#1This way for bm TEN THOUSAND POUNDS bm OW OPEN bm home store Big Brands Big Savings WOW! 75% NEW! FAMOUS BRAND bm Germany Analyst and Investor Day Hamburg, 17 June 2016#2Today's Itinerary 8:45AM 10:00AM 10.15AM-10.45AM 11.00AM-11.30AM Management Presentation & Q&A Tour of Jawoll store in Soltau Tour of Jawoll Distribution Centre 11.30AM-1.00PM Lunch - drive to Stade 1.00PM-1:30PM 1.30PM 3.00PM Tour of Jawoll Stade (smaller format store) ⇒ Travel to Hamburg Airport bm June 2016 - Germany Analyst and Investor Day 2#3Today's Presentation 8:45AM-9:00AM I. Rationale for the Jawoll Acquisition 9.00AM-9.40AM II. Jawoll's history and growth plans III. Financial Performance - 9.40AM 10.00AM IV. Q&A Presenter Simon Arora, B&M Group CEO Ingo Stern, Jawoll CEO Nils Hansen, Jawoll CFO Paul McDonald, B&M Group CFO Ingo Stern/Simon Arora bm June 2016 - Germany Analyst and Investor Day 3#4I. Rationale for the Jawoll Acquisition Jawoll#5Jawoll: a good platform B&M ACQUIRED 80% OF JAWOLL IN APRIL 2014, REMAINDER OWNED BY JAWOLL MANAGEMENT TEAM 1 Jawoll is a successful regional retailer that delivered consistent growth and profits Jawoll bm 2 3 Jawoll business model is similar to B&M, a discount variety good retailer with significant store roll out opportunity Jawoll is well positioned to expand in the General Merchandise discount market in Germany through shared best practice with B&M bm June 2016 - Germany Analyst and Investor Day 5#6Jawoll is a successful, growing business (€m) Jawoll opened 2/3 stores per year on average since 2007... ...and delivered healthy margins. 56 48 49 50 45 24 41 42 17 2 14 12 22 36 27 182 12 163 155 154 141 143 146 9.0% 9.3% 7.6% 7.6% 113 105 2 1 2007 2008 2009 2010 2011 2012 2013 FY 2015 FY 2016 2012 2013 2015 2016 Net sales (€m) Stores Ajusted EBITDA (€m) % Adj. EBITDA Acquisition of a small chain Hafu 11 months ending March 2015 1 Years 2007 to 2013 are December Year-ends and German GAAP 2 FY15 (11 months) and FY16 are March Year-ends and IFRS bm June 2016 - Germany Analyst and Investor Day 6#7Store roll-out opportunity exists even in Core Region REASONS FOR NOT VISITING, GIVEN BY THOSE AWARE OF JAWOLL, (2014 ONLINE SURVEY, N=483) 68% Not aware 16% 3% 3% 12% Other The products are poor quality I prefer to visit a different store Another store is more convenient for me • Despite modest store footprint, there is 32% awareness of Jawoll brand in its Core North West Germany Region Two thirds of those aware of Jawoll do not have a convenient store nearby Aware 32% 67% No nearby Jawoll store North-West region Aware of Jawoll Note: Core region is North-West Germany including Niedersachsen and Schleswig-Holstein bm June 2016 - Germany Analyst and Investor Day ས 7#8Jawoll and B&M share key structural similarities JAWOLL MODEL IS COMPATIBLE WITH B&M'S MEANING WE CAN LEVERAGE SYNERGIES... 1 2 Comparable store size and locations to B&M Homestore model Strong overlap in product categories across both businesses Direct Sourcing in Far-East Buying scale & relationships Merchandising know-how & retail disciplines Roll-out experience 3 Similar financial metrics, at store and central level ...PARTICULARLY AS WE BUILD SCALE. bm June 2016 - Germany Analyst and Investor Day 00#9Both B&M and Jawoll are similarly positioned in large markets SPECIALIST RETAILERS £129bn¹ PERFUME WH Smith TOYSЯ'US HOMEBASE Argos Currys B&Q MATALAN pets Ryman at home Dunelm Boot TESCO ALDI Sainsbury's ASDA SPARA L&DL bm Superdrug wilkinson home bargains 99p stores y product Poundland under a Poundworld everything £1 £pound stretcher the original value store, M MORRISONS £163bn¹ ocado FOOD RETAILERS 1 Source: Company estimates SPECIALIST RETAILERS €210bn¹ OBI TAKKO BELLANDRIS D FASHION -Mein Gartencenter- DEICHMANN SATURN ROSSMANN DAS FUTTERHAUS dm FRESSNAPF Dehner toom BAUHAUS MediaMarki kik real- A ALDI Ε EDEKA Kaufland Herbal Ich richtig! LIDL REWE Netto Marken-Discount Jawoll PENNY famila ACTION Philipps TEDİ Pfennigpfeiffer Euroshop Mäc-Geiz DEK HAUSHALTS-DISCOUNTER Sonderposten KODI WOOLWORTH £7bn¹ GENERAL MERCHANDISE DISCOUNTERS €195bn¹ FOOD RETAILERS bm June 2016 - Germany Analyst and Investor Day €2bn¹ GENERAL MERCHANDISE DISCOUNTERS 6#10There is no dominant discount variety retailer Philipps Jawoll Company Revenues (€m) OOT Pfennigpfeiffer 110 In- town REPO Deutschland Sonderposten TED WOOLWORTH 182 350 1 Store Numbers 56 100 56 70 70 330 467 40 40 118 250 KODK 116 206 Euroshop 95 181 Mäc-Geiz 66 DER HAUSHALTS-DISCOUNTER 1 Jawoll estimate of Retail Revenues - Thomas Philipps is a franchise business 177 1,293 300 bm June 2016 - Germany Analyst and Investor Day 10#11Jawoll is well positioned to expand nationally Jawoll is a profitable business, which delivers attractive returns despite its current modest size Integration has gone well • Jawoll will increasingly target the Category specialists rather than Grocery Jawoll can now access B&M's Far East supply chain Invested in IT and physical infrastructure ahead of future growth Expanded buying and new store development teams (12 hires) Jawoll is now drawing on B&M best practices... bm • Progressively reducing SKU count (now c. 10,000 SKU's, down from c.15,000 SKU's) Successfully launched smaller store format Introducing Auto-Replenishment and Merchandising Principles ... and can rely on its own strengths. • Jawoll buying team selects the product offer Jawoll Retains expertise in plants and flowers category • Continued success in direct marketing/leafleting campaigns bm June 2016 - Germany Analyst and Investor Day 11#12II. Jawoll's history and growth plans Jawoll 12#13The Jawoll team INGO STERN Managing Director • • Ingo joined Jawoll in 2000 and has been the Chief Executive Officer of Jawoll since 2007. He has over 20 years of experience in the German retail industry. NILS HANSEN Finance Director RALF HARTWICH Trading Director • Nils joined Jawoll as Finance Director in 1999. • • He has over 16 years of experience in accounting and finance in retail. • Current Senior Management Organization chart Ralf joined Jawoll in 1997 and has been the Trading Director since 2007. He has over 30 years of experience as a buyer in the German retail industry. TRADING DIRECTOR FINANCE DIRECTOR BUYING (25) LOGISTICS MANAGER IT MANAGER CEO OPERATIONS DIRECTOR PROPERTY ACQUISITION (2) REGIONAL TEAMS June 2016 - Germany Analyst and Investor Day 13#14Jawoll's history Mr Dieter Stern opens the first Jawoll store in Soltau COMPANY HISTORY Consolidation of distribution between the four partners Acquisition and Integration of a small chain (HAFU) Introduction of a new ERP 1985 1987 2000 2007 2008 2009 2012 2014 Association of local retailers under the Jawoll brand Ingo Stern and Ralf Hartwich take over the business Progressed integration of Jawoll stores & expanded DC capacity Jawoll becomes part of B&M. JAWOLL KEPT GROWING... 56 . 48 49 50 24 45 41 42 182 36 27 163 2 155 154 141 143 146 113 105 1 2007 2008 2009 2010 2011 2012 2013 Net sales (€m) Own stores FY 2015 FY 2016 11 months ending March 2015 ...AND GENERATING HEALTHY MARGINS • . Jawoll has consistently generated healthy EBITDA margins since 2007. Jawoll operates in OOT retail parks and stand-alone stores, usually near mainstream hypermarkets and specialist retailers. The Jawoll brand enjoys strong recognition in its catchments through extensive marketing activity over many years. Jawoll benefits from a loyal and experienced team of 1,200 colleagues. 1 Years 2007 to 2013 are December Year-ends and German GAAP 2 FY15 (11 months) and FY16 are March Year-ends and IFRS June 2016 - Germany Analyst and Investor Day 14#15Customer Profile and Shopping Behaviours Typical Jawoll customers include two particular profiles Low income earners • Average household disposable income of c.€32k in Germany¹ • • Loyal weekly shoppers (c.30% of Jawoll clients visit every week¹) Price sensitive Car users Hobby gardeners & home DIY Gardening is amongst the most popular outdoor activities in Germany More occasional shoppers, looking for value items and Seasonal purchases Car users Biased towards older demographic MOST CUSTOMERS MISSIONS ARE PLANNED AND REGULAR Jawoll customers missions are similar to other OOT peers Observed frequency of visit 1 11% 13% Just passing by 24% 24% General browsing for deals Weekly 30% 31% 30% Follow-up on advertisement Planned Purchases 34% 32% Buy a specific item 1 2 Jawoll Out of town 1 Company estimate 2 OOT includes Jawoll, Thomas Philipps, Pfennigpfeiffer, Posten Boerse and Zimmermann June 2016 - Germany Analyst and Investor Day Less than once a month 20% 1-3 times per month 50% Average basket €17.70 15#16Product mix BROAD PRODUCT MIX % of net sales, FY16a Food 18% Grocery 32% Drinks 4% WESK TOMAT FMCG 10% Clothing & shoes 8% • WITH A DIFFERENTIATED PROPOSITION Jawoll offers more choice than limited assortment grocers with c.10,000 continuity lines across broad spectrum of categories On average 4,000 shoppers per week per store. Homewares 23% Non-Grocery 68% • The Jawoll average basket is €17.70 Seasonal 10% • Two trading peaks during the year: Plants 9.5% Gardening 8.5% DIY, car & bike 9% Pringle Pringle ORIGIN BRILLANCE LISTERINE 100% March to June for outdoor, gardening items & plants Christmas and New-Year, with a particular strength in fireworks JAWOLL OFFERS BOTH EVERYDAY AND SEASONAL ITEMS 50 Solar LED ARIEL Lichter- kette WEISS Phantasies L.E.D June 2016 - Germany Analyst and Investor Day Rasenaktivator 16#17Well developed direct marketing program Jawoll Sonderposten-Märkte Bei uns schon Sommerpreise für ca. 750.000 Pflanzen: RIESENAUSWAHL an Baumschul, Beet-und Balkonpflanzen sowie Rosen und Stauden Campanula GET MEE in leich Coca-Cola XXL 5 WASCHEN GRATIS Weißer Riese Leg Pad 100 Weißer Riese 11,9% XXL +5 WASCHEN GRATIS Weißer Riese enschaukel mut Schirm 12x14 Flasche 179. Großtafeln Schokolade 1000-1996.63 2.49 Mehr- stammiger chenbaum 21 Top adidas Sport-Shirt 8,99 Holz-Lasur 14.99 4 Sessel zu einem Preis! Klappsessel 1898 4 Stühle zu einem Preis! Rattan-Stuhl Holzlasur 24.99 54-Dose 12.99 29.99 4x Stühle Nechtopfset Keramik-Bratpfanne 48teiliges Besteckset Hesserblock Darpha Sh Touch. Rainig Fat 29.99 15 und 9.99 Russel Hobb eder Set 24 cm 00 Aluminium Bratpfanne Kabar, Artha Hardtanggal 12teiliges Steak-Besteck Bratpfanne teiliges Kochtopf-Set Oreo Minis o. Milka Maps Mix Milka Milka Milka Hekse 14,99 Lichernetze Riesenauswahl an Lichterketten! Alle stromsparend, warm-weiße Yoder kaltweiße LEDS (100-13005) Softcake Lichterrete Min ORE 49 99-250/300-9 Snax Milka Keks-Stabchen Marken-Schokolade Feedera Schokolade Zartbitter HERREN 100g SCHWARZE HERREN 1000 -99 99 Backmischung Dino-Muffins 11.000 -4.4 49 Fiskaffee 13% Dose an Twix 275-0 Mocktail Twix Kinder Maxi Kinder- Riegel Krusovice 99 Coca-Cola light Mix-Getranke 10er-Friendspack WARSTEINER Bier 10 x 0.39-+-Dose 1,99 Jan SA-Code o milka Kinder maxi Mit unseren LED-Glühlampen Jetzt zu Sommerpeisen! sparen! a. E Preist Brat-Hasserolle 7teiliges Kochtopfset Innen-LED Rohre 14.99 99 LED! 200 LED 14.00 Lieste 1299 LED Lichterkette 190 Lb JL Mua cernend rgban, versi LED 100 なん LED JAM Lichterbrücken in großer Auswahl ten. His L 7LH 12.99 Girlanden LED! ALED 14.9 Jaw. Edizu 10700. Dember 2016 Cole LED-Kerzen Laterne Verona Laterne 3,99 99 66 20er LED Lichterkette EAR LED Flutlicht 49 20 Glühlampen LED-Tischleuchte SOLAR LED Leuchte SOLAR LED-Stablicht 2.99 Strauch • 16 LED 2.6m leaflets distributed every week LED Balkenkasten beleuchtet • Distributed every Sunday or Wednesday 480er LED-Solar Lichter kette ter Pack LED Gartenstecker 4,99 TO SOLAR LED Gartenstecker Wandhanger Eulen mit Laterne 6.99 LED Hase 20 om 179 16teiliges 24teiliges Besteck-Set Versch. Messersets Besteck M Leful Babsha Te Tockfal Ja Thermo-Isolier-Kannen Edelstahl L 30 Liter 9.99 Mülleimer Müllbeutel Bakwash Farbas, miZeyland.co Liter Viola bubli z. B. Kook was Steiliger Messer- Abfallsäcke 14.99 Küchenmatte 5.99 Q3 114 Hasten ständer 6.99 Holz-Schutz Holatasur 5 Liter 14-99 9 Watt 3-D-Brille für Smartphone 99 Net als Arthal sind nich 22.99 Markisen! Basal Artku LED-Lampe Gelenkarmim Markisen 3,00 x 2,50 m 149 3,60 x 260 m 100- 500x300 m 299 Kassetten Markisen 13.50 x2,50 m 222 400x2,50 m 249 99. 4,00 x 2,10 m 189- 500 2.5 199. Seiten-Markisen 35m Rankton home Hel 999 Klemm-Markusen T 99. 4.99 9.99 LED Buchsbaumkaugel LED-Carten- Laterne Leuchten SOLAR SOLAR 19.99 28 em 99 Edelstahl-LED LED Stimmungslicht Wegeleuchten SOLAR Jur 5.99 LED-Leuchte 4.99 SOLAR SOLAR 17.99 Terrassen- Kamin 18050 am Garten-Kamin 2er-Pack 19.99 119,- 29.99 June 2016 - Germany Analyst and Investor Day • Captured within store costs Digital/social media marketing opportunities 17#18Jawoll offers compelling value NA ulti ex Erfrischung 2.22 € 2.49 € 2.99 € für unterwigst Coca-Cola 6x0.33 Jawoll E center HERKULES TENGELMANN T "BURSTING FLAVOUR TE Pringles Original 1.29 € 1.49 € 1.69 € Jawoll famila Globus KEIN STROMANSCHLUSS NOTWENDIG SOLAR Solar Flasche QUE Clas Kambulim NIVEA MEN 1.49 € 1.59 € 1.79 € FRESH ACTIVE Jawoll MARKTKAUF MARKANT 3.99 1 OBI ladder height 3.05m vs 2.8m at Jawoll 2 Edeka group of companies June 2016 - Germany Analyst and Investor Day Multi= NA alt= 1 37.99 € 54.50 € 64.99 € Jawoll HORNBACH OBI 3.99 € 4.99 € Jawoll BAUHAUS 179 € 229€ Jawoll BAU& GARTEN HERKULES 2 18#19Existing Jawoll store estate CURRENT FOOTPRINT - MARCH 2016 Soltau Distribution Centre 56 stores as of 31/3/16 TYPICAL STORE: 2,300m² + GARDEN CENTRE Breakdown of the existing stores by internal sales area 10 7 18 12 9 < 1,500m² > 1,500m² < 2,000m² > 2,000m² <2,500m² > 2,500m² < 3,000m² > 3,000m² • All Jawoll stores have a garden centre • All Jawoll stores now operate EPOS • Jawoll ideal size is 2,000m² - 2,500m² located in catchments above 20,000 population in towns or urban district centres • Currently predominantly a North West Germany retailer June 2016 - Germany Analyst and Investor Day 19#20- FY17 organic growth plans – 10 stores DC PROPOSED OPENINGS Estate at 31/3/16 ORGANIC ROLLOUT Healthy organic pipeline, with budget of 10 openings in FY17 • 7 expected to be c.2,000m², 3 expected to be c.1,000m² • 5 openings already delivered as of 17 June 2016 • Obtaining planning consents is a constraint on speed of growth so Jawoll is also open to corporate packages FY2017 organic openings 20 June 2016 - Germany Analyst and Investor Day#21Growth supported by Infrastructure Investment 2 1 SOLTAU IS A CONVENIENT DC LOCATION £ 7 Major Autobahn 7 WITH CAPACITY FOR GROWTH Well-located National Distribution Centre . • Soltau lies centrally between Bremen, Hamburg and Hanover. Hamburg port within one hour drive: largest in Germany, third in Europe 30,000m² warehouse capacity plus 4,400m² extension opening in June 2016 with expansion land available to support a further 25,000m². • Investment in wireless DC technology on-going 2 • Temporary overflow space also available for 2017-18 Ausgleichermaßnemen June 2016 - Germany Analyst and Investor Day und Ausfahrt Strafe "Am Kanberg" Lagerhalle 40.90 ниж June 2016 Extension Further Expansion land 800 21 22#22Future initiatives 1 Introduction of Auto-Replenishment from DC as per B&M model, less reliance on Store Manager over time 2 Conversion of pre FY15 estate to B&M layout is on-going 3 On-going incremental increases in Direct Sourcing as store estate (and volumes) grow 4 Further alignment of back-office technology (eg. Hand-held scanners, Stocktaking processes) to exploit EPOS investment June 2016 - Germany Analyst and Investor Day 22 22#23III. Financial performance Jawoll 23#24Margin comparison bm (% of FY16 net sales) Jawoll 34.3% Gross Margin 37.9% Mix effect: Jawoll sells more Non-Grocery items than B&M • Property (5.5%) (18.6%) Store costs (20.6%) • Staff (11.1%) • Marketing (2.5%) • 15.8% Store Contribution 17.3% Indirect Store overheads (1.5%) (4.0%) Transport & Distribution (3.9%) (1.8%) Central overheads (4.1%) . 10.0% Adjusted EBITDA¹ 9.3% 1 Adjusted EBITDA excluding pre-opening costs bm June 2016 - Germany Analyst and Investor Day Relatively modest Store estate Includes one-off investments ahead of growth 24 24#25All Jawoll stores are profitable FY16 Store Contribution for the 50 Jawoll stores open for the full year € 1,750,000 1,500,000 1,250,000 1,000,000 750,000 500,000 250,000 0 T 5 T 10 10 T T 15 20 20 Average store contribution €500k pa Mu. T T 25 25 30 35 40 45 45 50 50 Source: Management Accounts, IFRS Note: includes all 50 stores opened by April 2015, excludes franchised stores bm June 2016 - Germany Analyst and Investor Day 25 25#26Store payback profile (excluding FY16 openings) €m, IFRS, March YE Revenue per store Store contribution Net investment Payback period Payback period incl. WC 2 COMPANY AVERAGE 1 €3.2m €0.5m €0.3m 8 months 22 months 1 Based on all 50 stores opened by April 2015, excludes franchised stores 2 Assumes Working Capital requirement at 31/3/16. Management believe this can be reduced significantly as the store estate is expanded to improve stock-turns on Direct Sourced products from the Far East. bm June 2016 - Germany Analyst and Investor Day 26#27IV. Wrap-up and Q&A Jawoll 27 27#28Key messages 1 The integration of Jawoll into the Group has gone well and EBITDA has grown. 2 The necessary pre-conditions for faster expansion in Germany - in terms of skills, infrastructure and a retail model which can generate attractive returns - are in place. 3 The Jawoll management team is highly experienced and is motivated to deliver growth. Jawoll has a stable and consistent track-record. They have opened 5 stores already in Q1 FY17, versus 1-2 per annum previously. Jawoll is now moving into a phase of faster expansion in Germany with plans this year for 10 stores sourced organically. 5 Given the fragmented and underserved nature of the discount variety retail sector in Germany, Jawoll now has the potential to become a second growth engine for the Group. June 2016 - Germany Analyst and Investor Day 28