Tesco : View the Debt investor presentation

Debt Investor Update 2021/22.

Imran Nawaz, Chief Financial Officer

Lynda Heywood, Group Treasurer

13 April 2022

An extraordinary year.

Prioritised safety and well-being throughoutSupported absent & isolating colleaguesOnline capacity maintained at 1.2m orders per week; app users +71%

Donated 53m meals via food redistribution; 3m through 'Buy One to Help a Child'

Leveraged supplier partnerships & supply chain capability

960 HGV drivers added via recruitment, conversion courses and apprenticeshipsSignificantly increased rail freight, including new UK refrigerated service

Maintained industry-leading availability

1.

YouGov Quality perception on a 12 week rolling basis to 27 February 2022. 'Market' consists of Sainsbury's, Morrisons, Asda, Aldi, Lidl, Waitrose, M&S, Co-op & Iceland.

Group performance.

Sales1	Group profit2	Retail free cash flow3
£2,825m	£2,277m
+3.0%
+10.2% vs. 19/20	+58.9% vs. last year	+£0.9bn vs. last year
Net debt	EPS4	Dividend
21.86p	10.90p
down £1.4bn
+88.8% vs. last year	+19.1% vs. last year

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

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

• 3. Our Retail free cash flow APM is consistent with the amendment made in the Interim results, to provide a more consistent and predictable view of free cash flow generated by the core retail operation.

• 4. The share base used in Adjusted diluted EPS in the prior year is adjusted to capture the full impact of the share consolidation which followed the sale of our businesses in Thailand and Malaysia, as if it took

• place at the start of the 2020/21 financial year. As such, Adjusted diluted EPS (adjusted for share consolidation) is presented on a basis other than in accordance with IAS 33.

Segmental performance.

2.6%

UK & ROI

£49,984m

2.2%

8.8%

£2,481m

35.4% 4.4%Central Europe

£3,862m

3.7%

2.9%

2.5%

£168m

41.1% 4.2%

25.4%

35.8% 4.4%

Bank

£922m

-

-

£176m

n/m 19.1%

• 1. 2-year LFL sales growth is calculated by comparing current year sales to sales in 2019/20 and includes sales from those stores which were trading in both years.

• 2. Operating profit before adjusting items.