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Feb 14, 2024 •115 likes •426 views

Welcome to your AGM 1 John Allan Chairman Serving Britains shoppers a little better every day. 16 June 2017 Dave Lewis, Group Chief Executive 3 Agenda. A year of strong performance Our six strategic drivers 1Q update

  1. Welcome to your AGM 1

  2. John Allan Chairman

  3. Serving Britain’s shoppers a little better every day. 16 June 2017 Dave Lewis, Group Chief Executive 3

  4. Agenda. • A year of strong performance • Our six strategic drivers • 1Q update • Unlocking new growth 4

  5. A year of strong performance. +4.3% +30% +9.1% £49.9bn £47.9bn £2.3bn £1,280m £2.1bn £985m FY 15/16 FY 16/17 FY 15/16 FY 16/17 FY 15/16 FY 16/17 Positive sales growth Strong profit growth Strong cash generation 5

  6. A year of strong performance – UK. +1.6% +1.7% +140,000 Volume-based recovery Transaction growth Increasing footfall 6

  7. A year of strong performance – Better service. “I don’t queue” 129,635 80% hours FY 14/15 FY 15/16 FY 16/17 Tesco Big 4 Speed of service Record helpfulness Colleagues closer to customers 7

  8. A year of strong performance – Record availability. Food stock Evening availability £935m £836m 96% £755m FY 14/15 FY 15/16 FY 16/17 FY 14/15 FY 15/16 FY 16/17 Tesco Big 4 Sales-based availability Clearer backrooms Available at all times 8

  9. A year of strong performance – Price. 6% 36% 32% 15% lower Lower prices Fewer promotions Depth of promotions 9

  10. A year of strong performance – Right range. +7% +3% 7% cases Further range reduction Further increase One touch replenishment in own label space 10

  11. A year of strong performance – A great place to work. +7 NPS 83% 81% 70% 65% FY 14/15 FY 15/16 FY 16/17 FY 15/16 FY 16/17 Engaged colleagues A simpler job A great place to shop 11

  12. A year of strong performance – Supplier partners. +27% +30% +19% 74% 74% 67% 66% 63% 55% 49% 44% 36% FY 14/15 FY 15/16 FY 16/17 FY 14/15 FY 15/16 FY 16/17 FY 14/15 FY 15/16 FY 16/17 Simple, transparent & Communicates well & Treats me fairly easy to deal with available when needed 12

  13. A year of consolidation – International. Asia +4.0% +0.5% Europe +0.5% Volume growth Sales growth Portfolio simplification 13

  14. Our six strategic drivers. 1. A differentiated brand 2. Reduce operating costs by a further £1.5bn 3. Generate £9bn cash from operations 4. Maximise the mix to achieve a 3.5% – 4.0% Group margin 5. Maximise value from property 6. Innovation 14

  15. Our six strategic drivers – Progress. • YouGov most improved brand 1. A differentiated brand • £226m of cost savings 2. Reduce operating costs by £1.5bn • £2.3bn retail cash generation 3. Generate £9bn cash from operations • Group operating margin 1.8% to 2.3% 4. Max the mix to achieve a 3.5%-4.0% Group margin • Released £0.5bn value 5. Maximise value from property • 2,422 new products 6. Innovation • PayQwiq • Free From Retailer of the Year 15

  16. 1Q update.

  17. Like-for-like performance. +1.0% +2.2% (3.0)% Group UK & ROI International 17

  18. Strong fresh food growth. 2.7% +1.6% +5.3% Like-for-like sales UK fresh food volumes ROI fresh food volumes growth in food 18

  19. Food Love Stories. 19

  20. Helping customers – Value. 20

  21. Helping customers – Health. Charity Round Up Awareness – Move – Little Swaps Free health checks 6.6 million miles 21

  22. 22

  23. Consistent tangible progress. Cash Sales Profit Customer Colleague Supplier For satisfaction engagement partners shareholders 23

  24. Britain’s favourite supermarket – third year running. 24

  25. Unlocking new growth. 25

  26. The UK’s leading food business. CUSTOMER PRODUCT CHANNELS Fresh Packaged GM Clothing Professional In home Improved choice / range Large stores Enhanced volume for efficiency EXISTING Small stores e.g. full crop utilisation Online Out NEW Wholesale of home Incremental to standalone 3.5% - 4.0% margin ambition 26

  27. The UK’s leading food business. At least At least 9x EV/EBIT £175m £25m inc. synergies Growth Synergies Multiple 27

  28. Summary. • Full Year Results ahead of our expectations 30% increase in Group operating profit before exceptional items • 60% increase in UK & ROI operating profit before exceptional items • • Strong momentum in 1Q • Continuing to deliver on our six strategic drivers • Creating long-term value for all our stakeholders • Well-placed in a challenging market environment • Proposed merger with Booker unlocks new growth and creates new volume 28

  29. Thank you. 29

  30. Voting 30

  31. Q&A 31

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