Woolworths Holdings Limited · JSE:WHL
Woolworths — ESG Presentation (September 2014)
32 slides from Woolworths's sustainability presentation, September 2014
Slide 1: Good Business Journey
GOOD BUSINESS JOURNEY September 2014
Slide 2: Agenda
Agenda 1. Strategic Focus 2. WHL Investment case 3. Strategic Risks 4. GBJ by numbers 5. WHL Group approach 6. The Business case 7. Collaboration: Water case study
Slide 3: Strategic Focus
STRATEGIC FOCUS CON AUME wwe BUILD STRONGER, MORE PROHTABLE, CUSTOMER RELATIONSHIPS BE A LEADING FASHION RETAILER IN THE SOUTHERN HEMISPHERE BECOME A BIG FOOD BUSINESS BECOME AN OMNI-CHANNEL BUSINESS EXPAND INTO AFRICA SIMPLE, CONVENIENT AND REWARDING HNANCIAL SERVICES DRIVE SYNERGIES AND EFFICIENCI
Slide 4: Good Business Journey
GOOD BUSINESS JOURNEY 2020 ¢ Key focus areas for a diversified Southern Hemisphere retailer? oN OWA WARW N= Ethical trade Sustainable farming and sourcing of raw materials Scarce water resources Energy efficiency and security Reducing waste across Our business & helping our customers do the same Con
Slide 5: Measurement and integration
Measurement and integration • Set 1-5 year targets across all business units • Revised during 2011, with new targets through to 2015 • Weightings and prioritisations assigned to all 200+ targets • Measure progress twice per year • Single score for whole business, each business unit, and key focus ar
Slide 6: Woolworths Investment case
Woolworths Investment case Trusted brands and customer resilience • Key focus on aspirational LSM 8 – 10 customers • Strong and growing loyalty programme with 71% of non-cash sales tracked, CRG:84% Retail Presence • Extensive and growing store footprint • All categories can be purchased on-line (CRG
Slide 7: Woolworths Investment case
Woolworths Investment case Financial Performance Operations and supply chain • Centralised operating and distribution (cold chain integrity) • Long standing partnerships with suppliers • Well developed sourcing strategy with Southern hemisphere economies of scale Employees • Committed to diversity a
Slide 8: Woolworths Investment case
Woolworths Investment case Business Resilience • Defensive food and clothing product mix and geographic hedge • Opportunities to further penetrate market segment Woolworths Financial Services • High-quality assets derived from world-class risk management and operating procedures – improved customer
Slide 9: Woolworths Investment case
Woolworths Investment case Country Road Group • Market leader in the Australian premium retail apparel sector • Scale achieved through David Jones acquisition Governance • Key focus on King III principles • Deep experience at board level with strong sub-committees • First place in Reputation Institu
Slide 10: Commodity and supply chain risk
Commodity and supply chain risk
Slide 11: Potential 2020 issues through the eyes of customers
WOOLWORTHS POTENTIAL 2020 ISSUES THROUGH THE EYES OF CUSTOMERS
Slide 12: Numbers
J NUMBERS
Slide 13: GBJ by numbers
GBJ BY NUMBERS 58% of our food products and 60% of our clothing products now have a Good Business Journey attribute 48% our clothing products demonstrate water and energy saving attributes for our customers Over 98% of our qualifying produce suppliers are part of our Farming for the Future - saving
Slide 14: GBJ by numbers: Waste
WOOLWORTHS GBJ BY NUMBERS WASTE 231 packaging improvements were made during the year Woolworths was the 1ST major South African retailer to begin using post-consumer recycled plastic in foods packaging, using 30% rPET (recycled plastic bottles) in ready-to-eat sandwiches containers, now also rHDPE 4
Slide 15: GBJ by numbers: Carbon & Energy
WOOLWORTHS GBJ BY NUMBERS CARBON & ENERGY We've reduced energy by almost 38% from our 2004 benchmark We’ve installed automated lighting in alll stores We've opened 15 stores that meet platinum green store status We have 48 sites that meet green store status We have 2@ co2 refrigeration installations
Slide 16: GBJ by numbers: People
GBJ BY NUMBERS PEOPLE We achieved a L@ vel 3 BBBEE status this year Woolworths has intensified enterprise development support to over 51 blackowned businesses in the Woolworth supply chain We've donated some R ‘28m of our surplus clothing to the Clothing Bank last year to make a difference to the li
Slide 17: Social contribution
WOOLWORTHS SOCIAL CONTRIBUTION Social contribution Rm WW Trust 73 Myschool 52 MTD 4 Surplus food 424 IMAGINE _ Surplus clothing 28 RHI Ss Cause-related marketing 2.3 Total 518.3
Slide 18: Update for 2014
WOOLWORTHS UPDATE FOR 2014 « Cost recoveries for water and electricity R16.5m (2 years) e Energy efficiency savings corporate buildings R222m 14 years) e Water efficiency savings R2m ° Shift to e-statements (paper and postage savings) R14™m e Paper savings/postage corporate buildings Rim e RCG recyc
Slide 19: Key future GBJ focus areas
KEY FUTURE GBJ FOCUS AREAS SHORT/MEDIUM TERM – SUSTAINABLE COTTON – SUSTAINABLE DENIM – SOCIAL AND ENTERPRISE DEVELOPMENT – OUR GREEN FACTORIES LONG TERM – DETOX VISION
Slide 20: RE:Cycled denim
WOOLWORTHS RE:CYCLED CYCLE mam PLASTIC BOTTLES GO INTO EVERY PAIR OF RE:CYCLED DENIM FASHION WITH A DIFFERENCE RE:DENIM — JOIN OUR JOURNEY TO BE THE MOST SUSTAINABLE DENIM BRAND IN THE SOUTHERN HEMISPHERE
Slide 21: Slide 21
Slide 22: GBJ strategy
GBJ strategy Our key focus areas are aligned with WHL’s Good Business Journey Key focus areas: Ethical trade Sustainable farming and sourcing of raw materials Scarce water resources Energy efficiency Reducing waste across the business and helping customers to do the same Contributing to social devel
Slide 23: WFS
WFS - GBJ scorecard - Sustainability Committee - Operational management – energy, water, waste - CSI - E-statements
Slide 24: Africa
Africa - New GBJ scorecard - Metering on line - CSI, Donation of surplus Food and clothing to charity - Reusable bags - Recycling
Slide 25: Country Road Group sustainability
- Supplier code of conduct - 30% reduction greenhouse gas emission by end of 2016, also focus on water and waste - Signatories to Australian Packaging Covenant - Engage employees and customers - Report performance (CDP, etc) - National Breast Cancer Foundation
Slide 26: The business case
The business case • Preservation of resources • Brand differentiation – customer research • Cost saving and operational efficiencies – R269m saved to date • Risk management • Product innovation • Employee attraction and retention – People survey • Growing commitment from institutions
Slide 27: Stakeholders and Partnerships
• Dairy Stakeholders and • Beef Partnerships • Seafood • Textiles • Carbon strategy • Water • Research
Slide 28: Water
WOOLWORTHS WATER Head office municipal water consumption has dropped by 43% since we're tapping into the underground water supply Stores 34% relative reduction in water use to date DC’s continue to make major water reductions 2014 2013 Head office (kl) 22 224 23 463 DC’s {kl) 62 582 162 849 Stores (
Slide 29: Collective catchment action opportunities
Collective catchment action opportunities • 1. Securing the valuable water information being gathered in the project: alignment with BOCMA water quality monitoring. • 2. Information sharing and knowledge transfer: Web‐based tool in collaboration with BOCMA ( • 3. Prince Alfred’s Hamlet water quality
Slide 30: Water Balance Programme
Water Balance Programme • Woolies’ operational water use translates to 313 ha of alien veg. • WB will clear 160ha in 2 catchments (Berg & Palmiet) by 2015. • 50ha of which have already been cleared. • Thus far 1 763 person days of work created & 130 788kl “replenished”
Slide 31: Recognition
Recognition • International Responsible Retailer of the Year 2012, 2010 and 2008, finalist 2009, 2013, 2014 at World Retail Awards • Woolworths has been included in the Dow Jones Sustainability Index (DJSI) for the last 3 years • JSE SRI index inclusion • Finalist in the 2013 International Sustainab
Slide 32: Questions?
WOOLWORTHS Questions?
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