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Interim Results 2015/16Interim Results 2015/16
David Tyler ChairmanDavid Tyler Chairman
John Rogers Chief Financial OfficerJohn Rogers Chief Financial Officer
Financial highlightsFinancial highlights
OverviewOverview
Retail Core business impacted by food deflation but other areas continue to growRetail Core business impacted by food deflation but other areas continue to grow
Retail Impact of £150m price investment and deflation reduce marginsRetail Impact of £150m price investment and deflation reduce margins
Retail H1 profitability impacted by £80m of the £150m price investmentRetail H1 profitability impacted by £80m of the £150m price investment
Sainsbury’s Bank Good trading performanceSainsbury’s Bank Good trading performance
Sainsbury’s Bank  Complexity of migration has led to a delaySainsbury’s Bank Complexity of migration has led to a delay
Cost savings  Full year savings expected to be £25m ahead of our Prelims guidanceCost savings Full year savings expected to be £25m ahead of our Prelims guidance
Cost savings  Efficiencies delivered whilst maintaining excellent customer serviceCost savings Efficiencies delivered whilst maintaining excellent customer service
Items excluded from underlying results Profits realised on mixed-use development schemesItems excluded from underlying results Profits realised on mixed-use development schemes
Underlying finance costs   Includes perpetual securities couponsUnderlying finance costs Includes perpetual securities coupons
Cash flow and working capital Good retail working capital performanceCash flow and working capital Good retail working capital performance
Retail capital expenditure Year-on-year reduction in line with guidanceRetail capital expenditure Year-on-year reduction in line with guidance
Balance sheet   We have improved our liquidity position and increased our financial flexibilityBalance sheet We have improved our liquidity position and increased our financial flexibility
Balance sheet   Balance sheet continues to be robust Balance sheet Balance sheet continues to be robust
Balance sheet   Balance sheet metrics remain stable despite decline in profitabilityBalance sheet Balance sheet metrics remain stable despite decline in profitability
SummarySummary
Mike Coupe Chief ExecutiveMike Coupe Chief Executive
Market contextMarket context
Volumes are improving but food deflation continues to impact the marketVolumes are improving but food deflation continues to impact the market
Trading environment will remain challengingTrading environment will remain challenging
Building a better Sainsbury'sBuilding a better Sainsbury's
Great products and services at fair pricesGreat products and services at fair prices
Great products and services at fair pricesGreat products and services at fair prices
Great products and services at fair pricesGreat products and services at fair prices
Great products and services at fair pricesGreat products and services at fair prices
Great products and services at fair pricesGreat products and services at fair prices
Great products and services at fair pricesGreat products and services at fair prices
Great products and services at fair pricesGreat products and services at fair prices
Great products and services at fair pricesGreat products and services at fair prices
There for our customersThere for our customers
There for our customersThere for our customers
There for our customersThere for our customers
There for our customersThere for our customers
There for our customersThere for our customers
Colleagues making the differenceColleagues making the difference
Colleagues making the differenceColleagues making the difference
We know our customers better than anyone elseWe know our customers better than anyone else
Our values make us differentOur values make us different
SummarySummary
Q & AQ & A
Q & AQ & A
Q & AQ & A
Q & AQ & A
Q & AQ & A
Q & AQ & A
Q & AQ & A
Q & AQ & A
Q & AQ & A
Interim Results 2015/16
Interim Results 2015/16
David Tyler Chairman
David Tyler Chairman
John Rogers Chief Financial Officer
John Rogers Chief Financial Officer
Financial highlights
Financial highlights
Overview
Overview
Retail Core business impacted by food deflation but other areas continue to grow
Retail Core business impacted by food deflation but other areas continue to grow
Retail Impact of £150m price investment and deflation reduce margins
Retail Impact of £150m price investment and deflation reduce margins
Retail H1 profitability impacted by £80m of the £150m price investment
Retail H1 profitability impacted by £80m of the £150m price investment
Sainsbury’s Bank Good trading performance
Sainsbury’s Bank Good trading performance
Sainsbury’s Bank Complexity of migration has led to a delay
Sainsbury’s Bank  Complexity of migration has led to a delay
Cost savings Full year savings expected to be £25m ahead of our Prelims guidance
Cost savings  Full year savings expected to be £25m ahead of our Prelims guidance
Cost savings Efficiencies delivered whilst maintaining excellent customer service
Cost savings  Efficiencies delivered whilst maintaining excellent customer service
Items excluded from underlying results Profits realised on mixed-use development schemes
Items excluded from underlying results Profits realised on mixed-use development schemes
Underlying finance costs Includes perpetual securities coupons
Underlying finance costs   Includes perpetual securities coupons
Cash flow and working capital Good retail working capital performance
Cash flow and working capital Good retail working capital performance
Retail capital expenditure Year-on-year reduction in line with guidance
Retail capital expenditure Year-on-year reduction in line with guidance
Balance sheet We have improved our liquidity position and increased our financial flexibility
Balance sheet   We have improved our liquidity position and increased our financial flexibility
Balance sheet Balance sheet continues to be robust
Balance sheet   Balance sheet continues to be robust
Balance sheet Balance sheet metrics remain stable despite decline in profitability
Balance sheet   Balance sheet metrics remain stable despite decline in profitability
Summary
Summary
Mike Coupe Chief Executive
Mike Coupe Chief Executive
Market context
Market context
Volumes are improving but food deflation continues to impact the market
Volumes are improving but food deflation continues to impact the market
Trading environment will remain challenging
Trading environment will remain challenging
Building a better Sainsbury's
Building a better Sainsbury's
Great products and services at fair prices
Great products and services at fair prices
Great products and services at fair prices
Great products and services at fair prices
Great products and services at fair prices
Great products and services at fair prices
Great products and services at fair prices
Great products and services at fair prices
Great products and services at fair prices
Great products and services at fair prices
Great products and services at fair prices
Great products and services at fair prices
Great products and services at fair prices
Great products and services at fair prices
Great products and services at fair prices
Great products and services at fair prices
There for our customers
There for our customers
There for our customers
There for our customers
There for our customers
There for our customers
There for our customers
There for our customers
There for our customers
There for our customers
Colleagues making the difference
Colleagues making the difference
Colleagues making the difference
Colleagues making the difference
We know our customers better than anyone else
We know our customers better than anyone else
Our values make us different
Our values make us different
Summary
Summary
Q & A
Q & A
Q & A
Q & A
Q & A
Q & A
Q & A
Q & A
Q & A
Q & A
Q & A
Q & A
Q & A
Q & A
Q & A
Q & A
Q & A
Q & A
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