Tesco Plc · LSE:TSCO
Tesco — Shareholder Meeting (June 2017)
31 slides from Tesco's shareholder meeting presentation, Jun 16, 2017
Slide 1: Welcome to your AGM
Welcome to your AGM 1
Slide 2: John Allan, Chairman
John Allan Chairman
Slide 3: Serving Britain's shoppers a little better every day
Serving Britain’s shoppers a little better every day. 16 June 2017 Dave Lewis, Group Chief Executive 3
Slide 4: Agenda
Agenda. • A year of strong performance • Our six strategic drivers • 1Q update • Unlocking new growth 4
Slide 5: A year of strong performance
A year of strong performance. +4.3% +30% +9.1% £49.9bn £47.9bn £2.3bn £1,280m £2.1bn £985m FY 15/16 FY 16/17 FY 15/16 FY 16/17 FY 15/16 FY 16/17 Positive sales growth Strong profit growth Strong cash generation 5
Slide 6: A year of strong performance – UK
A year of strong performance – UK. +1.6% +1.7% +140,000 Volume-based recovery Transaction growth Increasing footfall 6
Slide 7: A year of strong performance – Better service
A year of strong performance – Better service. “I don’t queue” 129,635 80% hours FY 14/15 FY 15/16 FY 16/17 Tesco Big 4 Speed of service Record helpfulness Colleagues closer to customers 7
Slide 8: A year of strong performance – Record availability
A year of strong performance – Record availability. Food stock Evening availability £935m £836m 96% £755m FY 14/15 FY 15/16 FY 16/17 FY 14/15 FY 15/16 FY 16/17 Tesco Big 4 Sales-based availability Clearer backrooms Available at all times 8
Slide 9: A year of strong performance – Price
A year of strong performance – Price. 6% 36% 32% 15% lower Lower prices Fewer promotions Depth of promotions 9
Slide 10: A year of strong performance – Right range
A year of strong performance – Right range. +7% 7% +3% cases Further range reduction Further increase One touch replenishment in own label space 10
Slide 11: A year of strong performance – A great place to work
A year of strong performance – A great place to work. +7 NPS 83% 81% 70% 65% FY 14/15 FY 15/16 FY 16/17 FY 15/16 FY 16/17 Engaged colleagues A simpler job A great place to shop 11
Slide 12: A year of strong performance – Supplier partners
A year of strong performance – Supplier partners. +27% +30% 74% +19% 74% 67% 66% 63% 55% 49% 44% 36% FY 14/15 FY 15/16 FY 16/17 FY 14/15 FY 15/16 FY 16/17 FY 14/15 FY 15/16 FY 16/17 Simple, transparent & Communicates well & Treats me fairly easy to deal with available when needed 12
Slide 13: A year of consolidation – International
A year of consolidation – International. Asia +4.0% +0.5% Europe +0.5% Volume growth Sales growth Portfolio simplification 13
Slide 14: Our six strategic drivers
Our six strategic drivers. 1. A differentiated brand 2. Reduce operating costs by a further £1.5bn 3. Generate £9bn cash from operations 4. Maximise the mix to achieve a 3.5% – 4.0% Group margin 5. Maximise value from property 6. Innovation 14
Slide 15: Our six strategic drivers – Progress
Our six strategic drivers – Progress. 1. A differentiated brand • YouGov most improved brand 2. Reduce operating costs by £1.5bn • £226m of cost savings 3. Generate £9bn cash from operations • £2.3bn retail cash generation 4. Max the mix to achieve a 3.5%-4.0% Group margin • Group operating margin 1
Slide 16: 1Q update
1Q update.
Slide 17: Like-for-like performance
Like-for-like performance. +1.0% +2.2% (3.0)% Group UK & ROI International 17
Slide 18: Strong fresh food growth
Strong fresh food growth. 2.7% +1.6% +5.3% Like-for-like sales UK fresh food volumes ROI fresh food volumes growth in food 18
Slide 19: Food Love Stories
Food Love Stories. FRESH, QUALITY mary le | IN STORE AND ONLINE
Slide 20: Helping customers – Value
Helping customers – Value. 20
Slide 21: Helping customers – Health
Helping customers – Health. Charity Round Up Awareness – Move – Little Swaps Free health checks 6.6 million miles 21
Slide 22: Helpful Little Swaps
Helpful Little ‘ e@ lower in saturated fat © lower in sugar Dolmio Bolognese Sauce Low Fat 320g Tesco Goodness Cereal Bars Banana6x Zig 89p Walkers Baked Ready Salted Crisps 6 x 25g 90p Nestlé Oat Cheerios Low Sugar 325¢ Coca Cola Diet Coke 1.251 Bottle ‘Tesco Low Fat Greek Style Yoghurt 500g, a Dif
Slide 23: Consistent tangible progress
Consistent tangible progress. Cash Sales Profit Customer Colleague Supplier For satisfaction engagement partners shareholders 23
Slide 24: Britain's favourite supermarket – third year running
Britain’s favourite supermarket – third year running. 24
Slide 25: Unlocking new growth: Tesco & Booker
Unlocking new growth. TESCO & BOOKER Creating the UK’s leading food business 25 TESCO
Slide 26: The UK's leading food business
The UK’s leading food business. PRODUCT CHANNELS CUSTOMER Fresh Packaged GM Clothing Professional In home Improved choice / range Large stores Enhanced volume for efficiency Small stores EXISTING e.g. full crop utilisation Online Wholesale NEW Out of home Incremental to standalone 3.5% - 4.0% margin
Slide 27: The UK's leading food business: growth, synergies, multiple
The UK’s leading food business. At least At least 9x EV/EBIT £25m £175m inc. synergies Growth Synergies Multiple 27
Slide 28: Summary
Summary. • Full Year Results ahead of our expectations • 30% increase in Group operating profit before exceptional items • 60% increase in UK & ROI operating profit before exceptional items • Strong momentum in 1Q • Continuing to deliver on our six strategic drivers • Creating long-term value for al
Slide 29: Thank you
Thank you. 29
Slide 30: Voting
Voting 30 TESCO
Slide 31: Q&A
Q&A 31