FIVE YEAR SUMMARY PROFIT OR LOSS. Sales. Earnings/(Loss) before interest and tax (EBIT/LBIT) EBIT/(LBIT) to Sales

Transcription

1 PROFIT OR LOSS Sales 53 WEEKS Australian Food 1 36, , , Petrol , , ,793.9 Australian Food Petrol , Endeavour Drinks Group 1 7, , , Australian Food Endeavour Drinks Group , ,031.2 Australian Food, Petrol Endeavour Drinks Group 1, , , ,825.1 New Zeal Food 5, , , , ,599.7 BIG W 1,2 3, , , , ,383.4 Hotels 1, , , , ,468.9 Home Improvement , ,239.3 Unallocated 2, Total continuing operations 55, , , , ,516.4 Home Improvement , , Petrol 3 4, , Consumer Electronics Discontinued operations 3 5, , , Total Group 61, , , , ,158.0 Earnings/(Loss) before interest tax (EBIT/LBIT) Continuing operations before significant items 5 53 WEEKS Australian Food 1 1, , Australian Food Petrol 1, , Endeavour Drinks Group Australian Food, Petrol Endeavour Drinks Group 1, , , ,199.3 New Zeal Food BIG W 1,2 (150.5) (14.9) Hotels Home Improvement (169.0) (138.9) Total trading operations 2, , , , ,751.6 Unallocated 2,4 (154.3) (157.8) (116.1) (104.4) (98.4) Total continuing operations before significant items 5 2, , , , ,653.2 Discontinued operations before significant items 3,5 Home Improvement (218.8) (224.7) - - Petrol Consumer Electronics Total discontinued operations before significant items 3, (101.0) (224.7) Total Group before significant items 5 2, , , , ,655.7 Significant items 5 - (4,013.7) (425.9) - (48.7) Total Group 2,642.9 (1,668.7) 3, , ,607.0 EBIT/(LBIT) to Sales 53 WEEKS Continuing operations before significant items 5 Australian Food Australian Food Petrol 1, Endeavour Drinks Group Australian Food, Petrol Endeavour Drinks Group 1, New Zeal Food BIG W 1,2 (4.18) (0.39) Hotels Home Improvement (11.06) (11.21) Total continuing operations before significant items Discontinued operations before significant items 3,5 Discontinued operations before significant items 3, (1.50) (12.03) Total Group before significant items Total Group 4.33 (2.77)

2 PROFIT OR LOSS DETAIL 53 WEEKS Continuing operations before significant items 5 Sales ($m) 55, , , , ,516.4 Cost of goods sold ($m) (39,546.1) (38,309.3) (42,596.6) (44,295.2) (42,754.9) Gross profit ($m) 15, , , , ,761.5 Gross profit margin Cost of doing business (CODB) ($m) (13,602.9) (12,718.6) (12,242.3) (12,702.4) (12,108.3) CODB margin Selling, general admininstration expenses (excluding, rent, depreciation amortisation) ($m) (10,531.0) (9,769.4) (9,316.2) (9,807.4) (9,378.6) EBITDAR ($m) 5, , , , ,382.9 EBITDAR margin Rent (including fitout rent) ($m) (2,034.3) (1,963.9) (1,951.3) (1,898.7) (1,764.2) EBITDA ($m) 3, , , , ,618.7 EBITDA margin Depreciation amortisation ($m) (1,037.6) (985.3) (974.8) (996.3) (965.5) EBIT ($m) 2, , , , ,653.2 EBIT margin Net financing costs ($m) (179.0) (207.7) (212.9) (218.9) (251.1) Woolworths Notes interest ($m) (14.6) (37.9) (40.4) (41.2) (46.4) Profit before tax significant items 5 ($m) 2, , , , ,355.7 Taxation ($m) (650.4) (677.2) (1,112.8) (1,056.7) (996.6) Profit after tax before significant items 5 ($m) 1, , , , ,359.1 Discontinued operations 3,5 Profit/(loss) after tax before significant items 3,5 ($m) (117.4) (161.5) Group net profit after tax before significant items 5 ($m) 1, , , , ,360.9 Significant items after tax 5 ($m) - (3,753.7) (308.1) - (96.3) Group net profit/(loss) after tax ($m) 1,593.4 (2,347.9) 2, , ,264.6 Non-controlling interests ($m) (59.9) 1, (6.7) (5.2) Profit/(loss) attributable to equity holders of parent entity after tax ($m) 1,533.5 (1,234.8) 2, , ,

3 BALANCE SHEET 53 WEEKS Inventory 4, , , , ,205.4 Accounts payable (5,068.2) (4,809.1) (5,040.0) (4,588.4) (4,080.0) Net investment in inventory (987.8) (250.6) (167.8) Receivables , Or creditors 6 (4,409.9) (5,029.2) (3,123.3) (3,184.9) (3,086.1) Fixed assets investments 8, , , , ,416.1 Net assets held for sale 3 1, Intangible assets 7 6, , , , ,784.3 Total funds employed 8 11, , , , ,373.6 Net tax balances Net assets employed 12, , , , ,798.8 Cash borrowings 9 (2,121.1) (3,413.5) (3,391.3) (3,432.9) (3,602.7) Or financial assets liabilities 6 (24.7) (631.7) (1,179.2) (895.6) Total net assets 9, , , , ,300.5 Non-controlling interests Shareholders' equity 9, , , , ,028.4 Total equity 9, , , , ,300.5 CASH FLOW 53 WEEKS Continuing discontinued operations 3 EBITDA 3,703.8 (592.8) 4, , ,572.5 Movement in net investment in inventory (490.6) Or operating cash flows or non cash 10 (307.5) 4, Net interest paid (234.0) (289.3) (310.3) (338.2) (454.5) Tax paid (668.1) (848.5) (1,055.7) (1,162.5) (977.3) Operating cash flow 3, , , , ,719.9 Payments for property, plant, equipment intangible assets (1,909.8) (1,982.9) (2,172.7) (1,898.7) (1,955.3) Proceeds on disposal of property, plant & equipment, ,008.9 Or investing cash flows (2.1) (20.8) (86.6) (363.6) (255.3) Cash flow from operations after investing activities 1, , , , ,518.2 New shares issued Issue of subsidiary shares to non-controlling interests Movement in gross debt (1,222.4) (365.6) (205.9) (67.3) (527.3) Dividends paid (540.9) (1,184.8) (1,538.6) (1,491.1) (1,396.7) Dividends paid to non-controlling interests (21.5) (32.4) (28.8) (32.0) (20.1) Transactions with non-controlling interests - (12.1) (13.5) - - Effects of exchange rate changes on balance of cash held in foreign currency (0.6) Net cash flow (39.3) (377.4)

4 SHAREHOLDER VALUE ROFE (Pre-tax return on funds employed) WEEKS Group (13.60) Group before significant items Du Pont Analysis 53 WEEKS Continuing discontinued operations before significant items 5 EBIT to sales Service burden Tax burden Asset turn Financial leverage Return on equity Earnings per share 53 WEEKS Ordinary share price closing ($) Market capitalisation ($m) 32, , , , ,018.7 Weighted average shares on issue (m) 1, , , , ,237.4 Basic EPS 17 (cents per share) (97.7) Basic EPS before significant items 5,17 (cents per share) Basic EPS continuing operations before significant items 5,17 (cents per share) Interim dividend ($m) Interim dividend (cents per share) Final dividend 18 ($m) Final dividend (cents per share) Total dividend 16 ($m) 1, , , ,658.8 Total dividend (cents per share) Payout ratio (79.46) Payout ratio before significant items Price/earnings ratio (times) (21.04) Growth Rates 53 WEEKS Continuing operations before significant items 3,5 Sales 3.74 (9.08) (3.23) Sales per equivalent week 3.74 (9.08) (3.23) Sales per equivalent week - excluding Petrol (0.98) EBITDA (1.97) (30.65) EBIT (4.91) (38.44) Profit before tax (3.09) (40.85) Basic EPS (5.14) (42.72)

5 Financial Strength 53 WEEKS Continuing discontinued operations before significant items 5 Service cover ratio (times) 19 (times) Fixed charges cover (times) 20 (times) Sales to inventory (times) 21 (times) Capital expenditure to EBITDA Operating cash flow per share ($) Serviced gearing Current assets to current liabilities PRODUCTIVITY Stores NUMBER NUMBER NUMBER NUMBER NUMBER Continuing operations Supermarkets New South Wales Australian Capital Territory Queensl Victoria South Australia Norrn Territory Western Australia Tasmania Supermarkets - Australia Supermarkets - New Zeal Total Supermarkets 1,179 1,176 1,138 1,102 1,063 Thomas Dux Freesting Liquor (incl. Dan Murphy's) Attached Liquor ALH Retail Liquor Outlets Summergate Woolworths Petrol Caltex/Woolworths Petrol Total Food, Petrol Endeavour Drinks Group 2,701 2,669 3,108 3,148 3,042 BIG W Hotels (includes clubs) EziBuy (Unallocated) Home Timber Hardware (retail) Masters Total continuing operations 3,215 3,191 3,627 3,740 3,603 Discontinued operations 3 Woolworths Petrol Home Timber Hardware (retail) Masters Total discontinued operations Total Group 3,746 3,824 3,729 3,740 3,603 5

6 Stores movement 26 JUNE 2016 NUMBER OPENED/ACQ NUMBER CLOSED NUMBER 25 June 2017 NUMBER Continuing operations Supermarkets New South Wales Australian Capital Territory Queensl Victoria South Australia Norrn Territory Western Australia Tasmania Supermarkets - Australia Supermarkets - New Zeal Total Supermarkets 1, ,179 Thomas Dux Freesting Liquor (incl. Dan Murphy's) Attached Liquor ALH Retail Liquor Outlets Summergate Total Food Endeavor Drinks Group 2, ,701 BIG W Hotels (includes clubs) EziBuy (Unallocated) Total Continuing Operations 3, ,215 Discontinued operations 3 Woolworths Petrol Home Timber Hardware Masters Total Group Movement 3, ,746 6

7 NOTES TO THE SUMMARY 1. Following Group's reassessment in prior year of reportable segments under new Woolworths operating model, Endeavour Drinks Group was identified as a seperate reportable segment (previously included within Australian Food, Liquor Petrol) BIG W was identified as a separate reportable segment (previously included within General Merchise). These changes have been reflected in 2017, Prior to 2015, results of se segments continue to be presented as y were previously reported. 2. Following separationof EziBuy BIG W, as a result of reassessment of reportable segments outlined in note 1 above, EziBuy is reported within Unallocated. This has been reflected in 2017, 2016, Discontinued Operations consist of following: 1. Following - For statutory Group's reporting, reassessment Petrol business prior is reported year of reportable as a discontinued segments operation under from new Woolworths For comparative operating purposes, model, Endeavour with exception Drinks Group of was identified balance sheet, as a seperate 2016 hasbeen reportable restated segment to show (previously Petrol as included a discontinued within Australian operation. Food, In 2015,2014 Liquor Petrol) 2013, BIG Petrol W was business identified continues as a separate to be shown reportable within continuing segment operations; (previously included within General Merchise). These changes have been reflected in 2017, Prior to 2015, results - The Home of se Improvement segments continue business to is be reported presented as a as discontinued y were previously operation from reported For comparative purposes, with exception of balance 2. Following sheet, 2015 has separationof been restated EziBuy to show BIG HomeImprovement W, as a result of as a reassessment discontinued of operation. reportable In segments , outlined in Home note 1 Improvement above, EziBuy business is reported continues within to Unallocated. be shown within This continuing has been reflected operations; in 2017, 2016, India Wholesale operations were reported as a discontinued operation from Discontinued Operations consist of following: 4. - Unallocated For statutory consists reporting, of Group's Petrol business operating is segments reported as that a discontinued are not separately operation reportable from includingezibuy For comparative (for 2017,2016, purposes, with 2015 exception 2014) as of well as various support functions including Property Head Office costs. balance sheet, 2016 hasbeen restated to show Petrol as a discontinued operation. In 2015, , Petrol business continues to be shown 5. within Significant continuing items represent: operations; --The In 2016, Home costs Improvement of $951.1 business million before is reported tax from as a continuing discontinued operations ($760.3 from million For after comparative tax, $749.5 purposes, million attributable with exception to equity of holders balance of sheet, parent 2015 entity has been $10.8 restated million to attributable show HomeImprovement to non-controlling as a interests) discontinued relating operation. to Operating In 2014 model 2013, strategic Home Improvement changes, Store business network continues to be optimisation shown within continuing property rationalisation, operations; General Merchise impairment; --India 2016, Wholesale costs of operations $3,062.6 million were reported before tax as from a discontinued discontinued operation operations from ($2, million after tax, $1,878.3 million attributable to equity holders of parent entity $1,115.1 million attributable to non-controlling interests) impairment of Home Improvement assets related store exit costs 4. Unallocated relating to Woolworths consists of intention Group's to operating sell or wind-up segments Home that are Improvement not separately business; reportable includingezibuy (for 2017,2016, ) as well as various - In 2015,costs support functions of $425.9 including million before Property tax ($308.1 Head million Office after costs. tax, $307.3 million attributable to equity holders of parent entity $0.8 million 5. Significant attributable items to non represent: controlling interests) relating to General Merchisetransformation, Business transformation, Redundancy, Property -portfolio In 2016, review. costs of Note $951.1 $2.7 million before of this tax significant from continuing item related operations to discontinued ($760.3 million operations; after tax, $749.5 million attributable to equity holders of parent - In 2013, entity profit of $10.8 $9.9 millionattributable before tax ($7.9 to non-controlling million after tax) interests) on sale relating of Consumer to Operating Electronics model businesses; strategic changes, Store network optimisation - In 2013, one-off property loss of $32.8 rationalisation, million before tax General ($28.5 Merchise million after impairment; tax) on Shopping Centres Australasia Property Group transaction; --In In 2016, 2013, costs one-off of costs $3,062.6 of $25.8 million million before before tax from tax ($18.1 discontinued millionoperations after tax) for ($2,993.4 Victorian million transport after fleet tax, redundancies; $1,878.3 million attributable to equity holders of - In parent 2013,one entity offcosts $1,115.1 of $82.3 millionbefore attributable tax ($57.6 to non-controlling millionafter interests) tax) relating impairment to US144A of Home bond Improvement redemption. assets related store exit costs relating to Woolworths intention to sell or wind-up Home Improvement business; -Where In 2015,costs noted, profit $425.9 loss million items before have tax been ($308.1 adjusted million to reflect after tax, se $307.3 significant million items. attributable to equity holders of parent entity $0.8 million 6. attributable Or financial to non assets controlling liabilities interests) primarily relating represent to General put options Merchisetransformation, held by non-controlling interests, Business Hotels transformation, gaming entitlement Redundancy, liability, Property Hills License portfolio assets review. liabilities Note as $2.7 a result million of hedging of this significant per AASB item 9 Financial related Instruments.In to discontinued calculating operations; funds employed, contingent consideration (2016: $21.8 -million, In 2013, 2015:$20.4 profit of $9.9 million) million has before been tax reclassified ($7.9 million to or after creditors tax) on sale to better of reflect Consumer economic Electronics nature businesses; of this liability to Group have In 2013, also one-off been restated. loss of $32.8 million before tax ($28.5 million after tax) on Shopping Centres Australasia Property Group transaction; - In 2013, one-off costs of $25.8 million before tax ($18.1 million after tax) for Victorian transport fleet redundancies; 7. -Due In 2013,one to a change offcosts in of Group's $82.3 millionbefore income tax accounting tax ($57.6 policy millionafter disclosed tax) in Note relating 3.6 to of US144A 2017 Financial bond redemption. report, Group is required to 'gross up' balance sheet for goodwill deferred tax liabilities in relation to historic purchases of indefinite life intangibles (2017:$612.3 million, 2016: $612.3 Where million). noted, This change profit does loss not items impact have been profit adjusted or loss. to reflect se significant items Or Total funds financial employed assets is net liabilities assets excluding primarily represent net tax balances, put options cash held borrowings by non-controlling debt, or interests, financial Hotels liabilities, gaming entitlement assets liability, liabilities Hills as License a result of assets hedging per liabilities AASB 9 as Financial a result Instruments. of hedging per AASB 9 Financial Instruments.In calculating funds employed, contingent consideration (2016: $ million, Cash 2015:$20.4 borrowings million) is gross has debt been less reclassified cash on h, to or cash creditors at bank to better cash on reflect short term economic deposit. nature of this liability to Group have also been restated Due Or to a operating change in cash flows Group's income or non tax accounting cash in 2016 policy includes disclosed $3,789.8 in Note million 3.6 of of significant 2017 Financial items recognised report, in Group relation is required to impairment to 'gross up' of nonfinancial sheet assets, for goodwill recognition deferred of onerous tax liabilities lease in or relation store exit historic cost purchases provisions. of Significant indefinite items life intangibles recognised (2017:$612.3 in relation to million, write-down 2016: $612.3 of balance million). inventory This have change been does included not impact within line profit Movement or loss. in net investment in inventory. 8. Total funds employed is net assets excluding net tax balances, cash borrowings debt, or financial liabilities, assets liabilities as a result of 11. Return on funds employed (ROFE) is calculated as EBIT for previous 12 months as a percentage of average (opening, mid closing) funds employed. hedging per AASB 9 Financial Instruments. ROFE before significantitems is calculated as EBIT for previous 12 months before significant items as a percentage of average (opening, mid 9. Cash closing) funds borrowings employed. is gross This debt methodology less cash on hasbeen h, cash adopted at bank for 2017 cash on short In term previous deposit. reporting periods, ROFE was calculated as EBIT for 10. Or reporting operating period cash a percentage flows or of average non cash (opening 2016 includes closing) $3,789.8 funds employed. million of As significant a result of items recognised change in methodology, in relation to ROFE impairment for 2015, 2014 of nonfinancial 2013 has assets, not been presented. recognition Due of onerous to a change lease in or Group's store income exit cost tax accounting provisions. policy Significant disclosed items in recognised Note 3.6 of in relation 2017 to Financial write-down report, of Group is inventory required to have 'gross been up' included balance within sheet for line goodwill Movement in deferred net investment tax liabilities in inventory. relation to historic purchases of indefinite useful life intangibles (2017: $612.3 million, 2016: $612.3 million). This change does not impact profit or loss has been excluded from ROFE calculation. 11. Return on funds employed (ROFE) is calculated as EBIT for previous 12 months as a percentage of average (opening, mid closing) funds employed. 12. ROFE Service before burden significantitems is net profit before is calculated income as tax EBIT (before significant previous items) 12 months expressed before as significant a percentage items of as EBIT. a percentage of average (opening, mid 13. closing) Tax burden funds is employed. profit after This income methodology tax (before hasbeen significant adopted items) for attributable 2017 to shareholders In previous expressed reporting as periods, a percentage ROFE was of profit calculated before as income EBIT for tax. reporting period as a percentage of average (opening closing) funds employed. As a result of change in methodology, ROFE for 2015, Asset turn is total sales divided by average (ofopening closing)total assets for year has not been presented. Due to a change in Group's income tax accounting policy disclosed in Note 3.6 of 2017 Financial report, Group is 15. required Financial to leverage 'gross up' is average balance (of opening sheet for goodwill closing) total deferred assets divided tax liabilities by average in relation (of opening to historic purchases closing) shareholders' of indefinite equity useful life for intangibles year. (2017: 16. $612.3 Return million, equity 2016: is profit $612.3 after million). income This tax change (before does significantitems) not impact attributable profit or loss to shareholders, has been excluded divided byfrom average ROFE (of opening calculation. closing) shareholders' equity for year. 12. Service burden is net profit before income tax (before significant items) expressed as a percentage of EBIT. 13. Tax burden is profit after income tax (before significant items) attributable to shareholders expressed as a percentage of profit before income tax. 14. Asset turn is total sales divided by average (ofopening closing)total assets for year. 15. Financial leverage is average (of opening closing) total assets divided by average (of opening closing) shareholders' equity for year. 16. Return on equity is profit after income tax (before significantitems) attributable to shareholders, divided by average (of opening closing) 7

8 shareholders' equity for year. 17. Basic earnings per share (EPS) is profit after tax servicing Hybrid Notes attributable to shareholders divided by weighted average number of ordinary shares on issue during year. The weighted average number of shares on issue has been calculated in accordance with AASB 133 Earnings per Share. 18. The current year figure represents forecast dividend given shares on issue at date full year results are released to market. This figure will change if re are any shares issued between reporting date ex-dividend date. 19. Service cover ratio is EBIT (before significant items) divided by sum of net financing costs Hybrid Notes interest. 20. Fixed charges cover is EBITDAR (beforesignificant items) divided by rent interest costs. Rent interest costs include capitalised interest but exclude foreign exchange gains/losses dividend income. 21. Sales to inventory is total sales divided by average (of opening closing) inventory. 22. Serviced gearing is cash borrowings toger with hedge assets liabilities related to those borrowings divided by cash borrowings toger with hedge assets liabilities related to those borrowings plus total equity. Certain comparative amounts have been reclassified to conform with current full-year's presentation to better reflect economic nature of assets liabilities of Group. 8