# Gender Pay Gap Report 2017

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1 01 Gender Pay Gap Report 2017

3 03 Measuring the gap The gender gap is defined as the difference between the median and mean hourly rates of that men and women receive. When is ordered from lowest to highest, the median is defined as the rate found at the midpoint. The mean is the average rate of across all employees. How we calculate the median difference lowest hourly median hourly highest hourly How we calculate the mean difference number of male employees = mean male average Gender is different to equal, which relates to what women and men are paid for the same or similar jobs, or work of equal value. the difference median hourly gap = the difference mean hourly gap = Our calculations Under new legislation that came into effect in April 2017, UK companies are required to publish their gender gap for all legal entities with more than 250 employees. We employ over 20,000 people in hundreds of different roles, each of which will have different rates of. Shows the difference between the employee in the middle of the line from highest to lowest hourly rate of in each gender group number of female employees = Shows the difference in average hourly rate of between men and women. mean female average

4 04 Understanding our gap There are more women than men in our lower paid roles but proportionately fewer in higher paid ones - this is the main reason for our gender gap. We have over 15,000 sales assistants, accounting for more than 75% of our total workforce. The gender gap amongst this population is less than 1%. Pay - Hourly Rate Difference between men and women Median 2.5% Mean 24.7% Pay Quartiles Pay quartiles are calculated by listing the rates for all employees from lowest to highest, before splitting them into four equal-sized groups. The proportion of male and female employees that appear in each group is then calculated. Lower Quartile Lower Middle Quartile Upper Middle Quartile Upper Quartile We have proportionately fewer women working in roles in our professional services functions such as IT, Property, Logistics and Finance areas that traditionally attract a higher rate of. As an example almost 80% of our IT employees are male. Bonus Pay Percentage of employees who received a bonus. 14% 12% 18% 82% 15% 85% 17% 83% 26% 74% Bonus difference between men and women Median 0% Mean 55.7% All of our bonus schemes are gender neutral by design. However, a small number of high bonus ments have had a significant impact on our gender bonus gap.

5 05 Statutory disclosure As referenced previously, although we operate as one organisation, we have two separate employing entities - Arcadia Group Limited and Topshop/Topman Limited. As both have more than 250 employees within Total Organisation Gender Pay Gap 2.5% 24.7% Proportion of employees receiving a bonus Male Female 14.0% 12.0% the UK, we must report their data separately. Topshop/Topman Limited recorded a gender gap of just 2.2% which is well below the national average of 17.4%*. The figures listed below for Arcadia Group Limited Arcadia Group Limited Gender Pay Gap 8.0% 37.6% Proportion of employees receiving a bonus Male Female 8.5% 10.4% are impacted by the fact that all of our support functions (including those for Topshop/Topman Limited) sit within this employing entity. Topshop/Topman Limited Gender Pay Gap 1.9% 2.2% Proportion of employees receiving a bonus Male Female 17.4% 18.0% Gender Bonus Gap 0.0% 55.7% Gender Bonus Gap 4.6% 76.5% Gender Bonus Gap -34.9% 24.4% Proportion of employees in each quartile Pay Quartile Male Female Lower 18% 82% Lower Middle 15% 85% Upper Middle 17% 83% Upper 26% 74% Proportion of employees in each quartile Pay Quartile Male Female Lower 16% 84% Lower Middle 10% 90% Upper Middle 11% 89% Upper 27% 73% Proportion of employees in each quartile Male Female Lower 23% 77% Lower Middle 23% 77% Upper Middle 27% 73% Upper 23% 77% *Based on estimates from ASHE survey 2017

6 06 Closing the gap There are key areas throughout our business where we are encouraging women to progress their careers. We continue to support women to progress to senior leadership roles especially within areas such as IT, Finance, Digital and Logistics where the male/female ratio is traditionally less balanced. We are always seeking new ways to improve how we attract, develop and retain women. Some of our key initiatives are highlighted below. Flexible job design Mobility Female returners Leadership development Flexible working practices are already in place for many women at all levels of our organisation. These flexible practices include part-time working, working from home and job sharing where appropriate. Employees are actively encouraged to explore and benefit from the mobility that comes with being part of a group of eight brands. We aim to promote from within and we proactively create opportunities in order to retain women within our brands (e.g. offering project work and secondments to allow them to find - and try - the right role for them). We aim to recruit from the widest possible talent pool and make every effort to stay in touch with talented women who have been previously employed by us. As a result, many return in new roles, in project roles or on an associate basis after having families or career breaks. We provide training, coaching and mentoring for women at all stages of their careers to support their development as leaders. In addition, we continue to partner with Women in Retail on both their emerging and established leadership activity.

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