Director/PDMR Shareholding

NOTIFICATION DEALING WITH GRANT OF AWARDS UNDER THE PLAN

Dixons Carphone plc (the "Company")

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them in accordance with the Market Abuse Regulations.

Awards under the Dixons Carphone plc Long Term Incentive Plan 2016

On 19 August 2020, the following awards over ordinary shares of 0.1 pence in the Company ("Ordinary Shares") were granted under the Dixons Carphone plc Long Term Incentive Plan 2016 ("LTIP"):

The share price for the Awards (each a nil cost option) was calculated using the mid-market price on the 10 July 2020, being 87.05p. 

Calculation of the number of Shares subject to an Award

As was described in the 2020 Directors' Remuneration Report, the Remuneration Committee determined it appropriate to scale back the number of shares awarded this year to the Executive Directors from the normal award level of 250% of salary.  This decision was taken in light of recent falls in the share price, both prior to and since the onset of the Covid-19 pandemic, and in response to shareholders' feedback on this matter last year; however we also took into account the strong recovery in the share price since last year's award was made and up to the onset of the pandemic.  Based on this evidence, the Committee determined that Executive Directors' awards should be scaled back by 20% (i.e. to 200% of salary).

The Committee chose to delay the grant of these awards to allow time for a clearer picture to emerge on our emergence from lock-down and to gauge the market expectation of the long-term performance of the business.  In order to ensure that this delay did not result in an undue benefit or penalty to participants, the Committee set the number of shares to be awarded under the LTIP using the share price on 10 July 2020 (87.05p).   It re-confirmed this decision on the day prior to grant (being 18 August 2020) when targets were set, noting that the share price had not moved significantly in the meantime, closing on that date at 87.00p.

The number of Ordinary Shares stated above is the maximum number that could vest to each PDMR upon full satisfaction of the performance conditions attaching to the Awards.

The Awards will ordinarily vest and become exercisable on 19 August 2023 (the "Vesting Date"), subject to each PDMR's continued service with the Company and the extent to which the performance conditions applicable to the Awards are achieved. In the case of the awards granted to Alex Baldock and Jonny Mason, any Ordinary Shares which vest will be subject to an additional two-year holding period (on a net of tax basis) from the Vesting Date.

The performance conditions applicable to the Award are two equally weighted performance measures:

1)      Relative Total Shareholder Return ("TSR")

One half of each Award is subject to the achievement of a relative TSR performance condition, measured against a bespoke comparator group comprised of 21 European Special Lines Retailers and other comparable companies. The starting point for measurement will be 3 May 2020 and the closing point will be 1 May 2023 with one month averaging periods up to the beginning and end of the performance period. 25% of this portion of the Award will vest for achievement of median TSR versus the comparator group, with maximum vesting at upper quartile or above and straight-line vesting between these two points.

2)      Cumulative Free Cash Flow

The other half of the Award is subject to the achievement of a performance condition measuring the Company's cumulative free cash flow over the three-year period starting on 3 May 2020 and ending on 1 May 2023. 10% of this portion of the Award will vest if cumulative free cash flow over the three-year period is £312m, rising to 25% of this portion of the Award vesting if cumulative free cash flow over the three-year period is £368m, and with maximum vesting if cumulative free cash flow over the three-year period is £423m or higher, and straight-line vesting between these points.

As at the date of this announcement, the Company has 1,166,458,443 Ordinary Shares in issue.

Details of the full notifications received by the Company are set out below.

This announcement is made in accordance with the requirements of Market Abuse Regulation Article 19. 

Enquiries:

Sarah Thomas    Deputy Company Secretary     +44 (0)7401 373 188

Dan Homan       Head of Investor Relations      +44 (0)7401 400 442