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2 Profit sharing The amount provided for profit sharing for the UK retail companies is calculated on the operating profits and net interest reflected in the accounts of the participating companies. The figure on which the profit fund is based is £806 million (1998: £755 million). £42 million (1998: £41 million) has been provided for the profit fund and £3 million (1998: £3 million) for Employers’ National Insurance payable thereon. Employees participate in the Profit Sharing Scheme after completing one financial year’s service and obtain full benefits after the third year. In respect of the 56 week period ended 3 April 1999, 120,700 employees are eligible. A distribution rate is calculated according to the size of the profit fund and the total qualifying pay of eligible employees and is finalised following the Annual General Meeting. The distribution rate in 1999 is expected to be approximately 4.4 per cent of 56 week qualifying pay (1998: 5.2 per cent of 52 week qualifying pay). Profit sharing may be taken in cash under the Cash Trust or, subject to the statutory maximum, in shares under the Share Trust. The number of shares allotted to Profit Sharing Scheme participants in July 1998 is set out in note 24. At 3 April 1999, the Trustees of the J Sainsbury Profit Sharing Scheme Share Trust held 9.9 million shares (1998: 11.1 million) on behalf of 52,105 participants (1998: 45,396) in the Scheme. 3 Profit on disposal of an associate The Company’s investment in Giant Food Inc. was sold to Koninklijke Ahold N.V. on 28 October 1998. The profit on disposal of £84 million is after deducting £148 million of goodwill which was written off to reserves at the time of acquisition and after deducting £16 million in relation to the unwinding of debt instruments which were funding the Group’s investments in Giant (see note 21). Taxation arising on the disposal of Giant Food Inc. of £40 million is disclosed in note 8. The Company also disposed of its investment in Breckland Farms Ltd on 24 April 1998. 4 Net interest payable Group 1999 1998 56 weeks 52 weeks £m £m Interest receivable 45 26 Interest payable: Bank loans and overdrafts 17 20 Other loans 82 84 Finance leases 16 14 115 118 Interest capitalised (15) (14) 100 104 Net interest payable 55 78 Including interest receivable attributable to Sainsbury’s Bank plc of £139 million (1998: £61 million), included in sales, and interest payable attributable to Sainsbury’s Bank plc of £108 million (1998: £49 million), included in cost of sales, total interest receivable for the 56 weeks ended 3 April 1999 amounted to £184 million and total interest payable amounted to £223 million. Of the interest capitalised figure, £12 million (1998: £12 million) has been capitalised into fixed assets (see note 11) and £3 million (1998: £2 million) has been capitalised into stocks during the financial year. J Sainsbury plc Annual report and accounts 1999 41
Notes to the accounts 5 Profit on ordinary activities before tax 42 J Sainsbury plc Annual report and accounts 1999 Group 1999 1998 56 weeks 52 weeks £m £m This has been arrived at after charging/(crediting): Depreciation – owned assets 380 337 – finance leases 8 8 Pension costs 70 52 Auditors’ remuneration – audit fee (Company £0.1 million (1998: £0.1 million)) 0.6 0.6 – other services (see below) 2.9 2.4 Operating lease rentals – plant and equipment 12 12 – other 249 222 – receivable (19) (21) Non-audit fees paid to PricewaterhouseCoopers and its associates (being the predecessor partnerships of Price Waterhouse and Coopers & Lybrand) during the period were £2.9 million of which £0.6 million related to work by Coopers & Lybrand, the previous auditors, and its associates. (Non-audit fees in 1998 comprise solely amounts paid to Coopers & Lybrand). These fees were charged to the Company and its UK subsidiaries for services which include taxation advice, advice on business effectiveness and information system programme implementation. 6 Employees Group 1999 1998 56 weeks 52 weeks £m £m Employees’ remuneration and related costs during the period amounted to: Wages and salaries 1,696 1,479 Social security costs 108 92 Other pension costs 70 52 1,874 1,623 Profit sharing 45 44 1,919 1,667 Group 1999 1998 Number Number The average number of employees during the period was: Full-time 55,956 55,332 Part-time 123,002 120,219 178,958 175,551 Full-time equivalent 109,245 107,266
Page 1 and 2: Annual report and accounts 1999
Page 3 and 4: J Sainsbury plc is one of the world
Page 5 and 6: Financial highlights Group sales £
Page 7 and 8: A common theme runs through our Gro
Page 9 and 10: Right: As customer tastes become mo
Page 11 and 12: Above: Our Prawn Laksa, a spicy coc
Page 13 and 14: Greater choice, greater value Left:
Page 15 and 16: Above: Sainsbury’s Hydro Source i
Page 17 and 18: Operating review SAINSBURY’S SUPE
Page 19 and 20: Operating review Sainsbury’s Cent
Page 21 and 22: Operating review Shaw’s Directors
Page 23 and 24: Financial review Group capital expe
Page 25 and 26: Board of Directors 22 J Sainsbury p
Page 27 and 28: Report of the Directors for the 56
Page 29 and 30: Report of the Directors Annual Gene
Page 31 and 32: Report of the Remuneration Committe
Page 37 and 38: Accounting policies Basis of accoun
Page 39 and 40: Group profit and loss account for t
Page 41 and 42: Group cash flow statement for the 5
Page 43: Notes to the accounts at 3 April 19
Page 47 and 48: Notes to the accounts 11 Tangible f
Page 49 and 50: Notes to the accounts 13 Investment
Page 51 and 52: Notes to the accounts 17 Current as
Page 53 and 54: Notes to the accounts 21 Financial
Page 55 and 56: Notes to the accounts 21 Financial
Page 57 and 58: Notes to the accounts 24 Called up
Page 59 and 60: Notes to the accounts 27 Reconcilia
Page 61 and 62: Interim accounts 52 weeks ended 6 M
Page 63 and 64: Ten year financial record 60 J Sain
Page 65 and 66: Investor information Shareholders
Page 67 and 68: Financial calendar, registered offi
Page 69: J Sainsbury plc Stamford House Stam

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