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6.03cm

5.12cm

0.76cm

1.64cm

7.20cm

8.43cm

Investor Presentation October 2017

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8.43cm

Forward looking statements

Forward-Looking Statements INCLUDED IN THIS PRESENTATION ARE FORWARD-LOOKING MANAGEMENT COMMENTS AND OTHER STATEMENTS THAT REFLECT MANAGEMENT’S CURRENT OUTLOOK FOR FUTURE PERIODS These expectations are based on currently available competitive, financial, and economic data along with our current operating plans and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. The forward-looking statements in this presentation should be read in conjunction with the risks and uncertainties discussed in the Pets At Home Annual Report and Accounts.

2

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13.36cm 0.39cm 0.43cm 13.36cm

6.03cm

5.12cm

0.76cm

1.64cm

7.20cm

8.43cm

Market

3

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13.36cm 0.39cm 0.43cm 13.36cm

6.03cm

5.12cm

0.76cm

1.64cm

7.20cm

8.43cm Source: OC&C Strategy Consultants, refers to calendar years

£1.7bn £1.7bn

£0.42bn £0.47bn £0.28bn £0.33bn £0.46bn £0.48bn £0.34bn £0.36bn

£0.89bn £1.1bn

£0.20bn £0.23bn

£1.7bn

£1.9bn

£0.27bn

£0.32bn

Pet market growth has accelerated, driven by faster pace in veterinary, insurance and accessories

£6.8bn

5%

7%

10%

2.5%

9% 5%

0%

1.5%

2014-16 CAGR

First Opinion veterinary

Grooming

Insurance

Health & Hygiene

Advanced Nutrition Treats

Other food

Other accessories

2014 2016

Specialist veterinary referrals 10%

11% Online participation

4%

7%

7.5%

1%

14% 8%

1%

1%

2012-14 CAGR

11%

Total Market 4.5% 4%

4

9%

Source: OC&C 2017. Data refers to calendar years.

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6.03cm

5.12cm

0.76cm

1.64cm

7.20cm

8.43cm

Our total pet product market share has grown from 19% to 20% through 2014-2016

Vet Group Retail

5

53%

21%

5% 13%

36%

36% 73% 64%

6%

14% 13%

17%

19%

15%

19%

7%

8%

13%

16%

12%

8% 9% 3%

21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Advanced Nutrition Bridging Grocery Treats Accessories

Mar

ket S

hare

Pets at Home Grocers Discounters Vets Pet Specialists Online (Specialists and Non-Specialists) Other

Pets at Home Share Change 2014-2016

+2%

Pet product market share by player, 2016

+3% 0% +1% +2%

Source: OC&C 2017. Data refers to calendar years.

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13.36cm 0.39cm 0.43cm 13.36cm

6.03cm

5.12cm

0.76cm

1.64cm

7.20cm

8.43cm

Stores are an important part of future market growth. Bricks and mortar sales along with C&C expected to grow at 2.7% per annum

Vet Group Retail

6

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2016A 2021E

Expe

cted

UK

Pet P

rodu

ct M

arke

t Va

lue

(£bn

.)

Bricks and Mortar Online Click and Collect Online Deliver to Home

Source: OC&C 2017. Data refers to calendar years.

c15% c11% Online participation

0f pet market

Pet Products Market CAGR

2016-21

Total 3.0%

Online Deliver to Home 5.3%

Online Click and Collect 30.0%

Bricks and Mortar 2.1%

2.7%

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5.12cm

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1.64cm

7.20cm

8.43cm

The vet market continues to consolidate and we are one of three major players with leading market share

Vet Group Retail

7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2014 2016

Mar

ket S

hare

PAH JV CVS Medivet IVC Other

Source: OC&C 2017 and Pets at Home estimates

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Actual Estimated Mature

Mar

ket S

hare

PAH JV CVS Medivet IVC Other

Note: Data refers to calendar years, by estimated revenue per practice.

If all our existing practices were mature, estimated PAH share would be 18%

PAH Vet Group has a 12% market share with a young practice estate

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13.36cm 0.39cm 0.43cm 13.36cm

6.03cm

5.12cm

0.76cm

1.64cm

7.20cm

8.43cm

Strategic overview

8

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13.36cm 0.39cm 0.43cm 13.36cm

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1.64cm

7.20cm

8.43cm

Our Integrated Store: a unique combination of product, services and expertise under one roof

9

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6.03cm

5.12cm

0.76cm

1.64cm

7.20cm

8.43cm

More than just a pet shop … over 28% of customer revenues are spent on Services, with >£260m from our Vet Group

Vet Group Retail

10

28%

72%

Vet and Grooming Services Retail Products

Pet products and services share of customer spend

Vet services include revenues generated by first opinion practices and specialist referral centres .

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Having an integrated product and services offering drives overall customer spend and frequency

Vet Group

11

Store Only Store and Web Store & Web &Groomer

Store & Vet & Web Store & Vet & Web &Groomer

Spen

d pe

r ann

um (£

)

Customer type

Store Vet Online Groom

£490 £339 £76 £- £-

£396 £245 £295 £195 £125

VIP loyalty card data: average yearly spend of product and services customers

34 22 19 11 6 Customer

Transactions per annum

Services spend

Store spend

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Why we are better together

Vet Group Retail

12

A mature store with integrated services delivers an EBITDA uplift of 24% per square foot compared to a

mature store without services

Annual EBITDA £0.3m Annual EBITDA £0.5m

Note: Includes central cost allocation.

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1.64cm

7.20cm

8.43cm

We have invested to integrate services into over 54% of our stores. Few are mature, with significant profit maturity to come.

Retail

13

FY17A FY18E FY19E FY20E FY21E FY22E FY23E

200

15

Note: An integrated store unit is defined as a store which incorporates a first opinion veterinary practice and a groom room

Number of mature integrated store units

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5.12cm

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1.64cm

7.20cm

8.43cm

Our strategy is designed to maximise our competitive position and market opportunity

Price, innovation, services & advice

Vet practice maturity

Optimised Store & Services Rollout

Key Growth Drivers

Driv

ers

of C

ore

Gro

wth

Like For Like

Space

Margin

VIP club members

Omnichannel

Vet Group

Private label mix

14

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6.03cm

5.12cm

0.76cm

1.64cm

7.20cm

8.43cm

Veterinary business

15

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8.43cm

Our core business is first opinion small animal veterinary practices, with recent extension into specialist referral care

16

Vet Group Retail

438 practices at end FY17 289 in-store 149 standalone

Covers all aspects of general small animal veterinary work: preventative care, emergency care, sick pet work Health plans 24/7 out of hours care Extended hours Own brand nutraceuticals

Internal medicine Oncology Orthopaedic surgery Soft tissue surgery Neurology and neurosurgery Diagnostic imaging

First opinion practices Referral centres

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We have a shared ownership model which runs our businesses, creating loyalty & incentivising future growth

17

First Opinion Joint Venture Partners

Specialist Referral Shared Venture Partners

Typical number of partners / practice One Multiple

Equity / capital value entitlement Partner has 100% Key clinicians have 5-25%

Day to day management & influence

JVP. Pets at Home Vet Group provides business services

SVPs & management supported by Pets at Home Vet Group

Impact on Group financials

PAH receive 15-17% of practice revenue plus other management fees, for which we provide business services. In-store practices also pay rent to PAH

Practice revenue, costs & balance sheet are consolidated

Partner share of practice dividend 100% 5-25%

Typical timeframe partner chooses to sell 10 years + Minimum 4 years

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Our first opinion Joint Venture business model is unique in the UK veterinary market

18

JV Partner PAH Vet Group

Own ‘A shares’: Entitlement to profit &

capital gains

Personal loan: c£30k

Own ‘B shares’: Influence on key business decisions to protect Group Corporate loan: c£30k Working capital support

Full salary paid from day 1 (average market rate)

Right to all dividends after repayment of bank loan

Capital gains at exit

Receive fees of 15-17% of practice revenues plus other management fees

Provide all back office functions & specialist business support (these are our operating costs)

Provide working capital support when needed to support practice growth

JV Practice

Commercial Bank

Small business loan: c£320k

Each practice is a separate company, jointly owned by the Vet Group & JV Vet Partner

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Our JV model has allowed us to maintain a strong opening track record and drive market beating growth in mature practices

19 Source: OC&C; Internal data; Annual Reports of Other Corporate Players

Number of first opinion practices in-store (IS) and standalone (SA)

Like-for-like growth of PAH practices compared with the market

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Looking to the future, we have increased our rollout forecast from 700 to 1000 practices

20

Vet Group

Potential UK rollout has grown from 700 to 1000 practices following full review of UK practice potential

All towns/areas assessed based on:

Household numbers

Key demographics

Current vet saturation

Drive times to our existing footprint

Rollout view incorporates analysis from our existing extensive estate

Current UK small animal vet market has c5000 practices

289

149

116 45

401

Existing Retrofit New

550

450 In-store

Standalone

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We have four specialist referral centres and plans for further expansion and rollout to 10-15 across the UK

21 locations of PAH primary opinion practices in-store or standalone

Northwest Veterinary Specialists

Dick White Referrals

Anderson Moores

The Eye Vet

Expansion of existing locations also ongoing and planned:

At Anderson Moores: Facility for radio-iodine treatment of cats with hyperthyroidism added 2016

Expanded from 4 to 8 consult rooms 2017

Expansion from 2 to 3 theatres planned

At Dick White Referrals Future expansion of consultation space and surgical facilities

Extending laboratory facilities

At Northwest & Eye Vet New surgical facilities planned for 2017/18

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13.36cm 0.39cm 0.43cm 13.36cm

6.03cm

5.12cm

0.76cm

1.64cm

7.20cm

8.43cm

<1 Year 1-2 Years 3- 4 Years 5-6 Years 7-10Years

10+ Years

We currently have a young first opinion practice network, where fee income grows significantly as practices mature

22

Maturity of practice estate at FY17 year end

No

prac

tices

Fees to PAH as practices mature

Mature practices

Fees

to P

AH p

er p

ract

ice

<1 Year 1-2 Years 3-4 Years 5-6 Years 7-10Years

10+ Years

Mature practices

c100

c60

c50

c60

c100

c50

Note: Refers to Joint Venture practices only. Does not include any wholly owned Group Venture practices. Fees to PAH represent an annual percentage charge on customer revenue earned by the practice, and fixed management fees

£10k

£95k

£125k

£145k

£185k

£65k

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1.64cm

7.20cm

8.43cm

£0m

£25m

£50m

£75m

£100m

FY17a FY20e FY23e

Fees from new openings & immature practices Fees from Mature Practices

As we roll out towards reaching 1000 practices, our fee income is expected to double

23

Tota

l fee

inco

me

to P

AH

c50% expected increase from current fees

Expected doubling of current fees

Note: Future rollout estimated at 40 practices per annum. Fee income forecasts are based upon the FY17 average fee income for practice cohorts as they age, shown on slide 20 and inflated at c1% per annum. Fees from mature practices includes those aged 7+ years

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5.12cm

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1.64cm

7.20cm

8.43cm

£0

£40,000

£80,000

£120,000

£160,000

£200,000

<1 Year 1-2 Years 3- 4 Years 5-6 Years 7-10 Years 10+ Years

Fees to PAH Incremental PAH costs per new practice opening

The mainly fixed Support Office costs mean that margin leverage is delivered as our first opinion practices mature

24

Incremental costs are additional Support Office colleagues when the practice opens. Colleague costs will then grow at c5% per

annum

Tota

l fee

inco

me

and

cost

s to

PAH

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6.03cm

5.12cm

0.76cm

1.64cm

7.20cm

8.43cm

Overall Vet Group economics: there is an opportunity to significantly increase EBITDA both through maturation and rollout

25

FY17a Current Vet Group (438practices, 4 referral centres)

MATURE Current Vet Group(438 practices, 4 referral

centres)

MATURE Full UK rollout VetGroup (700 practices, 4 referral

centres)

MATURE Full UK rollout VetGroup (1000 practices, 4

referral centres)

FY17a Current Vet Group

438 practices, 4 referral centres

Mature Current Vet Group2

438 practices, 4 referral centres

Mature 700 rollout Vet Group,3

700 practices, 4 referral centres

Mature 1000 rollout Vet Group3

1000 practices, 4 referral centres

1. Mature fee income forecasts for first opinion practices are based upon those for FY17 cohorts aged 10+years – with c1% inflation per annum. EBITDA does not include any central cost allocation for the Executive Management team or Pets at Home Group Head Office support. Referral centre revenue and EBITDA is assumed to remain flat from FY17 actuals

2. EBITDA to PAH assumes no additional colleagues required at Vet Group Support Office to support the existing practice base. Colleague costs are inflated at c5% per annum 3. EBITDA to PAH assumes additional colleagues are required at Vet Group Support Office to support new practice openings. New and existing colleague costs are inflated at c5% per

annum

EBITDA1 to Pets at Home from the Vet Group

c2x Today

Today

>3x Today

c5x Today

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6.03cm

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1.64cm

7.20cm

8.43cm

Retail business

26

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6.03cm

5.12cm

0.76cm

1.64cm

7.20cm

8.43cm

Our immediate strategic focus in retail is based around three key themes: value, competitive advantage and operational leverage

27

Value Competitive Advantage

Operational Leverage

Leveraging the value and quality of our private label

premium foods

Leveraging our points of difference

Driving cost efficiencies

Repositioning prices in branded economy and

Advanced Nutrition foods

Repositioning prices in everyday pet essentials

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6.03cm

5.12cm

0.76cm

1.64cm

7.20cm

8.43cm 100

120

140

160

180

200

220

Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17

We have seen a good response in demand elasticity since repositioning selected dog Advanced Nutrition prices

28

Private label AN volume uplifts are exceeding the deflationary effect

Average price cut c20-30%

And whilst early days we are seeing the same in a branded AN line that we have repositioned

Note: Volumes compare the average uplift since price repositioning with a defined time period before repositioning

Average volume up

>40%

Inde

xed

volu

mes

of d

og A

N p

rivat

e la

bel s

ince

pric

es re

posi

tione

d

Average price cut

c30%

Average volume up

>70%

100

120

140

160

180

200

220

240

260

Apr 17 May 17 Jun 17 Jul 17 Aug 17

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And have made feeding a better diet more accessible than ever by narrowing the pricing gaps

29

Branded grocery food

Private label bridging food

Private label natural Advanced

Nutrition

39p per feed 41p per feed 61p per feed

4% meat* 24% meat* 27% meat*

Price per feed based on medium size dog 10-20kg * Refers to fresh meat and meat meal

Private label science

Advanced Nutrition

68p per feed

37% meat*

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Order in-store is a differentiator that demonstrates the importance of stores and service from colleagues

• Colleagues have direct access to our full online range through their PetPads

• Customer order can be completed in under two minutes

• With the option to collect the product back in-store or be delivered to home

We estimate c70% of Order in-store revenues are incremental

Driven by sales of product lines from the extended online range

30

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6.03cm

5.12cm

0.76cm

1.64cm

7.20cm

8.43cm

Implied monthly spend on treatment

One treatment£4.50

One treatment £6.50

Online price leader*

Multipack x4 £10.29

(£2.57 per treatment)

Multipack x6 £33.99

(£5.67 per treatment)

Note: Pricing is based on the implied monthly spend for a customer with 100% compliance for flea treatments. Based on medium dog 10-25kg. • Excludes any delivery charge

Subscribe & Save gives superior convenience

The success of Subscribe & Save shows how we can leverage colleague advice and convenience

We have narrowed the pricing gap but we are not price leaders

• Pet owners need to treat for fleas every month

• Standard option is to buy a multipack and remember to treat

• Or Subscribe & Save, where a single treatment is delivered to your home as a timely reminder

• We already have c100,000 active plans since launch just over a year ago

31

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1.64cm

7.20cm

8.43cm

Omnichannel performance has been a core contributor to improved Merchandise trading momentum

Omnichannel sales now represent c6% of Merchandise revenues

Q1 FY16 Q1 FY17 Q1 FY18

Online order delivered to home Click & Collect Subscription Order in-store

+54%

+80%

45% 48% 60% % of omnichannel revenues involving a store or colleague

32

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Pet partner for product & services Lifetime loyalty Build trust & love

We have recently launched a Golden Paws initiative aimed at building a long term relationship with new puppy owners

33

Welcome

Average basket value for Golden Paws customers is >30% higher than other puppy customers

The free Advanced Nutrition consultation drives AN participation for Golden Paws customers to double that of other puppy customers

VIP data insights

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Financials

Unless otherwise stated, the comparative period FY16 commentary refers to the unaudited 52 week period to 24th March 2016, to better reflect the underlying performance of the business

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6.03cm

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7.20cm

8.43cm JV vet practices Other services 1

55% 45%

Food Accessories

86%

14%

Pet Services (still immature)

Merchandise

Higher than Group

Lower than Group

Group EBITDA margin hierarchy

Merchandise £716.7m

Services £117.5m

Our statutory financials reflect the Joint Venture veterinary model where we earn a proportion of customer revenue

35 1. Includes revenue from specialist referral vet centres, grooming services revenue, live pet sales in our stores, and insurance income.

Services more profitable than Merchandise Pet services are 14% of revenue

40%

60%

Merchandise Services

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We have continued to show strong Services revenue growth reinforced by positive Merchandise momentum

£m Revenue FY17 Change Q1 FY18

Group Total 834.2 7.2% 256.5 5.0%

Like-for-like 1.5% 2.7%

Merchandise

Food 395.1 3.3% - -

Accessories 321.6 2.4% - -

Total 716.7 2.9% 216.4 2.8%

Like-for-like 0.8% 1.5%

Services

Total income from JV vet practices 47.1 24.6% 16.2 19.7%

Other1 70.4 61.7% 23.9 18.3%

Total 117.5 44.5% 40.1 18.8%

Like-for-like 7.9% 10.5%

1. Includes revenue from wholly owned Group Venture vet practices & other veterinary income, including specialist referrals, grooming salons, live pet sales & insurance commission

Unless otherwise stated, the comparative period FY16 commentary refers to the unaudited 52 week period to 24th March 2016, to better reflect the underlying performance of the business 36

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6.03cm

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54.5% 54.2%

37bps 72bps

Merchandise

Services

Our gross margin progression in Merchandise is offset by the mix impact of fast growing Services

Merchandise

FY16 FY17

57.0% 57.6%

Services

FY16 FY17

33.0% 33.3%

Food including

Advanced Nutrition

Selected pricing actions

FX

Mix shift from

Omnichannel food sales

First opinion vets

Lower pet sales

Specialist referrals

New grooming salons

Group gross margin bridge

54.5% []%

FY16 FY17

Unless otherwise stated, the comparative period FY16 commentary refers to the unaudited 52 week period to 24th March 2016, to better reflect the underlying performance of the business 37

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We have delivered strong cost control whilst investing in profitable growth

14.8%

Group Pre-Exceptional Operating Cost Bridge Excluding D&A, £m

Unless otherwise stated, the comparative period FY16 commentary refers to the unaudited 52 week period to 24th March 2016, to better reflect the underlying performance of the business

£-1.2 £3.0

£3.3

£1.0

£7.0

£8.9

Support Office Distribution Core Stores Omni-channel Vet Group New Stores

£299.3m £321.3m FY16 FY17

Operational Efficiency Investing in Growth

£304.4m

1.7% growth

38

7.3% growth

m m

m

m

m

m

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And will continue to do so as we drive number of simplicity initiatives through the retail business to manage costs

39

Targeting c£5m of cost savings in FY18

Reduction in store hours Energy cost management Simpler distribution

Fewer promotional & ticket changes

Simpler & improved pet care routines

Move manual processes to digital

Customer facing time not impacted

LED lights

Smart energy management systems

Reduce SKU count & promo stocking cycles

Fewer small item goods-out deliveries

Reduce goods-in deliveries

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Our capital expenditure supports growth opportunities

Vet Group Retail

40

4.8 4.4 7.1 14.1 5.3 4.9

10.0

7.2 9.0 13.6

12.9

16.8

10.9 10.3

11.5

6.4

0

5

10

15

20

25

30

35

40

45

50

FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

Cap

ital S

pend

(£m

)

Other including distribution, energy saving and specialist referral vets Business systems and omnichannel Refurbishment and retrofit New stores

£30m

£33m

£42m

£45m £38-40m

Expected run rate

e e e e

£40-42m

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We are efficient in our management of trading working capital, whilst providing support to underpin vet practice growth

Unless otherwise stated, the comparative period FY16 commentary refers to the unaudited 52 week period to 24th March 2016, to better reflect the underlying performance of the business

£m FY16 movement

FY17 movement

Inventories (3.6) (5.0)

Trade payables, other payables and provisions 9.3 11.5

Trade and other receivables 5.8 (1.6)

Trading working capital 11.5 8.2

Operating loans to JV vet practices (6.5) (10.5)

Working capital 5.0 (2.3)

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And we will continue to have good cash generation

1 Includes provisions movement 2 53 week audited financial period

Unless otherwise stated, the comparative period FY16 commentary refers to the unaudited 52 week period to 24th March 2016, to better reflect the underlying performance of the business

£m FY16 FY17 Change

EBITDA 124.7 130.5 4.7%

Non-Cash Share Based Payment Charges 3.0 2.5 Cash EBITDA 127.7 133.0 4.2%

Working capital1 5.0 -2.3

Operating cashflow 132.7 130.7 -1.5%

Tax -14.8 -19.3 30.2%

Interest cost -5.3 -4.2 -21.1%

Capex -34.8 -42.6 22.5% Free cashflow 77.8 64.6 -17.0%

Conversion 62.4% 49.5%

Leverage (ND:EBITDA) 1.3x2 1.2x

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Acquisition and investment capital is being deployed to our Vet Group and is delivering good growth and returns

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Capital expenditure Acquisition capital Working capital

Overall Vet Group delivering LFL customer revenue growth above market and CROIC above the Group average

Specialist referral centre expansion Potential organic development of new referral centres Mezzanine floors in-store to house practices

Specialist referral centres Other vet market assets

Support to First Opinion Joint Venture practices

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Our priorities for use of cash remain focused on growth opportunities

Strong balance sheet Leverage policy up to 1.5x ND:EBITDA, extending up to c1.75x for appropriate acquisitions

Organic investment Ongoing programme currently focused on rollout & omnichannel strategies

Progressive dividend Ordinary dividend policy around 50% of earnings

Invest for growth Disciplined bolt-ons or investment in-line with strategy, aim to deliver returns ahead of our WACC1

Further shareholder returns Surplus FCF returned

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FY20 onwards Services maturity benefits evident

FY19 Transition to positive Group profit growth

Financial outlook: a three year transition to lay the foundations for future growth and realise Services maturity benefits

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FY18 Reposition the Merchandise

business

All financial guidance reconfirmed

Price investment on track

Operational cost savings delivery H2 weighted

Increased working capital support for vet practice growth vs FY17 – overall Group working capital guidance for FY18 remains c£5m outflow

Lower rollout of grooming salons expected at 20-30 practices

On track to deliver FY in line with market expectations

Through the majority of price repositioning

Annualisation of FY18 investment

Potential for further investment in selected areas

Targeting Merchandise LFL above market levels and taking share

Vet Group delivering ongoing high profit growth

Continued operational cost savings action

Continued above market growth in Merchandise

Group operating margin expansion evident and supported by Vet Group maturation

Group profit growth at high single digit levels

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Appendix

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Financial definitions

Like-for-like ‘Like-for-Like’ sales growth comprises total sales/fee revenue in a financial period compared to revenue achieved in a prior period, for stores, online operations, grooming salons, vet practices and referral centres that have been trading for 52 weeks. Free cashflow Free Cashflow is defined as net cash from operating activities, after tax, less net cash used in investing activities (excluding acquisitions), less interest paid & debt issue costs, and is stated before cash flows for exceptional costs CROIC Represents cash returns divided by the average of gross capital (GCI) invested for the last twelve months. Cash returns represent pre-exceptional operating profit before property rentals and share based payments subject to tax then adjusted for depreciation and amortisation. GCI represents Gross Property, Plant and Equipment plus Software and other intangibles excluding the goodwill created on the acquisition of the group by KKR (£906,445,000) plus net working capital plus capitalised rent being property rentals multiplied by a factor of 8x. A multiple of 8 is the industry standard methodology.

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Rollout of 10 superstores, 40-50 vet practices and 40-50 grooming salons

Group gross margin down 100-200 bps

Which includes price investment and year-on-year FX impact

Operational cost growth (excluding depreciation and amortisation) of 4.5-5.5%,

Which includes cost from the step up in National Living Wage and Apprenticeship Levy, new store openings and operational cost savings

Depreciation and amortisation £34–35m, weighted more to the H1

Net interest £4-5m

Effective tax rate 20%

Capital investment c£40-42m – includes the remainder of the one-off energy savings project at £3m

Working capital outflow of around £5m to support vet practice growth

Ordinary dividend payment maintained at least at the prior year level

FY18 guidance

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Accounting treatment of veterinary specialist referral centres

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Ownership of three referral centres

≥75% share owned by Pets at Home

Remaining shares owned by selected clinician Shared Venture Partners (SVPs)

PAH has option to buy SVP’s shares (from 3 yrs + after acquisition)

Accounting requirement is the option is treated as a forward contract

Specialist referral centre ownership is structured to incentivise growth Accounting treatment required

Balance sheet & cashflow

Full consolidation

Income statement

Discounted future value of SVP’s shares recognised as expense over period to exercise on a risk adjusted basis

Non-underlying charge may be up to £2m in FY18