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28 February 2014 The Manager Companies Australian Securities Exchange Limited Company Announcements Office Level 4 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam RE: Woolworths Limited – Appendix 4D Woolworths Limited Half Year Results – Appendix 4D - for the 27 weeks to 5 January 2014 is attached. For and on behalf of WOOLWORTHS LIMITED PETER J HORTON Group General Counsel and Company Secretary For personal use only

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Page 1: RE: Woolworths Limited – Appendix 4D For personal use only · RE: Woolworths Limited – Appendix 4D Woolworths Limited Half Year Results – Appendix 4D - for the 27 weeks to 5

28 February 2014 The Manager Companies Australian Securities Exchange Limited Company Announcements Office Level 4 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam RE: Woolworths Limited – Appendix 4D Woolworths Limited Half Year Results – Appendix 4D - for the 27 weeks to 5 January 2014 is attached. For and on behalf of WOOLWORTHS LIMITED

PETER J HORTON Group General Counsel and Company Secretary

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Woolworths Limited

ABN 88 000 014 675

Half Year Financial Report for the Half Year Ended 5 January 2014

This Half Year Financial Report is provided to the Australian Securities

Exchange (ASX) under ASX Listing Rule 4.2A.3 and should be read in

conjunction with the 2013 Annual Financial Report and any

announcements made to the market during the period.

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Woolworths Limited

Half Year Financial Report for the Half Year Ended 5 January 2014

Page Number

Appendix 4D Additional Information 1 Directors‟ Report 8

Auditor‟s Independence Declaration 9

Independent Auditor‟s Review Report 10

Directors‟ Declaration 12

Half Year Financial Report

Condensed Consolidated Statement of Profit or Loss 13

Condensed Consolidated Statement of Comprehensive Income 15

Condensed Consolidated Balance Sheet 18

Condensed Consolidated Statement of Changes in Equity 19

Condensed Consolidated Statement of Cash Flows 20

Notes to the Condensed Consolidated Financial Statements 21

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Woolworths Limited

Appendix 4D Additional Information For the Half Year Ended 5 January 2014

1

This Half Year Financial Report is provided to the Australian Securities Exchange (ASX) under ASX Listing Rule 4.2A.3.

Current Reporting Period: Half Year ended 5 January 2014 (27 weeks) Previous Corresponding Period: Half Year ended 30 December 2012 (27 weeks)

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Woolworths Limited

Appendix 4D Additional Information For the Half Year Ended 5 January 2014

2

Results For Announcement To The Market For the Half Year Ended 5 January 2014

Revenue and Net Profit/(Loss)

Percentage Change

% Amount

$m

Revenue from continuing operations

Revenue from discontinued operations

up

down

6.0

100.0

to 32,060.5

to nil

Total Group revenue from ordinary activities up 3.8 to 32,060.5

Profit from continuing operations after tax attributable to members1

up 8.5 to 1,321.7

Loss from discontinued operations after tax attributable to members2

down 100.0 to nil

Profit from ordinary activities after tax attributable to members3

up 14.5 to 1,321.7

Net profit attributable to members3 up 14.5 to 1,321.7

1 In the prior year, a one-off loss of $28.5 million after tax was included in continuing operations as a result of the transaction to

create the Shopping Centres Australasia Property Group (SCA Property Group) – refer note 3 for further detail. Excluding the impact of this amount, profit from continuing operations after tax attributable to members was up 6.0%.

2 In the prior year, the net loss on sale of the Consumer Electronics businesses in Australia, New Zealand and India of $65.7 million

after tax was included in discontinued operations.

3 Excluding the impact in the prior year of the one-off loss as a result of the transaction to create the SCA Property Group ($28.5

million after tax), as well as the net loss on sale of the Consumer Electronics businesses ($65.7 million after tax), net profit after tax attributable to members was up 5.8%.

Dividends (Distributions)

Amount per

security

Franked amount per

security

Interim dividend 65 cents 65 cents

Record date for determining entitlement to the dividend Interim Dividend: 21 March 2014

Brief Explanation of Revenue, Net Profit/(Loss) and Dividends (Distributions)

Refer to Press Release – First Half Profit Report and Dividend Announcement for the 27 weeks ended 5 January 2014.

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Woolworths Limited

Appendix 4D Additional Information For the Half Year Ended 5 January 2014

3

I. Details Relating to Dividends (Distributions)

Date dividend payable

Amount per security

cents

Interim dividend 2014 24 April 2014 65

2013 26 April 2013 62

Interim dividend (distribution) per security

Current Period cents

Previous Corresponding

Period cents

Ordinary securities 65 62

Interim dividend (distribution) on all securities

Current Period $m

Previous Corresponding

Period $m

Ordinary securities 815.51 770.6

1 Represents the anticipated dividend based on the shares on issue as at the date of this report. This value will

change if there are any shares issued between the date of this report and the ex-dividend date.

Other disclosures in relation to dividends (distributions)

The interim dividends in respect of ordinary securities for the Half Years ended 5 January 2014 and 30 December 2012 have not been recognised in this report in line with the requirements of AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

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Woolworths Limited

Appendix 4D Additional Information For the Half Year Ended 5 January 2014

4

I. Details Relating to Dividends (Distributions) (continued)

Dividend Reinvestment Plans

The Dividend Reinvestment Plan shown below is in operation.

Dividend Reinvestment Plan (DRP)

Under the terms and conditions of the DRP, eligible shareholders may elect to participate in respect of all or part of their shareholding, subject to any maximum and/or minimum number of shares to participate in the DRP that the Directors may specify. There is currently no minimum number of shares which a shareholder may designate as participating in the DRP. The maximum number of shares which a shareholder (other than broker‟s nominees and certain trustees) may designate as participating in the DRP is 20,000.

The last date for receipt of election notices for the DRP

21 March 2014

II. Net Tangible Assets Per Security

Current Period

Previous Corresponding

Period

cents per

share cents per

share

Net tangible assets per security 282.7 217.0

Add:

Brand names, customer relationships, liquor and gaming licences and property development rights per security

194.1 190.6

Net tangible assets per security adjusted for brand names, customer relationships, liquor and gaming licences and property development rights

476.8 407.6

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Woolworths Limited

Appendix 4D Additional Information For the Half Year Ended 5 January 2014

5

III. Details of Entities Over Which Control Has Been Gained or Lost

Control gained over entities

Name of entity (or group of entities) Multichannel Holdings Limited

Multichannel Limited

Ezibuy Holdings Limited

Ezibuy Limited

Ezibuy Operations Limited

Profile Limited

Sara Apparel Limited

Ezibuy Pty. Limited

Ezibuy Australia Limited

Ezibuy International Limited

Date control gained 30 August 2013

Current Period

$m

Contribution of the controlled entity (or group of entities) to profit after tax from ordinary activities during the period, from the date of gaining control 2.8

Name of entity (or group of entities) Southtrade International Pty Ltd

Date control gained 31 October 2013

Current Period

$m

Contribution of the controlled entity (or group of entities) to profit after tax from ordinary activities during the period, from the date of gaining control 0.5

For details of businesses acquired during the Half Year, refer to note 4.

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Woolworths Limited

Appendix 4D Additional Information For the Half Year Ended 5 January 2014

6

III. Details of Entities Over Which Control Has Been Gained or Lost (continued)

Control lost over entities

Name of entity (or group of entities) Austral Refrigeration (Suzhou) Co. Ltd

Date control lost 15 November 2013

Current Period

$m

Contribution of the controlled entity (or group of entities) to profit after tax from ordinary activities during the period, up until the date control was lost 0.5

IV. Details of Associates and Joint Venture Entities

Name of Entity

Ownership Interest

Contribution to net profit

Current Period

%

Previous Corresponding

Period %

Current Period

$m

Previous Corresponding

Period $m

Associates

Gage Roads Brewing Co Limited 25% 25% 0.3 0.1

The Quantium Group Holdings Pty Limited 50% - 2.4 -

Aggregate share of profits 2.7 0.1

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Woolworths Limited

Appendix 4D Additional Information For the Half Year Ended 5 January 2014

7

V. Information on Audit or Review

This half year report is based on accounts to which one of the following applies.

The accounts have been audited. The accounts have been

subject to review.

The accounts are in the process of being audited or subject to review.

The accounts have not yet been audited or reviewed.

Description of likely dispute or qualification if the accounts have not yet been audited or subject to review or are in the process of being audited or subjected to review.

NOT APPLICABLE

Description of dispute or qualification if the accounts have been audited or subjected to review.

NOT APPLICABLE

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Woolworths Limited

Directors’ Report

8

The directors of Woolworths Limited submit herewith the half year financial report of Woolworths Limited and its subsidiaries (the Group or Consolidated Entity) for the half year ended 5 January 2014.

DIRECTORS

Set out below are the names of the Woolworths Limited Directors holding office at any time during the half

year ended 5 January 2014 and up to the date of this Report:

Non-Executive Directors R G Waters Chairman J F Astbury (retired 31 August 2013) J R Broadbent C Cross R S Deane (retired 31 August 2013) C J Hrdlicka I J Macfarlane A D D Mackay M J Ullmer Executive Directors G O‟Brien Managing Director and Chief Executive Officer T W Pockett Finance Director REVIEW AND RESULTS OF OPERATIONS Refer to Press Release – First Half Profit Report and Dividend Announcement for the 27 weeks ended 5 January 2014.

ROUNDING OF AMOUNTS

The Company is of the kind referred to in Australian Securities and Investments Commission Class Order 98/100, dated 10 July 1998, relating to the “rounding off” of amounts in the Directors‟ report and Financial Report. In accordance with that Class Order, amounts in the Directors‟ report and half year financial report have been rounded off to the nearest tenth of a million dollars, unless otherwise indicated.

AUDITOR’S INDEPENDENCE DECLARATION

The auditor‟s independence declaration as required under s.307C of the Corporations Act 2001 is set out on page 9.

This Report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306(3) of the Corporations Act 2001 on 28 February 2014.

RALPH WATERS GRANT O’BRIEN

Chairman Managing Director and Chief Executive Officer

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Woolworths Limited

Auditor’s Independence Declaration

9

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Woolworths Limited

Independent Auditor’s Review Report

10

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Woolworths Limited

Independent Auditor’s Review Report (continued)

11

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Woolworths Limited

Directors’ Declaration

12

The Directors declare that:

(a) in the Directors‟ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; and

(b) in the Directors‟ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity.

Signed in accordance with a resolution of the directors made pursuant to s.303(5) of the Corporations Act 2001.

On behalf of the Directors

RALPH WATERS GRANT O’BRIEN

Chairman Managing Director and Chief Executive Officer 28 February 2014

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Woolworths Limited

13

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the half year ended Note Consolidated

5-Jan-14

$m

30-Dec-12

$m

Continuing Operations

Revenue from the sale of goods

31,843.4 30,037.0

Other operating revenue 92.5 84.0

Total revenue from continuing operations 31,935.9 30,121.0

Cost of sales (23,325.5) (22,025.6)

Gross profit from continuing operations 8,610.4 8,095.4

Other revenue 124.6 112.4

Branch expenses (5,247.2) (4,905.8)

Administration expenses (1,439.8) (1,400.1)

Earnings from continuing operations before interest and tax1 2,048.0 1,901.9

Financial expense (148.6) (164.1)

Financial income 7.9 12.7

Net financing costs from continuing operations (140.7) (151.4)

Profit from continuing operations before income tax expense 1,907.3 1,750.5

Income tax expense relating to continuing operations (572.9) (526.6)

Profit from continuing operations after income tax expense1 1,334.4 1,223.9

Discontinued Operations

Loss from discontinued operations 12 - (63.9)

Profit for the period 1,334.4 1,160.0

Profit attributable to:

Equity holders of the parent entity 1,321.7 1,154.8

Non-controlling interests 12.7 5.2

Profit for the period 1,334.4 1,160.0

Profit attributable to equity holders of the parent entity

relates to:

Profit from continuing operations1 1,321.7 1,218.7

Loss from discontinued operations - (63.9)

Profit attributable to equity holders of the parent entity 1,321.7 1,154.8

1 In the prior year, a one-off loss of $32.8 million before tax ($28.5 million after tax) was incurred in continuing operations as a result of

the transaction to create the Shopping Centres Australasia Property Group (SCA Property Group) – refer note 3 for further detail. Excluding the impact of this amount for the half year ended 30 December 2012:

- Earnings from continuing operations before interest and tax was $1,934.7 million;

- Profit from continuing operations after income tax expense was $1,252.4 million; and

- Profit attributable to equity holders of the parent entity relating to continuing operations was $1,247.2 million.

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Woolworths Limited

14

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (continued)

For the half year ended Consolidated

5-Jan-14

30-Dec-12

Earnings Per Share (EPS) from continuing and discontinued

operations

Basic EPS (cents per share) 106.1 93.6

Diluted EPS (cents per share) 105.6 93.3

Weighted average number of shares used in the calculation of

Basic EPS (million)

1,246.1 1,233.3

Earnings Per Share (EPS) from continuing operations

Basic EPS (cents per share) 106.1 98.8

Diluted EPS (cents per share) 105.6 98.5

Weighted average number of shares used in the calculation of

Basic EPS (million)

1,246.1 1,233.3 The condensed consolidated statement of profit or loss should be read in conjunction with the accompanying notes to the condensed consolidated financial statements.

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Woolworths Limited

15

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the half year ended Consolidated

5-Jan-14

$m

30-Dec-12

$m

Profit from continuing operations 1,334.4 1,223.9

Loss from discontinued operations - (63.9)

Profit for the period 1,334.4 1,160.0

Other comprehensive income/(loss) from continuing operations

Items that may be reclassified subsequently to profit or loss

Movement in translation of foreign operations taken to equity 240.2 17.7

Movement in the fair value of cash flow hedges 57.1 (118.8)

Transfer cash flow hedges to the income statement (84.8) 103.6

Tax effect of items that may be reclassified subsequently to profit or loss (22.6) 2.3

Total items that may be reclassified subsequently to profit or loss 189.9 4.8

Items that will not be reclassified to profit or loss

Movement in the fair value of investments in equity securities 6.5 13.5

Total items that will not be reclassified to profit or loss 6.5 13.5

Other comprehensive income for the period (net of tax) from

continuing operations

196.4 18.3

Other comprehensive income/(loss) from discontinued operations

Items that may be reclassified subsequently to profit or loss

Movement in translation of foreign operations taken to equity - 0.3

Movement in the fair value of cash flow hedges - 0.4

Tax effect of items that may be reclassified subsequently to profit or loss - (0.1)

Total items that may be reclassified subsequently to profit or loss - 0.6

Other comprehensive income for the period (net of tax) from

discontinued operations

- 0.6

Total comprehensive income from continuing operations 1,530.8 1,242.2

Total comprehensive loss from discontinued operations - (63.3)

Total comprehensive income for the period 1,530.8 1,178.9

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (continued)

For the half year ended Consolidated

5-Jan-14

$m

30-Dec-12

$m

Total comprehensive income from continuing operations

attributable to:

Equity holders of the parent 1,518.2 1,237.0

Non-controlling interests 12.6 5.2

1,530.8 1,242.2

Total comprehensive loss from discontinued operations

attributable to:

Equity holders of the parent - (63.3)

- (63.3)

Income tax on other comprehensive income

From continuing operations

Before tax Tax (expense)/

benefit

Net of

tax

For the half year ended 5 Jan 2014 $m $m $m

Items that may be reclassified subsequently to

profit or loss

Movement in translation of foreign operations taken to

equity

240.2 (30.9) 209.3

Movement in the fair value of cash flow hedges 57.1 (17.1) 40.0

Transfer cash flow hedges to the income statement (84.8) 25.4 (59.4)

212.5 (22.6) 189.9

Items that will not be reclassified to profit or loss

Movement in the fair value of investments in equity

securities

6.5 - 6.5

6.5 - 6.5

219.0 (22.6) 196.4

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (continued)

From continuing operations (continued)

Before tax

Tax (expense)/

benefit

Net of

tax

For the half year ended 30 Dec 2012 $m $m $m

Items that may be reclassified subsequently to

profit or loss

Movement in translation of foreign operations taken to

equity

17.7 (2.2) 15.5

Movement in the fair value of cash flow hedges (118.8) 35.6 (83.2)

Transfer cash flow hedges to the income statement 103.6 (31.1) 72.5

2.5 2.3 4.8

Items that will not be reclassified to profit or loss

Movement in the fair value of investments in equity

securities

13.5 - 13.5

13.5 - 13.5

16.0 2.3 18.3

From discontinued operations

Before tax Tax (expense)/

benefit

Net of

tax

For the half year ended 5 Jan 2014 $m $m $m

Items that may be reclassified subsequently to

profit or loss

- - -

- - -

Before tax

Tax (expense)/

benefit

Net of

tax

For the half year ended 30 Dec 2012 $m $m $m

Items that may be reclassified subsequently to

profit or loss

Movement in translation of foreign operations taken to

equity

0.3 - 0.3

Movement in the fair value of cash flow hedges 0.4 (0.1) 0.3

0.7 (0.1) 0.6

0.7 (0.1) 0.6

The condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying notes to the condensed consolidated financial statements.

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Woolworths Limited

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CONDENSED CONSOLIDATED BALANCE SHEET

Consolidated

Note

5-Jan-14

$m

30-Jun-13

$m

30-Dec-12

$m

Current assets

Cash and cash equivalents 1,322.4 849.2 2,274.9

Trade and other receivables 959.0 968.6 1,014.8

Inventories 4,779.8 4,205.4 4,498.9

Other financial assets 29.9 54.2 39.8

7,091.1 6,077.4 7,828.4

Assets classified as held for sale 12 143.6 148.7 182.2

Total current assets 7,234.7 6,226.1 8,010.6

Non-current assets

Trade and other receivables 31.4 16.6 17.2

Other financial assets 383.3 358.7 208.1

Property, plant and equipment 9,660.1 9,246.1 8,722.1

Intangible assets 6,280.4 5,784.3 5,637.6

Deferred tax assets 644.6 618.4 649.8

Total non-current assets 16,999.8 16,024.1 15,234.8

Total assets 24,234.5 22,250.2 23,245.4

Current liabilities

Trade and other payables 6,181.4 5,390.3 6,680.6

Borrowings 383.3 169.4 37.5

Current tax liabilities 258.0 193.2 243.7

Other financial liabilities 150.6 145.9 165.6

Provisions 987.9 967.2 965.9

Total current liabilities 7,961.2 6,866.0 8,093.3

Non-current liabilities

Borrowings 4,371.9 4,282.5 4,592.7

Other financial liabilities 971.7 992.6 1,149.3

Provisions 559.1 549.2 542.4

Other 272.5 259.4 264.4

Total non-current liabilities 6,175.2 6,083.7 6,548.8

Total liabilities 14,136.4 12,949.7 14,642.1

Net assets 10,098.1 9,300.5 8,603.3

Equity

Issued capital 4,664.7 4,522.7 4,283.3

Shares held in trust (139.0) (180.5) (59.1)

Reserves 204.4 25.1 (206.3)

Retained profits 5,097.7 4,661.1 4,315.6

Equity attributable to the members of Woolworths

Limited

9,827.8 9,028.4 8,333.5

Non-controlling interests 270.3 272.1 269.8

Total equity 10,098.1 9,300.5 8,603.3

The condensed consolidated balance sheet should be read in conjunction with the accompanying notes to the condensed consolidated financial statements.

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Woolworths Limited

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

The condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes to the condensed consolidated financial statements.

For the half year ended 5 January 2014 Issued

Capital

Shares

Held In Trust

Hedging

Reserve

Foreign

Currency

Translation

Reserve

Remuneration

Reserve

Asset

Revaluation

Reserve

Equity

Instrument

Reserve

Retained

Profits

Equity

Attributable to

Members of

Woolworths

Limited

Non-

Controlling

Interests

Total Equity

$m $m $m $m $m $m $m $m $m $m $m

Balance at 1 July 2013 4,522.7 (180.5) (35.6) (167.3) 290.6 16.4 (79.0) 4,661.1 9,028.4 272.1 9,300.5

Profit after income tax expense - - - - - - - 1,321.7 1,321.7 12.7 1,334.4

Other comprehensive income for the period (net of tax) - - (19.3) 209.3 - - 6.5 - 196.5 (0.1) 196.4

Total comprehensive income for the period (net of tax) - - (19.3) 209.3 - - 6.5 1,321.7 1,518.2 12.6 1,530.8

Dividends paid - - - - - - - (888.2) (888.2) (15.6) (903.8)

Dividends paid - treasury shares 3.1 3.1 - 3.1

Issue of shares as a result of options exercised under employee long term incentive plans 33.7 - - - - - - - 33.7 - 33.7

Issue of shares as a result of the dividend reinvestment plan 108.3 - - - - - - - 108.3 - 108.3

Issue of shares under the employee share plan and long term incentive plans - 41.5 - - (41.5) - - - - - -

Issue of shares to non-controlling interests - - - - - - - - - 60.0 60.0

Equity settled share based payments expense - - - - 24.3 - - - 24.3 - 24.3

Reclassification of non-controlling interests for recognition of financial liability - - - - - - - - - (44.2) (44.2)

Other - - - - - - - - - (14.6) (14.6)

Balance at 5 January 2014 4,664.7 (139.0) (54.9) 42.0 273.4 16.4 (72.5) 5,097.7 9,827.8 270.3 10,098.1

For the half year ended 30 December 2012 Issued

Capital

Shares

Held In Trust

Hedging

Reserve

Foreign

Currency

Translation

Reserve

Remuneration

Reserve

Asset

Revaluation

Reserve

Equity

Instrument

Reserve

Retained

Profits

Equity

Attributable to

Members of

Woolworths

Limited

Non-

Controlling

Interests

Total

Equity

$m $m $m $m $m $m $m $m $m $m $m

Balance at 25 June 2012 4,336.6 (60.7) (52.8) (349.0) 246.2 16.4 (111.9) 4,163.4 8,188.2 258.1 8,446.3

Profit after income tax expense - - - - - - - 1,154.8 1,154.8 5.2 1,160.0

Other comprehensive income for the period (net of tax) - - (10.4) 15.8 - - 13.5 - 18.9 - 18.9

Total comprehensive income for the period (net of tax) - - (10.4) 15.8 - - 13.5 1,154.8 1,173.7 5.2 1,178.9

Dividends paid - - - - - - - (826.9) (826.9) (7.0) (833.9)

Issue of shares as a result of options exercised under employee long term incentive plans 181.5 - - - - - - - 181.5 - 181.5

Issue of shares as a result of the dividend reinvestment plan 104.2 - - - - - - - 104.2 - 104.2

Issue of shares under the employee share plan and long term incentive plans - 1.6 - - (0.5) - - - 1.1 - 1.1

Issue of shares to non-controlling interests - - - - - - - - - 116.0 116.0

Equity settled share based payments expense - - - - 17.9 - - - 17.9 - 17.9

Sale of businesses - - (0.2) 8.7 - - - - 8.5 - 8.5

Reclassification of non-controlling interests for recognition of financial liability - - - - - - - - - (102.5) (102.5)

In-specie distribution to Woolworths Limited shareholders (338.6) - - - - - - (176.1) (514.7) - (514.7)

Other (0.4) - - - - - - 0.4 - - -

Balance at 30 December 2012 4,283.3 (59.1) (63.4) (324.5) 263.6 16.4 (98.4) 4,315.6 8,333.5 269.8 8,603.3

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the half year ended 5-Jan-14

$m

30-Dec-12

$m Note

Cash Flows From Operating Activities

Receipts from customers 34,363.6 33,008.1

Receipts from vendors and tenants 21.1 28.9

Payments to suppliers and employees (31,604.2) (30,137.0)

Interest and costs of finance paid (177.0) (198.9)

Interest received 5.0 8.5

Income tax paid (564.8) (507.8)

Net cash provided by operating activities 2,043.7 2,201.8

Cash Flows From Investing Activities

Proceeds from the sale of property, plant and equipment and

subsidiaries

73.1 62.3

Proceeds from the sale of property to the SCA Property Group 12.2 764.0

(Advances)/repayments of property related receivables 25.3 (20.8)

Payments for property, plant and equipment – property development (324.6) (387.1)

Payments for property, plant and equipment (excluding property

development)

(506.8) (522.3)

Payments for the purchase of intangible assets (20.6) (41.0)

Dividends received 2.9 2.9

Payments for the purchase of businesses 4 (337.7) (201.6)

Net cash used in investing activities (1,076.2) (343.6)

Cash Flows From Financing Activities

Proceeds from the issue of equity securities 33.7 182.1

Proceeds from the issue of equity securities in subsidiary to non-

controlling interest

60.0 116.0

Proceeds from external borrowings 4,867.6 4,945.3

Repayment of external borrowings (4,668.9) (4,943.8)

Dividends paid (776.9) (722.8)

Dividends paid to non-controlling interests (15.6) (7.0)

Net cash used in financing activities (500.1) (430.2)

Net Increase In Cash Held 467.4 1,428.0

Effect of exchange rate changes on foreign currency held 5.8 1.7

Cash and cash equivalents at the beginning of the financial year 849.2 845.2

Cash and cash equivalents at the end of the financial period 1,322.4 2,274.9

The condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes to the condensed consolidated financial statements.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 Significant accounting policies

Woolworths Limited (the “Company”) is a company domiciled in Australia. The condensed consolidated financial report of the Company for the 27 weeks ended 5 January 2014 comprises the Company and its subsidiaries (together referred to as the “Consolidated Entity” or “Group”).

Statement of compliance

The half year financial report for the 27 weeks ended 5 January 2014 (“Half Year Financial Report”) is a general purpose financial report which has been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. The condensed consolidated half year financial report does not include all of the information required for a full annual financial report, and should be read in conjunction with the annual financial report of the Consolidated Entity as at and for the 53 weeks ended 30 June 2013 and any public announcements by Woolworths Limited and its subsidiaries during the half year in accordance with continuous disclosure obligations under the Corporations Act 2001.

The Half Year Financial Report was approved by the Board of Directors on 28 February 2014.

Basis of preparation

The half year financial report has been prepared on the basis of historical cost, except for available for sale financial assets, derivative financial instruments, financial assets valued through other comprehensive income and other financial liabilities that are measured at re-valued amounts or fair values.

All amounts are presented in Australian Dollars, unless otherwise noted.

The Company is of a kind referred to in ASIC Class Order 98/100, dated 10 July 1998, and in accordance with the Class Order, amounts in the financial report have been rounded off to the nearest tenth of a million dollars, unless otherwise stated.

The accounting policies and methods of computation adopted in the preparation of the half year financial report are consistent with those adopted and disclosed in the Company‟s annual financial report for the 53 weeks ended 30 June 2013, except for the impact of the standards and interpretations described below. These accounting policies are consistent with Accounting Standards and with International Financial Reporting Standards.

Certain comparative amounts have been reclassified to conform with the current year‟s presentation to better reflect the economic nature of the assets and liabilities of the Group.

The following amendments to Australian Accounting Standards have been adopted during the period but do not have a material impact on the Group. Where there has been a significant change in accounting policy, an explanation of the change has been provided below:

AASB 10 „Consolidated Financial Statements‟;

AASB 10 changes the definition of control such that an investor controls an investee when a) it has power over an investee, b) it is exposed, or has rights to variable returns from its involvement with the investee, and c) has the ability to use its power to affect its returns. All three criteria must be met for an investor to have control over an investee. Previously, control was defined as the power to govern the financial and operating policies of an entity so as to obtain benefit from its activities.

AASB 11 „Joint Arrangements‟;

AASB 11 uses the principle of control in AASB 10 to define joint control, and therefore the determination of whether joint control exists has changed. The Group is required to classify its interests in joint arrangements as either joint operations or joint ventures in accordance with the structure of the arrangement. Joint operations give the parties a right to the underlying assets and obligations of the arrangement and are accounted for by recognising the Group‟s share of those assets and obligations. Joint ventures give the parties a right to the net assets of the venture and are accounted for using the equity method.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

1 Significant accounting policies (continued)

Previously, AASB 131 „Interests in Joint Ventures‟ contemplated three types of joint arrangements – jointly controlled entities, jointly controlled operations and jointly controlled assets. The classification of joint arrangements under AASB 131 was primarily based on the legal form of the arrangement (e.g. a joint arrangement that was established through a separate entity was accounted for as a jointly controlled entity).

AASB 13 „Fair Value Measurement‟ and AASB 2011-8 „Amendments to Australian Accounting Standards arising from AASB 13‟;

AASB 13 establishes a single source of guidance for determining the fair value of assets and liabilities. It does not change when fair value is required to be used, but rather provides guidance on how to determine fair value when required or permitted.

The scope of AASB 13 is broad and applies to both financial instrument items and non-financial instrument items where other AASBs require or permit fair value measurement (excluding share based payments under AASB 2 „Share-based Payment‟ and leasing transactions within the scope of AASB 117 „Leases‟). AASB 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal market at the measurement date under current market conditions. Fair value is an „exit price‟ regardless of whether that price is directly observable or estimated using another valuation technique. AASB 13 has been applied prospectively.

AASB 119 „Employee Benefits (2011)‟ and AASB 2011-10 „Amendments to Australian Accounting Standards arising from AASB 119 (2011)‟;

The revisions to AASB 119 have resulted in amendments to the Group‟s accounting policy for defined benefit plans. The interest cost and expected return on plan assets used in the previous version of AASB 119 are replaced with a „net interest‟ amount, which is calculated by applying the discount rate to the net defined benefit asset or liability. The impact of this change is immaterial to the Group and therefore there is no restatement to comparative information.

AASB 12 „Disclosure of Interests in Other Entities‟;

AASB 127 „Separate Financial Statements (2011)‟;

AASB 128 „Investments in Associates and Joint Ventures (2011)‟;

AASB 2011-7 „Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements standards‟;

AASB 1053 „Application of Tiers of Australian Accounting Standards‟ and AASB 2010-2 „Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements‟;

AASB 2011-4 „Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements‟;

AASB 2011-9 „Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income‟;

AASB 2012-2 „Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities (Amendments to AASB 7)‟;

AASB 2012-5 „Amendments to Australian Accounting Standards arising from the Annual Improvements 2009-2011 Cycle‟;

AASB 2012-9 „Amendment to AASB 1048 arising from the Withdrawal of Australian Interpretation 1039‟; and

AASB 2012-10 „Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments‟.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

2 Segment Information

The Group has six reportable segments related to continuing operations. The reportable segments were identified on the basis of internal reports on the components of the Group that are regularly reviewed by the Chief Operating Decision Maker in order to allocate resources to the segment and assess its performance. These business units offer different products and services and are managed separately because they require different technology and marketing strategies. The Group‟s reportable segments are as follows:

– Australian Food and Liquor – procurement of food and liquor and products for resale to customers in Australia

– New Zealand Supermarkets – procurement of food and liquor and products for resale to customers in New Zealand

– Petrol – procurement of petroleum products for resale to customers in Australia – General Merchandise – procurement of general merchandise products for resale to customers in

Australia and New Zealand – Hotels – provision of leisure and hospitality services including food and alcohol, accommodation,

entertainment and gaming – Home Improvement – procurement of home improvement products for resale to customers in

Australia The Unallocated group consists of the Group‟s other operating segments that are not separately reportable as well as various support functions including property and head office costs. Discontinued operations represents the Consumer Electronics segment, which was the procurement of electronic products for resale to customers in Australia and New Zealand and a wholesale business in India.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

2 Segment Information (continued)

HY14 HY13 HY14 HY13 HY14 HY13 HY14 HY13 HY14 HY13 HY14 HY13 HY14 HY13 HY14 HY13 HY14 HY13 HY14 HY13

$A m $A m $A m $A m $A m $A m $A m $A m $A m $A m $A m $A m $A m $A m $A m $A m $A m $A m $A m $A m

Segment disclosures

Business segments

Sales to customers 21,476.6 20,487.6 2,665.2 2,312.7 3,665.0 3,393.2 2,451.9 2,447.0 788.3 759.4 796.4 637.1 - - 31,843.4 30,037.0 - 641.6 31,843.4 30,678.6

Other operating revenue 87.9 76.4 4.6 3.9 - - - - - - - - - 3.7 92.5 84.0 - - 92.5 84.0

Inter-segment revenue - - - - - - - - - - - - 385.6 349.4 385.6 349.4 - 0.2 385.6 349.6

Segment revenue 21,564.5 20,564.0 2,669.8 2,316.6 3,665.0 3,393.2 2,451.9 2,447.0 788.3 759.4 796.4 637.1 385.6 353.1 32,321.5 30,470.4 - 641.8 32,321.5 31,112.2

Eliminations (385.6) (349.4) (385.6) (349.4) - (0.2) (385.6) (349.6)

Unallocated revenue (6) 124.6 112.4 124.6 112.4 - 0.3 124.6 112.7

Total revenue 21,564.5 20,564.0 2,669.8 2,316.6 3,665.0 3,393.2 2,451.9 2,447.0 788.3 759.4 796.4 637.1 124.6 116.1 32,060.5 30,233.4 - 641.9 32,060.5 30,875.3

Segment earnings before interest and tax 1,692.1 1,583.9 136.8 124.7 74.0 71.0 120.5 129.5 163.9 140.8 (64.4) (58.5) (74.9) (56.7) 2,048.0 1,934.7 - 2.5 2,048.0 1,937.2

Loss on SCA Group property transaction - (32.8) - - - (32.8)

Profit/(Loss) on sale of subsidiaries - - - (63.7) - (63.7)

Earnings before interest and tax 2,048.0 1,901.9 - (61.2) 2,048.0 1,840.7

Net financing cost (140.7) (151.4) - (0.5) (140.7) (151.9)

Profit before income tax expense 1,907.3 1,750.5 - (61.7) 1,907.3 1,688.8

Income tax expense (572.9) (526.6) - (2.2) (572.9) (528.8)

Profit after income tax expense 1,334.4 1,223.9 - (63.9) 1,334.4 1,160.0

Segment depreciation and amortisation 290.3 272.7 49.3 43.7 16.8 16.7 51.3 46.9 53.5 47.0 27.4 18.4 34.2 42.4 522.8 487.8 - - 522.8 487.8

Capital expenditure (7) 298.5 251.0 55.0 60.0 26.6 19.4 319.7 29.3 53.7 447.7 201.7 192.1 252.2 283.1 1,207.4 1,282.6 - 2.6 1,207.4 1,285.2

(1) Australian Food & Liquor is comprised of supermarket and liquor stores and wholesale food and liquor in Australia.

(2) General Merchandise includes BIG W and EziBuy

(3) Hotels is comprised of on-premise liquor sales, food, accommodation, gaming and venue hire.

(4) Unallocated is comprised of corporate head office and the property division.

(5) Discontinued operations is comprised of Consumer Electronics Australia, New Zealand and India.

(6) Unallocated revenue is comprised of rent and other revenue from operating activities across the Group.

(7) Capital expenditure is comprised of property, plant and equipment and intangible asset additions.

ConsolidatedDiscontinued

Operations (5)Hotels (3) Total Continuing

OperationsUnallocated (4)Home ImprovementPetrol

Australian Food &

Liquor (1) General Merchandise (2)New Zealand

Supermarkets

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

3 Significant Transactions Creation of SCA Property Group and In-specie Distribution to Woolworths Limited Shareholders

In October 2012, Woolworths Limited announced a proposal to create the Shopping Centres Australasia Property Group (SCA Property Group), a newly established ASX listed Real Estate Investment Trust (REIT) through an in-specie distribution of stapled units in the SCA Property Group to all Woolworths Limited shareholders. This proposal was voted in favour of at the Woolworths Limited Annual General Meeting on 22 November 2012 and the transaction was implemented on 11 December 2012. Woolworths transferred its ownership of 65 properties to the SCA Property Group in December 2012, reducing the property, plant and equipment held by the Woolworths Group by $1.3 billion. A one-off loss of $28.5 million after tax was incurred as a result of this transaction, relating largely to provisions for rental guarantees provided by Woolworths in relation to specialty leasing risk. Cash consideration of $764.0 million was received from the SCA Property Group in respect of the sale of the properties. An additional three New Zealand properties were sold to the SCA Property Group in the second half of the 2013 financial year and one final New Zealand property was sold in November 2013, bringing the total consideration to $815.0 million, and a total reduction in property, plant and equipment held by the Woolworths Group of $1.3 billion.

Divestment of Consumer Electronics Businesses

In October 2012, Woolworths completed the sale of 100% of its shares in Woolworths Wholesale (India) Private Limited to Infiniti Retail Limited and in November 2012 completed the sale of the Dick Smith Electronics Australia and New Zealand businesses to Anchorage Capital Partners. Refer to note 12 for further details. US 144A Bond Redemption Costs

In June 2013, the redemption of some US 144A bonds was finalised. US$614.8 million of bonds were redeemed with a one off cost to the profit or loss (financing costs) of $82.3 million before tax ($57.6 million after tax) in the 2013 financial year.

4 Business Acquisitions

On 30 August 2013, Woolworths completed the acquisition of Multichannel Holdings Limited and EziBuy Holdings Limited, along with all associated subsidiaries (the EziBuy acquisition) for consideration of $307.0 million. EziBuy is a leading direct-to-customer retailer of apparel and homewares in Australia and New Zealand.

Over the course of the half year, Woolworths Limited also acquired a hotel venue and various other businesses. Woolworths controls each business acquired during the half year ended 5 January 2014 and has consolidated their results from the dates of acquisition.

Total net consideration was $337.7 million (inclusive of the EziBuy acquisition). Net assets acquired comprised inventory $31.6 million, brand, customer relationship and other intangible assets $49.5 million, property, plant and equipment $14.9 million, other assets of $17.2 million and other liabilities of $35.6 million, with goodwill on acquisition of $260.1 million. Goodwill has arisen on acquisition of these businesses primarily because of their capacity to generate recurring revenue streams.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

5 Dividends Paid

27 weeks ended

5-Jan-14

$m

30-Jun-13

$m

30-Dec-12

$m

Final dividend in respect of 2013 year of 71 cents (2012: 67 cents) per fully paid ordinary share 100% franked at 30% tax rate (2012: 100%) 888.2 - 826.9

Interim dividend in respect of 2013 year of 62 cents (2012: 59 cents) per fully paid ordinary share 100% franked at 30% tax rate (2012: 100%) - 770.6 -

On 28 February 2014, the board of directors declared a 2014 interim dividend of 65 cents (2013: 62 cents) per share. This will be paid on 24 April 2014 will be approximately $815.5 million (2013: $770.6 million). No provision for the dividend has been made in the half year Financial Report in line with the requirements of AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

6 Contingent Liabilities

Contingent liabilities were as follows:

5-Jan-14

$m

30-Dec-12

$m

Bank guarantees1 53.0 46.1

Workers compensation self-insurance guarantees2 768.8 765.6

Outstanding letters of credit issued to suppliers 7.3 27.4

Other 6.5 6.5

835.6 845.6

1 This item largely comprises guarantees relating to conditions set out in development applications and for the

sale of properties in the normal course of business.

2 State Work Cover authorities require guarantees against workers‟ compensation self-insurance liabilities.

The guarantee is based on independent actuarial advice of the outstanding liability.

No provision has been made in the half year Financial Report in respect of these contingencies, however there is a provision of $563.0 million (30 December 2012: $561.8 million) for self-insured risks, which includes liabilities relating to workers‟ compensation claims, that has been recognised in the balance sheet at balance date.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

7 Capital Expenditure Commitments

Capital expenditure commitments were as follows:

5-Jan-14

$m

30-Dec-12

$m

Estimated capital expenditure under firm contracts, not provided for in these financial statements, payable:

Not later than one year 535.4 482.5

Later than one year, not later than two years - 2.0

535.4 484.5

8 Goodwill

The intangibles balance in the condensed consolidated balance sheet includes the following movements in goodwill:

5-Jan-14

$m

30-Dec-12

$m

Carrying amount at start of period 3,400.9 3,221.8

Additions arising from the acquisition of businesses1 260.1 33.3

Disposals and transfers - (0.5)

Effect of movements in foreign exchange rates 183.7 14.3

Carrying amount at end of period 3,844.7 3,268.9

1 Refer to note 4.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

9 Issued Capital

5-Jan-14 30-Dec-12

Issued and paid up share capital

1,254,616,061 fully paid ordinary shares

(30 December 2012: 1,242,618,001)

Fully paid ordinary shares carry one vote per share and the right to dividends

Reconciliation of fully paid share capital $m $m

Balance at beginning of period 4,522.7 4,336.6

Issue of shares as a result of options exercised under executive long term incentive plans 33.7 181.5

Issue of shares as a result of the dividend reinvestment plan 108.3 104.2

Adjustment to reflect the final proceeds for shares issued under the Employee Share Plan - (0.4)

In-specie distribution to Woolworths Limited shareholders associated with creation of the SCA Property Group

1 - (338.6)

Balance at end of period 4,664.7 4,283.3

Reconciliation of fully paid share capital No. of shares m

No. of shares m

Balance at beginning of period 1,250.2 1,231.9

Issue of shares as a result of options exercised under executive long term incentive plans 1.3 7.1

Issue of shares as a result of the dividend reinvestment plan 3.1 3.6

Balance at end of period 1,254.6 1,242.6

Shares held in trust

Reconciliation of shares held in trust $m $m

Balance at beginning of period (180.5) (60.7)

Issue of shares under the employee share plan and long term incentive plans 41.5 1.6

Balance at end of period (139.0) (59.1)

Reconciliation of shares held in trust No. of shares m

No. of shares m

Balance at beginning of period 5.8 2.8

Issue of shares under the employee share plan and long term incentive plans (1.6) (0.1)

Other shares acquired by the Woolworths Employee Share Trust 1.6 -

Balance at end of period 5.8 2.7

1 Includes capital component of the in-specie distribution as well as costs (stamp duty, advisory and other) associated with the

transaction.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

10 Financial Instruments

Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis

Some of the Group‟s financial assets and financial liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined. They are grouped into levels 1 to 3 based on the degree to which the fair value measurement inputs are observable.

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Financial assets/

financial liabilities

Fair value as at Fair value hierarchy

Valuation technique(s) and

key input(s)

Significant unobservable

input(s)

Relationship of

unobservable inputs to fair

value

5-Jan-14 30-Dec-12

Listed equity securities

Assets

$152.6m

Assets

$112.3m

Level 1 Quoted last sale prices in an active market

n/a n/a

Forward exchange contracts and foreign currency options

Assets

$14.2m

Liabilities

$5.7m

Assets

$20.9m

Liabilities

$2.5m

Level 2 Discounted cash flow

Future cash flows are estimated based on market forward exchange rates as at the end of the reporting period and the contract forward rate, discounted by the observable yield curves of the respective currency

n/a n/a

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

10 Financial Instruments (continued)

Financial assets/

financial liabilities

Fair value as at Fair value hierarchy

Valuation technique(s) and

key input(s)

Significant unobservable

input(s)

Relationship of

unobservable inputs to fair

value

5-Jan-14 30-Dec-12

Interest rate swaps

Liabilities

$221.6m

Liabilities

$398.2m

Level 2 Discounted cash flow

Future cash flows are estimated based on market forward interest rates as at the end of the reporting period and the contract interest rates, discounted at a rate that reflects the credit risk of the various respective counterparties

n/a n/a

Cross currency swaps

Assets

$211.7m

Liabilities

$98.7m

Assets

$111.1m

Liabilities

$250.7m

Level 2 Discounted cash flow

Future cash flows are estimated based on a combination of market forward exchange rates and market forward interest rates as at the end of the reporting period and the contract forward exchange and interest rates, discounted at a rate that reflects the credit risk of the various respective counterparties

n/a n/a

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

10 Financial Instruments (continued)

Financial assets/

financial liabilities

Fair value as at Fair value hierarchy

Valuation technique(s) and

key input(s)

Significant unobservable

input(s)

Relationship of

unobservable inputs to fair

value

5-Jan-14 30-Dec-12

Put options over non-controlling interests

Liabilities

$702.8m

Liabilities

$536.4m

Level 3 Discounted cash flow

Free cash flow forecasts over the explicit forecast period

The higher the free cash flow forecasts, the higher the fair value

Terminal value The higher the terminal value, the higher the fair value

The discount rate applied to the free cash flow forecasts and terminal value

The higher the discount rate, the lower the fair value

There were no transfers between Level 1 and Level 2 in the period.

Lowe’s Companies, Inc. (‘Lowe’s’) put option

Woolworths Limited owns 66.7% of Hydrox Holdings Pty Ltd (Hydrox) with the remaining 33.3% held by Lowe‟s. As part of the terms of the Agreement between the parties which was entered in the 2010 financial year, Lowe‟s holds a put option, which originally could be exercised after the fourth anniversary of the Agreement (i.e. after 20 October 2013). In the 2013 financial year, Lowe‟s agreed to amend the Agreement such that the option cannot be exercised for five years (i.e. after 20 October 2014) and in the 2014 financial year agreed to a further amendment such that the option cannot be exercised for six years (i.e. after 20 October 2015). If exercised, this option requires Woolworths to acquire Lowe‟s non-controlling interest shareholding of 33.3% in Hydrox at an amount which is representative of Fair Market Value.

The Fair Market Value of the equity in Hydrox was determined based on a discounted cash flow („DCF‟) methodology using the Board approved five year cash flow forecasts, adjusted for current trading results. Cash flows beyond the five year period were extrapolated using estimated growth rates, which are based on the Group‟s estimates taking into consideration past historical performance as well as expected long-term operating conditions. Growth rates do not exceed the long-term average growth rate for the industry. The forecast cash flows over the explicit forecast period and terminal value were discounted to present value using a post-tax discount rate in the range of 11.0% to 12.0%. Discount rates are based on the weighted average cost of capital determined by prevailing or benchmarked market inputs. Other assumptions are determined with reference to external sources of information and use consistent and conservative estimates for variables such as terminal cash flow multiples.

If the above discount rate applied to the valuation model were 0.25% higher/ lower while all other variables were held constant, the carrying amount of the put option liability would increase/ decrease $48.7 million.

Other put options

This relates to put options granted to the non-controlling interests in a subsidiary of Hydrox Holdings Pty Ltd and a subsidiary of Pinnacle Liquor Group Pty Ltd.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

10 Financial Instruments (continued)

Reconciliation of Level 3 fair value measurements

5-Jan-14

$m

30-Dec-12

$m

Opening balance (642.4) (433.9)

Issue of equity in subsidiary to non-controlling interest and loss attributable to non-controlling interest (44.2) (102.5)

Put option granted to non-controlling interest (16.2) -

Closing balance (702.8) (536.4)

Fair value of financial assets and financial liabilities that are not measured at fair value on a recurring basis (but fair value disclosures are required)

The carrying value of cash and cash equivalents, financial assets and non-interest bearing monetary financial liabilities of the consolidated entity approximates their fair value and as such they have been omitted from these disclosures.

The fair value of other monetary financial assets and liabilities is based upon market prices where a market exists or the expected future cash flows, discounted where appropriate by current interest rates for assets and liabilities with similar risk profiles.

5-Jan-14 30-Dec-12

Carrying amount $m

Fair value $m

Carrying amount $m

Fair value $m

Financial assets/(liabilities)

Banks loans 1,2

(382.2) (377.2) (35.1) (27.4)

Other loans 1,2,3

(4,426.3) (4,415.2) (4,656.8) (4,642.1)

Total (4,808.5) (4,792.4) (4,691.9) (4,669.5)

For the half year financial period ended 5 January 2014, the carrying amount for financial liabilities is based on the principal outstanding adjusted for: 1 Interest accruals on outstanding debt (total of $37.2 million) 2 Unamortised borrowing costs (total of $16.1 million) 3 Effect of revaluation of USD borrowings (total of $20.8 million)

11 Subsequent Events

There have been no events subsequent to the balance date, which would have a material impact on the Group‟s financial statements at 5 January 2014.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

12 Assets Held for Sale and Discontinued Operations

In January 2012, Woolworths Limited („Woolworths‟) announced its intention to restructure its Consumer Electronics Australia and New Zealand business, with a view to divesting this business. Subsequent to this, as part of the broader Woolworths Group strategy, it was determined that Woolworths would exit the Consumer Electronics market segment and thus its Consumer Electronics wholesale business in India would be divested.

On 27 September 2012, the Group announced the sale of its wholesale operations in India to Infiniti Retail Limited (Infiniti) and the sale of Dick Smith Australia and New Zealand to Anchorage Capital Partners (Anchorage).

The sale of the shares in Woolworths Wholesale (India) Private Limited to Infiniti took effect from 15 October 2012 and the sale of Dick Smith Holdings Pty Limited and its subsidiaries to Anchorage took effect from 26 November 2012.

In July 2013, Woolworths agreed to release Anchorage from its obligation to provide agreed benefits to Woolworths from any upside resulting from the future sale of Dick Smith by Anchorage. In return, Woolworths received payments totalling $74.0 million ($50.0 million paid in June 2013 and $24.0 million paid during the 27 weeks ended 5 January 2014). This additional consideration was recorded as income in the 2013 financial year.

The half year results and cash flows from the discontinued operations (the Consumer Electronics businesses in Australia, New Zealand and India) are as follows:

5-Jan-14

$m

30-Dec-12

$m

Loss from Discontinued Operations

Revenue

- 641.6

Other revenue - 0.3

Total revenue - 641.9

Expenses - (639.9)

Profit before income tax - 2.0

Attributable income tax expense - (0.2)

Profit for the period from discontinued operations - 1.8

Loss on sale of the subsidiaries before income tax - (63.7)

Attributable income tax expense - (2.0)

Loss on sale of the subsidiaries after income tax1 - (65.7)

Loss from discontinued operations1 - (63.9)

Cash Flows from Discontinued Operations

Net cash outflows from operating activities - (113.7)

Net cash outflows from investing activities - 103.3

Net cash inflows from financing activities - 10.3

Net cash outflow - (0.1)

1 After reflecting the additional sale proceeds, which were agreed in the second half of the 2013 financial year, there was a profit on the

sale of subsidiaries after income tax expense of $7.9 million, and a profit from discontinued operations of $9.7 million for the 2013 financial year.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

12 Assets Held for Sale and Discontinued Operations (continued)

Details of the sale of the subsidiaries are as follows:

30-Jun-13

$m

30-Dec-12

$m

Consideration received or receivable:

Cash 126.3 49.4

Proceeds receivable1 24.0 26.9

Total disposal consideration 150.3 76.3

Carrying amount of net assets sold 131.9 131.5

Reserves transferred to profit or loss 8.5 8.5

Profit/(Loss) on sale before income tax 9.9 (63.7)

Attributable income tax expense (2.0) (2.0)

Profit/(Loss) on sale after income tax 7.9 (65.7)

1 The amounts receivable at 30 December 2012, were received during the 2013 financial year. The amounts receivable at 30 June

2013, were received during the 27 weeks ended 5 January 2014.

The combined carrying amounts of assets and liabilities as at the date of sale were as follows:

30-Jun-13

$m

30-Dec-12

$m

Cash and cash equivalents 20.5 20.5

Trade and other receivables 34.2 34.2

Inventories 245.9 245.9

Property, plant and equipment 50.9 50.9

Deferred tax asset 4.5 4.5

Total assets 356.0 356.0

Trade and other payables (184.7) (184.7)

Interest bearing liabilities (20.7) (20.7)

Provisions (12.9) (13.3)

Other liabilities (5.8) (5.8)

Total liabilities (224.1) (224.5)

Net assets 131.9 131.5

Reserves transferred to profit and loss on sale of businesses 8.5 8.5

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

12 Assets Held for Sale and Discontinued Operations (continued)

Assets held for sale are as follows:

5-Jan-14

$m

30-Dec-12

$m

Assets held for sale – property, plant and equipment

Property, plant and equipment 143.6 182.2

Total assets held for sale – property, plant and equipment 143.6 182.2

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Med

ia R

elea

se

28 February 2014

FIRST HALF PROFIT REPORT AND DIVIDEND ANNOUNCEMENT FOR THE 27 WEEKS ENDED 5 JANUARY 2014

Delivering sustainable profit growth and customer value through focus on our Strategic Priorities,

led by Australian Food and Liquor

Net Profit After Tax of $1,321.7 million, up 14.5%

Earnings Per Share of 106.1 cents, up 13.4%

Net Profit After Tax From Continuing Operations Before Significant Items1 up 6.0%

Key Financial Highlights for the FY14 Half Year

Sales - Total Group sales of $31.8 billion, up 3.8%

- Sales from continuing operations up 6.0%

Earnings Before Interest and Tax (EBIT) - Total Group EBIT of $2,048.0 million, up 11.3%

- EBIT from continuing operations before significant items1 up 5.9%

Net Profit After Tax (NPAT) - Total Group NPAT of $1,321.7 million, up 14.5%

- NPAT from continuing operations before significant items1 up 6.0%

Earnings per Share (EPS) - Total Group EPS up 13.4% to 106.1 cents

- EPS from continuing operations before significant items1 up 4.9%

Dividends - Over $0.8 billion will be returned to shareholders via the fully franked HY14 dividend of

65 cents per share, up 4.8%

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2

Woolworths CEO, Grant O’Brien said: “We are pleased to report a solid profit result for the first half of financial year 2014, with net profit after tax from continuing operations before significant items1 up 6.0% on the previous half year.

“Our focus over the last two years has been to commence the transformation of our business. This result clearly demonstrates the progress we are making against each of our four Strategic Priorities.

“We have delivered 6.8% EBIT growth in our Australian Food and Liquor business, consistent with our priority to ‘extend our leadership in Food and Liquor’, which has been achieved in a highly competitive marketplace.

“We have continued our leadership in price and range, delivering more than $400 million in savings to customers predominantly through our ‘More Savings Every Day’ program.

“The Woolworths Liquor Group again delivered growth across all three formats – Dan Murphy’s (Destination), BWS (Convenience) and The Wine Quarter (Online) and continues to lead the way in innovation.

“In New Zealand, we gained market share in a subdued grocery market and are in the early stages of transforming our Countdown business with the last quarter showing signs of improving momentum.

“We have commenced the transformation of BIG W’s customer offer, replenishment systems and supply chain capabilities. We have much more to do and are focused on delivering profitable growth in the future.

“We are progressing our ambition to be Australia’s most responsible operator of local pubs and our focus on family friendly food offerings has delivered pleasing results.

“Our Home Improvement business continues to grow rapidly and we are improving and adding to our network of stores. We are executing our plan to make Home Improvement a long-term profit contributor for the Group.

“We have been putting in place the enablers for a new era of growth. This will accelerate as we begin our next phase of supply chain enhancements to drive competitive advantage into the future.

“Online has been another highlight as we continue to provide customers with more convenient ways to shop. We exceeded $1 billion of sales ahead of our FY14 target. The acquisition of EziBuy has enhanced our online and direct retailing capabilities, and supports our position as Australasia’s largest domestic online retailer.

“Data driven insights continue to assist with the transformation of our business. Through our investment in Quantium, we can better understand the needs of our customers and deliver a better shopping experience.”

Woolworths Limited Chairman, Ralph Waters, said: “The Board has announced a half year dividend of 65 cents per share, a 4.8% increase, up from 62 cents in the prior year.

“This is a pleasing result for the half year and I am confident that Woolworths is in a good position to continue to reward both its customers and its shareholders into the future.”

Note: This announcement contains certain non-IFRS measures that Woolworths believes are relevant and appropriate to understanding its business. Refer to Appendix One for further information.

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PROGRESS AGAINST STRATEGIC PRIORITIES

In November 2011, Woolworths outlined its Strategic Priorities to deliver future growth and enhance

shareholder value. Good progress has been made against each of these during the FY14 half year:

1. Extend leadership in Food and Liquor

Momentum in Food and Liquor continues with improving comparable sales and EBIT growth.

Increased market share was underpinned by strong volume, customer numbers and trading area

growth

Unbeatable value with improved communication of our value credentials through the ‘More Savings

Every Day’ campaign, reinforcing Woolworths’ price leadership among full range supermarkets.

Average price deflation was 4.1% for the half year

First choice for fresh food extending our leadership in Fresh as we further improve our offer,

supported by our new Jamie Oliver partnership focused on affordable fresh food and encouraging a

healthier Australia

Australia’s leading liquor destination, in-store and online with growth and innovation across all

store formats and online. Dan Murphy’s continues to lead multi-option innovation

Improving comparable sales growth in Countdown New Zealand with the early stages of our

business transformation there showing positive signs and the second quarter delivering the

strongest reported comparable sales growth for the last 18 months

2. Act on our portfolio to maximise shareholder value

BIG W commenced the transformation of its customer offer, replenishment systems and supply

chain capabilities. This transformation is impacting short term sales and profit but will deliver

profitable growth over the medium to long-term

Ambition to be Australia’s best and most responsible hotels through our industry leading hotel and

gaming charter. Commenced the roll out of electronic gaming machine voluntary pre-commitment

functionality

Enhancing our Petrol offer by expanding the availability of diesel, premium fuels and fast flow

pumps. Our improved merchandise offer is delivering strong results

3. Maintain our track record of building new growth businesses

Growing our leadership as Australasia’s largest domestic online retailer with Group Online sales

exceeding $1 billion for the 2013 calendar year, ahead of our FY14 target

Australia’s fastest growing Home Improvement offer with 38 Masters stores trading at the end of

the half. Refreshed Home Timber and Hardware2 company stores are delivering pleasing sales growth

4. Put in place the enablers for a new era of growth

Building on our world class supply chain with detailed planning underway for our next generation

supply chain capability

Driving efficiencies in stores has continued to deliver cost savings across our businesses

Customer insights transforming our business leveraging Quantium to better understand our

customers’ needs. We now have 7.5 million Everyday Rewards and 1.8 million Onecard members

Assembling a world class retail team blending the best local and international talent. We

announced Matt Tyson as the new Managing Director of Home Improvement

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BUSINESS PERFORMANCE

Earnings Before Interest and Tax (EBIT)

($ million)

HY13 (27 weeks)

HY14 (27 weeks)

Change

Continuing Operations (before significant items1) Australian Food and Liquor 1,583.9 1,692.1 6.8% Petrol 71.0 74.0 4.2% Australian Food, Liquor and Petrol 1,654.9 1,766.1 6.7%

New Zealand Supermarkets (NZD) 162.3 164.4 1.3%

New Zealand Supermarkets 124.7 136.8 9.7% General Merchandise3 129.5 120.5 (6.9)% Hotels 140.8 163.9 16.4% Masters (69.1) (71.9) 4.1% Home Timber and Hardware2 10.6 7.5 (29.2)% Home Improvement (58.5) (64.4) 10.1% Central Overheads (56.7) (74.9) 32.1% Group EBIT – Continuing Operations 1,934.7 2,048.0 5.9%

Discontinued Operations (before significant items1) Consumer Electronics – Australia, New Zealand and India 2.5 - n.c4 Group EBIT – Discontinued Operations 2.5 - n.c4

Total Group EBIT (before significant items1) 1,937.2 2,048.0 5.7%

Significant Items1 (before tax) One-off loss on SCA Property Group transaction (32.8) - n.c Net loss on disposal of Consumer Electronics businesses* (63.7) - n.c

Total Group EBIT (after significant items1) 1,840.7 2,048.0 11.3%

Net Profit After Tax (NPAT)

($ million)

HY13 (27 weeks)

HY14 (27 weeks)

Change

Net profit after income tax and non-controlling interests (before significant items1)

Continuing Operations 1,247.2 1,321.7 6.0% Discontinued Operations 1.8 - n.c4 Total Group net profit after income tax and non-controlling interests (before significant items1)

1,249.0

1,321.7

5.8%

Significant Items1 (after tax) One-off loss on SCA Property Group transaction (28.5) - n.c Net loss on disposal of Consumer Electronics businesses* (65.7) - n.c

Total Group net profit after income tax and non-controlling interests (after significant items1)

1,154.8

1,321.7

14.5%

* After reflecting additional sale proceeds in the second half of FY13, the net gain on disposal of the Consumer Electronics businesses in FY13 was $9.9 million before tax ($7.9 million after tax)

1

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GROUP FINANCIAL PERFORMANCE

The 6.0% increase in net profit after tax from continuing operations before significant items1 was a solid

result, supported by growth in EBIT from continuing operations before significant items1 of 5.9%.

Sales from continuing operations were $31.8 billion, an increase of 6.0% on the previous half year. This

result was underpinned by Australian Food and Liquor, reflecting continuing momentum in this business.

Gross profit as a percentage of sales from continuing operations increased 9 bps on the prior half year to

27.04%, reflecting improvements in buying, more effective promotional activity, growth in exclusive

brand ranges and positive changes in sales mix. We have continued to reinvest in lower prices, delivering

greater value to customers as evidenced by continued average price deflation in Australian Food and

Liquor and BIG W as well as low inflation in New Zealand Supermarkets.

Cost of Doing Business (CODB) as a percentage of sales from continuing operations before significant

items1 increased 10 bps on the prior half year to 20.61%. Excluding the non-comparable additional net

costs in HY14 following the SCA Property Group transaction, and the Home Improvement business which

remains in start up phase, CODB as a percentage of sales for continuing operations before significant

items1 decreased 5 bps on the prior half year, which is a strong result in light of a large number of new

stores. Australian Food and Liquor CODB as a percentage of sales remained flat compared to the prior

half year.

EBIT from continuing operations before significant items1 increased 5.9% on the previous half year driven

by a strong result in our Australian Food and Liquor business.

Net financing costs from continuing operations decreased 7.1% on the prior half year due to a reduction

in long term debt following the sale of properties to the SCA Property Group in the 2013 financial year.

NPAT from continuing operations before significant items1 increased 6.0% on the previous half year to

$1,321.7 million, with corresponding EPS up 4.9% to 106.1 cents. Total Group NPAT was up 14.5%.

Closing inventory days for continuing operations increased 0.1 days on the previous year to 38.9 days,

despite new store openings and increased direct global sourcing.

Free cash flow generated by the business was $268.7 million after the payment of dividends and the

acquisition of EziBuy, reflecting the ability of our business to generate strong cash flows whilst continuing

to expand and improve our store network. Cash flow from operating activities before interest and tax

decreased 4.1%. Excluding the impact of differences in the timing of creditor payments relative to the

reporting dates, cash flow from operating activities before interest and tax increased approximately 8.8%.

We have maintained our investment grade credit ratings by Standard & Poor’s (A- since 2001) and

Moody’s (A3 since 2005)5. Our fixed charges cover ratio6 before significant items1 of 3.1 times remains

strong (HY13: 3.0 times) and our cash realisation ratio7 was 110%.

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AUSTRALIAN FOOD, LIQUOR AND PETROL

HY13 (27 weeks)

HY14 (27 weeks)

Change

Sales - Food and Liquor ($ million) 20,488 21,477 4.8% Sales - Petrol ($ million) 3,393 3,665 8.0% Sales - Total ($ million) 23,881 25,142 5.3%

EBIT - Food and Liquor ($ million) 1,583.9 1,692.1 6.8% EBIT - Petrol ($ million) 71.0 74.0 4.2% EBIT - Total ($ million) 1,654.9 1,766.1 6.7%

Funds Employed ($ million) 4,122.0 4,312.8 4.6%

Gross Margin (%) 25.14 25.17 3 bps Cost of Doing Business (%) 18.21 18.15 (6) bps EBIT to Sales (%) 6.93 7.02 9 bps ROFE (%) 40.65 40.89 24 bps

Trading Performance – Australian Food and Liquor (excluding Petrol)

Sales for the half year were $21.5 billion, an increase of almost $1.0 billion or 4.8% on the previous year.

Comparable sales increased 3.0% for the half year, with increased momentum in the second quarter

delivering comparable sales growth of 3.4%.

During the half, we increased market share, customer numbers, basket size, items sold and sales per

square metre. We served on average 21.0 million customers per week, an increase of 3.9% on the

previous half year. Customers continued to benefit from lower average prices as reflected by deflation of

4.1% when the effects of promotions and volumes are included.

The increase in gross margin reflects improvements in buying, more effective promotional activity and

growth in our exclusive brands. This includes the expansion of our exclusive Liquor brands. Much of the

benefit from these initiatives has been reinvested in price to benefit our customers.

Australian Food and Liquor CODB as a percentage of sales remained flat compared to the prior half year.

This was a good result given the large number of new stores which are yet to reach mature trading levels

and ongoing investment in our multi-option business.

Whilst we continued to invest in lower prices, Australian Food and Liquor EBIT of $1,692.1 million

increased 6.8% on the previous half year, with the EBIT margin increasing 15 bps.

We opened 23 Australian Supermarkets (net) during the half year bringing the total to 920, employing an

additional 2,000 people. We opened six Dan Murphy’s bringing the total to 181. We plan to open a

further 14 Supermarkets (net) and six Dan Murphy’s in the 2014 financial year.

Return on Funds Employed (ROFE) for Australian Food, Liquor and Petrol for the half year increased 24

bps, reflecting EBIT growth of 6.7% and continued investment in the roll out of new supermarkets, liquor

outlets and petrol canopies, as well as higher inventory. Closing inventory increased 0.1 days, driven by

new stores, increased direct global sourcing and investment to improve our on-shelf availability.

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Australian Food, Liquor and Petrol (continued)

Progress Against Objectives – Australian Supermarkets

1. First choice for fresh food

We further improved the quality of our Fresh offer, with enhancements to our supply chain

In line with our strategy to be the first choice for fresh food, our Fresh market share is growing

faster than Grocery

We announced a partnership with Jamie Oliver focused on affordable fresh food and encouraging

a healthier Australia

Our roll out of sushi bars and bakeries continued, with a further 40 sushi bars and 49 bakeries

added to our store network. We now have 89 sushi bars and bakeries in 86% of our stores

Customers continue to ask for more organic and free range meat and poultry, leading to strong

growth in these categories

2. Unbeatable value

We improved the communication of our value credentials through ‘More Savings Every Day’

As our key value platform, ‘More Savings Every Day’ delivered savings of more than $400m to

customers over the half, reinforcing our price leadership position among full range supermarkets

Customers benefited from deflation in average prices of 4.1% for the half

Our drive to offer affordable fresh food continues with further price reductions in meat

3. Customer insights transforming our business

Increase in Everyday Rewards members to 7.5 million, an increase of 11% on the prior half year

Together with Quantium, we are working closely with suppliers to leverage our Everyday Rewards

data to deliver insights and better decisions across pricing, ranging, promotions and store layout

We are sending an average of 2.2 million emails and direct mails to customers each week with

targeted Supermarket offers

4. Innovative new offers

A permanent ‘Gold’ range has now been launched, setting a new high standard for own brand

products in quality, innovation and taste

We commenced the roll out of new in-store offers including ‘Food To Go’ and ‘Healthy Lunchbox’

ranges and continued to expand our fresh barista coffee offering

Successful trial of ‘Farmers’ Own’ milk produced in the Manning Valley, New South Wales, will be

extended to 105 stores

We announced new own brand Australian sourcing deals with SPC Ardmona for Select canned

deciduous fruit and Simplot for Select frozen vegetables

5. Multi-option offering customers more flexibility

The number of unique visitors to our online site has more than doubled during the half

We deliver over three million items to customers each week, with home delivery now available to

more than 95% of Australian households

We expanded our Click & Collect network to 188 stores at HY14, including 15 drive-thrus, now

offering same day collection service

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Australian Food, Liquor and Petrol (continued)

Woolworths Liquor Group

Trading Performance

The Woolworths Liquor Group has delivered a strong result for the half year, with good sales growth

across all three channels – Dan Murphy’s (Destination), BWS (Convenience) and The Wine Quarter

(Online). Total sales for the half year (including ALH Group on premise liquor sales) of $4.0 billion

represent an increase of 5.1% on the previous year.

Progress Against Objectives

1. Continue to evolve Dan Murphy’s

We have expanded our footprint as Australia’s premier liquor destination, with six new stores

opened during the half, bringing total stores to 181

We extended our multi-option leadership through the launch of Australia’s favourite liquor App,

with photo recognition technology and the addition of extra delivery options such as ‘Same Day’,

‘Next Day’ and ‘Pick a Day’ delivery

We were the first major Australian retailer to launch Click & Collect nationwide, with sales

through this channel more than doubling in the second quarter

We have implemented a new store operating model which has more customer facing staff

2. Develop the BWS brand and convenience offer

Our rebranding of Woolworths Liquor to BWS in FY13 has created Australia’s most accessible

liquor brand, now with 1,200 stores

We continue to strengthen the BWS brand, benefiting from sponsorship of ‘The Ashes’ and

‘Summer of Cricket’ and the launch of the ‘Today’s Special’ brand marketing campaign

We continue to make progress in tailoring our ranges around shopper occasions

3. Increase own and exclusive brand penetration through Pinnacle Liquor

Pinnacle Liquor continues to grow as our own and exclusive product and brand marketing arm

We launched new and innovative products, with a pleasing customer response

4. Leadership in Digital and Direct via The Wine Quarter

We have established a digital and direct business centre of excellence employing approximately

650 people, leveraging Cellarmasters’ direct marketing capabilities

Langton's continues to deliver strong sales growth, reinforcing its position as Australia's leading

ultra-fine wine business

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Australian Food, Liquor and Petrol (continued)

Petrol

Trading Performance

Petrol sales for the half year, including Woolworths/Caltex alliance sites, were $3.7 billion, an increase of

8.0% on the previous year. Comparable sales (dollars) increased 6.4%. Average unleaded fuel sell prices

for the half year were 150.2 cpl (HY13: 141.3 cpl).

Petrol volumes increased 0.6% and comparable volumes decreased 0.6% for the half year. Whilst

competitor activity was focused on ongoing increased fuel discounts, Woolworths’ customers continue to

be rewarded through targeted fuel offers and enhanced Supermarket offers. This impacted volumes

during the half but provided positive benefits to the business overall.

Total merchandise sales increased 9.8% and comparable merchandise sales increased 6.4% for the half

year reflecting our improved convenience offer and more effective promotional activity, despite lower

fuel volumes.

Petrol EBIT of $74.0 million increased 4.2% on the previous half year assisted by the continuing shift

towards premium unleaded and diesel fuels, and stronger merchandise sales. CODB as a percentage of

sales decreased on the prior year despite costs associated with new petrol canopies.

Progress Against Objectives

1. Provide customers with a compelling fuel offer

We continue to invest in forecourt improvements to provide customers with better access to

diesel and premium fuels as well as fast flow fuel pumps

We rebranded 32 sites to the new Woolworths signage during the half and 52 canopies and

forecourts were refreshed to improve the customer experience

2. Accelerate merchandise sales

New categories and products are adding incremental sales as part of our strong focus on

improving our convenience offer

3. Increase our network profile

We opened 14 petrol sites (net) during the half, taking the total number of Woolworths owned

sites to 496. Together with Caltex/ Woolworths alliance sites, our customers now have access to

627 sites across the country

We plan to open a further five sites (net) in the 2014 financial year

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NEW ZEALAND SUPERMARKETS

$NZD Before Significant Items1

HY13 (27 weeks)

HY14 (27 weeks)

Change8

Sales ($ million) 2,944 3,020 2.6% EBIT ($ million) 162.3 164.4 1.3% Funds Employed ($ million) 3,056.0 3,137.7 2.7% Gross Margin (%) 23.28 23.25 (3) bps Cost of Doing Business (%) 17.77 17.81 4 bps EBIT to Sales (%) 5.51 5.44 (7) bps ROFE (%) 5.17 5.17 - bps

Trading Performance

New Zealand Supermarkets’ sales for the half year were NZ$3.0 billion, an increase of 2.6%8 on the

previous year (15.2% increase in AUD). Comparable sales for the half increased 0.7%8 underpinned by

successful promotional activity and strong results in Fresh. We continued to increase market share,

customer numbers and items sold reflecting the relevance of our offer and success of promotional

activity.

The result for the second quarter was particularly pleasing, delivering the strongest quarterly comparable

sales growth seen in the last 18 months and the early stages of our Countdown business transformation is

showing signs of improving momentum. This was delivered despite the subdued grocery market

conditions, highly competitive marketplace and price deflation across a number of key categories.

Gross margin decreased 3 bps8 on the previous half year, impacted by a higher level of promotional

activity, particularly in Longlife. We have continued to increase our competitiveness in the market and

have lowered shelf prices on a range of products, including through our ‘Price Lockdown’ program which

delivers customers long-term price reductions on a range of their favourite groceries.

CODB as a percentage of sales before significant items1 increased 4 bps8 on the previous half year,

attributable to additional rental expense (net of depreciation savings) following the sale of properties to

the SCA Property Group in FY13. Excluding these costs, CODB as a percentage of sales before significant

items1 decreased 22 bps8, reflecting strong cost management across the business with cost savings

gained through improved productivity in distribution centres as well as in support offices.

EBIT before significant items1 increased 1.3%8 to NZ$164.4 million, with the EBIT margin before significant

items1 down 7 bps8 on the previous half year, impacted by the additional rental expense (net of

depreciation savings) following the sale of properties to the SCA Property Group in FY13. Excluding this,

EBIT before significant items1 increased approximately 6.0%8 and EBIT margin before significant items1

was up 19 bps8 on the previous half year.

ROFE was in line with the prior half year8, however was impacted by the timing of creditor payments

relative to the reporting dates. Excluding this, ROFE increased approximately 30 bps8 on the prior half

year, reflecting EBIT growth, lower inventory and the sale of four remaining properties to the SCA

Property Group, offset by continued investment in new stores and refurbishments.

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New Zealand Supermarkets (continued)

Progress Against Objectives

1. Customer value and innovative offers

The launch of ‘Price Lockdown’, a range of everyday lower price products, supported by strong in-

store communication, has been well received by customers

Produce sales growth outperformed overall growth with our focused grower program, supported

by strong in-store execution, maximising seasonal sales opportunities

2. Leverage local sourcing

Our preference in New Zealand is to source locally as it is important to our customers and

supports the local communities in which we operate

96% of sales are sourced from suppliers that are owned or have a base in New Zealand, with 70%

of own brand sales from locally sourced products

We work with 1,200 New Zealand suppliers, including hundreds of local farmers and growers

3. Multi-option

Sales from countdown.co.nz, New Zealand’s leading online food site continued to deliver pleasing

results, with double digit sales growth for the half year

We are serving 99% of New Zealand’s population through 52 fulfilment stores

4. Supply chain

Supply chain efficiencies were achieved as a result of the reconfigured national and regional

distribution centre operations structure, with supply chain costs decreasing by 6 bps 8 as a

percentage of sales for the half year

In-store product availability remained strong during the half

5. Grow Countdown and franchise network

During the half, we opened two new Countdown stores, bringing the total to 168 with three (net)

stores to be completed in the second half

The total number of franchise stores is now 56, with three new stores to open in the second half

Our franchisees are continuing to invest in their stores with 29% of the franchise network now

trading in the new formats, compared to 16% in the prior year

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GENERAL MERCHANDISE3

HY13 (27 weeks)

HY14 (27 weeks)

Change

Sales ($ million) 2,447 2,452 0.2%

EBIT ($ million) 129.5 120.5 (6.9)%

Funds Employed ($ million) 709.8 1,092.7 53.9%

Gross Margin (%) 31.47 32.90 143 bps

Cost of Doing Business (%) 26.18 27.99 181 bps

EBIT to Sales (%) 5.29 4.91 (38) bps

ROFE (%) 16.11 11.56 (455) bps

Trading Performance

Sales for the half year were $2.5 billion, an increase of 0.2% on the previous year, impacted by the

previously advised transformation of BIG W and differences in the timing of the BIG W annual Toy Sale

relative to the reporting date9. Trading conditions continue to be challenging with strong competition,

ongoing price deflation (estimated to be 4.1% for the half) and increased promotional activity, leading to

a disappointing profit result for the half.

Excluding the timing impact of the Toy Sale9, sales growth was approximately 2.0% for the half. Stronger

trading departments in BIG W included Toys & Sporting, Home, Childrenswear, Women’s Apparel and

Office.

Comparable store sales decreased 2.3% for the half year9. Excluding categories which are being

rationalised as part of the business transformation, comparable sales for the half year were flat.

The 143 bps gross margin improvement reflects better buying, shifts in the sales mix and the acquisition

of EziBuy. This was achieved despite higher levels of clearance activity in the categories being

rationalised.

CODB as a percentage of sales increased 181 bps on the prior half year, reflecting new stores yet to reach

maturity, the EziBuy acquisition and lower sales growth.

As a result, EBIT of $120.5 million decreased 6.9% on the previous half year.

ROFE decreased 455 bps, however was impacted by the timing of creditor payments relative to the

reporting dates. Excluding this, ROFE decreased approximately 250 bps, and includes the acquisition of

EziBuy as well as the continued roll out and refurbishment of BIG W stores. BIG W closing inventory

decreased 2.3 days, driven by a focus on stock management.

We opened three new BIG W stores during the half year, including two new stores in the second quarter,

bringing the total to 181. We plan to open one further store in the 2014 financial year.

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General Merchandise (continued)

Progress Against Objectives

1. Transforming our business for the future

We commenced our transformation of BIG W, focusing on categories of high customer

importance which will provide medium to long-term profitable growth

Our hardgoods transformation will encompass significant change as we rationalise and make way

for new and expanded categories

We are implementing first stage changes across our store network (50 stores in the first half, 82

planned for the second half) to expand our core offer in categories such as Toys and Footwear

We are also focused on enhancing the BIG W replenishment systems and supply chain capabilities

We implemented a new store management structure to improve the alignment of our in-store

leadership to store activities and our strategy

2. Strong growth in brands that win on value everyday

We have achieved pleasing growth in Apparel with strong results delivered through exclusive

brands such as ‘Peter Morrissey’ and the ‘Michelle Bridges’ and ‘Guy Leech’ active wear ranges.

Our new ‘Lee Cooper’ range is also showing pleasing early results

Our Home department also performed well, particularly the Kitchenware and Home Storage

categories, with customers enjoying the benefits of our exclusive and branded product ranges

3. Realising our multi-option ambition

We are leveraging EziBuy’s world-class distribution capabilities and expertise in direct-to-

consumer retailing to enhance our multi-option offer

Our eBooks offer was launched in September with over 40,000 titles downloaded in the first half

We implemented Click & Collect across our entire network in November

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HOTELS

HY13

(27 weeks)

HY14

(27 weeks)

Change

Sales ($ million) 759 788 3.8%

EBIT ($ million) 140.8 163.9 16.4%

Gross Margin (%) 82.29 82.75 46 bps

Cost of Doing Business (%) 63.74 61.95 (179) bps

EBIT to Sales (%) 18.55 20.80 225 bps

Trading Performance

Hotel sales for the half year were $788 million, an increase of 3.8% on the previous year. Comparable

sales for the half year increased 2.1%.

Trading conditions are a challenge at present, especially in Bars and Gaming. Our Food offer remains a

focus and we are seeing solid results as we concentrate on providing value meals in a family friendly

setting.

Gross margin increased 46 bps on the prior half year, assisted by the Victorian gaming regulatory changes

which cycled in August and provided an uplift to sales and profitability in the prior year and part of the

first quarter.

CODB as a percent of sales decreased 179 bps on the prior half year attributable to strategic initiatives to

improve efficiency in venues and the cycling of business acquisition costs in the prior year.

As a result, EBIT increased 16.4% on the previous half year to $163.9 million. Results from the hotels

acquired as part of the Laundy transaction in the prior year were pleasing.

A change to tax rates in Victoria applying to revenues from electronic gaming machines was recently

announced. The changes will apply from 1 April 2014 and will impact EBIT for the second half of FY14 by

approximately $6 million and FY15 by $20 – $25 million.

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Hotels (continued)

Progress Against Objectives

1. To be Australia’s most responsible operator of local pubs

We have an industry leading hotel and gaming charter underpinning our commitment to

responsible service

We have commenced the task of introducing voluntary pre-commitment functionality on all

gaming machines ahead of any planned state legislation, allowing customers to monitor their play

and set time or spend limits

We continue to promote the message of responsible gambling, working closely with local

gamblers help agencies as well as the ALH Responsible Gambling Ambassador program, delivering

both employee education and customer awareness

2. Grow our network

We continue to grow our Hotel network through targeted acquisitions. We opened one hotel

during the half year bringing the total number of venues to 327. Four additional venues are

currently planned for FY14

Ongoing growth in our hotel network will support additional retail outlets. An additional nine

BWS and four Dan Murphy’s associated with our hotels are planned to open during FY14

3. To evolve in meeting customer needs

Our family friendly food offers are being complemented by the addition of children’s play areas

We implemented a program to expand the depth of our bar ranges to cater for the evolving

demand for more premium products, as well as selectively adding branded food operations

We are improving our online presence, with mobile enabled venue websites, special online

offers, an online booking service for accommodation and advertising integrated into social media

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HOME IMPROVEMENT

($ million)

HY13

(27 weeks)

HY14

(27 weeks)

Change

Sales - Masters 263 393 49.4%

Sales - Home Timber and Hardware2 374 403 7.8%

Sales - Total 637 796 25.0%

EBIT - Masters (69.1) (71.9) 4.1%

EBIT - Home Timber and Hardware2 10.6 7.5 (29.2)%

EBIT - Total (58.5) (64.4) 10.1%

Trading Performance

Home Improvement sales for the half year were $796 million, an increase of 25.0% on the previous year.

Masters sales for the half year were $393 million, up 49.4% on the previous year. We opened seven new

stores during the half, all of which were on or ahead of schedule, giving us 38 stores trading at the end of

the period. We remain on track to open 18 Masters stores this financial year.

Our business remains in its development phase, with our stores having traded, on average, for 15

months. Approximately half of the stores opened over the last 12 months are in regional and future

growth areas which will take longer to mature and will have sales below the long term group average.

Increasing sales per store remains a key focus and driver of our path to profitability.

The Masters EBIT loss was $71.9 million for the half year. We remain focused on executing our plan to

achieve breakeven in Masters during FY16. Specifically, increasing sales per store, improving gross

margin, driving efficiencies in store and increasing fractionalisation of costs in the distribution and

support network as sales levels increase.

Home Timber and Hardware2 sales for the half year were $403 million, up 7.8% on the previous year.

Recently refurbished company stores are achieving pleasing growth, with further refurbishments planned

for the second half.

We were pleased to recently announce the appointment of Matt Tyson as the new Managing Director of

our Home Improvement business. Matt will bring extensive international and business development

experience to our Home Improvement team as we enter the next phase of development for this business.

The relationship with our Joint Venture partner Lowe’s remains strong. They have again extended the

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Home Improvement (continued)

Progress Against Objectives

1. Improve sales performance

We have increased the frequency of returning customer visits through tailored offers

The strong trading of our Kitchens, Appliances and Gardening segments demonstrates that

customers are finding our differentiated offer appealing

We were recognised as Australia’s Best New Online Retailer at the 2013 Online Retail Industry

Awards

We have focused on trade and serious DIY customers at Home Timber and Hardware with the ‘Go

Where the Tradies Go’ brand campaign driving an increase in store visitations and trade sales

Home Timber and Hardware was recently awarded ‘Hardware Store of the Year’ at the Roy

Morgan Customer Satisfaction Awards

2. Enhance in-store offer

Our ‘Masters Best Price Guarantee’ continues to resonate well with customers. We will beat all

prices on identical items by 10%, regardless of whether bought in-store or online

We have expanded our range of brands available exclusively in Masters

We are working in partnership with strategic vendors to introduce innovative products into the

Australian market

3. Continue to drive cost efficiencies

We have made significant progress in reducing our days stock on hand in Masters through supply

chain improvements and better management of inventory as our store footprint expands

We have achieved pleasing results from cost saving initiatives in stores, whilst ensuring customer

service levels are not compromised

We commenced the expansion of our Home Timber and Hardware distribution centre in New

South Wales which will deliver cost savings

4. Successfully roll out new Masters stores

We opened seven new Masters stores, three ahead of our plan for the half

We remain on track to open 18 Masters stores in FY14

5. Continue to build the team

We announced the appointment of Matt Tyson as Managing Director of Home Improvement

We continue to invest in training for employees, enhancing our reputation for superior customer

service

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OVERHEADS, CASH FLOW AND BALANCE SHEET

Central Overheads

Central Overheads were $74.9 million for the half year (HY13: $56.7 million). The increase on the prior

year is primarily attributable to additional (net) costs in our property division following the sale of

properties to the SCA Property Group during the prior half year.

Balance Sheet and Cash Flow

Our balance sheet and cash flow remain strong, with key balance sheet movements relative to the prior

half year explained as follows:

Inventory increased 6.2% on the previous half year, driven by new store openings, in particular,

33 Australian Supermarkets (net) and 13 Masters stores since HY13 and increased direct global

sourcing. Closing inventory increased 0.1 days to 38.9 days. Average inventory increased 2.9 days

due to the Masters store roll out, increased bulk wine holdings in our Liquor business and

increased direct global sourcing. Excluding Home Improvement and incremental global sourced

inventory, average inventory increased 0.7 days

Working capital was impacted by differences in the timing of creditor payments relative to the

reporting dates (impact approximately $700 million). Adjusting for this, working capital was in

line with the prior half year

Fixed assets and investments increased $970.8 million to $9,991.0 million, reflecting ongoing

property development and capital expenditure, with 139 new stores added to the network and

96 refurbishments undertaken since the prior half year. This was offset by ongoing depreciation

Intangible assets increased $642.8 million to $6,280.4 million, reflecting the acquisition of EziBuy

as well as increased intangible assets in our New Zealand Supermarkets business attributable to

the stronger New Zealand dollar

Net repayable debt (which includes cash, borrowings, hedge assets and liabilities) increased

$658.2 million to $3,532.9 million, impacted by differences in the timing of creditor payments

relative to the reporting dates and the acquisition of EziBuy

Other financial liabilities increased $132.8 million to $796.3 million, primarily reflecting an

increase in the Lowe’s put option in our Home Improvement business to $675.4 million

Shareholders’ equity for the Group increased $1,494.3 million to $9,827.8 million primarily

reflecting profits generated by the Group offset by the payment of dividends

ROFE for continuing operations before significant items1 was 14.9%, a decrease of 87 bps.

Excluding the impact of differences in the timing of creditor payments relative to the reporting

dates and the continuing investment in our Home Improvement business, ROFE increased 33 bps

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Overheads, Cash Flow and Balance Sheet (continued)

Balance Sheet and Cash Flow (continued)

Key cash flow movements relative to the prior half year are explained as follows:

Free cash flow generated by the business was $268.7 million after the payment of dividends and the

acquisition of EziBuy, reflecting the ability of our business to generate strong cash flows whilst continuing

to expand and improve our store network.

Cash flow from operating activities before interest and tax decreased 4.1% on the prior half year,

impacted by the timing of creditor payments relative to the reporting dates. Excluding this impact, cash

flow from operating activities before interest and tax increased approximately 8.8%.

Net interest paid of $172.0 million for the half year was down 9.7% due to a reduction in long term debt

following the sale of properties to the SCA Property Group in the 2013 financial year.

Tax payments increased to $564.8 million for the half year (HY13: $507.8 million) due to higher tax

instalments across the Group. Tax refunds of more than $84 million relating to the lodgement of the

Group’s 2013 tax returns will be received in the second half of the 2014 financial year.

Cash used in investing activities was $1,076.2 million, an increase of $732.6 million on the prior half year,

which included $764.0 million of proceeds from the sale of property to the SCA Property Group. HY14

included the acquisition of EziBuy and ongoing capital expenditure.

Expenditure on property development of $324.6 million was lower than the prior half year (HY13: $387.1

million) given a decrease in the level of development activity.

Expenditure on property, plant and equipment of $506.8 million was lower than the prior half year (HY13:

$522.3 million) and included our continued investment in new stores and refurbishments as well as

investments in our multi-option and data analytics capabilities.

Cash contributions from Lowe’s in relation to our Home Improvement business were $60.0 million, a

decrease compared to the prior year (HY13: $116.0 million).

Proceeds from share issues of $33.7 million were lower than the prior year (HY13: $182.1 million) as a

result of fewer employee options exercised under long term incentive plans given the transition by the

Group to the use of performance rights, which do not have an exercise price.

We have maintained our investment grade credit ratings by Standard & Poor’s (A- since 2001) and

Moody’s (A3 since 2005)5. Our fixed charges cover ratio6 before significant items1 of 3.1 times remains

strong (HY13: 3.0 times) and our cash realisation ratio7 was 110%. For

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CAPITAL MANAGEMENT

Capital Management

The payment of the October 2013 and proposed April 2014 dividends will return $1.7 billion and $0.7

billion in franking credits to shareholders. Woolworths expects that after these events, there will be

approximately $1.8 billion of franking credits available for future distribution.

Since July 2001, more than $14.8 billion has been returned to shareholders through dividends (including

the interim dividend for the 2014 half year), on-market and off-market share buy backs and the in-specie

distribution on divestment of the SCA Property Group.

There was no share buy back activity during the half year and none is anticipated in the second half of

FY14.

Debt Maturities

There are no maturities of debt in the immediate term, with the exception of an A$580 million tranche of

a revolving syndicated bank loan facility which matures in October 2014. This facility is currently undrawn

and Woolworths has adequate alternative undrawn committed bank loan facilities to meet its

requirements.

At the end of the half year, Woolworths had $3.2 billion in undrawn bank loan facilities.

Property Sales Program

Woolworths is generally not a long-term holder of property assets and will continue its strategy of

divesting property assets as appropriate market opportunities arise.

On a recurring basis, the SCA Property Group transaction has added additional net costs representing

additional rental expense and reduced specialty rental income, offset by lower depreciation and

outgoings expenses and lower net interest costs. As anticipated, this transaction is forecast to reduce

reported EPS for FY14 by less than 1%.

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Defined Plans to Continue Space Roll Out

Space roll out is supported by detailed plans for the next 3 – 5 years identifying specific sites.

Net Store

Openings in HY14

(incl. acquisitions)

Long Term Target (Net)

Australian Supermarkets 23 20 – 30 new Supermarkets per annum and

c.3%+ space growth

37 planned for FY14

New Zealand Supermarkets

Countdown

Franchise Stores

2

1

3 – 5 new Supermarkets per annum

5 planned for FY14

4 planned for FY14

Dan Murphy’s 6 10 – 15 new stores per annum

12 planned for FY14

BWS 8 6 – 10 new stores per annum

9 planned for FY14

Petrol 14 Grow to support the Supermarket new store

strategy

19 planned for FY14

BIG W 3 2 – 5 new stores per annum

4 planned for FY14

EziBuy 4 Newly acquired business

Hotels (ALH Group) 1 Acquire as appropriate opportunities arise

Home Improvement 7* 18 Masters stores in FY14

* Represents seven Masters stores

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OUTLOOK

Woolworths remains well positioned in its market segments and has a strong and sustainable business

model.

We previously provided guidance for FY14 net profit after tax from continuing operations to grow in the

range of 4% - 7% (on a normalised 52 week basis excluding significant items).

Whilst some of our businesses continue to experience challenging trading conditions, we have seen good

progress against our Strategic Priorities which have delivered sustainable profit growth for the half year.

We have revised our previous guidance and now expect net profit after tax from continuing operations to

grow in the range of 5% - 7% (on a normalised 52 week basis excluding significant items), subject to no

significant deterioration in trading conditions.

- Ends -

For further information contact: Media Claire Kimball, Corporate Communications 0432 696 650 Investors and Analysts David Marr, Chief Financial Officer (02) 8885 1105

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Profit and Loss for the 27 weeks ended 5 January 2014

GROUP SALES

HY13 (27 weeks)

($m)

HY14 (27 weeks)

($m) Change

Continuing Operations

Australian Food and Liquor 20,488 21,477 4.8% Petrol 3,393 3,665 8.0% Australian Food, Liquor and Petrol 23,881 25,142 5.3%

New Zealand Supermarkets (NZD) 2,944 3,020 2.6% New Zealand Supermarkets 2,313 2,665 15.2% General Merchandise

3 2,447 2,452 0.2%

Hotels 759 788 3.8% Masters 263 393 49.4% Home Timber and Hardware

2 374 403 7.8%

Home Improvement 637 796 25.0% Group Sales – Continuing Operations 30,037 31,843 6.0% Group Sales – Continuing Operations (excl Petrol) 26,644 28,178 5.8%

Discontinued Operations Group Sales – Discontinued Operations

i 642 - n.c

4

Total Group Sales 30,679 31,843 3.8%

GROUP PROFIT

Continuing Operations (before significant items1)

Earnings before interest, tax, depreciation, amortisation and rent (EBITDAR) 3,290.2 3,544.7 7.7% Rent (867.7) (973.9) 12.2% Earnings before interest, tax, depreciation and amortisation (EBITDA) 2,422.5 2,570.8 6.1% Depreciation and amortisation (487.8) (522.8) 7.2% Earnings before interest and tax (EBIT) 1,934.7 2,048.0 5.9% Net financial expenses

ii (151.4) (140.7) (7.1)%

Income tax expense (530.9) (572.9) 7.9% Net profit after income tax 1,252.4 1,334.4 6.5% Non-controlling interests (5.2) (12.7) 144.2% Net profit from continuing operations after income tax and non-controlling interests 1,247.2 1,321.7 6.0%

Discontinued Operations (before significant items1)

Net profit from discontinued operations after income tax i

1.8 - n.c4

Total Group net profit after income tax and non-controlling interests before significant items

1 1,249.0 1,321.7 5.8%

Significant Items1 (after income tax)

One-off loss on SCA Property Group transaction (28.5) - n.c Net loss on disposal of Consumer Electronics businesses* (65.7) - n.c

Total Group net profit after income tax, non-controlling interests and significant items

1 1,154.8 1,321.7 14.5%

* After reflecting additional sale proceeds in the second half of FY13, the net gain on disposal of the Consumer Electronics businesses in FY13 was $9.9 million before tax ($7.9 million after tax)

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Profit and Loss for the 27 weeks ended 5 January 2014 (continued)

HY13 (27 weeks)

($m)

HY14 (27 weeks)

($m) Change MARGINS – Continuing Operations (before significant items

1)

Gross Profit (%) 26.95 27.04 9 bps Cost of Doing Business (%) 20.51 20.61 10 bps EBIT (%) 6.44 6.43 (1) bps Weighted average ordinary shares on issue (million)

1,233.3 1,246.1 1.0%

Ordinary earnings per share (cents) – continuing operations before significant items

1

101.1

106.1

4.9%

Diluted earnings per share (cents) – continuing operations before significant items

1

100.8

105.6

4.8%

Ordinary earnings per share (cents) – total Group 93.6 106.1 13.4% Diluted earnings per share (cents) – total Group 93.3 105.6 13.2% Interim dividend per share (cents)

iii

62

65

4.8%

i Discontinued operations represents the Consumer Electronics businesses in Australia, New Zealand and India which were divested during the second quarter of the 2013 financial year

ii Net financial expenses – Continuing Operations

Interest expense (197.0) (179.0) (9.1)% Less interest capitalised 41.5 40.0 (3.6)% Net interest expense (155.5) (139.0) (10.6)% Dividend income 2.9 2.9 - Foreign exchange gain/(loss) 1.2 (4.6) (483.3)% Net financial expenses – Continuing Operations (151.4) (140.7) (7.1)% iii

Interim 2014 dividend payable on 24 April 2014 will be fully franked at 30%

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Group Balance Sheet as at 5 January 2014

FY13 30 June 2013

($m)

HY13 30 Dec 2012

($m)

HY14

5 Jan 2014 ($m)

Change HY14/HY13

Continuing Operations

Inventory 4,205.4 4,498.9 4,779.8 6.2%

Trade Payables i (4,080.0) (5,363.0) (4,809.7) (10.3)%

Net Investment in Inventory 125.4 (864.1) (29.9) (96.5)% Receivables 985.2 1,032.0 990.4 (4.0)% Other Creditors (3,086.1) (3,090.3) (3,191.2) 3.3% Working Capital (1,975.5) (2,922.4) (2,230.7) (23.7)% Fixed Assets and Investments 9,564.8 9,020.2 9,991.0 10.8% Intangible Assets 5,784.3 5,637.6 6,280.4 11.4% Total Funds Employed 13,373.6 11,735.4 14,040.7 19.6% Net Tax Balances 425.2 406.1 386.6 (4.8)% Net Assets Employed 13,798.8 12,141.5 14,427.3 18.8% Net Repayable Debt (3,746.9) (2,874.7) (3,532.9) 22.9%

Other Financial Liabilities ii (751.4) (663.5) (796.3) 20.0% Net Assets – Continuing Operations 9,300.5 8,603.3 10,098.1 17.4% Net Assets – Discontinued Operations - - - n.c4 Total Net Assets 9,300.5 8,603.3 10,098.1 17.4% Non-controlling Interests 272.1 269.8 270.3 0.2% Shareholders’ Equity 9,028.4 8,333.5 9,827.8 17.9% Total Equity 9,300.5 8,603.3 10,098.1 17.4% Key Ratios – Continuing Operations before significant items1

Closing Inventory Days (based on COGS) 38.8 38.9 0.1 days

Closing Creditor Days (based on sales) i 53.2 47.5 (5.7) days

Return on Average Funds Employed (ROFE) iii 15.8% 14.9% (87) bps

i Trade payables were impacted by the timing of creditor payments relative to the reporting date (impact of approximately $700 million). Excluding this, closing creditors would be down 1.3 days on the previous half year

ii Other financial liabilities primarily represents the put option held by Lowe’s in the Home Improvement business and the ALH gaming entitlement liability resulting from the FY13 changes to the Victorian gaming regulations

iii For comparability, this ratio excludes Consumer Electronics Australia, New Zealand and India. Excluding the impact of differences in the timing of creditor payments relative to the reporting dates and the continuing investment in our Home Improvement business, ROFE increased 33 bps

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Group Cash Flow for the 27 weeks ended 5 January 2014

HY13 (27 weeks)

($m)

HY14 (27 weeks)

($m) Change

EBITDA – continuing operations before significant items1 2,422.5 2,570.8 6.1% EBITDA – discontinued operations before significant items1 2.5 - n.c4 Significant items1 (before tax) (96.5) - n.c EBITDA – Total 2,328.5 2,570.8 10.4% Net (increase) in inventory (890.6) (511.2) Net increase in accounts payable 1,387.5 669.0 Net change in other working capital and non-cash 74.6 51.9 Cash from Operating Activities before interest and tax 2,900.0 2,780.5 (4.1)% Net interest paid (including cost of Woolworths Notes) (190.4) (172.0) Tax paid (507.8) (564.8) Total cash provided by Operating Activities 2,201.8 2,043.7 (7.2)% Proceeds from the sale of property to the SCA Property Group 764.0 12.2 Proceeds from the sale of subsidiaries and property, plant and equipment 62.3 73.1 Payments for the purchase of businesses (201.6) (337.7) Payments for property, plant and equipment – property development (387.1) (324.6) Payments for property, plant and equipment – other (522.3) (506.8) Payments for intangible assets (41.0) (20.6) (Advances)/ repayments of property related receivables (20.8) 25.3 Dividends received 2.9 2.9 Total cash used in Investing Activities (343.6) (1,076.2) 213.2% Lowe’s cash contributions (Home Improvement) 116.0 60.0 Free Cash Flow 1,974.2 1,027.5 Proceeds from share issues / other 182.1 33.7 Dividends paid (including to non-controlling interests) (729.8) (792.5) Free Cash Flow after equity related Financing Activities 1,426.5 268.7

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Appendix One

ASIC Regulatory Guide 230 Disclosing non-IFRS financial information

In December 2011 ASIC issued Regulatory Guide 230. To comply with this Guide, Woolworths is required

to make a clear statement about the non-IFRS information included in the First Half Profit Report and

Dividend Announcement (‘Profit Announcement’) for the 27 weeks ended 5 January 2014.

In addition to statutory report amounts, the following non-IFRS measures are used by management and

the directors as the primary measures of assessing the financial performance of the Group and individual

segments.

Non-IFRS measures used in describing the business performance include:

Earnings before interest and tax (EBIT)

Earnings before interest, tax, depreciation and amortisation (EBITDA)

Earnings before interest, tax, depreciation, amortisation and rent (EBITDAR)

Fixed charges cover ratio

Cost of doing business

Comparable sales

Non-IFRS measures used in describing the balance sheet and cash flow statement include:

Funds employed

Cash flow from operating activities before interest and tax

Free cash flow

Free cash flow after equity related financing activities

Cash realisation ratio

At times, the above items are used separately for continuing and discontinued operations as well as for

the Group. They may also be referred to before significant items1.

The directors consider that these performance measures are appropriate for their purposes and present

meaningful information on the underlying drivers of the continuing business after announcing the exit

from the Consumer Electronics market segment and completing the SCA Property Group transaction.

Many of the measures used are common practice in the industry within which Woolworths operates.

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Appendix One (continued)

The Profit Announcement has not been audited in accordance with Australian Auditing Standards.

The following table provides a reconciliation of EBIT and NPAT before significant items1 to the statutory

statement of profit or loss.

HY13 (27 weeks)

($m)

HY14 (27 weeks)

($m) EBIT Group EBIT – Continuing Operations before significant items1 1,934.7 2,048.0 Other items included in statutory EBIT: One-off loss on SCA Property Group transaction (before tax) (32.8) - Statutory EBIT – Continuing Operations 1,901.9 2,048.0 NPAT Profit after income tax and non-controlling interests before significant items1 – Continuing Operations 1,247.2 1,321.7 Other items included in statutory NPAT: One-off loss on SCA Property Group transaction (after tax) (28.5) - Statutory profit attributable to equity holders of the parent entity – Continuing Operations 1,218.7 1,321.7 Profit after income tax and non-controlling interests before significant items1 – Discontinued Operations 1.8 - Other items included in statutory NPAT: Net loss on disposal of Consumer Electronics businesses (after tax) (65.7) - Statutory profit attributable to equity holders of the parent entity – Discontinued Operations (63.9) - Statutory profit attributable to equity holders of the parent entity 1,154.8 1,321.7

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Appendix Two

Five Year Store and Trading Area Analysis 2014 2013 2012 2011 2010

Half Year Ended 5 January 2014 HALF FULL FULL FULL FULL

STORES (number) YEAR YEAR YEAR YEAR YEAR

NSW & ACT 278 271 262 255 248

QLD 218 209 203 194 189

VIC 226 221 214 203 200

SA & NT 79 78 78 76 74

WA 88 88 85 83 83

TAS 31 30 30 29 29

Supermarkets in Australia i 920 897 872 840 823

New Zealand Supermarkets ii 168 166 161 156 152

Total Supermarkets 1,088 1,063 1,033 996 975

Thomas Dux 11 11 11 11 11

Freestanding Liquor (incl. Dan Murphy’s) 345 339 329 305 281

ALH Retail Liquor Outlets 534 526 507 488 480

Caltex/WOW Petrol 131 131 132 132 132

Woolworths Petrol – Australia 496 482 467 449 429

Woolworths Petrol/Convenience – New Zealand - - - - 22

Total Food, Liquor and Petrol 2,605 2,552 2,479 2,381 2,330

BIG W 181 178 172 165 161

Dick Smith - - - 390 394

Tandy - - - 4 22

EziBuy 4 - - - -

Total General Merchandise Division 185 178 172 559 577

Hotels (includes clubs) 327 326 294 282 284

Home Timber and Hardware (Retail) 2,iii

27 26 21 19 8

Masters 38 31 15 - -

Total Continuing Operations 3,182 3,113 2,981 3,241 3,199

Discontinued Operations (Dick Smith and Tandy) - - 348 - -

Total Group 3,182 3,113 3,329 3,241 3,199

Wholesale customer stores

Dick Smith - - - 3 18

Progressive 56 55 54 51 54

Croma (Consumer Electronics India) - - 77 64 50

Home Timber and Hardware (Wholesale) 2 485 490 518 543 581

Statewide Independent Wholesale 220 220 220 220 220

Total wholesale customer stores 761 765 869 881 923

Trading Area (sqm)

Supermarkets Division – Australia 2,482,495 2,413,527 2,318,756 2,202,620 2,127,195

Supermarkets Division – New Zealand iv

377,525 372,373 351,744 333,274 325,256

General Merchandise Division v

1,038,158 1,016,086 1,107,732 1,086,082 1,061,934

Store Movements July 13 – December 13 i Australian Supermarkets

ii New Zealand Supermarkets

New Stores – incremental 26 2

Closures – permanent (3) -

Net New Stores 23 2 iii

HY14 includes one additional store not previously included in store numbers iv Excludes Gull and franchise stores v Includes BIG W, EziBuy, Dick Smith and Tandy in the periods these businesses were owned by Woolworths

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Endnotes

n.c – not comparable 1 There were no significant items in HY14. Significant items in HY13 include the following:

Continuing Operations One-off loss associated with SCA Property Group transaction

In HY13, a one-off loss of $32.8 million before tax ($28.5 million after tax) was incurred on the sale of assets to the SCA Property Group. This was in line with the loss anticipated at the time the transaction was announced. The loss primarily represents provisions for rental guarantees provided by Woolworths in relation to specialty leasing risk. Woolworths will provide a rental guarantee for a period of two years over specialty tenancies vacant as at the Implementation Date until they are first let for properties in the Completed Portfolio and for a period of two years from completion of development over all specialty income for the properties in the Development Portfolio. Refer to the Woolworths Limited Explanatory Memorandum dated 5 October 2012 for further detail.

The sale of New Zealand properties impacts the New Zealand Supermarkets result whereas the sale of Australian properties is reflected in Central Overheads.

Discontinued Operations Sale of Consumer Electronics businesses

The sale of the Dick Smith Electronics business to Anchorage Capital Partners (Anchorage) was completed on 26 November 2012 and the sale of the Consumer Electronics business in India to Infiniti Retail Limited was completed on 15 October 2012.

In relation to the sale of these businesses in HY13, a net loss of $63.7 million before tax ($65.7 million after tax) was recorded. Given the structure of the sale transactions, there was no material tax expense or benefit recorded from the disposal of the Consumer Electronics businesses.

During the second half of FY13, Woolworths agreed to release Anchorage from its obligation to provide agreed benefits to Woolworths from any upside resulting from a future sale of Dick Smith by Anchorage. In return, Woolworths received payments totalling $74.0 million ($50.0 million in FY13 and $24.0 million in FY14). The additional $74.0 million received was recorded as income in FY13, within the results from Discontinued Operations. The net gain on the disposal of the Consumer Electronics businesses recorded in FY13 was $9.9 million before tax ($7.9 million after tax). Lease commitments to the value of approximately $300 million (unexpired lease term) were transferred with the sale of the Dick Smith business.

2 Home Timber and Hardware was formerly known as Danks.

3 General Merchandise includes BIG W and EziBuy.

4 The Consumer Electronics businesses in Australia, New Zealand and India were divested during the second quarter

of the 2013 financial year. 5 The credit ratings referred to in this document have been issued by a credit rating agency which holds an

Australian Financial Services Licence with an authorisation to issue credit ratings to wholesale clients only. The credit ratings in this document are published for the benefit of Woolworths’ debt providers. 6 Group earnings before interest, tax, depreciation, amortisation and rent (EBITDAR) divided by rent and interest

costs. Rent and interest costs include capitalised interest but exclude foreign exchange gains / losses and dividend income. 7 Operating cash flow as a percentage of total group net profit after tax before depreciation and amortisation.

8 Growth for New Zealand Supermarkets is quoted in New Zealand Dollars.

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9 The 2013 BIG W annual Toy Sale commenced in store during the 53

rd week of FY13, whereas in the prior year it

commenced during the first week of FY13. As such, total sales growth is impacted by the timing of the Toy Sale relative to the reporting date. Comparable sales growth reflects ‘like-for-like’ timing for the Toy Sale and as such, is not impacted by this event.

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FIVE YEAR ANALYSIS

PROFIT AND LOSS H-2014 H-2013 H-2012 (2) H-2011 (2)H-2010

Weeks 27 27 27 27 27

SALES ($m)Australian Food and Liquor 21,476.6 20,487.6 19,570.6 18,771.9 18,143.4Supermarkets NZ 2,665.2 2,312.7 2,244.0 2,183.4 2,161.7Petrol 3,665.0 3,393.2 3,434.0 2,944.5 2,781.2Total Supermarkets 27,806.8 26,193.5 25,248.6 23,899.8 23,086.3

General Merchandise (1) 2,451.9 2,447.0 2,361.9 2,392.0 2,461.6

Consumer Electronics (2) - - - 1,044.7 983.7Total General Merchandise 2,451.9 2,447.0 2,361.9 3,436.7 3,445.3Hotels 788.3 759.4 635.8 611.9 591.2

Home Improvement (3) 796.4 637.1 - - -

Unallocated (4) - - 412.4 354.3 79.7Total continuing operations 31,843.4 30,037.0 28,658.7 28,302.7 27,202.5

Discontinued operations (2) - 641.6 1,066.4 - -Total Group 31,843.4 30,678.6 29,725.1 28,302.7 27,202.5

EARNINGS BEFORE INTEREST AND TAX ($m)

Continuing operations before significant items (5)

Australian Food and Liquor 1,692.1 1,583.9 1,493.5 1,404.8 1,299.4Supermarkets NZ 136.8 124.7 118.5 108.6 96.9Petrol 74.0 71.0 67.4 63.4 51.2Total Supermarkets 1,902.9 1,779.6 1,679.4 1,576.8 1,447.5

General Merchandise (1) 120.5 129.5 119.6 125.0 150.8

Consumer Electronics (2) - - - 22.3 34.8Total General Merchandise 120.5 129.5 119.6 147.3 185.6Hotels 163.9 140.8 116.2 111.9 114.6

Home Improvement (3) (64.4) (58.5) - - -Total trading operations 2,122.9 1,991.4 1,915.2 1,836.0 1,747.7

Central overheads (4) (74.9) (56.7) (92.0) (49.0) (64.5)

Total continuing operations before significant items (5) 2,048.0 1,934.7 1,823.2 1,787.0 1,683.2

Discontinued operations (2)

Discontinued operations before significant items (2),(5) - 2.5 22.2 - -

Total Group before significant items (5) 2,048.0 1,937.2 1,845.4 1,787.0 1,683.2

Significant items (5) - (96.5) (300.0) - -Total Group 2,048.0 1,840.7 1,545.4 1,787.0 1,683.2

EBIT TO SALES %

Continuing operations before significant items (5)

Australian Food and Liquor 7.88 7.73 7.63 7.48 7.16 Supermarkets NZ 5.13 5.39 5.28 4.97 4.48 Petrol 2.02 2.09 1.96 2.15 1.84

General Merchandise (1) 4.91 5.29 5.06 5.23 6.13

Consumer Electronics (2) - - - 2.13 3.54 Hotels 20.80 18.55 18.27 18.28 19.39

Home Improvement (3) (8.09) (9.18) - - -

Total continuing operations before significant items (5) 6.43 6.44 6.36 6.31 6.19

Discontinued operations (2)

Discontinued operations before significant items (2),(5) - 0.39 2.08 - -

Total Group before significant items (5) 6.43 6.31 6.21 6.31 6.19 Total Group 6.43 6.00 5.20 6.31 6.19

PROFIT & LOSS DETAIL ($m)

Continuing operations before significant items (5)

Sales 31,843.4 30,037.0 28,658.7 28,302.7 27,202.5Cost of goods sold (23,233.0) (21,941.6) (21,111.6) (20,932.6) (20,162.8)Gross profit 8,610.4 8,095.4 7,547.1 7,370.1 7,039.7Gross profit margin % 27.04 26.95 26.33 26.04 25.88Cost of doing business (CODB) (6,562.4) (6,160.7) (5,723.9) (5,583.1) (5,356.5)CODB % 20.61 20.51 19.97 19.73 19.69

Selling, general and admin expenses (excluding, rent, depreciation and amortisation) (5,065.7) (4,805.2) (4,473.0) (4,347.3) (4,187.7)

EBITDAR 3,544.7 3,290.2 3,074.1 3,022.8 2,852.0EBITDAR margin % 11.13 10.95 10.73 10.68 10.48Rent (including fitout rent) (973.9) (867.7) (794.3) (795.5) (762.8)EBITDA 2,570.8 2,422.5 2,279.8 2,227.3 2,089.2EBITDA margin (%) 8.07 8.07 7.96 7.87 7.68Depreciation and amortisation (522.8) (487.8) (456.6) (440.3) (406.0)EBIT 2,048.0 1,934.7 1,823.2 1,787.0 1,683.2EBIT margin (%) 6.43 6.44 6.36 6.31 6.19Net financing costs (119.3) (126.7) (136.6) (113.4) (95.7)Woolworths Notes interest (21.4) (24.7) (13.9) (18.6) (14.3)

Profit before tax and significant items (5) 1,907.3 1,783.3 1,672.7 1,655.0 1,573.2Taxation (572.9) (530.9) (482.1) (479.4) (464.0)

Profit after tax and before significant items (5) 1,334.4 1,252.4 1,190.6 1,175.6 1,109.2

Discontinued operations (2)

Profit after tax and before significant items (2),(5) - 1.8 15.6 - -

Group net profit after tax before significant items (5) 1,334.4 1,254.2 1,206.2 1,175.6 1,109.2

Significant items after tax (5) - (94.2) (231.2) - -Group net profit after tax 1,334.4 1,160.0 975.0 1,175.6 1,109.2Non-controlling interests (12.7) (5.2) (8.1) (13.9) (13.6)Profit attributable to members of Woolworths Limited after tax 1,321.7 1,154.8 966.9 1,161.7 1,095.6

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FIVE YEAR ANALYSIS

BALANCE SHEET ($m) H-2014 H-2013 H-2012 (2) H-2011 (2)H-2010

Weeks 27 27 27 27 27

Inventory 4,779.8 4,498.9 4,111.5 3,989.6 3,718.9Accounts Payable (4,809.7) (5,363.0) (4,739.8) (4,608.3) (4,564.2)Net investment in inventory (29.9) (864.1) (628.3) (618.7) (845.3)Fixed assets and investments 9,991.0 9,020.2 9,423.7 8,296.8 7,304.3Intangibles 6,280.4 5,637.6 5,206.5 4,975.0 5,029.6Receivables 990.4 1,032.0 911.4 797.3 692.2Other creditors (3,191.2) (3,090.3) (2,667.9) (2,567.5) (2,527.5)

Total funds employed (6) 14,040.7 11,735.4 12,245.4 10,882.9 9,653.3Net tax balances 386.6 406.1 344.1 238.6 182.4Net assets employed 14,427.3 12,141.5 12,589.5 11,121.5 9,835.7

Cash and borrowings (7) (3,432.8) (2,355.3) (3,757.8) (2,929.6) (1,873.4)Other financial assets and liabilities (896.4) (1,182.9) (738.3) (698.0) (221.6)Net assets continuing operations 10,098.1 8,603.3 8,093.4 7,493.9 7,740.7

Net assets discontinued operations (2) - - 133.8 - -

Total net assets 10,098.1 8,603.3 8,227.2 7,493.9 7,740.7

Non-controlling interests 270.3 269.8 262.3 256.8 252.8Shareholders' equity 9,827.8 8,333.5 7,964.9 7,237.1 7,487.9Total equity 10,098.1 8,603.3 8,227.2 7,493.9 7,740.7

CASH FLOW ($m)Continuing and discontinued operations (2)

EBITDA 2,570.8 2,328.5 2,014.2 2,227.3 2,089.2Movement in net investment in inventory 157.8 496.9 4.8 137.1 252.0Other operating cash flows and other non cash 51.9 74.6 296.5 76.0 90.6Net interest paid (172.0) (190.4) (187.7) (151.5) (125.9)Tax paid (564.8) (507.8) (455.7) (423.1) (462.6)Operating cash flow 2,043.7 2,201.8 1,672.1 1,865.8 1,843.3

Payments for property, plant, equipment and intangibles (826.7) (971.2) (1,259.9) (1,018.6) (873.1)Proceeds on disposal of property, plant and equipment and subsidiaries 85.3 826.3 72.9 68.4 30.8Other investing cash flows (334.8) (198.7) (126.2) (129.7) (142.3)Cash flow from operations after investing activities 967.5 1,858.2 358.9 785.9 858.7

Movement in gross debt 198.7 1.5 (489.9) 880.4 (55.6)Issue of subsidiary shares to non-controlling interests 60.0 116.0 121.0 74.6 42.7Dividends paid (776.9) (722.8) (688.7) (662.4) (598.2)Dividends paid to non-controlling interests (15.6) (7.0) (5.4) (4.7) (6.8)Buyback of shares - - - (737.9) -New shares issued 33.7 182.1 122.6 97.1 75.2

Effects of exchange rate changes on balance of cash held in foreign currencies 5.8 1.7 (0.4) (6.9) (1.2)

Net cash flow 473.2 1,429.7 (581.9) 426.1 314.8

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FIVE YEAR ANALYSIS

SHAREHOLDER VALUE H-2014 H-2013 H-2012 (2) H-2011 (2)H-2010

Weeks 27 27 27 27 27

ROFE (Pre-tax return on funds employed) (%) (8)

Group normal 14.94 15.03 12.79 16.66 17.74

Continuing operations before significant items (5) 14.94 15.81 15.44 16.66 17.74

DU PONT ANALYSIS (before significant items ) (%) (5)

EBIT to sales 6.43 6.31 6.21 6.31 6.19

Service burden (9) 93.13 92.16 91.80 92.61 93.46

Tax burden (10) 69.30 69.96 70.72 71.03 70.51

Asset turn (11) 1.31 1.32 1.37 1.43 1.48

Financial leverage (12) 2.47 2.79 2.73 2.74 2.46

Return on equity (13) 13.45 14.99 15.04 16.05 14.63

EARNINGS PER SHAREOrdinary share price closing ($) 34.00 29.46 25.10 26.97 28.00Market capitalisation ($m) 42,656.9 36,607.5 30,795.1 32,711.6 34,720.0Weighted average shares on issue 1,246.1 1,233.3 1,217.8 1,220.3 1,230.3

Normal basic EPS (cents per share) (14) 106.1 93.6 79.4 95.2 89.1

Normal basic EPS before significant items (cents per share) (5),(14) 106.1 101.3 98.4 95.2 89.1

Normal basic EPS continuing operations before significant items

(cents per share) (5),(14)106.1 101.1 97.1 95.2 89.1

Interim dividend ($m) (15) 815.5 770.6 723.9 691.4 657.2Interim dividend (cents per share) 65.0 62.0 59.0 57.0 53.0Payout ratio (%) 61.70 66.73 74.87 59.52 59.99

Payout ratio before significant items (%) (5) 61.70 61.70 60.42 59.52 59.99Price/earnings ratio (times) 32.05 31.47 31.61 28.33 31.44

Price/earnings ratio before significant items (times) (5) 32.05 29.09 25.51 28.33 31.44Price/operating cash flow ratio 20.73 16.46 18.32 17.63 18.67

GROWTH RATES (continuing operations before significant items )

(% increase) (5)

Sales 6.01 4.81 5.14 4.04 4.17Sales per equivalent week 6.01 4.81 5.14 4.04 4.17EBITDA 6.12 6.26 4.11 6.61 10.67EBIT 5.86 6.12 3.32 6.17 11.09Profit before tax 6.95 6.61 2.41 5.20 11.28Normal basic EPS 4.95 4.12 3.36 6.91 10.03

FINANCIAL STRENGTH (before significant items ) (5)

Service cover ratio (times) (16) 14.56 12.75 12.19 13.54 15.30

Fixed charges cover (times) (17) 3.1 3.0 3.0 3.2 3.2

Sales to inventory (times) (18) 7.09 7.35 7.21 7.62 7.76Capital expenditure to EBITDA (%) 32.16 40.05 54.43 45.73 41.79Operating cash flow per share ($) 1.64 1.79 1.37 1.53 1.50

Serviced gearing (%) (19) 25.92 25.05 33.34 31.69 20.97Current assets to current liabilities (%) 90.87 98.98 85.07 78.91 80.06

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Page 73: RE: Woolworths Limited – Appendix 4D For personal use only · RE: Woolworths Limited – Appendix 4D Woolworths Limited Half Year Results – Appendix 4D - for the 27 weeks to 5

FIVE YEAR ANALYSIS

NOTES TO STATISTICS

1. General Merchandise includes BIG W and EziBuy.

2. On 27 September 2012, Woolworths announced its exit from the Consumer Electronics market segment with the sale of its wholesale operations in India and the Dick Smith Electronics business in Australia and New Zealand. For statutory reporting, Dick Smith Electronics operations were reported as a discontinued operation from half year 2012. India Wholesale operations were reported as a discontinued operation from half year 2013. For comparative purposes within this summary, with the exception of the balance sheet, half year 2012 was adjusted to include India Wholesale as a discontinued operation. Half year 2011 balances are consistent with the way they were reported at half year 2011 (that is, do not reflect any restatement of the profit and loss for discontinued operations).

3. Prior to half year 2013, Home Improvement is included in the 'Unallocated' category.

4. Central overheads / unallocated consists of the Group's operating segments that are not separately reportable (Home Improvement prior to half year 2013) as well as various support functions including Property and Head office costs.

5. Significant items represent: - in HY13, the $63.7m before tax ($65.7m after tax) write-off following the sale of the Consumer Electronics businesses - in HY13, the one-off loss of $32.8m before tax ($28.5m after tax) on the Shopping Centres Australasia Property Group transaction- in HY12, the $300.0m before tax ($231.2m after tax) provision set aside for the restructure and divestment of Dick Smith Electronics in Australia and New Zealand. Where noted, profit and loss items have been adjusted to reflect these significant items.

6. Funds employed is net assets excluding net tax balances, net debt, other financial liabilities and assets and liabilities as a result of hedging per AASB 139 Financial Instruments: Recognition and Measurement.

7. Cash and borrowings is gross debt less cash on hand, cash at bank and cash on short term deposit.

8. Return on funds employed (ROFE) is EBIT as a percentage of average (of opening and closing) funds employed for the half year. For comparability, the continuing operations ratio excludes Consumer Electronics Australia, New Zealand and India from half year 2012.

9. Service burden is net operating profit before income tax expressed as a percentage of EBIT.

10. Tax burden is profit after income tax attributable to shareholders expressed as a percentage of profit before income tax.

11. Asset turn is total sales divided by total assets for the half year.

12. Financial leverage is total assets divided by shareholders' equity for the half year.

13. Return on equity is profit after income tax attributable to shareholders, divided by shareholders' equity at the end of the half year.

14. Normal basic earnings per share (normal EPS) is profit after tax and servicing Hybrid Notes attributable to shareholders divided by the weighted average number of ordinary shares on issue during the period. The weighted average number of shares on issue has been calculated in accordance with Accounting Standard AASB 133 Earnings per Share.

15. The current year figure represents the forecast dividend given the shares on issue at the date the half year results are released to the market. This figure will change if there are any shares issued between the reporting date and the ex-dividend date.

16. Service cover ratio is EBIT divided by the sum of net financing costs and Hybrid Notes interest.

17. Fixed charges cover is EBITDAR divided by rent and interest costs. Rent and interest costs include capitalised interest but exclude foreign exchange gains/losses and dividend income.

18. Sales to inventory is total sales divided by average (of opening and closing) inventory.

19. Serviced gearing is cash and borrowings together with the hedge assets and liabilities related to those borrowings divided by cash and borrowings together with the hedge assets and liabilities related to those borrowings plus total equity.

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