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Investor Presentaiton

22 22 Group financial performance F23 marked a return to relative stability after several years of material COVID-related disruption, with an improved financial performance driven by the non-recurrence of direct COVID costs, elevated inflation and the benefits of ongoing investment. Group sales $64.3B ▲ 5.7% from F22 The increase in Group sales in F23 was driven by sales growth across all segments. Group eCommerce sales $6,592M ▲ 0.8% from F22 Group eCommerce sales in F23 increased by 0.8% with a strong recovery in H2, growing by 11.1%. eCommerce penetration for the year was 11.0%. F23 sales summary $ MILLION Australian Food Australian B2B2 New Zealand Food (AUD) New Zealand Food (NZD) BIG W Other 2,3 Total Group 23 Annual Report 2023 Woolworths Group CHANGE 1 F23 F221 48,047 45,740 5.0% 4,324 3,684 17.4% 7,240 7,092 2.1% 7,912 7,563 4.6% 4,785 4,431 8.0% (102) (98) 4.4% 64,294 60,849 5.7% highlights Performance 2 F23 F221 CHANGE Total Group eCommerce sales 6,592 6,542 0.8% eCommerce sales penetration (%) 4 11.0% 11.4% (46) bps Average weekly traffic to Group digital platforms (million) 5 23.0 19.8 16.3% F23 EBIT summary Gross margin as a % of sales 26.8% ▲ 51 bps from F22 The gross margin (%) increase was driven by Australian Food where the absence of COVID costs across the supply chain, mix and growth in new businesses more than offset an increase in stockloss. Cost of doing business as a % of sales 21.9% ▲ 8 bps from F22 Cost of doing business (%) increased marginally with higher costs primarily driven by wage and other cost inflation being somewhat offset by the absence of COVID costs, improved productivity, and sales growth. $MILLION Before significant items Australian Food Australian B2B New Zealand Food (AUD) New Zealand Food (NZD) BIG W Other 3 Group EBIT before significant items Significant items Group EBIT Business review 2,865 63 2,406 56 19.1% 13.0% 3 228 296 (22.9)% 249 316 (21.0)% 145 55 165.3% (185) (123) 51.7% Directors' Report 3,116 2,690 (117) 6,388 15.8% n.m. 2,999 9,078 (67.0)% Other LO information Group EBIT $3,116M ▲ 15.8% from F22 Strong EBIT growth in Australian Food, Australian B2B and BIG W in F23 was partly offset by lower EBIT from New Zealand Food and higher net costs in the Other segment. Finance costs $677M ▲ 12.7% from F22 Finance costs increased in F23 largely due to the impact of higher interest rates on bank debt and higher average net debt during the year. 1 F22 restated to include Woolworths at Work as part of Australian Food. 2 Revenue from the sales of goods and services in Australian B2B includes $351 million (2022: $302 million) of freight revenue. However, at a Group level, this is reclassified and recognised as a reduction in cost of sales. As a result, $351 million (2022: $302 million) reduction has been recognised in Other. This has not resulted in a change to earnings before interest and tax at a Group level. 3 Other comprises Quantium and MyDeal (which are not considered separately reportable segments), as well as various support functions, including property and Group and overhead costs, the Group's share of profit or loss of investments accounted for using the equity method (including Endeavour Group), and consolidation and elimination journals. 4 Group eCommerce penetration is calculated based on Australian Food, New Zealand Food, BIG W and MyDeal sales only. F22 restated to include Woolworths at Work as part of Australian Food. 5 F22 digital traffic has been restated to include Woolworths Mobile, Healthylife, gift cards, B2B and PetCulture digital platforms. F23 includes MyDeal. Note: all references to sales, EBITDA and EBIT are from continuing operations before significant items, unless stated otherwise. 4 Report Financial Final dividend per share 58¢ ▲ 9.4% from F22 Fully franked final dividend of 58 cents per share, an increase of 9.4% reflecting profit growth during the year. NPAT from continuing operations attributable to equity holders of the parent entity after significant items $1,618M ▲ 4.6% from F22 NPAT from continuing operations attributable to equity holders of the parent entity after significant items increased by 4.6% in F23.
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