Lse GRG 2020

20
20
GREGGS PLC Annual Report & Accounts 2020
BRINGING OUT
THE BEST IN US
STRATEGIC REPORT DIRECTORS’ REPORT ACCOUNTS
INTRODUCTION
In a year like no other, Strategic Report

2020 Highlights 2
the Covid-19 crisis
Annual Report and Accounts 2020

At a glance 3
Year in review 6
has, in many ways

Business model 8
Chairman’s statement 9
Chief Executive’s report 12
demonstrated the
Key performance indicators 18
Non-financial key
performance indicators 20
strength of Greggs. Gender of workforce

Our strategy in action
Supporting our local communities
23
24
32
The Greggs Pledge 34
It has shown the resilience of our business model, Financial Review 41
but most of all the strength of our people who have Risk management 45
worked hard throughout to maintain an essential service Viability statement 46
providing takeaway food to customers unable to work Principal risks and uncertainties 47
from home, many of whom were themselves key workers. Stakeholder engagement 51
I would like to take this opportunity to thank all of our
people, who can be proud of the part we played in our
nation’s time of need.
Directors’ Report
Board of Directors and Secretary 54
Greggs is well placed to participate in the recovery from Governance report 57
the pandemic and has demonstrated its resilience and Audit Committee report 71
capability to operate under such challenging conditions. Directors’ remuneration report 79
With good liquidity and growing digital capabilities Greggs Statement of Directors’
is an attractive proposition that can grow further in new responsibilities102
locations, channels and dayparts. These opportunities
will benefit all of our stakeholders in the years to come. Accounts
Independent auditor’s report 104
Consolidated income statement 112
Continued on the next page

Consolidated statement of
comprehensive income 112
Balance sheets 113
Statements of changes in equity 114
Greggs plc
Statements of cashflows 118

Roger Whiteside OBE, Chief Executive Notes to the consolidated accounts 120
16 March 2021 Ten-year history 167
1 Secretary and advisers 169

2020 HIGHLIGHTS
Covid-secure operating Key financial highlights

model established.
Total sales
Shop and supply chain operations adapted
to safeguard team members and customers
while operating during Covid-19.
READ MORE ON PAGES 13-14
£811.3m
-30.5%
2019: £1,167.9m
Company-managed shop like-for-like (LFL) sales growth
Multi-channel development
-36.2%
2019: 9.2%
strategy accelerated.
Pre-tax loss
Delivery and wholesale channels providing
alternative routes to access Greggs
products, with delivery contributing
an increasing proportion of total sales.
£13.7m
2019: profit before tax £108.3m
Click + Collect rolled out across entire
estate and delivery made available in Diluted loss per share
12.9p
more than 600 shops.
2019: earnings per share 85.0p

The Greggs
Pledge launched. Return on capital employed
Ten sustainability commitments to continue
to develop the business in a responsible
manner over the next five years and beyond.
-2.4%
2019: 19.0%

Greggs plc
Detailed calculations of Alternative Performance Measures, not

otherwise shown in the income statements and related notes,
are shown on page 168.
2
AT A GLANCE OUR STRATEGIC PILLARS
With ownership of our supply chain, multiple service Great tasting, freshly prepared food

channels for our customers, and over 2,000 shops You cannot beat freshly baked, freshly prepared
nationwide, we are in a unique position to make great food. With our great flavours, responsibly-sourced
tasting, freshly prepared food accessible to everyone. ingredients, consistent quality and outstanding
Staying open to serve under Covid-secure conditions value – our food-to-go leads the way.
showed the important role we play in providing READ MORE ON PAGES 24-25
food-on-the-go to all types of people, as they go about

their daily lives as best they can, in difficult circumstances.
Best customer experience

Our purpose Fast and friendly service is a key reason why customers
To make great tasting,

choose Greggs. Great service is not an easy thing to deliver
under pressure, and our shop teams do an amazing job.
Through Greggs Rewards, we are able to build long-lasting
freshly prepared food relationships with our customers and reward their loyalty.
accessible to everyone.
Competitive supply chain
Our vision By owning our supply chain, we can make
To be the customers’ great tasting, freshly prepared food

accessible to everyone.
favourite for food-on-

the-go.

First class support teams
We’ve invested heavily in leading-edge systems. They
Greggs plc
equip our support teams to provide the best service to

their colleagues and ultimately, our customers.
READ MORE ON PAGE 31
3
AT A GLANCE CONTINUED
Our sustainability commitments Our culture and values

It’s our duty as a responsible business to stand for more than just Our people are what makes our business successful. We aim to provide them with a
profit. Launched in February 2021, our first, full sustainability great place to work, where they feel valued. Our values commit us to being friendly,
inclusive, honest, respectful, hard-working and appreciative.
report, The Greggs Pledge, is about how we can do more to
help people, protect the planet, and work with our partners to It’s our culture and values that set us apart. And while summarising our unique culture
change the world for the better. Based on the UN’s Sustainable ‘Being Greggs’ is no easy task, simply put – we love what we do, we have fun and we
Development Goals, The Greggs Pledge commits us to achieving welcome everyone. We’re hard-working, but above all else we’re family; and it doesn’t
the following goals by 2025: matter who you are, where you’re from or what your favourite bake is… once you walk
into one of our shops, you’re family too.
1. We will support 1,000 school Breakfast Clubs providing some 70,000 meals each
school day.
2. We will create 25 per cent less food waste than in 2018 and will continue to work
towards 100 per cent of surplus food going to those most in need.
3. We will have 50 Greggs Outlet shops providing affordable food in areas of social
deprivation, with a share of profits given to local community organisations.
4. 30 per cent of the items on our shelves will be healthier choices and we will
attract customers through education and promotions.
5. We will be on our way to achieving carbon neutrality by using 100 per cent
renewable energy across all of our operations.
6. 25 per cent of our shops will feature elements from our Eco-Shop, ‘shop of the
future’ design.
7. We will use 25 per cent less packaging, by weight, than in 2019, and any remaining
packaging will be made from material that is widely recycled.
8. Our workforce will reflect the communities we serve.
9. We will have a robust Responsible Sourcing Strategy in place and will report
annually on progress towards our targets.
10. We will secure and maintain Tier 1 in the BBFAW Animal Welfare standard.

MORE ABOUT THE GREGGS PLEDGE ON PAGES 34-40.
TO VIEW FULL REPORT, HTTPS://CORPORATE.GREGGS.CO.UK/RESPONSIBILITY/THE-GREGGS-PLEDGE.
Greggs plc
4
AT A GLANCE CONTINUED
Our stakeholders How we measure our performance

Maintaining good relationships with our essential stakeholders is key to what we Constant monitoring of how we meet our objectives and challenges is vital to
do. Our stakeholder family includes customers, colleagues, investors, suppliers, success. Naturally, we look at financial performance through our principal KPIs,
and of course, the communities that we serve. but doing business in the right way is measured too, with wide-ranging balanced
scorecards examining every aspect of what we do.
CUSTOMERS COLLEAGUES SUPPLIERS
SHAREHOLDERS LENDERS COMMUNITIES

Greggs plc
5
YEAR IN REVIEW
2020’s challenges

brought out the
best in our
people, our
Full steam ahead with Next Generation Greggs January
Following successful trials in 2019, we launched our multi-
channel, digital transformation programme in January:
teams and
‘Next Generation Greggs’ – not knowing that it was about
to become even more important.
our business.

Our partnership with Just Eat July
We rolled out our partnership with
Greggs plc
Just Eat at breakneck speed to over

From shop openings and award-winning product launches, the roll out of 600 shops nationwide, meaning more
delivery services and Click + Collect to record-breaking sales with Iceland, and more customers can enjoy Greggs
there is a lot to be proud of. from the comfort of their own homes.
6
YEAR IN REVIEW CONTINUED
Vegan Victory! October

Hot on the heels of the success of our
award-winning Vegan Sausage Roll,
hailed PETA’s ‘Product Launch of the
Year’ in 2019, we launched our Vegan
Steak Bake in 2020. It’s proving a
welcome addition to our growing vegan
range, so much so that PETA declared
it the ‘Best Vegan Pasty’ 2020.
New Shops September

We reignited our shop opening programme later in the
year; focusing mainly on areas where we can provide easy
access for customers in cars, including new concessions
in Asda and Tesco, in addition to retail parks and petrol
forecourts with our franchise partners.

Click + Collect October Bake your own December
Our long-standing partnership with Iceland saw record-
Greggs plc
2020 saw, within a matter of weeks, the rapid development and launch
of our Click + Collect service, providing a safe, convenient and socially- breaking sales in 2020 as many more customers baked
distanced way to shop. Successful, early trials meant we were able to their Greggs favourites at home.
7 roll the service out to all company-managed shops in the Autumn.

BUSINESS MODEL
What we do

shutterstock_1168376416 shutterstock_1168376416
shutterstock_1404846524
We are a modern food-on-the-go
retailer that sells millions
shutterstock_1168376416 of sausage rolls every
shutterstock_1404846524 week (and lots of other great products
too). shutterstock_1168376416
shutterstock_559474990 shutterstock_1404846524
shutterstock_559474990 shutterstock_559474990 s
shutterstock_758629798 shutterstock_758629798 shutterstock_758629798
shutterstock_1058893637 shutterstock_758629798 shutterstock_1058893637
shutterstock_755242108 shutterstock_1058893637shutterstock_758629798 shutterstock_1058893637
shutterstock_755242108 shutterstock_755242108 shutterstock_1058893637 shutterstock_755242108 shutterstock_755242108
Manufacturing Logistics Customer channels People Customer relationships

We make great tasting, freshly We move our products from our We now have over 2,000 modern shops We have more than 21,500 amazing Through our award-winning loyalty
prepared food, that customers bakeries to our shops ourselves, across the UK, including 328 with people, working together to provide scheme, Greggs Rewards, we are
can trust, in our own bakeries. which helps us to keep our prices franchise partners, located where our our customers with the best building long-term connections
as low as possible. customers want us to be. Our delivery experience, day in, day out. with our customers.
and wholesale partnerships mean more
and more customers can enjoy Greggs
from the comfort of their own homes.
What makes us different
We are a much-loved and trusted brand that has been making life taste better for our customers, in many ways, for over 80 years.
Purpose Quality Convenience Value Service

To make good, freshly prepared food We want our products We want to be able to serve We offer great value in an extremely We provide customers with fast
accessible to everyone. to be the best they can be. customers wherever, whenever competitive market place. and friendly service, fixing issues
and however they choose. without a fuss and rewarding them
for their loyalty.
The Greggs Pledge: Dedicated to Doing Good

Stronger, Healthier Communities Safer Planet Better Business
Greggs plc
We pledge to play our part in improving the We pledge to become a carbon neutral, We pledge to increase the diversity of our
nation’s diet by helping to tackle obesity, providing zero waste business. workforce, and to use our purchasing power
free breakfasts to school children, and giving responsibly, with the aim of making things
surplus food to those who need it most. better in our supply chain.
8
CHAIRMAN’S STATEMENT
Greggs has

proved itself
agile and
adaptable
in times of
uncertainty.
Greggs has risen to the most formidable of challenges in

2020 and, while it has faced setbacks, is recovering well.
We have worked hard to do the right thing by our people,
communities and other stakeholders, and have been given
Greggs plc
great support in return.
9
CHAIRMAN’S STATEMENT CONTINUED
Strategic plans have, if anything, Government support has been essential to mitigate the Our colleagues have proved, once again, what a wonderful

accelerated and as lockdowns ease we impact of Covid-19 and protect as many jobs as possible team they are. However it has been sad to say goodbye to
through this period. Shareholders have made a significant some as we made reductions in the number employed to
are now looking towards growth again contribution, forgoing dividends and accepting reduced reflect the reality of the trading environment and to ensure
with an emerging multi-channel offering. investment in the business, and there has been terrific that Greggs maintains its competitive edge. To them, and
Our colleagues have shown remarkable support from our employees. The Board has been very to those who continue to provide great service to our
resilience and tenacity whilst ensuring we focused on balancing the needs of all the Company’s customers every day, I would like to say “thank you” on
have provided the best possible customer stakeholders as it has made decisions this year and I am behalf of the Company and its shareholders.
service in very difficult conditions. We move proud of the manner in which it has done so. We have also
balanced the short-term tactical needs of the business The Board
into 2021 with optimism and ambition. with protecting our long-term ambition and adapting our We have been fortunate to have a period of stability on
strategy to market changes. the Board at a time when experience of the business was
Overview
of great importance to our stewardship role. The Board
2020 was not the year that any of us planned for, and has
Our people and values has provided its support to the Executive, who had to make
required the Board and Executive team to work together
This crisis has, inevitably, put great pressure on the whole many difficult decisions, often in areas that have been new
to protect the business and the interests of its many
Greggs team. The collegiate nature of our people has come to most of us.
stakeholders. Greggs started the year performing
to the fore, standing by each other and the communities
very strongly but temporarily closed the shop estate in
that we serve. There have been many sacrifices, but we Like so many we have adapted to communicating virtually.
March 2020 as a consequence of the Covid-19 outbreak.
have stayed true to the values that underpin the great This has worked well, making it easier to be in regular
Greggs sought debt financing to support its short-term
culture that exists within Greggs. contact with management. The normal processes by which
liquidity requirements, which was forthcoming from both
we listen to the views of employees have been challenged
government and commercial sources due to the financial
From the initial closure period until the half year we by the inability to meet in person, but we have found virtual
strength of the business and its significant contribution
maintained full pay for our furloughed colleagues. I am forums to be a good alternative under the circumstances.
to the UK economy. Loans from the Bank of England under
grateful to the management team, who went without their
the CCFF facility were fully repaid by the end of the year and
pay award, and to the Executive and my Board colleagues Risk management has clearly been a critical area for the
the business finished the year with net cash in the bank.
who volunteered reductions in their salaries and fees to Board in 2020. In addition to the Covid-related risks the
protect the business in the most difficult period of 2020. Board scrutinised the Company’s developments in digital
The Company’s trading performance since reopening its
channels and reviewed its preparedness for the possibility
shops in the middle of 2020 has been strong in the context
The communities that we rely on have needed additional of a ‘no deal’ exit from the European Union. Further details
of prevailing mobility restrictions. Greggs has a broad base
support in 2020 and the Greggs Foundation has played a of the Board’s work are included in the governance and
of shops in locations that have remained accessible to

leading role, increasing its investment in the provision of committee sections of the annual report.
customers who rely on us when they need to be away from
hardship relief grants and offering extra help to hard-hit
the home. For those at home we have accelerated our
community organisations. The Trustees of the Greggs Greggs supports diversity and inclusion initiatives across
digital offering, with delivery now making a significant
Foundation have drawn on its reserves to do so, and this the business and on the Board and we expect to see
Greggs plc
contribution to company-managed shop sales.

has leveraged additional funding from others who tangible progress during 2021 as we develop our plans to
recognise the team’s ability to deliver help to the heart grow as a diverse company that is representative of the
With lower-than-normal sales levels Greggs made a loss
of communities. communities we serve.
in 2020; the first time in its history as a listed business.
10
CHAIRMAN’S STATEMENT CONTINUED
We continue to plan for succession for both Executive A year ago we anticipated the publication of ‘The Greggs

and Non-Executive directors. Normally, under the UK Pledge’, our vision of how we will continue to develop the
Corporate Governance Code, I would have been expected business in a responsible manner. This was delayed by the
to step down in 2020 but the Board has asked me to remain need to focus on the immediate challenges of 2020 but
in place to provide continuity of leadership during a period I am delighted that it has now been launched. It describes
when we are likely to address CEO succession as Roger our targets for responsible business over the longer term
Whiteside (62) approaches retirement age. We are grateful and will be an important part of Greggs’ competitive
to Roger for his willingness to be flexible regarding his positioning and contribution to society in the years ahead.
retirement date to ensure the best possible succession Our Chief Executive Roger Whiteside outlines the key
and transition process. elements of this in his report.
Dividend Greggs is a great business and we are confident for

The planned final dividend for 2019 was a casualty of the the future.
need to preserve cash in the spring of 2020 and it has not
been possible or appropriate to pay any further dividends Ian Durant
since. In order to recommence a dividend distribution, the Chairman
Company will need to return to a level of profitability and 16 March 2021
cash generation sufficient to support its investment
programme whilst maintaining appropriate liquidity.
Looking ahead
Greggs is a business which has proved itself agile and
adaptable to operating in times of great uncertainty whilst
continuing to make strategic progress. Digital channels
are increasingly contributing to the recovery of sales levels
and opportunities for estate growth appear to be as good,
if not better, than they were a year ago.

Greggs plc
11
CHIEF EXECUTIVE’S REPORT
Greggs has

demonstrated
its resilience and
capability to
operate under
such challenging
conditions.

Greggs plc
In a year like no other I believe that the Covid-19 crisis

has in many ways demonstrated the strength of Greggs.
12
CHIEF EXECUTIVE’S REPORT CONTINUED
It has shown the resilience of our business in common with others in our sector, we should temporarily STRATEGIC HIGHLIGHTS

model, but most of all the strength of our close our shops, a move that had support from our
colleagues and customers. That’s when we saw our
people who have worked hard throughout colleagues across the country pull out all the stops to close
–– Multi-channel development strategy
to maintain an essential service providing accelerated: delivery and wholesale
down our shops and supply chain safely, and to redistribute
takeaway food to customers unable to work channels providing alternative routes to
our unused food to those who would benefit from it the most,
access Greggs products. Click + Collect
from home, many of whom were themselves whilst also making sure that we thanked our NHS heroes with
rolled out across the entire estate and
key workers. I would like to take this free hot drinks and treats. We made many heroes of our
delivery made available in over 600 shops.
opportunity to thank all of our people, who own as colleagues worked tirelessly to move the food to
–– Shop opening pipeline reactivated:
local charities from our shops and distribution centres.
can be proud of the part we played in our demonstrating confidence in long-term
nation’s time of need. growth opportunity.
Securing our financial position
–– Covid-secure operating model
Having made the decision to close we moved quickly to
Greggs began the new year with exceptional momentum established: shop and supply chain
secure our financial position. We immediately accessed
following a record-breaking 2019. Strong growth in operations adapted to safeguard team
the support that the Government made available in the
customer numbers continued into January and February, members and customers while operating
form of the Coronavirus Job Retention Scheme (CJRS)
marred only by our first ever flood at our Welsh bakery during Covid-19.
and topped this up to full pay for our colleagues whilst our
and logistics site. This gave us our first taste of crisis –– Resilience through breadth of shop estate
shops were closed. Cash preservation was critical and we
management in the year – little did we know then of what and customer base: variety and reach of
acted quickly to stop dividend payments to shareholders,
was to come. shop estate, in locations accessible
pause new shop openings and capital investment projects,
to customers who need to be away from
begin negotiating rent reductions, and gave up the
Safety first the home.
management pay award alongside Directors taking
When the Covid-19 crisis began in March we quickly –– Investment in supply chain and systems:
voluntary salary reductions. Meanwhile we successfully
prioritised safety so that we could continue providing an benefits of upgrade programmes to
accessed the Bank of England’s CCFF loan scheme as a
essential service with takeaway food. When the first national modernise the core business processes
temporary source of liquidity whilst commercial borrowing
lock down was announced the Government’s “Stay at Home” and IT systems evident as programmes
facilities were established.
safety message proved so strong that we decided that, near completion.
–– The Greggs Pledge launched:
ten sustainability commitments to
continue to develop the business in
a responsible manner over the next

five years and beyond.
Delivery sales are
9.6 per cent 3,000

Greggs plc
of company managed shop sales in the Our target number of shops

13 ten weeks to 13 March 2021. in the years ahead.
Restarting our operations and reopening our shops Financial results

Closing down our operations and shops took a matter of The Covid-19 crisis of 2020 has resulted in Greggs reporting
days, but starting everything back up again took very its first ever loss since flotation of £13.7 million before tax
careful planning by a small, dedicated team who continued (2019: profit before tax of £108.3 million).
working throughout the crisis. A massive exercise to equip
our operations to open under Covid-secure conditions Total sales fell 30.5 per cent to £811.3 million and like-for-like
saw us begin reopening in June, initially under lockdown sales in company-managed shops declined by 36.2 per cent.
conditions, as the country prepared to relax restrictions
over the summer. As we restarted our internal distribution The actions taken to secure our financial position resulted
service to shops we also took the significant step of in a £36.8 million net cash position at the end of 2020
moving to a single daily delivery, minimising the number (2019: £91.3 million), despite seeing an overall net cash
of shops receiving a delivery during opening hours. outflow of £54.5 million in the year. The addition of a new
borrowing facility has left us with a robust balance sheet
Having demonstrated that we could continue serving able to withstand further shocks.
customers safely in lockdown conditions we were
well-positioned to remain open when new restrictions Accelerating our strategic plan
returned in the winter. Our sales during the second half Whilst we cannot escape the short-term financial impact of
correlated with the differing tiers of restriction around Covid-19 on our business we have been determined to keep
the UK and demonstrated that there was demand for our our strategic plan on track. Many of the changes we have
“We launched our Next takeaway food and drinks in all conditions from customers
unable to work from home.
been observing in customer behaviour during this crisis
are trends that had previously been identified and as a
Generation Greggs While we were able to recommence trading across the

result we saw the opportunity to accelerate our strategic
development to emerge stronger in the years ahead.
programme in January shop estate in July, customer footfall has been
significantly reduced by the restrictions and Government We launched our Next Generation Greggs programme in
2020 and it is now clear support has been vital both in supporting jobs and
mitigating business losses. Once we had established the
January 2020 and it is now clear that the ambition in that
strategic plan to increase access to Greggs has become
that the ambition in that level of demand to be expected under social distancing we
took action to reduce the size of our workforce, thereby
more relevant than ever.
strategic plan to increase reducing use of the CJRS only to situations where job Best customer experience

impacts were judged to be temporary. Meanwhile we Digital technology had been identified in our plans
access to Greggs has arranged a commercial lending facility to allow us to repay as the key opportunity for Greggs to increase market
the Bank of England CCFF loan. share by increasing customer loyalty, menu choice
become more relevant and multi-channel reach.
Greggs plc
than ever.”
14
Successful trials in 2019 allowed us to move quickly under this crisis has highlighted that the diversity of our estate Our ambition to be the nation’s favourite brand for food-

Covid-19 to roll out new services nationwide including a new means we are not overly dependent on any one location on-the-go requires us to offer a varied menu suited to all
Greggs Rewards offer, Greggs Click + Collect, and delivery type and downturns in some areas are balanced by times of the day – breakfast, lunch and dinner. Our strategy
with our partners Just Eat. In a matter of months delivery improvements in others. remains to add to our existing credentials for freshly
was made available in over 600 shops and in the fourth prepared, great value, great tasting bakery food by building
quarter accounted for 5.5 per cent of company-managed Shops accessed by car have been the strongest performers our reputation for product categories with growing
shop sales. Delivery is extending our reach and taking during the Covid-19 crisis and these location types already demand in the market. The addition of new digital channels
market share and we are planning further roll out in the formed most of our new shop pipeline. This gave us the strengthens our ability to test new product areas and avoid
year ahead. confidence to restart our new shop opening programme some of the maturity costs in gaining customer support for
in the second half and we are targeting a rapid return to products not already associated with our brand.
Similarly, successful trials of our improved Greggs previously planned growth levels of circa 100 net new shops
Rewards loyalty scheme in 2019 meant that we were able for the year ahead. Work restarted in the final quarter of last year to plan for
to accelerate our plans and launch it nationwide in October. new product introductions once customer restrictions
Our development team also applied the learnings from In addition, new opportunities now exist in previously are lifted and demand conditions improve. Strategic areas
earlier trials to launch our new Click + Collect service under-represented locations such as central London and of opportunity include our coffee menu which will be
making it available to all shops by September. These two mass transport hubs where availability and rental levels extended this year alongside the rapid roll out of our
new services have been brought together in our new App will now make those locations more accessible. Similarly, fully-tested new coffee machine improving speed,
which is now being piloted ahead of launch in the second relocation opportunities to expand into bigger, better shop quality and range options.
quarter of 2021. space are expected in existing locations that will support
our continued drive to improve the quality of the estate Hot food also remains a key area of focus both for self-
Marketing continues to play a key role in driving brand and develop new opportunities with additional seating. selection in our shop fronts and increasingly from behind
awareness amongst target customer groups and we have With a strong pipeline and support from multi-channel the counter for delivery. The combination of these two
invested in a stronger team to compete in digital channels development we have raised our target for the UK estate opens the opportunity for development of our offer to
and develop our customer relationship management to 3,000 shops. compete in later day trading which we tested in trial shops
capabilities as new systems are deployed during 2021. last year and will see further extension.
In 2020 we opened 84 new shops (including 35 franchised
Our shops units) and closed 56, growing the estate to 2,078 shops The growing trend for greater dietary choice shows no
While new digital channels present opportunities to as at 2 January 2021, 328 of which are franchised shops signs of slowing. With two successful new vegan-friendly
compete for market share our shop network remains key operated by our partners. The shop estate is in good lines introduced last year we will once again be adding to
to our growth ambitions providing both convenient access condition and refurbishment costs will remain low in our existing range, offering vegan-friendly versions of

to passing customers as well as nationwide reach for the short term while we establish space and equipment our best-selling lines.
delivery and collection services. requirements for new services in our full range of formats.
Covid-19 restrictions saw increased demand in supermarkets
Existing trends towards increased flexible home working Great tasting freshly prepared food including our long-term partners Iceland. Sales of our Greggs
Greggs plc
and online shopping have seen a material acceleration Having started 2020 with the launch of a new award-winning products for home baking leapt to record levels, introducing
during this crisis and longer term we expect to see a vegan steak bake alongside our first vegan doughnut our new customers to our brand for home consumption and
further shift away from office-dependent catchments product development plans came to an abrupt stop as shops providing a platform for further development including the
15 and weaker shopping locations. Our experience during were closed and our teams were put on furlough. introduction of vegan products to the range.
“Our teams have been

Interest in healthier food choices is driving our sector- Our teams have been outstanding in managing throughout
outstanding in managing

leading standards in the provision of information to this period, coping with constantly changing shop closures
customers to enable them to make informed choices.
We have now completed successful trials in preparation
alongside managing the infection risk seen in food
manufacturing sites around the UK. throughout this period”
for the requirement to move to full labelling of sandwiches
made in shops, which is due later this year. Our ability to manage the impact of temporary site closures Roger Whiteside OBE, Chief Executive
benefited greatly from our major investment programme
Product improvements will see us make further progress over recent years in which we both centralised and
First class support teams
with salt, fat, sugar and calorie targets alongside automated manufacturing, allowing us to build and distribute
As with our supply chain, our investment in recent years
continued progress in our animal welfare standards. from stock across the country. In response to the
to modernise our core business processes and IT systems
Since 2016 we have removed 20 per cent of the sugar from requirement to minimise social contact we also radically
greatly assisted us in supporting the business as we
our pastries, yoghurts, biscuits and cakes and, over the changed our distribution operation resulting in improved
adapted to working from home, often with skeleton teams
coming four years, will reduce the calories and salt in delivery efficiency which will now benefit the business
when numbers on furlough were at their peak. Our
a third of our products to make sure that they meet or longer term. As a consequence, we have created additional
investment in modern office working tools alongside
exceed the recommendations of Public Health England. distribution capacity and are now able to postpone
business intelligence reporting has made for efficient
The options for customers will be further increased when investment at our Birmingham site, which had been
remote working. Office working remains at a minimum and
we trial custom ordering for sandwiches through digital scheduled to commence in 2021, for a number of years.
we are planning for increased flexible working to remain
channels later in the year.
for the long term once restrictions are lifted.
In addition to the tireless work involved in maintaining
Competitive supply chain supplies, our teams continued to make progress on our key
Accelerated investment in our digital capabilities has been
Even before Covid-19 arrived our supply chain teams began strategic projects which will be completed in the year ahead.
a key focus during 2020 and our IT development teams have
2020 in crisis mode having to cope, in February, with our first These include the roll out of new SAP systems to all
been fully engaged in our Next Generation Greggs programme
ever flood leading to the closure of our bakery and logistics remaining sites and commissioning of our new automated
which saw rapid roll out of digital customer channels and a
site in Wales. We could not have expected then that we would frozen distribution facility at our Balliol Park distribution
new Greggs Rewards loyalty scheme in the second half of
remain in crisis for the rest of the year and into 2021. centre in Newcastle.
the year. Progress made last year will see us launch a new
Greggs App in 2021 followed by new systems to help our
New shop openings, alongside an anticipated return to
shop teams satisfy demand in these new channels, improve
strong sales growth, will require investment in additional
the customer experience and offer new service features.
manufacturing capacity beginning with our savoury
manufacturing plant at Balliol Park where a £9 million
Alongside this work we were also able to maintain progress

programme of automation is already underway and is
on SAP deployment in our supply chain at sites in Enfield and
planned for completion later this year. Planning will also
Manchester despite Covid-19 constraints and this leaves us
commence to address our capacity needs looking forward
well positioned to complete the roll out of this programme
to our next target of 3,000 shops in the years ahead.
Greggs plc
in the year ahead.
16
The Greggs Pledge We want to help build stronger, healthier communities. Current trading and outlook

Greggs has a proud reputation of giving back. Since Even before the pandemic ravaged our economy, far too Having made good progress through the second half of
John Gregg founded the business in 1939, we have always many people were struggling with poverty and hunger in this 2020 we have made a better-than-expected start to 2021
tried to do the right thing by our people, customers, country. The Greggs Breakfast Clubs feed around 39,000 given the extent of lockdown conditions and the particular
suppliers and communities. These family values are children every school day and we will continue to grow the challenges in Scotland where our shops have been closed
at the heart of our culture. scheme. We are also doing what we can to ensure that to walk-in customers. In the ten weeks to 13 March 2021,
perfectly good food doesn’t get wasted, but instead gets company-managed shop like-for-like sales were down
Today, Greggs is a company with a national presence, to people who need it. We recognise that poor nutrition is 28.8 per cent year-on-year. Outside of Scotland,
supporting hundreds of suppliers, employing thousands another issue where we have a role to play and are doing company-managed shop like-for-like sales in the rest
of people, and serving millions of consumers. The way more to guide our customers towards healthier choices. of the UK estate were down 22.4 per cent year-on-year.
we operate affects a great many people so being a good We have seen an improving trend each week with delivery
business is more important than ever. We want to make our planet safer. sales being particularly strong in these conditions, at
The impacts of unchecked climate change would be 9.6 per cent of total company-managed shop sales in the
Following an extensive engagement exercise in 2019 we set catastrophic. We want to make Greggs a carbon neutral, zero year to date.
out last year to launch the Greggs Pledge in the form of our waste business. We actively support the BRC’s Climate Action
first full sustainability report. Unfortunately, our launch Roadmap which aims to make the UK’s retail industry net Greggs is well placed to participate in the recovery from
plan had to be put on hold but our commitment remains zero, well ahead of the Government’s 2050 target. In addition, the pandemic and has demonstrated its resilience and
undiminished, and the Greggs Pledge was launched in we are reducing our use of packaging, looking at how we can capability to operate under such challenging conditions.
February 2021. The global pandemic has reminded us all of apply ‘circular economy’ thinking to our business and working With good liquidity and growing digital capabilities Greggs
the importance of community, the power of kindness, and with our suppliers to make efficient use of resources. is an attractive proposition that can grow further in new
the value of collaboration to tackle our biggest problems. locations, channels and dayparts. These opportunities
Now, we must work together to rebuild our economies and We want to be a better business. will benefit all of our stakeholders in the years to come.
address the complex social and environmental problems The corporate world can be a powerful force for good when
that we were already grappling with. it is guided by a moral compass. As well as continuing to Roger Whiteside OBE
support our communities by paying our taxes and providing Chief Executive
The Greggs Pledge commits us to ten things that we’re thousands of fairly-paid jobs, we are redoubling our efforts 16 March 2021
doing to help make the world a better place by 2025 – to make Greggs a great place to work. We are also setting
and beyond. We arrived at these pledges by talking with high standards for what we purchase, encouraging our
our own people and our external stakeholders, and by suppliers to raise their game too.
considering the issues that are most relevant to our

business. Our pledges align with the ambitions of the We will give back to the communities that support us and
UN Sustainable Development Goals (SDGs). take less from the environment that we all rely on. I want
Greggs to play a meaningful role not just in getting Britain
We have chosen to concentrate our efforts on the back on its feet but in getting us to a better place.
Greggs plc
challenges where we think we can make the most

difference: Our separate sustainability report provides a full
description of our activities alongside measurable
17 targets we have set ourselves across all these areas.
https://corporate.greggs.co.uk/the-greggs-pledge
KEY PERFORMANCE INDICATORS
We use eight key financial performance indicators to monitor the performance of the Group against our strategy. The definition of these

KPIs and our performance over the last five years is detailed below. All of the underlying measures exclude the exceptional items detailed
in Note 4. Commentary on these KPIs is contained within the Financial Review.
Total sales growth Like-for-like sales growth Profit before tax (PBT)
-30.5% -36.2% -£13.7m

-£13.7
-30.5% 2020 -36.2% 2020 -£13.7
13.5% 9.2% 2020
2019 2019
£114.2
7.2% 2.9%
£108.3
2018 2018
2019
7.4% 3.7%
£89.8
2017 2017
7.0% 4.2% £82.6
2016 2016 2018
£81.8
£71.9
2017
£80.3
£75.1
2016
The percentage year-on-year change in total sales Compares year-on-year cash sales in our company- Reflects the performance of the Group before taxation
for the Group. managed shops, excluding any shops which opened, impacts and the underlying measure excludes any
relocated or closed in the current or prior year. Like-for- exceptional items arising in the year.
like sales growth includes selling price inflation and
excludes VAT. The impact of shop refurbishment is Following the adoption of IFRS 16 in 2019 the Group started

included in like-for-like sales growth. The calculation using PBT as a KPI rather than operating profit as PBT
of these figures can be found on page 168. includes the full cost of the Group’s property leases.
Greggs plc
Underlying
18 Including exceptional items

KEY PERFORMANCE INDICATORS CONTINUED
Net cash inflow from operating activities

Diluted earnings per share (pence) after lease payments (£m) Return on capital employed (ROCE)

-12.9p £1.5m -2.4%
-12.9p £1.5 -2.4%
-12.9p 2020 -2.4%
2020 2020
89.7p 2019 £169.5 19
19.0%
85.0p 20
20.0%
2019 2018 £136.2 2019
70.3p 25.2%
2017 £116.9
64.5p 27.4%
2018 2018
2016 £117.6
63.5p 23.7%
55.7p Operating profit adjusted for the impact of non-cash 26.9%
2017 items, working capital movements and repayment of 2017
60.8p the principal on lease liabilities. The calculation of these 26.3%
56.7p figures can be found on page 168. 28.1%
2016 2016
Calculated by dividing profit attributable to shareholders by the Calculated by dividing profit before tax by the average total
average number of dilutive outstanding shares. The underlying assets less current liabilities for the year. The underlying
measure excludes any exceptional items arising in the year. measure excludes any exceptional items arising in the year.
The calculation of these figures can be found on page 168.
Capital expenditure (£m) Liquidity (£m)
£61.6m £106.8m
Underlying
Including exceptional items
2020 £61.6 2020 £106.8
2019 £86.0 2019 £91.3

2018 £73.0 2018 £88.2
2017 £70.4 2017 £54.5

Greggs plc
2016 £80.4 2016 £46.0
The total amount incurred in the year on investment Is calculated as cash and cash equivalents plus undrawn
in fixed assets. committed facilities, taking into account required
19 minimum liquidity covenants.
NON-FINANCIAL KEY PERFORMANCE INDICATORS
Carbon footprint

We, like others, recognise the urgency Global GHG emissions data Dual emissions reporting
needed to address climate change. We In line with Companies Act 2006 (Strategic Report and Overall emissions have been presented to reflect both
Directors Report) Regulations 2013, we are reporting our location and market-based methodologies, affecting
continue to hold the Carbon Trust Standard
greenhouse gas (GHG) emissions as part of our annual both Scope 1 and Scope 2 emissions.
in recognition of our work on carbon strategic report. Our GHG reporting year is the same as our
efficiencies and our Environmental financial year from 29 December 2019 to 2 January 2021. Streamlined Energy and Carbon Reporting
Management System is certificated to In line with Streamlined Energy and Carbon Reporting (SECR)
ISO 14001:2015. In addition, we disclose We have reported on all of the emission sources which we requirements, we have also reported on the underlying
our GHG emissions through the Carbon deem ourselves to be responsible for, as required under energy used to calculate Group GHG gas emissions.
the Companies Act 2006 (Strategic Report and Directors
Disclosure Project (CDP). We continue to
Report) Regulations 2013. These sources fall within our Where original data was provided in litres of diesel, gas oil
drive efficiencies to further reduce our operational control and financial boundaries and include or petrol it has been converted to kWh. The reporting
carbon footprint in a bid to target a net emissions from manufacturing, retail and distribution sites boundary has been determined by operational control,
zero impact. In 2020, we increased our and the operation of our distribution fleet. We do not have whereby all emissions within operational control have
gross location based intensity (tonnes responsibility for any emission sources that are outside of been included within scope, i.e. Scope 1 and 2.
per £m turnover) impact by 2.14%.* our operational control. The methodology used to FULL TABLE ON PAGE 21
calculate our emissions is based on the UK Government’s
Environmental Reporting Guidance (2019) and emissions
As a result, our market-based carbon factors from UK Government’s GHG Conversion Factors
footprint for the 2020 financial year was for Company Reporting (2020).
30,122 tonnes of carbon dioxide and
equivalent gases (CO2e), with an intensity of “In 2020, we set up a
37.35 tonnes of CO2e per £million turnover,
which accounts for our efforts in generating Net Zero Taskforce to

and purchasing low-carbon energy. challenge the climate
impact of every area of
Greggs plc
*This was driven largely by the impacts of the Covid-19 pandemic such as shop
our operations and drive
20
closures, reduced and phased operations required in manufacturing sites and
reduced sales. action to reduce it.”
NON-FINANCIAL KEY PERFORMANCE INDICATORS CONTINUED
Current reporting year 2020 Comparison year 2019 Base year (2015)

(tonnes of CO2e) (tonnes of CO2e) (tonnes of CO2e)
Location & Market based emissions

Scope 1 Combustion of fuel & operation of facilities 23,112 33,155 31,509
Scope 1 Refrigerants 4,541 5,513 4,360
Scope 2 (Location based) Electricity purchased for own use (inc PV Generated & green tariff) 39,860 57,294 89,375
Scope 2 (Market based) Residual electricity 2,469 2,909 88,907
Gross emissions (Location based) Total scope 1+2 CO2e emissions 67,513 95,962 125,244
Gross emissions (Market based) Total scope 1+2 CO2e emissions to account for use of renewable energy 30,122 41,577 124,776
Intensity measure (Location based) Tonnes of CO2 per £m turnover 83.71 82.54 149.86
Percentage change 2020 compared with 2019 2.14% (44.14%)
Intensity measure (Market based) Tonnes of CO2e per £m turnover 37.35 35.76 149.29
Intensity percentage change accounting for renewable energy 2020
compared with 2019 4.45% (74.98%)
Location based method is provided for disclosure only
UK Underlying energy use (KWH)

Combustion of fuel & operation of facilities (Natural Gas, fleet fuel oils,
Total Scope 1 Energy use company cars & LPG) 98,224,487 141,717,583 142,579,395
Total Scope 2 Energy use Electricity 170,968,398 224,154,292 193,372,954
Total Energy use (KWH) 269,192,885 365,871,875 335,952,349
Energy efficiency initiatives

Greggs is committed to reducing the energy consumption We’ve carried out a number of energy efficiency initiatives Our logistics teams have continued to identify
and the carbon impact from our operations. Last year we across the Greggs estate. These include: opportunities to improve performance, including:
set our target of net zero operational carbon emissions
across the organisation by 2040 and have put in place a –– An LED lighting replacement programme; –– The use of telematics to improve miles per gallon
plan aligned to the BRC’s Climate Roadmap. We have moved –– Investing in energy efficient equipment; and drivers’ driving style;
to renewable electricity sources across 96 per cent of our –– Completing ESOS Phase 2 during 2019 and continuing to –– Changing our distribution model and consequently,
estate and will look to investigate other renewable energy investigate and implement the opportunities identified; reducing radial distance (km) by 20 per cent;
sources for our remaining Scope 1 emissions. We recognise and –– Purchasing our first double-decker vehicle which has a

that our value chain emissions are significant and in 2021 –– Investing £26 million in a new coldstore facility in 50 per cent greater carrying capacity and a subsequent
we will look to measure our Scope 3 emissions and focus Newcastle, which will bring third-party storage in-house. reduction in kilometres travelled. We plan to order
our attention on where we have significant impact. further vehicles in 2021; and
–– Carrying out vehicle fridge unit trials (direct drive and
Greggs plc
hybrid) and if successful, will look to roll out.
21
NON-FINANCIAL KEY PERFORMANCE INDICATORS CONTINUED
Greggs Net Zero

Taskforce
We have pledged to become a net carbon neutral business.
We are proud signatories of the British Retail Consortium’s
‘Climate Action Roadmap’ looking to share knowledge, best
practice and commitment across the industry. We have
aligned our ambitions with the BRC’s targets:
Scope 2: Net Zero by 2030

This means that Greggs will be Net Zero by 2040 –

ten years ahead of the current UK Government plan.
We have set up a Net Zero Taskforce made up of key people

from across our business who, together, are helping us
formulate our plan to challenge the climate impact of every
area of our operations and drive action to reduce it.
Our efforts to cut carbon from our business have already

been recognised by the Carbon Trust: we are proud to hold
the Carbon Trust Standard which is a mark of excellence
given to organisations that demonstrate success in cutting
their carbon footprint. We are now working with them to

model our Scope 3 emissions – indirect emissions that
occur in our value chain. This will tell us where the hotspots
are in our supply chain, and help us to identify
opportunities for improving efficiency.
Greggs plc
During 2021 we will… complete the mapping of our whole

carbon footprint, enabling us to set science-based targets
22 and plot our pathway to Net Zero.
GENDER OF WORKFORCE
Gender of workforce

We are proud of our reputation for bringing the best
talent through the business regardless of gender and
that 69 per cent of our total workforce is female, almost
half of our management population is female and, of the
seven Board posts, three are held by women.
Female Male Total
Board 3 4 7
Senior managers 51 62 115
Other managers 226 253 479
All employees 14,956 6,576 21,538
Notes:
Headcount figures at 31 December 2020. 69% of total workforce is female
(14,956 of 21,538).
For info: There are six employees whose gender is recorded as ‘Unknown’ or
‘Undeclared’, hence the total figure of 21,538 is not the sum of the Female and
Male totals.
Total number of employees
21,538
Female 69%
Male 31%

Greggs plc
23
OUR STRATEGY IN ACTION

GREAT
TASTING,
FRESHLY
PREPARED
FOOD
You cannot beat freshly baked, freshly
prepared food. With our great flavours,
responsibly-sourced ingredients,
consistent quality and outstanding
value – our food-to-go leads the way.
A new award-winning vegan launch got us off to a great
start but when the pandemic struck, our teams did a great
job of focusing on our core best-sellers, maintaining an

essential service under Covid-secure conditions.
For those customers able to stay at home, we moved

quickly to bring Greggs to them, partnering with
Greggs plc
Just Eat for delivery, and ramping up supplies of

our home-baking range sold through Iceland.
24
OUR STRATEGY IN ACTION CONTINUED

Vegan victory
Hot on the heels of the success of our award-winning
Vegan Sausage Roll, hailed PETA’s ‘Product Launch of
603
the Year’ in 2019, we launched our Vegan Steak Bake Our partnership with Just Eat
in early 2020. It’s proving a welcome addition to our In 2020, our Just Eat partnership was rolled out
growing vegan range, and PETA declared it the at breakneck speed to over 600 shops nationwide, shops and counting
‘Best Vegan Pasty’, 2020. meaning more and more customers can enjoy
Bake your own

Our long-standing partnership with Iceland saw
Greggs from the comfort of their own homes.
In 2020 we launched our Pizza Sharing Boxes
exclusively with Just Eat, alongside our single
220
cities and towns across the UK, serving over
record-breaking sales in 2020 as many more customers
700K
slice and meal deal offers.
baked their Greggs favourites at home. We further extended
our range with Iceland, including the introduction of the We have big plans to further-expand delivery
eagerly anticipated Vegan Sausage Roll earlier this year. in the coming year, adding more locations customers
and choice across the menu to strengthen
Plans for 2021 our delivery proposition throughout the day, We’ve already fulfilled and delivered over
We have a strong pipeline of new product developments,
1.4 million
bringing our best customer offering to more

with many opportunities to improve our product offer and customers and homes across the UK.
further develop our position in the food-on-the-go market.
Working in partnership, we’ve created significant orders
We will continue to expand delivery through Just Eat,
Greggs plc
awareness that Greggs is exclusively available for

adding more locations and choice across the menu delivery on Just Eat, via national advertising and A top-5 brand for delivery from a standing start*
and introduce options for evening consumption. digital communication. *based on NPD Crest data
25

BEST
CUSTOMER
EXPERIENCE
Fast and friendly service is a key
reason why customers choose Greggs.
Great service is not an easy thing to
deliver under pressure, and our shop
teams do an amazing job. Through
Greggs Rewards, we are able to build
long-lasting relationships with our
customers and reward their loyalty.
Our colleagues are amazing. And while that’s no surprise
to us, 2020 in particular highlighted the strength we have
in our people as they rose to the many challenges that we
faced as a business. Adapting to work under Covid-secure
conditions has brought out the best in us as we fought to
maintain our services in all parts of our business, whether

in shops, our supply chain, or amongst our staff who were
working at home.
Our shop teams remained enthusiastic and committed

Greggs plc
as the Covid-19 guidelines evolved over time, and ensured

our customers received the same warm welcome and
tasty products they know and love.
26
Full steam ahead with Next Generation Greggs

While we had to adapt our operations radically to be
Covid-secure, we were also determined not to let the
pandemic slow down progress with our strategic plan.
Following successful trials in 2019, we launched our

multi-channel digital transformation programme in
January: ‘Next Generation Greggs’ – not knowing that
Click + Collect
it was about to become even more important.
2020 saw, within a matter of weeks, the rapid development
and launch of our Click + Collect service, providing a safe
With more and more customers looking for options such as
and socially-distanced way to shop. Successful early trials
Click + Collect or home delivery, we ramped up our efforts,
meant we were able to roll out to all company-managed
with accelerated plans and digital capabilities, rolling out
shops in the Autumn.
new services including an enhanced Greggs Rewards offer,
a brand new Click + Collect service and nationwide delivery
Our Click + Collect offer provides customers with the
with our partner, Just Eat.
ability to choose their shop and collection time, and allows
them to order a range of Greggs products in advance,
ready for collection.
Our improved Rewards scheme New shops

We’ve improved our digital channels significantly and While the pandemic has prevented many customers from
evolved the ways that we can connect with our customers. going about their lives as normal, for many others unable to
Our new and enhanced loyalty programme allows work from home, or needing to travel for essential reasons,
customers to earn rewards right across our range, not our food-on-the-go services have been vital. That has
just for buying coffee, creating more reasons for them certainly been the case for those customers using cars
to choose Greggs and more opportunities for them to instead of public transport.
connect with their favourite food-on-the-go brand.
We reignited our shop opening programme in the latter part
Our new rewards scheme is already proving popular; of the year; focusing mainly on areas where we can provide
driving new memberships, increased spend and more easy access for customers in cars, (given the switch away

frequent visits. from public transport due to the pandemic), including new
concessions in Asda and Tesco, in addition to retail parks
and petrol forecourts with our franchise partners
84
In 2020 we opened
Greggs plc
With rental levels falling and increased availability of

premises, we are also taking advantage of this opportunity
to grow our presence in central London, including two
27 new shops (including 35 with our franchise partners). units at St. Pancras Station.

St Pancras Station
Plans for 2021

We will increase shop numbers and expect to open 100
new shops, including 40 with franchise partners. We will
continue to develop our new customer channels to offer
our services wherever, whenever and however our
customers want us.

100 *
Greggs plc
New shops expected to open in 2021
28 Coatbridge * (net new shops), including 40 with our franchise partners.

COMPETITIVE

SUPPLY
CHAIN
By owning our supply chain, we can
make great tasting, freshly prepared
food accessible to everyone.
In a year like no other, our supply chain colleagues did
us proud, going above and beyond. They worked around
the clock to maintain shop supplies while adapting to
the ever-changing shop closures.
Despite the many challenging circumstances of 2020,

our team made outstanding progress on our key
strategic projects.

Greggs plc
29
Flood at our bakery and logistics site in Treforest Project Triton A major milestone in our journey to fully centralised

Even before the difficulties presented by Covid-19, our and automated production
Designed with sustainability in mind, Project Triton
supply-chain teams began the year responding to the During 2020, we installed the last of our central
highlights our commitment to Net Zero Greggs.
challenges of a flood, which led to the temporary closure of manufacturing platforms at Clydesmill, near Glasgow.
In 2020, we commenced the build of Project Triton,
our bakery and logistics site in Wales. The Treforest Bakery This centralised approach has allowed for improved
our £26 million investment in frozen storage and
sits adjacent to the River Taff, which on the 16 February product quality and consistency and greater efficiencies,
distribution capability at our Balliol logistics site
2020 breached its banks, caused by the heavy rain that with resultant volumes greater than original expectations.
in Newcastle upon Tyne. The new facility will have
Storm Dennis had brought to South Wales and the West.
capacity for 14,000 pallets, allowing us to consolidate
This structure has also been a huge benefit in being able
the manufacture of frozen products into a single point
The whole site was under three feet of water, including the to cost-effectively respond to the challenges of Covid-19,
of storage and distribution, leveraging cost and
Treforest Distribution Centre warehouse. Our first priority allowing for greater control of range and capacity to meet
efficiency savings, as well as providing much needed
was to ensure the safety of our colleagues, followed by the the changing demands throughout 2020.
capacity for growth for many years to come.
wait for the waters to subside so we could assess what
damage had been caused and begin the clean up. Another big year for Project Sunrise – our major
We expect Triton to be operational in mid-2021.
process and systems investment programme
We considered carbon efficiency at every stage
In true Greggs style, our colleagues rallied together to During 2020, the project team continued the roll out of our
of the construction process, including:
start removing the water that had submerged our bakery SAP supply-chain solution, despite the disruption to the
and warehouse. This was a tremendous effort by the team, business caused by the global pandemic.
–– Refrigeration: Water-cooled variable refrigerant
who also had to make safe all the plant and machinery and
flow which recovers and reuses heat, designed to
safely dispose of all food products. Our insurers confirmed In September, the team implemented the SAP system onto
maintain temperature more efficiently, meaning
substantial damage and that it would be months before we the bread rolls technology platform at our Enfield bakery.
less energy is needed;
would be fully operational once again. The team also implemented the manufacturing and
–– LED lighting in offices instead of the more
logistics solution at our first combined site in Manchester
energy-hungry, incandescent style of bulb;
To ensure we could distribute products from other in October 2020. In addition to this, we integrated our
–– Thermal-efficient dock system: Minimising heat
manufacturing sites to our shops in the West, the team SAP system with one of our third-party logistics providers
gains and maintaining cool chain with minimal
devised a plan to get the logistics side of the bakery (The Ice Company).
air leakage;
decontaminated, dried and signed off, and ready to
–– Use of 100 per cent recyclable insulation panels;
commence picking and delivery operations. This plan saw We are continuing to make good progress into 2021,
–– 12 electric charging points installed in the car park;
us fully operational in a matter of weeks. The bakery side with the aim of rolling out the system to the remainder
and
of the operation took longer to recover, and twelve months of the supply chain by the end of the year.
–– Full rainwater drainage system, including provision

later we were in a position to once again make bread at
for collecting storm rainwater, through the use of
Treforest. Plans for 2021
underground storage tanks.
2021 will be another big year for our supply chain as we
When the floods struck in 2020, the site’s record investment complete SAP systems roll out as well as our £26 million
Greggs plc
project, designed to ensure capacity and support our investment in our new automated frozen storage and
operations and shop growth for the long-term, had not distribution capability at our Balliol logistics site.
long started. Through the team’s tenacity and dedication,
30 this project is now due for completion in April 2021.
FIRST CLASS

SUPPORT
TEAMS
We’ve invested heavily in leading-edge
systems. They equip our support
teams to provide the best service
to our colleagues and ultimately,
our customers.
Our investment in modernising our IT systems and core
business processes certainly paid off in 2020, enabling us
to continue ‘Business as Usual’ when our colleagues were
required to work from home.
When it became apparent that remote working was going

to be the new normal, we were able to rapidly roll out modern
office working tools, including Office 365, enabling us to work
together as teams, while working remotely, and we have
established new tools and ways of working along the way.
Plans for 2021

Digital will be the focus for our teams in 2021 with the

launch of our new Greggs Rewards App and new website,
followed by a new CRM platform. Digital system solutions
will also support the introduction of allergen product
labelling and new customer service options.
Greggs plc
31
SUPPORTING OUR LOCAL COMMUNITIES
Responding to

the pandemic:
supporting
families in crisis
Supporting our local communities has always
been at the heart of our approach. During
2020 we pulled out all the stops to help
families struggling during the pandemic.

Food donations
When we had to close our doors at the start of the national
Greggs plc
lockdown in March, we made it our mission to redistribute

all unsold and surplus food to those most in need. We also
organised deliveries of sweet treats to the NHS and other
32 key workers as a small token of our gratitude.
SUPPORTING OUR LOCAL COMMUNITIES CONTINUED
Tackling holiday hunger

The Greggs Foundation team offered £500 to each school
in our Breakfast Club network to help them provide food
parcels to send home to their most vulnerable families
before the schools closed their doors in March. Within a
matter of days, the team had assessed and processed
£775K
funding for over 450 schools. They continued to work with
the schools and their families throughout the lockdown,
helping to support the most vulnerable children. In total over
£247,000 was awarded to the school network during those
first eight weeks and a further £250,000 later in the year to
help schools provide food parcels during the school holidays. Total amount the Greggs Foundation team helped to get to
people in need, in the form of hardship grants during 2020.
Emergency grants
During the spring lockdown the Greggs Foundation team
also awarded over 220 emergency grants in small awards
of £200-£1,000 to help local initiatives where people
were providing support for their communities – a total
of £114,000.
Hardship grants
The pandemic stretched many families to their limits.
The Greggs Foundation team did all they could to support
struggling families through their hardship grant
programme, extending access to it via the Breakfast Club
schools. These grants helped to provide families with
essential white goods, beds or bedding, supermarket
vouchers or clothing vouchers.
The Foundation’s reputation for managing hardship grant

programmes attracted additional funding from other
partners, including £100,000 from the Barclays 100x100
Community Relief Fund, £1 million from the government’s
Community Match Challenge scheme and £40,000 from
Greggs plc
the Community Foundation Tyne & Wear and

Northumberland. The Greggs Foundation trustees also
drew on their investment reserves to boost support for
33 families and individuals in hardship at this critical time.
THE GREGGS PLEDGE
The Greggs Pledge

In February 2021 we launched the Greggs We have always been committed to doing the right thing, to three areas: communities, the planet, and our
Pledge which declared ten things that we but we wanted to be more specific about how we channel approach to business. We have set ourselves ten
our efforts and resources into doing good. We reflected on stretching targets to be achieved by 2025. Each of our
are doing to help make the world a better what we could do to have the most positive impact on the pledges aligns with at least one of the UN Sustainable
place by 2025, and beyond. world around us, and have chosen to dedicate our efforts Development Goals (SDGs).
Stronger, healthier communities Safer planet Better business
We pledge to play our part in improving the nation’s diet We pledge to become a carbon-neutral, We pledge to increase the diversity of our workforce,
by helping to tackle obesity, providing free breakfasts zero-waste business. and to use our purchasing power responsibly, with the
to schoolchildren, and giving surplus food to those aim of making things better in our supply chain.
most in need.
1. G
rowing Greggs Breakfast Clubs: By 2025, we will 5. Going carbon neutral: By 2025, we will be on our way 8. Embracing diversity: By 2025, our workforce will
support 1,000 school Breakfast Clubs providing some to achieving carbon neutrality by using 100 per cent reflect the communities we serve.
70,000 meals each school day. renewable energy across all of our operations. 9. Sourcing sustainably: By 2025, we will have a robust,
2. Putting an end to food waste: By 2025, we will create 6. Building the shops of the future: By 2025, 25 per cent responsible sourcing strategy in place and will report
25 per cent less food waste than in 2018 and will of our shops will feature elements from our Eco-Shop annually on progress towards our targets.
continue to work towards 100 per cent of surplus food ‘shop of the future’ design. 10. Protecting animal welfare: By 2025, we will secure and
going to those most in need. Using less packaging: By 2025, we will use 25 per cent
7. maintain Tier 1 in the BBFAW Animal Welfare standard.
3. Supporting our communities: By 2025, we will have less packaging, by weight, than in 2019 and any
50 Greggs Outlet shops providing affordable food in remaining packaging will be made from material
areas of social deprivation, with a share of profits that is widely recycled.
given to local community organisations.

4. Helping our customers to make healthier choices:
By 2025, 30 per cent of the items on our shelves will
be healthier choices, and we will attract customers
through education and promotions.
Greggs plc
Related Sustainable Development Goals Related Sustainable Development Goals Related Sustainable Development Goals
34
THE GREGGS PLEDGE: STRONGER, HEALTHIER COMMUNITIES
Stronger, healthier

2. PUTTING AN END TO FOOD WASTE
By 2025, we will create 25 per cent less food
communities
waste than in 2018 and will continue to work
towards 100 per cent of surplus food going
to those most in need
Our customers love our just-baked savouries and

the sandwiches we make from bread baked that
day, but our ‘daily-fresh’ approach presents us
with a challenge: we have to bake enough so
We pledge to play our part no-one’s disappointed, but anything leftover
in improving the nation’s diet 1. GROWING GREGGS BREAKFAST CLUBS
becomes waste.
by helping to tackle obesity, By 2025, we will support 1,000 school
We’ve worked hard to reduce waste at every
providing free breakfasts to Breakfast Clubs providing some 70,000
stage of the process, from our manufacturing
schoolchildren, and giving meals each school day
sites to our retail forecasting and ordering
surplus food to those system. Any unsold food left at the end of the
For various reasons, many kids sadly don’t get
most in need. day is offered to charities that can pass it on
the right start to their day. Hungry children find
to people who need it in the local community.
The British people made Greggs the it harder to concentrate and learn, ultimately
By the end of 2020, we had 1,590 organisations
success story it is today, and we have impacting their academic attainment. Giving
regularly collecting unsold food from us.
always looked for ways to give something children a good start to their day gives them a
back to them. Way back in the sixties we good start in life, so, in 1999, we launched our
By 2025, we hope to be providing one million
started with our free pie ‘n‘ peas suppers Breakfast Club programme to provide a free
meals for people in need every year. However,
for older residents in Gateshead and, breakfast to children who need it.
our ultimate vision is for every unsold,
today, give one per cent of our pre-tax perishable food item to be saved from the bin.
profits to the Greggs Foundation. As a Today there are 600 Breakfast Clubs across
food business, we know that hunger and the UK, serving wholesome, free breakfasts
By the end of 2021, we will have…
obesity are the issues where we are best to around 39,000 children every school day –

reduced the amount of food waste we create
placed to make a difference. that’s 7.6 million meals a year.
in our manufacturing operations by
10%
We directly fund 307 of these clubs through the
680
Greggs Foundation, and have welcomed on board
Greggs plc
104 local and national partners who provide

grants to cover the costs of the other clubs.
35 Breakfast Clubs
THE GREGGS PLEDGE: STRONGER, HEALTHIER COMMUNITIES CONTINUED

3. SUPPORTING OUR COMMUNITIES 4. HELPING OUR CUSTOMERS TO MAKE
By 2025, we will have 50 Greggs Outlet shops HEALTHIER CHOICES
providing affordable food in areas of social By 2025, 30 per cent of the items on our
deprivation, with a share of profits given shelves will be healthier choices and we will
to local community organisations attract customers through education and
promotions
Millions of people in the UK don’t have enough
to eat, or are living with the anxiety of not knowing Our customers lead increasingly busy lives,
where their next meal is coming from. meaning that convenience is often one of the most
important factors influencing their food choices.
We currently have 13 Greggs Outlet shops around the UK We want to be the nation’s favourite destination for
where day-old food products are sold at a big reduction, food-on-the-go but aim to ensure that ‘convenient’
helping people to spend less on food. We want to goes hand-in-hand with ‘healthy’.
increase the number of Outlet shops to enable more
people in the UK’s more deprived areas to get our Our Balanced Choice range is made up of
products at a big reduction. products with good nutritional content and each
contain fewer than 400 calories. We provide
By 2025, we intend to increase the number of Outlet calorie and nutritional information for all of our
shops to 50. products either on shelf, or through our website
and mobile app.
We donate a share of our profits from these shops
to the Greggs Foundation which passes it on to local We have reformulated many of our traditional
community groups that are working to address food bakery products to reduce the amount of sugar,
poverty and associated problems. salt, fat and calories they contain, whilst
remaining true to their great-tasting heritage.
30
By the end of 2021, we will have… We have also developed vegan versions of our
best sellers, helping people to lower their meat
consumption.

25%
Greggs Outlet shops By the end of 2021,
Greggs plc
of the items on our shelves will be

healthier choices.
36
THE GREGGS PLEDGE: SAFER PLANET
Safer planet

5. GOING CARBON NEUTRAL 6. BUILDING THE SHOPS OF THE FUTURE
By 2025, we will be on our way to achieving By 2025, 25 per cent of our shops will feature
carbon neutrality by using 100 per cent elements from our Eco-Shop, ‘shop of
renewable energy across all of our the future’ design
operations
We’re always on the lookout for new, green
Today, 96 per cent of the electricity we use technologies that might work for Greggs.
is from renewable sources, and is therefore We’ve created a template for a shop that
carbon neutral. By 2025, we want to be using incorporates sustainable thinking from the
100 per cent renewable electricity. design stage. The template considers how we
build our shops, and what we make them out of,
We are proud signatories of the British Retail as well as the technology and fittings that we
Consortium’s ‘Climate Action Roadmap’ meaning install and run inside them. It even considers
that we have committed to be Net Zero by how we decommission the shop and recycle
2040 – ten years ahead of the current UK components from it. This ‘shop of the future’
Government plan. template is helping us to push the boundaries of
what is possible. We call it our Eco-Shop design.
During 2021, we will complete the mapping of
our whole carbon footprint, enabling us to set By 2025, we want at least a quarter of our shops
We pledge to become a carbon neutral, science-based targets and plot our pathway to feature elements from the Eco-Shop design.
zero waste business. to Net Zero.

created the initial design and operational
The planet is facing a climate emergency READ MORE ABOUT OUR COMMITMENT TO
NET ZERO GREGGS ON PAGE 22. requirements for our Eco-Shop.
and we acknowledge our responsibility
to do everything we can to reduce our By the end of 2021, we will have…
Greggs plc
environmental impact. completed Carbon Footprint modelling

(Scope 3).
37
THE GREGGS PLEDGE: SAFER PLANET CONTINUED

7. USING LESS PACKAGING
By 2025, we will use 25 per cent
less packaging, by weight, than in 2019 and
any remaining packaging will be made from
material that is widely recycled
Product packaging is obviously a necessity. We

use it to keep things fresh and uncontaminated
in our supply chain, and our customers need it
to carry their purchases away from our shops.
However, we want to make sure we are not using
more than we need to.
We started with plastic and, in 2019, cut

350 tonnes of single-use plastics from our
operations. By 2025, we want to eliminate
all unnecessary single-use plastic from our
shops and manufacturing sites.
After plastic, our next biggest focus area is

coffee cups. We are working with our industry
peers to develop sector-wide improvements
in the way we manage coffee cup usage
and disposal.

reviewed all packaging against ‘On Pack
Recycling Label’ (OPRL) criteria.

Greggs plc
38
THE GREGGS PLEDGE: BETTER BUSINESS
Better business

8. EMBRACING DIVERSITY
By 2025, our workforce will reflect
the communities we serve
We’re proud of our reputation as a good

employer, but we’re not complacent and
recognise that there is more that we can do,
particularly in the area of diversity. We want
everyone to feel welcomed at Greggs and our
We pledge to increase the
colleagues to feel able to be themselves at work,
diversity of our workforce and whatever their background, preferences, or
to use our purchasing power views. We also want to make sure there are no
responsibly, with the aim of barriers that might stop anyone from building
making things better in our a successful career with us.
supply chain.
We signed up to the National Equality Standard
in 2017 and renewed our commitment in 2020.
By being a successful business, Greggs
makes a meaningful contribution to the
We are working hard to improve the data we hold
economy each year through providing jobs
for our colleagues in relation to their gender,
and paying tax. We have always strived
ethnic origin, sexual orientation and whether
to be a good corporate citizen and aim to
or not they have a disability. Knowing this will
treat everyone – our colleagues, suppliers,
help us to develop plans to ensure we grow as
partners and customers – with fairness,
a diverse company, representative of the
consideration and respect.
communities we serve.

completed the assessment process

for the National Equality Standard.
Greggs plc
39
THE GREGGS PLEDGE: BETTER BUSINESS CONTINUED

9. SOURCING SUSTAINABLY 10. PROTECTING ANIMAL WELFARE
By 2025, we will have a robust, responsible By 2025, we will secure and maintain Tier 1 in the
sourcing strategy in place and will report BBFAW Animal Welfare standard
annually on progress towards our targets
Animal welfare is a priority for Greggs. Our whole shell eggs
When it comes to sourcing the ingredients that and liquid eggs are from free-range hens and we expect
we need to make our products, or the goods and all livestock and seafood species reared or caught and
services that enable us to run our business, supplied to us to have been well-treated. Our suppliers
‘sourcing sustainably’ means taking care that must meet or exceed farm-animal welfare regulations.
they are produced and delivered responsibly. We’ve set out these expectations in the Greggs Farm
Animal Welfare Standards, a clear set of rules that we
We treat our suppliers fairly and respect the developed with consideration of the Farm Animal Welfare
human rights of workers in our supply chain. We Committee’s ‘Five Freedoms’.
are big supporters of British Business and many
of our suppliers are local, but we also choose to We participate in the annual Business Benchmark on Farm
source Fairtrade products which empowers Animal Welfare (BBFAW) and, by 2025, intend to secure and
farmers and workers in the developing world then maintain Tier 1 rating. To do this, we are stepping up
to improve their living standards. our efforts in the areas of management commitment,
policy, governance and performance monitoring.
We don’t want to buy products that cause
deforestation and are careful in how we procure By the end of 2021, we will have…
paper products and anything containing palm oil. …developed and implemented
TIER 1
our roadmap to achieve
ensured all direct purchases of soy are verified
as ‘Identity Preserved’ and have completed a
RATING
review of all other uses of soy in our ingredients.

Greggs plc
40
FINANCIAL REVIEW
Financial Review

Financially, 2020 was a year of two very Actions to ensure liquidity significantly lower than normal as a result of social
different halves. The period to June In March 2020 Greggs’ shops were closed in response to distancing measures and further restrictions that limited
the first national lockdown and it was clear that access to the number of customers out of home.
included an extensive lockdown period,
additional liquidity would be required in order to support
where our shops were closed and we relied the business through a significant period of closure. Reporting ‘like-for-like’ sales (sales in company-managed
on financial support from a number of Actions were taken to preserve cash, including the shops with more than one calendar year’s trading history)
government-backed schemes. In the furloughing of most employees with support from the is a key alternative performance measure for Greggs as it
second half of the year we took action to Government’s Coronavirus Job Retention Scheme (CJRS), shows underlying estate sales performance excluding the
reduce this reliance and saw a progressive cancellation of the previously-declared final dividend for impact of new shop openings and of closures. The table
2019 and halting capital projects. below shows the monthly like-for-like sales level in the
strengthening of business performance, second half of 2020 as a proportion of that in the same
albeit materially impacted by Covid-19 In April 2020 the Company established its eligibility to draw period of 2019:
restrictions, supported by the development on the Bank of England’s Coronavirus Corporate Financing Jul* Aug Sep Oct Nov Dec
of new digital channels. Whilst the outlook Facility (CCFF) and issued £150 million of commercial Company- 64.9% 68.0% 76.1% 80.1% 76.7% 85.7%
remains challenging, we have a strong paper to ensure that it maintained a strong financial managed
balance sheet that is supporting our growth position in the face of what was then an uncertain period like-for-like sales
of closure. In December 2020 the Company put in place a as percentage of
ambitions whilst protecting the interests of 2019 level
£100 million revolving credit facility with a syndicate of
all of Greggs’ stakeholders. commercial banks. This gave us confidence to redeem the
* The full estate reopened on 2 July
2020 2019 CCFF commercial paper and, along with a net cash balance
£m £m
at the end of the year, has put us in a strong financial Looking forward to 2021 there will be periods where the
Revenue 811.3 1,167.9
position going into 2021. Greggs estate was closed in the comparative period of
Operating (loss) / profit (7.0) 114.8
2020. In order to show a consistent measure of sales

Finance expense (6.7) (6.5)
Sales recovery versus pre-Covid-19 levels we intend to report
(Loss) / profit before taxation (13.7) 108.3
Total Group sales for the 53 weeks ended 2 January 2021 the level of like-for-like sales achieved in that period of
Income tax 0.7 (21.3)
were £811.3 million (2019: £1,167.9 million). The reduction 2021 versus the 2019 level.
(Loss) / profit after taxation (13.0) 87.0
Greggs plc
in sales year-on-year reflects the closure of the Greggs

shop estate for most of the second quarter of 2020 due An important feature of the improving trend in like-for-like
to the national lockdown in response to the coronavirus sales from company-managed shops has been the
pandemic. Sales in the second half of the year were also
41 contribution of delivery services, which were rolled out
FINANCIAL REVIEW CONTINUED
nationally across the second half of 2020. In the fourth possible but the total charge for write-offs and stock Overall wage cost inflation was 3.5 per cent in 2020. A

quarter of the year delivery represented 5.5 per cent of provisions was £9.0 million; pay increase for staff was implemented but the planned
company-managed shop sales, supplied by 600 of our –– Asset impairment charges and onerous shop operating increase for managers was cancelled and, for five months
shops that now provide delivery services to catchments costs have been recognised as a result of the of the year, all directors took a voluntary reduction in
served by Just Eat. We expect this to increase to around challenging trading environment. The acceleration of salaries and fees in order to protect the cash position
800 shops in 2021. Delivery channel transactions typically the closure of 38 shops crystallised impairment charges of the business. Looking forward the impact of National
have a much higher average transaction value (ATV) than amounting to £5.4 million and we have provided for Living Wage increases will be less significant than has
those from walk-in customers. Whilst the percentage £2.5 million in onerous costs directly linked to these been the case in recent years and, consequently, overall
margin from a delivery transaction is slightly lower than leases, for example rates, service charges and wage and salary inflation is expected to be around
the walk-in equivalent there is a benefit from the insurance. A further £8.6 million charge was made for the 2.3 per cent in 2021.
incremental delivery transactions and their higher ATV. impairment of 87 shops which continue to trade but are
unlikely to recover the full carrying value of their assets; The rate of food, packaging and energy cost inflation
Loss for the year –– Incremental costs of £9.3 million were incurred to put eased in the second half of 2020 as the demand for
The loss before tax in 2020 was £13.7 million in place additional protective measures across the commodities weakened. In the year ahead we expect
(2019: £108.3 million profit), with a loss of £65.2 million in business, including a proactive virus-testing overall cost inflation in these areas to be in the range of
the first half followed by a £51.5 million profit in the second programme at our manufacturing and logistics sites. one to two per cent.
half of the year. The loss for the year included a £0.5 million Heading into 2021 we are incurring monthly costs of
profit from property disposals (2019: £0.7 million) and a around £1 million in respect of additional cleaning, Greggs has continued to pay its shop rents through the
£0.8 million charge in respect of exceptional items protective workwear and testing; pandemic but we have moved the basis of payment to
(2019: £5.9 million charge). –– The Company relied on support for employment from ‘monthly in advance’. This change in the basis of payment
the CJRS; this totalled £87 million in 2020. By the end has not had a material impact on the valuation of lease
The exceptional charge of £0.8 million relates to of the year the rate of CJRS support had reduced to liabilities. We have been in discussions with the landlords
redundancy costs and costs arising from transfer of c.£200k per week and related to the protection of of our shops to negotiate rent reductions; these
operations associated with our multi-year programme of employment for team members who were shielding discussions are continuing and in a weak rental market we
investment in our supply chain and has been separately or unable to work because of lockdown restrictions; expect to continue to receive better terms from landlords
identified in the interests of consistency with the treatment –– In the fourth quarter of the year the Company entered in return for the relative security that comes with Greggs’
adopted in previous years. The programme is now largely into a collective consultation with union and employee strong covenant.
complete and it is unlikely that any remaining costs will be representatives with the aim of reducing employment
sufficiently material to be separately classified. costs to reflect lower-than-normal business activity Financing charges
levels. The consultation process minimised the The net financing expense of £6.7 million in the year

The result for 2020 reflects a number of factors that have number of job losses but, unfortunately, still resulted (2019: £6.5 million) comprised £6.5 million in respect of the
not been classified as exceptional but are described below in 820 redundancies. The one-off cost of these IFRS 16 interest charge on lease liabilities and £0.8 million
because of their materiality: redundancies was £10.2 million and has lowered interest expense on borrowings under the Company’s
ongoing annual employment costs by £14.4 million; and financing facilities. This was offset by interest received and
Greggs plc
–– The three-month closure of the Company’s shop estate –– A business rates holiday for retail, hospitality and leisure foreign exchange gains and losses totalling £0.6 million.
in the first half of the year resulted in stocks of some businesses provided relief totalling £18.8 million over the
food and drink items being unusable within the period April to December 2020. The sector-wide support In the year ahead the interest expense on borrowings will
42 business. These were donated to good causes wherever is currently due to continue until June 2021. reflect the arrangement and commitment fees for the
Company’s revolving credit facility. This is expected As trading conditions and profitability improve the Board rate of expansion of our shop estate. In this respect we will

to amount to a £1.0 million charge if the facility expects to recommence a dividend distribution. In order be investing in around 100 new company-managed shops
remains undrawn. to do so the Company must first establish a sufficiently alongside further openings with franchise partners.
strong net cash position to protect forward liquidity in the
Taxation case of further interruptions to trading. It is anticipated Having invested substantially in the shop estate in recent
The Company has a simple corporate structure, carries out that a progressive dividend policy will again be adopted years we intend to refurbish relatively few shops in 2021
its business entirely in the UK and all taxes are paid there. once trading conditions and business performance but will continue trials of formats designed to support
We aim to act with integrity and transparency in respect have stabilised. future plans. The requirement for capital expenditure to
of our taxation obligations. refurbish our existing shops will increase in the coming
Balance sheet years and we will start to address supply chain capacity to
The Group’s overall effective tax rate on losses in 2020 Capital expenditure meet the growth opportunities ahead. On current plans we
was 5.2 per cent (2019: 19.7 per cent rate on profit). The We invested a total of £58.7 million (2019: £86.0 million) in expect this to require capital expenditure of c.£90 million
effective rate on losses in the year reflects the impact of capital expenditure during 2020. The year started with an in 2022 followed by c.£100 million in 2023.
a largely fixed level of disallowed expenses for taxation ambitious programme of investment activity designed to
purposes relative to the level of loss for the year together grow our shop numbers and create supply chain capacity Management of return on capital
with the revaluation of deferred tax balances. for future expansion. In quarter two, in order to protect We manage return on capital against predetermined
liquidity, we stopped almost all capital expenditure with targets and monitor performance through our Investment
The introduction of super-deduction capital allowances in the exception of the work on our new, automated cold Board, a management committee where all capital
the recent UK Budget and the revaluation of deferred tax will store at Balliol Park in Newcastle upon Tyne. expenditure is subject to rigorous appraisal before and
affect the Group’s effective rate of taxation over the next after it is made. For investments in new shops we target an
two years. We expect the effective rate for 2021 to be around As our shops reopened in the middle of 2020 and we average cash return on invested capital of 25 per cent, with
19.0 per cent and the effective rate for 2022 to be around became more confident of sustainable trading levels a hurdle rate of 22.5 per cent, over an average investment
17.0 per cent. Going forward the effective rate is expected we selectively recommenced capital works. Capital cycle of eight years. Other investments are appraised
to be around 1.5 per cent above the headline corporation tax expenditure to support new shop openings was focused using discounted cash flow analysis. With trading
rate; this is principally because of disallowed expenditure on pipeline opportunities in locations which customers conditions currently subdued we have not changed our
such as depreciation on non-tax-deductible qualifying typically access by car, these having proved the most investment criteria but are looking beyond current trading
properties and costs of acquisition of new shops. resilient under prevailing trading conditions. conditions when evaluating which investments will make
strong returns on capital in the medium term.
Earnings per share and dividend Depreciation and amortisation on property, plant and
The diluted loss per share was 11.8 pence (2019: 85.0 pence equipment and intangibles in the year was £60.8 million Working capital

earnings per share). (2019: £59.9 million). A further £51.9 million (2019: £50.8 Group net current liabilities were £45.3 million at the end of
million) of depreciation was charged in respect of right-of- 2020 (2019: £66.4 million), the overall reduction primarily
Faced with the need to preserve cash during the initial use assets as a result of capitalised leases. reflecting lower-than-normal levels of trading and tax
period of lockdown in quarter two 2020 the Board liabilities along with a lower cash balance. Trade and other
Greggs plc
cancelled payment of the previously-declared final Our plans for 2021 include capital expenditure of around receivables have increased as a result of increased growth
dividend for 2019. No interim dividend was declared or paid £70 million. This will include completion of the Balliol Park in the B2B (wholesale/franchise) channel and provisions
in 2020 and the Board is not recommending a final dividend automated cold store, increases to manufacturing for performance-related remuneration are much reduced.
43 in respect of the year. capacity for savoury products and a return to the previous
Pension scheme liability

The net liability shown on the balance sheet for the The Company’s new revolving credit facility allows it to
Company’s closed defined benefit pension scheme draw up to £100 million in committed funds, subject to it
increased to £11.9 million (2019: £0.6 million), mainly as retaining a minimum liquidity of £30 million (i.e. maximum
a result of the reduction in the discount rate applied to net borrowings are £70 million). This facility is designed to
future liabilities. The scheme underwent a full actuarial provide protection to the business should it experience
revaluation in 2020, the results of which are expected to further periods of lockdown in the year ahead.
show a deficit in funding. The Company is working with the
scheme’s trustee to ensure that any funding requirements With a net cash position and committed facilities in place
are met over the medium term. the Company is in a position to look beyond short-term
trading uncertainties and begin investing in the
Cash flow opportunities that present themselves for profitable
In a year when there was so much pressure on cash growth in the years ahead.
resources it was a great advantage to have started 2020
with a strong cash balance. Following record financial Richard Hutton
results in 2019 the opening position in 2020 was a net Finance Director
cash balance of £91.3 million. The net cash inflow from 16 March 2021
operating activities after lease payments in 2020 was
£1.5 million (2019: £169.5 million). After capital expenditure
and other smaller investing and financing activities the net
outflow for the year was £54.5 million (2019: net inflow of
£3.1 million), resulting in an end-of-year net cash balance
of £36.8 million.
The events of 2020 have demonstrated the importance

of ensuring good liquidity. Greggs has consistently
maintained a net cash position in order to be able to
meet its obligations through a downturn or temporary
interruption to its ability to trade. The negative working
capital position that is generated by the Company’s

operations crystalises quickly in the absence of cash
receipts from trading. At the end of 2020 we estimate
that this working capital outflow would be in the order of
£35 million in a situation where Greggs was not able to
Greggs plc
trade its shops. In addition to this the weekly ‘cash burn’,

assuming continued government support for job retention
and relief from business rates, would be around £4 million
44 per week.
RISK MANAGEMENT
The Board has ultimate The various roles of those involved in the risk process are summarised in the diagram below:

responsibility for
Body Role Key activities
Ongoing review of risk process;

Main Audit Direction consideration of whistleblowing
ensuring that risks are

Board Committee & oversight reports; assessment of principal
risks & uncertainties
managed appropriately Consideration of new & emerging

Operating Risk Identify, assess risks highlighted by the business;
Our risk management methodology is well-embedded in Board Committee & monitor risk review of key strategic risks
& escalating as necessary
the business, and gives a holistic view of our risk exposure.
The effective taking and management of risks is essential
to enable us to meet our business objectives. Assurance on
Management of risk register;
Business Assurance effectiveness of
arranging insurance cover
function risk management
for risks where appropriate
& controls
The Board has ultimate responsibility for our risk management approach, and sets the parameters
within which risk can be accepted. Elements of this responsibility are delegated to the Audit
Committee, including reviewing the effectiveness of the overall risk and assurance approach.
Proactive risk management is the responsibility of the Risk Committee, a management committee
comprising representation from across the business which meets at least three times each year.
It ensures that mitigation plans are put in place to manage risks appropriately. Each functional
area within the business is responsible for the ongoing operational management of existing and
emerging risks.

Greggs plc
45
RISK MANAGEMENT CONTINUED
Viability statement solvency or liquidity. The impact of the pandemic has In each case the Directors reviewed the mitigating actions

The events of 2020 presented a practical test of the been reflected in the risk that the entire business could that would be necessary to protect the Company’s liquidity.
contingency plans and assumptions that we have be temporarily prevented from trading and be faced with
previously presented in our viability testing. The pandemic prolonged periods of subdued demand, with consequent These included:
impact was more significant than anything foreseen by our pressures on liquidity.
previous assessment of principal risks, but the planned –– The temporary suspension of dividend payments in
approach to cash preservation worked as planned, The principal risks to which the Company is exposed order to preserve cash for operational use;
supported by government assistance. The crisis also ultimately affect the ability of its shops to trade successfully, –– Restriction of capital expenditure whilst protecting
tested the Company’s capacity for borrowing, first through either due to reduced demand or because of operational essential infrastructure maintenance and
successful admission to the Bank of England’s CCFF interruptions, including those to its internal supply chain. commitments to strategic investments;
scheme and then via the establishment of a commercial A significant loss of sales is particularly damaging given the –– Access to government support;
revolving credit facility. Greggs’ resilience was tested Company’s vertical integration in that the cost of the internal –– Drawing on existing committed financing facilities; and
thoroughly in 2020 and the Directors have built this supply chain cannot be reduced quickly. –– Calling on the Company’s insurance arrangements
learning into the viability assessment described below. on the occurrence of an insured risk.
In order to stress-test the Company’s financial resilience
The Directors have assessed the Company’s prospects and scenarios were created to simulate the impact arising The scenarios tested were capable of being managed
viability taking into account the ongoing significant from the occurrence of the following principal risks: within the Company’s existing, committed financing
uncertainties around the pace at which activity levels will facilities. The pandemic scenario presents by far the
recover from the pandemic, particularly in respect of the 1. Pandemic threat – the risk that the Company is forced greatest financial stress to the business. With the
relaxation of social distancing measures. The assessment to close its shops to walk-in customers for three Company’s shops closed to walk-in customers the net cash
has taken the Company’s current position and plans and months each year as a result of lockdown rules, and outflow, after government support, would be expected to
tested its viability under various scenarios that reflect the experiences subdued levels of walk-in trade for the be c.£4 million per week, in addition to which would be a
occurrence of the principal risks with which it is faced. rest of each year. Delivery channel sales are assumed working capital outflow of c.£35 million to settle existing
These include threats to its operations and to the supply to continue through the lockdown months, as are ‘bake net obligations to creditors.
of products, both of which have been experienced to at home’ sales through the Company’s wholesale
some extent over the past year. relationship with Iceland Foods. This forward scenario The Company does not carry committed facilities to the level
assumes that government support would continue to that could, theoretically, be required in a situation where
In carrying out its assessment the Board has reviewed the be available for the support of employment and that multiple principal risk scenarios occurred concurrently. In
three-year operational and financial plans to 2023. This is relief from business rates would be available during such circumstances the Directors believe that the borrowing
the period over which the Board reviews management’s the periods of forced closure. capacity of the Company would be sufficient to allow it

business planning and sets performance targets, and 2. A brand-damaging food scare resulting in a significant access to temporary additional facilities.
therefore the Board believes that this is the most one-year sales reduction followed by gradual recovery
appropriate timeframe over which to make the viability of confidence. In making assumptions the Directors Based on the results of the analysis, the Directors have a
assessment. considered real examples of companies in the food reasonable expectation that the Company will be able to
Greggs plc
sector that had experienced such issues. continue in operation and meet its liabilities as they fall due
The Directors have carried out a robust assessment of the 3. Temporary loss of production capacity for the over the three-year period of their detailed assessment.
principal risks facing the Company, including those that Company’s iconic pastry savoury products and the
46 would threaten its business model, future performance, consequences for liquidity as capacity is restored.
Emerging risks Principal risks and uncertainties have an adverse effect on the business. Further, the

New and emerging risks facing the business are discussed The Directors have carried out a robust assessment of the exposure to each risk will evolve as we take mitigating
at each Risk Committee meeting, and are escalated to the emerging and principal risks facing the Company, and set actions, or as new risks emerge.
Board as appropriate, where the potential impact is out below are those which are considered to present the
considered to be significant. Discussions are informed by most significant threat to the business’ future development In disclosing our risk exposures, we have refocused one
matters raised across the business, providing a route for or performance. The position described below is a of our technology risks, identified previously, to consider
management to escalate any concerns. The Board is also summary of the status at the date of the annual report. the impact of increased reliance on systems, rather than
asked to identify and consider new and emerging risks, system capacity.
and seeks assurance that such risks are being properly Where appropriate, the impact of these risks occurring
managed. In considering the new and emerging risk has been considered when devising the scenarios tested The principal risks are grouped according to their
landscape, we have benchmarked our view against other as part of the financial viability statement, though clearly overriding theme, and are described along with key
organisations, to inform our discussions and ensure that the ongoing pandemic is the most significant factor. mitigations, the strategic pillars to which they are linked,
we have considered all relevant areas. Covid-19 has and any movement in net risk during the year.
impacted on a number of our principal risks during the Additional risks and uncertainties, not presently known to
year. This is reflected in our assessment of the movement management or deemed less material currently, may also
1 Great tasting, freshly prepared food 2 Best customer experience
in risk set out below.
3 Competitive supply chain 4 First class support teams
What is the risk? BUSINESS SUPPLY CHAIN MANAGEMENT ABILITY TO

TRANSFORMATION DISRUPTION OF THIRD PARTY ATTRACT/RETAIN/
RELATIONSHIPS MOTIVATE PEOPLE
Risk theme ORGANISATIONAL CAPACITY
Movement
Strategic pillars 2 3 4 1 2 3 4 1 2 3 4 2 3 4
Key developments Our current business change programme Our more centralised production As our reliance on third parties for Market forces may result in a shortage of
continues. and larger distribution centres of services, ingredients or business support available workforce, particularly within our
Expected timelines or savings may not be excellence create a greater reliance increases, we become more exposed to shops and specialist IT roles. The former
met, and there may be disruption to our on technology. As a result, the impact of their business interruption risks. This may be compounded by the relative
customers. any operational failure on our shops and could impact on our ability to produce, complexity of our shop operations,
customers increases. distribute or sell our products. There is compared with other retailers.

also an increasing risk to product integrity,
particularly in relation to food fraud.
Key mitigations Our planned timetable has changed We have processes in place to manage All third parties are vetted prior to We have developed new, centralised
to reflect the current environment, disruption at our sites, and these have engagement, and key supplier recruitment processes, making
Greggs plc
with some elements of the programme been tested during the ongoing pandemic. relationships are managed by our central application easier for potential
accelerated, and others postponed. Our capability to handle such situations procurement team. The impact of the UK colleagues. We offer attractive
We now have an agreed model which can has improved, and we have learned to cope leaving the EU has increased this risk due remuneration and benefit packages
readily be implemented at our remaining more effectively with disruption. The to variability in border controls. to reward our teams and encourage
47 supply sites. availability of frozen stock also aids our
response.
retention. The current economic
environment also reduces this risk.


What is
the risk? DAMAGE TO CYBER & DATA RELIANCE ALLERGENS
REPUTATION SECURITY ON SYSTEMS
Risk theme BRAND PERCEPTION TECHNOLOGY REGULATORY COMPLIANCE
Movement
Strategic pillars 1 3 2 3 4 2 3 4 1 2 3 4
Key As our profile increases, so does the Our data and systems are exposed Greater system integration and Increased focus on allergens and
developments impact of any reputational damage due to to external threats such as hackers or interconnectivity results in an increased associated legislation brings added
a loss of customer trust. This could result viruses, as are those of all businesses. impact in the event of any process failure complexity to our operations.
from the sale of unsafe food, or products These could result in data breaches, or or technology outage.
not meeting customer requirements, for disruption to our operation. The threat Network bandwidth could prove
example. landscape is constantly evolving. An inadequate as we move to a cloud-based IT
Engaging with a wider range of partners increase in homeworking due to the model.
could result in a loss of control over our pandemic increases this risk.
brand.
Key Procedures are in place throughout our We actively monitor our networks and We work closely with partners to provide We continue to progress towards a full
mitigations supply sites and shops to ensure that food systems, including conducting regular additional capacity and technical allergen labelling solution as required by
safety is maintained. Compliance is penetration testing. Action is taken to expertise when required. Contingency legislation, developing new processes and
monitored both internally and by protect against emerging threats. plans continue to evolve in response controls to ensure compliance. Extensive
regulators. Our approach to information security to system and process changes. training is planned, to ensure that our
Routine checks are carried out to confirm is closely monitored by the Board. teams are familiar with the complex new
the integrity of our products and working methods.
ingredients. Allergen complaints are fully investigated
We have robust crisis management and appropriate action taken to address
procedures in place, and utilise third party the root cause.
support where appropriate.
All the processes described above are
equally applicable to our franchise
partners.

Greggs plc
48


What is
the risk? OTHER SIGNIFICANT IMPACT OF IMPACT OF CLIMATE
LEGISLATION AND FINES BREXIT PANDEMIC CHANGE
TAXATION FOR NON-
COMPLIANCE
WITH
LEGISLATION
Risk theme REGULATORY COMPLIANCE EXTERNAL FACTORS EXTERNAL FACTORS
Movement N/A
Strategic pillars 1 2 3 4 1 2 1 2 3 4 1 2 3 4 1 2 3 4
Key New legislation may necessitate Large financial penalties could Following the UK’s exit from the The ongoing pandemic could Changes in climate could impact
developments additional processes, or changes be imposed on the business for EU, there remains uncertainty as have an adverse impact on our on our business, both from a
to our operations, such as breaches of legislation relating to the regulatory requirements, operations and the demand for physical perspective and as a
restricting our marketing to many aspects of our operation. with an associated future burden our products. It is likely that result of the transition to carbon
opportunities. This risk is higher in the current on the business. There is the working patterns and shopping neutrality.
Continued growing concern over situation, with broader regulatory potential for disruption at habits will have changed, and
the environment and health may requirements and an uncertain borders. there is the potential for a general
drive the introduction of political and legislative economic downturn. The
additional levies and taxes, or environment. availability of liquidity may be
new government requirements. The rate of change of legislation, restricted.
and the complexity of new
regulations further adds to the
risk.
Key We contribute to the development We have a system of due diligence Actions were taken to ensure that We continue to progress We have recently published our
mitigations of new regulations via controls and monitors in place all appropriate measures were in with the development of our “Greggs Pledge”, which sets out
engagement with industry across the business, to ensure place. Contingency plans will be business model, to provide our our commitment to sustainability.
bodies. that we continue to comply with implemented should there be any products to new customers via The ten objectives will underpin
When new requirements are requirements. Our audit disruption to our operations. new routes, including a rapid our decision making and link
introduced, we take timely action processes confirm correct rollout of our delivery closely to our strategy.
to ensure we are compliant. procedures are being followed. partnership with Just Eat. Our We are taking action across the
varied shop locations reduce our

Our ‘Greggs Pledge’ demonstrates We have Primary Authority business to increase our climate
arrangements in place for Food exposure to loss of high street resilience and improve our
our commitment to operating
Safety, Health and Safety, and footfall. We have demonstrated sustainability.
ethically.
Fire Safety, and have liaised our ability to continue trading
closely regarding our approach through all levels of restrictions.
Greggs plc
to Covid-19. We have secured access to

funding, should it be required.
49
Covid-19

The impact of Covid-19 on the business is –– Engagement with our suppliers helped to ensure –– Rent negotiations have taken place with our landlords,
referenced throughout this report, but set continuity of supply once we were in a position and payments changed to a monthly-in-advance basis;
to recommence production; –– Capital expenditure has been closely managed,
out below is a summary of actions taken –– Reopening was undertaken on a phased basis, including a short pause in our shop-opening programme
to mitigate the risks facing the business. to ensure that we were able to do so safely; and a reassessment of corporate priorities; and
–– We have engaged with key external stakeholders –– The planned rollout of new digital initiatives has been
Our priority throughout has been the safety, health throughout the crisis, including regulatory bodies, accelerated, to provide us with new routes to market.
and well-being of our customers and colleagues. advisors and government agencies; These include our partnership with Just Eat, offering
–– Our teams have been supported with regular delivery and a Click + Collect service.
–– Our crisis management protocols were instigated, with communication, including updates from our
daily meetings of a cross-functional team taking place. Chief Executive throughout the period; The pandemic continues to impact on the business in a
Our full Operating Board has met at least twice weekly –– Prompt action was taken to reduce costs including variety of ways, and we cannot determine future changes
throughout the period; furloughing colleagues and accessing the Coronavirus with any certainty.
–– Government guidelines have been followed as a Job Retention Scheme and other government
minimum at every stage of the pandemic; initiatives, stopping any discretionary spend, and
–– Although not prevented from trading during the first cancelling the 2019 final dividend. We also enhanced
lockdown in March 2020, all shops and all but one of our our regular financial controls;
manufacturing sites were closed while we introduced –– We obtained access to funding through the Covid
policies and procedures so that our operations could be Corporate Financing Facility scheme, subsequently
carried out in a Covid-secure manner, supporting the repaid and replaced with a revolving credit facility
safety of our customers and our teams. In the one site through a syndicate of lending banks;
that remained in operation supplying Iceland Foods, we
rapidly introduced new safe ways of working to include
–– Operational costs have been tightly managed in
our shops, through a reduced range and fewer
“Our priority throughout
social distancing and face shields; trading hours; has been the safety,

–– Appropriate measures were taken to secure –– Action has been taken to limit travel and access to our
closed sites;
–– Where possible, our support teams started to work
sites to cases where there is a clear business need; health and well-being
–– A period of consultation regarding the need to
of our customers and
Greggs plc
from home and have continued to do so throughout reduce resource levels across the business resulted
the pandemic; we have moved to virtual meetings
colleagues.”
in 820 redundancies;
as far as possible;
50
STAKEHOLDER ENGAGEMENT
Our stakeholders

The year 2020 will go down as a Covid-19
dominated year, when boards of directors
were forced to consider the impacts of a
global pandemic on their stakeholders
while trying to maintain business as usual,
ensure survival and plan to emerge better
and stronger.
The world adapted quickly to meeting

virtually, and the Directors found new ways to
gain an understanding of the pressures faced
by the business, and how it could maintain,
as far as possible, its strategic initiatives.
Section 172 statement

Our Section 172 statement describes how the Directors,
individually and collectively, acting in good faith, have
exercised their duties over the course of the year to promote
the long-term success of the Company for the benefit of its
members as a whole, and in doing so have had regard to the
matters set out in section 172(1) (a) to (f) of the Companies

Act 2006.
Greggs plc
51
STAKEHOLDER ENGAGEMENT CONTINUED
Strategic Pillars

1 Great tasting, freshly prepared food 4 First class support teams
2 Best customer experience 5 The Greggs Pledge
3 Competitive supply chain
CUSTOMERS COLLEAGUES SUPPLIERS SHAREHOLDERS LENDERS COMMUNITIES

How and why we engage
1 2 4
5 1 2 3 4 5 1 3 5 1 2 3 4 5 2 4 5 1 5
Our customers are at the Our people are what makes By working collaboratively It is our regulatory obligation Following the arrangement The sheer ‘localness’ of
heart of everything we do. our business successful. We with suppliers who share to inform our shareholders of additional liquidity as a our operations and our
Understanding the role we want to provide them with a our values, we can produce of significant business precaution against further longstanding relationship
play in peoples’ lives is at the great place to work, where high-quality products, while developments. As a result of business interruptions, with The Greggs Foundation
forefront of how we plan and they feel valued. During the having a positive impact the pandemic, we have been lenders are now included in helps us to better
operate, so we’re constantly pandemic, we created a on people and the planet. required to consider the our major stakeholders list. understand the needs of
evolving our proposition to dedicated employee portal, Regular meetings, joint impact on our shareholders Greggs has always our communities and how
remain relevant. By speaking with regular Chief Executive projects, supplier visits and throughout. The Chief maintained good we are best placed to make
to customers in shops, updates. We hold regular our Annual Conference are Executive and the Finance relationships with banking a positive impact. Through
through our Customer Care local listening groups and just a few examples. We use Director lead on engagement partners and has now initiatives such as
and Insight teams and partnership forums across the Ariba platform to qualify with shareholders in relation agreed a syndicate-backed supporting Greggs Breakfast
across our digital channels the business, and have suppliers and a variety of to business performance via revolving credit facility. New Clubs, our food donation
– we’re constantly listening developed channels to tools to support our focus virtual roadshows following communication processes programme and working
and learning so we can provide feedback including on ethics and sustainability. major announcements. have been established to with people in the
understand how best to colleague suggestion The Chairman, Senior ensure that lenders receive community to help get them
serve the nation. scheme ‘Your Ideas Matter’. Independent Director and regular updates on business get back into employment

Remuneration Committee performance, as well as through our Fresh Start
chair also have regular more formal confirmation programme, we aim to
contact with shareholders of covenant compliance. build stronger, healthier
in order to ensure that the communities.
Greggs plc
Board is aware of their

expectations in respect
of governance.
52
STAKEHOLDER ENGAGEMENT CONTINUED
CUSTOMERS COLLEAGUES SUPPLIERS SHAREHOLDERS LENDERS COMMUNITIES

Impact on Board decisions
The health and safety of Perhaps the most significant We understand the We understand our The Board’s experience and Greggs’ support for
our colleagues and decisions taken by the Board significance of our custom shareholders and have up-to-date understanding communities is sponsored
customers is of utmost in the year related to to our suppliers, and the discussed their attitude of the commercial lending at a senior level and so the
importance. When we supporting our 20,000+ pressure they were also to capital allocation. market was very helpful in Board was kept aware of
reopened our shops we did colleagues through the under during the early In the second half of 2021, supporting the executive the pressures being seen in
so under strict Covid-secure pandemic, keeping them stages of the pandemic. as cash became available, team to establish the new the communities where we
conditions, and we utilised as safe as we could when With financial support we prioritised investment revolving credit facility, operate as the pandemic
the space in our shops, to they were at work, and behind us we were able to for growth, knowing that ensuring it provided took hold. In the face of
clearly communicate the maintaining a level of income meet all of our financial shareholders value the sufficient flexibility for our increased food poverty and
important safety messages if they were furloughed. obligations, including those returns made by the current and future needs. hardship in our communities
in line with government Feedback from colleagues to landlords. The Board took business and are prepared the Board felt it more
guidance. Although footfall has influenced the Board’s the view that the strong to prioritise this use of cash important than ever to
related to shopping and office decisions relating to the long-term relationships that in the short term. maintain its support for the
working was significantly working environment and we have with our suppliers work of Greggs Foundation
impacted, there was a clear access to government and landlords are an asset and to maintain partnerships
need for our services from support for job retention. In to the business and it was with organisations that
our customers, many of particular, the participation right to protect this. distribute food to those in
whom do not work in offices of our colleagues in the need, joining BITC’s National
and are classed as key consultation process to Business Response Network
workers. At the same time, re-size the workforce to to bolster our efforts in this
we wanted to offer a service match expected demand area. The Board supported
to customers who were able was successful in minimising policies to encourage
to stay at home and so the number of roles lost. colleagues on furlough to
decided to keep our supply volunteer their time and to
lines open to maintain our donate food and drink to our
supply of ‘bake at home’ lines NHS and key worker heroes.
to Iceland. Our development

teams worked quickly to
rapidly roll out our Click +
Collect and delivery services,
exclusively with Just Eat.
Greggs plc
SEE THE GOVERNANCE SECTION ON PAGES 57-70 FOR MORE INFORMATION.
53
BOARD OF DIRECTORS AND SECRETARY
Teamwork

IAN ROGER RICHARD
DURANT WHITESIDE HUTTON
Chairman OBE FCA
at its best.
Chief Executive Finance Director
Ian has a background in international Roger began his career at Marks and Richard qualified as a Chartered
finance and commercial management, Spencer where he spent 20 years, Accountant with KPMG and gained
with experience in the retail, property, ultimately becoming head of its food career experience with Procter and
hotels and transport sectors. His career business. He was then one of the Gamble before joining Greggs in 1998.
includes leadership roles with the retail founding team of Ocado, serving as
division of Hanson and Jardine Matheson, Joint Managing Director from 2000 to
Like so many we have adapted to communicating Hongkong Land, Dairy Farm International, 2004. From 2004 to 2007 Roger led a
Thistle Hotels and SeaContainers and successful turnaround as Chief
virtually. This has worked well, making it easier he was previously Finance Director Executive of the Thresher Group
to be in regular contact with management. of Liberty International. Ian is an off-licence chain before joining Punch
experienced non-executive director Taverns, ultimately becoming Chief
of several UK-listed companies, having Executive. Roger was awarded an OBE
Ian Durant served on the Boards of Westbury, Home for services to Women and Equality in
Chairman Retail Group and Greene King. He was the 2019 New Year Honours List.
Chairman of Capital and Counties
Properties plc between 2010 and 2018.
Appointed since Appointed since Appointed since

5 October 2011 17 March 2008 (Non-Executive Director 13 March 2006
until 3 February 2013) before becoming
Chief Executive in February 2013
Independent Independent Independent

On appointment N/A N/A
External appointments External appointments External appointments

Chairman of DFS Furniture plc. Member of the Women’s Non-Executive Director and Chair
Non-Executive Director Warren Partners Business Council. of the Audit Committee of The Lakes
& Chair of Employee Ownership Trust. Non-Executive Director Distillery Company plc. Trustee Director
of Card Factory plc. of Business in the Community.
Trustee of Greggs Foundation.

Trustee of The Alnwick Garden Trust.
Greggs plc
54
BOARD OF DIRECTORS AND SECRETARY CONTINUED

HELENA KATE PETER SANDRA JONATHAN
GANCZAKOWSKI FERRY MCPHILLIPS TURNER JOWETT
Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Company Secretary
and General Counsel
Helena worked for Unilever for 23 years Kate was recently announced as the new Peter spent most of his executive career Sandra has been involved in the retail Jonathan is a lawyer by profession and has
holding senior positions in brand Chief Financial Officer at McLaren Group in food manufacturing, having held a sector throughout her career and was held the position of Company Secretary for
management and marketing, including effective from 1 April 2021. She is currently number of executive positions including employed by Tesco PLC, latterly as a number of FTSE 250 and FTSE Smallcap
UK Marketing Director and ultimately CFO at TalkTalk Group plc, and has that of Divisional Managing Director of Commercial Director for Tesco Ireland, companies. His previous employers include
Head of Global Agencies. Helena has previously held positions on the Dixons Hillsdown Holdings, Director of Terranova from 1987 to 2009. Prior to this she worked Avon Cosmetics Limited, SSL International
a PhD in Engineering from the University Carphone plc Executive Committee, (the chilled foods business demerged in sales and marketing roles for Unilever plc, Wagon plc and Bakkavor Group.
of Cambridge. originally joining the Carphone Warehouse from Hillsdown Holdings) and ultimately and Wilkinson Sword.
Group plc in 2010 as Corporate Affairs as UK Managing Director of Uniq plc. More
Director to facilitate the demerger from recently, Peter was European Chairman
TalkTalk. of Hain Celestial Group.
Kate began her career in audit with
PricewaterhouseCoopers, qualifying as
a Chartered Account before moving to
Merrill Lynch as a Director within the retail
sector equity research team, where she
spent the next ten years.
Appointed since Appointed since Appointed since Appointed since Appointed since
2 January 2014 1 June 2019 10 March 2014 1 May 2014 12 May 2010
Independent Independent Independent Independent Independent

Yes Yes Yes Yes N/A
External appointments External appointments External appointments External appointments External appointments
Senior Independent Non-Executive Chief Financial Officer of TalkTalk Group Non-Executive Director Non-Executive Director Member of the British Retail
Director and Remuneration Committee (until March 2021). of Browns Food Group. of Huhtämaki OYJ. Consortium Policy Board.
Chair of Croda International Plc. Chief Financial Officer of McLaren Group Non-Executive Director Chair of the Trustees of the
Owner and manager of a consulting (from April 2021). of Jackson’s Bakery Limited. Percy Hedley Foundation.
business working at a global level with Non-Executive Director of Newcastle
multi-national food businesses. Hospitals NHS Foundation Trust.

Committee Membership Committee Membership Committee Membership Committee Membership Committee Membership
Chair of Remuneration Committee. Chair of Audit Committee. Audit, Remuneration and Nominations Senior Independent Director. Member of Secretary to the Board and all
Member of Audit and Nominations Remuneration and Nominations Committee member. Remuneration, Audit and Nominations its Committees.
Committees. Committee member. Committees.
Greggs plc
55
BOARD OF DIRECTORS AND SECRETARY CONTINUED
The Nominations Committee uses a skills matrix as it assesses the requirements

for new recruits. This is shown below, with incumbents’ attributes:
Ian Durant Kate Ferry Helena Ganczakowski Peter McPhillips Sandra Turner Roger Whiteside Richard Hutton
UK PLC Executive
Director experience
UK PLC Non-Executive
Director outside Greggs
Finance/Banking
Mergers and Acquisitions

HR & Remuneration
Committee experience
Food manufacturing
experience
Food retailing experience

Food safety,
Health & Safety
International experience
Broader consumer
sector experience
Marketing expertise
Digital expertise
Gender diversity

Ethnicity diversity
Corporate governance
Greggs plc
56
GOVERNANCE REPORT – CHAIRMAN’S INTRODUCTION
Our culture and values

will help ensure that
we emerge stronger
from the pandemic.
Dear shareholder,

This year of extreme and constant uncertainty and
disruption to our business from the Covid-19 pandemic
has tested the adaptability and resilience of our staff,
management teams and the Board. This report will
Greggs plc
illustrate how the Greggs corporate governance

regime has operated in 2020.
57
GOVERNANCE REPORT CONTINUED
As you will have seen from my general introduction to this Board composition and roles Culture

year’s report and accounts, the Board has been focused All our Directors have served throughout this year. Helena Alongside the focus on the impact of Covid-19, the Board
on the health and safety of our colleagues and customers Ganczakowski has, as previously advised, taken on the has taken time through the year to continue to reflect on
and the governance issues associated with responding role of chairing the Remuneration Committee and culture and engagement. To assist with this, we undertook
to the pandemic. Peter McPhillips has overseen our colleague engagement a review of our Board culture via Heidrick & Struggles’
activities. As is noted in my statement at the front of this ‘Culture Signature’, programme. We used this during the
The responsiveness of the Board and how it has Annual Report, the Nominations Committee will now be course of our internal Board evaluation of the year, as a
operated considering a process to address CEO succession as Roger pointer towards our key focus and objectives for 2021.
In order to address short-term priorities, and at the same Whiteside approaches retirement age. Consequently, I have Regarding culture across the business, the Board has
time maintain continued oversight of the business with a been asked by the Board to remain as Chair to oversee the continued to devote time to assessing and evaluating this
balanced view of the longer term in an efficient and safe change process. The ninth anniversary of my appointment in a consultative and informed way. More detail on this can
way, all of our Board and Board Committee meetings were, as a Director was on 6 October 2020, and I was appointed as be found on page 63 in this report.
from mid-March onwards, held via video-conferencing. Chair in May 2013, so for a short time during the year we were
We did not have the opportunity to visit the shops, bakeries not fully compliant with Provision 19 of the UK Corporate Stakeholder engagement
and offices to the extent that we would in a ‘normal’ year Governance Code (2018). During the year we considered our approach to engaging
but have kept in touch regularly in other technology- with various stakeholder groups, recognising the
enabled and informal ways. It has been a very busy year for Our people importance of our people, our suppliers (including
the Board, from steering the Company through the first It has been a priority for the Board this year to look after landlords), our owners, the Government and the
lockdown in March when our operations were largely the health and welfare of our people, and listen to their communities in which we operate. You can read more
closed and there was a need to preserve cash and seek views, while at the same time continuing to serve the about our stakeholders and our approach to stakeholder
additional debt finance, through the various tier needs of our customers amid disrupted operating engagement on pages 51 to 53 and 67 to 70. I continue to
restrictions and lockdowns. conditions. Those trading conditions unfortunately welcome feedback from all of our stakeholders on how
necessitated parting company with 820 colleagues in a we are doing in terms of our governance, and where we
programme informed by the values of the Company and might improve our approach.
our previous experience. The effects of the pandemic
on the working arrangements and financial rewards of I took the opportunity to meet (virtually, alongside Helena
our people have been substantial and the Board has Ganczakowski, our Remuneration Committee Chair) with
endeavoured to ensure that there is a balance of interests a number of our major shareholders, to take their feedback
and fairness of treatment. on our new remuneration policy, approved by the
shareholders at the AGM in May, and our plans for

implementing that policy in 2021. We also discussed
potential succession, both for the Chief Executive and
for my role, in anticipation of future change.
Greggs plc
58
Environmental, social and governance As for the AGM, to be held on 14 May 2021 at 9:00am,

At the beginning of 2020, we launched our 2025 we anticipate there are likely to be Covid-19 restrictions
sustainability targets, in the form of the Greggs Pledge. still in place in relation to indoor gatherings. Consequently,
Understandably, further progress and the details of our access to the meeting is unlikely to be permitted. So we
commitments were not released because of the pandemic. would urge shareholders to vote using the proxy form
However, the Board built on those commitments during that will be sent out with the Notice of AGM. We had an
the year, to include our plans for achieving net zero carbon encouraging increase in the number of shareholders
emissions by 2040, and the Greggs Pledge was formally who voted in 2020, with around 73 per cent of the
launched on 24 February 2021. Further reference to our votes cast, an increase from 63 per cent in 2019.
commitments can be found on pages 34 to 40, and full Although we will be running a very low key but compliant
details can be found at https://corporate.greggs.co.uk/ AGM, in line with restrictions currently in place and
the-greggs-pledge/. anticipated to be in place, shareholders will have the
opportunity to view online, and full details are given in the
Our diversity and inclusion programme is moving beyond Notice of AGM. We are looking forward with hope to being
its previous focus on gender, and the coming year should in a position to welcome shareholders to our meeting in
see us reporting on our assessment against the National 2022, with an extended presence online.
Equality Standard.
I invite you to review the following pages, which set out
Revised Articles of Association and 2021 AGM how we have otherwise complied with the UK Corporate
We will be asking shareholders to adopt revised articles Governance Code (2018) across the year, and also our
of association at the 2021 AGM. This is principally to allow statement on page 51 and pages 67 to 70 describing
hybrid physical and online shareholder meetings in the how the Directors have fulfilled their duties to our key
future, but we have also taken the opportunity to update stakeholders under Section 172 of the Companies Act
the articles given that they have not been tabled for 2006.
shareholders since 2010. A summary of the proposed
changes is set out in the appendix to the Notice of AGM, Ian Durant
which in turn is available on the website and a copy of Chairman
which can be requested from the Company Secretary. 16 March 2021

Greggs plc
59
Colleague engagement Given the impact of the pandemic, management’s Before the pandemic struck, members of the Board were

As will be recorded elsewhere, lockdowns, tier restrictions, communication with colleagues was further increased able to attend the annual Management Conference held
and social-distancing needs significantly reduced the through the use of a web portal. This gave both furloughed at The Sage, Gateshead. This allowed Non-Executive
amount of interaction that Non-Executive Directors have and working colleagues access to regular updates from Directors to attend sessions on plans for the year,
had with colleagues. Nevertheless, the well-established the Chief Executive on the impact of the pandemic, including the launch of Next Generation Greggs and the
communication channels with our union colleagues, plans to reopen shops and production sites, and general Greggs Pledge (our ESG programme), and to mix informally
through the Greggs Negotiating Committee, continued to information on how the business was performing. with staff from our shops, supply chain and head office,
be an effective and valuable forum through 2020 and we listening to their views on the Company’s plans. While we
swiftly moved into virtual sessions to facilitate ongoing, In September 2020 we moved into a period of collective have not been able to engage with colleagues to the same
direct and regular communication. The sessions provided consultation with all our colleagues, necessitated by extent in 2020 as we have done in previous years, in 2021
a great opportunity to speak directly with teams to the need to resize the business during the anticipated, we will be exploring the opportunity for further virtual
understand their feedback and concerns as we navigated continuing period of reduced trading as a result of the discussion and debate, until restrictions are lifted.
through the year and were attended by our Chief Executive pandemic. In undertaking this collective consultation,
and by Peter McPhillips who, following his reelection at the management met with both our colleagues and union An Employee Opinion Survey is generally undertaken each
AGM in May, was nominated as our Non-Executive Director representatives on a weekly basis through to November, year. However, in 2020 management decided that, in the
with responsibility for overseeing colleague engagement. across our Retail, Supply and Greggs House teams. Sadly, throes of the pandemic, the expense of the survey would
Sessions included the following: this led to 820 colleagues leaving the business in early not be incurred. However, it is expected that the survey will
November 2020. be relaunched during 2021. Nevertheless, the Board was
–– April 2020 – the first session after the Covid-19 kept apprised of informal feedback received via discussion
pandemic had taken hold. Topics discussed included Following the conclusion of this consultation our relevant groups and social media.
closure of the shops, pay and government support senior management and people teams continued to meet
through furlough and the planned trial for a phased virtually with union representatives from our shops and In 2019, the Chairman was accompanied by Non-Executive
reopening of shops and production centres; across the supply sites, in order to ensure that views could Directors at a series of ‘listening groups’ as part of the
–– May 2020 – The Retail Operations and People Director be heard and decisions made with regards to the day-to-day Board’s engagement programme. One such event was held
accompanied the Chief Executive and talked through management of the business. Discussions generally take in January 2020, when the Chair and Helena Ganczakowski
the shop opening trial, and signage promoting place across the year at both local supply sites and within met with around 20 Greggs House colleagues to discuss the
‘Covid-secure’ opening arrangements for shops retail regions and are referred to as Joint Consultative work of the Board in general, interactions with the Chief
and in bakeries. The plan to move pay for furloughed Committees. They feed into our National Partnership Executive and Operating Board, and more specifically on
colleagues back to 80 per cent of salary or contracted Forums which are jointly chaired by our Head of People and a the work of the Remuneration Committee. Feedback from
hours from 1 July 2020 was also discussed; Head of Retail/Supply Chain. The National Retail Partnership that session was positive, with colleagues feeling able to

–– August 2020 – the Chief Executive shared the half-year forum met much more regularly than normal in order that ask questions in an informal environment. There were no
results and a furlough scheme update (which was then feedback could be sought as operations and guidelines further sessions held in 2020, but there is a plan to restart
due to end in October); and were changed quickly, due to the impact of the pandemic. these in 2021, initially virtually, but hopefully in person when
–– December 2020 – post-redundancy consultation thanks Covid-19 restrictions allow.
Greggs plc
were given, along with a business update and a look to

the future.
60
Investing in and rewarding the Greggs workforce The remuneration of furloughed colleagues was kept at analyst feedback is provided by Hudson Sandler, the

As previously reported, the business had performed 100 per cent until 1 July 2020, when, in fairness to those Company’s financial communications consultants.
exceptionally well in 2019, and the Board was pleased to who continued to work full-time, the remuneration of
be able to reward colleagues with a special payment in those furloughed was reduced to 80 per cent; this was Further information on shareholder engagement is set out
January 2020 to recognise their efforts in the previous year. maintained across the year as colleagues emerged in the s172 Statement on page 51 and pages 67 to 70 and in
from furlough. the Remuneration Report on page 83.
Each year, the team undertakes an annual wage review
with union colleagues, and as a general rule, whatever As noted in page 84 in the Remuneration Report, the Division of responsibilities
is balloted and agreed for shop and supply chain teams pensions contributions for Executive Directors will be The Board considers that the Chair was independent on
is then applied to the management population and to the reduced over a five year period until they match those appointment and that all of the Non-Executive Directors
Directors. Those negotiations didn’t conclude until the contributions available to the workforce. In this respect are independent. Full details are set out below, and
end of February and the plan was to implement the agreed the Company was not compliant with Provision 38 of the remuneration is addressed in the Remuneration Report.
increase of three per cent in the March payroll, backdated UK Corporate Governance code during the year. Away from the boardroom, the Chair communicates
where appropriate. The base pay rate of three per cent was regularly with the Non-Executive Directors, both
subsequently implemented for supply sites and support Board engagement with shareholders collectively and individually, giving them plenty of
teams as of January (backdated in March). The pay award The Chair takes responsibility for ensuring that key opportunity to express their opinions and raise any
for our retail teams was a base rate of three per cent with shareholders are aware of, and supportive of, the Board’s concerns they may have.
an additional 0.6 per cent for certain senior shop grades approach to governance, networking widely across the
and an additional 2.5 per cent for our general team institutional shareholder population, and meeting with Sandra Turner is the Senior Independent Director. Sandra
members (5.5 per cent in total) – this was implemented larger shareholders. In 2020, the Chair met with several chairs at least one meeting of the Non-Executive Directors
in April 2020 in line with the agreement reached with of our largest institutional shareholders, and was annually, without the Chair being present. There is a clear
the union. accompanied by another Non-Executive Director. These division of responsibility between the Chair and the Chief
included sessions covering the remuneration policy that Executive, and terms of reference for each of the Board
As the pandemic hit, and lockdown commenced on was approved at the AGM held in May 2020, and how it committees are in place, having been reviewed and revised
23 March 2020, the Board took several decisions regarding was to be applied. During these sessions the Chair was to ensure they meet the requirements of the Code. The
remuneration. Firstly, it decided that it would be accompanied by Helena Ganczakowski, who took over as precise responsibilities of the Senior Independent Director
inappropriate to proceed with the three per cent salary Chair of the Remuneration Committee from Sandra Turner are set out in a role specification that has been approved
increase for management grades planned for March and, following the 2020 AGM. by the Nominations Committee and the Board.
therefore, this was postponed and subsequently cancelled.
It was regrettable that, because of the pandemic, we were The Board generally schedules six formal meetings per year,

Secondly, the decision was taken to maintain the unable to welcome our ‘retail’ shareholders to our AGM. In and then on an ad hoc basis as required. These meetings may
remuneration of those placed on furlough at 100 per cent anticipation of similar restrictions in 2021, we are looking also be interspersed with informal Board calls, where the
of salary or contracted hours, at least until 1 July 2020, at ways to involve all shareholders by giving them the Chief Executive and the Finance Director provide updates on
while at the same time the Board and Operating Board opportunity to ask questions ahead of the AGM. trading and business matters generally. In 2020, additional
Greggs plc
agreed to a voluntary reduction of 20 per cent of salaries formal meetings were required in order to review and
and fees, and salary-linked benefits e.g. pension Following key announcements, the anonymised views approve the accessing of the Covid Corporate Finance
contributions. This reduction remained in place from of shareholders are reported to the Board by UBS and Facility, and ahead of the launching of the redundancy
61 1 April until 1 September 2020. Investec, the Company’s retained brokers, and press and collective consultation exercise.
Board meetings are well-attended, as the table below shows: Last year it was reported that the Nominations Committee The Nominations Committee is currently supported by

Main Audit Remuneration Nominations
had been reviewing the tenures of all Directors and has Heidrick & Struggles. Based on a recommendation from
Attendance Board Committee Committee Committee prepared a succession timetable to cover the coming five the Nominations Committee, each of the Directors offers
Ian Durant 9/9 – – 3/3 years. As is recorded in the Chair’s Statement on page 58 themselves for reelection.
Roger Whiteside 9/9 – – – in due course we will commence the search for a new
Richard Hutton 9/9 – – – Chief Executive, as Roger approaches retirement age. In The Board receives regular updates from the Chief
Helena Ganczakowski 9/9 4/4 4/4 3/3 recognition of this, and taking into account the disruption Executive on the performance of the Operating Board,
Kate Ferry 9/9 4/4 4/4 3/3 to the business caused by the pandemic, Ian Durant has and a succession plan is tabled so that the Board can
Peter McPhillips 9/9 4/4 4/4 3/3 been asked by the Board to remain as Chair in order to see the talent pipeline for each functional area.
Sandra Turner 7/9 2/4 3/4 2/3 oversee succession. Ian was first appointed to the Board
in October 2011, and became Chair in May 2013. The Board Board evaluation and focus
All Directors have access to the Company Secretary, recognises that by extending his tenure until that date, the The Board conducts an annual evaluation of its activities.
whose appointment and removal is one of the matters Company will not be compliant with Provision 19 of the UK The Board had agreed that in 2020 its focus should be on
reserved to the Board. Corporate Governance Code which observes that the Chair succession planning to include a refreshed skills analysis,
should not remain in post beyond nine years from first continuing to develop stakeholder engagement plans and
Board composition, succession and evaluation appointment to the Board. The Board, led by the Senior the strategic move to Next Generation Greggs. The Board
The Nominations Committee’s responsibilities are set out Independent Director, is of the view that Ian remains fully had also committed to monitor plans to improve allergen
in written terms of reference, available on the Company’s committed, and it is right and proper that Ian remains in labelling, given that the provision of information and
website. Its primary responsibility is to ensure plans are the Chair to oversee such a sensitive and critical protection to customers with allergies had been identified
in place for orderly succession to the Board and Operating recruitment. The potential for this scenario was discussed as a key risk. The Board received regular updates on
Board. The Board Chair is Chair of the Committee, and all with several of our largest shareholders during 2020, progress with Next Generation Greggs across the year,
Non-Executive Directors are members. The Chief whose response was supportive. ahead of the launch of the new Greggs app which is
Executive is a regular attendee at meetings, and from expected to be in the second quarter of 2021. The allergen-
time to time the Finance Director is also invited. The Nominations Committee regularly updates a matrix labelling project brought about by Natasha’s Law was
of the skills brought to the Board by all Directors, both paused because of the pandemic, having got off to a good
There were no appointments to the Board in the year. Executive and Non-Executive, as the succession strategy start in preparing for the legislation that will come into
However, at the AGM in May 2020, Helena Ganczakowski is developed. The current matrix is shown on page 56. Core force in October 2021. Progress included the trialling of
took over as Chair of the Remuneration Committee, with skills that the Board has identified include food retailing tablets containing up to date allergen information for
Sandra Turner remaining as the Senior Independent and manufacturing, and digital and consumer marketing, customers, and new processes to ensure the application
Director, and Peter McPhillips was appointed as the As part of Non-Executive Director succession planning, of the correct ingredient label onto sandwich and other

Non-Executive Director charged with overseeing the Board is seeking another Non-Executive Director, and packaging. The project has re-commenced, and will
engagement with colleagues. with that appointment hopes to make further progress in continue to feature in the Board’s monitoring in the run up
developing a more diverse Board of Directors. to the legislation coming into force.
Greggs plc
62
As part of its succession planning, the Board participated The Board’s second key objective was agreed to be the

in the Heidrick & Struggles’ Culture Signature review. This further development of its diversity and inclusion strategy.
was used as part of the Board’s evaluation of its 2020 The Board had received a briefing in September 2020 on Figure 2: 2021 D&I activity
performance. Findings from that review included: the process for achieving the National Equality Standard
(NES) and the steps required. It was agreed that significant Milestone 1 – NES Leadership Dec
–– There is a very strong, positive culture in the progress should be made across 2021, starting with the consultation 1 2020-
organisation, engendering high regard for colleagues; Board undertaking a discussion on ‘Inclusive Leadership’. Leadership interviews will form part of the Jan 2021
–– There is a high sense of pride and integrity in engaging Our diversity and inclusion (D&I) route map is shown in initial NES assessment to assess levels of NES Leadership
Consultations
current D&I understanding and ambition. This
with colleagues; Figure 1 and the plan for 2021 activities in Figure 2. will identify what will be required to achieve
full proficiency across the leadership NES
–– Whilst a culture of innovation and creativity was among pillar and will inform the development of an
the lower-scoring attributes, nonetheless the scores were inclusive leadership programme.
generally higher than seen in other organisations; and Q1 2021

Milestone 2 – Inclusive
–– The Board should be wary of the potential for Inclusive
Figure 1: D&I route map Leadership Delivery Leadership
‘group think’, ensuring that there is an atmosphere delivery
of ‘healthy conflict’. 5 Delivery of the inclusive leadership session

Assessment to Main Board and Operating Board by EY.
National Equality
Looking back over the Board’s performance in 2020, Standard, The Greggs Milestone 3 – NES Q3 2021
Pledge and our legislative
Leadership consultation 2
NES Leadership
Non-Executive Directors reported that, even though they reporting requirements. consultation 2
had met more frequently across the year, they had felt Further leadership interviews (after document
less engaged with the operational detail than had been 4 submission process and employee listening
through ‘scan’ assessment) to capture further
previously experienced, as the management team coped Colleague networks insight and progress before NES report and
assessment is finalised.
WDP progression, LGBT built on
with the constantly-changing requirements to address Pride, BAME, Listening Groups,
Disability Forum.
issues brought about by the pandemic. Nevertheless,
information flows were good throughout, and the Directors
concluded that the crisis had been well-handled. It was 3
L&D and Recruitment
generally agreed that 2021 should herald a ‘new normal’ Diversity awareness for Managers and
colleagues as well as specific training
bringing back as quickly as a possible the engagement for those who recruit. Engaging ‘middle
activities previously undertaken. management’.
Our Chief Executive recently co-led the preparation of the

As for the focus in 2021, the Board had undertaken a 2
Leadership British Retail Consortium’s ‘Better Jobs D&I Charter’ that

specific session in 2020 on what ought to be the 15% of the NES assessment focuses directly on we have now signed, and which, among other things, seeks
leadership including the Main Board and Operating
Company’s target for achieving net zero carbon emissions. Board, assessing commitment and accountability, to take positive action to support open career opportunity
These are now set out as part of the Board’s sustainability inclusive leadership and visibility and messaging.
and progression. We have also recently joined The Valuable
strategy, known as the Greggs Pledge, which can be found 500, where our commitments to both current and future
Greggs plc
at https://corporate.greggs.co.uk/responsibility/the- 1
Data & Measurement disabled colleagues includes improving the data we hold
greggs-pledge. It was agreed that the ten commitments Robust demographic data capture needs to be in place across
for our colleagues including whether they have a disability,
the employee lifecycle, starting with current colleague
forming the Greggs Pledge would be subject to regular population. This will enable us to assess our current position as and reviewing accessibility in our recruitment processes
63 scrutiny and progress reporting across the year. well as set targets and measure our performance at attraction,
recruitment, succession and retention. and the training we provide.
Women in management Under the authority granted to them in the Company’s Authority to purchase shares

The Board as a whole, rather than the Nominations articles of association, the Board has considered carefully At the AGM on 13 May 2020, the shareholders passed a
Committee, monitors the gender balance in the Company. any situation declared by any Director pursuant to which resolution authorising the purchase by the Company of its
69 per cent of our colleagues are women, with female they have or might have a conflict of interest and, where own shares to a maximum of 10,100,000 ordinary shares of
workers representing the majority of the workforce in our it considers it appropriate to do so, has authorised the two pence each.
retail shops. We have a strong representation of women at continuation of that situation. In exercising their authority,
the most senior level, with three of the five Non-Executive the Directors have had regard to their statutory and other That authority had not been used as at 2 January 2021.
Directors being female, placing us 34th in the FTSE250. duties to the Company.
At Operating Board level, excluding the two Executive The authority remains in force until the conclusion of the
Directors, two out of seven are women and approximately Substantial shareholdings AGM in 2021 or 12 August 2021, whichever is the earlier.
44 per cent of roles reporting into an Operating Board At 16 March 2021 the only notified holdings of substantial It is the Board’s intention to seek approval at the 2021 AGM
Director are held by women. Our Chief Executive sits voting rights in respect of the issued share capital of the for the renewal of this authority.
on the Women’s Business Council and we are pursuing Company (which may have altered since the date of such
improvement in diversity through participation in the notification, without any requirement for the Company Takeover directive information
National Equality Standard. Further information on our to have been informed) were: Following the implementation of the European Directive on
statutory gender reporting can be found on page 23. Percentage
Takeover Bids by certain provisions of the Companies Act
Number of of issued 2006, the Company is required to disclose certain
shares held share capital
Other disclosures additional information in the Directors’ Report. This
MFS Investment Management 10,029,195 9.90
Directors and their interests information is set out below:
Blackrock, Inc. 5,198,552 5.12
The names of the Directors in office during the year,
Standard Life Aberdeen plc 4,215,395 4.17
together with their relevant interests in the share capital of –– The Company has one class of share in issue being
Aviva plc 3,234,535 3.20
the Company at 28 December 2019 and 2 January 2021 are ordinary shares of two pence each. As at 16 March 2021,
set out in the Directors’ remuneration report on page 99. there were 101,495,971 such ordinary shares in issue.
Details of the Directors’ share options are set out in the Additional information There are no shares in the Company that grant the
Directors’ remuneration report on page 98. –– Greenhouse gas emissions: All disclosures concerning holder special rights with regard to the control of the
the Group’s greenhouse gas emissions (as required to Company;
Directors’ indemnities and conflicts be disclosed under the Companies Act 2006 (Strategic –– At general meetings of the Company, on a show of
As at the date of this report, indemnities are in force under Report and Directors’ Report) Regulations 2013 are hands, every shareholder present in person or by proxy
which the Company has agreed to indemnify the Directors, contained in the non-financial KPIs on page 21. has one vote only and, in the case of a poll, every
to the extent permitted by law, in respect of losses arising shareholder present in person or by proxy has one vote

out of, or in connection with, the execution of their duties, for every share in the capital of the Company held by
powers or responsibilities as Directors of the Company. him or her;
The indemnities do not apply in situations where the –– The Company’s articles of association set out the
relevant Director has been guilty of fraud or wilful circumstances in which shares may become
Greggs plc
misconduct. disenfranchised. No shareholder is entitled, unless the

Directors otherwise determine, in respect of any share
held by him or her, to be present or vote at a general
64 meeting either personally or by proxy (or to exercise any
other right in relation to meetings of the Company) –– Under the Company’s code on dealings in securities relevant statutes and the Company’s articles of

in respect of that share in certain circumstances if in the Company, persons discharging managerial association and to such regulations as may be
any call or other sum is payable and remains unpaid, responsibilities and some other senior executives may prescribed by the Company by special resolution;
if the shareholder is in default in complying with a in certain circumstances be restricted as to when they –– Under the CA 2006 and the Company’s articles of
duly-served notice under section 793(1) of the CA 2006 can transfer shares in the Company; association, the Directors’ powers include the power
or if any shareholder has failed to reply to a duly-served –– There are no agreements between shareholders known to allot and buy back shares in the Company. At each
notice requiring him or her to provide a written to the Company which may result in restrictions on the Annual General Meeting, resolutions are proposed
statement stating he or she is the beneficial owner of transfer of shares or on voting rights; granting and setting limits on these powers;
the shares; –– Where, under an employee share plan operated by the –– The Company is not party to any significant agreements
–– A notice convening a general meeting can contain a Company, participants are the beneficial owners of which take effect, alter or terminate upon a change in
statement that a shareholder is not entitled to attend shares but not the registered owner, the voting rights control of the Company, following a takeover bid; and
and vote at a general meeting unless his or her name are normally exercised by the registered owner at the –– There are no agreements between the Company and
is entered on the register of members of the Company direction of the participant; its Directors or employees providing for compensation
at a specific time (not more than 48 hours before the –– The Company’s articles of association may only be for loss of office or employment (whether through
meeting) and if a shareholder’s name is not so entered, amended by special resolution at a general meeting resignation, purported redundancy or otherwise) that
he or she is not entitled to attend and vote; of the shareholders; occurs because of a takeover bid. Details of the
–– Under the Company’s articles of association the –– The Company’s articles of association set out how Directors’ service agreements and terms of
Directors may, in their absolute discretion, refuse Directors are appointed and replaced. Directors can appointment are set out in the Directors’ remuneration
to register the transfer of a share in certified form in be appointed by the Board or by the shareholders in a report on pages 79 to 101. However, provisions in the
certain circumstances where the Company has a lien general meeting. At each Annual General Meeting, any employee share plans operated by the Company may
on the share (provided that the Directors do not exercise Director appointed by the Board since the last Annual allow options to be exercised on a takeover.
their discretion so as to prevent dealings in partly paid General Meeting must retire from office but is eligible
shares from taking place on an open and proper basis), for election by the shareholders. Furthermore, the Employees
where a shareholder has failed to reply to a duly-served Board has resolved that, in line with Corporate Applications for employment of disabled people are always
notice under section 793(1) CA 2006 or if a transfer of Governance Code (2018 revision), all the Directors will fully considered, bearing in mind the aptitudes of the
a share is in favour of more than four persons jointly. be subject to annual reelection by shareholders. Under applicant concerned. In the event of members of staff
In addition, the Directors may decline to recognise any the CA 2006 and the Company’s articles of association, being disabled every effort is made to ensure that their
instrument of transfer unless it is in respect of only one a Director can be removed from office by the employment within the Company continues and that
class of share and is deposited at the address at which shareholders in a general meeting; appropriate training is arranged. It is the policy of the
the register of members of the Company is held (or at –– The Company’s articles of association set out the Company that the training, career development and

such other place as the Directors may determine) powers of the Directors. The business of the Company promotion of disabled people should, as far as possible,
accompanied by the relevant share certificate(s) and is to be managed by the Directors who may exercise all be identical to that of other employees.
such other evidence as the Directors may reasonably the powers of the Company and carry out on behalf of
require to show the right of the transferor to make the the Company all such acts as may be exercised and Significant relationships
Greggs plc
transfer. In respect of shares held in uncertificated done by the Company and are not by any relevant The Group does not have any contractual or other
form the Directors may only refuse to register transfers statutes or the Company’s articles of association relationships with any single party which are essential
in accordance with the Uncertificated Securities required to be exercised or done by the Company in to the business of the Group and, therefore, no such
65 Regulations 2001 (as amended from time to time); general meeting, subject to the provisions of any relationships have been disclosed.
Accountability, audit and going concern The Board’s viability statement made in accordance Political donations

The Board acknowledges its responsibility to present with Code provision C.2.2 can be found on page 46. Greggs has a clear policy forbidding political donations
a fair, balanced and understandable assessment of the or contributions. This includes financial and in-kind
Company’s position and prospects. In order to assist Policies contributions made by the Company.
the Board to comply with the requirements within the Freedom of association
Governance Code, each year the Audit Committee is At Greggs, we recognise the right of all employees to Disclosure of information to the auditor
requested to undertake an assessment of the annual freedom of association and collective bargaining. Whilst Each of the Directors who held office at the date of
report and to make a recommendation to the Board. we do not have a formal Freedom of Association policy, the approval of this Directors’ report confirms that, so far
This request has been enshrined within the Audit Company encourages all its employees in bakeries, shops as they are individually aware, there is no relevant audit
Committee’s terms of reference, which are available and offices to become, and remain, members of a union. information of which the Company’s auditor is unaware,
at corporate.greggs.co.uk. and that they have taken all the steps that they ought to
Bribery and corruption have taken as a Director to make themselves aware of
The actions undertaken by the Audit Committee Greggs has an Anti-Bribery and Corruption policy which any relevant audit information, and to establish that the
in confirming its advice to the Board included the applies to all employees and prohibits the offering, giving, Company’s auditor is aware of that information.
consideration of a detailed review that has been seeking or acceptance of any bribe in any form to any
undertaken by the Head of Business Assurance and person or company by acting on its behalf, in order to gain
reviewing the annual report as a whole to confirm that it an advantage in an unethical way.
presents a fair, balanced and understandable assessment.
In considering the advice of the Audit Committee, and Business conduct
having reviewed the annual report including the contents We have a specific policy that sets out the standards
of the strategic report on pages 2 to 53, together with the of ethical behaviour that are expected of all employees.
statutory accounts themselves, the Board duly considers All graded managers and members of the procurement
the annual report and accounts, taken as a whole, is fair, department are required to make an annual confirmation
balanced and understandable, and provides the necessary of their compliance with the policy.
information for shareholders to assess the Company’s
performance, business model, and strategy. Whistle-blowing
Our ‘whistle-blowing’ policy creates an environment
A statement of Directors’ responsibilities in respect of where employees are able to raise concerns without fear
the preparation of accounts is given on pages 102 and 103. of disciplinary action being taken against them as a result
A statement of auditor’s responsibilities is given in the of any disclosure. Any matters raised are treated in

report of the auditor on page 111. confidence and an independent review will be undertaken
where it is appropriate. The Chair of the Audit Committee
After making enquiries, the Directors have a reasonable is the designated first point of contact for any concerns
expectation that the Group has adequate resources to which cannot be addressed through normal management
Greggs plc
continue in operational existence for the foreseeable processes.

future. For this reason, they continue to adopt the going
concern basis in preparing the accounts (see basis of
66 preparation on page 122).
Board engagement

with stakeholders
The year 2020 will inevitably go down as a Covid-19 dominated year, when boards of directors
were forced into considering their stakeholders in the midst of a global pandemic; trying to
maintain business as usual, ensuring survival and planning to emerge better and stronger.
Social distancing meant that, for most of the year, The table below sets out some of the key matters considered by the Board in 2020
Directors were not able to follow their usual method of
face-to-face engagement with colleagues, investors and
other stakeholders. It was particularly disappointing not
Business as ‘usual’ Strategic ESG
to be able to hold our Annual General Meeting in the North
East, usually so well-attended by local retail shareholders, Trading and financial performance Next Generation Greggs – The Greggs Pledge
including a greater focus on cash flow digital strategy
and former employees.
Shop estate performance Click + Collect/delivery Responsible sourcing – palm oil
and chicken
The world adapted quickly to meeting virtually, and the Customer insight and our competitive Refinancing to survive Covid-19 Diversity & Inclusion strategy
Directors found new ways to gain an understanding of the environment
pressures faced by the business, and how it could maintain Food Safety and Health & Safety Restructuring to reflect lower Distributing food waste
as far as possible its strategic initiatives. trading levels
Employee Opinion Survey & actions Succession planning for Board
The previous year, 2019, was a record year, prompting special and Operating Board
dividends to shareholders, and a one-off cash bonus for every Our DB pension scheme investment
employee on top of the annual profit share, paid in January strategy and trustee succession

2020. The first nine weeks of 2020 (before any financial Dealing with Covid-19
impact of Covid-19) delivered company-managed like-for-like –– Being Covid-secure
sales growth of 7.5 per cent, despite stormy weather in –– Accessing financial support including
February and the flooding of the production centre in Wales. CCFF and CJRS
Greggs plc
Against that background, this statement considers how the Reorganising the shop estate and closing
loss-makers
Directors have approached and met their responsibilities
under s172 Companies Act 2006, with a particular focus on
67 how the pandemic has shaped the Board’s decision-making.
Commentary by stakeholder Looking after our colleagues and customers

Colleagues
The health and welfare of colleagues is of paramount
to emerge from the crisis stronger than ever.
importance, and at no time in recent history has that As an ‘essential’ retailer, our shops were entitled to remain open and trade across the year. However, in the very
been more so than during the pandemic. early days of the pandemic, based on direct feedback, and social media sentiment it was clear to the Board that
our colleagues and customers did not feel ‘safe’ going into our shops, given the warnings coming from
Perhaps the most significant decisions taken by the Board government, and the strong ‘stay at home’ messaging. On 24 March 2020 the decision was taken to close all of
in the year related to dealing with our 20,000+ colleagues our shops, and bakeries, apart from our Balliol savoury production facility and associated packing operation
through the pandemic, keeping them as safe as we could which supplies Iceland Foods.
when they were at work, and maintaining a level of income
if they were furloughed. At that time, there was no real indication of how long the pandemic might affect the business, and the decision
was taken that those colleagues who were furloughed should be paid at 100 per cent of their salary, or their
Customers contracted hours as appropriate, until at least 1 July. After that date, the Board concluded that it was fair and
Following the closure of our shops for three months during reasonable to recognise the huge effort being put into responding to the pandemic initially by the few who were
national lockdown, we did not know what to expect when not furloughed, and subsequently by a growing number of colleagues as the shop and production estate started
we reopened in July with social distancing restricting to reopen. As a result, furloughed colleagues were paid at 80 per cent of their salary or contracted hours for so
normal customer behaviour. The health and safety of our long as they remained on furlough.
colleagues and customers is of upmost importance and
to this end, we were very careful not to promote Greggs In the Balliol factory, which we kept open alongside our Iceland packing operation at Seaham, Covid-secure
in a way that would encourage customers not to adhere measures were developed to keep colleagues safe. Activities included maintaining social distance and changing
to guidelines and at one point, abandoned opening trials working practices to achieve this, reducing numbers allowed in canteens, and creating one-way systems. As
because of excess social media excitement. planning for reopening the shops was developed, perspex screens were introduced to protect colleagues and
customers, sanitiser made available, and where space allowed one-way systems introduced.
Once we did reopen, it was under strict Covid-secure
conditions, with full counter screening and risk assessed It was clear to the Board that, in the throes of the pandemic, with outcomes uncertain, it was critical that the
procedures for our colleagues. We utilised the space in our impact of the pandemic on colleagues should be central to the Board’s thinking on how the business would
shops usually dedicated to marketing messages, such as emerge from the crisis in a stronger position for the future.
our windows and digital screens, to clearly communicate
the important safety messages in line with Government
guidance. Customers were reminded about social as key workers. To give them the best possible service, During the months of closure, we did our best to maintain

distancing, the use of masks and sanitiser, promoting we concentrated on providing their bestselling favourites. customer engagement with fun marketing initiatives which
contactless payment and limiting customer numbers included helping customers create their Greggs favourites
into shops. At the same time, we wanted to offer a service to at home by sharing recipes for our most famous products
customers who were able to stay at home and so kept our and providing ‘how to’ guides and videos.
Greggs plc
It soon became clear that although footfall from shopping supply lines open for Iceland. In addition, our development
and office working was significantly impacted there was teams worked quickly to rapidly roll out our Click + Collect
a clear need for our services from our customers, the and delivery services, exclusively with Just Eat.
68 majority of whom do not work in offices and many classed
Suppliers Shareholders so that any potential concerns from shareholders could be

The decision to close shops at very short notice had The Board has a regulatory obligation to inform identified and addressed, and consequently 95.7 per cent
a major impact on suppliers, because production sites shareholders of significant developments in its business, of those shareholders who voted were in favour of
were also shut down. Significant steps were taken by and the impact of the pandemic has required the Board approving the new policy.
management to redirect supplies away from production to consider the impact on shareholders throughout. The
sites, to minimise food waste, in the hope that supplies biggest decision that the Board had to make in the year Later in the year, the Chair and Remuneration Committee
could be used elsewhere. Future orders were cancelled, in relation to shareholders was to cancel the dividend Chair consulted with a number of shareholders concerning
but payment obligations were met where mitigation was that had been proposed with the Preliminary Results. the proposed implementation of the approved policy, in
not possible. The Board recognised the importance of On 23 March, the Board informed shareholders that light of the impact on the business of Covid-19. The Board
maintaining future relationships with suppliers as part of regrettably no final dividend for 2019 would be paid, as the recognises the importance of regular and open
the business’ recovery from the pandemic, and therefore Board sought to preserve cash whilst it still had significant communication with its shareholders.
every effort was made to help suppliers find new outlets outgoings to meet, including to landlords, and the wages
for their supplies. and salaries of those who continued to work. This was the Regrettably, the Board was not able to meet with the 80
first time since listing in 1984 that the Company had been or 90 retail shareholders that regularly attend the AGM.
Engagement – The Board had a reduced level of unable to pay a dividend, and the Board recognised that Despite ongoing uncertainties, options are being developed
engagement with suppliers in the year, but continued to this would have wide-ranging implications generally, for engaging with all shareholders in the coming months, and
receive reports on management’s activities in both for institutional investors who manage various the hope is that there can be a return to normality in 2022.
procurement, and on the impact on our own supply chain investments and pension schemes, but also for retail
operations. Prior to the first lockdown, Peter McPhillips investors who rely on dividend income. The Board had Lenders
had accompanied our Commercial Director to a third-party clear line of sight to the cash flows needed to allow the For the first time since the mid-1990s, the Company
bakery production centre, to understand the similarities business to survive, which would require accessing needed to access significant levels of borrowing in order to
and differences between that operation and our own. borrowing, and therefore the decision to preserve cash ensure that it had sufficient cash to survive the pandemic.
was on balance in the best interests of the Company. When the business largely closed down in March 2020,
several workstreams sought to access sources of funds
Engagement – the Chief Executive and the Finance to meet cash requirements. These included government-
Director lead on engagement with shareholders in relation backed schemes, like the Covid Corporate Finance Facility,
to business performance. This is done through roadshows and the potential need to ask shareholders for support.
following major announcements, and in 2020 those The Company had already started to consider putting in
meetings were only done virtually. Additionally, across place financing via a commercial banking partnership, and
the year the Finance Director will speak with shareholders this project gained significant added impetus. The Board

and prospective shareholders. created a committee to support the Finance Director as he
developed each of these options. Thankfully, the Company
In 2019 and into 2020, the Chair and Remuneration was successful in accessing the CCFF, and drew down
Committee Chair engaged with a number of our major sufficient funds to keep the company solvent even if shop
Greggs plc
shareholders ahead of the renewed remuneration policy closures lasted the remainder of the calendar year.
resolution being tabled at the AGM in May. This was done
69
In December 2020, the CCFF moneys were repaid in full, The company has also made significant contributions to the

and replaced with a Revolving Credit Facility with two communities in which it operates in other ways, including:
commercial banks, Barclays and Lloyds.
–– When we had to close our doors at the start of the
Engagement – The Finance Director is primarily national lockdown in March, we made it our mission to
responsible for the relationship with providers of redistribute all unsold and surplus food to those in need
commercial lending. He and a small team participated in a and we maintained our partnerships with organisations
selection process involving a number of potential lenders, that distribute food throughout 2020;
and ultimately brought the final decision on participation –– Joined the National Business Response Network to
to the Board for approval. Going forward, the Finance really bolster our efforts in this area and support even
Director will undertake regular dialogue with lenders, more people;
and they will become a key part of the Company’s –– We organised deliveries of sweet treats and drinks to
stakeholder population. the NHS and key worker heroes as a small token of
our gratitude; and
In the Board’s view, this brings a new stakeholder group –– Encouraged colleagues on furlough to volunteer
into its future consideration, as the Board will now develop their time.
its relationship with those commercial banks.
By order of the Board
Communities
Greggs has a long tradition of showing that it cares about Jonathan D Jowett
a broad range of stakeholders, and extended reference Company Secretary
can be found on pages 35, and 52-53 of this report. Greggs plc (CRN 502851)
The Greggs Foundation is a beneficiary of at least one per Greggs House

cent of the Company’s annual profits, and the Board has Quorum Business Park
had to consider the impact of 2020 on its ability to support Newcastle upon Tyne
the charitable activities of Greggs Foundation. In the face NE12 8BU
of increased demand for hardship and food poverty
support, the Board felt it more important than ever to
maintain its support for Greggs Foundation.

This continued support enabled the Greggs Foundation
to help families facing crisis as a result of the pandemic,
through their hardship grant and emergency grant
Greggs plc
programmes and tackling holiday hunger programme.

More can be found on pages 32-33.
70
AUDIT COMMITTEE REPORT
Audit Committee Report

Dear shareholder The Committee continues to keep its activities under Overall, I am satisfied that the activities of the Committee
review in the light of regulatory developments and the enable it to gain a good understanding of the key matters
As Chairman of the Audit Committee, emergence of best practice. The Company has faced a impacting the Company during the year along with
number of accounting, reporting and risk-management oversight of the governance and operation of its key
I am pleased to present the report of the
challenges in 2020 as a result of the Covid-19 pandemic controls, and ultimately to draw the conclusions set out in
Audit Committee for the 53 weeks ended and its impact on the business. The Committee has tried the following report. I will be available at the AGM to answer
2 January 2021. to ensure that its reporting on this is clear and allows any questions about our work.
users of the accounts to understand the impact on our
The Committee plays an important part in the governance performance, position and prospects. There is further Kate Ferry
of the Company with its principal activities focused on the detail on the most significant judgements made in the Chair of the Audit Committee
integrity of financial reporting, quality and effectiveness body of this report. 16 March 2021
of internal and external audit, risk management and the
system of internal control. As previously announced, the Committee conducted
an audit tender during the year, as a result of which it
In this report, I aim to share some of the Committee’s recommended to the Board that RSM UK Audit LLP be
discussions from the year, providing insight regarding the appointed as auditor. The Board has accepted this
role of the Committee, the main matters considered by recommendation and will propose the appointment of
the Committee during the year and the conclusions drawn. RSM UK Audit LLP at the forthcoming AGM. This report
The Committee meets formally at key times within the includes further details of the tender process. I would like
reporting calendar and the agendas for its meetings are to record my thanks to KPMG for their work as auditor to
designed to cover all significant areas of risk over the the Company for many years.
course of the year and to provide oversight and challenge
to the key financial judgements, controls and processes Key topics for consideration by the Committee in 2021

that operate within the Company. will be the development of climate-related reporting in
order that the Company is reporting in line with Task Force
on Climate-related Financial Disclosures (‘TCFD’)
Greggs plc
requirements that come into force by 2022 along with

continuing to ensure that the impacts of the ongoing
pandemic are clearly reported and accounted for.
71
AUDIT COMMITTEE REPORT CONTINUED
Composition Role and responsibilities Meetings during the year

The Audit Committee is comprised of the following: The Terms of Reference of the Committee can be The Audit Committee met four times during the year.
accessed at: http://corporate.greggs.co.uk/investor- Details of Committee members’ attendance are given
Kate Ferry (Chair) centre/corporate-governance/Company-documents. on page 62.
Helena Ganczakowski The key responsibilities of the Audit Committee are:
Peter McPhillips –– ensuring that the accounting and financial policies The Committee normally invites the Company Chair, the
Sandra Turner of the Company are proper and effective; Executive Directors, the Head of Business Assurance and
–– assisting the Board in fulfilling its oversight the external auditor to attend its meetings. Time is set
It is the practice of the Company for all independent responsibilities by monitoring the integrity of the aside bi-annually for discussion with the external auditor
Non-Executive Directors to serve as members of the accounts and information published by the Company and with the Head of Business Assurance, in each case
Audit Committee. and reviewing significant financial judgements in the absence of all Executive Directors. The Committee
contained in them; also has access to the Company’s management team and
Training is provided for any new members of the Audit –– advising the Board on whether it believes the annual to its auditor and can seek further professional advice,
Committee by way of a thorough induction process which report and accounts, taken as a whole, is fair, balanced at the Company’s cost, if required. The Chair has regular
includes access to the external auditor, the Head of and understandable and provides the information contact with the Finance Director, and internal and
Business Assurance and relevant members of necessary for shareholders to assess the Company’s external auditors, in addition to scheduled Committee
management. position and performance, business model and meetings to ensure that emerging issues are addressed.
strategy; She also has access to an audit partner independent of
The Directors’ biographies on pages 54 to 56 detail –– reviewing the internal financial controls and the Group’s the partner responsible for the audit.
the Committee members’ previous experience and approach to risk management;
demonstrate that they have experience individually in –– overseeing whistle-blowing arrangements;
a range of disciplines relevant to Greggs’ business. The –– monitoring compliance with the Listing Rules and the
Board considers that Kate Ferry has recent and relevant recommendations of the Governance Code;
financial experience. –– overseeing the Company’s external and internal
auditors and reviewing the effectiveness and objectivity
of the audit process; and
–– reporting to the Board on how it has discharged its
responsibilities.

Greggs plc
72
Financial reporting During the year, and up to the date of this report, the Committee considered key accounting

In 2020 the Audit Committee reviewed the 2019 annual report, interim results, preliminary issues and judgements and related disclosures in the Group’s accounts. The significant
results announcement and reports from the external auditor on the outcome of their areas of judgement considered by the Committee in relation to the accounts for the
reviews and audits. 53 weeks ended 2 January 2021 are as follows:
Area of focus Action taken
Impairment of assets
Property, plant and equipment and right-of-use assets are reviewed for impairment if events or The Committee reviewed management’s assessment of the impact of the Covid-19 crisis on the
changes in circumstances indicate that the carrying value may not be recoverable. When a review shop estate and concurred that it constitutes an impairment trigger and that all shops should be
for impairment is conducted the recoverable amount is estimated based on either value-in-use tested for impairment. It has reviewed the assumptions made and the resulting impairment
calculations or fair value less costs of disposal. Both value-in-use and fair value less costs of charges and provision for onerous costs and dilapidations and has concluded that the principles
disposal calculations require management to estimate future cash flows generated by the assets and judgements applied were appropriate.
and an appropriate discount rate. Consideration is also given to whether the impairment
assessments made in prior years remain appropriate based on the latest expectations in respect
of recoverable amount. Where it is concluded that the impairment has reduced, a reversal of the
impairment is recorded.
The Covid-19 crisis has meant that all shops have had periods of no, or reduced, sales during the
period and the rate of recovery of sales is inherently uncertain. This is considered to be an
impairment trigger and as a result all shops have been tested for impairment.
As a result of the crisis and following the shutdown period a decision was made not to reopen
38 shops. All shop fittings and right-of-use assets for these shops have been fully impaired at
a cost of £5.4 million. In addition, a provision of £2.5 million was made for onerous costs and
dilapidations directly related to these closures which is expected to be utilised over the remaining
term of these shop leases. The assumptions regarding the lease term in respect of these shops
were reviewed and where required the lease liability was remeasured.
For the remainder of the estate, an impairment review was carried out using the assumptions
set out in the basis of preparation on pages 123 and 124. As a result of this review an impairment
provision of £8.6 million has been recognised in respect of shop fittings and right-of-use assets
for a further 87 shops. The sensitivities of the assumptions on this amount are also set out on
page 124.

Greggs plc
73

Accounting for leases
IFRS 16 Leases became effective for 2019 and was adopted by the Group on 30 December 2018. The Committee continues to review and monitor developments in this area to ensure that
As a result of this, lease liabilities, representing the obligation to make lease payments, are judgements made are up to date and remain valid and that the approach adopted is still
recognised on the balance sheet together with corresponding right-of-use assets. In the income appropriate to the Group’s circumstances.
statement rent costs were replaced by a straight-line depreciation charge on each right-of-use
The Committee considers that the judgements made are appropriate to the Group’s particular
asset and an interest charge that reduces over the lease term.
circumstances.
At the end of 2020 the Group has recognised right-of-use assets of £270.2 million
(2019: £272.7 million) and lease liabilities totalling £291.7 million (2019: £275.7 million).
Charges to the income statement of £51.9 million (2019: £50.8 million) in respect of depreciation
and £6.5 million (2019: £6.6 million) in respect of interest were recognised.
Understanding and treatment of exceptional items

The accounts include exceptional items in the current year. The Committee considered the accounting requirements of IAS 1 relating to the separate
disclosure of material items of income or expense together with the FRC’s guidance on the
Total exceptional costs of £0.8 million were incurred in 2020 (2019: £5.9 million).
subject, with reference to:
This relates to the restructuring of supply chain operations and in both the current and prior year
comprises mainly the one-off costs associated with the transfer of activity between sites as we i. the costs arising from the decision, announced in March 2016, to invest in and reshape the
consolidate our manufacturing operations into centres of excellence – a full breakdown for both Company’s supply chain in order to support future growth;
years is given in Note 4 to the accounts. ii. the impact of the Covid-19 crisis on activity and financial performance in 2020; and
iii. the provision of £7.0 million in 2019 for the special ‘thank you’ payment made to colleagues in
January 2020.
The Committee ensured that consistent principles were established (and agreed with the external
auditor) early in the process and that reporting is suitably clear. The Committee gave careful
consideration to the judgements made in the separate disclosure of non-underlying items, both
in respect of events occurring in 2020 and also changes in circumstance in respect of provisions
relating to events from prior years, ensuring that the annual report as a whole presents a balanced
view, including the presentation of GAAP and non-GAAP measures.
It concluded that separate disclosure should not be made in the income statement of any of the
impacts of Covid-19 in 2020. The strategic report and financial review describe these in some
detail and the Committee considers that disclosures throughout this annual report allow users
to understand the impact on the Company’s position and financial performance.
In applying a consistent approach to separate disclosure of exceptional items the Committee

concluded that separate disclosure be made of charges incurred in 2020 related to the supply
chain investment programme but not the charges in 2019 related to the ‘thank you’ payment to
colleagues. The supply chain investment programme is now largely complete and it is unlikely that
any remaining costs associated with it will be sufficiently material to be separately classified.
Greggs plc
74

Accounting for defined benefit pension schemes
The determination of the defined benefit obligation depends on the selection of certain Pension scheme liabilities are assessed on behalf of the Company by independent actuaries.
assumptions including the discount rate, inflation rates and mortality rates. The Committee assessed the underlying assumptions and concluded that they were appropriate
and also discussed the appropriateness of the assumptions with the external auditor.
The net liability held in relation to defined benefit pension schemes at the end of 2020 was
£11.9 million (2019: £0.6 million).
Fair, balanced and understandable

The Committee is responsible for advising the Board on whether it believes the annual report The Committee received a report from the Head of Business Assurance who is not involved in the
and accounts, taken as a whole, is fair, balanced and understandable. preparation of the annual report and accounts and who conducted an independent review of it.
The following factors were considered during the course of this review:
–– ensuring that all the statements are consistent with one another;
–– verifying that figures in the narrative sections are consistent with the relevant financial detail;
–– identifying any duplication of information;
–– ensuring that the disclosure of non-underlying items is balanced;
–– confirming that ‘bad news’ is included, as well as ‘good news’; and
–– highlighting any inappropriate use of technical language or jargon
The Audit Committee considered the feedback from this report alongside its own review of
the annual report and accounts when making its recommendation to the Board regarding fair,
balanced and understandable.
Going concern
The accounts continue to be prepared on a going concern basis. Information provided by the Finance Director regarding future financial plans, risks and liquidity
was presented to the Committee to enable it to determine whether the going concern basis of
accounting remained appropriate.
In light of the impact of social distancing and lockdown measures a particularly cautious view
of trading conditions was used, along with plausible downside scenarios.
The Committee reviewed and challenged the assumptions used and concluded that the Board
is able to make the going concern statement on page 66 of the Directors’ report.

Greggs plc
75

Viability
The Board is required to consider the period over which it is able to conclude that the Company The Committee reviewed the process undertaken by management to support and allow the
will remain viable, having taken into account severe but plausible risks and risk combinations. Directors to assess the Group’s long-term prospects and make its viability statement. The
Committee considered and provided input into the determination of which of the Group’s principal
risks and combinations thereof might have an impact on the Group’s liquidity and solvency.
The Committee reviewed the results of management’s scenario modelling and the stress testing
of these models. The Committee reviewed and challenged the assumptions used and concluded
that the Board is able to make the viability statement on page 46 of the strategic report.
The Committee also considered other key accounting issues process with particular reference to audit planning, design practice, in particular ensuring the independence of
and related disclosures in the Group’s accounts as follows: and execution of a remotely-conducted audit. potential audit firms.
–– whether any changes in accounting policy were required The Committee also considered the effectiveness of the A range of firms were approached, including the ‘big four’
following changes in the business or in legislation; audit through the reporting from and communications with (other than KPMG) and mid-tier firms, and invited to express
–– whether the Company’s tax policy remains appropriate; the auditor and an assessment of the auditor’s approach to their interest. Interested firms were subsequently
–– the impact of changes in accounting standards and their key areas of judgement and any errors identified during the requested to complete a detailed Request For Proposal
relevance, if any, to the Company; and course of the audit. (‘RFP’) and the Committee shortlisted firms to be considered
–– reports from the Company Secretary and Finance in a full tender process. During the tender process, which of
Director which assess the Company’s compliance with The Committee concluded that the audit was effective necessity was conducted entirely remotely, each shortlisted
the Listing Rules. and that the relationship and effectiveness of the external firm was invited to meet with the Audit Committee Chair,
auditor be kept under review. Chief Executive, Finance Director and members of senior
External audit and operational management. Following these meetings,
Assessing external audit effectiveness Appointing the auditor and safeguards on non-audit formal tender documents were submitted and each firm
The Audit Committee discussed and agreed the scope of services presented their proposals. The firms were judged against
the audit with the external auditor and agreed their fees The Committee’s policy on auditor appointment is to objective criteria that had been determined in advance of
in respect of the audit. An increase in the audit fee was consider annually whether to conduct an audit tender for the process and shared with the firms at that point.
agreed in order to reflect the additional work required audit quality or independence reasons. KPMG has been
as a result of trading conditions in 2020. the Company’s auditor for more than 20 years. In order Whilst it appreciated the quality of all proposals submitted
to comply with the Statutory Audit Services for Large by the shortlisted firms, the Audit Committee considered

The Committee reviewed the effectiveness of the external Companies Market Investigation (Mandatory use of that the submission and team from RSM UK Audit LLP
audit in line with the Financial Reporting Council’s ‘Practice Competitive Tender Process and Audit Committee (RSM) better met the predefined criteria it had set. It
aid for audit committees’ (December 2019). It considered the Responsibilities) Order 2014 the Company is required to has therefore recommended to the Board that RSM be
Greggs plc
results of external quality inspections by the Audit Quality change audit firms no later than the conclusion of the 2020 appointed as auditor, subject to shareholder approval,
Inspection Team on other KPMG clients. It sought feedback audit. During 2020 the Audit Committee has conducted a for the 2021 financial year onwards. The Board was happy
from senior management, by way of a detailed full tender exercise for the appointment of a new auditor, to accept this recommendation and intends to propose
questionnaire, in respect of the effectiveness of the audit in compliance with legislation and FRC guidance on best RSM’s appointment at the AGM to be held in May 2021.
76
It is the responsibility of the Committee to monitor the In 2020, non-audit fees paid to KPMG LLP and related KPMG Risk Management Process

independence and objectivity of the external auditor operations amounted to £15,000 (which is 7.7 per cent of The Audit Committee receives an update on risk
(including the impact of any non-audit work undertaken the audit fee for the year) and related to the audit of management at each of its meetings. This is supplemented
by it) and its suitability for reappointment. turnover statements required by shop landlords. with a more detailed review of the process on an annual
basis. In addition, an annual risk report presents a
The Company has a formal policy to ensure that the Appointment of auditor summary of key activities, including recording any new and
provision of non-audit services by the external auditor In accordance with Section 489 of the Companies Act 2006, emerging risks. This process allows the Committee to fulfil
for non-audit work does not compromise the auditor’s a resolution for the appointment of RSM UK Audit LLP will its accountability for overseeing the effectiveness of risk
independence or objectivity. It monitors the level and type be proposed at the forthcoming AGM. management, and confirming that arrangements are
of non-audit fees on an annual basis and ensures that the appropriate.
overall level of non-audit fees remains in line with current Risk management and internal control
ethical guidance governing the accounting profession. Internal Control The risk-management process is explained in more detail
The Audit Committee receives updates from Business on page 45.
The Audit Committee favours a presumption that non-audit Assurance on the internal control environment at each
work will be awarded to a firm other than the audit firm meeting, both from a risk and an internal audit perspective.
unless there is a good reason to use the auditor. An annual This regular reporting ensures timely review of any key
base plan for non-audit fees paid to the external auditor is issues. Internal audits concluding only limited assurance
agreed in advance by the Audit Committee. Expenditure in are considered in greater detail, allowing Committee
accordance with this plan can then be committed without members the opportunity to satisfy themselves that
further referral to the Audit Committee. Expenditure that is suitable actions have been taken or are in progress to
not included in the agreed plan is subject to strict authority comply with recommendations.
limits and is reviewed by the Committee.
Whistle-blowing
All use of the external auditor for non-audit work must The Company’s whistle-blowing policy is available to all
be reported to and approved by the Committee. In colleagues via the intranet, as well as via posters displayed
circumstances where non-audit fees are significant across the business. This gives information regarding how
relative to the audit fee an explanation would be provided to raise a concern in strict confidence. No significant
in the subsequent Audit Committee Report. In addition, disclosures were made during the year, though four
the Audit Committee ensures that the external auditor has concerns were reported, all relating to staff behaviour
its own policies and is subject to professional standards in shops and production sites. All events were reported

designed to safeguard their independence as auditor. directly to the Chair of the Audit Committee. All instances
have been investigated and appropriate action taken to
The Audit Committee has reviewed whether, and is resolve the concerns satisfactorily.
satisfied that, the Company’s current auditor, KPMG LLP,
Greggs plc
continues to be objective and independent of the Company.

KPMG LLP did perform non-audit services during 2020 for
the Group but the Audit Committee is satisfied that its
77 objectivity was not impaired by such work.
Key areas subject to specific review by the Committee Internal audit

include the following: The work of the internal audit function is set out in more
detail within the principal risks and uncertainties
Financial reporting All judgemental areas in the accounts are considered by the Committee, to provide challenge to the process. statement on pages 45 to 50 of this annual report. The
The impact of Covid-19 has driven a focus on the approach to impairments and other provisions, IFRS16 team is led by the Head of Business Assurance, supported
implications, IAS20 (accounting for government grants and disclosure of assistance), and exceptional by 16 auditors, along with the Data Protection Analyst.
costs in particular. The majority of the audit resource is dedicated to the retail
Tax compliance An update on the Company’s tax compliance was presented to the Committee, which was satisfied with the estate, providing the Audit Committee with assurance that
approach being taken.
the required controls for safe operation in the Company’s
Task Force on Climate- The Committee considered and confirmed the proposed approach to adopting TCFD requirements. shops are in place and operating effectively.
related Financial
Disclosures (TCFD)
External auditor The Committee has approved the appointment of a new external auditor, having been involved at all stages
The Business Assurance team presents an annual plan
appointment of the tender and selection process. to the Audit Committee for approval, setting out how the
Cyber risk and Cyber risk and information security is considered at every Audit Committee meeting, with the Head of resource will be allocated across the business. Progress
information security Business Assurance providing an update on activity. This allows the Committee to satisfy itself as to the against this plan is monitored at subsequent meetings
adequacy of arrangements. throughout the year. The effectiveness of the team and
New and emerging risks New and emerging risks are considered by members of the Risk Committee at each of its meetings. its level of resource are reviewed by the Committee at
Where appropriate, these are included in the strategic risk register. least annually, including a consideration of outputs,
Any significant matters are escalated to the Audit Committee for further discussion. and customer feedback received.
Any other areas which Committee members believe should be recorded in the risk register are highlighted
and discussed within the course of regular meetings. Committee effectiveness
Review of principal risks The Risk Committee discussed the key risks faced by the business and used this to inform its preparation Each year the Committee reviews critically its own
and uncertainties of the statement of principal risks and uncertainties. This in turn was considered by the Audit Committee performance, assisted by consideration of a series of
after the year end, and approved for inclusion in this report, on pages 45 to 50.
questions, and considers where improvements can be made.
Viability and going As part of the annual report review, the Committee has considered the viability statement and agreed the
concern status various scenarios modelled in support of this assessment.
Kate Ferry
The Company’s adoption of a going concern basis for accounts preparation was reviewed at the mid-year,
Chair of the Audit Committee
as well as during the consideration of the annual report.
16 March 2021
Internal audit function The Committee has reviewed the work and output of the internal audit function, and concluded as to its
effectiveness.

Greggs plc
78
DIRECTORS’ REMUNERATION REPORT
Directors’ Remuneration

Report
Dear Shareholders
On behalf of the Remuneration Committee (the “Committee”),

I am pleased to present our Directors’ remuneration report for 2020
and my first as Chair of the Remuneration Committee.
In what has been an unprecedented year for the business our focus has been to continue The annual remuneration report, together with this Chair’s Statement, will be subject to an
our transparent and open approach to remuneration at Greggs, taking into account the advisory shareholder vote at the 2021 AGM.
experience of our colleagues, shareholders and wider stakeholders during the year. We
have kept our report clear, simple and easy to read, providing explanations and rationale Remuneration policy
to our decision-making throughout the report and in particular in response to the impact Our remuneration policy consists of the following elements:
of Covid-19 on the business.
–– fixed pay – base salary, pension and benefits; and
The report is made up of three key sections: –– variable pay – annual bonus (paid in both cash and deferred shares) and performance
share plan (‘PSP’) measuring long-term performance and delivered in shares.
–– My annual Chair’s letter;
–– Our three-year remuneration policy report, which sets out a summary of the Directors’ The Committee believes that this structure has served us well and its flexibility means that
remuneration policy. This policy was formally agreed at our AGM held on 13 May 2020; and it will continue to work well, despite the Covid-19 related impact on the business and the

–– Our annual remuneration report, split into sections that set out: shape of the business coming out of the pandemic. It is simple and consistent, with pay
A. How our policy links to strategy and reward across the wider workforce outcomes dependent upon performance linked to our business strategy and recovery
B. Remuneration Committee activity for the 53 weeks ended 2 January 2021 plans as well as taking into account our wider workforce remuneration and specific
C. How Directors’ remuneration will be implemented in 2021 in line with the approved Greggs culture. It ensures a significant proportion of pay is delivered in shares to provide
Greggs plc
policy; and alignment with investors and incorporates other best practice features in line with the
D. How our remuneration policy was implemented in 2020. This is an audited section of UK Corporate Governance Code and investor guidelines.
the report outlining the remuneration of the Executive and Non-Executive Directors
79 during the 53 weeks ended 2 January 2021.
DIRECTORS’ REMUNERATION REPORT CONTINUED
Actions taken in 2020 in response to Covid-19 Sadly, ongoing lockdown constraints resulted in 820 redundancies in September – these

Unfortunately, as with the wider economy and society, this year’s financial results have were minimised through consultation with our colleagues and reducing hours to mitigate
been severely impacted by Covid-19. The Chairman’s Statement and the Chief Executive’s job losses where possible. Weekly website updates were provided to ensure colleagues
Report explain the impact of the pandemic on our business and its financial consequences, were kept fully informed on business information and guidance was provided to assist
as well as the details behind the closure of our shops and the impact of local lockdowns. them with their wellbeing and enable them to access support through both the business
and the Greggs Foundation.
This is in stark contrast to the exceptional performance of the business and stakeholder
experience right up to the onset of the pandemic. 2019 delivered record-breaking results The business received government support in the form of the Job Retention Scheme,
and share price performance; shareholders received a special dividend and our colleagues and debt financing to support its short-term liquidity requirements which included a
contribution to success was recognised with a £7 million thank-you payment in January CCFF loan from the Bank of England (subsequently repaid in December 2020). All payments
2020 in addition to the annual profit share they received in March. We understand how to landlords were fulfilled and local communities and colleagues were supported through
challenging the change in circumstances in this past year has been for our teams, as well the Greggs Foundation with the provision of hardship relief grants and the offer of
as our external stakeholders, and we appreciate their flexibility and continued commitment additional help, including food donations to help hard hit community organisations.
as we have managed our way through these difficult times.
Salaries and fees in 2020
The Remuneration Committee responded quickly to react to the impact of the pandemic The Board took time to review the approach for the wider workforce, as detailed above,
on the business and applied its customary approach of acting with restraint with regards as context for decisions on Directors’ salaries and fees in 2020. Whilst the pay awards for
to Executive remuneration during these challenging times. Management salary increases our wider workforce continued to be implemented in 2020, the planned annual pay award of
were cancelled, the Board and senior executive team took a voluntary five-month pay cut, three per cent for Board members (both Executive and Non-Executive Directors) as well as
and planned increases to annual bonus and Performance Share Plan (‘PSP’) award levels the wider management population was cancelled for 2020 with salaries and fees remaining
were postponed. We are also very mindful that our shareholders were impacted with the at 2019 levels. The salary of the Finance Director, which had increased from £323,100 to
decision to suspend dividends in 2020. £351,550 as of 1 January 2020 as part of a two-stage increase (as previously consulted
upon) was reduced by three per cent to £341,003 on 1 April 2020, to align with the
Once the decision was taken to close all our shops in March, the vast majority of our wider cancellation of the annual increase for Directors. This reduction was backdated to
workforce was furloughed. A very small number of people were retained for the day-to-day 1 January 2020.
management of the business and strategic long-term projects, and for two of our supply
sites which were required for our wholesale operation. The Board was very focused on Furthermore, as of 1 April 2020, all Executive Directors, the Chairman, Non-Executive Directors
ensuring that all colleagues were supported in line with Greggs core culture and values and the Operating Board agreed to a voluntary 20 per cent reduction in salary/fee which
and that, in partnership with the Government Job Retention Scheme, the earnings of our remained in place until 31 August 2020 when the payment of normal salary/fee resumed.
lowest-paid colleagues were protected for as long as possible. Full contract hours were

paid from the date at which our shops and supply sites closed due to lockdown (week Bonus 2020
commencing 23 March) until 1 July, with furlough pay being topped up to 100 per cent. The Committee took the decision not to adjust the targets for the Company’s annual bonus
As of 1 July, all colleagues on furlough were paid 80 per cent of their contract hours or plan and the existing bonus metrics were retained. The planned increase in annual bonus
80 per cent of their average pay, whichever was higher. Across the whole period of furlough opportunity for the Finance Director (from 90 per cent to 100 per cent of base salary) was
Greggs plc
the government cap on earnings was not applied. delayed for a year until 2021. The Chief Executive’s bonus opportunity for 2020 remained
at 125 per cent of salary (which represented no increase over prior year).
80
As a direct result of the impact of the pandemic, the financial targets in the 2019 bonus 2020-2022 award

scheme were not met. The strategic targets were met in part, reflecting the tremendous The 2020-2022 PSP award was originally due to be granted in May 2020 under the terms set
efforts of management to continue to progress the strategic agenda alongside the day-to- out in last year’s Directors’ remuneration report. However, with the onset of the pandemic,
day challenges of Covid-19. This amounted to a potential payout of 15 per cent, but following the uncertainty regarding future strategy and performance made it very difficult to ensure
a full review and in light of the financial outcome, the Committee used its discretion to that management was appropriately incentivised to deliver a robust and effective business
adjust the formula-driven outturn and therefore no bonus will be paid for 2020. recovery plan. Therefore, after consultation with major shareholders, a decision was made to
postpone the 2020 PSP award until after the Board had concluded its three-year recovery plan.
Performance Share Plan
Outturn for the 2018-2020 PSP award The PSP was subsequently awarded in October 2020, with a robust set of performance
The three-year performance period for the PSP award made in March 2018 and due to measures and target ranges to complement the recovery strategy and link to the
vest in March 2021 ended on 2 January 2021. The Committee made no adjustments to the performance outlook for the business.
targets and despite strong performance in 2018 and a record-breaking year in 2019, the
impact of Covid-19 on the business in 2020 meant that for both ROCE and EPS the threshold The financial metrics of EPS and ROCE were retained with an allocation of 25 per cent of the
performance level was not achieved. PSP grant attributed to each of these metrics. The EPS and ROCE target ranges were set so as
to be appropriately challenging at the time the awards were granted in October 2020. The range
The Committee conducted an in-depth consultation exercise with our largest shareholders was set at an intentionally wide level recognising the significant variance in likely performance
on the potential exercise of Committee discretion to permit some of this award to vest, in outcomes over the performance period. The context at the time they were set was that
the light of the exceptional performance of the business up to the onset of the pandemic and Covid-19 rates were rising, the country was at the onset of a second wave of the pandemic
the very strong shareholder value created over the full three-year period (even taking into and entering a second national lockdown, and there was no defined view on the timings of a
account the impact of the Covid-19 pandemic on the final year of the performance period). vaccine rollout programme. This was a period of very significant uncertainty for the business.
However, after considering all the feedback received, the Committee concluded that it
would not use discretion to change the formula-driven outcome and so the award lapsed. The remaining 50 per cent was based equally on two strategic initiatives considered
essential to help reshape the business for the post-pandemic market.The first was based
I would like to thank shareholders for their support with this consultation and for their very on the implementation of a centralised digital app, with targets based on a significant
positive feedback with respect to the performance of the management team. increase in active user numbers. The second was based on growth of our new delivery
model, with targets set on a sliding scale focused on sales growth.
2019-2021 award
The 2019-2021 award outcome is also likely to be severely impacted by Covid-19. The At the time the award was granted in October 2020 the target ranges for all four metrics
Committee are not planning to make any adjustments to the targets for this plan and at this were considered by the Committee to be commercially sensitive and so we were not able
stage it is unlikely that threshold performance for EPS and ROCE will be achieved. to disclose them to shareholders at that time.

When considering the quantum of the award level, the Committee recognised some
short-term weakness in the share price. Accordingly, the Committee scaled back the
award levels for the Chief Executive and Finance Director reducing them from those set
Greggs plc
out in the last Directors’ remuneration report (150 per cent and 110 per cent of salary
respectively) to 115 per cent and 95 per cent of salary, respectively. Effectively, this delayed
to 2021 the increases to PSP awards that had been agreed in the remuneration policy, as
81 approved by shareholders at the 2020 AGM.
In March 2021, the Committee reviewed all the targets and following the significant Following full consideration of the current circumstances, the Remuneration Committee has

consultation with investors and overall feedback over the last 12 months, agreed to remain applied the proposed ‘second stage’ salary increase for the Finance Director, to £380,000
consistent in their approach of not adjusting the targets for these, or any other in-flight effective from 1 January 2021. This increase is in line with the approach as set out in the
PSP awards. Whilst the range is wide and we are now in a period of slight increased Directors’ remuneration report last year and applying this increase still leaves his salary
positivity, the Committee believes this is due in part to the considerable work and and total pay below mid-market pay levels when compared to companies of similar size and
commitment of the management team who have worked exceptionally hard not only to scope to Greggs.
navigate the period of the last six months, but to continue to ensure we drive business
growth and sustainability and to quickly reposition the busines for the future. Annual bonus
The maximum bonus opportunity for the Chief Executive will remain at 125 per cent of salary
On vesting of the award, in light of the extraordinary circumstances, the Committee will with the Finance Director increasing from 90 per cent to 100 per cent of salary. This increase
take a further, full review of business performance and quality of results to ensure this was originally due to be implemented in 2020, having been approved by shareholders as part
has been maintained consistently over the performance period and make the appropriate of the new policy, but was delayed in light of the impact of the pandemic.
decision with regards to the vesting of this award.
The Committee believes that the current measures – profit (50 per cent), sales (20 per cent)
Full details of the EPS and ROCE ranges are contained in this report.The targets relating to and strategic objectives (30 per cent) remain appropriate and no changes are proposed
strategic initiatives were also reviewed and the Committee determined that they continued to this weighting. The strategic objectives will comprise three separate elements with
to be pitched appropriately. These target ranges continue to remain commercially ten per cent based on business efficiency/cost savings, ten per cent based on sustainability
sensitive at the present time, as they relate to the details of our digital strategy and delivery targets and ten per cent based on food waste targets.
model. However, we will be in a position to disclose these following the end of the
performance period. Financial targets for these measures for the 2021 bonus will be set in line with the financial
plan for the business for the year and the rolling strategic plan and will continue to be
Approach for 2021 stretching. Due to the commercial sensitivity of the 2021 bonus targets they are not
In delivering the three-year recovery plan for the business, it is vital that there continues disclosed within this report, but will be disclosed retrospectively in next year’s report.
to be a sustained focus on the strategic direction, recovery and future growth of the
business. Whilst we continue to act with restraint in remuneration matters, it is important
that we set incentive plans that strike the right balance between achievability and stretch,
driving the right decisions for the business, supporting the wider workforce and
shareholders, whilst at the same time motivating and enabling the retention and
recruitment of senior talent.

Salaries and fees
With effect from 1 January 2021, the Committee agreed a salary increase of 1.7 per cent
for the Chief Executive, in line with the base increase for the workforce generally.
A consistent approach was taken by the Board in relation to both the Chair and
Greggs plc
Non-Executive Directors’ fees.
82
PSP The Committee is committed to continue consulting with key shareholders and we hope

For the 2021 PSP, as per the remuneration policy and having consulted with shareholders in we can rely on your ongoing support.
2019, the award level for the Chief Executive will increase to 150 per cent of salary with the
Finance Director award increasing to 125 per cent of salary. These increases were originally I hope that you will find this report transparent, clear and informative. The Committee
due to be implemented across 2020 and 2021, having been approved by shareholders as part has remained focused on ensuring that Executive remuneration is closely aligned to the
of the new policy, but were delayed in light of the impact of the pandemic. delivery of Greggs business strategy whilst taking account of stakeholder experience,
best practice and the impact of Covid-19 on the business.
The Committee has considered the performance conditions and has determined that, with
better visibility as to the Company’s financial performance, the performance conditions Finally, I am grateful for the support I have received from my predecessor, Sandra Turner,
should revert to just EPS and ROCE, with an equal weighting given to each. We have set the Committee and the rest of the Board as we have dealt with the significant
appropriately stretching performance targets for each measure reflecting the strategic remuneration-related challenges that faced the business this year.
plan and business outlook over the performance period. Full details of the targets are set
out later in this report, but both represent a significant increase on the 2020 PSP targets. I look forward to receiving your support at this year’s AGM with regards to the annual report
on remuneration. If you would like to contact me directly to discuss any aspect of this
Shareholder engagement report then please email me at investorrelations@greggs.co.uk.
Throughout 2020 we have engaged with shareholders and proxy agencies to receive
their feedback on a number of policy matters including the new remuneration policy, Yours faithfully
the package for our Finance Director, the impact of Covid-19 and the response of the
Committee to it, as well as exploring the vesting of the 2018 PSP award. These discussions
and views have supported the Committee in shaping their thinking on remuneration policy Dr. Helena Ganczakowski
and practice. The Committee would like to thank our shareholders and proxy agencies for Chair of the Remuneration Committee
their time and support through 2020. We welcome all feedback from our shareholders as 16 March 2021
their views help us inform our thinking on remuneration matters and in particular when
evaluating and setting the remuneration strategy.

Greggs plc
83
Remuneration policy report Element Purpose and strategy Operation Maximum opportunity

This section of our report is a summary of the remuneration policy for all Executive and Benefits To support a Benefits include provision of a company No maximum limit
Non-Executive Directors at Greggs. It explains the purpose and strategy of each element competitive car (or cash in lieu), private medical health is prescribed,
remuneration care, life assurance and permanent particularly as the
of the package and demonstrates how the policy will incentivise Executive Directors to
package in the health insurance. cost of providing
achieve sustainable long-term growth and value to best serve the interests of the marketplace. insured benefits
Company, its shareholders, its colleagues and other stakeholders. fluctuates over time.
However, the
The current Directors’ remuneration policy was approved by shareholders at our AGM on Committee monitors
on an annual basis
13 May 2020 and became effective for three years from that date. There are no proposed
the overall cost of
changes to this policy in 2021. the benefit
provision.
The policy for the remuneration of the Executive and Non-Executive Directors is set out Pension To support a Executive Directors can elect to either: Up to 22.5% of base
in the tables below: competitive salary contribution
–– participate in the Company defined
remuneration for the current Chief
contribution pension scheme (up to
Executive Directors package in the
a cap). Above the cap Executive
Executive and up to
marketplace and 15% of base salary
Element Purpose and strategy Operation Maximum opportunity
Directors receive a salary supplement;
ensure that pension for other Executive
or
Base salary To attract and Reviewed and set annually in January. No maximum limit contributions are Directors, but
aligned to the rate –– take cash in lieu of this contribution reducing to the
retain high-calibre is prescribed. Key
Benchmarked periodically by the paid as a supplement to their salary
individuals in order reference points applying to the percentage pension
Committee against the remuneration on a monthly basis.
to promote the for salary increases majority of the contribution of the
levels for executives in similar roles in –– The Executive Directors are able to
long-term success are market and workforce over majority of the
companies of a comparable size. make this choice on an annual basis.
of the business. economic conditions time. workforce over time.
Individual performance and contribution
and, in line with our –– All current Executive Directors will All new Executive
are recognised in setting salary levels.
values, the approach have their pension contributions Directors will have
Salaries are paid monthly in cash. to colleague pay reduced over five years, commencing their pension
throughout the in the financial year 2021. The contribution aligned
organisation. reduction will be in equal proportions to the rate applying
until their contribution rate matches to the majority of the
that of the majority of the workforce. workforce.

Greggs plc
84
Element Purpose and strategy Operation Maximum opportunity Element Purpose and strategy Operation Maximum opportunity

Annual bonus To incentivise The bonus will be based on a mix of Capped at 150% of Annual bonus Any bonus paid in excess of 50% of the
(including achievement of business KPIs, with operating profit base salary for the (including maximum will be payable in shares, which
profit share) annual targets being the largest component of the Chief Executive and profit share) (after any sales to pay tax and other
and objectives mix of metrics and this will not be less 125% of base salary continued statutory deductions) must be held in the
consistent with the than 50% of the overall mix. for other Executive Employee Benefit Trust for two years
short to medium- Directors. after receipt.
Targets for each metric are set in advance
term strategic
and in line with business planning On target The dividends payable on deferred bonus
needs of the
objectives set by the Committee. performance shares are paid to the individual as they
business, so as to
delivers no more fall due.
encourage Each Executive Director is entitled to
than 50% of the
sustainable growth participate in the Company’s profit- Recovery and withholding provisions
maximum.
in the Company’s sharing scheme available to all allow the Company to recoup annual
operating profits. colleagues. The value of this is then No more than bonus payments within three years in the
deducted from their annual bonus 25% of the bonus event of misstatement of performance,
and is subject to the individual cap. opportunity is error, misconduct, reputational damage
payable under or corporate failure where this has led to
The Committee will use appropriate
each element an overpayment in the view of the
underpins for any non-profit based
for threshold Committee. There is a flexible mechanism
element of the annual bonus such that
performance. which allows the Company to withhold
payment under these elements may be
outstanding deferred or future
scaled back (potentially to zero), at the
remuneration or recover the
discretion of the Committee, if the
overpayment direct from the individual
operating profit performance for the year
concerned.
is judged to be running significantly below
that required for the achievement of the Performance To incentivise Awards are granted under the PSP 150% of base salary
long-term strategy. Share Plan long-term value annually at the discretion of the for Chief Executive
The Committee will be able to adjust (‘PSP’) creation, retention Committee. and 125% of base
the formula-driven outcome from any of our talent and salary for other
Performance conditions will be based on
bonus plan if, in the judgement of the ensure alignment of Executive Directors
appropriate financial measures with
Committee, this does not reflect Executive Directors’ (150% of base salary
targets being set for each metric which
broader Company performance or the and shareholders’ in exceptional
reflect the strategic plan and business
shareholder experience, or the payment interests. circumstances).
outlook over the respective performance
level is otherwise inappropriate. period. Performance will be measured Threshold vesting
over a three-year period with an at 25% of the
additional mandatory holding period maximum.

of two years for the vested shares
(net of tax and other deductions).
Greggs plc
85
Element Purpose and strategy Operation Maximum opportunity Element Purpose and strategy Operation Maximum opportunity

Performance A PSP award holder will be entitled to a Share To further align Executive Directors are required to build n/a
Share Plan dividend equivalent payment in respect retention the interests of up a shareholding of 200% of base salary.
(‘PSP’) of any vested shares. guidelines Executive Directors Where an Executive Director has not
continued to those of reached the required level, 50% of the
The Committee will be able to adjust the
shareholders. shares vesting from incentive schemes
formula-driven outcome from the PSP if,
must be held until this requirement has
in the judgement of the Committee, this
been met.
does not reflect broader company
performance or the shareholder This is achieved through vested awards
experience, or the vesting level is granted via the PSP and deferred
otherwise inappropriate. bonus shares.
Recovery and withholding provisions For any new Executive Directors
allow the Company to recoup vested PSP appointed following approval of this
awards within three years in the event policy there will be a two-year post-
of misstatement of performance, error, employment holding requirement at the
misconduct, reputational damage or lower of the level of the shareholding
corporate failure where this has led guideline immediately prior to departure
to an overpayment in the view of the or the actual shareholding at departure.
Committee. There is a flexible mechanism
which allows the Company to withhold
outstanding deferred or future
remuneration, or recover the
overpayment directly from the
individual concerned.
Saving- To encourage No performance conditions have been Executive Directors
Related Share colleagues at all attached to options granted pursuant to may enter into a
Option Scheme levels within the the Company’s SAYE and SIP Schemes, contract to save up
(SAYE and SIP) Company to which are available for all colleagues. to an agreed saving
understand better limit in line with all
and so participate in colleagues in the
the growth in value business and HMRC
of the Company. guidelines.

Greggs plc
86
Non-Executive Directors Choice of performance measures and policy discretion

The remuneration policy provides the Remuneration Committee with the flexibility to
Element Purpose and strategy Operation Maximum opportunity
choose appropriate performance conditions for the annual bonus scheme and for PSP
Non-Executive To attract and The Chairman is paid an all- There is no
awards, subject to the constraints set out in the table above. The choice of metrics will
Chairman and retain high quality encompassing fee. prescribed
Directors’ fees and experienced maximum. depend upon the strategic focus for the Group at the time decisions around the awards
Non-Executive Directors are paid a basic
Non-Executive are taken. The specific measures and the targets used to assess performance will be
fee and the Chairs of the Main Board
Chairman and
Committees and the Senior Independent disclosed in the Directors’ remuneration report on an annual basis.
Directors.
Director are paid an additional fee to
reflect their additional responsibilities. The Committee will operate incentive plans in accordance with their respective rules,
These fees are usually reviewed and set the Listing Rules and HMRC limits where relevant. The Committee, consistent with
annually. Additional fees may be paid market practice, retains discretion over a number of areas relating to the operation and
where there is a material increase in the administration of certain plan rules. These include (but are not limited to) the following:
time commitments and responsibilities
required of Non-Executive Directors.
–– who participates;
Non-Executive Directors are not eligible –– the timing of the grant of award and/or payment;
for pension scheme membership, bonus
–– the size of an award (up to plan/policy limits) and/or a payment;
or incentive arrangements.
–– discretion relating to the measurement of performance in the event of a change of
They are entitled to reimbursement of
control or reconstruction;
reasonable business expenses and tax
thereon. They may also receive limited –– determination of a good leaver (in addition to any specified categories) for incentive plan
travel or accommodation-related purposes and the treatment of leavers; and
benefits in connection with their role –– adjustments required in certain circumstances (e.g. rights issues, corporate restructuring
as a Director. and special dividends); and the ability to adjust, but not waive, existing performance
conditions for exceptional events so that they can still fulfil their original purpose.
Legacy arrangements
For the avoidance of doubt, in approving this policy report, authority is given to the Company
to honour any commitments entered into with current or former Directors (such as the
payment of a pension or the unwinding of legacy share schemes) that have been disclosed
to shareholders in previous remuneration reports. Details of any of these payments to
former Directors will be set out in the annual report on remuneration as they arise.

Policy on recruitment remuneration
The Committee will set a new Executive Director’s remuneration package in line with the
Company’s approved policy at the time of appointment. In arriving at a total package and
Greggs plc
in considering the quantum for each element of that package, the Committee will take into
account the skills and experience of the candidate, the market rate for a candidate of that
experience as well as the importance of securing the best available candidate.
87
Annual bonus and PSP awards will not exceed the policy maxima (not including any Service contracts and policy on cessation

arrangements to replace forfeited deferred pay). Participation in the annual bonus plan will Executive Directors’ service contracts contain the following remuneration-related aspects:
normally be pro-rated for the year of joining. The Committee may make one-off additional
Provision Detailed terms
cash and/or share-based awards as it deems appropriate, and if the circumstances so
Remuneration –– Salary, pension and benefits;
demand, to take account of deferred pay forfeited by an Executive Director on leaving a
–– company car or cash allowance;
previous employer. Awards to replace deferred pay forfeited would, where possible, reflect
–– private medical health care for the Director;
the nature of awards forfeited in terms of delivery mechanism (cash or shares), time
–– permanent health insurance;
horizons, attributed expected value and performance conditions. Other payments may
–– participation in annual bonus and profit share (subject to scheme rules);
be made in relation to relocation expenses and other incidental expenses as appropriate.
–– participation in long-term incentive schemes or similar arrangements
Any buyout awards would be made under existing arrangements where possible or as
(subject to scheme rules); and
permitted under the Listing Rules.
–– life assurance.
Notice period –– the Chief Executive’s contract is terminable on 12 months’ notice served
In the case of an internal appointment, any variable pay element awarded in respect of by either the Company or the Director;
the prior role would be allowed to pay out according to its terms and any other ongoing
–– the Finance Director’s service contract is terminable on 12 months’ notice
remuneration obligations existing prior to appointment would continue. served by the Company or by six months’ notice served by the Director; and
–– any future Executive Directors’ service contracts will be terminable on up
In line with our Remuneration Policy, all new Executive Directors will have their pension to 12 months’ notice served by either party.
contribution aligned to the rate applying to the majority of the workforce. Termination payment –– Payment in lieu of notice equal to any unexpired notice of termination
given by either party; and
For the appointment of a new Chairman or Non-Executive Director, the fee arrangement –– payment in lieu shall not include:
would be set in accordance with the approved remuneration policy at that time. –– any bonus payment;
–– any payment in respect of benefits which the Director would have been
entitled to receive; and
–– any payment in respect of any holiday entitlement that would have
accrued during the period for which the payment in lieu is made.
–– Details of the circumstances in which the Committee has the ability to
exercise discretion with regards to termination payments are set out below.
Under their service contracts, if notice is served the Executive Directors are entitled to
salary, pension contributions and benefits for their notice period save where a payment in
lieu is to be made. The Company would seek to ensure that any payment is mitigated by use

of phased payments and offset against earnings elsewhere in the event that an Executive
Director finds alternative employment during his notice period. There are no contractual
provisions in force other than those set out above that impact any termination payment.
Greggs plc
88
Areas where the Committee can exercise discretion with regards to termination payments Expected value of the proposed annual remuneration package for Executive

are set out below: Directors
–– any right to annual bonus in the year of departure would lapse unless the individual is The following charts indicate the level of remuneration payable to Executive Directors
leaving in good leaver circumstances, in which case a bonus may be payable pro-rated in 2021 based on policy at ‘minimum’ remuneration, remuneration in line with ‘on target’
for that part of the year worked; company performance, and the maximum remuneration available.
–– deferred bonus shares must normally be retained in trust until the end of their two-year
holding period, but may be released early in exceptional circumstances, such as ill-health; Chief Executive – Roger Whiteside
–– any unvested awards held under the PSP will lapse at cessation, unless the individual is
leaving in good leaver circumstances (defined under the plan as death, injury, ill-health, £3,000,000 PSP
disability, redundancy, retirement, their office or employment being with either a £2,706,540
Bonus
company which ceases to be a Group member or relating to a business or part of a £2,500,000
48%
£2,275,133
Fixed Renumeration
business which is transferred to a person who is not a Group member, a change of control
37%
£2,000,000
or any other reason the Committee so decides). In these circumstances, unvested
awards will normally vest at the normal vesting date (other than on death or where the £1,484,221
£1,500,000
Committee decides they should vest at cessation) subject to performance conditions
29%
32%
26%
being met and scaling back in respect of actual service as a proportion of the total £1,000,000
47% 24%
vesting period (unless the Committee decides that scaling back is inappropriate). Vested £693,308
awards will normally be subject to the mandatory two-year holding period although the £500,000
100%
31%
26%
Committee will have discretion to waive this in exceptional circumstances; and
0
–– the Committee may agree to payment of disbursements such as legal costs and
Minimum On target Stretch 50%
outplacement services if appropriate and depending on the circumstances of cessation. share price
appreciation
The table below sets out the details of the Executive Directors’ service contracts:
50% share price
Minimum On target Stretch appreciation
Director Date of contract
Fixed remuneration:
Roger Whiteside 4 February 2013
–– Salary £575,209 £575,209 £575,209 £575,209
Richard Hutton 7 April 2006
–– Pension £108,139 £108,139 £108,139 £108,139
–– Benefits £9,960 £9,960 £9,960 £9,960
The service contracts are available for inspection during normal business hours at the Bonus – £359,506 £719,011 £719,011

Company’s registered office, and are available for inspection at the AGM. Performance Share Plan – £431,407 £862,814 £1,294,221
Total £693,308 £1,484,221 £2,275,133 £2,706,540
Greggs plc
89
Finance Director – Richard Hutton Terms of appointment of Non-Executive Directors

Non-Executive Directors are appointed subject to the Company’s articles of association,
£1,500,000 £1,528,541 PSP retiring and seeking election at the first AGM after appointment.
Bonus
47%
Fixed Renumeration
£1,200,000 £1,291,041 Thereafter, every Director will be subject to annual re-election by shareholders. The
Nominations Committee advises the Board as to whether Directors should be nominated
37%
£900,000
for re-election. Non-Executive Directors are not entitled to compensation for early
£863,541
termination of their appointments prior to the date on which they would next be due
to offer themselves for election or re-election, or if not re-appointed at such time.
27%
29%
25%
£600,000
51% 22%
£436,041
The following table shows the effective date of appointment for each Non-Executive
£300,000
100%
34%
28% Director:
0
Non-Executive Director Original date of appointment
Minimum On target Stretch 50%
share price Ian Durant 5 October 2011
appreciation
50% share price Helena Ganczakowski 2 January 2014

Minimum On target Stretch appreciation
Peter McPhillips 10 March 2014
Fixed remuneration:
Sandra Turner 1 May 2014
–– Salary £380,000 £380,000 £380,000 £380,000
Kate Ferry 1 June 2019
–– Pension £45,600 £45,600 £45,600 £45,600
–– Benefits £10,441 £10,441 £10,441 £10,441
Bonus – £190,000 £380,000 £380,000 Current Non-Executive Directors are appointed on an understanding that the appointment
Performance Share Plan – £237,500 £475,000 £712,500 will last for at least six years, but without any commitment by either party.
Total £436,041 £863,541 £1,291,041 £1,528,541
All new Non-Executive Directors, from June 2019, are appointed for an initial term of
Assumptions used in the charts:
Base salary levels as at 1 January 2021. three years unless terminated earlier by either party giving to the other party three months’
The value of taxable benefits is based on the cost of supplying those benefits (as disclosed) for the 53 weeks ended written notice.
2 January 2021
Bonus
Minimum remuneration – assumes no award is earned under the annual bonus plan.

On target remuneration – the annual bonus plan assumes the target level is reached for each of the elements, resulting in
a pay-out of 50% of the maximum:
Maximum remuneration – assumes satisfaction of all performance conditions for all elements under the annual bonus plan
and therefore full pay out.
Greggs plc
PSP element is calculated as award percentage of base salary multiplied by the relevant vesting percentage.
Share price movement and dividend accrual have been excluded, other than in the 50% share price appreciation model.
Minimum remuneration – assumes no vesting is achieved under the PSP.
On target remuneration – assumes 50% vesting is achieved.
90
Annual remuneration report We share ten per cent of our profits annually with our colleagues across the business, and

A. How our remuneration links to strategy and reward across the wider workforce everyone is eligible to participate in this profit-sharing scheme after six months’ service.
Link to Strategy A higher proportion of the Executive Directors’ remuneration package is delivered through
Growth – remuneration at Greggs is intended to incentivise sustainable profitable growth. performance-related incentive schemes, much of which are in share-based form, which
This is reflected in key metrics in the plans including operating profit, EPS, ROCE and provides a good link to long-term company performance and shareholder experience.
cost savings Long-term incentive schemes and bonus participation extends below Board level, with a
separate share option scheme is in place for Senior Management colleagues and a bonus
Strategic pillars – delivery against the four strategic pillars is incentivised as appropriate scheme for graded management. Both the LTIP and management bonus schemes are
by strategic metrics in the annual bonus scheme – for example specific project delivery aligned to those of the Executive Directors’ and are subject to the same performance
targets and measures.
The Greggs Pledge – our commitment to deliver these goals is supported with the inclusion
of sustainability and food waste targets All colleagues with one-years’ service or more may participate in the Share save scheme
(where colleagues can save to purchase shares at a discount rate at the end of a three-year
Compliance with the UK Corporate Governance Code period) and in the Share Incentive Plan (‘SIP’) (where colleagues can purchase shares from
Our report is fully compliant with the UK Corporate Governance Code and we believe that our pre-tax salary subject to HMRC limits). These schemes are generally offered annually.
approach to Executive remuneration fully takes into account the required focus on clarity,
simplicity, risk, predictability, proportionality and alignment to culture. For example, we B. Remuneration Committee activity for the 53 weeks ended 2 January 2021
operate simple remuneration schemes consistently year-to-year, which are explained Meetings during the year
clearly and transparently in this Directors’ remuneration report. The typical award levels and The Remuneration Committee met four times during the year. Details of the Committee
potential pay-outs are disclosed in the remuneration policy and it has been demonstrated in members’ attendance are given on page 62.
this statement how outcomes have been aligned with performance and strategy.
All members are considered to be independent for the purpose of the UK Corporate
Reward across the wider workforce Governance Code. The Company Secretary acts as Secretary to the Committee.
The remuneration policy for the Executive Directors is designed having regard to the policy
for colleagues across the Group as a whole and wider workforce remuneration and related Role and responsibilities
policies. While colleagues are not formally consulted on the terms of Executive Director Responsibility is delegated to the Remuneration Committee to ensure that an effective
remuneration, the Remuneration Committee engaged with a representative group of remuneration policy is in place for the Chief Executive, other Executive Directors, the
colleagues in 2020 to explain how remuneration for Directors aligns with wider company Chairman and senior management whilst reviewing and taking into account wider
pay policy and plans further engagement sessions in 2021. workforce remuneration and the Company values and culture. It is the Committee’s role to
establish a remuneration policy that promotes both long-term shareholdings by Executive

There are differences in salary levels and in the levels of potential reward depending upon Directors and ensures alignment of policies and practices to support business strategy,
seniority and responsibility, although a key reference point for Executive salary increases promote long-term sustainable success of the business and shareholder expectations.
is the average base pay increase across the general workforce.
Greggs plc
91
Summary of Committee activity during 2020 The Regulations also require our auditor to report to shareholders on the audited

In an unprecedented year the Committee has focused significantly on the impact that information within this remuneration report and to state whether, in their opinion, the
Covid-19 has had on the business and the effective application of the remuneration policy relevant sections have been prepared in accordance with the Act and the Regulations.
throughout the year. Details with regards to some of the activities the Committee have The auditor’s opinion is set out on pages 104 to 111 and we have indicated appropriately
undertaken have been outlined in the Chair’s letter as well as being summarised below. the audited sections of this remuneration report.
–– Concluded consultation with shareholders on the new three-year remuneration policy; Remuneration advice
–– Agreed the new pension arrangements for incumbent and new Directors;
–– Approved the new remuneration policy for recommendation to shareholders at the The Chief Executive along with Jonathan Jowett (Company Secretary and General
AGM in May; Counsel), Roisin Currie (Retail & People Director) and Emma Walton (Head of People)
–– Reviewed all colleague remuneration in particular acknowledging the one off are normally invited to attend the Committee meetings in order to provide advice and
‘Thank You’ payment made to all colleagues in January 2020; support to the Committee. The Finance Director attends where required. During the year
–– Discussed and reviewed Directors’ salaries, in particular the Finance Director’s salary Korn Ferry supported the Committee.
and the increase previously discussed with shareholders;
–– Reviewed the impact of the Covid-19 pandemic on colleagues and engaged with Korn Ferry is a signatory to the Remuneration Consultants’ Code of Conduct in relation
shareholders on action taken in relation to Executive Directors as outlined in this report; to executive remuneration consulting in the UK.
–– Discussed the 2020 bonus outturn;
–– Reviewed the 2021 bonus metrics for the year ahead and agreed bonus potential for The Committee reviewed the operating processes in place at Korn Ferry and is satisfied that
Finance Director in line with remuneration policy; the advice it receives is objective and independent. Fees paid to Korn Ferry during the year
–– Discussed and reviewed PSP vesting conditions for the 2018 PSP grant and engaged in were £27,870. Korn Ferry did not provide any other services to the Company during 2020.
a full and comprehensive consultation exercise with shareholders to explore proposals;
–– Discussed and reviewed the targets and approval of grants for PSP for the year ahead Shareholder Dialogue
and engaged with shareholders on timing of award and metrics; The Committee actively engages with shareholder views and these are taken into account
–– Approved grants under the share option scheme (to senior managers below Operating in shaping both remuneration policy and practice. Extensive shareholder consultation was
Board level); conducted in 2020.
–– Approved the Company SAYE scheme;
–– Reviewed Executive Directors’ and senior management’s shareholdings in the Company, AGM Voting Outcomes
in the context of shareholding guidelines; and The voting outcome from the 2020 AGM reflected both strong individual and institutional
–– Held a listening group with colleagues to support understanding of the work of the shareholder support and the results are outlined below.
Remuneration Committee.

Approve the remuneration report
Total number % of
Structure and content of the remuneration report of votes votes cast
The remuneration report has been prepared in accordance with the provisions of the For 71,440,001 98.57%
Companies Act 2006 (the ’Act’) and The Large and Medium-sized Companies and Groups Against 1,036,642 1.43%
Greggs plc
(Accounts and Reports) (Amendment) Regulations 2013 (the ‘Regulations’). It also meets Total votes cast (excluding votes withheld) 72,476,643 100.00%
the requirements of the UK Listing Authority’s Listing Rules. Votes withheld 2,072,997
Total votes cast (including votes withheld) 74,549,640
92
Shareholders were asked to approve the remuneration policy at the 2020 AGM and the Pension contribution 2021

results are outlined below: As per our remuneration policy, contributions for the Chief Executive and Finance Director
Approve the remuneration report
will reduce following a glide path over a five-year period commencing 1 January 2021,
Total number % of
of votes votes cast reducing by 3.7 per cent and two per cent of salary p.a. respectively until contributions
For 66,782,219 95.71% are aligned to rate applying to majority of workforce.
Against 2,990,047 4.29%
Total votes cast (excluding votes withheld) 69,772,266 100.00% The pension contribution rates for 2021 (both of which are cash in lieu) are:
Votes withheld 4,777,374
Roger Whiteside 18.8%
Total votes cast (including votes withheld) 74,549,640
Richard Hutton 12.0%
C. How our remuneration policy will be implemented in 2021 – Executive Directors

The section below summarises the implementation of our remuneration policy for 2021. Annual bonus 2021
The annual bonus opportunity for 2021 is outlined below:
Base salary 2021
Chief Executive Maximum opportunity of 125% of base salary. Bonus in excess of
The annual base salaries for the Executive Directors were reviewed with effect from 50% of maximum will be payable in shares deferred for two years.
1 January 2021; increases and current salaries are outlined below: Finance Director Maximum opportunity of 100% of base salary. Bonus in excess of
Salary as at Salary as at 50% of maximum will be payable in shares deferred for two years.
Director 1 January 2020 1 January 2021 % increase
Roger Whiteside (Chief Executive) £565,594 £575,209 1.7%

The bonus metrics are:
Richard Hutton (Finance Director) £341,003 £380,000 11.4%
Measure Profit Sales Strategic objectives
With effect from 1 January 2021 the Committee agreed a salary increase of 1.7 per cent Weighting 50% of total 20% of total 30% of total
for the Chief Executive, in line with the base increase for the workforce generally. Detail and link to Reflects the profit of Based on company- Outlined below.
strategy the Group at an managed shop
A consistent approach was taken by the Board in relation to both the Chair and
underlying level before like-for-like sales
Non-Executive Directors’ fees. tax. This will be based excluding any additional
on meeting and shops opened during
Following full consideration of the current circumstances, the Remuneration Committee exceeding budget for the bonus year.
has applied the proposed ‘second stage’ salary increase for the Finance Director to the year.
£380,000, effective from 1 January 2021. This increase is in line with the approach as set

out in the Directors’ remuneration report last year and applying this increase still leaves
his salary and total pay below mid-market pay levels when compared to companies of
similar size and scope to Greggs.
Greggs plc
93
The strategic objectives for each bonus cycle are based on measures which will provide The Committee will review the prevailing share price at the time of grant and if it

a strong link to strategy and future value creation. For the 2021 bonus there will be three determines that there is short-term weakness in the share price, it may scale back the
strategic objectives each relating to ten per cent of the bonus opportunity. They are: award levels from the percentages above.
–– ten per cent based on business efficiency/cost savings; Performance conditions will be based on an equal split of two different financial measures,
–– ten per cent based on sustainability targets; and EPS and ROCE. These measures provide a rounded assessment of our overall profitability
–– ten per cent based on food waste targets. against stretching targets set in line with the strategic plan and business outlook over the
performance period. For these awards both the EPS and ROCE range has been set to
The annual bonus is based on performance against a range of financial and strategic ensure that the targets remain appropriate in light of our business strategy over the
performance measures. This range of metrics measures achievement of the Company’s coming three-year period.
key operational objectives. The Committee reviews the key performance indicators (KPIs)
each year and varies them as appropriate to reflect the priorities for the business in the For the 2021 awards the target ranges will be as follows:
year ahead. Where appropriate a sliding scale of targets is set for each KPI to encourage
continuous improvement, or sustained high performance with a maximum of ten per cent –– The EPS performance condition will require EPS in 2023 to be between 77.2p and 105.3p;
bonus paid out for threshold performance for the profit and sales elements of the bonus and
–– The ROCE condition will require full year 2023 ROCE to be between 14.8 per cent to
Targets are normally set at the start of the year by the Committee using the outturn and 19.5 per cent.
performance in the previous year, as well as the business plan, to determine appropriately
stretching sliding scales. Due to the significant impact of Covid-19 on business In both cases 25 per cent of an award will vest on achieving threshold performance and
performance the Committee has postponed setting specific targets until later in the year thereafter straight-line sliding scales will apply until stretch performance is achieved.
and no later than the half year 2021. Bonus targets for the forthcoming year are considered
to be commercially sensitive and so will not be disclosed at that time. Retrospective The EPS and ROCE targets represent a significant increase compared to the targets for
disclosure of the targets and performance against them will be made in next year’s annual the 2020 PSP awards.
report on remuneration.
A holding period is attached to vested PSP awards, requiring the vested shares to be held
The Committee will review performance and any payment under the non-profit based (net of tax and other deductions) for a further two years.
element of the bonus may be scaled back (potentially to zero) at the discretion of the
Committee, in the event that the profit performance for the year is judged to be running How our remuneration policy will be implemented in 2021 – Non-Executive Directors
significantly below that required for the achievement of the long-term strategy. In order to ensure that no Director is involved in deciding his/her own remuneration, the
fees payable to Non-Executive Directors are set, after consultation with the Chairman,

PSP award 2021 by a Committee of the Board consisting only of the Executive Directors. The fees payable
PSP awards will be granted as follows: to the Chairman are set by the Remuneration Committee.
Chief Executive 150% of base salary The Non-Executive Directors are paid an annual base fee and additional responsibility fees
Greggs plc
Finance Director 125% of base salary for the role of Senior Independent Director (SID) or for chairing a Board Committee.
94 * EPS and ROCE are measured excluding exceptional items.

These fees are usually reviewed and set annually. The fees were increased by 1.7 per cent D. How our remuneration policy was implemented in 2020 (audited)

on 1 January 2021 in line with the base salary increase for the whole workforce. Total Executive Director remuneration payable for 2020
The following table presents the remuneration payable for 2020 (showing the equivalent
Details of the fees being paid to Non-Executive Directors in 2021 are set out below: figures for 2019) for the Executive Directors.
Name Position Base fee Additional fee Fee
(including salary in
Annual incentives
Taxable benefits4
Ian Durant Chair £198,315
(including profit
remuneration
remuneration
remuneration
Total variable
Performance
Share Plan 1,2
contribution
Kate Ferry Chair of the Audit Committee £50,850 £10,170 £61,020
Total fixed
Pension
Helena Chair of the Remuneration
Salary
share)
Total
lieu)
Ganczakowski Committee £50,850 £10,170 £61,020
£
Peter McPhillips Non-Executive Director £50,850 £50,850 Roger Whiteside
Sandra Turner Non-Executive Director & SID £50,850 £7,628 £58,478 2020 518,4613 116,654 9,960 645,075 - - - 645,075
2019 565,594 127,259 12,469 705,322 690,732 975,297 1,666,029 2,371,351
These fees may be subject to change during the year based on any change in responsibility or time commitment.
Richard Hutton
2020 312,586 3 42,549 10,441 365,576 - – – 365,576
2019 323,100 44,021 12,090 379,211 284,102 460,237 744,339 1,123,550
Notes:
1 The value of the PSP award for 2020, due to vest on 19 March 2021, is based on the forecast level of vesting (0%)
2 For the 2019 PSP award the value last year was based on the average share price over the three-months prior to the year
end. The value has now been updated for the actual price on vesting on 19 May 2020, together with the updated total
remuneration figure
3 For the period of 1 April 2020 to 31 August 2020 the salaries of the Executive Directors were voluntarily reduced by 20%
4 Taxable benefits relate to cash-in-lieu of a company car and private medical health care
Fees for Non-Executive Directors

The fees for Non-Executive Directors were as follows:
Per annum as of Per annum as of
13 May 2020 1 January 2020 Actual paid 2020 Actual paid 2019
Ian Durant £195,000 £195,000 £178,750 £183,925

Helena Ganczakowski* £60,000 £45,979 £51,575 £47,990
Peter McPhillips £50,000 £45,979 £45,833 £47,990

Sandra Turner** £57,500 £60,000 £53,565 £56,408
Kate Ferry*** £60,000 £60,000 £55,000 £34,401
* Helena Ganczakowski was appointed Remuneration Committee Chair as of 13 May 2020.

Greggs plc
** Sandra Turner stood down as Chair of Remuneration Committee as of 13 May 2020.

** Kate Ferry joined the Board on 1 June 2019
For the period 1 April 2020 to 31 August 2020 the fees of the Chair and Non-Executive
95 Directors were voluntarily reduced by 20 per cent.
Annual bonus 2020 Process and system change delivery (10%)

As a direct result of the impact of the pandemic, the financial targets in the 2019 bonus Metric Target 5% 7.5% Maximum 10%
scheme were not met. The strategic targets were met in part, reflecting the tremendous SAP roll out to bakery Implementation and Implementation and Implementation and
efforts of management to continue to progress the strategic agenda alongside the sites – Implementation successful cutover successful cutover successful cutover
day-to-day challenges of Covid-19. Following a full review and in light of the financial of critical IT systems of first ‘combined’ of one further site of one further site
outcome the Committee decided to use its discretion to determine that the annual bonus with successful (manufacturing &
pay-out for 2020 would be zero, overriding the formula driven pay-outs that would otherwise operation and logistics) site
acceptance into service.
have arisen under the 30 per cent strategic element.
The table below outlines the bonus performance conditions in respect of 2020 scheme. Delivery (5%)
Metric Threshold 1% Maximum 5%
Measure Strategic objective Weighting Entry Target Stretch Actual %
Profit To deliver target 50% £114.7m £119.7m £123.7m (£13.7m) 0% Launch full delivery Launch delivery into sliding scale to… Launch delivery into
(£) profit before tax operating model and 50 shops 200 shops
(excluding roll out across estate
exceptional items
and property Sustainability (5%)
profits)
Sales To deliver target 20% 3.3% 4.4% 5.4% (36.2)% 0% Metric Threshold 1% Maximum 5%
(%) increase in Distribute an increased 10% increase in sliding scale to… 50% increase in amount
company– % of unsold food ahead amount of unsold of unsold food re-
managed of the 2019 end of year food re-distributed distributed year-on-year
like-for-like sales actual (19.5%) year-on-year
Strategic Cost savings 10% £6.0m £10.0m – Not possible 0%
(£) to measure Bonus achieved for 2020
reliably in
As % of maximum
current
Roger Whiteside 0%
year
Richard Hutton 0%
Strategic Process and 10% Achieved 10%
system change
delivery*
Details of the shares awarded in 2020 for the 2019 bonus year are outlined below.
Strategic Delivery* 5% Achieved 5%
These were awarded on 25 March 2020 and will be released on 25 March 2022:

Strategic Sustainability* 5% Not 0%
Director Number of shares awarded
achieved
Roger Whiteside 11,251
Total weighting based on 100% 15%
balanced scorecard Richard Hutton 4,627
Greggs plc
* Further details on the strategic targets are set out below:
96
Performance Share Plan award for performance over 2018 – 2020 For the 2020 grant there will be four independent performance targets applying

The PSP award granted in 2018 measured EPS performance by reference to the to an award.
three financial years to 2 January 2021 and average annual ROCE over the three-year
performance period 2018 to 2020. The performance targets that were set, together Each performance target will account for 25 per cent of the award:
with the performance delivered, are set out in the table below.
Metric Condition Threshold target Stretch target Actual* % vesting
–– 25 per cent is subject to a performance target based on the Company’s earnings per
Earnings per Normalised 5% p.a. 11% p.a. (37.3%) 0%
share (pence per share) in 2022 being between 18.3p and 69.3p;
share (50%) average annual (12.5% (100%
–– 25 per cent is subject to a performance target based on the Company’s return on capital
EPS growth of vesting) vesting)
employed in 2022 to be in the range 3.4 per cent to 12.5 per cent;
5 -11% per annum –– 25 per cent will be based on the implementation of a centralised Digital App with metrics
over three on a sliding scale focused on increasing active user numbers; and
financial years.
–– 25 per cent will be based on the implementation of a delivery model that increases sales
ROCE (50%) Average annual 25% 29% 19.5% 0%
growth for the business linked to the Strategic Business Plan.
ROCE over the (12.5% (100%
three-year vesting) vesting)
performance These final two target ranges remain commercially sensitive at the present time, as they
period. relate to details of our digital strategy and delivery. However, we will be in a position to
Total vesting 0% disclose these following the end of the performance period.
Performance Share Plan awards granted in 2020 For each metric, 25 per cent of the award will vest on achieving threshold performance
Performance Share Plan Awards granted during 2020 are as follows: and thereafter straight-line sliding scales will apply until stretch performance is achieved.
Share price % of face
A holding period is attached to vested PSP awards requiring the vested shares to be held
at date of Number of value that Vesting (net of tax) for a further two years.
grant shares over would vest at performance
Type of Basis of award (9 October which award Face value of threshold measurement
Executive award granted 2020) was granted award performance period
Roger 115% of £14.07 46,228 £650,428 Three financial

Whiteside Nil cost salary years to
25%
Richard options 95% of £14.07 23,024 £323,947 31 December
Hutton salary 2022

Greggs plc
97
Outstanding share awards Legacy defined benefit pension scheme (Audited)

The following table sets out details of the PSP and savings-related share options The following table sets out the change in each Director’s accrued pension in the
(all of which were granted at a £nil cost to the Executive Director concerned) held by, Company’s defined benefit pension scheme during the year and their accrued benefits
or granted to, each Executive Director during the year: in the scheme at the year end:
Increase in
Accrued Accrued accrued Transfer
each share at date

At 2 January 2021
Date from which

At 29 December
annual annual pension value of
Market price of
Exercise price
pension pension Increase in entitlement increase in
Date of grant
exercisable
Expiry date
entitlement entitlement accrued for the year accrued
Exercised
Scheme
Granted
as at as at pension net of pension
of grant
number
number
number
number
number
Lapsed
29 December 2 January entitlement inflation of entitlement

2019
Date service 2019 2021 for the year 1.291% for the year
Executive Director Date of birth commenced £ £ £ £ £
57,303 – – – 57,3033 £nil May 17 £10.720 May 20 May 27 PSP
Richard Hutton 3/6/68 1/1/98 18,522 18,522 – – –
52,800 – – – 52,800 £nil Mar 18 £11.960 Mar 21 Mar 28 PSP
Roger Whiteside
35,543 - - - 35,543 £nil Apr 19 £18.300 Apr 22 Apr 29 PSP Notes:

- 46,228 - - 46,228 £nil Oct 20 £14.070 Oct 23 Oct 30 PSP 1 The pension entitlement shown is that which would be paid annually on retirement based on service to the end of the
year, but excluding any statutory increases which would be due after the year end.
169 – 1691 – - £8.07 Apr 17 Jun 20 Nov 20 SAYE
2 The inflation rate of 1.291 per cent shown in the table above is that published by the Secretary of State for Work and
124 - – – 124 £9.54 Apr 18 Jun 21 Nov 21 SAYE Pensions in accordance with Schedule 3 of the Pensions Schemes Act 1993.
84 - - - 84 £14.84 Apr 19 Jun 22 Nov 22 SAYE
Increase in the cash
- 88 - - 88 £14.24 Apr 20 Jun 23 Nov 23 SAYE Cash equivalent transfer value Cash equivalent transfer value equivalent transfer value
as at 28 December 2019 as at 2 January 2021 since 29 December 2019
146,023 46,316 169 - 192,170 £ £ £
27,041 - – – 27,0413 £nil May 17 £10.720 May 20 May 27 PSP Richard Hutton 371,422 392,930 –
24,916 - – – 24,916 £nil Mar 18 £11.960 Mar 21 Mar 28 PSP
Note:
16,772 - - - 16,772 £nil Apr 19 £18.300 Apr 22 Apr 29 PSP Cash equivalent transfer values have been calculated in accordance with Actuaries Guidance Note GN11 and the increase
Richard Hutton
- 23,024 - - 23,024 £nil Oct 20 £14.070 Oct 23 Oct 30 PSP is stated net of contributions made by the Director. The transfer values disclosed above do not represent a sum paid or
payable to the individual Director. Instead they represent a potential liability of the pension scheme.
169 1692 – – £8.07 Apr 17 Jun 20 Nov 20 SAYE
124 - – – 124 £9.54 Apr 18 Jun 21 Nov 21 SAYE The main features of the defined benefit pension scheme are:
84 - - - 84 £14.84 Apr 19 Jun 22 Nov 22 SAYE
- Pension at normal retirement age of 1/60 th of member’s final pensionable salary for each complete year and a
- 88 - - 88 £14.24 Apr 20 Jun 23 Nov 23 SAYE proportionate amount for each additional complete month of service from the date of joining the scheme until
69,106 23,112 169 - 92,049 5 April 2008 when the scheme was closed to future accrual;
- choice of giving up part of the pension in exchange for a tax-free cash sum subject to a limit of 25 per cent of the total
value of the member’s benefits under the scheme;
Notes: - pension payable in the event of ill health;
1 The market value on the date of exercise was £13.17 and the resultant gain on exercise was £862. - spouse’s pension on death; and

2 The market value on the date of exercise was £18.39 and the resultant gain on exercise was £1,744. - normal retirement at age 65.
3 These options have vested but have not yet been exercised. All other options have not yet vested.
Options granted under the all-colleague SAYE scheme are not subject to performance conditions.
All PSP options are subject to performance conditions as detailed elsewhere in this report.
Greggs plc
The mid-market price of ordinary shares in the Company as at 2 January 2021 was £17.90.
The highest and lowest mid-market prices of ordinary shares during the financial year were
98 £24.42 and £11.19, respectively.
Chief Executive pay compared to performance Directors’ shareholding and share interests (Audited)

The graph below shows a comparison of the total shareholder return for the Company’s Details of the shareholdings of each Executive Director as at 2 January 2021 and their
shares for each of the last ten financial years against the total shareholder return for interests in shares are detailed below with the percentage holding calculated using the
the companies comprised in the FTSE 250 Index (excluding Investment Trusts) and the share price at that date. As stated in the Directors’ remuneration policy, Executive Directors
FTSE 350 Index (excluding Investment Trusts). are required to build a shareholding equivalent in value to 200 per cent of basic salary.
Beneficially Beneficially % shareholding
These indices were chosen for this comparison because they include companies of owned at owned at Outstanding PSP Outstanding achieved at
Director 2 January 2021 28 December 2019 awards option awards 2 January 2021
broadly similar size to the Company.
Roger Whiteside 161,846 150,306 191,874 296 512%
Richard Hutton 94,014 89,218 91,753 296 521%
800
Ian Durant 11,700 11,700 – – n/a
700 Helena
600 Ganczakowski 1,100 1,100 – – n/a
Peter McPhillips 1,000 1,000 – – n/a
500
Sandra Turner 1,000 1,000 – – n/a
400
Kate Ferry 562 n/a – – n/a
300
200 There have been no changes since 2 January 2021 in the Directors’ interests noted above. Further details of outstanding
share awards are given on page 98.
100
0 Exit payments or payments to past Directors (Audited)

02
29
28
29
29
03
02
30
31
01
31
No payments for compensation or loss of office were paid to, or receivable by, any
De
De
De
De
De
De
Ja
Ja
Ja
De
Ja
c1
n2
n1
n1
n1
c1
c1
c1
c1
c1
c1
6
2
8
1
6
1
9
3
former Director.
7
FTSE 350 FTSE 250 Greggs

(excluding investment trusts) (excluding investment trusts)
Remuneration outcomes for Chief Executive over last ten years

The table below shows the total remuneration figure for the Chief Executive over the same
ten-year period as the graph above. The total remuneration figure includes the annual
bonus, pension and PSP/option awards which vested based on performance in those years.
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Total remuneration £707,245 £635,030 £1,011,381 £1,238,248 £2,462,193 £2,135,526 £1,676,652 £1,724,597 £2,530,080 £645,075
Bonus (% of max potential) 38.6% 18.0% 20.0% 100.0% 93.7% 86.7% 64.3% 59.2% 97.7% 0.0%
PSP/options (% max potential) 0% 78.3% n/a n/a 100% 100% 100% 80.2% 100% 0.0%
Greggs plc
99
External directorships Percentage change in remuneration of all Directors

Executive Directors may take up one Non-Executive Directorship outside of the Company The table below sets out the percentage change in remuneration for all Directors
subject to the Board’s approval and provided that such an appointment is not likely to lead (Executive and Non-Executive) compared to the wider workforce.
to a conflict of interest. It is recognised that this can support a Director’s development and
enhance experience as well as benefit the Company. Executive Directors will be entitled to For this purpose the wider workforce is defined as all full-time head office management
retain the fees of such an appointment. colleagues as they too are entitled to receive benefits and annual bonus awards.
% change from 2019 to 2020
Roger Whiteside was appointed as Non-Executive Director of Card Factory plc effective All Directors
from 4 December 2017. He retains the fees that he earns. In 2020 this fee was £45,000. –– salary (5.0%)
–– benefits (16.9%)
Richard Hutton was appointed as Non-Executive Director of The Lakes Distillery Company –– performance pay (100.0%)
plc effective from 1 June 2018. He retains the fees that he earns. In 2020 this fee was £19,167. Average per colleague
–– salary 0.0%
Relative importance of spend on pay
–– benefits* 3.2%
The Committee is aware of the importance of pay across the business and the table below
–– performance pay (100%)
shows the expenditure and percentage change in the overall spend on all colleague costs
compared to other key financial indicators.
* The average colleague benefits figure is based on tax year 2019/20 for 2020 and tax year 2018/19 for 2019.
2020 2019 % increase /
£m £m (decrease)
All colleague costs 414.8 412.4 0.6%

Dividends 0.0 72.1 (100%)
Retained profit (13.0) 91.8 (114.1%)
Corporation tax paid 10.7 20.3 (47.3%)

Greggs plc
100
Chief Executive pay ratio reporting As required in the regulations, we confirm our belief that the median pay ratio for the year

Outlined below is the ratio of the Chief Executive’s single figure of total remuneration for is consistent with the Company’s wider pay, reward and progression policies affecting our
2020 expressed as a multiple of total remuneration for UK colleagues. colleagues and the impact that Covid-19 has had on Executive Remuneration.
The three ratios referenced below are calculated by reference to the colleagues at the Our pay reflects the key market in which we operate, although we also support our
25th, 50th and 75th percentile. We additionally disclose the total pay and benefits and base colleagues with additional benefits such as profit share and SAYE participation. As
salary of the colleagues used to calculate the ratios. previously outlined in both our Chair’s statement and this report, we worked hard to
support our colleagues in 2020. At the start of this unprecedented year we made a special
In time, the table below will build to represent ten years of data: payment to all colleagues below Board level in recognition of their contribution to business
25th percentile 75th percentile
success. All our colleagues shared in a one-off payment costing £7 million which was paid
Financial year Method pay ratio Median pay ratio pay ratio at the end of January 2020 and was in addition to the annual profit share payment all our
2020 Option B 30:1 30:1 28:1 eligible colleagues received in March 2020 and included in the figures above. As well as this,
2019 Option B 132:1 126:1 108:1 full contract hours were paid from the date at which our shops and supply sites closed due
to lockdown (week commencing 23 March) until 1 July, with furlough pay being topped up to
Full year pay data for the 2020 financial year has been used to calculate the ratios. 100 per cent. As of 1 July, all colleagues on furlough were paid 80 per cent of their contract
hours or 80 per cent of their average pay, whichever was higher. Across the whole period
Disclosure of colleague data used to calculate the ratios 25th percentile Median 75th percentile
of furlough the government cap on earnings was not applied.
Total pay and benefits £21,340 £21,553 £22,647
Base salary £20,539 £20,738 £21,789
Due to the impact of Covid-19 the base pay award for our Chief Executive was cancelled
in 2020 and, as well as this, for the five-month period between April and August 2020 he
The following adjustments have been made in order to calculate the figures above: voluntarily took a 20 per cent reduction in his pay. Additionally the variable pay of the
Chief Executive has been impacted in 2020.
–– We have used the assumption of a 40 hour week in order to calculate the hourly rate
for the Chief Executive from the single total remuneration figure; and This report was approved by the Board on 16 March 2021.
–– As the hours our colleague work vary week to week we have converted their hourly rate
of pay into the equivalent 40 hour week in order that this is directly comparable with the Signed on behalf of the Board
hourly rate for the Chief Executive.
Of the three options set out in the legislation for calculating the Chief Executive pay ratio, Dr. Helena Ganczakowski
we are using Option B – which uses Gender Pay Gap (‘GPG’) data – to calculate the pay ratio. Chair of the Remuneration Committee

We believe the steady nature of our workforce ensures that the representative group 16 March 2021
remains the same as those individuals who are identified through the GPG reporting
process. The individuals represented at the 25th, median and 75th percentile are all
colleagues within our retail shops. The nature of our workforce and demographics are
Greggs plc
such that we have over 80 per cent of our colleagues working in our front-line shop
operations which is characteristic of our sector.
101
STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE ANNUAL REPORT AND ACCOUNTS
The Directors are responsible for preparing the Annual Report and the Group and Parent Company accounts in accordance with applicable law

and regulations.
Company law requires the Directors to prepare Group and Parent Company accounts for each financial year. Under that law they are required
to prepare the Group accounts in accordance with international accounting standards in conformity with the requirements of the Companies
Act 2006 and applicable law and have elected to prepare the Parent Company accounts on the same basis. In addition, the Group accounts
are required under the UK Disclosure Guidance and Transparency Rules to be prepared in accordance with International Financial Reporting
Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union (‘IFRSs as adopted by the EU’)
Under company law the Directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs
of the Group and Parent Company and of the Group’s profit or loss for that period. In preparing each of the Group and Parent Company accounts,
the Directors are required to:
–– select suitable accounting policies and then apply them consistently;

–– make judgements and estimates that are reasonable, relevant and reliable;
–– state whether they have been prepared in accordance with international accounting standards in conformity with the requirements of the
Companies Act 2006 and, as regards the Group accounts, International Financial Reporting Standards adopted pursuant to Regulation (EC)
No 1606/2002 as it applies in the European Union (‘IFRSs as adopted by the EU’);
–– assess the Group and Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern;
and
–– use the going concern basis of accounting unless they either intend to liquidate the Group or the Parent Company or to cease operations,
or have no realistic alternative but to do so.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Parent Company’s
transactions and disclose with reasonable accuracy at any time the financial position of the Parent Company and enable them to ensure that
its accounts comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the
preparation of accounts that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such
steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors’ Report, Directors’

Remuneration Report and Corporate Governance Statement that comply with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.
Legislation in the UK governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.
Greggs plc
102
STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE ANNUAL REPORT AND ACCOUNTS CONTINUED
Responsibility statement of the Directors in respect of the annual report and accounts

We confirm that to the best of our knowledge:
–– the accounts, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and
–– the Strategic report and Directors’ report includes a fair review of the development and performance of the business and the position of the
issuer and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties
that they face.
We consider the annual report and accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for
shareholders to assess the Group’s position and performance, business model and strategy.
Roger Whiteside Richard Hutton

Chief Executive Finance Director
16 March 2021

Greggs plc
103
INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF GREGGS PLC
1. Our opinion is unmodified Overview

We have audited the accounts of Greggs plc (‘the Company’) for the 53 week period ended Materiality: £5.0m (2019: £5.0m)
2 January 2021 which comprise the consolidated income statement, consolidated Group accounts as a whole
statement of comprehensive income, balance sheets, statements of changes in equity, 100% (2019:100%) of Group loss
Coverage (2019: profit) before tax
statements of cashflows, and the related notes, including the accounting policies.
Key audit matters vs 2019
Valuation of defined benefit
In our opinion:
Recurring risks pension obligation
Event driven New: Going Concern
–– the accounts give a true and fair view of the state of the Group’s and of the Parent
New: Recoverability of company-
Company’s affairs as at 2 January 2021 and of the Group’s loss for the period then ended;
managed shop Property, plant and
–– the Group accounts have been properly prepared in accordance with international equipment and right-of-use assets
accounting standards in conformity with the requirements of the Companies Act 2006;
–– the Parent Company accounts have been properly prepared in accordance with
international accounting standards in conformity with the requirements of, and 2. Key audit matters: our assessment of risks of material misstatement
as applied in accordance with the provisions of, the Companies Act 2006; and Key audit matters are those matters that, in our professional judgement, were of most
–– the accounts have been prepared in accordance with the requirements of the significance in the audit of the accounts and include the most significant assessed risks
Companies Act 2006 and, as regards the Group accounts, Article 4 of the IAS Regulation of material misstatement (whether or not due to fraud) identified by us, including those
to the extent applicable. which had the greatest effect on: the overall audit strategy; the allocation of resources in
the audit; and directing the efforts of the engagement team. We summarise below the key
Basis for opinion audit matters, in decreasing order of audit significance, in arriving at our audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK) above, together with our key audit procedures to address those matters and, as required
(‘ISAs (UK)’) and applicable law. Our responsibilities are described below. We believe that for public interest entities, our results from those procedures. These matters were
the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. addressed, and our results are based on procedures undertaken, in the context of, and
Our audit opinion is consistent with our report to the Audit Committee. solely for the purpose of, our audit of the accounts as a whole, and in forming our opinion
thereon, and consequently are incidental to that opinion, and we do not provide a separate
We were first appointed as auditor by the Company before 1984. The period of total opinion on these matters.
uninterrupted engagement is for more than the 37 financial years ended 2 January 2021.
We have fulfilled our ethical responsibilities under, and we remain independent of the
Group in accordance with, UK ethical requirements including the FRC Ethical Standard
as applied to listed public interest entities. No non-audit services prohibited by that

standard were provided.
Greggs plc
104

2. Key audit matters: our assessment of risks of material misstatement continued

The risk Our response
Going concern Disclosure quality We considered whether these risks could plausibly affect the liquidity or
covenant compliance in the going concern period by assessing the Directors’
(Group and Parent Company) The accounts explain how the Board has formed a judgement that it is
sensitivities over the level of available financial resources and covenant
appropriate to adopt the going concern basis of preparation for the Group
Refer to page 75 (Audit Committee Report), thresholds indicated by the Group’s financial forecasts taking account of
and Parent Company.
and page 122 (basis of preparation). severe, but plausible, adverse effects that could arise from these risks
That judgement is based on an evaluation of the inherent risks to the Group’s individually and collectively.
and Company’s business model and how those risks might affect the Group’s
Our procedures also included:
and Company’s financial resources or ability to continue operations over a
period of at least a year from the date of approval of the accounts. –– Funding assessment: Considering the availability and sufficiency of the
financing arrangements in place at the Group, including the headroom on
The risks most likely to adversely affect the Group’s and Company’s available
financial covenants in place on the Group’s new revolving credit facility;
financial resources and metrics relevant to debt covenants over this period
–– Our sector experience: The Directors performed an initial sensitivity
were:
analysis of the level of financial resources. We compared the Directors’
–– those associated with Covid-19 including the potential for assumptions of plausible (but not unrealistic) adverse effects that could
government-imposed shop closures (in addition to current lockdown arise from these risks individually and collectively to our knowledge of the
measures) or short-term changes to consumer behaviour as a result entity and the sector in which it operates. As a result of this comparison
of the pandemic; and we requested that the Directors applied the severe, but plausible, risk
–– the impact of a brand-damaging food scare on customer demand. sensitivities collectively;
There are also less predictable but realistic second-order impacts, such as the –– Historical comparisons: Assessing historical forecasting accuracy, by
impact of Brexit and potential changes to regulatory requirements or disruption comparing forecast results to those actually achieved by the Group and
at borders, which could result in the reduction of available financial resources. challenging the consistency of sales assumptions with the Group’s
performance during previous Covid-19 lockdowns;
The risk for our audit was whether or not those risks were such that they
–– Benchmarking assumptions: Assessing the key assumptions used in the
amounted to a material uncertainty that may have cast significant doubt about
cash flow forecast including comparing the estimated rate of recovery of
the ability to continue as a going concern. Had they been such, then that fact
sales to pre-Covid-19 levels to third-party analysis;
would have been required to have been disclosed.
–– Comparing assumptions: Considering whether the forecasts and
assumptions used by the Directors are consistent with other forecasts used
by the Group (including those used to assess Recoverability of Property,

plant and equipment and right-of-use assets); and
–– Assessing transparency: Considering whether the going concern disclosure
in the basis of preparation of the accounts gives a full and accurate
description of the Directors’ assessment of going concern, including the
Greggs plc
identified risks, and corresponding assumptions.
Our results: We found the going concern disclosure without any material
105 uncertainty to be acceptable (2019: acceptable).



Recoverability of Company-managed Forecast-based assessment Our procedures included:

Shop Property, plant and equipment
The Group and Parent Company have significant Shop Property, plant and –– Methodology implementation: Assessing the calculation methodology
and right-of-use assets
equipment and right-of-use assets balances. to ensure that it operates in line with the requirements of the accounting
(Group and Parent Company) standards including the period of forecast cashflows considered when
As a result of Covid-19 the Group made the decision to close a small number
determining recoverable amount;
(Impairment charge for shop property, plant of shops. For company-managed shops which will continue to trade the impact
and equipment and right-of-use assets: of Covid-19 on the Group’s business represents an impairment trigger meaning –– Sensitivity analysis: Performing our own sensitivity analysis over the key
£8.7 million (2019: £0.8 million)) that the recoverable amounts of these balances needs to be estimated. assumptions used by the Group and identifying those that have the greatest
impact on the impairment assessment;
The estimated recoverable amount is subjective due to the inherent uncertainty
involved in forecasting and discounting future cash flows. In particular, as –– Benchmarking assumptions: Assessing the assumptions applied to
Refer to page 73 (Audit Committee Report),
individual shops represent Cash Generating Units (CGUs), judgement is needed individuals shops for the return to pre-Covid-19 trading levels and the
pages 123 to 124 (accounting policy) and
in estimating the rate of recovery of sales at an individual shop level and timeframe of this recovery with reference to market conditions and
pages 146 to 149 (financial disclosures).
determining the period over which to forecast cash flows. third-party analysis;
The effect of these matters is that, as part of our risk assessment, we –– Historical comparisons: Comparing the assumed rate of recovery of trade
determined that the recoverable amount of company-managed Shop Property, with the performance at an individual shop level during the period and post
plant and equipment and right-of-use assets has a high degree of estimation year end, including trading during the second and third national lockdowns
uncertainty, with a potential range of reasonable outcomes greater than our in England and the additional measures applied in Scotland and Wales; and
materiality for the accounts as a whole. The accounts (page 124) disclose the
–– Assessing transparency: Assessing whether the Group’s disclosures about
sensitivity estimated by the Group.
the sensitivity of the outcome of the impairment assessment to changes in
key assumptions reflected the risks inherent in the valuation of Shop
Property, plant and equipment and right-of-use assets.
We performed the tests above rather than seeking to rely on any of the Group’s
controls because the nature of the balance is such that we would expect to
obtain audit evidence primarily through the detailed procedures described.
Our results: We found the Group and Parent Company company-managed

Shop Property, plant and equipment and right-of-use asset balances and the

related impairment charges to be acceptable (2019: acceptable).
Greggs plc
106


Valuation of defined benefit pension Subjective valuation Our procedures included:

obligation
Small changes in the assumptions and estimates used to value the Group’s –– Benchmarking assumptions: Challenging, with the support of our own
(Group and Parent Company) pension obligation (before deducting scheme assets) would have a significant actuarial specialists, the key assumptions applied, being the discount rate,
effect on the Group’s and Company’s net pension deficit. inflation rate, and mortality/life expectancy against externally derived data;
(£143.4 million; 2019: £127.6 million)
and
The effect of these matters is that, as part of our risk assessment, we
determined that valuation of the defined benefit pension obligation has a –– Assessing transparency: Considering the adequacy of the Group’s
Refer to page 75 (Audit Committee Report), high degree of estimation uncertainty, with a potential range of reasonable disclosures in respect of the sensitivity of the deficit to these assumptions.
pages 125 and 130 (accounting policy) and outcomes greater than our materiality for the accounts as a whole. The
We performed the tests above rather than seeking to rely on any of the Group’s
pages 155 to 158 (financial disclosures). accounts (Note 21) disclose the range/sensitivity estimated by the Group.
controls because the nature of the balance is such that we would expect to
obtain audit evidence primarily through the detailed procedures described.
Our results: We found the valuation of the pension obligation to be acceptable

(2019 result: acceptable).
We continue to perform procedures over Valuation of lease liabilities however, following the year of transition to the new leasing accounting standard there is reduced estimation
uncertainty on an ongoing basis, we have not assessed this as amongst the most significant risks in our current year audit and, therefore, they are not separately identified in our report
this year. In the prior year we reported a key audit matter in respect of the impact of uncertainties due to the UK exiting the European Union. Following the trade agreement between the
UK and the EU, and the end of the EU-exit implementation period, the nature of these uncertainties has changed. We continue to perform procedures over material assumptions in
forward-looking assessments such as going concern and impairment tests however we no longer consider the effect of the UK’s departure from the EU to be a separate key audit matter.

Greggs plc
107

3. Our application of materiality and an overview Performance materiality for the Group and Parent Our conclusions based on this work:

of the scope of our audit Company was set at 75% (2019: 75%) of materiality for
Materiality for the group accounts and the Parent Company the accounts as a whole, which equates to £3.75m –– we consider that the Directors’ use of the going concern
accounts as a whole was set at £5.0m (2019: £5.0m). We (2019: £3.75m) for both the Group and the Parent Company. basis of accounting in the preparation of the accounts
consider this the level which could reasonably be expected We applied this percentage in our determination of is appropriate;
to influence the economic decisions of users taken on the performance materiality because we did not identify –– we have not identified, and concur with the Directors’
basis of the accounts. In determining both group and parent any factors indicating an elevated level of risk. assessment that there is no material uncertainty
company materiality we had regard to Revenue, Total related to events or conditions that, individually or
Assets, Loss before tax for the period and average Profit We agreed to report to the Audit Committee any corrected collectively, may cast significant doubt on the Group’s
before tax over the previous three years. or uncorrected identified misstatements exceeding £0.25m or Company’s ability to continue as a going concern for
(2019: £0.25m), in addition to other identified misstatements the going concern period;
This represents a change from previous years where we that warranted reporting on qualitative grounds. –– we have nothing material to add or draw attention to
have set our materiality for the group accounts and parent in relation to the Directors’ statement on page 122 in
company accounts as a whole using group profit before tax The Group audit team performed the audit of the Group the accounts on the use of the going concern basis of
(excluding exceptional items) and parent company profit as if it was a single aggregated set of financial information accounting with no material uncertainties that may cast
before tax (excluding exceptional items) respectively as a which covered 100% (2019: 100%) of total Group revenue, significant doubt over the Group and Company’s use of
benchmark. In the current period, loss before tax does not Group loss before tax and total Group assets. The audit that basis for the going concern period; and
act as a useful benchmark for determining the level at was performed using the materiality and performance –– the related statement under the Listing Rules set out
which misstatements would influence the decisions of the materiality levels set out above. on page 66 is materially consistent with the accounts
users of the accounts because, due to the unprecedented and our audit knowledge.
impact of COVID-19 pandemic on the Group’s and company’s 4. Going concern
results, the result for the period is not representative of the The Directors have prepared the accounts on the going However, as we cannot predict all future events or
ongoing size of the business. We have therefore used concern basis as they do not intend to liquidate the Group or conditions and as subsequent events may result in
judgement to determine appropriate materiality levels with the Company or to cease their operations, and as they have outcomes that are inconsistent with judgements that
reference to Revenue and Total Assets (applying a concluded that the Group’s and the Company’s financial were reasonable at the time they were made, the above
maximum materiality level of 1% of each). position means that this is realistic. They have also conclusions are not a guarantee that the Group or the
concluded that there are no material uncertainties that Company will continue in operation.
In line with our audit methodology, our procedures on could have cast significant doubt over their ability to
individual account balances and disclosures were continue as a going concern for at least a year from the date
performed to a lower-threshold performance materiality, of approval of the accounts (‘the going concern period’).

so as to reduce to an acceptable level the risk that
individually immaterial misstatements in individual An explanation of how we evaluated management’s
account balances add up to a material amount across assessment of going concern is set out in the related key
the accounts as a whole. audit matter in section 2 of this report.
Greggs plc
108

5. Fraud and breaches of laws and regulations – to revenue recognition because revenue recognition is Firstly, the Group is subject to laws and regulations that

ability to detect non-complex and correlates closely to cash receipts. directly affect the accounts including financial reporting
Identifying and responding to risks of material We did not identify any additional fraud risks. legislation (including related companies’ legislation),
misstatement due to fraud distributable profits’ legislation, taxation legislation,
To identify risks of material misstatement due to fraud We performed procedures including: and pension legislation and we assessed the extent of
(‘fraud risks’) we assessed events or conditions that could compliance with these laws and regulations as part of
indicate an incentive or pressure to commit fraud or –– Identifying journal entries and other adjustments to our procedures on the related financial statement items.
provide an opportunity to commit fraud. Our risk test based on risk criteria and comparing the identified Secondly, the Group is subject to many other laws and
assessment procedures included: entries to supporting documentation. These included regulations where the consequences of non-compliance
those posted to unusual accounts, unusual entries to could have a material effect on amounts or disclosures in
–– Enquiring of Directors, the Audit Committee, internal cash and period-end entries in relation to the job the accounts, for instance through the imposition of fines
audit and Group Company Secretary and General retention scheme; and or litigation or the loss of the Group’s licence to operate.
Counsel and inspection of policy documentation as –– Assessing significant accounting estimates for bias. We identified the following areas as those most likely
to the Group’s high-level policies and procedures to to have such an effect: Food Safety, Health and Safety,
prevent and detect fraud, including the internal audit Identifying and responding to risks of material Employment Law and Data Protection regulations
function, and the Group’s channel for ‘whistleblowing’, misstatement due to non-compliance with laws recognising the nature of the Group’s activities. Auditing
as well as whether they have knowledge of any actual, and regulations standards limit the required audit procedures to identify
suspected or alleged fraud; We identified areas of laws and regulations that could non-compliance with these laws and regulations to enquiry
–– Reading Board, Audit Committee, Investment Board reasonably be expected to have a material effect on of the Directors and other management and inspection of
and Remuneration Committee minutes;. the accounts from our general commercial and sector regulatory and legal correspondence, if any. Therefore if a
–– Reading analysts’ reports published over the course experience, through discussion with the Directors and breach of operational regulations is not disclosed to us or
of the period; and other management (as required by auditing standards), evident from relevant correspondence, an audit will not
–– Using analytical procedures to identify any unusual and from inspection of the Group’s legal correspondence detect that breach.
or unexpected relationships. and discussed with the Directors and other management
the policies and procedures regarding compliance with Context of the ability of the audit to detect fraud
We communicated identified fraud risks throughout the laws and regulations. or breaches of law or regulation
audit team and remained alert to any indications of fraud Owing to the inherent limitations of an audit, there is an
throughout the audit. As the Group is regulated, our assessment of risks involved unavoidable risk that we may not have detected some
gaining an understanding of the control environment material misstatements in the accounts, even though
As required by auditing standards, and taking into account including the entity’s procedures for complying with we have properly planned and performed our audit in

the financial performance of the Group and our overall regulatory requirements. accordance with auditing standards. For example, the
knowledge of the control environment, we perform further removed non-compliance with laws and regulations
procedures to address the risk of management override We communicated identified laws and regulations is from the events and transactions reflected in the
of controls, in particular the risk that Group management throughout our team and remained alert to any indications accounts, the less likely the inherently limited procedures
Greggs plc
may be in a position to make inappropriate accounting of non-compliance throughout the audit. The potential required by auditing standards would identify it.
entries and the risk of bias in accounting estimates and effect of these laws and regulations on the accounts
judgements such as impairment and pension assumptions. varies considerably.
109 On this audit we do not believe there is a fraud risk related

5. Fraud and breaches of laws and regulations – Directors’ remuneration report We are also required to review the Viability statement, set

ability to detect continued In our opinion the part of the Directors’ Remuneration out on page 46 under the Listing Rules. Based on the above
In addition, as with any audit, there remained a higher risk Report to be audited has been properly prepared in procedures, we have concluded that the above disclosures
of non-detection of fraud, as these may involve collusion, accordance with the Companies Act 2006. are materially consistent with the accounts and our audit
forgery, intentional omissions, misrepresentations, or the knowledge.
override of internal controls. Our audit procedures are Disclosures of emerging and principal risks and longer-
designed to detect material misstatement. We are not term viability Our work is limited to assessing these matters in the
responsible for preventing non-compliance or fraud and We are required to perform procedures to identify whether context of only the knowledge acquired during our
cannot be expected to detect non-compliance with all laws there is a material inconsistency between the Directors’ accounts audit. As we cannot predict all future events or
and regulations. disclosures in respect of emerging and principal risks conditions and as subsequent events may result in
and the viability statement, and the accounts and our outcomes that are inconsistent with judgements that were
6. We have nothing to report on the other audit knowledge. reasonable at the time they were made, the absence of
information in the Annual Report anything to report on these statements is not a guarantee
The Directors are responsible for the other information Based on those procedures, we have nothing material as to the Group’s and Company’s longer-term viability.
presented in the Annual Report together with the to add or draw attention to in relation to:
accounts. Our opinion on the accounts does not cover the Corporate governance disclosures
other information and, accordingly, we do not express an –– the Directors’ confirmation within the Viability We are required to perform procedures to identify whether
audit opinion or, except as explicitly stated below, any form statement (page 46) that they have carried out a robust there is a material inconsistency between the Directors’
of assurance conclusion thereon. assessment of the emerging and principal risks facing corporate governance disclosures and the accounts and
the Group, including those that would threaten its our audit knowledge.
Our responsibility is to read the other information and, in business model, future performance, solvency and
doing so, consider whether, based on our accounts audit liquidity; Based on those procedures, we have concluded that each
work, the information therein is materially misstated or –– the Principal risks and uncertainties disclosures of the following is materially consistent with the accounts
inconsistent with the accounts or our audit knowledge. describing these risks and how emerging risks are and our audit knowledge:
Based solely on that work we have not identified material identified, and explaining how they are being managed
misstatements in the other information. and mitigated; and –– the Directors’ statement that they consider that the annual
–– the Directors’ explanation in the Viability statement of report and accounts taken as a whole is fair, balanced and
Strategic report and Directors’ report how they have assessed the prospects of the Group, understandable, and provides the information necessary
Based solely on our work on the other information: over what period they have done so and why they for shareholders to assess the Group’s position and
considered that period to be appropriate, and their performance, business model and strategy;

–– we have not identified material misstatements in the statement as to whether they have a reasonable –– the section of the annual report describing the work of
strategic report and the Directors’ report; expectation that the Group will be able to continue in the Audit Committee, including the significant issues
–– in our opinion the information given in those reports for operation and meet its liabilities as they fall due over that the audit committee considered in relation to the
the financial year is consistent with the accounts; and the period of their assessment, including any related accounts, and how these issues were addressed; and
Greggs plc
–– in our opinion those reports have been prepared in disclosures drawing attention to any necessary –– the section of the annual report that describes the
accordance with the Companies Act 2006. qualifications or assumptions. review of the effectiveness of the Group’s risk
management and internal control systems.
110

We are required to review the part of the Governance 8. Respective responsibilities 9. The purpose of our audit work and to whom we

Report relating to the Group’s compliance with the Directors’ responsibilities owe our responsibilities
provisions of the UK Corporate Governance Code specified As explained more fully in their statement set out on This report is made solely to the Company’s members,
by the Listing Rules for our review. We have nothing to pages 102 and 103, the Directors are responsible for: the as a body, in accordance with Chapter 3 of Part 16 of the
report in this respect. preparation of the accounts including being satisfied that Companies Act 2006. Our audit work has been undertaken
they give a true and fair view; such internal control as they so that we might state to the Company’s members those
7. We have nothing to report on the other matters determine is necessary to enable the preparation of matters we are required to state to them in an auditor’s
on which we are required to report by exception accounts that are free from material misstatement, report and for no other purpose. To the fullest extent
Under the Companies Act 2006, we are required to report whether due to fraud or error; assessing the Group and permitted by law, we do not accept or assume
to you if, in our opinion: Parent Company’s ability to continue as a going concern, responsibility to anyone other than the Company and the
disclosing, as applicable, matters related to going Company’s members, as a body, for our audit work, for this
–– adequate accounting records have not been kept by the concern; and using the going concern basis of accounting report, or for the opinions we have formed.
Parent Company, or returns adequate for our audit have unless they either intend to liquidate the Group or the
not been received from branches not visited by us; or Parent Company or to cease operations, or have no Nick Plumb
–– the Parent Company accounts and the part of the realistic alternative but to do so. (Senior Statutory Auditor)
Directors’ Remuneration Report to be audited are not in for and on behalf of KPMG LLP, Statutory Auditor
agreement with the accounting records and returns; or Auditor’s responsibilities. Chartered Accountants
–– certain disclosures of Directors’ remuneration specified Our objectives are to obtain reasonable assurance about Quayside House
by law are not made; or whether the accounts as a whole are free from material 110 Quayside
–– we have not received all the information and misstatement, whether due to fraud or error, and to issue Newcastle Upon Tyne
explanations we require for our audit. our opinion in an auditor’s report. Reasonable assurance NE1 3DX
is a high level of assurance, but does not guarantee that
We have nothing to report in these respects. an audit conducted in accordance with ISAs (UK) will 16 March 2021
always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are

considered material if, individually or in aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of the accounts.

A fuller description of our responsibilities is provided
on the FRC’s website at
www.frc.org.uk/auditorsresponsibilities.
Greggs plc
111
CONSOLIDATED INCOME STATEMENT

FOR THE 53 WEEKS ENDED 2 JANUARY 2021 (2019: 52 WEEKS ENDED 28 DECEMBER 2019)
2020

2019
Note £m £m
Revenue 1 811.3 1,167.9

Cost of sales (300.4) (418.1)
Cost of sales excluding exceptional items (299.6) (412.2)
Exceptional items 4 (0.8) (5.9)
Gross profit 510.9 755.7
Distribution and selling costs (465.8) (572.8)
Administrative expenses (52.1) (62.2)
Operating (loss) / profit (7.0) 114.8
Finance expense 6 (6.7) (6.5)
(Loss) / profit before tax 3-6 (13.7) 108.3
Income tax 8 0.7 (21.3)
(Loss) / profit for the financial year attributable to equity holders of the Parent (13.0) 87.0
Basic (loss) / earnings per share 9 (12.9p) 86.2p
Diluted (loss) / earnings per share 9 (12.9p) 85.0p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

2020 2019
Note £m £m
(Loss) / profit for the financial year (13.0) 87.0

Other comprehensive income
Items that will not be recycled to profit and loss:
Remeasurements on defined benefit pension plans 21 (11.2) 3.0
Tax on remeasurements on defined benefit pension plans 8 2.1 (0.5)
Other comprehensive income for the financial year, net of income tax (9.1) 2.5
Total comprehensive income for the financial year (22.1)

89.5
Greggs plc
112
BALANCE SHEETS
AT 2 JANUARY 2021 (2019: 28 DECEMBER 2019)
Group Parent Company
2019 2019
2020 Restated 2020 Restated

Note £m £m £m £m
ASSETS
Of the Group loss for the year
Non-current assets
£12.9 million (2019: £87.0 million
Intangible assets 10 15.6 16.8 15.6 16.8 profit) is dealt with in the books
Property, plant and equipment 12 345.3 353.7 345.9 354.3 of the Parent Company.
Right-of-use assets 11 270.1 272.7 270.1 272.7
Investments 13 – – 5.0 5.0 The accounts on pages 112 to 166
631.0 643.2 636.6 648.8 were approved by the Board of
Current assets Directors on 16 March 2021 and
Inventories 15 22.5 23.9 22.5 23.9 were signed on its behalf by:
Trade and other receivables 16 39.4 27.1 39.4 27.1
Cash and cash equivalents 17 36.8 91.3 36.8 91.3 Roger Whiteside
98.7 142.3 98.7 142.3 Richard Hutton
Total assets 729.7 785.5 735.3 791.1
LIABILITIES Company Registered Number 502851
Current liabilities
Trade and other payables 18 (91.1) (142.3) (98.8) (150.0)
Current tax liability 19 – (11.8) – (11.8)
Lease liabilities 11 (48.6) (48.8) (48.6) (48.8)
Provisions 22 (4.4) (5.8) (4.4) (5.8)
(144.1) (208.7) (151.8) (216.4)
Non-current liabilities
Other payables 20 (3.7) (4.2) (3.7) (4.2)
Defined benefit pension liability 21 (11.9) (0.6) (11.9) (0.6)
Lease liabilities 11 (243.1) (226.9) (243.1) (226.9)
Deferred tax liability 14 (2.3) (2.4) (1.8) (2.0)
Long-term provisions 22 (3.0) (1.6) (3.0) (1.6)
(264.0) (235.7) (263.5) (235.3)
Total liabilities (408.1) (444.4) (415.3) (451.7)
Net assets 321.6 341.1 320.0 339.4

EQUITY
Capital and reserves
Issued capital 23 2.0 2.0 2.0 2.0
Share premium account 15.7 13.5 15.7 13.5
Greggs plc
Capital redemption reserve 23 0.4 0.4 0.4 0.4

Retained earnings 303.5 325.2 301.9 323.5
Total equity attributable to equity holders of the Parent 321.6 341.1 320.0 339.4
113
STATEMENTS OF CHANGES IN EQUITY

Group

52 weeks ended 28 December 2019 (Restated)
Attributable to equity holders of the Company
Capital
Issued Share redemption Retained
capital premium reserve earnings Total
Note £m £m £m £m £m
Balance at 30 December 2018 (as previously reported) 2.0 13.5 0.4 313.2 329.1
Impact of change in accounting policy * – – – (5.7) (5.7)
Restated balance at 30 December 2018 2.0 13.5 0.4 307.5 323.4
Total comprehensive income for the year
Profit for the financial year – – – 87.0 87.0
Other comprehensive income – – – 2.5 2.5
Total comprehensive income for the year – – – 89.5 89.5
Transactions with owners, recorded directly in equity
Sale of own shares – – – 4.9 4.9
Purchase of own shares – – – (11.8) (11.8)
Share–based payment transactions 21 – – – 4.4 4.4
Dividends to equity holders – – – (72.1) (72.1)
Tax items taken directly to reserves 8 – – – 2.8 2.8
Total transactions with owners – – – (71.8) (71.8)
* Details of the change in accounting policy and consequent restatement are given in the Basis of preparation on page 121.

Greggs plc
114
STATEMENTS OF CHANGES IN EQUITY CONTINUED

Group

53 weeks ended 2 January 2021
Capital
Balance at 29 December 2019 (restated) 2.0 13.5 0.4 325.2 341.1

Loss for the financial year – – – (13.0) (13.0)
Other comprehensive income – – – (9.1) (9.1)
Total comprehensive income for the year – – – (22.1) (22.1)
Issue of ordinary shares – 2.2 – – 2.2
Share-based payment transactions 21 – – – 0.9 0.9
Dividends to equity holders – – – – –
Tax items taken directly to reserves 8 – – – (1.5) (1.5)
Total transactions with owners – 2.2 – 0.4 2.6
Balance at 2 January 2021 2.0 15.7 0.4 303.5 321.6

Greggs plc
115

Parent Company

52 weeks ended 28 December 2019 (Restated)
Capital
Balance at 30 December 2018 (as previously reported) 2.0 13.5 0.4 311.5 327.4
Impact of change in accounting policy * – – – (5.7) (5.7)
Profit for the financial year 7 _ _ _ 87.0 87.0
Other comprehensive income _ _ _ 2.5 2.5
Total comprehensive income for the year – – – 89.5 89.5
Share–based payment transactions 21 – – – 4.4 4.4
Dividends to equity holders – – – (72.1) (72.1)
Tax items taken directly to reserves 8 – – – 2.8 2.8
Total transactions with owners – – – (71.8) (71.8)
* Details of the change in accounting policy and consequent restatement are given in the Basis of preparation on page 121.

Greggs plc
116

Parent Company

53 weeks ended 2 January 2021
Capital
Balance at 29 December 2019 (restated) 2.0 13.5 0.4 323.5 339.4

Loss for the financial year 7 – – – (12.9) (12.9)
Other comprehensive income – – – (9.1) (9.1)
Total comprehensive income for the year – – – (22.0) (22.0)
Issue of ordinary shares – 2.3 – – 2.3
Share-based payment transactions 21 – – – 0.9 0.9
Dividends to equity holders – – – – –
Tax items taken directly to reserves 8 – – – (1.5) (1.5)
Total transactions with owners – 2.3 – 0.4 2.7

Greggs plc
117
STATEMENTS OF CASHFLOWS

2020 2019 2020 2019
Note £m £m £m £m
Operating activities
Cash generated from operations (see page 119) 61.6 246.0 61.6 246.0
Income tax paid (10.7) (20.3) (10.7) (20.3)
Interest paid on lease liabilities (6.5) (6.6) (6.5) (6.6)
Interest paid on borrowings (0.8) – (0.8) –
Net cash inflow from operating activities 43.6 219.1 43.6 219.1
Investing activities
Acquisition of property, plant and equipment (58.8) (85.4) (58.8) (85.4)
Acquisition of intangible assets (2.8) (3.7) (2.8) (3.7)
Proceeds from sale of property, plant and equipment 1.8 1.4 1.8 1.4
Interest received 6 0.6 0.3 0.6 0.3
Net cash outflow from investing activities (59.2) (87.4) (59.2) (87.4)
Financing activities
Proceeds from issue of share capital 2.2 – 2.2 –
Sale of own shares 1.5 4.9 1.5 4.9
Purchase of own shares (0.5) (11.8) (0.5) (11.8)
Proceeds from loans and borrowings 100.0 – 100.0 –
Dividends paid – (72.1) – (72.1)
Repayment of loans and borrowings (100.0) – (100.0) –
Repayment of principal on lease liabilities (42.1) (49.6) (42.1) (49.6)
Net cash outflow from financing activities (38.9) (128.6) (38.9) (128.6)
Net (decrease)/increase in cash and cash equivalents (54.5) 3.1 (54.5) 3.1
Cash and cash equivalents at the start of the year 17 91.3 88.2 91.3 88.2
Cash and cash equivalents at the end of the year 17 36.8 91.3 36.8 91.3

Greggs plc
118
STATEMENTS OF CASHFLOWS CONTINUED

Cash flow statement – cash generated from operations

2020 2019 2020 2019
£m £m £m £m
(Loss)/profit for the financial year (13.0) 87.0 (12.9) 87.0

Amortisation 10 4.0 3.8 4.0 3.8
Depreciation – property, plant and equipment 12 56.9 56.1 56.9 56.1
Depreciation – right-of-use assets 11 51.9 50.8 51.9 50.8
Impairment – property, plant and equipment 12 5.2 0.3 5.2 0.3
Impairment – right-of-use assets 8.8 0.5 8.8 0.5
Loss on sale of property, plant and equipment 0.5 1.2 0.5 1.2
Release of government grants (0.5) (0.5) (0.5) (0.5)
Share-based payment expenses 21 0.9 4.4 0.9 4.4
Finance expense 6 6.7 6.5 6.7 6.5
Income tax expense 8 (0.7) 21.3 (0.8) 21.3
Decrease / (increase) in inventories 1.4 (3.1) 1.4 (3.1)
(Increase) / decrease in receivables (12.3) 4.5 (12.3) 4.5
(Decrease) / increase in payables (48.2) 19.9 (48.2) 19.9
Decrease in provisions – (1.7) – (1.7)
Decrease in pension liability 21 – (5.0) – (5.0)
Cash from operating activities 61.6 246.0 61.6 246.0

Greggs plc
119
NOTES TO THE CONSOLIDATED ACCOUNTS
Significant accounting policies

Greggs plc (“the Company”) is a company incorporated and domiciled in the UK. The Group accounts consolidate those of the Company and its
subsidiaries (together referred to as “the Group”). The results of the associate are not consolidated on the grounds of materiality. The Parent
Company accounts present information about the Company as a separate entity and not about its Group.
The accounts were authorised for issue by the Directors on 16 March 2021.
(a) Statement of compliance

Both the Parent Company accounts and the Group accounts have been prepared and approved by the Directors in accordance with international
accounting standards in conformity with the requirements of the Companies Act 2006 and, as regards the Group accounts, International
Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union (‘IFRSs as adopted by the
EU’). On publishing the Parent Company accounts here together with the Group accounts, the Company is taking advantage of the exemption in
s408 of the Companies Act 2006 not to present its individual income statement and related notes that form a part of these approved accounts.
(b) Basis of preparation

The accounts are presented in pounds sterling, rounded to the nearest £0.1 million, and are prepared on the historical cost basis except the defined
benefit pension asset/liability, which is recognised as the fair value of the plan assets less the present value of the defined benefit obligation.
The Group’s business activities, together with the factors likely to affect its future development, performance and position are set out in the
Directors’ report and strategic report on pages 2 to 53. The financial position of the Group, its cash flows and liquidity position are described in
the financial review on pages 41 to 44. In addition, Note 2 to the accounts includes: the Group’s objectives, policies and processes for managing
its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its exposures to credit risk
and liquidity risk.
The Group chose not to restate business combinations prior to the IFRS transition date (1 January 2004), as no significant acquisitions had taken
place during the previous ten years. The Group’s policy up to and including 1997 was to eliminate goodwill arising upon acquisitions against
reserves. Under IFRS 1 and IFRS 3, such goodwill remains eliminated against reserves.
The accounting policies set out below have been applied consistently throughout the Group and to all years presented in these consolidated
accounts except if mentioned otherwise. From 29 December 2019 the following amendments were adopted by the Group:

–– Amendments to References to the Conceptual Framework in IFRS Standards;
–– Amendments to IAS 1 and IAS 8: Definition of Material; and
–– Amendment to IFRS 16 Covid-19-Related Rent Concessions.
Greggs plc
Their adoption did not have a material effect on the accounts. The Group chose not to use the practical expedient available in the amendment to
IFRS 16.
120
NOTES TO THE CONSOLIDATED ACCOUNTS CONTINUED
Significant accounting policies continued

(b) Basis of preparation continued
Restatement of comparatives
Due to a change in accounting policy there has been a prior-year restatement of deferred tax balances as a result of an agenda decision issued
by the IFRS Interpretations Committee (‘IFRIC’) in May 2020 which clarified the accounting for deferred tax when the recovery of the carrying
amount of an asset gives rise to multiple tax consequences. In these situations, the Company previously assessed the net position for
recoverability but following the IFRIC agenda decision is now required to consider the tax consequences separately and as a result a deferred tax
asset of £5.7 million relating to buildings which previously qualified for industrial buildings allowances that was first recognised in 2008 has been
derecognised in the opening position for the comparative period due to not being considered recoverable. This deferred tax asset of £5.7 million
remains unrecognised at 2 January 2021.
This restatement has resulted in the following balance sheet changes whereby deferred tax is adjusted by £5.7 million, resulting in derecognition
of the previous deferred tax asset and recognition of a deferred tax liability, and retained earnings reduced by £5.7 million. There is no impact on
profit and loss or earnings per share in either the current or the prior year.
At 28 December At 30 December At 28 December At 30 December
2019 2018 2019 2018
£m £m £m £m
Deferred tax asset / (liability)

As originally stated – deferred tax asset 3.3 0.2 3.7 0.6
Adjustment (5.7) (5.7) (5.7) (5.7)
As restated – deferred tax liability (2.4) (5.5) (2.0) (5.1)
Retained earnings
As originally stated 330.9 313.2 329.2 311.5
Adjustment (5.7) (5.7) (5.7) (5.7)
As restated 325.2 307.5 323.5 305.8
The accounting policy for deferred tax has been updated to reflect that when the recovery of the carrying amount of an asset gives rise to
multiple tax consequences which are not subject to the same income tax laws, separate temporary differences are identified, and the deferred
tax on these is accounted for separately, including assessment of the recoverability of any deferred tax assets that arise.

Greggs plc
121

Going concern
The Directors have considered the adoption of the going concern basis of preparation for these accounts in the context of the continued
uncertainty regarding the ongoing impact of Covid-19 on the trading performance of the Group. At the end of the reporting period the Group had
available liquidity comprised of cash and cash equivalents plus an undrawn revolving credit facility (RCF) (which is committed to December 2023)
totalling £106.8 million. The RCF covenants relate to maximum borrowing levels and minimum liquidity for the 2021 financial year, thereafter they
relate to maximum leverage and a minimum fixed charge cover. How these covenants are measured and the required ratios are set out in Note 2.
In 2020 it was necessary to protect the cash position of the Group whilst the additional credit facilities were put in place. Dividends and capital
expenditure were temporarily stopped along with any non-essential expenditure. Government support for job retention was accessed and the
Company benefitted from business rate relief.
The Directors have reviewed cash flow forecasts – which include severe but plausible downsides – prepared for a period of 12 months from the
date of approval of these accounts as well as covenant compliance for that period.
The forecasts assume that:
–– the Covid-19 pandemic requires two months of further lockdown restrictions in November 2021 and February 2022, during which the
Company continues to trade as it has done during the most recent periods of lockdown restrictions (i.e. its shops remain open albeit trading
at reduced levels);
–– there is a gradual recovery in sales levels outside of the restricted periods, which the Group has modelled based on experience in the second
half of 2020;
–– no further government support is utilised (including for periods where continued availability of support has already been announced);
In this scenario the Group is able to operate without needing to draw on its existing committed lending facility and without taking mitigating
actions such as reducing capital expenditure and other discretionary spend.
The Directors further considered a more severe scenario where the Group suffers from a brand-damaging food scare resulting in a significant
sales reduction in addition to the downside assumptions described above. In this scenario the Group would take mitigating actions in respect

of capital expenditure and other discretionary spend. This forecast scenario shows a possible requirement to draw on the RCF but no breaches
of the covenants linked to it.
After reviewing these cash flow forecasts and considering the continued uncertainties and mitigating actions that can be taken, the Directors
Greggs plc
believe that it is appropriate to prepare the accounts on a going concern basis. After making enquiries, the Directors are confident that the
Company and the Group will have sufficient funds to continue to meet their liabilities as they fall due for at least 12 months from the date of
approval of the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
122

Key estimates and judgements
The preparation of financial information in conformity with adopted IFRSs requires management to make judgements, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate
is revised if the revision affects only that year, or in the year of revision and future years if the revision affects both current and future years.
Impairment
Property, plant and equipment and right-of-use assets are reviewed for impairment if events or changes in circumstances indicate that the
carrying value may not be recoverable. For example, shop fittings and right-of-use assets may be impaired if sales in that shop fall. When a review
for impairment is conducted the recoverable amount is estimated based on either value-in-use calculations or fair value less costs of disposal.
Both value-in-use and fair value less costs of disposal calculations require management to estimate future cash flows generated by the assets
and an appropriate discount rate. Consideration is also given to whether the impairment assessments made in prior years remain appropriate
based on the latest expectations in respect of recoverable amount. Where it is concluded that the impairment has reduced, a reversal of the
impairment is recorded.
The Covid-19 crisis has meant that all shops have had periods of no, or reduced, sales and the rate of recovery of sales is inherently uncertain.
This is considered to be an impairment trigger and as a result all assets in company-managed shops have been tested for impairment.
As a result of the crisis and following the shutdown period a decision was made not to reopen 38 shops. All shop fittings and right-of-use assets
in these shops have been fully impaired (with no significant degree of estimation required) at a cost of £5.3 million (of which £2.5 million relates
to fixtures and fittings and £2.8 million relates to right-of-use assets). In addition, a provision of £2.5 million was made for onerous costs and
dilapidations directly related to these closures which is expected to be utilised over the remaining term of these shop leases. The assumptions
regarding the lease term in respect of these shops were reviewed and where required the lease liability was remeasured before assessing the
shop for impairment.
For the remainder of the estate an impairment review was carried out using the following assumptions:
–– Shops have been categorised into different catchment areas (e.g. city centres, transport hubs) and assumptions made on the rate of like-for-

like sales recovery for each catchment;
–– Like-for-like sales have been assumed to grow from December 2020 levels to a level six per cent lower than pre-Covid-19 levels (on average
across the estate) by the end of 2021, then continuing to grow to pre-lockdown levels by December 2022, with a further one per cent growth
per annum beyond that through to 2027. Where shops are used to fulfil online orders, the revenues from fulfilling these are included within
Greggs plc
the estimated cash flows for the shop;

–– The like-for-like sales recovery assumes temporary national lockdown restrictions (i.e. schools and non-essential retail closed) for the whole
of Q1 2021, with further temporary lockdowns in November 2021 and February 2022. For those periods it is assumed that Greggs would trade
123 at a sales level consistent with its recent experience of these conditions;

–– Earning before interest, tax, depreciation, amortisation and rent (‘EBITDAR’) is used as a proxy for net cash flow excluding rental payments.
The base figures are assumed to include any potential impacts of Brexit;
–– The discount rate is based on the Group’s weighted average cost of capital (‘WACC’) with an uplift for risk in the current environment and at
2 January 2021 was 6.7 per cent (28 December 2019: 5.4 per cent); and
–– Consideration of the appropriate period over which to forecast cash flows including with regard to the remaining lease term.
On the basis of these calculations an impairment provision of £8.7 million has been made in respect of 87 shops (of which £2.7 million relates
to fixtures and fittings and £6.0 million relates to right-of-use assets).
Given the uncertainties of the current trading environment, the sensitivities of these assumptions on the impairment calculation have been tested:
–– A one per cent increase in the discount rate would result in an additional provision of £0.7 million, covering a further ten properties. A one
percent decrease in the discount rate would result in a reduction in the provision of £0.6 million, with six fewer properties impaired;
–– A five per cent per annum increase in the sales recovery assumption would result in a reduction in the provision of £3.7 million with 26 fewer
shops impaired. A five per cent decrease in the sales recovery assumption would result in an additional provision of £6.4 million with a further
41 properties impaired; and
–– A more severe national lockdown that required our shops to close entirely for the month of January 2022 would result in an additional
impairment of £1.4 million covering a further ten shops.
Determining the rate used to discount lease payments

At the commencement date of property leases the lease liability is calculated by discounting the lease payments. The discount rate used should
be the interest rate implicit in the lease. However, if that rate cannot be readily determined, which is generally the case for property leases, the
lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain
an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. As the Group
had no suitable external borrowings from which to determine that rate, judgement is required to determine the incremental borrowing rate to be
used. At the start of each month a risk-free rate is obtained, linked to the length of the lease and an adjustment is then made to reflect credit risk.
For the lease liabilities at 2 January 2021 a 0.1 per cent change in the discount rate used would have adjusted the total liabilities by £1.2 million.
Determining the lease term of property leases

At the commencement date of property leases the Group normally determines the lease term to be the full term of the lease, assuming that any

option to break or extend the lease is unlikely to be exercised and it is not reasonably certain that the Group will continue in occupation for any
period beyond the lease term. Leases are regularly reviewed and will be revalued if it becomes reasonably certain that a break clause or option
to extend the lease is exercised.
Greggs plc
Previously, the Group classified property leases as operating leases under IAS 17. The leases typically run for a period of 10 or 15 years. In England,
the majority of its property leases are protected by the Landlord and Tenant Act 1954 (LTA) which affords protection to the lessee at the end of an
existing lease term.
124

Judgement is required in respect of those property leases where the current lease term has expired but the Group remains in negotiation
with the landlord for potential renewal. Where the Group believes renewal to be reasonably certain and the lease is protected by the LTA it will
be treated as having been renewed at the date of termination of the previous lease term and on the same terms as the previous lease. Where
renewal is not considered to be reasonably certain the leases are included with a lease term which reflects the anticipated notice period under
relevant legislation. The lease will be revalued when it is renewed to take account of the new terms. As at 2 January 2021 the financial effect of
applying this judgement was an increase in recognised lease liabilities of £31.9 million (2019: £41.3 million).
Treatment of items as exceptional

The accounts for both the current and the prior year include items which are material and unusual in nature and which are considered to be
of such significance that they require separate disclosure on the face of the income statement. These items include the decision to invest in
and reshape the Company’s supply chain, with a multi-year, known budget project, in order to support future growth. Judgement is required in
ensuring that only items that relate directly to this activity are separately presented. Further details of items treated as exceptional are given
in Note 4.
Post-retirement benefits
The determination of the defined benefit obligation of the Group’s defined benefit pension scheme depends on the selection of certain
assumptions with significant estimation uncertainty including the discount rate, inflation rate, mortality rates and commutation. Differences
arising from actual experience or future changes in assumptions will be reflected in future years. The key assumptions, sensitivities and carrying
amounts for 2020 are given in Note 21.
(c) Basis of consolidation

The consolidated accounts include the results of Greggs plc and its subsidiary undertakings for the 53 weeks ended 2 January 2021. The
comparative period is the 52 weeks ended 28 December 2019.
(i) Subsidiaries
Subsidiaries are entities controlled by the Company. The Company controls an entity when it is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power over the entity. The accounts of subsidiaries
are included in the consolidated accounts from the date on which control commences until the date on which control ceases.

(ii) Associates
Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies. Significant
influence is presumed to exist when the Group holds between 20 and 50 per cent of the voting power of another entity unless it can be clearly
Greggs plc
demonstrated that this is not the case. At the year end the Group has one associate which has not been consolidated on the grounds of
materiality (see Note 13).
125

(c) Basis of consolidation continued
(iii) Transactions eliminated on consolidation
Intragroup balances, and any unrealised gains and losses or income and expenses arising from intragroup transactions, are eliminated in
preparing the consolidated accounts.
(d) Exceptional items

Exceptional items are defined as items of income and expenditure which are material and unusual in nature and which are considered to be
of such significance that they require separate disclosure on the face of the income statement. Any future movements on items previously
classified as exceptional will also be classified as exceptional.
(e) Foreign currency

Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies at the balance sheet date are translated at the foreign exchange rate ruling at that date. Non-
monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at
the date of the transaction. Foreign exchange differences arising on translation are recognised in the income statement.
(f) Intangible assets

The Group’s only intangible assets relate to software and the cost of its implementation which are measured at cost less accumulated
amortisation and accumulated impairment losses. Subsequent expenditure is capitalised only when it increases the future economic benefits
embodied in the specific asset to which it relates. All other expenditure is recognised in the income statement as incurred.
Amortisation is recognised in the income statement on a straight-line basis over the estimated useful lives of intangible assets from the date
that they are available for use. The estimated useful lives are five to seven years.
Assets in the course of development are recategorised and amortisation commences when the assets are available for use.
(g) Leases
(i) Lease recognition
At inception of a contract the Group assesses whether a contract is or contains a lease. A contract is, or contains, a lease if the contract conveys

a right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right
to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16.
For leases of properties in which the Group is a lessee, it has applied the practical expedient permitted by IFRS 16 and will account for each lease
Greggs plc
component and any associated non-lease components as a single lease component.
126

(g) Leases continued
(ii) Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less accumulated
depreciation and impairment losses and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount
of lease liabilities recognised, adjusted for any lease payments made at or before the commencement date, less any lease incentives received.
Right-of-use assets are depreciated over the shorter of the asset’s useful life or the lease term on a straight-line basis. Right-of-use assets are
subject to, and reviewed regularly for, impairment. Depreciation on right-of-use assets is included in selling and distribution costs in the
consolidated income statement.
(iii) Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of the lease payments to be made
over the lease term. Lease payments include fixed payments less any lease incentives receivable and variable lease payments that depend on an
index or rate. Any variable lease payments that do not depend on an index or rate are recognised as an expense in the period in which the event or
condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date if the
interest rate implicit in the lease is not readily determinable. Generally the Group uses its incremental borrowing rate as the discount rate. When
there are no external borrowings, judgement would be required to determine an approximation, calculated based on UK Government Gilt rates of
an appropriate duration and adjusted by an indicative credit premium.
After the commencement date, the lease liability is increased to reflect the accretion of interest and reduced for lease payments made. In
addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term or a change in the fixed lease
payments. Interest charges are included in finance costs in the consolidated income statement.
(iv) Short-term leases and leases of low-value assets

The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery and equipment that have a
lease term of less than 12 months and leases of low-value assets. Lease payments relating to short-term leases and leases of low-value assets
are recognised as an expense on a straight-line basis over the lease term.

(v) Variable lease payments
Some property leases contain variable payment terms that are linked to sales generated from a shop. For individual shops, up to 100 per cent
of lease payments are on the basis of variable payment terms. These payments are recognised in the income statement in the period in which
the condition that triggers them occurs.
Greggs plc
127

(h) Property, plant and equipment
(i) Owned assets
Items of property, plant and equipment are stated at cost or deemed cost less accumulated depreciation (see below) and impairment losses
(see accounting policy (l)). The cost of self-constructed assets includes the cost of materials and direct labour.
(ii) Subsequent costs

The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable
that the future economic benefits embodied within the component will flow to the Group, and its cost can be measured reliably. The carrying
value of the replaced component is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in
the income statement as incurred.
(iii) Depreciation
Depreciation is provided so as to write off the cost (less residual value) of each item of property, plant and equipment during its expected useful
life using the straight-line method over the following periods:
Freehold and long leasehold buildings 20 to 40 years

Short leasehold properties 10 years or length of lease if shorter
Plant, machinery, equipment, vehicles, fixtures and fittings 3 to 10 years
Freehold land is not depreciated.
Depreciation methods, useful lives and residual values (if not insignificant) are reassessed annually.
(iv) Assets in the course of construction

These assets are recategorised and depreciation commences when the assets are available for use.
(i) Investments
Non-current investments comprise investments in subsidiaries and associates which are carried at cost less impairment.

Current investments comprise fixed-term, fixed-rate bank deposits where the term is greater than three months.
(j) Inventories
Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of
Greggs plc
business, less the estimated costs of completion and selling expenses. The cost of inventories includes expenditure incurred in acquiring the
inventories and direct production labour costs.
128

(k) Cash and cash equivalents
Cash and cash equivalents comprises cash at bank, in hand, debit and credit card receivables and call deposits with an original maturity of
three months or less. Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included
as a component of cash and cash equivalents for the purpose of the statement of cash flows.
(l) Impairment
The carrying amounts of the Group and Company’s assets, other than inventories and deferred tax assets, are reviewed at each balance sheet
date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.
Impairment reviews are carried out on an individual shop basis.
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognised
in the income statement. Impairment losses recognised in prior years are assessed at each reporting date and reversed if there has been a
change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would have been determined, net of depreciation, if no impairment loss had been recognised.
(m) Non-current assets held for sale

Non-current assets that are expected to be recovered primarily through sale rather than through continuing use are classified as held for sale.
Immediately before classification as held for sale, the assets are remeasured in accordance with the Group and Company’s accounting policies.
Thereafter generally the assets are measured at the lower of their carrying amount and fair value less cost to sell. Once classified as held for
sale assets are no longer depreciated or amortised.
(n) Share capital and reserves

(i) Repurchase of share capital
When share capital recognised as equity is repurchased, the amount of the consideration paid, including directly attributable costs, is
recognised as a deduction from equity. Repurchased shares that are held in the employee share ownership plan are classified as treasury shares
and are presented as a deduction from total equity.
(ii) Dividends

Dividends are recognised as a liability when the Company has an obligation to pay and the dividend is no longer at the Company’s discretion.
(iii) Distributable reserves

All Parent Company retained earnings are distributable and are the only such reserves.
Greggs plc
(o) Employee share ownership plan

The Group and Parent Company accounts include the assets and related liabilities of the Greggs Employee Benefit Trust (EBT). In both the Group
129 and Parent Company accounts the treasury shares held by the EBT are stated at cost and deducted from total equity.

(p) Employee benefits
(i) Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the
Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation
can be measured reliably.
(ii) Defined contribution plans

Obligations for contributions to defined contribution pension plans are recognised as an expense in the income statement when they are due.
(iii) Defined benefit plans

The Company’s net obligation in respect of defined benefit pension plans is calculated by estimating the amount of future benefit that employees
have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair
value of any plan assets (at bid price) is deducted. The Company determines the net interest on the net defined benefit asset/liability for the
period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined
benefit asset/liability.
The discount rate is the yield at the reporting date on bonds that have a credit rating of at least AA, that have maturity dates approximating to
the terms of the Company’s obligations and that are denominated in the currency in which the benefits are expected to be paid.
Remeasurements arising from defined benefit plans comprise actuarial gains and losses and the return on plan assets (excluding interest).
The Company recognises them immediately in other comprehensive income and all other expenses related to defined benefit plans in employee
benefit expenses in the income statement.
When the benefits of a plan are changed, or when a plan is curtailed, the portion of the changed benefit related to past service by employees,
or the gain or loss on curtailment, is recognised immediately in profit or loss when the plan amendment or curtailment occurs.
The calculation of the defined benefit obligation is performed by a qualified actuary using the projected unit credit method. When the calculation
results in a benefit to the Company, the recognised asset is limited to the present value of benefits available in the form of any future refunds
from the plan or reductions in future contributions and takes into account the adverse effect of any minimum funding requirements.

(iv) Share-based payment transactions
The share option programme allows Group employees to acquire shares of the Company. The fair value of share options granted is recognised as
an employee expense with a corresponding increase in equity. The fair value is measured at grant date, using an appropriate model, taking into
Greggs plc
account the terms and conditions upon which the share options were granted, and is spread over the period during which the employees become
unconditionally entitled to the options. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest
except where forfeiture is only due to share prices not achieving the threshold for vesting.
130

(p) Employee benefits continued
(v) Termination benefits
Termination benefits are expensed at the earlier of the date at which the Group can no longer withdraw the offer of these benefits and the date at
which the Group recognises costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the reporting date they
are discounted.
(q) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably,
and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the
liability.
(i) Restructuring
A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring either
has commenced or has been announced publicly. Future operating costs are not provided for.
(ii) Onerous contracts

Provisions for onerous contracts are recognised when the Group believes that the unavoidable costs of meeting the contract obligations exceed
the economic benefits expected to be received under the contract. At this point and before a provision is established the Group recognises any
impairment loss on the associated assets.
(iii) Dilapidations
The Group provides for property dilapidations, where appropriate, based on the future expected repair costs required to restore the Group’s
leased buildings to their fair condition at the end of their respective lease terms, where it is considered a reliable estimate can be made.
(r) Revenue
(i) Retail sales
Revenue from the sale of goods is recognised as income on receipt of cash or card payment. Revenue is measured net of discounts, promotions
and value added taxation. Revenue from delivery services is included in retail sales and recognised on delivery.

(ii) Franchise sales
Franchise sales are recognised when goods are delivered to franchisees. Additional franchise royalty fee income, generally calculated as
a percentage of gross sales income, is recognised in line with the franchisees’ product sales in accordance with the relevant agreement.
Greggs plc
Pre-opening capital fit-out costs are recharged to the franchisee and represent a key performance obligation of the overall franchise sales
agreement. These recharges are recognised as income on completion of the related fit-out. Sales are invoiced to customers in credit terms
of less than three months.
131

(r) Revenue continued
(iii) Wholesale sales
Wholesale sales are recognised when goods are delivered to customers. Separate disclosure of wholesale sales is not made where the
information disclosed would be commercially sensitive, e.g. if there is a single wholesale customer. Sales are invoiced to customers in credit
terms of less than three months.
(iv) Loyalty programme/gift cards

Amounts received for gift cards or as part of the loyalty programme are deferred. They are recognised as revenue when the Group has fulfilled
its obligation to supply products under the terms of the programme or when it is no longer probable that these amounts will be redeemed. Where
customers are entitled to a free product after a set number of purchases under the loyalty programme, a proportion of the consideration
received is deferred so that the revenue is recognised evenly across all of the linked transactions.
The nature, timing and uncertainty of revenues arising from the above transaction types do not differ significantly from each other.
(s) Government grants

Government grants are recognised in the balance sheet initially as deferred income when there is a reasonable assurance that they will be
received and that the Group will comply with the conditions attaching to them. Grants that compensate the Group for expenses incurred are
recognised net of the related expenses in the income statement on a systematic basis in the same periods in which the expenses are incurred.
Grants that compensate the Group for the cost of an asset are recognised in the income statement over the useful life of the asset.
(t) Finance income and expense

Interest income or expense is recognised using the effective interest method.
(u) Income tax

Income tax comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items
recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable profit for the year, using tax rates enacted or substantively enacted at the balance sheet
date, and any adjustment to tax payable in respect of previous years. The amount of current tax payable is the best estimate of the tax amount

expected to be paid that reflects uncertainty related to income taxes, if any. Taxable profit differs from profit as reported in the income
statement because some items of income or expense are taxable or deductible in different years or may never be taxable or deductible.
Greggs plc
132

(u) Income tax continued
Deferred tax is the tax expected to be payable or recoverable in the future arising from temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used in the calculation of taxable profit. It is accounted for using the
balance sheet liability method. The amount of deferred tax recognised is based on the expected manner of realisation or settlement of the
carrying amounts of assets and liabilities, using tax rates that are expected to apply when the temporary differences reverse, based on rates
enacted or substantively enacted at the balance sheet date. When the recovery of the carrying amount of an asset gives rise to multiple tax
consequences which are not subject to the same income tax laws, separate temporary differences are identified, and the deferred tax on these
is accounted for separately, including assessment of the recoverability of any deferred tax assets that arise.
Deferred tax is not recognised for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not
a business combination and that affects neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the
extent that it is probable that they will not reverse in the foreseeable future.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can
be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
deferred tax benefit will be realised.
(v) Research and development

The Company continuously strives to improve its products and processes through technical and other innovation. Such expenditure is typically
expensed to the income statement when the related intellectual property is not capable of being formalised or capitalised within
intangible assets.
(w) IFRSs available for early adoption not yet applied

The following amendments to standards which will be relevant to the Group were available for early adoption but have not been applied in
these accounts:
–– Amendments to IFRS 9, IAS 39, IFRS 7 and IFRS 16: Interest Rate Benchmark Reform – Phase 2 (effective date 1 January 2021).
Their adoption is not expected to have a material effect on the accounts.

Greggs plc
133
1. Segmental analysis

The Board is considered to be the ‘chief operating decision-maker’ of the Group in the context of the IFRS 8 definition. In addition to its
company‑managed retail activities, the Group generates revenues from its business to business (‘B2B’) channel which includes franchise and
wholesale activities. With the reduction in the level of company-managed retail activities during 2020 both channels are now categorised as
reportable segments for the purposes of IFRS 8.
Company-managed retail activities – the Group sells a consistent range of fresh bakery goods, sandwiches and drinks in its own shops or via
delivery channels. Sales are made to the general public on a cash basis. All results arise in the UK.
B2B channel – the Group sells products to franchise and wholesale partners for sale in their own outlets as well as charging a licence fee to
franchise partners. These sales and fees are invoiced to the partners on a credit basis. All results arise in the UK.
In the current year the Board has regularly reviewed the revenues of each segment separately. A review of trading profit for each segment was
not possible as there was no basis on which meaningfully to allocate costs during the period when the company-managed shops were closed.
The Board receives information on overheads, assets and liabilities on an aggregated basis consistent with the Group accounts.
2020 2019
Retail Retail
company- company-
managed 2020 2020 managed 2019 2019
shops B2B Total shops B2B Total
£m £m £m £m £m £m
Revenue 715.3 96.0 811.3 1,073.8 94.1 1,167.9

Trading profit* 66.4 205.2
Overheads including profit share (73.4) (90.4)
Operating (loss)/profit (7.0) 114.8
Finance expense (6.7) (6.5)
(Loss)/profit before tax (13.7) 108.3
* Trading profit is defined as gross profit less supply chain costs and retail costs (including property costs) and before central overheads.
2. Financial risk management

Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations.
Retail sales represent a large proportion of the Group’s sales and present no credit risk as they are made for cash or card payments. The Group
does offer credit terms on sales to its wholesale and franchise customers. In such cases the Group operates effective credit control procedures
Greggs plc
in order to minimise exposure to overdue debts.
Counterparty risk is also considered low. All of the Group’s surplus cash is held with highly-rated banks, in line with Group policy.
134
2. Financial risk management continued

Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group operates with net current liabilities and is therefore reliant on the continued strong performance of the retail portfolio to meet its
short-term liabilities. Short and medium-term cash forecasting is used to manage liquidity risk. These forecasts are used to ensure the Group
has sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions.
During the year the Group accessed liquidity under the Covid Corporate Financing Facility (‘CCFF’) at a favourable rate of interest.
The borrowings were repaid in December 2020 and the related costs have been charged to finance costs.
The Group also arranged a £100 million syndicated revolving credit facility which matures in December 2023 with options to extend for up to two
years. This facility was undrawn at 2 January 2021. For the first up to twelve months of the facility the covenants in place comprise: monthly net
borrowings do not exceed £70 million; and liquidity is maintained above a minimum of £30 million. Thereafter the covenants comprise: leverage
(calculated as the ratio of net borrowings to EBITDA) does not exceed 3:1; and fixed charge cover (calculated as the ratio of EBITDA to net rent
and interest payable) cannot be below 1.75:1.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s
income or the value of its holdings of financial instruments.
Market risk is not significant and therefore sensitivity analysis would not be meaningful.
Currency risk
The Group has no regular material transactions in foreign currency although there are occasional purchases, mainly of capital items,
denominated in foreign currency. Whilst certain costs such as electricity and wheat can be influenced by movements in the US dollar, actual
contracts are priced in sterling. In respect of those key costs which are volatile, such as electricity and flour, the price may be fixed for a period
of time in line with Group policy. All such contracts are for the Group’s own expected usage.
Interest rate risk

Interest rate risk is the risk that movement in the interbank offered rates increase causing finance costs to increase. The Group’s interest rate
risk arises from its revolving credit facility. Whilst the facility remains undrawn increases in the interest rate will not impact on finance costs.
Equity price risk

Greggs plc
The Group has no significant equity investments other than its subsidiaries and associate. As disclosed in Note 21 the Group’s defined benefit
pension scheme has investments in equity-related funds.
135

Capital management
The Group’s capital management objectives are:
–– To ensure the Group’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other
stakeholders; and
–– To provide an adequate return to shareholders by pricing products and delivering services commensurate with the level of risk.
To meet these objectives the Group reviews the budgets and forecasts on a regular basis to ensure there is sufficient capital to meet the needs
of the Group through to profitability and positive cashflow.
The capital structure of the Group consists of shareholders’ equity as set out in the consolidated statement of changes in equity. All working
capital requirements are financed from existing cash resources and borrowings.
The Board reserves the option to purchase its own shares in the market dependent on market prices and surplus cash levels. The trustees of
the Greggs Employee Benefit Trust also purchase shares for future satisfaction of employee share options.
Financial instruments
Group and Parent Company
All of the Group’s surplus cash is invested as cash placed on deposit or fixed-term deposits.
The Group’s treasury policy has as its principal objective the achievement of the maximum rate of return on cash balances whilst maintaining
an acceptable level of risk. Other than mentioned below there are no financial instruments, derivatives or commodity contracts used.
Financial assets and liabilities

A financial asset is measured at amortised cost if it meets both of the following conditions:
–– it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
–– its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

The Group’s main financial assets comprise cash and cash equivalents and fixed-term deposits. Other financial assets include trade receivables
arising from the Group’s activities. These financial assets all meet the conditions to be recognised at amortised cost.
Greggs plc
Other than trade and other payables, the Group had no financial liabilities within the scope of IFRS 9 as at 2 January 2021 (2019: £nil).
136

Financial instruments continued
Fair values
The fair value of the Group’s financial assets and liabilities is not materially different from their carrying values. Financial assets and liabilities
comprise principally of trade receivables and trade payables and the only interest-bearing balances are the bank deposits and borrowings which
attract interest at variable rates.
Interest rate, credit and foreign currency risk

The Group has not entered into any hedging transactions during the year and considers interest rate, credit and foreign currency risks not to
be significant.
3. Profit before tax

Loss / profit before tax is stated after charging / (crediting):
2020 2019
£m £m
Amortisation of intangible assets 4.0 3.8

Depreciation of owned property, plant and equipment 56.9 56.1
Depreciation of right-of-use assets 51.9 50.6
Impairment of owned property, plant and equipment 5.2 0.3
Impairment of right-of-use assets 8.8 0.5
Loss on disposal of fixed assets 0.4 1.2
Release of government grants (0.5) (0.5)
Research and development expenditure – 0.3
Auditor’s remuneration for the audit of these accounts amounted to £193,000 (2019: £165,000) and for other assurance services £15,000
(2019: £15,000). Amounts paid to the Company’s auditor in respect of services to the Company, other than the audit of the Company’s accounts,
have not been disclosed as the information is required instead to be presented on a consolidated basis.
In addition, the Group received £87 million under the Coronavirus Job Retention Scheme (‘CJRS’) to support employment. This has been credited
to the income statement to offset the related employment costs. A further income statement saving of £18.8 million was made following the

suspension of business rates from April 2020.
Greggs plc
137
4. Exceptional items

2020 2019
£m £m
Cost of sales
Supply chain restructuring
– redundancy 0.1 0.7
– depreciation and asset write-off – 0.1
– transfer of operations 0.7 5.0
– property-related – 0.1
Total exceptional items 0.8 5.9
Supply chain restructuring

This charge arises from the decisions, announced in 2016 and 2017, to invest in and reshape the Company’s supply chain in order to support
future growth. In 2020 and 2019 the costs related to accelerated depreciation and the expenses incurred as a result of further consolidation of
manufacturing into dedicated centres of excellence, including additional running costs. This programme of investment is due to be completed
in 2021.
5. Personnel expenses
The average number of persons employed by the Group (including Directors) during the year was as follows:
2020 2019
Number Number
Management 681 702

Administration 361 368
Production 3,026 2,994
Shop 20,276 19,641
24,344 23,705
The aggregate costs of these persons were as follows:

2020 2019

Note £m £m
Wages and salaries 363.5 357.8

Compulsory social security contributions 26.2 25.5
Pension costs – defined contribution plans 21 24.9 22.6
Greggs plc
Equity-settled transactions (including employer’s NI costs) 21 0.2 6.5

414.8 412.4
138
5. Personnel expenses continued

In addition to wages and salaries, the total amount accrued under the Group’s employee profit sharing scheme is contained within the main cost
categories as follows:
2020 2019
£m £m
Cost of sales – 3.3

Distribution and selling costs – 7.9
Administrative expenses – 1.6
– 12.8
For the purposes of IAS 24 ‘Related Party Disclosures’, key management personnel comprises the Directors and the members of the Operating
Board and their remuneration was as follows:
2020 2019
£m £m
Salaries and fees 2.7 2.9

Taxable benefits 0.1 0.1
Annual bonus (including profit share) – 2.3
Post-retirement benefits 0.3 0.4
Equity-settled transactions 0.2 3.0
3.3 8.7
The following amounts are disclosed in accordance with Schedule 5 of the Large and Medium-Sized Companies and Groups (Accounts and Reports)
Regulations 2008.
2020 2019
£m £m
Aggregate Directors’ remuneration 2.4 2.1

Aggregate amount of gains on exercise of share options – 1.0
2.4 3.1

The number of Directors in the defined contribution pension scheme and in the defined benefit pension scheme during the year was one (2019: one).
Greggs plc
139
6. Finance expense

2020 2019
Note £m £m
Interest income on cash balances 0.4 0.5

Interest expense on borrowings (0.8) –
Foreign exchange gain / (loss) 0.2 (0.2)
Interest on lease liabilities (6.5) (6.6)
Net interest related to defined benefit pension obligation 21 – (0.2)
(6.7) (6.5)
7. Profit attributable to Greggs plc

Of the Group loss for the year, £12.9 million (2019: £87.0 million profit) is dealt with in the accounts of the Parent Company. The Company has
taken advantage of the exemption permitted by s408 of the Companies Act 2006 from presenting its own income statement.
8. Income tax expense

Recognised in the income statement
2020 2019
£m £m
Current tax
Current year (0.6) 22.2
Adjustment for prior years (0.6) (0.1)
(1.2) 22.1
Deferred tax
Origination and reversal of temporary differences 0.4 (0.2)
Adjustment for prior years 0.1 (0.6)
0.5 (0.8)
Total income tax expense in income statement (0.7) 21.3

Greggs plc
140
8. Income tax expense continued

Reconciliation of effective tax rate
The table below explains the differences between the expected tax expense calculated at the UK statutory rate of 19 per cent (2019: 19 per cent)
and the actual tax expense for each year.
2020 2019
2020 £m 2019 £m
(Loss)/profit before tax (13.7) 108.3

Income tax using the domestic corporation tax rate 19.00% (2.6) 19.00% 20.6
Items not (taxable) / deductible for tax purposes (2.35%) 0.3 (0.18%) (0.2)
Non-tax-deductible depreciation (9.39%) 1.3 1.48% 1.6
Impairment of non-tax-deductible assets (0.99%) 0.1 – –
Impact of increase in deferred tax rate (4.92%) 0.7 – –
Adjustment for prior years 3.49% (0.5) (0.63%) (0.7)
Total income tax expense in income statement 5.23% (0.7) 19.67% 21.3
Legislation to maintain the rate of corporation tax at 19 per cent was substantively enacted on 17 March 2020, cancelling the previously enacted
reduction to 17 per cent. Any timing differences are therefore expected to reverse at 19 per cent.
Tax recognised in other comprehensive income or directly in equity

2020 2020 2020 2019
Current tax Deferred tax Total Total
£m £m £m £m
Debit / (credit):
Relating to equity-settled transactions – 1.5 1.5 (2.8)
Relating to defined benefit pension plans – remeasurement gains – (2.1) (2.1) 0.5
– (0.6) (0.6) (2.3)
The deferred tax movements in both the current and prior years relating to equity-settled transactions are in respect of share-based payments
and arise as a result of fluctuations in share price in the year and the stage of maturity of existing schemes together with the revaluation impact
of the deferred tax previously recognised directly in equity.

Greggs plc
141
9. Earnings per share

Basic (loss)/earnings per share
Basic earnings per share for the 53 weeks ended 2 January 2021 is calculated by dividing (loss)/profit attributable to ordinary shareholders
by the weighted average number of ordinary shares in issue during the 53 weeks ended 2 January 2021 as calculated below.
Diluted (loss)/earnings per share

There are no potential ordinary shares in the current year that are considered to be dilutive. The number of potential ordinary shares that could
be dilutive in future years is 915,989.
(Loss)/profit attributable to ordinary shareholders

2020 2019
£m £m
(Loss)/profit for the financial year attributable to equity holders of the Parent (13.0) 87.0
Basic (loss)/earnings per share (12.9p) 86.2p
Diluted (loss)/earnings per share (12.9p) 85.0p
Weighted average number of ordinary shares

2020 2019
Number Number
Issued ordinary shares at start of year 101,155,901 101,155,901

Effect of own shares held (302,104) (342,748)
Effect of shares issued 113,334 –
Weighted average number of ordinary shares during the year 100,967,131 100,813,153
Effect of share options in issue – 1,505,456
Weighted average number of ordinary shares (diluted) during the year 100,967,131 102,318,609

Greggs plc
142
10. Intangible assets

Assets under
Software development Total
£m £m £m
Cost
Balance at 30 December 2018 23.8 2.9 26.7
Additions 2.5 1.2 3.7
Transfers 2.6 (2.6) –
Additions 2.7 0.1 2.8
Transfers 1.5 (1.5) –
Balance at 2 January 2021 33.1 0.1 33.2
Amortisation
Balance at 30 December 2018 9.8 – 9.8
Amortisation charge for the year 3.8 – 3.8
Amortisation charge for the year 4.0 – 4.0
Balance at 2 January 2021 17.6 – 17.6
Carrying amounts
At 29 December 2018 14.0 2.9 16.9
At 28 December 2019 15.3 1.5 16.8
At 29 December 2019 15.3 1.5 16.8
At 2 January 2021 15.5 0.1 15.6
Assets under development relate to software projects arising from the investment in new systems platforms.

Greggs plc
143
11. Leases

Amounts recognised in the balance sheets
The balance sheets show the following amounts relating to leases:

2020 2019
£m £m
Right-of-use assets
Land and buildings 267.8 269.4
Plant and equipment 2.3 3.3
270.1 272.7
2020 2019
£m £m
Lease liabilities
Current 48.6 48.8
Non-current 243.1 226.9
291.7 275.7
The remaining maturities of the lease liabilities, which are gross and undiscounted, are as follows:
2020 2019
£m £m
Less than one year 54.4 51.0

One to two years 49.3 48.5
Two to three years 43.6 42.5
Three to four years 39.2 35.8
Four to five years 34.2 31.9
More than five years 94.9 94.6
Total undiscounted lease liability 315.5 304.3

Additions to right-of-use assets during the 53 weeks ended 2 January 2021 as a result of entering in to new leases (either as a result of acquiring
new shops or completing lease renewals for existing shops) were £26.2 million (2019: £45.5 million).
A further net increase of £31.9 million to right-of-use assets has been recognised during the 53 weeks ended 2 January 2021 as a result of lease
Greggs plc
modifications and assumptions relating to lease term once a lease has expired (2019: £12.6 million).
144
11. Leases continued

Amounts recognised in the income statement
2020 2019
£m £m
Depreciation charge on right-of-use assets

Land and buildings 50.2 48.9
Plant and equipment 1.7 1.9
51.9 50.8
Interest expense (included in finance cost) 6.5 6.6
Expense included for short-term leases (included in cost of sales and administrative expenses) 0.2 0.2
Expense related to lease of low-value assets that are not shown above as short-term leases (included in
administrative expenses) 0.2 0.2
Expense related to variable lease payments not included in lease liabilities (included in selling and distribution) 0.6 2.2
The total cash outflow for leases in 2020 was £48.6 million (2019: £56.2 million).
The components of the movement in the total lease liability were as follows:
2020
£m
Opening total liability 275.7

Additions in respect of new leases 26.2
Lease modifications 31.9
Interest on lease liabilities 6.5
Rental payments (48.6)
Closing total liability 291.7

Greggs plc
145
12. Property, plant and equipment

Group
Land and Plant and Fixtures Assets under
buildings equipment and fittings construction Total
£m £m £m £m £m
Cost
Balance at 30 December 2018 153.1 154.9 321.1 2.0 631.1
Additions 12.2 28.1 36.0 6.0 82.3
Disposals (0.6) (14.9) (19.3) – (34.8)
Transfers 1.6 0.5 – (2.1) –
Additions 3.3 10.1 19.6 22.9 55.9
Disposals (0.7) (8.1) (8.7) – (17.5)
Transfers – 1.9 – (1.9) –
Depreciation
Balance at 30 December 2018 44.1 89.9 166.7 – 300.7
Depreciation charge for the year 4.6 13.3 38.2 – 56.1
Impairment charge for the year – 0.5 0.4 – 0.9
Impairment release for the year – – (0.6) – (0.6)
Disposals (0.5) (14.4) (17.3) – (32.2)
Impairment charge for the year – – 5.9 – 5.9
Disposals (0.3) (7.4) (7.5) – (15.2)
Balance at 2 January 2021 52.8 96.2 222.7 – 371.7
Carrying amounts

At 30 December 2018 109.0 65.0 154.4 2.0 330.4
At 28 December 2019 118.1 79.3 150.4 5.9 353.7
At 29 December 2019 118.1 79.3 150.4 5.9 353.7
At 2 January 2021 116.1 76.3 126.0 26.9 345.3
Greggs plc
Assets under construction relate to the building of an automated cold storage facility and the value of the assets will be recovered through the
normal course of trade.
146
12. Property, plant and equipment continued

Group continued
Assets are reviewed for impairment if events or changes in circumstances indicate that the carrying value may not be recoverable and provision
is made where necessary. The method and assumptions used in these calculations, together with the associated sensitivities, are set out in the
basis of preparation – key estimates and judgements on page 123 and 124.
During 2018, the Company exchanged contracts for the disposal of the vacant Twickenham site. The disposal is conditional on a number of
factors, including the applications for and successful grant of planning permission. As at the end of 2020 the timing of the resolution of these
factors remains uncertain and therefore this asset continues to be classified as non-current. At this stage the total proceeds arising from supply
chain site disposals are still expected to be in line with those anticipated in the investment plan.

Greggs plc
147

Parent Company
Land and Plant and Fixtures Assets under
buildings equipment and fittings construction Total
£m £m £m £m £m
Cost
Additions 12.2 28.1 36.0 6.0 82.3
Disposals (0.6) (14.9) (19.3) – (34.8)
Transfers 1.6 0.5 – (2.1) –
Additions 3.3 10.1 19.6 22.9 55.9
Disposals (0.7) (8.1) (8.7) – (17.5)
Transfers – 1.9 – (1.9) –
Depreciation
Impairment charge for the year – 0.5 0.4 – 0.9
Disposals (0.5) (14.4) (17.3) – (32.2)
Impairment charge for the year – – 5.9 – 5.9
Disposals (0.3) (7.4) (7.5) – (15.2)
Balance at 2 January 2021 53.1 96.4 223.1 – 372.6
Carrying amounts

At 30 December 2018 109.2 65.3 154.5 2.0 331.0
At 28 December 2019 118.3 79.6 150.5 5.9 354.3
At 29 December 2019 118.3 79.6 150.5 5.9 354.3
At 2 January 2021 116.3 76.6 126.1 26.9 345.9
Greggs plc
148

Land and buildings
The carrying amount of land and buildings comprises:
2020 2019 2020 2019
£m £m £m £m
Freehold property 115.1 116.9 115.3 117.1

Short leasehold property 1.0 1.2 1.0 1.2
116.1 118.1 116.3 118.3
13. Investments
Non–current investments
Parent Company
Shares in subsidiary
undertakings
£m
Cost
Balance at 30 December 2018, 29 December 2019 and 2 January 2021 5.8
Impairment
Balance at 30 December 2018, 29 December 2019 and 2 January 2021 0.8
Carrying amount
Balance at 30 December 2018, 28 December 2019, 29 December 2019 and 2 January 2021 5.0

Greggs plc
149
13. Investments continued

Non–current investments continued
The undertakings in which the Company’s interest at the year end is more than 20 per cent are as follows:
Proportion of
Address of voting rights and
Principal activity registered office shares held
Charles Bragg (Bakers) Limited Non-trading 1 100%

Greggs (Leasing) Limited Dormant 1 100%
Thurston Parfitt Limited Non-trading 1 100%
Greggs Properties Limited Property holding 1 100%
Olivers (U.K.) Limited Dormant 2 100%
Olivers (U.K.) Development Limited* Non-trading 2 100%
Birketts Holdings Limited Dormant 1 100%
J.R. Birkett and Sons Limited* Non-trading 1 100%
Greggs Trustees Limited Trustees 1 100%
Solstice Zone A Management Company Limited Non-trading 3 28%
* held indirectly
1 Greggs House 2 Clydesmill Bakery 3 The Abbey

Quorum Business Park 75 Westburn Drive Preston Road
Newcastle upon Tyne Clydesmill Estate Yeovil
NE12 8BU Cambuslang Somerset
Glasgow BA20 2EN
G72 7NA
Solstice Zone A Management Company Limited was not consolidated on the grounds of materiality.
The Company’s subsidiary undertakings listed above were all entitled to exemption, under subsections (1) and (2) of s480 of Companies Act 2006
relating to dormant companies, from the requirement to have their accounts audited.

Greggs plc
150
14. Deferred tax assets and liabilities

Group
Deferred tax assets and liabilities are attributable to the following:
Assets Liabilities Net
2019 2019
2020 2019 2020 Restated* 2020 Restated*
£m £m £m £m £m £m
Property, plant and equipment – – (8.3) (8.5) (8.3) (8.5)

Employee benefits 5.5 5.4 – – 5.5 5.4
Short-term temporary differences 0.5 0.7 – – 0.5 0.7
Tax assets / (liabilities) 6.0 6.1 (8.3) (8.5) (2.3) (2.4)
* Due to a change in accounting policy, there has been a prior year restatement of deferred tax balances. Further details of this change and its impact are given in the Basis of preparation on page 121.
As a result of this change in accounting policy the Group has a deferred tax asset of £5.7 million that is unrecognised at 2 January 2021 (28 December 2019: £5.7 million).
The movements in temporary differences during the 52 weeks ended 28 December 2019 were as follows:
Balance at Balance at
30 December 2018 Recognised Recognised 28 December 2019
Restated in income in equity Restated
£m £m £m £m
Property, plant and equipment (8.9) 0.4 – (8.5)

Employee benefits 3.2 (0.1) 2.3 5.4
Short-term temporary differences 0.2 0.5 – 0.7
(5.5) 0.8 2.3 (2.4)
The movements in temporary differences during the 53 weeks ended 2 January 2021 were as follows:
Balance at
29 December 2019 Recognised Recognised Balance at
Restated in income in equity 2 January 2021
£m £m £m £m


Short-term temporary differences 0.7 (0.2) – 0.5
(2.4) (0.5) 0.6 (2.3)
Greggs plc
151
14. Deferred tax assets and liabilities continued

Parent Company
Deferred tax assets and liabilities are attributable to the following:
Assets Liabilities Net
2019 2019
2020 2019 2020 Restated 2020 Restated
£m £m £m £m £m £m
Property, plant and equipment – – (7.8) (8.1) (7.8) (8.1)

Employee benefits 5.5 5.4 – – 5.5 5.4
Short-term temporary differences 0.5 0.7 – – 0.5 0.7
Tax assets / (liabilities) 6.0 6.1 (7.8) (8.1) (1.8) (2.0)
The movements in temporary differences during the 52 weeks ended 28 December 2019 were as follows:
Balance at Balance at
30 December 2018 Recognised Recognised 28 December 2019
Restated in income in equity Restated
£m £m £m £m

Short-term temporary differences 0.2 0.5 – 0.7
(5.1) 0.8 2.3 (2.0)
The movements in temporary differences during the 53 weeks ended 2 January 2021 were as follows:
Balance at
29 December 2019 Recognised Recognised Balance at
Restated in income in equity 2 January 2021
£m £m £m £m

Short-term temporary differences 0.7 (0.2) – 0.5
(2.0) (0.4) 0.6 (1.8)

Greggs plc
152
15. Inventories

2020 2019
£m £m
Raw materials and consumables 13.3 19.4

Work in progress 9.2 4.5
22.5 23.9
The write-down of inventories that was recognised as an expense in the period was £34.9 million (2019: £33.9 million).
16. Trade and other receivables

2020 2019
£m £m
Trade receivables 22.0 15.8

Other receivables 11.4 6.0
Prepayments 6.0 5.3
39.4 27.1
At 2 January 2021 the allowance for bad debts was immaterial. Expected credit losses (‘ECLs’) on financial assets are not material.
The ageing of trade receivables that were not impaired at the balance sheet date was:

2020 2019
£m £m
Not past due date 17.3 14.5

Past due 1-30 days 3.9 1.1
Past due 31-90 days 0.7 0.2
Past due over 90 days 0.1 –
22.0 15.8

The Group believes that all amounts that are past due by more than 30 days that have an immaterial allowance for ECLs are still collectable in full
based on historic payment behaviour and extensive analysis of customer credit risk. Based on the Group’s monitoring of customer credit risk,
Greggs plc
the Group believes that no significant allowance for ECLs is necessary in respect of trade receivables not past due.
153
17. Cash and cash equivalents

2020 2019
£m £m
Cash and cash equivalents 36.8 91.3
18. Trade and other payables

2020 2019 2020 2019
£m £m £m £m
Trade payables 48.8 66.7 48.8 66.7

Amounts owed to subsidiary undertakings – – 7.7 7.7
Other taxes and social security 6.8 8.9 6.8 8.9
Other payables 17.4 31.9 17.4 31.9
Accruals 15.1 32.0 15.1 32.0
Advance payments from customers 2.5 2.3 2.5 2.3
Deferred government grants 0.5 0.5 0.5 0.5
91.1 142.3 98.8 150.0
In 2019 accruals and other payables included accruals of £27.0 million for performance-related remuneration. There are no similar accruals
in 2020.
19. Current tax liability

The current tax liability of £0.0 million in the Group and the Parent Company (2019: Group and Parent Company £11.8 million) represents the
estimated amount of income taxes payable in respect of current and prior years.
20. Non-current liabilities – other payables

2020 2019

£m £m
Deferred government grants 3.7 4.2
The Group has been awarded five government grants relating to the extension of existing facilities and construction of new facilities. The grants,
Greggs plc
which have all been recognised as deferred income, are being amortised over the weighted average of the useful lives of the assets they have
been used to acquire.
154
21. Employee benefits

Defined benefit pension plan
Scheme background
The Company sponsors a funded final salary defined benefit pension plan (the ‘scheme’) for qualifying employees. The scheme was closed
to future accrual in 2008 and all remaining employees who are still members of the scheme are now members of the Company’s defined
contribution scheme.
The scheme is administered by a separate Board of Trustees which is legally separate from the Company. The Trustees are composed of
representatives of both the employer and employees. The Trustees are required by law to act in the interest of all relevant beneficiaries and
are responsible for the investment policy with regard to the assets plus the day-to-day administration of the benefits.
UK legislation requires that pension schemes are funded prudently. The last funding valuation of the Scheme was carried out by a qualified
actuary as at 6 April 2017 and showed a surplus. The Company is currently not required to pay contributions into the scheme.
Profile of the scheme

The defined benefit pension obligation includes benefits for former employees and current pensioners. Broadly, two-thirds of the liabilities
are attributable to deferred members and one-third to current pensioners.
The scheme duration is an indicator of the weighted average time until benefit payments are made. For the scheme as a whole, the duration
is approximately 18 years.
Investment strategy
The Company and Trustees have agreed a long-term strategy for reducing investment risk as and when appropriate. This includes a policy to hold
sufficient cash and bond assets to cover the anticipated benefit payments for at least the next five years so as to improve the cashflow matching
of the scheme’s assets and liabilities.

2020 2019
£m £m
Defined benefit obligation (143.4) (127.6)

Fair value of plan assets 131.5 127.0

Net defined benefit pension liability (11.9) (0.6)
Greggs plc
155
21. Employee benefits continued

Defined benefit pension plan continued
Liability for defined benefit pension obligations
Changes in the present value of the defined benefit pension obligation are as follows:

2020 2019
£m £m
Opening defined benefit pension obligation 127.6 113.5

Past service costs 0.1 –
Interest cost 2.5 3.1
Remeasurement (gains) / losses:
– changes in mortality assumptions 1.1 (0.9)
– changes in financial assumptions 19.2 15.5
– experience (3.4) –
Benefits paid (3.7) (3.6)
Closing defined benefit pension obligation 143.4 127.6
Changes in the fair value of plan assets are as follows:

2020 2019
£m £m
Opening fair value of plan assets 127.0 105.1

Net interest on plan assets 2.5 2.9
Remeasurement gains 5.7 17.6
Company special contribution – 5.0
Benefits paid (3.7) (3.6)
Closing fair value of plan assets 131.5 127.0
The costs charged in the income statement are as follows:

Group
2020 2019
£m £m
Interest expense on net defined benefit pension liability – 0.2

Greggs plc
156

The amounts recognised in other comprehensive income are as follows:
Group
2020 2019
£m £m
Remeasurement (losses) / gains on defined benefit pension plans (11.2) 3.0
Cumulative remeasurement gains and losses reported in the consolidated statement of comprehensive income since 28 December 2003,
the transition date to adopted IFRSs, for the Group and the Parent Company are net losses of £31.3 million (2019: net losses of £20.1 million).
The fair value of the plan assets is as follows:

2020 2019
£m £m
Equities – UK 21.5 46.5

– overseas 50.1 36.7
Bonds – corporate 19.6 12.7
– government 31.8 23.7
Absolute return funds – 1.1
Cash and cash equivalents/other 8.5 6.3
131.5 127.0
Principal actuarial assumptions (expressed as weighted averages):

2020 2019
Discount rate 1.25% 1.95%

Future salary increases n/a n/a
Future pension increases 1.8% – 2.3% 1.7% – 2.45%

Rate of price inflation (RPI) 2.85% 2.95%
Rate of price inflation (CPI) 2.25% 2.05%
Greggs plc
In November 2020 the Government announced that RPI is to be aligned with CPIH (CPI with owner occupiers’ costs) from 2030. As a result the
RPI assumption has been updated along with the assumed future gap between RPI and CPI.
157

Mortality assumption
Mortality in retirement is assumed to be in line with the S2PXA tables using CMI_2019 projections and a long-term rate of 1.25 per cent per annum.
Under these assumptions, pensioners aged 65 now are expected to live for a further 22.2 years (2019: 22.1 years) if they are male and 24.2 years
(2019: 23.7 years) if they are female. Members currently aged 45 are expected to live for a further 23.6 years (2019: 23.5 years) from age 65 if they
are male and for a further 25.7 years (2019: 25.2 years) from age 65 if they are female.
The sensitivities regarding the principal assumptions used to measure the scheme liabilities are set out below:
Change in assumption Impact on scheme liabilities
Discount rate 0.1% increase £2.6 million decrease

Discount rate 0.5% increase £12.9 million decrease
Inflation 0.1% decrease £1.6 million decrease
Inflation 0.5% decrease £8.2 million decrease
Mortality rates 1 year increase £5.3 million increase
If the commutation assumption were to be removed from the valuation the impact would be an increase in the scheme liabilities of £8.0 million.
The other demographic assumptions have been set having regard to latest trends in the scheme.
A triennial valuation of the scheme took place in April 2017. The outcome of that valuation was considered by the Trustees and the Company and
no requirement for future contributions was identified. The 2020 triennial valuation is ongoing.
During 2019 the Company made a special contribution of £5.0 million in support of the strategy adopted by the Trustees to achieve a buy-out of
liabilities within 10 years.

Greggs plc
158

Defined contribution plan
The Company also operates defined contribution schemes for other eligible employees. The assets of the schemes are held separately
from those of the Group. The pension cost represents contributions payable by the Group and amounted to £24.9 million (2019: £22.6 million)
in the year.
Share-based payments – Group and Parent Company

The Group has established a Savings-Related Share Option Scheme, an Executive Share Option Scheme and a Performance Share Plan.
The terms and conditions of the grants for these schemes are as follows, whereby all options are settled by physical delivery of shares:
Exercise Number of shares
Date of grant Employees entitled price granted Vesting conditions Contractual life
Performance Share March 2012 Senior £nil 248,922 Three years’ service, EPS annual 10 years
Plan 3 executives compound growth of 3-8% over RPI
over those three years and TSR
position relative to an appropriate
comparator group
Executive Share Option March 2013 Senior 480p 693,000 Three years’ service and EPS growth 10 years
Scheme 16 employees of 3-7% over RPI on average over those
three years
Plan 4 executives compound growth of 3-8% over RPI
over those three years and TSR
position relative to an appropriate
comparator group
Plan 5 executives compound growth of 1-4% over
RPI over those three years and
average annual ROCE of 15.5-17%
over those three years

Executive Share Option April 2014 Senior 500p 598,225 Three years’ service and EPS growth 10 years
Scheme 17 employees of 1-4% over RPI on average over
those three years
Greggs plc
Scheme 18 employees of 1-7% over RPI on average over

those three years
159

Share-based payments – Group and Parent Company continued
Executive Share Option May 2015 Senior 1056p 3,285 Three years’ service and EPS growth of 10 years
Scheme 18a employee 1-7% over RPI on average over those
three years
Plan 6 executives compound growth of 1-7% over RPI over
those three years and average annual
ROCE of 19-21.5% over those three years
Performance Share March 2016 Senior £nil 133,271 Three years’ service, EPS average 10 years
Plan 7 executives annual growth of 2-8% over RPI over
those three years and average annual
ROCE of 22-27% over those three years
Executive Share Option April 2016 Senior 1088p 235,857 Three years’ service and EPS growth of 10 years
Scheme 19 employees 2-8% over RPI on average over those
three years
Savings-Related Share April 2016 All employees 870p 361,853 Three years’ service 3.5 years
Option Scheme 17
Performance Share May 2017 Senior £nil 206,404 Three years’ service, EPS average 10 years
Plan 8 executives annual growth of 5-11% over those
three years and average annual
Executive Share Option April 2017 Senior 1033p 246,219 Three years’ service and EPS growth 10 years
Scheme 20 employees of 5-11% on average over those
three years
Option Scheme 18
Performance Share March 2018 Senior £nil 190,943 Three years’ service, EPS average 10 years

three years and average annual
Greggs plc
Scheme 21 employees of 5-11% on average over those

three years
160 Option Scheme 19

Performance Share April 2019 Senior £nil 128,534 Three years’ service, EPS average 10 years
three years and average annual ROCE
of 24-28% over those three years
Executive Share Option April 2019 Senior 1830p 140,913 Three years’ service, EPS average 10 years
Scheme 22 employees annual growth of 5-11% over those
three years and average annual ROCE
of 24-28% over those three years
Option Scheme 20
Option Scheme 21
Performance Share October 2020 Senior £nil 166,366 Three years’ service, EPS performance 10 years
Plan 11 executives in 2022, ROCE performance in 2022 and
two strategic objectives
Executive Share Option November Senior 1720p 121,202 Three years’ service, EPS performance 10 years
Scheme 23 2020 employees in 2022, ROCE performance in 2022 and
two strategic objectives
The number and weighted average exercise price of share options is as follows: 2020 2019
Weighted average Weighted average
exercise price Number of options exercise price Number of options
Outstanding at the beginning of the year 781p 2,342,496 690p 2,744,060

Lapsed during the year 1203p (87,654) 870p (200,762)
Exercised during the year 703p (429,086) 697p (700,853)
Granted during the year 1043p 527,211 1200p 500,051

Outstanding at the end of the year 607p 2,352,967 781p 2,342,496
Exercisable at the end of the year 569p 721,628 546p 423,556
Greggs plc
The options outstanding at 2 January 2021 have an exercise price in the range of £nil to £18.30 and have a weighted average contractual life of
5.36 years. The options exercised during the year had a weighted average market value of £17.61 (2019: £20.13).
161

The fair value of services received in return for share options granted is measured by reference to the fair value of share options granted. The
estimate of the fair value of the services received is measured based on the Black-Scholes model for all Savings-Related Share Option Schemes
and Executive Share Option Schemes and for Performance Share Plan options granted from 2014 onwards. The fair value per option granted and
the assumptions used in these calculations are as follows:
2020 2019
Savings-Related Savings-Related
Performance Executive Share Share Option Performance Executive Share Share Option
Share Plan 11 Option Scheme 23 Scheme 21 Share Plan 10 Option Scheme 22 Scheme 20
October 2020 November 2020 April 2020 April 2019 April 2019 April 2019
Fair value at grant date 1325p 493p 519p 1726p 307p 469p
Share price 1407p 1720p 1780p 1830p 1830p 1855p
Exercise price Nil 1720p 1424p Nil 1830p 1484p
Expected volatility 45.81% 48.43% 38.02% 28.06% 28.06% 28.07%
Option life 3 years 3 years 3 years 3 years 3 years 3 years
Expected dividend yield 2.00% 2.00% 2.52% 1.95% 1.95% 1.92%
Risk-free rate (0.05%) (0.04%) 0.12% 0.75% 0.75% 0.64%
The expected volatility is based on historical volatility, adjusted for any expected changes to future volatility due to publicly available information.
The historical volatility is calculated using a weekly rolling share price for the three-year period immediately prior to the option grant date.
The costs charged/(credited) to the income statement relating to share-based payments were as follows:
2020 2019
£m £m
Share options granted in 2016 – 0.3

Share options granted in 2017 0.2 1.9
Share options granted in 2018 (0.2) 1.5
Share options granted in 2019 0.5 0.7
Share options granted in 2020 0.4 –
Total expense recognised as employee costs 0.9 4.4

Greggs plc
162
22. Provisions

2020 2019
2020 National 2020 2020 2020 2019 National 2019 2019 2019
Dilapidations Insurance Redundancy Other Total Dilapidations Insurance Redundancy Other Total
£m £m £m £m £m £m £m £m £m £m
Balance at start of year 2.3 2.3 1.1 1.7 7.4 2.8 0.8 3.5 2.3 9.4
Additional provision in the year:
Ordinary 1.2 – 10.6 2.1 13.9 1.1 2.1 0.8 – 4.0
Exceptional – – 0.2 – 0.2 – – 0.7 – 0.7
Utilised in year:
Ordinary (0.1) (0.2) (9.4) (0.4) (10.1) (0.4) (0.6) (0.5) (0.1) (1.6)
Exceptional – – (0.8) – (0.8) – – (3.4) – (3.4)
Provisions reversed during the year:
Ordinary (0.7) (0.6) (0.7) (1.1) (3.1) (1.0) – – (0.5) (1.5)
Exceptional – – (0.1) – (0.1) (0.2) – – – (0.2)
Balance at end of year 2.7 1.5 0.9 2.3 7.4 2.3 2.3 1.1 1.7 7.4
Included in current liabilities 1.4 1.4 0.7 0.9 4.4 1.5 1.7 1.1 1.5 5.8
Included in non-current liabilities 1.3 0.1 0.2 1.4 3.0 0.8 0.6 – 0.2 1.6
2.7 1.5 0.9 2.3 7.4 2.3 2.3 1.1 1.7 7.4
The provisions at the end of the year relate to ordinary or exceptional activity as follows:
Ordinary 2.5 1.5 0.8 2.1 6.9 2.1 2.3 0.3 1.5 6.2
Exceptional 0.2 – 0.1 0.2 0.5 0.2 – 0.8 0.2 1.2
2.7 1.5 0.9 2.3 7.4 2.3 2.3 1.1 1.7 7.4
Dilapidation provisions have been made based on the future expected repair costs required to restore the Group’s leased buildings to their fair
condition at the end of their respective lease terms, where it is considered a reliable estimate can be made.
National insurance costs are provided in respect of future share options exercises.

Other provisions are largely in respect of onerous costs relating to closed shops where the lease has not yet expired.
Greggs plc
The majority of all of the provisions are expected to be utilised within four years such that the impact of discounting would not be material.
163
23. Capital and reserves

Share capital
Ordinary shares
2020 2019
Number Number
In issue and fully paid at start of year – ordinary shares of 2p 101,155,901 101,155,901
Issued on exercise of share options 270,137 –
In issue and fully paid at the end of year – ordinary shares of 2p 101,426,038 101,155,901
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings
of the Company.
During the year 270,137 shares were issued as a result of the exercise of vested options granted to senior management under the Executive
Share Option Scheme and the exercise of options under the Savings-Related Share Option Scheme. Options were exercised at an average price
of £8.23.
Capital redemption reserve

The capital redemption reserve relates to the nominal value of issued share capital bought back by the Company and cancelled.
Own shares held

Deducted from retained earnings is £39.0 million (2019: £39.9 million) in respect of own shares held by the Greggs Employee Benefit Trust.
The Trust, which was established during 1988 to act as a repository of issued Company shares, holds 227,965 shares (2019: 406,357 shares)
with a market value at 2 January 2021 of £4.1 million (2019: £9.3 million) which have not vested unconditionally in employees. During the year the
Trust purchased 25,600 (2019: 547,713) shares for an aggregate consideration of £0.5 million (2019: £11.8 million) and sold 203,992 (2019: 702,222)
shares for an aggregate consideration of £1.5 million (2019: £4.9 million).
The shares held by the Greggs Employee Benefit Trust can be purchased either by employees on the exercise of an option under the Greggs
Executive Share Option Schemes, Greggs Savings-Related Share Option Scheme and Greggs Performance Share Plan or by the trustees of the
Greggs Employee Share Scheme. The trustees have elected to waive the dividends payable on these shares.

Greggs plc
164
23. Capital and reserves continued

Dividends
The following tables analyse dividends when paid and the year to which they relate:
2020 2019
Per share Per share
pence pence
2018 final dividend – 25.0p

2019 interim dividend – 11.9p
2019 special dividend – 35.0p
2019 final dividend – –
– 71.9p
The final declared dividend of 33.0p in respect of 2019 was cancelled as a cash preservation measure in response to the Covid-19 crisis.
No dividends have been declared in respect of 2020.
2020 2019
£m £m
2018 final dividend – 25.3

2019 interim dividend – 12.0
2019 special dividend – 35.3
2019 final dividend – –
– 72.6
24. Capital commitments

During the 53 weeks ended 2 January 2021, the Group entered into contracts to purchase property, plant and equipment and intangible assets
for £8.5 million (2019: £35.7 million) which are expected to be settled in the following financial year.

Greggs plc
165
25. Related parties

Identity of related parties
The Group has a related-party relationship with its subsidiaries (see Note 13), Directors and executive officers and pension schemes.
Trading transactions with subsidiaries – Group

There have been no transactions between the Company and its subsidiaries or associates during the year (2019: none).
Trading transactions with subsidiaries – Parent Company

Amounts owed to related parties Amounts owed by related parties
2020 2019 2020 2019
£m £m £m £m
Dormant subsidiaries 7.8 7.8 – –
The Greggs Foundation is also a related party and during the year the Company made a donation to the Greggs Foundation of £1.1 million
(2019: £1.3 million), as well as passing on £0.3 million (2019: £0.4 million) raised from the sale of carrier bags and £0.2 million (2019: £0.3 million)
raised from the sale of products. The Greggs Foundation holds 300,000 shares in Greggs plc and Richard Hutton, a Director of Greggs plc, is a
trustee of the Greggs Foundation.
Transactions with key management personnel

Details of Directors’ shareholdings, share options, emoluments, pension benefits and other non-cash benefits can be found in the Directors’
remuneration report on pages 79 to 101. Summary information on remuneration of key management personnel is included in Note 5.

Greggs plc
166
Greggs plc

Ten-year history 2012 2014
2011 (as restated) 2 2013 (as restated) 1,3 20151 2016 2017 2018 20195 2020 1
Turnover (£m) 701.1 734.5 762.4 806.1 835.7 894.2 960.0 1,029.3 1,167.9 811.3
Total sales growth/(decline) 5.8% 4.8% 3.8% 5.7% 3.7% 7.0% 7.4% 7.2% 13.5% (30.5%)
Company-managed shop like-for-like
sales growth/(decline) 1.4% (2.7%) (0.8%) 4.5% 4.7% 4.2% 3.7% 2.9% 9.2% (36.2%)
Profit/(loss) before tax (PBT)
excluding exceptional items (£m) 53.1 50.9 41.3 58.3 73.1 80.3 81.7 89.8 114.2 (12.9)
PBT margin excluding exceptional
items 7.6% 6.9% 5.4% 7.2% 8.7% 9.0% 8.5% 8.7% 9.8% (15.9%)
Pre-tax exceptional credit/(charge)
(£m) 7.4 1.4 (8.1) (8.5) – (5.2) (9.9) (7.2) (5.9) (0.8)
Profit/(loss) on ordinary activities
including exceptional items and
before tax (£m) 60.5 52.4 33.2 49.7 73.0 75.1 71.9 82.6 108.3 (13.7)
Diluted earnings per share excluding
exceptional items (pence) 38.8 38.3 30.6 43.4 55.8 60.8 63.5 70.3 89.7 (12.9)
Dividend per share (pence) 19.3 19.5 19.5 22.0 48.6 4 31.0 32.3 35.7 46.96 –
Total shareholder return 13.0% (6.1%) 0.6% 69.7% 87.1% (23.8%) 47.5% (7.4%) 87.5% (22.0%)
Capital expenditure (£m) 59.1 46.9 47.6 48.9 71.7 80.4 70.4 73.0 86.0 58.7
Return on capital employed (excluding
exceptional items) 24.4% 21.3% 16.4% 22.4% 26.8% 28.1% 26.9% 27.4% 20.0% (2.4%)
Number of shops in operation at
year end 1,571 1,671 1,671 1,650 1,698 1,764 1,854 1,953 2,050 2,078
1 2014 and 2020 were 53 week years, impacting on total sales growth for that year and the year immediately following
2 restated following the adoption of IAS 19 (Revised)
3 restated to include revenue in respect of franchise fit-out costs
4 includes a special dividend of 20.0p paid in 2015.
5 IFRS 16 leases was implemented at the start of the financial year using the modified retrospective approach. Prior year comparatives have not been restated.
6 Includes a special dividend of 35.0p. The final dividend declared in respect of 2019 was cancelled as a cash preservation measure during the Covid-19 crisis

Greggs plc
167
Calculation of alternative performance measures

All of the non-GAAP measures detailed above can be calculated from the GAAP measures included in the annual accounts with the exception
of those detailed below.
Like-for-like (LFL) sales growth – compares year-on-year cash sales in our company-managed shops, with a calendar year’s trading history
and is calculated as follows:
2020 2019
£m £m
Current year LFL sales 665.2 987.8

Prior year LFL sales 1,042.2 904.7
(Decline)/growth (377.0) 83.1
LFL sales (decline)/growth percentage (36.2%) 9.2%
Return on capital employed – calculated by dividing profit before tax by the average total assets less current liabilities for the year.
2019
2019 Including
2020 Underlying exceptional items
£m £m £m
(Loss)/profit before tax (13.7) 114.2 108.3

Capital employed:
Opening 580.1 559.3 559.3
Closing 589.8 580.1 580.1
Average 584.9 569.7 569.7
Return on capital employed (2.3%) 20.0% 19.0%
Net cash inflow from operating activities after lease payments – calculated by deducting the repayment of principle of lease liabilities from net
cash flow from operating activities
2020 2019
£m £m
Net cash inflow from operating activities 43.6 219.1

Repayment of principle of lease liabilities (42.1) (49.6)
Net cash inflow from operating activities after lease payments 1.5 169.5
Greggs plc
168
SECRETARY AND ADVISERS

Secretary Auditors Solicitors
Jonathan D Jowett, LL.M. Solicitor KPMG LLP Muckle LLP
Quayside House Time Central
Registered Office 110 Quayside 32 Gallowgate
Greggs House Newcastle upon Tyne Newcastle upon Tyne
Quorum Business Park NE1 3DX NE1 4BF
Newcastle upon Tyne
NE12 8BU Stockbrokers Linklaters LLP
UBS One Silk Street
Registered number 5 Broadgate Circle London
502851 London EC2Y 8HQ
EC2M 2QS
Bankers Registrars
Barclays Bank plc Investec Link Group
Barclays House 2 Gresham Street 10th Floor
5 St Ann’s Street London Central Square
Quayside EC2V 7QP 29 Wellington Street
Newcastle upon Tyne Leeds
NE1 3DX LS1 4DL
The outer cover of this report has been

laminated with a biodegradable film.
Greggs plc
Around 20 months after composting,

an additive within the film will initiate
the process of oxidation.
169
Greggs plc
Company Registered Number 502851
corporate.greggs.co.uk

Lse GRG 2020

Uploaded by

Copyright:

Available Formats

Lse GRG 2020

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Lse GRG 2020

Uploaded by

Copyright:

Available Formats

20

In a year like no other, Strategic Report

the Covid-19 crisis

Annual Report and Accounts 2020

has, in many ways

strength of Greggs. Gender of workforce 

Continued on the next page

Statements of cashflows 118

1 Secretary and advisers 169

Covid-secure operating Key financial highlights

Annual Report and Accounts 2020

2019: earnings per share 85.0p

Continued on the next page

Detailed calculations of Alternative Performance Measures, not

AT A GLANCE OUR STRATEGIC PILLARS

Annual Report and Accounts 2020

food-on-the-go to all types of people, as they go about

Best customer experience

To make great tasting,

To be the customers’ great tasting, freshly prepared food

favourite for food-on-

Continued on the next page

equip our support teams to provide the best service to

Our sustainability commitments Our culture and values

Annual Report and Accounts 2020

Continued on the next page

Our stakeholders How we measure our performance

Annual Report and Accounts 2020

READ MORE ON PAGES 18-23

CUSTOMERS COLLEAGUES SUPPLIERS

SHAREHOLDERS LENDERS COMMUNITIES

Continued on the next page

Annual Report and Accounts 2020

Continued on the next page

Just Eat at breakneck speed to over

YEAR IN REVIEW CONTINUED

Vegan Victory! October

Annual Report and Accounts 2020

New Shops September

Continued on the next page

7 roll the service out to all company-managed shops in the Autumn.

Annual Report and Accounts 2020

Manufacturing Logistics Customer channels People Customer relationships

What makes us different

Purpose Quality Convenience Value Service

The Greggs Pledge: Dedicated to Doing Good

Continued on the next page

Annual Report and Accounts 2020

Continued on the next page

great support in return.

CHAIRMAN’S STATEMENT CONTINUED

Annual Report and Accounts 2020

Continued on the next page

contribution to company-managed shop sales.

CHAIRMAN’S STATEMENT CONTINUED

Annual Report and Accounts 2020

Dividend Greggs is a great business and we are confident for

Continued on the next page

CHIEF EXECUTIVE’S REPORT

strength of Greggs. Gender of workforce

Statements of cashflows 118

1 Secretary and advisers 169

“Our teams have been