Key performance indicators

The Group tracks its performance using 2 operating key performance indicators (“KPI”s), 3 financial KPIs and 4 funding targets that the Board believes are key indicators of its progress against its strategic and financial targets. In addition, the Group has a number of guidance measures at a group, divisional and business level, details of which are set out in the business and finance reviews on pages 24 to 37. In 2014, in order to ensure greater consistency throughout the Group, the Group’s KPIs were reviewed and an additional 3 funding targets were included.

Operating Key Performance Indicators ("KPIs")

Like-for-like sales growth 2.7%

Adjusted operating profit £409m

Financial Key Performance Indicators

Lease adjusted return on capital employed 10.9%

Adjusted earnings per share 120.4 (p)

Free cash flow £394m

Funding Targets

Dividend cover 2.7 times

Fixed charge cover 3.3 times

Leverage ratio 2.7 times

Net debt £378m