Our investment case

[Reading time – approx. 2mins20]

• Frame 1 – Why invest in Sainsbury’s?

  • We’re taking Sainsbury’s to the Next Level

• Frame 2 – founders

  • When John James and Mary Ann Sainsbury’s opened their first store in 1869, they began with a simple promise: quality perfect, prices lower

• Frame 3 – Timeline

  • And we’re proud to have been at the heart of Britian’s relationship with food ever since

• Frame 4 – today’s position

  • Now, more than 150 years later, we’re the second largest grocer in the UK, and one of the UK’s biggest general merchandise and clothing retailers

• Frame 5 – brands

  • Whether in-store or online, we are giving customers more of what they come to Sainsbury’s for: great value, leading quality, excellent availability and outstanding service

• Frame 6 – purpose

  • Everything we do is driven by a clear and compelling purpose to make good food joyful, accessible and affordable for everyone, every day

  • This purpose shapes why we exist and ensures we make balanced choices to deliver for our customers, colleagues, suppliers and shareholders

• Frame 7 – strategy

  • It’s our ambition to be the UK’s first choice for food and our Next Level Sainsbury’s strategy is how we get there

  • At the same time:

    • We’re building a world-leading loyalty platform with Nectar

    • We are transforming Argos, so more customers buy more complete baskets more often

    • And we are committed to delivering £1 billion of structural cost savings

• Frame 8 – building on strong foundations

  • We know that our brand and heritage in food are our greatest asset

  • Combined with our physical store estate, product assortment and technology capabilities, long-term supplier partnerships, loyal customers and a balance sheet which allows us to invest to remain competitive – it is clear we have strong fundamentals and are building a sustainable competitive advantage

• Frame 9 – zoom in to focus on the investment case

  • Building on these strong foundations – we have a clear plan to drive growth and cash generation – with an ambition to deliver strong returns for shareholders

• Frame 10 – investment case: profit leverage

  • Our first priority is to deliver profit leverage from volume driven sales growth

  • And we are committed to outperforming the grocery market on volume each year

    • [Show frame 15 – volume KPI chart here]

• Frame 11 – transition

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• Frame 12 – investment case: sustainable cash generation

  • We are combining this profitability with disciplined capital investment to ensure consistent and reliable cashflows

• Frame 13 – transition

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• Frame 14 – investment case: enhanced shareholder returns

  • And we retain a focused capital allocation policy that delivers enhanced cash returns to our shareholders

• Frame 17 – FCF chart

  • We expect to deliver at least £1.6 billion of retail free cash flow over the 3 year life of the plan to March 2027

  • And we are delivering enhanced shareholder returns through a progressive dividend policy and a core annual buyback

• Frame 18 / 19 / 20

  • With strong momentum and a clear commitment to sustaining our competitive position and we expect to continue to outperform the market, supporting our profit and cash flow outlook and enabling us to deliver sustained, strong shareholder returns

  • As we take Sainsbury’s to the Next Level