Investor Presentaiton

80 Remuneration Report 1.3 Link between performance and remuneration received Group five-year performance summary The remuneration outcomes for our executive KMP are aligned to short-term and long-term performance outcomes. The graphs and table below show executive KMP remuneration outcomes and the Group's core financial performance measures over the past five years. Short-term measures Long-term measures 2 Executive KMP remuneration 2.1 Short-term incentive 81 Annual Report 2023 Woolworths Group Sales $M 49,723 53,080 55,733 60,849 64,294 10,261 10,595 11,584 EBIT 1 $M 1,957 765 734 668 2,764 F: 19 20 21 22 23 Woolworths Group F: 19 20 21 22 23 (continuing operations) and Hotels Endeavour Drinks STI and LTI outcomes STI (% of Maximum) STI (% of Target) LTI (% of Maximum) Annual TSR2 ROFE 3 % Group % Group 14.9 12.7 23.2 -2.3 14.7 F: 19 20 21 22 23 23 14.1 13.7 15.4 13.7 14.9 F: 19 20 21 22 23 Sales/sqm $ 17,190 17,935 18,158 18,391 18,921 F: 19 20 21 22 23 Sales/sqm (Australian Food) F19 45.4 F20 46.74 F21 F22 68.1 70.04 77.0 115.5 78.4 64.3 77.5 Woolworths Group ordinary share price closing ($)7 28.15 30.83 36.78 46.75 70.05 66.7 35.46 F23 53.26 79.86 49.9 39.86 Woolworths Group dividend (cents per share) 8 102 94 108 92 104 1 EBIT from continuing operations before significant items. For F23, significant items from continuing operations was a net loss before tax of $117 million. Details of significant items are included in the 2023 Financial Report. 2 Annual TSR is point to point TSR for the financial year. For F21, annual TSR includes the value of Endeavour Group shares distributed on demerger. 3 ROFE is defined on page 83. 4 The F20 STI scorecard outcome of 104% of Target was capped at 70% of Target (or 46.7% of Maximum) for the Group Executive Committee. Mr Banducci waived his F20 STI. 5 Adjusted scorecard outcome. The F22 STI scorecard was adjusted after the Board exercised its discretion to set the Working Capital Days metric to Entry. 6 Adjusted scorecard outcome. Further details relating to the adjustment are outlined on page 82. 7 Closing Woolworths Group share price on the last trading day of Woolworths Group's financial year, adjusted to exclude Endeavour Group. Source: FactSet. 8 Interim and final dividends paid in relation to the financial year. F23 executive KMP remuneration received The table below presents the remuneration actually paid during, or vesting at the conclusion of F23, for executive KMP. This differs from the executive KMP statutory disclosures on page 95, which presents remuneration in accordance with statutory obligations and accounting standards. Total remuneration received was higher in F23 than in F22 primarily due tocomparatively higher vested DSTI from F21 for all executive KMP. No vested DSTI was reported in F22 for Mr Banducci ashe waived his F20 STI. EXECUTIVE KMP Brad Banducci TOTAL FIXED REMUNERATION OTHER F23 VESTED F21 VESTED BENEFITS 1 CASH STI $ $ DSTI2 $ F21-23 LTI 2 $ TOTAL $ $ Managing Director & CEO 2,600,000 3,905 1,193,010 1,837,569 3,011,418 8,645,902 Amanda Bardwell Managing Director, WooliesX 1,056,666 3,905 471,818 665,984 1,013,385 3,211,758 Natalie Davis Managing Director, Woolworths Supermarkets 1,056,666 3,905 471,818 604,931 1,009,927 3,147,247 Stephen Harrison Chief Financial Officer 970,833 3,905 393,015 578,220 1,042,362 2,988,335 1 Other benefits represents the deemed premium in respect of Directors' and Officers' Indemnity insurance. 2 Vested F21 Deferred STI and vested F21-23 LTI is based on the five-day volume weighted average price (VWAP) of Woolworths Group shares up to and including 1 July 2023 ($39.7484). Our approach and rationale: F23 short-term incentive We believe that alignment of our STI arrangements from the CEO through to our store teams is an important recognition of the shared accountability for performance at Woolworths Group. Individual STI outcomes reflect business performance against the STI scorecard, individual contribution to these results, ways of working and core values. The Board also reviews executive behaviour and any malus policy considerations when determining STI outcomes for executive KMP. All measures and targets are reviewed annually so that STI drives the right outcomes each year. 1 highlights Performance Assessing business performance: The STI balanced scorecard includes a mix of metrics, with 60% weighting on financial metrics and 40% weighting on non-financial metrics. Five equally weighted business scorecard measures drive outcomes for shareholders, customers and our team: Sales EBIT¹ ■Working Capital Days Customer Satisfaction ■Safety Sales, EBIT' and Working Capital Days It is critical for the sustainability of our business to constantly work towards improving all elements of our financial performance, including the productivity of store selling space, the efficiency of our stores, supply chain and overall management of costs and the effective management of working capital, including inventory. Sales, EBIT ¹ and Working Capital Days performance are all key financial performance metrics used to measure the value creation for our shareholders. 1 Before significant items. Customer Satisfaction Our strategy is underpinned by customer experiences and success is dependent on delivering convenient ways to shop and competitive prices for customers so they continue to choose us over our competitors. Our online platforms are key to delivering new and improved ways customers can shop with us. Customer feedback is measured using Voice of Customer Net Promoter Score (VOC NPS), based on 12-month rolling average outcomes. Outcomes are weighted 30% to eCommerce customers and 70% to in-store customers. Scores reflect outcomes across the Group, weighted 75% to Australian Food, 15% to New Zealand Food and 10% to BIG W. Safety We are a people business and the safety of our team and customers is of great importance. Safety performance is measured by the Severity Rate, which is a blended measure that includes all team and customer injuries/ illnesses and their severity. The higher the severity of an incident (actual or potential), the higher its severity score. The total of all severity scores is then divided by the event count to determine the Severity Rate. Assessing individual performance: Two equally-weighted categories of goals are used to review performance: business strategy and performance goals that capture individual contributions to performance during the year ways of working and people goals that capture how leaders have delivered goals and set their teams up for success. The Board also has discretion to adjust STI or deferred STI (DSTI) for individuals (see malus policy outlined in Section 3.4). Executive KMP STI outcomes: Depending on performance: zero for below Entry performance 50% of Target for Entry performance 100% of Target for Target performance 150% of Target for Stretch performance. The Board has discretion to vary STI outcomes beyond these performance measures so that rewards appropriately reflect complete performance. In F23, the Board exercised this discretion (see page 82 for further details). TFR Target STI STI Scorecard Individual Modifier = STI Outcome Delivering STI outcomes: Executive KMP STI awards are delivered: 50% as cash 50% deferred as share rights for two years. 2 Business review 3 Directors' Report 4 Financial LO Report information Other