TERRY LEAHYTERRY LEAHYChief ExecutiveChief Executive

• Fastest organic growth rate

• Strong results

• Progressing with our clear strategy

• Fastest organic growth rate

• Strong results

• Progressing with our clear strategy

HIGHLIGHTSHIGHLIGHTS

• Strong UK core business

• Non Food

• Retailing services

• International growth

• Strong UK core business

• Non Food

• Retailing services

• International growth

FOUR PART STRATEGYFOUR PART STRATEGY

STRONG UK CORE BUSINESSSTRONG UK CORE BUSINESS

00/0100/0197/9897/98 98/9998/99 99/0099/00 01/0201/02

369369 377377

447447

501501

408408

UK Operating Profit (£m)UK Operating Profit (£m)Up 12.1%Up 12.1%

NON FOODNON FOOD

RETAILING SERVICESRETAILING SERVICES

INTERNATIONAL GROWTHINTERNATIONAL GROWTH

TESCO LEADS ON VALUETESCO LEADS ON VALUE

TESCO LEADS ON VALUETESCO LEADS ON VALUE

8585

9090

9595

100100

97/9897/98 98/9998/99 99/0099/00 00/0100/0196/9796/97 01/0201/02

12.5%12.5%

UK SALESUK SALES

Compound Volume GrowthCompound Volume Growth

24%24%20%20%

10%10%

0%0%H1H1 H2H2 H1H1 H2H2 H1H1 H2H2 H1H1H2H2 H2H2 H1H1

Volume Growth in HalfVolume Growth in Half

01/0201/0298/9998/99 99/0099/00 00/0100/0196/9796/97 97/9897/98

FOR THE CUSTOMERFOR THE CUSTOMER

CLUBCARDCLUBCARD

STEP CHANGESTEP CHANGE

• Budgeted savings exceeded

• On track to deliver £200m savings in

full year

• Budgeted savings exceeded

• On track to deliver £200m savings in

full year

STEP CHANGESTEP CHANGE

STEP CHANGESTEP CHANGE

NEW DEPOTSNEW DEPOTS

DEVELOPMENT PROGRAMMEDEVELOPMENT PROGRAMME

REGENERATIONREGENERATION

EXPRESSEXPRESS

98/9998/99 99/0099/00 00/0100/01 01/02F01/02F 02/03F02/03F

1717

4545

8585

2727

150150No of Express StoresNo of Express Stores

NON FOODNON FOOD

NON FOODNON FOOD• Market leader in volume sales of Health & Beauty

• DVD sales up by over 300%

• Home Entertainment sales up 40%

• Ladieswear sales up 54%

• Market leader in volume sales of Health & Beauty

• DVD sales up by over 300%

• Home Entertainment sales up 40%

• Ladieswear sales up 54%

• 48% market share on launch of Harry Potter paperback• 48% market share on launch of Harry Potter paperback

NUTRICENTRENUTRICENTRE

EXTRAEXTRA

TESCO PERSONAL FINANCETESCO PERSONAL FINANCE

Operating Profit (£m)Operating Profit (£m)

H1H1 H2H2 H1H1 H2H2 H1H1 H2H298/9998/99 99/0099/00 00/0100/01 01/0201/02

H1H1

2020

88 88

00 1155

1414

TESCO PERSONAL FINANCETESCO PERSONAL FINANCE

• 2.25m customer accounts

• 1m credit cards

• Instant travel insurance

• Cheque deposits at checkout

• 2.25m customer accounts

• 1m credit cards

• Instant travel insurance

• Cheque deposits at checkout

TESCO.COMTESCO.COM

TESCO.COMTESCO.COM

• Fastest organic growth rate

• Strong results

• Progress in line with clear strategy

• Fastest organic growth rate

• Strong results

• Progress in line with clear strategy

CONCLUSIONCONCLUSION