0
James Strong
Chairman
1
2
Earnings Per Share – up 19.7%
108.8
110
+19.7%
100
90.9
90
79.2
Cents
80
+14.8%
+13.0%
70.1
70
60.7
60
+15.5%
+15.6%
50
40
30
20
2003
(1)
2004
(1)
2005
2006
2007
REFLECTS STRENGTHENING OF OUR BALANCE SHEET DURING A PERIOD OF MAJOR
ACQUISITIONS, INTEGRATION AND BUSINESS CHANGE.
(1) For the period 2003 and 2004 EPS shown is before goodwill amortisation
Dividends per share
75
FINAL DIVIDEND 2007: 39c
INTERIM DIVIDEND 2007: 35c
65
Cents
51
45
35
+25.4%
59
55
45
74
39
+15.7%
+13.3%
+15.4%
+18.2%
25
15
5
2003
2004
2005
2006
2007
5
Michael Luscombe
Managing Director and
Chief Executive Officer
6
Private Label
Lowering Prices
Impact of Drought
Compliance
Sustainability Strategy 2007
Climate Change
Status
3.7 million tonnes CO2e
Target
40% reduction in
CO2 by 2015
from facilities
Strategy
• Green stores
• Behavioural change
• Energy efficiencies
• Renewable
Water
Status
Approx 2.2 GL (supermarkets)
Target
200m litres
reduction a year
by 2010
Strategy
• Water Wise rollout
• Water saving
initiatives
• Every Drop Counts
Waste
Status
140,000 tonnes to landfill
Target
ZERO food
waste to landfill
by 2015
Strategy
• Expand green waste
recycling scheme
• Staff education
• Phase out polystyrene
Sourcing
• Education of buyers and decision makers
throughout the business
• Identification of process gaps and
development of corrective strategies
• Tailored training for buyers on specific
sustainable sourcing issues
Packaging
• Creation of supplier forum for sustainability
• Review of Private Label procurement
• Implement impact assessment trials for
Private Label
• Double the use of plastic crates to replace
cardboard and foam boxes to 3.4 milion
Green Stores
1st Green Store – Rouse Hill
100% - new stores post 09/08 designed to sustainable principles
• 25% less energy used
• Improved lighting technology
• Fuel substitutions
• Development of Green star rating for supermarkets
Financials
18
Sales – continuing strong sales growth
42.5
45.0
37.7
$ billions
40.0
35.0
30.0
25.0
31.4
26.3
9.6% (1)
27.9
12.6%
20.4%
12.2%
6.1%
20.0
15.0
10.0
5.0
2003
(1)
Increase is based on 52 weeks.
2004
2005
2006
2007
CODB / Sales
23%
Our targeted CODB reduction of 20 basis continues to be achieved
when the distorting impacts of Petrol and Hotels are excluded. CODB
was also affected by the industrial action in New Zealand.
Down 12 pts
in 2007
22%
Percentage
21.55%
21.10%
21%
20.73%
20.47%
20.35%
20%
19%
2003
2004
2005
2006
2007
Gross Profit Margin
26%
As expected Gross Margin has improved reflecting
improved buying and shrinkage, the success of our
private label offering, the change in sales mix achieved
through the rollback campaigns and a reduction in
supply chain transition costs.
Up 19 pts
excluding
hotels
Up 29 pts
in 2007
25.32%
Percentage
25.14%
25%
25.03%
24.91%
24.89%
2004
2005
24%
23%
2003
2006
2007
EBIT – up 22.6% growing faster
than sales
2,111
2200
2000
22.6%
1,722
1800
$ millions
1600
1,302
1200
800
(2)
32.3%
1400
1000
(3)
1,065
946
(1)
20.5%
12.6%
13.6%
600
400
200
2003
(1)
(2)
(3)
2004
2005
2006
2007
Includes ALH from 31 October 2004 and MGW from 2 January 2005.
Includes Progressive (NZ) business and 20 Australian ex-FAL store results from 2 November 2005, BMG from 1 July 2005, Taverner
Hotel Group from 6 February 2006, and ALH and MGW results for the 52 weeks.
Includes Progressive and Taverner Hotel businesses for the full 52 weeks.
Profit after tax – up 27.5%
1,294.0
1,300
+27.5%
1,200
1,100
1,014.6 (2)
1,000
$ Million
(3)
+24.3%
900
816.2
800
687.8
700
609.5
600
(1)
+18.7%
+12.8%
+16.5%
500
400
2003
(1)
(2)
(3)
2004
2005
2006
2007
Includes ALH from 31 October 2004 and MGW from 2 January 2005.
Includes Progressive (NZ) business and 20 Australian ex-FAL store results from 2 November 2005, BMG from 1 July 2005, Taverner
Hotel Group from 6 February 2006, and ALH and MGW results for the 52 weeks.
Includes Progressive and Taverner Hotel businesses for the full 52 weeks.
Shareholder Payouts
1000
Franking credits available for
distribution = $757m.
(after the final dividend)
941
893
534
800
893
791
548
693
633
$ millions
Dividend
Buy Back
600
693
604
349
141
538
538
463
400
346
407
346
284
200
243
0
2000
2001
2002
2003
2004
2005
2006
2007
PROFIT GROWTH, COUPLED WITH BALANCE SHEET MANAGEMENT, DELIVERED $5,439m
PAYOUT TO SHAREHOLDERS OVER LAST 8 YEARS
Strong Share Price Performance
5.0
TSR CAGR
Jun 2000 Jun 2007
4.5
4.0
WOW
29.2%
3.5
3.0
2.5
2.0
All Ords 14.9%
1.5
1.0
0.5
Jun-2000
Jun-2001
Jun-2002
Jun-2003
Jun-2004
Jun-2005
Jun-2006
Jun-2007
Sales and Earnings Guidance FY08
•
We believe we are very well positioned for future growth
Sales
•
For FY08 we expect overall group sales to grow in the range of 7% to
10%.
Earnings
•
We also expect that EBIT will continue to grow faster than sales in
FY08.
•
Net profit after tax for FY08 is expected to grow in the range of 19%
to 23%.
•
The 2008 financial year is a 53 week trading year and these
statements are on a 53 week basis.
Whilst we are pleased with the momentum in the business we are mindful that discretionary spending
continues to be influenced by macro-economic factors such as fluctuating petrol prices, interest rate rises and
the flow on impacts of the sub prime debt markets in the United States.
27
Item 1: Review of Accounts
28
Item 2: Remuneration Report
29
Item 3: Election of Directors
30
Item 3a: Election of Directors
Diane Grady
Item 3b: Election of Directors
Ian Macfarlane
Item 3c: Election of Directors
Alison Watkins
Item 4: Woolworths Long Term
Incentive Plan
34
Item 5: Directors’ Fees
35
Item 6: Adoption of New
Constitution
36
Resolution 2: Remuneration Report
For
494,735,813
93.84%
Against
7,633,538
1.45%
Open
18,506,476
3.51%
Resolution 3a: Re-election of
Diane Grady
For
499,615,831
94.45%
Against
4,729,881
0.89%
Open
18,361,880
3.47%
Resolution 3b: Election of Ian
Macfarlane
For
501,920,555
94.89%
Against
2,240,911
0.42%
Open
18,467,230
3.49%
Resolution 3c: Election of Alison
Watkins
For
501,726,432
94.88%
Against
2,375,966
0.45%
Open
18,419,405
3.48%
Resolution 4: Long Term
Incentive Plan
For
473,632,510
91.79%
Against
29,306,439
5.68%
Open
6,772,789
1.31%
Resolution 5: Director’s Fees
For
461,209,401
89.38%
Against
41,886,895
8.12%
Open
6,770,109
1.31%
Resolution 6: New Constitution
For
452,918,990
86.02%
Against
47,483,174
9.02%
Open
19,751,631
3.75%
44