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Preliminary Results Announcement 2021-22 Presentation


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Speakers
Preliminary Results 2021 / 22Preliminary Results 2021 / 22
Simon Roberts - Chief Executive OfficerSimon Roberts - Chief Executive Officer
AgendaAgenda
Responding to a year of unprecedented changeResponding to a year of unprecedented change
Pace of change driving Food First momentumPace of change driving Food First momentum
We are delivering on our prioritiesWe are delivering on our priorities
8 key metrics8 key metrics
One year into our plan, we're making good progress on our metricsOne year into our plan, we're making good progress on our metrics
One year into our plan, we're making good progress on our metricsOne year into our plan, we're making good progress on our metrics
We’ve made significant investments in 21/22We’ve made significant investments in 21/22
We have momentum and are in a strong position to navigate 22/23We have momentum and are in a strong position to navigate 22/23
Kevin O'Byrne - Chief Financial OfficerKevin O'Byrne - Chief Financial Officer
Retail sales growth by categoryRetail sales growth by category
Group performance overviewGroup performance overview
Group performance overviewGroup performance overview
Underlying profit before taxUnderlying profit before tax
Retail underlying operating marginRetail underlying operating margin
Strategic cost reduction plan on trackStrategic cost reduction plan on track
Financial ServicesFinancial Services
Items excluded from underlying results Items excluded from underlying results
Net debt and Retail free cash flowNet debt and Retail free cash flow
Net debt movementNet debt movement
Significant Free Cash Flow generation over the last 5 yearsSignificant Free Cash Flow generation over the last 5 years
Updated capital allocation frameworkUpdated capital allocation framework
Summary and OutlookSummary and Outlook
Simon Roberts - Chief Executive OfficerSimon Roberts - Chief Executive Officer
We are delivering on our prioritiesWe are delivering on our priorities
Food FirstFood First
Volume market share:Volume market share:
Customer behaviour continues to normaliseCustomer behaviour continues to normalise
Digital participation significantly ahead of pre-pandemicDigital participation significantly ahead of pre-pandemic
Supermarket customer satisfaction ahead of competitorsSupermarket customer satisfaction ahead of competitors
Focus on key customer satisfaction metricsFocus on key customer satisfaction metrics
Value: our strongest relative price position in yearsValue: our strongest relative price position in years
Continuing to inflate behind the marketContinuing to inflate behind the market
Food Innovation: highest number of new products in a decadeFood Innovation: highest number of new products in a decade
Food Innovation: Helping Everyone Eat BetterFood Innovation: Helping Everyone Eat Better
Significant investment to improve our storesSignificant investment to improve our stores
Improvements across our food hallsImprovements across our food halls
Food Service transformation underwayFood Service transformation underway
Online: market share winnerOnline: market share winner
Online: productivity gainsOnline: productivity gains
Convenience recovery and On Demand growthConvenience recovery and On Demand growth
Brands that DeliverBrands that Deliver
Nectar: growing digital customer base, advancing personalisationNectar: growing digital customer base, advancing personalisation
Nectar360 Profit Growth: strong performance across servicesNectar360 Profit Growth: strong performance across services
General Merchandise and Clothing: structural profit improvementGeneral Merchandise and Clothing: structural profit improvement
Strategic choices on promotions and focus categoriesStrategic choices on promotions and focus categories
Encouraging Argos trajectoryEncouraging Argos trajectory
Clothing: a stronger, more profitable businessClothing: a stronger, more profitable business
Financial ServicesFinancial Services
Strong Financial Services platformStrong Financial Services platform
Save to InvestSave to Invest
Cost reductions creating headroom to investCost reductions creating headroom to invest
Key Cost Saving ProgrammesKey Cost Saving Programmes
Plan for BetterPlan for Better
Plan for Better: bold commitments to drive positive changePlan for Better: bold commitments to drive positive change
Plan for Better: progress against our priority pillarsPlan for Better: progress against our priority pillars
Plan for Better: deforestation free supply chains by 2025 Plan for Better: deforestation free supply chains by 2025
Moving at pace to change our businessMoving at pace to change our business
Delivering for shareholdersDelivering for shareholders
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Preliminary Results 2021 / 22
Preliminary Results 2021 / 22
Simon Roberts - Chief Executive Officer
Simon Roberts - Chief Executive Officer
Agenda
Agenda
Responding to a year of unprecedented change
Responding to a year of unprecedented change
Pace of change driving Food First momentum
Pace of change driving Food First momentum
We are delivering on our priorities
We are delivering on our priorities
8 key metrics
8 key metrics
One year into our plan, we're making good progress on our metrics
One year into our plan, we're making good progress on our metrics
One year into our plan, we're making good progress on our metrics
One year into our plan, we're making good progress on our metrics
We’ve made significant investments in 21/22
We’ve made significant investments in 21/22
We have momentum and are in a strong position to navigate 22/23
We have momentum and are in a strong position to navigate 22/23
Kevin O'Byrne - Chief Financial Officer
Kevin O'Byrne - Chief Financial Officer
Retail sales growth by category
Retail sales growth by category
Group performance overview
Group performance overview
Group performance overview
Group performance overview
Underlying profit before tax
Underlying profit before tax
Retail underlying operating margin
Retail underlying operating margin
Strategic cost reduction plan on track
Strategic cost reduction plan on track
Financial Services
Financial Services
Items excluded from underlying results
Items excluded from underlying results
Net debt and Retail free cash flow
Net debt and Retail free cash flow
Net debt movement
Net debt movement
Significant Free Cash Flow generation over the last 5 years
Significant Free Cash Flow generation over the last 5 years
Updated capital allocation framework
Updated capital allocation framework
Summary and Outlook
Summary and Outlook
Simon Roberts - Chief Executive Officer
Simon Roberts - Chief Executive Officer
We are delivering on our priorities
We are delivering on our priorities
Food First
Food First
Volume market share:
Volume market share:
Customer behaviour continues to normalise
Customer behaviour continues to normalise
Digital participation significantly ahead of pre-pandemic
Digital participation significantly ahead of pre-pandemic
Supermarket customer satisfaction ahead of competitors
Supermarket customer satisfaction ahead of competitors
Focus on key customer satisfaction metrics
Focus on key customer satisfaction metrics
Value: our strongest relative price position in years
Value: our strongest relative price position in years
Continuing to inflate behind the market
Continuing to inflate behind the market
Food Innovation: highest number of new products in a decade
Food Innovation: highest number of new products in a decade
Food Innovation: Helping Everyone Eat Better
Food Innovation: Helping Everyone Eat Better
Significant investment to improve our stores
Significant investment to improve our stores
Improvements across our food halls
Improvements across our food halls
Food Service transformation underway
Food Service transformation underway
Online: market share winner
Online: market share winner
Online: productivity gains
Online: productivity gains
Convenience recovery and On Demand growth
Convenience recovery and On Demand growth
Brands that Deliver
Brands that Deliver
Nectar: growing digital customer base, advancing personalisation
Nectar: growing digital customer base, advancing personalisation
Nectar360 Profit Growth: strong performance across services
Nectar360 Profit Growth: strong performance across services
General Merchandise and Clothing: structural profit improvement
General Merchandise and Clothing: structural profit improvement
Strategic choices on promotions and focus categories
Strategic choices on promotions and focus categories
Encouraging Argos trajectory
Encouraging Argos trajectory
Clothing: a stronger, more profitable business
Clothing: a stronger, more profitable business
Financial Services
Financial Services
Strong Financial Services platform
Strong Financial Services platform
Save to Invest
Save to Invest
Cost reductions creating headroom to invest
Cost reductions creating headroom to invest
Key Cost Saving Programmes
Key Cost Saving Programmes
Plan for Better
Plan for Better
Plan for Better: bold commitments to drive positive change
Plan for Better: bold commitments to drive positive change
Plan for Better: progress against our priority pillars
Plan for Better: progress against our priority pillars
Plan for Better: deforestation free supply chains by 2025
Plan for Better: deforestation free supply chains by 2025
Moving at pace to change our business
Moving at pace to change our business
Delivering for shareholders
Delivering for shareholders
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