Tesco Full-Year Report 2022

Delivered strong financial performance, with retail free cash flow ahead of expectations:

• Strong sales performance across the Group, with Retail LFL sales up 5.1%, as volumes held up relatively well despite cost-of-living pressures and some further post-pandemic normalisation
  • UK & ROI LFL sales up 4.7%, including UK up 3.3%, ROI up 3.3% and Booker up 12.0%
  • Central Europe LFL sales up 10.4%
• Statutory revenue £65,762m, up 7.2% including fuel sales up 23.3%
• Total retail adjusted operating profit £2,487m, down (6.3)% at constant rates
  • UK & ROI adjusted operating profit £2,307m, down (7.0)% driven by the impact of lower YoY volumes and ongoing investment in our customer offer, with Save to Invest largely offsetting significant operating cost inflation
  • C.Europe adjusted operating profit £180m, up 3.6% with volumes resilient in the face of significant market inflation
• Bank adjusted operating profit £143m, down (18.8)%, reflecting post COVID-19 macroeconomic provision release last year
• Statutory operating profit £1,525m, after £(982)m non-cash impairment charge due primarily to higher discount rates
• Strong retail free cash flow⁵ £2,133m, including working capital inflow of £468m
• Flat net debt year-on-year, with net debt/EBITDA ratio in middle of target range at 2.6x
• Adjusted diluted EPS 21.85p, flat year-on-year; statutory diluted EPS 10.08p, down YoY due to impairment charge
• Proposed final dividend of 7.05pps to take full year dividend to 10.90pps (in line with last year’s full year dividend)