Slide 1: Company Results Full Year 2015
For personal use only COMPANY RESULTS FULL YEAR 2015 28 August 2015
Slide 2: Overview
Overview • FY15 NPAT before significant items1 in line with the prior year at $2.45b, with FY dividend up 1.5% to 139c • Australian Food, Liquor & Petrol EBIT growth of 2.1%2 reflecting subdued sales growth in H2’15 For personal use only • We are resetting our Australian Food business to ensure a su
Slide 3: Results — Full Year 2015
Results — Full Year 2015 For personal use only Total Group Total Group Before Significant Items1 Sales $60.7b â 0.2% $60.7b â 0.2% Earnings Before Interest and Tax (EBIT) $3,322.5m â 12.0% $3,748.4m â 0.7% Net Profit After Tax (NPAT) $2,146.0m â 12.5% $2,453.3m á 0.1% Earnings Per Share 170.8¢
Slide 4: Group EBIT
Group EBIT For personal use only $m FY15 FY14 Change Before Significant Items1 Australian Food, Liquor & Petrol 3,439.8 3,368.0 2.1% New Zealand Supermarkets (AUD) 303.2 271.4 11.7% New Zealand Supermarkets (NZD) 326.0 309.8 5.2% General Merchandise 114.2 152.9 (25.3)% Hotels 234.5 275.4 (14.9)% Hom
Slide 5: Divisional highlights
For personal use only Divisional highlights
Slide 6: Australian Food, Liquor & Petrol
Australian Food, Liquor & Petrol Food & Liquor Trading Performance For personal use only FY15 FY14 Change • Food & Liquor (F&L) sales for the year were $42.1b, +2.3% with comp sales +0.7%. As previously advised, F&L sales performance Before Significant Items in Q4’15 was disappointing, with Easter a
Slide 7: Progress Against Australian Food Plans
Progress Against Australian Food Plans Progress to date More to do For personal use only • Firmly embedded the customer at the core of our • Walk the talk on putting customers first - from decision making store back through the support office • New leadership team in place • Better communicate our imp
Slide 8: Progress Against Petrol Plans
Progress Against Petrol Plans For personal use only Petrol Trading Performance Progress to date • Petrol sales for the year were $5.6b, -20.3% on the • Invested in forecourt improvements at more than previous year (volumes -13.1%), primarily due to 326 of our sites to improve the customer changes to
Slide 9: Progress Against Liquor Plans
Progress Against Liquor Plans Progress to date For personal use only Woolworths Liquor Group • Continued growth and market share gains in a low growth market environment with Liquor sales of $7.7b, +4.2% on the prior year Sales $b • Balanced growth across our formats with Dan Murphy’s (Destination),
Slide 10: New Zealand Supermarkets
New Zealand Supermarkets Trading Performance For personal use only NZD FY15 FY14 Change • Sales for the year were NZ$5.9b, +2.5% (+5.4% in AUD). Comp sales increased 0.9% benefiting from Before Significant Items our strategy to invest in lower prices and as we cycled Sales ($m) 5,878 5,737 2.5% a we
Slide 11: Progress Against NZ Supermarkets Plans
Progress Against NZ Supermarkets Plans For personal use only Progress to date More to do • We delivered better prices by substantially • Implement same customer metrics and focus as increasing the number of product ranges on Australian Food Price Lockdown and Price Drop (our price down • Continue to
Slide 12: General Merchandise
General Merchandise Trading Performance For personal use only • FY15 sales were $4.1b, -5.7% with comp store sales -7.2%. Sales FY15 FY14 Change continue to be impacted by the ongoing BIG W transformation plan. As part of the transformation, we introduced a new merchandising Before Significant Items
Slide 13: Progress Against General Merchandise Plans
Progress Against General Merchandise Plans For personal use only Progress to date More to do • Strong progress in clearance of unproductive • On track to have completed clearance activity before inventory through Drop Zone with c.80% cleared Christmas to date • Planning a further 67 Party stores in
Slide 14: Hotels
Hotels Trading Performance For personal use only • Excluding the impact of the additional Victorian gaming tax FY15 FY14 Change which came into effect in May 2014, Hotel sales increased 1.5% and comparable sales increased 0.9% Sales ($m) 1,475 1,472 0.2% • Sales for the year were $1,475m, an increase
Slide 15: Progress Against Hotel Plans
Progress Against Hotel Plans For personal use only Progress to date More to do • Rollout of voluntary pre-commitment • Voluntary pre-commitment functionality to be completed functionality gathered pace with the NSW in Queensland and Victoria by December 2015 rollout completed in June • More key refu
Slide 16: Home Improvement
Home Improvement Trading Performance For personal use only FY15 FY14 Change • Masters sales for the year were $930m, +23.7%. We opened our 58th store shortly before year end. At the end of FY15, Before Significant Items Masters stores had traded on average for 2 years Sales ($m) • First store with t
Slide 17: Progress Against Home Improvement Plans
Progress Against Home Improvement Plans For personal use only Progress to date More to do • 11 stores in new format at the end of the • Targeting c.50% of fleet in new format by end of FY16 financial year including 9 new stores and • High potential stores opening in Penrith and Northmead, 2 retrofit
Slide 18: Financial update
For personal use only Financial update
Slide 19: Balance Sheet
Balance Sheet • Closing inventory increase was driven by new store openings, in particular 30 Australian For personal use only $m FY15 FY14 Change Supermarkets (net), nine Masters and 41 Liquor Inventory 4,872.2 4,693.2 3.8% (net) stores and acquisitions in Liquor and Home Trade Payables (5,040.0) (
Slide 20: Cash Flow
Cash Flow $m FY15 FY14 Change • Cash flow from operating activities before interest and tax was $4,711.1m, and was impacted by: For personal use only EBITDA – Total1 4,464.9 4,771.5 (6.4%) Net increase in inventory (161.0) (420.9) • Approximately $100m significant item cash outflows Net increase in
Slide 21: Capital Expenditure
Capital Expenditure For personal use only FY15 FY14 $m Actual Actual New Stores - excluding Home Improvement (HI) 225 266 Refurbishments - excluding HI 416 312 New Stores and Refurbishments - HI 79 91 Supply Chain, IT, Multi-option and Stay in Business 830 717 Capex (excl Property Development) 1,550
Slide 22: Key Balance Sheet Metrics
Key Balance Sheet Metrics Average Inventory Days Return On Average Funds Employed From For personal use only (Continuing Operations) Continuing Operations Before Significant Items1 Days Percentage Excluding Home Improvement and Excluding Home Improvement incremental global sourced inventory Group 40
Slide 23: Growth in Shareholder Dividend Payments Continued in FY15
Growth in Shareholder Dividend Payments Continued in FY15 For personal use only $b Interim dividend Buy back Final dividend In-specie distribution CAGR: 12.6% 2.2 2.2 0.7 0.5 1.8 1.7 1.7 1.6 1.0 0.3 0.9 0.9 0.9 1.3 0.8 0.7 1.1 0.7 0.9 0.6 0.7 0.5 0.4 0.7 0.7 0.7 0.8 0.8 0.8 0.5 0.6 0.3 0.4 FY06 FY07
Slide 24: Outlook
Outlook For personal use only • At the Investor Day in May we identified significant opportunities for performance improvement within the business. We also identified key challenges to realising that performance. Whilst we have begun to address these challenges, there remains much more to do • As pr
Slide 25: Appendices
For personal use only Appendices
Slide 26: Group Sales
Group Sales For personal use only $m FY15 FY14 Change Australian Food & Liquor 42,132 41,171 2.3% Petrol1 5,632 7,065 (20.3)% Australian Food, Liquor & Petrol1 47,764 48,236 (1.0)% New Zealand Supermarkets (AUD) 5,467 5,186 5.4% New Zealand Supermarkets (NZD) 5,878 5,737 2.5% General Merchandise 4,1
Slide 27: Gross Profit Margin From Continuing Operations Before Significant Items
Gross Profit Margin From Continuing Operations Before Significant Items1 For personal use only Percentage Comments Despite continued investment in prices in both Australian Food & Liquor (-53 bps) and New Zealand Supermarkets (-17 bps), gross margin 27.50 27.11 26.94 (before significant items1) as a
Slide 28: CODB/Sales From Continuing Operations Before Significant Items
CODB/Sales From Continuing Operations Before Significant Items1 For personal use only Percentage Comments CODB (before significant items1) as a percentage of sales increased 42 bps impacted by: • Subdued sales growth • Changes to the Woolworths-Caltex alliance 21.32 Partially offset by: 20.90 20.70 •
Slide 29: Significant Items
Significant Items Total significant items of $425.9m before tax For personal use only $m Reported at Reported at Total ($307.3m after tax and non controlling interests) HY15 June 15 FY15 comprise of: Significant Items • General Merchandise transformation provision of $148.2m before tax primarily rel
Slide 30: Disclaimer
Disclaimer This presentation contains summary information about Woolworths Limited (Woolworths) 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 Australian Securitie
Slide 31: Woolworths Limited
WOOLWORTHS LIMITED i eS