James Strong
Chairman
Chairman's Address
Earnings per share – up 8.8%
Cents
164.0
150.7
134.9
↑8.8%
↑11.7%
↑24.0%
108.8
↑19.7%
90.9
10
09
08
07
06
↑14.8%
Reflects
strengthening of
our balance sheet
during a period
of major
acquisitions,
integration and
business change
Dividends per share: 2010
Cents
115
104
↑10.6%
↑13.0%
92
Final
62¢
Interim
53¢
↑24.3%
74
↑25.4%
59
10
09
08
07
06
↑15.7%
Fully franked
dividend
pay-out ratio of
70.4% is slightly
up on last year
Michael Luscombe
Managing Director &
Chief Executive Officer
Lower prices
Consumers
continue to trust
Woolworths to
deliver the best
value for their
shopping dollar
Everyday Rewards
5.1 million
registered
members
2.7 million
customers
linked
Financial Results
Sales of $51.7b – up 4.2%
- excluding Petrol – up 4.8%
Statutory
Increase
Full Year
Comp Sales
$m
FY09
FY10
Australian Food and Liquor1
32,978
34,675
5.1%
3.3%
New Zealand Supermarkets (NZD)
4,957
5,185
4.6%
4.0%
New Zealand Supermarkets
4,034
4,131
2.4%
Petrol (dollars)
5,482
5,481
(0.0)%
(1.7)%
Petrol (litres)
4,673
4,792
2.5%
0.7%
42,494
44,287
4.2%
BIG W
4,267
4,193
(1.7)%
(3.2)%
Consumer Electronics - Aust / NZ
1,537
1,530
(0.5)%
(0.9)%
Consumer Electronics - India
187
252
34.8%
Consumer Electronics - Total
1,724
1,782
3.4%
General Merchandise - Total
5,991
5,975
(0.3)%
Hotels
1,110
1,102
(0.7)%
-
330
N/M
Full Year Sales
49,595
51,694
4.2%
Full Year Sales excl Petrol
44,113
46,213
4.8%
Supermarkets Division
Home Improvement
1. Includes Wholesale division previously reported separately
(3.0)%
CODB / Sales
Percentage
21 bps
reduction
20.89%
20.73%
Excludes Petrol and Hotels and in 2009 the release of a provision
10
19.95%
10
19.98%
09
19.95%
09
20.68%
10
05
Our targeted
CODB reduction
of 20 basis
points was
achieved when
the distorting
impact of Petrol,
Hotels and other
significant items
are excluded
Over
$400m
reduction
Gross Profit Margin (excluding Hotels)
Percentage
25.91%
Total
GP Margin
25.66%
25.32%
25.30%
25.03%
24.68%
24.34%
23.89% 23.92%
10
09
08
07
23.70%
06
As expected Gross
Profit Margin has
improved reflecting
improved buying,
reduced shrinkage,
the success of our
exclusive brand
offering, the change in
sales mix and offset by
significant price
reinvestment activity
GP Margin
ex Hotels
EBIT – up 9.5%
$ million
↑19.8%
↑17.6%
↑13.4%
↑15.1%
↑17.4%
091
2,483.1
↑11.3%
3,082.4
↑9.5%
↑ 12.9%
2,111.3
↑22.6%
↑19.8%
↑17.5%
1,722.2
↑32.3%
↑24.2%
1. Reflects growth normalised to remove the impact of the 53rd week in FY08
10
081
08
Stat
07
↑17.8%
06
EBIT growth
underpinned
by strong
growth in
Australian
Food and
Liquor
2,528.8
2,815.5
09
Stat
2,815.5
Total
Group EBIT
Australian
Food and
Liquor EBIT
Profit after tax – up 10.1%
083
1,835.7
↑14.9%
093
1,598.0
↑23.5%
1,835.7
↑12.8%
09
Stat
1,626.8
↑25.7%
08
Stat
$ million
2,020.8
↑ 10.1%
2
1,294.0
↑27.5%
1
10
07
06
1,014.6
↑24.3%
1. Includes Progressive (NZ) business and 20 Australian ex-FAL store results from 2 November 2005, BMG from 1 July 2005, Taverner Hotel Group from 6 February 2006, and ALH and
MGW results for the 52 weeks
2. Includes Progressive and Taverner Hotel businesses for the full 52 weeks
3. Reflects growth normalised to remove the impact of the 53rd week in FY08
Shareholder Payouts
Franking credits available for distribution (after the final dividend) = $1,327m
$ million
1,749
Dividend
Buy-Back
325
1425
1,280
1,121
941
534
894
604
1. Excludes off-market share buy-back of $700 million
10
09
08
07
538
06
463
04
03
02
346
407
693
05
141
Profit growth,
coupled with
balance sheet
management,
will have
delivered $8,166
million payout
to shareholders
over last 9 years
Share Price Performance
TSR CAGR Jun 2000 – Jun 2010
800
WOW 19.7%
600
400
All Ords 6.9%
200
Source: Bloomberg
Note: Woolworths TSR assumes net dividends are reinvested in Woolworths shares at ex-dividend date at that days closing price; All Ords TSR based on Bloomberg
compiled Accumulation index, which takes dividends into consideration
Jun-10
Dec-09
Jun-09
Dec-08
Jun-08
Dec-07
Jun-07
Dec-06
Jun-06
Dec-05
Jun-05
Dec-04
Jun-04
Dec-03
Jun-03
Dec-02
Jun-02
Dec-01
Jun-01
Dec-00
Jun-00
0
First Quarter Sales of $13.9 billion
Up 4.2% excluding Petrol sales, up 4.1% including Petrol sales
$m
FY09
Statutory
(14 weeks)
FY10
Statutory
(14 weeks)
Increase
Comp Sales
Australian Food and Liquor1
9,001
9,292
3.2%
2.0%
New Zealand Supermarkets (NZD)
1,316
1,378
4.7%
4.5%
New Zealand Supermarkets (AUD)
1,065
1,095
2.8%
Petrol (dollars)
1,440
1,488
3.3%
0.9%
Petrol (litres)
1,279
1,297
1.4%
(0.9%)
11,506
11,875
3.2%
1,096
1,066
(2.7%)
(3.9%)
399
400
0.3%
2.0%
Consumer Electronics - India
63
81
28.6%
Consumer Electronics - Total
462
481
4.1%
General Merchandise - Total
1,558
1,547
(0.7%)
303
311
2.6%
-
177
-
Total First Quarter Sales
13,367
13,910
4.1%
Total First Quarter Sales (excluding Petrol)
11,927
12,422
4.2%
Supermarkets Division
BIG W
Consumer Electronics - Aust / NZ
Hotels
Home Improvement
1. Includes Wholesale division previously reported separately
1.8%
FY11 Guidance
Net Profit After Tax is
expected to grow in the
range of 8% to 11%
Quantum Project
• Quantum will deliver reduced costs and improve efficiencies
across all Woolworths businesses over the next 5 years
• This project will focus on all aspects of our business including
– End to End supply chain — move to the next level
– Procurement (not for resale) — lowering our costs
– Operational work practices — improving efficiency and lowering costs
– Global direct sourcing — enhancing capability and lowering costs
– Support structures — significantly improving efficiency
• Several key initiatives have commenced
• The Quantum project follows in the tradition of Project Refresh
• Benefits emerging in both Gross Margin and CODB over next 5 years, which
will be shared between customers and shareholders
Leadership in corporate responsibility
Leadership in corporate responsibility
Green stores up
and running
Lost time injury
frequency rate for
the full year
reduced by
53
34%
Invested into
supporting our
communities
$36.3
million
2015 new store format
Online
Home improvement
COMING
SOON
Home improvement
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Thank you for your attention
1. Financial Statements
and Reports
2. Remuneration Report
3. Election of Directors
Carla (Jayne) Hrdlicka
Stephen Mayne
Ian Macfarlane AC
4. Woolworths Long-Term
Incentive Plan
5. Alterations to the
Constitution
6. Fees Payable to
Non-Executive Directors