preliminary results 52 weeks ended 1 february 2009

1. Preliminary Results52 weeks ended 1 February 2009 12 March 2009

4. Overview 2008/09 Continuing growth in sales and profits Underlying profit* up 13% to £636m Total dividend of 5.8p – up 21% Board changes Roger Owen – retired January 2009 Philip Cox – appointed with effect from 1 April 2009 Optimisation Plan going well

6. Financial summary

7. Underlying earnings

8. Operating profit

9. Turnover bridge

10. Cash flow

11. Optimisation plan 2 - status

12. Capital plans

13.

14. The Morrisons journey 2006 Morrisons/Safeway Strong retail skills Consumer perception still weak 2007 strategy: ‘Food specialist for everyone’ Optimisation Plan target: improve operating margin whilst shaping for growth Focus on fresh, value and service 2008 year of strong growth Our performance brought us closer to our vision

15. Sales performance

16. Regional performance

17. Customers

18. Customers

19. Category performance

20. Optimisation plan update – key building blocks Manufacturing Spalding abattoir opened in Q2 Vegetable pack house at Flaxby extended and re-opened in Q4 Completed Distribution Drive time planning systems implemented New South East RDC in Sittingbourne operational by end of calendar year 2009 New South West RDC in Bridgewater, Somerset planning application filed December 2008 On track

21. Optimisation plan update – key building blocks New retail space 2008/09: 9 stores opened 207k sq. ft. of net new sales space 90k sq. ft. of net sales extensions 3 year programme: 1m sq. ft. by Jan 2010

22. Optimisation plan update – key building blocks IT system replacement Development team is in place Payroll and HR systems were launched in Q4 Roll out of new financial systems, distribution systems and EPOS systems this year

23. Optimisation plan update – key building blocks In-store Finished by July 2008: range segmentation refresh shelf-ready packaging Rollout started: IQM system self scan checkouts

24. Optimisation plan update – key building blocks Range Development ‘Value’

25. Optimisation plan update – key building blocks CSR We are the only grocery retailer that has been awarded the new Carbon Trust Standard for carbon reduction

26. Optimisation plan update The target “Strongly improve operating margin whilst shaping for growth” Where we are now improving our operating margin shaping building blocks growing like for like sales

27. Current market background Food market so far resilient to recession Consumers switching stores and products more than ever before to help their budgets stretch further Consumers choosing to dine and cook more at home Consumers buying more convenience food Consumers interested in treats Consumers still care about fresh and healthy food but less interested in ethical foods

28. Morrisons points of difference Vertical integration Industry leading availability Flexibility/competitive pricing Industry leading food deals

29. Morrisons points of difference Market Street Fresh Food Academy Fresh value food products

30. Opportunities – new customers Our perception among new customers has soared over the last 2 years New customers like our unique Market Street shopping experience, our fresh food and the great value we offer We have strongly grown customer numbers but 40% (10m) of households have not yet been in one of our refreshed stores

31. Opportunities - new locations 382 stores (11.1m sq. ft.) We are a national company but we are not yet nationwide There are approximately 25m households living in the UK 16.6m (66%) households live within 15 minutes drive of our stores

32. Opportunities - smaller stores 60 stores (11k - 20k sq. ft.) - 16% ofour estate Highest sales density growth Higher fresh food participation than standard stores Recently developed Northallerton, Blandford, Gorleston & Clifton (all 11k-18k sq. ft.) with full Market Street Bespoke range and segmentation Out of town, edge of town and in town

33. Potential new representation to become nationwide We now have the flexibility to operate a wider range of stores (10k – 40k+ sq. ft.) We can now reach many more places and households The blue areas represent more than 100 potential new sites for bigger and smaller stores

34. Our focus Morrisons is currently under represented in key areas nationwide

35. Integration of Co-op/Somerfield stores in 2009/10 Co-op/Somerfield stores c.500k sq. ft. of new sales space this year An extra 1.2m (5%) households within 15 mins drive of these stores Largest number in the South East, Greater London & the South West We will use the knowledge from our recent rebuilds, spending £2.5m per store

36. Space growth We will accelerate growth from 350k to 500k sq. ft. in 2010/11

37. Summary Strong LFL sales exc. fuel up 7.9% Underlying profit up 13% Healthy cash flow and strong balance sheet Dividend growth of 21% Morrisons is now embraced by a wider audience Our strategy is working for us Flexibility to develop a wider range of stores Opportunity to move from:

40. Balance sheet

41. Stores analysis

42. Depreciation H2 06/07 & H1 07/08 – accelerated depreciation of branded assets H2 07/08 – Safeway structural assets fully depreciated H1 08/09 – business as usual H2 08/09 – Optimisation Plan investments accelerating

43. Recognition Industry recognition