28 February 2013
FIRST HALF PROFIT REPORT AND DIVIDEND ANNOUNCEMENT FOR THE
27 WEEKS ENDED 30 DECEMBER 2012
Net Profit After Tax From Continuing Operations Before
Significant Items1 up 5.5% to $1,247.2 million
Net Profit After Tax up 19.4% to $1,154.8 million
Fully Franked Dividend of 62 Cents Per Share up 5.1%
-
Sales from continuing operations of $30.0 billion, up 4.8%
Trading EBIT from continuing operations up 7.0% before significant items1, Central
Overheads and the investment in Home Improvement
EBIT from continuing operations before significant items1 up 6.1% to $1,934.7 million
(total EBIT up 19.1%)
Net profit after tax from continuing operations before significant items1 up 5.5% and
4.2% increase in EPS from continuing operations before significant items1 to 101.1 cents
19.4% increase in net profit after tax and 17.9% increase in EPS to 93.6 cents
Over $2.0 billion2 returned to shareholders via dividends and the in-specie distribution
Woolworths Chief Executive Officer and Managing Director, Grant O’Brien, said: “This result is a reflection
of the sharpened focus on our core businesses. We have grown both sales and profits by pursuing a
customer led strategy.
“We report a pleasing increase in net profit after tax from continuing operations before significant items1
of 5.5%. Growth in trading EBIT from continuing operations of 7.0% before significant items1, Central
Overheads and the investment in Home Improvement reflects the good momentum generated across our
businesses during the first half of the financial year.
Media Release
Sustainable, profitable growth as strategic initiatives start to deliver results
“Despite ongoing challenging retail conditions as well as the transformational path our business is
pursuing, growth in profitability in our core businesses was strong. Our strategic initiatives, which are
providing a platform for the future success of Woolworths, continue to generate enhanced returns for
our shareholders whilst improving the shopping experience of our customers.
“We are closer to our customers than ever before and have a deep understanding of their needs and
drivers. This will help us to continue to achieve the win/win outcome for customers, suppliers and
shareholders of lowering prices, improving quality and delivering sustainable profit growth.”
Woolworths Limited Chairman, Ralph Waters, commented: “Supported by a solid first half trading result,
shareholders will benefit from a 5.1% increase in the fully franked interim dividend per share to 62 cents
($0.8 billion), up from 59 cents last year. This is in addition to the return of $0.5 billion to shareholders on
establishment of the SCA Property Group during the half. We continue to invest in the future success of
our business with good progress being made on our strategic initiatives.
“I am tremendously proud to have been appointed Chairman of this great Company and believe the
business is well placed to continue to reward both our customers and shareholders over the coming
years.”
Note: This announcement contains certain non-IFRS measures that Woolworths believes are relevant and appropriate to
understanding its business. Refer to Appendix Two for further information.
2
PROGRESS AGAINST STRATEGIC PRIORITIES
In late 2011, Woolworths’ new strategic priorities and business initiatives to ensure future growth and
enhance shareholder value were outlined to investors.
“During HY13, we have seen pleasing progress against our strategic priorities and initiatives, with a
central focus on enhancing all aspects of the shopping experience for our customers whilst also rewarding
our shareholders through higher returns” Grant O’Brien said.
1. Extend leadership in food and liquor





Fresh improvement programs
 Since launching ‘Australia’s Fresh Food People’ in June 2012, our teams have increased their
focus on delivering great quality fresh products to enhance customer satisfaction, with our
freshness and quality continuing to improve
 We have maintained our leadership position in Fresh throughout the half
 Outside of Fresh, we have improved our performance in packaged goods and have made good
progress in aligning our program with our supply partners. We remain focused on building further
momentum in this area to achieve the results we are targeting
 We have continued to provide great value offers in HY13 including ‘For Less for Families’, ‘Lamb
Cuts for Less’ and deep cut half-price specials which have demonstrated our ongoing price focus
with customers
Value improvement programs
 HY13 also saw our renewed focus on innovative value campaigns such as ‘Sticky Specials’,
Everyday Rewards ‘Extra Specials’ and ‘Cash for Christmas’ delivering results. Each of these
activities resonated well with our customers, resulting in improved market share and positive
customer feedback
More customers benefiting from our merchandising innovations
 We remain on track to open 34 new supermarkets in FY13. Our latest format store, Wolli Creek,
incorporates our latest merchandising innovations including our new produce layout and fresh
cut fruit bar, fresh pizza bar, meat servery and sushi kiosk, all of which have been a great success
with our customers. We are now rolling out these innovations across many other stores
Liquor growth accelerating
 Liquor continued to deliver strong sales and market share growth in HY13, underpinned by the
ongoing expansion of Dan Murphy’s, a refreshed and evolving Convenience offer (BWS), which is
delivering improved comparable sales growth, and a fully integrated ‘direct to consumer’
business. Liquor remains well positioned to anticipate and satisfy our customers’ needs across
shopping occasions and ways of shopping
New Zealand market share growth
 Our New Zealand business continued to gain market share in a retail environment characterised
by low growth and low inflation with increasingly challenging retail trading conditions
 The next stage of our New Zealand Supermarkets strategy is now in its final stages of planning
3
2. Act on our portfolio to maximise shareholder value

Property divestment and capital management
 During the half, we created a new ASX listed Real Estate Investment Trust, the Shopping Centres
Australasia Property Group (SCA Property Group), through an in-specie distribution of stapled
units in SCA Property Group to all Woolworths shareholders. The sale of 69 neighbourhood and
sub-regional shopping centres and freestanding retail assets (including four New Zealand
development properties to be completed and sold during the second half of FY13) independently
valued at approximately $1.4 billion to SCA Property Group has reduced the quantum of property
on the Woolworths balance sheet, releasing capital to enable a greater focus on growth in our
core retail businesses
 Consumer Electronics divestment
 We completed the divestment of our retail and wholesale Consumer Electronics businesses
during the half year to ensure that focus and resources are on segments that promise the most
long-term growth. The sale of the Dick Smith Electronics business in Australia and New Zealand to
Anchorage Capital Partners was completed on 26 November 2012 and the sale of our Consumer
Electronics business in India to Infiniti Retail Limited was completed on 15 October 2012
 Australia’s best and most responsible hotels
 Customer appreciation of our pub offer has grown. This is underpinned by our continued focus on
being Australia’s most responsible operator of local pubs with an industry leading hotel and
gaming charter underpinning strong commitment to responsible service
 BIG W’s evolving customer offer
 BIG W has continued to make good progress in evolving its offer to meet the changing needs of
consumers as part of realising its ambition to be Australasia’s leading multi-option discretionary
retailer
3. Maintain our track record of building new growth businesses

Delivering our multi-option growth opportunity
 Multi-option growth remains a key focus for the Group and continues to evolve at pace:
 40% increase in total online sales from continuing operations for the half year
 Transactional mobile sites are now actively used for all our brands
 The downloads of our mobile applications continue to increase with over 2.8 million Apps
now downloaded across our businesses
 A click and collect service is now available in all Dan Murphy’s stores nationwide – a first for a
major Australian national retailer. The click and collect service is also available in all Masters
stores and is being rolled out progressively in our Woolworths and Countdown Supermarkets
 Penetration of each of our online businesses is rapidly growing. We are focused on increasing
our online capabilities
4
3. Maintain our track record of building new growth businesses (continued)

Providing Australia’s best Home Improvement offer
 Our Home Improvement business continues to grow with 25 Masters stores trading at the end of
the half year. We now have Masters stores in all mainland Australian states and the ACT and we
continue to be pleased by the progress of this business
 The launch of the ‘I made it with Masters’ marketing campaign has received a positive reception
in all markets. Customer feedback has been positive and we continue our new store rollout plan
which will include having at least 30 stores open at the end of FY13
 Expansion of our Hotels business
 During the half year, 32 hotels and their associated retail liquor outlets were acquired, 29 of
which related to the acquisition of hotels from the Laundy Hotel Group, Waugh Hotel Group,
DeAngelis Hotel Group and Bayfield Hotel Group (the Laundy transaction). We have completed
the system integration for these new sites with our focus now on continuing to implement ALH
operational standards into these venues
4. Put in place the enablers for a new era of growth

Improving our supply chain
 We continue to innovate in supply chain. Examples of recently commissioned infrastructure
include our Distribution Centres (DCs) at Hoxton Park (NSW), Christchurch (NZ) and Launceston
(Tasmania)
 Our state of the art Hoxton Park DC, the most advanced retail general merchandise DC in
Australia, which commenced operations in FY12, has driven significant efficiency improvements
in our BIG W business. In October 2012, this DC also commenced supporting our Home
Improvement business
 We are now focused on the evolution of supply chain and replenishment improvements across
our business
 Customer data improving our offer
 Our ‘Category Lab’ is playing a tremendous role in converting Everyday Rewards data into rich
customer insights, which help our category managers design our ranges, layout, pricing and
tailored promotions to best meet our customer needs
 Cost leadership
 Cost management in our trading divisions during the half was excellent and is evidence of the
productivity programs delivering cost leadership throughout the Group
 Increasing our talent pool
 We continue our focus on assembling a world class retail team by blending the best local and
international talent at Board, Management Board and Senior Management level. Key new
recruits during the half included a new Director of Human Resources, Group Marketing Director,
Group Commercial Director (Global Sourcing), Head of Online Innovation and National
Merchandise Manager – Dan Murphy’s
5
BUSINESS PERFORMANCE
Earnings Before Interest and Tax (EBIT)
($ million)
Continuing Operations (before significant items1)
Australian Food and Liquor
Petrol
Australian Supermarkets
New Zealand Supermarkets (NZD)
New Zealand Supermarkets
BIG W
Hotels
Total Trading Result – Continuing Operations
HY12
(27 weeks)
HY13
(27 weeks)
Change
1,493.5
67.4
1,560.9
149.1
118.5
119.6
116.2
1,915.2
1,583.9
71.0
1,654.9
162.3
124.7
129.5
140.8
2,049.9
6.1%
5.3%
6.0%
8.9%
5.2%
8.3%
21.2%
7.0%
(92.0)
1,823.2
(115.2)
1,934.7
25.2%
6.1%
22.2
22.2
2.5
2.5
n.c3
n.c3
Total Group EBIT (before significant items1)
1,845.4
1,937.2
5.0%
Significant Items1 (before tax)
One-off loss on SCA Property Group transaction
Consumer Electronics provision / Net loss on disposal of
Consumer Electronics businesses
(300.0)
(32.8)
(63.7)
n.c
n.c
Total Group EBIT (after significant items1)
1,545.4
1,840.7
19.1%
Central Overheads and Home Improvement
Group EBIT – Continuing Operations
Discontinued Operations (before significant items1)
Consumer Electronics – Australia, New Zealand and India
Group EBIT – Discontinued Operations
Net Profit after Tax (NPAT)
($ million)
Profit after income tax and non-controlling interests
(before significant items1)
Continuing Operations
Discontinued Operations
Total Group profit after income tax and non-controlling
interests (before significant items1)
Significant Items1 (after tax)
One-off loss on SCA Property Group transaction
Consumer Electronics provision / Net loss on disposal of
Consumer Electronics businesses
Total Group profit after income tax and non-controlling
interests (after significant items1)
HY12
(27 weeks)
HY13
(27 weeks)
Change
1,182.5
15.6
1,198.1
1,247.2
1.8
1,249.0
5.5%
n.c3
4.2%
(231.2)
(28.5)
(65.7)
n.c
n.c
966.9
1,154.8
19.4%
6
BUSINESS PERFORMANCE
Grant O’Brien commented: “The 5.5% increase in net profit after tax from continuing operations before
significant items1 was a strong result reflecting the sharpened focus on our core businesses and our
customers in the past six months. The growth in our trading EBIT from continuing operations before
Central Overheads, our investment in Home Improvement and significant items1 of 7.0% was particularly
pleasing, demonstrating the strength of our core businesses and the success of our strategic initiatives.
“We continue to deliver value to our customers through ongoing price investment in the products that
matter most to families, as well as providing meaningful rewards to our loyal customers, allowing them to
stretch every dollar further. Our continuing operations have served an additional 28.1 million customers
during the half year and our online presence continues to grow, with sales increasing 40% for our
continuing operations.”
Sales from continuing operations grew by 4.8% to $30.0 billion with increases in market share, customer
numbers and items sold. Australian Food and Liquor performed well and BIG W delivered a solid sales
result for the first half, with both businesses benefiting from strong Christmas campaigns. Hotels
benefited from hotel acquisitions and changes to the Victorian gaming regulations and Home
Improvement continued to grow with the opening of ten new Masters stores during the half. New
Zealand Supermarkets increased market share in a very challenging retail environment.
Gross margin as a percentage of sales for continuing operations increased 62 bps compared to the prior
half year, reflecting the benefits of more effective promotional activity, better buying, including the
benefits of increased direct global sourcing, reduced shrinkage, efficiency improvements from the
operation of new DCs and changes in sales mix. We have continued to reinvest in lower prices, delivering
greater value to customers.
Cost of Doing Business (CODB) before significant items1 for our core retail trading businesses (Australian
Food and Liquor, New Zealand Supermarkets and BIG W) was well controlled during the period and
increased by 11 bps when compared to HY12. Excluding the impact of additional costs associated with
the Hoxton Park DC, CODB as a percentage of sales for these businesses increased 2 bps when compared
to the prior half year.
Within our Australian Food and Liquor business, CODB as a percentage of sales remained flat when
compared to the prior half year. This is a particularly strong result given additional costs incurred,
including higher electricity costs, and a large number of new stores yet to reach mature sales levels.
CODB as a percentage of sales for continuing operations before significant items1 increased 54 bps
compared to HY12. This has been impacted by our Home Improvement business which remains in start
up phase and our Hotels business which experienced incremental costs relating to hotel acquisitions and
the Victorian gaming regulatory changes.
Across the Group, costs have been very well controlled in dollar terms, with areas of sell price deflation
limiting the ability to fractionalise costs, particularly in our BIG W business.
7
BUSINESS PERFORMANCE (continued)
EBIT from continuing operations before significant items1 increased 6.1% on the previous half year. This
result was underpinned by a 6.1% increase in EBIT from our Australian Food and Liquor business, 21.2%
EBIT growth in our Hotels business, 8.3% EBIT growth in BIG W as well as 8.9%4 EBIT growth before
significant items1 in our New Zealand Supermarkets business. The EBIT margin increased 8 bps for
continuing operations before significant items1.
NPAT from continuing operations before significant items1 increased 5.5% to $1,247.2 million with
corresponding EPS up 4.2% to 101.1 cents. In light of the investment we are making in our new Home
Improvement business, the change agenda we continue to drive through our business, ongoing subdued
retail trading conditions and low sell price inflation, this is a very solid result. Total Group NPAT was up
19.4% on the previous half year.
Closing inventory days for continuing operations were up 2.0 days on the previous half year to 38.8 days.
This increase is a result of building inventory in our Home Improvement business as well as incremental
inventory as a result of increased direct global sourcing. Excluding Home Improvement and incremental
foreign sourced inventory, closing inventory decreased 0.8 days when compared to HY12. In light of the
number of new stores and additional DC infrastructure across the group, this is a pleasing result which
reflects ongoing improvements in stock management.
Cash flow from operating activities before interest and tax increased 25.2% on the previous half year to
$2,900.0 million. Cash flows were positively impacted by a difference in the timing of the reporting date
relative to the prior half year and the impact of this on creditor payments (reporting date at HY13: 30
December 2012 and HY12: 1 January 2012). Excluding this, cash from operating activities before interest
and tax increased 4.3%. Net interest paid of $190.4 million (HY12: $187.7 million) was broadly consistent
with the prior half year. Tax payments increased to $507.8 million in HY13 (HY12: $455.7 million) due to
higher tax instalments across the Group. Tax refunds of approximately $30 million relating to the
lodgement of the Group’s 2012 tax returns will be received in the second half of FY13.
Total cash provided by operating activities was $2,201.8 million, up 31.7%.
The cash realisation ratio5 before significant items1 was 127% or approximately 100% after excluding the
difference in the timing of the reporting date relative to the prior half year and the impact of this on
creditor payments. This is a solid outcome as it includes the investment in our Home Improvement
business.
We continue to enhance long term shareholder value by investing capital in core and growth
opportunities such as our new store pipeline, our multi-option offer, our Home Improvement business
and bolt on acquisitions, such as the Laundy transaction, as well as optimising the existing operations.
Our fixed charges cover ratio6 before significant items1 remains strong at 3.0 times. We have maintained
our financial strength and flexibility as reflected by the maintenance of our strong investment grade
credit ratings by Standard & Poor’s and Moody’s. We continue to seek to optimise our returns on capital
over time.
8
FOOD, LIQUOR AND PETROL
Key highlights for the half
Australian Supermarkets Strong growth in sales and EBIT, with increased market share, customer
numbers and items sold. 17 additional supermarkets opened during the half, with a further 17
planned for the remainder of the financial year
Liquor Sales and profitability growth across all brands has highlighted the relevance of each of
our liquor offerings – Dan Murphy’s, Convenience (BWS and Woolworths Liquor) and Direct
(Cellarmasters, Langton’s, winemarket.com.au and Dan Murphy’s online)
New Zealand Supermarkets Despite challenging retail trading conditions, achieved growth in
sales and EBIT as well as market share, customer numbers, basket size and items sold
Australian Supermarkets (including Liquor and Petrol)
Sales - Food and Liquor ($ million)
Sales - Petrol ($ million)
Sales - Total ($ million)
Gross Margin (%)
Cost of Doing Business (%)
EBIT to Sales (%)
EBIT ($ million)
Funds Employed ($ million)
HY12
(27 weeks)
19,571
3,434
23,005
24.83
18.04
6.79
1,560.9
4,188.5
HY13
(27 weeks)
20,488
3,393
23,881
25.14
18.21
6.93
1,654.9
4,122.0
Change
4.7%
(1.2)%
3.8%
31 bps
17 bps
14 bps
6.0%
(1.6)%
Australian Food and Liquor (excluding Petrol)
Australian Food and Liquor sales for the half year were $20.5 billion, an increase of $0.9 billion or 4.7% on
the previous year. Comparable store sales in Australian Food and Liquor for the half year increased 2.4%
(HY12: 1.5%).
During the half, we increased market share, customer numbers, basket size and items sold. We served on
average 20.2 million customers per week, an increase of 4.6% when compared to the same period in the
prior year.
The standard shelf price movement index7 for the half year was inflation of 1.0% (HY12: inflation of 0.9%).
Whilst Produce returned to inflation during the half, it went back into deflation in December. Excluding
Produce, the shelf price index for the half year was inflation of 0.8% (HY12: inflation of 0.8%).
Average prices continued to experience deflation for the half year of 2.8% (HY12: deflation of 3.7%) when
the effects of promotions and volumes are included. Through campaigns such as ‘For Less For Families’,
‘Lamb Cuts for Less’ and deep cut half-price specials we have continued to lower prices on everyday
product lines for the benefit of our customers.
9
Australian Food and Liquor (excluding Petrol) (continued)
We opened 17 Australian Supermarkets during the half year bringing the total to 887. In line with our
strategic initiatives to enhance the shopping experience for our customers, 110 Australian Supermarket
refurbishments were completed during the half. This included four full refurbishments and 106 part
refurbishments to revitalise our Fresh offer and implement our latest merchandising innovations in
stores. We also opened 11 Dan Murphy’s during the half year taking the total to 1718. We plan to open a
further 17 Supermarkets and five Dan Murphy’s in the second half of FY13.
Australian Food and Liquor EBIT increased 6.1% to $1,583.9 million for the half year, with EBIT margin
increasing 10 bps.
The increase in gross margin reflects improvements in buying, including benefits gained from direct global
sourcing expansion, a significant focus on reducing shrinkage, more effective promotions and growth of
our exclusive brand ranges. Much of the benefit received from these initiatives has been reinvested in
price reductions for the value conscious customer.
Australian Food and Liquor CODB as a percentage of sales was flat when compared to the prior half year.
This is a particularly strong result given additional costs incurred, including higher electricity costs, and a
large number of new stores yet to reach mature sales levels.
Petrol
Petrol sales for the half year, including Woolworths/Caltex alliance sites, were $3.4 billion, a decrease of
1.2% on the previous half year. Average fuel sell prices for the half year were 141.3 cpl (HY12: 140.8 cpl).
Petrol volumes decreased 2.8% for the half year. Whilst competitor activity was focused around ongoing
increased fuel discounts, Woolworths’ customers were instead rewarded through more targeted fuel
offers and enhanced Supermarket offers.
Comparable (dollar) sales decreased 3.2% and comparable volumes decreased 4.7% for the half year.
Total merchandise (non-fuel) sales increased 5.4% for the half year. Comparable merchandise (non-fuel)
sales increased 0.9% for the half year.
Petrol EBIT increased 5.3% to $71.0 million for the half year through a combination of more targeted fuel
discounts, a shift in sales mix towards premium unleaded and diesel fuels, stronger non-fuel sales, buying
benefits achieved with our supply partner Caltex and tight cost control.
We opened eight petrol canopies during the half year bringing the total to 606, including 131
Woolworths/Caltex alliance sites. We plan to open a further eight sites in the second half of FY13.
10
Australian Supermarkets – Progress against strategic objectives
1. First choice for fresh food
 Australians have enjoyed continuing improvement in the quality and freshness of our offerings
since the launch of ‘Australia’s Fresh Food People’ in June 2012. From our suppliers to our stores,
the entire fresh food team have raised the bar on fresh foods
 We have continued the delivery of our ‘Australia's Fresh Food People’ brand campaign through a
variety of channels including ‘Fresh Fairs’ held in store as well as leveraging our partnership with
the ‘Sunrise’ morning television program to include integration of fresh food and cooking
segments
 Our newest store design, which showcases our commitment to fresh foods, was unveiled in Wolli
Creek, Sydney, in October 2012. The new produce layout and fresh cut fruit bar, fresh pizza bar,
meat servery and sushi kiosk have all been a great success with our customers. We are now
rolling out these innovations across many other stores
 We have achieved outstanding meat and seafood results courtesy of innovation and an eye for
delivering consistent quality
 42 new bakeries were introduced to our stores during the half year. We now bake fresh bread
every day in 652 stores
 Outside of Fresh, we have improved our performance in packaged goods and have made good
progress on aligning our program with our supply partners but remain focused on building further
momentum in this area to achieve the results we are targeting
2. Unbeatable value
 We have continued to work hard to build confidence in our value contract with customers
ensuring we offer the value they expect and deserve
 In August 2012, we cut the retail price of Australia’s favourite lamb cuts by 20% to 30%, delivering
Australian ‘Lamb Cuts for Less’ to our customers. Australian lamb farmers also benefited from
this with a significant increase in volumes sold
 In October 2012, we launched ‘For Less for Families’ where we cut the price on products that
families buy the most through to Christmas 2012. The launch week produced our highest market
share during the half
 Our Christmas campaign was supported with unique and targeted customer offers enabled by our
customer analytics infrastructure including ‘Cash for Christmas’, ‘You Choose’ and our ‘Christmas
Card’ which was sent to 400,000 of our most loyal customers
 We are continuing to reduce waste and the cost of shrinkage and have used these savings to
invest in lower sell prices
 We have continued to lower prices on everyday product lines with average prices in deflation of
2.8% for the half
 Homebrand has continued to provide an effective value entry point
11
Australian Supermarkets – Progress against strategic objectives (continued)
3. Customer led – the power of insights
 Our ‘Category Lab’ has covered almost 75% of our sales base with these reviews now being
embedded in our underlying continuous category review process. As customer centric deep dives
are performed for each category, we are uncovering many opportunities to enhance our offer
with better ranges, more tailored promotions and improved category layouts
 We have continued to increase the utilisation of Everyday Rewards insights for the identification
of customer groups to enable more targeted and relevant campaigns for our customers
 All store managers have transferred to iPads, providing them greater flexibility and enabling them
to spend more time on the shop floor serving customers
 We continue to integrate customer insights into our ongoing strategic plans by utilising our
extensive customer feedback programs such as the weekly marketing monitor, weekly ‘Customer
Talkback’ focus groups, brand tracker and ad-hoc customer studies
4. Exciting new offers
 Fresh sushi is now being made daily in 18 stores, with a plan to have 49 kiosks by the end of FY13.
The new sushi flavours have been well received by our customers
 Our fresh pizza bars are now in five stores, delivering quality pizzas made in store daily, with a
plan to have 17 bars by the end of FY13
 Our extended My Kitchen and Health & Beauty ranges continue to be rolled out across our stores
 Christmas saw the launch of our newest Own Brand range, ‘Gold’, which offers superior quality
and mouth watering indulgent food products that are a must for the discerning shopper. 18
‘Gold’ products were launched in time for Christmas
 The trend towards eating food that is better for you or better for the environment continues,
with our Macro Wholefoods Market range sales growing at over 40% on the previous half year
12
Australian Supermarkets – Progress against strategic objectives (continued)
5. Shopping tailored for our customers
 The ongoing development of our transactional mobile site and Apps is core to our ambition to
make our customers’ shopping experience easier and more rewarding providing a seamless link
between online and bricks and mortar. Key enhancements made to the Apps in the October 2012
upgrade were:
 enabling customers to check and compare local fuel prices
 access seasonal information, such as Christmas recipes, shopping lists and other helpful
information
 The App has maintained its position in the top 10 Food and Drink Apps in the iTunes App Store
with over two million downloads to date
 Online sales continue to grow at strong rates and are up more than 50% on the previous half
year. We have a better platform and more enhancements to come
 Customers are increasingly enjoying the freedom of being able to shop online and choose
whether they want their groceries delivered or to collect them from a choice of 119 locations
13
Liquor
Liquor continues to experience strong growth across all brands. This reflects the success in our efforts to
better anticipate and meet our customers’ needs. Group liquor sales (including ALH Group on premise
liquor sales) for the half year totalled $3.8 billion (HY12: $3.6 billion).
Liquor – Progress against strategic objectives
1. Grow our network
 We opened 11 Dan Murphy’s and 30 (15 net) BWS stores during the half year. Total liquor outlets
were 1,346 at the end of the half year
 The Laundy transaction added 29 hotels and ten retail liquor outlets, including one rebranded as
Dan Murphy’s, to the network
2. Improve our store formats
 We have rebranded 176 Woolworths Supermarket Liquor sites to BWS, with a target to have the
majority of Woolworths Supermarket Liquor sites rebranded by the end of FY13. The rebranding
has involved refreshed BWS signage, aligned promotional programs, layout improvements and
investment in staff training and service. The results of the rebranding, whilst only in the very
early stages, have been positive with good customer recognition and acceptance
 We have commenced segmenting our convenience offer by shopping occasion with 28 ‘Premium’
stores trading under the BWS banner at the end of the half
3. Multi-option retail
 Dan Murphy’s online continued its excellent growth in the half year with key highlights including
the launch of a click and collect service across the entire Dan Murphy’s network (a first for a
major Australian national retailer), improved website functionality (including an improved
checkout) and the launch of our new mobile site
 Strong growth was also experienced in our other ‘direct to consumer’ businesses (Cellarmasters,
Langton’s and winemarket.com.au)
14
Liquor – Progress against strategic objectives (continued)
4. Grow own and exclusive brand share
 We formally launched the Pinnacle Liquor Group in August 2012 which aligns production,
marketing and product development teams for our own and exclusive brands under an integrated
management structure
 The establishment of the Pinnacle Liquor Group is an evolution of our private label development:
 Woolworths Liquor Group first committed to sourcing and creating exclusive brands across
beer, wine and spirits in 2003
 In June 2009, the first manufacturing assets were purchased, via a 25% stake in Gage Roads
Brewing Company (Gage Roads), the original craft brewer in WA. The Group then became
vertically integrated in wine production with the purchase of the Dorrien Estate Winery and
the Vinpac bottling operation as part of the Cellarmasters Group acquisition in April 2011
 Within the Pinnacle Liquor Group, the manufacturing assets have been integrated with the
exclusive brand sourcing team
 During the period, we saw continued strong growth in our own and exclusive brands, including
major launches such as the Sail & Anchor Craft Beer range (produced by Gage Roads) and Chris
Ringland CR and Reservation Shiraz (managed through Dorrien Winemaking and bottled at
Vinpac)
Funds Employed – Australian Food and Liquor (including Petrol)
Return on funds employed (ROFE) for Australian Food and Liquor (including petrol) for the half year was
40.7%, up from 38.3% in the prior year. The increase reflects strong EBIT growth (6.0%) combined with
stable average funds employed.
Inventory levels have continued to be well managed with closing inventory increasing 0.7 days as a result
of additional bulk wine inventory in the Pinnacle Liquor Group as part of the Group’s strategy to build
exclusive brand sales and utilise our own production facilities. Excluding the Pinnacle Liquor Group,
closing inventory days remained largely flat when compared to the prior year despite the net addition of
23 Australian Supermarkets, 16 Dan Murphy’s and 14 BWS stores since the prior half year.
15
New Zealand Supermarkets
Key highlights for the half
Sustained growth in market share, customer numbers, basket size and items sold, restricted by
the cycling of last year’s Rugby World Cup
Launch of new fully integrated multi-option marketing program, ‘Countdown’s Fresh Stories’,
with increasing multi-option presence enhancing the shopping experience for many customers
Pleasing profitability growth despite challenging retail trading conditions
$NZD
Before Significant Items1
Sales ($ million)
Gross Margin (%)
Cost of Doing Business (%)9
EBIT to Sales (%)9
Trading EBIT ($ million)
Less Intercompany Charges ($ million)
Reported EBIT ($ million)
Funds Employed ($ million)
HY12
(27 weeks)
2,879
23.02
17.75
5.27
151.7
(2.6)
149.1
3,364.7
HY13
(27 weeks)
2,944
23.28
17.69
5.59
164.5
(2.2)
162.3
3,242.3
Change
2.3%
26 bps
(6) bps
32 bps
8.4%
(15.4)%
8.9%
(3.6)%
New Zealand Supermarkets sales for the half year were NZ$2.9 billion, an increase of 2.3%4 on the
previous half year (3.1% increase in AUD). Comparable sales for the half year were flat4 (HY12: growth of
4.5%4).
The Countdown Supermarkets food price index showed inflation for the half year of 0.1% (HY12: inflation
of 1.7%). Inflation for the half was restricted by deflation in dairy, with lower costs of milk, butter and
cheese passed onto our customers, as well as dry grocery, with increased frequency of customer
promotions.
We opened four Countdown Supermarkets in the first half, bringing the total to 165. Three additional
franchise stores were opened, bringing the total to 57 at the end of the half. One Countdown store
remains closed as a result of the February 2011 Christchurch earthquake. We plan to open a further four
Countdown Supermarkets in the second half of FY13.
Trading EBIT before significant items1 increased 8.4%4,9, with EBIT margin before significant items1 up 32
bps4,9 on the previous half year. This is a strong result given the New Zealand retail environment has been
characterised by low growth and even lower inflation with retail trading conditions becoming increasingly
challenging during the half. Additionally, growth was restricted by the cycling of last year’s Rugby World
Cup finals. The result is underpinned by our strong brand, new store formats and continually improving
offers, which have enabled us to increase market share, customer numbers, basket size and items sold.
16
New Zealand Supermarkets (continued)
Gross margin increased 26 bps4 on the previous half year attributable to a variety of initiatives including
more effective promotional activity, partnering with suppliers, reductions in shrinkage and increased
direct global sourcing. We have continued to be competitive in the market with a number of cost savings
passed on to customers through lower shelf prices.
CODB as a percentage of sales before significant items1 decreased 6 bps4,9 on the prior half year to
17.69%4,9. This decrease is attributable to good cost control in a challenging sales environment and
improved productivity in the DCs.
The decrease in funds employed reflects the sale of ten New Zealand properties to the SCA Property
Group during the period partially offset by our continued investment in new stores, refurbishments and
the new DC in Christchurch.
New Zealand Supermarkets – Progress against strategic objectives
1. Single brand
 Customer appeal for the Countdown brand continues to grow
 Launch of new fully integrated multi-option marketing program, ‘Countdown’s Fresh Stories’ has
helped to increase the appeal of the Countdown brand
2. Grow Countdown network
 Network now has 165 stores, excluding Countdown Ferrymead
 Four new stores opened during the half, with four currently under construction and due to open
in the second half of FY13
3. Larger, modern format stores
 Extensions and refurbishments continue, with 75% of all stores now converted to the 2010 or
2015 format providing customers with an enhanced shopping experience
 Two refurbishments to the 2015 format were completed during the half
4. Multi-option
 New Zealand’s leading online food retailer with online sales growth of 36%4 for HY13 with a
positive response from our customers to our online offering
 Countdown Smartphone App launched during FY12 and has proved very popular, with over
200,000 downloads
 Click and collect service being rolled out progressively in our stores
17
New Zealand Supermarkets – Progress against strategic objectives (continued)
5. Grow franchise network
 Two new format FreshChoice and one SuperValue franchise store opened during the half
 Two refurbishments and one extension completed during the half
6. Grow market share
 Continued growth in market share over the half in both dollars and units sold through new
marketing and category initiatives
 We are focused on further enhancing our value perception
7. Supply chain
 Consolidated Christchurch Regional DC commissioned in July 2012 continues to improve supply
chain efficiency and store service to the South Island
18
BIG W
Key highlights for the half
Strong increase in profitability reflecting the successful execution of our strategic initiatives and
relevance of our merchandise offers
Gross margin improvement delivered through efficiency improvements with our new Hoxton
Park DC, increased direct global sourcing volumes, strong control of promotional activity, changes
in sales mix and strong inventory management
Well managed costs with CODB dollars remaining flat when excluding costs attributable to new
stores and the new Hoxton Park DC
BIG W’s business is evolving and in delivering its strategic objectives, BIG W is undertaking a
dedicated program of works similar to that being implemented in Australian Supermarkets. The
vision is for BIG W to be Australasia’s leading multi-option discretionary retailer
Expansion of the multi-option offering with online sales up 17% for the half, assisted by
customers shopping across our BIG W mobile site, iPhone and iPad Apps and the expansion of
online layby
Sales ($ million)
Gross Margin (%)
Cost of Doing Business (%)
EBIT to Sales (%)
EBIT ($ million)
Funds Employed ($ million)
HY12
(27 weeks)
2,362
30.37
25.31
5.06
119.6
734.1
HY13
(27 weeks)
2,447
31.47
26.18
5.29
129.5
791.1
Change
3.6%
110 bps
87 bps
23 bps
8.3%
7.8%
BIG W sales for the half year were $2.4 billion, an increase of 3.6% on the previous half year. Comparable
store sales for the half year increased 0.7% (HY12: decreased 2.8%).
During the half, a focus on delivering the lowest prices every day and reducing loss making promotional
activities, impacted sales however improved the profitability of some categories. Sales were also
impacted by continued declines in the Consumer Electronics category and by ongoing deflation across the
business, which was estimated to be 4.9% for the half year. However, we continue to see solid growth in
customer numbers and units sold.
We opened four new stores during the half year, bringing the total to 176. We plan to open a further two
stores in the second half of FY13.
19
BIG W (continued)
EBIT increased 8.3% to $129.5 million for the half year, with EBIT margin improving 23 bps attributable to
strong gross margins. Gross margin increased 110 bps on the prior year due to savings in freight and
outside storage costs from the operation of the new Hoxton Park DC in New South Wales, increased
direct global sourcing volumes, strategic decisions around the use of promotional activity and changes in
sales mix.
CODB as a percentage of sales increased 87 bps on the prior half year, which was in line with
expectations. The increase is attributable to the costs of operating seven additional stores compared to
the same time last year (four during HY13 and three during the second half of FY12) and costs associated
with operation of the new DC at Hoxton Park. Excluding these costs, CODB dollars were in line with the
prior year, assisted by strong control of employee costs and strategic changes to marketing.
The increase in funds employed of 7.8% reflects continued investment in the BIG W business including
seven new stores and two refurbishments since the prior half year.
Closing inventory decreased 2.0 days, driven by an increased focus on stock management.
BIG W – Progress against strategic objectives
Over the past 18 months, BIG W has made pleasing progress against its strategic initiatives and is
undertaking a dedicated program of works similar to that being implemented in Australian Supermarkets.
The strategic focus areas for the business are as follows:
1. Win on value everyday
 Our high volume value program across apparel has gone from strength to strength, almost
doubling unit sales during the half
 Our Smart Value brand continues to resonate strongly with our customers, experiencing 225%
unit growth over the first half. This has assisted in driving increased customer transactions
 Our new brand campaign launched in July 2012 – ‘Everyone’s a Winner with Australia’s Lowest
Prices - Cha-Ching!’, is continuing to gain traction with customers
20
BIG W – Progress against strategic objectives (continued)
2. Continue to grow our store footprint whilst realising our multi-option ambition
 The vision is for BIG W to be Australasia’s leading multi-option discretionary retailer. In addition
to delivering the full potential of our store network, we are focused on integrating our digital
channels with our store network and providing options for our customers in how they research
and shop
 We remain committed to growing our store network in realising our multi-option ambition.
Throughout the half we opened four new stores, and will open a further two in the second half of
FY13
3. Evolve our customer offer through merchandising and range innovation
 Whilst customer feedback rates BIG W as having the best range and in-store shopping
experience, we have continued to evolve our in-store presentation to deliver best in class
execution
 Innovation and newness in our merchandise is a key focus. Our Emerson brand (women’s
apparel) is now the number two brand in our business. During the half, we launched our Michelle
Bridges and Guy Leech active ranges and a Paul Frank range in apparel for women and children,
all of which have outperformed expectations
 We have seven stores in our latest format, all of which reflect improved adjacency and space
allocations. This includes changes to Womenswear, Menswear and Footwear, flexible fixturing
and space, improved sight lines and directional signage and a reduced cost to build and operate
4. Deliver the full potential of our existing business
 We have identified a number of opportunities to refine and align our offer with our core
customers’ needs, whilst delivering improved financial outcomes. We continue to focus on
driving gross margin improvement through expanding our direct global sourcing capability
 We commenced a review to identify and implement more productive and cost effective
processes and systems for the long term. As part of this, we have made further investments in
implementing new merchandise, back office and allocations systems, due for completion in FY13
and FY14
21
HOTELS
Key highlights for the half
Growth through acquisition Acquired 29 hotels and ten retail liquor outlets as part of the Laundy
transaction which included one rebranded as Dan Murphy’s. In addition, a further three hotels
have been acquired with four associated retail liquor outlets
Good momentum Sales and EBIT growth in a challenging trading environment assisted by the
Victorian gaming regulatory changes whereby we now own and operate gaming machines in our
own right
Commitment to responsible gaming As part of our commitment to implementing gaming precommitment technology across the network by December 2014, we have initiated a project to
replace our back of house gaming systems, with four trial sites now in operation
Sales ($ million)
Gross Margin (%)
Cost of Doing Business (%)
EBIT to Sales (%)
EBIT ($ million)
HY12
(27 weeks)
636
81.47
63.20
18.27
116.2
HY13
(27 weeks)
759
82.29
63.74
18.55
140.8
Change
19.3%
82 bps
54 bps
28 bps
21.2%
Hotel sales for the half year were $759 million, an increase of 19.3% on the previous year. Growth was
driven by hotel acquisitions as well as the overall benefit obtained through Victorian gaming regulatory
changes.
There has been a number of regulatory changes in Victoria. From 1 July 2012, ATMs were no longer
permitted in venues operating electronic gaming machines (EGMs). The removal of ATMs has had a
negative effect, not only on gaming turnover, but also on bar and food revenue. This impact was
expected and we believe it will recover as customers adjust to the new regime.
From 16 August 2012, new arrangements came into effect which allow venue operators to own and
operate EGMs in their own right. Under the new arrangements, venues acquired machines and licence
entitlements to operate machines and pay monitoring fees and other costs associated with operating
them. In return the venues receive a greater share of revenue derived from these machines. Additionally,
a restriction was placed on the total number of hotel EGMs that may be held by any one operator. This
restriction resulted in ALH being required to reduce the number of EGMs from its existing network.
Leading into the commencement of the new arrangements, ALH removed over 1,000 EGMs in order to
rebalance the network to meet this requirement. The positive contribution resulting from these changes
is in line with expectations.
22
Hotels (continued)
Relative to the broader hotel sector, our Hotel business continues to prove resilient. The diversified and
geographic spread of ALH income streams has assisted during the half to counter the challenging bar
environment experienced across most states. Our food offer remains a focus and continues to produce
good results.
The Hotel business is a key enabler of Dan Murphy’s and BWS, with 668 Dan Murphy’s stores on hotel
sites and 458 BWS stores affiliated with hotels.
We have a commitment to be Australia’s most responsible hotel and gaming operator – going above and
beyond what is required by legislation. Our plan is for all EGMs to have voluntary pre-commitment limits
installed by 2014 – two years ahead of any legislation. Additionally, our hotel and gaming charter is
subject to rigorous internal and external audits, all management and key hotel staff are given
comprehensive ongoing training and we have well established partnerships with expert groups including
Gambler’s Help and the Salvation Army.
29 hotels and ten retail outlets (including one rebranded as Dan Murphy’s) were acquired as part of the
Laundy transaction. An additional two hotels, which are part of this transaction, remain subject to
Australian Competition and Consumer Commission (ACCC) approval before completion of the acquisition.
We acquired a further three hotels with four associated retail liquor outlets during the half year. This
takes the total number of venues to 324. HY13 EBIT includes $12.8 million of acquisition costs (largely
stamp duty) which are required to be expensed through the profit and loss.
EBIT increased 21.2% to $140.8 million. This growth was driven by incremental EBIT as a result of the
Victorian gaming regulatory changes as well as sales growth and good cost control in the existing
business.
23
HOME IMPROVEMENT
Home Improvement sales increased 54.6% to $637 million for the half year. This result includes sales
from the first 25 Masters stores, 10 of which opened during the half.
Whilst still early days for our Masters business, we continue to be pleased by the progress of our stores.
Our Danks business has experienced a challenging half. With much of this business focused on servicing
trade customers, sales have been impacted by the dampened demand for building and construction
materials.
Key highlights for our Home Improvement business for the half include:
We opened 10 Masters stores, with 25 stores trading at the end of the half. Feedback from
customers has been very positive in relation to the new home improvement offering, with great
interest in our range across all departments
In line with our store roll out plan, we now have Masters stores trading in all mainland Australian
states and the ACT
We anticipate at least 30 Masters stores will be open by the end of FY13. We currently have over
115 sites in the pipeline and we plan to have approximately 100 stores trading by the end of 2016
We now have two DCs serving our Masters stores. The Hoxton Park DC began dispatching in
October 2012. This DC will provide additional support to the Home Improvement network and
will enable future freight savings
In June 2012, we launched Australia’s first online Home Improvement store through the Masters
transactional website. Multi-option retailing is a significant strategic method of selling our
products to consumers across the country. Today, with over 30,000 SKUs online, we receive over
10,000 visits to our website per day. Our website, while still growing, is enabling us to service a
wider range of customers
Danks is continuing to attract new members as they rollout a repositioned focus with Home
Timber & Hardware’s new marketing campaign, ‘Go where the tradies go’. With a targeted focus
on serious DIY and trade customers, there is a comprehensive network of Danks stores that
complement the network of Masters stores across the country
24
DISCONTINUED OPERATIONS
CONSUMER ELECTRONICS
The sale of the Dick Smith Electronics business to Anchorage Capital Partners was completed on 26
November 2012.
The sale of this business was completed on the following basis:
Under the sale agreement, Anchorage purchased 100% of the business including 325 stores
employing more than 4,500 people
Initial cash proceeds were $20 million to be received in FY13 with Woolworths also potentially
benefiting from any upside resulting from a future sale of Dick Smith by Anchorage
Lease commitments to the value of approximately $300 million (unexpired lease term) have been
assumed by Anchorage.
The sale of the Consumer Electronics business in India to Infiniti Retail Limited was completed on 15
October 2012.
In relation to the sale of these businesses, a final write-off adjustment of $63.7 million before tax ($65.7
million after tax10) was required. This largely represents the seasonal inventory build in the Australian
and New Zealand businesses in the lead up to Christmas net of the profit on disposal of the Indian
Consumer Electronics business.
As these businesses have been sold, no further losses are anticipated.
The trading results from the Consumer Electronics businesses have been disclosed as a discontinued
operation up until the dates of sale.
Consumer Electronics – Australia, New Zealand and India
($ million)
Sales
EBIT before Significant Items1
Less: Restructure Provision / Net Loss on Disposal
EBIT after Significant Items1
HY12
(27 weeks)
1,066
22.2
(300.0)
(277.8)
HY13
(27 weeks)
642
2.5
(63.7)
(61.2)
Change
n.c3
n.c3
n.c3
n.c3
Consumer Electronics sales for the half were $436 million in Australia and NZ$115 million in New Zealand
for the period the Dick Smith business was under the ownership of Woolworths.
Consumer Electronics India sales for the half were $116 million during the period this business was under
the ownership of Woolworths.
25
OVERHEADS, CASH FLOW AND BALANCE SHEET
Central Overheads (including Home Improvement)
Central overheads, including Home Improvement, have increased to $115.2 million for the half year
(HY12: $92.0 million) primarily reflecting Home Improvement start-up costs related to the Masters
business (net of Danks operating profit and before tax and non-controlling interest).
Cash Flow and Balance Sheet
Our balance sheet and cash flow remain strong.
Cash Flow
Cash generated by operating activities before interest and tax increased 25.2% to $2,900.0 million. Cash
flows were positively impacted by a difference in the timing of the reporting date relative to the prior half
year and the impact of this on creditor payments. Excluding this, cash from operating activities before
interest and tax increased 4.3%.
Net interest paid of $190.4 million (HY12: $187.7 million) was broadly consistent with the prior year. Tax
payments increased to $507.8 million in HY13 (HY12: $455.7 million) due to higher tax instalments across
the Group. Tax refunds of approximately $30 million relating to the lodgement of the Group’s 2012 tax
returns will be received in the second half of FY13.
Total cash provided by operating activities was $2,201.8 million, up 31.7%.
Cash used in investing activities decreased 73.8% to $343.6 million. Cash proceeds of $764.0 million were
received on the sale of properties to the SCA Property Group. Payments for the purchase of businesses
was $201.6 million in HY13 which largely represented the acquisition of Hotels as part of the Laundy
transaction.
Expenditure on property development and property, plant and equipment was lower than the prior year
given differences in the timing of capital projects.
Cash contributions from Lowe’s in relation to our Home Improvement business were lower during HY13
as a result of the utilisation of a new borrowing facility.
Free cash flow generated by the business was $1,974.2 million (HY12: $479.9 million). The cash
realisation ratio5 before significant items1 was 127% or approximately 100% after excluding the difference
in the timing of the reporting date relative to the prior half year and the impact of this on creditor
payments.
After taking into account proceeds from share issues and the payment of dividends, remaining free cash
flow was $1,426.5 million for the half year.
26
Balance Sheet
Key balance sheet movements for the continuing operations11 of the Group relative to the prior half year
are explained as follows:
Inventory increased 9.4%, primarily driven by the building of Masters inventory within our new
Home Improvement business, increased direct global sourcing, as well as additional bulk wine
inventory in the Pinnacle Liquor Group as part of the Group’s strategy to build exclusive brand
sales and utilise our own production facilities. Excluding Masters and the Pinnacle Liquor Group,
inventory increased 3.3% on the prior year
Trade payables increased 13.1% on the prior year and were impacted by a difference in the
timing of the reporting date relative to the prior half year and the impact of this on creditor
payments. Excluding this, trade payables increased 2.7% reflecting purchasing for the Masters
business and general business growth
Receivables increased 13.2%, reflecting general business growth as well as receivable balances in
relation to the recently completed sale of Dick Smith Electronics and creation of the SCA Property
Group
Other creditors increased, reflecting property development accruals and rental guarantee
provisions associated with the creation of the SCA Property Group
Fixed assets and investments decreased by $403.5 million to $9,020.2 million, reflecting the sale
of property to the SCA Property Group offset by ongoing capital expenditure and property
development (net of depreciation)
Depreciation and amortisation increased 6.8%. Within Australian Food and Liquor, New Zealand
Supermarkets and Petrol, depreciation was flat as a result of the cumulative impact of lower
refurbishment spend in recent years and lower depreciation relating to existing assets as they
became fully written down, offset by additional depreciation on new assets
Intangibles increased $431.1 million to $5,637.6 million reflecting intangibles related mainly to
the acquisition of hotels as part of the Laundy transaction as well as the purchase of gaming
entitlements as a result of the changes to the Victorian gaming regulations, which came into
effect in August 2012
Net repayable debt (which includes cash, borrowings, financial assets and liabilities) has
decreased $1,255.5 million reflecting an increased cash balance resulting from the sale of
property to the SCA Property Group as well as proceeds from the sale of the Consumer
Electronics businesses
Shareholders’ equity for the Group increased $145.3 million since FY12 to $8,333.5 million. This
includes a reduction of $0.5 billion reflecting the in-specie distribution to shareholders on
creation of the SCA Property Group
Return on funds employed increased 11 bps to 15.5%12. Excluding the impact of the continuing
investment in our Home Improvement business, ROFE increased 119 bps to 18.2%12.
27
CAPITAL MANAGEMENT13
Objectives
Woolworths sets its capital structure with the objective of enhancing long term shareholder value
through optimising its weighted average cost of capital while retaining flexibility to pursue growth and
undertake capital management initiatives. Consistent with this objective, Woolworths has targeted,
achieved and maintained its long standing strong investment grade credit ratings from Standard & Poor’s
and Moody’s.
Capital Management
Woolworths will seek to return capital to shareholders when that is consistent with its capital structuring
objectives and where it will enhance shareholder value. Since July 2001, over $13 billion has been
returned to shareholders through dividends (including the interim dividend for the half year ended 30
December 2012) and on-market and off-market share buy backs.
There was no share buy back activity in HY13 and none is anticipated in the second half of FY13.
The payment of the October 2012 and April 2013 dividends, as well as the in-specie distribution
associated with the SCA Property Group, will return over $2.0 billion (including the capital and dividend
components of the in-specie distribution) and $0.8 billion in franking credits to shareholders. Woolworths
expects that after these events, there will be approximately $1.6 billion of franking credits available for
future distribution.
Financing Transactions
There were no financing transactions executed during the half year and there are no maturities of debt in
the immediate term. At the end of HY13, Woolworths had $3.3 billion in undrawn bank loan facilities.
Property Sales Program
Woolworths has a history of developing marketplace style retail centres through its property
development arm. Woolworths increased its involvement in the development of sites using its own
balance sheet due to the significant decline in third party property development, which resulted in
Woolworths’ ownership of a larger (than historical) portfolio of retail centres.
Woolworths is generally not a long term holder of property assets and continues its strategy of divesting
property assets as appropriate market opportunities arise.
28
Creation of the SCA Property Group
During the half, we created a new ASX listed Real Estate Investment Trust, the SCA Property Group,
through an in-specie distribution of stapled units in this entity to all Woolworths shareholders. The
transaction involved the sale of 69 properties, independently valued at approximately $1.4 billion, to the
SCA Property Group.
As envisaged, a one-off loss of $28.5 million after tax ($32.8 million before tax) was incurred on the sale
of assets to the SCA Property Group. As disclosed in the Woolworths Explanatory Memorandum dated 5
October 2012, this primarily represents provisions for rental guarantees provided by Woolworths in
relation to specialty leasing risk.
As at 30 December 2012, 65 properties (including nine Australian properties which were under
development) had been sold to the SCA Property Group with a further four New Zealand properties to be
sold at the time their development is complete in the second half of FY13. Woolworths will complete the
construction of the development assets for consideration agreed with the SCA Property Group.
Cash consideration of $764.0 million was received resulting from equity and debt raising in the SCA
Property Group in December 2012.
At HY13, provisions associated with the transaction (largely rental guarantees) as well as accruals
representing outstanding development payments on assets sold to the SCA Property Group have been
recognised in the balance sheet. Additionally, a receivable has been recorded representing transaction
costs paid by Woolworths which will be reimbursed by the SCA Property Group.
Shareholders’ equity decreased by $0.5 billion representing the in-specie distribution to shareholders
which was comprised of an income component of $0.2 billion and a capital component (including related
transaction costs) of $0.3 billion.
On a recurring basis, this transaction, as anticipated, will add additional rental expense and reduce
specialty rental income offset by lower depreciation and outgoings expenses and lower net interest costs.
In addition to providing a return to our shareholders through the in-specie distribution, this transaction
has reduced the quantum of property on the Woolworths balance sheet, releasing capital to enable a
greater focus on growth in our core retail businesses.
29
Defined plans to continue space roll out
Space roll out is supported by detailed plans for the next 3 – 5 years identifying specific sites.
Gross Store
Openings in HY13
Target
(incl. acquisitions)
Australian Supermarkets
17
15 – 25 new Supermarkets per annum and 3%+
space growth (34 planned for FY13 with
approximately 3.9% space growth)
New Zealand Supermarkets
4
3 – 5 new Supermarkets per annum (8 planned
for FY13)
Dan Murphy’s
11
Plans to open 10 – 15 new stores per annum
targeting over 200 stores (16 planned for FY13)
BWS
30
Plans to open 6 – 10 stores (net) per annum (14
(net) planned for FY13)
Petrol
8
Will grow supporting the Supermarket roll out
strategy (16 planned for FY13)
BIG W
4
4 – 7 stores per annum (6 planned for FY13)
Hotels (ALH Group)
32
Acquire selectively as appropriate opportunities
arise
Home Improvement
10*
Planning to secure 150 Masters sites in 5 years
(from announcement of JV). Plan to open 15 –
20 Masters stores per annum
* Represents 10 Masters stores
30
OUTLOOK
Woolworths has a focused strategy which is building momentum, with benefits arising from continuing
investment underpinning long term sustainable profit growth. Woolworths remains well positioned in all
its market segments and has a strong and sustainable business model.
At the end of FY12, we provided guidance for FY13 of net profit after tax from continuing operations to
grow in the range of 3% - 6% (on a normalised 52 week basis).
Whilst the Australian and New Zealand retail sectors continue to experience some challenging trading
conditions, we have seen good progress against our strategic initiatives which have lead to strong
profitability growth for HY13.
Given this growth, we have revised our previous guidance and now expect net profit after tax from
continuing operations to grow in the range of 4% - 6% (on a normalised 52 week basis) excluding the oneoff impacts associated with creation of the SCA Property Group and the Consumer Electronics Divestment
(note: FY13 is a 53 week year).
- Ends -
For further information contact:
Media
Clare Kimball, Corporate Communications
0432 696 650
Investors and Analysts
Tom Pockett, Finance Director
(02) 8885 1105
31
Profit and Loss for the 27 weeks ended 30 December 2012
HY12
(27 weeks)
($m)
GROUP SALES
Continuing Operations
Australian Food and Liquor
Petrol
Australian Supermarkets
New Zealand Supermarkets (NZD)
New Zealand Supermarkets
BIG W
Hotels
Home Improvement
Group Sales – Continuing Operations
Group Sales – Continuing Operations (excl Petrol)
Discontinued Operations
Consumer Electronics Australia and New Zealand
Consumer Electronics India
Group Sales – Discontinued Operations
Total Group Sales
HY13
(27 weeks)
($m)
Change
19,571
3,434
23,005
2,879
2,244
2,362
636
412
28,659
25,225
20,488
3,393
23,881
2,944
2,313
2,447
759
637
30,037
26,644
4.7%
(1.2)%
3.8%
2.3%
3.1%
3.6%
19.3%
54.6%
4.8%
5.6%
873
193
1,066
526
116
642
n.c
3
n.c
3
n.c
29,725
30,679
3.2%
26.33
19.97
6.36
26.95
20.51
6.44
62 bps
54 bps
8 bps
3,074.1
(794.3)
3,290.2
(867.7)
7.0%
9.2%
2,279.8
(456.6)
1,823.2
(150.5)
(482.1)
1,190.6
(8.1)
2,422.5
(487.8)
1,934.7
(151.4)
(530.9)
1,252.4
(5.2)
6.3%
6.8%
6.1%
0.6%
10.1%
5.2%
(35.8)%
1,182.5
1,247.2
5.5%
15.6
1.8
1,198.1
1,249.0
4.2%
(231.2)
(28.5)
(65.7)
n.c
n.c
966.9
1,154.8
19.4%
3
1
MARGINS – Continuing Operations (before significant items )
Gross Profit
Cost of Doing Business
EBIT
GROUP PROFIT
1
Continuing Operations (before significant items )
Earnings before interest, tax, depreciation, amortisation and rent
(EBITDAR)
Rent
Earnings before interest, tax, depreciation and amortisation
(EBITDA)
Depreciation and amortisation
Earnings before interest and tax (EBIT)
i
Net financial expenses
Income tax expense
Net profit after income tax
Non-controlling interests
Profit from continuing operations after income tax and noncontrolling interests
1
Discontinued Operations (before significant items )
ii
Profit after income tax from discontinued operations
Group net profit after income tax and non-controlling interests
1
before significant items
n.c
3
1
Significant Items (after income tax)
One-off loss on SCA Property Group transaction
Consumer Electronics Provision / Net loss on disposal of Consumer
Electronics businesses
Group net profit after income tax, non-controlling interests and
1
significant items
32
Profit and Loss for the 27 weeks ended 30 December 2012 (continued)
HY12
(27 weeks)
($m)
Weighted average ordinary shares on issue (million)
Ordinary earnings per share (cents) – total Group
Diluted earnings per share (cents) – total Group
iii
Interim dividend per share (cents)
HY13
(27 weeks)
($m)
Change
1,217.8
79.40
79.05
59
1,233.3
93.63
93.30
62
1.3%
17.9%
18.0%
5.1%
(197.3)
43.5
(153.8)
3.2
0.1
(150.5)
(197.0)
41.5
(155.5)
2.9
1.2
(151.4)
(0.2)%
(4.6)%
1.1%
(9.4)%
1,100.0%
0.6%
i
Breakdown of net financing costs – Continuing Operations
Interest expense
Less interest capitalised
Net interest expense
Dividend income
Foreign exchange gain/ (loss)
Net financing costs – Continuing Operations
ii
Discontinued operations represents the Consumer Electronics businesses in Australia, New Zealand and India
iii
Interim dividend payable on 26 April 2013 will be fully franked at 30%
33
Group Balance Sheet as at 30 December 2012
FY12
24 June 2012
($m)
i
HY12
1 Jan 2012
($m)
i
HY13
30 Dec 2012
($m)
Change
HY13/HY12
Continuing Operations
Inventory
Trade Payables
Net Investment in Inventory
Receivables
Other Creditors
Working Capital
Fixed Assets and Investments
Intangibles
Total Funds Employed
Net Tax Balances
Net Assets Employed
Net Repayable Debt
Other Financial Liabilities ii
Net Assets – Continuing Operations
3,698.3
(4,013.4)
(315.1)
894.4
(2,954.7)
(2,375.4)
9,846.5
5,282.0
12,753.1
423.2
13,176.3
(4,316.1)
(433.9)
8,426.3
4,111.5
(4,739.8)
(628.3)
911.4
(2,667.9)
(2,384.8)
9,423.7
5,206.5
12,245.4
344.1
12,589.5
(4,130.2)
(365.9)
8,093.4
4,498.9
(5,363.0)
(864.1)
1,032.0
(3,090.3)
(2,922.4)
9,020.2
5,637.6
11,735.4
406.1
12,141.5
(2,874.7)
(663.5)
8,603.3
9.4%
13.1%
37.5%
13.2%
15.8%
22.5%
(4.3)%
8.3%
(4.2)%
18.0%
(3.6)%
(30.4)%
81.3%
6.3%
Assets Classified as Held for Sale
Liabilities Associated with Assets Classified
as Held for Sale
Net Assets – Discontinued Operations
220.9
(200.9)
442.3
-
n.c
20.0
(308.5)
133.8
-
n.c
n.c
Total Net Assets
8,446.3
8,227.2
8,603.3
4.6%
Non-controlling Interests
Shareholders’ Equity
Total Equity
258.1
8,188.2
8,446.3
262.3
7,964.9
8,227.2
269.8
8,333.5
8,603.3
2.9%
4.6%
4.6%
36.8
48.9
15.4%
38.8
53.2
15.5%
Discontinued Operations
Key Ratios – Continuing Operations
Closing Inventory Days (based on COGS)
Closing Creditor Days (based on sales)
Return on Average Funds Employed (ROFE) iii
i
In line with statutory reporting requirements for balance sheet items, the continuing operations balance sheet for HY12
includes Consumer Electronics India on the basis that this entity was not classified as a discontinued operation until HY13.
Discontinued operations balances at HY12 reflect Consumer Electronics Australia and New Zealand.
ii
Other financial Liabilities include the Lowe’s put option and the ALH gaming entitlement liability, resulting from the
recent changes to the Victorian Gaming Regulations.
iii
For comparability, ROFE for both HY13 and HY12 excludes Consumer Electronics Australia, New Zealand and India.
34
Group Cash Flow for the 27 weeks ended 30 December 2012
HY12
(27 weeks)
($m)
HY13
(27 weeks)
($m)
EBITDA – Total Group
Consumer Electronics provision / Net loss on disposal of
Consumer Electronics businesses
Net (increase) in inventory
Net increase in creditors
Net change in other working capital and non-cash
2,014.2
2,328.5
300.0
(776.8)
781.6
(3.5)
63.7
(890.6)
1,387.5
10.9
Cash from Operating Activities before Interest and Tax
2,315.5
2,900.0
Net interest paid (including costs of Woolworths Notes)
Tax paid
(187.7)
(455.7)
(190.4)
(507.8)
Total cash provided by Operating Activities
1,672.1
2,201.8
Payments for the purchase of businesses
Payments for property, plant and equipment – property
development
Payments for property, plant and equipment – other
Payments for the purchase of intangible assets
Proceeds from the sale of businesses and property, plant
and equipment
Proceeds from the sale of property to the SCA Property
Group
Advances/(repayments) related to property development,
payments for the purchase of investments and dividends
received
(128.8)
(201.6)
(650.6)
(609.1)
(3.4)
(387.1)
(522.3)
(41.0)
72.9
62.3
-
764.0
5.8
(17.9)
(1,313.2)
(343.6)
Lowe’s cash contributions (Home Improvement)
121.0
116.0
Free Cash Flow
479.9
1,974.2
Proceeds from share issues / other
117.2
175.1
(688.7)
(722.8)
(91.6)
1,426.5
Total cash used in Investing Activities
Dividends paid
Free Cash Flow after Equity Related Financing Activities
Change
15.6%
25.2%
31.7%
35
Appendix One
Five Year Store and Trading Area Analysis
Half Year Ended 30 December 2012
STORES (number)
NSW & ACT
QLD
VIC
SA & NT
WA
TAS
i
Supermarkets in Australia
ii
New Zealand Supermarkets
Total Supermarkets
Thomas Dux
Freestanding Liquor (incl. Dan Murphy’s)
iii
ALH Retail Liquor Outlets
Caltex/WOW Petrol
Woolworths Petrol – Australia
Woolworths Petrol/Convenience – New Zealand
Total Supermarket Division
2013
HALF
YEAR
267
206
218
79
87
30
887
165
1,052
11
338
524
131
475
2,531
2012
FULL
YEAR
262
203
214
78
85
30
872
161
1,033
11
329
507
132
467
2,479
2011
FULL
YEAR
255
194
203
76
83
29
840
156
996
11
305
488
132
449
2,381
2010
FULL
YEAR
248
189
200
74
83
29
823
152
975
11
281
480
132
429
22
2,330
2009
FULL
YEAR
241
186
192
72
82
29
802
149
951
3
256
463
133
409
22
2,237
BIG W
Dick Smith
Tandy
Total General Merchandise Division
Hotels (includes clubs)
Danks (Home Improvement Retail)
Masters
Total Continuing Operations
Discontinued Operations
Total Group
176
176
324
20
25
3,076
3,076
172
172
294
21
15
2,981
348
3,329
165
390
4
559
282
19
3,241
3,241
161
394
22
577
284
8
3,199
3,199
156
349
87
592
280
3,109
3,109
Wholesale customer stores
Dick Smith
Progressive
Croma (India CEG)
Danks (Home Improvement Wholesale)
Statewide Independent Wholesale
Total Wholesale customer stores
57
500
220
777
54
77
518
220
869
3
51
64
543
220
881
18
54
50
581
220
923
35
53
33
218
339
Trading Area (sqm)
Supermarkets Division – Australia
iv
Supermarkets Division – New Zealand
v
General Merchandise Division
2,374,752
364,648
1,005,679
2,318,756
351,744
1,107,732
2,202,620
333,274
1,086,082
2,127,195
325,256
1,061,934
2,037,680
303,889
1,038,561
Store Movements July 12 - December 12
New Stores – incremental
Closures – permanent
Net New Stores
i
Australian Supermarkets
17
(2)
15
ii
New Zealand Supermarkets
4
4
iii
The Dan Murphy’s store number has been revised from the HY13 Sales Results Announcement to reflect one additional store
Excludes Gull and franchise stores
v
Includes BIG W, Dick Smith and Tandy, excludes Woolworths India in the periods these businesses were owned by Woolworths
iv
36
Appendix Two
ASIC Regulatory Guide 230 Disclosing non-IFRS financial information
In December 2011 ASIC issued Regulatory Guide 230. To comply with this Guide, Woolworths is required
to make a clear statement about the non-IFRS information included in the Profit Report and Dividend
Announcement (‘Profit Announcement’) for the 27 weeks ended 30 December 2012.
In addition to statutory report amounts, the following non-IFRS measures are used by management and
the directors as the primary measures of assessing financial performance of the Group and individual
segments:
Non-IFRS measures used in describing the Business Performance include:
Total Group EBITDA, EBIT, NPAT and EPS before significant items
EBIT
Earnings before interest, tax, depreciation, amortisation and rent (EBITDAR)
Total Trading Result – Continuing Operations or trading EBIT, which represents business segment
EBIT before central overheads and the investment in Home Improvement
Fixed Charges Cover Ratio
Cost of doing business
Comparable sales
Non-IFRS measures used in describing Balance Sheet and Cash Flow Statement include:
Funds employed separated between continuing operations and discontinued operations
Funds employed excluding significant items
Cash flow from operating activities before interest and tax
Free cash flow
Free cash flow after equity related financing activities
Cash realisation ratio
The directors consider that these performance measures are appropriate for their purposes and present
meaningful information on the underlying drivers of the continuing business after announcing the exit
from the Consumer Electronics market segment and SCA Property Group transaction. Many of the
measures used are common practice in the industry within which Woolworths operates.
The Profit Announcement has not been audited in accordance with Australian Auditing Standards.
37
Appendix Two (continued)
The following table provides a reconciliation of EBIT and NPAT to the statutory Income Statement.
HY12
(27 weeks)
($m)
EBIT
Group EBIT – Continuing Operations before significant items1
Items not included in statutory EBIT:
One-off loss on SCA Property Group transaction (before tax)
Statutory EBIT – Continuing Operations
NPAT
Profit after income tax and non-controlling interests before significant
items1 – Continuing Operations
Items not included in statutory NPAT:
One-off loss on SCA Property Group transaction (after tax)
Statutory profit attributable to equity holders of the parent entity –
Continuing Operations
Profit after income tax and non-controlling interests before significant
items1 – Discontinued Operations
Items not included in statutory NPAT:
Consumer Electronics Provision / Net loss on disposal of Consumer
Electronics businesses
Statutory profit attributable to equity holders of the parent entity –
Discontinued Operations
Statutory profit attributable to equity holders of the parent entity
HY13
(27 weeks)
($m)
1,823.2
1,934.7
1,823.2
(32.8)
1,901.9
1,182.5
1,247.2
-
(28.5)
1,182.5
1,218.7
15.6
1.8
(231.2)
(65.7)
(215.6)
(63.9)
966.9
1,154.8
38
Endnotes
n.c – not comparable
1
Significant items include the following:
Continuing operations
In HY13, a one-off loss of $32.8 million before tax ($28.5m after tax) was incurred on the sale of assets to the
SCA Property Group. This is in line with the loss anticipated at the time the transaction was announced. The
loss primarily represents provisions for rental guarantees provided by Woolworths in relation to specialty
leasing risk. Woolworths will provide a rental guarantee for a period of two years over specialty tenancies
vacant as at the Implementation Date until they are first let for properties in the Completed Portfolio, and for a
period of two years from completion of development over all specialty tenancies for the properties in the
Development Portfolio until they are first let. Refer to the Woolworths Limited Explanatory Memorandum
dated 5 October 2012 for further detail.
The sale of New Zealand properties impacts the New Zealand Supermarkets result whereas the sale of
Australian properties is reflected in Central Overheads
Discontinued operations
The sale of the Dick Smith Electronics business to Anchorage Capital Partners was completed on 26 November
2012 and the sale of the Consumer Electronics business in India to Infiniti Retail Limited was completed on 15
October 2012. In relation to the sale of these businesses in HY13, a final write-off adjustment of $63.7 million
before tax ($65.7 million after tax) was recorded. The write off largely represents the seasonal inventory build
in the Australian and New Zealand businesses in the lead up to Christmas net of the profit on disposal of the
Indian Consumer Electronics business. Given the structure of the transactions, there are no material tax
benefits arising from the disposal of the Consumer Electronics businesses.
In HY12, a $300 million provision before tax ($231.2 million after tax) was raised in relation to the restructure
and divestment of the Dick Smith Electronics business.
As these businesses have been sold, no further losses are anticipated.
2
Represents the October 2012 and April 2013 dividends and the December 2012 in-specie distribution (dividend
and capital components).
3
HY12 and HY13 Consumer Electronics results are not for comparable periods given the divestment of the
Consumer Electronics businesses during HY13.
4
Growth for New Zealand Supermarkets is quoted in New Zealand Dollars.
5
Operating cash flow as a percentage of total group net profit after tax before depreciation and amortisation.
6
Group EBITDAR divided by rent and interest costs. Rent and interest costs include capitalised interest but exclude
foreign exchange gains / losses and dividend income.
7
The standard shelf price movement index is calculated by comparing the number of products sold in the current
year using the current year prices to the number of products sold in the current year using the prior year prices. The
price used for this comparison is the standard shelf price. Products on promotion are excluded from the calculation
(i.e. the volume of these items sold is removed from both years’ sales). The calculation removes the impact of any
changes in volumes and the distortion of promotional activity.
8
The Dan Murphy’s store number has been revised from the HY13 Sales Results Announcement to reflect one
additional store.
39
9
Excludes intercompany charges.
10
Given the structure of the transactions, there are no material tax benefits arising from the disposal of the
Consumer Electronics businesses.
11
In line with statutory reporting requirements for balance sheet items, the continuing operations balance sheet for
HY12 includes Consumer Electronics India on the basis that this entity was not classified as a discontinued operation
until HY13. Discontinued operations balances at HY12 reflect Consumer Electronics Australia and New Zealand.
12
For comparability, ROFE for both HY13 and HY12 excludes Consumer Electronics Australia, New Zealand and India.
13
The credit ratings referred to in this document have been issued by a credit rating agency which holds an
Australian Financial Services Licence with an authorisation to issue credit ratings to wholesale clients only. The
credit ratings in this document are published for the benefit of Woolworths Debt Providers.
40
2
Woolworths Limited
ABN 88 000 014 675
Half Year Financial Report for the Half Year
Ended 30 December 2012
This Half Year Financial Report is provided to the Australian Securities
Exchange (ASX) under ASX Listing Rule 4.2A.3 and should be read in
conjunction with the 2012 Annual Financial Report and any
announcements made to the market during the period.
Woolworths Limited
Half Year Financial Report
for the Half Year Ended 30 December 2012
Page Number
Appendix 4D Additional Information
1
Directors‟ Report
8
Auditor‟s Independence Declaration
10
Independent Auditor‟s Review Report
11
Directors‟ Declaration
13
Half Year Financial Report
Condensed Consolidated Income Statement
14
Condensed Consolidated Statement of Comprehensive Income
16
Condensed Consolidated Balance Sheet
18
Condensed Consolidated Statement of Changes in Equity
19
Condensed Consolidated Statement of Cash Flows
20
Notes to the Condensed Consolidated Financial Statements
22
Woolworths Limited
Appendix 4D Additional Information
For the Half Year Ended 30 December 2012
This Half Year Financial Report is provided to the Australian Securities Exchange
(ASX) under ASX Listing Rule 4.2A.3.
Current Reporting Period: Half Year ended 30 December 2012 (27 weeks)
Previous Corresponding Period: Half Year ended 1 January 2012 (27 weeks)
1
Woolworths Limited
Appendix 4D Additional Information
For the Half Year Ended 30 December 2012
Results For Announcement To The Market
For the Half Year Ended 30 December 2012
Revenue and Net Profit/(Loss)
Percentage
Change
%
Revenue from continuing operations
Amount
$m
up
4.8
to
30,233.4
down
39.8
to
641.9
Total Group revenue from ordinary activities
up
3.2
to
30,875.3
Profit from continuing operations after tax attributable
to members1
up
3.1
to
1,218.7
down
70.4
to
(63.9)
Profit from ordinary activities after tax attributable
to members3
up
19.4
to
1,154.8
Net profit attributable to members3
up
19.4
to
1,154.8
Revenue from discontinued operations
Loss from discontinued operations after tax
attributable to members2
1
A one-off loss of $28.5 million after tax was incurred in continuing operations as a result of the transaction to create the Shopping
Centres Australasia Property Group (SCA Property Group) – refer note 3 for further detail. Excluding the impact of this amount, profit
from continuing operations after tax attributable to members was $1,247.2 million, up 5.5%.
2
Includes the net loss on sale of the Consumer Electronics businesses in Australia, New Zealand and India of $65.7 million after tax.
Excluding the impact of this amount, net profit after tax from discontinued operations attributable to members was $1.8 million.
3
Excluding the impact of the one-off loss as a result of the transaction to create the SCA Property Group ($28.5 million after tax), the
net loss on sale of the Consumer Electronics businesses ($65.7 million after tax), as well as the impact of the Consumer Electronics
restructure provision and impairment loss raised in the prior year ($231.2 million after tax), net profit after tax attributable to members
was $1,249.0 million, up 4.2%.
Dividends (Distributions)
Amount per
security
Final dividend
Interim dividend
Record date for determining entitlement to the dividend
Franked
amount per
security
N/A
N/A
62 cents
62 cents
Interim Dividend: 22 March 2013
Brief Explanation of Revenue, Net Profit/(Loss) and Dividends (Distributions)
Refer to Press Release – First Half Profit Report and Dividend Announcement for the 27 weeks
ended 30 December 2012.
2
Woolworths Limited
Appendix 4D Additional Information
For the Half Year Ended 30 December 2012
I.
Details Relating to Dividends (Distributions)
Date
dividend
payable
Interim dividend
Amount per
security
cents
2013
26 April 2013
62
2012
27 April 2012
59
Interim dividend (distribution) per security
Current Period
cents
Ordinary securities
62
Previous
Corresponding
Period
cents
59
Interim dividend (distribution) on all securities
Current Period
$m
770.51
Ordinary securities
Previous
Corresponding
Period
$m
723.9
1
Represents the anticipated dividend value based on the shares on issue as at the date of this report. This value will
change if there are any shares issued between the date of this report and the ex-dividend date.
Other disclosures in relation to dividends (distributions)
The interim dividends in respect of ordinary securities for the Half Years ended 30
December 2012 and 1 January 2012 have not been recognised in this report
because they were not declared, determined or publicly recommended as at 30
December 2012 or 1 January 2012, respectively.
3
Woolworths Limited
Appendix 4D Additional Information
For the Half Year Ended 30 December 2012
I.
Details Relating to Dividends (Distributions) (continued)
Dividend Reinvestment Plans
The Dividend Reinvestment Plan shown below is in operation.
Dividend Reinvestment Plan (DRP)
Under the terms and conditions of the DRP, eligible shareholders may elect to
participate in the DRP in respect of all or part of their shareholding, subject to any
maximum and/or minimum number of shares to participate in the DRP that the
Directors may specify. There is currently no minimum number of shares which a
shareholder may designate as participating in the DRP. The maximum number of
shares which a shareholder (other than broker‟s nominees and certain trustees) may
designate as participating in the DRP is 20,000.
The last date for receipt of election notices for the DRP
II.
22 March 2013
Net Tangible Assets Per Security
Current
Period
cents per
share
Net tangible assets per security
Previous
Corresponding
Period
cents per
share
217.0
224.8
Brand names, liquor and gaming licences and
property development rights per security
190.6
166.4
Net tangible assets per security adjusted for
brand names, liquor and gaming licences and
property development rights
407.6
391.2
Add:
4
Woolworths Limited
Appendix 4D Additional Information
For the Half Year Ended 30 December 2012
III.
Details of Entities Over Which Control Has Been Gained or
Lost
Control gained over entities
Name of entity (or group of entities)
NOT APPLICABLE
Date control gained
NOT APPLICABLE
Current Period
$m
Contribution of the controlled entity (or group of entities) to profit/
(loss) after tax from ordinary activities during the period, from the
date of gaining control
-
For details of businesses acquired during the Half Year, refer to note 4.
Control lost over entities
Name of entity (or group of entities)
Woolworths Wholesale (India) Private Limited
Date control lost
15 October 2012
Name of entity (or group of entities)
DSE Holdings Pty Limited
Dick Smith Electronics Franchising Pty Ltd
Dick Smith Management Pty Ltd
Dick Smith Electronics Pty Limited
Dick Smith Electronics Staff Superannuation
Fund Pty Limited
Dick Smith (Wholesale) Pty Ltd
InterTAN Australia Pty Ltd
DSE (NZ) Limited
Date control lost
26 November 2012
For details of the contribution of the controlled entity (or group of entities) to
profit/(loss) after tax from ordinary activities during the current period up until the date
control was lost and the previous corresponding period, refer to note 10.
5
Woolworths Limited
Appendix 4D Additional Information
For the Half Year Ended 30 December 2012
III.
Details of Entities Over Which Control Has Been Gained or
Lost (continued)
Name of entity (or group of entities)
Shopping Centres Australasia Property Group
RE Limited
Shopping Centres Australasia Property
Holdings Pty Ltd
Shopping Centres Australasia Property
Operations Pty Ltd
Shopping Centres Australasia Property Group
Trustee NZ Limited
Date control lost
11 December 2012
Current Period
$m
Contribution of the controlled entity (or group of entities) to profit/
(loss) after tax from ordinary activities during the period, up until the
date control was lost
-
For further details on the transaction involving these entities, refer to note 3.
IV.
Details of Associates and Joint Venture Entities
Name of Entity
Ownership Interest
Previous
Current
Corresponding
Period
Period
%
%
Contribution to net profit
Previous
Current
Corresponding
Period
Period
$m
$m
Associates
Gage Roads Brewing
Co Limited
25%
GDL Rx No1 Limited
49%
25%
- ……
6
0.1
-
-
-
Woolworths Limited
Appendix 4D Additional Information
For the Half Year Ended 30 December 2012
V.
Information on Audit or Review
This half year report is based on accounts to which one of the following applies.

The accounts have been audited.

The accounts have been
subject to review.

The accounts are in the process of 
being audited or subject to review.
The accounts have not yet
been audited or reviewed.
Description of likely dispute or qualification if the accounts have not yet been audited
or subject to review or are in the process of being audited or subjected to review.
NOT APPLICABLE
Description of dispute or qualification if the accounts have been audited or subjected
to review.
NOT APPLICABLE
7
Woolworths Limited
Directors’ Report
The directors of Woolworths Limited submit herewith the half year financial report of Woolworths Limited and its
subsidiaries (the Group) for the half year ended 30 December 2012.
DIRECTORS
Set out below are the names of the Woolworths Limited Directors holding office at any time during the half
year ended 30 December 2012 and up to the date of this Report:
Non-Executive Directors
R G Waters
Chairman (appointed Chairman 22 November 2012)
J A Strong
Chairman (retired as Chairman and Director 22 November 2012)
J F Astbury
J R Broadbent
C Cross
R S Deane
C J Hrdlicka
I J Macfarlane
A D D Mackay
M J Ullmer
Executive Directors
G O‟Brien
T W Pockett
Managing Director and Chief Executive Officer
Finance Director
REVIEW AND RESULTS OF OPERATIONS
Refer to Press Release – First Half Profit Report and Dividend Announcement for the 27 weeks ended 30
December 2012.
8
Woolworths Limited
Directors’ Report (continued)
ROUNDING OF AMOUNTS
The Company is of the kind referred to in Australian Securities and Investments Commission Class Order
98/100, dated 10 July 1998, relating to the “rounding off” of amounts in the Directors‟ report and Financial
Report. In accordance with that Class Order, amounts in the Directors‟ report and half year financial report
have been rounded off to the nearest tenth of a million dollars, unless otherwise indicated.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor‟s independence declaration as required under s.307C of the Corporations Act 2001 is set out on
page 10.
This Report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306(3) of
the Corporations Act 2001 on 28 February 2013.
GRANT O’BRIEN
Managing Director and Chief Executive Officer
RALPH WATERS
Chairman
9
Woolworths Limited
Auditor’s Independence Declaration
10
Woolworths Limited
Independent Auditor’s Review Report
11
Woolworths Limited
Independent Auditor’s Review Report (continued)
12
Woolworths Limited
Directors’ Declaration
The Directors declare that:
(a) in the Directors‟ opinion, there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable; and
(b) in the Directors‟ opinion, the attached financial statements and notes thereto are in accordance with the
Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of
the financial position and performance of the consolidated entity.
Signed in accordance with a resolution of the directors made pursuant to s.303(5) of the Corporations Act
2001.
On behalf of the Directors
GRANT O’BRIEN
Managing Director and Chief Executive Officer
RALPH WATERS
Chairman
28 February 2013
13
Woolworths Limited
CONDENSED CONSOLIDATED INCOME STATEMENT
For the half year ended
Note
Consolidated
30-Dec-12
1-Jan-12
$m
$m
30,037.0
28,658.7
84.0
73.6
30,121.0
28,732.3
(22,025.6)
(21,185.2)
8,095.4
7,547.1
112.4
114.3
(4,863.9)
(4,496.8)
(1,442.0)
(1,341.4)
1,901.9
1,823.2
(164.1)
(171.3)
12.7
20.8
(151.4)
(150.5)
1,750.5
1,672.7
(526.6)
(482.1)
1,223.9
1,190.6
(63.9)
(215.6)
1,160.0
975.0
1,154.8
966.9
5.2
8.1
1,160.0
975.0
1,218.7
1,182.5
(63.9)
(215.6)
1,154.8
966.9
Continuing Operations
Revenue from the sale of goods
Other operating revenue
Total revenue
Cost of sales
Gross profit from continuing operations
Other revenue
Branch expenses
Administration expenses
Earnings from continuing operations before interest and tax
1
Financial expense
Financial income
Net financing costs
Net profit from continuing operations before income tax
expense
Income tax expense relating to continuing operations
Profit from continuing operations after income tax expense
1
Discontinued Operations
Loss from discontinued operations
10
Profit for the period
Net profit attributable to:
Equity holders of the parent entity
Non-controlling interests
Profit for the period
Profit attributable to equity holders of the parent entity
relates to:
Profit from continuing operations
1
Loss from discontinued operations
Profit attributable to equity holders of the parent entity
1
A one-off loss of $32.8 million before tax ($28.5 million after tax) was incurred in continuing operations as a result of the transaction to
create the Shopping Centres Australasia Property Group (SCA Property Group) – refer note 3 for further detail. Excluding the impact of
this amount for the half year ended 30 December 2012:
-
Earnings from continuing operations before interest and tax was $1,934.7 million;
-
Profit from continuing operations after income tax expense was $1,252.4 million; and
-
Profit attributable to equity holders of the parent entity relating to continuing operations was $1,247.2 million.
14
Woolworths Limited
CONDENSED CONSOLIDATED INCOME STATEMENT (continued)
For the half year ended
Consolidated
30-Dec-12
1-Jan-12
Basic EPS (cents per share)
93.6
79.4
Diluted EPS (cents per share)
93.3
79.1
1,233.3
1,217.8
Basic EPS (cents per share)
98.8
97.1
Diluted EPS (cents per share)
98.5
96.7
1,233.3
1,217.8
Earnings Per Share (EPS) from continuing and discontinued
operations
Weighted average number of shares used in the calculation of
Basic EPS (million)
Earnings Per Share (EPS) from continuing operations
Weighted average number of shares used in the calculation of
Basic EPS (million)
The condensed consolidated income statement should be read in conjunction with the accompanying notes to the condensed
consolidated financial statements.
15
Woolworths Limited
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the half year ended
Consolidated
30-Dec-12
1-Jan-12
$m
$m
1,223.9
1,190.6
(63.9)
(215.6)
1,160.0
975.0
Movement in translation of foreign operations taken to equity
17.7
(37.0)
Movement in the fair value of investments in equity securities
13.5
(9.0)
(118.8)
119.3
103.6
(132.6)
2.3
9.7
18.3
(49.6)
Movement in translation of foreign operations taken to equity
0.3
(1.4)
Movement in the fair value of cash flow hedges
0.4
(0.1)
Tax effect of items recognised directly to equity
(0.1)
-
0.6
(1.5)
1,242.2
1,141.0
(63.3)
(217.1)
1,178.9
923.9
1,237.0
1,132.9
5.2
8.1
1,242.2
1,141.0
(63.3)
(217.1)
(63.3)
(217.1)
Net profit from continuing operations
Net loss from discontinued operations
Profit for the period
Other comprehensive income/(loss) from continuing
operations
Movement in the fair value of cash flow hedges
Transfer cash flow hedges to the income statement
Tax effect of items recognised directly to equity
Other comprehensive income/(loss) for the period (net of tax)
from continuing operations
Other comprehensive income/(loss) from discontinued
operations
Other comprehensive income/(loss) for the period (net of tax)
from discontinued operations
Total comprehensive income from continuing operations
Total comprehensive loss from discontinued operations
Total comprehensive income for the period
Total comprehensive income from continuing operations
attributable to:
Equity holders of the parent
Non-controlling interests
Total comprehensive loss from discontinued operations
attributable to:
Equity holders of the parent
16
Woolworths Limited
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (continued)
Income tax on other comprehensive income
Before tax
Tax (expense)/
Net of
benefit
tax
$m
$m
$m
17.7
(2.2)
15.5
13.5
-
13.5
(118.8)
35.6
(83.2)
103.6
(31.1)
72.5
16.0
2.3
18.3
Before tax
Tax (expense)/
Net of
benefit
tax
$m
$m
$m
(37.0)
5.5
(31.5)
(9.0)
-
(9.0)
119.3
(35.7)
83.6
(132.6)
39.9
(92.7)
(59.3)
9.7
(49.6)
Before tax
Tax (expense)/
Net of
benefit
tax
$m
$m
$m
equity
0.3
-
0.3
Movement in the fair value of cash flow hedges
0.4
(0.1)
0.3
0.7
(0.1)
0.6
Before tax
Tax (expense)/
Net of
benefit
tax
$m
$m
$m
equity
(1.4)
-
(1.4)
Movement in the fair value of cash flow hedges
(0.1)
-
(0.1)
(1.5)
-
(1.5)
From continuing operations
For the half year ended 30 Dec 2012
Movement in translation of foreign operations taken to
equity
Movement in the fair value of investments in equity
securities
Movement in the fair value of cash flow hedges
Transfer cash flow hedges to the income statement
For the half year ended 1 Jan 2012
Movement in translation of foreign operations taken to
equity
Movement in the fair value of investments in equity
securities
Movement in the fair value of cash flow hedges
Transfer cash flow hedges to the income statement
From discontinued operations
For the half year ended 30 Dec 2012
Movement in translation of foreign operations taken to
For the half year ended 1 Jan 2012
Movement in translation of foreign operations taken to
The condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying notes to the
condensed consolidated financial statements.
17
Woolworths Limited
CONDENSED CONSOLIDATED BALANCE SHEET
Note
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Assets classified as held for sale
Total current assets
Non-current assets
Trade and other receivables
Other financial assets
Property, plant and equipment
Intangible assets
Deferred tax assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Borrowings
Current tax liabilities
Other financial liabilities
Provisions
10
Liabilities directly associated with assets classified as
held for sale
Total current liabilities
Non-current liabilities
Borrowings
Other financial liabilities
Provisions
Other
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Shares held in trust
Reserves
Retained profits
Amounts recognised directly in equity relating to
assets classified as held for sale
Equity attributable to the members of Woolworths
Limited
Non-controlling interests
Total equity
10
10
30-Dec-12
$m
Consolidated
24-Jun-12
$m
2,274.9
1,014.8
4,498.9
39.8
7,828.4
182.2
8,010.6
833.4
869.9
3,698.3
23.8
5,425.4
376.7
5,802.1
17.2
208.1
8,722.1
5,637.6
649.8
15,234.8
23,245.4
24.5
238.8
9,589.0
5,282.0
644.7
15,779.0
21,581.1
24.5
106.8
9,281.7
5,206.5
584.8
15,204.3
21,743.2
6,680.6
37.5
243.7
165.6
965.9
8,093.3
5,242.2
54.4
221.5
107.4
939.8
6,565.3
5,853.4
521.4
240.7
69.6
867.9
7,553.0
8,093.3
200.9
6,766.2
308.5
7,861.5
4,592.7
1,149.3
542.4
264.4
6,548.8
14,642.1
8,603.3
4,695.3
887.2
527.3
258.8
6,368.6
13,134.8
8,446.3
4,159.1
809.0
485.9
200.5
5,654.5
13,516.0
8,227.2
4,283.3
(59.1)
(206.3)
4,315.6
8,333.5
4,336.6
(60.7)
(243.9)
4,163.4
8,195.4
4,212.6
(39.6)
(272.2)
4,072.4
7,973.2
-
(7.2)
(8.3)
8,333.5
269.8
8,603.3
8,188.2
258.1
8,446.3
7,964.9
262.3
8,227.2
1-Jan-12
$m
922.7
886.9
4,111.5
140.3
6,061.4
477.5
6,538.9
The condensed consolidated balance sheet should be read in conjunction with the accompanying notes to the condensed consolidated
financial statements.
18
Woolworths Limited
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the half year ended 30 December 2012
Balance at 25 June 2012
Issued
Capital
Shares
Held In
Trust
Hedging
Reserve
$m
$m
$m
Foreign Remuneration
Asset Equity Instrument Retained
Equity
Currency
Reserve Revaluation
Reserve Earnings Attributable
Translation
Reserve
to Members
Reserve
of
Woolworths
Limited
$m
$m
$m
$m
$m
$m
Non
Controlling
Interests
Total
Equity
$m
$m
4,336.6
(60.7)
(52.8)
(349.0)
246.2
16.4
(111.9)
4,163.4
8,188.2
258.1
8,446.3
Profit after income tax expense
Other comprehensive income for the period (net of tax)
-
-
(10.4)
15.8
-
-
13.5
1,154.8
-
1,154.8
18.9
5.2
-
1,160.0
18.9
Total comprehensive income for the period (net of tax)
-
-
(10.4)
15.8
-
-
13.5
1,154.8
1,173.7
5.2
1,178.9
181.5
104.2
(338.6)
(0.4)
4,283.3
1.1
0.5
(59.1)
(0.2)
(63.4)
8.7
(324.5)
17.9
(0.5)
263.6
16.4
(98.4)
(826.9)
(176.1)
0.4
4,315.6
(826.9)
181.5
104.2
1.1
17.9
8.5
(514.7)
8,333.5
(7.0)
116.0
(102.5)
269.8
(833.9)
181.5
104.2
1.1
116.0
17.9
8.5
(102.5)
(514.7)
8,603.3
Issued
Capital
Shares
Held In
Trust
Hedging
Reserve
Non
Controlling
Interests
Total
Equity
$m
$m
$m
Foreign Remuneration
Asset Equity Instrument Retained
Equity
Currency
Reserve Revaluation
Reserve Earnings Attributable
Translation
Reserve
to Members
Reserve
of
Woolworths
Limited
$m
$m
$m
$m
$m
$m
$m
$m
3,988.6
(56.1)
3.2
(381.2)
220.4
16.4
(95.6)
3,897.5
7,593.2
252.6
7,845.8
Profit after income tax expense
Other comprehensive income for the period (net of tax)
-
-
(9.2)
(32.9)
-
-
(9.0)
966.9
-
966.9
(51.1)
8.1
-
975.0
(51.1)
Total comprehensive income for the period (net of tax)
-
-
(9.2)
(32.9)
-
-
(9.0)
966.9
915.8
8.1
923.9
120.9
104.1
(1.0)
4,212.6
2.7
13.8
(39.6)
(6.0)
(414.1)
21.2
(13.8)
227.8
16.4
(104.6)
(792.9)
0.9
4,072.4
(792.9)
120.9
104.1
2.7
21.2
(0.1)
7,964.9
(5.4)
28.0
(21.0)
262.3
(798.3)
120.9
104.1
2.7
28.0
21.2
(21.0)
(0.1)
8,227.2
Dividends paid
Issue of shares as a result of options exercised under executive share option plans
Issue of shares as a result of the dividend reinvestment plan
Issue of shares under the employee share plan
Issue of shares to non-controlling interests
Compensation on share based payments
Sale of businesses
Reclassification of non-controlling interests for recognition of financial liability
In-specie distribution to Woolworths Limited shareholders
Shares issued /(acquired) by the Woolworths Employee Share Trust
Other
Balance at 30 December 2012
For the half year ended 1 January 2012
Balance at 27 June 2011
Dividends paid
Issue of shares as a result of options exercised under executive share option plans
Issue of shares as a result of the dividend reinvestment plan
Issue of shares under the employee share plan
Issue of shares to non-controlling interests
Compensation on share based payments
Reclassification of non-controlling interests for recognition of financial liability
Shares issued /(acquired) by the Woolworths Employee Share Trust
Other
Balance at 1 January 2012
The condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes to the condensed consolidated financial statements.
19
Woolworths Limited
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the half year ended
30-Dec-12
1-Jan-12
$m
$m
33,008.1
32,088.0
28.9
23.6
(30,137.0)
(29,796.1)
(198.9)
(205.5)
8.5
17.8
Income tax paid
(507.8)
(455.7)
Net cash provided by operating activities
2,201.8
1,672.1
62.3
72.9
Proceeds from the sale of property to the SCA Property Group
764.0
-
(Repayments)/advances of property related receivables
(20.8)
3.2
(387.1)
(650.6)
(522.3)
(609.1)
-
(0.6)
(41.0)
(3.4)
2.9
3.2
(201.6)
(128.8)
(343.6)
(1,313.2)
182.1
122.6
116.0
121.0
Proceeds from external borrowings
4,945.3
6,327.3
Repayment of external borrowings
(4,943.8)
(6,817.2)
(722.8)
(688.7)
(7.0)
(5.4)
Net cash used in financing activities
(430.2)
(940.4)
Net Increase/(Decrease) In Cash Held
1,428.0
(581.5)
1.7
(0.4)
845.2
1,519.6
2,274.9
937.7
Note
Cash Flows From Operating Activities
Receipts from customers
Receipts from vendors and tenants
Payments to suppliers and employees
Interest and costs of finance paid
Interest received
Cash Flows From Investing Activities
Proceeds from the sale of property, plant and equipment and
subsidiaries
Payments for property, plant and equipment – property development
Payments for property, plant and equipment (excluding property
development)
Payments for the purchase of investments
Payments for the purchase of intangible assets
Dividends received
Payments for the purchase of businesses
4
Net cash used in investing activities
Cash Flows From Financing Activities
Proceeds from the issue of equity securities
Proceeds from the issue of equity securities in subsidiary to noncontrolling interest
Dividends paid
Dividends paid to non-controlling interests
Effect of exchange rate changes on foreign currency held
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the financial period
20
Woolworths Limited
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (continued)
For the half year ended
30-Dec-12
1-Jan-12
$m
$m
2,274.9
922.7
Bank overdraft - continuing operations
-
(1.3)
Cash at bank and on hand - discontinued operations
-
16.3
2,274.9
937.7
Reconciliation of cash and cash equivalents
Reconciliation of cash and cash equivalents at the end of the
financial period (as shown in the condensed consolidated statement
of cash flows) to the related items in the condensed consolidated
balance sheet is as follows:
Cash at bank and on hand - continuing operations
Cash and cash equivalents at the end of the financial period
The condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes to the condensed
consolidated financial statements.
21
Woolworths Limited
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1 Significant accounting policies
Woolworths Limited (the “Company”) is a company domiciled in Australia. The consolidated financial report
of the Company for the 27 weeks ended 30 December 2012 comprises the Company and its subsidiaries
(together referred to as the “Consolidated Entity” or “Group”).
Statement of compliance
The half year financial report for the 27 weeks ended 30 December 2012 (“Half Year Financial Report”) is a
general purpose financial report which has been prepared in accordance with Australian Accounting
Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. Compliance with AASB 134
ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. The
condensed consolidated half year financial report does not include all of the information required for a full
annual financial report, and should be read in conjunction with the annual financial report of the Consolidated
Entity as at and for the 52 weeks ended 24 June 2012 and any public announcements by Woolworths
Limited and its subsidiaries during the half year in accordance with continuous disclosure obligations under
the Corporations Act 2001.
The Half Year Financial Report was approved by the Board of Directors on 28 February 2013.
Basis of preparation
The half year financial report has been prepared on the basis of historical cost, except for available for sale
financial assets, derivative financial instruments, financial assets valued through other comprehensive
income and other financial liabilities that are measured at re-valued amounts or fair values.
All amounts are presented in Australian Dollars, unless otherwise noted.
The Company is of a kind referred to in ASIC Class Order 98/100, dated 10 July 1998, and in accordance
with the Class Order, amounts in the financial report have been rounded off to the nearest tenth of a million
dollars, unless otherwise stated.
The accounting policies and methods of computation adopted in the preparation of the half year financial
report are consistent with those adopted in the Company‟s annual financial report for the 52 weeks ended 24
June 2012. These accounting policies are consistent with Accounting Standards and with International
Financial Reporting Standards.
Certain comparative amounts have been reclassified to conform with the current year‟s presentation to better
reflect the economic nature of the assets and liabilities of the group.
The following amendments to Australian Accounting Standards have been adopted during the period but do
not have a material impact on the group:
AASB 1054 „Australian Additional Disclosures‟ and AASB 2011-1 „Amendments to Australian
Accounting Standards arising from the Trans-Tasman Convergence Project‟; and
AASB 2010-8 „Amendments to Australian Accounting Standards – Deferred Tax: Recovery of
Underlying Assets‟.
22
Woolworths Limited
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
2 Segment Information
The Group has five reportable segments related to continuing operations. The reportable segments were
identified on the basis of internal reports on the components of the Group that are regularly reviewed by the
Chief Operating Decision Maker in order to allocate resources to the segment and assess its performance.
These business units offer different products and services and are managed separately because they require
different technology and marketing strategies. The Group‟s reportable segments are as follows:
–
–
–
–
–
Australian Food and Liquor – procurement of food and liquor and products for resale to customers
in Australia
New Zealand Supermarkets – procurement of food and liquor and products for resale to customers
in New Zealand
Petrol – procurement of petroleum products for resale to customers in Australia
BIG W – procurement of discount general merchandise products for resale to customers in Australia
Hotels – provision of leisure and hospitality services including food and alcohol, accommodation,
entertainment and gaming
The Unallocated group consists of the Group‟s other operating segments that are not separately reportable
(including Home Improvement) as well as various support functions including Property and Head office costs.
Discontinued operations represents the Consumer Electronics segment, which is the procurement of
electronic products for resale to customers in Australia and New Zealand and a wholesale business in India.
23
Woolworths Limited
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
2 Segment Information
Australian Food &
Liquor (1)
2013
$A m
2012
$A m
New Zealand
Supermarkets
Petrol
Hotels (2)
BIG W
2013
$A m
2012
$A m
2013
$A m
2012
$A m
2013
$A m
2012
$A m
2,312.7
3.9
2,316.6
2,244.0
3.5
2,247.5
3,393.2
3,393.2
3,434.0
3,434.0
2,447.0
2,447.0
2,361.9
2,361.9
2013
$A m
Unallocated
2012
$A m
2013
$A m
(3)
2012
$A m
Discontinued
Operations (4)
Total Continuing
Operations
2013
$A m
2012
$A m
2013
$A m
Consolidated
2012
$A m
2013
$A m
2012
$A m
Segment disclosures
Business segments
Sales to customers
Other operating revenue
Inter-segment revenue
Segment revenue
Eliminations
Unallocated revenue
20,487.6
76.4
20,564.0
19,570.6
70.1
19,640.7
759.4
759.4
635.8
635.8
(5)
Total revenue
Segment earnings before interest and tax
637.1
3.7
349.4
990.2
(349.4)
412.4
265.8
678.2
(265.8)
30,037.0
84.0
349.4
30,470.4
(349.4)
28,658.7
73.6
265.8
28,998.1
(265.8)
641.6
0.2
641.8
(0.2)
1,066.4
0.2
1,066.6
(0.2)
30,678.6
84.0
349.6
31,112.2
(349.6)
29,725.1
73.6
266.0
30,064.7
(266.0)
112.4
114.3
112.4
114.3
0.3
0.4
112.7
114.7
20,564.0
19,640.7
2,316.6
2,247.5
3,393.2
3,434.0
2,447.0
2,361.9
759.4
635.8
753.2
526.7
30,233.4
28,846.6
641.9
1,066.8
30,875.3
29,913.4
1,583.9
1,493.5
124.7
118.5
71.0
67.4
129.5
119.6
140.8
116.2
(115.2)
(92.0)
1,934.7
1,823.2
2.5
22.2
1,937.2
1,845.4
Loss on SCA Property Group transaction
(32.8)
-
-
Loss on sale of subsidiaries
-
-
Loss on remeasurement to fair value less costs to sell
-
-
Earnings before interest and tax
1,901.9
Net financing cost
(151.4)
1,823.2
(32.8)
(63.7)
-
(63.7)
-
-
(300.0)
-
(300.0)
(61.2)
(277.8)
1,840.7
1,545.4
(0.5)
(0.8)
1,750.5
1,672.7
(61.7)
(278.6)
1,688.8
Income tax expense
Profit after income tax expense
(526.6)
1,223.9
(482.1)
1,190.6
(2.2)
(63.9)
63.0
(215.6)
(528.8)
1,160.0
(419.1)
975.0
12.2
487.8
468.8
19.3
1,285.2
1,384.4
Capital expenditure
(6)
272.7
274.9
43.7
43.2
16.7
16.9
46.9
42.0
47.0
33.6
60.8
46.0
487.8
456.6
251.0
349.7
60.0
96.2
19.4
23.1
29.3
48.3
447.7
124.8
475.2
723.0
1,282.6
1,365.1
(1) Australian Food & Liquor is comprised of supermarket and liquor stores and wholesale food and liquor in Australia.
(2) Hotels is comprised of on-premise liquor sales, food, accommodation, gaming and venue hire.
(3) Unallocated is comprised of corporate head office, the property division and the Home Improvement division.
(4) Discontinued operations is comprised of Consumer Electronics Australia and New Zealand and India.
(5) Unallocated revenue is comprised of rent and other revenue from operating activities across the group.
(6) Capital expenditure is comprised of property, plant and equipment and intangible asset additions.
24
-
2.6
(151.9)
-
Profit before income tax expense
Segment depreciation and amortisation
(150.5)
-
(151.3)
1,394.1
Woolworths Limited
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3 Significant Transactions
Victorian Gaming Arrangements
In August 2012, new arrangements for gaming machine licences introduced by the Victorian Government
came into effect. Under these arrangements, venue operators are allowed to acquire and operate their own
gaming machines in approved venues. The gaming machine entitlements ($172.1 million) are reflected as an
intangible asset by ALH, with a corresponding liability representing the present value of future payments to
the Victorian Government in respect of the licences. These payments will be made quarterly over a period of
four years. The intangible asset will be amortised on a straight line basis over the life of the entitlements (10
years).
Creation of SCA Property Group and In-specie Distribution to Woolworths Limited Shareholders
In October 2012, Woolworths Limited announced a proposal to create the Shopping Centres Australasia
Property Group (SCA Property Group), a newly established ASX listed Real Estate Investment Trust (REIT)
through an in-specie distribution of stapled units in the SCA Property Group to all Woolworths Limited
shareholders. This proposal was voted in favour of at the Woolworths Limited Annual General Meeting on
22 November 2012 and the transaction was implemented on 11 December 2012. Woolworths transferred its
ownership of 65 properties to the SCA Property Group in December 2012, reducing the property, plant and
equipment held by the Woolworths Group by $1.3 billion.
A one-off loss of $28.5 million after tax was incurred as a result of this transaction, relating largely to
provisions for rental guarantees provided by Woolworths in relation to specialty leasing risk. Cash
consideration of $764.0 million was received from the SCA Property Group in respect of the sale of the
properties. An additional four New Zealand properties will be sold to the SCA Property Group in the second
half of FY13, at the time their development is complete.
Divestment of Consumer Electronics Businesses
In October 2012, Woolworths completed the sale of 100% of its shares in Woolworths Wholesale (India)
Private Limited to Infiniti Retail Limited and in November 2012 completed the sale of the Dick Smith
Electronics Australia and New Zealand businesses to Anchorage Capital Partners. Refer to note 10 for
further details.
4 Business Acquisitions
In July 2012, ALH Group Pty Ltd (ALH), a 75% owned subsidiary of Woolworths Limited, commenced the
staged acquisition of businesses from the Laundy Hotel Group, Waugh Hotel Group, DeAngelis Hotel Group
and Bayfield Hotel Group (Laundy acquisition). During the half year, 29 hotels and one bottleshop have been
acquired for consideration of $186.4 million. The acquisition of a further two hotels, which form part of this
transaction remain subject to Australian Competition and Consumer Commission (ACCC) approval.
Over the course of the half year, Woolworths Limited also acquired various other hotel venues and other
businesses. Each acquisition was for 100% of the respective enterprise.
Total net consideration was $201.6 million (inclusive of the Laundy acquisition). Net assets acquired
comprised mainly liquor and gaming licences $148.0 million, property, plant and equipment $20.0 million and
other working capital balances of $0.3 million, with goodwill on acquisition of $33.3 million. Goodwill has
arisen on acquisition of these businesses primarily because of their capacity to generate recurring revenue
streams.
On 25 January 2013, Woolworths completed the acquisition of the business and certain assets of Austral
Refrigeration in Australia and 100% of the issued shares of Austral Refrigeration (Suzhou) Co. Ltd (a
company incorporated in the Peoples Republic of China) from the receivers and managers of certain
subsidiaries of Hastie Group Limited (administrators appointed) (receivers and managers appointed).
25
Woolworths Limited
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
5 Dividends Paid
30-Dec-12
24-Jun-12
1-Jan-12
$m
$m
$m
826.9
-
792.9
-
723.9
-
27 weeks ended
Final dividend in respect of 2012 year of
67 cents (2011: 65 cents) per fully paid
ordinary share 100% franked at 30% tax
rate (2011: 100%)
Interim dividend in respect of 2012 year of
59 cents (2011: 57 cents) per fully paid
ordinary share 100% franked at 30% tax
rate (2011: 100%)
On 27 February 2013, the board of directors declared a 2013 interim dividend of 62 cents (2012: 59 cents)
per share. This will be paid on 26 April 2013 will be approximately $770.5 million (2012: $723.9 million). No
provision for the dividend has been made in the half year Financial Report in line with the requirements of
AASB 137 Provisions, Contingent Liabilities and Contingent Assets.
6 Contingent Liabilities
Contingent liabilities at 30 December 2012 were as follows:
Bank guarantees
1
Workers compensation self-insurance guarantees
2
Outstanding letters of credit issued to suppliers
Other
30-Dec-12
1-Jan-12
$m
$m
46.1
71.7
765.6
615.4
27.4
14.3
6.5
6.5
845.6
707.9
1
This item largely comprises guarantees relating to conditions set out in development applications and for the
sale of properties in the normal course of business.
2
State Work Cover authorities require guarantees against worker‟s compensation self-insurance liabilities.
The guarantee is based on independent actuarial advice of the outstanding liability.
No provision has been made in the half year Financial Report in respect of these contingencies, however
there is a provision of $561.8 million (1 January 2012: $501.6 million) for self-insured risks, which includes
liabilities relating to workers‟ compensation claims, that has been recognised in the balance sheet at balance
date.
26
Woolworths Limited
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
7 Goodwill
The intangibles balance in the condensed consolidated balance sheet includes the following movements in
goodwill for the half years:
For the half year ended 30 December 2012
30-Dec-12
1-Jan-12
$m
$m
3,221.8
3,227.7
33.3
38.1
Disposals and transfers
(0.5)
(2.3)
Effect of movements in foreign exchange rates
14.3
(27.8)
-
(70.6)
3,268.9
3,165.1
Carrying amount at start of period
Additions arising from the acquisition of businesses
Impairment
1
2
Carrying amount at end of period
1
Refer to note 4.
2
Relates to the impairment of goodwill in the Consumer Electronics business. Refer to note 10 for further detail.
27
Woolworths Limited
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
8 Issued Capital
For the half year ended 30 December 2012
30-Dec-12
1-Jan-12
$m
$m
4,336.6
3,988.6
Issue of shares as a result of options exercised under executive long
term incentive plans
181.5
120.9
Issue of shares as a result of the Dividend Reinvestment Plan
104.2
104.1
(0.4)
(1.0)
In-specie distribution to Woolworths Limited shareholders associated with
1
creation of the SCA Property Group
(338.6)
-
Balance at end of period
4,283.3
4,212.6
Issued and paid up share capital
1,242,618,001 fully paid ordinary shares
(1 January 2012: 1,226,894,810)
Fully paid ordinary shares carry one vote per share and the right to
dividends
Reconciliation of fully paid share capital
Balance at beginning of period
Adjustment to reflect the final proceeds for shares issued under the
Employee Share Plan
Reconciliation of fully paid share capital
No. of shares No. of shares
m
m
Balance at beginning of period
1,231.9
1,216.5
Issue of shares as a result of options exercised under executive long
term incentive plans
7.1
6.2
Issue of shares as a result of the Dividend Reinvestment Plan
3.6
4.2
1,242.6
1,226.9
$m
$m
(60.7)
(56.1)
Issue of shares under the Employee Share Plan
1.1
2.7
Other shares issued by the Woolworths Employee Share Trust
0.5
13.8
(59.1)
(39.6)
Balance at end of period
Shares held in trust
Reconciliation of shares held in trust
Balance at beginning of period
Balance at end of period
Reconciliation of shares held in trust
No. of shares No. of shares
m
m
Balance at beginning of period
Issue of shares under the Employee Share Plan
Other shares issued by the Woolworths Employee Share Trust
Balance at end of period
1
2.8
3.3
(0.1)
(0.2)
-
(0.5)
2.7
2.6
Includes capital component of the in-specie distribution as well as costs (stamp duty, advisory and other) associated with the
transaction.
28
Woolworths Limited
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
9 Subsequent Events
There have been no events subsequent to the balance date, which would have a material impact on the
group‟s financial statements at 30 December 2012.
10 Assets Held for Sale and Discontinued Operations
In January 2012, Woolworths Limited announced its intention to restructure its Consumer Electronics
Australia and New Zealand business, with a view to divesting this business. Subsequent to this, as part of
the broader Woolworths Group strategy, it was determined that Woolworths would exit the Consumer
Electronics market segment and thus its Consumer Electronics wholesale business in India would be
divested.
On 27 September 2012, the Group announced the sale of its wholesale operations in India to Infiniti Retail
Limited (Infiniti) and the sale of Dick Smith Australia and New Zealand to Anchorage Capital Partners
(Anchorage).
The sale of the shares in Woolworths Wholesale (India) Private Limited to Infiniti took effect from 15 October
2012 and the sale of Dick Smith Holdings Pty Limited and its subsidiaries to Anchorage took effect from 26
November 2012.
The half year results and cash flows from the discontinued operations (the Consumer Electronics
businesses in Australia, New Zealand and India) are as follows:
30-Dec-12
1-Jan-12
$m
$m
641.6
1,066.4
Other revenue
0.3
0.4
Total revenue
641.9
1,066.8
(639.9)
(1,045.4)
2.0
21.4
(0.2)
(5.8)
1.8
15.6
-
(300.0)
-
68.8
1.8
(215.6)
(63.7)
-
(2.0)
-
Loss on sale of the subsidiaries after income tax
(65.7)
-
Loss from discontinued operations
(63.9)
(215.6)
(113.7)
28.5
Net cash outflows from investing activities
(2.5)
(19.3)
Net cash inflows from financing activities
10.3
1.5
(105.9)
10.7
Profit/Loss from Discontinued Operations
Revenue
Expenses
Profit before income tax
Attributable income tax expense
Profit after tax before loss on re-measurement
Loss on re-measurement to fair value less costs to sell
1
Attributable income tax expense
Profit/(Loss) for the period from discontinued operations
Loss on sale of the subsidiaries before income tax
Attributable income tax expense
Cash Flows from Discontinued Operations
Net cash (outflow)/inflow from operating activities
Net cash (outflow)/inflow
1
Loss on re-measurement to fair value less costs to sell represents an impairment loss and restructuring provisions related to goodwill,
inventory, property, plant and equipment and certain lease exit costs for the Dick Smith business.
.
29
Woolworths Limited
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
10 Assets Held for Sale and Discontinued Operations (continued)
Details of the sale of the subsidiaries are as follows:
30-Dec-12
$m
Consideration received or receivable:
Cash
Proceeds receivable
49.4
1
26.9
Total disposal consideration
76.3
Carrying amount of net assets sold
131.5
Reserves transferred to profit and loss
8.5
Loss on sale before income tax
(63.7)
Attributable income tax expense
(2.0)
Loss on sale after income tax
(65.7)
1
Of the amounts receivable, $11.9 million was received in February 2013 and the remaining $15.0 million is due in June 2013
The combined carrying amounts of assets and liabilities as at the date of sale were as follows:
30-Dec-12
$m
Cash and cash equivalents
20.5
Trade and other receivables
34.2
Inventories
245.9
Property, plant and equipment
50.9
Deferred tax asset
4.5
Total assets
356.0
Trade and other payables
(184.7)
Interest bearing liabilities
(20.7)
Provisions
(13.3)
Other liabilities
(5.8)
Total liabilities
(224.5)
Net assets
131.5
Reserves transferred to profit and loss on sale of businesses
30
8.5
Woolworths Limited
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
10 Assets Held for Sale and Discontinued Operations (continued)
The major classes of assets and liabilities at the end of the reporting period (reported as a disposal group)
together with other assets held for sale are as follows:
30-Dec-12
1
1-Jan-12
$m
$m
Cash
-
16.3
Trade and other receivables
-
26.1
Inventories
-
312.6
Property, plant and equipment
-
78.8
Deferred tax assets
-
8.5
Total disposal group held for sale (discontinued operations)
-
442.3
182.2
35.2
equipment
182.2
35.2
Total assets classified as held for sale
182.2
477.5
Trade and other payables
-
207.1
Current tax liabilities
-
0.1
Provisions
-
95.8
Other liabilities
-
5.5
-
308.5
-
(8.3)
Assets classified as held for sale
Disposal group held for sale (discontinued operation)
Other assets held for sale – property, plant and equipment
Property, plant and equipment
Total other assets held for sale – property, plant and
Liabilities directly associated with assets classified as held
for sale
Disposal group held for sale (discontinued operation)
Total liabilities directly associated with assets classified as
held for sale
Total amounts recognised directly in equity associated with
assets classified as held for sale
1
Disposal group assets and liabilities held for sale at 1 January 2012 represent the Dick Smith Australian and New Zealand
businesses.
31