The operational metrics applicable to Laura Carrwere assessed as follows: % of target Measure met Free cash flow 100% Digital sales growth 50% Stock loss percentage 100% Store cost: sales 75% Logistics cost: serve 50% Overall assessment against targets 75% % bonus opportunity earned 9.375% The actual targets and performance for the above measures have not been disclosed as they are commercially sensitive and the Committee considers that it would damage the Company to disclose them. Free cash flow and digital sales growth performance are disclosed elsewhere in this report. STRATEGIC PROGRESS – 25% OF BONUS OPPORTUNITY Progress was measured against the six strategic focus areas described in the FY20 annual report. Assessment was made by reference to performance across the objectives as a whole, with no specific weighting. Overall strategic development Our substantial investments in digital capability and our customer proposition were vital to our success during the pandemic and for our future growth ambitions. Significant additional time spent by Executive Board and Board on strategic planning and development. Increased level of investment awareness and engagement in our strategy and customer metrics. Grow Dunelm profitably Profit growth and digital sales growth significantly exceeded expectations. Win market share and rapidly Digital sales grew by +115% over the year, 760bps ahead of the market, despite loss of share to ‘essential’ grow online digital business retail competitors when stores were closed during lockdowns. Make progress on ESG Rated ‘low risk’ by MSCI and Sustainalytics external ratings agencies, set Scope 1 and 2 emissions reduction targets, supporters of BRC’s Climate Action Roadmap; understanding and ambition developed significantly, progress made on colleague wellbeing, diversity and community engagement. Product Meets expectations – substantial improvements were delivered in the strength of our product offering in terms of range, quality and value, including achievements in product development, launched paint and wallpaper range, ‘The Edited Life’ (sustainable) range and developed furniture supply base. Customer Meets expectations – good customer experience despite the challenges of the Covid-19 pandemic. A robust five-year activity plan in place and successful enhancements to digital marketing capability. Digital sales Exceeds expectations – unprecedented growth in our digital sales and delivered significant technical enhancements to Dunelm.com, pivoted to support a kerb-side Click & Collect offer, implemented centrally fulfilled Click & Collect offer. Sustainability Meets expectations – Set Scope 1 and 2 emissions reduction targets, supporters of BRC’s Climate Action Roadmap; understanding and ambition developed significantly, progress made on colleague wellbeing, diversity and community engagement. Delivery Exceeds expectations – implemented post-sale customer experience strategy, capacity plan being implemented, managed significant operational challenges without losing strategic focus. Operations Meets expectations – programme to improve end-to-end process capabilities agreed, progress made on internal controls, supply chain capacity expansions planned. Based on the above, the Committee considered that strong strategic progress had been made both overall and across all six focus areas, and expectations were exceeded in key profitability and customer measures. It therefore assessed that 80% of the strategic progress targets had been met by each of Nick and Laura, which earned 20% of total bonus opportunity. DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021 157 GOVERNANCESTRATEGIC REPORT FINANCIAL STATEMENTSOTHER INFORMATION