J Sainsbury : Preliminary Results 2019/20 Booklet

Preliminary Results

2019/20

Kevin O'Byrne

Chief Financial Officer

Agenda

01		02		03
Financial highlights	19/20 performance	COVID-19 update

3Preliminary Results 2019/20 - April 2020

Group performance overview

£m	2019/20	2018/19	Change
Underlying results1
Group sales (inc VAT)	32,394	32,412	0%
Retail operating profit	938	981	4%
Financial Services operating profit	48	31	55%
Underlying profit before tax	586	601	2%
Underlying basic EPS	19.8p	20.7p	4%
Retail free cash flow	611	456	34%
Net debt2	(6,947)	(7,346)	5%
Non-lease net debt2	(1,179)	(1,522)	23%
Statutory results
Items excluded from underlying results	(331)	(399)	17%
Profit for the financial period before tax	255	202	26%
Basic EPS	5.8p	7.6p	24%	1Full breakdown of definitions available in the
				Alternative Performance Measures
				2Including perpetual securities

4Preliminary Results 2019/20 - April 2020

Retail sales

(0.6)%(0.4)%

LFL sales growth1	Total sales growth1
0.2%		Categories	Channels
Sales from		0.4%	(0.1)%
net new space	1
	Grocery	Supermarkets2
		(2.9)%	1.3%
		General	Convenience
		Merchandise	7.6%
		1.2%
		Groceries
		Clothing	Online

1. Sales including VAT, excluding fuel
2. Supermarket sales include Argos stores in Sainsbury's sales
3. Guidance on openings and closures is subject to potential disruption fromCOVID-19

2020/21 FY Guidance3

• Expect to open around 2 new Sainsbury's supermarkets and around 15 convenience stores
• Expect to close around
  8 supermarkets and around
  14 convenience stores, as part of announced property closure programme
• Expect to open35-40 Argos in Sainsbury's and close around 50 Argos standalone stores

5Preliminary Results 2019/20 - April 2020

Sales Momentum

Grocery:Total sales growth

2.0%

Q1	0.6%	0.4%
-0.5%	Q2	Q3	Q4

General Merchandise: Total sales growth

Q1 Q2 Q3 Q4

0%

	Total GM	Argos
-5%	(inc. Habitat)

JS GM

-10%

Clothing:Total sales growth

3.3%	4.4%
	2.5%
Q1
Q2	Q3	Q4

-4.5%

6Preliminary Results 2019/20 - April 2020

Sales performance versus market

Grocery:Volume growth1

Argos:Value growth v BRC2

4%		Q4
				Argos YoY
		19/20
		Q2		0%
0%		19/20			BRC YoY
Total	Q3			(excluding Argos)
	grocers	19/20			FY 2019/20
		Q1	Tesco	Asda	Clothing:Value Growth (%YOY)3
		19/20
		Sainsbury's			Sainsbury's
-5%				Morrisons
			0%	Total market

1Kantar unit growth YoY. Q1: 11 Mar - 30 Jun 2019, Q2: 1 Jul - 22 Sep, Q3: 23 Sep - 5 Jan, Q4: 6 Jan - 8 Mar 2020

2	Argos vs BRC non-foodnon-clothing market, 52 weeks to 7 March 2020
3	Kantar world panel 52 weeks to 8 March 2020	8 Mar 19		9 Mar 20
7	Preliminary Results 2019/20 - April 2020

Underlying profit before tax

	UPBT Waterfall (£m)									H1/ H2 UPBT
																							+8%
																							348
		601
							19		(8)
																			322
				(43)					JVs		586
														-15%
						17	Interest							279
				RetailFinancial										238
					Services
													18/19	19/20	18/19	19/20
18/19 UBPT					19/20 UBPT	H1				H2

8Preliminary Results 2019/20 - April 2020

Items excluded from underlying results

£m	2019/20	2018/19
Retail restructuring programme	(32)	(81)
Financial Services transition and other	(29)	(70)
Argos integration costs	-	(40)
Asda transaction costs	-	(46)
Defined benefit pension expenses	19	(118)
Other	7	(44)
Total ex. Property strategy	(35)	(399)
Property strategy programme	(296)	-
Total	(331)	(399)

Property Strategy Programme

Impairment

126charges

Store closure	126
write-downs

8	36
		Other closure
Other closure
costs - non-cash
costs - cash

9Preliminary Results 2019/20 - April 2020

Financial services

	Financial Services UPBT (£m)	Customer Assets (£bn)	Deposits
	+10%		+6%		+5%
	68	75		7.0	7.4
	34		2.6			£6.3bn
	24	Bank	2.9	Personal
			£6.0bn
						loans
	7	14	AFS	1.7	2.0	Credit cards
	37
		(recognised in
		27	Financial Services)	1.4	1.9	Mortgages
		AFS
			(recognised in	0.8	0.9	Store cards
			Retail)
	2018/19	2019/20		Feb 19	Feb 20		2018/19	2019/20
10	Preliminary Results 2019/20 - April 2020

Financial Services Costs

Costs1(£m)

+5%

286	300
		Depreciation
			Colleague
			costs

Other expenses

2018/19 2019/20

Headcount
-12%
2,535
	2,226
Feb 19	Feb 20

No. of registered customers to AFS mobile App

+39%
	1.7m
1.2m
2018/19	2019/20

1Group contribution basis

11Preliminary Results 2019/20 - April 2020

Retail capital expenditure

Retail capital expenditure

£599m£544m

2019/202018/19

2020/21 FY Guidance

• Retail capital expenditure is expected to be around£550m-£600m per annum over the medium term
• Update on 2020/21 to be given at Interim Results in November

Maintenance

Growth

Efficiency

Argos integration

Core retail capital expenditure (£bn)

0.9

1.8

2.6	1.6
Supply chain and IT

0.7Extensions and refurbishments

0.5New store development

5 years	5 years
to 14/15	to 19/20

12Preliminary Results 2019/20 - April 2020

Net debt and retail free cash flow

£m - Restated for IFRS 16	2019/20	2018/19
Net cash from operating activities	1,453	1,437
Capital expenditure1	(599)	(508)
Disposal proceeds2	224	78
Bank capital injections	(35)	(110)
Lease repayments3	(432)	(441)
Retail free cash flow	611	456
Dividends paid on ordinary shares	(247)	(224)
Other	35	(3)
Movement in net debt	399	229
Opening net debt4	(7,346)	(7,575)
Closing net debt4	(6,947)	(7,346)
Of which:
Lease liabilities	(5,768)	(5,824)
Net debt excluding lease liabilities5	(1,179)	(1,522)		(343)

2020/21 FY Guidance

• No capital injections into the Bank are expected
• Expect underlying retail depreciation and amortisation of around £1.2bn, including c.£500m right of use asset depreciation
• Net finance costs of between£370m-£380m, including c.£310m lease interest in 2020/21, following the introduction of IFRS 16

1. Excludes Argos integration capital expenditure in 18/19
2. Includes dividends received from JVs, net of JV capital injections
3. Includes initial direct costs onright-of-use assets
4. Net debt definition excludes derivatives not linked to borrowings, and includes perpetual securities as debt
5. FY18/19 Net Debt exc. Leases of £1,522m compares to the previously reported Net Debt of £1,636m less £(122)m of finance leases, plus £8m other (predominantly derivatives no longer reported within net debt)

13Preliminary Results 2019/20 - April 2020

Balance sheet targets

• Non-leasenet debt reduction of at least £750m over the three years from 18/19 to 21/22
• Medium leverage reduction targets
• • Net debt/EBITDAR2less than 3x

Net debt exc. Lease liabilities1(£m)

2,125

(603)

1,5223(343)

1,1793(750)+

Target

£m	FY	FY
2019/20	2018/19
Net debt	(6,947)	(7,346)
Of which lease liabilities	(5,768)	(5,824)
Net debt exc. leases1	(1,179)	(1,522)3

FY	FY	FY		FY
15/16	18/19	19/20	21/22

1. Net debt definition now excludes derivatives not linked to borrowings, and includes perpetual securities as debt
2. Net debt (inc. perpetual securities) on apost-IFRS 16 basis divided by Group underlying EBITDAR. We previously disclosed adjusted Net debt/ EBITDAR, but net debt on a post-IFRS 16 basis now includes lease liabilities
3. FY18/19 Net Debt exc. Leases of £1,522m compares to the previously reported Net Debt of £1,636m less £(122)m of finance leases, plus £8m other (predominantly derivatives no longer reported within net debt)

14Preliminary Results 2019/20 - April 2020

Summary

• Strong customer response to changes in our Grocery business
• General Merchandise remained tough
• Good progress on Financial Services
• H2 profit growth
• Strong free cash flow, net debt reduction in line with guidance

15Preliminary Results 2019/20 - April 2020

Mike Coupe

Chief Executive Officer

Performance

Our purpose - To help our customers live well for less

Our priorities

Be competitive

Distinctive

Personalised

Fast, friendly

Drive

Be a place

Net Zero

on price

products and

and seamless

and convenient

efficiency

where we all

by 2040

categories

physical and

to reinvest

love to work

digital

18Preliminary Results 2019/20 - April 2020

Improved grocery value

Commodity Value Index1		Base Price Index1
					-60bps
	-390bps
							-30bps		Cheapest Supermarket for
									Branded Groceries
18/19	19/20		14/15	18/19	19/20	in 2019
									Which? Awards 2019

1

Be

competitive

on price

1Sainsbury's value index, based on Edge by Ascential SKU matching data, to March 2020

19Preliminary Results 2019/20 - April 2020

Major growth initiatives delivered in FY19/20

12,500			More than 1,000 major store projects
Investments
£164m	Invested in	Invested in	Invested in
Invested in 19/20	451	362	398
	supermarkets	convenience	Argos stores

4

Fast, friendly

and

convenient

Beauty 124	Food to go 210	Digital 256
Rapid Exit & SmartShop 118	Ambient 250	Argos in Sainsbury's 25
Tu features 110
Food Partners & Concessions 93
Wellness 42
GM rebalance 40

20Preliminary Results 2019/20 - April 2020

Improving customer satisfaction ranking

All supermarket measures improved year on year

CSAT scores %1

19/20 + 20/21 to date

18/19

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

2019

2020

1Lettuce Know in-store programme, combined Food Business

4

Fast, friendly

and

convenient

21Preliminary Results 2019/20 - April 2020

Channels:Convenience

On the Go

Neighbourhood hub

4

Fast, friendly

and

convenient

Mansion House

Woodhall Spa

22Preliminary Results 2019/20 - April 2020

Channels:Groceries Online

4

Fast, friendly

and

convenient

Items picked per hour improvement

Sales (£bn)and YOY growth rates

1.8

	+14%		+7.6%
		1.6
		+6.9%
+13%		1.4	+6.8%
		+8.2%
+10%		1.2

1.0

0.8

FY17/18

FY18/19

FY19/20

15/16

16/17

17/18

18/19

19/20

23Preliminary Results 2019/20 - April 2020

Financial Services Priorities

3

Personalised and seamless physical and digital

Reshape

the balance sheet

• Stop mortgage origination
• Develop AFS proposition
• Improve margins
• Improve card and insurance momentum

Simplify

the organisation

• Right size the cost base
• Rationalise product offering
• Review vendor/supplier arrangements
• Optimisecross-business synergies

Strengthen

the business

• Focus on:
• • Operational resilience
  • Conduct
  • Capital efficiency
• Build core competency in:
• • Customer experience
  • Digital
  • Data and analytics
  • Credit/ operational risk
  • Partnerships

24Preliminary Results 2019/20 - April 2020

Nectar

Digital Nectar		Coalition strengthened		Nectar 360

4.5m+

digital collectors

Oct Nov Dec Jan Feb Mar

20192020

3

Personalised and seamless physical and digital

25Preliminary Results 2019/20 - April 2020

Digital

Digital Sales

SmartShop

Single Search

3

Personalised and seamless physical and digital

	£6.3bn	•Rolled out to all
		supermarkets
		•Sales participation in	Seamless	Universal
		handset stores: 18%	financial	discovery
			services
£1.1bn				Single
				basket
14/15	19/20

26Preliminary Results 2019/20 - April 2020

Strategic cost transformation: 5 year plan

All programmes largely in execution

	Converge				Tackle		End to end
				fixed cost		reviews
	Technology, Digital and Corporate		Services
	Retail Operations, Marketing and Commercial Operations
								£250-£350m
			Other central support
					Logistics and Supply Chain
	Shared Services/ Business Process Optimisation
	Capital prioritisation							Project A
	GNFR procurement							Project B		£150-£250m
		Property strategy		Project C
									Project D
					£400-£600m
	Well progressed	Execution underway	In planning

5

Drive

efficiency to

reinvest

27Preliminary Results 2019/20 - April 2020

Seven key areas of focus

We will invest £1bn over the next 20 years

7

Net Zero by

2040

Reduce

Minimise

Healthy

Reduce

Reduce

Increase

Net positive

carbon

use of

sustainable

use of

food

recycling

for

emissions

water

diets

plastic

waste

biodiversity

packaging

We will use science based targets and report progress

against these every six months

28Preliminary Results 2019/20 - April 2020

COVID-19

COVID-19:Sainsbury's Timeline

Feeding the nation

Keeping our customers and colleagues safe

Supporting our communities

12 weeks full pay

Contacted

for extremely

Strict social

450,000 vulnerable

14 days full pay for

vulnerable

Closed

distancing measures

customers

c.50% increase

self-isolating

colleagues /

standalone

for stores, including

and prioritised

colleagues

shielding

Argos stores

safety screens

for online

in online slots

March 15

17

19

20

22

23

23

24

25

April 3

8

10

27

Product

Closed

Priority shopping

Thank you

Immediate

Donated £3m Donated over £4m

purchasing

cafes; meat,

for elderly,

payment

payment terms

to Fareshare

to Comic Relief's

limits

fish and pizza

vulnerable,

for store, DC

for at least 1,500

'Big Night In'

counters

NHS & social

and Careline

small suppliers

800,000 vulnerable

care workers

colleagues on

customers contacted

hours worked	and prioritised for
	online

30Preliminary Results 2019/20 - April 2020

Initial Impact: Sales Shape

Grocery

40%

20%

0%

(20)%

51

52

1

2

3

4

5

6

7

Week

Clothing

20%

0%

(20)%

(40)%

(60)%

(80)%

51

52

1

2

3

4

5

6

7

Week

Sales figures have been seasonally adjusted

Total General Merchandise

40%

20%

0%

(20)%

51

52

1

2

3

4

5

6

7

Week

Fuel

20%

0%

(20)%

(40)%

(60)%

(80)%

51

52

1

2

3

4

5

6

7

Week

31Preliminary Results 2019/20 - April 2020

Initial Impact: Groceries Online

Groceries Online Sales

Click & Collect

Home Delivery

51	52	1	2	3	4	5	6	7
Week

32Preliminary Results 2019/20 - April 2020

Initial Impact: SmartShop

Sales Participation1

35%
30%
25%
20%
15%	51	52	1	2	3	4	5	6	7

Week

1Average sales participation of handset stores

33Preliminary Results 2019/20 - April 2020

Initial Impact: Argos

Average weekly sales by fulfilment channel (£m)

100

80
	Walk
	+86%	Home Delivery
60		-in
40
		+32%	Click & Collect
20
0
	Q4 19/20	Since Argos store

closures

34Preliminary Results 2019/20 - April 2020

Sales Outlook

Base case

Key assumptions - sales

• Q1:Lockdown
• Q2:Continued disruption
• H2:Normalisation but a weaker economy

Net FY impact

• Grocery positive
• General merchandise, clothing and fuel volumes negative

Sales Growth Assumptions (%)

General	Clothing	Fuel
Merchandise
H1	H2	H1	H2	H1	H2

H1 H2

Grocery

35Preliminary Results 2019/20 - April 2020

Profit Outlook

Base case

Higher Retail Costs

• Materially higher operating expenses
• Stock clearance - clothing and seasonal
• Reduced tenant and concession income

Sales weakness		Financial Services
•General Merchandise		•Travel Money
•Clothing		•ATMs
•Fuel		•Reduced consumer spend
		•Impairments
		•Colleague absence
		•Costs

£500m+

profit impact

36Preliminary Results 2019/20 - April 2020

Profit Outlook

Base case

	Year on Year Profit Impact
£500m+			£500m+
•	Material COVID-19 related costs		•Grocery sales
•	GM, clothing and fuel sales
	•£450m business
•	Stock write-downs
	rates relief
•	Financial services

Net impact

unchanged

37Preliminary Results 2019/20 - April 2020

Liquidity

Significant financing headroom

Financial resilience stress testing

Significant headroom - cash and committed funding:

• £1.45bn RCF undrawn at March year end
• • £500m now drawn down for prudence
• Capex H2 weighted

Financial Services balance sheet is strong

• Regulatory capital surplus, significant excess liquidity
• Confident that business will not require capital from Group

38Preliminary Results 2019/20 - April 2020

Dividend

Dividend decision deferred

Prudent approach

• Wide range of potential outcomes
• Visibility on full impact ofCOVID-19 will be greater later in the year

39Preliminary Results 2019/20 - April 2020

Summary

Results

• Good momentum in our Grocery business
• Coming together as one multi brand, multi channel business
• Strong cash generation

COVID-19 Response

• Great response across the business toCOVID-19; supporting customers, colleagues, communities and suppliers
• Strength and flexibility of the multi brand multi channel platform
• Balance sheet strength helping support suppliers, tenants and concessions

Outlook

• Significant incremental costs associated withCOVID-19 response
• Business rates relief and uplifts in grocery sales likely to broadly offset incremental costs and weaker general merchandise, clothing and financial services contributions
• Balance sheet strong, liquidity good, prudent deferral of dividend decision

40Preliminary Results 2019/20 - April 2020

Q&A

Appendices

Guidance for 2020/21

Space

• Expect to open 2 new Sainsbury's supermarkets and around 15 convenience stores
• Expect to close around 8 supermarkets and around 14 convenience stores, as part of announced property closure programme
• Expect to open35-40 Argos in Sainsbury's, and close around 50 Argos standalone stores

Depreciation and amortisation

• Expect depreciation and amortisation of around £1.2bn, including c.£500m right of use asset depreciation

Financial Services

• We expect the financial services business to make a loss
• No capital injections into the Bank are expected

One-off items

• Property strategy programme one off costs announced in 19/20 expected to be£330m-£350m in total (£296m in 2019/20). Since the initial announcement at the Capital Markets Day in September the programme has been revisited and this has resulted in additional planned closures. Total cash costs of c.£50m (£8m in 19/20)

Finance costs

• Net finance costs of between£370m-£380m, including around £310m lease interest, following the introduction of IFRS 16

Capital expenditure

• Retail capital expenditure is expected to be around£550m-£600m per annum over the medium term
• Update on 2020/21 to be given at Interim Results in November

Net debt

• Expectnon-lease net debt to reduce by at least £750m over the three years from 2018/19 to 2021/22
• Update on 2020/21 net debt outturn to be given at Interim Results in November

Tax rate

• Expect an underlying tax rate of around 25 per cent

APPENDIX1Preliminary Results 2019/20 - April 2020

1

Financial services

£m	FY	FY
2019/20	2018/19	Change
Total income1	444	439	1%
Underlying operating profit	48	31	55%
Customer lending2	£7.4bn	£7.0bn	6%
Customer deposits	£6.3bn	£6.0bn	5%
Active customers - Bank	2.12m	2.01m	5%
Active customers - Argos FS3	2.24m	2.14m	5%
Cost/income ratio	71%	71%	0 bps
Net interest margin4	3.4%	3.8%	40 bps
Bad debt as a percentage of lending5	1.1%	1.6%	50 bps
CET 1 ratio6	14.1%	13.7%	40 bps
Total capital ratio7	17.0%	16.7%	30 bps
Total Resource8	2,226	2,535	12%

1. Net interest, net commission and other operating income
2. Amounts due from customers at the Balance Sheet date in respect of loans, mortgages, credit cards and store cards net of provisions
3. Prior year restated

4	Net interest receivable / average interest-bearing assets	7	Total capital / risk-weighted assets
5	Bad debt expense / average net lending	8	FTE and Contractors
6	Common equity tier 1 capital / risk-weighted assets

APPENDIX2Preliminary Results 2019/20 - April 2020

Price Quality Framework helps us fund investment

PQF implemented (cumulative)

49

Range reviews

63%

Total volume

Reduced SKU count

operational efficiencies

Increased sales/volume intensity

operational efficiencies

Improved Value Index

more competitive

More distinctive range

more reasons to shop at Sainsbury's

Cash gross profit +3.4%

APPENDIX3Preliminary Results 2019/20 - April 2020

Property Strategy on track

Growth:

New Space

Value Creation:

MUDs

Efficiency:

Store Closures

What we said at CMD

Openings over 5 years:

c.10supermarkets

c. 80Argos in Sainsbury's c. 110convenience stores

Net receipts of

£150-£200m by 2024

Closures over 2 years:

10-15supermarkets

60-70Argos stores

30-40convenience stores

Progress to date		Progress to come
19/20		20/21*
2supermarkets		2supermarkets
25Argos in Sainsbury's		35-40Argos in Sainsbury's
13convenience stores		c. 15convenience stores
Good progress made		On track to deliver
19/20		20/21*
2supermarkets		c. 8supermarkets
27Argos stores		c. 50Argos stores
27convenience stores		c. 14convenience stores

• 20/21 openings and closures programme is subject toCOVID-19 disruption

APPENDIX4Preliminary Results 2019/20 - April 2020

Sainsbury's sales area and store numbers

As at 7 March 2020

Supermarkets				Convenience				Total
	Area				Area				Area
('000 sq ft)	Number	('000 sq ft)	Number	('000 sq ft)	Number
Opening figures 2019/20	21,210	608		Opening figures 2019/20	1,934	820		Opening figures 2019/20	23,144	1,428
New stores	54	2		New stores	35	13		New stores	89	15
Closures	(43)	(2)	Closures	(74)	(27)	Closures	(117)	(29)
Replacement stores	-	-		Replacement stores	3	1		Replacement stores	3	1
Extensions	-	-		Extensions	-	-		Extensions	-	-
Refurbishments / downsizes	-	-		Refurbishments / downsizes	-	-		Refurbishments / downsizes	-	-
Space optimisation	(54)	-		Space optimisation	-	-		Space optimisation	(54)	-
Closing figures FY 2019/20	21,167	608		Closing figures FY 2019/20	1,898	807		Closing figures FY 2019/20	23,065	1,415

APPENDIX5Preliminary Results 2019/20 - April 2020

Sainsbury's store estate

As at 7 March 2020

Number of stores

Sq ft	Under	10,000 to	20,001 to	40,001 to	Over
sales area	10,000	20,000	40,000	60,000	60,000	Total
Convenience	807	0	0	0	0	807
Supermarkets	45	123	197	177	66	608
Total stores	852	123	197	177	66	1,415

Space by store size ('000 sq ft)

Sq ft	Under	10,000 to	20,001 to	40,001 to	Over	Total
sales area	10,000	20,000	40,000	60,000	60,000
Convenience	1,898	-	-	-	-	1,898
Supermarkets	350	1,851	5,789	8,593	4,584	21,167
Total stores	2,248	1,851	5,789	8,593	4,584	23,065

15 Habitat stores, 11 Habitat stores in Sainsbury's

Argos and Habitat store numbers

	As at	New	Disposals/	As at
9 March 2019	stores	closures	7 March 2020
Argos stores	594	1	(25)	570
Argos in Sainsbury's	281	25	-	306
Argos in Homebase	8	-	(2)	6
Other	-	-	-	-
Argos total store numbers	883	26	(27)	882
Habitat1	16	-	-	16
Collection points	317	6	(42)	281

APPENDIX6Preliminary Results 2019/20 - April 2020

Sainsbury's investment programme

2019/20

Supermarkets			Convenience
New stores			New stores		Closures	Q1
South Woodham Ferrers	Q3		Milton Keynes, Brooklands District Cent	Q1	Mayfair
Olney	Q3		Bromley High St	Q1	Warren Street	Q2
			Leeds, Wike Ridge Lane	Q1	Greenwood Ave	Q3
Closures			Salford, Harbour City	Q2	Gateford Rd	Q2
Bitterne West	Q1		Canterbury High St	Q2	Bradford Keighley Road	Q3
Bracknell	Q4		Aylesbury, Berryfields Local Centre	Q3	Merrion Centre	Q3
			Bishopton , Dargavel Village	Q3	Bricknell Ave	Q3
			Dundee, Perth Road	Q3	Brockenhurst, Brookley Road	Q3
			Oxford, Park End Street	Q3	Glasgow, Sauchiehall St	Q3
			Bristol, Lyde Green	Q3	Selkirk	Q3
			Woodhall Spa, Tattershall Road	Q3	Portsmouth, London Road	Q3
			Harmondsworth, Speedbird Way	Q4	Biggar High St	Q3
			Battersea Park Station	Q4	Gloucester Cres	Q3
					Leicester, Narborough Road	Q3
			Replacement
				Wealdstone	Q3
			Mayfair, Stratton St	Q2	Gerrards Cross, Packhorse Road	Q3

Spring Bank	Q3
Hessle Road	Q3
Newington	Q3
Edgehill Road	Q3
Weston Street	Q3
Edinburgh, Whitehouse Rd	Q3
Aberdeen, Union Street	Q3
Crescent Road	Q4
The Forge	Q4
Linthorpe Road	Q4
Nuthall Rd	Q4

APPENDIX7Preliminary Results 2019/20 - April 2020

Retail margin

£m	FY	FY	Change
	2019/20	2018/19
Retail sales(inc VAT, inc fuel)	31,825	31,871	0.1%
(exc VAT, inc fuel)	28,424	28,466	0.1%
Retail underlying EBITDAR1	2,125	2,152	1.3%
Retail underlying EBITDAR margin %2	7.48	7.56	8bps
at constant fuel prices	7.48	7.56	8bps
Retail underlying operating profit3	938	981	4.4%
Retail underlying operating margin %4	3.30	3.45	15 bps
at constant fuel prices	3.30	3.45	15 bps

1. Retail underlying operating profit before net rental income of £10 million and underlying depreciation and amortisation of £1,197 million
2. Retail underlying EBITDAR divided by underlying retail sales excluding VAT
3. Retail underlying earnings before interest, tax and Sainsbury's underlying share ofpost-tax profit from joint ventures
4. Retail underlying operating profit divided by underlying retail sales excluding VAT

APPENDIX8Preliminary Results 2019/20 - April 2020

Financial ratios

£m	FY	FY
	2019/20	2018/19
Return on capital employed %1	7.4	7.4
Net debt to EBITDAR (times)2	3.2	3.3
Fixed charge cover (times)3	2.7	2.6
Underlying tax rate %	25.4	24.5
Core retail capex / sales4	1.9	1.6

1. ROCE: Return is defined as a 52 week rolling underlying profit before interest and tax. Capital employed is defined as group net assets excluding the pension deficit/surplus and excluding net debt. The average is calculated on a 14 point basis.
2. Net debt of £6,947 million includes lease obligations under IFRS 16 and perpetual securities treated as debt, divided by Group underlying EBITDAR of £2,203 million.
3. Group underlying EBITDAR divided by rent (both capital and interest) and net underlying finance costs, where interest on perpetual securities is treated as an underlying finance cost.
4. Includes retail sales inc vat inc fuel

APPENDIX9Preliminary Results 2019/20 - April 2020

Plc Board

Martin Scicluna	Mike Coupe	Kevin O'Byrne	Dame Susan Rice	Jean Tomlin
Chairman	Chief Executive	Chief Financial	Senior	Non-Executive Director
		Officer	Independent Director

David Keens	Matt Brittin	Brian Cassin	Jo Harlow	Simon Roberts
Non-Executive Director	Non-Executive Director	Non-Executive Director	Non-Executive Director	Chief Executive
				from 1 June 2020

APPENDIX10Preliminary Results 2019/20 - April 2020

Plc Board

Martin Scicluna

Chairman

Appointment to the Board

Martin joined the Board as Chairman Designate and Non- Executive Director on 1 November 2018. He was appointed Chairman of the Board on 10 March 2019.

Committee membership

Chair of the Nomination Committee and member of the Corporate Responsibility and Sustainability Committee.

Skills and experience

Martin is Chairman of RSA Insurance Group plc and was previously Chairman of Great Portland Estates plc. He brings a wealth of past and current experience from over 25 years' service as an executive and non-executive board director in a wide range of companies.

Career experience

Previous roles include Chairman of Great Portland Estates plc, Senior Independent Director and Chair of the Audit Committee of Worldpay Inc., and Non-Executive Director and Chair of the Audit Committee of Lloyds Banking Group plc. He was a partner at Deloitte LLP for 26 years, serving as Chairman from 1995 to 2007, where his clients included Dixons, WH Smith, Alliance Unichem and Cadbury.

Current directorships/business interests

Chairman of RSA Insurance Group plc.

Mike Coupe

Chief Executive Officer

Appointment to the Board: 1 August 2007

Mike has served as an Executive Director since 1 August 2007 and as Chief Executive Officer since 9 July 2014.

Committee membership

Corporate Responsibility and Sustainability Committee

Skills and experience

Mike has vast retail industry experience in trading, strategy, marketing, digital and online functions, as well as multi-site store experience. He has applied this knowledge to manage the business and to implement the strategy and policies approved by the Board.

Career experience

Mike joined Sainsbury's from Big Food Group, where he was a board director of Big Food Group PLC and Managing Director of Iceland Food Stores. He previously worked for both Asda and Tesco PLC, where he served in a variety of senior management roles.

Kevin O'Byrne

Chief Financial Officer

Appointment to the Board: 9 January 2017

Skills and experience

Kevin brings a wealth of retail and finance experience to the Board from his various Chief Executive and Chief Financial Officer roles. His skills and experience in leading Finance and driving performance improvement provide the business with valuable expertise in pursuing its strategy.

Career experience

Kevin was previously Chief Executive Officer of Poundland Group Limited until December 2016 and held executive roles at Kingfisher plc from 2008 to 2015, including Divisional Director UK, China and Turkey, Chief Executive Officer of B&Q UK & Ireland and Group Finance Director. Prior to this, he was Group Finance Director of Dixons Retail plc and European Finance Director of Quaker Oats. He was a Non-Executive Director of Land Securities Group PLC from 2008 to September 2017, where he was Chairman of the Audit Committee and Senior Independent Director.

Current directorships/business interests Non-ExecutiveDirector and Chairman of the Audit Committee of Centrica plc.

APPENDIX11Preliminary Results 2019/20 - April 2020

Plc Board

Dame Susan Rice

Senior Independent Director

Appointment to the Board:1 June 2013. Susan has been the Senior Independent Director since 6 July 2016.

Committee membership

Chair of the Remuneration Committee and a member of the Nomination Committee.

Skills and experience

Susan has extensive experience as a Non-Executive Director, as well as in retail banking, financial services, leadership and sustainability. Her career in retail banking is particularly relevant to the ownership of Sainsbury's Bank and Argos Financial Services.

Career experience

Susan has been a member of the Scottish First Minister's Council of Economic Advisors, a Managing Director of Lloyds Banking Group Scotland and Chief Executive, and then Chairman, of Lloyds TSB Scotland plc. She has also held a range of non-executive directorships, including at the Bank of England and SSE plc.

Current directorships/business interests

Chair of Scottish Water and Business Stream, Chair of the Banking Standards Board, Chair of the Scottish Fiscal Commission and Senior Independent Director of the North American Income Trust.

Jean Tomlin

Non-Executive Director

Appointment to the Board: 1 January 2013

Committee membership

Audit Committee, Corporate Responsibility and Sustainability Committee and Nomination Committee.

Skills and experience

Jean has extensive experience and breadth of skills in human resources and corporate responsibility, enabling her to challenge the Executive Directors constructively and monitor the delivery of the strategy within the risk and control framework set by the Board.

Career experience

Jean was formerly Director of HR, Workforce and Accreditation for The London Organising Committee of the Olympic and Paralympic Games, where she set the strategic direction to ensure the mobilisation of the combined 200,000-strong workforce including paid staff, volunteers and contractors. This represented the recruitment and mobilisation of the largest peacetime workforce and set the industry standard for volunteering with the highly acclaimed Games. She was previously Group HR Director at Marks and Spencer Group Plc, HR Director and founder member of Egg plc, and Sales & Operations Director of Prudential Direct. Jean is a Fellow of the Chartered Institute of Personnel and Development (FCIPD).

Current directorships/business interests Independent Board member of Capri Holdings Limited,Non-ExecutiveDirector of Holdingham Group Ltd and Chief Executive Officer of Chanzo Limited.

David Keens

Non-Executive Director

Appointment to the Board: 29 April 2015

Committee membership

Chair of the Audit Committee and a member of the Nomination Committee

Skills and experience

David has extensive retail experience and knowledge of consumer-facing businesses, together with core skills in finance.

Career experience

David was formerly Group Finance Director of NEXT plc from 1991 to 2015 and their Group Treasurer from 1986 to 1991. Previous management experience includes nine years in the UK and overseas operations of multinational food manufacturer Nabisco and, prior to that, seven years in the accountancy profession.

Current directorships/business interests Non-ExecutiveDirector, Senior Independent Director and Chair of the Audit Committee of Auto Trader Group plc.

APPENDIX12Preliminary Results 2019/20 - April 2020

Plc Board

Matt Brittin

Non-Executive Director

Appointment to the Board: 27 January 2011

Committee membership

Nomination Committee and Remuneration Committee.

Skills and experience

Matt has extensive experience of running a high profile, fast moving, innovative digital business and is able to provide first hand guidance to the Board on building and driving digital customer journeys across the business. This knowledge enables him to develop and monitor the delivery of the strategy within the risk and control framework set by the Board.

Career experience

Since 2015, Matt has been responsible for Google's business and operations in Europe, the Middle East and Africa; and he has served in leadership roles at Google since 2007. Prior to that, Matt spent much of his career in media and marketing, with particular interest in strategy, commercial development and sales performance. This included commercial and digital leadership roles in UK media.

Current directorships/business interests

Google's President - Europe, Middle East and Africa and Director of The Media Trust.

Brian Cassin

Non-Executive Director

Appointment to the Board: 1 April 2016

Committee membership

Audit Committee and Nomination Committee

Skills and experience

Brian brings present day experience of running a FTSE 30 group with knowledge of big data and analytics, both topics of key importance to Sainsbury's. As CEO of Experian plc, Brian brings with him strong leadership experience and a substantial background in operating within a regulated environment.

Career experience

Brian joined Experian plc as Chief Financial Officer in April 2012, a post he held until his appointment as Chief Executive Officer in July 2014. Prior to this, Brian spent his career in investment banking at Greenhill & Co, where he was Managing Director and Partner. Brian has also held various roles at Baring Brothers International and at the London Stock Exchange.

Current directorships/business interests

Chief Executive Officer of Experian plc

Jo Harlow

Non-Executive Director

Appointment to the Board: 11 September 2017

Committee membership

Chair of the Corporate Responsibility and Sustainability Committee and member of the Nomination Committee and Remuneration Committee.

Skills and experience

Jo brings a wealth of experience in consumer-facing businesses and in the telecoms and technology industries, both in the UK and internationally.

Career experience

Jo most recently held the position of Corporate Vice President of the Phones Business Unit at Microsoft Corporation. She was previously Executive Vice President of Smart Devices at Nokia Corporation, following a number of senior management roles at Nokia from 2003. Prior to that, she held marketing, sales and management roles at Reebok International Limited from 1992 to 2003 and at Procter & Gamble Company from 1984 to 1992.

Current directorships/business interests:

Jo currently serves as Non-Executive Director and Chair of the Remuneration Committee of InterContinental Hotels Group plc, Non-Executive Director and Chair of the Remuneration Committee of Halma plc, and a Member of the Supervisory Board of Ceconomy AG.

APPENDIX13Preliminary Results 2019/20 - April 2020

Plc Board

Simon Roberts

Chief Executive Officer from 1 June 2020

Appointment to the Board: 1 June 2020

Committee membership

Corporate Responsibility and Sustainability Committee.

Skills and experience

Simon joined Sainsbury's and the Operating Board in July 2017 as Retail & Operations Director responsible for Stores, Central Operations and Logistics. He brought a wide range of experience and leadership skills to the Board from previous executive and non-executive roles.

Career experience

Simon has over 30 years' experience leading major UK retail brands, having spent 15 years at M&S and 13 years at Boots. Prior to joining Sainsbury's, Simon was Executive Vice President of Walgreens Boots Alliance and President of Boots UK and Ireland. During his tenure, Simon led Boots UK to achieve growth in sales and transactions, increased retail gross margin and doubled sales online. Before Boots, Simon was at Marks and Spencer Group Plc, where he started his career in stores.

Current directorships/business interests

Non-Executive Chairman at the Institute of Customer Service.

Retirements in 2019/20	Life President
John Rogers retired from the Board on 31	Lord Sainsbury of
October 2019.	Preston Candover KG

APPENDIX14Preliminary Results 2019/20 - April 2020

Operating Board

Mike Coupe	Kevin O'Byrne	Simon Roberts	Tim Fallowfield OBE	Jim Brown
Chief Executive Officer	Chief Financial Officer	Chief Executive Officer	Company Secretary and	Chief Executive Officer,
		from 1 June 2020	Corporate Services Director	Sainsbury's Bank

Paul Mills-Hicks	Angie Risley	Phil Jordan	Clo Moriarty
Commercial Director	Group HR Director	Chief Information Officer	Chief Digital Officer

APPENDIX15Preliminary Results 2019/20 - April 2020

Operating Board

Mike Coupe

Chief Executive Officer

See Appendix page 11

Kevin O'Byrne

Chief Financial Officer

See Appendix page 11

Simon Roberts

Chief Executive Officer from 1 June 2020

See Appendix page 14

Tim Fallowfield OBE

Company Secretary and

Corporate Services Director

Date of appointment: September 2004

Skills and experience

Tim joined Sainsbury's in 2001 as Company Secretary, having previously held the position of Company Secretary and General Counsel at Exel plc, the global logistics company, now part of DHL. Tim is a qualified solicitor and began his career at the international law firm, Clifford Chance. He joined Sainsbury's Operating Board in September 2004 and, in addition to his role as Company Secretary, he is responsible for the Corporate Services Division comprising Legal Services, Data Governance and Information Security, Safety, Shareholder Services, Insurance and Central Security. He chairs the Group Safety Committee and the Data Governance Committee.

Tim is Chairman of the Disability Confident Business Leaders Group, which works with Government in shaping the disability employment agenda and in raising awareness of the benefits of employing disabled people. He was awarded an OBE for services to disability awareness in the 2020 New Year's Honours List.

Jim Brown

Chief Executive Officer, Sainsbury's Bank

Date of appointment: June 2019

Skills and experience

Jim joined Sainsbury's Bank in June 2019. He has held a number of senior international financial services roles, most recently for RBS in the UK as CEO of Williams and Glyn and, prior to that, as CEO of Ulster Bank in Northern Ireland and the Republic of Ireland. Before moving to Ireland, Jim was based in Hong Kong and was CEO Retail and Commercial Banking, Asia and the Middle East for RBS and ABN AMRO. He has also been a member of the RBS Group Management Committee, ABN AMRO Top Executive Group, ABN AMRO Global Consumer Leadership Team and the RBS/Bank of China Joint Steering Committee. Earlier in his career, he held a number of senior executive roles for Citibank in Asia, Australia and New Zealand. Jim has also held various board positions, including at Ulster Bank, Saudi Hollandi Bank, The Royal Bank of Scotland (China) Co. Ltd and RBS (Pakistan) Ltd. He is a past President of the Institute of Banking in Ireland. He is currently a Certified Bank Director.

Paul Mills-Hicks

Commercial Director

Date of appointment: May 2014

Skills and experience

Paul joined the Operating Board in May 2014 as Food Commercial Director, having spent over ten years at Sainsbury's. He was closely involved in the formation and execution of the 'Making Sainsbury's Great Again' strategy and has held a variety of roles in commercial, strategy and finance, most recently as Business Unit Director for Grocery. Prior to Sainsbury's, Paul was European Controller at Marks and Spencer Group Plc and a Director at UBS Warburg.

APPENDIX16Preliminary Results 2019/20 - April 2020

Operating Board

Angie Risley

Group HR Director

Date of appointment: January 2013

Skills and experience

Angie was appointed Group HR Director and member of the Operating Board with responsibility for human resources in January 2013. Before joining Sainsbury's, Angie was the Group HR Director for Lloyds Banking Group and an Executive Director of Whitbread PLC with responsibility for HR and Corporate Social Responsibility. Prior to her current role as Non-Executive Director and Chair of the Remuneration Committee at Smith & Nephew plc, Angie spent six years as Non-Executive Director and Chair of the Remuneration Committee of

Serco plc.

Phil Jordan

Chief Information Officer

Date of appointment: January 2018

Skills and experience

Phil joined the Board in January 2018 and has brought a fresh, global perspective on technology to the Operating Board, in addition to a wealth of experience in digital, data and business transformation. Prior to joining Sainsbury's, Phil had a long and successful track record in telecommunications. Most recently, he was Global Chief Information Officer at Telefonica, overseeing Digital Transformation and Information Technology and, prior to that, was Chief Information Officer for Vodafone UK/Ireland. Phil has worked as a Non- Executive Adviser on Technology in the investment and retail banking sector and is currently a Non-Executive Director, member of the Audit Committee and Chair of the Cyber-Security Committee of TalkTalk Telecom Group PLC.

Clodagh Moriarty

Chief Digital Officer

Date of appointment: June 2018

Skills and experience

Clodagh was appointed Chief Digital Officer in June 2018, when she also joined the Operating Board. Clodagh is responsible for our e-commerce channels, digital products and digital strategy, ensuring customers experience an integrated and seamless digital experience across Sainsbury's, Argos, Tu, Sainsbury's Bank and Nectar. In addition to being the Operating Board sponsor for Wellbeing, she is also a newly appointed member of the Sainsbury's Bank Board and sits on its Nomination and Remuneration Committees. Prior to this, Clodagh has been Director of Online, Head of Online Trading, Merchandising & Content and Category Manager for the Meal Solutions business. She joined Sainsbury's as Head of Strategy, following nine years at Bain & Company. Whilst there, she worked across the London, New York and Johannesburg offices in corporate, private equity and not-for-profit sectors across multiple industries.

APPENDIX17Preliminary Results 2019/20 - April 2020

Supplementary financial details

1. Weighted average number of shares	2. Dividend		3. Financial calendar
FY 2019/20: 2,207.6m (2,471.0m diluted)				Q1 trading statement	1 July 2020
	2019/20	2018/19
FY 2018/19: 2,197.6m (2,468.7m diluted)		(16 weeks to 29 June 2020)
Interim	3.3p	3.1p
	Interim results	5 November 2020
	Final	-	7.9p
	(28 weeks to 21 September 2020)
	Total	3.3p	11.0p

APPENDIX18Preliminary Results 2019/20 - April 2020

Contacts

James Collins	Susie Lynskey
Head of Investor Relations	Investor Relations Manager
Tel: + 44 (0) 20 7695 7112	Tel: + 44 (0) 20 7695 0889
[e-mail]	[e-mail]

Irene Galvan	Glyn Davies
Investor Relations Analyst	Investor Relations Assistant
Tel: + 44 (0) 20 7695 2762	Tel: + 44 (0) 20 7695 0259
[e-mail]	[e-mail]

www.j-sainsbury.co.uk J Sainsbury plc, 33 Holborn, London EC1N 2HT