REG - Sainsbury(J) PLC - Final Results <Origin Href="QuoteRef">SBRY.L</Origin> - Part 3
15/07/2015 16:12
- Part 3: For the preceding part double click ID:nRSF2754Mb
- - 2 - 2 - 2
Items reclassified from cash flow hedge reserve - - 4 - 4 - 4
Total comprehensive (loss)/income for the year ended 15 March 2014 - - (8) 443 435 - 435
Transactions with owners:
Dividends paid 8 - - - (320) (320) - (320)
Amortisation of convertible bond - equity component - - (5) 5 - - -
Share-based payment (net of tax) - - - 31 31 - 31
Shares issued - - - - - 1 1
Shares vested - - - 12 12 - 12
Allotted in respect of share option schemes 4 16 - (12) 8 - 8
At 15 March 2014 545 1,091 807 3,560 6,003 2 6,005
Notes to the financial information
1 Status of financial information
The financial information, which comprises the Group income statement, Group statement of comprehensive income, Group
balance sheet, Group cash flow statement, Group statement of changes in equity and related notes, is derived from the full
Group financial statements for the 52 weeks to 14 March 2015 and does not constitute full accounts within the meaning of
section 435 (1) and (2) of the Companies Act 2006.
The Group Annual Report and Financial Statements 2015 on which the auditors have given an unqualified report and which does
not contain a statement under section 498(2) or (3) of the Companies Act 2006, will be delivered to the Registrar of
Companies in due course, and made available to shareholders in June 2015.
The financial year represents the 52 weeks to 14 March 2015 (prior financial year 52 weeks to 15 March 2014). The
consolidated financial statements for the 52 weeks to 14 March 2015 comprise the financial statements of the Company and
its subsidiaries (the 'Group') and the Group's share of the post-tax results of its joint ventures and associates.
2 Basis of preparation
The Group's financial statements have been prepared in accordance with International Financial Reporting Standards
('IFRSs') as adopted by the European Union and International Financial Reporting Interpretations Committee ('IFRICs') and
with those parts of the Companies Act 2006 applicable to companies reporting under IFRSs.
The financial statements are presented in sterling, rounded to the nearest million ('£m') unless otherwise stated. They
have been prepared on a going concern basis under the historical cost convention, except for derivative financial
instruments, investment properties and available-for-sale financial assets that have been measured at fair value.
The Directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future.
Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
The Group has considered the following new standards, interpretations and amendments to published standards that are
effective for the Group for the financial year beginning 16 March 2014:
· IFRS 10, 'Consolidated financial statements'
· IFRS 11, 'Joint arrangements'
· IFRS 12, 'Disclosures of interests in other entities'
· IAS 27 (revised 2011), 'Separate financial statements'
· IAS 28 (revised 2011), 'Associates and joint ventures'
· Amendments to IFRS 10, 11 and 12 on transition guidance
· Amendment to IAS 36, 'Impairment of assets', on recoverable amount disclosures
· Amendments to IAS 32 'Financial instruments: Presentation' on Financial instruments asset and liability offsetting
· Amendment to IAS 39 'Financial instruments: Recognition and measurement', on novation of derivatives and hedge
accounting
· IFRIC 21, 'Levies'
The Group has concluded that above new standards, interpretations and amendments are either not relevant to the Group or
that they do not have a significant impact on the Group's financial statements, apart from additional disclosure.
3 Non-GAAP performance measures
Certain items recognised in reported loss or profit before tax can vary significantly from year to year and therefore
create volatility in reported earnings which does not reflect the Group's underlying performance. Similarly, whilst defined
benefit pension scheme expenses may not vary significantly, they no longer relate to the Group's ongoing activities given
the closure of the defined benefit pension scheme to future accrual. The Directors believe that the 'underlying revenue',
'underlying profit before tax' ('UPBT') and 'underlying diluted and basic earnings per share' measures presented provide a
clear and consistent presentation of the underlying performance of Sainsbury's ongoing business for shareholders.
Underlying profit is not defined by IFRS and therefore may not be directly comparable with the 'adjusted' profit measures
of other companies.
The adjusted items are:
· Profit/(loss) on disposal of properties;
· Investment property fair value movements - these reflect the difference between the fair value of an investment
property at the reporting date and its carrying amount at the previous reporting date;
· Retail financing fair value movements - these are fair value gains and losses on non-derivative financial assets and
liabilities carried at amortised cost, on derivatives relating to financing activities and on hedged items in fair value
hedges;
· Impairment of goodwill;
· The financing element of IAS 19;
· Defined benefit pension scheme expenses;
· Acquisition adjustments - these reflect the adjustments arising from the Sainsbury's Bank acquisition including the
fair value unwind, the amortisation of acquired intangibles and, in the prior year, the remeasurement of the previously
held equity interest in Sainsbury's Bank; and
· One-off items - these are items which are material and infrequent in nature and do not relate to the Group's
underlying performance.
The adjustments made to reported (loss)/profit before tax to arrive at underlying profit before tax are:
2015 2014
£m £m
Underlying profit before tax 681 798
Profit on disposal of properties1 7 52
Investment property fair value movements 7 -
Retail financing fair value movements2 (30) (8)
IAS 19 pension financing charge (31) (23)
Defined benefit pension scheme expenses (6) (7)
Acquisition adjustments3 13 18
One-off items (713) 68
Total adjustments (753) 100
(Loss)/profit before tax (72) 898
1 Profit on disposal of properties for the financial year comprised £5 million for the Group (2014: £51 million) and
£2 million for the property joint ventures (2014: £1 million).
2 Retail financing fair value movements for the financial year comprised a £23 million loss for the Group (2014: £5
million loss) and a £7 million loss for the joint ventures (2014: £3 million loss).
3 Acquisition adjustments include £23 million (2014: £3 million) fair value unwind included in revenue, £nil (2014:
£15 million) remeasurement of the previously held equity interest included in other income, £8 million (2014: £1 million)
fair value unwind included in cost of sales offset by £18 million (2014: £1 million) acquired intangible amortisation
included in administrative expenses.
The tax impact of adjusted items is included within note 6.
One-off items
One-off items of £713 million includes: a non-cash impairment and onerous contract charge of £628 million; restructuring
costs of £15 million; costs of £53 million in relation to transitioning Sainsbury's Bank to a new, more flexible banking
platform; and £17 million of pension compensation payments.
As part of adapting to our changing customer needs, we have reassessed our store pipeline and the potential to achieve an
appropriate return on capital, which resulted in a decision that some sites will no longer be developed. A charge of £287
million has been recognised within administration expenses, including £256 million of property plant and equipment which is
all land and buildings, £1 million of goodwill, and £30 million of onerous contract provisions.
A charge of £341 million has also been recognised, £310 million within cost of sales and £31 million within administrative
expenses, in relation to unprofitable and marginally profitable trading stores. This includes £284 million of property
plant and equipment, comprised of £156 million land and buildings and £128 million of fixtures and fittings, £7 million
intangible assets, comprised of £2 million goodwill and £5 million of other intangibles, and onerous lease provisions of
£50 million.
The recoverable amount of these assets has been determined as the higher of value-in-use or fair-value less costs to
dispose.
Compensation payments of £17 million were made in the current year to employees on transition to the Group's defined
contribution pension schemes resulting from the closure of the Sainsbury's defined benefit pension scheme to future accrual
in the prior year.
The prior year credit to one-off items of £68 million included the impact of a past service credit net of compensation
payments of £148 million as a result of the closure of the Sainsbury's defined benefit pension scheme to future accrual; a
store pipeline impairment of £92 million; costs of £45 million in relation to the Sainsbury's Bank acquisition; a Nectar
VAT upside of £76 million and other one-off costs of £19 million mainly in relation to restructuring and a provision for a
commercial item, for which we continue to defend our position.
4 Segment reporting
The Group's businesses are organised into three operating segments:
· Retailing (supermarkets and convenience);
· Financial services (Sainsbury's Bank); and
· Property investments (joint ventures with the British Land Company PLC and Land Securities Group PLC).
Management have determined the operating segments based on the information provided to the Operating Board (the Chief
Operating Decision Maker for the Group) to make operational decisions on the management of the Group. All material
operations and assets are in the UK. The business of the Group is not subject to highly seasonal fluctuations, although
within retailing there is an increase in trading in the period leading up to Christmas.
Sainsbury's Bank was accounted for as a 50 per cent owned joint venture for the 46 weeks to 31 January 2014 and
consolidated as a 100 per cent owned subsidiary for the four weeks to 28 February 2014 and for the 2014/15 financial year.
Results for the periods pre and post the acquisition of the additional 50 per cent of shares in Sainsbury's Bank are
included in the financial services segment.
Revenue from operating segments is measured on a basis consistent with the revenue number in the income statement. Revenue
is generated by the sale of goods and services.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be
allocated on a reasonable basis. Segment capital expenditure is the total cost incurred during the period to acquire
segment assets that are expected to be used for more than one period.
The Operating Board assesses the performance of all segments on the basis of underlying profit before tax. The
reconciliation provided below reconciles underlying operating profit from each of the segments disclosed to profit/(loss)
before tax.
52 weeks to 14 March 2015 Retailing£m Financial services£m Property investments£m Group£m
Segment revenue
Retail sales to external customers 23,443 - - 23,443
Financial services to external customers - 309 - 309
Underlying revenue 23,443 309 - 23,752
Acquisition adjustment fair value unwind1 - 23 - 23
Revenue 23,443 332 - 23,775
Underlying operating profit 720 62 - 782
Underlying finance income 19 - - 19
Underlying finance costs (126) - - (126)
Underlying share of post-tax (loss)/profit from joint ventures and associates (9) - 15 6
Underlying profit before tax 604 62 15 681
Profit on disposal of properties 5 - 2 7
Investment property fair value movements - - 7 7
Retail financing fair value movements (23) (7) (30)
IAS 19 pension financing charge (31) - - (31)
Defined benefit pension scheme expenses (6) - - (6)
Acquisition adjustments - 13 - 13
One-off items (660) (53) - (713)
(Loss)/profit before tax (111) 22 17 (72)
Income tax expense (94)
Loss for the financial year (166)
Assets 11,908 4,270 - 16,178
Investment in joint ventures and associates 8 - 351 359
Segment assets 11,916 4,270 351 16,537
Segment liabilities (7,232) (3,766) - (10,998)
Other segment items
Capital expenditure2 968 82 - 1,050
Depreciation expense 540 5 - 545
Amortisation expense3 14 20 - 34
Impairment4 548 - - 548
Share-based payments 21 - - 21
21
-
-
21
1 Represents fair value unwind on loans and advances to customers resulting from the Sainsbury's Bank acquisition in
2013/14.
2 Retail capital expenditure consists of property, plant and equipment additions of £951 million and intangible asset
additions of £17 million. Financial services capital expenditure consists of property, plant and equipment additions of £14
million and intangible asset additions of £68 million.
3 Amortisation expense within the financial services segment includes £18 million of intangible asset amortisation
arising from Sainsbury's Bank acquisition fair value adjustments.
4 Impairment charge includes £540 million recognised against property, plant and equipment and £8 million against
intangible assets.
52 weeks to 15 March 2014 Retailing£m Financial services£m Property investments£m Group£m
Segment revenue
Retail sales to external customers 23,921 - - 23,921
Financial services to external customers - 25 - 25
Underlying revenue 23,921 25 - 23,946
Acquisition adjustment fair value unwind1 - 3 - 3
Revenue 23,921 28 - 23,949
Underlying operating profit 873 6 - 879
Underlying finance income 20 - - 20
Underlying finance costs (131) - - (131)
Underlying share of post-tax profit from joint ventures and associates (4) 18 16 30
Underlying profit before tax 758 24 16 798
Profit on disposal of properties 51 - 1 52
Retail financing fair value movements (5) - (3) (8)
IAS 19 pension financing charge (23) - - (23)
Defined benefit pension scheme expenses (7) - - (7)
Acquisition adjustments - 18 - 18
One-off items 113 (45) - 68
Profit before tax 887 (3) 14 898
Income tax expense (182)
Profit for the financial year 716
Assets 12,023 4,113 - 16,136
Investment in joint ventures and associates 3 - 401 404
Segment assets 12,026 4,113 401 16,540
Segment liabilities (6,907) (3,628) - (10,535)
Other segment items
Capital expenditure (including acquisitions through business combinations)2 994 131 - 1,125
Depreciation expense 536 - - 536
Amortisation expense3 14 1 - 15
Impairment 92 - - 92
Share-based payments 33 - - 33
33
-
-
33
1 Represents fair value unwind on loans and advances to customers resulting from the Sainsbury's Bank acquisition.
2 Retail capital expenditure consists of property, plant and equipment additions of £975 million and intangible asset
additions of £19 million. Financial services capital expenditure consists of property, plant and equipment additions of £18
million acquired as part of the Sainsbury's Bank acquisition and intangible asset additions (including goodwill) of £113
million of which £88 million was acquired as part of the Sainsbury's Bank acquisition.
3 Amortisation expense within the financial services segment includes £1 million of intangible asset amortisation
arising from acquisition fair value adjustments.
5 Finance income and finance costs
2015 2014
£m £m
Interest on bank deposits and other financial assets 19 20
Finance income 19 20
Borrowing costs:
Secured borrowings (84) (91)
Unsecured borrowings (47) (56)
Obligations under finance leases (9) (8)
Provisions - amortisation of discount (3) (2)
(143) (157)
Other finance costs:
Interest capitalised - qualifying assets 17 26
Retail financing fair value movements1 (23) (5)
IAS 19 pension financing charge (31) (23)
(37) (2)
Finance costs (180) (159)
(180)
(159)
1 Retail financing fair value movements includes net fair value movements on derivative financial instruments not
designated in a hedging relationship of £(18) million (2014: £(4) million) and fair value movements on early repayment of
bank loans carried at amortised cost of £(5) million (2014: £(1) million).
6 Income tax expense
2015 2014
£m £m
Current tax expense 98 214
Deferred tax credit (4) (32)
Total income tax expense in income statement 94 182
The effective tax rate of (130.6) per cent (2014: 20.3 per cent) is lower than (2014: lower than) the standard rate of
corporation tax in the UK. The differences are explained below:
2015 2014
£m £m
(Loss)/profit before tax (72) 898
Income tax at UK corporation tax rate of 21.09% (2014: 23.04%) (15) 207
Effects of underlying items:
Disallowed depreciation on UK properties 30 31
Over provision in prior years (5) (7)
Revaluation of deferred tax balances 1 (31)
Other 6 (3)
Effects of non-underlying items:
Profit on disposal of properties (6) (16)
Investment property fair value movements (1) -
Revaluation of deferred tax balances - (20)
(Over)/under provision in prior years (1) 3
Impairment 84 21
Other one-off items 1 -
Other - (3)
Total income tax expense in income statement 94 182
On 20 March 2013, the Chancellor announced that the main rate of UK corporation tax would reduce to 20.0 per cent from 1
April 2015. This was substantively enacted on 2 July 2013 and hence the effect of the change on the deferred tax balances
was included in the 2014 figures above.
7 Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted
average number of ordinary shares in issue during the year, excluding those held by the Employee Share Ownership Plan
trusts, which are treated as cancelled.
For diluted earnings per share, the earnings attributable to the ordinary shareholders are adjusted by the interest on the
convertible bonds (net of tax). The weighted average number of ordinary shares in issue is adjusted to assume conversion of
all potentially dilutive ordinary shares. These represent share options granted to employees where the exercise price is
less than the average market price of the Company's ordinary shares during the year and the number of shares that would be
issued if all convertible bonds are assumed to be converted.
Underlying earnings per share is provided by excluding the effect of any profit or loss on disposal of properties,
investment property fair value movements, retail financing fair value movements, impairment of goodwill, IAS 19 pension
financing element, defined benefit pension scheme expenses, acquisition adjustments and one-off items that are material and
infrequent in nature. This alternative measure of earnings per share is presented to reflect the Group's underlying trading
performance.
All operations are continuing for the periods presented.
2015 2014
million million
Weighted average number of shares in issue 1,911.0 1,896.8
Weighted average number of dilutive share options 17.3 25.4
Weighted average number of dilutive convertible bonds 62.3 46.3
Total number of shares for calculating diluted earnings per share 1,990.6 1,968.5
£m £m
(Loss)/profit for the financial year (166) 716
Add interest on convertible bonds, net of tax1 - 11
Diluted (loss)/earnings for calculating diluted earnings per share (166) 727
£m £m
(Loss)/profit for the financial year attributable to owners of the parent (166) 716
(Less)/add (net of tax):
Profit on disposal of properties (17) (53)
Investment property fair value movements (7) -
Retail financing fair value movements 25 7
IAS 19 pension financing charge 24 18
Defined benefit pension scheme expenses 5 5
Acquisition adjustments (9) (17)
One-off items 650 (33)
Revaluation of deferred tax balances - (20)
Underlying profit after tax 505 623
Add interest on convertible bonds, net of tax 7 11
Diluted underlying profit after tax 512 634
pence pence
per share per share
Basic (loss)/earnings (8.7) 37.7
Diluted (loss)/earnings1 (8.7) 36.9
Underlying basic earnings 26.4 32.8
Underlying diluted earnings 25.7 32.2
1 Dilutive share options and convertible bonds have been excluded from the calculation as in accordance with 'IAS
33, Earnings per share', they are only included where the impact is dilutive.
8 Dividend
2015 2014
pence pence 2015 2014
per share per share £m £m
Amounts recognised as distributions to equity holders in the year:
Final dividend of prior financial year 12.3 11.9 234 225
Interim dividend of current financial year 5.0 5.0 96 95
17.3 16.9 330 320
After the balance sheet date, a final dividend of 8.2 pence per share (2014: 12.3 pence per share) was proposed by the
Directors in respect of the 52 weeks to 14 March 2015, resulting in a total final proposed dividend of £157 million (2014:
£234 million). The proposed final dividend has not been included as a liability at 14 March 2015.
9 Notes to the cash flow statement
(a) Reconciliation of operating (loss)/profit to cash generated from operations
2015 2014
£m £m
(Loss)/profit before tax (72) 898
Net finance costs 161 139
Share of post-tax profits of joints ventures (8) (28)
Operating profit 81 1,009
Adjustments for:
Depreciation expense 545 536
Amortisation expense 34 15
Non-cash acquisition adjustments1 (31) (19)
Sainsbury's Bank impairment losses on loans and advances 21 2
Profit on disposal of properties (5) (51)
Impairment of property, plant and equipment 540 92
Impairment of intangible assets 8 1
Nectar VAT recovery - (14)
Foreign exchange differences (12) 6
Share-based payments expense 21 33
Retirement benefit obligations2 (79) (244)
Operating cash flows before changes in working capital 1,123 1,366
Changes in working capital:
Decrease/(increase) in inventories 6 (19)
Decrease in available-for-sale financial assets 32 -
(Increase)/decrease in trade and other receivables (57) 13
Increase in amounts due from Sainsbury's Bank customers (426) (23)
Increase/(decrease) in trade and other payables 294 (118)
Increase in amounts due to Sainsbury's Bank customers 114 6
Increase in provisions 50 2
Cash generated from operations 1,136 1,227
1 Refer to note 3 for details of acquisition adjustments. This excludes £18 million (2014: £1 million) amortisation on
acquired intangibles included within amortisation in this note.
2 The adjustment for retirement benefit obligations reflects the difference between the service charge of £nil million
(2014: £34 million) for the defined benefit scheme, defined benefit pension scheme expenses of £6 million (2014: £7
million), one-off past service credit of £nil million (2014: £(158) million) and the cash contributions of £85 million made
by the Group to the defined benefit scheme (2014: £127 million).
(b) Cash and cash equivalents
For the purposes of the cash flow statements, cash and cash equivalents comprise the following:
2015 2014
£m £m
Cash in hand and bank balances 970 409
Money market funds and deposits 262 656
Treasury bills 53 527
Cash and bank balances 1,285 1,592
Bank overdrafts (9) (13)
Net cash and cash equivalents 1,276 1,579
10 Analysis of net debt
Group 2015 Sainsbury's Bank Adjusted Group 20151 Group 2014 Sainsbury's Bank Adjusted Group 20141
£m £m £m £m £m £m
Non-current assets
Interest bearing available-for-sale financial assets 37 - 37 37 - 37
Derivative financial instruments 21 (1) 20 28 (1) 27
58 (1) 57 65 (1) 64
Current assets
Cash and cash equivalents 1,285 (882) 403 1,592 (1,225) 367
Derivative financial instruments 69 - 69 49 - 49
1,354 (882) 472 1,641 (1,225) 416
Current liabilities
Bank overdrafts (9) - (9) (13) - (13)
Borrowings (221) - (221) (494) - (494)
Finance leases (30) - (30) (27) - (27)
Derivative financial instruments (75) 1 (74) (65) - (65)
(335) 1 (334) (599) - (599)
Non-current liabilities
Borrowings (2,337) - (2,337) (2,089) - (2,089)
Finance leases (169) - (169) (161) - (161)
Derivative financial instruments (38) 6 (32) (21) 6 (15)
(2,544) 6 (2,538) (2,271) 6 (2,265)
Total net debt (1,467) (876) (2,343) (1,164) (1,220) (2,384)
1 The Group's definition of net debt excludes Sainsbury's Bank's own net debt balances (2014: The Group's definition
of net debt includes the cost of acquiring Sainsbury's Bank, but excludes Sainsbury's Bank's own net debt balances).
Reconciliation of net cash flow to movement in net debt
2015 2014
£m £m
Net debt at 16 March 2014 (2,384) (2,162)
Net (decrease)/increase in cash and cash equivalents (303) 1,075
Elimination of net decrease/(increase) in Sainsbury's Bank cash and cash equivalents 343 (1,225)
Net (increase)/decrease in borrowings1 (20) 1
Net increase of obligations under finance leases (11) (28)
Fair value movements (7) (45)
Equity component of convertible bond 39 -
Net debt at 14 March 2015 (2,343) (2,384)
(2,384)
1 Excluding fair value and Sainsbury's Bank derivative movements.
11 Retirement benefit obligations
Retirement benefit obligations relate to a defined benefit scheme, the Sainsbury's Pension Scheme, (the 'Scheme') and an
unfunded pension liability relating to senior employees. The Scheme is governed by a Trustee board, and the assets of the
Scheme are held separately from the Group's assets. The Scheme is a Registered pension plan with HMRC, subject to UK
legislation with oversight from the Pensions Regulator. The governance of the Scheme is the responsibility of the Trustee;
the Trustee comprises 11 Directors - five selected from members, five appointed by the Company and one Independent
Chairman. In accordance with legislation, the Trustee consults with the Company regarding the Scheme's investment strategy
and agrees an appropriate funding plan with the Company.
The Scheme has three different benefit categories; Final Salary, Career Average and Cash Balance. For Final Salary and
Career Average members, benefits at retirement are determined by length of service and salary. For Cash Balance members,
benefits are determined by the accrued retirement account credits.
The Scheme was closed to new employees on 31 January 2002 and closed to future accrual on 28 September 2013. A one-off past
service credit was recognised in 2013/14 as a result as disclosed in note 3. The assets of the Scheme are valued at bid
price and are held separately from the Group's assets.
The Scheme was subject to a triennial actuarial valuation, carried out by Towers Watson, at 17 March 2012 on the projected
unit basis. The results of this valuation were finalised in August 2013 and a recovery plan agreed. Under the Scheme's
recovery plan, the Company will pay annual deficit contributions of £49 million per annum for eight consecutive financial
years to 2020. This plan is reviewed once every three years, with the next valuation effective date in March 2015 and
statutory completion date in June 2016.
The retirement benefit obligations at the year-end have been calculated by KPMG, as actuarial advisers to the Group, using
the projected unit credit method and based on adjusting the position at 17 March 2012 for known events and changes in
market conditions as allowed under IAS 19.
The unfunded pension liability is unwound when each employee reaches retirement and takes their pension from the Group
payroll or is crystallised in the event of an employee leaving or retiring and choosing to take the provision as a one-off
cash payment.
The amounts recognised in the balance sheet are as follows:
2015 2014
£m £m
Present value of funded obligations (7,680) (6,855)
Fair value of plan assets 6,988 6,131
(692) (724)
Present value of unfunded obligations (16) (13)
Retirement benefit obligations (708) (737)
Deferred income tax asset 57 58
Net retirement benefit obligations (651) (679)
The retirement benefit obligations and the associated deferred income tax balance are shown within different line items on
the face of the balance sheet.
The principal actuarial assumptions used at the balance sheet date are as follows:
2015 2014
% %
Discount rate 3.50 4.25
Inflation rate - RPI 3.00 3.40
Inflation rate - CPI 2.00 2.40
Future salary increases n/a n/a
Future pension increases 1.80 - 2.85 2.15 - 3.20
12 Post balance sheet event
On 5 May 2015, the Group refinanced its unsecured £1,150 million syndicated revolving credit facility due 2019 with a new
secured recourse £1,150 million syndicated revolving credit facility due 2020. The new secured corporate facility is the
same size as, and has substantially similar economic terms to, the previous unsecured facility, with the structure also
maintained on a dual tranche basis (a £500 million Facility (A) due April 2018 and £650 million Facility (B) due April
2020). The new facility, which is secured against 60 supermarket properties with a net book value of £1.4 billion, contains
no financial covenants.
On 5 May 2015, the Group amended its £200 million unsecured bank loan due November 2019 and its E50 million unsecured bank
loan due September 2016 into a secured recourse £200 million bank loan due November 2019 and a secured recourse E50 million
bank loan due September 2016. The amended bank loans, which are secured against ten supermarket properties with a net book
value of £0.2 billion, contain no financial covenants.
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on J Sainsbury
See all newsREG - Sainsbury(J) PLC - Transaction in Own Shares
AnnouncementREG - Sainsbury(J) PLC - Transaction in Own Shares
AnnouncementREG - Sainsbury(J) PLC - Transaction in Own Shares
AnnouncementREG - Sainsbury(J) PLC - Trading Statement
AnnouncementREG - Sainsbury(J) PLC - Transaction in Own Shares
Announcement