J Sainsbury Plc · LSE:SBRY
J Sainsbury — J Sainsbury Plc Ord — FY2025/26 Earnings Presentation
74 slides from J Sainsbury's earnings presentation, Apr 23, 2026
Slide 1: Sainsbury's
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Slide 2: Strong momentum and consistent delivery
Introduction Sainsbury's Strong momentum and consistent delivery TANDOORI MASALA CHICKEN : B20) Strengthened More food range Market leading our in more locations Taste the competitive + improved Difference position availability growth Delivered over £330m of cost savings and improved productivity JS
Slide 3: Our winning combination sets us apart
Introduction Sainsbury's Our winning combination sets us apart Consistently leading on customer service’ Strong improvement across key metrics’ Sainsbury’s —_ "“- +2ppts | +3ppts | +4ppts Tesco Overall Product Value for —_ yy satisfaction quality money Morrisons haan +3 ppts +3 ppts +3 ppts Product
Slide 4: More customers, more range, more locations
Introduction More customers, more range, more locations c.1.2 million more primary customers in 5 years’ 20/21 21/22 22/23 23/24 24/25 25/26 Invested in 70 stores 170,000 saft More food space across the estate c.1,000 Additional food products added 2% Food volume growth outperformance 5% Trading int
Slide 5: Highest volume market share in years
Introduction Sainsbury's Highest volume market share in 10 years 13.2% 12.8% 12.4% 12.0% 11.6% 11.2% 16/17, 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 1. Worldpanel by Numerator Panel (Kantar), Universe: City read Grocery, Volume market share, 2016/17 to 2025/26, 52 weeks to 1 March 2026
Slide 6: Consistently strong volume growth
Introduction Consistently strong volume growth 2% 1% 0% -1% 1. Intemnal Sainsbury's volume growth by quarter 2. Worldpanel by Numerator Panel (Kantar), Total Fresh & Grocery inc. Kiosk & Tobacco, Total market excluding Sainsbury's, volume growth by quarter JSainsbury ple April 2026 i Sainsbury’s' @
Slide 7: Growing basket size in a declining market
Introduction Growing basket size in a declining market Sainsbury’s Waitrose _i Ys = Lidl Morrisons Market 1. Worldpanel by Numerator Panel (Kantar), Total FMCG exc. Kiosk, Growth in average items per basket YoY, 24 weeks to 1 March 2026 JSainsbury ple April 2026 M&! Tesco Asda Aldi Sainsbury's Preli
Slide 8: Winning in food from the centre of the plate
Introduction Sainsbury's Winning in food from the centre of the plate Outperforming the market in key fresh categories' I Sainsbury’s @ Total market (excluding Sainsbury's) 0 Fresh Gaal + 8 0 sales growth 0 TTD Fresh ; T L l + 16 Ho sales growth Total Dairy Produce Meal Meat, Fish || Fresh Food Froz
Slide 9: Our strength in fresh food sets us apart
Introduction Our strength in fresh food sets us apart Health is increasingly important to customers... of customers > 75% — wouldlike their diet to be healthier? of UK consumers 40% have increased their protein intake* Households 1 in 4. are searching for high in fibre foods? 1. Sainsbury's Barriers
Slide 10: Driven by clear purpose, making us stronger
Introduction Sainsbury's Driven by clear purpose, making us stronger 157 years at the heart of tee . . Britain’s relationship with good food Amplifying our points of difference F —4 ay More food to more customers in more locations “(@y. Strengthening our ./~ innovation muscle “ag Renewed commitment
Slide 11: AI is unlocking strategic opportunities
Introduction Al is unlocking strategic opportunities Advanced Huper-personalised forecasting customer Connected stores supply-chain experience Intelligent and Predictive shrink Value and autonomous prevention planograms retail media Sainsbury's Agentic commerce Step-change productivity and innovatio
Slide 12: AI deeply embedded across our business
Introduction AI deeply embedded across our business Predictive shrink prevention >£4m saved annually through rescanning algorithms in SmartShop which target high risk baskets 26 features used to identify high * 250,000 risk baskets teal time decisions daily Optimising inventory accuracy JSainsbury p
Slide 13: Our commitments
Introduction Sainsbury's Our commitments Food volume growth ahead of the market aa Deliver profit leverage from sales growth — @ap Customer satisfaction higher 26/27 vs s 23124 GID FE ibn cost savings over three years to 26127 fo 00) Colleague engagement higher 26/27 \ vs 23/24 $000) £1 6bn+ retail
Slide 14: Balanced choices delivering for all stakeholders
Introduction Balanced choices delivering for all stakeholders c.£1.3bn invested in value over 5 years c.£800m investment in colleague pay since 2021, c.40% increase JSainsbury ple April 2026 Sainsbury's >£5bn committed spend through long-term partnerships with British and Irish farmers >£800m return
Slide 15: Financial highlights
Slide 16: Our financial framework
Financials Our financial framework Food volume growth + SG&A/sales reduction + Measured reinvestment in the customer proposition Profit leverage from sales growth JSainsbury ple April 2026 Fal Robust profitability + Disciplined capital investment Strong sustained cash flows and higher return on capi
Slide 17: Retail sales growth by category
Financials Sainsbury's Retail sales growth by category Sainsbury’s' Argos' Total Retail sales growth FY25/26 FY25/26 FY25/26 Excl. Fuel Inc. Fuel Grocery General Sainsbury's Argos sales growth sales growth Merchandise (8.2)% & Clothing 1. Excl. VAT, excl. Fuel JSainsbury ple April 2026 Preliminary R
Slide 18: Retail underlying operating profit
Financials Sainsbury's Retail underlying operating profit Retail underlying Sainsbury’s Argos operating profit operating profit’ operating profit’ (11)% 2026/27 Guidance We expect to deliver Total underlying operating profit of between £975 million and £1,075 million FY FY FY FY FY FY 24/25 25/26 24
Slide 19: Argos operating profit
Financials Sainsbury's Argos operating profit Argos operating profit’ FY24/25 FY25/26 H1 | at, a , | H2 FY H2 FY 1. Operating profit post-allocation of group costs, pre-allocation of storein-store concession rent costs to Argos JSainsbury ple April 2026 Preliminary Results 2025/26 19
Slide 20: Financial Services withdrawal and future strategy
Financials Financial Services Financial Services withdrawal and future strategy v4 Completed the sale of Sainsbury's Bank personal loan, credit card and retail deposit portfolios to NatWest Group in May. All migrations completed NewDay Group acquired beneficial title to Argos Financial Services to c
Slide 21: Underlying profit before tax
Financials Underlying profit before tax UPBT YoY movement’ UPBT up 1.3% Yoy | £(1m = £22m Fem « . . ‘mance Retail Financial costs Services FY FY 24/25 25/26 Sainsbury's Earnings per Share’”* up 3.2% YoY 2026/27 Guidance We expect an underlying tax tate of around 29 per cent. We expect underlying net
Slide 22: Items excluded from underlying pre-tax results
Financials Sainsbury's Items excluded from underlying pre-tax results FY FY £m 2025/26 2024/25 Financial Services phased withdrawal (8) (16) 2026/27 Guidance Retail restructuring programmes (74) (128) We expect to incur non-underlying IAS 19 pension income 33 28 cash costs relating to Retail restruc
Slide 23: Cash flow metrics
Financials Sainsbury's Cash flow metrics Working Capital Retail Free Cash Flow movement Capital expenditure Net debt! FY FY £825m [ay 2623m 24/25 25/26 £(264)m £(203)m exc. exc. lease lease liabilities liabilities £98m £128m £(5,758)m £(5,743)m FY FY FY FY FY FY incl inal 24/25 25/26 24/25 25/26 24/
Slide 24: Net debt and Retail free cash flow
Financials Net debt and Retail free cash flow FY FY £m 2025/26 2024/25 Net cash from operating activities 1,865 1,805 of which working capital movements 128 98 of which pension cash contributions (27) (45) Capital expenditure (843) (825) Disposal proceeds, Interest income 64 72 Lease repayments’ (51
Slide 25: Capital expenditure
Financials Sainsbury's Capital expenditure 2026/27 Guidance We expect core retail cash capital expenditure in 2026/27 to be between £800 million and £850 million. FY 24/25 + FY 25/26 FY 26/27e one —@ Maintenance ™ Growth & Efficiency JSainsbury ple April 2026 Preliminary Results 2025/26 25
Slide 26: Balance sheet metrics
Financials Sainsbury's Balance sheet metrics Net debt / EBITDA’ Return on capital employed* 9.0% 8.9% 74% 7.4% f \ \ \ \ \ \ \ 1 f T T T T T T T 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 Guidance FY 25-27 commitment: We continue to target leverag
Slide 27: Shareholder returns
Financials Shareholder returns Dividend per Share Shareholder Returns 24/25 £531m DTS £200m Buyback exc li}30) Dividend Sainsbury's Shareholder Returns 25/26 FCF prAli) Buyback =» ie + py (ou Dividend Buyback Special = Dividend FY FY FY FY 24/25 25/26 24/25 25/26 2026/27 Guidance * £200m will be ret
Slide 28: Summary
Financials Summary What we’ve delivered in FY 25/26 * Grocery volume growth / continued market outperformance * Strong free cash flow generation * Completion of the disposal of our banking operations * Enhanced cash returns to shareholders JSainsbury ple April 2026 Sainsbury's Looking ahead * Total
Slide 29: Cheeseboard
‘Cheeseboard Simon Roberts Chief Executive
Slide 30: Next Level Sainsbury's
Sainsbury's Next Level Sainsbury’s We make good food joyful, accessible and affordable for everyone, every day Loyalt Save and . ° First choice an a a More Argos, invest for food y more often 5 loves to win Attract many more people Build a world-leading Unleash and transform Save £1 billion and to c
Slide 31: More food choice for more customers
More food choice for more customers Consistent value, every day The leader in freshness, availability and innovation A complementary range of relevant products and services Amore resilient UK food system Preliminary Results 2025/26
Slide 32: Consistently delivering for all stakeholders
Consistently delivering for all stakeholders First choice More customers are shopping our full offer for food More customers are choosing 69% of customers shopped both Aldi Price Match Sainsbury’s for their big trolley shop’ and Taste the Difference in the same trolley’ Aldi Price Match Taste the Di
Slide 33: Sustaining our strong competitive position
Consistently delivering for all stakeholders Sustaining our strong competitive position Value Index vs all competitors since year-end 2024/25' -190bps -115bps y ¥ Unchanged Unchanged > > Lidl Aldi Morrisons Asda Tesco 1. Value Reality, February 2026 vs February 2025; Acuity, internal modelling JSain
Slide 34: Consistent focus on value at the centre of plate
Consistently delivering for all stakeholders Consistent focus on value at the centre of plate Centre of Plate Value Index vs all competitors since year-end 2024/25° -210bps -210bps > > | -140bps Lidl Aldi Morrisons Asda Tesco 1, Value Reality, Meat, Fish, Poultry and Produce categories, February 202
Slide 35: Improved value perception for food
Consistently delivering for all stakeholders First choice Improved value perception forfood @ Market HB Sainsbury’s iS Ai ee LNI NI ~ £5.5bn savings nectar for customers since Biggest Aldi Price Match in the market prices ( 5 launch in April 2023 c.350m nectar personalised offers Pl P2 P3 P4 PS P6 P
Slide 36: Market leading Taste the Difference growth
Consistently delivering for all stakeholders Market leading Taste the Difference growth Fastest growing Premium Own Label in the market’ 15% 10% 5% Sainsbury’s Tesco Lidl Morrisons M&S Aldi Waitrose -5% -10% Asda -15% 1. Worldpanel by Numerator Panel (Kantar), Total Fresh & Grocery exc Kiosk Premium
Slide 37: Consistently strengthening our quality and innovation, particularly in Fresh food
Consistently delivering for all stakeholders . . . First choice Consistently strengthening our quality and innovation, particularly in Fresh food >1,200 new Own Brand products launched, c.50% TTD 20% Meat, Fish and Poultry sales now Taste the Difference cyocousres ‘ Best ever availability oats Ef +
Slide 38: Securing the future of good food through long-term supplier partnerships
Securing the future of good food through long-term supplier partnerships British and Irish farms supported > 2, 5 0 0 by multi-year arrangements = spend to protect future of ee £5bn good food over the coming years 60 Of of own-brand fresh food products (0) in contracts >5 years" tT tT f T Stability
Slide 39: Investing to grow and strengthen our food footprint
Investing to grow and strengthen our food footprint More for More investment April 2026 _MEAT & FISH key supermarkets EEE 2026/27 Guidance * We expect to open around 10 new supermarkets and at least 20 new convenience stores * We expect net new space to add around 0.5% to sales * We plan to invest i
Slide 40: Delivering for customers however they want to shop
Consistently delivering for all stakeholders First choice Delivering for customers however they want toshop [ji Strong performance across our channels 15% Food OnDemand * Sales >£700m, up 69% * 70% UK population coverage 10% Higher Aldi Price Match penetration across all channels 5% Improving digita
Slide 41: Delivering for customers however they want to shop
Consistently delivering for all stakeholders First choice Delivering for customers however they want toshop [ji Strong performance across our channels 5% 4% 3% 2% 1% 0% Supermarkets Convenience JSainsbury ple April 2026 I Groceries Online / Food OnDemand contribution Food OnDemand * Sales >£700m, up
Slide 42: Strong growth and market outperformance in clothing
Consistently delivering for all stakeholders First choice Strong growth and market outperformance in for food Tu Clothing Clothing sales growth 7 consecutive quarters of market outperformance” 6% volume growth driven by Essentials and Childrenswear Increased style and quality perception’ 7ppts impro
Slide 43: Personalised, rewarding and integrated loyalty
Personalised, rewarding and integrated loyalty Joy and connection beyond transactions World-leading Nectar360 capabilities Strong coalition of partners Always transparent use of data Preliminary Results 2025/26 43
Slide 44: Taking Nectar to the Next Level
Consistently delivering for all stakeholders Taking Nectar to the Next Level S| ) ES Reward customers Algorithms A winning with points and AI coalition and £ improving customer proposition JSainsbury ple April 2026 Loyalty everyone loves wii Z o R o E A 6 @ @ CQ Insight that enables Targeting Retail
Slide 45: Transforming the way customers experience value
Consistently delivering for all stakeholders Loyalty everyone Transforming the way customers experience value loves Nectar Prices and Your Nectar Prices: key components of our value offer Save over £450 a year. Tap into big savings on your food shop with the Nectar app. Sainsburys {00d fod fora af u
Slide 46: Market Leading End-to-End Support
Market Leading End-to-End Support .
Slide 47: Famous for convenience
Famous for convenience Inspiring choice, always great value Supercharged digital capabilities Accessible and relevant credit, care and services Smarter, simpler service and stock flow Preliminary Results 2025/26
Slide 48: Volume growth in a competitive market
Consistently delivering for all stakeholders Volume growth in a competitive market More Argos, more often Encouraging volume performance Stronger volume performance in lower offset by lower average selling price ticket categories 8% HEE Volume MASP «=@==Sales Growth T Home 6% Customer consideration’
Slide 49: Determined action to build a stronger Argos
Consistently delivering for all stakeholders Determined action to build a stronger Argos Strengthening choice Investing in digital Added value services Driving cost reduction +24% Argos Pay Growth = in App Ap _ Argos Care Pre-order Trade in Bw Dedicated Argos management team accelerating pace of cha
Slide 50: Save and invest to win
Save and invest to win Save £1 billion and invest in transforming our capabilities — taking another big leap forward in efficiency, productivity and customer focus, continuing to build a platform for growth Save and invest to win * £1 billion of structural cost reduction ° Well-invested technology p
Slide 51: Delivered a further £330m of structural cost savings
Consistently delivering for all stakeholders Delivered a further £330m of structural cost savings Save and invest to win On track to deliver Strengthening Simplifying F1bn $1 3bn loss protection Argos operations cost savings: savings delivered \ A c.£330m £1bn delivered in 25/26 savings commitment >
Slide 52: Balanced choices creating long-term value
Sainsbury's Balanced choices creating long-term value TANDOORI MASALA CHICKEN : B20) Structural cost reduction and productivity improvement Committed to Relentless focus Leading on sustaining our on value, quality, innovation strong availability and competitive service position JSainsbury ple April
Slide 53: Appendices
Slide 54: Guidance for 2026/27
Appendix Guidance for 2026/27 Profit * We expect to deliver Total underlying operating profit of between £975 million and £1,075 million * Following completion of the exit from core banking, Financial Services will no longer be reported as a separate operating segment. Finance costs * We expect unde
Slide 55: Capital allocation framework
Appendix Capital allocation framework: long-term value creation Invest in the business to support FY25-FY27: £800-£850m capex per annum, our strategy Retail free cash flow £1.6bn+ 1 2 A solid investment grade ieeneodiet Target leverage of 3.0x-2.4x net debt/EBITDA 3 Deliver strong dividends for shar
Slide 56: Sales growth by quarter
Appendix Sainsbury's Sales growth by quarter 2024/25 2025/26 Total sales performance (%) Qi Q2 Q3 Q4 qi Q2 Q3 Q4 FY Like-for-like sales (exc. fuel) 2.9% 43% 2.9% 4.0% 4.6% 43% 3.4% 3.1% 3.9% Like-for-like sales (inc. fuel) 2.6% 2.2% 0.3% 2.6% 2.2% 2.8% 2.9% 15% 2.5% Total sales performance (%) Qi Q2
Slide 57: Sales performance by channel
Appendix Sales performance by channel FY FY 2025/26 2024/25 Total sales (excluding VAT) performance by channel’ % % Supermarkets (inc. Argos stores in Sainsbury's) 3.1 3.3 Groceries Online® B3 12.2 Convenience 3.0 19 1. Excluding VAT 2. Groceries Online includes sales through Sainsburys.co.uk and sa
Slide 58: Retail margin
Appendix Sainsbury's Retail margin As of 28 February 2026 FY FY 2025/26 2024/25 Change Retail sales (exc. VAT, inc fuel)? £m 33,551 32,630 2.8% Retail underlying EBITDA* £m 2,211 2,192 0.9% Retail underlying EBITDA margin? % 6.59 6.72 (13)bps Retail underlying operating profit* £m 1,025 1,036 (1.1)%
Slide 59: Cash flow and net debt
Appendix Sainsbury's Cash flow and net debt’ FY 25/26 Cash Flow Non- Adjustments for . D&A, share based Senin payments & other 1,267 2,292 wong "07. Capital capital expenditure movements, (425) Net interest (pat, Lease 1,025 corporation 41 repayments® ace on ioe flows? Ordinary (843) Proceeds Divide
Slide 60: Financial metrics
Appendix Financial metrics As of 28 February 2026 Sainsbury's FY FY 2025/26 2024/25 Return on capital employed" 8.9% 9.0% Net debt to EBITDA’ 2.6x 2.6x Fixed charge cover? 2.7x 2.8x Underlying tax rate* 29.2% 28.9% 1 Return is defined as a52 week roling underlying profit. Capital employe is defined
Slide 61: Debt and liquidity
Appendix Sainsbury's Debt and liquidity Borrowing Facility Maturities! Investment Grade credit ratings with Moody’s £700m ,, Revolving credit Facility (Baa3 stable) and Standard & Poor's (BBB stable) £600m == maintained £500m ' £5bn Euro Medium Term Note programme f established in January 2025, £400
Slide 62: Sainsbury's sales area and store numbers
Append: Sainsbury's Sainsbury’s sales area and store numbers As at 28 February 2026 Supermarkets Convenience Total Area Area Area (‘000 sqft) Number (‘000 sqft) Number (‘000 sqft) Number Opening figures 24/25 20,930 599 Opening figures 24/25 2,054 855 Opening figures 24/25 22,984 1,454 Newstores ~~~
Slide 63: Sainsbury's store estate
. . » Append: Sainsbury's ° ? Sainsbury’s store estate As at 28 February 2026 Number of stores Argos store numbers Sqft Under 10,000to 20,000to 40,000 to Over As at Asat sales area 10,000 20,000 40,000 60,000 60,000 Total 1March New Disposals/ 28 February Convenience 885 7 7 7 7 885 2025 stores clos
Slide 64: Sainsbury's store openings and closures
Appendix Sainsbury’s store openings and closures FY 2025/26 H1 Supermarket Convenience New stores New stores Closure Cromer Horsham Crawley Road Local Oxford Street Clements Local Lowestoft Chatham Watling Street Local Felixstowe Brightons — Station Road Local Brightlingsea Hitchin Cambridge Road Lo
Slide 65: Sainsbury's store openings and closures
Nppendis Sainsbury's ° ’ ° Sainsbury’s store openings and closures FY 2025/26 H2 Supermarket Convenience New stores New stores Closures Wynyard Leicester Highcross Street Local Virginia Water — Station Approach Local Tottenham Court Road Local Baljaffray Wimbledon Village— High Street Local Glasgow
Slide 66: Plc Board
Appendix Plc Board Martin Scicluna Chair ws Jo Harlow Non-Executive Director JSainsbury ple April 2026 . , Sainsbury's “ % 2 . | ( } A Simon Roberts Blathnaid Bergin Jo Bertram Katie Bickerstaffe Steve Hare Chief Executive Chief Financial Officer Non-Executive Director Non-Executive Director Non-Exe
Slide 67: Plc Board
Appendix Plc Board Martin Scicluna Chair Date of Appointment: November 2018 (Chair from March 2019) Committee members: + Corporate Responsibility and Sustainability Committee + Nomination and Governance Committee (Chair) Key competencies: Martin brings a wealth of experience from over 30 years’ serv
Slide 68: Plc Board
Appendix Plc Board Jo Bertram Non-Executive Director Date of Appointment: July 2022 Committee members: + Corporate Responsibility and Sustainability Committee + Nomination and Governance Committee Key competencies: Jois a highly talented strategic business leader with significant experience leading
Slide 69: Plc Board
Appendix Plc Board Jo Harlow Non-Executive Director Date of Appointment: September 2017 Committee members: + Corporate Responsibility and Sustainability Committee + Nomination and Governance Committee + Remuneration Committee (Chair) Key competencies: Jo brings a wealth of experience in consumer-fac
Slide 70: Plc Board
Appendix Plc Board Tanuj Kapilashrami Non-Executive Director Date of Appointment: September 2017 Committee members: + Nomination and Governance Committee + Remuneration Committee Key competencies: Tanuj is an international banker with significant experience in strategy, transformation, talent and ch
Slide 71: Operating Board
Appendix Sainsbury's Operating Board Simon Roberts Blathnaid Bergin Rhian Bartlett Graham Biggart Chief Executive Chief Financial Officer Chief Commercial Managing Director Argos, and Sustainability Officer and Chief Strategy Officer! Tracey Clements Patrick Dunne Mark Given Chief Retail, Logistics
Slide 72: Operating Board
Appendix Operating Board Simon Roberts Chief Executive See Appendix 14 Blathnaid Bergin Chief Financial Officer See Appendix 14 JSainsbury ple April 2026 Rhian Bartlett Chief Commercial and Sustainability Officer Date of Appointment: November 2020 Key competencies: Rhian joined the Operating Board i
Slide 73: Operating Board
Operating Board Tracey Clements Chief Retail, Logistics and Supply Chain Officer Date of Appointment: March 2022 Key competencies: Tracey joined the Operating Board as Chief Retail, Logistics and Supply Officer in September 2025. In her role, Tracey oversees Sainsbury's Retail, Digital, Customer Exp
Slide 74: Supplementary financial details
Appendix Supplementary financial details 1. Weighted average number of shares 3. Dividend 2025/26 2024/25 2025/26 2024/25 Weighted average number 2,274.2 2,330.6 Interim 4.1p 3.9p of shares (m) Final 9.6p 97p Diluted weighted average 2,320.8 2,374.1 number of shares (m) Total Bazp Bp Special 11.0p -
J Sainsbury Plc Ord — FY2025/26 Earnings Presentation on 6ix