WOOLWORTHS GROUP LIMITED — Annual Report 2018

Aug 19, 2018

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Company Results

F U L L Y E A R 2 0 1 8

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CONTENTS

KEY HIGHLIGHTS AND PROGRESS 3 Brad Banducci FINANCIAL RESULTS 7 David Marr

BUSINESS UPDATE 16

OUTLOOK 41 Brad Banducci

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Woolworths Group Limited ABN 88 000 014 675

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W O O L W O R T H S G R O U P R E S U L T S F Y 1 8 2

Key Highlights

• Customer 1[st] Team 1[st] Culture delivering further improvements across Voice of Customer, Voice of Team and Voice of Supplier scores

• Strong sales and EBIT growth driven by Australian Food with Group sales from continuing operations up 3.4%, and EBIT up 9.5% despite ongoing reinvestment

• WooliesX starting to deliver on digital and data agenda. CountdownX established in June

• Progress in BIG W turnaround but still a long way to go. New alliance with Caltex and IPO or sale of Petrol being actively pursued

• FY18 dividend up 22.6% including special dividend of 10c. Further capital management will be considered as part of a successful exit of Petrol

W O O L W O R T H S G R O U P R E S U L T S F Y 1 8 3

Woolworths Group FY18 priorities

6 CUSTOMER 1[ST ] Create competitive TEAM 1[ST ] CULTURE advantage across Woolworths Group CONNECTED, PERSONALISED AND CONVENIENT 5 SHOPPING EXPERIENCES Create differentiated TRANSFORM EVOLVE CREATE VALUE customer propositions 2 AUS AND 3 OUR DRINKS 4 IN OUR NZ FOOD BUSINESS PORTFOLIO E2E PROCESSES – BETTER FOR CUSTOMERS Engineer a lean 1 AND SIMPLER FOR STORES operating model

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W O O L W O R T H S G R O U P R E S U L T S F Y 1 8 4

Progress against our key priorities

Customer 1[st] Team 1[st] culture

• New Purpose, Ways-of-Working and Core Values activated

• VOC, VOT and VOS scores further improved in FY18

• Ranked first by suppliers in Food Retail Advantage buying survey

• A number of new team benefits launched during the year

• More work to do to embed Ways-of-Working

Evolving Endeavour Drinks

• Strong sales growth across BWS and Dan Murphy’s

• Customer 1[st] Ranging completed across BWS

• My Dan Murphy’s now with 3 million members

• New MD, Steve Donohue appointed

• More work to do to evolve Endeavour Drinks to deliver medium-term growth

Connected, personalised and convenient shopping experiences

• Pick up available at >2,900 stores including Australian and New Zealand supermarkets, Dan Murphy’s, BWS and BIG W

• BWS leading in on demand delivery

• CountdownX launched to lead online food retail sector in New Zealand

• New format Metro opened in Pitt Street Mall

• More work to do to improve Digital UX, Home Delivery and Pick up

Unlocking value in our portfolio

• Strong item growth in BIG W but still early in the journey

• New fuel supply agreement with Caltex

• IPO or sale of Petrol business in progress

• Solid sales and EBIT growth in ALH Hotels

• More work to do to continue momentum in BIG W turnaround and improve responsible gaming practices at ALH

Transforming Australian and New Zealand Food

• Australian Food continued improvement in customer scores including Fruit & Veg

• 80 Renewals and 54 Upgrades

• Investment in New Zealand Food driving improved customer and sales outcomes; new MD, Natalie Davis appointed

• Online growth over 30% following investment in AU and NZ Food

• More work to do to deliver ‘consistently good’ shopping experiences

End-to-end processes – ‘better for customers’ and ‘simpler for stores’

• 1Store roll out to all Australian Food stores and attached BWS

• ‘Simpler for Stores’ up and running

• Progress on Big 5 productivity initiatives in Woolworths Supermarkets

• MSRDC building and automation installation on time and budget

• More work to do to leverage process improvement to deliver productivity targets

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CONTENTS

KEY HIGHLIGHTS AND PROGRESS	3
Brad Banducci
FINANCIAL RESULTS	7
David Marr
Group financial results	8
Key balance sheet metrics	10
Cash flow summary	11
Capital expenditure	12
Capital management	13
Impact of new lease standard	14
BUSINESS UPDATE	16
OUTLOOK	41
Brad Banducci

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W O O L W O R T H S G R O U P R E S U L T S F Y 1 8 6

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Financial Results

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W O O L W O R T H S G R O U P R E S U L T S F Y 1 8 7

FY18 results – strong earnings leading to improved returns

	FY18 results– strong	earnings leading to i	earnings leading to i	mproved	returns
		CONTINUING OPERATIONS			TOTAL GROUP
			Change		Change
Sales		56.7bn	3.4%	61.5bn	1.9%
EBIT		2,548m	9.5%	2,743m	3.8%
NPAT attributable to Woolworths Group shareholders		1,605m	12.9%	1,724m	12.5%
Earnings per share (basic)		123.4¢	11.4%	132.6¢	11.1%
Dividend per share (incl. special)		n/a	n/a	103¢	22.6%
Return on average funds employed		24.1%	188bps	25.0%	-
Return on average funds employed – lease-adjusted		14.0%	90bps	n/a	n/a

Note: unless otherwise stated, all continuing operations results are compared to FY17 continuing operations Total Group measures presented above include continuing and discontinued operations

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Strong Group EBIT improvement underpinned by Australian Food

$m	FY18	FY17	Change
Continuing operations
Australian Food	1,757	1,603	9.6%
Endeavour Drinks	516	503	2.8%
New Zealand Food	262	292	(10.4)%
New Zealand Food (NZD)	284	309	(8.2)%
BIG W	(110)	(151)	(26.9)%
Hotels	259	233	11.1%
Central overheads	(136)	(154)	(11.7)%
EBIT continuing operations	2,548	2,326	9.5%
Discontinued operations –Home Improvement	27	159	n.m.
Discontinued operations –Petrol	168	158	7.1%
Group EBIT	2,743	2,643	3.8%

n.m. not meaningful

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Key balance sheet metrics continuing to improve

AVERAGE INVENTORY DAYS Days

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Continuing operations
Group
FY14 FY15 FY16 FY17 FY18
41.3
40.8
40.4
39.9 40.0
39.3
39.0
38.3
37.6
36.0
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Average inventory days continued to improve with a 1 day reduction from continuing operations. Australian Food, Endeavour Drinks and BIG W all improved with New Zealand Food flat

ROFE Percentage Continuing operations Continuing operations – lease-adjusted

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24.1
22.3
14.0
13.1
FY17 FY18
Group ROFE from continuing ops increased by 188bps
largely due to 9.5% increase in EBIT
Lease-adjusted ROFE increased by 90bps
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Note: all numbers exclude significant items in FY16

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Cash realisation and free cash flow remain strong

CASH FLOW SUMMARY

CASH FLOW SUMMARY
$m	FY18	FY17	Change
Operating activities before interest and tax	3,775	4,024	(6.2)%
Interest and tax	(845)	(902)	(6.4)%
Operating activities	2,930	3,122	(6.1)%
Investing activities	(1,510)	(1,431)	5.5%
Free cash flow before dividends and share issues	1,420	1,691	(16.0)%
Share issues/other	-	56	n.m.
Dividends	(780)	(563)	39.0%
Free cash flow after dividends and share issues	640	1,184	(46.0)%
Cash realisation ratio	101%	118%

n.m. not meaningful

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Operating capex at low end of FY18 forecast and driven by planned investments in Renewals, IT and Digital

$m	FY18	FY17
Continuing operations
Operating capex	1,691	1,583
Propertydevelopment	245	258
Gross capex	1,936	1,841
Propertysales	(90)	(273)
Net capex	1,846	1,568
Discontinued operations – Home Improvement*	12	23
Discontinued operations – Petrol	43	31
Group net capex	1,901	1,622

• Home Improvement net capex excludes the sale of 40 Masters freehold trading sites and 21 Masters freehold development sites. These were included in the sale of Hydrox Holdings Pty Ltd on 11 October 2017 for a headline sale price of $525m.

OPERATING CAPEX – FY18

OPERATING CAPEX – FY17

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8%
23%
4% $1,691M 35%
13%
17%
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9%
23%
29%
$1,583M
15%
8%
16%
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New stores
Renewals / Refurbs
SIB / Other
Growth
Supply Chain
IT
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FY19 operating capex expected to be broadly in line with FY18

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Disciplined capital management reflecting improved financial performance

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Interim Final Special Payout ratio (ex special) - RHS
120 72
110
70
100 10
90
68
80
70 50 66
60 33 50
64
50
40
62
30 44 43
34
20 60
FY16 FY17 FY18
%
Cents
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Dividend reinvestment plan: Announced in February that DRP discount of 1.5% will not apply to FY18 final dividend or for foreseeable future

Dividends: Group will continue to target a full-year dividend payout ratio of 70%, subject to trading performance

• Fully franked FY18 final dividend of 50 cps

• In addition, fully franked special dividend of 10 cps, reflecting improved trading performance, balance sheet strength and new Petrol alliance

Further capital management will be considered following a successful exit from Petrol

Fixed charges cover ratio (x)

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2.3 2.5 2.6
3.09
1.90
1.22
FY16 FY17 FY18
Net Debt $ bn
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Credit ratings: Committed to solid investment grade ratings with S&P and Moody’s

• In June Moody’s revised the Group’s outlook to Baa2 (stable outlook)

• All credit metrics strengthened with higher EBIT

Funding & liquidity: Active management of debt position

• Repaid high cost US$ private placement debt in May ’18

• Sources of funding and liquidity remain strong

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Preliminary impact of new lease accounting standard

• AASB 16 brings majority of leases onto balance sheet. The Group will initially apply AASB 16 on 1 July 2019

The actual impact of applying the standard in FY20 will depend on:

• Well advanced for full implementation of standard in FY20

• No cashflow impact on the Group

• Future economic conditions, including the Group’s borrowing rates at 1 July 2019,

• Estimated pro-forma FY18 impact is an addition of ~$14-15bn discounted lease liability on balance sheet

• Corresponding right-of-use asset of ~$12-13bn

• Net impact, adjusted for deferred tax and reversal of current lease accounting recognised against retained earnings

• Composition of the Group’s lease portfolio, and

• Final determination of reasonably certain renewal options on 1 July 2019

• Change will impact a number of the key financial metrics used extensively by the market like EBIT and ROFE

• We are in the process of reviewing the impact on our disclosure

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CONTENTS

CONTENTS
KEY HIGHLIGHTS AND PROGRESS	3
Brad Banducci
FINANCIAL RESULTS	7
David Marr
BUSINESS UPDATE	16
Australian Food	17
Endeavour Drinks	26
New Zealand Food	30
BIG W	33
Hotels	38
OUTLOOK	41
Brad Banducci

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W O O L W O R T H S G R O U P R E S U L T S F Y 1 8 15

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Business Update

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Australian Food

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	FY18 FY17 CHANGE Sales ($m) 37,379 35,836 4.3% EBITDA ($m) 2,430 2,221 9.4% EBIT 1,757 1,603 9.6% Gross margin (%) 29.1 28.5 63bps Cost of doing business (%) 24.4 24.0 41bps EBIT to sales (%) 4.7 4.5 23bps Sales per square metre ($) 16,435 15,974 2.9% ROFE (%) 170.7 166.1 4.6pts

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Australian Food FY18 priorities

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6
CUSTOMER 1 [ST]
TEAM 1 [ST ] CULTURE
Scale-up the future
ACCELERATE RENEWAL AND EXTEND
5
APPROACH TO ONLINE AND METRO
Extend core PRICES I TRUST CONSISTENTLY
FAMOUS
customer offer 2 ON PRODUCTS 3 GREAT SHOPPING 4
FOR FRESH
I WANT EXPERIENCE
E2E PROCESSES THAT ARE ‘BETTER FOR
Excel on the basics
1
CUSTOMERS’ AND ‘SIMPLER FOR STORES’
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W O O L W O R T H S G R O U P R E S U L T S F Y 1 8 19

Progress highlights

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Create the future	• Overall Customer Satisfaction (including Online) in June increasing 4pts to 81% and June store-controllable VOC of 84%, up 4pts from the prior year
	• 80 Renewals (including 11 new stores) and 54 Upgrades. Opened net 7 new Woolworths supermarkets and
	6 Metros (including two former Thomas Dux stores)
	• Investment in digital and data delivered 30% online sales growth, with two new dedicated CFCs
	(Sydney & Melbourne) and increased Woolworths Rewards members to 10.9m
	• Metro experiencing strong double-digit sales growth
	• Pick up now live in over 1,000 Australian Food stores with increasingly positive customer satisfaction
	• Significant improvement in Fruit & Vegetables VOC (+8pts on last year) as we focus on partnering with our suppliers
Deliver on core	to deliver quality and improved availability
customer offer	• Continue to lower shelf prices with over 4,800 SKUs on Dropped & Always program at the end of FY18 and bridged
	the price persception gap
	• ‘Consistently good’ service across our fleet: 71% stores with an average satisfaction score of 80% or higher
	• Over 5,000 SKUs rebranded to Woolworths, Essentials and category brands which are delivering strong unit growth
	• Meat transformation progressing to plan in partnership with Hilton

• 1Store rolled out across our store network, cloud enabling our stores for the future and further productivity benefits Fix the basics • Continuous improvement in on-shelf availability with Availability VOC up 4pts from the prior year leveraging technology and simplifying end-to-end store process • Continued improvements in stock loss • Voice of Supplier metrics continuing to improve • Improved on-time payment for our suppliers and moving small suppliers to 14 day payment terms while also achieving working capital improvement

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Customer highlights

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STORE-CONTROLLABLE VOC

OVERALL SATISFACTION – STORE & ONLINE STORE-CONTROLLABLE VOC % customers satisfied, 6 or 7 out of 7 % customers satisfied, 6 or 7 out of 7

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+4 +4
90
90
81 84
77 80
0
0
June-17 June-18
June-17 June-18
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EASE OF PICK UP FRUIT & VEGETABLES

PRODUCT AVAILABILITY

% customers satisfied, 6 or 7 out of 7 % customers satisfied, 6 or 7 out of 7 % customers satisfied, 6 or 7 out of 7

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+12
+8 +4
90 90 90
84
77 77
72 73
69
0 0 0
June-17 June-18 June-17 June-18 June-17 June-18
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Sales highlights

AUSTRALIAN FOOD SALES (% year on year) 5.1 4.7 4.2 3.1 Q1 Q2 Q3 Q4 FY18 Comp 4.9 5.0 4.0 3.1 Sales (%)

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COMP TRANSACTION GROWTH
(% year on year)
4.6 4.4 4.1
3.6
Q1 Q2 Q3 Q4
FY18
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COMP ITEMS PER BASKET GROWTH
(% year on year)
1.4
1.0
0.6
0.0
Q1 Q2 Q3 Q4
FY18
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*** Adjusted for the timing of Easter**

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Renewal highlights

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RENEWAL PROGRESS

FY18 was the second year of our Renewal program, with a third of our fleet now complete

177 139 Renewals Upgrades completed since completed since program launch program launch

Marrickville Metro and Plumpton were the latest steps in our program with double-digit growth

51 Drive Up/Drive Thru and Pick up sites delivered

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KEY METRICS Customer Renewal overall Resetting culture and growth customer satisfaction engagement - Team advocacy Sales performing strongly, in line with >5% expectations +8pts +6pts

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WooliesX highlights

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eCom business grew by 30% in FY18 driven by strong growth in Pick up

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Improved our eCom VOC : (+6pts) and NPS (+15pts) Significant improvement in Pick up metrics and order completeness

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National roll out of Pick up to 1,070 stores, and invested for the future through addition of 2 new Customer Fulfilment Centres (Brookvale and Footscray)

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Invested in new digital and data talent at 407 Elizabeth Street

Customer Hub brought in-house to deliver consistent experience and support

10.9m Rewards members Leveraging data to expand our program to support BWS and BIG W

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Australian Food FY19 priorities

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6 Customer 1[st] Brand,Team and Culture

Innovate our customer and team experience Connected, Personalised and 5 Ultra Convenient Shopping Experiences Good Prices Engaging Famous for Differentiate core customer offer 2 and Localised 3 Store 4 Fresh Every Range Experience Time Processes that are Better for Customers, Redesign E2E 1 operating model Simpler and Safer for Stores

Redesign E2E operating model

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Endeavour Drinks

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	FY18 FY17 Change Sales ($m) 8,271 7,913 4.5% EBITDA ($m) 603 588 2.7% EBIT ($m) 516 503 2.8% Gross margin (%) 23.1 23.1 2bps Cost of doing business (%) 16.9 16.7 13bps EBIT to sales (%) 6.2 6.4 (11)bps Sales per square metre ($) 18,155 17,917 1.3% ROFE (%) 17.1 16.9 15bps

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BWS highlights

FY18 HIGHLIGHTS

18 18 net new store openings bringing total store network 1,316 stores

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Completion of Marrickville Metro concept store

Launched BWS On Demand with over 340 stores offering the service and approximately 30,000 deliveries completed

Pleasing increase in year on year supplier engagement, seeing BWS improve its rank from fifth to second out of 26 retailers

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FY19 FOCUS

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Continued innovation and rollout of store format renewals program across the store network

Improving convenience proposition to customers through continued rollout of express delivery and improvements to BWS online

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Continue to build the knowledge of the team

Improving value offered to BWS customers through Woolworths Rewards

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Dan Murphy’s highlights

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FY18 HIGHLIGHTS

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Record high of 3m My Dan Launched new 73 for VOC NPS Murphy’s Website platform score members 30 May 2018

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8
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8 new store Online Liquor Store openings bringing of the Year in the Liquor total store network Store Association 227 Stores Excellence Award

FY19 FOCUS

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Improving Localised Increase convenience via ranging in knowledgeable Delivery and Pick stores service in stores up propositions

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Increasing value to Innovating store customers enrolled formats leveraging in the My Dan digital and endless Murphy’s program aisle technology

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New Zealand Food

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	FY18 FY17 Change Sales ($m) 6,396 6,188 3.4% EBITDA ($m) 411 427 (3.6)% EBIT ($m) 284 309 (8.2)% Gross margin (%) 24.2 24.2 (1)bps Cost of doing business (%) 19.7 19.2 56bps EBIT to sales (%) 4.4 5.0 (56)bps Sales per square metre ($) 15,531 15,046 3.2% ROFE (%) 9.5% 10.5% (100)bps

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New Zealand Food highlights

FY18 HIGHLIGHTS

Stronger core sales momentum

Accelerating doubledigit online growth

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3.4%

Comparable sales growth

Low prices and improved processes > 4,500 products on Price lockdown Improved stock loss

Fruit & Vegetables focus

Price competitiveness, training, team hours, and freshness focus driving positive share and VOC

Tailored ranging to meet local needs > 90 stores completed to date

Focus on team

Team 84% engagement score

Learning occasions 21k to date via The Food Project

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FY19 FOCUS

Build Customer 1[st] Bring new brand Team 1[st] Culture platform to life

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Fresh, healthy and exclusive range

Drive further online and digital growth

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Customer-led ranging Community and and store renewal environment

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BIG W

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	FY18 FY17 Change Sales ($m) 3,566 3,542 0.7% LBITDA ($m) (30) (72) (57.3)% LBIT ($m) (110) (151) (26.9)% Gross margin (%) 31.7 31.3 43 bps Cost of doing business (%) 34.8 35.6 (74) bps LBIT to sales (%) (3.1) (4.2) 117bps Sales per square metre ($) 3,369 3,345 0.7% ROFE (%) (23.3) (31.6) 8.3pts

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BIG W highlights

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FY18 HIGHLIGHTS

• 81% of customers satisfied with their in-store experience in June

• Prices now down on over 4,500 key value lines

• Rollout of 13 Customer 1[st] Ranges and three trials underway with promising early results

• Light store refresh completed in an additional 46 stores; 165 now complete

FY19 FOCUS

1 Embed our brand Purpose into our ways of working

• 2 Continue to focus on regaining customer trust on price

• 3 Expand and roll out Customer 1[st] Ranges

• 4 Improve customers’ shopping experience

• 5 Improve stock flow across the business

• Pick up for online orders rolled out across the network and strong eCom sales growth

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BIG W FY19 priorities

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BIG W Purpose

A team and customer-first culture requires alignment around a common purpose In FY19, the focus will be on engaging and unifying the team around the purpose

Making purpose real for our team is defining three pillars:

REAL SOLUTIONS

Making the experience simple and enjoyable for our team and customers

REAL VALUE

We need to set prices and ranges that make sense and give families a real sense of trust in us

REAL CARE

Caring for families includes our team, customers and community

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ALH Hotels

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	FY18 FY17 Change Sales ($m) 1,612 1,553 3.7% EBIT ($m) 259 233 11.1% Gross margin (%) 84.2 83.1 107 bps Cost of doing business (%) 68.1 68.1 - EBIT to sales (%) 16.1 15.0 107 bps

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CONTENTS

KEY HIGHLIGHTS AND PROGRESS 3 Brad Banducci

FINANCIAL RESULTS 7 David Marr

BUSINESS UPDATE 16 OUTLOOK 41 Brad Banducci FY19 priorities 41 Outlook 42

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Woolworths Group FY19 priorities

6 Customer 1[st] Build growth Team 1[st] Culture platforms for the future Connected, Personalised and Convenient 5 Shopping Experiences Accelerate Create Differentiate our Unlock Value in differentiation in all 2 Food Customer 3 Innovation in our 4 our Portfolio Drinks Business of our businesses Propositions E2E Processes – ‘Better for Customers’ Redesign our E2E 1 and ‘Simpler for Stores’ operating model

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Outlook

• We remain energised by the many opportunities to continue to transform our business

• In Australian Food, comparable sales in the first seven weeks of Q1’19 slowed to 1.3% as customers adjusted to the phasing-out of single-use plastic bags, a competitor continuity program, meat and fruit and vegetable deflation, and cycling of Earn and Learn

• We expect sales momentum to improve over the course of the half and are confident we have strong plans in place for the remainder of the year

• New Zealand Food is enjoying strong core sales momentum following investments made in FY18 and in FY19, we will continue to invest in CountdownX

• Endeavour Drinks is evolving to position itself for sustainable medium-term growth through a focus on range curation, knowledgeable service and increased convenience with further investment to enhance its digital and data capabilities planned in FY19

• We expect continued progress from BIG W with a further reduction in losses. However, financial performance will be driven by the key Christmas trading period

• Further capital management will be considered as part of a successful exit from Petrol

Our Q1’19 sales release is scheduled for 1 November 2018

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Woolworths Group Purpose and Ways-of-Working

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Our Ways-of-
Working
Our
How we work
Purpose
Why we exist
Our Values
Who we are
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Thank you

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Glossary

Cash realisation ratio	Operating cash flow as a percentage of group net profit after tax before depreciation and amortisation
Comparable sales	Measure of sales which excludes stores that have been opened or closed in the last 12 months and demonstrable impact on existing stores
	from store disruption as a result of store refurbishment or new store openings
Cost of doing business	Expenses which relate to the operation of the business
Customer 1st Ranging	Developing a clearly defined range to provide an easier shopping experience for the customer
Customer fulfilment	Customer fulfilment centres (CFCs) are dedicated online distribution centres
centre
Fixed charges cover	Group earnings before interest, tax, depreciation, amortisation and rent (EBITDAR) divided by rent and interest costs. Rent and interest costs
ratio	include capitalised interest, but exclude foreign exchange gains /losses and dividend income
Free cash flow	Cash flow generated by the Woolworths Group after equity related financing activities including dividends
Funds employed	Net assets employed excluding net tax balances
Net assets employed	Net assets excluding net repayable debt and other financial liabilities
Net Promoter Score	A loyalty measure based on a single question where a customer rates a business on a scale of 0-10. The score is the net result of the
	percentage of customers providing a score of 9 or 10 (promoters) less the percentage of customers providing a score of 0-6 (detractors)
Net repayable debt	Borrowings less cash balances including debt hedging derivatives
Renewals	A total store transformation focused on the overall store environment, team, range, offer and process efficiency (including digital)
ROFE	EBIT before significant items for the previous 12 months as a percentage of average funds employed (opening, mid and closing) . Lease
	adjusted ROFE adjusts funds employed for the present value of future lease obligations and EBIT for the implied interest on those obligations
Sales per square metre	Total sales for the previous 12 months by business divided by average trading area
Stock loss	The value of stock written-off, wasted, stolen, cleared, marked-down or adjusted from all stores nationally (sometimes expressed as a
	percentage of sales)
Upgrades	A lighter upgrade typically involving a front-of-store upgrade and Produce/ Bakery enhancement
Voice of Customer	Externally facilitated survey of a sample of Woolworths Group customers where customers rate Woolworths Group businesses on a number of
	criteria. Expressed as the percentage of customers providing a rating of six or seven on a seven point scale
Voice of Supplier	Bimonthly survey (six times a year) of a broad spectrum of Australian Foods’ suppliers facilitated by an external provider. The survey is used to
	provide an ongoing measure of the effectiveness of business relationships with the supplier community. VOS is the average of the suppliers’
	rating on a seven point scale across various attributes. The score is the percentage of suppliers that provided a rating of six or seven on a
	seven point scale
Voice of Team	Survey measuring sustainable engagement of our team members as well as their advocacy of Woolworths Group businesses as a place to
	work and shop. The survey consists of nine sustainable engagement questions, three key driver questions and two advocacy questions

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Glossary

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Other non-IFRS measures used in describing the business performance include:

• Earnings before interest, tax, depreciation and amortisation (EBITDA)

• Earnings before interest, tax, depreciation, amortisation and rent (EBITDAR)

• Cash flow from operating activities before interest and tax

• Significant items

• Fixed assets and investments

• Net investment in inventory

• Free cash flow after equity related financing activities excluding dividends

• Net assets held for sale

• Net tax balances

• Closing inventory days

• Closing trade payable days

• Average inventory days

• Change in average prices

• Trading area

• Easter-adjusted metrics

• Margins including gross profit, CODB and EBIT

• Volume productivity metrics including transaction growth, items per basket and item growth

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Disclaimer

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This presentation contains summary information about Woolworths Group Limited (Woolworths Group) and its activities current as at the date of this presentation. It should be read in conjunction with Woolworths’ other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, available at www.asx.com.au

This presentation has not been audited in accordance with Australian Auditing Standards.

This presentation contains certain non-IFRS measures that Woolworths Group believes are relevant and appropriate to understanding its business. Refer to the Full Year Profit/(Loss) and Dividend Announcement for further details.

This presentation is for information purposes only and is not a prospectus or product disclosure statement, financial product or investment advice or a recommendation to acquire Woolworths Group shares or other securities. It has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Past performance is no guarantee of future performance.

No representation or warranty, expressed or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Woolworths and its related bodies corporate, or their respective directors, employees or agents, nor any other person accepts liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including, without limitation, any liability from fault or negligence.

This presentation may contain forward-looking statements including statements regarding our intent, belief or current expectations with respect to Woolworths Group’s business and operations, market conditions, results of operations and financial condition, specific provisions and risk management practices. When used in this presentation, the words ‘plan’, ‘will’, ‘anticipate’, ‘expect’, ‘may’, ‘should’ and similar expressions, as they relate to Woolworths Group and its management, are intended to identify forward-looking statements.

Forward looking statements involve known and unknown risks, uncertainties and assumptions and other important factors that could cause the actual results, performances or achievements of Woolworths Group to be materially different from future results, performances or achievements expressed or implied by such statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof.

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