EMBRACING CHANGE

 
PASSION, PEOPLE, PRODUCT

 
PRODUCT AND PRICE

 
BEST AT FRESH

 
BEST AT AVAILABILITY

 
BEST AT CUSTOMER SERVICE

 
THE SAFEWAY BOARD

 
FINANCIAL REVIEW

 
THE ACCOUNTS

• Group profit & loss account
• Reconciliation of movements in shareholders' funds
• Balance sheets
• Cash flow statement
• Reconciliation of net cash flow to movement in net debt
• Analysis of movement in net debt during the year
• General accounting policies
• Notes to the accounts
• Report of the Directors
• Directors' responsibilities
• Report of the auditors
• Shareholder information
• Five year retail statistical summary
• Five year financial summary

OUR STORES

	Year ended 30 March 1996	Year ended 29 March 1997	Year ended 28 March 1998	Year ended 3 April 1999	Year ended 1 April 2000
Sales	6,500.0	7,066.4	7,493.6	8,098.9	8,327.8
Operating profit	417.5	461.8	409.9	421.8	317.4
Share of joint venture operating (loss)/profit	-	-	(0.2)	0.2	0.1
Net property losses	(9.5)	(9.5)	(18.5)	(16.5)	(9.0)
Net interest and investment income	(16.3)	(31.7)	(51.0)	(64.9)	(72.4)
Profit before taxation and exceptional items	391.7	420.6	340.2	340.6	236.1
Exceptional items	37.7	-	-	-	-
Profit on ordinary activities before taxation	429.4	420.6	340.2	340.6	236.1
Tax on profit on ordinary activities	(128.8)	(126.2)	(104.0)	(107.1)	(76.0)
Minority interest	-	-	4.8	9.7	7.1
Profit for the financial year	300.6	294.4	241.0	243.2	167.2
Earnings per share
Before exceptionals and net property losses	24.7p	27.4p	24.9p	23.8p	17.1p
Before exceptionals, after net property losses	24.1p	26.8p	22.2p	22.3p	16.2p
After exceptional items	26.4p	26.8p	22.2p	22.3p	16.2p
Dividends per share (net)	12.75p	14.10p	14.10p	14.40p	8.64p
Net tangible assets
Fixed assets	2,987.7	3,221.8	3,506.5	3,847.8	3,934.6
Net current liabilities	(693.7)	(766.8)	(661.9)	(901.8)	(864.1)
Creditors (due after one year)	(344.6)	(557.4)	(822.3)	(817.2)	(1,020.4)
Deferred taxation	(10.2)	(10.2)	(10.2)	(10.2)	(10.2)
Total capital employed	1,939.2	1,887.4	2,012.1	2,118.6	2,039.9
Net debt	(248.2)	(628.0)	(771.6)	(969.2)	(1,221.1)
Net gearing	12.8%	33.3%	38.3%	45.7%	59.9%
Return on capital employed (after taxation)	14.8%	15.4%	13.7%	11.8%	8.0%
Net tangible assets per ordinary share	169.8p	173.5p	183.1p	191.2p	194.6p
Capital expenditure
Booked in the year	423.5	389.5	426.7	492.3	286.7
Payments made in the year (FRS 1 basis)	357.9	396.2	464.7	459.8	319.3

Notes:

1. The year ended 3 April 1999 comprised 53 weeks.
2. Profit before taxation and exceptional items for the year ended 28 March 1998 was after charging £30.0 million for the costs of the store portfolio review and redundancy programme.
3. The £30.0 million costs of the store portfolio review and redundancy programme (less tax relief of £4.8 million), reduced earnings per share in the year ended 28 March 1998 by 2.3p.
4. Return on capital employed (after taxation) for the year ended 28 March 1998 was calculated before the costs (net of available tax relief) of the store portfolio review and redundancy programme.
5. Sales represent group sales including our share of BP joint venture.