J Sainsbury plc · LSE:SBRY

J Sainsbury — Investor Presentation (January 2012)

19 slides from J Sainsbury's investor presentation, Jan 25, 2012

  1. Slide 1: Osmaston Park

    Osmaston Park 25 January 2012

  2. Slide 2: Overview

    Overview  Update from John Rogers  Meet Sainsbury’s management  Tour logistics

  3. Slide 3: 2011/12 Interim Results Highlights

    2011/12 Interim Results Highlights H1 H1 2011/12 2010/11 Change Underlying results £m £m % Sales (inc VAT) 12,848 11,944 7.6 Sales (inc VAT, ex fuel) 4.3 Operating profit 396 370 7.0 Net finance costs (57) (51) (11.8) Share of JV profits 15 13 15.4 Profit before tax 354 332 6.6 Tax rate 26.6 % 26.5

  4. Slide 4: Sales growth

    Sales growth  Good sales performance in a challenging market - 28 quarters of like-for-like sales growth - consistent contribution from new space Sainsbury’s strong in a tough market Sales growth1 % 8 Sainsbury’s Asda Tesco Morrisons 6 4 2 0 (1) Kantar Total Till roll 12 w/e Q1 Q2 Q3 Q4 Q1 Q2 Q3 20

  5. Slide 5: Market Backdrop: Customers spending to a budget

    Market Backdrop Customers spending to a budget  Customers have adopted new behaviours to cope with economic pressures  Economic environment to remain challenging 3 Grocery market volume growth1 % 2 1 0 10/11 -1 Avg Petrol price 119p 116p 119p 130p 136p 135p 135p Q1 Q2 Q3 Q4 Q1 Q2 Q3 10/11 11/12 (1

  6. Slide 6: Market Backdrop: Savvy shopping

    Market Backdrop Savvy shopping  Customer transactions up almost 1 million to nearly 22 million(1)  Customers spending more locally and managing spend in the basket Sainsbury’s customer behaviour (first half) (Growth year-on-year) 20 Supermarkets % Convenience Total 0 -10 Transactions Items (1) Ave

  7. Slide 7: Quality products at great prices

    Live Well For Less Quality products at great prices ″I can help my family lead a healthy lifestyle with tasty and nutritious meals that don’t cost the earth″ ″They care about helping their customers do a little more with their shopping budget″ ″Sainsbury’s are allowing you to live the high life on a

  8. Slide 8: Value for values

    Live Well For Less Value for values

  9. Slide 9: Customers rate us number one for quality food

    Live Well For Less Customers rate us number one for quality food Quality of products (scale of 1–10) Mean JS Asda score Tesco Morrisons 8.4 8.25 8.2 8.2 8.0 7.9 7.75 7.5 08/09 09/10 10/11 11/12 to date Source: Ipsos-MORI unweighted rolling 8 wk data, questionnaire completed online since Jan 2009 Bas

  10. Slide 10: Own label strong and growing

    Live Well For Less Own label strong and growing Own label driving sales 12 % 10  basics, by Sainsbury’s and Taste the Difference all growing 8 strongly 6  Customers continue to shop across the range 4  by Sainsbury’s relaunch – converted ranges growing more 2 than 10% by Sainsbury’s 0 -2 Q4 Q1 Q2

  11. Slide 11: Price perception continues to lag reality

    Live Well For Less Price perception continues to lag reality  Investments in price over past 6 years have closed gap to peers  Closing the remaining gap between perception and reality a key opportunity Where customers would shop if they believed all prices were the same(1) 50 Use 2011 % Would use

  12. Slide 12: Brand Match

    Live Well For Less Brand Match  Addressing the gap between price perception and reality  Unique in market – immediate coupon at till  Around 50% of baskets are cheaper at Sainsbury’s  Majority of discount vouchers issued are for less than £1

  13. Slide 13: Nectar is a competitive advantage

    Live Well For Less Nectar is a competitive advantage  Insight from loyalty schemes supports focused investment  Coupon-at-till highest ROI form of marketing Effective allocation of advertising spend (1) Growth in spend on TV and print advertising since 2008 150 + 34% + 38% + 17% 125 Sainsbury’s -

  14. Slide 14: Growing Space and Creating Property Value

    Growing Space and Creating Property Value A differentiated space growth strategy (1) 2011/12 Planned openings of the Big 4 Sainsbury’s Tesco Asda Morrisons New supermarkets Convenience Rebadge Extensions (1) Sainsbury’s company data

  15. Slide 15: Space growth not at expense of existing estate

    Growing Space and Creating Property Value Space growth not at expense of existing estate Distance of planned new stores from existing supermarkets (% of total square feet 1) 40 Sainsbury’s Rest of the Market2 % 30 20 10 0 Less than 1 1-2 miles 2-4 miles 4-8 miles Greater than 8 mile miles (1) Sainsb

  16. Slide 16: Growing Space: Investments delivering accretive ROCE

    Growing Space Investments delivering accretive ROCE Pre-tax ROCE New Store Urmston (Manchester) June 2009 25  Town Centre Urmston New Store %  32k sq ft Bramingham Park Extension Northampton Convenience Extension ROCE Bramingham Park December 2010  11k sq ft extension  Total store now 54k sq ft

  17. Slide 17: Osmaston park

    Osmaston park Scheme details  Store extended by 35,000 sq ft in August 2011 Post extension Change - including 30,000 sq ft non-food sq ft sq ft Food 38,000 16,000  Performing ahead of budget Non-food 30,000 19,000 - non-food trading particularly well Total 68,000 35,000  Property value enhanced b

  18. Slide 18: Sainsbury's Management

    Sainsbury’s Management  Property - Philip Bell-Brown, Directory of Property Development - Matt Birch, Director of Assets & Estates  Convenience - Helen Buck, Convenience Director  Complementary Non-Food - Robbie Feather, Business Unit Director, General Merchandise  Great Food - Simon Twigger, Bu

  19. Slide 19: Store tour logistics

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