Annual Report 2009

125 years of Quality, Value, Service, Innovation and Trust

Quality worth every penny

Annual report and financial statements 2009

What’s in this report? Table of contents

About Us See under flap for the M&S Overview

Directors’ report
ifc About M&S and Highlights

Overview 1 10 12 12 Our Plan for the future by Sir Stuart Rose Executive Committee Deputy Chairman’s Statement Board of Directors

Performance & KPIs 14 18 Managing through the recession by Ian Dyson Our key performance indicators

Brand & Marketplace 20 22 25 Our brand Our marketplace Our heritage

Operating & Financial review 26 1. Our core UK business Womenswear Lingerie Menswear Kidswear Food Home 2. M&S Direct 3. Our International business 4. UK property 5. Plan A Our people Financial review

36 38 40 42 46 48

Governance 50 62 72 Corporate governance Remuneration report Other disclosures

Financial statements and other information
77 Independent auditors’ report to the members of Marks and Spencer Group plc

Financial statements 78 78 79 80 81 112 112 113 113 114 116 118 119 ibc Consolidated income statement Consolidated statement of recognised income and expense Consolidated balance sheet Consolidated cash flow statement Notes to the financial statements Company income statement Company balance sheet Company statement of changes in shareholders’ equity Company cash flow statement Company notes to the financial statements Group financial record Key performance measures Shareholder information Index

How have we done? Highlights from the past year

Group revenue

£9.1bn +0.4%
UK 90.1% International 9.9% Adjusted Group operating profit GM 50.1% Food 49.9% Adjusted Group profit before tax

£768.9m -29.4%
Group gross margin

£604.4m -40.0%
Average weekly footfall

37.2% -1.4% pts
Interim + final dividend

21.6m

Adjusted earnings per share

8.3p+9.5p=
Total dividend 2008/09

17.8p
For all our full and detailed key performance indicators See p18... [continues]

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