Serving Shoppers A Little Better Every Day - Tesco
Serving shoppersa little better every day.Annual Report and Financial Statements 2020
ContentsStrategic report.2020 highlights.1Chairman’s statement.2Group Chief Executive’s review.3Strategic review.4Our business model.6Financial review.7Key performance indicators.12Principal risks and uncertainties.13Longer-term viability statement.19Task Force on Climate-related Financial Disclosures.20Little Helps Plan (LHP).21Non-financial reporting statement andsection 172 statement.23Corporate governance.Chairman’s letter.24Board leadership and company purpose.25Board of Directors.27Executive Committee.31Division of responsibilities.33Composition, succession and evaluation.35Nominations and Governance Committee.38Stakeholders.40Corporate Responsibility Committee.44Audit Committee.46Directors’ remuneration report.52Directors’ report. 65Financial statements.Independent auditor’s report. 69Group income statement.78Group statement of comprehensive income/(loss). 79Group balance sheet.80Group statement of changes in equity.81Group cash flow statement.83Notes to the Group financial statements.84Tesco PLC – Parent Company balance sheet.148Tesco PLC – Parent Company statementof changes in equity.149Notes to the Parent Company financial statements.150Related undertakings of the Tesco Group.155Other information.Supplementary information (unaudited).161Glossary – Alternative performance measures.164Five-year record.170Shareholder information.171
Strategic reportOur business was built with a simple mission – to be thechampion for customers. That’s as true today as it was whenJack Cohen first set out his East London market stall in 1919.Our core purpose is ‘serving shoppers a little better everyday’ – putting customers at the heart of everything we doand guiding every decision we make.2020 highlights.Headline measures.Group salesΔ(0.7)% 56.5bnRetail free cash flowΔ(c)132.1%13.5%(2019: 56.9bn)Diluted EPS before exceptional and other itemsΔ(b)27.9%Group operating profit before exceptionaland other itemsΔ(a)17.92pDividend per share58.6%(2019: 14.01p) 2,063mNet debtΔ(c)(8.4 )%(2019: 889m) 2,959m(2019: 2,607m)9.15p(2019: 5.77p) (12.1)bn(2019: (13.2)bn)Statutory measures.Statutory revenue1.3%Statutory profit before tax(18.7)% 64.8bnOperating profit(4.9)%(2019: 63.9bn) 1,315mStatutory diluted EPS(2019: 1,617m)(26.8)% 2,518m(2019: 2,649m)9.54p(2019: 13.04p)Visit www.tescoplc.com/ar2020for more information.Δ(a)(b)(c)Alternative performance measures (APMs)Measures with this symbol Δ are defined in the Glossary section on pages 164 to 169.All measures reported on a continuing operations and 52-week comparable basis.Change shown at actual exchange rates. 2019 figures restated for adoption of IFRS 16as explained in Note 1 and Note 37.Excludes amortisation of acquired intangibles and excludes exceptional items by virtue oftheir size and nature in order to reflect management’s view of underlying Group performance.Diluted EPS before exceptional and other items refers to diluted earnings per share fromcontinuing operations before exceptional items and amortisation of acquired intangibles,net pension finance costs and fair value remeasurements of financial instruments.Net debt and Retail free cash flow exclude the impact of Tesco Bank.Tesco PLC Annual Report and Financial Statements 20201
Chairman’s statementA year of significant progress.Highlights.–– Significant progress in the financial year ended 29 February 2020, as wemarked the completion of our turnaround.–– Announced the proposed sale of our businesses in Thailand and Malaysiawill release material value, and allow us to simplify and focus our business.–– Appointed a new Group Chief Executive, Ken Murphy, to succeed Dave Lewisin October 2020.This report covers our 2019/20 financial year, which endedon 29 February 2020.That year was one of significant progress, as we achieved ourturnaround goals, further improved our business for customers,and firmly established ourselves on a strong financial footing.However, while the entire Tesco business has dealt with someserious challenges through the last five years of turnaround,undoubtedly the most significant of these occurred after our2019/20 year end, with the global outbreak of COVID-19.As Dave reflects in his Group Chief Executive’s review, our morethan 400,000 colleagues have risen to the challenge incredibly,working day and night to ensure our customers have access tothe food and essentials they need, in a safe environment.I cannot commend them highly enough for their efforts,which have been nothing short of inspirational.The remainder of this report addresses, for the most part,the 2019/20 financial year - before the greatest impact of thesignificant changes that COVID-19 brought to our business, andindeed our society as a whole.Our priority is to keep an absolute focus on serving customersand to play our part in feeding the nation, as the situation withCOVID-19 continues to dominate our current trading followingthe year end. Given these circumstances, we have includedcommentary on COVID-19 in this report where possible,while recognising that, at the time of writing, the situationis rapidly evolving.For the latest updates on our response to the COVID-19 outbreak,I would encourage you to visit www.tescoplc.com/covid-19.From turnaround to growth.In 2019/20, we marked the end of our turnaround.The management team set in 2015 and shared in 2016 a strategy tostabilise the business, to rebuild the brand, and to move towardsthe next chapter of growth. Guided by six strategic drivers, thewhole Tesco team worked tirelessly to achieve these objectivesand by October 2019, we had achieved every one of our turnaroundgoals. That momentum continued through this year, with full-yearGroup operating profit before exceptional items and amortisationof acquired intangibles up 13.5% to 2,959m.We now have a strong platform from which we can enter a newstrategic phase, focused around earnings growth, cash profitabilityand cash flow, and with customer satisfaction at the heart. In June2019, we hosted a Capital Markets day, which set out untappedvalue opportunities for the Group, broadly categorised acrossthree areas: growth, innovation and enabling technology.2Tesco PLC Annual Report and Financial Statements 2020After the year end, we also announced the proposed sale of ourbusinesses in Thailand and Malaysia. This transaction, supportedunanimously by the Board, will unlock significant value from anexceptionally high-quality business, and allows us to further simplifyand focus the Group. On completion, and subject to approval, wehave taken the decision to return c. 5bn of the proceeds toshareholders through a special dividend.CEO succession.In October 2019, we shared the news that Dave will leave thebusiness later this year. The Board and I believe that Dave hasdone an outstanding job in turning the business around andreconnecting Tesco to its core purpose.The Board undertook a thorough succession process to find thebest possible candidate and, as a result, we made the decision toappoint Ken Murphy to take up the baton from Dave.Ken will bring to Tesco a wealth of experience, proven leadership ininternational retail businesses, a strong strategic mind and a trackrecord in commercial and brand. What was very important to theBoard in the recruitment process was that the new CEO would bea good fit for the strong culture that we have developed.On behalf of the whole Board, I am extremely grateful to Dave foreverything that he has achieved, and we look forward to welcomingKen Murphy to the Board, and to Tesco, in October.John AllanNon-executive Chairman7 April 2020
Strategic reportGroup Chief Executive’s reviewTogether, we can do this.Highlights.–– Five years of turnaround now complete - built a better business forcustomers, colleagues, suppliers and shareholders.–– Strong foundations allow us to tackle the challenges of COVID-19 froma position of strength.In our five years of turnaround, we have taken decisive action torefocus our business on customers, making our offer morerelevant and more competitive than ever before.By focusing completely on customers, re-engaging our colleaguesand fundamentally rethinking our relationship with suppliers,we have managed to deliver on the turnaround plan we set outin 2015. I am very proud of the achievement of the team overthese five years.As a stronger, more customer-focused business, we are also in abetter position to step up and meet the unprecedented challengesof the COVID-19 outbreak.Our colleagues have risen brilliantly to those challenges. In verydifficult circumstances the whole Tesco team has pulled togetherto look after our customers and each other, doing everythingpossible to provide more of the food that people need, in a cleanand safe environment.I am incredibly proud of what our colleagues are doing, and alsothe way that they’re doing it – working day and night to ensureeveryone has access to the essentials, and putting our customersfirst, even while many of our colleagues have very real concernsabout their own loved ones.At the time of writing, it seems likely that we are closer to thebeginning of this situation than the end. While we are still learningand adjusting, we will step up and respond to each new challengeas it comes. And at all times, our focus will be the same: to ensurethe health and safety of our customers and colleagues, to increasefood and household supplies across stores and online, and tosupport our fantastic colleagues.There is almost no part of our operation that remains untouchedby this situation.–– To ensure food is available for all, we have changed the way werun our stores - taking actions to manage demand and supportthe smooth running of our supply chain.–– Our Online team is exploring every opportunity possible toincrease capacity, so that we can help the most vulnerable insociety. For the majority of our customers that are able to shopin store safely, we have introduced distancing measures toprotect customers and colleagues.–– We have taken steps to support colleagues on sickness leave andalso provided long-term sickness support for those required toisolate for 12 weeks. We also recruited more than 45,000additional colleagues in the two weeks to 7 April.–– We have announced a 30m support package for localcommunities tackling COVID-19, including 25m towards ourfood donation programme.–– Other parts of our business are stepping up too. Booker issupporting thousands of independent retailers in communitiesright across the UK, and Tesco Bank is providing critical servicesat a time of financial difficulty for many customers.It is impossible to present an exhaustive list, or to overstate howmuch has changed – and the extraordinary lengths the wholeTesco team has gone to – in order to look after our customers.Recognising the incredible contribution of our colleagues, inMarch we announced a 10% bonus for front-line colleagues inthe UK & Ireland, with similar colleague recognition schemesin Central Europe and Asia.The contribution of our supplier partners has also beenoutstanding. Existing supplier partners have increased productionof key products to meet increased demand from customers, andnew suppliers have stepped up to support at short notice.We also know that for many of our partners, and in particularour smallest suppliers, this is a challenging time economically.To support their businesses, we have reduced our paymentterms for small suppliers from 14 days to five days.These actions are the right ones to take, in a unique and difficultset of circumstances. Some of the things we’ve done have resultedin significant extra costs, as we meet unprecedented levels ofdemand and do everything possible to protect the health andsafety of our customers and colleagues.Our financial performance, and the strong platform we have builtover the last five years, means that we are well-placed to dealwith this and to continue meeting customers’ needs, and gives usconfidence that the long-term future of our business is secure.As a team, Tesco has faced into many challenges over the last fiveyears and we will rise to the challenges of the current situation inmuch the same way, working together to put customers first.Together, we can do this.Dave LewisGroup Chief Executive7 April 2020Tesco PLC Annual Report and Financial Statements 20203
Strategic reviewTurnaround delivered.We have now delivered every element of our turnaround plan. From this positionof strength, the transformation of our business continues at pace.Key performance for all four stakeholder groups summarised below.Customers.14/1519/20ChangeSuppliers. 1029 19 ptsBrand perception(b)6.826.1 19.3 ptsQuality perception(c)12.227.4 15.2 pts6.121.0 14.9 pts14/15(d)19/20(d)ChangeGreat place to work(e)70%82% 12% ptsGreat place to shop(f)2344 21 ptsInclusive culture(g)73%81% 8% ptsEngagement in purpose(h)64%86% 22% ptsCustomer NPS(a)Value perception(c)Colleagues. 14/1519/20ChangeOverall satisfaction(i)55%80% 25% ptsSimple, transparent andeasy to deal with(i)Treats me fairly(i)36%71% 35% pts55%82% 27% ptsShareholders. 14/15(j)19/20(j)Operating profit(k)Free cash flow(l)Total indebtedness(l)DividendMarket capitalisation(m)(a)(b)(c)(d)(e)(f)(g)4Walnut Tesco Multichannel tracker. Reflects % of UK Fans minus Critics answering thequestion ‘Based on your most recent experience of doing a grocery shop how likely is itthat you would recommend this store to a friend or colleague?’.Based on YouGov Brand Index which is a score based upon six component questionscovering quality, value, reputation and satisfaction; 12-week rolling data.Reflects YouGov Brand perception measures of quality and value on a 12-week rolling basis.14/15 data based on our 2014 What Matters to You survey and 2019/20 data based onour 2020 Every Voice Matters survey.% of colleagues recommending Tesco as a great place to work.The net promoter score for colleagues recommending Tesco as a great place to shop.% of colleagues agreeing that 'Treat people how we like to be treated is practised atTesco' (2014) and 'I feel I can be myself at Tesco without fear of judgement' (2020).Tesco PLC Annual Report and Financial Statements 2020(h)(i)(j)(k)(l)(m) 940m 2,959mChange 2,019m (1,340)m 2,063m 3,403m (21.7)bn (14.7)bn down 32%1.16p9.15p 689% 13.7bn 23.2bn 9.5bn% of colleagues agreeing that 'I can see a clear link between my work and the Tesco vision'(2014) and 'The link between my team’s work and Tesco’s purpose is clear' (2020).Reflects % of UK & ROI suppliers responding positively to the statements 'Overallsatisfaction of working with Tesco', 'Tesco is simple, transparent and easy to deal with','Tesco treats me fairly', as part of th
Task Force on Climate-related Financial Disclosures. 20 Little Helps Plan (LHP) . the 2019/20 financial year - before the greatest impact of the . we have taken decisive action O
GLOBAL ECOMMERCE MARKET RANKING 2019 - 3 TOP 30 MARKETS Our top 30 ranking was scored and weighted along the following key metrics: Logistics ranking Average revenue per shopper Total market revenue Percentage of population shopping online Number of online shoppers Percentage of cross-border shoppers Number of cross-border shoppers
twice the amount of time shopping than shoppers who only visited legitimate sites. During the full study period, European shoppers who went to counterfeit sites vis-ited just over 2.5 times more counterfeit sites and expended about 2.5 times more time shopping compared to shoppers visiting only legitimate sites.
The Growth of Online Grocery Shopping Shows No Signs of Slowing Down Shoppers just can't resist the convenience Half of all U.S. shoppers are buying groceries online at least occasionally, and COVID-19 was a key catalyst for this newly formed habit of online shoppers are using a smartphone 35% more often to plan and/or shop
(80%) missed the in-person shopping experience— especially Gen Z and millennials. Younger shoppers (Gen Zers: 33%, Millennials: 27%) were more likely than older shoppers (Gen Xers: 23%, Baby Boomers: 22%) to miss in-person shopping "a ton." That's great news for brick-and-mortar store owners who are just as eager to welcome shoppers back.
Sources: Bain & Company, Reuters, BCG, IBM Institute for Business Value, ComScore 16% US e-com growth during holidays 49% US tablet owners who shop using the device 30M E-shoppers China will add annually in foreseeable future 50% Shoppers in Brazil, Chile who e-shop for lower price 17% .
Starbucks Coffee, Decaf and Hot Tea 0 Cal/8 oz. serving AM Perk Up Granola Bars 190 Cal each Assorted Individual Yogurt Cups 50-150 Cal each Iced Tea 5 Cal/8 oz. serving Iced Water 0 Cal/8 oz. serving Starbucks Coffee, Decaf and Hot Tea 0 Cal/8 oz. serving Power Up Lunch Tomato and Cucumber Couscous Salad 120 Cal/3.75 oz. serving
Adventurer Club History 6 Introduction to Little Lamb 8 Little Lamb Checklist 9 Section 1 - Little Lamb Level 10 Adventurer Logo Adventurer Pledge / Law Adventurer Song Little Lamb Goals Little Lamb Curriculum Adventurer Awards Section 2 - Ch
ALBERT WOODFOX CIVIL ACTION (DOC# 72148) VERSUS BURL CAIN, ET AL NO. 06-789-D-M2 MAGISTRATE JUDGE’S REPORT This matter is before the Court on the original and amended petitions for writ of habeas corpus (R. Doc. 1 and 12) filed by petitioner, Albert Woodfox (“Woodfox”). The State has filed an answer and a memorandum in support of answer (R. Docs. 21 and 22), to which Woodfox has filed a .
