Slide 1: ASX cover letter - A Day in the Marketplace Part A
WOOLWORTHS LIMITED 4 May, 2003 The Manager, Companies Australian Stock Exchange Limited Company Announcements Office Exchange Cenire Level 6 20 Bridge Street SYDNEY NSW 2000 Dear Sir, RE: WOOLWORTHS LIMITED 28 pages including cover sheet ABN. 88 000 014 675 AUSTRALIAN STOCK EXCHANGE HI WOW000416 Ple
Slide 2: A Day in the Marketplace - Welcome
2 P. NO. 147 R JEFFS 612 9321396 1. MAY. 2003 9:16 WOOLWORTHS LIMITED ‘A Day in the Marketplace’ 1st May 2003 Roger Corbett and Tom Pockett Welcome Woolworths Limited
Slide 3: Sales Year to Date by Division
96 3 R JEFFS 612 9321 3:16 1. MAY. 2003 SALES YEAR TO DATE BY DIVISION (§ millions) 2002 2003 Increase Normalised ‘4 Food and Liquor 14,747 16,163 9.6% 9.8% Petrol 791 4,293 63.5% 63.5% Supermarket Division 15,538 17,456 12.3% 12.5% BIG W General Merchandise 1,785 1,972 10.5% 11.3% Consumer Electron
Slide 4: Woolworths Limited
4 P — NO. 14 96 3 R JEFFS 612 9321 3:16 1. MAY. 2003 Woolworths Limited
Slide 5: Cumulative savings
R JEFFS 612 9321396 y:17 1. MAY. 2003 PA Savings $ million 600 300 3 year cumulative savings 2.11% of sales 368 = $1.0 billion 517 Level Il increasingly supply chain driven Level I Mainly CODB line items and shared services Woolworths Limited
Slide 6: BIG W Business Update
6 P. NO. 147 R JEFFS 612 9321396 1. MAY. 20030 9:17 1 May 2003 BIG W |WE SELL FOR LESS Business Update
Slide 7: Trading Update
NO. 147 96 3 R JEFFS 612 9321 y:17 1. MAY. 2003 1 May 2003 Trading Update There is a shift in Easter from March LY to April TY. Combining March and April to remove this change we anticipate comp growth of approximately 5% and double digit growth in total over the two month period. Growth has been un
Slide 8: Current Competitive Landscape
96 3 R JEFFS 612 9321 y:17 1. MAY. 2003 Current Competitive Landscape David F03 H1 Kmart Target MGB Jones BIG W Sales $M 2,291 1,418 1,741 924 1,437 Sales Growth +9.6% +8.7% (1.3}% +5.1% +11.2% EBIT $ 85.1 68.3 38.9 48,3 86.0 % to Sales 3.71% 4.82% 2.23% 5.23% 5.98% Store # 470 * 257 * 74* 38 ** 104
Slide 9: Sales Trend
96 3 R JEFFS 612 9321 y:17 1. MAY. 2003 Sales Trend CAGR F97 — F02, 8.5% 2,500 5 2,280.5 +10.3% 1,913.8 2,000 + +7.0% = oD 1,500 - - 1,000 1 7 1 1 7 F9?7 Fas F99 Foo FO1 FO2 Actual * Actual Actual Actual Actual Actual * A consistent track record of solid sales growth... “53 Weak Financial Year 1 May
Slide 10: EBIT Trend
96 3 R JEFFS 612 9321 9:18 1. MAY. 2003 EBIT Trend CAGR F97 — F02, 14.3% 100 - 65.3 +16.2% 3M 48.0 74.3 93.5 412.1% 83.4 aa 412.3% FO? F98 Fag Actual * Actual Actual FO‘ Fo2 Actual Actual * ...which drives consistent double-digit EBIT growth. 1 May 2003 * 83 Week Financial Year 5
Slide 11: Competitive Landscape
96 3 R JEFFS 612 9321 9:18 1. MAY. 2003 1 May 2003 Competitive Landscape BiG W holds less than 3% share of the Australian Non FLG Retail Market highlighting the opportunities for future growth. Kmart and Target results have improved albeit from a low base and we expect them to continue to offer stro
Slide 12: Growth Opportunities
NO. 147 96 3 R JEFFS 612 9321 9:18 1. MAY. 2003 Growth Opportunities Range / Merchandise Evolution * The continued aggressive positioning of consumable items across all departments to drive traffic and visitation frequency. * Being first to market with new products, * Taking DDS ownership of emergin
Slide 13: 9:19 R JEFFS 9321396 WO. P13
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Slide 14: Growth Opportunities
NO. 147 96 3 R JEFFS 612 9321 9:19 1. MAY. 2003 Growth Opportunities Range / Merchandise Evolution | * The continued aggressive positioning of consumable items across all departmenis to drive traffic and visitation frequency. * Being first to market with new products. * Taking DDS ownership of emerg
Slide 15: 9:19 R JEFFS 9321396 HO.
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Slide 16: Growth Opportunities
NO. 147 96 3 R JEFFS 612 9321 9:26 1. MAY. 2003 Growth Opportunities Range / Merchandise Evolution * The continued aggressive positioning of consumabie items across all departmenis to drive traffic and visitation frequency. * Being first to market with new products. * Taking DDS ownership of emergin
Slide 17: BIG W - We Sell for Less
96 3 R JEFFS 612 9321 9:26 1. MAY. 2003 BIGW WE SELL FOR LESS 1 May 2003 12
Slide 18: Growth Opportunities
NO. 147 96 3 R JEFFS 612 9321 9:26 1. MAY. 2003 Growth Opportunities Range / Merchandise Evolution * The continued aggressive positioning of consumable items across all departments to drive traffic and visitation frequency. * Being first to market with new products. * Taking DDS ownership of emergin
Slide 19: 9:26 R JEFFS 9321396 WO. P19
1. MAY. 2003 9:26 R JEFFS 612 9321396 WO. 147 P19 €00z Aeyy 1 IA A4PIN
Slide 20: 3:21
96 3 R JEFFS 612 9321 3:21 1. MAY. 2003 1 May 2003 15
Slide 21: e002 ABW |
1. MAY. 2003 e002 ABW | 9:22 R JEFFS 612 9321396 Xen
Slide 22: EDLP: A way of life at BIG W
96 3 R JEFFS 612 9321 9:23 1. MAY. 2003 EDLP: A way of life for over 12 years at BIG W Definition Everyday Low Prices means stable, dependable, lower prices every day on national brands. This means that every time a customer shops in our stores, they can be confident that the “total of the tape” wil
Slide 23: BIG W Value Chain
NO. 147 96 3 R JEFFS 612 9321 9:23 1. MAY. 2003 BIG W Value Chain Distribution Centres Stores Inbound Guftbound e Logistics Logistics = Direct Store Buying & = Deliveries Marketing o Supporting Processes (e.g., HR, IT, Finance) Consumers EDLP delivers benefits to the 3 stakeholders in the BIG W vatu
Slide 24: Cross Dock
NO. 147 96 3 R JEFFS 612 9321 9:24 1. MAY. 2003 Cross Dock Cross Dock supports the philosophy of EDLP: Win for Suppliers - Deliveries to 2 distribution centres not 104 stores. * Full electronic “B2B", Win for BIG W * — Significant reduction in direct deliveries and store labour. * Associated reducti
Slide 25: EDLP at BIG W
NO. 147 96 3 R JEFFS 612 9321 9:24 1. MAY. 2003 EDLP at BIG W EDLP ai BIG W is a continuing journey. To date we have benefited from EDLP in alt key segments of our value chain. Customers * Confidence and trust in the knowledge that they can shop “today” and pay a fair price. * No need to wait for pe
Slide 26: €00Z ABW |
1. MAY. 2003 €00Z ABW | Le 9:24 ti R JEFFS 612 9321396 yH CNR YS we : NO. 14 26
Slide 27: EDLP at BIG W continued
NO. 147 96 3 R JEFFS 612 9321 9:25 1. MAY. 2003 EDLP at BIG W continued Stores * Smooiher more predictable replenishment cycles. - Decreased out of stocks. * Reduced labour with the reduction in promotional “tie ups”, management of markdowns, clearance and presentation. * Improve store productivity
Slide 28: In Summary
NO. 147 R JEFFS 612 9321396 1. MAY. 2003 9:25 In Summary " A proven business model =" Underpinned by EDLP = Continuing to deliver growth 1 May 2003 23