1. The Carphone Warehouse Interim Results 2003 4.11.03

2. First Half Review Charles Dunstone, CEO

3. Financial highlights 66.7% growth in Turnover (ex Wholesale) to £723.3m Organic growth of 23.7% 68.8% growth in pre-tax profits to £20.3m 61.1% growth in earnings per share to 1.74p 15.5% LFL retail revenue growth and 10.1% LFL retail gross profit growth 62% of group contribution from recurring revenues Interim dividend of 0.4p per share

4. Retail 1,175 stores with 35 net new stores opened year-to-date Now targeting 80 for full year 21.0% growth in revenues to £401.2m 12.6% growth in contribution to £27.3m Total connections growth of 16.4%, subscription growth of 20.8% Ongoing revenues up 52.5% to £19.4m

5. European footprint Sweden Retail - 53 stores Insurance Ongoing Czech Republic Retail - 19 stores Switzerland Retail - 24 stores Insurance Ongoing Portugal Retail - 46 stores Insurance Ongoing France Retail - 171 stores Insurance Ongoing FMS – 600k customers UK Retail - 486 stores Insurance Ongoing MVNO – 175k customers FMS – 458k customers Fixed line Ireland Retail -30 stores Insurance Ongoing Spain Retail - 142 stores Insurance Ongoing The Netherlands Retail - 84 stores Insurance Ongoing Belgium Retail - 40 stores Insurance Ongoing Germany Retail - 80 stores Insurance Ongoing SP - 649k customers Total customers under management : 1,882k

6. Telecoms Services - Fixed 94.8% growth in switched minutes, year-on-year Opal has a c. 20% market share of net new CPS lines each month Opal’s share of CPS marketOpal switched minutes Minutes (millions)

7. talktalk talk70™ still the cheapest Activity in H1: 140,000 customers c.50 million calls 216m minutes >£2m savings over BT Figures based on average talk70 bill for July 2003. Assumes full Calling Circle take-up. £ Monthly ARPU

8. Financial Performance Roger Taylor - CFO

9. Group Turnover £825.5m £861.2m Summary performance (£m) 66.7% growth in turnover (ex Wholesale) 65.8% growth in EBIT 107.4% growth pre talktalk losses £22.1m £13.3m Group EBIT

10. Distribution £mH1’03H1’02% Change Turnover482.9393.022.9% Contribution60.147.027.8% Support Costs(28.3)(26.7)5.9% EBITDA31.820.356.4% Depreciation(14.5)(12.4)17.3% EBIT17.37.9117.4% EBIT %3.6%2.0%

11. Retail £m H1’03H1’02% ChangeLFL % Turnover401.2331.621.0%15.5% Gross Profit119.7104.115.0%10.1% Gross Margin %29.8%31.4% Direct Costs(92.4)(79.9)15.7% Contribution27.324.212.6% Contribution %6.8%7.3%

12. Mix improved to 47.4% from 45.7% Subscription connections growth of 20.8%, 24.0% in Q2 Average connections per store rose by 13.3% from 1,639 to 1,857 1,922 2,238 Group connections (000’s)

13. Revenue & gross profit per connection Average Revenue per Connection RPC in subscription and pre-pay has risen Upgrade mix has had an effect on subscription gross profit Mix now stabilising Increasing switch to Ongoing Average Gross Profit per Connection

14. Upgrades mix Mix has moved from c. 30% upgrade to 40% in H1 03, but stabilised in Q2

15. 35 net new stores opened year to date Opening programme accelerating in coming months Shortage of sites at reasonable rents Figures include 15 franchise stores (H1 2002: 6 franchises) No. of stores at period endAverage selling space for period (metres) Sales per sq m (£) Retail platform

16. Online Strong subscription mix Margin impact of affinity deals £mH1 ‘03H1 ‘02% Change Connections (000s)13411913.1% Turnover26.519.734.5% Contribution1.61.415.3% Contribution %6.1%7.1%

17. Insurance Customer base grew by 12.8% Continuing strong growth in non-UK base Contribution margin improving from better claims trends Average annual premium rose 10% to £66 Third party opportunities £mH1 ‘03H1 ‘02% Change Turnover35.829.023.4% Contribution11.88.735.9% Contribution %32.9%29.9% Customers (000s)

18. Ongoing Strong performance driven by subscriptions growth and increasing trend towards ongoing agreements Anticipating H2 flat on H1 H1 assisted by market share triggers £m H1 ‘03H1 ‘02% Change Turnover & Contribution19.412.752.5%

19. Retail/Online/Ongoing combined performance Strong growth in ongoing offsetting the margin reduction in Retail Ongoing a higher quality earnings stream £mH1 ‘03H1 ‘02% Change Turnover447.1364.022.8% Gross profit144.6121.219.2% Gross margin %32.3%33.3% Contribution48.338.325.9% Contribution %10.8%10.5%

20. Wholesale New laws on joint and several VAT liability have curtailed activity Now unlikely to re-enter wholesale trading market in foreseeable future Voucher distribution and trade-in handset businesses continue £mH1 ‘03H1 ‘02% Change Turnover102.2427.5(76.1)% Contribution1.05.1(80.7)% Support Costs(1.1)(0.9)18.5% EBITDA(0.1)4.2n/a Depreciation(0.6)(0.4)34.7% EBIT(0.7)3.8n/a EBIT %(0.7)%0.9%

21. Telecoms Services £mH1 ‘03H1 ‘02% Change Turnover240.540.8489.7% Contribution17.87.1150.9% Support Costs(7.8)(3.8)107.3% EBITDA10.03.3199.8% Depreciation(4.5)(1.7)158.3% EBIT5.51.6245.3% EBIT %2.3%3.9%

22. Telecoms Services - Mobile £mH1 ‘03H1 ‘02% Change Turnover128.240.8214.4% Ex-Hutchison47.340.815.9% Contribution9.87.138.2% Ex-Hutchison6.07.1(15.3)% Contribution %7.7%17.5% Hutchison performing ahead of expectations so far Good SAC and ARPU trends Underlying profitability affected by loss of SFR base in March

23. Telecoms Services - Mobile: Customers (000s) Good organic growth in Voda/O2 base

24. Telecoms Services - Fixed: Opal £mH1 ‘03H1 ‘02% Change Turnover105.8-- Contribution13.6-- Contribution %12.8%-- Outstanding performance since acquisition Year-on-year revenue growth of 52.4% Contribution margin ahead of expectations Capex budget raised to accelerate network build-out

25. Opal target markets Directly Billed Customers Represents 60% of Opal contribution (62% 2002) New connections come from a sales force of over 80 Corporate and SME focus Offer differentiated products Reseller Customers Represents 32% of Opal contribution (27% 2002) Over 150 active resellers Resellers choose Opal for network efficiency, pricing and support Premium Rate Services

26. Are margins sustainable? The market is competitive and there will always be pressure on prices Opal’s margins have remained constant – why? Opal continues to extend network interconnect into BT’s network, aiming to have 40% of calls through local exchanges by ‘03/04 and 70% by ’04/05 Local exchanges are 27% cheaper than trunk exchanges Opal benefits from the annual determination of BT termination rates by Oftel BT cannot make selective offers to preferred customers

27. Telecoms Services - Fixed: talktalk £mH1 ‘03H1 ‘02% Change Customers140,000 Turnover6.4-- Gross profit2.9-- Gross margin (%)45.3%-- Operating profit1.8-- Operating margin (%)27.8%-- SAC and marketing(7.3)-- Contribution(5.5)-- SAC per customer £18.3 – expected to rise in H2 talktalk expected to reach break even runrate by March 2004

28. Contribution from recurring revenues (£m) Recurring revenues accounted for 62% of group contribution in H1,up from 48% in H1 2002

29. Non-UK contribution (£m) 43% organic growth in non-UK contribution

30. Reconciliation to headline PAT and EPS £mH1 2003H1 2002% Growth Total Contribution78.959.333.1% Support Costs(37.2)(31.4)18.5% EBITDA41.727.949.6% Depreciation(19.6)(14.6)34.7% Interest(1.8)(1.3)38.5% Normalised PBT20.312.068.8% Tax(5.1)(3.0)68.7% Profit After Tax (PAT)15.29.068.9% Headline EPS1.741.0861.1% Exceptional items(4.7)13.2

31. Cash Flow (£m) £mH1 2003 £mH1 2002 £m EBITDA41.727.9 Working capital, tax and interest(8.9)(55.4) Capex (ex new stores)(14.5)(11.7) Free cash flow18.3(39.2) New store capex(3.6)(4.3) Acquisitions(31.0)(0.1) Support Centre-36.6 Dividends(8.7)- (25.0)(7.0) Opening funds29.134.6 FX movements(1.2)- Closing funds2.927.6

32. Summary 67% growth in turnover driven by 20% subscription growth 32% growth in sales per sq. ft over last 2 years Operational leverage in Retail and Opal Recurring revenues at 62% of group contribution and 71% up year on year talktalk demonstrating strong pre-SAC operating margin European contribution growth of 64.6% 61% growth in headline EPS Operating cash flow generation of £36.6m vs £30m outflow last year

33. Outlook

34. Handset market Nokia 6600 Nokia 7600 Sony Ericsson P900 Samsung P400 Motorola MPX200

35. Competition is intensifying Christmas ‘02Christmas ’03 Cheapest pre-pay£69.99£39.99 Cheapest pre-pay colour£199.99£69.99 Nokia 7210 on postpay£99.99FREE Integrated camera phone £99.99 on postpay £99.99 on pre-pay Inclusive x-net minutes on £25 tariff100500

36. Handsets could be in short supply Possible Promised Confirmed / In stock Xmas 2003 (Blowout)Expected Xmas 2003Xmas 2002

37. Appendices

38. 1,922 2,238 Group connections (000’s) 1,537

39. Connections by country (000s)

40. Store data Country UK Belgium Czech Republic France Germany Ireland The Netherlands Portugal Spain Sweden Switzerland March ’03 475 41 19 169 81 29 80 44 130 51 21 Opened 21 - 4 8 1 4 15 3 Closed/Relocated (10) (1) - (2) (9) - (2) (3) (1) - Sept ’03 486 40 19 171 80 30 84 46 142 53 24 Total1,14063(28)1,175