Tesco Plc · LSE:TSCO
Tesco — Q1 2020/21 Earnings Presentation
11 slides from Tesco's earnings presentation, June 2020
Slide 1: A little help.
A little help. To help investors and other stakeholders understand a little better what is happening we are sharing a one-off deeper insight into our 1Q 20/21 trading performance, the focus of which is our UK & ROI business.
Slide 2: Channel Mix
Channel Mix UK 8.7% LFL ROI 20.5% LFL Booker 0.6% LFL Figure 1. Large stores Figure 4. Large stores Figure 7. Retail 13.7% 30.0% 26.6% 26.8% 15.1% 17.5% 16.0% 1.4% 3.1% (1.1)% (0.6)% (0.3)% FY P1 P2 P3 FY P1 P2 P3 FY P1 P2 P3 Figure 2. Small stores1 Figure 5. Small stores Figure 8. Catering 13.5% 14
Slide 3: Basket size and transactions
Basket size and transactions Customers are shopping less frequently and the size of the basket has increased Figure 9. UK large stores Figure 11. ROI large stores 95% 95% 45% 45% (5)% (5)% (55)% (55)% 1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7 8 9 10 11 12 13 Week Week Transactions £ per Basket Tra
Slide 4: Category and Channel breakdown
Category and Channel breakdown Figure 13. Very strong food sales; GM and clothing Figure 14. Strong growth in large stores, convenience and improving through the quarter online Participation LFL sales growth Participation LFL sales growth 1Q LY 1Q TY 1Q LY 1Q TY 1Q LY 1Q TY 1Q LY 1Q TY Fresh 42.0% 4
Slide 5: Online
Online Figure 15. Doubled capacity; from 9% to over 16% of sales Figure 17. Significant increase in online sales1 33.5% market share 1.3 20% 1.4 0.5 Sales (£bn) 15% 15.7% market share 0.7 0.7 10% 0.2 0.8 0.4 5% 0.0 Ocado Tesco 0.0 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 1Q 19/20 sales Additional 1Q 20/21 s
Slide 6: Brand
Brand Core Brand Metrics COVID-19 Specific Brand Metrics Figure 20. Strong improvement in Brand Index1 Figure 23. Top supermarket for ‘doing the right thing’3 31 29% 17% 24 Feb June 13% 2020 Tesco Rest of Big 4 Competitor Average 2020 9% Figure 21. Improved ratings of both quality and value2 6% 5% 5
Slide 7: Switching from Aldi
Switching from Aldi Figure 25. Sharp increase in customers switching Figure 26. Tesco customers shopping less elsewhere2 from Aldi to Tesco1 £m (4.5)% Fewer customers also going to Aldi 20 Fewer customers also going (1.3)% 10 to the rest of the Big 4 0 (10) Figure 27. ‘Aldi Price Match’ improving cu
Slide 8: Booker
Booker Figure 28. Significant total sales Figure 29. Catering LFL sales down Figure 30. Growing market share in change across channels1 significantly2 all areas3 24% Cost Pubs Restaurants Fast Food Catering 14% Total 23% (3)% 8% Catering 19% (32)% 24% (32)% Retail (53)% 25% Retail Catering (63)% Pre
Slide 9: Costs
Costs Figure 31. Current best view1 of incremental costs Figure 32. COVID-19 related absence remains (illustrative and highly likely to change) high at c.32,000 1Q 2Q 3Q 4Q 55,000 £m Total Act. Fcst. Fcst. Fcst. Peak of 52,000 12 weeks pay for 26,000 vulnerable (38) (30) (27) (25) (120) 50,000 colle
Slide 10: Bank
Bank Figure 33. Banking and Money Services heavily impacted Figure 34. Capital ratios and liquidity remain strong 1Q 20/21 YoY improvement Key income drivers Tier 1 capital ratio 21.8% +5.5% Card Loan Cards ATM Travel Money balances balances retail spend transactions sales Total capital ratio 24.6%
Slide 11: Disclaimer
Disclaimer Certain statements made in this document are forward-looking statements. For example, statements regarding expected revenue growth and operating margins, market trends and our product pipeline are forward-looking statements. Phrases such as "aim", "plan", "intend", “should”, "anticipate",