Investor Presentaiton

126 Notes to the Consolidated Financial Statements 3.6 Property, plant and equipment (continued) 3.7 Commitments for capital expenditure Assets and liabilities 3 127 Annual Report 2023 Woolworths Group Significant Accounting Policies Carrying value The Group's property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. The cost of self-constructed assets includes the cost of materials, direct labour, and a proportion of overheads. The cost of development properties includes borrowing, holding, and development costs until the asset is complete. Depreciation Freehold land and development properties are not depreciated, while leasehold improvements are depreciated on a straight-line basis primarily over the shorter of the respective remaining lease term and the estimated useful life of the underlying lease asset. All other property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives to their residual values. Useful lives and residual values are reassessed at each reporting period following the Group's consideration of physical, economic and environmental factors, which includes, but is not limited to, asset condition, expected use, wear-and-tear, technology changes, and climate-related risks. Any changes to the estimate are accounted for on a prospective basis and where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate assets. The useful lives of the Group's property, plant and equipment are as follows: Buildings Plant and equipment Leasehold improvements Disposal of assets 25-40 years 2.5-20 years Up to 25 years An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal or retirement of the asset is determined as the difference between the sale proceeds and the carrying amount of the asset, and is recognised in the Consolidated Statement of Profit or Loss. Impairment Property, plant and equipment are tested for impairment in accordance with the policy for impairment of non-financial assets as disclosed in Note 3.10. Financial reporting impacts of sustainability-related matters The Group has identified climate-related physical risks to its assets and is currently working through actions to address these risks, including improving the resilience of its assets through the implementation of generators for areas exposed to a high risk of power outages, flood barriers, rainwater harvesting, and roof strengthening. Useful lives During the period, there were no changes to the useful lives of property, plant and equipment as a result of climate-related risks. If in future reporting periods there are changes to the proposed useful lives and/or residual values due to climate-related risks, these changes will be accounted for on a prospective basis. This section presents the Group's contractual obligation to make a payment in the future in relation to purchases of property, plant and equipment and intangible assets. Capital expenditure commitments of the Group at the reporting date are as follows: Estimated capital expenditure under firm contracts, payable: Not later than one year Later than one year, not later than two years Later than two years, not later than five years Total capital expenditure commitments 3.8 Intangible assets 2023 2022 $M $M 914 155 1,246 368 159 1,069 1,773 1 highlights Performance 2 Business review Intangible assets mainly represent goodwill, brand names, software, and customer contracts and relationships. 3 Directors' Report CUSTOMER CONTRACTS GOODWILL BRAND NAMES AND SOFTWARE¹ RELATIONSHIPS 2023 $M $M $M $M OTHER $M TOTAL $M Cost 3,581 322 3,515 265 132 7,815 Less: accumulated amortisation and impairment (77) (3) (1,961) (54) (27) Carrying amount at end of period 3,504 319 1,554 211 105 (2,122) 5,693 Movement: Carrying amount at start of period 3,198 305 1,484 224 Acquisition of businesses² 297 14 31 10 1 199 67 54 5,278 406 4 Additions 3 516 5 524 Disposals (11) (11) Transfers (1) (20) (21) Amortisation expense Impairment expense Effect of movements in foreign exchange rates Carrying amount at end of period 10 3,504 319 2 12 1,554 211 105 5,693 1 Carrying amount at the end of the period for software includes assets under development of $507 million. 2 Acquisition of businesses comprises $391 million of intangible assets relating to the acquisition of Shopper and MyDeal and $15 million relating to other individually immaterial acquisitions. (3) (443) (28) (15) (489) (5) (1) (6) Financial Other Report LO information

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