CEO’s review We have renewed purpose, bold ambitions and an increased opportunity to attract more customers CUSTOMER INSIGHT and grow their frequency. We aim to be our AND MARKET TRENDS customers’ 1st choice for home, helping everyone to create the joy of truly feeling at home, now We are developing our data and insight and for generations to come. Our business plans capabilities to understand our customers will deliver for all our stakeholders, and include even better and using this information to our commitment to a Net Zero Pathway, with an deliver analysis-driven decisions to improve absolute reduction in emissions of 50% by 2030. our overall proposition – products, services and experiences. Consumer trends are Whilst the macro-outlook remains uncertain summarised below, and key market drivers and fast changing, with ongoing risks relating to and our market focus opposite. Covid-19, supply chain disruption and inflationary pressures from raw materials, freight costs and driver shortages, we feel we are well-placed relatively to manage these challenges. We Increasing focus on the home, continue to focus on what we can control – namely from functional needs to maintaining good stock levels and mitigating cost ‘wholesome’ home-making pressures, working closely with our long-term committed suppliers and partners. Current trading Digital channels embraced Sales growth in the first ten weeks of the new by existing and new financial year has been encouraging, including a customers positive response from customers to our Summer Sale in July and continued outperformance versus the homewares market.11 This strong start to the year, showing further growth against a tough comparative period, has been better than Increasing preference for anticipated. In the absence of any further trading out-of-town shopping restrictions, the Board now expects that FY22 PBT will be modestly ahead of the top of the range of latest analysts’ expectations.12 Nick Wilkinson Increasing engagement with Chief Executive Officer friendly digital content 8 September 2021 Growth of community connections and support for local action Increasing desire for more sustainable living 11. Homewares market (excluding Dunelm) calculated using GfK data and management estimates. Dunelm growth for comparable categories. 12. Management understands the range of analysts’ estimates (which have been updatedsince the Q4 trading statement on 14 July 2021) for FY22 Profit Before Tax is £153-£175m. 26 DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021 colo u crus, sftGoambireviircsns gca honoudi rc set y-le