J Sainsbury Plc · LSE:SBRY
J Sainsbury — Debt Investor Presentation (April 2025)
22 slides from J Sainsbury's debt investor presentation, April 2025
Slide 1: Preliminary Results 2024/25
Preliminary Results 2024/25 Presentation for Debt Investors and Fixed Income Analysts Bláthnaid Bergin James Collins Chief Financial Officer Director of Investor Relations
Slide 2: Next Level Sainsbury's
Debt Presentation Next Level Sainsbury’s We make good food joyful, accessible and affordable for everyone, every day First choice Loyalty More Argos, Save and for food everyone more often invest loves to win Attract many more people Build a world-leading Unleash and transform Save £1 billion and to
Slide 3: Building on strong foundations
Debt Presentation Building on strong foundations At our most Re-invigorated Growing long- Record Enhanced Nectar Investing in data, competitive: passion for food term supplier availability, capabilities technology and £1 billion price innovation partnerships extending leading building automation inv
Slide 4: We have fundamentally strengthened our business over the last four years
Debt Presentation We have fundamentally strengthened our business over the last four years Value perception1 Quality perception 2 Food availability 3 +370 bps +190 bps over four over four years years +200 bps over four years 20/21 21/22 22/23 23/24 24/25 20/21 21/22 22/23 23/24 24/25 20/21 21/22 22/
Slide 5: More and more customers are choosing Sainsbury's for their main food shop
Debt Presentation More and more customers are choosing Sainsbury’s for their main food shop Significant growth in Biggest market share gains primary customers 1 in over a decade 2 Growth in primary customers – 24/25 vs 20/21 Volume market share 3 20% 13.0 % 12.8 % 10% 12.6 % 0% 12.4 % Sainsbury’s Te
Slide 6: Our Commitments
Debt Presentation Our Commitments Food volume growth ahead of the market Deliver profit leverage from sales growth Customer satisfaction higher 26/27 vs 23/24 £1bn cost savings over three years to 26/27 Colleague engagement higher 26/27 vs 23/24 £1.6bn+ retail free cash flow over three years to 26/2
Slide 7: Retail sales growth by category
Debt Presentation Retail sales growth by category Sainsbury’s sales growth1 Argos sales growth2 Total Retail sales growth FY24/25 FY24/25 FY24/25 Argos 4.2% 3.1% Fuel 1.4% Excl. Fuel Inc. Fuel sales sales growth growth (2.7)% (8.9)% Total Sainsbury’s 1. Excl. Fuel, inc. VAT 2. Including Republic of
Slide 8: Retail underlying operating profit
Debt Presentation Retail underlying operating profit Retail underlying Sainsbury’s 2025/26 Guidance operating profit operating profit1 We expect to deliver Retail underlying operating profit + 7.2% of around £1 billion £1,036m £966m Argos operating profit1 FY FY FY FY FY FY 23/24 24/25 23/24 24/25 2
Slide 9: Financial Services
Debt Presentation Financial Services Total underlying operating profit1 Expenses 2 2025/26 Guidance We expect Financial Services underlying operating profit on a continuing basis of around £10 million Income and £29m Other 3 £30m FY FY 23/24 24/25 1. Inclusive of discontinued operations 2. Includes
Slide 10: Net debt and Retail free cash flow
Debt Presentation Net debt and Retail free cash flow FY FY £m 2024/25 2023/24 Net cash from operating activities 1,805 1,921 of which underlying working capital movements 98 262 2025/26 Guidance of which pension cash contributions (45) (44) We expect to generate more than £500 million of retail Capi
Slide 11: Capital expenditure
Debt Presentation Capital expenditure 2025/26 Guidance £800m We expect core retail cash capital expenditure (excluding Financial Efficiency Services) in 2025/26 of £800m to £850m. £600m Maintenance £400m Growth £200m Homebase & Co-op stores £0m 23/24 24/25 25/26e J Sainsbury plc April 2025 Prelimina
Slide 12: Balance sheet metrics
Debt Presentation Balance sheet metrics Net debt / EBITDA1 Return on capital employed 2 3.4 9.0% 3.3 8.4% 3.2 3.1 7.4% 3.0 8.3% 7.4% 7.6% 2.6 2.6 5.6% 18/19 19/20 20/21 21/22 22/23 23/24 24/25 18/19 19/20 20/21 21/22 22/23 23/24 24/25 Guidance FY 25-27 commitment: We continue to target leverage of n
Slide 13: Debt and liquidity
5 Debt Presentation Debt and liquidity Prudent debt maturity profile Borrowing Facility Maturities £700m • Modest direct borrowings Revolving Credit Facility £600m • £5bn Euro Medium Term Note programme established in January 2025, with 2 £500m outstanding bonds £400m • £1bn committed Revolving Cred
Slide 14: Credit Ratings
5 Debt Presentation Credit Ratings Rating Agency Long Term Rating Outlook Moody’s Baa3 Stable Standard & Poor’s BBB Stable J Sainsbury plc April 2025 Preliminary Results 2024/25 14
Slide 15: Summary
Debt Presentation Summary What we’ve delivered Looking in FY 24/25 ahead • Sustaining our strong competitive • Grocery volume growth and operating leverage position • Continued investment into growth and efficiency • Continued market outperformance • Enhanced cash returns to shareholders • Strong ca
Slide 16: Sustaining our competitive value position
Debt Presentation Sustaining our competitive value position Significant improvement in value index versus all competitors since start of Food First1 Expansion of Nectar Prices Growing Aldi Price Match April 2025: April 2025: Aldi Lidl Morrisons 10,000 >9,000 800 >700 SKUs SKUs 700 8,000 1,650bps 1,2
Slide 17: Our biggest investment in space in over a decade
Debt Presentation Our biggest investment in space in over a decade New store openings ‘More for more’ Propositional in target locations space rebalances changes +c.3% Food space in 25/26 Customer experience ROCE Quality Value Cost to serve +15 Supermarkets Trading Intensity +25 Convenience Stores J
Slide 18: Accelerating into the year ahead
Debt Presentation Accelerating into the year ahead Committed to Delivering Celebrating 25 Scaling our Investing in Structural cost sustaining our biggest space years of Taste personalisation technology and reduction and strong growth in over a the Difference capabilities and automation productivity
Slide 19: Appendices
Appendices
Slide 20: Guidance for 2025/26
Appendix Appendix Guidance for 2025/26 Profit Tax rate • We expect to deliver Retail underlying operating profit of around £1 billion • We expect an underlying tax rate of around 30 per cent • We expect to deliver Financial Services underlying operating profit of around £10 million on a continuing b
Slide 21: Capital allocation framework: long-term value creation
Appendix Capital allocation framework: long-term value creation Invest in the business to support FY25-FY27: £800-£850m capex per annum, 1 our strategy retail free cash flow £1.6bn+ A solid investment grade 2 balance sheet Target leverage of 3.0x-2.4x net debt/EBITDA Deliver strong dividends for 3 s
Slide 22: Cash flow and net debt
Appendix Cash flow and net debt FY 24/25 Cash Flow £m Non- Adjustments for underlying D&A, share based operating payments & other 98 cash flows1 1,223 2,259 Working (116) Capital capital (409) expenditure movements Net interest paid, corporation tax Lease (825) 45 repayments2 1,036 Proceeds Non-cash
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