Settlement of Belgian Tax Matters/COVID-19

Date: 24 April 2020

FRASERS GROUP PLC

("Frasers Group" or "Company")

SETTLEMENT OF BELGIAN TAX MATTERS/COVID-19

Further to its announcement of 30 January 2020, Frasers Group has now successfully resolved all remaining matters referred to in the "proces verbal" together with a number of other historic tax matters by reaching a commercial settlement with the Belgium Tax Authority. No material sums of tax or penalties are due to be paid in Belgium by Frasers Group as a result of the settlement.

Frasers Group has taken the commercial decision to settle these matters now given the uncertainty is affecting Frasers Group's banking lines and its suppliers' credit insurance where, due to store closures as a result of the current Covid-19 crisis, Frasers Group understands the majority of new credit insurance cover has been withdrawn for the time being. Frasers Group would also note that it has currently not been accepted as eligible for the Covid Corporate Financing Facility (CCFF). 

For the avoidance of doubt, the €674m of disputed VAT including penalties within the "proces verbal" has been fully and finally settled for an immaterial amount.

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