Slide 1: Preliminary Results 2025/26
Preliminary Results 2025/26 Ken Murphy, Group Chief Executive Imran Nawaz, Chief Financial Officer 16 April 2026
Slide 2: Putting customers first, well-placed for long-term growth
Putting customers first, well-placed for long-term growth Increased customer satisfaction, with highest market share for a decade Profit and free cash flow ahead of guidance Using our reach, data and AI to unlock long-term growth opportunities 2
Slide 3: Winning with customers
Winning with customers Further gains in customer satisfaction and market share Improving customer NPS1 UK market share gains2 Further ROI share gains3 28.5% 24.2% 28.3% 23.9% 23.6% 27.7% 27.3% 22.9% Dec 2020 Mar 2026 2023 2024 2025 2026 2023 2024 2025 2026 1. BASIS Global Brand Tracker 13 weeks roll
Slide 4: Continued investment in value
Really striking image Continued investment in value Maintained strong price position versus the competition Tripled the number of products on Everyday Low Prices to 3,000 Over 10,000 prices lower versus the start of the year 4
Slide 5: Investing in quality across our ranges
Investing in quality across our ranges Innovation Frozen +15% sales growth >2,000 new and improved products Large range refresh across tiers 5
Slide 6: Rewarding our colleagues
Rewarding our colleagues £209m Investment in colleague pay1 +43% Increase in hourly pay for store- based colleagues over last 5 years >22k Colleagues benefitting from share scheme maturity in FY 25/26 £65m Additional performance award for hourly paid colleagues 6 1. Total investment in hourly pay fo
Slide 7: Delivering for our broader stakeholders
Delivering for our broader stakeholders Communities Suppliers Planet Shareholders Fruit & Veg for Schools Ranked no.1 in the Advantage 68% reduction in operational Returned £2.4bn to shareholders supporting over 500 schools survey for 10th year running emissions1, ahead of 2025 target in-year via di
Slide 8: Financial Performance
Financial Performance Imran Nawaz, Chief Financial Officer 8
Slide 9: Performance headlines
Performance headlines On a continuing operations basis Like-for-like sales growth across all segments Group sales1 Group adj. op. profit1 +4.3% £3,152m Like-for-like +3.5% +0.6% vs. last year Profit growth, with sales growth and Save to Invest offsetting investments in the customer offer and cost in
Slide 10: Segmental performance
Segmental performance Group sales1: £66.6bn On a continuing operations basis Central Europe £4.5bn Change at constant LFL3 Booker rates £9.0bn UK & ROI 5.0% 4.2% • Sales growth in all segments Booker 0.6% 0.2% • Group adjusted operating profit UK & ROI Central Europe 3.7% 2.2% £53.1bn ahead of guida
Slide 11: UK
UK Sales growth driven by Food LFL growth across all channels Further gains in Online Market share1 +30bps to 35.7% 4.2% 5.2% Large +3.9% LFL sales growth Food LFL sales Orders per week2 +6.0% Convenience +0.3% Basket size2 +2.7% 14.5% 5.1% Tesco Finest Growth in Whoosh sales +51%; 73% national Onli
Slide 12: ROI
ROI Strong LFL sales growth1 LFL growth across all channels Expanded reach and offer 9 new stores 4.6% 6.6% Large +3.1% 4 Large Total sales LFL sales growth growth 5 Express Convenience +4.3% 5.1% 11.8% 94% 47% Tesco Finest Online national of Express stores Food LFL sales Online +17.4% have Whoosh g
Slide 13: Booker
Booker LFL growth, despite ongoing decline in tobacco sales Core retail – supported by symbol brands growth1, +369 net Sales (£m) LFL new retailer partners. Includes c.100bps impact from ending of a lower-margin national account Core retail 3,307 2.2% Core catering – increased customer satisfaction;
Slide 14: Central Europe
Central Europe Fresh food driving growth1 Scaling our online business Customer satisfaction gains 22 NPS2 2.2% 2.6% Large +1.4% LFL sales growth Food LFL sales 18 Convenience +3.1% Q1 Q2 Q3 Q4 4.1% 33.5% Celebrated 15 years of Clubcard with a wide range of customer rewards Tesco Finest Growth in Fre
Slide 15: Group adjusted operating profit
Group adjusted operating profit Group adjusted operating profit bridge2 Group adjusted operating profit up +0.8%1 £4m £3,152m £19m £2m £(1)m £3,128m Continued investment into value, quality and service c.£535m contribution from Save to Invest, helping FY 24/25 UK & ROI Booker Central Currency FY 25/
Slide 16: Statutory profit after tax
Statutory profit after tax On a continuing operations basis 25/26 24/25 £m 53 weeks 52 weeks Adjusted operating profit (52 weeks) 3,152 3,128 Week 53 adjusted operating profit 42 - Adjusting items of £(153)m reflects: Adjusted operating profit 3,194 3,128 Adjusted net finance costs (541) (536) • Amo
Slide 17: Free cash flow
Free cash flow £m 25/26 24/25 Cash generated pre-working capital 4,784 4,692 Delivered £1.96bn of free cash flow, up +£207m Decrease/(increase) in working capital 385 (45) versus last year Operating cash flow 5,169 4,647 Cash capex1 (1,515) (1,392) Working capital inflow reflects growth in sales and
Slide 18: Investing in growth and delivering strong returns
Investing in growth and delivering strong returns Disciplined increase in capex Strong returns versus WACC2,3 Continued shareholder returns Capital expenditure (£m)1 ROCE Returns to shareholders (£m)4 14.6% 14.4% Return of Bank proceeds 1,457 1,511 13.4% Share buyback 2,387 1,314 12.1% 11.8% Dividen
Slide 19: A disciplined approach to capex
A disciplined approach to capex Capex breakdown (FY 25/26) Health, safe and legal £0.2bn Spend that underpins our safe, compliant operations Productivity and growth £0.6bn Prioritising high return areas, £1.5bn including automation, AI and digital Capex £0.7bn Maintaining & refreshing our estate Inv
Slide 20: Strong balance sheet
Strong balance sheet 1 Net debt Fixed charge cover Net debt1 increase driven by return of £0.7bn Bank sale proceeds to shareholders 2.1x 2.0x 4.1x 4.2x £10.6bn Net debt ratio at 2.1x vs 2.0x last year £9.5bn £1,206m £1,136m £148m £159m £7.9bn Fixed charge cover remains strong at 4.1x £7.7bn £1,058m
Slide 21: Driving sales, operating profit, EPS and free cash flow
Driving sales, Group Sales (£m) Group adj. op. profit (£m) operating profit, EPS 66,588 and free cash flow 3,128 3,152 63,636 2,829 2,509 61,477 57,216 5.2% CAGR 7.9% CAGR Strong delivery against our multi- year performance framework1 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 22/23 FY 23/24 FY 24/25 FY
Slide 22: Clear priorities for capital allocation
Clear priorities for capital allocation Our capital allocation framework 1 Reinvest in business and customer offer FY 26/27: c.£1.6bn of Capex 2 Maintain a solid investment grade balance sheet Net debt/EBITDA c.2.8—2.3x 3 Pay a progressive dividend Target a pay-out ratio of c.50% of earnings 4 Consi
Slide 23: Multi-year performance framework
Multi-year performance framework. Raising our medium-term cash guidance range • Increasing customer satisfaction relative to Drive top-line the market growth • Growing or at least maintaining our core UK market share In doing so, generate £1.5bn to £2.0bn • Leveraging our assets efficiently across a
Slide 24: Summary
Summary Strong delivery with LFL growth across all segments, Group profit and cash flow ahead of guidance £2.4bn returned to shareholders via dividends and share buybacks, including return of proceeds from sale of Banking operations FY 26/27 Guidance • Group adjusted operating profit of £3.0bn to £3
Slide 25: Strategic Update
Strategic Update Ken Murphy, Group Chief Executive 25
Slide 26: Significant progress over the past five years
Significant progress over the past five years Strengthened our core Built strong digital Delivered for all business foundations stakeholders UK Market Share1 28.5% 28.3% 27.6% 27.7% 27.3% 27.3% 2021 2022 2023 2024 2025 2026 +120bps market share gain since Enhanced capabilities in digital, retail Inc
Slide 27: We have five key ambitions
We have five key ambitions Meeting more Being the most Connected, Long-term business Winning in food everyday customer strategic partner for personalised and sustainability needs suppliers loved by customers We want to help We want to use our We want to further We want shopping with We want to deliv
Slide 28: Winning in food
Winning in food We want to deliver the best value, quality, and innovation in food 28
Slide 29: Best combination of price and quality at every tier
Winning in food We want to deliver the best combination of price and quality at every tier Competitor average Tesco 102 Across 3,000 lines Over 10,000 products 100 per week Over 600 products 98 19/20 20/21 21/22 22/23 23/24 24/25 25/26 Unrivalled value across branded Maintaining our strong price Fin
Slide 30: Best combination of price and quality at every tier
Winning in food We want to deliver the best combination of price and quality at every tier £4bn £3bn £2bn Store A Store B £1bn - 21/22 22/23 23/24 24/25 25/26 Investing in quality Grow Finest beyond Relevant, localised Known for newness across every tier a £3bn brand product ranges using AI and inno
Slide 31: Serving customers wherever, whenever and however they shop
Winning in food Serving customers wherever, whenever and however they choose to shop 28.5% UK grocery >99% household coverage Further rollout of Whoosh, Booker serving catering and market share1 in grocery home shopping including into large stores retail missions nationwide 31 1. Worldpanel by Numer
Slide 32: Meeting more everyday customer needs
Meeting more everyday customer needs We want to help customers with more of their daily needs through trusted products and services 32
Slide 33: Wide range of everyday products and services
Meeting more everyday customer needs Wide range of everyday products and services F&F fast approaching £1.5bn of Award-winning mobile network with Insurance products & money services, fashion and lifestyle sales over five million customers including personalised Clubcard Prices 33
Slide 34: Expanding our F&F offering
Meeting more everyday customer needs Expanding our F&F offering Ambition to grow into a leading fashion and lifestyle brand Launched F&F Online this year, giving customers access to a much fuller range of clothing New F&F platform across web and app coming later this year to elevate customer experie
Slide 35: Marketplace opportunity
Meeting more everyday customer needs Marketplace opportunity Tesco Marketplace offers an expanded range of c.450k third-party SKUs from >500 sellers Over one million customers have now tried Marketplace for the first time Re-platformed with Mirakl for AI-powered seller onboarding and enhanced custom
Slide 36: The first choice for health and wellbeing
Meeting more everyday customer needs The first choice for health and wellbeing 355 in-store pharmacies offering a Weight loss management service Vaccines, free blood pressure checks broad range of services launched nationwide in January and NHS-led advice available in-store 36
Slide 37: Being the most strategic partner for suppliers
Being the most strategic partner for suppliers We want to use our unique insights to build new revenue opportunities and partnerships 37
Slide 38: Clubcard gives us a unique ability to understand customers
Being the most strategic partner for suppliers Clubcard gives us a unique ability to better understand and serve customers Clubcard Sales Penetration 89% 88% 85% UK ROI Central Europe Three decades of knowledge More than 85% of sales across Insight from food, mobile, and understanding from the the T
Slide 39: Retail media across our store and digital canvas
Being the most strategic partner for suppliers Retail media across our store and digital canvas +24% Total number of campaigns increased to over 12,500 91% of advertisers increased their spend year-on-year GenAI Powered ‘Creative Studio’ to simplify and speed up ad production New Onsite premium vide
Slide 40: A strategic partner for innovation and brand-building
Use data and partnerships “Tesco’s Accelerator programme has been integral to to fuel growth A strategic partner for innovation PerfectTed’s success. It gave us the commercial rigour, mentorship, and access to the right people at and brand-building exactly the moment we needed it most” Marisa Poster
Slide 41: dunnhumby – our intelligence layer
Being the most strategic partner for suppliers dunnhumby – our intelligence layer Recent solutions supported by dunnhumby: Application of data science and AI across the ecosystem to: Using machine learning and data science • better serve customers to power smarter range reviews • unlock growth for s
Slide 42: Connected, personalised and loved by customers
Connected, personalised and loved by customers We want shopping with us to be even easier, more personal and rewarding 42
Slide 43: Every Little Helps begins with our colleagues
Connected, personalised and loved by customers Every Little Helps begins with our colleagues >80% of colleagues recommend >1 million training hours for UK We want our >335,000 colleagues Tesco as a Great Place to Work1 store colleagues to be our biggest advocates 43 1. 2026 Every Voice Matters (EVM)
Slide 44: Meeting local needs better than anyone
Connected, personalised and loved by customers Meeting local needs better than anyone Largest store network in the Extensive convenience We want Tesco to be the preferred UK & ROI, over 4,200 stores presence store in every community Serving customers across food, clothing, Over 3,000 Express and One
Slide 45: The UK's most rewarding loyalty scheme
Connected, personalised and loved by customers The UK’s most rewarding loyalty scheme 24m households earn Up to 3x points value on Rolling out thoughtful Clubcard points on everything dining, travel and days out freebies designed to surprise from food to fuel with >100 reward partners and delight cu
Slide 46: We want shopping to be even more seamless and relevant
Connected, personalised and loved by customers We want shopping to be even more seamless and relevant Strategic partnerships with Millions of highly personalised Personalised Your Clubcard WPP Open and Adobe coupons and offers in-app, Prices launched to unlocking new capabilities online and in-store
Slide 47: Personalised to you
Connected, personalised and loved by customers Personalised to you 47
Slide 48: New AI assistant to lighten the load for customers
Connected, personalised and loved by customers New AI assistant to lighten the load for customers 48
Slide 49: Long-term business sustainability
Long-term business sustainability We want to further strengthen our resilience, efficiency and sustainability, ready for future growth 49
Slide 50: Optimising our operations
Long-term business Optimising our operations sustainability Save to Invest has unlocked £2.2bn Well established Save to Invest programme helps us simplify and boost productivity of cumulative savings over 4 years £2.5bn Opened new semi-automated fresh food £2.0bn distribution centre in Aylesford £1.
Slide 51: Building resilient supply chains
Long-term business sustainability Building resilient supply chains Committed to long-term supplier partnerships Competitive advantage across supply risk mapping, centralised sourcing & commodity risk management Driving innovation as British agriculture’s biggest customer through six sustainable farm
Slide 52: Further enhancing our business with technology and AI
Long-term business sustainability Further enhancing our business with technology and AI Enables the most connected, relevant Customers Colleagues customer experience Gives us a more interconnected, agile and resilient supply-chain Supplier Operational Drives sustainable partners efficiency operation
Slide 53: Progressing our Planet Plan
Long-term business sustainability Progressing our Planet Plan Refreshing our Planet Plan commitments, focusing on the areas where we can have the greatest impact and accelerate change 2050 Commitment to net-zero across our value chain 68% Reduction in operational emissions1, ahead of 60% December 20
Slide 54: We have five key ambitions
We have five key ambitions Meeting more Being the most Connected, Long-term business Winning in food everyday customer strategic partner for personalised and sustainability needs suppliers loved by customers We want to help We want to use our We want to further We want shopping with We want to deliv
Slide 55: Creating a leading food-first retail ecosystem
Creating a leading food-first retail ecosystem Meeting more everyday customer needs Grow household spend, generating higher revenue and enhanced data Winning in food Connected, personalised and loved by customers Deliver the best quality, value and innovation in food Delivered through our unique dig
Slide 56: Q&A
Q&A Ken Murphy, Group Chief Executive Imran Nawaz, Chief Financial Officer 56
Slide 57: Thank you
Thank you. For more information, please contact: investor.relations@tesco.com 57
Slide 58: Appendix
TESCO MT a a a Appendix
Slide 59: Adjusting items FY 25/26
Adjusting items FY 25/26 FY 25/26 FY 24/25 (53 weeks) (52 weeks) £m £m Net impairment charge on non-current assets (53) (286) Amortisation of acquired intangible assets (78) (76) Separation costs related to disposal of Banking operations (28) (14) Restructuring and adjusting property transactions (5
Slide 60: Debt and liquidity
Debt and liquidity Debt maturity profile (£bn) Smooth debt maturity profile 1.00 Debt Maturities Sustainability-Linked Bond 2025 Issuances Less than £1bn maturing in any one year 0.90 Weighted average maturity of c.6 years 0.80 0.70 Weighted average interest cost of c.4.5% (excluding 0.60 leases) 0.
Slide 61: Guidance
Guidance Group profit Adjusted operating profit of between £3.0bn and £3.3bn Free cash flow Within our upgraded medium-term guidance range of £1.5bn to £2.0bn Capex Invest c.£1.6bn with continued focus on high-returning projects Net finance costs1 To normalise to levels similar to FY 23/24 (£(558)m)
Slide 62: Disclaimer
Disclaimer Certain statements made in this document are forward-looking statements. For example, statements regarding future financial performance, market trends and our product pipeline are forward-looking statements. Phrases such as "aim", "plan", "intend", “should”, "anticipate", "well-placed", "