Tesco

Tesco- Nature of Business, Ownership, Structure, Services & Markets

BUSINESS

Tesco is one of the world's leading international retailers. The company first used the trading name Tesco, in 1929, it has since expanded from food retailing to different markets and sectors like insurance, telecom, online services, clothing, consumer electronics, consumer financial services, fuel, budget software etc.

The principal activity of the Tesco group is food retailing and it has over 2,500 stores worldwide.

Year of

entry Number of

stores Sales area

(million sq ft) Planned store

openings

2006/07

(inc acquisitions)

UK 1,897 25.9 124

________________________________________

Czech Republic 1996 35 2.5 50

________________________________________

Hungary 1994 87 4.3 22

________________________________________

Poland 1995 105 4.8 39

________________________________________

Rep. of Ireland 1997 91 2.1 8

________________________________________

Slovakia 1996 37 2.3 12

________________________________________

Turkey 2003 8 0.6 22

________________________________________

China 2004 39 3.5 12

________________________________________

Japan 2003 111 0.3 11

________________________________________

Malaysia 2001 13 0.9 4

________________________________________

South Korea 1999 62 4.1 32

________________________________________

Thailand 1998 219 6.8 180

________________________________________

2,710 58.7 516

________________________________________

(correct to end of last financial year - 25 Feb 2006)

OWNERSHIP

Tesco PLC is a publicly owned company its major shareholders as of 2004 were

1. Barclays Global Investors (3.82%)

2. Legal and General (2.79%)

3. Schroder Investment Mgt Ltd (2.87%)

4. State Street Global Advisors (2.73%)

5. Axa Investment Managers (2.63%)

6. Threadneedle Investments (2.33%)

7. Scottish Widows (2.08%)

8. M & G Investment Mgt Ltd (1.99%)

9. Morley Fund Management (1.88%)

10. UBS Global Asset Mgt (1.73%)

STRUCTURE

Tesco's Board comprises six Executive Directors and seven independent Non-Executive Directors, in addition to the Non-executive Chairman:

David Reid

Non-executive Chairman

Sir Terry Leahy

Chief Executive

Richard Brasher

Commercial and Trading Director

Philip Clarke

International and IT Director

Andrew Higginson

Finance and Strategy Director

Tim Mason

Group Marketing Director and Chief Executive USA

David Potts

Retail and Logistics Director

Rodney Chase CBE

Deputy Chairman and Senior Non-executive

Charles Allen CBE

Non-executive Director

Karen Cook

Non-executive Director

E Mervyn Davies CBE

Non-executive Director

Dr Harald Einsmann

Non-executive Director

Ken Hydon

Non-executive Director

Carolyn McCall

Non-executive Director

Lucy Neville-Rolfe CMG

Executive Director Corporate and legal affairs

The structure of the Board and the integrity of the individual Directors ensure that no one individual or group dominates the decision-making process.

SERVICES & MARKETS

Tesco provides various services to its customers besides food retailing, these services include :

* Life insurance

* Home insurance

* Instant travel insurance

* Instant breakdown cover

* Personal finance

* Telecom

* Personal shopper

* Deliveries

* Electrical goods