Woolworths Holdings Limited · JSE:WHL
Woolworths — FY2025 Earnings Presentation
67 slides from Woolworths's earnings presentation, Sep 1, 2025
Slide 1: Woolworths Holdings Annual Results FY25
H OLDIN H S G T S R L O IM LW IT WOO ED ANNUAL OD R E S U LT S GRO F Y2 5 GO W IN R G O O F UR C E DIFFEREN
Slide 2: Presentation Outline
PRES E NTATI O N O UTLI N E 01 02 03 04 OVERVIEW OF FINANCIAL STRATEGIC Q&A THE YEAR OVERVIEW UPDATE AND OUTLOOK
Slide 3: Overview of the Year
OVERVIEW OF THE YEAR ROY BAGATTINI GROUP CEO
Slide 4: Overview of the Year
OVERVIEW OF THE YEAR Continued strong performance in Food and solid H2 result in FBH, offset by weaker performance in Country Road Group • A challenging year due to macro-economic headwinds and the impact of short-term business disruption • Group turnover and concession sales +6.8% | aEBIT –10.9% |
Slide 5: We have completed the heavy lifting
WE HAVE COMPLETED THE “HEAVY LIFTING” AND NOW HAVE THE FOUNDATIONAL CAPABILITIES, AND OPTIMAL STRUCTURES AND PROCESSES, TO DRIVE LONG-TERM PROFITABLE, SUSTAINABLE GROWTH
Slide 6: Recognised for purpose-led excellence
RECOGNISED FOR “PURPOSE-LED EXCELLENCE, A STEADFAST COMMITMENT TO SUSTAINABILITY, SOCIAL IMPACT, AND BUILDING A BETTER AFRICA” BRAND AFRICA AWARDS
Slide 7: The Strength of Our Woolworths Brand
THE STRENGTH OF OUR WOOLWORTHS BRAND Our loved and trusted brand, anchored in leading quality, innovation and sustainability, has been built over decades and is our strongest asset ACKNOWLEDGED RECOGNISED AS THE AMONG THE TOP NAMED ONE OF AS THE MOST “COOLEST GROCERY THREE BRANDS - AND THE WORLD’S M
Slide 8: Our Good Business Journey
OUR GOOD BUSINESS JOURNEY Our Good Business Journey (GBJ) is embedded in everything we do and a key differentiator for us PRIVATE DAY-TO-DAY UN WOMEN LAUNCHED THE EMPOWERMENT MEDICARE INCLUSIVE JUSTICE PRINCIPLES introduced to over INSTITUTE 24,000 of our people – WHL increased score a first-of-its-
Slide 9: Financial Overview
FINANCIAL OVERVIEW ZAID MANJRA GROUP FINANCE DIRECTOR
Slide 10: FY25 Financial Summary
FY25 FINANCIAL SUMMARY • Woolworths South Africa delivered significantly improved performance during the second half, resulting in a creditable result for the full year • CRG result was disappointing – significant organisational change, compounded by tough trading conditions | Impairment of underper
Slide 11: Financial Overview for the Year
FINANCIAL OVERVIEW FOR THE YEAR Strong Food performance and significant H2 recovery in FBH | CRG weighed on overall Group result | Balance sheet remains healthy | ROCE well ahead of WACC Turnover and Adjusted Adjusted Adjusted diluted concession sales EBITDA EBIT HEPS R81.0bn R8.7bn R5.2bn 303.4cps
Slide 12: Segmental Adjusted Earnings
SEGMENTAL ADJUSTED EARNINGS WSA aEBIT growth of +1.5% and aEBITDA growth of +6.8%, offset by CRG underperformance | Group aEBITDA -3.8% vs aEBIT -10.9%, reflecting impact of significant capital investments Rm aEBIT aEBITDA -3.8% 7 000 -10.9% +26.3% excl. IFRS 17 5 829 WSA aEBIT +1.5% transition 5 50
Slide 13: South African Macro Context
SOUTH AFRICAN MACRO CONTEXT Constrained consumer and business environment | Geopolitical factors continue to cause disruption and uncertainty • Weak GDP growth and lack of job creation 15.0 10.0 5.0 • Muted income growth and elevated household debt 0.0 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY
Slide 14: Woolworths SA Sales Performance
WOOLWORTHS SA SALES PERFORMANCE % LY % LY % LY 12 12 11.4 11.0 12 10.6 9.8 9.4 9.1 9 9 9 7.0 6 6 6 4.7 3 3 3 2.5 – – – H1 H2 FY25 H1 H2 FY25 H1 H2 FY25 • Strong sales growth, boosted by • Continued market-share gains • impacted by temporary delays in stock flow H1 accelerating H2 momentum in FBH • C
Slide 15: Woolworths SA Financial Overview – H2 vs H1
WOOLWORTHS SA FINANCIAL OVERVIEW – H2 VS H1 Strong performance in H2, driven by continued momentum in Food and improved FBH H2 Turnover and concession sales Adjusted EBITDA Adjusted EBIT +9.8% to R34.9bn +10.9% to R3.9bn +6.2% to R2.8bn H1 Turnover and concession sales Adjusted EBITDA Adjusted EBIT
Slide 16: Woolworths Food results
Another outstanding result underpinned by consistent market share gains, as we continue to invest in our leading customer proposition Sector-leading comp sales growth of 7.7% | GP margin gains through targeted promotions and supply chain efficiencies, notwithstanding growing online contribution | H2
Slide 17: Fashion, Beauty and Home results
H2 recovery supported by improved availability and benefits of strategic investments GP margin improved in H2, however full year impacted by higher supply chain costs and increased promotional contribution | Effective cost control | Positive H2 aEBITDA and aEBIT growth of 7.0% and 0.5%, respectively
Slide 18: Woolworths Financial Services results
Continued positive underlying performance supported by market-leading impairment rate Closing book +0.5% excluding legal book sales | Impairment rate of 6.1% remains sector leading | PAT +26.3%, excluding IFRS 17 transition adjustment in prior period Closing book Net interest income R15.0bn R1.9bn +
Slide 19: Australian Macro and Retail Context
AUSTRALIAN MACRO AND RETAIL CONTEXT Challenging macro persists | Cost of living pressures remain | DISCRETIONARY HOUSEHOLD SPENDING (%) 45.0 Ongoing heavy discounting across the sector 40.0 35.0 30.0 • Real GDP growth weakest since 1991–92 (excluding the 25.0 pandemic period) 20.0 15.0 • GDP per cap
Slide 20: Country Road Group Sales Performance
COUNTRY ROAD GROUP SALES PERFORMANCE Sales impacted by challenging retail environment and short-term internal disruption caused by significant organisational restructuring % LY % LY – – (0.3) (2) (2) (4) (4) (4.5) (4.5) (6) (5.4) (6) (6.2) (8) (8) (9.1) (10) (10) H1 H2 FY25 Q3 Q4 H2 • Country Road a
Slide 21: Country Road Group financial performance
Very disappointing financial performance, reflecting the impact of challenging macro and internal restructuring Major reconfiguration of operating model | GP margin impacted by currency and increased discounting | Impairment of A$77.9m Turnover Gross profit margin Adjusted EBITDA A$1 056.6m -5.4% on
Slide 22: Capital Expenditure
CAPITAL EXPENDITURE Significant focus on investing in growth-enabling initiatives Investment in multi-year foundational and growth projects, including value chain capabilities in FBH and supply chain capacity in Food | Store network – expansion, modernisation and Next Generation formats | Technology
Slide 23: Group Balance Sheet
GROUP BALANCE SHEET Balance sheet remains healthy, with net borrowings held steady year-on-year • Balance sheet supports investments in Net borrowings ROCE future growth • Sale of property in Australia for R2.6bn R5.6bn WSA net debt: R7.7bn | Australia 16.4% 18.7% LY net cash: A$180m | R5.6bn LY WAC
Slide 24: Cash Flow
CASH FLOW Positive free cash flow of R1.9bn | Healthy cash conversion at 83% | Higher working capital investment driven by inventory | Bourke Street property sale funds strategic capex, working capital investment and share scheme purchases Rm 9 000 8 424 190 (1 267) 6 000 (1 580) (551) (891) 3 000 1
Slide 25: FY26 First Seven Weeks Trading and Outlook
FY26 FIRST SEVEN WEEKS TRADING AND OUTLOOK FOOD • +6.9% sales growth • H1 price movement expectation 4.5% - 5.5% • Net space planned at ~2.8% increase FBH • +8.3% sales growth • H1 price movement expectation 4.5% - 5.5% • Net space planned at ~1.4% reduction CRG • +1.2% sales growth • Net space plan
Slide 26: Strategic Update and Outlook
STRATEGIC UPDATE AND OUTLOOK ROY BAGATTINI GROUP CEO
Slide 27: Our Strategic Journey and Progress
REMINDER: OUR STRATEGIC JOURNEY AND PROGRESS We have made significant progress along our multi-step strategic journey, shifting from “Fix, Strengthen and Reposition” to “Optimise, Invest and Grow” FASHION BEAUTY HOME CRG FOOD 1 2 3 FIX, STRENGTHEN, OPTIMISE, INVEST EVALUATE AND REPOSITION AND GROW
Slide 28: Key Sources of Growth
KEY SOURCES OF GROWTH Having strengthened our foundations, we are now shifting our focus to growing our difference...for good 1 PROTECT AND GROW OUR CORE 2 3 EXPAND LEAD IN FOR MORE CUSTOMER EXPERIENCE GROWING OUR DIFFERENCE FOR GOOD
Slide 29: Australia – Sequenced 4-Step Plan
AUSTRALIA – SEQUENCED 4-STEP PLAN After successfully concluding the sale of David Jones, and then operationally separating DJ from CRG, we have now completed the reconfiguration of CRG as a standalone, ‘House of Brands’ business FY2021 FY2023 FY2024 FY2025 PHASE ONE PHASE TWO PHASE THREE PHASE FOUR
Slide 30: Country Road Group: Strategic Update
COUNTRY ROAD GROUP: STRATEGIC UPDATE Having successfully concluded the sale and separation of David Jones, we have now completed the reconfiguration of CRG as a standalone “House of Brands” business STRATEGIC INITIATIVES PROGRESS UPDATE • Reconfiguring end-to-end operating model to enable • New oper
Slide 31: Country Road Group House of Brands
COUNTRY ROAD GROUP “HOUSE OF BRANDS” An aspirational Australian women’s fashion brand that unites a love of design with a contemporary view on sophisticated style. Designed for women and men who appreciate the beauty of simple, One of Australia’s most iconic lifestyle sophisticated collections that
Slide 32: F|B|H: Fashion Turnaround
F | B | H: REMINDER - FASHION TURNAROUND We have completed our two-phase turnaround journey, improving both our product proposition and availability PHASE 1 (“ART”) PHASE 2 (“SCIENCE”) FOCUSED ON FOCUSED ON IMPROVING IMPROVING UNDERLYING PRODUCT AVAILABILITY, FINANCIAL HEALTH OF ENABLED BY OUR VCT F
Slide 33: F|B|H: Strategic Update
F | B | H: STRATEGIC UPDATE We have fixed and strengthened our F|B|H business and are now shifting our focus to driving sustainable, profitable growth STRATEGIC INITIATIVES PROGRESS UPDATE • Improving availability through Value Chain Transformation • Value Chain Transformation largely completed • Re
Slide 34: F|B|H: Value Chain Transformation Progress Update
F | B | H: VALUE CHAIN TRANSFORMATION PROGRESS UPDATE We have made significant progress in our Value Chain Transformation R1.5BN INVESTED OVER RFID ROLLED OUT ACROSS THE FULL PORTFOLIO – ON-SHELF AVAILABILITY NOW >90% THE PAST 3 YEARS COMPLETED TRANSPORT SYSTEMS AND TOOLS, OPTIMISATION AND INCLUDING
Slide 35: We are clear on what we stand for
WE ARE CLEAR ON WHAT WE STAND FOR: THE PREFERRED BRAND FOR OUR CUSTOMERS, OFFERING THE MOST WANTED, BEST-IN-CLASS QUALITY ESSENTIALS AND STYLISH “GO-TO” PIECES FOR “EVERYDAY ELEVATED” LIVING
Slide 36: WBeauty Manufacturing Plant
WBEAUTY MANUFACTURING PLANT
Slide 37: What Sets Our Food Business Apart
WHAT SETS OUR FOOD BUSINESS APART The “holy grail”: the sweet spot which balances giving our customers the best overall proposition in the market, and our shareholders the highest return on capital in the sector • Unmatched capability in BEST BEST food science and technology for customers for shareh
Slide 38: Food: Strategic Update
FOOD: STRATEGIC UPDATE We will continue to strengthen our “holy grail” whilst protecting and growing our core, and expanding our business for more STRATEGIC INITIATIVES PROGRESS UPDATE • Improving on-shelf availability | Amplifying trusted value • On-shelf availability now consistently at >95% | Inc
Slide 39: Food Increased Market Place Presence
FOOD INCREASED MARKET PLACE PRESENCE We have increased our share of voice in the market to tell our unique stories and highlight our difference... HANDCRAFTED and MADE by OUR EXPERTS
Slide 40: Food Increased Market Place Presence
FOOD INCREASED MARKET PLACE PRESENCE ...and also expanded our presence across formats and channels CONTINUED MOMENTUM IN ON-DEMAND LAUNCHED “WOOLIES DASH RAISING THE BAR THROUGH ROLLOUT OF OPENED PLATFORM, DELIVERING 100 TH AFTER DARK”, >40% “NEXT IN PARTNERSHIP WITH FORECOURT UBEREATS, NOW IN SALES
Slide 41: Midrand Distribution Centre (Gauteng)
MIDRAND DISTRIBUTION CENTRE (GAUTENG)
Slide 42: Woolworths Ventures
WOOLWORTHS VENTURES Our WCafe, coffee Our curated selection pods and hatches, and of alcoholic beverages our NowNow format, and an elevated shopping elevate and leverage our experience providing a FOOD SERVICES Food Retail business, whilst WCELLAR premium drinks destination bringing new customers ~3
Slide 43: Woolworths Ventures: Strategic Update
WOOLWORTHS VENTURES: STRATEGIC UPDATE Woolworths Ventures – our “growth accelerator” – focuses exclusively on unlocking our strategic growth opportunities with greater speed and agility STRATEGIC INITIATIVES PROGRESS UPDATE • Building a big Food Services business anchored in and • Delivered double-d
Slide 44: Leading in Customer Experience
LEADING IN CUSTOMER EXPERIENCE We are doubling-down on our drive to become a world-class omni-channel retailer, ensuring that our customers remain at the centre of everything we do • Spencer Sonn appointed into newly-created role of Chief Customer Officer • Data and Analytics Centre of Excellence en
Slide 45: Next Generation Stores
“NEXT GENERATION” STORES
Slide 46: We continue to invest in our exceptional team
WE CONTINUE TO INVEST IN OUR EXCEPTIONAL TEAM OF PEOPLE FROM TRAINING AND DEVELOPMENT, TO PAYING A JUST “WOOLIES WAGE” TO PROVIDING COMPREHENSIVE HEALTHCARE. THIS ALLOWS US TO ATTRACT AND RETAIN THE BEST TALENT, ENABLING A LEADING CUSTOMER EXPERIENCE. IT MAKES GOOD BUSINESS SENSE… . AND IT IS THE RI
Slide 47: Ongoing Refinement of Capital Allocation
ONGOING REFINEMENT OF CAPITAL ALLOCATION 1 2 3 4 OUR STRATEGY INFORMS OUR CAPITAL ALLOCATION ONGOING EVALUATION DECISIONS CENTRALISED OUR CAPITAL ALLOCATION OF OUR INVESTMENT (“TOP DOWN”) FRAMEWORK PROMOTES DECISIONS (THROUGH PRIORITISATION DISCIPLINED AND POST-IMPLEMENTATION 1 2 TRANSPARENT CAPITAL
Slide 48: WHL Capital Decision Hierarchy
WHL CAPITAL DECISION HIERARCHY OPERATING PRODUCTIVITY + CAPITAL PRODUCTIVITY CASH GENERATED FROM OPERATIONS R8.4BN DIVESTMENTS CASH CONVERSION RATIO: 83% R13.6BN OF NET PROCEEDS REALISED SINCE FY17, INCLUDING R2.6BN IN FY25 BALANCE SHEET STRENGTH ORDINARY DIVIDENDS MAINTENANCE CAPEX 1 Net debt/EBITD
Slide 49: Outlook
OUTLOOK World-class Food business will remain engine room for value creation, with Apparel presenting significant opportunity to unlock value as a Group • Macro-environment likely to remain constrained across both geographies • Heavy lifting largely behind us • New and strong leadership team in plac
Slide 50: Thank You
To our people To our customers for their passion, for their loyalty commitment and and trust hard work THANK YOU Thank you for To our partners being part of the and suppliers for Woolies difference their dedication and making it and support exceptional!
Slide 51: Appendix
APPENDIX
Slide 52: Appendix Contents
APPENDIX CONTENTS • GROUP PERFORMANCE • GROUP INCOME STATEMENT • RECONCILIATION OF ADJUSTED HEPS • GROUP BALANCE SHEET • GROUP NET DEBT • AUSTRALIAN BALANCE SHEETS • INCOME STATEMENTS BY BUSINESS • IFRS 16 | DEPRECIATION AND AMORTISATION • TRADING SPACE | STORE LOCATIONS
Slide 53: Group Performance
GROUP PERFORMANCE H2 Full year Turnover and concession sales R40.7bn R81.0bn +6.4% on LY +6.1% on LY Adjusted PBT R1.6bn R3.7bn -15.4% on LY -18.4% on LY Adjusted EBIT R2.4bn R5.2bn -7.4% on LY -10.9% on LY Adjusted EBITDA R4.2bn R8.7bn -0.9% on LY -3.8% on LY Adjusted diluted HEPS 303.4cps -19.2% o
Slide 54: Group Income Statement
GROUP INCOME STATEMENT 52 weeks 52 weeks Jun 2025 Jun 2024 % Rm Rm change Strong Food growth offset by weaker Turnover and concession sales 80 989 76 360 6.1 apparel contribution Gross profit 27 279 27 027 0.9 Higher promotional activity in apparel, Adjusted EBITDA 8 679 9 019 (3.8) particularly CRG
Slide 55: Reconciliation of Adjusted HEPS
RECONCILIATION OF ADJUSTED HEPS 52 weeks 52 weeks Jun 2025 Jun 2024 % cps cps change EPS 273.4 277.3 (1.4) Basic earnings R2 443m (R2 486m LY) Non-core HEPS adjustments (post-tax) (1.3) 7.0 • R792m Profit on sale of property (Australia) Abnormal capital items (pre-tax) 19.7 68.0 Profit on disposal o
Slide 56: Group Balance Sheet
GROUP BALANCE SHEET Constant Jun 2025 Jun 2024 currency Rm Rm % change Assets Property, plant and equipment, Investment in capacity and capability, offset investment property and intangible assets 15 993 17 408 (7.3) by Bourke Street property sale and CRG Right-of-use assets 7 376 7 902 (5.3) impair
Slide 57: Group Net Debt
GROUP NET DEBT Jun 2025 Jun 2024 WHL Net debt (Rm) 5 626 5 569 Interest-bearing debt 9 349 6 686 Net cash and cash equivalents (3 723) (1 117) Unutilised committed facilities – Group 4 511 5 142 WSA Net debt (Rm) 7 734 6 050 Interest-bearing debt 8 764 6 686 Net cash and cash equivalents (1 030) (63
Slide 58: Australian Balance Sheets
AUSTRALIAN BALANCE SHEETS Jun 2025 Jun 2024 A$m A$m Country Country Road Osiris Road Osiris Group Holdings Total Group Holdings Total Assets Property, plant and equipment and investment property 99 – 99 119 140 259 Intangible assets* 240 – 240 319 – 319 Right-of-use assets 244 – 244 277 – 277 Invent
Slide 59: Woolworths Food income statement
Another outstanding result underpinned by consistent market share gains as we continue to invest in our leading customer proposition 52 weeks 52 weeks H2 2025 H2 Jun 2025 Jun 2024 % Rm % Rm Rm change Turnover and concession sales 26 874 10.6 52 389 47 199 11.0 Gross profit margin 25.0% 24.9% 24.7% E
Slide 60: Fashion, Beauty and Home income statement
H2 recovery underpinned by improved availability and benefits of strategic investments 52 weeks 52 weeks H2 2025 H2 Jun 2025 Jun 2024 % Rm % Rm Rm change Turnover and concession sales 7 599 7.0 15 394 14 708 4.7 Gross profit margin 48.3% 47.3% 48.5% Expenses 2 808 7.0 5 639 5 333 5.7 Adjusted EBIT 8
Slide 61: Woolworths Financial Services income statement
Continued positive underlying performance supported by market-leading impairment rate Jun 2025 Jun 2024 % Rm Rm change Average total financial services assets 15 240 15 796 (3.5) % % Income statement to book to book Net interest income 1 865 12.2 1 932 12.2 (3.5) Impairment charge 937 6.1 1 103 7.0
Slide 62: Country Road Group income statement
Very disappointing financial performance reflecting the impact of challenging macro and internal restructuring 52 weeks 52 weeks H2 2025 H2 Jun 2025 Jun 2024 % A$m % A$m A$m change Turnover 500.9 (4.5) 1 056.6 1 116.8 (5.4) Gross profit margin 53.7% 56.4% 60.3% Expenses 304.5 (1.7) 623.6 633.1 (1.5)
Slide 63: FY25 Group Segmental Income Statement
FY25 GROUP SEGMENTAL INCOME STATEMENT Woolworths Country Road Food FBH Logistics WFS Group Treasury Intragroup Group Jun 2025 Rm Rm Rm Rm Rm Rm Rm Rm Turnover and concession sales 52 389 15 394 767 – 12 439 – – 80 989 Concession sales (1 161) (291) – – – – – (1 452) Turnover 51 228 15 103 767 – 12 4
Slide 64: FY24 Group Segmental Income Statement
FY24 GROUP SEGMENTAL INCOME STATEMENT Woolworths Country Road Food FBH Logistics WFS Group Treasury Intragroup Group Jun 2024 Rm Rm Rm Rm Rm Rm Rm Rm Turnover and concession sales 47 199 14 708 736 – 13 717 – – 76 360 Concession sales (991) (210) – – – – – (1 201) Turnover 46 208 14 498 736 – 13 717
Slide 65: IFRS 16 | Depreciation and Amortisation
IFRS 16 | DEPRECIATION AND AMORTISATION Group WSA CRG Lease liabilities Rm Rm A$m Jun 2024 10 304 6 284 341 Jun 2025 9 816 6 313 308 Average lease terms (years) Jun 2024 4.1 5.2 2.0 Jun 2025 4.0 4.8 2.2 With no options: Jun 2024 3.0 3.5 2.0 With no options: Jun 2025 3.1 3.5 2.0 Right-of-use assets J
Slide 66: Trading Space | Store Locations
TRADING SPACE | STORE LOCATIONS Projected Projected Projected Jun 2024 % Jun 2025 % Jun 2026 % Jun 2027 % Jun 2028 000m2 change 000m2 change 000m2 change 000m2 change 000m2 TRADING SPACE Woolworths Fashion, Beauty and Home 431.1 (2.3) 421.8 (1.4) 416.0 0.2 416.8 0.3 418.2 South Africa 384.3 (2.6) 37
Slide 67: Disclaimer
DISCLAIMER Shareholders are advised that the information in this presentation has not been reviewed and reported on by Woolworths Holdings’ external auditors and it does not constitute a profit forecast. Woolworths Holdings has taken reasonable efforts to ensure the accuracy and completeness of the