Presentation tesco's investors financial highlights


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Presentation tesco's investors financial highlights

  1. 1. Financial Highlights27 February 2012
  2. 2. David ReidNon–Executive Chairman
  3. 3. Sir Richard BroadbentChairman from 30th November
  4. 4. Philip ClarkeGroup Chief Executive
  5. 5. Steering wheel
  6. 6. Steering wheel
  7. 7. CustomersClubcard is Tesco’s uniquecustomer loyalty programme.In 2012 it was more popularthan ever, with over 15.4million customers.This is our way of ensuring thatour customer base continues todemonstrate considerably higherlevels of loyalty than ourcompetitors.
  8. 8. Customers 14% Based on a survey regarding retailer’s customers who do more that 50% shopping 16,2% being loyal to a retailer 19,2% 30,1%
  9. 9. Steering wheel
  10. 10. Community Donation of Charity for emergency Alzheimer’s supplies to 2000 Society & people, £20 Dementia financial aid and Community 3000 relief packs Roadshow of goods Tesco Charity Tesco Charity Trust & British Red Trust & British Red Cross donates Cross donates £50,000 after the £25,000 to Turkish earthquake in Red Crescent for Japan to Japanese the survivors of Red Cross the earthquake
  11. 11. Steering wheel
  12. 12. Operations Self-service checkouts and the scan-as-you-shop devices improved the in store services.
  13. 13. Steering wheel
  14. 14. People
  15. 15. People Tesco is Britain’s largest private sector employer set to recruit 440 graduates in the next 12 months. Next year Tesco is aiming to increase the number of graduates by 30%. 3.25 million unemployed people in UK with 3.75% Biggest ever “Shares forecast by the end of the in Success” payout year. The Sunday times with over £225,000 “Top 100 employers in staff across the UK Britain” named Tesco top receiving a share of a 5 while Waitrose drops £110m. down from the league table.
  16. 16. Steering wheel
  17. 17. Financial Headlines• UK market situation• Tesco International• Financial Highlights• Tesco steering wheel
  18. 18. UK market • Slow • Affected recover Non-food within retail Sales stocks World-wide Stock Emergency Market Tax Crash UK New Competition Planning Commission Regulations • Stopped further development
  19. 19. Tesco Bank 2010 – Tesco aimed to emerge into international banking Impact of Windfall Tax 2011 - slowed down the final stage of Tesco Bank system of immigration
  20. 20. Tesco BankDespite the negative economicmarket situation and the bankfailures in Belgium, Greece,Italy and France Tesco Bankincrease the sales by 8.8% to£1bn.
  21. 21. dotcomTesco Direct offered access to savings onthousands of nearly new and used cars atcustomers with 2000 Tesco Clubcard points.The car business is worth £24 billioneach year in UK so Tesco decided to enterthe market. December was a rough month as Tesco Direct was attacked by hackers. This affected our online sales that were expected to increase by 20%.
  22. 22. Telecoms •Tesco mobile in now operating in UK, Ireland and Slovakia •21 September 2011 in cooperation with Vodafone we launched a new mobile service in Hungary. • 16 December 2011 Tesco launched “MyEdge” including Android Google Crome operating system • 27 February 2012 recoded sales of £3 million
  23. 23. Group performance 2011-2012 Group sales £ 65.6 bn Group trading profit £10.32 bn Underlying profit before tax £3.5 bn Dividends 12.63 p
  24. 24. Growth vs competitors Tesco40 Asda35 J Sainsbury30 Wm Morrison252015105 06/07 08/09 10/11 12/13 Despite the difficult economic market and the decrease of sales, Tesco is still the leading retailing company in the UK
  25. 25. Asia Tesco International• 28 February - further develop of shopping malls in China - Project value: £170m• 07 June - new training Academy - Project capacity: 24.000 staff per year• 20 November - the planning approvals for Tesco Mall in China have been halted due to a sudden change of the Communist PartyDespite the difficult market situation our businessin Asia in still strong and looks for furtherdevelopment into the next year
  26. 26. Winning locallyAsia Applying our skills globally 33,5% 66,6% Sales £11bn Profit £3.7bn
  27. 27. Europe Tesco International• November 2011 – withdrawal of Italy from the EU• January 2012 – withdrawal of Greece from the EU• February 2012 – Bank failures in Belgium,Greece, Italy and France.• This situation lead to the collapse of consumerconfidence
  28. 28. Winning locallyEurope Applying our skills globallyRegardless of the difficult economic situation Tescomanages to maintain a high level of performancecompared with the other European retailers anddid not have to withdraw from any market. 32,9% 67,1 % Sales £9.4bn Profit £3.1bn
  29. 29. USA Tesco International• California declared bankruptcy inDecember• Public sector unemployment wasaffected• Customer demand decreased in ourFresh and Easy stores• We decided to withdraw from themarket in order to maintain ourcompany strong and growing
  30. 30. Winning locallyUSA Applying our skills globallyDespite the difficult market situation that we had toface in the USA, Tesco managed to have a positiveeconomic balance as before the withdrawal we reach agrowth of 14.5% to £5,75 billion compared with £5,02billion from 2011. 17,9% 82,1% Sales £5.75bn Profit £1,03bn
  31. 31. The profit of our group The withdraw from the USA market did not impacted our trading profit as it was representing only 1%.
  32. 32. Group tax 2011 - 24.3% Fall in the UK corporation tax rate 2012 – 23.0% Deficit reductions plan of the new Coalition Government 2013 – 24.0%
  33. 33. Group capital expenditure £0.3bn £0.5bn £1.0bn UK Bank International investments investments investments2011/2012 £2.9 billion Between 5% and 5.5% of Group sales is our 2013 target of next year capital expenditure.
  34. 34. Share price and dividendsWorld-wide Market crash dramatically influenced the recoveryof the food and drug retailing sector.Facing this economically situation the Board had approved adividend of 12,63p per share.However, considering the current market conditions we arestill 0.5% above the FTSE 100.The satisfaction of our 14,46pshareholders is of extreme 13,05p 11,96p 12,63pimportance to us, so we aredoing everything that is in ourpower to maintain thecontinuity of our paymentstowards the shareholders,while our competitors had tostop the dividend payments. 2009 2010 2011 2012
  35. 35. Valuable and competitive• 2nd year in a row Tesco was named top retailer in the world for itsefforts in tackling climate chance according to Carbon Disclosure Project• Multi-Channel Retailer of the year in “Oracle World Retail Awards” 2011• “Best Company Award” at the annual BIC (Business in the Community)
  36. 36. Summary• We increased our customer loyalty• We increased our profits in Banking sector and expecting furtherdevelopment in the next year• We developed in telecommunications sector• We are the leading retailing company on the UK market• Investments in Asia with encouraging performance despite the politicalsituation• Dividends above the FTSE despite the negative economic market
  37. 37. Q&A
  38. 38. Financial Highlights27 February 2012