Tesco Investor Presentation — October 2018

Document content

Alan Stewart–CFOAgenda .

•Six strategic drivers

•Creating value for our four key stakeholders1H results .

Positive sales growth1Strong profit growth2Strong retail cash generation3Group performance

1H 17/18 1H 18/19+12.8%

1H 17/18 1H 18/19(1.4)%

1. Group sales growth at actual rates on a comparable days and a continuing operations basis and includes an adjustment to last year’s figures to reflect a change in the reporting of consignment sales.

2. Group operating profit before exceptional items and amortisation of acquired intangibles on a continuing operations basis.

3. Retail cash generated from operations on a continuing operations basis.

Note: All prior year numbers and growth rates above do not include Booker in the base. Last year figures restated for impact of IFRS 15.£750m£933m

1H 17/18 1H 18/19+24.4%More customers shopping with us1UK & ROI performance

Continued focus on food Improved profitability£464m£685m

1H 17/18 1H 18/19+47.6%

1. KantarWorldpanel UK data for the 52 weeks ending 9 September 2018.(4.8)%

GM LFL +189,500£464m

1H 17/18Price Volume and

1. Before exceptional items and amortisation of acquired intangibles.UK & ROI

•Booker consolidated from 5 March 2018

•Continued strong LFL sales performance;

•Improved profitability:

–1H margin +56bps YoY

–£171m saved through cost savings plan

•Closed Tesco Direct in July

–1H 18/19 sales: £92m; £(23)m lossOperating profit and margin1

£685m2.10%Strong sales Profit contribution

(pre-synergies)Synergies on trackUK & ROI -Booker

1H 17/18Price Volume and

inflation/otherCentral

1H 18/19Central Europe