Woolworths Group Ltd · ASX:WOW
Woolworths — Shareholder Meeting (November 2007)
45 slides from Woolworths's shareholder meeting presentation, Nov 16, 2007
Slide 1: For personal use only
For personal use only 0
Slide 2: James Strong, Chairman
For personal use only James Strong Chairman 1
Slide 3: For personal use only
For personal use only 2
Slide 4: Earnings Per Share – up 19.7%
Earnings Per Share – up 19.7% For personal use only 108.8 110 +19.7% 100 90.9 90 +14.8% 79.2 80 70.1 +13.0% Cents 70 60.7 +15.5% 60 +15.6% 50 40 30 20 (1) (1) 2003 2004 2005 2006 2007 REFLECTS STRENGTHENING OF OUR BALANCE SHEET DURING A PERIOD OF MAJOR ACQUISITIONS, INTEGRATION AND BUSINESS CHANGE.
Slide 5: Dividends per share
Dividends per share For personal use only FINAL DIVIDEND 2007: 39c 74 75 INTERIM DIVIDEND 2007: 35c +25.4% 65 59 55 51 +15.7% 45 +13.3% Cents 45 39 +15.4% 35 +18.2% 25 15 5 2003 2004 2005 2006 2007
Slide 6: For personal use only
For personal use only 5
Slide 7: Michael Luscombe, Managing Director and CEO
For personal use only Michael Luscombe Managing Director and Chief Executive Officer 6
Slide 8: Private Label
For personal use only Private Label
Slide 9: Lowering Prices
For personal use only Lowering Prices
Slide 10: Impact of Drought
For personal use only Impact of Drought
Slide 11: Compliance
For personal use only Compliance
Slide 12: Sustainability Strategy 2007
Sustainability Strategy 2007 For personal use only
Slide 13: Climate Change
Climate Change For personal use only Status 3.7 million tonnes CO2e 40% reduction in Target CO2 by 2015 from facilities Strategy • Green stores • Behavioural change • Energy efficiencies • Renewable
Slide 14: Water
Water For personal use only Status Approx 2.2 GL (supermarkets) 200m litres Target reduction a year by 2010 Strategy • Water Wise rollout • Water saving initiatives • Every Drop Counts
Slide 15: Waste
Waste For personal use only Status 140,000 tonnes to landfill ZERO food Target waste to landfill by 2015 Strategy • Expand green waste recycling scheme • Staff education • Phase out polystyrene
Slide 16: Sourcing
Sourcing For personal use only • Education of buyers and decision makers throughout the business • Identification of process gaps and development of corrective strategies • Tailored training for buyers on specific sustainable sourcing issues
Slide 17: Packaging
Packaging For personal use only • Creation of supplier forum for sustainability • Review of Private Label procurement • Implement impact assessment trials for Private Label • Double the use of plastic crates to replace cardboard and foam boxes to 3.4 milion
Slide 18: Green Stores
Green Stores For personal use only 1st Green Store – Rouse Hill 100% - new stores post 09/08 designed to sustainable principles • 25% less energy used • Improved lighting technology • Fuel substitutions • Development of Green star rating for supermarkets
Slide 19: Financials
For personal use only Financials 18
Slide 20: Sales – continuing strong sales growth
Sales – continuing strong sales growth For personal use only 45.0 42.5 40.0 37.7 12.6% 35.0 20.4% 31.4 $ billions 30.0 27.9 12.2% 26.3 25.0 6.1% 9.6% (1) 20.0 15.0 10.0 5.0 - 2003 2004 2005 2006 2007 (1) Increase is based on 52 weeks.
Slide 21: CODB / Sales
CODB / Sales For personal use only Our targeted CODB reduction of 20 basis continues to be achieved 23% when the distorting impacts of Petrol and Hotels are excluded. CODB was also affected by the industrial action in New Zealand. 22% Down 12 pts 21.55% in 2007 Percentage 21.10% 21% 20.73% 20.47% 20
Slide 22: Gross Profit Margin
Gross Profit Margin Up 19 pts For personal use only excluding hotels As expected Gross Margin has improved reflecting improved buying and shrinkage, the success of our Up 29 pts private label offering, the change in sales mix achieved in 2007 26% through the rollback campaigns and a reduction in sup
Slide 23: EBIT – up 22.6% growing faster than sales
EBIT – up 22.6% growing faster than sales For personal use only 2200 2,111 (3) 2000 22.6% (2) 1800 1,722 1600 32.3% (1) $ millions 1400 1,302 1200 1,065 20.5% 946 1000 12.6% 800 13.6% 600 400 200 2003 2004 2005 2006 2007 (1) Includes ALH from 31 October 2004 and MGW from 2 January 2005. (2) Includes
Slide 24: Profit after tax – up 27.5%
Profit after tax – up 27.5% 1,294.0 (3) For personal use only 1,300 +27.5% 1,200 1,100 1,014.6 (2) 1,000 +24.3% $ Million 900 816.2 (1) 800 +18.7% 687.8 700 609.5 +12.8% 600 +16.5% 500 400 2003 2004 2005 2006 2007 (1) Includes ALH from 31 October 2004 and MGW from 2 January 2005. (2) Includes Progre
Slide 25: Shareholder Payouts
Shareholder Payouts For personal use only Franking credits available for distribution = $757m. (after the final dividend) 1000 941 534 893 Buy Back Dividend 791 893 800 548 693 633 693 604 $ millions 600 349 141 538 538 463 400 346 407 346 284 200 243 0 2000 2001 2002 2003 2004 2005 2006 2007 PROFIT
Slide 26: Strong Share Price Performance
Strong Share Price Performance For personal use only 5.0 TSR CAGR 4.5 Jun 2000 - Jun 2007 4.0 WOW 29.2% 3.5 3.0 2.5 2.0 All Ords 14.9% 1.5 1.0 0.5 Jun-2000 Jun-2001 Jun-2002 Jun-2003 Jun-2004 Jun-2005 Jun-2006 Jun-2007
Slide 27: Sales and Earnings Guidance FY08
Sales and Earnings Guidance FY08 For personal use only • We believe we are very well positioned for future growth Sales • For FY08 we expect overall group sales to grow in the range of 7% to 10%. Earnings • We also expect that EBIT will continue to grow faster than sales in FY08. • Net profit after
Slide 28: For personal use only
For personal use only 27
Slide 29: Item 1: Review of Accounts
For personal use only Item 1: Review of Accounts 28
Slide 30: Item 2: Remuneration Report
For personal use only Item 2: Remuneration Report 29
Slide 31: Item 3: Election of Directors
For personal use only Item 3: Election of Directors 30
Slide 32: Item 3a: Election of Directors – Diane Grady
Item 3a: Election of Directors For personal use only Diane Grady
Slide 33: Item 3b: Election of Directors – Ian Macfarlane
Item 3b: Election of Directors For personal use only Ian Macfarlane
Slide 34: Item 3c: Election of Directors – Alison Watkins
Item 3c: Election of Directors For personal use only Alison Watkins
Slide 35: Item 4: Woolworths Long Term Incentive Plan
For personal use only Item 4: Woolworths Long Term Incentive Plan 34
Slide 36: Item 5: Directors’ Fees
For personal use only Item 5: Directors’ Fees 35
Slide 37: Item 6: Adoption of New Constitution
For personal use only Item 6: Adoption of New Constitution 36
Slide 38: Resolution 2: Remuneration Report
Resolution 2: Remuneration Report For personal use only For 494,735,813 93.84% Against 7,633,538 1.45% Open 18,506,476 3.51%
Slide 39: Resolution 3a: Re-election of Diane Grady
Resolution 3a: Re-election of Diane Grady For personal use only For 499,615,831 94.45% Against 4,729,881 0.89% Open 18,361,880 3.47%
Slide 40: Resolution 3b: Election of Ian Macfarlane
Resolution 3b: Election of Ian Macfarlane For personal use only For 501,920,555 94.89% Against 2,240,911 0.42% Open 18,467,230 3.49%
Slide 41: Resolution 3c: Election of Alison Watkins
Resolution 3c: Election of Alison Watkins For personal use only For 501,726,432 94.88% Against 2,375,966 0.45% Open 18,419,405 3.48%
Slide 42: Resolution 4: Long Term Incentive Plan
Resolution 4: Long Term Incentive Plan For personal use only For 473,632,510 91.79% Against 29,306,439 5.68% Open 6,772,789 1.31%
Slide 43: Resolution 5: Director’s Fees
Resolution 5: Director’s Fees For personal use only For 461,209,401 89.38% Against 41,886,895 8.12% Open 6,770,109 1.31%
Slide 44: Resolution 6: New Constitution
Resolution 6: New Constitution For personal use only For 452,918,990 86.02% Against 47,483,174 9.02% Open 19,751,631 3.75%
Slide 45: For personal use only
For personal use only 44