AGM Statement

Sainsbury(J) PLC
12 July 2006



12 July 2006


J Sainsbury plc 2006 AGM Statement

In his opening remarks today at Sainsbury's AGM, Philip Hampton, chairman, will
introduce the changes to the Board since the last AGM to attending shareholders.
This includes the appointment of Darren Shapland, chief financial officer, John
McAdam as senior independent director, and Anna Ford as a non-executive
director. In addition Philip will confirm that, as previously announced, Bridget
Macaskill, non-executive director will step down today.

Commenting on the results for 2005/06 Philip will say, 'At last year's meeting I
said how I believed that Sainsbury's, with its passion for food, it's history of
quality and innovation and its strong ethical approach, was a company worth
fighting for and I think our performance over the last financial year has
increased confidence in our prospects among customers, colleagues and, I
believe, among shareholders as well'.

The proposed dividend is 5.85 pence per share, taking the full year dividend to
8.00 pence per share, up 2.6 per cent, broadly in line with inflation. Dividend
cover, the measure that indicates a company's ability to pay the dividend, now
stands at 1.3 times and the objective remains to restore it to 1.5 times.

The plan to Make Sainsbury's Great Again requires an improvement in the customer
offer and a recovering sales performance. To date, including sales growth so far
this year, the company has now delivered £1 billion towards the £2.5 billion
target and it is expected that over the next 12 to 24 months improved sales
coupled with reduced costs will drive improved profitability.  While the plan is
on track and a good start has been made it is recognised that there is still
much to do.

A new incentive framework will be put to the meeting. The Board believes that
incentives are vital to the delivery of results and that those results should be
closely linked to the interests of shareholders. The 2006 Long Term Incentive
Plan is designed to retain key talent for the future, including 1,000 senior
managers and all supermarket store managers, for the long-term success of the
business. The targets require increased return on capital employed and growth in
cash flow per share as detailed in the Notice of Meeting. A new Deferred Annual
Bonus Plan is also being proposed for the most senior management. The plan
encourages them to build a shareholding in Sainsbury's and provides rewards if
total returns to shareholders exceed those of the competitors.

Justin King, chief executive, will present the operational and financial results
for 2005/06, highlighting total sales growth (excluding petrol) of 5.8 per cent
(3.7 per cent like-for-like), the delivery of £110 million of cost savings,
which resulted in an increase in underlying profit before tax (2) of 12.2 per
cent.

At the preliminary results in May 2006, we indicated our intention to put in
place plans to accelerate the store development programme and increase the
opening of new store space.  Sainsbury's is pleased to announce that it has
agreed to acquire the first, a 35,000 square foot sales area, food focused store
in Urmston, Manchester.  It is part of a major town centre redevelopment and
expected to open in 2008.

Sainsbury's is increasingly delivering 'great food at fair prices' and the
company's heritage and considerable strength in providing healthy, safe and
fresh food is increasingly important to consumers, as they become more concerned
about the quality, sourcing and integrity of the food they eat. Sainsbury's '
Wheel of Health' nutritional labelling has been well received and is enabling
customers to make more informed decisions on the products they buy.

In closing the AGM, Philip will say, 'I thank you for your continued support and
for attending. I hope that we will see you at the Sport Relief run this weekend
or in our stores supporting Sport Relief'.

Enquiries:

Investor Relations                                Media

Lynda Ashton  [phone]                Pip Wood [phone]



Notes

1.         The AGM will take place at 11:00am on 12 July 2006 at The QEII
Conference Centre, Broad Sanctuary, Westminster, London SW1P 3EE.

2.        Underlying profit before tax is Profit before tax from continuing
operations before any gain or loss on the sale of properties, impairment of
goodwill, financing fair value movements and one off items that are material and
infrequent in nature.  In the current financial year, these one off items were
the Business Review costs, IT insourcing costs and debt restructuring costs.  In
the prior financial year, the one off items were the Business Review and
Transformation costs.


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