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Annual General Meeting 10 July 2013

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Page 1: AGM slides - post JK reviewV4 PRINT [Read-Only]

Annual General Meeting10 July 2013

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David TylerChairman

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Justin KingChief Executive

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2012/13Operating review

Delivered good sales and profit growth, outperforming the market

Quality own-brand offer remains a key point of difference

Nectar, coupon-at-till and Brand Match key to success

Online and convenience businesses continue to grow strongly

Acquisition of Sainsbury’s Bank allows continued development of complementary channels

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bps

Group performanceHighlights

Underlying results

Sales (inc VAT)

Sales (inc VAT, ex fuel)

Operating profit

Net finance costs

Share of JV profits

Profit before tax

Tax rate

Basic EPS(1)

Full year dividend per share

Statutory results

Items excluded from underlying results

Profit before tax

2012/13£m

2011/12£m

4.6 4.3 5.1

(1.8)18.8 6.2 245 9.3 3.7

(63.2)(1.4)

Change%

%pp

%pp

25,632

829 (111)

38 756

23.7 30.7 16.7

32 788

24,511

789 (109)

32 712

26.1 28.1 16.1

87 799

Underlying basic earnings per share(1)

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2012/13Strong trading performance

Significant market beating sales performance in a challenging market- total sales up 4.3%, like-for-like sales up 1.8%(1)

Underlying operating profit up 5.1%, slightly ahead of sales growth

Kantar Total Till roll 12 w/e

(1)

(2)Sales including VAT and excluding fuel

MorrisonsSainsbury’s

Tesco

Total GroceryAsda

Sainsbury’s sales growth is strong in a tough marketTotal sales growth (2)

Q1 Q2 Q3 Q4 Q12012/13

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Market backdrop A year like no other

Queen's Diamond Jubilee, Olympics and Paralympics

High levels of customer awareness and colleague engagement

Legacy programmes launched- Active Kids for All- Sainsbury’s Anniversary Games

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Live Well For LessIncreasing the number of own-brand customers

Own-brand sales have grown faster than branded sales- Total own-brand sales up nearly 5% year-on-year- Growth in all three tiers

Our values are a long term, strategic point of difference- Invested in our supply chain and sourcing credentials- DNA testing for over 10 years

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Live Well For Less Unique combination of Nectar, CAT and Brand Match

Brand Match is helping to close the price perception gap- Around 350m coupons issued to date- ‘Cheaper than’ coupons issued over 50% of the time

Unique combination of Nectar and coupon-at-till (CAT)- Issue relevant and personalised promotions- Incentivises customers to shop different channels- Reward loyal customers – over £110m

redeemed in-store last Christmas

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Health: Trained pharmacists in over 270 stores as Healthy Eating Advisors

Sourcing: RSPCA ‘Retailer of the Year’ and continue to be the largest retailer of Fairtrade, MSC fish and Freedom Foods products

Environment: 82,000 solar panels on 189 stores –largest multi-site solar array in Europe

Our values make us differentContinue to work towards our 20x20 commitments

Community: Presented a record cheque for £10.5m to Comic Relief

Great place to work: Created 400 apprenticeship places

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Performance Brand performance

Winner of Supermarket of the Year for 5 of the last 7 years

Winner of Convenience Chain of the Year for the last 3 years

Winner of Online Retailer of the Year

Winner of Employer of the Year

Business In The Community – Platinum Big Tick 2013

Winner of Grocer 33 Customer Service & Availability Awards

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A long-term vision for growth

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Sources: Ipsos-MORI (from Jan 2009 to P1 2012/13) and Brand Face (from P1 2012/13 to date) unweighted rolling 8 week data.

Base sizes per rolling period : Sainsbury’s (c.800), Tesco (c.400), Asda (c.250), Morrisons (c.200).

Great FoodContinued leadership in quality food

MorrisonsSainsbury’s

TescoAsda

2009/10 2010/11 2011/12 2012/13

8.4

8.2

7.8

7.7

Quality of products (scale of 1-10)

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Completed our re-launch of Äó=p~áåëÄìêóÛë- Over 6,500 lines, many new or improved- Winner of Own-Label Range of the Year

Fresh counters in over 500 stores- Over 20,000 colleagues trained at

7 food colleges

Continue to invest in British food- Biggest volume retailer of British apples

and pears

Great FoodContinual investment in own-brand

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Compelling General Merchandise and ClothingStrong contribution to overall performance

GM and Clothing has grown at over twice the rate of food over the year

Strong clothing sales growth has continued- 7th largest UK clothing retailer by volume- Launched a further 4 dçâ=Ñçê=qì=ranges

Achieved the milestone of £1bn annual GM sales- 7th largest UK retailer for homeware by value

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Convenience sales of over £1.5bn and growing at 17% year-on-year

Opened 87 stores during the year and a second dedicated convenience depot at Thameside

Groceries online business of nearly £1bn

Improved operational efficiency, customer service and availability over the year

Complementary Channels and ServicesConvenience and online businesses growing strongly

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Sainsbury’s BankA year of growth

Sainsbury’s brand and in-store marketing reduce costs of acquiring new customers

Ability to leverage Nectar data to reward and incentivise customers

Strong track record of profit growth

8% increase in active accounts over the year to 1.5m

Strengthened management team

Bank profit before tax(1) (£m)

100% Sainsbury’s Bank PBT adjusted to J Sainsbury plc year end(1)

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Sainsbury’s BankAcquisition of Lloyds Banking Group’s 50% share agreed

Clear benefits for customers and shareholders

Bank customers are more loyal and spend more in-store

Expected to complete January 2014

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Mobile Äó Sainsbury’s: JV announced with Vodafone

Sainsbury’s Pharmacies: Over 270 in-store pharmacies and 3 hospital pharmacies

Sainsbury’s Energy: 83% increase in customers over the year

Insight 2 Communication: JV with Aimia that allows suppliers todeliver targeted offers to our customers

Launched a number of digital businesses:- Rovi- Sainsbury’s Entertainment- eBooks Äó Sainsbury’s

Developing new businessExpanding our brand into new areas

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Growing Space and Creating Property ValueA unique space growth opportunity

Convenience

Increasing the proportion of convenience space, reflecting the change in consumer shopping habits

Highly accretive investments, generating strong returns

Extensions

Increasing the proportion of customers with access to a full non-food offer – from 11% to 33% over the last 5 years

Supermarkets

Opening stores in select locations where Sainsbury’s does not currently have a presence – there are 35% of postcodes where Sainsbury’s market share <5%

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A long-term vision for growth

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Summary

Good sales and profit performance

Continued strength in own-brand

Competitive advantage through Nectar, coupon-at-till and Brand Match

Strong growth in our multi-channel businesses

Opportunities to further develop Sainsbury’s Bank

Consistent delivery of our long-term vision for growth

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Annual General Meeting10 July 2013

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Q&A

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Annual General Meeting10 July 2013

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Resolution 1

To receive the Directors’ and Auditors’ reports and accounts

Number of shares

For 1,341,100,920 99.98%Against 256,360 0.02%Withheld 99,103

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Resolution 2

To approve the Directors’ Remuneration Report

Number of shares

For 1,291,993,930 96.91%Against 41,143,555 3.09%Withheld 8,319,611

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Resolution 3

To declare the final dividend

Number of shares

For 1,341,348,001 100.00%Against 34,699 0.00%Withheld 62,705

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Resolution 4

To elect Susan Rice as a Director

Number of shares

For 1,339,563,302 99.88%Against 1,670,853 0.12%Withheld 230,605

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Resolution 5

To elect Jean Tomlin as a Director

Number of shares

For 1,339,921,407 99.90%Against 1,359,221 0.10%Withheld 210,940

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Resolution 6

To re-elect Matt Brittin as a Director

Number of shares

For 1,339,874,896 99.89%Against 1,415,787 0.11%Withheld 200,077

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Resolution 7

To re-elect Mike Coupe as a Director

Number of shares

For 1,331,531,444 99.59%Against 5,415,216 0.41%Withheld 4,521,784

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Resolution 8

To re-elect Mary Harris as a Director

Number of shares

For 1,339,851,951 99.89%Against 1,451,329 0.11%Withheld 182,563

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Resolution 9

To re-elect Gary Hughes as a Director

Number of shares

For 1,339,940,851 99.90%Against 1,359,658 0.10%Withheld 191,315

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Resolution 10

To re-elect Justin King as a Director

Number of shares

For 1,331,596,101 99.60%Against 5,370,307 0.40%Withheld 4,518,542

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Resolution 11

To re-elect John McAdam as a Director

Number of shares

For 1,326,614,200 99.41%Against 7,824,842 0.59%Withheld 7,048,384

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Resolution 12

To re-elect John Rogers as a Director

Number of shares

For 1,339,407,583 99.86%Against 1,885,721 0.14%Withheld 195,195

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Resolution 13

To re-elect David Tyler as a Director

Number of shares

For 1,327,249,081 99.73%Against 3,654,766 0.27%Withheld 10,587,076

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Resolution 14

To re-appoint PricewaterhouseCoopers LLP as auditors

Number of shares

For 1,337,656,973 99.73%Against 3,670,758 0.27%Withheld 150,261

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Resolution 15

To authorise the Audit Committee to agree the Auditors’ remuneration

Number of shares

For 1,339,801,931 99.89%Against 1,508,922 0.11%Withheld 174,514

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Resolution 16

To authorise the Directors to allot shares

Number of shares

For 1,303,645,304 97.19%Against 37,626,431 2.81%Withheld 219,762

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Resolution 17

To disapply statutory pre-emptive rights (Special Resolution)

Number of shares

For 1,337,161,068 99.71%Against 3,852,610 0.29%Withheld 476,959

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Resolution 18

To authorise J Sainsbury plc to make ‘political donations’ and incur ‘political expenditure’

Number of shares

For 1,332,632,596 99.40%Against 7,993,132 0.60%Withheld 831,859

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Resolution 19

To approve purchase of own shares (Special Resolution)

Number of shares

For 1,337,515,287 99.72%Against 3,702,605 0.28%Withheld 270,356

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Resolution 20

To authorise the calling of general meetings on not less than 14 days’ notice (Special Resolution)

Number of shares

For 1,258,376,109 93.82%Against 82,858,259 6.18%Withheld 257,231

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Annual General Meeting10 July 2013