#1ASX Announcement 23 August 2023 ASX Market Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 Full Year Results Presentation Woolworths Group Attached for release to the market is the Full Year Results Presentation for the period ended 25 June 2023. Authorised by: Kate Eastoe, Group Company Secretary For further information contact Investors and analysts Paul van Meurs Head of Investor Relations +61 407 521 651 Media Woolworths Press Office [email protected] +61 2 8885 1033 Woolworths Group Limited ABN 88 000 014 675 1 Woolworths Way, Bella Vista NSW 2153#2Woolworths Group Full Year Results 2023 Woolworths Group ours n The fresh food people#3Woolworths Group Full Year Results 2023 Contents F23 Group summary and progress Brad Banducci Group financial results and capital management Stephen Harrison Business performance update Current trading and outlook Brad Banducci <+ 4 16 25 42 Woolworths Group We create better experiences together for a better tomorrow 2#4Acknowledgement of Country Woolworths Group acknowledges the many Traditional Owners of the lands on which we operate and pay our respects to their Elders past and present. We recognise their strengths and enduring connection to lands, waters and skies as the Custodians of the oldest continuing cultures on the planet. We remain committed to actively contributing to Australia's reconciliation journey through listening and learning, empowering more diverse voices and working together for a better tomorrow. Woolworths Group reaffirms our support for the Uluru Statement from the Heart, and its call for a First Nations Voice to Parliament enshrined in the Constitution. 每月時 BREE BAW 0000 "A Brave Heart for a Better Tomorrow" artwork by David Williams of Gilimbaa#5F23 summary Investing in our customers, team and platforms Delivered value and convenience to our customers in response to challenging inflationary environment with more to do in F24 Customer metrics largely stable over the year and improving as we exited Q4; Customer Care scores remain a highlight Improved Group performance led by Australian Food with financial results benefitting from relative stability and absence of material COVID costs of $323m incurred in F22 Strong WooliesX performance with eCom returning to growth in H2; Cartology and Rewards & Services businesses growing strongly Progress on evolving our Connected Group; focused on sustainable long-term value creation for all stakeholders ING FOR A ENER PUTURE PUSHING FOR A GREENER FUTURE PUSHING FORA GREENER FUTURE PUSHING FOR A GREENER FUTURE#6Woolworths Group Full Year Results 2023 Customer scores largely stable over the year but some momentum as we exited F23; Care remains strong Voice of Customer: Net Promoter Score 64 58 49 37 Jun-22 Woolworths Group Woolworths Food Retail BIG W WooliesX eCom Countdown Supermarkets Voice of Customer: Customer Care Score 84 82 81 62 60 49 39 Jun-23 Jun-22 Woolworths Food Retail BIG W WooliesX eCom Countdown Supermarkets Note: Single month scores. Customer Care score measures in Australian and New Zealand Food = Team member cared; BIG W = Friendly and helpful team member 85 - 84 81 80 Jun-23 LO 5#7Woolworths Group Full Year Results 2023 Pre-COVID shopping behaviours returning but value an increasing focus for customers MA Items per basket Comp % Shopping frequency Comp transaction growth % Shift to value Own brand & EDR active members AU Food NZ Food Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Woolworths Group 1 Long Life own brand sales AU Food NZ Food Items per basket normalising after COVID disruption in prior years Customers shopping more frequently over the past year Own brand sales growth1 Active Rewards members Own brand growth accelerating and active Everyday Rewards members increasing 6#8Woolworths Group Full Year Results 2023 Impact of inflation and cost-of-living pressures having uneven impacts Woolworths Food Retail average price change and comp item growth¹ Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Non-scan customers Budget members Mainstream members Q3'23 Q4'23 Premium members Woolworths Food Retail comparable item growth Woolworths Food Retail change in average prices Average price inflation began to moderate in H2 with item growth flat 1 Year on year % change Woolworths Group BIG W Q4 growth by customer segment² # of customers Sales Mainstream and premium customers trading into BIG W. Budget customers cutting back 2 Year on year % change; based on Everyday Rewards sales and non-scan data 7#9Woolworths Group Full Year Results 2023 Delivering value for customers with more to come in F24 Woolworths The f Get your Woolies worth Woolies worth with today's fresh food people! PRICES DROPPED for Spring Special LOW PRICE FRESH Specials Get your >450 seasonal products on Prices Dropped for Spring 6,000 weekly specials >3,000 products on Low Price >600 weekly Fresh specials More value every day Big savings Woolworths Group everyday rewards BIGW everyday rewards r Xeveryday from Everyday Rewards Member Price >14 million total members Members accessing Boosters up 7% vs. F22 Subscribers saving an extra $300 per year Member Prices launched August 2023 Back to School Value BIG WHOPPING TY SALE Black Fri-Jay 'Last year's price' promise on key products 500 specials on big brand toys Great deals and Everyday Reward points on hero lines BIG deals Launched BigDeals in Q4 00#10Woolworths Group Full Year Results 2023 Digital traffic and eCom growth continues Food and Everyday digital platforms (websites and apps) 2.5x Q1 F20 16.3m Q4 F23 avg. weekly digital visits 6.5m Q1 F20 avg. weekly digital visits милили Jul 19 Woolworths Group Jun 20 COVID period Jun 21 Jun 22 Jun 23 Note: Charts based on monthly data 1 Normalised results and growth reflect adjustments in F19 to remove the impact of the 53rd week in F19 WooliesX eCom sales 37.8% 4-YR CAGR $5,079m F23 eCom sales $1,410m F191 eCom sales Ли Лили COVID period 6 Jul 19 Jun 20 Jun 21 Jun 22 Jun 23#11Woolworths Group Full Year Results 2023 Our Connected Group Woolworths Retail Our cornerstone B2C retail food business, famous for good food, good prices, good acts and always convenient We create better experiences together for a better tomorrow Metro eCommerce Supermarkets Woolworths Retai everyday Products Woolworths Food Company Wholesale Digital & data Customer 1st Team 1st Rewards-Me Retail Platforms ers-Services BIG W and Specialty Food services Health +9 Woolworths Food Company Delivering brands, products and capabilities that deliver value and differentiation for our Group BIGW Retail Business Platforms Digital, technology and analytics enabled Platform businesses delivering value for Woolworths Group and partners Woolworths Group Supply chain & fulfill Network & property GM Pet Supported by our Teams and Group Platforms BIG W & Specialty Extending into meeting more of our customers everyday needs with real value, real solutions and real care through BIG W and Specialty (W Living) 10#12Woolworths Group Full Year Results 2023 Investing in our customers, team, communities and platforms Customers Team Communities BIGW Delivening goods for the greaturg good Coad Platforms • • Highly competitive pricing across all businesses and strong value proposition • Strong eCom and digital experience; WooliesX Q4 eCom sales growth of 17.2% and Group average weekly digital traffic of 23.7 million • More personalised offers for Everyday Rewards members from Real Time Loyalty launch F24 focus Continue Value, Core, UP and multicultural range curation; grow same day eCom propositions · Everyday Rewards Member Pricing and rollout of Everyday Extra • More value through 'We can help you Spend Less today' including digital tools • • Supporting meaningful hours through multi-skilling and cross-store working • Everyday Extra launched for team in Australia • Launched 24hr health, safety and wellbeing app, Sonder, to New Zealand team members F24 focus >$400m investment in Australian and New Zealand store teams through wage increases in F24 • ~$40m capex investment in team safety, including CCTV upgrades, team safety camera and wearable duress device • Embedding multi-skilling and cross-store working nationwide . • Removal of reusable plastic bags nationwide resulting in ~350m fewer reusable bags annually once phase out completed • 80% of food waste diverted from landfill from Woolworths supermarkets • $76 million surplus food and groceries donated to charity partners F24 focus Announced $9m donation to Australian and NZ food rescue partners to support food relief • Increasing influenceable spend with First Nations non-trade suppliers to 3% by 2025 • Partner with industry and government to restart soft plastic recycling • Increasing volume in MFDC and Heathwood; MSRDC at 2.4m cartons per week and Moorebank NDC transitioning to commissioning and testing • • 23 new stores and 57 renewals completed across Group Strong growth in Cartology; media proposition further enhanced by Shopper Media F24 focus SAP UDF upgrade; continue rollout of warehouse and transport management system, Blue Yonder Progress supply chain transformation with Auburn CFC, Moorebank NDC and Christchurch Fresh DC opening before end of 2024 • Scaling wiq, Cartology and MyDeal 11#13Woolworths Group Full Year Results 2023 Adjacencies increasingly contributing to growth in F23 Woolworths Food Company (PFD FOODSERVICES Australian Grocery Wholesalers Retail Business Platforms BIG W & Specialty H Delivering brands, products and capabilities that deliver value and differentiation for our Group F23 sales growth of 28% due to diversified customer base and new business wins New partnership established with remote store operator Community Enterprise Queensland Greenstock AUSTRALIAN MEAT BY WOOLWORTHS Focus on E2E operational improvements through Hilton partnership, protein supply chain resilience and store service levels Digital, technology and analytics enabled platform businesses delivering value for Woolworths Group and partners cartology Sales growth of 29% (inc. Shopper) despite a more challenging market wiq Woolwortha a Quantum Delivered 30+ use cases in F23 and working across the Group to deliver value PRIMARY CONNECT PC+ delivered strong sales and EBIT growth Extending into meeting more of our customers everyday needs with real value, real solutions and real care BIGW MyDeal BIG W range on MyDeal since August 2022 with stable sales growth on the platform healthylife Healthylife and Superpharmacy partnership announced in Dec 2022, acquiring key technology and warehouse assets Petstock Group Proposed entry into specialty pet segment via Petstock Group (subject to ACCC approval) 1 Includes redesigned, reformulated and new to market 12#14Woolworths Group Full Year Results 2023 Supply chain transformation past the halfway mark; big year in 2024 2019 Improved efficiency and performance as sites mature 2020 2021 2022 Melbourne South Regional DC, Vic commissioned in February 2019 Now consistently averaging 2.4m cartons per week Melbourne Fresh DC, Vic commissioned August 2020 Averaging 1.4m cartons per week Palmerston North DC, NZ commissioned in August 2021 PRIMARY CONNECT Heathwood Chilled & Frozen DC, Qld commissioned in February 2022 2023 2024 Erskine Park DC, NSW transitioned to ambient grocery DC Q1 F24 Moorebank National DC, NSW opening H1 F25 Auburn CFC, NSW first automated CFC opening 2024 2025 Transitioned to commissioning and testing phase Moorebank Regional DC, NSW expected to open 2025 13 Adelaide Regional DC, SA expansion commissioned in June 2020 CONNECT Hazelmere DC, WA servicing BIG W commissioned in December 2021 Auckland Fresh DC, NZ commissioned in June 2022 PC+ opened three temperature controlled cross dock locations in F23 Christchurch Fresh DC, NZ opening 2024 On track for opening; new DC to enhance F&V offer for the South Island, NZ 2025+ Sydney Chilled and Fresh DC#15Woolworths Group Full Year Results 2023 Progress across our sustainability pillars in F23 People Making a positive change to the future of our people, our partners and our communities Refrigeration low emission Planet Ensuring we leave the environment better off for future generations 4. Product Having a positive impact on people and the planet through the product and services provided Orgable Platinum AWEI employer status achieved in 2023 Launched Innovate level Reconciliation Action Plan in June 2023 $122m of direct community contributions #1 Retailer globally in 2022 Corporate Human Rights Benchmark 36% reduction in scope 1 & 2 emissions¹ from 2015 baseline 22.6% Green electricity across operations ▲ 6% vs F22 27 EV trucks deployed as part of goal to achieve full EV home delivery fleet by 2030 >34m meals donated via food rescue partnerships >14,000t virgin plastic packaging reduction 26% reduction vs F18 baseline² 49% average recycled content across all packaging #1 Australia's Healthiest Supermarket Own Brand³ fourth year in >30m pieces of Free Fruit for Kids in F23 a row Using the market-based method for calculating electricity emissions. Further details of the emissions profile are available in the 2023 Sustainability Data Pack Own brand virgin plastic packaging reductions from targeted initiatives across Australian Food, New Zealand Food and BIG W. Calculated based on the change in virgin plastic weight multiplied by the volume of either sales or purchases in the 12 months prior to the packaging change 1 Woolworths 2 Group 3 The George Institute for Global Health's FoodSwitch: State of the Food Supply report (2019-2022) 14#16Woolworths Group Full Year Results 2023 Contents F23 Group summary and progress Brad Banducci Group financial results and capital management Stephen Harrison Group financial results Key balance sheet metrics Capital management framework Cash flow summary Capital expenditure Capital management Business performance update Current trading and outlook Brad Banducci Woolworths Group 4 16 25 25 42 15#17This screen is in place to help safeguard you and our team Customer Service © Group financial results and capital management returns Ritle Woolworths Group#18Woolworths Group Full Year Results 2023 F23 results summary Group sales ($ million) 64,294 ▲ 5.7% 60,849 53,080 55,733 48,805 vs. F22 ▲ 7.1% 4-YR CAGR F191 F20 F21 F22 F23 Group NPAT2 ($ million) Group EBIT ($ million) Basic EPS² ($ cents) ▲15.8% vs. F22 3,116 2,764 2,690 2,343 2,485 ▲ 7.4% 1 4-YR CAGR F19 F20 F21 F22 F23 Woolworths Group 1 1,514 1,721 F22 F23 124.0 ▲13.7% vs. F22 141.7 14.3% vs. F22 F22 F23 Note: All figures based on continuing operations before significant items Normalised results and growth reflect adjustments in F19 to remove the impact of the 53rd week in F19 and if AASB 16 had been in place in F19 2 Attributable to equity holders of the parent entity 17#19Woolworths Group Full Year Results 2023 Group trading performance Group sales and EBIT $ MILLION Before significant items Australian Food H2 F23 F23 Excluding direct COVID costs in the prior year, EBIT increased by 9.5% H2 F23 SALES CHANGE H2 F23 EBIT CHANGE F23 SALES CHANGE F23 EBIT CHANGE 23,487 7.6% 1,437 20.1% 48,047 5.0% 2,865 19.1% Australian B2B1 2,066 12.0% 14 (49.3)% 4,324 17.4% 63 13.0% New Zealand Food 3,537 8.7% 117 11.6% 7,240 2.1% 228 (22.9)% New Zealand Food (NZD) 3,833 8.4% 127 10.3% 7,912 4.6% 249 (21.0)% BIG W Other 1,2 Total Group before significant items Woolworths Group 2,077 (0.3)% 11 (63.7)% 4,785 8.0% 145 165.3% (42) (11.1)% (100) 90.4% (102) 4.4% (185) 51.7% 31,125 7.5% 1,479 13.1% 64,294 5.7% 3,116 15.8% 1 Revenue from the sales of goods and services in Australian B2B includes $351 million (2022: $302 million) of freight revenue. However, at a Group level, this is reclassified and recognised as a reduction in cost of sales. As a result, $351 million (2022: $302 million) reduction has been recognised in Other. This has not resulted in a change to earnings before interest and tax at a Group level 2 Other comprises Quantium and MyDeal (which are not considered separately reportable segments), as well as various support functions, including property and Group and overhead costs, the Group's share of profit or loss of investments accounted for using the equity method (including Endeavour Group), and consolidation and elimination journals 18#20Woolworths Group Full Year Results 2023 Average inventory days up marginally; strong ROFE growth on COVID-impacted prior year 1 29.9 F21 Average inventory days1 28.6 F22 29.7 F23 Average inventory days increased by 1.1 days due to higher inventory holdings driven by inflation and improved availability Average inventory days is calculated as the average of the last 13 months divided by the last 52 weeks cost of sales multiplied by 364 days. Days reflect the reclassification of DC costs into gross profit ROFE Percentage (%) 14.9 13.7 F22 F23 ROFE (before significant items) was 14.9%, an increase of 1.2 pts compared to F22 largely due to higher Group EBIT from continuing operations 19#21Woolworths Group Full Year Results 2023 Woolworths Group capital management framework Investment proposition Capital allocation to sustain business and support shareholder returns One of Australia's leading and most trusted brands Leading market position in Food & Everyday Needs Growth opportunities in eCom and adjacencies Defensive characteristics through the cycle Strong cash flow from AUS and NZ businesses Cash from operating activities of $6.0b before interest and tax Strong operating cash flow generation Sustaining capital Full year fully franked dividend per share of 104c, up 13% vs. F22. Payout ratio: 73.6% Typically 70-75% dividend payout (fully franked) Cash realisation ratio of 113% Free cash flow Disciplined capital allocation to manage free cash flow Investment in growth Organic and inorganic growth that exceeds minimum return hurdles Debt reduction Improve credit quality and capacity to invest for the future Return excess capital Special dividends or buy-backs to distribute excess cash and franking credits to shareholders $517m on growth projects Net debt/EBITDA of 2.6x (F22: 3.2x) 20 20 Solid investment grade credit rating#22Woolworths Group Full Year Results 2023 Strong operating cash flow to sustain the business and invest for growth $ MILLION EBITDA continuing operations EBITDA discontinued operations Group EBITDA F23 F22 CHANGE 5,577 5,052 10.4% 6,387 n.m. 5,577 11,439 (51.2)% Working capital and non-cash movements - continuing operations Working capital and non-cash movements - discontinued operations Cash from operating activities before interest and tax 439 (235) n.m. (6,387) n.m. 6,016 4,817 24.9% Interest paid - leases (542) (542) Net interest paid - non-leases Tax paid (133) (59) 125.4% (587) (838) (30.0)% Total cash provided by operating activities 4,754 3,378 Total cash used in investing activities (1,844) (2,457) 40.7% (24.9)% Cash flow before lease payments, dividends, share payments and proceeds from loans to related party 2,910 921 216.0% Repayment of lease liabilities (1,067) (1,019) 4.7% Dividends paid and payments for shares held in trust (1,141) (1,137) 0.3% Proceeds from loan to related party 1,712 n.m. Payments for share buy-backs Net cash flow (2,000) n.m. 702 (1,523) n.m. Cash realisation ratio (CRR) 113% 86%1 Woolworths Group 1 CRR in F22 adjusted for non-cash gain on demerger of Endeavour Group of $6,387m. F22 unadjusted CRR was 33% السلام واطقم Crowch Enough DOE ngantown Fam Todd pant Fab hankak Spa bay bucke anx anouch the от и сорости Prior year included Endeavour Group gain on demerger Working capital inflow in F23 driven by reduction in net investment in inventory. Prior year outflow due to stock build to better manage supply chain disruption and improve availability Operating cash flow increase due to strong EBITDA growth and working capital inflow Higher interest paid reflects higher floating interest rates and higher average net debt Lower tax paid, primarily reflecting lower taxable income in F22, paid in F23 Reduction compared to prior year due to sale of 5.5% of Endeavour Group in December offset by business acquisitions. Operating capex in line with prior year. Refer to slide 22 Strong CRR due to working capital inflows and lower cash tax paid 21#23Woolworths Group Full Year Results 2023 Operating capex profile largely in line with prior year C Uus geadow generaten Few Deby rodon ality an 22 22 $ MILLION Sustaining capex Growth capex Operating capex F23 F22 1,371 1,396 517 525 Sustaining capex $ MILLION SIB Renewals Supply chain 1,888 1,921 IT Productivity F23 F22 317 242 364 423 254 358 274 197 162 176 Property development 594 486 Growth capex Gross capex 2,482 2,407 $ MILLION F23 F22 New stores 124 111 Property sales Group net capex Net lease asset additions1 (361) (332) Digital 151 121 2,121 2,075 eCom 123 147 Other growth 119 146 324 542 F24 operating capex expected to be ~$2b Sustainability capex² $123 million including refrigeration, solar, LED lighting and energy management Woolworths Group 1 Lease asset additions (excluding acquisition of businesses) less terminations 2 Sustainability capex included in sustaining and growth capex. Includes capex on direct sustainability initiatives as well as initiatives with a strong sustainability benefit#24Woolworths Group Full Year Results 2023 Dividends and funding 58 cps final dividend¹ Dividends (cents per share) 108 17 51 92 104 58 53 53 46 40 39 F21 F22 Interim Final F23 Non-recurring Endeavour Group 1200 800 400 P Debt maturity profile ($m)² T ктор проголт сака том пологово TRA D Today 0 F24 F25 F26 F27 F28 F29 F30 F31 F32 F33 ■Capital markets debt Bank debt - drawn • Fully franked final dividend of 58 cps, taking the full year ordinary dividend to 104 cps, up 13% with the dividend reflecting NPAT growth • • Full year payout ratio of 73.6% consistent with prior years • H2 F23 DRP expected to be satisfied via issues of new shares, no discount Franking credit balance of ~$700m after payment of F23 final dividend Weighted average debt maturity of 3.8 years Net debt/EBITDA (leverage ratio) of 2.6x (F22: 3.2x)³ Solid investment-grade credit rating with significant headroom S&P: BBB (stable outlook)4 Moody's: Baa2 (stable outlook)4 The Group has $400m of domestic medium-term notes maturing in April 2024, which will be refinanced or repaid from existing committed undrawn bank facilities prior to maturity and org 2 Bank debt drawn as at 25 June 2023 under short-term uncommitted facilities included in F24 maturities. Excludes lease liabilities and undrawn committed bank debt 1 Fully franked Woolworths Group 3 Calculated as net debt (incl. lease liabilities) / EBITDA on continuing operations before significant items 4 Credit ratings issued by a credit rating agency which holds an Australian Financial Services Licence authorised to issue credit ratings to wholesale clients only and are published for the benefit of the Group's debt providers 23#25Woolworths Group Full Year Results 2023 Contents F23 Group summary and progress Brad Banducci Group financial results and capital management Stephen Harrison Business performance update Current trading and outlook Brad Banducci Woolworths Group 4 16 25 42 24#26Woolworths O Today's Fresh Food People Good people igitalie#27Woolworths Group Full Year Results 2023 Australian Food F23 F221 CHANGE Total sales ($m) EBITDA ($m) 48,047 45,740 5.0% 4,651 4,044 15.0% EBIT ($m) 2,865 2,406 19.1% EBIT ($m) - excluding direct COVID costs 2,865 2,617 9.5% Gross margin (%) CODB (%) EBIT to sales (%) ROFE (%) F23 SUSTAINABILITY METRICS Scope 1 & 2 emissions (tonnes)2 123 Sales ($m) EBIT ($m) 4-YR CAGR: 5.8% 4-YR CAGR: 8.4% F19 F20 F21 F22 F23 26 28.1 27.4 76 bps 22.1 22.1 6 bps 6.0 5.3 70 bps 29.0 24.9 4.1 pts 1,546,804 F19 F20 F21 F22 F23 1,687,757 ROFE (%) 4.2 pts F193 F20 F21 F22 F23 F23 and F22 emissions data reflect market-based scope 2 electricity reporting. F22 has been restated to also reflect new guidance from the Clean Energy Regulator for treatment of Australian Carbon Credit Units F19 ROFE has not been restated to conform with new reporting segments Prior period restated to reflect Woolworths at Work (8.4)% Woolworths The fresh food people#28Woolworths Group Full Year Results 2023 Australian Food Woolworths Food Retail (Stores and eCom) Total sales ($m) EBITDA ($m) EBIT ($m) EBIT to sales (%) Sales per square metre² ($) SALES PERFORMANCE BY BUSINESS ($m) Woolworths Supermarkets (store-originated) Metro Food Stores (store-originated) eCom Woolworths Food Retail (Stores and eCom) 1 Prior period restated to reflect Woolworths at Work 2 Prior year sales per square metre has been restated to conform to the current year's presentation of sales channel F23 F22¹ CHANGE 47,648 45,445 4.8% 4,550 3,982 14.3% 2,838 2,399 18.3% 6.0% 5.3% 68 bps 18,921 18,364 3.0% 41,413 39,557 4.7% 1,156 951 21.6% 5,079 4,937 2.9% 47,648 45,445 4.8% 27 27 Woolworths O The fresh food people#29Woolworths Group Full Year Results 2023 Progress against strategic priorities wchwerths Caring for our communities and team Discover healthier choices Build love for Today's Fresh Food People Innovate our core offer OZHARVEST NOURISH OR O 28m meals donated via store food waste diversion; additional 13m meals in F24 via Woolworths donation Look for and above Healthier checkouts in all stores with 80% of snacks 3.5+ HSR Helping customers get their Woolies worth PRICES DROPPED for Spring LOW PRICE on family $1150 essentials Save at least 20% ath The 41 Mini Woolies stores Tailoring our range Tap here Convenient and connected experiences 708 Direct to boot enabled stores Simplify our E2E processes, leveraging technology and data Four seasonal and Christmas Prices Dropped campaigns ~3,000 products on Low Price; 30% more products vs. F22 20% discount on Odd Bunch; sales growth of 9% vs. F22 Rostering, resourcing and ways of working VID Agile for store teams with visual management boards and daily huddles RT3 Right Toom Fight Task Right Time RT3 rostering tool rolled out nationally Focus on multi-skilling team and enabling cross-store working Curated range (Value, Core, UP) cover 52% of sales, generating incremental sales and GP Technology Electronic shelf labels in 144 stores Scan Assist live in 474 stores Boost Shop Enjoy Members accessing Booster offers up 7% vs. June 2022 Freshest fresh PRICES 10 Launched Bakery cadetship program Poultry-first layout in 78 Value stores to highlight affordable protein Operational excellence Customer 1st availability: embedding consistently good inventory routines 28#30Woolworths Group Full Year Results 2023 Woolworths 360 evolving our integrated network to best serve our customers 29 29 1 Opened 10 net new stores and completed 43 renewals across Woolworths Supermarkets and Metro Launched Proactive Services in Woolworths Supermarkets, an in-house trolley collection and cleaning team, currently in 69 stores Opened two new CFCs in Rochedale and Caringbah; and progressed construction of first automated CFC in Auburn, NSW LOVE you a BUNCH Tap (I'm here on the apr Rolled out solar panels to 54 supermarkets, two DCs and two CFCs with a total of 231 sites across Australia Completed flagship renewal at Bondi Beach Metro Food Store Expanded Direct to boot with 81 net new Direct to boot enabled stores, with 708 stores at end of F23 Woolworths O The fresh food people#31Woolworths Group Full Year Results 2023 Australian Food WooliesX (including eCom) F23 F22 CHANGE 30 30 Total sales ($m) 6,432 6,090 5.6% DAP & EBIT before depreciation and amortisaton ($m) 340 261 30.0% DAP & EBIT ($m) 181 147 23.1% DAP & EBIT to sales (%) 2.8 2.4 40 bps SALES PERFORMANCE BY PLATFORM ($m) eComX (B2C and Woolworths at Work) 5,079 4,937 2.9% Digital & Media (idX/ Cartology) and Rewards & Services (EverydayX) 1,353 1,153 17.3% Total WooliesX sales 6,432 6,090 5.6% Eliminations and reclassifications (1,018) (877) 16.1% WooliesX sales after eliminations and reclassifications 5,414 5,213 3.9% DAP & EBIT PERFORMANCE BY PLATFORM ($m) eComX DAP 89 93 (4.9)% idX/ Cartology, EverydayX, TechX & support costs EBIT 92 54 70.9% WooliesX DAP & EBIT 181 147 23.1% Woolworths O The fresh food people#32Woolworths Group Full Year Results 2023 WooliesX F23 highlights idX & Cartology Record levels of digital traffic across Group and Food and Everyday digital platforms Woolworths everyday rewards +21% vs. Q4 F22 +21% Woolworths Group vs. Q4 F22 13x more offers enabled cartology +29% revenue vs. F22 +39% weekly active users vs. F22 Woolworths and Everyday Rewards app now overtaking web in digital traffic New and enhanced digital experiences with new tools to help engaged customers find value Shopping Lists users: +26% vs. F22 Completed transition to Real Time Loyalty Platform Enabled more personalised offers in real time and faster analysis of campaigns Launch of Cartology in BIG W and Metro Food Stores and acquisition of Shopper in F23 eComX Continued demand for convenience +9% increase in B2C active customers vs. F22 60 +2 pts vs. Q4 F22 improvement in >80% of orders fulfilled within 24 hours in June +8 pts vs. F22 EverydayX +29% Woolworths at Work sales growth vs. F22 Continued investment in eCom network Providing members with more value 14.5m everyday +6% members +750,000 vs. F22 everyday insurance from Wibolworths rewards +42% increase in EDR active app users vs. F22 increase in active members vs. F22 Continued engagement with the Everyday Rewards app supported by an enhanced user experience and more partners +7% increase in members accessing Booster offers in June F23 vs. F22 Rebranded and relaunched Everyday Insurance in February 2023, enabling cessing more member-only offers 400 Online VOC NPS Direct to 81 boot sites added new CFCs 2 opened in Rochedale & Caringbah Progressed our sustainability commitments electric 27 vehicles added to fleet ~1,500t plastic removed through transition to paper bags SATELFIED CUSTOMERS 2022 CANSTAR REWARDS Canstar Blue's 2022 Most Satisfied Customers in a Rewards Program for second consecutive year Note: idX was previously known as ConnectedX and includes Digital & Media 31#33PRIMARY CONNECT Australian B2B#34Woolworths Group Full Year Results 2023 Australian B2B F23 F22¹ CHANGE Sales and EBIT breakdown by continuing and exited business F23 F221 CHANGE Sales ($m) 4,324 3,684 17.4% Sales ($m) Continuing businesses 3,947 3,217 22.7% B2B Food (Woolworths Food Company 3rd party) 3,126 2,599 20.3% Exited businesses 377 467 (19.2)% B2B Supply Chain (Primary Connect 3rd party) 1,198 1,085 10.4% Total Australian B2B sales 4,324 3,684 17.4% EBITDA ($m) EBIT ($m) EBIT to sales (%) ROFE (%)² F23 SUSTAINABILITY METRICS Scope 1 & 2 emissions (tonnes)4 176 154 14.8% EBIT ($m) 63 56 13.0% Continuing businesses 105 62 68.7% 1.5% 1.5% (6) bps Exited businesses (included exit costs)³ (42) (6) n.m. Total Australian B2B EBIT 63 56 13.0% 5.0 4.2 83 bps 73,585 78,483 (6.2)% F22 ROFE has been calculated based on the average of mid and closing funds employed 1 Prior period restated to exclude Woolworths Work which has moved to Australian Food 2 Woolworths Group 3 4 In addition to the exit costs, $30 million was recognised in relation to the exit of the Summergate business in significant items in H1 F23 & F22 emissions data reflect market-based scope 2 electricity reporting. F22 has been restated to also reflect new guidance from the Clean Energy Regulator for treatment of Australian Carbon Credit Units 33 33#35Woolworths Group Full Year Results 2023 Australian B2B PFD FD B2B Food when reputation counts t counts $CES FRUIT Has avo are the Strong sales growth in PFD driven by new business, higher customer demand, and impact of inflation Australian Grocery Wholesalers partnership with Community Enterprise Queensland to supply its remote store network Reorganised B2B Food portfolio, including the sale of Summergate and the closure of Woolworths International in H2 B2B Supply Chain PRIMARY CONNECT + Woolworths Group PRIMARY Conte cuple. Woolworths 34 == Strong growth in PC+ driven by new customers and supported by opening of three temperature controlled cross- dock locations in H2 Successful transition of BIG W Hoppers Crossing DC to Primary Connect from 3PL; MSRDC consistently averaging 2.4m cartons per week Progressed multi-year supply chain transformation with initial phase of Sydney NDC in Moorebank complete and operational launch date planned for H1 F25#36Woolworths New Zealand 1 PRIMARY CONNECT PRIMAR CONNECT 2#37Woolworths Group Full Year Results 2023 New Zealand Food NZD ($) Total sales ($m) EBITDA ($m) EBIT ($m) Gross margin (%) CODB (%) EBIT to sales (%) Sales per square metre ($) ROFE (%) F23 SUSTAINABILITY METRICS Scope 1 & 2 emissions (tonnes) Sales (NZD$m) EBIT (NZD$m) 4-yr CAGR: 4.8% 4-yr CAGR: (7.4)% F23 F22 CHANGE 7,912 7,563 4.6% 572 611 (6.3)% 249 316 (21.0)% 23.1 23.2 (9) bps 20.0 19.0 94 bps 3.2 4.2 (102) bps 18,208 17,881 1.8% 5.2 7.0 (1.8) pts 62,255 63,782 ROFE (%) (2.7) pts F19 F20 F21 F22 F23 F19 F20 F21 F22 F23 F19 F20 F21 F22 F23 (2.4)% Woolworths New Zealand 36#38Woolworths Group Full Year Results 2023 F23 highlights Living our purpose BAKERY +9 pts Improved VOT advocacy vs. F22 +2 pts Q4 VOC NPS score vs. Q3 F23 and Q4 F22 Improved pay and conditions for store team Invested in a number of safety initiatives for customers and team Digital, eCom and innovation Pla Pick up Pick up 12.7% Q4 eCom penetration 104 stores with eLocker and Drive solutions 16.3% increase in average weekly app users 55 stores with electronic shelf labels Foundations for the future countdown CD Announced multi-year transformation program to deliver better experiences for customers and team Established NZ Grocery Wholesalers Began rollout of RT3, new rostering tool Ramp up of Auckland Fresh DC and commenced construction on Christchurch Fresh DC Woolworths New Zealand 37#39Apne St somersault 66.600 Somersault Somersau BIGW#40Woolworths Group Full Year Results 2023 BIG W Total sales ($m) EBITDA ($m) EBIT ($m) Gross margin (%) CODB (%) EBIT to sales (%) Sales per square metre ($) ROFE (%) F23 SUSTAINABILITY METRICS Scope 1 & 2 emissions (tonnes) 1 Sales ($m) EBIT ($m) 4-yr CAGR: 6.5% F19 F20 F21 F22 F23 F23 F22 CHANGE 8.0% 41.6% 4,785 4,431 348 245 145 55 31.6 31.5 28.6 30.3 3.0 4,756 11.1 103,061 F20 F21 F22 F23 F19 165.3% 9 bps 1.2 (170) bps 180 bps 4,409 7.9% 4.6 6.5 pts 125,533 ROFE (%) 13.5 pts F21 F22 F23 F19 F20 1 F23 & F22 emissions data reflect market-based scope 2 electricity reporting. F22 has been restated to also reflect new guidance from the Clean Energy Regulator for treatment of Australian Carbon Credit Units (17.9)% 39 BIGW#41Woolworths Group Full Year Results 2023 F23 highlights Live our purpose and show real care Accessible and relevant to all Australian families Turbocharge digital experience and eCom Distinctive offer underpinned by great value BIGW BIGW TOYS Joy TOYS O Welcome book Mol Carpalgel Store-controllable VOC stable in F23 at 83% National Toys for Joy program saving over 130 tonnes of waste from landfill in F23 Breakfast library program now supporting 30 schools every week in partnership with Australian Literacy and Numeracy Foundation Ranked in Australia's Top 7 Most Trusted Brand by Roy Morgan June 2023 Created new core store blueprint and completed two renewals at Kawana Waters, Qld and Greenhills, NSW Opening of new small format BIG W store at Town Hall, the only discount department store in Sydney CBD Opened 21 new Direct to boot sites and two eStores in Winston Hills, NSW and Watergardens, Vic ~500k downloads of BIG W app in F23 Launched Cartology in BIG W, with 175 screens installed in F23 Record sales in H1 and strong performance in seasonal events, including Black Friday, Easter and Christmas More value on offer with the launch of two new own brands Openook (Home & Living) and Somersault (Toys) Record Everyday Rewards scan rates in F23 Best in class availability and supply chain Successful transition of Hoppers Crossing DC (Vic) from 3PL to Primary Connect Improvements to customer availability as supply chains continue to stabilise with Store-controllable VOC Availability score reaching 80 40 40 BIGW#42Woolworths Group Full Year Results 2023 Contents F23 Group summary and progress Brad Banducci Group financial results and capital management Stephen Harrison Business performance update Current trading and outlook Brad Banducci Woolworths Group 4 16 25 42 41#43Woolworths Group Full Year Results 2023 Transformation of Woolworths New Zealand to deliver improved medium-term performance 42 42 Better place to shop Countdown rebranded to Woolworths. 80 renewals planned over three years. Real focus on value (WFC and value mechanics) Everyday Rewards to launch in Feb 2024. MILKRUN by Woolworths New Zealand launched in July 2023 Greater focus on Fresh; Christchurch Fresh DC opening in 2024 complementing Auckland Fresh DC opened in June 2022 Better place to work BAKER Leveraging Group tech platforms including Next-Gen Promotions, RT3, Kronos, SuccessFactors, Workjam and Team Space in F24 Better team benefits including the roll out of Everyday Rewards Plus in F24 Investing in making stores safer with >$NZ45m in security measures and upskilling team members Better for New Zealand's tomorrow Increased investment in Food for Good Foundation Grassroot community support; futureFERNS netball sponsorship Reducing food waste and extension of scope 3 emission pilot, engaging with over 30 New Zealand suppliers Woolworths Group#44Current trading and outlook Continuing to invest in our customers, team and platforms Sales in the first eight weeks of F24 showing similar trends to Q4 F23 with solid growth in Food but BIG W sales declining, reflecting cost-of-living pressures Woolworths Food Retail sales up ~6.5%¹ with inflation moderating and low single- digit item growth. F24 EBIT growth needs to be viewed in the context of cost inflation and a strong focus on delivering value for our customers New Zealand Food sales up ~4.5%1. Short-term outlook remains challenging BIG W sales down ~6%¹. The outlook for the remainder of the year is uncertain but trading in Q2 will be key to the full year results Continuing to invest to deliver value for our customers including actively helping them to Spend Less this Spring Woolworths Group 1 Sales for the first eight weeks of F24#45Matrooms 65 Bobby Smashing value on Hass avocados GROWN FRESH MARKET UPDATE Thank you Woolworths Group Gr#46Woolworths Group Full Year Results 2023 Glossary 445 Active eCom customers AGW B2B B2C CAGR Cash realisation ratio Comparable sales Cost of doing business (CODB) Customer fulfilment centre (CFC) DAP DC Direct to boot E2E eStore Four-year CAGR Funds employed HSR MSRDC Customers that have made a purchase online in the last four weeks Australian Grocery Wholesalers Pty Limited Business to business Business to customer Compound annual growth rate Operating cash flow as a percentage of Group net profit after tax before depreciation and amortisation Measure of sales which excludes stores that have been opened or closed in the last 12 months and demonstrable impact on existing stores from store disruption as a result of store refurbishment or new store openings/closures Expenses which relate to the operation of the business Dedicated online distribution centres Directly-attributable profit includes costs directly-attributable to the B2C eCommerce business, such as picking, packing and delivery costs; marketing costs; eCom support costs; and variable DC costs Distribution centre Where a customer places an order online and drives to a dedicated area where a team member places the order directly in the customer's boot End-to-end Dedicated store for the fulfilment of online orders, sometimes incorporating automation Four-year compound annual growth rate. F23 results have been compared to normalised F19 results which have removed the impact of the 53rd week and if AASB 16 had been in place in F19 Net assets employed, excluding net tax balances Health Star Rating Melbourne South Regional Distribution Centre Woolworths Group#47Woolworths Group Full Year Results 2023 Glossary continued 46 46 NDC Net Promoter Score (NPS) n.m. PC+ Pick up Renewals Return on Funds Employed (ROFE) RT3 Sales per square metre SIB Total net debt Voice of Customer (VOC) Voice of Team (VOT) VOC NPS WFC Woolworths 360 National distribution centre A loyalty measure based on a single question where a customer rates a business on a scale of zero to 10. The score is the net result of the percentage of customers providing a score of nine or 10 (promoters) less the percentage of customers providing a score of zero to six (detractors) Not meaningful Primary Connect third-party logistics A service which enables collection of online shopping orders at a store or at select locations A total store transformation focused on the overall store environment, team, range and process efficiency (including digital) ROFE is calculated as EBIT before significant items for the previous 12 months as a percentage of average (opening, mid and closing) funds employed including significant items provisions A new team rostering and store standards solution in Woolworths Supermarkets (Right team, right task, right time) Total sales for the previous 12 months by business divided by average trading area of stores and fulfilment centres Stay in business Borrowings less cash balances including debt hedging derivatives and lease liabilities Externally facilitated survey of a sample of Woolworths Group customers where customers rate Woolworths Group businesses on several criteria. Expressed as the percentage of customers providing a rating of six or seven on a seven-point scale Survey measuring sustainable engagement of team members as well as their advocacy of Woolworths as a place to work and shop. The survey consists of nine sustainable engagement questions, three key driver questions and two advocacy questions VOC NPS is based on feedback from Woolworths Rewards members. VOC NPS is the number of promoters (score of nine or 10) less the number of detractors (score of six or below) Woolworths Food Company Woolworths Group's format and network development team looking after network plans, formats, eCommerce fulfilment, smart operations, facilities management and energy and waste management Woolworths Group#48Woolworths Group Full Year Results 2023 Glossary continued • Change in average prices • Trading area • Other non-IFRS measures used in describing the business performance include: Earnings before interest, tax, depreciation and amortisation (EBITDA) Cash flow from operating activities before interest and tax Significant items Fixed assets and investments Net investment in inventory Net assets held for sale Net tax balances Closing inventory days Closing trade payable days Average inventory days Woolworths Group Margins including gross profit, CODB and EBIT/(LBIT) Volume productivity metrics including transaction growth, items per basket and item growth Directly-attributable profit (DAP) 47 11#49Woolworths Group Full Year Results 2023 Disclaimer This presentation contains summary information about Woolworths Group Limited (Woolworths Group) and its activities current as at the date of this presentation. It is sourced from and should be read in conjunction with Woolworths' other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, available at www.asx.com.au. Information about Woolworths Group's financial performance is current as at the last announcement provided to the Australian Securities Exchange. This presentation has not been audited in accordance with Australian Auditing Standards. This presentation contains certain non-IFRS measures that Woolworths Group believes are relevant and appropriate to understanding its business. Refer to the Full Year Results and Dividend Announcement for further details. This presentation is for information purposes only and is not a prospectus or product disclosure statement, financial product or investment advice or a recommendation to acquire Woolworths Group shares or other securities. It has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Past performance is no guarantee of future performance. No representation or warranty, expressed or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Woolworths Group and its related bodies corporate, or their respective directors, employees or agents, nor any other person accepts liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including, without limitation, any liability from fault or negligence. This presentation may contain forward-looking statements including statements regarding our intent, belief or current expectations with respect to Woolworths Group's business and operations, market conditions, results of operations and financial condition, specific provisions and risk management practices. When used in this presentation, the words 'plan', 'will', 'anticipate', 'expect', 'may', 'should' and similar expressions, as they relate to Woolworths Group and its management, are intended to identify forward-looking statements. Forward looking statements involve known and unknown risks, uncertainties and assumptions and other important factors that could cause the actual results, performances or achievements of Woolworths Group to be materially different from future results, performances or achievements expressed or implied by such statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. 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