Investor Presentaiton

140 Notes to the Consolidated Financial Statements 3.13 Provisions (continued) 3.13 Provisions (continued) Assets and liabilities 3 141 Annual Report 2023 Woolworths Group Of this provision, $61 million has been recognised as a significant item as it relates to prior periods (refer to Note 2.2.3 for further details). The provision as at 25 June 2023 relating to team member pay remediation to settle any remaining obligations for hourly paid team members is $187 million. To date, payments of $99 million have been made to impacted hourly paid team members. 3.13.2 Movements in total self-insured risks, restructuring, onerous contracts, and other provisions SELF-INSURED RISKS RESTRUCTURING, ONEROUS CONTRACTS, AND OTHER 2023 2022 $M $M 2023 $M 2022 $M Movement: Balance at start of period Net provisions recognised Cash payments Other Balance at end of period Current Non-current Balance at end of period Significant Accounting Policies 628 591 332 395 178 160 26 (31) (141) (137) (30) (29) (2) 14 (10) (3) 663 628 318 332 193 177 61 58 470 451 257 274 663 628 318 332 A provision is recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made as to the amount of the obligation. The amount recognised is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. Employee benefits The provision for employee benefits comprises a liability for benefits accruing to employees in respect of annual leave and long service leave and also includes any liability for the Group's team member pay remediation. Liabilities expected to be settled within 12 months are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Liabilities which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the Group in respect of services provided by employees up to the reporting date. Self-insurance The provision for self-insured risks primarily represents the estimated liability for workers' compensation and public liability claims. Restructuring A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring either has commenced or has been publicly announced. Onerous contracts An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net costs of exiting from the contract, which is the lower of the cost of fulfilling the contract, and any compensation or penalties arising from failure to fulfil the contract. Critical accounting estimates The estimates and judgements applied in determining the Group's provisions involve a high degree of complexity and have a risk of causing a material adjustment in subsequent periods. Any changes to the provision as a result of new information will be treated as a change in accounting estimate and will be recognised in the Consolidated Statement of Profit or Loss in the period in which the new information is available. Discount rates Where a provision is measured using the cash flows estimated to settle the obligation, with the exception of employee benefits, the cash flows are discounted using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Employee benefits are discounted with reference to market yields at the end of the reporting period on high quality corporate bonds. Rates are reviewed periodically, and given the nature of the estimate, reasonably possible changes are not considered likely to have a material impact. Other accounting estimates Employee benefits In estimating the value of employee benefits, consideration is given to expected future salary and wage levels (including on-cost rates), experience of employee departures, and periods of service. The assumptions are reviewed periodically and, given the nature of the estimate, reasonably possible changes in assumptions are not considered likely to have a material impact. Included in employee benefits are the team member remediation provisions which represent the Group's best estimate of the expenditure required to settle the obligations in accordance with the relevant EAs and GRIA. Self-insured risks Self-insurance provisions are determined based on independent actuarial assessments, which consider numbers, amounts, and duration of claims and allow for future inflation and investment returns. Allowance is included for injuries which occurred before the reporting date, but where the claim is expected to be notified after the reporting date. The assumptions are reviewed periodically, and given the nature of the estimate, reasonably possible changes in assumptions are not considered likely to have a material impact. Restructuring and onerous contracts Restructuring provisions are recognised based on the direct expenditures arising from the restructuring, which are those amounts that are both necessarily entailed by the restructuring and not associated with the ongoing activities of the Group. Provisions for onerous contracts are recognised based on the lower of the estimated unavoidable net costs of meeting all lease and other obligations under the store and associated contracts, and the Group's best estimate of the compensation expected to be payable to landlords and other third parties as a result of early termination of contracts. Estimates differ depending on the rent, location, lease exit terms, and the Group's assessment of the timing and likely termination costs. Financial reporting impacts of sustainability-related matters The impact from flooding during the period has not had a material impact on the Group's Consolidated Financial Position as it is insured against any damages to its inventories and property, plant, and equipment. The impacts of acute weather events, such as flooding, on physical assets and subsequent business interruptions includes, but is not limited to, an increase in the Group's cost of insurable risks primarily due to higher premiums, higher deductibles and policy exclusions. 1 highlights Performance 2 review Business 3 Directors' Report 4 Report Financial Other information

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