the current macroeconomic environment

with rising energy costs, interest rates, and

inflation that could place additional

pressure on consumer spending as well

as the supply chain risks associated with

the Covid-19 pandemic and the conflict

in Eastern Europe.

Going concern is the basis of preparation of the financial statements that assumes an

entity will remain in operation for a period of at least 12 months from the date of approval

of the financial statements. The viability statement takes account of the company’s

current position and principal risks, stating whether there is a reasonable expectation

that the Company will be able to continue in operation and meet its liabilities as they

fall due over a longer term than the going concern period.

As part of this analysis, mitigating actions

within the Group’s control have also been

considered. These forecast cash flows

indicate that there remains sufficient

headroom in the viability period for the

Group to operate within the committed

facilities and to comply with all relevant

banking covenants.

As well as focusing on the potential

downside to sales caused by the current

macroeconomic environment, these

scenarios also included other principal

risks such as regulation or information

security incidents and reduced forecast

profitability and cash flow as a result in a

significant change in consumer behaviour.

The model assumes no further funding

facilities are required over and above

those currently committed to the Group

as disclosed in note 18 to the Annual

Report and Accounts.

Based on the results of this analysis,

the directors have an expectation that

the Group will be able to continue in

operation and meet its liabilities as they

fall due over the three year period of their

assessment. In doing so, it is recognised

that such future assessments are subject

to a level of uncertainty and as such

future outcomes cannot be guaranteed

or predicted with certainty.

66 Currys plc Annual Report & Accounts 2021/22

£116m

£156m

£186m

2021/22

2020/21

2019/20

£(140)m

£33m

£126m

2021/22

2020/21

2019/20

6.70p

10.70p

11.90p

2021/22

2020/21

2019/20

(13.90)p

0.00p

6.30p

2021/22

2020/21

2019/20

14%

(3)%

2021/22

2020/21

2019/20

£10,170m

£10,344m

£10,144m

2021/22

2020/21

2019/20

£109m

£438m

£72m

2021/22

2020/21

2019/20

Key performance

indicators

Financial

What we measure and why it’s key

Like-for-like (LFL) revenue growth is the

revenue growth of the business using a constant

currency, adjusted for new and closed stores

and other changes in business. The metric

enables us to measure the underlying trading

performance of the Group on a consistent

year-on-year basis.

Performance in 2021/22

LFL revenue decline due to the expected

decline in mobile revenue within UK & Ireland

and the Group having benefited from

particularly strong performance during

lockdown periods in the prior year.

What we measure and why it’s key

Sustainable growth of profit before tax and adjusting items represents

a clear measure of performance against our strategic priorities and

an indication of how we create long term value for all stakeholders.

Performance in 2021/22

On an adjusted and statutory basis, profit before tax increased during

the year due to sales mix and improved cost control.

What we measure and why it’s key

Adjusted basic EPS represents the profit after tax, but before adjusting

items, attributable to each share after taking into account the change in

number of shares in issue from year to year. The level of growth provides

a clear measure of the financial health of the Group and its ability to

deliver returns to shareholders each year.

Performance in 2021/22

Continued growth in adjusted basic EPS driven by increased profit

before tax combined with a stable tax rate and reduced share count

during the year.

What we measure and why it’s key

Revenue represents total revenue generated

by the Group with sustainable growth being

an important measure of our brands appeal

and competitive position.

Performance in 2021/22

Group revenue declined (2)% on a reported

basis due to the LFL decline and closure of

the Carphone Warehouse Ireland business

at the end of the prior year.

What we measure and why it’s key

Free cash flow represents available cash after

operational cash outflows, cash tax and interest

paid and capital investment but before pension

contributions. It is a measure of the Group’s ability

to both generate cash and efficiently manage

working capital such that it optimises cash

resources available for the Group to invest in its

future growth and to generate shareholder return.

Performance in 2021/22

Investment in working capital to lock in price and

secure supply resulted in a reduction in free cash

flow while the prior year benefited from large

working capital inflows as the mobile network

receivable unwound and the Group held lower

stock at the reporting date.

LFL Revenue growth

(1)

(3)%

Adjusted profit

before tax

(1)

£186m

Adjusted earnings

per share

(1)

11.90p

Statutory profit/(loss)

before tax

(3)

£126m

Statutory earnings/(loss)

per share

(3)

6.30p

Revenue

£10,144m

Free cash flow

(1),(2)

£72m

Our ten Key Performance Indicators (KPIs) comprise a balanced set of financial and non-financial metrics that are consistent with

our strategy and vision and enable management to evaluate the Group’s strategic performance. Statutory equivalents of our KPIs

are provided where relevant.

(1) Alternative Performance Measure. Definitions, purpose and reconciliations to the closest statutory equivalent for our Alternative Performance Measures are provided

within the Glossary and definitions on pages 231 to 245.

(2) The directors consider free cash flow to be a useful measure as, unlike statutory equivalents, it is a good indicator of cash generated from continuing operations which

is available to fund future growth or be distributed to shareholders.

(3) Statutory profit/(loss) before tax and statutory earnings/(loss) per share are not KPIs but are presented to give additional useful information to users on the

performance of the business.

(4) Net zero is defined in the Glossary and definitions section on page 245.

Governance

Financial Statements

Investor Information

Strategic Report

+64

+65

+66

2021/22

2020/21

2019/20

103k

2021/22

2020/21

2019/20

+62

+68

+77

2021/22

2020/21

2019/20

26.5%

24.7%

25.6%

2021/22

2020/21

2019/20

26.0%

26.8%

25.9%

2021/22

2020/21

2019/20

36,863

35,321

21,346

2021/22

2020/21

2019/20

What we measure and why it’s key

We calculate the reduction in Scope 1 and

2 greenhouse gas emissions, in line with the

standards of the Green House Gas Protocol

and using the methodology set out in Defra’s

Environmental Reporting Guidelines, by reference

to the Groups total emissions in financial year

2019/20 as the clearest measure of our progress

to achieving net zero emissions by 2040.

Performance in 2021/22

The Group made substantial progress in

reaching net zero by reducing scope 1 and 2

tonnes of CO

e emissions by 42.1% against the

2019/20 baseline driven largely by a switch to

renewable electricity in our Greek operations.

Changes to KPIs

Net zero

(4)

by 2040 (Scope 1 & 2 tonnes CO

e) and tonnes of electrical reuse and recycling have been added as sustainability is a

central part of our vision. Wehave also pivoted to LFL revenue growth from our previous LFL Electricals revenue growth KPI following

consolidation of the previously disclosed UK & Ireland Electricals and UK & Ireland Mobile reportable segments as mobile is no

longer reported separately.

Non-Financial

What we measure and why it’s key

Market share is the clearest indicator that the proposition we are delivering to customers is more

appealing than the competition. Market share is defined as the Group’s product sales relative

to total consumer sales of technology products in each market.

Performance in 2021/22

In the UK we gained 0.9% of market share as stores remained open. Compared to two years ago

we have gained 2 ppts share in both store and online markets, but overall share declined as the

market shifted online.

Increased competitive pressure on price and availability across the Nordics meant that sales

underperformed the market but we remain market leader in all regions.

What we measure and why it’s key

Customer satisfaction a key indicator how

we’re performing. NPS is the percentage of

Promoters minus Critics answering the question

‘How likely are you to recommend Currys.com

to a friend or colleague?’

Performance in 2021/22

NPS improved 2.3 points in UK & Ireland which

more than offset the marginal decline in

Nordics and Greece.

What we measure and why it’s key

Tonnes of e-waste collected across our Group

for reuse or recycling is a key indicator of our

progress in creating circular business models

and reducing the impact that used electronics

have on the environment. It is the sum of all

electronics received via trade-in and recycling

services from customers.

Performance in 2021/22

Tonnes of electrical reuse and recycling was

flat year-on-year.

What we measure and why it’s key

Our capable and committed colleagues are

our greatest advantage. Keeping colleagues

engaged drives better experiences for

customers.

Our Employee Satisfaction measure is

measured through our colleague’s response

to the question ‘How happy are you working

at Currys?’ and forms just one part of our

employee engagement survey that enables

our colleagues to provide honest and

open feedback.

Performance in 2021/22

Employee engagement increased 9 points as

investment in training, well-being and reward

drove a significant increase in the number of

employees who are happy working for Currys

in UK & Ireland, Nordics and Greece.

Currys market share

25.6%

Net Promoter Score

(‘NPS’)

+66

Colleague

engagement

+77

Nordics market share

25.9%

Net zero by 2040

(scope 1 & 2 tonnes CO

42.1%

Tonnes of electrical reuse

and recycling

103k

68 Currys plc Annual Report & Accounts 2021/22

Performance review

2021/22

All figures are year-on-year unless stated. There are a number of non-GAAP measures and alternative proﬁt measures

“APMs” discussed within this announcement. Adjusted results are consistent with how business performance is measured internally

and presented to aid comparability of performance. Discussion of statutory performance is shown within each segment and for

the overall Group. Refer to the glossary and definitions section set out at the end of this report for further details on definition,

purpose, and reconciliation to nearest statutory measure.

Group sales were in-line with last year on a currency neutral basis, as +3% growth in our

International business was offset by a (3)% decline in UK & Ireland due to the anticipated

reduction in mobile revenue. Adjusted EBIT increased 5% to £274m with growth in UK & Ireland

and Greece offset by declines in the Nordics against the very strong performance last year.

Income statement

2021/22

£m

2020/21

£m % change

Currency

neutral

% change

Adjusted revenue 10,122 10,330

Revenue 10,144 10,344 (2)% -%

Adjusted EBITDA 588 598 (2)% -%

Adjusted EBITDA margin 5.8% 5.8% - bps - bps

Depreciation on right-of-use assets (190) (200)

Depreciation on other assets (62) (79)

Amortisation (62) (57)

Adjusted EBIT 274 262 5% 6%

Adjusted EBIT margin 2.7% 2.5% 20 bps 20 bps

Interest on right-of-use assets (70) (77)

Finance income 2 6

Adjusted finance costs (20) (35)

Adjusted PBT 186 156 19% 21%

Adjusted PBT margin 1.8% 1.5% 30 bps 30 bps

Adjusted tax (51) (33)

Adjusted Profit after tax 135 123

Adjusted EPS 11.9p 10.7p

Statutory Reconciliation

Adjusting items to EBITDA (28) (89)

EBITDA 560 509

Adjusting items to depreciation and amortisation (24) (26)

EBIT 222 147 51% 55%

EBIT Margin 2.2% 1.4% 80 bps 80 bps

Adjusting items to finance costs (8) (8)

PBT 126 33

Adjusting items to tax (4) –

Discontinued operations – 12

Profit after tax 71 12

EPS – total 6.3p 1.0p

Governance

Financial Statements

Investor Information

Strategic Report

Operating cash flow increased +7% to £361m for the year, largely driven by a reduction in cash payments for leases. Net adjusting

items to cash flow reduced from £(173)m to £(33)m as restructuring outflows reduced significantly and cash payments for closed

stores were partially offset by £53m one-off cash inflows for historic settlements. Capital expenditure increased to £133m following

the resumption of a number of projects that were paused during the prior year’s lockdown periods. Free cash flow excluding working

capital totalled £160m, after two years of outflow. Working capital outflow was £(88)m (2020/21: inflow of £454m), as the business

made moderate investments in stock to secure stock as good prices. The prior year benefited from a large capital inflow due to

early repayment of network debtor by EE.

Total free cash flow generated was £72m which after pension contributions, returns to shareholders and other payments resulted

in cash outflows of £(125)m, leading to a year-end net cash position of £44m.

Cash flow

2021/22

£m

2020/21

£m

Reported

% change

Currency

neutral

% change

Adjusted EBITDAR 602 611 (1)% -%

Adjusted EBITDAR margin 5.9% 5.9% - bps - bps

Cash payments of leasing costs, debt & interest

(1)

(263) (288)

Other non-cash items in EBIT 22 15

Operating cash flow

(1)

361 338 7% 2%

Operating cash flow margin 3.6% 3.3% 30bps 30bps

Capital expenditure (133) (122) (9)%

Adjusting items to cash flow

(1)

(33) (173) 81%

Segmental free cash flow before working capital 195 43

Working capital (88) 454

Segmental free cash flow 107 497 (78)% (77)%

Cash tax paid (18) (35)

Cash interest paid (17) (24)

Free cash flow 72 438 (84)% (83)%

Shareholder returns

(2)

(78) –

Purchase of own shares by EBT (41) (13)

Pension (78) (47 )

Other – (5)

Movement in net cash (125) 373

Net cash 44 169

(1) Cash payments of leasing cost, debt and interest exclude non-trading stores.

(2) Comprise £46m of dividends and £32m share buyback.

Online Share of Business 2021/22 2020/21 2019/20

Year-on-Year

(%pts)

Year-on-2-Year

(%ppts)

UK & Ireland 45% 65% 32% (20)% 13%

International 23% 28% 18% (5)% 5%

- Nordics 25% 29% 19% (4)% 6%

- Greece 9% 21% 8% (12)% 1%

Group 35% 48% 27% (13)% 8%

70 Currys plc Annual Report & Accounts 2021/22

Performance review

2021/22 continued

UK and Ireland

Income statement

2021/22

£m

2020/21

£m % change

Currency

neutral

% change

Income Statement

Adjusted revenue 5,463 5,628 (3)% (3)%

Revenue 5,485 5,642 (3)% (3)%

Adjusted EBITDA 280 291 (4)% (3)%

Adjusted EBITDA margin 5.1% 5.2% (10) bps (10) bps

Depreciation on right-of-use assets (100) (110)

Depreciation on other assets (29) (46)

Amortisation (40) (4 3)

Adjusted EBIT 111 92 21% 22%

Adjusted EBIT margin 2.0% 1.6% 40 bps 40 bps

Adjusting items to EBIT (40) (103)

EBIT 71 (11) n/a n/a

EBIT margin 1.3% (0.2)% 150 bps 150 bps

Cash flow

Adjusted EBITDAR 289 298 (3)% (2)%

Adjusted EBITDAR margin 5.3% 5.3% - bps 10 bps

Cash payments of leasing costs, debt & interest

(1)

(155) (168)

Other non-cash items in EBIT 18 8

Operating cash flow

(1)

152 138 10% 10%

Operating cash flow margin 2.8% 2.5% 30 bps 30 bps

Capital expenditure (65) (60) (8)%

Adjusting items to cash flow

(1)

(33) (173) 81%

Segmental free cash flow before working capital 54 (95)

Network Debtor 71 391

Working capital (16) (26)

Segmental free cash flow 109 270 (60)% (60)%

(1) Cash payments of leasing cost, debt and interest exclude non-trading stores.

Total UK & Ireland like-for-like sales

declined (4)% due to the expected

decline in mobile revenue and lower

in-year revenue in iD Mobile. UK & Ireland

like-for-like electrical category sales

were down (4)% compared to last year

but up +13% compared to two years ago.

Total revenue was down (3)% due to the

like-for-like decline and closure of the

Carphone Warehouse Ireland business at

the end of the prior period offset by an

increase in non-product revenue which is

excluded from like-for-like. During the year,

five UK stores were permanently closed.

During the period, the online share of

business was +45%, down (20)ppts on

last year as store sales grew +61% having

been closed for significant periods of

the prior year. Compared to two years

ago online share of business was up

+13ppts as customers have benefited

from the improvement to our omnichannel

propositions.

Domestic appliance sales benefited from

the reopening of our stores and were the

strongest performing category across

the year, with strong growth in almost all

areas of white goods and sales up slightly

on two years ago. Consumer electronics

were down during the year with particular

weakness in smaller screen TVs where

there was heightened promotional activity

in the market. As a category, consumer

electronics has seen the least uplift in sales

during the pandemic. In computing, sales

were below last year as strength in gaming

and accessories was offset by declines

in laptops and tablets. Compared to two

years ago, overall computing sales were

up almost one-quarter and the shorter

replacement cycle we are seeing points

to a sustainably larger market.

Currys UK market share

(2)

was 25.6%,

up +90bps compared to last year as

customers returned to stores. Compared

to two years ago, our overall share is

down (90)bps due to the market shift to

online but we have gained +2ppts share

in both stores and online. Simply holding

share in both channels would have

resulted in our sales being 7% lower.

Our performance in Republic of Ireland

was weaker as stocking issues related to

Brexit impacted both sales and margin

during the year.

Adjusted UK&I EBIT increased +£19m to £111m,

which included isolated impacts to profit

of £(39)m for business rates tax, £(20)

m as changes in iD contract terms drove

lower in-year revenue (without impacting

the underlying economics of iD Mobile)

and £(15)m for changes to reflect IT cloud

(2) Source: GfK

Governance

Financial Statements

Investor Information

Strategic Report

expenditure. Against this, there was a £22m

year-on-year benefit from the network

debtor revaluation and settlements.

Excluding the offsetting isolated impacts,

gross margins improved by +110bps including

a headwind of (70)bps from inflationary

increases in wages and shipping, offset

by +30bps of cost savings and +40bps

positive impact from network debtor

revaluation. The strong positive remaining

change was driven by the benefit of stores

reopening and increased adoption rates in

strategic focus areas of credit and services.

Excluding the (100)bps impact of isolated

profit impacts, the operating expense to

sales ratio improved by +30bps as a (30)

bps headwind from inflation was more

than offset by store payroll, goods-not-

for-resale, IT and central cost savings as

well as lower depreciation charges.

In the period, adjusting items to EBIT

totalled £(40)m. Strategic change costs of

£6m including restructuring and rebranding

that were partially offset by the release

of property provisions no longer required

following the early exit from previously

closed stores. Impairment losses and

onerous contracts of £62m related to

right-of-use, intangible assets and IT

contracts. Amortisation of acquisition

intangibles totalled £(13)m. These costs

have been partially offset by £22m of

positive out of period network debtor

revaluations and credits relating to the

one-off settlements from third parties.

The total gross cash outflow was £86m,

offset by £53m of settlements received.

EBIT for the period increased by £82m to

£71m.

EBITDAR was broadly in line with last year,

while cash leasing costs declined due to

an average net effective rent reduction

of (41)% obtained on the 40 stores

renewed during the year, the closure of

the Carphone Warehouse Ireland business

at the end of the prior period and a small

benefit from timing of rent payments.

Non-cash items increased, as prior year

included £6m profit on disposal of assets.

This resulted in operating cash flow

increasing +10% to £152m.

Capital expenditure was £65m, with

significant areas of expenditure including

supply chain, new websites and branding

investments. Adjusting items to cashflow

are described above. Network Debtor

cash flow was £71m from £391m last

year, as the mobile revenue decline

decelerated, and the prior year benefited

from the early network debtor repayment

by EE. Working capital outflow of £(16)m

is largely a result of timing of cash receipts

and payments. In combination, this

resulted in segmental free cash flow

of £109m, £(161)m lower than last year.

2021/22 £m 2020/21 £m

P&L Cash P&L Cash

Mobile network debtor revaluations 22 – 14 –

Acquisition/disposal related items (13) (1) (14) (2)

Strategic change programmes (6) (63) (41) (153)

Impairment losses and onerous contracts (62) (20) (100) (16)

Regulatory 1 (1) 7 (4)

Other 18 52 31 2

Total (40) (33) (103) (179)

72 Currys plc Annual Report & Accounts 2021/22

Income statement

2021/22

£m

2020/21

£m % change

Currency

neutral

% change

Revenue 4,105 4,186 (2)% 2%

Adjusted EBITDA 264 267 (1)% 1%

Adjusted EBITDA margin 6.4% 6.4% - bps (10) bps

Depreciation on right-of-use assets (76) (77)

Depreciation on other assets (27) (27)

Amortisation (19) (12)

Adjusted EBIT 142 151 (6)% (5)%

Adjusted EBIT margin 3.5% 3.6% (10) bps (20) bps

Adjusting items to EBIT (12) (12)

EBIT 130 139 (6)% (5)%

EBIT margin 3.2% 3.3% (10) bps (20) bps

Cash flow

Adjusted EBITDAR 267 271 (1)% 1%

Adjusted EBITDAR margin 6.5% 6.5% - bps - bps

Cash payments of leasing costs, debt & interest (90) (100)

Other non-cash items in EBIT 4 5

Operating cash flow 181 176 3% 5%

Operating cash flow margin 4.4% 4.2% 20 bps 10 bps

Capital expenditure (56) (52) (8)%

Adjusting items to cash flow: – – -%

Segmental free cash flow before working capital 125 124

Working capital (113) 64

Segmental free cash flow 12 188 (94)% (91)%

Revenue grew by +2% on a currency

neutral basis, with a like-for-like sales

decline of (2)%. During the year, we

opened a net total of seven stores

including four in Sweden and three

franchise stores. Against two years ago,

currency neutral sales grew +17%, driven

by +15% like-for-like growth.

Online sales declined (14)% but remained

+50% larger than two years ago, with

online now contributing to 25% of sales,

down (3)ppts on last year but up +6ppts

compared to two years ago.

The overall market share was 25.9%,

a decline of (90)bps (1H: (140)bps,

2H: (40)bps) compared to last year but

broadly flat over the last two years as we

have taken share online and in-store to

overcome the market shift towards online.

Sale of domestic appliances saw

continued growth with customers moving

towards higher specification and energy

saving products, this category has seen

largest improvement since the start of

the pandemic. Computing sales were in

line with last year as VR gaming proved

a very popular area. Against strong

trading during the pandemic, consumer

electronics decreased across most

areas with only the smart home segment

in growth during the year. TVs declined

overall but demand for home cinema

experiences was evidenced through

strong growth of 70”+ TVs, while noise

cancelling headphone proved popular

for people returning to busy environments.

Gross margin was flat as increased

logistics costs were offset by positive

impact of stores increased share of

business. The operating expense to sales

ratio was down (10)bps year-on-year as

lower government support, extra costs of

new stores and temporarily running dual IT

systems was offset by operating leverage

and ongoing cost efficiencies.

As a result, adjusted EBIT decreased by

£(9)m to £142m, from £151m in 2020/21.

Compared to two years ago, EBIT has

increased by +£16m.

In the period, adjusting items to EBIT

totalled £(12)m, this was entirely due to

the amortisation of acquisition intangibles

and had no cash impact. EBIT decreased

£(9)m to £130m.

Nordics

Performance review

2021/22 continued

Governance

Financial Statements

Investor Information

Strategic Report

The operating cash flow increased by

3% to £181m, driven by lower cash leasing

costs as payment profiles normalised

with the prior year impacted by timing

of 2019/20 payments deferred due

to Covid-19, and foreign exchange, as

EBITDAR was broadly inline year on year.

Capital expenditure was £56m, with

significant areas of expenditure including

our Next Generation Retail platform

and store refits. Working capital was an

outflow of £(113)m as the business made

strategic decision to invest in stock to

secure good prices and availability for

our customers.

25%

of sales in the Nordics

are online

+17%

Currency neutral sales growth

against two years ago

74 Currys plc Annual Report & Accounts 2021/22

Performance review

2021/22 continued

Income statement

2021/22

£m

2020/21

£m % change

Currency

neutral

% change

Revenue 554 516 7% 13%

Adjusted EBITDA 44 40 10% 18%

Adjusted EBITDA margin 7.9% 7.8% 10 bps 40 bps

Depreciation on right-of-use assets (14) (13)

Depreciation on other assets (6) (6)

Amortisation (3) (2)

Adjusted EBIT 21 19 11% 22%

Adjusted EBIT margin 3.8% 3.7% 10 bps 20 bps

Adjusting items to EBIT – –

EBIT 21 19 11% 22%

EBIT margin 3.8% 3.7% 10 bps 20 bps

Cash flow

Adjusted EBITDAR 46 42 10% 15%

Adjusted EBITDAR margin 8.3% 8.1% 20 bps 10 bps

Cash payments of leasing costs, debt & interest (18) (20)

Other non-cash items in EBIT – 2

Operating cash flow 28 24 17% 26%

Operating cash flow margin 5.1% 4.7% 40 bps 60 bps

Capital expenditure (12) (10) (20)%

Adjusting items to cash flow – – -%

Segmental free cash flow before working capital 16 14

Working capital (30) 25

Segmental free cash flow (14) 39 n/a n/a

Revenue increased +13% on a currency

neutral basis, with like-for-like sales

growth of +4%. Against two years ago,

like-for-like revenue grew +14%.

Online sales declined (51)% during the

year but remained 40% larger than two

years ago. The decline was more than

offset by in-store sales which increased

+47% as stores remained open for the

full period, with prior year impacted by

Government enforced store closures.

We opened two stores in Cyprus which

have performed well, we will open more

in the future.

Sales were up in almost all categories

with particularly strong growth in Air

Conditioning sales due to the hot summer.

The Government’s Digital Care initiative

continued to drive growth in Telecoms and

Tablet sales while Computing sales were

down marginally although remained +29%

higher than two years ago.

Gross margin was up +200bps over prior

year as a result of higher product margin

driven by the shift back to in-store sales

and strong performance of new insurance

products. Operating costs increased to

meet sales demand and energy costs

increased while government support

declined following the end to furlough

schemes and Government backed rent

reductions.

As a result, adjusted EBIT increased +11%

to £21m, from £19m in 2020/21. There were

no adjusting items to EBIT, resulting in EBIT

of £21m.

The operating cash flow was £28m,

up from £24m in the prior year due

to improved EBITDAR and reduced

cash payments for leases. Capital

expenditure was £12m, with significant

areas of expenditure including digital

transformation and property. Working

Capital outflow of £(30)m was driven

by increased stock balances at the end

of the period having secured supply

of cooling products for the upcoming

Government subsidy programme, and

laptops for the Government’s Digital Care

expansion with teachers also to be

granted a €200 coupon to spend.

Greece

Governance

Financial Statements

Investor Information

Strategic Report

Interest on lease liabilities was £(70)m, a slight decrease on prior year due to lower lease liabilities, the cash impact of this interest

is included within segmental free cash flow.

The adjusted net finance costs were lower than last year, due to the Group’s improved average cash position and the prior year

including a write-off of arrangement and extension fees on legacy facilities that were replaced during refinancing in April 2021.

The net cash impact of these costs was £(17)m, from £(24)m in the prior year due to the higher average cash position, right sizing

of available facilities to reflect lower debt levels at the end of the prior year and reduced costs of hedging.

The finance costs on the defined benefit pension scheme is an adjusting item and is flat year-on-year in line with the assumptions

used in the valuation of the pension obligations.

2021/22

£m

2020/21

£m

Interest on lease liabilities (70) (77)

Finance income 2 6

Finance costs (20) (35)

Adjusted net finance costs (88) (106)

Finance costs on defined benefit pension schemes (8) (8)

Net finance costs (96) (114)

Reported Profits

Profit before tax has increased +282% to £126m. This is driven by the +51% increase in EBIT to £222m and a (16)% reduction in finance

costs to £(96)m. The increase in EBIT is explained within the segmental analysis, while the finance costs are described above.

The overall reduction in impact of adjusting items is primarily as a result of lower impairment losses and decreased restructuring costs

in the UK&I segment.

Tax

The full year adjusted effective tax rate of 27% was higher than the previous year rate of 21% due to the movement in unprovided

deferred tax and prior year adjustments. Taxation payments of £18m (2020/21: £35m) were lower due to deferral of Norwegian

payments following an internal reorganisation.

Finance Costs

76 Currys plc Annual Report & Accounts 2021/22

Performance review

2021/22 continued

2021/22

£m

2020/21

£m

Reported

% change

Currency

neutral

% change

Adjusted EBITDAR 602 611 (1)% -%

Cash payments of leasing costs, debt & interest (263) (288)

Other non-cash items in EBIT 22 15

Operating cash flow 361 338 7% 8%

Capital expenditure (133) (122) (9)%

Adjusting items to cash flow (33) (173) 81%

Segmental free cash flow before working capital 195 43

Working capital and network commissions (88) 454

Segmental free cash flow 107 497 (78)% (77)%

Cash tax paid (18) (35)

Cash interest paid (17) (24)

Free cash flow 72 438 (84)% (83)%

Shareholder returns (78) –

Net purchase of shares by EBT (41) (13)

Pension (78) (47 )

Other – (5)

Movement in net debt (125) 373

Opening net cash/(debt) 169 (204)

Closing net cash/(debt) 44 169

Segmental free cash flow was an inflow

of £107m (2020/21: £497m), and after

cash and interest outflows of £(35)m

which are described above, resulted in

free cash flow of £72m (2020/21: £438m).

During the year £78m was returned to

shareholders, comprising £32m of shares

repurchased and cancelled as part of the

previously announced share buyback and

£46m of dividends paid. The employee

benefit trust also acquired £41m of shares

to satisfy colleague share awards that

vested in year or are expected to vest in

future periods.

Pension contributions of £78m (2020/21:

£47m) were higher than prior year as we

ended the reduced contribution agreed

with the pension Trustees during Covid-19.

The closing net cash position was £44m

compared to a net cash position of

£169m at 1 May 2021. This included £30m

of restricted cash (2020/21: £35m). The

average net cash for the year was £290m

(2020/21: £280m).

The Board has proposed a final dividend

of 2.15p per ordinary share for the year

ended 30 April 2022. The dividend

will be paid on 16 September 2022 to

shareholders registered at the close of

business on 5 August 2022. The ex-dividend

date will be 4 August.

Cash flow

Governance

Financial Statements

Investor Information

Strategic Report

30 April 2022

£m

1 May 2021

£m

Goodwill 2,814 2,851

Other fixed assets 1,554 1,661

Network commission receivables and contract assets 190 239

Working capital (532) (684)

Net cash/(debt) 44 169

Net lease liabilities (1,263) (1,322)

Pension (257) (4 8 2)

Deferred tax 74 100

Provisions (59) (85)

Other (64) (66)

Net assets 2,501 2,381

Goodwill decreased £37m in the period

to £2,814m due to currency revaluation of

Nordics goodwill.

Other fixed assets decreased by £(107)

m since 1 May 2021 as additions of £320m

were more than offset by amortisation and

depreciation of £(338)m and impairments

of £(65)m, primarily over right-of-use

and intangible assets in UK & Ireland.

These impairments primarily related to

non-trading right-of-use assets no longer

occupied and software development

costs that related to our credit-based

mobile offer which we discontinued after

it fell below the hurdle rates we required

for continued investment.

Network commission receivables and

contract assets decreased by £(49)m as

the amount of new revenue capitalised

was lower than payments received.

At year-end, total working capital

was £(532)m. Group inventory was

£1,286m, higher than prior year as the

Group invested to lock in price and

secure the supply of scarce stock to

mitigate potential supply chain and

inflationary headwinds next year while

trade payables increased by +£194m to

£(1,614)m (2020/21: £(1,420)m) for the

same reasons. Over the year stock turn

decreased from 6.8 to 6.4 as more sales

were in store (that has naturally slower

stock turn) and availability improved.

Trade payable days increased from 73 to

77 since 1 May 2021 while trade receivable

days decreased from 32 to 22.

Other receivables increased by +£101m

(2020/21: £192m) since 1 May 2021 due

to additional accrued income driven

by a change in contractual terms for

iD Mobile and prepayments for project

license fees. Other payables fell by

£60m predominantly due to lower

payroll accruals and a reduced UK&I

right-to-return liability due to lower

online sales.

30 April 2022

£m

1 May 2021

£m

Inventory 1,286 1,178

Trade Receivables 336 294

Trade Payables (1,614) (1,420)

Trade working capital 8 52

Other Receivables 293 192

Other Payables (850) (910)

Derivatives 17 (18)

Working capital (532) (684)

The Group closing cash position reduced

by £125m to £44m for reasons explained

within the cash flow analysis above.

Lease liabilities reduced mainly due to

the early exit of our closed standalone

Carphone Warehouse stores in both the

UK and Ireland while lease cash payments

exceeded the present value of leases

renewed on improved terms. Of the 69

Carphone Ireland stores closed in April

2021, 65 leases were exited in the year.

The IAS 19 accounting deficit of the

defined benefit section of the UK pension

scheme amounted to £257m (2020/21:

£482m). The deficit decrease was largely

driven by an increase in the discount

rate applied to future liabilities and

contributions of £78m (2020/21: £47m).

This has been partly offset by increases in

inflation rate assumptions and a reduction

in the value of the underlying assets.

A full actuarial valuation is currently

being carried out on the defined benefit

section of the UK pension scheme as at

31 March 2022.

As at 30 April 2022 the Group had net

cash of £44m (2020/21: £169m) and held

on average £290m net cash throughout

the year (2020/21: £280m). The Group

also had access to £543m across two

revolving credit facilities; both facilities

were extended by an additional year

Balance sheet

78 Currys plc Annual Report & Accounts 2021/22

Balance sheet continued

Performance review

2021/22 continued

and now expire in April 2026. The

covenants on our debt facilities are fixed

charge cover >1.5x (2021/22: 2.23x) and

net debt leverage <2.5x (2021/22: (0.04)x).

The Group assesses its financial strength

on a total indebtedness basis, including

the pension and lease liabilities as debt.

The closing total indebtedness

(1)

position

was £1,506m, decreasing £164m since

1 May 2021 and £770m since 2 May 2020.

We target a total indebtedness fixed

charge cover >1.5x (2021/22: 1.74x) and

net indebtedness leverage <2.5x

(2021/22: 2.41x).

30 April 2022

£m

1 May 2021

£m

2 May 2020

£m

Net cash/(debt) 44 169 (204)

Restricted cash (30) (35) (32)

Net lease liabilities (1,263) (1,322) (1,439)

Pension liability (257) (4 8 2) (550)

Working capital facilities – – (51)

Total closing indebtedness (1,506) (1,670) (2, 276)

Less: year-end net cash/(debt) (44) (169) 204

Add: average net cash/(debt) 290 280 (355)

Total average indebtedness (1,260) (1,559) (2,427)

30 April 2022

£m

1 May 2021

£m

2 May 2020

£m

Operating cashflow 361 338 299

Cash payments of leasing costs, debt & interest 263 288 324

Operating cash flow plus cash payments of leasing 624 626 623

Net debt ratios

Fixed charges (cash lease costs + cash interest) 280 312 350

Fixed charge cover 2.23x 2.01x 1.78x

Net cash excluding restricted funds 14 134 (236)

Net debt leverage (0.04)x (0.40)x 0.79x

Net indebtedness ratios

Fixed charges (cash lease costs + cash interest + pension contributions) 358 359 396

Total indebtedness fixed charge cover 1.74x 1 .74 x 1.57x

Total closing indebtedness (1,506) (1,670) (2, 276)

Total indebtedness leverage 2.41x 2.67x 3.65x

The net deferred tax position decreased

£(26)m since 1 May 2021 to reflect what is

probable in the Group’s financial planning

period, partly offset by an increase in the

UK tax rate to 25%.

Provisions primarily relate to property,

reorganisation and sales provisions.

The balance reduced by £(26)m due to

utilisation of provisions, mainly related to

the Carphone Warehouse Ireland business

and store closure, and release of excess

property provisions that were no longer

required following successful early

exit negotiations. These were partially

offset by additions due to announced

reorganisation programmes within

UK & Ireland and onerous IT contracts.

(1) Total indebtedness is defined and reconciled to nearest IFRS measure within note A10.

Governance

Financial Statements

Investor Information

Strategic Report

Comprehensive income/Changes in equity

Total equity for the Group increased from £2,381m to £2,501m in the period, driven by the profit of £71m, the gain (net of taxation)

on the defined benefit pension deficit of £167m, movements in relation to share schemes of £23m and hedging gains of £11m.

This was largely offset by shareholder returns of £(78)m, purchase of own shares by EBT of £(41)m and a loss on retranslation

of overseas operations of £(33)m.

Share count

The weighted average number of shares in issue fell 1m following the cancellation of 33m treasury shares that were purchased offset

by dilution from colleague share schemes. The average number held by the Group EBT and treasury shares also increased to 35m

from 14m. This led to the weighted average number of shares used for basic earnings to reduce by 22m to 1,130m

The dilutive effect of share options and other incentive schemes increased as several schemes improved performance against

vesting conditions.

30 April 2022

million

1 May 2021

million

2 May 2020

million

Weighted average number of shares

Average shares in issue 1,165 1,166 1,162

Less average holding by Group EBT and treasury shares held by Company (35) (14) (5)

For basic earnings/(loss) per share 1,130 1,152 1,157

Dilutive effect of share options and other incentive schemes 45 42 25

For diluted earnings per share 1,175 1,194 1,182

Approval of Strategic Report

This Strategic Report was approved by

the Board and signed on its behalf by:

Alex Baldock

Group Chief Executive

6 July 2022

80 Currys plc Annual Report & Accounts 2021/22

75%

25%

62.5%

37.5%

12.5%

87.5%

66.7%

33.3%

Compliance with the UK Corporate Governance Code 2018 (the ‘Code’)

The Board confirms that throughout the year ended 30 April

2022 and as at the date of this report, the Company applied

the principles of, and was compliant with the provisions of

the Code with the exception of provisions 38 and 41 (and the

part of provision 40 that relates to workforce engagement).

The Company will be compliant with provision 38 (alignment

of executive director pension contribution rates to those of

the workforce) by end of 2022. Alex Baldock continues to

receive a 10% pension allowance and this will be reduced

to 3% in December 2022 to align to the majority of the

workforce. The Company has committed to hold a session on

executive remuneration during colleague forum meetings in

2022/23 and will therefore become compliant with provision

41 (Remuneration Committee disclosure) and the part of

provision 40 (Remuneration Policy and practices) that relates

to workforce engagement during the year. A copy of the Code

is available on the website of the Financial Reporting Council:

www.frc.org.uk.

Further information on how the Company has implemented

each of the Code provisions matters can be found as follows:

Board Leadership and Company Purpose Page 87

Division of Responsibilities Page 91

Composition, Succession and Evaluation Page 93

Audit, Risk and Internal Control Page 96

Remuneration Page 114

Governance

at a glance

Board attendance

Directors Meetings attended Directors Meetings attended

Lord Livingston of Parkhead



Eileen Burbidge MBE



Tony DeNunzio CBE



Fiona McBain

(2)



Alex Baldock



Gerry Murphy



Bruce Marsh

(1)



Andrea Gisle Joosen



(1) Bruce has attended all Board meetings since his appointment on 12 July 2021. He attended a Board meeting as an observer prior to his appointment.

(2) Fiona was absent from two meetings due to illness.

Company Secretary Meetings attended

Nigel Paterson



Female

Male

Executive

Non-executive

0 – 3 years

3 – 6 years

Over 6 years

Ethnic minority group

White ethnic group

* In accordance with categories

recommended by the UK Office

for National Statistics and the

Parker Review

Board composition

Board diversity by gender Balance of the Board Non-executive director tenure Board diversity by ethnicity

Governance

Financial Statements

Investor Information

Strategic Report

Board highlights from 2021/22

• Approved three-year plan.

• Reviewed the strategic plans for Credit, Mobile and Services.

• Considered partial listing of the Nordics business and decided not to proceed.

• Appointed a new Chair of the Board from September 2022.

• UK & Ireland Commercial Trading deep dive.

• Approved the decisions to outsource logistics in the UK and establish a new distribution centre in the Nordics.

• Received customer experience updates.

• Received update on colleague listening.

• Approved the 2023 – 2025 People Plan and priorities.

• Visited the Company’s distribution centre in Newark including a site tour and meeting several colleagues from

Supply Chain and Service Operations.

• Approved the approach to ESG strategy.

• Completed an externally facilitated Board evaluation process.

• Completed a share buyback and approved the payment of a dividend to shareholders.

Board skills and experience

Ian Dyson

Chair

Ian will join the Board as a non-executive

director on 1 September 2022 and become

Chair of the Board and Nominations

Committee on 8 September 2022.

Ian is currently Chair of Asos plc and a

non-executive director of InterContinental

Hotels Group plc but will step down from

these roles in August 2022 and February

2023 respectively.

Ian has more than 20 years of experience

in the public market arena and has

held both executive and non-executive

directorships at FTSE 100 and FTSE 250

companies including group finance and

operations director at Marks & Spencer

Group plc from 2005 to 2010.

In addition, Ian was chief executive of

Punch Taverns plc, group finance director

of Rank Group Plc and a non-executive

director of Misys Plc, Flutter Entertainment

plc and SSP Group plc.

Directors

Bruce Marsh

Alex Baldock

Gerry Murphy

Fiona McBain

Andrea Gisle

Joosen

Tony DeNunzio

Eileen Burbidge

Ian Livingston

General retailing

experience

Online retailing

experience

Strategy

(development and

implementation)

Accounting, finance

and audit

Corporate

transactions

Risk management

Governance

Regulatory

Human resources

management

IT and technology

Marketing/

advertising

Consumer financial

services

Current executive

leadership

International

During the year, the Board received training on climate drivers impacting businesses and

the understanding and management of climate-related risks.

82 Currys plc Annual Report & Accounts 2021/22

Board of

Directors

CC C

Lord Livingston

of Parkhead (57)*

Chair of the Board

Tony DeNunzio

CBE (62)

Deputy Chair and

Senior Independent

Director

Alex Baldock (51)

Group Chief Executive

Bruce Marsh (54)

Group Chief

Financial Officer

Andrea Gisle

Joosen (58)

Independent

Non-Executive Director

Eileen Burbidge

MBE (51)

Independent

Non-Executive Director

Fiona McBain (61)

Independent

Non-Executive Director

Gerry Murphy (69)

Independent

Non-Executive Director

Nigel Paterson (55)

General Counsel and

Company Secretary

Appointed

December 2015 (as Deputy

Chair and Non-Executive

Director)

April 2017 (as Chair of the

Board and Chair of the

Nominations Committee)

December 2015 (as Senior

Independent Director and

Non-Executive Director)

April 2017 (as Deputy

Chair, Senior Independent

Director and Chair of the

Remuneration Committee)

April 2018 July 2021 August 2014 (having served

on the Dixons Retail board

since March 2013)

January 2019 March 2017 (as a

Non-Executive Director)

September 2018 (as Chair

of the Audit Committee)

April 2014 April 2015

Current

external

roles

Member of the House

of Lords, non-executive

director of National Grid

plc, non-executive director

of S&P Global Inc, and

strategic advisory board

member of Livingbridge.

Chairman of the British

Retail Consortium, chairman

of Evri UK, Senior Adviser at

Kohlberg, Kravis, Roberts &

Co L.P. and a non-executive

director of PrimaPrix SL.

Non-executive director of

RS Group plc.

None. Non-executive director

of 888 Holdings plc,

Chair of Bilprovningen AB,

non-executive director

of Billerud AB, Qred AB,

Stadium AB and The nu

company GMBH.

HM Treasury Special

Envoy for Fintech, Tech

Ambassador for the

Mayor of London’s

office, co-founder of

Passion Capital in 2011,

and a director of several

Passion Capital portfolio

companies including

Monzo Bank Limited.

Chair of Scottish Mortgage

Investment Trust PLC,

non-executive director

of Direct Line Insurance

Group plc and Monzo Bank

Limited.

Non-executive board

member of the Department

of Health and Social Care.

None.

Skills and

experience

Skills: Ian is a chartered

accountant with over

20 years’ board level

experience. He is an

experienced chair, chief

financial officer and

non-executive director of

public listed companies. Ian

has a strong track record

of successfully growing

complex businesses and

overseeing transformation

programmes. He is a diligent,

conscientious Chair and is

valued for both his extensive

knowledge and experience

and his effective leadership

of the Board.

Experience: Ian was

chairman of Man Group

plc from 2016 to 2019,

Minister of State for Trade

and Investment from 2013

to 2015 and chief executive

officer at BT Group plc

from 2008 to 2013. Prior to

that he was chief executive

officer, BT Retail and group

chief financial officer of

BT. He was group finance

director of Dixons Group plc

between 1996 and 2002,

having served in a number

of roles over more than a

decade with the Group.

Skills: Tony has extensive

experience in the European

retail and consumer goods

sectors in finance, CEO

and Chair roles.

Experience: Tony was

non-executive chairman

of Pets at Home Group

Plc from February 2014 to

May 2020 and president

and chief executive

officer of Asda/Walmart

UK from 2002 to 2005,

having previously served

as chief financial officer

of Asda PLC. He started his

career in the fast-moving

consumer goods sector

with financial positions in

Unilever PLC, L’Oréal and

PepsiCo, Inc. He was also

previously non-executive

director of Alliance

Boots GmbH, chairman

of Maxeda Retail Group

BV, and deputy chairman

and senior independent

director of MFI Furniture

Group plc (now Howden

Joinery Group Plc). He was

chairman of the advisory

board of Manchester

Business School and was

awarded a CBE for services

to retail in 2005.

Skills: Alex has an

outstanding track record

in leading large, complex

consumer-facing businesses.

He led Shop Direct through

its digital transformation

from a catalogue retailer

to the UK’s second largest

e-commerce pure-play,

delivering four consecutive

years of record growth in

sales, profits, customer

satisfaction and colleague

engagement. Before that,

he led the successful

transformation of Lombard.

Alex is particularly valued

for his strategic clarity,

relentless execution and his

ability to inspire individuals

around him.

Experience: Alex has been

Group Chief Executive of

Currys since 2018 and was

CEO of Shop Direct, now

the Very Group from 2012

to 2018. Before that, Alex

was managing director

of Lombard from 2008

to 2012, and commercial

director at Barclays. He

started his career in strategy

and operations consulting

with Kalchas and Bain &

Company.

Skills: Bruce has a strong

track record over many

years in retail, and in the

successful delivery of

large complex business

transformations in rapidly

changing environments. He

has extensive experience

in leading high-quality

finance teams, maintaining

robust financial controls

and improving planning

and performance.

Experience: Bruce was

finance director, UK &

Ireland, at Tesco plc prior

to joining Currys. Before that

Bruce was at Kingfisher plc,

where he was managing

director of Kingfisher Future

Homes and Group Strategy

Director. Previously, Bruce

held several senior finance

roles at Dixons Retail plc.

Skills: Andrea has an

MSc in Business and

International Marketing

from The Copenhagen

Business School (CBS). She

has extensive international

business experience

in a variety of sectors

including marketing, brand

management, business

development and

consumer electronics.

Experience: Andrea

was chair of the Swedish

podcast platform Acast

2018-2022 and of

Teknikmagasinet 2015-2017,

a non-executive director

of Ica Gruppen AB and

James Hardie Industries plc.

She was Chief Executive

of Boxer TV Access AB in

Sweden and managing

director (Nordic region) of

Panasonic, Chantelle AB

and Twentieth Century Fox.

Her early career involved

several senior marketing

roles with Procter & Gamble

and Johnson & Johnson.

Skills: Eileen has a strong

technology background

and is a leader in the

development of the UK’s

increasingly renowned

fintech industry. Eileen

brings a constructive,

challenging, and balanced

perspective to the Board

including a focus on

technology innovation,

value creation and an

informed perspective on

the digital consumer.

Experience: Eileen has

a university degree in

computer science and

since beginning her career

in telecoms at Verizon

Wireless, she has held

various roles at Apple, Sun

Microsystems, Openwave,

PalmSource, Skype

and Yahoo!. Eileen was

previously a member of

the Prime Minister’s Business

Advisory Group and

chair of Tech Nation, a UK

Government-supported

technology industry group.

Skills: Fiona is a chartered

accountant and has over

30 years’ experience in

retail financial services,

both in the industry and

as an auditor. She has

an outstanding record

of business leadership

and is an experienced

CEO and chair.

Experience: Fiona was

vice-chair of Save the

Children from 2012 to

2019 and trustee director

of the Humanitarian

Leadership Academy from

2015 to 2019. Fiona was

chief executive officer of

Scottish Friendly Group until

December 2016, having

joined the company in

1998. She has worked in

the finance functions at

Prudential plc and Scottish

Amicable and earlier in her

career, across a number

of industry sectors in the

UK and then in the US with

Arthur Young (now EY).

Skills: Gerry has extensive

audit and finance

experience in consumer

business, retail, technology,

media and communications

sectors.

Experience: Gerry was

a non-executive director

of Capital & Counties

Properties PLC from 2015

to 2018 and the senior

independent director

from 2018 to 2020.

Gerry is a former Deloitte

LLP partner and was

leader of its Professional

Practices Group with

direct industry experience

in consumer business,

retail, technology, media

and telecommunications.

He was a member of

the Deloitte Board and

chairman of its audit

committee for a number of

years and was chairman

of the Audit & Assurance

Faculty of the Institute of

Chartered Accountants

in England and Wales.

Skills: Nigel is a solicitor

and has extensive legal,

risk and governance

experience and a

strong background in

UK and international

telecommunications.

Experience: Nigel held

several senior legal

roles at BT Group plc

including general counsel

of BT Consumer, head of

competition & regulatory

law, and vice president and

chief counsel for UK and

major transactions. Prior

to BT, Nigel was engaged

as legal counsel at

ExxonMobil International

Limited. He trained and

qualified as a solicitor

with Linklaters.

* Ian will step down from the Board on 8 September 2022.

Governance

Financial Statements

Investor Information

Strategic Report

Committee membership

Audit Committee Disclosure Committee Nominations Committee Remuneration Committee

Committee Chair

Lord Livingston

of Parkhead (57)*

Chair of the Board

Tony DeNunzio

CBE (62)

Deputy Chair and

Senior Independent

Director

Alex Baldock (51)

Group Chief Executive

Bruce Marsh (54)

Group Chief

Financial Officer

Andrea Gisle

Joosen (58)

Independent

Non-Executive Director

Eileen Burbidge

MBE (51)

Independent

Non-Executive Director

Fiona McBain (61)

Independent

Non-Executive Director

Gerry Murphy (69)

Independent

Non-Executive Director

Nigel Paterson (55)

General Counsel and

Company Secretary

Appointed

December 2015 (as Deputy

Chair and Non-Executive

Director)

April 2017 (as Chair of the

Board and Chair of the

Nominations Committee)

December 2015 (as Senior

Independent Director and

Non-Executive Director)

April 2017 (as Deputy

Chair, Senior Independent

Director and Chair of the

Remuneration Committee)

April 2018 July 2021 August 2014 (having served

on the Dixons Retail board

since March 2013)

January 2019 March 2017 (as a

Non-Executive Director)

September 2018 (as Chair

of the Audit Committee)

April 2014 April 2015

Current

external

roles

Member of the House

of Lords, non-executive

director of National Grid

plc, non-executive director

of S&P Global Inc, and

strategic advisory board

member of Livingbridge.

Chairman of the British

Retail Consortium, chairman

of Evri UK, Senior Adviser at

Kohlberg, Kravis, Roberts &

Co L.P. and a non-executive

director of PrimaPrix SL.

Non-executive director of

RS Group plc.

None. Non-executive director

of 888 Holdings plc,

Chair of Bilprovningen AB,

non-executive director

of Billerud AB, Qred AB,

Stadium AB and The nu

company GMBH.

HM Treasury Special

Envoy for Fintech, Tech

Ambassador for the

Mayor of London’s

office, co-founder of

Passion Capital in 2011,

and a director of several

Passion Capital portfolio

companies including

Monzo Bank Limited.

Chair of Scottish Mortgage

Investment Trust PLC,

non-executive director

of Direct Line Insurance

Group plc and Monzo Bank

Limited.

Non-executive board

member of the Department

of Health and Social Care.

None.

Skills and

experience

Skills: Ian is a chartered

accountant with over

20 years’ board level

experience. He is an

experienced chair, chief

financial officer and

non-executive director of

public listed companies. Ian

has a strong track record

of successfully growing

complex businesses and

overseeing transformation

programmes. He is a diligent,

conscientious Chair and is

valued for both his extensive

knowledge and experience

and his effective leadership

of the Board.

Experience: Ian was

chairman of Man Group

plc from 2016 to 2019,

Minister of State for Trade

and Investment from 2013

to 2015 and chief executive

officer at BT Group plc

from 2008 to 2013. Prior to

that he was chief executive

officer, BT Retail and group

chief financial officer of

BT. He was group finance

director of Dixons Group plc

between 1996 and 2002,

having served in a number

of roles over more than a

decade with the Group.

Skills: Tony has extensive

experience in the European

retail and consumer goods

sectors in finance, CEO

and Chair roles.

Experience: Tony was

non-executive chairman

of Pets at Home Group

Plc from February 2014 to

May 2020 and president

and chief executive

officer of Asda/Walmart

UK from 2002 to 2005,

having previously served

as chief financial officer

of Asda PLC. He started his

career in the fast-moving

consumer goods sector

with financial positions in

Unilever PLC, L’Oréal and

PepsiCo, Inc. He was also

previously non-executive

director of Alliance

Boots GmbH, chairman

of Maxeda Retail Group

BV, and deputy chairman

and senior independent

director of MFI Furniture

Group plc (now Howden

Joinery Group Plc). He was

chairman of the advisory

board of Manchester

Business School and was

awarded a CBE for services

to retail in 2005.

Skills: Alex has an

outstanding track record

in leading large, complex

consumer-facing businesses.

He led Shop Direct through

its digital transformation

from a catalogue retailer

to the UK’s second largest

e-commerce pure-play,

delivering four consecutive

years of record growth in

sales, profits, customer

satisfaction and colleague

engagement. Before that,

he led the successful

transformation of Lombard.

Alex is particularly valued

for his strategic clarity,

relentless execution and his

ability to inspire individuals

around him.

Experience: Alex has been

Group Chief Executive of

Currys since 2018 and was

CEO of Shop Direct, now

the Very Group from 2012

to 2018. Before that, Alex

was managing director

of Lombard from 2008

to 2012, and commercial

director at Barclays. He

started his career in strategy

and operations consulting

with Kalchas and Bain &

Company.

Skills: Bruce has a strong

track record over many

years in retail, and in the

successful delivery of

large complex business

transformations in rapidly

changing environments. He

has extensive experience

in leading high-quality

finance teams, maintaining

robust financial controls

and improving planning

and performance.

Experience: Bruce was

finance director, UK &

Ireland, at Tesco plc prior

to joining Currys. Before that

Bruce was at Kingfisher plc,

where he was managing

director of Kingfisher Future

Homes and Group Strategy

Director. Previously, Bruce

held several senior finance

roles at Dixons Retail plc.

Skills: Andrea has an

MSc in Business and

International Marketing

from The Copenhagen

Business School (CBS). She

has extensive international

business experience

in a variety of sectors

including marketing, brand

management, business

development and

consumer electronics.

Experience: Andrea

was chair of the Swedish

podcast platform Acast

2018-2022 and of

Teknikmagasinet 2015-2017,

a non-executive director

of Ica Gruppen AB and

James Hardie Industries plc.

She was Chief Executive

of Boxer TV Access AB in

Sweden and managing

director (Nordic region) of

Panasonic, Chantelle AB

and Twentieth Century Fox.

Her early career involved

several senior marketing

roles with Procter & Gamble

and Johnson & Johnson.

Skills: Eileen has a strong

technology background

and is a leader in the

development of the UK’s

increasingly renowned

fintech industry. Eileen

brings a constructive,

challenging, and balanced

perspective to the Board

including a focus on

technology innovation,

value creation and an

informed perspective on

the digital consumer.

Experience: Eileen has

a university degree in

computer science and

since beginning her career

in telecoms at Verizon

Wireless, she has held

various roles at Apple, Sun

Microsystems, Openwave,

PalmSource, Skype

and Yahoo!. Eileen was

previously a member of

the Prime Minister’s Business

Advisory Group and

chair of Tech Nation, a UK

Government-supported

technology industry group.

Skills: Fiona is a chartered

accountant and has over

30 years’ experience in

retail financial services,

both in the industry and

as an auditor. She has

an outstanding record

of business leadership

and is an experienced

CEO and chair.

Experience: Fiona was

vice-chair of Save the

Children from 2012 to

2019 and trustee director

of the Humanitarian

Leadership Academy from

2015 to 2019. Fiona was

chief executive officer of

Scottish Friendly Group until

December 2016, having

joined the company in

1998. She has worked in

the finance functions at

Prudential plc and Scottish

Amicable and earlier in her

career, across a number

of industry sectors in the

UK and then in the US with

Arthur Young (now EY).

Skills: Gerry has extensive

audit and finance

experience in consumer

business, retail, technology,

media and communications

sectors.

Experience: Gerry was

a non-executive director

of Capital & Counties

Properties PLC from 2015

to 2018 and the senior

independent director

from 2018 to 2020.

Gerry is a former Deloitte

LLP partner and was

leader of its Professional

Practices Group with

direct industry experience

in consumer business,

retail, technology, media

and telecommunications.

He was a member of

the Deloitte Board and

chairman of its audit

committee for a number of

years and was chairman

of the Audit & Assurance

Faculty of the Institute of

Chartered Accountants

in England and Wales.

Skills: Nigel is a solicitor

and has extensive legal,

risk and governance

experience and a

strong background in

UK and international

telecommunications.

Experience: Nigel held

several senior legal

roles at BT Group plc

including general counsel

of BT Consumer, head of

competition & regulatory

law, and vice president and

chief counsel for UK and

major transactions. Prior

to BT, Nigel was engaged

as legal counsel at

ExxonMobil International

Limited. He trained and

qualified as a solicitor

with Linklaters.

84 Currys plc Annual Report & Accounts 2021/22

Directors’ Report

Directors

The names, biographies, committee memberships and dates

of appointment of each member of the Board are provided on

pages 82 and 83. During the year, Jonny Mason stepped down

as a director on 9 July 2021 and Bruce Marsh was appointed as

an executive director and the Group Chief Financial Officer with

effect from 12 July 2021. On 8 September 2022, Ian Livingston

will step down from the Board and Ian Dyson will be appointed

as Chair of the Board and Nominations Committee.

The Board is permitted by its Articles of Association

(the ‘Articles’), to appoint new directors to fill a vacancy as long

as the total number of directors does not exceed the maximum

limit of 15. The Articles may be amended by special resolution

of the shareholders and require that any director appointed

by the Board stand for election at the following annual general

meeting. In accordance with the UK Corporate Governance

Code 2018, all directors submit themselves for election or

re-election on an annual basis.

The Remuneration Report provides details of applicable service

agreements for executive directors and terms of appointment

for non-executive directors. All the directors proposed by the

Board for re-election are being unanimously recommended

for their skills, experience and the contribution they can bring

to Board deliberations.

During the year, no director had any material interest in any

contract of significance to the Group’s business. Their interests

in the shares of the Company, including those of any connected

persons, are outlined in the Remuneration Report on pages 114

to 147.

The Board exercise all the powers of the Company subject

to the Articles, the Act and shareholder resolutions. A formal

schedule of matters reserved for the Board is in place and is

available on the Company’s website at www.currysplc.com.

Directors’ responsibilities

The directors’ responsibilities for the financial statements

contained within this Annual Report and Accounts and the

directors’ confirmations as required under DTR 4.1.12 are set

out on page 148.

Directors’ indemnities and insurance

The Company has made qualifying third-party indemnity

provisions (as defined in the Act) for the benefit of its directors

during the year; these provisions remain in force at the date of

this Directors’ Report.

In accordance with the Articles, and to the extent permitted

by law, the Company may indemnify its directors out of its

own funds to cover liabilities incurred as a result of their office.

The Group holds directors’ and officers’ liability insurance

cover for any claim brought against its directors or officers

for alleged wrongful acts in connection with their positions, to

the point where any culpability for wrongdoing is established.

The insurance provided does not extend to claims arising from

fraud or dishonesty.

Information required by Listing Rule 9.8.4R

Details of long-term incentive schemes as required by Listing

Rule 9.4.3R are located in the Directors’ Remuneration Report

on pages 114 to 147. There is no further information required to

be disclosed under Listing Rule 9.8.4R.

Dividend

The Board has proposed a final dividend for the year ended

30 April 2022. Details of the final and interim dividends for the

year are included in the below table.

As at 6 July 2022, the Company’s Employee Benefit Trust (‘EBT’)

held 33,177,793 shares. The right to receive the final dividend for

2021/22 will be waived by the trustees of the EBT in respect of

the balance of shares held as at the dividend record date on

5 August 2022.

Year ended

30 April 2022

Year ended

1 May 2021

Interim dividend 1.00p Nil

Final dividend 2.15p Nil

Full year dividend Nil 3.00p

Total dividends 3.15p 3.00p

The Directors’ Report required by the Companies Act 2006 (the ‘Act’), the corporate

governance statement as required by the FCA’s Disclosure Guidance and Transparency

Rules (‘DTRs’) DTR 7.2 and the management report required by DTR 4.1 comprises the

Strategic Report on pages 1 to 67, the Corporate Governance Report on pages 87 to 99,

together with this Directors’ Report on pages 84 to 86. All information is incorporated by

reference into this Directors’ Report.

Governance

Financial Statements

Investor Information

Strategic Report

Colleague involvement

The Group has a robust communications programme in place

to provide colleagues with information on matters of concern to

them. This includes regular publications on the Group’s intranet,

email updates from the Group Chief Executive and regular

meetings with line managers. The members of the Executive

Committee regularly communicate matters of current interest

and concern to colleagues. There are colleague forums in place

in the UK & Ireland and an International Colleague Forum has

been established representing all other countries in the Group as

the centre of a colleague listening framework. This ensures that

colleague feedback is received effectively and consistently

across all countries that the Group operates in. This forum

supports various initiatives and more details are available on

page 127. Details of the colleagues’ involvement in the Group’s

share plans are disclosed in the Remuneration Report on pages

114 to 147.

Employment of disabled people

The business is committed to providing equal opportunities in

recruitment, training, development and promotion. We encourage

applications from individuals with disabilities. All efforts are

made to retain disabled colleagues in our employment, including

making any reasonable re-adjustments to their roles. Every

endeavour is made to find suitable alternative employment

and to retrain and support the career development of any

employee who becomes disabled while serving the Group.

Information on greenhouse gas emissions

The information on greenhouse gas emissions that the Company

is required to disclose is set out in the Sustainable business

report on page 51. This information is incorporated into this

Directors’ Report by reference and is deemed to form part

of this Directors’ Report.

Political donations

No political donations were made by the Group during the

period. It remains the policy of the Company not to make

political donations nor incur political expenditure as those

expressions are normally understood. As the definitions of

political donations and political expenditure in the Act are

very wide and could extend to bodies such as those involved

with policy review, law reform and the representation of the

business community, the directors seek shareholder authority

for political donations and political expenditure each year

on a precautionary basis to avoid inadvertent infringement

of the Act.

Capital structure

The Company’s only class of share is ordinary shares. Details of the

movements in issued share capital during the year are provided in

note 22 to the Group financial statements. The voting rights of the

Company’s shares are identical, with each share carrying the right

to one vote. The Company holds no shares in treasury.

Details of employee share schemes are provided in note 4 to

the Group financial statements. As at 30 April 2022, the EBT held

33,215,940 shares. The EBT acquired 34,667,982 shares by market

purchase during the financial year.

Restrictions on transfer of securities

of the Company

There are no specific restrictions on the size of a holding nor on

the transfer of shares, which are both governed by the general

provisions of the Articles and prevailing legislation. The directors

are not aware of any agreements between holders of the

Company’s shares that may result in restrictions on the transfer

of securities or on voting rights. No person has any special rights

of control over the Company’s share capital and all issued

shares are fully paid.

Change of control – significant agreements

All of the Company’s share incentive scheme rules contain

provisions which may cause options and awards granted under

these schemes to vest and become exercisable in the event of

a change of control.

The Group’s main committed borrowing facility has a change

of control clause whereby the participating banks can require

the Company to repay all outstanding amounts under the

facility agreement in the event of a change of control. There

are a number of significant agreements which would allow

the counterparties to terminate or alter those arrangements

in the event of a change of control of the Company. These

arrangements are commercially confidential, and their

disclosure could be seriously prejudicial to the Company.

Furthermore, the directors are not aware of any agreements

between the Company and its directors or employees that

provide for compensation for loss of office or employment

in the event of a takeover bid.

86 Currys plc Annual Report & Accounts 2021/22

Directors’ Report continued

Significant shareholdings

As at 30 April 2022, the Company had been notified of the

following voting interests in the ordinary share capital of the

Company in accordance with the FCA’s DTR 5. Percentages are

shown as notified, calculated with reference to the Company’s

disclosed share capital as at the date of the notification.

Name

Number of

Percentage of

share capital

RWC Asset Management LLP 136,282,392 11.95%

Artemis Investment Management LLP 88,211,458 7.56%

Cobas Asset Management 69,140,994 6.00%

Wishbone Management LLP 41,500,000 5.25%

Greater Manchester Pension Fund 59,107,872 5.11%

D P J Ross 55,738,699 4.80%

Ruffer 52,373,898 4.62%

Majedie Asset Management 44,288,264 3.80%

Equiniti Trust (Jersey), trustee of the EBT 33,788,905 2.90%

On 10 May 2022, RWC Asset Management LLP disclosed a

holding of 171,500,831 shares or 15.13% and Schroders plc

disclosed a holding of 59,677,996 shares or 5.26%. On 24 May

2022 Cobas Asset Management disclosed a holding of

80,987,739 shares or 7.15% and then on 23 June 2022, a holding

of 90,735,430 shares or 8.00%.

On 6 July 2022, being the last practicable date prior to the

publication of this Annual Report and Accounts, no further

changes to the shareholdings reported above had been notified

to the Company in accordance with DTR 5.

Directors’ interests in the Company’s shares and the movements

thereof are detailed in the Remuneration Report on pages 114

to 147.

Issue of shares

In accordance with section 551 of the Act, the Articles and within

the limits prescribed by The Investment Association, shareholders

can authorise the directors to allot shares in the Company

up to one-third of the issued share capital of the Company.

Accordingly, at the annual general meeting in 2021, shareholders

approved a resolution to give the directors authority to allot

shares up to an aggregate nominal value of £388,819. The

directors have no present intention to issue ordinary shares, other

than pursuant to obligations under employee share schemes.

This resolution remains valid until 30 October 2022 or, if earlier,

until the conclusion of the Company’s Annual General Meeting

(‘AGM’) in 2022. The Company will seek the usual renewal of

this authority at the 2022 AGM.

Purchase of own shares

Authority was given by the shareholders at the annual general

meeting in 2021 to purchase a maximum of 116,645,844 shares,

such authority remaining valid until 30 October 2022 or, if

earlier, until the conclusion of the Company’s AGM in 2022. The

authority was exercised during the year. Following a review of the

capital allocation framework and consideration of the interest

of the Company’s main stakeholder groups, the Board decided

to commence a share buyback programme. On 4 November

2021, the Company announced that £75m of shares would be

repurchased over the following 12 months. 32,963,792 shares

were repurchased between 14 January 2022 and 30 April 2022.

The Company will seek the usual renewal of this authority to

purchase its own shares at the 2022 AGM.

Use of financial instruments

Information about the use of financial instruments is given in

note 25 to the Group financial statements.

Post – balance sheet date events

Events after the balance sheet date are disclosed in note 32

to the Group financial statements.

Auditor

Each director at the date of approval of this Annual Report

and Accounts confirms that:

• so far as the director is aware, there is no relevant audit

information of which the Company’s Auditor is unaware; and

• the director has taken all the steps that they ought to have

taken as a director in order to make themself aware of

any relevant audit information and to establish that the

Company’s Auditor is aware of that information.

This confirmation is given and should be interpreted in

accordance with the provisions of section 418 of the Act.

Following a tender process carried out during 2020/21,

KPMG LLP will be appointed as external Auditor for the

2022/23 financial year subject to shareholder approval

at the Company’s AGM in September 2022.

Certain information required to be included in this Directors’

Report may be found within the Strategic Report.

By Order of the Board

Nigel Paterson

Company Secretary

6 July 2022

Governance

Financial Statements

Investor Information

Strategic Report

Corporate Governance Report

Board Leadership

and Company Purpose

Role of the Board

The Board is responsible for the overall leadership and promotion

of the long-term sustainable success of the Company, generating

value for shareholders and contributing to wider society. The Board

sets the Company strategy and oversees its implementation within

a framework of efficient and effective controls that allow the key

issues and risks facing the business to be assessed and managed.

The Board considers the impact on, and the responsibility it has to

the Company’s stakeholders as part of its decision-making. The

Board delegates clearly defined responsibilities to its committees

and the terms of reference for these committees are available

on the Company’s website at www.currysplc.com/investors.

The Company’s vision, purpose, values and strategy are

described in more detail in the Strategic Report on pages 1 to

67. The Board oversees the delivery of the strategy within the

context of the values and culture.

Culture

The directors are focused on monitoring the culture in the

business and receive regular updates on the results of colleague

‘pulse surveys’. All non-executive directors have access to the

Company’s intranet and corporate email addresses and

receive all communications sent to colleagues. In addition,

the non-executive directors frequently have direct contact

with Executive Committee members and their direct reports.

Non-executive directors are invited to Company events such

as the Capital Markets Day held in November 2021 and the

annual Peak event.

This event was held virtually in October 2021 due to Covid-19.

The Board also visit key sites and stores. The March 2022

Board meeting was held at the Company’s main UK & Ireland

distribution and service centre in Newark and included a site tour

and opportunities for directors to interact directly with Supply

Chain and Service Operations colleagues. One non-executive

director attends Inclusion and Diversity Forum meetings and

two non-executive directors attend colleague listening forums.

Each of these forums provide an opportunity for non-executive

directors to hear feedback directly from colleagues and

share insights on corporate culture with the whole Board.

A non-executive director also attends ESG Committee meetings.

Corporate governance framework

The Currys plc Board is supported by four committees:

• Audit Committee – oversees the financial reporting, internal

controls and the relationship with the external Auditor;

• Disclosure Committee – oversees the procedures and controls

for the identification and disclosure of price sensitive information;

• Nominations Committee – oversees the composition of the

Board and its committees and that a diverse pipeline is in

place for succession planning; and

• Remuneration Committee – oversees the remuneration

of the executive directors and senior management and the

structure of remuneration for the workforce.

These committees are each comprised of directors of the

Currys plc Board with the exception of the General Counsel and

Company Secretary who is a member of the Disclosure Committee.

This Corporate Governance Report describes the governance

framework in place to ensure that the Board is operating effectively

and supporting and challenging management to maintain high

standards of corporate governance across the Group. I believe

that robust corporate governance is the foundation to ensuring

the long-term sustainable success of a business and helps us

deliver the right outcomes for our shareholders, our customers,

our colleagues, our suppliers and our communities.

The Board is compliant with all provisions of the UK Corporate

Governance Code 2018 (the ‘Code’) other than provisions 38

and 41 (and the part of provision 40 that relates to workforce

engagement). The Company will be compliant with provision 38

(alignment of executive director pension contribution rates to

those of the workforce) by end of 2022. Alex Baldock continues

to receive a 10% pension allowance and this will be reduced to

3% in December 2022 to align to the majority of the workforce.

The Company has committed to hold a session on executive

remuneration during colleague forum meetings in 2022/23 and

will therefore become compliant with provision 41 (Remuneration

Committee disclosure) and the part of provision 40 (Remuneration

Policy and practices) that relates to workforce engagement during

the year. We have structured this report by the Code provisions

to help show how we have applied these in each case.

Chair of the Board statement

I am pleased to present the

Corporate Governance Report

for the year to 30 April 2022.

The Board is responsible for the

overall leadership of the Group

to ensure the long-term, sustainable

success of the business.”

Lord Livingston of Parkhead

Chair of the Board

88 Currys plc Annual Report & Accounts 2021/22

Corporate Governance Report continued

The day-to-day management of the business is delegated to

the Group Chief Executive who is responsible for leading the

implementation of the strategy that has been approved by the

Board. The Group Chief Executive is supported by an Executive

Committee which consists of eight senior leaders in the business

and also by a wider Group Leadership Team of approximately

80 colleagues who support the Executive Committee in driving

the management agenda.

The Group Risk and Compliance Committee comprises the members

of the Executive Committee and oversees the management of

principal and emerging risks (see page 96 for further information),

audit, risk and internal controls. The Environmental, Social and

Governance (‘ESG’) Committee reports into the Executive

Committee. The ESG Committee drives the sustainability, well-being

and social and ethical impact initiatives in the Group including

consideration of the impacts of climate change.

Currys plc is the ultimate beneficial owner of the main operating

subsidiaries in the Group. In the UK & Ireland, the Regulatory

Compliance Committee overseas the management of risks in

relation to regulated products and the Product Governance

Committee oversees the development of, and any subsequent

material changes to, such products. Similar governance

frameworks for regulated products are replicated in the

international businesses.

Board reserved matters

The formal schedule of matters reserved for the decision of

the Board is considered by the directors on an annual basis. This

was last approved on 18 January 2022 and the directors agreed

that the balance of matters reserved and matters delegated

remain appropriate. The matters reserved for Board decision

are available on the Company’s website at www.currysplc.com

and these include:

• approval of published financial statements, dividend policy

and other disclosures requiring Board approval;

• declaration of interim and recommendation of final dividends;

• approval of budget and Group strategy and objectives;

• appointment and remuneration of directors, the Company

Secretary and other senior executives;

• approval of major acquisitions and disposals;

• approval of authority levels for expenditure;

• approval of certain Group policies; and

• approval of shareholder communications.

Key areas of focus for the Board during the year

• Strategy for Mobile and Credit.

• Succession and leadership.

• Financial and operational performance.

• Assessing and managing the impact of Covid-19 on our

colleagues and the business model.

• Major capital and IT projects.

• Colleague engagement and well-being.

• Evaluation of a partial listing of the Nordics business.

• Oversight of transformation of the UK & Ireland Contact Centre

and outsource of the UK logistics contract.

• Consideration of refined ESG strategy and enhanced reporting.

• Updating shareholders on the Company’s strategy at 2021

Capital Markets Day.

The Board and committees Structure

Currys plc Board Audit Committee

Disclosure Committee

Nominations Committee

Remuneration Committee

Executive Committee

Main operating subsidiaries

ESG Committee

Group Risk & Compliance Committee

Regulatory Compliance Committee

Product Governance Committee

Governance

Financial Statements

Investor Information

Strategic Report

Board activities

during 2021/22

Strategy

• Oversight of Group performance

against strategy and delivery of

transformation projects

• Considered partial listing of the Nordic

business and agreed not to proceed

• Omnichannel Connected Customer

update

• Future options for Mobile

• Outsource of the UK logistics

• Consumer Credit

• Customer promises update

• Customer Contact and Support

strategy update

• ESG strategy

Financial and operational

performance

• The Company’s preliminary and interim

results, trading statements and the

annual report and accounts

• Going concern and viability statements

• Fair, balanced and understandable

assessment

• Dividend, treasury and tax strategies

• Budget approval

• Three-year plan approval

• New banking facility arrangements

approval

• Capital expenditure approvals

• International business updates

• Capital allocation strategy

Committee updates

• Detailed updates from each Committee Chair – Audit, Disclosure, Nominations

and Remuneration – following committee meetings

Stakeholders

Customers

• Customer experience updates

and insights

• Customer feedback and metrics

• Covid-19 measures in place

Shareholders

• Annual General Meeting documents

• Investor Relations updates and feedback

• Feedback from shareholder consultation

on Directors’ Remuneration Policy

• Dividend approval

• 2022 share buyback programme

approval

• 2021 Capital Markets Day

Colleagues

• Health and safety review

• Colleague share schemes

• Modern slavery update and statement

• 2023 – 2025 People Plan and priorities

• Talent, succession planning and

leadership

• Inclusion and diversity update

• Colleague engagement and colleague

listening updates

• Gender pay gap reporting

Communities and environment

• ESG strategy updates • Partnership with Digital Poverty Alliance

Governance and risk

• Risk framework and internal control review

• Principal risks and uncertainties review

• Risk horizon scanning

• Regulatory compliance updates

• Litigation and disputes updates

• Insurance review

• Conflicts of interest and new

appointments

• Group Delegation of Authority Policy

• Board Matters Reserved and committee

terms of reference review

• Role descriptions of the Chair of the

Board, the Group Chief Executive and

the Senior Independent Director review

• Externally facilitated Board

effectiveness process completed

90 Currys plc Annual Report & Accounts 2021/22

Communication with investors

The Board supports the initiatives set out in the Code and the

UK Stewardship Code and encourages regular engagement with

both existing and potential institutional shareholders and other

stakeholders. The Board believes that it is important to explain

business developments and financial results to the Company’s

shareholders and to understand shareholder concerns. The

principal communication methods used to impart information to

shareholders are news releases (including results announcements),

investor presentations and Company publications. In addition,

the Chair of the Board invites each of the Company’s largest

shareholders to attend an engagement meeting on at least an

annual basis. All shareholders are invited to submit any questions

they have for the Board to cosec@currys.co.uk or ir@currys.co.uk

at any time of the year.

A Capital Markets Day was held in November 2021 to update

investors on the strategic progress the Group has made in

creating long-term sustainable value for stakeholders. The

session included updates on the Nordics business, the new

Omnichannel strategy, sustainability and the financial profile

and capital structure. The event was attended by most of the

Group’s largest shareholders and the presentations and Q&A

from the event are available on www.currysplc.com

The Board receives a report from the Investor Relations team at

every scheduled meeting and this includes a summary of investor

interactions during the period and a synopsis of questions and

feedback from shareholders.

The Group Chief Executive has principal responsibility for

investor relations. He is supported by an Investor Relations

department that, amongst other matters, ensures there is a

full programme of regular dialogue with major institutional

shareholders and potential shareholders as well as with sell-

side analysts throughout the year. In all such dialogue, care is

taken to ensure that no price-sensitive information is released.

The Chair of the Board and non-executive directors are

available to meet with major shareholders as required, and

the Chair of the Remuneration Committee communicates with

major shareholders on remuneration matters.

The Company is committed to fostering effective communication

with all members, be they institutional investors, private or

employee shareholders. The Company communicates formally

to its members when its full year and half year results are

published. These results are posted on the corporate website,

as are other external announcements and press releases.

The annual general meeting provides an opportunity for the

Company to engage with shareholders and for the Board to

provide an account of the progress made by the business during

the year, along with a synopsis of current issues facing the business.

Our stakeholders

The directors are fully aware of their responsibilities to promote

the success of the Company in accordance with section 172(1)

of the Companies Act 2006 (the ‘Act’). The Board considers the

impact on, and the responsibility it has to, all the Company’s

stakeholders as part of its decision-making. By considering the

Company’s strategic priorities and having processes in place for

decision-making, they do, however, aim to make sure that their

decisions are consistent. The Group communicates with external

stakeholders, including industry bodies and regulators on the

management of risks and issues.

Workforce

The Board remains committed to ensuring that it gives due regard

to the interests of all of its stakeholders, including colleagues. In

its discussions, the Board has sought to understand and consider

the views of our colleagues. Further details are available in the

Colleagues section on pages 18 to 25. Further information on

workforce policies and practices and how the Company invests

in and rewards colleagues is also available in this section.

Authorisation of conflicts of interest

Each director has a duty under the Act to avoid a situation

where they have or may have a conflict of interest. They are also

required to disclose to the Board any interest in a transaction or

arrangement that is under consideration by the Company. The

General Counsel and Company Secretary supports the directors

in identifying potential conflicts of interest and reporting them to

the Board. The Board is permitted by the Company’s Articles of

Association to authorise conflicts when appropriate. Potential

conflicts are approved by the Board, or by two independent

directors if authorisation is needed urgently, and then reported

to the Board at its next meeting. A register of directors’ conflicts

is maintained and reviewed at least annually. Directors are

asked to confirm periodically that the information on the register

is correct. The Board is satisfied that the Company’s procedures

to identify, authorise and manage conflicts of interest have

operated effectively during the year.

Stakeholder engagement

Information on how we engage with

stakeholders including our colleagues.

Read more on page 34.

FURTHER

INFORMATION

Corporate Governance Report continued

Governance

Financial Statements

Investor Information

Strategic Report

Division of

Responsibilities

Board structure

The Board is comprised of two executive directors, five

independent non-executive directors and the Chair of the

Board to limit the ability for any individual or small group to

dominate Board decision-making. There is a clear division of

responsibilities between the executive leadership of the business

and the leadership of the Board.

Director responsibilities

In accordance with the Code, there is a clear division of

responsibility between the Chair of the Board and the Group

Chief Executive. Role descriptions are in place for the Chair

of the Board, Group Chief Executive and Senior Independent

Director and the Nominations Committee reviews and considers

these on an annual basis and recommends any changes to the

Board. The role descriptions were last approved by the Board on

18 January 2022 and are available on the Company’s website

at www.currysplc.com. The main responsibilities of the different

components of the Board are set out below.

Chair of the Board’s responsibilities

• overall Board effectiveness and leadership;

• Board culture, including the encouragement of openness

and debate and constructive relations between the executive

and non-executive directors;

• the appropriate balance of skills, experience and knowledge

on the Board;

• oversight of the induction, development, performance

evaluation, and succession planning of the Board;

• promotion of diversity and equality of opportunity across

the Group;

• representation of all stakeholders’ interests; and

• promotion (with the support of the Company Secretary)

of the highest standards of corporate governance.

Group Chief Executive’s responsibilities

• formulation and proposal of the Group strategy and delivery

of the strategy approved by the Board;

• delivery of Group financial performance;

• leadership of the Group and senior management including

effective performance and succession planning;

• representation of the Company to key stakeholders;

• communication of Company culture and ensuring operational

practices drive appropriate behaviours;

• communication to the Board of views of the workforce;

• promotion of diversity and equality of opportunity across

the Group;

• identification of business development opportunities;

• management of Group risk profile and ensuring internal

controls and risk mitigation measures are in place;

• ensuring compliant management of the Group’s business; and

• oversight of the operational and support functions.

Senior Independent Director’s responsibilities

• available to communicate with shareholders;

• annual appraisal of the performance of the Chair of the

Board;

• oversight of an orderly succession for the position of Chair

of the Board;

• support the Chair of the Board in the performance of their

duties; and

• work with the Chair of the Board, other directors and

shareholders to resolve significant issues and to maintain

Board and Company stability in periods of stress.

Independent non-executive directors’ responsibilities

• provision of an independent perspective;

• ensuring constructive challenge of management;

• considering the effectiveness of the implementation of the

strategy within the risk appetite; and

• contribution of diversity of experience and backgrounds

to Board deliberations.

General Counsel and Company Secretary’s

responsibilities

• trusted advisor to the Board on corporate governance matters;

• support for the Chair of the Board and non-executive directors;

• ensuring that the Board and committees have the appropriate

type and quality of information they need to make sound

business decisions; and

• ensuring that the corporate governance framework and

practices remain fit for purpose.

92 Currys plc Annual Report & Accounts 2021/22

Corporate Governance Report continued

Time commitment and attendance

The Nominations Committee has considered the commitment

shown by the non-executive directors to the Company and

is satisfied that all directors devote appropriate time to their

roles. The Nominations Committee considers the external

appointments of each of the directors on at least an annual

basis. It was concluded again for 2021/22 that none of the

directors had external commitments that would hinder their

ability to devote sufficient time to discharging their Board role.

Details of the directors’ attendance at the Board meetings

that took place during the year can be found on page 80.

Board meetings and information

The Chair of the Board is responsible for ensuring that all

directors are properly briefed on issues arising at Board

meetings and that they have full and timely access to relevant

information. A comprehensive rolling forward agenda is in

place for the Board and each committee to ensure that all

regular updates and approvals can be considered in sufficient

detail whilst leaving appropriate space on meeting agendas

for the consideration of current issues. The Company uses

an electronic board paper system which enables the safe

and secure dissemination of quality information to the Board.

Paper templates and guidance are provided to ensure that

directors are provided with the information they need to be

able to discharge their duties. Formal minutes of the Board and

committee meetings are prepared by the General Counsel and

Company Secretary, or their nominee, and are reviewed and

approved by the Board or committee at the next meeting.

The Chair of the Board maintains regular communications with the

non-executive directors in between meetings. Time is provided

before and after every Board meeting for the non-executive

directors to meet without the executives present. Board dinners

are held periodically on an evening prior to a Board meeting to

provide the opportunity to discuss corporate strategy, business

performance and other matters in an informal setting. The

directors attended a virtual Board dinner in December 2021 due

to Covid-19 but were able to attend Board dinners in person in

September 2021, March 2022 and April 2022.

Board meetings are usually held at the Company’s head

office but were held by videoconference during the Covid-19

pandemic when it was not safe to meet in person. The Board

usually holds meetings at other Group locations from time

to time. This enables directors to visit stores and operational

centres throughout the portfolio and gain a deeper

understanding of the business. The March 2022 Board meeting

was held at the Company’s distribution centre in Newark.

Governance

Financial Statements

Investor Information

Strategic Report

Composition, Succession

and Evaluation

Board composition and independence

At year end, the Board comprised eight members: the Chair of the

Board, two executive directors and five non-executive directors,

each of whom is determined by the Board to be independent in

character and judgement and who provide effective challenge to

the Board and the business. The Nominations Committee considers

the criteria set out in the Code when considering independence,

as well as contributions made during Board deliberations. The

independent non-executive directors are Tony DeNunzio, Eileen

Burbidge, Andrea Gisle Joosen, Fiona McBain and Gerry Murphy.

More than half of the Board (excluding the Chair of the Board,

Ian Livingston) is considered to be independent in accordance

with the Code. Every year the Board, supported by the

Nominations Committee, considers the collective skills, experience

and the composition of the Board and assesses whether or not

the Board membership enables the effective delivery of the

Company’s strategy.

During the year, Bruce Marsh joined the Company on 12 July

2021 as the Group Chief Financial Officer, replacing Jonny

Mason who stepped down from the Board on 9 July 2021. On

8 September 2022, Ian Livingston will step down from the Board

and Ian Dyson will become Chair of the Board and Nominations

Committee. The Board, with the support of the Nominations

Committee, considered the composition of the Board and

its committees during the year. The Chair of the Board keeps

Board composition under regular review and addressed this

specifically with each director as part of the one-to-one

meetings held during the Board effectiveness review process.

Overall, the Board is satisfied that the current composition is

appropriate given the needs of the business.

In accordance with the Code, all directors will stand for

re-election at the Company’s Annual General Meeting (‘AGM’)

2022 other than Ian Livingston who will step down from the Board

at the meeting. Biographical information, committee membership

and the Board meeting attendance of each of the directors

submitting themselves for re-election is shown on pages 82 and

83. Ian Dyson will stand for election at the Company’s 2022

AGM and his biography is included in the Notice of AGM.

Board succession and changes to the Board

The current average director tenure is six years. Two non-executive

directors have been on the Board since the formation of the

Company in 2014. The Board, with the support of the Nominations

Committee, continues to view the need for robust succession

plans as a priority. Further information on succession planning

is available in the Nominations Committee report on page 110.

In respect of senior management succession planning, the

Board was briefed on changes to the Executive Committee

membership during the year and received an update on the

performance of this Committee at a Board dinner during April

2022. The Executive Committee complete a detailed talent

review of Group Leadership Team members on a quarterly basis

and review the top 30 critical roles in the business to monitor

diversity and ensure that strong development plans are in place.

The Board receive regular updates on talent and succession

planning via the Group Chief Executive and the Chief People,

Communications and Sustainability Officer.

Annual Board evaluation

2020/21 process outcomes

The 2020/21 Board performance evaluation was conducted

by way of the circulation of questionnaires and individual

interviews between the Chair of the Board and each director.

The outcomes of this process are summarised below.

The directors provided positive feedback including in particular:

• that the Board members work together effectively and

constructively to promote the long-term sustainable success

of the Company;

• that the executive team had shown excellent leadership

during the Covid-19 pandemic;

• that the new colleague listening forums had been effective;

• that Board agendas had improved during the year to enable

increased quality of discussions on key topics;

• that there is significant Board discussion and challenge on

the impact that decisions made will have on the Company’s

stakeholders; and

• that the talent review updates the Board has received during

the year have provided a good view of the talent pipeline

and a framework for executive team succession planning.

The process identified some opportunities to enhance Board

effectiveness:

• the Board to receive additional training on topics relevant to

the Group for example trends in technology evolution and

the impact of climate change goals on the business and its

products and services;

• the Board to receive more frequent updates on the results of

colleague surveys and feedback;

• the quality of Board papers had improved during the year but

there was an opportunity to further improve consistency; and

• the Board to consider the appropriate balance of meetings

that should be held in person or by video conference once

it was safe to resume travel and business meetings in person.

Each of these follow up actions has been successfully

implemented.

2021/22 process

The Code recommends that the performance of the Board be

reviewed externally every three years and an external evaluation

of the Board was carried out in 2021/22. Clare Chalmers Limited

was engaged to carry out this evaluation. The process included a

document review, director and key stakeholder interviews and the

observation of Board meetings held on 18 January and 9 March

2022 and an Audit Committee meeting held on 7 March 2022.

94 Currys plc Annual Report & Accounts 2021/22

The process addressed all matters relating to the performance

of the Board and included the roles of the executive and

non-executive directors, the Board, committees, the effectiveness

of each director and the Chair of the Board, leadership, culture,

strategy and corporate governance. A report summarising the

findings of the review was tabled at the Board meeting on 27 April

2022. Overall, the directors provided positive feedback on the

performance of the Board, highlighting in particular that:

• the Board has a good mix and balance of skills, good gender

and cognitive diversity, and the non-executive directors

contribute valuable experience and insights;

• the Board is led by a supportive and collaborative Chair

who has a strong understanding of the business and makes

valuable contributions whilst ensuring that all Board members

contribute, and meeting time is used effectively;

• the Board is inclusive of the wider management team and

receives regular presentations from a variety of colleagues

across the business;

• sharing an early view of the three-year plan in June and giving

the Board the opportunity to discuss this with the full Executive

Committee ahead of the submission of the final plan in

November had worked well and increased the transparency

of the process for non-executive directors;

• performance reporting had improved during the year including

KPIs and performance against the three strategic priorities;

• risk governance had improved considerably with better

integration of risk into business planning and monitoring; and

• the Board has a strong customer-centric mentality.

The process identified some further actions to help enhance

effectiveness:

• ensure more time is spent on Chair and non-executive director

succession planning given the number of directors due to step

down from the Board in the next three years and the need

to enhance Board diversity – the full Board to be involved

in this process;

• enhance the Board skills matrix to distinguish the level of

expertise directors have in each skill area to support Board

succession discussions;

• increase the number of Board training sessions, to keep

directors updated on evolving and technical topics;

• the Board to receive more granular information on external

insights, market trends, competitors and market share;

• enhance performance and programme oversight by way of

dashboards that include the main metrics and improve the

view the Board has of progress against strategic goals and

how effectively investments are delivering;

• increase the frequency of reporting on colleague matters

including workforce engagement and invite a representative

from the International Colleague Forum to interact directly with

the non-executive directors in the absence of management; and

• take a more structured approach to evaluation of and

feedback from suppliers.

An externally facilitated Board effectiveness review will next

be completed during 2024/25.

Chair of the Board performance

The Senior Independent Director collated feedback from the

Board on the performance of the Chair of the Board and carried

out his annual performance review. The directors provided

positive feedback on the Chair of the Board’s leadership

during the year. The Board is of the opinion that the Chair of the

Board had no other commitments during the year that adversely

affected his performance, that his effectiveness in leading the

Board was not impaired and that he cultivated an atmosphere

that enabled challenging and constructive debate.

Individual director performance

Following the results of the external evaluation, the Board

confirms that all directors, including the Chair of the Board,

continue to be effective and demonstrate commitment to the

role, including having time to attend all necessary meetings

and to carry out other appropriate duties.

Board diversity

The Board composition review takes account of all forms of

diversity, including gender, social and ethnic backgrounds,

cognitive and personal strengths.

At year end, the Board had three female directors (37.5% of the

Board), one of whom is based outside the UK, one director that

meets the ethnic minority criteria as set out in the Parker Review

and the majority of the directors have substantial international

business experience. 25% of the Executive Committee members

are female.

The review this year again concluded that the Board possessed the

necessary personal attributes, skills and experience to discharge

its duties fully and to challenge management effectively.

The Company is committed to developing a diverse workforce

and equal opportunities for all. The Board recognises that

enhancing diversity in all its forms is a critical part of having an

effective and engaged workforce which in turn supports the

long-term sustainable success of the business. Whilst the Board

is strongly supportive of enhancing all forms of diversity across

the Board and workforce as a matter of priority, the Board does

not currently set specific targets on gender balance or ethnicity.

The Nominations Committee and the Board continue to be very

mindful of the benefits of greater diversity of gender, social

and ethnic backgrounds, and cognitive and personal strengths,

in all appointments.

In accordance with DTR 7.2.8A, the Nominations Committee

confirms that the Board has adopted the same diversity policy

as in place for UK & Ireland colleagues and senior management.

The Equality, Inclusion & Diversity: Dignity at Work Policy was last

reviewed in November 2021.

Corporate Governance Report continued

Governance

Financial Statements

Investor Information

Strategic Report

Board induction and training

New directors appointed to the Board receive a personal

induction programme, together with guidance and training

appropriate to their level of previous experience. Each director

is given the opportunity to meet with senior management and

store colleagues and to visit the Group’s key sites. This enables

familiarisation with the businesses, operations, systems and

markets in which the Group operates. New directors also meet

with the Group’s Auditor and advisors. An example of a typical

induction programme is included in the table below. The Chair of

the Board will meet with a new director on appointment to agree

any appropriate changes to be made before the start of the

induction. Directors are provided with a comprehensive induction

pack on appointment. In addition, Group information and policies

are maintained within the electronic board paper portal to ensure

directors have access to current resources. Bruce Marsh joined the

Board on 12 July 2021 and completed his induction during the year.

The directors are invited to nominate topics that they would like

to receive training on and briefings are arranged from time to

time on governance, compliance and Company knowledge as

requested. During the year, the directors received training on the

impact of climate change on businesses and the management

of climate-related risks. Directors arrange individual meetings

with Executive Committee members as required when they

require additional information or context on a topic.

Standard induction programme briefings and information

Induction plans are customised for each incoming director depending on their individual requirements but will usually cover the

following key areas, meetings and locations:

Business and strategy

• Business model and strategy

• Markets and competitive landscape

• Overview of each business area

• Market opportunities

• ESG matters

Finance and audit

• Finance, treasury and tax overviews

• Current financial position and future projections

• Budget

• Accounting issues

• Audit report and findings

• Risk and internal controls

Investor relations

• Shareholder base and communications

• Analyst coverage and perspectives

• Communication policies

Governance

• Overview of committees

• UK Corporate Governance Code 2018 and best practice guidance

• UK listed company requirements including Market Abuse Regime

• Companies Act and directors’ duties

• Company Articles of Association and the role of the Board

People to meet

• Directors

• Committee chairs

• General Counsel and Company Secretary

• Members of the Executive Committee

• Senior management, including the Group Director of Internal Audit

• Members of the external audit team

• Store and distribution centre colleagues

Sites to visit

• Different format stores that are convenient for new director to visit

• The Newark Distribution Centre

• The store colleague training centre – The Academy@FortDunlop

96 Currys plc Annual Report & Accounts 2021/22

Corporate Governance Report continued

Audit, Risk and

Internal Control

The Audit Committee report is available on pages 100 to 108 and

includes content relevant to this section of the Code.

Risk management and internal control

The Board has overall responsibility for the Group’s system

of risk management and internal control and for reviewing its

effectiveness. The Board is supported by the Audit Committee,

the Group Risk and Compliance Committee, the Regulatory

Compliance Committee, business unit risk committees and the

Risk team in delivering on this responsibility.

The Group operates a process of continuous identification and

review of business risks. This includes the monitoring of principal

risks, undertaking horizon scanning to identify emerging risks,

evaluating how risks may affect the achievement of business

objectives and, by taking into account risk appetite, reviewing

management’s treatment of the risks.

The main business units, locations and functions are responsible

for preparing and maintaining risk registers and operating risk

management processes for their areas of responsibility. Risk

registers and the risk processes are undertaken in accordance

with a consistent Group risk management methodology, toolkit

and process.

The Group Risk and Compliance Committee meets at least three

times annually and any changes to the profile of each principal

risk are presented to, and reviewed by, the Executive Committee

each month. The work of the Group Risk and Compliance

Committee includes: assessing and challenging the consolidated

risk profile, agreeing and monitoring the Group’s principal risks;

determining the prioritisation of mitigating actions; reviewing the

Company’s horizon scanning processes and its emerging risks and

providing reports and recommendations to the Audit Committee

and Board including to assist with the setting of risk appetite with

regard to the principal risks.

Our approach to risk management continues to evolve as

partof our organisational focus on transformation and how we

continue optimal decision-making in an increasingly fast-moving

environment. The Group Risk team has continued to facilitate the

evaluation of the principal risks facing the Group.

Assurance provision

Board

Responsible for risk management and internal control

Defines Currys’ risk appetite

Reviews and approves the business risk profile

Group Risk and Compliance

Committee

• Reviews Group and business unit

risk registers

• Monitors the management of key risks

• Considers new and emerging risks

Audit Committee

• Reviews the effectiveness

of internal control and risk

management

• Approves the annual internal

and external audit plans

• Considers the internal audit

reviews across the Group

Executive management

• Responsible for the

implementation of the risk

management process and

the operation of the internal

control environment

Supported by the Group Director Internal Audit, Risk & Insurance

ESG Committee

Regulatory

Compliance

Committee

Business Continuity

Planning Steering

Committee

Information Security

and Data Protection

Committee

Business unit and

functional risk

experts

Group risk management structure

Governance

Financial Statements

Investor Information

Strategic Report

In addition to the Group’s principal risks, the business faces

emerging threats which have been identified through horizon

scanning that may potentially impact the business in the

longer term. The Group Risk and Compliance Committee

evaluates the appropriateness of management planning

to address such emerging risks. In some areas, there may be

insufficient information to understand the scale, impact or

velocity of these risks. Emerging risks continue to be monitored

as part of the ongoing risk management process in order to

ensure that action is taken at the right time.

The Directors confirm that they have carried out a robust

assessment of the principal and emerging risks facing the Group,

including those that would threaten its business model, future

performance, solvency or liquidity. A description of these risks,

together with details of how they are managed or mitigated,

is set out on pages 58 to 64.

The system of risk management and internal control can only

provide reasonable and not absolute assurance against material

errors, losses, fraud or breaches of laws and regulations.

The Board also monitors the Company’s system of risk

management and internal control and conducts a review of its

effectiveness at least once a year. This year’s review covered all

material controls during the year and up to the date of approval

of the Annual Report and Accounts 2021/22 and concluded that

an effective system of risk management and internal control

operated throughout the period. The review was approved by

the Audit Committee and the Board.

The diagram opposite shows the governance structure in place

over the Group’s risk management activities, as at 6 July 2022.

Risk appetite

Currys faces a broad range of risks reflecting the business

environment in which it operates. The risks arising from Currys’

business environment and operating model can be significant.

Successful financial performance for the business is achieved

by managing these risks through intelligent decision-making and

an effective control environment that details the processes and

controls required to mitigate risk.

The Company’s risk appetite is set by the Board and governs

the amount of acceptable risk within which we operate. Our

Group risk appetite is further disaggregated by principal risk

and takes into consideration the acceptable level of risk across

strategic, operational, financial and regulatory risks faced by

the business. Reference to our appetite in business decisions

provides guidance for objective, risk-aware decision-making.

A three-point scale is used to assess the risk appetite for each

of our principal risks. If excessive levels of risk are being taken,

a series of actions are identified to bring the risk back within an

acceptable level.

Currys’ general risk appetite is a balanced one that allows taking

measured risk as the Company pursues its strategic objectives,

whilst aiming to manage and minimise risk in its operations.

Currys recognises that it is not possible or necessarily desirable

to eliminate all of the risks inherent in its activities. Acceptance

of some risk is inherent in operations and necessary to foster

innovation and growth within its business practices.

Committed to effective risk management

The Board has overall responsibility for the system of internal

control and for reviewing its effectiveness. It relies on the Audit

Committee and the Group Risk and Compliance Committee

to assist in this process. In addition, members of the Executive

Committee, operating through the Risk Committee, are

accountable for identifying, mitigating and managing risks in

their area of responsibility. Management is also responsible for

implementing controls that are designed to ensure regulatory

compliance, financial and operational control, and to confirm

that these operate effectively to protect the business from loss.

The Board has conducted a review over the effectiveness of the

process for identifying, evaluating and managing the significant

risks faced by the Group and the operation of related controls.

The Audit Committee further reviewed aspects of the internal

control environment as outlined in the Audit Committee report

on page 100. The Board has considered the controls findings

raised in the Independent Auditor’s report on pages 149 to

162. No other significant failings or weaknesses were identified

during the period ending 30 April 2022. Where areas have been

identified that require improvement, plans are in place to ensure

that necessary actions are taken and that progress is monitored.

A report of the principal risks together with the viability statement

can be found on pages 60 to 65.

Controls, by their very nature, are designed to manage rather

than eliminate risk and can only provide reasonable assurance

against material misstatement or loss.

98 Currys plc Annual Report & Accounts 2021/22

Corporate Governance Report continued

Our system of internal control

Our system of internal control is built on the pillars of Governance, The Tone from the Top,

Control Activities, Risk Management and Assurance. These are more fully described below:

Governance

• The Board has defined a risk appetite which sets the boundaries within which risk-based

decision-making can occur and outlines the expectations for the operation of the

control environment.

• A Delegation of Authorities operates across the Group.

• Business planning, annual budgeting process and the setting of personal business objectives are

aligned to ensure focus on delivery of activities to support the delivery of strategic objectives.

• Policies and procedures are in place outlining the requirements for the control in finance,

operational, technology, regulatory and people areas. These include detailed standards

for the operation of Infosec, PCI and Data compliance.

• Across the business, central functions and business committees support the operation of an

effective risk and control environment.

The Tone from the Top

• The Tone from the Top communicates a clear commitment to do the right thing for customers,

colleagues and shareholders. Colleague behaviours are outlined in the Code of Business Conduct.

• The organisation demonstrates its commitment to ethical values through its range of ESG

initiatives and programmes.

• The business is committed to maintaining an ethical supply chain and undertakes activities to

ensure that our suppliers satisfy our Responsible Sourcing Policy.

• All senior managers and colleagues engaged in FCA-regulated activities are required to

complete an annual Ethical Conduct declaration.

• The operation of a 24/7 whistleblowing hotline to enable the reporting of breaches of ethical

or policy requirements.

Control Activities

• All major capital and change programmes are evaluated by the Change Board. This includes

consideration of the risk involved to achievement of successful delivery and the achievement

of projected benefits.

• A Programme Management Office operates to oversee delivery of our major Perform and

Transform change initiatives.

• Control activities operate to manage risk associated with our technology and information

security. These continue to evolve in line with the deployment of new systems and to meet the

challenges posed by external threats.

• A minimum controls framework is in place defining the key financial controls that are expected

to operate across the businesses core processes and activities.

• A conduct risk and control framework identifies control objectives for activities that underpin

the delivery of good customer outcomes in our financial services regulated activities.

• Training and development is provided to colleagues to cover their responsibilities for risk

management, compliance, and their operational obligations.

• Our performance management process holds colleagues accountable for their responsibilities.

• Fraud and loss prevention processes operate across our omnichannel and supply chain activities.

• Continuous improvement takes place throughout the organisation to improve the operation

of processes and controls. This is informed by actions identified through internal audit and

compliance monitoring reviews as well as customer feedback, the results of quality assurance

and through the complaints management process.

• The business is working towards compliance with potential UK SOX requirements.

Governance

Financial Statements

Investor Information

Strategic Report

Risk Management

• A risk identification process operates in accordance with the Group risk management

methodology. This ensures that risk management takes place consistently across the Group

to identify and evaluate the significant risks faced by the Group.

• The Group Risk Register covers the principal risks faced by the business, their potential impact

and likelihood of occurrence and the key controls or actions established to mitigate these risks.

• The risk management framework operates across the business with key business units

undertaking risk assessment and risk management activities.

• The Group Risk team undertakes horizon scanning reviews to identify emerging risks and

opportunities that may impact the business.

• The Group Risk and Compliance Committee meets at least three times a year to review the

management of risk arising out of the Group’s activities and to monitor the status or risk and

actions at the Group and business unit level.

• The Board carries out an assessment of the principal risks and emerging risks together with

matters that would threaten the business model, future performance, solvency and liquidity.

• The Board conducts a review of the effectiveness of the process for identifying, evaluating

and managing the significant risks faced by the Group and the operation of related controls.

Assurance

• The Audit Committee approves the annual internal audit programme. The progress of the plan

and the results of the audits are reviewed throughout the year.

• A Compliance Monitoring function reviews operation of financial services regulated activities.

• Annual evaluations are undertaken by business management against the minimum control

framework in order to ensure that the control environment operates as intended. Any

deficiencies identified are subject to remedial action.

• A broad range of assurance activities are undertaken across the business by functional

management to review the management of key risks.

• The Group communicates with external stakeholders, including industry bodies and regulators

on the management of risks and issues.

Internal audit

The Group has an internal audit department which conducts

audits of selected business processes and functions. The Group’s

internal audit plan sets out the internal audit programme for the

year and is usually agreed at the April Audit Committee meeting

for the year ahead. The internal audit plans are prepared taking

into account the principal risks across the Group with input

from management and the Audit Committee. The internal audit

plan is designed each year to test the robustness of financial

and operational controls and to determine whether operating

procedures are designed and operating effectively. The Audit

Committee considers the alignment of the internal audit plan with

the principal risks faced by the Group as part of its approval

process. The Audit Committee approved the 2022/23 internal

audit plan in April 2022, having considered the audit priorities.

The Audit Committee Chair receives and reviews all reports from

the internal audit department detailing its material findings from

testing performed and any recommendations for improvement. The

Audit Committee receives each audit report with a summary at each

meeting. The internal audit team tracks and reports on the progress

against the audit plan and the implementation of action plans

agreed with management. Once closed, the action plans agreed

with management can be reviewed to determine whether any new

controls and procedures have been implemented effectively.

The Audit Committee considered the effectiveness of the

internal audit department by considering; scope, resources and

access to information as laid out in the internal audit charter;

the reporting line of internal audit; the annual internal audit

work plan; and the results of the work of internal audit. The Audit

Committee concluded that the internal audit function operated

effectively during the year.

Capital and constitutional disclosures

Information on the Company’s share capital and constitution

required to be included in this Corporate Governance statement

is contained in the Directors’ Report on pages 84 to 86. Such

information is incorporated into this Corporate Governance

statement by reference and is deemed to be part of it.

The annual general meeting provides an opportunity for the

Company to engage with shareholders and for the Board to

provide an account of the progress made by the business

during the year, along with a synopsis of current issues facing the

business. Shareholders can also submit any questions to the Board

at any time of the year via the General Counsel and Company

Secretary at cosec@currys.co.uk. We look forward to receiving

your feedback and questions.

Further financial and business information is available on the

Group’s corporate website, www.currysplc.com.

Lord Livingston of Parkhead

Chair of the Board

6 July 2022

100 Currys plc Annual Report & Accounts 2021/22

2021/22 HIGHLIGHTS

• Consideration of accounting and

management judgements.

• Consideration of the assurance

process for environment, social

and governance (‘ESG’) data

disclosures.

• Business deep dives including

IT general controls, information

security, data and internal

controls in the Nordics and

Greece.

• Consideration of the continuing

implications of the Covid-19

pandemic and challenging

trading environment.

Chair’s statement

I am pleased to present the Audit Committee (the ‘Committee’) report for the year

ended 30 April 2022. This report describes how the Committee has carried out its duties

to provide independent scrutiny of the Group’s financial reporting, risk management

and internal control systems during the year, in order to determine whether these remain

effective and appropriate.

During the year, I met regularly with the Group Chief Financial Officer, the Chief

Information Security Officer and the Group Director of Internal Audit between

scheduled Committee meetings and in the absence of management to discuss their

reports as well as any relevant issues. The other Committee members also frequently

contacted members of management directly when they had questions on Committee

papers received. I met regularly with members of the Deloitte LLP audit team as part

of the ongoing review of their effectiveness. I have also met regularly with members

of the KPMG LLP audit team as they have commenced their preparation to take over

as external Auditor for the 2022/23 financial year.

This year, the Committee has considered accounting and management judgements and

particularly in respect of the continuing implications of Covid-19 and the challenging

external trading environment. The Committee has received assurance on the process for

capturing ESG metrics as the Group’s disclosures are enhanced in this area. Oversight

of information security and cyber security programmes have been a key area of focus

for the Committee this year. An update on Cyber has been provided at each scheduled

quarterly Committee meeting. Data management and regulatory compliance continue

to be important areas of Committee focus in addition to accounting matters and other

duties. The Committee continues to have oversight across the international footprint

of the Group.

There have not been any significant changes to the responsibilities and role of the

Committee during this financial year. The Committee continues to monitor with interest

the external market reforms designed to enhance the quality of audits and anticipates

that there will be an evolution of the duties of audit committees.

The Committee considered the requirements arising from the Companies (Miscellaneous

Reporting) Regulations 2018 and the UK Corporate Governance Code 2018 (the

‘Code’) as part of the process to review the non-financial information included in this

Annual Report and Accounts, including in particular the section 172(1) statement on

pages 34 and 39.

Number of meetings

The biographical details for each

Committee member are available on

pages 82 and 83.

Audit Committee topics coverage 2021/22

(1) Fiona was absent from two Committee meetings during the year due to illness.

(2) Gerry was appointed as Acting Committee Chair for two meetings during the year in Fiona’s absence.

Bribery and

corruption: 1

Data protection: 1

Compliance: 5

Information and

cyber security: 5

www.currysplc.com

Committee Terms of Reference last

approved: 18 January 2022 and are

available on the Company’s website at

www.currysplc.com

FURTHER

INFORMATION

Committee members Meeting attendance

Fiona McBain (Chair) 4/6

(1)

Eileen Burbidge 6/6

Gerry Murphy 6/6

(2)

Internal controls: 4

IT general controls: 5

Risk review: 4

Whistleblowing: 5

Audit

Committee report

101

Governance

Financial Statements

Investor Information

Strategic Report

Meetings and membership

The Committee met six times during the period under review.

There were five scheduled meetings. One additional Committee

meeting was arranged with management during the year to enable

an additional detailed discussion on the accounting judgements

for the Annual Report and Accounts 2021/22. Since the year end,

there has been two further Committee meetings. The Chair of the

Board, Group Chief Executive, Group Chief Financial Officer,

Group Financial Controller, Group Director of Internal Audit,

General Counsel and Company Secretary and representatives

from Deloitte LLP, the external Auditor, have a standing invite

from the Committee Chair to join all Committee meetings.

Other members of senior management attend Committee

meetings by invitation including team members with responsibility

for information security and data management, those with

responsibility for internal controls including from the international

businesses, and the Director of Group Risk and Insurance. The

Committee’s deliberations are reported by its Chair at the next

Board meeting and the minutes of each meeting are circulated

to all members of the Board.

There have not been any changes to the membership of the

Committee during the financial year. Gerry Murphy was appointed

as Acting Committee Chair for two meetings in the absence of

Fiona McBain due to illness. In compliance with the Code, the

Committee continues to consist exclusively of independent non-

executive directors. The Board continues to be satisfied that the

Chair of the Committee, a member of the Institute of Chartered

Accountants in England and Wales, and Gerry Murphy, also a

member of the Institute of Chartered Accountants in England and

Wales, meet the requirement for recent and relevant financial

experience. The Committee, as a whole, has competence relevant

to the sector in which the Company operates. The biographical

details outlining the relevant experience of the Committee

members can be found on pages 82 and 83. The Company

Secretary, or their nominee, acts as Secretary to the Committee

and attends all meetings. The Committee’s deliberations are

reported by its Chair at the subsequent Board meeting and the

minutes of each meeting are circulated to all members of the

Board following approval.

The Committee members meet without management present before

and after each Committee meeting. The Group Director of Internal

Audit and representatives of Deloitte LLP are invited to these private

discussions periodically to allow discussion of matters which they

may wish to raise in the absence of management.

In undertaking its duties, the Committee has access to the

services of the Group Director of Internal Audit, the Group Chief

Financial Officer, the General Counsel and Company Secretary

and their respective teams, as well as external professional

advice as necessary. The Board makes funds available to the

Committee to enable it to take independent legal, accounting or

other advice when the Committee believes it necessary to do so.

Looking ahead

Some aspects of the business transformation of the Group

were delayed by the impacts of the Covid-19 pandemic. The

Covid-19 pandemic has also had extensive impact on the

Group’s operations by causing fundamental changes to current

and most likely future customer behaviours and the risks to which

companies are exposed. The Committee will continue to keep

those considerations and risks that fall within the Committee’s

remit under review. The Committee will continue to support the

business transformation work by reviewing and challenging the

governance, risk and control environments relating to strategic

plans. The Committee will continue to receive presentations from

management on the challenges faced by the business and the

operation of internal controls. The Committee will also continue to

monitor the operation of the ‘three lines of defence’, as well as the

evolving enterprise risk landscape and regulatory environment.

Responsibilities

The Committee assists the Board in fulfilling its oversight

responsibilities by acting independently from the executive

directors. There is an annual schedule of items which are

allocated to the meetings during the year to ensure that the

Committee covers fully those items within its Terms of Reference.

These items are supplemented throughout the year as key

matters arise.

Key matters considered

The principal activities of the Committee during 2021/22

included:

• considering significant accounting and reporting judgements,

the appropriateness of taxation disclosures and the

appropriateness of the Group’s going concern position and

longer-term viability statement;

• considering and recommending that the Annual Report and

Accounts 2021/22, when taken as a whole, are fair, balanced

and understandable;

• reviewing the interim results published in December 2021;

• considering the presentation, fairness, and balance of the

Group’s alternative performance measures (‘APMs’);

• considering the implications of the Covid-19 outbreak relevant

to the remit of the Committee;

• reviewing the Group Risk Register and considering the

effectiveness of the risk management system and internal

controls, operated by management;

• considering updates on IT general controls, information

security, IT infrastructure and data management;

• providing oversight of the businesses regulated by the

Financial Conduct Authority (‘FCA’) and receiving reports from

the Head of Compliance;

• approving the internal audit annual plan, considering internal

audit reports and management actions, and monitoring the

effectiveness of internal audit in line with the approved

internal audit charter;

• considering the external audit plan, audit reports and updates

from Deloitte LLP;

102 Currys plc Annual Report & Accounts 2021/22

Audit

Committee report continued

Principal duties of the Committee

Accounting and financial reporting matters

• monitoring the integrity of the interim statement and annual

report and accounts, and any formal announcements

relating to the Group’s financial performance, reporting

to the Board on significant reporting issues and judgement

contained in them;

• reviewing significant financial reporting judgements and

accounting policies;

• reviewing the Committee’s report outlining the Committee’s

activities for inclusion in the Company’s annual report and

accounts;

• advising the Board on whether, as a whole, the annual report

and accounts are fair, balanced and understandable;

• considering the going concern statement;

• considering and reviewing the statement of the Group’s

viability over a specified period;

• having regard to the applicable legal, regulatory and

best practice requirements and standards for reporting

including the UK Corporate Governance Code, including

the Code, the UK Financial Reporting Council, the FCA’s

Disclosure and Transparency Rules and Listing Rules and

the recommendations of the Taskforce on Climate-related

Financial Disclosure;

Risk management and internal control

• reviewing the Group’s financial controls and internal control

effectiveness and maturity;

• reviewing the Group’s risk management systems and risk

appetite;

• reviewing the statements to be included in the annual report

and accounts concerning internal control, risk management

and the viability statement;

Compliance, conflicts, whistleblowing and fraud

• reviewing the adequacy of the Company’s whistleblowing

arrangements;

• reviewing the Company’s procedures to detect and

manage fraud;

• reviewing the Company’s systems and controls for the

prevention of bribery;

• considering the effectiveness of the Company’s

Compliance function;

Internal audit

• approving the appointment of the Group Director of

Internal Audit;

• monitoring and assessing the effectiveness of the Group’s

internal audit function;

• approving the internal audit plan;

• considering the reports of work performed by internal

audit and reviewing the actions taken by management

to implement the recommendations of internal audit;

• considering the major findings of internal investigations;

External audit

• considering recommendation of the external Auditor’s

appointment, reappointment and removal to the

shareholders at the annual general meeting and approving

the external Auditor’s remuneration;

• reviewing the results and conclusions of work performed

by the external Auditor;

• reviewing and monitoring the relationship with the external

Auditor, including their independence, objectivity,

effectiveness and terms of engagement;

General matters

• any specific topics as defined by the Board; and

• referring matters to the Board which, in its opinion, should

be addressed at a meeting of the Board.

• considering the effectiveness of the external Auditor and

the appointment of KPMG LLP as the external Auditor from

2022/23; and

• receiving presentations and challenging management on

matters such as system access controls, data management,

payment processes, supplier funding, regulatory

compliance related customer claims, minimum control

standards assessments, whistleblowing and procedures in

place to prevent bribery and corruption.

Accounting and financial reporting matters

The Committee is responsible for considering reports from

the external Auditor and monitoring the integrity of the interim

statement and annual report and accounts in conjunction

with senior management. During the year ended 30 April 2022,

consideration was given to the suitability and application of the

Group’s accounting policies and practices, including areas where

significant levels of judgement have been applied or significant

items have been discussed with the external Auditor.

103

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Financial Statements

Investor Information

Strategic Report

Accounting and financial reporting matters Matters considered and how the Committee discharged its duties

Going concern and

viability statements

The Committee reviewed the processes and assumptions underlying both the going concern

and longer-term viability statements made on page 65 of the Annual Report and Accounts

2021/22.

In particular, the Committee considered:

• the impact in respect of uncertainties including the Covid-19 pandemic, a

macroeconomic downturn and climate risk;

• management’s assessment of the Group’s prospects including its current position,

assessment of principal business risks and its current business model, future cash

forecasts, historical cash flow forecasting accuracy, profit projections, available

financing facilities, facility headroom and banking covenants;

• the appropriateness of the three-year time period under assessment, noting the

alignment of the period with the Group’s detailed strategic planning process, as well

as the shorter-term nature of the retail market in which the Group operates; and

• the robustness and severity of the stress-test scenarios with reference to the Group’s Risk

latest Board-approved budgets, strategic plans, and indicative headroom under the

current facilities available – examples of which included the impact of regulatory, taxation

or information security incidents, and reduced forecast profitability and cash flow as a

result of a significant change in mobile phone consumer behaviour.

The Committee concurred with management’s conclusions that the viability statement,

including the three-year period of assessment, disclosed on page 65 is appropriate.

The Board was advised accordingly.

Fair, balanced and

understandable

In ensuring that the Group’s reporting is fair, balanced and understandable, the Committee

reviewed the classification of items between adjusting and non-adjusting items including

consideration of the £60 million pre-tax adjusting items disclosed in note A5 in the Glossary

and definitions section and the tax impact thereon. The assessment considered whether

items fell within the Group’s definition of adjusting items as well as the consistency of

treatment of such items year-on-year.

The Committee gave due consideration to the integrity and sufficiency of information

disclosed in the Annual Report and Accounts 2021/22 to ensure that they explain the

Group’s position, performance, business model and strategy. An assessment of narrative

reporting was included to ensure consistency with the financial reporting section, including

appropriate disclosure of material adjusting items, and appropriate balance and

prominence of statutory and non-statutory performance measures. In response to the

guidelines on APMs issued by the European Securities and Markets Authority (‘ESMA’), the

Committee considered the use of such measures and additional information on those APMs

used by the Group is provided in the Glossary and definitions section on pages 231 to 245.

The Committee concluded that the Annual Report and Accounts 2021/22, taken as a whole,

are fair, balanced and understandable, and that the measures used and disclosures made

are appropriate to provide users of the Annual Report and Accounts 2021/22 with a

meaningful assessment of the performance of the underlying operations of the Group;

the Board was advised of the conclusion.

Matters of significance

and areas of judgement

The Committee received reports and recommendations from management and the external

Auditor setting out the significant accounting issues and judgements applicable to the

following key areas. These were discussed and challenged, where appropriate, by the

Committee. Following debate, the Committee concurred with management’s conclusions.

104 Currys plc Annual Report & Accounts 2021/22

Audit

Committee report continued

Accounting and financial reporting matters Matters considered and how the Committee discharged its duties

Revenue recognition

The Group discloses revenue recognition in relation to network commissions as a ‘key source

of estimation uncertainty’ as set out in note 1(d) to the Group financial statements.

The Committee reviewed management’s assessment of these policies with reference to

contractual terms, the Group’s historical experience of customer behaviour, reliability of

information received from MNOs, legislative changes, future expectation of consumer

behaviour and changes in the trends within the mobile industry. Particular attention was

paid to the consistency of application of the underlying assumptions used, significant

changes in inputs to the valuation model, historical forecasting accuracy, and the network

commission contract assets and receivables disclosures included in note 14 to the Group

financial statements. The carrying value of ongoing network commission contract assets

and receivables at the balance sheet date was £190m (2020/21: £239m).

Supplier funding

A number of arrangements exist relating to supplier funding across the Group, including

promotional support and volume rebates. The Committee has continued to challenge

and debate with management its approach to its recognition and accounting treatment of

supplier funding. In addition, the Committee continues to monitor the effectiveness of the

controls in place to mitigate the risk of material misstatement of supplier funding recognition.

Further information in relation to supplier funding can be found in note 3 to the Group

financial statements.

This is a key accounting matter considered by the Audit Committee due to the significant

size of the supplier funding income throughout the year. The Committee have reviewed

and concurred with managements conclusion that this is not a key source of estimation

uncertainty or critical accounting judgement for the year end due to the level of evidence

and support obtained to confirm the accuracy of the supplier funding income.

Impairment testing of

goodwill, intangible

assets and store-based

investments

The Group discloses impairment of non-financial assets as a ‘key source of estimation

uncertainty’ as set out in note 1(d) to the Group financial statements.

The Group has significant goodwill, intangible assets and fixed asset investments which are

reviewed for impairment annually, or where there is an indicator of impairment. The Committee

reviewed appropriateness and accuracy of cash flow forecasts, discount rates and long-term

growth rates used in the impairment review performed at both the interim and year end dates.

Specific attention was paid to cash flow forecasts in light of uncertainties such as the Covid-19

pandemic, a macroeconomic downturn, climate risk and the level of sensitivities applied by

management in determining reasonably possible changes to cash flows. As part of the review of

the store-based asset impairment assessment, whereby a material impairment and impairment

reversal was recognised within the period, particular attention was given to the key assumptions

of how customers will behave in the future, in terms of shopping in store and/or online and the

implications on the impairment modelling.

As a result of a number of strategic changes, specifically related to our Future Mobile Offer

and the decision to close the Acton Campus head office after signing a deal with WeWork,

a significant impairment charge and onerous contract costs were recognised as adjusting items.

Further information can be found in notes 9, 10, and 11 to the Group financial statements.

Taxation

The Group operates across multiple tax jurisdictions. The complex nature of tax legislation in

certain jurisdictions can necessitate the use of judgement.

The Committee reviewed the judgements and assumptions concerning any significant tax

exposures, including progress made on matters being discussed with tax authorities and, where

applicable, advice provided by external advisors. The total provisions recognised at the

balance sheet date amounted to £66m (2020/21: £65m).

The Committee also reviewed the appropriateness of the disclosures made around tax

provisions, the related contingent liabilities, and the deferred tax balances.

The Group discloses deferred tax assets in relation to UK losses carried forward as a

‘key source of estimation uncertainty’ and tax provisions and contingent liabilities in relation

to uncertain tax positions as a ‘critical accounting judgement’ as set out in note 1(d) to the

Group financial statements.

105

Governance

Financial Statements

Investor Information

Strategic Report

Risk management and internal control

The Committee is responsible for reviewing the Group’s risk management and internal control systems. Details of the overall risk

management and governance policies and procedures are given in the Corporate Governance Report on pages 87 to 99. The

Committee reviewed management’s assessment of risk and internal control, results of work performed by the second lines of

defence and internal audit, and the results and controls observations arising from the interim review procedures and the annual

audit performed by the external Auditor. The Committee also ensured that all risk topics were covered, as defined by its Terms

of Reference, with detailed reviews of risk topics scheduled throughout the year monitoring potential areas of concern.

Specific matters considered by the Committee to discharge its duties are detailed below:

Risk management and internal control Matters considered and how the Committee discharged its duties

Bribery and corruption

• The Committee reviewed the arrangements put in place to satisfy requirements to comply

with regulation for anti-bribery and corruption.

Data protection

• The Committee reviewed data protection compliance throughout the Group, particularly

in relation to the embedding of policies, procedures and processes implemented to

comply with the requirements of EU General Data Protection Regulation (‘GDPR’).

Compliance

• The Committee reviewed the nature of financial services regulated activities across

the Group’s business operations and the governance and oversight arrangements for

the operation of an effective FCA compliance regime in the business. The Committee

considered compliance and regulatory reports prepared by the Regulatory Compliance

Committee and monitored key developments and ongoing activities for the Compliance

team in areas of governance, policy and compliance monitoring.

Information security

and IT controls framework

• The Committee regularly reviews the progress of the ongoing security improvement

programme and periodically considers and reviews the IT general controls framework

and related improvement initiatives progressed by the management team,

in order to monitor that appropriate actions are taken.

• The Company is currently undergoing a large transformation programme across many areas

of the business including its IT infrastructure. All transformation programmes are managed

in line with the Group risk management methodology to manage the risk appropriately in

order to provide reasonable reassurance against material losses. This control framework

is intended to manage rather than eliminate the risk of failure and oversight of the security

programme is provided by the Committee that, along with the Board, receives regular

updates on the progress and maturity of our control environment.

Internal controls

• As per the obligations placed on the Committee under the Code, the Committee

formally considered a review of the system of risk management and internal control. The

Committee noted developments in the system of risk management and internal control,

management plans for 2021/22 and agreed the statements contained in the Annual

Report and Accounts 2021/22. The Committee continues to review the results of internal

audit reviews and minimum controls standards assessments.

Whistleblowing

• The Committee reviews a summary at every meeting of all whistleblowing calls received

by the Group, both through the independently operated hotline and other channels. The

Committee confirmed that the calls had been appropriately dealt with (both individually

and in aggregate) in accordance with the Group’s Whistleblowing Policy.

106 Currys plc Annual Report & Accounts 2021/22

Audit

Committee report continued

Internal audit

Internal audit is an independent, objective assurance function that impartially appraises the Group’s control activities. Internal

audit works with management to help improve the overall control environment and assist Group management, the Committee

and the Board in discharging their respective duties relating to maintaining an adequate and effective system of internal control

and risk management, and safeguarding the assets, activities and interests of the Group.

Internal audit Matters considered and how the Committee discharged its duties

Audit reviews of

significant risk areas

• The Committee considered the alignment of the annual internal audit plan with the key risks

of the business.

• During the period, internal audits included coverage of the following significant risk areas

of the business:

– information security and data protection;

– business transformation;

– IT resilience, integrity and disaster recovery;

– relationships with major suppliers;

– health and safety;

– business continuity;

– product safety; and

– financial services regulatory compliance.

• The Committee considered the key trends and material findings arising from internal audit’s

work and the adequacy of the agreed management actions in relation to those findings.

Assurance programme

• The Committee approved the annual internal audit plan and received an update relating

to the execution of the annual plan at each Committee meeting.

• As part of the rolling assurance programme, audits were performed over the following

processes to provide assurance to the Committee that controls were operating within these

areas:

– general business controls relating to UK & Ireland operations including the financial

services conduct risk framework, transformation project processes, identity and access

management, product safety, financial controls, customer experience processes and

ESG reporting;

– Nordics IT general controls, data protection, major change assurance, and product

safety; and

– Greek IT general controls and product safety.

• The Committee considered the actions taken by management in relation to the audit findings.

• The Committee considered the results from these audits during its assessment of the

effectiveness of the system of internal control operated by management. The Committee

concluded that the system of internal control was appropriately monitored and managed.

Effectiveness of internal

audit and adequacy of

its resources

• The Committee approved the internal audit charter, concluding the role and mandate were

appropriate to the current needs of the organisation.

• The Committee monitored the work of internal audit and formally reviewed the effectiveness

of internal audit and the adequacy of its resources, considering:

– scope, resources and access to information as laid out in the internal audit charter;

– the reporting line of internal audit;

– the annual internal audit work plan; and

– the results of the work of internal audit.

• The Committee concluded that the internal audit department had in all respects been

effective during the period under review and performed its duties in accordance with its

agreed charter.

107

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Financial Statements

Investor Information

Strategic Report

External audit

The external Auditor is appointed by shareholders to provide an opinion on the annual report and accounts and certain disclosures

prepared by Group management. Deloitte LLP acted as the external Auditor to the Group throughout the year. The Committee is

responsible for oversight of the external Auditor, including approving the annual audit plan and all associated audit fees. The key

matters in relation to external audit that were considered by the Committee were:

External audit Matters considered and how the Committee discharged its duties

Effectiveness of the

external Auditor

• The Committee reviewed and agreed the annual audit plan, specifically considering the

appropriateness of the key risks identified and proposed audit work, the scope of the audit

and materiality levels applied which are detailed in the Independent Auditor’s report on

pages 149 to 162.

• As part of the reporting of the half year and full year results, the Committee reviewed the

reports presented by Deloitte LLP in assessing the Group’s significant accounting judgements

and estimates, and considered the audit work undertaken, level of challenge and quality of

reporting.

• Following the 2020/21 year end, feedback on the effectiveness of the audit process in

addressing areas of key audit risk was obtained from members of the Committee and

regular attendees, members of the Finance team and senior management within the

businesses via a specifically designed questionnaire. The responses were then considered

by the Committee in conjunction with the outputs received and responsiveness of the Auditor

during the audit process. The results showed a favourable view of the audit process and of

Deloitte LLP as the external Auditor, specifically in relation to the consistent performance

noted for quality of audit delivery, level of challenge, integrity and service of the team, the

constructive relationship and the effectiveness of the communication.

• Following due consideration of the above, the Committee continues to be satisfied with the

quality and effectiveness of the external audit.

Auditor independence

• The Committee considered the external Auditor’s assessment of and declaration of

independence presented in the annual audit plan and final audit report, and the

safeguards in place to make such declarations.

• The Committee considered the annual audit fee and fees for non-audit services, with due

regard to the balance between audit and non-audit fees and the nature of non-audit fees

undertaken in accordance with the policy as set out below.

• The Committee reviewed and approved the Group policy on the employment of former

employees of the external Auditor in March 2022.

108 Currys plc Annual Report & Accounts 2021/22

Audit

Committee report continued

Policy on provision of non-audit services provided

by the external Auditor

Under the Group’s policy on Auditor independence, the Auditor

may only provide services which include:

a) audit services comprising issuing audit opinions on the Group’s

consolidated financial statements and on the statutory

financial statements of subsidiaries and joint ventures;

b) audit-related services comprising review of the Group’s

consolidated interim financial statements, and opinions/audit

reports on information provided by the Group upon request

from a third party such as prospectuses, comfort letters and

rent certificates, etc; and

c) services otherwise required of the Auditor by local law

or regulation.

Any exceptions are subject to pre-approval by the Group

Chief Financial Officer, and such permission is only granted in

exceptional circumstances. Where the non-audit assignment is

expected to generate fees of over £100,000, prior approval

must be obtained from the Committee.

During the period under review, the non-audit services performed

by the external Auditor primarily arose from the interim financial

review procedures and the requirement in Greek law for the

external auditor of the company to provide tax compliance

services. The Committee has reviewed the services performed by

the external Auditor during the year and is satisfied that these

services did not prejudice the external Auditor’s independence

and that it was appropriate for them to perform these services.

The level of non-audit fees paid to the external Auditor, which

was approved by the Committee, is set out in note 3 to the Group

financial statements and amounted to £0.3m (2020/21: £0.5m)

compared with £1.8m (2020/21: £1.6m) of audit fees. The non-

audit fees as a percentage of audit fees were 16.7% (2020/21:

31.3%), which reflects the restrictive policy governing the use of

Deloitte LLP for non-audit services.

External Auditor

Deloitte LLP has been the Company’s external Auditor since

the Company was formed on 7 August 2014 by the merger of

Carphone Warehouse and Dixons Retail. Deloitte LLP was the

external Auditor of both Carphone Warehouse and Dixons Retail

prior to 2014. In accordance with the Competition and Markets

Authority Statutory Audit Services Order, which is designed to

align with provisions of the EU Regulations on external audit

tender and rotation, and current guidance, the last period that

Deloitte LLP could have remained as external Auditor was the

2022/23 financial year.

At the end of the 2020/21 financial year, lead audit partner

Stephen Griggs (appointed from the 2016/17 audit) stepped

down in accordance with the Auditing Practices Board Ethical

Standards requirement to rotate the lead audit partner every

five years. David Griffin, formerly the key audit partner for

UK & Ireland and Group, moved into the role of lead audit

partner for the 2021/22 financial year.

During 2020/21, the Committee led a comprehensive tender

process to select a new external Auditor for the 2022/23

financial year. A full description of the process is available

in the annual report and accounts 2020/21. KPMG LLP will be

appointed as the Auditor of the Company for the financial year

2022/23 subject to shareholder approval to be sought at the

Company’s Annual General Meeting in September 2022.

Where necessary, any non-audit services provided by KPMG to

the Company ceased by 1 May 2021 in order to meet specified

‘cooling-in’ requirements in the year before appointment.

Consideration of external Auditor appointment

and independence

The Committee considers the appropriateness of the

appointment of the external Auditor each year, including the

rotation of the audit partner.

The Committee oversaw a formal and comprehensive tender

process for the appointment of the external Auditor during

2020/21. The Committee’s recommendation, that KPMG LLP be

appointed as external Auditor of the Company for the 2022/23

financial year was accepted and endorsed by the Board.

Accordingly, shareholder approval will be sought at the Annual

General Meeting in September 2022 to confirm the appointment

of KPMG LLP as external Auditor of the Company.

Fiona McBain

Chair of the Audit Committee

6 July 2022

109

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Financial Statements

Investor Information

Strategic Report

Disclosure

Committee report

2021/22 HIGHLIGHTS

• Assessment of whether the Company was in possession

of inside information.

• Preliminary results for the financial year ended 1 May 2021.

Trading updates including announcement of a £75m

share buyback.

• Interim results for the half year ended 30 October 2021.

Chair’s statement

I am pleased to present the Disclosure Committee (the

‘Committee’) report for the year ended 30 April 2022. The

principal role of the Committee is to ensure that adequate

procedures, systems and controls are maintained to enable

the Company to fully meet its legal and regulatory obligations

regarding the timely and accurate identification and disclosure

of all price sensitive information.

The Committee is comprised of the Group Chief Financial Officer

(Committee Chair), the Group Chief Executive and the General

Counsel and Company Secretary. The Chair of the Board and

the Senior Independent Director receive notices and papers for

all meetings and are able to act as ‘alternates’ to the Committee

members in the event that the quorum of three members cannot

be met. This has not been necessary during the year and all

Committee members have been able to attend all meetings.

The Company Secretary, or their nominee, acts as Secretary

to the Committee. The Committee’s deliberations are reported

by its Chair at the next Board meeting and the minutes of each

meeting are circulated to all members of the Board.

The Committee was considered as part of the externally

facilitated Board and committee effectiveness review that

was carried out this year and this review concluded that the

Committee discharges its duties effectively.

Meetings

There were five Committee meetings during 2021/22. Since the

financial year end, there has been one further meeting. Committee

meetings are scheduled in advance of preliminary and interim

results announcements and in advance of scheduled trading

updates. Meetings can be convened by the Company Secretary as

requested by the Committee Chair at other times as required. The

Committee receives input as appropriate from the other directors,

the Company’s brokers and senior management, and invites a

member of the Investor Relations team to attend all meetings.

Responsibilities

The principal duties of the Disclosure Committee are to:

• establish and maintain adequate procedures, policies,

systems and controls to enable the Company to fully comply

with its legal and regulatory obligations regarding the timely

and accurate identification and disclosure of all price

sensitive information;

• determine whether information is inside information and if it

requires immediate disclosure;

• keep under review the adequacy of the Disclosure and

Communications Policies, implement and monitor compliance;

• monitor communications received from any regulatory body

in relation to the conduct of the Group, and review any

proposed responses;

• consider generally the requirement for announcements,

including in relation to the delayed disclosure of inside

information, substantive market rumours, and leaks of inside

information;

• consider and give final approval for trading statements and/

or results to be released in order to meet legal and regulatory

requirements; and

• review the content of all material regulatory announcements,

transactional shareholder circulars, prospectuses, and any

other documents issued by the Company, and ensure that

these comply with all applicable requirements.

Key matters considered

During the year ended 30 April 2022, the Committee met to

consider the following key matters:

• assessments as to whether the Company was in possession of

inside information;

• the preliminary results for the financial year ended 1 May 2021;

• a trading update including the announcement of a £75m share

buyback programme;

• the interim results for the 26 weeks ended 30 October 2021; and

• the Peak trading update for the ten weeks ended 8 January

2022.

Bruce Marsh

Chair of the Disclosure Committee

6 July 2022

Number of meetings

(1) Bruce Marsh joined the Board and the Committee during the year on 12 July 2021 and has attended all Committee meetings held since his appointment. Jonny Mason

stepped down from the Board and the Committee on 9 July 2021 and attended the two Committee meetings held during the financial year prior to this date.

Committee members Meeting attendance

Bruce Marsh (Chair) 3/3

(1)

Alex Baldock 5/5

Nigel Paterson 5/5

Alternate members:

Ian Livingston, Chair of the Board and

Tony DeNunzio, Senior Independent Director

The biographical details for each

Committee member are available on

pages 82 and 83.

FURTHER

INFORMATION

110 Currys plc Annual Report & Accounts 2021/22

Nominations

Committee report

2021/22 HIGHLIGHTS

• Considered succession planning for key Board roles.

• Led the process to recruit a new Chair and

recommended the appointment of Ian Dyson to the

Board.

• Adopted a new Equality, Inclusion, & Diversity: Dignity at

Work Policy.

Chair’s statement

I am pleased to present the Nominations Committee (the

‘Committee’) report for the year ended 30 April 2022. The

Committee has continued to oversee the structure, size and

composition of the Board during the year, having regard to

the collective skills, knowledge, experience and diversity in

all its forms. This report sets out the key responsibilities of the

Nominations Committee and describes how it has discharged

its duties.

The Committee received an update on the external governance

and best practice standards that relate to its remit in November

2021. These requirements were discussed, and the Committee

concluded that the Board’s size and composition remained

appropriate to meet the current leadership needs of the

Group. It was agreed that temporary increases to the size of the

Board might help manage succession planning. The Committee

considered the time commitments of each director, director

independence, director tenure, the diversity of the Board, the

collective skills and experience of the Board, directors’ external

appointments and potential conflicts of interests.

The Board currently meets the voluntary diversity targets in both

the Hampton-Alexander Review and Parker Review although

is not complacent about diversity and will seek opportunities

to further increase diversity on the Board. An Inclusion and

Diversity Forum is in place to focus on increasing the diversity of

the workforce and more details about this forum are available

on page 112. All directors receive updates on colleague issues

including diversity at Board meetings.

Although succession planning and the oversight of the

development of a diverse pipeline for succession fall within

the remit of the Committee, these discussions have also taken

place at Board meetings during 2021/22. The Board received

a comprehensive People Plan update in April 2022 and this

included talent and succession planning. Enhancing diversity and

overseeing the succession planning process for key roles remains

a priority for the whole Board. As delivering the colleague

agenda is a critical component of the successful business

transformation of the Group, this work has been led by the

Committee but has warranted further input from all directors.

Meetings and membership

The Committee meets as and when required and at least twice

a year. The Committee held two meetings during the financial

year and a further meeting in May 2022. The majority of the

members of the Committee are independent non-executive

directors as required by the Code. Other members of the Board

or senior management can attend meetings at the invitation of the

Committee Chair. The Company Secretary, or their nominee, acts

as Secretary to the Committee. The Committee’s deliberations are

reported by its Chair at the next Board meeting and the minutes

of each meeting are circulated to all members of the Board.

Responsibilities

The principal duties of the Committee are to:

• review the structure, size and composition of the Board, and

recommend changes to the Board as necessary;

• give full consideration to orderly succession planning for both

the Board and senior management positions and oversee the

development of a diverse pipeline for succession;

• identify and nominate candidates to fill vacancies on the

Board when they arise;

• carry out a formal, rigorous and transparent selection process

of candidates, giving due regard to promoting the benefits of

diversity on the Board and senior management team, including

gender, social and ethnic backgrounds, and cognitive and

personal strengths; and

• review all the recommendations from the annual board

effectiveness process that relate to Board composition,

diversity or how effectively board members work together.

Number of meetings

Committee members Meeting attendance

Ian Livingston (Chair) 2/2

Tony DeNunzio 2/2

Andrea Gisle Joosen 2/2

The biographical details for each

Committee member are available on

pages 82 and 83.

www.currysplc.com

Committee Terms of Reference last

approved: 18 January 2022 and are

available on the Company’s website at

www.currysplc.com

FURTHER

INFORMATION

111

Governance

Financial Statements

Investor Information

Strategic Report

Key matters considered

The principal activities of the Committee during 2021/22

included the:

• evaluation of the size, composition and structure of the Board

and its committees;

• oversight of the process to recruit a new Chair of the Board,

consideration of candidates and recommendation of the

appointment of Ian Dyson;

• consideration of the independence and time commitments

of the directors;

• evaluation of director effectiveness during the year and

approval that each director be recommended for re-election

at the Annual General Meeting (‘AGM’) 2022;

• approval of the Company’s Equality, Inclusion, & Diversity:

Dignity at Work Policy;

• approval of the Director External Appointments Policy;

• approval of Committee’s Terms of Reference;

• approval of the role descriptions of the Chair of the Board,

Senior Independent Director and the Group Chief Executive;

and

• consideration of the external corporate governance

developments relating to the remit of the Committee.

Board evaluation

An externally facilitated Board effectiveness review was carried

out in 2021/22 by Clare Chalmers Limited. The evaluation

process concluded that overall, the Committee is operating

effectively. Further details on the outcomes of the Board

effectiveness review are available on page 93.

Appointments to the Board

The Committee has a formal, rigorous and transparent procedure

for the appointment of new directors. Appointments are made to

the Board based on objective criteria and with due regard to the

benefits of diversity and the leadership needs of the Company.

External search consultancies are used when recruiting directors.

The Committee uses a skills matrix tool when assessing the skills

and capabilities required in a new director, taking into account the

existing experience and expertise on the Board. The Committee

develops candidate profiles describing the skills, knowledge

and experience required for each new role.

Bruce Marsh joined the Board in July 2021. During the year, the

Committee led the process to appoint a new Chair of the Board.

Ian Dyson will join the Board on 1 September 2022 and become

Chair of the Board and Nominations Committee on 8 September

2022.

The process to recruit a new Chair was led by the Senior

Independent Director and executive search firm Korn Ferry

supported the Committee. The Committee agreed a role profile

taking into account the Board skills matrix and the skills and

capabilities needed to Chair a substantial consumer business

operating in a number of countries. The Senior Independent

Director discussed the draft role profile with each of the other

directors. The process included consideration of a long list of

over 60 candidates. Members of the Committee (excluding

the Chair) participated in over 30 candidate interviews as well

as discussions with Korn Ferry. Five candidates were shortlisted,

and this group included candidates with diverse characteristics.

Ian Dyson was the candidate who best met the criteria that

the Company had set for the new Chair. The Committee

recommended the appointment of Ian Dyson to the Board.

Succession planning

The Group requires a talented Board with appropriate

experience, expertise and diversity. The Committee monitors

the size and composition of the Board, leads the recruitment

of new directors and proposes any suitable candidates to

the Board for approval.

The Committee continue to be satisfied that the current Board size

of eight directors is appropriate and effective for the leadership

of the Group although increasing to a Board size of nine or ten

temporarily might be appropriate to enable succession planning

for key Board roles. During the year the Committee considered

Board tenure and, in particular, that two non-executive directors

will reach a nine-year tenure in August 2023 and the Chair of the

Board and Senior Independent Director both reach a nine-year

tenure in December 2024. The Committee agreed to initiate a

search for a successor to the Chair of the Board role and this

search was completed in May 2022.

The Committee considered it prudent to start this search early to

allow sufficient time to identify the most appropriate candidate

and for the orderly management of the succession of other

Board roles. The new Chair of the Board will participate in the

recruitment of new non-executive directors.

The Executive Committee carry out a detailed talent review

process across every area of the business. Succession plans are

in place for every member of the Executive Committee. The full

Board including the Committee members receive regular updates

on talent and succession from the Chief People Officer. The

Chair of the Board who is also the Committee Chair receives

regular updates during the year directly from the People team

on key appointments and initiatives. The Committee, together

with the Board, is focused on ensuring that credible succession

plans are maintained and that there is a talent pipeline for

future business leaders.

112 Currys plc Annual Report & Accounts 2021/22

Diversity

The Company is committed to developing a diverse workforce

and equal opportunities for all. The Board recognises that

enhancing diversity in all its forms is a critical part of having

an effective and engaged workforce which in turn supports

the long-term sustainable success of the business.

The Board meets the voluntary targets recommended by the

Hampton-Alexander Review and the Parker Review. At the end of

the financial year 37.5% of the Board, and 25% of the Executive

Committee, are female. One member of the Board meets the

criteria as set out in the Parker Review. Whilst the Board is strongly

supportive of enhancing all forms of diversity across the Board

and wider workforce as a matter of priority, the Board does not

currently set specific targets on gender balance or ethnicity.

The Committee and the Board continue to be very mindful of

the benefits of greater diversity of gender, social and ethnic

backgrounds, and cognitive and personal strengths, in all

appointments. The Board will actively seek to enhance diversity

on the Board during 2022/23 by taking steps to increase the

number of diverse candidates to be included in the process.

An Inclusion and Diversity Forum is in place to seek to enhance

diversity across the wider workforce and further information on

this forum and the activities the Group is carrying out in order to

enhance diversity is available on page 25.

In accordance with DTR 7.2.8A, the Committee confirms that a

diversity policy is in place (the Equality, Inclusion, & Diversity:

Dignity at Work Policy). This was last reviewed and approved

by the Committee in November 2021. The Board no longer has a

separate policy that only applies to the Board but has approved

the adoption of the Group policy to include all Board and senior

management appointments. The policy is in place to encourage

diversity across the Group and to ensure an inclusive culture is

in place. The Board considers the celebration of diversity and

an inclusive culture to be a competitive differentiator for the

business. The policy establishes clear values and behaviour

standards for colleagues and confirms that any form of bullying,

harassment or discrimination is unacceptable. The policy

does not include any quotas and emphasises the need for

appointments to be made on the basis of merit.

In performing its annual review, the Board also looked at

other aspects of diversity relevant to the Group. With a large

proportion of the business in the Nordics, we have a Swedish

non-executive director on the Board to enhance the Board’s

knowledge of these international markets. This non-executive

director also attends the Nordics Colleague Forum to support

colleague listening and engagement. More information on this

forum is included in the Strategic Report on page 38.

Election and re-election

At the forthcoming AGM, all directors as listed on pages 82

and 83 will present themselves for re-election other than I,

Ian Livingston, as I will step down from the Board on the date

of the AGM. Ian Dyson will present himself for election and his

biographical information is available in the Notice of AGM.

Each of the directors submitting themselves for election or

re-election is being unanimously recommended by the other

members of the Board due to their experience, knowledge,

wider management and industry experience, continued

effectiveness and commitment to their role. More information

on the individual contributions of each director is available

within their biographies.

Lord Livingston of Parkhead

Chair of the Board

6 July 2022

Nominations

Committee report continued

113

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Financial Statements

Investor Information

Strategic Report

2021/22 HIGHLIGHTS

• Agreed principles and approach for a new Group ESG

strategy.

• Integrated the international businesses into the ESG

Committee.

• Completed a review of Committee effectiveness and

implemented outcomes.

Chair’s statement

I am pleased to present the first ESG Committee (the ‘Committee’)

report for the year ended 30 April 2022. The principal role of the

Committee is to oversee the development of the Group’s Social

Purpose strategy and approve the ESG objectives required to

deliver it and the appropriate key performance indicators (KPIs’)

to monitor progress.

The Committee is comprised of the General Counsel and Company

Secretary (Committee Chair), a non-executive director of Currys

plc, the Chief People, Communications and Sustainability Officer

and the Director of Sustainable Business and ESG. The Company

Secretary, or their nominee, acts as Secretary to the Committee. The

Committee reports into the Executive Committee and provides a

verbal update after each meeting. Key activities of the Committee

are also included in the CEO report to the Currys plc Board as

appropriate. The Board receives a comprehensive update on ESG

at least once a year and received two updates during 2021/22 on

both the new Group ESG strategy and action on climate change.

A Committee effectiveness review was completed during

the year. The review found that the Committee is operating

effectively but provided useful suggestions to further enhance

the operation of the Committee. Suggestions included ensuring

that additional teams are represented at Committee meetings

and adjusting the allocation of agenda time to increase the

focus on the Nordics and Greek businesses. The Committee

has considered and implemented these suggestions.

Meetings

There were four scheduled Committee meetings during 2021/22.

Meetings are convened by the Company Secretary as required.

Representatives from the Sustainable Business, Risk, Investor

Relations, People, Health and Safety, Supply Chain and Marketing

teams are standing attendees at Committee meetings and others

are invited to attend at the discretion of the Committee Chair.

Responsibilities

The principal duties of the Committee are to:

• oversee the development of the Group’s Social Purpose

strategy, ensure it remains fit for purpose and aligned to the

Group’s vision; We Help Everyone Enjoy Amazing Technology,

and recommend it to the Board for approval;

• identify and approve the ESG objectives and KPIs required to

deliver the Group’s Social Purpose strategy and review reporting

against these at Committee meetings;

• review the ESG risk profile at each meeting to ensure that the risks

to achieving the objectives are being appropriately managed;

• monitor external developments in respect of ESG issues and

consider any implications for the Group;

• develop and maintain the Group’s policies and practices

relating to ESG matters to ensure that they remain effective,

compliant with legal and regulatory requirements and industry

standards and recommend these to the Board for approval;

• to receive specific reports from Group Responsible Sourcing

over the operation of processes and controls in place to ensure

compliance with requirements of Modern Slavery regulation;

• oversee the Group’s community, charitable and environmental

partnerships;

• to review and approve all ESG content to be published in the

Company’s annual report and accounts; and

• make any recommendations to the Executive Committee on any

area within its remit.

Key matters considered

During the year ended 30 April 2022, the Committee considered

the following key matters:

• ESG strategic approach;

• ESG emissions and e-waste bonus scorecard metrics;

• ESG risk;

• ESG communications to customers;

• ESG disclosures in the 2021/22 Annual Report and Accounts;

• responsible sourcing including the use of packaging;

• received an ISO 50001 Energy Management System

management review for UK & Ireland;

• the circular economy and Currys’ next steps on Giving Tech

Longer Life;

• community and charitable partnerships and next steps for

helping eradicate digital poverty;

• colleague well-being;

• inclusion and diversity;

• ESG horizon scanning and external developments;

• internal audit management systems, measurements and targets;

• review of Committee Terms of Reference; and

• ESG policies review.

Nigel Paterson

Chair of the ESG Committee

6 July 2022

Number of meetings

(1) Paula Coughlan joined the ESG Committee as a member on 31 January 2022.

(2) Assad Malic stepped down as a member on 31 January 2022.

Committee members Meeting attendance

Nigel Paterson (Chair) 4/4

Andrea Gisle Joosen 4/4

Paula Coughlan 1/1

(1)

Moira Thomas 4/4

Assad Malic 3/3

(2)

Environmental, Social and Governance (‘ESG’)

Committee report

114 Currys plc Annual Report & Accounts 2021/22

Remuneration Report

Introduction

On behalf of the Board, I am pleased to present the 2021/22

Directors’ Remuneration Report setting out our philosophy and

proposed policy for directors’ remuneration, together with the

activities of the Remuneration Committee (the ‘Committee’)

for the financial year ending 30 April 2022. Our Directors’

Remuneration Policy was last approved by shareholders at the

annual general meeting in 2019. This report therefore includes

details of the proposed changes that we are making to our policy

which shareholders will be able to vote on at the Annual General

Meeting on 8 September 2022. The report includes a ‘Remuneration

at a glance’ section on page 118, which also contains details of

the proposed changes to our Remuneration Policy.

In determining the executive directors’ remuneration outcomes,

the Committee had a clear focus on ensuring alignment of pay

with performance and was equally attentive to the need to take

into consideration the experience of all our key stakeholders

throughout the year.

Remuneration in context

Corporate performance

This has been another challenging year in a rapidly changing

business and economic environment, as we emerged from the

Covid-19 pandemic, saw a war in Ukraine unfold and dealt with

both supply chain disruptions and high inflation. Despite all of this,

we finished the year in a stronger shape, profits grew, shareholders

were rewarded with both a dividend and a share buyback, and

colleague and customer satisfaction continued to improve.

Strategic priorities

Key Highlights

• Strong operational and financial performance; adjusted EBIT

margins improved to 2.7% (2020/21: 2.5%).

• Record highs in colleague engagement and customer

satisfaction.

• Group store sales up +24% (UK&I +61%), higher than expected

as customers rediscovered the benefits of stores.

• International: Generated 46% of sales and 59% of adjusted

profits; entered new market with two stores in Cyprus.

• UK&I: Returned to market share growth; sustainable in-year

cost savings of £69m.

• Repaired over 1.7m pieces of tech during the year.

• Ended year with good availability and prudent stock levels.

Financial Performance

• Group LFL (3)% (Yo2Y +10%); Revenue (2)% (Yo2Y (1)%).

• Group adjusted PBT £186m including £22m of non-repeating

network debtor revaluations and settlements (2020/21: £156m).

• Group Profit before tax £126m (2020/21: £33m).

• Free cash flow £72m inc £(88)m working capital outflow

(2020/21: £438m inc £454m working capital inflow).

• Year-end net cash £44m (2020/21: £169m) with average net

cash £290m, compared to average borrowings of over £400m

two years ago.

• IAS 19 Pension liability reduced to £(257)m (2020/21: £(482)m).

• £78m returned to shareholders in dividends and buybacks,

proposed final dividend of 2.15p to take full year dividend to

3.15p, +5% YoY and remainder of buyback to be executed.

Stakeholder Experience

Our colleagues

From 1st August 2022, we plan to pay a minimum base hourly

rate of £10 to all hourly paid UK colleagues. This is above the

Real Living Wage (RLW) for colleagues outside London. The

new London rate will continue to align to the RLW rate of £11.05

per hour. This will result in an average increase of 5.2%. Almost

12,000 hourly paid frontline colleagues will benefit from the

increase. This builds on the average increase of 9% the same

colleagues received in October 2021, meaning that UK frontline

colleagues will receive on average a 14.2% increase in pay over

these two financial years.

We also responded to the national shortage of drivers and

warehouse colleagues by investing over £9m to make sure we

were competitive in attracting and retaining talent for critical

roles. We put in place additional pay initiatives including sign

on and retention awards, additional overtime and hourly pay

rates and an enhanced referral scheme.

We remain committed to emerging talent, supporting people

into employment and creating skills for life. In the UK & Ireland,

173 new apprentices started on various programmes such as

LGV driving, gas engineering and white goods engineering with

a total of 288 currently enrolled in these programmes. Elkjøp

Nordics has introduced a 12-week long ‘try-and-hire’ programme

for junior developers in our Nordics IT department.

In May 2021, we introduced our new quarterly Supply Chain

and Service Operations (SC&SO) bonus plan for over 3,000

colleagues to better align performance with the strategy and day

to day activities within SC&SO and drive the team and individual

behaviours necessary to deliver on the new strategy, We’re also

pleased to confirm that the annual performance bonus will pay

out again this year to over 2,000 of our UK & Ireland corporate

colleagues, with performance outcomes ranging between 86.4%

to 90.6% of maximum. Within our UK and Ireland stores, we have

linked the delivery of key metrics (including sales, margin, credit,

services adoption and customer satisfaction) to colleague

bonus for over 7,600 sales and support colleagues. As a result,

our colleagues received an average increase of between £0.60

and £2.60 above their hourly rate during Peak, with our top 500

sales colleagues receiving the higher amount. This positions us

well in a competitive market.

In February 2022, we saw the first vest of our award-winning

Colleague Shareholder Scheme, launched in February 2019,

and over 12,600 current colleagues in 11 countries received their

shares. We have continued to grant awards to nearly 3,000 new

participants globally throughout 2021/22.

We are also proud to show continued progress in placing well-

being at the heart of our business. We have:

• seen a 13-point increase in well-being scores through our

colleague engagement survey;

• up-skilled over 1,200 people managers as mental

health champions;

• continued to develop our ‘Well-being Corner’, which has been

accessed by 20,000 colleagues;

115

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Financial Statements

Investor Information

Strategic Report

• shared over 100 online Weekly Well-being Webinar sessions

in collaboration with our partners; and

• integrated well-being into our performance review process

to ensure managers have meaningful connections with their

teams throughout the year.

Our customers

Customer satisfaction metrics have continued to improve this

year. We have carefully reviewed customer feedback and used

it to enhance the customer experience including investment this

year in Credit and Services. Customers have returned to stores

as Covid-19 restrictions have lifted but most are shopping

online as well. We have invested in our online product range

and enhancements to the online customer journey. Customers

continue to enjoy ShopLive which has seen significant growth

this year and delivers high customer satisfaction scores.

Our shareholders

We continue to enjoy the engagement and support of our

shareholders, and this year, shareholders have benefited from a

£75m share buyback announced in November 2021 and the first

£32m of this completed before the end of the financial year. The

Board also decided to pay both an interim and full year dividend

in 2021/22. Whilst our share price has not improved as much as we

all would have liked, due to difficult external conditions including

the conflict in Ukraine and the macro-economic environment,

our net cash balance sheet combined with market leadership

and quality of operations make us confident that we can

deliver long term cashflow and value to our shareholders.

Our communities

In 2021/22 we became one of the three founding partners of

a new Digital Poverty Alliance (‘DPA’). This was supported by

an initial £1m donation from Currys which funded the first proof

of concept for the charity, by equipping 1,000 teachers and

teaching assistants in the country’s poorest communities with the

technology and support they need to deliver high-quality home

schooling to their pupils. We are delighted to confirm our ongoing

commitment to the DPA and in 2022/23 we will be using Pennies

customer donations to support vulnerable families with life

changing access to technology.

Our environment

We continue to be the largest retail recycler of technology in

the UK and ran our first financial recycling incentive scheme

‘Cash for Trash’ to collect customer e-waste. Currys and Elkjøp

continued to offer trade-in for key tech items.

In addition, as discussed below, for 2021/22, we introduced

two new environmental measures into our 2021/22 bonus plan

design, based on recycling by increasing e-waste take back and

reducing our Scope 1 and 2 emissions in our Progress to Net Zero.

These measures are reflected and deeply embedded in our

strategy, and meet the growing expectation from our colleagues,

customers and shareholders to focus on the climate agenda.

Policy review

As referred to above, our Directors’ Remuneration Policy was last

approved by shareholders at the annual general meeting in 2019.

During the year, the Committee carried out a thorough review of

the current Remuneration Policy to ensure it remains appropriate

to support the business with the delivery of its strategy. The

Committee concluded that the current policy remains overall fit

for purpose and is competitively positioned. However, we are

proposing to make a few minor changes to take into account

evolving best practice and regulatory developments.

Throughout the review process the Committee consulted with

our major shareholders and the major investor bodies. Their

feedback is reflected in our final proposals. Although there

was a mix of perspectives between our different shareholders,

in general, the balance of investors were supportive of our

approach to keep the policy largely the same aside from some

adjustments to align to evolving corporate governance best

practice. In particular, shareholders welcomed the increase in

the shareholding requirement, as set out in more detail below.

A summary of the proposed policy is shown on the following

pages and the detail is contained in this report. The main

changes are summarised below;

• Pension – formalising our existing commitment to align

executive director pension contributions to the same level

as paid to the majority of the UK workforce, and to align the

Group Chief Executive’s pension to 3% at the end of 2022.

• Incentive measure flexibility – amending the wording of

the policy in relation to the Long Term Incentive Plan (‘LTIP’)

to allow for greater future flexibility in (i) choice of measures

and (ii) weightings. This would allow changes such as the

introduction of an ESG measure in the LTIP in future. Although

the current wording allows a significant degree of flexibility

already, we commit to having no less than a 60% weighting

of financial metrics.

• Shareholding requirement:

– The in-employment shareholding requirement will increase

from 200% of salary to 250% of salary to be achieved

within five years of appointment for both the Group Chief

Executive and Chief Financial Officer. Current Executive

Directors will have five years from the date of approval

of the Policy at the 2022 AGM to meet this increased

shareholding requirement.

– The post-employment shareholding requirement –

given the increase to the in-employment shareholding

requirement, this will increase to the value of 250% of

salary which must be retained for the first year post-

cessation of employment and 125% for the second year.

It is proposed that our current Group Chief Executive and

Chief Financial Officer be covered by the requirement.

• Malus and clawback triggers – the current list of ‘trigger

points’ has been expanded to align with best practice by

adding ‘material failure of risk management and internal

controls’ and ‘unreasonable failure to protect the interests

of employees and customers’ to the current list.

• Leaver bonus provision – additional wording has been

added to the leaver provisions to ensure that a bonus will

only be paid to leavers where the Committee considers

them to be a ‘good leaver’.

116 Currys plc Annual Report & Accounts 2021/22

Remuneration Report continued

The proposed new policy as set out in this Annual Report and

Accounts will be put to shareholders for a binding vote at the

AGM on 8 September 2022. Shareholders will be asked to

approve the policy for a period of three years.

2021/22 remuneration

Base salary

The Committee reviewed Alex Baldock’s salary for 2021/22 and

applied an increase of 1.5% increasing his salary to £880,000,

effective 1 August 2021. This level of increase was below the

level of increase applied to the wider workforce. The average

increase for the UK & Ireland corporate head office population

was c 2%, effective 1 August 2021 and 2.7% for the Nordics,

effective 1 April 2021. The move to align with the RLW levels in

October 2021 gave an average increase of 9% for our hourly

paid UK colleagues.

Annual performance bonus

Annual performance bonus in respect of 2021/22 was based on

achievement of stretching targets against five metrics of EBIT (45%),

average net debt (15%), Net Promoter Score (15%), employee

engagement (15%) and a new environmental target (10%).

The Committee decided to introduce the additional

environmental focus, based on recycling by increasing e-waste

take back and reducing our Scope 1 and 2 emissions in our

Progress to Net Zero. These measures are reflected and deeply

embedded in our strategy, are the right thing to do, and meet

the growing expectation from our colleagues, customers and

shareholders to focus on the climate agenda. ESG measures

(including customer Net Promoter Score and employee

engagement) now represent 40% of the annual bonus weighting.

Bonus arrangements also included a minimum EBIT threshold

which must be achieved before any bonus can be paid out and a

potential clawback facility in relation to ‘Treating Customers Fairly’.

The formulaic outcome given the above performance was 83.8%

of maximum for the executive directors. Full details on the targets

set and performance against them can be found on page 134.

The Committee considered whether to adjust the formulaic

outcome and decided it was satisfied that the outcome is

both fair and appropriate given the financial performance

delivered and the wider stakeholder experience outlined above.

Therefore, for the avoidance of doubt, no Committee discretion

was exercised in respect of the formulaic outcome for 2021/22.

One-third of bonus payments to executive directors will be

deferred into shares for a period of two years.

LTIP

The 2019 LTIP award was subject to relative TSR (50%) and

cumulative free cash flow (50%) targets measured over three

years. Based on the achieved level of performance, the

threshold required for vesting for the TSR element was not met

but the free cash flow achieved a vesting percentage of 53%.

The cumulative cash flow achieved was £619m against a target

of £674m. Overall, LTIP vesting was therefore 26.5%.

Again, the Committee considered whether to make an adjustment

to the formulaic outcome. In the course of its deliberations the

Committee noted that the positive impact of government Covid-19

support was more than counterbalanced by the negative impact

of Covid-19 store closures. The Committee concluded that overall,

it was satisfied that the outcome was both fair and appropriate

given the cash flow performance delivered and the wider

stakeholder experience outlined above.

Vested shares will be subject to a further two-year holding period.

Full details on the targets set and performance against them can

be found on pages 137 and 138.

Executive director changes

Jonny Mason, the previous Group Chief Financial Officer, left the

business on 9 July 2021 and Bruce Marsh was appointed as Group

Chief Financial Officer with effect from 12 July 2021. Jonny’s

termination package and Bruce’s remuneration arrangements were

made in line with our shareholder-approved Remuneration Policy.

Further details of Jonny’s termination arrangements are set out on

pages 142 and 143 and Bruce’s remuneration details (including the

award to be made in compensation for incentives forfeited from

his previous employer) are set out on page 142.

2022/23 remuneration

Subject to shareholder approval at the AGM in September

2022, the Remuneration Policy arrangements for 2022/23 will

be implemented in line with the new policy.

Base salary

The Committee reviewed both Alex Baldock’s and Bruce Marsh’s

salary as at 30 April 2022 and applied an increase of 3% taking

their salaries to £906,400 and £427,450 respectively, effective

1 August 2022. The average increase for the UK & Ireland corporate

head office population is c 3%, effective 1 August 2022 and

3.7% for the Nordics, effective 1 April 2022. From 1 August 2022, a

minimum base hourly rate of £10 will be paid to all hourly paid UK

colleagues. This is above the RLW for colleagues outside London.

The new London rate will continue to align to the RLW rate of

£11.05 per hour. This will result in an average increase of 5.2% for

our hourly paid UK colleagues.

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Strategic Report

Pension

Bruce Marsh receives a 3% pension allowance, in line with the

wider workforce and Alex Baldock continues to receive a 10%

pension allowance. The Committee confirms that Alex Baldock’s

allowance will be reduced and aligned with the majority of the

UK wider workforce at the end of 2022.

Annual performance bonus

Following the introduction of the additional environmental

targets last year, the Committee has decided to maintain the

current bonus structure, ensuring that ESG measures continue

to represent 40% of the annual bonus weighting, reflecting

the core elements of our strategy.

LTIP

As in prior years, 2022/23 LTIP awards will be subject to two

equally weighted performance conditions. Half of the awards

will be subject to the achievement of a relative TSR performance

condition and the remaining half of the awards will be subject to

the achievement of a cumulative free cash flow target. However,

following a review of the TSR peer group element of the awards

the Committee has decided to change the TSR peer group

from the bespoke retail sector group used in prior years to the

constituents of the FTSE 250 index. The new peer group provides

more appropriate alignment with our shareholder base, given

differing investor views on who the relevant peers are and more

relevance in terms of similarity of external factors including the

nature of business/sector, share price correlation and volatility.

In addition, the Committee considered introducing an

environmental metric into the 2022/23 LTIP design. As an

environmental measure has already been added to the bonus

design, the Committee decided not to include this for the current

year but commits to including an ESG metric(s) in the LTIP during

the course of the new policy duration.

The Committee is mindful of the current volatility in the market

and ensuring LTIP awards are aligned with shareholder

experience. As at the date of this report, the Committee has not

yet finalised the decisions on LTIP award levels (within the Policy

limits) or the calibration of applicable free cash flow targets.

We will confirm the conditions and make the awards after we

have announced our annual results, to ensure that we have

targets in place that are both stretching for participants and

also fully reflective of how shareholders and the market view the

long-term performance of the business. We will fully disclose the

award details and targets at the time of the grant announcement

and also include them in next year’s Remuneration Report.

Chair and non-executive director fees

As announced in May 2022, we are pleased to confirm the

appointment of Ian Dyson to succeed Ian Livingston as Chair

of the Board. Ian Dyson will join the Board as a non-executive

director on 1 September 2022 and will become Chair of the

Board and Nominations Committee following the AGM on

8 September 2022, with Ian Livingston stepping down from

the Board on that date. There will be no change to the annual

Chair of the Board’s fee, remaining at £300,000.

In addition, although not a matter for the Remuneration

Committee (being a matter reserved for the Board), the Board

carried out a review of the non-executive directors’ fees. As a

result of that review the Board decided to increase fee levels

for the non-executive directors by 2%, effective 1 May 2022,

as detailed on page 147. This is the first increase in fees to

the non-executive directors since the merger of Dixons and

Carphone in 2014. The Chair and I, as Deputy Chair, waived the

increase to our fees, and these remain unchanged.

I hope you find that this report clearly explains the remuneration

approach we have taken and how we will implement the

policy in 2022/23. We have sought to ensure that a balanced

approach has been taken for all stakeholders based on their

experiences during the year. As always, we would welcome

any feedback or comments on this report. We look forward to

your continued engagement and thank you for the feedback

provided to date.

Tony DeNunzio CBE

Chair of the Remuneration Committee

6 July 2022

118 Currys plc Annual Report & Accounts 2021/22

Remuneration Report continued

Remuneration at a glance

2021/22 2022/23 proposed

BASE SALARY

• CEO (Alex Baldock) – £880,000

• CFO (Bruce Marsh) – £415,400

• CEO (Alex Baldock) – £906,400

• CFO (Bruce Marsh) – £427,500

ANNUAL

PERFORMANCE

BONUS

Maximum

opportunity

• 150% of base salary

• One-third deferred into shares for a

period of two years

• 150% of base salary

• One-third deferred into shares for

a period of two years

Performance

metrics

(weighting)

• EB IT (4 5%)

• Average net debt (15%)

• ESG (4 0%)

– Net Promoter Score (15%)

– Employee engagement (15%)

– Environmental (10%)

– E-waste take back volumes

(5%); and

– Progress to Net Zero (5%)

• EBIT underpin and ‘Treating Customers

Fairly’ clawback

• EB IT (4 5%)

• Average net debt (15%)

• ESG (4 0%)

– Net Promoter Score (15%)

– Employee engagement (15%)

– Environmental (10%)

– E-waste take back volumes

(5%); and

– Progress to Net Zero (5%)

• EBIT underpin and ‘Treating Customers

Fairly’ clawback

LTIP

Maximum

opportunity

• 250% of base salary • 250% of base salary

Performance

metrics

(weighting)

• TSR relative to a bespoke group of UK

and European retailers (50%)

• Cumulative free cash flow (50%)

• TSR relative to the FTSE 250 (50%)

• Cumulative free cash flow (50%)

SHARE OWNERSHIP

GUIDELINES

• 200% of salary to be achieved

within five years of appointment

• For new appointments, shares to

the value of 200% of salary

must be retained for the first-year

post-cessation and 100% for the

second year

• 250% of salary to be achieved within

five years of appointment

• Shares to the value of 250% of salary

must be retained for the first year

post-cessation and 125% for the

second year

Total remuneration earned in the year

The chart below reflects the on-target and actual remuneration outcomes for 2021/22.

Fixed pay

Alex Baldock

On-target Actual

Bruce Marsh

On-target Actual

Annual bonus

LTIP

Buyout award

£3,024

£2,611

£1,385

£1,458

£4,000

£3,000

£2,000

£1,000

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Introduction

The purpose of this report is to inform shareholders of the

directors’ remuneration for the year ended 30 April 2022

and the proposed Remuneration Policy to be followed for

the next three years.

This report is divided into two sections:

• the Remuneration Policy; and

• the Annual Remuneration Report.

The current Remuneration Policy was approved

by shareholders at the annual general meeting on

5 September 2019 and was effective from that date.

Following several proposed changes to the policy, a new

authority will be sought from shareholders in a binding vote

at the Annual General Meeting on 8 September 2022 and

the new policy will be effective from that date. The Annual

Remuneration Report will be put to an advisory vote at the

2022 AGM.

The role of the Committee is to determine on behalf of

the Board a remuneration policy for executive directors

and senior management which promotes the long-term

success of the business through the attraction and

retention of executives who have the ability, experience

and dedication to deliver outstanding returns for our

shareholders.

The Committee has adopted the principles of good

governance relating to directors’ remuneration as enshrined

in section 5 of the UK Corporate Governance Code 2018

(the ‘Code’) and has paid close regard to the principles

of clarity, transparency, risk management, proportionality

and alignment to culture and strategy. The Committee has

complied with those principles in the year under review.

These reports have been prepared by the Committee on

behalf of the Board in accordance with the Companies

Act 2006, Schedule 8 to the Large and Medium-

sized Companies and Groups (Accounts and Reports)

Regulations 2008 (as amended) and the Listing Rules

of the Financial Conduct Authority. The Remuneration

Policy (which is not subject to audit) details the role of

the Committee, the principles of remuneration and other

matters. The Annual Remuneration Report (elements

of which are audited) details the directors’ and former

directors’ fixed and variable pay, share awards, share

options and pension arrangements.

Remuneration Policy

Remuneration strategy

Put simply, our aim is to generate superior returns for our

shareholders and the key to achieving this is our colleagues.

Our remuneration strategy is therefore designed to motivate

high-performing colleagues to deliver our business strategy.

The objectives of our remuneration strategy are to:

• attract, motivate and retain high-quality talent;

• be transparent and align the interests of senior management

and executive directors with those of shareholders, by

encouraging management to have a significant personal stake

in the long-term success of the business;

• weight remuneration to variable pay so that it incentivises

outperformance particularly over the long term whilst

discouraging inappropriate risk-taking;

• ensure that superior rewards are only paid for exceptional

performance against challenging targets;

• apply policies consistently across the Group to promote

alignment and teamwork;

• recognise the importance of delivering across a balanced set

of metrics to ensure the right behaviours are adopted and the

long-term health of the business is protected; and

• avoid rewarding failure.

In developing its policy, the Committee has regard to:

• the performance, roles and responsibilities of each executive

director or member of senior management;

• the remuneration arrangements and policy which apply below

senior management levels, including average base salary

increases across the workforce;

• information and surveys from internal and independent sources;

• the economic environment and financial performance of the

Company; and

• good corporate governance practice.

For reference, our workforce is comprised of full-time and part-

time colleagues and fixed term contractors that are directly

employed by the Group. Our workforce is supported by people

employed by third parties that use Currys’ IT systems and work

on Currys’ premises but are not directly employed by the Group.

Guidelines on responsible investment disclosure

In line with the Investment Association guidelines on responsible

investment disclosure, the Committee is satisfied that the

incentive structure and targets for executive directors do

not raise any environmental, social or governance risks by

inadvertently motivating irresponsible or reckless behaviour.

The Committee considers that no element of the remuneration

package will encourage inappropriate risk-taking by any

member of senior management.

120 Currys plc Annual Report & Accounts 2021/22

Remuneration Report continued

Remuneration Policy table

The individual elements of the remuneration packages offered to executive directors are summarised in the following table:

Base salary (fixed pay)

Purpose and link to strategy To aid the recruitment, retention and motivation of high-performing colleagues.

To reflect their skills, experience and importance to the business.

Operation Normally reviewed annually.

The review reflects a range of factors including merit levels, internal relativity, external market data

and cost. Our overall policy, having due regard to the factors noted, is normally to target salaries

at market level taking into consideration FTSE 51-150 and retailers of a similar size.

Salaries for new appointments as executive directors will be set in accordance with the

Recruitment Policy set out on pages 127 and 128.

The Committee takes into consideration the impact of base salary increases on the package

as a whole, as other elements of pay (such as pension contributions) are generally based on

a percentage of salary.

Maximum opportunity Ordinarily, increases for executive directors will be in line with increases across the Group.

Increases beyond those granted across the Group may be awarded in certain circumstances,

such as changes in responsibilities, progression in the role and significant increases in the size,

complexity or value of the Group.

Salary levels for current directors are shown in the Annual Remuneration Report.

Performance assessment/

targets

Salaries are normally reviewed annually by the Committee at the appropriate meeting having

due regard to the individual’s experience, performance and added value to the business.

Changes from previous policy None.

Benefits (fixed pay)

Purpose and link to strategy In line with the Company’s strategy to keep remuneration weighted to variable pay that incentivises

outperformance, a modest range of benefits is provided.

Benefits may vary based on the personal choices of a director.

Provision of relocation or other related assistance may be provided to support the appointment

or relocation of a director.

Operation Executive directors are entitled to a combination of benefits which include, but are not limited to:

• car allowance or the use of a driver for company business;

• private medical cover;

• life assurance;

• holiday and sick pay; and

• a range of voluntary benefits including the purchase of additional holiday.

Executive directors will be eligible for other benefits which are introduced for the wider workforce

on broadly similar terms.

Any reasonable business-related expenses (including the tax thereon) can be reimbursed if

determined to be a taxable benefit.

Should an executive director be recruited from, or be based in, a non-UK location, benefits may

be determined by those typically provided in the normal country of residence and/or reflect

local market legislation.

Relocation or other related assistance could include, but is not limited to, removal and other

relocation costs, tax equalisation, tax advice and accommodation costs.

Maximum opportunity The cost to the Group of providing such benefits will vary from year to year in accordance with

the cost of providing such benefits, which is kept under regular review.

Performance assessment/

targets

Not applicable.

Changes from previous policy None.

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Pension (fixed pay)

Purpose and link to strategy A pension is provided which is consistent with that provided to other corporate employees in the

UK and in line with our strategy to keep remuneration weighted to variable pay that incentivises

outperformance.

Operation Defined contribution plans are offered to all employees. A defined benefit pension plan continues

in operation for Dixons’ longer-serving employees, which is now closed to new participants and

future accrual.

Executive directors may choose to receive a cash allowance in lieu of pension contributions.

Maximum opportunity Executive directors will receive a pension contribution in line with the level paid to the majority of

the UK workforce across the Group, up to 10% of base salary, which can be taken in whole or in

part as a cash allowance in lieu of pension.

Performance assessment/

targets

Not applicable.

Changes from previous policy Formalising our existing commitment to align the level of executive director pension

contributions with those of the wider workforce.

Annual performance bonus (variable pay)

Purpose and link to strategy Annual performance bonuses are in place to incentivise the delivery of stretching, near-term

business targets based on our business strategy.

These bonuses provide a strong link between reward and performance and drive the creation

of further shareholder value.

The principles and approach are consistently applied across the Group ensuring alignment to

a common vision and strategy.

They are based on a balanced approach ensuring appropriate behaviours are adopted and

encouraging a longer-term focus.

Operation Bonus payments are determined after the year end and subject to a minimum profit threshold

being achieved before payment is due.

For threshold level of performance, a bonus of up to 20% of the maximum potential award is

payable. A sliding scale determines payment between the minimum and maximum bonus payable.

The annual bonus is typically determined in June based on the audited performance over the

previous financial year.

One-third of any bonus earned will be deferred into shares for a period of two years, with the

remaining two-thirds paid in cash. Any bonus earned is non-pensionable. Where any bonus is

deferred, dividends (or equivalents) may accrue.

Performance is reviewed by the Committee using its judgement where necessary to assess

the achievement of targets. The Committee retains the discretion to adjust downwards bonus

payments where achievement of targets would result in a payment of a bonus at a level which

would not be consistent with the interests of the Company and its shareholders.

Recovery and withholding provisions apply for material misstatement, misconduct, calculation

error, reputational damage, corporate failure, material failure of risk management and internal

controls and unreasonable failure to protect the interests of employees and customers, enabling

performance adjustments and/or recovery of sums already paid. These provisions will apply for

up to three years after payment.

Maximum opportunity Maximum annual bonus potential for all executive directors is 150% of base salary.

No bonus is payable if the minimum profit threshold is not achieved.

122 Currys plc Annual Report & Accounts 2021/22

Performance assessment/

targets

All measures and targets are reviewed and set by the Committee at the beginning of the financial

year with a view to supporting the achievement of the Group strategy.

The bonus scheme has targets based on a balanced scorecard. The balanced scorecard may

include both financial and non-financial measures, such as employee, customer and strategic

measures. The weighting of measures will be determined by the Committee each year. Financial

measures (such as profit and cash) will represent the majority of the bonus opportunity, with other

measures representing the balance.

Changes from previous policy The current list of malus and clawback trigger points in the Operation section has been

expanded to include ‘material failure of risk management and internal controls’ and

‘unreasonable failure to protect the interests of employees and customers’, to align with

best practice.

Long-term incentive scheme (variable pay): Long Term Incentive Plan (‘LTIP’)

Purpose and link to strategy Long-term incentive schemes are transparent and demonstrably aligned with the interests of

shareholders over the long term.

The LTIP is designed to reward and retain executives over the longer term, whilst aligning an

individual’s interests with those of shareholders and in turn delivering significant shareholder value.

Operation Discretionary awards of nil-priced options or conditional share awards are granted over

Currys plc shares.

Awards will be granted annually and will usually vest after three years subject to continued

service and the achievement of performance conditions.

The level of vesting is dependent on achievement of performance targets, usually over

a three-year period. No more than 25% of the maximum will be payable for threshold level

of performance.

The post-tax number of share awards vesting will be subject to a further two-year holding

period, during which they cannot be sold, unless in exceptional circumstances and with the

Committee’s permission.

Dividend equivalents may be accrued on the shares earned from any award.

Awards will be subject to recovery and withholding provisions for material misstatement,

misconduct, calculation error, reputational damage and corporate failure, material failure of risk

management and internal controls and unreasonable failure to protect the interests of employees

and customers, enabling performance adjustments and/or recovery of sums already paid. These

provisions will apply for up to three years after vesting.

If employment ceases during the vesting period, awards will ordinarily lapse in full, unless the

Committee exercises its discretion.

The Committee has the discretion in certain circumstances to grant and/or settle an award in cash.

For the executive directors this would only be used in exceptional circumstances.

In the event of a change of control, any unvested awards will vest immediately, subject to

satisfaction of performance conditions and reduction on a time-apportioned basis.

Maximum opportunity Grants under the LTIP are subject to overall dilution limits.

The normal maximum grant per participant in any financial year will be a market value of 250%

of base salary, with up to 375% in exceptional circumstances, e.g. recruitment.

More details on the proposed award levels for executive directors in 2022/23 are set out in the

Annual Remuneration Report on page 146 and full details will be disclosed at grant.

Remuneration Report continued

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Performance assessment/

targets

Performance targets are reviewed by the Committee prior to each grant and are set to reflect the

key priorities of the business at that time.

The Committee determines the metrics from a range of measures, including but not limited to,

market-based performance measures such as TSR and financial metrics such as free cash flow. The

Committee retains the flexibility to introduce new measures in the future if considered appropriate

given the business context, although financial measures in total will not be weighted any less than

60% of the total award. Material changes will be subject to consultation with major shareholders.

The actual metrics applying for each award will be set out in the Annual Remuneration Report

and any changes in the metrics will be explained.

Changes from previous policy The current list of malus and clawback trigger points in the Operation section has been

expanded to include ‘material failure of risk management and internal controls’ and

‘unreasonable failure to protect the interests of employees and customers’, to align with

best practice.

The wording of the Performance assessment/targets section has been amended to allow

for greater future flexibility in (i) choice of measures and (ii) weightings, and states our

commitment to have no less than a 60% weighting in financial metrics.

All employee share plans

Purpose and link to strategy Encourages employees to make a long-term investment in the Company’s shares and therefore

be aligned to the long-term success of the Company.

Operation Executive directors are eligible to participate in the Group all-employee share schemes, but not

the Colleague Shareholder Scheme, on the same terms as other eligible employees.

Maximum opportunity The same limits apply to executive directors as to all other participants in the schemes and are

in line with the appropriate regulations.

The Committee reserves the right to increase the savings limits for future schemes in accordance

with the statutory limits in place from time to time.

Performance assessment/

targets

None of the schemes are subject to any performance conditions.

Changes from previous policy None.

Share ownership guidelines

Purpose and link to strategy Provides close alignment between the longer-term interests of executive directors and

shareholders in terms of the Company’s long-term success.

Operation The Company requires executive directors to retain a certain percentage of base salary in the

Company’s shares, with a five-year period in which to reach these limits. Executive directors are

also required to retain a proportion of these shares post the cessation of employment.

The shares which count towards this requirement are beneficially owned shares (both directly

and indirectly).

Maximum opportunity Not applicable.

Performance assessment/

targets

The Company requires all executive directors to retain 250% of base salary in the Company’s

shares during employment. On leaving, an executive director will also be required to retain shares

equivalent to 250% of their base salary on leaving for a period of 12 months and then 125% of

their base salary for a further period of 12 months.

Changes from previous policy Increasing the in-employment shareholding requirement from 200% of salary to 250%

of salary; and

Increasing the post-employment shareholding requirement from 200% to 250% for the

first year post-cessation and 125% for the second year.

Current Executive Directors will have five years from the date of approval of the Policy

at the 2022 AGM to meet the increased shareholding requirements.

Our current CEO will be covered by the requirement as well as the CFO.

Details of the Directors’ shareholding are shown in the table on page 145.

124 Currys plc Annual Report & Accounts 2021/22

Remuneration Report continued

Non-executive directors and chair of the Board/deputy chair fees

Purpose and link to strategy To provide a competitive fee for the performance of non-executive director duties, sufficient

to attract high-calibre individuals to the role.

Operation The fees are set to align with the duties undertaken, taking into account market rates, and are

normally reviewed on an annual basis. Factors taken into consideration include the expected time

commitment and specific experience.

Additional fees are payable for acting as the senior independent director or as chair of any

Board committee, and for membership of a Board Committee.

Non-executive directors do not participate in the Annual performance bonus or the long-term

incentive plans or pension arrangements.

Any reasonable business-related expenses (including the tax thereon) can be reimbursed if

determined to be a taxable benefit.

For material, unexpected increases in time commitments, the Board may pay extra fees on a pro-

rated basis to reflect additional workload.

Maximum opportunity Aggregate annual limit of £2,000,000 imposed by the Articles of Association for Directors’ fees

(not including fees in relation to any executive office or chair of the Board, deputy chair, senior

independent director or committee chair fees).

Performance assessment/

targets

Not applicable.

Changes from previous policy None.

Selection of performance metrics

The policy provides flexibility for the Committee to determine the measures to be used in the Annual performance bonus and the

LTIP. The measures used currently, and their purposes are set out below.

Measure Where used Purpose

EBIT Annual performance bonus Key measure of annual financial delivery

Average net debt Annual performance bonus Focus on the business’s cash position

Net Promoter Score Annual performance bonus Captures the overall perception of our business in the eyes of

our customers

Employee engagement Annual performance bonus Reflects how well we engage our colleagues – a factor which

we know to be a key driver of retention and performance

Environmental Annual performance bonus Reflects our focus on the climate agenda

Cumulative free cash flow LTIP A principal measure of the financial health of the business

including the management of working capital, captured over

a multiyear period

Relative TSR LTIP Seeks to measure the growth in shareholders’ investment in Currys

(share price movements plus dividends paid) relative to other

similar companies

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Illustration of Remuneration Policy

The Remuneration Policy scenario chart below illustrates the level and mix of potential total remuneration the ongoing executive

directors could receive under the Remuneration Policy at three levels of performance: minimum, target and maximum.

Remuneration Policy scenario chart

(1) Fixed pay is based on the base salary payable at 1 August 2022, taxable benefits and pension contributions.

(2) Annual variable pay represents the annual performance bonus entitlement. No bonus is assumed at the minimum performance level. Target performance assumes

a payment of 90% of salary (i.e. 60% of maximum) and at maximum performance a payment of 150% of base salary.

(3) Long-term incentives relate to the LTIP. No awards vest at the minimum performance level. Target performance assumes a vesting of 137.5% of salary (i.e. 55% of

maximum award) and maximum performance vesting of 250% of salary.

(4) The chart above does not take into account the impact of share price appreciation, other than the fourth bar, which assumes a growth in the share price of 50% over

the vesting period for LTIP and Deferred Share Bonus Plan awards.

Alignment of the Remuneration Policy to the UK Corporate Governance Code 2018

The table below explains how the Remuneration Committee has addressed the factors set out in Provision 40 of the Code when

determining the Remuneration Policy.

Clarity Remuneration arrangements

should be transparent

and promote effective

engagement with shareholders

and the workforce.

The Remuneration Committee has aimed to incorporate simplicity and

transparency into the design and delivery of our Remuneration Policy.

The remuneration structure is simple to understand for both participants

and shareholders and is aligned to the strategic priorities of the business.

We aim for disclosure of the policy and how it is implemented to be in a

clear and succinct format.

Simplicity Remuneration structures should

avoid complexity and their

rationale and operation should

be easy to understand.

Our remuneration arrangements for executive directors are purposefully

simple, comprising fixed pay (salary, benefits, pension/pension allowance),

a short-term incentive plan (annual performance bonus) and a long-term

incentive plan (LTIP).

£7,000

£6,000

£5,000

£4,000

£3,000

£2,000

£1,000

Remuneration (£000s)

Alex Baldock

Minimum Target Maximum Maximum + 50%

share price growth

Minimum Target Maximum Maximum + 50%

share price growth

£1,072

£3,134

£4,698

£6,057

£451

£1,424

£2,161

£2,802

Bruce Marsh

Fixed pay

Annual bonus

Long-term incentives

126 Currys plc Annual Report & Accounts 2021/22

Remuneration Report continued

Risk Remuneration arrangements

should ensure reputational

and other risks from excessive

rewards, and behavioural

risks that can arise from

target-based incentive plans,

are identified and mitigated.

The Remuneration Policy includes a number of points to mitigate potential risks:

• There are defined limits on the maximum opportunity levels under

incentive plans.

• Performance targets are calibrated at appropriately stretching but

sustainable levels.

• The Remuneration Committee considers formulaic incentive outcomes

and determines whether to make any adjustments, including to take into

account the experience of wider stakeholders such as employees and

shareholders.

• Incentive plans include provisions to allow malus and clawback to be

applied, where appropriate.

• The use of bonus deferral, LTIP holding periods, in-employment and

post-employment shareholding requirements ensure that there is an

alignment of interests between executive directors and shareholders

and encourage sustainable performance.

Predictability The range of possible values

of rewards to individual

directors and any other limits or

discretions should be identified

and explained at the time of

approving the policy.

We aim for our disclosure to be clear to allow shareholders to understand

the range of potential values which may be earned under the remuneration

arrangements. Our Remuneration Policy clearly sets out relevant limits and

potential for discretion.

Proportionality The link between individual

awards, the delivery of strategy

and the long-term performance

of the company should be

clear. Outcomes should not

reward poor performance.

A significant part of an executive’s reward is linked to performance with

a clear line of sight between business performance and the delivery of

shareholder value. The Remuneration Committee may adjust formulaic

outcomes of incentive arrangements if they do not appropriately align

with performance achieved or the experience of wider stakeholders

such as employees and shareholders.

Alignment to culture Incentive schemes should drive

behaviours consistent with

company purpose, values

and strategy.

The incentive arrangements and the performance measures used are

strongly aligned to those that the Board considers when determining the

success of the implementation of the Company’s purpose, values and

strategy. Please see our Strategic Report for an explanation of our strategy

and key performance Indicators.

Remuneration Committee discretions

The Committee operates the Annual performance bonus plan, LTIP

and all-employee plans in accordance with their respective rules,

the Listing Rules and HMRC rules (or overseas equivalent) where

relevant. The Committee retains discretion, consistent with market

practice, over a number of areas relating to the operation and

administration of these plans. These include but are not limited to:

• entitlement to participate in the plan;

• when awards or payments are to be made;

• size of award and/or payment (within the rules of the plans

and the approved policy);

• determination of a good leaver for incentive plan purposes and

the appropriate treatment based on the rules of each plan;

• discretion as to the measurement of performance conditions

and pro-rating in the event of a change of control;

• any adjustment to awards or performance conditions for

significant events or exceptional circumstances; and

• the application of recovery and withholding provisions.

Shareholder consultation

The Committee has a policy to consult with its major shareholders

when making any significant changes to the Remuneration Policy of

the Company. Any feedback received is taken into consideration

when determining future policy. The Committee also takes into

consideration remuneration guidance issued by leading investor

bodies, in addition to the principles of good governance relating

to directors’ remuneration as set out in the Code.

The review of the Remuneration Policy during the year included

consultation with several of the Company’s major shareholders

and the leading investor bodies. The Committee explained

the proposed approach to the 2022 Remuneration Policy and

sought shareholder views. The Committee received constructive

feedback and consulted further in respect of some of the

feedback received. Although there was a mix of perspectives

between our different shareholders, in general, the balance of

investors were supportive of our approach to keep the policy

largely the same aside from some adjustments to align to

evolving corporate governance best practice.

The consensus of feedback is reflected in the Remuneration

Policy to be submitted to shareholders for approval in 2022.

Employee engagement and consultation

When considering remuneration arrangements for executive

directors, the Committee takes into account, as a matter of

course, the pay and conditions of colleagues at all levels

throughout the Company, to ensure appropriate alignment.

The Committee receives regular updates regarding any major

changes to colleague remuneration during the year and also

reviews information on internal measures, including details of

our gender pay gap and the ratio of the Group Chief Executive

remuneration to UK colleague remuneration and considers how

these compare externally and change over time. The Committee

is also kept informed of general employment conditions across

the Group, including the annual pay review outcomes.

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The Company communicates regularly with colleagues by

way of email updates, live Q&A sessions and intranet posts to

provide information about our strategy, our performance and

on operational matters as well as asking for feedback from

colleagues via regular employee surveys.

The Committee and the Board places great importance on

listening to the views of our colleagues on a range of issues

including pay and benefits, and the International Colleague

Forum is in place to unify country forums into a single listening

and engagement forum for colleagues. Tony DeNunzio, the

Remuneration Committee Chair, attends UK forum meetings with

the Chief People Officer and Andrea Gisle Joosen, Independent

Non-Executive Director and Remuneration Committee member,

attends the Nordics Colleague Forum meetings. Attendance at

these forums provides a welcomed opportunity to directly engage

with the wider workforce and to bring colleagues’ views to both the

Committee and Board discussions. Colleague feedback from this

forum has been used to develop the Company culture and values

and resulted in a range of initiatives including, for example, the

establishment of colleague mental health first aiders.

Many of our colleagues are also shareholders and as such

are able to attend annual general meetings, vote on all of the

resolutions and share their views on the policy in the same way

as other shareholders. In the coming year, we intend to use the

colleague forums mentioned above to hold a session on how

executive remuneration aligns with wider Company pay policy.

Remuneration policy for the wider workforce

Currys employs a large number of colleagues across different

countries. Our reward framework is structured to suit the needs

of the different businesses, employee groups and locations.

Reward packages differ for a variety of reasons including the

impact on the business, local practice, custom and legislation.

For management, the current bonus and LTIP structure cascades

down to around 200 managers ensuring management are

focused on delivering on strategic objectives and are aligned

to overall shareholders’ experience.

In determining salary increases to apply across the wider

workforce, the Company takes into consideration Company

performance and other market metrics as necessary. When

determining salary increases for executive directors, the

Committee takes into consideration salary increases throughout

the Company as a whole.

The Company actively encourages wide employee share

ownership. The Colleague Shareholder Scheme has provided the

opportunity for all colleagues, subject to eligibility criteria, to

become shareholders in the Company. In addition, the Group’s

UK employees, who meet the eligibility criteria, are invited to join

the Company’s UK-approved SAYE scheme.

Discretionary share plans are also extended to both senior

management and other key members of the workforce, as the

Company feels that it is important to incentivise and retain these

employees over the longer-term in order for the Company to

continue to grow.

Recruitment or promotion policy

On appointment or promotion, base salary levels will be set

taking into account a range of factors including market levels,

experience, internal relativities and cost. If an individual

is appointed on a base salary below the desired market

positioning, the Committee retains the discretion to realign the

base salary over one to three years, contingent on individual

performance, which may result in a higher rate of annualised

increase above ordinary levels. If the Committee intends to rely

on this discretion, it will be noted in the first Remuneration Report

following an individual’s appointment. Other elements of

annual remuneration will be in line with the policy set out in the

Remuneration Policy table. As such, variable remuneration will

be capped as set out in the Remuneration Policy table.

The following exceptions will apply:

• in the event that an internal appointment is made or an

executive director joins as a result of a transfer of an

undertaking, merger, reconstruction or similar reorganisation,

the Committee retains the discretion to continue with existing

remuneration provisions and the provision of benefits. This

discretion will not be used in respect of pension contributions

in excess of the Committee’s commitment to ensure that any

newly appointed executive director will receive a pension

contribution in line with the level paid to the majority of the

UK workforce across the Group;

• as deemed necessary and appropriate to secure an

appointment, the Committee retains the discretion to make

additional payments linked to relocation (including any tax

thereon);

• for an overseas appointment, the Committee will have

discretion to offer cost-effective benefits and pension

provisions which reflect local market practice and relevant

legislation;

• the Committee may set alternative performance conditions for

the remainder of the initial annual bonus performance period,

taking into account the circumstances and timing of the

appointment; and

• the Committee retains the discretion to provide an immediate

interest in Company performance by making a long-term incentive

award on recruitment (or shortly thereafter if in a prohibited

period) in accordance with the Remuneration Policy Table under

its existing long-term incentive schemes or such future schemes

as may be introduced by the Company with the approval of its

shareholders. The Committee will determine, at the time of award,

the level of the award, the performance conditions and time

horizon that would apply to such awards, taking into account

the strategy and business circumstances of the Company.

Service contracts will be entered into on terms similar to those

for the existing executive directors, summarised in the recruitment

table below. However, the Committee may authorise the

payment of a relocation and/or repatriation allowance, as well

as other associated international mobility terms and benefits,

such as tax equalisation and tax advice.

In addition to the annual remuneration elements noted above,

the Committee may consider buying out, on a like-for-like basis,

bonuses and/or incentive awards that an individual forfeits

from a previous employer in accepting the appointment.

128 Currys plc Annual Report & Accounts 2021/22

Remuneration Report continued

The Committee will have the authority to rely on Listing Rule 9.4.2(2)

or exceptional limits of awards of up to 375% of base salary within

the LTIP. If made, the Committee will be informed by the structure,

time horizons, value and performance targets associated with

any forfeited awards, while retaining the discretion to make any

payment or award deemed necessary and appropriate. The

Committee may also require the appointee to purchase shares in

the Company in accordance with its shareholding policy.

With respect to the appointment of a new chair of the Board or

non-executive director, terms of appointment will be consistent

with those currently adopted. Variable pay will not be considered

and as such no maximum applies. With respect to non-executive

directors, fees will be consistent with the policy in place at the

time of appointment. If necessary, to secure the appointment of

a new chair of the Board not based in the UK, payments relating

to relocation and/or housing may be considered.

Elements of remuneration on appointment are set out in the

recruitment table below.

A timely announcement with respect to any director’s

appointment and remuneration will be made to the regulatory

news services and posted on the Company’s corporate website.

Recruitment table for executive directors

Area Feature Policy

Service contract

and incentive plan

provisions

• Notice period

• Entitlements on termination

• Restrictive covenants

• Variable elements

• Up to 12 months from either side.

• As summarised in the policy on loss of office.

• Provisions for mitigation and payment in lieu of notice.

• Garden leave provisions.

• Non-compete, non-solicitation, non-dealing and confidentiality provisions.

• The Committee has the discretion to determine whether an individual shall

participate in any incentive in the year of appointment.

• The Committee shall have the discretion to determine appropriate bonus

performance targets if participating in the year of appointment.

Annual remuneration Base salary • To be determined on appointment, taking into account factors including

market levels, experience, internal relativities and cost.

Salary progression • If appointed at below market levels, salary may be realigned over the

subsequent one to three years subject to performance in role. In this

situation, the Committee reserves the discretion to make increases above

ordinary levels.

• This initial market positioning and intention to increase pay above the

standard rate of increase in the Remuneration Policy table (subject to

performance) will be disclosed in the first Remuneration Report following

appointment.

Benefits and allowances • The Committee retains the discretion to provide additional benefits

as reasonably required. These may include, but are not restricted to,

relocation payments, housing allowances and cost of living allowances

(including any tax thereon).

Policy on loss of office

Service contracts contain neither liquidated damages nor a

change of control clause.

The Company shall have a right to make a payment in lieu of

notice in respect of base salary and benefits, including car

allowance and pension contributions, only for the director’s

contractual period of notice or, if termination is part way through

the notice period, the amount relating to any unexpired notice

to the date of termination. There is an obligation on directors to

mitigate any loss which they may suffer if the Company terminates

their service contract. The Committee will take such mitigation

obligation into account when determining the amount and timing

of any compensation payable to any departing director.

A director shall also be entitled to a payment in respect of

accrued but untaken holiday and any statutory entitlements

on termination. No compensation is paid for dismissal, save

for statutory entitlements.

A director shall be entitled to receive a redundancy payment

in circumstances where, in the judgement of the Committee, they

satisfy the statutory tests governing redundancy payments. Any

redundancy payment shall be calculated by reference to the

redundancy payment policy in force for all employees in the

relevant country at the time of the redundancy and may include

modest outplacement costs.

If a director’s employment terminates prior to the relevant Annual

performance bonus payment date, ordinarily no bonus is payable

for that financial year. The Committee shall retain discretion to

make a pro-rated bonus payment in circumstances where the

Committee considers them to be a ‘good leaver’ and it would

be appropriate to do so having regard to the contribution of

the director during the financial year, the circumstances of the

departure and the best interests of the Company.

129

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Strategic Report

Any entitlements under long-term incentive schemes operated

by the Company shall be determined based on the rules of the

relevant scheme. The default position of the LTIP is that awards will

lapse on termination of employment, except where certain good

leaver circumstances exist (e.g. death, ill-health, injury, disability,

redundancy, transfer of an undertaking outside of the Group or

retirement, or any other circumstances at the Committee’s discretion)

whereby the awards may vest on cessation, or the normal vesting

date, in both cases subject to performance and time pro-rating.

Although, the Committee can decide not to pro-rate an award

(or pro-rate to a lesser extent) if it regards it as appropriate to

do so in the particular circumstances.

The Committee shall be entitled to exercise its judgement with

regard to settlement of potential claims, including but not limited

to wrongful dismissal, unfair dismissal, breach of contract and

discrimination, where it is appropriate to do so in the interests

of the Company and its shareholders.

In the event that any payment is made in relation to termination

for an executive director, this will be fully disclosed in the

following Annual Remuneration Report.

A timely announcement with respect to the termination of any

director’s appointment will be made to the regulatory news

service and posted on the Company’s corporate website.

Service agreements

Service agreements for executive directors

Each of the executive directors’ service agreements provides for:

• the reimbursement of expenses incurred by the executive

director in performance of their duties;

• 25 days’ paid holiday each year;

• sick pay; and

• a notice period of 12 months from either party.

In situations where an executive director is dismissed, the

Committee reserves the right to make additional exit payments

where such payments are made in good faith, such as:

• in discharge of a legal obligation; and

• by way of settlement or compromise of any claim arising

in connection with the termination of the director’s office

and employment.

Letters of appointment

Each of the non-executive directors has a letter of appointment.

The Company has no age limit for directors. Non-executive

directors derive no other benefit from their office, except that

the Committee retains the discretion to continue with existing

remuneration provisions, including pension contributions and the

provision of benefits, where an executive director becomes a

non-executive director. It is Company policy not to grant share

options or share awards to non-executive directors. The Chair of

the Board, Deputy Chair and the other non-executive directors

have a notice period of three months from either party.

Appointments to the Board are reviewed by the Nominations

Committee and recommendations made to the Board accordingly.

External appointments

The Board supports executive directors should they chose to

take non-executive directorships as a part of their continuing

development and agrees that the executive directors may retain

their fees from one such appointment. Further details on current

external directorships and fees can be found in the Annual

Remuneration Report on page 142.

Dilution limits

All the Company’s equity-based incentive plans incorporate

the current Investment Association Share Capital Management

Guidelines (‘Guidelines’) on headroom which provide that

overall dilution under all plans should not exceed 10% over

a ten-year period in relation to the Company’s issued share

capital (or reissue of treasury shares). In addition, the LTIP

operates with a 5% in ten-year dilution limit (excluding historic

discretionary awards). The Company regularly monitors the

position and prior to making any award the Company ensures

that it will remain within these limits. Any awards which will be

satisfied by market purchase shares are excluded from such

calculations. As at 6 July 2022, the Company’s dilution position,

which remains within the current Guidelines, was 4.4% for all

plans (against a limit of 10%) and 2.1% for the LTIP (against

a limit of 5%).

130 Currys plc Annual Report & Accounts 2021/22

Remuneration Committee report

Remuneration Committee purpose

The Board has delegated to the Remuneration Committee (the

‘Committee’) responsibility for determining policy in relation to the

remuneration packages for executive directors, the Chair of the Board

and other senior management. Remuneration needs to promote the

long-term sustainable success of the business through the attraction

and retention of executives who have the ability, experience and

dedication to deliver outstanding returns for our shareholders. This

delegation includes their terms and conditions of employment in

addition to the operation of the Group’s share-based employee

incentive schemes. The Committee also makes recommendations and

monitors the level and the overall reasonableness of the structure of

remuneration for the general workforce. The Committee approves the

service agreements of each executive director, including termination

arrangements and considers the achievement of the performance

conditions under annual and long-term incentive arrangements.

Meetings

Only members of the Committee are entitled to attend Committee

meetings. The Chair of the Board, Group Chief Executive, Group

Chief Financial Officer, General Counsel and Company Secretary,

Chief People, Communications and Sustainability Officer, Group

Reward Director, Head of Executive Reward and Share Plans and

other members of senior management, and representatives from

the Company’s remuneration advisor (Willis Towers Watson)

attended the relevant Committee meetings by invitation.

No directors participate in discussions about their own remuneration.

The Company Secretary, or their nominee, acts as Secretary

to the Committee and attends all meetings. The Committee’s

deliberations are reported by its Chair at the subsequent Board

meeting and the minutes of each meeting are circulated to all

members of the Board following approval.

The Committee meets as and when required and at least twice a

year. The biographical details for each Committee member are

available on pages 82 and 83.

The Committee has the following principal duties:

• making recommendations to the Board on the Company’s

framework of executive remuneration;

• determining the fees of the Chair of the Board and Deputy Chair;

• considering and making recommendations to the Board

on the remuneration of the executive directors and senior

management relative to performance and market data;

• approving contracts of employment which exceed defined

thresholds of total remuneration or have unusual terms or

termination periods;

• considering and agreeing changes to the Remuneration Policy

or major changes to employee benefit structures;

• reviewing the reward and benefits structures across the group

for all levels of colleagues; and

• approving and operating employee share-based incentive

schemes and associated performance conditions and targets.

Activities during the year

The principal activities of the Committee during 2021/22 included:

Executive directors remuneration and governance

• 2022 Directors’ Remuneration Policy including development

and consultation with shareholders;

• Directors’ Remuneration Report reviewed and approved;

• Annual performance bonus;

– 2020/21 – assessed the performance of executive

directors against targets;

– 2021/22 – agreed the design including the performance

measures and targets including the approval of the

inclusion of an environmental measure;

– 2022/23 – reviewed annual performance bonus design;

• LTIP;

– 2021/22 – agreed the design including the performance

measure;

– 2022/23 – reviewed TSR peer group and approved

change to FTSE 250;

• benchmarking and approving base pay changes for Executive

Committee roles;

• monitoring the developments in the corporate governance

environment and investor expectations; and

• approving the grant of the Group Chief Financial Officer’s

buy-out award.

2021/22 HIGHLIGHTS

• Developing the 2022 Directors’ Remuneration Policy;

• Consulting with shareholders on the proposed 2022

Directors’ Remuneration Policy;

• Approving the vest of the first tranche of the Colleague

Shareholder Award.

Number of meetings

Committee members Meeting Attendance*

Tony DeNunzio

(Chair) 6/6

Andrea Gisle Joosen 6/6

Gerry Murphy 6/6

* Five scheduled and one ad hoc

The biographical details for each

Committee member are available on

pages 82 and 83.

www.currysplc.com

Committee Terms of Reference last

approved: 18 January 2022.

FURTHER

INFORMATION

131

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Financial Statements

Investor Information

Strategic Report

Wider workforce pay across the Group

• reviewing the 2021/22 Nordics’ colleague engagement score

and assessing the impact on the Group engagement target;

• agreeing the good leaver treatment for the Colleague

Shareholder Award relating to the closure of the

Portuguese office;

• approval of the February 2019 Colleague Shareholder

Award vesting;

• approving the UK Gender Pay Gap Report and reviewing similar

international reporting obligations;

• reviewing and approving various arrangements for senior

managers leaving the Company;

• approving share awards to senior management under the

2016 LTIP and SAYE and Colleague Shareholder for the wider

workforce,

• reviewing the wider workforce pay and bonus arrangements; and

• monitoring and ensuring alignment of remuneration practices

across the Group.

132 Currys plc Annual Report & Accounts 2021/22

Remuneration details for 2021/22

The following sections set out how the Remuneration Policy was implemented during 2021/22 and how it will be implemented for the

following year.

Single figure of directors’ remuneration for the year ended 30 April 2022 (audited information)

Base

salary

and fees

£’000

Pension

contributions

(3)

£’000

Taxable

benefits

(4)

£’000

Total fixed

remuneration

£’000

Annual

performance

bonus

£’000

Deferred

Bonus Plan

award

£’000

LTIP

payments

£’000

Total

variable

remuneration

£’000

Total

remuneration

£’000

Executive

Alex Baldock 877 88 75 1,040 735 367 469

(5)

1,571 2,611

Bruce Marsh

(1)

337 10 11 358 279 140 680

(6)

1,099 1,457

Former directors

Jonny Mason

(1, 2)

397 9 4 410 0 0 169

(5)

169 579

1,611 107 90 1,808 1,014 507 1,318 2,839 4,647

Non-executive

Eileen Burbidge 65 - 0 65 - - - - 65

Tony DeNunzio 140 - 1 141 - - - - 141

Andrea Gisle

Joosen 70 - 2 72 - - - - 72

Lord Livingston of

Parkhead

(7)

300 - 1 301 - - - - 301

Fiona McBain 75 - 1 76 - - - - 76

Gerry Murphy 70 - 0 70 - - - - 70

720 0 5 725 0 0 0 0 725

2,331 107 95 2,533 1,014 507 1,318 2,839 5,372

(1) Remuneration is shown for the period served on the Board. Jonny Mason stepped down from the Board on the 9 July 2021. Bruce Marsh was appointed to the Board on

12 July 2021.

(2) Jonny Mason was on a 12-month notice period to be given by the Company, and notice was given on 20 January 2021. After termination, payment in lieu of notice of

£291,064, was paid in instalments until the end of his notice period. He also received accrued holiday pay of £16,226. These amounts are included in the base salary figure.

(3) Pension contributions comprise the Company’s contribution or allowance in lieu. The contribution amount was 10% of salary for Alex Baldock and Jonny Mason, and

3% for Bruce Marsh.

(4) Taxable benefits for executive directors include private medical insurance and car allowance or driver benefit amounts. £73,937 for Alex Baldock relates to the

grossed-up element payable to cover the tax liability for his car and driver, arising from business activities considered taxable by HMRC. For non-executive directors

they include routine travel expenses relating to travel, accommodation and subsistence costs incurred in connection with attendance at Board meetings and other

Board business during the year, which are considered taxable by HMRC.

(5) Share plans vesting represent the value of LTIP awards where the performance period ends on 30 April 2022 and are based on a share price of £0.9464, being the

three-month average to 30 April 2022 and an estimate of the accrued dividend equivalent up to 30 April 2022 using the same share price. Jonny Mason’s award has

been pro-rated for service to his termination date. The proportion of the value of the LTIP that is attributable to share price depreciation (the depreciation being the

difference between the face value at the date of award and the vested value of the award) is 23%.

(6) Bruce Marsh received a buy-out award and cash payment to compensate for bonus and awards lost from his previous employer. The total value of £680,231, reported

in the table is made up from the cash payment of £271,449 paid on joining and the buy-out award value of £408,782. The buy-out award comprised of nil cost options

over 410,366 shares. 72,693 vested immediately on grant on 22 October 2021, valued at £89,194 using the share price of £1.227, being the mid-market price on the day

of grant and the remaining award over 337,673 shares is valued at £319,588, using a share price of £0.9464, being the three-month average to 30 April 2022.

(7) Ian Livingston has a deferred pension in the Dixons Retirement and Employee Security Scheme.

133

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Strategic Report

Single figure of directors’ remuneration for the year ended 1 May 2021 (audited information)

Base

salary

and fees

(1)

£’000

Pension

contributions

(3)

£’000

Taxable

benefits

(4)

£’000

Total fixed

remuneration

£’000

Annual

performance

bonus

£’000

Deferred

Bonus Plan

award

£’000

LTIP

payments

(5)

£’000

Total

variable

remuneration

£’000

Total

remuneration

£’000

Executive

Alex Baldock

(2)

843 85 34 962 763 381 778 1,922 2,884

Jonny Mason

(2)

466 47 13 526 422 211 558 1,191 1,717

1,309 132 47 1,488 1,185 592 1,336 3,113 4,601

Non-executive

Eileen Burbidge

(2)

63 – – 63 – – – – 63

Tony DeNunzio

(2)

136 – – 136 – – – – 136

Andrea

Gisle Joosen 68 – – 68 – – – – 68

Lord Livingston of

Parkhead

(2, 6)

292 – – 292 – – – – 292

Fiona McBain

(2)

73 – – 73 – – – – 73

Gerry Murphy

(2)

68 – – 68 – – – – 68

700 0 0 700 0 0 0 0 700

2,009 132 47 2,188 1,185 592 1,386 3,113 5,301

(1) Due to the impact of Covid-19, all members of the Board agreed to a temporary 20% reduction in base pay and fees from 5 April 2020 to 28 June 2020. Base pay

amounts waived by Alex Baldock and Jonny Mason for the period from 3 May 2020 to 28 June 2020 were £26,654 and £14,738, respectively.

(2) On 6 August 2020, in order to align all payroll dates across the UK & Ireland business, all colleagues who were paid on a monthly payroll moved onto a four weekly

payroll cycle. On this basis, those executive directors and non-executive directors previously on a monthly pay frequency also changed their pay frequency.

(3) Pension contributions comprise the Company’s contribution or allowance in lieu. The contribution amount was 10% of salary for Alex Baldock and Jonny Mason.

(4) Taxable benefits for executive directors include private medical insurance and car allowance or driver benefit amounts. £30,798 for Alex Baldock relates to the

grossed-up element payable to cover the tax liability for his car and driver, arising from business activities considered taxable by HMRC. In addition, for Alex Baldock

the benefits also includes the gain resulting from the 2020 Sharesave grant, in which he participates on the same basis as all eligible employees.

(5) Share plans vesting represent the value of LTIP awards and associated accrued dividend equivalents, where the performance period ends on 1 May 2021 and are

based on a share price of £1.167 for Alex Baldock’s award and £1.407 for Jonny Mason’s award, being the share price on the vesting date of 19 July 2021 and 13 August

2021 respectively. Jonny Mason’s award has been pro-rated for service to his termination date. The proportion of the value of the LTIP that is attributable to share

price depreciation (the depreciation being the difference between the face value at the date of award and the vested value of the award) is 40% for Alex Baldock’s

award and 22% for Jonny Mason’s award.

(6) Ian Livingston has a deferred pension in the Dixons Retirement and Employee Security Scheme.

134 Currys plc Annual Report & Accounts 2021/22

Annual performance bonus for 2021/22 (audited information)

The maximum bonus opportunity for executive directors was 150% of base salary based on performance in the 12-month period

to the end of the financial year. The maximum is payable at the maximum level of performance, 20% of the maximum opportunity

is payable on achievement of threshold performance (30% of base salary) and 60% on achievement of target performance

(90% of base salary). No bonus is payable if the minimum EBIT threshold is not achieved.

The Committee determined at the beginning of the year that the disclosure of performance targets was commercially sensitive and

therefore these were not disclosed in last year’s Directors’ Remuneration Report. This was because targets were set within the context

of a longer-term business plan and this disclosure could give information to competitors to the detriment of business performance. The

Committee has, however, disclosed in the table below the targets on a retrospective basis and the actual performance against these.

The Committee has a robust process for considering and calibrating performance targets, taking into account internal and external

expectations including the anticipated impact of Covid-19-related store closures, which ensures that they represent a significant stretch

which corresponds to the creation of value for shareholders.

Measure

As a percentage

of maximum bonus

opportunity Threshold Target Maximum Actual

Potential

Bonus %

Achieved

Adjusted EBIT 45% £228m £253m £278m

£277m

(vs £213m 2020/21) 44.28%

Average net (debt)/funds 15% £175m £235m £295m

£290m

(vs £207 2020/21) 14.50%

Customer Net Promoter Score 15% 64.10% 65.60% 67.10%

66.12%

(vs 65% 2020/21) 11.02%

Employee engagement score 15% 75 77 78

(vs 67.8 2020/21) 9.00%

Environmental:

• E-waste take back volumes

(tonnes) 5% 106,897 108,394 111,230

102,839

(vs 104,173 2020/21) 0%

• Progress to Net Zero

(tonnes of CO

e emitted) 5% 35,195 34,470 32,656

21,221

(vs 35,321 2020/21) 5.00%

Total 83.80%

Total Awarded 83.80%

Although it was another challenging year in a rapidly changing business and economic environment, the continuing impact of

Covid-19, the war in Ukraine, supply chain disruptions and high inflation, financial performance was strong, with both the Adjusted EBIT

and average net cash outcomes significantly improved compared to 2020/21.

A focus on customer satisfaction and employee engagement resulted in improved scores in these areas (although it should be noted

that the figures are not directly comparable with 2020/21 results due to a change in engagement survey provided/measurement basis).

The two environmental measures were introduced in the annual performance bonus plan for the first time in 2021/22. These measures

are reflected and deeply embedded in our strategy, and meet the growing expectation from our colleagues, customers and

shareholders to focus on the climate agenda, as discussed in the sustainable business section of the Strategic Report. Significant

progress has been made in 2021/22 in our Scope 1 and 2 emission reduction due to the alignment across the Group to procure

renewable electricity (as much as practically possible). This is reflected in the positive outcome of the Progress to Net Zero measure.

The ‘Treating Customers Fairly’ (‘TCF’) withholding condition applies to all executive directors. This states that the company must

perform at a rate of 90% or better on the ‘Must Do’ assessment regarding regulated products. If this isn’t met, then 10% of the bonus

must be withheld. The TCF outcome for 2021/22 was 93.37%, and therefore, no withholding is required.

The Committee considered whether or not to adjust the formulaic outcome of 83.80% of maximum and decided it was satisfied

that the outcome is both fair and appropriate given the strong financial performance delivered and the wider stakeholder

experience outlined in the Remuneration in context section on pages 114 and 115. The Committee took into consideration the

non-recurring nature of the £22m year on year network debtor revaluation to the UK & Ireland EBIT. However, this was more than

counterbalanced by the negative impacts of business rate tax (£39m), changes to the iD contract terms (£20m) and to changes

in IT cloud expenditure (£15m). Therefore, for the avoidance of doubt no Committee discretion was exercised in respect of the

formulaic outcome outlined above.

Remuneration details for 2021/22 continued

135

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Investor Information

Strategic Report

LTIP and other share awards (audited information)

LTIP Awards made during 2021/22

Nil cost option awards of 250% of base salary were made to the executive directors on 2 August 2021.

The performance period for the awards is the three financial years up to the end of the 2023/24 financial year and they have

two equally weighted performance conditions. Half of the awards are subject to the achievement of a relative TSR performance

condition, measured against a bespoke comparator group comprised of 21 European Special Lines Retailers and other comparable

companies at the start of the performance period. The list of companies included in the group is provided below.

The relative TSR condition will be assessed over the three-year performance period, with vesting determined as follows:

Rank of Company TSR against comparator group TSR % of TSR element vesting

Below Median 0%

Median 25%

Between Median and Upper-Quartile basis Pro-rata between 25% and 100% on a straight-line basis

Upper Quartile or above 100%

Comparator group: AO World, Ceconomy AG, Dufry AG, Dunelm Group, Fenix Outdoor International AG, Fielmann AG, FNAC Darty SA,

Frasers plc, Grandvision N.V., JD Sports Fashion, Kingfisher, Maisons Du Monde S.A., Marks & Spencer Group.,Mobilezone Holding AG,

Pets At Home Group, SMCP S.A.S., Superdry, Valora Holding AG, WH Smith, XXL ASA, Zur Rose Group AG.

The free cash flow performance condition is measured cumulatively over the three-year performance period. The percentage of the

award vesting will be as follows:

Cumulative free cash flow up to the end of the 2023/24 financial year % of the free cash flow element vesting

Below £504m 0%

£504m 10%

Between £504m and £593m basis Pro-rata between 10% and 25% on a straight-line basis

£593m 25%

Between £593m and £682m Pro-rata between 25% and 100%

Above £682m 100%

The free cash flow targets were set taking into account a number of inputs including market consensus at the time of the award and

the external environment within which the Company is operating. As always, the Committee will consider the level of performance

achieved at the end of the performance period and would be prepared to exercise discretion if the formulaic outcome was not

appropriate or aligned with the shareholder experience.

Calculations of the achievement against the targets will be independently performed and approved by the Committee. Free cash flow

is defined in the Glossary and definitions section on page 240; however, the Committee retains discretion to adjust for exceptional items

which impact cash flow during the performance period and will make full and clear disclosure of any such adjustments in the Directors’

Remuneration Report, together with details of the achieved levels of performance, as determined by the above definitions, at the end

of the performance period.

Awards will be subject to recovery and withholding provisions for material misstatement, misconduct, calculation error, reputational

damage and corporate failure, enabling performance adjustments and/or recovery of sums already paid. These provisions will

apply for up to three years after vesting.

The awards are subject to a two-year post-vesting holding period, during which the executive director is not permitted to sell any

shares vesting, other than those required to settle any tax obligations.

The table below sets out the LTIP awards made to the executive directors in 2021/22:

Nil cost options

awarded

Share price at

date of award

Face value

(1)

End of

performance

period Vesting date

Minimum value at

threshold vesting

(2)

Alex Baldock – 250% of salary

(3)

1,677,632 1.296 2,167,500 4 May 2024 2 August 2024 380,487

Bruce Marsh – 250% of salary

(3)

803,018 1.296 1,037,500 4 May 2024 2 August 2024 182,124

(1) The face value is calculated based on the number of options awarded multiplied by the share price on the business day prior to grant, being 30 July 2021 (129.2p).

(2) The minimum value at threshold vesting is calculated on 50% of the award operating with a threshold vesting of 25% of maximum, and 50% with a threshold vesting

of 10% of maximum. Value calculated using the share price at the grant date of the award being 2 August 2021 (129.6p).

(3) Nil cost option awards were made to Alex Baldock and Bruce Marsh on 2 August 2021 and the share price used to calculate the number of shares granted was the

mid-market price on the business day prior to grant, being 30 July 2021 (129.2p).

136 Currys plc Annual Report & Accounts 2021/22

Buy-out awards made during 2021/22

In addition to the LTIP awards, as described in last year’s report, Bruce Marsh received a buy-out award and cash payment to

compensate for bonus and awards lost from his previous employer. The cash payment of £271,449 was paid on joining. The buy-out

award comprised of a nil cost option over 410,366 shares in the Company and was granted on the 22 October 2021. The award was

calculated based on a reference value of £504,340, with the number of shares subject to the award based on the price of £1.229,

being the mid-market price on the dealing day prior to the grant (21 October 2021). The buy-out award was entered into without prior

shareholder approval in accordance with LR 9.4.2(2) and will be limited to settlement with market purchase ordinary shares.

The buy-out award was divided into two awards.

Award A, of equal value to Bruce Marsh’s annual base salary of £415,000, will ordinarily vest on 12 July 2024 (‘Vesting Date’), subject

to his continued service with the Company and that neither party has served notice to terminate employment prior to the Vesting Date.

Award A will be exercisable in three equal tranches as follows:

As from an exercise period commencing No. of related vested shares exercisable

12 July 2024 112,557 (Tranche 1)

12 July 2025 112,558 (Tranche 2)

12 July 2026 112,558 (Tranche 3)

Award B, equal to 72,693 shares in the Company, vested immediately on grant.

In addition, immediately on vest Bruce exercised the 72,693 options, and sold 34,287 shares to cover the tax liability arising on the

transaction. The remaining 38,406 shares were retained.

Other significant terms of the awards are as follows:

Once exercisable, the respective tranches shall ordinarily remain exercisable until the tenth anniversary of the grant date.

Additional shares may be added to each tranche on exercise, by reference to the value of dividends that would have been

payable between the grant of the award and the commencement of the relevant exercise period.

The award is non-pensionable and will be satisfied with existing shares other than treasury shares.

In the event of cessation of service or notice being served prior to the vesting date, the award shall lapse unless in exceptional circumstances

the Committee determines otherwise (in which case, it shall specify to what extent and on what terms the award may continue).

In the event of cessation of service or notice on or following the vesting date, the award shall remain capable of becoming

exercisable on normal timetable, but the exercise period for each tranche shall be shortened to six months.

In the event of a qualifying change of control prior to the vesting date, the award shall vest early, to such extent as the Committee

determines appropriate but as to no less than a pro-rata extent based on time elapsed into the normal vesting period. In the event

of a qualifying change of control on or following the vesting date, the award shall become exercisable early (as relevant) at such

time. Early vesting may also exceptionally arise at the discretion of the Committee in response to a demerger, delisting, special

dividend or similar event which, in the opinion, would affect the market price of the Company’s shares to a material extent.

The number of shares subject to the award may be adjusted in the event of a variation of share capital.

No further award will be made under this arrangement and no amendments will be made to the advantage of Bruce Marsh in

relation to (i) the basis for determining his entitlement to, and the terms of, shares to be provided under the award; and (ii) any

adjustment that may be made for any variation of share capital or special dividend without prior shareholder approval in general

meeting except for minor amendments to benefit the administration of the award, to take account of a change in legislation or to

obtain or maintain favourable tax, exchange control or regulatory treatment.

The award is personal to Bruce Marsh and cannot be transferred, assigned or otherwise disposed of by him (other than to his

personal representative following his death).

Remuneration details for 2021/22 continued

137

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Financial Statements

Investor Information

Strategic Report

Deferred Share Bonus Plan awards made during 2020/21

On 6 July 2021 the following nil cost options were granted to Alex Baldock and Jonny Mason under the Company Deferred Share

Bonus Plan (‘DSBP’):

Nil cost options

awarded

Share price used to

grant award

(1)

Face value

(2)

£ Vesting date

Alex Baldock 278,249 1.371 381,480 6 July 2023

Jonny Mason 153,856 1.371 210,936 6 July 2023

(1) The share price used to calculate the numbers of shares granted was using the mid-market price on the day prior to grant, being 5 July 2021.

(2) The face value is calculated based on the number of options awarded multiplied by the share price used to grant the award.

The awards represent one-third of the 2020/21 annual performance bonus entitlement granted in accordance with the Company’s

approved Remuneration Policy, approved by shareholders at the annual general meeting in 2019. Details of the 2020/21 annual

performance bonus were disclosed in the 2020/21 Directors’ Remuneration Report.

Each award (a nil cost option) will be satisfied using market purchase shares and will ordinarily vest and become exercisable on the

second anniversary of grant.

Vesting of awards made under 2016 LTIP (audited information)

Nil cost option awards equivalent to 250% of base salary were made to Alex Baldock and Jonny Mason on 25 July 2019. The

performance period for the awards was the three financial years up to the end of the 2021/22 financial year and there were

two equally weighted performance conditions. Half of the awards are subject to the achievement of a relative TSR performance

condition, measured against a bespoke comparator group comprised of 21 European Special Lines Retailers and other comparable

companies at the start of the performance period. The list of companies included in the group is provided below.

The remaining half of the awards was subject to the achievement of a cumulative free cash flow target. The performance period for

these awards ended on 30 April 2022.

The performance measures for the award and the outcomes are shown below.

TSR target

Level of performance Below threshold Threshold Maximum Achieved

TSR performance over performance period Below Median Median Upper Quartile Below Median

Vesting level 0% 25% 100% 0%

Comparator group: AO World, Ceconomy AG, Dufry AG, Dunelm Group, Esprit, Fenix Outdoor International AG, Fielmann AG, FNAC

Darty SA, Grandvision N.V., JD Sports Fashion, Kingfisher, Maisons Du Monde S.A., Marks & Spencer Group., Mobilezone Holding AG,

Pets At Home Group, SMCP S.A.S., Sports Direct International, Superdry, Valora Holding AG, WH Smith, XXL ASA, Zur Rose Group AG.

Cumulative free cash flow

Level of performance Below threshold Threshold Target Maximum Achieved

Cumulative free cash flow over the

performance period Below £500m £500m £586m £674m £619m

Vesting level 0% 10% 25% 100% 53%

Based on the achieved level of performance, the threshold required for vesting for the TSR element was not met but the free cash flow

achieved a vesting percentage of 53%. Overall vesting was therefore 26.5%. The Committee reviewed whether any discretion should be

applied to the vesting outcomes and determined that it was satisfied that the outcome is both fair and appropriate given the overall

performance and the wider stakeholder experience outlined in the Remuneration in context section on pages 114 and 115. On this basis,

the Committee determined that the awards should be paid in accordance with the vesting outcome.

All the awards are subject to a two-year post-vesting holding period, during which the executive director is not permitted to sell any

shares vesting, other than those required to settle any tax obligations.

138 Currys plc Annual Report & Accounts 2021/22

Nil cost options

awarded

Overall vesting

awards Vesting date

Alex Baldock 1,737,350 26.5% 460,445 25 July 2022

Jonny Mason

(1)

627,072 26.5% 1 66 ,1 74 25 July 2022

(1) Jonny Mason’s award has been pro-rated for service to his termination date.

Accrued dividend equivalents, calculated by reference to the value of dividends that would have been payable between the grant

of the award and the start of the exercise period will be added to each award.

Vesting of 2018/19 Deferred Share Bonus Plan awards (audited information)

On 25 July 2019 the following nil cost options were granted to Alex Baldock and Jonny Mason under the Dixons Carphone 2018/19

Deferred Share Bonus Plan (‘DSBP’). The awards were granted in respect of 100% of the 2018/19 annual bonus entitlement, which

both Alex Baldock and Jonny Mason voluntarily deferred into a share award which vested two years from the grant date:

Nil cost options

awarded

Share price used to

grant award

(1)

Face value

(2)

£ Vesting date

Alex Baldock 506,490 1.223 619,438 26 July 2021

Jonny Mason 199,494 1.223 243,981 26 July 2021

(1) The share price used to calculate the numbers of shares granted was using the mid-market price on the day prior to grant, being 24 July 2019.

(2) The face value is calculated based on the number of options awarded multiplied by the share price used to grant the award.

The awards vested on 26 July 2021.

Accrued dividend equivalents, calculated by reference to the value of dividends that would have been payable between the grant

of the award and the start of the exercise period were added to each award.

Vesting of buy-out award granted in accordance with the Listing Rule 9.4.2(2) of the Listing Rules

(audited information)

Jonny Mason

On 13 August 2018, the Company granted Jonny Mason a buy-out award to facilitate his recruitment and compensate for awards

lost from his previous employer. The award was granted under a one-off award agreement in accordance with Listing Rule 9.4.2(2)

of the Listing Rules.

The award comprised of a nil cost option over 81,435 shares in the Company and vested three years from the grant date (the ‘Vesting

Date’), subject to continued service and that neither party has served notice to terminate employment prior to such time. On the basis that

Jonny Mason was deemed to be a good leaver by the Committee, it was determined that the award, pro-rated for service to 78,835

shares, vested on the 13 August 2021. Following vesting, the award then ordinarily becomes exercisable in three tranches as set out below:

As from an exercise period commencing No. of related vested shares exercisable

13 August 2021 24,546 (Tranche 1)

13 August 2022 27,145 (Tranche 2)

13 August 2023 27,145 (Tranche 3)

Jonny exercised Tranche 1 of the award on 17 August 2021. An additional 2,997 shares were added to the tranche on exercise as

accrued dividend equivalents, calculated by reference to the value of dividends that would have been payable between the grant

of the award and the start of the exercise period.

Jonny exercised a total of 27,543 options, made up of 24,546 options and 2,997 accrued dividend equivalents, and then sold all the shares.

Full details relating to the award were disclosed in the 2018/19 Remuneration Report.

Remuneration details for 2021/22 continued

139

Governance

Financial Statements

Investor Information

Strategic Report

Performance graph

The graph below shows the value, by 30 April 2022, of £100 invested in Currys on 31 March 2012, compared with the value of £100

invested in the FTSE 350 Index on the same date. The other points plotted are the values at intervening financial year ends.

The FTSE 350 has been used as it is a broad market which includes the Company and a number of its competitors.

Group Chief Executive pay

The following table shows, over the same ten-year period as the performance graph, the Group Chief Executive’s single total figure

of remuneration, the amount of bonus earned as a percentage of the maximum remuneration possible, and the vesting of long-term

awards as a percentage of the maximum number of shares that could have vested, where applicable.

Year

CEO single figure

of remuneration

£’000

Annual bonus payout

against maximum

Long-term incentive vesting rates

against maximum opportunity

2021/22 Alex Baldock 2,611 83.8% 26.5%

2020/21 Alex Baldock

(2)

2,884

(1)

88% 50%

2019/20 Alex Baldock

(2)

1,038 0% n/a

2018/19 Alex Baldock 1,619 58%

(3)

n/a

2017/1 8 Alex Baldock 1,946

(4)

0% n/a

2017/1 8 Sebastian James 2,716

(5)

0% n/a

2016/17 Sebastian James 1,795 83% n/a

2015/16 Sebastian James 1,616 68% n/a

2014/15 Sebastian James 1,687 100% n/a

2014/15 Andrew Harrison 420 100% n/a

2013/14 Andrew Harrison 679 54% n /a

2013/14 Roger Taylor 159 n/a n/a

2012/13 Roger Taylor 958 55% n/a

(1) The 2020/21 CEO single figure has been restated to account for the LTIP value on the vesting date.

(2) As a result of Covid-19, Alex Baldock voluntarily agreed to a temporary 20% base pay reductions with effect from 5 April 2020 to 28 June 2020.

(3) Alex Baldock voluntarily deferred 100% of his annual performance bonus into a share award, vesting two-years from grant.

(4) The single figure has been restated to include the value of the buy-out award, of 989,078 nil cost options, which was granted on 3 April 2018. The face value of the

award at the date of grant was £1,871,336, using the share price on the date of grant of £1.8920. As there were no performance conditions attached to this award other

than continued employment the value of the award at grant should have been included in the 2017/18 CEO single figure. Full details of the award were detailed in the

2017/18 Remuneration Report.

(5) The single figure includes the taxable benefit relating to the waiving of the loan from the Dixons Share Plan award.

£350

£300

£250

£200

£150

£100

£50

Data is sourced from S&P CapIQ.

31 March

2012

31 March

2013

29 March

2014

2 May

2015

30 April

2016

29 April

2017

28 April

2018

27 April

2019

2 May

2020

1 May

2021

30 April

2022

Currys

FTSE 350

140 Currys plc Annual Report & Accounts 2021/22

Annual percentage change in remuneration

The table below provides the percentage change in the annual remuneration of directors and the average UK colleague from

2019/20 onwards.

As the parent company only employs a small number of the workforce, the average UK colleague was deemed to be the most

appropriate comparator group, as the UK has the largest employee base, and the Committee considers remuneration levels in the

UK when setting salaries and fees for the executive and non-executive directors and the Group Chief Executive is based in the UK.

Percentage change from 2020/21 to 2021/22 Percentage change from 2019/20 to 2020/21

Salary and

fees

(2)

Taxable

benefits

(5)

Annual

bonuses

Salary

and fees

(2)

Taxable

benefits

(5)

Annual

bonuses

(6)

Executive directors

Group Chief Executive –

Alex Baldock 3.9% 123% -3.7% -0.8% -67% 100%

Group Chief Financial Officer –

Jonny Mason N/A

(1)

N/A

(1)

N/A

(1)

-0.8% -0.8% 100%

Group Chief Financial Officer –

Bruce Marsh N/A

(1)

N/A

(1)

N/A

(1)

N/A

(1)

N/A

(1)

N/A

(1)

Non-executive directors

Eileen Burbidge 2.8% 0% N/A -1.3% -100% N/A

Tony DeNunzio 2.8% 100% N/A -1.3% -100% N/A

Andrea Gisle Joosen

(3)

3.1% 100% N/A -3.2% -100% N/A

Lord Livingston of Parkhead 2.8% 100% N /A -1.3% -100% N/A

Fiona McBain 2.8% 100% N/A -1.3% -100% N /A

Gerry Murphy 2.8% 0% N /A -1.3% 0% N/A

Employees 2.0%

(4)

0% N /A

(7)

-6.5%

(4)

0% N /A

(7)

(1) No figures have been included for Jonny Mason and Bruce Marsh, as they left and joined during the 2021/22 year.

(2) No pay increases were applied for 2020/21 for the Group Chief Executive, Group Chief Financial Officer and non-executive directors, however they voluntarily

agreed to a temporary 20% base pay reductions with effect from 5 April 2020. Pay was reinstated to the full 100% on 28 June 2020 and the Group Chief Executive

received an annual pay increase of 1.5% on 1 August 2021.

(3) Andrea Gisle Joosen is paid on a four weekly payroll cycle and therefore the impact of the 20% reduction on basic fees paid was different than for the other

non-executive directors, who were paid on a monthly payroll cycle up to 10 July 2020. From 11 July 2020 all non-executive directors moved to a four weekly payroll

cycle. The same reduction of 20% was applied for all across the same period.

(4) The average employee percentage change is materially impacted by the grade mix of our colleagues, and therefore the percentage change has been calculated

using the median pay data collated for CEO pay ratio reporting purposes. As referenced in the Chair’s statement on pages 114-116, our UK corporate colleagues

received an average pay increase of 2% on 1 August 2021, and our hourly paid UK colleagues received an average increase of 9% in October 2021.

(5) The percentage change in taxable benefits for the UK workforce is considered to be 0% since there have been no material changes in UK benefits. The Group Chief

Executive and non-executive directors’ taxable benefit figure includes the variable expenses relating to travel and subsistence costs deemed taxable by HMRC as

referenced in the Single Figure tables on pages 132 and 133. No expenses were claimed by the non-executive directors in 2020/21 due to travel restrictions, claims were

made in 2019/20 and 2021/22, therefore a 100% decrease and 100% increase has been applied.

(6) No annual performance bonus was paid out for 2019/20 for UK or Group, due to the EBIT performance threshold not being met by the business areas, so a 100%

increase has been applied for 2020/21, as an annual performance bonus has been paid for 2020/21.

(7) The median UK colleague is not eligible for an annual performance bonus.

Relative importance of spend on pay

The following table sets out both the total cost of remuneration for the Group compared with adjusted EBIT and profits distributed

for 2021/22 and the prior year. Adjusted EBIT was chosen by the Committee as it is the most appropriate measure of the Group’s

performance. Adjusted EBIT is defined in the Glossary and definitions section on page 234.

Year

2021/22

£million

2020/21

£million

Change

Dividends

(1)

46 Nil 100%

Share buybacks

(2)

32 Nil 100%

Adjusted EBIT

(3)

274 262 4.58%

Total staff costs – continuing operations

(4)

1,008 1,075 -6.23%

Number Number

Change

Average employee numbers – continuing operations

(4)

33,532 36,087 -7.1%

(1) Extracted from note 23 to the Group financial statements.

(2) The Company completed a £32m share buyback in 2021/22. There were no share buybacks in 2020/21.

(3) Extracted from note A2.

(4) Extracted from note 4 to the Group financial statements.

Remuneration details for 2021/22 continued

141

Governance

Financial Statements

Investor Information

Strategic Report

CEO pay ratio

The legislation requires the publishing of the ratio of total remuneration of the Group Chief Executive to the 25th, 50th and 75th

equivalent percentile of full-time equivalent colleagues.

The ratio is shown in the table below:

Financial year Methodology

P25

(Lower Quartile)

P50

(Median)

P75

(Upper Quartile)

2021/22 Option A 133:1 116:1 86:1

2020/21

(1)

Option A 167:1 142:1 107:1

2019/20 Option A 54:1 48:1 37:1

2018/19 Option A 79:1 65:1 50:1

(1) The 2020/21 CEO pay ratio has been restated to account for the actual value of the LTIP at the vesting date.

Of the three calculation approaches available in the regulations, we have chosen Methodology A because we believe it to be the

most appropriate and robust way for the Company to calculate the ratio.

In determining the figures, the following should be noted:

• The single total figure of remuneration of our UK colleagues was calculated as at 30 April 2022 and ranked using 2021/22 P60

and P11D data, employer pension contributions and payments under the Company share schemes, in line with the reporting

regulations. P60 data was used as it also includes the value of any overtime payments made in the year.

• Part time colleagues’ earnings have been annualised on a full-time equivalent basis.

• Joiners and leavers were excluded from the ranking.

• The 25th, 50th and 75th percentile colleagues’ single total figure of remuneration was then identified and compared to the CEO

pay, as shown in the single total figure of remuneration table on page 132.

The following table provides base salary and total remuneration information in respect of the 25th, 50th and 75th percentile

colleagues, on a full-time equivalent basis.

Financial Year Remuneration

Group Chief

Executive

(£)

P25

(Lower Quartile)

(£)

P50

(Median)

(£)

P75

(Upper Quartile)

(£)

2021/22 Base salary 876,571 19, 266 19,266 26,912

Total remuneration 2,610,134 19,690 22,437 30,317

The Committee has confirmed that the ratio is consistent with the Company’s wider policies on colleague pay and reward, taking into

account a range of factors including market practice, experience and National Living Wage requirements.

The pay ratio has decreased from 2020/21, primarily due to headcount reductions in lower paid areas of the business. In particular,

a large part of Supply Chain was outsourced to GXO in August 2021, reducing headcount by 1,500 colleagues. Additionally, the

closure of Dixons Travel in December 2021 resulted in a headcount reduction of 150 colleagues. Another significant factor was that

the Company increased pay rates for almost 12,000 colleagues in October 2021, in line with the Real Living Wage (RLW).

The ratio of the CEO’s pay to that of all colleagues is likely to be a volatile number, mainly resulting from the Group Chief Executive

having a larger proportion of his total remuneration linked to business performance than other colleagues in the UK workforce and

therefore it does not necessarily shed any light on the alignment or otherwise with regard to pay, reward and progression for the UK

workforce. This alignment is, however, something that the Committee considers as part of its overall responsibilities.

The Company continues to take its responsibilities to all stakeholders seriously. Our achievements this year and renewed financial

strength has allowed us to invest in our colleagues and announce substantial pay increases for our hourly paid colleagues. From

1 August 2022, we plan to pay a minimum base hourly rate of £10 to all hourly paid UK colleagues. This is above the Real Living Wage

for colleagues outside London. The new London rate will continue to align to the RLW rate of £11.05 per hour. This will result in an

average increase of 5.2% for our hourly paid UK colleagues.

142 Currys plc Annual Report & Accounts 2021/22

Service agreements

Service contracts

The following table summarises key terms of the service contracts in place with the executive directors:

Date of contract

Alex Baldock 3 April 18

Bruce Marsh 12 July 21

More details are set out in the Service agreements section of the report on page 129.

Letter of appointment

Non-executive directors are normally appointed for three-year terms, subject to annual re-election at the annual general meetings,

although appointments may vary depending on length of service and succession planning considerations. Appointments are

reviewed annually by the Nominations Committee and recommendations made to the Board accordingly. The contracts in respect

of the Chair of the Board’s, Deputy Chair’s and non-executive directors’ services can be terminated by either party, the Company

or the director, giving not less than three months’ notice.

The date of the letters of appointment are shown below:

Letter of appointment

Eileen Burbidge 1 Jan 19

Tony DeNunzio 16 Dec 15

Andrea Gisle Joosen 6 Aug 14

Lord Livingston of Parkhead 16 Dec 15

Fiona McBain 1 Mar 17

Gerry Murphy 6 Aug 14

External directorships

The policy relating to external directorships is outlined in the Remuneration Policy; the following external directorship was undertaken

and fee retained:

• Alex Baldock was appointed a non-executive director of RS Group plc on 1 September 2021 and was paid a fee of £41,133 from

appointment to 30 April 2022.

Leavers and joiners (audited information)

Bruce Marsh

In January 2021, the Board announced the appointment of Bruce Marsh as Group Chief Financial Officer, with effect from 12 July 2021.

Bruce had been Finance Director, UK & Ireland, at Tesco plc since 2015. Before that he was at Kingfisher plc, where he was Managing

Director of Kingfisher Future Homes and Group Strategy Director, and previously held a number of senior finance roles at Dixons Retail plc.

His salary from the date of appointment was £415,000. In line with policy, he is eligible to receive a pension allowance of 3% of

base salary and a maximum bonus of 150% of base salary, with one-third deferred into shares for two years. His normal LTIP will be

250% of base salary per annum. Bruce is on a 12-month notice period from either party.

Upon joining, Bruce received 250% of base salary under the 2016 LTIP for the financial year 2021/22. In addition, he received a

buy-out award and cash payment to compensate for bonus and awards lost from his previous employer. Details of the buy-out

are set out on page 136. The cash payment of £271,448 was paid on joining. The buy-out award of Currys plc shares was granted

on 22 October 2021 with a face value of £504,340. The buy-out award was granted under the Listing Rule 9.4.2 (2), and full details

of the award were disclosed at grant.

The payment and award are consistent with our Remuneration Policy and, we believe, represent an excellent investment in securing

a leader with Bruce’s experience and capabilities.

Jonny Mason

The Committee considered the appropriate termination terms for Jonny on his departure. His termination arrangements were in line

with the approved Remuneration Policy.

Jonny was on a 12-month notice period to be given by the Company, and notice was given on 20 January 2021. After termination,

payment in lieu of notice of £291,064, was paid in instalments until the end of his notice period. He also received accrued holiday

pay of £16,226.

Remuneration details for 2021/22 continued

143

Governance

Financial Statements

Investor Information

Strategic Report

Jonny received payment of the 2020/21 bonus of £632,808, which was assessed on the same performance criteria as other

participants at the year end. Two-thirds of the bonus was paid in cash and one-third in deferred shares vesting in two years; details

of the award are set out on page 137. He was not eligible for a 2021/22 bonus or LTIP grant.

The Committee has determined that Jonny will receive good leaver status in respect of his outstanding buy-out, LTIP and DSBP

awards, taking account of his significant contribution to the strong profit and cash flow performance in the year and ongoing efforts

supporting a successful transition to the new Chief Financial Officer. The buy-out and LTIP awards have been pro-rated for his

period of employment.

Payments to past directors (audited information)

No payments were made to past directors during 2021/22.

Directors’ interests in LTIP (audited information)

Date of grant

At 1 May

2021

Awarded in

the year

Lapsed or

forfeited in

the year

Exercised

in the year

At 30 April

2022

Date from

which first

exercisable

Expiry of the

exercise

period

Exercise

Price

(p)

Alex Baldock

2016 LTIP 2 Aug 2021 0 1,677,632 – – 1,677,632 2 Aug 2024 2 Aug 2031 –

2020/21 DSPB 6 Jul 2021 0 278,249 – – 278,249 6 Jul 2023 6 Jul 2031 –

2016 LTIP 19 Aug 2020 1,991,959 – – – 1,991,959 19 Aug 2023 19 Aug 2030 –

2016 LTIP 25 Jul 2019 1,737,530 – – – 1,737,530 25 Jul 2022 25 Jul 2029 –

2018/19 DSPB 25 Jul 2019 506,490 26,900

(1)

– 533,390 0 26 Jul 2021 25 Jul 2029 –

2016 LTIP 22 Jun 2018 1,197,182 68,258

(1)

598,591 666,849 0 26 Jul 2021 22 Jun 2028 –

Section 9.4. 2 3 Apr 2018 659,386 44,961

(1)

– 374,654 329,693 3 Apr 2021 3 Apr 2028 –

Total (with

performance

conditions) 5,407,121

Tota l (without

performance

conditions) 607,942

Date of grant

At 1 May

2021

Awarded in

the year

Lapsed or

forfeited in

the year

Exercised

in the year

At 30 April

2022

Date from

which first

exercisable

Expiry of the

exercise

period

Exercise

Price

(p)

Bruce Marsh

2016 LTIP 2 Aug 2021 0 803,018 – – 803,018 2 Aug 2024 2 Aug 2031 –

Section 9.4. 2 22 Oct 2021 0 410,366 – 72,693 337,673 22 Oct 2021 22 Oct 2031 –

Total (with

performance

conditions) 803,018

Tota l (without

performance

conditions) 337,673

144 Currys plc Annual Report & Accounts 2021/22

Date of grant

At 1 May

2021

Awarded in

the year

Lapsed or

forfeited in

the year

Exercised

in the year

At 30 April

2022

Date from

which first

exercisable

Expiry of the

exercise

period

Exercise

Price (p)

Jonny Mason

2020/21 DSPB 6 Jul 2021 0 153,856 – – 153,856 6 Jul 2023 6 Jan 2024 –

2016 LTIP 19 Aug 2020 1,101,436 – 774,825 – 326,611 19 Aug 2023 19 Feb 2024 –

2016 LTIP 25 Jul 2019 960,752 – 333,680 – 627,072 25 Jul 2022 25 Jan 2024 –

2018/19 DSPB 25 Jul 2019 199,494 10,959

(1)

– 210,453 0 26 Jul 2021 – –

2016 LTIP 13 Aug 2018 734,583 40,546

(1)

379,011 396,118 0 13 Aug 2021 – –

2016 LTIP 13 Aug 2018 267,121 – 267,121 – 0 13 Aug 2021 – –

Section 9.4. 2 13 Aug 2018 81,435 2,997

(1)

2,599 27,543 54,290 13 Aug 2021 13 Feb 2024 –

Total (with

performance

conditions) 953,683

Tota l (without

performance

conditions) 208,146

(1) Accrued dividend equivalents were granted on exercise of the relevant awards.

Directors’ interests in Sharesave (audited information)

Date of grant

Exercise

Price (p)

At 1 May

2021

Awarded in

the year

Lapsed or

cancelled in

the year

Exercised

in the year

At 30 April

2022

Date from

which first

exercisable

Expiry of the

exercise

period

Alex Baldock

Sharesave 28 Aug 2020 66.64 6,662 – – – 6,662 1 Oct 2025 1 Apr 2026

Sharesave 10 Sept 2019 97. 28 13,939 – – – 13,939 1 Oct 2024 1 Apr 2025

20,601 – – – 20,601

Directors’ shareholding (audited information)

The Company share ownership guidelines are designed to encourage shareholding in the Company for executive directors.

The current level of shareholding requirement for executive directors is 200% of base salary to be achieved five years from their

appointment date. On approval of the Remuneration Policy at the 2022 AGM the shareholding requirement will increase to 250%,

with executive directors having five years from this date to meet the increased shareholding requirement.

Beneficially owned shares (including any interests held by connected persons, e.g. spouse) count towards the guidelines, together with:

• unvested awards, on a ‘net-of-tax’ basis, granted under any deferred bonus arrangement or other plan/arrangement with no post-

grant performance conditions; and

• shares subject to an unexpired holding period (including any shares held under a vested but unexercised option), on a ‘net-of-tax’

basis and provided that no further performance targets must be met.

Remuneration details for 2021/22 continued

145

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Financial Statements

Investor Information

Strategic Report

Details of directors’ interests in shares of the Company as at 30 April 2022 are shown in the following table:

Scheme interests

Beneficially owned

shares (including

any interests held by

connected persons

Shares subject

to performance

conditions

Shares without

performance

conditions

Total beneficial

interests under

share ownership

guidelines

(1)

Total beneficial

share interests as a

% of salary

(2)

Executive directors

Alex Baldock 1,483,454 5,407,121 628,543 1,824,136 196%

Bruce Marsh 86,406 803,018 337,673 264,191 60%

Non-executive directors

Eileen Burbidge 4,200 – – 4,200 N/A

Tony DeNunzio

(4)

280,000 – – 280,000 N/A

Andrea Gisle Joosen 24,976 – – 24,976 N/A

Lord Livingston of Parkhead 205,631 – – 205,631 N/A

Gerry Murphy 100,000 – – 100,000 N /A

Fiona McBain 28,129 – – 28,129 N/A

(1) This figure is calculated on a ‘net of tax and commission basis’, as appropriate.

(2) The percentage is based on base salary as at 30 April 2022 and an average share price over the month to 30 April 2022 of £0.9468.

(3) Executive directors have five years from their appointment date to reach their shareholding requirement of 200%. On approval of the Remuneration Policy at the 2022

AGM the shareholding requirement will increase to 250%, with executive directors having five years from this date to meet the increased shareholding requirement.

(4) Tony DeNunzio purchased 80,000 shares on 22 July 2021. The purchase price was £1.217188 per share.

There were no changes in the directors’ share interests between 30 April 2022 and the date of this report.

Non-executive directors’ and Chair of the Board’s fees

The fees for the independent non-executive directors, including the Deputy Chair, are determined by the Board (excluding non-executive

directors) after considering external market research and are reviewed on an annual basis. Factors taken into consideration include the

required time commitment, specific experience and/or qualifications. A base fee is payable and additional fees are paid for chairing

and membership of committees. The Chair of the Board is not involved in the setting of his own salary, which is dealt with by the Committee

annually. Non-executive directors receive no variable pay and receive no additional benefits, except in situations where an executive

director becomes a non-executive director, and benefit and pension arrangements continue.

The fees for 2021/22 remain unchanged. The Chair of the Board and Deputy Chair receive all-inclusive fees reflecting their duties.

Other independent non-executive directors received a basic fee of £60,000 and additional fees as set out in the table below

for chairing or membership of committees.

2021/22

£’000

2020/21

(4)

£’000

Chair of the Board

(1)

300 300

Deputy Chair

(2)

140 140

Chair of Audit Committee

(3)

15 15

Member of Audit Committee 5 5

Member of Nominations Committee 5 5

Member of Remuneration Committee 5 5

Base Board fee 60 60

(1) The Chair of the Board’s fee includes the Nominations Committee Chair fee.

(2) The Deputy Chair’s fee includes the Senior Independent Director, the Remuneration Committee Chair fee, and the Nominations Committee member fee.

(3) The Chair of the Audit Committee fee includes a fee for attending the board meetings of the two main operating subsidiaries.

(4) Due to the impact of Covid-19, all non-executive directors agreed to a temporary 20% reduction in fees with effect from 5 April 2020 to 28 June 2020. The figures

represented do not reflect this 20% reduction, as it is temporary in nature.

Following a review in 2021/22 the Board decided to increase fee levels for the non-executive directors by 2%, effective 1 May 2022,

as detailed on page 147. This is the first increase in fees to the non-executive directors since the merger of Dixons and Carphone in

2014. The Chair of the Board and Deputy Chair waived the increase to their fees and their fees remain unchanged.

146 Currys plc Annual Report & Accounts 2021/22

How the Remuneration Policy will be applied in 2022/23

Subject to shareholder approval at the AGM in September, the Remuneration Policy arrangements for 2022/23 will be implemented

in line with the new policy.

Executive directors

i) Base salary

The following salaries will apply during the 2022/23 financial year:

Salary at 30 April 2022

£’000

% Increase in salary in

2022/23

Salary at 1 August 2022

£’000

Current Directors

Alex Baldock 880 3% 906

Bruce Marsh 415 3% 427

ii) Pension contributions

Company pension contributions or allowance in lieu of 10% of base salary will be paid to Alex Baldock. Bruce Marsh will receive a

3% pension allowance in line with the wider workforce. The Committee also confirms that Alex Baldock’s pension allowance will be

aligned with the majority of the wider workforce by the end of 2022.

iii) Annual performance bonus

The maximum annual performance bonus for 2022/23 will be 150% of base salary. Measures are selected to reflect the Group’s key

objectives and for 2022/23 the bonus will include a clawback facility in order to demonstrate the Company’s objective to reinforce

a culture of ‘Treating Customers Fairly’. A minimum EBIT threshold must be achieved before any bonus is paid out. One- third of any

bonus earned will be deferred into shares for two years after payment. The Committee feels that specific targets relating to the

2022/23 bonus scheme are commercially sensitive and as such will not be disclosed. Retrospective disclosure of the targets and

performance against them will be provided in next year’s Remuneration Report.

The performance metrics and their weightings for 2022/23 are shown in the table below:

Weighting (as a percentage of

maximum bonus opportunity)

Adjusted EBIT 45%

Average net debt 15%

ESG metrics (40%):

Customer Net Promoter Score 15%

Employee engagement 15%

Environmental to include:

- Focusing on recycling by increasing e-waste take-back 5%

- Progress to Net Zero – reducing Scope 1 and 2 emissions 5%

Recovery and withholding provisions apply for material misstatement, misconduct, calculation error, reputational damage and

corporate failure, material failure of risk management and internal controls and unreasonable failure to protect the interests of

employees and customers, enabling performance adjustments and/or recovery of sums already paid. These provisions will apply

for up to three years after payment.

iv) LTIP

In line with the Remuneration Policy approved by shareholders in 2019, the Committee intends to make an LTIP award to Alex Baldock

and Bruce Marsh shortly after the announcement of the results for the 2021/22 financial year. As in prior years, the awards will be

subject to two equally weighted performance conditions. Half of the awards will be subject to the achievement of a cumulative free

cash flow target. The remaining half will be subject to the achievement of a relative TSR performance condition, measured against

the FTSE 250 comparator group. The Committee is mindful of the current volatility in the market and ensuring LTIP awards are aligned

with shareholder experience. As at the date of this report, the Committee has not yet finalised the decisions on LTIP award levels

(within the Policy limits) or the calibration of applicable free cash flow targets. We will confirm the conditions and make the awards

after we have announced our annual results, to ensure that we have targets in place that are both stretching for participants and

also fully reflective of how shareholders and the market view the long-term performance of the business. We will fully disclose the

award details and targets at the time of the grant announcement and also include them in next year’s Remuneration Report.

These awards will vest after three years based on continued service and will be subject to a further two-year post-vesting holding period,

during which the executive director is not permitted to sell any shares vesting, other than those required to settle any tax obligations.

Awards will be subject to recovery and withholding provisions for material misstatement, misconduct, calculation error, reputational

damage and corporate failure, material failure of risk management and internal controls and unreasonable failure to protect the

interests of employees and customers, enabling performance adjustments and/or recovery of sums already paid. These provisions

will apply for up to three years after vesting.

Remuneration details for 2021/22 continued

147

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Investor Information

Strategic Report

v) Non-executive directors’ and Chair of the Board’s fees

As discussed on page 145, following a review in 2021/22 the Board decided to increase fee levels for the non-executive directors by

2%, effective 1 May 2022. This is the first increase in fees to the non-executive directors since the merger of Dixons and Carphone in 2014.

The basic fee of £60,000 therefore increases to £61,200 and the increase in additional fees for chairing or membership of committees

is set out below. The Chair of the Board and Deputy Chair waived the increase to their fees and their fees remain unchanged.

As announced in May 2022, we are pleased to confirm the appointment of Ian Dyson to succeed Ian Livingston as Chair of the

Board. Ian Dyson will join the Board as a Non-Executive Director on 1 September 2022 and will become Chair of the Board and

Nominations Committee following the AGM on 8 September 2022, with Ian Livingston stepping down from the Board on that date.

There will be no change to the annual Chair of the Board’s fee, remaining at £300,000.

2022/23

£’000

% Increase

effective 1 May

2022

2021/22

£’000

Chair of the Board

(1)

300 – 300

Deputy Chair

(2)

140 – 140

Chair of Audit Committee

(3)

15.3 2% 15

Member of Audit Committee 5.1 2% 5

Member of Nominations Committee 5.1 2% 5

Member of Remuneration Committee 5.1 2% 5

Base Board fee 61.2 2% 60

(1) The Chair of the Board’s fee includes the Nominations Committee Chair fee.

(2) The Deputy Chair’s fee includes the Senior Independent Director, the Remuneration Committee Chair fee, and the Nominations Committee member fee.

(3) The Chair of the Audit Committee fee includes a fee for attending the board meetings of the two main operating subsidiaries.

Statement of voting at shareholder meetings

The Company is committed to ongoing shareholder dialogue in respect of directors’ remuneration and takes an active interest in

voting outcomes. Where there are substantial votes against resolutions, explanatory reasons will be sought, and any actions in

response will be communicated to shareholders.

The following table sets out the voting results in relation to the approval of the Remuneration Policy when it was last put to

shareholders at the annual general meeting 2019:

Resolution Votes for % Votes against % Withheld

Approval of Directors’ Remuneration Policy 831,610,451 89.26 100,031,252 10.74 33,572,688

The following table sets out the voting results in relation to the Annual Remuneration Report resolution put to the annual general meeting 2021:

Resolution Votes for % Votes against % Withheld

Approval of annual remuneration report 855,375,711 92.78 66,608,140 7. 22 174,7 70

Advice

The Committee retained Willis Towers Watson throughout 2021/22 as independent advisors. Willis Towers Watson, who were appointed

by the Committee in 2020 following a competitive tender process, are engaged to provide advice to the Committee and to work with the

directors on matters relating to the Group’s executive remuneration and its long-term incentives. They are members of the Remuneration

Consultants Group and operate under its code of conduct in relation to the provision of executive remuneration advice in the UK and have

confirmed that they adhered to the Code during 2021/22 for all remuneration services provided to the Group. Willis Towers Watson received

fees of £109,350 (2020/21: £74,745) in relation to the provision of those services. Fees are charged on a time and expenses basis. During the

year, Willis Towers Watson also provided other ad hoc remuneration services outside the scope of the Committee to the Company.

Compliance

As required by the Regulations, resolutions to approve the new Remuneration Policy and this Remuneration Report will be proposed

at the AGM 2022.

Tony DeNunzio CBE

Chair of the Remuneration Committee

6 July 2022

148 Currys plc Annual Report & Accounts 2021/22

Statement of

directors’ responsibilities

Company law requires the directors to prepare financial

statements for each financial year. Under that law, the directors

are required to prepare the consolidated financial statements

in accordance with UK-adopted international accounting

standards and applicable UK law. The consolidated financial

statements are also prepared in accordance with IFRS as issued

by the International Accounting Standards Board. The directors

have also elected to prepare the Company financial statements

in accordance with Financial Reporting Standard 101 ‘Reduced

Disclosure Framework’. Under company law, the directors must

not approve the accounts unless they are satisfied that they

give a true and fair view of the state of affairs of the Company

and the Group and of the profit or loss of the Company and the

Group for that period.

In preparing the Company financial statements, the directors

are required to:

• select suitable accounting policies and then apply them

consistently;

• make judgements and accounting estimates that are

reasonable and prudent;

• state whether Financial Reporting Standard 101 ‘Reduced

Disclosure Framework’ has been followed, subject to any

material departures disclosed and explained in the financial

statements; and

• prepare the financial statements on the going concern basis

unless it is inappropriate to presume that the Company will

continue in business.

In preparing the consolidated financial statements, IAS 1:

‘Presentation of Financial Statements’ requires that directors:

• properly select and apply accounting policies;

• present information, including accounting policies, in a

manner that provides relevant, reliable, comparable and

understandable information;

• provide additional disclosures when compliance with the

specific requirements in IFRS are insufficient to enable users to

understand the impact of particular transactions, other events

and conditions on the Group’s financial position and financial

performance; and

• make an assessment of the Group’s ability to continue as a

going concern.

The directors are responsible for keeping adequate accounting

records that are sufficient to show and explain the Company’s

transactions and disclose with reasonable accuracy at any

time the financial position of the Company and the Group and

enable them to ensure that the financial statements comply

with the Companies Act 2006. They are also responsible for

safeguarding the assets of the Company and the Group and

hence for taking reasonable steps for the prevention and

detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity

of the corporate and financial information included on the

Group’s website. Legislation in the UK governing the preparation

and dissemination of financial statements may differ from

legislation in other jurisdictions.

Responsibility statement

We confirm that to the best of our knowledge:

• the financial statements, prepared in accordance with the

relevant financial reporting framework, give a true and fair

view of the assets, liabilities, financial position and profit or

loss of the Company and the undertakings included in the

consolidation taken as a whole;

• the Strategic Report includes a fair review of the development

and performance of the business and the position of the

Company and the undertakings included in the consolidation

taken as a whole, together with a description of the principal

risks and uncertainties that they face; and

• the Annual Report and Accounts, taken as a whole, are fair,

balanced and understandable and provide the information

necessary for shareholders to assess the Group and the

Company’s performance, business model and strategy.

By Order of the Board

Alex Baldock

Group Chief

Executive

6 July 2022

Bruce Marsh

Group Chief

Financial Officer

6 July 2022

The directors are responsible for preparing the annual report and the financial statements

in accordance with applicable law and regulations.

149

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Strategic Report

Independent Auditor’s Report to the Members of Currys plc

(Formerly known as Dixons Carphone plc)

Report on the audit of the financial statements

1. Opinion

In our opinion:

• the financial statements of Currys plc (the ‘parent company’) and its subsidiaries (the ‘Group’) give a true and fair view of the

state of the Group’s and of the parent company’s affairs as at 30 April 2022 and of the Group’s profit for the year then ended;

• the Group financial statements have been properly prepared in accordance with United Kingdom adopted international

accounting standards;

• the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted

Accounting Practice, including Financial Reporting Standard 101 “Reduced Disclosure Framework”; and

• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:

• the consolidated income statement;

• the consolidated statement of comprehensive income;

• the consolidated and parent company balance sheets;

• the consolidated and parent company statements of changes in equity;

• the consolidated cash flow statement; and

• the related notes 1 to 32 of the Group financial statements and notes C1 to C9 of the parent company financial statements.

The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law,

United Kingdom adopted international accounting standards. The financial reporting framework that has been applied in the

preparation of the parent company financial statements is applicable law and United Kingdom Accounting Standards, including

FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice).

2. Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our

responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements

section of our report.

We are independent of the Group and the parent company in accordance with the ethical requirements that are relevant to our audit

of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed

public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit

services provided to the Group and parent company for the year are disclosed in note 3 to the financial statements. We confirm that

we have not provided any non-audit services prohibited by the FRC’s Ethical Standard to the Group or the parent company.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

150 Currys plc Annual Report & Accounts 2021/22

3. Summary of our audit approach

Key audit matters The key audit matters that we identified in the current year were:

• revenue recognition – valuation of UK network receivables;

• impairment of UK capitalised development costs;

• impairment of UK & Ireland goodwill;

• tax provisioning; and

• UK deferred tax asset recoverability.

Within this report, key audit matters are identified as follows:

Newly identified

Increased level of risk

Similar level of risk

Decreased level of risk

Materiality The materiality that we used for the Group financial statements was £10.5m (FY20/21: £10.5m). Consistent with

the prior year, this was determined on the basis of considering a number of different metrics used by investors

and other users of the financial statements. These included adjusted profit before tax, net assets and revenue.

For further details refer to section 6 of this report.

Scoping Our full scope audit procedures provided coverage at the Group’s key locations, being the retail operations

in the UK and Nordics, representing 95% of the Group’s revenue.

Significant changes

in our approach

There have been developments during the period in respect of provisioning for uncertain tax positions. As such

the extent of our audit procedures in respect of this audit matter has increased compared to the previous

period. We have therefore identified this as a key audit matter in the current period.

We have identified a key audit matter in respect of the recoverability of deferred tax assets relating to UK

losses carried forward. The recoverability of the deferred tax asset is based on a number of forward-looking

assumptions. This is an inherently judgemental area and small changes in these assumptions can have a

significant impact on the level of deferred tax recognised on the balance sheet.

We continue to identify a key audit matter in respect of the impairment of UK and Ireland goodwill. However,

we have revised our impairment key audit matter to no longer include store assets. Whilst there remains potential

uncertainty, the store assets are less exposed to the current challenges in the macro-economic climate when

compared to the online business and so the level of associated judgement has decreased.

We have refined our key audit matter relating to impairment of UK & Ireland assets in the course of

construction to focus on the completeness of impairments recognised in respect of development costs that

have historically been capitalised. This reflects the increased level of management judgement required as a

result of recent strategic changes made by the Group and the broader macro-economic conditions in which

the Group operates.

Independent Auditor’s Report continued

151

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Investor Information

Strategic Report

4. Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the

preparation of the financial statements is appropriate.

Our evaluation of the directors’ assessment of the Group’s and parent company’s ability to continue to adopt the going concern

basis of accounting included:

• consideration of the nature of the Group, its business model and related risks, the requirements of the applicable financial

reporting framework and the system of internal control;

• evaluation of the underlying data and key assumptions used, such as forecast revenue and operating costs, against historical

and forward looking data;

• evaluation of the directors’ plans for future actions in relation to their going concern assessment;

• evaluation of mitigations in place and further mitigations available to the Group beyond those included within the forecast.

This included challenging the extent to which these mitigations are within the control of management in the context of historical

performance and costs included in management’s underlying forecasts;

• assessment of the Group’s financing agreements, covenant calculations and forecast covenant compliance over the relevant

outlook period; and

• assessment of the appropriateness of the going concern disclosures in the financial statements.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,

individually or collectively, may cast significant doubt on the Group’s and parent company’s ability to continue as a going concern

for a period of at least twelve months from when the financial statements are authorised for issue.

In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material to add

or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it

appropriate to adopt the going concern basis of accounting.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections

of this report.

5. Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial

statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to

fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation

of resources in the audit; and directing the efforts of the engagement team.

These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,

and we do not provide a separate opinion on these matters.

152 Currys plc Annual Report & Accounts 2021/22

5.1. Revenue recognition – Valuation of UK network receivables

Key audit matter

description

The Group sells mobile phone contracts on behalf of mobile operators. There is significant management

judgement in the valuation of gross network commission receivables and contract assets of £281m (2020/21:

£405m), being commission for which there is a contractual entitlement based on mobile phone connections

already made, and for which there are no ongoing performance obligations.

Included within the gross value are contract assets of £175m (2020/21: £207m). These are recognised where the

performance obligations have been met but the quantum of consideration from the customer is variable due

to factors other than the passage of time. The valuation of these assets is based on management’s estimate

of the extent to which it is highly probable that recognised revenue will not be subject to a material reversal

in the future.

As described in note 14, the valuation of the expected receivable is determined by four assumptions:

• the forecast customer default rate within the contract period;

• the forecast rate of customer renewals with the same network provider;

• the expected customer behaviour beyond the initial contract period (the propensity of customers to ‘sleep’);

and

• the expected level of customer spend in excess of their current contracted amount (known as ‘out of bundle’

spend).

We considered that there was a high level of risk related to the valuation of contract assets in the determination

of the assumptions in relation to the customer default rate, customer renewals and the number of customers who

‘sleep’. This is on the basis that small changes in these assumptions could have a material impact on the value of

the debtor. Due to the level of judgement involved, we have determined that there is potential for manipulation

of this balance by management.

These assumptions influence the level of network commission revenue that the Group recognises. A change in

these assumptions can also lead to the adjustment of revenue that has been recognised in prior periods. In

determining these assumptions the Group considers historical activity by customers and operators and makes

an assessment as to how this activity will change in the future, taking into account other factors such as new

regulations and the macro-economic conditions. These future variations can be influenced by external factors,

including customer behaviour, operator behaviour and changes to market regulations.

The current year revenue includes an out-of-period revaluation gain of £22m (2020/21: £14m) as set out in

note 14(iv). In addition, the Group has also recognised £11m (2020/21: £6m) in relation to an uplift in the profit

share the Group receives as a result of updating for the changes in Retail Price Index (RPI) in the period, and

income of £10m (2020/21: expense of £17m) in respect of settlements with Mobile Network Operators that

have been reached in the year but relate to prior period transactions. These two transactions result in income

of £21m (2020/21: expense of £11m) and further detail is provided in note 14(v).

As described in note 3 to the Group financial statements, remeasurements of prior period assumptions due

to changes in consumer behaviour, or where more recent information becomes available, are recognised as

revenue in the income statement. Any changes in prior period assumptions, and their consequential impact on

revenue, are eliminated from the Group’s adjusted profit before tax; this is an alternative performance measure,

which can be found in Appendix A5 on page 236. The key judgements and estimates involved are described in

more detail in the Audit Committee report on page 104, in the key sources of estimation uncertainty disclosed i

n note 1(d) and in note 14 to the Group financial statements.

Independent Auditor’s Report continued

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How the scope

of our audit

responded to the

key audit matter

We obtained an understanding of the management review control of the key assumptions used to determine

the UK network receivables balance.

We assessed the valuation of revenue recognised through review of the contractual agreements, comparison

of data used by management to data submitted by the mobile operators, and assessed the reasonableness

of the key assumptions. We challenged:

• the forecast customer default rate by comparison to the actual rates of default seen in the latest data from

the networks and default rates observed in external market data;

• the forecast rate of customer renewals with the same network provider by comparison to the latest renewals

data from the network operators and with reference to other external market data; and

• the expected customer behaviour beyond the initial contract period by comparison to actual rates of

customers continuing their contract after their fixed contract term and with reference to external market data.

In addition, we analysed existing and forthcoming changes in regulation and the wider macro-economic

environment. We considered whether these could lead to behavioural changes which would impact the amount

of revenue recognised in the current year. Specifically, we considered expected behavioural changes relating

to evolving trends in the macro-economic environment, such as the increasing cost of living in the UK and how

that may influence consumer behaviour, and challenged the quantum of constraint applied to the contract

asset recognised at the year end. We considered whether management’s assumptions in respect of the impact

of possible behavioural changes and the resulting impact on the valuation of the UK network receivables

balance were reasonable.

We assessed the changes in assumptions in relation to the revenue recognised for current year connections

between consumers and operators, and in relation to revenue recognised in previous accounting periods. In

doing so we assessed whether the amount of revenue recognised in each circumstance is consistent with the

disclosure in note 14. We assessed the adequacy of the disclosures relating to the treatment of out of period

revaluations as an adjusting item in the reconciliation of adjusted profit before tax, an alternative performance

measure.

Key observations We consider the treatment adopted in relation to the valuation of the UK network commission receivable and

the related assumptions applied by management to be appropriate.

We agree that the disclosures relating to network commissions, summarised in note 14, provide an appropriate

understanding of the estimates taken by management and how changes in these estimates have influenced

the total revenue recognised from network commissions in the year.

5.1. Revenue recognition – Valuation of UK network receivables continued

154 Currys plc Annual Report & Accounts 2021/22

5.2. Impairment of UK capitalised development costs

Key audit matter

description

The Group invests significant amounts in both tangible and intangible assets in order to develop the Group’s

asset base to meet their strategic priorities. Since 1 May 2018, £376m of software and licenses intangible assets

has been capitalised. These projects are typically multiyear and therefore significant capitalised development

costs are held on the balance sheet.

During the year, and following a review of the Group’s mobile strategy, a £32m impairment charge was

recognised in relation to intangible assets, related to software development costs, as described in note 9 to

the financial statements. The cumulative impairments to Software and Licenses intangible assets recognised

following strategic changes since 1 May 2018 is £79m. Given the recent strategic changes in the business, and

subsequent asset impairments recognised, there remains a risk that there are assets held on the balance sheet

relating to previous key strategic projects which will not deliver value for the Group. Where the business case

is no longer viable, an impairment of the corresponding asset value is recorded. Given that the major strategic

projects were initiated in April 2018, we identified a risk that, whether due to fraud or error, further impairment

charges should be recognised against development costs capitalised since that date.

Further information in this area is discussed in the Audit Committee report on page 104 and in note 9 to the

Group financial statements.

How the scope

of our audit

responded to the

key audit matter

We obtained an understanding of relevant controls relating to management review of the assets in the fixed

asset register and associated business approval controls.

For a sample of the largest and most aged projects, as well as any impaired strategic projects with remaining

value, we have obtained the investment cases prepared by management and assessed whether there

continues to be a valid rationale to continue to hold the asset or whether some or all of the asset value

required impairment. We challenged the viability of each of these projects with reference to the evolved

strategy of the Group. In performing this procedure we made enquiries of management and members of the

Executive Committee to further understand each project. This included discussions with the project owners in

order to understand the value the Group could derive from the project and the ability and intention of the

Group to complete it.

We have reviewed assets capitalised over the prior three financial periods to assess the completeness of

impairments relating to key strategic projects where other previously capitalised costs may have a connection

to ceased strategies and therefore no longer deliver an economic benefit to the Group. This included

performing an assessment of the additions to assets under construction to evaluate whether the projects

continued to deliver in line with the business case approved at that time. Where impairments have arisen in

the year, we have understood why the project costs have been written-off and challenged management on

whether this constitutes a prior period error.

Key observations We concur with management’s conclusion that the impairment recognised in the year is appropriate. We did not

identify any further assets that required impairment based on the Group’s current strategic priorities.

Independent Auditor’s Report continued

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5.3. Impairment of UK&I goodwill

Key audit matter

description

£1,840m of goodwill arising from the legacy merger of Dixons and Carphone is reviewed by management for

impairment within the UK&I group of cash generating units (CGUs). As set out in note 8(b) to the Group financial

statements, management assesses the recoverable amount of the Group of CGUs by calculating its value in

use using projections covering a three-year period. These projections are determined by probability-weighting

different medium term projections based on Board approved forecasts and additional downside scenarios

that take account of the risks presented by current and potential economic trading conditions. Following their

impairment review, management did not identify any impairment of goodwill being required.

There is judgement required by management in determining forecast cash flows, particularly in respect of the

later and terminal years of their three-year period projections. There has been a downturn in trading results

between the year-end date and the signing date of the financial statements. This is largely driven by the drop in

performance of the online business. Given this performance, there is a heightened risk that future performance

could adversely deviate from the projections used for the purposes of assessing the impairment judgement in

respect of the UK&I goodwill.

As disclosed in note 8 a reasonably possible change in management’s forecast annual operating profit

throughout the assessment period would result in headroom of the UK&I combined groups of CGUs being

eroded to nil. There is uncertainty in the assumptions underlying these forecasts, particularly in respect of

forecast EBIT margin. Management has included a key source of estimation uncertainty in note 1(d), and

provided associated sensitivity disclosures in respect of the UK&I group of CGUs as set out in note 8 to the

financial statements.

Further information in this area is discussed in the Audit Committee report on page 104 and in note 8 to the

Group financial statements.

How the scope

of our audit

responded to the

key audit matter

We have completed the following procedures in respect of goodwill impairment:

• obtained an understanding of relevant controls relating to the review and approval of the impairment

reviews;

• tested the mechanical accuracy of the value in use models and cash flow forecasts and assessed whether

the methodology used in determining the recoverable amount is consistent with IAS 36 Impairment of Assets;

• challenged the key assumptions used by management in the impairment reviews through comparison to

historical performance and external evidence. In particular, we challenged management in respect of the

forecast improvement in operating profit. We assessed this by:

– challenging management on the key reconciling items that bridge between the EBIT margin generated

in the current and prior periods to the EBIT margin that is forecast over the term of the strategic plan and

into perpetuity;

– considering the reasonableness of management’s short term cash flow forecasts, including cost savings

which forms a key part of management’s value in use model. We assessed whether the Group was

committed to these plans to the extent that the cost savings can be included in an impairment assessment

under IAS 36; and

– evaluating management’s assessment of the sensitivity to forecast EBIT margin required to indicate an

impairment. We compared the breakeven EBIT margin to the margins achieved by comparator companies,

the Nordics operating segment and historically in the UK Electricals business.

• challenged the reasonableness of management’s forecast revenue and profit growth assumptions

including an assessment in the context of the latest trading results of the business. This included evaluating

management’s downside scenarios and whether the value in use model represented management’s best

estimate of the forecast profitability of the UK&I group of CGUs;

• challenged management’s rationale for the premium of the net assets of the Group above the market

capitalisation of the Group by evaluating the reconciling amounts in management’s analysis;

• assessed the completeness of assets being included in the asset base and the appropriateness of any

liability balances included by management; and

• assessed the completeness and accuracy of disclosures against the requirements of IAS 1 and IAS 36

respectively.

Key observations We considered that the related disclosures appropriately summarise the uncertainties associated with

management’s impairment reviews. We concur with management’s conclusion that no impairment of goodwill

is required.

156 Currys plc Annual Report & Accounts 2021/22

5.4 Tax provisioning

Key audit matter

description

The nature of the Group’s historical operations and related transactions can give rise to uncertain tax

treatments, thereby requiring the use of estimates and assumptions which may be subsequently challenged by

the relevant tax authorities. In some instances, the Group has recognised a provision or disclosed a contingent

liability in relation to certain historical treatments.

The Group is currently engaged with HMRC in relation to open tax enquiries arising from pre-merger legacy

corporation transactions associated with the former Carphone Warehouse Group. As set out in note 31 and

note 1d, in respect of these enquiries, the Group has disclosed a potential range of unprovided tax exposures

in respect of one of these enquiries of £nil to £214m, excluding penalties and interest. Interest on the top end of

this range would amount to approximately £61m up to 30 April 2022 and any penalties could be up to 30% of

the principal tax amount. We identified a key audit matter relating to the judgement that this enquiry represents

a contingent liability, and to the accuracy of the disclosed potential range of tax exposure.

In reaching this conclusion management have been advised by a number of third-party experts with a

specialism in tax law. These specialists have reviewed the individual circumstances of the case and reviewed

relevant correspondence in order to assess the likelihood of success in this case.

Further information in this area is discussed in the Audit Committee report, in the key sources of estimation

uncertainty disclosed in note 1d and in note 31 to the Group financial statements.

How the scope

of our audit

responded to the

key audit matter

In responding to the identified key audit matter we completed the following audit procedures:

• obtained an understanding of the relevant controls over management’s review of the technical tax

accounting papers, which summarise the latest correspondence and meetings with HMRC in respect of the

High Risk Corporates Programme investigation and latest advice from management’s external advisors in

respect of the probable outcome of each matter;

• working with our internal tax specialists, we evaluated and assessed management’s assumptions in respect of

this matter. This included an assessment against local tax legislation and review of supporting documentation

prepared by management and their advisors. In assessing the disclosures we have considered the tax

environment in which the Group operates, the outcome of past settlements and the status of matters being

discussed with tax authorities; and

• working with our specialists we also held discussions with, and assessed the competency, capabilities and

objectivity of, management’s experts who have assisted the Group in their determination of the likelihood of

the Group’s success in this matter and the extent of any amount that could become payable if they are not.

Key observations We concur with the directors’ judgement that this matter represents a contingent liability and that the disclosure

is appropriate, as set out in note 31.

5.5 UK deferred tax asset recoverability

Key audit matter

description

The valuation of the net UK deferred tax asset (‘DTA’),£61m at 30 April 2022 (1 May 2021: £86m), is subject to

management estimation, particularly in respect of forecast taxable profits within the UK. As set out in Note 6

to the financial statements, and in line with IAS 12 Income Taxes, management recognise deferred tax assets

to the extent that it is probable that they will be utilised against future profits. In estimating the balance at the

30 April 2022, management’s assessment is based on the forecast profitability of the UK business per the board

approved three year projections.

There is judgement required by management in determining forecast cash flows, particularly in respect of the

later and terminal years of their three-year projection periods. The FY23 trading results to date in the UK are

down on the comparative period. Given this performance, there is a heightened risk that future performance

could adversely deviate from the projections used for the purposes of assessing the value of the DTA.

As disclosed in note 1d, a reasonably possible change in assumptions underlying the Board approved

projections could result in a change in the UK deferred tax asset that is recognised within the next year.

Therefore, the valuation of the UK deferred tax asset has been disclosed by management as a key source of

estimation uncertainty. Management has modelled different scenarios to assess the impact on the deferred

tax asset and, based on these, the deferred tax asset could range from £52m to £68m.

Independent Auditor’s Report continued

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5.5 UK deferred tax asset recoverability continued

How the scope

of our audit

responded to the

key audit matter

We have completed the following procedures in respect of the valuation of the UK deferred tax asset:

• obtained an understanding of the controls over the processes for the recognition and measurement of UK DTAs;

• challenged management’s assumptions and estimates to support the recognition of the net UK deferred tax

asset with reference to forecast taxable profits. Our challenge of management’s forecast profitability in the

UK is described in further detail above within the UK&I goodwill impairment key audit matter procedures;

• involved our tax specialists to assess the methodology adopted by management against the requirements

of IAS 12 Income Taxes;

• verified the mathematical and logical accuracy of the DTA model;

• evaluated the range of sensitised outcomes determined by management against the latest trading results

and management’s historical forecasting accuracy;

• assessed the valuation of the UK DTA against our own independent range of reasonable estimates;

• tested the accuracy of the underlying data within the UK DTA model by comparison to the board approved

forecasts and audited UK ledgers; and

• assessed the adequacy of disclosures in the financial statements in relation to deferred tax assets, and the

respective sensitivity disclosures provided.

Key observations We consider that the key source of estimation uncertainty disclosure and related sensitivities set out in note 1(d)

appropriately summarise the uncertainties associated with the recoverability of the deferred tax asset. While

overall we were satisfied with the valuation of the deferred tax asset, we reported to the directors that we

considered, in our judgement, recording a deferred tax asset towards the lower end of the range disclosed

would be more appropriate.

6. Our application of materiality

6.1. Materiality

We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions

of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of our audit

work and in evaluating the results of our work.

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:

Consolidated financial statements Company financial statements

Materiality £10.5m (2020/21: £10.5m) £10.0m (2020/21: £10.0m)

Basis for

determining

materiality

We considered the following metrics:

• Adjusted profit before tax (see note A5);

• Net assets; and

• Revenue.

Using professional judgement, we determined

materiality to be £10.5m (2020/21: £10.5m).

Materiality for the current year represents 6.9% of

adjusted profit before tax (2020/21: 8.6%), 0.15% of

total assets (2020/21: 0.15%) and 0.10% of revenue

(2020/21: 0.12%).

This approach is consistent with the prior year.

Company materiality is determined as a percentage

of net assets and capped at 95% (2020/21: 95%) of

Group materiality. Determined company materiality

equates to 0.38% (2020/21: 0.36%) of net assets.

Rationale for the

benchmark applied

In determining our benchmark for materiality, we

considered a number of different metrics used by

investors and other users of the financial statements.

Net assets was selected as an appropriate benchmark

for determining materiality, as the Company acts as a

holding company.

158 Currys plc Annual Report & Accounts 2021/22

6.2. Performance materiality

We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and

undetected misstatements exceed the materiality for the financial statements as a whole.

Group financial statements Parent company financial statements

Performance

materiality

65% (2019/20: 70%) of group materiality 70% (2020/21: 65%) of parent company materiality

Basis and rationale

for determining

performance

materiality

In the prior period we reduced performance materiality as a percentage of materiality from 70% to 65% to

respond to the potential impact of the Covid-19 pandemic on the Group’s control environment of remote

working and the associated increased in risk of control failures and error. In the current period we have revised

performance materiality as a percentage of materiality back to 70%. In determining performance materiality,

we considered the following factors:

a. the judgements taken by management and the associated disclosures;

b. our risk assessment, including our assessment of the Group’s overall control environment and our reliance

on controls in the Nordics business; and

c. our past experience of the audit, including the profit impacting misstatements identified in prior periods

and management’s willingness to correct any misstatements identified.

6.3. Error reporting threshold

We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of £0.5m (2020/21:

£0.5m), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to

the Audit Committee on disclosure matters that we identified when assessing the overall presentation of the financial statements.

7. An overview of the scope of our audit

7.1. Identification and scoping of components

Our Group audit was scoped by obtaining an understanding of the Group and its environment, including group-wide controls,

and assessing the risks of material misstatement at the Group level. Based on that assessment, we focused our Group audit scope

primarily on the audit work of the significant components, being the retail operations in the UK and the Nordics, which is consistent

with the previous year. Each of these components requires a local statutory audit.

In addition to the significant components, we have considered specific balances and classes of transactions included in other

components of the Group and performed specified procedures where these balances and classes of transactions present a risk

of material misstatement for the Group. Each location was selected to provide an appropriate basis for undertaking audit work

to address the risks of material misstatement identified above.

These significant components and specified procedure components represent the principal business units and account for

approximately 95% of the Group’s revenue from continuing operations (2020/21: 94%). Our audit work at these locations was

executed at levels of materiality applicable to each individual entity which were lower than Group materiality and ranged from

£5.2m to £10.0m (2020/21: £5.3m to £9.9m).

At the Currys plc Group level we also tested the consolidation process and carried out analytical procedures to confirm our

conclusion that there were no significant risks of material misstatement of the aggregated financial information of the remaining

components not subject to audit or audit of specified account balances.

7.2. Our consideration of the control environment

Currys plc is reliant on the effectiveness of a number of IT applications and controls so that financial transactions are processed

and recorded completely and accurately.

UK control environment

We involved our IT specialists to obtain an understanding of the relevant general IT controls. Due to the IT deficiencies identified in

prior years, we did not plan to rely on the relevant controls over a number of operating cycles as these rely on automated controls.

We tested and relied upon the operating effectiveness of controls associated with the Currys supplier funding operating cycle,

as this does not rely upon IT controls that were subject to the deficiencies noted above.

As a result of the IT deficiencies identified in the prior and current years, we completed additional substantive procedures. Whilst,

for audit purposes, the additional procedures performed mitigated the risk presented by the deficiencies, management is in the

course of performing further activities in order to stabilise the Group’s IT infrastructure.

Independent Auditor’s Report continued

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7.2. Our consideration of the control environment continued

General IT controls continue to be a focus area for management and the Audit Committee. Further information is set out in the risk

management and internal control section of the Audit Committee report on page 105.

Nordics control environment

In the Nordics, we relied upon controls across the following operating cycles: inventory, supplier funding, cash, property, plant &

equipment, trade payables, revenue and cost of goods sold.

We tested and relied upon the relevant controls of two finance systems associated with these operating cycles. IT deficiencies were

identified in our testing of these finance systems. For the purposes of the audit, we performed additional procedures to mitigate the risk

presented by the deficiencies. Management is in the course of enhancing the IT infrastructure in order to address these deficiencies.

7.3. Our consideration of climate-related risks

As a part of our audit procedures, we have obtained management’s climate-related risk assessment and held discussions with

management to understand the process of identifying climate-related risks, the determination of mitigating actions and the impact

on the Group’s financial statements. The results of management’s risk assessment process are described in further detail within the

Sustainability section of the Annual Report on page 57. No impact on judgements and estimates within the financial statements was

identified by management as a result of this process.

We performed our own qualitative risk assessment of the potential impact of climate change on the Group’s account balances and

classes of transaction and did not identify any additional reasonably possible risks of material misstatement. Our procedures included

reading disclosures included in the Strategic Report to consider whether they are materially consistent with the financial statements and

our knowledge obtained in the audit. We have not been engaged to provide assurance over the accuracy of these disclosures.

7.4. Working with other auditors

The same audit team is responsible for both the Group and UK component audit work.

The Group audit team engaged a component audit team from Deloitte Norway to perform an audit of the Nordics sub-consolidation.

The Group audit team held regular communication with the component auditor ahead of and during the year end audit process.

Oversight of the component audit team included reviewing the audit work of the component audit team.

For the year ended 30 April 2022 members of the Group audit team, including the Group engagement partner, visited the component

audit team in Oslo, where the Nordics business is headquartered. Additionally, the lead audit partner separately met with the CFO

of the Nordics business.

8. Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s

report thereon. The directors are responsible for the other information contained within the annual report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated

in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent

with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.

If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise

to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there

is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

9. Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial

statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is

necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group’s and the parent company’s ability

to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of

accounting unless the directors either intend to liquidate the Group or the parent company or to cease operations, or have no

realistic alternative but to do so.

160 Currys plc Annual Report & Accounts 2021/22

10. Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a

high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:

www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

11. Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our

responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which

our procedures are capable of detecting irregularities, including fraud is detailed below.

11.1. Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws

and regulations, we considered the following:

• the nature of the industry and sector, control environment and business performance including the design of the Group

remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;

• results of our enquiries of management, internal audit and the audit committee about their own identification and assessment

of the risks of irregularities;

• any matters we identified having obtained and reviewed the Group’s documentation of their policies and procedures relating to:

– identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

– detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

– the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and

• the matters discussed among the audit engagement team including significant component audit teams and relevant internal

specialists, including fraud, tax, valuations, pensions, IT, and industry specialists regarding how and where fraud might occur in

the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and

identified the greatest potential for fraud in the following areas: valuation of UK network receivables, impairment of UK capitalised

development costs and supplier funding. In common with all audits under ISAs (UK), we are also required to perform specific

procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions

of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial

statements. The key laws and regulations we considered in this context included the UK Companies Act, Listing Rules, pension

legislations, tax legislations and FCA regulations.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements

but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included

the Group’s health and safety, insurance selling and environmental regulations.

11.2. Audit response to risks identified

As a result of performing the above, we identified the valuation of UK network receivables as a key audit matter related to the

potential risk of fraud. The key audit matters section of our report explains the matter in more detail and also describes the specific

procedures we performed in response to this key audit matter.

In addition to the above, our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of

relevant laws and regulations described as having a direct effect on the financial statements;

• reviewing management’s identification of adjusting items, which are included as key performance indicators in the narrative of the

annual report. We have considered management’s policy for recognising items as adjusting, and challenged the categorisation of

these items against the disclosed group policy.

• enquiring of management, the audit committee and external legal counsel concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material

misstatement due to fraud;

• reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence

with HMRC;

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11.2. Audit response to risks identified continued

• assessing the valuation of UK and Nordics supplier funding related accruals that require the most significant level of management

judgement. Our procedures included obtaining a sample of management’s direct confirmations with certain suppliers; and

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other

adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and

evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including

internal specialists and significant component audit teams, and remained alert to any indications of fraud or non-compliance with

laws and regulations throughout the audit.

Report on other legal and regulatory requirements

12. Opinions on other matters prescribed by the Companies Act 2006

In our opinion the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the

Companies Act 2006.

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the strategic report and the directors’ report for the financial year for which the financial statements

are prepared is consistent with the financial statements; and

• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course

of the audit, we have not identified any material misstatements in the strategic report or the directors’ report.

13. Corporate Governance Statement

The Listing Rules require us to review the directors’ statement in relation to going concern, longer-term viability and that part of the

Corporate Governance Statement relating to the Group’s compliance with the provisions of the UK Corporate Governance Code

specified for our review.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate

Governance Statement is materially consistent with the financial statements and our knowledge obtained during the audit:

• the directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material

uncertainties identified set out on page 65;

• the directors’ explanation as to its assessment of the Group’s prospects, the period this assessment covers and why the period

is appropriate set out on page 65;

• the directors’ statement on fair, balanced and understandable set out on page 148;

• the board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 65;

• the section of the annual report that describes the review of effectiveness of risk management and internal control systems

set out on page 58; and

• the section describing the work of the audit committee set out on page 100.

14. Matters on which we are required to report by exception

14.1. Adequacy of explanations received and accounting records

Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not received all the information and explanations we require for our audit; or

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been

received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns.

We have nothing to report in respect of these matters.

14.2. Directors’ remuneration

Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of directors’ remuneration

have not been made or the part of the directors’ remuneration report to be audited is not in agreement with the accounting records

and returns.

We have nothing to report in respect of these matters.

162 Currys plc Annual Report & Accounts 2021/22

Independent Auditor’s Report continued

15. Other matters which we are required to address

15.1. Auditor tenure

Following the recommendation of the Audit Committee, we were appointed by the Board on 31 July 2003 to audit the financial

statements of the Group for the year ending 29 March 2003 and subsequent financial periods. The period of total uninterrupted

engagement as the Group auditors, including previous renewals and reappointments of the firm is 20 years, covering the years ending

29 March 2003 to 30 April 2022. The period of engagement as the Company’s auditor, following a Group restructuring, since being

incorporated in 2009, is 12 years, covering the years ending 26 March 2011 to 30 April 2022. As set out in the Audit Committee report

on page 108, 2021/22 is the final year of our audit tenure.

15.2. Consistency of the audit report with the additional report to the audit committee

Our audit opinion is consistent with the additional report to the audit committee we are required to provide in accordance with ISAs

(UK).

16. Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act

2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to

state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for

the opinions we have formed.

As required by the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rule (DTR) 4.1.14R, these financial

statements form part of the European Single Electronic Format (ESEF) prepared Annual Financial Report filed on the National

Storage Mechanism of the UK FCA in accordance with the ESEF Regulatory Technical Standard (‘ESEF RTS’). This auditor’s report

provides no assurance over whether the annual financial report has been prepared using the single electronic format specified

in the ESEF RTS.

David Griffin

Senior Statutory Auditor

for and on behalf of Deloitte LLP

Statutory Auditor

London, United Kingdom

06 July 2022

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Consolidated Income Statement

Note

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Continuing operations

Revenue 2,3 10,1 4 4 1 0, 344

Profit before interest and tax 2,3 222 1 47

Finance income 2 6

Finance costs (98) (1 2 0)

Net finance costs 5 (9 6) (1 1 4)

Profit before tax 126 33

Income tax expense 6 (55) (33)

Profit after tax – continuing operations 71 –

Profit after tax – discontinued operations 24 – 12

Profit after tax for the period 71 12

Earnings per share (pence) 7

Basic – continuing operations 6.3p –p

Diluted – continuing operations 6.0p –p

Basic – total 6.3p 1 .0p

Diluted – total 6.0p 1 .0p

164 Currys plc Annual Report & Accounts 2021/22

Consolidated Statement of Comprehensive Income

Note

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Profit after tax for the period 71 12

Items that may be reclassified to the income statement in subsequent years:

Cash flow hedges 22

Fair value movements recognised in other comprehensive income 14 (51)

Reclassified and reported in income statement (2 8) 11

Tax on movements on cash flow hedges 6 (3) –

Exchange (loss)/gain arising on translation of foreign operations (3 3) 46

(5 0) 6

Items that will not be reclassified to the income statement in subsequent years:

Actuarial gain on defined benefit pension schemes – UK 21 1 56 30

– Overseas 21 3 –

Tax on movements on defined benefit pension schemes 6 8 13

Gains on financial assets measured at fair value through other comprehensive income – 8

1 67 51

Other comprehensive income for the period (taken to equity) 117 57

Total comprehensive income for the period 188 69

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Consolidated Balance Sheet

Note

30 April

2022

£m

1 May

2021

£m

Non-current assets

Goodwill 8 2 , 814 2 , 8 51

Intangible assets 9 385 4 26

Property, plant & equipment 10 162 1 84

Right-of-use assets 11 1 , 007 1 , 051

Lease receivables 12 3 3

Trade and other receivables 14 1 23 138

Deferred tax assets 6 28 2 26 2

4 , 7 76 4 ,9 1 5

Current assets

Inventory 13 1, 28 6 1 ,1 78

Lease receivables 12 1 1

Trade and other receivables 14 696 587

Derivative assets 25 28 24

Cash and cash equivalents 15 1 26 175

2 ,1 37 1 ,9 6 5

Total assets 6 ,9 1 3 6, 880

Current liabilities

Trade and other payables 16 (2, 368) (2 , 23 3)

Derivative liabilities 25 (11) (4 2)

Contingent consideration 17 – (2)

Income tax payable (6 4) (6 4)

Loans and other borrowings 18 (2) (6)

Lease liabilities 19 (2 1 0) (2 1 6)

Provisions 20 (4 8) (5 8)

(2,703) (2, 62 1)

Non-current liabilities

Trade and other payables 16 (96) (97)

Loans and other borrowings 18 (8 0) –

Lease liabilities 19 (1 ,057) (1 , 1 1 0)

Retirement benefit obligations 21 (257) (4 8 2)

Deferred tax liabilities 6 (20 8) (1 62)

Provisions 20 (11) (2 7)

(1 , 70 9) (1 , 87 8)

Total liabilities (4,41 2) (4 , 4 9 9)

Net assets 2, 501 2 , 381

Capital and reserves 22

Share capital 1 1

Share premium reserve 2 , 26 3 2 , 26 3

Other reserves (80 3) (76 4)

Accumulated profits 1,0 40 881

Equity attributable to equity holders of the parent company 2, 501 2 , 381

The financial statements were approved by the directors on 6 July 2022 and signed on their behalf by:

Alex Baldock

Group Chief Executive

Bruce Marsh

Group Chief Financial Officer

Company registration number: 7105905

166 Currys plc Annual Report & Accounts 2021/22

Consolidated Statement of Changes in Equity

Note

capital

£m

premium

reserve

£m

Other

reserves*

£m

Accumulated

profits

£m

Total

equity

£m

At 2 May 2020 1 2 , 26 3 (7 75) 791 2, 28 0

Profit for the period – – – 12 12

Other comprehensive income recognised directly

in equity – – 14 43 57

Total comprehensive income for the period – – 1 4 55 69

Amounts transferred to the carrying value of

inventory purchased during the year – – 24 – 24

Net movement in relation to share schemes – – 4 17 21

Amounts transferred from investments revaluation

reserve – – (1 8) 18 –

Purchase of own shares – employee benefit trust 22 – – (13) – (1 3)

At 1 May 2021 1 2 , 26 3 (76 4) 881 2 , 381

Profit for the period – – – 71 71

Other comprehensive (expense)/income

recognised directly in equity – – (50) 1 67 117

Total comprehensive (expense)/income for the

period – – (5 0) 23 8 188

Amounts transferred to the carrying value of

inventory purchased during the year – – 28 – 28

Net movement in relation to share schemes 4 – – 24 (1) 23

Purchase of own shares – employee benefit trust 22 – – (4 1) – (4 1)

Purchase of own shares – share buyback 22 – – (32) – (32)

Cancellation of treasury shares 22 – – 32 (32) –

Equity dividend 23 – – – (4 6) (4 6)

At 30 April 2022 1 2 , 26 3 (8 03) 1 ,040 2, 501

* A detailed reconciliation of Other reserves is provided in note 22b.

167

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Financial Statements

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Strategic Report

Consolidated Cash Flow Statement

Note

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Operating activities

Cash generated from operations 26 524 926

Contributions to defined benefit pension scheme (78) (4 7 )

Income tax paid (1 8) (3 5)

Net cash flows from operating activities 428 844

Investing activities

Net cash outflow arising from acquisitions (2) (1)

Proceeds from sale of financial assets at FVTOCI – 18

Proceeds on sale of business 1 2

Acquisition of property, plant & equipment and other intangibles (1 3 3) (1 2 2)

Net cash flows from investing activities (1 3 4) (10 3)

Financing activities

Interest paid (87) (1 01)

Capital repayment of lease liabilities (208) (23 2)

Purchase of own shares – employee benefit trust (4 1) (13)

Purchase of own shares – share buyback (32) –

Equity dividends paid (4 6) –

Drawdown/(repayment) of borrowings 80 (3 26)

Facility arrangement fees paid (6) –

Net cash flows from financing activities (3 4 0) (6 7 2)

(Decrease)/increase in cash and cash equivalents and bank overdrafts (4 6) 69

Cash and cash equivalents and bank overdrafts at the beginning of the period 169 1 20

Currency translation differences 1 (2 0)

Cash and cash equivalents and bank overdrafts at the end of the period 26 1 24 1 69

168 Currys plc Annual Report & Accounts 2021/22

Notes to the Group Financial Statements

1 Significant accounting policies

a) Basis of preparation

Currys plc (the ‘Company’) is a public company limited by shares incorporated in the United Kingdom, which is registered in England

and Wales under the Companies Act 2006.

The consolidated financial statements have been prepared on a going concern basis in accordance with UK-adopted international

accounting standards in conformity with the requirements of the Companies Act 2006 as applicable to companies reporting under

those standards. On 31 December 2020, IFRS as adopted by the European Union at that date was brought into UK law and became

UK-adopted International Accounting Standards, with future changes being subject to endorsement by the UK Endorsement Board.

Currys Plc transitioned to UK-adopted International Accounting Standards in its group financial statements on 2 May 2021.

This change constitutes a change in accounting framework. However, there is no impact on recognition, measurement or disclosure

in the period reported as a result of the change in framework.

The financial statements have been presented in Pound Sterling, based on the Group’s primary economic environment, and on

the historical cost convention except for the revaluation of certain financial instruments and defined benefit pension obligations,

as explained below. All amounts have been rounded to the nearest million (‘£m’), unless otherwise stated.

Significant accounting policies have been included in the relevant notes to the financial statements to which the policies relate.

These are presented as text highlighted on pages 174 to 221. Where accounting policies are applied to the financial statements as

a whole, they are detailed further below. Unless otherwise stated, the accounting policies are the same as those which have been

applied consistently to all periods presented and in previous financial years.

Alternative performance measures (‘APMs’)

In addition to IFRS measures, the Group uses certain APMs that are considered to be additional informative measures of ongoing

trading performance of the Group and are consistent with how performance is measured internally. The APMs used by the Group

in addition to IFRS measures are included within the Glossary and definitions on page 231. This includes further information on the

definitions, purpose, and reconciliation to IFRS measures of those APMs that are used for internal reporting and presented to the

Group’s Chief Operating Decision Maker (‘CODM’). The CODM has been determined to be the Board.

Going concern

Going concern is the basis of preparation of the financial statements that assumes an entity will remain in operation for a period of

at least 12 months from the date of approval of the financial statements. The Group and Company’s business activities, factors likely

to affect future development, performance and position, as well as the principal risks are set out in the Strategic Report on pages 1

to 79. The Group and Company’s funding arrangements and processes for managing its exposure to liquidity risk are set out in notes

18 and 25.

In their consideration of going concern, the directors have reviewed the Group’s future cash forecasts and profit projections, which

are based on market data and past experience. The directors are of the opinion that the Group’s forecasts and projections, which

take into account reasonably possible changes in trading performance, including the potentially prolonged impact of Covid-19

and the impact from inflation exacerbated by the conflict in Eastern Europe, show that the Group is able to operate within its

current facilities and comply with its banking covenants for the foreseeable future. In arriving at their conclusion that the Group

has adequate financial resources, the directors considered the level of borrowings and facilities as set out in note 18 to the Group

financial statements and that the Group has a robust policy towards liquidity and cash flow management.

As a result of the uncertainties surrounding the forecasts due to the current macroeconomic environment, the Group has also

modelled a reverse stress test scenario. The reverse stress test models the decline in sales that the Group would be able to absorb

before requiring additional sources of financing in excess of those that are committed. Such a scenario, and the sequence of events

which could lead to it, is considered to be remote.

As a result, the Board believes that the Group is well placed to manage its financing and other significant risks satisfactorily and

that the Group will be able to operate within the level of its facilities for the foreseeable future. For this reason, the Board considers

it appropriate for the Group to adopt the going concern basis in preparing its financial statements. The long-term impact of

macroeconomic factors are uncertain and should the impacts on trading conditions be more prolonged or severe than what the

directors consider to be reasonably possible, the Group would need to implement additional operational or financial measures.

169

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Financial Statements

Investor Information

Strategic Report

1 Significant accounting policies continued

b) Accounting convention and basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the

Company (its subsidiaries). Control is achieved where the Company has the power over the investee; is exposed, or has rights,

to variable return from its involvement with the investee; and has the ability to use its power to affect its returns.

The results of subsidiaries and joint ventures acquired or sold during the year are included in the consolidated income statement

from the effective date of acquisition or up to the effective date of disposal as appropriate, which is the date from which the

power to control passes. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting

policies used into line with those used by the Group. All intercompany transactions and balances are eliminated on consolidation.

c) Foreign currency translation and transactions

Foreign currency transactions

Transactions denominated in foreign currencies are translated to the Group’s presentational currency using the exchange rate at the

date of the transaction. The Group uses foreign exchange forward contracts to hedge material transactions denominated in foreign

currencies, as outlined in note 25. Foreign exchange differences arising are recognised in the Group’s income statement in the year in

which they arise.

Foreign currency translation

Material monetary assets and liabilities denominated in foreign currencies are hedged, mainly using forward foreign exchange

contracts to create matching liabilities and assets, and are translated at the rates prevailing at the balance sheet date.

The results of foreign operations are translated each month at the monthly rate, and their balance sheets are translated at the rates

prevailing at the balance sheet date. Goodwill and acquisition intangible assets are held in the currency of the operation to which

they relate. Exchange differences arising on the translation of net assets, goodwill and results of foreign operations are recognised

in the Group statement of other comprehensive income and are included in the Group’s translation reserve.

The principal exchange rates against Pound Sterling used in these financial statements are as follows:

Average Closing

2022 2021 2022 2021

Euro 1.18 1.12 1.19 1.15

Norwegian Krone 11.86 11.90 11.78 11.50

Swedish Krona 12.11 11.56 12.31 11.69

US Dollar 1.35 1.33 1.26 1.38

d) Key sources of estimation uncertainty and critical accounting judgements

Critical accounting judgements and estimates used in the preparation of the financial statements are continually reviewed and

revised as necessary. Whilst every effort is made to ensure that such judgements and estimates are reasonable, by their nature they

are uncertain, and as such changes may have a material impact.

Key sources of estimation uncertainty

Defined benefit pension schemes

The surplus or deficit in the UK defined benefit pension scheme that is recognised through the consolidated statement of

comprehensive income and expense is subject to a number of assumptions and uncertainties. The calculated liabilities of the

scheme are based on assumptions regarding inflation rates, discount rates and member longevity. Such assumptions are based

on actuarial advice and are benchmarked against similar pension schemes. Refer to note 21 for further information.

Revenue recognition – network commissions

For certain transactions with mobile network operators (‘MNOs’), the quantum of commission receivable on mobile phone

connections depends on consumer behaviour after the point of sale. This leads to an estimate over the transaction price due to the

variability of revenue. A level of constraint is applied to the revenue recognition to ensure revenue is only recognised when it is highly

probable there will not be a significant reversal. By the nature of this constraint, applied in line with IFRS 15: ‘Revenue from Contracts

with Customers’, it is possible that additional revenue will be recognised in future periods from performance obligations satisfied in

prior periods. For example, the network commission receivables are routinely increased each year in line with the Retail Prices Index

(‘RPI’), however, as part of the variable revenue constraint, the Group does not include this RPI estimate in the revenue recognised at

point of sale.

170 Currys plc Annual Report & Accounts 2021/22

1 Significant accounting policies continued

d) Key sources of estimation uncertainty and critical accounting judgements continued

Key sources of estimation uncertainty continued

Revenue recognition – network commissions continued

For the year ended 30 April 2022, the revenue recognised includes a value of £11m (2020/21: £6m) relating to the application of

RPI increases on end consumer contracts by the respective MNOs relating to performance obligations satisfied in prior periods.

As a result of the revenue constraints applied to counteract the estimation uncertainty over consumer behaviour, it is reasonably

possible that additional revenue may be recognised in the next financial year from performance obligations satisfied in prior

periods of between £nil and £20m (2020/21: between £nil and £15m). Further details of the estimations involved with network

commissions can be found in note 3 and a reconciliation of the movements in the network commission receivables within the year

is included within note 14.

Impairment of non-financial assets

The Group tests whether goodwill has suffered any impairment on an annual basis based on the value of the discounted future cash

flows allocated to the group of CGUs to which it is allocated. The methodology and key assumptions used in assessing the carrying

value of goodwill are set out further below. The key assumptions made for long term projections, sales growth rates, cost saving

initiatives and discount rate all include an element of estimation that may give rise to a difference between the value ascribed and

the actual outcomes. Due to the current macroeconomic environment, there is an increased level of risk and therefore a key source

of estimation uncertainty with the sales and cost growth assumptions that drive the operating profit forecasts, the long-term growth

rate applied beyond the three-year forecast period, and the pre-tax discount rate. It is reasonably possible that a change in these

assumptions could lead to a material change in the carrying value of goodwill specifically within the UK & Ireland operating segment,

where £1,840m of goodwill is allocated, within the next financial year. Further details of the key assumptions used and the sensitivity

analysis in respect of the recoverable amount of UK & Ireland goodwill is disclosed in note 8.

Property, plant & equipment, right-of-use assets, and other non-current assets are reviewed for impairment if events or changes in

circumstances indicate that the carrying amount of an asset or CGU is not recoverable. A CGU is an individual store. The recoverable

amount is the greater of the fair value less costs to sell and value in use. In calculating the value in use of each store CGU, order &

collect sales (and associated costs) have been included, as well as an allocation of e-commerce sales that have been delivered

directly to the consumer (rather than ordered in store or collected in store) based on data obtained from customer surveys that

support the allocation to stores. Due to the current macroeconomic environment there is an increased level of risk associated with

the forecast operating profit contribution generated by the stores (including the online sales allocations). Therefore, a key source of

estimation uncertainty associated with the sales and cost growth assumptions that drive the operating profit forecasts attributable

directly to the store portfolio has been identified. It is considered reasonably possible that a change in these operating profit

forecast assumptions could lead to a material change in the carrying value of assets specifically attributed to the UK stores, within

the next financial year. If the operating profit generated by the store portfolio (including order & collect and an allocation of

e-commerce sales delivered directly to the consumer) reduces by a reasonably possible 20% from 2022/23 onwards, this would

result in a further impairment of store assets by £10m (2020/21: £18m). The total carrying value of the store assets that have a

significant risk and would be impacted by the reasonably possible change of 20% operating profit reduction, is £46m. The directors

do not consider that the relevant change in this assumption would have a consequential effect on other key assumptions.

Deferred tax asset – UK losses carried forward

The Group recognises, and regularly remeasures, deferred tax assets for the carry forward of unused tax losses and pension

contributions within the UK to the extent that future taxable profit will be available against which the unused tax losses and pension

contributions can be utilised. These losses predominantly relate to trading losses incurred in Currys Retail Limited, which is part of a

wider tax group in the UK where the losses can be utilised against future profits across the UK business. The Group recognised a total

net deferred tax asset of £74m (2020/21: £100m), which includes £61m (2020/21: £86m) in the UK relating to unused tax losses and

pension contributions that is subject to significant estimation uncertainty. The deferred tax asset with the estimation uncertainty is

based on management’s projections over the next 3 years, including sales and costs growth rates and any potential impact of the

risks to achieving the Group’s objectives, including the risks presented by macroeconomic downturns and supply chain pressures,

all of which may give rise to a difference between the value ascribed and the actual outcome.

It is reasonably possible that a change in assumption could result in a material change in the forecast taxable profit that will be

available against which the unused tax losses can be utilised, and a subsequent change in the deferred tax asset that is recognised,

within the next year. The Group has modelled different scenarios to assess the impact on the deferred tax asset and based on

these the deferred tax asset could range from £52m to £68m. For instance, the lower end of the range is aligned to the assumptions

applied in the reasonable worse case scenarios used in our going concern modelling and would result in the deferred tax asset

reducing to £52m. Conversely, the higher end of the range models the external market assumptions used for sales estimates in the

2022/23 forecast assuming they outperform expectations by a reasonably possible amount, and would result in a larger deferred

tax asset of £68m being recognised.

Notes to the Group Financial Statements continued

171

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Financial Statements

Investor Information

Strategic Report

1 Significant accounting policies continued

d) Key sources of estimation uncertainty and critical accounting judgements continued

Critical accounting judgements

Taxation

The Group is subject to income taxes in a number of different jurisdictions and judgement is required in determining the appropriate

provision for transactions where the ultimate tax determination is uncertain. The Group recognises a provision when it is probable

that an obligation to pay tax will crystallise as a result of a past event. The quantum of provision recognised is based on the best

information available and has been assessed by in-house tax specialists, and where appropriate third-party taxation and legal

advisors, and represents the Group’s best estimate of the most likely outcome. Where the final outcome of such matters differs

from the amounts initially recorded, any differences will impact the income tax and deferred tax provisions in the year to which such

determination is made. Tax laws that apply to the Group’s businesses may be amended by the relevant authorities, for example as a

result of changes in fiscal circumstances or priorities. Such potential amendments and their application to the Group are monitored

regularly and the requirement for recognition of any liabilities (or changes in existing provisions) assessed where necessary.

The Group has recognised provisions in relation to uncertain tax positions of £66m at 30 April 2022 (2020/21: £65m). Due to the

nature of the provisions recorded, the timing of the settlement of these amounts remains uncertain.

Furthermore, the Group is currently cooperating with HMRC in relation to open tax enquiries arising from pre-merger legacy corporate

transactions in the Carphone Warehouse Group. One of the underlying pre-merger transactions under enquiry is considered to have

a ‘more likely than not’ chance of resulting in settlement. The Group therefore determined, due to this level of risk, that a provision was

appropriate and this was recognised in the 2018/19 financial statements. This enquiry is still open and the treatment as a provision

continues to be deemed appropriate, with £42m (2020/21: £41m) (comprising both the amount of tax due on settlement together with

interest up to 30 April 2022) included within the uncertain tax provisions balance explained above as at 30 April 2022. This enquiry

is linked to another pre-merger tax risk that has a ‘more likely than not’ chance of resulting in settlement and has therefore been fully

provided for at £18m (2020/21: £17m) (comprising both the amount of tax due together with interest). This provision is included within

the uncertain tax provisions balance explained above as at 30 April 2022.

In addition, the Group has a further open tax enquiry arising from a separate pre-merger legacy corporate transaction. Based on

the strength of third-party legal advice it is considered ‘more likely than not’ that this enquiry will not result in an economic outflow

to the Group and therefore no provision has been made. The potential range of tax exposures relating to this enquiry is estimated

to be approximately £nil – £214m excluding interest and penalties (2020/21: £nil - £214m). Interest on the upper end of the range is

approximately £61m up to 30 April 2022 (2020/21: £56m). Penalties could range from nil to 30% of the principal amount of any tax.

Any potential cash outflow would occur in greater than one year and less than five years. This potential outflow has been disclosed

as a contingent liability within note 31.

e) Recent accounting developments

In the current year, the Group has applied a number of amendments to International Financial Reporting Standards (‘IFRSs’) and

Interpretations issued by the International Accounting Standards Board (‘IASB’) that are effective for the financial year beginning

2 May 2021. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial

statements. The Group has considered the following standards whose impact is not deemed to be material:

• Amendments to IFRS 9: ‘Financial Instruments’, IAS 39: ‘Financial Instruments: Recognition and Measurement’, IFRS 7: ‘Financial

Instruments: Disclosures’ IFRS 4: ‘Insurance Contracts’ and IFRS 16: ‘Leases’ on Phase 2 of interest rate benchmark reform.

• Amendment to IFRS 16: ‘Covid-19 Related Rent Concessions beyond 30 June 2021’.

Certain other new accounting standards, amendments to existing accounting standards and interpretations which are in issue but

not yet effective, either do not apply to the Group or are not expected to have any material impact on the Group’s net results or

net assets:

• IFRS 17: ‘Insurance Contracts’.

• IFRS 10 and IAS 28 (amendments) Sale or Contribution of Assets between an Investor and its Associate or Joint Venture.

• Amendments to IAS 1 Classification of Liabilities as Current or Non-current.

• Amendments to IFRS 3 Reference to the Conceptual Framework.

• Amendments to IAS 16: ‘Property, Plant and Equipment’ – Proceeds before Intended Use.

• Amendments to IAS 37 Onerous Contracts – Cost of Fulfilling a Contract.

• Annual Improvements to IFRS Standards 2018-2020 Cycle: Amendments to IFRS 1: ‘First-time Adoption of International Financial

Reporting Standards’, IFRS 9: ‘Financial Instruments’, IFRS 16: ‘Leases’, and IAS 41: ‘Agriculture’.

• Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting Policies.

• Amendments to IAS 8 Definition of Accounting Estimates.

• Amendments to IAS 12: ‘Deferred Tax’ related to Assets and Liabilities arising from a Single Transaction.

172 Currys plc Annual Report & Accounts 2021/22

2 Segmental analysis

The Group’s operating segments reflect the segments routinely reviewed by the CODM and which are used to manage performance

and allocate resources. This information is predominantly based on geographical areas which are either managed separately or

have similar trading characteristics such that they can be aggregated together into one segment.

Changes to operating segments

During the period the operating and reporting segments of the Group have changed and reflect the updated segments reported

to the Board, who are considered the CODM under IFRS 8: ‘Operating Segments’. Following the closure of the Carphone Warehouse

standalone store estate within the UK in April 2020, Carphone Warehouse Ireland business in April 2021, the final legacy network

contract with volume commitments ending in June 2021, along with the rebrand in the UK to Currys and mobile becoming a category

within the Currys business, the previously disclosed UK & Ireland Electricals and UK & Ireland Mobile segments have been combined

into a single UK & Ireland segment.

It was subsequently determined that by including mobile as a category within Currys and the removal of the legacy network volume

commitments, that the previously disclosed UK & Ireland Mobile segment incurs expenses in the same manner and sells similar

products to that of the UK & Ireland Electricals segment. The Group has therefore consolidated the information presented to the

Board to provide greater clarity over the relative performance of the UK & Ireland business and to support decisions related to the

allocation of the Group’s resources. The restatement of comparative information for these segments has been set out in note 2b.

The Group’s operating and reportable segments have therefore been identified as follows:

• UK & Ireland; comprises the operations of Currys, Carphone Warehouse, iD Mobile and B2B operations.

• Nordics; operates in Norway, Sweden, Finland and Denmark with franchise operations in Iceland, Greenland and the Faroe Islands.

• Greece; consisting of our ongoing operations in Greece and Cyprus.

UK & Ireland, Nordics and Greece are involved in the sale of consumer electronics and mobile technology products and services,

primarily through stores or online channels.

Transactions between segments are on an arm’s length basis.

In accordance with IFRS 5, discontinued operations are disclosed separately as a single amount within the Group’s consolidated

income statement after profit after tax for continuing operations. Discontinued operations are therefore excluded from the

segmental analysis. Further information on the Group’s operations classified as discontinued is outlined in note 24.

a) Segmental results

Year ended 30 April 2022

UK & Ireland

£m

Nordics

£m

Greece

£m

Eliminations

£m

Total

£m

External revenue 5,485 4,105 554 – 10,144

Inter-segmental revenue 67 – – (67) –

Total revenue 5,552 4,105 554 (67) 10,144

Profit before interest and tax 71 130 21 – 222

Year ended 1 May 2021 (restated)*

UK & Ireland

£m

Nordics

£m

Greece

£m

Eliminations

£m

Total

£m

External revenue 5,642 4,186 516 – 10,344

Inter-segmental revenue 56 – – (56) –

Total revenue 5,698 4,186 516 (56) 10,344

Profit/(loss) before interest and tax (11) 139 19 – 147

* As discussed above, during the period the Group’s reportable segments have been changed to reflect the updated segments reported to the Board. As a result,

inter-segmental revenue has been restated from £194m to £56m for the year ended 1 May 2021. This is to remove inter-segmental revenue transactions between the

previously disclosed UK & Ireland Electricals and UK & Ireland Mobile CGUs. A full restatement of segmental information from what was disclosed in prior periods is

presented below in note 2b.

No individual customer represented more than 10% of the Group’s revenue within the current or preceding period.

Notes to the Group Financial Statements continued

173

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Strategic Report

2 Segmental analysis continued

b) Restatement of segmental information

As discussed above, during the period the Group’s reportable segments have been changed, and comparatives have been restated

accordingly. The below tables provide reconciliations for external revenue and profit/(loss) before interest and tax for the year

ended 1 May 2021. The relevant adjustment is a reconciliation of the previously disclosed UK & Ireland Electricals and UK & Ireland

Mobile segments to the UK & Ireland segment.

External revenue

As previously

reported

£m

Reallocate

UK & Ireland

Electricals

£m

Reallocate

UK & Ireland

Mobile

£m

Total

£m

UK & Ireland – 4,921 721 5,642

UK & Ireland Electricals (as previously reported) 4,921 (4,9 2 1) – –

UK & Ireland Mobile (as previously reported) 721 – (721) –

Nordics 4,186 – – 4,186

Greece 516 – – 516

Total revenue 10,344 – – 10,344

Profit/(loss) before interest and tax

As previously

reported

£m

Reallocate

UK & Ireland

Electricals

£m

Reallocate

UK & Ireland

Mobile

£m

Total

£m

UK & Ireland – 78 (89) (11)

UK & Ireland Electricals (as previously reported) 78 (78) – –

UK & Ireland Mobile (as previously reported) (89) – 89 –

Nordics 139 – – 139

Greece 19 – – 19

Profit/(loss) before interest and tax 147 – – 147

c) Geographical information

Revenues are allocated to countries according to the entity’s country of domicile. Revenue by destination is not materially different

to that shown by domicile. Non-current assets exclude financial instruments and deferred tax assets.

Year ended 30 April 2022 Year ended 1 May 2021

£m

Norway

£m

Sweden

£m

Other

£m

Total

£m

Norway

£m

Sweden

£m

Other

£m

Total

£m

Revenue 5,299 1,245 1,387 2,213 10,144 5,352 1,269 1,375 2,348 10,344

Non-current

assets 2,718 588 457 690 4,453 2,886 581 461 684 4,612

Capital

expenditure 64 32 10 27 133 60 36 7 19 122

174 Currys plc Annual Report & Accounts 2021/22

3 Revenue and profit before interest and taxation

Accounting policies

Revenue primarily comprises sales of goods and services net of returns, expected returns and excluding sales taxes. Revenue

is measured based on the consideration to which the Group expects to be entitled in a contract with a customer and excludes

amounts collected on behalf of third parties. The Group recognises revenue when it transfers control of a product or service

to a customer. The following accounting policies are applied to the principal revenue generating activities in which the Group

is engaged:

a) Sale of goods

Revenue from the sale of goods is recognised at the point of sale or, where later, upon delivery to the customer. Where

consideration is received, or receivable, in advance of the customer obtaining control and the performance obligations being

satisfied, a contract liability is recognised.

It is Group policy to grant customers the right to return their products within a defined period of time. As this does not represent

a separate performance obligation, the Group only recognises revenue to which it expects to be entitled. The Group uses the

most likely amount method to estimate the expected value of goods to be returned by customers exercising their rights in line

with the Group’s refund policy based on the prior period return rates.

A refund liability is recognised as a component of trade and other payables for the amount of variable consideration that

the Group does not expect to be entitled. A separate right to return asset is recognised within inventory to represent the right to

recover goods from customers on settlement of the refund liability. This is measured by reference to the former carrying amount

of the goods sold less any recoverability costs and decrease in value.

b) Network commissions

Revenue from network commissions is recognised at a point in time on completion of the performance obligation under the

individual contract with the MNO. The Group operates under contracts with a number of MNOs. Over the life of these contracts,

the service provided by the Group to each MNO is the procurement of connections to the MNOs’ networks. Each connection

made to an MNO’s network relates to an individual consumer. The consumer enters into a contract with the MNO for the MNO

to supply the ongoing airtime over that contract period.

The Group earns a commission for the service provided to each MNO (‘network commission’). Revenue is recognised at the point

the individual consumer signs a contract with the MNO. Consideration from the MNO becomes receivable over the course of

the contract between the MNO and the consumer. A judgement associated with this recognition is the unit of account used in

measurement. As there is a large population of homogeneous items, in measuring the amount of revenue to recognise the Group

has determined that the number and value of consumers provided to each MNO in any given month (a ‘cohort’) represents the

best unit of account.

The level of network commission earned is based on a share of the monthly payments made by the consumer to the MNO,

including contractual monthly line rental payments together with a share of ‘out-of-bundle’ spend, spend after the contractual

term, and amounts due from customer upgrades performed directly by the network. The total consideration receivable is

determined by consumer behaviour after the point of recognition. The transaction price includes elements of variability and is

therefore an area of estimation.

The method of measuring the value of the revenue and contract asset in the month of connection is to estimate all future cash

flows that will be received from the network and discount these based on the expected timing of receipt.

A constrained estimate of the determined commission is recognised in full in the month of connection of the consumer to the

MNO as this is the point at which we have completed the service obligation relating to the consumer connection.

Transaction price is estimated based on extensive historical evidence obtained from the networks and an adjustment is made

for expected and possible changes in consumer behaviour including as a result of regulatory changes impacting the sector.

The consideration for a cohort of consumers is estimated by modelling the expected value of the portfolio of individual sales.

Revenue is only recognised to the extent that it is highly probable that a significant reversal in the amount of revenue recognised

will not occur. Management makes a quarterly, and the directors a twice-yearly, assessment of this data. This is based on the

best estimate of expected future trends.

Notes to the Group Financial Statements continued

175

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Financial Statements

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Strategic Report

3 Revenue and profit before interest and taxation continued

Accounting policies continued

c) Insurance revenue

Insurance revenue relates to the sale of third-party insurance products. Sales commission received from third parties is

recognised when the insurance policies to which it relates are sold. Although there are no ongoing performance obligations,

future commission receivable can vary due to consumer behaviour, however, it is only recognised to the extent that it is highly

probable that there will not be a significant reversal of revenue. The Group recognises a contract asset in relation to this

revenue. Any amount previously recognised as a contract asset is reclassified to trade receivables at the point in which it

becomes billable and is no longer conditioned on something other than the passage of time. Revenue from the provision of

insurance administration services is recognised over the life of the relevant policies when the Group’s performance obligations

are satisfied.

d) Support services – customer support agreements

Revenue earned from the sale of customer support agreements is recognised in full as the stand-ready performance

obligations are satisfied under the contracts with the customer. Where consideration is received in advance of the performance

of the obligations being satisfied, a contract liability is recognised. Due to the cancellation options and customer refund

clauses, contract terms have been assessed to either be monthly or a series of day to day contracts with revenue recognised

respectively in the month to which payment relates, or on a ‘straight-line’ basis.

e) Other services

Other services revenue, including delivery and installation, product repairs and product support, is recognised when the

obligation to the customer has been fulfilled. Other services revenue also includes revenue recognised through our Mobile

Virtual Network Operator (‘MVNO’) where we are the principal in the arrangement of providing handset and connectivity to

the consumer. In estimating the revenue to be recognised when control is transferred to the customer, an assessment is made of

the stand-alone selling prices (‘SSPs’) for handsets and connectivity based on the observable pricing of comparable handset

only and SIM only contracts sold by the entity. Transaction prices attributable to performance obligations are calculated

by allocating total contract revenue in the proportion to the SSPs for each performance obligation. The handset element is

included within ‘Sale of goods’ and the connectivity element is recognised in ‘Other services revenue’.

Revenue is recognised either when the performance obligation in the contract has been performed at a point in time (provision

of handset at contract commencement) or ‘over time’ as control of the performance obligation is transferred to the customer

(provision of monthly connectivity service). Customer payments are due monthly over the lifetime of the contract which results in

the recognition of accrued income in relation to the performance obligations already satisfied. These amounts are transferred

into trade receivables when billed to the customer.

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Revenue 10,144 10,344

Cost of sales (8,356) (8,592)

Gross profit 1,788 1,752

Operating expenses (1,566) (1,605)

Profit before interest and tax 222 147

176 Currys plc Annual Report & Accounts 2021/22

3 Revenue and profit before interest and taxation continued

The Group’s disaggregated revenues recognised under ‘Revenue from Contracts with Customers’ in accordance with IFRS 15 relates

to the following operating segments and revenue streams:

Year ended 30 April 2022

UK & Ireland

£m

Nordics

£m

Greece

£m

Total

£m

Sale of goods 4,698 3,756 511 8,965

Commission revenue 423 220 18 661

Support services revenue 239 57 17 313

Other services revenue 124 72 8 204

Other revenue 1 – – 1

Total revenue 5,485 4,105 554 10,144

Year ended 1 May 2021

UK & Ireland

£m

Nordics

£m

Greece

£m

Total

£m

Sale of goods 4,751 3,797 491 9,039

Commission revenue 469 252 1 722

Support services revenue 260 60 17 337

Other services revenue 157 77 7 241

Other revenue 5 – – 5

Total revenue 5,642 4,186 516 10,344

Revenue from commissions relates predominantly to network and insurance commissions which are further explained within the

accounting policies section above.

Income received from suppliers such as volume rebates

The Group’s agreements with suppliers contain a price for units purchased as well as other rebates and discounts which are

summarised below:

Volume Rebates: This income is linked to purchases made from suppliers and is recognised as a reduction to cost of goods sold as

inventory is sold. Rebates that relate to inventory not sold are recognised within the value of inventory at the period end. Where an

agreement spans period ends, estimation is required regarding amounts to be recognised. Forecasts are used as well as historical

data in the estimation of the level of income recognised. Amounts are only recognised where the Group has a clear entitlement to

the receipt of the rebate and a reliable estimate can be made.

Customer discount support: This income is received from suppliers on a price per unit basis. The level of estimation is minimal as

amounts are recognised as a reduction to cost of goods sold based on the agreement terms and only once the item is sold.

Marketing income: This income is received in relation to marketing activities that are performed on behalf of suppliers. Marketing

income is recognised over the period as set out in the specific supplier agreements and is recognised as a reduction to cost of sales.

Supplier funding amounts that have been recognised and not invoiced are shown within accrued income on the balance sheet.

Cash inflows for supplier funding received are classified as operating cash flows.

Notes to the Group Financial Statements continued

177

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Financial Statements

Investor Information

Strategic Report

3 Revenue and profit before interest and taxation continued

Profit before interest and taxation for continuing operations is stated after charging/(crediting) the following:

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Depreciation of property, plant & equipment 62 79

Impairment of property, plant & equipment* 6 5

Depreciation of right-of-use assets 190 200

Impairment of right-of-use assets* 42 15

Impairment reversal of right-of-use assets* (15) –

Amortisation of acquisition intangibles 24 26

Impairment of acquisition intangibles* – 8

Amortisation of other intangibles 62 57

Impairment of other intangibles* 33 47

Impairment reversal of other intangibles* (1) –

Impairment of inventory 72 80

Net impairment on financial assets (see note 14) 6 –

Cost of inventory recognised as an expense 8,013 8,175

Cash flow hedge amounts reclassified and reported in income statement (28) 11

Government grant income (1) (6)

Net foreign exchange gains (6) (2)

Share-based payments expense 23 21

Other employee costs (see note 4) 985 1,054

Restructuring costs** 12 54

Other exceptional income** (18) (31)

Regulatory income** (1) (7)

* Impairment and impairment reversals of fixed assets are all within the UK & Ireland operating segment.

** Restructuring costs, other exceptional income and regulatory income are further detailed within note A5 in the Glossary and definitions.

Auditor’s remuneration comprises the following:

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Fees payable to the Company’s Auditor for the audit of the Company’s annual accounts 0.1 0.1

Fees payable to the Company’s Auditor and its associates for the audit of the Company’s subsidiaries 1.7 1.5

Total audit fees 1.8 1.6

Audit-related assurance services:

Review of interim statement 0.2 0.2

Other assurance services – 0.2

Total audit and audit-related assurance services 2.0 2.0

Tax compliance services 0.1 0.1

Total audit and non-audit fees 2.1 2.1

178 Currys plc Annual Report & Accounts 2021/22

4 Employee costs and share-based payments

a) Employee costs

The aggregate remuneration recognised in the income statement for continuing operations is as follows:

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Salaries and performance bonuses 845 901

Social security costs 110 119

Other pension costs 30 34

985 1,054

Share-based payments 23 21

1,008 1,075

The average number of employees for continuing operations is:

Year ended

30 April

2022

number

Year ended

1 May

2021

(restated)*

number

UK & Ireland 19,625 23,025

Nordics 10,984 10,399

Greece 2,923 2,663

33,532 36,087

* Figures for the year ended 1 May 2021 have been restated to reflect the change in operating segments reported to the Board as per IFRS 8: ‘Operating Segments’.

The average number of employees for continuing operations previously disclosed for the UK & Ireland Electricals of 18,591 and UK & Ireland Mobile of 4,434 have

been combined into a single UK & Ireland operating segment.

Compensation earned by key management, comprising the Board of Directors and Executive Committee, is as follows:

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Short-term employee benefits 9 9

Termination benefits 1 1

Share-based payments 6 4

16 14

Further information about individual directors’ remuneration, share interests, share options, pensions and other entitlements,

which form part of these financial statements, is provided in the Remuneration Report.

Notes to the Group Financial Statements continued

179

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Financial Statements

Investor Information

Strategic Report

4 Employee costs and share-based payments continued

b) Share-based payments

Accounting policies

Equity settled share-based payments are measured at fair value at the date of grant and expensed on a straight-line basis

over the vesting period, based on an estimate of the number of shares that will eventually vest. A Monte Carlo model is used

to measure fair value.

For all schemes, the number of options expected to vest is recalculated at each balance sheet date, based on expectations

of leavers prior to vesting. For schemes with internal performance criteria such as free cash flow, the number of options

expected to vest is also adjusted based on expectations of performance against target. No adjustment is made for expected

performance against external performance criteria such as TSR, because the likelihood that the performance criteria will be

met is taken into account when estimating the fair value of the award on the grant date. The movement in cumulative expense

since the previous balance sheet date is recognised in the income statement, with a corresponding entry in reserves.

(i) Share option schemes

The Group offers discretionary awards of nil-priced options under the Long Term Incentive Plan (‘LTIP’) to senior employees.

Awards are granted annually and will usually vest after three years subject to continued service. Some awards are also subject

to the achievement of performance conditions.

For awards granted during the years ended 27 April 2019 and 2 May 2020, awards granted to Executive Directors and key

management are subject to performance conditions. For awards issued to other senior management, awards are not subject to

performance conditions.

For awards granted during the years ended 1 May 2021 and 30 April 2022, all awards issued are subject to performance conditions,

detailed below.

For awards granted during the year ended 27 April 2019, performance conditions are based on a combination of relative TSR

performance against the constituents of the FTSE 51-150 at the beginning of the performance period and cumulative free cash flow.

For awards granted during the years ended 2 May 2020, 1 May 2021 and 30 April 2022, performance conditions are based on a

combination of relative TSR performance against a bespoke comparator group of 22 European Special Line Retailers and other

comparable companies and cumulative free cash flow.

In February 2019, the Group launched the Colleague Shareholder Award which granted every permanent colleague with 12 months

service at least £1,000 of options which will vest after three years. These awards are not subject to performance conditions.

The following table summarises the number and weighted average exercise price (‘WAEP’) of share options for these schemes:

Year ended 30 April 2022 Year ended 1 May 2021

Number

WAEP

Number

WAEP

Outstanding at the beginning of the period 78 – 63 –

Granted during the period 20 – 32 –

Forfeited during the period (13) – (12) –

Exercised during the period (21) – (5) –

Outstanding at the end of the period 64 – 78 –

Exercisable at the end of the period 3 – – –

Year ended

30 April

2022

Year ended

1 May

2021

Weighted average market price of options exercised in the period £1.09 £1.01

Weighted average remaining contractual life of awards outstanding 8.3 yrs 8.5 yrs

Exercise price for options outstanding £nil £nil

180 Currys plc Annual Report & Accounts 2021/22

4 Employee costs and share-based payments continued

b) Share-based payments continued

(ii) SAYE scheme

The Group has SAYE schemes which allow participants to save up to £500 per month for either three or five years. At the end

of the savings period, participants can purchase shares in the Company based on a discounted share price determined at the

commencement of the scheme.

The following table summarises the number and WAEP of share options for these schemes:

Year ended 30 April 2022 Year ended 1 May 2021

Number

WAEP

Number

WAEP

Outstanding at the beginning of the period 19 0.82 15 1.19

Granted during the period 8 0.93 14 0.67

Exercised during the period – 0.81 – 0.86

Forfeited during period (7) 0.98 (10) 1.1619

Outstanding at the end of the period 20 0.81 19 0.82

Exercisable at the end of the period – 0.97 1 1.53

Year ended

30 April

2022

Year ended

1 May

2021

Weighted average market price of options exercised in the period £1.12 £1.36

Weighted average remaining contractual life of awards outstanding 2.3 yrs 2.7 yrs

Range of exercise prices for options outstanding £0.67 – £2.52 £0.67 – £3.77

(iii) Fair value model

The fair value of options was estimated at the date of grant using a Monte Carlo model. The model combines the market price of a

share at the date of grant with the probability of meeting performance criteria, based on the historical performance of the Group.

The weighted average fair value of options granted during the period was £0.79 (2020/21: £0.56). The following table lists the inputs

to the model:

Year ended

30 April

2022

Year ended

1 May

2021

Exercise price £nil – £0.93 £nil – £0.67

Dividend yield 0% – 3.8% 0% – 3.8%

Historical and expected volatility 42% 41%

Expected option life 4 – 10 yrs 4 – 10 yrs

Weighted average share price £1.30 £0.91

The expected volatility reflects the assumption that the historical volatility is indicative of future trends.

(iv) Charge to the income statement and entries in reserves

During the year ended 30 April 2022, the Group recognised a non-cash accounting charge to profit and loss of £23m (2020/21:

£21m) in respect of equity-settled share-based payments, with a corresponding credit through reserves.

Notes to the Group Financial Statements continued

181

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Financial Statements

Investor Information

Strategic Report

4 Employee costs and share-based payments continued

c) Employee Benefit Trust (‘EBT’)

30 April 2022 1 May 2021

Market

value

£m

Nominal

value

£m

Number

Market

value

£m

Nominal

value

£m

Number

Investment in own shares 31 – 33.2 28 – 20.5

Maximum number of shares held during

the period 48 – 51.9 28 – 20.5

The number of shares held by the EBT remain held for potential awards under outstanding plans. The costs of administering the

EBT are charged to the income statement in the year to which they relate. Investments in own shares are recorded at cost and are

recognised directly in equity within other reserves as disclosed in note 22b.

The EBT acquired 34.7m of the Company’s shares during the year ended 30 April 2022 via market purchases for cash consideration

of £41m. For the comparative period 4.1m shares were acquired at nominal value and 11.6m via market purchases for cash

consideration of £13m. During the period the EBT subsequently disposed of 21.9m (2020/21: 5.4m) ordinary shares in the Company

by way of share issue. These shares were held at a cost of £24m (2020/21: 4m).

The EBT has waived rights to receive dividends and agrees to abstain from exercising their right to vote. The shares have not been

allocated to specific schemes as further disclosed in the Directors’ Report. At 30 April 2022, the EBT held 2.9% (2020/21: 1.8%)

of the issued share capital of the Company.

5 Net finance costs

Accounting policies

Net finance costs comprise both finance income and finance costs. Finance income for financial assets and finance costs

for financial liabilities that are measured at amortised cost is calculated using the effective interest method.

Finance income includes income on cash and cash equivalents and income on the unwind of the network commission contract

assets and receivables as further disclosed in note 14. Finance costs include interest costs in relation to financial liabilities,

including lease liabilities which represent the unwind of the discount rate applied at the commencement date of the lease,

and finance costs related to the Group’s defined benefit pension obligation.

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Unwind of discounts on trade and other receivables 2 6

Finance income 2 6

Interest on bank overdrafts, loans and borrowings (6) (8)

Interest expense on lease liabilities (70) (77)

Net interest on defined benefit pension obligations (8) (8)

Amortisation of facility fees* (2) (11)

Other interest expense (12) (16)

Finance costs (98) (120)

Total net finance costs (96) (114)

* In April 2021, the Group refinanced its existing debt with two new revolving credit facilities. As such, all other facilities were cancelled as part of the refinancing and the

fees relating to these facilities were subsequently written off.

All finance costs in the above table represent interest costs of financial liabilities and assets, other than amortisation of facility fees

which represent non-financial assets and net interest on defined benefit pension obligations.

182 Currys plc Annual Report & Accounts 2021/22

6 Tax

Accounting policies

Current tax

Current tax is provided at amounts expected to be paid or recovered using the prevailing tax rates and laws that have been

enacted or substantively enacted by the balance sheet date and adjusted for any tax payable in respect of previous years.

Deferred tax

Deferred tax liabilities are recognised for all temporary differences between the carrying amount of an asset or liability in the

balance sheet and the tax base value and represent tax payable in future periods. Deferred tax assets are recognised to the

extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, except where

the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not

reverse in the foreseeable future. No provision is made for tax that would have been payable on the distribution of retained

profits of overseas subsidiaries or associated undertakings where it has been determined that these profits will not be

distributed in the foreseeable future.

Current and deferred tax is recognised in the income statement except where it relates to an item recognised directly in other

comprehensive income or reserves, in which case it is recognised directly in other comprehensive income or reserves as appropriate.

Deferred tax is measured at the average tax rates that are expected to apply in the years in which the timing differences are

expected to reverse, based on tax rates and laws that have been enacted, or substantively enacted, by the balance sheet date.

Deferred tax assets and liabilities are offset against each other when they relate to income taxes levied by the same tax

jurisdiction and when the Group intends to settle its current tax assets and liabilities on a net basis. Deferred tax balances

are not discounted.

a) Tax expense

The corporation tax charge comprises:

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Current tax

UK corporation tax at 19% (2020/21: 9%) 14 7

Overseas tax 21 36

35 43

Adjustments made in respect of prior years*:

UK corporation tax 1 (12)

Overseas tax 1 (1)

2 (13)

Total current tax 37 30

Deferred tax

UK corporation tax 10 5

Overseas tax 5 (6)

15 (1)

Adjustments in respect of prior years:

UK corporation tax 5 5

Overseas tax (2) (1)

3 4

Total deferred tax 18 3

Total tax charge 55 33

* This is further disclosed in note 6b(iii).

Tax related to discontinued operations is included in the figures set out in note 24.

Notes to the Group Financial Statements continued

183

Governance

Financial Statements

Investor Information

Strategic Report

6 Tax continued

b) Reconciliation of standard to actual (effective) tax rate

The principal differences between the total tax charge shown above and the amount calculated by applying the standard rate

of UK corporation tax to profit/(loss) before taxation are as follows:

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Profit before taxation 126 33

Tax at UK statutory rate of 19% (2020/21: 19%) 24 6

Items attracting no tax relief or liability

(i)

(4) 12

Movement in unprovided deferred tax

(ii)

28 16

Effect of change in statutory tax rate (1) 1

Differences in effective overseas tax rates 2 6

Increase in provisions 1 1

Adjustments in respect of prior years – provisions

(iii)

1 (13)

Adjustments in respect of prior years – other

(iv)

4 4

Total tax charge 55 33

(i) Items attracting no tax relief or liability relate mainly to non-deductible depreciation, share-based payments, and reversals of previously non-deductible store

closure provisions.

(ii) Deferred tax assets relating principally to tax losses and other short term timing differences in the UK business have not been recognised due to uncertainty over the

Group’s ability to utilise the losses in the future.

(iii) Provision releases in the prior year are predominantly where the window for recovery has now closed in relation to pre-merger uncertain tax positions.

(iv) Other adjustments in respect of prior years are mainly due to lower tax relief on fixed assets through capital allowances in submitted tax returns.

c) Deferred tax

Accelerated

capital

allowances

£m

Retirement

benefit

obligations

£m

Losses carried

forward

£m

Other

temporary

differences*

£m

Total

£m

At 2 May 2020 (51) 53 39 56 97

(Charged)/credited directly to income statement (1) – (13) 11 (3)

Credited to equity – 6 – – 6

At 1 May 2021 (52) 59 26 67 100

Reclassification 17 1 1 (19) –

(Charged)/credited directly to income statement (22) – (9) 13 (18)

Charged to equity – (5) – (3) (8)

At 30 April 2022 (57) 55 18 58 74

* Other temporary differences predominantly relates to fair value balances from business combinations.

Deferred tax comprises the following balances:

30 April

2022

£m

1 May

2021

£m

Deferred tax assets 282 262

Deferred tax liabilities (208) (162)

74 100

Analysis of deferred tax relating to items (charged)/credited to equity in the period:

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Defined benefit pension schemes (5) 6

Other temporary differences (3) –

(8) 6

184 Currys plc Annual Report & Accounts 2021/22

6 Tax continued

c) Deferred tax continued

The Group has total unrecognised deferred tax assets relating to gross tax losses of £1,456m (2020/21: £1,491m) of which £1,392m

relates to the UK (2020/21: £1,459m). £1,052m (2020/21: £1,052m) of these losses relate to carried forward capital losses in the legacy

Dixons Group. The balance of the losses relates to carried forward trading losses, principally due to the losses realised in the

Carphone Warehouse business in the UK.

A deferred tax asset has not been recognised in respect of the trading losses (£404m), other deductible temporary differences

(£118m) and pension contributions (£38m) expected to reverse after the period of the Group’s three year plan which is used to

determine the availability of future taxable profits.

There were no temporary differences associated with non-distributable earnings of subsidiaries for which deferred tax liabilities

had not been recognised at the end of the current period or the prior period.

The Group has a current tax credit of £13m (2020/21: £7m) recognised through equity in relation to pensions.

On 24 May 2021 the Finance Bill 2021 passed through all stages in the House of Commons and became substantively enacted,

which included a legislative change to increase the rate of corporation tax to 25% with effect from 1 April 2023.

7 Earnings per share

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Total profit

Continuing operations 71 –

Discontinued operations – 12

Total 71 12

Million Million

Weighted average number of shares

Average shares in issue 1,165 1,166

Less average holding by Group EBT and Treasury shares held by Company (35) (14)

For basic earnings per share 1,130 1,152

Dilutive effect of share options and other incentive schemes 45 42

For diluted earnings per share 1,175 1,194

Pence Pence

Basic earnings per share

Total (continuing and discontinued operations) 6.3 1.0

Adjustment in respect of discontinued operations – (1.0)

Continuing operations 6.3 –

Diluted earnings per share

Total (continuing and discontinued operations) 6.0 1.0

Adjustment in respect of discontinued operations – (1.0)

Continuing operations 6.0 –

Basic and diluted earnings per share are based on the profit for the period attributable to equity shareholders.

Notes to the Group Financial Statements continued

185

Governance

Financial Statements

Investor Information

Strategic Report

8 Goodwill

Accounting policies

On acquisition of a subsidiary or associate, the fair value of the consideration is allocated between the identifiable net

tangible and intangible assets and liabilities on a fair value basis, with any excess consideration representing goodwill.

At the acquisition date, goodwill is allocated to each group of CGUs expected to benefit from the combination and held

in the currency of the operations to which the goodwill relates.

Goodwill is not amortised, but is assessed annually for impairment, or more frequently where there is an indication that

goodwill may be impaired. Impairment is assessed by measuring the future cash flows of the group of CGUs to which the

goodwill relates, at the level at which this is monitored by management. Where the future discounted cash flows or recoverable

amount is less than the carrying value of goodwill, an impairment charge is recognised in the income statement.

On disposal of subsidiary undertakings and businesses, the relevant goodwill is included in the calculation of the profit or loss

on disposal.

Cost £m

At 2 May 2020 3,028

Foreign exchange 48

At 1 May 2021 3,076

Foreign exchange (37)

At 30 April 2022 3,039

Accumulated impairment £m

A 2 May 2020 and 1 May 2021 (225)

Impairment –

At 30 April 2022 (225)

Carrying amount £m

At 2 May 2020 2,803

At 1 May 2021 2,851

At 30 April 2022 2,814

No impairment charge has been recognised over goodwill in the current or prior period.

a) Carrying value of goodwill

The components of goodwill comprise the following businesses:

30 April

2022

£m

1 May

2021

£m

UK & Ireland 1,840 1,840

Nordics 974 1,011

2,814 2,851

As part of the strategic review and change in information reported to the Board as described in note 2, the Group has merged the

previously disclosed UK & Ireland Electricals and UK & Ireland Mobile operating segments into the combined UK & Ireland operating

segment. As a result of the change, the goodwill previously allocated to the UK & Ireland Electricals CGU of £1,840m has been

consolidated into the UK & Ireland CGU. The previously disclosed UK & Ireland Mobile CGU had a carrying value of £nil.

186 Currys plc Annual Report & Accounts 2021/22

8 Goodwill continued

b) Goodwill impairment testing

As required by IAS 36, goodwill is subject to annual impairment reviews. These reviews are carried out using the following criteria:

• business acquisitions generate an attributed amount of goodwill;

• the manner in which these businesses are run and managed is used to determine the CGU grouping as defined in IAS 36:

‘Impairment of Assets’;

• the recoverable amount of each CGU group is determined based on calculating its value in use (‘VIU’);

• the VIU is calculated by applying discounted cash flow modelling to management’s own projections covering a three year period;

• cash flows beyond the three-year period are extrapolated using a long-term growth rate equivalent to long-term forecasts of

Gross Domestic Product (‘GDP’) growth rates for the relevant market; and

• the VIU is then compared to the carrying amount in order to determine whether impairment has occurred.

The key assumptions used in calculating VIU are:

• management’s sales and costs projections;

• the long-term growth rate beyond three years; and

• the pre-tax discount rate.

The Group applies an expected cash flow approach by probability-weighting different cash flow scenarios across the three-year

outlook period. The probability weightings are applied to medium term projections that are based on Board approved budgets for

2022/23 together with the Board approved three-year strategic plan alongside additional downside scenarios that take account

of the risks presented by macroeconomic downturns, and supply chain pressures. These projections have regard to the relative

performance of competitors and knowledge of the current market together with management’s views on the future achievable

growth in market share and impact of the committed initiatives, including long term sustainability targets committed by the Group.

The cash flows which derive from these three-year projections include ongoing capital expenditure required to develop and

upgrade the store network and e-commerce channels in order to maintain and operate the omnichannel businesses and to compete

in their respective markets. In forming the three-year projections, management draws on past experience as a measure to forecast

future performance.

A key assumption in determining the three year projections is the forecast operating profit in 2024/25, which is driven by the forecast

growth in sales and costs over this time. Other key assumptions comprise the long term growth rate and pre-tax discount rate, as well

as the weighted probability assigned to the board approved strategic plan. The compound annual growth rate in sales and costs

can rise as well as fall year-on-year depending not only on the year three targets, but also on the current financial year base.

These targets, when combined, accordingly drive the resulting profit margins and the profit in year three of the projections, which is in

turn used to calculate the terminal value in the VIU calculation. Historical amounts for the businesses under impairment review as well

as from other parts of the Group are used to generate the values attributed to these assumptions. In the comparative period ended

1 May 2021, the strategic plan covered a five year period and this was used for the impairment testing however in the current period

the outlook was over a three-year period as explained above.

The value attributed to these assumptions for the most significant components of goodwill are as follows:

30 April 2022 1 May 2021

Compound

annual

growth in

sales

Compound

annual

growth in

costs

Growth rate

beyond three

years

Pre-tax

discount rate

Compound

annual

growth in

sales

Compound

annual

growth in

costs

Growth rate

beyond three

years

Pre-tax

discount rate

UK & Ireland 2.7% 2.0% 1.5% 10.6% (1.8)% (2.0)% 1.4% 8.7%

Nordics 0.7% 0.5% 1.8% 9.6% 3.2% 3.1% 1.8% 7.8%

Growth rates used were determined based on third-party long-term growth rate forecasts and are based on the GDP growth rate

for the territories in which the businesses operate. The pre-tax discount rates applied to the forecast cash flows are based on a

risk-free rate of interest appropriate to the geographic location of the cash flows related to the asset being tested. The risks specific

to the asset are reflected as an adjustment to the future estimated cash flows. Pre-tax discount rates have been calculated using

the capital asset pricing model, the inputs of which include a country risk-free rate, equity risk premium, Group size premium and a

risk adjustment (beta). The discount rate is calculated by reference to a weighted average cost of capital (WACC) calculated by

reference to an industry peer group of quoted companies using post-tax rates which are subsequently grossed up to a pre-tax rate.

Notes to the Group Financial Statements continued

187

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8 Goodwill continued

c) Goodwill impairment sensitivity analysis

In line with the assumptions noted above and highlighted in note 1d, the Group undertook an impairment review of the UK & Ireland group

of CGUs, where £1,840m of goodwill is allocated. These impairment tests are prepared using the methodology required by IAS 36. The

recoverable amount, based on value in use, shows headroom of £69m above the carrying amount of UK & Ireland CGU. Within the value

in use model growth in sales and growth in costs assumptions drive the operating profit forecasts which are derived from expected cash

flows which are probability-weighted and include the Group’s strategic plan as well as a downside scenario to take account of the risks

presented by macroeconomic downturns and global supply chain pressures. One of the key assumptions within the value in use model is

therefore the operating profit forecast particularly in 2024/25 which is the year that drives the terminal value in the VIU calculation, and

which is underpinned by the successful delivery of a number of key strategic initiatives that are either currently underway or committed. In

addition to this, the other key assumptions include the growth rate beyond the three year forecast period and the pre-tax discount rate.

In accordance with IAS 36, the Group performed sensitivity analysis on the estimates of recoverable amounts and found that the

excess of recoverable amount over the carrying amount of the UK & Ireland CGU would be reduced to nil as a result of a reasonably

possible change in these key assumptions noted above. A summary of the impact of these key assumptions is as follows:

Key assumption for UK & Ireland VIU Reasonably possible change required to reduce carrying value to nil

Operating profit in 2024/25 If the operating profit in 2024/25,which drives the terminal value in the VIU, reduced by 4%, this

would reduce the recoverable amount to equal the carrying amount.

Long-term growth rate If the long-term growth rate applied to the expected cash flows in the VIU was decreased to

1.1%, this would reduce the recoverable amount to equal the carrying amount.

Pre-tax discount rate If the pre-tax discount rate applied to the expected cash flows in the VIU was increased to

10.8%, this would reduce the recoverable amount to equal the carrying amount.

As explained above, the recoverable amount, based on value in use, results in headroom of £69m above the carrying amount

of UK & Ireland CGU. A summary of the sensitivities applied to these key assumptions and the resulting headroom is as follows:

Key assumption for UK & Ireland VIU Sensitivity applied

Headroom/(Impairment)

£m

Movement

£m

Operating profit in 2024/25 Increase of 20% 458 389

Decrease of 20% (320) (389)

Long-term growth rate Increase of 1.0% 310 241

Decrease of 1.0% (124) (193)

Pre-tax discount rate Increase of 1.0% (159) (228)

Decrease of 1.0% 352 283

For the Nordics group of CGUs, where £974m of goodwill is allocated, the directors do not consider that any reasonably possible

changes to the key assumptions would reduce the recoverable amount to its carrying value.

9 Intangible assets

Accounting policies

Acquisition intangibles

Acquisition intangibles comprise brand names and customer relationships purchased as part of acquisitions of businesses

and are capitalised and amortised over their useful economic lives on a straight-line basis. These intangible assets are stated

at cost less accumulated amortisation and, where appropriate, provision for impairment in value or estimated loss on disposal.

Amortisation is provided to write off the cost of assets on a straight-line basis as follows:

Brands 7.0% – 13.3% per annum

Customer relationships 13.3% per annum

This amortisation is included in the income statement as an administrative expense and, as further described in note A5 in the

Glossary and definitions, this is recognised as an adjusting item.

188 Currys plc Annual Report & Accounts 2021/22

9 Intangible assets continued

Accounting policies continued

Software and licences

Software and licences include costs incurred to acquire the assets as well as internal infrastructure and design costs incurred

in the development of software in order to bring the assets into use.

Internally generated software is recognised as an intangible asset only if it can be separately identified, it is probable that

the asset will generate future economic benefits which exceed one year, and the development cost can be measured reliably.

Where these conditions are not met, development expenditure is recognised as an expense in the year in which it is incurred.

Costs associated with maintaining computer software are recognised as an expense as incurred unless they increase the future

economic benefits of the asset, in which case they are capitalised.

The expenditure capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads. Subsequent

expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates.

Software is stated at cost less accumulated amortisation and, where appropriate, provision for impairment in value or

estimated loss on disposal. Amortisation is provided and recorded in administrative expenses to write off the cost of assets

on a straight-line basis as follows:

Software and licenses 10.0% – 33.3% per annum

Intangible assets are assessed on an ongoing basis to determine whether circumstances exist that could lead to the conclusion

that the net book value is not supportable. Where assets are to be taken out of use, an impairment charge is levied. Where the

intangible assets form part of a separate CGU, such as a store or business unit, and business indicators exist which could lead

to the conclusions that the net book value is not supportable, the recoverable amount of the CGU is determined by calculating

its value in use. The value in use is calculated by applying discounted cash flow modelling to management’s projection of future

profitability and any impairment is determined by comparing the net book value with the value in use.

Cloud software licence agreements

Licence agreements to use cloud software are treated as service contracts and expensed in the consolidated income

statement, unless the Group has both a contractual right to take possession of the software at any time without significant

penalty, and the ability to run the software independently of the host vendor. In such cases the licence agreement is

capitalised as software within intangible assets. Costs to configure or customise a cloud software licence are expensed

alongside the related service contract in the consolidated income statement, unless they create a separately identifiable

resource controlled by the Group, in which case they are capitalised.

Acquisition intangibles

Brands

£m

Customer

relationships

£m

Sub-total

£m

Software and

licences

£m

Total

£m

Balance at 2 May 2021 191 – 191 235 426

Additions* – – – 83 83

Amortisation (24) – (24) (62) (86)

Impairment – – – (32) (32)

Foreign exchange (3) – (3) (3) (6)

Balance at 30 April 2022 164 – 164 221 385

Cost 369 73 442 883 1,325

Accumulated amortisation and impairment losses (205) (73) (278) (662) (940)

Balance at 30 April 2022 164 – 164 221 385

Included in net book value as at 30 April 2022

Assets in the course of construction – – – 9 9

Notes to the Group Financial Statements continued

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9 Intangible assets continued

Acquisition intangibles

Brands

£m

Customer

relationships

£m

Sub-total

£m

Software and

licences

£m

Total

£m

Balance at 3 May 2020 218 2 220 249 469

Additions* – – – 84 84

Amortisation (24) (2) (26) (57) (83)

Impairment (8) – (8) (47 ) (55)

Disposals – – – (1) (1)

Foreign exchange 5 – 5 7 12

Balance at 1 May 2021 191 – 191 235 426

Cost 372 73 445 802 1,247

Accumulated amortisation and impairment losses (181) (73) (254) (567) (821)

Balance at 1 May 2021 191 – 191 235 426

Included in net book value as at 1 May 2021

Assets in the course of construction – – – 50 50

* Software and licenses additions predominantly relate to internal development costs.

During the year ended 30 April 2022 management took the decision to stop selling its credit-based mobile offer. As a result,

software and licenses of £24m which could not be repurposed have been impaired in its UK & Ireland segment.

The Group continues the operational roll out of its long term strategic plan in moving towards a full omnichannel offering, bringing

stores and online together, giving customers the best of both worlds at scale. This change, accelerated by the pandemic, has resulted

in the identification of a material impairment charge over intangible assets in the UK & Ireland segment of £8m (2020/21: £46m)

primarily related to software development costs as the Group moves towards best-in-class cloud-based solutions to achieve

operational efficiencies and improve the customer journey. The assets impaired have a recoverable amount based on VIU of £nil.

Management continues to closely monitor the trading performance of the omnichannel business as we emerge from the pandemic

and acknowledged a change in consumer shopping habits between our store-mix during the year ended 30 April 2022. This led to

the identification and recognition of an impairment charge of £1m (2020/21: £1m) over store assets within the UK. Also in the current

period an impairment reversal (credit) of £1m (2020/21: £nil) was recognised on store assets which had been impaired in a prior

period but where indicators of impairment no longer exist. Recoverable amounts of the stores CGUs based on VIU is disclosed

in note 11.

During the year ended 1 May 2021, an £8m impairment was recognised in the UK & Ireland segment over acquisition intangibles, that

arose on the Dixons Retail Merger, following the decision to close the Dixons Travel business during the year ended 1 May 2021.

Further information on the impairments recognised in the year is disclosed in note A5 in the Glossary and definitions.

Individually material intangible assets

Customer relationships and brands include intangible assets which are considered individually material to the financial statements.

The primary intangible assets, their net book values and remaining amortisation periods are as follows:

30 April 2022 1 May 2021

Net book

value

£m

Remaining

amortisation

period

Years

Net book

value

£m

Remaining

amortisation

period

Years

Currys 83 8 94 9

Elgiganten 36 8 43 9

Elkjøp 27 8 31 9

Gigantti 18 8 22 9

190 Currys plc Annual Report & Accounts 2021/22

10 Property, plant & equipment

Accounting policies

Property, plant & equipment are stated at historical cost less accumulated depreciation and any accumulated impairment losses.

Assets under construction are held at cost less any accumulated impairment losses. Cost includes the original purchase price of

the asset, costs attributable to bringing the asset to the location and condition necessary for intended use and any capitalised

borrowing costs. Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the

specific asset to which it relates while maintenance related costs are recognised in the income statement when incurred.

With the exception of land, depreciation is provided to write off the cost of the assets over their expected useful lives from

the date the asset was brought into use or capable of being used on a straight-line basis. Rates applied to different classes

of property, plant & equipment are as follows:

Land and buildings 1.7% – 4.0% per annum

Fixtures, fittings and other equipment 10.0% – 33.3% per annum

Property, plant & equipment are assessed on an ongoing basis to determine whether circumstances exist that could lead to

the conclusion that the net book value is not supportable. Where assets are to be taken out of use, an impairment charge is

levied. Where the property, plant & equipment form part of a separate CGU, such as a store, and business indicators exist which

could lead to the conclusions that the net book value is not supportable, the recoverable amount of the CGU is determined

by calculating its value in use. The value in use is calculated by applying discounted cash flow modelling to management’s

projection of future profitability and any impairment is determined by comparing the net book value with the value in use.

Land and

buildings

£m

Fixtures, fittings

and other

equipment

£m

Total

£m

Balance at 2 May 2021 28 156 184

Additions 20 30 50

Depreciation (8) (54) (62)

Impairment (4) (2) (6)

Foreign exchange – (4) (4)

Balance as at 30 April 2022 36 126 162

Cost 70 681 751

Accumulated depreciation (34) (555) (589)

Balance as at 30 April 2022 36 126 162

Included in net book value as at 30 April 2022

Assets in the course of construction – 8 8

Land and

buildings

£m

Fixtures, fittings

and other

equipment

£m

Total

£m

Balance at 3 May 2020 25 215 240

Additions 9 17 26

Depreciation (6) (73) (79)

Disposals – (2) (2)

Impairment – (5) (5)

Foreign exchange – 4 4

Balance as at 1 May 2021 28 156 184

Cost 61 702 76 3

Accumulated depreciation (33) (546) (579)

Balance as at 1 May 2021 28 156 184

Included in net book value as at 1 May 2021

Assets in the course of construction – 15 15

During the year ended 30 April 2022 the Group announced that, as part of its hybrid-working policy, it would close its Acton Campus

and relocate to facilities operated by WeWork. As a result of this announcement an impairment charge of £6m on property, plant &

equipment was recognised in the UK & Ireland segment.

Notes to the Group Financial Statements continued

191

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11 Right-of-use assets

Accounting policies

Right-of-use assets are recognised at the commencement of the lease, when the underlying asset becomes available

for use, and comprises the initial measurement of the corresponding lease liability, lease payments made at or before

the commencement date, any initial direct costs and any dilapidation costs less any lease incentives received upon initial

recognition. They are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted

for any subsequent remeasurement of lease liabilities.

Right-of-use assets are depreciated on a straight-line basis over the shorter period of lease term and useful life of the

underlying asset.

Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the

right-of-use asset. The related payments are recognised as an expense in the period in which the event or condition that

triggers those payments occurs.

30 April

2022

£m

1 May

2021

£m

Land and buildings 983 1,026

Vehicles, equipment and other 24 25

1,007 1,051

Additions to the right-of-use assets for the period were £187m (2020/21: £137m).

The total cash outflow for leases amounts to £278m (2020/21: £310m).

Amounts recognised in the consolidated income statement

30 April

2022

£m

1 May

2021

£m

Depreciation expense on right-of-use assets:

Land and buildings 180 191

Vehicles, equipment and other 10 9

Total depreciation on right-of-use assets 190 200

Impairment of right-of-use assets 42 15

Impairment reversal of right-of-use assets (15) –

Interest expense on lease liabilities 70 77

Expense relating to short-term leases 11 10

Expense relating to leases of low value assets 1 1

Expense relating to variable lease payments not included in the measurement of the lease liability 2 5

Income from subleasing right-of-use assets – (3)

In March 2022 as part of its hybrid-working policy the Group announced it would close its Acton Campus and relocate to facilities

operated by WeWork. As a result of this announcement, an impairment of £25m was recognised over right-of-use assets. The lease

contains a lessor-only break option which, if exercised, could result in a material lease remeasurement and reversal of impairment

in a future period. In addition, during the period the Group negotiated an early termination settlement on a non-trading lease

premises which resulted in an impairment to right-of-use assets of £2m.

Management continues to closely monitor the trading performance of the omnichannel business as we emerge from the pandemic

and acknowledged a change in consumer shopping habits between our store-mix during the year ended 30 April 2022. This led to

the identification and recognition of an impairment charge of £15m (2020/21: £14m) over store assets within the UK. Also in the current

period an impairment reversal (credit) of £15m (2020/21: £nil) was recognised on store assets which had been impaired in a prior

period but where indicators of impairment no longer exist.

The impaired stores were impaired to their VIU recoverable amount of £33m, which is their carrying value at year end. The stores

with impairment reversals were written back to their VIU recoverable amount of £81m. The carrying values of the store assets CGUs

predominantly relates to right-of-use assets however also includes other fixed assets.

192 Currys plc Annual Report & Accounts 2021/22

12 Lease receivables

Accounting policies

A lease is classified as a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a

period of time in exchange for consideration.

The Group as a lessor

The Group is a lessor predominantly when subleasing retail store properties that are no longer open for trading. Whenever

the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified

as a finance lease.

Amounts due from lessees under finance leases are recognised as receivables at the amount of the Group’s net investment

in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on

the Group’s net investment outstanding in respect of the leases.

Under IFRS 16, an intermediate lessor accounts for the head lease and sublease as two separate contracts. The intermediate

lessor is required to classify the sublease as a finance or operating lease by reference to the right-of-use asset arising from

the head lease. The Group’s finance lease arrangements do not include variable payments.

30 April

2022

£m

1 May

2021

£m

Net investment in the lease analysed as:

Recoverable after 12 months 3 3

Recoverable within 12 months 1 1

4 4

The Group applies the simplified model in accordance with IFRS 9 to recognise lifetime expected credit losses on lease receivables.

The value of the expected credit loss on lease receivables is immaterial.

The Group is not exposed to foreign currency risk as a result of the lease arrangements, as all leases are denominated in

functional currency.

30 April

2022

£m

1 May

2021

£m

Undiscounted amounts receivable under finance leases:

Year 1 1 1

Year 2 1 1

Year 3 1 1

Year 4 1 1

Year 5 1 1

Onwards – –

Undiscounted amounts receivable 5 5

Less: unearned finance income (1) (1)

Net investment in the lease 4 4

Notes to the Group Financial Statements continued

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Strategic Report

13 Inventory

Accounting policies

Inventories are stated at the lower of cost and net realisable value, and on a weighted average cost basis. Cost comprises

direct purchase cost and those overheads that have been incurred in bringing the inventories to their present location and

condition, less any attributable discounts and income received from suppliers in respect of that inventory. Net realisable value

is based on estimated selling price, less further costs expected to be incurred to disposal. Provision is made for obsolete, slow

moving or defective items where appropriate.

Certain purchases of inventories may be subject to cash flow hedges to address foreign exchange risk. Where this is the case

a basis adjustment is made; the initial cost of hedged inventory is adjusted by the associated gain or loss transferred from the

cash flow hedge reserve.

30 April

2022

£m

1 May

2021

£m

Finished goods and goods for resale 1,286 1,178

14 Trade and other receivables

Accounting policies

Trade receivables are initially measured at their transaction price. Where there is a significant financing component, trade and

other receivables are discounted at contract inception using a discount rate that is at an arm’s length basis and such that would

be reflected in a separate financing transaction between the Group and the customer. Other receivables are initially measured

at fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial asset. Subsequently,

trade and other receivables are measured at amortised cost. The loss allowance for trade receivables, accrued income and

contract assets is measured using the simplified approach (lifetime expected credit losses). Loss allowance for other debtors

is measured using 12-month expected credit losses unless there is a significant increase in credit risk and then the loss allowance

is measured using lifetime expected credit losses. See note 25 for further disclosures.

30 April

2022

£m

1 May

2021

£m

Trade receivables 375 347

Less expected credit loss allowances (24) (21)

351 326

Contract assets 180 220

Prepayments 81 55

Other receivables 56 60

Accrued income 151 64

819 725

Non-current 123 138

Current 696 587

819 725

The majority of trade and other receivables are non-interest bearing. Non-current receivables mainly comprise commission

receivable on sales, as described below.

The Group has government grants receivable at the end of the period of £nil (2020/21: £3m). In the comparative period this related

to compensation for expenses already incurred by the Group that had been pledged by national governments in light of the

Covid-19 pandemic. This was included within Other receivables and is further disclosed in note 29.

194 Currys plc Annual Report & Accounts 2021/22

14 Trade and other receivables continued

As set out in the table below, adjustments are made in the trade receivables balance for expected credit loss allowances.

30 April 2022 1 May 2021

Gross trade

receivables

£m

Expected

credit loss

allowances

£m

Net trade

receivables

£m

Gross trade

receivables

£m

Expected

credit loss

allowances

£m

Net trade

receivables

£m

Ageing of gross trade receivables and expected

credit loss allowances:

Not yet due 303 (1) 302 308 (1) 307

Past due:

Under two months 29 (1) 28 13 (1) 12

Two to four months 6 (1) 5 5 (1) 4

Over four months 37 (21) 16 21 (18) 3

72 (23) 49 39 (20) 19

375 (24) 351 347 (21) 326

Movements in the expected credit loss allowances for trade receivables is as follows:

30 April

2022

£m

1 May

2021

£m

Opening balance (21) (26)

Charged to the income statement (10) (3)

Receivables written off as irrecoverable 3 4

Amounts recovered during the year 4 3

Disposal of business – 1

Closing balance (24) (21)

Management also consider the counterparty risk relating to its accrued income balance, which comprises amounts where the Group

has fulfilled its performance obligations but not yet invoiced the customer. The amounts are primarily due from large multinationals

and blue chip companies and hence the loss allowances made are not material. Further details with regards to trade receivables

credit risk are included in note 25.

Contract assets

30 April

2022

£m

1 May

2021

£m

Insurance commission contract assets 5 13

Network commission contract assets 175 207

180 220

The Group recognises contract assets where the performance obligations have been met but the right to consideration from the

customer is conditional on something other than the passage of time. This occurs on both insurance commission revenue and network

commission revenue as detailed in the accounting policies in note 3.

Upon the initial recognition of revenue from contracts with customers, the Group considers the risk profile for amounts due from

network and insurance customers based on historical experience and forward-looking information in accordance with IFRS 15. As

such, credit risk is factored into the initial recognition of revenue, while contract assets are adjusted at each reporting date to reflect

the future expected value. Therefore, no further expected credit loss is recognised as it is included within the initial measurement of

the Group’s contract assets. Further information is disclosed in note 25, while additional information on the measurement of expected

consideration is detailed below.

Notes to the Group Financial Statements continued

195

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Strategic Report

14 Trade and other receivables continued

Network commission contract assets and receivables

As described in the accounting policies in note 3, the revenue earned by the Group for the acquisition of consumers on behalf

of third-party network operators is subject to variable consideration. Some consideration is paid by the MNOs at the time of

connection with the remainder paid over the duration of the consumer’s contractual relationship with the MNO which is usually

between one and five years. Whilst the underlying contract with the consumer predominately constitutes a fixed monthly value,

variability arises due to future expected behaviour of such consumers after the point of connection.

Under IFRS 15: ‘Revenue from Contracts with Customers’ the Group only recognises revenue to the extent that it is highly probable

that there will not be a significant reversal in the future. Determining the amount of revenue to recognise is judgemental and subject

to a degree of estimation uncertainty in particular due to the nature of the variable revenue constraint applied in line with IFRS 15

as described in note 1d. In previous periods, the Group has estimated such revenue with a high level of accuracy, as evidenced

and regularly monitored by the level of cash the Group receives from MNOs in the periods subsequent to acquiring consumers

on their behalf.

In determining the amount of revenue to recognise, the Group estimates the amount that it expects to receive in respect of each

consumer based on historical trends and anticipated changes in consumer behaviour. The Group also discusses and analyses

emerging behavioural trends with the respective MNOs, considers external sources of industry and market analysis and models

the impact of potential regulatory changes, if any are proposed.

A discounted cash flow methodology is used to measure the expected consideration, by estimating all future cash flows that

will be received from the MNO and discounting these based on the timing of receipt. The key inputs to the model are:

• revenue share percentage – the percentage of the consumer’s spend (to the MNO) to which the Group is entitled;

• minimum contract period – the length of contract entered into by the consumer;

• out-of-bundle spend – additional spend by the consumer measured as a percentage of contractual spend;

• consumer default rate – rate at which consumers disconnect from the MNO;

• spend beyond the initial contract period – period of time the consumer remains connected to the MNO after the initial contract

term; and

• upgrade propensity – the percentage of consumers initially connected by the Group estimated to be subsequently upgraded

by an MNO.

Having estimated the expected consideration, the Group applies a constraint to reduce to a level where any future significant

reversal of revenue would be considered highly improbable. Management makes a regular assessment of historical amounts and

market data to ensure that the amounts recognised still meet the requirements of IFRS 15. In the current year ended 30 April 2022,

the net revaluation recognised from performance obligations satisfied in previous periods was an increase of £43m (2020/21: £3m).

196 Currys plc Annual Report & Accounts 2021/22

14 Trade and other receivables continued

Network commission contract assets and receivables continued

Amounts recognised in the financial statements in respect of such variable consideration are summarised and reconciled from prior

year below:

Note

30 April

2022

£m

1 May

2021

£m

Gross network commission receivable and contract asset: opening balance (i) 405 1,005

Less amounts received in advance from MNOs (166) (389)

Net network commission receivable and contract asset: opening balance (ii) 239 616

Revenue recognised in respect of current year sales (iii) 337 388

Revaluation of opening network commission contract asset (iv) 22 14

Revenue recognised/(reversed) in respect of prior period sales not previously included

in the estimation of revenue recognised (v) 21 (11)

Revenue recognised in respect of prior period sales 43 3

Revenue recognised in the period 380 391

Cash received from MNOs (vi) (431) ( 7 74)

Movements due to the effect of discounting 2 6

Net network commission receivable and contract asset: closing balance (vi i) 190 239

Comprising:

Net network commission receivable and contract asset in more than one year 84 100

Net network commission receivable and contract asset in less than one year 106 139

190 239

Less amount billed (network commission trade receivable) (viii) (15) (32)

Net network commission contract asset (ix) 175 207

(i) Net of discounting for the time value of money. The unwind of this discounting is recognised as finance income in the relevant period. The amount of related finance

income within the year, as shown in the table above, was £2m (2020/21: £6m).

(ii) Payment terms with the MNOs are based on a mix of cash received upon connection and future payments as the MNO receives monthly instalments from end

consumers over the life of the consumer contract. This balance shows the net amounts receivable from the MNOs. Further information is included below to explain the

classification split of this balance between trade receivables and contract assets.

(iii) This relates to revenue recognised from connections made in the current year. This revenue is recognised at point of sale as explained within the accounting policies in

note 3. This figure includes in-year adjustments to the carrying value of revenue recognised (net of constraints) where the estimated consideration has changed since

point of recognition within the year.

(iv) The Group continues to monitor the level of this revaluation as an indicator of estimation uncertainty in respect of previously recognised variable consideration. The

current year reflects a positive revaluation of the prior period contract asset and is what the Group would expect as a result of the variable revenue constraint under

IFRS 15. This revaluation of £22m (2020/21: £14m) discussed above is the figure that has historically been used by the Group to monitor the accuracy of assumptions

made in previous periods and is excluded from measuring the performance of the UK & Ireland segment in our APMs as explained within the Glossary and definitions.

This amount is also presented as the Group has received feedback from certain stakeholders that its separate presentation is helpful, in order to present more clearly

the underlying performance in year.

(v) These amounts were not previously recognised as revenue due to the application of the constraint (described above) and include a value of £11m (2020/21: £6m)

relating to the uplift in the profit share the Group receives associated with RPI on commission receivable where the performance obligations were satisfied in prior

periods. These amounts also include other out of period amounts settled with MNOs in respect of prior period transactions of £10m (2020/21: £(17)m). As the Group

does not recognise an estimate of these amounts within revenue at the point of sale, they are recognised in revenue within each financial year once the amounts for

that period are known. Therefore, the RPI uplift and the other out of period amounts settled with MNOs are included within the Group’s APMs as explained within the

Glossary and definitions.

(vi) Cash received in the period. For the prior year this includes the cash settlement of £189m received from EE on 1 April 2021 to settle the outstanding EE network debtor

receivable. The majority of this payment was previously expected over the course of 2021/22 and 2022/23.

(vii) Gross network receivable and contract asset balance of £281m, offset by amounts received in advance of £91m. This is in line with the explanation in (ii) above.

(viii) Amounts that have been invoiced to the network operators and are no longer conditional on something other than the passage of time. These amounts are therefore

classified as trade receivables.

(ix) This is the contract asset element of the network commissions receivable. This is variable based on future consumer behaviour and hence conditional on something

other than the passage of time. Therefore, as per IFRS 15, this is classified as a contract asset.

Notes to the Group Financial Statements continued

197

Governance

Financial Statements

Investor Information

Strategic Report

15 Cash and cash equivalents

Accounting policies

Cash and cash equivalents are classified as held at amortised cost, comprising cash at bank and in hand, bank overdrafts

and short-term highly liquid deposits which have an original maturity of less than three months, are available on demand and

are subject to an insignificant risk of changes in value. Bank overdrafts, which form part of cash and cash equivalents for the

purpose of the cash flow statement, are shown under current liabilities and further disclosed in note 18.

Cash and cash equivalents include restricted cash which predominantly comprises funds held by the Group’s insurance

businesses to cover regulatory reserve requirements. These funds are not available to offset the Group’s borrowings.

30 April

2022

£m

1 May

2021

£m

Cash at bank and on deposit 126 175

Included within cash and cash equivalents is £30m (2020/21: £35m) of restricted cash.

16 Trade and other payables

Accounting policies

Trade and other payables are initially recorded at fair value and subsequently measured at amortised cost.

Contract liabilities predominantly relate to the sale of customer support agreements. Revenue is recognised in full as each

performance obligation is satisfied under the contracts with the customer. Where consideration is received in advance of the

performance of the obligations being satisfied, a contract liability is recognised. Due to the cancellation options and customer

refund clauses, contract terms have been assessed to either be monthly or a series of day to day contracts with revenue

recognised respectively in the month to which payment relates, or on a straight-line basis.

30 April 2022 1 May 2021

Current

£m

Non-current

£m

Current

£m

Non-current

£m

Trade payables 1,614 – 1,420 –

Other taxes and social security 221 – 236 –

Other creditors 1 – 1 –

Contract liabilities 215 88 203 92

Accruals 317 8 373 5

2,368 96 2,233 97

The carrying amount of trade and other payables approximates their fair value.

Contract liabilities

30 April

2022

£m

1 May

2021

£m

Opening balance 295 276

Revenue recognised in the period that was included in the opening balance (196) (165)

Increase in contract liabilities in the period not yet recognised in revenue 204 184

Closing balance 303 295

198 Currys plc Annual Report & Accounts 2021/22

17 Contingent consideration

Accounting policies

On initial recognition, contingent consideration is measured at fair value using the income approach. Contingent consideration

that does not qualify as a measurement period adjustment is subsequently remeasured to fair value at each reporting date

with changes in fair value recognised in profit or loss.

30 April

2022

£m

1 May

2021

£m

Opening balance 2 3

Settlements (2) (1)

Closing balance – 2

During the year the Group cash-settled the final instalment of earn-out consideration, totalling £2m, for the previously acquired

Epoq kitchen business. For the year ended 1 May 2021 £2m remained contingent on the performance of the Epoq kitchen business

against earnings growth targets following the balance sheet date.

18 Loans and other borrowings

Accounting policies

Borrowings in the Group’s balance sheet represent bank loans drawn under committed and uncommitted facilities. Borrowings

are initially recorded at fair value less attributable transaction costs. Transaction fees such as bank fees and legal costs

associated with the securing of financing are capitalised and amortised through the income statement over the term of the

relevant facility. All other borrowing costs are recognised in the income statement in the period in which they are incurred.

Subsequent to initial recognition, borrowings are stated at amortised cost with any difference between cost and redemption

value being recognised in the income statement over the period of the borrowings on an effective interest basis.

Bank overdrafts, which form part of cash and cash equivalents for the purpose of the cash flow statement, are classified

as held at amortised cost.

30 April

2022

£m

1 May

2021

£m

Current liabilities

Bank overdrafts 2 6

2 6

Non-current liabilities

Loans and other borrowings 80 –

82 6

Notes to the Group Financial Statements continued

199

Governance

Financial Statements

Investor Information

Strategic Report

18 Loans and other borrowings continued

Committed facilities

In April 2021, the Group refinanced its existing debt with two new revolving credit facilities totalling £543m (2020/21: £551m), which

were initially due to expire in April 2025. In April 2022, the Group extended these two facilities by 1 year to expire in April 2026.

As part of the refinancing all other facilities available to the Group in April 2021 were cancelled. The Group’s facilities available

throughout the current and prior year are detailed below.

£200m Revolving credit facility

In April 2021, the Group signed a £200m revolving credit facility (‘RCF’) with a number of relationship banks which was initially due

to expire in April 2025. In April 2022, this facility was extended by one year to expire in April 2026. The interest rate payable for

drawings under this facility is at a margin over risk-free rates (or other applicable interest basis) for the relevant currency and for the

appropriate period. The actual margin applicable to any drawing depends on the fixed charges cover ratio calculated in respect

of the most recent accounting period. A non-utilisation fee is payable in respect of amounts available but undrawn under this facility

and a utilisation fee is payable when aggregate drawings exceed certain levels. At 30 April 2022, the Group had drawn down on this

facility by £80m. This facility was undrawn as at 1 May 2021.

NOK 4,036m Revolving credit facility

In April 2021, the Group signed a NOK 4,036m (£343m) (2020/21: £351m) RCF with a number of relationship banks which was initially

due to expire in April 2025. In April 2022, this facility was extended by one year to expire in April 2026. This is on broadly similar terms

to the £200m facility. This facility was undrawn as at 30 April 2022 and 1 May 2021.

Facilities previously available that have now lapsed or been cancelled

£800m Revolving credit facility

In October 2015, the Group signed a five-year £800m RCF with a number of relationship banks; this facility was extended in

October 2016 and 2017 by an additional year and the facility was due to expire in October 2022. The interest rate payable for

drawings under this facility was at a margin over LIBOR (or other applicable interest basis) for the relevant currency and for the

appropriate period. The actual margin applicable to any drawing depended on the fixed charges cover ratio calculated in respect

of the most recent accounting period. A non-utilisation fee was payable in respect of amounts available but undrawn under this

facility and a utilisation fee was payable when aggregate drawings exceeded certain levels. This facility was cancelled in April 2021.

£250m Revolving credit facility

In October 2016, the Group signed a four-year £250m RCF with a group of relationship banks; this facility was on broadly similar

terms to the £800m RCF; this facility was extended in February 2019 by an additional two years and the facility was due to expire

in October 2022. This facility was cancelled in April 2021.

£266m Revolving credit facility

In April 2020, the Group signed a one-year £266m RCF to mitigate any potential impact of the Covid-19 pandemic with a group of

relationship banks; this facility was on broadly similar terms to the £800m and £250m RCF. The facility was due to expire in April 2021

and was cancelled in February 2021 with no amounts having been drawn down.

€50m term loan

The Group had access to a €50m term loan with BBVA. The terms of this facility were broadly similar to the £800m and £250m RCF.

This facility expired in October 2020.

Uncommitted facilities

The Group also has overdrafts and short-term money market lines from UK and European banks denominated in various currencies,

all of which are repayable on demand. Interest is charged at the market rates applicable in the countries concerned and these

facilities are used to assist in short-term liquidity management. Total available facilities are £70m (2020/21: £70m).

All borrowings are unsecured.

200 Currys plc Annual Report & Accounts 2021/22

19 Lease liabilities

Accounting policies

The Group as a lessee

The Group’s leasing activities predominantly relate to retail store properties, distribution properties, and distribution vehicle

fleet. The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a

right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except

for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (which comprise

IT equipment and small items of office furniture). For these leases, the Group recognises the lease payments as an operating

expense on a straight-line basis over the term of the lease with no corresponding right-of-use asset.

Lease liabilities

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement

date, discounted by using the incremental borrowing rate and subsequently held at amortised cost in accordance with IFRS

9. The incremental borrowing rate is determined based on a series of inputs including: the risk-free rate based on government

bond rates; a country-specific risk adjustment; and a credit risk adjustment. This is the rate that the Group would have to pay

for a loan of a similar term, and with similar security, to obtain an asset of similar value.

Lease payments included in the measurement of the lease liability comprise:

• fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;

• variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

• the amount expected to be payable by the lessee under residual value guarantees;

• the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and

• payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

• The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment

of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments

using a revised discount rate.

• The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual

value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate

(unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).

• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease

liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a

revised discount rate at the effective date of the modification.

30 April

2022

£m

1 May

2021

£m

Analysed as:

Current 210 216

Non-current 1,057 1,110

1,267 1,326

Total undiscounted future committed payments due are as follows:

30 April

2022

£m

1 May

2021

£m

Amounts due:

Year 1 260 271

Year 2 236 253

Year 3 222 227

Year 4 187 200

Year 5 161 162

Onwards 485 534

1,551 1,647

The Group does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored within the Group’s

Treasury function.

Notes to the Group Financial Statements continued

201

Governance

Financial Statements

Investor Information

Strategic Report

20 Provisions

Accounting policies

Provisions are recognised when a legal or constructive obligation exists as a result of past events, it is probable that an outflow

of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are discounted where the time value of money is considered to be material.

Provisions for onerous contracts are recognised when the Group believes that the unavoidable costs of meeting or exiting the

contract exceed the economic benefits expected to be received under the contract. Where the Group has assets dedicated

to the fulfilment of a contract that cannot be redirected, an impairment loss is recognised before a separate provision for an

onerous contract.

A restructuring provision is recognised when the Group has developed a detailed formal plan for the restructuring, and

has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement the plan or

announcing its main features to those affected by it. The measurement of a restructuring provision includes only the direct

expenditures arising from the restructuring, which are those amounts that are both necessarily entailed by the restructuring

and not associated with the ongoing activities of the entity.

All provisions are assessed by reference to the best available information at the balance sheet date.

30 April 2022

Reorganisation

£m

Sales

£m

Property

£m

Other

£m

Total

£m

Balance at 2 May 2021 10 7 51 17 85

Additions 16 55 – – 71

Released in the period (1) – (17) (1) (19)

Utilised in the period (15) (49) (10) (4) (78)

Balance at 30 April 2022 10 13 24 12 59

Analysed as:

Current 9 12 20 7 48

Non-current 1 1 4 5 11

10 13 24 12 59

1 May 2021

Reorganisation

£m

Sales

£m

Property

£m

Other

£m

Total

£m

Balance at 3 May 2020 39 7 64 40 150

Additions 54 10 21 5 90

Released in the period (6) – (22) (19) (47 )

Utilised in the period (77) (11) (12) (9) (109)

Foreign exchange – 1 – – 1

Balance at 1 May 2021 10 7 51 17 85

Analysed as:

Current 10 5 34 9 58

Non-current – 2 17 8 27

10 7 51 17 85

202 Currys plc Annual Report & Accounts 2021/22

20 Provisions continued

Reorganisation

Reorganisation provisions of £3m have been provided for following management’s decision to stop selling its credit-based mobile

offer. This amount represents the unavoidable costs the Group is obligated to pay for services over the next two years which are

not applicable to its post-pay mobile offer.

In addition, £7m relates to redundancy costs for employees who are still employed at the reporting date but will be departing

within the following 12 months. Reorganisation provisions are only recognised when a detailed formal plan is in place and it has

been communicated to those affected. A further £6m has been recognised and utilised within the financial year as shown above.

Sales

Sales provisions relate to product and service warranties provided for up to one year. The anticipated costs of these are assessed

by reference to historical trends and any other information that is considered relevant. Management estimates the related provision

for future related claims based on historical information, as well as recent trends that might suggest that past cost information might

differ from future claims.

Property

Following the previously announced store closure programmes, the Group has a number of present obligations related to its property

portfolio that are explicitly excluded from the measurement of lease liabilities in accordance with IFRS 16. As such, at the reporting

date the Group has onerous contracts for unavoidable store closure costs including service fees, legal costs and dilapidations of

£23m primarily relating to the Currys PC World 3-in-1 programme and Carphone Warehouse store closures in the UK and Ireland.

Provisions for the costs described above are only recognised where there is a definitive business decision to exit a leased property,

it is believed the unavoidable cost of meeting or exiting the obligations exceed the expected benefit to be received and after any

impairment being recorded over right-of-use and store-related assets in accordance with IAS 36.

The amounts of future expenditures for store closure costs are reviewed throughout the year and are based on readily available

information at the reporting date as well as management’s historical experience of similar transactions.

Of the £23m related to closure programmes announced in prior periods, utilisation is to be incurred in conjunction with the profile of

the leases to which they relate. The longest lease will unwind over the next eight years. Where appropriate and in the interests of the

Group, management will proactively seek to exit any liabilities early. Where there is a substantive expectation that the unavoidable

costs provided for will be reduced as a result of exit negotiations, the provision will be remeasured based on the best available

information and an amount released, as seen in the period.

In addition and as announced in the prior reporting period, management made the decision to close the Dixons Travel business.

The Group has a provision of £1m as at 30 April 2022 which represents its remaining obligations under these contracts, which is

expected to be utilised in full within the following 12 months.

Other

Other provisions predominantly relate to regulatory costs. In the year ended 27 April 2019 the Group reported that it was subject

to a £29m fine imposed by the FCA following the conclusion of an investigation into historical Geek Squad mobile phone insurance

selling processes for a period prior to June 2015. The Group ran two voluntary customer redress programmes which led to the refund

of £1.5m paid in the year ended 2 May 2020.

The Group subsequently received claims from a number of customers who believe they were mis-sold Geek Squad policies.

All customer claims are carefully considered by the Group on a case by case basis with the majority of claims received being

invalid and no new claims having been received during the period. Nevertheless, the volume and value of outstanding claims remains

uncertain with utilisation of the provision expected to be incurred over the next two years as the Group continues to cooperate with

the relative authorities. Management estimates the related provision based on historical claims information and applying this against

any remaining potential claimants using an expected value approach. As at 30 April 2022, this particular provision had a carrying

value of £11m (2020/21: £13m), with a release of £1m recognised in the income statement during the period.

In determining the amounts to be provided management have considered the utilisation profile and do not consider the time value

of money to be material.

Notes to the Group Financial Statements continued

203

Governance

Financial Statements

Investor Information

Strategic Report

21 Retirement and other post-employment benefit obligations

Accounting policies

Company contributions to defined contribution pension schemes and contributions made to state pension schemes for certain

overseas employees are charged to the income statement on an accruals basis when employees have rendered service

entitling them to the contributions.

For defined benefit pension schemes, the difference between the market value of the assets and the present value of the

accrued pension liabilities is shown as an asset or liability in the consolidated balance sheet. The calculation of the present

value is determined using the projected unit credit method.

Actuarial gains and losses arising from changes in actuarial assumptions together with experience adjustments and actual

return on assets are recognised in the consolidated statement of comprehensive income and expensed as they arise. Such

amounts are not reclassified to the income statement in subsequent years.

Defined benefit costs recognised in the income statement comprise mainly of net interest expense or income with such interest

being recognised within finance costs. Net interest is calculated by applying the discount rate to the net defined benefit liability

or asset taking into account any changes in the net defined benefit obligation during the year as a result of contribution or

benefit payments.

30 April

2022

£m

1 May

2021

£m

Retirement benefit obligations – UK 257 482

– Nordics – –

257 482

The Group operates a defined benefit and a number of defined contribution schemes. The principal scheme which operates in

the UK includes a funded final salary defined benefit section whose assets are held in a separate trustee administered fund. The

scheme is valued by a qualified actuary at least every three years and contributions are assessed in accordance with the actuary’s

advice. Since 1 September 2002, the defined benefit section of the scheme has been closed to new entrants and on 30 April 2010

was closed to future accrual with automatic entry into the defined contribution section being offered to those active members of

the defined benefit section at that time. Membership of the defined contribution section is offered to eligible employees.

In the Nordics division, the Group operates small funded secured defined benefit pension schemes, which are also closed to new

entrants, with assets held by a life insurance company as well as an unsecured pension arrangement. In addition, contributions are

made to state pension schemes with defined benefit characteristics.

The defined benefit pension schemes expose the Group to actuarial risks such as longer than expected longevity of members,

lower than expected return on investments and higher than expected inflation, which may increase the liabilities or reduce the value

of assets of the plans.

a) Defined contribution pension schemes

The pension charge in respect of defined contribution schemes was £30m (2020/21: £34m).

b) UK defined benefit pension scheme – actuarial valuation and assumptions

A full actuarial valuation of the scheme was carried out as at 31 March 2019 and showed a shortfall of assets compared with

liabilities of £645m. A ‘recovery plan’ based on this valuation was agreed with the Trustees such that contributions in respect of

the scheme were £47m for the 2020/21 financial year, rising to £78m per year from the 2021/22 financial year until 2027/28,

with a final payment of £52m in 2028/29. The next triennial actuarial valuation will be carried out as at 31 March 2022.

204 Currys plc Annual Report & Accounts 2021/22

21 Retirement and other post-employment benefit obligations continued

b) UK defined benefit pension scheme – actuarial valuation and assumptions continued

The principal actuarial assumptions as at 31 March 2019 were:

Rate per annum

Discount rate for accrued benefits* – Equity portfolio 3.85%

– Multi-asset credit portfolio 3.00%

– Matching portfolio 1.50%

Rate of increase to pensions 0.00% – 3.80%

Inflation 3.40%

* The discount rate is based on a linear de-risking methodology which assumes the Scheme’s investment strategy switches investments from growth assets (such as

equities) to matching assets (such as bonds) and multi-asset credit over a period of eight years from 2026 to 2034 so that by 2034 the asset portfolio is projected to

be 100% invested in matching assets and multi-asset credit.

At 31 March 2019, the market value of the scheme’s investments was £1,210m and, based on the above assumptions, the value of the

assets was sufficient to cover 65% of the benefits accrued to members with the liabilities amounting to £1,855m.

c) UK Defined benefit pension scheme – IAS 19

The following summarises the components of net defined benefit expense recognised in the consolidated income statement,

the funded status and amounts recognised in the consolidated balance sheet and other amounts recognised in the consolidated

statement of comprehensive income. The methods set out in IAS 19 are different from those used by the scheme actuaries in

determining funding arrangements.

(i) Principal assumptions adopted

The assumptions used in calculating the expenses and obligations are set by the directors after consultation with the independent

actuaries.

Rates per annum

30 April

2022

1 May

2021

Discount rate 3.05% 1.90%

Rate of increase in pensions in payment/deferred pensions (pre/post April 2006 accrual) 3.30%/2.25% 3.20%/2.20%

Inflation 3.40% 3.20%

The Group uses demographic assumptions underlying the formal actuarial valuation of the scheme as at 31 March 2019. Post-

retirement mortality has been assumed to follow the standard mortality tables ‘S3’ All Pensioners tables published by the CMI,

based on the experience of Self-Administered Pension Schemes (‘SAPS’) with multipliers of 108% for males and 104% for females.

In addition, an allowance has been made for future improvements in longevity by using the new CMI 2021 Core projections with a

long term rate of improvement of 1.5% per annum for men and 1.25% per annum for women. Applying such tables results in an average

expected longevity of between 86.5 years and 88.1 years for men and between 89.0 years and 90.5 years for women for those

reaching 65 over the next 20 years.

(ii) Amounts recognised in the consolidated income statement

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Past service cost – 1

Net interest expense on defined benefit obligation 8 8

Total expense recognised in the income statement 8 9

On 20 November 2020, the High Court issued a judgement in relation to historical transfer values impacted by Guaranteed Minimum

Pensions (‘GMPs’) equalisation in the Lloyds Banking Group’s defined benefits pension schemes. This judgement was in addition to an

earlier judgement on unequal GMPs in October 2018. We estimated that this will increase the liability by £1m, and therefore recorded

this as a past service cost in the year ended 1 May 2021.

Notes to the Group Financial Statements continued

205

Governance

Financial Statements

Investor Information

Strategic Report

21 Retirement and other post-employment benefit obligations continued

c) UK Defined benefit pension scheme – IAS 19 continued

(iii) Amounts recognised in other comprehensive income

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Remeasurement of defined benefit obligation – actuarial gains/(losses) arising from:

Changes in demographic assumptions 3 (4)

Changes in financial assumptions 334 (70)

Experience adjustments (85) 17

Remeasurement of scheme assets:

Actual return on plan assets (excluding amounts included in net interest expense) (96) 87

Cumulative actuarial gain 156 30

(iv) Amounts recognised in the consolidated balance sheet

30 April

2022

£m

1 May

2021

£m

Present value of defined benefit obligations (1,620) (1,885)

Fair value of plan assets 1,363 1,403

Net obligation (257) (4 8 2)

Changes in the present value of the defined benefit obligation:

30 April

2022

£m

1 May

2021

£m

Opening obligation 1,885 1,850

Past service cost – 1

Interest cost 35 29

Remeasurements in other comprehensive income – actuarial (gains)/losses arising from changes in:

Demographic assumptions (3) 4

Financial assumptions (334) 70

Experience adjustments 85 (17)

Benefits paid (49) (52)

Closing obligation 1,620 1,885

The weighted average maturity profile of the defined benefit obligation at the end of the year is 20 years (2020/21: 20 years),

comprising an average maturity of 25 years (2020/21: 25 years) for deferred members and 12 years (2020/21: 12 years) for pensioners.

Changes in the fair value of the scheme assets:

30 April

2022

£m

1 May

2021

£m

Opening fair value 1,403 1,300

Interest income 27 21

Employer contributions 78 47

Remeasurements in other comprehensive income:

Actual return on plan assets (excluding interest income) (96) 87

Benefits paid (49) (52)

Closing fair value 1,363 1,403

206 Currys plc Annual Report & Accounts 2021/22

21 Retirement and other post-employment benefit obligations continued

c) UK Defined benefit pension scheme – IAS 19 continued

(iv) Amounts recognised in the consolidated balance sheet continued

Analysis of scheme assets:

30 April

2022

£m

1 May

2021

£m

Multi-asset credit funds – Listed 215 125

– Unlisted 226 176

Private equity – Unlisted 10 18

Corporate bonds – Listed – 110

Other credit linked funds* – Listed 426 345

– Unlisted – 41

Liability driven investments (‘LDIs’)* – Listed 819 104

– Unlisted (599) (4 3)

Synthetic equity* – Unlisted 250 499

Cash and cash instruments – Listed – –

– Unlisted 15 27

Other – Unlisted 1 1

1,363 1,403

* These assets are managed together as part of one investment portfolio.

The table above provides the market value of the scheme assets split into key categories as at 30 April 2022. The scheme’s

investment strategy is to:

• gain economic exposure to equity markets equivalent to a third of its assets through derivatives;

• invest a third of its assets in credit markets; and

• use a third of its assets to hedge inflation and interest rate risk.

The scheme invests part of its assets in a bespoke fund to achieve this strategy. The fund consists of a synthetic equity portfolio,

a credit portfolio and a liability hedging portfolio. The synthetic equity portfolio uses equity total return swaps and equity futures

to provide economic exposure to a range of equity markets while the credit portfolio provides economic exposure to short duration

global credit. The objective of the liability hedging portfolio is to hedge the scheme’s liabilities against inflation and interest rate risk

up to the value of the scheme’s assets.

In the fair value hierarchy, listed investments are categorised as level 1. Unlisted investments (including unlisted LDIs and synthetic

equity) relate to derivatives, which are categorised as level 2, and private credit and private equity funds which are categorised

as level 3. Private credit investments are valued by aggregating bid and offer quotes from brokers where this information is available.

If this information is not available, investments are valued at amortised cost, with provision for impairment where appropriate. Private

equity fund valuations are based on the last audited accounts of each investment plus any known movements including distributions

since the last audited accounts.

The investment strategy of the scheme is determined by the independent Trustees through advice provided by an independent

investment consultant. The Trustee’s objective is to achieve an above average long term return on the scheme’s assets from a mixture

of capital growth and income, whilst managing investment risk and ensuring the strategy remains within the guidelines set out in the

Pensions Act 1995 and 2004 and the scheme’s statement of investment principles. In setting the strategy, the nature and duration of

the Scheme’s liabilities are taken into account, ensuring that an integrated approach is taken to investment risk and both short-term

and long-term funding requirements. The scheme invests in a diverse range of asset classes as set out above with matching assets

primarily comprising holdings in inflation linked gilts, corporate bonds and liability driven investments.

To reduce volatility risk a liability driven investment (‘LDI’) strategy forms part of the Trustee’s management of the UK defined benefit

scheme’s assets, including government bonds, corporate bonds and derivatives. Repurchase agreements are entered into with

counterparties to better offset the scheme’s exposure to interest and inflation rates, whilst remaining invested in assets of a similar

risk profile. Interest rate and inflation rate derivatives are also employed to complement the use of fixed and index-linked bonds

in matching the profile of the scheme’s liabilities.

Actual return on the scheme assets was a loss of £96m (2020/21: gain of £87m).

Notes to the Group Financial Statements continued

207

Governance

Financial Statements

Investor Information

Strategic Report

21 Retirement and other post-employment benefit obligations continued

c) UK Defined benefit pension scheme – IAS 19 continued

(v) Sensitivities

The value of the UK defined benefit pension scheme assets is sensitive to market conditions. Changes in assumptions used for

determining retirement benefit costs and liabilities may have a material impact on the 2022/23 income statement and the balance

sheet. The main assumptions are the discount rate, the rate of inflation and the assumed mortality rate. The following table provides

an estimate of the potential impacts of each of these variables if applied to the current year consolidated income statement and

consolidated balance sheet.

Net finance costs Net deficit

Positive/(negative) effect

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Discount rate: 0.5% increase 2 1 139 179

Inflation rate: 0.5% increase* (3) (2) (110) (147)

Mortality rate: 1-year increase (1) (1) (65) (75)

* The increase in scheme benefits provided to members on retirement is subject to an inflation cap.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is

unlikely that the changes in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

d) Other post-employment benefits – IAS 19

The Group offers other post-employment benefits to employees in overseas territories, in particular in Greece. These benefits are

unfunded. At 30 April 2022 the net obligation in relation to these benefits was £1m (2020/21: £5m) which is included in trade and

other payables.

22 Share capital, retained earnings and reserves

a) Share capital

30 April

2022

million

1 May

2021

million

30 April

2022

£m

1 May

2021

£m

Authorised, allotted, called-up and fully paid ordinary shares

of 0.1p each 1,133 1,166 1 1

30 April

2022

million

1 May

2021

million

30 April

2022

£m

1 May

2021

£m

Ordinary shares of 0.1p each in issue at the beginning of the period 1,166 1,162 1 1

Issued during the period – 4 – –

Repurchased and cancelled during the period (33) – – –

Ordinary shares of 0.1p each in issue at the end of the period 1,133 1,166 1 1

On 4 November 2021 the Group announced its intention to repurchase £75m of ordinary shares as a part of a share buyback

programme. During the period the Company bought back an initial tranche of 32,963,792 ordinary shares of 0.1p each. The Company

paid cash consideration of £32m at an average price of 98p per ordinary share. The repurchased shares were cancelled in the

period, with the nominal value of the cancelled shares transferred to the capital redemption reserve.

At the reporting date the broker had not been contracted to commence the next tranche of the buyback and therefore the Group

is under no obligation to purchase further shares for cancellation up to the previously announced amount and as such no liability

has been recognised. The next tranche of the buyback is intended to begin in 2022/23.

During the year ended 1 May 2021, 4,098,442 ordinary shares with nominal value of 0.1p each were issued for consideration at

nominal value to satisfy awards under the Group’s share option schemes.

208 Currys plc Annual Report & Accounts 2021/22

22 Share capital, retained earnings and reserves continued

b) Retained earnings and reserves

Movements in retained earnings and reserves during the reported periods are presented in the consolidated statement of changes

in equity. Movements within the individual reserves are as follows:

Hedging

reserve

£m

Investments

revaluation

reserve

£m

Treasury

reserve

£m

Investment

in own share

reserve

£m

Translation

reserve

£m

Demerger

reserve

£m

Total

£m

As at 2 May 2020 8 10 – (13) (30) (750) (775)

Other comprehensive income and expense

recognised directly in equity (4 0) 8 – – 46 – 14

Amounts transferred to the carrying value of

inventory purchased during the year 24 – – – – – 24

Amounts transferred to accumulated profits – (18) – 4 – – (14)

Purchase of own shares – EBT – – – (13) – – (13)

As at 1 May 2021 (8) – – (22) 16 (750) (764)

Other comprehensive income and expense

recognised directly in equity (17) – – – (33) – (50)

Amounts transferred to the carrying value of

inventory purchased during the year 28 – – – – – 28

Amounts transferred to accumulated profits – – – 24 – – 24

Purchase of own shares – EBT – – – (41) – – (41)

Purchase of own shares – share buyback – – (32) – – – (32)

Cancellation of treasury shares – – 32 – – – 32

As at 30 April 2022 3 – – (39) (17) (750) (803)

Hedging reserve

The hedging reserve is used to recognise the effective portion of gains or losses on derivatives that are designated and qualify as cash

flow hedges. Amounts are subsequently either transferred to the initial cost of inventory or reclassified to profit or loss as appropriate.

Investment revaluation reserve

The Group previously held an equity investment in Unieuro S.p.A, an Italian retailer of consumer electronics and household

appliances listed on the Borsa Italiana. The Group subsequently disposed of the equity instruments for consideration of £18m during

the year ended 1 May 2021 as it no longer aligned to the Group’s long-term strategic direction.

Treasury share reserve

The treasury share reserve represents the repurchase of shares recognised as equity in the parent company, Currys plc. Repurchased

shares are classified as treasury shares and presented in the treasury share reserve at cost, inclusive of any directly attributable cost

as disclosed above, as a deduction in total equity. When treasury shares are cancelled, the cost of those cancelled is transferred

to accumulated profits.

All shares purchased by the Company as treasury shares in the period were done so as part of the buyback programme previously

announced on 4 November 2021. All shares purchased in treasury during the period were subsequently cancelled.

Investment in own shares reserve

The investment in own shares reserve is used to recognise the cost of shares in the Company held by the EBT. As further disclosed

in note 4c the shares held by the EBT are purchased in order to satisfy share option and SAYE plans issued by the Company as part

of employee share incentive schemes.

When shares are issued by the EBT to employees in order to satisfy employee share awards, the cost of these shares is transferred

to accumulated profits.

Translation reserve

The translation reserve accumulates exchange differences arising on translation of foreign subsidiaries which are recognised in other

comprehensive income. The cumulative amount is reclassified to accumulated profits when the related net investment is disposed of.

Demerger reserve

The demerger reserve arose as part of the demerger of the Group from TalkTalk in 2010.

Notes to the Group Financial Statements continued

209

Governance

Financial Statements

Investor Information

Strategic Report

23 Equity dividends

30 April

2022

£m

1 May

2021

£m

Final dividend for the year ended 2 May 2020 of nil per ordinary share – –

Interim dividend for the year ended 1 May 2021 of nil per ordinary share – –

Final dividend for the year ended 1 May 2021 of 3.00p per ordinary share 34 –

Interim dividend for the year ended 30 April 2022 of 1.00p per ordinary share 12 –

Amounts recognised as distributions to equity shareholders in the period – on ordinary shares of

0.1p each 46 –

The following distribution is proposed but has not been effected at 30 April 2022 and is subject to shareholders’ approval at the

forthcoming Annual General Meeting:

£m

Final dividend for the year ended 30 April 2022 of 2.15p per ordinary share 24

The payment of this dividend will not have any tax consequences for the Group.

24 Discontinued operations and assets held for sale

Accounting policies

A discontinued operation is a component of the Group which represents a significant separate line of business, either through

its activity or geographical area of operation, which has been sold, is held for sale or has been closed.

Where the sale of a component of the Group is considered highly probable at the balance sheet date and the business

is available for immediate sale in its present condition, it is classified as held for sale. Such classification assumes the

expectation that the sale will complete within one year from the date of classification. Assets and liabilities held for sale are

measured at the lower of carrying amount and fair value less costs to sell. Once classified as held for sale, intangible assets

and property, plant and equipment are no longer amortised or depreciated.

There have been no additional operations classified as discontinued during the year ended 30 April 2022. The following were

classified as discontinued in previous years and have continued to incur costs and cash flows in the current financial year:

honeybee

No profit or loss has been recognised in relation to the disposal of the honeybee operation in the current or comparative period.

During the year the Group received the final cash payment of £1m for the disposal of trade and assets in relation to the honeybee

operations (2020/21: £2m).

Spain

On 29 September 2017, the Group completed the disposal of The Phone House Spain S.L.U., Connected World Services Europe S.L.

and Smarthouse Spain S.A., which together represented the trading operations in Spain. For the year ended 1 May 2021, a £2m credit

was recognised in relation to the reversal of previously held provisions no longer required. No further costs in relation to the disposal

have been recognised during the period. Further information on the contingent liability that the Group has recognised in relation to

the disposal can be found in note 31.

Other

No profit or loss or cash flows have been recognised in relation to other previously disposed operations during the period.

In prior periods the Group had deemed it probable that it would need to pay amounts covered by warranties provided under the

sale agreement for the previously disposed Phonehouse Germany business. The claim was subsequently settled in the second half

of the year ended 1 May 2021. The Group subsequently recorded a cash outflow of £3m and released excess amounts provided,

thereby recognising a credit of £5m in the income statement as the provision was reduced to £nil.

As a result of the settlement as set out above the Group does not expect any further warranty claims in respect of tax risks in territories

within which the legacy Carphone group used to operate. As such, a further £5m was released during the year ended 1 May 2021.

210 Currys plc Annual Report & Accounts 2021/22

24 Discontinued operations and assets held for sale continued

a) Profit after tax from discontinued operations

Year ended 30 April 2022 Year ended 1 May 2021

honeybee

£m

Spain

£m

Other

£m

Total

£m

honeybee

£m

Spain

£m

Other

£m

Total

£m

Revenue – – – – – – – –

Expenses – – – – – 2 5 7

Profit before tax – – – – – 2 5 7

Income tax – – – – – – 5 5

– – – – – 2 10 12

b) Cash flows from discontinued operations

Year ended 30 April 2022 Year ended 1 May 2021

honeybee

£m

Spain

£m

Other

£m

Total

£m

honeybee

£m

Spain

£m

Other

£m

Total

£m

Operating activities – – – – – – (3) (3)

Investing activities 1 – – 1 2 – – 2

1 – – 1 2 – (3) (1)

25 Financial risk management and derivative financial instruments

Accounting policies

Non-derivative financial assets

Financial assets are recognised in the Group’s balance sheet when the Group becomes party to the contractual provisions

of the investment. The Group’s financial assets comprise cash and cash equivalents, receivables which involve a contractual

right to receive cash from external parties, and for the prior period, financial assets designated as at fair value through

other comprehensive income (‘FVTOCI’). Financial assets comprise all items shown in notes 12, 14 and 15 with the exception of

prepayments and contract assets.

When the Group recognises a financial asset, it classifies it in accordance with IFRS 9 depending on the Group’s intention with

regard to the collection, or sale, of contractual cash flows and whether the financial asset’s cash flows relate solely to the

payment of principal and interest on principal outstanding. All of the Group’s assets measured at amortised cost are subject

to impairments driven by the expected credit loss model as further stipulated in note 14 and below.

Financial assets are derecognised when the contractual rights to the cash flows expire or the Group has transferred the

financial asset in a way that qualifies for derecognition in accordance with IFRS 9.

The Group reviews several factors when considering a significant increase in credit risk including but not limited to: credit rating

changes; adverse changes in general economic and/or market conditions; and material changes in the operating results or

financial position of the debtor. Indicators that an asset is credit-impaired would include: observable data in relation to the

financial health of the debtor; significant financial difficulty of the issuer or the debtor; the debtor breaches contract; or it is

probable that the debtor will enter bankruptcy or financial reorganisation.

Non-derivative financial liabilities

The Group’s financial liabilities are those which involve a contractual obligation to deliver cash to external parties at a

future date. Financial liabilities comprise all items shown in notes 16 to 19 with the exception of other taxes and social security,

contract liabilities and accruals for wages, bonuses and holiday pay. Financial liabilities are recognised in the Group’s

balance sheet when the Group becomes a party to the contractual provisions of the instrument. Financial liabilities (or a part

of a financial liability) are derecognised when the obligation specified in the contract is discharged, cancelled or expires.

In the event that the terms in which the Group are contractually obliged are substantially modified, the financial liability to

which it relates is derecognised and subsequently re-recognised on the modified terms.

Where the Group has the right and intention to offset in relation to financial assets and liabilities under IAS 32, these are

presented on a net basis.

Notes to the Group Financial Statements continued

211

Governance

Financial Statements

Investor Information

Strategic Report

25 Financial risk management and derivative financial instruments continued

Accounting policies continued

Derivatives

The Group uses derivatives to manage its exposures to fluctuating interest and foreign exchange rates. These instruments

are initially recognised at fair value on the date the contract is entered into and are subsequently remeasured to fair value at

each prevailing balance sheet date and are recorded within assets or liabilities as appropriate. The treatment of the resulting

gain or loss depends on whether the derivative is designated as a hedging instrument and if so, the nature of the item being

hedged. Derivatives that qualify for hedge accounting are treated as a hedge of a highly probable forecast transaction

(cash flow hedge) in the case of foreign exchange hedging, and a hedge of the exposure arising from changes in the cash flows

of a financial liability due to interest rate risk on a floating rate debt instrument in the case of interest rate hedging.

Cash flow hedge accounting

At inception the relationship between the hedging instrument and the hedged item is documented, as well as an assessment

of the effectiveness of the derivative instrument used in the hedging transaction in offsetting changes in the cash flow of the

hedged item. This effectiveness assessment is repeated on an ongoing basis during the life of the hedging instrument to ensure

that the instrument remains an effective hedge.

The effective portion of changes in the fair value is recognised in other comprehensive income and accumulated in the cash

flow hedge reserve. Any gain or loss relating to the ineffective portion is recognised immediately in the income statement

within finance costs. Amounts recognised in other comprehensive income and accumulated in the cash flow hedge reserve

are recycled to the income statement, in the same line as the recognised hedged item, in the period when the hedged item

will affect profit or loss. If the hedging instrument expires or is sold, or no longer meets the criteria for hedge accounting,

any cumulative gain or loss existing in other comprehensive income at that time remains in other comprehensive income and

is recognised when the forecast transaction is ultimately recognised in the income statement. If the forecast transaction is no

longer expected to occur, the cumulative gain or loss in other comprehensive income is immediately transferred to the income

statement and recognised within finance costs.

Where hedged forecast transactions result in the recognition of a non-financial asset or liability, the gains and losses

previously recognised and accumulated in the cash flow hedge reserve are subsequently removed and included in the initial

cost of the non-financial asset or liability. Such transfers will not affect other comprehensive income.

Derivatives that do not qualify for hedge accounting

Derivatives that do not qualify for hedge accounting are classified at fair value through profit or loss. All changes in fair value

of derivative instruments that do not qualify for hedge accounting are recognised immediately in the income statement within

the same line as the item that is hedged economically.

The carrying amount of the Group’s financial assets, liabilities and derivative financial instruments are as follows:

30 April

2022

£m

1 May

2021

(restated)*

£m

Lease receivables

(3)

4 4

Cash and cash equivalents

(1)

126 175

Trade and other receivables

(1)

558 450

Derivative financial assets

(2)

28 24

Derivative financial liabilities

(2)

(11) (4 2)

Trade and other payables

(1)

(1,808) (1,628)

Contingent consideration

(2)

– (2)

Loans and other borrowings

(1)

(82) (6)

Lease liabilities

(3)

(1,267) (1,326)

* Trade and other payables has been restated for the comparative period to exclude £171m of accruals that do not meet the definition of financial liabilities.

(1) Held at amortised cost.

(2) Held at fair value through profit or loss.

(3) Measured in accordance with IFRS 16: ‘Leases’.

212 Currys plc Annual Report & Accounts 2021/22

25 Financial risk management and derivative financial instruments continued

Financial instruments that are measured at fair value in the financial statements require disclosure of fair value measurements

by level based on the following fair value measurement hierarchy:

• Level 1 – quoted prices (unadjusted) in active markets for identical assets and liabilities;

• Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly

(that is, as prices) or indirectly (that is, derived from prices);

• Level 3 – inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

Listed investments held are categorised as level 1 in the fair value hierarchy and are valued based on quoted bid prices in an

active market.

Contingent consideration is categorised as level 3 in the fair value hierarchy as the valuation requires the use of significant

unobservable inputs. An explanation of the valuation methodologies and the inputs to the valuation model are provided in note 17.

The fair value of contingent consideration was immaterial in the prior year and £nil in the current year, due to the consideration being

settled, therefore no additional disclosure was provided. The impact of Covid-19 has had no material impact on the fair value of

contingent consideration.

The significant inputs required to measure the Group’s remaining financial instruments at fair value on the balance sheet, being

derivative financial assets and liabilities, are observable and are classified as level 2 in the fair value hierarchy. There have also

been no transfers of assets or liabilities between levels of the fair value hierarchy.

Fair values have been arrived at by discounting future cash flows (where the impact of discounting is material), assuming no

early redemption, or by revaluing forward currency contracts and interest rate swaps to period end market rates as appropriate

to the instrument.

Management consider that the carrying amount of financial assets and liabilities recorded at amortised cost and their fair value

are not materially different.

Offsetting financial assets and financial liabilities

The Group has forward foreign exchange contracts that are subject to enforceable master netting arrangements. Under these

master netting agreements gross assets and liabilities could be offset in the case of a counterparty default.

(i) Financial assets

30 April 2022

Gross amounts

of recognised

financial assets

£m

Gross amounts of

recognised financial

liabilities set off in

the balance sheet

£m

Net amounts of

financial assets

presented in the

balance sheet

£m

Financial

instruments not

set off in the

balance sheet

£m

Net

amount

£m

Forward foreign exchange contracts* 28 – 28 (11) 17

28 – 28 (11) 17

1 May 2021

Gross amounts

of recognised

financial assets

£m

Gross amounts of

recognised financial

liabilities set off in

the balance sheet

£m

Net amounts of

financial assets

presented in the

balance sheet

£m

Financial

instruments not

set off in the

balance sheet

£m

Net

amount

£m

Forward foreign exchange contracts* 24 – 24 (23) 1

24 – 24 (23) 1

* The forward foreign exchange contract assets and liabilities are recognised within the statement of financial position as derivative assets and derivative liabilities

respectively. The change in fair value of the forward foreign exchange contract assets is accounted for as a qualifying cash flow hedge.

Notes to the Group Financial Statements continued

213

Governance

Financial Statements

Investor Information

Strategic Report

25 Financial risk management and derivative financial instruments continued

Offsetting financial assets and financial liabilities continued

(ii) Financial liabilities

30 April 2022

Gross amounts

of recognised

financial liabilities

£m

Gross amounts of

recognised financial

assets set off in the

balance sheet

£m

Net amounts of

financial liabilities

presented in the

balance sheet

£m

Financial

instruments not

set off in the

balance sheet

£m

Net

amount

£m

Forward foreign exchange contracts* (11) – (11) 11 –

(11) – (11) 11 –

1 May 2021

Gross amounts

of recognised

financial liabilities

£m

Gross amounts of

recognised financial

assets set off in the

balance sheet

£m

Net amounts of

financial liabilities

presented in the

balance sheet

£m

Financial

instruments not

set off in the

balance sheet

£m

Net

amount

£m

Forward foreign exchange contracts* (42) – (4 2) 23 (19)

(42) – (42) 23 (19)

* The forward foreign exchange contract assets and liabilities are recognised within the statement of financial position as derivative assets and derivative liabilities

respectively. The change in fair value of the forward foreign exchange contract assets is accounted for as a qualifying cash flow hedge.

a) Financial risk management policies

The Group’s activities expose it to certain financial risks including market risk (such as foreign exchange risk and interest rate risk),

credit risk and liquidity risk. The Group’s Treasury function, which operates under treasury policies approved by the Board, uses

certain financial instruments to mitigate potentially adverse effects on the Group’s financial performance from these risks. These

financial instruments consist of bank loans and deposits, spot and forward foreign exchange contracts, foreign exchange swaps

and interest rate swaps.

Throughout the period under review, in accordance with Group policy, no speculative use of derivatives or other instruments

was permitted. No contracts with embedded derivatives have been identified and, accordingly, no such derivatives have been

accounted for separately.

b) Foreign exchange risk

The Group undertakes certain transactions that are denominated in foreign currencies and as a consequence has exposure to

exchange rate fluctuations. These exposures primarily arise from inventory purchases, with most of the Group’s exposure being to

Euro and US Dollar. The Group uses spot and forward currency contracts to mitigate these exposures, with such contracts designed

to cover exposures ranging from one month to one year.

The translation risk on converting overseas currency profits or losses is not hedged and such profits or losses are converted into

Pound Sterling at average exchange rates throughout the year. The Group’s principal translation currency exposures are the Euro

and Norwegian Krone.

At 30 April 2022, the total notional principal amount of outstanding currency contracts was £1,698m (2020/21: £2,872m) and had

a net fair value of £17m asset (2020/21: £18m liability). Monetary assets and liabilities and foreign exchange contracts are sensitive

to movements in foreign exchange rates.

214 Currys plc Annual Report & Accounts 2021/22

25 Financial risk management and derivative financial instruments continued

b) Foreign exchange risk continued

The impact of fluctuations in foreign exchange rates on profit/loss is mitigated by using offsetting exposures and non-hedged

derivatives, however there may be residual minimal impact on profit/loss from residual exposures that are not fully matched.

This sensitivity can be analysed in comparison to year end rates (assuming all other variables remain constant) as follows:

Year ended 30 April 2022 Year ended 1 May 2021

Effect on profit

before tax*

£m

Effect on

total equity

£m

Effect on profit

before tax*

£m

Effect on

total equity

£m

10% movement in the US Dollar exchange rate – 8 – 13

10% movement in the Euro exchange rate – 22 – 60

10% movement in the Norwegian Krone exchange rate – 14 – 30

10% movement in the Swedish Krona exchange rate – 9 – 27

10% movement in the Danish Krone exchange rate – 6 – 17

10% movement in the Chinese Yuan Offshore exchange rate – 5 – 6

* Wherever possible the Group offsets foreign exchange fluctuations using matching foreign currency assets or liabilities or unhedged derivatives. The impact of

unmatched exposures is immaterial.

c) Interest rate risk

The Group’s interest rate risk arises primarily on cash, cash equivalents and loans and other borrowings, all of which are at floating

rates of interest and which therefore expose the Group to cash flow interest rate risk. These floating rates are linked to risk-free

rates and other applicable interest rate bases as appropriate to the instrument and currency. Future cash flows arising from these

financial instruments depend on interest rates and periods agreed at the time of rollover. Group policy permits the use of long-term

interest rate derivatives in managing the risks associated with movements in interest rates.

The effect on the income statement and equity of 100 basis point movements in the interest rate for the currencies in which most

Group cash, cash equivalents, loans and other borrowings are denominated and on which the valuation of most derivative financial

instruments is based is as follows, assuming that the year end positions prevail throughout the year:

Increase/(decrease) on profit before tax

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

1% increase in the Pound Sterling interest rate – 2

d) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that

are settled by delivering cash or another financial asset. The Group manages its exposure to liquidity risk by reviewing regularly the

long-term and short-term cash flow projections for the business against the resources available to it. In the year ended 1 May 2021,

the Group cancelled RCFs totalling £1,316m and refinanced with new facilities.

In order to ensure that sufficient funds are available for ongoing and future developments, the Group has committed bank facilities,

excluding overdrafts repayable on demand, totalling £543m (2020/21: £551m). The lower amount of facilities reflect strong cash

flow generation in financial year ended 1 May 2021 and a lower requirement for debt going forward. Further details of committed

borrowing facilities are shown in note 18.

Notes to the Group Financial Statements continued

215

Governance

Financial Statements

Investor Information

Strategic Report

25 Financial risk management and derivative financial instruments continued

d) Liquidity risk continued

The table below analyses the Group’s financial liabilities and derivative assets and liabilities into relevant maturity groupings.

The amounts disclosed in the table are the contractual undiscounted cash flows, including both principal and interest flows,

assuming that interest rates remain constant and that borrowings are paid in full in the year of maturity.

30 April 2022

Within

one year

£m

In more than

one year but

not more than

five years

£m

In more than

five years

£m

Total

£m

Lease liabilities (260) (806) (485) (1,551)

Derivative financial instruments – gross cash outflows:

Forward foreign exchange contracts (1,698) – – (1,698)

Derivative financial instruments – gross cash inflows:

Forward foreign exchange contracts 1,714 – – 1,714

Loans and other borrowings (6) (92) – (98)

Trade and other payables (1,800) (8) – (1,808)

(2,050) (906) (485) (3,441)

1 May 2021 (restated)*

Within

one year

£m

In more than

one year but

not more than

five years

£m

In more than

five years

£m

Total

£m

Lease liabilities (271) (842) (534) (1,647)

Derivative financial instruments – gross cash outflows:

Forward foreign exchange contracts (2,872) – – (2,872)

Derivative financial instruments – gross cash inflows:

Forward foreign exchange contracts 2,854 – – 2,854

Loans and other borrowings (6) – – (6)

Deferred consideration (2) – – (2)

Trade and other payables (1,623) (5) – (1,628)

(1,920) (847) (534) (3,301)

* Trade and other payables has been restated for the comparative period to exclude £171m of accruals that do not meet the definition of financial liabilities.

e) Credit risk

Credit risk is the risk of financial loss to the Group if a counterparty fails to meet its contractual obligations and arises principally

from the Group’s receivables from consumers. The Group’s exposure to credit risk is regularly monitored and the Group’s policy is

updated as appropriate.

The credit risk associated with cash and cash equivalents and derivative financial instruments are closely monitored and credit

ratings are used in determining maximum counterparty credit risk.

Surplus cash is invested in investment grade institutions using only low risk, highly liquid instruments such as overnight deposits and

money market funds. The Group only invests in money market funds where cash can be withdrawn the same day, and which are

comprised of assets with a weighted-average maturity of less than 90 days.

For the purposes of short-term operational requirements in Greece, local banks which are below investment grade are used to

service short-term liquidity needs. Any surplus cash in Greece is moved to an investment grade institution.

Counterparty credit rating

30 April

2022

£m

1 May

2021

£m

AAA to AA- 72 78

A+ to A- 37 81

BBB+ to BBB- 1 6

Cash held for short term operational requirements within Greece 16 10

126 175

216 Currys plc Annual Report & Accounts 2021/22

25 Financial risk management and derivative financial instruments continued

e) Credit risk continued

All derivative assets are considered low risk financial instruments as they are held at banks that are investment grade.

The Group’s contract assets of £180m (2020/21: £220m) are generally owed to the Group by major multinational enterprises with

whom the Group has well-established relationships and are consequently not considered to add significantly to the Group’s credit

risk exposure. In addition, credit risk is also inherently associated with the MNO end subscribers. Exposure to credit risk associated

with the MNO subscriber is managed through an extensive consumer credit checking process prior to connection with the network.

The large volume of MNO subscribers reduces the Group’s exposure to concentration of credit risk. Further information for credit risk

associated to contract assets and the MNOs is disclosed within note 14.

For the Group’s trade receivables in the UK and Nordics, it has adopted the simplified approach to calculating expected

credit losses allowed by IFRS 9. Historical credit loss rates are applied consistently to groups of financial assets with similar risk

characteristics. These are then adjusted for known changes in, or any forward-looking impacts on creditworthiness. In Greece the

Group has adopted both the simplified approach for business to business and a debtor by debtor expected credit loss model

based on the probability of default.

Of the Group’s £558m (2020/21: £450m) trade and other receivables that fall within the classification of financial assets, £211m

(2020/21: £135m) is deemed by the Group to have a material level of credit risk. Other amounts within trade and other receivables

are not considered to have a material level of credit risk because they primarily relate to receivables with blue chip multinational

companies with no history of default and no concentration of credit risk to the Group. The Group applies the expected credit loss

model, as described above, to all financial assets. The areas of risk and corresponding expected credit loss are as follows:

30 April 2022 1 May 2021

Gross carrying

amount

£m

Expected

credit loss

£m

Gross carrying

amount

£m

Expected

credit loss

£m

UK & Ireland – Business to Business 17 6 13 3

UK & Ireland – Main Sales Ledger 62 4 39 4

UK & Ireland – Concessions 2 2 2 2

UK & Ireland – iD Mobile 44 4 – –

Nordics – Business to Business 29 2 24 3

Nordics – Franchise Debtors 29 1 30 1

Greece – Business to Business 4 – 4 –

Greece – Franchise Debtors 1 1 2 1

Greece – Consumer Credit 14 1 15 1

Greece – Main Sales Ledger 9 – 6 1

211 21 135 16

Ageing of the areas of credit risk is set out in the tables below:

Gross amounts of recognised financial assets

30 April

2022

£m

1 May

2021

£m

Not yet due 161 108

0 – 90 days 26 13

91 – 180 days 11 2

180+ days 13 12

211 135

The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the Group’s

maximum exposure to credit risk.

f) Capital risk

The Group manages its capital to ensure that entities within the Group will be able to continue as a going concern, whilst maximising

the return to shareholders through a suitable mix of debt and equity. The capital structure of the Group consists of cash and cash

equivalents, loans and other borrowings, and equity attributable to equity holders of the Company comprising issued capital,

reserves and accumulated profits. Except in relation to minimum capital requirements in its insurance business, the Group is not

subject to any externally imposed capital requirements. The Group monitors its capital structure on an ongoing basis, including

assessing the risks associated with each class of capital.

Notes to the Group Financial Statements continued

217

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Financial Statements

Investor Information

Strategic Report

25 Financial risk management and derivative financial instruments continued

g) Derivatives

Derivative financial instruments comprise forward foreign exchange contracts, foreign exchange swaps and interest rate swaps.

The Group has designated financial instruments under IFRS 9 as explained below.

Cash flow hedges

Foreign exchange

The objective of the Group’s policy on foreign exchange hedging is to protect the Group from adverse currency fluctuations and

to gain greater certainty of earnings by protecting the Group from sudden currency movements. All hedging of foreign currency

exposures is managed centrally within the Group Treasury function. The Group analyses its exposure to foreign exchange rate

movements without assuming any correlations between currency pairs and uses this analysis to hedge up to the level prescribed

in its transactional hedging policy (a target of up to 80% hedged a year in advance). The Group generally prefers to use vanilla

forward foreign exchange contracts as hedging instruments for hedges of forecasted transactions. The Group has a policy that

all its foreign exchange rate derivatives must be eligible for hedge accounting. The Group can use more complex derivatives

including options when management considers that they are more appropriate, based on management’s views on potential

foreign exchange rate movements.

Any amendments to the Group’s policies or strategy on managing foreign currency risk must be approved by the Group’s Tax and

Treasury Committee.

At 30 April 2022 the Group had forward and swap foreign exchange contracts in place with a notional value of £731m (2020/21:

£1,570m) and a net fair value of £7m asset (2020/21: £17m liability) that were designated and effective as cash flow hedges.

These contracts are expected to cover exposures ranging from one month to one year. The fair value of derivative foreign exchange

contracts and foreign exchange swaps not designated as cash flow hedges was a £10m asset (2020/21: £1m liability).

Possible sources of ineffectiveness are scenarios where future cash flows are delayed to a later period or brought forward to a

prior period. Ineffectiveness can also be caused by credit risk (both own risk and that of the counterparty). All hedges are expected

to be highly effective.

Supply chain issues have had an impact on the timing and volume of foreign currency purchases into the business. However, all

hedged items are considered highly probable, therefore no material ineffectiveness has been recognised. The situation in Ukraine

and subsequent sanctions imposed on Russia has had no significant impact on foreign currency purchases.

As of 30 April 2022, the Group holds the following levels of foreign exchange hedging derivatives (foreign exchange forwards)

to hedge its exposure to fluctuating foreign exchange rates over the next 12 months:

Year ended 30 April 2022 Year ended 1 May 2021

Maturing

hedges in

the next

12 months

£m

Weighted

average

hedge rate

£m

Change in fair

value used to

calculate hedge

ineffectiveness

£m

Maturing

hedges in

the next

12 months

£m

Weighted

average

hedge rate

£m

Change in fair

value used to

calculate hedge

ineffectiveness

£m

Hedging USD purchases into GBP (UK) 59 1.3483 4 66 1.3704 (1)

Hedging EUR purchases into GBP (UK) 28 1.1748 – 24 1.1247 –

Hedging CNY purchases into GBP (UK) 52 8.7784 3 61 9.0489 –

Hedging EUR purchases into NOK (Nordics) 305 10.1009 (6) 761 10.4977 (33)

Hedging USD purchases into NOK (Nordics) 30 8.7826 2 84 8.7562 (4)

Hedging SEK sales into NOK (Nordics) 103 1.0237 2 301 0.9787 12

Hedging DKK sales into NOK (Nordics) 73 0.7388 1 189 0.7100 8

Hedging EUR purchases into GBP (Ireland) 81 1.1724 1 84 0.8864 1

731 7 1,570 (17)

The change in value of hedged items is a total of £7m (2020/21: £(17)m). This is used in assessing the economic relationship between

hedged items and hedging instruments. Ineffectiveness caused by foreign currency basis spread and credit risk was highly immaterial

during the period.

218 Currys plc Annual Report & Accounts 2021/22

25 Financial risk management and derivative financial instruments continued

g) Derivatives continued

Cash flow hedges continued

Interest rate

The Group’s interest rate risk management objective is to limit the amount of additional expense incurred if interest rates rise to

unexpected levels. To manage the interest rate exposure, the Group generally enters interest rate swaps to fix its floating rate

borrowings, in which the Group agrees to exchange, at specified intervals, the difference between fixed and variable rate interest

amounts calculated by reference to an agreed-upon notional principal amount. The Group monitors and manages its interest rate risk

individually in each currency and it does not make any assumptions about how interest rates in different currencies may move in tandem.

Any amendments to the Group’s policies or strategy on managing interest rate risk must be approved by the Group’s Tax and

Treasury Committee.

As at the 30 April 2022 there are no interest rate swaps in place. In April 2021, whilst the Group’s policy and strategy on interest

rate risk has not changed, £60m of interest rate hedges were discontinued because they no longer fulfilled the criteria for hedge

accounting under IFRS 9. Following that, all interest rate swap contracts were terminated before 1 May 2021.

IBOR Reform

During the year, the Group adopted the ‘Interest Rate Benchmark Reform Phase 2’ amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and

IFRS 16. During the year the Group has established that it has no material contracts that use an IBOR benchmark which would require

the remeasurement of any assets, liabilities or derivatives.

In April 2021, the Group extinguished its instruments linked to IBOR. This included the refinancing of the Group’s revolving credit

facilities which were replaced with new agreements linked to risk-free rate indices as set out in note 18. The Group simultaneously

cancelled all of its interest rate hedging as they no longer met with the requirements of IFRS 9. The Group continues to operate with

no significant core level of debt and as such has no interest rate hedging arrangements in place.

The Group’s interest rate risk management strategy and policies remain unchanged and if circumstances change, the Group’s interest

rate programme may be recommenced in future.

26 Notes to the cash flow statement

a) Reconciliation of cash and cash equivalents and bank overdrafts at the end of the period

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Cash at bank and on deposit 126 175

Bank overdrafts (2) (6)

Cash and cash equivalents and bank overdrafts at end of the period 124 169

Notes to the Group Financial Statements continued

219

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Financial Statements

Investor Information

Strategic Report

26 Notes to the cash flow statement continued

b) Reconciliation of operating profit to cash generated from operations

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Profit before interest and tax – continuing operations 222 147

Profit before interest and tax – discontinued operations – 7

Depreciation and amortisation 338 362

Share-based payment charge 23 21

Profit on disposal of fixed assets (1) (6)

Impairments and other non-cash items 65 76

Operating cash flows before movements in working capital 647 607

Movements in working capital:

Increase in inventory (130) (1 74)

(Increase)/decrease in receivables (92) 404

Increase in payables 143 182

Decrease in provisions (44) (93)

(123) 319

Cash generated from operations 524 926

c) Changes in liabilities arising from financing activities

The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes.

Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group’s

consolidated cash flow statement as cash flows from financing activities.

2 May

2021

£m

Financing

cash flows

£m

Lease

additions,

modifications

and disposals

£m

Foreign

exchange

£m

Interest

£m

30 April

2022

£m

Loans and other borrowings (note 18)

(i)

– (74) – – (6) (80)

Lease liabilities (note 19)

(ii)

(1,326) 278 (165) 16 (70) (1,267)

Total liabilities from financing activities

(iii)

(1,326) 204 (165) 16 (76) (1,347)

3 May

2020

£m

Financing

cash flows

£m

Lease

additions,

modifications

and disposals

£m

Foreign

exchange

£m

Interest

£m

1 May

2021

£m

Loans and other borrowings (note 18)

(i)

(324) 348 – – (24) –

Lease liabilities (note 19)

(ii)

(1,444) 310 (96) (19) (77) (1,326)

Total liabilities from financing activities

(iii)

(1 ,768) 658 (96) (19) (101) (1,326)

(i) The Group used interest rate swaps and foreign exchange forward contracts to hedge borrowings. The fair value of these derivatives rounded to £nil (2020/21: £nil).

There were no material cash flows or changes in fair value on these instruments during the year.

(ii) Lease liabilities are secured over the Group’s right-of-use assets.

(iii) In addition to the amounts shown above, facility arrangement fees of £6m (2020/21: £nil) are included within cash flows from financing activities in the consolidated

cash flow statement.

The consolidated cash flow statement presents the drawdown and repayment of loans and other borrowings on a net basis as these

loans and other borrowings are used as a key part of the Group’s daily cash management, with daily deposits and repayments, and

the entire balance revolving within a matter of days.

220 Currys plc Annual Report & Accounts 2021/22

27 Related party transactions

Transactions between the Group’s subsidiary undertakings, which are related parties, have been eliminated on consolidation

and accordingly are not disclosed. See note 4a for details of related party transactions with key management personnel.

The Group had the following transactions and balances with its associates:

30 April

2022

£m

1 May

2021

£m

Revenue from sale of goods and services 15 16

Amounts owed to the Group – –

Details of the associates are shown within Other significant shareholdings in note C9 to the Company financial statements.

All transactions entered into with related parties were completed on an arm’s length basis.

28 Capital commitments

30 April

2022

£m

1 May

2021

£m

Intangible assets 7 14

Property, plant & equipment 3 5

Contracted for but not provided for in the accounts 10 19

29 Government support

Accounting policies

Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions

attaching to them and that the grants will be received.

Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises

expenses as related costs which the grants are intended to compensate. Government grants that are receivable as

compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group

with no future related costs are recognised in profit or loss in the period in which they become receivable.

During the year ended 30 April 2022, the Group received further government support designed to mitigate the impact of Covid-19

in several countries in which the Group operates.

In the UK, the Group received further benefit in the form of business rates relief under the ‘Retail Discount’ for the year ended 30 April

2022. Under the scheme the business benefited from 100% relief from business rate bills for the first two months of the period and

66% off the remaining bills up to a total of £2m. This has led to a reduction in operating costs totalling £18m (2020/21: £62m).

The Group also benefited from government backed Covid-19 related rent concessions for closed stores in Greece. The Group

elected to take the practical expedient related to rent concessions under IFRS 16, subsequently recognising a £1m credit (2020/21:

£6m) against rental expense to reflect the variable element of the reduction and a corresponding adjustment to the lease liability.

During the prior period the Group also received government grants to cover the salaries for those employees who had been ‘furloughed’

through the Coronavirus Job Retention Scheme in the UK. A similar subsidy was also received in Ireland through the Temporary Wage

Subsidy Scheme and subsequently the Employment Wage Subsidy Scheme. These were subsequently repaid to the respective

governments on 28 April 2021 while no further benefit has been taken in relation to such schemes in the year ended 30 April 2022.

The Group also received £1m (2020/21: £6m) in relation to similar employment cost subsidy schemes in the Nordics. During the

year ended 1 May 2021 £2m of social security payments for the Group’s Danish operations had been deferred under government-

backed schemes.

There are no unfulfilled conditions or contingencies attached to these grants.

Notes to the Group Financial Statements continued

221

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Financial Statements

Investor Information

Strategic Report

30 Operating lease arrangements

Accounting policies

A lease is classified as a contract, or part of a contract, that conveys the right to use an asset (the underlying asset)

for a period of time in exchange for consideration.

The Group as a lessor

The Group is a lessor predominantly when subleasing retail store properties that are no longer open for trading. Leases for

which the Group is a lessor are classified as finance or operating leases. All leases that are not finance leases are classified

as operating leases. See note 12 for further disclosure where the Group is a lessor and the contracts are classified as finance

leases.

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs

incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised

on a straight-line basis over the lease term.

Under IFRS 16, an intermediate lessor is required to classify the sublease as a finance lease or an operating lease by reference

to the right-of-use asset arising from the head lease. As such, operating leases in which the Group is a lessor relate to right-of-

use assets subleased to external third parties.

Undiscounted amounts receivable under subleases classified as operating leases:

30 April

2022

£m

1 May

2021

£m

Year 1 – 1

Year 2 – –

Year 3 – –

Year 4 – –

Year 5 – –

Onwards – –

31 Contingent liabilities

The Group continues to cooperate with HMRC in relation to open tax enquiries arising from pre-merger legacy corporate transactions

in the former Carphone Warehouse Group. It is possible that a future economic outflow will arise from one of these matters, and

therefore a contingent liability has been disclosed. This determination is based on the strength of third-party legal advice on

the matter and therefore the Group considers it ‘more likely than not’ that these enquiries will not result in an economic outflow.

The potential range of tax exposures relating to this enquiry is estimated to be approximately £nil – £214m excluding interest and

penalties. Interest on the upper end of the range is approximately £61m up to 30 April 2022. Penalties could range from nil to 30%

of the principal amount of any tax. Any potential cash outflow would occur in greater than one year and less than five years.

The Group received a Spanish tax assessment connected to a business that was disposed of by the legacy Carphone Warehouse

Group in 2014. This issue will enter litigation and is likely to take a minimum of three years to reach resolution. The Group considers

that it is not probable the claim will result in an economic outflow based on third-party legal advice. The maximum potential

exposure as a result of the claim is £10m.

32 Events after the balance sheet date

There were no material events after the balance sheet date.

222 Currys plc Annual Report & Accounts 2021/22

Company Balance Sheet

Note

30 April

2022

£m

1 May

2021

£m

Non-current assets

Investments in subsidiaries C4 2,670 2,670

2,670 2,670

Current assets

Cash and cash equivalents 12 55

Debtors C5 3,306 3,583

Derivative assets C7 39 63

3,357 3,701

Current liabilities

Creditors C6 (3,338) (3,578)

Derivative liabilities C7 (30) (65)

Net current (liabilities)/assets (11) 58

Total assets less current liabilities 2,659 2,728

Net assets 2,659 2,728

Capital and reserves

Share capital C8 1 1

Share premium reserve C8 2,263 2,263

Profit and loss account 395 464

2,659 2,728

The Company’s profit for the year was £50m (2020/21: £20m).

The financial statements of the Company were approved by the Board on 6 July 2022 and signed on its behalf by:

Alex Baldock

Group Chief Executive

Bruce Marsh

Group Chief Financial Officer

Company registration number: 7105905

223

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Financial Statements

Investor Information

Strategic Report

Company Statement of Changes in Equity

capital

£m

premium

reserve

£m

Profit and loss

account

£m

Total

equity

£m

At 2 May 2020 1 2,263 456 2,720

Profit for the year – – 20 20

Other comprehensive income – – 1 1

Total comprehensive income for the year – – 21 21

Purchase of own shares – employee benefit trust – – (13) (13)

At 1 May 2021 1 2,263 464 2,728

Total comprehensive income for the year – – 50 50

Purchase of own shares – employee benefit trust – – (41) (41)

Purchase of own shares – share buyback – – (32) (32)

Equity dividend – – (46) (46)

At 30 April 2022 1 2,263 395 2,659

224 Currys plc Annual Report & Accounts 2021/22

Notes to the Company Financial Statements

C1 Accounting policies

Basis of preparation

The Company is incorporated in the United Kingdom. The financial statements have been prepared on a going concern basis

(see note 1 to the Group financial statements).

The separate financial statements of the Company are presented as required by the Companies Act 2006. The Company meets

the definition of a qualifying entity under FRS 100 (Financial Reporting Standard 100) issued by the Financial Reporting Council.

Accordingly, the financial statements have therefore been prepared in accordance with FRS 101 (Financial Reporting Standard 101)

‘Reduced Disclosure Framework’ as issued by the Financial Reporting Council, incorporating the Amendments to FRS 101 as issued by

the Financial Reporting Council.

As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in relation

to share-based payments, financial instruments, capital management, presentation of comparative information in respect of certain

assets, presentation of a cash flow statement, certain related party transactions and standards not yet effective. Where required,

equivalent disclosures are given in the Consolidated financial statements.

The financial statements have been prepared on the historical cost basis except for the remeasurement of certain financial

instruments to fair value. The principal accounting policies adopted are the same as those set out in the notes to the Group financial

statements except as noted below. The directors consider there are no critical accounting judgements or key sources of estimation

uncertainty which affect these financial statements.

Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment.

The Company had no employees during the year ended 30 April 2022 (2020/21: nil). All directors were remunerated by other

Group companies.

On 15 September 2021 the Company changed its name from Dixons Carphone plc to Currys plc.

C2 Profit and loss account

In accordance with the exemption permitted by section 408 of the Companies Act 2006, the profit and loss account of the

Company is not presented separately. The profit recognised for the year ended 30 April 2022 was £50m (2020/21: £20m).

Included in the profit recognised for the year ended 1 May 2021 is £1m of charitable donations. Information regarding the audit fees

for the Group is provided in note 3 to the Group financial statements.

C3 Equity dividends

Details of amounts recognised as distributions to shareholders in the period and those proposed are detailed in note 23 of the

Group financial statements.

C4 Investments in subsidiaries

30 April

2022

£m

1 May

2021

£m

Opening balance 2,670 2,670

Impairments – –

Closing balance 2,670 2,670

Cost 2,776 2,776

Accumulated impairments (106) (106)

Net carrying amount 2,670 2,670

Balances comprise investments in subsidiary undertakings and other minority investments. Details of the Company’s investments in

subsidiary undertakings are provided in note C9.

225

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Investor Information

Strategic Report

C4 Investments in subsidiaries continued

The directors acknowledged that as at 30 April 2022 the market capitalisation of Currys plc was less than the net assets of

the Company, which primarily consists of investments in subsidiaries. This was considered to be an indicator of impairment and

an impairment test over the investment in subsidiaries was performed in accordance with IAS 36. The recoverable amounts of the

investments have been determined based on value in use calculations where management have prepared discounted cash flows

based on the latest three year strategic plan and require the use of estimates.

The recoverable amount, based on the value in use, shows a headroom of £3,225m above the carrying amount of the investments

in subsidiaries. As such, no impairment charge was recognised over investment in subsidiaries as a result of the impairment test

detailed above.

C5 Debtors

30 April

2022

£m

1 May

2021

£m

Amounts owed by Group undertakings 3,305 3,582

Other debtors 1 1

Amounts falling due within one year 3,306 3,583

Amounts owed by Group undertakings are unsecured, repayable on demand and any interest charged is at current market rates.

Receivable balances with other Group entities are reviewed for potential impairment based on the ability of the counterparty to

meet its obligations. The net current asset/liability position of the entity is considered and where the amount due to the Company

is not covered, the estimated future cash flows of the counterparty and subsidiary companies with the ability to distribute cash to

it are considered. An impairment of £49m (2020/21: £nil) was recognised in relation to amounts owed by Group undertakings that

are non-trading entities across the group, have net liabilities and are in the process of being wound down. Other than the amounts

impaired there has been no significant change in credit risk to all of the balances and therefore the 12-month expected credit loss

method has been applied.

C6 Creditors

30 April

2022

£m

1 May

2021

£m

Amounts owed to Group undertakings 3,329 3,576

Overdrafts 9 2

Amounts falling due within one year 3,338 3,578

C7 Derivatives

30 April

2022

£m

1 May

2021

£m

Foreign exchange contracts 39 63

Derivative assets 39 63

Foreign exchange contracts (30) (65)

Derivative liabilities (30) (65)

This value is determined using forward exchange and interest rates derived from market sourced data at the balance sheet date,

with the resulting value discounted back to present value (level 2 classification). See note 25 to the Group financial statements

for further details.

226 Currys plc Annual Report & Accounts 2021/22

C7 Derivatives continued

At 30 April 2022 the Company has external forward and swap foreign exchange contracts in place with a notional value of £1,698m

(2020/21: £2,872m) and a fair value of £28m asset (2020/21: £24m) and £11m liability (2020/21: £42m). These derivatives will mature

in between one month and one year.

Derivatives with a notional value of £731m (2020/21: £1,570m) and a fair value of £17m asset (2020/21: £22m) and £10m liability

(2020/21: £39m) were designated by subsidiaries in cash flow hedge relationships. These derivatives were passed down to the

hedging subsidiary using an internal derivative with exactly the same (but opposite) terms to external derivatives.

Derivatives with a notional value of £203m (2020/21: £245m) and a fair value of £1m asset (2020/21: £1m) and £1m of liability

(2020/21: £nil) were not designated by subsidiaries in cash flow hedge relationships but were passed down to subsidiaries to offset

foreign currency balance sheet exposures. These derivatives were passed down using an internal derivative with exactly the same

(but opposite) terms to external derivatives.

Derivatives with a notional value of £764m (2020/21: £1,057m) and a fair value of £10m asset (2020/21: £1m asset) and £nil liability

(2020/21: £3m) were used by the Company to manage its cash and therefore were not passed down to subsidiaries.

C8 Share capital and share premium

Details of movements in share capital and share premium are disclosed in note 22 to the Group financial statements.

C9 Subsidiary undertakings

a) Principal subsidiaries as at 30 April 2022

The Company has investments in the following principal subsidiary undertakings. All holdings are in equity share capital and give the

Group an effective holding of 100% on consolidation.

Name Registered office address

Country of

incorporation or

registration Share class(es) held % held Business activity

Currys Group Limited

(1)

1 Portal Way, London, W3 6RS United Kingdom Ordinary 100 Retail

Currys Ireland Limited

(2)

3rd Floor Office Suite, Omni Park

Shopping Centre, Santry, Dublin 9

Ireland Ordinary 100 Retail

Currys Retail Limited

(3)

1 Portal Way, London, W3 6RS United Kingdom Ordinary 100 Retail

Dixons South East Europe A.E.V.E. 90 Marinou Antypa str., Neo

Irakleio, Athens 14121

Greece Ordinary 100 Retail

Elgiganten Aktiebolag Box 1264, 164, 29 Kista, Stockholm Sweden Ordinary 100 Retail

ElGiganten A/S Arne Jacobsens Allé 16, 2.sal

København S, 2300 Copenhagen

Denmark Ordinary 100 Retail

Elkjøp Nordic AS Nydalsveien 18A, NO-0484, Oslo Norway Ordinary 100 Retail

Elkjøp Norge AS Solheimveien 10, NO-1473,

Lørenskog

Norway Ordinary 100 Retail

Gigantti Oy Töölönlahdenkatu 2, FI-00100,

Helsinki

Finland Ordinary 100 Retail

The Carphone Warehouse Limited 3rd Floor Office Suite, Omni Park

Shopping Centre, Santry, Dublin 9

Ireland Ordinary 100 Retail

(1) Currys Group Limited was called DSG Retail Limited until 27 September 2021.

(2) Currys Ireland Limited was called DSG Retail Ireland Limited until 7 October 2021.

(3) Currys Retail Limited was called The Carphone Warehouse Limited until 4 October 2021.

Notes to the Company Financial Statements continued

227

Governance

Financial Statements

Investor Information

Strategic Report

C9 Subsidiary undertakings continued

b) Other subsidiary undertakings

The following are the other subsidiary undertakings of the Group, all of which are wholly owned unless otherwise indicated. All these

companies are either holding companies or provide general support to the principal subsidiaries listed on the previous page.

Name Registered office address

Country of

incorporation or

registration Share class(es) held % held

Alfa s.r.l. Via monte Napoleone n. 29, 20121 Milano Italy Ordinary 100

Carphone Warehouse Europe Limited 1 Portal Way, London, W3 6RS United Kingdom A and B Ordinary 100

Carphone Warehouse Ireland Mobile

Limited (in liquidation)

44 Fitzwilliam Place, Dublin 2 Ireland Ordinary 100

CCC Nordic A/S Arne Jacobsens Allé 15, 8., 2300

København S.

Denmark Ordinary 100

Connected World Services

Distributions Limited

1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

Connected World Services LLC 2711 Centerville Road, Suite 400

Wilmington DE 19808

United States Ordinary 100

Connected World Services

Netherlands BV

Watermanweg 96, 3067 GG, Rotterdam Netherlands Ordinary 100

Connected World Services SAS

(in liquidation)

26 rue de Cambacérès, 75008 Paris France Ordinary 100

CPW Acton Five Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

CPW Brands 2 Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100*

CPW CP Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

CPW Technology Services Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

CPW Tulketh Mill Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100*

Currys CoE s.r.o.

(1)

Trnitá, 491/5, 602 00 Brno Czech Republic Business shares 100

Currys Holdings Limited

(2)

1 Portal Way, London, W3 6RS United Kingdom Ordinary 100*

Deferred 100*

A Ordinary 84.6**

B Ordinary 100*

Currys Hong Kong Sourcing Limited

(3)

31/F, AXA Tower Landmark East, 100

How Ming Street, Kwun Tong Kowloon

Hong Kong Ordinary 100

Currys Retail Group Limited

(4)

1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

Deferred 100*

Currys Sourcing Limited

(5)

31/F, AXA Tower Landmark East, 100 How

Ming Street, Kwun Tong Kowloon

Hong Kong Ordinary 100

Dixons Deutschland GmbH i.L

(in liquidation)

Ottostraße 21, 80333 Munich Germany Ordinary 100

Dixons Stores Group Retail Norway AS Nydalsveien 18A, NO-0484 Oslo Norway Ordinary 100

DSG Card Handling Services Limited

(6)

1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

DSG Corporate Services Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

DSG European Investments Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

DSG International Holdings Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

DSG International Retail Properties

Limited

1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

DSG Ireland Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

DSG KHI Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

DSG Overseas Investments Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

DSG Retail Ireland Pension Trust Limited 40 Upper Mount Street, Dublin 2, D02 PR89 Ireland Ordinary 100

228 Currys plc Annual Report & Accounts 2021/22

Name Registered office address

Country of

incorporation or

registration Share class(es) held % held

Elcare Workshop AS Industrivegen, 53, 2212, Kongsvinger Norway Ordinary 100

Elcare Workshop Oy Silvastintie 1, 01510, Vantaa Finland Ordinary 100

Electrocare Nordic AB Arabygatan 9, 35246 Växjö,

Kronobergs Län

Sweden Ordinary 100

El-Giganten Logistik AB Möbelvägen 51, 556 52 Jönköping Sweden Ordinary 100

Elkjøp Holdco AS Nydalsveien 18A, NO-0484 Oslo Norway Ordinary 100

Epoq Logistic DC k.s. Evropská 868, 664 42 Modřice Czech Republic Ordinary 100

iD Mobile Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

Kereru Limited

(7)

1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

Kungsgatan Concept Store AB

(8)

Box 1264, 164, 29 Kista, Stockholm Sweden Ordinary 100

Mastercare Service and Distribution

Limited

1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

Mohua Limited

(9)

1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

MTIS Limited Carphone Warehouse, Dixons Unit,

301 Omni Park Shopping Centre,

Swords Road, Dublin 9

Ireland Ordinary 100

New CPWM Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

Petrus Insurance Company Limited 2 Irish Town Gibraltar Ordinary 100

Simplify Digital Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

TalkM Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

Team Knowhow Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

The Carphone Warehouse

(Digital) Limited

1 Portal Way, London, W3 6RS United Kingdom Ordinary 100*

The Phone House Holdings (UK) Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100

* Interest held directly by Currys plc.

** This is the only interest of Currys plc, directly or indirectly, in this class of shares.

(1) Currys CoE s.r.o. was called Dixons Carphone CoE s.r.o. until 5 October 2021.

(2) Currys Holdings was called Dixons Carphone Holdings Limited until 4 October 2021.

(3) Currys Hong Kong Sourcing Limited was called DSG Hong Kong Sourcing Limited until 5 October 2021.

(4) Currys Retail Group Limited was called Dixons Retail Group Limited until 4 October 2021.

(5) Currys Sourcing Limited was called Dixons Sourcing Limited until 5 October 2021.

(6) DSG Card Handling Services Limited was dissolved on 14 June 2022.

(7) Kereru Limited was called Currys Limited between 13 May 2021 and 15 September 2021 and was subsequently dissolved on 14 June 2022.

(8) Kungsgatan Concept Store AB was disposed of on 10 May 2022.

(9) Mohua Limited was called Currys Retail Limited between 13 May 2021 and 4 October 2021 and was subsequently dissolved on 14 June 2022.

c) Other significant shareholdings

The following are the other significant shareholdings of the Company, all of which are held indirectly.

Name Registered office address

Country of

incorporation or

registration Share class(es) held % held Business activity

Elkjøp Fjordane AS Fugleskjærgata 10, 6905 Florø Norway Ordinary 30 Retail

Notes to the Company Financial Statements continued

C9 Subsidiary undertakings continued

b) Other subsidiary undertakings continued

229

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Strategic Report

C9 Subsidiary undertakings continued

d) Subsidiary undertakings exempt from audit

The following subsidiaries, all of which are incorporated in England and Wales are exempt from the requirements of the Companies

Act 2006 relating to the audit of individual accounts by virtue of section 479A of that Act:

Name Company registration number

Carphone Warehouse Europe Limited 06534088

Connected World Services Distributions Limited 01847868

CPW Acton Five Limited 05738735

CPW Technology Services Limited 02881162

Currys Holdings Limited

(1)

07866062

Currys Retail Group Limited

(2)

03847921

DSG European Investments Limited 03891149

DSG International Holdings Limited 03887870

DSG International Retail Properties Limited 00476440

DSG Ireland Limited 00240621

DSG KHI Limited 09012752

DSG Overseas Investments Limited 02734677

Simplify Digital Limited 06095563

TalkM Limited 04682207

Team Knowhow Limited 10501628

The Carphone Warehouse (Digital) Limited 03966947

The Phone House Holdings (UK) Limited 03663563

(1) Currys Holdings Limited was called Dixons Carphone Holdings until 4 October 2021.

(2) Currys Retail Group Limited was called Dixons Retail Group Limited until 4 October 2021.

230 Currys plc Annual Report & Accounts 2021/22

Five Year Record (Unaudited)

2021/22

£m

2020/21

£m

2019/20

£m

2018/19

£m

2017/18

£m

Adjusted results

Revenue 10,122 10,330 10,217 1 0,474 10,555

EBIT 274 262 214 363 430

Interest (88) (106) (98) (24) (18)

Profit before tax 186 156 116 339 412

Tax (51) (33) (38) (70) (85)

Profit after tax 135 123 78 269 327

Earnings per share

– Basic 11.9p 10.7p 6.7p 23.2p 28.3p

– Diluted 11.5p 10.3p 6.6p 23.0p 28.2p

231

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Strategic Report

Glossary and Definitions

Alternative performance measures (‘APMs’)

In the reporting of financial information, the Group uses certain measures that are not required under IFRS. These are presented in

accordance with the Guidelines on APMs issued by the European Securities and Markets Authority (‘ESMA’). These measures are

consistent with those used internally by the Group’s Chief Operating Decision Maker (‘CODM’) in order to evaluate trends, monitor

performance and forecast results.

These APMs may not be directly comparable with other similarly titled measures of ‘adjusted’ or ‘underlying’ revenue or profit measures

used by other companies, including those within our industry, and are not intended to be a substitute for, or superior to, IFRS measures.

We consider these additional measures to provide additional information on the performance of the business and trends to

shareholders. The below, and supplementary notes to the APMs, provides further information on the definitions, purpose and

reconciliations to IFRS measures of those APMs that are used internally in order to provide parity and transparency between the

users of this financial information and the CODM in assessing the core results of the business in conjunction with IFRS measures.

Adjusted results

Included within our APMs the Group reports a number of adjusted revenues, profit, and other earnings measures, all of which are

described throughout this section. The Group subsequently refers to adjusted results as those which reflect the in-period trading

performance of the ongoing omnichannel retail operations (referred to below as underlying operations and trade) and excludes from

IFRS measures certain items that are significant in size or volatility or by nature are non-trading or highly infrequent. Those items that

the Group consider to be adjusting, as well as the threshold used to determine the departure from IFRS measures is defined below.

Adjusting items

When determining whether an item is to be classified as adjusting, and the departure from IFRS measures is deemed more appropriate

than the additional disclosure requirements for material items under IAS 1, it must meet at least one of the following criteria:

• it is non-operating in nature;

• it is one-off in nature, such as material non-cash impairments;

• significant strategic implementation programmes that may span multiple reporting periods, where the classification as adjusting

removes volatility and aids comparability between periods; or

• causes significant change to the underlying business operations as a result of acquisition, divestiture or closure of operations.

Management will classify items as adjusting where an item meets one of the above criteria and it is considered more appropriate

to depart from IFRS measures.

Items excluded from adjusted results can evolve from one financial year to the next depending on the nature of exceptional items

or one-off type activities. Where appropriate, for example where a business is classified as exited/to be exited, comparative

information is restated accordingly.

Below highlights the grouping in which management allocate adjusting items and provides further detail on how management

consider such items to meet the criteria set out above. Further information on the adjusting items recognised in the current and

comparative period can be found in note A5.

Out of period network debtor revaluations

Adjusting items includes the impact of out of period network debtor revaluations due to changes in the initial underlying assumptions,

primarily driven by the introduction of new regulations or other external factors that drive significant changes in consumer behaviours,

where the original transaction was recorded in periods prior to the current financial reporting year. They do not include the incremental

amounts that form part of the constraint as these elements are not recognised initially when the performance obligation is satisfied.

Although they can recur each period management consider these out of period network revaluations to be non-operating in nature,

and thereby distorting the underlying trading performance within the period. Further information can be found in note 14 of the Group

financial statements.

The inclusion of such items is considered to be additional useful information for users to aid the understanding of current year trading.

Acquisition and disposal related items

Includes costs incurred in relation to the acquisition, and income for the disposal of business operations, as the related costs and

income reflect significant changes to the Group’s underlying business operations and trading performance. Adjusted results do not

exclude the related revenues that have been earned in relation to previous acquisitions but continue to exclude the amortisation of

intangibles, such as brands, that would not have been recognised prior to their acquisition. Where practically possible amounts are

restated in comparative periods to reflect where a business operation has subsequently been disposed.

232 Currys plc Annual Report & Accounts 2021/22

Alternative performance measures (‘APMs’) continued

Adjusting items continued

Strategic change programmes

Primarily relate to costs incurred for the execution and delivery of a change in strategic direction, such as; severance and other

direct employee costs incurred following the announcement of detailed formal restructuring plans as they are considered one-off;

property rationalisation programmes where a business decision is made to rebase the store estate as this is considered both one-off

in nature and to cause a significant change to the underlying business operations; and implementation costs for strategic change

delivery projects that are considered one-off in nature. Such costs incurred do not reflect the Group’s underlying trading performance.

Results are therefore adjusted to exclude such items in order to aid comparability between periods.

Regulatory costs

While ongoing compliance costs are considered to be operating in nature, and included within adjusted results, in certain instances

costs are to be incurred following significant one-off events that lead to the Group incurring material one-off charges. As such,

these are considered to be included within adjusting items.

Impairment losses and onerous contracts

In order to aid comparability, costs incurred for material non-cash impairments and onerous contracts are included within adjusting

items where they are considered so material that they distort the underlying performance of the Group. While the recognition of

such is considered to be one-off in nature, the unavoidable costs for those contracts considered onerous is continuously reviewed

and therefore based on readily available information at the reporting date as well as managements historical experience of similar

transactions. As a result, future cash outflows and total charges to the income statement may fluctuate in future periods.

Other items

Other items include those items that are non-operating and one-off in nature that are material enough to distort the underlying

results of the business but do not fall into the categories disclosed above. Such items include the settlement of legal cases and

other contractual disputes where the corresponding income, or costs, would be considered to distort users understanding of trading

performance during the period.

Net interest income/(costs)

Included within adjusting interest income/(costs) are the finance income/(costs) of businesses to be exited, previously disposed

operations, net pension interest costs on the defined benefit pension scheme within the UK and other exceptional items considered

so one-off or material that they distort underlying finance costs of the Group. As disclosed above, the disposal of businesses

represents a significant change to the underlying business operations, as such, the related interest income/(costs) are removed

from adjusted results to assist users’ understanding of the trading business.

The net interest charge on defined benefit pension schemes represents the non-cash remeasurement calculated by applying the

corporate bond yield rates applicable on the last day of the previous financial year to the net defined benefit obligation. As a

non-cash remeasurement cost which is unrepresentative of the actual investment gains or losses made or the liabilities paid and

payable, and given the defined benefit section of the scheme having closed to future accrual on 30 April 2010, the accounting

effect of this is excluded from adjusted results.

Tax

Included within taxation is the tax impact on those items defined above as adjusting. The exclusion from adjusted results ensures

that users, and management, can assess the overall performance of the Groups underlying operations.

Where the Group is cooperating with tax authorities in relation to tax treatments arising from changes in underlying business

operations as a result of acquisition, divestiture or closure of operations, the respective costs will also be included within adjusting

items. Management considers it appropriate to divert from IFRS measures in such circumstance as the one-off charges related to

prior periods could distort users understanding of the Group’s ongoing operational performance.

The Group also includes the movement of deferred tax recognised in relation to the carry forward of unused tax losses within

adjusting items. Management considers that the exclusion from adjusted results aids users in the determination of current period

performance as the recognition and derecognition of deferred tax is impacted by management’s forecast of future performance

and the ability to utilise unused tax losses.

Glossary and Definitions continued

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Alternative performance measures (‘APMs’) continued

Definitions, purpose and reconciliations

In line with the Guidelines on Alternative Performance Measures issued by ESMA we have provided additional information on the

APMs used by the Group below, including full reconciliations back to the closest equivalent statutory measure.

EBIT/EBITDA

In the key highlights and Performance review we reference financial metrics such as EBIT and EBITDA. We would like to draw to the

user’s attention that these are shown to aid comparison of our adjusted measures to the closest IFRS measure. We acknowledge that

the terminology of EBIT and EBITDA are not IFRS defined labels but are compiled directly from the IFRS measures of profit without

making any adjustments for adjusting items explained above. These measures are: profit for the year before deducting interest

and tax, termed as EBIT; and profit for the year before deducting interest, tax, depreciation and amortisation, termed as for EBITDA.

These metrics are further explained and reconciled within notes A2 and A3 below.

Currency neutral

Some comparative performance measures are translated at constant exchange rates, called ‘currency neutral’ measures.

This restates the prior period results at a common exchange rate to the current year in order to provide appropriate year-on-year

movement measures without the impact of foreign exchange movements.

Like-for-like (‘LFL’) % change

LFL revenue is calculated based on adjusted store and online revenue (including order & collect, online in-store and ShopLive

UK) using constant exchange rates consistent with the currency neutral percentage change measure detailed above. New stores

are included where they have been open for a full financial year both at the beginning and end of the financial period. Revenue

from franchise stores are excluded and closed stores (where closed by the Group’s decision and not where closed due to

government restrictions related to the Covid-19 pandemic) are excluded for any period of closure during either period. Customer

support agreement, insurance and wholesale revenues along with revenue from other non-retail businesses are excluded from LFL

calculations. We consider that LFL revenue represents a useful measure of the trading performance of our underlying and ongoing

store and online portfolio.

Year-on-two-year (‘Yo2Y’)

Within the key highlights and Performance review we present Yo2Y results for certain metrics in order to aid users in making meaningful

comparisons of the Group’s performance following the influence that government enforced store closures had on the Group in the

year ended 1 May 2021.

A1 Reconciliation from revenue to adjusted revenue

Adjusted revenues are adjusted to remove out of period mobile network debtor revaluations and the revenues of those operations

in which the Group classifies as exited or to be exited but do not meet the definition of discontinued in accordance with IFRS 5:

‘Non-Current Assets Held for Sale and Discontinued Operations’.

The exclusion of such revenues helps management and users with the comparability of results, based on the underlying trading

performance of continuing operations within the relevant reporting period.

The below reconciles revenue, which is considered to be the closes equivalent IFRS measure, to adjusted revenue.

Year ended 30 April 2022

UK & Ireland

£m

Nordics

£m

Greece

£m

Eliminations

£m

Total

£m

Statutory external revenue 5,485 4,105 554 – 10,144

Out of period mobile network debtor revaluations (22) – – – (22)

Adjusted external revenue 5,463 4,105 554 – 10,122

Inter-segmental revenue 67 – – (67) –

Total adjusted revenue 5,530 4,105 554 (67) 10,122

234 Currys plc Annual Report & Accounts 2021/22

A1 Reconciliation from revenue to adjusted revenue continued

Year ended 1 May 2021

UK & Ireland

£m

Nordics

£m

Greece

£m

Eliminations

£m

Total

£m

Statutory external revenue 5,642 4,186 516 – 10,344

Out of period mobile network debtor revaluations (14) – – – (14)

Adjusted external revenue 5,628 4,186 516 – 10,330

Inter-segmental revenue* 56 – – (56) –

Total adjusted revenue 5,684 4,186 516 (56) 10,330

* As discussed in note 2 to the Group financial statements, during the period the Group’s reportable segments have been changed to reflect the updated segments

reported to the Board. As a result, inter-segmental revenue has been restated from £194m to £56m for the year ended 1 May 2021. This is to remove inter-segmental

revenue transactions between the previously disclosed UK & Ireland Electricals and UK & Ireland Mobile CGUs.

A2 Reconciliation from statutory profit before interest and tax to adjusted EBIT and adjusted PBT

Adjusted EBIT and adjusted PBT are measures of profitability that are adjusted from total IFRS measures to remove adjusting items,

the nature of which are disclosed above. A description of costs included within adjusting items during the period and comparative

periods is further disclosed in note A5.

As discussed above, the Group uses adjusted profit measures in order to provide a useful measure of the ongoing performance

of the Group.

The below reconciles profit before tax and profit before interest and tax, which are considered to be the closest equivalent

IFRS measures, to adjusted EBIT and adjusted PBT.

Year ended 30 April 2022

Total

profit

£m

Mobile

network

debtor

revaluations

£m

Acquisition

/ disposal

items

£m

Strategic

change

programmes

£m

Regulatory

costs

£m

Impairment

losses and

onerous

contracts

£m

Other

£m

Pension

scheme

interest

£m

Adjusted

profit

£m

UK & Ireland 71 (22) 13 6 (1) 62 (18) – 111

Nordics 130 – 12 – – – – – 142

Greece 21 – – – – – – – 21

EBIT 222 (22) 25 6 (1) 62 (18) – 274

Finance income 2 – – – – – – – 2

Finance costs (98) – – – – – – 8 (90)

Profit before tax 126 (22) 25 6 (1) 62 (18) 8 186

Year ended 1 May 2021

Total

profit/

(loss)

£m

Mobile

network

debtor

revaluations

£m

Acquisition

/ disposal

items

£m

Strategic

change

programmes

£m

Regulatory

costs

£m

Impairment

losses and

onerous

contracts

£m

Other

£m

Pension

scheme

interest

£m

Adjusted

profit

£m

UK & Ireland (11) (14) 14 41 (7) 100 (31) – 92

Nordics 139 – 12 – – – – – 151

Greece 19 – – – – – – – 19

EBIT 147 (14) 26 41 (7) 100 (31) – 262

Finance income 6 – – – – – – – 6

Finance costs (120) – – – – – – 8 (112)

Profit before tax 33 (14) 26 41 (7) 100 (31) 8 156

Glossary and Definitions continued

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Strategic Report

A3 Reconciliation from statutory profit before interest and tax to EBITDA

EBITDA represents earnings before interest, tax, depreciation and amortisation. It provides a useful measure of profitability for users

by adjusting for the volatility of depreciation and amortisation expense which, due to variable useful lives and timing of capital

investment, could distort the underlying profit generated from the Group in relative periods.

The below reconciles profit before interest and tax, which are considered to be the closest equivalent IFRS measures, to EBITDA.

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Profit before interest and tax 222 147

Depreciation 252 279

Amortisation 86 83

EBITDA 560 509

A4 Reconciliation from adjusted EBIT to adjusted EBITDA and adjusted EBITDAR

Adjusted EBITDA represents earnings before interest, tax, depreciation and amortisation. This measure also excludes adjusting items,

the nature of which are disclosed above and with further detail in note A5. It provides a useful measure of profitability for users by

adjusting for the items noted in A2 above as well as the volatility of depreciation and amortisation expense which, due to variable

useful lives and timing of capital investment, could distort the underlying profit generated from the Group in relative periods.

The depreciation adjusted within adjusted EBITDA includes right-of-use asset depreciation on leased assets under IFRS 16. As some

lease expenses fall outside the scope of IFRS 16 due to being short-term, low value or variable, a similar measure of adjusted

EBITDAR is provided. Adjusted EBITDAR provides a measure of profitability based on the above adjusted EBITDA definition as well

as deducting rental expenses outside the scope of IFRS 16. The purpose of this measure is aligned to the adjusted EBITDA purpose

above, with the addition of excluding the full cost base of leases which can vary from year to year of being in scope or out of scope

of IFRS 16, for example due to when leases are short term whilst negotiations are in place regarding lease renewals.

The below reconciles adjusted EBIT to adjusted EBITDA and adjusted EBITDAR. The closest equivalent IFRS measures are considered

to be profit before interest and tax, the reconciliation of such from adjusted EBIT can be found in note A2.

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Adjusted EBIT 274 262

Depreciation 252 279

Amortisation 62 57

Adjusted EBITDA 588 598

Leasing costs in EBITDA 14 13

Adjusted EBITDAR 602 611

236 Currys plc Annual Report & Accounts 2021/22

A5 Further information on the adjusting items between IFRS measures to adjusted profit measures

noted above

Note

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Included in revenue

Mobile network debtor revaluation (i) (22) (14)

(22) (14)

Included in profit before interest and tax

Mobile network debtor revaluation (i) (22) (14)

Acquisition/disposal related items (ii) 25 26

Strategic change programmes (iii) 6 41

Regulatory costs (iv) (1) (7)

Impairment losses and onerous contracts (v) 62 100

Other (vi) (18) (31)

52 115

Included in net finance costs

Net non-cash finance costs on defined benefit pension schemes (vii) 8 8

Total impact on profit before tax – continuing operations 60 123

Tax regulatory matters (viii) 1 1

Tax on other adjusting items (ix) 3 (1)

Total impact on profit after tax – continuing operations 64 123

Discontinued operations 24 – (12)

Total impact on profit after tax 64 111

(i) Mobile network debtor revaluations

In the current period changes in consumer behaviour on previously recognised transactions have led to positive revaluations of

network receivables of £22m (2020/21: £14m).

Further information can be found in footnote (iv) of the network commission receivables and contract assets reconciliation table

within note 14 to the Group financial statements.

(ii) Acquisition/disposal related items

A charge of £25m (2020/21: £26m) relates primarily to amortisation of acquisition intangibles arising on the Dixons Retail Merger.

(iii) Strategic change programmes

During the period, further costs of £28m have been incurred as the Group continues to deliver the long-term strategic plan set back

in 2018; becoming clearer simpler and faster, improving the overall customer experience with an omnichannel offering and building

customers for life. The Group have included such items within adjusting items as, at the balance sheet date, the projects remain

ongoing, with further significant costs and corresponding cash outflows to be recognised. There is expected to be no significant

timing difference between the recognition of charges to the income statement and cash outflows. The costs incurred relate to

the following strategic change programmes:

• £10m one off implementation costs of the Currys rebrand which was announced and completed within the current period;

• £12m (2020/21: £41m) of restructuring costs for central operations and UK & Ireland retail operations; and

• £6m in relation to costs of implementing the cloud-based omnichannel strategy. The significant one-off costs of the front end

omnichannel implementation were initiated and substantially completed in the period.

For the year ended 1 May 2021, £13m of restructuring costs were incurred relating to Carphone Warehouse UK standalone store

closures and the strategic decision to close the Carphone Warehouse Ireland business.

Glossary and Definitions continued

237

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Financial Statements

Investor Information

Strategic Report

A5 Further information on the adjusting items between IFRS measures to adjusted profit measures

noted above continued

(iii) Strategic change programmes continued

Property rationalisation

Included within strategic change programmes is a credit of £22m (2020/21: £19m) that primarily relates to the release of lease

liabilities and excess property provisions following successful early exit negotiations on stores included within previously announced

rationalisation and closure programmes.

For the year ended 1 May 2021 the Group has also incurred £9m of property costs following the announcement to close the

Carphone Warehouse Ireland business, £3m of which relates to non-cash impairments over right-of-use assets and £6m for

dilapidation and closure related costs.

(iv) Regulatory costs

In periods prior, the Group provided for redress related to the mis-selling of Geek Squad mobile phone insurance policies

following the FCA investigation for periods preceding June 2015. All customer claims are carefully considered by the Group on

a case by case basis with the majority of claims received being invalid. As a result, the Group reduced the provision in relation to

redress by a further £1m during the year ended 30 April 2022 (2020/21: £8m) as, although the outstanding claims remain uncertain,

no new claims were received.

For the year ended 1 May 2021, costs of £1m were also recognised in relation to past service costs for the Group’s defined benefit

pension scheme following an additional judgement on GMP equalisation. This is further disclosed in note 21 to the Group financial

statements, with the cumulative adjustment recognised within adjusting items in relation to the judgement totalling £16m to date.

(v) Impairment losses and onerous contracts

Management continues to closely monitor the trading performance of the omnichannel business as we emerge from the pandemic

and acknowledged a change in consumer shopping habits between our store-mix during the year ended 30 April 2022. This led to

the identification and recognition of a non-cash impairment charge of £16m (2020/21: £14m) over store assets within the UK. Also in

the current period a non-cash impairment reversal (credit) of £16m was recognised on store assets which had been impaired in a prior

period but where indicators of impairment no longer exist.

In March 2022 as part of its hybrid-working policy the Group announced it would close its Acton Campus and relocate to

facilities operated by WeWork. As a result of this announcement, an impairment of £31m was recognised; £25m over right-of-use

assets and £6m on other fixed assets. The lease contains a lessor-only break option which, if exercised, could result in a material

lease remeasurement and reversal of impairment in a future period. In addition, during the period the Group negotiated an early

termination settlement on a non-trading lease premises which resulted in an impairment to right-of-use assets of £2m.

Further, during the year ended 30 April 2022 management took the decision to stop selling its credit-based mobile offer which

resulted in a £24m impairment of fixed assets and recognition of a £4m provision for onerous contracts relating to the unavoidable

costs the Group is obligated to pay for services which are not applicable to the ongoing post-pay mobile offer.

The Group continues the operational roll out of its long term strategic plan in moving towards a full omnichannel offering, bringing

stores and online together, giving customers the best of both worlds at scale. This change, accelerated by the pandemic, has resulted

in the identification of a material non-cash impairment charge over intangible assets of £8m (2020/21: £46m), primarily related to

software development costs as the Group moves towards best-in-class cloud-based solutions to achieve operational efficiencies

and improve the customer journey. In the year ended 1 May 2021, these strategic changes also resulted in the recognition of a

one-off £16m contract termination fee.

A credit of £7m has also been recognised within the UK & Ireland operating segment following a release of previously recognised

onerous contracts related to the closure of the Dixons Travel business following successful exit negotiations and lower than

expected closure costs.

During the year ended 1 May 2021, the Group recognised an £8m impairment over acquisition intangibles and £16m for onerous

contracts and store related asset impairments following the announcement to close the Dixons Travel business.

238 Currys plc Annual Report & Accounts 2021/22

A5 Further information on the adjusting items between IFRS measures to adjusted profit measures

noted above continued

(vi) Other

Credits of £18m primarily relate to compensation received following the settlement of a legal case in relation to anti-competitive

behaviour engaged by the counterparty.

For the year ended 1 May 2021 the Group recognised a credit of £28m following the settlement of a contractual dispute with the

counterparty that caused damage to the Group. A further £5m was also recognised following the settlement of a separate legal

case, similar to that of the settlement in the current year but with a different counterparty, in relation to anti-competitive practices

engaged. This was marginally offset by £2m of fees incurred.

(vii) Net non-cash financing costs on defined benefit pension schemes

The net interest charge on defined benefit pension schemes represents the non-cash remeasurement calculated by applying the

corporate bond yield rates applicable on the last day of the previous financial year to the net defined benefit obligation.

(viii) Tax regulatory matters

As previously disclosed, the Group has been cooperating with HMRC in relation to the tax treatment arising due to pre-merger legacy

corporate transactions. The Group maintains the tax treatment was appropriate, however, the likelihood of litigation, and therefore

risk associated with this matter is such that the Group holds a provision for the probable economic outflow. There have been no

significant developments in the year and as such the principal has been retained while further interest of £1m has accumulated

throughout the year.

(ix) Tax on other adjusting items

The effective tax rate on adjusting items is (7)%. The rate is lower than the UK statutory rate of 19% predominantly due to movements in

unrecognised deferred tax assets in the UK where it is not considered there are sufficient future taxable profits to recognise all of the

deferred tax asset in respect of losses, pensions and other timing differences.

A6 Reconciliation from statutory net finance costs to adjusted net finance costs

Adjusted net finance costs exclude certain adjusting finance cost items from total finance costs. The adjusting items include the

finance charges of businesses to be exited, net pension interest costs, finance income from previously disposed operations not

classified as discontinued, and other exceptional items considered so one-off or material that they distort underlying finance

costs of the Group. Further information on these items being removed from our adjusted earnings measures is included within the

definitions above.

The below provides a reconciliation from net finance costs, which is considered to be the closest IFRS measure, to adjusted net

finance costs.

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Total net finance costs (96) (114)

Net interest on defined benefit pension obligations 8 8

Adjusted total net finance costs (88) (106)

Glossary and Definitions continued

239

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Financial Statements

Investor Information

Strategic Report

A7 Adjusted tax expense

a) Tax expense

The corporation tax charge comprises:

Year ended 30 April 2022 Year ended 1 May 2021

Adjusted

£m

Adjusting

items

£m

Statutory

£m

Adjusted

£m

Adjusting

items

£m

Statutory

£m

Current tax

UK corporation tax at 19% (2020/21: 19%) 21 (7) 14 5 2 7

Overseas tax 21 – 21 36 – 36

42 (7) 35 41 2 43

Adjustments made in respect of prior years:

UK corporation tax 1 – 1 (12) – (12)

Overseas tax 1 – 1 (1) – (1)

2 – 2 (13) – (13)

Total current tax 44 (7) 37 28 2 30

Deferred tax

UK corporation tax (4) 14 10 4 1 5

Overseas tax 8 (3) 5 (3) (3) (6)

4 11 15 1 (2) (1)

Adjustments made in respect of prior years:

UK corporation tax 5 – 5 5 – 5

Overseas tax (2) – (2) (1) – (1)

3 – 3 4 – 4

Total deferred tax 7 11 18 5 (2) 3

Total tax charge 51 4 55 33 – 33

Tax related to discontinued operations is included in the figures set out in note 24 to the Group’s financial statements.

b) Reconciliation of standard to actual (effective) tax rate

The principal differences between the total tax charge shown above and the amount calculated by applying the standard rate

of UK corporation tax to profit/(loss) before taxation are as follows:

Year ended 30 April 2022 Year ended 1 May 2021

Adjusted

£m

Adjusting

items

£m

Statutory

£m

Adjusted

£m

Adjusting

items

£m

Statutory

£m

Profit/(loss) before taxation 186 (60) 126 156 (123) 33

Tax at UK statutory rate of 19% (2020/21: 19%) 35 (11) 24 30 (24) 6

Items attracting no tax relief or liability

(i)

2 (6) (4) 4 8 12

Movement in unprovided deferred tax

(iv)

4 24 28 1 15 16

Effect of change in statutory tax rate 3 (4) (1) 1 – 1

Differences in effective overseas tax rates 2 – 2 6 – 6

Increase in provisions 1 – 1 1 – 1

Adjustments in respect of prior years – provision

(ii)

– 1 1 (14) 1 (13)

Adjustments in respect of prior years – other

(iii)

4 – 4 4 – 4

Total tax charge 51 4 55 33 – 33

The effective tax rate on adjusted earnings for the year ended 30 April 2022 is 27% (2020/21: 21%). The effective tax rate on

adjusting items is (7)% (2020/21: nil). The future effective tax rate is likely to be impacted by the geographical mix of profits and the

Group’s ability to take advantage of currently unrecognised deferred tax assets.

(i) Items attracting no tax relief or liability relate mainly to non-deductible depreciation, share-based payments, and reversals of previously non-deductible store closure

provisions.

(ii) Provision releases are predominantly where the window for recovery has now closed in relation to pre-merger uncertain tax positions.

(iii) Other adjustments in respect of prior years are mainly due to lower tax relief on fixed assets through capital allowances in submitted tax returns than originally estimated.

(iv) Deferred tax assets relating principally to tax losses in the UK business have not been recognised due to uncertainty over the Group’s ability to utilise the losses in the future.

240 Currys plc Annual Report & Accounts 2021/22

A8 Adjusted earnings per share

Earnings per share (‘EPS’) measures are adjusted in order to show an adjusted EPS figure, which reflects the adjusted earnings per

share of the Group. Weconsider the adjusted EPS to provide a useful measure of the ongoing earnings of the underlying Group.

The below table shows a reconciliation of statutory basic and diluted EPS to adjusted basic and diluted EPS on both a continuing

and total basis as this is considered to be the closest IFRS equivalent.

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Adjusted profit

Continuing operations 135 123

Total profit

Continuing operations 71 –

Discontinued operations – 12

Total profit 71 12

Million Million

Weighted average number of shares

Average shares in issue 1,165 1,166

Less average holding by Group EBT and Treasury shares held by Company (35) (14)

For basic earnings per share 1,130 1,152

Dilutive effect of share options and other incentive schemes 45 42

For diluted earnings per share 1,175 1,194

Pence Pence

Basic earnings per share

Total (continuing and discontinued operations) 6.3 1.0

Adjustment in respect of discontinued operations – (1.0)

Continuing operations 6.3 –

Adjustments – continuing operations (net of taxation) 5.6 10.7

Adjusted basic earnings per share 11.9 10.7

Diluted earnings per share

Total (continuing and discontinued operations) 6.0 1.0

Adjustment in respect of discontinued operations - (1.0)

Continuing operations 6.0 –

Adjustments – continuing operations (net of taxation) 5.5 10.3

Adjusted diluted earnings per share 11.5 10.3

Basic and diluted EPS are based on the profit for the period attributable to equity shareholders. Adjusted EPS is presented in order

to show the underlying performance of the Group. Adjustments used to determine adjusted earnings are described further in note A5.

A9 Reconciliations of cash generated from operations to free cash flow

Operating cash flow comprises cash generated from/(utilised by) operations, but before cash generated from/(utilised by)

discontinued operations, adjusting items (the nature of which are disclosed above), and after repayments of lease liabilities

(excluding non-trading stores) and movements in working capital presented within the Performance review. The measure aims to

provide users a clear understanding of cash generated from the continuing operations of the Group.

Sustainable free cash flow comprises cash generated from/(utilised by) operations, but before cash generated from/(utilised by)

discontinued operations and movements in working capital, and after capital expenditure, capital repayments of lease liabilities,

net cash interest paid, and income tax paid. Free cash flow comprises all items contained within sustainable free cash flow but after

movements in working capital. Sustainable free cash flow and free cash flow are considered to be useful for users as they represent

available cash resources after operational cash outflows and capital investment to generate future economic inflows. We consider

it useful to present both measures to draw users’ attention to the impact of movements in working capital on free cash flow.

Glossary and Definitions continued

241

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Investor Information

Strategic Report

A9 Reconciliations of cash generated from operations to free cash flow continued

The below provides a reconciliation of cash generated from operations, which is considered the closest equivalent IFRS measure, to

operating cash flow, sustainable free cash flow and free cash flow.

Reconciliation of cash inflow from operations to free cash flow

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Cash generated from operations 524 926

Operating cash flows from discontinued operations* – 3

Capital repayment of leases cost and interest (278) (310)

Less adjusting items to cash flow 33 173

Less movements in working capital presented within the Performance review (note A11) 88 (4 5 4)

Facility arrangement fees (6) –

Operating cash flow 361 338

Capital expenditure (133) (122)

Add back adjusting items to cash flow (33) (172)

Taxation (18) (35)

Cash interest paid (17) (24)

Sustainable free cash flow 160 (16)

Add back movements in working capital presented within the Performance review (note A11) (88) 454

Free cash flow 72 438

* Operating cash flows from discontinued operations are removed in the above reconciliation as free cash flow is presented on a continuing basis.

Reconciliation of adjusted EBIT to free cash flow and sustainable free cash flow

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Adjusted EBIT (note A2) 274 262

Depreciation and amortisation (note A4) 314 336

Working capital presented within the Performance review (note A11) (88) 454

Share-based payments* 23 21

Capital expenditure (133) (122)

Taxation (18) (35)

Interest (17) (24)

Repayment of leases (249) (275)

Profit on disposal of fixed assets* (1) (6)

Free cash flow before adjusting items to cash flow 105 611

Adjusting items to cash flow (33) (173)

Free cash flow 72 438

Less working capital presented within the Performance review (note A11) 88 (4 5 4)

Sustainable free cash flow 160 (16)

* Other non-cash items in EBIT, as disclosed within the Performance review, comprises share-based payments and profit on disposal of fixed assets in the above

reconciliation to free cash flow.

242 Currys plc Annual Report & Accounts 2021/22

A10 Reconciliation from liabilities arising from financing activities to total indebtedness

and net cash

Total indebtedness is a new measure used for the first time this reporting period and represents period end net cash, pension deficit,

lease liabilities and lease receivables, less any restricted cash. The purpose of this is to evaluate the liquidity of the Group with the

inclusion of all interest-bearing liabilities.

Net cash comprises cash and cash equivalents and short-term deposits, less loans and other borrowings. Lease liabilities are not

included within net cash. We consider that this provides a useful alternative measure of the indebtedness of the Group and is used

within our banking covenants as part of the leverage ratio.

The below provides a reconciliation of total liabilities from financing activities, which is considered the closest equivalent IFRS

measure, to total indebtedness and net cash.

30 April

2022

£m

1 May

2021

£m

Loans and other borrowings (note 18) (80) –

Lease liabilities* (note 19) (1,267) (1,326)

Total liabilities from financing activities (note 26c) (1,347) (1,326)

Cash and cash equivalents less restricted cash (note 15) 96 140

Overdrafts (note 18) (2) (6)

Lease receivables* (note 12) 4 4

Pension liability (257) (4 8 2)

Total indebtedness (1,506) (1,670)

Restricted cash 30 35

Add back pension liability 257 482

Add back lease liabilities 1,267 1,326

Less lease receivables (4) (4)

Net cash 44 169

* Net lease liabilities within the Performance review relates to lease liabilities less lease receivables.

Within the Performance review on page 78, management also refer to average net cash/(debt) and total average indebtedness.

Average net cash/(debt) and total average indebtedness comprises the same items as included in net cash and total indebtedness

as defined above, however with the net cash element calculated as the arithmetic mean average between April – April for the full

year to align to the Group’s Remuneration Committee calculation and as reported internally.

Glossary and Definitions continued

243

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Investor Information

Strategic Report

A11 Reconciliation of statutory working capital to working capital presented within the

Performance review

Within the Performance review on page 76, a reconciliation of the adjusted EBIT to free cash flow is provided. Within this, the working

capital balance of £(88)m (2020/21: £454m) differs to the statutory working capital balance of £(123)m (2020/21: £319m) as cash

flows on adjusting items are separately disclosed.

Working capital presented within the performance review is a measure of working capital that is adjusted from total IFRS measures

to remove the working capital on adjusting items, the nature of which are disclosed above. A description of costs included within

adjusting items during the period and comparative periods is further disclosed in note A5.

As discussed above, the Group uses adjusted profit measures in order to provide a useful measure of the ongoing performance

of the Group. A reconciliation of the disclosed working capital balance is as follows:

Year ended

30 April

2022

£m

Year ended

1 May

2021

£m

Working capital cash (outflow)/inflow (note 26b) (123) 319

Adjusting items provisions 53 93

Network debtor out of period revaluation 22 14

Exceptional receivable – legal settlement (note A5(vi)) (34) 28

Facility arrangement fees (6) –

Working capital presented within the Performance review (88) 454

A12 Summary of working capital presented within the Performance review

Within the Performance review on page 77, a summary balance sheet is provided which includes a working capital balance of

£(532)m (2020/21: £(684)m). The below table provides a breakdown of how the summary working capital balance ties through to

the statutory balance sheet. Network commission receivables are excluded from the breakdown as they are presented separately

in order to provide users additional information and visibility on a receivable balance that is subject to a key source of estimation

uncertainty. Further information on network commission receivables can be found in note 14 to the Group financial statements.

Note

30 April

2022

£m

1 May

2021

£m

Non-current assets

Trade and other receivables* 14 39 38

Current assets

Inventory 13 1,286 1,178

Trade and other receivables* 14 590 448

Derivative assets 25 28 24

Current liabilities

Trade and other payables 16 (2,368) (2,233)

Derivative liabilities 25 (11) (4 2)

Non-current liabilities

Trade and other payables 16 (96) (97)

Working capital presented within the Performance review (532) (684)

* Trade and other receivables excludes network commission receivables and contract assets of £190m (2020/21: £239m) as these are presented separately within the

condensed balance sheet in the Performance review.

244 Currys plc Annual Report & Accounts 2021/22

A13 Restatement of segmental information within the Performance review

As discussed above, during the period the Group’s reportable segments have been changed, and comparatives have been restated

accordingly. The below table provides a reconciliation of results as presented within the Performance review for the year ended

1 May 2021. The relevant adjustment is a reconciliation of the previously disclosed UK & Ireland Electricals and UK & Ireland Mobile

segments to the UK & Ireland segment.

Year ended 1 May 2021

UK & Ireland

Electricals

as previously

reported

£m

UK & Ireland

Mobile as

previously

reported

£m

UK & Ireland

£m

Income statement

Adjusted revenue 4,921 707 5,628

Revenue 4,921 721 5,642

Adjusted EBITDA 393 (102) 291

Adjusted EBITDA margin 8.0% (14.4)% 5.2%

Depreciation on right-of-use assets (104) (6) (110)

Depreciation on other assets (42) (4) (46)

Amortisation (38) (5) (43)

Adjusted EBIT 209 (117) 92

Adjusted EBIT margin 4.2% (16.5)% 1.6%

Adjusting items to EBIT (131) 28 (103)

EBIT 78 (89) (11)

EBIT margin 1.6% (12.3)% (0.2)%

Cash flow

Adjusted EBITDAR 401 (103) 298

Adjusted EBITDAR margin 8.1% (14.6)% 5.3%

Cash payments of leasing costs, debt and interest (155) (13) (168)

Other non-cash items in EBIT – 8 8

Operating cash flow 246 (108) 138

Operating cash flow margin 5.0% (15.3)% 2.5%

Capital expenditure (59) (1) (60)

Adjusting items to cash flow (63) (110) (173)

Segmental free cash flow before working capital 124 (219) (95)

Network debtor – 391 391

Working capital 3 (29) (26)

Segmental free cash flow 127 143 270

Glossary and Definitions continued

245

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Financial Statements

Investor Information

Strategic Report

Other definitions

The following definitions apply throughout this Annual Report and Accounts unless the context otherwise requires:

Acquisition intangibles Acquired intangible assets such as customer bases, brands and other intangible assets acquired through

a business combination capitalised separately from goodwill.

B2B Business to business

Board The Board of Directors of the Company

Carphone,

Carphone Warehouse

or Carphone Group

The Company or Group prior to the Merger on 6 August 2014

CGU Cash-generating unit

CODM Chief Operating Decision Maker

Company or the

Company

Currys plc (incorporated in England & Wales under the Act, with registered number 07105905), whose

registered office is at 1 Portal Way, London W3 6RS

Credit adoption Sales on Credit as a proportion of total sales

CRM Customer Relationship Management

Currys plc or Group The Company, its subsidiaries, interests in joint ventures and other investments

Dixons Retail Merger

or Merger

The all-share merger of Dixons Retail plc and Carphone Warehouse plc which occurred on 6 August 2014

EBT Employee benefit trust

ESG Environmental, social and governance

FVTOCI Financial assets measured at fair value through other comprehensive income

GfK Growth from Knowledge

HMRC Her Majesty’s Revenue and Customs

honeybee honeybee was our proprietary IT software operation for which an asset sale was completed on 31 May 2018

IFRS International Financial Reporting Standards as adopted by the UK

Market position Ranking against competitors in the electrical and mobile retail market, measured by market share. Market

share is measured for each of the Group’s markets by comparing data for revenue or volume of units sold

relative to similar metrics for competitors in the same market

MNO Mobile network operator

Net zero Net zero emissions includes our Scope 1, 2 and 3 emissions as reported on page 49. In 2020, we collaborated

with The British Retail Consortium and other major retailers on the development of a Climate Action Roadmap

to decarbonise the retail industry and its supply chains. The plan aims to bring the retail industry and its

supply chains to net zero by 2040. Our commitment to net zero meets a number of the criteria of the

SBTi Corporate Net-Zero Standard but is not fully aligned or validated against this standard. We will

develop and publish a robust net zero emissions roadmap for the Group which will provide detail on carbon

abatement for key emissions sources and neutralisation plans of any source of residual emissions that remain

unfeasible to remove.

NPS Net Promoter Score, a rating used by the Group to measure customers’ likelihood to recommend its

operations

Online Online sales, Online market share, and Online share of business relate to all sales where the journey is

completed via the website or app. This includes online home delivered, order & collect, Online in-store and

ShopLive UK

Online in-store Sales that are generated through in-store tablets for product that is not stocked in the store

Order & collect Sales where the sale is made via the website or app and collected in store

Peak/post-Peak Peak refers to the ten-week trading period ended on 8 January 2022 as reported in the Group’s Christmas

Trading statement on 14 January 2022. Post-Peak refers to the trading period from 9 January 2022 to the

Group’s year end on 30 April 2022

RCF Revolving credit facility

Sharesave or SAYE Save as you earn share scheme

ShopLive UK The Group’s own video shopping service where store colleagues can assist, advise and demonstrate the use

of products to customers online face-to-face

Store Store sales, Store market share, and Store share of business relate to all sales where the journey is

completed in store. This excludes online home delivered, order & collect, Online in-store and ShopLive UK

TSR Total shareholder return

WAEP Weighted average exercise price

246 Currys plc Annual Report & Accounts 2021/22

Shareholder and Corporate Information

Currys plc is listed on the main market of the London Stock

Exchange (stock symbol: CURY) and is a constituent of the

FTSE 250.

Company registration number

07105905

Registered office

1 Portal Way, London, W3 6RS, United Kingdom

Corporate website

www.currysplc.com

The website includes information about the Group’s vision

and strategy, business performance, corporate governance,

sustainability, latest news and press releases. The Investors

section includes information on the latest trading performance,

records of past financial results, share price information and

analyst coverage.

Share Registrar

Equiniti is the share registrar for Currys plc. Shareholders can

contact Equiniti as follows:

Post – Aspect House, Spencer Road, Lancing, West Sussex,

BN996DA, United Kingdom

Online – https://equiniti.com/uk/contact-us/shareholder-enquiries

Telephone – 0371 384 2089 (UK callers) or +44 (0)121 415 7047

(International callers). Telephone lines are open on UK business

days between 8.30am and 5.30pm UK time.

Shareholder enquiries

Any queries that shareholders have regarding their shareholdings,

such as a change of name or address, transfer of shares or lost

share certificates, should be referred to Equiniti using the contact

details above.

Managing shares online

Shareholders can manage their holdings online by registering

with Shareview at www.shareview.co.uk. This is a secure online

platform which is provided by Equiniti. To register, you will need your

shareholder reference number and this can be found on your share

certificate, form of proxy or any correspondence from Equiniti.

Unauthorised brokers (boiler room scams)

Currys plc is legally obliged to make its share register available

to the general public in certain circumstances. Consequently,

some shareholders may receive unsolicited phone calls or

correspondence concerning investment matters which may imply

a connection to the company concerned. These are typically

from overseas-based ‘brokers’ who target UK shareholders

offering to buy their shares or sell them what can turn out to

be worthless or high-risk shares in US or UK investments. These

communications can be persistent and extremely persuasive.

Share fraud includes scams where investors are called out of the

blue and offered shares that often turn out to be worthless or

non-existent, or an inflated price for shares they own. These calls

come from fraudsters operating in ‘boiler rooms’ that are mostly

based abroad. While high profits are promised, those who buy

or sell shares in this way usually lose their money.

If you are approached about a share scam, you should tell

the FCA using the share fraud reporting form at www.fca.org.uk/

consumers/report-scam-us where you can find out about

the latest investment scams. You can also call the Consumer

Helpline on 0800 111 6768.

ShareGift

If you have a very small shareholding that is uneconomical

to sell, you may wish to consider donating it to ShareGift

(Registered charity no. 1052686), a charity that specialises in

the donation of small, unwanted shareholdings to good causes.

You can find more information by visiting sharegift.org or by

calling 0207 930 3737.

Electronic communications

Shareholders will receive annual reports and other

documentation electronically, unless they tell our registrar that

they would like to continue to receive printed materials. This is in

line with best practice and underpins our commitment to reduce

waste. Shareholders may view shareholder communications

online instead of receiving them in hard copy. Shareholders may

elect to receive notifications by email whenever shareholder

communications are added to the website by visiting

www.shareview.co.uk and registering online.

Auditor

Deloitte LLP, 1 New Street Square, London, EC4A 3BZ

www.deloitte.com

Joint Stockbrokers

Deutsche Bank AG, 1 Great Winchester Street, London, EC2N 2DB

www.db.com

Citigroup Global Markets Limited, 33 Canada Square,

Canary Wharf, London, E14 5LB

www.citigroup.com

Company Secretary

Nigel Paterson, General Counsel and Company Secretary

cosec@currys.co.uk

Investor relations

Dan Homan, Investor Relations Director

ir@currys.co.uk

Currys plc

1 Portal Way

London

W3 6RS

United Kingdom

E: ir@currys.co.uk

www.currysplc.com

Currys plc Annual Report & Accounts 2021/22