1 Top Management and Board of Directors; 2 INSIDER BUYING; 3 Peer Comparison & Ranking of TSCO Top Management and Board of Directors Top Management Top Management [Six top executives with tenure > 8 yrs] Name Designation Since Appointment Robert Welch Company Secretary 8 Yrs, 1 Mo Ken Murphy Chief Executive Officer, Executive Director - Gerry Murphy Independent Non-Executive Chairman - Imran Nawaz Chief Financial Officer, Executive Director - Guus Dekkers Chief Technology Officer - Ashwin Prasad Chief Product Officer - Board Of Directors Board Of Directors [Nine directors with tenure < 4 yrs] Name Designation Since Appointment Karen Whitworth Non-Executive Director 3 Yrs, 8 Mos Stewart Charles Gilliland Independent Non-Executive Director - Carolyn Fairbairn Independent Non-Executive Director - Bertrand Bodson Independent Non-Executive Director - Byron Grote Independent Non-Executive Director - Caroline Silver Independent Non-Executive Director - Thierry Garnier Independent Non-Executive Director - Melissa W. Bethell Independent Non-Executive Director - Alison Platt Non-Executive Director - INSIDER BUYING Insider buying Summary in the past 12 months Name No. of Shares Price, GBP Value, GBP Gerry Murphy [Independent Non-Executive Chairman] 50,000 2.8 138,138 Carolyn Fairbairn [Independent Non-Executive Director] 35,000 3.0 104,842 Ken Murphy [CEO] 588 3.0 1,735 Total 85,588 2.9 244,715 Peer Comparison & Ranking of TSCO PEER COMPARISON: TSCO IN INDICES Tesco is a constituent of the following indices. Its market capitalisation is $33 billion and accounts for 1.1% of the combined MCap of the FTSE 100 Index. Index Name MCap of Index ($ b) TSCO MCap as % of Index FTSE 100 Index 2,904 1.1 FTSE 350 Index 3,372 1.0 FTSE All-Share Index 3,461 1.0 GLOBAL PEER COMPARISON: TSCO - SIZE (all figures in $) In its Global Peer Group of 9 companies TSCO is ranked third (3) by Total Assets, fourth (4) by MCap, Revenue and fifth (5) by Net Profit. Name (Code) MCap Revenue Net Profit Total Assets Rank of TSCO 4 4 5 3 Tesco (TSCO) 33B 89.8B 1.6B 61.9B Walmart (WMT) 625.1B 648.1B 15.5B 252.4B Target (TGT) 72.5B 107.4B 4.1B 55.4B Japan Tobacco (2914) 57.7B 20B 3.4B 51.4B Ajinomoto (2802) 20B 10.2B 614.6M 12.5B Asahi Group (2502) 19.7B 19.5B 1.2B 37.3B Wilmar International (F34) 15.3B 67.2B 1.5B 61.8B Kirin Holdings (2503) 14.1B 15.1B 795M 20.2B Carrefour (CA) 12.4B 94.4B 1.8B 62.4B GLOBAL PEER COMPARISON: TSCO - RELATIVE VALUE INDICATORS In value terms, comparing relative value of its shares, TSCO is ranked + 4 out of 9 by Dividend Yield (%) [3.3] + 7 out of 9 by Price/Earnings per share [21.7] + 3 out of 9 by Price/Sales per share [0.4] + 6 out of 9 by Price/Book value per share [22.5] Name (Code) Currency Code Last Price Div Yld (%) P/E P/S P/Book Rank of TSCO by value 4 7 3 6 Tesco (TSCO) GBX 365.5 3.3 21.7 0.4 22.5 Walmart (WMT) USD 77.8 1.0 1.0 14.9 Target (TGT) USD 156.7 2.9 18.0 0.7 5.3 Japan Tobacco (2914) JPY 4,093 4.7 15.1 2.9 7.5 Ajinomoto (2802) JPY 5,358 1.4 32.0 2.0 4.4 Asahi Group (2502) JPY 5,532 2.3 17.1 1.0 Wilmar International (F34) SGD 3.2 5.3 10.1 0.2 Kirin Holdings (2503) JPY 2,182.5 3.2 15.7 0.9 2.7 Carrefour (CA) EUR 15.7 5.5 8.6 0.1 USD 1= 75.765884 Pence Sterling (GBX); 141.950995 Japanese Yen (JPY); 1.295 Singapore Dollar (SGD); 0.899586 Euro (EUR) BUYSELLSIGNALS FUNDAMENTALS VALUATION RANKING: Tesco vs United Kingdom Market Out of 1,066 stocks and 67 units in the United Kingdom Market, Tesco is ranked third(3) by Revenue, thirteenth(13) by Free Cash Flow, Fortieth(40) by Market Cap in $ and Sixty-third(63) by P/Sales. United Kingdom Avg TSCO TSCO Rank Revenue $ 3.2 B 90 B 3 Free Cash Flow (332.4 M) 2.8 B 13 Market Cap $ 5.4 B 33 B 40 P/Sales 1.4x 0.4x 63 Net Profit $ 296.4 M 1.6 B 64 P/Earnings/ Growth - 30.7x 83 Yield (%) 2.3 3.3 277 P/Earnings 14.7x 21.5x 341 Price/Net Tangible Assets 2.1x 22.3x 640 ROA (%) 1.5 3.8 662 EBITDA Margin% 14.8 3.4 700 Premium to 52-Wk Low (%) 87.4 47.2 815 Total Debt/Equity (the lower the better) 0.6x 1.3x 1052 Discount to 52-Wk High (%) 2.7 2.2 1054 Negative values are shown in brackets. MARKET SHARE Tesco has a position of market dominance in the Food & Drug Retailers sector. Tesco vs Food & Drug Retailers sector [Food & Drug Retailers sector Total in Brackets] Revenue of GBP68.2 billion ($90 billion)[64.5% of aggregate sector revenue of GBP105.7 billion; down from 64.7% in the previous year.] GLOBAL RANK [out of 46,921 stocks] AND RANK OF TESCO IN THE EUROPE REGION [out of 7,336 stocks] Description Value Global Rank In Eur Region MCap ($) 33B 626 126 Total Assets ($) 61.9B 890 194 Revenue ($) 89.8B 156 41 Net Profit ($) 1.6B 928 200 Return on Equity % 15.1 7,683 1,428 Net Profit Margin % 2.6 23,387 3,471 Price to Book 22.5 35,370 4,624 Price/Earnings 21.7 15,580 2,193 Yield % 3.3 9,271 1,581 PV1000 (1Year) $* 1,546 5,848 889 $* Change (1Year) % 50.0 6,171 915 * 1 year ago GBP 1 = $ 1.24 Sep 19, 2024: GBP 1 equals $ 1.32 RANK OF TESCO IN THE FTSE 100 INDEX [out of 93 stocks], IN THE UNITED KINGDOM MARKET [out of 1161 stocks] AND IN THE FOOD & DRUG RETAILERS SECTOR [out of 4 stocks] Description Value In FTSE 100 Index In United Kingdom Market In Food & drug retailers sector MCap (GBP) 25B 25 30 1 Total Assets (GBP) 47B 23 34 1 Revenue (GBP) 68.2B 2 5 1 Net Profit (GBP) 1.2B 27 34 1 Return on Equity % 15.1 35 239 2 Net Profit Margin % 2.6 79 665 2 Price to Book 22.3 55 987 4 Price/Earnings 21.5 47 471 1 Yield % 3.3 37 311 2 PV1000 (1Year) GBX 1,452 14 145 1 LONG-TERM FUNDAMENTAL RANKING: 3 OUT OF 5 [5 is best] Tesco is ranked number 1 out of 8 listed food & drug retailers companies in the United Kingdom with a market capitalization of GBP25 billion ($33 billion). It has a strong relative ROE of 15.1% and ROA of 3.8%. The company paid a dividend of GBX8.25 in the last twelve months. The dividend yield is high at 3.3%. Finally, its earnings growth in the past 12 months has been a comparatively high 70%. Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1. 1 Dividend; 2 Financials as Reported FY 2024 Dividend Dividend History In the past 5 years annual dividends have increased by GBX0.5 from GBX11.6 to GBX12.1. Based on a start date of 5 years ago, there has been two decline in dividends over the last 5 years. Date Paid Value (GBP) Type 16 May 2024 8.25 Final 12 Oct 2023 3.85 Interim Tr 12 Months 12.1 2022 - 2023 10.9 2021 - 2022 10.9 2020 - 2021 74.51 2019 - 2020 11.59 Financials as Reported FY 2024 Financials as reported (FY 2024 [year-ended 24 February 2024 ]) RESULTS OF OPERATIONS AND FINANCIAL CONDITION (In GBP Million, except per share data and shares outstanding) INCOME STATEMENT AS REPORTED (FY 2024 [year-ended 24 February 2024 ]) Description GBP Million GBP Million Feb 24, 2024 Dec 25, 2023 Change % Continuing operations Revenue from sale of goods and services 67,673 64,864 Up 4.3 Insurance revenue 514 458 Up 12.2 Revenue 68,187 65,322 Up 4.4 Cost of sales -62,836 -61,516 Deterioration 2.1 Insurance service expenses -454 -408 Deterioration 11.3 Net expenses from reinsurance contracts held -48 -37 Deterioration 29.7 Gross profit/(loss) 4,849 3,361 Up 44.3 Administrative expenses -2,028 -1,951 Deterioration 3.9 Operating profit/(loss) 2,821 1,410 Up 100.1 Share of post-tax profits of joint ventures and associates 6 8 Down 25.0 Finance income 267 87 Up 206.9 Finance costs -805 -623 Deterioration 29.2 Profit/(loss) before tax from continuing operations 2,289 882 Up 159.5 Taxation -525 -224 Deterioration 134.4 Profit/(loss) for the year from continuing operations 1,764 658 Up 168.1 Discontinued operations Profit/(loss) for the year from discontinued operations -572 78 Deterioration Profit/(loss) for the year 1,192 736 Up 62.0 Attributable to: Owners of the parent 1,188 737 Up 61.2 Non-controlling interests 4 -1 Recovery 1,192 736 Up 62.0 Earnings per share from continuing and discontinued operations Basic 17.0 GBX 10.0 GBX Up 70.0 Diluted 17.0 GBX 10.0 GBX Up 70.0 Earnings per share from continuing operations Basic 25.0 GBX 9.0 GBX Up 177.8 Diluted 25.0 GBX 9.0 GBX Up 177.8 Weighted average number of ordinary share Basic 7,097,000,000 7,415,000,000 Down 4.3 Weighted average number of ordinary share Diluted 7,176,000,000 7,482,000,000 Down 4.1 BALANCE SHEET AS REPORTED (FY 2024 [year-ended 24 February 2024 ]) Description GBP Million GBP Million Feb 24, 2024 Dec 25, 2023 Change % Non-current assets Goodwill and other intangible assets 5,066 5,375 Down 5.7 Property plant and equipment 17,221 16,862 Up 2.1 Right of use assets 5,478 5,500 Down 0.4 Investment property 24 24 Steady Investments in joint ventures and associates 102 93 Up 9.7 Other investments 1,546 1,339 Up 15.5 Trade and other receivables 36 79 Down 54.4 Loans and advances to customers 3,029 Reinsurance contract assets 125 135 Down 7.4 Derivative financial instruments 781 873 Down 10.5 Post-employment benefit surplus 22 6 Up 266.7 Deferred tax assets 32 84 Down 61.9 30,433 33,399 Down 8.9 Current assets Other investments 206 353 Down 41.6 Inventories 2,635 2,510 Up 5.0 Trade and other receivables 1,349 1,235 Up 9.2 Loans and advances to customers 3,948 Derivative financial instruments 55 57 Down 3.5 Current tax assets 110 63 Up 74.6 Short-term investments 2,128 1,628 Up 30.7 Cash and cash equivalents 2,340 2,465 Down 5.1 8,823 12,259 Down 28.0 Assets of the disposal group and non-current assets classified as held for sale 7,783 210 Up 3,606.2 16,606 12,469 Up 33.2 Current liabilities Trade and other payables -10,264 -9,762 Deterioration 5.1 Borrowings -1,536 -1,770 Improved 13.2 Lease liabilities -584 -595 Improved 1.8 Provisions -306 -366 Improved 16.4 Insurance contract liabilities -526 -501 Deterioration 5.0 Customer deposits and deposits from banks -108 -4,485 Improved 97.6 Derivative financial instruments -25 -99 Improved 74.7 Current tax liabilities -1 -18 Improved 94.4 -13,350 -17,596 Improved 24.1 Liabilities of the disposal group classified as held for sale -7,122 -14 Deterioration 50,771.4 -20,472 -17,610 Deterioration 16.3 Net current liabilities -3,866 -5,141 Improved 24.8 Non-current liabilities Trade and other payables -39 -54 Improved 27.8 Borrowings -5,683 -5,581 Deterioration 1.8 Lease liabilities -7,038 -7,132 Improved 1.3 Provisions -175 -194 Improved 9.8 Customer deposits and deposits from banks -800 -2,265 Improved 64.7 Derivative financial instruments -241 -288 Improved 16.3 Post-employment benefit deficit -657 -400 Deterioration 64.2 Deferred tax liabilities -269 -119 Deterioration 126.1 -14,902 -16,033 Improved 7.1 Net assets 11,665 12,225 Down 4.6 Equity Share capital 445 463 Down 3.9 Share premium 5,165 5,165 Steady Other reserves 3,131 3,139 Down 0.3 Retained earnings 2,930 3,469 Down 15.5 Equity attributable to owners of the parent 11,671 12,236 Down 4.6 Non-controlling interests -6 -11 Improved 45.5 Total equity 11,665 12,225 Down 4.6 CASH FLOW AS REPORTED (FY 2024 [year-ended 24 February 2024 ]) Description GBP Million GBP Million Feb 24, 2024 Dec 25, 2023 Change % Cash flows generated from/(used in) operating activities Operating profit/(loss) of continuing operations 2,821 1,410 Up 100.1 Operating profit/(loss) of discontinued operations -659 98 Deterioration Depreciation and amortisation 1,723 1,700 Up 1.4 (Profit)/loss arising on sale of property plant and equipment investment property intangible assets assets classified as held for sale and early termination of leases -53 -76 Improved 30.3 (Profit)/loss arising from sale of other investments 3 (Profit)/loss arising on sale of joint ventures and associates -9 (Profit)/loss arising on sale of subsidiaries -12 Net impairment (reversal)/loss on property plant and equipment right of use assets intangible assets and investment property -28 982 Deterioration Net remeasurement loss on non-current assets held for sale 720 23 Up 3,030.4 Defined benefit pension scheme payments -29 -23 Deterioration 26.1 Share-based payments 78 59 Up 32.2 Fair value movements included in operating profit/(loss) 71 70 Up 1.4 Retail (increase)/decrease in inventories -150 -147 Deterioration 2.0 Retail (increase)/decrease in trade and other receivables -118 -54 Deterioration 118.5 Retail increase/(decrease) in trade and other payables 714 643 Up 11.0 Retail increase/(decrease) in provisions -72 75 Deterioration Retail (increase)/decrease in working capital 374 517 Down 27.7 Tesco Bank (increase)/decrease in loans and advances to customers -714 -690 Deterioration 3.5 Tesco Bank (increase)/decrease in trade reinsurance and other receivables -9 83 Deterioration Tesco Bank increase/(decrease) in customer and bank deposits trade insurance liabilities and other payables 584 348 Up 67.8 Tesco Bank increase/(decrease) in provisions 28 -7 Recovery Tesco Bank (increase)/decrease in working capital -111 -266 Improved 58.3 Cash generated from/(used in) operations 4,886 4,497 Up 8.7 Interest paid -824 -652 Deterioration 26.4 Corporation tax paid -223 -123 Deterioration 81.3 Net cash generated from/(used in) operating activities 3,839 3,722 Up 3.1 Cash flows generated from/(used in) investing activities Proceeds from sale of property plant and equipment investment property intangible assets and assets classified as held for sale 55 342 Down 83.9 Purchase of property plant and equipment investment property and other long-term assets -1,108 -971 Deterioration 14.1 Purchase of intangible assets -278 -279 Improved 0.4 Disposal of subsidiaries net of cash disposed 15 Acquisition of subsidiaries net of cash acquired -17 -71 Improved 76.1 Proceeds from sale of joint ventures and associates 9 Increase in loans to joint ventures and associates -61 -1 Deterioration 6,000.0 Investments in joint ventures and associates -9 -10 Improved 10.0 Net (investments in)/proceeds from sale of short-term investments -507 451 Deterioration Proceeds from sale of other investments 352 230 Up 53.0 Purchase of other investments -390 -529 Improved 26.3 Dividends received from joint ventures and associates 9 14 Down 35.7 Interest received 249 70 Up 255.7 Cash inflows from derivative financial instruments 5 54 Down 90.7 Cash outflows from derivative financial instruments -24 -6 Deterioration 300.0 Net cash generated from/(used in) investing activities -1,700 -706 Deterioration 140.8 Cash flows generated from/(used in) financing activities Own shares purchased for cancellation -752 -781 Improved 3.7 Own shares purchased for share schemes -93 -86 Deterioration 8.1 Repayment of capital element of obligations under leases -627 -593 Deterioration 5.7 Cash outflows exceeding the incremental increase in assets in a property buyback -62 -21 Deterioration 195.2 Increase in borrowings 1,232 Repayment of borrowings -775 -709 Deterioration 9.3 Cash inflows from derivative financial instruments 98 232 Down 57.8 Cash outflows from derivative financial instruments -102 -371 Improved 72.5 Dividends paid to equity owners -778 -859 Improved 9.4 Net cash generated from/(used in) financing activities -1,859 -3,188 Improved 41.7 Net increase/(decrease) in cash and cash equivalents 280 -172 Recovery Cash and cash equivalents at the beginning of the year 1,565 1,771 Down 11.6 Effect of foreign exchange rate changes 29 -34 Recovery Cash and cash equivalents including cash held in the disposal group at the end of the year 1,874 1,565 Up 19.7 Less: Cash held in the disposal group -346 Cash and cash equivalents at the end of the year 1,528 1,565 Down 2.4