Proposed acquisition of Courir for an enterprise value of €520m from private equity Equistone Partners. Completion is dependent on receipt of merger control approval from the European Commission and is expected to complete in 2H. The cash cost will be €325m, with net debt of €195m expected to be refinanced. For the 52 weeks ending 31 December 2022, Courir had consolidated revenues of €609.8m, EBITDA of €63m and EBIT of €47.4m. This equated to a reasonable historic EV/EBITDA 8.3x. Courir operates 313 stores across 6 countries (see page 2) with its main exposure being in France (191 directly owned stores + 66 affiliate stores) where the Group already has 115 JD stores. Courir is regarded as a more female friendly offer which complements the JD brand. Courir is expected to be run autonomously from JD’s French operations, with the Courir brand retained as well as its operational infrastructure. Discussions over the future ownership of ISRG has been triggered by the minority owners of the Iberian Sports Retail Group. Balaiko Firaja Invest (the Segarra family) and Sonae collectively own 49.98%. There are 3 possible outcomes, with a clearer view on the likely outcome in the summer. The 3 outcomes are 1) The Group could acquire the remaining minority; 2) The minority parties buy the Group’s 50.02% holding of ISRG and the Group simultaneously acquires the Minority parties’ interest in JD across Iberia; 3) No change in ownership structure. We illustrate overleaf (pages 2 and 3) an estimate of the P&L and cash impact of options 1 and 2. Buyout of the remaining 20% German minority has been announced. This deal will have a de minimis impact on earnings given low German profitability. No change to forecasts at the moment until Courir completes and the outcome of ISRG talks are clearer. Next news – FY23 results on 17th May.