Slide 1: Company Results Full Year 2021
together Live better C O M PA N Y R E S U LT S F U L L Y E A R 2 0 2 1
Slide 2: Woolworths Group purpose
Woolworths Group purpose COMPANY RESULTS FULL YEAR 2021 2 What we mean by ‘we’ What we mean by ‘create’ What we mean by ‘experiences’ Our team and our partners We constantly innovate to The moments we create in store and make a positive impact on online for customers, communities and the lives of ou
Slide 3: Contents
Contents F21 GROUP SUMMARY & PROGRESS 4 Brad Banducci GROUP FINANCIAL RESULTS 13 Stephen Harrison BUSINESS PERFORMANCE UPDATE 27 CURRENT TRADING & OUTLOOK 47 Brad Banducci
Slide 4: Committed to operating COVIDSafe and showing COVIDCare
Committed to operating COVIDSafe and showing COVIDCare COMPANY RESULTS FULL YEAR 2021 4 Established pop-up vaccination clinics at key food-related DCs in NSW and Victoria with assistance from Federal and State governments Provided up to eight hours of paid leave for full-time and part- time team mem
Slide 5: F21 summary
F21 summary COMPANY RESULTS FULL YEAR 2021 5 Focused on being COVIDSafe and showing COVIDCare to team Completed Endeavour Group demerger and laid the foundations for the new era of Woolworths Group Strong F21 trading performance with Group EBIT up 13.7%; continuing operations up 11.1% Increased capa
Slide 6: Working together to create a better tomorrow
Working together to create a better tomorrow COMPANY RESULTS FULL YEAR 2021 6 People Planet Product Have a positive impact on Make a positive change to the future of our Ensure we leave the environment people and the planet through the people, our partners and our communities better off for future g
Slide 7: Progress against key priorities (i)
Progress against key priorities (i) COMPANY RESULTS FULL YEAR 2021 7 1 2 3 Better Together for a Better Accelerate Digital, eCom and Differentiate our Food Tomorrow for our Customers, Convenience for our increasingly Customer Propositions Teams and Communities Connected Customers • Woolworths named
Slide 8: Progress against key priorities (ii)
Progress against key priorities (ii) COMPANY RESULTS FULL YEAR 2021 8 4 5 6 Stand up Evolve our Portfolio and Build Keep our Business COVIDSafe and Endeavour Group Strong Adjacencies Futureproof our E2E Operating Model • Separation work formally recommenced in • Material EBIT improvement from BIG W
Slide 9: Woolworths Group's retail ecosystem
Woolworths Group’s retail ecosystem COMPANY RESULTS FULL YEAR 2021 9 1 2 B2C Food B2B Food Our cornerstone retail food Expanding food businesses, famous for good into new customer food, prices and acts and segments, channels always convenient and markets 4 3 Platforms & Partners More Everyday Techno
Slide 10: Growing our retail ecosystem
Growing our retail ecosystem COMPANY RESULTS FULL YEAR 2021 10 B2C Food B2B Food More Everyday Retail Platforms Adapting store and product portfolio Organising around businesses to serve Partnering to grow our Everyday needs Setting up platforms with a focus on digital propositions, scaling eCom cap
Slide 11: F22 Group priorities
F22 Group priorities COMPANY RESULTS FULL YEAR 2021 11 Leading in creating a Extending into new Reimagining today’s better tomorrow; growth adjacencies and fresh food people - our differentiating on markets stores, our services and sustainability our team support Activate Everyday for Connecting cus
Slide 12: Contents
Contents F21 GROUP SUMMARY & PROGRESS 4 Brad Banducci GROUP FINANCIAL RESULTS 13 Stephen Harrison Group financial results Key balance sheet metrics Capital management framework Cash flow summary Capital expenditure Capital management Primary Connect transformation BUSINESS PERFORMANCE UPDATE 27 CURR
Slide 13: Financial Results and Capital Management
Financial Results and Capital Management
Slide 14: F21 Group results summary
F21 Group results summary COMPANY RESULTS FULL YEAR 2021 14 $ MILLION F21 F20 CHANGE Group before significant items Sales 67,278 63,675 5.7% EBIT 3,663 3,219 13.7% NPAT 1,972 1,602 22.9% Continuing operations before significant items Sales 55,694 53,080 4.9% EBIT 2,764 2,485 11.1% NPAT 1,504 1,249 2
Slide 15: H2 F21 sales growth impacted by the cycling of COVID
H2 F21 sales growth impacted by the cycling of COVID COMPANY RESULTS FULL YEAR 2021 15 Australian Food comparable sales New Zealand Food comparable sales Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 16% 16% 13.4% 13.9% 11.5% 10.3% 6.6% 8.9% 10% 10% 7.1% 3.8% 5.8% 4.9% 4.5% Growth Growth 0.8% 4% 4% 0.1% -2% -2% -2.1% -4.
Slide 16: F21 Group EBIT up 13.7% and H2 Group EBIT up 18.3%
F21 Group EBIT up 13.7% and H2 Group EBIT up 18.3% COMPANY RESULTS FULL YEAR 2021 16 Group sales and EBIT F21 H2 F21 $ MILLION SALES CHANGE EBIT CHANGE SALES CHANGE EBIT CHANGE Australian Food 44,441 5.4% 2,432 9.0% 20,992 0.2% 1,103 4.5% New Zealand Food 6,652 (2.5)% 336 (6.4)% 3,187 (7.8)% 155 (15
Slide 17: Demerger accounting implications
Demerger accounting implications COMPANY RESULTS FULL YEAR 2021 17 • The assets and liabilities of Endeavour Group are classified separately as held for distribution as at 27 June 2021 and Endeavour Group is recognised as a discontinued operation following shareholder approval of the demerger 10 on
Slide 18: Inventory days and ROFE improvement in F21
Inventory days and ROFE improvement in F21 COMPANY RESULTS FULL YEAR 2021 18 Average inventory days Normalised ROFE Days Percentage Continuing operations Continuing operations Group Group 16.8 40.0 39.0 39.5 15.8 37.6 37.2 37.0 15.1 36.0 36.2 13.7 31.5 31.0 F17 F18 F19 F20 F21 F20 F21 Average Group
Slide 19: Capital management framework
Capital management framework COMPANY RESULTS FULL YEAR 2021 19 One of Australia’s Leading market position Defensive Growth opportunities in Strong cash flow from leading and most in Food & Everyday characteristics through eCom & adjacencies AUS and NZ businesses Investment proposition trusted brands
Slide 20: Cash flow from operations financing higher investment and dividends
Cash flow from operations financing higher investment and COMPANY RESULTS FULL YEAR 2021 20 dividends F21 F20 $ MILLION (52 WEEKS) (52 WEEKS) CHANGE EBITDA – continuing operations 4,843 4,453 8.7% Group EBITDA growth of 24.4% driven by underlying trading improvement in continuing and discontinued op
Slide 21: Operating capex of $2b in F21
Operating capex of $2b in F21 COMPANY RESULTS FULL YEAR 2021 21 Operating capex $ MILLION F21 F20 Sustaining capex 1,385 1,104 Growth capex 653 540 F22 operating capex Operating capex 2,038 1,644 expected to be ~$2b, Property development 389 499 driven by investment in Acquisitions 50 86 eCom, digit
Slide 22: Dividends and shareholder returns
Dividends and shareholder returns COMPANY RESULTS FULL YEAR 2021 22 108 cps full year dividend $2.7b to be returned to shareholders1 ($m) Dividends (cents per share) Shareholder distributions paid during the year ($m) 3,082 102 108 2,697 10 Final dividend intended to put 94 shareholders in the same
Slide 23: Capital management: off-market Buy-Back
Capital management: off-market Buy-Back COMPANY RESULTS FULL YEAR 2021 23 Launching a $2b off-market Buy-Back Important dates • Target size: $2b 26 Aug Announcement of the Buy-Back 10 • The Buy-Back will be conducted through a tender process Last day that Shares can be acquired on-market to be • Eli
Slide 24: Funding
Funding COMPANY RESULTS FULL YEAR 2021 24 Debt maturity profile ($m) Mix by interest type2 Committed to solid investment-grade 1,500 credit ratings 1,250 14% 1,000 S&P: BBB (stable outlook)3 Moody’s: Baa2 (stable outlook)3 750 Credit metrics have significant 500 headroom above thresholds for current
Slide 25: Primary Connect transformation
Primary Connect transformation COMPANY RESULTS FULL YEAR 2021 25 Now operational Melbourne South Regional DC Melbourne Fresh DC Adelaide Regional DC Averaging 2.1m cartons per week in Q4’21 35,000 sqm Fresh DC Expanded to 94,000 sqm Further increase in volumes expected in F22 Opened August 2020 Expa
Slide 26: Contents
Contents F21 GROUP SUMMARY & PROGRESS 4 Brad Banducci GROUP FINANCIAL RESULTS 13 Stephen Harrison BUSINESS PERFORMANCE UPDATE 27 OUTLOOK 47 Brad Banducci
Slide 27: Woolworths: The fresh food people
. Woolworths The fresh food people
Slide 28: Australian Food
Australian Food COMPANY RESULTS FULL YEAR 2021 28 F21 F20 CHANGE F21 FINANCIAL METRICS Sales ($m) 44,441 42,151 5.4% EBITDA ($m) 4,006 3,707 8.1% EBIT ($m) 2,432 2,232 9.0% Gross margin (%) 29.4 29.2 21 bps CODB (%) 24.0 23.9 3 bps EBIT to sales (%) 5.5 5.3 18 bps Sales per square metre ($) 18,158 1
Slide 29: Progress against F21 priorities
Progress against F21 priorities COMPANY RESULTS FULL YEAR 2021 29 GIVING BACK TO THE COMMUNITY REWARDS ENGAGEMENT ACCELERATED ECOM Better customer 13.1m 2m 75% 629 Quiet hour rolled out to 840 stores and team experience Over $8m raised, and over 10,000t of edible for a better tomorrow food provided
Slide 30: Format and Network Development highlights
Format and Network Development highlights COMPANY RESULTS FULL YEAR 2021 30 Expanded Pick up with 379 (net) new Direct to boot enabled stores, bringing the total to 629 Opened 23 (net) new stores and completed 65 Renewals in F21 across Woolworths Supermarkets and Metro Food Stores Launched first eSt
Slide 31: WooliesX F21 highlights
WooliesX F21 highlights COMPANY RESULTS FULL YEAR 2021 31 Digital Digital &&Media Media eCom eCom& & Fulfilment Fulfilment Loyalty Loyalty& & FinTech FinTech Front door to Woolies Easy shopping when & where you want it Seamless experiences to enjoy a little more, every day 12.1m More choice on ultra
Slide 32: Australian Food F22 priorities
Australian Food F22 priorities COMPANY RESULTS FULL YEAR 2021 32 Bring a little good to everyone, everyday Transform our core proposition for changed customer needs Team A better sustainable Today’s Fresh Food Everyday and personalised Tailored Transforming advocacy tomorrow People value range E2E f
Slide 33: Company Results Full Year 2020
COMPANY RESULTS FULL YEAR 2020 33
Slide 34: New Zealand Food
New Zealand Food COMPANY RESULTS FULL YEAR 2021 34 $NZD F21 F20 CHANGE F21 FINANCIAL METRICS Sales ($m) 7,146 7,192 (0.6)% EBITDA ($m) 633 634 (0.2)% EBIT ($m) 361 378 (4.6)% Gross margin (%) 25.3 25.0 24 bps CODB (%) 20.2 19.8 45 bps EBIT to sales (%) 5.0 5.3 (21) bps Sales per square metre ($) 17,
Slide 35: New Zealand Food F21 highlights
New Zealand Food F21 highlights COMPANY RESULTS FULL YEAR 2021 35 Better Everyday For a Digital, eCom and Core Customer Value Foundations for Better Tomorrow Innovation Proposition the Future 30.2% 12.0% >4,000 products on Great Price New Palmerston North regional Ongoing COVID response F21 eCom F21
Slide 36: New Zealand Food F22 priorities
New Zealand Food F22 priorities COMPANY RESULTS FULL YEAR 2021 36 Better everyday for a Digital, eCom and Strengthen & transform our Strong foundations better tomorrow innovation core customer proposition Scale Scaling our Care for Focus on ultra-convenient simpler our team Fresh foods eCom program
Slide 37: Company Results Full Year 2021
COMPANY RESULTS FULL YEAR 2021 37
Slide 38: BIG W
BIG W COMPANY RESULTS FULL YEAR 2021 38 F21 F20 CHANGE F21 FINANCIAL METRICS Sales ($m) 4,583 4,106 11.6% EBITDA ($m) 348 207 67.6% EBIT ($m) 172 39 344.9% Gross margin (%) 33.6 31.8 180 bps CODB (%) 29.9 30.9 (100) bps EBIT to sales (%) 3.7 0.9 280 bps Sales per square metre ($) 4,517 3,962 14.0% R
Slide 39: BIG W highlights
BIG W highlights COMPANY RESULTS FULL YEAR 2021 39 Much to be proud of in F21 Simplified our offer to align with customer shopping missions - implemented range curation to make it easier to shop, and set up our data-led capabilities through the establishment of the Data, Analytics and Insights team
Slide 40: BIG W F22 priorities
BIG W F22 priorities COMPANY RESULTS FULL YEAR 2021 40 Four key strategic priorities in F22 Unlock best-in-class Turbocharging digital Lead on value and Continue to demonstrate availability by ensuring the experience by enabling destinations by continuing real care by truly living our right product
Slide 41: Endeavour Group
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Slide 42: Endeavour Group
Endeavour Group COMPANY RESULTS FULL YEAR 2021 42 $ MILLION F21 F20 CHANGE Endeavour Drinks Sales 10,167 9,275 9.6% EBITDA 960 826 16.3% EBIT 669 569 17.7% Hotels Sales 1,417 1,320 7.3% EBITDA 499 405 22.8% EBIT 261 172 51.7% Endeavour Group costs 31 7 n.m.
Slide 43: Dan Murphy's F21 highlights
Dan Murphy’s F21 highlights COMPANY RESULTS FULL YEAR 2021 43 Surpassed 5m Over 250 stores Rolled out My Dan’s innovative new nationwide members store formats +10 net new stores including launching And 20% more in F21 active members Dan’s 2.0 than a year ago in South Melbourne
Slide 44: BWS F21 highlights
BWS F21 highlights COMPANY RESULTS FULL YEAR 2021 44 Expanded network Enhanced in-store Lifted the bar on experience convenience 1,392 61 BWS stores were Launched 1 hour total stores renewed during delivery guarantee F21, creating a better (or free delivery next +23 net new stores, in-store experien
Slide 45: Hotels F21 highlights
Hotels F21 highlights COMPANY RESULTS FULL YEAR 2021 45 Keeping our Enhanced existing Resilient trading customers and footprint despite COVID team safe Refurbished 26 venues Navigating changing Over 2,500 COVID including launching ‘gaming regulations and multiple inspection checks room of the future
Slide 46: Contents
Contents F21 GROUP SUMMARY & PROGRESS 5 Brad Banducci GROUP FINANCIAL RESULTS 13 Stephen Harrison BUSINESS PERFORMANCE UPDATE 27 CURRENT TRADING & OUTLOOK 47 Brad Banducci
Slide 47: Current trading and outlook
Current trading and outlook COMPANY RESULTS FULL YEAR 2021 47 Strong sales growth in first eight weeks of F22 in Australian Food (+4.5%) BIG W sales impacted by restrictions; H1 EBIT expected to be materially below H1 F21 Group COVID costs increased to 0.5% of sales in first eight weeks F22 operatin
Slide 48: COVID costs declined materially in H2 but increasing again in F22
COVID costs declined materially in H2 but increasing again in F22 COMPANY RESULTS FULL YEAR 2021 48 H1 F21 Q3’21 Q4’21 H2 F21 Q1’22 $ MILLION (27 WEEKS) (13 WEEKS) (12 WEEKS) (25 WEEKS) (8 WEEKS) Cleaning and PPE 91 15 10 25 11 xx Contractors and security 13 3 4 7 1 Team costs1 60 5 5 10 22 Supply c
Slide 49: Thank you
Thank you
Slide 50: Glossary
Glossary COMPANY RESULTS FULL YEAR 2021 50 AWEI Australian Workplace Equality Index Cash realisation ratio (CRR) Operating cash flow as a percentage of Group net profit after tax before depreciation and amortisation Comparable sales Measure of sales which excludes stores that have been opened or clo
Slide 51: Glossary cont.
Glossary cont. COMPANY RESULTS FULL YEAR 2021 51 Net Promoter Score (NPS) A loyalty measure based on a single question where a customer rates a business on a scale of zero to 10. The score is the net result of the percentage of customers providing a score of nine or 10 (promoters) less the percentag
Slide 52: Glossary cont.
Glossary cont. COMPANY RESULTS FULL YEAR 2021 52 VOC NPS VOC NPS is based on feedback from Woolworths Rewards members. VOC NPS is the number of promoters (score of nine or 10) less the number of detractors (score of six or below) Voice of Supplier (VOS) A survey of a broad spectrum of suppliers faci
Slide 53: Disclaimer
Disclaimer COMPANY RESULTS FULL YEAR 2021 53 This presentation contains summary information about Woolworths Group Limited (Woolworths Group) and its activities current as at the date of this presentation. It is sourced from and should be read in conjunction with Woolworths’ other periodic and conti