52 weeks to 28 th March 2015 FY15 Group Highlights KEY HIGHLIGHTS - PowerPoint PPT Presentation

B&M European Value Retail SA Full Year Results Presentation 52 weeks to 28 th March 2015

FY15 Group Highlights KEY HIGHLIGHTS • Group revenues increased by 29.5% to £1,646.8m • UK revenues +20.0% with LFL revenues +4.4% • Group adjusted EBITDA increased by 33.6% to £174.2m • Group adjusted Profit before Tax increased by 55.7% to £135.0m • 52 net new stores opened in the UK • Integration of German acquisition proceeding to plan • Net cashflow from operations £152.9m, an increase of 33.3% • Continued investment in infrastructure and a reduction in net debt to adjusted EBITDA multiple of 2.2 times • Final Proposed Dividend of 2.5p per share Ref: 750493 2

Paul McDonald Chief Financial Officer Ref: 750493 3

Summary Profit Before Tax £ millions, 2014 2015 % Group Stores 373 475 Revenues 1,272.0 1,646.8 +29.5% Gross Profit 432.0 569.9 +31.9% % 34.0% 34.6% 59bps Operating Costs (301.6) (395.7) +31.2% Adjusted EBITDA 130.4 174.2 +33.6% % 10.2% 10.6% 33bps Depreciation (9.7) (15.6) +60.2% Interest (33.9) (23.6) -30.4% Adjusted Profit Before Tax 86.7 135.0 +55.7% Exceptional Costs (17.7) (24.1) +36.6% Exceptional Interest Costs (65.4) (49.2) -24.9% Profit Before Tax 3.6 61.7 +1602.2% Adjusted Earnings per Share (p) 6.9 10.3 +49.2% Statutory Earnings per Share (p) (1.9) 3.4 - Note: The 2014 numbers relate to the 52 weeks ended 29 March 2014. Ref: 750493 4

Group Revenue Bridge £ millions REVENUE 2014-2015 KEY HIGHLIGHTS 121 1,647 199 • 52 net new stores opened in the UK 55 110 • Prior year openings trading in line with 89 expectations 1,272 • LFL revenues +4.4% against tough comparable of +6.5% last year • £120.6m of revenue from Germany for the 11 2014 FY Effect FY14 Net New LFL Germany 2015 months of ownership Openings Stores Note: The 2014 numbers relate to the 52 weeks ended 29 March 2014. Ref: 750493 5

Strong EBITDA Growth £ millions, ADJUSTED EBITDA BRIDGE 2014-2015 UK 10.7% 10.2% Margin % 30 10.6% Group Margin % 11 174 8 16 14 (5) 130 2014 FY Effect of FY14 Net New Stores LFL Other Germany 2015 Openings Note: The 2014 numbers relate to the 52 weeks ended 29 March 2014. Ref: 750493 6

LFL Sales Growth UK QUARTERLY LFL SALES GROWTH H2 +4.0% H2 +5.6% 8.7% 7.9% 7.3% 7.0% 6.2% 6.0% 6.0% 4.9% 4.7% 4.5% 3.7% 3.4% Q1-13 Q2-13 Q3-13 Q4-13 Q2-14 Q1-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Note: The 2014 numbers relate to the 52 weeks ended 29 March 2014. Ref: 750493 7

Gross Margin Trend GROSS MARGIN (%) KEY HIGHLIGHTS 34.6% 34.0% • 59 bps improvement in gross margin to 34.6% • UK margins have improved by 41 bps driven by: • Strong sell through of seasonal product • Better buying and hence less markdown needed in non-grocery generally • Impact of German acquisition has improved the overall group gross margin by 18 bps • Our strategy is to maintain price leadership to drive growth 2014 2015 Note: The 2014 numbers relate to the 52 weeks ended 29 March 2014. Ref: 750493 8

Operating Costs £ millions, KEY HIGHLIGHTS 2014 2015 Total UK 301.6 361.9 • UK Operating costs have been carefully managed in line Germany - 33.8 with revenue growth Total UK % 23.7% 23.7% • Our 2 key operating cost metrics, store rents and wages are Germany % - 28.0% in line with last year • Central costs are in line as a % of sales • Cost of new warehouse capacity • Investments in head office teams • Costs of operating as a PLC Note: The 2014 numbers relate to the 52 weeks ended 29 March 2014. Ref: 750493 9

Exceptional Items £ millions, KEY HIGHLIGHTS 2014 2015 • Costs associated with the IPO and the group restructuring IPO Costs / Restructuring Fees 6.2 20.6 Jawoll Acquisition Fees - 0.8 • Costs incurred on the acquisition of Jawoll Fair Value Movements 1.9 0.6 Pre-Opening Costs 3.8 5.3 • Fair value movements on FX and inter-company loans CPO Income (0.7) (1.1) Excise Duty Dispute 3.6 - • New store pre-opening costs (52 net new UK stores and 1 LTIP 1.4 - German store) Other 1.5 (2.1) Total 17.7 24.1 • Compulsory Purchase Order income (closed stores) Note: The 2014 numbers relate to the 52 weeks ended 29 March 2014. Ref: 750493 10

Interest Expenses £ millions, KEY HIGHLIGHTS 2014 2015 • Interest and FRS4 fees relating to the bank debt Interest 33.9 21.7 FRS4 Fees - 1.9 • FRS4 fees write off, £28.8m relating to the previous debt Total 33.9 23.6 facilities Fees Write Off - 28.8 • Non-cash impact, £2.0m of IFRS accounting for Jawoll put Put/Call Option - 2.0 / call option Preferred Equity Certificates 67.3 16.2 • Non-cash interest, £16.2m on the preferred equity Fair Value (1.8) 2.2 certificates relating to the previous capital structure Total 65.4 49.2 • Fair value, £2.2m mark to market of interest rate hedging Note: The 2014 numbers relate to the 52 weeks ended 29 March 2014. Ref: 750493 11

Strong Cash Flow Conversion £ millions, OPERATING CASH FLOW CASH FLOW STATEMENT % Conversion 64% 72% £m 2014 2015 Adjusted EBITDA 130.4 174.2 125 Change in Working Capital (13.6) (15.3) New Store Capex (18.0) (21.8) 84 Infrastructure Capex (8.0) (2.4) Maintenance Capex (7.0) (9.0) Capex (33.0) (33.2) Operating Cash Flow 83.8 125.4 2014 2015 Operating Cash flow significantly Net debt reduced to £381m and improved due to EBITDA growth net debt to adjusted EBITDA and tight working capital reduced to 2.2 times discipline Note: Cash Conversion is defined as Operating Cash Flow as a percentage of Adjusted EBITDA. The cash exceptionals relate Ref: 750493 to IPO / restructuring fees / financing fees, Jawoll acquisition fees, pre-opening costs, other. 2014 relates to the 52 weeks 12 ended 29 March 2014.

Simon Arora Chief Executive Officer Ref: 750493 13

Large Addressable UK Market GENERAL MERCHANDISE £127bn ¹ CORE ADDRESSABLE MARKET £280bn+ ¹ FOOD RETAILERS £157bn ¹ • B&M’s UK revenues £1.5bn • Market share c.0.5% • B&M enjoys 2.9m transactions per week • Entrenched part of shopping habits, despite limited advertising spend Ref: 750493 1 Source: Euromonitor; refers to 2013 UK store-based retail value sales (RSP) excluding sales tax. 14

B&M “The Limited Assortment Discounter” Structural Growth for B&M Disciplined SKU Count Diversified Product Range DISTINCTIVE MARKET POSITION Ref: 750493 15

Highlights by Product Category GENERAL MERCHANDISE • Ongoing obsession with direct sourcing! (direct import mix increased to 29% versus 27% in 2014) • Expanding own label programme (132 registered brands versus 96 in 2014) • ‘Direct to Retail’ licensing is working well • Constant investment in design and development to keep close to consumer tastes • B&M is highly differentiated from category specialists and plays the structural shift to both Value and Convenience Ref: 750493 16

Highlights by Product Category GROCERY • Core food revenues continue to remain positive LFL despite competitive environment • Achieved against a deflationary backdrop • Nimble limited assortment model. • We are able to “self - help” eg Own Label programme or re- allocation of SKU’s between sub -categories Ref: 750493 17

UK Store Rollout Update FY2015 OPENINGS HIGHLIGHTS • Stores coming equally from ‘Retailers Rightsizing’, Lease expiries and Newbuild development 52 Net New Store • Both infill and new regions, with limited cannibalisation Openings ¹ • 42 of the stores were in Out of Town locations • We expect to open 60 net new stores in FY2016 TOP 10 RETAIL PARK TENANTS 2 m Ft Sq % inc in 2014 2013 m Ft Sq 2013 area Rank Rank Retailer 2014 1 1 B & Q 8.07 8.13 -1% 2 3 Currys 4.95 5.01 -1% 3 2 Homebase 4.80 5.15 -7% 4 4 Matalan 3.93 3.85 2% 5 5 Next 3.36 3.30 2% 6 11 B&M 2.97 2.28 30% 7 6 Carpetright 2.75 2.81 -2% 8 7 Argos 2.74 2.80 -2% 9 8 Pets at Home 2.70 2.60 4% Note 1: There were 54 new stores openings and 2 closures 10 9 TK Maxx 2.68 2.45 9% Note 2: Source: Trevor Wood Associates : The Definitive Guide to Retail and Leisure Parks 2015 Ref: 750493 18

Strong Results Across The South FY2015 SOUTHERN OPENINGS HIGHLIGHTS • We have opened 19 stores in the South during FY2015 • In the last 3 years there have been 60 new store openings in the South of the UK, this represents 38% of store openings • In the last 3 years 50% of the top 20 stores opened have been in the South • The returns from new stores in the South are consistent with other areas of the country Ref: 750493 19

International Expansion KEY HIGHLIGHTS FOOTPRINT – GERMANY • Trading in line with management expectations • Good customer response to the direct sourced product from B&M’s Far East supply chain • Further penetration of direct sourced products planned for H2 Soltau • Two new pilot stores opened, one on 28/3/15 Head Office (1,336m2) and the second on 9/4/15 (1,063m2) • Warehouse expansion underway in readiness for future store growth, approx. € 4.5m capex Ref: 750493 20