(...Continued from page 14)

3 Risks and uncertainties

The principal and other significant risks and uncertainties affecting the group were identified as part of the Business Review, set out on pages 24 to 26 of the John Lewis Partnership Annual Report and Accounts 2011, a copy of which is available on the group’s website www.johnlewispartnership.co.uk. These risks remain relevant for the second half of the current financial year and comprise: economic; financial; pensions; input cost inflation; human resources; customer offer; health and safety; business continuity and disaster recovery; regulatory; political; fraud; compliance; and operational.

4 Segmental reporting

The group’s operating segments have been identified as Waitrose, John Lewis and Corporate and other. Corporate and other principally includes corporate and shared services overheads, transformation costs and the new Partnership Services division set up costs. The operating profit of each segment is reported after charging relevant corporate and shared service costs based on the business segments’ usage of corporate and shared service facilities and services.

Waitrose’s business is not subject to highly seasonal fluctuations although there is an increase in trading in the fourth quarter of the year. There is a more marked increase in the fourth quarter for the John Lewis business.