YOUR M & S PENSION SAVING PLAN SCHEME ACCOUNT FOR THE YEAR ENDED 5 APRIL REGISTERED NUMBER: RX

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1 YOUR M & S PENSION SAVING SCHEME ACCOUNT FOR THE YEAR ENDED. REGISTERED NUMBER: RX

2 Year End CONTENTS. CONTENTS Introduction. 3 Membership Information. 4 Investment Funds. 5 Fund Account For the Year Ended 5 April Net Asset Statement. 7 Notes to the Fund Account. 8

3 Year End INTRODUCTION. Welcome to your end of year account. If you have any questions regarding this report please contact: PRODUCED BY Governance Reporting Team ADDRESS Governance.reporting@landg.com GROUP AND EMPLOYER DETAILS. GROUP NAME YOUR M & S PENSION SAVING GROUP REFERENCE GF EMPLOYER DETAILS MARKS AND SPENCER GROUP PLC MARKS & SPENCER OUTLET LIMITED MARKS AND SPENCER SHARED SERVICES LIMITED MARKS AND SPENCER SIMPLY FOODS LIMITED MARKS AND SPENCER PLC

4 Year End MEMBERSHIP INFORMATION. MEMBERS AT 06/04/ ,870 ACTIVE MEMBERS NUMBER DEFERRED MEMBERS NUMBER AT START OF PERIOD 53,321 AT START OF PERIOD 13,549 ADD NEW MEMBERS 9,655 ADD NEW DEFERRED MEMBERS 22 ADD REJOINERS 1 LESS REJOINERS 1 LESS DEFERRED WITH VALUE 8,821 ADD DEFERRED WITH VALUE 8,821 LESS DEATH IN SERVICE 51 LESS SURRENDERED 3 LESS RETIREMENT 36 LESS TRANSFERRED 16 LESS DEATH AFTER LEAVING SERVICE LESS SURRENDERED AFTER LEAVING SERVICE LESS RETIREMENT AFTER LEAVING SERVICE LESS TRANSFERRED AFTER LEAVING SERVICE 9 1, AT END OF PERIOD 54,050 AT END OF PERIOD 20,257 MEMBERS AT 05/04/ ,307 Notes: Members whose total benefits are in income drawdown are included in the above figures as deferred members. Members who have taken a short service refund are included in the above figures as surrendered. Deceased members will continue to show as active or deferred until the death claim has been fully processed. Employees who re-join the scheme will have their original account re-activated, where possible. Adjustments to the opening membership figures reflect, for active members, the treatment of new joiners as stated above. For deferred members, adjustment relates to late notification of member movements.

5 Year End INVESTMENT FUNDS. Unless otherwise specified, the below returns and benchmarks are for the period up to 5 April INTERNAL FUNDS ACTIVE. INVESTMENT FUND NAME L&G PROPERTY 3- PEN RETURN 1 YEAR % 1 YEAR PERFORMANCE DEVIATION % RETURN 3 YEARS % 3 YEAR PERFORMANCE DEVIATION % L&G CASH 3-PEN EXTERNAL FUNDS. INVESTMENT FUND NAME L&G HSBC LIFE AMANAH 3-PEN RETURN 1 YEAR % 1 YEAR PERFORMANCE DEVIATION % RETURN 3 YEARS % 3 YEAR PERFORMANCE DEVIATION % n/a n/a BLENDS. BLEND NAME BLENDS COMMENCEMENT PRICING DATE RETURN 1 YEAR % RETURN 3 YEARS % LONG TERM GROWTH 17/07/ BALANCED GROWTH 17/07/ BALANCED GROWTH /08/ MIXED GROWTH /07/ MIXED BONDS 17/07/ PROPERTY 17/07/ SOCIALLY RESPONSIBLE 17/07/ GLOBAL EQUITY 30/08/ EMERGING MARKETS 01/08/ INDEX LINKED GILTS 24/09/ LONG TERM GROWTH /07/ CORPORATE BONDS 17/07/

6 Year End FUND ACCOUNT FOR THE YEAR ENDED. CONTRIBUTIONS AND BENEFITS YOUR M&S SAVINGS Note 000 s 000 s EMPLOYER CONTRIBUTIONS 4 270,811 96,900 MEMBER CONTRIBUTIONS 4 30,983 10, , ,129 TRANSFERS IN 5 309,030 3,239 OTHER INCOME 6 3,911 3, , ,279 BENEFITS PAYABLE 7 31,690 13,937 PAYMENTS TO AND ON ACCOUNT OF LEAVERS TRANSFERS TO OTHER SCHEMES 9 48,853 9,362 ADMINISTRATIVE EXPENSES 10 2, ,757 24,324 NET ADDITIONS FROM DEALINGS WITH MEMBERS 530,978 89,955 RETURNS ON INVESTMENTS CHANGE IN MARKET VALUE OF INVESTMENTS 11 22,671 15,299 NET INCREASE IN FUND DURING THE YEAR 553, ,254 NET ASSETS OF THE SCHEME AS AT THE START OF THE YEAR 1,798, ,525 AS AT THE END OF THE YEAR 2,351, ,779

7 Year End NET ASSET STATEMENT. NOTE 000 s YOUR M&S SAVINGS 000 s INVESTMENT ASSETS (POOLED INVESTMENT VEHICLES) 11 2,343, ,355 CURRENT ASSETS 13 9,357 7,106 CURRENT LIABILITIES 14 (967) (662) NET ASSETS OF THE SCHEME AT 2,351, ,779 The accounts summarise the transactions of the Scheme and deal with the net assets at the disposal of the Trustees. They do not take account of obligations to pay pensions and benefits which fall due after the end of the Scheme year.

8 Year End NOTES TO THE FUND ACCOUNT. 1. GENERAL INFORMATION. The Scheme is a Registered Pension Scheme under the Finance Act 2004 (Registered Pension Scheme number RX). It is governed by a Trust Deed and Rules dated 7 October 2011, by the Deeds of Participation of each Participating Employer, and by any amending documentation. The Scheme offers defined contribution benefits to: the current and former workforces of the Participating Employers (see list of Participating Employers in Appendix 1 of the Legal & General WorkSave Mastertrust Annual Report); Members who have been transferred to the Scheme by the trustees of another pension scheme; and Members who have transferred directly from another scheme. 2. STATEMENT OF COMPLIANCE. The individual financial statements of the Legal and General WorkSave Mastertrust have been prepared in accordance with the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996, Financial Reporting Standard (FRS) 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland issued by the Financial Reporting Council ( FRS 102 ) and the guidance set out in the Statement of Recommended Practice Financial Reports of Pension Schemes (Revised November 2014) ( the SORP ). In adopting FRS 102, the Trustees have been early to adopt the provisions of Amendments to FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland Fair value hierarchy disclosures (March 2016). 3. ACCOUNTING POLICIES. The following accounting policies have been adopted consistently: Currency The Scheme s functional currency and presentational currency is pounds sterling (GBP). Pension contributions Employer and member contributions remitted by the Participant Employers are accounted for on an accruals basis based on the pay period to which they relate. Refunds for members who opt out of the Scheme are accounted for in the period that the member gives notification of their intention to opt out. Investment of pension contributions Pension contributions are invested on the next available valuation date after receipt, except for contributions received and held in cash within a member s automatic enrolment opt out window. Member benefits Benefits payable to members are accounted for on an accruals basis from the date they are claimed.

9 Year End Transfers to and from other schemes Transfer values represent the capital sums either receivable in respect of members from other pension schemes of previous employers or payable to the pension schemes of new employers for members who have left the Scheme. They are accounted for on an accruals basis on the date the trustees of the receiving Scheme accept the liability. The liability normally transfers when a payment is made, unless the trustees of the receiving scheme have agreed to accept the liability in advance of receiving the funds. Group transfers, where the Trustees have agreed to accept the liability prior to the receipt, are accounted for in accordance with the agreement. Charges Administrative charges are accounted for on a period end basis and represent the amount deducted by the period end date. Fund Management Charges are included in the unit price and vary from fund to fund. Valuation of investments Investment assets and liabilities are included in the financial statements at fair value. Investments are included in the net assets statement based on the unit price at the period end date, as provided by LGAS. All funds are single priced. The change in market value of investments during the year comprises all increases and decreases in the market value of investments held at any time during the year, including profits and losses realised on sales of investments and unrealised changes in market value. In the case of pooled investment vehicles which are accumulation funds, where income is reinvested within the fund without issue of further units, change in market value also includes such income. Transaction costs are included in the cost of purchases and sale proceeds. Transaction costs include costs charged directly to the Scheme such as fees, commissions, stamp duty and other fees. Other investment management expenses are accounted for on an accruals basis and shown separately within investment returns. 4. CONTRIBUTIONS. EMPLOYER 270,811 96,900 MEMBERS 30,983 10,229 TOTAL 310, ,129

10 Year End TRANSFERS IN. INDIVIDUAL TRANSFERS IN FROM OTHER SCHEMES 26,497 3,239 GROUP TRANSFERS IN FROM OTHER SCHEMES 282,533 - TOTAL 309,030 3,239 In the accounting period 2017/18 transfers into the Scheme (Legal & General WorkSave Mastertrust) 82.6m were received as cash value and 226.4m as in-specie transfers. 6. OTHER INCOME. LIFE ASSURANCE BENEFITS 3,911 3,911 TOTAL 3,911 3, BENEFITS PAYABLE. LUMP SUM DEATH BENEFITS 2, PURCHASE OF ANNUITIES 2, LIFE ASSURANCE BENEFITS 3,911 3,911 INCOME DRAWDOWN PAYMENTS 11,214 2,362 PARTIAL UNCRYSTALISED FUNDS PENSION LUMP SUMS 1, CASH LUMP SUMS PAID TO MEMBERS 9,848 5,185 TRIVIALITY PAYMENTS (AT RETIREMENT) TOTAL 31,690 13,937 Life Assurance Benefits are the value of benefit received from a Group Life Policy for members and for life assurance only members.

11 Year End PAYMENTS TO AND ON ACCOUNT OF LEAVERS. SHORT SERVICE REFUNDS ON LEAVING SERVICE TOTAL TRANSFERS TO OTHER SCHEMES. INDIVIDUAL TRANSFERS TO OTHER SCHEMES 48,853 9,362 TOTAL 48,853 9, ADMINISTRATIVE EXPENSES. ADMINISTRATION CHARGES 2, TOTAL 2, Administrative charges, which vary between Employers, are charged by Legal & General Assurance Society Limited, against the value of each pension pot and are payable by the member. Charges are deducted from members pots by the encashment of units. These are calculated daily and deducted on the monthly anniversary of each member s pot. The charges shown here are those that have been deducted from members pots in the year ended 5 April Some Employers may choose to reduce the Annual Management Charge by paying fees direct to LGAS Limited which are not included above.

12 Year End INVESTMENTS. Investments purchased by the Scheme are allocated to provide benefits to the members on whose behalf the corresponding contributions were paid. Accordingly, the assets identified as designated to members do not form a common pool of assets available for members generally. All investments are provided by the WorkSave Pension Trust Insurance Policy (the 'Policy') by LGAS and are held as pooled investments. The crediting of units to the Policy operates only as a means of calculating benefits. All units under the Policy are owned by LGAS. Members each receive an annual statement confirming the contributions paid on their behalf and the value of their money purchase rights. There are no employer-related investments. The movements in investments during the year were: MARKET VALUE AT THE START OF THE YEAR 1,793, ,525 PURCHASES AT COST 611, ,279 SALES PROCEEDS (84,120) (24,324) CHANGE IN MARKET VALUE OF INVESTMENTS 22,671 15,299 MARKET VALUE AT THE END OF THE YEAR 2,343, ,779 Purchases represent the cash value of contributions received, and sales represent the cash value of units disinvested. Sales and purchases of units in funds which relate to switching when members change their fund strategy are not included in these figures. The market value of investments (pooled investment vehicles) by type can be analysed as follows: YOUR M&S SAVINGS EQUITIES 647,019 14,210 BONDS 94,051 32,896 PROPERTY 9,845 6,410 DIVERSIFIED GROWTH 1,533, ,299 CASH 58,715 29,520 TOTAL 2,343, ,335

13 Year End All of above assets are designated to members. The companies operating the pooled funds are registered in the United Kingdom. 12. FAIR VALUE OF INVESTMENTS. The fair value of financial instruments has been determined using the following fair value hierarchy: Level 1 The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date. Level 2 Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly. Level 3 Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability. LEVEL INVESTMENT ASSETS S S S 2018 TOTAL 000 S POOLED INVESTMENT VEHICLES - 2,343,351-2,343,351 TOTAL - 2,343,351-2,343,351 POOLED INVESTMENT VEHICLES - 679, ,335 TOTAL - 679, , CURRENT ASSETS. CONTRIBUTIONS DUE IN RESPECT OF EMPLOYER MEMBER 7,309 1,456 5,662 1,081 LIFE ASSURANCE MONIES TO BE RECEVIED - - BANK BALANCES TOTAL 9,357 7,106 All contributions due to the Scheme relate to the month of March 2018 and were paid in full to the Scheme within the timescale required by the payment schedules currently in force.

14 Year End CURRENT LIABILITIES. UNPAID BENEFITS IN RESPECT OF INCOME DRAWDOWN PAYMENTS LIFE ASSURANCE REFUNDS ON MEMBERS LEAVING SERVICE 1 - TAX FREE CASH DUE TO MEMBERS LUMP SUM DEATH PAYMENTS TOTAL Tax is owed to HMRC in respect of Short Service Refunds to members. All the balances are designated to members.

15 Year End