COMPANY RESULTS

HALF YEAR ENDED

PRESENTATION OUTLINE
Presenter
GrantO'Brien TjeerdJegen BradBanducci DaveChambers KarenBozic MattTyson DavidMarr GrantO'Brien

Item
GroupPerformanceandStrategicPriorities AustralianSupermarketsandPetrol WoolworthsLiquorGroup NewZealandSupermarkets GeneralMerchandise HomeImprovement GroupFinancialPerformance Outlook

Results half year 2014

ContinuingOperations BeforeSignificantItems1
$31.8b $2,048.0m $1,321.7m 106.1 6.0% 5.9% 6.0% 4.9%

TotalGroup
Sales EBIT NPAT EPS DPS ROFE $31.8b $2,048.0m $1,321.7m 106.1 65 3.8% 11.3% 14.5% 13.4% 4.8%

14.9%

87bps2

1.TherewerenosignificantitemsinHY14.SignificantitemsinHY13included OneofflossontheSCAPropertyGrouptransactionof$32.8m(beforetax)and$28.5m(aftertax) NetlossondisposalofConsumerElectronicsbusinessesof$63.7m(beforetax)and$65.7m(aftertax) 2.ExcludingtheimpactofdifferencesinthetimingofcreditorpaymentsrelativetothereportingdatesandthecontinuinginvestmentinourHomeImprovementbusiness,ROFEincreased33bps

Group EBIT from continuing operations before significant items up 5.9%

$million
AustralianFoodandLiquor Petrol AustralianFood,LiquorandPetrol NewZealandSupermarkets(NZD) NewZealandSupermarkets GeneralMerchandise Hotels Masters HomeTimberandHardware HomeImprovement CentralOverheads GroupEBIT ContinuingOperations ConsumerElectronics Australia,NewZealandandIndia GroupEBIT DiscontinuedOperations TotalGroupEBIT(beforesignificantitems) SignificantItems(beforetax) OneofflossonSCAPropertyGrouptransaction NetlossondisposalofConsumerElectronicsbusinesses TotalGroupEBIT(aftersignificantitems) (32.8) (63.7)1 1,840.7 2,048.0 n.c n.c 11.3%

HY13
1,583.9 71.0 1,654.9 162.3 124.7 129.5 140.8 (69.1) 10.6 (58.5) (56.7) 1,934.7 2.5 2.5 1,937.2

HY14
1,692.1 74.0 1,766.1 164.4 136.8 120.5 163.9 (71.9) 7.5 (64.4) (74.9) 2,048.0 2,048.0

Change
6.8% 4.2% 6.7% 1.3% 9.7% (6.9)% 16.4% 4.1% (29.2)% 10.1% 32.1% 5.9% n.c2 n.c2 5.7%

1.AfterreflectingadditionalsaleproceedsinthesecondhalfofFY13,thenetgainondisposaloftheConsumerElectronicsbusinessesinFY13was$9.9m(beforetax) 2.NotcomparablegiventhesaleofthesebusinessesduringHY13

Extend leadership in Food and Liquor Act on our portfolio to maximise shareholder value

Maintain our track record of building new growth businesses

Put in place the enablers for a new era of growth

Extend Leadership in Food and Liquor

Well Underway
Momentum in Food and Liquor
Improvingcomparable salesperformanceand EBITgrowth Increasedmarket shareunderpinnedby strongvolume, customernumbers andspacegrowth Weattracted3.9% morecustomersthan theprioryear,serving onaverage21m customersperweek

Unbeatable Value

FIRST CHOICE FOR FRESH FOOD

Leading Liquor Destination, In-store and Online

IMPROVING New Zealand Comparable Sales Growth

Improved Freshmarketshare Increasedaccessto Earlystagesof communicationofour growingfasterthan ourmarketleading transformingour valuecredentials Grocery bricks&mortaroffer Countdownbusiness MoreSavingsEvery NewJamieOliver Deliveredbest Q2resultthestrongest Daydeliveredsavings partnershipfocusing practiceportfolioof comparablesales tocustomersofover onaffordablefresh segmentedonline growthrecordedin18 $400m food offers months Reinforcingprice Stronggrowthin Pinnacledelivering Underpinnedby leadershipamongfull organicandfreerange highquality,exclusive successfulpromotions, rangesupermarkets meatandpoultry productranges strongFreshgrowth, Averagepricedeflation newoffersandOnline of4.1%forthehalf year

More To Do
NewrangeoffreshfoodinitiativestoemphasiseourFreshleadership Embedourpriceleadershipthroughthe'MoreSavingsEveryDayvehicle Maximiseouruseofdatatoattractandrewardcustomers ExtendourleadershipinmultioptionFoodandLiquorthroughinnovationandstandoutexecution ContinuetoreducepricesinNewZealandforthebenefitofourcustomers

Act on our portfolio to maximise shareholder value

Well Underway
BIG W BUSINESS TRANSFORMATION
Commencedthetransformationof ourcustomeroffer Reprioritisingcategoriesofgreatest importancetocustomers,impacting salesandprofitintheshortterm butdeliveringprofitablegrowth overthemediumtolongterm Enhancingreplenishmentsystems andsupplychaincapabilities AmbitiontobecomeAustralasia's leadingmultioptiondiscretionary retailer

Australia's Best and Most Responsible Hotels

Industryleadinghotelandgaming charterreinforcingourcommitment toresponsibleserviceofgaming andliquor Commencementofgamingmachine voluntaryprecommitment functionalityrollout Maximisingperformanceofthe hotelsacquiredthroughtheLaundy transaction

ENHANCING OUR PETROL OFFER

Expandingavailabilityofdiesel, premiumfuelsandfastflowpumps Maximisingourmerchandiseoffer (nonfuel)throughnewand expandedranges

More To Do
GeneralMerchandise RolloutnextwaveofspaceandlayoutreconfigurationacrosstheBIGWstorenetwork Developandimplementnewsupplychainandreplenishmentsystemstotransformourspeedandefficiencytomarket LeverageEziBuytodrivemultioptionambitions Hotels Furtherdevelopmentofourbar,foodandentertainmentoffer Implementvoluntaryprecommitmentfunctionalitypriortolegislativerequirements FurthertargetedhotelacquisitionstoprovideapipelineforDanMurphysandBWSstoreopenings
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Maintain our track record of building new growth businesses

Well Underway
Growing our Leadership as Australasia's Largest Domestic Online Retailer
Onlinesalesexceeded$1bforthe2013calendaryear, aheadofourFY14target MarketleadingonlinefoodoffersinAustraliaandNew Zealand Onlinesalesfromcontinuingoperationsincreasedby 40%duringthehalf Liquoristhemostdevelopedexampleofourmulti optionambitions Transactionalmobilesitesinplaceforallofourbrands

Australia's FASTEST GROWING Home Improvement offer

38Mastersstorestradingattheendofthehalf Ontracktohave49storestradingbyyearend RefreshedHomeTimberandHardwarecompanystores deliveringpleasingsalesgrowth HomeTimberandHardwarewasrecentlyawarded HardwareStoreoftheYearattheRoyMorgan CustomerSatisfactionAwards MattTysonappointedasManagingDirector,Home Improvementbringingextensiveinternationaland businessdevelopmentexperience

More To Do
Platformandoperationalenhancementstodriveanincreaseinonlinetraffic CompletingrapidrolloutofClick&Collectinalldivisions Continueourconsiderationofdomesticandinternationalgrowthopportunities DriveLearnandImproveapproachinMastersstores ContinuerecruitmentofimportantHomeTimberandHardwarecustomers

Put in place the enablers for a new era of growth

Well Underway
BUILDING ON OUR WORLD CLASS SUPPLY CHAIN
Detailedplanninghas commencedforournext generationsupplychain capability Newsystemsandprocesses maximisingonshelf availabilitywhilstoptimising stocklevels

DRIVING EFFICIENCIES IN STORES

Deliveringonourcostout ambitionsacrossour businesses OurpermanentOperations Developmentteamcontinue todrivebenefitsin Supermarkets,whichare thenleveragedacrossthe restoftheGroup

CUSTOMER INSIGHTS TRANSFORMING OUR BUSINESS

EverydayRewardsloyalty membershipupto7.5mand Onecardmembersupto 1.8m WeareleveragingQuantium tobetterunderstandour customersneedsin Pricingandpromotion Ranging Storelayout Weareworkingcloselywith supplierstodevelopjoint longtermcategoryplans usinginsights

ASSEMBLING A WORLD CLASS RETAIL TEAM

Continuedfocusonblending thebestlocaland internationaltalentatalllevels oftheorganisation Wehavemadeanumberof seniorappointmentsacross thebusinessincluding MattTyson,MDHome Improvement CliveWhincup,CIO JamesAylen,GMHome TimberandHardware MartynRoberts,GMPetrol

More To Do
Movetoanewphaseofbusinesstransformationthroughourendtoendsupplychainandreplenishmentprojects Continuetoleveragecustomerdatatodrivesalesgrowthandloyaltyacrossthebusiness Productivityimprovementprogramstocontinuerelentlessfocusoncosts Continuetomakenewappointmentstocomplementourteam,sourcedinternally,domesticallyandinternationallyasappropriate

AUSTRALIAN Supermarkets
Tjeerd Jegen Managing Director Australian Supermarkets & Petrol

Australian Food, Liquor & Petrol

Increasing momentum in sales and profit
Trading Performance
HY13
Sales Food&Liquor($m) Petrol($m) Total($m) EBIT Food&Liquor($m) Petrol($m) Total($m) FundsEmployed($m) 20,488 3,393 23,881

HY14
21,477 3,665 25,142

Change
4.8% 8.0% 5.3% 6.8% 4.2% 6.7% 4.6%

1,583.9 1,692.1 71.0 74.0

1,654.9 1,766.1 4,122.0 4,312.8

Grossmargin(%) CODB(%) EBITtosales(%) ROFE(%)

25.14 18.21 6.93 40.65

25.17 18.15 7.02 40.89

3bps (6)bps 9bps 24bps

Food&LiquorHY14comparablesalesgrowthwas 3.0%withincreasedmomentuminQ2delivering comparablesalesgrowthof3.4% SuccessfulChristmastradingperioddrivenbyour leadingpositionsinpriceandrange Increasesinmarketshare,customernumbers, basketsize,itemssoldandsalespersquaremetre Continuedtodeliverexceptionalvalue with averagepricedeflationof4.1%forthehalfyear (includingtheeffectsofpromotionsandvolumes) Grossmargin increasereflectsimprovementsin buying,moreeffectivepromotionsandgrowthin ourexclusivebrands,includingLiquor.Muchofthe benefitfromtheseinitiativeswasreinvestedinto price Food&Liquor(excludingPetrol)CODB%wasflat agoodresultgiventhelargenumberofnewstores yettoreachmaturetradinglevelsandongoing investmentinourmultioptionbusiness 23AustralianSupermarkets(net)openedduring thehalfyear,bringingthetotalto920,employing anadditional2,000people.13refurbishments completed

10

Progress against objectives

Extending our Fresh food leadership
1. Firstchoiceforfreshfood Continuedtoimprovethequalityofour Freshoffer,withenhancementstoour supplychain Inlinewithourstrategytobefirstchoice forfreshfood,ourFreshmarketshareis growingfasterthanGrocery JamieOliverpartnershipfocusingon affordablefreshfoodandencouraginga healthierAustralia Sushibarsandbakeriesrolloutcontinued withafurther40sushibarsand49bakeries addedtoourstorenetwork.Wenowhave bakeriesin86%ofourstores Customerscontinuetoaskformoreorganic andfreerangemeatandpoultry,leadingto stronggrowthinthesecategories

11

Progress against objectives

Reinforcing our price leadership

2. Unbeatablevalue

Improvedthecommunicationofour valuecredentialsthrough'More SavingsEveryDay' Asourkeyvalueplatform,'More SavingsEveryDay'deliveredsavingsof $400m+tocustomersoverthehalf, through3clearandsimpleways Reinforcedourpriceleadershipamong fullrangesupermarketswithdeflation inaveragepricesof4.1%forthehalf Ourdrivetoofferaffordablefreshfood continuedwithfurtherpricereductions inmeat

12

Progress against objectives

Customer insights at the heart of our planning

3. Customerinsightstransforming ourbusiness IncreaseinEverydayRewardsmembers to7.5m(up11%onHY13)withstrong growthincardscanrates TogetherwithQuantium,weare workingcloselywithsuppliersto leverageourEverydayRewardsdatato deliverinsightsandbetterdecisions acrosspricing,ranging,promotionsand storelayout Wearesendinganaverageof2.2m emailsanddirectmailstocustomers eachweekwithtargetedSupermarket offers

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Progress against objectives

Complementing our existing core offer across the store

4. Innovativenewoffers Apermanent'Gold'rangenowlaunched settinganewhighstandardforownbrand productsinquality,innovationandtaste Rolloutofnewinstoreoffersincluding HealthyLunchbox(104stores) FoodtoGosandwichesandsalads (127stores) Freshbaristacoffee(nowin11stores) Bulkfoods(5stores) Successfultrialof'FarmersOwn'milk producedintheManningValley(NSW)will beextendedto105stores AnnouncednewownbrandAustralian sourcingdealswithSPCArdmonaforSelect canneddeciduousfruitandSimplotforSelect frozenvegetables

14

Progress against objectives

Growing our leadership position in online

5.Multioptionofferingcustomers moreflexibility Thenumberofuniquevisitorstoouronline sitehasmorethandoubledduringthehalf Wedeliver3m+itemstocustomers eachweek,withhomedeliverynowavailable tomorethan95%ofAustralianhouseholds ExpandedClick&Collectnetworkto188stores atHY14,including15drivethrus,nowoffering samedaycollectionservice Targetedandpersonalisedoffersimproved customerconversionandshoppingfrequency

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Petrol
Expanded network and convenience offer
Trading Performance
Salesincreasedby8.0%drivenbyhigher averagefuelsellpricesandpleasinggrowth inmerchandisesales Competitoractivityfocusedonincreased fueldiscountswhichimpactedourfuel volumes EBITincreased4.2%to$74.0mthrough Thecontinuingshifttowardspremium unleadedanddieselfuels Strongermerchandisesales CODBasapercentageofsalesdecreased ontheprioryeardespitecostsassociated withnewpetrolcanopies

Sales

$3.7 9.8
EBIT

or

8.0 0.6

Merchandise Sales

FUEL Volumes

$74.0 M
16

or

4.2

Progress against objectives

1.Providecustomerswithacompellingfueloffer Continuedinvestmentinforecourt improvements,providingcustomerswith betteraccesstodiesel,premiumfuelsand fastflowpumps Duringthehalf,signageat32siteswere rebrandedand52canopiesandforecourts refreshed 2.Acceleratemerchandisesales Newcategoriesandproductsareadding incrementalsalesaspartofourstrongfocus onimprovingourconvenienceoffer 3.Increaseournetworkprofile Opened14(net)sitesduringHY14 TotalCaltex/Woolworthsnetwork627, including496Woolworthsownedsites Plantoopenafurther5sites(net)inFY14

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Woolworths Liquor Group

Brad Banducci Director of Liquor

Woolworths Liquor group sales

Leading liquor retailer in Australia
$billion HY10 3.1 Comments
Strongresultforthehalfyear withgoodsalesgrowthacross allthreechannels Dan Murphys(Destination),BWS (Convenience)andTheWine Quarter(Online)highlighting therelevanceofeachofour offerings GrowthintheWinecategory wasakeyhighlightforthe halfyear

HY11

3.2

HY12

3.6

HY13

3.8

HY14

4.0

Note:includesALHGrouponpremiseliquorsales

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Woolworths Liquor group

A unique business model
Connoisseur

Convenience andValue

Bargain Hunter Online/Click&Collect OffPremise Bricks&Mortar OnPremise

20

Progress against objectives

1.ContinuetoevolveDanMurphys Australiaspremierliquordestinationcontinuestogrow, opening6storesinHY14,withtotalstoresnow181 Extendedourmultioptionleadershipthrough LaunchofAustralia'sfavouriteliquorApp,with photorecognitiontechnology Extradeliveryoptions SameDay,NextDayand PickaDaydelivery FirstmajorAustralianretailertolaunchClick&Collect nationwide,withsalesmorethandoublinginQ2 Introducedanewstoreoperatingmodelwithmore customerfacingstaff 2.DeveloptheBWSbrandandconvenienceoffer RebrandingofWoolworthsLiquortoBWSinFY13 createdAustraliasmostaccessibleliquorbrand,now with1,200stores Continuedtostrengthenthebrandwithsponsorshipof TheAshesandSummerofCricketandthelaunchof 'Today'sSpecial'brandmarketingcampaign Continuedprogressintailoringourrangesaround shopperoccasions
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Progress against objectives

3.Increaseownandexclusivebrandpenetrationthrough PinnacleLiquor PinnacleLiquorcontinuestogrowasourownand exclusiveproductandbrandmarketingarm Newandinnovativeproductslaunchedduringthehalf withapleasingcustomerresponse

4.LeadershipinDigitalandDirectviaTheWineQuarter Establishedadigitalanddirectbusinesscentreof excellence,employingapproximately650people, leveragingCellarmastersdirectmarketingcapabilities Langton'scontinuestodeliverstrongsalesgrowth, reinforcingitspositionasAustralia'sleadingultrafine winebusiness

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Hotels
A key enabler of our Liquor strategy
Trading Performance
HY13
Sales($m) EBIT($m) 759

HY14 Change
788 3.8% 16.4%

140.8 163.9

Grossmargin(%) CODB(%) EBITtosales(%)

82.29 82.75

46bps

63.74 61.95 (179)bps 18.55 20.80 225bps

Tradingconditionsareachallengeat present,especiallyinBarsandGaming. OurFoodofferremainsafocusandweare seeingsolidresultsasweconcentrateon providingvaluemealsinafamilyfriendly setting Grossmarginincreasewasassistedbythe Victoriangamingregulatorychangeswhich cycledinAugust CODBdecreaseattributabletostrategic initiativestoimproveefficiencyinvenues andthecyclingofbusinessacquisition costsintheprioryear EBITincreased16.4%ontheprevioushalf yearto$163.9m Pleasingresultsfromthehotelsacquired aspartoftheLaundytransactioninthe prioryear

23

Progress against objectives

1.TobeAustraliasmostresponsibleoperatoroflocalpubs Commencedtheintroductionofvoluntaryprecommitment functionalityonallgamingmachinesaheadofanyplanned statelegislation,allowingcustomerstomonitortheirplayand settimeorspendlimits Industryleadinghotelandgamingcharterunderpinningour commitmenttoresponsibleservice
FederalHotel,MtGambier

2.Growournetwork Targetedacquisitionswillcontinue 1hotelopenedduringHY14,totalvenues327with4 additionalvenuescurrentlyplannedforFY14,whichwill supportanadditional9BWSand4DanMurphys 3.Toevolveinmeetingcustomerneeds Continuedinvestmentinfamilyfriendlyfoodoffers Expandedthedepthofourbarrangestocaterformorepremium productsandselectivelyaddingbrandedfoodoperations Improvementstoouronlinepresenceacrossthebusiness includingnewmobileenabledvenuewebsites
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CarlyleHotel,DerwentPark

SailandAnchor,Fremantle

NZ Supermarkets
Dave Chambers Managing Director

New Zealand Supermarkets

Successful promotional activity and strong Fresh sales delivering results
Trading Performance
NZD
BeforeSignificantItems1 Sales($m) EBIT($m) FundsEmployed($m)

HY13

HY14

Change2

2,944 162.3

3,020 164.4

2.6% 1.3% 2.7%

3,056.0 3,137.7

Grossmargin(%) CODB(%) EBITtosales(%) ROFE(%)

23.28 17.77 5.51 5.17

23.25 (3)bps 17.81 4bps

5.44 (7)bps 5.17 bps

HY14comparablesales0.7%2,withtheQ2result thestrongestsalesgrowthseenin18months Continuedgrowthinmarketshare,customer numbersanditemssoldreflectingtherelevance ofourofferandsuccessofpromotionalactivity Grossmargindecreaseimpactedbyahigherlevel ofpromotionalactivity,particularlyinLonglife Continuedtoincreaseourcompetitivenessinthe marketandhaveloweredshelfpricesonarange ofproducts,includingthroughourPrice Lockdownprogramwhichdeliverscustomers longtermpricereductionsonarangeoftheir favouritegroceries CODBresultreflectsstrongcostmanagement acrossthebusinessthroughimproved productivityinDCsandsupportoffices Excludingtheadditionalrentalexpense(netof depreciation)followingthedivestmentoftheSCA PropertyGroupinFY13andbeforesignificant items1 CODBdecreased22bps2 EBITincreased6.0%2 EBITmarginwasup19bps2

26

1.SignificantitemsincludetheoneofflossassociatedwithSCAPropertyGrouptransactioninHY13 2.InNZD

Progress against objectives

1.Customervalueandinnovativeoffers CustomershaverespondedwelltothelaunchofPrice Lockdown,supportedbystronginstorecommunication Producesalesgrowthoutperformedoverallgrowthwith ourfocusedgrowerprogram,supportedbystronginstore execution,maximisingseasonalsalesopportunities 2.Leveragelocalsourcing OurpreferenceinNewZealandistosourcelocallyasitis importanttoourcustomersandsupportsthelocal communitiesinwhichweoperate 96%ofsalesaresourcedfromsuppliersthatareownedor haveabaseinNewZealand,with70%ofownbrandsales fromlocallysourcedproducts Workingwith1,200NewZealandsuppliers,including hundredsoflocalfarmersandgrowers 3.Multioption Salesfromcountdown.co.nz,NewZealandsleading onlinefoodsite,delivereddoubledigitsalesgrowthfor thehalfyear Serving99%ofNewZealandthrough52fulfilmentstores

27

Progress against objectives

4.Supplychain Efficienciescontinuefromthereconfigured nationalandregionalDCoperations structure,withcostsasapercentageofsales (inNZD)decreasingby6bpsinHY14 Instoreproductavailabilityremainedstrong duringthehalf 5.GrowCountdownandfranchisenetwork 2Countdownstoresopened,withthe networknow168stores 3additional(net)Countdownstoresdueto openinFY14 Totalfranchisestoresnow56with3 additionalstorestoopeninFY14 Ourfranchiseesarecontinuingtoinvestin theirstoreswith29%ofthefranchise networknowtradinginthenewformats (16%inprioryear)

28

GENERAL MERCHANDISE
KAREN BOZIC Acting Director of Big W

GENERAL MERCHANDISE
Transformation delivering profitable growth in the future
Trading Performance
HY13 Sales($m) EBIT($m) FundsEmployed($m) 2,447 129.5 HY14 2,452 120.5 Change 0.2% (6.9)% 53.9%

Salesgrowthwas0.2%forHY14,impactedby thetimingoftheToySaleandthebusiness transformationasanticipated Tradingconditionscontinuetobechallenging withstrongcompetition,ongoingpricedeflation (HY144.1%)andincreasedpromotionalactivity Grossmarginimprovementreflectsbetter buying,shiftsinsalesmixandtheacquisitionof EziBuy.Thiswasachieveddespitehigherlevelsof clearanceactivityincategoriesbeingrationalised CODBincreasereflectsnewstoresyettoreach maturity,theEziBuyacquisitionandlowersales growth Fundsemployedincreased53.9%,whichwas impactedbythetimingofcreditorpayments relativetothereportingdatesandincludesthe acquisitionofEziBuyaswellasthecontinued rolloutandrefurbishmentofBIGWstores

709.8 1,092.7

Grossmargin(%) CODB(%) EBITtosales(%) ROFE(%)

31.47 26.18 5.29 16.11

32.90 143bps 27.99 181bps 4.91 (38)bps 11.56 (455)bps

30

Progress against objectives

1.Transformingourbusinessforthefuture CommencedourtransformationofBIGW, focusingoncategoriesofhighcustomer importancewhichwillprovidemediumto longtermprofitablegrowth Hardgoodstransformationwillencompass significantchangeaswerationaliseandmake wayfornewandexpandedcategories Firststagechangesarebeingimplemented acrossourstorenetwork(50storesinHY14, 82plannedinthesecondhalf)toexpandour coreofferincategoriessuchasToysand Footwear FocusedonenhancingBIGWreplenishment systemsandsupplychaincapabilities Implementedanewstoremanagement structuretoimprovethealignmentof instoreleadership

31

Progress against objectives

2.Stronggrowthinbrandsthatwinon valueeveryday PleasinggrowthinApparelwithstrongresults deliveredthroughexclusivebrandssuchas 'PeterMorrissey'andthe'MichelleBridges' and'GuyLeech'activewearranges Ournew'LeeCooper'rangeisshowing pleasingearlyresults Homedepartmentalsoperformedwell, particularlyKitchenwareandHomeStorage, withcustomersenjoyingthebenefitsofour exclusiveandbrandedproductranges 3.Realisingourmultioptionambition LeveragingEziBuy'sworldclass distributioncapabilitiesandexpertisein directtoconsumerretailingtoenhanceour multioptionoffer eBooksofferlaunchedinSeptemberwith 40,000+titlesdownloadedinHY14 ImplementedClick&Collectacrossourentire networkinNovember
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HOME IMPROVEMENT
MATT TYSON Managing DIRECTOR

Home Improvement

Home Improvement
Australia's fastest growing Home Improvement business
Trading Performance
OurMasters networkcontinuestogrowstrongly, with38storestradingatHY14

HOME IMPROVEMENT Sales

$796 $393

or

25.0 49.4 7.8

Masterssalesup49.4%,withstoresnowhaving tradedonaverage,for15months MastersEBITlossof$71.9mforthehalfyear Weremainfocusedonexecutingourplanto achievebreakeveninMastersduringFY16by Increasingsalesperstore

MASTERS SALES

or

Improvinggrossmargin Drivingefficienciesinstore Increasingfractionalisationofcostsinthe distributionandsupportnetwork

Home timber AND hardware SALES

$403
34

or

HomeTimberandHardwaresalesup7.8%,with recentlyrefurbishedcompanystoresachieving pleasinggrowth,withmoreplannedinFY14 TherelationshipwithourJointVenturepartner Lowesremainsstrong.Theyhaveagainextended thedateforopeningtheirputoptionexercise period

Progress against objectives

1.Improvesalesperformance Frequencyofreturncustomervisitsincreasedthrough tailoredoffers StrongtradinginKitchens,AppliancesandGardening demonstratestheappealofourdifferentiatedoffer AustraliasBestNewOnlineRetaileratthe2013ORIAs FocusontradeandseriousDIYcustomersatHome TimberandHardwarewiththe'GoWheretheTradiesGo' brandcampaigndrivinganincreaseinstorevisitations andtradesales HomeTimberandHardwarewasrecentlyawarded HardwareStoreoftheYearattheRoyMorgan CustomerSatisfactionAwards 2.Enhanceinstoreoffer OurMastersBestPriceGuaranteecontinuestoresonate wellwithcustomers.Wewillbeatallpricesonidentical itemsby10%,bothinstoreoronline Expandedourrangeofexclusivebrandsavailable inMasters Workinginpartnershipwithstrategicvendorsto introduceinnovativeproductsintotheAustralianmarket
35

Progress against objectives

3.Continuetodrivecostefficiencies Significantprogressinreducingdaysstockonhandin Mastersthroughsupplychainimprovementsand inventorymanagement Pleasingresultsfromcostsavinginitiativesinstores CommencedtheexpansionofourHomeTimberand HardwareDCinNSWwhichwilldelivercostsavings 4.SuccessfullyrolloutnewMastersstores 7storesopened 3aheadofourplanforthehalf Remainontracktoopen18storesinFY14 5.Continuetobuildtheteam AnnouncedtheappointmentofMattTysonas ManagingDirector Continuedinvestmentintrainingforemployees, enhancingourreputationforsuperiorcustomer service

36

37

Balance Sheet
$million
CONTINUINGOPERATIONS Inventory TradePayables NetInvestmentinInventory Receivables OtherCreditors WorkingCapital FixedAssetsandInvestments IntangibleAssets TotalFundsEmployed NetTaxBalances NetAssetsEmployed NetRepayableDebt1 OtherFinancialLiabilities2 NetAssets ContinuingOperations NetAssets DiscontinuedOperations TotalNetAssets 4,205.4 4,498.9 4,779.8 6.2% (10.3)% (96.5)% (4.0)% 3.3% (23.7)% 10.8% 11.4% 19.6% (4.8)% 18.8% 22.9% 20.0% 17.4% 17.4%

Change FY13 HY13 HY14 HY14/HY13

Inventoryincreasewasprimarilydrivenbynewstore openings,inparticular33AustralianSupermarkets(net) and13MastersstoressinceHY13andincreaseddirect globalsourcing WorkingCapitalwasimpactedbydifferencesinthe timingofcreditorpaymentsrelativetothereporting dates(impactapproximately$700m).Adjustingforthis, workingcapitalwasinlinewiththepriorhalfyear FixedAssetsandInvestmentsincreasereflectsongoing propertydevelopmentandcapitalexpenditure,with 139newstoresand96refurbishmentssinceHY13, offsetbyongoingdepreciation IntangibleAssetsincreasereflectstheacquisitionof EziBuyandincreasedintangiblesinourNewZealand SupermarketsbusinessattributabletothestrongerNew Zealanddollar NetRepayableDebtwasimpactedbydifferencesinthe timingofcreditorpaymentsrelativetothereporting datesandtheacquisitionofEziBuy OtherFinancialLiabilities increaselargelyreflectsan increaseintheLowesputoptioninourHome Improvementbusinessto$675.4m Shareholders'Equityincreasereflectsprofitsgenerated bytheGroupoffsetbythepaymentofdividends

(4,080.0) (5,363.0) (4,809.7) 125.4 985.2 (864.1) 1,032.0 (29.9) 990.4

(3,086.1) (3,090.3) (3,191.2) (1,975.5) (2,922.4) (2,230.7) 9,564.8 5,784.3 9,020.2 5,637.6 9,991.0 6,280.4

13,373.6 11,735.4 14,040.7 425.2 406.1 386.6

13,798.8 12,141.5 14,427.3 (3,746.9) (2,874.7) (3,532.9) (751.4) 9,300.5 9,300.5 (663.5) (796.3)

8,603.3 10,098.1

8,603.3 10,098.1

Shareholders'Equity NoncontrollingInterests TotalEquity

9,028.4 272.1 9,300.5

8,333.5 269.8

9,827.8 270.3

17.9% 0.2% 17.4%

8,603.3 10,098.1

1. Includescash,borrowings,hedgeassetsandliabilities 2. PrimarilyrepresentstheLowesputoptionandtheALHgamingentitlementliabilityresultingfromtheFY13changestotheVictoriangamingregulations

38

Average inventory days for continuing operations

Inventory levels were well controlled during the period
NumberofDays HY10 31.6 Comments
Average inventory increased by2.9daysdrivenby Mastersstorerollout Increasedbulkwine holdingsinourLiquor business Increaseddirectglobal sourcing ExcludingHomeImprovement andincrementalglobal sourcedinventory,average inventoryincreased0.7days Closing inventory dayswere up0.1daysonHY13

HY11

31.5

HY12

32.11 32.6 33.31 35.3

HY13 HY14

34.01 38.2

1.ExcludesHomeImprovementandinHY14alsoexcludesincrementalglobalsourcedinventory Note:Averageinventorybasedon13monthsrollingaverage

39

Cash flow
$million
EBITDA Total Net(increase)ininventory Netincreaseinaccountspayable Netchangeinotherworkingcapitalandnoncash CashfromOperatingActivitiesbeforeInterestandTax Netinterestpaid Taxpaid TotalcashprovidedbyOperatingActivities Paymentsforthepurchaseofbusinesses Paymentsforintangiblesassets Paymentsforproperty,plantandequipment property development Paymentsforproperty,plantandequipment other Proceedsfromthesaleofsubsidiariesandproperty,plant andequipment ProceedsfromthesaleofpropertytotheSCAProperty Group (Advances)/repaymentsofpropertyrelatedreceivables anddividendsreceived TotalcashusedinInvestingActivities Lowescashcontributions(HomeImprovement) FreeCashFlow Proceedsfromshareissues/other Dividendspaid(includingtononcontrollinginterests) FreeCashFlowafterequityrelatedFinancingActivities
40

HY13
2,328.5 (890.6) 1,387.5 74.6 2,900.0 (190.4) (507.8) 2,201.8 (201.6) (41.0) (387.1) (522.3) 62.3 764.0 (17.9) (343.6) 116.0 1,974.2 182.1 (729.8) 1,426.5

HY14 Change
2,570.8 (511.2) 669.0 51.9 2,780.5 (172.0) (564.8) 2,043.7 (337.7) (20.6) (324.6) (506.8) 73.1 12.2 28.2 (1,076.2) 60.0 1,027.5 33.7 (792.5) 268.7 213.2% 10.4%

(4.1)%

(7.2)%

CashfromOperatingActivitiesbeforeInterest andTaxdecreased4.1%onthepriorhalfyear, impactedbythetimingofcreditorpayments relativetothereportingdates.Excludingthis, theincreasewasapproximately8.8% NetInterestPaiddecreasedduetoareduction inlongtermdebtfollowingthesaleofproperties toSCAinthe2013financialyear TaxPaidincreasedduetohighertaxinstalments acrosstheGroup.TaxrefundsonlodgedFY13tax returnsofmorethan$84mwillbereceivedin thesecondhalfofFY14 PaymentsforthePurchaseofBusinesses primarilyrelatedtotheEziBuyacquisition PaymentsforPropertyDevelopmentwere lowerinHY14givenadecreaseinthelevelof developmentactivity PaymentsforProperty,PlantandEquipment werelowerinHY14andincludedourcontinued investmentinnewstoresandrefurbishmentsas wellasinvestmentsinourmultioptionanddata analyticscapabilities Lowe'sCashContributionsdecreasedcompared totheprioryear ProceedsfromShareIssueswerelowerasa resultoffeweremployeeoptionsexercised underlongtermincentiveplansgiventhe transitiontotheuseofperformancerights FreeCashFlowof$268.7mreflectstheabilityof ourbusinesstogeneratestrongcashflowswhilst continuingtoexpandandimproveourstore network

Shareholder payouts
Consistent growth in dividends
$billion
Interimdividend Finaldividend Buyback Inspeciedistribution
1.7 0.3 1.3 1.1 0.9 0.5 0.6 0.1 0.3 0.2 0.1 FY02 0.2 FY03 0.2 FY04 0.2 FY05 0.3 0.2 0.3 FY06 0.4 FY07 0.5 0.3 0.5 0.6 0.7 0.4 0.7 0.7 0.7 0.8 0.8 0.9 0.5 0.6 0.7 0.8 0.7 1.6 0.9 0.9

Comments
InHY14,wehave continuedtogrow dividendpaymentsto shareholders Payoutratioinlinewith HY13 Nosharebuybackactivity anticipatedinthesecond halfofFY14

2.2 0.7

2.2 0.5

FY08 FY09

FY10

FY11

FY12

FY13 HY14

41

Return on funds employed1 from continuing operations BEFORE Significant ITEMS

Percentage HY10 17.7 Comments
ROFEfromcontinuing operationsbeforesignificant itemsdecreased87bpsto 14.9%drivenby Theimpactofdifferences inthetimingofcreditor paymentsrelativetothe reportingdates Thecontinuinginvestment inourHomeImprovement business ROFEfromourmature businessesincreased33bps excludingdifferencesinthe timingofcreditorpayments

HY11

16.7

HY12

15.4

HY13

15.8 17.62

HY14

14.9

18.02

1. Basedonaverageofopeningandclosingfundsemployed 2. Excludingtheimpactofdifferences inthetimingofcreditorpaymentsrelativetothereportingdatesandthecontinuinginvestmentinourHomeImprovementbusiness

42

Outlook
Woolworthsremainswellpositionedinitsmarketsegmentsandhasastrong andsustainablebusinessmodel WepreviouslyprovidedguidanceforFY14netprofitaftertaxfromcontinuing operationstogrowintherangeof4% 7%(onanormalised52weekbasis excludingsignificantitems) Whilstsomeofourbusinessescontinuetoexperiencechallengingtrading conditions,wehaveseengoodprogressagainstourStrategicPrioritieswhich havedeliveredsustainableprofitgrowthforHY14 Wehaverevisedourpreviousguidanceandnowexpectnetprofitaftertaxfrom continuingoperationstogrowintherangeof5% 7%(onanormalised52week basisexcludingsignificantitems),subjecttonosignificantdeteriorationin tradingconditions

43

COMPANY RESULTS
HALF YEAR ENDED

45

Gross profit margin from continuing operations

Continued to invest in lower prices delivering greater value to customers

Percentage HY10 25.94%

Comments
Grossprofit asapercentageof salesfromcontinuingoperations increased9bpsontheprior year reflecting Improvementsinbuying Moreeffectivepromotional activity Growthinexclusivebrand ranges Positivechangesinsalesmix Wehavecontinuedtoreinvestin lowerprices,deliveringgreater valuetocustomersasevidencedby continuedaveragepricedeflation inAustralianFoodandLiquorand BIGWaswellaslowinflationin NewZealandSupermarkets

HY11

26.18%

HY12

26.33%

HY13

26.95%

HY14

27.04%

46

CODB / sales from continuing operations before significant items

A strong result given ongoing cost pressures
Percentage HY10
19.65%

Comments
CODBasapercentageofsalesfrom continuingoperationsbefore significantitems increased10bps onthepriorhalfyear,to20.61% Excludingnoncomparable additionalnetcostsfollowingthe SCAtransactionandtheHome Improvementbusiness which remainsinstartupphase,CODBas apercentageofsalesforcontinuing operationsbeforesignificant items decreased5bps,astrong resultinlightofalargenumberof newstores

HY11

19.71%

HY12

19.97%

HY13

20.51%

HY14

20.61%

47

Capital expenditure half year

$million
NewStores Refurbishments GrowthCapex SupplyChain,IT,Multioptionand StayinBusiness HomeImprovement NormalandOngoingCapex PropertyDevelopments(netofsales) excludingHomeImprovement PropertyDevelopments(netofsales) HomeImprovement NetCapexbeforeSCAPropertyGroup transaction
1.Includes106minorrefurbishmentsinAustralianSupermarkets

HY13 Actual
140 2361 376 128 65 569 224 134 927

HY14 Actual
104 179 283 214 56 553 174 152 879

Storenumbers
AustralianSupermarkets Liquor NZSupermarkets Petrol BIGW EziBuy Hotels HomeTimberandHardware Masters Group

NewStores1 HY13 HY14

17 41 4 8 4 32 10 116 26 22 2 15 3 4 1 7 80

Refurbs HY13 HY14

42 23 2 5 2 5 41 13 24 1 7 1 8 1 55

1. Grossstoreopenings(includingacquisitions) 2. Excludes106minorrefurbishmentsinAustralianSupermarkets

NormalandOngoingCapex$m,Depreciation%toSales
CapexSpend$m 900 Depreciationasa%toSales

NormalandOngoingCapex$m,Capex%toSales
CapexSpend$m 900 3.00% Capexasa%toSales 4.00% 1.60% 1.20% 0.80%

600

600 2.00% 300 1.00% 0.00% HY10 HY11 HY12 HY13 HY14

300

0.40% 0.00% HY10 HY11 HY12 HY13 HY14

48

Capital expenditure full year

$million 2014 NewStores Refurbishments GrowthCapex SupplyChain,IT,Multioptionand StayinBusiness HomeImprovement NormalandOngoingCapex PropertyDevelopments(netofsales) excludingHomeImprovement PropertyDevelopments(netofsales) HomeImprovement
NetCapexbeforeSCAPropertyGroup transaction

Previous Current Fcst Fcst 250 276 472 427 722 703
603 140 1,465 461 420 2,346 644 129 1,476 210 312 1,998

Var 26 (45) (19)

41 (11) 11 (251) (108) (348)

$million FullYear NewStores Refurbishments GrowthCapex SupplyChain,IT,Multioptionand StayinBusiness HomeImprovement NormalandOngoingCapex PropertyDevelopments(netofsales) excludingHomeImprovement PropertyDevelopments(netofsales) HomeImprovement NetCapexbeforeSCAPropertyGroup transaction

2012 2013 Actual Actual 346 300 268 614 373 137 1,124 552 374 2,050 478 778 390 110 1,278 343 296 1,917

2014 Fcst 276 427 703 644 129 1,476 210 312 1,998

NormalandOngoingCapex$m,Depreciation%toSales
CapexSpend$m 2,000 1,500 2% 1,000 1% 500 0 2010 49 2011 2012 2013 2014 0% Depreciationasa%toSales 3%

NormalandOngoingCapex$m,Capex%toSales
CapexSpend$m 2,000 1,500 1,000 500 0 2010 2011 2012 2013 2014 Capexasa%toSales 4% 3% 2% 1% 0%