30 MARKS AND SPENCER GROUP PLC FINANCIAL STATEMENTS SUMMARY FINANCIALS CONSOLIDATED INCOME STATEMENT 52 weeks ended 28 March 2015 Underlying Non-underlying 52 weeks ended 29 March 2014 Underlying Non-underlying Total m Em Em Em Total Em 10,309.7 Revenue 10,311.4 10,311.4 10,309.7 Operating profit 762.5 (61.2) 701.3 741.9 (47.4) 694.5 Finance income Finance costs 15.5 (116.8) 15.5 (116.8) 20.1 (139.1) 25.0 (139.1) (61.2) Profit before tax Income tax expense Profit for the year 661.2 (124.8) 536.4 600.0 (118.3) 481.7 6.5 622.9 (117.1) 505.8 (42.5) 42.7 580.4 (74.4) 506.0 (54.7) 02 Attributable to: Owners of the parent Non-controlling interests (54.7) 541.2 (4.8) 536.4 486.5 (4.8) 481.7 520.0 (14.2) 505.8 4.8 (4.6) 0.2 524.8 (18.8) 506.0 (54.7) Basic earnings per share Diluted earnings per share 33.1p 32.9p (3.4p) (3.4p) 29.7p 29.5p 32.2p 31.9p 0.3p 0.3p 32.5p 32.2p CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 28 March 2015 m As at 29 March 2014 Em Assets Non-current assets Intangible assets Property, plant and equipment Investment property Investment in joint ventures Other financial assets Retirement benefit asset Trade and other receivables Derivative financial instruments Deferred tax assets 808.4 5,139.9 15.7 12.7 3.0 858.2 5,031.1 15.6 12.2 3.0 460.7 283.3 75.8 1.2 6,741.1 200.7 313.5 40.6 6,534.5 Current assets Inventories Other financial assets Trade and other receivables Derivative financial instruments Cash and cash equivalents 797.8 11.6 321.8 117.9 205.9 1,455.0 8,196.1 845.5 17.7 309.5 13.7 182.1 1,368.5 7,903.0 Total assets Liabilities Current liabilities Trade and other payables Partnership liability to the Marks & Spencer UK Pension Scheme Borrowings and other financial liabilities Derivative financial instruments Provisions Current tax liabilities 1,642.4 71.9 279.4 7.7 1,692.8 71.9 448.7 51.5 44.8 39.6 2,349.3 46.2 64.0 2,111.6 Non-current liabilities Retirement benefit deficit Trade and other payables Partnership Liability to the Marks & Spencer UK Pension Scheme Borrowings and other financial liabilities Derivative financial instruments Provisions Deferred tax liabilities 11.7 319.7 441.0 1,745.9 20.0 32.1 315.3 11.7 334.0 496.8 1,655.1 75.4 31.4 242.6 2,885.7 4,997.3 3,198.8 2,847.0 5,196.3 2,706.7 ... Total liabilities Net assets Equity Issued share capital Share premium account Capital redemption reserve Hedging reserve Other reserve Retained earnings Total shareholders' equity Non-controlling interests in equity Total equity The financial statements were approved by the Board and authorised for issue on 19 May 2015. Marc Bolland Chief Executive Officer Helen Weir Chief Finance Officer 412.0 392.4 2,202.6 64.3 (6,542.2) 6,670.5 3,199.6 (0.8) 3,198.8 408.1 355.5 2,202.6 (41.8) (6,542.2) 6,325.1 2,707.3 (0.6) 2,706.7 SUPPLEMENTARY INFORMATION CONSOLIDATED STATEMENT OF CASH FLOWS 52 weeks ended 28 March 2015 52 weeks ended 29 March 2014 Em Cash flows from operating activities Cash generated from operations Income tax paid Net cash inflow from operating activities 1,349.1 (71.1) 1,278.0 1,175.5 (45.9) 1,129.6 Cash flows from investing activities Proceeds on property disposals Purchase of property, plant and equipment Purchase of intangible assets Reduction/(purchase) of current financial assets Interest received Net cash used in investing activities 35.4 (521.8) (178.0) 6.0 9.3 (649.1) 25.0 (440.1) (201.5) (1.7) 3.4 (614.9) ........... (115.3) (165.7) (10.2) Cash flows from financing activities Interest paid Cash (outflowinflow from borrowings (Repayment)/drawdown of syndicated loan notes Redemption of medium-term notes Decrease in obligations under finance leases Payment of liability to the Marks & Spencer UK Pension Scheme Equity dividends paid Shares issued on exercise of employee share options Purchase of own shares by employee trust Net cash used in financing activities (132.7) 167.5 1541 (400.0) (7.3) (50.3) (273.6) 442 (4.8) (54.4) (280.7) 40.8 (24.2) (614.5) (498.1) Net cash inflow from activities Effects of exchange rate changes Opening net cash Closing net cash 1. Includes interest on the partnership liability to the Marks & Spencer UK Pension Scheme 14.4 (2.3) 175.7 187.8 16.6 (1.6) 160.7 175.7 52 weeks ended 28 March 2015 52 weeks ended 29 March 2014 Em fm (2,463.6) Reconciliation of net cash flow to movement in net debt Opening net debt Net cash inflow from activities (Decrease increase in current financial assets 14.4 (2,614.3) 16.6 (6.0) 7.7 Payment of liability to the Marks & Spencer UK Pension Scheme Equity dividends paid Shares issued on exercise of employee share options Purchase of own shares by employee trust Net cash used in financing activities (54.4) (280.7) 40.8 (24.2) (614.5) (50.3) (273.6) 44.2 (498.1) Net cash inflow from activities Effects of exchange rate changes Opening net cash Closing net cash 1. Includes interest on the partnership liability to the Marks & Spencer UK Pension Scheme. 14.4 (2.3) 175.7 187.8 16.6 (1.6) 160.7 175.7 52 weeks ended 28 March 2015 m 52 weeks ended 29 March 2014 Em Reconciliation of net cash flow to movement in net debt Opening net debt Net cash inflow from activities (Decrease)/increase in current financial assets Decrease in debt financing Exchange and other non-cash movements Movement in net debt Closing net debt (2,463.6) -_ 14.4_ (6.0) 235. 1 (3.1) 240.4 (2,223.2) (2,614.3) 16.6 1.7 136.0 (3.6) 150.7 (2,463.6) IFRS 16-15 (Part Level Submission) The financial statements of M&S are presented in Appendix E. The company's complete annual report, including the notes to the financial statements, is available online. Refer to M&S's financial statements and the accompanying notes to answer the following questions. (a) Under M&S's share-based compensation plan, share options are granted annually to key managers and directors. (Enter amounts in thousands.) (2) How many options were granted during 2015 under the plan? Options granted during 2015 (3) How many options were exercisable at 28 March 2015? Options exerciseable at March 31, 2015 (4) How many options were exercised in 2015, and what was the average price of those exercised? (Round average price to 1 decimal place, e.g. 15.5.) Options exercised in 2015 Average price (5) To what accounts are the proceeds from these option exercises credited? Option exercises credited (6) What was the number of outstanding options at 28 March 2015, and at what average exercise price? (Round average price to 1 decimal place, e.g. 15.5.) 30 MARKS AND SPENCER GROUP PLC FINANCIAL STATEMENTS SUMMARY FINANCIALS CONSOLIDATED INCOME STATEMENT 52 weeks ended 28 March 2015 Underlying Non-underlying 52 weeks ended 29 March 2014 Underlying Non-underlying Total m Em Em Em Total Em 10,309.7 Revenue 10,311.4 10,311.4 10,309.7 Operating profit 762.5 (61.2) 701.3 741.9 (47.4) 694.5 Finance income Finance costs 15.5 (116.8) 15.5 (116.8) 20.1 (139.1) 25.0 (139.1) (61.2) Profit before tax Income tax expense Profit for the year 661.2 (124.8) 536.4 600.0 (118.3) 481.7 6.5 622.9 (117.1) 505.8 (42.5) 42.7 580.4 (74.4) 506.0 (54.7) 02 Attributable to: Owners of the parent Non-controlling interests (54.7) 541.2 (4.8) 536.4 486.5 (4.8) 481.7 520.0 (14.2) 505.8 4.8 (4.6) 0.2 524.8 (18.8) 506.0 (54.7) Basic earnings per share Diluted earnings per share 33.1p 32.9p (3.4p) (3.4p) 29.7p 29.5p 32.2p 31.9p 0.3p 0.3p 32.5p 32.2p CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 28 March 2015 m As at 29 March 2014 Em Assets Non-current assets Intangible assets Property, plant and equipment Investment property Investment in joint ventures Other financial assets Retirement benefit asset Trade and other receivables Derivative financial instruments Deferred tax assets 808.4 5,139.9 15.7 12.7 3.0 858.2 5,031.1 15.6 12.2 3.0 460.7 283.3 75.8 1.2 6,741.1 200.7 313.5 40.6 6,534.5 Current assets Inventories Other financial assets Trade and other receivables Derivative financial instruments Cash and cash equivalents 797.8 11.6 321.8 117.9 205.9 1,455.0 8,196.1 845.5 17.7 309.5 13.7 182.1 1,368.5 7,903.0 Total assets Liabilities Current liabilities Trade and other payables Partnership liability to the Marks & Spencer UK Pension Scheme Borrowings and other financial liabilities Derivative financial instruments Provisions Current tax liabilities 1,642.4 71.9 279.4 7.7 1,692.8 71.9 448.7 51.5 44.8 39.6 2,349.3 46.2 64.0 2,111.6 Non-current liabilities Retirement benefit deficit Trade and other payables Partnership Liability to the Marks & Spencer UK Pension Scheme Borrowings and other financial liabilities Derivative financial instruments Provisions Deferred tax liabilities 11.7 319.7 441.0 1,745.9 20.0 32.1 315.3 11.7 334.0 496.8 1,655.1 75.4 31.4 242.6 2,885.7 4,997.3 3,198.8 2,847.0 5,196.3 2,706.7 ... Total liabilities Net assets Equity Issued share capital Share premium account Capital redemption reserve Hedging reserve Other reserve Retained earnings Total shareholders' equity Non-controlling interests in equity Total equity The financial statements were approved by the Board and authorised for issue on 19 May 2015. Marc Bolland Chief Executive Officer Helen Weir Chief Finance Officer 412.0 392.4 2,202.6 64.3 (6,542.2) 6,670.5 3,199.6 (0.8) 3,198.8 408.1 355.5 2,202.6 (41.8) (6,542.2) 6,325.1 2,707.3 (0.6) 2,706.7 SUPPLEMENTARY INFORMATION CONSOLIDATED STATEMENT OF CASH FLOWS 52 weeks ended 28 March 2015 52 weeks ended 29 March 2014 Em Cash flows from operating activities Cash generated from operations Income tax paid Net cash inflow from operating activities 1,349.1 (71.1) 1,278.0 1,175.5 (45.9) 1,129.6 Cash flows from investing activities Proceeds on property disposals Purchase of property, plant and equipment Purchase of intangible assets Reduction/(purchase) of current financial assets Interest received Net cash used in investing activities 35.4 (521.8) (178.0) 6.0 9.3 (649.1) 25.0 (440.1) (201.5) (1.7) 3.4 (614.9) ........... (115.3) (165.7) (10.2) Cash flows from financing activities Interest paid Cash (outflowinflow from borrowings (Repayment)/drawdown of syndicated loan notes Redemption of medium-term notes Decrease in obligations under finance leases Payment of liability to the Marks & Spencer UK Pension Scheme Equity dividends paid Shares issued on exercise of employee share options Purchase of own shares by employee trust Net cash used in financing activities (132.7) 167.5 1541 (400.0) (7.3) (50.3) (273.6) 442 (4.8) (54.4) (280.7) 40.8 (24.2) (614.5) (498.1) Net cash inflow from activities Effects of exchange rate changes Opening net cash Closing net cash 1. Includes interest on the partnership liability to the Marks & Spencer UK Pension Scheme 14.4 (2.3) 175.7 187.8 16.6 (1.6) 160.7 175.7 52 weeks ended 28 March 2015 52 weeks ended 29 March 2014 Em fm (2,463.6) Reconciliation of net cash flow to movement in net debt Opening net debt Net cash inflow from activities (Decrease increase in current financial assets 14.4 (2,614.3) 16.6 (6.0) 7.7 Payment of liability to the Marks & Spencer UK Pension Scheme Equity dividends paid Shares issued on exercise of employee share options Purchase of own shares by employee trust Net cash used in financing activities (54.4) (280.7) 40.8 (24.2) (614.5) (50.3) (273.6) 44.2 (498.1) Net cash inflow from activities Effects of exchange rate changes Opening net cash Closing net cash 1. Includes interest on the partnership liability to the Marks & Spencer UK Pension Scheme. 14.4 (2.3) 175.7 187.8 16.6 (1.6) 160.7 175.7 52 weeks ended 28 March 2015 m 52 weeks ended 29 March 2014 Em Reconciliation of net cash flow to movement in net debt Opening net debt Net cash inflow from activities (Decrease)/increase in current financial assets Decrease in debt financing Exchange and other non-cash movements Movement in net debt Closing net debt (2,463.6) -_ 14.4_ (6.0) 235. 1 (3.1) 240.4 (2,223.2) (2,614.3) 16.6 1.7 136.0 (3.6) 150.7 (2,463.6) IFRS 16-15 (Part Level Submission) The financial statements of M&S are presented in Appendix E. The company's complete annual report, including the notes to the financial statements, is available online. Refer to M&S's financial statements and the accompanying notes to answer the following questions. (a) Under M&S's share-based compensation plan, share options are granted annually to key managers and directors. (Enter amounts in thousands.) (2) How many options were granted during 2015 under the plan? Options granted during 2015 (3) How many options were exercisable at 28 March 2015? Options exerciseable at March 31, 2015 (4) How many options were exercised in 2015, and what was the average price of those exercised? (Round average price to 1 decimal place, e.g. 15.5.) Options exercised in 2015 Average price (5) To what accounts are the proceeds from these option exercises credited? Option exercises credited (6) What was the number of outstanding options at 28 March 2015, and at what average exercise price? (Round average price to 1 decimal place, e.g. 15.5.)