Tesco : View the Debt Investor Presentation

Tesco Interim Results 2022/23.

Debt Investor Call.

Imran Nawaz, Chief Financial Officer

Lynda Heywood, Group Treasurer

5 October 2022

Six months of progress.

Supporting customers with a		Rewarding loyalty through		Creating value for all
relentless focus on value		Clubcard		stakeholders

Leading combination of Aldi Price Match, Low Everyday Prices & Clubcard Prices

Most competitive price index vs limited- range discounters to date

Brand NPS now ranked No.1 of full-line grocers

Focus on quality, with perception up +208bps YoY

Over 20 million households now actively using Clubcard (up 3.3 million YoY)

Clubcard penetration increased in UK, ROI

• all three Central European markets Clubcard satisfaction up +505bps

Extended in-app personalised rewards to over two million customers

Announced biggest single year investment in colleague pay in a decade at start of H1

Further increase for UK store colleagues announced today - to £10.30/hr

Daily donations to support unprecedented foodbank demand - over 20m meals in H1

Returned £450m to shareholders via ongoing buyback; £750m since Oct 2021

1

1. Full-line grocers refers to Tesco, Sainsbury's, Asda & Morrisons; Limited-range discounters refers to Aldi & Lidl.

Group performance.

Sales1

+3.5%

Like-for-like +3.2%

Net debt

down £0.5bn

Group profit2		Retail free cash flow
£1,315m		£1,283m
(9.8)% vs. last year		£(0.3)bn vs. last year

EPSDividend

10.67p 3.85p

(4.9)% vs. last year

+20.3% vs. last year

1. Sales exclude VAT and fuel. Sales change shown at constant rates.	2

2. Operating profit before adjusting items. Change shown at constant rates.

Segmental performance.

	Sales1	Change at	LFL
	constant rates
UK & ROI	£25,630m	2.6%	2.7%
Central Europe	£2,008m	9.5%	10.4%
Total Retail	£27,638m	3.1%	3.2%
Bank	£540m	24.6%	n/a
Group	£28,178m	3.5%	3.2%

Adjusted	Change at	Margin
operating profit2	constant rates
£1,169m	(11.5)%	3.9%
£79m	19.1%	3.7%
£1,248m	(10.0)%	3.9%
£67m	(6.9)%	12.4%
£1,315m	(9.8)%	4.1%

1.	Sales exclude VAT and fuel. Sales change shown at constant rates.	3
2.	Operating profit before adjusting items.

UK sales.
UK LFL	(1.5)%	+2.8%	+0.7%
		Q1	Q2	H1
Like-for-like by channel

Large	Online		Convenience1
+1.4%	(11.3)%		xxx
+6.5%
	3.6%		6.2%	6.7%

			(7.7)%
(0.7)%	Q2	(14.5)%
Q2	Q1	Q2
Q1	Q1

Q1 reflects annualisation of	Seeing some normalisation as	Strong footfall recovery in city
COVID-19 benefit	customers switch back to stores	and town centre stores

4

1. Convenience includes One stop.