Summary of the unaudited interim group results for the 26 weeks ended 25 December 2022 and cash dividend declaration

Woolworths Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number 1929/001986/06
LEI: 37890095421E07184E97
Share code: WHL
Share ISIN: ZAE000063863
Bond Company code: WHLI
('the Group', 'the Company' or 'WHL')

SUMMARY OF THE UNAUDITED INTERIM GROUP RESULTS 
FOR THE 26 WEEKS ENDED 25 DECEMBER 2022 AND CASH DIVIDEND DECLARATION

FINANCIAL OVERVIEW
Turnover                                          +15.0% to R45.1bn
Turnover and concession sales                     +18.5% to R49.9bn
Profit before tax                                 +63.3% to R3.7bn
Adjusted profit before tax                        +70.1% to R3.8bn
Earnings per share                                +74.9% to 293.7cps
Headline earnings per share                       +75.1% to 294.5cps
Adjusted diluted headline earnings per share      +75.5% to 284.7cps
Net borrowings (excluding lease liabilities) of   R671m (2021: R258m net cash)
Interim dividend per share                        +96.9% to 158.5cps (2021: 80.5cps)
Return on capital employed                        19.5% (2021: 13.2%)
Free cash flow per share                          +29.3% to 269.0cps (2021: 208.0cps)

COMMENTARY ON PERFORMANCE
The Group's turnover and concession sales for the 26 weeks ended 25 December 2022 ('current period' or
'period') increased by 18.5% compared to the 26 weeks ended 26 December 2021 ('prior period' or 'last year')
and by 16.3% in constant currency terms. Trade during this period is not directly comparable to that of last year
due to the impact of government-imposed lockdowns in Australia in the prior period base. Group turnover and
concession sales increased by 8.8% during the last six weeks of the half, which is directly comparable to that of
the prior period, underpinned by strong Black Friday and festive season trade.

The return of customers to physical stores, particularly in Australia, resulted in a substantial increase in brick-
and-mortar sales, with the contribution of online sales moderating to 10.9% of total turnover and concession
sales, compared to 13.7% for the prior period.

Earnings per share ('EPS') grew by 74.9% to 293.7cps, compared to 167.9cps for the prior period, while headline
EPS ('HEPS') and adjusted diluted HEPS increased by 75.1% and 75.5% over the prior period to 294.5cps and
284.7cps, respectively.

The Group ended the half with a very healthy balance sheet and a net cash position in Australia of A$351.4
million. Continued focus on working capital management and capex prioritisation resulted in cash conversion
exceeding 90%, generating Free Cash Flow of 269.0cps. In line with the Group's refreshed capital allocation
framework, we have also repurchased shares to a value of a further R1.5 billion during the current period,
bringing the total buyback over the past year to 4.3% of issued shares. The share repurchases positively impact
EPS, HEPS, adHEPS and other capital return metrics in the current and future periods.

DISPOSAL OF DAVID JONES
As announced on the JSE Stock Exchange News Service ("SENS") on 19 December 2022, the Group has entered
into an agreement to sell its entire shareholding in its Australian subsidiary, David Jones. As part of the
transaction, WHL will retain the flagship property asset in Bourke Street, Melbourne, which will be leased back
to David Jones on market-related terms. The agreement is subject to terms and conditions customary for
transactions of this nature, and WHL anticipates the transaction to complete by the end of March 2023, with the
final proceeds to be determined based on completion accounts. Management expects to realise value in excess
of the carrying value of the David Jones assets. Over the past year, we have also returned R1.6 billion of capital
from David Jones to WHL.

The transaction will materially improve the return on capital of the Group by further transforming its balance
sheet through the removal of c.R22 billion in liabilities (including c.R17 billion in liabilities relating to the David
Jones store portfolio). Importantly, this also enables the reallocation of capital and management focus towards
the Group's core, and higher yielding South African businesses and the Australian Country Road Group.

SOUTHERN AFRICA

IMPACT OF LOADSHEDDING
South Africa is facing a devastating energy crisis, which continues to have a pronounced impact on our economy,
as well as business and consumer confidence. We estimate the financial impact of loadshedding to have reduced
our Southern Africa adjusted operating profit by c.R15 million per month (c.R90 million in total over the half),
with the majority of this incurred in our predominantly fresh Food business, as a result of increased waste and
diesel costs in both our supply chain and stores. Given the erratic and unpredictable nature of loadshedding, we
are focused on developing a longer-term business solution to sustainably mitigate both upstream and
downstream impacts to this challenge. This includes the impacts on our suppliers, and particularly those where
the costs required to manage the breakdown in infrastructure have become prohibitive.

Whilst we are focused on minimising both the operational and financial impacts of loadshedding, our primary
objective is to protect the quality and integrity of our superior cold chain, and the trust our customers place in
our brand. We have made significant past investments in our energy supply capabilities, with 99% of our stores
and all our distribution centres already equipped with generator capacity. Furthermore, the majority of our
suppliers are exclusive to our Food business, with these partnerships, in many instances, spanning decades. This
places us in a favourable position to build a holistic, integrated and fully resilient response plan from here.

WOOLWORTHS FASHION, BEAUTY AND HOME ('FBH')
The Fashion Beauty Home turnaround strategy continues to gain traction. Turnover and concession sales grew
by 11.2%, and by 11.0% on a comparable store basis, and strengthened to 12.0% in the last six weeks of the
period. Price movement of 10.8% remained positively impacted by the ongoing focus on full-price sales and the
continued reduction in markdowns. Trading space was further reduced by 2.2% over the prior period. Online
sales grew by 4.5% and contributed 4.2% of South African sales.

A deliberate focus on full-price sales, and a smaller but more profitable winter clearance, resulted in gross profit
margin increasing by 170bps to 48.0%, notwithstanding inflationary supply chain pressures. Expense growth was
10.0%, with store cost growth contained to 6.5%, as we continued to reduce unproductive space. Adjusted
operating profit increased by 25.5% to R979 million, resulting in an operating margin of 13.1% for the current
period, compared to 11.6% in the prior period. Excluding the impact of loadshedding, adjusted operating profit
growth on the prior period was 290bps higher, at 28.4%, with operating margin 30bps higher, at 13.4%.

WOOLWORTHS FOOD
The Food business grew turnover and concession sales by 7.6% and by 5.4% on a comparable store basis, with
sales growth accelerating to 8.6% in the last six weeks of the period. This is notwithstanding the considerable
disruption caused by loadshedding, which continues to have a pronounced impact in terms of foregone sales and
increased costs. Price movement increased to 6.8% for the period, being below underlying product inflation of
8.4%, due to continued price investment, as we further enhance our overall customer value proposition. Space
grew by 2.5% relative to the prior period. Online sales increased by 22.7%, now accounting for 3.6% of South
African sales, as we continue to expand our on-demand offering, Woolies Dash.

Gross profit margin decreased by 30bps to 23.8%, due to the impact of loadshedding on waste and supply chain
costs, the continued shift to online, and the ongoing investment in price. Additional diesel costs, coupled with
higher cost inflation, resulted in expense growth of 8.5% on last year. Adjusted operating profit grew by 0.2% to
R1 412 million, returning an operating profit margin of 6.7% for the current period, compared to 7.2% in the prior
period. Excluding the impact of loadshedding, adjusted operating profit growth on the prior period was 490bps
higher, at 5.1%, with operating margin 30bps higher, at 7.0%.

WOOLWORTHS FINANCIAL SERVICES ('WFS')
The WFS book reflects a year-on-year increase of 17.2% to the end of December 2022, driven by consumer
spending, as well as new accounts and credit card advances. The annualised impairment rate for the six months
ended 31 December 2022 was 5.5%, compared to 4.0% in the prior period, due to the growth in new business.

AUSTRALIA AND NEW ZEALAND ('ANZ')
Our businesses in ANZ continued their positive momentum, notwithstanding the increased inflationary pressures
faced by consumers during the period.

COUNTRY ROAD GROUP ('CRG')
Country Road Group sales grew by 25.5% and by 26.6% in comparable stores, underpinned by strong
performances from the Country Road, Politix and Witchery brands in particular. The last six weeks of trade, which
are comparable to that of the prior period, saw Country Road Group delivering strong sales growth of 8.5%.
Space reduced by 5.5% during the period. Online sales contributed 26.1% to total sales, compared to 33.8% for
the prior period.

Strong full price sales and reduced promotional activity drove an increase in gross profit margin of 400bps to
63.5%, notwithstanding higher supply chain costs. Expenses increased by 22.0% on the lockdown-impacted prior
period base. Adjusted operating profit increased by 94.2% to A$93.2 million, returning an operating profit margin
of 15.0%, compared to 9.7% in the prior period.

DAVID JONES ('DJ')
The successful turnaround of David Jones has delivered a notable improvement in the business' underlying
operational and financial health. For the period, turnover and concession sales increased by 31.8% and by 27.6%
on a comparable store basis, with our flagship and CBD stores performing ahead of expectations. Sales in the last
six weeks grew by 2.3%. Trading space reduced by 3.6% relative to the prior period. Online sales contributed
17.2% of total sales, compared to 28.1% for the prior period.

Gross profit margin improved by 140bps to 36.4%. Expenses increased by 15.5%, on the lockdown-impacted prior
period base, offset by savings arising from the successful execution of cost-saving initiatives. Adjusted operating
profit grew by 245.8% to A$106.5 million, returning an operating profit margin of 8.3%, compared to 3.2% in the
prior period.

David Jones is reported as a discontinued operation in the Group's interim results following the agreement to
sell its entire shareholding in the subsidiary, as announced on SENS on 19 December 2022.

OUTLOOK
The trading environment over the second half of the financial year is expected to prove more challenging as we
continue to face numerous headwinds through higher inflation and interest rates, which are placing pressure on
both consumer demand and costs. In South Africa, an imminent resolution to the debilitating power crisis and
stimulus for economic growth appears remote. These factors, coupled with a higher comparative base effect, are
likely to result in slower profit growth (from continued operations) in the current half, relative to the first half.

Looking beyond the 2023 financial year, we remain confident in our self-driven opportunities, and the traction
we are seeing in the execution of our strategies. With a much strengthened and simplified WHL Group post the
David Jones disposal, we are well positioned to invest even greater management time and financial resources in
our remaining businesses, to the benefit of all stakeholders.

Any reference to future financial performance included in this announcement has not been reviewed or reported
on by the Group's external auditors and does not constitute an earnings forecast.

H Brody                    R Bagattini
Chairman                   Group Chief Executive Officer
Cape Town
28 February 2023

DIVIDEND DECLARATION
The Board of Directors of WHL ('Board') has taken a decision to declare an interim gross cash dividend per
ordinary share ('dividend'), based on a payout ratio of 70% of headline earnings of the combined Woolworths
South Africa business segments (FBH, Food and WFS) as well as Country Road Group.

Notice is hereby given that the Board has declared an interim dividend of 158.5 cents (126.8 cents net of dividend
withholding tax) for the 26 weeks ended 25 December 2022, being a 96.9% increase on the prior period's 80.5
cents. The dividend has been declared from reserves and therefore does not constitute a distribution of
'contributed tax capital' as defined in the Income Tax Act, 58 of 1962. A dividend withholding tax of 20% will be
applicable to all shareholders who are not exempt.

The issued share capital at the declaration date is 1 010 195 949 ordinary shares. The salient dates for the
dividend will be as follows:

Last day of trade to receive a dividend       Tuesday, 14 March 2023
Shares commence trading 'ex' dividend         Wednesday, 15 March 2023
Record date                                   Friday, 17 March 2023
Payment date                                  Monday, 20 March 2023

Share certificates may not be dematerialised or rematerialised between Wednesday, 15 March 2023 and Friday,
17 March 2023, both days inclusive. Ordinary shareholders who hold dematerialised shares will have their
accounts at their CSDP or broker credited or updated on Monday, 20 March 2023. Where applicable, dividends
in respect of certificated shares will be transferred electronically to shareholders' bank accounts on the payment
date. Where the transfer secretaries do not have the banking details of any certificated shareholders, the cash
dividend will be held in trust by the transfer secretaries pending receipt of the relevant certificated shareholder's
banking details after which the cash dividend will be paid via electronic transfer into the personal bank account
of the certificated shareholder.

CA Reddiar
Group Company Secretary
Cape Town
28 February 2023

CHANGES TO THE BOARD OF DIRECTORS AND BOARD COMMITTEES
The following changes, which were announced on SENS, took place during the period under review:
*   Mr Rob Collins was appointed as an Independent Non-executive Director of WHL due to his extensive retail
    experience. His appointment to the WHL Board and as a member of the Risk and Information Technology
    Committee, which took effect from 1 October 2022, was announced on SENS on 29 August 2022.
*   Ms Phumzile Langeni resigned as an Independent Non-executive Director of WHL, and as a member of the
    Audit and Risk and Information Technology Committees due to an unexpected increase in her personal
    business commitments, which required more of her time. Her resignation, which took effect from 31
    December 2022, was announced on SENS on 22 December 2022.

ABOUT THIS ANNOUNCEMENT
Statement and availability
This short form announcement, including the constant currency and pro forma financial information, is the
responsibility of the directors and is only a summary of the information in the full announcement. The Unaudited
Interim Group Results were approved by the Board on 28 February 2023, and the information in this
announcement has been correctly extracted from the Unaudited Interim Group Results. Any investment
decisions by investors and/or shareholders and/or bondholders should be based on consideration of the full
announcement, which has been published on SENS and available at https://senspdf.jse.co.za/documents/2023/JSE/ISSE/WHLE/WHLFY23.pdf 
and on the Company's website https://www.woolworthsholdings.co.za/wp-content/uploads/2023/03/WHLFY23.pdf
An electronic copy of the full announcement may be requested and obtained, at no charge, from the Group
Company Secretary at Governance@woolworths.co.za or the Head of Investor Relations at InvestorRelations@woolworths.co.za. 
The Analyst Presentation will be available on the website later today at
the link https://www.woolworthsholdings.co.za/wp-content/uploads/2023/03/Analyst_Presentation.pdf

DIRECTORATE AND STATUTORY INFORMATION
Non-executive Directors
Hubert Brody (Chairman)
Nombulelo Moholi (Lead Independent Director)
Christopher Colfer (Canadian)
Robert Collins (British)
Belinda Earl (British)
David Kneale (British)
Thembisa Skweyiya
Clive Thomson

Executive Directors
Roy Bagattini (Group Chief Executive Officer)
Reeza Isaacs (Group Finance Director)
Sam Ngumeni (Group Chief Operating Officer)

Group Company Secretary
Chantel Reddiar

Debt officer
Ian Thompson

Registration number
1929/001986/06

LEI
37890095421E07184E97

Share code
WHL

Share ISIN
ZAE000063863

Bond Company code
WHLI

Registered address
Woolworths House
93 Longmarket Street
Cape Town, 8001, South Africa
PO Box 680, Cape Town 8000, South Africa

Tax number
9300/149/71/4

JSE sponsor and debt sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)

Transfer secretaries
Computershare Investor Services Proprietary Limited
15 Biermann Avenue, Rosebank, 2196, South Africa

1 March 2023



Date: 01-03-2023 07:05:00
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