Tesco Plc · LSE:TSCO
Tesco — Debt Investor Presentation (April 2015)
19 slides from Tesco's debt investor presentation, Apr 24, 2015
Slide 1: Preliminary Results – Fixed Income Investor Call
24 April 2015 PRELIMINARY RESULTS – Fixed Income Investor Call Alan Stewart – CFO, Shubhi Rao - Group Treasurer
Slide 2: Agenda
Agenda • Update on three key priorities • Full year results • Q&A
Slide 3: Three priorities
Three priorities 1 Regaining competitiveness in our UK business 2 Protecting and strengthening the balance sheet 3 Rebuilding trust and transparency
Slide 4: Investing in our customer offer
Investing in our customer offer 75% 80% 65% 40% 55% 35% 32 34 36 38 40 42 44 46 48 50 52 32 34 36 38 40 42 44 46 48 50 52 32 34 36 38 40 42 44 46 48 50 52 Service Availability Price Source: Customer Viewpoint Survey Note: Service chart reflects % customers rating overall service and colleague helpfu
Slide 5: Simple, agile, lower cost
Simple, agile, lower cost £250mp.a. £400mp.a. (one-off cost (one-off cost £300m) £350m) 8 January Today
Slide 6: Strengthening the balance sheet
Strengthening the balance sheet No final Property Capability & infrastructure Maintenance dividend & Refresh Reduction to Property 2014/15 and Pension consultation £1bn capex Pipeline review started
Slide 7: Strengthening the balance sheet
Strengthening the balance sheet 20 Mar 9 stores / 21 superstores shopping centres RPI-indexed rent Market rents 49 sites exited Full ownership of 21 superstores regained
Slide 8: Property
Property • £22.9bn owned property valuation • £0.9bn JV property valuation net of debt UK Asia Europe Group Property* – wholly owned - Estimated market value £10.5bn £8.3bn £4.1bn £22.9bn - NBV** £10.5bn £6.1bn £3.7bn £20.2bn % net selling space owned 41% 66% 75% 59% % total property owned – by valu
Slide 9: Liquidity and funding
Liquidity and funding £22bn £2.2bn £2.6bn Nov 2019 Nov 2017 + 1 year + 1 year Bilateral Committed Leverage facilities facilities
Slide 10: Reshaping the portfolio
Reshaping the portfolio Portfolio review On track Continue to review ongoing full-value options
Slide 11: Full year results
Full year results
Slide 12: Group performance
Group performance Continuing operations 14/15 Change % Change % 53 wks 53 wks 52 wks Group sales £69,654m (1.7)% (3.0)% Group trading profit £1,390m (58.1)% (58.2)% One-off items £(7,022)m (776.7)% - Operating loss £(5,792)m n/a n/a Group losses before tax £(6,376)m n/a n/a Underlying profit before
Slide 13: Segmental performance
Segmental performance Sales Change* Trading profit Change* 14/15 52 wks 14/15 52 wks UK £48.2bn (1.7)% £467m (78.8)% Asia £10.5bn (0.9)% £565m (15.3)% Europe £9.9bn (0.6)% £164m (31.1)% Bank £1.0bn 2.1% £194m 0.0% Group £69.7bn (1.3)% £1,390m (57.5)% * At constant exchange rates.
Slide 14: One-off items
One-off items Property impairment and onerous lease charges £(4,727)m Goodwill and other impairments £(878)m Stock £(570)m Restructuring £(416)m Commercial income adjustment (prior years) £(208)m Other £(223)m Total one-off items £(7,022)m
Slide 15: Retail cash flow
Retail cash flow £m 3,000 2,520 2,000 (660) Other 1,000 working capital 0 Cash flow from (2,000) operations before (243) Capex net of one-off’s* Acquisitions / (275) (1,000) disposals disposals Investments/ loans in JVs and associates (852) 525 (2,000) Interest (1,884) and Movement in taxation (899)
Slide 16: Summary
Summary • Facing into reality • Transformation programme progressing well • Customer offer improving • Volume-driven recovery beginning • Active balance sheet management • Rebuilding trust and transparency in our business • Unprecedented pace of change • Reinvestment, reinvestment, reinvestment
Slide 17: Putting our customer first
PUTTING OUR CUSTOMER FIRST
Slide 18: Q&A
Q&A
Slide 19: Disclaimer
Disclaimer This document may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected revenue growth and trading margins, market trends and our product pipeline are forward-looking statements. Phrases such as "aim", "plan", "intend", "anticipa