Tesco 2014 Annual Report Download - page 18

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* After 14 years’ service at Tesco, Laurie resigned as Chief Financial Officer
on 4 April 2014. He will continue to work with us until October 2014 while
a successor is appointed.
Our approach to growth and returns
We laid out this financial framework in April 2013 and it continues
to inform our decisions. The framework helps ensure an appropriate
balance of growth, returns and cash generation, and outlines what
shareholders can expect from Tesco from a financial perspective in
the medium term.
The changes we have announced to capital expenditure underpin
our commitment to this framework. This moves capital expenditure
to the bottom of our 4% down to 3.5% of sales guiderail.
This even greater focus on capital discipline will help maintain
the commitment to generate positive free cash flow, maintain a
strong balance sheet, and continue to maintain a strong dividend.
I wish Philip and the team well and am absolutely confident that
Tesco will emerge from this period of unprecedented change in
the industry stronger than ever.
Laurie Mcllwee
Chief Financial Officer*
Generate positive
free cash flow
Trading profit growth
Sustainable ROCE
Dividend growth
•Mid-singledigit
•12%to15%range
•InlinewithunderlyingEPS
•Targetcoverofmorethan2times
Allocate capital within range
of 4% down to 3.5% of sales
Maintain a strong investment
grade credit rating
Financial disciplines Guiderails
Our approach to growth and returns
Other information
Governance Financial statementsStrategic report
Tesco PLC Annual Report and Financial Statements 2014 15