Annual Report and Accounts 2023/24 Report

Introduction

Currys plc is a leading omnichannel retailer of technology products and services, operating online and through 719 stores in 6 countries.

Our vision

We help everyone enjoy amazing technology. We believe in the power of technology to improve lives, helping people stay connected, productive, fit, clean, healthy, and entertained. We're here to help everyone enjoy those benefits and, with our scale and expertise, we're uniquely placed to do so.

Strategic Report

1. 2023/24 highlights
2. Our markets

4 Our business

1. Investment case

1. Business model

1. Chair's statement

1. Chief Executive's statement

1. Our strategy

1. Our stakeholders

1. Sustainable business

1. Risk management

1. Principal risks and uncertainties

1. Going concern and viability statement
2. Key Performance Indicators
3. Performance review

Governance

1. Governance at a glance

1. Board of directors

1. Directors' report

1. Corporate governance report

1. Audit committee report

1. Disclosure committee report
2. Nominations committee report

107 Environmental, Social and Governance ('ESG') committee report

1. Remuneration committee report

1. Remuneration at a glance
2. Remuneration policy

1. Annual Remuneration Report for 2023/24

1. Statement of directors' responsibilities

Financial Statements

1. Independent auditor's report

1. Consolidated income statement
2. Consolidated statement of comprehensive income
3. Consolidated balance sheet
4. Consolidated statement of changes in equity
5. Consolidated cash flow statement
6. Notes to the Group financial statements

1. Company balance sheet
2. Company statement of changes in equity
3. Notes to the Company financial statements

1. Five period record (unaudited)

Investor Information

216 Glossary and definitions

228 Shareholder and corporate information

Non-financial and sustainability information statement

We 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:

www.currysplc.com/investors

For the latest news visit our website.

Technology plays a more important role in our lives today than ever before.

The UK technology market is worth £20.0bn(1) and decreased 3% over the last year. Although the overall market declined, PC and mobile accessories as well as software continued to see growth of 2% and 1% respectively.

In the Nordics, the technology market is worth NOK152.4bn (£11.0bn)(1) and saw a decline of 3% during the year despite small domestic appliances growing by 7%.

We are the leader in these markets with a 23.3% market share in the UK and a 27.7% share in the Nordics.

1. Consumer sentiment

After two years of high inflation and falling consumer confidence across our markets, there are early signs of inflation and interest rates falling. This has led to an improvement in consumer confidence in all of our markets, which could lead to increased sales in our more discretionary product categories.

2. Technology replacement cycle

Technology equipment undergo replacement every four to seven years due to obsolescence or the emergence of superior alternatives. A large amount of product was bought during the Covid pandemic, as consumers sought to upgrade their home technology. It has now been four years since the pandemic and we may start to see customers upgrading and replacing products bought during that period.

3. Artificial Intelligence (AI) evolution

AI is a rapidly emerging technology and we expect more of the products that we sell to incorporate AI enabled technology. As use cases become clear to customers, this emerging technology could drive further uptake and upgrades of technology products.

In the last year, Samsung launched the S24 mobile phone, which features AI technology, including live translation capabilities and generative photo and video editing.

After the year end, we were the first retailer globally to launch Microsoft Copilot+PC. This innovative productivity tool simplifies tasks using natural language queries. Some of its key benefits include market leading speed and performance, over 22 hours of battery life, and live translation.

In the UK & Ireland we trade as Currys and in the UK we operate our own mobile virtual network, iD Mobile. In the Nordics we trade under the Elkjøp brand. We're the market leader in all markets, able to serve all households and employing 24,000 capable and committed colleagues.

We help everyone enjoy amazing technology. We believe in the power of technology to improve lives, helping people stay connected, productive, fit, clean, healthy, and entertained. We're here to help everyone enjoy those benefits and,

with our scale and expertise, we're uniquely placed to do so.

Our full range of services and support makes it easy for our customers to discover, choose, afford and enjoy the right technology to the full. The Group's operations include Europe's largest technology repair facility, a sourcing office in Hong Kong and an extensive distribution network, centred on Newark in the UK and Jönköping in Sweden, enabling fast and efficient delivery to stores and homes.

We're a leader in giving technology a longer life through reuse, repair and recycling. We're reducing our impact on the environment in our operations and our wider value chain, and we aim to achieve net zero emissions by 2040. We offer customers products that help them save energy and water, as well as reduce waste, and we partner with charitable organisations to bring the benefits of amazing technology to those who might otherwise be excluded.

UK&I

£5.0bn

  Read more about our performance review on page 62.

Nordics

£3.5bn

  Read more about our performance review on page 62.

Group revenue by product

18%

28%

32%

6 Currys plc  Annual Report & Accounts 2023/24

Investment case

Clear #1 leading brand in all our markets

The UK technology market is worth £20bn and the Nordics market NOK152.4bn (£11.0bn). Our scale underpins our long term supplier relationships while our high brand awareness presents a significant opportunity for future growth by expanding our market share.

23.3%

market share in the UK&I

27.7%

market share in the Nordics

Large and flexible infrastructure supported by world class colleagues

Our extensive infrastructure is well invested and can be flexed to support sales and provide services in any channel and wherever is most convenient for customers. Our colleagues are highly engaged and help our customers enjoy technology that, while exciting, can be confusing and expensive. A better colleague experience drives a better customer experience, which in turn drives market share gains and profits.

Diversified across products, services, channels and geographies

We sell a full range of products across consumer electronics, computing, domestic appliances and mobile as well as complementary services that help customers enjoy technology for life.

44%

of revenues outside of UK

18%

28%

Group

revenue by

product

Mobile

Modern omnichannel network with further improvements to come

Customers browse and purchase tech products both in-store and online, allowing us to serve them according to their preferences and grow our market share. We are enhancing the shopping experience by integrating channels and focusing on range, price, availability, and getting it 'Right First Time'. This ultimately helps customers choose and buy the full solutions for their needs.

Our Services drive high margin, recurring revenue and have significant growth potential

Our Services enable customers to enjoy technology for life. With Europe's largest tech repair facility in Newark, and our own mobile operator, iD Mobile, we are uniquely positioned to provide these services. They deliver high margin, recurring revenue and have significant growth potential.

Sustainability and profit generation go hand-in-hand

Our sustainability and social impact strategy has three priorities: circular business models, eradicating digital poverty, and achieving net zero emissions by 2040. Our repair facilities give us the unique ability to give tech a longer life, driving outcomes that are good for customers, the environment and our profits.

12m

Protection plans across the Group

1.8m

iD Mobile subscribers

Strong track record of cost savings

We have delivered significant cost savings over the last three years and have clear opportunities to drive more efficiencies in our business by making more of our Group's scale and buying power, as well as harnessing the growing use cases of AI technology, which we are developing in partnership with Microsoft and Accenture.

1.4m

repairs carried out in 2023/24

8.1m

e-waste products collected across the Group for reuse or recycling

Cash flow ambitions should deliver healthy shareholder returns

We aim to improve our adjusted EBIT margins which alongside tight discipline on capital expenditure, exceptional cash and working capital, will enhance our cash flow. With a stronger balance sheet and steady growth, we aim to return increasing amount to our shareholders.

Competitive strengths

Modern omnichannel network

Our 719 stores are well located and invested to provide a true omnichannel experience. Our infrastructure can also be flexed to support sales and provide services wherever is most convenient for our customers.

  Read more on page 20.

Established and well loved brands

Each of our brands has a long history as the customers' preferred brand.

  Read more on page 5.

Strong supplier relationships

Our strong relationships with suppliers enable us to provide the best range and availability of relevant products at competitive prices.

  Read more on page 30.

Capable and Committed Colleagues

Our colleagues are our greatest advantage in helping customers choose, afford and enjoy the technology that is right for them.

  Read more on page 16.

Unique Services capabilities

We are uniquely positioned within tech retail to help customers get started with delivery, installation, and set-up, and help give tech a longer life through protection, repair, trade-in, and recycling. Central to this offering is Europe's largest technology repair centre, our facility in Newark. Additionally, we help customers get the most out of their tech through connectivity, especially with iD Mobile.

  Read more on page 22.

Customers are at the heart of everything we do. We work constantly to improve the customer experience and deliver value for all stakeholders.

Customers

We help customers choose the right technology across a large 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 24,000 colleagues who help customers make the right and most sustainable choice

in stores and online

Easy

When customers know what they want, we make it easy for them to get it

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.

Enjoy