Tesco 2013 Annual Report Download - page 5

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1
Tesco PLC Annual Report and Financial Statements 2013
OVERVIEW BUSINESS REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTS
Chairman’s statement
This time last year, I referred to the business going through
a transition and said:
“We will continue in 2012/13 to address long-standing business
issues in the UK and elsewhere in order to secure future prosperity
as well as ensuring that our financial and human resources are
developed and deployed where they are able most effectively
to generate future growth and returns.”
This is what has been done. It has been a year of addressing long-
standing business issues; bedding in management and governance
change; and laying the foundations for sustainable future growth.
In all these areas I believe the Company has responded with energy,
skill and application and we have made progress.
Business issues
One of the greatest challenges for a business is to face itself
honestly. It is also the mark of a quality business that it can do so,
since the capacity to name issues is the essential first step towards
addressing them.
The decisions to seek a sale of the US business and to call an end
to the UK space race in large stores reflect this. As with the decision
last year to reinvest in our UK business, they reflected a long, hard
look at where the business needs to devote its energy and resources
to create sustainable value; and a willingness to face up to tough
decisions to do this.
Some of these decisions had painful short-term consequences.
The early signs are that the decision to reinvest in the UK is
strengthening the business and we believe the steps we have
taken in the US and in respect to UK property will similarly underpin
a sustainable, profitable future, notwithstanding the accounting
write-downs we have had to take this year as a consequence.
Bedding in management and governance change
The year has also seen a generational transition in management.
This is not a surprise when there has been a relatively unchanged
management team in place for a substantial time and we are
fortunate in Tesco to have a substantial depth of talent to draw on
from around the world. It is striking how many of the executives
taking on new and enhanced responsibilities bring international as
well as extensive UK experience to their roles, reflecting the breadth
of Tesco’s business.
A largely new Executive Committee has been developed under
Philip Clarke’s leadership. Many talented, and widely experienced,
younger executives are getting to grips with new responsibilities
with skill and enthusiasm. Similarly in the UK business, a substantially
new leadership team with a wide diversity of experience and skills
is in place under a new Managing Director.
“ It has been a year of addressing long-standing
business issues; bedding in management and
governance change; and laying the foundations
for sustainable future growth. In all these
areas I believe the Company has responded
with energy, skill and application and we have
made progress.”
Sir Richard Broadbent Chairman
Visit www.tescoplc.com/ar2013 to hear
more from Sir Richard Broadbent and
other members of the leadership team.