Interim Management Statement

Thursday 13 September 2012

Darty plc Interim Management Statement

Darty plc (formerly Kesa Electricals plc) today announces an Interim Management Statement for the period 1 May 2012 to date. Financial information is for the first quarter period from 1 May 2012 to 31 July 2012, based on unaudited management accounts.

Revenue growth as reported in Euros Revenue growth in local currency

* BCC, Vanden Borre and Datart

** Darty Italy, Darty Turkey and Darty Spain

Summary

·; All our markets have remained challenging. Against this background:

o Total revenue in the period increased by 1.1 per cent in local currency and was flat on a like-for-like basis, despite a very weak Vision market, particularly in France following the digital switch over last year

o Web-generated sales increased by over 13 per cent supported by the strength of our cross channel approach

o Gross margin down 140 basis points, reflecting competitive pressures and product mix across the Group

·; New commercial agreement for Darty Telecom completed on 24 July

·; Review of the Group, its markets and its operations commenced under the new Chairman

·; As separately announced, upcoming change of Chief Executive following completion of the review in December

Group Review

The comprehensive review of the company, which we intend to complete by December, is covering all aspects of the business, including but not limited to the rejuvenation of Darty France and its profitability, accelerating the elimination of losses in our Developing businesses and the targeting of cost savings across the Group of at least €20m per year, on which work has already started. We are working with new advisers to support us in accelerating the implementation of the conclusions of the review.

The recruitment of new non-executive directors has begun and as we announced separately today Thierry Falque-Pierrotin will leave the company by mutual agreement on completion of the review in December and we have commenced the search for a new Chief Executive.

Alan Parker, Chairman of Darty plc, commented:

"Under my Chairmanship the Board is committed to increasing shareholder value and we will report the results of the review in December. We are determined to take the right decisions to restore profitability and create the foundations for our long term success. This will not happen overnight but in our brands and talented colleagues we have some great assets to build on."

Commenting on the Group's performance, Chief Executive Thierry Falque-Pierrotin commented:

"Markets have remained challenging, but we saw growth in all product categories except Vision which is still suffering following the digital switch over last year, particularly in France. We are seeing strong Multimedia sales which should be further supported by new products in the pipeline. We have also seen the benefits of our cross channel approach with further good growth in web generated sales.

"We continue to reinforce our price positioning and improve store and back office efficiency so that we are well prepared for the more significant trading periods ahead."

Group

Total Group revenue increased by 1.0 per cent in Euros, 1.1 per cent in local currency, and was flat on a like-for-like basis. The revenue performance reflected growth in all product categories, with the exception of Vision which remained very weak, particularly in France. This sales growth partly off-set product category margin rate pressure in challenging market conditions, with overall gross margin down 140 basis points. Web-generated sales continued to be developed successfully with overall growth of over 13 per cent to represent over 11 per cent of total product sales.

Darty France

At Darty France total revenue was down 1.2 per cent and by 2.5 per cent on a like-for-like basis, broadly in line with the market. Growth in White Goods, Multimedia and Communications was more than off-set by the very weak Vision market following last year's digital switch over, an effect we anticipate will continue for the coming months. With some small positive sales mix effect and against a relatively strong quarter last year, overall gross margin was down 80 basis points in line with that seen in recent quarters. Web-generated sales continued to grow strongly, up nearly 12 per cent to over 13 per cent of total product sales. The cost plans we launched last year are on track. The new Darty Telecom agreement completed and cash was received on 24 July and a new offer has now been launched in all stores.

Other established businesses

At our Other established businesses, BCC, Vanden Borre and Datart, total revenue increased by 8.8 per cent in local currency and by 7.1 per cent on a like-for-like basis, with strong growth in the Netherlands and particularly in Belgium. All three businesses outperformed their respective markets. Overall web-generated sales continued to grow at a double digit rate to 9 per cent of total product sales. General market conditions and negative sales mix effect from very strong growth in Multimedia resulted in gross margin being down around 200 basis points. During the period one new store was opened at BCC.

Developing businesses

At our Developing businesses, Darty Italy, Darty Turkey and Darty Spain, revenue grew by 2.1 per cent in both local currency and on a like-for-like basis, with sales growth and continued strong market outperformance in Spain. Web-generated sales more than doubled to three percent of total product sales. Overall gross margin was down over 200 basis points, impacted by an adverse sales mix from strong growth in Multimedia and increased promotional activity in the Italian and Turkish markets. During the period one store was closed in Spain.

Financial position

Except as detailed above, there have been no material events or transactions impacting the Group's financial position that have taken place since the previously announced 30 April 2012 balance sheet date.

Outlook

As with other companies in this sector, we face very tough trading conditions, with depressed consumer confidence and structural changes within the market. The aim is to put in place the right strategy and business model, building on the strengths of our brands and market positions to create long term success.

As usual trading will overall be more weighted towards the second half of the financial year and we expect to benefit from weaker comparatives as the year progresses.

Board changes

As announced on 9 August, David Newlands retired from the Board with immediate effect and was succeeded as Chairman by Alan Parker. Today we announced that Thierry Falque-Pierrotin will leave the Group by mutual agreement following completion of the review in December. As previously announced, Andrew Robb will step down as a Non-Executive Director at today's AGM.

Store numbers and selling space as at 31 July

There will be a telephone conference call for analysts at 07:45 on 13 September 2012. Dial-in number: +44 (0) 20 3003 2666. A recording of this call will be made available after 10.00am. Replay dial-in number: +44 (0) 20 8196 1998, Access Pin: 6645063

The Group will issue its Half Year Results on Wednesday 12 December 2012.

Enquiries

Analysts

Darty plc

Simon Ward +44 (0) 20 7269 1400

Media

Darty plc

Simon Ward UK +44 (0) 20 7269 1400

Vinciane Beurlet France +33 (0) 1 43 18 52 00

Finsbury

Rollo Head +44 (0) 20 7251 3801

Jenny Davey

About Darty plc

Darty group is a leading cross channel service led electrical retailer operating nearly 500 stores in nine European countries and achieving 11% of its products sales on the web. With more than 16,500 people, it generates an annual turnover of over €4 billion through three operating segments: Darty (France), Other established businesses (which consists of Vanden Borre in Belgium, BCC in the Netherlands, and Datart in the Czech Republic and Slovakia), and Developing businesses (which consist of Darty Italy, Darty Spain and Darty Turkey). Its ordinary shares are listed with the UK Listing Authority and trade on the market for listed securities on the London Stock Exchange under the symbol DRTY.L. It is also listed on the Premier Marche of the Paris Stock Exchange.

For further information, please visit the company's website, www.dartygroup.com.