PREMIUM COMPANY PROFILE

Woolworths Group Limited

27 June 2021

IBISWORLD.COM 03 9655 3881 INFO@IBISWORLD.COM

Woolworths Group Limited June 2021

Company Details
Overview

$55.8bn $39.2bn $2.1bn 210k

REVENUE ASSETS NPAT EMPLOYEES

Annual Growth Annual Growth Annual Growth Annual Growth

2017–21 2017–21 2017–21 2017–21
0.7% 10.8% n/a 0.5%

Annual Growth 2017–21 Annual Growth 2017–21 Annual Growth 2017–21 Annual Growth 2017–21

Description Woolworths is a Public Company that is ranked number 3 in the Australia & New Zealand enterprise
database. The company generates the majority of its income from the Supermarkets and Grocery Stores
in Australia industry.

In 2021 the company generated total revenue of $55,818,000,000 including sales and other revenue. In
2021 Woolworths had 210,067 employees in Australia including employees from all subsidiaries under the
company's control.

The Chief Executive of Woolworths is Mr Brad Banducci whose official title is Managing Director & Chief
Executive Officer. The Chairman of Woolworths is Mr Gordon Cairns whose official title is Non-Executive
Chairman.

Company Snapshot REGISTERED Woolworths Group Limited

NAME
TRADING NAME Woolworths
RANK 3
ACN # 000 014 675
ABN # 88 000 014 675
TOP INDUSTRY G4111 - Supermarkets and Grocery Stores in Australia
TYPE Public Company
CEO Mr Brad Banducci
TITLE Managing Director & Chief Executive Officer
INCORPORATION 22-Sep-1924
DATE
ADDRESS 1 Woolworths Way
BELLA VISTA New South Wales
Australia 2153
WEBSITE woolworthsgroup.com.au
PHONE NUMBER +61 2 8885 0000

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Woolworths Group Limited June 2021

Industries of Operation

Major Player In: Other Industries:

Supermarkets and Grocery Stores in Australia(G4111) Consumer Goods Retailing in Australia(G4200)

Department Stores in Australia(G4260) Hardware and Building Supplies Retailing in Australia(G4231)
Garden Supplies Retailing in Australia(G4232)
Clothing Retailing in Australia(G4251)
Footwear Retailing in Australia(G4252)
Watch and Jewellery Retailing in Australia(G4253)
Personal Accessory Retailing in Australia(G4259)
Liquor Retailing in Australia(G4123)

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Woolworths Group Limited June 2021

SWOT Strengths and weaknesses take into account internal factors, and are based on Woolworths’s performance
in comparison to its competitors. Opportunities and Threats focus on external influences, and are based on
trends and demand in the Supermarkets and Grocery Stores in Australia and the Retail Trade sector.

Strengths
Return on Equity Days Stock Held
119.3% 29.0
Woolworths Group Limited's return on equity is Woolworths Group Limited's days stock held is
higher than the peer average. less than the peer average, which suggests
they are able to quickly generate revenue from
inventory.

Weaknesses
Net Profit Margin Pre-Tax Margin
3.7% 4.0%
Woolworths Group Limited's net profit margin is Woolworths Group Limited's pre-tax margin is
lower than the peer average. lower than the peer average.

Opportunities
High & Steady Barriers to Entry Growth Life Cycle Stage
Low Volatility Low Imports
Low Customer Class Concentration Low Product/Service Concentration
Threats
Low & Steady Level of Assistance High Competition
Low Profit vs. Sector Average Low Revenue per Employee
High Capital Requirements

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Woolworths Group Limited June 2021

Operating Divisions

Segment Name Revenue Profit Assets

AUD000 AUD000 AUD000
Australian Food 44,441,000 2,338,000 n/a

New Zealand Food 6,652,000 336,000 n/a

BIG W 4,583,000 172,000 n/a

Unallocated 142,000 -772,000 39,236,000

Total 55,818,000 2,074,000 39,236,000

Operating Divisions
Woolworths Group Limited operates as a supermarket food and everyday needs retailer. The group's main business operations are
categorised into the following divisions:

 Australian Food - The company operates approximately 1,064 Woolworths and Metro branded Supermarkets.

 New Zealand Food - Woolworths operates approximately 181 Countdown grocery stores across New Zealand, and is
engaged in wholesale operations to an additional 70 stores.

 BIG W: The company operates approximately 179 Big W discount department stores in Australia retailing hardware,
stationery, books, homewares, toys, sporting goods, clothing, recorded media, software, automotive goods, pet food and
health & beauty products.

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Woolworths Group Limited June 2021

Key Personnel
Company Personnel * Appointed to the Board of Directors

Chief Executive
Chairman Financial Controller
Brad Banducci
Gordon Cairns Stephen Harrison
Managing Director & Chief
Non-Executive Chairman * Chief Financial Officer
Executive Officer *

Position Type Full Name Title Salutation Initials

Chairman Gordon Cairns Non-Executive Chairman * Mr GM

Chief Executive Brad Banducci Managing Director & Chief Executive Officer * Mr BL

Financial Controller Stephen Harrison Chief Financial Officer Mr S

Chief Operating Officer Amanda Bardwell Managing Director WooliesX Ms A

Chief Operating Officer Claire Peters Managing Director B2B & Everyday Needs Mrs C

Chief Operating Officer Natalie Davis Managing Director Woolworths Supermarkets Ms N

Chief Operating Officer Guy Brent Managing Director FoodCo & Metro Mr G

Non-Executive Director Maxine Brenner Non-Executive Director * Ms MN

Non-Executive Director Scott Perkins Non-Executive Director * Mr SR

Non-Executive Director Phillip Chronican Non-Executive Director * Mr PW

Non-Executive Director Siobhan McKenna Non-Executive Director * Ms SL

Non-Executive Director Holly Kramer Non-Executive Director * Ms HS

Non-Executive Director Kathee Tesija Non-Executive Director * Ms KA

Non-Executive Director Jennifer Carr-Smith Non-Executive Director * Ms J

Company Secretary Kate Eastoe Joint Company Secretary Ms K

Company Secretary Michelle Hall Joint Company Secretary Ms M

Legal Officer Bill Reid Chief Legal Officer Mr B

Sales Manager Colin Storrie Managing Director New Business & Partnerships Mr C

Sales Manager Fernando Koch General Manager Customer Strategy & Experience Mr F

Marketing Manager Andrew Hicks Chief Marketing Officer Mr A

Marketing Manager Von Ingram Chief Customer Transformation Officer Ms V

Procurement Manager Paul Graham Chief Supply Chain Officer Mr P

Personnel Manager Caryn Katsikogianis Chief People Officer Ms C

Computing/IT Manager John Hunt Chief Information Officer Mr J

Other David Walker Chief Risk Officer Mr D

Other Christian Bennett Group Head Reputation, Gov Relations & Industry Affairs Mr C

Other Alex Holt Chief Sustainability Officer Ms A

Other Rob McCartney Format & Network Development Director Mr R

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Woolworths Group Limited June 2021

Other Directorships * Appointed to the Board of Directors

Chairman Chief Executive

Stephen Harrison Paul Graham
Incentiapay Limited Australian Postal Corporation

Position Type Full Name Company Salutation Initials

Chief Executive Paul Graham Australian Postal Corporation Mr P

Chairman Stephen Harrison Incentiapay Limited Mr S

Non-Executive Director Maxine Brenner Orica Limited Ms MN

Non-Executive Director Maxine Brenner Qantas Airways Limited Ms MN

Chairman Scott Perkins Origin Energy Limited Mr SR

Non-Executive Director Scott Perkins Brambles Limited Mr SR

Director Brad Banducci PFD Food Services Pty Ltd Mr BL

Non-Executive Director Siobhan McKenna Amcil Limited Ms SL

Non-Executive Director Siobhan McKenna Nova Entertainment (Australia) Pty Ltd Ms SL

Director Siobhan McKenna Nova Entertainment Radio Investments Pty Limited Ms SL

Non-Executive Director Holly Kramer Endeavour Group Limited Ms HS

Gender Diversity

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Woolworths Group Limited June 2021

Financials
At a glance

$55.8bn $39.2bn $2.1bn 210k

REVENUE ASSETS NPAT EMPLOYEES

Annual Growth Annual Growth Annual Growth Annual Growth

2017–21 2017–21 2017–21 2017–21
0.7% 10.8% n/a 0.5%

Annual Growth 2017–21 Annual Growth 2017–21 Annual Growth 2017–21 Annual Growth 2017–21

Profit & Loss Statement

Balance Date 27-Jun-2021 28-Jun-2020 30-Jun-2019 24-Jun-2018 25-Jun-2017

Reported Currency AUD AUD AUD AUD AUD

Currency Units AUD000 AUD000 AUD000 AUD000 AUD000

Revenue Items

Sales Revenue 55,694,000 53,080,000 59,984,000 56,944,000 55,034,000

Other Revenue 124,000 161,000 297,000 236,000 252,000

Total Revenue 55,818,000 53,241,000 60,281,000 57,180,000 55,286,000

Cost of Goods Sold 39,366,000 37,750,000 42,542,000 40,235,000 39,105,000

Depreciation 2,079,000 1,968,000 1,222,000 1,103,000 1,038,000

Interest

Interest Received - - - - -

Interest Expenses 630,000 694,000 174,000 202,000 232,000

Profit & Loss

Share of Profits of Associates - - - - -

EBITDA 4,919,000 4,017,000 3,621,000 3,699,000 3,402,000

Income Tax Expense 604,000 417,000 667,000 718,000 651,000

Continuing Operations After Tax 1,606,000 938,000 1,558,000 1,676,000 1,481,000

Outside Equity Interest 65,000 44,000 66,000 71,000 59,000

Profit Before Tax 2,210,000 1,355,000 2,225,000 2,394,000 2,132,000

NPAT 2,074,000 1,165,000 2,692,000 1,724,000 1,534,000

Audit

Audit Fees 4,442 4,677 3,487 3,197 3,559

Audit Other 1,189 3,357 675 572 895

Total Audit Fees 5,631 8,034 4,162 3,769 4,454

Balance Sheet

Current Assets 27-Jun-2021 28-Jun-2020 30-Jun-2019 24-Jun-2018 25-Jun-2017

Cash at Bank 1,009,000 2,068,000 1,066,000 1,273,000 909,000

Trade Debtors 131,000 128,000 121,000 129,000 106,000

Inventory 3,132,000 4,434,000 4,280,000 4,233,000 4,207,000

Other Current Assets 11,514,000 1,495,000 831,000 1,379,000 1,899,000

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Woolworths Group Limited June 2021

Total Current Assets 15,786,000 8,125,000 6,298,000 7,014,000 7,121,000

Non-Current Assets

Receivables 133,000 154,000 145,000 93,000 72,000

Investments 135,000 225,000 633,000 522,000 507,000

Property & Plant Equipment 17,030,000 20,804,000 8,252,000 9,026,000 8,438,000

Intangible Assets 4,671,000 7,717,000 7,793,000 6,465,000 6,533,000

Other Non-Current Assets 1,481,000 1,447,000 795,000 271,000 372,000

Total Non-Current Assets 23,450,000 30,347,000 17,618,000 16,377,000 15,922,000

Total Assets 39,236,000 38,472,000 23,916,000 23,391,000 23,043,000

Current Liabilities

Trade Creditors 4,832,000 5,843,000 5,219,000 5,149,000 5,195,000

Interest Bearing Debt 1,614,000 3,853,000 274,000 604,000 254,000

Other Current Liabilities 16,671,000 3,761,000 3,392,000 3,276,000 3,503,000

Total Current Liabilities 23,117,000 13,457,000 8,885,000 9,029,000 8,952,000

Non-Current Liabilities

Interest Bearing Debt 13,274,000 14,806,000 2,855,000 2,199,000 2,777,000

Other Non-Current Liabilities 1,106,000 1,177,000 1,692,000 1,314,000 1,438,000

Total Non-Current Liabilities 14,380,000 15,983,000 4,547,000 3,513,000 4,215,000

Total Liabilities 37,497,000 29,440,000 13,432,000 12,542,000 13,167,000

Shareholder's Equity

Total Equity 1,739,000 9,032,000 10,484,000 10,849,000 9,876,000

Other

Balance Date 27-Jun-2021 28-Jun-2020 30-Jun-2019 24-Jun-2018 25-Jun-2017

Number of Employees 210,067 215,000 196,000 202,000 202,000

Number of Shares on Issue (end of

1,267,652,417 1,263,091,936 1,258,690,067 1,313,323,941 1,294,416,480
period)

Market Capitalisation (end of period)

46,624,256 45,963,916 41,826,271 39,347,185 32,826,402
('000)

Earnings per Share (basic)(cents) 165.0 92.7 206.2 132.6 119.4

Earnings per Share (diluted)(cents) 164.2 92.2 204.9 132.3 119.1

Qualified Audit Report No No No No No

Modern Slavery Statement Lodged Not Required n/a n/a n/a

Internal Auditor Not available

External Auditor Deloitte

Enterprise Value 60,503,256 62,554,916 43,889,271 40,877,185 34,948,402

Book Value 1,739,000 9,032,000 10,484,000 10,849,000 9,876,000

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Woolworths Group Limited June 2021

Growth & Ratios

Revenue & NPAT

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Woolworths Group Limited June 2021

Financial Growth

Balance Date 27-Jun-2021 28-Jun-2020 30-Jun-2019 24-Jun-2018 25-Jun-2017 Average

Total Revenue Growth (%
4.8 -11.7 5.4 3.4 2.5 0.7
change)

Sales Revenue Growth (%

4.9 -11.5 5.3 3.5 2.6 0.8
change)

EBITDA (% change) 22.5 10.9 -2.1 8.7 34.3 14.2

NPAT (% change) 78.0 -56.7 56.1 12.4 n/a n/a

Shareholders' Funds (%
-80.7 -13.8 -3.4 9.9 12.5 -27.7
change)

Total Assets (% change) 2.0 60.9 2.2 1.5 -2.0 10.8

Employees (% change) -2.3 9.7 -3.0 0.0 -1.5 0.5

Financial Ratios

Balance Date 27-Jun-2021 28-Jun-2020 30-Jun-2019 24-Jun-2018 25-Jun-2017

Return on Revenue (ROR) (%) 3.7 2.2 4.5 3.0 2.8

Return on Shareholders' Funds

119.3 12.9 25.7 15.9 15.5
(ROSF) (%)

Return on Assets (ROA) (%) 5.3 3.0 11.3 7.4 6.7

Pre-Tax Margin (%) 4.0 2.6 3.7 4.2 3.9

Net Profit Margin (%) 3.7 2.2 4.5 3.0 2.8

Revenue per Employee ($'000 per

265.7 247.6 307.6 283.1 273.7
person)

NPAT per Employee ($'000 per

9.9 5.4 13.7 8.5 7.6
person)

Effective Tax Rate (%) 27.3 30.8 30.0 30.0 30.5

Gearing (%) 95.6 76.5 56.2 53.6 57.1

Interest Cover (X) 4.5 3.0 13.8 12.9 10.2

Current Ratio (X) 0.7 0.6 0.7 0.8 0.8

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Woolworths Group Limited June 2021

Operating Segments
Operating Divisions

Segment Name Revenue Profit Assets

AUD000 AUD000 AUD000
Australian Food 44,441,000 2,338,000 n/a

New Zealand Food 6,652,000 336,000 n/a

BIG W 4,583,000 172,000 n/a

Unallocated 142,000 -772,000 39,236,000

Total 55,818,000 2,074,000 39,236,000

Operating Divisions
Woolworths Group Limited operates as a supermarket food and everyday needs retailer. The group's main business operations are
categorised into the following divisions:

 Australian Food - The company operates approximately 1,064 Woolworths and Metro branded Supermarkets.

 New Zealand Food - Woolworths operates approximately 181 Countdown grocery stores across New Zealand, and is
engaged in wholesale operations to an additional 70 stores.

 BIG W: The company operates approximately 179 Big W discount department stores in Australia retailing hardware,
stationery, books, homewares, toys, sporting goods, clothing, recorded media, software, automotive goods, pet food and
health & beauty products.

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Woolworths Group Limited June 2021

Industries by Operating Segment

Australian Food
Report Historical Growth Rates Forecast Growth Rates
2018/19 - 2022/23 2023/24 - 2027/28
G4111 - Supermarkets and Grocery Stores in Australia 2.7% 2.2%
BIG W
Report Historical Growth Rates Forecast Growth Rates
2018/19 - 2022/23 2023/24 - 2027/28
G4260 - Department Stores in Australia -1.4% -0.2%
New Zealand Food
Report Historical Growth Rates Forecast Growth Rates
2018/19 - 2022/23 2023/24 - 2027/28
G4111 - Supermarkets and Grocery Stores in Australia 2.7% 2.2%

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Woolworths Group Limited June 2021

Geographic Locations

Segment Name Revenue Profit Assets

AUD000 AUD000 AUD000
Australia 49,137,000 n/a 17,481,000

New Zealand 6,674,000 n/a 4,591,000

Unallocated 7,000 2,074,000 17,164,000

Total 55,818,000 2,074,000 39,236,000

Geographic Locations - Ratios

Location Profit as Revenue % Profit as Assets %
Australia n/a n/a

New Zealand n/a n/a

Unallocated 29,628.6% 12.1%

Company 3.7% 5.3%

Key Ratios

Segment Name Profit as Revenue % Profit as Assets %

Australian Food 5.3% n/a

New Zealand Food 5.1% n/a

BIG W 3.8% n/a

Unallocated -543.7% -2.0%

Company 3.7% 5.3%

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Woolworths Group Limited June 2021

Competitor Benchmarking
Financial Ratios

Ratios Industry Average * Woolworths 27-Jun-2021 Compared to Industry Unit

Asset Turnover Ratio 1.66 1.42 Lower Times

Cash Ratio 0.06 0.04 Lower Times

Creditors T/O 39.97 44.80 Higher Days

Current Ratio 0.67 0.68 Higher Times

Days Stock Held 28.64 29.04 Higher Days

Debtors T/O 1.50 0.86 Lower Days

Dividend Payout Ratio 1.91 2.29 Higher Percent

Dividend Per Share 0.63 1.01 Higher A$

Earnings Per Share 0.96 1.64 Higher A$

EBITDA 854,512.80 4,919,000.00 Higher A$ 000

Effective Tax Rate 28.54 27.33 Lower Percent

Gearing 90.94 95.57 Higher Percent

Interest Cover 4.50 4.51 Higher Times

Inventory Turnover Ratio 12.74 12.57 Lower Times

Net Assets Per Share 1.63 1.37 Lower A$

Net Profit Margin 3.22 3.72 Higher Percent

NPAT/Employee 8.94 9.87 Higher A$ 000

PPE Turnover Ratio 3.67 3.28 Lower Times

Pre-Tax Margin 3.84 3.97 Higher Percent

Quick Ratio 0.48 0.55 Higher Times

Return on Shareholders Funds 58.87 119.26 Higher Percent

Return on Total Assets 5.33 5.29 Lower Percent

Revenue/Employee 310.52 265.72 Lower A$ 000

*Industry Average refers to the average of all peers identified to primarily operate in the Supermarkets and Grocery Stores in
Australia industry.

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Woolworths Group Limited June 2021

Growth Ratios

Ratios Industry Average * Woolworths 27-Jun-2021 Compared to Industry Unit

Asset Growth 0.37 1.98 Higher Percent

Dividend Growth Rate -4.20 -1.54 Higher Percent

Employees Growth -0.32 -2.29 Lower Percent

NPAT Growth 43.23 78.02 Higher Percent

Revenue Growth 4.85 4.84 Lower Percent

*Industry Average refers to the average of all peers identified to primarily operate in the Supermarkets and Grocery Stores in
Australia industry.

Valuation Ratios

Ratios Industry Average * Woolworths 27-Jun-2021 Compared to Industry Unit

Price-to-Earnings (PE) 22.31 22.29 Lower Times

Price-to-Book (PB) 32.97 26.81 Lower Times

Enterprise Value/EBITDA 23.39 12.30 Lower Times

Enterprise Value/Sales 2.04 1.09 Lower Times

*Industry Average refers to the average of all peers identified to primarily operate in the Supermarkets and Grocery Stores in
Australia industry.

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Woolworths Group Limited June 2021

Industries of Operation
Overview

Major Player In: Other Industries:

Supermarkets and Grocery Stores in Australia(G4111) Consumer Goods Retailing in Australia(G4200)

Department Stores in Australia(G4260) Hardware and Building Supplies Retailing in Australia(G4231)
Garden Supplies Retailing in Australia(G4232)
Clothing Retailing in Australia(G4251)
Footwear Retailing in Australia(G4252)
Watch and Jewellery Retailing in Australia(G4253)
Personal Accessory Retailing in Australia(G4259)
Liquor Retailing in Australia(G4123)

G4111 Supermarkets and Grocery Stores in Australia

Industry Overview

Industry Size Number of Enterprises Industry Concentration Industry Turnover

2021-2022 in Industry Level Growth Rate
2021-2022
$124,946m 2186 HIGH
2.1
Woolworths Group Limited is one of the largest companies in Australia, as measured by annual revenue. The company's headquart
ers are in Bella Vista, Sydney. Woolworths was established in 1924 and listed on the ASX in 1993. The company currently operates
in Australia and New Zealand across several divisions, including Australian Food, New Zealand Food and Big W. In August 2016,
Woolworths exited the Hardware and Building Supplies Retailing industry after selling its Home Timber & Hardware and Thrifty-Link
Hardware brands to Metcash Limited for $165.0 million. It closed its Masters Home Improvement brand in December of the same
year. In the same month, Woolworths also announced its agreement to sell its fuel business to BP. However, the ACCC opposed
the move in December 2017, stating that it would cause fuel prices to increase. In November 2018, Woolworths sold its 540 comp
any-owned fuel convenience sites to EG Group. As part of the sale, Woolworths agreed to retain its branding on these sites for 15
years.

Woolworths Group operates in the industry through its well-known supermarket chain Woolworths, which operates approximately
1,100 stores across Australia. The company also operated the Thomas Dux chain of stores, before rebranding the last three stores
into Woolworths Metro in July 2017. The company's last Safeway supermarket closed in June 2017.

Woolworths' 2016 sale of its underperforming hardware businesses signified a change in the company's strategy. Woolworths has

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Woolworths Group Limited June 2021

made two further strategic moves to focus on its core supermarket operations. In November 2018, Woolworths Group sold its petrol
business to EG Group, while maintaining loyalty programs and a wholesale arrangement with existing locations. In July 2019, the co
mpany announced its intention to separate its Endeavour Drinks and ALH Group subsidiaries, which are Woolworths Group's liquor
retailing and hotel businesses, respectively. These divestments came as the company increased it focused on its Australian Food
division, including significant investments in lower prices and Metro-branded stores. The demerger was anticipated to take place dur
ing 2020, but was postponed until 2021 due to the COVID-19 pandemic. Woolworths has merged the Endeavour Drinks and ALH
Group divisions to create the Endeavour Group. The demerger of this new firm was finalised on 1 July 2021. In contrast to these div
estments, Woolworths Group acquired a 65.0% equity interest PFD Food Services on 28 June 2021. Although the decision was an
nounced in August 2020, the transaction's completion was delayed by an ACCC investigation. PFD Food Services' activities are incl
uded in the General Line Grocery Wholesaling industry.

Woolworths introduced WooliesX, an internal agency dedicated to digital, data and customer insights, in July 2017. The company
has also invested more in consumer data analytics, purchasing a 47.2% share in data analytics company Quantium. In October 20
18, Woolworths awarded Quantium a contract for sales data sharing and research services. On 31 May 2021, the Group acquired
an additional interest in Quantium, increasing its shareholding to 75.0%, and achieving control of the entity.

Financial performance

Woolworths' industry-specific revenue is expected to increase at an annualised 5.0% over the five years through 2021-22, to $46.4
billion. This represents an outperformance of the overall industry over the same period. The company's refocus on its Australian Fo
od division has aided its market share growth. Woolworths has also benefited from store refurbishments and growth among its Me
tro-branded stores. Store refurbishments have aided the company, as it has differentiated itself from low-cost stores such as ALDI.
In addition, Woolworths has had more success in online grocery sales than major competitor Coles. Woolworths invested heavily in
building click-and-collect infrastructure in stores and fulfilment capacity to meet online demand, which has been successful with con
sumers.

Woolworths' industry-specific profitability has risen over the past five years. Profit has increased over the period, as price-based co
mpetition has moderated and reduced purchase costs as a share of revenue. The company has aimed to bolster sales of private-lab
el brands, which attract wider margins than branded goods. Increasing scale in the online grocery sales sector has also aided margi
n growth. However, significant capital expenditure and costs associated with COVID-19 safety compliance have limited profitability
gains.

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Woolworths Group Limited June 2021

Related Companies

Competitors Revenue ($m) Market Share (%)

Woolworths Group Limited 46,400 37.1

Coles Group Limited 34,800 27.9

Aldi Stores (A Limited Partnership) 11,880 9.5

Metcash Limited 8,650 6.9

G4260 Department Stores in Australia

Industry Overview

Industry Size Number of Enterprises Industry Concentration Industry Turnover

2021-2022 in Industry Level Growth Rate
2021-2022
$19,362m 157 HIGH
-4.2
Woolworths Group Limited was founded in 1924 in Sydney and has operations in food, liquor, general merchandise, home improv
ement and hotels. Woolworths participates in the industry through its wholly owned subsidiary Big W. Big W stores offer a range of
goods including home and office stationery, books, housewares, toys, sporting equipment, clothing, entertainment products, motori
ng supplies, pet supplies, and health and beauty products. Big W is also committed to Woolworths Group's 2025 Sustainability Plan,
and has transitioned from print catalogues to exclusively digital, saving over 8,000 tonnes of paper in 2020-22.

Big W's stores tend to be situated in suburban and regional areas. However, Big W also has stores in the city centres of Brisbane,
Canberra and Melbourne. Big W operated 176 stores across Australia as at June 2021, and closed three stores over 2020-21. Th
ese closures are part of the company's strategy to close 30 unprofitable big W stores over the three years through 2021-22. In additi
on, the company closed its distribution centre in Monarto, South Australia in September 2021, and is anticipated to close its centre
in Warwick, Queensland, when its lease ends in October 2023. These closures are due to the company's transition to third party dist
ribution centres to mitigate operating costs.

Financial performance

Big W's revenue is expected to increase at an annualised 4.2% over the five years through 2021-22, to $4.4 billion. This result rep
resents an outperformance of the overall industry over the same period. Big W has faced falling profitability over much of the past
five years, due to weak consumer spending on discretionary products. However, the company has returned to profitability over the
past two years, due to strong online sales growth during COVID-19 lockdowns. Over the past five years, Big W has invested in its
online store to better service rural and time-poor customers. In 2020-21, Big W launched a new online website to enable a safer and
more convenient shopping experience for its customers. However, store closures in the earlier half of 2021-22 are anticipated to red
uce Big W's revenue in the current year.

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Woolworths Group Limited June 2021

Related Companies

Competitors Revenue ($m) Market Share (%)

Woolworths Group Limited 46,400 37.1

Coles Group Limited 34,800 27.9

Aldi Stores (A Limited Partnership) 11,880 9.5

Metcash Limited 8,650 6.9

G4200 Consumer Goods Retailing in Australia

Industry Overview

Industry Size Number of Enterprises Industry Concentration Industry Turnover

2021-2022 in Industry Level Growth Rate
2021-2022
$208,086m 74951 LOW
-1.6

Woolworths is not a major player in this industry

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Woolworths Group Limited June 2021

G4231 Hardware and Building Supplies Retailing in Australia

Industry Overview

Industry Size Number of Enterprises Industry Concentration Industry Turnover

2021-2022 in Industry Level Growth Rate
2021-2022
$26,761m 5205 MEDIUM
-3.1

Woolworths is not a major player in this industry

G4232 Garden Supplies Retailing in Australia

Industry Overview

Industry Size Number of Enterprises Industry Concentration Industry Turnover

2021-2022 in Industry Level Growth Rate
2021-2022
$5,747m 2210 LOW
4.8

Woolworths is not a major player in this industry

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Woolworths Group Limited June 2021

Shareholders
Substantial Shareholders

Shareholder Name % Held Country of Incorporation

BlackRock Group 6.4% USA

Vanguard Group Inc 5.0% USA

Largest Shareholders

TOP 20

Percentage Held by Top 20

Shareholders

61.9% Held

Shareholder Name % Held Country of Incorporation

Percentage Held by Top 20 Shareholders 61.9% Not Available

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Woolworths Group Limited June 2021

Subsidiaries

Holding company

HOLDING COMPANY

Woolworths Group Limited

100.0% Held

Name % Held Country of Incorporation

Woolworths Group Limited 100.0% Australia

Joint ventures

JOINT VENTURES JOINT VENTURES JOINT VENTURES

173 Burke Rd JV Pty Ltd B & J City Kitchen Pty Limited Pet Culture Group Pty Limited

50.1% Held 23.0% Held 60.0% Held

Name % Held Country of Incorporation

173 Burke Rd JV Pty Ltd 50.1% Australia

B & J City Kitchen Pty Limited 23.0% Australia

Pet Culture Group Pty Limited 60.0% Australia

Samsara Recycling Pty Ltd 25.0% Australia

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Woolworths Group Limited June 2021

Subsidiaries

# OF SUBSIDIARIES

99

Name % Held Country of Incorporation

A C N 001 259 301 Pty Limited 100.0% Australia

Advantage Supermarkets Pty Ltd 100.0% Australia

Advantage Supermarkets WA Pty Ltd 100.0% Australia

Andmist Pty Limited 100.0% Australia

Australian Grocery Wholesalers Pty Ltd 100.0% Australia

Australian Independent Retailers Pty Ltd 100.0% Australia

Australian Safeway Stores Pty Ltd 100.0% Australia

Barjok Pty Ltd 100.0% Australia

Calvartan Pty Limited 100.0% Australia

Cenijade Pty Ltd 100.0% Australia

Charmtex Pty Ltd 100.0% Australia

DB Deals Online Pty Limited 100.0% Australia

Dentra Pty Limited 100.0% Australia

Drumstar Pty Ltd 100.0% Australia

Drystone Pty Ltd 100.0% Australia

Endeavour Group Limited 14.6% Australia

Fabcot Pty Ltd 100.0% Australia

Fabsky Pty Ltd 100.0% Australia

FutureFeed Pty Ltd 20.4% Australia

Gembond Pty Limited 100.0% Australia

General Distributors Limited 100.0% New Zealand

GreenGrocer.com.au Pty Ltd 100.0% Australia

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Woolworths Group Limited June 2021

Name % Held Country of Incorporation

Grocery Wholesalers Pty Ltd 100.0% Australia

Health Outcomes Australia Pty Limited 75.0% Australia

HealthyLife Company Pty Limited 100.0% Australia

HP Distribution Pty Limited 100.0% Australia

Hydrogen Nominees Pty Ltd 100.0% Australia

Hydrox Brands Pty Ltd 100.0% Australia

Jack Butler & Staff Pty Ltd 100.0% Australia

Josona Pty Ltd 100.0% Australia

Kiaora Lands Pty Limited 100.0% Australia

Leasehold Investments Pty Ltd 100.0% Australia

Macro Wholefoods Company Pty Ltd 100.0% Australia

Market Blueprint Pty Limited 75.0% Australia

Masters Installation Pty Limited 100.0% Australia

Nalos Pty Ltd 100.0% Australia

Oxygen Nominees Pty Ltd 100.0% Australia

PEH (NZ IP) Pty Ltd 100.0% Australia

Philip Leong Stores Pty Limited 100.0% Australia

Point Gate Developments Pty Limited 100.0% Australia

Point Gate Properties Pty Limited 100.0% Australia

Primary Connect International Pty Limited 100.0% Australia

Progressive Enterprises Holdings Limited 100.0% Australia

QFD Pty Limited 100.0% Australia

Quantium Analytics Private Limited 75.0% India

Quantium Digital Pty Limited 75.0% Australia

Quantium Health HK Limited 75.0% Hong Kong

Quantium Health Holdings Pty Ltd 75.0% Australia

Quantium Health Pty Limited 75.0% Australia

Quantium Health SA (Pty) Limited 75.0% South Africa

Quantium HK Limited 75.0% Hong Kong

Quantium Inc. 75.0% USA

Quantium New Zealand Pty Limited 75.0% New Zealand

Quantium Software Pty Limited 75.0% Australia

Quantium South Africa (Pty) Limited 75.0% South Africa

Quantium Ventures Pty Limited 75.0% Australia

Queensland Property Investments Pty Ltd 100.0% Australia

Sherpa Pty Ltd 20.8% Australia

The Quantium Group Holdings Pty Limited 75.0% Australia

The Quantium Group Pty Limited 75.0% Australia

Universal Wholesalers Pty Limited 100.0% Australia

Vincentia Nominees Pty Ltd 100.0% Australia

W23 Incubator Pty Limited 100.0% Australia

W23 Investments 4 Pty Limited 100.0% Australia

W23 Investments Pty Limited 100.0% Australia

W23 Pty Limited 100.0% Australia

W23 Ventures Pty Limited 100.0% Australia

W360 R&D Pty Limited 100.0% Australia

Weetah Pty Limited 100.0% Australia

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Woolworths Group Limited June 2021

Name % Held Country of Incorporation

WGP No 1 Pty Limited 100.0% Australia

WGP No 2 Pty Limited 100.0% Australia

Woolies Liquor Stores Pty Ltd 100.0% Australia

Woolstar Pty Limited 100.0% Australia

Woolworths (International) Pty Limited 100.0% Australia

Woolworths (Project Finance) Pty Limited 100.0% Australia

Woolworths (Q'land) Pty Limited 100.0% Australia

Woolworths (R & D) Pty Limited 100.0% Australia

Woolworths (South Australia) Pty Limited 100.0% Australia

Woolworths (Victoria) Pty Limited 100.0% Australia

Woolworths (WA) Pty Limited 100.0% Australia

Woolworths Australian Communities Foundation Pty Limited 100.0% Australia

Woolworths Custodian Pty Ltd 100.0% Australia

Woolworths Executive Superannuation Scheme Pty Limited 100.0% Australia

Woolworths Format Development Pty Limited 100.0% Australia

Woolworths Group Payments Pty Limited 100.0% Australia

Woolworths Group Superannuation Scheme Pty Ltd 100.0% Australia

Woolworths International Trading Pty Limited 100.0% Australia

Woolworths Management Pty Ltd 100.0% Australia

Woolworths Marketplace Pty Limited 100.0% Australia

Woolworths New Zealand Group Limited 100.0% New Zealand

Woolworths New Zealand Ltd 100.0% New Zealand

Woolworths Properties Pty Limited 100.0% Australia

Woolworths Property Double Bay Pty Limited 100.0% Australia

Woolworths Townsville Nominee Pty Limited 100.0% Australia

Woolworths Trust Management Pty Limited 100.0% Australia

Woolworths Trustee No 2 Pty Limited 100.0% Australia

Woolworths360 Investments Pty Limited 100.0% Australia

Woolworths360 Pty Limited 100.0% Australia

WPay Pty Limited 100.0% Australia

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Woolworths Group Limited June 2021

History
Overview

Incorporation Date 1924

2021 - January: Woolworths Limited withdraws a non-binding proposal to acquire 100% of Australian Pharmaceutical Industries for
$1.75 cash per share, for a total of approximately $872 million.

June: Woolworths Group completed the demerger of its retail drinks and hospitality business, Endeavour Group. Endeavour Group
Limited was listed on the Australian Securities Exchange on 23 June (ASX: EDV).

Woolworths Group completed its acquisition of a 65% interest in PFD Food Services on 28 June.

2020 - August: Woolworths Group announced plans to acquire a 65% equity interest in PFD Food Services and 100% of PFD's
freehold properties for a consideration of $552 million. The transaction is subject to ACCC approval.

February: Woolworths Group completed the merger of its retail drinks business and ALH Group to create Endeavour Group.
Woolworths Group holds an 85.4% interest in Endeavour Group. Woolworths Group plans to demerge Endeavour Group at a later
date.

2019 - July: Woolworths Group Limited announced plans to merge its Endeavour Drinks division with Australian Leisure and
Hospitality Group into a single entity - Endeavour Group Limited. The implementation of the merger is expected to be complete in
2020.

June: Woolworths Group announced a partnership with Marley Spoon, a subscription-based meal kit provider, over a 5 year deal,
with the group providing a $30 million investment.

April: Woolworths Group Limited announced that it will close 30 Big W-branded stores and two distribution centres linked to the
discount department store over the next three years.

Woolworths Group completed the sale of its Petrol business of 540 fuel convenience sites, to EG Group, for a consideration of $1,682
million.

January: Under the Modern Slavery Act 2018 (NSW), Woolworths Group Limited will be required to submit a report by the 31st of
December 2020, detailing their actions taken to address to the risk of modern slavery in their operations and supply chains.

2018 - November: Woolworths entered into an agreement with UK-based EG Group to sell its 540 company-owned fuel convenience
stores for a consideration of $1.725 billion, pending Foreign Investment Review Board approval.

July: Following the termination of the agreement to sell its petrol business to BP, Woolworths announced a new alliance with Caltex
including a 15 year wholesale fuel supply agreement.

2017 - December: Woolworths Limited changed its name to Woolworths Group Limited.

The ACCC announced that it would oppose Woolworths Group Limited's sale of its fuel business to BP after the deal was originally
announced in December 2016.

October: Woolworths finalised the sale of its 100% interest in Hydrox Holdings Pty Ltd to Home Investment Consortium Company Pty
Ltd, completing its exit from the Home Improvement business.

July: Woolworths established a new business, WooliesX, combining its digital, data, e-commerce and customer divisions.

June: Woolworths completed the sale of Ezibuy Holdings Limited and its subsidiaries.

2016 - August: Woolworths Limited sold Home Timber & Hardware to Metcash Limited for $165 million.

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Woolworths Group Limited June 2021

January: The company announced it intended to purchase the remaining 33.3% of its joint venture operation Hydrox Holdings Pty Ltd
from WDR Delaware Corporation, a subsidiary of US-based Lowe's Companies Inc. Hydrox operates Masters Home Improvement
and Home Timber & Hardware. The total consideration is yet to be determined and upon acquiring the remaining share of Hydrox,
Woolworths has announced its intention to divest itself of this company.

2015 – March: Woolworths announced that it would divest its $87 million holding in The Warehouse Group Limited, to James Pascoe
Limited, as it was no longer a part of the group’s New Zealand strategy.

2014 – November: The company announced that it had altered the conditions of its alliance with Caltex over its fuel discount
redemption scheme and retail fuel network. As part of the new agreement, several petrol sites and convenience stores would be
rebranded and/or cease participating in the Caltex-Woolworths alliance.

September: Woolworths announced the sale and leaseback of 54 properties held by the ALH Group, to a consortium led by the
Charter Hall Group for $603 million. The transaction was expected to be completed in October.

August: Woolworths received ACCC approval to acquire hardware and timber trader, Hudsons Building Supplies, through the
Woolworths-Lowes Joint Venture.

2013 - August: Woolworths announced the acquisition of New Zealand-based Ezibuy Holdings Ltd for NZ$350 million. Ezibuy retails
homewares and apparel through catalogues, contact centres and online across Australia and New Zealand. The acquisition was
completed during the quarter.

2012 - October: Woolworths announced the creation of Shopping Centres Australasia (SCA) Property Group, a real estate
investment trust which took on the ownership of 69 Australian and New Zealand shopping centres. The trust was valued at
approximately $1.4 billion and was created in an effort to reduce the amount of property held by the company. Woolworths did not
acquire any shares in SCA Property and the new entity was listed on the ASX under the code SCP during the month.

September: Woolworths confirmed the sale of Dick Smith Electronics to private equity firm Anchorage Capital Partners.

January: It was announced that Woolworths was planning to divest the Dick Smith brand. The sale was expected to generate $20
million in cash and be completed in late 2012.

2011 - May: Woolworths announced that the name of its new hardware brand would be Masters. The first Masters outlet was
scheduled to open in the Melbourne suburb of Braybrook in September or October of 2011.

February: Woolworths announced that it would acquire the Cellarmaster Group, a diversified wine company, for approximately $340
million. The acquisition was finalised in May 2011.

2010 - May: John Danks & Son, a subsidiary of Woolworths Ltd, announced its acquisition of the Gunn's chain of hardware stores in
Tasmania for $40 million, and the Becks Timber and Hardware business, also in Tasmania.

2009 - Woolworths entered the hardware retailing sector when Carboxy Pty Ltd, a joint venture between the company and US
hardware retailer Lowe's Companies Inc, purchased Danks Holdings. Danks Holdings was an Australian hardware marketing group,
supplying hardware and administrative support services to over 600 independent hardware retailers, including those trading under the
Home Hardware, Thrifty-Link and Plants Plus Garden Centres brands. The transaction resulted in Woolworths owning 75% of Danks
Holdings.

2007 - Following an appeal by the company, the New Zealand Supreme Court overturned the Commerce Commission's rejection of a
Warehouse Group takeover. The company eventually abandoned the plan in October 2008, following a New Zealand Court of Appeal
ruling which overturned the previous judgement and disallowed the takeover.

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Woolworths Group Limited June 2021

2006 - The company announced its interest in purchasing New Zealand-based diversified retailer, The Warehouse Group, and
secured a strategic stake of 9.43% in the company. The New Zealand competition regulator rejected the deal the following year.

2005 - The company reacquired the Woolworths chain in New Zealand. In October, Australian Leisure and Hospitality Group
purchased the Taverner Hotel Group, operator of 33 leasehold hotel sites in Victoria, New South Wales and South Australia. In
March, Bruandwo, a company Woolworth jointly-owned with the Bruce Methieson group, acquired Australian Leisure and Hospitality
Group (ALH), an operator of a number of licensed venues throughout Australia.

2003 - The company announced a retail venture with fuel retailer Caltex, to create a network of co-branded sites in competition with
the recent joint venture announced by Shell and Coles-Myer. Caltex Woolworths (Caltex Safeway in Victoria) branding was rolled out
to 450 Sites throughout Australia the following year.

2002 - Woolworths sold the Queensland operations of Australian Independent Wholesalers to Australian Retail Logistix Ltd in
December.

2001 - The company acquired Tandy Electronics from the Canadian retailer, Intertan Incorporated, and 71 supermarkets from the
Hong-Kong-owned Franklins chain. The company also purchased the online groceries store, greengrocer.com.au, and established
the liquor retail chain, BWS, during the year.

2000 - The company disposed of its Chisholm meat, printing and packaging business, and Rockmans clothing stores.

1999 - In partnership with the Commonwealth Bank, the company launched the Ezy Banking service, which offered banking services
in store.

1998 - Woolworths acquired the Dan Murphy liquor chain and announced its first foray into online retailing with homeshop.com.au in
December.

1996 - The company made its entry into the petrol retail industry, opening the first Woolworths Plus Petrol outlet in Dubbo, New South
Wales. In July, the company purchased groceries wholesaler, Cannons Group, a supplier to independent retailers in the ACT and
Southern New South Wales.

1993 - In July, Woolworths was spun-off from Adelaide Steamship and relisted on the ASX in a $2.45 billion public float, which at the
time, was the largest in Australian history. The sale was part of Adelaide Steamship Group's gradual dismantling from 1991.

1989 - The company was purchased by Australian diversified investment company, Industrial Equity Limited, part of the Adelaide
Steamship Group.

1985 - The purchase of Victorian chain Safeway added 126 supermarkets to the group's portfolio.

1983 - Woolworths acquired electronics retail chain Dick Smith Electronics.

1978 - The company sold its remaining 40% stake in the Woolworths New Zealand grocery business to L D Nathan and Co Ltd, a
retailer and antecedent to Lion Nathan Limited. Woolworths sold its equity holding in L D Nathan the following year.

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Woolworths Group Limited June 2021

1960 - The company commenced selling liquor with the purchase of a liquor store in Leederville, Western Australia. Woolworths was
now running over 300 stores, and with its purchase of Northern Territory-based grocer Centralian Traders Pty Ltd, was now operating
in every Australian state.

1927 - The company established a branch in Brisbane. By 1930, the company had sixteen stores across New South Wales,
Queensland and Western Australia, and a store in Wellington, New Zealand.

1924 - The company commenced operation in Sydney as Woolworths Stupendous Bargain Basement, a discount retailer. The
company was named after the F W Woolworths five and dime stores in the United States, but was otherwise unrelated.

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