Contents

David Tyler, Finance Director - Introduction

QUESTIONS AND ANSWERS

Q1a Impact of Argos Extra on sales figures

Q1b Incremental sales in stores

Q2a Pick up in credit card marketing in N. America

Q2b Particular areas of strength

Q2c Alternative cost and profitability outlook since FCRA report

Q3 Homebase sales growth breakdown

Q4a Reasons for stronger Q4 than Q3 in Argos

Q4b Prospects for deflation

Q4c 650 stores as a medium term target for Argos

Q4d Should have started on market purchases earlier in the year

Q5a Experian and impact of FCRA

Q5b Rules to be finalised by June

Q6a Argos range expansion and particular successes

Q6b Consumer Direct growth rates

Q7a Competitor developments in direct catalogue market

Q7b Formal strategy from Barclay Brothers

Q8a Homebase gross margin

Q8b Product categories showing gains

Q9a Gaining market share in Homebase

Q9b Benefits of scale from Argos and Homebase

Q9c Buying in of Experian affiliates

Q9d Update on Argos Financial Services

Q10 Targeting a credit rating upgrade

Closing comments