Tesco plc Annual Report and Financial Statements 2012

More documents

Recommendations

Info

Notes to the Group financial statements Note 2 Segmental reporting The Group’s reporting segments are determined based on the Group’s internal reporting to the Chief Operating Decision Maker (‘CODM’). The CODM has been determined to be the Executive Committee as it is primarily responsible for the allocation of resources to segments and the assessment of performance of the segments. During the financial year, the Group announced its decision to sell its operations in Japan (previously reported as part of the Asia segment). Accordingly, these operations have been treated as discontinued as described in more detail in Notes 1 and 7. The segment results do not include any amounts for these discontinued operations. The segment assets and other segment information sets out continuing operations separately from discontinued operations. The CODM now considers the principal activities of the Group to be: �� Retailing and associated activities in: – the UK; – Asia – China, India, Malaysia, South Korea, Thailand; – Europe – Czech Republic, Hungary, Poland, Republic of Ireland, Slovakia, Turkey; and – the United States of America (‘US’) �� Retail banking and insurance services through Tesco Bank in the UK. The CODM uses trading profit, as reviewed at monthly Executive Committee meetings, as the key measure of the segments’ results as it reflects the segments’ underlying trading performance for the financial year under evaluation. Trading profit is a consistent measure within the Group. Segment trading profit is an adjusted measure of operating profit and measures the performance of each segment before profits/losses arising on property-related items, the impact on leases of annual uplifts in rent and rent-free periods, intangible asset amortisation charges and costs arising from acquisitions, and goodwill impairment and restructuring and other one-off costs. The IAS 19 pension charge is replaced with the ‘normal’ cash contributions for pensions. An adjustment is also made for the fair value of customer loyalty awards. Inter-segment revenue between the operating segments is not material. The segment results, the reconciliation of the segment measures to the respective statutory items included in the Group Income Statement, the segment assets and other segment information are as follows: Total at constant exchange £m Total at actual exchange £m Year ended 25 February 2012 At constant exchange rates * Continuing operations UK £m Asia £m Europe £m US £m Tesco Bank £m Foreign exchange £m Sales including VAT (excluding IFRIC 13) 47,355 11,615 11,380 660 1,044 72,054 (19) 72,035 Revenue (excluding IFRIC 13) 42,798 10,816 9,878 652 1,044 65,188 (22) 65,166 Effect of IFRIC 13 (550) (35) (39) (2) – (626) (1) (627) Revenue 42,248 10,781 9,839 650 1,044 64,562 (23) 64,539 Trading profit/(loss) 2,480 735 525 (158) 168 3,750 11 3,761 Trading margin † 5.8% 6.8% 5.3% (24.2%) 16.1% 5.8% 5.8% Year ended 25 February 2012 At actual exchange rates ** Continuing operations UK £m Asia £m Europe £m US £m Tesco Bank £m Total at actual exchange £m Sales including VAT (excluding IFRIC 13) 47,355 11,627 11,371 638 1,044 72,035 Revenue (excluding IFRIC 13) 42,798 10,828 9,866 630 1,044 65,166 Effect of IFRIC 13 (550) (35) (40) (2) – (627) Revenue 42,248 10,793 9,826 628 1,044 64,539 Trading profit/(loss) 2,480 737 529 (153) 168 3,761 Trading margin † 5.8% 6.8% 5.4% (24.3%) 16.1% 5.8% * Constant exchange rates are the average actual periodic exchange rates for the previous financial year. ** Actual exchange rates are the average actual periodic exchange rates for that financial year. † Trading margin is based on revenue excluding the accounting impact of IFRIC 13. 102 Tesco PLC Annual Report and Financial Statements 2012
OVERVIEW Note 2 Segmental reporting continued STRATEGIC REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTS Year ended 26 February 2011 * At actual exchange rates ** Continuing operations UK £m Asia £m Europe £m US £m Tesco Bank £m Total at actual exchange £m Sales including VAT (excluding IFRIC 13) 44,571 10,524 10,558 502 919 67,074 Revenue (excluding IFRIC 13) 40,766 9,802 9,192 495 919 61,174 Effect of IFRIC 13 (649) (37) (33) – – (719) Revenue 40,117 9,765 9,159 495 919 60,455 Trading profit/(loss) 2,504 605 527 (186) 264 3,714 Trading margin † 6.1% 6.2% 5.7% (37.6%) 28.7% 6.1% Reconciliation of trading profit to profit before tax Trading profit 3,761 3,714 Adjustments: Profit/losses arising on property-related items 376 432 IAS 19 ‘Employee Benefits’ – non-cash Group Income Statement charge for pensions (35) (95) IAS 17 ‘Leases’ – impact of annual uplifts in rent and rent-free periods (48) (64) IFRS 3 ‘Business Combinations’ – intangible asset amortisation charges and costs arising from acquisitions (22) (42) IFRIC 13 ‘Customer Loyalty Programmes’ – fair value of awards (17) (8) Restructuring and other one-off costs (30) (20) Operating profit 3,985 3,917 Share of post-tax profits from joint ventures and associates 91 57 Finance income 176 150 Finance costs (417) (483) Profit before tax 3,835 3,641 Taxation (879) (864) Profit for the year from continuing operations 2,956 2,777 Segment assets At 25 February 2012 UK £m Asia £m Europe £m US £m Tesco Bank £m Other/ unallocated £m Total continuing operations 2012 £m Discontinued operations Total segment non-current assets 14,978 8,471 6,835 1,086 4,799 1,749 37,918 – 37,918 Total segment non-current assets includes: Investments in joint ventures and associates 134 217 – – 72 – 423 – 423 At 26 February 2011 * UK £m Asia £m Europe £m US £m Tesco Bank £m Other/ unallocated £m Total continuing operations Discontinued operations Total segment non-current assets 14,456 7,557 6,601 945 4,340 1,187 35,086 81 35,167 Total segment non-current assets includes: Investments in joint ventures and associates 79 173 – – 64 – 316 – 316 * See Note 1 Accounting policies for details of reclassifications. ** Actual exchange rates are the average actual periodic exchange rates for that financial year. † Trading margin is based on revenue excluding the accounting impact of IFRIC 13. 2011* £m Total £m Total £m Tesco PLC Annual Report and Financial Statements 2012 103
Page 1 and 2:
Annual Report and Financial Stateme
Page 3 and 4:
Trading profit £529m 14% of Group
Page 5 and 6:
OVERVIEW Chairman’s statement Cha
Page 7 and 8:
OVERVIEW Chief Executive’s review
Page 9 and 10:
OVERVIEW STRATEGIC REVIEW PERFORMAN
Page 11 and 12:
Page 13 and 14:
OVERVIEW Strategy in action IN THIS
Page 15 and 16:
OVERVIEW Quality and innovation STR
Page 17 and 18:
OVERVIEW Clothing The UK clothing m
Page 19 and 20:
OVERVIEW Click & Collect Click & Co
Page 21 and 22:
OVERVIEW Smaller format stores Smal
Page 23 and 24:
OVERVIEW Fresh & Easy: progress in
Page 25 and 26:
OVERVIEW Savings and loans New prod
Page 27 and 28:
Page 29 and 30:
OVERVIEW Business model -- Core act
Page 31 and 32:
Page 33 and 34:
OVERVIEW Our KPIs measure how we ar
Page 35 and 36:
OVERVIEW Group strategy: To be an o
Page 37 and 38:
OVERVIEW Financial review Laurie Mc
Page 39 and 40:
OVERVIEW US trading loss £(142)m
Page 41 and 42:
OVERVIEW Board of Directors Governa
Page 43 and 44:
OVERVIEW Board of Directors STRATEG
Page 45 and 46:
OVERVIEW Principal risks Reputation
Page 47 and 48:
OVERVIEW Principal risks Product sa
Page 49 and 50:
OVERVIEW Principal risks Credit ris
Page 51 and 52:
OVERVIEW Financial risks review STR
Page 53 and 54:
Page 55 and 56: OVERVIEW Governance structures STRA
Page 57 and 58: OVERVIEW Length of service of each
Page 59 and 60: OVERVIEW STRATEGIC REVIEW PERFORMAN
Page 61 and 62: OVERVIEW Remuneration Committee Rem
Page 63 and 64: OVERVIEW A Board visit is organised
Page 67 and 68: OVERVIEW The areas covered by the C
Page 71 and 72: OVERVIEW Remuneration policy for Ex
Page 73 and 74: OVERVIEW Share ownership guidelines
Page 75 and 76: OVERVIEW As announced in January 20
Page 77 and 78: OVERVIEW Performance measures and p
Page 79 and 80: OVERVIEW Aligning pay with performa
Page 81 and 82: OVERVIEW Chairman The Remuneration
Page 83 and 84: OVERVIEW Governance Oversight Commi
Page 99 and 100: OVERVIEW Note 1 Accounting policies
Page 105: OVERVIEW Note 1 Accounting policies
Page 109 and 110: OVERVIEW Note 3 Income and expenses
Page 111 and 112: OVERVIEW Note 6 Taxation continued
Page 115 and 116: OVERVIEW Note 10 Goodwill and other
Page 117 and 118: OVERVIEW Note 11 Property, plant an
Page 119 and 120: OVERVIEW Note 12 Investment propert
Page 121 and 122: OVERVIEW Note 13 Group entities con
Page 123 and 124: OVERVIEW Note 17 Loans and advances
Page 125 and 126: OVERVIEW Note 20 Borrowings Current
Page 127 and 128: OVERVIEW Note 21 Financial instrume
Page 129 and 130: OVERVIEW Note 21 Financial instrume
Page 131 and 132: OVERVIEW Note 22 Financial risk fac
Page 133 and 134: OVERVIEW Note 22 Financial risk fac
Page 135 and 136: OVERVIEW Note 24 Provisions continu
Page 137 and 138: OVERVIEW Note 25 Share-based paymen
Page 139 and 140: OVERVIEW Note 26 Post-employment be
Page 141 and 142: OVERVIEW Note 27 Called up share ca
Page 145 and 146: OVERVIEW Note 34 Leasing commitment
Page 149 and 150: OVERVIEW Note 2 Auditor remuneratio
Page 151 and 152: OVERVIEW Note 9 Borrowings STRATEGI
Page 153 and 154: OVERVIEW Note 11 Share-based paymen
Page 157 and 158:
Financial calendar Financial year e
show all

Tesco plc Annual Report and Financial Statements 2012

Create successful ePaper yourself

Delete template?

Save as template?