Woolworths Holdings Limited · JSE:WHL
Woolworths — FY2002 Earnings Presentation
17 slides from Woolworths's earnings presentation, August 2002
Slide 1: Presentation to investment analysts
WHL presentation to investment analysts a », . pi) . (a S/F ~wA de 2
Slide 2: Woolworths Holdings Limited highlights
woolworths holdings limited highlights • From continuing operations: - Revenue up 23.9% - Profit before tax and exceptional items up 47.7% • Headline earnings per share: - All operations up 44.3% - Continuing operations up 43.2% • Final dividend per share up 4c to 12,5 cents - Brings total dividend
Slide 3: Woolworths operations highlights
woolworths operations highlights • Sales up 22.6% • Profit before tax and exceptional items up 40.1% • Textiles positioning improving • Foods growing market share • Financial services managed growth • International base for growth established • Sales outperform costs
Slide 4: Country Road Limited highlights
country road limited highlights • From continuing operations: - Sales up 2.9% - Profit before tax A$1.1 (small profit) - Improved design and quality - Clean US exit - Simplified processes and systems - Lower cost base
Slide 5: Income statement – continuing operations
woolworths holdings results income statement – continuing operations June 2002 June 2001 % 53 weeks 52 weeks Change Rm Rm Revenue 8 825,6 7 120,6 23.9 Turnover 8 421,4 6 778,8 24.2 Cost of merchandise 5 571,8 4 484,5 24.2 Gross profit 2 849,6 2 294,3 24.2 Other income 404,2 341,8 18.3 Expenses 2 568
Slide 6: Income statement – all operations
woolworths holdings results income statement – all operations June 2002 June 2001 % 53 weeks 52 weeks Change Rm Rm Net profit from continuing 640,7 433,7 47.7 operations Woolworths 625,5 446,4 40.1 Country Road 15,2 (12,7) - Net profit before tax and 640,7 433,7 47.7 exceptional items Exceptional it
Slide 7: Profit before tax & exceptional items and HEPS (continuing operations)
woolworths holdings results Profit before tax & exceptional items and HEPS (continuing operations*) Cents per share Rm 1,000.0 46,2 50 800.0 40 32,9 32,3 28,6 600.0 25,4 640, 30 7 400.0 433, 20 383, 360, 376, 7 6 6 200.0 0 10 - 0 1998 1999 2000 2001 2002 *Country Road US operations adjusted for 2001
Slide 8: Balance sheet
woolworths holdings results balance sheet June June Change 2002 2001 Rm Rm Rm Assets Property, plant and 916,1 980,4 (64,3) equipment Export partnerships 210,0 229,0 (19,0) Inventories 511,2 503,9 7,3 Financial services’ assets 1 806,7 1 440,7 366,0 Accounts receivable 501,3 456,5 44,8 Cash 118,5 12
Slide 9: Country Road – US operations closure
woolworths holdings results country road – US operations closure Write-off of net assets A$18,9m, and other costs and provisions of A$5,0m (R122,7m after minority interests) Note: The loss on discontinuance has been increased by R11,3m from the amount disclosed in the interims. This was to adjust fo
Slide 10: Cash flow
woolworths holdings results cash flow June 2002 June 2001 Rm Rm Cash generated by operations, before 836 709 tax* Increase in borrowings 299 (18) 1 135 691 Utilised by : Tax paid (284) (98) Dividends paid (146) (103) Capex (335) (253) Proceeds on disposal of property, 152 55 plant and equipment Fina
Slide 11: Cash flow (cont.) – capex
woolworths holdings results cash flow (cont.) capex R335m Other 2.9% Store developments IT 36.9% woolworths financial 60.2% services assets R391m Visa card 18.2% WW card 52.5% Personal loans 29.3%
Slide 12: Return on equity
woolworths holdings results return on equity 20.2 17.2 % % 13.8 % 12.7 11.5 % % 1998 1999 2000 2001 2002
Slide 13: Woolworths operations results
woolworths operations results income statement June June % 2002 2001 Change 53 52 weeks weeks Rm Rm Revenue 7 700,8 6 295,2 22.3 Turnover 7 302,0 5 955,4 22.6 Cost of merchandise 5 010,8 4 089,7 22.5 Gross profit 2 291,2 1 865,7 22.8 Interest received and other 398,7 339,8 17.3 revenue Operating exp
Slide 14: Operations performance
woolworths operations performance June 2002 June % 53 weeks 2001 Change Rm 52 weeks Rm Turnover 7 302,0 5 955,4 22.6 Textiles 3 834,1 3 258,9 17.6 Corporate (retail) 3 435,9 2 955,0 16.3 Franchise (cost plus 398,2 303,9 31.0 commission) Foods 3 302,1 2 566,0 28.7 Corporate (retail) 3 255,4 2 538,5 2
Slide 15: Country Road Limited – continuing operations (Rm)
country road limited results income statement – continuing operations June 2002 June 2001 % Change Rm Rm Revenue 1 124,9 825,4 36.3 Turnover 1 119,4 823,4 36.0 Cost of merchandise 561,0 394,8 42.1 Gross profit 558,4 428,6 30.3 Other revenue 5,5 2,0 > 100 Operating expenses 541,8 441,9 22.6 Operating
Slide 16: Country Road Limited – continuing operations (A$m)
country road limited results income statement – continuing operations June 2002 June 2001 % Change A$m A$m Revenue 207,6 201,4 3.1 Turnover 206,6 200,8 2.9 Cost of merchandise 103,5 96,3 7.5 Gross profit 103,1 104,5 (1.3) Other revenue 1,0 0,6 - Operating expenses 101,9 108,4 (6.0) Operating profit/
Slide 17: Country Road Limited – discontinued operations
country road limited results income statement – discontinued operations June 2002 June 2001 A$m Operating loss (3,6) (4,1) Loss on discontinuance (23,9) - (27,5) (4,1) Rm Operating loss (14,7) (18,8) Loss on discontinuance* (148,0) - (162,7) (18,8) *R122,7m on consolidation, (i.e. R148m less FCTR R8