ENDEAVOUR GROUP LIMITED — Interim / Quarterly Report 2022

Apr 20, 2022

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Solid third quarter results whilst navigating impact of weather events and COVID�19

Sales for the 13 weeks from 3 January 2022 to 3 April 2022

	Q3 F22	Q3 F21		EASTER�ADJ
$ million	�13 WEEKS�	�13 WEEKS�	CHANGE	CHANGE1
Retail	2,323	2,396	�3.0%�	�0.7%�
Hotels	405	390	3.8%	2.5%
Group	2,728	2,786	�2.1%�	�0.3%�

1. Calculated by adjusting F21 results to align timing of Easter with F22. This adjustment has also normalised for a three-day lockdown in the Greater Brisbane area from 29 March 2021 to 1 April 2021.

Endeavour Group Managing Director and CEO, Steve Donohue, said “Our business performed well over the third quarter. Hotels trading improved as COVID�19 related restrictions eased, and Retail sales were slightly lower than the equivalent period last year. We continued to build strong customer engagement, with both BWS and Dan Murphy’s recording improvements in customer metrics. These results are once again delivered within the context of an uncertain operating environment with extreme weather events, ongoing supply chain disruptions and growing inflationary pressures creating new challenges.

COVID�19 continued to impact our operations. This was particularly evident at the beginning of the quarter, when consumer hesitancy reduced patronage in our Hotels, while team availability was a challenge in both businesses.

Operating conditions were further impacted by recent floods and adverse weather across parts of New South Wales and Queensland. Team members from multiple sites have been personally impacted by the severe flooding and we are offering them additional support including financial assistance for property damage, providing vouchers for food and offering accommodation for displaced team members and their families at our hotels. Together with our customers, we have also raised over $800,000 to help communities impacted by the floods via charities including donation platform GIVIT.org.au and Red Cross.

The flood events caused extensive damage to a small number of our stores and hotels in the quarter. Our Dan Murphy’s Lismore store was submerged in the flooding in the first week of March. In addition, ten of our BWS stores as well as the Breakfast Creek Hotel �Brisbane) and Westower Tavern �Ballina) were significantly impacted. As a Group, we have suffered approximately $9 million in damages in Q3 which reduced EBIT for the period. This includes direct costs as a result of the floods, such as clean up costs and asset write-offs, as well as an estimate of lost profits when stores and hotels were not able to operate. We are working through the insurance claim process and have not recognised an insurance recovery to date. We reopened the majority of our impacted sites by April, but five stores and one hotel remained fully or partially closed as at the end of Q3.

In light of these challenges, it’s encouraging to see the sustained strength in our trading performance. I would like to thank all our team members for their incredible efforts and dedication through another period of volatility.”

Endeavour Group Limited ACN 159 767 843 | ASX Announcement | 21/04/2022 ‘Creating a more sociable future together’

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Trading Update

The Group delivered $2,728 million in total sales in the quarter, 2.1% lower than the same quarter last year. This is impacted by the timing of Easter, which fell in the third quarter of last financial year compared to the fourth quarter this year. Excluding the impact of Easter in Q3 F21, Group sales in Q3 F22 would have been broadly in line �0.3% lower) with the elevated trading levels in Q3 F21.

Retail sales declined by 0.7% �Easter-adjusted) reflecting the shift of customers returning to on-premise venues as COVID�19 restrictions began to ease. Online sales increased by 16.8% �Easter-adjusted) in Q3 F22 to $222 million, equivalent to 9.6% of Retail sales. We have reached annualised Online sales of over $1 billion[1] . We continue to see online sales growth, supported by our continued investments in digital platforms and engagement, such as the BWS Cooler campaign and Dan Murphy’s personalisation capability.

Both Dan Murphy’s and BWS customer engagement scores improved with Dan Murphy’s VOC NPS up by one point and BWS’ score up three points compared to Q3 F21, driven by improvements in in-store customer experience.

Dan Murphy’s opened one store during the quarter, bringing the total store network to 258. In BWS, five stores were opened, thirteen renewed and four closed, ending the quarter with 1,411 stores.

Hotels trading momentum continued to improve, largely as a result of easing COVID�19 restrictions in New South Wales and Victoria which offset a decline in Western Australia where restrictions tightened. The business delivered $405 million total sales in Q3, up 3.8% on the prior year. Unlike Retail, Hotels’ sales growth was favourably impacted by the timing of Easter due to licence restrictions on Good Friday trading, which fell in the third quarter last year. Adjusted for the timing of Easter, Hotels’ sales growth for the third quarter was 2.5%.

During the quarter, we continued to invest in our network with eight hotels renewed and two acquired �The Empire Hotel and The Grand Tasman Hotel, both in South Australia), bringing our total hotels to 344 (including five managed clubs) at the end of the quarter.

1 Based on Online sales in the 52 weeks to 3 April 2022

Endeavour Group Limited ACN 159 767 843 | ASX Announcement | 21/04/2022 ‘Creating a more sociable future together’

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Retail

Operating Metrics

Operating Metrics
	Q3 F22	Q3 F21
	�13 WEEKS�	�13 WEEKS�
Customer metrics
BWS VOC NPS �Store and Online)	74	71
Dan Murphy’s VOC NPS �Store and Online)	79	78
Sales productivity metrics
Total sales �$ million)	2,323	2,396
Total sales growth1	�3.0%�	6.3%
Easter-adjusted sales growth	�0.7%�	n.a.
Easter-adjusted comparable sales growth	�1.3%�	n.a.

1. F21 sales growth is calculated with comparison to the Equivalent F20 results. Refer to the Appendix for further detail on comparative figures.

endeavourX

endeavourX
	Q3 F22	Q3 F21
	�13 WEEKS�	�13 WEEKS�
Sales productivity metrics
Online sales �$ million)	222	193
Online sales growth1	15.0%	23.8%
Easter-adjusted online sales growth	16.8%	n.a.
Online penetration	9.6%	8.0%
Loyalty
My Dan’s members (million)	6.4	5.3
My Dan’s scan rates	68.9%	62.4%
Everyday Rewards scan rates � BWS	43.8%	43.9%

1. F21 sales growth is calculated with comparison to the Equivalent F20 results. Refer to the Appendix for further detail on comparative figures.

Hotels

Operating Metrics

Operating Metrics
	Q3 F22	Q3 F21
	�13 WEEKS�	�13 WEEKS�
Sales productivity metrics
Total sales �$ million)	405	390
Total sales growth1	3.8%	11.4%
Easter-adjusted sales growth	2.5%	n.a.

1. F21 sales growth is calculated with comparison to the Equivalent F20 results. Refer to the Appendix for further detail on comparative figures.

Endeavour Group Limited ACN 159 767 843 | ASX Announcement | 21/04/2022 ‘Creating a more sociable future together’

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The contents of this F22 Third Quarter Trading Update are derived from the unaudited accounting records of Endeavour Group.

Endeavour Group Chief Executive Officer, Steve Donohue, and Deputy Chief Financial Officer, Kate Beattie, will host an analyst and investor conference call today at 10�00am �AEST�. Analysts, investors and media can access the management briefing via the following:

• • Teleconference Registration: https://s1.c conf.com/diamondpass/10021455 eys7hd.html

Participants will need to pre-register for the call at the link above. You will receive a calendar invite and a unique code which is to be quoted when dialling into the call.

Further Information

Investors Sean O’Sullivan Mobile: �61� 412 139 711 sean.osullivan@edg.com.au

Media James Lopez Mobile: �61� 402 876 947 james.lopez@edg.com.au

Endeavour Group Limited ACN 159 767 843 | ASX Announcement | 21/04/2022 ‘Creating a more sociable future together’

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Appendices

Appendix 1� New stores/hotels and renewals

	GROSS NEW STORES /	NET NEW STORES /
	HOTELS �INCL.	HOTELS �INCL.	RENEWALS
F22 Third Quarter	ACQUISITIONS�	ACQUISITIONS�
Retail	6	2	13
Hotels	2	2	8
Endeavour Group	8	4	21

Appendix 2� Glossary

Term	Description
	Measure of sales which excludes stores that have been opened or closed in
Comparable sales	the last 12 months and demonstrable impact on existing stores from new
	store openings/closures
Online penetration	Online penetration is calculated as total online sales as a percentage of total Retail sales for the same time period
Renewals	A significant upgrade to the store/hotel environment, enhancing customer experience, range and process efficiency (including digital)
	Voice of Customer Net Promoter Score �VOC NPS� is based on feedback
VOC NPS	from customers, and represents the number of promoters (score of nine or
	10� less the number of detractors (score of six or below)

Appendix 3� Note on comparatives, including F20 Equivalent Information

Sales growth is calculated by comparing the current period to the same period in the prior year. Q3 F21 sales growth is calculated with reference to Equivalent Q3 F20 sales.

Equivalent F20 financial information includes the results of what was previously known as Woolworths’ Drinks and Hotels businesses for the full 52-week period ended 28 June 2020. This information has been sourced from the data used in the F20 Woolworths Group Limited Annual Report, adjusted to exclude consolidation adjustments not applicable to Endeavour Group on a standalone basis.

�END�

Endeavour Group Limited ACN 159 767 843 | ASX Announcement | 21/04/2022 ‘Creating a more sociable future together’

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