J Sainsbury : Preliminary Results Announcement 2019-20 Factsheets

J Sainsbury plc

FY 19/20 Highlights

We employ over 172,000 colleagues who work hard every day to make our customers' lives easier and to provide them with great products, quality and service whenever and wherever it is convenient for them.

Food

Our strategic focus is to help our customers live well for less. Through the combination of our supermarket, convenience and groceries online offerings, we ensure that customers are able to access great value, high quality products in the way that suits them, when it suits them. We continue to invest in range, price, service and quality, both in our own label offer, but also working with a broad variety of exciting brands to differentiate our offer. We are using space innovatively in our larger supermarkets by working with selected concession partners to maximise our use of space and help make Sainsbury's an attractive retail destination.

General Merchandise & Clothing

We are one of the largest general merchandise and clothing retailers in the UK, offering a wide range of products across our Argos, Tu, Sainsbury's Home and Habitat brands, in stores and online. Since acquiring Argos in September 2016, we have rapidly integrated the business, realising significant synergies. The cutting- edge supply chain and fulfilment model of Argos means we are strongly positioned to serve our customers' whenever and wherever they want. Offering high street style at supermarket prices has made Tu clothing very popular with our customers. We are strongly positioned in womenswear and childrenswear.

Financial Services

Financial Services are an integral part of our business, representing another opportunity for the group to offer a full range of services to our customers. Sainsbury's Bank

• Argos Financial Services, together, offer accessible products such as credit cards, insurance, travel money, and personal loans that reward loyalty.

Headline figures

£586m2%

Underlying profit before tax

£28,424m0%

Underlying Retail sales

Group performance

£986m3%

Group underlying operating profit

£938m4%

Retail operating profit

£48m55%

Financial Services operating profit

3.3%

Retail underlying operating margin

Sales

(0.6)%

LfL sales increase inc VAT, ex fuel

1.3%

Convenience sales growth

7.6%

Groceries online sales growth

£255m26%

Profit before tax

19.8p4%

Underlying earnings per share

£611m£155m

Free cash flow

3.2xfrom 3.3x

Net debt/underlying EBITDA

£1,179m£343m

Net debt excluding lease liabilities

£6,947m£399m

Net debt

(0.4)%

Total retail sales growth inc VAT, ex fuel

Categories
0.4%	(2.9)%
Grocery sales growth	General
1.2%	Merchandise
sales growth
Clothing sales growth		£6.4bn
	General
	Merchandise
£19.5bn		£1.0bn
Grocery		Clothing

+200
New value
	brand
	products
	launched
15%	Invest
Argos Fast Track	£1bn
collection
growth	To become
	Net Zero
	by 2040
+4.5m
Customers
now using the
Nectar app
	Pay@Browse
	technology
	now available in
Smartshop	548
now available in

all	Argos stores
supermarkets

Group overview

as at 7 March 2020

		Over
		172,000
		Colleagues
		18%1
		Group sales
		now online
£31.8bn	1	£586m
	Underlying
Retail Sales		profit before tax

FY19/20	FY19/20

1. FY19/20, inc. VAT inc. fuel
2. Kantar 52 week rolling Total Till Roll market share to 23 February 2020

Investment case

Confident in the core		Integrated customer
	offer

One multi brand, multi channel business

Sustainable cost reduction, covering cost inflation and funding investment in our competitive offer

Strong cash generation supporting investment,

dividend and allowing deleverage

Financial flexibility and resilience

608

Supermarkets

	26m	15.5%
	per week
807	Customers		2
	Market
Locals		share
c.£2.8bn1		1869
Convenience
sales		Founded
c.£1.7bn1		6th
sales
Online

Biggest clothing retailer in the UK by volume

Our business strategy

Priorities

Be competitive		Distinctive		Personalised		Fast, friendly
on price		products and		and seamless		and convenient
		categories		physical and
				digital

306

Argos in

Sainsbury's

3rd

Most visited ecommerce website in the UK

Drive	Be a place	Net Zero
efficiency	where we all	by 2040
to reinvest	love to work

570

Argos stores

c.60%1

Sales start

online

Lending

Loans,

Credit cards

Argos

store cards

Commission

ATMs

SavingsInsurance

Travel money

Investor Relations contacts

James Collins

Head of Investor Relations

Tel: + 44 (0) 20 7695 7112

[e-mail]

Susie Lynskey

Investor Relations Manager

Tel: + 44 (0) 20 7695 0889

[e-mail]

Irene Galvan

Investor Relations Analyst

Tel: + 44 (0) 20 7695 2762

[e-mail]

Glyn Davies

Investor Relations Assistant

Tel: + 44 (0) 20 7695 0259

[e-mail]

@SainsburysNews

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