John Lewis Partnership plc annual report and accounts 2012

Five year record – years ended January

2012 £m 2011 £m 2010 £m 2009 £m 2008 £m

Gross sales

Waitrose 5,400.4  4,974.6 4,532.3 4,156.4 3,950.1

John Lewis 3,329.1  3,231.7  2,889.2  2,811.1  2,812.7

Gross sales

Sales excluding VAT(1)

Waitrose 5,072.3 4,699.9 4,317.2 3,940.1 3,737.2

John Lewis Sales excluding VAT 2,792.0 2,763.9 2,519.5 2,415.8 2,404.9

Revenue

Waitrose 5,072.3 4,699.9 4,317.2 3,940.1 3,737.2

John Lewis 2,686.3 2,661.9 2,417.4 2,327.1 2,315.0

Revenue

Operating profit(2)(3)

Waitrose 260.6 274.9 266.8 214.5 226.2

John Lewis 157.9 198.4 160.4 140.6 192.0

Corporate and other(4) (25.2) (42.3) (37.5) (31.8) (26.9)

Operating profit

Net finance costs (39.5) (63.1) (83.1) (43.7) (11.5)

Share of post tax losses of associate (Ocado) – – – – (8.0)

Exceptional gain in respect of associate (Ocado) – – – 127.4 8.0

Profit before Partnership

bonus and tax 353.8 367.9 306.6 407.0 379.8

Taxation (52.4) (46.0) (48.8) (48.1) (59.4)

Net profit available for profit

sharing and retention in the business 301.4 321.9 257.8 358.9 320.4

Partnership bonus (165.2) (194.5) (151.3) (125.4) (181.1)

As a percentage of eligible pay 14% 18% 15% 13% 20%

Discontinued operations – – – – (9.1)

Profit for the year retained in the business 136.2 127.4 106.5 233.5 130.2

Net assets 2,008.9  2,072.8  1,704.5  1,722.8  1,683.9

Pay 1,096.3 1,021.7 940.4 908.0 864.8

Number of employees at year end 80,900 76,500 72,400 68,300 69,300

Average number of employees 78,700 74,800 70,000 68,700 68,200

including part-time employees 42,900 40,800 37,300 35,900 36,700

Average number of FTEs 51,100 48,500 45,900 45,100 44,900

*53 week year.

(1) (2) (3)

Sales excluding VAT are gross sales net of value added tax.

The comparatives have been re-presented in respect of John Lewis Insurance operations to be on a consistent basis to the current year.

The basis of allocation of pension costs to the divisions was changed for 2012 and is charged as a fixed proportion of total pay based on the estimated long-term costs of providing the benefit, with the differences between these costs and the total annual pension operating costs recognised in Corporate and other. This was income of £16.8m in 2012, which is principally due to market driven volatility.

(4) 5

Corporate and other costs are principally corporate and shared service overheads, transformation costs and the Partnership Services division set up costs.