Investor Presentaiton
WHL
FINANCIAL OVERVIEW
COMMENTARY
SUMMARY OF THE
AUDITED GROUP RESULTS
DIRECTORATE &
STATUTORY INFORMATION
NOTES TO THE CONDENSED CONSOLIDATED RESULTS
(CONTINUED)
10. FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying value of trade and other receivables, trade and other payables and borrowings approximate their fair values.
In terms of IFRS 9 Financial Instruments, the Group's derivative financial instruments are measured at fair value. The derivative
financial instruments are determined to be Level 2 instruments under the fair value hierarchy as per IFRS 13 Fair value
measurement. Derivatives are valued using valuation techniques with market observable inputs, with derivatives being mainly
in respect of interest rate swaps and foreign exchange forward contracts. The most frequently applied valuation techniques
include forward pricing and swap models, using present value calculations. The models incorporate various inputs, including
the credit quality of counterparties, foreign exchange spot and forward rates, interest rate curves and forward rate curves
of the underlying index.
11. LEASE EXIT AND MODIFICATIONS GAINS
During the year, the Group renegotiated various leases with landlords, particularly within the David Jones segment, related
mainly to reduction in lease terms and store closures. As a result, right-of-use assets and lease liabilities were modified
by R1.7 billion (2021: R1.5 billion) and R1.3 billion (2021: R2.3 billion), respectively, with lease exit and modifications gains
of R259 million (pre-tax) (2021: R591 million) recognised in profit or loss.
12. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
The Group has contractually committed to acquire a property in South Africa that will be used as a distribution centre,
subject to fulfilment of certain conditions, at a cost of R195 million.
Group companies are party to legal disputes and investigations that have arisen in the ordinary course of business. Whilst
the outcome of these matters cannot readily be foreseen, they are not expected to have any material financial effect.
13. BORROWING FACILITIES
Unutilised banking and debt facilities amount to R7 888 million (2021: R7 402 million) as follows:
2022
2021
Rm
Rm
7 730
7 285
158
117
7 888
7 402
Committed
Uncommitted
Total
Notes to the value of R2.7 billion (2021: R3.3 billion) are outstanding under the South African Domestic Medium Term
Note (DMTN) programme, which is a further source of funding to the Group. The DMTN programme is guaranteed
by Woolworths Proprietary Limited and will be used to raise debt on an ongoing basis.
Debt facilities of A$74.0 million (2021: A$93.0 million) for Country Road Group (CRG) are secured by Real Property
Mortgages and a General Security Deed over the assets of CRG. At 26 June 2022, the facilities are undrawn.
A rental bank guarantee of A$25.5 million is in place at 26 June 2022 in David Jones. This facility is secured
by Property Mortgages.
14. RELATED-PARTY TRANSACTIONS
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The Group entered into related-party transactions, the substance of which is disclosed in the Group's 2022 Annual
Financial Statements. Intragroup adjustments relate to the sale of concession goods between segments and supply
chain distribution adjustments.
15. EVENTS SUBSEQUENT TO THE REPORTING DATE
Subsequent to year-end, the Group concluded the Board-approved R1.5 billion share repurchase by purchasing and
cancelling 10 813 149 ordinary shares totalling R597 million. In addition, 2 550 000 ordinary shares totalling R145 million,
which were repurchased before year-end, were cancelled after year-end.
On 30 August 2022, the Board declared a gross cash dividend of 149.0 cents (119.2 cents net of dividend withholding
tax) (2021: 66.0 cents) for the 52 weeks ended 26 June 2022 to ordinary shareholders recorded at close of business
on Friday, 16 September 2022, to be paid on Monday, 19 September 2022.
16. APPROVAL OF THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The condensed consolidated financial statements were approved by the Board of Directors on 30 August 2022.
17. AUDIT OPINION
The condensed consolidated financial statements have been extracted from the audited Group Annual Financial
Statements, but is not in itself audited. The Group Annual Financial Statements were audited by KPMG Inc., who
expressed an unmodified opinion thereon. The audited Group Annual Financial Statements and the auditor's report
thereon are available for inspection at the Company's registered office. The directors take full responsibility for
the preparation of the summarised report and that the financial information has been correctly extracted from
the underlying Group Annual Financial Statements.
However, the auditor's report does not necessarily report on all the information contained in this announcement.
Shareholders are therefore advised that, in order to obtain a full understanding of the nature of the auditor's
engagement, they should obtain a copy of the auditor's report, together with the accompanying financial
information from the Company's registered office.
WHL 24/2022
WHL 25/2022
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