Woolworths Group Ltd · ASX:WOW
Woolworths — Investor Presentation (July 2019)
16 slides from Woolworths's investor presentation, Jul 3, 2019
Slide 1: Merger and separation of Endeavour Drinks and ALH
Merger and separation of Endeavour Drinks and ALH 3 July 2019 Woolworths Group Limited ABN 88 000 014 675
Slide 2: Merger and separation of Endeavour Drinks and ALH
1 Merger and separation of Endeavour Drinks and ALH Agreement to merge Endeavour Drinks and ALH Group (‘ALH’) into a combined entity, expected to be called Endeavour Group Limited (‘Endeavour Group’) Following the merger, Woolworths Group will pursue a separation by demerger or value-accretive alter
Slide 3: We are in the second horizon of our transformation
2 We are in the second horizon of our transformation Horizon 2 Horizon 3 Horizon 1 Differentiate our core customer offers Build trust in the Woolworths Group ecosystem and build Group platforms for the future through customer, team and community advocacy Stabilise our business and fix the basic
Slide 4: Two market-leading customer focused businesses post separation
3 Two market-leading customer focused businesses post separation Australia and New Zealand's leading Australia's leading drinks and food and everyday needs business hospitality business • F181 revenue: $47.1bn; EBIT: $1,773m • F182 revenue: $9.9bn; EBIT: $775m • 1,020 Woolworths Supermarkets and Met
Slide 5: The new structure positions both groups to succeed in partnership
4 The new structure positions both groups to succeed in partnership Win-win Partnership o Simple and more Joint customer food and o One integrated business agile operating drinks offer in-store and across drinks and model online hospitality o Increased focus on Woolworths Rewards o Broader manda
Slide 6: Endeavour Group: Australia's leading drinks and hospitality business
5 Endeavour Group: Australia's leading drinks and hospitality business Leading drinks retail brands Market leader in hospitality Dan Murphy's 327 ALH operated hotels • 227 stores (including flagship Prahran Cellars) On-premise drinks • >1,000 bars including traditional bars, night clubs and BWS the
Slide 7: Endeavour Group a leader in responsible service
6 Endeavour Group a leader in responsible service Responsible service of alcohol across Responsible gaming measures stores, e-Com and hotels implemented • “ID 25” age verification and “Don’t buy for them” • Established a common charter for the responsible secondary supply initiatives service of gami
Slide 8: Endeavour Group able to realise its full potential
7 Endeavour Group able to realise its full potential Simplify into a more customer-centric operating model Create a leaner and more customer focused business across Endeavour Drinks and ALH Further develop our retail drinks and hospitality network Capitalise on network growth opportunities, ramp
Slide 9: Woolworths Group: Australia and New Zealand's leading food and everyday needs business
Woolworths Group: Australia and New Zealand's leading 8 food and everyday needs business Complementary Strong core Market-leading portfolio businesses retail food business digital capabilities and partnerships Supermarkets and Convenience Rewards BIG W • Network of 984 Woolworths • ~11.5m members ac
Slide 10: Woolworths Group focus on the core and evolve for the future
9 Woolworths Group focus on the core and evolve for the future Simplify our operating model and focus on growing our core food and everyday needs retail businesses Continue our renewal and new store opening program with emphasis on convenience, focus on fresh and health, and strategically expand o
Slide 11: Woolworths Group is evolving into a food and everyday needs retail ecosystem
Woolworths Group is evolving into a food and everyday needs 10 retail ecosystem Extend our brand Build out our range into new channels and services Drive up Drive thru Core food and everyday needs retail Deepen food and Pick up On everyday Demand needs offer Same Day B2C Home Delivery Grow and partn
Slide 12: Our key Group platforms forming the basis of our partnerships
11 Our key Group platforms forming the basis of our partnerships • Access to our Rewards program, with ~11.5m members and world class 1:1 Rewards & personalisation Payments • Low cost digital payments including acquisition and processing Media & • Leading scale and reach of physical and digital mark
Slide 13: Intention to separate Endeavour Group in calendar 2020
12 Intention to separate Endeavour Group in calendar 2020 • Intention to pursue a separation by demerger or value-accretive alternative • Separation to be undertaken in calendar 2020 following completion of the Endeavour Drinks/ ALH merger • Overarching objective is to maximise shareholder value • D
Slide 14: Key transaction steps
13 Key transaction steps Today BMG Merger (second half CY 2019) 25% 75% + Contractual 100% entitlements1 Endeavour Retail • Formal transfer of assets and liabilities from Food Portfolio ALH Drinks supply Woolworths Group to form Endeavour Group Supermarkets BIG W Dan Murphy's Hotels • Subject to Woo
Slide 15: Q&A
Q&A
Slide 16: Disclaimer
Disclaimer This presentation contains summary information about Woolworths Group Limited (Woolworths Group) and its activities current as at the date of this presentation. It should be read in conjunction with Woolworths’ other periodic and continuous disclosure announcements filed with the Australi