I n f o r m a t i o n Booklet

Transcription

1 D i p l o m a i n Corporate Finance C o r p o r a t e F inance Strategy & Ad vi c e I n f o r m a t i o n Booklet Date of exam Monday 20 June 2016 Part 1: 1:00 pm 1:55 pm Information Booklet & Examination Paper Part 2: 2:00 pm 5:00 pm Answer Book Notes to candidates Time allowed: 55 minutes Part 1: Candidates will be provided with an Information Booklet and the examination question paper. Candidates have one hour in which to review the information booklet and questions. During this time, candidates may annotate the information book. The examination has been prepared on the assumption that candidates will not have any detailed knowledge of the type of organisation to which it refers. No additional merit will be accorded to those candidates displaying such knowledge. Part 2: The Answer Book will be distributed at 1.55 pm and the candidates should open and begin writing in the answer book when instructed. Candidates should distinguish clearly between formal answers (including appendices) and any working papers. Chartered Institute for Securities & Investment 2016 ICAEW 2016 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, or any information storage or retrieval system without prior permission from the Chartered Institute for Securities & Investment. Please turn over when instructed 1 of 150

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3 Table of Contents Information Book Pages Contents 3 Sports Direct Capital IQ spreadsheets: Financials 4 28 Sports Direct Capital IQ spreadsheets: Comparable Company Information Sports Direct Capital IQ spreadsheets: Estimates Sports Direct Annual Report 2015 (Pages 1 36) Guardian Newspaper Article Sample Share Prices JD Sports Capital IQ spreadsheets: Financials JD Sports Capital IQ spreadsheets: Comparable Company Information JD Sports Capital IQ spreadsheets: Estimates JD Sports Annual Report 2015 (extracts) Guardian Newspaper Article Sample Share Prices of 150

4 Sports Direct Capital IQ spreadsheets: Financials Data Provided by Historical Equity Pricing Data supplied by 4 of 150

5 Sports Direct International plc (LSE:SPD) > Financials > Key Stats In Millions of the trading currency, except per share items. Currency: Trading Currency Conversion: Historical Order: Latest on Right Units: S&P Capital IQ (Default) Decimals: Capital IQ (Default) Dilution: Basic Key Financials¹ For the Fiscal Period Ending Apr A Apr A Apr A Apr A LTM² Oct A Apr E Apr E Apr E Currency GBP GBP GBP GBP GBP GBP GBP GBP Total Revenue 1, , , , , , , , Growth Over Prior Year 14.8% 19.1% 23.8% 4.7% 1.4% (0.36%) 6.40% 3.61% Gross Profit , , , Margin % 40.5% 40.9% 42.7% 43.8% 44.3% EBITDA Margin % 11.6% 12.1% 11.7% 13.2% 13.5% 13.40% 13.20% 13.31% EBIT Margin % 8.2% 9.7% 9.4% 10.5% 10.5% Earnings from Cont. Ops Margin % 5.8% 6.9% 6.6% 8.5% 9.7% Net Income Margin % 5.8% 6.9% 6.7% 8.5% 9.6% Diluted EPS Excl. Extra Items³ Growth Over Prior Year 19.9% 46.1% 19.7% 33.6% 43.3% (3.02%) 2.17% 6.86% Same Store Sales Growth % 0.7% 10.6% 10.5% 7.4% NA Currency GBP GBP GBP GBP GBP GBP GBP GBP Exchange Rate Conversion Method H H H H H S S S ¹All results are taken from the most recently filed statement for each period. When there has been more than one, earlier filings can be viewed on the individual statement pages. ²Growth rates for the LTM period are calculated against the LTM period ending before. ³All forward period figures are consensus mean estimates provided by the brokers and may not be on a comparable basis as financials. Growth rates for forward periods are calculated against prior period estimates or actual pro forma results as disclosed on the Estimates Consensus page. Growth Rates are calculated in originally reported currency only and will not reflect any currency conversion selected above. 5 of 150

6 Latest Capitalization (Millions of GBP) Currency GBP Share Price 3.48 Shares Out Market Capitalization 2, Cash & Short Term Investments Total Debt Pref. Equity - + Total Minority Interest (1.2) = Total Enterprise Value (TEV) 2,094.7 Book Value of Common Equity 1, Pref. Equity - + Total Minority Interest (1.2) + Total Debt = Total Capital 1,474.0 **For companies that have multiple share classes that publicly trade, we are incorporating the different prices to calculate our company level market capitalization. Please click on the value to see the detailed calculation. Prices shown on this page are the close price of the company s primary stock class. Shares shown on this page are total company as-reported share values. 6 of 150

7 Total Liability includes Total Debt, Minority Interest and Pref. Equity. Net Liability includes Total Liability, net of Cash and Short Term Investments. TEV includes Market Cap and Net Liability. Total Capital includes Common Equity and Total Liability. Valuation Multiples based on Current Capitalization For the Fiscal Period Ending Apr A LTM Oct A Apr E Apr E Apr E TEV/Total Revenue 0.8x 0.7x 0.74x 0.70x 0.67x TEV/EBITDA 5.7x 5.4x 5.55x 5.29x 5.07x TEV/EBIT 7.1x 6.9x P/Diluted EPS Before Extra 8.9x 8.0x 9.62x 9.41x 8.81x P/BV 1.8x 1.6x Price/Tang BV 2.3x 1.9x of 150

8 Sports Direct International plc (LSE:SPD) > Financials > Income Statement In Millions of the reported currency, except per share items. Template: Standard Restatement: Latest Filings Period Type: Annual Order: Latest on Right Currency: Reported Currency Conversion: Historical Units: S&P Capital IQ (Defau Decimals: Capital IQ (Default) Income Statement For the Fiscal Period Ending Reclassified Apr Reclassified Apr Reclassified Apr Reclassified Apr Apr LTM Oct Currency GBP GBP GBP GBP GBP GBP Revenue 1, , , , , ,833.3 Other Revenue Total Revenue 1, , , , , ,833.3 Cost Of Goods Sold , , , , ,579.2 Gross Profit , , ,254.1 Selling General & Admin Exp R & D Exp Depreciation & Amort Amort. of Goodwill and Intangibles Other Operating Expense/(Income) (5.3) (5.3) (7.2) (8.6) (8.3) (8.4) Other Operating Exp., Total Operating Income Interest Expense (4.7) (6.0) (7.2) (8.1) (6.8) (3.9) Interest and Invest. Income Net Interest Exp. (4.2) (5.4) (4.6) (0.2) Income/(Loss) from Affiliates Currency Exchange Gains (Loss) (1.7) 3.6 (2.0) (11.2) Other Non-Operating Inc. (Exp.) EBT Excl. Unusual Items of 150

9 Impairment of Goodwill (0.2) (5.3) (37.8) Gain (Loss) On Sale Of Invest. (9.5) (5.8) Asset Writedown (5.5) (8.0) (8.0) Legal Settlements (3.1) Other Unusual Items EBT Incl. Unusual Items Income Tax Expense Earnings from Cont. Ops Earnings of Discontinued Ops Extraord. Item & Account. Change Net Income to Company Minority Int. in Earnings (0.1) 0.6 (1.0) (2.3) Net Income Pref. Dividends and Other Adj NI to Common Incl Extra Items NI to Common Excl. Extra Items Per Share Items Basic EPS Basic EPS Excl. Extra Items Weighted Avg. Basic Shares Out Diluted EPS Diluted EPS Excl. Extra Items Weighted Avg. Diluted Shares Out Normalized Basic EPS Normalized Diluted EPS Dividends per Share NA NA NA NA NA NA Shares per Depository Receipt of 150

10 Supplemental Items EBITDA EBITA EBIT EBITDAR NA Effective Tax Rate % 29.9% 30.3% 26.8% 25.0% 23.0% 22.1% Total Current Taxes Total Deferred Taxes (6.8) (7.3) (5.2) 2.6 (7.1) (7.1) Normalized Net Income Non-Cash Pension Expense Filing Date Aug Jul Aug Jul Jul Dec Restatement Type RC RC RC RC O O Calculation Type REP REP REP REP REP LTM Supplemental Operating Expense Items Net Rental Exp NA Imputed Oper. Lease Interest Exp Imputed Oper. Lease Depreciation Stock-Based Comp., SG&A Exp Stock-Based Comp., Unallocated Stock-Based Comp., Total Note: For multiple class companies, per share items are primary class equivalent, and for foreign companies listed as primary ADRs, per share items are ADR-equivalent. 10 of 150

11 Sports Direct International plc (LSE:SPD) > Financials > Balance Sheet In Millions of the reported currency, except per share items. Template: Standard Restatement: Latest Filings Period Type: Annual Order: Latest on Right Currency: Reported Currency Conversion: Historical Units: S&P Capital IQ (Defau Decimals: Capital IQ (Default) Balance Sheet Balance Sheet as of: Restated Apr Apr Apr Apr Apr Oct Currency GBP GBP GBP GBP GBP GBP ASSETS Cash And Equivalents Total Cash & ST Investments Accounts Receivable Other Receivables Total Receivables Inventory Prepaid Exp Other Current Assets Total Current Assets ,071.9 Gross Property, Plant & Equipment Accumulated Depreciation (338.2) (374.2) (412.7) (461.2) (501.6) - Net Property, Plant & Equipment Long-term Investments Goodwill Other Intangibles Deferred Tax Assets, LT Other Long-Term Assets Total Assets , , , , ,036.4 LIABILITIES Accounts Payable Accrued Exp Short-term Borrowings Curr. Port. of LT Debt Curr. Port. of Cap. Leases Curr. Income Taxes Payable Other Current Liabilities Total Current Liabilities of 150

12 Long-Term Debt Capital Leases Pension & Other Post-Retire. Benefits Def. Tax Liability, Non-Curr Other Non-Current Liabilities Total Liabilities Common Stock Additional Paid In Capital Retained Earnings , ,380.0 Treasury Stock (91.2) (113.5) (120.6) (69.5) (69.5) (90.0) Comprehensive Inc. and Other (957.4) (952.9) (924.9) (979.7) (886.1) (937.0) Total Common Equity , ,291.5 Minority Interest 0.4 (0.5) (0.3) (3.5) (2.8) (1.2) Total Equity , ,290.3 Total Liabilities And Equity , , , , ,036.4 Supplemental Items Total Shares Out. on Filing Date Total Shares Out. on Balance Sheet Date Book Value/Share Tangible Book Value ,074.9 Tangible Book Value/Share Total Debt Net Debt Debt Equiv. of Unfunded Proj. Benefit Obligation NA Debt Equivalent Oper. Leases ,107.9 NA Total Minority Interest 0.4 (0.5) (0.3) (3.5) (2.8) (1.2) Equity Method Investments Inventory Method FIFO FIFO FIFO Avg Cost Avg Cost NA Raw Materials Inventory NA Work in Progress Inventory NA NA NA NA Finished Goods Inventory NA Land NA Machinery NA Leasehold Improvements Full Time Employees 18,210 19,000 24,000 28,000 27,000 NA Accum. Allowance for Doubtful Accts NA Filing Date Aug Jul Aug Jul Jul Dec Restatement Type RS NC NC NC O O Calculation Type REP REP REP REP REP REP Note: For multiple class companies, total share counts are primary class equivalent, and for foreign companies listed as primary ADRs, total share counts are ADR-equivalent. 12 of 150

13 Sports Direct International plc (LSE:SPD) > Financials > Cash Flow In Millions of the reported currency, except per share items. Template: Standard Restatement: Latest Filings Period Type: Annual Order: Latest on Right Currency: Reported Currency Conversion: Historical Units: S&P Capital IQ (Defau Decimals: Capital IQ (Default) Cash Flow For the Fiscal Period Ending Reclassified Apr Apr Apr Apr Apr LTM Oct Currency GBP GBP GBP GBP GBP GBP Net Income Depreciation & Amort Amort. of Goodwill and Intangibles Depreciation & Amort., Total (Gain) Loss From Sale Of Assets (0.6) (12.6) (Gain) Loss On Sale Of Invest Asset Writedown & Restructuring Costs (Income) Loss on Equity Invest. 0.0 (0.6) (1.3) (2.3) (3.0) (2.9) Stock-Based Compensation Other Operating Activities (22.3) (89.8) Change in Acc. Receivable (6.6) (18.2) (66.4) (45.4) Change In Inventories 0.9 (80.2) (102.0) (52.5) Change in Acc. Payable (6.3) 25.6 (19.0) (34.4) (52.3) (35.7) Change in Other Net Operating Assets Cash from Ops Capital Expenditure (20.5) (129.4) (48.2) (67.3) (97.3) (162.9) Sale of Property, Plant, and Equipment Cash Acquisitions - (26.2) (46.9) (15.4) (3.8) (3.7) Divestitures Sale (Purchase) of Intangible assets (1.5) (2.9) (1.7) (1.8) (2.9) (3.0) Invest. in Marketable & Equity Securt. - (0.5) (0.1) (14.1) Net (Inc.) Dec. in Loans Originated/Sold Other Investing Activities Cash from Investing (14.0) (155.8) (94.3) (96.1) (77.9) (74.0) 13 of 150

14 Short Term Debt Issued Long-Term Debt Issued Total Debt Issued Short Term Debt Repaid Long-Term Debt Repaid - (143.3) (323.9) (348.5) (347.0) - Total Debt Repaid - (143.3) (323.9) (348.5) (347.0) (299.5) Issuance of Common Stock Repurchase of Common Stock - - (21.7) Total Dividends Paid Special Dividend Paid Other Financing Activities (7.2) (6.0) (7.2) (19.8) (6.8) (3.9) Cash from Financing (67.3) (226.9) (110.6) Net Change in Cash (67.8) 59.4 Supplemental Items Cash Interest Paid Cash Taxes Paid Levered Free Cash Flow (0.2) (1.3) 50.1 Unlevered Free Cash Flow Change in Net Working Capital (50.3) Net Debt Issued (47.5) (220.0) (106.7) Filing Date Aug Jul Aug Jul Jul Dec Restatement Type RC NC NC NC O O Calculation Type REP REP REP REP REP LTM 14 of 150

15 Sports Direct International plc (LSE:SPD) > Financials > Multiples View: Data Frequency: Quarterly Order: Latest on Right Decimals: Capital IQ (Default) Dilution: Basic Multiples Detail In Millions of the reported currency, except per share items. For Quarter Ending Sep Dec Mar Jun Sep Dec Mar TEV/LTM Total Revenue Average 1.67x 1.48x 1.52x 1.47x 1.64x 1.43x 0.87x High 2.01x 1.61x 1.68x 1.62x 1.73x 1.65x 1.17x Low 1.43x 1.33x 1.36x 1.35x 1.55x 1.19x 0.74x Close 1.43x 1.57x 1.36x 1.59x 1.61x 1.22x 0.74x TEV/NTM Total Revenues Average x 1.44x 1.37x 1.54x 1.33x 0.84x High x 1.57x 1.50x 1.63x 1.55x 1.16x Low x 1.29x 1.25x 1.44x 1.12x 0.72x Close x 1.29x 1.48x 1.52x 1.16x 0.72x TEV/LTM EBITDA Average 14.15x 12.40x 12.67x 12.21x 12.56x 10.70x 6.39x High 17.24x 13.54x 13.98x 13.46x 13.56x 12.43x 8.63x Low 12.05x 11.23x 11.31x 11.23x 11.73x 8.74x 5.44x Close 12.05x 13.11x 11.31x 13.24x 12.14x 8.99x 5.44x TEV/NTM EBITDA Average x 10.69x 10.02x 10.91x 9.17x 6.06x High x 11.68x 10.96x 11.53x 10.78x 7.83x Low x 9.60x 9.21x 10.29x 7.61x 5.41x Close x 9.60x 10.78x 10.53x 7.83x 5.42x TEV/LTM EBIT Average 17.64x 15.49x 15.93x 15.35x 15.74x 13.43x 8.16x High 21.43x 16.89x 17.58x 16.92x 17.05x 15.56x 11.01x Low 15.03x 14.01x 14.21x 14.11x 14.68x 11.16x 6.95x Close 15.03x 16.48x 14.21x 16.65x 15.19x 11.48x 6.95x P/LTM EPS Average 24.23x 21.88x 22.59x 21.72x 20.59x 16.84x 9.40x High 28.43x 23.96x 25.03x 24.06x 24.24x 19.88x 12.72x Low 21.18x 19.66x 20.04x 19.89x 18.88x 12.89x 7.99x Close 21.18x 23.40x 20.04x 23.64x 19.41x 13.26x 7.99x P/NTM EPS Average x 17.46x 16.06x 17.82x 15.02x 10.51x High x 19.34x 17.52x 18.95x 17.60x 13.21x Low x 15.46x 14.70x 16.71x 12.84x 9.37x 15 of 150

16 Close x 15.46x 17.22x 17.19x 13.21x 9.51x P/LTM Normalized EPS Average 28.43x 25.98x 28.43x 27.35x 25.30x 20.28x 10.51x High 33.87x 29.75x 31.51x 30.28x 30.51x 24.29x 14.21x Low 24.75x 22.97x 25.23x 25.04x 23.07x 14.41x 8.94x Close 24.75x 29.46x 25.23x 29.77x 23.71x 14.82x 8.94x P/BV Average 5.08x 4.48x 4.13x 3.97x 4.02x 3.35x 1.88x High 5.86x 5.05x 4.58x 4.40x 4.43x 3.94x 2.54x Low 4.46x 3.92x 3.67x 3.64x 3.75x 2.57x 1.60x Close 4.46x 4.28x 3.67x 4.33x 3.85x 2.65x 1.60x P/Tangible BV Average 7.46x 6.42x 5.58x 5.37x 5.20x 4.24x 2.26x High 9.00x 7.32x 6.18x 5.94x 5.99x 5.05x 3.05x Low 6.47x 5.30x 4.95x 4.91x 4.80x 3.09x 1.92x Close 6.47x 5.78x 4.95x 5.84x 4.93x 3.18x 1.92x TEV/LTM Unlevered FCF Average 43.06x 39.26x NM NM NM 65.45x 46.85x High 47.02x 43.15x NM NM NM 67.67x 63.24x Low 38.40x 35.78x NM NM NM 64.10x 39.90x Close 38.40x NM NM NM NM 65.91x 39.90x Market Cap/LTM Levered FCF Average 43.17x 39.17x NM NM NM 68.23x 48.73x High 47.33x 43.26x NM NM NM 70.56x 65.91x Low 38.25x 35.50x NM NM NM 66.81x 41.44x Close 38.25x NM NM NM NM 68.71x 41.44x Average multiples are calculated using positive close values on each trading day within the frequency periods selected. Negative values are excluded from the calculation. When the Multiples are not meaningful, due to negative values, then they will not be displayed in the chart. When a mismatch exists between the currency of the equity listing and the reported financial results such results are translated into the currency of the listing at the exchange rate applicable on the financial period end date. Historical Equity Pricing Data supplied by 16 of 150

17 Sports Direct International plc (LSE:SPD) > Financials > Historical Capitalization In Millions of the trading currency, except per share items. Frequency: Quarterly Order: Latest on Right Currency: Trading Currency Conversion: Historical Units: S&P Capital IQ (Default) Decimals: Capital IQ (Default) Dilution: Basic Historical Capitalization Balance Sheet as of: Apr Oct Apr Oct Apr Oct Pricing as of* Jul Dec Aug Dec Jul Dec Currency GBP GBP GBP GBP GBP GBP Capitalization Detail Share Price Shares Out Market Capitalization 3, , , , , , Cash & Short Term Investments Total Debt Pref. Equity Total Minority Interest (0.3) (12.3) (3.5) (2.9) (2.8) (1.2) = Total Enterprise Value (TEV) 3, , , , , ,553.0 Book Value of Common Equity , , Pref. Equity Total Minority Interest (0.3) (12.3) (3.5) (2.9) (2.8) (1.2) + Total Debt = Total Capital , , , , ,474.0 * Pricing as of the filing date of the balance sheet period end date. For TEV calculation purposes on this page Capital IQ only uses balance sheet components from the original filing that is publicly available as of a given pricing date and does not use restated balance sheet data from a later filing. In the cases where a company did not disclose balance sheet values for a particular period, TEV is calculated using balance sheet components from the last reported balance sheet as of this date. The table above is organized along period end dates. Historical Equity Pricing Data supplied by 17 of 150

18 Sports Direct International plc (LSE:SPD) > Financials > Capital Structure Summary In Millions of the reported currency, except ratios and % of Total values. Restatement: Latest Filings Period Type: Annual Currency: Reported Currency Conversion: Historical Units: S&P Capital IQ (Defau Decimals: Capital IQ (Default) Order: Latest on Right Capital Structure Data For the Fiscal Period Ending Apr Apr months Oct Currency GBP GBP GBP Units Millions % of Total Millions % of Total Millions % of Total Total Debt % % % Total Common Equity % 1, % 1, % Total Minority Interest (3.5) (0.3%) (2.8) (0.2%) (1.2) (0.1%) Total Capital 1, % 1, % 1, % Debt Summary Data For the Fiscal Period Ending Apr Apr months Oct Currency GBP GBP GBP Units Millions % of Total Millions % of Total Millions % of Total Total Revolving Credit % % % Total Term Loans % % % Total Principal Due % % % Total Adjustments % Total Debt Outstanding % % % Available Credit Undrawn Revolving Credit Total Undrawn Credit Additional Totals Total Cash & ST Investments Net Debt Total Senior Debt % % % Total Short-Term Borrowings % % - - Curr. Port. of LT Debt/Cap. Leases % % % 18 of 150

19 Long-Term Debt (Incl. Cap. Leases) % % % Total Bank Debt % % % Total Unsecured Debt % % % Variable Rate Debt % % % Credit Ratios Net Debt/EBITDA 0.7x - 0.2x - 0.1x - Total Debt/EBITDA 1.1x - 0.4x - 0.5x - Total Senior Debt/EBITDA 1.1x - 0.4x - 0.4x - Net Debt/(EBITDA-CAPEX) 0.8x - 0.2x - 0.1x - Total Debt/(EBITDA-CAPEX) 1.4x - 0.5x - 0.9x - Total Senior Debt/(EBITDA-CAPEX) 1.4x - 0.5x - 0.7x - Fixed Payment Schedule LT Debt (Incl. Cap. Leases) Due % % - - LT Debt (Incl. Cap. Leases) Due % % - - LT Debt (Incl. Cap. Leases) Due % % - - LT Debt (Incl. Cap. Leases) Due % % - - LT Debt (Incl. Cap. Leases) Due % % - - LT Debt (Incl. Cap. Leases) Due, Next 5 Yrs % % - - Operating Lease Commitment Due Operating Lease Commitment Due Operating Lease Commitment Due Operating Lease Commitment Due Operating Lease Commitment Due Operating Lease Commitment Due, Next 5 Yrs Operating Lease Commitment Due, After 5 Yrs Sub-Lease Income Sub-Lease Income Sub-Lease Income Sub-Lease Income Sub-Lease Income Sub-Lease Income, Next 5 Yrs Sub-Lease Income, After 5 Yrs Contractual Obligations Due Contractual Obligations Due Contractual Obligations Due, Next 5 Yrs Total Contractual Obligations Interest Rate Data Filing Date Jul Jul Dec of 150

20 Sports Direct International plc (LSE:SPD) > Financials > Capital Structure Details Principal Due in Millions of the reported currency. Period Type: Annual Source: A 2015 filed Jul Currency: Reported Currency Conversion: Historical Units: S&P Capital IQ (Default) Decimals: Capital IQ (Default) FY 2015 (Apr ) Capital Structure As Reported Details Description Type Principal Due (GBP) Coupon/Base Rate Floating Rate Maturity Seniority Secured Convertible Bank and Other Loans Term Loans NA NA - Senior No No GBP Bank Overdrafts Revolving Credit 0.8 NA NA Apr Senior No No GBP Committed Unsecured Revolving Facility Agreement Revolving Credit - NA NA - Senior No No GBP Working Capital Facility Revolving Credit - NA NA - Senior No No GBP Repayment Currency FY 2014 (Apr ) Capital Structure As Reported Details Description Type Principal Due (GBP) Coupon/Base Rate Floating Rate Maturity Seniority Secured Convertible Bank and Other Loans * Term Loans 68.2 NA NA - Senior No No GBP Bank Overdrafts Revolving Credit 5.7 NA NA Apr Senior No No GBP Revolving Facility Agreement * Revolving Credit NA NA Mar Senior No No GBP Repayment Currency Revolving Facility Agreement with Barclays Bank Pl * Revolving Facility Agreement with Handelsbanken Plc * Revolving Credit 50.0 NA NA Mar Senior No No GBP Revolving Credit 25.0 NA NA Mar Senior No No GBP 20 of 150

21 Sports Direct International plc (LSE:SPD) > Financials > Ratios Restatement: Latest Filings Period Type: Annual Order: Latest on Right Decimals: Capital IQ (Default) Ratios For the Fiscal Period Ending Apr Apr Apr Apr Apr LTM Oct Profitability Return on Assets % 9.1% 9.2% 10.4% 10.2% 10.7% 9.6% Return on Capital % 15.0% 15.2% 16.1% 14.9% 15.0% 13.6% Return on Equity % 28.2% 26.3% 27.2% 24.6% 24.4% 24.1% Return on Common Equity % 28.6% 26.4% 27.1% 24.6% 24.2% 23.8% Margin Analysis Gross Margin % 41.2% 40.5% 40.9% 42.7% 43.8% 44.3% SG&A Margin % 32.8% 32.4% 31.4% 33.4% 33.1% 33.6% EBITDA Margin % 12.5% 11.6% 12.1% 11.7% 13.2% 13.5% EBITA Margin % 8.7% 8.4% 9.9% 9.6% 11.0% 11.0% EBIT Margin % 8.5% 8.2% 9.7% 9.4% 10.5% 10.5% Earnings from Cont. Ops Margin % 5.2% 5.8% 6.9% 6.6% 8.5% 9.7% Net Income Margin % 5.3% 5.8% 6.9% 6.7% 8.5% 9.6% Net Income Avail. for Common Margin % 5.3% 5.8% 6.9% 6.7% 8.5% 9.6% Normalized Net Income Margin % 5.2% 5.2% 5.9% 5.7% 6.9% 8.6% Levered Free Cash Flow Margin % 11.5% (0.0%) 2.1% 3.5% (0.0%) 1.8% Unlevered Free Cash Flow Margin % 11.7% 0.2% 2.3% 3.7% 0.1% 1.9% Asset Turnover Total Asset Turnover 1.7x 1.8x 1.7x 1.7x 1.6x 1.5x Fixed Asset Turnover 6.3x 6.7x 6.8x 7.3x 6.8x 6.7x Accounts Receivable Turnover 32.8x 39.0x 42.6x 42.9x 38.6x 15.0x Inventory Turnover 4.3x 4.1x 3.4x 3.1x 2.9x 2.5x Short Term Liquidity Current Ratio 1.3x 1.4x 1.6x 1.1x 2.3x 2.3x Quick Ratio 0.4x 0.4x 0.5x 0.3x 0.6x 0.8x Cash from Ops. to Curr. Liab. 0.6x 0.5x 0.3x 0.2x 0.6x 0.5x Avg. Days Sales Out Avg. Days Inventory Out Avg. Days Payable Out Avg. Cash Conversion Cycle of 150

22 Long Term Solvency Total Debt/Equity 63.2% 47.4% 46.7% 44.4% 11.9% 14.2% Total Debt/Capital 38.7% 32.2% 31.9% 30.7% 10.6% 12.5% LT Debt/Equity 59.2% 45.5% 38.1% 0.8% 11.8% 14.2% LT Debt/Capital 36.3% 30.8% 26.0% 0.6% 10.5% 12.4% Total Liabilities/Total Assets 63.9% 58.3% 54.2% 51.9% 34.5% 36.6% EBIT / Interest Exp. 29.3x 25.3x 29.4x 31.3x 43.5x 77.3x EBITDA / Interest Exp. 42.8x 35.8x 36.8x 39.2x 54.6x 98.8x (EBITDA-CAPEX) / Interest Exp. 38.4x 14.1x 30.0x 30.9x 40.4x 56.7x Total Debt/EBITDA 1.1x 1.1x 1.1x 1.1x 0.4x 0.5x Net Debt/EBITDA 0.7x 0.7x 0.6x 0.7x 0.2x 0.1x Total Debt/(EBITDA-CAPEX) 1.2x 2.7x 1.4x 1.4x 0.5x 0.8x Net Debt/(EBITDA-CAPEX) 0.8x 1.7x 0.7x 0.8x 0.2x 0.1x Altman Z Score Growth Over Prior Year Total Revenue 10.2% 14.8% 19.1% 23.8% 4.7% 1.4% Gross Profit 11.8% 13.0% 20.2% 29.1% 7.4% 4.0% EBITDA 69.2% 7.0% 24.1% 20.2% 17.5% 15.5% EBITA 98.2% 11.3% 39.7% 20.5% 19.1% 15.1% EBIT 102.6% 10.4% 40.6% 19.9% 17.3% 13.9% Earnings from Cont. Ops. (6.7%) 26.9% 43.6% 18.4% 34.4% 45.8% Net Income (5.9%) 26.2% 42.7% 18.9% 33.4% 44.8% Normalized Net Income 25.5% 15.6% 35.3% 19.1% 28.0% 63.9% Diluted EPS before Extra (5.6%) 19.9% 46.1% 19.7% 33.6% 43.3% Accounts Receivable 3.9% (10.3%) 30.1% 17.8% 14.8% 28.1% Inventory (0.4%) 45.4% 41.1% 26.5% (8.6%) (3.4%) Net PP&E (12.9%) 32.6% 6.1% 24.2% 2.5% 9.1% Total Assets (4.6%) 23.6% 24.4% 20.7% 4.3% 9.9% Tangible Book Value 203.7% 96.7% 63.6% 39.9% 60.6% 47.5% Common Equity 28.0% 42.8% 36.5% 27.3% 41.8% 31.3% Cash from Ops. 11.9% (10.2%) (30.8%) 46.0% 41.8% 126.6% Capital Expenditures 21.8% 532.7% (62.7%) 39.5% 44.6% 161.0% Levered Free Cash Flow 103.4% NM NM 104.3% NM NM Unlevered Free Cash Flow 95.5% (98.1%) 1,364.8% 96.3% (97.0%) NM Dividend per Share NA NA NA NA NA NA 22 of 150

23 Compound Annual Growth Rate Over Two Years Total Revenue 8.1% 12.5% 16.9% 21.4% 13.8% 7.7% Gross Profit 8.7% 12.4% 16.5% 24.6% 17.8% 10.6% EBITDA 16.6% 34.6% 15.2% 22.1% 18.9% 16.1% EBITA 17.5% 48.5% 24.7% 29.7% 19.8% 15.4% EBIT 18.0% 49.6% 24.6% 29.9% 18.6% 14.5% Earnings from Cont. Ops. NM 8.8% 35.0% 30.4% 26.2% 27.8% Net Income NM 9.0% 34.2% 30.3% 25.9% 27.1% Normalized Net Income 19.3% 20.4% 25.1% 27.0% 23.5% 31.5% Diluted EPS before Extra NM 6.4% 32.3% 32.2% 26.4% 26.8% Accounts Receivable (10.1%) (3.5%) 8.0% 23.8% 16.3% 25.7% Inventory (8.8%) 20.3% 43.2% 33.6% 7.6% 6.5% Net PP&E (10.7%) 7.5% 18.6% 14.8% 12.8% 2.5% Total Assets (3.2%) 8.6% 24.0% 22.6% 12.2% 10.1% Tangible Book Value NM 144.4% 79.4% 51.3% 49.9% 47.5% Common Equity 48.3% 35.2% 39.6% 31.8% 34.4% 30.4% Cash from Ops. 41.4% 0.2% (21.2%) 0.5% 43.9% 18.3% Capital Expenditures (22.3%) 177.6% 53.6% (27.9%) 42.0% 77.7% Levered Free Cash Flow 1,196.2% NM (49.7%) NM NM (33.0%) Unlevered Free Cash Flow 261.6% (80.9%) (47.8%) 436.2% (75.8%) (32.0%) Dividend per Share NA NA NA NA NA NA Compound Annual Growth Rate Over Three Years Total Revenue 8.3% 10.3% 14.6% 19.2% 15.6% 11.6% Gross Profit 6.2% 10.1% 14.9% 20.6% 18.6% 15.0% EBITDA 10.6% 13.3% 31.0% 16.9% 20.6% 16.8% EBITA 7.7% 15.4% 45.5% 23.3% 26.1% 18.5% EBIT 7.6% 15.4% 46.5% 23.0% 25.5% 18.0% Earnings from Cont. Ops. 2.3% NM 19.3% 29.2% 31.7% 29.6% Net Income 2.5% NM 19.2% 28.9% 31.3% 29.0% Normalized Net Income 19.1% 18.0% 25.2% 23.0% 27.3% 29.4% Diluted EPS before Extra 4.4% NM 18.2% 28.0% 32.7% 29.3% Accounts Receivable (8.3%) (10.2%) 6.6% 11.2% 20.7% 21.5% Inventory (0.1%) 6.5% 26.9% 37.4% 17.7% 12.7% Net PP&E (9.9%) 1.9% 7.0% 20.4% 10.5% 10.3% Total Assets (1.9%) 5.0% 13.6% 22.9% 16.1% 15.3% 23 of 150

24 Tangible Book Value NM NM 113.8% 65.1% 54.3% 49.8% Common Equity 38.3% 46.4% 35.7% 35.4% 35.1% 32.8% Cash from Ops % 21.5% (11.4%) (3.2%) 12.7% 14.7% Capital Expenditures (45.8%) 56.3% 42.2% 48.7% (9.1%) 5.3% Levered Free Cash Flow NM NM (19.9%) (19.8%) NM NM Unlevered Free Cash Flow NM (37.6%) (18.9%) (18.8%) (4.9%) 254.8% Dividend per Share NA NA NA NA NA NA Compound Annual Growth Rate Over Five Years Total Revenue 6.0% 6.4% 11.7% 14.6% 14.3% 13.3% Gross Profit 7.6% 4.5% 10.2% 15.7% 16.1% 14.8% EBITDA 7.2% 2.7% 12.4% 16.8% 26.0% 20.3% EBITA 5.2% (0.1%) 14.2% 20.9% 34.6% 26.3% EBIT 4.9% (0.2%) 14.1% 21.0% 34.6% 26.1% Earnings from Cont. Ops. 5.1% 23.3% 14.3% NM 22.0% 18.1% Net Income 6.0% 23.0% 14.2% NM 21.9% 17.8% Normalized Net Income 6.6% 4.9% 21.4% 21.5% 24.5% 21.3% Diluted EPS before Extra (1.9%) 15.3% 14.8% NM 21.4% 17.2% Accounts Receivable (0.3%) (4.6%) (2.1%) 2.1% 10.4% 13.6% Inventory (0.1%) 6.5% 15.4% 16.6% 18.8% 18.5% Net PP&E 2.9% 6.9% 0.6% 6.9% 9.3% 11.5% Total Assets 6.5% 3.7% 7.8% 11.7% 13.1% 15.8% Tangible Book Value (11.9%) 5.6% NM NM 85.5% 58.8% Common Equity 3.0% 11.4% 38.8% 40.4% 35.1% 32.1% Cash from Ops. 24.6% (1.2%) 39.2% 12.6% 7.6% 7.5% Capital Expenditures (21.9%) 18.8% (17.8%) 14.7% 42.1% 55.1% Levered Free Cash Flow NM NM NM 144.1% NM (12.9%) Unlevered Free Cash Flow NM (56.4%) NM 47.6% (50.0%) (12.8%) Dividend per Share NA NA NA NA NA NA 24 of 150

25 Sports Direct International plc (LSE:SPD) > Financials > Industry Specific In Millions of the reported currency, except per share items. Restatement: Latest Filings Period Type: Annual Currency: Reported Currency Conversion: Historical Order: Latest on Right Units: S&P Capital IQ (Default) Decimals: Capital IQ (Default) Industry Specific For the Fiscal Period Ending Apr Apr Apr Apr Apr Apr Currency GBP GBP GBP GBP GBP GBP Retail Specific Data Total Stores Total Same Store Sales Growth 3.4% 6.6% 0.7% 10.6% 10.5% 7.4% Gross Margin 40.6% 41.2% 40.5% 40.9% 42.7% 43.8% Retail Revenues 1, , , , , ,222.4 Wholesale Revenues Online Revenues Total Retail Sq. Ft. (Net) 4,349, Owned / Operated Store Data Total Owned/Operated Stores Owned/Operated Same Store Sales Growth 3.4% 6.6% 0.7% 10.6% 10.5% 7.4% Filing Date Jul Aug Jul Aug Jul Jul of 150

26 Sports Direct International plc (LSE:SPD) > Financials > Segments In Millions of the reported currency. View By: Line Items Restatement: Latest Filings Period Type: Annual Order: Latest on Right Currency: Reported Currency Conversion: Historical Units: S&P Capital IQ (Defau Decimals: Capital IQ (Default) Business Segments Reclassified Apr Reclassified Apr Reclassified Apr Reclassified Apr For the Fiscal Period Ending Apr Apr Currency GBP GBP GBP GBP GBP GBP Revenues Retail - Sports Retail , , ,398.5 Retail - Premium Lifestyle Brands Corporate (6.1) (3.0) (3.3) (42.1) (30.1) (25.5) Retail - UK Sports 1, , , Retail - International Retail Total Revenues 1, , , , , ,832.6 EBITDA Retail - Sports Retail Retail - Premium Lifestyle - - (5.9) 1.0 (20.4) (7.7) Brands Retail - UK Sports Retail - International Retail Total EBITDA Gross Profit Before Tax Retail - Sports Retail ,069.1 Retail - Premium Lifestyle Brands Retail - UK Sports Retail - International Retail Total Gross Profit Before Tax , ,240.8 Operating Profit Before Tax Retail - Sports Retail Retail - Premium Lifestyle - - (7.6) (1.1) (25.7) (11.2) Brands Retail - UK Sports Retail - International Retail Total Operating Profit Before Tax of 150

27 Assets Retail - Sports Retail , , ,726.9 Retail - Premium Lifestyle Brands Corporate (107.8) (86.7) (97.2) (32.9) (229.8) (168.4) Retail - UK Sports Retail - International Retail Retail Total Assets , , , ,773.7 Depreciation & Amortization Retail - Sports Retail Retail - Premium Lifestyle Brands Retail - UK Sports Retail - International Retail Retail Total Depreciation & Amortization Capital Expenditure Retail - Sports Retail (54.4) (57.6) (93.5) Retail - Premium Lifestyle - - (6.1) (13.7) (7.0) (2.3) Brands (2.0) (1.2) (24.4) (5.7) (4.5) (4.4) Retail - UK Sports - - (120.3) Retail - International Retail - - (7.3) Retail (17.4) (24.8) Total Capital Expenditure (19.4) (26.0) (158.2) (73.8) (69.1) (100.3) Filing Date Jul Aug Jul Aug Jul Jul Geographic Segments Reclassified Apr Reclassified Apr Reclassified Apr Reclassified Apr For the Fiscal Period Ending Apr Apr Currency GBP GBP GBP GBP GBP GBP Revenues United Kingdom (UK) 1, , , , , ,252.4 Non-United Kingdom (UK) Total Revenues 1, , , , , , of 150

28 Assets United Kingdom (UK) , , ,564.9 Non-United Kingdom (UK) Corporate (107.8) (86.7) (97.2) (32.9) (229.8) (168.4) Total Assets , , , ,773.7 Capital Expenditure United Kingdom (UK) (15.2) (14.1) (148.3) (59.6) (51.5) (81.8) Non-United Kingdom (UK) (4.2) (11.9) (9.9) (14.2) (17.6) (18.5) Total Capital Expenditure (19.4) (26.0) (158.2) (73.8) (69.1) (100.3) Filing Date Jul Aug Jul Aug Jul Jul of 150

29 Sports Direct Capital IQ spreadsheets: Comparable Company Information Data Provided by Historical Equity Pricing Data supplied by 29 of 150

30 Sports Direct International plc (LSE:SPD) > Quick Comparable Analysis > Financial Data Details Template: Currency: As-Of Date: Capital IQ Default Comps US Dollar Mar Company Comp Set Company Name Day Close Price Latest Shares Outstanding Latest Market Capitalization Latest LTM Net LTM Total Debt Pref. Equity LTM Minority Interest Total Enterprise LTM Tangible Book LTM Filing Date, Value Latest Value/Share Income Statement LTM Total Revenue LTM EBITDA LTM EBIT LTM Diluted EPS Excl. Extra Items NTM Revenue (Capital IQ) Debenhams plc (LSE:DEB) , , ,706.3 ( 0.09) Oct , , ASOS Plc (AIM:ASC) ,602.2 (168.4) - ( 0.04) 3, Oct , , Next Plc (LSE:NXT) , , , Mar ,900 1, , , , Zalando SE (XTRA:ZAL) ,848.9 (1,254.9) - - 6, Mar , , Halfords Group plc (LSE:HFD) , , Nov , , Marks & Spencer Group plc , , , ( 3.96) 11, Nov ,633 1, , , , (LSE:MKS) JD Sports Fashion plc (LSE:JD.) ,035.6 (141.7) , Oct , , Booker Group PLC (LSE:BOK) , ,078.0 (166.8) - - 3, Oct , , Cabela's Incorporated (NYSE:CAB) , , , Feb , , WH Smith PLC (LSE:SMWH) ,869.3 (21.2) - - 2, Oct , , NTM EBITDA (Capital IQ) NTM EPS (Capital IQ) Sports Direct International plc (LSE:SPD) Summary Statistics Day Close Price Latest , ( 1.66) 2, Dec , , Shares Outstanding Latest Market Capitalization Latest LTM Net LTM Total Debt Pref. Equity LTM Minority Interest Total Enterprise LTM Tangible Book LTM Filing Date, Value Latest Value/Share Income Statement LTM Total Revenue LTM EBITDA LTM EBIT LTM Diluted EPS Excl. Extra Items NTM Revenue (Capital IQ) High , , , , ,633 1, , , , Low ,076.5 (1,254.9) - ( 3.96) 1,164.6 ( 0.09) - 1, , Mean , , , , Median , ( 0.04) 3, , , Displaying 11 Companies. All values in millions, except per share data and ratios. Values converted at today's spot rate. Companies by default are sorted by S&P Capital IQ s proprietary relevancy score. NTM EBITDA (Capital IQ) NTM EPS (Capital IQ) Historical Equity Pricing Data supplied by 30 of 150

31 Sports Direct International plc (LSE:SPD) > Quick Comparable Analysis > Trading Multiples Details Template: Currency: As-Of Date: Capital IQ Default Comps US Dollar Mar Company Comp Set Company Name TEV/Total Revenues LTM - Latest TEV/EBITDA TEV/EBIT LTM - LTM - Latest Latest P/Diluted EPS Before Extra LTM - Latest P/TangBV LTM - Latest NTM TEV/Forward Total Revenue (Capital IQ) NTM TEV/Forward NTM Forward P/E EBITDA (Capital IQ) (Capital IQ) Debenhams plc (LSE:DEB) 0.5x 5.4x 9.0x 9.5x NM 0.42x 4.90x 9.41x ASOS Plc (AIM:ASC) 2.1x 49.4x 59.3x 69.2x 15.8x 1.75x 28.39x 56.45x Next Plc (LSE:NXT) 2.2x 9.2x 10.5x 12.8x 31.2x 2.13x 9.17x 12.62x Zalando SE (XTRA:ZAL) 2.0x 53.8x 67.2x 59.3x 5.6x 1.58x 31.45x 62.97x Halfords Group plc (LSE:HFD) 0.8x 7.6x 9.8x 12.0x 26.8x 0.79x 7.22x 12.04x Marks & Spencer Group plc (LSE:MKS) 0.8x 7.1x 10.4x 15.0x 2.9x 0.78x 6.06x 11.19x JD Sports Fashion plc (LSE:JD.) 1.2x 12.2x 16.7x 25.4x 10.0x 1.15x 10.83x 20.79x Booker Group PLC (LSE:BOK) 0.6x 16.4x 18.8x 23.6x 30.1x 0.55x 15.70x 23.17x Cabela's Incorporated (NYSE:CAB) 2.0x 17.1x 24.1x 17.7x 1.8x 1.84x 15.43x 14.84x WH Smith PLC (LSE:SMWH) 1.7x 13.3x 16.5x 21.0x 23.4x 1.68x 11.77x 19.06x Sports Direct International plc (LSE:SPD) 0.7x 5.4x 6.9x 8.0x 1.9x 0.72x 5.42x 9.51x Summary Statistics TEV/Total Revenues LTM - Latest TEV/EBITDA TEV/EBIT LTM - LTM - Latest Latest P/Diluted EPS Before Extra LTM - Latest P/TangBV LTM - Latest NTM TEV/Forward Total Revenue (Capital IQ) NTM TEV/Forward NTM Forward P/E EBITDA (Capital IQ) (Capital IQ) High 2.2x 53.8x 67.2x 69.2x 31.2x 2.13x 31.45x 62.97x Low 0.5x 5.4x 9.0x 9.5x 1.8x 0.42x 4.90x 9.41x Mean 1.4x 19.1x 24.2x 26.6x 16.4x 1.27x 14.09x 24.25x Median 1.5x 12.7x 16.6x 19.4x 15.8x 1.36x 11.30x 16.95x Displaying 11 Companies. All values in millions, except per share data and ratios. Values converted at today's spot rate. Companies by default are sorted by S&P Capital IQ s proprietary relevancy score. Historical Equity Pricing Data supplied by 31 of 150

32 Sports Direct International plc (LSE:SPD) > Quick Comparable Analysis > Operating Statistics Details Template: Currency: As-Of Date: Capital IQ Default Comps US Dollar Mar Company Comp Set Company Name LTM Gross Margin % LTM EBITDA Margin % LTM EBIT Margin % LTM Net Income Margin % LTM Total Revenues, 1 Yr Growth % LTM EBITDA, 1 Yr Growth % LTM EBIT, 1 Yr Growth % LTM Net Income, 1 Yr Growth % LTM Total Debt/Capital % LTM Total Debt/EBITDA NTM LT EPS Growth Rate (Capital IQ) Debenhams plc (LSE:DEB) 13% 10% 5.8% 4.03% 0.43% 2.96% 4.84% 7.22% 29.27% 1.6x ASOS Plc (AIM:ASC) 50% 4% 3.6% 3.20% 17.97% (0.41%) (6.04%) (0.23%) Next Plc (LSE:NXT) 35% 24% 20.9% 15.96% 4.43% 8.21% 8.66% 5.02% 75.70% 1.0x Zalando SE (XTRA:ZAL) 45% 4% 3.0% 4.11% 33.61% 41.50% 44.12% % 1.37% 0.2x - - Halfords Group plc (LSE:HFD) 53% 10% 8.1% 6.18% 6.33% 6.80% 3.82% 5.61% 18.13% 0.8x Marks & Spencer Group plc (LSE:MKS) 38% 11% 7.6% 4.16% 0.25% (0.36%) 8.59% (14.42%) 40.61% 1.8x JD Sports Fashion plc (LSE:JD.) 48% 10% 7.4% 4.47% 25.97% 25.44% 24.53% 55.53% 15.40% 0.4x Booker Group PLC (LSE:BOK) 5% 4% 3.1% 2.60% 0.14% 12.06% 13.39% 15.46% Cabela's Incorporated (NYSE:CAB) 43% 11% 8.1% 4.74% 9.60% 1.49% (3.84%) (6.14%) 72.22% 10.4x WH Smith PLC (LSE:SMWH) 58% 13% 10.4% 8.57% 1.46% 7.80% 8.93% 9.78% 11.45% 0.1x Year Beta Sports Direct International plc (LSE:SPD) 44% 13% 10.5% 9.57% 1.42% 15.49% 13.91% 44.78% 12.46% 0.5x Summary Statistics LTM Gross Margin % LTM EBITDA Margin % LTM EBIT Margin % LTM Net Income Margin % LTM Total Revenues, 1 Yr Growth % LTM EBITDA, 1 Yr Growth % LTM EBIT, 1 Yr Growth % LTM Net Income, 1 Yr Growth % LTM Total Debt/Capital % LTM Total Debt/EBITDA NTM LT EPS Growth Rate (Capital IQ) High 58% 24% 20.9% 15.96% 33.61% 41.50% 44.12% % 75.70% 10.4x Low 5% 4% 3.0% 2.60% 0.14% (0.41%) (6.04%) (14.42%) 1.37% 0.1x Mean 39% 10% 7.8% 5.80% 10.02% 10.55% 10.70% 23.58% 33.02% 2.0x Median 44% 10% 7.5% 4.32% 5.38% 7.30% 8.63% 6.42% 23.70% 0.9x Displaying 11 Companies. All values in millions, except per share data and ratios. Values converted at today's spot rate. Companies by default are sorted by S&P Capital IQ s proprietary relevancy score. 5 Year Beta Historical Equity Pricing Data supplied by 32 of 150

33 Sports Direct International plc (LSE:SPD) > Quick Comparable Analysis > Implied Valuation Details Template: Currency: As-Of Date: Capital IQ Default Comps US Dollar Mar Company Comp Set Company Name Sports Direct International plc (LSE:SPD) LTM Total Revenue LTM EBITDA LTM EBIT NTM Revenue (Capital IQ) NTM EBITDA (Capital IQ) LTM Basic EPS NTM EPS (Capital IQ) LTM Tangible Book Value/Share 4, , Total Enterprise Value Multiples Pricing Multiples LTM TEV/Total Revenues LTM TEV/EBITDA LTM TEV/EBIT NTM TEV/Forward Total Revenue NTM TEV/Forward EBITDA LTM P/Diluted EPS Before Extra NTM Forward P/E LTM P/TangBV High 2.2x 53.8x 67.2x 2.13x 31.45x 69.2x 62.97x 31.2x Low 0.5x 5.4x 9.0x 0.42x 4.90x 9.5x 9.41x 1.8x Mean 1.4x 19.1x 24.2x 1.27x 14.09x 26.6x 24.25x 16.4x Median 1.5x 12.7x 16.6x 1.36x 11.30x 19.4x 16.95x 15.8x Implied Enterprise Value High 8,760 29, , , , Low 2,081 2, , , , Mean 5,561 10, , , , Median 5,908 6, , , , Total Cash & ST Investments Total Debt Total Pref. Equity Minority Interest ( 1.66) ( 1.66) ( 1.66) ( 1.66) ( 1.66) = Implied Equity Value High 8,733 28, , , , , , , Low 2,054 2, , , , , , , Mean 5,534 10, , , , , , , Median 5,881 6, , , , , , , / Shares Outstanding of 150

34 = Implied Price per Share High Low Mean Median Mean Equity Value Across Multiples Equity Value Price Per Share High 23, Low 2, Mean 10, Median 8, All values in millions, except per share data and ratios. Values converted at today's spot rate. Historical Equity Pricing Data supplied by 34 of 150

35 Sports Direct International plc (LSE:SPD) > Quick Comparable Analysis > Credit Health Panel Details Template: Currency: As-Of Date: Capital IQ Default Comps US Dollar Mar Company Comp Set Company Name Overall Operational Solvency Liquidity LTM Period Ending Financials Updated Country Primary Industry Classification Booker Group PLC (LSE:BOK) Sep Oct United Kingdom Food Distributors WH Smith PLC (LSE:SMWH) Aug Dec United Kingdom Specialty Stores Zalando SE (XTRA:ZAL) Dec Mar Germany Internet Retail JD Sports Fashion plc (LSE:JD.) Aug Oct United Kingdom Specialty Stores ASOS Plc (AIM:ASC) Aug Oct United Kingdom Internet Retail Cabela's Incorporated (NYSE:CAB) Jan Feb United States Specialty Stores Marks & Spencer Group plc (LSE:MKS) Sep Nov United Kingdom Department Stores Halfords Group plc (LSE:HFD) Oct Nov United Kingdom Automotive Retail Debenhams plc (LSE:DEB) Aug Dec United Kingdom Department Stores Sports Direct International plc (LSE:SPD) Oct Dec United Kingdom Specialty Stores Displaying 10 Companies. All values in millions, except per share data and ratios. Values converted at today's spot rate. Credit Health Panel metric values are calculated by converting all currencies to USD based on yesterday s spot rate. Currencies displayed on the page are converted at today s spot rate from yesterday s USD value. 35 of 150

36 Sports Direct Capital IQ spreadsheets: Estimates Data Provided by Historical Equity Pricing Data supplied by 36 of 150

37 Sports Direct International plc (LSE:SPD) > Capital IQ Estimates > Consensus Currency: Reported Currency Units: Capital IQ (Default) Consolidation: Consolidated Conversion: Today's Spot Rate Decimals: CapitalIQ (Default) Acctg. Standard: IFRS Current Fiscal Year End: Apr FY 2016 Earnings Release Date: Jul LSE:SPD (GBP) Mean Median High/Low Std. Dev. No. of Estimates. LSE:SPD - Recommendation: Outperform (2.46) Target Price / / Buy 4 LT Growth 6.15% 5.59% 9.70%/3.70% /4 2 - Outperform Hold Underperform Sell No Opinion 0 Market Summary LSE:SPD LSE:SPD (IFRS GBP) Currency British Pound Current Half Current Year NTM Latest Price/Last Close Price 3.48/3.48 EPS Normalized Wk. High/Low 8.21/3.45 Company Level (IFRS GBP) Potential Upside/Diff. from Target Price %/1.25 Revenue 1, , EBITDA Fiscal Years LSE:SPD (GBP) EPS Normalized 0.37 A 0.36 E 0.37 E 0.40 E Final Est E Median 0.37 E 0.36 E 0.37 E 0.40 E High 0.41 E 0.41 E 0.41 E 0.47 E Low 0.35 E 0.34 E 0.31 E 0.33 E Std. Dev No. of Estimates 11/11 12/12 12/12 10/ Acctg. Standard IFRS IFRS IFRS IFRS EPS (GAAP) 0.39 A 0.40 E 0.38 E 0.40 E Final Est E Median 0.35 E 0.39 E 0.38 E 0.38 E High 0.37 E 0.47 E 0.44 E 0.48 E Low 0.35 E 0.33 E 0.32 E 0.34 E Std. Dev No. of Estimates 5/5 6/6 6/6 5/ Acctg. Standard IFRS IFRS IFRS IFRS Company Level (GBP) Revenue 2, A 2, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E Final Est. 2, E Median 2, E 2, E 2, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E High 2, E 2, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E Low 2, E 2, E 2, E 2, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E Std. Dev No. of Estimates 10/10 11/11 11/11 9/9 2/2 2/2 2/2 2/2 2/2 2/2 2/2 Acctg. Standard IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS EBITDA A E E E Final Est E Median E E E E of 150

38 High E E E E Low E E E E Std. Dev No. of Estimates 10/10 12/12 11/11 9/ Acctg. Standard IFRS IFRS IFRS IFRS Calendar Years LSE:SPD (GBP) EPS Normalized 0.38 A 0.37 E 0.39 E Final Est E Median 0.36 E 0.37 E 0.39 E High 0.41 E 0.41 E 0.45 E Low 0.34 E 0.32 E 0.32 E Acctg. Standard IFRS IFRS IFRS EPS (GAAP) 0.40 E 0.39 E 0.40 E Median 0.38 E 0.38 E 0.38 E High 0.45 E 0.45 E 0.47 E Low 0.34 E 0.32 E 0.33 E Acctg. Standard IFRS IFRS IFRS Company Level (GBP) Revenue 2, E 2, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E Median 2, E 2, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E High 2, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E Low 2, E 2, E 2, E 3, E 3, E 3, E 3, E 3, E 3, E 3, E Acctg. Standard IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS EBITDA E E E Median E E E High E E E Low E E E Acctg. Standard IFRS IFRS IFRS Fiscal Quarters Company Level (GBP) FQ Oct 2014 FQ Oct 2015 Revenue E E Median E E High E E Low E E Std. Dev. - - No. of Estimates 1/1 1/1 Acctg. Standard IFRS IFRS Fiscal Halves LSE:SPD (GBP) FH Apr 2015 FH Oct 2015 FH Apr 2016 EPS Normalized 0.18 A 0.21 A 0.17 E Final Est E - - Median 0.16 E E High 0.19 E E Low 0.16 E E Std. Dev No. of Estimates 3/3-1/1 Acctg. Standard IFRS IFRS IFRS 38 of 150

39 Company Level (GBP) FH Apr 2015 FH Oct 2015 FH Apr 2016 Revenue 1, A - 1, E Final Est. 1, E - - Median 1, E - 1, E High 1, E - 1, E Low 1, E - 1, E Std. Dev No. of Estimates 3/3-1/1 Acctg. Standard IFRS - IFRS EBITDA A - - Final Est E - - Median E - - High E - - Low E - - Std. Dev No. of Estimates 2/2 - - Acctg. Standard IFRS of 150

40 Sports Direct International plc (LSE:SPD) > Capital IQ Estimates > Multiples Currency: Reported CurreConversion: Today's Spot Rate Units: Capital IQ (DefaultDecimals: CapitalIQ (Default) Consolidation: ConsolidatAcctg. Standard: IFRS Dilution: Basic Current Fiscal Year End: Apr LSE:SPD (Current Fiscal Year End: Apr ) Based on Market Price TEV/REV TEV/EBITDA TEV/EBIT Price/Earnings PEG P/BV NTM 0.72x 5.42x x 1.55x - FY x 5.55x x 1.56x - FY x 5.29x x 1.53x - FY x 5.07x x 1.43x - FY x FY x FY x FY x FY x CY x 5.53x x 1.55x - CY x 5.36x x 1.54x - CY x 5.13x x 1.46x - CY x CY x CY x CY x CY x of 150

41 Sports Direct International plc (LSE:SPD) > Capital IQ Estimates > Surprise Currency: Reported CurreConversion: Today's Spot Rate Units: Capital IQ (DefaultDecimals: CapitalIQ (Default) Consolidation: ConsolidatAcctg. Standard: IFRS Current Fiscal Year End: Apr FY 2016 Earnings Release Date: Jul Fiscal Years LSE:SPD (GBP) 2015 EPS Normalized 0.00% Difference - Actual 0.37 A Estimate 0.37 E Announced Date Jul Acctg. Standard IFRS EPS (GAAP) 8.33% Difference 0.03 Actual 0.39 A Estimate 0.36 E Announced Date Jul Acctg. Standard IFRS Company Level (GBP) 2015 Revenue (0.80%) Difference ( 22.97) Actual 2, A Estimate 2, E Announced Date Jul Acctg. Standard IFRS EBITDA 3.31% Difference Actual A Estimate E Announced Date Jul Acctg. Standard IFRS 41 of 150

42 Fiscal Halves LSE:SPD (GBP) FH Apr 2015 FH Oct 2015 EPS Normalized 5.88% - Difference Actual 0.18 A 0.21 A Estimate 0.17 E - Announced Date Jul Dec Acctg. Standard IFRS IFRS Company Level (GBP) FH Apr 2015 FH Oct 2015 Revenue 0.26% - Difference Actual 1, A - Estimate 1, E - Announced Date Jul Acctg. Standard IFRS - EBITDA 1.46% - Difference Actual A - Estimate E - Announced Date Jul Acctg. Standard IFRS - 42 of 150

43 Sports Direct International plc (LSE:SPD) > Capital IQ Estimates > Trends Currency: Reported CurreConversion: Today's Spot Rate Units: Capital IQ (Default Decimals: CapitalIQ (Default) Consolidation: Consolidat Acctg. Standard: IFRS Current Fiscal Year End: Apr FY 2016 Earnings Release Date: Jul EPS Normalized LSE:SPD (GBP) FH FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Current month ago months ago months ago months ago months ago ago months ago EPS (GAAP) LSE:SPD (GBP) FH FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Current month ago months ago months ago months ago months ago ago months ago Revenue Company Level (GBP) FQ FQ FH FY 2016 FH FH FY 2017 FH FH FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Current month ago months ago months ago months ago months ago ago months ago EBITDA Company Level (GBP) FQ FQ FH FY 2016 FH FH FY 2017 FH FH FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Current month ago months ago months ago months ago months ago ago months ago of 150

44 Sports Direct Annual Report 2015 (Pages 1-36) Data Provided by Historical Equity Pricing Data supplied by 44 of 150

45 EVERYTHING IS CHANGING 45 of 150

46 KEY HIGHLIGHTS Sports Retail gross margin increased by 170 bps to 44.6% Group underlying EBITDA increased by 15.7% to 383.2m (1) GROUP REVENUE +4.7% April 15 2,832.6m Underlying profit before tax up 20.5% to 300.3m (1) April 14 2,706.0m ANNUAL REPORT 2015 Underlying free cash generation of 301.8m (2) Sports Retail like-for-like stores gross contribution increased by 7.4% (FY14: 10.5%) (3) Continued roll-out of large format city centre stores April 13 2,185.6m April 12 1,807.2m April 11 1,599.2m UNDERLYING EBITDA +15.7% Successful UK launch of Click and Collect in FY15 H2 April m Record EBITDA achieved v. 4th year Share Scheme target Net debt decreased to 59.7m (4) April 14 April 13 April m 287.9m 331.1m 2 (1) Underlying EBITDA, underlying profit before taxation and underlying EPS exclude realised foreign exchange gains/losses in selling and administration costs, exceptional costs and the profit/loss on sale of strategic investments. Underlying EBITDA also excludes the Share Scheme charges. (2) Underlying free cash generation is defined as operating cash flow before working capital, made up of underlying EBITDA (before Share Scheme costs) plus realised foreign exchange gains and losses, less corporation tax paid. April m REPORTED PBT +30.9% (3) Excludes contribution in Sport Eybl and Sports Experts AG (EAG) and Sportland International Group AS (SIG) as the prior year comparative is not a full year. (4) Net debt is borrowings less cash held. April 15 April m 313.4m April 13 April 12 April m 118.8m 207.2m UNDERLYING EPS +21.2% April p April p April p April p April p 46 of 150

47 The Group has delivered another solid set of results in spite of challenging trading conditions including the adverse impact on performance during the period of England s early departure from the FIFA World Cup in Brazil and unseasonably mild weather during autumn, reducing footfall. EVERYTHING IS CHANGING... However, with our ongoing focus on providing customers with exceptional quality and unbeatable value, we have continued to grow Group revenues and EBITDA and have succeeded in surpassing our fourth and final EBITDA target under the 2011 Share Scheme. The first of these awards will vest with participants in September 2015 and the second in September We owe our continued success to the commitment and hard work of those participants and we are delighted that we are able to reward them in this way. 3 Trading since the period end has been in line with management expectations and will continue to be driven by improvements in product range and availability, optimisation of both our in-store and web offerings, the introduction of Click and Collect in the UK and further investment in our store portfolio. Dave Forsey Chief Executive 16 July of 150

48 SPORTS DIRECT AT A GLANCE The Group operates through three strategic business segments: Sports Retail, Premium Lifestyle and Brands. SPORTS RETAIL 85% TOTAL REVENUE 2,398.6m Up 5.5% ANNUAL REPORT 2015 The Group s Sports Retail division supplies a wide range of sports and leisure equipment, across an array of global brands, including Group owned brands such as Dunlop, Slazenger and Lonsdale, third party and licensed-in brands. This wide range of products, combined with extremely competitive pricing, attracts customers to both our stores and website in ever increasing numbers. As at 26 April 2015 Sports Retail operated out of 661 stores in the UK and the rest of Europe (excluding Northern Ireland). The majority of stores trade under the SPORTSDIRECT.com fascia. We continue to expand and develop our stores, with several relocations taking place in the year into larger and better configured space, so that we are better able to serve the needs of our customers. Investment has also continued in specialist performance areas, with visual merchandising improving across the whole of the division. In Europe, the Group s growth has continued, with our products being offered via wholly-owned retail outlets, joint ventures with other retailers and stores within another retailer s store. We have continued the integration of the recently acquired Sport Eybl and Sports Experts AG (EAG), and over the coming year will re-brand key Eybl Megastores to the Lillywhites fascia. During the year, as part of our European growth programme, we increased our European store portfolio by nine stores and entered one new country, with the opening of our Bern store in Switzerland. Our strategy remains to identify partners in new territories while continuing to expand our operations in the countries where we currently trade. 10 Our online sales continue to increase, enhanced in the year by the successful introduction of UK Click and Collect and the development of a streamlined checkout process. PREMIUM LIFESTYLE 7% TOTAL REVENUE 207.6m Down 3.0% Rationalisation of the division has taken place throughout the year, including the closure of loss-making stores, the mitigation of operating costs and the relocation of back-office functions. The Premium Lifestyle division is a must for those fashion conscious shoppers who demand high-end and on trend apparel. The division centres on contemporary luxury with a brand focus, and leading stocked brands include Paul Smith, Fendi and Alexander McQueen. The division enables customers to express their individuality, with new collections regularly being added. Recent additions include White Premiata, Carven and Canada Goose. BRANDS 8% TOTAL REVENUE 226.4m Up 4.1% The Brands division licenses our brands to partners across the world through a committed network of licensing and distribution partners. The unique, integrated approach to brand management ensures consistency, and encourages continual investment and global success for the brands. Focus on our brands is maintained through sponsorship of high-profile media personalities, events, teams and venues. Bolddog, a motorcycle display team made famous in the 2014 series of Britain s Got Talent, are a recent addition to the No Fear brand, and Sno Zone in Reading is a winter sports venue which is sponsored by our Nevica brand. The Slazenger brand has recently signed a renewal sponsorship of The Championships, Wimbledon. Slazenger has sponsored the event since 1902, making this one of the longest partnerships in sporting history. 48 of 150

49 SPORTS STORES ACROSS EUROPE EVERYTHING IS CHANGING Note: Includes associates in Iceland, Republic of Ireland and Northern Ireland that trade under the SPORTSDIRECT.com fascia. 49 of 150