Woolworths Holdings Limited · JSE:WHL
Woolworths — H1 2005 Earnings Presentation
10 slides from Woolworths's earnings presentation, February 2005
Slide 1: Presentation to investment analysts, February 2005
woolworths holdings limited february 2005 presentation to investment
Slide 2: Agenda
woolworths holdings limited agenda • Highlights • Financial review • Operational review – Clothing and home – Foods – Financial services – Trading space – Country Road • Prospects
Slide 3: Group highlights
woolworths holdings limited group highlights • Revenue up 13.9% - R6.4bn • Operating profit up 16.0% - R638m • Headline earnings per share up 16.2% - 46.7cps • Cash distribution up 42.3% - 18.5cps • Interim cover ratio down from 3.1 to 2.5 times • ROE of 27.4% (2003: 27.2%) • Financial services asse
Slide 4: Trading environment
woolworths holdings limited trading environment • Buoyant trading conditions in SA • Low inflation • Lower interest rates • Emerging market growth • Consumer spending in Australia slowed slightly
Slide 5: Income statement
woolworths holdings limited income statement Dec-04 Dec-03 %chg Rm Rm Revenue 6353.1 5579.7 13.9% Turnover 6016.6 5266.0 14.3% Cost of merchandise -4139.4 -3574.6 15.8% Gross profit 1877.2 1691.4 11.0% Other revenue 336.5 313.7 7.3% Expenses -1575.8 -1455.1 8.3% Operating profit 637.9 550.0 16.0% In
Slide 6: HEPS, DPS and cover
woolworths holdings limited HEPS, DPS and cover 50.0 3.5 3.1 3.1 45.0 2.8 46.7 3 2.7 40.0 2.5 40.2 35.0 2.5 2.5 30.0 33.5 2 25.0 1.5 20.0 20.9 15.0 18.5 1 16.0 15.8 10.0 13.0 10.5 0.5 5.0 6.5 6.5 7.5 0.0 0 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 HEPS DPS Cover
Slide 7: Balance sheet
woolworths holdings limited balance sheet Dec-04 Dec-03 Rm Rm %chg Assets Property, plant & equipment 1259.8 1145.1 10.0% Export partnerships 164.4 177.8 -7.5% Inventory 801.4 684.9 17.0% Financial services assets 3326.2 2534.7 31.2% Accounts receivable & other 817.7 707.5 15.6% Cash 170.9 201.1 -15
Slide 8: Cash flow
woolworths holdings limited cash flow Dec-04 Dec-03 Rm Rm Cash inflow from trading - retail 494.8 460.2 Net interest received 225.5 212.4 Working capital movements -118.1 -67.5 Increase in borrowings 407.1 266.2 1009.3 871.3 Utilised by: Tax paid -170.3 -175.4 Distributions paid -221.8 -159.2 Capex
Slide 9: Cash flow (cont)
woolworths holdings limited cash flow (cont) cash applied to financial services assets: Personal R456.4m Loans R95.7m Visa WW R57.8m Card capex: R302.9m Retail R135.4m R207.9m Other R13.9m IT R58.5m
Slide 10: Return on equity/WACC
woolworths holdings limited return on equity/wacc 30% 25% 19.0% 20% 17.5% 16.3% 13.7% 13.7% 15% 12.4% 10% 5% 11.6% 12.9% 18.3% 23.7% 25.7% 27.4% 0% Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Dec-04 ROE WACC