Download - Tesco Annual Review 2011
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ovvw
1 Chairmansstatement
2 Tescoaroundtheworld
4 ChiefExecutivesreview
6 Ourvision
b vw
14 Ourbusiness
16 GrowingtheUKcore18 Tobeanoutstanding
internationalretailer
20 Tobestrongineverything
wesell
22 Growingretailservices
24 Communityattheheart
ofwhatwedo
26 Buildingbrands
28 Buildingourteam
mm fc
m
30 SummaryreportoftheDirectors
33 Groupfinancials
36 OurBoardofDirectors
IBC Financialcalendar
* nderlying diluted earnings per share grth
alulated n nstant tax rate asis; 12.8%
at atual tax rates
+8.1%Grup sales (inluding v): 67,573
+12.3%nderlying prit ere tax: 3,813
+11.3%Grup prit ere tax: 3,535
+10.8%*nderlying diluted earnings
per share: 35.72p
+10.8%Diidend per share: 14.46p
Ourcorepurposeistocreatevalueforcustomerstoearntheirlifetimeloyalty.
OurValuessitattheheartofourbusiness.Theyare:
Noonetriesharderforcustomers;and
Treatpeoplehowweliketobetreated.
C
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After14yearsasCEO,TerryLeahyannouncedhisretirementin
Juneand,aspartofourlong-termsuccessionplan,PhilipClarke
replacedhimatthehelminMarch2011.
Terryisundoubtedlyoneoftheleadingbusinessmenofhis
generation.Underhisleadershipwehavemorethanquadrupled
oursalesandprofits,expandedinto13countriesoutsidetheUK
andenterednewmarketssuchasonlineretailingandfinancial
services.OnbehalfofeveryoneatTescoandallourshareholders,
itisaprivilegetothankTerryforhisunrivalledcontributiontothe
successofthebusiness.Therecouldbenobetterpersontoleadusgoingforwardthan
PhilipClarke.PhiliphasworkedatTescothroughouthiscareer,
spendingmanyyearsinRetailandCommercial.Hejoinedthe
TescoBoardin1998and,aspartofhisroleasAsia,Europeand
ITDirector,hasbeenattheheartofmanyofourmostimportant
developmentsandoperationalimprovementsinrecentyears,
suchasentryintoChina,TurkeyandIndiaandtheintroduction
oftheTescoHindustanServiceCentre(HSC)ourglobal
servicesarm.
IsettheNominationsCommitteetheobjectiveofdeliveringa
seamlesssuccessionandIamdelightedwiththeoutcome.The
handoverprocessfromTerrytoPhilipwasverysmooth.Ihave
everyconfidencethatunderPhilipsleadership,Tescowillgoon
toachieveevengreatersuccessinthefuture.
InorderfortheTescoBoardtobetterreflecttheglobalnature
ofourbusiness,providemorefocusonkeyareasofperformance
anddeliveronourimmediateobjectives,wemadeadditional
changesinMarch2011.TimMasonhasbecomeDeputyCEO
andChiefMarketingOfficerinadditiontohisroleasPresident
andCEOFresh&Easy.
RichardBrasherhasassumedthenewlycreatedroleofCEOfor
theUK,aswellashavingresponsibilityfortheRepublicofIreland,
whilstDavidPottshasbecomethefirstCEOofourgrowingAsia
business.LaurieMcIlweehastakenonresponsibilityforGroup
StrategyinadditiontohisroleasCFO.
Iampleasedtoreportanothergoodsetofresultsinwhathasbeenachallengingyearinsome
ofourmarkets.
AndrewHigginsonandLucyNeville-Rolfewillcontinueintheir
rolesasCEORetailServicesandExecutiveDirector(Corporate
andLegalAffairs)respectively.
TherehavealsobeenafewchangestotheNon-executive
membersoftheBoardthisyear.RodneyChaseCBEretired
fromhispositionasDeputyChairmanandSeniorIndependent
DirectorinJuly.PatrickCescau,whohasservedontheBoardsince
February2009,hasreplacedRodneyasSeniorIndependentDirector.
CharlesAllenCBEandDrHaraldEinsmann,whohadbothserved
ontheTescoBoardsinceFebruary1999,alsoretiredinJulyand
werereplacedbyStuartChambersandGarethBullock.
Stuart,formerlyCEOofNSGGroupandPilkingtonplc,has
replacedCharlesasChairmanoftheRemunerationCommittee.
Gareth,formerGroupExecutiveDirectorofStandardChartered
PLC,hasjoinedtheAuditCommittee.
IwouldliketothankCharles,HaraldandRodneyfortheirexcellent
adviceandimportantcontributionsoveracombined30years
service,andalsoformallywelcomeGarethandStuart,whobring
withthemawealthofinternationalexperienceandnewexpertise
infinancialservices,furtheraddingtotheoverallstrengthofthe
TescoBoard.
Diidend
Iamdelightedtoreportthatwehaveagainincreasedourdividend
forthe27thconsecutiveyear.TheBoardhasproposedafinal
dividendof10.09ppershare,takingthefull-yeardividendto
14.46p.Thisrepresentsanincreaseof10.8%onlastyearsfull-year
dividend,whichisinlinewiththegrowthinunderlyingdiluted
earningspershareatconstanttaxrates.
cunity
Thisyear,wedonatedover64milliontocharityagainmeetingourtargettodonatetheequivalentofover1%ofourprofitsto
charitiesandgood causes.
Wevemadefurtherprogresstowardsourgoalofbecoming
azero-carbonbusinessby2050.Thisyearwehavereduced
emissionsfromourbaselineportfolioofbuildingsby7.7%.
our peple
Ourgrowthoverthepastyearisadirectresultofthededication,
passionandhardworkofourpeopleateamwhichisnowover
492,000strong.Imdelightedthatourshareownershipincentive
schemesarehelpingourstafftogettheirownpersonalstake
inthebusiness.Thisyear216,000employeessharedarecord
105.5millionthroughourSharesInSuccessscheme.OnbehalfoftheBoard,Iwouldliketothankallofourpeoplefortheir
ongoingcommitmenttoprovidingthebestpossibleservice
forourcustomers.
David Reid
Chairman
VRVIW
TESCOPLCAnnualReviewandSummaryFinancialStatement2011 1
Chairmans statement
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Creatingvaluefor
customersacrossallourbusinesses
2 TESCOPLCAnnualReviewandFinancialStatement2011
esco around the world
VRVIW
UK
eenue*
40,766muer stres
2,715plyees
293,676elling spae (sq t, % Grup)
36.7msqft35.4%
esco Bank
eenue*
919mplyees
1,274
U
eenue*
495muer stres
164plyees
4,134elling spae (sq t, % Grup)
1.7msqft1.6%
plyee igures represent the aerage nuer eplyees during the year
230 eplyees arss sia and urpe rk in latins ther than thse listed
* eenues are sales exluding v and exlude the ipat fc 13 (uster lyalty shees)
eenue r urpe inludes frane; reenue r sia inludes ndia
GDP grth: nist ntelligene nit
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TESCOPLCAnnualReviewandFinancialStatement2011 3
eenue* GDP grth
() tres plyees (% real hange pa)
outh Korea 4,984 354 23,131 6.1
hailand 2,844 782 38,395 7.9
China 1,141 105 27,096 10.3
Malasia 794 38 11,023 7.2
Japan 476 140 4,367 4.0
urope
eenue*
9,192muer stres
1,082plyees89,559elling spae (sq t, % Grup)
30.2msqft29.2%
India
n ndia, e hae an exlusie
ranhise agreeent ith
rent, the retail ar the ata
Grup. we are supprting the
deelpent their tar
bazaar rat.
Asia
eenue*
10,278muer stres
1,419plyees
104,071elling spae (sq t, % Grup)
35.0msqft33.8%
eenue* GDP grth
() tres plyees (% real hange pa)
Republic of Ireland 2,332 130 13,344 -0.8
Poland 2,156 371 24,932 3.8
Hungar 1,649 205 21,157 1.2
Czech Republic 1,355 158 12,812 2.3
lovakia 996 97 9,105 4.0
urke 700 121 8,038 8.1
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benefittheperformanceandcompetitivenessofeachofour
businessesaroundtheworld.
Wewillbea modern and innovative compan.Wellstay
aheadofthecurve,anticipatingchangesandadaptingforthe
sakeofourcustomersandstaff.
Weare,andwewillremaina growth compan.Wewill
continuetopursuegrowthinallpartsofthebusinessinthe
UK,internationally,inservicesandacrossgeneralmerchandise,
clothingandelectricals.
Moredetailonournewvisioncanbefoundonpages6to13.
Toputthisvisionintopractice,ourstrategyisevolvingwith
aslightchangeinemphasiswhichbuildsonthesuccessofour
previousfive-partstrategythathasservedussowelloverthe
past14years.Soourstrategywillnowhavesevenparts.Much
ofitwillbefamiliarbutwithsomeimportantnewadditions
aroundbeingamulti-channelretailer,creatinghighlyvalued
brandsandbuildingourteam:
TogrowtheUKcore
Tobeanoutstandinginternationalretailerinstores
andonline
Tobeasstrongineverythingwesellasweareinfood
Togrowretailservicesinallourmarkets
Toputourresponsibilitiestothecommunitiesweserve
attheheartofwhatwedo
Tobeacreatorofhighlyvaluedbrands
Tobuildourteamsothatwecreatemorevalue
Moredetailsonourstrategycanbefoundonpage14.
Management structures
Wevemadesomechangestoourmanagementstructuresin
ordertoequipthebusinesstodeliverourstrategyandvision.
ThismeansCEOsforeachofourmainareasoffocustheUK,
Asia,ServicesincludingTescoBank,EuropeandtheUSbeing
supportedbytheintegratingfunctionssuchasITandFinance
toleveragetheskillandscaleoftheGroup.
ThebiggestpartofthischangewasintheUK,whichnowhas
itsownCEOandmanagementboardforthefirsttime.Thiswill
bringmorefocusandenergytoourlargestbusiness.Ofcourse,
structuresdontmanagecompanies,peopledoandIm
confidentthatatalllevelswehavetheverybestteamworking
hardtodeliverthebestshoppingtripforourcustomers.
IhaveinheritedagreatlegacyandIamreallyexcitedaboutthe
future.Intheendofcourse,weknowitsallaboutperformance;
thatswhatmattersandthatswhatweaimtodeliver.
Philip Clarke
GroupChiefExecutive
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Tobethemosthighly
valued
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esco Clubcard
Allretailingislocal.AndClubcardisoneofthewaysinwhichwe
canberesponsivetolocalcustomerneeds.Inadditiontorewarding
customersfortheirloyalty,Clubcardprovidesuswithinsightfrom
millionsofcustomertransactions.Fromthiswecandeveloptailored
ranges,promotionsandmarketingbycountryorregioninfact
rightdowntotheindividualcustomerviatheirClubcardmailing.
TheknowledgeandexpertiseofoperatingClubcardwasdeveloped
intheUKbuthasnowbeenrolledouttoafurther11countries
acrosstheGroup,withmoremembersinAsiaandEuropethan
athomeintheUK.
F&FWevebeensuccessfulatexportinganumberofourbrands
internationally,tailoringthemtolocaltrends,needsandpriceranges.
F&Fisagoodexampleofhowoneofourbrandshasspread
globallyandwonlocally.WerebringingthebenefitsofourGroup
skillandscaletoourbuyingandsourcingoperations,helpingto
reducecostsandimprovequality.InCentralEuropeforexample,
95%ofourclothingsupplierbaseisthesameasIrelandandthe
UK,eventhoughtowinineachmarket,weadaptourrangeto
localtrends,tastesandclimates.
F&Fisnowintenofourmarketsandisthemarket-leadingclothing
brandintheCzechRepublic,HungaryandSlovakia.Wealso
openedourfirststand-aloneF&FstoreinPraguethisyear.
World-class training for national talent
Weknowthattobeasuccessfulinternationalretailerweneedto
combinedeeplocalknowledgewithglobalexperiencethisiswhy
allofourinternationalmanagementteamsareamixtureof
nationalsandpeoplefromourUKbusiness.
Inaddition,theexperienceofworkinginternationallyhelpsus
attract,retainanddevelopourpeopleoverafifthofourdirectors
arecurrentlyworkingoutsidetheirhomecountry.
OurAcademysupportsthedevelopmentofbothoperational
expertiseandleadershipexcellence.Managementcoursesare
developedbasedonglobalbestpracticeandthenusedtotrain
teamsineachlocalmarket.OurfirstdedicatedAcademycentre
willopeninSeoulservingAsiainJuly.
OURVISION
learn re aut ur
isin and strategy:
http://ar2011.tescoplc.com/
businessreview/ourstrateg
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nline retailing
Customersexpecttobeabletoshopwhereandwhentheywant
asshoppinghabitshavechangedovertheyearswevechanged
too.AswevegrownfromaUKsupermarketchaintowards
becominganinternationalmulti-channelretailerwevecontinued
toinnovateeverystepoftheway.
Wewereviewedaspioneerswhenwefirstlaunchedanonline
grocerybusiness11yearsago.Itsnowthelargestmostprofitable
businessofitskindintheworld.
Usingtheirsmartphones,ourcustomerscannowscanthebarcode
ofgroceryitems,orderonlineandhavetheirshoppingdeliveredto
theirhome.
A leader in green retailing
Asaglobalbusinessweknowthatwecanmakearealdifference
intacklingclimatechangecuttingourownemissions,working
withsuppliersandhelpingcustomerstocuttheircarbonfootprint.
Wealsounderstandthatsuccessfulbusinessesneedtobegreen
togrow.
Our2050targettobeazero-carbonbusinesswillbeachieved
throughimprovedefficiencyandbygeneratingourenergyfrom
renewablesources.Weremakinggoodprogressoverthepast
yearwehavereducedemissionsfromourbaselineportfolioof
buildingsby7.7%.
Wehavepledgedtohelpcustomerscuttheircarbonfootprintsby
50%by2020.WehaveworkedwiththeCarbonTrustandother
stakeholderstodevelopauniversalcarbonfootprintlabelwhich
describestheemissionsassociatedwitheachproduct.Since
January2008,wehavecarbonlabelledmorethan500everyday
productsintheUKandhavestartedtolabelproductsinSouth
Korea,helpingourcustomerstomakegreenerchoices.
OURVISION
500+Prduts arn laelled sine 2008
learn re aut ur
isin and strategy:
http://ar2011.tescoplc.com/
businessreview/ourstrateg
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UK: an outstanding business
WehavemorethandoubledsalesandprofitinourUKbusiness
overthelastdecade,cementingourpositionasclearmarket
leader.Yetthereremainsignificantopportunitiesforfurther
growth.TheUKhasthelowestgroceryretailspacepercapitaof
anycountryintheEU;only54%ofshoppersareabletoreachaTescoExtrawithin15minutesandwehaveonlyasmallshareof
theconveniencesector.
Beyondgrocerywevedevelopedastrongpositioninmanyother
categoriessuchasclothing,electricalsandentertainment.Butwith
amarketshareofaround4%inthenon-foodsectorthereisstill
plentymoretocome.
International growth
Morethantwo-thirdsofourprofitgrowthnowcomesfrom
marketsoutsidetheUK.WeopenedourfirstinternationalTesco
storein1995;todaywerein13marketsacrossEurope,Asiaand
NorthAmerica.65%ofourfloorspaceisnowoutsidetheUK,and
ourbusinessesinAsiaandEuropearecollectivelythesamesizeasthewholeofTescowas11yearsago.Wevebuiltsuccessful,diverse
businessesacrosstheworld,yetthejourneyisonlyjustbeginning.
Wevealreadydevelopedmarket-leading,highlyprofitable
businessesinanumberofcountries.InSouthKorea,ourlargest
internationalbusiness,Homeplus,alreadygenerates5billion
revenue.Yet,ifHomeplusweretogrowtohavethesame
proportionofthetotalretailmarketthatTescohasachievedin
theUK,thebusinesswouldbemorethanthreetimesaslargeas
itistoday.
Duringourfirstdecadeofinternationalexpansionweveproved
thatweareabletodevelopprofitableandmarket-leading
businessesinmanyofourmarkets.Overthenextdecade,in
additiontofurtherexpandingourestablishedoverseasbusinesses,
wearefocusedondeliveringgrowthinthreeoftheworldslargesteconomies:China,IndiaandtheUnitedStates,whichbetween
themofferdecadesoffuturegrowth.
ew services
CustomerstrustTescoandappreciatethatweprovidevalue,
simplicityandgoodservice.Thisisourapproachwitheverything
wesellandisthekeytooursuccessinfollowingthecustomerinto
newareassuchasbankingandtelecoms.
TescoBankintheUKnowhasover6.5millioncustomeraccounts
andgeneratesannualprofitsof264million.Wevemadeparticularly
goodprogressincreditcards.InFebruary,oneineightofall
MasterCardandVisacreditcardtransactionsintheUKweremade
onaTescocreditcard.Aswebroadenourofferwithmortgageslaunchingthisyearweaimtobecomethebestchoiceforallour
customersbankingneeds.
WehavealsoestablishedasuccessfulTelecomsbusiness.
TescoMobilenowhasover2.5millioncustomers.Byfocusing
onvalueandgoodserviceandthroughour194PhoneShops
wearechangingthewaythatcustomersbuyphones,services
andaccessories.
OURVISION
learn re aut ur
isin and strategy:
http://ar2011.tescoplc.com/
businessreview/ourstrateg
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Businessreview
ur strateg
In1997,Tescosetoutastrategytogrowthecorebusiness
anddiversifywithnewproductsandservicesinexistingand
newmarkets.Thisstrategyenabledustodeliverstrong,
sustainedgrowthoverthepast14years.Wevefollowed
customersintolargeexpandingmarketsintheUKsuchasfinancialservices,generalmerchandiseandtelecomsand
newmarketsabroad,initiallyinEuropeandAsiaandmore
recentlyintheUnitedStates.
Inordertoreflectchangingconsumerneedsandthe
increasinglyglobalnatureofourbusinessweveevolvedour
strategy.Thestrategynowhassevenpartsandappliestoour
fivebusinesssegmentstheUK,Asia,Europe,theUnited
StatesandTescoBank.
Someelementsofthestrategyremainunchanged.Thegoal
togrowthecoreUKbusinessisasrelevanttodayasitwasin
1997.TheUKisthelargestbusinessintheGroupandakey
driverofsalesandprofit.Therearemanyopportunitiesforfurthergrowthandsowewillcontinueto grow the UK core.
Anotherofouroriginalgoalswastobeasuccessful
internationalretailer.In1997,ourinternationalbusinesses
generated1.8%oftheGroupsprofits.Todaytheyrepresent
25%andwerenoweithernumberoneornumbertwoineight
ofour13marketsoutsidetheUK.Sowerealreadysuccessful.
Ournextstepisto be an outstanding international retailer
in stores and online.
In1997,wewerelargelyafoodretailersowesetourselves
thechallengeofbecomingasstronginnon-foodasinfood.
Asourbusinesshasgrownandweofferaneverwidervariety
ofproductstocustomers,thetermnon-foodnolongerdoes
justicetoalltheproductsandserviceswesell.Wenowaim
to be as strong in everthing we sell as we are in food.
Ourservicesbusinesseshavecomealongwaysincewefirst
includedinourstrategythedesiretodevelopretailingservices.
TodaythesepartsofTescogenerate583millionprofit,
representing16%oftheGrouptotal.Todatethishasbeen
largelyUK-focused,butasmanyofourinternationalbusinesses
havenowestablishedwell-knownbrandsintheirlocalmarket,
itistimetoexpandourambitionsandaimto grow retail
services in all our markets.
In2007,weaddedafifthelementtoourstrategytounderpin
ourcommitmenttocommunitiesandtheenvironment.
Weveupdatedthisobjectiveslightlybyemphasisingour
responsibilitiesintheseareas.Ourgoalisto put our
responsibilities to the communities we serve at the
heart of what we do.
Therearetwonewstrategicgoals,bothofwhichreflectthe
waythatTescohasdevelopedoverthelastdecadeandour
areasofemphasisforthefuture.
Thefirstisto be a creator of highl valued brands .OurbrandhasevolvedfromalogoaboveafewstoresintheUK
toamultitudeofstore,productandservicebrandsacrossthe
world.Buildingbrandsgivesourbusinessmoremeaningwith
ourcustomers.Ononelevel,thisrelatestoourRetailbrands
suchastheTescobranditself,butitalsoreferstoourProduct
brandssuchasF&FandTechnikaandourPillarbrandssuchas
FinestandValue.
Ourfinalgoalisto build our team so that we create more
value.Asourbusinesscontinuestogrowanddiversifyweneed
moreleaderstorunthemanysubstantialbusinessandsupport
functionswithintheGroup.Ourleadersnotonlyhavean
importantroletoday,butalsohavearesponsibilitytohelpbuildabiggerandbetterteamforthefuture.
Ourprogressintheseareasisreviewedoverthefollowingpages.
14 TESCOPLCAnnualReviewandSummaryFinancialStatement2011
ur business
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TogrowtheUKcore
16
Tobeanoutstanding
internationalretailerin
storesandonline
18Tobeasstrongineverything
wesellasweareinfood
20
Togrowretailservices
inallourmarkets
22
Toputourresponsibilitiesto
thecommunitiesweserveat
theheartofwhatwedo
24
Tobeacreatorofhighlyvaluedbrands
26
Tobuildourteamsothat
wecreatemorevalue
28
Ourseven-partstrategy
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TogrowtheUKcore
Inourmarket-leadingUKbusiness,wehavedeliveredasolid
performancebykeepingourfocusonthecustomer,providing
themwithgreatvalue,choiceandservice.
TheUKeconomyisinrecoverybutconsumershavebeenunder
pressurethisyearduetoacombinationofhighpetrolprices,
foodandutilityinflationand,morerecently,theVATincrease.Asaresult,wereexperiencingaperiodofunusuallysubdued
industrygrowth.Excludingpetrol,like-for-likegrowthinthe
industryhasbeensignificantlylowerthanlastyear.
Againstthisbackdrop,ourUKbusinesshasdeliveredasolid
performance.TotalUKsaleswere44.6billion,growingby
5.5%,whichwasaheadofthemarket.UKtradingprofitincreased
by3.8%orby6.4%beforetheeffectsofoursaleandleaseback
programme;principallytheadditionalrentsincurred.
Clubcard
Clubcardisouruniquecustomerloyaltyprogrammeourway
ofsayingthankyoutoourcustomers.Itisnowmorepopularthaneverbefore,withactivemembershipofover15million
customers,comparedto13millionatthestartof2008/9.
Clubcardcontinuestobeasignificantdriverofgrowthforour
businessandensuresthatourcustomerbasecontinuesto
demonstrateconsiderablyhigherlevelsofloyaltythanour
competitors.Formostof2010,Clubcardwasthenumberone
reasonbehindcustomersswitchingtousfortheirweeklyshop.
tores
Newspacehascontinuedtodrivesalesgrowth.Weveopened
over200newstoresin2010/11andhaveastrongopening
programmeforthecomingyear.
Wehavealsorefreshedorextendedover400storesthisyear,
receivingagreatresponsefromcustomers.Forexample,we
haveadded7,000sqfttoWembleyExtra,expandingourWorld
Foodsoffertomeetbettertheneedsofcustomersinthelocal
areaandthestoreisoutperformingby16%.
Range
Ourcustomerstellusthatqualityisincreasinglyimportantto
them,itisnotsimplyaboutfindingthecheapestproduct.
Wehavesteppedupouremphasisonquality,withaccelerated
productdevelopment,leadingtotheintroductionofover2,000
newandimprovedfoodproducts.
Theincreasingimportanceofqualityforcustomersisalso
supportedbythestrongperformanceofourFinestrange,
whichhasoutpacedthegrowthofotherareasofourfood
range,witha6.3%increaseinsalesthisyear.
Manyofourcustomerswanttobuylocallysourcedproducts
tosupporttheirlocalcommunities.Wehavefivededicated
regionalbuyingofficesthroughouttheUKandin2010/11
weincreasedsalesoflocalproductsto1billion,upfrom
850millionin2009/10.
Price
Weremainfocusedondeliveringthebestvaluetoall
customers.ThelaunchofEssentialSavingsinMaywasan
investmentinlowerpricesontheeverydayproductswhich
ourcustomersbuy.Wehaveintroducedmoremulti-buys
intothepromotionprogrammetohelpcustomerssavemoney.Togethertheseinitiativeshavehelpedustomaintain
ourleadingpositioninahighlycompetitivemarketandto
encouragecustomerstoswitchtoTescothroughouttheyear.
Availabilit
Wehavemaintainedhighlevelsofavailabilitythisyear
throughanumberofprogrammes,frombetterpromotional
forecastingthroughtoimprovedprocessesformonitoring
availabilityinourstores.Ourcustomersarebenefitingfrom
thisworkandhavenoticedtheimprovementscustomer
satisfactionwithavailabilityisatarecordhighup7%from
lastyearand13%fromtheyearbefore.
ervice
Weworkcontinuallytoimproveserviceforourcustomers.
Wehavetrainedover80,000staffthisyearinEveryLittleHelps
skillsforcheckouts,supportingthemtodeliverhelpful,friendly
andefficientservice.Wealsoknowhowimportantitisforour
customerstobeabletochoosethecheckoutthatisrightfor
them,soweareworkingtocreatetheidealcheckout
configurationineachofourstoresbasedonthelocal
customerprofile.
16 TESCOPLCAnnualReviewandSummaryFinancialStatement2011
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cbcD
cluard ntinues t play an iprtant rle in
earning usters lyalty. wee ntinued t inest
in Dule Pints, e hae intrdued the big cluard
vuher xhange and e hae expanded ur Partner
eard hee.
No.1reasonforcustomersswitchingtoTesco
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D
es tus, ur usiness in hailand, is ne ur st
suessul internatinal usinesses ith strng pritaility
and the highest return n apital all ur erseas arkets.
we n perate 782 stres ith 11 sq t spae, haing
added a urther 119 stres in the year.
21%SalesinThailand
up21%
18 TESCOPLCAnnualReviewandSummaryFinancialStatement2011
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Tobeanoutstanding
internationalretailerinstoresandonline
Mostofourmarketshaveseensteadyeconomicimprovement
overthepastyearandinsomecasesparticularlyinAsia
sharpimprovement.Countrieshardesthitinthedownturnin
particularHungary,IrelandandtheUnitedStateshavebeen
slowertorecover,althougheventherewearenowseeingsigns
ofimprovement.
AparticularlyencouragingfeatureofourperformanceinAsia
andEuropehasbeenexcellentmarketsharegrowth,withmany
ofourbusinessesseeingstronggrowthinbothcustomer
numbersandlike-for-likesales.
Wehaveresumedafasterpaceofnewspaceopeningnow
thateconomicconditionsaregenerallyimproving.Weopened
6.5msqftofgrossnewspacein2010/11,comparedwith
5.1msqftin2009/10andplantoopenafurther8.4msqft
duringthecurrentyear.
Asia
OurbusinessesinAsiahavedeliveredanothergoodperformanceleadingtoincreasesinsalesandprofits
supportedbyimprovinglike-for-likesalesgrowth,auseful
contributionfromnewstoresandfurtherbenefitsfromour
acquisitioninSouthKoreain2008.
AseconomiesinAsiarecover,weareseeingimprovingsales
trends.Ourperformancewashelpedbyfavourableexchange
ratemovementsbutneverthelessprofitsgrewbyalmost18%
atconstantcurrencyrateswithexcellentgrowthcomingfrom
SouthKoreaandThailand.
OurAsianmarketsofferanexcitinglong-termgrowth
opportunityandwillbeakeyfocusforourfutureinternational
expansion,bothinourestablishedmarketsandinChina.
Wehavecontinuedtoinvestthroughthedownturntoensure
thatweareinanevenstrongerpositionastheeconomic
recoverycontinues.
Thisyearweplantoopen5.1msqftofnewsellingarea.We
havealsocontinuedtomakegoodprogressindeveloping
strongbrandsinourleadingAsianbusinesseswithfurther
expansionofClubcardandourretailservicesbusinesses.
urope
OuroperationsinEuropehavedeliveredrecordresultsand
stronggrowthinsales,profitsandmargins.Recovering
economiesgenerallyhelpedbutkeytothisperformancewas
thestrikingimprovementinthecompetitivenessofourlocal
businesses,whichwonincreasedmarketsharerapidly.
Wehaveinvestedforcustomersthroughlowerprices,sharper
promotionsandClubcard,fundedbystrongproductivityand
substantialearlybenefitsofourpan-Europeansourcing.The
resultingstrongsalesgrowthhasdrivenanimprovementin
profitabilityandmargins.
Salesgrowthvariedacrosstheregionbutallmarketssaw
sharplyimprovedlike-for-likesalesgrowthcomparedwith
2009/10,withagoodcontributionalsocomingfromnewspace.
Withtheimprovingeconomicoutlookwearesteppingup
therateofnewstoreopening.Some2.6msqftofnewspace
wasopenedintheyear,withaprogrammetoaddafurther2.9msqftofnewspaceacrosstheregionin2011/12.
Wehavebeendelightedbycustomerreactiontothe
remodellingandconversionofsomeofourolderhypermarkets
totheExtraformat.Verystrongsalesimprovementshave
beenachievedinthestoreswithanaveragesalesupliftof
16%intheeightcompletedsofar.Theserefitsaredelivering
particularlymarkedupliftsinfreshfoodcategories,health
&beauty,clothingandelectricals.
United tates
CustomerfeedbackatFresh&Easyremainsexcellentand
stronggrowthincustomernumbersisdrivingsteadysalesimprovementineachstore.
Weexpectlossestoreducesharplyinthecurrentyearasstrong
growthinlike-for-likesalescontinuesandimprovedstore
operatingratiosstarttodelivershop-doorprofitability.Wehave
astrongplanforthebusinesstobreak-eventowardstheend
ofthe2012/13financialyear.
TESCOPLCAnnualReviewandSummaryFinancialStatement2011 19
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Tobeasstrongin
everythingwesellasweareinfood
Ourgeneralmerchandise,clothingandelectricalbusinesses
havecontinuedtogrow,despitethechallengesofweak
demandinsomeofourimportantmarkets.
IntheUK,highpetrolpricesandincreasesinVAThavehada
significantimpactondiscretionaryconsumerspending.Many
highstreetretailershavesufferedfromdecliningsalesandhaveissuedprofitwarnings.Tescohasfaredbetterandmaintained
marketsharebutwehaventbeensparedtheimpactof
subdueddemand.IntheUK,generalmerchandise,clothing
andelectricalssalesgrewby0.4%to5.3billion.General
merchandisesalesgrowthwasaffectedbyasmallercomponent
ofextensionsellingspaceinthisyearsnewspaceprogramme,
withextensionsprovidingjust10%ofnewspace.
Inourinternationalmarketsthepicturevariesconsiderablyby
country.MostofourmarketsinEuropeandAsiasawstrong
growthingeneralmerchandiseastheeconomicrecoverytook
holdduringtheyear,althoughanumberofmarketssuchas
IrelandandHungaryremainchallenging.
UK
ImprovingtheperformanceofgeneralmerchandiseintheUK
isoneofourkeypriorities.Ouraimistoofferourcustomersthe
samegreatquality,priceandrangeinourgeneralmerchandise
offerastheywouldfindwiththeirTescogroceryshop.Thefocus
isondeliveringinthreekeyareaswiththeaimofimprovingthe
generalmerchandiseshoppingtripforourcustomers:
Investing in making the ranges more aspirational
Inelectricals,wewerethefirstUKsupermarkettostockthe
AppleiPadandtheAmazonKindletwoofthemostsought-
aftertechnologyproductsonthemarket.Keepingintunewithchangesintechnologyandrespondingquicklytooffer
ourcustomersthelatestelectricalinnovationsiscentraltoour
strategyandtobuildingourreputationasaleadingretailer
ineverythingwesell.
nhancing the shopping experience with
specialist advice
Inover200ofourlargeststores,wehaveTescoTechSupport
teams,madeupofstaffspecificallytrainedtohelpcustomers
withtechnicalqueriesonelectricalitemsfromTVstocameras
andsatellitenavigationsystems.Theadditionaladvicehelps
customersgettherightproductfortheirindividualneeds,
supportingareductioninproductreturns.Alongsideourin-store
teams,wehaveafreeelectricalhelplineforourcustomers,
mannedbyfullytrainedengineers,andadedicatedTech
Supportwebsite.
Developing our multi-channel capabilitOurmulti-channelapproachmakesiteasyforourcustomers
toshopinawaythatsuitsthemonline,in-storeorfrom
catalogues.Customerscanbrowseinacatalogue,orderonline
andthencollectin-storeortheycanorderin-storeandhavethe
goodsdeliveredtotheirhome.Thisyear,over40%ofTesco
Directelectricalpurchaseshavebeenmadeonlineandpicked
upin-storethroughourClickandCollectservice.
urope
InEurope,generalmerchandise,clothingandelectricals
saleswerestrong,reflectinganoverallimprovingconsumer
backgroundandastrengtheningofferinourstores.ClothinginCentralEuropehadasuccessfulyearwitha9%
year-on-yeargrowthintotalsales.Wearenowtheclothing
marketleaderintheCzechRepublic,HungaryandSlovakia.
BuildingonthesuccessoftheF&Fbrand,wehaveintroduced
ourF&FBlueandF&FBasicssub-brandstoprovideourcustomers
withagreaterrangetochoosefrom.Ourfirststand-aloneF&F
storealsoopenedsuccessfullyinPraguelastyear,highlighting
theappealofthebrandintheCzechRepublic.
Asia
OurF&FclothingbrandlaunchedinSouthKoreaandThailand
thisyearandtheearlyresponsefromcustomershasbeenexcellentaverygoodexampleoftheskillandscaleofthe
TescoGroupbeingappliedacrossourglobalnetwork.
LastyearweopenedourfirstthreeSportsMultishopsin
HomeplusstoresinSouthKorea.Theseinnovativesportszones
aredesignedtomeetgrowingcustomerneedsforsporting
goods,inaone-stopshoppingenvironment.SportsMultishop
hasincreasedsalesofsportinggoodsinthesestoresbyover
60%withhighcustomerpenetration.
20 TESCOPLCAnnualReviewandSummaryFinancialStatement2011
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coG
clthing is a key eleent ur uster er in central
urpe and e hae had anther pleasing year ith 9%
sales grth. we are n lthing arket leader in the
czeh epuli, ungary and lakia.
9%Clothingsalesgrowthin
CentralEurope
TESCOPLCAnnualReviewandSummaryFinancialStatement2011 21
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co com
we n hae 194 Phne hps in stres arss the K
and this year, e hae egun t pen Phne hps in ur
rereshed xtra stres in central urpe. our Phne hps
pride ur usters ith supprt and adie s that they
an hse the est ptin r the.
194PhoneShopsintheUK
22 TESCOPLCAnnualReviewandSummaryFinancialStatement2011
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Togrowretailservices
inallourmarkets
InJuly2008whenweannouncedourintentiontotakefull
ownershipofTescoBank,wesetatargettogrowthe
profitabilityofourretailservicesbusinessesfromjustunder
400millionin2007/8to1billion.
Thisyear,wehavemadecreditableprogressinmovingtowards
thistarget.Wehaveattractednewcustomers,grownsalesandprofitandcontinuedtoinvestparticularlyininfrastructure
toequipthebusinessforfurthergrowth.
Wewantallofourcustomers,acrossallofourmarkets,tohave
accesstoourfinancial,telecomsandonlineservices.Wecan
dothisbyapplyingGroupskillandscaleandbuildingonthe
knowledgewhichwehaveacquiredfromourretailservices
experienceintheUK,IrelandandSouthKorea.
In2010/11,totalretailservicessaleswere4.0billion,up12%
on2009/10andtradingprofitgrewto583million.*
esco Bank
Despiteachallengingyearinthewiderbankingsector,and
asitcompletesitstransitiontofullseparationfromTheRoyal
BankofScotland(RBS),TescoBankcontinuestoperformwell.
Thebusinesshasmadegoodprogresswithitssystems
re-platforming,whichwillcompleteasplannedin2011.We
openedournewbankingandinsuranceservicecentresin
GlasgowandNewcastleinOctober2010.Allnewmotorand
homeinsurancebusiness,includingrenewalpoliciessoldsince
thenhave,asplanned,beenwrittenonnewsystems.Wealso
launchedsuccessfullyourfirstnewproductonourownbanking
platformstheFixedRateSaverlastautumn.Thishasbeen
followedbyourrecentinnovativeretailbond.Bothofthese
initiativesexceededplanandservetodiversifyourfunding
baseandincreasetheproportionoflong-termfunding
availabletotheBank.
TheBankhasmadeprogressinkeyareaswithsavings
stronglyup,goodgrowthintheloanbookwithimproved
marginsandanexcellentyearincreditcards,withthe
transactionvalueup20%on2009/10.Thecarinsurancebook
hasalsoresumedgrowth,havingplateauedbeforethechange
ofcontrol,despitetheinevitablechallengesofmigration.
Customeraccountnumbersgrewwellinactivecreditcardsby
11%,personalloansby17%andmotorinsuranceby8%.Our
FixedRateSaverproductsignificantlyexceededexpectations
andweendedtheyearwithabalanceof397million,40%higherthanplannedandwenowhaveone,twoandthree-year
optionsavailableforcustomers.Therangeofproductsavailable
forcustomerswillbebroadenedfurtherthisyearwiththe
plannedlaunchofmortgages.
tesco.com
Ouronlinebusinesses,includingonlinegroceryandTesco
Direct,hadanotherstrongyear.Takingintoaccountour
operationsinSouthKoreaandIreland,totalsalesgrewby15%.
OurUKoperationscontinuedtogrowwell,withdouble-digit
growthingroceryandafurther30%increaseatTescoDirect.
esco elecoms
OurTelecomsbusinessgrewwellduringtheyear,maintaining
strongmarketshare,drivenprimarilybythegrowthofTesco
Mobile.In2010TescoMobilewasoneofthefastestgrowing
UKmobilenetworks,growingitscustomerbaseby24%toover
2.5million.
OurTescoMobilejointventureswithO2inIrelandandSlovakia
areperformingwell.Bothbusinessesaregrowingstronglyand
movedintoprofitforthefirsttimethisyear.
dunnhumb
dunnhumbyhashadaverystrongyear,increasingsalesand
profitsbyover30%withexcellentgrowthintheUKsupplier
businessandfromitsoverseasjointventureswithretailers.
Followingtheacquisitionofthefinal10%ofthebusinessin
thefirsthalfoftheyear,dunnhumbyisnowawhollyowned
subsidiaryofTesco.
*RetailservicesprofitcomprisesprofitfromTelecoms,tesco.com,dunnhumby
andTescoBank,includingUKstoreATMincome.
TESCOPLCAnnualReviewandSummaryFinancialStatement2011 23
Growing retail services
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Toputourresponsibilities
tothecommunitiesweserveattheheartofwhatwedo
Weworkhardtobeagoodneighbourinthecommunities
aroundourstoresandprovidealeadershiproleonthe
environment.Buildingalong-termsustainablebusiness
iscrucialtoourfuturesuccess.
Wewanttobehighlyvaluedbyourlocalcommunities
andthisyear,wehavemadegoodprogresswithourcommunitypromises:
Buyingandsellingourproductsresponsibly;
Caringfortheenvironment;
Providingcustomerswithhealthychoices;
Activelysupportinglocalcommunities;and
Creatinggoodjobsandcareers.
Buing and selling our products responsibl
Weworkinpartnershipwithoursupplierstoensureour
productsaresourcedresponsibly.Wecontinuetoengagewithoursuppliersthroughour
TradingFairlyprogramme.InBangladesh,ChinaandSouth
Africa,wehelpsuppliersandstakeholdersaddresslocaland
nationalchallenges.
Wehavelistenedtoourcustomersandknowthatmany
ofthemwanttobuylocallysourcedproducts.Thisyearin
theUK,wehavereachedsalesof1billionforlocalproducts.
Caring for the environment
Asoneoftheworldslargestretailers,wehaveaclear
responsibilityandasignificantopportunitytoprotectthe
environment.Ouraimistocreatemoresustainableways
ofdoingbusiness.
Ourglobaldirectcarbonfootprintin2010/11was5.44million
tonnesofCO2e(carbondioxideequivalent).Thisyear,we
continuedtodecoupleourbusinessgrowthfromthegrowthin
ourcarbonemissions:whileournetsalesareagrewby8.8%,
ourcarbonfootprintincreasedbyonly1.7%.
Thisyear,weopenedourfirstinternationalzero-carbon
storeinJaromer,CzechRepublic,andcompletedtwomore
zero-carbonstoresintheUK,inWelshpoolandBourne.
Providing customers with health choices
Wewanttohelpourstaffandcustomerstoleadhealthylives.
Asaglobalbusiness,weknowthathealthylivesmean
differentthingsinourdifferentmarkets.
Wehaveaclearroletoplayinmakinghigh-qualityfoodsaffordabletoeveryone,andingivingcustomerstheinformation
theyneedtomakehealthyfoodchoices.Wecanalsouseour
trustedbrandtoencourageourstaffandcustomersacrossthe
worldtoadopthealthy,activelifestyles.
Wecurrentlyhave100%nutritionlabellingoneligible
own-brandfoodlinesinallofourmarkets.Lastyear,we
encouragedover7.2millionstaffandcustomerstoget
activeacrosstheworldexceedingourtargetsinall
ourmarkets.
Activel supporting local communities
WewantTescotobemorethanastoretothestaffandcustomerswholiveinthecommunitiesaroundourstores.
Wehaveexceededourtargetofdonatingatleast1%of
pre-taxprofitstocharitiesandgoodcauses.Intotal,this
meansthatwehavedonatedover64millionthisyear.
Wehavealsoraised7.2millionforourUKCharityofthe
Year,CLICSargent.
WearecontinuingtorolloutourCommunityChampions
Tescoemployeeswhospendaproportionoftheirweek
coordinatingactivitiesintheirlocalcommunities.Wenow
haveover650CommunityChampionsacrosstheGroup.
Creating good jobs and careers
Wehaveover290,000employeesacrosstheUK,makingus
thebiggestprivate-sectoremployerinthismarket,andover
492,000worldwide.Wearededicatedtoprovidingdiverse
careeropportunitiesforallourstaffworldwidefrompositions
instores,torolesforstoremanagers,buyers,accountantsand
lawyers.Thisyear,weincreasedthetotalnumberofstaffinthe
Groupby21,000.
Thisyear,wedevelopedeightnewRegenerationPartnerships
bringingthetotalto35storesandaround4,000jobsfor
long-termunemployedpeople.
24 TESCOPLCAnnualReviewandSummaryFinancialStatement2011
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coo of DD Dco
n uth Krea, e elerated the pening ur 100th hl
xtended duatin and tk ur ttal t 107 in the year.
our uth Krean hls pride peple ith a plae t get
inled in a ariety atiities r dane lasses t king.
940,000+PlacesatourSchools
ofExtendedEducationinSouthKoreathisyear
TESCOPLCAnnualReviewandSummaryFinancialStatement2011 25
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co v D f K
he ppularity ur Pillar rands ith usters has eant
that es value has ee the send largest d rand
in the K ahead ca-cla ith sales re than
1 illin a year.
es value is nly pushed int send plae y es finest.
mre than hal ur usters uy r the finest range n
a regular asis, r finest spetales t finest estaurant
clletin ready eals.
1bnBothFinestandValuenowsell
morethan1bneachyear
26 TESCOPLCAnnualReviewandSummaryFinancialStatement2011
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Tobeacreatorof
highlyvaluedbrands
Whats the benefit to both our stakeholders andour Compan of building brands?
Bybuildingstrongbrandsthroughourownproducts,weoffer
customersincreasedvalue,choiceandquality.Customerstrust
ourbrands.Theyareloyaltoourbrandsbecausetheyknow
whattoexpectfromthemandwhattheystandfor.Withwines,forexample,theFinestlogohelpscustomerstopickoutagood
qualityoptionwithouthavingtobeaconnoisseur.
StrongProductandPillarbrandsgiveusakeypointof
differentiationfromourcompetitorsandenableustocontinue
tomeetthechangingneedsofourcustomers.Oncecustomers
understandthevaluesthatourbrandsstandfor,theyaremore
likelytotrustinourabilitytodiversifyintonewserviceareas.In
financialservices,forexample,withTescoBankwevebrought
straightforwardandgood-qualitybankingsolutionsbasedon
theneedsofourcustomerstoamarketcharacterisedby
complexityandpoorcustomerservice.
Whereverweoperatewesupportlocalcommunities,theircausesandtheenvironment.Throughinitiativessuchasour
CommunityChampionsprogramme,GetHealthywith
TescoLotusinThailandandtheUKTescoGreatSchoolRun,
wereknowntobeagoodneighbour.Bybenefitinglocal
communities,ourbrandhastakenonnewmeaningamong
stakeholdersthatofaresponsibleretailer.
Bydevelopingabrandreputationforofferinggreatvalueandservicetocustomersandbeingaresponsiblemember
ofthecommunity,wecanattractgreatpeopletoworkforus.
Asaresponsibleandflexibleemployerwithatrackrecordof
developingtalentwithinthebusiness,Tescoisalsoseenas
agreatplacetobuildacareer.
Theincreasedemotionalandfunctionalloyaltyfrom
customers,staffandcommunitiesgeneratedbyourbrand
buildinghascontributedtoTescobecomingaprofitable,
sustainablegrowthopportunityforshareholderstoinvestin.
Investmentprovidesuswithfurtheropportunitiestobuild
anddevelopourbrandsacrosstheGroup,inturnallowing
ustodiversifytothebenefitofcustomers,staff,communitiesandshareholders.
rand is a prise, a set undaental priniples that deine a prdut r usiness. t is an intangile
representatin hat a pany stands r in the inds its usters and ther stakehlders.
Pillar brandsProduct brands
Retail brands
Phone Shop
TESCOPLCAnnualReviewandSummaryFinancialStatement2011 27
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Tobuildourteam
sothatwecreatemorevalue
Wetreatpeoplehowweliketobetreated.Wewantourpeople
toenjoyworkingatTesco.Ourpeopledoagreatjobeach
andeverydaybygivingourcustomersthebestpossible
shoppingtrip.
Bycreatinganopenenvironmentoftrustandrespect,our
peoplefeelsupported,theysharetheirknowledgeandexperienceandworkhardtogiveourcustomersgreatservice.
Wesupportourpeople,trustingintheirabilitytodeliverwhile
helpingthemtoreachtheirfullpotential.Weencourageour
peopletolearnonthejobandtakeresponsibilityfromdayone.
Everyyear,webuildourplansfortheyeararoundourPeople
Promises.Wewantallofourpeopleacrossallofourmarketsto:
betreatedwithrespect;
haveanopportunitytogeton;
haveamanagerwhohelpsthem;and
haveaninterestingjob.
ItsthroughourPeoplePromisesandourbenefitspackage
thatweareproudtosaythatourpeoplestaywithusfora
longtime.AroundhalfofourDirectorpopulationhasatleast
12yearsservice.
Inrecognitionoftheimportanceofpeopleacrossourbusiness,
ourGroupPersonnelDirector,AlisonHorner,isnowpartof
ourExecutiveCommittee.Alisonisagreatexampleoftalent
developedinTesco,with12yearsofexperienceacrossthe
businessinbothPersonnelandOperations.
Recruitment and growth
AsTescogrowsanddiversifies,weareabletooffermorejobs
topeopleinthecommunitiesaroundourstores,depotsand
offices.Thisyearwehaverecruited21,000peopleworldwide.
Ourgraduateprogrammesfasttrackgraduatetraineeswith
highpotentialintoleadershippositions.Thisyearwehave
recruitedaround140CommercialgraduatesintoUKand
CentralEuropeanbuyingandgeneralmerchandiseroles
thelargestnumberofCommercialgraduatesthatwehave
employedsincetheprogrammebegan.Thisispartofour
ongoingcommitmenttoinvestinfutureleaders.
alent and promotions
OneofourPeoplePromisesisanopportunitytogeton.
Wepromisetosupportanddevelopourpeoplethroughout
theircareers.
Wewantthewomeninourteamstoachievetheirfullpotential.Inthelastfouryearsthenumberoffemaledirectorshas
increasedbynearly70%acrosstheGroup,andwehavethree
womenonourBoard.
Building capabilit
Aspartofourongoingcommitmenttobuildingcapability,
weareinvestingintheTescoAcademy.OurAcademysupports
thedevelopmentofourpeoplethroughtrainingcourses,
networkingopportunitiesandmentoring.
InJuly,wewillopenourzero-carbonAcademycentrein
Incheon,SouthKorea.AsiaisarapidlygrowingregionforTesco
andtheAcademywillhelpustobuildcapabilityinthearea.
InChina,ourStoreManagerProgrammehasbeencreatedso
thatwecanrecruitanddeveloppeopletobecomeourfuture
StoreManagers.TheprogrammestartedinOctober2010with
22candidatestakingpart.
Rewards and benefits
Ourpeopledoagreatjobforourcustomersandwewant
themtofeelvaluedandrewarded.Weinvestinpayand,in
theUK,wehavethehighestpayratesforcustomerassistants
ofanymajorsupermarket.
Acrossallofourmarkets,weofferawiderangeofcompetitive
benefits.IntheUS,wepayatleast75%ofmedical,dental,
prescriptionandvisioncosts.IntheUKwehaveanopen
definedbenefitpensionschemewhichisgreatlyvaluedby
ourstaffandrareamongFTSE100companies.
Shareownershipincentiveschemeshelpourstafftogettheir
ownpersonalstakeinTesco.216,000staffsharedatotalof
105.5millionwhentheShares|nSuccessschemematured
in2010.
28 TESCOPLCAnnualReviewandSummaryFinancialStatement2011
Building our team
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c DvoPm
we eliee that he-grn anagers ake aluale
usiness leaders eause they understand ur ulture and
apprah. our ne co, Philip clarke, is an exaple
this, haing started rk at es part-tie as a shly.
rss the usiness, e urrently hae alst 30,000 peple
n deelpent prgraes, gaining the knledge,
leadership skills and qualiiatins r their next rle.
30,000Peopletrainingfor
theirnextrole
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Principal activit and business review
TheprincipalactivityoftheGroupisretailingandassociatedactivitiesinthe
UK,China,theCzechRepublic,Hungary,theRepublicofIreland,India,Japan,
Malaysia,Poland,Slovakia,SouthKorea,Thailand,TurkeyandtheUS.The
Groupalsoprovidesretailbankingandinsuranceservicesthroughitssubsidiary,
TescoBank.ThesummaryoftheGroupfinancialsisonpages33to35.
Dividends
TheDirectorsrecommendthepaymentofafinaldividendof10.09pper
ordinaryshare,tobepaidon8July2011tomembersontheRegisterat
thecloseofbusinesson3May2011.Togetherwiththeinterimdividend
of4.37pperordinarysharepaidinDecember2010,thetotaldividendfor
theyearwillbe14.46pcomparedwith13.05pforthepreviousyear,an
increaseof10.8%.
Directors
DetailsofthecurrentmembersoftheBoardareshownonpage36.
GarethBullockandStuartChambersjoinedtheBoardon3July2010.
TheywillofferthemselvesforelectionandtheotherDirectorswill
offerthemselvesforre-electionattheAnnualGeneralMeetingon
1July2011.
Corporate governance
TescoPLCiscommittedtothehigheststandardsofcorporategovernance.
TheBoardconsidersthatTescoPLCcompliedinallrespectswiththe
CombinedCodeonCorporateGovernancefortheyearended26February
2011withtheexceptionofprovisionA.3.2,inrespectofwhichtheCompany
wasnotincomplianceforpartoftheyear,andcompliedwiththenew
UKCorporateGovernanceCodeinallrespectswiththeexceptionof
provisionsB.1.2andB.6.2.
ProvisionsA.3.2andB.1.2requirethatatleasthalfoftheBoard,excluding
theChairman,shouldcompriseNon-executiveDirectorsdeterminedby
theBoardtobeindependent.TheBoardrecognisestheimportanceof
abalancedboardwithanappropriatelevelofindependence.TheBoard
hadonemoreExecutivethanNon-executiveDirectors(excludingthe
Chairman)betweenJuly2010andtheendofthefinancialyear.FollowingSirTerryLeahysretirementandtheappointmentofPhilipClarkeas
hissuccessorasCEOinMarch2011,thereisnowanequalnumberof
ExecutiveandindependentNon-executiveDirectorsandtheBoardis
againbalancedandcompliantwiththisprovision.
ProvisionB.6.2ofthenewUKCorporateGovernanceCoderequiresthat
everythreeyearsthereshouldbeanexternallyledevaluationoftheBoards
performance.TheBoardusuallycarriesoutanexternalBoardevaluation
everythreeyears,withinternalevaluationsintheinterveningyears.The
lastexternalevaluationtookplacein2007andanexternallyfacilitated
evaluationwouldnormallyhavetakenplacethisyear.Giventheextensive
Boardandseniormanagementchangestakingplaceitwasdecidedthat
itwouldbemoreappropriatetoconductaninternalevaluationprocessand
tocarryoutanexternallyfacilitatedprocessnextyearoncethesechanges
havehadanopportunitytobedin.
AfullcorporategovernancestatementiscontainedintheAnnualReport
andFinancialStatements2011.
ummar report of the Directors on remuneration
Remuneration polic
ItistheroleoftheRemunerationCommitteetodetermineandrecommend
totheBoardtheremunerationpolicyfortheChairmanandExecutive
Directors.Tescohasalong-standingpolicyofvaluingtalentandexperience
andseekstoprovideincentivesfordeliveringhigh,sustainableandprofitable
growthwhichleadstoastrongincreaseinvalueforshareholders.The
remunerationstrategyistailoredtorewardthedeliveryofstrongyear-on-year
earningsgrowthaswellassustainedperformanceinthelongerterm.
TheRemunerationCommitteehasreviewedourexecutiveremuneration
arrangementsinlightofourstrategy,ouroperationalgoalsandthe
feedbackfromshareholders.Whilstwebelievethatourremuneration
arrangementsarebroadlycompetitiveandoperatewell,theCommittee
hasfoundopportunitiestosimplifyandre-balancewhereappropriate.Full
detailsarecontainedintheAnnualReportandFinancialStatements2011.
Compliance
Incarryingoutitsduties,theRemunerationCommitteegivesfull
considerationtobestpractice.TheCommitteewasconstitutedand
operatedthroughouttheyearinaccordancewiththeprinciplesoutlined
intheListingRulesoftheFinancialServicesAuthorityderivedfromthe
CombinedCodeonCorporateGovernance.TheRemunerationreporthasbeendrawnupinaccordancewiththeCombinedCodeonCorporate
Governance,Schedule8oftheLargeandMediumSizedCompanies
andGroups(AccountsandReports)Regulations2008andtheFinancial
ServicesAuthorityListingRules.TheRemunerationReportalsocomplies
withthedisclosuresrequiredbytheDirectorsRemunerationReport
Regulations2002.
AsummaryofDirectorsemolumentsandinterestsissetoutonpages
31and32.ThefullRemunerationReportisprovidedintheAnnualReport
andFinancialStatements2011.
30 TESCOPLCAnnualReviewandSummaryFinancialStatement2011
UMMARy FIACIA AM
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Independent auditors statement tothe members of esco PCWehaveexaminedthesummaryfinancial
statementwhichcomprisestheSummary
ConsolidatedIncomeStatement,Summary
ConsolidatedBalanceSheet,SummaryGroup
CashFlowStatement,SummaryreportoftheDirectorsandSummaryreportoftheDirectors
onremunerationsetoutonpages30to35.
Respective responsibilities of directors
and auditors
Thedirectorsareresponsibleforpreparingthe
summarisedAnnualReviewandSummary
FinancialStatementinaccordancewithapplicable
UnitedKingdomlaw.
Ourresponsibilityistoreporttoyououropinionon
theconsistencyofthesummaryfinancialstatement
withinthesummarisedAnnualReviewwiththe
fullannualfinancialstatements,theReportofthe
DirectorsandtheDirectorsRemunerationReport
anditscompliancewiththerelevantrequirements
ofsection428oftheCompaniesAct2006andtheregulationsmadethereunder.
Wealsoreadtheotherinformationcontained
inthesummarisedAnnualReviewandconsider
theimplicationsforourstatementifwebecome
awareofanyapparentmisstatementsormaterial
inconsistencieswiththesummaryfinancial
statement.Theotherinformationcomprises
onlytheChairmansstatement,theChief
Executivesreviewandtheotheritemslisted
onthecontentspage.
Thisstatement,includingtheopinion,has
beenpreparedforandonlyforthecompanys
membersasabodyinaccordancewithsection
428oftheCompaniesAct2006andfornoother
purpose.Wedonot,ingivingthisopinion,accept
orassumeresponsibilityforanyotherpurposeorto
anyotherpersontowhomthisstatementisshown
orintowhosehandsitmaycomesavewhere
expresslyagreedbyourpriorconsentinwriting.
WeconductedourworkinaccordancewithBulletin
2008/3issuedbytheAuditingPracticesBoard.
Ourreportsonthecompanysfullannualfinancial
statementsdescribethebasisofourauditopinions
onthosefinancialstatements,theReportofthe
DirectorsandtheDirectorsRemunerationReport.pinion
Inouropinionthesummaryfinancialstatement
isconsistentwiththefullannualfinancial
statements,theReportoftheDirectorsandthe
DirectorsRemunerationReportofTescoPLC
forthe52weeksended26February2011and
complieswiththeapplicablerequirementsof
section428oftheCompaniesAct2006,and
theregulationsmadethereunder.
PricewaterhouseCoopers P
CharteredAccountantsandStatutoryAuditors
EmbankmentPlace
6May2011
otes:
(a)ThemaintenanceandintegrityofTescoPLC
websiteistheresponsibilityofthedirectors;
theworkcarriedoutbytheauditorsdoes
notinvolveconsiderationofthesematters
and,accordingly,theauditorsacceptno
responsibilityforanychangesthatmayhave
occurredtothefullannualfinancialstatements
orthesummaryfinancialstatementsince
theywereinitiallypresentedonthewebsite.
(b)LegislationintheUnitedKingdomgoverning
thepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinother
jurisdictions.
Directors emoluments Fixedemoluments Performance-relatedemoluments
Salary000
Benefits3
000
Short-termcash
000
Short-termdeferredshares
000
tal2010/11
000
Total2009/10
000
xeutie Diretrs
RichardBrasher 825 40 765 632 2,262 2,402
PhilipClarke 825 38 765 632 2,260 2,701
AndrewHigginson 825 65 765 632 2,287 2,724
SirTerryLeahy 1,432 77 1,328 1,386 4,223 5,220TimMasonbasesalary1 825 376 716 649 2,566 3,616
TimMasonsupplement1 200 172 156 528 649
TimMasontotal 1,025 376 888 805 3,094 4,265
LaurieMcIlwee 752 57 765 632 2,206 1,789
LucyNeville-Rolfe 625 83 574 474 1,756 1,809
DavidPotts 825 86 765 632 2,308 2,708
n-exeutie Diretrs
CharlesAllen2 35 35 95
GarethBullock2 52 52
PatrickCescau 109 109 89
StuartChambers2 64 64
RodneyChase 2 49 49 135
KarenCook 80 80 77HaraldEinsmann 2 28 28 77
KenHanna 92 92 79
KenHydon 98 98 95
DavidReid(Chairman) 629 64 693 677
JacquelineTammenomsBakker 76 76 65
Total 8,446 886 6,615 5,825 21,772 25,007
1 TimMasonssalaryismadeupofabasesalaryandanon-pensionablesalarysupplement(shownseparately).TimMasonsbenefitsaremadeupoftravel,medical,
tax-relatedcostsandservicesandfreesharesawardedundertheallemployeeShareIncentivePlan(SIP).Paymentsinrelationtotaxequalisationonequityawards
grantedpriortohisappointmentasUSCEOtotalling768,000arenotincludedinthetableabove.
2 GarethBullockandStuartChamberswereappointedduringtheyear.Thefiguresinthetableabovearefromtheirdatesofappointment.CharlesAllen,RodneyChase
andHaraldEinsmannretiredduringtheyear.
3 WiththeexceptionofTimMason,benefitsaremadeupofcarbenefits,chauffeurs,disabilityandhealthinsurance,staffdiscount,gym/leisureclubmembershipand
freesharesawardedundertheallemployeeSIP.UndertheSIP,sharesintheCompanyareallocatedtoparticipantsintheschemeuptoHMRCapprovedlimits(currently
3,000perannum).TheamountofprofitallocatedtotheschemeisdeterminedbytheBoardtakingintoaccountCompanyperformance.
TESCOPLCAnnualReviewandSummaryFinancialStatement2011 31
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Disclosable interests of the Directors, including famil interests
Optionsheldat
27February20101
(oronappointmentiflater) Granted Exercised Lapsed
Valuerealisedduring2010/11
000
optins heldat 26 feruary
20111,3
Ordinarysharesat26February
20112
xeutie Diretrs
RichardBrasher 2,044,136 909,721 1,298 45,567 2 2,906,992 1,220,793
PhilipClarke 2,849,105 907,282 219,123 45,567 871 3,491,697 1,824,638
AndrewHigginson 2,849,105 907,282 219,123 45,567 949 3,491,697 1,349,712
SirTerryLeahy 10,639,425 1,791,369 2,997,330 79,819 5,175 9,353,645 7,075,849
TimMason 1,159,489 387,638 1,298 0 2 1,545,829 3,876,520
LaurieMcIlwee 743,466 739,584 0 0 0 1,483,050 222,301
LucyNeville-Rolfe 1,417,358 681,078 1,298 29,919 2 2,067,219 452,886
DavidPotts 2,849,105 909,721 786,050 45,567 977 2,927,209 1,851,253
n-exeutie Diretrs
CharlesAllen4
GarethBullock4
PatrickCescau
StuartChambers
4
5,500RodneyChase 4
KarenCook
HaraldEinsmann 4 355,984
KenHanna
KenHydon 30,093
DavidReid 194,337
JacquelineTammenomsBakker
tal 24,551,189 7,233,675 4,225,520 292,006 7,978 27,267,338 18,459,866
1 OptionstoacquireordinarysharesshownabovecompriseoptionsheldundertheExecutiveShareOptionschemes,DiscretionaryShareOptionPlan,SaveAsYouEarn
scheme,andnilcostoptionsunderthePerformanceSharePlan(PSP),ExecutiveIncentivePlan(EIP)andGroupNewBusinessIncentivePlan.
2 OrdinarysharesshowninthistableincludesharesheldundertheShareIncentivePlanandsharesheldunderapromiseawardedunderthePSP,EIPandUSLongTerm
IncentivePlan.
3 Theexercisepriceofoutstandingopt ionsrangesfrom0pto473.75p.
4 CharlesAllen,RodneyChaseandHara ldEinsmannretiredfromtheBoar don2July2010.GarethBullockandStuartChamber swereappointedon3July2010.
32 TESCOPLCAnnualReviewandSummaryFinancialStatement2011
UMMARy FIACIA AM
ummar report of the Directors
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Group sales,includingVAT,increasedby8.1%to67.6billion.Atconstant
exchangerates,salesincreasedby6.6%(includingpetrol)and6.0%
(excludingpetrol).
Group trading profitwas3,679million,up7.8%onlastyearandGroup
tradingmargin,at6.0%,increasedby4basispoints.Underling profit
before taxroseto3,813million,anincreaseof12.3%.Beforeproperty,underlyingprofitbeforetaxgrewby12.2%.Onastatutorybasis, Group
operating profitroseby10.2%to3,811million.Group profit before
taxincreased11.3%to3,535million.
et finance costsincreasedto333million(314millionlastyear).
However,beforethenon-cashIAS19,32,and39adjustments,actualnet
interestcostfellby83millionto334million.Thisreflectsthecontinued
reductioninnetdebt.
TotalGroup taxhasbeenchargedataneffectiverateof24.4%(lastyear
26.4%).ThisreductionwaslargelydrivenbyareductionintherateofUK
corporationtax,andalowerJapanimpairmentthanlastyear.Weexpect
thetaxratefor2011/12tobebroadlyunchanged.
Cash Flow and Balance heet.Netdebtreducedto6.8billion,ahead
ofourtargetof7.0billion,helpedbystrongcashgenerationintheseasonallyimportantsecondhalfoftheyear.Duringtheyear,werepaid
926millionofourdebtearlyandrepaid777millionofmaturingbonds.
Thestrengthofourproperty-backedbalancesheetwasagaindemonstrated
throughcontinuedstronginvestordemandforourpropertysaleand
leasebacktransactionsduringtheyear.
Weexpectnetdebttofallfurtherintheyearsahead.Lookingatour
liabilitiesintheround,wewillbefocusingmoreonfixedchargecoveras
ourprimarybalancesheetmetric,whichwearetargetingtokeepbetween
4and4.5times.Wealsoaretargetingaratioof2.5timeslease-adjusted
netdebttoEBITDAR*whichrepresentsasimilarleveltowherewewere
priortotheHomeverandTPFacquisitions.
Groupcapital expenditure intheyearwas3.7billion(lastyear3.1billion),
alittlehigherthanourexpectationatthebeginningoftheyear,mainlyas
aresultofexchangeratemovements.CapitalexpenditureintheUKwas1.7billion,withanadditional0.2billionintheBank,principallyforthe
re-platformingofoursystems,and1.8billioninInternational.Forthe
2011/12yearweplantoinvestaround4.0billionincapitalexpenditure
andgoingforwardweexpectannualcapitalexpendituretototalbetween
5%and5.5%ofGroupsales.
GroupReturn on Capital mploed(ROCE)increasedsubstantially
to12.9%(lastyear12.1%).Weexpecttodeliverourtargetincreaseof
200basispoints,onour2005/6baseof12.6%,by2014/15,takingROCE
to14.6%.Thisincreasewillbedrivenpredominantlybyoperational
improvementgrowthinassetturnoverandmargincombinedwith
improvedcapitalefficiency(workinprogressreleaseandourproperty
programme).Bygeographyandbusinesssegment,theincreasesin
ROCEwillbebroadlybased,comingfromAsia,Europe,theUS,the
UKandTescoBank.
TheBoardhasproposedafinal dividendof10.09ppershare,taking
thefull-yeardividendto14.46p.Thisrepresentsanincreaseof10.8%
onlastyearsfull-yeardividend,whichisinlinewiththegrowthin
underlyingdilutedearningspershareatconstanttaxrates.Itisalsothe
27thconsecutiveyearofdividendincrease.Thefinaldividendwillbepaid
on8July2011toshareholdersontheRegisterofMembersattheclose
ofbusinesson3May2011.
*EBITDARdefinedasstatutoryprofitbeforeinterest,tax,depreciation,amortisationandrent.
TESCOPLCAnnualReviewandSummaryFinancialStatement2011 33
UMMARy FIACIA AM
Group financials
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ummar Group income statement
ear ended 26 feruary 2011
52 eeks2011
52weeks2010
m
cntinuing peratins
eenue (sales exluding v) 60,931 56,910Costofsales (55,871) (52,303)
Grss prit 5,060 4,607
Administrativeexpenses (1,676) (1,527)
Profitarisingonproperty-relateditems 427 377
operating prit 3,811 3,457
Shareofpost-taxprofitsofjointventuresandassociates 57 33
Financeincome 150 265
Financecosts (483) (579)
Prit ere tax 3,535 3,176
Taxation (864) (840)
Prit r the year 2,671 2,336
ttriutale t: Ownersoftheparent 2,655 2,327
Non-controllinginterests 16 9
2,671 2,336
arnings per share
Basic 33.10p 29.33p
Diluted 32.94p 29.19p
n-GP easure: underlying prit ere tax
52 eeks2011
52weeks2010
m
Profitbeforetax 3,535 3,176
Adjustmentsfor:
IAS32andIAS39FinancialInstrumentsfairvalueremeasurements (19) (151)
IAS19EmployeeBenefitsnon-cashGroupIncomeStatementchargeforpensions 113 24
IAS17Leasesimpactofannualupliftsinrentandrent-freeperiods 50 41
IFRS3BusinessCombinationsintangibleassetamortisationchargesandcostsarisingfromacquisitions 42 127
IFRIC13CustomerLoyaltyProgrammesfairvalueofawards 8 14
IAS36ImpairmentofAssetsimpairmentofgoodwillarisingonacquisitions 55 131
Restructuringcosts 29 33
Underlyingprofitbeforetax 3,813 3,395
34 TESCOPLCAnnualReviewandSummaryFinancialStatement2011
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Group financials
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ummar Group balance sheet 26 feruary2011
27February2010
m
Non-currentassets 35,337 34,258
Currentassets(includingnon-currentassetsheldforsale) 11,869 11,765
Currentliabilities (17,731) (16,015)
Netcurrentliabilities (5,862) (4,250)
Totalassetslesscurrentliabilities 29,475 30,008
Non-currentliabilities (12,852) (15,327)
et assets 16,623 14,681
Equityattributabletoownersoftheparent 16,535 14,596
Non-controllinginterests 88 85
tal equity 16,623 14,681
Balance sheetNetassetshaveincreasedby1,942millionto16,623million.Non-currentassetsincreasedby1,079million,afterchargingdepreciation
andamortisationof1,420million.
Groupcapitalexpenditurewas3.7billion.UKcapitalexpenditurewas1.7billion.TescoBankcapitalexpenditurewas0.2billion.Totalinternational
capitalexpenditureroseto1.8billion;1.0billioninAsia,0.6billioninEuropeand0.2billionintheUS.IntheyearaheadweforecastGroupcapital
expendituretobearound4.0billion.
ummar Group cash flow statement
ear ended 26 feruary 201152 eeks
2011
52weeks2010
m
Cashgeneratedfromoperations 5,366 5,947
Interestpaid (614) (690)
Corporationtaxpaid (760) (512)
et ash r perating atiities 3,992 4,745
et ash used in inesting atiities (1,859) (1,877)
cash ls r inaning atiities
Dividendspaidtoequityowners (1,081) (968)
Othernetcashflowsfromfinancingactivities (1,955) (2,639)
et ash r inaning atiities (3,036) (3,607)
Reconciliation of net cash flow to movement in net debt
ear ended 26 feruary 201152 eeks
2011
52weeks2010
m
Netdecreaseincashandcashequivalents (903) (739)
InvestmentinTescoBank (446) (230)
EliminationofnetincreaseinTescoBankcashandcashequivalents 56 (167)
Debtacquiredonacquisition (17)
Netcashoutflowtorepaydebtandleasefinancing 2,870 2,780
DividendreceivedfromTescoBank 150 150
(Decrease)/increaseinshort-terminvestments (292) 81
Increaseinjointventureloanreceivables 159 45Othernon-cashmovements (438) (249)
Derease in net det in the year 1,139 1,671
Openingnetdebt (7,929) (9,600)
Closingnetdebt (6,790) (7,929)
NB.Thereconciliationofnetcashflowtomovementinnetdebtnoteisnotaprimarystatementanddoesnotformpartofthecashflowstatementbutformspartofthenotestothefinancialstatements.
TESCOPLCAnnualReviewandSummaryFinancialStatement2011 35
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1
1. David Reid64
Non-executiveChairman
DavidReidbecameNon-executiveChairman
on2April2004.Priortohisappointmenthewas
DeputyChairmanofTescoPLCandhasserved
ontheTescoBoardsince1985.Davidisa
Non-executiveDirector(SID)ofReedElsevier
GroupPLCandChairmanofbothKwik-FitGroup
andWhizz-Kidz.InNovember2010Davidwas
appointedoneofPrimeMinisterDavid
CameronsBusinessAmbassadors.
2. Philip Clarke50
GroupChiefExecutive
PhilipClarkewasappointedtotheBoardon
16November1998.Priortohisappointment
asCEOinMarch2011hewasAsia,Europe&IT
Directorandhaspreviouslyheldanumberof
rolesinstoreoperations,commercialand
marketing.
3. im Mason53
DeputyGroupCEOandCMO
andCEOFresh&Easy
TimMasonhasbeenPresidentandChief
ExecutiveOfficer,Fresh&EasyNeighborhood
MarketsinceJanuary2006andbecameDeputy
GroupCEOandChiefMarketingOfficerin
March2011.HewasappointedtotheBoard
on16February1995.HejoinedTescoin1982.
4. Richard Brasher 49
CEOUKandROI
RichardBrasherwasappointedtotheBoardon
15March2004.HejoinedTescoin1986.Hehas
heldanumberofmarketing,commercialand
storeoperationspositions,mostrecentlyBoard
CommercialDirector,beforebeingappointedUKandROICEOinMarch2011.
5. Andrew Higginson53
CEORetailServices
AndrewHigginsonwasappointedtotheBoard
on17November1997.Priortohisappointment
asChiefExecutiveofRetailingServicesin
July2008hewasGroupFinanceandStrategy
Director.HeisChairmanofTescoBankanda
Non-executiveDirectorofBSkyBplc.
6. aurie McIlwee48
ChiefFinancialOfficer
LaurieMcIlweewasappointedtotheBoard
on27January2009.HejoinedTescoin2000as
UKFinanceDirectorandbecameDistribution
Directorin2005.LaurieisaChartered
ManagementAccountant.
7. uc eville-Rolfe, CMG58
ExecutiveDirector(CorporateandLegalAffairs)
LucyNeville-RolfewasappointedtotheBoard
on14December2006.ShejoinedTescoin1997
fromtheCabinetOffice.SheisDeputyChairof
theBritishRetailConsortium,aNon-executive
DirectorofITVplcandtheCarbonTrustanda
memberoftheChinaBritainBusinessCouncil,
theUKIndiaBusinessCouncilandtheCorporate
LeadersGrouponClimateChange.
8. David Potts53
CEOAsia
DavidPottswasappointedtotheBoardon
16November1998.HejoinedTescoin1973.
From1997hedirectedtheintegrationofour
businessesinNorthernIrelandandtheRepublic
ofIrelandbeforereturningtotheUKin2000as
DirectorresponsibleforUKRetailOperations.
From2004,Davidsresponsibilitiesalsoincluded
theUKSupplyChainandtheRepublicofIreland,beforebeingappointedCEOAsiainMarch2011.
9. Patrick Cescau62
SeniorIndependentDirector
10. Gareth Bullock57
Non-executiveDirector
11. tuart Chambers55
Non-executiveDirector
12. Karen Cook57
Non-executiveDirector
13. Ken Hanna57
Non-executiveDirector
14. Ken Hdon66
Non-executiveDirector
15. Jacqueline ammenoms Bakker57
Non-executiveDirector
16. Jonathan lod 44
CompanySecretary
Directorsagesasat26February2011.
2 3 4 5 6
7
13
8
14
9
15
10
16
11 12
36 TESCOPLCAnnualReviewandSummaryFinancialStatement2011
UMMARy FIACIA AM
ur Board of Directors
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Financialyearend2010/11 26February2011
Finalex-dividenddate 27April2011
Recorddate 3May2011
Q1InterimManagementStatement June2011
AnnualGeneralMeeting 1July2011Finaldividendpaymentdate 8July2011
Half-yearend2011/12 27August2011
InterimResults October2011
Q3InterimManagementStatement December2011
ChristmasandNewYearTradingStatement January2012
Financialyearended2011/12 25February2012
Pleasenotethatdatesareprovisionalandsubjecttochange.
Designedandproducedby CON R A N DES IG N G R OU P
ThisReportisprintedonRevive100PureWhiteSilkpaperandhasbeen
independentlycertifiedonbehalfoftheForestStewardshipCouncil(FSC).
Theinksusedareallvegetableoilbased.
PrintedatPureprintGroupLtd,ISO14001,FSCcertifiedandCarbonNeutral
UMMARy FIACIA AM
Financial calendar
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8/4/2019 Tesco Annual Review 2011
40/40
es Pc
es use