Slide 1: Woolworths Holdings Limited
WOOLWORTHS HOLDINGS LIMITED
Slide 2: Economic Overview
WHL WOOLWORTHS HOLDINGS LIMITED OVERVIEW IAN MOIR 2 ECONOMIC OVERVIEW = South Africa Challenging economic conditions Competitive retail environment Low consumer confidence Inflation under pressure, but still within target range = Australia Slight improvement in economy Tough and extremely competitiv
Slide 3: Review of the Period
WHL WOOLWORTHS HOLDINGS LIMITED OVERVIEW IAN MOIR 3 REVIEW OF THE PERIOD "Turnover up 18.0% - Witchery in from Q2 « GP margin gains across the business "Tight cost management " Strong profit performance =~ HEPS +21.0% « Adjusted HEPS +35.9% " ROE up to 58.0% = Interim dividend +14.7% " Strong balanc
Slide 4: Woolworths - Clothing & GM
WHL WOOLWORTHS HOLDINGS LIMITED OVERVIEW IAN MOIR 4 WOOLWORTHS - CLOTHING & GM "Clothing sales in South Africa lincluding Country Road) SA CLOTHING SALES up 13.0%, with comparable sales up 7.7% + | % - Good double-digit performance across the board e - Turnaround in women’s Classic Continued benefit
Slide 5: Clothing & Footwear Turnover Growth
WHL WOOLWORTHS HOLDINGS LIMITED OVERVIEW IAN MOIR 5 CLOTHING & FOOTWEAR TURNOVER GROWTH Clothing & footwear - Woolworths vs market growth (3mma) 16% 14% 12% 10% 8% 6% 4% 1 1 r 1 T 1 1 1 r 1 ; 1 1 ome Woolworths growth — Market growth Se | Source: RLC fon new basis, collated by KPMG]
Slide 6: Woolworths - Food
WHL WOOLWORTHS HOLDINGS LIMITED OVERVIEW IAN MOIR 6 WOOLWORTHS - FOOD «Strong performance, with total sales up 11.1% * Growth ahead of the market "Supermarket strategy working well "Improved and consistent availability, reduced waste " Operating profit margin increased from 5.6% to 6.1%* " Adjusted
Slide 7: Food Turnover Growth
WHL WOOLWORTHS HOLDINGS LIMITED OVERVIEW IAN MOIR 7 FOOD TURNOVER GROWTH Food - Woolworths vs market growth ov wv vw v Ss 2+. © © & GF Y WY @ DM fF CS EK LT KF HF SF F tet Q @ame Woolworthsprice movement ly-on-yl mam CPI [Food & Non-alcoholic Beverages! ly-on-y! === Woolworths sales growth ly-on-y!
Slide 8: Woolworths - Stores
WHL WOOLWORTHS HOLDINGS LIMITED OVERVIEW IAN MOI 8 WOOLWORTHS - STORES * Comparable store sales growth at 7.4% = Net space grew by 5.7% " African expansion continues - 6new stores in Lesotho, Zambia, Mauritius and Nigeria
Slide 9: Country Road
WHL WOOLWORTHS HOLDINGS LIMITED OVERVIEW IAN MOIR 9 COUNTRY ROAD * — Slight improvement in conditions in Australia - Country Road traded well above market, with Witchery also trading well "Total turnover up 50.5% - Inclusion of Witchery for 3 months - Comparable sales in Australia up 10.7% "Gross pr
Slide 10: Financial Services
WHL WOOLWORTHS HOLDINGS LIMITED OVERVIEW IAN MOIR 10 FINANCIAL SERVICES * Closing book growth of 12% "Quality of book remains very good * Impairments remain low at 1.5% " Operating profit of the JV up 35.8% = ROE above target at 26.8%
Slide 11: Financial Review
NORMAN THOMSON FINANCIAL REVIEW
Slide 12: Financial Overview
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 12 FINANCIAL OVERVIEW Group turnover up 18.0% to R16.7 billion " Profit before tax up 20.8% to R18 billion "Diluted HEPS up 22.0% to 160.2 cps « Adjusted HEPS* up 35.9% to 174.9 cps " ROE** increased from 50.8% to 58.0% * Interim divide
Slide 13: Group Income Statement
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 13 GROUP INCOME STATEMENT Woolworths Clothing & GM Food Country Road Financial Services JV (after tax) Woolworths Retail Treasury Adjusted profit before tax Adjusting items* Profit before tax Tax Profit after tax Effective tax rate Dec
Slide 14: Group Income Statement Commentary
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 14 GROUP INCOME STATEMENT COMMENTARY
Slide 15: Woolworths Income Statement
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 15 WOOLWORTHS INCOME STATEMENT Turnover Cost of sales Gross profit Other revenue Expenses Store costs Other operating costs Amortisation of reacquired rights IFRS 2 charge Adjusted operating profit Adjusting items Unrealised forex (loss
Slide 16: Woolworths Income Statement Commentary
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 16 WOOLWORTHS INCOME STATEMENT COMMENTARY
Slide 17: Woolworths Segmental Performance
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 17 WOOLWORTHS SEGMENTAL PERFORMANCE Gross profit margin Operating profit margin* Dec 2011 Dec 2011 Clothing & GM Food Woolworths * Based on adjusted operating profit
Slide 18: Country Road Income Statement
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 18 COUNTRY ROAD INCOME STATEMENT Dec kom changé Turnover 220 50.5 Cost of sales 89 43.8 Gross profit 31 55.0 Other revenue 1 - Expenses 118 43.2 Store costs 92 37.0 Other operating costs 26 65.4 Adjusted operating profit 4 >100 Witchery
Slide 19: Country Road Income Statement Commentary
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 19 COUNTRY ROAD INCOME STATEMENT COMMENTARY
Slide 20: Financial Services Income Statement
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 20 FINANCIAL SERVICES INCOME STATEMENT Consolidated pro forma %to Dec201 %to income statement book Rm book change Interest income 73 560 77 8.0 Interest paid 48 167 5.3 1.2 Net interest income 12.4 393 12.4 10.9 Impairment charge 1.5 52
Slide 21: Financial Services Income Statement Commentary
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 21 FINANCIAL SERVICES INCOME STATEMENT COMMENTARY
Slide 22: Financial Services Book Performance
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 22 FINANCIAL SERVICES BOOK PERFORMANCE 8000 7344 [8% Dec 09 Dec 10 Decl Dec 12
Slide 23: Balance Sheet
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 23 BALANCE SHEET Assets Property, plant and equipment, intangible assets and loans Investment in JVs and associate Inventories Accounts receivable and deferred tax Net cash Equity and liabilities Shareholders’ funds Country Road borrowi
Slide 24: Balance Sheet Commentary
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 24 BALANCE SHEET COMMENTARY
Slide 25: Cash Generation
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 25 CASH GENERATION 3500 3.000 R242m 2500 R2272m |] 2000 1500 - (R740m) i (R392m) R842m 1000 ~ 500 | J (R965m) (R6ém) | - 4 : : : 1 1 : RI99m) 1 1 (500) ” (R1 490m) Cash flow Working Finance Taxation Net Dividends Franchise Sharebuy Witc
Slide 26: Capital Expenditure
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 26 CAPITAL EXPENDITURE Capex (Rm) * R373m (Dec 2011: R357m) Depreciation Dec 2011 Rm Woolworths 238 Country Road 55 Total group 293 Dec 2012 Dec 2011 * Excludes Witchery acquisition and franchise conversions
Slide 27: Return on Equity
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 27 RETURN ON EQUITY 58.0% 50% 446% “04% 60% 55% 50.8% 45% 39.4% 40% . 50% 44.9% 35% 45% 75 40% 30% % 263 35% 25% 30% 25% 20% 148% 133% «= 18.6% = 138.2% = 18.2% 50% 15% | = 13.3% —i—___—-8 | 15% (10.5% 1.7% 10% 10% 5% 5% 0% 0% Jun 08 Ju
Slide 28: Earnings and Distribution
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 28 EARNINGS AND DISTRIBUTION cents times 75 - 2.2 164.2 - 25 Dec-08 Dec-09 Dec-10 Dec-ll Dec-12
Slide 29: Guidance
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 29 GUIDANCE "Woolworths Sales growth expected to be in line with H1 Space growth planned for FY2013 * 2.9% growth in Clothing & GM space * 68% growth in Food space * Lower trading densities on extensions Clothing inflation to remain at
Slide 30: Guidance Continued
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 30 GUIDANCE CONTINUED "Country Road and Witchery - Similar comparative sales growth in H2 - Gross profit margins to be maintained - Tight cost control to continue - Witchery profit before interest expense in H2 to be similar to H1 - Int
Slide 31: Guidance Continued
WHL WOOLWORTHS HOLDINGS LIMITED FINANCIAL REVIEW NORMAN THOMSON 31 GUIDANCE CONTINUED * Group - Taxation lower due to full year impact of STC saving * Effective tax rate of 28% - Capex of approx R1.2bn p.a. for next 3 years - Dividend cover of 1.45 times Shareholders are advised that this informatio
Slide 32: Focus
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Slide 33: Strategic Focus
WHL WOOLWORTHS HOLDINGS LIMITED STRATEGIC FOCUS IAN MOIR 33 STRATEGIC FOCUS * Build strong, profitable customer relationships "Drive product dominance in Clothing & GM = Be the destination for Food "Expand our store footprint = Build for growth in WFS * Develop our omni-channel business " Optimise o
Slide 34: Build Strong, Profitable Customer Relationships
WHL WOOLWORTHS HOLDINGS LIMITED STRATEGIC FOCUS IAN MOIR 34 BUILD STRONG, PROFITABLE CUSTOMER RELATIONSHIPS = Continue to better understand and communicate with our customer WREVWARDS = Become more customer centric * Drive card acquisition more aggressively in conjunction with WFS MEMBERS BENEFIT IN
Slide 35: Drive Product Dominance in Clothing & GM
WHL WOOLWORTHS HOLDINGS LIMITED STRATEGIC FOCUS IAN MOIR 35 DRIVE PRODUCT DOMINANCE IN CLOTHING & GM Shorten merchandise cycle - Speed to market - In season trading = More newness more often * Owninnovation « Invest in price and drive better value = Further strengthen fashion credibility and fashion
Slide 36: Strategic Focus: Food
WHL WOOLWORTHS HOLDINGS LIMITED STRATEGIC FOCUS IAN MOIR 36 « Drive main shop by: - Extending ranges - Offering more branded goods - Increasing bulk packs - Investing in price Expanding space * Own innovation "Extend our dominance in fresh " Refocus our marketing
Slide 37: Expand Our Store Footprint
WHL WOOLWORTHS HOLDINGS LIMITED STRATEGIC FOCUS IAN MOIR 37 EXPAND OUR STORE FOOTPRINT = Continue to make big stores bigger - Significant extensions over next 2 years = Open new stores in multi-format strategy CLOTHING & GM FOOD Additional store No. ofnew Additional store No. of new footage m2) stor
Slide 38: Expand Our Store Footprint - Africa
WHL WOOLWORTHS HOLDINGS LIMITED STRATEGIC FOCUS IAN MOR 38 EXPAND OUR STORE FOOTPRINT — AFRICA «Grow our corporate business in Africa - Focus on selected countries and real estate - Acquisition of Botswana, Namibia and Ghana «Implement sustainable end to end processes « Improve customer value propos
Slide 39: Develop Our Omni-Channel Business
WHL WOOLWORTHS HOLDINGS LIMITED STRATEGIC FOCUS IAN MOIR 39 DEVELOP OUR OMNI-CHANNEL BUSINESS « Improve the customer experience — WOOLWORTHS iw | - Enhanced website —— ons a - Mobile compatibility - Move to nationwide delivery ; gt ROPICAL ed mr ? THUNDER cs 4 a: iM F of C&GM products Rody - Click &
Slide 40: Build for Growth in WFS
WHL WOOLWORTHS HOLDINGS LIMITED BUILD FOR GROWTH IN WFS STRATEGIC FOCUS IAN MOIR 40 = Transform the WFS customer experience through: - In-store kiosks — 15 minutes to card issue - Providing instant credit - \Improved service and efficiency = Offer credit limit increases at point of sale
Slide 41: Optimise Our Value Chain - Sourcing
WHL WOOLWORTHS HOLDINGS LIMITED OPTIMISE OUR VALUE CHAIN - SOURCING STRATEGIC FOCUS IAN MOI 41 = Leverage scale with leading suppliers to enhance margin and drive investment in price = |mprove speed to market: - Shorten lead times - Increase products on a fast response model - Fully integrate with s
Slide 42: Lower Our Cost of Doing Business
WHL WOOLWORTHS HOLDINGS LIMITED STRATEGIC FOCUS IAN MOIR 42 LOWER OUR COST OF DOING BUSINESS = Focus on under-performing stores « Improve profitability of key initiatives and areas in stores - eg. Food services, Beauty « Simplify our business . . (ATCH OF - Leverage large business projects ; THE DAY
Slide 43: Drive the New Country Road Business Forward
WHL WOOLWORTHS HOLDINGS LIMITED STRATEGIC FOCUS IAN MOI 43 DRIVE THE NEW COUNTRY ROAD BUSINESS FORWARD One of Australia’s largest specialty fashion retailers with complementary brands and a market-leading position The Witchery acquisition is an exciting growth opportunity - Leveraging Country Road's
Slide 44: Good Business Journey
WHL WOOLWORTHS HOLDINGS LIMITED STRATEGIC FOCUS IAN MOIR 44 "Saved over R135m to date through GBJ initiatives in energy, water, fuel, and packaging "Reduced relative energy use by 27% from 2004 benchmark — helping to offset tariff increases "Building a resilient Foods supply chain through Farming fo
Slide 45: Ian Moir
\ IAN MOIR
Slide 46: Outlook
WHL WOOLWORTHS HOLDINGS LIMITED OUTLOOK IAN MOIR 46 OUTLOOK " South African economy will remain constrained = Expect the upper income consumer to remain resilient " No expectation of an interest rate hike this year " First 6 weeks of trading have been good = Further signs of improvement in Australia
Slide 47: Medium-Term Targets
WHL WOOLWORTHS HOLDINGS LIMITED OUTLOOK IAN MOIR 47 MEDIUM-TERM TARGETS Woolworths Clothing & GM Operating profit margin Food Operating profit margin Country Road Operating profit margin Financial Services ROE
Slide 48: Additional
ADDITIONAL
Slide 49: Additional Information: Group Income Statement
WHL WOOLWORTHS HOLDINGS LIMITED ADDITIONAL INFORMATION 49 GROUP INCOME STATEMENT Dec 2011 Rm change Turnover 14 137 18.0 Cost of sales 9 090 B.5 Gross profit 5 047 26.1 Other revenue 42 28.6 Expenses 3 681 28.2 Operating profit 1 408 20.6 Investment income 35 (29) Finance costs 9 789 Profit before e
Slide 50: Woolworths Turnover Analysis
WHL WOOLWORTHS HOLDINGS LIMITED ADDITIONAL INFORMATION 50 WOOLWORTHS TURNOVER ANALYSIS Clothing & GM Corporate (retail) Franchise (wholesale) — local Franchise (wholesale) - international Food Corporate (retail) Franchise (wholesale) — local Franchise (wholesale) - international Logistics % Dec 2011
Slide 51: Clothing & GM Income Statement
WHL WOOLWORTHS HOLDINGS LIMITED ADDITIONAL INFORMATION 51 CLOTHING & GM INCOME STATEMENT Dec 2011 % Rm change Turnover 4713 1.4 Cost of sales 2625 78 Gross profit 2 088 159 Other revenue 5 60.0 Expenses 1292 11.3 Store costs 802 16.5 Other operating costs 490 29 Adjusted operating profit 801 23.6 Ad
Slide 52: Food Income Statement
WHL WOOLWORTHS HOLDINGS LIMITED ADDITIONAL INFORMATION 52 FOOD INCOME STATEMENT Turnover Cost of sales Gross profit Other revenue Expenses Store costs Other operating costs Adjusted operating profit Adjusting items Store staff restructuring costs Transaction costs Operating profit Gross profit margi
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Slide 54: Store Numbers
WHL WOOLWORTHS HOLDINGS LIMITED ADDITIONAL INFORMATION 54 STORE NUMBERS Woolworths Corporate Franchise - SA Franchise - Engen Franchise — International Full line Clothing Food Engen Country Road Australasia South Africa Witchery * From June 2012 Projected Projected Projected Dec 2011 Growth Jun 2013
Slide 55: Financial Services Contribution to Sales
WHL WOOLWORTHS HOLDINGS LIMITED ADDITIONAL INFORMATION 55 FINANCIAL SERVICES CONTRIBUTION TO SALES % of sales spent on Woolworths cards Dec 2011 Clothing & GM 28.7% Food 14.1% Aggregate 20.0%
Slide 56: Country Road Balance Sheet
WHL WOOLWORTHS HOLDINGS LIMITED ADDITIONAL INFORMATION 56 COUNTRY ROAD BALANCE SHEET Dec 2011 % A$m change Assets Property, plant and equipment, and 51 >100 intangible assets Trademarks * 1 - Inventories 4) 78.0 Accounts receivable and deferred tax 7 94.1 Cash 27 >100 147 >100 Equity and liabilities
Slide 57: Country Road Income Statement (in Rands)
WHL WOOLWORTHS HOLDINGS LIMITED ADDITIONAL INFORMATION 57 COUNTRY ROAD INCOME STATEMENT (IN RANDS) Dec 2011 % Rm change Turnover 1754 673 Cost of sales 708 60.2 Gross profit 1046 721 Other revenue 3 >100 Expenses 930 65.6 Store costs 725 51.4 Other operating costs 205 >100 Operating profit N19 >100