Doing the right thing by our business
– reducing risk, protecting our reputation, looking after our people, our customers, our shareholders and the resources that our business depends on.
Our aim is to have a responsible and sustainable business today and long into the future. A business that is:
– profitable
– looks after its people
– provides service, quality, value for money and choice to our customers
– deals fairly and with integrity with suppliers
– invests in the community
– protects the environment and natural resources that sustain our business
1

Retail brands in
Australia and
New Zealand
419,304 shareholders
Ranked 26th globally, and 3rd in
Asia Pacific, in the
2010 Deloitte
Touche Tohmatsu
Global Powers of
Retailing report
(based on annual sales revenue)
2010 Sales
Revenue was
$51.7b
3,199 stores in Australia and New Zealand
2010 EBIT was
$3,082.1m
188,065 employees
$36.3m invested in local communities
2

ALH Group
3

– We report our ESG performance annually in accordance with
Global Reporting Initiative (GRI) guidelines and our reports are independently verified
– Our 2009 and 2010 reports have achieved GRI A+ rating for completeness of disclosure
– Association of Chartered Certified Accountants (ACCA) awarded our
CR reports as best report in the retail sector for the past two years
– Signatory of the United Nations Global Compact (UNGC)
Woolworths is a signatory of the United
Nations Global Compact and a member of the Global Compact
Network Australia.
4

– Competition in the retail sector and issues relating to cost of living
– delivering value for money to our customers
– Food security, sustainable food production, food waste
– Sustainable consumption vs business growth – is it possible to have prosperity without growth?
– Supply chain efficiencies to manage cost of doing business and deliver value to our customers – electricity/carbon, water, waste and packaging costs
– Responding to the expectations of the “ethical/green” consumer
– turning the potential in this segment to real sales
– New store developments and community opposition in some cases
– Responsible retailing of alcohol, going beyond regulatory compliance
– Responsible service of gaming and revenue from poker machines
5

– Staff/talent retention
– Over 188,000 employees, with turnover requiring the recruitment of 38,000 employees
– Continued commitment to promoting from within
– 46% of Executives have been with the company more than 10 years
– Gender balance in senior levels of management
– 54% of employees are women and 27% of our leadership positions are held by women
– Committed to have 33% representation of women as Non-executive Directors on the board
6

Integration in mainstream business frameworks
– Board Charter and responsibility
– Risk Management framework
– Strategic Planning framework
Implementation Oversight and Performance Review
– Senior management has overall responsibility to ensure implementation of our key initiatives and targets, appropriate resourcing and performance monitoring
– Special Committees of senior management monitor implementation progress on Health and Safety and Sustainability objectives:
– Safety and Health Executive Committee
– Sustainability Executive Committee
7

– With the introduction of the Modern Award,
Supermarkets are paying between 2–6% above the standard entry level minimum wage
– Invested over $63 million in learning and development initiatives
113 graduates have been recruited since 2005, with a retention rate of 93%
8

54% of our workforce are women and we continue to focus on the progress of gender diversity, particularly in leadership roles
Gender Ratio by Employment Level – Female
Senior Executives
Senior Managers
Managers
Office/Support Employees
Store Employees
Distribution Employees
Tradespeople and Apprentices
Plant Employees
Note: 2010 Data does not include DSE NZ.
2010
%
27
25
43
50
59
13
9
0
9

– Achieved a 34% reduction in Lost Time Injury Frequency Rate (LTIFR), down to 10.34 (target for FY10 was 10)
– LTIFR target for FY11 is 8
Woolworths Limited LTIFR Results 2008–2010
LTIFR (million hours worked)
LTIFR (200,000 hours worked)
10

Targets and commitments
40% reduction in carbon emissions on projected growth levels by
2015, bringing emissions back to 2006 levels
25% reduction in carbon emissions per carton delivered by
Woolworths-owned trucks by 2012
Up to
30% reduction in carbon emissions from our company fleet by 2010
(from 2006 fleet emissions)
200m litres
Reduce water usage by at least
200m litres a year by 2010 zero food waste to landfill by 2015
Implement ethical and sustainable sourcing policies
11

2010 performance
– Total carbon emissions of 4.09 Mt, up from 4.05 Mt from last year
– Carbon emissions from electricity use and refrigerant loss from facilities is 500,000 tonnes (13%) lower than projected business-as-usual emissions
– 51 green supermarkets have been constructed, reducing carbon emissions per square metre by more than 25%
– Logistics carbon emissions per carton delivered reduced by 9.4% since 2007
– Carbon emissions from company car fleet reduced by 11.1% or equivalent of taking 602 cars off the road
Total Emissions from Facilities 2006–2010 (Million Tonnes of CO
2
-e)
5.0
4.5
4.0
3.5
Actual emissions (Mt)
Business as usual
2015 Target
3.0
2.5
2.0
12

2010 performance
Resource Intensity
Energy Intensity (GJ/$M)
Carbon Intensity (T CO
2
-e/$M)
Water Intensity (kL/$M)
Waste Intensity (T/$M)
Recycling Intensity (T/$M)
Per $M Sales
2009 2010
213.0 208.4
55.7
38.2
3.6
4.1
56.1
34.9
2.9
4.0
Per $M EBIT
2009 2010
3,751.7 3,496.0
981.0
673.0
63.2
71.4
940.7
585.9
48.2
67.3
13

4283.000000
3671.142857
3059.285714
2447.428571
1835.571429
1223.714286
611.857143
0.000000
1.430000
1.225714
1.021428
0.817143
0.612857
0.408571
0.204286
0.000000
2010 performance
Energy use per square metre of trading area
20% Reduction FY02 to FY10
Carbon emissions per square metre of trading area
17% Reduction FY02 to FY10
14

2010 performance
– Water Wise Project, flow restrictors and water efficient fittings, has delivered an estimated saving of 302 million litres of water in 2010
– Surpassed our 200 million litre target
– Two large scale rainwater harvesting projects, operating at Distribution
Centres in Minchinbury and Wyong, captured 16.45 million litres of rainwater
Annual water saving
Annual water saving (ML)
15

2010 performance
– Total volume of material recycled or diverted from landfill increased by 2.8% to 207,527.9 tonnes
– Almost 60% of our waste material is diverted from landfill through recycling and beneficial reuse
– Recycled an estimated 28.7 million clothes hangers at BIG W
– Recycled mobile phones and accessories, printer consumables and batteries through
Dick Smith stores
Recycling volumes
Material Recycled (T)
16

ethical and sustainable sourcing
Responding to consumer concerns regarding:
– child labour and working conditions in developing countries
– animal welfare
– depleting natural resources
– deforestation and impact on animal habitat
17

ethical and sustainable sourcing
Labour conditions and social compliance
– Our policy is based on ILO conventions
– All suppliers are expected to comply with the policy
– We have a third party auditing program for suppliers of our own brands
– The most common area of non-conformance is working hours and living wages
Ethical Audit Program
Audit Results – Factory Classification in 2010
Approved
Conditionally Approved
At Risk
Audit Results – Number of Corrective Actions Raised in 2010
Critical
High
Low
6%
72%
22%
2%
78%
20%
18

ethical and sustainable sourcing
Sales Growth for Free Range Products
Product
Percentage increase in sales in 2009*
%
Percentage increase in sales
Percentage of total category in 2010* sales in 2010
% %
Free range chicken (Macro meat) 33.6 30.1 16.4
Free range chicken (Macro deli)
Free range eggs
Barn laid eggs
Organic Macro meat n/a
32.0
20.7
25.8
263.8
15
11
10.0
2.3
35.8
11.3
0.8
* Percentage increase based on increased sales from previous financial year.
19

ethical and sustainable sourcing
– Select eggs are free range or barn laid
– Discontinued caged eggs in Select at the end of 2009
– Clear signage and shelf layout in stores to differentiate free range, barn laid and caged eggs
– Caged eggs still represent 49.8% of our total egg sales by value
– 36% of all fresh pork that is supplied to Woolworths is produced from pigs born to sows that have been reared in a sow stall free environment. By the end of 2011 this will have increased to 42%
In 2010, we sold free range pork in 272 stores in Australia
20

ethical and sustainable sourcing
Palm Oil
– Not using palm oil where there are healthier alternatives
– 95% of our Select brand products do not contain palm oil
– Membership to Roundtable on Sustainable Palm Oil (RSPO)
– Clear labelling of palm oil
– Moving to certified sustainable palm oil for all our own brands by 2015
Timber, pulp and paper
– We aim to source certified sustainable timber, pulp and paper
– Select brand tissues, toilet paper and kitchen towels are all PEFC certified
– Our catalogues are PEFC certified
– The copy paper we use in our offices is FSC certified
– We are working on a timber sourcing policy for our home improvement business
FSC – Forest Stewardship Council
PEFC – Program for Endorsement of Forest Certification
21

ethical and sustainable sourcing
Fish sourcing
– Review of our range is underway
– Delisting of three overfished species from our fresh range
– tuna
– swordfish
– orange roughy
– More Marine Stewardship Council certified products will also be ranged in the new year
By-catch, catching methods and other risk issues are being considered in the review process
22

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