Woolworths Holdings Limited · JSE:WHL
Woolworths — FY2002 Earnings Presentation
15 slides from Woolworths's earnings presentation, August 2002
Slide 1: Woolworths Financial Services
WOOLWORTHS the difference financial services
Slide 2: Woolworths Financial Services performance 2001/02
woolworths financial services performance 2001/02 • Profit growth very healthy • Accountable contribution 27.4% on last year • WW Card portfolio showed healthy growth - sales contribution consistent • Personal Loan portfolio growth slowed down • WW Unit Trust – slow fund growth Growth was impacted u
Slide 3: The Woolworths card
woolworths financial services performance 2001/02 the woolworths card 979 000 1 020 861 000 847 893 000 000 000 R861 R964 R1 R1 R1 m m 068m 149m 349m Jun- Jun- Jun- Jun- Jun- 98 99 Debtors Book 00 Active Accounts 01 02
Slide 4: The Woolworths card – net bad debt moving annual
woolworths financial services performance 2001/02 the woolworths card – net bad debt moving annual 4.50% 3.29% 3.33% 2.81% 2.46% Jun- Jun- Jun- Jun- Jun- 98 99 00 01 02
Slide 5: Personal loans
woolworths financial services performance 2001/02 personal loans R382m R287m R140m 88 000 68 000 43 000 5 000 Jun- Jun- Jun- Jun- Debtors Book Active Accounts 99 00 01 02
Slide 6: Personal loans – net bad debt
woolworths financial services performance 2001/02 personal loans – net bad debt moving annual 3.54% 3.02% 2.20% 1.89% Jun- Dec-01 Jun- Dec-02 01 02 (forecast)
Slide 7: Unit trusts – domestic equity and international
woolworths financial services performance 2001/02 unit trusts – domestic equity and international R35m R27m 14 000 R15m 10 000 4 000 Jun- Jun- Jun- Fund Size No Of Accounts 00 01 02
Slide 8: The Woolworths VISA credit card
woolworths financial services performance 2001/02 the woolworths VISA credit card R70m R47m 23 000 13 000 11 000 R5m Jun- Fund Size Dec-01 No. Of Accounts Jun- 00 02
Slide 9: Delinquency levels: WW card and WW loan
woolworths financial services performance 2001/02 % WW card Jun 02 Dec 01 June 01 Dec 00 Current – delinquency level 2 94.6 95.1 93.9 94.5 > Delinquency level 2 5.5 4.9 6.1 5.5 WW loan Current – delinquency level 2 97.7 97.9 98.5 98.9 > Delinquency level 2 2.3 2.1 1.5 1.1
Slide 10: Strategy 2002/03
woolworths financial services strategy 2002/03 • Further Roll out of WW VISA card • Building card and loan book • Extend in-store presence • Refine risk management strategies of card portfolio • Investigate debit card • Money market unit trust
Slide 11: Woolworths – the difference
WW/ WOOLWORTHS the difference
Slide 12: Operations: customer service
woolworths operations customer service • Explore concept of solutions – kids and gifts • Leverage Customer Knowledge Management • Redefine customer service
Slide 13: Operations: stores expansion
woolworths operations stores expansion Past (2001/02) Future (2002/03) New stores New stores • 13 new stores (12 food stores) • 17 new food stores Rationalisation of trading space Rationalisation of trading space • Reduced space at 4 stores • To reduce space at 4 stores Local franchise expansion Loc
Slide 14: Operations: trading space
woolworths operations trading space June 2002 % m2 Change Footage 333 692 4.2 Textiles 266 635 3.5 Corporate 204 516 (1.9) Franchise – SA 36 381 36.6 Franchise – International 25 738 13.8 Foods 67 057 7.3 Corporate 64 174 5.9 Franchise – SA 720 100.0 Franchise – International 2 163 15.2 June 2002 Ju
Slide 15: Operations: international business
woolworths operations international business Achieved : • Opened 3 stores in the Gulf • Franchise arrangements finalised in Ghana, Nigeria, Uganda, Mozambique and Saudi Arabia • Kenya converted from a distribution agreement to full franchise Future : • Finalise franchise arrangements in Kuwait and Q