Tesco Investor Presentation — April 2018

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Alan Stewart–CFO2Agenda .

•Six strategic drivers

•Four key stakeholders

•Looking ahead and BookerFY results .4

Positive sales growth1Strong profit growth2Strong retail cash generation3A year of progress

FY 16/17 FY 17/18+2.3%

FY 16/17 FY 17/18+21.7%

1. Group sales growth at actual rates on a comparable days and a continuing operations basis.

2. Group operating profit before exceptional items on a continuing operations basis.

3. Retail cash generated from operations on a continuing operations basis.£1,280m£1,644m

FY 16/17 FY 17/18+28.4%5

Emphasis on fresh food

volumesMore customers

shopping with us1Improved profitabilityUK performance

1. Kantar data for the 52 weeks to 25 February 2018.+260,0006£803m

FY 16/17Price Volume and

programmeCost inflation/

1. Before exceptional items.

2. Data is for the 52 -weeks ending 25 February and is sourced from IRI Retail AdvantageTM, global insight providers to the retail industry. IRI market definition excludes Aldi and Lidl.UK & ROI

–>2% LFL in every quarter; 2.4% in 4Q

–UK fresh food volume up 0.7%,

outperforming the market by 1.7%2

–Own Brand increased to 51% of sales

•Improved profitability:

–£404m saved through cost savings plan

–2H operating margin strengthened to 2.5%

•£1.9bn cash generated from operationsOperating profit and margin1

1.8% 2.3%£1,053m7Central Europe

FY 16/17Price Volume and

inflation/otherCentral Europe

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