Investor Presentaiton

30 30 Business review Woolworths Sales $48,047M ▲ 5.0% from F22 Bobby 9 Australian Food urs EBIT $2,865M ▲ 19.1% from F22 The performance of Australian Food in F23 reflects a return to a more normal post-COVID operating environment and improving stability across our supply chain. ROFE 29.0% ▲ 4.1 pts from F22 Trading performance Australian Food sales increased 5.0% in F23 to $48.0 billion (4-yr CAGR: 5.8%) driven by an increase in Woolworths Food Retail sales of 4.8% (4-yr CAGR: 5.7%), with H2 growth reflecting inflation, items returning to modest growth from Q3, and eCom sales growth. WooliesX sales increased 3.9% with Direct to boot and Same Day propositions driving online growth. Accelerators revenue grew 236.5% compared to the prior year largely reflecting the growth in sub-60 minute delivery. Gross margin (%) increased 76 bps to 28.1% (H1: +78 bps; H2: +73 bps). Excluding COVID costs in the prior year, gross margin increased 54 bps (H1: +51 bps; H2: +55 bps). Growth was driven by category mix benefits, including a 16% decline in Tobacco sales which contributed 16 bps to the increase; improved promotional effectiveness supported by the Next Gen Promotions decision tool; and growth from Cartology and Shopper Media. This was partly offset by stockloss driven by higher rates of theft and increased Everyday Rewards investment. To address rising stockloss, Scan Assist, technology to support accurate scanning, has been rolled out to 474 supermarkets by the end of the year. CODB (%) increased 6 bps to 22.1%. Excluding direct COVID costs incurred in the prior year, CODB increased 29 bps (H1: +43 bps; H2: +15 bps). H2 CODB % (excluding COVID costs) reflects a return to a more consistent operating rhythm, improved unit-based productivity combined with the benefit of higher sales growth. This was offset by inflation in team wages, depreciation and amortisation, energy prices as well as business growth initiatives. Depreciation and amortisation increased 9.0% driven by new stores, renewals, supply chain and shorter-life digital investments. F23 EBIT increased 19.1% to $2.9 billion (4-yr CAGR: 8.4%). Excluding direct COVID costs incurred in the prior year of $211 million, EBIT increased 9.5%. Funds employed decreased 4.6% compared to F22 largely due to an increase in trade payables driven by inflation, offset by investment in new stores, renewals, eCom, supply chain and Shopper Media. ROFE increased by 4.1 pts to 29.0% reflecting the EBIT increase. 125 SAL OPCOR Ne HUR GHURT Potato &leek SOUD Pea & Chicken) Pumpkin Soup ham à com soup soup 31 Annual Report 2023 Woolworths Group 1 highlights Performance 2 Business review 3 $ MILLION F23 F221 CHANGE Total sales EBITDA 48,047 4,651 45,740 5.0% 4,044 15.0% Depreciation and amortisation EBIT (1,786) 2,865 (1,638) 9.0% 2,406 19.1% EBIT excluding direct COVID costs 2,865 2,617 Gross margin (%) 28.1 27.4 9.5% 76 bps CODB (%) 22.1 22.1 6 bps EBIT to sales (%) 6.0 Funds employed 9,647 5.3 10,117 70 bps (4.6)% ROFE (%) 29.0 24.9 4.1 pts Scope 1 & 2 emissions (tonnes) 2 1,546,804 1,687,757 (8.4)% 1 2 Prior period restated to reflect Woolworths at Work. 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. Continuing to strengthen our own brand range Throughout the year, Woolworths Food Company (WFC) continued to evolve and differentiate its portfolio to provide customers with great value through affordable, quality products. WFC is organised into three key portfolios with quality and value at the centre of product innovation. These portfolios include, Woolworths Fresh Solutions (fresh brands such as COOK, BBQ, Thomas Dux), Woolworths Food & Exclusive Brands (long life and grocery brands), and Macro Wholefoods (health brand). In F23, WFC launched 1,500 products that were redesigned, reformulated or new to the market and was ranked Australia's healthiest own brand for the fourth consecutive year. As customers continue to be impacted by cost-of-living pressures, more customers are turning to own brand products to improve the value of their basket, with Pantry, Drinks and Baby products showing strong growth in F23. Directors' Report 4 Report Financial LO information Other

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