Woolworths Holdings Limited · JSE:WHL
Woolworths — Q2 2026 Earnings Presentation
57 slides from Woolworths's earnings presentation, Mar 4, 2026
Slide 1: Woolworths Holdings Interim Results FY26
H OLDIN H S G T S R L O IM LW IT WOO ED INTERIM OD R E S U LT S GRO F Y2 6 GO W IN R G O O F UR C E DIFFEREN
Slide 2: Presentation Outline
PRES E NTATI O N O UTLI N E 01 02 03 04 OVERVIEW OF FINANCIAL STRATEGIC Q&A THE PERIOD OVERVIEW UPDATE AND OUTLOOK
Slide 3: Overview of the Period
OVERVIEW OF THE PERIOD ROY BAGATTINI GROUP CEO
Slide 4: Overview of the Period
OVERVIEW OF THE PERIOD Much-improved Group performance benefiting from strengthened core • Group turnover and concession sales above market, and well above inflation • Gross profit margin headwinds and forex impacts moderated aEBIT growth • aEBITDA growth > aEBIT growth, reflecting improved underlyi
Slide 5: The Strength of Our Woolworths Brand
THE STRENGTH OF OUR WOOLWORTHS BRAND Our loved and trusted brand, anchored in leading quality, innovation and sustainability, has been built over decades and is our strongest asset BRAND AFRICA MOST RECOGNITION AWARDS ACCOLADES AWARDS TRUSTWORTHY FOR MARKETING FOR FOOD FOR BEAUTY COMPANIES Received
Slide 6: Our Good Business Journey
OUR GOOD BUSINESS JOURNEY Our Good Business Journey (GBJ) is embedded in everything we do and a key differentiator for us PI LL AR 1 PI LL AR 2 PI LL AR 3 ETH I CAL AN D TH RIVI N G I N C LUS IVE FAI R AN D RES I LI E NT J USTI C E FOCUS AREAS FOCUS AREAS FOCUS AREAS S USTAI NAB LE FARM I N G PAC K
Slide 7: Woolworths Castle
WOOtWortHs “# C@SLEST Ruc«’ OUR FIRST ZERO-EMISSION REFRIGERATION OP WORLD.
Slide 8: Voted as the Business of the Year at the Standard Bank Top Women Awards
VOTED AS THE BUSINESS OF THE YEAR AT THE STANDARD BANK TOP WOMEN AWARDS
Slide 9: Recognised as a Top Employer for 2026
RECOGNISED AS A TOP EMPLOYER FOR 2026 BY THE TOP EMPLOYERS INSTITUTE, FOR THE SECOND CONSECUTIVE YEAR
Slide 10: Thank You
To our suppliers To our people who play a vital – the best in role in creating the industry! the exceptional Woolies Difference THANK YOU To our customers – the heart of our business – thank you for loving our brand as much as we do
Slide 11: Financial Overview
FINANCIAL OVERVIEW ZAID MANJRA GROUP FINANCE DIRECTOR
Slide 12: Financial Highlights
FINANCIAL HIGHLIGHTS • Strong Group sales growth, with all segments trading ahead of their respective markets • Gross profit margins impacted • Price investment • Deliberate action to clear excess inventory • Increased distribution costs • Channel and category mix • Positive profit growth across eve
Slide 13: Group Financial Overview for the Period
GROUP FINANCIAL OVERVIEW FOR THE PERIOD Strong sales growth across the Group | Positive profit growth in all businesses | Improved cash conversion and free cash flow | Healthy balance sheet | ROCE well ahead of WACC Turnover and Adjusted Adjusted Adjusted diluted concession sales EBITDA EBIT HEPS R4
Slide 14: Segmental Adjusted Earnings
SEGMENTAL ADJUSTED EARNINGS WSA aEBIT growth of +2.7% and aEBITDA growth of +5.9%, reflecting impact of significant capital investments | CRG aEBIT growth in A$ | Group earnings growth impacted by exchange rate translation Rm aEBIT aEBITDA +3.2% 4 000 +2.5% WSA aEBIT +2.7% WSA aEBITDA +5.9% -0.6% in
Slide 15: South African Macro Context
SOUTH AFRICAN MACRO CONTEXT Consumer sentiment remains negative | Improving macro indicators not translating into consumer spend, which continues to be constrained • Easing inflation and declining interest rates 5 • Middle-income earners increasingly under pressure from 0 Jun-21 Jun-22 Jun-23 Jun-24
Slide 16: Woolworths SA Sales Performance
WOOLWORTHS SA SALES PERFORMANCE % LY % LY % LY 10 10 10 8 7.4 8 7.7 8 6.8 7.0 6.2 6.1 6.2 6 5.6 6 5.3 6 4 4 4 2 2 2 – – – First Last H1 First Last H1 First Last H1 19 weeks 7 weeks 19 weeks 7 weeks 19 weeks 7 weeks • Strong above-market sales growth • Strong growth over the half despite • Encouragin
Slide 17: Woolworths Food: R27.3bn, R2.4bn, R1.8bn
Consistent performance underpinned by market share gains and investment in our premium product and service offering GP margin impacted by investment in DC expansion and online growth | aEBITDA grew 7.0% in line with sales growth | ROCE best-in-class notwithstanding significant capital investments Tu
Slide 18: Fashion, Beauty and Home: R8.3bn, R1.2bn, R0.8bn
Sector-leading sales growth supported by improved availability and benefits of strategic investments | Profit impacted by margin dilution and forex losses GP margin diluted by price investments and clearance of excess inventory | aEBIT and aEBITDA growth of +4.6% and 6.7%, respectively, adjusting fo
Slide 19: Woolworths Financial Services: R15.4bn, R0.9bn, R132m
Continued positive performance supported by market-leading impairment rate, notwithstanding decrease in net interest income due to sustained interest rate cuts Closing book +1.8% and +2.6% excluding legal book sales | Growth in non-interest revenue +19% | Impairment and costs well controlled Closing
Slide 20: Australian Macro Context
AUSTRALIAN MACRO CONTEXT Retail sector under stress as subdued discretionary spend impedes recovery | Prolonged and deep discounting across the sector DISCRETIONARY HOUSEHOLD SPENDING (% Y-O-Y) 25 • Inflation surprising to the upside keeping interest rates 20 high, and increasing 15 • Elevated house
Slide 21: Country Road Group Sales Performance
COUNTRY ROAD GROUP SALES PERFORMANCE % LY % LY 6 6 4 4 3.3 2.3 2.3 2 2 1.0 – – First Last H1FY26 19 weeks 7 weeks (2) • Positive sales growth throughout the period (4) • Market intensely promotional | Extended and deep discounting (4.5) • Strong Black Friday performance | Overall (6) market momentum
Slide 22: Pleasing Result with Positive Topline and Profit Growth
Pleasing result with positive topline and profit growth Brand repositioning gains traction | Successful transition to new operating model | GP margin dilution due to successful Black Friday campaign and earlier inventory clearance | Inventory significantly lower than LY Turnover Gross profit margin
Slide 23: Capital Expenditure
CAPITAL EXPENDITURE Significant multi-year strategic projects are nearing completion Investments in value chain capabilities in FBH, Food DC expansion and loyalty are concluding | Continued investment in store network, including Next Generation formats, technology including AI, data & analytics, onl
Slide 24: Group Balance Sheet
GROUP BALANCE SHEET Healthy balance sheet and return metrics | Gearing remains within target • Balance sheet health supports investments Net borrowings ROCE in growth and growth-enabling initiatives • Lower working capital investment from R5.8bn 16.6% reduced inventory levels WSA net debt: R7.6bn |
Slide 25: Cash Flow
CASH FLOW Positive free cash flow of R2.0bn includes R309m of working capital release | Strong cash conversion at 110% | FCF per share of 231.0cps vs. 67.7cps LY | Net gearing increases by R80m in H1 after share repurchases of R356m Rm 6 000 309 105 5 000 4 771 (770) 4 000 (522) FCF 231.0cps 3 000 (
Slide 26: H2 FY26 First Eight Weeks Trading and Outlook
H2 FY26 FIRST EIGHT WEEKS TRADING AND OUTLOOK FOOD • +5.4% sales growth, in line with the last seven weeks of the first half • H2 price movement expectation 4.0% – 5.0%, and 3.0% – 4.0% excluding meat • Net space planned increase of 3.5% for full year FBH • +12.1% sales growth enhanced by timing of
Slide 27: Strategic Update and Outlook
STRATEGIC UPDATE AND OUTLOOK ROY BAGATTINI GROUP CEO
Slide 28: Key Sources of Growth
KEY SOURCES OF GROWTH Having strengthened our foundations, we have shifted our focus to growing our difference...for good 1 PROTECT AND GROW OUR CORE 2 3 EXPAND LEAD IN FOR MORE CUSTOMER EXPERIENCE GROWING OUR DIFFERENCE FOR GOOD
Slide 29: Australia – Sequenced 4-Step Plan
AUSTRALIA – SEQUENCED 4-STEP PLAN Our deliberate 4-step plan culminated last year in the transformational reconfiguration of CRG’s operating model, setting it up as a standalone business to execute its “House of Brands” strategy FY2021 FY2023 FY2024 FY2025 PHASE ONE PHASE TWO PHASE THREE PHASE FOUR
Slide 30: Country Road Group
COUNTRY ROAD GROUP CRG is leveraging its competitive advantages and reconfigured operating model to permanently shift its trajectory PROTECT AND GROW OUR CORE • Reconfigured end-to-end operating model, enabling greater efficiency and improved structural economics • Brand repositioning driving improv
Slide 31: Woolworths Fashion | Beauty | Home
WOOLWORTHS FASHION | BEAUTY | HOME Having fixed and strengthened our FBH business, we are now driving profitable growth in each of Fashion, Beauty and Home PROTECT AND GROW OUR CORE • Investment in Value Chain Transformation enabling multiple capability shifts • Record availability | Improved tradin
Slide 32: What Sets Our Food Business Apart
WHAT SETS OUR FOOD BUSINESS APART The “holy grail”: the sweet spot which balances giving our customers the best overall proposition in the market, and our shareholders the highest return on capital in the sector • Unmatched capability in BEST BEST food science and technology for customers for shareh
Slide 33: Woolworths Food
WOOLWORTHS FOOD We are building a strong runway for continued profitable market share gain, and sustained sector-leading returns on capital PROTECT AND GROW OUR CORE • Unwavering focus on quality and innovation driving strong uptake in new lines, supporting continued market share gain • Further incr
Slide 34: Midrand Distribution Centre (Gauteng)
MIDRAND DISTRIBUTION CENTRE (GAUTENG)
Slide 35: Woolworths Ventures
WOOLWORTHS VENTURES Our WCafe, coffee Our curated selection pods and hatches, and of alcoholic beverages our NowNow format, and an elevated shopping elevate and leverage our experience providing a FOOD SERVICES Food Retail business, whilst WCELLAR premium drinks destination bringing new customers ~3
Slide 36: Leading in Customer Experience
LEADING IN CUSTOMER EXPERIENCE We are doubling-down on ensuring that we lead in customer experience, across all channels, leveraging our loyalty programmes and innovative technologies • MyDifference Loyalty programme now live, and driving incremental sales and stronger cross-shop • Continued growth
Slide 37: "Next Generation" Stores
“NEXT GENERATION” STORES WHL LIFES A BALL™ iw
Slide 38: Investment Thesis
INVESTMENT THESIS WHL is a pre-eminent retailer of premium-quality, primarily private label brands, with significant runway and firepower to grow our businesses...for good 1 • Strong runway for continued PREMIUM above-market growth • Robust balance sheet FOOD • Sustained sector-leading 4 • Strong ca
Slide 39: Outlook
OUTLOOK Notwithstanding external headwinds, we will continue to leverage our strategic investments to deliver an improved performance for the full year, and beyond • South African macro indicators looking more positive • Trading conditions however still likely to remain constrained across both geogr
Slide 40: Appendix
APPENDIX
Slide 41: Appendix Contents
APPENDIX CONTENTS • GROUP PERFORMANCE • GROUP INCOME STATEMENT • IMPACT OF FOREIGN EXCHANGE • RECONCILIATION OF ADJUSTED HEPS • GROUP BALANCE SHEET • GROUP NET DEBT • AUSTRALIAN BALANCE SHEET • INCOME STATEMENTS BY BUSINESS • IFRS 16 | DEPRECIATION AND AMORTISATION • TRADING SPACE | STORE LOCATIONS
Slide 42: Group Performance
GROUP PERFORMANCE H1 FY26 Turnover and concession sales R42.5bn +5.4% on LY Adjusted PBT R2.0bn +0.3% on LY Adjusted EBIT R2.9bn +2.5% on LY Adjusted EBITDA R4.6bn +3.2% on LY Adjusted diluted HEPS 170.3cps +0.7% on LY Interim dividend per share 118.0cps +10.3% on LY Free cash flow R2.0bn Net borrow
Slide 43: Group Income Statement
GROUP INCOME STATEMENT Dec 2025 Dec 2024 % Rm Rm change Turnover and concession sales 42 473 40 280 5.4 Growth across all businesses Gross profit 14 289 13 800 3.5 Higher promotional activity in apparel; price Adjusted EBITDA 4 625 4 483 3.2 investment and Food DC expansion Adjusted EBIT 2 852 2 783
Slide 44: Impact of Foreign Exchange
IMPACT OF FOREIGN EXCHANGE* As Forex Excluding % reported impact forex change For the six months ending Dec 2025 Rm Rm Rm LY Woolworths Food 1 780 21 1 801 4.3 Woolworths Fashion, Beauty and Home 771 40 811 4.6 Woolworths Financial Services (50% of PAT) 132 – 132 1.5 Country Road Group 169 7 176 4.2
Slide 45: Reconciliation of Adjusted HEPS
RECONCILIATION OF ADJUSTED HEPS Dec 2025 Dec 2024 % cps cps change EPS 166.6 245.4 (32.1) Basic earnings R1 475m (R2 195m LY) Non-core HEPS adjustments (post-tax) 1.7 1.2 Abnormal capital items (pre-tax) (1.2) (88.5) R792m Profit on sale of property LY Impairment of assets (1.2) – Profit on disposal
Slide 46: Group Balance Sheet
GROUP BALANCE SHEET Constant Dec 2025 Dec 2024 currency Rm Rm % change Assets Property, plant and equipment and intangible Investment in capacity and capability, offset assets 16 325 16 288 1.1 by Bourke Street property sale and CRG Right-of-use assets 7 571 7 551 1.7 impairments at June year-end In
Slide 47: Group Net Debt
GROUP NET DEBT Dec 2025 Dec 2024 WHL Net debt (Rm) 5 803 4 738 Interest-bearing debt 9 458 8 898 Net cash and cash equivalents (3 655) (4 160) Unutilised committed facilities – Group 5 993 3 906 WSA Net debt (Rm) 7 583 7 368 Interest-bearing debt 9 121 8 084 Net cash and cash equivalents (1 538) (71
Slide 48: Australian Balance Sheet
AUSTRALIAN BALANCE SHEET Dec 2025 Dec 2024 A$m A$m Assets Property, plant and equipment 93 114 Intangible assets* 237 313 Right-of-use assets 251 282 Inventories 159 188 Receivables, derivatives, deferred tax and tax assets 160 148 Total assets 900 1 045 Liabilities, excluding borrowings (311) (238)
Slide 49: Turnover and Concession Sales Growth (Food)
Dec 2025 Dec 2024 % Rm Rm change Turnover and concession sales 27 306 25 515 7.0 Gross profit margin 24.8% 24.9% Expenses 4 977 4 612 7.9 Adjusted EBIT 1 780 1 720 3.5 Adjusted PBT 1 608 1 565 2.7 Adjusted EBITDA 2 435 2 276 7.0 Adjusted EBIT margin 6.5% 6.7% ROCE 41.0% 51.3% Turnover and concession
Slide 50: Turnover and Concession Sales Growth (FBH)
Dec 2025 Dec 2025 Dec 2024 % Ex-Forex % Rm Rm change Rm change Turnover and concession sales 8 278 7 795 6.2 8 312 6.6 Gross profit margin 45.8% 46.3% 45.8% Expenses 2 986 2 831 5.5 2 964 5.1 Adjusted EBIT 771 763 1.0 811 4.6 Adjusted PBT 601 583 3.1 641 7.7 Adjusted EBITDA 1 244 1 191 4.5 1 284 6.7
Slide 51: Income Statement Net Interest Income Risk-adjusted Margin
Dec 2025 Dec 2024 % Rm Rm change Average total financial services assets 15 107 15 396 (1.9) % % Income statement to book to book Net interest income 928 12.3 935 12.1 (0.7) Impairment charge 485 6.4 416 5.4 16.6 Risk-adjusted margin 443 5.9 519 6.7 (14.6) Non-interest revenue 671 8.9 562 7.3 19.4 O
Slide 52: Country Road Group: Adjusted EBITDA A$71.3m
Dec 2025 Dec 2024 % A$m A$m change Turnover 568.6 555.7 2.3 Gross profit margin 57.9% 58.9% Expenses 319.4 319.1 0.1 Adjusted EBIT 14.8 14.2 4.2 Adjusted PBT 1.1 2.5 (56.0) Adjusted EBITDA 71.3 74.5 (4.3) Adjusted EBIT margin 2.6% 2.6% ROCE (2.2%) 3.7% Adjusted EBITDA • Comparable sales +2.5% • Trad
Slide 53: H1 FY26 Group Segmental Income Statement
H1 FY26 GROUP SEGMENTAL INCOME STATEMENT Woolworths Country Road Food FBH Logistics WFS Group Treasury Intragroup Group Dec 2025 Rm Rm Rm Rm Rm Rm Rm Rm Turnover and concession sales 27 306 8 278 405 – 6 484 – – 42 473 Concession sales (665) (172) – – – – – (837) Turnover 26 641 8 106 405 – 6 484 –
Slide 54: H1 FY25 Group Segmental Income Statement
H1 FY25 GROUP SEGMENTAL INCOME STATEMENT Woolworths Country Road Food FBH Logistics WFS Group Treasury Intragroup Group Dec 2024 Rm Rm Rm Rm Rm Rm Rm Rm Turnover and concession sales 25 515 7 795 374 – 6 596 – – 40 280 Concession sales (555) (157) – – – – – (712) Turnover 24 960 7 638 374 – 6 596 –
Slide 55: IFRS 16 | Depreciation and Amortisation
IFRS 16 | DEPRECIATION AND AMORTISATION Group WSA CRG Lease liabilities Rm Rm A$m Dec 2025 10 097 6 696 313 Dec 2024 10 074 6 182 344 Right-of-use assets Dec 2025 7 571 4 759 251 Dec 2024 7 551 4 277 282 Average remaining lease terms (years) Dec 2025 4.0 4.8 2.0 Dec 2024 3.9 4.7 2.2 With no options:
Slide 56: Trading Space | Store Locations
TRADING SPACE | STORE LOCATIONS Projected Projected Projected Dec 2024 % Dec 2025 % Jun 2026 % Jun 2027 % Jun 2028 TRADING SPACE 000m2 change 000m2 change* 000m2 change 000m2 change 000m2 Woolworths Fashion, Beauty and Home 428.3 (1.9) 420.5 (0.5) 419.6 1.2 424.7 0.4 426.6 South Africa 381.4 (2.4) 3
Slide 57: Disclaimer
DISCLAIMER Shareholders are advised that the information in this presentation has not been reviewed and reported on by Woolworths Holdings’ external auditors and it does not constitute a profit forecast. Woolworths Holdings has taken reasonable efforts to ensure the accuracy and completeness of the