Our key measures
Financial objectives
Our financial objectives are for sales growth that exceeds the market, and earnings that meet the expectations of our shareholders.
Like-for-like sales (ex-fuel) growth in excess of market
| 2007/08 | 2006/07 | 2005/06 | |
|---|---|---|---|
| % | 1.1 | 1.2 | (03) |
Adjusted normalised basic earnings per share
| 2007/08 | 2006/07 | 2005/06 | |
|---|---|---|---|
| Pence | 14.4 | 8.3 | 1.7 |
Key performance indicators
Our monthly reporting to the Board includes a number of measures that are considered essential to monitoring the performance and development of the Group. These measures have been introduced as new targets for Morrisons to become the food specialist for everyone. A selection of those are shown on this page.
Financial KPIs
| Measure | 2007/08 | 2006/07 | 2005/06 |
|---|---|---|---|
| Like for like sales (ex-fuel) | 4.6% | 5.2% | 2.4% |
| Underlying earnings per share | 14.4p | 8.3p | 1.7p |
| Dividend cover | 3.0 | 2.1 | 0.5 |
| Net debt | £543m | £772m | £1,148m |
| Capital expenditure | £410m | £269m | £655m |
| Profit before tax and property income | £580m | £331m | £54m |
| 52 week Grocery market share | 12.1% | 11.9% | 12.5% |
| Total shareholder value (Morrisons) | 204.2 | 202.8 | 125.1 |
| Total shareholder value (FTSE 100) | 200.7 | 203.0 | 180.2 |
Customer KPIs
We have tracked elements of our customer perception using Hall & Partners brand tracker, to track the effects of our advertising and whether it is working for us. We do not intend to spend our investors money just for the sake of it, we want to spent it right. Over time, a balance of measures, internal and external, will be developed around the brand values of Fresh, Value and Service.
Change in customer perception since May 2007:
| Fresh | +13% | ||
| Value | +5% | ||
| Service | +18% |
Corporate Social Responsibility KPIs
The CSR agenda is an important topic and it gives us a licence to operate. The environmental programme that we have previously outlined has set three year targets, against which we are making good progress.
Environment
Good progress is being made towards our CSR targets:
Reduction targets (%)
| Reduction | Target | |
|---|---|---|
| Carbon footprint | 25 | 36 |
| Group energy use | 5 | 8 |
| Own brand packaging | 7 | 15 |
| Carrier bags | 3 | 25 |
Society
Each year our customers and employees choose a national charity, and through fund raising events aim to raise more than £1m for that charity.
| 2007/08 Asthma UK | £1.1m | |
| 2006/07 Breast Cancer Research | £1.6m |
Commitments met
The following commitments have been met during the year:
Business
>> Support British farming through making our meat supplies exclusively British.
Society
>> All fresh fish counters certified under the Marine Stewardship Council,
>> All own brand tissue paper products certified by the Forest Stewardship Council.
Employee KPIs
Success at Morrisons relies on 117,000 colleagues delivering great service to our customers each and every day.
Employee satisfaction
In 2007, the first annual climate survey involving 9,300 employees was conducted. The results were used to help develop Core Employee Values. These are to be rolled out during 2008.
Employee stability
| 2007/08 | 2006/07 | 2005/06 | |
|---|---|---|---|
| % | 75.7 | 71.3 | 70.0 |
Definitions
Like-for-like sales (ex-fuel): Store based sales compared with the previous year, excluding the impact of new store openings, store disposals, major refurbishments and extensions.
Employee stability: Employee stability is a % of leavers against the total number of employees.
Total shareholder value: Total shareholder value is the value of £100 invested in Morrisons shares on 2 Feb 2003. The increase in value includes any dividend paid. This is measured over the past five years.
Carbon footprint: Carbon footprint is calculated using UK Government Waste Strategy Report Guidelines, as recommended by Defra.