woolworths holdings limited

1
woolworths holdings limited
another year of continued growth

• Revenue up 15.1 to R13.0bn
• Operating profit up 24.3 - R1.3bn
• Operating profit margin widened from 9.0 to 9.7
• Net profit before tax up 23.7 - R1.1bn
• Headline earnings per share up 22.0 - 92.1cps
  (pre adj 95.0cps)
• Distribution to shareholders up 40.3 - 54.0cps
• Cover ratio down from 1.9 to 1.7 (pre adj 1.8)
• ROE of 33.5 (2004 27.4)

2
woolworths holdings limited
progress

• Enhance shareholders ROE ?
• Woolworths card book securitised
• Share repurchase returned R1bn to shareholders
• Focus on customers ?
• Good volume growth in clothing and home
• Strong gains in food market share
• Continued store growth
• Focus on value and innovation ?
• Design/technology led buying process
• Sourcing strategy
• Clothing and home prices below last year
• Improved availability ?
• Implementation of replenishment system
• Productivity gains ?
• Reduced distribution costs per unit

3
woolworths holdings limited
trading environment south africa

• Consumer confidence levels remain high
• Stable interest rate environment
• Wage increases remain above inflation
• Growth in emerging market with increasing access
  to credit
• Robust real retail sales growth momentum

4
woolworths holdings limited results
income statement
Prior year figures restated
5
woolworths holdings limited results
expenses analysis
R262.1m
R609.8m
R1,449.6m
R1,195.6m
R3,517.1m
6
woolworths holdings limited results
expenses analysis

• Impact of change in interpretation of AC105
  Leases
• Lease expense/income recognised on a
  straight-line basis over the lease term for
  fixed-escalation rentals
• Results in an equal impact/charge to the income
  statement irrespective of the fact that cash
  flows differ
• Jun-05 Jun-04
• Impact on Opening Retained Profit -R243,0m
• Impact on Headline earnings -R24,6m -R 26,5m
• Impact on Headline Earnings per Share -2,9
  cps -3,1 cps

7
woolworths holdings limited results
HEPS and dividend cover
Prior year figures restated for AC105
Compound HEPS growth 33.3 (5 years)
8
woolworths holdings limited results
balance sheet
9
financial services results
securitisation

• R2,416m of in-store card book receivables
  securitised in Account On Us (Pty) Ltd
• Funded by
• R1,900m AAA rated notes issued
• R335m subordinated loan from Woolworths
• Balance funded by originator facility
• Legal ownership of the receivables rests with
  Account On Us and used as security for bond
  holders
• Consolidated in terms of AC412

10
woolworths holdings limited results
cash flow
11
woolworths holdings limited results
cash flow (cont.)
growth in woolworths financial services assets
R722.0m
capex spend R385.9m
12
woolworths holdings limited results
return on equity / wacc
13
woolworths retail results
income statement (excluding financial services)

Prior year figures restated
14
woolworths retail results
balance sheet (excluding financial services)
15
woolworths operations
turnover analysis
16
financial services results
income statement balance sheet
17
country road results
income statement
Change in accounting policy for distribution
costs included in inventory A0.9m
18
country road limited results
balance sheet
eliminated at Holdings level