Financial Highlights

27 February 2012

David Reid

Non–Executive Chairman

Sir Richard Broadbent

Chairman from 30th November

Philip Clarke

Group Chief Executive

Steering wheel

Steering wheel

Customers

Clubcard is Tesco’s unique customer loyalty programme. In 2012 it was more popular than ever, with over 15.4 million customers. This is our way of ensuring that our customer base continues to demonstrate considerably higher levels of loyalty than our competitors.

Customers

14%

16,2%

19,2%

30,1%

Based on a survey regarding retailer’s customers who do more that 50% shopping being loyal to a retailer

Steering wheel

Community

Charity for Alzheimer’s Society & Dementia

Community Roadshow

Donation of emergency

supplies to 2000 people, £20

financial aid and 3000 relief packs

of goods

Tesco Charity Trust & British Red

Cross donates £50,000 after the

earthquake in Japan to Japanese

Red Cross

Tesco Charity Trust & British Red

Cross donates £25,000 to Turkish Red Crescent for the survivors of the earthquake

Steering wheel

Operations

Self-service checkouts and the scan-as-you-shop devices improved the in store services.

Steering wheel

People

People

Tesco is Britain’s largest private sector employer set to recruit 440 graduates in the

next 12 months. Next year Tesco is aiming to increase the number of graduates by 30%.

Biggest ever “Shares in Success” payout with over £225,000

staff across the UK receiving a share of a

£110m.

3.25 million unemployed people in UK with 3.75% forecast by the end of the year. The Sunday times “Top 100 employers in Britain” named Tesco top 5 while Waitrose drops down from the league table.

Steering wheel

Financial Headlines

• UK market situation

• Tesco International

• Financial Highlights

• Tesco steering wheel

• Affected Non-food Sales

• Slow recover within retail stocks World-wide

Stock

Market

Crash

Emergency

Tax

New

Planning

Regulations

UK

Competition

Commission

• Stopped further development

UK market

Tesco Bank

2010 – Tesco aimed to emerge into international banking

2011 - slowed down the final stage of Tesco Bank system of

immigration

Impact of Windfall Tax

Tesco Bank

Despite the negative economic market situation and the bank failures in Belgium, Greece, Italy and France Tesco Bank increase the sales by 8.8% to £1bn.

dotcom

Tesco Direct offered access to savings on thousands of nearly new and used cars at customers with 2000 Tesco Clubcard points. The car business is worth £24 billion each year in UK so Tesco decided to enter the market.

December was a rough month as Tesco Direct was attacked by hackers. This affected our online sales that were expected to increase by 20%.

Telecoms

•Tesco mobile in now operating in UK, Ireland and Slovakia •21 September 2011 in cooperation with Vodafone we launched a new mobile service in Hungary. • 16 December 2011 Tesco launched “MyEdge” including Android Google Crome operating system • 27 February 2012 recoded sales of £3 million

£ 65.6 bn

£10.32 bn

Group sales

£3.5 bn

Group trading profit

Underlying profit before tax

Dividends 12.63 p

2011-2012

Group performance

Growth vs competitors

Tesco

Asda

J Sainsbury

Wm Morrison

Despite the difficult economic market and the decrease of sales, Tesco is still the leading retailing company in the UK

06/07 08/09 10/11 12/13

40

35

30

20

15

10

25

5

Tesco International

Asia

• 28 February - further develop of shopping malls in China - Project value: £170m • 07 June - new training Academy - Project capacity: 24.000 staff per year • 20 November - the planning approvals for Tesco Mall in China have been halted due to a sudden change of the Communist Party Despite the difficult market situation our business in Asia in still strong and looks for further development into the next year

Asia Winning locally Applying our skills globally

66,6%

33,5%

Sales £11bn

Profit £3.7bn

Tesco International

Europe

• November 2011 – withdrawal of Italy from the EU • January 2012 – withdrawal of Greece from the EU • February 2012 – Bank failures in Belgium, Greece, Italy and France. • This situation lead to the collapse of consumer confidence

Europe

Regardless of the difficult economic situation Tesco manages to maintain a high level of performance compared with the other European retailers and did not have to withdraw from any market.

67,1 %

32,9%

Sales £9.4bn

Profit £3.1bn

Winning locally Applying our skills globally

USA Tesco International

• California declared bankruptcy in December • Public sector unemployment was affected • Customer demand decreased in our Fresh and Easy stores • We decided to withdraw from the market in order to maintain our company strong and growing

USA Winning locally Applying our skills globally

82,1%

17,9%

Sales £5.75bn

Profit £1,03bn

Despite the difficult market situation that we had to face in the USA, Tesco managed to have a positive economic balance as before the withdrawal we reach a growth of 14.5% to £5,75 billion compared with £5,02 billion from 2011.

The profit of our group

The withdraw from the USA market did not impacted our trading profit as it was representing only 1%.

Group tax

2011 - 24.3%

2012 – 23.0%

Fall in the UK corporation tax rate

2013 – 24.0%

Deficit reductions plan of the new Coalition

Government

Group capital expenditure

£0.3bn

UK investments

£0.5bn

Bank investments

£1.0bn

International investments

2011/2012

2013 Between 5% and 5.5% of Group sales is our target of next year capital expenditure.

£2.9 billion

Share price and dividends

2009 2010 2011 2012

11,96p 13,05p

14,46p

12,63p

World-wide Market crash dramatically influenced the recovery of the food and drug retailing sector. Facing this economically situation the Board had approved a dividend of 12,63p per share. However, considering the current market conditions we are still 0.5% above the FTSE 100.

The satisfaction of our shareholders is of extreme importance to us, so we are doing everything that is in our power to maintain the continuity of our payments towards the shareholders, while our competitors had to stop the dividend payments.

Valuable and competitive

• 2nd year in a row Tesco was named top retailer in the world for its efforts in tackling climate chance according to Carbon Disclosure Project • Multi-Channel Retailer of the year in “Oracle World Retail Awards” 2011 • “Best Company Award” at the annual BIC (Business in the Community)

Summary

• We increased our customer loyalty • We increased our profits in Banking sector and expecting further development in the next year • We developed in telecommunications sector • We are the leading retailing company on the UK market • Investments in Asia with encouraging performance despite the political situation • Dividends above the FTSE despite the negative economic market

Q & A

Financial Highlights

27 February 2012