Group income statement Before exceptional 52 weeks ended 24 February 2018 Exceptional items Before exceptional 52...

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Group income statement Before exceptional 52 weeks ended 24 February 2018 Exceptional items Before exceptional 52 weeks ended 25 February 2017 Exceptional Notes items Em (Note 4) Em Total m items m items (Note 4) Em Total m Continuing operations Revenue Cost of sales 2 57,491 57,491 55,917 55,917 (54,092) (49) (54,141) (52,899) (116) (53,015) Gross profit/(loss) 3,399 (49) 3,350 3,018 (116) 2,902 Administrative expenses (1,786) 153 (1,633) (1,734) (261) (1,995) Profits/(losses) arising on property-related items 31 89 120 (4) 114 110 Operating profit/(loss) 1,644 193 1,837 1,280 (263) 1,017 Share of post-tax profits/(losses) of joint ventures and associates Finance income Finance costs 355 13 (6) (6) (30) (77) (107) 98 98 109 - 109 (593) (38) (631) (630) (244) (874) Profit/(loss) before tax 1,143 155 1,298 729 (584) 145 Taxation 6 (286) (20) (306) (185) 98 (87) Profit/(loss) for the year from continuing operations 857 135 992 544 (486) 58 Discontinued operations Profit/(loss) for the year from discontinued operations 7 216 216 Profit/(loss) for the year (37) (75) (112) 857 351 1,208 507 (561) (54) 151 Attributable to: Owners of the parent Non-controlling interests 857 349 1,206 515 (555) (40) 2 2 (8) (6) (14) 857 351 1,208 507 (561) (54) Earnings/(losses) per share from continuing and discontinued operations Basic 9 9 14.77p 14.72p (0.49)p (0.491p Diluted Earnings/(losses) per share from continuing operations 9 12.12p 0.81p Basic 9 12.08p 0.81p Diluted 2014 2015 2016 2017 2018 Financial statistics (Em) Sales UK & ROI Central Europe Asia Tesco Bank Group sales Revenue UK & ROI Central Europe Asia Tesco Bank Group revenue Operating profit/(loss) before exceptional items UK & ROI Central Europe Asia 38,228 37,189 37,692 38,650 6,186 5,268 5,977 6,343 4,492 4,447 5,186 4,947 1,003 947 955 1,012 1,051 49,853 47,859 49,867 50,991 45,062 43,080 43,524 44,908 6,424 5,451 6,195 6,585 4,492 4,447 5,186 4,947 1,003 947 955 1,012 1,051 63,557 56,925 53,933 55,917 57,491 498 503 803 1,053 (4) 102 58 119 258 218 262 299 Tesco Bank Operating profit margin before exceptional items 188 162 157 173 Group operating profit/(loss) before exceptional Itemsc 940 985 1,280 1,644 1.7% 1.8% 2.3% 2.9% Operating profit/(loss) UK & ROI Central Europe Asia (5,334) 597 519 1,199 (666) 111 190 212 97 203 231 277 Tesco Bank 153 161 77 149 Group operating profit/(loss) 2,631 (5,750) 1,072 1,017 1,837 Share of post-tax profits/(losses) of joint ventures and associates 60 (13) (21) (107) (6) Net finance costs (432) (571) (849) (765) (533) Profit/(loss) before tax 2,259 (6,334) 202 145 1,298 Taxation (347) 670 54 (87) (306) Profit/(loss) for the year from continuing operations 1,912 (5,664) 256 58 992 Discontinued operations (942) (102) (127) (112) 216 Profit/(loss) for the year 970 (5,766) 129 (54) 1,208 Attributable to: Owners of the parent 974 (5,741) 138 (40) 1,206 Non-controlling interests (4) (25) (9) (14) 2 Profit before tax before exceptional items, net pension finance costs and fair value remeasurements on financial instruments 516 509 781 1,282 Other financial statistics Diluted earnings/(losses) per share - continuing operations (69.56)p 3.22p 0.81p 12.08p Diluted earnings per share - continuing operations before exceptional items, net pension finance costs and fair value remeasurements on financial instruments 5.70p 5.79p 7.30p 11.88p Dividend per share 14.76p 1.16p 3.00p Cash generated from Retail operating activities (m) 4,607 1,860 2,581 2,278 2.773 Return on capital employed (ROCE) 13.6% 4.0% 6.2% 8.1% 10.9% Total shareholder return 3.7% (9.51% (11.8)% (7.51% 8.7% Net debt (m) 6,597 8,481 5,110 3,729 2,625 Discounted operating lease commitments - continuing operations (m) 9,419 9.353 7,814 7.440 6,931 Pension deficit, net of deferred tax - Group (m) 2,559 3,885 2.612 5,504 2,728 Total Indebtedness (m) < 18,575 21,719 15,536 16,673 12,284 Enterprise Value (m) 33,597 28,415 20,101 19,262 19,452 Group Retail statistics 0.010 0300 Tesco Bank Year-on-year 2017/18 2016/17 change Revenue 1,051m 1,012m 3.9% Operating profit before 173m 157m 10.2% exceptional items Operating profit 149m 77m 93.5% Lending to customers 11,522m 9.961m 15.7% Customer deposits 9,245m 8,463m 9.2% Net interest margin 3.9% 4.0% (0.1)% Risk asset ratio 19.3% 20.0% (0.71% items items Total items items 52 weeks ended 25 February 2017 m m m Em Operating profit/(loss) of continuing operations Operating profit/(loss) of discontinued operations Depreciation and amortisation ATM net income 1,123 (183) 940 157 (15) (102) (117) 1,172 14 1,186 95 (43) - (43) 43 (Profit)/loss arising on sale of property, plant and equipment and intangible assets (Profit)/loss arising on sale of subsidiaries and other investments (Profit)/loss arising on sale of joint ventures and associates Impairment loss on goodwill Net impairment loss/(reversal) on other investments Net impairment loss/(reversal) on property, plant and equipment. software and other intangible assets and investment property Adjustment for non-cash element of pensions charge 54 (134) (80) F: Total Total Em m (80) 77 1,017 (117) 118 1,304 43 2 2 (78) 7 7 (4) (5) (5) - 46 46 (12) (12) (10) 5 (5) ,,, (4) 3 (5) (12) (5) 7 7 7 Additional contribution into pension schemes (248) Share-based payments 14 ... (248) (248) 14 1 1 15 Tesco Bank fair value movements included in operating profit 96 2 98 98 Cash flows generated from operations excluding working capital 2,044 (354) 1,690 390 (55) 335 2,025 (Increase)/decrease in working capital 379 209 588 (77) 22 (55) 533 Cash generated from/(used in) operations" 2,423 (145) 2,278 313 (33) 280 2,558 Interest paid (518) (518) (4) (4) (522) Corporation tax (paid)/received (64) (64) 17 17 (47) Net cash generated from/(used in) operating activities 1,841 (145) 1,696 326 (33) 293 1,989 Proceeds from sale of property, plant and equipment. investment property, intangible assets and non-current assets classified as held for sale 19 490 509 3 3 512 Purchase of property, plant and equipment, investment property and non-current assets classified as held for sale -store buy backs (365) (365) (365) Purchase of property, plant and equipment, investment property and non-current assets classified as held for sale (834) (834) (6) (6) (840) - other capital expenditure Purchase of intangible assets (129) (129) Disposal of subsidiaries, net of cash disposed 205 205 Acquisition of subsidiaries, net of cash acquired (25) (25) Proceeds from sale of joint ventures and associates Investments in joint ventures and associates Net (investments in)/proceeds from sale of other investments 111 111 Dividends received from joint ventures and associates Dividends received from Tesco Bank 28 28 50 50 g (40) (40) (169) 205 (25) 30 30 141 28 (50) (50) Interest received 41 41 41 APM: Free cash flow 942 345 1,287 263 (33) 230 1,517 Net (increase)/decrease in loans to joint ventures and associates Net (investments in\/proceeds from sale of short-term investments Net cash generated from/(used in) investing activities 15 15 15 736 736 736 (148) 490 342 (63) (63) 279 Proceeds from issue of ordinary share capital 1 1 1 Increase in borrowings 185 185 185 Repayment of borrowings (2,036) (2,036) (2,036) Net cash flows from derivative financial instruments Repayment of obligations under finance leases Dividends paid to equity owners 475 475 475 (12) (12) (12) Net cash generated from/(used in) financing activities (1,387) (1,387) (1,387) Intra-Group funding and intercompany transactions (5) (5) 5 5 Central Europe Year-on-year Year-on-year change change (Constant (Actual On a continuing exchange exchange operations basis 2017/18 2016/17 rates) rates) Sales 6,343m 5,977m (1.6)% 6.1% (exc. VAT, exc. fuel) Like-for-like sales 0.3% 0.9% (exc. VAT, exc. fuel) Revenue 6,585m 6,195m (exc. VAT, Inc. fuel) Revenue includes: fuel 242m 218m Operating 119m 58m 89.7% 105.2% profit before exceptional items Operating profit 1.81% 0.94% 86bp 87bp margin before exceptional items Operating profit 212m 190m 52 weeks ended 24 February 2018 Operating profit/(loss) of continuing operations Operating profit/(loss) of discontinued operations Depreciation and amortisation ATM net income (Profit)/loss arising on sale of property, plant and equipment and intangible assets (Profit)/loss arising on sale of subsidiaries and other investments (Profit)/loss arising on sale of joint ventures and associates Net impairment loss/reversal) on other investments Net impairment loss/(reversal) on property, plant and equipment. software and other intangible assets and investment property Adjustment for non-cash element of pensions charge Additional contribution into pension schemes Share-based payments 1,212 8 4 (245) 109 m Em m m Em m 1,471 217 1,688 173 (24) 149 1,837 1,212 83 83 1,295 (37) 37 37 (58) (66) (66) (162) (165) (16) (23) (22) (159) (167) (165) (23) (22) (167) 4 4 (245) (245) 109 4 113 Tesco Bank fair value movements included in operating profit 156 156 156 Cash flows generated from operations excluding working capital 2,466 (178) 2,288 453 (Increase/decrease in working capital 499 (14) 485 110 Cash generated from/(used in) operations* 2,965 (192) 2,773 563 Interest paid (347) (347) (4) Corporation tax (paid)/received (131) (131) (45) Net cash generated from/lused in) operating activities 2,487 (192) 2,295 514 ' 429 2,717 107 592 (27) 536 3,309 (4) (351) (45) (176) (27) 487 2,782 Proceeds from sale of property, plant and equipment. investment property, intangible assets and non-current assets classified as held for sale 175 78 253 253 Purchase of property, plant and equipment, investment property and non-current assets classified as held for sale -store buy backs (204) (189) (393) (393) (1,038) (1,038) 8 (9) (1,047) Purchase of property, plant and equipment, investment property and non-current assets classified as held for sale - other capital expenditure Purchase of intangible assets Disposal of subsidiaries, net of cash disposed Acquisition of subsidiaries, net of cash acquired Proceeds from sale of joint ventures and associates Investments in joint ventures and associates Net (investments inl/proceeds from sale of other investments Dividends received from joint ventures and associates Dividends received from Tesco Bank @#88 (152) (152) (45) 66 66 (27) 19 23 (6) 196 230 26 50 (50) Interest received 50 3' (45) (197) 66 (27) 23 (15) (15) (21) 6 236 - 26 (50) 50 APM: Free cash flow 1,399 (22) 1,377 401 (27) 374 1,751 Net (increase/decrease in loans to joint ventures and associates Net (investments inl/proceeds from sale of short-term investments Net cash generated from/lused in) investing activities 1,697 1,697 1,697 609 170 779 (113) (113) 666 Proceeds from issue of ordinary share capital 11 11 11 Increase in borrowings Repayment of borrowings Net cash flows from derivative financial instruments Repayment of obligations under finance leases Dividends paid to equity holders Net cash generated from/(used in) financing activities ntra-Group funding and Intercompany transactions 13 13 300 300 313 (3,571) (3,571) (150) (150) (3,721) 253 253 253 (10) (10) (10) (82) (82) (82) (3,386) (3,386) 150 150 (3,236) 9 - 9 (9) - (9) Net Increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Effect of foreign exchange rate changes Cash and cash equivalents including cash held in disposal (281) (22) (303) 542 (27) 515 3,043 789 212 3,832 15 15 2,755 1,304 4,059 Income statement The segment results and the reconciliation of the segment measures to the respective statutory items included in the Group income statement are as follows: 52 weeks ended 24 February 2018 At constant exchange rates UK & ROI m Central Europe Tesco Asia Bank m m m Total at constant exchange m Total Foreign exchange at actual exchange m Em Continuing operations Group sales 38,522 5,884 4,692 1,051 50,149 842 50,991 Revenue 44,775 6,109 4,692 1,051 56,627 864 57,491 Operating profit/(loss) before exceptional items* Exceptional items 1,046 110 282 173 1,611 33 1,644 141 88 (20) (24) 185 8 193 Operating profit/(loss) 1,187 198 262 149 1,796 41 1,837 Operating margin 2.3% 1.8% 6.0% 16.5% 2.8% 2.9% 52 weeks ended 24 February 2018 At actual exchange rates Continuing operations Group sales Revenue Operating profit/(loss) before exceptional items* Exceptional items Operating profit/(loss) Operating margin Share of post-tax profits/(losses) of joint ventures and associates Finance income Finance costs Profit/(loss) before tax 52 weeks ended 25 February 2017 At actual exchange rates Continuing operations Group sales Revenue Operating profit/(loss) before exceptional Items* Exceptional items Operating profit/(loss) Operating margin Share of post-tax profits/(losses) of joint ventures and associates Finance income Finance costs Profit/(loss) before tax Total Central Tesco at actual UK & ROI m Europe Em Asia m Bank m exchange Em 38,650 6,343 4,947 1,051 50,991 44,908 6,585 4,947 1,051 57,491 1,053 119 299 173 1,644 146 93 (22) (24) 193 1,199 212 277 149 1,837 2.3% 1.8% 6.0% 16.5% 2.9% (6) 98 (631) 1,298 UK & ROI m Central Europe Tesco Asia Bank Total at actual exchange Em m m Em 37,692 5,977 5,186 1,012 49,867 43,524 6,195 5,186 1,012 55,917 803 58 262 157 1,280 (284) 132 (31) (80) (263) 519 190 231 77 1,017 1.8% 0.9% 5.1% 15.5% 2.3% (107) 109 (874) 145 * Intercompany recharges totalling nil (2017: 2m) between continuing operations and the Turkey discontinued operations have been eliminated. Group results 2017/18 52 weeks ended 24 February 2018 Year-on-year Year-on-year change change (Constant (Actual On a continuing exchange exchange operations basis 2017/18 Group sales 50,991m 2016/17 49,867m rates) rates) 0.6% 2.3% (exc. VAT, exc. fuel) Fuel 6,500m 6,050m 7.1% 7.4% Revenue 57,491m 55,917m 1.3% 2.8% (exc. VAT, Inc. fuel) Group operating 1,644m 1,280m 25.9% 28.4% profit before exceptional Items UK & ROI 1,053m 803m 30.3% 31.1% Central Europe 119m 58m 89.7% 105.2% Asia 299m 262m 7.6% 14.1% Tesco Bank 173m 157m 10.2% 10.2% Include exceptional 193m (263)m items Group operating profit 1,837m 1,017m 76.6% 80.6% Group profit before tax 1,282m 781m 64.1% before exceptional items, IAS 19 finance costs and IAS 39 fair value remeasurements Group statutory 1,298m 145m 795.2% profit before tax Diluted EPS before 11.88p 7.30p exceptional items. IAS 19 finance costs and IAS 39 fair value remeasurements Diluted EPS 12.08p 0.81p Basic EPS 12.12p 0.81p Dividend per share 3.0p Capex 1.1bn 1.2bn Net debt (2.6)bn (3.7)bn Cash generated from 2.8bn 2.3bn retail operations Segmental results UK & ROI Year-on-year Year-on-year change change (Constant (Actual Sales Like-for-like sales On a continuing operations basis (exc. VAT, exc. fuel) (exc. VAT, exc. fuel) exchange exchange 2017/18 2016/17 rates) rates) 38,650m 37,692m 2.2% 2.5% 2.3% 0.9% Revenue 44,908m 43,524m (exc. VAT, Inc. fuel) Revenue includes: fuel 6,258m 5,832m Operating 1,053m 803m 30.3% 31.1% profit before exceptional items Operating profit 2.34% 1.84% 49bp 50bp margin before exceptional items Operating profit 1,199m 519m Group income statement Before exceptional 52 weeks ended 24 February 2018 Exceptional items Before exceptional 52 weeks ended 25 February 2017 Exceptional Notes items Em (Note 4) Em Total m items m items (Note 4) Em Total m Continuing operations Revenue Cost of sales 2 57,491 57,491 55,917 55,917 (54,092) (49) (54,141) (52,899) (116) (53,015) Gross profit/(loss) 3,399 (49) 3,350 3,018 (116) 2,902 Administrative expenses (1,786) 153 (1,633) (1,734) (261) (1,995) Profits/(losses) arising on property-related items 31 89 120 (4) 114 110 Operating profit/(loss) 1,644 193 1,837 1,280 (263) 1,017 Share of post-tax profits/(losses) of joint ventures and associates Finance income Finance costs 355 13 (6) (6) (30) (77) (107) 98 98 109 - 109 (593) (38) (631) (630) (244) (874) Profit/(loss) before tax 1,143 155 1,298 729 (584) 145 Taxation 6 (286) (20) (306) (185) 98 (87) Profit/(loss) for the year from continuing operations 857 135 992 544 (486) 58 Discontinued operations Profit/(loss) for the year from discontinued operations 7 216 216 Profit/(loss) for the year (37) (75) (112) 857 351 1,208 507 (561) (54) 151 Attributable to: Owners of the parent Non-controlling interests 857 349 1,206 515 (555) (40) 2 2 (8) (6) (14) 857 351 1,208 507 (561) (54) Earnings/(losses) per share from continuing and discontinued operations Basic 9 9 14.77p 14.72p (0.49)p (0.491p Diluted Earnings/(losses) per share from continuing operations 9 12.12p 0.81p Basic 9 12.08p 0.81p Diluted 2014 2015 2016 2017 2018 Financial statistics (Em) Sales UK & ROI Central Europe Asia Tesco Bank Group sales Revenue UK & ROI Central Europe Asia Tesco Bank Group revenue Operating profit/(loss) before exceptional items UK & ROI Central Europe Asia 38,228 37,189 37,692 38,650 6,186 5,268 5,977 6,343 4,492 4,447 5,186 4,947 1,003 947 955 1,012 1,051 49,853 47,859 49,867 50,991 45,062 43,080 43,524 44,908 6,424 5,451 6,195 6,585 4,492 4,447 5,186 4,947 1,003 947 955 1,012 1,051 63,557 56,925 53,933 55,917 57,491 498 503 803 1,053 (4) 102 58 119 258 218 262 299 Tesco Bank Operating profit margin before exceptional items 188 162 157 173 Group operating profit/(loss) before exceptional Itemsc 940 985 1,280 1,644 1.7% 1.8% 2.3% 2.9% Operating profit/(loss) UK & ROI Central Europe Asia (5,334) 597 519 1,199 (666) 111 190 212 97 203 231 277 Tesco Bank 153 161 77 149 Group operating profit/(loss) 2,631 (5,750) 1,072 1,017 1,837 Share of post-tax profits/(losses) of joint ventures and associates 60 (13) (21) (107) (6) Net finance costs (432) (571) (849) (765) (533) Profit/(loss) before tax 2,259 (6,334) 202 145 1,298 Taxation (347) 670 54 (87) (306) Profit/(loss) for the year from continuing operations 1,912 (5,664) 256 58 992 Discontinued operations (942) (102) (127) (112) 216 Profit/(loss) for the year 970 (5,766) 129 (54) 1,208 Attributable to: Owners of the parent 974 (5,741) 138 (40) 1,206 Non-controlling interests (4) (25) (9) (14) 2 Profit before tax before exceptional items, net pension finance costs and fair value remeasurements on financial instruments 516 509 781 1,282 Other financial statistics Diluted earnings/(losses) per share - continuing operations (69.56)p 3.22p 0.81p 12.08p Diluted earnings per share - continuing operations before exceptional items, net pension finance costs and fair value remeasurements on financial instruments 5.70p 5.79p 7.30p 11.88p Dividend per share 14.76p 1.16p 3.00p Cash generated from Retail operating activities (m) 4,607 1,860 2,581 2,278 2.773 Return on capital employed (ROCE) 13.6% 4.0% 6.2% 8.1% 10.9% Total shareholder return 3.7% (9.51% (11.8)% (7.51% 8.7% Net debt (m) 6,597 8,481 5,110 3,729 2,625 Discounted operating lease commitments - continuing operations (m) 9,419 9.353 7,814 7.440 6,931 Pension deficit, net of deferred tax - Group (m) 2,559 3,885 2.612 5,504 2,728 Total Indebtedness (m) < 18,575 21,719 15,536 16,673 12,284 Enterprise Value (m) 33,597 28,415 20,101 19,262 19,452 Group Retail statistics 0.010 0300 Tesco Bank Year-on-year 2017/18 2016/17 change Revenue 1,051m 1,012m 3.9% Operating profit before 173m 157m 10.2% exceptional items Operating profit 149m 77m 93.5% Lending to customers 11,522m 9.961m 15.7% Customer deposits 9,245m 8,463m 9.2% Net interest margin 3.9% 4.0% (0.1)% Risk asset ratio 19.3% 20.0% (0.71% items items Total items items 52 weeks ended 25 February 2017 m m m Em Operating profit/(loss) of continuing operations Operating profit/(loss) of discontinued operations Depreciation and amortisation ATM net income 1,123 (183) 940 157 (15) (102) (117) 1,172 14 1,186 95 (43) - (43) 43 (Profit)/loss arising on sale of property, plant and equipment and intangible assets (Profit)/loss arising on sale of subsidiaries and other investments (Profit)/loss arising on sale of joint ventures and associates Impairment loss on goodwill Net impairment loss/(reversal) on other investments Net impairment loss/(reversal) on property, plant and equipment. software and other intangible assets and investment property Adjustment for non-cash element of pensions charge 54 (134) (80) F: Total Total Em m (80) 77 1,017 (117) 118 1,304 43 2 2 (78) 7 7 (4) (5) (5) - 46 46 (12) (12) (10) 5 (5) ,,, (4) 3 (5) (12) (5) 7 7 7 Additional contribution into pension schemes (248) Share-based payments 14 ... (248) (248) 14 1 1 15 Tesco Bank fair value movements included in operating profit 96 2 98 98 Cash flows generated from operations excluding working capital 2,044 (354) 1,690 390 (55) 335 2,025 (Increase)/decrease in working capital 379 209 588 (77) 22 (55) 533 Cash generated from/(used in) operations" 2,423 (145) 2,278 313 (33) 280 2,558 Interest paid (518) (518) (4) (4) (522) Corporation tax (paid)/received (64) (64) 17 17 (47) Net cash generated from/(used in) operating activities 1,841 (145) 1,696 326 (33) 293 1,989 Proceeds from sale of property, plant and equipment. investment property, intangible assets and non-current assets classified as held for sale 19 490 509 3 3 512 Purchase of property, plant and equipment, investment property and non-current assets classified as held for sale -store buy backs (365) (365) (365) Purchase of property, plant and equipment, investment property and non-current assets classified as held for sale (834) (834) (6) (6) (840) - other capital expenditure Purchase of intangible assets (129) (129) Disposal of subsidiaries, net of cash disposed 205 205 Acquisition of subsidiaries, net of cash acquired (25) (25) Proceeds from sale of joint ventures and associates Investments in joint ventures and associates Net (investments in)/proceeds from sale of other investments 111 111 Dividends received from joint ventures and associates Dividends received from Tesco Bank 28 28 50 50 g (40) (40) (169) 205 (25) 30 30 141 28 (50) (50) Interest received 41 41 41 APM: Free cash flow 942 345 1,287 263 (33) 230 1,517 Net (increase)/decrease in loans to joint ventures and associates Net (investments in\/proceeds from sale of short-term investments Net cash generated from/(used in) investing activities 15 15 15 736 736 736 (148) 490 342 (63) (63) 279 Proceeds from issue of ordinary share capital 1 1 1 Increase in borrowings 185 185 185 Repayment of borrowings (2,036) (2,036) (2,036) Net cash flows from derivative financial instruments Repayment of obligations under finance leases Dividends paid to equity owners 475 475 475 (12) (12) (12) Net cash generated from/(used in) financing activities (1,387) (1,387) (1,387) Intra-Group funding and intercompany transactions (5) (5) 5 5 Central Europe Year-on-year Year-on-year change change (Constant (Actual On a continuing exchange exchange operations basis 2017/18 2016/17 rates) rates) Sales 6,343m 5,977m (1.6)% 6.1% (exc. VAT, exc. fuel) Like-for-like sales 0.3% 0.9% (exc. VAT, exc. fuel) Revenue 6,585m 6,195m (exc. VAT, Inc. fuel) Revenue includes: fuel 242m 218m Operating 119m 58m 89.7% 105.2% profit before exceptional items Operating profit 1.81% 0.94% 86bp 87bp margin before exceptional items Operating profit 212m 190m 52 weeks ended 24 February 2018 Operating profit/(loss) of continuing operations Operating profit/(loss) of discontinued operations Depreciation and amortisation ATM net income (Profit)/loss arising on sale of property, plant and equipment and intangible assets (Profit)/loss arising on sale of subsidiaries and other investments (Profit)/loss arising on sale of joint ventures and associates Net impairment loss/reversal) on other investments Net impairment loss/(reversal) on property, plant and equipment. software and other intangible assets and investment property Adjustment for non-cash element of pensions charge Additional contribution into pension schemes Share-based payments 1,212 8 4 (245) 109 m Em m m Em m 1,471 217 1,688 173 (24) 149 1,837 1,212 83 83 1,295 (37) 37 37 (58) (66) (66) (162) (165) (16) (23) (22) (159) (167) (165) (23) (22) (167) 4 4 (245) (245) 109 4 113 Tesco Bank fair value movements included in operating profit 156 156 156 Cash flows generated from operations excluding working capital 2,466 (178) 2,288 453 (Increase/decrease in working capital 499 (14) 485 110 Cash generated from/(used in) operations* 2,965 (192) 2,773 563 Interest paid (347) (347) (4) Corporation tax (paid)/received (131) (131) (45) Net cash generated from/lused in) operating activities 2,487 (192) 2,295 514 ' 429 2,717 107 592 (27) 536 3,309 (4) (351) (45) (176) (27) 487 2,782 Proceeds from sale of property, plant and equipment. investment property, intangible assets and non-current assets classified as held for sale 175 78 253 253 Purchase of property, plant and equipment, investment property and non-current assets classified as held for sale -store buy backs (204) (189) (393) (393) (1,038) (1,038) 8 (9) (1,047) Purchase of property, plant and equipment, investment property and non-current assets classified as held for sale - other capital expenditure Purchase of intangible assets Disposal of subsidiaries, net of cash disposed Acquisition of subsidiaries, net of cash acquired Proceeds from sale of joint ventures and associates Investments in joint ventures and associates Net (investments inl/proceeds from sale of other investments Dividends received from joint ventures and associates Dividends received from Tesco Bank @#88 (152) (152) (45) 66 66 (27) 19 23 (6) 196 230 26 50 (50) Interest received 50 3' (45) (197) 66 (27) 23 (15) (15) (21) 6 236 - 26 (50) 50 APM: Free cash flow 1,399 (22) 1,377 401 (27) 374 1,751 Net (increase/decrease in loans to joint ventures and associates Net (investments inl/proceeds from sale of short-term investments Net cash generated from/lused in) investing activities 1,697 1,697 1,697 609 170 779 (113) (113) 666 Proceeds from issue of ordinary share capital 11 11 11 Increase in borrowings Repayment of borrowings Net cash flows from derivative financial instruments Repayment of obligations under finance leases Dividends paid to equity holders Net cash generated from/(used in) financing activities ntra-Group funding and Intercompany transactions 13 13 300 300 313 (3,571) (3,571) (150) (150) (3,721) 253 253 253 (10) (10) (10) (82) (82) (82) (3,386) (3,386) 150 150 (3,236) 9 - 9 (9) - (9) Net Increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Effect of foreign exchange rate changes Cash and cash equivalents including cash held in disposal (281) (22) (303) 542 (27) 515 3,043 789 212 3,832 15 15 2,755 1,304 4,059 Income statement The segment results and the reconciliation of the segment measures to the respective statutory items included in the Group income statement are as follows: 52 weeks ended 24 February 2018 At constant exchange rates UK & ROI m Central Europe Tesco Asia Bank m m m Total at constant exchange m Total Foreign exchange at actual exchange m Em Continuing operations Group sales 38,522 5,884 4,692 1,051 50,149 842 50,991 Revenue 44,775 6,109 4,692 1,051 56,627 864 57,491 Operating profit/(loss) before exceptional items* Exceptional items 1,046 110 282 173 1,611 33 1,644 141 88 (20) (24) 185 8 193 Operating profit/(loss) 1,187 198 262 149 1,796 41 1,837 Operating margin 2.3% 1.8% 6.0% 16.5% 2.8% 2.9% 52 weeks ended 24 February 2018 At actual exchange rates Continuing operations Group sales Revenue Operating profit/(loss) before exceptional items* Exceptional items Operating profit/(loss) Operating margin Share of post-tax profits/(losses) of joint ventures and associates Finance income Finance costs Profit/(loss) before tax 52 weeks ended 25 February 2017 At actual exchange rates Continuing operations Group sales Revenue Operating profit/(loss) before exceptional Items* Exceptional items Operating profit/(loss) Operating margin Share of post-tax profits/(losses) of joint ventures and associates Finance income Finance costs Profit/(loss) before tax Total Central Tesco at actual UK & ROI m Europe Em Asia m Bank m exchange Em 38,650 6,343 4,947 1,051 50,991 44,908 6,585 4,947 1,051 57,491 1,053 119 299 173 1,644 146 93 (22) (24) 193 1,199 212 277 149 1,837 2.3% 1.8% 6.0% 16.5% 2.9% (6) 98 (631) 1,298 UK & ROI m Central Europe Tesco Asia Bank Total at actual exchange Em m m Em 37,692 5,977 5,186 1,012 49,867 43,524 6,195 5,186 1,012 55,917 803 58 262 157 1,280 (284) 132 (31) (80) (263) 519 190 231 77 1,017 1.8% 0.9% 5.1% 15.5% 2.3% (107) 109 (874) 145 * Intercompany recharges totalling nil (2017: 2m) between continuing operations and the Turkey discontinued operations have been eliminated. Group results 2017/18 52 weeks ended 24 February 2018 Year-on-year Year-on-year change change (Constant (Actual On a continuing exchange exchange operations basis 2017/18 Group sales 50,991m 2016/17 49,867m rates) rates) 0.6% 2.3% (exc. VAT, exc. fuel) Fuel 6,500m 6,050m 7.1% 7.4% Revenue 57,491m 55,917m 1.3% 2.8% (exc. VAT, Inc. fuel) Group operating 1,644m 1,280m 25.9% 28.4% profit before exceptional Items UK & ROI 1,053m 803m 30.3% 31.1% Central Europe 119m 58m 89.7% 105.2% Asia 299m 262m 7.6% 14.1% Tesco Bank 173m 157m 10.2% 10.2% Include exceptional 193m (263)m items Group operating profit 1,837m 1,017m 76.6% 80.6% Group profit before tax 1,282m 781m 64.1% before exceptional items, IAS 19 finance costs and IAS 39 fair value remeasurements Group statutory 1,298m 145m 795.2% profit before tax Diluted EPS before 11.88p 7.30p exceptional items. IAS 19 finance costs and IAS 39 fair value remeasurements Diluted EPS 12.08p 0.81p Basic EPS 12.12p 0.81p Dividend per share 3.0p Capex 1.1bn 1.2bn Net debt (2.6)bn (3.7)bn Cash generated from 2.8bn 2.3bn retail operations Segmental results UK & ROI Year-on-year Year-on-year change change (Constant (Actual Sales Like-for-like sales On a continuing operations basis (exc. VAT, exc. fuel) (exc. VAT, exc. fuel) exchange exchange 2017/18 2016/17 rates) rates) 38,650m 37,692m 2.2% 2.5% 2.3% 0.9% Revenue 44,908m 43,524m (exc. VAT, Inc. fuel) Revenue includes: fuel 6,258m 5,832m Operating 1,053m 803m 30.3% 31.1% profit before exceptional items Operating profit 2.34% 1.84% 49bp 50bp margin before exceptional items Operating profit 1,199m 519m