Woolworths Group Limited

together2021 ANNUAL REPORTABN 88 000 014 675WOOLWORTHS GROUP LIMITEDLive better     Contents

SECTION 1
PERFORMANCE HIGHLIGHTS

Our impact 
Sustainability 
How we create value 
Our key strategic priorities 
Chairman's Report 
Chief Executive Officer’s Report 
Group financial performance 

2
4
6
8
14
16
18

SECTION 2
BUSINESS REVIEW

Australian Food  
New Zealand Food 
BIG W 
Discontinued operation  
Our material risks 

24
30
32
34
36

SECTION 3
DIRECTORS’ REPORT

Governance 
Board skills and experience 
Board of Directors 
Group Executive Committee 
Directors’ Statutory Report 
Remuneration Report 

42
43
44
46
50
52

SECTION 4
FINANCIAL REPORT

Auditor's Independence Declaration 
Financial Report 
Directors’ Declaration 
Independent Auditor’s Report 

76
77
152
153

Acknowledgement of Country 

Woolworths Group acknowledges the Traditional Custodians of Country 
throughout Australia and recognises their continuing connection to land, 
waters and community. We pay our respects to them and their cultures; 
and to Elders both past and present. 

We support the Uluru Statement from the Heart and the recognition 
of Aboriginal and Torres Strait Islander peoples in the Australian 
Constitution. We commit to continued listening and learning from 
First Nations voices and to work in partnership to create change. We 
acknowledge that we have a responsibility and must do more to truly live 
our purpose to create better experiences together for a better tomorrow.

SECTION 5
OTHER INFORMATION

Shareholder information 
Corporate Governance Statement 
Glossary 
Company directory 

158
159
161
164

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Building a strong 

foundation for 

a new era of 

Woolworths Group

Woolworths Group is a diverse 

group of retail businesses on a 

journey to becoming a purpose‑led 

organisation. Our Group purpose, 

we create better experiences 

together for a better tomorrow, 

creates the framework for how 

we aspire to operate, to be better; 

for our customers, our team, 

the communities we serve 

and our shareholders.

 
 
 
 
Contents

SECTION 1

PERFORMANCE HIGHLIGHTS

Our impact 

Sustainability 

How we create value 

Our key strategic priorities 

Chairman's Report 

Chief Executive Officer’s Report 

Group financial performance 

2

4

6

8

14

16

18

SECTION 2

BUSINESS REVIEW

Australian Food  

New Zealand Food 

BIG W 

Discontinued operation  

Our material risks 

24

30

32

34

36

SECTION 3

DIRECTORS’ REPORT

Governance 

Board skills and experience 

Board of Directors 

Group Executive Committee 

Directors’ Statutory Report 

Remuneration Report 

42

43

44

46

50

52

SECTION 4

FINANCIAL REPORT

Auditor's Independence Declaration 

Financial Report 

Directors’ Declaration 

Independent Auditor’s Report 

76

77

152

153

Acknowledgement of Country 

Woolworths Group acknowledges the Traditional Custodians of Country 

throughout Australia and recognises their continuing connection to land, 

waters and community. We pay our respects to them and their cultures; 

and to Elders both past and present. 

We support the Uluru Statement from the Heart and the recognition 

of Aboriginal and Torres Strait Islander peoples in the Australian 

Constitution. We commit to continued listening and learning from 

First Nations voices and to work in partnership to create change. We 

acknowledge that we have a responsibility and must do more to truly live 

our purpose to create better experiences together for a better tomorrow.

SECTION 5

OTHER INFORMATION

Shareholder information 

Corporate Governance Statement 

Glossary 

Company directory 

158

159

161

164

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Building a strong 
foundation for 
a new era of 
Woolworths Group

Woolworths Group is a diverse 
group of retail businesses on a 
journey to becoming a purpose‑led 
organisation. Our Group purpose, 
we create better experiences 
together for a better tomorrow, 
creates the framework for how 
we aspire to operate, to be better; 
for our customers, our team, 
the communities we serve 
and our shareholders.

 
 
 
 
PeopleGender EqualityWGEA Employer of Choice for Gender  Equality citation‘I am here’ program32,000team members trained  to identify and support  team members that need helpResourcing the Future Indigenous team members ~5,000Team members210,067ProductGroup Voice of Customer NPS June 57 1pt from Q3'21Customers served on average per week 27.8MOnline visits  per week19.7MCustomersRemoved >2,500 tonnesof plastic from  operations in F21Animal Welfare First Australian and New Zealand retailer to achieve Tier 2 in the global Business Benchmark on Farm Animal WelfareMacro Whole Living Products 100%compliant with  Palm Oil Policy2,905 tonnesof soft plastic returned to storeCustomers using eReceipts>250,000More ways to better serve our customers 31,074 Supermarkets and  Metro Food Stores184 Countdown stores176 BIG W  stores706 Direct to boot locations734 Pick up locations875 Home  Delivery stores10 CFCs and eStoresLGBTQ+ InclusionAwarded AWEI Gold Employer Status for LGBTQ+ workplace inclusion for the fourth consecutive year2Our impact 1PlanetDividend per share 5108¢Return on funds employed 4 15.1%CommunityCarbon emissions27% below2015 baselineFree cash flow before dividends$1,089MGroup sales $67,278MGroup EBIT $3,663MOrganic waste113,238 tonnesdiverted from landfillPower from solar 31,480kWcapacity installedFood relief meals donated>24Mvia store networkEconomic 2Total community  contribution$34.9MIn kind$13.9MCash donations$21.0MLeveraged fundraising$14.1MS.T.A.N.D. donation$2.9MOdd Bunch fruit & vegetables35,506 tonnes purchased by customers1 For the 2021 financial year including Endeavour Group.2 Before significant items.3 Including Australian and New Zealand Food and BIG W.4 F21 ROFE calculation normalised to exclude the $7,870 million demerger distribution liability.5 Full year fully franked dividend.6 From Woolworths Group cash flow.Tax paid 6$738M12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 20213PeopleGender EqualityWGEA Employer of Choice for Gender  Equality citation‘I am here’ program32,000team members trained  to identify and support  team members that need helpResourcing the Future Indigenous team members ~5,000Team members210,067ProductGroup Voice of Customer NPS June 57 1pt from Q3'21Customers served on average per week 27.8MOnline visits  per week19.7MCustomersRemoved >2,500 tonnesof plastic from  operations in F21Animal Welfare First Australian and New Zealand retailer to achieve Tier 2 in the global Business Benchmark on Farm Animal WelfareMacro Whole Living Products 100%compliant with  Palm Oil Policy2,905 tonnesof soft plastic returned to storeCustomers using eReceipts>250,000More ways to better serve our customers 31,074 Supermarkets and  Metro Food Stores184 Countdown stores176 BIG W  stores706 Direct to boot locations734 Pick up locations875 Home  Delivery stores10 CFCs and eStoresLGBTQ+ InclusionAwarded AWEI Gold Employer Status for LGBTQ+ workplace inclusion for the fourth consecutive year2Our impact 1PlanetDividend per share 5108¢Return on funds employed 4 15.1%CommunityCarbon emissions27% below2015 baselineFree cash flow before dividends$1,089MGroup sales $67,278MGroup EBIT $3,663MOrganic waste113,238 tonnesdiverted from landfillPower from solar 31,480kWcapacity installedFood relief meals donated>24Mvia store networkEconomic 2Total community  contribution$34.9MIn kind$13.9MCash donations$21.0MLeveraged fundraising$14.1MS.T.A.N.D. donation$2.9MOdd Bunch fruit & vegetables35,506 tonnes purchased by customers1 For the 2021 financial year including Endeavour Group.2 Before significant items.3 Including Australian and New Zealand Food and BIG W.4 F21 ROFE calculation normalised to exclude the $7,870 million demerger distribution liability.5 Full year fully franked dividend.6 From Woolworths Group cash flow.Tax paid 6$738M12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 20213SustainabilityWorking together to create a better tomorrowWoolworths Group believes sustainability is the right thing to do and sees it as an opportunity to create long‑term value through innovation and resilience building measures that will deliver benefits for decades to come.Woolworths Group is committed to creating positive change in our business and our extended value chain. We want to give our customers confidence that their food and everyday needs are delivered to them ethically and sustainably – truly creating better experiences together for a better tomorrow. We are determined to build on the foundations of our 2020 Sustainability Strategy to deliver an even more ambitious sustainability agenda. In November 2020, we released our Sustainability Plan 2025: Working together to create a better tomorrow – our new program of positive change for our people, our planet and our product. While we have set our sights on long‑term horizons, including goals for 2030 (scope 1, 2 and 3 emissions) and 2050 (net positive emissions), we will deliver meaningful change year on year. In F22 we will make progress on areas such as green electricity, retail careers in the workplace of the future and regenerative agricultural practices to minimise our impact on the environment.  Climate ChangeRecognising that addressing climate change is of critical importance to our business and economies globally, Woolworths Group has set ambitious emissions reduction goals aligned to the Paris Agreement, to limit temperature change to 1.5 degrees. By 2030 we will deliver:• 63% reduction from own operations (scope 1 & 2), and• 19% reduction across our supply chain (scope 3).Our targets have been endorsed by the global Science Based Targets initiative (SBTi).The Group’s F21 scope 1 and 2 emissions were 27% below 2015 levels. Initiatives contributing to this reduction include refrigeration management, solar rollout, and our Energy Management Centre which continues to proactively manage our energy use.Electricity use is the largest contributor to our greenhouse gas emissions. Woolworths Group uses around 1% of Australia’s electricity, so our commitment to source 100% renewable electricity by 2025 represents Responsible Sourcing F21 PerformanceAudits reviewed561Workers surveyed to understand COVID-19 related concerns 2,694BIG W team members and suppliers completed a Responsible Purchasing Practices survey111Onsite follow-up visits16Grievance investigations managed 19Zero Tolerance cases identified204a significant investment in growing the industry. In June, we announced our first renewable power purchase agreement (PPA) which will inject enough green electricity into the state’s energy grid to power 30% of Woolworths Group’s NSW energy needs.Sustainability GovernanceWoolworths Group considers sustainability to be a board‑level strategic issue. The CEO and Group Executive Committee, including the Chief Sustainability Officer, have accountability for the implementation of our sustainability strategy.Climate‑related risks and opportunities are identified through the Woolworths Group Risk Management Process in line with our Risk Management Framework (RMF) framework. The RMF framework sets out the required end‑to‑end management of our risk assessment and risk response processes, and monitoring and reporting. Climate change has been identified as a material business risk and is included in the material risk section of the Annual Report on page 36. Our response to these risks is contained in our Sustainability Plan 2025.  For more information see 2021 Sustainability Report.Human rights key highlights in F21• Conducted a risk analysis of labour and service providers in our operations and strengthened key controls• Developed bespoke due diligence strategies for higher risk commodities, including seafood and cotton• Oversaw the repayment of $361,851 to 24 workers in the cleaning and trolley collector sector• Supported our teams to manage modern slavery risks with the launch of three new resources  –A toolkit for addressing modern slavery in our supply chains and operations –A guide to drafting and negotiating modern slavery contract clauses  –Human rights due diligence maturity frameworkCarbon emissions reduction 27%below 2015 levelsF21 Plastics reduction >2,500tCommunity  contribution as %  of EBT on a 2-year  rolling average1.23%Human Rights & Responsible SourcingAs Australia’s largest retailer, with complex operations and supply chains, Woolworths Group is exposed to dynamic human rights risks. Stakeholders continue to identify human rights as one of our material risks. The human rights commitments in the Sustainability Plan 2025 articulate our ambition to build a rights‑respecting culture where human rights risks are identified, managed and mitigated in our operations and supply chain. Progress highlights against this important initiative can be found on the left bar on page 4. As outlined in our second Modern Slavery Statement we continue to scale up our human rights due diligence in non‑trade and operations, while maintaining focus on commodities and countries with higher modern slavery risks to improve outcomes for workers. Human rights due diligence is an ongoing process of bringing the concerns of potentially affected stakeholders into consideration for decision making. For more information see 2021 Modern Slavery Statement.We act like a leader and speak up on issues that matterWe care for, and unlock the potential of our peopleWe have a positive impact on the planetWe apply circular thinking in everything we doWe embrace the power of partnerships to create changeOur plan is explicitly underpinned by our Guiding Principles12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 20215SustainabilityWorking together to create a better tomorrowWoolworths Group believes sustainability is the right thing to do and sees it as an opportunity to create long‑term value through innovation and resilience building measures that will deliver benefits for decades to come.Woolworths Group is committed to creating positive change in our business and our extended value chain. We want to give our customers confidence that their food and everyday needs are delivered to them ethically and sustainably – truly creating better experiences together for a better tomorrow. We are determined to build on the foundations of our 2020 Sustainability Strategy to deliver an even more ambitious sustainability agenda. In November 2020, we released our Sustainability Plan 2025: Working together to create a better tomorrow – our new program of positive change for our people, our planet and our product. While we have set our sights on long‑term horizons, including goals for 2030 (scope 1, 2 and 3 emissions) and 2050 (net positive emissions), we will deliver meaningful change year on year. In F22 we will make progress on areas such as green electricity, retail careers in the workplace of the future and regenerative agricultural practices to minimise our impact on the environment.  Climate ChangeRecognising that addressing climate change is of critical importance to our business and economies globally, Woolworths Group has set ambitious emissions reduction goals aligned to the Paris Agreement, to limit temperature change to 1.5 degrees. By 2030 we will deliver:• 63% reduction from own operations (scope 1 & 2), and• 19% reduction across our supply chain (scope 3).Our targets have been endorsed by the global Science Based Targets initiative (SBTi).The Group’s F21 scope 1 and 2 emissions were 27% below 2015 levels. Initiatives contributing to this reduction include refrigeration management, solar rollout, and our Energy Management Centre which continues to proactively manage our energy use.Electricity use is the largest contributor to our greenhouse gas emissions. Woolworths Group uses around 1% of Australia’s electricity, so our commitment to source 100% renewable electricity by 2025 represents Responsible Sourcing F21 PerformanceAudits reviewed561Workers surveyed to understand COVID-19 related concerns 2,694BIG W team members and suppliers completed a Responsible Purchasing Practices survey111Onsite follow-up visits16Grievance investigations managed 19Zero Tolerance cases identified204a significant investment in growing the industry. In June, we announced our first renewable power purchase agreement (PPA) which will inject enough green electricity into the state’s energy grid to power 30% of Woolworths Group’s NSW energy needs.Sustainability GovernanceWoolworths Group considers sustainability to be a board‑level strategic issue. The CEO and Group Executive Committee, including the Chief Sustainability Officer, have accountability for the implementation of our sustainability strategy.Climate‑related risks and opportunities are identified through the Woolworths Group Risk Management Process in line with our Risk Management Framework (RMF) framework. The RMF framework sets out the required end‑to‑end management of our risk assessment and risk response processes, and monitoring and reporting. Climate change has been identified as a material business risk and is included in the material risk section of the Annual Report on page 36. Our response to these risks is contained in our Sustainability Plan 2025.  For more information see 2021 Sustainability Report.Human rights key highlights in F21• Conducted a risk analysis of labour and service providers in our operations and strengthened key controls• Developed bespoke due diligence strategies for higher risk commodities, including seafood and cotton• Oversaw the repayment of $361,851 to 24 workers in the cleaning and trolley collector sector• Supported our teams to manage modern slavery risks with the launch of three new resources  –A toolkit for addressing modern slavery in our supply chains and operations –A guide to drafting and negotiating modern slavery contract clauses  –Human rights due diligence maturity frameworkCarbon emissions reduction 27%below 2015 levelsF21 Plastics reduction >2,500tCommunity  contribution as %  of EBT on a 2-year  rolling average1.23%Human Rights & Responsible SourcingAs Australia’s largest retailer, with complex operations and supply chains, Woolworths Group is exposed to dynamic human rights risks. Stakeholders continue to identify human rights as one of our material risks. The human rights commitments in the Sustainability Plan 2025 articulate our ambition to build a rights‑respecting culture where human rights risks are identified, managed and mitigated in our operations and supply chain. Progress highlights against this important initiative can be found on the left bar on page 4. As outlined in our second Modern Slavery Statement we continue to scale up our human rights due diligence in non‑trade and operations, while maintaining focus on commodities and countries with higher modern slavery risks to improve outcomes for workers. Human rights due diligence is an ongoing process of bringing the concerns of potentially affected stakeholders into consideration for decision making. For more information see 2021 Modern Slavery Statement.We act like a leader and speak up on issues that matterWe care for, and unlock the potential of our peopleWe have a positive impact on the planetWe apply circular thinking in everything we doWe embrace the power of partnerships to create changeOur plan is explicitly underpinned by our Guiding Principles12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 20215How we create valueTeam A diverse and inclusive environment for our teams to work reflecting the diversity of our communitiesCustomer services Connecting customers with good food and more everyday through convenient stores, services and leading loyalty programsTrusted brands and products Providing best range and value, fresher food, healthier options and everyday needs for our customers in Australia and New Zealand Sustainability A leader in sustainability to create a positive impact for generations to comeBusiness platforms Leading business platforms built over many years enabling our business activitiesFinancial Strong balance sheet and disciplined capital allocation to drive sustainable growth and shareholder value Platforms & PartnersEveryday ServicesTechnology, digital and analytics enable retail platforms that deliver for Woolworths Group and partnersPrimary ConnectPartnershipsDigital  & DataB2C FoodOur cornerstone retail food businesses, famous for good food, prices and acts, and always convenientStoreseCommerceProductsOur Value DriversOur Business Activities6Team Enabling and empowering our teamCustomer Innovating to meet our customer needsCommunity Caring for each other and creating a more sustainable futurePartners Mutual benefit through strong partnershipsShareholders Delivering sustainable returns for our shareholdersEveryday ServicesComplementary everyday categories and services to provide more for our customersEveryday ServicesRewardsEveryday NeedsB2B FoodExpanding food into new customer segments, channels and marketsB2BInternationalWholesaleTo create value we bring our customers good food and more everyday through connected experiences. We’re focused on creating sustainable long‑term value for our customers, team, shareholders, trade partners and the broader community through living our purpose:Creating better experiences together for a better tomorrowWGEAEmployer of Choice citationLAUNCHEDWoolworths Future of Work FundAWEIGold Tier Status for LGBTQ+ inclusion57Group Voice of Customer NPS (June)QuantiumStrengthened data and analytics partnershipEstablished partnerships with Endeavour Group and PFD113,238Tonnes of organic waste diverted from landfill$1,972MF21 Group NPAT 227.8MCustomers served  on average per week57%Voice of Supplier July 202127%Carbon emission reduction from 201519.7MOnline visits  per week$34.9Mtotal community contributions108¢F21 Full Year DividendValue Created11 For the 2021 financial year. 2 Before significant items.3 F21 ROFE calculation normalised to exclude the $7,870 million  demerger distribution liability.15.1%F21 ROFE 3 12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 20217How we create valueTeam A diverse and inclusive environment for our teams to work reflecting the diversity of our communitiesCustomer services Connecting customers with good food and more everyday through convenient stores, services and leading loyalty programsTrusted brands and products Providing best range and value, fresher food, healthier options and everyday needs for our customers in Australia and New Zealand Sustainability A leader in sustainability to create a positive impact for generations to comeBusiness platforms Leading business platforms built over many years enabling our business activitiesFinancial Strong balance sheet and disciplined capital allocation to drive sustainable growth and shareholder value Platforms & PartnersEveryday ServicesTechnology, digital and analytics enable retail platforms that deliver for Woolworths Group and partnersPrimary ConnectPartnershipsDigital  & DataB2C FoodOur cornerstone retail food businesses, famous for good food, prices and acts, and always convenientStoreseCommerceProductsOur Value DriversOur Business Activities6Team Enabling and empowering our teamCustomer Innovating to meet our customer needsCommunity Caring for each other and creating a more sustainable futurePartners Mutual benefit through strong partnershipsShareholders Delivering sustainable returns for our shareholdersEveryday ServicesComplementary everyday categories and services to provide more for our customersEveryday ServicesRewardsEveryday NeedsB2B FoodExpanding food into new customer segments, channels and marketsB2BInternationalWholesaleTo create value we bring our customers good food and more everyday through connected experiences. We’re focused on creating sustainable long‑term value for our customers, team, shareholders, trade partners and the broader community through living our purpose:Creating better experiences together for a better tomorrowWGEAEmployer of Choice citationLAUNCHEDWoolworths Future of Work FundAWEIGold Tier Status for LGBTQ+ inclusion57Group Voice of Customer NPS (June)QuantiumStrengthened data and analytics partnershipEstablished partnerships with Endeavour Group and PFD113,238Tonnes of organic waste diverted from landfill$1,972MF21 Group NPAT 227.8MCustomers served  on average per week57%Voice of Supplier July 202127%Carbon emission reduction from 201519.7MOnline visits  per week$34.9Mtotal community contributions108¢F21 Full Year DividendValue Created11 For the 2021 financial year. 2 Before significant items.3 F21 ROFE calculation normalised to exclude the $7,870 million  demerger distribution liability.15.1%F21 ROFE 3 12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 20217In F21, the six key priorities reflect the Group’s transformation into a food and everyday needs ecosystem which is enabled by our purpose, to create better experiences together for a better tomorrow.Better Together for a Better Tomorrow for our Customers, Teams and CommunitiesDelivering on our strategic prioritiesThe Group was proud to be ranked first in Australia, and 49th globally in the 2020 Refinitiv Diversity & Inclusion Index, as the most diverse and inclusive company. In F21, we continued to make good progress on our holistic diversity and inclusion agenda, with a key focus on reconciliation, cultural inclusion, gender diversity and LGBTQ+ inclusion. Some highlights include receiving AWEI gold tier status for a fourth consecutive year and the WGEA Employer of Choice citation. We also delivered 85 actions as part of our two‑year Reconciliation Action Plan, partnered with the NAIDOC Week Committee for a third year, and continued the success of our Refugee Employment Program in partnership with Community Corporate, successfully placing 200 refugees into roles in Woolworths Supermarkets, Metro Food Stores and fulfilment centres across Australia. F22 will see an increased focus on our accessibility agenda and more work will be done to support our commitment of offering equal opportunities for all.Launch of our third mini-Supermarket for special schools at Black Mountain School in Canberra, NSW.   For more information on this initiative go to page 27.2021 Better Tomorrow achievementsProvided the equivalent of>24M  meals through  our food rescue partners to alleviate food insecurityPLANETPRODUCT#1 Most diverse and inclusive company in Australia in the 2020 Refinitiv Diversity & Inclusion IndexPEOPLEAnimal Welfare First Australian and New Zealand retailer to achieve Tier 2 in the global Business Benchmark on Farm Animal Welfare8WooliesX scaled its convenience propositions in response to  increased demand in F21 as more and  more customers  chose contactless,  COVIDSafe shopping experiences.To continue to meet rapidly increasing demand, we announced plans for our first automated customer fulfilment centre to be built in Auburn, NSW, set to open in 2024. The facility will be built in partnership with Knapp, whose automation technology will help Woolworths’ personal shoppers pick and dispatch up to 50,000 home deliveries a week in Western Sydney and better serve their growing online grocery needs. This will build on recent investments with Takeoff’s micro‑fulfilment technology (using Knapp automation) now live at Carrum Downs and Maroochydore in Australia, and Moorehouse and Penrose in New Zealand. In F21, eCommerce sales accounted for 8.5% of total sales as we continue to see more and more customers choosing eCommerce services to complement their in‑store shopping experiences.Accelerate Digital, eCom and Convenience for our increasingly Connected CustomersMore convenience for customers in F21629stores with Direct to boot services425Same Day Delivery  stores with 1 hour delivery window232Delivery Now stores12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 20219In F21, the six key priorities reflect the Group’s transformation into a food and everyday needs ecosystem which is enabled by our purpose, to create better experiences together for a better tomorrow.Better Together for a Better Tomorrow for our Customers, Teams and CommunitiesDelivering on our strategic prioritiesThe Group was proud to be ranked first in Australia, and 49th globally in the 2020 Refinitiv Diversity & Inclusion Index, as the most diverse and inclusive company. In F21, we continued to make good progress on our holistic diversity and inclusion agenda, with a key focus on reconciliation, cultural inclusion, gender diversity and LGBTQ+ inclusion. Some highlights include receiving AWEI gold tier status for a fourth consecutive year and the WGEA Employer of Choice citation. We also delivered 85 actions as part of our two‑year Reconciliation Action Plan, partnered with the NAIDOC Week Committee for a third year, and continued the success of our Refugee Employment Program in partnership with Community Corporate, successfully placing 200 refugees into roles in Woolworths Supermarkets, Metro Food Stores and fulfilment centres across Australia. F22 will see an increased focus on our accessibility agenda and more work will be done to support our commitment of offering equal opportunities for all.Launch of our third mini-Supermarket for special schools at Black Mountain School in Canberra, NSW.   For more information on this initiative go to page 27.2021 Better Tomorrow achievementsProvided the equivalent of>24M  meals through  our food rescue partners to alleviate food insecurityPLANETPRODUCT#1 Most diverse and inclusive company in Australia in the 2020 Refinitiv Diversity & Inclusion IndexPEOPLEAnimal Welfare First Australian and New Zealand retailer to achieve Tier 2 in the global Business Benchmark on Farm Animal Welfare8WooliesX scaled its convenience propositions in response to  increased demand in F21 as more and  more customers  chose contactless,  COVIDSafe shopping experiences.To continue to meet rapidly increasing demand, we announced plans for our first automated customer fulfilment centre to be built in Auburn, NSW, set to open in 2024. The facility will be built in partnership with Knapp, whose automation technology will help Woolworths’ personal shoppers pick and dispatch up to 50,000 home deliveries a week in Western Sydney and better serve their growing online grocery needs. This will build on recent investments with Takeoff’s micro‑fulfilment technology (using Knapp automation) now live at Carrum Downs and Maroochydore in Australia, and Moorehouse and Penrose in New Zealand. In F21, eCommerce sales accounted for 8.5% of total sales as we continue to see more and more customers choosing eCommerce services to complement their in‑store shopping experiences.Accelerate Digital, eCom and Convenience for our increasingly Connected CustomersMore convenience for customers in F21629stores with Direct to boot services425Same Day Delivery  stores with 1 hour delivery window232Delivery Now stores12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 2021911

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Stand up 

Endeavour Group

At the end of June, the 

demerger of Endeavour 

Group was successfully 

completed following 

a multi‑year journey to 

separate the business.

The separation process formally began 

on 3 July 2019, when Woolworths Group 

announced its intention to combine 

its drinks and hospitality businesses 

to create Endeavour Group through 

a restructure of Endeavour Drinks and 

subsequent merger with ALH Group. 

This was completed in February 2020; 

however, the separation anticipated 

for later that year was delayed to 2021 

given the prioritisation of both groups’ 

COVID‑19 responses. Both businesses 

continued to work on the separation 

as well as establishing the partnership 

agreements to support the ongoing 

relationship between the groups. 

Work on the separation formally 

recommenced in February 2021. 

A strong and experienced executive 

team and board was assembled to take 

the business forward following the 

appointment of Steve Donohue as CEO 

and Peter Hearl as Chairman in 2019. 

Following formal approval at the General 

Meeting on 18 June, Endeavour Group was 

successfully separated on 28 June by way 

of a demerger, with eligible shareholders 

receiving one Endeavour Group share for 

every share held in Woolworths Group.

The demerger of Endeavour Group 

required an enormous combined effort 

from team members across both 

businesses and we look forward to being 

better together in partnership with 

Endeavour Group for many years to come.

Better together in partnership 

The creation of a win-win partnership was at the core of the rationale for the 

Endeavour Group separation. Post demerger, Woolworths Group and Endeavour 

Group will continue to work together to retain ongoing benefits, including the 

infrastructure built by Woolworths Group across its core competencies.

The key benefits under the partnership agreements include a framework 

that supports joint growth opportunities and further develops capabilities 

for mutual benefit; enables both groups to maintain the synergies and 

collaborative relationships, and supports Endeavour Group with continuity 

of its operations. 

This is enabled by key agreements in place across:

Supply Chain & Stores

Loyalty & Fintech

•  Digital & Media

Business Support

International

• 

• 

• 

• 

The partnership agreements between Woolworths Group and Endeavour 

Group also extend choice for customers to meet their everyday needs 

through its businesses and partners.

Steve Donohue, Endeavour Group CEO and Brad Banducci, Woolworths Group CEO and Managing Director.

OUR KEY STRATEGIC PRIORITIESWoolworths Supermarkets launches innovative community store in Cabramatta.A key priority for Woolworths Supermarkets in F21 has been to localise range and tailor our offering for every community to ensure we are providing the right range to our customers in the right stores. This includes an increased focus on ethnicity and as part of this, the team delivered its first innovative community store in Cabramatta, NSW. The goal was to extend the already successful Asian range and provide customers with a broad enough range that they could complete their full shop at the store. The store includes over 1,000 Asian products with over 300 being unique to the store. The introduction of these new lines further tailored the range to the local community consisting of customers of predominantly Vietnamese, Chinese, Thai and Cambodian ethnicities, and focuses on what is important to their shopping needs. In addition to the tailored ranging, the Cabramatta store also features multilingual signage (Cambodian, Cantonese and Khmer) across all functional areas and neon iconography for high level navigation.Differentiate our Food Customer Propositions10 
 
 
 
 
 
 
 
11

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Better together in partnership 

The creation of a win-win partnership was at the core of the rationale for the 
Endeavour Group separation. Post demerger, Woolworths Group and Endeavour 
Group will continue to work together to retain ongoing benefits, including the 
infrastructure built by Woolworths Group across its core competencies.

The key benefits under the partnership agreements include a framework 
that supports joint growth opportunities and further develops capabilities 
for mutual benefit; enables both groups to maintain the synergies and 
collaborative relationships, and supports Endeavour Group with continuity 
of its operations. 

This is enabled by key agreements in place across:

• 

• 

Supply Chain & Stores

Loyalty & Fintech

•  Digital & Media

• 

• 

Business Support

International

The partnership agreements between Woolworths Group and Endeavour 
Group also extend choice for customers to meet their everyday needs 
through its businesses and partners.

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Steve Donohue, Endeavour Group CEO and Brad Banducci, Woolworths Group CEO and Managing Director.

Stand up 
Endeavour Group

At the end of June, the 
demerger of Endeavour 
Group was successfully 
completed following 
a multi‑year journey to 
separate the business.

The separation process formally began 
on 3 July 2019, when Woolworths Group 
announced its intention to combine 
its drinks and hospitality businesses 
to create Endeavour Group through 
a restructure of Endeavour Drinks and 
subsequent merger with ALH Group. 

This was completed in February 2020; 
however, the separation anticipated 
for later that year was delayed to 2021 
given the prioritisation of both groups’ 
COVID‑19 responses. Both businesses 
continued to work on the separation 
as well as establishing the partnership 
agreements to support the ongoing 
relationship between the groups. 

Work on the separation formally 
recommenced in February 2021. 
A strong and experienced executive 
team and board was assembled to take 
the business forward following the 
appointment of Steve Donohue as CEO 
and Peter Hearl as Chairman in 2019. 

Following formal approval at the General 
Meeting on 18 June, Endeavour Group was 
successfully separated on 28 June by way 
of a demerger, with eligible shareholders 
receiving one Endeavour Group share for 
every share held in Woolworths Group.

The demerger of Endeavour Group 
required an enormous combined effort 
from team members across both 
businesses and we look forward to being 
better together in partnership with 
Endeavour Group for many years to come.

OUR KEY STRATEGIC PRIORITIESWoolworths Supermarkets launches innovative community store in Cabramatta.A key priority for Woolworths Supermarkets in F21 has been to localise range and tailor our offering for every community to ensure we are providing the right range to our customers in the right stores. This includes an increased focus on ethnicity and as part of this, the team delivered its first innovative community store in Cabramatta, NSW. The goal was to extend the already successful Asian range and provide customers with a broad enough range that they could complete their full shop at the store. The store includes over 1,000 Asian products with over 300 being unique to the store. The introduction of these new lines further tailored the range to the local community consisting of customers of predominantly Vietnamese, Chinese, Thai and Cambodian ethnicities, and focuses on what is important to their shopping needs. In addition to the tailored ranging, the Cabramatta store also features multilingual signage (Cambodian, Cantonese and Khmer) across all functional areas and neon iconography for high level navigation.Differentiate our Food Customer Propositions10 
 
 
 
 
 
 
 
OUR KEY STRATEGIC PRIORITIESWoolworths Group’s investment in Quantium aims to transform the rapidly evolving retail sector to help better service our customers and support our team and supplier partners.Announced in April of this year, Woolworths Group strengthened its partnership with Quantium by increasing its shareholding from 47% to 75%.Quantium is an industry leader in advanced analytics, working across a broad range of industries, including retail & FMCG, banking & financial services, and health & government. For the last eight years Woolworths Group and Quantium have partnered to better understand our customers through the responsible use of data. Quantium will become a key part of Woolworths Group, while retaining its senior leadership team and continuing to operate in sectors outside of retail.In addition to the strategic partnership, new business Q‑Retail was created to bring together the best data science and advanced analytics and retail capabilities from across Quantium and Woolworths Group. Specifically, Q‑Retail will focus on delivering Woolworths Group’s Advanced Analytics Plan and commercialising retail products globally.Combined with the Group’s strategic focus on connected and seamless customer experiences, advanced analytics will be key to improving ranges and services as well as support provided to team members and supplier partners. As the retail industry continues to rapidly change, Woolworths Group recognises that the way in which data is gathered, interpreted and protected is becoming ever more important.Evolve our Portfolio and Build Strong AdjacenciesBuilding strong adjacenciesAUGUST 2020Announced a strategic investment in PFD Food Services as a logical adjacency for Woolworths Group to further support its growing food and everyday needs ecosystem.SEPTEMBER 2020Launched Woolworths at Work, a procurement solution that supports businesses with a streamlined shopping experience and dedicated support, transforming how they manage spending and budget.FEBRUARY 2021Announced the formation of a stand-alone business, Greenstock, to support the Group’s growth and deliver on the combined red meat needs of partners across retail, international and wholesale.APRIL 2021Announced an increase in holding in Quantium from 47% to 75%, as Quantium becomes a key part of Woolworths Group, while retaining its senior leadership team and continuing to operate in sectors outside of retail.APRIL 2021Woolworths Group’s venture capital arm W23 announced an investment in Australian startup Marketplacer whose platform is used by a number of global retailers exploring third-party marketplace strategies. The partnership will play a key role in powering the Group’s own digital improvements ahead of the launch of a marketplace offering for woolworths.com.au.JUNE 2021Woolworths Group announced the launch of Wpay to offer end-to-end payment solutions to merchants outside of the Group.12We have been working hard to help protect our team so we can continue to provide food and everyday needs for all customers. The Delta variant of COVID has seen the operating environment change rapidly again in 2021. It has become clear that vaccination is key and Woolworths Group remains committed to playing its part in supporting vaccination efforts across the broader community. In addition, a number of initiatives have been rolled out to stores and distribution centres to help protect customers and teams. This includes enabling Government QR code check‑in for all states and territories, in‑store Health Ambassadors, promotion of the Sonder app to support team member mental wellbeing as well as face shields and additional cleaning procedures across stores in high‑risk areas.Keep our business COVIDSafe and Futureproof our E2E Operating ModelCOVIDSafeVaccination clinicsEstablished pop-up vaccination clinics at key food-related DCs in NSW and Victoria with assistance from Federal and State governmentsPaid leave for vaccinationsProvided up to eight hours of paid leave for full-time and part-time team members to receive vaccinationsQR check-inEnabled Government QR code check-in at our stores and support sites nationwide Testing and health screeningEstablished five testing facilities across Sydney DCs and CFCs. Rolled out contact tracing wristbands, split shifts and health screening for team membersVulnerable customer supportScaled eCommerce and Priority Assistance to support our most vulnerable customersNext generation supply chainWoolworths Group’s supply chain arm, Primary Connect, commenced building works  in May this year on its new national distribution centre (NDC) in the Moorebank Logistics Park in Western Sydney. Set to open in 2024, the Moorebank NDC will service more than 1,000 Woolworths Supermarkets across Australia. The site will be co-located with the Moorebank Regional Distribution Centre, which will start construction later and open in 2025. With cutting-edge automation and 75,000 square metre of floor space across both sites, Moorebank will enable Woolworths to offer its customers an expanded range and improved stock availability in-store.The construction of a new temperature-controlled 76,000 square metre facility was also announced in June. The new facility will be built at Wetherill Park, Sydney and will service over 280 stores in NSW and replace the current fragmented temperature-controlled network. With completion expected in F24, the new facility will result in fresher products for customers, allow for ongoing range expansion and also deliver material transport and operating efficiency benefits from F25 onwards.12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 202113OUR KEY STRATEGIC PRIORITIESWoolworths Group’s investment in Quantium aims to transform the rapidly evolving retail sector to help better service our customers and support our team and supplier partners.Announced in April of this year, Woolworths Group strengthened its partnership with Quantium by increasing its shareholding from 47% to 75%.Quantium is an industry leader in advanced analytics, working across a broad range of industries, including retail & FMCG, banking & financial services, and health & government. For the last eight years Woolworths Group and Quantium have partnered to better understand our customers through the responsible use of data. Quantium will become a key part of Woolworths Group, while retaining its senior leadership team and continuing to operate in sectors outside of retail.In addition to the strategic partnership, new business Q‑Retail was created to bring together the best data science and advanced analytics and retail capabilities from across Quantium and Woolworths Group. Specifically, Q‑Retail will focus on delivering Woolworths Group’s Advanced Analytics Plan and commercialising retail products globally.Combined with the Group’s strategic focus on connected and seamless customer experiences, advanced analytics will be key to improving ranges and services as well as support provided to team members and supplier partners. As the retail industry continues to rapidly change, Woolworths Group recognises that the way in which data is gathered, interpreted and protected is becoming ever more important.Evolve our Portfolio and Build Strong AdjacenciesBuilding strong adjacenciesAUGUST 2020Announced a strategic investment in PFD Food Services as a logical adjacency for Woolworths Group to further support its growing food and everyday needs ecosystem.SEPTEMBER 2020Launched Woolworths at Work, a procurement solution that supports businesses with a streamlined shopping experience and dedicated support, transforming how they manage spending and budget.FEBRUARY 2021Announced the formation of a stand-alone business, Greenstock, to support the Group’s growth and deliver on the combined red meat needs of partners across retail, international and wholesale.APRIL 2021Announced an increase in holding in Quantium from 47% to 75%, as Quantium becomes a key part of Woolworths Group, while retaining its senior leadership team and continuing to operate in sectors outside of retail.APRIL 2021Woolworths Group’s venture capital arm W23 announced an investment in Australian startup Marketplacer whose platform is used by a number of global retailers exploring third-party marketplace strategies. The partnership will play a key role in powering the Group’s own digital improvements ahead of the launch of a marketplace offering for woolworths.com.au.JUNE 2021Woolworths Group announced the launch of Wpay to offer end-to-end payment solutions to merchants outside of the Group.12We have been working hard to help protect our team so we can continue to provide food and everyday needs for all customers. The Delta variant of COVID has seen the operating environment change rapidly again in 2021. It has become clear that vaccination is key and Woolworths Group remains committed to playing its part in supporting vaccination efforts across the broader community. In addition, a number of initiatives have been rolled out to stores and distribution centres to help protect customers and teams. This includes enabling Government QR code check‑in for all states and territories, in‑store Health Ambassadors, promotion of the Sonder app to support team member mental wellbeing as well as face shields and additional cleaning procedures across stores in high‑risk areas.Keep our business COVIDSafe and Futureproof our E2E Operating ModelCOVIDSafeVaccination clinicsEstablished pop-up vaccination clinics at key food-related DCs in NSW and Victoria with assistance from Federal and State governmentsPaid leave for vaccinationsProvided up to eight hours of paid leave for full-time and part-time team members to receive vaccinationsQR check-inEnabled Government QR code check-in at our stores and support sites nationwide Testing and health screeningEstablished five testing facilities across Sydney DCs and CFCs. Rolled out contact tracing wristbands, split shifts and health screening for team membersVulnerable customer supportScaled eCommerce and Priority Assistance to support our most vulnerable customersNext generation supply chainWoolworths Group’s supply chain arm, Primary Connect, commenced building works  in May this year on its new national distribution centre (NDC) in the Moorebank Logistics Park in Western Sydney. Set to open in 2024, the Moorebank NDC will service more than 1,000 Woolworths Supermarkets across Australia. The site will be co-located with the Moorebank Regional Distribution Centre, which will start construction later and open in 2025. With cutting-edge automation and 75,000 square metre of floor space across both sites, Moorebank will enable Woolworths to offer its customers an expanded range and improved stock availability in-store.The construction of a new temperature-controlled 76,000 square metre facility was also announced in June. The new facility will be built at Wetherill Park, Sydney and will service over 280 stores in NSW and replace the current fragmented temperature-controlled network. With completion expected in F24, the new facility will result in fresher products for customers, allow for ongoing range expansion and also deliver material transport and operating efficiency benefits from F25 onwards.12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 202113CHAIRMAN’S REPORTOver the last 12 months we have remained committed to our purpose of being better together for a better tomorrow and have made significant progress in transforming our business for a new era of Woolworths Group. Our team also continues to operate with vigilance, great care and resilience as we manage the ongoing impacts of COVID. Since the escalation of the Delta outbreak in Australia, I again am humbled and proud of our team and their dedication to do what is right. As part of our ambition for a better tomorrow we also recognise the role we play in creating a safe place for our team as well as our customers. This purpose has guided our response in supporting vaccination efforts where possible to protect our wider communities. A year driven by purpose14Delivering for our shareholdersOur busy agenda in F21 included the successful completion of a key milestone at the end of F21 with the demerger of Endeavour Group. We are confident that it will create value for shareholders with each business now able to focus on their core customer offering and new growth opportunities while continuing to benefit from a strong partnership.We also completed a number of investments to support our continued growth. This included our increased investment in Quantium and the completion of our strategic investment in PFD Food Services, a logical adjacency for the Group and our growing ecosystem. Woolworths Group has declared a final dividend of 55 cents per share bringing the full year dividend to 108 cents per share. Together with the H2 dividend that Endeavour Group is expected to pay, the combined dividend is broadly in line with the improvement in Woolworths Group NPAT before significant items of 22.9%. It is also pleasing to announce the return of $2 billion to shareholders by way of an off‑market buy‑back. Together with the final dividend, this is expected to return $1.1 billion of franking credits to shareholders. The ability to return this capital to our shareholders reflects the strength of our business and our solid balance sheet position which also provides sufficient capital to continue to invest in growth opportunities. Doing the right thingWe have made pleasing progress on our sustainability agenda in F21; however, we recognise there is still much to do to continue to have a positive impact on our wider communities. Across our pillars of People, Planet and Product there have been a number of achievements, including the recognition for our work to improve diversity and inclusion, the signing of our first renewable power purchase agreement, and initiatives to make being healthier easier for our customers with the launch of initiatives such as the online platform HealthyLife.We also recognised that we need to do more to listen and learn when it comes to our commitment to reconciliation. In April of this year the Group made the decision it would not proceed with the proposed Dan Murphy's store in Darwin following an independent review of the development which was commissioned by the Group in December. The report highlighted where we failed to meet our aspirations and standards in our purpose and values, and in doing so, has emboldened us to take meaningful steps forward which are consistent with our purpose and commitment to reconciliation.To reflect our commitment to our purpose and values, we have updated our remuneration incentives from F22 to include the Group’s reputation, which will be externally and independently measured. We considered this to be an important step to align our internal practices on meeting customers and community expectations in order to operate as a responsible corporate citizen. During the year, we made key executive appointments to provide more focus and structure for our commitment to always do the right thing. David Walker was appointed Chief Risk Officer and Alex Holt was appointed Chief Sustainability Officer to reflect the increasing focus in each area. Late last year my fellow directors and I were pleased to welcome Maxine Brenner to the Woolworths Group Board following the retirement of long‑standing board member, Jillian Broadbent. I have no doubt that Maxine’s skills and experience will add tremendous value as Chair of the Risk Committee and to the Woolworths Group Board. Looking aheadI would also like to personally extend my thanks to our team, especially those at the frontline of our operations as they continue to make sure customers have access to their essential needs.In conclusion, despite the uncertain operating environment ahead, I am excited about the next era for Woolworths Group. By focusing on our core businesses, investing in our supply chain, leveraging our strong partnerships and continuing to be guided by our purpose and values, we will continue to create value for all stakeholders while striving for a better tomorrow. Gordon Cairns CHAIRMANF21 Final Dividend55c 14.6% from F20F21 shareholder returns 2$1.3B1 Group before significant items.2 Based on payments during the year.Net profit after tax attributable to Woolworths Group shareholders 1$1,972M 22.9% from F2012345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 202115CHAIRMAN’S REPORTOver the last 12 months we have remained committed to our purpose of being better together for a better tomorrow and have made significant progress in transforming our business for a new era of Woolworths Group. Our team also continues to operate with vigilance, great care and resilience as we manage the ongoing impacts of COVID. Since the escalation of the Delta outbreak in Australia, I again am humbled and proud of our team and their dedication to do what is right. As part of our ambition for a better tomorrow we also recognise the role we play in creating a safe place for our team as well as our customers. This purpose has guided our response in supporting vaccination efforts where possible to protect our wider communities. A year driven by purpose14Delivering for our shareholdersOur busy agenda in F21 included the successful completion of a key milestone at the end of F21 with the demerger of Endeavour Group. We are confident that it will create value for shareholders with each business now able to focus on their core customer offering and new growth opportunities while continuing to benefit from a strong partnership.We also completed a number of investments to support our continued growth. This included our increased investment in Quantium and the completion of our strategic investment in PFD Food Services, a logical adjacency for the Group and our growing ecosystem. Woolworths Group has declared a final dividend of 55 cents per share bringing the full year dividend to 108 cents per share. Together with the H2 dividend that Endeavour Group is expected to pay, the combined dividend is broadly in line with the improvement in Woolworths Group NPAT before significant items of 22.9%. It is also pleasing to announce the return of $2 billion to shareholders by way of an off‑market buy‑back. Together with the final dividend, this is expected to return $1.1 billion of franking credits to shareholders. The ability to return this capital to our shareholders reflects the strength of our business and our solid balance sheet position which also provides sufficient capital to continue to invest in growth opportunities. Doing the right thingWe have made pleasing progress on our sustainability agenda in F21; however, we recognise there is still much to do to continue to have a positive impact on our wider communities. Across our pillars of People, Planet and Product there have been a number of achievements, including the recognition for our work to improve diversity and inclusion, the signing of our first renewable power purchase agreement, and initiatives to make being healthier easier for our customers with the launch of initiatives such as the online platform HealthyLife.We also recognised that we need to do more to listen and learn when it comes to our commitment to reconciliation. In April of this year the Group made the decision it would not proceed with the proposed Dan Murphy's store in Darwin following an independent review of the development which was commissioned by the Group in December. The report highlighted where we failed to meet our aspirations and standards in our purpose and values, and in doing so, has emboldened us to take meaningful steps forward which are consistent with our purpose and commitment to reconciliation.To reflect our commitment to our purpose and values, we have updated our remuneration incentives from F22 to include the Group’s reputation, which will be externally and independently measured. We considered this to be an important step to align our internal practices on meeting customers and community expectations in order to operate as a responsible corporate citizen. During the year, we made key executive appointments to provide more focus and structure for our commitment to always do the right thing. David Walker was appointed Chief Risk Officer and Alex Holt was appointed Chief Sustainability Officer to reflect the increasing focus in each area. Late last year my fellow directors and I were pleased to welcome Maxine Brenner to the Woolworths Group Board following the retirement of long‑standing board member, Jillian Broadbent. I have no doubt that Maxine’s skills and experience will add tremendous value as Chair of the Risk Committee and to the Woolworths Group Board. Looking aheadI would also like to personally extend my thanks to our team, especially those at the frontline of our operations as they continue to make sure customers have access to their essential needs.In conclusion, despite the uncertain operating environment ahead, I am excited about the next era for Woolworths Group. By focusing on our core businesses, investing in our supply chain, leveraging our strong partnerships and continuing to be guided by our purpose and values, we will continue to create value for all stakeholders while striving for a better tomorrow. Gordon Cairns CHAIRMANF21 Final Dividend55c 14.6% from F20F21 shareholder returns 2$1.3B1 Group before significant items.2 Based on payments during the year.Net profit after tax attributable to Woolworths Group shareholders 1$1,972M 22.9% from F2012345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 20211517

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We have also made good progress 

season. In H2, sales declined 5.5% as the 

We acknowledge the environmental 

during the year building out the 

business cycled New Zealand’s restrictive 

impact of our business and we continue 

Group’s ecosystem through a series 

lockdown period. EBIT for the year 

to focus on reducing our footprint with 

of strategic partnerships, investments 

declined by 4.6% reflecting lower sales. 

the installation of solar panels in over 

focus on digital and eCommerce and 

We remain committed to resolving 

and new businesses. In June, we 

completed our strategic investment 

in PFD Food Services to expand our 

food offering into new markets. We 

know how important leveraging data 

and analytics is in the retail industry 

of the future, so we’ve increased our 

ownership of Quantium and created 

a partnership called Q‑Retail to 

accelerate our advanced analytics 

capabilities. We’ve also established 

a number of new businesses, including 

Greenstock, Wpay and HealthyLife to 

provide greater value to our customers 

and meet their changing needs. 

We are also continuing to invest in our 

supply chain transformation which 

will deliver the capacity and capability 

needed to support future growth. In F21 

we opened Melbourne Fresh DC, as well 

as commenced work on the Moorebank 

NDC. This multi‑year transformation 

will enable expanded range and better 

availability for our customers, as well 

as ensuring faster, fresher and more 

efficient deliveries to our stores and 

through our supply chain.

Business performance

The Group’s trading performance in F21 

was strong with sales growth of 5.7% 

and Group EBIT1 increasing by 13.7%. 

In Australian Food, H1 saw strong sales 

growth as a result of our successful 

Disney+ Ooshies and glass container 

campaigns and elevated demand due 

to lockdowns, whereas H2 sales were 

impacted by cycling COVID in the 

final four months of the year. Full year 

Australian Food sales increased by 

5.4%, with EBIT 1 increasing by 9.0%. 

Our WooliesX digital and eCommerce 

business had another year of 

exceptional growth, with eCommerce 

sales increasing by 74.7% compared 

to the prior year. To meet customer 

demand, we continued to scale up 

our convenience propositions with 

an expanded range of Home Delivery 

and Pick up options. 

In New Zealand Food, sales growth in 

H1 was impacted by low market growth, 

particularly during the summer tourist 

1  Before significant items.

BIG W’s momentum continued with 

another strong year of improved 

customer scores, strong sales growth 

of 11.6% and EBIT increasing over 

300% in the year to $172 million. H2 

sales growth moderated as expected 

but remained positive with an increased 

providing customers with safe and 

convenient shopping options. 

Working towards 

a better tomorrow

Right from the start of COVID, we have 

prioritised being COVIDSafe and this 

has continued in F21. We’ve partnered 

with the Federal Government and other 

food retailers, to establish pop‑up 

vaccination clinics at our food‑related 

distribution centres, as well as 

increasing access to vaccines for our 

store teams, who are critical to ensure 

a stable supply of food and everyday 

needs for our customers. No team 

member should have to choose 

between their health and their pay, 

particularly as we know vaccination will 

make shopping safer for our teams and 

customers, and we have revised our 

vaccination leave policy to reflect this. 

Operating sustainably is not only 

important to our customers, but 

it’s increasingly intrinsic to our 

business and the way we operate. 

Setting ambitious and measurable 

sustainability goals as part of our 

Sustainability Plan 2025 launched in 

November last year will help us to play 

our part in making the world a better 

place for a better tomorrow. 

Our people are the core of our business 

and we’re continuing to focus on our 

holistic diversity and inclusion agenda, 

with more work to be done in F22. I’m 

proud that our strong diversity has been 

recognised and celebrated through 

a number of external awards, including 

the WGEA Employer of Choice for 

gender equality citation and AWEI 

gold tier status for LGBTQ+ inclusion 

for the fourth consecutive year.

190 Woolworths Group sites. We also 

signed our first power purchase 

agreement in NSW in F21 as we 

transition to 100% renewable energy by 

2025. We’re also making good progress 

on both eliminating food waste and 

reducing plastic across our products. 

the salaried team underpayments 

announced in 2019. To date, more 

than $350 million has been paid 

to current and former salaried 

team members. During the year, 

we launched a program to enhance 

our pay process integrity and to help 

ensure it doesn’t happen again. 

F22 Outlook

COVID, particularly the 

Delta variant, will continue 

to challenge our business 

and community in F22. 

While it’s difficult to predict 

the environment we’ll be 

operating in over the next 

12 months with any certainty, 

we know that operating 

COVIDSafe is our priority. 

I am confident that we have 

the right foundations in 

place to continue to deliver 

value for our customers, 

teams, communities 

and shareholders. 

Brad Banducci 

CHIEF EXECUTIVE OFFICER

As we continue to be challenged by COVID, in particular the Delta variant, I’m extremely proud of all of our team for their resilience as they continue to demonstrate real care for each other and our customers. We remain committed to operating COVIDSafe and ensuring we are doing the right thing for our team, customers and communities and by leading the way to make shopping safer. Building a strong foundation  for the new eraWe know that the retail industry continues to change rapidly, and we are committed to changing with it. In F20 we outlined plans to transform Woolworths Group into a more focused food and everyday needs ecosystem by building partnerships and delivering adjacent services for our customers, and we have made good progress in F21. At the end of the year we farewelled our Endeavour Group colleagues as the multi‑year journey to separate Endeavour Group was completed through a demerger.  While this was a bittersweet moment, we’re confident that the demerger will deliver value for Woolworths Group and Endeavour Group shareholders. I’d like to take this opportunity to acknowledge and thank the many team members of Endeavour Group who have contributed to our success and I look forward to the next stage of our journey together as partners for many years to come. New era for  Woolworths  GroupCEO’S REPORT16 
 
 
 
 
 
 
 
17

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We have also made good progress 
during the year building out the 
Group’s ecosystem through a series 
of strategic partnerships, investments 
and new businesses. In June, we 
completed our strategic investment 
in PFD Food Services to expand our 
food offering into new markets. We 
know how important leveraging data 
and analytics is in the retail industry 
of the future, so we’ve increased our 
ownership of Quantium and created 
a partnership called Q‑Retail to 
accelerate our advanced analytics 
capabilities. We’ve also established 
a number of new businesses, including 
Greenstock, Wpay and HealthyLife to 
provide greater value to our customers 
and meet their changing needs. 

We are also continuing to invest in our 
supply chain transformation which 
will deliver the capacity and capability 
needed to support future growth. In F21 
we opened Melbourne Fresh DC, as well 
as commenced work on the Moorebank 
NDC. This multi‑year transformation 
will enable expanded range and better 
availability for our customers, as well 
as ensuring faster, fresher and more 
efficient deliveries to our stores and 
through our supply chain.

Business performance

The Group’s trading performance in F21 
was strong with sales growth of 5.7% 
and Group EBIT1 increasing by 13.7%. 

In Australian Food, H1 saw strong sales 
growth as a result of our successful 
Disney+ Ooshies and glass container 
campaigns and elevated demand due 
to lockdowns, whereas H2 sales were 
impacted by cycling COVID in the 
final four months of the year. Full year 
Australian Food sales increased by 
5.4%, with EBIT 1 increasing by 9.0%. 

Our WooliesX digital and eCommerce 
business had another year of 
exceptional growth, with eCommerce 
sales increasing by 74.7% compared 
to the prior year. To meet customer 
demand, we continued to scale up 
our convenience propositions with 
an expanded range of Home Delivery 
and Pick up options. 

In New Zealand Food, sales growth in 
H1 was impacted by low market growth, 
particularly during the summer tourist 

1  Before significant items.

season. In H2, sales declined 5.5% as the 
business cycled New Zealand’s restrictive 
lockdown period. EBIT for the year 
declined by 4.6% reflecting lower sales. 

BIG W’s momentum continued with 
another strong year of improved 
customer scores, strong sales growth 
of 11.6% and EBIT increasing over 
300% in the year to $172 million. H2 
sales growth moderated as expected 
but remained positive with an increased 
focus on digital and eCommerce and 
providing customers with safe and 
convenient shopping options. 

Working towards 
a better tomorrow

Right from the start of COVID, we have 
prioritised being COVIDSafe and this 
has continued in F21. We’ve partnered 
with the Federal Government and other 
food retailers, to establish pop‑up 
vaccination clinics at our food‑related 
distribution centres, as well as 
increasing access to vaccines for our 
store teams, who are critical to ensure 
a stable supply of food and everyday 
needs for our customers. No team 
member should have to choose 
between their health and their pay, 
particularly as we know vaccination will 
make shopping safer for our teams and 
customers, and we have revised our 
vaccination leave policy to reflect this. 

Operating sustainably is not only 
important to our customers, but 
it’s increasingly intrinsic to our 
business and the way we operate. 
Setting ambitious and measurable 
sustainability goals as part of our 
Sustainability Plan 2025 launched in 
November last year will help us to play 
our part in making the world a better 
place for a better tomorrow. 

Our people are the core of our business 
and we’re continuing to focus on our 
holistic diversity and inclusion agenda, 
with more work to be done in F22. I’m 
proud that our strong diversity has been 
recognised and celebrated through 
a number of external awards, including 
the WGEA Employer of Choice for 
gender equality citation and AWEI 
gold tier status for LGBTQ+ inclusion 
for the fourth consecutive year.

We acknowledge the environmental 
impact of our business and we continue 
to focus on reducing our footprint with 
the installation of solar panels in over 
190 Woolworths Group sites. We also 
signed our first power purchase 
agreement in NSW in F21 as we 
transition to 100% renewable energy by 
2025. We’re also making good progress 
on both eliminating food waste and 
reducing plastic across our products. 

We remain committed to resolving 
the salaried team underpayments 
announced in 2019. To date, more 
than $350 million has been paid 
to current and former salaried 
team members. During the year, 
we launched a program to enhance 
our pay process integrity and to help 
ensure it doesn’t happen again. 

F22 Outlook

COVID, particularly the 
Delta variant, will continue 
to challenge our business 
and community in F22. 
While it’s difficult to predict 
the environment we’ll be 
operating in over the next 
12 months with any certainty, 
we know that operating 
COVIDSafe is our priority. 
I am confident that we have 
the right foundations in 
place to continue to deliver 
value for our customers, 
teams, communities 
and shareholders. 

Brad Banducci 
CHIEF EXECUTIVE OFFICER

As we continue to be challenged by COVID, in particular the Delta variant, I’m extremely proud of all of our team for their resilience as they continue to demonstrate real care for each other and our customers. We remain committed to operating COVIDSafe and ensuring we are doing the right thing for our team, customers and communities and by leading the way to make shopping safer. Building a strong foundation  for the new eraWe know that the retail industry continues to change rapidly, and we are committed to changing with it. In F20 we outlined plans to transform Woolworths Group into a more focused food and everyday needs ecosystem by building partnerships and delivering adjacent services for our customers, and we have made good progress in F21. At the end of the year we farewelled our Endeavour Group colleagues as the multi‑year journey to separate Endeavour Group was completed through a demerger.  While this was a bittersweet moment, we’re confident that the demerger will deliver value for Woolworths Group and Endeavour Group shareholders. I’d like to take this opportunity to acknowledge and thank the many team members of Endeavour Group who have contributed to our success and I look forward to the next stage of our journey together as partners for many years to come. New era for  Woolworths  GroupCEO’S REPORT16 
 
 
 
 
 
 
 
Group Financial PerformanceF21 was a significant year in the history of Woolworths Group following the successful separation of Endeavour Group at the end of June. We also made progress in laying the foundations for the new Woolworths Group, a more focused food and everyday needs ecosystem with a customer 1st team 1st culture at its core, and enabled by data and technology. The Group’s F21 trading performance was strong with sales growth of 5.7%, and EBIT growth of 13.7% despite H2 EBIT growth in some businesses being impacted by cycling COVID from late February in the prior year.Group sales$67,278M 5.7% from F20Sales from continuing operations increased 4.9% with strong full year sales growth for Australian Food and BIG W, particularly in H1, somewhat offset by lower sales from New Zealand Food. Total Group sales increased by 5.7%, aided by growth of 9.3% from Endeavour Group.Group eCommerce sales$5,602M 58.1% from F20Group eCommerce sales increased by 58.1%. Continuing operations eCommerce sales increased 63.3% with penetration on the same basis increasing 3 pts to 8.5% of sales. Average weekly traffic to Group digital assets from continuing operations also increased materially with 17.2 million visits per week during F21.Gross profit as a % of sales 129.3% 44 bps from F20Gross profit increases across the Group reflected stock loss improvements, favourable product mix changes, fewer markdowns and less clearance activity.Significant items before tax $59MSignificant items reflect costs associated with the supply chain network review, Metro Food Stores asset impairment, gain on previously held equity interest in Quantium and transaction costs.Finance costs 2 $613M  8.5% from F20Finance costs declined on the prior year due to lower non‑lease interest expense as a result of lower average net debt and lower borrowing costs.NPAT from continuing operations attributable to equity holders of the parent entity 1$1,504M 20.1% from F20 NPAT from continuing operations increased on the prior year reflecting the increase in EBIT and a reduction in finance costs.1 Continuing operations before significant items.2 Group before significant items.Group EBIT 2$3,663M 13.7% from F20Group EBIT increased by 13.7% to $3,663 million driven by a 9% increase from Australia Food, an increase of over 300% from BIG W and a 22.6% increase from Endeavour Group. EBIT from continuing operations before significant items increased 11.1%.Cost of doing business as a % of sales 124.4% 16 bps from F20Cost of doing business (CODB) % increased by 16 bps driven by higher CODB (%) in New Zealand and a higher contribution from BIG W to the Group total which has a higher‑than‑average CODB (%).18F21 sales summary  ($ MILLION)F21(52 WEEKS)F20(52 WEEKS)CHANGEContinuing operationsAustralian Food44,44142,1515.4%New Zealand Food6,6526,823(2.5)%New Zealand Food (NZD)7,1467,192(0.6)%BIG W4,5834,10611.6%Other18–n.m.Sales from continuing operations55,69453,0804.9%Discontinued operationsEndeavour Drinks10,1679,2759.6%Hotels1,4171,3207.3%Sales from discontinued operations11,58410,5959.3%Total Group sales (including eCommerce)67,27863,6755.7%Continuing operations eCommerce sales4,7432,90563.3%Discontinued operations eCommerce sales85963734.7%Group eCommerce sales5,6023,54258.1%Continuing operations eCommerce sales penetration (%)8.5%5.5%304 bpsContinuing operations – average weekly traffic to Group digital assets (million)17.212.240.5%F21 EBIT summary ($ MILLION)F21(52 WEEKS)F20(52 WEEKS)CHANGEContinuing operations before significant itemsAustralian Food2,4322,2329.0%New Zealand Food336358(6.4)%New Zealand Food (NZD)361378(4.6)%BIG W17239344.9%Group(176)(144)23.6%EBIT from continuing operations before significant items2,7642,48511.1%Discontinued operationsEndeavour Drinks66956917.7%Hotels26117251.7%Endeavour Group costs(31)(7)n.m.EBIT from discontinued operations before significant items89973422.6%Group EBIT before significant items3,6633,21913.7%Significant items59(591)n.m.Group EBIT 3,7222,62841.6%12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 202119Group Financial PerformanceF21 was a significant year in the history of Woolworths Group following the successful separation of Endeavour Group at the end of June. We also made progress in laying the foundations for the new Woolworths Group, a more focused food and everyday needs ecosystem with a customer 1st team 1st culture at its core, and enabled by data and technology. The Group’s F21 trading performance was strong with sales growth of 5.7%, and EBIT growth of 13.7% despite H2 EBIT growth in some businesses being impacted by cycling COVID from late February in the prior year.Group sales$67,278M 5.7% from F20Sales from continuing operations increased 4.9% with strong full year sales growth for Australian Food and BIG W, particularly in H1, somewhat offset by lower sales from New Zealand Food. Total Group sales increased by 5.7%, aided by growth of 9.3% from Endeavour Group.Group eCommerce sales$5,602M 58.1% from F20Group eCommerce sales increased by 58.1%. Continuing operations eCommerce sales increased 63.3% with penetration on the same basis increasing 3 pts to 8.5% of sales. Average weekly traffic to Group digital assets from continuing operations also increased materially with 17.2 million visits per week during F21.Gross profit as a % of sales 129.3% 44 bps from F20Gross profit increases across the Group reflected stock loss improvements, favourable product mix changes, fewer markdowns and less clearance activity.Significant items before tax $59MSignificant items reflect costs associated with the supply chain network review, Metro Food Stores asset impairment, gain on previously held equity interest in Quantium and transaction costs.Finance costs 2 $613M  8.5% from F20Finance costs declined on the prior year due to lower non‑lease interest expense as a result of lower average net debt and lower borrowing costs.NPAT from continuing operations attributable to equity holders of the parent entity 1$1,504M 20.1% from F20 NPAT from continuing operations increased on the prior year reflecting the increase in EBIT and a reduction in finance costs.1 Continuing operations before significant items.2 Group before significant items.Group EBIT 2$3,663M 13.7% from F20Group EBIT increased by 13.7% to $3,663 million driven by a 9% increase from Australia Food, an increase of over 300% from BIG W and a 22.6% increase from Endeavour Group. EBIT from continuing operations before significant items increased 11.1%.Cost of doing business as a % of sales 124.4% 16 bps from F20Cost of doing business (CODB) % increased by 16 bps driven by higher CODB (%) in New Zealand and a higher contribution from BIG W to the Group total which has a higher‑than‑average CODB (%).18F21 sales summary  ($ MILLION)F21(52 WEEKS)F20(52 WEEKS)CHANGEContinuing operationsAustralian Food44,44142,1515.4%New Zealand Food6,6526,823(2.5)%New Zealand Food (NZD)7,1467,192(0.6)%BIG W4,5834,10611.6%Other18–n.m.Sales from continuing operations55,69453,0804.9%Discontinued operationsEndeavour Drinks10,1679,2759.6%Hotels1,4171,3207.3%Sales from discontinued operations11,58410,5959.3%Total Group sales (including eCommerce)67,27863,6755.7%Continuing operations eCommerce sales4,7432,90563.3%Discontinued operations eCommerce sales85963734.7%Group eCommerce sales5,6023,54258.1%Continuing operations eCommerce sales penetration (%)8.5%5.5%304 bpsContinuing operations – average weekly traffic to Group digital assets (million)17.212.240.5%F21 EBIT summary ($ MILLION)F21(52 WEEKS)F20(52 WEEKS)CHANGEContinuing operations before significant itemsAustralian Food2,4322,2329.0%New Zealand Food336358(6.4)%New Zealand Food (NZD)361378(4.6)%BIG W17239344.9%Group(176)(144)23.6%EBIT from continuing operations before significant items2,7642,48511.1%Discontinued operationsEndeavour Drinks66956917.7%Hotels26117251.7%Endeavour Group costs(31)(7)n.m.EBIT from discontinued operations before significant items89973422.6%Group EBIT before significant items3,6633,21913.7%Significant items59(591)n.m.Group EBIT 3,7222,62841.6%12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 202119Margins – continuing operations F21(52 WEEKS)F20(52 WEEKS)CHANGEGross profit (%)29.328.944 bpsCost of doing business (CODB) (%)24.424.216 bpsEBIT (%)5.04.728 bpsEarnings per share and dividends F21(52 WEEKS)F20(52 WEEKS)CHANGEWeighted average ordinary shares on issue (million)1,256.91,257.9(0.1)%Total Group basic EPS (cents) before significant items156.9127.523.0%Total Group basic EPS (cents) after significant items165.092.777.9%Total Group diluted EPS (cents) after significant items164.292.278.2%Basic EPS (cents) – from continuing operations before significant items119.699.520.2%Basic EPS (cents) – from continuing operations after significant items127.773.972.8%Diluted EPS (cents) – from continuing operations before significant items119.198.920.4%Diluted EPS (cents) – from continuing operations after significant items127.173.573.0%Interim dividend per share (cents)534615.2%Final dividend per share 1,2 (cents)554814.6%Total dividend per share 21089414.9%1 The 2021 final dividend payable on or around 8 October 2021 will be fully franked.2 Dividend excludes H2 dividend declared by Endeavour Group. Including Endeavour Group H2 dividend, total dividend per share is broadly consistent with Group NPAT before significant items growth.GroupNet Group costs were $176 million, an increase of $32 million from $144 million in F20. Group costs in F20 have been restated to exclude $7 million related to Endeavour Group. F21 Group costs included COVID-related costs of $28 million, the cost of additional risk and payroll remediation resources, and higher insurance costs. For F22, Group costs will include Woolworths Group’s equity accounted contribution from its 14.6% investment in Endeavour Group. Excluding this contribution, Group costs in F22 are expected to be approximately $175 million. Group Profit or Loss for the 52 weeks ended 27 June 2021 ($ MILLION)F21(52 WEEKS)F20(52 WEEKS)CHANGEContinuing operations before significant itemsEBITDA4,8434,4538.7%Depreciation and amortisation (2,079)(1,968)5.5%EBIT2,7642,48511.1%Finance costs(613)(671)(8.5)%Income tax expense(647)(555)16.5%NPAT1,5041,25919.2%Non-controlling interests–(10)n.m.NPAT from continuing operations attributable to equity holders of the parent entity before significant items1,5041,24920.1%Significant items from continuing operations after tax 102(321)n.m.NPAT from discontinued operations attributable to equity holders of the parent entity after significant items46823798.0%NPAT attributable to equity holders of the parent entity after significant items2,0741,16577.8%GROUP FINANCIAL PERFORMANCE20Group balance sheet as at 27 June 2021($ MILLION)REPORTED27 JUNE 2021NORMALISED27 JUNE 2021 1REPORTED28 JUNE 2020NORMALISED CHANGEInventories3,1324,3454,434(89)Trade payables(4,832)(5,721)(5,843)122Net investment in inventory(1,700)(1,376)(1,409)33Trade and other receivables78294189447Other creditors, provisions, and other liabilities (4,008)(4,632)(4,516)(116)Demerger distribution liability(7,870)(7,870)–(7,870)Fixed assets, investments, loans to related parties and convertible notes7,6059,5818,953628Net assets held for sale and distribution5,728198333(135)Intangible assets4,6718,5167,717799Lease assets9,55312,67012,062608Other assets128128136(8)Total funds employed14,88918,15624,170(6,014)Net tax balances1,119851992(141)Net assets employed16,00819,00725,162(6,155)Cash and borrowings(1,863)(1,430)(1,863)433Derivatives––464(464)Net debt (excluding lease liabilities)(1,863)(1,430)(1,399)(31)Lease liabilities(12,016)(15,445)(14,728)(717)Total net debt (13,879)(16,875)(16,127)(748)Put option over non-controlling interest(390)(393)(3)(390)Net assets1,7391,7399,032(7,293)Non-controlling interests36036029070Shareholders' equity1,3791,3798,742(7,363)Total equity1,7391,7399,032(7,293)Key ratios – Group before significant itemsClosing inventory days (based on cost of sales)33.535.8(2.3)Closing trade payable days (based on cost of sales)(44.2)(47.2)3.0Normalised ROFE 215.113.7143 bps1 Normalised to include the Endeavour Group balances transferred to assets or liabilities held for distribution.2 F21 closing funds employed included in the ROFE calculation excludes the $7,870 million demerger distribution liability.  The normalised balance sheet as at 27 June 2021 does not include the impact of transferring the Endeavour Group balances to assets or liabilities held for distribution. To aid comparability, all balance sheet commentary provided compares the F21 normalised closing balance sheet to F20. Closing inventory of $4,345 million decreased by $89 million compared to F20, mainly due to normalised inventory levels in the Food businesses following an inventory build in F20. This was partially offset by a rebuild of inventory in BIG W. Closing inventory days were 2.3 days lower and average inventory days from continuing operations declined by 0.5 days on the prior year reflecting strong sales momentum in F21.Trade payables of $5,721 million decreased by $122 million compared to F20, primarily due to decreased volume replenishments of COVID contingency stock compared to the prior year, particularly in Q4 together with shorter payment terms for smaller suppliers. A demerger distribution liability of $7,870 million reflects the fair value of the demerger distribution payable to shareholders following the approval of the demerger resolutions for Endeavour Group in June 2021. Fixed assets, investments, loans provided to related parties and convertible notes of $9,581 million increased by $628 million mainly due to additions reflecting investment in new stores, property development, refurbishments of existing stores, investment in eCommerce and digital, IT infrastructure and acquisitions of businesses. Lease assets of $12,670 million increased by $608 million primarily driven by lease remeasurements of $1,253 million and lease additions of $537 million, partially offset by lease depreciation of $1,228 million. Total funds employed decreased $6,014 million, largely driven by the $7,870 million demerger distribution payable to shareholders as a result of the Endeavour Group demerger, partially offset by a $799 million increase in intangible assets due to the acquisition of Quantium and software additions. Lease liabilities of $15,445 million increased by $717 million, primarily driven by commencement of new leases of $556 million, remeasurements during the period of $1,242 million and interest of $687 million, partially offset by $1,845 million of payments made in the period.Net assets of $1,739 million includes a $390 million put option liability over the non-controlling interest in Quantium. The liability reflects the amount expected to be paid at the exercise of the put option.Group ROFE was 15.1%, 143 bps higher than F20. ROFE increased for all businesses reflecting EBIT growth well above increases in funds employed other than New Zealand Food. Closing funds employed used for the Group ROFE calculation has been adjusted to remove the impact of the demerger distribution liability which has resulted in a temporary reduction in funds employed at year end.  Shareholders' equity of $1,379 million decreased by $7,363 million mainly due to the recognition of the demerger distribution liability of $7,870 million recognised in reserves and share capital. As discussed below, this timing impact will reverse in F22 and shareholders’ equity will increase when the gain on the demerger of Endeavour Group of approximately $6.4 billion is recognised in Q1 F22.  12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 202121Margins – continuing operations F21(52 WEEKS)F20(52 WEEKS)CHANGEGross profit (%)29.328.944 bpsCost of doing business (CODB) (%)24.424.216 bpsEBIT (%)5.04.728 bpsEarnings per share and dividends F21(52 WEEKS)F20(52 WEEKS)CHANGEWeighted average ordinary shares on issue (million)1,256.91,257.9(0.1)%Total Group basic EPS (cents) before significant items156.9127.523.0%Total Group basic EPS (cents) after significant items165.092.777.9%Total Group diluted EPS (cents) after significant items164.292.278.2%Basic EPS (cents) – from continuing operations before significant items119.699.520.2%Basic EPS (cents) – from continuing operations after significant items127.773.972.8%Diluted EPS (cents) – from continuing operations before significant items119.198.920.4%Diluted EPS (cents) – from continuing operations after significant items127.173.573.0%Interim dividend per share (cents)534615.2%Final dividend per share 1,2 (cents)554814.6%Total dividend per share 21089414.9%1 The 2021 final dividend payable on or around 8 October 2021 will be fully franked.2 Dividend excludes H2 dividend declared by Endeavour Group. Including Endeavour Group H2 dividend, total dividend per share is broadly consistent with Group NPAT before significant items growth.GroupNet Group costs were $176 million, an increase of $32 million from $144 million in F20. Group costs in F20 have been restated to exclude $7 million related to Endeavour Group. F21 Group costs included COVID-related costs of $28 million, the cost of additional risk and payroll remediation resources, and higher insurance costs. For F22, Group costs will include Woolworths Group’s equity accounted contribution from its 14.6% investment in Endeavour Group. Excluding this contribution, Group costs in F22 are expected to be approximately $175 million. Group Profit or Loss for the 52 weeks ended 27 June 2021 ($ MILLION)F21(52 WEEKS)F20(52 WEEKS)CHANGEContinuing operations before significant itemsEBITDA4,8434,4538.7%Depreciation and amortisation (2,079)(1,968)5.5%EBIT2,7642,48511.1%Finance costs(613)(671)(8.5)%Income tax expense(647)(555)16.5%NPAT1,5041,25919.2%Non-controlling interests–(10)n.m.NPAT from continuing operations attributable to equity holders of the parent entity before significant items1,5041,24920.1%Significant items from continuing operations after tax 102(321)n.m.NPAT from discontinued operations attributable to equity holders of the parent entity after significant items46823798.0%NPAT attributable to equity holders of the parent entity after significant items2,0741,16577.8%GROUP FINANCIAL PERFORMANCE20Group balance sheet as at 27 June 2021($ MILLION)REPORTED27 JUNE 2021NORMALISED27 JUNE 2021 1REPORTED28 JUNE 2020NORMALISED CHANGEInventories3,1324,3454,434(89)Trade payables(4,832)(5,721)(5,843)122Net investment in inventory(1,700)(1,376)(1,409)33Trade and other receivables78294189447Other creditors, provisions, and other liabilities (4,008)(4,632)(4,516)(116)Demerger distribution liability(7,870)(7,870)–(7,870)Fixed assets, investments, loans to related parties and convertible notes7,6059,5818,953628Net assets held for sale and distribution5,728198333(135)Intangible assets4,6718,5167,717799Lease assets9,55312,67012,062608Other assets128128136(8)Total funds employed14,88918,15624,170(6,014)Net tax balances1,119851992(141)Net assets employed16,00819,00725,162(6,155)Cash and borrowings(1,863)(1,430)(1,863)433Derivatives––464(464)Net debt (excluding lease liabilities)(1,863)(1,430)(1,399)(31)Lease liabilities(12,016)(15,445)(14,728)(717)Total net debt (13,879)(16,875)(16,127)(748)Put option over non-controlling interest(390)(393)(3)(390)Net assets1,7391,7399,032(7,293)Non-controlling interests36036029070Shareholders' equity1,3791,3798,742(7,363)Total equity1,7391,7399,032(7,293)Key ratios – Group before significant itemsClosing inventory days (based on cost of sales)33.535.8(2.3)Closing trade payable days (based on cost of sales)(44.2)(47.2)3.0Normalised ROFE 215.113.7143 bps1 Normalised to include the Endeavour Group balances transferred to assets or liabilities held for distribution.2 F21 closing funds employed included in the ROFE calculation excludes the $7,870 million demerger distribution liability.  The normalised balance sheet as at 27 June 2021 does not include the impact of transferring the Endeavour Group balances to assets or liabilities held for distribution. To aid comparability, all balance sheet commentary provided compares the F21 normalised closing balance sheet to F20. Closing inventory of $4,345 million decreased by $89 million compared to F20, mainly due to normalised inventory levels in the Food businesses following an inventory build in F20. This was partially offset by a rebuild of inventory in BIG W. Closing inventory days were 2.3 days lower and average inventory days from continuing operations declined by 0.5 days on the prior year reflecting strong sales momentum in F21.Trade payables of $5,721 million decreased by $122 million compared to F20, primarily due to decreased volume replenishments of COVID contingency stock compared to the prior year, particularly in Q4 together with shorter payment terms for smaller suppliers. A demerger distribution liability of $7,870 million reflects the fair value of the demerger distribution payable to shareholders following the approval of the demerger resolutions for Endeavour Group in June 2021. Fixed assets, investments, loans provided to related parties and convertible notes of $9,581 million increased by $628 million mainly due to additions reflecting investment in new stores, property development, refurbishments of existing stores, investment in eCommerce and digital, IT infrastructure and acquisitions of businesses. Lease assets of $12,670 million increased by $608 million primarily driven by lease remeasurements of $1,253 million and lease additions of $537 million, partially offset by lease depreciation of $1,228 million. Total funds employed decreased $6,014 million, largely driven by the $7,870 million demerger distribution payable to shareholders as a result of the Endeavour Group demerger, partially offset by a $799 million increase in intangible assets due to the acquisition of Quantium and software additions. Lease liabilities of $15,445 million increased by $717 million, primarily driven by commencement of new leases of $556 million, remeasurements during the period of $1,242 million and interest of $687 million, partially offset by $1,845 million of payments made in the period.Net assets of $1,739 million includes a $390 million put option liability over the non-controlling interest in Quantium. The liability reflects the amount expected to be paid at the exercise of the put option.Group ROFE was 15.1%, 143 bps higher than F20. ROFE increased for all businesses reflecting EBIT growth well above increases in funds employed other than New Zealand Food. Closing funds employed used for the Group ROFE calculation has been adjusted to remove the impact of the demerger distribution liability which has resulted in a temporary reduction in funds employed at year end.  Shareholders' equity of $1,379 million decreased by $7,363 million mainly due to the recognition of the demerger distribution liability of $7,870 million recognised in reserves and share capital. As discussed below, this timing impact will reverse in F22 and shareholders’ equity will increase when the gain on the demerger of Endeavour Group of approximately $6.4 billion is recognised in Q1 F22.  12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 202121Group cash flows for the 52 weeks ended 27 June 2021($ MILLION)F21(52 WEEKS)F20(52 WEEKS)CHANGEEBITDA – continuing operations4,8434,4538.7%EBITDA – discontinued operations1,4281,22416.7%Significant items59(591)n.m.Group EBITDA6,3305,08624.4%Decrease/(increase) in inventories103(152)n.m.(Decrease)/increase in trade payables(115)632n.m.(Decrease)/increase in provisions(183)223n.m.Net change in other working capital and non-cash27278(88.9)%Cash from operating activities before interest and tax6,1626,0671.7%Interest paid – leases(687)(701)(1.7)%Net interest paid – non-leases(113)(155)(26.9)%Tax paid(738)(650)13.5%Total cash provided by operating activities4,6244,5611.4%Proceeds from the sale of property, plant and equipment, subsidiaries and investments, net of cash disposed40829538.8%Payments for the purchase of property, plant and equipment and intangible assets(2,389)(2,149)11.3%Other (219)(91)139.7%Total cash used in investing activities(2,200)(1,945)13.1%Repayment of lease liabilities(1,158)(1,066)8.7%Dividends paid (including to non-controlling interests)(1,154)(1,199)(3.8)%Payments for shares held in trust(177)(102)74.0%Free cash flow after equity and lease related financing activities(65)249n.m.Cash flow from operating activities before interest and tax was $6,162 million, an increase of $95 million or 1.7% on the prior year. The increase in Group EBITDA of $1,244 million was largely offset by outflows from working capital and non-cash movements compared to inflows in the prior year. The increase in EBITDA reflects higher trading EBITDA from continuing and discontinued operations as well as a gain on significant items in F21 compared to a loss on significant items in F20. Increase in trade payables was unusually high in F20 due to creditor payment timing and high trade payables due to increased COVID-related stock replenishments. In F21, movement in payables was lower due to lower Q4 inventory replenishments, and inventory optimisation initiatives.  In F21, decrease in provisions of $183 million was due to ongoing progress and cash payments for salaried team member remediation resulting in a lower provision balance compared to the prior year. Net interest paid (non-leases) decreased by 26.9% reflecting lower net debt during the year and lower borrowing costs.Tax paid increased 13.5% due to higher tax instalments on higher profits in F21 and stamp duty payable on the Endeavour Group demerger.Cash used in investing activities was $2,200 million, an increase of $255 million or 13.1% above the prior year. The increase was primarily due to the Group acquiring a controlling interest in Quantium for $169 million (net of cash acquired), and increased investment in eCommerce, IT and digital projects, partially offset by higher proceeds on property sales. Repayment of lease liabilities increased by 8.7% reflecting lease additions and lease remeasurements.The Group cash realisation ratio was 97.4% (F20: 124.4%), primarily due to the cash payment of salaried team member remediation.GROUP FINANCIAL PERFORMANCE22Non‑IFRS Financial Information The 2021 Annual Report for the 52 weeks ended 27 June 2021 contains certain non-IFRS financial measures of historical financial performance, balance sheet or cash flows. Non-IFRS financial measures are financial measures other than those defined or specified under all relevant accounting standards and may not be directly comparable with other companies’ measures but are common practice in the industry in which Woolworths Group operates. Non-IFRS financial information should be considered in addition to, and is not intended to be a substitute for, or more important than, IFRS measures. The presentation of non-IFRS measures is in line with Regulatory Guide 230 issued by the Australian Security and Investments Commission in December 2011 to promote full and clear disclosure for investors and other users of financial information and minimise the possibility of being misled by such information. These measures are used by management and the directors as the primary measures of assessing the financial performance of the Group and individual segments. The directors also believe that these non-IFRS measures assist in providing additional meaningful information on the underlying drivers of the business, performance and trends, as well as the financial position of the Woolworths Group. Non-IFRS financial measures are also used to enhance the comparability of information between reporting periods (such as comparable sales), by adjusting for non-recurring or uncontrollable factors which affect IFRS measures, to aid the user in understanding the Woolworths Group’s performance. Consequently, non-IFRS measures are used by the directors and management for performance analysis, planning, reporting and incentive setting purposes and have remained consistent with the prior year. Non-IFRS measures are not subject to audit or review. Capital managementCapital management objectivesThe Group manages its capital structure with the objective of enhancing long-term shareholder value through funding its business at an optimised weighted average cost of capital. The Group returns capital to shareholders when consistent with its long-term capital structure objectives and will enhance shareholder value.The Group remains committed to solid investment grade credit ratings and several actions can be undertaken, if required, to support the credit profile. This includes the sale of non-core assets, further working capital initiatives, and adjusting growth capital expenditure and the property leasing profile. The Group’s credit ratings 1 are BBB (stable outlook) from S&P and Baa2 (stable outlook) from Moody’s.Financing events during 2021In September 2020, the $654 million US Senior Notes matured. In November 2020, the $229 million European Medium Term Notes also matured. The Group refinanced these maturities with a $1 billion domestic Medium Term Note issuance in May 2020.In December 2020, the Group entered into a $384 million bank guarantee facility and into $398 million direct surety bond facilities to support the Group’s workers' compensation obligations as a self-insurer. These transactions refinanced the Group’s $500 million bank guarantee facility, which matured in January 2021.In April 2021, the $424 million US Senior Notes were repaid with existing surplus cash and bank facilities. Upcoming maturities and transactionsSubject to market conditions, the Group is intending to launch a debt capital markets transaction (total value approximately $1.5 billion) where the proceeds will be used for general corporate purposes, including the long-term funding of the Group’s increased investment in Quantium, the acquisition of PFD, and represents an opportunity to secure long-term, low-cost debt and reduce the Group’s overall cost of debt and weighted average cost of capital.Off‑market buy‑backOn 26 August 2021, the Group announced a capital return of $2 billion to shareholders by way of an off-market buy-back. The buy-back is expected to return approximately $840 million of franking credits to shareholders. For more information, please visit  www.woolworthsgroup.com.au/buyback1 These credit ratings have been issued by a credit rating agency which holds an Australian Financial Services Licence with an authorisation to issue credit ratings to wholesale clients only and are for the benefit of the Group’s debt providers.12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 202123Group cash flows for the 52 weeks ended 27 June 2021($ MILLION)F21(52 WEEKS)F20(52 WEEKS)CHANGEEBITDA – continuing operations4,8434,4538.7%EBITDA – discontinued operations1,4281,22416.7%Significant items59(591)n.m.Group EBITDA6,3305,08624.4%Decrease/(increase) in inventories103(152)n.m.(Decrease)/increase in trade payables(115)632n.m.(Decrease)/increase in provisions(183)223n.m.Net change in other working capital and non-cash27278(88.9)%Cash from operating activities before interest and tax6,1626,0671.7%Interest paid – leases(687)(701)(1.7)%Net interest paid – non-leases(113)(155)(26.9)%Tax paid(738)(650)13.5%Total cash provided by operating activities4,6244,5611.4%Proceeds from the sale of property, plant and equipment, subsidiaries and investments, net of cash disposed40829538.8%Payments for the purchase of property, plant and equipment and intangible assets(2,389)(2,149)11.3%Other (219)(91)139.7%Total cash used in investing activities(2,200)(1,945)13.1%Repayment of lease liabilities(1,158)(1,066)8.7%Dividends paid (including to non-controlling interests)(1,154)(1,199)(3.8)%Payments for shares held in trust(177)(102)74.0%Free cash flow after equity and lease related financing activities(65)249n.m.Cash flow from operating activities before interest and tax was $6,162 million, an increase of $95 million or 1.7% on the prior year. The increase in Group EBITDA of $1,244 million was largely offset by outflows from working capital and non-cash movements compared to inflows in the prior year. The increase in EBITDA reflects higher trading EBITDA from continuing and discontinued operations as well as a gain on significant items in F21 compared to a loss on significant items in F20. Increase in trade payables was unusually high in F20 due to creditor payment timing and high trade payables due to increased COVID-related stock replenishments. In F21, movement in payables was lower due to lower Q4 inventory replenishments, and inventory optimisation initiatives.  In F21, decrease in provisions of $183 million was due to ongoing progress and cash payments for salaried team member remediation resulting in a lower provision balance compared to the prior year. Net interest paid (non-leases) decreased by 26.9% reflecting lower net debt during the year and lower borrowing costs.Tax paid increased 13.5% due to higher tax instalments on higher profits in F21 and stamp duty payable on the Endeavour Group demerger.Cash used in investing activities was $2,200 million, an increase of $255 million or 13.1% above the prior year. The increase was primarily due to the Group acquiring a controlling interest in Quantium for $169 million (net of cash acquired), and increased investment in eCommerce, IT and digital projects, partially offset by higher proceeds on property sales. Repayment of lease liabilities increased by 8.7% reflecting lease additions and lease remeasurements.The Group cash realisation ratio was 97.4% (F20: 124.4%), primarily due to the cash payment of salaried team member remediation.GROUP FINANCIAL PERFORMANCE22Non‑IFRS Financial Information The 2021 Annual Report for the 52 weeks ended 27 June 2021 contains certain non-IFRS financial measures of historical financial performance, balance sheet or cash flows. Non-IFRS financial measures are financial measures other than those defined or specified under all relevant accounting standards and may not be directly comparable with other companies’ measures but are common practice in the industry in which Woolworths Group operates. Non-IFRS financial information should be considered in addition to, and is not intended to be a substitute for, or more important than, IFRS measures. The presentation of non-IFRS measures is in line with Regulatory Guide 230 issued by the Australian Security and Investments Commission in December 2011 to promote full and clear disclosure for investors and other users of financial information and minimise the possibility of being misled by such information. These measures are used by management and the directors as the primary measures of assessing the financial performance of the Group and individual segments. The directors also believe that these non-IFRS measures assist in providing additional meaningful information on the underlying drivers of the business, performance and trends, as well as the financial position of the Woolworths Group. Non-IFRS financial measures are also used to enhance the comparability of information between reporting periods (such as comparable sales), by adjusting for non-recurring or uncontrollable factors which affect IFRS measures, to aid the user in understanding the Woolworths Group’s performance. Consequently, non-IFRS measures are used by the directors and management for performance analysis, planning, reporting and incentive setting purposes and have remained consistent with the prior year. Non-IFRS measures are not subject to audit or review. Capital managementCapital management objectivesThe Group manages its capital structure with the objective of enhancing long-term shareholder value through funding its business at an optimised weighted average cost of capital. The Group returns capital to shareholders when consistent with its long-term capital structure objectives and will enhance shareholder value.The Group remains committed to solid investment grade credit ratings and several actions can be undertaken, if required, to support the credit profile. This includes the sale of non-core assets, further working capital initiatives, and adjusting growth capital expenditure and the property leasing profile. The Group’s credit ratings 1 are BBB (stable outlook) from S&P and Baa2 (stable outlook) from Moody’s.Financing events during 2021In September 2020, the $654 million US Senior Notes matured. In November 2020, the $229 million European Medium Term Notes also matured. The Group refinanced these maturities with a $1 billion domestic Medium Term Note issuance in May 2020.In December 2020, the Group entered into a $384 million bank guarantee facility and into $398 million direct surety bond facilities to support the Group’s workers' compensation obligations as a self-insurer. These transactions refinanced the Group’s $500 million bank guarantee facility, which matured in January 2021.In April 2021, the $424 million US Senior Notes were repaid with existing surplus cash and bank facilities. Upcoming maturities and transactionsSubject to market conditions, the Group is intending to launch a debt capital markets transaction (total value approximately $1.5 billion) where the proceeds will be used for general corporate purposes, including the long-term funding of the Group’s increased investment in Quantium, the acquisition of PFD, and represents an opportunity to secure long-term, low-cost debt and reduce the Group’s overall cost of debt and weighted average cost of capital.Off‑market buy‑backOn 26 August 2021, the Group announced a capital return of $2 billion to shareholders by way of an off-market buy-back. The buy-back is expected to return approximately $840 million of franking credits to shareholders. For more information, please visit  www.woolworthsgroup.com.au/buyback1 These credit ratings 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 and are for the benefit of the Group’s debt providers.12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATIONWOOLWORTHS GROUP ANNUAL REPORT 202123Australian FoodWoolworths Supermarkets and Metro Food Stores continued its focus on operating COVIDSafe in F21 as well as a focus on sustainability, health and product. Trading PerformanceAustralian Food VOC NPS (Store and Online) finished F21 at 53, an increase of three points on the prior quarter and in line with the prior year. Store-controllable VOC of 81% increased one point compared to the prior quarter and decreased one point compared to the prior year. Positive Q4 momentum in customer metrics for both stores and online reflects positive sentiment across Ease of Pick up, Queue Wait Time and Fruit and Vegetable scores. Australian Food F21 sales increased 5.4% to $44.4 billion, with comparable sales increasing 4.2% (4.5% excluding Tobacco). Two-year average sales growth was 7.1%. eCommerce sales increased 74.7% to $3.5 billion, with sales penetration for the year of 7.9%. H1 sales growth of 10.6% benefitted from COVID-related demand and the successful Disney+ Ooshies and glass containers campaigns. H2 sales increased 0.2% as the business cycled Sales ($M)$44,441 5.4% from F20EBIT ($M)1$2,432 9.0% from F20New stores medium‑term annual target10–255–15WOOLWORTHS SUPERMARKETS METROF21  Highlights$ MILLIONF21(52 WEEKS)F20(52 WEEKS)CHANGESales 44,44142,1515.4%EBITDA before significant items4,0063,7078.1%Depreciation and amortisation(1,574)(1,475)6.7%EBIT before significant items2,4322,2329.0%Significant items(94)(176)n.m.EBIT2,3382,05613.7%Gross margin (%)29.429.221 bpsCODB (%) 124.023.93 bpsEBIT to sales (%) 15.55.318 bpsSales per square metre ($) 18,15817,9351.2%Funds employed 9,7179,1616.1%ROFE (%) 25.825.086 bpsPlastic removed (tonnes) 22,5512,11620.6%Scope 1 & 2 carbon emissions (tonnes)1,784,7861,850,569(3.6)%1 Before significant items.2 Annualised calculated values for each reporting period based on virgin plastic weight removed per unit times annualised sales volumes.24Australian FoodCOVID pantry-loading in the prior year. In Q4, total sales increased 1.2% and comparable sales increased by 0.1%, with cycling of prior year pantry-loading partly offset by elevated sales in May and June following COVID outbreaks in Victoria and NSW and a strong trade plan throughout the year. Own and Exclusive Brands sales increased 5.8% in F21 supported by new products developed by Woolworths FoodCo and launched during the year. The Cook, BBQ and Crumbed ranges continue to resonate well with customers. Metro Food Stores F21 sales declined 4.9% to $897 million, impacted by reduced foot traffic across CBD and transit locations, with comparable sales declining approximately 45% and 30%, respectively. The Group recorded a non-cash impairment of $50 million in F21 in relation to store and lease assets across 13 stores within the network. Adjacency business F21 sales grew 8.9% to $809 million with growth driven by the wholesale businesses. Sales per square metre increased 1.2% to $18,158. During the year, 23 net new stores were opened, including 13 Supermarkets and 10 Metro Food Stores, with 65 Renewals completed. Two new dedicated eCommerce fulfilment centres were also opened in Notting Hill (Vic) and Lidcombe (NSW), and the first eStore in Australia, Carrum Downs (Vic). At the end of the year, there were 996 Supermarkets, 78 Metro Food Stores and two Summergate stores, with a total fleet of 1,076 stores. In Q4, average prices decreased 1.2% (decrease of 2.6% excluding Tobacco), with deflation across all major categories except Tobacco and Meat, due to the cycling of the temporary reduction in promotions in the prior year following the onset of COVID. Inflation in Meat was driven by increased livestock costs.Gross margin (%) increased 21 bps to 29.4% with stock loss improvements through higher sales velocity and successful stock loss initiatives, as well as product mix being favourably impacted by COVID. This was partially offset by higher eCommerce delivery costs.CODB (%) excluding significant items increased 3 bps to 24.0%. COVID costs in the year remained material at $205 million (excluding discretionary team discount and bonus payments) but moderated as the year progressed until an increase in June due to COVID outbreaks. Higher cash CODB reflects incremental store wages associated with higher eCommerce penetration, investment in IT platforms, developing new digital capabilities to optimise the customer experience, incremental supply chain costs including Melbourne Fresh Distribution Centre transition costs, and investment in new businesses. Inflation was broadly offset by productivity benefits. Depreciation and amortisation increased by 6.7% driven by investment in new stores, Renewals, supply chain and shorter-life technology and digital assets. F21 EBIT before significant items increased by 9.0% to $2.4 billion, with H1 growth of 13.0% and H2 growth of 4.5%. EBIT margin increased 18 bps to 5.5%.Funds employed increased $556 million to $9.7 billion from F20, with investment in new stores, Renewals, eCommerce and supply chain as well as higher lease assets from new stores and the reassessment of lease options. This was partially offset by lower net working capital. Despite higher average funds employed, ROFE increased by 86 bps due to the strong increase in EBIT.During the year, we amplified our focus on supporting our communities through living our core value of ‘We Care Deeply’. Together with customers, we provided more than $8 million in support to OzHarvest, Foodbank and Fareshare with 10,000 tonnes of edible surplus food provided to charities. Initiatives in F21 supporting our 2025 Sustainability Plan included solar panels having been installed across 129 Woolworths Supermarkets and four distribution centres, 111,950 tonnes of organic waste diverted from landfill, and the launch of sustainable packaging across a selection of our own brand red meat ranges.Hundreds of healthier products  at Low PricesIn F21 we worked hard to make healthier more affordable, adding more healthier products to our Low Prices program.12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATION25WOOLWORTHS GROUP ANNUAL REPORT 2021Australian FoodWoolworths Supermarkets and Metro Food Stores continued its focus on operating COVIDSafe in F21 as well as a focus on sustainability, health and product. Trading PerformanceAustralian Food VOC NPS (Store and Online) finished F21 at 53, an increase of three points on the prior quarter and in line with the prior year. Store-controllable VOC of 81% increased one point compared to the prior quarter and decreased one point compared to the prior year. Positive Q4 momentum in customer metrics for both stores and online reflects positive sentiment across Ease of Pick up, Queue Wait Time and Fruit and Vegetable scores. Australian Food F21 sales increased 5.4% to $44.4 billion, with comparable sales increasing 4.2% (4.5% excluding Tobacco). Two-year average sales growth was 7.1%. eCommerce sales increased 74.7% to $3.5 billion, with sales penetration for the year of 7.9%. H1 sales growth of 10.6% benefitted from COVID-related demand and the successful Disney+ Ooshies and glass containers campaigns. H2 sales increased 0.2% as the business cycled Sales ($M)$44,441 5.4% from F20EBIT ($M)1$2,432 9.0% from F20New stores medium‑term annual target10–255–15WOOLWORTHS SUPERMARKETS METROF21  Highlights$ MILLIONF21(52 WEEKS)F20(52 WEEKS)CHANGESales 44,44142,1515.4%EBITDA before significant items4,0063,7078.1%Depreciation and amortisation(1,574)(1,475)6.7%EBIT before significant items2,4322,2329.0%Significant items(94)(176)n.m.EBIT2,3382,05613.7%Gross margin (%)29.429.221 bpsCODB (%) 124.023.93 bpsEBIT to sales (%) 15.55.318 bpsSales per square metre ($) 18,15817,9351.2%Funds employed 9,7179,1616.1%ROFE (%) 25.825.086 bpsPlastic removed (tonnes) 22,5512,11620.6%Scope 1 & 2 carbon emissions (tonnes)1,784,7861,850,569(3.6)%1 Before significant items.2 Annualised calculated values for each reporting period based on virgin plastic weight removed per unit times annualised sales volumes.24Australian FoodCOVID pantry-loading in the prior year. In Q4, total sales increased 1.2% and comparable sales increased by 0.1%, with cycling of prior year pantry-loading partly offset by elevated sales in May and June following COVID outbreaks in Victoria and NSW and a strong trade plan throughout the year. Own and Exclusive Brands sales increased 5.8% in F21 supported by new products developed by Woolworths FoodCo and launched during the year. The Cook, BBQ and Crumbed ranges continue to resonate well with customers. Metro Food Stores F21 sales declined 4.9% to $897 million, impacted by reduced foot traffic across CBD and transit locations, with comparable sales declining approximately 45% and 30%, respectively. The Group recorded a non-cash impairment of $50 million in F21 in relation to store and lease assets across 13 stores within the network. Adjacency business F21 sales grew 8.9% to $809 million with growth driven by the wholesale businesses. Sales per square metre increased 1.2% to $18,158. During the year, 23 net new stores were opened, including 13 Supermarkets and 10 Metro Food Stores, with 65 Renewals completed. Two new dedicated eCommerce fulfilment centres were also opened in Notting Hill (Vic) and Lidcombe (NSW), and the first eStore in Australia, Carrum Downs (Vic). At the end of the year, there were 996 Supermarkets, 78 Metro Food Stores and two Summergate stores, with a total fleet of 1,076 stores. In Q4, average prices decreased 1.2% (decrease of 2.6% excluding Tobacco), with deflation across all major categories except Tobacco and Meat, due to the cycling of the temporary reduction in promotions in the prior year following the onset of COVID. Inflation in Meat was driven by increased livestock costs.Gross margin (%) increased 21 bps to 29.4% with stock loss improvements through higher sales velocity and successful stock loss initiatives, as well as product mix being favourably impacted by COVID. This was partially offset by higher eCommerce delivery costs.CODB (%) excluding significant items increased 3 bps to 24.0%. COVID costs in the year remained material at $205 million (excluding discretionary team discount and bonus payments) but moderated as the year progressed until an increase in June due to COVID outbreaks. Higher cash CODB reflects incremental store wages associated with higher eCommerce penetration, investment in IT platforms, developing new digital capabilities to optimise the customer experience, incremental supply chain costs including Melbourne Fresh Distribution Centre transition costs, and investment in new businesses. Inflation was broadly offset by productivity benefits. Depreciation and amortisation increased by 6.7% driven by investment in new stores, Renewals, supply chain and shorter-life technology and digital assets. F21 EBIT before significant items increased by 9.0% to $2.4 billion, with H1 growth of 13.0% and H2 growth of 4.5%. EBIT margin increased 18 bps to 5.5%.Funds employed increased $556 million to $9.7 billion from F20, with investment in new stores, Renewals, eCommerce and supply chain as well as higher lease assets from new stores and the reassessment of lease options. This was partially offset by lower net working capital. Despite higher average funds employed, ROFE increased by 86 bps due to the strong increase in EBIT.During the year, we amplified our focus on supporting our communities through living our core value of ‘We Care Deeply’. Together with customers, we provided more than $8 million in support to OzHarvest, Foodbank and Fareshare with 10,000 tonnes of edible surplus food provided to charities. Initiatives in F21 supporting our 2025 Sustainability Plan included solar panels having been installed across 129 Woolworths Supermarkets and four distribution centres, 111,950 tonnes of organic waste diverted from landfill, and the launch of sustainable packaging across a selection of our own brand red meat ranges.Hundreds of healthier products  at Low PricesIn F21 we worked hard to make healthier more affordable, adding more healthier products to our Low Prices program.12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATION25WOOLWORTHS GROUP ANNUAL REPORT 202126

AUSTRALIAN FOOD

Introduction of recyclable 
meat trays

In September, Woolworths launched new recyclable 
paper meat trays across a selection of its own brand 
beef, the latest milestone as part of larger sustainability 
commitments to introduce more sustainable packaging. 
The new paper trays used for Woolworths’ Specially 
Selected and Grass Fed beef ranges are the first step 
in a plan to make all Woolworths’ own brand red meat 
trays recyclable. The redesigned packaging now uses 
75% less plastic than the previous packaging and will 
eliminate 114 tonnes of plastic from the supply chain 
each year across seven popular beef cuts.

Today’s Fresh Food People 

In July of this year ‘Today’s Fresh Food People’ was 
relaunched as a reimagination of what being the fresh 
food people means today and how it will continue to 
evolve in the future. ‘Today’s Fresh Food People’ is all 
about good food, celebrating Australian fresh, helping 
customers make healthier choices, caring for local 
communities, and helping to create a greener planet. 
The campaign will continue to come to life throughout 
F22 and we will continue to differentiate ourselves and 
solidify our stance on the things that matter most to our 
customers and communities.

Free Fruit for Kids hits  
100 million milestone

More than 100 million pieces of fruit have now 
been given to Australian kids since the launch 
of Woolworths Free Fruit For Kids program. 
Building fresh fruit habits from an early age, 
the Woolworths initiative was the first national 
program of its kind when it began in 2015, aimed 
to help get more fruit into kids' diets. Woolworths 
estimates more than 14,000 tonnes of free 
fruit have been eaten by kids since the program 
launched – the equivalent to filling more than six 
Olympic sized swimming pools.

Woolworths named Green Supermarket of the YearIn F21 Woolworths was named Green Supermarket of the Year by Finder, which helps Australians find companies leading the way on sustainability. In F21, Woolworths Supermarkets has been working hard to make positive changes that customers can see in their shopping baskets, including increased plastic reduction and recycling, as well as making the entire business more sustainable. The award recognised the Group's science-based emissions targets and our commitment to external benchmarks, as well as supplier engagement, which are detailed in the Sustainability Plan 2025. F21 saw the launch of our newest sustainability store in West End, Qld which has sustainability at the centre of the store’s construction and design, bringing together a number of our key sustainability initiatives. The new store will operate with 15% fewer greenhouse gas emissions than the average Woolworths supermarket in Qld, which is equivalent to taking 290 cars off the road each year. The store's shopping trolleys are made from 100% locally sourced recycled milk bottles and customers can return used batteries, mobile phones, coffee pods and soft plastics to recycling stations in the store.  Woolworths supports Australia’s dairy farming innovators Woolworths has invested more than $2 million in grants to 24 dairy farms across Australia to support innovation, efficiency and seasonal resilience. The inaugural round of the Woolworths Dairy Innovation Fund has awarded grants up to $100,000 to farmers for future focused projects, including solar‑powered desalination, milk sensor technology, enhanced bushfire protection, herd monitoring technology and dairy automation.With this season delivering the best conditions many dairies have seen in recent years, the projects to be funded show a concerted focus on investments that will shore up farms to withstand future seasonal challenges.Three mini Supermarket stores launched in special education schools We’re proud to have continued our collaboration with our technology partner Fujitsu to launch mini supermarket stores in Australian special education schools. Since 2018 we’ve launched three mini supermarket stores in NSW and ACT, with plans to launch a fourth in SA in F22. The mini Supermarkets provide students with work experience in a safe environment that promotes skills, knowledge, independence, confidence and self-esteem. Each of the stores feature registers, products, ticketing and signage, as well as uniforms and name badges, and provides students with an opportunity to gain an authentic retail experience. 12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATION27WOOLWORTHS GROUP ANNUAL REPORT 202126

AUSTRALIAN FOOD

Introduction of recyclable 

meat trays

In September, Woolworths launched new recyclable 

paper meat trays across a selection of its own brand 

beef, the latest milestone as part of larger sustainability 

commitments to introduce more sustainable packaging. 

The new paper trays used for Woolworths’ Specially 

Selected and Grass Fed beef ranges are the first step 

in a plan to make all Woolworths’ own brand red meat 

trays recyclable. The redesigned packaging now uses 

75% less plastic than the previous packaging and will 

eliminate 114 tonnes of plastic from the supply chain 

each year across seven popular beef cuts.

Today’s Fresh Food People 

In July of this year ‘Today’s Fresh Food People’ was 

relaunched as a reimagination of what being the fresh 

food people means today and how it will continue to 

evolve in the future. ‘Today’s Fresh Food People’ is all 

about good food, celebrating Australian fresh, helping 

customers make healthier choices, caring for local 

communities, and helping to create a greener planet. 

The campaign will continue to come to life throughout 

F22 and we will continue to differentiate ourselves and 

solidify our stance on the things that matter most to our 

customers and communities.

Free Fruit for Kids hits  

100 million milestone

More than 100 million pieces of fruit have now 

been given to Australian kids since the launch 

of Woolworths Free Fruit For Kids program. 

Building fresh fruit habits from an early age, 

the Woolworths initiative was the first national 

program of its kind when it began in 2015, aimed 

to help get more fruit into kids' diets. Woolworths 

estimates more than 14,000 tonnes of free 

fruit have been eaten by kids since the program 

launched – the equivalent to filling more than six 

Olympic sized swimming pools.

Woolworths named Green Supermarket of the YearIn F21 Woolworths was named Green Supermarket of the Year by Finder, which helps Australians find companies leading the way on sustainability. In F21, Woolworths Supermarkets has been working hard to make positive changes that customers can see in their shopping baskets, including increased plastic reduction and recycling, as well as making the entire business more sustainable. The award recognised the Group's science-based emissions targets and our commitment to external benchmarks, as well as supplier engagement, which are detailed in the Sustainability Plan 2025. F21 saw the launch of our newest sustainability store in West End, Qld which has sustainability at the centre of the store’s construction and design, bringing together a number of our key sustainability initiatives. The new store will operate with 15% fewer greenhouse gas emissions than the average Woolworths supermarket in Qld, which is equivalent to taking 290 cars off the road each year. The store's shopping trolleys are made from 100% locally sourced recycled milk bottles and customers can return used batteries, mobile phones, coffee pods and soft plastics to recycling stations in the store.  Woolworths supports Australia’s dairy farming innovators Woolworths has invested more than $2 million in grants to 24 dairy farms across Australia to support innovation, efficiency and seasonal resilience. The inaugural round of the Woolworths Dairy Innovation Fund has awarded grants up to $100,000 to farmers for future focused projects, including solar‑powered desalination, milk sensor technology, enhanced bushfire protection, herd monitoring technology and dairy automation.With this season delivering the best conditions many dairies have seen in recent years, the projects to be funded show a concerted focus on investments that will shore up farms to withstand future seasonal challenges.Three mini Supermarket stores launched in special education schools We’re proud to have continued our collaboration with our technology partner Fujitsu to launch mini supermarket stores in Australian special education schools. Since 2018 we’ve launched three mini supermarket stores in NSW and ACT, with plans to launch a fourth in SA in F22. The mini Supermarkets provide students with work experience in a safe environment that promotes skills, knowledge, independence, confidence and self-esteem. Each of the stores feature registers, products, ticketing and signage, as well as uniforms and name badges, and provides students with an opportunity to gain an authentic retail experience. 12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATION27WOOLWORTHS GROUP ANNUAL REPORT 2021F21 has been a record year for WooliesX that saw a scaling of convenience propositions as a result of increased demand from customers choosing eCommerce services. Trading PerformanceWooliesX’s Digital and Media business reported an increase in average weekly traffic to Woolworths’ websites and apps of 25.8% to 12.1 million in F21. Improving customer satisfaction with their digital experiences, in particular helping inspire, plan and shop safely remained the focus. Key upgrades to experiences included personalised lists, the launch of Fresh Ideas for You on the Woolworths App, addition of new recipes and launching in-app push notifications. Cartology continued to enhance its client experience through expanded inventory and data-led customer insights and achieved strong growth across all key advertising channels. By year end, Cartology digital advertising screens had been rolled out to 1,218 stores across Woolworths Supermarkets and Dan Murphy’s. eCommerce sales grew by $1.5 billion (+74.7%) to $3.5 billion in F21 representing 7.9% of Australian Food sales, up 3.1 points on the prior year. Growth moderated to 36.5% in Q4 as the business cycled strong demand last year.Perfect order ended the year at an all-time high, improving by 20.9% on the prior year, through a focus on complete baskets and improving on-time delivery. VOC NPS improved consistently as the year progressed. Over the year, the business met the demand for increased convenience by adding 379 Direct to boot sites assisting Pick up penetration to reach 37.5% of sales in Q4. Another 125 Delivery Now locations were added, and same day delivery was rolled out to 425 stores where customers can order and receive their order within a one-hour window later in the day. eCom sales ($M)$3,523 74.7% from F20eCOM & FULFILMENTAverage weekly traffic (million)12.1in Q4'21DIGITAL & MEDIADigital metricsQ4’21 (12 WEEKS)Q3’21 (13 WEEKS)Q2’21 (13  WEEKS)Q1’21 (14 WEEKS)Average weekly traffic to digital assets 1 (million)12.112.412.411.4Average weekly traffic growth  (year on year %) 12.4%47.7%69.8%75.5%eCommerce metricsQ4’21 (12 WEEKS)Q3’21 (13 WEEKS)Q2’21 (13  WEEKS)Q1’21 (14 WEEKS)Customer metricsOnline VOC NPS63605858eCommerce sales metricseCommerce sales ($ million) 2838878846961eCommerce sales growth36.5%90.5%83.3%100.0%eCommerce penetration8.5%7.9%7.4%8.0%Pick up mix (% of eCommerce sales)37.5%35.7%33.1%32.1%Everyday Rewards metricsQ4’21 (12 WEEKS)Q3’21 (13 WEEKS)Q2’21 (13  WEEKS)Q1’21 (14 WEEKS)Total Everyday Rewards members (million)13.112.912.812.6Scan rate 3 (%)53.7%54.0%53.6%53.1%1 Digital assets include Woolworths website and app, Everyday Rewards website and app, and Woolworths Insurance website.2 WooliesX sales numbers are included in Australian Food total and comparable sales.3 Scan rate for Woolworths Supermarkets excluding Tobacco.28Woolworths at Work was launched to provide businesses with a tailored online shopping experience. The platform provides access to features such as line of credit, consolidated billing, and two-hour delivery windows.WooliesX eCom services was recognised by Australians in the 2021 Mozo People's Choice Awards as the highest rated online supermarket, winning all seven awards in the category. Everyday Rewards members increased 6.0% to 13.1 million, with scan rates improving to 53.7% by year end. The Everyday Rewards app continues to provide value and convenience to members across partners, with the ability to boost offers, check points balance and access eReceipts. The Everyday Rewards program increased the value available to customers by adding new partners, including Origin Energy, SuperPharmacy and Pet Culture. Strong member engagement with record levels of interest and participation were driven by the Rewards exclusive glass container collectable and Bank for Christmas offering, as well as the ability for members to continue to earn Qantas Points. Wpay was launched as a standalone payments business in June and will offer customers cost effective solutions such as transaction processing, settlement services, in-store terminals, custom gifting and loyalty initiatives and reporting and analytics.  WooliesX wins 2021 Mozo People’s Choice Awards WooliesX eCom services recognised as the highest rated online supermarket, winning all seven awards in the category.Everyday Rewards has rebranded and expanded to deliver an even better customer experience. Membership has grown by almost one million and the program now has more than 13 million members, many of whom are connecting with us in the Everyday Rewards app and millions who are boosting personalised offers regularly. The app celebrated its first birthday and weekly active users continue to grow, creating even more opportunities to connect with customers multiple times across the week. Our first ever Everyday Rewards branded collectable campaign launched in F21, with 1.6 million members participating, and new partnerships were established with Bupa, Origin, Pet Culture and SuperPharmacy, further expanding the value Everyday Rewards offers members. Everyday Rewards members were also given the opportunity to choose eReceipts when they shop in-store at Woolworths, BIG W and BWS. Opting out of paper receipts is not only convenient for customers but also another small step towards our commitment to reduce waste as we strive toward a better tomorrow. EVERYDAY REWARDS Ultra ConvenienceOur commitment to convenience continues to see increasing numbers of customers choosing our eCommerce services to complement their in‑store shopping experience. Our rapid and consistent response to consumer need for contactless, COVIDSafe shopping, included the ongoing support of Priority Assist services dedicated to the elderly and vulnerable. We also saw subscriptions grow our customer base with the launch of a revamped Delivery Unlimited. We scaled convenience propositions in response to demand, expanding to offer a range of different services from next day delivery to Same Day (425 stores), frictionless Direct to boot (629 stores) and Delivery Now (232 stores). In addition, we launched our first automated eStore at Carrum Downs and shared plans for our first automated customer fulfilment centre set to open in Auburn in 2024, which will ensure continued convenient service growth. At the same time, NPS continued to improve with improvements to availability and the launch of new features, like ‘Quick Reorder’ and ‘Have You Forgotten’, delivering an even more personalised, seamless experience for customers and making online shopping easier. As customers increasingly shop eCommerce on the go, the Woolworths App has grown in popularity.12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATION29WOOLWORTHS GROUP ANNUAL REPORT 2021F21 has been a record year for WooliesX that saw a scaling of convenience propositions as a result of increased demand from customers choosing eCommerce services. Trading PerformanceWooliesX’s Digital and Media business reported an increase in average weekly traffic to Woolworths’ websites and apps of 25.8% to 12.1 million in F21. Improving customer satisfaction with their digital experiences, in particular helping inspire, plan and shop safely remained the focus. Key upgrades to experiences included personalised lists, the launch of Fresh Ideas for You on the Woolworths App, addition of new recipes and launching in-app push notifications. Cartology continued to enhance its client experience through expanded inventory and data-led customer insights and achieved strong growth across all key advertising channels. By year end, Cartology digital advertising screens had been rolled out to 1,218 stores across Woolworths Supermarkets and Dan Murphy’s. eCommerce sales grew by $1.5 billion (+74.7%) to $3.5 billion in F21 representing 7.9% of Australian Food sales, up 3.1 points on the prior year. Growth moderated to 36.5% in Q4 as the business cycled strong demand last year.Perfect order ended the year at an all-time high, improving by 20.9% on the prior year, through a focus on complete baskets and improving on-time delivery. VOC NPS improved consistently as the year progressed. Over the year, the business met the demand for increased convenience by adding 379 Direct to boot sites assisting Pick up penetration to reach 37.5% of sales in Q4. Another 125 Delivery Now locations were added, and same day delivery was rolled out to 425 stores where customers can order and receive their order within a one-hour window later in the day. eCom sales ($M)$3,523 74.7% from F20eCOM & FULFILMENTAverage weekly traffic (million)12.1in Q4'21DIGITAL & MEDIADigital metricsQ4’21 (12 WEEKS)Q3’21 (13 WEEKS)Q2’21 (13  WEEKS)Q1’21 (14 WEEKS)Average weekly traffic to digital assets 1 (million)12.112.412.411.4Average weekly traffic growth  (year on year %) 12.4%47.7%69.8%75.5%eCommerce metricsQ4’21 (12 WEEKS)Q3’21 (13 WEEKS)Q2’21 (13  WEEKS)Q1’21 (14 WEEKS)Customer metricsOnline VOC NPS63605858eCommerce sales metricseCommerce sales ($ million) 2838878846961eCommerce sales growth36.5%90.5%83.3%100.0%eCommerce penetration8.5%7.9%7.4%8.0%Pick up mix (% of eCommerce sales)37.5%35.7%33.1%32.1%Everyday Rewards metricsQ4’21 (12 WEEKS)Q3’21 (13 WEEKS)Q2’21 (13  WEEKS)Q1’21 (14 WEEKS)Total Everyday Rewards members (million)13.112.912.812.6Scan rate 3 (%)53.7%54.0%53.6%53.1%1 Digital assets include Woolworths website and app, Everyday Rewards website and app, and Woolworths Insurance website.2 WooliesX sales numbers are included in Australian Food total and comparable sales.3 Scan rate for Woolworths Supermarkets excluding Tobacco.28Woolworths at Work was launched to provide businesses with a tailored online shopping experience. The platform provides access to features such as line of credit, consolidated billing, and two-hour delivery windows.WooliesX eCom services was recognised by Australians in the 2021 Mozo People's Choice Awards as the highest rated online supermarket, winning all seven awards in the category. Everyday Rewards members increased 6.0% to 13.1 million, with scan rates improving to 53.7% by year end. The Everyday Rewards app continues to provide value and convenience to members across partners, with the ability to boost offers, check points balance and access eReceipts. The Everyday Rewards program increased the value available to customers by adding new partners, including Origin Energy, SuperPharmacy and Pet Culture. Strong member engagement with record levels of interest and participation were driven by the Rewards exclusive glass container collectable and Bank for Christmas offering, as well as the ability for members to continue to earn Qantas Points. Wpay was launched as a standalone payments business in June and will offer customers cost effective solutions such as transaction processing, settlement services, in-store terminals, custom gifting and loyalty initiatives and reporting and analytics.  WooliesX wins 2021 Mozo People’s Choice Awards WooliesX eCom services recognised as the highest rated online supermarket, winning all seven awards in the category.Everyday Rewards has rebranded and expanded to deliver an even better customer experience. Membership has grown by almost one million and the program now has more than 13 million members, many of whom are connecting with us in the Everyday Rewards app and millions who are boosting personalised offers regularly. The app celebrated its first birthday and weekly active users continue to grow, creating even more opportunities to connect with customers multiple times across the week. Our first ever Everyday Rewards branded collectable campaign launched in F21, with 1.6 million members participating, and new partnerships were established with Bupa, Origin, Pet Culture and SuperPharmacy, further expanding the value Everyday Rewards offers members. Everyday Rewards members were also given the opportunity to choose eReceipts when they shop in-store at Woolworths, BIG W and BWS. Opting out of paper receipts is not only convenient for customers but also another small step towards our commitment to reduce waste as we strive toward a better tomorrow. EVERYDAY REWARDS Ultra ConvenienceOur commitment to convenience continues to see increasing numbers of customers choosing our eCommerce services to complement their in‑store shopping experience. Our rapid and consistent response to consumer need for contactless, COVIDSafe shopping, included the ongoing support of Priority Assist services dedicated to the elderly and vulnerable. We also saw subscriptions grow our customer base with the launch of a revamped Delivery Unlimited. We scaled convenience propositions in response to demand, expanding to offer a range of different services from next day delivery to Same Day (425 stores), frictionless Direct to boot (629 stores) and Delivery Now (232 stores). In addition, we launched our first automated eStore at Carrum Downs and shared plans for our first automated customer fulfilment centre set to open in Auburn in 2024, which will ensure continued convenient service growth. At the same time, NPS continued to improve with improvements to availability and the launch of new features, like ‘Quick Reorder’ and ‘Have You Forgotten’, delivering an even more personalised, seamless experience for customers and making online shopping easier. As customers increasingly shop eCommerce on the go, the Woolworths App has grown in popularity.12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATION29WOOLWORTHS GROUP ANNUAL REPORT 2021New Zealand FoodIn F21 New Zealand Food focused on scaling its eCommerce services and ongoing digital transformation.Trading Performance 1New Zealand Food’s customer scores declined marginally on the prior year with F21 VOC NPS decreasing two points to 45 and Store-controllable VOC also decreasing two points at 80%. Some softening took place in Q4 with Out of Stocks, which was impacted by a combination of global supply challenges and shipping delays and stronger sales than anticipated. Total sales for F21 declined 0.6% to $7.1 billion, cycling the strict COVID lockdowns in H2 F20. Sales in H2 decreased 5.5% after cycling growth of 13.8% in the prior year. Q4 sales declined 3.9% and comparable sales declined 4.2%; average two-year comparable growth in Q4 rose to 4.9%. Digital and eCommerce momentum was again a highlight for the year. eCommerce sales grew 30.2%, despite cycling elevated sales from COVID impacts in H2, with Q4 penetration at 12.5%. Additional capacity was added with two new eStores in Grenada North (Lower North Island) and Moorhouse (Christchurch); the first two automated fulfilment units were launched in partnership with Takeoff Technologies at the Auckland Penrose eStore in January and at Moorhouse in March. Other digital highlights include the launch and scale-up of the Countdown transactional app and Delivery Saver subscription service. Further innovations included two Cleveron locker units for Pick up and the roll out of Scan&Go to six stores. F21  HighlightsEBIT (NZ$M)$361 (4.6)% from F20New stores medium‑term annual target3–4Sales (NZ$M)$7,146 (0.6)% from F20NZD $ MILLIONF21 (52 WEEKS)F20 (52 WEEKS)CHANGESales 7,1467,192(0.6)%EBITDA633634(0.2)%Depreciation and amortisation(272)(256)6.3%EBIT361378(4.6)%Gross margin (%)25.325.024 bpsCODB (%)20.219.845 bpsEBIT to sales (%)5.05.3(21) bpsSales per square metre ($) 17,14717,832(3.8)%Funds employed 4,3294,1903.3%ROFE (%)8.48.8(40) bpsPlastic removed (tonnes) 216.4–n.m.Scope 1 & 2 carbon emissions (tonnes)61,80268,426(9.7)%1 Growth for New Zealand Food quoted in New Zealand Dollars.2 Annualised calculated values for each reporting period based on virgin plastic weight removed per unit times annualised volumes.30New Zealand FoodIn October, a simplified and strengthened Onecard rewards program was launched and Cartology New Zealand was launched in February. Two new Countdown stores were opened in Pokeno and Richmond, the first New Zealand 4 star Green Star rated store, and one Metro store. Two replacement Countdown stores and 10 Renewals were also completed. Sales per square metre declined by 3.8% to $17,147 due to the reduction in sales and an increase in average space.  The new Hilton meat plant went live in July 2021 supplying cabinet ready meat to all North Island Countdown stores. Progress was made on the new Palmerston North ambient and Auckland Fresh distribution centres which are scheduled for opening in September 2021 and May 2022, respectively.New Zealand Food’s franchise stores (Fresh Choice and Super Value) had strong two-year sales growth despite the impact from lack of international tourists, particularly over the summer period. One new Super Value store opened in December.Average prices decreased by 0.5% in Q4 primarily driven by deflation in Grocery, Perishables and Meat, which was partly offset by some inflation in Produce. The reduction in average prices moderated relative to Q3 which experienced a more significant COVID impact last year than Q4, with both quarters impacted by a reduction in promotions in H2 F20.  Gross profit (%) increased 24 bps on last year, helped by continued progress in stock loss, mix improvements and increased use of data-driven tools in category management, such as the promotional effectiveness tool. A new ‘Value You Can Count On’ campaign was launched to accompany over 4,000 products on the Great Price program.CODB (%) increased by 45 bps, with the biggest driver being team member wage increases driven by enterprise agreements. Other increases included store depreciation and digital spend arising from investment in the store network, eCommerce capacity and mix and digital capability, which have helped support eCommerce growth.EBIT for the year was $361 million, a 4.6% decline on the prior year following a 10.7% increase in EBIT in F20. H2 EBIT declined 13.3% due to cycling COVID. Following the launch of Countdown’s 2025 Sustainability Commitments, progress has continued in F21, including no longer selling plastic cutlery from our stores as well as shifting our fresh pasta into PET from PVC, all hot smoked salmon to clear PET and the removals of all glitter products from our stores. We also explored new opportunities to reduce carbon emissions, including working with the Sustainable Business Council and other businesses and logistics operators to develop the Low Carbon Freight Pathway report to progressively decarbonise New Zealand’s freight system. Q4'21 eCom  penetration12.5%F21 eCom  sales growth 30.2%eCommerce continued  to gain momentum in F21 Richmond store  Green Star accreditation In late F21, Countdown delivered New Zealand’s very first Green Star accredited supermarket. Countdown Richmond has been built with sustainability at the heart of both its construction and design and will be accredited in the coming months. The store is Countdown’s first site with solar panels, which will deliver up to 10–15% of the energy needed to run the store. Other initiatives include doors on fridges to reduce energy use, a transcritical refrigeration system, digital shelf tickets to prevent paper going to landfill, water efficient fixtures and fittings and much more. Richmond is the first of many Green Star projects for Countdown as it works towards meeting its commitment that all new property developments will have a 4 star Green Star design and as-built rating, and a 5 star Green Star minimum standard by 2025.Total eStores 412345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATION31WOOLWORTHS GROUP ANNUAL REPORT 2021New Zealand FoodIn F21 New Zealand Food focused on scaling its eCommerce services and ongoing digital transformation.Trading Performance 1New Zealand Food’s customer scores declined marginally on the prior year with F21 VOC NPS decreasing two points to 45 and Store-controllable VOC also decreasing two points at 80%. Some softening took place in Q4 with Out of Stocks, which was impacted by a combination of global supply challenges and shipping delays and stronger sales than anticipated. Total sales for F21 declined 0.6% to $7.1 billion, cycling the strict COVID lockdowns in H2 F20. Sales in H2 decreased 5.5% after cycling growth of 13.8% in the prior year. Q4 sales declined 3.9% and comparable sales declined 4.2%; average two-year comparable growth in Q4 rose to 4.9%. Digital and eCommerce momentum was again a highlight for the year. eCommerce sales grew 30.2%, despite cycling elevated sales from COVID impacts in H2, with Q4 penetration at 12.5%. Additional capacity was added with two new eStores in Grenada North (Lower North Island) and Moorhouse (Christchurch); the first two automated fulfilment units were launched in partnership with Takeoff Technologies at the Auckland Penrose eStore in January and at Moorhouse in March. Other digital highlights include the launch and scale-up of the Countdown transactional app and Delivery Saver subscription service. Further innovations included two Cleveron locker units for Pick up and the roll out of Scan&Go to six stores. F21  HighlightsEBIT (NZ$M)$361 (4.6)% from F20New stores medium‑term annual target3–4Sales (NZ$M)$7,146 (0.6)% from F20NZD $ MILLIONF21 (52 WEEKS)F20 (52 WEEKS)CHANGESales 7,1467,192(0.6)%EBITDA633634(0.2)%Depreciation and amortisation(272)(256)6.3%EBIT361378(4.6)%Gross margin (%)25.325.024 bpsCODB (%)20.219.845 bpsEBIT to sales (%)5.05.3(21) bpsSales per square metre ($) 17,14717,832(3.8)%Funds employed 4,3294,1903.3%ROFE (%)8.48.8(40) bpsPlastic removed (tonnes) 216.4–n.m.Scope 1 & 2 carbon emissions (tonnes)61,80268,426(9.7)%1 Growth for New Zealand Food quoted in New Zealand Dollars.2 Annualised calculated values for each reporting period based on virgin plastic weight removed per unit times annualised volumes.30New Zealand FoodIn October, a simplified and strengthened Onecard rewards program was launched and Cartology New Zealand was launched in February. Two new Countdown stores were opened in Pokeno and Richmond, the first New Zealand 4 star Green Star rated store, and one Metro store. Two replacement Countdown stores and 10 Renewals were also completed. Sales per square metre declined by 3.8% to $17,147 due to the reduction in sales and an increase in average space.  The new Hilton meat plant went live in July 2021 supplying cabinet ready meat to all North Island Countdown stores. Progress was made on the new Palmerston North ambient and Auckland Fresh distribution centres which are scheduled for opening in September 2021 and May 2022, respectively.New Zealand Food’s franchise stores (Fresh Choice and Super Value) had strong two-year sales growth despite the impact from lack of international tourists, particularly over the summer period. One new Super Value store opened in December.Average prices decreased by 0.5% in Q4 primarily driven by deflation in Grocery, Perishables and Meat, which was partly offset by some inflation in Produce. The reduction in average prices moderated relative to Q3 which experienced a more significant COVID impact last year than Q4, with both quarters impacted by a reduction in promotions in H2 F20.  Gross profit (%) increased 24 bps on last year, helped by continued progress in stock loss, mix improvements and increased use of data-driven tools in category management, such as the promotional effectiveness tool. A new ‘Value You Can Count On’ campaign was launched to accompany over 4,000 products on the Great Price program.CODB (%) increased by 45 bps, with the biggest driver being team member wage increases driven by enterprise agreements. Other increases included store depreciation and digital spend arising from investment in the store network, eCommerce capacity and mix and digital capability, which have helped support eCommerce growth.EBIT for the year was $361 million, a 4.6% decline on the prior year following a 10.7% increase in EBIT in F20. H2 EBIT declined 13.3% due to cycling COVID. Following the launch of Countdown’s 2025 Sustainability Commitments, progress has continued in F21, including no longer selling plastic cutlery from our stores as well as shifting our fresh pasta into PET from PVC, all hot smoked salmon to clear PET and the removals of all glitter products from our stores. We also explored new opportunities to reduce carbon emissions, including working with the Sustainable Business Council and other businesses and logistics operators to develop the Low Carbon Freight Pathway report to progressively decarbonise New Zealand’s freight system. Q4'21 eCom  penetration12.5%F21 eCom  sales growth 30.2%eCommerce continued  to gain momentum in F21 Richmond store  Green Star accreditation In late F21, Countdown delivered New Zealand’s very first Green Star accredited supermarket. Countdown Richmond has been built with sustainability at the heart of both its construction and design and will be accredited in the coming months. The store is Countdown’s first site with solar panels, which will deliver up to 10–15% of the energy needed to run the store. Other initiatives include doors on fridges to reduce energy use, a transcritical refrigeration system, digital shelf tickets to prevent paper going to landfill, water efficient fixtures and fittings and much more. Richmond is the first of many Green Star projects for Countdown as it works towards meeting its commitment that all new property developments will have a 4 star Green Star design and as-built rating, and a 5 star Green Star minimum standard by 2025.Total eStores 412345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATION31WOOLWORTHS GROUP ANNUAL REPORT 2021Trading PerformanceBIG W’s continued focus on its purpose of making a real difference for families has had a positive impact on customer metrics with Store-controllable VOC at 83%, an improvement of six points compared to the prior year. VOC NPS (Store and Online) increased four points on the prior year to 62 and softened one point from Q3. Notable improvements in VOC include Stock Availability, Ease of Locating Products and Correct Price Ticketing. BIG W achieved record annual sales of $4.6 billion in F21, up 11.6% on the prior year, with comparable sales increasing by 13.0%. All major categories experienced strong annual growth. Q4 total sales declined 10.4% (comparable: -9.4%) with trade impacted by lockdowns across Victoria and NSW in late Q4, and the cycling of the peak COVID demand in the prior year. Two-year average comparable sales growth in Q4 was 10.6%, supported by a strong customer plan and a successful Toy Mania sale event.  BIG W’s digital acceleration continued in Q4 with eCommerce sales growth of 4.6% and penetration reaching a record 9.9%, up from 8.4% in the prior year. In Q4, BIG W X remained focused on creating more connected and convenient customer experiences by launching a new BIG W website, F21  HighlightsEBIT ($M)$172 344.9% from F20Commitment to building a sustainable future for familiesPrioritising our Planet goal and responding to customer shopping patterns, BIG W transitioned from print to exclusively digital catalogues (outside of the much loved Toy Mania catalogue), saving at least 8,000 tonnes of paper in F21.Sales ($M)$4,583 11.6% from F20$ MILLIONF21 (52 WEEKS)F20 (52 WEEKS)CHANGESales 4,5834,10611.6%EBITDA34820767.6%Depreciation and amortisation(176)(168)4.2%EBIT17239344.9%Gross margin (%)33.631.8180 bpsCODB (%)29.930.9(100) bpsEBIT to sales (%)3.70.9280 bpsSales per square metre ($) 4,5173,96214.0%Funds employed 1,19494726.1%ROFE (%)16.53.612.9 ptsPlastic removed (tonnes) 13.1–n.m.Scope 1 & 2 carbon emissions (tonnes)115,882126,764(8.6)%1 Annualised calculated values for each reporting period based on virgin plastic weight removed per unit times annualised sales volumes.BIG WF21 was a strong year for BIG W that saw improved customer scores and sales growth as it continued to live its purpose of making a real difference for families. 32evolving the online layby solution, as well as rolling out contactless Direct to boot to a further four locations, bringing total locations to 76.  BIG W closed three stores during the year as part of its ongoing property network review, with total store numbers now at 176. Sales per square metre increased 14.0% due to strong sales growth and lower average space than the prior year. As previously announced, the Monarto DC closed in Q4, with the transition to a new third-party DC network in Perth and Melbourne in place from Q3. Gross profit (%) improved 180 bps in F21, with stronger margin expansion in H2 from continuing momentum in full price Apparel sales, coupled with H2 category mix changes due to cycling elevated sales of lower margin COVID-impacted categories, including Leisure and Toys and Home Essentials last year. CODB (%) reduced by 100 bps due to better fixed cost leverage, partly offset by the annualisation of costs associated with a new enterprise agreement, higher supply chain costs driven by the transition of Monarto DC to a third-party logistics provider, higher costs to support digital sales acceleration and investment in building digital and data analytics, and insight capability across teams.  BIG W’s EBIT increased 344.9% to $172 million, and an EBIT margin of 3.7%, up from 0.9% in the prior year.  Closing inventory was higher than the prior year due to higher inventory to support increased sales volumes, as well as normalising from COVID surge buying and stock availability challenges impacting last year. Average inventory days declined on the prior year due to sales momentum and good stock management. Higher closing inventory and capital investments resulted in higher funds employed at the end of the period. Despite this, ROFE improved to 16.5%, up from 3.6% in F20, due to the material EBIT increase compared to the prior year.BIG W continued to show real care for our communities through continuing its Free Books for Kids initiative distributing over 4.8 million free books to families. BIG W is committed to Woolworths Group’s 2025 Sustainability Plan and has made progress in a number of areas during the year, including the activation of ethical partnerships through the whole value chain such as Action Collaboration Transformation and Better Cotton Initiative. We recognise that reducing plastics is important to our customers and whilst pleased with our start, there is a lot more to do in the coming year.Making a real difference for families BIG W continued to focus on its purpose of “making a real difference for families” throughout F21. Through the challenges of COVID, the BIG W team continued to provide an essential service, while their financial, physical and mental wellbeing was supported. In the community, BIG W’s partnership with Good360 saw over seven million items donated to over 1,300 charities and schools in need across Australia through the floods and impact of COVID. BIG WF21 online VOC NPS59F21 eCom sales growth 60.5%Pick up locations176Direct to boot78Average weekly digital traffic4.2MScaling up the digital experience12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATION33WOOLWORTHS GROUP ANNUAL REPORT 2021Trading PerformanceBIG W’s continued focus on its purpose of making a real difference for families has had a positive impact on customer metrics with Store-controllable VOC at 83%, an improvement of six points compared to the prior year. VOC NPS (Store and Online) increased four points on the prior year to 62 and softened one point from Q3. Notable improvements in VOC include Stock Availability, Ease of Locating Products and Correct Price Ticketing. BIG W achieved record annual sales of $4.6 billion in F21, up 11.6% on the prior year, with comparable sales increasing by 13.0%. All major categories experienced strong annual growth. Q4 total sales declined 10.4% (comparable: -9.4%) with trade impacted by lockdowns across Victoria and NSW in late Q4, and the cycling of the peak COVID demand in the prior year. Two-year average comparable sales growth in Q4 was 10.6%, supported by a strong customer plan and a successful Toy Mania sale event.  BIG W’s digital acceleration continued in Q4 with eCommerce sales growth of 4.6% and penetration reaching a record 9.9%, up from 8.4% in the prior year. In Q4, BIG W X remained focused on creating more connected and convenient customer experiences by launching a new BIG W website, F21  HighlightsEBIT ($M)$172 344.9% from F20Commitment to building a sustainable future for familiesPrioritising our Planet goal and responding to customer shopping patterns, BIG W transitioned from print to exclusively digital catalogues (outside of the much loved Toy Mania catalogue), saving at least 8,000 tonnes of paper in F21.Sales ($M)$4,583 11.6% from F20$ MILLIONF21 (52 WEEKS)F20 (52 WEEKS)CHANGESales 4,5834,10611.6%EBITDA34820767.6%Depreciation and amortisation(176)(168)4.2%EBIT17239344.9%Gross margin (%)33.631.8180 bpsCODB (%)29.930.9(100) bpsEBIT to sales (%)3.70.9280 bpsSales per square metre ($) 4,5173,96214.0%Funds employed 1,19494726.1%ROFE (%)16.53.612.9 ptsPlastic removed (tonnes) 13.1–n.m.Scope 1 & 2 carbon emissions (tonnes)115,882126,764(8.6)%1 Annualised calculated values for each reporting period based on virgin plastic weight removed per unit times annualised sales volumes.BIG WF21 was a strong year for BIG W that saw improved customer scores and sales growth as it continued to live its purpose of making a real difference for families. 32evolving the online layby solution, as well as rolling out contactless Direct to boot to a further four locations, bringing total locations to 76.  BIG W closed three stores during the year as part of its ongoing property network review, with total store numbers now at 176. Sales per square metre increased 14.0% due to strong sales growth and lower average space than the prior year. As previously announced, the Monarto DC closed in Q4, with the transition to a new third-party DC network in Perth and Melbourne in place from Q3. Gross profit (%) improved 180 bps in F21, with stronger margin expansion in H2 from continuing momentum in full price Apparel sales, coupled with H2 category mix changes due to cycling elevated sales of lower margin COVID-impacted categories, including Leisure and Toys and Home Essentials last year. CODB (%) reduced by 100 bps due to better fixed cost leverage, partly offset by the annualisation of costs associated with a new enterprise agreement, higher supply chain costs driven by the transition of Monarto DC to a third-party logistics provider, higher costs to support digital sales acceleration and investment in building digital and data analytics, and insight capability across teams.  BIG W’s EBIT increased 344.9% to $172 million, and an EBIT margin of 3.7%, up from 0.9% in the prior year.  Closing inventory was higher than the prior year due to higher inventory to support increased sales volumes, as well as normalising from COVID surge buying and stock availability challenges impacting last year. Average inventory days declined on the prior year due to sales momentum and good stock management. Higher closing inventory and capital investments resulted in higher funds employed at the end of the period. Despite this, ROFE improved to 16.5%, up from 3.6% in F20, due to the material EBIT increase compared to the prior year.BIG W continued to show real care for our communities through continuing its Free Books for Kids initiative distributing over 4.8 million free books to families. BIG W is committed to Woolworths Group’s 2025 Sustainability Plan and has made progress in a number of areas during the year, including the activation of ethical partnerships through the whole value chain such as Action Collaboration Transformation and Better Cotton Initiative. We recognise that reducing plastics is important to our customers and whilst pleased with our start, there is a lot more to do in the coming year.Making a real difference for families BIG W continued to focus on its purpose of “making a real difference for families” throughout F21. Through the challenges of COVID, the BIG W team continued to provide an essential service, while their financial, physical and mental wellbeing was supported. In the community, BIG W’s partnership with Good360 saw over seven million items donated to over 1,300 charities and schools in need across Australia through the floods and impact of COVID. BIG WF21 online VOC NPS59F21 eCom sales growth 60.5%Pick up locations176Direct to boot78Average weekly digital traffic4.2MScaling up the digital experience12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATION33WOOLWORTHS GROUP ANNUAL REPORT 2021Endeavour DrinksEndeavour Group separationOn 18 June 2021, Woolworths Group obtained shareholder approval for the separation of Endeavour Group which resulted in two of the Group’s separate major business lines, Endeavour Drinks and Hotels, being classified as discontinued operations. The Group classified the respective assets and liabilities of Endeavour Group as held for distribution and have presented these amounts at carrying value and separately from other assets and liabilities in the balance sheet as at 27 June 2021.Trading performanceEndeavour Drinks’ total sales for the year were $10.2 billion, up 9.6% on the prior year. Sales growth was driven by the shift to in-home consumption and ongoing premiumisation trends. H2 sales decreased by 0.4%, with Q4 sales declining by 7% after cycling 23.2% growth in Q4 F20.BWS and Dan Murphy’s continued to improve customer metrics. Dan Murphy’s VOC ended the year at 79, up three points on the prior year and BWS VOC was 71, up one point on the prior year. eCommerce sales increased 34.7% in F21, with eCommerce penetration now 8.4% of sales (F20: 6.9%). Penetration has remained high even in periods when lockdowns and on-premise restrictions have eased.Endeavour Drinks’ retail store network increased to 1,643, with 33 net new stores added during F21. At the end of the year, the fleet consisted of 251 Dan Murphy’s stores and 1,392 BWS stores. Sales per square metre increased 7.2% reflecting strong sales growth ahead of an increase in average space. Gross margin (%) increased 109 bps in F21 mainly due to lower promotional activity and was supported by premiumisation and product mix shifts. CODB (%) was 17.6%, 64 bps higher than the prior year. The higher sales provided fixed cost leverage, which partially offset increases in team member costs, COVID costs and investments in technology and EndeavourX.EBIT increased 17.7% to $669 million in F21, and H2 EBIT increased 8.3%. Endeavour Drinks$ MILLIONF21 (52 WEEKS)F20 (52 WEEKS)CHANGESales 10,1679,2759.6%EBITDA96082616.3%Depreciation and amortisation(291)(257)13.4%EBIT66956917.7%Gross margin (%)24.223.1109 bpsCODB (%)17.617.064 bpsEBIT to sales (%)6.66.145 bpsSales per square metre ($) 20,98919,5797.2%Funds employed 3,8043,5925.9%ROFE (%)17.915.1283 bpsDiscontinued operation – Endeavour Group34Trading PerformanceIn F21, total sales increased by 7.3% to $1,417 million with EBIT increasing by 51.7% to $261 million. In H2, sales increased by 87.1% cycling a period in the prior year when most hotels were closed. EBIT in H2 increased to $139 million following a loss of $52 million in the prior year. The most significant impact of COVID lockdowns and restrictions was in the key state of Victoria where operations were somewhat impacted throughout the financial year. Hotels re-entered lockdown in early July 2020 and reopened in early November with capacity limits and trading restrictions in place. There were further short-term snap lockdowns in both February and June.  In F21, five hotels were acquired, taking the total network of hotels to 339 (including five managed clubs) and 26 hotels were refurbished, including significant redevelopments of two hotels.Endeavour Group costsEndeavour Group incurred Group costs of $31 million in F21 compared to $7 million in the prior year. The costs reflect the ongoing costs of establishing Endeavour Group as a stand-alone business.  Hotels$ MILLIONF21 (52 WEEKS)F20 (52 WEEKS)CHANGESales 1,4171,3207.3%EBITDA 49940522.8%Depreciation and amortisation(238)(233)1.7%EBIT 26117251.7%Gross margin (%)85.083.0206 bpsCODB (%)66.670.0(333) bpsEBIT to sales (%)18.413.0538 bpsFunds employed 3,8654,065(4.9)%ROFE (%)6.74.2251 bpsHotels12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATION35WOOLWORTHS GROUP ANNUAL REPORT 2021Endeavour DrinksEndeavour Group separationOn 18 June 2021, Woolworths Group obtained shareholder approval for the separation of Endeavour Group which resulted in two of the Group’s separate major business lines, Endeavour Drinks and Hotels, being classified as discontinued operations. The Group classified the respective assets and liabilities of Endeavour Group as held for distribution and have presented these amounts at carrying value and separately from other assets and liabilities in the balance sheet as at 27 June 2021.Trading performanceEndeavour Drinks’ total sales for the year were $10.2 billion, up 9.6% on the prior year. Sales growth was driven by the shift to in-home consumption and ongoing premiumisation trends. H2 sales decreased by 0.4%, with Q4 sales declining by 7% after cycling 23.2% growth in Q4 F20.BWS and Dan Murphy’s continued to improve customer metrics. Dan Murphy’s VOC ended the year at 79, up three points on the prior year and BWS VOC was 71, up one point on the prior year. eCommerce sales increased 34.7% in F21, with eCommerce penetration now 8.4% of sales (F20: 6.9%). Penetration has remained high even in periods when lockdowns and on-premise restrictions have eased.Endeavour Drinks’ retail store network increased to 1,643, with 33 net new stores added during F21. At the end of the year, the fleet consisted of 251 Dan Murphy’s stores and 1,392 BWS stores. Sales per square metre increased 7.2% reflecting strong sales growth ahead of an increase in average space. Gross margin (%) increased 109 bps in F21 mainly due to lower promotional activity and was supported by premiumisation and product mix shifts. CODB (%) was 17.6%, 64 bps higher than the prior year. The higher sales provided fixed cost leverage, which partially offset increases in team member costs, COVID costs and investments in technology and EndeavourX.EBIT increased 17.7% to $669 million in F21, and H2 EBIT increased 8.3%. Endeavour Drinks$ MILLIONF21 (52 WEEKS)F20 (52 WEEKS)CHANGESales 10,1679,2759.6%EBITDA96082616.3%Depreciation and amortisation(291)(257)13.4%EBIT66956917.7%Gross margin (%)24.223.1109 bpsCODB (%)17.617.064 bpsEBIT to sales (%)6.66.145 bpsSales per square metre ($) 20,98919,5797.2%Funds employed 3,8043,5925.9%ROFE (%)17.915.1283 bpsDiscontinued operation – Endeavour Group34Trading PerformanceIn F21, total sales increased by 7.3% to $1,417 million with EBIT increasing by 51.7% to $261 million. In H2, sales increased by 87.1% cycling a period in the prior year when most hotels were closed. EBIT in H2 increased to $139 million following a loss of $52 million in the prior year. The most significant impact of COVID lockdowns and restrictions was in the key state of Victoria where operations were somewhat impacted throughout the financial year. Hotels re-entered lockdown in early July 2020 and reopened in early November with capacity limits and trading restrictions in place. There were further short-term snap lockdowns in both February and June.  In F21, five hotels were acquired, taking the total network of hotels to 339 (including five managed clubs) and 26 hotels were refurbished, including significant redevelopments of two hotels.Endeavour Group costsEndeavour Group incurred Group costs of $31 million in F21 compared to $7 million in the prior year. The costs reflect the ongoing costs of establishing Endeavour Group as a stand-alone business.  Hotels$ MILLIONF21 (52 WEEKS)F20 (52 WEEKS)CHANGESales 1,4171,3207.3%EBITDA 49940522.8%Depreciation and amortisation(238)(233)1.7%EBIT 26117251.7%Gross margin (%)85.083.0206 bpsCODB (%)66.670.0(333) bpsEBIT to sales (%)18.413.0538 bpsFunds employed 3,8654,065(4.9)%ROFE (%)6.74.2251 bpsHotels12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATION35WOOLWORTHS GROUP ANNUAL REPORT 2021Our Material RisksMATERIAL RISKSWe operate in a fast-paced and ever-changing environment, and that has never been more evident than in the previous 12 months. Our businesses, both domestic and international, continue to face both opportunities and threats that could materially impact our operations. Woolworths Group is made up of a portfolio of some of Australia and New Zealand’s most trusted retail brands and growth platforms. Wherever we operate, we are led by our Purpose, Core Values and Ways-of-Working to create better experiences together for a better tomorrow.Our food and everyday needs ecosystem is focused on delivering on the needs of our connected customers and leveraging our unique assets, brands and capabilities. To be confident we will achieve our purpose and execute our strategy, we need to manage risk (both internal and external) effectively across the Group to protect the value of our assets today, but also to enable the Group to deliver growth for tomorrow. The Group acknowledges that the COVID-19 pandemic is a contributory and/or causal factor to risks relating to, amongst others, lockdowns and trading impacts, customer and team member safety, mental health, economic conditions, consumer sentiment, and multiple operational and supply chain impacts. We are proud of our response to the pandemic and our ability to keep our team and customers safe while maintaining supply. However, we continue to be prepared for the rapidly evolving nature of the virus and emergence of new variants that make impacts difficult to predict and respond to. Despite this challenging environment, we successfully completed the separation of Endeavour Group as well as the formation of our retail, international and wholesale red meat business, Greenstock. Looking towards the future in this highly competitive and dynamic retail and online market, we also recognise the occurrence of continued market disruption and strategy execution risks.  Our recently refreshed Risk Appetite Statement, as agreed with our Board, captures the types and amount of risk we are willing to accept in pursuit of value creation and guides how we manage and control risks.The Board has demonstrated its commitment to Risk Management, with the formation of a new Risk Committee and the appointment of a Chief Risk Officer to the Woolworths Group Executive Committee, reporting to the CEO and Committee chair. Woolworths Group has commenced on a risk management journey to achieve a future objective where “Woolworths Group is confident that we are operating effectively to the Woolworths Group Risk Appetite”.Our material risks are considered and where appropriate, adjusted through regular meetings with senior management followed by review and oversight by the Board. We evaluate our risks in line with changes to our environment and may also identify additional and emerging risks that could adversely affect the Group. Further information in relation to risk management can be found throughout the Annual Report and in the Corporate Governance Statement which is available on the Woolworths Group website. The material risks faced by Woolworths Group, that may impact on our ability to achieve our key strategic priorities, are outlined on pages 38–41. RisksFinancialPeople and cultureStrategy andtransformationand complianceSustainability, legalexcellenceOperational36Risk management oversightThe diagram below sets out an overview of risk governance and management at Woolworths Group together with key responsibilities of the Board and Board committees, the Group Executive Committee, Group Risk, Internal Audit and the businesses. It is based on the three lines of accountability model, which is how risk is managed at Woolworths Group.The Board of Directors(with input from Audit and Finance Committee, People Committee,  Risk Committee, Sustainability Committee, Nomination Committee)Sets and communicates expectations for risk managementApproves Woolworths Group Ways-of-Working, Core Values and Code of Conduct to underpin the desired cultureSatisfies itself that Woolworths Group has in place an appropriate risk management frameworkProvides oversight of risk exposures and risk-taking Monitors the effectiveness of Woolworths Group governance practicesGroup Executive CommitteeSets business  direction and resolves significant enterprise risk issuesProvides recommendations to the Board on risk policy, frameworks and risk practicesManages risks  and reporting on  risk matters Implements effective risk management in the business unitsRISK LEADERSHIPTHREE LINES OF ACCOUNTABILITY1ST LINE OF  ACCOUNTABILITYBusinessOwns and  manages riskBusinessesGroup Services2ND LINE OF  ACCOUNTABILITYOversight functions Oversees and sets frameworks and standards. Monitors risk and provides confidenceGroup RiskGroup Culture & PeopleGroup Safety, Health  & Wellbeing Group Legal & ComplianceGroup Finance3RD LINE OF  ACCOUNTABILITYIndependent assurance Provides independent assurance of frameworks and controls effectivenessInternal AuditExternal Audit12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATION37WOOLWORTHS GROUP ANNUAL REPORT 2021Our Material RisksMATERIAL RISKSWe operate in a fast-paced and ever-changing environment, and that has never been more evident than in the previous 12 months. Our businesses, both domestic and international, continue to face both opportunities and threats that could materially impact our operations. Woolworths Group is made up of a portfolio of some of Australia and New Zealand’s most trusted retail brands and growth platforms. Wherever we operate, we are led by our Purpose, Core Values and Ways-of-Working to create better experiences together for a better tomorrow.Our food and everyday needs ecosystem is focused on delivering on the needs of our connected customers and leveraging our unique assets, brands and capabilities. To be confident we will achieve our purpose and execute our strategy, we need to manage risk (both internal and external) effectively across the Group to protect the value of our assets today, but also to enable the Group to deliver growth for tomorrow. The Group acknowledges that the COVID-19 pandemic is a contributory and/or causal factor to risks relating to, amongst others, lockdowns and trading impacts, customer and team member safety, mental health, economic conditions, consumer sentiment, and multiple operational and supply chain impacts. We are proud of our response to the pandemic and our ability to keep our team and customers safe while maintaining supply. However, we continue to be prepared for the rapidly evolving nature of the virus and emergence of new variants that make impacts difficult to predict and respond to. Despite this challenging environment, we successfully completed the separation of Endeavour Group as well as the formation of our retail, international and wholesale red meat business, Greenstock. Looking towards the future in this highly competitive and dynamic retail and online market, we also recognise the occurrence of continued market disruption and strategy execution risks.  Our recently refreshed Risk Appetite Statement, as agreed with our Board, captures the types and amount of risk we are willing to accept in pursuit of value creation and guides how we manage and control risks.The Board has demonstrated its commitment to Risk Management, with the formation of a new Risk Committee and the appointment of a Chief Risk Officer to the Woolworths Group Executive Committee, reporting to the CEO and Committee chair. Woolworths Group has commenced on a risk management journey to achieve a future objective where “Woolworths Group is confident that we are operating effectively to the Woolworths Group Risk Appetite”.Our material risks are considered and where appropriate, adjusted through regular meetings with senior management followed by review and oversight by the Board. We evaluate our risks in line with changes to our environment and may also identify additional and emerging risks that could adversely affect the Group. Further information in relation to risk management can be found throughout the Annual Report and in the Corporate Governance Statement which is available on the Woolworths Group website. The material risks faced by Woolworths Group, that may impact on our ability to achieve our key strategic priorities, are outlined on pages 38–41. RisksFinancialPeople and cultureStrategy andtransformationand complianceSustainability, legalexcellenceOperational36Risk management oversightThe diagram below sets out an overview of risk governance and management at Woolworths Group together with key responsibilities of the Board and Board committees, the Group Executive Committee, Group Risk, Internal Audit and the businesses. It is based on the three lines of accountability model, which is how risk is managed at Woolworths Group.The Board of Directors(with input from Audit and Finance Committee, People Committee,  Risk Committee, Sustainability Committee, Nomination Committee)Sets and communicates expectations for risk managementApproves Woolworths Group Ways-of-Working, Core Values and Code of Conduct to underpin the desired cultureSatisfies itself that Woolworths Group has in place an appropriate risk management frameworkProvides oversight of risk exposures and risk-taking Monitors the effectiveness of Woolworths Group governance practicesGroup Executive CommitteeSets business  direction and resolves significant enterprise risk issuesProvides recommendations to the Board on risk policy, frameworks and risk practicesManages risks  and reporting on  risk matters Implements effective risk management in the business unitsRISK LEADERSHIPTHREE LINES OF ACCOUNTABILITY1ST LINE OF  ACCOUNTABILITYBusinessOwns and  manages riskBusinessesGroup Services2ND LINE OF  ACCOUNTABILITYOversight functions Oversees and sets frameworks and standards. Monitors risk and provides confidenceGroup RiskGroup Culture & PeopleGroup Safety, Health  & Wellbeing Group Legal & ComplianceGroup Finance3RD LINE OF  ACCOUNTABILITYIndependent assurance Provides independent assurance of frameworks and controls effectivenessInternal AuditExternal Audit12345PERFORMANCEHIGHLIGHTSBUSINESS REVIEWDIRECTORS' REPORTFINANCIAL REPORTOTHER INFORMATION37WOOLWORTHS GROUP ANNUAL REPORT 202138

MATERIAL BUSINESS RISKS

RISK

MITIGATING ACTIVITIES

RISK

MITIGATING ACTIVITIES

Pandemic 
(currently focused on 
COVID-19)
Failure to respond to pandemic events 
(large-scale outbreaks of infectious 
diseases) which can greatly impact 
health and wellbeing over a wide 
geographic area. Such events can cause 
significant economic, operational and 
social disruption which can adversely 
affect our businesses.

Safety, Health & 
Wellbeing 
The safety, health and wellbeing of our 
teams, partners, customers, and those 
we interact with in the community, is of 
paramount importance to Woolworths 
Group. An inability to control our 
material safety, health and wellbeing 
risks may result in a serious injury/
illness, or fatality/ies, as well as give rise 
to significant claims, regulatory impact, 
and reputational damage. We also 
recognise the emergence of work-related 
psychosocial and mental health risks 
and are committed to minimising any 
potential impact to our team.

Product & Food Safety 
The safety of our customers is 
paramount. Unsafe products may 
potentially result in injury, harm or 
illness to our customers as well as 
regulatory impacts and significant 
reputational damage. 

•  Our Board, Risk and People Committees and Group Executive Committee monitor 

our response to the COVID-19 pandemic.

•  The Group has a dedicated task force that is activated as required to focus on 

managing the COVID-19 risk, response to federal government directives, various 
state lockdowns, trading impacts and the health and wellbeing of our customers 
and team members. 

•  The Group maintains a suite of policies, frameworks and standards that support and 

enable our Business Resilience and Crisis response. These include Business Continuity, 
Emergency Management, Crisis Management Incident Response plans and teams that 
are periodically updated to reflect changes in circumstances, government directives 
and our learnings since the start of the pandemic in early 2020. 

•  Our priority remains the continued support of our customers and team members 
by prioritising health, safety, and wellbeing. Key COVID-19 risk measures include 
support for team member mental wellbeing, QR code check-ins, social distancing, 
mask wearing, store hygiene and cleaning and incident response protocols which 
are adjusted to meet changing local and national obligations and circumstances.

• 

Supply chain impacts, notably relating to vulnerable customers and provision of 
essential/basic consumer needs remains a key focus, with investment in improved 
demand forecasting and availability management, particularly following state 
or local lockdowns.

•  Our Board, People Committee and Group Executive Committee monitor 

safety, health and wellbeing performance and have oversight for the overall 
management approach. 

•  Through the application of a comprehensive set of controls, we aspire to 

proactively manage our material safety, health and wellbeing risks, periodically 
testing the application of these controls to meet, as a minimum, our legislative 
requirements. In addition, we also deploy a series of agile response mechanisms 
with the aim of minimising the impacts of a failure.

•  We are also committed to understanding and mitigating psychosocial 
work-related mental health risk factors, which could unduly impact 
a team member’s mental health.

•  Our Board, Sustainability Committee and Group Executive Committee monitor product 
and food safety performance and have oversight for the overall management approach. 

•  We have a well-established product safety and new product development 
framework with dedicated and experienced teams across our businesses 
to support our commitment to our customers to deliver safe products.

•  We are committed to driving consistent quality across our suppliers including 

Own Brand products, with independent assurance and quality checks.  

•  We have clear procedures and processes for management of products across our 

supply chain from design, manufacturing, transport and storage to customer purchase. 
Supporting these controls are effective processes for the management of complaints 
and issues to allow appropriate withdrawal and recall of products when required.

Technology Availability 
& Cyber Security 
The increasing interconnectedness and 
complexity of our technology environment, 
the increasing threat from cyber security 
as well as the changing regulatory and 
business landscape, means we need to 
continue to evolve to prevent material 
impacts of any breaches or disruption to 
critical business operations resulting from 
loss of technology systems or services. 
Such events may cause significant 
business and reputational damage, 
adverse regulatory action (including legal 
proceedings) and financial impacts.

•  We are actively working to reduce these risks by continuing to enhance our 

cyber control environment, on the back of the foundations implemented over 
the last few years which is overseen by our Board, Risk Committee and Group 
Executive Committee.

•  With the aim of managing these risks, focus is on our IT processes, and the 

establishment of key metrics for monitoring operational excellence.

•  We are improving the monitoring of our controls to give us the assurance that 

technology and cyber security risks are being managed effectively.

•  We monitor, assess, and enhance our information security infrastructure and 

applications, with full incident response programs.

•  We are working to improve our resilience programs to incorporate the monitoring 

of third parties’ general technology and cyber security controls.

•  Our governance frameworks continue to adapt to the ever-changing threat 

landscape and regulatory requirements with a focus on technology enablement, 
system availability and information security.

Data Management 

& Privacy

Data is one of our most important 

organisational assets, supporting 

investment, strategic and operational 

decision-making, as well as meeting 

customer needs and expectations. 

A failure to maintain the quality 

of our data could result in adverse 

commercial outcomes.

Misuse of customers' data, or 

use misaligned with community 

expectations, has the potential to result 

in loss of data, unauthorised access 

and/or disclosure of individuals data, 

significant brand and reputational 

damage, adverse regulatory outcomes 

(including fines and/or legal 

proceedings), financial impacts, loss of 

partnerships, loss of customer trust and 

customer attrition.

Sustainability 

Our customers want positive change, and 

they are counting on us to make it happen. 

Our Purpose, Core Values and Ways-of-

Working are core to how we conduct our 

business as we aim to deliver sustainable 

shareholder value with long-term growth. 

If we fail to act as a responsible business 

whether that is through how we 

manage our environmental impacts, 

our contribution to a healthier and more 

inclusive society or how we source our 

products, we may lose the trust of our team 

and customers impacting shareholder 

value and long-term growth.

Pay & Entitlements

Failure to pay team members in line 

with entitlements results in loss of trust, 

reputation damage and additional costs.

We continue to focus on rectifying the 

historical issues, while putting in place 

processes and controls that prevent it 

from occurring again.

Security & Resilience

As a business that is deemed an essential 

service, we seek to maintain continuity 

of products and services to our 

communities. Interruptions can impact 

our operations, customers and team 

members and may cause reputation 

damage as well as financial impacts.

•  We are prioritising key initiatives to continue to uplift our privacy framework and 

data management capabilities across the Group.

•  During F21, we established new management and governance forums to build upon 

and connect key privacy and data management capabilities.

•  These forums will help set and support privacy and data management strategy, 

priorities and direction for the Group as well as developing and enhancing the 

operating model and controls. 

•  Our governance focus over data management and privacy is on the protection and 

appropriate use of our customer, teams and organisational data. Our governance 

frameworks are maturing and changing to support our data strategy, and to reflect 

the evolving regulatory requirements and community expectations.

•  Our experienced teams monitor, assess and enhance our information security 

position to allow us to protect and respond appropriately, while capturing 

valuable learnings.

•  The Board, Risk Committee and Group Executive Committee have oversight of this risk.

•  Our Group Sustainability Plan 2025 is organised into three pillars of People, Planet 

and Product. Each focus area has detailed commitments that we are focused on 

achieving by 2025 which we regularly monitor and report to the Sustainability 

Committee and the market. 

•  Our Group Sustainability Plan also outlines our Responsible Sourcing Program in detail. 

Our approach to addressing human rights related risks across our supply chain with 

due diligence requirements for specific suppliers, plus self-assessments, audits and 

contractual specifications. 

•  We assess climate change risks annually and have already taken a number of measures 

to improve our operational resilience.

• 

Further details on the steps we have taken to identify, manage and mitigate 

our sustainability risks can be found in our Sustainability Report and Modern 

•  The Board, Sustainability Committee and Group Executive Committee has oversight 

Slavery Statement.

of this risk.

•  Our Board, People Committee and Group Executive Committee have oversight of our 

management approach and we have continued to make significant progress towards 

remediating our historical salaried team member payroll issues.

•  We launched a structured end-to-end Program with the aim of building best in class 

pay processes across Woolworths Group.

•  We have refreshed our Operational Compliance Plan to review all obligations under 

each of our industrial instruments and how they are configured in our pay systems.

•  We have progressed both the short-term priority of completing remediation 

payments to the team as well as the longer-term systemic changes to our 

pay processes from store through to payment that will achieve a sustainable 

improvement in our control environment.

•  Our updated suite of Business Resilience policies, frameworks and standards with 

oversight from our Risk Committee, has a focus on how we prevent, prepare and 

respond to, and recover from key events across our whole organisation.

•  We monitor and respond to key events that threaten the continuity of our operations, 

whether these be natural disasters, extreme weather conditions, cyber-attacks, 

technology failures, acts of terrorism or pandemic risks.

•  Our Crisis Management Team and Emergency Management Teams have responded 

to a number of events during F21 which have demonstrated our agility, our ability 

to test and respond, and our drive to continue to learn and improve our execution.

•  Our Board, Risk Committee and Group Executive Committee has oversight of this risk.

39

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C

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O

N

 
 
 
 
 
 
 
 
38

MATERIAL BUSINESS RISKS

RISK

Pandemic 

(currently focused on 

COVID-19)

Failure to respond to pandemic events 

(large-scale outbreaks of infectious 

diseases) which can greatly impact 

health and wellbeing over a wide 

geographic area. Such events can cause 

significant economic, operational and 

social disruption which can adversely 

affect our businesses.

Safety, Health & 

Wellbeing 

The safety, health and wellbeing of our 

teams, partners, customers, and those 

we interact with in the community, is of 

paramount importance to Woolworths 

Group. An inability to control our 

material safety, health and wellbeing 

risks may result in a serious injury/

illness, or fatality/ies, as well as give rise 

to significant claims, regulatory impact, 

and reputational damage. We also 

recognise the emergence of work-related 

psychosocial and mental health risks 

and are committed to minimising any 

potential impact to our team.

Product & Food Safety 

The safety of our customers is 

paramount. Unsafe products may 

potentially result in injury, harm or 

illness to our customers as well as 

regulatory impacts and significant 

reputational damage. 

•  Our Board, Risk and People Committees and Group Executive Committee monitor 

our response to the COVID-19 pandemic.

•  The Group has a dedicated task force that is activated as required to focus on 

managing the COVID-19 risk, response to federal government directives, various 

state lockdowns, trading impacts and the health and wellbeing of our customers 

and team members. 

•  The Group maintains a suite of policies, frameworks and standards that support and 

enable our Business Resilience and Crisis response. These include Business Continuity, 

Emergency Management, Crisis Management Incident Response plans and teams that 

are periodically updated to reflect changes in circumstances, government directives 

and our learnings since the start of the pandemic in early 2020. 

•  Our priority remains the continued support of our customers and team members 

by prioritising health, safety, and wellbeing. Key COVID-19 risk measures include 

support for team member mental wellbeing, QR code check-ins, social distancing, 

mask wearing, store hygiene and cleaning and incident response protocols which 

are adjusted to meet changing local and national obligations and circumstances.

• 

Supply chain impacts, notably relating to vulnerable customers and provision of 

essential/basic consumer needs remains a key focus, with investment in improved 

demand forecasting and availability management, particularly following state 

or local lockdowns.

•  Our Board, People Committee and Group Executive Committee monitor 

safety, health and wellbeing performance and have oversight for the overall 

management approach. 

•  Through the application of a comprehensive set of controls, we aspire to 

proactively manage our material safety, health and wellbeing risks, periodically 

testing the application of these controls to meet, as a minimum, our legislative 

requirements. In addition, we also deploy a series of agile response mechanisms 

with the aim of minimising the impacts of a failure.

•  We are also committed to understanding and mitigating psychosocial 

work-related mental health risk factors, which could unduly impact 

a team member’s mental health.

•  Our Board, Sustainability Committee and Group Executive Committee monitor product 

and food safety performance and have oversight for the overall management approach. 

•  We have a well-established product safety and new product development 

framework with dedicated and experienced teams across our businesses 

to support our commitment to our customers to deliver safe products.

•  We are committed to driving consistent quality across our suppliers including 

Own Brand products, with independent assurance and quality checks.  

•  We have clear procedures and processes for management of products across our 

supply chain from design, manufacturing, transport and storage to customer purchase. 

Supporting these controls are effective processes for the management of complaints 

and issues to allow appropriate withdrawal and recall of products when required.

Technology Availability 

& Cyber Security 

The increasing interconnectedness and 

complexity of our technology environment, 

the increasing threat from cyber security 

as well as the changing regulatory and 

business landscape, means we need to 

continue to evolve to prevent material 

impacts of any breaches or disruption to 

critical business operations resulting from 

loss of technology systems or services. 

Such events may cause significant 

business and reputational damage, 

adverse regulatory action (including legal 

proceedings) and financial impacts.

•  We are actively working to reduce these risks by continuing to enhance our 

cyber control environment, on the back of the foundations implemented over 

the last few years which is overseen by our Board, Risk Committee and Group 

Executive Committee.

•  With the aim of managing these risks, focus is on our IT processes, and the 

establishment of key metrics for monitoring operational excellence.

•  We are improving the monitoring of our controls to give us the assurance that 

technology and cyber security risks are being managed effectively.

•  We monitor, assess, and enhance our information security infrastructure and 

applications, with full incident response programs.

•  We are working to improve our resilience programs to incorporate the monitoring 

of third parties’ general technology and cyber security controls.

•  Our governance frameworks continue to adapt to the ever-changing threat 

landscape and regulatory requirements with a focus on technology enablement, 

system availability and information security.

MITIGATING ACTIVITIES

RISK

MITIGATING ACTIVITIES

Data Management 
& Privacy
Data is one of our most important 
organisational assets, supporting 
investment, strategic and operational 
decision-making, as well as meeting 
customer needs and expectations. 
A failure to maintain the quality 
of our data could result in adverse 
commercial outcomes.

Misuse of customers' data, or 
use misaligned with community 
expectations, has the potential to result 
in loss of data, unauthorised access 
and/or disclosure of individuals data, 
significant brand and reputational 
damage, adverse regulatory outcomes 
(including fines and/or legal 
proceedings), financial impacts, loss of 
partnerships, loss of customer trust and 
customer attrition.

Sustainability 
Our customers want positive change, and 
they are counting on us to make it happen. 
Our Purpose, Core Values and Ways-of-
Working are core to how we conduct our 
business as we aim to deliver sustainable 
shareholder value with long-term growth. 

If we fail to act as a responsible business 
whether that is through how we 
manage our environmental impacts, 
our contribution to a healthier and more 
inclusive society or how we source our 
products, we may lose the trust of our team 
and customers impacting shareholder 
value and long-term growth.

Pay & Entitlements
Failure to pay team members in line 
with entitlements results in loss of trust, 
reputation damage and additional costs.

We continue to focus on rectifying the 
historical issues, while putting in place 
processes and controls that prevent it 
from occurring again.

Security & Resilience
As a business that is deemed an essential 
service, we seek to maintain continuity 
of products and services to our 
communities. Interruptions can impact 
our operations, customers and team 
members and may cause reputation 
damage as well as financial impacts.

•  We are prioritising key initiatives to continue to uplift our privacy framework and 

data management capabilities across the Group.

•  During F21, we established new management and governance forums to build upon 

and connect key privacy and data management capabilities.

•  These forums will help set and support privacy and data management strategy, 

priorities and direction for the Group as well as developing and enhancing the 
operating model and controls. 

•  Our governance focus over data management and privacy is on the protection and 

appropriate use of our customer, teams and organisational data. Our governance 
frameworks are maturing and changing to support our data strategy, and to reflect 
the evolving regulatory requirements and community expectations.

•  Our experienced teams monitor, assess and enhance our information security 
position to allow us to protect and respond appropriately, while capturing 
valuable learnings.

•  The Board, Risk Committee and Group Executive Committee have oversight of this risk.

•  Our Group Sustainability Plan 2025 is organised into three pillars of People, Planet 
and Product. Each focus area has detailed commitments that we are focused on 
achieving by 2025 which we regularly monitor and report to the Sustainability 
Committee and the market. 

•  Our Group Sustainability Plan also outlines our Responsible Sourcing Program in detail. 
Our approach to addressing human rights related risks across our supply chain with 
due diligence requirements for specific suppliers, plus self-assessments, audits and 
contractual specifications. 

•  We assess climate change risks annually and have already taken a number of measures 

to improve our operational resilience.

• 

Further details on the steps we have taken to identify, manage and mitigate 
our sustainability risks can be found in our Sustainability Report and Modern 
Slavery Statement.

•  The Board, Sustainability Committee and Group Executive Committee has oversight 

of this risk.

•  Our Board, People Committee and Group Executive Committee have oversight of our 
management approach and we have continued to make significant progress towards 
remediating our historical salaried team member payroll issues.

•  We launched a structured end-to-end Program with the aim of building best in class 

pay processes across Woolworths Group.

•  We have refreshed our Operational Compliance Plan to review all obligations under 

each of our industrial instruments and how they are configured in our pay systems.

•  We have progressed both the short-term priority of completing remediation 
payments to the team as well as the longer-term systemic changes to our 
pay processes from store through to payment that will achieve a sustainable 
improvement in our control environment.

•  Our updated suite of Business Resilience policies, frameworks and standards with 

oversight from our Risk Committee, has a focus on how we prevent, prepare and 
respond to, and recover from key events across our whole organisation.

•  We monitor and respond to key events that threaten the continuity of our operations, 
whether these be natural disasters, extreme weather conditions, cyber-attacks, 
technology failures, acts of terrorism or pandemic risks.

•  Our Crisis Management Team and Emergency Management Teams have responded 
to a number of events during F21 which have demonstrated our agility, our ability 
to test and respond, and our drive to continue to learn and improve our execution.

•  Our Board, Risk Committee and Group Executive Committee has oversight of this risk.

39

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I

 
 
 
 
 
 
 
 
40

MATERIAL BUSINESS RISKS

RISK

MITIGATING ACTIVITIES

MITIGATING ACTIVITIES

Legal, Regulatory and 
Governance
Our business is subject to a wide range 
of legal and regulatory requirements 
covering topics such as competition, 
employment, health and safety, 
transport safety, product safety, privacy, 
anti-bribery and corruption, anti-money 
laundering, and liquor and gaming. 

From time to time, despite our best 
endeavours, we may be the focus 
of, or a party to, investigations, 
legal claims or litigation which may 
adversely impact our reputation 
and have financial impacts. 

Customer and Brand 
Our customers expect a connected, 
personalised and convenient shopping 
experience which requires our business 
model to continually evolve to meet 
these needs.

This is no more evident than in the 
digital and online area of our business, 
and we expect this to continue to 
increase into the future, meaning we 
must remain agile in responding to these 
changing customer preferences, market 
conditions and community sentiments. 
Unfavourable events may negatively 
impact our brand and reputation.  

Strategy Development 
and Execution
Our food and everyday needs ecosystem 
strategy aims to differentiate our 
business in the competitive retail 
environment.  

Our ability to execute against this 
strategy is critical to remaining 
competitive and we do this by working at 
pace, remaining agile and working end 
to end as one team.

Strategic Workforce 
Planning  
Our team members are key to our 
success. The ability to attract, retain and 
motivate team members with diverse 
skills, capabilities and background will 
help us build retailers of the future.  

•  Our Board, Board Committee and Group Executive Committee receive wide-ranging 
updates on legal, regulatory and compliance matters. The Risk Committee has 
oversight of the Compliance Framework.

•  Our Code of Conduct provides a clear statement on our Core Values including “doing 

the right thing”.

•  New starter and annual compliance training programs are required to be completed 

by all team members.

•  Our Group Compliance Framework, along with business unit-specific Operational 

Compliance Plans and our compliance and assurance programs, aim to support the 
effective operations of our business while managing our compliance obligations.

•  Our dedicated Group legal and compliance teams partner with our leadership teams 
to advise on and monitor legal, regulatory and public policy changes, legal issues and 
claims, while supporting innovative and new opportunities.

•  Woolworths Group has an ethics reporting service (Speak Up) as well as a 

whistleblowing process, and actively encourages current and former team members, 
suppliers and their families to report wrongdoing and breaches of the law. 

•  Our Board reviews and annually approves our strategies which are aligned with our 
pursuit of innovation that improves customer satisfaction, experience, convenience 
and services as well as our strong brands. 

•  Customer insights are provided to our Group Executive Committee to inform our 
approach to enhancing our customer proposition and improve our customer’s 
experience, both in store and online.

•  We regularly monitor our customer satisfaction through Voice of Customer surveys 
at an individual business level and make changes according to identified trends. Our 
senior leadership and Board receive regular customer feedback and trends and use 
this information to improve for our customers.

•  Our dedicated strategy teams, along with our marketing teams, work closely 
to monitor trends and developments both locally and globally to enhance the 
development of our responses across our brands and customer propositions.  

•  The Board and Group Executive Committee have oversight of this risk.

•  Our Board reviews and annually approves our strategies and receives regular updates 
on progress and developments. The implementation of our strategy is overseen by 
our Board, Risk Committee, Group Executive Committee and governance forums, 
including our Delivery Offices to provide oversight of the delivery of our strategy 
and key initiatives. 

•  We have key management and governance forums to review and analyse key metrics 
and trends with regards to customer buying patterns, supplier metrics, team results, 
the competitive landscape, regulatory changes, future sales propositions, promotions 
and marketing activities to monitor and adjust priorities.  

•  We have dedicated strategy teams and change management capabilities that assist 
with evaluating and mitigating the impact of continued and significant change on our 
operations and our team.

•  The successful delivery of our strategy requires a committed workforce, supported 
by a culture focused on accountability and simplicity. Our Purpose, Core Values 
and Ways-of-Working focus on caring for our team members as our organisation 
pivots to respond to our industry and organisational changes. This is overseen 
by our People Committee. 

•  We are committed to attracting and retaining a diverse workforce that reflects the 

community. We achieve this by setting clear targets on gender equity, leadership 
diversity training and Aboriginal and Torres Strait Islander employment levels 
outlined in our Sustainability Plan 2025 commitments.

•  We have a range of processes to support and manage our team members through 
their careers such as performance management, capability assessments and key 
talent management.

•  We are committed to capturing ongoing feedback from our team members across 

our organisation to drive ongoing improvement with regards to people management, 
through surveys and Speak Up programs.

•  We have embraced flexible working, which accelerated during COVID-19, to give 

our team members the best opportunity to succeed in their roles, regardless of their 
physical location. We continue to assess these new ways of operating to understand 
any challenges related to achieving our desired culture. 

•  We regularly review our supply chain resilience across our sourcing countries, 

transport channels, internal and partner facility network to confirm redundancy 

within changing external environments.

•  Our supply chain strategy and future network plans are reviewed and approved by 

our Board with a focus on providing the best outcomes for our customers as we seek 

to optimise our distribution and customer fulfilment centres, transport operations 

and last mile deliveries. Ongoing evaluation of current and future requirements are 

conducted to allow us to enhance and proactively manage our network and capacity.

•  Our resilience program is also supported by contingency plans and testing programs 

to allow quick response to fast changing environments as was seen during the year 

as COVID-19 restrictions were imposed across different states at different times.

•  We invest in technology to support safe, efficient and effective warehouse 

management and transport operations.

•  The Board, Risk Committee and Group Executive Committee has oversight of this risk. 

•  We have advanced in our commitment and focus on delivering digital and eCommerce 

solutions aligned with our customers. We have formed dedicated teams across our 

business units to develop innovative and stable solutions.

•  We invest in our technology, systems and infrastructure to provide a safe, secure and 

stable platform for our customers. This investment has also included innovative online 

fulfilment capabilities to meet the increasing demand for these services.

•  While developing these new solutions, we are committed to protecting our 

customers' data and managing new safety risks related to new delivery solutions 

such as last-mile deliveries.

•  The Board, Risk Committee and Group Executive Committee has oversight of this risk.

•  Our Responsible Sourcing, Modern Slavery and Quality Standards give clear 

guidance to our suppliers of the standards we require to support our commitment 

to source safe, quality and compliant products.  

•  We conduct periodic assessment of our suppliers, plus independent audits to give 

assurance and to drive ongoing improvement initiatives across our supplier base.

•  Our Voice of Supplier surveys and Supplier Speak Up Program provide mechanisms 

for our suppliers to respond openly (and anonymously) and their responses are 

reviewed and escalated as required.

•  The Board, Risk Committee and Group Executive Committee has oversight of this risk.

•  Our Group Treasury function is responsible for day-to-day management of 

our treasury risks, including liquidity, funding, interest rates, foreign currency, 

and counterparty risk. These risks are managed in accordance with the Board 

approved Treasury Policy and may include the use of derivatives and other risk 

management initiatives.

•  The Group’s insurance program incorporates a range of externally placed insurance 

policies and self-insured programs for specific risks. Our decision to self-insure 

depends on our ability to improve our risk profile to reduce cost, as well as the 

capacity of external insurance markets. We monitor our self-insured risks and 

have active programs to help us pre-empt and mitigate losses. 

•  Our financial targets are regularly monitored to confirm progress and to confirm 

our business is focused on pursuing opportunities and mitigating key risks. 

Our financial results have an assurance program with independent audits 

to confirm the soundness of our financial statements.

•  The Board, Audit and Finance Committee and Group Executive Committee have 

oversight of this risk.

41

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RISK

Supply Chain 

Disruptions to warehouse management 

and transport operations can impact the 

continuity of supplies to stores, resulting 

in lost sales and/or customers. 

Digital & eCommerce 

Digital and eCommerce continues to be 

a significant growth area of our business, 

and with this growth there are risks 

that can impact our ability to safely and 

securely serve our customers. 

Protecting our customers both in their 

online interactions as well as through 

home and last-mile delivery is critical 

and if not managed effectively, may 

result in safety, reputational and 

financial impacts.

Suppliers 

Our products are sourced from a wide 

range of domestic and international 

suppliers. Ineffective supplier 

management can impact our product 

proposition and result in challenges 

with product range, availability, 

price and quality. 

Financial, Treasury 

and Tax 

The management of liquidity to make 

accurate and timely payments to 

team members and suppliers, and the 

management of capital and availability 

of funding, are important requirements 

to support our business operations 

and growth.

In addition, we are exposed to adverse 

fluctuations in foreign exchange rates 

and interest rates, which could impact 

profitability.

Accidents, natural disasters and 

other events can occur which affect 

our customers, team members 

and businesses. Insurance can be 

used to protect against losses from 

such incidents.    

 
 
 
 
 
 
 
 
 
40

MATERIAL BUSINESS RISKS

RISK

MITIGATING ACTIVITIES

RISK

MITIGATING ACTIVITIES

Legal, Regulatory and 

Governance

Our business is subject to a wide range 

of legal and regulatory requirements 

covering topics such as competition, 

employment, health and safety, 

transport safety, product safety, privacy, 

anti-bribery and corruption, anti-money 

laundering, and liquor and gaming. 

From time to time, despite our best 

endeavours, we may be the focus 

of, or a party to, investigations, 

legal claims or litigation which may 

adversely impact our reputation 

and have financial impacts. 

Customer and Brand 

Our customers expect a connected, 

personalised and convenient shopping 

experience which requires our business 

model to continually evolve to meet 

these needs.

This is no more evident than in the 

digital and online area of our business, 

and we expect this to continue to 

increase into the future, meaning we 

must remain agile in responding to these 

changing customer preferences, market 

conditions and community sentiments. 

Unfavourable events may negatively 

impact our brand and reputation.  

Strategy Development 

and Execution

Our food and everyday needs ecosystem 

strategy aims to differentiate our 

business in the competitive retail 

environment.  

Our ability to execute against this 

strategy is critical to remaining 

competitive and we do this by working at 

pace, remaining agile and working end 

to end as one team.

Strategic Workforce 

Planning  

Our team members are key to our 

success. The ability to attract, retain and 

motivate team members with diverse 

skills, capabilities and background will 

help us build retailers of the future.  

•  Our Board, Board Committee and Group Executive Committee receive wide-ranging 

updates on legal, regulatory and compliance matters. The Risk Committee has 

oversight of the Compliance Framework.

•  Our Code of Conduct provides a clear statement on our Core Values including “doing 

•  New starter and annual compliance training programs are required to be completed 

the right thing”.

by all team members.

•  Our Group Compliance Framework, along with business unit-specific Operational 

Compliance Plans and our compliance and assurance programs, aim to support the 

effective operations of our business while managing our compliance obligations.

•  Our dedicated Group legal and compliance teams partner with our leadership teams 

to advise on and monitor legal, regulatory and public policy changes, legal issues and 

claims, while supporting innovative and new opportunities.

•  Woolworths Group has an ethics reporting service (Speak Up) as well as a 

whistleblowing process, and actively encourages current and former team members, 

suppliers and their families to report wrongdoing and breaches of the law. 

•  Our Board reviews and annually approves our strategies which are aligned with our 

pursuit of innovation that improves customer satisfaction, experience, convenience 

and services as well as our strong brands. 

•  Customer insights are provided to our Group Executive Committee to inform our 

approach to enhancing our customer proposition and improve our customer’s 

experience, both in store and online.

•  We regularly monitor our customer satisfaction through Voice of Customer surveys 

at an individual business level and make changes according to identified trends. Our 

senior leadership and Board receive regular customer feedback and trends and use 

this information to improve for our customers.

•  Our dedicated strategy teams, along with our marketing teams, work closely 

to monitor trends and developments both locally and globally to enhance the 

development of our responses across our brands and customer propositions.  

•  The Board and Group Executive Committee have oversight of this risk.

•  Our Board reviews and annually approves our strategies and receives regular updates 

on progress and developments. The implementation of our strategy is overseen by 

our Board, Risk Committee, Group Executive Committee and governance forums, 

including our Delivery Offices to provide oversight of the delivery of our strategy 

and key initiatives. 

•  We have key management and governance forums to review and analyse key metrics 

and trends with regards to customer buying patterns, supplier metrics, team results, 

the competitive landscape, regulatory changes, future sales propositions, promotions 

and marketing activities to monitor and adjust priorities.  

•  We have dedicated strategy teams and change management capabilities that assist 

with evaluating and mitigating the impact of continued and significant change on our 

operations and our team.

•  The successful delivery of our strategy requires a committed workforce, supported 

by a culture focused on accountability and simplicity. Our Purpose, Core Values 

and Ways-of-Working focus on caring for our team members as our organisation 

pivots to respond to our industry and organisational changes. This is overseen 

by our People Committee. 

•  We are committed to attracting and retaining a diverse workforce that reflects the 

community. We achieve this by setting clear targets on gender equity, leadership 

diversity training and Aboriginal and Torres Strait Islander employment levels 

outlined in our Sustainability Plan 2025 commitments.

•  We have a range of processes to support and manage our team members through 

their careers such as performance management, capability assessments and key 

talent management.

•  We are committed to capturing ongoing feedback from our team members across 

our organisation to drive ongoing improvement with regards to people management, 

through surveys and Speak Up programs.

•  We have embraced flexible working, which accelerated during COVID-19, to give 

our team members the best opportunity to succeed in their roles, regardless of their 

physical location. We continue to assess these new ways of operating to understand 

any challenges related to achieving our desired culture. 

Supply Chain 
Disruptions to warehouse management 
and transport operations can impact the 
continuity of supplies to stores, resulting 
in lost sales and/or customers. 

Digital & eCommerce 
Digital and eCommerce continues to be 
a significant growth area of our business, 
and with this growth there are risks 
that can impact our ability to safely and 
securely serve our customers. 

Protecting our customers both in their 
online interactions as well as through 
home and last-mile delivery is critical 
and if not managed effectively, may 
result in safety, reputational and 
financial impacts.

Suppliers 
Our products are sourced from a wide 
range of domestic and international 
suppliers. Ineffective supplier 
management can impact our product 
proposition and result in challenges 
with product range, availability, 
price and quality. 

Financial, Treasury 
and Tax 
The management of liquidity to make 
accurate and timely payments to 
team members and suppliers, and the 
management of capital and availability 
of funding, are important requirements 
to support our business operations 
and growth.

In addition, we are exposed to adverse 
fluctuations in foreign exchange rates 
and interest rates, which could impact 
profitability.

Accidents, natural disasters and 
other events can occur which affect 
our customers, team members 
and businesses. Insurance can be 
used to protect against losses from 
such incidents.    

•  We regularly review our supply chain resilience across our sourcing countries, 

transport channels, internal and partner facility network to confirm redundancy 
within changing external environments.

•  Our supply chain strategy and future network plans are reviewed and approved by 

our Board with a focus on providing the best outcomes for our customers as we seek 
to optimise our distribution and customer fulfilment centres, transport operations 
and last mile deliveries. Ongoing evaluation of current and future requirements are 
conducted to allow us to enhance and proactively manage our network and capacity.

•  Our resilience program is also supported by contingency plans and testing programs 
to allow quick response to fast changing environments as was seen during the year 
as COVID-19 restrictions were imposed across different states at different times.

•  We invest in technology to support safe, efficient and effective warehouse 

management and transport operations.

•  The Board, Risk Committee and Group Executive Committee has oversight of this risk. 

•  We have advanced in our commitment and focus on delivering digital and eCommerce 
solutions aligned with our customers. We have formed dedicated teams across our 
business units to develop innovative and stable solutions.

•  We invest in our technology, systems and infrastructure to provide a safe, secure and 

stable platform for our customers. This investment has also included innovative online 
fulfilment capabilities to meet the increasing demand for these services.

•  While developing these new solutions, we are committed to protecting our 

customers' data and managing new safety risks related to new delivery solutions 
such as last-mile deliveries.

•  The Board, Risk Committee and Group Executive Committee has oversight of this risk.

•  Our Responsible Sourcing, Modern Slavery and Quality Standards give clear 

guidance to our suppliers of the standards we require to support our commitment 
to source safe, quality and compliant products.  

•  We conduct periodic assessment of our suppliers, plus independent audits to give 

assurance and to drive ongoing improvement initiatives across our supplier base.

•  Our Voice of Supplier surveys and Supplier Speak Up Program provide mechanisms 
for our suppliers to respond openly (and anonymously) and their responses are 
reviewed and escalated as required.

•  The Board, Risk Committee and Group Executive Committee has oversight of this risk.

•  Our Group Treasury function is responsible for day-to-day management of 

our treasury risks, including liquidity, funding, interest rates, foreign currency, 
and counterparty risk. These risks are managed in accordance with the Board 
approved Treasury Policy and may include the use of derivatives and other risk 
management initiatives.

•  The Group’s insurance program incorporates a range of externally placed insurance 
policies and self-insured programs for specific risks. Our decision to self-insure 
depends on our ability to improve our risk profile to reduce cost, as well as the 
capacity of external insurance markets. We monitor our self-insured risks and 
have active programs to help us pre-empt and mitigate losses. 

•  Our financial targets are regularly monitored to confirm progress and to confirm 
our business is focused on pursuing opportunities and mitigating key risks. 
Our financial results have an assurance program with independent audits 
to confirm the soundness of our financial statements.

•  The Board, Audit and Finance Committee and Group Executive Committee have 

oversight of this risk.

41

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42

Governance

Good corporate governance continues to be central to 
Woolworths Group’s approach to creating sustainable 
growth and enhancing long-term shareholder value. 

Our ambition goes beyond legal compliance. Woolworths 
Group’s purpose to create better experiences together 
for a better tomorrow, shapes the Group’s commitment 
to better meet the needs of our customers, teams and 
key stakeholders. 

Woolworths Group has followed each of the 
recommendations of the ASX Corporate Governance 
Council’s Corporate Governance Principles and 

Recommendations (4th edition) throughout the reporting 
period. Further details of the key corporate governance 
policies and practices of Woolworths Group during the year 
are set out in the Corporate Governance Statement, which 
is available on the Woolworths Group website:  
www.woolworthsgroup.com.au. 

The members of the Board of Directors and the current 
membership of the Board’s committees are set out below. 
Further information about their skills and experience is set 
out on pages 44 to 45.

 DIRECTORS

Gordon Cairns
Maxine Brenner 2
Jennifer Carr-Smith
Holly Kramer
Siobhan McKenna
Scott Perkins
Kathee Tesija
Michael Ullmer AO
Brad Banducci 

BOARD 1

AUDIT & FINANCE 
COMMITTEE 3

RISK
 COMMITTEE 6

PEOPLE
 COMMITTEE 4

SUSTAINABILITY 
COMMITTEE

NOMINATION 
COMMITTEE

MEMBER OF:

Retail  

Markets 

Retail knowledge and experience of customer-led 

transformation in the food, drinks or general 

merchandise sectors

–
–

–

–

       5
–

-

–

–

–

–
      5
–

–

–

       5

–

–
–

–

LEGEND: 

  Chairman of Board/committee 

 Member of Board/committee

The following changes to the Board committee structure and membership occurred during the reporting period:
1 

 Ms Jillian Broadbent retired from the Board on 12 November 2020. Prior to her retirement Ms Broadbent was Chair of the Sustainability Committee and 
a member of the Audit, Risk Management and Compliance Committee and Nomination Committee.
 Ms Maxine Brenner was appointed to the Board on 1 December 2020. Ms Brenner joined the Audit and Finance Committee and Nomination Committee  
on 1 January 2021.

2 

3  Formerly the Audit, Risk Management and Compliance Committee.
4  Formerly the People Performance Committee. 
5  Ms Siobhan McKenna, Ms Holly Kramer and Ms Maxine Brenner commenced as chair of the respective Board committees on 1 January 2021  

(with Ms Brenner commencing as Risk Committee Chair on this date to facilitate the establishment of the Risk Committee). 

6  The Board’s Risk Committee was established on 1 May 2021.

43

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Board skills and experience

The Woolworths Group Board comprises directors with a diverse range of skills, 

experience and backgrounds to support the effective governance and robust 

decision-making of the Group, with a particular focus on the key desired areas listed 

below. An assessment of the optimum mix of these skills and experience takes place 

regularly. A summary of the key skills and experience of the current directors against 

those identified in the skills matrix is set out below:

SKILL/ 

EXPERIENCE

SUMMARY

DIRECTORS 

WITH SKILL/

EXPERIENCE

Board Diversity

Governance

governance standards 

Experience and a commitment to exceptional corporate 

Risk 

Management

Experience anticipating and identifying risks and 

monitoring the effectiveness of both financial and non-

financial risk management frameworks and controls

Strategy 

Experience defining strategic objectives, assessing 

business plans, and driving execution in large, complex 

organisations

Social 

Responsibility 

Commitment to and experience in monitoring programs 

for social responsibility, carbon emissions reduction, 

proactive management of workplace safety, mental 

health and physical wellbeing, and responsible sourcing

Digital 

Data and 

Technology 

Expertise and experience in adopting new technologies 

or implementing technology projects, digital disruption, 

leveraging digital technologies, or understanding the use 

of data and data analytics

Financial 

Acumen 

Understand financial drivers of the business and 

experience implementing or overseeing financial 

accounting, reporting and internal controls 

People and 

Culture

Experience monitoring a company’s culture, overseeing 

the operation of consequence management frameworks, 

overseeing people management and succession 

planning, and setting remuneration frameworks

Regulatory and 

Public Policy

Expertise identifying and managing legal, regulatory, 

public policy and corporate affairs issues

7/9

8/9

9/9

9/9

8/9

8/9

9/9

9/9

7/9

	Female 

	Male 

56%

44%

Board Tenure

	0–3 years 

	3–6 years 

	6–10 years 

22%

56%

22%

Board Global 

Experience

78%

International business 

experience and exposure 

to different political, 

cultural, regulatory and 

business environments

 
 
 
 
 
 
 
 
 
42

Governance

Good corporate governance continues to be central to 

Recommendations (4th edition) throughout the reporting 

Woolworths Group’s approach to creating sustainable 

period. Further details of the key corporate governance 

growth and enhancing long-term shareholder value. 

policies and practices of Woolworths Group during the year 

Our ambition goes beyond legal compliance. Woolworths 

Group’s purpose to create better experiences together 

for a better tomorrow, shapes the Group’s commitment 

are set out in the Corporate Governance Statement, which 

is available on the Woolworths Group website:  

www.woolworthsgroup.com.au. 

to better meet the needs of our customers, teams and 

The members of the Board of Directors and the current 

key stakeholders. 

Woolworths Group has followed each of the 

recommendations of the ASX Corporate Governance 

Council’s Corporate Governance Principles and 

membership of the Board’s committees are set out below. 

Further information about their skills and experience is set 

out on pages 44 to 45.

 DIRECTORS

Gordon Cairns

Maxine Brenner 2

Jennifer Carr-Smith

Holly Kramer

Siobhan McKenna

Scott Perkins

Kathee Tesija

Michael Ullmer AO

Brad Banducci 

–

–

–

–

       5

–

-

–

–

      5

–

–

–

–

       5

–

–

–

–

–

LEGEND: 

  Chairman of Board/committee 

 Member of Board/committee

The following changes to the Board committee structure and membership occurred during the reporting period:

1 

 Ms Jillian Broadbent retired from the Board on 12 November 2020. Prior to her retirement Ms Broadbent was Chair of the Sustainability Committee and 

a member of the Audit, Risk Management and Compliance Committee and Nomination Committee.

2 

 Ms Maxine Brenner was appointed to the Board on 1 December 2020. Ms Brenner joined the Audit and Finance Committee and Nomination Committee  

on 1 January 2021.

3  Formerly the Audit, Risk Management and Compliance Committee.

4  Formerly the People Performance Committee. 

5  Ms Siobhan McKenna, Ms Holly Kramer and Ms Maxine Brenner commenced as chair of the respective Board committees on 1 January 2021  

(with Ms Brenner commencing as Risk Committee Chair on this date to facilitate the establishment of the Risk Committee). 

6  The Board’s Risk Committee was established on 1 May 2021.

Board skills and experience

The Woolworths Group Board comprises directors with a diverse range of skills, 
experience and backgrounds to support the effective governance and robust 
decision-making of the Group, with a particular focus on the key desired areas listed 
below. An assessment of the optimum mix of these skills and experience takes place 
regularly. A summary of the key skills and experience of the current directors against 
those identified in the skills matrix is set out below:

SKILL/ 
EXPERIENCE

SUMMARY

DIRECTORS 
WITH SKILL/
EXPERIENCE

Board Diversity

BOARD 1

AUDIT & FINANCE 

COMMITTEE 3

RISK

PEOPLE

 COMMITTEE 6

 COMMITTEE 4

SUSTAINABILITY 

COMMITTEE

NOMINATION 

COMMITTEE

MEMBER OF:

Retail  
Markets 

Retail knowledge and experience of customer-led 
transformation in the food, drinks or general 
merchandise sectors

Governance

Experience and a commitment to exceptional corporate 
governance standards 

Risk 
Management

Experience anticipating and identifying risks and 
monitoring the effectiveness of both financial and non-
financial risk management frameworks and controls

Strategy 

Experience defining strategic objectives, assessing 
business plans, and driving execution in large, complex 
organisations

Social 
Responsibility 

Commitment to and experience in monitoring programs 
for social responsibility, carbon emissions reduction, 
proactive management of workplace safety, mental 
health and physical wellbeing, and responsible sourcing

Digital 
Data and 
Technology 

Expertise and experience in adopting new technologies 
or implementing technology projects, digital disruption, 
leveraging digital technologies, or understanding the use 
of data and data analytics

Financial 
Acumen 

Understand financial drivers of the business and 
experience implementing or overseeing financial 
accounting, reporting and internal controls 

People and 
Culture

Experience monitoring a company’s culture, overseeing 
the operation of consequence management frameworks, 
overseeing people management and succession 
planning, and setting remuneration frameworks

Regulatory and 
Public Policy

Expertise identifying and managing legal, regulatory, 
public policy and corporate affairs issues

7/9

8/9

9/9

9/9

8/9

8/9

9/9

9/9

7/9

	Female 
	Male 

56%
44%

Board Tenure

	0–3 years 
	3–6 years 
	6–10 years 

22%
56%
22%

Board Global 
Experience

78%

International business 
experience and exposure 
to different political, 
cultural, regulatory and 
business environments

43

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44

Board of 
Directors

Gordon Cairns  
MA (Hons) University of Edinburgh 
INDEPENDENT CHAIRMAN

Maxine Brenner 
BA, LLB
INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: 1 September 2015 
Term expires 2021 AGM

Appointed: 1 December 2020
Standing for election at 2021 AGM

Holly Kramer  

BA (Hons), MBA 

Scott Perkins  

BCom, LLB (Hons) 

INDEPENDENT NON-EXECUTIVE DIRECTOR

INDEPENDENT NON-EXECUTIVE DIRECTOR

INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: 8 February 2016

Appointed: 1 September 2014

Michael Ullmer AO  

BSc (Maths) (Hons), FCA, SF Fin

Appointed: 30 January 2012

Term expires 2021 AGM

Background and experience: Gordon has 
extensive Australian and international 
experience as a Chairman, director and 
senior executive. He has over 30 years’ 
of food and retail experience, including 
his time as Chief Executive Officer of 
Lion Nathan and as a senior manager 
in marketing, operations and finance 
roles with PepsiCo, Cadbury and Nestle. 
Other roles: Director of Good Return 
(since November 2007) and a senior 
advisor to Luminis Partners since 
January 2021. Previously Chairman of 
Origin Energy (Chairman from October 
2013 to October 2020, Director from 
2007 to October 2020), Director of 
Macquarie Group and Macquarie Bank 
(2014 to May 2021), Chairman of David 
Jones and Rebel Group, Director of 
Westpac Banking Corporation.

Background and experience: Maxine has 
extensive corporate advisory experience, 
particularly in mergers and acquisitions 
and corporate restructures. She is a 
former Managing Director of Investment 
Banking at Investec Bank (Australia) 
Limited. She also practised as a corporate 
lawyer with Freehill Hollingdale & Page 
(now Herbert Smith Freehills) and spent 
several years as a lecturer in the Faculty 
of Law at both the University of NSW 
and the University of Sydney.
Other roles: Director of Orica Limited 
(since April 2013), Qantas Airways 
Limited (since August 2013), Origin 
Energy (since November 2013) and 
a member of the University of NSW 
Council. Previously a Director of 
Growthpoint Properties Australia Limited 
(March 2012 to November 2020).

Background and experience: Holly 

is a former Chief Executive Officer of 

Background and experience: Scott is an 

experienced public company director and 

Background and experience:

Michael has extensive strategic, 

Australian retailer, Best & Less. She has 

has extensive Australian and international 

more than 25 years’ experience in general 

experience as a leading corporate advisor 

management and product, marketing and 

on strategy, mergers and acquisitions 

sales, including roles at the Ford Motor 

Company (in the US and Australia), 

Telstra Corporation and Pacific Brands.  

Other roles: Director of Endeavour 

Group Limited (since June 2021), 

Director of Fonterra Co-operative Group 

Limited (since May 2020), Director 

of Abacus Property Group (since 

December 2018) and Pro Chancellor 

of Western Sydney University (since 

and capital markets matters. He held 

senior executive leadership positions 

at Deutsche Bank from 1999 to 2013. 

These included Managing Director and 

Head of Corporate Finance for Australia 

and New Zealand, membership of the 

Asia Pacific Corporate and Investment 

Bank Management Committee and 

Chief Executive Officer of Deutsche 

Bank New Zealand.

January 2018). Previously Deputy Chair 

Other roles: Chairman of Origin 

of Australia Post (November 2015 to 

Energy since October 2020 (Director 

June 2020) and Director of AMP Limited 

since September 2015) and Brambles 

(October 2015 to May 2018).

(since June 2015).

financial and management expertise. 

He was Deputy Chief Executive at 

National Australia Bank (NAB) from 

October 2007 until he stepped 

down from the Bank in August 2011. 

He joined NAB in 2004 as Finance 

Director. Prior to NAB, Michael was 

Chief Financial Officer and then Group 

Executive for Institutional and Business 

Banking at Commonwealth Bank of 

Australia. Before that he was a Partner 

at Accounting Firms KPMG and 

Coopers & Lybrand. 

Other roles:

Chairman of Lendlease since November 

2018 (Director since December 2011).

Brad Banducci  
MBA, LLB, BComm (Acc) 
CHIEF EXECUTIVE OFFICER AND  
MANAGING DIRECTOR

Appointed: 26 February 2016

Jennifer Carr-Smith  
BA Economics, MBA
INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: 17 May 2019

Siobhan McKenna  

B.Ec (Hons), MPhil 

Kathryn (Kathee) Tesija  

BSRMM (Fashion Merchandising)

Jillian Broadbent AC

BA (Maths & Economics)

INDEPENDENT NON-EXECUTIVE DIRECTOR

INDEPENDENT NON-EXECUTIVE DIRECTOR

INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: 8 February 2016

Appointed: 9 May 2016

Retired: 12 November 2020 

Background and experience:
Brad was appointed Managing 
Director of Woolworths Food Group 
in March 2015 followed by Chief 
Executive Officer of Woolworths 
Group in February 2016. Prior to his 
appointment, he was Director of the 
Group’s Drinks business between 
2012 and March 2015. Brad joined the 
Group in 2011 after the acquisition of 
the Cellarmasters Group. He was Chief 
Executive Officer of Cellarmasters 
from 2007 to 2011. Prior to this, 
he was the Chief Financial Officer 
and Director at Tyro Payments and 
a Vice President and Director with 
The Boston Consulting Group, where 
he was a core member of their retail 
practice for 15 years. 

Background and experience: Jennifer 
is a seasoned board director and online 
retail executive with experience across 
organisations undergoing rapid growth 
and transformation in a number of 
sectors, including consumer packaged 
goods, apparel and grocery. Jennifer 
has over 25 years' experience with 
diverse organisations from start-ups 
to large global companies. She has 
previously held roles as Senior Vice 
President, General Manager of North 
America at Groupon and President 
and CEO of Peapod, an online grocery 
delivery service.
Other roles: Director of Full Harvest 
(since January 2020), Perdue Farms 
(since February 2019) and of Blue 
Apron (since October 2020).

Background and experience: Siobhan 

Background and experience: Kathee 

Background and experience: Jillian 

has a significant international 

background in strategy and policy 

in the public and private sectors. 

has extensive retailing experience 

in the US market, particularly in 

merchandising and supply chain 

has extensive experience in corporate 

banking and finance in both Australia 

and internationally, primarily with 

As a CEO, she has led consumer-facing 

management. During a 30-year 

Bankers Trust Australia. 

businesses in the media and digital 

sectors. She was a Commissioner of 

executive career with Target 

Corporation in the US, she served as 

the Australian Productivity Commission 

Chief Merchandising and Supply Chain 

and Partner of McKinsey & Company. 

Officer and Executive Vice President. 

Siobhan is currently CEO Broadcasting, 

Kathee continued her involvement in 

News Corp.

Other roles: Executive Chairman of 

Foxtel, Fox Sports and Australian News 

Channel, Director of Amcil (since 

Target as a Strategic Advisor until 2016. 

Ms Tesija was a Director of Verizon 

Communications, Inc. (from 2012 

to May 2020).

March 2016) and Nova Entertainment.

Other roles: Director of the Clorox 

Company (since May 2020) and 

a senior advisor and consultant for 

Simpactful, a retail consulting agency 

in the US.

Other roles: Director of Macquarie 

Group and Macquarie Bank 

(since November 2018), the National 

Portrait Gallery of Australia and the 

Sydney Dance Company. Previously 

Chair of the Board of Swiss Re 

Life & Health Australia, inaugural Chair 

of Clean Energy Finance Corporation, 

a member of the Board of the Reserve 

Bank of Australia and a director of 

ASX Limited, SBS, Coca Cola Amatil 

Limited, Woodside Petroleum Limited, 

Qantas Airways Limited and Westfield 

Management Limited. 

45

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44

Board of 

Directors

Gordon Cairns  

MA (Hons) University of Edinburgh 

INDEPENDENT CHAIRMAN

Maxine Brenner 

BA, LLB

INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: 1 September 2015 

Term expires 2021 AGM

Appointed: 1 December 2020

Standing for election at 2021 AGM

Holly Kramer  
BA (Hons), MBA 
INDEPENDENT NON-EXECUTIVE DIRECTOR

Scott Perkins  
BCom, LLB (Hons) 
INDEPENDENT NON-EXECUTIVE DIRECTOR

Michael Ullmer AO  
BSc (Maths) (Hons), FCA, SF Fin
INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: 8 February 2016

Appointed: 1 September 2014

Appointed: 30 January 2012
Term expires 2021 AGM

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Background and experience: Gordon has 

Background and experience: Maxine has 

extensive Australian and international 

extensive corporate advisory experience, 

experience as a Chairman, director and 

particularly in mergers and acquisitions 

senior executive. He has over 30 years’ 

of food and retail experience, including 

his time as Chief Executive Officer of 

Lion Nathan and as a senior manager 

in marketing, operations and finance 

and corporate restructures. She is a 

former Managing Director of Investment 

Banking at Investec Bank (Australia) 

Limited. She also practised as a corporate 

lawyer with Freehill Hollingdale & Page 

roles with PepsiCo, Cadbury and Nestle. 

(now Herbert Smith Freehills) and spent 

Other roles: Director of Good Return 

(since November 2007) and a senior 

advisor to Luminis Partners since 

several years as a lecturer in the Faculty 

of Law at both the University of NSW 

and the University of Sydney.

January 2021. Previously Chairman of 

Other roles: Director of Orica Limited 

Origin Energy (Chairman from October 

(since April 2013), Qantas Airways 

2013 to October 2020, Director from 

2007 to October 2020), Director of 

Limited (since August 2013), Origin 

Energy (since November 2013) and 

Macquarie Group and Macquarie Bank 

a member of the University of NSW 

(2014 to May 2021), Chairman of David 

Council. Previously a Director of 

Jones and Rebel Group, Director of 

Growthpoint Properties Australia Limited 

Westpac Banking Corporation.

(March 2012 to November 2020).

Background and experience: Holly 
is a former Chief Executive Officer of 
Australian retailer, Best & Less. She has 
more than 25 years’ experience in general 
management and product, marketing and 
sales, including roles at the Ford Motor 
Company (in the US and Australia), 
Telstra Corporation and Pacific Brands.  
Other roles: Director of Endeavour 
Group Limited (since June 2021), 
Director of Fonterra Co-operative Group 
Limited (since May 2020), Director 
of Abacus Property Group (since 
December 2018) and Pro Chancellor 
of Western Sydney University (since 
January 2018). Previously Deputy Chair 
of Australia Post (November 2015 to 
June 2020) and Director of AMP Limited 
(October 2015 to May 2018).

Background and experience: Scott is an 
experienced public company director and 
has extensive Australian and international 
experience as a leading corporate advisor 
on strategy, mergers and acquisitions 
and capital markets matters. He held 
senior executive leadership positions 
at Deutsche Bank from 1999 to 2013. 
These included Managing Director and 
Head of Corporate Finance for Australia 
and New Zealand, membership of the 
Asia Pacific Corporate and Investment 
Bank Management Committee and 
Chief Executive Officer of Deutsche 
Bank New Zealand.
Other roles: Chairman of Origin 
Energy since October 2020 (Director 
since September 2015) and Brambles 
(since June 2015).

Background and experience:
Michael has extensive strategic, 
financial and management expertise. 
He was Deputy Chief Executive at 
National Australia Bank (NAB) from 
October 2007 until he stepped 
down from the Bank in August 2011. 
He joined NAB in 2004 as Finance 
Director. Prior to NAB, Michael was 
Chief Financial Officer and then Group 
Executive for Institutional and Business 
Banking at Commonwealth Bank of 
Australia. Before that he was a Partner 
at Accounting Firms KPMG and 
Coopers & Lybrand. 
Other roles:
Chairman of Lendlease since November 
2018 (Director since December 2011).

Brad Banducci  

MBA, LLB, BComm (Acc) 

CHIEF EXECUTIVE OFFICER AND  

MANAGING DIRECTOR

Appointed: 26 February 2016

Jennifer Carr-Smith  

BA Economics, MBA

INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: 17 May 2019

Siobhan McKenna  
B.Ec (Hons), MPhil 
INDEPENDENT NON-EXECUTIVE DIRECTOR

Kathryn (Kathee) Tesija  
BSRMM (Fashion Merchandising)
INDEPENDENT NON-EXECUTIVE DIRECTOR

Jillian Broadbent AC
BA (Maths & Economics)
INDEPENDENT NON-EXECUTIVE DIRECTOR

Appointed: 8 February 2016

Appointed: 9 May 2016

Retired: 12 November 2020 

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Background and experience:

Brad was appointed Managing 

Director of Woolworths Food Group 

in March 2015 followed by Chief 

Executive Officer of Woolworths 

Group in February 2016. Prior to his 

appointment, he was Director of the 

Group’s Drinks business between 

Background and experience: Jennifer 

is a seasoned board director and online 

retail executive with experience across 

organisations undergoing rapid growth 

and transformation in a number of 

sectors, including consumer packaged 

goods, apparel and grocery. Jennifer 

has over 25 years' experience with 

2012 and March 2015. Brad joined the 

diverse organisations from start-ups 

Group in 2011 after the acquisition of 

to large global companies. She has 

the Cellarmasters Group. He was Chief 

previously held roles as Senior Vice 

Executive Officer of Cellarmasters 

from 2007 to 2011. Prior to this, 

he was the Chief Financial Officer 

and Director at Tyro Payments and 

a Vice President and Director with 

The Boston Consulting Group, where 

he was a core member of their retail 

practice for 15 years. 

President, General Manager of North 

America at Groupon and President 

and CEO of Peapod, an online grocery 

delivery service.

Other roles: Director of Full Harvest 

(since January 2020), Perdue Farms 

(since February 2019) and of Blue 

Apron (since October 2020).

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Background and experience: Siobhan 
has a significant international 
background in strategy and policy 
in the public and private sectors. 
As a CEO, she has led consumer-facing 
businesses in the media and digital 
sectors. She was a Commissioner of 
the Australian Productivity Commission 
and Partner of McKinsey & Company. 
Siobhan is currently CEO Broadcasting, 
News Corp.
Other roles: Executive Chairman of 
Foxtel, Fox Sports and Australian News 
Channel, Director of Amcil (since 
March 2016) and Nova Entertainment.

Background and experience: Kathee 
has extensive retailing experience 
in the US market, particularly in 
merchandising and supply chain 
management. During a 30-year 
executive career with Target 
Corporation in the US, she served as 
Chief Merchandising and Supply Chain 
Officer and Executive Vice President. 
Kathee continued her involvement in 
Target as a Strategic Advisor until 2016. 
Ms Tesija was a Director of Verizon 
Communications, Inc. (from 2012 
to May 2020).
Other roles: Director of the Clorox 
Company (since May 2020) and 
a senior advisor and consultant for 
Simpactful, a retail consulting agency 
in the US.

Background and experience: Jillian 
has extensive experience in corporate 
banking and finance in both Australia 
and internationally, primarily with 
Bankers Trust Australia. 
Other roles: Director of Macquarie 
Group and Macquarie Bank 
(since November 2018), the National 
Portrait Gallery of Australia and the 
Sydney Dance Company. Previously 
Chair of the Board of Swiss Re 
Life & Health Australia, inaugural Chair 
of Clean Energy Finance Corporation, 
a member of the Board of the Reserve 
Bank of Australia and a director of 
ASX Limited, SBS, Coca Cola Amatil 
Limited, Woodside Petroleum Limited, 
Qantas Airways Limited and Westfield 
Management Limited. 

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Brad Banducci 
CHIEF EXECUTIVE OFFICER AND  
MANAGING DIRECTOR

Christian Bennett
GROUP HEAD REPUTATION, GOVERNMENT 
RELATIONS & INDUSTRY AFFAIRS

Natalie Davis

MANAGING DIRECTOR OF 

WOOLWORTHS SUPERMARKETS 

Stephen Harrison 

CHIEF FINANCIAL OFFICER

Alex Holt

CHIEF SUSTAINABILITY OFFICER

Group 
Executive 
Committee

Biography available in Board 
of Directors, refer to page 44.

Christian Bennett has 25 years' 
experience in senior government-related 
roles, across both private and public 
sectors. Christian joined Woolworths 
Group in November 2017. Previously, 
he has led government relations 
efforts for General Electric Inc across 
Southeast Asia, Australia and New 
Zealand, for BHP Billiton Ltd and was 
Group Executive of Public Affairs at 
Santos Ltd. In government, Christian 
spent 14 years in Australia's diplomatic 
service, including postings in southern 
Africa, Asia and the United States and 
secondments into the Office of the 
Foreign Minister and the Department 
of Prime Minister & Cabinet. Christian 
has an MBA from Melbourne Business 
School and a Bachelor of Law (Hons) 
and of Commerce from the University 
of Melbourne. He is a Board Member of 
the Australia – US Fulbright Commission 
and the Royal Institution of Australia.

Natalie Davis was appointed 

Stephen Harrison was appointed 

Alex Holt was appointed Chief 

Managing Director of Woolworths 

Chief Financial Officer for Woolworths 

Sustainability Officer of Woolworths 

Supermarkets in October 2020. Prior 

Group in August 2019. Prior to his 

Group in June 2021. Prior to this, Alex 

to this, Natalie was Managing Director, 

appointment, Stephen held the role 

Woolworths New Zealand since July 

of Finance Director for Australian 

oversaw the Group’s sustainability 

portfolio as General Manager of 

2018, and before that, Chief Customer 

Food from July 2015 and before that, 

Sustainability, Health and Quality from 

Transformation Officer, Woolworths 

Group since May 2017, leading the 

was Finance Director for Endeavour 

Drinks from July 2013. Before joining 

development of the Group’s Customer 

the Group in 2013, Stephen worked for 

a number of leading FMCG businesses 

in Australia and New Zealand, including 

category management. Alex is also 

April 2016. Alex joined Woolworths 

Group in 2011 from Tesco, having 

worked across a number of roles in 

business improvement, buying and 

a Non-Executive Director of Foodbank 

Australia, one of Woolworths’ key 

hunger-relief partners.

1st strategies, transformation and 

culture. Natalie joined the Group 

in July 2015 as Director of Customer 

Transformation, Food Group. Before 

joining Woolworths, Natalie was 

a Partner at McKinsey & Co, where 

she worked in the UK and Australia 

for 15 years advising on strategy and 

commercial transformation. Natalie 

holds an MBA from INSEAD France, 

and a Bachelor of Commerce and 

Law degrees with Honours from the 

University of Sydney. Natalie is also 

a member of Chief Executive Women.

as Finance Director for Valspar ANZ 

(formerly Wattyl Paints) and Finance 

Director for Bluebird Foods in New 

Zealand, a subsidiary of PepsiCo. 

Stephen also spent time working for 

PepsiCo in Australia and prior to that 

worked for Foster’s for four years. 

Stephen is a Chartered Accountant, 

spending over a decade with KPMG, 

following his graduation from 

Macquarie University.

Amanda Bardwell 
MANAGING DIRECTOR OF WOOLIESX 

Guy Brent
MANAGING DIRECTOR OF THE WOOLWORTHS 
FOOD COMPANY AND METRO

Paul Graham

Andrew Hicks 

John Hunt

CHIEF SUPPLY CHAIN OFFICER AND 

CHIEF MARKETING OFFICER

CHIEF INFORMATION OFFICER

MANAGING DIRECTOR OF PRIMARY CONNECT

Amanda Bardwell was appointed the 
Managing Director of WooliesX for 
the Woolworths Group in May 2017. 
WooliesX includes Woolworths Digital, 
E-Commerce, Customer Loyalty and 
Customer Services. Amanda started 
her retail career in Queensland working 
for a food retail franchise for five years 
before joining the Woolworths Group in 
2001. During her time at Woolworths 
Group, Amanda has worked across 
both the Supermarket and Drinks 
businesses. Amanda has held positions 
in both general management and 
specialist senior executive roles across 
omni-channel retailing, eCommerce, 
marketing, buying, private label, 
and business development.
Amanda has an MBA from the 
University of New South Wales and a 
Bachelor of Business from the University 
of Technology Queensland and is a 
member of Chief Executive Women.

Guy Brent was appointed Managing 
Director, The Woolworths Food 
Company and Metro in August 2019. 
Prior to this, Guy was the Director of 
BWS since August 2014, and before 
that, was the General Manager 
of Pinnacle Drinks, which he was 
responsible for setting up in July 2012.
Guy joined Woolworths Group in 
April 2011 after the acquisition of 
the Cellarmasters Group, where he 
was Chief Financial Officer from 
2007 to 2011. Before that, Guy was 
a Commercial Director at Optus for 
two years after emigrating from the 
UK to Australia in 2005.
Guy is a qualified Chartered 
Accountant and has a BSC from 
the University of Bristol in the UK.

Paul Graham began his career in the 

Andrew Hicks was appointed Chief 

John Hunt joined the Woolworths 

region as well as the United Kingdom, 

Food Group and Supermarkets since 

supply chain industry in 1980 and 

spent a significant part of his career 

living and working in the Asia Pacific 

Australia and North America. Before 

joining Woolworths Group, Paul was 

Global COO and CEO for Europe 

for DHL. Paul has held numerous 

Board positions in a diverse range of 

industries from farming and produce, 

wholesale, marketing and digital 

a not-for-profit focused on improving 

mental health in the transport and 

logistic industry. He has also served 

on various government and university 

linked advisory boards. Paul joined 

the Woolworths Group in June 2016.

Marketing Officer, Woolworths Group 

Group in 2017 as Chief Information 

in June 2019. Andrew was previously 

Officer. John spent over 25 years at 

Director of Marketing, Woolworths 

Woolworths Holdings Limited, South 

Africa where he held a range of senior 

November 2015. Prior to this, Andrew 

IT and core retail leadership roles, 

was General Manager, Marketing, 

including CIO and Senior Executive 

Woolworths Liquor Group since 2012, 

for Food Planning and Value chain.

leading the transformation of the BWS 

brand and extending Dan Murphy's lead 

as Australia's most iconic drinks retail 

brand. Andrew originally joined the 

Prior to Woolworths Group, Andrew 

for Musica in South Africa. Andrew 

has a Bachelor of Social Science and 

Marketing Honours degrees from the 

University of KwaZulu-Natal as well as 

a Diploma in Advertising (Copywriting) 

from The Red & Yellow School.

A graduate from the Cape Peninsula 

University of Technology in Cape 

Town, John is a retailer through and 

through and is passionate about how 

information technology and technology 

innovation is being optimally used in 

enabling the business to support both 

as ensuring our customers have the 

best shopping experience.

was the National Marketing Executive 

the front line team members as well 

services as well as FMCG. Paul is the 

Group in 2008 as National Marketing 

Chair of the Healthy Heads Foundation, 

Manager of Dan Murphy’s. 

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Group 

Executive 

Committee

Brad Banducci 

CHIEF EXECUTIVE OFFICER AND  

MANAGING DIRECTOR

Christian Bennett

GROUP HEAD REPUTATION, GOVERNMENT 

RELATIONS & INDUSTRY AFFAIRS

Natalie Davis
MANAGING DIRECTOR OF 
WOOLWORTHS SUPERMARKETS 

Stephen Harrison 
CHIEF FINANCIAL OFFICER

Alex Holt
CHIEF SUSTAINABILITY OFFICER

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Biography available in Board 

of Directors, refer to page 44.

Christian Bennett has 25 years' 

experience in senior government-related 

roles, across both private and public 

sectors. Christian joined Woolworths 

Group in November 2017. Previously, 

he has led government relations 

efforts for General Electric Inc across 

Southeast Asia, Australia and New 

Zealand, for BHP Billiton Ltd and was 

Group Executive of Public Affairs at 

Santos Ltd. In government, Christian 

spent 14 years in Australia's diplomatic 

service, including postings in southern 

Africa, Asia and the United States and 

secondments into the Office of the 

Foreign Minister and the Department 

of Prime Minister & Cabinet. Christian 

has an MBA from Melbourne Business 

School and a Bachelor of Law (Hons) 

and of Commerce from the University 

of Melbourne. He is a Board Member of 

the Australia – US Fulbright Commission 

and the Royal Institution of Australia.

Natalie Davis was appointed 
Managing Director of Woolworths 
Supermarkets in October 2020. Prior 
to this, Natalie was Managing Director, 
Woolworths New Zealand since July 
2018, and before that, Chief Customer 
Transformation Officer, Woolworths 
Group since May 2017, leading the 
development of the Group’s Customer 
1st strategies, transformation and 
culture. Natalie joined the Group 
in July 2015 as Director of Customer 
Transformation, Food Group. Before 
joining Woolworths, Natalie was 
a Partner at McKinsey & Co, where 
she worked in the UK and Australia 
for 15 years advising on strategy and 
commercial transformation. Natalie 
holds an MBA from INSEAD France, 
and a Bachelor of Commerce and 
Law degrees with Honours from the 
University of Sydney. Natalie is also 
a member of Chief Executive Women.

Stephen Harrison was appointed 
Chief Financial Officer for Woolworths 
Group in August 2019. Prior to his 
appointment, Stephen held the role 
of Finance Director for Australian 
Food from July 2015 and before that, 
was Finance Director for Endeavour 
Drinks from July 2013. Before joining 
the Group in 2013, Stephen worked for 
a number of leading FMCG businesses 
in Australia and New Zealand, including 
as Finance Director for Valspar ANZ 
(formerly Wattyl Paints) and Finance 
Director for Bluebird Foods in New 
Zealand, a subsidiary of PepsiCo. 
Stephen also spent time working for 
PepsiCo in Australia and prior to that 
worked for Foster’s for four years. 
Stephen is a Chartered Accountant, 
spending over a decade with KPMG, 
following his graduation from 
Macquarie University.

Alex Holt was appointed Chief 
Sustainability Officer of Woolworths 
Group in June 2021. Prior to this, Alex 
oversaw the Group’s sustainability 
portfolio as General Manager of 
Sustainability, Health and Quality from 
April 2016. Alex joined Woolworths 
Group in 2011 from Tesco, having 
worked across a number of roles in 
business improvement, buying and 
category management. Alex is also 
a Non-Executive Director of Foodbank 
Australia, one of Woolworths’ key 
hunger-relief partners.

Amanda Bardwell 

Guy Brent

MANAGING DIRECTOR OF WOOLIESX 

MANAGING DIRECTOR OF THE WOOLWORTHS 

FOOD COMPANY AND METRO

Paul Graham
CHIEF SUPPLY CHAIN OFFICER AND 
MANAGING DIRECTOR OF PRIMARY CONNECT

Andrew Hicks 
CHIEF MARKETING OFFICER

John Hunt
CHIEF INFORMATION OFFICER

Amanda Bardwell was appointed the 

Managing Director of WooliesX for 

the Woolworths Group in May 2017. 

Guy Brent was appointed Managing 

Director, The Woolworths Food 

Company and Metro in August 2019. 

WooliesX includes Woolworths Digital, 

Prior to this, Guy was the Director of 

E-Commerce, Customer Loyalty and 

Customer Services. Amanda started 

BWS since August 2014, and before 

that, was the General Manager 

her retail career in Queensland working 

of Pinnacle Drinks, which he was 

for a food retail franchise for five years 

responsible for setting up in July 2012.

before joining the Woolworths Group in 

2001. During her time at Woolworths 

Group, Amanda has worked across 

both the Supermarket and Drinks 

businesses. Amanda has held positions 

in both general management and 

specialist senior executive roles across 

omni-channel retailing, eCommerce, 

marketing, buying, private label, 

and business development.

Amanda has an MBA from the 

University of New South Wales and a 

Bachelor of Business from the University 

of Technology Queensland and is a 

member of Chief Executive Women.

Guy joined Woolworths Group in 

April 2011 after the acquisition of 

the Cellarmasters Group, where he 

was Chief Financial Officer from 

2007 to 2011. Before that, Guy was 

a Commercial Director at Optus for 

two years after emigrating from the 

UK to Australia in 2005.

Guy is a qualified Chartered 

Accountant and has a BSC from 

the University of Bristol in the UK.

Paul Graham began his career in the 
supply chain industry in 1980 and 
spent a significant part of his career 
living and working in the Asia Pacific 
region as well as the United Kingdom, 
Australia and North America. Before 
joining Woolworths Group, Paul was 
Global COO and CEO for Europe 
for DHL. Paul has held numerous 
Board positions in a diverse range of 
industries from farming and produce, 
wholesale, marketing and digital 
services as well as FMCG. Paul is the 
Chair of the Healthy Heads Foundation, 
a not-for-profit focused on improving 
mental health in the transport and 
logistic industry. He has also served 
on various government and university 
linked advisory boards. Paul joined 
the Woolworths Group in June 2016.

Andrew Hicks was appointed Chief 
Marketing Officer, Woolworths Group 
in June 2019. Andrew was previously 
Director of Marketing, Woolworths 
Food Group and Supermarkets since 
November 2015. Prior to this, Andrew 
was General Manager, Marketing, 
Woolworths Liquor Group since 2012, 
leading the transformation of the BWS 
brand and extending Dan Murphy's lead 
as Australia's most iconic drinks retail 
brand. Andrew originally joined the 
Group in 2008 as National Marketing 
Manager of Dan Murphy’s. 
Prior to Woolworths Group, Andrew 
was the National Marketing Executive 
for Musica in South Africa. Andrew 
has a Bachelor of Social Science and 
Marketing Honours degrees from the 
University of KwaZulu-Natal as well as 
a Diploma in Advertising (Copywriting) 
from The Red & Yellow School.

John Hunt joined the Woolworths 
Group in 2017 as Chief Information 
Officer. John spent over 25 years at 
Woolworths Holdings Limited, South 
Africa where he held a range of senior 
IT and core retail leadership roles, 
including CIO and Senior Executive 
for Food Planning and Value chain.
A graduate from the Cape Peninsula 
University of Technology in Cape 
Town, John is a retailer through and 
through and is passionate about how 
information technology and technology 
innovation is being optimally used in 
enabling the business to support both 
the front line team members as well 
as ensuring our customers have the 
best shopping experience.

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48

GROUP EXECUTIVE COMMITTEE

Von Ingram
CHIEF CUSTOMER TRANSFORMATION OFFICER

Rob McCartney
FORMAT AND NETWORK 
DEVELOPMENT DIRECTOR

Claire Peters
MANAGING DIRECTOR OF B2B 
& EVERYDAY NEEDS

Spencer Sonn

NEW ZEALAND

Stephen Donohue

GROUP (CEASED 28 JUNE 2021)

MANAGING DIRECTOR OF WOOLWORTHS 

MANAGING DIRECTOR AND CEO ENDEAVOUR 

Von Ingram joined Woolworths Group as 
Chief Customer Transformation Officer 
in July 2018, leading transformation and 
customer first strategy for the Group. 
Prior to this, Von was Managing Director 
and Partner at The Boston Consulting 
Group, working in Australia and US retail 
for 10 years, leading strategy, customer 
insight and retail transformation roles 
across a range of retail players in food 
and general merchandise.
Von holds an MBA from Melbourne 
Business School and has also completed 
a Bachelor of Commerce, with First 
Class Honours from the University 
of Western Australia.

Rob McCartney was appointed Format 
and Network Development Director, 
Woolworths Group in July 2020. Prior 
to this, Rob held the role of Format 
Development Director for Australian 
Food where he led the Woolworths 
Renewal program, repositioning the 
supermarket customer proposition. Rob 
is an experienced retailer with over 26 
years’ experience driving innovation and 
operationalising strategy. Starting his 
career in stores for Woolworths South 
Africa, Rob progressed through various 
roles within the business, including 
operations, buying and supply chain. 
In 2001, Rob joined Cap Gemini Ernst 
& Young in Sydney where he specialised 
in retail and supply chain transformation 
across Asia. Following this, Rob joined 
Coles to work in its supply chain group 
before moving into format transformation 
and supporting the supermarkets’ format 
turnaround under Wesfarmers ownership. 
Rob has also held senior roles at 
7-Eleven and Target prior to joining 
Woolworths Group in December 2015.

Claire Peters was appointed Managing 
Director of B2B and Everyday Needs 
in October 2020. Prior to this, Claire 
was Managing Director, Woolworths 
Supermarkets from June 2017. Claire 
is an experienced retailer with over 
25 years’ experience. Claire started her 
retail career as a graduate for grocery 
retailer, Tesco. During this time she 
held a variety of senior roles, including 
Regional Retail Director; Managing 
Director, Large Stores; and Commercial 
Director, Healthcare & Baby, Beauty and 
Toiletries. In March 2014 Claire moved 
to Thailand to take up COO for Tesco 
Thailand, managing the responsibility 
of over 3,000 stores. Claire holds a BSC 
Hons in Economics and Sociology from 
the University of Loughborough, UK and 
has been a member of Chief Executive 
Women since 2017.

Spencer was appointed Managing 

Director of Woolworths New Zealand 

in March 2021. Prior to this, Spencer 

held the role of Managing Director 

Steve has over 25 years’ experience 

in the retail industry and has a deep 

appreciation for core retail principles 

and a strong focus on the customer 

Food at Woolworths Holdings Limited, 

experience. He has held a broad 

South Africa, from 2015 to 2021, 

where he was responsible for the 

Groups’ Food Division across more 

than 400 supermarkets and 33,000 

team members. During this time 

he also served as a board member 

on the Consumer Goods Forum of 

South Africa. Spencer has a 25-year 

range of roles in the Endeavour Drinks 

business since commencing as a store 

manager at Dan Murphy’s in 1994. 

Prior to being appointed the Managing 

Director of Endeavour Drinks in 2018, 

Steve gained broad experience across 

the Endeavour Drinks business, having 

held senior buying, merchandising and 

grocery career, starting out on a store 

marketing roles at Dan Murphy’s and 

management graduate program and 

BWS. Earlier, Steve held the role of 

progressing through a variety of roles, 

Director of Buying and Merchandising 

including operations, and has held 

various senior roles in commercial, 

for Woolworths Supermarkets. Steve 

commenced as Chief Executive Officer 

buying and procurement in fresh and 

of Endeavour Group effective 28 June 

long-life food. He also led the food 

2021 upon the separation of Endeavour 

division’s entry into a new food service 

Group from Woolworths Group. Steve 

format. Spencer completed the General 

ceased to be a member of Woolworths 

Management Program at Harvard 

Business School in 2015.

Group Executive Committee and Key 

Management Personnel on 28 July 

2021 upon the separation of Endeavour 

Group from Woolworths Group. 

Caryn Katsikogianis 
CHIEF PEOPLE OFFICER 

Pejman Okhovat
MANAGING DIRECTOR OF BIG W

Bill Reid
CHIEF LEGAL OFFICER

David Walker 

CHIEF RISK OFFICER

Colin Storrie 

MANAGING DIRECTOR GROUP PORTFOLIO 

(CEASED 28  JUNE 2021)

Caryn Katsikogianis was appointed 
Chief People Officer in November 
2016, leading our Team First Strategy 
for Woolworths Group, including 
our focus on Team Experience, 
Holistic Wellbeing, Safety, Talent and 
Inclusion. Prior to this Caryn was the 
HR Director of the Woolworths Food 
Group and General Manager Business 
Transformation and held various senior 
HR roles across BIG W, Supply Chain, 
and Group.
Caryn holds a Bachelor of Commerce 
degree from the University of South 
Africa. Caryn is an experienced HR 
leader with over 25 years' experience 
within the retail industry. Caryn has 
been a member of Chief Executive 
Women since 2017.

Pejman Okhovat was appointed 
Managing Director of BIG W in April 
2021. Prior to joining the Group, Pejman 
was the Chief Operating Officer of 
New Zealand-based The Warehouse 
Group, having previously been the 
Chief Executive of The Warehouse 
value retailing business and Warehouse 
Stationery brands, following joining the 
Group in 2005. Pejman started his retail 
career in the UK with Marks and Spencer 
27 years ago, subsequently working for 
other well known UK retailers such as 
ASDA Walmart, Sainsbury's and Iceland 
across many regional, national and 
senior roles within operations, format 
development and category management. 
Pejman holds a BA Hons in Business 
Studies from Leeds Business School and 
has attended Insead’s AMP course.

Bill joined Woolworths Group as Chief 
Legal Officer in October 2019. Prior 
to his appointment, Bill was a senior 
Partner at Ashurst for many years, 
leading the firm’s Competition team, 
and in various management positions 
across Australia and Asia.   
Bill has long experience in responding 
to regulatory issues, litigation, and 
corporate transactions. Bill holds 
an MBA from Melbourne Business 
School and a Bachelor of Laws from 
the University of Adelaide.  

David Walker was appointed Chief 

Risk Officer for the Woolworths 

Colin Storrie has over 20 years’ 

experience in senior finance roles in 

Group in November 2020. Prior to this 

listed companies, investment banking 

appointment, David was the Managing 

and government. Prior to Colin’s role as 

Director of BIG W from November 

2016 and served as CEO of Masters 

Home Improvement for 10 months 

to November 2016.

Managing Director Group Portfolio, he 

joined as Deputy Chief Financial Officer, 

Woolworths Group in 2015. Colin has 

also held group treasurer, deputy chief 

David joined Woolworths Group 

in 1998 and has worked extensively 

in finance and business transformation, 

including Dick Smith Electronic and 

Woolworths Supply Chain. 

David is a member of Chartered 

Accountants Australia and New 

Zealand and prior to Woolworths 

Group he worked for Coopers and 

Lybrand for 10 years.

financial officer and chief financial 

officer positions at both Qantas 

Airways Ltd and AMP Ltd.

Colin Storrie ceased to be a member 

of the Group Executive Committee 

effective 28 June 2021 following his 

resignation from Woolworths Group.

Notes:

Amitabh Mall was appointed 

Chief Analytics Officer and 

Managing Director of Q-Retail 

effective 1 July 2021.

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48

GROUP EXECUTIVE COMMITTEE

Von Ingram

CHIEF CUSTOMER TRANSFORMATION OFFICER

Rob McCartney

FORMAT AND NETWORK 

DEVELOPMENT DIRECTOR

Claire Peters

MANAGING DIRECTOR OF B2B 

& EVERYDAY NEEDS

Spencer Sonn
MANAGING DIRECTOR OF WOOLWORTHS 
NEW ZEALAND

Stephen Donohue
MANAGING DIRECTOR AND CEO ENDEAVOUR 
GROUP (CEASED 28 JUNE 2021)

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Von Ingram joined Woolworths Group as 

Rob McCartney was appointed Format 

Claire Peters was appointed Managing 

Chief Customer Transformation Officer 

and Network Development Director, 

in July 2018, leading transformation and 

Woolworths Group in July 2020. Prior 

customer first strategy for the Group. 

to this, Rob held the role of Format 

Prior to this, Von was Managing Director 

Development Director for Australian 

and Partner at The Boston Consulting 

Food where he led the Woolworths 

Director of B2B and Everyday Needs 

in October 2020. Prior to this, Claire 

was Managing Director, Woolworths 

Supermarkets from June 2017. Claire 

is an experienced retailer with over 

Group, working in Australia and US retail 

Renewal program, repositioning the 

25 years’ experience. Claire started her 

for 10 years, leading strategy, customer 

supermarket customer proposition. Rob 

retail career as a graduate for grocery 

insight and retail transformation roles 

across a range of retail players in food 

is an experienced retailer with over 26 

retailer, Tesco. During this time she 

years’ experience driving innovation and 

held a variety of senior roles, including 

and general merchandise.

Von holds an MBA from Melbourne 

Business School and has also completed 

a Bachelor of Commerce, with First 

Class Honours from the University 

of Western Australia.

operationalising strategy. Starting his 

Regional Retail Director; Managing 

career in stores for Woolworths South 

Director, Large Stores; and Commercial 

Africa, Rob progressed through various 

Director, Healthcare & Baby, Beauty and 

roles within the business, including 

operations, buying and supply chain. 

In 2001, Rob joined Cap Gemini Ernst 

Toiletries. In March 2014 Claire moved 

to Thailand to take up COO for Tesco 

Thailand, managing the responsibility 

& Young in Sydney where he specialised 

of over 3,000 stores. Claire holds a BSC 

in retail and supply chain transformation 

Hons in Economics and Sociology from 

across Asia. Following this, Rob joined 

Coles to work in its supply chain group 

the University of Loughborough, UK and 

has been a member of Chief Executive 

before moving into format transformation 

Women since 2017.

and supporting the supermarkets’ format 

turnaround under Wesfarmers ownership. 

Rob has also held senior roles at 

7-Eleven and Target prior to joining 

Woolworths Group in December 2015.

Spencer was appointed Managing 
Director of Woolworths New Zealand 
in March 2021. Prior to this, Spencer 
held the role of Managing Director 
Food at Woolworths Holdings Limited, 
South Africa, from 2015 to 2021, 
where he was responsible for the 
Groups’ Food Division across more 
than 400 supermarkets and 33,000 
team members. During this time 
he also served as a board member 
on the Consumer Goods Forum of 
South Africa. Spencer has a 25-year 
grocery career, starting out on a store 
management graduate program and 
progressing through a variety of roles, 
including operations, and has held 
various senior roles in commercial, 
buying and procurement in fresh and 
long-life food. He also led the food 
division’s entry into a new food service 
format. Spencer completed the General 
Management Program at Harvard 
Business School in 2015.

Steve has over 25 years’ experience 
in the retail industry and has a deep 
appreciation for core retail principles 
and a strong focus on the customer 
experience. He has held a broad 
range of roles in the Endeavour Drinks 
business since commencing as a store 
manager at Dan Murphy’s in 1994. 
Prior to being appointed the Managing 
Director of Endeavour Drinks in 2018, 
Steve gained broad experience across 
the Endeavour Drinks business, having 
held senior buying, merchandising and 
marketing roles at Dan Murphy’s and 
BWS. Earlier, Steve held the role of 
Director of Buying and Merchandising 
for Woolworths Supermarkets. Steve 
commenced as Chief Executive Officer 
of Endeavour Group effective 28 June 
2021 upon the separation of Endeavour 
Group from Woolworths Group. Steve 
ceased to be a member of Woolworths 
Group Executive Committee and Key 
Management Personnel on 28 July 
2021 upon the separation of Endeavour 
Group from Woolworths Group. 

Caryn Katsikogianis 

CHIEF PEOPLE OFFICER 

Pejman Okhovat

Bill Reid

MANAGING DIRECTOR OF BIG W

CHIEF LEGAL OFFICER

David Walker 
CHIEF RISK OFFICER

Colin Storrie 
MANAGING DIRECTOR GROUP PORTFOLIO 
(CEASED 28  JUNE 2021)

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Caryn Katsikogianis was appointed 

Chief People Officer in November 

Pejman Okhovat was appointed 

Managing Director of BIG W in April 

Bill joined Woolworths Group as Chief 

Legal Officer in October 2019. Prior 

2016, leading our Team First Strategy 

2021. Prior to joining the Group, Pejman 

to his appointment, Bill was a senior 

for Woolworths Group, including 

our focus on Team Experience, 

Holistic Wellbeing, Safety, Talent and 

Inclusion. Prior to this Caryn was the 

HR Director of the Woolworths Food 

was the Chief Operating Officer of 

New Zealand-based The Warehouse 

Group, having previously been the 

Chief Executive of The Warehouse 

value retailing business and Warehouse 

Group and General Manager Business 

Stationery brands, following joining the 

Transformation and held various senior 

Group in 2005. Pejman started his retail 

HR roles across BIG W, Supply Chain, 

career in the UK with Marks and Spencer 

and Group.

Caryn holds a Bachelor of Commerce 

degree from the University of South 

Africa. Caryn is an experienced HR 

leader with over 25 years' experience 

within the retail industry. Caryn has 

been a member of Chief Executive 

Women since 2017.

27 years ago, subsequently working for 

other well known UK retailers such as 

ASDA Walmart, Sainsbury's and Iceland 

across many regional, national and 

senior roles within operations, format 

development and category management. 

Pejman holds a BA Hons in Business 

Studies from Leeds Business School and 

has attended Insead’s AMP course.

Partner at Ashurst for many years, 

leading the firm’s Competition team, 

and in various management positions 

across Australia and Asia.   

Bill has long experience in responding 

to regulatory issues, litigation, and 

corporate transactions. Bill holds 

an MBA from Melbourne Business 

School and a Bachelor of Laws from 

the University of Adelaide.  

David Walker was appointed Chief 
Risk Officer for the Woolworths 
Group in November 2020. Prior to this 
appointment, David was the Managing 
Director of BIG W from November 
2016 and served as CEO of Masters 
Home Improvement for 10 months 
to November 2016.
David joined Woolworths Group 
in 1998 and has worked extensively 
in finance and business transformation, 
including Dick Smith Electronic and 
Woolworths Supply Chain. 
David is a member of Chartered 
Accountants Australia and New 
Zealand and prior to Woolworths 
Group he worked for Coopers and 
Lybrand for 10 years.

Colin Storrie has over 20 years’ 
experience in senior finance roles in 
listed companies, investment banking 
and government. Prior to Colin’s role as 
Managing Director Group Portfolio, he 
joined as Deputy Chief Financial Officer, 
Woolworths Group in 2015. Colin has 
also held group treasurer, deputy chief 
financial officer and chief financial 
officer positions at both Qantas 
Airways Ltd and AMP Ltd.
Colin Storrie ceased to be a member 
of the Group Executive Committee 
effective 28 June 2021 following his 
resignation from Woolworths Group.

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Notes:
Amitabh Mall was appointed 
Chief Analytics Officer and 
Managing Director of Q-Retail 
effective 1 July 2021.

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50

Directors’ Statutory Report

Directors’ Statutory Report

This is the report of the directors of Woolworths Group Limited (the Company) in respect of the Company and the entities 
it controlled at the end of, or during, the financial period ended 27 June 2021 (together referred to as the Group).

Environmental regulation

Principal activities
The Group operates primarily in Australia and New Zealand, with 3,418 stores and approximately 210,067 employees 
at year‑end. The principal activities of the Group during the year were retail operations across:
•  Australian Food: operating 1,076 Woolworths Supermarkets and Metro Food Stores.
•  New Zealand Food: operating 184 Countdown Supermarkets as well as a wholesale operation which supplies a further 71 stores.
•  BIG W: operating 176 BIG W stores.
•  Endeavour Group: operating 251 Dan Murphy’s and 1,392 BWS stores, as well as 339 hotels.
•  The Group also has eCommerce operations for its primary trading divisions.

On 18 June 2021, the Group obtained shareholder approval for the separation of Endeavour Group Limited, a subsidiary of 
the Group, which resulted in the discontinued operations of two separate major business lines, Endeavour Drinks and Hotels. 
Details of the Group’s reportable segments from discontinued operations are outlined in Note 5.2 to the financial statements. 

The Directors and meetings of Directors
The table below sets out the directors of the Company and their attendance at Board and Committee meetings during the 
financial period ended 27 June 2021.

BOARD MEETINGS

AUDIT & FINANCE 
COMMITTEE 3,5

PEOPLE
COMMITTEE 4,5

RISK 
COMMITTEE 6

SUSTAINABILITY 
COMMITTEE 3,5

NOMINATION 
COMMITTEE

paid for by the Company.

DIRECTOR

(A)

(B)

(A)

(B)

(A)

(B)

(A)

(B)

(A)

(B)

(A)

(B)

Non-executive Directors
G M Cairns
M N Brenner 2
J C Carr‑Smith 
H S Kramer
S L McKenna
S R Perkins
K A Tesija
M J Ullmer AO
J R Broadbent AC 1
Executive Director
B L Banducci

14
9
14
14
14
14
14
14
5

14

14
9
14
14
14
14
14
14
5

14

5
3
–
–
5
5
–
5
2

–

5
3
–
–
5
5
–
5
2

–

6
–
3
4
6
4
6
6
–

–

6
–
3
4
6
4
6
6
–

–

1
1
–
1
–
1
–
1
–

–

1
1
–
1
–
1
–
1
–

–

6
–
6
6
‑
2
6
4
4

–

6
–
6
6
‑
2
6
4
4

–

6
5
6
6
6
6
6
6
1

–

6
5
6
6
6
6
6
6
1

–

(A) Number of meetings eligible to attend. 

(B) Number of physical meetings attended.

Jillian Broadbent retired as a Director on 12 November 2020.
1 
2  Maxine Brenner was appointed as a Director on 1 December 2020.
3  Formerly the Audit, Risk & Compliance Committee.
4  Formerly the People Performance Committee.
5  Committee composition changed on 1 January 2021.
6  Risk Committee was established on 1 May 2021.

In F21, a Joint Committee meeting of all Committees was held. All respective Committee members and directors were present.

as outlined in Note 4.2 and Note 4.3 to the financial statements.

In addition to these formal meetings of the Board and its Committees, seven further unscheduled or special purpose 
Board Sub‑Committee meetings were held during the financial period ended 27 June 2021. Directors also attend meetings 
of Committees of which they are not a member. This is not reflected in the attendance table above. 

Details of director experience, qualifications and other listed company directorships are set out on page 44 and 45.

Company secretaries
Marcin Firek resigned as Company Secretary in November 2020.

Katrina Eastoe and Michelle Hall were appointed as Company Secretaries in November 2020. Together, Ms Eastoe and Ms 
Hall act as Company Secretaries of the Board and its Committees. Prior to being appointed as Group Company Secretary and 
Group Counsel, Ms Eastoe was General Counsel for Woolworths’ Australian Food Group, since 2018. She has over 20 years’ 
experience in senior leadership positions in legal and governance roles across media, FMCG and manufacturing industries in 
Australia, New Zealand and Asia‑Pacific. Ms Eastoe holds a Bachelor of Arts and a Bachelor of Laws, and a Graduate Diploma 
in Legal Practice. She is a Graduate of the Australian Institute of Company Directors. Ms Hall has over 15 years’ experience 
in legal, governance and compliance roles, including as company secretary of a number of ASX listed entities across financial 
services, property and retail industries. Ms Hall holds a Bachelor of Business and a Bachelor of Laws, and Graduate Diplomas 
in Legal Practice and Applied Corporate Governance. She is an associate of the Governance Institute of Australia.

51

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The Group’s operations are subject to a range of environmental regulations under the law of the Commonwealth of Australia 

and its states and territories. The Group is also subject to various state and local government food licensing requirements, 

and may be subject to environmental and town planning regulations incidental to the development of shopping centre sites. 

The Group has not incurred any significant liabilities under any environmental legislation.

Directors’ and officers’ indemnity/insurance

(i)  The Constitution of the Company provides that the Company will indemnify to the maximum extent permitted by law any 

current or former director, secretary or other officer of the Company or a wholly owned subsidiary of the Company against:

(a)  any liability incurred by the person in that capacity; 

(b) legal costs incurred in defending, or otherwise in connection with proceedings, whether civil, criminal or of an 

administrative or investigatory nature in which the person becomes involved because of that capacity; and 

(c)  legal costs incurred in good faith in obtaining legal advice on issues relevant to the performance of their functions and 

discharge of their duties.

(ii) Directors and officers of Woolworths Group Limited and certain subsidiaries have entered into a Deed of Indemnity, 

Access and Insurance that provides for indemnity against liability as a director or officer, except to the extent of indemnity 

under an insurance policy or where prohibited by statute. The Deed also entitles the director or officer to access company 

documents and records, subject to undertakings as to confidentiality, and to receive directors’ and officers’ insurance cover 

(iii) During or since the end of the financial period, the Company has paid or agreed to pay a premium in respect of a contract 

of insurance insuring directors and officers, and any persons who will insure these in the future, and employees of the 

Company and its subsidiaries, against certain liabilities incurred in that capacity. Disclosure of the total amount of the 

premiums and the nature of the liabilities in respect of such insurance is prohibited by the contract of insurance.

Non-audit services

During the period, Deloitte Touche Tohmatsu Australia, the Company’s auditor, has performed certain other services in addition 

to their statutory duties. The Board is satisfied that the provision of those non‑audit services during the period by the auditor 

is compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 (Cth) or as 

set out in Code of Conduct APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional & Ethical 

Standards Board, as they did not involve reviewing or auditing the auditor’s own work, acting in a management or decision 

making capacity for the Company, acting as an advocate for the Company or jointly sharing risks or rewards.

Details of amounts paid or payable to the auditor for non‑audit services provided during the year by the auditor are outlined 

in Note 6.3 to the financial statements.

Other information

The following information, contained in other sections of this Annual Report, forms part of this Directors’ Report:

•  Operating and Financial Review details on pages 2 to 41 inclusive in the Annual Report.

•  Details of dividends, including the Dividend Reinvestment Plan (DRP) and shares issued as a result of the DRP, 

•  Matters subsequent to the end of the financial period as outlined in Note 6.4 to the financial statements.

•  Directors’ interests in shares and performance rights as set out in Sections 5.2 and 5.3 of the Remuneration Report. 

•  Performance rights granted during the financial period and subsequent to year end as outlined in Note 6.2 to the 

These remain unchanged as at 30 July 2021.

financial statements.

•  Remuneration Report from pages 52 to 75.

•  Auditor’s Independence Declaration on page 76.

This Report is made in accordance with a Resolution of the Directors of the Company and is dated 26 August 2021.

Gordon Cairns 

Chairman

Brad Banducci 

Chief Executive Officer

 
 
 
 
 
 
 
 
50

Directors’ Statutory Report

Directors’ Statutory Report

51

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This is the report of the directors of Woolworths Group Limited (the Company) in respect of the Company and the entities 

it controlled at the end of, or during, the financial period ended 27 June 2021 (together referred to as the Group).

Principal activities

The Group operates primarily in Australia and New Zealand, with 3,418 stores and approximately 210,067 employees 

at year‑end. The principal activities of the Group during the year were retail operations across:

•  Australian Food: operating 1,076 Woolworths Supermarkets and Metro Food Stores.

•  New Zealand Food: operating 184 Countdown Supermarkets as well as a wholesale operation which supplies a further 71 stores.

•  BIG W: operating 176 BIG W stores.

•  Endeavour Group: operating 251 Dan Murphy’s and 1,392 BWS stores, as well as 339 hotels.

•  The Group also has eCommerce operations for its primary trading divisions.

On 18 June 2021, the Group obtained shareholder approval for the separation of Endeavour Group Limited, a subsidiary of 

the Group, which resulted in the discontinued operations of two separate major business lines, Endeavour Drinks and Hotels. 

Details of the Group’s reportable segments from discontinued operations are outlined in Note 5.2 to the financial statements. 

The Directors and meetings of Directors

The table below sets out the directors of the Company and their attendance at Board and Committee meetings during the 

financial period ended 27 June 2021.

DIRECTOR

(A)

(B)

(A)

(B)

(A)

(B)

(A)

(B)

(A)

(B)

(A)

(B)

BOARD MEETINGS

AUDIT & FINANCE 

COMMITTEE 3,5

PEOPLE

RISK 

COMMITTEE 4,5

COMMITTEE 6

SUSTAINABILITY 

COMMITTEE 3,5

NOMINATION 

COMMITTEE

Non-executive Directors

G M Cairns

M N Brenner 2

J C Carr‑Smith 

H S Kramer

S L McKenna

S R Perkins

K A Tesija

M J Ullmer AO

J R Broadbent AC 1

Executive Director

B L Banducci

14

9

14

14

14

14

14

14

5

14

14

9

14

14

14

14

14

14

5

14

5

3

–

–

5

5

–

5

2

–

5

3

–

–

5

5

–

5

2

–

6

–

3

4

6

4

6

6

–

–

6

–

3

4

6

4

6

6

–

–

1

1

–

1

–

1

–

1

–

–

1

1

–

1

–

1

–

1

–

–

6

–

6

6

‑

2

6

4

4

–

6

–

6

6

‑

2

6

4

4

–

6

5

6

6

6

6

6

6

1

–

6

5

6

6

6

6

6

6

1

–

(A) Number of meetings eligible to attend. 

(B) Number of physical meetings attended.

1 

Jillian Broadbent retired as a Director on 12 November 2020.

2  Maxine Brenner was appointed as a Director on 1 December 2020.

3  Formerly the Audit, Risk & Compliance Committee.

4  Formerly the People Performance Committee.

5  Committee composition changed on 1 January 2021.

6  Risk Committee was established on 1 May 2021.

Environmental regulation
The Group’s operations are subject to a range of environmental regulations under the law of the Commonwealth of Australia 
and its states and territories. The Group is also subject to various state and local government food licensing requirements, 
and may be subject to environmental and town planning regulations incidental to the development of shopping centre sites. 
The Group has not incurred any significant liabilities under any environmental legislation.

Directors’ and officers’ indemnity/insurance
(i)  The Constitution of the Company provides that the Company will indemnify to the maximum extent permitted by law any 
current or former director, secretary or other officer of the Company or a wholly owned subsidiary of the Company against:

(a)  any liability incurred by the person in that capacity; 

(b) legal costs incurred in defending, or otherwise in connection with proceedings, whether civil, criminal or of an 
administrative or investigatory nature in which the person becomes involved because of that capacity; and 

(c)  legal costs incurred in good faith in obtaining legal advice on issues relevant to the performance of their functions and 

discharge of their duties.

(ii) Directors and officers of Woolworths Group Limited and certain subsidiaries have entered into a Deed of Indemnity, 

Access and Insurance that provides for indemnity against liability as a director or officer, except to the extent of indemnity 
under an insurance policy or where prohibited by statute. The Deed also entitles the director or officer to access company 
documents and records, subject to undertakings as to confidentiality, and to receive directors’ and officers’ insurance cover 
paid for by the Company.

(iii) During or since the end of the financial period, the Company has paid or agreed to pay a premium in respect of a contract 
of insurance insuring directors and officers, and any persons who will insure these in the future, and employees of the 
Company and its subsidiaries, against certain liabilities incurred in that capacity. Disclosure of the total amount of the 
premiums and the nature of the liabilities in respect of such insurance is prohibited by the contract of insurance.

Non-audit services
During the period, Deloitte Touche Tohmatsu Australia, the Company’s auditor, has performed certain other services in addition 
to their statutory duties. The Board is satisfied that the provision of those non‑audit services during the period by the auditor 
is compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 (Cth) or as 
set out in Code of Conduct APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional & Ethical 
Standards Board, as they did not involve reviewing or auditing the auditor’s own work, acting in a management or decision 
making capacity for the Company, acting as an advocate for the Company or jointly sharing risks or rewards.

Details of amounts paid or payable to the auditor for non‑audit services provided during the year by the auditor are outlined 
in Note 6.3 to the financial statements.

Other information
The following information, contained in other sections of this Annual Report, forms part of this Directors’ Report:

•  Operating and Financial Review details on pages 2 to 41 inclusive in the Annual Report.

•  Details of dividends, including the Dividend Reinvestment Plan (DRP) and shares issued as a result of the DRP, 

In F21, a Joint Committee meeting of all Committees was held. All respective Committee members and directors were present.

as outlined in Note 4.2 and Note 4.3 to the financial statements.

In addition to these formal meetings of the Board and its Committees, seven further unscheduled or special purpose 

Board Sub‑Committee meetings were held during the financial period ended 27 June 2021. Directors also attend meetings 

of Committees of which they are not a member. This is not reflected in the attendance table above. 

Details of director experience, qualifications and other listed company directorships are set out on page 44 and 45.

•  Matters subsequent to the end of the financial period as outlined in Note 6.4 to the financial statements.

•  Directors’ interests in shares and performance rights as set out in Sections 5.2 and 5.3 of the Remuneration Report. 

These remain unchanged as at 30 July 2021.

•  Performance rights granted during the financial period and subsequent to year end as outlined in Note 6.2 to the 

Company secretaries

Marcin Firek resigned as Company Secretary in November 2020.

Katrina Eastoe and Michelle Hall were appointed as Company Secretaries in November 2020. Together, Ms Eastoe and Ms 

Hall act as Company Secretaries of the Board and its Committees. Prior to being appointed as Group Company Secretary and 

Group Counsel, Ms Eastoe was General Counsel for Woolworths’ Australian Food Group, since 2018. She has over 20 years’ 

experience in senior leadership positions in legal and governance roles across media, FMCG and manufacturing industries in 

Australia, New Zealand and Asia‑Pacific. Ms Eastoe holds a Bachelor of Arts and a Bachelor of Laws, and a Graduate Diploma 

in Legal Practice. She is a Graduate of the Australian Institute of Company Directors. Ms Hall has over 15 years’ experience 

in legal, governance and compliance roles, including as company secretary of a number of ASX listed entities across financial 

services, property and retail industries. Ms Hall holds a Bachelor of Business and a Bachelor of Laws, and Graduate Diplomas 

in Legal Practice and Applied Corporate Governance. She is an associate of the Governance Institute of Australia.

financial statements.

•  Remuneration Report from pages 52 to 75.

•  Auditor’s Independence Declaration on page 76.

This Report is made in accordance with a Resolution of the Directors of the Company and is dated 26 August 2021.

Gordon Cairns 
Chairman

Brad Banducci 
Chief Executive Officer

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52

Remuneration Report

Dear Shareholder,

As Chair of the renamed People Committee (PC or the 
Committee), I am pleased to present the F21 Remuneration 
Report and look forward to engaging with shareholders as 
the Committee undertakes its work. May I acknowledge 
my predecessor in the role, Holly Kramer, for the work 
she and the Committee have done to create and govern 
the Woolworths Group people management policies and 
remuneration framework so that they remain fit for purpose, 
provide a strong link between pay and performance, and are 
aligned to best practice in the broader Australian market. 

The uncertainties and challenges created by COVID-19 
continued throughout F21 and our team has played an 
important part in supporting our communities in Australia 
and New Zealand through various lockdowns. During 
F21 we continued to make progress on our six strategic 
priorities, including accelerating the growth of our digital 
and eCommerce platforms and demerging Endeavour 
Group Limited. We acknowledge that the achievements 
of F21 have required extraordinary efforts from the 
Woolworths Group team.

F21 Reward outcomes: STI
The business plan for F21, and the entry, target and stretch 
measures the Board set, recognised the potential for 
significant uncertainty and an ongoing and uneven impact 
from COVID-19. Lockdowns of varying durations continued 
to drive high levels of in-home consumption, which, together 
with strong execution of our trade plans, resulted in elevated 
trading during parts of the year. Sales from continuing and 
discontinued operations were $67,278 million, representing 
growth of 5.6%, which was an outcome substantially 
above stretch. Similarly, earnings before interest and taxes 
(EBIT) from continuing and discontinued operations before 
significant items of $3,663 million grew 13.7% to also exceed 
stretch. Trade Working Capital Days improved by 1.8 days, 
1.5 days ahead of budget, which was also a stretch result. 
Voice of Customer (VOC) Net Promoter Score (NPS) results 
were positive overall through a highly volatile and challenging 
year, landing between entry and target. We achieved 
a strong improvement in reducing customer injuries in F21, 
with the Customer Claims measure exceeding stretch. Total 
Recordable Injuries and Hours Lost for team both failed to 
meet entry. While disappointed in this outcome, we also 
recognise that it has been significantly impacted by COVID-19. 

The Board believes that the 115.5% scorecard result of 
between target and stretch and the resulting Short-Term 
Incentive (STI) outcome for F21 appropriately balances the 
impact of all these factors and reflects the team’s strong 
performance throughout this volatile year. 

F21 Reward outcomes: WISP
Awards made under the F19–21 Woolworths Incentive Share 
Plan (WISP) achieved an outcome of between target and 
stretch, resulting in 77.5% of the maximum performance rights 
vesting. Sales per square metre (Sales/sqm) improved in each 
year of the plan period to achieve a result of $18,294 in F21 
– driven in particular by strong sales growth in Australian Food 
and Endeavour Drinks – for an outcome close to stretch. Return 

on funds employed (ROFE) increased by 150 bps over the plan 
period, resulting in an outcome between entry and target, 
with EBIT over the period increasing at a faster rate than funds 
employed. The Board is also pleased with the substantial value 
that the team delivered to our shareholders over this period, 
achieving a Total Shareholder Return (TSR) of 61%, ranking 
Woolworths at the 89th percentile of our comparator group.

Management changes in F21
We continued to build management team strength during F21, 
developing our team, promoting diversity, and deepening our 
succession bench strength. Claire Peters, who was Managing 
Director of Woolworths Supermarkets for over three years 
until the end of September 2021, was appointed as Managing 
Director of B2B and Everyday Needs. After two years as 
Managing Director of Woolworths New Zealand, Natalie Davis 
returned to Australia in October 2021 and assumed the role 
of Managing Director of Woolworths Supermarkets.  

Executive Remuneration Framework Review
During F21 the Board reviewed the appropriateness of the 
executive remuneration framework, and identified two 
opportunities to strengthen alignment of the underlying 
performance measures with the Group’s strategic objectives. 
From F22, the Safety metric in the STI scorecard will evolve 
to a new broader measure – Severity Rate – which includes all 
team and customer injuries or illnesses (first aid through to lost 
time injuries, both physical and psychological) and events with 
potential for high severity. We will also introduce a Reputation 
measure in our Long-Term Incentive (LTI), replacing the 
Sales/sqm measure, which will operate alongside our financial 
performance measures of Relative TSR and ROFE. The Board 
believes that reputation is a key measure of the Group’s ability 
to deliver its strategy and be at our best for our customers, 
team, and communities. Sales/sqm will remain an important 
metric used by the Group, but has become less important 
as a Group performance measure given the move towards 
an ecosystem business. 

In summary
F21 was a year when the Group’s values came to life, with 
our team putting the needs and safety of our customers and 
communities first. The Group made progress on our strategy 
despite the disruption caused by COVID-19, and has taken 
further steps to build its food and everyday needs retail 
ecosystem with the announced investment in PFD (completed 
in F22), further investment in Quantium, and the launch of 
Healthy Life and PetCulture. Through the Endeavour Group 
demerger, the Board and management have focused on 
a smooth transition of remuneration arrangements so that 
executives remain aligned with delivery of the strategy and 
growth of shareholder value in both organisations. We look 
forward to ongoing dialogue with, and the support of, our 
shareholders in F22 as we deliver shareholder value and 
create better experiences together for a better tomorrow. 

Siobhan McKenna 
Chair – People Committee

53

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Remuneration Report 2021 

Table of Contents

2021 REMUNERATION AT A GLANCE

Our remuneration framework aligned to our strategic priorities 

F21 Executive KMP remuneration mix

How we performed and remuneration received 

1

2

EXECUTIVE KMP REMUNERATION

Short-Term Incentive

Long-Term Incentive

3

GOVERNANCE

Role of the Board

Role of the People Committee (PC)

Treatment of Unvested Equity Awards upon exit 

Other governance requirements 

4 NON–EXECUTIVE DIRECTORS’ ARRANGEMENTS

Non-executive Directors’ Remuneration Policy and Structure 

Non-executive Directors’ Minimum Shareholding Requirement

Non-executive Directors’ Equity Plan 

5

KMP STATUTORY DISCLOSURES

KMP Remuneration 

KMP Share right movements

KMP Share movements

Share rights outstanding for Executive KMP 

What we paid Executive KMP in F21 and progress on Minimum Shareholding Requirements

Terms of Executive KMP Service Agreements

Remuneration Framework changes for F22

54

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61

64

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69

69

69

70

72

73

74

The report has been prepared and audited against the disclosure requirements of the Corporations Act 2001 (Cth).

Who is covered by this Report?

The Remuneration Report outlines Woolworths Group’s remuneration framework and the outcomes for the year 

ended 27 June 2021 for our Key Management Personnel (KMP). KMP have the authority and responsibility for 

planning, directing and controlling the activities of Woolworths Group. F21 KMP are:

NAME

POSITION

APPOINTED PEOPLE COMMITTEE

Jillian Broadbent AC Non-executive Director

28 January 2011 to 12 November 2020

Gordon Cairns

Chairman

Maxine Brenner

Non-executive Director

Jennifer Carr-Smith  Non-executive Director

d

r

a

o

B

Holly Kramer

Non-executive Director

Siobhan McKenna Non-executive Director

Scott Perkins 3

Non-executive Director

Kathryn Tesija

Non-executive Director

Michael Ullmer AO Non-executive Director

Brad Banducci

Chief Executive Officer

–

–

–

Chair 1

Chair 2

1 September 2015

1 December 2020

17 May 2019

8 February 2016

8 February 2016

1 September 2014

9 May 2016

30 January 2012

26 February 2016

1 April 2018

1 August 2019

September 2020 

Natalie Davis 4

Managing Director, Woolworths Supermarkets

1 October 2020

Stephen Donohue Managing Director, Endeavour Drinks

Stephen Harrison

Chief Financial Officer

Claire Peters 5

Managing Director, Woolworths Supermarkets

13 June 2017 to 30 

1  Ms Kramer was Chair and a member of the People Committee until 31 December 2020.

2  Ms McKenna was appointed Chair of the People Committee from 1 January 2021.

3  Mr Perkins was a member of the People Committee until 31 December 2020.

4  Ms Davis became a KMP on 1 October 2020 when she was appointed Managing Director, Woolworths Supermarkets.

5  Ms Peters was Managing Director, Woolworths Supermarkets until 30 September 2020, after which she ceased to be a KMP.

1.1

1.2

1.3

2.1

2.2

2.3

2.4

2.5

3.1

3.2

3.3

3.4

4.1

4.2

4.3

5.1

5.2

5.3

5.4

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52

Remuneration Report

Dear Shareholder,

As Chair of the renamed People Committee (PC or the 

Committee), I am pleased to present the F21 Remuneration 

Report and look forward to engaging with shareholders as 

the Committee undertakes its work. May I acknowledge 

my predecessor in the role, Holly Kramer, for the work 

she and the Committee have done to create and govern 

the Woolworths Group people management policies and 

remuneration framework so that they remain fit for purpose, 

provide a strong link between pay and performance, and are 

aligned to best practice in the broader Australian market. 

The uncertainties and challenges created by COVID-19 

continued throughout F21 and our team has played an 

important part in supporting our communities in Australia 

and New Zealand through various lockdowns. During 

F21 we continued to make progress on our six strategic 

priorities, including accelerating the growth of our digital 

and eCommerce platforms and demerging Endeavour 

Group Limited. We acknowledge that the achievements 

of F21 have required extraordinary efforts from the 

Woolworths Group team.

F21 Reward outcomes: STI

The business plan for F21, and the entry, target and stretch 

measures the Board set, recognised the potential for 

significant uncertainty and an ongoing and uneven impact 

from COVID-19. Lockdowns of varying durations continued 

to drive high levels of in-home consumption, which, together 

with strong execution of our trade plans, resulted in elevated 

trading during parts of the year. Sales from continuing and 

discontinued operations were $67,278 million, representing 

growth of 5.6%, which was an outcome substantially 

above stretch. Similarly, earnings before interest and taxes 

(EBIT) from continuing and discontinued operations before 

significant items of $3,663 million grew 13.7% to also exceed 

stretch. Trade Working Capital Days improved by 1.8 days, 

1.5 days ahead of budget, which was also a stretch result. 

Voice of Customer (VOC) Net Promoter Score (NPS) results 

were positive overall through a highly volatile and challenging 

year, landing between entry and target. We achieved 

a strong improvement in reducing customer injuries in F21, 

with the Customer Claims measure exceeding stretch. Total 

Recordable Injuries and Hours Lost for team both failed to 

meet entry. While disappointed in this outcome, we also 

recognise that it has been significantly impacted by COVID-19. 

The Board believes that the 115.5% scorecard result of 

between target and stretch and the resulting Short-Term 

Incentive (STI) outcome for F21 appropriately balances the 

impact of all these factors and reflects the team’s strong 

performance throughout this volatile year. 

F21 Reward outcomes: WISP

Awards made under the F19–21 Woolworths Incentive Share 

Plan (WISP) achieved an outcome of between target and 

stretch, resulting in 77.5% of the maximum performance rights 

vesting. Sales per square metre (Sales/sqm) improved in each 

year of the plan period to achieve a result of $18,294 in F21 

on funds employed (ROFE) increased by 150 bps over the plan 

period, resulting in an outcome between entry and target, 

with EBIT over the period increasing at a faster rate than funds 

employed. The Board is also pleased with the substantial value 

that the team delivered to our shareholders over this period, 

achieving a Total Shareholder Return (TSR) of 61%, ranking 

Woolworths at the 89th percentile of our comparator group.

Management changes in F21

We continued to build management team strength during F21, 

developing our team, promoting diversity, and deepening our 

succession bench strength. Claire Peters, who was Managing 

Director of Woolworths Supermarkets for over three years 

until the end of September 2021, was appointed as Managing 

Director of B2B and Everyday Needs. After two years as 

Managing Director of Woolworths New Zealand, Natalie Davis 

returned to Australia in October 2021 and assumed the role 

of Managing Director of Woolworths Supermarkets.  

Executive Remuneration Framework Review

During F21 the Board reviewed the appropriateness of the 

executive remuneration framework, and identified two 

opportunities to strengthen alignment of the underlying 

performance measures with the Group’s strategic objectives. 

From F22, the Safety metric in the STI scorecard will evolve 

to a new broader measure – Severity Rate – which includes all 

team and customer injuries or illnesses (first aid through to lost 

time injuries, both physical and psychological) and events with 

potential for high severity. We will also introduce a Reputation 

measure in our Long-Term Incentive (LTI), replacing the 

Sales/sqm measure, which will operate alongside our financial 

performance measures of Relative TSR and ROFE. The Board 

believes that reputation is a key measure of the Group’s ability 

to deliver its strategy and be at our best for our customers, 

team, and communities. Sales/sqm will remain an important 

metric used by the Group, but has become less important 

as a Group performance measure given the move towards 

an ecosystem business. 

In summary

F21 was a year when the Group’s values came to life, with 

our team putting the needs and safety of our customers and 

communities first. The Group made progress on our strategy 

despite the disruption caused by COVID-19, and has taken 

further steps to build its food and everyday needs retail 

ecosystem with the announced investment in PFD (completed 

in F22), further investment in Quantium, and the launch of 

Healthy Life and PetCulture. Through the Endeavour Group 

demerger, the Board and management have focused on 

a smooth transition of remuneration arrangements so that 

executives remain aligned with delivery of the strategy and 

growth of shareholder value in both organisations. We look 

forward to ongoing dialogue with, and the support of, our 

shareholders in F22 as we deliver shareholder value and 

create better experiences together for a better tomorrow. 

– driven in particular by strong sales growth in Australian Food 

Siobhan McKenna 

and Endeavour Drinks – for an outcome close to stretch. Return 

Chair – People Committee

Remuneration Report 2021 
Table of Contents

1

2

3

2021 REMUNERATION AT A GLANCE

1.1
1.2
1.3

Our remuneration framework aligned to our strategic priorities 
F21 Executive KMP remuneration mix
How we performed and remuneration received 

EXECUTIVE KMP REMUNERATION
Short-Term Incentive
Long-Term Incentive
What we paid Executive KMP in F21 and progress on Minimum Shareholding Requirements
Terms of Executive KMP Service Agreements
Remuneration Framework changes for F22

2.1
2.2
2.3
2.4
2.5

GOVERNANCE
3.1
3.2
3.3
3.4

Role of the Board
Role of the People Committee (PC)
Treatment of Unvested Equity Awards upon exit 
Other governance requirements 

4 NON–EXECUTIVE DIRECTORS’ ARRANGEMENTS

4.1
4.2
4.3

Non-executive Directors’ Remuneration Policy and Structure 
Non-executive Directors’ Minimum Shareholding Requirement
Non-executive Directors’ Equity Plan 

5

KMP STATUTORY DISCLOSURES

5.1
5.2
5.3
5.4

KMP Remuneration 
KMP Share right movements
KMP Share movements
Share rights outstanding for Executive KMP 

54
55
56

57
59
61
64
64

66
66
67
68

69
69
69

70
72
73
74

The report has been prepared and audited against the disclosure requirements of the Corporations Act 2001 (Cth).

Who is covered by this Report?
The Remuneration Report outlines Woolworths Group’s remuneration framework and the outcomes for the year 
ended 27 June 2021 for our Key Management Personnel (KMP). KMP have the authority and responsibility for 
planning, directing and controlling the activities of Woolworths Group. F21 KMP are:

NAME

POSITION

APPOINTED PEOPLE COMMITTEE

Gordon Cairns

Chairman

1 September 2015

53

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1 December 2020
28 January 2011 to 12 November 2020

–
–

Chair 1
Chair 2
–

5

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Maxine Brenner

Non-executive Director

Jillian Broadbent AC Non-executive Director

Jennifer Carr-Smith  Non-executive Director

d
r
a
o
B

Holly Kramer

Non-executive Director

Siobhan McKenna Non-executive Director

Scott Perkins 3

Non-executive Director

Kathryn Tesija

Non-executive Director

Michael Ullmer AO Non-executive Director

Brad Banducci

Chief Executive Officer

Natalie Davis 4

Managing Director, Woolworths Supermarkets

Stephen Donohue Managing Director, Endeavour Drinks

Stephen Harrison

Chief Financial Officer

Claire Peters 5

Managing Director, Woolworths Supermarkets

P
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17 May 2019

8 February 2016

8 February 2016

1 September 2014

9 May 2016

30 January 2012

26 February 2016
1 October 2020

1 April 2018

1 August 2019

13 June 2017 to 30 
September 2020 

1  Ms Kramer was Chair and a member of the People Committee until 31 December 2020.
2  Ms McKenna was appointed Chair of the People Committee from 1 January 2021.
3  Mr Perkins was a member of the People Committee until 31 December 2020.
4  Ms Davis became a KMP on 1 October 2020 when she was appointed Managing Director, Woolworths Supermarkets.
5  Ms Peters was Managing Director, Woolworths Supermarkets until 30 September 2020, after which she ceased to be a KMP.

 
 
 
 
 
 
 
 
 
 
54

1 2021 REMUNERATION AT A GLANCE

1.1 

OUR REMUNERATION FRAMEWORK ALIGNED TO OUR STRATEGIC PRIORITIES

Our remuneration framework is designed to support Woolworths Group’s strategic priorities. We have a clear set 
of principles which guide our remuneration decisions and design. As we operate in a dynamic and rapidly evolving 
market, we revisit our approach to remuneration on a regular basis so that we are aligned to market expectations 
and business objectives.

Strategic priorities

Our purpose: We create better experiences together for a better tomorrow

Better together for 
a better tomorrow 
for our customers, 
teams, and 
communities

Accelerate 
digital, eCom and 
convenience for 
our increasingly 
connected 
customers

Differentiate our 
food customer 
propositions

Stand-up 
Endeavour Group

Evolve our portfolio 
and build strong 
adjacencies

Keep our business 
COVIDSafe and 
future proof our E2E 
operating model

Remuneration principles

Objective: Support Business Transformation 

Reinforce our 
purpose, customer 
1st team 1st strategy 
and Ways-of-Working

Build the retailer of the 
future by attracting, 
retaining and motivating 
team members with 
diverse skills, capabilities 
and backgrounds

Encourage our team 
members to think and 
behave like owners

Drive short and 
long-term performance 
consistent with our 
risk appetite

Be simple and easily 
understood

Remuneration governance

In delivering the remuneration outcomes to team members, the Board may apply discretion so that it effectively delivers 
appropriate outcomes for our shareholders, customers and team. In considering whether discretion is required, the Board 
reviews PC recommendations based on the CEO’s proposal for performance and incentive outcomes. This discretion 
review incorporates advice from the Chief Risk Officer, Chief Legal Officer, Chief People Officer, and Head of Internal 
Audit, as well as consultation with Committee Chairs and all Directors.

54

1 2021 REMUNERATION AT A GLANCE

2021 REMUNERATION  

AT A GLANCE 1

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1.1 

OUR REMUNERATION FRAMEWORK ALIGNED TO OUR STRATEGIC PRIORITIES

1.1 

OUR REMUNERATION FRAMEWORK ALIGNED TO OUR STRATEGIC PRIORITIES (CONTINUED)

Our remuneration framework is designed to support Woolworths Group’s strategic priorities. We have a clear set 

of principles which guide our remuneration decisions and design. As we operate in a dynamic and rapidly evolving 

market, we revisit our approach to remuneration on a regular basis so that we are aligned to market expectations 

and business objectives.

Strategic priorities

Our purpose: We create better experiences together for a better tomorrow

Better together for 

a better tomorrow 

for our customers, 

teams, and 

communities

Accelerate 

digital, eCom and 

convenience for 

our increasingly 

connected 

customers

Differentiate our 

food customer 

propositions

Stand-up 

Endeavour Group

Evolve our portfolio 

and build strong 

adjacencies

Keep our business 

COVIDSafe and 

future proof our E2E 

operating model

Remuneration principles

Objective: Support Business Transformation 

F21 Remuneration framework

Our Remuneration Framework Supports the Group Strategy

Total Fixed Remuneration 
(TFR)

Short‑Term Incentive  
(STI)

TFR consists of Base Salary, 
Superannuation and Car Allowance 

TFR is set in relation to the 
external market and considers:
•  Strategic value of the role.
•  Size and complexity of the role.
•  Individual responsibilities.
•  Experience and skills.

TFR is positioned so that Total 
Target Remuneration (TTR) is 
around median of our Comparator 
Group, which includes the ASX25 
plus additional reference as required 
to major national and international 
retailers. Generally, executives who 
are new to role will start on a TTR 
package below median, and move 
up to median as they develop skills 
and experience in the role.

50% of the STI is delivered in 
cash and the remaining 50% 
is deferred in share rights for 
two years

Business performance is 
measured through a STI balanced 
scorecard, with 60% weighted 
on financial objectives and 40% 
on non-financial objectives:
•  Sales (20%). 
•  Earnings Before Interest and 

Tax (EBIT) (20%).

•  Working Capital Days (20%).
•  Customer Satisfaction (20%).
•  Safety (20%).

Individual performance 
includes assessment against 
business, strategic and 
Ways-of-Working goals and 
Core Values.

Long‑Term Incentive  
(LTI)

Performance rights vesting 
subject to performance 
progress over three years 

The LTI aligns executives to 
overall company performance 
through three equally weighted 
measures focused on strategic 
business drivers and long-term 
shareholder return:
•  Relative Total Shareholder 

Return (rTSR). 

•  Sales Per Square Metre 

(Sales/sqm).

•  Return on Funds Employed 

(ROFE).

Reinforce our 

purpose, customer 

1st team 1st strategy 

and Ways-of-Working

Build the retailer of the 

future by attracting, 

retaining and motivating 

team members with 

diverse skills, capabilities 

and backgrounds

Encourage our team 

members to think and 

behave like owners

Drive short and 

long-term performance 

consistent with our 

risk appetite

Be simple and easily 

understood

What is the 
remuneration mix 
for Executive KMP?

The remuneration mix for Executive KMP is weighted towards variable remuneration. 
In the Total Target Mix, 67% of the remuneration is performance-based pay, and 50% 
of TTR is delivered in equity. 

1.2 

F21 EXECUTIVE KMP REMUNERATION MIX

Remuneration governance

In delivering the remuneration outcomes to team members, the Board may apply discretion so that it effectively delivers 

appropriate outcomes for our shareholders, customers and team. In considering whether discretion is required, the Board 

reviews PC recommendations based on the CEO’s proposal for performance and incentive outcomes. This discretion 

review incorporates advice from the Chief Risk Officer, Chief Legal Officer, Chief People Officer, and Head of Internal 

Audit, as well as consultation with Committee Chairs and all Directors.

TOTAL TARGET MIX

Total Fixed  
Remuneration 33.4%

TOTAL MAXIMUM MIX

Total Fixed 
Remuneration 23.8%

Performance based

Target STI 33.3% (100% of TFR)

Target LTI 33.3% (100% of TFR)

Cash 
16.65%

Deferred
16.65%

rTSR with 
11.1%

Sales/sqm  
11.1%

ROFE 
11.1%

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Performance based

Maximum STI 35.7% (150% of TFR)

Maximum LTI 40.5% (170% of TFR)

Cash 
17.86%

Deferred
17.86%

rTSR with 
13.5%

Sales/sqm
13.5%

ROFE 
13.5%

1

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56

Remuneration Report

1.3 

HOW WE PERFORMED AND REMUNERATION RECEIVED 

Group five‑year 
performance summary 

The remuneration outcomes for our Executive KMP vary with short-term and long-term 
performance outcomes. The graphs and table below show Executive KMP remuneration 
outcomes and the Group’s core financial performance measures over the past five years.

Short‑term measures

Sales 
$M

EBIT 1  
$M

Long‑term measures

Annualised TSR 2 
% GROUP

ROFE 3 
% GROUP

Sales/sqm 
$

8
7
2
7
6

8
7
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8
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6

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F:
F:
F:

17
17
17

18
18
F:
18
F:

19
19
17
19
17

20
20
18
20
18

21
21
19
21
19

20
20

F:
F:
F:
21
21

17
17
17

18
18
F:
18
F:

19
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17

20
20
18
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21
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F:
F:
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17
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F:
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F:
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17
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F:
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17
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19
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18
18

20
20
20
19
19

21
21
21
20
20

21
21

¢ 
¢ 

 Sales per square metre (Australian Food) 
 Sales per square metre (Endeavour Drinks)

STI and LTI outcomes
STI (% of Target)
LTI (% of Maximum)
Woolworths Group ordinary share price closing ($)

F17

109.8
Nil
25.36

F18

91.2
Nil
29.96

F19

68.1
78.4
33.23

F20

70.0
64.3
36.39

F21

115.5
77.5
42.88 4

1 

From continuing and discontinued operations and before significant items. For F21 EBIT significant items were a net gain of $59 million, including 
net gain on acquisition of a majority share of Quantium ($221 million), costs on Endeavour Group demerger and PFD acquisition ($68 million), 
strategic decisions related to Supply Chain restructure ($44 million) and Metro Food Stores impairments ($50 million). 

2  Annualised TSR is point to point TSR for the financial year.
3  Group ROFE is defined on page 59. The F21 outcome of 15.4% differs from the Group reported ROFE of 16.6% following adjustment to exclude the 

demerger distribution liability, the impact of the acquisition of Quantium, and Endeavour Group corporate costs. 

4  The sum of the closing share prices of Woolworths Group ($36.78) and Endeavour Group ($6.10) on the last trading day of Woolworths Group’s 

financial year (25 June 2021). Endeavour Group shares commenced trading on a conditional basis on 24 June 2021.

F21 Executive KMP 

The table below presents the remuneration actually paid to, or vested for, Executive KMP in F21.

EXECUTIVE KMP

Brad Banducci
Chief Executive Officer
Natalie Davis 3 Managing Director, 
Woolworths Supermarkets
Stephen Donohue
Managing Director, Endeavour Drinks
Stephen Harrison
Chief Financial Officer
Claire Peters 4 Managing Director, 
Woolworths Supermarkets

TOTAL FIXED 
REMUNERATION 

RELOCATION 1
AND OTHER 
BENEFITS

F21
CASH STI

VESTED F19 2 
DEFERRED STI

VESTED 2 
F19–21 LTI

TOTAL

2,600,000

4,421

1,651,650 1,355,578 5,210,060

10,821,709

714,319

44,548

407,813

170,486

454,301

1,791,467

962,000

4,421

611,111

410,329 2,004,749

3,992,610

900,001

4,421

519,750

0 1,254,228

2,678,400

325,000

140,430

187,688

385,094 2,031,873

3,070,085

1  Relocation and other benefits include the deemed premium in respect of Directors and Officers Indemnity Insurance. In relation to Ms Davis and 

Ms Peters, it also includes relocation benefits and associated fringe benefits tax.

2  Vested F19 Deferred STI and Vested F19-21 LTI is based on the five-day Volume Weighted Average Price of Woolworths Group shares up to and 

including 1 July 2021 ($37.6069).

3  Ms Davis was appointed Managing Director, Woolworths Supermarkets and became Executive KMP on 1 October 2020. Disclosed remuneration reflects 
remuneration earned from 1 October 2020. Total Fixed Remuneration, Relocation and other benefits, and F21 Cash STI represent nine of the 12 months 
in F21. Vested F19 Deferred STI is nine of the 24 months deferral period, and vested F19–21 LTI represents nine of the 36 months of the F19–21 plan.

4  Ms Peters was Managing Director, Woolworths Supermarkets until 30 September 2020, after which she commenced a new role, which is not recognised 

as Executive KMP. Disclosed remuneration reflects remuneration earned to 30 September 2020. Total Fixed Remuneration, Relocation and other 
benefits, and F21 Cash STI represent three of the 12 months in F21. Vested F19 Deferred STI is 15 of the 24 months deferral period, and vested F19–21 LTI 
represents 27 of the 36 months of the F19–21 plan.

Further detail of individual remuneration outcomes is provided on pages 61 to 63 of this report.

 
56

Remuneration Report

57

A
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1.3 

HOW WE PERFORMED AND REMUNERATION RECEIVED 

2 EXECUTIVE KMP REMUNERATION

Group five‑year 

performance summary 

The remuneration outcomes for our Executive KMP vary with short-term and long-term 

performance outcomes. The graphs and table below show Executive KMP remuneration 

outcomes and the Group’s core financial performance measures over the past five years.

Short‑term measures

Sales 

$M

EBIT 1  

$M

Long‑term measures

Annualised TSR 2 

% GROUP

ROFE 3 

% GROUP

Sales/sqm 

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AASB 16

AASB 16

AASB 16

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AASB 16

AASB 16

AASB 16

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¢ 

¢ 

 Sales per square metre (Australian Food) 

 Sales per square metre (Endeavour Drinks)

F:

F:

F:

17

17

17

F:

18

F:

18

18

17

17

19

19

19

18

18

20

20

20

19

19

21

21

21

20

20

F:

F:

21

F:

21

17

17

17

F:

18

F:

18

18

17

17

19

19

19

18

18

20

20

20

19

19

21

21

21

20

20

21

21

F:

F:

F:

17

17

17

F:

18

F:

18

18

17

17

19

19

19

18

18

20

20

20

19

19

21

21

21

20

20

F:

F:

21

F:

21

17

17

17

F:

18

F:

18

18

17

17

19

19

19

18

18

20

20

20

19

19

21

21

21

20

20

F:

F:

F:

21

21

17

17

17

F:

F:

18

18

18

17

17

19

19

19

18

18

20

20

20

19

19

21

21

21

20

20

21

21

STI and LTI outcomes

STI (% of Target)

LTI (% of Maximum)

Woolworths Group ordinary share price closing ($)

F17

109.8

Nil

25.36

F18

91.2

Nil

29.96

F19

68.1

78.4

33.23

F20

70.0

64.3

36.39

F21

115.5

77.5

42.88 4

1 

From continuing and discontinued operations and before significant items. For F21 EBIT significant items were a net gain of $59 million, including 

net gain on acquisition of a majority share of Quantium ($221 million), costs on Endeavour Group demerger and PFD acquisition ($68 million), 

strategic decisions related to Supply Chain restructure ($44 million) and Metro Food Stores impairments ($50 million). 

2  Annualised TSR is point to point TSR for the financial year.

3  Group ROFE is defined on page 59. The F21 outcome of 15.4% differs from the Group reported ROFE of 16.6% following adjustment to exclude the 

demerger distribution liability, the impact of the acquisition of Quantium, and Endeavour Group corporate costs. 

4  The sum of the closing share prices of Woolworths Group ($36.78) and Endeavour Group ($6.10) on the last trading day of Woolworths Group’s 

financial year (25 June 2021). Endeavour Group shares commenced trading on a conditional basis on 24 June 2021.

F21 Executive KMP 

The table below presents the remuneration actually paid to, or vested for, Executive KMP in F21.

TOTAL FIXED 

REMUNERATION 

RELOCATION 1

AND OTHER 

BENEFITS

F21

VESTED F19 2 

CASH STI

DEFERRED STI

VESTED 2 

F19–21 LTI

TOTAL

EXECUTIVE KMP

Brad Banducci

Chief Executive Officer

Natalie Davis 3 Managing Director, 

Woolworths Supermarkets

Stephen Donohue

Stephen Harrison

Chief Financial Officer

Claire Peters 4 Managing Director, 

Woolworths Supermarkets

2,600,000

4,421

1,651,650 1,355,578 5,210,060

10,821,709

714,319

44,548

407,813

170,486

454,301

1,791,467

Managing Director, Endeavour Drinks

962,000

4,421

611,111

410,329 2,004,749

3,992,610

900,001

4,421

519,750

0 1,254,228

2,678,400

325,000

140,430

187,688

385,094 2,031,873

3,070,085

1  Relocation and other benefits include the deemed premium in respect of Directors and Officers Indemnity Insurance. In relation to Ms Davis and 

Ms Peters, it also includes relocation benefits and associated fringe benefits tax.

2  Vested F19 Deferred STI and Vested F19-21 LTI is based on the five-day Volume Weighted Average Price of Woolworths Group shares up to and 

including 1 July 2021 ($37.6069).

3  Ms Davis was appointed Managing Director, Woolworths Supermarkets and became Executive KMP on 1 October 2020. Disclosed remuneration reflects 

remuneration earned from 1 October 2020. Total Fixed Remuneration, Relocation and other benefits, and F21 Cash STI represent nine of the 12 months 

in F21. Vested F19 Deferred STI is nine of the 24 months deferral period, and vested F19–21 LTI represents nine of the 36 months of the F19–21 plan.

4  Ms Peters was Managing Director, Woolworths Supermarkets until 30 September 2020, after which she commenced a new role, which is not recognised 

as Executive KMP. Disclosed remuneration reflects remuneration earned to 30 September 2020. Total Fixed Remuneration, Relocation and other 

benefits, and F21 Cash STI represent three of the 12 months in F21. Vested F19 Deferred STI is 15 of the 24 months deferral period, and vested F19–21 LTI 

represents 27 of the 36 months of the F19–21 plan.

Further detail of individual remuneration outcomes is provided on pages 61 to 63 of this report.

2.1 

SHORT-TERM INCENTIVE 

Our approach and rationale: F21 Short-Term Incentive

We believe that alignment of our STI arrangements from the CEO through to our store teams is a key symbol of our Customer 1st 
Team 1st Brand and Culture approach to transforming our business. Individual STI outcomes reflect business performance against 
the STI scorecard and individual contribution to these results, including our Ways-of-Working and Core Values. The Board 
also reviews executive behaviour and any malus policy considerations when determining STI outcomes for Executive KMP. All 
measures and targets are reviewed annually so that STI drives the right outcomes each year. Intended changes for the F22 plan 
are set out in section 2.5.

Assessing business performance:
The STI balanced scorecard includes a mix of metrics, with 
60% weighting on financial metrics and 40% weighting on 
non-financial metrics. Five equally weighted business scorecard 
measures drive outcomes for shareholders, customers and 
our team:

¢  Sales 
¢  EBIT 

¢  Working Capital Days
¢   Customer Satisfaction 
¢  Safety  
plus individual performance

Customer Satisfaction
Our strategy is underpinned by great customer experiences and 
success is dependent on us delivering convenient ways to shop 
and competitive prices for our customers so they continue 
to choose us over our competitors. Our online platforms are 
key to delivering new and improved ways customers can shop 
with us. Customer feedback measures include Net Promoter 
Score (NPS) to better measure progress against our ambition 
to deliver better shopping experiences. We use Voice of 
Customer (VOC) and NPS methodology weighted 30% to our 
eCommerce customers and 70% to our in-store customers 
to measure overall customer satisfaction.

Safety 
We are a people business and the safety of our team and 
customers is of great importance. Safety performance is 
measured using three equally weighted measures, which includes 
improvement in: (i) customer claims; (ii) total recordable (team 
member) injuries; and (iii) hours lost. We measure the number 
of injuries as opposed to frequency rates so that our measures 
are easier to understand and communicate. Hours lost are 
included in the overall safety performance to help us understand 
both the frequency and severity of injuries.

Sales, EBIT and Working Capital Days
It is critical for the sustainability of our business to constantly 
work towards improving all elements of our financial 
performance, including the productivity of store selling 
space, the efficiency of our stores, supply chain and overall 
management of costs and the effective management of 
inventory and working capital. Sales, EBIT and Working Capital 
performance are all key financial performance metrics used 
to measure the creation of value for our shareholders.

Assessing individual performance:
Two equally weighted categories of goals are used 
to review performance:
•  Business strategy and performance goals 

that capture how individuals contribute to the 
performance of the business during the year, 
and their contribution to initiatives that will 
transform our business for the future.

•  Ways-of-Working and people goals that capture 
how business strategy and performance goals 
have been delivered, and how leaders set their 
teams up for success.

The Board also has discretion to adjust the vesting 
of Deferred STI (DSTI) for individuals, which may 
be reduced (including to zero) for cases of behaviour 
inconsistent with our Ways-of-Working or Core 
Values (see malus policy on page 68). These would 
be the most serious of cases that would not have been 
adequately dealt with through normal performance 
management or consequence frameworks.

100% of STI target for target performance.
150% of STI target for stretch performance.

Delivering STI outcomes:
Depending on business and individual performance:
•  Zero for below entry performance.
•  50% of STI target for entry performance.
• 
• 
This gives the Board sufficient opportunity to 
vary STI outcomes so they reflect differing levels 
of performance. The Board also has discretion 
to vary STI awards due to factors that are beyond 
these performance measures so that rewards 
appropriately reflect complete performance.
Group Executive STI awards are delivered:
•  50% as cash; and
•  50% deferred in share rights for two years.
The 50% deferred component supports increased 
share ownership, facilitates retention, and is a risk 
management lever to facilitate malus policy 
application during the deferral period.

1

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58

Remuneration Report

2.1 

SHORT TERM INCENTIVE (CONTINUED)

Performance against: F21 STI measures 

The scorecard performance outcome for F21 was 115.5% of target. 

F21 performance 
against the STI 
scorecard was 
above target.
115.5% of Target 
77.0% of Max

F21 ACTUAL PERFORMANCE

Stretch

%
0
5
1

%
0
5
1

%
0
5
1

%
0
5
1

Target

Entry

l

s
e
a
S

I

T
B
E

%
5
7
7

.

r
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m
o
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s
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n
o
i
t
c
a
f
s
i
t
a
S

g
n
i
k
r
o
W

s
y
a
D

l

a
t
i
p
a
C

Sales 1
Sales from continuing and discontinued operations was $67,278 million, representing growth of 5.7%, and 
two-year average growth of 7.1% 2. Sales growth in excess of Stretch was achieved in all businesses apart 
from NZ Food, with sales growth as follows: Australian Food 5.6%; Endeavour Drinks 9.9%; NZ Food -0.6% 
(NZD); BIG W 11.6% and Hotels 7.3%. Growth was impacted both by elevated in-home consumption in 
response to COVID-19 restrictions for our Food and Drinks businesses, despite cycling the significant 
growth of H2 F20, and strong trading performance. Overall performance was above Stretch for F21.

ENTRY: $63.9BN

TARGET: $64.8BN

STRETCH: $65.6BN

ACTUAL F21: $67.2BN 1

Sales is the revenue from the sale of goods and services, excluding other operating revenue.

1 
2  Two-year average sales growth excludes Petrol, which was sold in 2019.

Earnings Before Interest and Tax 3
EBIT from continuing and discontinued operations before significant items was $3,663 million, 
representing growth of 13.7%. Outperformance was delivered across all business units apart from New 
Zealand Food, with flow-through from strong top-line achieved despite significant COVID-19 costs incurred 
through the year. Overall performance was above Stretch for F21.

ENTRY: $3.25BN

TARGET: $3.32BN

STRETCH: $3.38BN

ACTUAL F21: $3.66BN

3  Significant items not included in this measure were a net gain of $59 million, including a net gain on 
acquisition of a majority share of Quantium ($221 million), costs on Endeavour Group demerger and 
PFD acquisition ($68 million), strategic decisions related to Supply Chain restructure ($44 million) and 
Metro Food Stores impairments ($50 million).

Working Capital Days 
Trade Working Capital improved by 1.8 days, 1.5 days ahead of budget. At a Group level, Inventory 
improved by 0.7 days, Accounts Payable by 0.9 days and Accounts Receivable by 0.2 days. Overall 
performance was above Stretch for F21.

ENTRY: 0.9 DAYS

TARGET: 0.5 DAYS

STRETCH: 0.1 DAYS

ACTUAL F21: (0.9) DAYS

Customer Satisfaction
Group VOC NPS was 56.1 for F21. VOC NPS results were positive through a highly volatile and challenging 
year in F21. The result was driven by positive movements in Australian Food, NZ Food, Dan Murphy’s, 
BWS and BIG W. Overall performance was between Entry and Target for F21.

%
0

%
0

l

i

s
m
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C
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m
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s
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C

l

j

s
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l

a
t
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T

t
s
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L
s
r
u
o
H

ENTRY: 55.0

TARGET: 57.0

STRETCH: 59.0

ACTUAL F21: 56.1

Safety
The F21 performance was dominated by COVID-19 and some atypical patterns due to the impact of the 
pandemic across our network. Positively, we achieved a strong improvement in reducing customer injuries 
in F21, with our customer claims measure exceeding stretch. 1,891 or 63% of our total sites did not record 
either a Total Recordable Injury, or a Customer injury/claim in F21. However, the Total Recordable Injury 
and Hours Lost metrics did not meet their F21 entry targets. The material increase in manual activity during 
the pandemic period was reflected in an increase in musculoskeletal injuries and associated recovery time.

Improvement in Customer claims

ENTRY: -2%

TARGET: -4%

STRETCH: -6%

ACTUAL F21: -7.38%

Improvement in Total Recordable (Team Member) Injuries

ENTRY: -1%

TARGET: -3%

STRETCH: -5%

ACTUAL F21: 5.18%

Improvement in Hours Lost

ENTRY: -1%

TARGET: -3%

STRETCH: -5%

ACTUAL F21: 5.34%

 
 
 
 
 
58

Remuneration Report

2.1 

SHORT TERM INCENTIVE (CONTINUED)

2.2 

LONG-TERM INCENTIVE

EXECUTIVE KMP 

REMUNERATION 2

59

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Performance against: F21 STI measures 

The scorecard performance outcome for F21 was 115.5% of target. 

F21 performance 

against the STI 

scorecard was 

above target.

115.5% of Target 

77.0% of Max

F21 ACTUAL PERFORMANCE

Stretch

%

0

5

1

%

0

5

1

%

0

5

1

%

0

5

1

Target

Entry

s

e

l

a

S

T

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E

g

n

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k

r

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s

y

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D

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m

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a

f

s

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t

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%

0

%

0

t

s

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L

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r

u

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s

m

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b

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d

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c

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R

l

a

t

o

T

Sales 1

Sales from continuing and discontinued operations was $67,278 million, representing growth of 5.7%, and 

two-year average growth of 7.1% 2. Sales growth in excess of Stretch was achieved in all businesses apart 

from NZ Food, with sales growth as follows: Australian Food 5.6%; Endeavour Drinks 9.9%; NZ Food -0.6% 

(NZD); BIG W 11.6% and Hotels 7.3%. Growth was impacted both by elevated in-home consumption in 

response to COVID-19 restrictions for our Food and Drinks businesses, despite cycling the significant 

growth of H2 F20, and strong trading performance. Overall performance was above Stretch for F21.

ENTRY: $63.9BN

TARGET: $64.8BN

STRETCH: $65.6BN

ACTUAL F21: $67.2BN 1

1 

Sales is the revenue from the sale of goods and services, excluding other operating revenue.

2  Two-year average sales growth excludes Petrol, which was sold in 2019.

Earnings Before Interest and Tax 3

EBIT from continuing and discontinued operations before significant items was $3,663 million, 

representing growth of 13.7%. Outperformance was delivered across all business units apart from New 

Zealand Food, with flow-through from strong top-line achieved despite significant COVID-19 costs incurred 

through the year. Overall performance was above Stretch for F21.

ENTRY: $3.25BN

TARGET: $3.32BN

STRETCH: $3.38BN

ACTUAL F21: $3.66BN

3  Significant items not included in this measure were a net gain of $59 million, including a net gain on 

acquisition of a majority share of Quantium ($221 million), costs on Endeavour Group demerger and 

PFD acquisition ($68 million), strategic decisions related to Supply Chain restructure ($44 million) and 

Metro Food Stores impairments ($50 million).

%

5

.

7

7

Working Capital Days 

Trade Working Capital improved by 1.8 days, 1.5 days ahead of budget. At a Group level, Inventory 

improved by 0.7 days, Accounts Payable by 0.9 days and Accounts Receivable by 0.2 days. Overall 

performance was above Stretch for F21.

ENTRY: 0.9 DAYS

TARGET: 0.5 DAYS

STRETCH: 0.1 DAYS

ACTUAL F21: (0.9) DAYS

Customer Satisfaction

Group VOC NPS was 56.1 for F21. VOC NPS results were positive through a highly volatile and challenging 

year in F21. The result was driven by positive movements in Australian Food, NZ Food, Dan Murphy’s, 

BWS and BIG W. Overall performance was between Entry and Target for F21.

ENTRY: 55.0

TARGET: 57.0

STRETCH: 59.0

ACTUAL F21: 56.1

Safety

The F21 performance was dominated by COVID-19 and some atypical patterns due to the impact of the 

pandemic across our network. Positively, we achieved a strong improvement in reducing customer injuries 

in F21, with our customer claims measure exceeding stretch. 1,891 or 63% of our total sites did not record 

either a Total Recordable Injury, or a Customer injury/claim in F21. However, the Total Recordable Injury 

and Hours Lost metrics did not meet their F21 entry targets. The material increase in manual activity during 

the pandemic period was reflected in an increase in musculoskeletal injuries and associated recovery time.

Improvement in Customer claims

ENTRY: -2%

TARGET: -4%

STRETCH: -6%

ACTUAL F21: -7.38%

Improvement in Total Recordable (Team Member) Injuries

ENTRY: -1%

TARGET: -3%

STRETCH: -5%

ACTUAL F21: 5.18%

Improvement in Hours Lost

ENTRY: -1%

TARGET: -3%

STRETCH: -5%

ACTUAL F21: 5.34%

Our approach and rationale: Long-Term Incentive

The Group’s Long-Term Incentive (LTI) Plan is called the Woolworths Incentive Share Plan (WISP). The following information 
applies to awards made under the F19, F20 and F21 plans. Intended changes for the F22 plan are set out in section 2.5.

Assessing business performance:
The LTI rewards executives subject to performance against three equally weighted 
measures over a three-year performance period:

¢   Relative TSR 
¢   Sales per square metre 
¢   Return on Funds Employed 

Relative TSR (rTSR) 
Relative TSR is used as a measure in our LTI plan to align executive outcomes and 
long-term shareholder value creation. The peer group is the ASX30, excluding metals 
and mining companies. 50% vesting is achieved ranking at the median. 100% vesting 
is achieved when our peer group ranking is at the 75th percentile or higher. Between 
the median and the 75th percentile, pro-rata vesting is achieved from 50% to 100%. 
Peer group ranking below the median results in zero vesting. 

Sales per square metre (Sales/sqm) 
Sales/sqm measures sales productivity improvements across the Food and Drinks 
businesses. Efficient use of our physical network for in-store and online sales 
is important to our success.

Return on Funds Employed (ROFE)
ROFE is an important measure to drive behaviours consistent with the delivery 
of long-term shareholder value. ROFE improvements can be delivered through 
earnings growth as well as the disciplined allocation of capital, management of assets, 
and working capital which is important for a business that is building capabilities for 
the future. ROFE is defined as EBIT (from continuing and discontinued operations) 
before significant items for the previous 12 months as a percentage of average 
(opening, mid and closing) funds employed, including significant item provisions. 

The Sales/sqm and ROFE targets are published following the end of the performance 
period given the commercial sensitivity of this information.

The vesting schedule for these measures, which are each one third of the total 
award, is:

Entry
Target
Stretch

rTSR 1

SALES/sqm

ROFE

16.66%
n/a
33.34%

6.66%
20.00%
33.33%

6.66%
20.00%
33.33%

TOTAL 
% MAX

29.98%

100%

1  Consistent with market practice, 50% of the rTSR tranche vests at the 50th percentile which is the entry 

point for vesting to occur.

Assessing individual 
performance:
The Board has discretion to 
adjust the vesting outcome 
for individuals, which may 
be reduced (including 
to zero) for behaviour 
inconsistent with our 
Ways-of-Working or 
Core Values (see malus 
policy on page 68). These 
would be the most serious 
of cases that would not 
have been adequately 
dealt with through normal 
performance management 
or consequence frameworks.

Delivering LTI Outcomes:
Executive KMP are 
awarded a maximum 
value of 170% of TFR as 
at the beginning of the 
performance period. Awards 
of performance rights are 
made at face value based 
on the five-day Volume 
Weighted Average Price 
(VWAP) up to and including 
1 July at the beginning of 
the performance period. 
Dividends that would have 
been earned and reinvested 
over the performance 
period vest in the form of 
additional shares subject to 
the performance conditions. 
The deferred nature of LTI 
arrangements also provides 
a risk management lever 
to facilitate malus policy 
application during the 
performance period.

1

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60

Remuneration Report

2.2 

LONG TERM INCENTIVE (CONTINUED)

Performance against: F19–21 LTI Measures 

The Woolworths Incentive Share Plan (WISP) replaced the Transformation Incentive Plan (TIP) that had operated for the first 
two years of the Group’s transformation. The F19–21 WISP was granted effective July 2018 with a lower level of award than TIP, 
reflecting a more stabilised operating environment. We set challenging performance targets so that maximum outcomes would 
only be delivered if very demanding stretch objectives were achieved.

E
C
N
A
M
STRETCH: 75TH 
R
PERCENTILE
O
F
R
E
P
L
A
U
T
C
A
9
1
F
O
T
7
1
F

Target

The F19–21 Award achieved 
above target performance.

131.7% of Target 
77.5% of Max

F19 TO F21 
ACTUAL PERFORMANCE

Stretch

Stretch

Relative Total Shareholder Return
Woolworths Group’s TSR over the three-year performance period was 61.03%, ranking 4th in our 
peer group, which was an 89.7th percentile performance. The demerger of Endeavour Group occurred 
at the end of the three-year performance period for the F19–21 plan, and in these circumstances an 
adjustment factor is applied to recognise the impact of the demerger from a share price perspective. 
Performance of this metric was above Stretch.

ENTRY: 50TH 
PERCENTILE

ACTUAL RESULT: 
 89.7TH PERCENTILE

Return on Funds Employed 1
Group ROFE for the purposes of the LTI metric for F21 was 15.4%, an increase of 150bps over the three-
year plan period. The improvement was driven by EBIT growth of 18.2% over the three-year plan period 
compared to an increase in funds employed of 7.0% over the same period. Reported ROFE was 16.9%; 
however, ROFE as an LTI measure was adjusted to exclude the demerger distribution liability, the impact 
of the acquisition of Quantium, and Endeavour Group corporate costs. Performance of this metric was 
between Entry and Target.

ENTRY: 15.1%

TARGET: 15.9%

Entry

STRETCH: 17.1%

ACTUAL RESULT:
15.4%

1  Group ROFE from continuing and discontinued operations is calculated as EBIT from continuing and 

discontinued operations before significant items for the previous 12 months as a percentage of average 
(opening, mid and closing) funds employed, including significant item provisions.

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Sales per square metre 2
Total sales/sqm was $18,294 for F21. Over each year of the plan period, an improvement in sales/sqm 
has been achieved, driven in particular by strong sales growth in Australian Food and Endeavour Drinks. 
Over the plan period, 5.8% CAGR sales growth and 2.1% CAGR space growth delivered a 3.6% CAGR 
a
in sales/sqm 3. Performance of this metric was between Target and Stretch.
t
o
T
e
v
i
t
a
e
R

ACTUAL RESULT:
$18,294

STRETCH: $18,351

TARGET: $17,413

ENTRY: $16,855

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2  Sales per square metre is calculated as total Group Sales (continuing and discontinued operations)/sqm 

for both continuing and discontinued operations.

3  Due to rounding and cumulative growth the sales/sqm CAGR at 3.6% is not a direct function of sales 

CAGR (5.8%) less space CAGR (2.1%).

Target

Entry

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60

Remuneration Report

2.2 

LONG TERM INCENTIVE (CONTINUED)

Performance against: F19–21 LTI Measures 

The Woolworths Incentive Share Plan (WISP) replaced the Transformation Incentive Plan (TIP) that had operated for the first 

two years of the Group’s transformation. The F19–21 WISP was granted effective July 2018 with a lower level of award than TIP, 

reflecting a more stabilised operating environment. We set challenging performance targets so that maximum outcomes would 

only be delivered if very demanding stretch objectives were achieved.

The F19–21 Award achieved 

above target performance.

131.7% of Target 

77.5% of Max

F19 TO F21 

ACTUAL PERFORMANCE

Stretch

Relative Total Shareholder Return

Stretch

Woolworths Group’s TSR over the three-year performance period was 61.03%, ranking 4th in our 

peer group, which was an 89.7th percentile performance. The demerger of Endeavour Group occurred 

at the end of the three-year performance period for the F19–21 plan, and in these circumstances an 

adjustment factor is applied to recognise the impact of the demerger from a share price perspective. 

Performance of this metric was above Stretch.

C

ENTRY: 50TH 

PERCENTILE

STRETCH: 75TH 

O

PERCENTILE

ACTUAL RESULT: 

 89.7TH PERCENTILE

Return on Funds Employed 1

9

Target

Group ROFE for the purposes of the LTI metric for F21 was 15.4%, an increase of 150bps over the three-

year plan period. The improvement was driven by EBIT growth of 18.2% over the three-year plan period 

compared to an increase in funds employed of 7.0% over the same period. Reported ROFE was 16.9%; 

F

however, ROFE as an LTI measure was adjusted to exclude the demerger distribution liability, the impact 

of the acquisition of Quantium, and Endeavour Group corporate costs. Performance of this metric was 

between Entry and Target.

ENTRY: 15.1%

TARGET: 15.9%

Entry

STRETCH: 17.1%

ACTUAL RESULT:

15.4%

1  Group ROFE from continuing and discontinued operations is calculated as EBIT from continuing and 

discontinued operations before significant items for the previous 12 months as a percentage of average 

(opening, mid and closing) funds employed, including significant item provisions.

Sales per square metre 2

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Total sales/sqm was $18,294 for F21. Over each year of the plan period, an improvement in sales/sqm 

h

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has been achieved, driven in particular by strong sales growth in Australian Food and Endeavour Drinks. 

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Over the plan period, 5.8% CAGR sales growth and 2.1% CAGR space growth delivered a 3.6% CAGR 

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in sales/sqm 3. Performance of this metric was between Target and Stretch.

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ENTRY: $16,855

TARGET: $17,413

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STRETCH: $18,351

a

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ACTUAL RESULT:

$18,294

2  Sales per square metre is calculated as total Group Sales (continuing and discontinued operations)/sqm 

for both continuing and discontinued operations.

3  Due to rounding and cumulative growth the sales/sqm CAGR at 3.6% is not a direct function of sales 

CAGR (5.8%) less space CAGR (2.1%).

Target

Entry

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7

1

EXECUTIVE KMP 

REMUNERATION 2

61

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2.3 

 WHAT WE PAID EXECUTIVE KMP IN F21 AND PROGRESS ON MINIMUM 
SHAREHOLDING REQUIREMENTS

The following pages compare actual, target, and maximum remuneration received during F21 for the Executive KMP. Amounts include: 
•  Total fixed remuneration received (including base salary, superannuation, and car allowance).
•  Relocation and other benefits received, including the deemed premium in respect of Director’s and Officer’s indemnity 

insurance ($4,421).

•  Cash STI received for business and individual performance in F21. 
•  Equity that vested during the year at face value for each plan. 
•  Equity granted in F21 and all unvested equity awards (Share Rights for DSTI and Performance Rights for LTI).

At the end of F21, the demerger of Endeavour Group (ASX:EDV) had an impact on the operation of Woolworths Group’s share 
plans. Unvested share rights or performance rights did not receive Endeavour Group shares upon demerger. This reduced the 
value of these rights after Woolworths share price traded lower to reflect the demerger of Endeavour. 

Consistent with the Group share plan rules, and to maintain the integrity of our Group share plans so that team members were, 
on balance, no better or worse off as a result of the demerger, the underlying unvested awards were adjusted by increasing the 
number of share rights or performance rights by a factor of 1.1653, determined using a standard formula 1. This variation was 
applied to the following plans that were on foot at the time of the demerger, and is reflected in the individual balances in the 
Executive KMP tables below:
•  Awards that vested in F21: F19 DSTI and F19–21 WISP.
•  Awards that may vest in the future: F20 DSTI, F20–22 WISP, and F21–23 WISP.

The above variation also applies to awards retained by departed Endeavour Group team members. For these team members, 
it was determined that the portion of any unvested WISP rights that related to tenure after the demerger would not be cash 
settled and were forfeited.

Awards from the F19 DSTI and F19–21 WISP vested on 1 July 2021 for our Executive KMP. The disclosed value of the vested 
awards uses the Woolworths Group five-day VWAP up to and including 1 July 2021. The change in share price and the 
accumulated dividends that would have been earned and reinvested over the period in the form of additional shares at vesting 
are contributing factors in the final value received by the Executive KMP from the respective plans.

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

The individual tables below also show progress against the Minimum Shareholding Requirements (MSR) as at 1 July 2021 
($37.6069). Further detail on the MSR requirements are included in Section 3.4.

'

Brad (4=80)

Brad Banducci CHIEF EXECUTIVE OFFICER 

Term as KMP: Full Year

Actual remuneration received for F21 v Target and Maximum ($000)

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

Actual Remuneration

2,600

Target Remuneration

2,600

4

4

4

1,300

1,300

2,600

7,804

Maximum Remuneration

2,600

1,950

1,950

4,420

10,924

Brad
Progress on Minimum 
Shareholding 
Requirement (MSR) 
as at 1 July 2021 ($000)

ACTUAL

$19,075

TARGET

$5,200

Equity granted  
($000)

Natalie

Unvested LTI and STI 
Awards ($000)

F20 DSTI

ACTUAL

F20–22 WISP

$6,369

F21 DSTI

1,652

F21 DSTI

F21–23 WISP

TARGET

5,283

$965

F21–23 WISP

Total

6,935

Total

0

5,831

1,652

5,283

12,766

5

O
T
H
E
R

I

N
F
O
R
M
A
T
O
N

I

Stephen Donohue

Vested LTI and STI 
Awards ($000)  
including share price uplift

1,652

1,197

4,200

1,169

10,822

Actual Remuneration

962

611

362

1,616

437

3,992

Actual Remuneration

900

520

1,011

243

2,678

Stephen Donohue  (4=31)

Stephen Harrison  (2=20)

4

4

4

Stephen Harrison

Claire

Target Remuneration

962

481

481

962

2,890

Target Remuneration

900

450

450

900

2,704

Maximum Remuneration

962

722

722

1,635

4,045

Maximum Remuneration

900

675

675

1,530

3,784

4

4

4

ACTUAL

$3,809

F19 DSTI

TARGET

$962

F19–21 WISP

Total

ACTUAL

$3,805

ACTUAL

$4,151

TARGET

$900

TARGET

$1,300

1,356

5,210

6,566

LEGEND ¢  TFR ¢  Relocation and 
other benefits

¢  Cash STI ¢  DSTI 

(grant share price)

¢  LTI 

(grant share price)

¢  Vested DSTI and LTI 
(vested share price)

1  Number of rights held immediately prior to demerger x ((WOW five-day VWAP post demerger + EDV five-day VWAP post demerger)/WOW five-day 

VWAP post demerger) – Number of rights held immediately prior to demerger. In this case, the WOW VWAP was $37.5475 and the EDV VWAP was $6.2068.

Natalie Davis  (45=90)

Claire Peters

Actual Remuneration

714

408

366

1,791

45

151

107

2

2

2

45

45

Target Remuneration

965

483

483

965

2,940

Target Remuneration

650

650

1,300

4,040

Maximum Remuneration

965

724

724

1,641

4,099

Maximum Remuneration

1,300

975

975

2,210

5,600

Actual Remuneration

325

340

1,638

439

3,070

140

188

1,300

2

2

2

140

140

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brad (4=80)

Stephen Donohue  (4=31)

Actual Remuneration

2,600

1,652

1,197

4,200

1,169

10,822

Actual Remuneration

962

611

362

1,616

437

3,992

Actual Remuneration

900

520

1,011

243

2,678

Target Remuneration

2,600

1,300

1,300

2,600

Target Remuneration

962

481

481

962

2,890

Target Remuneration

900

450

450

900

2,704

Maximum Remuneration

2,600

1,950

1,950

10,924

Maximum Remuneration

962

722

722

1,635

4,045

Maximum Remuneration

900

675

675

1,530

3,784

4

4

4

7,804

4,420

4

4

4

Stephen Harrison  (2=20)

4

4

4

62

Remuneration Report

2.3 

 WHAT WE PAID EXECUTIVE KMP IN F21 AND PROGRESS ON MINIMUM 
SHAREHOLDING REQUIREMENTS (CONTINUED)

Natalie Davis MANAGING DIRECTOR, WOOLWORTHS SUPERMARKETS 

Natalie Davis  (45=90)

Term as KMP: from 1 October 2020 1

Claire Peters

Actual remuneration received for F21 v Target and Maximum ($000)

Brad

Actual Remuneration

Target Remuneration

Maximum Remuneration

2

2

2

Natalie
Progress on Minimum 
Shareholding 
Requirement (MSR) 
as at 1 July 2021 ($000)

ACTUAL

$19,075

ACTUAL

$6,369

TARGET

$5,200

TARGET

$965

45

151

107

714

408

366

1,791

965

45

45

483

483

965

2,940

965

724

724

1,641

4,099

Equity granted  
($000)

Stephen Donohue
Unvested LTI and STI 
Awards ($000)

F20 DSTI

ACTUAL

F20–22 WISP

$3,809

F21 DSTI

544

F21 DSTI

F21–23 WISP

TARGET

1,772

$962

F21–23 WISP

Total

2,316

Total

365

1,955

544

1,772

4,636

Actual Remuneration

325

340

1,638

439

3,070

Target Remuneration

650

650

1,300

4,040

140

188

1,300

2

2

2

140

140

Maximum Remuneration

1,300

975

975

2,210

5,600

Stephen Harrison

Vested LTI and STI 
Awards ($000)  
including share price uplift

Claire

ACTUAL

$3,805

F19 DSTI

TARGET

$900

F19–21 WISP

Total

ACTUAL

$4,151

TARGET

$1,300

455

1,817

2,272

Brad (4=80)

Stephen Donohue  (4=31)

Stephen Donohue MANAGING DIRECTOR, ENDEAVOUR DRINKS 

Term as KMP: Full Year

Stephen Harrison  (2=20)

Maximum Remuneration

2,600

1,950

1,950

10,924

Maximum Remuneration

962

722

722

1,635

4,045

Maximum Remuneration

900

675

675

1,530

3,784

Actual remuneration received for F21 v Target and Maximum ($000)

Actual Remuneration

962

Target Remuneration

962

4

4

4

611

362

1,616

437

3,992

481

481

962

2,890

Actual Remuneration

900

520

1,011

243

2,678

Target Remuneration

900

450

450

900

2,704

4

4

4

1  Ms Davis was an Executive KMP for nine months of F21 after commencing in the Managing Director, Woolworths Supermarkets role on 1 October 2020.
2  Actual Remuneration is prorated to report the proportion of each component of remuneration that can be attributed to the period as Executive KMP. For TFR and 

Cash STI that is nine out of 12 months, for DSTI that is nine out of 24 months, and for LTI that is nine out of 36 months. Target and Maximum Remuneration represent 
full year remuneration package settings.

Actual Remuneration

2,600

1,652

1,197

4,200

1,169

10,822

Target Remuneration

2,600

1,300

1,300

2,600

7,804

4,420

4

4

4

Brad

Natalie

ACTUAL

$19,075

ACTUAL

$6,369

ACTUAL

$3,809

TARGET

$5,200

TARGET

$965

TARGET

$962

Stephen DonohueEquity granted  

($000)

Stephen Harrison
Unvested LTI and STI 
Awards ($000)

Progress on Minimum 
Shareholding 
Requirement (MSR) 
as at 1 July 2021 ($000)

F20 DSTI

ACTUAL

F20–22 WISP

$3,805

F21 DSTI

611

F21 DSTI

F21–23 WISP 1

TARGET

1,769

$900

F21–23 WISP 1

Total

2,380

Total

402

1,433

611

646

3,092

Claire
Vested LTI and STI 
Awards ($000) 
including share price uplift

ACTUAL

$4,151

F19 DSTI

TARGET

$1,300
F19–21 WISP

Total

410

2,005

2,415

1  66.94% of Mr Donohue’s F21–23 WISP award would not be cash settled and was forfeited upon his departure from the Woolworths Group as a result of the 

Endeavour Group demerger. The initial award was $1.769 million, and the value remaining unvested after the adjustment was $0.646 million.

LEGEND ¢  TFR ¢  Relocation and 
other benefits

¢  Cash STI ¢  DSTI 

(grant share price)

¢  LTI 

(grant share price)

¢  Vested DSTI and LTI 
(vested share price)

Natalie Davis  (45=90)

Claire Peters

Actual Remuneration

714

408

366

1,791

45

151

107

2

2

2

45

45

Target Remuneration

965

483

483

965

2,940

Target Remuneration

650

650

1,300

4,040

Maximum Remuneration

965

724

724

1,641

4,099

Maximum Remuneration

1,300

975

975

2,210

5,600

Actual Remuneration

325

340

1,638

439

3,070

140

188

1,300

2

2

2

140

140

Brad (4=80)

Stephen Donohue  (4=31)

Stephen Harrison  (2=20)

Actual Remuneration

2,600

1,652

1,197

4,200

1,169

10,822

Actual Remuneration

962

611

362

1,616

437

3,992

Actual Remuneration

900

520

1,011

243

2,678

Target Remuneration

2,600

1,300

1,300

2,600

Target Remuneration

962

481

481

962

2,890

Target Remuneration

900

450

450

900

2,704

Maximum Remuneration

2,600

1,950

1,950

10,924

Maximum Remuneration

962

722

722

1,635

4,045

Maximum Remuneration

900

675

675

1,530

3,784

4

4

4

7,804

4,420

4

4

4

62

Remuneration Report

Brad (4=80)

Stephen Donohue  (4=31)

2.3 

 WHAT WE PAID EXECUTIVE KMP IN F21 AND PROGRESS ON MINIMUM 

SHAREHOLDING REQUIREMENTS (CONTINUED)

2.3 

 WHAT WE PAID EXECUTIVE KMP IN F21 AND PROGRESS ON MINIMUM 
SHAREHOLDING REQUIREMENTS (CONTINUED)

EXECUTIVE KMP 

REMUNERATION 2

63

A
N
N
U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

Stephen Harrison  (2=20)

Stephen Harrison  (2=20)
962
Stephen Harrison CHIEF FINANCIAL OFFICER 

Actual Remuneration
Claire Peters
Target Remuneration

962

481

611

4

481

4

962

2,890

Term as KMP: Full Year

362

1,616

437

3,992

Actual Remuneration

900

520

1,011

243

2,678

4

4

4

4

4

4

Target Remuneration

900

450

450

900

2,704

Maximum Remuneration

900

675

675

1,530

3,784

Actual Remuneration

2,600

1,652

1,197

4,200

1,169

10,822

4

4

4

7,804

4,420

Target Remuneration

2,600

1,300

1,300

2,600

Target Remuneration

Target Remuneration

962

965

481

483

481

483

962

965

2,890

2,940

Maximum Remuneration

2,600

1,950

1,950

10,924

Maximum Remuneration

Maximum Remuneration

962

965

722

724

722

724

1,635

1,641

4,045

4,099

Actual Remuneration

Actual Remuneration

Target Remuneration

Target Remuneration

Maximum Remuneration

Maximum Remuneration

140

4

325
900

340

520

188
4
1,300

450

900

4
1,300

675

900

2

2

2

1,011

1,638

243

2,678
439

3,070

650

900

650

2,704

1,300

4,040

140
450

140

675

975

975
1,530

3,784

2,210

5,600

Actual remuneration received for F21 v Target and Maximum ($000)
4
Maximum Remuneration

1,635

962

722

722

4,045

Brad

Brad

Equity granted  

Stephen Donohue

Natalie

Unvested LTI and STI 

Natalie

Progress on Minimum 

Shareholding 

Requirement (MSR) 

as at 1 July 2021 ($000)

Stephen Harrison

Vested LTI and STI 

Awards ($000)  

including share price uplift

Stephen Donohue
Claire

Stephen Harrison

Progress on Minimum  
Shareholding 
Requirement (MSR) 
as at 1 July 2021 ($000)

ACTUAL

$19,075

ACTUAL

$6,369

ACTUAL

$19,075

ACTUAL

$6,369

ACTUAL

$3,805

ACTUAL

$3,809

ACTUAL

$4,151

ACTUAL

$3,805

TARGET

$5,200

TARGET

$965

TARGET

$962

TARGET

$1,300

TARGET

$900

Equity granted  
($000)

Claire

Unvested LTI and STI  
Awards ($000)

F20 DSTI

ACTUAL

F20–22 WISP

$4,151

F21 DSTI

520

F21 DSTI

F21–23 WISP

1,829

TARGET

$1,300

F21–23 WISP

Total

2,349

Total

345

2,018

520

1,829

4,712

Vested LTI and STI  
Awards ($000)  
including share price uplift

F19 DSTI

F19–21 WISP

Total

0

1,254

1,254

Brad (4=80)

Actual Remuneration

2,600

1,652

1,197

Stephen Donohue  (4=31)

Natalie Davis MANAGING DIRECTOR, WOOLWORTHS SUPERMARKETS 

Natalie Davis  (45=90)

4

Target Remuneration

2,600

1,300

1,300

2,600

4,200

1,169

10,822

Term as KMP: from 1 October 2020 1

Actual remuneration received for F21 v Target and Maximum ($000)

4

Maximum Remuneration

2,600

1,950

1,950

10,924

Actual Remuneration

Actual Remuneration

962

714

408

611

366

362

1,791

1,616

437

3,992

45

4

151

107

7,804

4,420

4

4

45

4

45

($000)

2

2

2

Awards ($000)

F20 DSTI

$3,809

F20–22 WISP

ACTUAL

F21 DSTI

365

1,955

544

$965

1,772

4,636

TARGET

$5,200

TARGET

$962

F21–23 WISP

TARGET

F21–23 WISP

F21 DSTI

Total

544

1,772

2,316

Total

F19 DSTI

TARGET

$900

F19–21 WISP

Total

455

1,817

2,272

1  Ms Davis was an Executive KMP for nine months of F21 after commencing in the Managing Director, Woolworths Supermarkets role on 1 October 2020.

2  Actual Remuneration is prorated to report the proportion of each component of remuneration that can be attributed to the period as Executive KMP. For TFR and 

Cash STI that is nine out of 12 months, for DSTI that is nine out of 24 months, and for LTI that is nine out of 36 months. Target and Maximum Remuneration represent 

full year remuneration package settings.

Natalie Davis  (45=90)

Stephen Donohue  (4=31)

Stephen Donohue MANAGING DIRECTOR, ENDEAVOUR DRINKS 

107

151

45

Actual Remuneration

714

408

366

1,791

Claire Peters

Actual remuneration received for F21 v Target and Maximum ($000)

45

Target Remuneration

965

483

483

965

Actual Remuneration

Maximum Remuneration

962

45

611

724

362

724

2,940

1,616

1,641

437

3,992

4,099

2

2

2

2

2

2

4

4

965

140

188

Natalie

140

4

140

Actual Remuneration

2,600

1,652

1,197

4,200

1,169

10,822

Brad (4=80)

Natalie Davis  (45=90)

4

45

151

4

107

45

4

45

2

2

2

Maximum Remuneration

965

724

724

1,641

4,099

Brad

Natalie

Maximum Remuneration

Progress on Minimum 

Stephen DonohueEquity granted  

1,300

975

975

Stephen Harrison

2,210

Unvested LTI and STI 

5,600

Claire

ACTUAL

$19,075

ACTUAL

$6,369

ACTUAL

$3,809

ACTUAL

$3,805

TARGET

$5,200

TARGET

$965

TARGET

$962

ACTUAL

$19,075

Shareholding 

Requirement (MSR) 

TARGET

$5,200

as at 1 July 2021 ($000)

TARGET

$965

Vested LTI and STI 

Awards ($000) 

including share price uplift

F20 DSTI

TARGET

F20–22 WISP

F21 DSTI

F21–23 WISP 1

Total

402

$962

1,433

611

646

3,092

ACTUAL

$4,151

F19 DSTI

TARGET

$1,300

F19–21 WISP

Total

410

2,005

2,415

F21 DSTI

F21–23 WISP 1

Total

611

1,769

2,380

TARGET

$900

Natalie Davis  (45=90)

Claire Peters

Actual Remuneration

714

408

366

1,791

45

151

107

2

2

2

45

45

Target Remuneration

965

483

483

965

2,940

Target Remuneration

650

650

1,300

4,040

Maximum Remuneration

965

724

724

1,641

4,099

Maximum Remuneration

1,300

975

975

2,210

5,600

Actual Remuneration

325

340

1,638

439

3,070

140

188

1,300

2

2

2

140

140

Actual Remuneration

Target Remuneration

714

2,600

408

366

1,300

1,791

1,300

2,600

7,804

Actual Remuneration

Target Remuneration

325

962

340

481

1,638

481

962

439

2,890

3,070

Maximum Remuneration

Target Remuneration

965

2,600

483

483

1,950

965

1,950

2,940

4,420

10,924

Maximum Remuneration

Target Remuneration

1,300

962

722

650

722

650

1,300

1,635

4,040

4,045

Brad

Stephen Donohue

Stephen Harrison

Actual Remuneration
2

Maximum Remuneration

Target Remuneration
Claire
Progress on Minimum 
Maximum Remuneration
Shareholding 
Requirement (MSR) 
as at 1 July 2021 ($000)

Claire Peters

Claire Peters MANAGING DIRECTOR, WOOLWORTHS SUPERMARKETS 

Term as KMP: until 30 September 2020 1

'

Actual remuneration received for F21 v Target and Maximum ($000)
Stephen Harrison  (2=20)

Term as KMP: Full Year

Actual Remuneration

Target Remuneration

2

2

140

325

340

1,638

439

3,070

188

1,300

900
1,300

4

4

140

650

650

1,300

4,040

140
520

1,011

243

2,678

975

975

2,210

5,600

900

450

450

900

2,704

4

900

Equity granted  
675
($000)

675

1,530

Unvested LTI and STI 
3,784
Awards ($000)

F20 DSTI

F20–22 WISP

F21 DSTI

F21–23 WISP

Total

544

2,915

751

2,642

6,852

Vested LTI and STI  
Awards ($000)  
including share price uplift

F19 DSTI

F19–21 WISP

Total

616

2,709

3,325

ACTUAL

($000)

$6,369

Awards ($000)

ACTUAL

$3,809

ACTUAL

$3,805

ACTUAL

$4,151

TARGET

$900

TARGET

$1,300

F21 DSTI

F21–23 WISP

Total

751

2,642

3,393

1  66.94% of Mr Donohue’s F21–23 WISP award would not be cash settled and was forfeited upon his departure from the Woolworths Group as a result of the 

Endeavour Group demerger. The initial award was $1.769 million, and the value remaining unvested after the adjustment was $0.646 million.

1  Ms Peters was an Executive KMP for three months of F21 while in the role of Managing Director, Woolworths Supermarkets, which she performed until 

30 September 2020.

2  Actual Remuneration is prorated to report the proportion of each component of remuneration that can be attributed to the period as Executive KMP. For TFR and 
Cash STI that is three out of 12 months, for DSTI that is 15 out of 24 months, and for LTI that is 27 out of 36 months. Target and Maximum Remuneration represent 
full year remuneration package settings.

LEGEND ¢  TFR ¢  Relocation and 

other benefits

¢  Cash STI ¢  DSTI 

(grant share price)

(grant share price)

¢  LTI 

¢  Vested DSTI and LTI 

(vested share price)

LEGEND ¢  TFR ¢  Relocation and 
other benefits

¢  Cash STI ¢  DSTI 

(grant share price)

¢  LTI 

(grant share price)

¢  Vested DSTI and LTI 
(vested share price)

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2.4 

TERMS OF EXECUTIVE KMP SERVICE AGREEMENTS

All Executive KMP are employed on service agreements that detail the components of remuneration paid but do not prescribe 
how remuneration levels are to be modified from year to year. The agreements do not provide for a fixed term, although the 
service agreements may be terminated on specified notice. The notice period is 12 months for the CEO and six months for all 
other Executive KMP. Below is a summary of the termination provisions for Executive KMP.

Termination by Company

Termination by Executive KMP

Where the notice period is worked:

Where the notice period is worked:

•  Total fixed remuneration is paid in respect of and for 

•  Total fixed remuneration is paid in respect of and for 

the duration of the notice period.

the duration of the notice period. 

Where the notice period is paid in lieu:

Where the notice period is paid in lieu:

•  Total fixed remuneration in respect of the notice period 

•  Total fixed remuneration in respect of the notice period 

(and, if appropriate, a reasonable estimate of STI) is paid 
as a lump sum.

is paid as a lump sum. 

In both circumstances:

In both circumstances:

•  The extent to which STI, DSTI and LTI arrangements 
remain in place will be treated in accordance with the 
relevant rules for the award, including any exercise 
of discretion by the Board. Refer to Section 3.3 for 
further details.

If termination is for cause:

•  Only accrued leave and unpaid total fixed remuneration 

for days worked is paid.

•  STI, DSTI and LTI are forfeited.

•  The extent to which STI is payable will be treated 

in accordance with the relevant rules for the award, 
including any exercise of discretion by the Board.

•  Unvested DSTI and LTI are treated in accordance with 
the relevant rules for the award and at the discretion 
of the Board. Refer to Section 3.3 for further detail.

In addition, and upon further payment (where required), 
the Company may invoke a restraint period of up to 
12 months following separation, preventing Executive KMP 
from engaging in any business activity with competitors.

2.5 

REMUNERATION FRAMEWORK CHANGES FOR F22

In F21, the People Committee commissioned PwC to undertake a comprehensive independent review of the Group’s current 
remuneration framework. The purpose of the review was to confirm that the remuneration framework remains fit for purpose, 
recognising Woolworths Group’s significant growth in recent years, an evolving business, with changing company portfolio 
strategy, and operating amidst changing external stakeholder expectations of remuneration for large ASX listed companies. 

The review confirmed that the current remuneration framework is fit for purpose, demonstrating a strong link between pay and 
performance, and is relatively aligned to the broader Australian market and as such, the Board determined that no significant 
change was required. However, the progress of the Group’s transformation over F21 led the Board to introduce a number 
of changes to strengthen alignment of the performance measures with the Group’s strategic objectives. 

These changes are outlined on the following page.

2.4 

TERMS OF EXECUTIVE KMP SERVICE AGREEMENTS

2.5 

REMUNERATION FRAMEWORK CHANGES FOR F22 (CONTINUED)

EXECUTIVE KMP 

REMUNERATION 2

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All Executive KMP are employed on service agreements that detail the components of remuneration paid but do not prescribe 

how remuneration levels are to be modified from year to year. The agreements do not provide for a fixed term, although the 

service agreements may be terminated on specified notice. The notice period is 12 months for the CEO and six months for all 

other Executive KMP. Below is a summary of the termination provisions for Executive KMP.

Termination by Company

Termination by Executive KMP

Where the notice period is worked:

Where the notice period is worked:

•  Total fixed remuneration is paid in respect of and for 

•  Total fixed remuneration is paid in respect of and for 

the duration of the notice period.

the duration of the notice period. 

Where the notice period is paid in lieu:

Where the notice period is paid in lieu:

•  Total fixed remuneration in respect of the notice period 

•  Total fixed remuneration in respect of the notice period 

(and, if appropriate, a reasonable estimate of STI) is paid 

is paid as a lump sum. 

as a lump sum.

In both circumstances:

In both circumstances:

•  The extent to which STI is payable will be treated 

relevant rules for the award, including any exercise 

of discretion by the Board. Refer to Section 3.3 for 

further details.

If termination is for cause:

for days worked is paid.

•  STI, DSTI and LTI are forfeited.

•  Unvested DSTI and LTI are treated in accordance with 

the relevant rules for the award and at the discretion 

of the Board. Refer to Section 3.3 for further detail.

In addition, and upon further payment (where required), 

12 months following separation, preventing Executive KMP 

from engaging in any business activity with competitors.

•  Only accrued leave and unpaid total fixed remuneration 

the Company may invoke a restraint period of up to 

2.5 

REMUNERATION FRAMEWORK CHANGES FOR F22

In F21, the People Committee commissioned PwC to undertake a comprehensive independent review of the Group’s current 

remuneration framework. The purpose of the review was to confirm that the remuneration framework remains fit for purpose, 

recognising Woolworths Group’s significant growth in recent years, an evolving business, with changing company portfolio 

strategy, and operating amidst changing external stakeholder expectations of remuneration for large ASX listed companies. 

The review confirmed that the current remuneration framework is fit for purpose, demonstrating a strong link between pay and 

performance, and is relatively aligned to the broader Australian market and as such, the Board determined that no significant 

change was required. However, the progress of the Group’s transformation over F21 led the Board to introduce a number 

of changes to strengthen alignment of the performance measures with the Group’s strategic objectives. 

These changes are outlined on the following page.

The following table outlines the changes for F22 to the remuneration framework:

F21 COMPONENT

CHANGES EFFECTIVE 1 JULY 2021 (F22)

RATIONALE

Short-Term Incentive

Adjustment to Safety Performance Measure (20% weighting)

Safety performance is measured using 
three equally weighted measures, which 
includes improvement in: (i) customer 
claims; (ii) total recordable (team 
member) injuries; and (iii) hours lost. 

Safety performance will be measured 
by the Severity Rate, which is a blended 
measure that includes all team and 
customer injuries/illnesses (first aid 
through to lost time injuries, both physical 
and psychological) and those events with 
a high potential severity (potential to cause 
a fatality). The higher the severity of an 
incident (actual or potential), the higher 
its severity score. The total of all severity 
scores is then divided by the event count 
to determine the Severity Rate.

The safety of our team and customers 
is very important to us, so we have 
broadened our existing measure. The 
new measure will ensure that the most 
serious incidents will have the biggest 
impact on the outcomes for the safety 
measure. Including a broader range of 
safety incidents will help us monitor 
more complex and emerging risks to the 
wellbeing of our team and customers.

•  The extent to which STI, DSTI and LTI arrangements 

in accordance with the relevant rules for the award, 

remain in place will be treated in accordance with the 

including any exercise of discretion by the Board.

Long-Term Incentive

Removal of Sales/sqm performance measure and introduction of Reputation performance measure (20% weighting – see below)

Efficient use of our physical network 
for in-store and online Food sales 
in Australia and New Zealand.

Reputation, using the RepTrak measure, 
and calculated as the average of the 
previous 12 months rolling 12-month 
scores in the final year of the plan vs. 
the baseline. This measures brand 
reputation across four key metrics; trust, 
admiration, positive feeling, and esteem.

Weighting of performance measures

rTSR – 33.34%
ROFE – 33.33%
Sales/sqm – 33.33%

rTSR – 40%
ROFE – 40%
Reputation – 20%

Vesting schedule

rTSR

SALES/ 
sqm

ROFE

TOTAL 
% MAX

rTSR

ROFE REPUTATION

Entry

Target

16.66% 6.66% 6.66% 29.98%

Entry

20% 8%

n/a 20.00% 20.00%

Target

n/a

24%

Stretch 33.34% 33.33% 33.33% 100%

Stretch 40% 40%

4%

12%

20%

TOTAL 
% MAX

32%

100%

Reputation plays a key role in the extent 
to which customers choose to engage 
with Woolworths Group, and has a 
high correlation to sales. It represents 
delivery against our purpose (internally), 
commitments (externally) and evolving 
expectations of our customers. It also 
takes into account our relationship 
with our team, suppliers, and other 
key stakeholders. Including this measure 
in the LTI will keep these matters in sharp 
focus as we seek to deliver our strategy. 
While Sales/sqm remains a key internal 
metric in driving strong performance 
outcomes, it is becoming less relevant 
as a Group performance measure as 
eCommerce continues to grow and the 
Group builds its ecosystem, which includes 
businesses where the key value drivers are 
different to traditional retail businesses. 
A focus on sales and retail productively will 
continue through sales and EBIT in the STI 
and ROFE in the LTI.

Introducing a non-financial measure 
of Reputation in the LTI reinforces an 
important long-term driver of success. 
However, until it is more embedded in the 
Group, the majority of LTI measures (80%) 
remain weighted to financial performance.

The change in weighting of the LTI 
components results in an accompanying 
change in the LTI vesting schedule.

The CEO’s F22–24 WISP grant reflects these changes, and will be put to shareholders at the 2021 AGM.

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3 GOVERNANCE

3.1 

ROLE OF THE BOARD 

The Board reviews, challenges, applies judgement and, as appropriate, approves the PC’s recommendations relating to the 
remuneration of Executive KMP and of Non-executive Directors and the policies and frameworks that govern both.

When reviewing performance and determining incentive outcomes, the Board starts from the presumption that performance 
outcomes that determine incentive awards should align with market-reported outcomes, management activity and 
shareholder outcomes. To achieve this alignment, the Board retains discretion over final performance and incentive outcomes, 
and recognises that there are cases where adjustments should be made. The Board considers PC recommendations and 
consequences of risk-related matters, including whether malus should be applied in the process of finalising incentive and 
reward outcomes. In determining reward outcomes, the Board will also pay specific attention to items that are:

•  Outside of the control of management.

•  The result of portfolio/strategy changes implemented but not envisaged in the original performance targets.

•  Due to significant change in asset valuations outside the normal course of business.

•  Significant risk management and compliance matters.

3.2 

ROLE OF THE PEOPLE COMMITTEE (PC)

The PC operates under its own Charter and reports to the Board. The role of the PC is to provide advice and assistance to the 
Board in relation to people management and remuneration policies, so that remuneration outcomes for senior executives are 
appropriate and aligned to company performance and shareholder expectations. 

The PC reviews the CEO’s proposal for performance and incentive outcomes with a risk lens. This incorporates advice from the 
CRO, CLO, CPO, and Head of Internal Audit, as well as consultation with Committee Chairs and all Directors to help inform its 
recommendations to the Board on the consequence of risk-related matters on variable remuneration of the CEO and his direct 
reports, and overall Group STI and LTI outcomes.

A copy of the PC Charter is available on the company’s website: www.woolworthsgroup.com.au

The chair of the Board and the chair of the PC regularly engage with external stakeholders on remuneration arrangements.

Independent Remuneration Advisors 
Where appropriate, the Board and the PC consult external remuneration advisors. When such external remuneration advisors 
are selected, the Board considers potential conflicts of interest. Advisors’ terms of engagement regulate their access to, 
and (where required) set out their independence from, members of Woolworths Group management.

The requirement for external remuneration advisor services is assessed annually in the context of matters the PC needs 
to address. External advice is used as a guide, and does not serve as a substitute for Directors’ thorough consideration of the 
relevant matters.

The Board and PC engaged PwC as its independent Remuneration Advisor. While Woolworths seeks regular input from PwC, 
no remuneration recommendations, as defined by the Corporations Act 2001 (Cth), were made by our remuneration advisors.

GOVERNANCE 3

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3.3 

TREATMENT OF UNVESTED EQUITY AWARDS UPON EXIT

For the DSTI and LTI plans, the Board has overriding discretion over the treatment of awards when an executive ceases 
employment. At the 2020 AGM, shareholders again approved providing the Board with discretion to determine how unvested 
share rights awards will be treated when an executive ceases employment.

The approach the Board would expect to take when exercising this discretion is:

REASON FOR LEAVING

DEFERRED STI

UNVESTED LTI

Genuine retirement

Death, illness and incapacity

Remain on foot until the end 
of the deferral period and vest 
at that time

Termination for cause/gross misconduct/
poor performance

Resignation

Award forfeited

Award forfeited

Award pro-rated for portion 
of the performance period 
participant has worked and 
remains ‘on foot’ until the end 
of the performance period

Award forfeited

Award forfeited

Mutual separation, redundancy, or other 
reasons as determined by Board

The Board will determine the appropriate treatment in the circumstances 
on a case by case basis

In cases of resignation, the Board will consider the circumstances surrounding each case to allow for the appropriate 
treatment. For instance, where the executive is not resigning to join a direct competitor and all reasonable steps have been 
taken to continue to support the success of the business through to their final date of employment, the Board may consider 
it appropriate to allow some incentive awards to remain on foot. 

In any case, where an award remains on foot post employment, the Board retains absolute discretion under the various plan 
rules as to the final vesting outcome. The Board will continue to monitor the executive post employment and if they do not 
meet their post-employment obligations, the Board may lapse any remaining awards. For example, in cases where:

•  The executive resigns to join a competitor organisation, or in the Board’s opinion the executive does not support the 

business to their final day of employment, any unvested DSTI and LTI will generally lapse.

•  The executive retires from Woolworths, but then at a later date (and prior to vesting of awards) undertakes actions 

inconsistent with retirement, it may result in the Board reconsidering the treatment of any unvested awards.

The chair of the Board and the chair of the PC regularly engage with external stakeholders on remuneration arrangements.

The Board will disclose any exercise of discretion in relation to Executive KMP in the Remuneration Report.

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3 GOVERNANCE

3.1 

ROLE OF THE BOARD 

The Board reviews, challenges, applies judgement and, as appropriate, approves the PC’s recommendations relating to the 

remuneration of Executive KMP and of Non-executive Directors and the policies and frameworks that govern both.

When reviewing performance and determining incentive outcomes, the Board starts from the presumption that performance 

outcomes that determine incentive awards should align with market-reported outcomes, management activity and 

shareholder outcomes. To achieve this alignment, the Board retains discretion over final performance and incentive outcomes, 

and recognises that there are cases where adjustments should be made. The Board considers PC recommendations and 

consequences of risk-related matters, including whether malus should be applied in the process of finalising incentive and 

reward outcomes. In determining reward outcomes, the Board will also pay specific attention to items that are:

•  Outside of the control of management.

•  The result of portfolio/strategy changes implemented but not envisaged in the original performance targets.

•  Due to significant change in asset valuations outside the normal course of business.

•  Significant risk management and compliance matters.

3.2 

ROLE OF THE PEOPLE COMMITTEE (PC)

The PC operates under its own Charter and reports to the Board. The role of the PC is to provide advice and assistance to the 

Board in relation to people management and remuneration policies, so that remuneration outcomes for senior executives are 

appropriate and aligned to company performance and shareholder expectations. 

The PC reviews the CEO’s proposal for performance and incentive outcomes with a risk lens. This incorporates advice from the 

CRO, CLO, CPO, and Head of Internal Audit, as well as consultation with Committee Chairs and all Directors to help inform its 

recommendations to the Board on the consequence of risk-related matters on variable remuneration of the CEO and his direct 

reports, and overall Group STI and LTI outcomes.

A copy of the PC Charter is available on the company’s website: www.woolworthsgroup.com.au

Independent Remuneration Advisors 

Where appropriate, the Board and the PC consult external remuneration advisors. When such external remuneration advisors 

are selected, the Board considers potential conflicts of interest. Advisors’ terms of engagement regulate their access to, 

and (where required) set out their independence from, members of Woolworths Group management.

The requirement for external remuneration advisor services is assessed annually in the context of matters the PC needs 

to address. External advice is used as a guide, and does not serve as a substitute for Directors’ thorough consideration of the 

relevant matters.

The Board and PC engaged PwC as its independent Remuneration Advisor. While Woolworths seeks regular input from PwC, 

no remuneration recommendations, as defined by the Corporations Act 2001 (Cth), were made by our remuneration advisors.

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3.4 

OTHER GOVERNANCE REQUIREMENTS

Hedging 
policy

Malus policy

Minimum 
shareholding 
requirements 
(MSR)

Dividends

Blackout 
Periods

Under the Securities Trading policy, senior executives and other specified team members (Specified 
Persons) may not enter into any derivative (including hedging) transaction that will protect the value 
of either unvested securities or vested securities that are subject to a disposal restriction, issued as part 
of our share plans. Compliance with the policy is a condition of participation in the plans.

The Executive KMP STI and LTI arrangements are subject to malus provisions that enable the Board 
to adjust unpaid and/or unvested awards (including to reduce to zero) where it is appropriate to do so. 
The Board may determine that any unpaid cash STI or unvested DSTI or LTI awards will be forfeited 
in the event of wilful misconduct, dishonesty or severe breach of our Code of Conduct by the executive. 
The Board may also adjust these awards in cases of unexpected or unforeseen events impacting 
performance outcomes, performance with regard to non-financial risk, an outcome which would 
cause significant reputational damage to the Woolworths Group brand, or a broader assessment 
of performance indicating there should be an adjustment. 

•  CEO: 200% of TFR.

•  Other Executive KMP: 100% of TFR.

•  Compliance is required within four years of appointment for the CEO and within five years for 

other Executive KMP. No shares may be sold until the MSR is reached.

•  MSR includes the aggregate value of current shareholdings and unvested DSTI awards for 

Executive KMP.

Shares equivalent to the value of dividends that would have been earned and reinvested over the 
performance period are provided at the time of vesting. No dividend equivalent shares will be provided 
on awards (or portions thereof) that do not vest.

Under the Securities Trading Policy, Specified Persons and their closely related parties must not 
deal in Woolworths Group Securities during a Blackout Period. Blackout Periods operate in the lead 
up to certain key announcements, namely: 

•  Quarter 1 sales results and Woolworths Annual General Meeting.

•  Quarter 3 sales results. 

•  Half and Full Year results. 

The Chairman, on recommendation of the Chief Legal Officer and Company Secretary, may vary 
or impose a restriction during other periods where deemed appropriate. Woolworths Group team 
members, including Specified Persons and their closely related parties, must also not deal in securities 
if they possess inside information, whether or not a Blackout Period applies to them. 

3.4 

OTHER GOVERNANCE REQUIREMENTS

4 NON-EXECUTIVE DIRECTORS’ ARRANGEMENTS

DIRECTORS’ ARRANGEMENTS 4

NON-EXECUTIVE 

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NON-EXECUTIVE DIRECTORS’ REMUNERATION POLICY AND STRUCTURE

Non-executive Director fees are paid from an aggregate annual fee pool of $4,000,000, as approved by shareholders 
at the AGM on 18 November 2010. Total Board and Committee fees paid during F21 were $3,208,114 (refer to Section 5.1 
for individual details). 

Non-executive Directors do not receive variable pay and no directors’ fees are paid to Executive Directors. 

The table below provides a summary of F21 Board and Committee fees:

BOARD AND COMMITTEE FEES ($) 1

Woolworths Group Board
Audit and Finance Committee 2
People Committee 3
Risk Committee 4
Sustainability Committee
Nomination Committee

1  There are no changes to Board and Committee fees for F22.
2  Formerly the Audit, Risk and Compliance Committee.
3  Formerly the People Performance Committee.
4  The Risk Committee was established on 1 May 2021.

CHAIR

MEMBER

F21 FEE 
INCL. SUPER

F21 FEE 
INCL. SUPER

$790,531
$65,000
$65,000
$65,000
$65,000
Nil

$254,990
$32,500
$32,500
$32,500
$32,500
Nil

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NON-EXECUTIVE DIRECTORS’ MINIMUM SHAREHOLDING REQUIREMENT

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Hedging 

policy

Under the Securities Trading policy, senior executives and other specified team members (Specified 

Persons) may not enter into any derivative (including hedging) transaction that will protect the value 

of either unvested securities or vested securities that are subject to a disposal restriction, issued as part 

of our share plans. Compliance with the policy is a condition of participation in the plans.

Malus policy

The Executive KMP STI and LTI arrangements are subject to malus provisions that enable the Board 

to adjust unpaid and/or unvested awards (including to reduce to zero) where it is appropriate to do so. 

The Board may determine that any unpaid cash STI or unvested DSTI or LTI awards will be forfeited 

in the event of wilful misconduct, dishonesty or severe breach of our Code of Conduct by the executive. 

The Board may also adjust these awards in cases of unexpected or unforeseen events impacting 

performance outcomes, performance with regard to non-financial risk, an outcome which would 

cause significant reputational damage to the Woolworths Group brand, or a broader assessment 

of performance indicating there should be an adjustment. 

Minimum 

shareholding 

requirements 

(MSR)

•  CEO: 200% of TFR.

•  Other Executive KMP: 100% of TFR.

•  Compliance is required within four years of appointment for the CEO and within five years for 

other Executive KMP. No shares may be sold until the MSR is reached.

•  MSR includes the aggregate value of current shareholdings and unvested DSTI awards for 

Executive KMP.

Dividends

Shares equivalent to the value of dividends that would have been earned and reinvested over the 

performance period are provided at the time of vesting. No dividend equivalent shares will be provided 

on awards (or portions thereof) that do not vest.

Blackout 

Periods

Under the Securities Trading Policy, Specified Persons and their closely related parties must not 

deal in Woolworths Group Securities during a Blackout Period. Blackout Periods operate in the lead 

up to certain key announcements, namely: 

•  Quarter 1 sales results and Woolworths Annual General Meeting.

•  Quarter 3 sales results. 

•  Half and Full Year results. 

The Chairman, on recommendation of the Chief Legal Officer and Company Secretary, may vary 

or impose a restriction during other periods where deemed appropriate. Woolworths Group team 

members, including Specified Persons and their closely related parties, must also not deal in securities 

if they possess inside information, whether or not a Blackout Period applies to them. 

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Non-executive Directors are required to hold a minimum number of shares for alignment with other shareholders. The minimum 
shareholding requirement is:

•  Chair – 200% of the annual Chair fee by 1 July 2022.

•  Other Non-executive Directors – 100% of the annual base fee within three years of appointment.

The shares or share instruments may be held personally, by a close family member, within a self-managed superannuation fund, 
or by a family trust or private company. 

As of the financial year end, all Non-executive Directors hold, or are on track to achieve, the minimum shareholding 
requirement. Details of the current shareholdings for Non-executive Directors as at 27 June 2021 are provided in Section 5.3.

4.3 

NON-EXECUTIVE DIRECTORS’ EQUITY PLAN

The Non-executive Director equity plan (the plan) was introduced to encourage and facilitate share ownership. The plan 
provides a pre-set automated mechanism for participants to acquire shares, recognising that Non-executive Directors can often 
be limited in their ability to purchase shares because of Australian insider trading laws. Non-executive Director share rights are 
allocated quarterly at the same time as the underlying shares are issued to the plan’s trustee. For Australian-based directors, 
these rights convert into ordinary shares each half year; and for US-based directors, these rights convert into shares at the end 
of the director’s tenure or other prescribed events (with additional shares equivalent to the dividends that would have been 
earned and reinvested on those rights), subject to compliance with the Securities Trading policy. 

The plan supports the minimum shareholding requirement for Board members as it allows Non-executive Directors to reach 
the minimum shareholding requirements more quickly, as shares are acquired on a pre-tax basis. Details of the share rights 
allocated to Non-executive Directors are set out in Section 5.2.

The Group will be seeking shareholder approval to continue this plan for a further three years at the 2021 AGM.

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Remuneration Report

5 KMP STATUTORY DISCLOSURES 

5.1  

KMP REMUNERATION

The table below sets out the remuneration of Non-executive Directors of Woolworths Group Limited. Amounts represent the 
payments relating to the period during which the individuals were KMP.

SHORT-TERM BENEFITS

DIRECTOR FEES 
$

FEES SACRIFICED  
UNDER NEDP 1 
$

NON-MONETARY 
AND OTHER 
BENEFITS 2 
 $

ADJUSTMENT  
DUE TO THE  
IMPACT OF 
DEMERGER 3 
$

POST 
EMPLOYMENT 
BENEFITS 4 
$

 678,837 
 511,423 
 192,964 
 102,595 
 186,738 
 253,740 
 263,532 
 255,970 
 265,096 
 330,817 
 304,238 
 352,424 
 360,947 
 319,990 
 359,990 
 221,657 
 203,031 

 89,985 
 100,003 
 – 
 37,480 
 150,002 
 49,981 
 24,987 
 63,981 
 66,398 
 – 
 – 
 – 
 – 
 – 
 – 
 119,963 
 120,009 

 4,421 
 2,698 
 2,575 
 1,700 
 2,698 
 4,421 
 2,698 
 4,421 
 2,698 
 4,421 
 2,698 
 4,421 
 2,698 
 4,421 
 2,698 
 4,421 
 2,698 

 7,429 
 – 
 – 
 – 
 – 
 13,207 
 – 
 5,076 
 – 
 – 
 – 
 – 
 – 
 – 
 – 
 9,905 
 – 

 21,694 
 21,003 
 12,655 
 – 
 15,752 
 – 
 – 
 21,694 
 21,003 
 5,424 
 15,752 
 5,424 
 10,501 
 – 
 – 
 – 
 10,501 

 TOTAL  
$ 

 802,366 
 635,127 
 208,194 
 141,775 
 355,190 
 321,349 
 291,217 
 351,142 
 355,195 
 340,662 
 322,688 
 362,269 
 374,146 
 324,411 
 362,688 
 355,946 
 336,239 

F21
F20
F21
F21
F20
F21
F20
F21
F20
F21
F20
F21
F20
F21
F20
F21
F20

Non-executive Directors
G M Cairns 5

M N Brenner 6
J R Broadbent, AC 7

J C Carr-Smith 8

H S Kramer

S L McKenna

S R Perkins

K A Tesija 8

M J Ullmer, AO

1  Amounts represent Non-executive Directors’ fees sacrificed in the current period to purchase share rights under the Non-executive Directors’ Equity Plan 

plus amounts sacrificed in previous periods but used to purchase share rights in the current period. Refer to Section 4.3 for further details.

2  Non-monetary and other benefits include the deemed premium in respect of the Directors’ and Officers’ Indemnity insurance and, where applicable, travel 

benefits and associated fringe benefits tax.

3  To maintain the award values, Non-executive Directors received an adjustment increasing the number of share rights under the Non-executive Directors’ 

Equity Plan using a standard formula that has been applied in other comparable demerger situations. Refer to Section 2.3 for further details.

4  Post employment benefits represents superannuation paid directly to the Non-executive Directors’ nominated superannuation fund. If the Group is not 

required to pay superannuation, the payment may be made as cash.

5  The F20 Chairman’s fee of $632,429 (excluding non-monetary and other benefits) reflects the 20% reduction in his Board fee announced to the market 

on 27 November 2019. The F20 approved fee was $790,531.

6  Ms Brenner was appointed as a Non-executive Director on 1 December 2020.
7  Ms Broadbent ceased being a Non-executive Director on 12 November 2020.

8  Ms Carr-Smith’s and Ms Tesija’s Director fees include an Overseas Directors’ allowance of $10,000 per eligible flight during the current and prior period.

70

Remuneration Report

5 KMP STATUTORY DISCLOSURES 

5.1  

KMP REMUNERATION

The table below sets out the remuneration of Non-executive Directors of Woolworths Group Limited. Amounts represent the 

payments relating to the period during which the individuals were KMP.

SHORT-TERM BENEFITS

DIRECTOR FEES 

$

FEES SACRIFICED  

UNDER NEDP 1 

$

NON-MONETARY 

AND OTHER 

BENEFITS 2 

 $

ADJUSTMENT  

DUE TO THE  

IMPACT OF 

DEMERGER 3 

$

POST 

EMPLOYMENT 

BENEFITS 4 

$

Non-executive Directors

G M Cairns 5

M N Brenner 6

J R Broadbent, AC 7

J C Carr-Smith 8

H S Kramer

S L McKenna

S R Perkins

K A Tesija 8

M J Ullmer, AO

F21

F20

F21

F21

F20

F21

F20

F21

F20

F21

F20

F21

F20

F21

F20

F21

F20

 678,837 

 511,423 

 192,964 

 102,595 

 186,738 

 253,740 

 263,532 

 255,970 

 265,096 

 330,817 

 304,238 

 352,424 

 360,947 

 319,990 

 359,990 

 221,657 

 203,031 

 89,985 

 100,003 

 – 

 37,480 

 150,002 

 49,981 

 24,987 

 63,981 

 66,398 

 – 

 – 

 – 

 – 

 – 

 – 

 119,963 

 120,009 

 4,421 

 2,698 

 2,575 

 1,700 

 2,698 

 4,421 

 2,698 

 4,421 

 2,698 

 4,421 

 2,698 

 4,421 

 2,698 

 4,421 

 2,698 

 4,421 

 2,698 

 7,429 

 13,207 

 5,076 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 9,905 

 21,694 

 21,003 

 12,655 

 15,752 

 – 

 – 

 – 

 21,694 

 21,003 

 5,424 

 15,752 

 5,424 

 10,501 

 – 

 – 

 – 

 10,501 

 TOTAL  

$ 

 802,366 

 635,127 

 208,194 

 141,775 

 355,190 

 321,349 

 291,217 

 351,142 

 355,195 

 340,662 

 322,688 

 362,269 

 374,146 

 324,411 

 362,688 

 355,946 

 336,239 

1  Amounts represent Non-executive Directors’ fees sacrificed in the current period to purchase share rights under the Non-executive Directors’ Equity Plan 

plus amounts sacrificed in previous periods but used to purchase share rights in the current period. Refer to Section 4.3 for further details.

2  Non-monetary and other benefits include the deemed premium in respect of the Directors’ and Officers’ Indemnity insurance and, where applicable, travel 

benefits and associated fringe benefits tax.

3  To maintain the award values, Non-executive Directors received an adjustment increasing the number of share rights under the Non-executive Directors’ 

Equity Plan using a standard formula that has been applied in other comparable demerger situations. Refer to Section 2.3 for further details.

4  Post employment benefits represents superannuation paid directly to the Non-executive Directors’ nominated superannuation fund. If the Group is not 

required to pay superannuation, the payment may be made as cash.

5  The F20 Chairman’s fee of $632,429 (excluding non-monetary and other benefits) reflects the 20% reduction in his Board fee announced to the market 

on 27 November 2019. The F20 approved fee was $790,531.

6  Ms Brenner was appointed as a Non-executive Director on 1 December 2020.

7  Ms Broadbent ceased being a Non-executive Director on 12 November 2020.

8  Ms Carr-Smith’s and Ms Tesija’s Director fees include an Overseas Directors’ allowance of $10,000 per eligible flight during the current and prior period.

KMP STATUTORY 
DISCLOSURES

5

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5.1  

KMP REMUNERATION

The table below sets out the remuneration of Executive KMP of Woolworths Group Limited. Amounts represent the payments 
relating to the period during which the individuals were KMP.

SHORT-TERM BENEFITS

SHARE-BASED PAYMENTS 6 , 7

SALARY 1 
$

CASH 
INCENTIVE 2 
$

Executive KMP
B L Banducci

N Davis 10
S J Donohue

S Harrison 11

C E Peters 12

F21
 2,637,799 
F20  2,633,994 
 672,025 
F21
 916,997 
F21
 946,943 
F20

 862,442 
F21
 823,231 
F20
F21
 343,008 
F20  1,325,733 

 1,651,650 
 – 
 407,813 
 611,111 
 336,700 

 519,750 
 285,542 
 187,688 
 455,000 

NON-
MONETARY 
AND OTHER 
BENEFITS 3 
 $

 4,421 
 2,698 
 44,548 
 4,421 
 2,698 

 4,421 
 2,473 
 140,430 
 291,001 

POST 
EMPLOYMENT 
BENEFITS 4 
$

OTHER 
LONG-TERM 
BENEFITS 5 
$

EQUITY 
GRANTS 
AT RISK 8 
$

OTHER  
EQUITY 
GRANTS 9 
$

 TOTAL  
$ 

 25,208 
 25,000 
 55,292 
 25,208 
 25,000 

 25,208 
 22,917 
 – 
 – 

 39,085 
 39,239 
 10,552 
 14,193 
 14,266 

 13,232 
 35,232 
 4,981 
 19,030 

 3,377,492 
 2,247,457 
 977,294 
 1,500,750 
 753,728 

 906,811 
 526,398 
 353,944 
 1,056,467 

 640,772 
 1,160,049 
 185,423 
 618,432 
 186,725 

 143,989 
 – 
 121,064 
 430,808 

 8,376,427 
 6,108,437 
 2,352,947 
 3,691,112 
 2,266,060 

 2,475,853 
 1,695,793 
 1,151,115 
 3,578,039 

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

Salary includes the net change in accrued annual leave within the period and a car allowance.

1 
2  Represents the cash component of the F21 STI, which was 50% of the total STI award.  The remaining 50% is deferred in share rights for two years.
3  Non-monetary and other benefits include the deemed premium in respect of the Directors’ and Officers’ Indemnity insurance and, where applicable, 

relocation benefits and associated fringe benefits tax.

4  Post employment benefits represents superannuation paid directly to the Executive KMP’s nominated superannuation fund. If the Group is not required 

to pay superannuation, the payment may be made as cash.

5  Other long-term benefits represents the net change in accrued long service leave within the period.
6  Represents the portion of the fair value of share rights expected to vest and is recognised as an expense over the vesting period. The amount recognised 

is adjusted to reflect the expected number of instruments that will vest for non-market based performance conditions, including ROFE and sales per square 
metre. No adjustment for non-vesting is made for failure to achieve the relative TSR performance hurdle, as this is taken into account in the fair value 
at grant date.

7  Share-based payments for Mr Donohue in F21 includes the impact of accelerated vesting as a result of the demerger.
8  The fair value of share rights with the relative TSR performance measure is calculated at the date of grant using a Monte Carlo simulation model, whilst 

the fair value of other share rights is calculated using a Black-Scholes option pricing model. 

9  Other equity grants are grants which are not subject to any further performance conditions except continuous employment, subject to the operation of the 

Group’s malus policy.

10  Ms Davis became an Executive KMP on 1 October 2020, after commencing as Managing Director, Woolworths Supermarkets. Amounts represent the 

payments relating to the period in F21 during which Ms Davis was KMP.

11  Mr Harrison became an Executive KMP on 1 August 2019 after commencing as Chief Financial Officer. Amounts represent the payments relating to the period 

in F20 during which Mr Harrison was KMP.

12  Ms Peters ceased to be an Executive KMP on 30 September 2020, when Ms Peters transitioned from the Managing Director, Woolworths Supermarkets role 
to the Managing Director, B2B and Everyday Needs role. Amounts represent the payments relating to the period in F21 during which Ms Peters was KMP.

3

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I

D
R
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'

4

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F
I
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A
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C
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I

5

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E
R

I

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Remuneration Report

5.2 

KMP SHARE RIGHT MOVEMENTS

The table below summarises the share rights granted as part of the Non-executive Directors’ Equity Plan.

SHARE RIGHTS GRANTED  
UNDER THE NON-EXECUTIVE DIRECTORS’ 
EQUITY PLAN

NO.

$ 1

OPENING  
BALANCE  
NO.

SHARE RIGHTS 
VESTED 
NO.

ADJUSTMENT DUE TO THE  
IMPACT OF DEMERGER 2

NO.

$

CLOSING  
BALANCE  
NO.

Non-executive Directors
G M Cairns
M N Brenner
J R Broadbent, AC
J C Carr-Smith
H S Kramer
S L McKenna
S R Perkins
K A Tesija
M J Ullmer, AO

 1,377 
 – 
 2,066 
 688 
 914 
 – 
 – 
 – 
 1,653 

 2,281 
 – 
 1,024 
 1,267 
 1,623 
 – 
 – 
 – 
 3,041 

 89,985 
 – 
 37,480 
 49,981 
 63,981 
 – 
 – 
 – 
 119,963 

(2,563)
 – 
(3,090)
 – 
(1,787)
 – 
 – 
 – 
(3,235)

 180 
 – 
 – 
 320 
 123 
 – 
 – 
 – 
 240 

 7,429 
 – 
 – 
 13,207 
 5,076 
 – 
 – 
 – 
 9,905 

 1,275 
 – 
 – 
 2,275 
 873 
 – 
 – 
 – 
 1,699 

1  Amounts represent Non-executive Directors’ fees sacrificed in the current period to purchase share rights under the Non-executive Directors’ Equity Plan 

plus amounts sacrificed in previous periods but used to purchase share rights in the current period.

2  To maintain the award values, Non-executive Directors received an adjustment increasing the number of share rights under the Non-executive Directors’ 

Equity Plan using a standard formula that has been applied in other comparable demerger situations. Refer to Section 2.3 for further details.

The table below summarises the movements in holdings of share right interests in Woolworths Group Limited relating to the 
period during which individuals were KMP. A share right entitles the holder to one fully paid ordinary Woolworths Group Limited 
share, subject to applicable performance and vesting conditions. 

OPENING  
BALANCE  
NO.

SHARE RIGHTS GRANTED

SHARE RIGHTS VESTED 3

NO. 1

$ 2

NO.

$

SHARE 
RIGHTS 
LAPSED 4  
NO.

ADJUSTMENT DUE TO THE  
IMPACT OF DEMERGER 5

NO.

$

CLOSING  
BALANCE  
NO.

Executive KMP
B L Banducci

N Davis 6
S J Donohue

S Harrison 7

C E Peters 8

F21
 580,116 
F20  731,774 
F21
 116,405 
 192,222 
F21
F20  207,739 
 135,252 
F21
F20
 137,168 
 283,945 
F21
F20  285,839 

 132,150 
 178,034 
 44,619 
 58,353 
 63,308 
 53,155 
 49,717 
 72,688 
 88,152 

 4,014,146 
 5,732,006 
 1,582,286 
 1,745,586 
 1,698,867 
 1,606,953 
 1,282,939 
 2,358,908 
 2,344,926 

 – 

(186,835)
(7,429,935)
(272,170) (9,904,402)
 – 
(48,874) (1,943,590)
(2,252,111)
(61,798)
(1,328,270)
(33,401)
(40,480)
(11,153)
(1,475,217)
(84,125) (3,345,429) (40,056)
(14,563)
(2,709,517)
(75,483)

(77,032)  74,260 
 – 
(57,522)
 26,620 
 – 
 21,073 
(74,241)
(17,027)
 – 
(18,545)  22,556 
 – 
 – 
 – 

 2,711,379 
 – 
 976,697 
 796,854 
 – 
 815,715 
 – 
 – 
 – 

 522,659 
 580,116 
 187,644 
 148,533 
 192,222 
 159,017 
 135,252 
 232,452 
 283,945 

1  The holders of share rights issued in accordance with the Group’s LTI and DSTI awards are entitled to dividends that would have been paid on the underlying 
award over the vesting period, which are received as additional share rights (Dividend Equivalent Rights or DERs) on vesting of the award. DERs vest on the 
same conditions as the underlying LTI or DSTI award to which they relate. The number of share rights granted during the period includes those share rights 
granted in accordance with the period’s LTI and DSTI awards and DERs.

2  Share rights granted is the total fair value of share rights granted during the period determined by an independent actuary. This will be recognised in employee 

benefits expense over the vesting period of the share right, in accordance with Australian Accounting Standards.

3  The value of share rights vested during the period is calculated based on the VWAP of Woolworths Group Limited shares traded in the five days prior to and 

including the date of vesting.

4  The number of share rights which lapsed as a result of failure to meet performance hurdles relates to the F18 LTI plans (F20: F17 LTI plans). In addition, 

for Mr Donohue, the total also includes performance share rights that have lapsed in the F20 and F21 WISP plans as a result of the demerger.

5  To maintain the award values, team members received an adjustment increasing the number of share rights or performance share rights in the on foot plans 

using a standard formula that has been applied in other comparable demerger situations. Refer to Section 2.3 for further details.

6  Ms Davis’ opening balance is as at 1 October 2020, the date on which Ms Davis became an Executive KMP, and includes awards granted prior to the period 

during which Ms Davis was KMP.

7  Mr Harrison’s opening balance in F20 is as at 1 August 2019, the date on which Mr Harrison became an Executive KMP, and includes awards granted prior 

to the period during which Mr Harrison was KMP.

8  Ms Peters’ closing balance is as at 30 September 2020, after which Ms Peters ceased to be an Executive KMP.

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KMP STATUTORY 
DISCLOSURES

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5.2 

KMP SHARE RIGHT MOVEMENTS

5.3  

KMP SHARE MOVEMENTS 

The table below summarises the share rights granted as part of the Non-executive Directors’ Equity Plan.

The table below summarises the movements in F21 of interests in shares of Woolworths Group Limited relating to the period 
during which individuals were KMP.

Non-executive Directors
G M Cairns
M N Brenner 1
J R Broadbent, AC 2
J C Carr-Smith
H S Kramer
S L McKenna
S R Perkins
K A Tesija
M J Ullmer, AO

Executive KMP
B L Banducci
N Davis 3
S J Donohue

S Harrison
C E Peters 4

OPENING  
BALANCE 
NO.

SHARES ISSUED 
UNDER DRP 
NO.

SHARES RECEIVED 
ON VESTING OF 
SHARE RIGHTS 
NO.

SHARES 
PURCHASED/
(DISPOSED) 
NO.

 35,348 
 2,731 
 73,474 
 – 
 11,488 
 10,730 
 17,473 
 8,980 
 27,809 

 195,808 
 98,977 
 26,077 

 25,000 
 22,625 

 770 
 – 
 – 
 – 
 – 
 85 
 – 
 – 
 – 

 – 
 – 
 – 

 – 
 – 

 2,563 
 – 
 3,090 
 – 
 1,787 
 – 
 – 
 – 
 3,235 

 186,835 
 – 
 48,874 

 33,401 
 84,125 

 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 

(50,000)
 – 
(48,874)

 – 
 – 

CLOSING  
BALANCE 
NO.

 38,681 
 2,731 
 76,564 
 – 
 13,275 
 10,815 
 17,473 
 8,980 
 31,044 

 332,643 
 98,977 
 26,077 

 58,401 
 106,750 

SHARE RIGHTS GRANTED

SHARE RIGHTS VESTED 3

to the period during which Ms Brenner was a Non-executive Director.

1  Ms Brenner’s opening balance is as at 1 December 2020, the date on which Ms Brenner became a Non-executive Director, and includes shares acquired prior 

2  Ms Broadbent ceased being a Non-executive Director on 12 November 2020 and the closing balance of shares is as at that date.
3  Ms Davis’ opening balance is as at 1 October 2020, the date on which Ms Davis became an Executive KMP, and includes shares acquired prior to the period 

during which Ms Davis was an Executive KMP.

4  Ms Peters ceased to be an Executive KMP on 30 September 2020 and the closing balance of shares is as at that date.

Non-executive Directors

G M Cairns

M N Brenner

J R Broadbent, AC

J C Carr-Smith

H S Kramer

S L McKenna

S R Perkins

K A Tesija

OPENING  

BALANCE  

NO.

 1,377 

 – 

 2,066 

 688 

 914 

 – 

 – 

 – 

NO.

 2,281 

 – 

 1,024 

 1,267 

 1,623 

 – 

 – 

 – 

SHARE RIGHTS GRANTED  

UNDER THE NON-EXECUTIVE DIRECTORS’ 

EQUITY PLAN

ADJUSTMENT DUE TO THE  

IMPACT OF DEMERGER 2

SHARE RIGHTS 

VESTED 

NO.

$ 1

CLOSING  

BALANCE  

NO.

 89,985 

(2,563)

 180 

 7,429 

 1,275 

NO.

 320 

 123 

 – 

 – 

 – 

 – 

 – 

$

 – 

 – 

 – 

 – 

 – 

 13,207 

 5,076 

 2,275 

 873 

 – 

 – 

 – 

 – 

 – 

 – 

 37,480 

 49,981 

 63,981 

 – 

 – 

 – 

(3,090)

(1,787)

 – 

 – 

 – 

 – 

 – 

M J Ullmer, AO

 1,653 

 3,041 

 119,963 

(3,235)

 240 

 9,905 

 1,699 

1  Amounts represent Non-executive Directors’ fees sacrificed in the current period to purchase share rights under the Non-executive Directors’ Equity Plan 

plus amounts sacrificed in previous periods but used to purchase share rights in the current period.

2  To maintain the award values, Non-executive Directors received an adjustment increasing the number of share rights under the Non-executive Directors’ 

Equity Plan using a standard formula that has been applied in other comparable demerger situations. Refer to Section 2.3 for further details.

The table below summarises the movements in holdings of share right interests in Woolworths Group Limited relating to the 

period during which individuals were KMP. A share right entitles the holder to one fully paid ordinary Woolworths Group Limited 

share, subject to applicable performance and vesting conditions. 

OPENING  

BALANCE  

NO.

NO. 1

$ 2

NO.

$

NO.

$

ADJUSTMENT DUE TO THE  

IMPACT OF DEMERGER 5

SHARE 

RIGHTS 

LAPSED 4  

NO.

CLOSING  

BALANCE  

NO.

Executive KMP

B L Banducci

F21

 580,116 

 132,150 

 4,014,146 

(186,835)

(7,429,935)

(77,032)  74,260 

 2,711,379 

 522,659 

F20  731,774 

 178,034 

 5,732,006 

(272,170) (9,904,402)

(57,522)

 – 

 580,116 

N Davis 6

S J Donohue

F21

F21

 116,405 

 44,619 

 1,582,286 

 – 

 – 

 – 

 26,620 

 976,697 

 187,644 

 192,222 

 58,353 

 1,745,586 

(48,874) (1,943,590)

(74,241)

 21,073 

 796,854 

 148,533 

F20  207,739 

 63,308 

 1,698,867 

(61,798)

(2,252,111)

(17,027)

 – 

 192,222 

S Harrison 7

 135,252 

 53,155 

 1,606,953 

(33,401)

(1,328,270)

(18,545)  22,556 

 815,715 

 159,017 

 137,168 

 49,717 

 1,282,939 

(40,480)

(1,475,217)

(11,153)

C E Peters 8

F21

 283,945 

 72,688 

 2,358,908 

(84,125) (3,345,429) (40,056)

F20  285,839 

 88,152 

 2,344,926 

(75,483)

(2,709,517)

(14,563)

 – 

 – 

 – 

 135,252 

 232,452 

 283,945 

 – 

 – 

 – 

 – 

 – 

F21

F20

1  The holders of share rights issued in accordance with the Group’s LTI and DSTI awards are entitled to dividends that would have been paid on the underlying 

award over the vesting period, which are received as additional share rights (Dividend Equivalent Rights or DERs) on vesting of the award. DERs vest on the 

same conditions as the underlying LTI or DSTI award to which they relate. The number of share rights granted during the period includes those share rights 

granted in accordance with the period’s LTI and DSTI awards and DERs.

2  Share rights granted is the total fair value of share rights granted during the period determined by an independent actuary. This will be recognised in employee 

benefits expense over the vesting period of the share right, in accordance with Australian Accounting Standards.

3  The value of share rights vested during the period is calculated based on the VWAP of Woolworths Group Limited shares traded in the five days prior to and 

including the date of vesting.

4  The number of share rights which lapsed as a result of failure to meet performance hurdles relates to the F18 LTI plans (F20: F17 LTI plans). In addition, 

for Mr Donohue, the total also includes performance share rights that have lapsed in the F20 and F21 WISP plans as a result of the demerger.

5  To maintain the award values, team members received an adjustment increasing the number of share rights or performance share rights in the on foot plans 

using a standard formula that has been applied in other comparable demerger situations. Refer to Section 2.3 for further details.

6  Ms Davis’ opening balance is as at 1 October 2020, the date on which Ms Davis became an Executive KMP, and includes awards granted prior to the period 

7  Mr Harrison’s opening balance in F20 is as at 1 August 2019, the date on which Mr Harrison became an Executive KMP, and includes awards granted prior 

during which Ms Davis was KMP.

to the period during which Mr Harrison was KMP.

8  Ms Peters’ closing balance is as at 30 September 2020, after which Ms Peters ceased to be an Executive KMP.

1

I

H
G
H
L
I
G
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P
E
R
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O
R
M
A
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C
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2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
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4

R
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P
O
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F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

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F
O
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M
A
T
O
N

I

 
 
 
 
 
 
 
 
 
74

Remuneration Report

KMP STATUTORY 

DISCLOSURES

5

5.4 
5.4 

SHARE RIGHTS OUTSTANDING FOR EXECUTIVE KMP
SHARE RIGHTS OUTSTANDING FOR EXECUTIVE KMP

The table below sets out the grants and outstanding number of share rights for current Executive KMP. No amounts were paid  
The table below sets out the grants and outstanding number of share rights for current Executive KMP. No amounts were paid  
or are payable by the recipient on receipt of the share rights and there are no outstanding vested share rights as at 27 June 2021.
or are payable by the recipient on receipt of the share rights and there are no outstanding vested share rights as at 27 June 2021.

AWARD
AWARD

GRANT DATE 1
GRANT DATE 1

PERFORMANCE 
PERFORMANCE 
PERIOD START DATE
PERIOD START DATE

PERFORMANCE  
PERFORMANCE  
PERIOD END DATE 2
PERIOD END DATE 2

 NO. OF RIGHTS 
 NO. OF RIGHTS 
EXCLUDING DERS  
EXCLUDING DERS  
AND IMPACT OF  
AND IMPACT OF  
DEMERGER  
DEMERGER  
AT 27 JUNE 2021 
AT 27 JUNE 2021 

 NO. OF DERS  

 NO. OF DERS  

EXCLUDING  

EXCLUDING  

IMPACT OF  

IMPACT OF  

DEMERGER 

DEMERGER 

 ADJUSTMENT 

 ADJUSTMENT 

DUE TO IMPACT OF 

DUE TO IMPACT OF 

AT 27 JUNE 2021 

AT 27 JUNE 2021 

AT 27 JUNE 2021 

AT 27 JUNE 2021 

AT 27 JUNE 2021 

AT 27 JUNE 2021 

$ 3 

$ 3 

DEMERGER 

DEMERGER 

NO. OF RIGHTS 

NO. OF RIGHTS 

OF AWARD TO VEST 

OF AWARD TO VEST 

 TOTAL  

 TOTAL  

 MAXIMUM VALUE  

 MAXIMUM VALUE  

Executive KMP
Executive KMP
B L Banducci
B L Banducci

N Davis
N Davis

S J Donohue
S J Donohue

S Harrison
S Harrison

F19 LTI
F19 LTI
F19 DSTI
F19 DSTI
F20 WISP
F20 WISP
F21 WISP
F21 WISP

F19 LTI
F19 LTI
F19 DSTI
F19 DSTI
F20 WISP
F20 WISP
F20 DSTI
F20 DSTI
F21 WISP
F21 WISP

F19 LTI
F19 LTI
F19 DSTI
F19 DSTI
F20 WISP
F20 WISP
F20 DSTI
F20 DSTI
F21 WISP
F21 WISP

F19 LTI
F19 LTI
F20 WISP
F20 WISP
F20 DSTI
F20 DSTI
F21 WISP
F21 WISP

21/11/2018
21/11/2018
17/09/2019
17/09/2019
16/12/2019
16/12/2019
12/11/2020
12/11/2020

30/11/2018
30/11/2018
17/09/2019
17/09/2019
01/07/2019
01/07/2019
17/09/2020
17/09/2020
01/07/2020
01/07/2020

30/11/2018
30/11/2018
17/09/2019
17/09/2019
01/07/2019
01/07/2019
17/09/2020
17/09/2020
01/07/2020
01/07/2020

30/11/2018
30/11/2018
01/07/2019
01/07/2019
17/09/2020
17/09/2020
01/07/2020
01/07/2020

01/07/2018
01/07/2018
01/07/2019
01/07/2019
01/07/2019
01/07/2019
01/07/2020
01/07/2020

01/07/2018
01/07/2018
01/07/2019
01/07/2019
01/07/2019
01/07/2019
01/07/2020
01/07/2020
01/07/2020
01/07/2020

01/07/2018
01/07/2018
01/07/2019
01/07/2019
01/07/2019
01/07/2019
01/07/2020
01/07/2020
01/07/2020
01/07/2020

01/07/2018
01/07/2018
01/07/2019
01/07/2019
01/07/2020
01/07/2020
01/07/2020
01/07/2020

01/07/2021
01/07/2021
01/07/2021
01/07/2021
01/07/2022
01/07/2022
01/07/2023
01/07/2023

01/07/2021
01/07/2021
01/07/2021
01/07/2021
01/07/2022
01/07/2022
01/07/2022
01/07/2022
01/07/2023
01/07/2023

01/07/2021
01/07/2021
01/07/2021
01/07/2021
01/07/2022
01/07/2022
01/07/2022
01/07/2022
01/07/2023
01/07/2023

01/07/2021
01/07/2021
01/07/2022
01/07/2022
01/07/2022
01/07/2022
01/07/2023
01/07/2023

 140,194 
 140,194 
 29,313 
 29,313 
 133,049 
 133,049 
 120,557 
 120,557 
 423,113 
 423,113 
 48,899 
 48,899 
 9,831 
 9,831 
 44,622 
 44,622 
 8,324 
 8,324 
 40,433 
 40,433 
 152,109 
 152,109 
 53,946 
 53,946 
 8,874 
 8,874 
 32,698 
 32,698 
 9,183 
 9,183 
 14,746 
 14,746 
 119,447 
 119,447 
 33,751 
 33,751 
 46,055 
 46,055 
 7,875 
 7,875 
 41,731 
 41,731 
 129,412 
 129,412 

 GRANT DATE FAIR VALUE OF PERFORMANCE  
 GRANT DATE FAIR VALUE OF PERFORMANCE  
SHARE RIGHT4 
SHARE RIGHT4 

 MODIFIED FAIR VALUE OF PERFORMANCE 
 MODIFIED FAIR VALUE OF PERFORMANCE 
SHARE RIGHT5 
SHARE RIGHT5 

 CEO 
 CEO 

 SALES PER  
 SALES PER  
TRADING 
TRADING 
SQM AND 
SQM AND 
ROFE 
ROFE 

 $29.67 
 $29.67 
 – 
 – 
 $38.37 
 $38.37 
 – 
 – 
 $38.88 
 $38.88 

 OTHER KMP 
 OTHER KMP 

 SALES PER  
 SALES PER  
TRADING 
TRADING 
SQM AND 
SQM AND 
ROFE 
ROFE 

 $29.72 
 $29.72 
 – 
 – 
 $33.02 
 $33.02 
 – 
 – 
 $36.90 
 $36.90 

 DSTI 
 DSTI 

 TSR 
 TSR 

 – 
 – 
 $36.91 
 $36.91 
 – 
 – 
 – 
 – 
 – 
 – 

 $14.46 
 $14.46 
 – 
 – 
 $17.53 
 $17.53 
 – 
 – 
 $21.07 
 $21.07 

 ALL KMP 
 ALL KMP 

 SALES PER  
 SALES PER  
TRADING 
TRADING 
SQM AND 
SQM AND 
ROFE 
ROFE 

 $43.10 
 $43.10 
 – 
 – 
 $40.89 
 $40.89 
 – 
 – 
 $39.22 
 $39.22 

 DSTI 
 DSTI 

 – 
 – 
 $40.89 
 $40.89 
 – 
 – 
 $39.22 
 $39.22 
 – 
 – 

 DSTI 
 DSTI 

 TSR 
 TSR 

 – 
 – 
 $36.91 
 $36.91 
 – 
 – 
 $36.48 
 $36.48 
 – 
 – 

 $43.10 
 $43.10 
 – 
 – 
 $37.41 
 $37.41 
 – 
 – 
 $18.01 
 $18.01 

F19 LTI
F19 LTI
F19 DSTI
F19 DSTI
F20 WISP
F20 WISP
F20 DSTI
F20 DSTI
F21 WISP
F21 WISP

 TSR 
 TSR 

 $13.65 
 $13.65 
 – 
 – 
 $28.11 
 $28.11 
 – 
 – 
 $22.13 
 $22.13 

 13,091 

 13,091 

 1,620 

 1,620 

 7,357 

 7,357 

 3,218 

 3,218 

 25,286 

 25,286 

 4,604 

 4,604 

 543 

 543 

 2,467 

 2,467 

 222 

 222 

 1,079 

 1,079 

 8,915 

 8,915 

 5,081 

 5,081 

 489 

 489 

 1,806 

 1,806 

 245 

 245 

 392 

 392 

 8,013 

 8,013 

 3,179 

 3,179 

 2,546 

 2,546 

 210 

 210 

 1,114 

 1,114 

 7,049 

 7,049 

 26,620 

 26,620 

 187,644 

 187,644 

 25,477 

 25,477 

 5,113 

 5,113 

 23,209 

 23,209 

 20,461 

 20,461 

 74,260 

 74,260 

 8,848 

 8,848 

 1,715 

 1,715 

 7,784 

 7,784 

 1,412 

 1,412 

 6,861 

 6,861 

 9,759 

 9,759 

 1,548 

 1,548 

 5,706 

 5,706 

 1,557 

 1,557 

 2,503 

 2,503 

 21,073 

 21,073 

 6,105 

 6,105 

 8,034 

 8,034 

 1,335 

 1,335 

 7,082 

 7,082 

 22,556 

 22,556 

 178,762 

 178,762 

 36,046 

 36,046 

 163,615 

 163,615 

 144,236 

 144,236 

 522,659 

 522,659 

 62,351 

 62,351 

 12,089 

 12,089 

 54,873 

 54,873 

 9,958 

 9,958 

 48,373 

 48,373 

 68,786 

 68,786 

 10,911 

 10,911 

 40,210 

 40,210 

 10,985 

 10,985 

 17,641 

 17,641 

 148,533 

 148,533 

 43,035 

 43,035 

 56,635 

 56,635 

 9,420 

 9,420 

 49,927 

 49,927 

 159,017 

 159,017 

 4,409,719 

 4,409,719 

 1,280,055 

 1,280,055 

 5,523,845 

 5,523,845 

 4,654,831 

 4,654,831 

 15,868,450 

 15,868,450 

 1,552,922 

 1,552,922 

 429,308 

 429,308 

 1,536,068 

 1,536,068 

 357,627 

 357,627 

 1,493,484 

 1,493,484 

 5,369,409 

 5,369,409 

 1,713,193 

 1,713,193 

 387,484 

 387,484 

 1,125,598 

 1,125,598 

 394,493 

 394,493 

 544,668 

 544,668 

 4,165,436 

 4,165,436 

 1,071,855 

 1,071,855 

 1,585,403 

 1,585,403 

 338,305 

 338,305 

 1,541,444 

 1,541,444 

 4,537,007 

 4,537,007 

75

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

The minimum value of share rights is assessed as nil and has not been specifically detailed in the table above on the basis that 
no share rights will vest unless the performance or vesting criteria are satisfied.

1  Grant date is the date on which there is a shared understanding of the terms and conditions of the share-based payment arrangement.
2  Exercise of share rights will occur the day after the full year results are announced to the market. 
3  The maximum value of award to vest represents the total maximum value of employee benefits expense, as based on the value at grant date that would 

be recorded if all share rights which remain outstanding at 27 June 2021 satisfied all relevant vesting conditions.

4  The fair value of share rights with the relative TSR performance measure is calculated at the date of grant using a Monte Carlo simulation model, taking into 

account the impact of the relative TSR condition whilst the fair value of other share rights are calculated using a Black-Scholes option pricing model. The value 

disclosed is an input to the calculation of the grant date fair value of the share rights recognised as an expense in each reporting period. No performance 

conditions, other than ongoing employment, are attached to Deferred STI share rights awards, subject to the operation of the Group’s malus policy.

5  The modified fair value of performance share rights has been determined at 24 June 2021, being the date the team members received an adjustment 

increasing the number of share rights in the on foot plans. The relative TSR performance measure is calculated using a Monte Carlo simulation model, taking 

into account the impact of the relative TSR condition whilst the fair value of other share rights are calculated using a Black-Scholes option pricing model. The 

value disclosed is an input to the calculation of the value of the share rights recognised as an expense in each reporting period.

 
 
 
 
 
 
 
 
 
AWARD

AWARD

GRANT DATE 1

GRANT DATE 1

PERIOD START DATE

PERIOD START DATE

PERFORMANCE 

PERFORMANCE 

PERFORMANCE  

PERFORMANCE  

PERIOD END DATE 2

PERIOD END DATE 2

 NO. OF RIGHTS 

 NO. OF RIGHTS 

EXCLUDING DERS  

EXCLUDING DERS  

AND IMPACT OF  

AND IMPACT OF  

DEMERGER  

DEMERGER  

AT 27 JUNE 2021 

AT 27 JUNE 2021 

 NO. OF DERS  
 NO. OF DERS  
EXCLUDING  
EXCLUDING  
IMPACT OF  
IMPACT OF  
DEMERGER 
DEMERGER 
AT 27 JUNE 2021 
AT 27 JUNE 2021 

 ADJUSTMENT 
 ADJUSTMENT 
DUE TO IMPACT OF 
DUE TO IMPACT OF 
DEMERGER 
DEMERGER 
AT 27 JUNE 2021 
AT 27 JUNE 2021 

 TOTAL  
 TOTAL  
NO. OF RIGHTS 
NO. OF RIGHTS 
AT 27 JUNE 2021 
AT 27 JUNE 2021 

 MAXIMUM VALUE  
 MAXIMUM VALUE  
OF AWARD TO VEST 
OF AWARD TO VEST 
$ 3 
$ 3 

 13,091 
 13,091 
 1,620 
 1,620 
 7,357 
 7,357 
 3,218 
 3,218 
 25,286 
 25,286 
 4,604 
 4,604 
 543 
 543 
 2,467 
 2,467 
 222 
 222 
 1,079 
 1,079 
 8,915 
 8,915 
 5,081 
 5,081 
 489 
 489 
 1,806 
 1,806 
 245 
 245 
 392 
 392 
 8,013 
 8,013 
 3,179 
 3,179 
 2,546 
 2,546 
 210 
 210 
 1,114 
 1,114 
 7,049 
 7,049 

 25,477 
 25,477 
 5,113 
 5,113 
 23,209 
 23,209 
 20,461 
 20,461 
 74,260 
 74,260 
 8,848 
 8,848 
 1,715 
 1,715 
 7,784 
 7,784 
 1,412 
 1,412 
 6,861 
 6,861 
 26,620 
 26,620 
 9,759 
 9,759 
 1,548 
 1,548 
 5,706 
 5,706 
 1,557 
 1,557 
 2,503 
 2,503 
 21,073 
 21,073 
 6,105 
 6,105 
 8,034 
 8,034 
 1,335 
 1,335 
 7,082 
 7,082 
 22,556 
 22,556 

 178,762 
 178,762 
 36,046 
 36,046 
 163,615 
 163,615 
 144,236 
 144,236 
 522,659 
 522,659 
 62,351 
 62,351 
 12,089 
 12,089 
 54,873 
 54,873 
 9,958 
 9,958 
 48,373 
 48,373 
 187,644 
 187,644 
 68,786 
 68,786 
 10,911 
 10,911 
 40,210 
 40,210 
 10,985 
 10,985 
 17,641 
 17,641 
 148,533 
 148,533 
 43,035 
 43,035 
 56,635 
 56,635 
 9,420 
 9,420 
 49,927 
 49,927 
 159,017 
 159,017 

 4,409,719 
 4,409,719 
 1,280,055 
 1,280,055 
 5,523,845 
 5,523,845 
 4,654,831 
 4,654,831 
 15,868,450 
 15,868,450 
 1,552,922 
 1,552,922 
 429,308 
 429,308 
 1,536,068 
 1,536,068 
 357,627 
 357,627 
 1,493,484 
 1,493,484 
 5,369,409 
 5,369,409 
 1,713,193 
 1,713,193 
 387,484 
 387,484 
 1,125,598 
 1,125,598 
 394,493 
 394,493 
 544,668 
 544,668 
 4,165,436 
 4,165,436 
 1,071,855 
 1,071,855 
 1,585,403 
 1,585,403 
 338,305 
 338,305 
 1,541,444 
 1,541,444 
 4,537,007 
 4,537,007 

KMP STATUTORY 
DISCLOSURES

5

75

A
N
N
U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

74

Remuneration Report

5.4 

5.4 

SHARE RIGHTS OUTSTANDING FOR EXECUTIVE KMP

SHARE RIGHTS OUTSTANDING FOR EXECUTIVE KMP

The table below sets out the grants and outstanding number of share rights for current Executive KMP. No amounts were paid  

The table below sets out the grants and outstanding number of share rights for current Executive KMP. No amounts were paid  

or are payable by the recipient on receipt of the share rights and there are no outstanding vested share rights as at 27 June 2021.

or are payable by the recipient on receipt of the share rights and there are no outstanding vested share rights as at 27 June 2021.

Executive KMP

Executive KMP

B L Banducci

B L Banducci

N Davis

N Davis

S J Donohue

S J Donohue

S Harrison

S Harrison

F19 LTI

F19 LTI

F19 DSTI

F19 DSTI

F20 WISP

F20 WISP

F21 WISP

F21 WISP

F19 LTI

F19 LTI

F19 DSTI

F19 DSTI

F20 WISP

F20 WISP

F20 DSTI

F20 DSTI

F21 WISP

F21 WISP

F19 LTI

F19 LTI

F19 DSTI

F19 DSTI

F20 WISP

F20 WISP

F20 DSTI

F20 DSTI

F21 WISP

F21 WISP

F19 LTI

F19 LTI

F20 WISP

F20 WISP

F20 DSTI

F20 DSTI

F21 WISP

F21 WISP

21/11/2018

21/11/2018

17/09/2019

17/09/2019

16/12/2019

16/12/2019

12/11/2020

12/11/2020

30/11/2018

30/11/2018

17/09/2019

17/09/2019

01/07/2019

01/07/2019

17/09/2020

17/09/2020

01/07/2020

01/07/2020

30/11/2018

30/11/2018

17/09/2019

17/09/2019

01/07/2019

01/07/2019

17/09/2020

17/09/2020

01/07/2020

01/07/2020

30/11/2018

30/11/2018

01/07/2019

01/07/2019

17/09/2020

17/09/2020

01/07/2020

01/07/2020

01/07/2018

01/07/2018

01/07/2019

01/07/2019

01/07/2019

01/07/2019

01/07/2020

01/07/2020

01/07/2018

01/07/2018

01/07/2019

01/07/2019

01/07/2019

01/07/2019

01/07/2020

01/07/2020

01/07/2020

01/07/2020

01/07/2018

01/07/2018

01/07/2019

01/07/2019

01/07/2019

01/07/2019

01/07/2020

01/07/2020

01/07/2020

01/07/2020

01/07/2018

01/07/2018

01/07/2019

01/07/2019

01/07/2020

01/07/2020

01/07/2020

01/07/2020

01/07/2021

01/07/2021

01/07/2021

01/07/2021

01/07/2022

01/07/2022

01/07/2023

01/07/2023

01/07/2021

01/07/2021

01/07/2021

01/07/2021

01/07/2022

01/07/2022

01/07/2022

01/07/2022

01/07/2023

01/07/2023

01/07/2021

01/07/2021

01/07/2021

01/07/2021

01/07/2022

01/07/2022

01/07/2022

01/07/2022

01/07/2023

01/07/2023

01/07/2021

01/07/2021

01/07/2022

01/07/2022

01/07/2022

01/07/2022

01/07/2023

01/07/2023

 140,194 

 140,194 

 29,313 

 29,313 

 133,049 

 133,049 

 120,557 

 120,557 

 423,113 

 423,113 

 48,899 

 48,899 

 9,831 

 9,831 

 44,622 

 44,622 

 8,324 

 8,324 

 40,433 

 40,433 

 152,109 

 152,109 

 53,946 

 53,946 

 8,874 

 8,874 

 32,698 

 32,698 

 9,183 

 9,183 

 14,746 

 14,746 

 119,447 

 119,447 

 33,751 

 33,751 

 46,055 

 46,055 

 7,875 

 7,875 

 41,731 

 41,731 

 129,412 

 129,412 

 GRANT DATE FAIR VALUE OF PERFORMANCE  

 GRANT DATE FAIR VALUE OF PERFORMANCE  

 MODIFIED FAIR VALUE OF PERFORMANCE 

 MODIFIED FAIR VALUE OF PERFORMANCE 

SHARE RIGHT4 

SHARE RIGHT4 

 CEO 

 CEO 

 SALES PER  

 SALES PER  

TRADING 

TRADING 

SQM AND 

SQM AND 

ROFE 

ROFE 

 OTHER KMP 

 OTHER KMP 

 SALES PER  

 SALES PER  

TRADING 

TRADING 

SQM AND 

SQM AND 

ROFE 

ROFE 

SHARE RIGHT5 

SHARE RIGHT5 

 ALL KMP 

 ALL KMP 

 SALES PER  

 SALES PER  

TRADING 

TRADING 

SQM AND 

SQM AND 

ROFE 

ROFE 

 TSR 

 TSR 

 DSTI 

 DSTI 

 TSR 

 TSR 

 DSTI 

 DSTI 

 TSR 

 TSR 

 DSTI 

 DSTI 

F19 LTI

F19 LTI

F19 DSTI

F19 DSTI

F20 WISP

F20 WISP

F20 DSTI

F20 DSTI

F21 WISP

F21 WISP

 $13.65 

 $13.65 

 $29.67 

 $29.67 

 $14.46 

 $14.46 

 $29.72 

 $29.72 

 $43.10 

 $43.10 

 $43.10 

 $43.10 

 $28.11 

 $28.11 

 $38.37 

 $38.37 

 $17.53 

 $17.53 

 $33.02 

 $33.02 

 $37.41 

 $37.41 

 $40.89 

 $40.89 

 – 

 – 

 – 

 – 

 $36.91 

 $36.91 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 $36.91 

 $36.91 

 $36.48 

 $36.48 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 $40.89 

 $40.89 

 $39.22 

 $39.22 

 – 

 – 

 – 

 – 

 – 

 – 

 $22.13 

 $22.13 

 $38.88 

 $38.88 

 $21.07 

 $21.07 

 $36.90 

 $36.90 

 $18.01 

 $18.01 

 $39.22 

 $39.22 

 – 

 – 

 – 

 – 

The minimum value of share rights is assessed as nil and has not been specifically detailed in the table above on the basis that 

no share rights will vest unless the performance or vesting criteria are satisfied.

1  Grant date is the date on which there is a shared understanding of the terms and conditions of the share-based payment arrangement.

2  Exercise of share rights will occur the day after the full year results are announced to the market. 

3  The maximum value of award to vest represents the total maximum value of employee benefits expense, as based on the value at grant date that would 

be recorded if all share rights which remain outstanding at 27 June 2021 satisfied all relevant vesting conditions.

4  The fair value of share rights with the relative TSR performance measure is calculated at the date of grant using a Monte Carlo simulation model, taking into 

account the impact of the relative TSR condition whilst the fair value of other share rights are calculated using a Black-Scholes option pricing model. The value 
disclosed is an input to the calculation of the grant date fair value of the share rights recognised as an expense in each reporting period. No performance 
conditions, other than ongoing employment, are attached to Deferred STI share rights awards, subject to the operation of the Group’s malus policy.
5  The modified fair value of performance share rights has been determined at 24 June 2021, being the date the team members received an adjustment 

increasing the number of share rights in the on foot plans. The relative TSR performance measure is calculated using a Monte Carlo simulation model, taking 
into account the impact of the relative TSR condition whilst the fair value of other share rights are calculated using a Black-Scholes option pricing model. The 
value disclosed is an input to the calculation of the value of the share rights recognised as an expense in each reporting period.

N
F
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I

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76

Auditor’s Independence Declaration

Deloitte Touche Tohmatsu
A.C.N. 74 490 121 060 

Grosvenor Place
225 George Street
Sydney NSW 2000
PO Box N250 Grosvenor Place
Sydney NSW 1217 Australia 

DX: 10307SSE
Tel: +61 (0) 2 9322 7000
Fax: +61 (0) 2 9322 7001
www.deloitte.com.au

The Board of Directors
Woolworths Group Limited
1 Woolworths Way
Bella Vista
NSW 2153 

26 August 2021

Dear Board Members

Auditor’s Independence Declaration

In accordance with section 307C of the Corporations Act 2001, we are pleased to provide the following declaration 
of independence to the Directors of Woolworths Group Limited.

As lead audit partners for the audit of the financial report of Woolworths Group Limited for the year ended 27 June 2021, 
we declare that to the best of our knowledge and belief, there have been no contraventions of:

(i)  the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

(ii) any applicable code of professional conduct in relation to the audit.

Yours sincerely

DELOITTE TOUCHE TOHMATSU

A V Griffiths 
Partner 
Chartered Accountants 

Sydney, 26 August 2021 

T C Elliott 
Partner 
Chartered Accountants

Sydney, 26 August 2021

Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.

2021 Financial Report 

Table of Contents

$55,694M 

Revenue from the sale of goods and 

services from continuing operations 

4.9% increase from 2020.

SEE PAGE 89

QUANTIUM 

ACQUISITION

On 31 May 2021, the Group acquired an 

additional equity interest in Quantium 

resulting in the Group gaining control 

of Quantium. Detailed disclosure of this 

acquisition is included in Note 5.1.

SEE PAGE 129

ENDEAVOUR 

DEMERGER

On 18 June 2021, the Group obtained 

shareholder approval for the separation 

of Endeavour Group. Detailed disclosure 

of Endeavour Group as a discontinued 

operation is included in Note 5.2.

SEE PAGE 132

Consolidated Financial Statements

Consolidated Statement of Profit or Loss

Consolidated Statement of Other Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

1

BASIS OF PREPARATION

Basis of preparation

Significant accounting policies

Critical accounting estimates and judgements

Individually significant items

Financial reporting impacts of COVID-19

2 GROUP PERFORMANCE

2.1

Revenue from the sale of goods and services from 

continuing operations

Segment disclosures from continuing operations

Finance costs from continuing operations

1.1

1.2

1.3

1.4

1.5

2.2

2.3

3.3

3.4

3.5

3.6

3.7

3 ASSETS AND LIABILITIES

3.1

Trade and other receivables

3.2 Other financial assets and liabilities

Leases

Property, plant and equipment 

Intangible assets 

Impairment of non-financial assets 

Income taxes

3.8 Trade and other payables

3.9

Provisions

4.1

Earnings per share

4.2 Dividends

4.3 Contributed equity

4.4 Reserves

4.5 Cash and cash equivalents

Borrowings

4.6

4.7

Financial risk management

4.8 Commitments for capital expenditure

5 GROUP STRUCTURE

5.1 Acquisition of subsidiary

5.2 Discontinued operations

5.4

5.5

5.6

Subsidiaries

Parent entity information

Related parties

6 OTHER

6.1

6.2

Contingent liabilities

Employee benefits

6.3 Auditors’ remuneration

6.4 Subsequent events

Directors’ Declaration

Independent Auditor’s Report

4 CAPITAL STRUCTURE, FINANCING, AND RISK MANAGEMENT

5.3 Assets held for sale or distribution and associated liabilities

78

79

80

81

82

83

84

86

87

88

89

90

92

93

94

96

100

102

104

107

110

110

113

114

115

116

118

119

122

128

129

132

134

136

141

142

143

143

148

149

152

153

77

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0

2

1

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P

1

H

I

G

H

L

I

G

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S

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F

O

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M

A

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C

E

2

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B

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I

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E

S

S

3

R

E

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O

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T

D

I

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E

C

T

O

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'

4

R

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F

I

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C

I

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5

O

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H

E

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F

O

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M

A

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76

Auditor’s Independence Declaration

2021 Financial Report 
Table of Contents

77

A
N
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U
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2
0
2
1

W
O
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W
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G
R
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U
P

Deloitte Touche Tohmatsu

A.C.N. 74 490 121 060 

Grosvenor Place

225 George Street

Sydney NSW 2000

PO Box N250 Grosvenor Place

Sydney NSW 1217 Australia 

DX: 10307SSE

Tel: +61 (0) 2 9322 7000

Fax: +61 (0) 2 9322 7001

www.deloitte.com.au

The Board of Directors

Woolworths Group Limited

1 Woolworths Way

Bella Vista

NSW 2153 

26 August 2021

Dear Board Members

Auditor’s Independence Declaration

Yours sincerely

DELOITTE TOUCHE TOHMATSU

In accordance with section 307C of the Corporations Act 2001, we are pleased to provide the following declaration 

of independence to the Directors of Woolworths Group Limited.

As lead audit partners for the audit of the financial report of Woolworths Group Limited for the year ended 27 June 2021, 

we declare that to the best of our knowledge and belief, there have been no contraventions of:

(i)  the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

(ii) any applicable code of professional conduct in relation to the audit.

A V Griffiths 

Partner 

Chartered Accountants 

Sydney, 26 August 2021 

T C Elliott 

Partner 

Chartered Accountants

Sydney, 26 August 2021

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Asia Pacific Limited and the Deloitte organisation.

$55,694M 
Revenue from the sale of goods and 
services from continuing operations 
4.9% increase from 2020.

SEE PAGE 89

QUANTIUM 
ACQUISITION

On 31 May 2021, the Group acquired an 
additional equity interest in Quantium 
resulting in the Group gaining control 
of Quantium. Detailed disclosure of this 
acquisition is included in Note 5.1.

SEE PAGE 129

Consolidated Financial Statements
Consolidated Statement of Profit or Loss
Consolidated Statement of Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

1

BASIS OF PREPARATION

1.1
1.2
1.3
1.4
1.5

Basis of preparation
Significant accounting policies
Critical accounting estimates and judgements
Individually significant items
Financial reporting impacts of COVID-19

2 GROUP PERFORMANCE

2.1

2.2
2.3

Revenue from the sale of goods and services from 
continuing operations
Segment disclosures from continuing operations
Finance costs from continuing operations

3 ASSETS AND LIABILITIES

Trade and other receivables
3.1
3.2 Other financial assets and liabilities
3.3
3.4
3.5
3.6
3.7
3.8 Trade and other payables
3.9

Leases
Property, plant and equipment 
Intangible assets 
Impairment of non-financial assets 
Income taxes

Provisions

4 CAPITAL STRUCTURE, FINANCING, AND RISK MANAGEMENT

Earnings per share

4.1
4.2 Dividends
4.3 Contributed equity
4.4 Reserves
4.5 Cash and cash equivalents
4.6
4.7
4.8 Commitments for capital expenditure

Borrowings
Financial risk management

ENDEAVOUR 
DEMERGER

On 18 June 2021, the Group obtained 
shareholder approval for the separation 
of Endeavour Group. Detailed disclosure 
of Endeavour Group as a discontinued 
operation is included in Note 5.2.

SEE PAGE 132

5 GROUP STRUCTURE

5.1 Acquisition of subsidiary
5.2 Discontinued operations
5.3 Assets held for sale or distribution and associated liabilities
5.4
5.5
5.6

Subsidiaries
Parent entity information
Related parties

6 OTHER
Contingent liabilities
6.1
Employee benefits
6.2
6.3 Auditors’ remuneration
6.4 Subsequent events

Directors’ Declaration

Independent Auditor’s Report

78
79
80
81
82

83
84
86
87
88

89
90
92

93
94
96
100
102
104
107
110
110

113
114
115
116
118
119
122
128

129
132
134
136
141
142

143
143
148
149

152

153

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2

R
E
V
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E

W

B
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S
I
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E
S
S

3

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E
P
O
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T

I

D
R
E
C
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'

4

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E
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T

F
I
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A
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I

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78

Consolidated Statement of Profit or Loss

Consolidated Statement of Other Comprehensive Income

Continuing operations
Revenue from the sale of goods and services
Cost of sales
Gross profit
Other revenue
Branch expenses
Administration expenses
Earnings before interest and tax
Finance costs
Profit before income tax
Income tax expense
Profit for the period from continuing operations
Discontinued operations
Profit for the period from discontinued operations, after tax 
Profit for the period

Profit for the period attributable to:
Equity holders of the parent entity
Non-controlling interests

Profit for the period attributable to equity holders of the parent entity related to:
Profit from continuing operations
Profit from discontinued operations

NOTE

2.1

2.3

3.7.1

5.2

2021
$M

RESTATED1 
2020
$M

 55,694 
(39,366)
 16,328 
 117 
(9,838)
(3,784)
 2,823 
(613)
 2,210 
(604)
 1,606 

 53,080 
(37,750)
 15,330 
 148 
(9,564)
(3,888)
 2,026 
(671)
 1,355 
(417)
 938 

 533 
 2,139 

 271 
 1,209 

 2,074 
 65 
 2,139 

 1,606 
 468 
 2,074 

 1,165 
 44 
 1,209 

 928 
 237 
 1,165 

Profit for the period

Other comprehensive income

Items that may be subsequently reclassified to profit or loss, net of tax

Effective portion of changes in the fair value of cash flow hedges

Foreign currency translation of foreign operations

Items that will not be subsequently reclassified to profit or loss, net of tax

Fair value (loss)/gain on equity investments designated as at fair value through 

other comprehensive income

Actuarial (loss)/gain on defined benefit superannuation plans

Other comprehensive income/(loss) for the period, net of tax

Total comprehensive income for the period

Total comprehensive income for the period attributable to:

Equity holders of the parent entity

Non-controlling interests

Total comprehensive income for the period from continuing operations attributable to:

Equity holders of the parent entity

Non-controlling interests

1  Refer to Note 1.1 for further details.

2021

$M

RESTATED1 

2020

$M

 2,139 

 1,209 

 25 

(9)

(9)

(54)

(5)

(11)

 – 

 2,139 

 2,076 

 63 

 2,139 

 1,619 

 – 

 1,619 

 1 

 4 

(58)

 1,151 

 1,109 

 42 

 1,151 

 872 

 10 

 882 

 CENTS 

 CENTS 

Notes to the Consolidated Financial Statements.

The above Consolidated Statement of Other Comprehensive Income should be read in conjunction with the accompanying 

Earnings per share (EPS) attributable to equity holders of the parent entity
Basic EPS
Diluted EPS
EPS attributable to equity holders of the parent entity from continuing operations
Basic EPS
Diluted EPS

1  Refer to Note 1.1 for further details.

4.1
4.1

4.1
4.1

 165.0 
 164.2 

 127.7 
 127.1 

 92.7 
 92.2 

 73.9 
 73.5 

The above Consolidated Statement of Profit or Loss should be read in conjunction with the accompanying Notes to the 
Consolidated Financial Statements.

79

A

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U

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2

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W

O

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1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

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W

B

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S

I

N

E

S

S

3

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P

O

R

T

D

I

R

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C

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O

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S

'

4

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F

I

N

A

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L

5

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78

Consolidated Statement of Profit or Loss

Consolidated Statement of Other Comprehensive Income

79

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U
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2
1

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W
O
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T
H
S
G
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Continuing operations

Revenue from the sale of goods and services

Cost of sales

Gross profit

Other revenue

Branch expenses

Administration expenses

Earnings before interest and tax

Finance costs

Profit before income tax

Income tax expense

Profit for the period from continuing operations

Discontinued operations

Profit for the period from discontinued operations, after tax 

Profit for the period

Profit for the period attributable to equity holders of the parent entity related to:

Earnings per share (EPS) attributable to equity holders of the parent entity

EPS attributable to equity holders of the parent entity from continuing operations

Profit for the period attributable to:

Equity holders of the parent entity

Non-controlling interests

Profit from continuing operations

Profit from discontinued operations

Basic EPS

Diluted EPS

Basic EPS

Diluted EPS

1  Refer to Note 1.1 for further details.

Consolidated Financial Statements.

2021

$M

RESTATED1 

2020

$M

 55,694 

(39,366)

 16,328 

 117 

(9,838)

(3,784)

 2,823 

(613)

 2,210 

(604)

 1,606 

 53,080 

(37,750)

 15,330 

 148 

(9,564)

(3,888)

 2,026 

(671)

 1,355 

(417)

 938 

 533 

 2,139 

 271 

 1,209 

 2,074 

 65 

 2,139 

 1,606 

 468 

 2,074 

 165.0 

 164.2 

 127.7 

 127.1 

 1,165 

 44 

 1,209 

 928 

 237 

 1,165 

 92.7 

 92.2 

 73.9 

 73.5 

NOTE

2.1

2.3

3.7.1

5.2

4.1

4.1

4.1

4.1

The above Consolidated Statement of Profit or Loss should be read in conjunction with the accompanying Notes to the 

Profit for the period
Other comprehensive income

Items that may be subsequently reclassified to profit or loss, net of tax
Effective portion of changes in the fair value of cash flow hedges
Foreign currency translation of foreign operations

Items that will not be subsequently reclassified to profit or loss, net of tax
Fair value (loss)/gain on equity investments designated as at fair value through 
other comprehensive income
Actuarial (loss)/gain on defined benefit superannuation plans
Other comprehensive income/(loss) for the period, net of tax
Total comprehensive income for the period

Total comprehensive income for the period attributable to:
Equity holders of the parent entity
Non-controlling interests

Total comprehensive income for the period from continuing operations attributable to:
Equity holders of the parent entity
Non-controlling interests

1  Refer to Note 1.1 for further details.

2021
$M

RESTATED1 
2020
$M

 2,139 

 1,209 

 25 
(9)

(9)
(54)

(5)
(11)
 – 
 2,139 

 2,076 
 63 
 2,139 

 1,619 
 – 
 1,619 

 1 
 4 
(58)
 1,151 

 1,109 
 42 
 1,151 

 872 
 10 
 882 

 CENTS 

 CENTS 

The above Consolidated Statement of Other Comprehensive Income should be read in conjunction with the accompanying 
Notes to the Consolidated Financial Statements.

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
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E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
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T

I

D
R
E
C
T
O
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S

'

4

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E
P
O
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T

F
I
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A
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I

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80

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets

Assets held for sale or distribution
Total current assets
Non‑current assets
Trade and other receivables
Other financial assets
Lease assets
Property, plant and equipment
Intangible assets
Investments in associates
Deferred tax assets
Other non-current assets
Total non‑current assets
Total assets
Current liabilities
Trade and other payables
Lease liabilities
Borrowings
Current tax payable
Other financial liabilities
Provisions
Other current liabilities

Liabilities associated with assets held for distribution
Total current liabilities
Non‑current liabilities
Lease liabilities
Borrowings
Other financial liabilities
Deferred tax liabilities
Provisions
Other non-current liabilities
Total non‑current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Retained earnings
Equity attributable to equity holders of the parent entity
Non-controlling interests
Total equity

1  Refer to Note 1.1 for further details.

NOTE

4.5.1
3.1

3.2

5.3.1

3.1
3.2
3.3.1
3.4
3.5

3.7.3

3.8
3.3.2
4.6.3

3.2
3.9
5.3.2

5.3.1

3.3.2
4.6.3
3.2
3.7.3
3.9

4.3
4.4

5.4.3

2021
$M

RESTATED1
2020
$M

 1,009 
 649 
 3,132 
 19 
 18 
 4,827 
 10,959 
 15,786 

 133 
 105 
 9,553 
 7,477 
 4,671 
 30 
 1,371 
 110 
 23,450 
 39,236 

 6,467 
 1,495 
 119 
 252 
 165 
 1,518 
 7,870 
 17,886 
 5,231 
 23,117 

 10,521 
 2,753 
 251 
 – 
 804 
 51 
 14,380 
 37,497 
 1,739 

 5,253 
(6,989)
 3,115 
 1,379 
 360 
 1,739 

 2,068 
 740 
 4,434 
 534 
 16 
 7,792 
 333 
 8,125 

 154 
 168 
 12,062 
 8,742 
 7,717 
 57 
 1,327 
 120 
 30,347 
 38,472 

 7,508 
 1,826 
 2,027 
 131 
 84 
 1,881 
 – 
 13,457 
 – 
 13,457 

 12,902 
 1,904 
 3 
 204 
 918 
 52 
 15,983 
 29,440 
 9,032 

 6,022 
 391 
 2,329 
 8,742 
 290 
 9,032 

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying Notes to the 
Consolidated Financial Statements.

81

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

Balance at 27 June 2021

 5,466 

(213)

(6,989)

 3,115 

 1,379 

 360 

 1,739 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT ENTITY

SHARE 

CAPITAL 

$M

SHARES 

HELD IN 

TRUST 

$M

 6,197 

(175)

RESERVES 

$M

RETAINED 

EARNINGS 

$M

 391 

 – 

 2,329 

 2,074 

TOTAL 

$M

 8,742 

 2,074 

NON‑ 

CONTROLLING 

INTERESTS 

(904)

(6,966)

 139 

(139)

 173 

(177)

 13 

 13 

 – 

 – 

 – 

 – 

(390)

 102 

(11)

 2 

 2,063 

(1,277)

 2,076 

(1,277)

(7,870)

 – 

 173 

(177)

(390)

 102 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

TOTAL 

EQUITY 

$M

 9,032 

 2,139 

 – 

 2,139 

(1,327)

(7,870)

 – 

 173 

(177)

(390)

 103 

$M

 290 

 65 

(2)

 63 

(50)

 – 

 – 

 – 

 – 

 – 

 1 

 – 

 56 

 56 

ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT ENTITY

SHARE 

CAPITAL 

$M

SHARES 

HELD IN 

TRUST 

$M

RESERVES 

$M

RETAINED 

EARNINGS 

$M

NON‑ 

CONTROLLING 

INTERESTS 

$M

TOTAL 

$M

TOTAL 

EQUITY 

$M

 6,033 

(205)

 490 

 3,783 

 10,101 

 383 

 10,484 

(1,329)

 2,454 

 1,165 

(1,329)

 8,772 

 1,165 

(69)

 314 

 44 

(1,398)

 9,086 

 1,209 

 4 

(56)

(2)

(58)

 1,169 

(1,297)

 1,109 

(1,297)

 42 

(66)

 1,151 

(1,363)

 – 

 3 

 – 

 – 

 – 

 164 

(102)

 96 

 – 

 – 

 – 

 – 

 – 

 164 

(102)

 96 

 – 

 – 

(60)

(60)

 – 

 – 

 – 

 96 

 391 

 135 

(135)

 164 

(3)

(102)

 – 

(175)

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

2021

Balance at 28 June 2020

Profit for the period

Other comprehensive income/(loss) 

for the period, net of tax

Total comprehensive income for the 

period, net of tax

Dividends paid

Demerger distribution

Issue/(transfer) of shares to satisfy 

employee long-term incentive plans

Issue of shares to satisfy the dividend 

reinvestment plan

Purchase of shares by the Woolworths 

Employee Share Trust

Recognition of non-controlling interest 

from acquisition of subsidiary

Recognition of put option over  

non-controlling interest

Share-based payments expense

2020

reported

Balance at 30 June 2019, as previously 

Adjustment on initial application 

of AASB 16, net of tax

Profit for the period

Other comprehensive income/(loss) 

for the period, net of tax

Total comprehensive income for the 

period, net of tax

Dividends paid

Issue/(transfer) of shares to satisfy 

employee long-term incentive plans

Issue of shares to satisfy the dividend 

reinvestment plan

Purchase of shares by the Woolworths 

Employee Share Trust

Share-based payments expense

Balance at 28 June 2020

Consolidated Financial Statements. 

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying Notes to the 

 6,197 

 2,329 

 8,742 

 290 

 9,032 

Adjusted balance at 1 July 2019

 6,033 

(205)

 490 

 
 
 
 
 
 
 
 
 
80

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

81

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2
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W
O
O
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O
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S
G
R
O
U
P

Current assets

Cash and cash equivalents

Trade and other receivables

Inventories

Other financial assets

Other current assets

Assets held for sale or distribution

Total current assets

Non‑current assets

Trade and other receivables

Other financial assets

Lease assets

Property, plant and equipment

Intangible assets

Investments in associates

Deferred tax assets

Other non-current assets

Total non‑current assets

Total assets

Current liabilities

Trade and other payables

Lease liabilities

Borrowings

Current tax payable

Other financial liabilities

Provisions

Other current liabilities

Total current liabilities

Non‑current liabilities

Lease liabilities

Borrowings

Other financial liabilities

Deferred tax liabilities

Provisions

Other non-current liabilities

Total non‑current liabilities

Total liabilities

Net assets

Equity

Contributed equity

Reserves

Retained earnings

Liabilities associated with assets held for distribution

NOTE

4.5.1

3.1

3.2

5.3.1

3.1

3.2

3.3.1

3.4

3.5

3.7.3

3.8

3.3.2

4.6.3

3.2

3.9

5.3.2

5.3.1

3.3.2

4.6.3

3.2

3.7.3

3.9

4.3

4.4

5.4.3

2021

$M

RESTATED1

2020

$M

 1,009 

 649 

 3,132 

 19 

 18 

 4,827 

 10,959 

 15,786 

 133 

 105 

 9,553 

 7,477 

 4,671 

 30 

 1,371 

 110 

 23,450 

 39,236 

 6,467 

 1,495 

 119 

 252 

 165 

 1,518 

 7,870 

 17,886 

 5,231 

 23,117 

 10,521 

 2,753 

 251 

 – 

 804 

 51 

 14,380 

 37,497 

 1,739 

 5,253 

(6,989)

 3,115 

 1,379 

 360 

 1,739 

 2,068 

 740 

 4,434 

 534 

 16 

 7,792 

 333 

 8,125 

 154 

 168 

 12,062 

 8,742 

 7,717 

 57 

 1,327 

 120 

 30,347 

 38,472 

 7,508 

 1,826 

 2,027 

 131 

 84 

 1,881 

 13,457 

 – 

 – 

 13,457 

 12,902 

 1,904 

 3 

 204 

 918 

 52 

 15,983 

 29,440 

 9,032 

 6,022 

 391 

 2,329 

 8,742 

 290 

 9,032 

2021
Balance at 28 June 2020
Profit for the period
Other comprehensive income/(loss) 
for the period, net of tax
Total comprehensive income for the 
period, net of tax
Dividends paid
Demerger distribution
Issue/(transfer) of shares to satisfy 
employee long-term incentive plans
Issue of shares to satisfy the dividend 
reinvestment plan
Purchase of shares by the Woolworths 
Employee Share Trust
Recognition of non-controlling interest 
from acquisition of subsidiary
Recognition of put option over  
non-controlling interest
Share-based payments expense
Balance at 27 June 2021

2020
Balance at 30 June 2019, as previously 
reported
Adjustment on initial application 
of AASB 16, net of tax
Adjusted balance at 1 July 2019
Profit for the period
Other comprehensive income/(loss) 
for the period, net of tax
Total comprehensive income for the 
period, net of tax
Dividends paid
Issue/(transfer) of shares to satisfy 
employee long-term incentive plans
Issue of shares to satisfy the dividend 
reinvestment plan
Purchase of shares by the Woolworths 
Employee Share Trust
Share-based payments expense
Balance at 28 June 2020

ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT ENTITY

SHARE 
CAPITAL 
$M

 6,197 
 – 

 – 

 – 
 – 
(904)

SHARES 
HELD IN 
TRUST 
$M

(175)
 – 

 – 

 – 
 – 
 – 

RESERVES 
$M

 391 
 – 

 13 

RETAINED 
EARNINGS 
$M

 2,329 
 2,074 

TOTAL 
$M

 8,742 
 2,074 

(11)

 2 

 13 
 – 
(6,966)

 2,063 
(1,277)
 – 

 2,076 
(1,277)
(7,870)

 – 

 139 

(139)

 – 

 173 

(177)

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 173 

 – 

 – 

 – 

 – 
 – 
 5,466 

(177)

 – 

 – 
 – 
(213)

NON‑ 
CONTROLLING 
INTERESTS 
$M

 290 
 65 

(2)

 63 
(50)
 – 

 – 

 – 

 – 

TOTAL 
EQUITY 
$M

 9,032 
 2,139 

 – 

 2,139 
(1,327)
(7,870)

 – 

 173 

(177)

 – 

 56 

 56 

W

(390)
 102 
(6,989)

 – 
 – 
 3,115 

(390)
 102 
 1,379 

 – 
 1 
 360 

(390)
 103 
 1,739 

ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT ENTITY

SHARE 
CAPITAL 
$M

SHARES 
HELD IN 
TRUST 
$M

RESERVES 
$M

RETAINED 
EARNINGS 
$M

NON‑ 
CONTROLLING 
INTERESTS 
$M

TOTAL 
$M

TOTAL 
EQUITY 
$M

 6,033 

(205)

 490 

 3,783 

 10,101 

 383 

 10,484 

 – 
 6,033 
 – 

 – 
(205)
 – 

 – 

 – 
 – 

 – 

 – 
 – 

 – 

 – 
 490 
 – 

(60)

(60)
 – 

(1,329)
 2,454 
 1,165 

(1,329)
 8,772 
 1,165 

(69)
 314 
 44 

(1,398)
 9,086 
 1,209 

 4 

(56)

(2)

(58)

 1,169 
(1,297)

 1,109 
(1,297)

 42 
(66)

 1,151 
(1,363)

 135 

(135)

 164 

(3)

 – 

 – 

 3 

 – 
 – 
 6,197 

(102)
 – 
(175)

 – 
 96 
 391 

 – 
 – 
 2,329 

 – 

 164 

(102)
 96 
 8,742 

 – 

 – 

 – 
 – 
 290 

 – 

 164 

(102)
 96 
 9,032 

1

I

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G
H
L
I
G
H
T
S

P
E
R
F
O
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M
A
N
C
E

2

R
E
V
I
E

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
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T

F
I
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A
N
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A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
A
T
O
N

I

Equity attributable to equity holders of the parent entity

Non-controlling interests

Total equity

1  Refer to Note 1.1 for further details.

Consolidated Financial Statements.

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying Notes to the 

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying Notes to the 
Consolidated Financial Statements. 

 
 
 
 
 
 
 
 
 
82

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

for the period ended 27 June 2021

Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Payments for the interest component of lease liabilities
Finance costs paid on borrowings
Income tax paid
Net cash provided by operating activities
Cash flows from investing activities
Proceeds and advances from the sale of property, plant and equipment
Payments for property, plant and equipment and intangible assets
Proceeds from the sale of subsidiaries and investments, net of cash disposed
Payments for the purchase of businesses, net of cash acquired
Payments for the purchase of investments 
Proceeds from/(net advances) to related parties
Dividends received
Net cash used in investing activities
Cash flows from financing activities
Repayment of the principal component of lease liabilities
Proceeds from borrowings
Repayment of borrowings
Dividends paid
Dividends paid to non-controlling interests
Payments for shares held in trust
Net cash used in financing activities
Net (decrease)/increase in cash and cash equivalents
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at start of period
Cash and cash equivalents at end of period

NOTE

2021
$M

2020
$M

1 BASIS OF PREPARATION

 72,688 
(66,526)
(687)
(113)
(738)
 4,624 

 389 
(2,389)
 19 
(209)
(35)
 12 
 13 
(2,200)

(1,158)
 971 
(1,525)
(1,104)
(50)
(177)
(3,043)
(619)
(3)
 2,068 
 1,446 

 68,898 
(62,831)
(701)
(155)
(650)
 4,561 

 261 
(2,149)
 34 
(81)
(10)
(4)
 4 
(1,945)

(1,066)
 1,554 
(799)
(1,133)
(66)
(102)
(1,612)
 1,004 
(2)
 1,066 
 2,068 

3.3.4

4.5.2

3.3.4
4.6.3
4.6.3
4.2

4.5.1

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying Notes to the 
Consolidated Financial Statements. 

83

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N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

1.1 

BASIS OF PREPARATION

This section describes the financial reporting framework within which the Consolidated Financial 

Statements are prepared and a statement of compliance with the Corporations Act 2001 and 

Australian Accounting Standards and Interpretations.

Woolworths Group Limited (the Company) is a for-profit company which is incorporated and domiciled in Australia. 

The Financial Report of the Company is for the 52-week period ended 27 June 2021 and comprises the Company and its 

subsidiaries (together referred to as the Group). The comparative period is for the 52-week period ended 28 June 2020. 

The Financial Report was authorised for issue by the directors on 26 August 2021.

The Consolidated Financial Statements are presented in Australian dollars and amounts have been rounded to the nearest 

million dollars unless otherwise stated, in accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) 

Instrument 2016/191. 

The Consolidated Financial Statements have been prepared on the historical cost basis except for financial assets at fair 

value through other comprehensive income, derivative assets and liabilities, and certain financial liabilities which have been 

measured at fair value, as explained in the accounting policies. 

The accounting policies have been applied consistently to all periods presented in the Consolidated Financial Statements, 

unless otherwise stated. 

Certain comparative amounts have been re-presented to conform with the current period’s presentation to better reflect the 

nature of the financial position and performance of the Group. In addition:

•  On 18 June 2021, the Group obtained shareholder approval for the separation of Endeavour Group, which resulted in two 

of the Group’s separate major business lines, Endeavour Drinks and Hotels, being classified as discontinued operations. 

In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations, the Group has:

 –

presented the profit or loss from Endeavour Group separately from its continuing operations in its Consolidated 

Statement of Profit or Loss and Consolidated Statement of Other Comprehensive Income in the current period and 

restated the prior period. Refer to Note 5.2 for further details;

 –

presented the assets and liabilities of Endeavour Group as held for distribution separately from other assets and 

liabilities in the Consolidated Statement of Financial Position as at 27 June 2021 with no re-presentation of amounts 

presented in the prior period. Refer to Note 5.3 for further details; and

 –

continued to present the Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows 

including both continuing operations and discontinued operations.

•  The Group has reclassified $266 million from non-current lease liabilities to current lease liabilities in the Consolidated 

Statement of Financial Position as at 28 June 2020, to reflect that these lease liabilities are expected to settle within 

12 months after the reporting period. This has not resulted in a change to the total liabilities or net assets of the Group 

at 28 June 2020.

The Consolidated Financial Statements of the Group are general purpose financial statements which have been prepared 

in accordance with the Corporations Act 2001, and Australian Accounting Standards and Interpretations.

Compliance with Australian Accounting Standards ensures that the Financial Report complies with International Financial 

Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Consequently, this Financial 

Report has been prepared in accordance with and complies with IFRS as issued by the IASB.

 
 
 
 
 
 
 
 
 
82

Consolidated Statement of Cash Flows

Cash flows from operating activities

Receipts from customers

Payments to suppliers and employees

Finance costs paid on borrowings

Income tax paid

Net cash provided by operating activities

Cash flows from investing activities

Proceeds and advances from the sale of property, plant and equipment

Payments for property, plant and equipment and intangible assets

Proceeds from the sale of subsidiaries and investments, net of cash disposed

Payments for the purchase of businesses, net of cash acquired

Payments for the purchase of investments 

Proceeds from/(net advances) to related parties

Dividends received

Net cash used in investing activities

Cash flows from financing activities

Repayment of the principal component of lease liabilities

Proceeds from borrowings

Repayment of borrowings

Dividends paid

Dividends paid to non-controlling interests

Payments for shares held in trust

Net cash used in financing activities

Net (decrease)/increase in cash and cash equivalents

Effects of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at start of period

Cash and cash equivalents at end of period

NOTE

2021

$M

2020

$M

 72,688 

(66,526)

 68,898 

(62,831)

4.5.2

 4,624 

(2,200)

(1,945)

(687)

(113)

(738)

 389 

(2,389)

 19 

(209)

(35)

 12 

 13 

(1,158)

 971 

(1,525)

(1,104)

(50)

(177)

(3,043)

(619)

(3)

 2,068 

 1,446 

(701)

(155)

(650)

 4,561 

 261 

(2,149)

 34 

(81)

(10)

(4)

 4 

(1,066)

 1,554 

(799)

(1,133)

(66)

(102)

(1,612)

 1,004 

(2)

 1,066 

 2,068 

3.3.4

4.6.3

4.6.3

4.2

4.5.1

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying Notes to the 

Consolidated Financial Statements. 

Notes to the Consolidated Financial Statements
for the period ended 27 June 2021

1 BASIS OF PREPARATION

83

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R
E
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O
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W
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H
S
G
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P

Payments for the interest component of lease liabilities

3.3.4

1.1 

BASIS OF PREPARATION

This section describes the financial reporting framework within which the Consolidated Financial 
Statements are prepared and a statement of compliance with the Corporations Act 2001 and 
Australian Accounting Standards and Interpretations.

Woolworths Group Limited (the Company) is a for-profit company which is incorporated and domiciled in Australia. 
The Financial Report of the Company is for the 52-week period ended 27 June 2021 and comprises the Company and its 
subsidiaries (together referred to as the Group). The comparative period is for the 52-week period ended 28 June 2020. 

The Financial Report was authorised for issue by the directors on 26 August 2021.

The Consolidated Financial Statements are presented in Australian dollars and amounts have been rounded to the nearest 
million dollars unless otherwise stated, in accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) 
Instrument 2016/191. 

The Consolidated Financial Statements have been prepared on the historical cost basis except for financial assets at fair 
value through other comprehensive income, derivative assets and liabilities, and certain financial liabilities which have been 
measured at fair value, as explained in the accounting policies. 

The accounting policies have been applied consistently to all periods presented in the Consolidated Financial Statements, 
unless otherwise stated. 

Certain comparative amounts have been re-presented to conform with the current period’s presentation to better reflect the 
nature of the financial position and performance of the Group. In addition:

•  On 18 June 2021, the Group obtained shareholder approval for the separation of Endeavour Group, which resulted in two 
of the Group’s separate major business lines, Endeavour Drinks and Hotels, being classified as discontinued operations. 
In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations, the Group has:

 –

 –

 –

presented the profit or loss from Endeavour Group separately from its continuing operations in its Consolidated 
Statement of Profit or Loss and Consolidated Statement of Other Comprehensive Income in the current period and 
restated the prior period. Refer to Note 5.2 for further details;

presented the assets and liabilities of Endeavour Group as held for distribution separately from other assets and 
liabilities in the Consolidated Statement of Financial Position as at 27 June 2021 with no re-presentation of amounts 
presented in the prior period. Refer to Note 5.3 for further details; and

continued to present the Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows 
including both continuing operations and discontinued operations.

•  The Group has reclassified $266 million from non-current lease liabilities to current lease liabilities in the Consolidated 
Statement of Financial Position as at 28 June 2020, to reflect that these lease liabilities are expected to settle within 
12 months after the reporting period. This has not resulted in a change to the total liabilities or net assets of the Group 
at 28 June 2020.

The Consolidated Financial Statements of the Group are general purpose financial statements which have been prepared 
in accordance with the Corporations Act 2001, and Australian Accounting Standards and Interpretations.

Compliance with Australian Accounting Standards ensures that the Financial Report complies with International Financial 
Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Consequently, this Financial 
Report has been prepared in accordance with and complies with IFRS as issued by the IASB.

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
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M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
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E
S
S

3

R
E
P
O
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T

I

D
R
E
C
T
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'

4

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E
P
O
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T

F
I
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A
N
C
A
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I

5

O
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H
E
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I

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F
O
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M
A
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O
N

I

 
 
 
 
 
 
 
 
 
84

Notes to the Consolidated Financial Statements

BASIS OF

PREPARATION 1

1.2 

SIGNIFICANT ACCOUNTING POLICIES

1.2 

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

This section sets out the significant accounting policies upon which the Group’s Consolidated Financial 
Statements are prepared as a whole and significant accounting policies not otherwise described in the 
Notes to the Consolidated Financial Statements. Where a significant accounting policy is specific to a note 
to the Consolidated Financial Statements, the policy is described within that note. This section also shows 
information on new accounting standards, amendments, and interpretations not yet adopted and the 
impact they will have on the Group’s Consolidated Financial Statements.

Basis of consolidation

1.2.1 
The Consolidated Financial Statements of the Company incorporate the assets, liabilities, and results of all subsidiaries 
as at and for the period ended 27 June 2021. Subsidiaries are all entities over which the Group has control. The Group controls 
an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect 
those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which 
control is transferred to the Group and are deconsolidated from the date that control ceases. 

Intragroup balances and transactions, and any unrealised gains and losses arising from intragroup transactions, are eliminated 
in preparing the Consolidated Financial Statements. 

Inventories

1.2.2 
Inventories are valued at the lower of cost and net realisable value.

Cost is determined on a weighted average basis after deducting supplier rebates and settlement discounts, and includes other 
costs incurred to bring inventory to its present condition and location for sale. 

Net realisable value of inventory has been determined as the estimated selling price in the ordinary course of business, 
less estimated selling expenses. 

as operating cash flows.

Investments in associates

1.2.3 
Associates are those entities in which the Group has significant influence but not control or joint control over the financial and 
operating policies. Investments in associates are initially recognised at cost, including transaction costs, and are accounted for 
using the equity method by including the Group’s share of profit or loss and other comprehensive income of associates in the 
carrying amount of the investment until the date on which significant influence ceases. Dividends received reduce the carrying 
amount of the investment in associates.

1.2.4 

Foreign currency

Functional and presentation currency

(i) 
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary 
economic environment in which the entity operates (the functional currency). The Consolidated Financial Statements are 
presented in Australian dollars (AUD), which is the Company’s functional currency.

Foreign currency transactions (entities with a functional currency of AUD)

(ii) 
Foreign currency transactions are translated into AUD using the exchange rates at the dates of the transactions. Assets and 
liabilities denominated in foreign currencies are translated to AUD at the reporting date at the following exchange rates:

FOREIGN CURRENCY AMOUNT

Monetary assets and liabilities
Non-monetary assets and liabilities measured at historical cost

APPLICABLE EXCHANGE RATE

Reporting date
Date of transaction

Foreign exchange differences arising on translation are recognised in the Consolidated Statement of Profit or Loss in the period 
in which they arise except:

•  Exchange differences on transactions entered to hedge certain foreign currency risks (refer to Note 4.7); and

• 

Items noted within paragraph (iii).

(iii) 

Foreign operations (entities with a functional currency other than AUD)

The profit or loss and financial position of foreign operations are translated to AUD at the following exchange rates: 

FOREIGN CURRENCY AMOUNT

Revenues and expenses

arising on consolidation

Equity items

Assets and liabilities, including goodwill and fair value adjustments 

APPLICABLE EXCHANGE RATE

Average for the period

Reporting date

Historical rates

The following foreign exchange differences are recognised in other comprehensive income:

•  Foreign currency differences arising on translation of foreign operations; and

•  Exchange differences arising from a monetary item receivable from or payable to a foreign operation, the settlement 

of which is neither planned nor likely in the foreseeable future. These monetary items and related hedges are considered 

to form part of the net investment in a foreign operation and are reclassified into the Consolidated Statement of Profit 

or Loss upon disposal of the net investment.

1.2.5 

Goods and Services Tax (GST)

Revenue, expenses, and assets are recognised net of GST, except where the GST incurred is not recoverable from the taxation 

authority, in which case the GST is recognised as part of the expense or cost of the asset.

Receivables and payables are stated with the amount of GST included. The net amounts of GST recoverable from or payable 

to the taxation authorities are included as a current asset or current liability in the Consolidated Statement of Financial Position.

Cash flows are included in the Consolidated Statement of Cash Flows on a gross basis. The GST components of cash flows 

arising from investing and financing activities which are recoverable from or payable to taxation authorities are classified 

1.2.6 

New and amended standards adopted by the Group

The Group has adopted all relevant new and amended Accounting Standards and Interpretations issued by the Australian 

Accounting Standards Board which are effective for annual reporting periods beginning on or after 29 June 2020. None 

of the new standards or amendments to standards that are mandatory for the first time materially affected any of the 

amounts recognised in the current period or any prior period.

1.2.7 

Issued standards and interpretations not early adopted

The table below lists the standards and amendments to standards on issue but not yet effective that were available for early 

adoption and were applicable to the Group. The reported profit or loss and financial position of the Group are not expected 

to change on adoption of any of the amendments to current standards listed below, unless stated otherwise, as they do not 

result in any changes to the Group’s existing accounting policies. 

EFFECTIVE DATE

ADOPTION DATE 

NEW STANDARDS, INTERPRETATIONS, AND AMENDMENTS 

REFERENCE

1 January 2021

28 June 2021

Amendments to Australian Accounting Standards – Interest Rate 

AASB 2020-8

1 April 2021

28 June 2021

Amendments to Australian Accounting Standards – COVID-19-Related 

AASB 2021-3

Benchmark Reform – Phase 2

Rent Concessions beyond 30 June 2021

1 January 2022

27 June 2022 1

Amendments to Australian Accounting Standards – Annual 

AASB 2020-3

Improvements 2018–2020 and Other Amendments

1 January 2023

26 June 2023  1

Amendments to Australian Accounting Standards – Classification 

AASB 2020-1

of Liabilities as Current or Non-current

1 January 2023

26 June 2023  1

Amendments to Australian Accounting Standards – Disclosure 

AASB 2021-2

of Accounting Policies and Definition of Accounting Estimates

1 January 2023

26 June 2023  1

Amendments to Australian Accounting Standards – Deferred Tax 

AASB 2021-5

related to Assets and Liabilities arising from a Single Transaction

1  This represents the date the amendment is mandatorily effective for the Group. The Group may elect to early adopt the amendment.

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84

Notes to the Consolidated Financial Statements

1.2 

SIGNIFICANT ACCOUNTING POLICIES

1.2 

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

BASIS OF

PREPARATION 1

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This section sets out the significant accounting policies upon which the Group’s Consolidated Financial 

Statements are prepared as a whole and significant accounting policies not otherwise described in the 

Notes to the Consolidated Financial Statements. Where a significant accounting policy is specific to a note 

to the Consolidated Financial Statements, the policy is described within that note. This section also shows 

information on new accounting standards, amendments, and interpretations not yet adopted and the 

impact they will have on the Group’s Consolidated Financial Statements.

1.2.1 

Basis of consolidation

The Consolidated Financial Statements of the Company incorporate the assets, liabilities, and results of all subsidiaries 

as at and for the period ended 27 June 2021. Subsidiaries are all entities over which the Group has control. The Group controls 

an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect 

those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which 

control is transferred to the Group and are deconsolidated from the date that control ceases. 

Intragroup balances and transactions, and any unrealised gains and losses arising from intragroup transactions, are eliminated 

in preparing the Consolidated Financial Statements. 

1.2.2 

Inventories

Inventories are valued at the lower of cost and net realisable value.

Cost is determined on a weighted average basis after deducting supplier rebates and settlement discounts, and includes other 

costs incurred to bring inventory to its present condition and location for sale. 

Net realisable value of inventory has been determined as the estimated selling price in the ordinary course of business, 

Associates are those entities in which the Group has significant influence but not control or joint control over the financial and 

operating policies. Investments in associates are initially recognised at cost, including transaction costs, and are accounted for 

using the equity method by including the Group’s share of profit or loss and other comprehensive income of associates in the 

carrying amount of the investment until the date on which significant influence ceases. Dividends received reduce the carrying 

less estimated selling expenses. 

1.2.3 

Investments in associates

amount of the investment in associates.

1.2.4 

Foreign currency

(i) 

Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary 

economic environment in which the entity operates (the functional currency). The Consolidated Financial Statements are 

presented in Australian dollars (AUD), which is the Company’s functional currency.

(ii) 

Foreign currency transactions (entities with a functional currency of AUD)

Foreign currency transactions are translated into AUD using the exchange rates at the dates of the transactions. Assets and 

liabilities denominated in foreign currencies are translated to AUD at the reporting date at the following exchange rates:

FOREIGN CURRENCY AMOUNT

Monetary assets and liabilities

Non-monetary assets and liabilities measured at historical cost

APPLICABLE EXCHANGE RATE

Reporting date

Date of transaction

Foreign exchange differences arising on translation are recognised in the Consolidated Statement of Profit or Loss in the period 

in which they arise except:

• 

Items noted within paragraph (iii).

•  Exchange differences on transactions entered to hedge certain foreign currency risks (refer to Note 4.7); and

(iii) 
The profit or loss and financial position of foreign operations are translated to AUD at the following exchange rates: 

Foreign operations (entities with a functional currency other than AUD)

FOREIGN CURRENCY AMOUNT

Revenues and expenses
Assets and liabilities, including goodwill and fair value adjustments 
arising on consolidation
Equity items

APPLICABLE EXCHANGE RATE

Average for the period

Reporting date
Historical rates

The following foreign exchange differences are recognised in other comprehensive income:

•  Foreign currency differences arising on translation of foreign operations; and

•  Exchange differences arising from a monetary item receivable from or payable to a foreign operation, the settlement 

of which is neither planned nor likely in the foreseeable future. These monetary items and related hedges are considered 
to form part of the net investment in a foreign operation and are reclassified into the Consolidated Statement of Profit 
or Loss upon disposal of the net investment.

Goods and Services Tax (GST)

1.2.5 
Revenue, expenses, and assets are recognised net of GST, except where the GST incurred is not recoverable from the taxation 
authority, in which case the GST is recognised as part of the expense or cost of the asset.

Receivables and payables are stated with the amount of GST included. The net amounts of GST recoverable from or payable 
to the taxation authorities are included as a current asset or current liability in the Consolidated Statement of Financial Position.

Cash flows are included in the Consolidated Statement of Cash Flows on a gross basis. The GST components of cash flows 
arising from investing and financing activities which are recoverable from or payable to taxation authorities are classified 
as operating cash flows.

New and amended standards adopted by the Group

1.2.6 
The Group has adopted all relevant new and amended Accounting Standards and Interpretations issued by the Australian 
Accounting Standards Board which are effective for annual reporting periods beginning on or after 29 June 2020. None 
of the new standards or amendments to standards that are mandatory for the first time materially affected any of the 
amounts recognised in the current period or any prior period.

Issued standards and interpretations not early adopted

1.2.7 
The table below lists the standards and amendments to standards on issue but not yet effective that were available for early 
adoption and were applicable to the Group. The reported profit or loss and financial position of the Group are not expected 
to change on adoption of any of the amendments to current standards listed below, unless stated otherwise, as they do not 
result in any changes to the Group’s existing accounting policies. 

EFFECTIVE DATE

ADOPTION DATE 

NEW STANDARDS, INTERPRETATIONS, AND AMENDMENTS 

REFERENCE

1 January 2021

28 June 2021

Amendments to Australian Accounting Standards – Interest Rate 
Benchmark Reform – Phase 2

AASB 2020-8

1 April 2021

28 June 2021

Amendments to Australian Accounting Standards – COVID-19-Related 
Rent Concessions beyond 30 June 2021

AASB 2021-3

1 January 2022

27 June 2022 1

Amendments to Australian Accounting Standards – Annual 
Improvements 2018–2020 and Other Amendments

1 January 2023

26 June 2023  1

Amendments to Australian Accounting Standards – Classification 
of Liabilities as Current or Non-current

1 January 2023

26 June 2023  1

Amendments to Australian Accounting Standards – Disclosure 
of Accounting Policies and Definition of Accounting Estimates

1 January 2023

26 June 2023  1

Amendments to Australian Accounting Standards – Deferred Tax 
related to Assets and Liabilities arising from a Single Transaction

AASB 2020-3

AASB 2020-1

AASB 2021-2

AASB 2021-5

1  This represents the date the amendment is mandatorily effective for the Group. The Group may elect to early adopt the amendment.

1

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86

Notes to the Consolidated Financial Statements

BASIS OF

PREPARATION 1

1.3 

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

1.4 

INDIVIDUALLY SIGNIFICANT ITEMS

This section describes the critical accounting estimates and judgements that have been applied 
and may have a material impact on the Group’s Consolidated Financial Statements. 

Individually significant items represent non‑recurring income received and expenses incurred that 

are not part of the core operations of the Group.

In applying the Group’s accounting policies, the directors are required to make estimates, judgements, and assumptions 
that affect amounts reported in this Financial Report. The estimates, judgements, and assumptions are based on historical 
experience, adjusted for current market conditions, and other factors that are believed to be reasonable under the 
circumstances, and are reviewed on a regular basis. Actual results may differ from these estimates.

The estimates and judgements which involve a higher degree of complexity or that have a significant risk of causing a material 
adjustment to the carrying amounts of assets and liabilities within the next period are included in the following notes:

•  Note 3.2 – Other financial assets and liabilities;

•  Note 3.3 – Leases;

•  Note 3.6 – Impairment of non-financial assets; and

•  Note 3.9 – Provisions.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that 
period; or in the period and future periods if the revision affects both current and future periods.

Gain on disposal of previously held equity interest in Quantium

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follows:

2021

Continuing operations

Australian Food

Supply chain network review

Metro asset impairment

Other

Transaction costs

Total Group significant items

Supply chain network review

Metro asset impairment

network’s performance. 

Significant items have been highlighted to help users of this Financial Report understand the financial performance of the 

Group during the reporting period.

The significant items included within branch and administration expenses in the Consolidated Statement of Profit or Loss are as 

PROFIT BEFORE 

INCOME TAX

INCOME TAX 

BENEFIT

$M

$M

PROFIT FOR 

THE PERIOD

$M

(44)

(50)

 221 

(68)

 59 

 13 

 15 

 – 

 15 

 43 

(31)

(35)

 221 

(53)

 102 

During the period, the Group announced the closure of the temperature-controlled operations at one site in New South Wales 

as part of the ongoing supply chain network review. An expense of $44 million was recognised in the period relating to the 

estimated redundancy costs for impacted team members. 

During the period, the Group recognised expenses totalling $50 million relating to non-cash asset impairments and other 

store exit costs for 13 Metro Food Stores. The charge is reflective of the negative impacts of COVID-19 on the Metro 

Gain on disposal of previously held equity interest in Quantium

During the period, the Group recognised a $221 million net gain on disposal of its previously held interest in Quantium. 

Following the Group’s acquisition of an additional equity interest in Quantium, the Group’s previously held equity interest 

of 47.2% was treated as if it were disposed of and reacquired at fair value. Accordingly, it was remeasured to its acquisition-date 

fair value and, when compared to its carrying amount, a gain of $228 million was recognised. 

In addition, the Group recognised a $7 million net charge for transaction and integration costs and other transaction related gains. 

Transaction costs

regulatory costs.  

During the period, the Group incurred $68 million in transaction costs related to the demerger of Endeavour Group 

($48 million) and costs associated with the acquisition of PFD ($20 million). The costs include advisor fees and legal and other 

 
 
 
 
 
 
 
 
 
86

Notes to the Consolidated Financial Statements

BASIS OF

PREPARATION 1

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1.3 

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

1.4 

INDIVIDUALLY SIGNIFICANT ITEMS

This section describes the critical accounting estimates and judgements that have been applied 

and may have a material impact on the Group’s Consolidated Financial Statements. 

Individually significant items represent non‑recurring income received and expenses incurred that 
are not part of the core operations of the Group.

In applying the Group’s accounting policies, the directors are required to make estimates, judgements, and assumptions 

that affect amounts reported in this Financial Report. The estimates, judgements, and assumptions are based on historical 

experience, adjusted for current market conditions, and other factors that are believed to be reasonable under the 

circumstances, and are reviewed on a regular basis. Actual results may differ from these estimates.

The estimates and judgements which involve a higher degree of complexity or that have a significant risk of causing a material 

adjustment to the carrying amounts of assets and liabilities within the next period are included in the following notes:

•  Note 3.2 – Other financial assets and liabilities;

•  Note 3.3 – Leases;

•  Note 3.6 – Impairment of non-financial assets; and

•  Note 3.9 – Provisions.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that 

period; or in the period and future periods if the revision affects both current and future periods.

Significant items have been highlighted to help users of this Financial Report understand the financial performance of the 
Group during the reporting period.

The significant items included within branch and administration expenses in the Consolidated Statement of Profit or Loss are as 
follows:

2021
Continuing operations
Australian Food
Supply chain network review
Metro asset impairment
Other
Gain on disposal of previously held equity interest in Quantium
Transaction costs
Total Group significant items

PROFIT BEFORE 
INCOME TAX
$M

INCOME TAX 
BENEFIT
$M

PROFIT FOR 
THE PERIOD
$M

(44)
(50)

 221 
(68)
 59 

 13 
 15 

 – 
 15 
 43 

(31)
(35)

 221 
(53)
 102 

Supply chain network review
During the period, the Group announced the closure of the temperature-controlled operations at one site in New South Wales 
as part of the ongoing supply chain network review. An expense of $44 million was recognised in the period relating to the 
estimated redundancy costs for impacted team members. 

Metro asset impairment
During the period, the Group recognised expenses totalling $50 million relating to non-cash asset impairments and other 
store exit costs for 13 Metro Food Stores. The charge is reflective of the negative impacts of COVID-19 on the Metro 
network’s performance. 

Gain on disposal of previously held equity interest in Quantium
During the period, the Group recognised a $221 million net gain on disposal of its previously held interest in Quantium. 

Following the Group’s acquisition of an additional equity interest in Quantium, the Group’s previously held equity interest 
of 47.2% was treated as if it were disposed of and reacquired at fair value. Accordingly, it was remeasured to its acquisition-date 
fair value and, when compared to its carrying amount, a gain of $228 million was recognised. 

In addition, the Group recognised a $7 million net charge for transaction and integration costs and other transaction related gains. 

Transaction costs
During the period, the Group incurred $68 million in transaction costs related to the demerger of Endeavour Group 
($48 million) and costs associated with the acquisition of PFD ($20 million). The costs include advisor fees and legal and other 
regulatory costs.  

1

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88

Notes to the Consolidated Financial Statements

1.5 

FINANCIAL REPORTING IMPACTS OF COVID‑19

2 GROUP PERFORMANCE

The COVID‑19 pandemic has had a material impact on the Group’s financial performance for the period. 
This section provides a summary of the key financial reporting impacts of COVID‑19.

2.1 

REVENUE FROM THE SALE OF GOODS AND SERVICES FROM CONTINUING OPERATIONS

The financial performance of the Group and its reportable segments has been materially impacted by the COVID-19 pandemic. 
The Group’s period ended 27 June 2021 (F21) trading performance was strong with sales growth of 5.7%, EBIT from continuing 
operations up 39.2% to $2,823 million, and profit after tax from continuing operations attributable to equity holders of the 
parent entity up 72.7% to $1,606 million. After very strong EBIT growth in the first half of F21 (H1 F21), EBIT growth for the 
second half of F21 (H2 F21) was impacted by the cycling of COVID-19 from late February in the prior period.

The financial performance of the Group’s reportable segments, including the impacts of COVID-19, is as follows:

•  Australian Food – sales increased by 5.4% for the period. H1 F21 sales growth of 10.6% benefitted from COVID-19-related 

demand. H2 F21 sales growth of 0.2% was impacted by cycling 10.4% sales growth in H2 of the period ended 28 June 2020 
(F20) from COVID-19-related pantry loading. COVID-19 costs of $205 million (excluding discretionary team discount 
and bonus payments) remained material but declined significantly on the prior period and, together with gross margin 
improvements, led to 13.7% EBIT growth for the period. In Woolworths Supermarkets, store-originated sales increased 
by 2.0% for F21 driven by a 7.2% increase in H1 F21. Sales slowed as expected in H2 F21 as customers shopped more 
frequently with smaller basket sizes. In WooliesX, eCommerce sales increased 74.7% compared to the prior period with 
sales penetration of 7.9%. Customer scores were broadly in line with the prior period with improvements in Ease of Pick up, 
Queue Wait Time and Fruit & Veg despite the ongoing disruption from COVID-19.

•  New Zealand Food – sales growth in H1 F21 was impacted by low market growth, particularly during the summer tourist 

season. In H2 F21, sales declined by 7.8% as the business cycled New Zealand’s restrictive COVID-19 lockdown period. EBIT 
declined 6.4% for the period reflecting the lower sales. eCommerce sales grew 27.7% despite cycling elevated sales from 
COVID-19 impacts in H2 F20.

•  BIG W – after sales growth of 20.1% in H1 F21, sales growth moderated in H2 F21 but remained positive at 2.3% despite 
the negative impact of lockdowns across Victoria and New South Wales in the half. Gross margin improved with H2 F21 
category mix changes due to cycling elevated sales of lower margin COVID-19-impacted categories, including Leisure and 
Toys and Home Essentials in F20. EBIT increased by 344.9% in the period to $172 million.

•  Endeavour Drinks – sales increased by 9.6% with EBIT increasing by 17.7%, reflecting a continuation of the in-home 
consumption and premiumisation trends. eCommerce sales increased 34.7% in F21 with sales penetration of 8.4%. 
Penetration has remained high even in periods when lockdowns and on-premise restrictions have eased.

•  Hotels – delivered materially higher earnings than the prior period with EBIT increasing 52% to $261 million. While some 
disruption to trading continued due to lockdowns, sales and EBIT growth in H2 F21 benefitted from cycling a period where 
venues were closed for most of the final four months of F20. The most significant impact of COVID-19 lockdowns and 
restrictions was in the key state of Victoria, where operations were somewhat impacted throughout the period. Hotels 
re-entered lockdown in early July 2020 and re-opened in early November with capacity limits and trading restrictions 
in place. There were further short-term snap lockdowns in both February and June.

FINANCIAL REPORTING IMPACTS OF COVID-19

In addition to the impact on financial performance, the Group has also considered the impact of the COVID-19 
pandemic across its businesses. Details about the impact of COVID-19 are included in the following notes:

•  Note 3.1 – Trade and other receivables; and

•  Note 3.6 – Impairment of non-financial assets.

PERFORMANCE 2

GROUP

2021

$M

RESTATED1 

2020

$M

 49,598 

 48,875 

 4,743 

 1,353 

 2,905 

 1,300 

 55,694 

 53,080 

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The Group’s revenue from continuing operations mainly comprises the sale of goods in‑store and online. 

Sale of goods in-store

Sale of goods online

Other2

1  Refer to Note 1.1 for further details.

2  Other includes revenue from wholesale distribution of food and related products, and commission received on financial services.

SIGNIFICANT ACCOUNTING POLICIES 

Revenue

The Group’s revenue from continuing operations mainly comprises the sale of goods in-store and online. Revenue 

is recognised when control of the goods has transferred to the customer or when the service is provided at an amount 

that reflects the consideration to which the Group expects to be entitled. 

For sale of goods in-store, control of the goods transfers to the customer at the point the customer purchases the 

goods in-store. For sale of goods online, control of the goods transfers to the customer at the point the goods are 

delivered to, or collected by, the customer. Where payment for the goods is received prior to control transferring 

to the customer, revenue recognition is deferred in contract liabilities within trade and other payables in the 

Consolidated Statement of Financial Position until the goods have been delivered to, or collected by, the customer. 

Loyalty program

Rewards points granted by the Group provide customers with a material right to a discount on future purchases. 

The amounts allocated to rewards points are deferred in contract liabilities within trade and other payables in the 

Consolidated Statement of Financial Position until redeemed by the customer.

 
 
 
 
 
 
 
 
 
88

Notes to the Consolidated Financial Statements

PERFORMANCE 2

GROUP

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1.5 

FINANCIAL REPORTING IMPACTS OF COVID‑19

2 GROUP PERFORMANCE

The COVID‑19 pandemic has had a material impact on the Group’s financial performance for the period. 

This section provides a summary of the key financial reporting impacts of COVID‑19.

2.1 

REVENUE FROM THE SALE OF GOODS AND SERVICES FROM CONTINUING OPERATIONS

The financial performance of the Group and its reportable segments has been materially impacted by the COVID-19 pandemic. 

The Group’s period ended 27 June 2021 (F21) trading performance was strong with sales growth of 5.7%, EBIT from continuing 

operations up 39.2% to $2,823 million, and profit after tax from continuing operations attributable to equity holders of the 

parent entity up 72.7% to $1,606 million. After very strong EBIT growth in the first half of F21 (H1 F21), EBIT growth for the 

second half of F21 (H2 F21) was impacted by the cycling of COVID-19 from late February in the prior period.

The financial performance of the Group’s reportable segments, including the impacts of COVID-19, is as follows:

•  Australian Food – sales increased by 5.4% for the period. H1 F21 sales growth of 10.6% benefitted from COVID-19-related 

demand. H2 F21 sales growth of 0.2% was impacted by cycling 10.4% sales growth in H2 of the period ended 28 June 2020 

(F20) from COVID-19-related pantry loading. COVID-19 costs of $205 million (excluding discretionary team discount 

and bonus payments) remained material but declined significantly on the prior period and, together with gross margin 

improvements, led to 13.7% EBIT growth for the period. In Woolworths Supermarkets, store-originated sales increased 

by 2.0% for F21 driven by a 7.2% increase in H1 F21. Sales slowed as expected in H2 F21 as customers shopped more 

frequently with smaller basket sizes. In WooliesX, eCommerce sales increased 74.7% compared to the prior period with 

sales penetration of 7.9%. Customer scores were broadly in line with the prior period with improvements in Ease of Pick up, 

Queue Wait Time and Fruit & Veg despite the ongoing disruption from COVID-19.

•  New Zealand Food – sales growth in H1 F21 was impacted by low market growth, particularly during the summer tourist 

season. In H2 F21, sales declined by 7.8% as the business cycled New Zealand’s restrictive COVID-19 lockdown period. EBIT 

declined 6.4% for the period reflecting the lower sales. eCommerce sales grew 27.7% despite cycling elevated sales from 

COVID-19 impacts in H2 F20.

•  BIG W – after sales growth of 20.1% in H1 F21, sales growth moderated in H2 F21 but remained positive at 2.3% despite 

the negative impact of lockdowns across Victoria and New South Wales in the half. Gross margin improved with H2 F21 

category mix changes due to cycling elevated sales of lower margin COVID-19-impacted categories, including Leisure and 

Toys and Home Essentials in F20. EBIT increased by 344.9% in the period to $172 million.

•  Endeavour Drinks – sales increased by 9.6% with EBIT increasing by 17.7%, reflecting a continuation of the in-home 

consumption and premiumisation trends. eCommerce sales increased 34.7% in F21 with sales penetration of 8.4%. 

Penetration has remained high even in periods when lockdowns and on-premise restrictions have eased.

•  Hotels – delivered materially higher earnings than the prior period with EBIT increasing 52% to $261 million. While some 

disruption to trading continued due to lockdowns, sales and EBIT growth in H2 F21 benefitted from cycling a period where 

venues were closed for most of the final four months of F20. The most significant impact of COVID-19 lockdowns and 

restrictions was in the key state of Victoria, where operations were somewhat impacted throughout the period. Hotels 

re-entered lockdown in early July 2020 and re-opened in early November with capacity limits and trading restrictions 

in place. There were further short-term snap lockdowns in both February and June.

FINANCIAL REPORTING IMPACTS OF COVID-19

In addition to the impact on financial performance, the Group has also considered the impact of the COVID-19 

pandemic across its businesses. Details about the impact of COVID-19 are included in the following notes:

•  Note 3.1 – Trade and other receivables; and

•  Note 3.6 – Impairment of non-financial assets.

The Group’s revenue from continuing operations mainly comprises the sale of goods in‑store and online. 

Sale of goods in-store
Sale of goods online
Other2

2021
$M

 49,598 
 4,743 
 1,353 
 55,694 

RESTATED1 
2020
$M

 48,875 
 2,905 
 1,300 
 53,080 

1  Refer to Note 1.1 for further details.
2  Other includes revenue from wholesale distribution of food and related products, and commission received on financial services.

W

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SIGNIFICANT ACCOUNTING POLICIES 

Revenue

The Group’s revenue from continuing operations mainly comprises the sale of goods in-store and online. Revenue 
is recognised when control of the goods has transferred to the customer or when the service is provided at an amount 
that reflects the consideration to which the Group expects to be entitled. 

For sale of goods in-store, control of the goods transfers to the customer at the point the customer purchases the 
goods in-store. For sale of goods online, control of the goods transfers to the customer at the point the goods are 
delivered to, or collected by, the customer. Where payment for the goods is received prior to control transferring 
to the customer, revenue recognition is deferred in contract liabilities within trade and other payables in the 
Consolidated Statement of Financial Position until the goods have been delivered to, or collected by, the customer. 

Loyalty program
Rewards points granted by the Group provide customers with a material right to a discount on future purchases. 
The amounts allocated to rewards points are deferred in contract liabilities within trade and other payables in the 
Consolidated Statement of Financial Position until redeemed by the customer.

3

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90

Notes to the Consolidated Financial Statements

2.2 

SEGMENT DISCLOSURES FROM CONTINUING OPERATIONS

2.2 

SEGMENT DISCLOSURES FROM CONTINUING OPERATIONS (CONTINUED)

The Group identifies different business units that are regularly reviewed by the Board in order to allocate 
resources and assess performance. These business units offer different products and services and are 
managed separately. The segment disclosures present the financial performance of each business unit 
and other material items.

Operating segment reporting from continuing operations

2.2.1 
Reportable segments from continuing operations are identified on the basis of internal reports on the business units of the 
Group that are regularly reviewed by the Board in order to allocate resources to the segment and assess its performance. These 
business units offer different products and services and are managed separately.

The Group’s reportable segments from continuing operations are as follows:

•  Australian Food – procurement of food and related products for resale and provision of services to customers in Australia;

•  New Zealand Food – procurement of food and drinks for resale and provision of services to customers in New Zealand;

•  BIG W – procurement of discount general merchandise products for resale to customers in Australia; and

•  Other – consists of the Group’s other operating segments that are not separately reportable as well as various support 

functions, including property and central overhead costs, and consolidation and elimination journals.

There are varying levels of integration between the Group’s reportable segments from continuing operations. This includes the 
common usage of property and services and administration functions. Intersegment pricing is determined on an arm’s length basis.

On 18 June 2021, the Group obtained shareholder approval for the separation of Endeavour Group, which resulted in two of the 
Group’s separate major business lines, Endeavour Drinks and Hotels, being classified as discontinued operations. Consequently, 
both reportable segments are no longer presented in the segment disclosures from continuing operations for the current and 
prior periods. Refer to Note 5.2 for further details.

The primary reporting measure of the reportable segments is earnings before interest, tax, and significant items which 
is consistent with the way management monitor and report the performance of these segments.

for Endeavour Group transformation costs and salaried team member remediation.

4  Capital expenditure is comprised of property, plant and equipment, and intangible asset acquisitions.

2021
Revenue from the sale of goods and services
Other revenue 1
Total revenue
Earnings/(loss) before interest, tax, 
and significant items
Significant items 2
Earnings/(loss) before interest and tax
Finance costs
Profit before income tax
Income tax expense
Profit for the period from continuing operations
Depreciation and amortisation – lease assets
Depreciation and amortisation – non‑lease assets
Capital expenditure 3

AUSTRALIAN 
FOOD 
$M

NEW ZEALAND 
FOOD 
$M

 44,441 
 – 
 44,441 

 2,432 
(94)
 2,338 

 6,652 
 – 
 6,652 

 336 
 – 
 336 

BIG W 
$M

 4,583 
 – 
 4,583 

 172 
 – 
 172 

OTHER 
$M

 18 
 117 
 135 

(176)
 153 
(23)

 692 
 882 
 1,209 

 117 
 136 
 322 

 106 
 70 
 102 

 30 
 46 
 541 

CONSOLIDATED 
CONTINUING 
OPERATIONS 
$M

 55,694 
 117 
 55,811 

 2,764 
 59 
 2,823 
(613)
 2,210 
(604)
 1,606 
 945 
 1,134 
 2,174 

1  Other revenue is comprised of operating lease rental income and revenue from non-operating activities across the Group and as such, is not allocated to the 

reportable segments.

2  Significant items net gain before tax of $59 million includes $94 million in Australian Food for the supply chain network review and the Metro asset 
impairment, which is offset by $153 million in Other for the gain on disposal of previously held equity interest in Quantium and transaction costs.

3  Capital expenditure is comprised of property, plant and equipment, and intangible asset acquisitions.

PERFORMANCE 2

GROUP

CONSOLIDATED 

CONTINUING 

OPERATIONS 1 

$M

OTHER 1 

$M

 – 

 148 

 148 

(144)

(283)

(427)

 25 

 58 

 620 

 53,080 

 148 

 53,228 

 2,485 

(459)

 2,026 

(671)

 1,355 

(417)

 938 

 889 

 1,079 

 1,913 

2.2.1 

Operating segment reporting (continued)

RESTATED1 2020

Revenue from the sale of goods and services

Other revenue 2

Total revenue

Earnings/(loss) before interest, tax, 

and significant items

Significant items 3

Earnings/(loss) before interest and tax

Finance costs

Profit before income tax

Income tax expense

AUSTRALIAN 

NEW ZEALAND 

FOOD 

$M

 42,151 

 – 

 42,151 

 2,232 

(176)

 2,056 

FOOD 

$M

 6,823 

 – 

 6,823 

 358 

 – 

 358 

BIG W 

$M

 4,106 

 – 

 4,106 

 39 

 – 

 39 

Profit for the period from continuing operations

Depreciation and amortisation – lease assets

Depreciation and amortisation – non‑lease assets

Capital expenditure 4

 647 

 828 

 1,017 

 114 

 128 

 212 

 103 

 65 

 64 

1  Re-presented following the classification of Endeavour Drinks and Hotels as discontinued operations during the current period. Refer to Note 1.1 

2  Other revenue is comprised of operating lease rental income and revenue from non-operating activities across the Group and as such is not allocated 

for further details.

to the reportable segments.

3  Significant items before tax of $459 million includes $176 million in Australian Food for the supply chain network strategy review and $283 million in Other 

2.2.2 

Geographical information

The table below provides information on the geographical location of revenue from continuing operations and non-current 

assets. Total revenue is allocated to a geography based on the location in which the sales originated. Non-current assets are 

allocated based on the location of the operation to which they relate.

AUSTRALIA

NEW ZEALAND

OPERATIONS

CONSOLIDATED CONTINUING 

2021

$M

RESTATED1 

2020

$M

 95 

 49,137 

 17,481 

 129 

 46,386 

 18,653 

2021

$M

 6,652 

 22 

 6,674 

 4,591 

RESTATED1 

2020

$M

2021

$M

RESTATED1 

2020

$M

 6,823 

 55,694 

 53,080 

 19 

 6,842 

 4,432 

 117 

 55,811 

 22,072 

 148 

 53,228 

 23,085 

Revenue from the sale of goods and services

 49,042 

 46,257 

Other revenue

Total revenue

Non-current assets2

1  Refer to Note 1.1 for further details.

2  Non-current assets excluding derivatives and deferred tax assets.

91

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2.2 

SEGMENT DISCLOSURES FROM CONTINUING OPERATIONS

2.2 

SEGMENT DISCLOSURES FROM CONTINUING OPERATIONS (CONTINUED)

PERFORMANCE 2

GROUP

91

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Notes to the Consolidated Financial Statements

The Group identifies different business units that are regularly reviewed by the Board in order to allocate 

resources and assess performance. These business units offer different products and services and are 

managed separately. The segment disclosures present the financial performance of each business unit 

and other material items.

2.2.1 

Operating segment reporting from continuing operations

Reportable segments from continuing operations are identified on the basis of internal reports on the business units of the 

Group that are regularly reviewed by the Board in order to allocate resources to the segment and assess its performance. These 

business units offer different products and services and are managed separately.

The Group’s reportable segments from continuing operations are as follows:

•  Australian Food – procurement of food and related products for resale and provision of services to customers in Australia;

•  New Zealand Food – procurement of food and drinks for resale and provision of services to customers in New Zealand;

•  BIG W – procurement of discount general merchandise products for resale to customers in Australia; and

•  Other – consists of the Group’s other operating segments that are not separately reportable as well as various support 

functions, including property and central overhead costs, and consolidation and elimination journals.

There are varying levels of integration between the Group’s reportable segments from continuing operations. This includes the 

common usage of property and services and administration functions. Intersegment pricing is determined on an arm’s length basis.

On 18 June 2021, the Group obtained shareholder approval for the separation of Endeavour Group, which resulted in two of the 

Group’s separate major business lines, Endeavour Drinks and Hotels, being classified as discontinued operations. Consequently, 

both reportable segments are no longer presented in the segment disclosures from continuing operations for the current and 

prior periods. Refer to Note 5.2 for further details.

Revenue from the sale of goods and services

 44,441 

 6,652 

 4,583 

2021

Other revenue 1

Total revenue

Earnings/(loss) before interest, tax, 

and significant items

Significant items 2

Earnings/(loss) before interest and tax

Finance costs

Profit before income tax

Income tax expense

Profit for the period from continuing operations

Depreciation and amortisation – lease assets

Depreciation and amortisation – non‑lease assets

Capital expenditure 3

AUSTRALIAN 

NEW ZEALAND 

FOOD 

$M

FOOD 

$M

BIG W 

$M

 – 

 – 

 – 

 44,441 

 6,652 

 4,583 

 2,432 

(94)

 2,338 

 692 

 882 

 1,209 

 336 

 – 

 336 

 117 

 136 

 322 

 172 

 – 

 172 

 106 

 70 

 102 

CONSOLIDATED 

CONTINUING 

OPERATIONS 

$M

 55,694 

 117 

 55,811 

 2,764 

 59 

 2,823 

(613)

 2,210 

(604)

 1,606 

 945 

 1,134 

 2,174 

OTHER 

$M

 18 

 117 

 135 

(176)

 153 

(23)

 30 

 46 

 541 

1  Other revenue is comprised of operating lease rental income and revenue from non-operating activities across the Group and as such, is not allocated to the 

reportable segments.

2  Significant items net gain before tax of $59 million includes $94 million in Australian Food for the supply chain network review and the Metro asset 

impairment, which is offset by $153 million in Other for the gain on disposal of previously held equity interest in Quantium and transaction costs.

3  Capital expenditure is comprised of property, plant and equipment, and intangible asset acquisitions.

2.2.1 

Operating segment reporting (continued)

RESTATED1 2020
Revenue from the sale of goods and services
Other revenue 2
Total revenue
Earnings/(loss) before interest, tax, 
and significant items
Significant items 3
Earnings/(loss) before interest and tax
Finance costs
Profit before income tax
Income tax expense
Profit for the period from continuing operations
Depreciation and amortisation – lease assets
Depreciation and amortisation – non‑lease assets
Capital expenditure 4

AUSTRALIAN 
FOOD 
$M

NEW ZEALAND 
FOOD 
$M

 42,151 
 – 
 42,151 

 2,232 
(176)
 2,056 

 6,823 
 – 
 6,823 

 358 
 – 
 358 

BIG W 
$M

 4,106 
 – 
 4,106 

 39 
 – 
 39 

 647 
 828 
 1,017 

 114 
 128 
 212 

 103 
 65 
 64 

CONSOLIDATED 
CONTINUING 
OPERATIONS 1 
$M

OTHER 1 
$M

 – 
 148 
 148 

(144)
(283)
(427)

 25 
 58 
 620 

 53,080 
 148 
 53,228 

 2,485 
(459)
 2,026 
(671)
 1,355 
(417)
 938 
 889 
 1,079 
 1,913 

1  Re-presented following the classification of Endeavour Drinks and Hotels as discontinued operations during the current period. Refer to Note 1.1 

for further details.

2  Other revenue is comprised of operating lease rental income and revenue from non-operating activities across the Group and as such is not allocated 

to the reportable segments.

3  Significant items before tax of $459 million includes $176 million in Australian Food for the supply chain network strategy review and $283 million in Other 

The primary reporting measure of the reportable segments is earnings before interest, tax, and significant items which 

is consistent with the way management monitor and report the performance of these segments.

for Endeavour Group transformation costs and salaried team member remediation.

4  Capital expenditure is comprised of property, plant and equipment, and intangible asset acquisitions.

Geographical information

2.2.2 
The table below provides information on the geographical location of revenue from continuing operations and non-current 
assets. Total revenue is allocated to a geography based on the location in which the sales originated. Non-current assets are 
allocated based on the location of the operation to which they relate.

Revenue from the sale of goods and services
Other revenue
Total revenue
Non-current assets2

AUSTRALIA

NEW ZEALAND

CONSOLIDATED CONTINUING 
OPERATIONS

2021
$M

 49,042 
 95 
 49,137 
 17,481 

RESTATED1 
2020
$M

 46,257 
 129 
 46,386 
 18,653 

2021
$M

 6,652 
 22 
 6,674 
 4,591 

RESTATED1 
2020
$M

 6,823 
 19 
 6,842 
 4,432 

2021
$M

 55,694 
 117 
 55,811 
 22,072 

RESTATED1 
2020
$M

 53,080 
 148 
 53,228 
 23,085 

1  Refer to Note 1.1 for further details.
2  Non-current assets excluding derivatives and deferred tax assets.

P
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92

Notes to the Consolidated Financial Statements

2.3 

FINANCE COSTS FROM CONTINUING OPERATIONS

3 ASSETS AND LIABILITIES

Finance costs includes interest on borrowings, derivatives, and lease liabilities.

3.1 

TRADE AND OTHER RECEIVABLES

Interest expense – leases
Interest expense – non-leases
Less: interest capitalised 2
Other

1  Refer to Note 1.1 for further details.
2  Weighted average capitalisation rate was 2.72% (2020: 3.68%).

2021
$M

 528 
 102 
(10)
(7)
 613 

RESTATED1 
2020
$M

 529 
 165 
(10)
(13)
 671 

SIGNIFICANT ACCOUNTING POLICIES 

Finance costs

Finance costs that are directly attributable to the acquisition, construction, or production of a qualifying asset 
(one that takes a substantial period of time to get ready for its intended use or sale) are capitalised during the 
period of time that is required to complete and prepare the asset for its intended use or sale.

All other finance costs are recognised in the Consolidated Statement of Profit or Loss in the period in which 
they are incurred. Leases finance costs comprise interest on lease liabilities calculated using the incremental 
borrowing rate. Non-leases finance costs comprise interest on borrowings calculated using the effective interest 
method and interest on derivatives.

Current

Trade receivables

Loss allowance

Other receivables 1

Loss allowance

Prepayments

Non‑current

Prepayments

Other receivables

Total current trade and other receivables

Total non‑current trade and other receivables

Total trade and other receivables

1 

Includes supplier rebates of $52 million (2020: $84 million).

Trade and other receivables consists of amounts owed to the Group by customers for sales of goods 

and services in the ordinary course of business and amounts paid to suppliers in advance.

ASSETS AND

LIABILITIES 3

2021

$M

 137 

(6)

 131 

 358 

(9)

 349 

 169 

 649 

 – 

 133 

 133 

 782 

2020

$M

 138 

(10)

 128 

 429 

(9)

 420 

 192 

 740 

 40 

 114 

 154 

 894 

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FINANCIAL REPORTING IMPACTS OF COVID-19

The Group assesses the expected credit losses associated with its trade and other receivables on a forward-looking 

basis. COVID-19 has not had a material impact on the loss allowances recognised at the end of the period.

SIGNIFICANT ACCOUNTING POLICIES 

Trade and other receivables

Trade and other receivables are recognised initially at fair value and are subsequently measured at amortised 

cost using the effective interest method, less a loss allowance. They generally have terms of up to 30 days.

Impairment of trade and other receivables

The Group assesses the expected credit losses associated with its trade and other receivables on 

a forward-looking basis. The Group applies the simplified approach to measuring expected credit losses, 

which requires expected lifetime losses to be recognised from initial recognition of the receivables. To measure 

the expected credit losses, trade and other receivables that share similar credit risk characteristics and days 

past due are grouped and then assessed for collectability as a whole.

 
 
 
 
 
 
 
 
 
92

Notes to the Consolidated Financial Statements

2.3 

FINANCE COSTS FROM CONTINUING OPERATIONS

3 ASSETS AND LIABILITIES

Finance costs includes interest on borrowings, derivatives, and lease liabilities.

3.1 

TRADE AND OTHER RECEIVABLES

ASSETS AND

LIABILITIES 3

93

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Interest expense – leases

Interest expense – non-leases

Less: interest capitalised 2

Other

1  Refer to Note 1.1 for further details.

2  Weighted average capitalisation rate was 2.72% (2020: 3.68%).

2021

$M

 528 

 102 

(10)

(7)

 613 

RESTATED1 

2020

$M

 529 

 165 

(10)

(13)

 671 

SIGNIFICANT ACCOUNTING POLICIES 

Finance costs

Finance costs that are directly attributable to the acquisition, construction, or production of a qualifying asset 

(one that takes a substantial period of time to get ready for its intended use or sale) are capitalised during the 

period of time that is required to complete and prepare the asset for its intended use or sale.

All other finance costs are recognised in the Consolidated Statement of Profit or Loss in the period in which 

they are incurred. Leases finance costs comprise interest on lease liabilities calculated using the incremental 

borrowing rate. Non-leases finance costs comprise interest on borrowings calculated using the effective interest 

method and interest on derivatives.

Trade and other receivables consists of amounts owed to the Group by customers for sales of goods 
and services in the ordinary course of business and amounts paid to suppliers in advance.

Current
Trade receivables
Loss allowance

Other receivables 1
Loss allowance

Prepayments
Total current trade and other receivables
Non‑current
Prepayments
Other receivables
Total non‑current trade and other receivables
Total trade and other receivables

1 

Includes supplier rebates of $52 million (2020: $84 million).

2021
$M

 137 
(6)
 131 
 358 
(9)
 349 
 169 
 649 

 – 
 133 
 133 
 782 

2020
$M

 138 
(10)
 128 
 429 
(9)
 420 
 192 
 740 

 40 
 114 
 154 
 894 

FINANCIAL REPORTING IMPACTS OF COVID-19

The Group assesses the expected credit losses associated with its trade and other receivables on a forward-looking 
basis. COVID-19 has not had a material impact on the loss allowances recognised at the end of the period.

1

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F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

I

O
T
H
E
R

N
F
O
R
M
A
T
O
N

I

SIGNIFICANT ACCOUNTING POLICIES 

Trade and other receivables

Trade and other receivables are recognised initially at fair value and are subsequently measured at amortised 
cost using the effective interest method, less a loss allowance. They generally have terms of up to 30 days.

Impairment of trade and other receivables

The Group assesses the expected credit losses associated with its trade and other receivables on 
a forward-looking basis. The Group applies the simplified approach to measuring expected credit losses, 
which requires expected lifetime losses to be recognised from initial recognition of the receivables. To measure 
the expected credit losses, trade and other receivables that share similar credit risk characteristics and days 
past due are grouped and then assessed for collectability as a whole.

 
 
 
 
 
 
 
 
 
94

Notes to the Consolidated Financial Statements

ASSETS AND

LIABILITIES 3

3.2 

OTHER FINANCIAL ASSETS AND LIABILITIES

3.2 

OTHER FINANCIAL ASSETS AND LIABILITIES (CONTINUED)

Other financial assets and liabilities consists of derivatives, the Group’s holdings in listed and unlisted 
investments, loans provided to related parties, convertible and Simple Agreement for Future Equity 
(SAFE) notes, and a put option over non‑controlling interest.

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2021
$M

2020
$M

Loans provided to related parties

Other financial assets
Current
Derivatives 
Total current other financial assets
Non‑current
Derivatives 
Listed equity securities
Unlisted equity securities
Loans provided to related parties
Convertible and SAFE notes
Total non‑current other financial assets
Total other financial assets
Other financial liabilities
Current
Derivatives
Put option over non-controlling interest
Total current other financial liabilities
Non‑current
Derivatives
Put option over non-controlling interest
Total non‑current other financial liabilities
Total other financial liabilities

 19 
 19 

 7 
 – 
 33 
 3 
 62 
 105 
 124 

 20 
 145 
 165 

 6 
 245 
 251 
 416 

 534 
 534 

 14 
 84 
 10 
 15 
 45 
 168 
 702 

 81 
 3 
 84 

 3 
 – 
 3 
 87 

SIGNIFICANT ACCOUNTING POLICIES 

Derivatives

Refer to Note 4.7 for details of derivatives.

Listed and unlisted equity securities

The Group’s investments in listed and unlisted equity securities are initially designated as financial assets at fair 
value through profit or loss or as financial assets at fair value through other comprehensive income, where 
investments are not held for trading. Investments are initially measured at fair value net of transaction costs 
and, in subsequent periods, are measured at fair value with any change recognised in profit or loss or other 
comprehensive income, depending on their initial designation. Dividends received from listed and unlisted 
equity securities are recognised in profit or loss.

95

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

Loans provided to related parties are recognised initially at fair value plus transaction costs and, in subsequent 

periods, are stated at amortised cost. The Group assesses the expected credit losses associated with loans provided 

to related parties on a forward-looking basis. The Group applies the simplified approach to measuring expected 

credit losses, which requires expected lifetime losses to be recognised from initial recognition of the loan. 

Convertible and Simple Agreement for Future Equity (SAFE) notes

A SAFE note is a convertible note with no maturity date, no interest rate, an automatic conversion on any priced 

share issue, and a valuation cap (the maximum value to which the SAFE will convert).

The Group’s convertible and SAFE notes are financial assets measured at fair value through profit or loss. 

The convertible and SAFE notes are recognised initially at fair value plus transaction costs and, in subsequent 

periods, are measured at fair value with any change recognised in profit or loss.

Put option over non‑controlling interest

The Group’s put option over non-controlling interest is initially recognised at the present value of the amount 

expected to be paid at the time of exercise with a corresponding entry to other reserves (refer to Note 4.4 for 

further details). At each reporting period, the discount is unwound in finance costs in the Consolidated Statement 

of Profit or Loss. Any changes in the estimate of the amount expected to be paid at the time of exercise are 

recognised in the Consolidated Statement of Profit or Loss.

CRITICAL ACCOUNTING ESTIMATES

Fair value of put option over non‑controlling interest

The fair value of the put option liability over the non-controlling interest of Quantium has been determined as the 

present value of the amount expected to be paid at the time of exercise. 

Amount expected to be paid at the time of exercise

In determining the amount expected to be paid at the time of exercise, the Group considers the key terms of the 

shareholders agreement and the business outlook. The fair value of the put option liability is determined using 

a revenue multiple, which is applied to the forecast of Quantium’s last 12 months of revenue at the time of option 

exercise. The revenue multiple to be used is based on an agreed multiple adjusted for changes in revenue growth 

and EBITDA margin growth over a three-year period. Reasonably possible changes to these inputs would result 

in a change in the valuation. Refer to the sensitivity analysis in Note 4.7.4 for further details.

Discount rate

The amount expected to be paid at the time of exercise has been discounted using the Group’s marginal 

cost of debt for borrowing over a similar term.

 
 
 
 
 
 
 
 
 
3.2 

OTHER FINANCIAL ASSETS AND LIABILITIES

3.2 

OTHER FINANCIAL ASSETS AND LIABILITIES (CONTINUED)

ASSETS AND

LIABILITIES 3

95

A
N
N
U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Loans provided to related parties

Loans provided to related parties are recognised initially at fair value plus transaction costs and, in subsequent 
periods, are stated at amortised cost. The Group assesses the expected credit losses associated with loans provided 
to related parties on a forward-looking basis. The Group applies the simplified approach to measuring expected 
credit losses, which requires expected lifetime losses to be recognised from initial recognition of the loan. 

Convertible and Simple Agreement for Future Equity (SAFE) notes

A SAFE note is a convertible note with no maturity date, no interest rate, an automatic conversion on any priced 
share issue, and a valuation cap (the maximum value to which the SAFE will convert).

The Group’s convertible and SAFE notes are financial assets measured at fair value through profit or loss. 
The convertible and SAFE notes are recognised initially at fair value plus transaction costs and, in subsequent 
periods, are measured at fair value with any change recognised in profit or loss.

Put option over non‑controlling interest

The Group’s put option over non-controlling interest is initially recognised at the present value of the amount 
expected to be paid at the time of exercise with a corresponding entry to other reserves (refer to Note 4.4 for 
further details). At each reporting period, the discount is unwound in finance costs in the Consolidated Statement 
of Profit or Loss. Any changes in the estimate of the amount expected to be paid at the time of exercise are 
recognised in the Consolidated Statement of Profit or Loss.

CRITICAL ACCOUNTING ESTIMATES

Fair value of put option over non‑controlling interest

The fair value of the put option liability over the non-controlling interest of Quantium has been determined as the 
present value of the amount expected to be paid at the time of exercise. 

Amount expected to be paid at the time of exercise
In determining the amount expected to be paid at the time of exercise, the Group considers the key terms of the 
shareholders agreement and the business outlook. The fair value of the put option liability is determined using 
a revenue multiple, which is applied to the forecast of Quantium’s last 12 months of revenue at the time of option 
exercise. The revenue multiple to be used is based on an agreed multiple adjusted for changes in revenue growth 
and EBITDA margin growth over a three-year period. Reasonably possible changes to these inputs would result 
in a change in the valuation. Refer to the sensitivity analysis in Note 4.7.4 for further details.

Discount rate
The amount expected to be paid at the time of exercise has been discounted using the Group’s marginal 
cost of debt for borrowing over a similar term.

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
A
T
O
N

I

94

Notes to the Consolidated Financial Statements

Other financial assets and liabilities consists of derivatives, the Group’s holdings in listed and unlisted 

investments, loans provided to related parties, convertible and Simple Agreement for Future Equity 

(SAFE) notes, and a put option over non‑controlling interest.

Other financial assets

Current

Derivatives 

Non‑current

Derivatives 

Total current other financial assets

Listed equity securities

Unlisted equity securities

Loans provided to related parties

Convertible and SAFE notes

Total non‑current other financial assets

Total other financial assets

Other financial liabilities

Current

Derivatives

Non‑current

Derivatives

Put option over non-controlling interest

Total current other financial liabilities

Put option over non-controlling interest

Total non‑current other financial liabilities

Total other financial liabilities

2021

$M

2020

$M

 19 

 19 

 7 

 – 

 33 

 3 

 62 

 105 

 124 

 20 

 145 

 165 

 6 

 245 

 251 

 416 

 534 

 534 

 14 

 84 

 10 

 15 

 45 

 168 

 702 

 81 

 3 

 84 

 3 

 – 

 3 

 87 

SIGNIFICANT ACCOUNTING POLICIES 

Derivatives

Refer to Note 4.7 for details of derivatives.

Listed and unlisted equity securities

The Group’s investments in listed and unlisted equity securities are initially designated as financial assets at fair 

value through profit or loss or as financial assets at fair value through other comprehensive income, where 

investments are not held for trading. Investments are initially measured at fair value net of transaction costs 

and, in subsequent periods, are measured at fair value with any change recognised in profit or loss or other 

comprehensive income, depending on their initial designation. Dividends received from listed and unlisted 

equity securities are recognised in profit or loss.

 
 
 
 
 
 
 
 
 
96

Notes to the Consolidated Financial Statements

3.3 

LEASES

The Group leases various properties (stores, support offices, distribution centres, and warehouses), 
equipment, and vehicles. Property rental contracts are typically made for fixed periods of five to 
12 years with up to 10 options of two to five years. Other lease contracts are typically made for fixed 
periods of two to 10 years. Lease terms are negotiated on an individual basis and contain a wide range 
of different terms and conditions. 

3.3.1 

Lease assets

2021
Cost
Less: Accumulated depreciation and impairment
Carrying amount at end of period
Movement:
Carrying amount at start of period
Additions
Acquisition of businesses
Terminations
Remeasurements
Transfer of Endeavour Group’s assets to held for distribution
Depreciation expense
Impairment expense
Other
Carrying amount at end of period

2020
Cost
Less: Accumulated depreciation and impairment
Carrying amount at end of period
Movement:
Recognition on initial application of AASB 16
Additions
Terminations
Remeasurements
Depreciation expense
Impairment expense
Derecognition arising from sub-lease
Other
Carrying amount at end of period

PROPERTIES 
$M

PLANT AND  
EQUIPMENT 
$M

 17,821 
(8,415)
 9,406 

 11,912 
 460 
 109 
(29)
 1,253 
(3,104)
(1,163)
(30)
(2)
 9,406 

PROPERTIES 
$M

 20,414 
(8,502)
 11,912 

 12,113 
 776 
(62)
 328 
(1,111)
(34)
(90)
(8)
 11,912 

 223 
(87)
 136 

 133 
 71 
 1 
(3)
 – 
(10)
(57)
 – 
 1 
 136 

PLANT AND  
EQUIPMENT 
$M

 179 
(46)
 133 

 112 
 68 
(2)
(1)
(39)
 – 
 – 
(5)
 133 

OTHER 
$M

 108 
(97)
 11 

 17 
 6 
 – 
 – 
 – 
(3)
(8)
 – 
(1)
 11 

OTHER 
$M

 114 
(97)
 17 

 14 
 11 
 – 
 – 
(8)
 – 
 – 
 – 
 17 

TOTAL 
$M

 18,152 
(8,599)
 9,553 

 12,062 
 537 
 110 
(32)
 1,253 
(3,117)
(1,228)
(30)
(2)
 9,553 

TOTAL 
$M

 20,707 
(8,645)
 12,062 

 12,239 
 855 
(64)
 327 
(1,158)
(34)
(90)
(13)
 12,062 

3.3 

LEASES (CONTINUED)

3.3.2 

Lease liabilities

Movement:

Carrying amount at start of period

Recognition on initial application of AASB 16

Additions

Acquisition of businesses

Terminations

Remeasurements

Transfer of Endeavour Group’s liabilities to held for distribution

Interest expense from continuing operations

Interest expense from discontinued operations

Payments for the interest component of lease liabilities

Repayment of the principal component of lease liabilities

Carrying amount at end of period

Other

Current

Non-current

Carrying amount at end of period

MATURITY PROFILE OF CONTRACTUAL UNDISCOUNTED CASH FLOWS

One year or less

One year to two years

Two years to five years

Five years to 10 years

Over 10 years

Total undiscounted lease liabilities

Commitments for leases not yet commenced

At 27 June 2021, the Group had committed to leases which had not yet commenced. Accordingly, these lease contracts are not 

included in the calculation of the Group’s lease liabilities. The Group has estimated that the potential future lease payments 

for these lease contracts as at the end of the financial period would result in an increase in undiscounted lease liabilities 

of $983 million (2020: $929 million).

3.3.3 

Other amounts recognised in the Consolidated Statement of Profit or Loss from continuing operations

Interest expense on lease liabilities (included in finance costs)

Variable lease payments not included in the measurement of lease liabilities 1  

(included in branch expenses)

Expense relating to short-term leases (included in branch expenses)

1  Variable lease payments represent 3% of total lease payments (2020: less than 2% of total lease payments).

3.3.4 

Amounts recognised in the Consolidated Statement of Cash Flows

Payments for short-term leases, service components of leases, and variable payments 

(included in payments to suppliers and employees)

Payments for the interest component of lease liabilities

Repayment of the principal component lease liabilities

Total cash outflow for leases

97

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

ASSETS AND

LIABILITIES 3

2021

$M

2020

$M

 14,728 

 – 

 556 

 110 

(40)

 1,242 

(3,429)

 528 

 159 

(687)

(1,158)

7 

 12,016 

 1,495 

 10,521 

 12,016 

2021

$M

 1,563 

 1,462 

 2,851 

 6,035 

 3,856 

 15,767 

2021 

$M

 528 

 75 

19

2021

$M

 601 

 687 

 1,158 

 2,446 

 – 

 14,711 

 831 

 11 

(77)

 327 

 – 

 529 

 172 

(701)

(1,066)

(9)

 14,728 

 1,826 

 12,902 

 14,728 

2020

$M

 1,867 

 1,829 

 3,830 

 7,301 

 6,101 

 20,928 

2020 

$M

 529 

 48 

 41 

2020

$M

 558 

 701 

 1,066 

 2,325 

 
 
 
 
 
 
 
 
 
96

Notes to the Consolidated Financial Statements

3.3 

LEASES

The Group leases various properties (stores, support offices, distribution centres, and warehouses), 

equipment, and vehicles. Property rental contracts are typically made for fixed periods of five to 

12 years with up to 10 options of two to five years. Other lease contracts are typically made for fixed 

periods of two to 10 years. Lease terms are negotiated on an individual basis and contain a wide range 

of different terms and conditions. 

Transfer of Endeavour Group’s assets to held for distribution

Less: Accumulated depreciation and impairment

Carrying amount at end of period

3.3.1 

Lease assets

2021

Cost

Movement:

Additions

Carrying amount at start of period

Acquisition of businesses

Terminations

Remeasurements

Depreciation expense

Impairment expense

Other

Carrying amount at end of period

Less: Accumulated depreciation and impairment

Carrying amount at end of period

Recognition on initial application of AASB 16

2020

Cost

Movement:

Additions

Terminations

Remeasurements

Depreciation expense

Impairment expense

Derecognition arising from sub-lease

Other

Carrying amount at end of period

PROPERTIES 

$M

PLANT AND  

EQUIPMENT 

$M

 17,821 

(8,415)

 9,406 

 11,912 

 460 

 109 

(29)

 1,253 

(3,104)

(1,163)

(30)

(2)

 9,406 

PROPERTIES 

$M

 20,414 

(8,502)

 11,912 

 12,113 

 776 

(62)

 328 

(1,111)

(34)

(90)

(8)

 11,912 

 223 

(87)

 136 

 133 

 71 

 1 

(3)

 – 

(10)

(57)

 – 

 1 

 136 

$M

 179 

(46)

 133 

 112 

 68 

(2)

(1)

(39)

 – 

 – 

(5)

 133 

PLANT AND  

EQUIPMENT 

OTHER 

$M

 108 

(97)

 11 

 17 

 6 

 – 

 – 

 – 

(3)

(8)

 – 

(1)

 11 

 14 

 11 

 – 

 – 

(8)

 – 

 – 

 – 

 17 

OTHER 

$M

 114 

(97)

 17 

TOTAL 

$M

 18,152 

(8,599)

 9,553 

 12,062 

 537 

 110 

(32)

 1,253 

(3,117)

(1,228)

(30)

(2)

 9,553 

TOTAL 

$M

 20,707 

(8,645)

 12,062 

 12,239 

 855 

(64)

 327 

(1,158)

(34)

(90)

(13)

 12,062 

ASSETS AND

LIABILITIES 3

97

A
N
N
U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

3.3 

LEASES (CONTINUED)

3.3.2 

Lease liabilities

Movement:
Carrying amount at start of period
Recognition on initial application of AASB 16
Additions
Acquisition of businesses
Terminations
Remeasurements
Transfer of Endeavour Group’s liabilities to held for distribution
Interest expense from continuing operations
Interest expense from discontinued operations
Payments for the interest component of lease liabilities
Repayment of the principal component of lease liabilities
Other
Carrying amount at end of period
Current
Non-current
Carrying amount at end of period

MATURITY PROFILE OF CONTRACTUAL UNDISCOUNTED CASH FLOWS

One year or less
One year to two years
Two years to five years
Five years to 10 years
Over 10 years
Total undiscounted lease liabilities

2021
$M

2020
$M

 14,728 
 – 
 556 
 110 
(40)
 1,242 
(3,429)
 528 
 159 
(687)
(1,158)
7 
 12,016 
 1,495 
 10,521 
 12,016 

2021
$M

 1,563 
 1,462 
 2,851 
 6,035 
 3,856 
 15,767 

 – 
 14,711 
 831 
 11 
(77)
 327 
 – 
 529 
 172 
(701)
(1,066)
(9)
 14,728 
 1,826 
 12,902 
 14,728 

2020
$M

 1,867 
 1,829 
 3,830 
 7,301 
 6,101 
 20,928 

Commitments for leases not yet commenced
At 27 June 2021, the Group had committed to leases which had not yet commenced. Accordingly, these lease contracts are not 
included in the calculation of the Group’s lease liabilities. The Group has estimated that the potential future lease payments 
for these lease contracts as at the end of the financial period would result in an increase in undiscounted lease liabilities 
of $983 million (2020: $929 million).

3.3.3 

Other amounts recognised in the Consolidated Statement of Profit or Loss from continuing operations

Interest expense on lease liabilities (included in finance costs)
Variable lease payments not included in the measurement of lease liabilities 1  
(included in branch expenses)
Expense relating to short-term leases (included in branch expenses)

1  Variable lease payments represent 3% of total lease payments (2020: less than 2% of total lease payments).

3.3.4 

Amounts recognised in the Consolidated Statement of Cash Flows

Payments for short-term leases, service components of leases, and variable payments 
(included in payments to suppliers and employees)
Payments for the interest component of lease liabilities
Repayment of the principal component lease liabilities
Total cash outflow for leases

2021 
$M

 528 

 75 
19

2021
$M

 601 
 687 
 1,158 
 2,446 

2020 
$M

 529 

 48 
 41 

2020
$M

 558 
 701 
 1,066 
 2,325 

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
A
T
O
N

I

 
 
 
 
 
 
 
 
 
98

Notes to the Consolidated Financial Statements

3.3 

LEASES (CONTINUED)

3.3 

LEASES (CONTINUED)

SIGNIFICANT ACCOUNTING POLICIES

The Group assesses whether a contract is, or contains, a lease at inception of the contract. A lease conveys 
the right to direct the use and obtain substantially all of the economic benefits from an identified asset for 
a period of time in exchange for consideration. A lease liability and corresponding lease asset are recognised 
at commencement of the lease.

Lease liabilities
Lease liabilities are measured at the present value of lease payments, discounted using the interest rate implicit 
in the lease or, if that rate cannot be determined, at the Group’s incremental borrowing rate specific to the lease 
term. Lease payments (excluding non-lease components) include:
•  Fixed payments (including in-substance fixed payments), less any lease incentives receivable;
•  Variable lease payments that are based on an index or a rate;
•  Amounts expected to be payable by the Group under residual value guarantees;
•  Exercise price of a purchase option that the Group is reasonably certain to exercise; and
•  Payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.

Lease liabilities are subsequently measured at amortised cost using the effective interest rate method. 
When there is a change in lease term or a change in future lease payments, lease liabilities are remeasured, 
with a corresponding adjustment to lease assets.

Lease assets

Lease assets are initially measured at cost comprising the initial lease liability, any lease payments made at or before 
the commencement date (less any lease incentives received), any initial direct costs, and any restoration costs. 
Lease assets are subsequently depreciated on a straight-line basis over the shorter of the lease term or the useful 
life of the underlying asset. Lease assets are tested for impairment in accordance with the policy adopted for 
non-financial assets in Note 3.6.

Short‑term leases

Short-term leases are those with a lease term of 12 months or less. The costs associated with these leases are 
recognised as an expense in the Consolidated Statement of Profit or Loss as incurred.

Holdover leases

In assessing whether the Group is reasonably certain to extend or renew a lease in holdover, the Group considers 
all relevant facts and circumstances that create an economic incentive for the Group to remain in the leased 
premises and whether a lease asset and lease liability should be recognised.

Non‑lease components

The Group separates the non-lease components for property leases based on a residual method using property 
outgoing market data and separates the non-lease components for other leases based on the individual contract 
breakdown of these costs or otherwise best estimate of these costs. Non-lease components of lease payments 
are recognised as an expense in the Consolidated Statement of Profit or Loss as incurred and include items such 
as embedded property outgoings and repairs and maintenance.

ASSETS AND

LIABILITIES 3

2021

YEARS

10.5

9.3

8.7

8.7

14.6

6.6

10.4

2020 

YEARS

10.9

9.8

8.8

8.5

15.0

7.7

10.7

CRITICAL ACCOUNTING ESTIMATES

Determining the lease term

In determining the lease term, the Group considers all facts and circumstances that create an economic incentive 

to exercise an extension option, or not exercise a termination option. The assessment is reviewed if a significant event 

or a significant change in circumstances occurs which affects this assessment. Extension options are most common for 

property leases. At the end of the reporting period, the weighted average lease expiries for the portfolio of leases were:

WEIGHTED AVERAGE LEASE EXPIRY 1

Australian Food

New Zealand Food

Endeavour Drinks

BIG W

Hotels

Other

Group !

2

1  Represents the weighted average number of years from the end of the reporting period to the end of the reasonably certain lease term.

2  The Group’s weighted average lease expiry includes leases relating to Endeavour Group, which are included in liabilities associated with 

assets held for distribution at 27 June 2021. The Group’s weighted average lease expiry at 27 June 2021, excluding the impact from the 

portfolio of leases relating to Endeavour Group, was 10.1 years.

During the current financial period, revising lease terms for exercising extension options resulted in an increase 

in recognised lease liabilities and lease assets of $946 million (2020: $223 million).

Discount rates

(2020: 4.8%).

In calculating the lease liability, the lease payments are discounted using the rate implicit in the lease or the Group’s 

incremental borrowing rate. Determining the incremental borrowing rate requires significant judgement. The discount 

rate is derived from key external market based rates, the Group’s credit margin, and the length of the lease. 

At the end of the reporting period, the weighted average incremental borrowing rate for the Group was 4.4%3 

3  The Group’s weighted average incremental borrowing rate includes leases relating to Endeavour Group, which are included in liabilities 

associated with assets held for distribution at 27 June 2021. The Group’s weighted average incremental borrowing rate at 27 June 2021, 

excluding the impact from the portfolio of leases relating to Endeavour Group, was 4.4%.

99

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

 
 
 
 
 
 
 
 
 
98

Notes to the Consolidated Financial Statements

3.3 

LEASES (CONTINUED)

3.3 

LEASES (CONTINUED)

SIGNIFICANT ACCOUNTING POLICIES

CRITICAL ACCOUNTING ESTIMATES

ASSETS AND

LIABILITIES 3

99

A
N
N
U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

The Group assesses whether a contract is, or contains, a lease at inception of the contract. A lease conveys 

the right to direct the use and obtain substantially all of the economic benefits from an identified asset for 

a period of time in exchange for consideration. A lease liability and corresponding lease asset are recognised 

at commencement of the lease.

Lease liabilities

Lease liabilities are measured at the present value of lease payments, discounted using the interest rate implicit 

in the lease or, if that rate cannot be determined, at the Group’s incremental borrowing rate specific to the lease 

term. Lease payments (excluding non-lease components) include:

•  Fixed payments (including in-substance fixed payments), less any lease incentives receivable;

•  Variable lease payments that are based on an index or a rate;

•  Amounts expected to be payable by the Group under residual value guarantees;

•  Exercise price of a purchase option that the Group is reasonably certain to exercise; and

•  Payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.

Lease liabilities are subsequently measured at amortised cost using the effective interest rate method. 

When there is a change in lease term or a change in future lease payments, lease liabilities are remeasured, 

with a corresponding adjustment to lease assets.

Lease assets

Lease assets are initially measured at cost comprising the initial lease liability, any lease payments made at or before 

the commencement date (less any lease incentives received), any initial direct costs, and any restoration costs. 

Lease assets are subsequently depreciated on a straight-line basis over the shorter of the lease term or the useful 

life of the underlying asset. Lease assets are tested for impairment in accordance with the policy adopted for 

non-financial assets in Note 3.6.

Short‑term leases

Holdover leases

Non‑lease components

Short-term leases are those with a lease term of 12 months or less. The costs associated with these leases are 

recognised as an expense in the Consolidated Statement of Profit or Loss as incurred.

In assessing whether the Group is reasonably certain to extend or renew a lease in holdover, the Group considers 

all relevant facts and circumstances that create an economic incentive for the Group to remain in the leased 

premises and whether a lease asset and lease liability should be recognised.

The Group separates the non-lease components for property leases based on a residual method using property 

outgoing market data and separates the non-lease components for other leases based on the individual contract 

breakdown of these costs or otherwise best estimate of these costs. Non-lease components of lease payments 

are recognised as an expense in the Consolidated Statement of Profit or Loss as incurred and include items such 

as embedded property outgoings and repairs and maintenance.

Determining the lease term
In determining the lease term, the Group considers all facts and circumstances that create an economic incentive 
to exercise an extension option, or not exercise a termination option. The assessment is reviewed if a significant event 
or a significant change in circumstances occurs which affects this assessment. Extension options are most common for 
property leases. At the end of the reporting period, the weighted average lease expiries for the portfolio of leases were:

WEIGHTED AVERAGE LEASE EXPIRY 1

Australian Food
New Zealand Food
BIG W
Endeavour Drinks
Hotels
Other
Group !

2

2021
YEARS

10.5
9.3
8.7
8.7
14.6
6.6
10.4

2020 
YEARS

10.9
9.8
8.8
8.5
15.0
7.7
10.7

1  Represents the weighted average number of years from the end of the reporting period to the end of the reasonably certain lease term.
2  The Group’s weighted average lease expiry includes leases relating to Endeavour Group, which are included in liabilities associated with 
assets held for distribution at 27 June 2021. The Group’s weighted average lease expiry at 27 June 2021, excluding the impact from the 
portfolio of leases relating to Endeavour Group, was 10.1 years.

During the current financial period, revising lease terms for exercising extension options resulted in an increase 
in recognised lease liabilities and lease assets of $946 million (2020: $223 million).

Discount rates

In calculating the lease liability, the lease payments are discounted using the rate implicit in the lease or the Group’s 
incremental borrowing rate. Determining the incremental borrowing rate requires significant judgement. The discount 
rate is derived from key external market based rates, the Group’s credit margin, and the length of the lease. 

At the end of the reporting period, the weighted average incremental borrowing rate for the Group was 4.4%3 
(2020: 4.8%).

3  The Group’s weighted average incremental borrowing rate includes leases relating to Endeavour Group, which are included in liabilities 
associated with assets held for distribution at 27 June 2021. The Group’s weighted average incremental borrowing rate at 27 June 2021, 
excluding the impact from the portfolio of leases relating to Endeavour Group, was 4.4%.

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
A
T
O
N

I

 
 
 
 
 
 
 
 
 
100

Notes to the Consolidated Financial Statements

ASSETS AND

LIABILITIES 3

3.4 

PROPERTY, PLANT AND EQUIPMENT

3.4 

PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Property, plant and equipment represents the investment by the Group in tangible assets such 
as freehold land, warehouses, retail and other properties, store fit‑outs, distribution infrastructure, 
and technology.

2021
Cost
Less: accumulated depreciation and 
impairment
Carrying amount at end of period
Movement:
Carrying amount at start of period

Additions
Acquisition of businesses
Disposals2
Transfer to assets held for sale
Transfer of Endeavour Group’s assets to held 
for distribution
Depreciation expense
Impairment expense
Transfers and other
Effect of movements in foreign 
exchange rates
Carrying amount at end of period

DEVELOPMENT 
PROPERTIES 
$M

FREEHOLD LAND, 
WAREHOUSE, 
RETAIL, AND OTHER 
PROPERTIES 
$M

LEASEHOLD 
IMPROVEMENTS 
$M

PLANT AND  
EQUIPMENT 
$M

TOTAL 1 
$M

 1,096 

 1,027 

 3,443 

 9,247 

 14,813 

(71)
 1,025 

(163)
 864 

(1,786)
 1,657 

(5,316)
 3,931 

 978 

 259 
 – 
(12)
(2)

 – 
 – 
 – 
(198)

 – 
 1,025 

 1,271 

 1,964 

 4,529 

 148 
 22 
(3)
(116)

(613)
(26)
(9)
 191 

(1)
 864 

 331 
 – 
(8)
 – 

(566)
(210)
 – 
 146 

 – 
 1,657 

 1,122 
 10 
(53)
 – 

(708)
(809)
(16)
(143)

(1)
 3,931 

(7,336)
 7,477 

 8,742 

 1,860 
 32 
(76)
(118)

(1,887)
(1,045)
(25)
(4)

(2)
 7,477 

2020
Cost
Less: accumulated depreciation and 
impairment
Carrying amount at end of period
Movement:
Carrying amount at start of period
Additions
Acquisition of businesses
Disposals2
Transfer to assets held for sale
Depreciation expense
Transfers and other
Effect of movements in foreign 
exchange rates
Carrying amount at end of period

DEVELOPMENT 
PROPERTIES 
$M

FREEHOLD LAND, 
WAREHOUSE, 
RETAIL, AND OTHER 
PROPERTIES 
$M

LEASEHOLD 
IMPROVEMENTS 
$M

PLANT AND  
EQUIPMENT 
$M

TOTAL1 
$M

 1,055 

 1,527 

 3,769 

 10,645 

 16,996 

(77)
 978 

 675 
 464 
 – 
(9)
(16)
 – 
(134)

(2)
 978 

(256)
 1,271 

 1,343 
 34 
 33 
(3)
(244)
(26)
 139 

(5)
 1,271 

(1,805)
 1,964 

 1,711 
 275 
 – 
(12)
(1)
(218)
 212 

(3)
 1,964 

(6,116)
 4,529 

 4,523 
 1,097 
 6 
(32)
(71)
(748)
(236)

(10)
 4,529 

(8,254)
 8,742 

 8,252 
 1,870 
 39 
(56)
(332)
(992)
(19)

(20)
 8,742 

1  Carrying amount at the end of the period includes assets under construction of $638 million (2020: $715 million).
2  Net loss on disposal and write-off of property, plant and equipment, including those classified as held for sale, during the period from continuing operations 

was $11 million (2020: $11 million).

SIGNIFICANT ACCOUNTING POLICIES 

The Group’s property, plant and equipment are measured at cost less accumulated depreciation and impairment 

losses. The cost of self-constructed assets includes the cost of materials, direct labour, and a proportion 

of overheads. The cost of development properties (those being constructed or developed for future use) 

includes borrowing, holding, and development costs until the asset is complete. 

Carrying value

Depreciation

Assets are depreciated on a straight-line basis over their estimated useful lives to their residual values. Leasehold 

improvements are amortised over the expected useful life of the improvement. Useful lives are reassessed each 

reporting period. Where parts of an item of property, plant and equipment have different useful lives, they are 

accounted for as separate assets.

The expected useful lives are as follows:

Buildings

Plant and equipment

25–40 years

2.5–20 years

Leasehold improvements

Up to 25 years (retail properties) or 40 years (hotels)

The gross proceeds from asset sales are recognised at the date that an unconditional contract of sale is exchanged 

with the purchaser or when title passes. The net gain or loss is recognised in the Consolidated Statement of Profit 

Proceeds from sale of assets

or Loss.

Impairment

assets disclosed in Note 3.6. 

Property, plant and equipment are tested for impairment in accordance with the policy for impairment of non-financial 

101

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

 
 
 
 
 
 
 
 
 
100

Notes to the Consolidated Financial Statements

3.4 

PROPERTY, PLANT AND EQUIPMENT

3.4 

PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

ASSETS AND

LIABILITIES 3

101

A
N
N
U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

SIGNIFICANT ACCOUNTING POLICIES 

Carrying value

The Group’s property, plant and equipment are measured at cost less accumulated depreciation and impairment 
losses. The cost of self-constructed assets includes the cost of materials, direct labour, and a proportion 
of overheads. The cost of development properties (those being constructed or developed for future use) 
includes borrowing, holding, and development costs until the asset is complete. 

Depreciation

Assets are depreciated on a straight-line basis over their estimated useful lives to their residual values. Leasehold 
improvements are amortised over the expected useful life of the improvement. Useful lives are reassessed each 
reporting period. Where parts of an item of property, plant and equipment have different useful lives, they are 
accounted for as separate assets.

The expected useful lives are as follows:

Buildings

Plant and equipment

25–40 years

2.5–20 years

Leasehold improvements

Up to 25 years (retail properties) or 40 years (hotels)

Proceeds from sale of assets

The gross proceeds from asset sales are recognised at the date that an unconditional contract of sale is exchanged 
with the purchaser or when title passes. The net gain or loss is recognised in the Consolidated Statement of Profit 
or Loss.

Impairment

Property, plant and equipment are tested for impairment in accordance with the policy for impairment of non-financial 
assets disclosed in Note 3.6. 

Property, plant and equipment represents the investment by the Group in tangible assets such 

as freehold land, warehouses, retail and other properties, store fit‑outs, distribution infrastructure, 

and technology.

FREEHOLD LAND, 

WAREHOUSE, 

DEVELOPMENT 

RETAIL, AND OTHER 

LEASEHOLD 

PROPERTIES 

PROPERTIES 

IMPROVEMENTS 

PLANT AND  

EQUIPMENT 

$M

TOTAL 1 

$M

 9,247 

 14,813 

2021

Cost

impairment

Movement:

Additions

Disposals2

Less: accumulated depreciation and 

Carrying amount at end of period

Carrying amount at start of period

Acquisition of businesses

Transfer to assets held for sale

Transfer of Endeavour Group’s assets to held 

for distribution

Depreciation expense

Impairment expense

Transfers and other

Effect of movements in foreign 

exchange rates

Carrying amount at end of period

 1,025 

2020

Cost

impairment

Movement:

Additions

Disposals2

Less: accumulated depreciation and 

Carrying amount at end of period

Carrying amount at start of period

Acquisition of businesses

Transfer to assets held for sale

Depreciation expense

Transfers and other

Effect of movements in foreign 

exchange rates

Carrying amount at end of period

$M

 1,096 

(71)

 1,025 

 978 

 259 

 – 

(12)

(2)

 – 

 – 

 – 

 – 

(198)

$M

 1,055 

(77)

 978 

 675 

 464 

 – 

(9)

(16)

 – 

(134)

(2)

 978 

$M

 1,027 

(163)

 864 

 1,271 

 148 

 22 

(3)

(116)

(613)

(26)

(9)

 191 

(1)

 864 

$M

 1,527 

(256)

 1,271 

 1,343 

 34 

 33 

(3)

(244)

(26)

 139 

(5)

 1,271 

$M

 3,443 

(1,786)

 1,657 

 1,964 

 331 

 – 

(8)

 – 

(566)

(210)

 – 

 146 

 – 

 1,657 

(1,805)

 1,964 

 1,711 

 275 

 – 

(12)

(1)

(218)

 212 

(3)

 1,964 

(5,316)

 3,931 

 4,529 

 1,122 

 10 

(53)

 – 

(708)

(809)

(16)

(143)

(1)

 3,931 

(6,116)

 4,529 

 4,523 

 1,097 

 6 

(32)

(71)

(748)

(236)

(10)

 4,529 

(7,336)

 7,477 

 8,742 

 1,860 

 32 

(76)

(118)

(1,887)

(1,045)

(25)

(4)

(2)

 7,477 

(8,254)

 8,742 

 8,252 

 1,870 

 39 

(56)

(332)

(992)

(19)

(20)

 8,742 

FREEHOLD LAND, 

WAREHOUSE, 

DEVELOPMENT 

RETAIL, AND OTHER 

LEASEHOLD 

PROPERTIES 

PROPERTIES 

IMPROVEMENTS 

PLANT AND  

EQUIPMENT 

$M

$M

TOTAL1 

$M

 3,769 

 10,645 

 16,996 

1  Carrying amount at the end of the period includes assets under construction of $638 million (2020: $715 million).

2  Net loss on disposal and write-off of property, plant and equipment, including those classified as held for sale, during the period from continuing operations 

was $11 million (2020: $11 million).

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
A
T
O
N

I

 
 
 
 
 
 
 
 
 
102

Notes to the Consolidated Financial Statements

3.5 

INTANGIBLE ASSETS

3.5 

INTANGIBLE ASSETS (CONTINUED)

Intangible assets represents goodwill, brand names, licences, software, and other. Goodwill arises 
when the Group acquires a business at a cost which exceeds the fair value of net assets acquired 
and represents the synergies expected to arise from the purchase. Brand names have mainly been 
recognised as a result of New Zealand supermarket acquisitions and help to identify and differentiate 
the Group’s network from others. Licences allow the Group to conduct certain business activities, 
including the resale of drinks and provision of leisure and hospitality services. Software includes 
programs and operating systems used by the Group. Other includes customer relationships and 
contracts and intellectual property and algorithms. 

3.5.1 

Carrying amounts of, and movements in, intangible assets

2021
Cost
Less: accumulated amortisation and 
impairment
Carrying amount at end of period
Movement:
Carrying amount at start of period
Acquisition of businesses2
Other acquisitions
Disposals, transfers, and other
Transfer of Endeavour Group’s assets 
to held for distribution
Amortisation expense
Impairment expense
Effect of movements in foreign 
exchange rates
Carrying amount at end of period

2020

Cost
Less: accumulated amortisation and 
impairment
Carrying amount at end of period
Movement:
Carrying amount at start of period
Acquisition of businesses

Additions
Disposals, transfers, and other
Amortisation expense
Effect of movements in foreign 
exchange rates
Carrying amount at end of period

GOODWILL 
$M

 2,993 

(112)
 2,881 

 4,196 
 389 
 – 
 – 

(1,696)
 – 
(1)

(7)
 2,881 

GOODWILL 
$M

 4,323 

(127)
 4,196 

 4,217 
 30 

 – 
(4)
 – 

(47)
 4,196 

BRAND 
NAMES 
$M

 265 

–
 265 

 259 
 19 
 – 
 – 

(12)
 – 
 – 

(1)
 265 

BRAND 
NAMES 
$M

 260 

(1)
 259 

 254 
 – 

 8 
 – 
 – 

(3)
 259 

LIQUOR AND 
GAMING 
LICENCES 
$M

 – 

–
 – 

 1,979 
 2 
 6 
(1)

(1,969)
(17)
 – 

 – 
 – 

SOFTWARE 1 
$M

 2,552 

OTHER 
$M

 189 

(1,194)
 1,358 

 1,219 
 15 
 551 
 3 

(104)
(318)
(8)

 – 
 1,358 

(22)
 167 

 64 
 157 
 10 
 – 

(64)
 – 
 – 

 – 
 167 

LIQUOR AND 
GAMING 
LICENCES 
$M

SOFTWARE 1 
$M

OTHER 
$M

 2,170 

 2,201 

(191)
 1,979 

 1,990 
 12 

 8 
(15)
(16)

 – 
 1,979 

(982)
 1,219 

 1,267 
 – 

 262 
(19)
(291)

 – 
 1,219 

 119 

(55)
 64 

 65 
 – 

 – 
 – 
(1)

 – 
 64 

TOTAL 
$M

 5,999 

(1,328)
 4,671 

 7,717 
 582 
 567 
 2 

(3,845)
(335)
(9)

(8)
 4,671 

TOTAL 
$M

 9,073 

(1,356)
 7,717 

 7,793 
 42 

 278 
(38)
(308)

(50)
 7,717 

1  Carrying amount at the end of the period includes assets under development of $471 million (2020: $335 million).
2  Acquisition of businesses relates to the acquisition of Quantium (refer to Note 5.1 for further details) and the acquisition of stores and venues.

ASSETS AND

LIABILITIES 3

GOODWILL 

$M

 381 

 2,112 

 388 

 2,881 

BRAND 

NAMES 

$M

 3 

 243 

 19 

 265 

OTHER 

$M

 – 

 – 

 – 

 64 

 64 

GOODWILL 

$M

 381 

 2,119 

 962 

 734 

 4,196 

BRAND 

NAMES 

$M

 3 

 244 

 12 

 – 

 259 

LIQUOR AND 

GAMING 

LICENCES 

$M

 – 

 – 

 1,016 

 927 

 1,943 

3.5.2 

Allocation of indefinite life intangible assets to groups of cash‑generating units

1 

Included in the Other reportable segment.

2021

Australian Food

New Zealand Food

Quantium 1

2020

Australian Food

New Zealand Food

Endeavour Drinks

Hotels

SIGNIFICANT ACCOUNTING POLICIES 

Goodwill

Other intangible assets

Goodwill represents the excess of the cost of an acquisition over the fair value of the share of the net identifiable 

assets acquired. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.

Other intangible assets are measured at cost less accumulated amortisation and impairment losses. Where 

acquired in a business combination, cost represents the fair value at the date of acquisition.

Intangible assets with finite lives are amortised on a straight-line basis over their estimated useful lives. Useful 

lives are reassessed each reporting period. The useful lives of intangible assets have been assessed as follows:

Brand names

Liquor and gaming licences

Victorian gaming entitlements

Software

Customer relationships and contracts

Property development rights

Intellectual property and algorithms

Impairment

disclosed in Note 3.6.

Life of the gaming entitlement (10 years)

Three to five years (five to 10 years for core systems)

Indefinite useful life

Indefinite useful life

Three to 10 years

Indefinite useful life

Nine years

Intangible assets are tested for impairment in accordance with the policy for impairment of non-financial assets 

103

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

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T

F

I

N

A

N

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I

A

L

5

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R

I

N

F

O

R

M

A

T

I

O

N

 
 
 
 
 
 
 
 
 
3.5 

INTANGIBLE ASSETS

3.5 

INTANGIBLE ASSETS (CONTINUED)

3.5.2 

Allocation of indefinite life intangible assets to groups of cash‑generating units

ASSETS AND

LIABILITIES 3

103

A
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U
A
L

R
E
P
O
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2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

2021

Australian Food
New Zealand Food
Quantium 1

1 

Included in the Other reportable segment.

2020
Australian Food
New Zealand Food
Endeavour Drinks
Hotels

GOODWILL 
$M

 381 
 2,112 
 388 
 2,881 

GOODWILL 
$M

 381 
 2,119 
 962 
 734 
 4,196 

BRAND 
NAMES 
$M

 3 
 244 
 12 
 – 
 259 

LIQUOR AND 
GAMING 
LICENCES 
$M

 – 
 – 
 1,016 
 927 
 1,943 

BRAND 
NAMES 
$M

 3 
 243 
 19 
 265 

OTHER 
$M

 – 
 – 
 – 
 64 
 64 

SIGNIFICANT ACCOUNTING POLICIES 

Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the share of the net identifiable 
assets acquired. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.

Other intangible assets

Other intangible assets are measured at cost less accumulated amortisation and impairment losses. Where 
acquired in a business combination, cost represents the fair value at the date of acquisition.

Intangible assets with finite lives are amortised on a straight-line basis over their estimated useful lives. Useful 
lives are reassessed each reporting period. The useful lives of intangible assets have been assessed as follows:

Brand names

Liquor and gaming licences

Victorian gaming entitlements

Software

Customer relationships and contracts

Property development rights

Intellectual property and algorithms

Impairment

Indefinite useful life

Indefinite useful life

Life of the gaming entitlement (10 years)

Three to five years (five to 10 years for core systems)

Three to 10 years

Indefinite useful life

Nine years

Intangible assets are tested for impairment in accordance with the policy for impairment of non-financial assets 
disclosed in Note 3.6.

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
A
T
O
N

I

102

Notes to the Consolidated Financial Statements

Intangible assets represents goodwill, brand names, licences, software, and other. Goodwill arises 

when the Group acquires a business at a cost which exceeds the fair value of net assets acquired 

and represents the synergies expected to arise from the purchase. Brand names have mainly been 

recognised as a result of New Zealand supermarket acquisitions and help to identify and differentiate 

the Group’s network from others. Licences allow the Group to conduct certain business activities, 

including the resale of drinks and provision of leisure and hospitality services. Software includes 

programs and operating systems used by the Group. Other includes customer relationships and 

contracts and intellectual property and algorithms. 

Carrying amount at end of period

 2,881 

 167 

 4,671 

LIQUOR AND 

GAMING 

LICENCES 

$M

SOFTWARE 1 

$M

 2,552 

OTHER 

$M

 189 

 1,979 

 1,219 

(1,696)

(12)

(1,969)

(17)

3.5.1 

Carrying amounts of, and movements in, intangible assets

2021

Cost

impairment

Movement:

Less: accumulated amortisation and 

Carrying amount at end of period

Carrying amount at start of period

Acquisition of businesses2

Other acquisitions

Disposals, transfers, and other

Transfer of Endeavour Group’s assets 

to held for distribution

Amortisation expense

Impairment expense

Effect of movements in foreign 

exchange rates

2020

Cost

impairment

Movement:

Less: accumulated amortisation and 

Carrying amount at end of period

Carrying amount at start of period

Acquisition of businesses

Additions

Disposals, transfers, and other

Amortisation expense

Effect of movements in foreign 

exchange rates

Carrying amount at end of period

GOODWILL 

$M

 2,993 

(112)

 2,881 

 4,196 

 389 

 – 

 – 

 – 

(1)

(7)

GOODWILL 

$M

 4,323 

(127)

 4,196 

 4,217 

 30 

 – 

(4)

 – 

(47)

 4,196 

BRAND 

NAMES 

$M

 265 

–

 265 

 259 

 19 

 – 

 – 

 – 

 – 

(1)

 265 

BRAND 

NAMES 

$M

 260 

(1)

 259 

 – 

 8 

 – 

 – 

 – 

–

 – 

 2 

 6 

(1)

 – 

 – 

 – 

 12 

 8 

(15)

(16)

(1,194)

 1,358 

 15 

 551 

 3 

(104)

(318)

(8)

 – 

 1,358 

 – 

 262 

(19)

(291)

 – 

 1,219 

TOTAL 

$M

 5,999 

(1,328)

 4,671 

 7,717 

 582 

 567 

 2 

(3,845)

(335)

(9)

(8)

TOTAL 

$M

 9,073 

(1,356)

 7,717 

 42 

 278 

(38)

(308)

(50)

 7,717 

(22)

 167 

 64 

 157 

 10 

 – 

(64)

 – 

 – 

 – 

 119 

(55)

 64 

 – 

 – 

 – 

(1)

 – 

 64 

LIQUOR AND 

GAMING 

LICENCES 

$M

SOFTWARE 1 

$M

OTHER 

$M

 2,170 

 2,201 

(191)

 1,979 

(982)

 1,219 

 254 

 1,990 

 1,267 

 65 

 7,793 

1  Carrying amount at the end of the period includes assets under development of $471 million (2020: $335 million).

2  Acquisition of businesses relates to the acquisition of Quantium (refer to Note 5.1 for further details) and the acquisition of stores and venues.

(3)

 259 

 – 

 1,979 

 
 
 
 
 
 
 
 
 
104

Notes to the Consolidated Financial Statements

ASSETS AND

LIABILITIES 3

3.6 

IMPAIRMENT OF NON‑FINANCIAL ASSETS

3.6 

IMPAIRMENT OF NON‑FINANCIAL ASSETS (CONTINUED)

An impairment loss is incurred when the carrying amount of an asset or a cash‑generating unit (CGU) 
exceeds its estimated recoverable amount. The Group reviews the carrying amount of assets and CGUs 
at least annually and/or when there is an indication that the asset or CGU may be impaired.

The Group’s impairment testing is performed at both a total business unit level (group of CGUs) and an individual CGU level. 
The Group assessed the carrying amounts of property, plant and equipment, lease assets, goodwill and intangible assets 
and no impairments were recognised at the total business unit level. At an individual CGU level, no impairment charge was 
recognised other than for Metro Food Stores.

Metro Food Stores
On 23 June 2021, the Group announced it had completed a review of its Metro Food Stores network, given the impact of 
COVID-19 on sales in CBD and public transit sites. A total impairment charge of $47 million has been recognised in branch 
expenses relating to store and lease assets across 13 stores. In addition, the Group recognised $3 million of onerous contract 
and make good provisions for these stores.

In determining the impairment charge for these stores, the Group calculated the recoverable amount for each store based 
on a discounted cash flow model. The recoverable amount of each store was determined using assumptions included in the 
three-year strategic plan, which was formally approved by the Board during the second half of the period. The decrease in the 
recoverable amount of the cash-generating units reflects the material and negative impacts of COVID-19 on customer shopping 
habits, foot traffic, and sales in key transit traffic locations and a balanced view on the speed of recovery of CBD and transit 
customer movements and the likely impact of this on Metro Food Stores.

The assessment of the recoverable amount represents management’s best estimate, taking into account risks, uncertainties, 
and opportunities for improvement in each cash-generating unit. Management will continue to monitor the Metro Food Stores 
network to assess performance against these estimates and it is possible that future asset impairments may be required 
in relation to the Metro Food Stores network. For the 13 stores where store and lease assets were impaired, any change 
in assumption would result in a maximum additional impairment charge of $8 million, at which point these stores would have 
store and lease assets with a carrying value of nil.

FINANCIAL REPORTING IMPACTS OF COVID-19

Calculation of recoverable amount

The three-year F22 Board approved business plan was used in assessing value in use. This plan incorporates 
the estimated impact on the Group from COVID-19, which has shaped trading through the last 12-18 months. 
Refer to critical accounting estimates for further details.

Inventories

The carrying value of assets subject to impairment testing includes inventories which are carried at the lower 
of cost or net realisable value. There have been no material changes to the Group’s inventory provisions 
as a result of COVID-19.

SIGNIFICANT ACCOUNTING POLICIES 

Impairment of non‑financial assets

The carrying amounts of the Group’s lease assets (refer to Note 3.3), property, plant and equipment 

(refer to Note 3.4), and intangible assets (refer to Note 3.5) are reviewed for impairment as follows:

Lease assets, property, plant and 

When there is an indication that the asset may be impaired 

equipment, and finite life intangibles

(assessed at least each reporting date) or when there is an indication 

that a previously recognised impairment may need to be reversed

Goodwill and indefinite life intangibles

At least annually and when there is an indication that the asset may 

be impaired

Calculation of recoverable amount

The recoverable amount of an asset is the greater of its value in use and its fair value less costs to dispose. 

For an asset that does not generate largely independent cash inflows, recoverable amount is assessed at the 

cash-generating unit (CGU) level, which is the smallest group of assets generating cash inflows independent 

of other CGUs that benefit from the use of the respective asset. Goodwill is allocated to those CGUs or groups 

of CGUs that are expected to benefit from the business combination in which the goodwill arose, identified 

according to operating segments and grouped at the lowest levels for which goodwill is monitored for internal 

management purposes. 

For properties, the recoverable amount is assessed with reference to external valuations obtained every three 

years using current market rental value with regard to recent sales of comparable sites. Internal value in use 

assessments are performed during the intervening periods.

An impairment loss is recognised whenever the carrying amount of an asset or its CGU exceeds its recoverable 

amount. Impairment losses are recognised in the Consolidated Statement of Profit or Loss.

Impairment losses recognised in respect of a CGU are allocated first to reduce the carrying amount of any goodwill 

allocated to the CGU and then to reduce the carrying amount of other assets in the CGU on a pro-rata basis.

Reversal of impairment

An impairment loss is reversed, other than for goodwill, if there has been a change in the estimates used 

to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s 

carrying amount does not exceed the carrying amount that would have been determined, net of depreciation 

or amortisation, if no impairment loss had been recognised.

105

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

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P

O

R

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F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

 
 
 
 
 
 
 
 
 
104

Notes to the Consolidated Financial Statements

An impairment loss is incurred when the carrying amount of an asset or a cash‑generating unit (CGU) 

exceeds its estimated recoverable amount. The Group reviews the carrying amount of assets and CGUs 

at least annually and/or when there is an indication that the asset or CGU may be impaired.

The Group’s impairment testing is performed at both a total business unit level (group of CGUs) and an individual CGU level. 

The Group assessed the carrying amounts of property, plant and equipment, lease assets, goodwill and intangible assets 

and no impairments were recognised at the total business unit level. At an individual CGU level, no impairment charge was 

recognised other than for Metro Food Stores.

Metro Food Stores

On 23 June 2021, the Group announced it had completed a review of its Metro Food Stores network, given the impact of 

COVID-19 on sales in CBD and public transit sites. A total impairment charge of $47 million has been recognised in branch 

expenses relating to store and lease assets across 13 stores. In addition, the Group recognised $3 million of onerous contract 

and make good provisions for these stores.

In determining the impairment charge for these stores, the Group calculated the recoverable amount for each store based 

on a discounted cash flow model. The recoverable amount of each store was determined using assumptions included in the 

three-year strategic plan, which was formally approved by the Board during the second half of the period. The decrease in the 

recoverable amount of the cash-generating units reflects the material and negative impacts of COVID-19 on customer shopping 

habits, foot traffic, and sales in key transit traffic locations and a balanced view on the speed of recovery of CBD and transit 

customer movements and the likely impact of this on Metro Food Stores.

The assessment of the recoverable amount represents management’s best estimate, taking into account risks, uncertainties, 

and opportunities for improvement in each cash-generating unit. Management will continue to monitor the Metro Food Stores 

network to assess performance against these estimates and it is possible that future asset impairments may be required 

in relation to the Metro Food Stores network. For the 13 stores where store and lease assets were impaired, any change 

in assumption would result in a maximum additional impairment charge of $8 million, at which point these stores would have 

store and lease assets with a carrying value of nil.

FINANCIAL REPORTING IMPACTS OF COVID-19

Calculation of recoverable amount

The three-year F22 Board approved business plan was used in assessing value in use. This plan incorporates 

the estimated impact on the Group from COVID-19, which has shaped trading through the last 12-18 months. 

Refer to critical accounting estimates for further details.

Inventories

as a result of COVID-19.

The carrying value of assets subject to impairment testing includes inventories which are carried at the lower 

of cost or net realisable value. There have been no material changes to the Group’s inventory provisions 

3.6 

IMPAIRMENT OF NON‑FINANCIAL ASSETS

3.6 

IMPAIRMENT OF NON‑FINANCIAL ASSETS (CONTINUED)

ASSETS AND

LIABILITIES 3

105

A
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U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

SIGNIFICANT ACCOUNTING POLICIES 

Impairment of non‑financial assets

The carrying amounts of the Group’s lease assets (refer to Note 3.3), property, plant and equipment 
(refer to Note 3.4), and intangible assets (refer to Note 3.5) are reviewed for impairment as follows:

Lease assets, property, plant and 
equipment, and finite life intangibles

Goodwill and indefinite life intangibles

When there is an indication that the asset may be impaired 
(assessed at least each reporting date) or when there is an indication 
that a previously recognised impairment may need to be reversed

At least annually and when there is an indication that the asset may 
be impaired

Calculation of recoverable amount

The recoverable amount of an asset is the greater of its value in use and its fair value less costs to dispose. 
For an asset that does not generate largely independent cash inflows, recoverable amount is assessed at the 
cash-generating unit (CGU) level, which is the smallest group of assets generating cash inflows independent 
of other CGUs that benefit from the use of the respective asset. Goodwill is allocated to those CGUs or groups 
of CGUs that are expected to benefit from the business combination in which the goodwill arose, identified 
according to operating segments and grouped at the lowest levels for which goodwill is monitored for internal 
management purposes. 

For properties, the recoverable amount is assessed with reference to external valuations obtained every three 
years using current market rental value with regard to recent sales of comparable sites. Internal value in use 
assessments are performed during the intervening periods.

An impairment loss is recognised whenever the carrying amount of an asset or its CGU exceeds its recoverable 
amount. Impairment losses are recognised in the Consolidated Statement of Profit or Loss.

Impairment losses recognised in respect of a CGU are allocated first to reduce the carrying amount of any goodwill 
allocated to the CGU and then to reduce the carrying amount of other assets in the CGU on a pro-rata basis.

Reversal of impairment
An impairment loss is reversed, other than for goodwill, if there has been a change in the estimates used 
to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s 
carrying amount does not exceed the carrying amount that would have been determined, net of depreciation 
or amortisation, if no impairment loss had been recognised.

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
A
T
O
N

I

 
 
 
 
 
 
 
 
 
106

Notes to the Consolidated Financial Statements

3.6 

IMPAIRMENT OF NON‑FINANCIAL ASSETS (CONTINUED)

3.7 

INCOME TAXES

CRITICAL ACCOUNTING ESTIMATES

Key assumptions used in determining the recoverable amount of assets include expected future cash flows, 
long-term growth rates, and discount rates. 

In assessing value in use (VIU), estimated future cash flows are based on the Group’s most recent Board approved 
business plan covering a period not exceeding five years. The three-year F22 Board approved business plan 
incorporates the estimated impact on the Group from COVID-19 restrictions, the vaccine rollout, and the market 
conditions forecast through the recovery phase. Whilst there continues to be a significant degree of uncertainty 
associated with the impacts of COVID-19, the assessment of the recoverable amounts represents management’s 
best estimate taking into account the impacts on the Group and, other than in relation to the Metro Food Stores 
network, this has not resulted in a material change in the recoverable amount. However, if restrictions result 
in extensive store closures or disruption to the Group’s supply chain, there is a risk of a material change in the 
recoverable amount which may result in impairment.

Long-term growth rates are based on past experience, expectations of external market operating conditions, 
and other assumptions which take account of the specific features of each business unit. 

The recoverable amount has been determined using a VIU discounted cash flow model. In assessing VIU, 
the estimated future pre-tax cash flows are discounted to their present value using a pre-tax discount rate 
that reflects the current market assessments of the time value of money and risks specific to the asset. 
Pre-tax discount rates used vary depending on the nature of the business and the country of operation. 

The ranges of rates used in determining recoverable amounts are set out below:

Long-term growth rate
Pre-tax discount rate

2021
%

2.5
10–13

2020
%

2.5
9–13 

The Group believes that any reasonably possible change in the key assumptions applied would not cause the 
carrying value of assets to exceed their recoverable amount and result in a material impairment based on current 
economic conditions and CGU performance.

107

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

ASSETS AND

LIABILITIES 3

2021

$M

 983 

(10)

(162)

 811 

 604 

 207 

 811 

2021

$M

 2,210 

 740 

 2,950 

 885 

 29 

(89)

 3 

(5)

(2)

 821 

(10)

 811 

2021

$M

 1,371 

 – 

 1,371 

RESTATED1 

2020

$M

 688 

 8 

(120)

 576 

 417 

 159 

 576 

RESTATED1 

2020

$M

 1,355 

 430 

 1,785 

 536 

 39 

 – 

 4 

(6)

(5)

 568 

 8 

 576 

2020

$M

 1,327 

(204)

 1,123 

This section presents the total income tax expense charged to the Group in respect of amounts currently 

owing for taxable profits and future income taxes recoverable or payable in respect of temporary 

differences. The Group presents a reconciliation of its effective tax rate and a summary of changes 

in future income tax recoverable or payable by major category.

3.7.1 

Income tax expense recognised in the Consolidated Statement of Profit or Loss

Income tax expense

Current tax expense

Adjustments recognised in the current year in relation to the current tax of prior periods

Deferred tax relating to the origination and reversal of temporary differences

Income tax expense is attributable to:

Profit from continuing operations (as reported in the Consolidated Statement of Profit or Loss)

Profit from discontinued operations (refer to Note 5.2)

1  Refer to Note 1.1 for further details.

3.7.2 

Reconciliation between profit before income tax and income tax expense

Profit before income tax – continuing operations

Profit before income tax – discontinued operations (refer to Note 5.2)

Profit before income tax

Income tax expense using the Australian corporate tax rate of 30%

Tax effect of amounts which are not deductible/(taxable) in calculating taxable income:

Non-deductible expenses

Non-assessable income

Unrecognised tax losses from the current period

Impact of differences in offshore tax rates

Other

Adjustments relating to prior periods

Income tax expense

1  Refer to Note 1.1 for further details.

Deferred tax asset

Deferred tax liability

Net deferred tax asset

3.7.3 

Deferred tax balances recognised in the Consolidated Statement of Financial Position

 
 
 
 
 
 
 
 
 
106

Notes to the Consolidated Financial Statements

3.6 

IMPAIRMENT OF NON‑FINANCIAL ASSETS (CONTINUED)

3.7 

INCOME TAXES

ASSETS AND

LIABILITIES 3

107

A
N
N
U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

CRITICAL ACCOUNTING ESTIMATES

Key assumptions used in determining the recoverable amount of assets include expected future cash flows, 

long-term growth rates, and discount rates. 

In assessing value in use (VIU), estimated future cash flows are based on the Group’s most recent Board approved 

business plan covering a period not exceeding five years. The three-year F22 Board approved business plan 

incorporates the estimated impact on the Group from COVID-19 restrictions, the vaccine rollout, and the market 

conditions forecast through the recovery phase. Whilst there continues to be a significant degree of uncertainty 

associated with the impacts of COVID-19, the assessment of the recoverable amounts represents management’s 

best estimate taking into account the impacts on the Group and, other than in relation to the Metro Food Stores 

network, this has not resulted in a material change in the recoverable amount. However, if restrictions result 

in extensive store closures or disruption to the Group’s supply chain, there is a risk of a material change in the 

recoverable amount which may result in impairment.

Long-term growth rates are based on past experience, expectations of external market operating conditions, 

and other assumptions which take account of the specific features of each business unit. 

The recoverable amount has been determined using a VIU discounted cash flow model. In assessing VIU, 

the estimated future pre-tax cash flows are discounted to their present value using a pre-tax discount rate 

that reflects the current market assessments of the time value of money and risks specific to the asset. 

Pre-tax discount rates used vary depending on the nature of the business and the country of operation. 

The ranges of rates used in determining recoverable amounts are set out below:

Long-term growth rate

Pre-tax discount rate

2021

%

2.5

10–13

2020

%

2.5

9–13 

The Group believes that any reasonably possible change in the key assumptions applied would not cause the 

carrying value of assets to exceed their recoverable amount and result in a material impairment based on current 

economic conditions and CGU performance.

This section presents the total income tax expense charged to the Group in respect of amounts currently 
owing for taxable profits and future income taxes recoverable or payable in respect of temporary 
differences. The Group presents a reconciliation of its effective tax rate and a summary of changes 
in future income tax recoverable or payable by major category.

3.7.1 

Income tax expense recognised in the Consolidated Statement of Profit or Loss

Income tax expense
Current tax expense
Adjustments recognised in the current year in relation to the current tax of prior periods
Deferred tax relating to the origination and reversal of temporary differences

Income tax expense is attributable to:
Profit from continuing operations (as reported in the Consolidated Statement of Profit or Loss)
Profit from discontinued operations (refer to Note 5.2)

1  Refer to Note 1.1 for further details.

3.7.2 

Reconciliation between profit before income tax and income tax expense

Profit before income tax – continuing operations
Profit before income tax – discontinued operations (refer to Note 5.2)
Profit before income tax
Income tax expense using the Australian corporate tax rate of 30%
Tax effect of amounts which are not deductible/(taxable) in calculating taxable income:
Non-deductible expenses
Non-assessable income
Unrecognised tax losses from the current period
Impact of differences in offshore tax rates
Other

Adjustments relating to prior periods
Income tax expense

1  Refer to Note 1.1 for further details.

3.7.3 

Deferred tax balances recognised in the Consolidated Statement of Financial Position

Deferred tax asset
Deferred tax liability
Net deferred tax asset

2021
$M

 983 
(10)
(162)
 811 

 604 
 207 
 811 

2021
$M

 2,210 
 740 
 2,950 
 885 

 29 
(89)
 3 
(5)
(2)
 821 
(10)
 811 

2021
$M

 1,371 
 – 
 1,371 

RESTATED1 
2020
$M

 688 
 8 
(120)
 576 

 417 
 159 
 576 

RESTATED1 
2020
$M

 1,355 
 430 
 1,785 
 536 

 39 
 – 
 4 
(6)
(5)
 568 
 8 
 576 

2020
$M

 1,327 
(204)
 1,123 

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
A
T
O
N

I

 
 
 
 
 
 
 
 
 
108

Notes to the Consolidated Financial Statements

ASSETS AND

LIABILITIES 3

3.7 

INCOME TAXES (CONTINUED)

3.7 

INCOME TAXES (CONTINUED)

3.7.3 

Deferred tax balances recognised in the Consolidated Statement of Financial Position (continued)

3.7.4 

Tax consolidation

2021
Deferred tax assets
Property, plant and equipment
Lease liabilities
Provisions, accruals, and other liabilities
Cash flow and fair value hedges
Total deferred tax assets
Deferred tax liabilities
Intangible assets
Unrealised exchange differences
Lease assets
Prepayments
Other
Total deferred tax liabilities
Net deferred tax asset/(liability)

2020
Deferred tax assets
Property, plant and equipment
Lease liabilities
Provisions, accruals, and other liabilities
Cash flow and fair value hedges
Total deferred tax assets
Deferred tax liabilities
Intangible assets
Unrealised exchange differences
Lease assets
Prepayments
Other
Total deferred tax liabilities
Net deferred tax asset

OPENING 
BALANCE 
$M

RECOGNISED IN 
PROFIT OR LOSS 
$M

RECOGNISED 
IN OTHER 
COMPREHENSIVE 
INCOME 
$M

ACQUISITIONS 
AND OTHER 
$M

TRANSFERS TO 
ASSETS HELD 
FOR SALE OR 
DISTRIBUTION 
$M

CLOSING 
BALANCE 
$M

 73 
 4,549 
 924 
 20 
 5,566 

(619)
(33)
(3,796)
(1)
 6 
(4,443)
 1,123 

 111 
 154 
(24)
(5)
 236 

 – 
 2 
(22)
(5)
(49)
(74)
 162 

 – 
 – 
 5 
(10)
(5)

 – 
 2 
 – 
 – 
(18)
(16)
(21)

 – 
 1 
 10 
 – 
 11 

(53)
 – 
 – 
 – 
(8)
(61)
(50)

(99)
(1,133)
(126)
 – 
(1,358)

 550 
 – 
 935 
 1 
 29 
 1,515 
 157 

 85 
 3,571 
 789 
 5 
 4,450 

(122)
(29)
(2,883)
(5)
(40)
(3,079)
 1,371 

RECOGNISED 
ON INITIAL 
APPLICATION OF 
AASB 16 
$M

OPENING 
BALANCE 
$M

RECOGNISED IN 
PROFIT OR LOSS 
$M

RECOGNISED 
IN OTHER 
COMPREHENSIVE 
INCOME 
$M

ACQUISITIONS 
AND OTHER 
$M

CLOSING 
BALANCE 
$M

 48 
 – 
 1,008 
 14 
 1,070 

(633)
(32)
 – 
(7)
(7)
(679)
 391 

 – 
 4,391 
(139)
 – 
 4,252 

 – 
 – 
(3,669)
 – 
 – 
(3,669)
 583 

 25 
 158 
 57 
 – 
 240 

 – 
(5)
(127)
 6 
 6 
(120)
 120 

 – 
 – 
(2)
 6 
 4 

 – 
 4 
 – 
 – 
 – 
 4 
 8 

 – 
 – 
 – 
 – 
 – 

 14 
 – 
 – 
 – 
 7 
 21 
 21 

 73 
 4,549 
 924 
 20 
 5,566 

(619)
(33)
(3,796)
(1)
 6 
(4,443)
 1,123 

Unrecognised deferred tax assets
At the reporting date, the Group has unused capital losses of $1,170 million (2020: $1,165 million) available for offset against 
future capital gains. A deferred tax asset has not been recognised in association with these capital losses as it is not probable 
that there will be sufficient capital gains available against which these capital losses can be utilised in the foreseeable future. 

At the reporting date, the Group has unused revenue losses of $56 million (2020: $48 million). A deferred tax asset has not 
been recognised in respect of these revenue losses as it is not probable that there will be sufficient profit available against 
which these losses can be utilised during the five-year period that these losses remain available to be carried forward.

The Company and its wholly-owned Australian resident entities formed a tax consolidated group with effect from 1 July 2002. 

Woolworths Group Limited is the head entity of the tax consolidated group and has assumed the current tax liabilities of 

the members in the tax consolidated group (the Woolworths tax group). Income tax expense or benefit, deferred tax assets, 

and deferred tax liabilities arising from temporary differences of the members of the tax consolidated group are recognised 

by each subsidiary where the subsidiary would have been able to recognise the deferred tax asset or deferred tax liability 

on a standalone basis.

The members of the tax consolidated group have entered into a tax funding agreement with the Company which sets out the 

funding obligations in respect of income tax amounts. The agreement requires payments by the subsidiary to the Company 

equal to the income tax liability assumed by the Company. The Company is required to make payment to the subsidiary equal 

to the current tax asset assumed by the Company.

In respect of carried forward tax losses brought into the group on consolidation by subsidiary members, the Company will pay 

the subsidiary member for such losses when these losses are transferred to the tax consolidated group, where the subsidiary 

member would have been entitled to recognise the benefit of these losses on a standalone basis.

On 3 February 2020, Endeavour Group Limited and a number of its wholly-owned Australian resident subsidiaries exited the 

Woolworths tax group. As a result, no further obligation to the Company exists on balance date in relation to the period of time 

that these entities were a member of the Woolworths tax group. 

Income tax expense of $126 million (2020: $117 million) was charged by the Company to subsidiaries during the period through 

at call intercompany accounts.

SIGNIFICANT ACCOUNTING POLICIES 

Income tax expense in the Consolidated Statement of Profit or Loss for the period presented comprises current 

and deferred tax. Income tax is recognised in the Consolidated Statement of Profit or Loss except to the extent 

that it relates to items recognised in other comprehensive income, or directly in equity, in which case the tax 

is also recognised in other comprehensive income, or directly in equity, respectively.

Current tax payable represents the amount expected to be paid to taxation authorities on taxable income for the 

period, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable 

Current tax

in respect of previous periods.

Deferred tax

Deferred tax is calculated using the balance sheet method, providing for temporary differences between the 

carrying amounts of assets and liabilities for financial reporting and taxation purposes. Deferred tax is measured 

at the rates that are expected to apply in the period in which the liability is settled, or asset realised, based on tax 

rates enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition 

(other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable 

profit nor the accounting profit or in relation to the initial recognition of goodwill.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available 

against which the deductible temporary differences or unused tax losses and tax offsets can be utilised. Deferred 

tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

The benefit of intangible assets with an indefinite useful life will flow to the Group on an annual basis, therefore 

the carrying amount will be recovered through use.

Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation 

authority and the Group intends to settle its current tax assets and liabilities on a net basis.

109

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

 
 
 
 
 
 
 
 
 
108

Notes to the Consolidated Financial Statements

3.7 

INCOME TAXES (CONTINUED)

3.7 

INCOME TAXES (CONTINUED)

ASSETS AND

LIABILITIES 3

109

A
N
N
U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

3.7.3 

Deferred tax balances recognised in the Consolidated Statement of Financial Position (continued)

OPENING 

BALANCE 

RECOGNISED IN 

PROFIT OR LOSS 

$M

$M

COMPREHENSIVE 

ACQUISITIONS 

INCOME 

AND OTHER 

DISTRIBUTION 

$M

$M

$M

CLOSING 

BALANCE 

$M

RECOGNISED 

IN OTHER 

TRANSFERS TO 

ASSETS HELD 

FOR SALE OR 

2021

Deferred tax assets

Property, plant and equipment

Lease liabilities

Provisions, accruals, and other liabilities

Cash flow and fair value hedges

Total deferred tax assets

Deferred tax liabilities

Intangible assets

Unrealised exchange differences

Lease assets

Prepayments

Other

Total deferred tax liabilities

Net deferred tax asset/(liability)

2020

Deferred tax assets

Property, plant and equipment

Lease liabilities

Provisions, accruals, and other liabilities

Cash flow and fair value hedges

Total deferred tax assets

Deferred tax liabilities

Intangible assets

Unrealised exchange differences

Lease assets

Prepayments

Other

Total deferred tax liabilities

Net deferred tax asset

Unrecognised deferred tax assets

 73 

 4,549 

 924 

 20 

 5,566 

(619)

(33)

(3,796)

(1)

 6 

(4,443)

 1,123 

 48 

 – 

 1,008 

 14 

 1,070 

(633)

(32)

 – 

(7)

(7)

(679)

 391 

 111 

 154 

(24)

(5)

 236 

 – 

 2 

(22)

(5)

(49)

(74)

 162 

 – 

 – 

 5 

(10)

(5)

 – 

 2 

 – 

 – 

(18)

(16)

(21)

 – 

 – 

 – 

 – 

 – 

 – 

 4,391 

(139)

 4,252 

(3,669)

(3,669)

 583 

 25 

 158 

 57 

 – 

 240 

(127)

 – 

(5)

 6 

 6 

(120)

 120 

 – 

 1 

 10 

 – 

 11 

(53)

 – 

 – 

 – 

(8)

(61)

(50)

 – 

 – 

(2)

 6 

 4 

 – 

 4 

 – 

 – 

 – 

 4 

 8 

(1,358)

 4,450 

(99)

(1,133)

(126)

 – 

 550 

 – 

 935 

 1 

 29 

 1,515 

 157 

 85 

 3,571 

 789 

 5 

(122)

(29)

(2,883)

(5)

(40)

(3,079)

 1,371 

 – 

 – 

 – 

 – 

 – 

 14 

 – 

 – 

 – 

 7 

 21 

 21 

 73 

 4,549 

 924 

 20 

 5,566 

(619)

(33)

(3,796)

(1)

 6 

(4,443)

 1,123 

RECOGNISED 

ON INITIAL 

APPLICATION OF 

RECOGNISED 

IN OTHER 

OPENING 

BALANCE 

$M

AASB 16 

$M

RECOGNISED IN 

PROFIT OR LOSS 

COMPREHENSIVE 

ACQUISITIONS 

INCOME 

AND OTHER 

$M

$M

$M

CLOSING 

BALANCE 

$M

At the reporting date, the Group has unused capital losses of $1,170 million (2020: $1,165 million) available for offset against 

future capital gains. A deferred tax asset has not been recognised in association with these capital losses as it is not probable 

that there will be sufficient capital gains available against which these capital losses can be utilised in the foreseeable future. 

At the reporting date, the Group has unused revenue losses of $56 million (2020: $48 million). A deferred tax asset has not 

been recognised in respect of these revenue losses as it is not probable that there will be sufficient profit available against 

which these losses can be utilised during the five-year period that these losses remain available to be carried forward.

Tax consolidation

3.7.4 
The Company and its wholly-owned Australian resident entities formed a tax consolidated group with effect from 1 July 2002. 
Woolworths Group Limited is the head entity of the tax consolidated group and has assumed the current tax liabilities of 
the members in the tax consolidated group (the Woolworths tax group). Income tax expense or benefit, deferred tax assets, 
and deferred tax liabilities arising from temporary differences of the members of the tax consolidated group are recognised 
by each subsidiary where the subsidiary would have been able to recognise the deferred tax asset or deferred tax liability 
on a standalone basis.

The members of the tax consolidated group have entered into a tax funding agreement with the Company which sets out the 
funding obligations in respect of income tax amounts. The agreement requires payments by the subsidiary to the Company 
equal to the income tax liability assumed by the Company. The Company is required to make payment to the subsidiary equal 
to the current tax asset assumed by the Company.

In respect of carried forward tax losses brought into the group on consolidation by subsidiary members, the Company will pay 
the subsidiary member for such losses when these losses are transferred to the tax consolidated group, where the subsidiary 
member would have been entitled to recognise the benefit of these losses on a standalone basis.

On 3 February 2020, Endeavour Group Limited and a number of its wholly-owned Australian resident subsidiaries exited the 
Woolworths tax group. As a result, no further obligation to the Company exists on balance date in relation to the period of time 
that these entities were a member of the Woolworths tax group. 

Income tax expense of $126 million (2020: $117 million) was charged by the Company to subsidiaries during the period through 
at call intercompany accounts.

SIGNIFICANT ACCOUNTING POLICIES 

Income tax expense in the Consolidated Statement of Profit or Loss for the period presented comprises current 
and deferred tax. Income tax is recognised in the Consolidated Statement of Profit or Loss except to the extent 
that it relates to items recognised in other comprehensive income, or directly in equity, in which case the tax 
is also recognised in other comprehensive income, or directly in equity, respectively.

Current tax

Current tax payable represents the amount expected to be paid to taxation authorities on taxable income for the 
period, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable 
in respect of previous periods.

Deferred tax

Deferred tax is calculated using the balance sheet method, providing for temporary differences between the 
carrying amounts of assets and liabilities for financial reporting and taxation purposes. Deferred tax is measured 
at the rates that are expected to apply in the period in which the liability is settled, or asset realised, based on tax 
rates enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition 
(other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable 
profit nor the accounting profit or in relation to the initial recognition of goodwill.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available 
against which the deductible temporary differences or unused tax losses and tax offsets can be utilised. Deferred 
tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

The benefit of intangible assets with an indefinite useful life will flow to the Group on an annual basis, therefore 
the carrying amount will be recovered through use.

Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation 
authority and the Group intends to settle its current tax assets and liabilities on a net basis.

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
A
T
O
N

I

 
 
 
 
 
 
 
 
 
110

Notes to the Consolidated Financial Statements

ASSETS AND

LIABILITIES 3

3.8 

TRADE AND OTHER PAYABLES

3.9 

PROVISIONS (CONTINUED)

Trade and other payables mainly consists of amounts owing to the Group’s suppliers that have been 
invoiced or accrued. 

Movements in total self‑insured risks, restructuring, onerous contracts, store exit costs, and other provisions

Trade payables
Accruals
Contract liabilities

2021
$M

 4,832 
 1,271 
 364 
 6,467 

2020
$M

 5,843 
 1,415 
 250 
 7,508 

Contract liabilities
Contract liabilities represent consideration received for performance obligations not yet satisfied primarily relating to the Group’s 
loyalty programs and gift cards. Substantially all of the revenue deferred at period end will be recognised in the following period.

3.9 

PROVISIONS

Provisions are a liability recorded where there is uncertainty over the timing or amount that will be paid 
but the expected settlement amount can be reliably estimated by the Group. The main provisions held are 
in relation to employee benefits, self‑insured risks, restructuring, onerous contracts, and store exit costs.

Current
Employee benefits
Self-insured risks
Restructuring, onerous contracts, store exit costs, and other
Total current provisions
Non‑current
Employee benefits
Self-insured risks
Restructuring, onerous contracts, store exit costs, and other
Total non‑current provisions
Total provisions

2021
$M

2020
$M

 1,228 
 169 
 121 
 1,518 

 108 
 422 
 274 
 804 
 2,322 

 1,533 
 207 
 141 
 1,881 

 111 
 430 
 377 
 918 
 2,799 

111

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

Transfer of Endeavour Group liabilities to held for distribution

Movement:

Balance at start of period

Net provisions recognised

Cash payments

Other

Balance at end of period

Current

Non-current

Balance at end of period

SELF‑INSURED RISKS

AND OTHER

RESTRUCTURING, ONEROUS 

CONTRACTS, STORE EXIT COSTS, 

2021 

$M

 637 

 162 

(139)

(45)

(24)

 591 

 169 

 422 

 591 

2020 

$M

 603 

 187 

(134)

 – 

(19)

 637 

 207 

 430 

 637 

2021 

$M

 518 

 30 

(129)

(10)

(14)

 395 

 121 

 274 

 395 

2020 

$M

 543 

 128 

(144)

 – 

(9)

 518 

 141 

 377 

 518 

SIGNIFICANT ACCOUNTING POLICIES 

A provision is recognised when the Group has a present legal or constructive obligation as a result of a past event, 

it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate 

can be made as to the amount of the obligation. The amount recognised is the best estimate of the consideration 

required to settle the present obligation at the reporting date, taking into account the risks and uncertainties 

A liability is recognised for benefits accruing to employees in respect of annual leave and long service leave.

Liabilities expected to be settled within 12 months are measured at their nominal values using the remuneration 

rate expected to apply at the time of settlement.

Liabilities which are not expected to be settled within 12 months are measured as the present value of the estimated 

future cash outflows to be made by the Group in respect of services provided by employees up to the reporting date.

The provision for self-insured risks primarily represents the estimated liability for workers’ compensation 

surrounding the obligation.

Employee benefits

Self‑insurance

and public liability claims.

Restructuring

will occur.

Provision for restructuring is recognised when the Group has developed a detailed formal plan for the 

restructuring and has raised a valid expectation in those affected by the restructuring that the restructuring 

Onerous contracts and store exit costs

An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract 

exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect 

the least net cost of exiting from the contract, which is the lower of the cost of fulfilling the contract and any 

compensation or penalties arising from failure to fulfil the contract.

 
 
 
 
 
 
 
 
 
110

Notes to the Consolidated Financial Statements

3.8 

TRADE AND OTHER PAYABLES

3.9 

PROVISIONS (CONTINUED)

ASSETS AND

LIABILITIES 3

111

A
N
N
U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

Trade and other payables mainly consists of amounts owing to the Group’s suppliers that have been 

invoiced or accrued. 

Contract liabilities represent consideration received for performance obligations not yet satisfied primarily relating to the Group’s 

loyalty programs and gift cards. Substantially all of the revenue deferred at period end will be recognised in the following period.

Provisions are a liability recorded where there is uncertainty over the timing or amount that will be paid 

but the expected settlement amount can be reliably estimated by the Group. The main provisions held are 

in relation to employee benefits, self‑insured risks, restructuring, onerous contracts, and store exit costs.

Trade payables

Accruals

Contract liabilities

Contract liabilities

3.9 

PROVISIONS

Current

Employee benefits

Self-insured risks

Total current provisions

Non‑current

Employee benefits

Self-insured risks

Restructuring, onerous contracts, store exit costs, and other

Restructuring, onerous contracts, store exit costs, and other

Total non‑current provisions

Total provisions

2021

$M

 4,832 

 1,271 

 364 

 6,467 

2020

$M

 5,843 

 1,415 

 250 

 7,508 

2021

$M

2020

$M

 1,228 

 169 

 121 

 1,518 

 108 

 422 

 274 

 804 

 1,533 

 207 

 141 

 1,881 

 111 

 430 

 377 

 918 

 2,322 

 2,799 

Movements in total self‑insured risks, restructuring, onerous contracts, store exit costs, and other provisions

Movement:
Balance at start of period
Net provisions recognised
Cash payments
Transfer of Endeavour Group liabilities to held for distribution
Other
Balance at end of period
Current
Non-current
Balance at end of period

SELF‑INSURED RISKS

RESTRUCTURING, ONEROUS 
CONTRACTS, STORE EXIT COSTS, 
AND OTHER

2021 
$M

 637 
 162 
(139)
(45)
(24)
 591 
 169 
 422 
 591 

2020 
$M

 603 
 187 
(134)
 – 
(19)
 637 
 207 
 430 
 637 

2021 
$M

 518 
 30 
(129)
(10)
(14)
 395 
 121 
 274 
 395 

2020 
$M

 543 
 128 
(144)
 – 
(9)
 518 
 141 
 377 
 518 

SIGNIFICANT ACCOUNTING POLICIES 

A provision is recognised when the Group has a present legal or constructive obligation as a result of a past event, 
it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate 
can be made as to the amount of the obligation. The amount recognised is the best estimate of the consideration 
required to settle the present obligation at the reporting date, taking into account the risks and uncertainties 
surrounding the obligation.

Employee benefits

A liability is recognised for benefits accruing to employees in respect of annual leave and long service leave.

Liabilities expected to be settled within 12 months are measured at their nominal values using the remuneration 
rate expected to apply at the time of settlement.

Liabilities which are not expected to be settled within 12 months are measured as the present value of the estimated 
future cash outflows to be made by the Group in respect of services provided by employees up to the reporting date.

Self‑insurance

The provision for self-insured risks primarily represents the estimated liability for workers’ compensation 
and public liability claims.

Restructuring

Provision for restructuring is recognised when the Group has developed a detailed formal plan for the 
restructuring and has raised a valid expectation in those affected by the restructuring that the restructuring 
will occur.

Onerous contracts and store exit costs

An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract 
exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect 
the least net cost of exiting from the contract, which is the lower of the cost of fulfilling the contract and any 
compensation or penalties arising from failure to fulfil the contract.

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
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O
N

I

 
 
 
 
 
 
 
 
 
112

Notes to the Consolidated Financial Statements

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

3.9 

PROVISIONS (CONTINUED)

4 CAPITAL STRUCTURE, FINANCING, AND RISK MANAGEMENT

CRITICAL ACCOUNTING ESTIMATES

4.1 

EARNINGS PER SHARE

The estimates and judgements applied in determining the Group’s provisions involve a high degree of complexity 
and have a risk of causing a material adjustment in subsequent periods. Any changes in the estimates and 
judgements of the provision in future periods will be recognised in the Consolidated Statement of Profit or Loss. 

Discount rates

Where a provision is measured using the cash flows estimated to settle the obligation, with the exception of employee 
benefits, the cash flows are discounted using a pre-tax rate that reflects current market assessments of the time value 
of money and the risks specific to the liability. Employee benefits are discounted by reference to market yields at the 
end of the reporting period on high quality corporate bonds. Rates are reviewed periodically and, given the nature 
of the estimate, reasonably possible changes are not considered likely to have a material impact.

Employee benefits

In estimating the value of employee benefits, consideration is given to expected future salary and wage levels 
(including on-cost rates), experience of employee departures, and periods of service. The assumptions are 
reviewed periodically and, given the nature of the estimate, reasonably possible changes in assumptions are 
not considered likely to have a material impact.

Included in employee benefits is the team member remediation provision which represents the Group’s best 
estimate of the expenditure required to settle the obligation in accordance with the General Retail Industry Award 
(GRIA) and the Hospitality Industry (General) Award (HIGA). The calculation of this provision involves a substantial 
volume of data and a significant degree of complexity, interpretation, and estimation. In June 2021, the Fair Work 
Ombudsman issued a statement of claim to the Group challenging the Group’s interpretation of certain clauses of 
the GRIA in its calculation of team member remediation payments. The Group is defending this claim however it 
is at an early stage of the proceedings and the potential outcome and total costs associated with this matter are 
uncertain. The Group’s exposure may change materially based on the outcome of the legal proceedings. 

Self‑insurance

Self-insurance provisions are determined based on independent actuarial assessments, which consider numbers, 
amounts, and duration of claims and allow for future inflation and investment returns. Allowance is included for 
injuries which occurred before the reporting date, but where the claim is expected to be notified after the reporting 
date. The assumptions are reviewed periodically and, given the nature of the estimate, reasonably possible 
changes in assumptions are not considered likely to have a material impact.

Restructuring, onerous contracts, and store exit costs

Provisions for store closures and onerous lease contracts are recognised based on the lower of the estimated 
unavoidable net costs of meeting all leases and other obligations under the stores and associated contracts, 
and management’s best estimate of the compensation expected to be payable to landlords and other 
third parties as a result of early termination of contracts. Estimates differ depending on the rent, location, 
lease exit terms, and management’s assessment of the timing and likely termination costs.

Earnings per share presents the amount of profit generated for the reporting period attributable 

to shareholders divided by the weighted average number of shares on issue. The potential for any 

share rights issued by the Group to dilute existing shareholders’ ownership when the share rights 

are exercised are also presented.

Profit for the period attributable to equity holders of the parent entity used 

in earnings per share ($M)

Continuing operations

Discontinued operations

Weighted average number of shares used in earnings per share (shares, millions) 2

Basic earnings per share (cents per share) 2

Basic earnings per share

Diluted earnings per share 3

Continuing operations

Discontinued operations

Diluted earnings per share (cents per share) 2 , 3

Continuing operations

Discontinued operations

1  Refer to Note 1.1 for further details.

share trusts).

2  Weighted average number of shares has been adjusted to remove shares held in trust by Woolworths Custodian Pty Ltd (as trustee of various employee 

3 

Includes 5.7 million (2020: 7.5 million) shares deemed to be issued for no consideration in respect of employee performance rights.

2021

RESTATED1 

2020

 1,606 

 468 

 2,074 

 928 

 237 

 1,165 

 1,256.9 

 1,262.6 

 1,257.9 

 1,265.4 

 127.7 

 37.3 

 165.0 

 127.1 

 37.1 

 164.2 

 73.9 

 18.8 

 92.7 

 73.5 

 18.7 

 92.2 

113

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0

2

1

W

O

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O

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T

H

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G

R

O

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P

1

H

I

G

H

L

I

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P

E

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F

O

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M

A

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C

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2

R

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B

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I

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E

S

S

3

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P

O

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T

D

I

R

E

C

T

O

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'

4

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L

5

O

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A

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I

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112

Notes to the Consolidated Financial Statements

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

113

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U
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3.9 

PROVISIONS (CONTINUED)

4 CAPITAL STRUCTURE, FINANCING, AND RISK MANAGEMENT

CRITICAL ACCOUNTING ESTIMATES

4.1 

EARNINGS PER SHARE

The estimates and judgements applied in determining the Group’s provisions involve a high degree of complexity 

and have a risk of causing a material adjustment in subsequent periods. Any changes in the estimates and 

judgements of the provision in future periods will be recognised in the Consolidated Statement of Profit or Loss. 

Where a provision is measured using the cash flows estimated to settle the obligation, with the exception of employee 

benefits, the cash flows are discounted using a pre-tax rate that reflects current market assessments of the time value 

of money and the risks specific to the liability. Employee benefits are discounted by reference to market yields at the 

end of the reporting period on high quality corporate bonds. Rates are reviewed periodically and, given the nature 

of the estimate, reasonably possible changes are not considered likely to have a material impact.

Discount rates

Employee benefits

In estimating the value of employee benefits, consideration is given to expected future salary and wage levels 

(including on-cost rates), experience of employee departures, and periods of service. The assumptions are 

reviewed periodically and, given the nature of the estimate, reasonably possible changes in assumptions are 

not considered likely to have a material impact.

Included in employee benefits is the team member remediation provision which represents the Group’s best 

estimate of the expenditure required to settle the obligation in accordance with the General Retail Industry Award 

(GRIA) and the Hospitality Industry (General) Award (HIGA). The calculation of this provision involves a substantial 

volume of data and a significant degree of complexity, interpretation, and estimation. In June 2021, the Fair Work 

Ombudsman issued a statement of claim to the Group challenging the Group’s interpretation of certain clauses of 

the GRIA in its calculation of team member remediation payments. The Group is defending this claim however it 

is at an early stage of the proceedings and the potential outcome and total costs associated with this matter are 

uncertain. The Group’s exposure may change materially based on the outcome of the legal proceedings. 

Self‑insurance

Self-insurance provisions are determined based on independent actuarial assessments, which consider numbers, 

amounts, and duration of claims and allow for future inflation and investment returns. Allowance is included for 

injuries which occurred before the reporting date, but where the claim is expected to be notified after the reporting 

date. The assumptions are reviewed periodically and, given the nature of the estimate, reasonably possible 

changes in assumptions are not considered likely to have a material impact.

Restructuring, onerous contracts, and store exit costs

Provisions for store closures and onerous lease contracts are recognised based on the lower of the estimated 

unavoidable net costs of meeting all leases and other obligations under the stores and associated contracts, 

and management’s best estimate of the compensation expected to be payable to landlords and other 

third parties as a result of early termination of contracts. Estimates differ depending on the rent, location, 

lease exit terms, and management’s assessment of the timing and likely termination costs.

Earnings per share presents the amount of profit generated for the reporting period attributable 
to shareholders divided by the weighted average number of shares on issue. The potential for any 
share rights issued by the Group to dilute existing shareholders’ ownership when the share rights 
are exercised are also presented.

Profit for the period attributable to equity holders of the parent entity used 
in earnings per share ($M)
Continuing operations
Discontinued operations

Weighted average number of shares used in earnings per share (shares, millions) 2
Basic earnings per share
Diluted earnings per share 3
Basic earnings per share (cents per share) 2
Continuing operations
Discontinued operations

Diluted earnings per share (cents per share) 2 , 3
Continuing operations
Discontinued operations

2021

RESTATED1 
2020

 1,606 
 468 
 2,074 

 928 
 237 
 1,165 

 1,256.9 
 1,262.6 

 1,257.9 
 1,265.4 

 127.7 
 37.3 
 165.0 

 127.1 
 37.1 
 164.2 

 73.9 
 18.8 
 92.7 

 73.5 
 18.7 
 92.2 

1  Refer to Note 1.1 for further details.
2  Weighted average number of shares has been adjusted to remove shares held in trust by Woolworths Custodian Pty Ltd (as trustee of various employee 

share trusts).
Includes 5.7 million (2020: 7.5 million) shares deemed to be issued for no consideration in respect of employee performance rights.

3 

1

I

H
G
H
L
I
G
H
T
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P
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F
O
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M
A
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C
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2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
A
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O
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I

 
 
 
 
 
 
 
 
 
114

Notes to the Consolidated Financial Statements

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

4.2 

DIVIDENDS

4.3 

CONTRIBUTED EQUITY

Dividends are distributions of the Group’s profit after tax before significant items and assets to its 
shareholders.

Contributed equity represents the number of ordinary shares on issue less shares held by the Group. 

A reconciliation is presented to show the total number of ordinary shares held by the Group which 

reduces the number of total shares traded on‑market. 

2021

CENTS PER 
SHARE

TOTAL 
AMOUNT
$M

Current year interim 
Prior year final 
Dividends paid during the period
Issue of shares to satisfy the 
dividend reinvestment plan
Dividends paid in cash

 53 
 48 
 101 

 671 
 606 
 1,277 

(173)
 1,104 

All dividends are fully franked at a 30% tax rate.

DATE OF  
PAYMENT

CENTS PER 
SHARE

14 April 2021
6 October 2020

 46 
 57 
 103 

2020

TOTAL 
AMOUNT
$M

DATE OF  
PAYMENT

 580 
9 April 2020
 717  30 September 2019

 1,297 

(164)
 1,133 

On 26 August 2021, the Board of Directors declared a final dividend of 55 cents per share in respect of the 2021 financial period, 
fully franked at a 30% tax rate. The amount will be paid on or around 8 October 2021 and is expected to be $697 million. As the 
dividends were declared subsequent to 27 June 2021, no provision had been made at 27 June 2021.

Dividend Reinvestment Plan (DRP)
The DRP remains active. Eligible shareholders may participate in the DRP in respect of all or part of their shareholding. 
There is currently no DRP discount applied and no limit on the number of shares that can participate in the DRP. 

Shares will be allocated to shareholders under the DRP for the 2021 final dividend at an amount equal to the average of the daily 
volume weighted average market price of ordinary shares of the Company traded on the ASX over the period of 10 trading days 
commencing on 7 September 2021. The last date for receipt of election notices for the DRP is 6 September 2021. The Company 
intends to issue new shares to satisfy its obligations under the DRP.

During the period, 14.0% (2020: 12.6%) of the dividends paid were reinvested in shares of the Company. 

Demerger distribution
A demerger distribution liability equal to the fair value of the net assets of Endeavour Group to be distributed of $7,870 million 
has been recognised at 27 June 2021. The demerger distribution liability has been allocated between a capital reduction 
($904 million) and a demerger dividend ($6,966 million). Refer to Note 5.3.2 for further details on demerger accounting.

Franking credit balance

Franking credits available for future financial periods (tax paid basis, 30% tax rate)

2021
$M

1,740

2020
$M

1,546

The above amount represents the balance of the franking accounts at the end of the period, adjusted for:

•  Franking credits that will arise from the payment of income tax payable at the end of the period; and

•  Franking debits that will arise from the payment of dividends provided at the end of the period.

The above franking credit balance excludes $692 million attributable to Endeavour Group which will transfer on demerger 
(2020: $552 million) and $18 million attributable to other non-controlling interests (2020: $16 million).

1,267,652,417 fully paid ordinary shares (2020: 1,263,091,936)

Issue of shares to satisfy the dividend reinvestment plan

SHARE CAPITAL

Movement:

Balance at start of period

Demerger distribution

Balance at end of period

SHARES HELD IN TRUST

Movement:

Balance at start of period

2021

NUMBER

M

2020

$M

NUMBER

M

$M

 1,263.1 

 4.6 

 – 

 1,267.7 

 6,197 

 173 

(904)

 5,466 

 1,258.7 

 4.4 

 – 

 1,263.1 

 6,033 

 164 

 – 

 6,197 

Issue of shares to satisfy employee long-term incentive plans

Issue of shares to satisfy the dividend reinvestment plan

Purchase of shares by the Woolworths Employee Share Trust

Balance at end of period

(5.1)

 4.1 

 – 

(4.1)

(5.1)

(175)

 139 

 – 

(177)

(213)

(6.9)

 4.7 

(0.1)

(2.8)

(5.1)

(205)

 135 

(3)

(102)

(175)

Contributed equity at end of period

 1,262.6 

 5,253 

 1,258.0 

 6,022 

Demerger distribution

On 18 June 2021, the Group obtained shareholder approval for the separation of Endeavour Group. Accounting for the demerger 

is guided by AASB Interpretation 17 Distributions of Non-cash Assets to Owners. A demerger distribution liability equal to the 

fair value of the net assets to be distributed of $7,870 million has been recognised at 27 June 2021. The demerger distribution 

liability has been allocated between a capital reduction ($904 million) and a demerger dividend ($6,966 million). The value 

of the capital reduction has been determined in accordance with the tax allocation specified by an ATO ruling and has been 

recognised against share capital. Refer to Note 5.3.2 for further details on demerger accounting.

Holders of ordinary shares are entitled to receive dividends as declared and are entitled to one vote per share at shareholders’ 

meetings. In the event of winding up of the Company, ordinary shareholders rank after creditors and are fully entitled to any 

Share capital

proceeds on liquidation.

Share options and performance rights

and no voting rights.

Refer to Note 6.2 for further details of outstanding options and performance rights. Performance rights carry no rights to dividends 

115

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

 
 
 
 
 
 
 
 
 
114

Notes to the Consolidated Financial Statements

4.2 

DIVIDENDS

shareholders.

Dividends are distributions of the Group’s profit after tax before significant items and assets to its 

2021

CENTS PER 

SHARE

TOTAL 

AMOUNT

$M

Current year interim 

Prior year final 

Dividends paid during the period

Issue of shares to satisfy the 

dividend reinvestment plan

Dividends paid in cash

 53 

 48 

 101 

 671 

 606 

 1,277 

(173)

 1,104 

All dividends are fully franked at a 30% tax rate.

DATE OF  

PAYMENT

CENTS PER 

SHARE

DATE OF  

PAYMENT

14 April 2021

6 October 2020

 580 

9 April 2020

 717  30 September 2019

 46 

 57 

 103 

2020

TOTAL 

AMOUNT

$M

 1,297 

(164)

 1,133 

On 26 August 2021, the Board of Directors declared a final dividend of 55 cents per share in respect of the 2021 financial period, 

fully franked at a 30% tax rate. The amount will be paid on or around 8 October 2021 and is expected to be $697 million. As the 

dividends were declared subsequent to 27 June 2021, no provision had been made at 27 June 2021.

Dividend Reinvestment Plan (DRP)

The DRP remains active. Eligible shareholders may participate in the DRP in respect of all or part of their shareholding. 

There is currently no DRP discount applied and no limit on the number of shares that can participate in the DRP. 

Shares will be allocated to shareholders under the DRP for the 2021 final dividend at an amount equal to the average of the daily 

volume weighted average market price of ordinary shares of the Company traded on the ASX over the period of 10 trading days 

commencing on 7 September 2021. The last date for receipt of election notices for the DRP is 6 September 2021. The Company 

intends to issue new shares to satisfy its obligations under the DRP.

During the period, 14.0% (2020: 12.6%) of the dividends paid were reinvested in shares of the Company. 

A demerger distribution liability equal to the fair value of the net assets of Endeavour Group to be distributed of $7,870 million 

has been recognised at 27 June 2021. The demerger distribution liability has been allocated between a capital reduction 

($904 million) and a demerger dividend ($6,966 million). Refer to Note 5.3.2 for further details on demerger accounting.

Demerger distribution

Franking credit balance

Franking credits available for future financial periods (tax paid basis, 30% tax rate)

The above amount represents the balance of the franking accounts at the end of the period, adjusted for:

•  Franking credits that will arise from the payment of income tax payable at the end of the period; and

•  Franking debits that will arise from the payment of dividends provided at the end of the period.

The above franking credit balance excludes $692 million attributable to Endeavour Group which will transfer on demerger 

(2020: $552 million) and $18 million attributable to other non-controlling interests (2020: $16 million).

2021

$M

1,740

2020

$M

1,546

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

115

A
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2
1

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W
O
R
T
H
S
G
R
O
U
P

4.3 

CONTRIBUTED EQUITY

Contributed equity represents the number of ordinary shares on issue less shares held by the Group. 
A reconciliation is presented to show the total number of ordinary shares held by the Group which 
reduces the number of total shares traded on‑market. 

SHARE CAPITAL

1,267,652,417 fully paid ordinary shares (2020: 1,263,091,936)
Movement:
Balance at start of period
Issue of shares to satisfy the dividend reinvestment plan
Demerger distribution
Balance at end of period

SHARES HELD IN TRUST

Movement:
Balance at start of period
Issue of shares to satisfy employee long-term incentive plans
Issue of shares to satisfy the dividend reinvestment plan
Purchase of shares by the Woolworths Employee Share Trust
Balance at end of period

2021

NUMBER
M

2020

$M

NUMBER
M

$M

 1,263.1 
 4.6 
 – 
 1,267.7 

 6,197 
 173 
(904)
 5,466 

 1,258.7 
 4.4 
 – 
 1,263.1 

 6,033 
 164 
 – 
 6,197 

(5.1)
 4.1 
 – 
(4.1)
(5.1)

(175)
 139 
 – 
(177)
(213)

(6.9)
 4.7 
(0.1)
(2.8)
(5.1)

(205)
 135 
(3)
(102)
(175)

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

Contributed equity at end of period

 1,262.6 

 5,253 

 1,258.0 

 6,022 

'

Demerger distribution
On 18 June 2021, the Group obtained shareholder approval for the separation of Endeavour Group. Accounting for the demerger 
is guided by AASB Interpretation 17 Distributions of Non-cash Assets to Owners. A demerger distribution liability equal to the 
fair value of the net assets to be distributed of $7,870 million has been recognised at 27 June 2021. The demerger distribution 
liability has been allocated between a capital reduction ($904 million) and a demerger dividend ($6,966 million). The value 
of the capital reduction has been determined in accordance with the tax allocation specified by an ATO ruling and has been 
recognised against share capital. Refer to Note 5.3.2 for further details on demerger accounting.

Share capital
Holders of ordinary shares are entitled to receive dividends as declared and are entitled to one vote per share at shareholders’ 
meetings. In the event of winding up of the Company, ordinary shareholders rank after creditors and are fully entitled to any 
proceeds on liquidation.

Share options and performance rights
Refer to Note 6.2 for further details of outstanding options and performance rights. Performance rights carry no rights to dividends 
and no voting rights.

4

R
E
P
O
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T

F
I
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A
N
C
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I

5

O
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H
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F
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116

Notes to the Consolidated Financial Statements

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

4.4 

RESERVES

4.4 

RESERVES (CONTINUED)

Reserves represent the cumulative gains or losses that have been recognised in the Consolidated 
Statement of Other Comprehensive Income. 

2021

Balance at start of period
Effective portion of changes in the  
fair value of cash flow hedges,  
net of tax
Transfers to initial carrying 
amount of hedged items, 
net of tax
Foreign currency translation 
of foreign operations, net of tax
Share-based payments expense
Transfer of shares to satisfy 
employee long-term incentive plans
Demerger distribution
Recognition of put option over  
non-controlling interest
Change in the fair value 
of investments 
in equity securities
Balance at end of period

2020
Balance at start of period
Effective portion of changes in the  
fair value of cash flow hedges,  
net of tax
Transfers to initial carrying 
amount of hedged items, 
net of tax
Foreign currency translation 
of foreign operations, net of tax
Share-based payments expense
Transfer of shares to satisfy 
employee long-term incentive plans
Change in the fair value 
of investments 
in equity securities
Balance at end of period

CASH FLOW 
HEDGE 
RESERVE 
$M

FOREIGN 
CURRENCY 
TRANSLATION 
RESERVE 
$M

REMUNERATION 
RESERVE 
$M

DEMERGER 
RESERVE 
$M

OTHER 
RESERVES 
$M

(38)

 80 

 296 

 – 

 – 

 – 

 – 
 – 

 – 
(6,966)

 53 

 – 

 – 

 – 
 – 

 – 
 – 

 – 

 – 

 – 
 102 

(139)
 – 

TOTAL 
$M

 391 

(8)

 33 

(9)
 102 

(139)
(6,966)

(8)

 33 

 – 
 – 

 – 
 – 

 – 

 – 
(13)

 – 

 – 

(9)
 – 

 – 
 – 

 – 

 – 
 71 

 – 

 – 

(390)

(390)

Demerger reserve

The demerger reserve comprises the demerger dividend which is the difference between the fair value 

of Endeavour Group’s net assets to be distributed and the capital reduction. Refer to Note 5.3.2 for details 

 – 
 259 

 – 
(6,966)

(3)
(340)

(3)
(6,989)

of demerger accounting.

Other reserves

Other reserves comprises the following:

CASH FLOW 
HEDGE 
RESERVE 
$M

FOREIGN 
CURRENCY 
TRANSLATION 
RESERVE 
$M

REMUNERATION 
RESERVE 
$M

OTHER 
RESERVES 
$M

(29)

 134 

 335 

 50 

(1)

(8)

 – 
 – 

 – 

 – 
(38)

 – 

 – 

(54)
 – 

 – 

 – 
 80 

 – 

 – 

 – 
 96 

(135)

 – 
 296 

 – 

 – 

 – 
 – 

 – 

 3 
 53 

TOTAL 
$M

 490 

(1)

(8)

(54)
 96 

(135)

 3 
 391 

SIGNIFICANT ACCOUNTING POLICIES 

Cash flow hedge reserve

The cash flow hedge reserve comprises the effective portion of the cumulative net change in the fair value 

of cash flow hedging instruments related to hedged transactions that have not yet occurred. The cumulative 

deferred gain or loss on the hedge is recognised in the Consolidated Statement of Profit or Loss when the hedged 

transaction impacts profit or loss, consistent with the applicable accounting policy. Refer to Note 4.7 for details 

of hedging.

Foreign currency translation reserve (FCTR)

FCTR comprises all foreign exchange differences arising from the translation of the financial statements of foreign 

operations where their functional currency is different to the Group’s presentation currency. Gains and losses 

on hedging instruments that are designated as hedging instruments for hedges of net investments in foreign 

operations are also included in the FCTR. Refer to Note 4.7 for details of hedging.

Remuneration reserve

The employee remuneration reserve comprises the fair value of share-based payment plans recognised as an 

expense in the Consolidated Statement of Profit or Loss. Refer to Note 6.2 for details of share-based payments.

Shares issued by the Woolworths Employee Share Trust are charged against the reserve.

•  Asset revaluation reserve: arose on acquisition of the previously equity accounted investment in MGW Hotels 

Pty Ltd and relates to the change in fair value of the Group’s interest in non-current assets from the date 

of acquisition of the initial investment to the date control was achieved.

•  Equity instrument reserve: arises on the revaluation of investments in listed and unlisted equity securities. 

Subsequent to initial recognition, these investments are measured at fair value with any changes recognised 

in other comprehensive income.

•  Other reserve: arises on recognition of put options over non-controlling interests. Subsequent to initial 

recognition, the corresponding put option liability is measured at fair value with any changes recognised 

in profit or loss.

117

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

 
 
 
 
 
 
 
 
 
116

Notes to the Consolidated Financial Statements

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

117

A
N
N
U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

4.4 

RESERVES

4.4 

RESERVES (CONTINUED)

Reserves represent the cumulative gains or losses that have been recognised in the Consolidated 

Statement of Other Comprehensive Income. 

2021

Balance at start of period

Effective portion of changes in the  

fair value of cash flow hedges,  

net of tax

Transfers to initial carrying 

amount of hedged items, 

net of tax

Foreign currency translation 

of foreign operations, net of tax

Share-based payments expense

Transfer of shares to satisfy 

employee long-term incentive plans

Demerger distribution

Recognition of put option over  

non-controlling interest

Change in the fair value 

of investments 

in equity securities

Balance at end of period

2020

Balance at start of period

Effective portion of changes in the  

fair value of cash flow hedges,  

net of tax

Transfers to initial carrying 

amount of hedged items, 

net of tax

Foreign currency translation 

of foreign operations, net of tax

Share-based payments expense

Transfer of shares to satisfy 

employee long-term incentive plans

Change in the fair value 

of investments 

in equity securities

Balance at end of period

CASH FLOW 

FOREIGN 

CURRENCY 

HEDGE 

TRANSLATION 

REMUNERATION 

RESERVE 

$M

RESERVE 

$M

(38)

 80 

RESERVE 

$M

 296 

DEMERGER 

RESERVE 

OTHER 

RESERVES 

(8)

 33 

 – 

 – 

 – 

 – 

 – 

 – 

(13)

$M

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

(6,966)

 – 

 – 

 – 

 96 

(135)

 – 

 296 

 – 

 – 

 – 

 – 

 – 

 102 

(139)

 – 

 – 

 – 

 – 

(54)

 – 

 80 

 – 

 – 

(9)

 – 

 – 

 – 

 – 

 – 

 71 

(1)

(8)

 – 

 – 

 – 

 – 

(38)

$M

 53 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 3 

 53 

TOTAL 

$M

 391 

(8)

 33 

(9)

 102 

(139)

(6,966)

TOTAL 

$M

 490 

(1)

(8)

(54)

 96 

(135)

 3 

 391 

 – 

 259 

(6,966)

(3)

(340)

(3)

(6,989)

CASH FLOW 

FOREIGN 

CURRENCY 

HEDGE 

TRANSLATION 

REMUNERATION 

RESERVE 

$M

RESERVE 

$M

(29)

 134 

RESERVE 

$M

 335 

OTHER 

RESERVES 

$M

 50 

SIGNIFICANT ACCOUNTING POLICIES 

Cash flow hedge reserve

The cash flow hedge reserve comprises the effective portion of the cumulative net change in the fair value 
of cash flow hedging instruments related to hedged transactions that have not yet occurred. The cumulative 
deferred gain or loss on the hedge is recognised in the Consolidated Statement of Profit or Loss when the hedged 
transaction impacts profit or loss, consistent with the applicable accounting policy. Refer to Note 4.7 for details 
of hedging.

Foreign currency translation reserve (FCTR)

FCTR comprises all foreign exchange differences arising from the translation of the financial statements of foreign 
operations where their functional currency is different to the Group’s presentation currency. Gains and losses 
on hedging instruments that are designated as hedging instruments for hedges of net investments in foreign 
operations are also included in the FCTR. Refer to Note 4.7 for details of hedging.

Remuneration reserve

The employee remuneration reserve comprises the fair value of share-based payment plans recognised as an 
expense in the Consolidated Statement of Profit or Loss. Refer to Note 6.2 for details of share-based payments.

Shares issued by the Woolworths Employee Share Trust are charged against the reserve.

(390)

(390)

Demerger reserve

The demerger reserve comprises the demerger dividend which is the difference between the fair value 
of Endeavour Group’s net assets to be distributed and the capital reduction. Refer to Note 5.3.2 for details 
of demerger accounting.

Other reserves

Other reserves comprises the following:

•  Asset revaluation reserve: arose on acquisition of the previously equity accounted investment in MGW Hotels 
Pty Ltd and relates to the change in fair value of the Group’s interest in non-current assets from the date 
of acquisition of the initial investment to the date control was achieved.

•  Equity instrument reserve: arises on the revaluation of investments in listed and unlisted equity securities. 

Subsequent to initial recognition, these investments are measured at fair value with any changes recognised 
in other comprehensive income.

•  Other reserve: arises on recognition of put options over non-controlling interests. Subsequent to initial 

recognition, the corresponding put option liability is measured at fair value with any changes recognised 
in profit or loss.

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
A
T
O
N

I

 
 
 
 
 
 
 
 
 
118

Notes to the Consolidated Financial Statements

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

4.5 

CASH AND CASH EQUIVALENTS

4.6 

BORROWINGS

This section presents the components of the Group’s cash and cash equivalents balance and 
a reconciliation of the Group’s profit for the period to net cash flows provided by operating activities. 

This section provides a summary of the capital management activity of the Group during the period, 

including the Group’s borrowings. The Group manages its liquidity requirements with a range 

of short‑term money market loans, bank loans, and flexible debt instruments with varying maturities.

4.5.1 

Cash and cash equivalents as presented in the Consolidated Statement of Cash Flows

Cash and cash equivalents (as presented in the Consolidated Statement of Financial Position)
Cash and cash equivalents (included within assets held for sale or distribution)

4.5.2 

Reconciliation of profit for the period to net cash provided by operating activities

Profit for the period
Adjustments for:
Depreciation and amortisation
Impairment of non-financial assets 
Share-based payments expense
Gain on disposal of previously held equity interest in Quantium
Interest capitalised
Net loss on disposal and write-off of property, plant and equipment
Dividends received
Other

Changes in:
Decrease/(increase) in inventories
(Decrease)/increase in trade payables
(Decrease)/increase in provisions
Decrease /(increase) in trade and other receivables
Increase in other payables
Increase in deferred tax assets
Increase in income tax payable
Net cash provided by operating activities

2021
$M

 1,009 
 437 
 1,446 

2020
$M

 2,068 
 – 
 2,068 

2021
52 WEEKS
$M

2020
52 WEEKS
$M

 2,139 

 1,209 

 2,608 
 56 
 103 
(228)
(10)
 11 
(4)
(57)

 103 
(115)
(183)
 15 
 91 
(140)
 235 
 4,624 

 2,458 
 34 
 96 
 – 
(10)
 11 
(4)
 8 

(152)
 632 
 223 
(37)
 163 
(118)
 48 
 4,561 

SIGNIFICANT ACCOUNTING POLICIES 

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months 
or less.

4.6.1 

Capital structure

The Group manages its capital structure with the objective of enhancing long-term shareholder value through funding its 

business at an optimised weighted average cost of capital.

The Group returns capital to shareholders when consistent with its long-term capital structure objectives and where it will 

enhance shareholder value. 

The Group remains committed to solid investment grade credit ratings and a number of actions can be undertaken to support 

the credit profile, including the sale of non-core assets, further working capital initiatives, and adjusting growth capital 

expenditure and the property leasing profile. The Group’s credit ratings 1 are BBB (stable outlook) according to Standard 

& Poor’s and Baa2 (stable outlook) according to Moody’s. 

4.6.2 

Borrowings

(i) 

Financing transactions during 2021

In September 2020, the $654 million US Senior Notes matured. In November 2020, the $229 million European Medium Term 

Notes also matured. The Group refinanced these maturities with a $1 billion domestic Medium Term Note issuance in May 2020.

In December 2020, the Group entered into a $384 million bank guarantee facility and $398 million direct surety bond 

facility. The bank guarantee facility is backed by the international surety market. The facilities support the Group’s workers' 

compensation obligations as a self-insurer, where bank guarantees are issued in favour of Australian workers' compensation 

authorities. These transactions refinanced the Group’s $500 million bank guarantee facility, which matured in January 2021.

In April 2021, the $424 million US Senior Notes matured and the Group repaid this with its existing surplus cash and bank facilities.

(ii) 

Future financing activities

Subject to market conditions, the Group is intending to launch a debt capital markets transaction (total value estimated to be 

$1,500 million) where the proceeds will be used for general corporate purposes, including the long-term funding of the Group’s 

increased investment in Quantium, the acquisition of a controlling interest in PFD, and represents an opportunity to secure 

long-term, low cost debt and reduce the Group’s overall cost of debt and weighted average cost of capital.

1  These credit ratings 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 and are for the benefit of the Group’s debt providers.

119

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

 
 
 
 
 
 
 
 
 
118

Notes to the Consolidated Financial Statements

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

119

A
N
N
U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

4.5 

CASH AND CASH EQUIVALENTS

4.6 

BORROWINGS

This section presents the components of the Group’s cash and cash equivalents balance and 

a reconciliation of the Group’s profit for the period to net cash flows provided by operating activities. 

This section provides a summary of the capital management activity of the Group during the period, 
including the Group’s borrowings. The Group manages its liquidity requirements with a range 
of short‑term money market loans, bank loans, and flexible debt instruments with varying maturities.

Capital structure

4.6.1 
The Group manages its capital structure with the objective of enhancing long-term shareholder value through funding its 
business at an optimised weighted average cost of capital.

The Group returns capital to shareholders when consistent with its long-term capital structure objectives and where it will 
enhance shareholder value. 

The Group remains committed to solid investment grade credit ratings and a number of actions can be undertaken to support 
the credit profile, including the sale of non-core assets, further working capital initiatives, and adjusting growth capital 
expenditure and the property leasing profile. The Group’s credit ratings 1 are BBB (stable outlook) according to Standard 
& Poor’s and Baa2 (stable outlook) according to Moody’s. 

4.6.2 

Borrowings

Financing transactions during 2021

(i) 
In September 2020, the $654 million US Senior Notes matured. In November 2020, the $229 million European Medium Term 
Notes also matured. The Group refinanced these maturities with a $1 billion domestic Medium Term Note issuance in May 2020.

In December 2020, the Group entered into a $384 million bank guarantee facility and $398 million direct surety bond 
facility. The bank guarantee facility is backed by the international surety market. The facilities support the Group’s workers' 
compensation obligations as a self-insurer, where bank guarantees are issued in favour of Australian workers' compensation 
authorities. These transactions refinanced the Group’s $500 million bank guarantee facility, which matured in January 2021.

In April 2021, the $424 million US Senior Notes matured and the Group repaid this with its existing surplus cash and bank facilities.

Future financing activities

(ii) 
Subject to market conditions, the Group is intending to launch a debt capital markets transaction (total value estimated to be 
$1,500 million) where the proceeds will be used for general corporate purposes, including the long-term funding of the Group’s 
increased investment in Quantium, the acquisition of a controlling interest in PFD, and represents an opportunity to secure 
long-term, low cost debt and reduce the Group’s overall cost of debt and weighted average cost of capital.

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

4.5.1 

Cash and cash equivalents as presented in the Consolidated Statement of Cash Flows

Cash and cash equivalents (as presented in the Consolidated Statement of Financial Position)

Cash and cash equivalents (included within assets held for sale or distribution)

4.5.2 

Reconciliation of profit for the period to net cash provided by operating activities

Profit for the period

Adjustments for:

Depreciation and amortisation

Impairment of non-financial assets 

Share-based payments expense

Gain on disposal of previously held equity interest in Quantium

Net loss on disposal and write-off of property, plant and equipment

Interest capitalised

Dividends received

Other

Changes in:

Decrease/(increase) in inventories

(Decrease)/increase in trade payables

(Decrease)/increase in provisions

Decrease /(increase) in trade and other receivables

Increase in other payables

Increase in deferred tax assets

Increase in income tax payable

Net cash provided by operating activities

2021

$M

 1,009 

 437 

 1,446 

2020

$M

 2,068 

 – 

 2,068 

2021

52 WEEKS

$M

2020

52 WEEKS

$M

 2,139 

 1,209 

 2,608 

 2,458 

 56 

 103 

(228)

(10)

 11 

(4)

(57)

 103 

(115)

(183)

 15 

 91 

(140)

 235 

 34 

 96 

 – 

(10)

 11 

(4)

 8 

(152)

 632 

 223 

(37)

 163 

(118)

 48 

 4,624 

 4,561 

SIGNIFICANT ACCOUNTING POLICIES 

Cash and cash equivalents

or less.

Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months 

N
F
O
R
M
A
T
O
N

I

1  These credit ratings 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 and are for the benefit of the Group’s debt providers.

5

I

O
T
H
E
R

 
 
 
 
 
 
 
 
 
120

Notes to the Consolidated Financial Statements

4.6 

BORROWINGS (CONTINUED)

4.6.3  Movements in borrowings

NON‑CASH MOVEMENTS

CASH MOVEMENTS

NOTIONAL VALUE

CARRYING VALUE 

2021
Current, unsecured
Short-term money 
market loans
Bank loans
Securities
Total current 
borrowings
Non‑current, 
unsecured
Bank loans
Securities
Unamortised 
borrowing costs
Total non‑current 
borrowings
Total

TRANSFERS 
FROM 
 NON‑CURRENT  
TO CURRENT 
$M

OPENING 
BALANCE 
$M

EFFECT OF 
MOVEMENTS 
IN FOREIGN 
EXCHANGE 
RATES 1 
$M

OTHER2 
$M

PROCEEDS 
$M

REPAYMENTS 
$M

CLOSING 
BALANCE 
$M

 – 
 220 
 1,807 

 2,027 

 500 
 1,420 

(16)

 1,904 
 3,931 

 – 
 – 
 – 

 – 

 – 
 – 

 – 

 – 
 – 

 – 
 – 
(500)

(500)

 – 
 – 

 – 

 – 
(500)

 – 
(4)
 – 

(4)

 – 
(4)

 3 

(1)
(5)

 44 
 77 
 – 

 121 

 850 
 – 

 – 

 850 
 971 

 – 
(218)
(1,307)

(1,525)

 – 
 – 

 – 

 – 
(1,525)

 44 
 75 
 – 

 119 

 1,350 
 1,416 

(13)

 2,753 
 2,872 

1  The $500 million effect of movements in foreign exchange rates on securities represents the cumulative foreign exchange losses on facilities that matured 

during the period. These cumulative foreign exchange losses were offset by cumulative foreign exchange gains on cross currency swaps which also matured 
during the period. Refer to Note 4.7.1 for further details.

2  Other includes $4 million of bank loans related to Endeavour Group which has been transferred to liabilities held for distribution.

NON‑CASH MOVEMENTS

CASH MOVEMENTS

TRANSFERS 
FROM 
 NON‑CURRENT  
TO CURRENT 
$M

OPENING 
BALANCE 
$M

EFFECT OF 
MOVEMENTS 
IN FOREIGN 
EXCHANGE 
RATES 
$M

OTHER 
$M

PROCEEDS 
$M

REPAYMENTS 
$M

CLOSING 
BALANCE 
$M

 39 
 235 
 – 

 274 

 678 
 2,178 

(4)
 3 

 – 
 108 
 1,769 

 1,877 

(108)
(1,769)

 – 
 – 

 2,855 
 3,129 

(1,877)
 – 

 – 
 – 
 38 

 38 

 – 
 – 

 – 
 – 

 – 
 38 

 – 
 – 
 – 

 – 

 – 
 11 

 1 
(3)

 9 
 9 

 – 
 54 
 – 

 54 

 500 
 1,000 

 – 
 – 

 1,500 
 1,554 

(39)
(177)
 – 

 – 
 220 
 1,807 

(216)

 2,027 

(570)
 – 

(13)
 – 

(583)
(799)

 500 
 1,420 

(16)
 – 

 1,904 
 3,931 

2020
Current, unsecured
Short-term money 
market loans
Bank loans
Securities
Total current 
borrowings
Non‑current, 
unsecured
Bank loans
Securities
Unamortised 
borrowing costs
Finance leases
Total non‑current 
borrowings
Total

4.6 

BORROWINGS (CONTINUED)

4.6.4 

Composition of debt

Short‑term money market loans

Money market loan, on call

Bank loans (current)

Committed Revolving Credit Facility1

Bank loans 2

Bank loans 2

Bank loans

Securities (current)

US Senior Notes (US 144A)

US Senior Notes (US 144A)

European Medium Term Notes

Bank loans (non‑current)

Revolving Credit Facility3

Revolving Credit Facility

Syndicated Bank Loan

Syndicated Bank Loan

Securities (non‑current)

Medium Term Notes (Green Bond)4

Domestic Notes

Domestic Notes 4

CURRENCY

MATURITY

AUD

At call

CNY

AUD

AUD

AUD

USD

USD

JPY

AUD

AUD

AUD

AUD

AUD

AUD

AUD

Feb 21

Sep 20

Apr 21

Jun 22

Sep 20

Apr 21

Nov 20

Jun 22

Oct 22

Nov 23

Nov 26

Apr 24

May 25

May 30

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

2021

$M

 44 

 44 

 – 

 – 

 – 

 75 

 75 

 – 

 – 

 – 

 – 

 150 

 200 

 500 

 500 

 1,350 

 400 

 400 

 600 

2020

$M

 – 

 – 

 79 

 65 

 76 

 – 

 220 

 654 

 424 

 229 

 1,307 

 – 

 – 

 – 

 500 

 500 

 400 

 400 

 600 

2021

$M

 44 

 44 

 – 

 – 

 – 

 75 

 75 

 – 

 – 

 – 

 – 

 150 

 200 

 500 

 500 

 1,350 

 413 

 400 

 603 

 1,416 

2020

$M

 – 

 – 

 79 

 65 

 76 

 – 

 220 

 898 

 637 

 272 

 1,807 

 – 

 – 

 – 

 500 

 500 

 420 

 400 

 600 

 1,420 

1  Drawn by a subsidiary outside the Woolworths Group Limited Deed of Cross Guarantee.

2 

In May 2019, the Group entered into a series of cross currency swaps with a bank counterparty to bring forward and realise the positive fair value from 

existing cross currency swaps hedging the US Senior Notes. 

3  This facility has been classified as non-current at 27 June 2021 as its maturity date is 28 June 2022.

4  The Medium Term Notes (Green Bond) and Domestic Notes are the hedged item in a fair value hedge relationship and are subject to changes in the carrying 

amount due to fair value adjustments attached to each arrangement.

 1,400 

 1,400 

SIGNIFICANT ACCOUNTING POLICIES 

Borrowings

Borrowings are recognised initially at fair value less attributable transaction costs. Subsequently, borrowings are 

stated at amortised cost. Any difference between cost and redemption value is recognised in the Consolidated 

Statement of Profit or Loss over the period of the borrowings.

121

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

 
 
 
 
 
 
 
 
 
120

Notes to the Consolidated Financial Statements

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

121

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P

4.6 

BORROWINGS (CONTINUED)

4.6.3  Movements in borrowings

4.6 

BORROWINGS (CONTINUED)

4.6.4 

Composition of debt

NON‑CASH MOVEMENTS

CASH MOVEMENTS

NOTIONAL VALUE

CARRYING VALUE 

TRANSFERS 

FROM 

OPENING 

BALANCE 

 NON‑CURRENT  

TO CURRENT 

$M

$M

EFFECT OF 

MOVEMENTS 

IN FOREIGN 

EXCHANGE 

RATES 1 

$M

OTHER2 

$M

PROCEEDS 

REPAYMENTS 

$M

$M

CLOSING 

BALANCE 

$M

2021

Current, unsecured

Short-term money 

market loans

Bank loans

Securities

Total current 

borrowings

Non‑current, 

unsecured

Bank loans

Securities

Unamortised 

borrowing costs

Total non‑current 

borrowings

Total

2020

Current, unsecured

Short-term money 

market loans

Bank loans

Securities

Total current 

borrowings

Non‑current, 

unsecured

Bank loans

Securities

Unamortised 

borrowing costs

Finance leases

Total non‑current 

borrowings

Total

1  The $500 million effect of movements in foreign exchange rates on securities represents the cumulative foreign exchange losses on facilities that matured 

during the period. These cumulative foreign exchange losses were offset by cumulative foreign exchange gains on cross currency swaps which also matured 

during the period. Refer to Note 4.7.1 for further details.

2  Other includes $4 million of bank loans related to Endeavour Group which has been transferred to liabilities held for distribution.

NON‑CASH MOVEMENTS

CASH MOVEMENTS

TRANSFERS 

FROM 

OPENING 

BALANCE 

 NON‑CURRENT  

TO CURRENT 

$M

$M

EFFECT OF 

MOVEMENTS 

IN FOREIGN 

EXCHANGE 

RATES 

$M

OTHER 

$M

PROCEEDS 

REPAYMENTS 

$M

$M

CLOSING 

BALANCE 

$M

 – 

 220 

 1,807 

 2,027 

 500 

 1,420 

(16)

 1,904 

 3,931 

 39 

 235 

 – 

 274 

 678 

 2,178 

(4)

 3 

 2,855 

 3,129 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 108 

 1,769 

 1,877 

(108)

(1,769)

 – 

 – 

 – 

(1,877)

 – 

 – 

(500)

(500)

 – 

 – 

 – 

 – 

(500)

 – 

 – 

 38 

 38 

 – 

 – 

 – 

 – 

 – 

 38 

 – 

(4)

 – 

(4)

 – 

(4)

 3 

(1)

(5)

 – 

 – 

 – 

 – 

 – 

 11 

 1 

(3)

 9 

 9 

 44 

 77 

 – 

 121 

 850 

 – 

 – 

 850 

 971 

 – 

(218)

(1,307)

(1,525)

 – 

 – 

 – 

 – 

(1,525)

 44 

 75 

 – 

 119 

 1,350 

 1,416 

(13)

 2,753 

 2,872 

 – 

 54 

 – 

 54 

 500 

 1,000 

 – 

 – 

 1,500 

 1,554 

(39)

(177)

 – 

 – 

 220 

 1,807 

(216)

 2,027 

(570)

 – 

(13)

 – 

(583)

(799)

 500 

 1,420 

(16)

 – 

 1,904 

 3,931 

Short‑term money market loans
Money market loan, on call

Bank loans (current)
Committed Revolving Credit Facility1
Bank loans 2
Bank loans 2
Bank loans

Securities (current)
US Senior Notes (US 144A)
US Senior Notes (US 144A)
European Medium Term Notes

Bank loans (non‑current)
Revolving Credit Facility3
Revolving Credit Facility
Syndicated Bank Loan
Syndicated Bank Loan

Securities (non‑current)
Medium Term Notes (Green Bond)4
Domestic Notes
Domestic Notes 4

CURRENCY

MATURITY

AUD

At call

CNY

AUD

AUD

AUD

USD

USD

JPY

AUD

AUD

AUD

AUD

AUD

AUD

AUD

Feb 21
Sep 20
Apr 21
Jun 22

Sep 20
Apr 21
Nov 20

Jun 22
Oct 22
Nov 23
Nov 26

Apr 24
May 25
May 30

2021
$M

 44 
 44 

 – 
 – 
 – 
 75 
 75 

 – 
 – 
 – 
 – 

 150 
 200 
 500 
 500 
 1,350 

 400 
 400 
 600 
 1,400 

2020
$M

 – 
 – 

 79 
 65 
 76 
 – 
 220 

 654 
 424 
 229 
 1,307 

 – 
 – 
 – 
 500 
 500 

 400 
 400 
 600 
 1,400 

2021
$M

 44 
 44 

 – 
 – 
 – 
 75 
 75 

 – 
 – 
 – 
 – 

 150 
 200 
 500 
 500 
 1,350 

 413 
 400 
 603 
 1,416 

2020
$M

 – 
 – 

 79 
 65 
 76 
 – 
 220 

 898 
 637 
 272 
 1,807 

 – 
 – 
 – 
 500 
 500 

 420 
 400 
 600 
 1,420 

1  Drawn by a subsidiary outside the Woolworths Group Limited Deed of Cross Guarantee.
2 

In May 2019, the Group entered into a series of cross currency swaps with a bank counterparty to bring forward and realise the positive fair value from 
existing cross currency swaps hedging the US Senior Notes. 

3  This facility has been classified as non-current at 27 June 2021 as its maturity date is 28 June 2022.
4  The Medium Term Notes (Green Bond) and Domestic Notes are the hedged item in a fair value hedge relationship and are subject to changes in the carrying 

amount due to fair value adjustments attached to each arrangement.

SIGNIFICANT ACCOUNTING POLICIES 

Borrowings

Borrowings are recognised initially at fair value less attributable transaction costs. Subsequently, borrowings are 
stated at amortised cost. Any difference between cost and redemption value is recognised in the Consolidated 
Statement of Profit or Loss over the period of the borrowings.

1

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A
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C
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2

R
E
V
I
E

W

B
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I
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E
S
S

3

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P
O
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T

I

D
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E
C
T
O
R
S

'

4

R
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P
O
R
T

F
I
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A
N
C
A
L

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5

O
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H
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R

I

N
F
O
R
M
A
T
O
N

I

 
 
 
 
 
 
 
 
 
122

Notes to the Consolidated Financial Statements

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

4.7 

FINANCIAL RISK MANAGEMENT

4.7 

FINANCIAL RISK MANAGEMENT (CONTINUED)

This section provides a summary of the Group’s exposure to market, liquidity, and credit risks, 
along with the Group’s policies and strategies in place to mitigate these risks.

4.7.1 

Market risk (continued)

(iii) 

Hedging arrangements

The Group’s Treasury function is responsible for managing its liquidity, funding, and capital requirements, and identifying 
and managing financial risks relating to the Group’s operations. These financial risks include:

•  Market risk (refer to Note 4.7.1);

•  Liquidity risk (refer to Note 4.7.2); and

•  Credit risk (refer to Note 4.7.3).

These risks affect the fair value measurements applied by the Group, which are detailed in Note 4.7.4.

The Group adheres to a treasury policy approved by the Board, which set written principles on liquidity risk, interest rate 
risk, foreign exchange risk, credit risk, and the use of derivatives for hedging purposes. The Treasury function reports on its 
compliance with the policy to the Board and such compliance is reviewed periodically by the Group’s internal auditors.

The Group holds various types of derivatives to hedge its exposures to variability in interest rates and foreign exchange rates.

The Group does not enter into or trade financial instruments, including derivatives, for speculative purposes.

4.7.1 

Market risk

Interest rate risk

(i) 
Interest rate risk is the risk that a change in interest rates may negatively impact the Group’s cash flow or profitability because 
the Group’s borrowings reset directly in accordance with interest rate benchmarks or reset regularly to current rates influenced 
by interest rate benchmarks. The risk is managed by maintaining an appropriate mix between floating and fixed rate borrowings 
and through the use of approved derivatives to hedge the risk.

Foreign exchange risk

(ii) 
Foreign exchange risk is the risk that a change in foreign exchange rates may negatively impact the Group’s cash flow 
or profitability because the Group has an exposure to a foreign currency or has foreign currency denominated obligations. 

To hedge against the majority of this exposure, the Group uses approved derivatives to hedge up to 100% of the risk. 
The exposure to purchases of inventory in foreign currencies is primarily managed through forward exchange contracts 
and foreign currency options. These have been designated as cash flow hedges and the Group has established a 100% 
hedge relationship against the identified exposure.

To hedge the risk of adverse movements in foreign exchange rates in relation to borrowings denominated in foreign currency, 
the Group enters into cross currency swaps under which it agrees to exchange specified principal and interest foreign currency 
amounts at an agreed future date at a specified exchange rate. All foreign currency term borrowings are 100% hedged in this way.

Foreign currency exposures arising on translation of net investments in foreign subsidiaries are predominantly unhedged. 

123

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N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

At the reporting date, the fair value and notional amounts of derivatives entered into for hedging purposes for the Group are:

NOTIONAL VALUE

FAIR VALUE ASSET

FAIR VALUE LIABILITY

2020

$M

2021

$M

2020

$M

Cash flow hedges

Forward exchange contracts

Foreign currency options

Cross currency swaps

US Senior Notes (US144A)

US Senior Notes (US144A)

European Medium Term Notes

Interest rate swaps

US Senior Notes (US144A)

US Senior Notes (US144A)

European Medium Term Notes

Fair value hedges

Interest rate swaps

Total

2021

$M

 710 

 190 

 – 

 – 

 – 

 – 

 – 

 – 

 1,523 

 74 

 654 

 424 

 229 

 654 

 424 

 229 

2021

$M

(19)

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

(7)

(7)

(26)

2020

$M

(53)

 – 

 – 

 – 

 – 

 – 

(9)

(20)

(2)

(31)

 – 

 – 

 – 

(84)

 2 

 1 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 13 

 10 

 23 

 26 

 7 

 2 

 248 

 229 

 42 

 519 

 – 

 – 

 – 

 – 

 20 

 – 

 20 

 548 

Medium Term Notes (Green Bond)

Domestic Notes

 400 

 600 

 400 

 – 

Forward exchange contracts and foreign currency options

At the reporting date, the net amount of unrealised losses under forward exchange contracts and foreign currency options 

hedging anticipated purchases of inventory and equipment is $16 million (2020: $44 million unrealised loss).

The hedge relationships are all assessed as highly effective with insignificant hedge ineffectiveness and the loss of $16 million 

has been recognised in the hedge reserve (2020: $44 million loss). 

The weighted average exchange rates hedged by outstanding forward exchange contracts and foreign currency options are 

AUD/USD: 0.73 (2020: 0.67) and AUD/EUR: 0.63 (2020: 0.60).

Cross currency swaps

At the reporting date, there were no cross currency swaps outstanding. All cross currency swaps were settled during the period 

matching the maturity of the underlying debt which was repaid during the period.

At the reporting date, there were no interest rate swaps designated in a cash flow hedge relationship. All interest rate swaps 

previously designated in cash flow hedge relationships were settled during the period, matching the maturity of the underlying 

Interest rate swaps – cash flow hedges

debt which was repaid during the period.

Interest rate swaps – fair value hedges

At the reporting date, interest rate swaps designated as fair value hedges have an unrealised gain of $16 million (2020: $20 million 

unrealised gain). These interest rate swaps are designated to be in a 100% hedge relationship against the identified exposure, 

and the movement in the unrealised gain of a $4 million loss has been recognised in the Consolidated Statement of Profit or Loss 

(2020: $11 million gain), offsetting the movement in the fair value of the hedged item. The weighted average interest rate hedged 

is BBSW + 1.20% (2020: BBSW + 1.20%).

 
 
 
 
 
 
 
 
 
122

Notes to the Consolidated Financial Statements

This section provides a summary of the Group’s exposure to market, liquidity, and credit risks, 

along with the Group’s policies and strategies in place to mitigate these risks.

The Group’s Treasury function is responsible for managing its liquidity, funding, and capital requirements, and identifying 

and managing financial risks relating to the Group’s operations. These financial risks include:

•  Market risk (refer to Note 4.7.1);

• 

Liquidity risk (refer to Note 4.7.2); and

•  Credit risk (refer to Note 4.7.3).

These risks affect the fair value measurements applied by the Group, which are detailed in Note 4.7.4.

The Group adheres to a treasury policy approved by the Board, which set written principles on liquidity risk, interest rate 

risk, foreign exchange risk, credit risk, and the use of derivatives for hedging purposes. The Treasury function reports on its 

compliance with the policy to the Board and such compliance is reviewed periodically by the Group’s internal auditors.

The Group holds various types of derivatives to hedge its exposures to variability in interest rates and foreign exchange rates.

The Group does not enter into or trade financial instruments, including derivatives, for speculative purposes.

4.7.1 

Market risk

(i) 

Interest rate risk

Interest rate risk is the risk that a change in interest rates may negatively impact the Group’s cash flow or profitability because 

the Group’s borrowings reset directly in accordance with interest rate benchmarks or reset regularly to current rates influenced 

by interest rate benchmarks. The risk is managed by maintaining an appropriate mix between floating and fixed rate borrowings 

and through the use of approved derivatives to hedge the risk.

(ii) 

Foreign exchange risk

Foreign exchange risk is the risk that a change in foreign exchange rates may negatively impact the Group’s cash flow 

or profitability because the Group has an exposure to a foreign currency or has foreign currency denominated obligations. 

To hedge against the majority of this exposure, the Group uses approved derivatives to hedge up to 100% of the risk. 

The exposure to purchases of inventory in foreign currencies is primarily managed through forward exchange contracts 

and foreign currency options. These have been designated as cash flow hedges and the Group has established a 100% 

hedge relationship against the identified exposure.

To hedge the risk of adverse movements in foreign exchange rates in relation to borrowings denominated in foreign currency, 

the Group enters into cross currency swaps under which it agrees to exchange specified principal and interest foreign currency 

amounts at an agreed future date at a specified exchange rate. All foreign currency term borrowings are 100% hedged in this way.

Foreign currency exposures arising on translation of net investments in foreign subsidiaries are predominantly unhedged. 

4.7 

FINANCIAL RISK MANAGEMENT

4.7 

FINANCIAL RISK MANAGEMENT (CONTINUED)

4.7.1 

Market risk (continued)

(iii) 
At the reporting date, the fair value and notional amounts of derivatives entered into for hedging purposes for the Group are:

Hedging arrangements

NOTIONAL VALUE

FAIR VALUE ASSET

FAIR VALUE LIABILITY

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

123

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U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

2020
$M

2021
$M

2020
$M

Cash flow hedges
Forward exchange contracts
Foreign currency options

Cross currency swaps

US Senior Notes (US144A)
US Senior Notes (US144A)
European Medium Term Notes

Interest rate swaps

US Senior Notes (US144A)
US Senior Notes (US144A)
European Medium Term Notes

Fair value hedges
Interest rate swaps

2021
$M

 710 
 190 

 – 
 – 
 – 

 – 
 – 
 – 

 1,523 
 74 

 654 
 424 
 229 

 654 
 424 
 229 

Medium Term Notes (Green Bond)
Domestic Notes

 400 
 600 

 400 
 – 

Total

2021
$M

(19)
 – 

 – 
 – 
 – 
 – 

 – 
 – 
 – 
 – 

 – 
(7)
(7)
(26)

2020
$M

(53)
 – 

 – 
 – 
 – 
 – 

(9)
(20)
(2)
(31)

 – 
 – 
 – 
(84)

 2 
 1 

 – 
 – 
 – 
 – 

 – 
 – 
 – 
 – 

 13 
 10 
 23 
 26 

 7 
 2 

 248 
 229 
 42 
 519 

 – 
 – 
 – 
 – 

 20 
 – 
 20 
 548 

Forward exchange contracts and foreign currency options
At the reporting date, the net amount of unrealised losses under forward exchange contracts and foreign currency options 
hedging anticipated purchases of inventory and equipment is $16 million (2020: $44 million unrealised loss).

The hedge relationships are all assessed as highly effective with insignificant hedge ineffectiveness and the loss of $16 million 
has been recognised in the hedge reserve (2020: $44 million loss). 

The weighted average exchange rates hedged by outstanding forward exchange contracts and foreign currency options are 
AUD/USD: 0.73 (2020: 0.67) and AUD/EUR: 0.63 (2020: 0.60).

Cross currency swaps
At the reporting date, there were no cross currency swaps outstanding. All cross currency swaps were settled during the period 
matching the maturity of the underlying debt which was repaid during the period.

Interest rate swaps – cash flow hedges
At the reporting date, there were no interest rate swaps designated in a cash flow hedge relationship. All interest rate swaps 
previously designated in cash flow hedge relationships were settled during the period, matching the maturity of the underlying 
debt which was repaid during the period.

Interest rate swaps – fair value hedges
At the reporting date, interest rate swaps designated as fair value hedges have an unrealised gain of $16 million (2020: $20 million 
unrealised gain). These interest rate swaps are designated to be in a 100% hedge relationship against the identified exposure, 
and the movement in the unrealised gain of a $4 million loss has been recognised in the Consolidated Statement of Profit or Loss 
(2020: $11 million gain), offsetting the movement in the fair value of the hedged item. The weighted average interest rate hedged 
is BBSW + 1.20% (2020: BBSW + 1.20%).

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
A
T
O
N

I

 
 
 
 
 
 
 
 
 
124

Notes to the Consolidated Financial Statements

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

4.7 

FINANCIAL RISK MANAGEMENT (CONTINUED)

4.7 

FINANCIAL RISK MANAGEMENT (CONTINUED)

4.7.1 

Market risk (continued)

4.7.2 

Liquidity risk (continued)

(iv) 
The table below details the movements in the cash flow hedge reserve during the period:

Cash flow hedge reserve

Balance at start of period
Gain/(loss) arising on changes in fair value of hedging instruments entered into for cash flow hedges:

Forward exchange contracts and foreign currency options
Cross currency swaps
Interest rate swaps
Income tax related to gains/(losses) recognised in other comprehensive income

Transfers to initial carrying amount of hedged items:

Forward exchange contracts and foreign currency options
Income tax related to amounts transferred to initial carrying amount of hedged items

Balance at end of period

2021
$M

(38)

(23)
(19)
 31 
 3 
(8)

 46 
(13)
 33 
(13)

2020
$M

(29)

(46)
(3)
 47 
 1 
(1)

(13)
 5 
(8)
(38)

Sensitivity analysis

(v) 
At the reporting date, the Group’s exposure to interest rate risk, excluding debts that have been hedged, is not considered 
material. At the reporting date, the Group’s exposure to foreign currency risk after taking into consideration hedges of foreign 
currency payables, foreign currency borrowings, and forecast foreign currency transactions is not considered material.

(vi) 
The Group entered into a power purchase agreement (PPA) in May 2021 for a period of 10 years commencing January 2022. 

Power purchase agreement

The PPA is not a physical electricity supply contract but operates as a contract for difference where a strike price is agreed. 
If the electricity spot price is higher than the strike price, the counterparty will pay the difference to the Group. Similarly, if the 
electricity spot price is lower than the strike price, the Group will pay the difference to the counterparty. The PPA is classified 
as a derivative and is measured at fair value through profit or loss.

The fair value of the PPA at the execution date was nil. As the timing of the execution of the PPA was close to the end of the 
period, there has been no material change to the fair value of the PPA. The carrying value of the PPA at 27 June 2021 was nil.

Liquidity risk

4.7.2 
Liquidity risk is the risk that the Group may not have sufficient cash balances and access to funding sources to meet its 
cash obligations. This risk arises through the possibility that unusually large amounts may fall due for payment, there 
is an interruption to cash inflows due to technology incidents or banking system interruption, or there is an interruption 
to funding sources and markets.

The treasury policy approved by the Board has set an appropriate liquidity risk management framework for short, medium, 
and long-term funding requirements.

The Group maintains a minimum liquidity ratio, which the Treasury function monitors on a daily basis. It maintains a daily 
liquidity forecast over a 12-month rolling period in advance. The Group may decide to hold higher levels of liquidity from time 
to time in anticipation of expected requirements or events. To minimise refinancing risk, the Group maintains a diversity 
of funding sources and debt maturities. Upcoming maturities are included in the liquidity ratio calculation and must 
be covered by adequate liquidity to repay or refinance them.

At the reporting date, the Group has total undrawn committed facilities of $2,100 million (2020: $3,031 million) available. 

These facilities may be drawn at any time, subject to the terms of the lending agreements. Some facilities are subject 

to certain financial covenants and undertakings. No covenants have been breached during the period.

The following tables detail the Group’s undiscounted non-derivative liabilities and derivative assets and liabilities and their 

contractual maturities. The maturity profile of the Group’s undiscounted lease liabilities is included in Note 3.3.2.

MATURITY ANALYSIS OF FINANCIAL LIABILITIES

ONE YEAR OR 

ONE TO TWO 

TWO TO FIVE 

LESS

$M

YEARS

$M

YEARS

$M

OVER FIVE 

YEARS

$M

2021

Non‑derivative liabilities

Borrowings (floating)

Borrowings (fixed)

Trade and other payables 1

Derivative assets and liabilities

Net foreign exchange contracts

Net pay interest rate swaps 2

Put option over non-controlling interest

Total

2020

Non‑derivative liabilities

Borrowings (floating)

Borrowings (fixed)

Trade and other payables 1

Derivative assets and liabilities

Net foreign exchange contracts

Cross currency swaps pay floating

Cross currency swaps receive fixed/floating

Net pay interest rate swaps 2

Total

1 

2 

Excludes contract liabilities.

Interest rate swaps are net settled.

(6,278)

(383)

(1,133)

(9,569)

MATURITY ANALYSIS OF FINANCIAL LIABILITIES

ONE YEAR OR 

ONE TO TWO 

TWO TO FIVE 

LESS

$M

YEARS

$M

YEARS

$M

OVER FIVE 

YEARS

$M

(135)

(36)

(6,103)

(6,274)

(20)

 16 

 – 

(4)

(87)

(1,535)

(7,258)

(8,880)

(46)

(1,319)

 1,354 

(30)

(41)

(8,921)

(363)

(36)

 – 

(399)

 – 

 16 

 – 

 16 

(8)

(36)

 – 

(44)

 – 

 – 

 – 

 6 

 6 

(524)

(877)

 – 

(1,401)

 – 

 35 

(409)

(374)

(1,775)

(23)

(895)

 – 

(918)

 – 

 – 

 – 

 12 

 12 

TOTAL

$M

(1,526)

(1,616)

(6,103)

(9,245)

(20)

 105 

(409)

(324)

TOTAL

$M

(630)

(3,150)

(7,258)

(11,038)

(46)

(1,319)

 1,354 

(12)

(23)

(504)

(667)

 – 

(1,171)

 – 

 38 

 – 

 38 

(512)

(684)

 – 

(1,196)

 – 

 – 

 – 

 – 

 – 

(38)

(906)

(1,196)

(11,061)

For floating rate instruments, the amount disclosed is determined by reference to the interest rate at the last re-pricing date. 

Cash flows represented are contractual and calculated on an undiscounted basis, based on current rates at the reporting date.

125

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E

P

O

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T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

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L

5

O

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H

E

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I

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F

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A

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I

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124

Notes to the Consolidated Financial Statements

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

125

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4.7 

FINANCIAL RISK MANAGEMENT (CONTINUED)

4.7 

FINANCIAL RISK MANAGEMENT (CONTINUED)

4.7.1 

Market risk (continued)

(iv) 

Cash flow hedge reserve

The table below details the movements in the cash flow hedge reserve during the period:

Gain/(loss) arising on changes in fair value of hedging instruments entered into for cash flow hedges:

Forward exchange contracts and foreign currency options

Balance at start of period

Cross currency swaps

Interest rate swaps

Income tax related to gains/(losses) recognised in other comprehensive income

Transfers to initial carrying amount of hedged items:

Forward exchange contracts and foreign currency options

Income tax related to amounts transferred to initial carrying amount of hedged items

2021

$M

(38)

(23)

(19)

 31 

 3 

(8)

 46 

(13)

 33 

(13)

2020

$M

(29)

(46)

(3)

 47 

 1 

(1)

(13)

 5 

(8)

(38)

Balance at end of period

(v) 

Sensitivity analysis

At the reporting date, the Group’s exposure to interest rate risk, excluding debts that have been hedged, is not considered 

material. At the reporting date, the Group’s exposure to foreign currency risk after taking into consideration hedges of foreign 

currency payables, foreign currency borrowings, and forecast foreign currency transactions is not considered material.

(vi) 

Power purchase agreement

The Group entered into a power purchase agreement (PPA) in May 2021 for a period of 10 years commencing January 2022. 

The PPA is not a physical electricity supply contract but operates as a contract for difference where a strike price is agreed. 

If the electricity spot price is higher than the strike price, the counterparty will pay the difference to the Group. Similarly, if the 

electricity spot price is lower than the strike price, the Group will pay the difference to the counterparty. The PPA is classified 

as a derivative and is measured at fair value through profit or loss.

The fair value of the PPA at the execution date was nil. As the timing of the execution of the PPA was close to the end of the 

period, there has been no material change to the fair value of the PPA. The carrying value of the PPA at 27 June 2021 was nil.

4.7.2 

Liquidity risk

Liquidity risk is the risk that the Group may not have sufficient cash balances and access to funding sources to meet its 

cash obligations. This risk arises through the possibility that unusually large amounts may fall due for payment, there 

is an interruption to cash inflows due to technology incidents or banking system interruption, or there is an interruption 

to funding sources and markets.

and long-term funding requirements.

The treasury policy approved by the Board has set an appropriate liquidity risk management framework for short, medium, 

The Group maintains a minimum liquidity ratio, which the Treasury function monitors on a daily basis. It maintains a daily 

liquidity forecast over a 12-month rolling period in advance. The Group may decide to hold higher levels of liquidity from time 

to time in anticipation of expected requirements or events. To minimise refinancing risk, the Group maintains a diversity 

of funding sources and debt maturities. Upcoming maturities are included in the liquidity ratio calculation and must 

be covered by adequate liquidity to repay or refinance them.

Liquidity risk (continued)

4.7.2 
At the reporting date, the Group has total undrawn committed facilities of $2,100 million (2020: $3,031 million) available. 
These facilities may be drawn at any time, subject to the terms of the lending agreements. Some facilities are subject 
to certain financial covenants and undertakings. No covenants have been breached during the period.

The following tables detail the Group’s undiscounted non-derivative liabilities and derivative assets and liabilities and their 
contractual maturities. The maturity profile of the Group’s undiscounted lease liabilities is included in Note 3.3.2.

2021
Non‑derivative liabilities
Borrowings (floating)
Borrowings (fixed)
Trade and other payables 1

Derivative assets and liabilities
Net foreign exchange contracts
Net pay interest rate swaps 2
Put option over non-controlling interest

Total

2020
Non‑derivative liabilities
Borrowings (floating)
Borrowings (fixed)
Trade and other payables 1

Derivative assets and liabilities
Net foreign exchange contracts
Cross currency swaps pay floating
Cross currency swaps receive fixed/floating
Net pay interest rate swaps 2

Total

1 
2 

Excludes contract liabilities.
Interest rate swaps are net settled.

MATURITY ANALYSIS OF FINANCIAL LIABILITIES

ONE YEAR OR 
LESS
$M

ONE TO TWO 
YEARS
$M

TWO TO FIVE 
YEARS
$M

OVER FIVE 
YEARS
$M

(135)
(36)
(6,103)
(6,274)

(20)
 16 
 – 
(4)
(6,278)

(363)
(36)
 – 
(399)

 – 
 16 
 – 
 16 
(383)

(524)
(877)
 – 
(1,401)

 – 
 35 
(409)
(374)
(1,775)

(504)
(667)
 – 
(1,171)

 – 
 38 
 – 
 38 
(1,133)

MATURITY ANALYSIS OF FINANCIAL LIABILITIES

ONE YEAR OR 
LESS
$M

ONE TO TWO 
YEARS
$M

TWO TO FIVE 
YEARS
$M

OVER FIVE 
YEARS
$M

(87)
(1,535)
(7,258)
(8,880)

(46)
(1,319)
 1,354 
(30)
(41)
(8,921)

(8)
(36)
 – 
(44)

 – 
 – 
 – 
 6 
 6 
(38)

(23)
(895)
 – 
(918)

 – 
 – 
 – 
 12 
 12 
(906)

(512)
(684)
 – 
(1,196)

 – 
 – 
 – 
 – 
 – 
(1,196)

TOTAL
$M

(1,526)
(1,616)
(6,103)
(9,245)

(20)
 105 
(409)
(324)
(9,569)

TOTAL
$M

(630)
(3,150)
(7,258)
(11,038)

(46)
(1,319)
 1,354 
(12)
(23)
(11,061)

For floating rate instruments, the amount disclosed is determined by reference to the interest rate at the last re-pricing date. 
Cash flows represented are contractual and calculated on an undiscounted basis, based on current rates at the reporting date.

1

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126

Notes to the Consolidated Financial Statements

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

4.7 

FINANCIAL RISK MANAGEMENT (CONTINUED)

4.7 

FINANCIAL RISK MANAGEMENT (CONTINUED)

Credit risk

4.7.3 
Credit risk is the risk that counterparties who may be required to pay monies to the Group may fail and therefore not be able 
to make those payments.

Under the treasury policy approved by the Board, the Group can only invest short-term surplus funds or execute derivatives 
with approved counterparty banks and financial institutions that are rated BBB+ or higher by Standard & Poor’s (or equivalent 
with other rating agencies).

The recognised financial assets of the Group include amounts receivable arising from unrealised gains on derivatives. 
For derivatives which are deliverable, credit risk may also arise from the potential failure of the counterparties to meet their 
obligations under the respective contracts at maturity.

At the reporting date, no material credit risk exposure existed in relation to potential counterparty failure on such financial 
instruments (2020: nil). Other than the loss allowance recognised in relation to trade and other receivables in Note 3.1, 
no financial assets were impaired or past due.

Fair value measurement of financial instruments

4.7.4 
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 provides 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). 

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).

Listed equity securities
Forward exchange contracts and foreign 
currency options
Cross currency and interest rate swaps
Convertible and SAFE notes
Unlisted equity securities
Put option over non-controlling interest

NOTE

3.2

4.7.1
4.7.1
3.2
3.2
3.2

FAIR VALUE ASSET

FAIR VALUE LIABILITY

2021
$M

 – 

 3 
 23 
 62 
 33 
 – 

2020
$M

 84 

 9 
 539 
 45 
 10 
 – 

2021
$M

 – 

(19)
(7)
 – 
 – 
(390)

2020
$M

 – 

(53)
(31)
 – 
 – 
 – 

FAIR VALUE 
HIERARCHY

Level 1

Level 2
Level 2
Level 2
Level 3
Level 3

There were no transfers between level 1, level 2, or level 3 during the period. 

Fair value of financial assets and financial liabilities that are not measured at fair value on a recurring basis
The carrying value of cash and cash equivalents, financial assets, bank and other loans, and non-interest bearing monetary 
financial liabilities of the Group approximate their fair value.

Estimation of fair values
At each reporting period, the Group reviews any material adjustments for level 3 fair values and assesses whether any evidence 
can be obtained from third parties to support the conclusion that these valuations meet the requirements of the Standards, 
including the level in the fair value hierarchy in which the valuations should be classified. Any material valuation adjustments 
are reported to the Board.

The following summarises the major methods and assumptions used in estimating the fair values of financial instruments 
categorised within level 2 and level 3 of the fair value hierarchy:

•  The fair value of foreign exchange contracts is determined using a discounted cash flow model where 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;

•  The fair value of foreign currency options is determined using a Black-Scholes model; 

127

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A

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4.7.4 

Fair value measurement of financial instruments (continued)

Estimation of fair values (continued)

•  The fair value of cross currency and interest rate swaps is determined using a discounted cash flow model where future cash 

flows are estimated based on market forward rates as at the end of the reporting period and the contract rates, discounted 

at a rate that reflects the credit risk of the various respective counterparties; 

•  The fair value of convertible notes is determined using a Black-Scholes model or a Monte Carlo simulation model;

•  The fair value of unlisted equity securities is determined using the pricing from the latest external fundraising of the unlisted 

entity which represents the current market value of the investment or, where this is not available, using an appropriate 

model such as a discounted cash flow model based on estimated future cash flows, discounted at a rate that reflects the 

relative risks of the investment; and

•  The fair value of the put option over non-controlling interests is determined as the present value of the amount expected 

to be paid at the time of exercise, discounted at the Group’s cost of debt.

Level 3 sensitivity analysis

Put option over non-controlling interest

For the fair value of the put option over non-controlling interest, reasonably possible changes at the reporting date to one of the 

significant unobservable inputs, holding other inputs constant, would have resulted in the following valuations:

2021 ($M)

CHANGE IN EBITDA 

MARGIN GROWTH

‑2%

‑1%

0%

+1%

+2%

‑2%

337

345

353

360

368

CHANGE IN REVENUE GROWTH

‑1%

356

364

372

380

388

0%

375

383

390

400

408

+1%

395

403

412

420

429

+2%

416

424

433

442

451

Unlisted equity securities

change in the value of unlisted equity securities.

Reasonably possible changes at the reporting date to significant unobservable inputs would not have resulted in a material 

SIGNIFICANT ACCOUNTING POLICIES 

Derivatives are initially recognised at fair value. Subsequently, at each reporting date, the derivative is remeasured 

at fair value and the gain or loss on remeasurement is recognised in the Consolidated Statement of Profit or Loss, 

unless the derivatives are designated as the hedging instrument in a cash flow hedge where the gain or loss 

is recognised in other comprehensive income. A derivative is presented as a non-current asset or a non-current 

liability if the remaining maturity of the instrument is more than 12 months and it is not due to be realised or settled 

Derivatives

within 12 months.

Cash flow hedge

A cash flow hedge is a hedge of an exposure to variability in cash flows that is attributable to a particular risk 

associated with a recognised asset or liability or a highly probable forecast transaction that could affect profit or loss. 

Where a derivative is designated as the hedging instrument in a cash flow hedge, the effective part of any gain 

or loss on the derivative is recognised in other comprehensive income and accumulated in a separate cash flow 

hedge reserve within equity.

 
 
 
 
 
 
 
 
 
126

Notes to the Consolidated Financial Statements

CAPITAL STRUCTURE, FINANCING, 

AND RISK MANAGEMENT 4

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4.7 

FINANCIAL RISK MANAGEMENT (CONTINUED)

4.7 

FINANCIAL RISK MANAGEMENT (CONTINUED)

4.7.3 

Credit risk

to make those payments.

with other rating agencies).

Credit risk is the risk that counterparties who may be required to pay monies to the Group may fail and therefore not be able 

Under the treasury policy approved by the Board, the Group can only invest short-term surplus funds or execute derivatives 

with approved counterparty banks and financial institutions that are rated BBB+ or higher by Standard & Poor’s (or equivalent 

The recognised financial assets of the Group include amounts receivable arising from unrealised gains on derivatives. 

For derivatives which are deliverable, credit risk may also arise from the potential failure of the counterparties to meet their 

obligations under the respective contracts at maturity.

At the reporting date, no material credit risk exposure existed in relation to potential counterparty failure on such financial 

instruments (2020: nil). Other than the loss allowance recognised in relation to trade and other receivables in Note 3.1, 

no financial assets were impaired or past due.

4.7.4 

Fair value measurement of financial instruments

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 provides 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). 

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).

Listed equity securities

Forward exchange contracts and foreign 

currency options

Cross currency and interest rate swaps

Convertible and SAFE notes

Unlisted equity securities

Put option over non-controlling interest

NOTE

3.2

4.7.1

4.7.1

3.2

3.2

3.2

FAIR VALUE ASSET

FAIR VALUE LIABILITY

2021

$M

 – 

 3 

 23 

 62 

 33 

 – 

2020

$M

 84 

 9 

 539 

 45 

 10 

 – 

2021

$M

 – 

(19)

(7)

 – 

 – 

(390)

2020

$M

 – 

(53)

(31)

 – 

 – 

 – 

FAIR VALUE 

HIERARCHY

Level 1

Level 2

Level 2

Level 2

Level 3

Level 3

There were no transfers between level 1, level 2, or level 3 during the period. 

Fair value of financial assets and financial liabilities that are not measured at fair value on a recurring basis

The carrying value of cash and cash equivalents, financial assets, bank and other loans, and non-interest bearing monetary 

financial liabilities of the Group approximate their fair value.

Estimation of fair values

are reported to the Board.

At each reporting period, the Group reviews any material adjustments for level 3 fair values and assesses whether any evidence 

can be obtained from third parties to support the conclusion that these valuations meet the requirements of the Standards, 

including the level in the fair value hierarchy in which the valuations should be classified. Any material valuation adjustments 

The following summarises the major methods and assumptions used in estimating the fair values of financial instruments 

categorised within level 2 and level 3 of the fair value hierarchy:

•  The fair value of foreign exchange contracts is determined using a discounted cash flow model where 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;

•  The fair value of foreign currency options is determined using a Black-Scholes model; 

4.7.4 

Fair value measurement of financial instruments (continued)

Estimation of fair values (continued)
•  The fair value of cross currency and interest rate swaps is determined using a discounted cash flow model where future cash 
flows are estimated based on market forward rates as at the end of the reporting period and the contract rates, discounted 
at a rate that reflects the credit risk of the various respective counterparties; 

•  The fair value of convertible notes is determined using a Black-Scholes model or a Monte Carlo simulation model;

•  The fair value of unlisted equity securities is determined using the pricing from the latest external fundraising of the unlisted 
entity which represents the current market value of the investment or, where this is not available, using an appropriate 
model such as a discounted cash flow model based on estimated future cash flows, discounted at a rate that reflects the 
relative risks of the investment; and

•  The fair value of the put option over non-controlling interests is determined as the present value of the amount expected 

to be paid at the time of exercise, discounted at the Group’s cost of debt.

Level 3 sensitivity analysis
Put option over non-controlling interest
For the fair value of the put option over non-controlling interest, reasonably possible changes at the reporting date to one of the 
significant unobservable inputs, holding other inputs constant, would have resulted in the following valuations:

2021 ($M)

CHANGE IN EBITDA 
MARGIN GROWTH

‑2%

‑1%

0%

+1%

+2%

‑2%

337
345
353
360
368

CHANGE IN REVENUE GROWTH

‑1%

356
364
372
380
388

0%

375
383
390
400
408

+1%

395
403
412
420
429

+2%

416
424
433
442
451

Unlisted equity securities
Reasonably possible changes at the reporting date to significant unobservable inputs would not have resulted in a material 
change in the value of unlisted equity securities.

SIGNIFICANT ACCOUNTING POLICIES 

Derivatives

Derivatives are initially recognised at fair value. Subsequently, at each reporting date, the derivative is remeasured 
at fair value and the gain or loss on remeasurement is recognised in the Consolidated Statement of Profit or Loss, 
unless the derivatives are designated as the hedging instrument in a cash flow hedge where the gain or loss 
is recognised in other comprehensive income. A derivative is presented as a non-current asset or a non-current 
liability if the remaining maturity of the instrument is more than 12 months and it is not due to be realised or settled 
within 12 months.

Cash flow hedge

A cash flow hedge is a hedge of an exposure to variability in cash flows that is attributable to a particular risk 
associated with a recognised asset or liability or a highly probable forecast transaction that could affect profit or loss. 

Where a derivative is designated as the hedging instrument in a cash flow hedge, the effective part of any gain 
or loss on the derivative is recognised in other comprehensive income and accumulated in a separate cash flow 
hedge reserve within equity.

1

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3

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4

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128

Notes to the Consolidated Financial Statements

4.7 

FINANCIAL RISK MANAGEMENT (CONTINUED)

5 GROUP STRUCTURE

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

5.1 

ACQUISITION OF SUBSIDIARY

Cash flow hedge (continued)

When the forecast transaction subsequently results in the recognition of a non-financial asset or non-financial 
liability, the associated cumulative gain or loss is removed from equity and included in the initial cost or other 
carrying amount of the non-financial asset or liability. If the forecast transaction subsequently results in the 
recognition of a financial asset or a financial liability, then the associated gains and losses that were accumulated 
in equity will be reclassified into profit or loss in the same period or periods during which the asset acquired 
or liability assumed affects profit or loss. The ineffective part of any derivative designated as the hedging 
instrument in a cash flow hedge is recognised immediately in the Consolidated Statement of Profit or Loss.

When a hedging instrument expires or is sold, terminated, or exercised, but the hedged forecast transaction is still 
expected to occur, the cumulative gain or loss at that point remains in equity and is recognised in accordance 
with the above policy when the transaction occurs. If the hedged transaction is no longer expected to take place, 
the cumulative unrealised gain or loss accumulated in equity is reclassified immediately into the Consolidated 
Statement of Profit or Loss. Gains or losses removed from equity during the period in relation to interest rate 
hedge instruments are recognised within finance costs in the Consolidated Statement of Profit or Loss.

Fair value hedge

A fair value hedge is a hedge of an exposure to changes in fair value of a recognised asset or liability that 
is attributable to a particular risk and could affect profit or loss. Where a derivative is designated as the hedging 
instrument in a fair value hedge, the gain or loss on the hedging instrument is recognised in the Consolidated 
Statement of Profit or Loss, together with the gain or loss on the hedged item attributable to the hedged risk, 
in the line item relating to the hedged item. 

Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging 
instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. 
The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortised 
in the Consolidated Statement of Profit or Loss from that date. 

This section presents information about material acquisitions that occurred during the period, including 

the assets acquired and liabilities assumed, consideration transferred, and goodwill arising from the 

acquisition. During the period, the Group acquired a controlling interest in Quantium.

On 31 May 2021, the Group acquired an additional equity interest in The Quantium Group Holdings Pty Limited (Quantium) 

which increased its shareholding from 47% to 75%, resulting in the Group gaining control of Quantium, for a total cash 

consideration of $223 million. In addition, Quantium minority shareholders have a put option and the Group has an equivalent 

call option over the remaining 25% of the shares in Quantium, both of which are expected to be exercised after 30 June 2024. 

Quantium is a world-class data science and advanced analytics business. Through this transaction the Group aspires 

to bring together Quantium’s advanced analytics capability and the Group’s retail capabilities to unlock value across the 

Group’s retail ecosystem.

From the date of acquisition, Quantium’s contribution to revenue and earnings before interest and tax was not material. 

If the acquisition had occurred at the start of the reporting period, management estimates that consolidated revenue and 

consolidated earnings before interest and tax would not have been materially different to what has been reported.

5.1.1 

Identifiable assets acquired and liabilities assumed

The following table summarises the recognised amounts of assets acquired and liabilities assumed at the date of acquisition:

4.8 

COMMITMENTS FOR CAPITAL EXPENDITURE

This section presents the Group’s contractual obligation to make a payment in the future in relation 
to purchases of property, plant and equipment.

Capital expenditure commitments of the Group at the reporting date are as follows:

Total identifiable net assets acquired

Estimated capital expenditure under firm contracts, payable:
Not later than one year
Later than one year, not later than two years
Total capital expenditure commitments1

2021
$M

 791 
 46 
 837 

2020
$M

 429 
 – 
 429 

1 

Included within the capital expenditure commitments of the Group are $14 million (2020: $18 million) of capital expenditure commitments related to 
Endeavour Group which has been classified as a discontinued operation at 27 June 2021. The Endeavour Group capital expenditure commitments are 
estimated to be all payable in not later than one year (2020: all payable in not later than one year).

1  Trade and other receivables comprise gross contractual amounts due of $58 million, of which nil was expected to be uncollectable at the date of acquisition.

Assets

Cash and cash equivalents

Trade and other receivables 1

Lease assets

Property, plant and equipment

Intangible assets

Deferred tax assets

Total assets

Liabilities

Trade and other payables

Lease liabilities

Current tax payable

Provisions

Deferred tax liabilities

Total liabilities

GROUP

STRUCTURE 5

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2

1

W

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1

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A

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2

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3

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4

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$M

 54 

 58 

 110 

 3 

 191 

11

427

 57 

 110 

 7 

 18 

53

245

 182 

 
 
 
 
 
 
 
 
 
128

Notes to the Consolidated Financial Statements

4.7 

FINANCIAL RISK MANAGEMENT (CONTINUED)

5 GROUP STRUCTURE

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

5.1 

ACQUISITION OF SUBSIDIARY

GROUP

STRUCTURE 5

129

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Cash flow hedge (continued)

When the forecast transaction subsequently results in the recognition of a non-financial asset or non-financial 

liability, the associated cumulative gain or loss is removed from equity and included in the initial cost or other 

carrying amount of the non-financial asset or liability. If the forecast transaction subsequently results in the 

recognition of a financial asset or a financial liability, then the associated gains and losses that were accumulated 

in equity will be reclassified into profit or loss in the same period or periods during which the asset acquired 

or liability assumed affects profit or loss. The ineffective part of any derivative designated as the hedging 

instrument in a cash flow hedge is recognised immediately in the Consolidated Statement of Profit or Loss.

When a hedging instrument expires or is sold, terminated, or exercised, but the hedged forecast transaction is still 

expected to occur, the cumulative gain or loss at that point remains in equity and is recognised in accordance 

with the above policy when the transaction occurs. If the hedged transaction is no longer expected to take place, 

the cumulative unrealised gain or loss accumulated in equity is reclassified immediately into the Consolidated 

Statement of Profit or Loss. Gains or losses removed from equity during the period in relation to interest rate 

hedge instruments are recognised within finance costs in the Consolidated Statement of Profit or Loss.

Fair value hedge

A fair value hedge is a hedge of an exposure to changes in fair value of a recognised asset or liability that 

is attributable to a particular risk and could affect profit or loss. Where a derivative is designated as the hedging 

instrument in a fair value hedge, the gain or loss on the hedging instrument is recognised in the Consolidated 

Statement of Profit or Loss, together with the gain or loss on the hedged item attributable to the hedged risk, 

in the line item relating to the hedged item. 

Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging 

instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. 

The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortised 

in the Consolidated Statement of Profit or Loss from that date. 

4.8 

COMMITMENTS FOR CAPITAL EXPENDITURE

This section presents the Group’s contractual obligation to make a payment in the future in relation 

to purchases of property, plant and equipment.

Capital expenditure commitments of the Group at the reporting date are as follows:

Estimated capital expenditure under firm contracts, payable:

Not later than one year

Later than one year, not later than two years

Total capital expenditure commitments1

1 

Included within the capital expenditure commitments of the Group are $14 million (2020: $18 million) of capital expenditure commitments related to 

Endeavour Group which has been classified as a discontinued operation at 27 June 2021. The Endeavour Group capital expenditure commitments are 

estimated to be all payable in not later than one year (2020: all payable in not later than one year).

2021

$M

 791 

 46 

 837 

2020

$M

 429 

 – 

 429 

This section presents information about material acquisitions that occurred during the period, including 
the assets acquired and liabilities assumed, consideration transferred, and goodwill arising from the 
acquisition. During the period, the Group acquired a controlling interest in Quantium.

On 31 May 2021, the Group acquired an additional equity interest in The Quantium Group Holdings Pty Limited (Quantium) 
which increased its shareholding from 47% to 75%, resulting in the Group gaining control of Quantium, for a total cash 
consideration of $223 million. In addition, Quantium minority shareholders have a put option and the Group has an equivalent 
call option over the remaining 25% of the shares in Quantium, both of which are expected to be exercised after 30 June 2024. 

Quantium is a world-class data science and advanced analytics business. Through this transaction the Group aspires 
to bring together Quantium’s advanced analytics capability and the Group’s retail capabilities to unlock value across the 
Group’s retail ecosystem.

From the date of acquisition, Quantium’s contribution to revenue and earnings before interest and tax was not material. 
If the acquisition had occurred at the start of the reporting period, management estimates that consolidated revenue and 
consolidated earnings before interest and tax would not have been materially different to what has been reported.

Identifiable assets acquired and liabilities assumed

5.1.1 
The following table summarises the recognised amounts of assets acquired and liabilities assumed at the date of acquisition:

Assets
Cash and cash equivalents
Trade and other receivables 1
Lease assets
Property, plant and equipment
Intangible assets
Deferred tax assets
Total assets
Liabilities
Trade and other payables
Lease liabilities
Current tax payable
Provisions
Deferred tax liabilities
Total liabilities
Total identifiable net assets acquired

$M

 54 
 58 
 110 
 3 
 191 
11
427

 57 
 110 
 7 
 18 
53
245
 182 

1  Trade and other receivables comprise gross contractual amounts due of $58 million, of which nil was expected to be uncollectable at the date of acquisition.

1

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130

Notes to the Consolidated Financial Statements

GROUP

STRUCTURE 5

5.1 

ACQUISITION OF SUBSIDIARY (CONTINUED)

5.1 

ACQUISITION OF SUBSIDIARY (CONTINUED)

5.1.1 

Identifiable assets acquired and liabilities assumed (continued)

Fair values measured on a provisional basis

(i) 
The fair value of Quantium’s intangible assets (including customer relationships, brand names, and intellectual property and 
algorithms) has been measured provisionally, pending completion of an independent valuation.

If new information obtained within one year of the date of acquisition about facts and circumstances that existed at the 
date of acquisition identifies adjustments to the amounts recognised, or any additional provisions that existed at the date 
of acquisition, then the accounting for the acquisition will be revised.

Goodwill

5.1.2 
Goodwill arising from the acquisition has been recognised as follows:

Consideration transferred
Non-controlling interest 1
Fair value of pre-existing interest in Quantium
Fair value of identifiable net assets acquired
Goodwill

$M

 223 
 56 
 291 
(182)
 388 

1  Based on the non-controlling interest’s proportion of the fair value of identifiable net assets of Quantium and the non-controlling interest in entities controlled 

by Quantium.

The remeasurement to fair value of the Group’s existing 47% interest in Quantium resulted in a gain of $228 million. 
This represents the difference between the fair value of the Group’s existing 47% interest ($291 million) and the amount 
recognised in the Consolidated Statement of Financial Position prior to this acquisition ($63 million). This gain has been included 
in administration expenses in the Consolidated Statement of Profit or Loss.

The goodwill is attributable mainly to the skills and technical talent of Quantium’s workforce, the benefits from integrating 
Quantium into the Group’s retail ecosystem, and intangible assets that do not qualify for separate recognition. None of the 
goodwill recognised is expected to be deductible for tax purposes.

Put option

5.1.3 
The Group has a put option liability over the remaining 25% of the shares in Quantium, which is expected to be exercised 
after 30 June 2024. Notwithstanding that the most likely outcome is that the put option will be exercised after 30 June 2024, 
minority shareholders can require the Group to purchase their shares at the put option valuation at the date of exercise. 
For employee shareholders leaving Quantium or employees classified as bad leavers, their shares are required to be acquired 
at a discount and for other shareholders at no discount.  As the Group is not able to defer payment for more than 12 months, 
the Group is required to recognise this portion as a current liability.

The put option liability was initially recognised at the present value of the amount expected to be paid at the time of exercise 
within other financial liabilities with a corresponding charge directly to equity. At 27 June 2021, the carrying value of the put 
option liability was $390 million, of which $145 million has been recognised as a current financial liability and $245 million has 
been recognised as a non-current financial liability (refer to Note 3.2).

In each reporting period, the discount on the put option liability is subsequently unwound up to the amount expected to be paid 
at the time of exercise through finance costs in the Consolidated Statement of Profit or Loss.

Any changes in the estimate of the amount expected to be paid at the time of exercise will be recognised in the Consolidated 
Statement of Profit or Loss.

SIGNIFICANT ACCOUNTING POLICIES 

Business combinations

The Group accounts for acquisitions of businesses using the acquisition method. The consideration transferred 

in a business combination is measured at fair value, as are the identifiable net assets acquired. Goodwill is 

measured as the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree, 

and the fair value of the Group’s previously held equity interest in the acquiree less the identifiable assets 

acquired and liabilities assumed. Any goodwill that arises is tested annually for impairment in accordance with 

the policy adopted for non-financial assets in Note 3.6. Transaction costs are expensed as incurred, except 

if related to the issue of debt or equity securities.

Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent 

consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured 

and settlement is accounted for within equity. Other contingent consideration is remeasured at fair value at each 

reporting date and subsequent changes in the fair value of the contingent consideration are recognised in the 

Consolidated Statement of Profit or Loss.

When a business combination is achieved in stages, the Group’s previously held interest in the acquired entity 

is remeasured to its acquisition date fair value. The resulting gain or loss is recognised in the Consolidated 

Statement of Profit or Loss. Amounts arising from interests in the acquiree prior to the acquisition date that 

have previously been recognised in the Consolidated Statement of Other Comprehensive Income are reclassified 

to the Consolidated Statement of Profit or Loss, where such treatment would be appropriate if that interest were 

disposed of.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the 

combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. 

Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are 

recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition 

date that, if known, would have affected the amounts recognised as of that date.

131

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2

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5.1 

ACQUISITION OF SUBSIDIARY (CONTINUED)

5.1 

ACQUISITION OF SUBSIDIARY (CONTINUED)

GROUP

STRUCTURE 5

131

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0
2
1

W
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SIGNIFICANT ACCOUNTING POLICIES 

Business combinations

The Group accounts for acquisitions of businesses using the acquisition method. The consideration transferred 
in a business combination is measured at fair value, as are the identifiable net assets acquired. Goodwill is 
measured as the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree, 
and the fair value of the Group’s previously held equity interest in the acquiree less the identifiable assets 
acquired and liabilities assumed. Any goodwill that arises is tested annually for impairment in accordance with 
the policy adopted for non-financial assets in Note 3.6. Transaction costs are expensed as incurred, except 
if related to the issue of debt or equity securities.

Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent 
consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured 
and settlement is accounted for within equity. Other contingent consideration is remeasured at fair value at each 
reporting date and subsequent changes in the fair value of the contingent consideration are recognised in the 
Consolidated Statement of Profit or Loss.

When a business combination is achieved in stages, the Group’s previously held interest in the acquired entity 
is remeasured to its acquisition date fair value. The resulting gain or loss is recognised in the Consolidated 
Statement of Profit or Loss. Amounts arising from interests in the acquiree prior to the acquisition date that 
have previously been recognised in the Consolidated Statement of Other Comprehensive Income are reclassified 
to the Consolidated Statement of Profit or Loss, where such treatment would be appropriate if that interest were 
disposed of.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the 
combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. 
Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are 
recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition 
date that, if known, would have affected the amounts recognised as of that date.

1

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130

Notes to the Consolidated Financial Statements

5.1.1 

Identifiable assets acquired and liabilities assumed (continued)

(i) 

Fair values measured on a provisional basis

The fair value of Quantium’s intangible assets (including customer relationships, brand names, and intellectual property and 

algorithms) has been measured provisionally, pending completion of an independent valuation.

If new information obtained within one year of the date of acquisition about facts and circumstances that existed at the 

date of acquisition identifies adjustments to the amounts recognised, or any additional provisions that existed at the date 

of acquisition, then the accounting for the acquisition will be revised.

5.1.2 

Goodwill

Goodwill arising from the acquisition has been recognised as follows:

$M

 223 

 56 

 291 

(182)

 388 

Consideration transferred

Non-controlling interest 1

Fair value of pre-existing interest in Quantium

Fair value of identifiable net assets acquired

Goodwill

by Quantium.

1  Based on the non-controlling interest’s proportion of the fair value of identifiable net assets of Quantium and the non-controlling interest in entities controlled 

The remeasurement to fair value of the Group’s existing 47% interest in Quantium resulted in a gain of $228 million. 

This represents the difference between the fair value of the Group’s existing 47% interest ($291 million) and the amount 

recognised in the Consolidated Statement of Financial Position prior to this acquisition ($63 million). This gain has been included 

in administration expenses in the Consolidated Statement of Profit or Loss.

The goodwill is attributable mainly to the skills and technical talent of Quantium’s workforce, the benefits from integrating 

Quantium into the Group’s retail ecosystem, and intangible assets that do not qualify for separate recognition. None of the 

goodwill recognised is expected to be deductible for tax purposes.

5.1.3 

Put option

The Group has a put option liability over the remaining 25% of the shares in Quantium, which is expected to be exercised 

after 30 June 2024. Notwithstanding that the most likely outcome is that the put option will be exercised after 30 June 2024, 

minority shareholders can require the Group to purchase their shares at the put option valuation at the date of exercise. 

For employee shareholders leaving Quantium or employees classified as bad leavers, their shares are required to be acquired 

at a discount and for other shareholders at no discount.  As the Group is not able to defer payment for more than 12 months, 

the Group is required to recognise this portion as a current liability.

The put option liability was initially recognised at the present value of the amount expected to be paid at the time of exercise 

within other financial liabilities with a corresponding charge directly to equity. At 27 June 2021, the carrying value of the put 

option liability was $390 million, of which $145 million has been recognised as a current financial liability and $245 million has 

been recognised as a non-current financial liability (refer to Note 3.2).

In each reporting period, the discount on the put option liability is subsequently unwound up to the amount expected to be paid 

at the time of exercise through finance costs in the Consolidated Statement of Profit or Loss.

Any changes in the estimate of the amount expected to be paid at the time of exercise will be recognised in the Consolidated 

Statement of Profit or Loss.

5

I

N
F
O
R
M
A
T
O
N

I

O
T
H
E
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132

Notes to the Consolidated Financial Statements

GROUP

STRUCTURE 5

5.2 

DISCONTINUED OPERATIONS

5.2 

DISCONTINUED OPERATIONS (CONTINUED)

This section presents the profit or loss and cash flows from components of the Group that are currently 
held for distribution. On 18 June 2021, the Group obtained shareholder approval for the separation 
of Endeavour Group resulting in the discontinued operations of two separate major business lines, 
Endeavour Drinks and Hotels.

Endeavour Group Separation
On 18 June 2021, the Group obtained shareholder approval for the separation of Endeavour Group, which resulted in two of 
the Group’s separate major business lines, Endeavour Drinks and Hotels, being classified as discontinued operations. On this 
date, the Group classified the respective assets and liabilities of Endeavour Group as held for distribution and presented these 
amounts at their carrying value and separately from other assets and liabilities in the Consolidated Statement of Financial 
Position as at 27 June 2021. Refer to Note 5.3 for further details. 

Segment disclosures from discontinued operations

5.2.1 
The Group’s reportable segments from discontinued operations are as follows:

•  Endeavour Drinks – procurement and manufacture of drinks for resale to customers in Australia;

•  Hotels – provision of leisure and hospitality services including food and drinks, accommodation, entertainment, and gaming 

in Australia; and

•  Other – consists of various support functions for Endeavour Group.

The primary reporting measure of the reportable segments is earnings before interest, tax, and significant items which is consistent 
with the way management monitor and report the performance of these segments.

2021
Revenue from the sale of goods and services
Other revenue
Expenses
Earnings/(loss) before interest, tax, and significant items
Significant items
Earnings/(loss) before interest and tax
Finance costs 1
Profit before income tax
Income tax expense
Profit for the period from discontinued operations
Depreciation and amortisation – lease assets
Depreciation and amortisation – non‑lease assets
Capital expenditure

ENDEAVOUR 
DRINKS
 $M 

 10,167 
 5 
(9,503)
 669 
 – 
 669 

HOTELS
 $M 

 1,417 
 24 
(1,180)
 261 
 – 
 261 

OTHER
 $M 

 – 
 4 
(35)
(31)
 – 
(31)

 146 
 145 
 151 

 137 
 101 
 149 

 – 
 – 
 3 

TOTAL
 $M 

 11,584 
 33 
(10,718)
 899 
 – 
 899 
(159)
 740 
(207)
 533 
 283 
 246 
 303 

1 

Finance costs from discontinued operations is presented after consolidation eliminations and therefore excludes any interest arising on intercompany 
amounts owed by Endeavour Group.

5.2.1 

Segment disclosures from discontinued operations (continued)

Revenue from the sale of goods and services

2020

Other revenue

Expenses

Significant items

Earnings/(loss) before interest, tax, and significant items

Earnings/(loss) before interest and tax

Finance costs 1

Profit before income tax

Income tax expense

Profit for the period from discontinued operations

Depreciation and amortisation – lease assets

Depreciation and amortisation – non‑lease assets

Capital expenditure

ENDEAVOUR 

DRINKS

 $M 

 9,275 

 4 

(8,710)

 569 

 – 

 569 

HOTELS

 $M 

 1,320 

 23 

(1,171)

 172 

 – 

 172 

OTHER

 $M 

 – 

 – 

(7)

(7)

(132)

(139)

 138 

 119 

 169 

 131 

 102 

 141 

 – 

 – 

 6 

TOTAL

 $M 

 10,595 

 27 

(9,888)

 734 

(132)

 602 

(172)

 430 

(159)

 271 

 269 

 221 

 316 

1 

Finance costs from discontinued operations is presented after consolidation eliminations and therefore excludes any interest arising on intercompany 

amounts owed by Endeavour Group.

5.2.2 

Cash flows from/(used in) discontinued operations

The condensed cash flows from/(used in) discontinued operations during the period are set out below:

Net cash inflow from operating activities

Net cash outflow from investing activities

Net cash outflow from financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents at start of period

Cash and cash equivalents at end of period

2021

$M

 1,114 

(318)

(734)

 62 

 375 

 437 

2020

$M

 782 

(269)

(272)

 241 

 134 

 375 

SIGNIFICANT ACCOUNTING POLICIES 

Discontinued operations

Statement of Profit or Loss.

A discontinued operation is a component of the Group that represents a separate major line of business that 

is part of a disposal plan. The results of discontinued operations are presented separately in the Consolidated 

133

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O

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T

2

0

2

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1

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3

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4

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A

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I

O

N

 
 
 
 
 
 
 
 
 
132

Notes to the Consolidated Financial Statements

GROUP

STRUCTURE 5

133

A
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N
U
A
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2
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2
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W
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5.2 

DISCONTINUED OPERATIONS

5.2 

DISCONTINUED OPERATIONS (CONTINUED)

This section presents the profit or loss and cash flows from components of the Group that are currently 

held for distribution. On 18 June 2021, the Group obtained shareholder approval for the separation 

of Endeavour Group resulting in the discontinued operations of two separate major business lines, 

Endeavour Drinks and Hotels.

Endeavour Group Separation

On 18 June 2021, the Group obtained shareholder approval for the separation of Endeavour Group, which resulted in two of 

the Group’s separate major business lines, Endeavour Drinks and Hotels, being classified as discontinued operations. On this 

date, the Group classified the respective assets and liabilities of Endeavour Group as held for distribution and presented these 

amounts at their carrying value and separately from other assets and liabilities in the Consolidated Statement of Financial 

Position as at 27 June 2021. Refer to Note 5.3 for further details. 

5.2.1 

Segment disclosures from discontinued operations

The Group’s reportable segments from discontinued operations are as follows:

•  Endeavour Drinks – procurement and manufacture of drinks for resale to customers in Australia;

•  Hotels – provision of leisure and hospitality services including food and drinks, accommodation, entertainment, and gaming 

in Australia; and

•  Other – consists of various support functions for Endeavour Group.

The primary reporting measure of the reportable segments is earnings before interest, tax, and significant items which is consistent 

with the way management monitor and report the performance of these segments.

Revenue from the sale of goods and services

2021

Other revenue

Expenses

Significant items

Earnings/(loss) before interest, tax, and significant items

Earnings/(loss) before interest and tax

Finance costs 1

Profit before income tax

Income tax expense

Profit for the period from discontinued operations

Depreciation and amortisation – lease assets

Depreciation and amortisation – non‑lease assets

Capital expenditure

ENDEAVOUR 

DRINKS

 $M 

 10,167 

 5 

(9,503)

 669 

 – 

 669 

HOTELS

 $M 

 1,417 

 24 

(1,180)

 261 

 – 

 261 

OTHER

 $M 

 – 

 4 

(35)

(31)

 – 

(31)

 146 

 145 

 151 

 137 

 101 

 149 

 – 

 – 

 3 

TOTAL

 $M 

 11,584 

 33 

(10,718)

 899 

 – 

 899 

(159)

 740 

(207)

 533 

 283 

 246 

 303 

1 

Finance costs from discontinued operations is presented after consolidation eliminations and therefore excludes any interest arising on intercompany 

amounts owed by Endeavour Group.

5.2.1 

Segment disclosures from discontinued operations (continued)

2020
Revenue from the sale of goods and services
Other revenue
Expenses
Earnings/(loss) before interest, tax, and significant items
Significant items
Earnings/(loss) before interest and tax
Finance costs 1
Profit before income tax
Income tax expense
Profit for the period from discontinued operations
Depreciation and amortisation – lease assets
Depreciation and amortisation – non‑lease assets
Capital expenditure

ENDEAVOUR 
DRINKS
 $M 

 9,275 
 4 
(8,710)
 569 
 – 
 569 

HOTELS
 $M 

 1,320 
 23 
(1,171)
 172 
 – 
 172 

OTHER
 $M 

 – 
 – 
(7)
(7)
(132)
(139)

 138 
 119 
 169 

 131 
 102 
 141 

 – 
 – 
 6 

TOTAL
 $M 

 10,595 
 27 
(9,888)
 734 
(132)
 602 
(172)
 430 
(159)
 271 
 269 
 221 
 316 

1 

Finance costs from discontinued operations is presented after consolidation eliminations and therefore excludes any interest arising on intercompany 
amounts owed by Endeavour Group.

Cash flows from/(used in) discontinued operations

5.2.2 
The condensed cash flows from/(used in) discontinued operations during the period are set out below:

Net cash inflow from operating activities
Net cash outflow from investing activities
Net cash outflow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at start of period
Cash and cash equivalents at end of period

2021
$M

 1,114 
(318)
(734)
 62 
 375 
 437 

2020
$M

 782 
(269)
(272)
 241 
 134 
 375 

SIGNIFICANT ACCOUNTING POLICIES 

Discontinued operations

A discontinued operation is a component of the Group that represents a separate major line of business that 
is part of a disposal plan. The results of discontinued operations are presented separately in the Consolidated 
Statement of Profit or Loss.

1

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2

R
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V
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E

W

B
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I
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E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
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S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
A
T
O
N

I

 
 
 
 
 
 
 
 
 
134

Notes to the Consolidated Financial Statements

GROUP

STRUCTURE 5

5.3 

ASSETS HELD FOR SALE OR DISTRIBUTION AND ASSOCIATED LIABILITIES

5.3 

ASSETS HELD FOR SALE OR DISTRIBUTION AND DIRECTLY ASSOCIATED LIABILITIES (CONTINUED)

This section presents the assets and liabilities subject to a committed plan for distribution or sale. 

On 18 June 2021, the Group obtained shareholder approval for the separation of Endeavour Group. 
From this date, the Group classified the respective assets and liabilities of Endeavour Group as held 
for distribution.

Assets held for sale or distribution and associated liabilities

5.3.1 
Assets held for sale includes property, plant and equipment subject to a sale transaction and assets held for distribution 
and liabilities associated with assets held for distribution comprise the assets and liabilities of Endeavour Group.

Assets held for sale or distribution
Assets held for sale
Property, plant and equipment 1
Total assets held for sale
Assets held for distribution
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Lease assets
Property, plant and equipment 1
Intangible assets
Deferred tax assets
Total assets held for distribution
Total assets held for sale or distribution
Liabilities associated with assets held for distribution
Trade and other payables
Lease liabilities 2
Borrowings 2
Current tax payable
Other financial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total liabilities associated with assets held for distribution

2021
$M

2020
$M

 195 
 195 

 437 
 159 
 1,213 
 89 
 3,117 
 1,890 
 3,845 
 14 
 10,764 
 10,959 

 1,195 
 3,429 
 4 
 111 
 3 
 315 
 171 
 3 
 5,231 

 333 
 333 

 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 
 333 

 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 

1  At 28 June 2020, $3 million of this balance related to property, plant and equipment held for sale within Endeavour Group. At 27 June 2021, these assets of 

$3 million have been included in assets held for distribution.

2  Lease liabilities and borrowings are presented after consolidation eliminations and therefore excludes intercompany amounts owed by Endeavour Group. 

5.3.2 

Demerger accounting

The Group recognised a demerger distribution liability following shareholder approval for the separation of Endeavour Group. 

Accounting for demerger transactions is guided by AASB Interpretation 17 Distribution of Non-cash Assets to Owners. Liabilities 

for distributions payable to shareholders are measured at the fair value of the net assets to be distributed. The fair value of the 

Endeavour Group net assets has been determined by reference to the VWAP of Endeavour Group Limited shares traded on 

the ASX in their first five trading days ($6.21). A demerger distribution liability equal to the fair value of the net assets to be 

distributed of $7,870 million has been recognised at 27 June 2021, reflecting the obligation to distribute the assets of Endeavour 

Group to shareholders effective 28 June 2021.

The demerger distribution liability has been allocated between a capital reduction ($904 million) and a demerger dividend 

($6,966 million). The value of the capital reduction has been determined in accordance with the tax allocation specified by an ATO 

ruling and has been recognised against share capital. The demerger dividend, being the difference between the fair value of the net 

assets to be distributed and the capital reduction, has been recognised in a demerger reserve, within equity.

On 28 June 2021, subsequent to the end of the period, the Group lost control of Endeavour Group and recognised a gain 

within equity of $6,387 million equal to the difference between the net assets of Endeavour Group derecognised on transfer 

to shareholders (including a loan payable to the Group, which eliminated on consolidation) and the combination of (i) the 

non-controlling interest share of Endeavour Group’s net assets, (ii) the fair value of the investment in Endeavour Group retained 

by the Group, and (iii) the demerger distribution liability. The gain was recognised within discontinued operations for the 2022 

financial period.

SIGNIFICANT ACCOUNTING POLICIES 

Assets held for sale or distribution

Assets are classified as either held for sale or distribution. Assets are classified as held for sale if their carrying 

amount will be recovered principally through a sale transaction rather than continuing use and the sale 

is considered highly probable. Assets are classified as held for distribution if they are available for immediate 

distribution and the transaction is considered highly probable. 

Assets held for sale or distribution are measured at the lower of their carrying amount and fair value less costs 

to distribute or sell, except for assets such as deferred tax assets, assets arising from employee benefits, and 

financial assets which are specifically exempt from this measurement requirement.

An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs 

to sell or distribute. A gain is recognised for any subsequent increases in fair value less costs to sell or distribute 

of an asset, but not in excess of any cumulative impairment loss previously recognised. A gain or loss not 

previously recognised by the date of the sale or distribution of the asset is recognised at the date of derecognition. 

Assets are not depreciated or amortised while they are classified as held for sale or distribution. 

Interest and other expenses attributable to the liabilities associated with assets held for sale or distribution 

continue to be recognised.

135

A

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P

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2

0

2

1

W

O

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L

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1

H

I

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H

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F

O

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M

A

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2

R

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B

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I

N

E

S

S

3

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E

P

O

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D

I

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C

T

O

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'

4

R

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P

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F

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A

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C

I

A

L

5

O

T

H

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I

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F

O

R

M

A

T

I

O

N

 
 
 
 
 
 
 
 
 
5.3 

ASSETS HELD FOR SALE OR DISTRIBUTION AND ASSOCIATED LIABILITIES

5.3 

ASSETS HELD FOR SALE OR DISTRIBUTION AND DIRECTLY ASSOCIATED LIABILITIES (CONTINUED)

GROUP

STRUCTURE 5

135

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1

W
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W
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T
H
S
G
R
O
U
P

Demerger accounting

5.3.2 
The Group recognised a demerger distribution liability following shareholder approval for the separation of Endeavour Group. 
Accounting for demerger transactions is guided by AASB Interpretation 17 Distribution of Non-cash Assets to Owners. Liabilities 
for distributions payable to shareholders are measured at the fair value of the net assets to be distributed. The fair value of the 
Endeavour Group net assets has been determined by reference to the VWAP of Endeavour Group Limited shares traded on 
the ASX in their first five trading days ($6.21). A demerger distribution liability equal to the fair value of the net assets to be 
distributed of $7,870 million has been recognised at 27 June 2021, reflecting the obligation to distribute the assets of Endeavour 
Group to shareholders effective 28 June 2021.

The demerger distribution liability has been allocated between a capital reduction ($904 million) and a demerger dividend 
($6,966 million). The value of the capital reduction has been determined in accordance with the tax allocation specified by an ATO 
ruling and has been recognised against share capital. The demerger dividend, being the difference between the fair value of the net 
assets to be distributed and the capital reduction, has been recognised in a demerger reserve, within equity.

On 28 June 2021, subsequent to the end of the period, the Group lost control of Endeavour Group and recognised a gain 
within equity of $6,387 million equal to the difference between the net assets of Endeavour Group derecognised on transfer 
to shareholders (including a loan payable to the Group, which eliminated on consolidation) and the combination of (i) the 
non-controlling interest share of Endeavour Group’s net assets, (ii) the fair value of the investment in Endeavour Group retained 
by the Group, and (iii) the demerger distribution liability. The gain was recognised within discontinued operations for the 2022 
financial period.

SIGNIFICANT ACCOUNTING POLICIES 

Assets held for sale or distribution

Assets are classified as either held for sale or distribution. Assets are classified as held for sale if their carrying 
amount will be recovered principally through a sale transaction rather than continuing use and the sale 
is considered highly probable. Assets are classified as held for distribution if they are available for immediate 
distribution and the transaction is considered highly probable. 

Assets held for sale or distribution are measured at the lower of their carrying amount and fair value less costs 
to distribute or sell, except for assets such as deferred tax assets, assets arising from employee benefits, and 
financial assets which are specifically exempt from this measurement requirement.

An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs 
to sell or distribute. A gain is recognised for any subsequent increases in fair value less costs to sell or distribute 
of an asset, but not in excess of any cumulative impairment loss previously recognised. A gain or loss not 
previously recognised by the date of the sale or distribution of the asset is recognised at the date of derecognition. 

Assets are not depreciated or amortised while they are classified as held for sale or distribution. 

Interest and other expenses attributable to the liabilities associated with assets held for sale or distribution 
continue to be recognised.

1

I

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P
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2

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B
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S
S

3

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P
O
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I

D
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C
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'

4

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P
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T

F
I
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A
N
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A
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I

5

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M
A
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I

134

Notes to the Consolidated Financial Statements

This section presents the assets and liabilities subject to a committed plan for distribution or sale. 

On 18 June 2021, the Group obtained shareholder approval for the separation of Endeavour Group. 

From this date, the Group classified the respective assets and liabilities of Endeavour Group as held 

for distribution.

5.3.1 

Assets held for sale or distribution and associated liabilities

Assets held for sale includes property, plant and equipment subject to a sale transaction and assets held for distribution 

and liabilities associated with assets held for distribution comprise the assets and liabilities of Endeavour Group.

Assets held for sale or distribution

Assets held for sale

Property, plant and equipment 1

Total assets held for sale

Assets held for distribution

Cash and cash equivalents

Trade and other receivables

Inventories

Other financial assets

Lease assets

Property, plant and equipment 1

Intangible assets

Deferred tax assets

Trade and other payables

Lease liabilities 2

Borrowings 2

Current tax payable

Other financial liabilities

Provisions

Deferred tax liabilities

Other non-current liabilities

Total assets held for distribution

Total assets held for sale or distribution

Liabilities associated with assets held for distribution

2021

$M

2020

$M

 195 

 195 

 437 

 159 

 1,213 

 89 

 3,117 

 1,890 

 3,845 

 14 

 10,764 

 10,959 

 1,195 

 3,429 

 4 

 111 

 3 

 315 

 171 

 3 

 5,231 

 333 

 333 

 333 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

Total liabilities associated with assets held for distribution

1  At 28 June 2020, $3 million of this balance related to property, plant and equipment held for sale within Endeavour Group. At 27 June 2021, these assets of 

$3 million have been included in assets held for distribution.

2  Lease liabilities and borrowings are presented after consolidation eliminations and therefore excludes intercompany amounts owed by Endeavour Group. 

 
 
 
 
 
 
 
 
 
136

Notes to the Consolidated Financial Statements

GROUP

STRUCTURE 5

5.4 

SUBSIDIARIES

The following section sets out the list of Australian subsidiaries (which together with Woolworths Group 
Limited are referred to as the Closed Group) and their consolidated financial performance and position.

Deed of cross guarantee 

5.4.1 
Woolworths Group Limited and each of the wholly owned subsidiaries set out below (together referred to as the Closed 
Group) have entered into a Deed of Cross Guarantee (the Deed), as defined in ASIC Corporations (Wholly-owned Companies) 
Instrument 2016/785 (the Instrument). The effect of the Deed is that each entity in the Closed Group guarantees the payment 
in full of all debts of the other entities in the Closed Group in the event of their winding up.

Pursuant to the Instrument, the wholly-owned subsidiaries within the Closed Group are relieved from the requirement 
to prepare, audit, and lodge separate financial reports.

(i) 

Parties to the Deed

COMPANY

ACN 001 259 301 Pty Limited 

Advantage Supermarkets Pty Ltd

Hydrox Brands Pty Ltd

Jack Butler & Staff Pty. Ltd.

Advantage Supermarkets WA Pty Ltd 

Josona Pty Ltd

Andmist Pty. Limited

Kiaora Lands Pty Limited

Australian Grocery Wholesalers Pty Limited

Leasehold Investments Pty Ltd

A Statement of Profit or Loss and retained earnings, and Statement of Financial Position for the entities which are party to the 

Australian Independent Retailers Pty Ltd

Macro Wholefoods Company Pty Limited 1

Australian Safeway Stores Pty. Ltd.

Masters Installation Pty Limited

Barjok Pty Ltd

Calvartan Pty. Limited

Cartology Pty Limited

Cenijade Pty. Limited

Charmtex Pty Ltd

DB Deals Online Pty Limited

Drystone Pty Ltd

Dentra Pty. Limited

Drumstar Pty Ltd

Fabcot Pty Ltd

Fabsky Pty Ltd

Gembond Pty. Limited

GreenGrocer.com.au Pty Ltd

Grocery Wholesalers Pty Ltd

HealthyLife Company Pty Limited1

HP Distribution Pty Ltd

Hydrogen Nominees Pty. Ltd

Nalos Pty Ltd

Oxygen Nominees Pty. Ltd.

PEH (NZ IP) Pty Ltd

Philip Leong Stores Pty Limited 

Primary Connect International Pty Limited

Progressive Enterprises Holdings Limited

QFD Pty. Limited

Queensland Property Investments Pty Ltd

Universal Wholesalers Pty Limited

Vincentia Nominees Pty Ltd

W23 Pty Limited

W23 Incubator Pty Limited 1

W23 Investments Pty Limited

W23 Investments 4 Pty Limited

W23 Ventures Pty Limited 2

W360 R&D Pty Limited 3

Weetah Pty. Limited

1  These wholly-owned subsidiaries became a party to the Deed by way of an Assumption Deed on 23 June 2021.
2  Formerly W23 Investments 3 Pty Limited.
3  Formerly W23 Investments 2 Pty Limited.

137

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2

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W

O

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W

O

R

T

H

S

G

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O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

Woolworths Custodian Pty Ltd

Woolworths Executive Superannuation Scheme Pty Limited

Woolworths Format Development Pty Limited

Woolworths Group Superannuation Scheme Pty Ltd

Woolworths Group Payments Pty Limited 1

Woolworths International Trading Pty Limited

Woolworths Management Pty Ltd

Woolworths Marketplace Pty Limited 1

Woolworths Properties Pty Limited

Woolworths Property Double Bay Pty Limited

Woolworths Townsville Nominee Pty Ltd

Woolworths Trust Management Pty Limited

Woolworths360 Investments Pty Limited

Woolworths Trustee No. 2 Pty Limited

Woolworths Australian Communities Foundation Pty Limited WPay Pty Limited 1

1  These wholly-owned subsidiaries became a party to the Deed by way of an Assumption Deed on 23 June 2021.

5.4 

SUBSIDIARIES (CONTINUED)

5.4.1 

Deed of cross guarantee (continued)

(i) 

Parties to the Deed (continued)

COMPANY

WGP No 1 Pty Limited

WGP No 2 Pty Limited

Woolies Liquor Stores Pty. Ltd.

Woolstar Pty. Limited

Woolworths (International) Pty Limited

Woolworths (Project Finance) Pty. Limited

Woolworths (Q’land) Pty Limited

Woolworths (R & D) Pty Limited

Woolworths (South Australia) Pty Limited

Woolworths (Victoria) Pty Limited

Woolworths (W.A.) Pty Limited

Woolworths360 Pty Limited

Deed at the reporting date are as follows:

Continuing operations

Revenue from the sale of goods and services

Cost of sales

Gross profit

Other revenue

Branch expenses

Administration expenses

Earnings before interest and tax

Finance income

Profit before income tax

Income tax expense

Profit for the period

Retained earnings

Balance at start of period

Adjustment on initial application of AASB 16, net of tax

Profit for the period

Dividends paid (refer to Note 4.2)

Actuarial (loss)/gain on defined benefit superannuation plans, net of tax

Adjustment for companies transferred out of the Closed Group

Balance at end of period

2021

$M

2020

$M

 48,713 

(34,290)

 14,423 

 379 

(8,799)

(3,721)

 2,282 

(11)

 2,271 

(527)

 1,744 

 1,162 

 – 

 1,744 

(1,277)

(12)

 – 

 1,617 

 49,550 

(35,251)

 14,299 

 131 

(9,037)

(3,577)

 1,816 

(280)

 1,536 

(396)

 1,140 

 2,445 

(1,031)

 1,140 

(1,297)

 4 

(99)

 1,162 

 
 
 
 
 
 
 
 
 
136

Notes to the Consolidated Financial Statements

5.4 

SUBSIDIARIES

The following section sets out the list of Australian subsidiaries (which together with Woolworths Group 

Limited are referred to as the Closed Group) and their consolidated financial performance and position.

5.4.1 

Deed of cross guarantee 

Woolworths Group Limited and each of the wholly owned subsidiaries set out below (together referred to as the Closed 

Group) have entered into a Deed of Cross Guarantee (the Deed), as defined in ASIC Corporations (Wholly-owned Companies) 

Instrument 2016/785 (the Instrument). The effect of the Deed is that each entity in the Closed Group guarantees the payment 

in full of all debts of the other entities in the Closed Group in the event of their winding up.

Pursuant to the Instrument, the wholly-owned subsidiaries within the Closed Group are relieved from the requirement 

to prepare, audit, and lodge separate financial reports.

(i) 

Parties to the Deed

COMPANY

ACN 001 259 301 Pty Limited 

Advantage Supermarkets Pty Ltd

Hydrox Brands Pty Ltd

Jack Butler & Staff Pty. Ltd.

Advantage Supermarkets WA Pty Ltd 

Josona Pty Ltd

Andmist Pty. Limited

Kiaora Lands Pty Limited

Australian Grocery Wholesalers Pty Limited

Leasehold Investments Pty Ltd

Australian Independent Retailers Pty Ltd

Macro Wholefoods Company Pty Limited 1

Australian Safeway Stores Pty. Ltd.

Masters Installation Pty Limited

Barjok Pty Ltd

Calvartan Pty. Limited

Cartology Pty Limited

Cenijade Pty. Limited

Charmtex Pty Ltd

DB Deals Online Pty Limited

Drystone Pty Ltd

Dentra Pty. Limited

Drumstar Pty Ltd

Fabcot Pty Ltd

Fabsky Pty Ltd

Gembond Pty. Limited

GreenGrocer.com.au Pty Ltd

Grocery Wholesalers Pty Ltd

HealthyLife Company Pty Limited1

HP Distribution Pty Ltd

Hydrogen Nominees Pty. Ltd

2  Formerly W23 Investments 3 Pty Limited.

3  Formerly W23 Investments 2 Pty Limited.

Nalos Pty Ltd

Oxygen Nominees Pty. Ltd.

PEH (NZ IP) Pty Ltd

Philip Leong Stores Pty Limited 

Primary Connect International Pty Limited

Progressive Enterprises Holdings Limited

QFD Pty. Limited

Queensland Property Investments Pty Ltd

Universal Wholesalers Pty Limited

Vincentia Nominees Pty Ltd

W23 Pty Limited

W23 Incubator Pty Limited 1

W23 Investments Pty Limited

W23 Investments 4 Pty Limited

W23 Ventures Pty Limited 2

W360 R&D Pty Limited 3

Weetah Pty. Limited

1  These wholly-owned subsidiaries became a party to the Deed by way of an Assumption Deed on 23 June 2021.

GROUP

STRUCTURE 5

137

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R
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P
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2
1

W
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W
O
R
T
H
S
G
R
O
U
P

5.4 

SUBSIDIARIES (CONTINUED)

5.4.1 

Deed of cross guarantee (continued)

(i) 

Parties to the Deed (continued)

COMPANY

WGP No 1 Pty Limited
WGP No 2 Pty Limited
Woolies Liquor Stores Pty. Ltd.
Woolstar Pty. Limited
Woolworths (International) Pty Limited
Woolworths (Project Finance) Pty. Limited
Woolworths (Q’land) Pty Limited
Woolworths (R & D) Pty Limited
Woolworths (South Australia) Pty Limited
Woolworths (Victoria) Pty Limited
Woolworths (W.A.) Pty Limited
Woolworths360 Pty Limited
Woolworths360 Investments Pty Limited
Woolworths Australian Communities Foundation Pty Limited WPay Pty Limited 1

Woolworths Custodian Pty Ltd
Woolworths Executive Superannuation Scheme Pty Limited
Woolworths Format Development Pty Limited
Woolworths Group Superannuation Scheme Pty Ltd
Woolworths Group Payments Pty Limited 1
Woolworths International Trading Pty Limited
Woolworths Management Pty Ltd
Woolworths Marketplace Pty Limited 1
Woolworths Properties Pty Limited
Woolworths Property Double Bay Pty Limited
Woolworths Townsville Nominee Pty Ltd
Woolworths Trust Management Pty Limited
Woolworths Trustee No. 2 Pty Limited

1  These wholly-owned subsidiaries became a party to the Deed by way of an Assumption Deed on 23 June 2021.

A Statement of Profit or Loss and retained earnings, and Statement of Financial Position for the entities which are party to the 
Deed at the reporting date are as follows:

Continuing operations
Revenue from the sale of goods and services
Cost of sales
Gross profit
Other revenue
Branch expenses
Administration expenses

Earnings before interest and tax
Finance income
Profit before income tax
Income tax expense
Profit for the period

Retained earnings
Balance at start of period
Adjustment on initial application of AASB 16, net of tax
Profit for the period
Dividends paid (refer to Note 4.2)
Actuarial (loss)/gain on defined benefit superannuation plans, net of tax
Adjustment for companies transferred out of the Closed Group
Balance at end of period

2021
$M

2020
$M

 48,713 
(34,290)
 14,423 
 379 
(8,799)
(3,721)

 2,282 
(11)
 2,271 
(527)
 1,744 

 1,162 
 – 
 1,744 
(1,277)
(12)
 – 
 1,617 

 49,550 
(35,251)
 14,299 
 131 
(9,037)
(3,577)

 1,816 
(280)
 1,536 
(396)
 1,140 

 2,445 
(1,031)
 1,140 
(1,297)
 4 
(99)
 1,162 

1

I

H
G
H
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I
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H
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P
E
R
F
O
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M
A
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C
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2

R
E
V
I
E

W

B
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S
I
N
E
S
S

3

R
E
P
O
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T

I

D
R
E
C
T
O
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S

'

4

R
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P
O
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T

F
I
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A
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C
A
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I

5

O
T
H
E
R

I

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F
O
R
M
A
T
O
N

I

 
 
 
 
 
 
 
 
 
138

Notes to the Consolidated Financial Statements

5.4 

SUBSIDIARIES (CONTINUED)

5.4.1 

Deed of cross guarantee (continued)

Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets

Assets held for sale
Total current assets
Non‑current assets
Trade and other receivables
Other financial assets
Lease assets
Property, plant and equipment
Intangible assets
Investments in associates
Deferred tax assets
Other non-current assets
Total non‑current assets
Total assets
Current liabilities
Trade and other payables
Lease liabilities
Borrowings
Current tax payable
Other financial liabilities
Provisions
Other current liabilities
Total current liabilities
Non‑current liabilities

Lease liabilities
Borrowings
Other financial liabilities
Provisions
Other non-current liabilities
Total non‑current liabilities
Total liabilities
Net assets 1
Equity
Contributed equity
Reserves
Retained earnings
Total equity

GROUP

STRUCTURE 5

5.4 

SUBSIDIARIES (CONTINUED)

5.4.2   Details of wholly owned subsidiaries that are material to the Group

Material subsidiaries of Woolworths Group Limited, with the exception of those disclosed in Note 5.4.1 and Note 5.4.3, 

Woolworths New Zealand Group Limited

Woolworths New Zealand Limited

General Distributors Limited

New Zealand

New Zealand

New Zealand

Woolworths Group Limited

Woolworths Group Limited

Woolworths Group Limited

COUNTRY OF INCORPORATION

ULTIMATE AUSTRALIAN CONTROLLING ENTITY

5.4.3 

Details of non‑wholly owned subsidiaries that have material non‑controlling interests

NAME OF SUBSIDIARY

Endeavour Group Limited

The Quantium Group Holdings Pty Limited

Individually immaterial subsidiaries

The movement in non-controlling interests is as follows:

2021

Balance at start of period

Profit for the period

Other comprehensive loss for the period, net of tax

Total comprehensive income for the period, net of tax

Dividends paid

Recognition of non-controlling interest from  

acquisition of subsidiary

Share-based payments expense

Balance at end of period

2020

Balance at start of period

Adjusted balance

Profit for the period

Dividends paid

Balance at end of period

Adjustment due to Restructure Scheme and ALH Merger

Other comprehensive loss for the period, net of tax

Total comprehensive income for the period, net of tax

PROPORTION OF VOTING RIGHTS 

HELD BY NON‑CONTROLLING 

INTERESTS

PRINCIPAL PLACE  

OF BUSINESS

Australia

Australia

n/a

2021 

%

14.6

25

n/a

THE QUANTIUM 

GROUP 

ENDEAVOUR 

HOLDINGS PTY 

GROUP LIMITED 

LIMITED 

$M

INDIVIDUALLY 

IMMATERIAL 

SUBSIDIARIES 

TOTAL NON‑

CONTROLLING 

INTERESTS 

$M

 259 

 65 

(2)

 63 

(41)

 – 

 1 

 282 

$M

 – 

 285 

 285 

 34 

(2)

 32 

(58)

 259 

 – 

(1)

 – 

(1)

 – 

 56 

 – 

 55 

LTD 

$M

 285 

(285)

 – 

 – 

 – 

 – 

 – 

 – 

$M

 31 

 1 

 – 

 1 

(9)

 – 

 – 

 23 

$M

 29 

 – 

 29 

 10 

 – 

 10 

(8)

 31 

ENDEAVOUR 

ALH GROUP PTY 

GROUP LIMITED 

INDIVIDUALLY 

IMMATERIAL 

SUBSIDIARIES 

TOTAL NON‑

CONTROLLING 

INTERESTS 

2020 

%

14.6

n/a

n/a

$M

 290 

 65 

(2)

 63 

(50)

 56 

 1 

 360 

$M

 314 

 – 

 314 

 44 

(2)

 42 

(66)

 290 

139

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

2021
$M

RESTATED1 
2020
$M

are as follows:

COMPANY

 819 
 2,323 
 2,695 
 18 
 48 
 5,903 
 185 
 6,088 

 1,209 
 4,286 
 8,124 
 6,392 
 1,664 
 30 
 1,391 
 358 
 23,454 
 29,542 

 5,563 
 1,300 
 119 
 204 
 165 
 1,357 
 7,870 
 16,578 

 9,306 
 2,753 
 251 
 786 
 51 
 13,147 
 29,725 
(183)

 5,253 
(7,053)
 1,617 
(183)

 1,501 
 1,281 
 2,700 
 532 
 41 
 6,055 
 293 
 6,348 

 1,914 
 4,225 
 8,032 
 5,949 
 1,467 
 57 
 1,302 
 362 
 23,308 
 29,656 

 5,576 
 1,522 
 1,948 
 44 
 80 
 1,536 
 – 
 10,706 

 8,621 
 1,904 
 3 
 874 
 50 
 11,452 
 22,158 
 7,498 

 6,022 
 314 
 1,162 
 7,498 

1  Refer to Note 1.1 for further details. 
2  The Closed Group is in a net liability position at 27 June 2021 due to the recognition of the Endeavour Group demerger distribution liability of $7,870 million. 

This net liability position is expected to substantially reverse in 2022 as the Closed Group will recognise a gain on demerger. Refer to Note 6.4 for further details.

 
 
 
 
 
 
 
 
 
138

Notes to the Consolidated Financial Statements

5.4 

SUBSIDIARIES (CONTINUED)

5.4.1 

Deed of cross guarantee (continued)

Current assets

Cash and cash equivalents

Trade and other receivables

Inventories

Other financial assets

Other current assets

Assets held for sale

Total current assets

Non‑current assets

Trade and other receivables

Other financial assets

Lease assets

Property, plant and equipment

Intangible assets

Investments in associates

Deferred tax assets

Other non-current assets

Total non‑current assets

Total assets

Current liabilities

Trade and other payables

Lease liabilities

Borrowings

Current tax payable

Other financial liabilities

Provisions

Other current liabilities

Total current liabilities

Non‑current liabilities

Lease liabilities

Borrowings

Other financial liabilities

Provisions

Other non-current liabilities

Total non‑current liabilities

Total liabilities

Net assets 1

Equity

Contributed equity

Reserves

Retained earnings

Total equity

2021

$M

RESTATED1 

2020

$M

 23,454 

 29,542 

 23,308 

 29,656 

 819 

 2,323 

 2,695 

 18 

 48 

 5,903 

 185 

 6,088 

 1,209 

 4,286 

 8,124 

 6,392 

 1,664 

 30 

 1,391 

 358 

 5,563 

 1,300 

 119 

 204 

 165 

 1,357 

 7,870 

 16,578 

 9,306 

 2,753 

 251 

 786 

 51 

 13,147 

 29,725 

(183)

 5,253 

(7,053)

 1,617 

(183)

 1,501 

 1,281 

 2,700 

 532 

 41 

 6,055 

 293 

 6,348 

 1,914 

 4,225 

 8,032 

 5,949 

 1,467 

 57 

 1,302 

 362 

 5,576 

 1,522 

 1,948 

 44 

 80 

 1,536 

 – 

 10,706 

 8,621 

 1,904 

 3 

 874 

 50 

 11,452 

 22,158 

 7,498 

 6,022 

 314 

 1,162 

 7,498 

1  Refer to Note 1.1 for further details. 

2  The Closed Group is in a net liability position at 27 June 2021 due to the recognition of the Endeavour Group demerger distribution liability of $7,870 million. 

This net liability position is expected to substantially reverse in 2022 as the Closed Group will recognise a gain on demerger. Refer to Note 6.4 for further details.

5.4 

SUBSIDIARIES (CONTINUED)

5.4.2   Details of wholly owned subsidiaries that are material to the Group
Material subsidiaries of Woolworths Group Limited, with the exception of those disclosed in Note 5.4.1 and Note 5.4.3, 
are as follows:

COMPANY

COUNTRY OF INCORPORATION

ULTIMATE AUSTRALIAN CONTROLLING ENTITY

Woolworths New Zealand Group Limited
Woolworths New Zealand Limited
General Distributors Limited

New Zealand
New Zealand
New Zealand

Woolworths Group Limited
Woolworths Group Limited
Woolworths Group Limited

5.4.3 

Details of non‑wholly owned subsidiaries that have material non‑controlling interests

GROUP

STRUCTURE 5

139

A
N
N
U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

I

O
T
H
E
R

PROPORTION OF VOTING RIGHTS 
HELD BY NON‑CONTROLLING 
INTERESTS

PRINCIPAL PLACE  
OF BUSINESS

Australia
Australia
n/a

2021 
%

14.6
25
n/a

2020 
%

14.6
n/a
n/a

ENDEAVOUR 
GROUP LIMITED 
$M

THE QUANTIUM 
GROUP 
HOLDINGS PTY 
LIMITED 
$M

INDIVIDUALLY 
IMMATERIAL 
SUBSIDIARIES 
$M

TOTAL NON‑
CONTROLLING 
INTERESTS 
$M

 259 
 65 
(2)
 63 
(41)

 – 
 1 
 282 

 – 
(1)
 – 
(1)
 – 

 56 
 – 
 55 

 31 
 1 
 – 
 1 
(9)

 – 
 – 
 23 

 290 
 65 
(2)
 63 
(50)

 56 
 1 
 360 

N
F
O
R
M
A
T
O
N

I

ENDEAVOUR 
GROUP LIMITED 
$M

ALH GROUP PTY 
LTD 
$M

INDIVIDUALLY 
IMMATERIAL 
SUBSIDIARIES 
$M

TOTAL NON‑
CONTROLLING 
INTERESTS 
$M

 – 
 285 
 285 
 34 
(2)
 32 
(58)
 259 

 285 
(285)
 – 
 – 
 – 
 – 
 – 
 – 

 29 
 – 
 29 
 10 
 – 
 10 
(8)
 31 

 314 
 – 
 314 
 44 
(2)
 42 
(66)
 290 

NAME OF SUBSIDIARY

Endeavour Group Limited
The Quantium Group Holdings Pty Limited
Individually immaterial subsidiaries

The movement in non-controlling interests is as follows:

2021
Balance at start of period
Profit for the period
Other comprehensive loss for the period, net of tax
Total comprehensive income for the period, net of tax
Dividends paid
Recognition of non-controlling interest from  
acquisition of subsidiary
Share-based payments expense
Balance at end of period

2020
Balance at start of period
Adjustment due to Restructure Scheme and ALH Merger
Adjusted balance
Profit for the period
Other comprehensive loss for the period, net of tax
Total comprehensive income for the period, net of tax
Dividends paid
Balance at end of period

 
 
 
 
 
 
 
 
 
140

Notes to the Consolidated Financial Statements

5.4 

SUBSIDIARIES (CONTINUED)

5.5 

PARENT ENTITY INFORMATION

Details of non‑wholly owned subsidiaries that have material non‑controlling interests (continued)

5.4.3 
Summarised financial information in respect of each of the Group’s subsidiaries that has a material non-controlling interest 
were as follows:

This section presents the stand‑alone financial information of Woolworths Group Limited.

Current assets
Non-current assets
Current liabilities
Non-current liabilities
Revenue
Profit after tax
Total comprehensive income
Net cash inflow

ENDEAVOUR GROUP LIMITED1

2021
$M

 1,771 
 8,993 
 3,812 
 3,564 
 11,595 
 445 
 431 
 62 

20202
$M

 1,993 
 8,802 
 2,886 
 4,522 
 4,141 
(64)
(79)
 144 

1 

Financial information is presented for Endeavour Group Limited and its controlled entities as a separate group and therefore includes intercompany charges 
and balances with the Group which are eliminated on consolidation. In 2021, amounts presented for the profit or loss include the following intercompany 
amounts:
 –
 –

Revenue: $11 million of sales between Endeavour Group and New Zealand Food; and
Profit after tax: $88 million of interest on lease liabilities and borrowings with the Group.

2  The 2020 revenue, profit after tax, total comprehensive income, and net cash inflow disclosures reflect the results of Endeavour Group Limited from 

3 February 2020 onwards, being the date the Restructure Scheme to create Endeavour Group Limited was completed. 

Current assets
Non-current assets
Current liabilities
Non-current liabilities
Revenue
Profit after tax
Total comprehensive income
Net increase in cash and cash equivalents

THE QUANTIUM 
GROUP HOLDINGS 
PTY LIMITED

20213
$M

 110 
 246 
83
113
 192 
 56 
 54 
 17 

3 

Included in profit after tax is $36 million of non-recurring net income that is not part of the core operations of Quantium.

2  The parent entity is in a negative equity position at 27 June 2021 due to the recognition of the Endeavour Group demerger distribution liability of 

$7,870 million. This negative equity position is expected to substantially reverse in 2022 as the parent entity will recognise a gain on demerger. Refer to Note 

The parent entity has entered into a Deed of Cross Guarantee with the effect that the Company guarantees debts in respect of certain 

subsidiaries. Further details on the Deed of Cross Guarantee and the subsidiaries subject to the deed are disclosed in Note 5.4.1. 

Other guarantees held by the parent entity are the same as those held by the Group as disclosed in Note 6.1.

141

A

N

N

U

A

L

R

E

P

O

R

T

2

0

2

1

W

O

O

L

W

O

R

T

H

S

G

R

O

U

P

1

H

I

G

H

L

I

G

H

T

S

P

E

R

F

O

R

M

A

N

C

E

2

R

E

V

I

E

W

B

U

S

I

N

E

S

S

3

R

E

P

O

R

T

D

I

R

E

C

T

O

R

S

'

4

R

E

P

O

R

T

F

I

N

A

N

C

I

A

L

5

O

T

H

E

R

I

N

F

O

R

M

A

T

I

O

N

GROUP

STRUCTURE 5

2021

$M

RESTATED1 

2020

$M

 5,253 

 6,022 

 5,611 

 20,685 

 26,296 

 16,211 

 12,683 

 28,894 

(13)

 249 

 43 

(6,966)

(390)

 1,230 

(2,004)

(2,598)

2021

$M

 1,238 

 14 

 1,252 

 5,826 

 20,904 

 26,730 

 9,695 

 11,433 

 21,128 

(36)

 296 

 43 

 – 

 – 

 1,281 

(2,004)

 5,602 

2020

$M

 741 

 7 

 748 

2021

$M

 441 

 1 

 442 

2020

$M

 279 

-

 279 

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Total liabilities

Equity

Contributed equity

Reserves

Hedging reserve

Remuneration reserve

Equity instrument reserve

Demerger reserve

Other reserve

Retained earnings

Profit reserve

Loss reserve

Total equity2

Profit for the period

Other comprehensive income for the period, net of tax

Total comprehensive income for the period

1  Refer to Note 1.1 for further details.

6.4 for further details.

Guarantees

Commitments for capital expenditure

Estimated capital expenditure under firm contracts, payable:

Not later than one year

Later than one year, not later than two years

 
 
 
 
 
 
 
 
 
 
140

Notes to the Consolidated Financial Statements

GROUP

STRUCTURE 5

141

A
N
N
U
A
L

R
E
P
O
R
T
2
0
2
1

W
O
O
L
W
O
R
T
H
S
G
R
O
U
P

5.4 

SUBSIDIARIES (CONTINUED)

5.5 

PARENT ENTITY INFORMATION

5.4.3 

Details of non‑wholly owned subsidiaries that have material non‑controlling interests (continued)

Summarised financial information in respect of each of the Group’s subsidiaries that has a material non-controlling interest 

were as follows:

This section presents the stand‑alone financial information of Woolworths Group Limited.

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Revenue

Profit after tax

Total comprehensive income

Net cash inflow

ENDEAVOUR GROUP LIMITED1

2021

$M

 1,771 

 8,993 

 3,812 

 3,564 

 11,595 

 445 

 431 

 62 

20202

$M

 1,993 

 8,802 

 2,886 

 4,522 

 4,141 

(64)

(79)

 144 

THE QUANTIUM 

GROUP HOLDINGS 

PTY LIMITED

20213

$M

 110 

 246 

83

113

 192 

 56 

 54 

 17 

1 

Financial information is presented for Endeavour Group Limited and its controlled entities as a separate group and therefore includes intercompany charges 

and balances with the Group which are eliminated on consolidation. In 2021, amounts presented for the profit or loss include the following intercompany 

amounts:

 –

 –

Revenue: $11 million of sales between Endeavour Group and New Zealand Food; and

Profit after tax: $88 million of interest on lease liabilities and borrowings with the Group.

2  The 2020 revenue, profit after tax, total comprehensive income, and net cash inflow disclosures reflect the results of Endeavour Group Limited from 

3 February 2020 onwards, being the date the Restructure Scheme to create Endeavour Group Limited was completed. 

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Revenue

Profit after tax

Total comprehensive income

Net increase in cash and cash equivalents

3 

Included in profit after tax is $36 million of non-recurring net income that is not part of the core operations of Quantium.

Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Contributed equity
Reserves

Hedging reserve
Remuneration reserve
Equity instrument reserve
Demerger reserve
Other reserve
Retained earnings
Profit reserve
Loss reserve

Total equity2

Profit for the period
Other comprehensive income for the period, net of tax
Total comprehensive income for the period

2021
$M

RESTATED1 
2020
$M

 5,611 
 20,685 
 26,296 

 16,211 
 12,683 
 28,894 

 5,826 
 20,904 
 26,730 

 9,695 
 11,433 
 21,128 

 5,253 

 6,022 

(13)
 249 
 43 
(6,966)
(390)

 1,230 
(2,004)
(2,598)

2021
$M

 1,238 
 14 
 1,252 

(36)
 296 
 43 
 – 
 – 

 1,281 
(2,004)
 5,602 

2020
$M

 741 
 7 
 748 

1  Refer to Note 1.1 for further details.
2  The parent entity is in a negative equity position at 27 June 2021 due to the recognition of the Endeavour Group demerger distribution liability of 

$7,870 million. This negative equity position is expected to substantially reverse in 2022 as the parent entity will recognise a gain on demerger. Refer to Note 
6.4 for further details.

Guarantees
The parent entity has entered into a Deed of Cross Guarantee with the effect that the Company guarantees debts in respect of certain 
subsidiaries. Further details on the Deed of Cross Guarantee and the subsidiaries subject to the deed are disclosed in Note 5.4.1. 
Other guarantees held by the parent entity are the same as those held by the Group as disclosed in Note 6.1.

Commitments for capital expenditure

Estimated capital expenditure under firm contracts, payable:
Not later than one year
Later than one year, not later than two years

2021
$M

 441 
 1 
 442 

2020
$M

 279 
-
 279 

1

I

H
G
H
L
I
G
H
T
S

P
E
R
F
O
R
M
A
N
C
E

2

R
E
V
I
E

W

B
U
S
I
N
E
S
S

3

R
E
P
O
R
T

I

D
R
E
C
T
O
R
S

'

4

R
E
P
O
R
T

F
I
N
A
N
C
A
L

I

5

O
T
H
E
R

I

N
F
O
R
M
A
T
O
N

I

 
 
 
 
 
 
 
 
 
 
142

Notes to the Consolidated Financial Statements

OTHER 6

5.5 

PARENT ENTITY INFORMATION (CONTINUED)

6 OTHER

SIGNIFICANT ACCOUNTING POLICIES 

6.1 

CONTINGENT LIABILITIES

Financial information for the Company, Woolworths Group Limited, has been prepared on the same basis 
as the Consolidated Financial Statements. The following are accounting policies that are significant to the 
Company only as the related transactions are either not material for the Group or eliminated on consolidation.

Investments in subsidiaries
Investments in subsidiaries are accounted for at cost and are tested for impairment in accordance with the policy 
adopted for non-financial assets in Note 3.6. Dividends received from subsidiaries are recognised in profit or loss 
when a right to receive the dividend is established.

Lessor accounting
The Company recognises amounts due from lessees under finance leases as receivables at the amount of the 
Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect 
a constant periodic rate of return on the Company’s net investment outstanding in respect of the leases. The 
Company recognises lease payments received under operating leases as rental income on a straight-line basis 
over the lease term. Initial direct costs incurred in negotiating and arranging an operating lease are added to the 
carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.

5.6 

RELATED PARTIES

This section outlines the Group’s transactions with its related parties, such as its subsidiaries 
and Key Management Personnel.

6.2 

EMPLOYEE BENEFITS

Transactions within the Group
During the reporting period and previous reporting periods, Woolworths Group Limited advanced loans to, received and repaid 
loans from, and provided treasury, accounting, legal, taxation, and administrative services to other entities within the Group.

Entities within the Group also exchanged goods and services in sale and purchase transactions. All transactions occurred 
on the basis of normal commercial terms and conditions. Balances and transactions between the Company and its subsidiaries, 
which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note.

Directors and Key Management Personnel
All transactions with directors and Key Management Personnel (including their related parties) were conducted on an arm’s length 
basis in the ordinary course of business and under normal terms and conditions for customers and employees. Related parties 
of Key Management Personnel who are employees received normal employee benefits on standard terms and conditions.

The total remuneration for Key Management Personnel of the Group is as follows:

Short-term employee benefits
Post employment benefits
Other long-term benefits
Share-based payments

2021
$

2020
$

12,149,747
197,807
82,043
8,825,971
21,255,568

10,190,022
169,512
109,341
6,476,698
16,945,573

Equity instrument disclosures relating to Key Management Personnel
Details of equity instruments provided as compensation to Key Management Personnel and shares issued on exercise of these 
instruments, together with the terms and conditions of the instruments, are disclosed in the Remuneration Report.

Contingent liabilities are potential future cash payments where the likelihood of payment is not 

considered probable or cannot be measured reliably.

The Group has entered the following guarantees however the probability of having to make a payment under these guarantees 

•  Guarantees in the normal course of business relating to conditions set out in development applications and for the sale 

is considered remote: 

of properties; and 

•  Guarantees against workers’ compensation self-insurance liabilities as required by State WorkCover authorities. 

The guarantees are based on independent actuarial advice of the outstanding liability. 

No provision has been made in the Consolidated Financial Statements in respect of these contingencies, however there 

is a provision of $591 million for self-insured risks (2020: $637 million), which includes liabilities relating to workers’ 

compensation claims, that have been recognised in the Consolidated Statement of Financial Position at the reporting date.

As at 27 June 2021, there are class action proceedings against the Group, on behalf of several representative applicants, 

seeking payments in favour of salaried team members, covered by the General Retail Industry Award, working in Supermarkets, 

Metro, and BIG W stores.

From time to time, entities within the Group are party to various legal actions as well as inquiries from regulators and 

government bodies that have arisen in the ordinary course of business. Consideration has been given to such matters and it has 

been determined that these matters are not at a stage to support a reasonable evaluation of the likely outcome.

This section presents the Group’s benefits provided to its employees, including remuneration, 

superannuation, share schemes, and retirement plans.

6.2.1 

Employee benefits expense from continuing operations

2021

$M

 7,742 

 587 

 93 

 8,422 

RESTATED1 

2020

$M

 7,673 

 556 

 96 

 8,325 

Remuneration and on-costs

Superannuation expense

Share-based payments expense

1  Refer to Note 1.1 for further details.

6.2.2 

Share‑based payments 

Long‑Term Incentive (LTI) plan

Equity settled share-based payments form part of the remuneration of eligible employees of the Group. The Group continues 

to operate the Woolworths Incentive Share Plan (WISP). 

All sub-plans within the LTI plan are subject to performance hurdles being met. The Group’s sub-plans are as follows:

•  Performance rights sub-plan – delivers a right to acquire a share at a future date;

•  Performance shares sub-plan – delivers a right to acquire a share immediately; and

•  Cash award sub-plan – delivers a right to acquire cash at a future date.

No grants have been made under the performance shares or cash award sub-plans.

The performance rights sub-plan has been used to make long-term incentive offers to eligible employees. Upon exercise, each 

performance right offered under this sub-plan entitles the holder to one ordinary fully paid Woolworths Group Limited share.

143

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142

Notes to the Consolidated Financial Statements

5.5 

PARENT ENTITY INFORMATION (CONTINUED)

6 OTHER

SIGNIFICANT ACCOUNTING POLICIES 

6.1 

CONTINGENT LIABILITIES

OTHER 6

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Financial information for the Company, Woolworths Group Limited, has been prepared on the same basis 

as the Consolidated Financial Statements. The following are accounting policies that are significant to the 

Company only as the related transactions are either not material for the Group or eliminated on consolidation.

Investments in subsidiaries

Investments in subsidiaries are accounted for at cost and are tested for impairment in accordance with the policy 

adopted for non-financial assets in Note 3.6. Dividends received from subsidiaries are recognised in profit or loss 

when a right to receive the dividend is established.

Lessor accounting

The Company recognises amounts due from lessees under finance leases as receivables at the amount of the 

Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect 

a constant periodic rate of return on the Company’s net investment outstanding in respect of the leases. The 

Company recognises lease payments received under operating leases as rental income on a straight-line basis 

over the lease term. Initial direct costs incurred in negotiating and arranging an operating lease are added to the 

carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.

5.6 

RELATED PARTIES

and Key Management Personnel.

Transactions within the Group

During the reporting period and previous reporting periods, Woolworths Group Limited advanced loans to, received and repaid 

loans from, and provided treasury, accounting, legal, taxation, and administrative services to other entities within the Group.

Entities within the Group also exchanged goods and services in sale and purchase transactions. All transactions occurred 

on the basis of normal commercial terms and conditions. Balances and transactions between the Company and its subsidiaries, 

which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note.

Directors and Key Management Personnel

All transactions with directors and Key Management Personnel (including their related parties) were conducted on an arm’s length 

basis in the ordinary course of business and under normal terms and conditions for customers and employees. Related parties 

of Key Management Personnel who are employees received normal employee benefits on standard terms and conditions.

The total remuneration for Key Management Personnel of the Group is as follows:

Short-term employee benefits

Post employment benefits

Other long-term benefits

Share-based payments

2021

$

2020

$

12,149,747

10,190,022

197,807

82,043

169,512

109,341

8,825,971

6,476,698

21,255,568

16,945,573

Equity instrument disclosures relating to Key Management Personnel

Details of equity instruments provided as compensation to Key Management Personnel and shares issued on exercise of these 

instruments, together with the terms and conditions of the instruments, are disclosed in the Remuneration Report.

Contingent liabilities are potential future cash payments where the likelihood of payment is not 
considered probable or cannot be measured reliably.

The Group has entered the following guarantees however the probability of having to make a payment under these guarantees 
is considered remote: 
•  Guarantees in the normal course of business relating to conditions set out in development applications and for the sale 

of properties; and 

•  Guarantees against workers’ compensation self-insurance liabilities as required by State WorkCover authorities. 

The guarantees are based on independent actuarial advice of the outstanding liability. 

No provision has been made in the Consolidated Financial Statements in respect of these contingencies, however there 
is a provision of $591 million for self-insured risks (2020: $637 million), which includes liabilities relating to workers’ 
compensation claims, that have been recognised in the Consolidated Statement of Financial Position at the reporting date.

As at 27 June 2021, there are class action proceedings against the Group, on behalf of several representative applicants, 
seeking payments in favour of salaried team members, covered by the General Retail Industry Award, working in Supermarkets, 
Metro, and BIG W stores.

From time to time, entities within the Group are party to various legal actions as well as inquiries from regulators and 
government bodies that have arisen in the ordinary course of business. Consideration has been given to such matters and it has 
been determined that these matters are not at a stage to support a reasonable evaluation of the likely outcome.

This section outlines the Group’s transactions with its related parties, such as its subsidiaries 

6.2 

EMPLOYEE BENEFITS

This section presents the Group’s benefits provided to its employees, including remuneration, 
superannuation, share schemes, and retirement plans.

6.2.1 

Employee benefits expense from continuing operations

Remuneration and on-costs
Superannuation expense
Share-based payments expense

1  Refer to Note 1.1 for further details.

6.2.2 

Share‑based payments 

2021
$M

 7,742 
 587 
 93 
 8,422 

RESTATED1 
2020
$M

 7,673 
 556 
 96 
 8,325 

Long‑Term Incentive (LTI) plan
Equity settled share-based payments form part of the remuneration of eligible employees of the Group. The Group continues 
to operate the Woolworths Incentive Share Plan (WISP). 

All sub-plans within the LTI plan are subject to performance hurdles being met. The Group’s sub-plans are as follows:
•  Performance rights sub-plan – delivers a right to acquire a share at a future date;
•  Performance shares sub-plan – delivers a right to acquire a share immediately; and
•  Cash award sub-plan – delivers a right to acquire cash at a future date.

No grants have been made under the performance shares or cash award sub-plans.

The performance rights sub-plan has been used to make long-term incentive offers to eligible employees. Upon exercise, each 
performance right offered under this sub-plan entitles the holder to one ordinary fully paid Woolworths Group Limited share.

1

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144

Notes to the Consolidated Financial Statements

6.2 

EMPLOYEE BENEFITS (CONTINUED)

6.2 

EMPLOYEE BENEFITS (CONTINUED)

Share‑based payments (continued)

6.2.2 
A summary of the LTI plan performance hurdles for all outstanding grants is as follows:

GRANT YEAR

F193
F20 3
F21 3

RELATIVE TOTAL SHAREHOLDER RETURN 
(TSR)1

SALES PER TRADING  
SQUARE METRE 
(SQM) 2

RETURN ON FUNDS  
EMPLOYED (ROFE)1

VESTING  
PERIOD  
(YEARS)

Three
Three
Three

WEIGHTING 
(%)

33.34
33.34
33.34

HURDLE/ 
RANGE 
(PERCENTILE)

50th – 75th
50th – 75th
50th – 75th

WEIGHTING 
(%)

WEIGHTING 
(%)

33.33
33.33
33.33

33.33
33.33
33.33

1  The Group’s share price reset lower on 24 June 2021 to reflect the demerger of Endeavour Group which was implemented on 1 July 2021. In these 

circumstances an adjustment factor is applied by the ASX to historical share prices to recognise the impact of the demerger from a share price perspective. 
Accordingly, the Group has made no change to the TSR performance hurdle. 

2  Hurdle/range not published for sales per trading SQM and ROFE for the F19, F20, and F21 grants, as the Group does not provide market guidance on these 

metrics and the targets are commercially sensitive. The LTI targets and performance will be published following the end of the performance period.
3  The TSR component vests progressively where TSR equals or exceeds the 50th percentile of the comparator group up to the full 33.34% vesting, where 

TSR equals the 75th percentile of the comparator group. Sales per trading SQM and ROFE components vest progressively, upon attaining certain hurdles, 
to a maximum weighting of 33.33% respectively.

The variables in the table below are used as inputs into the model to determine the fair value of performance rights.

Grant date 1
Performance period start date
Exercise date
Expected volatility 2
Expected dividend yield
Risk-free interest rate
Weighted average fair value at grant date

2021
F21 WISP

1 Jul 2020
1 Jul 2020
1 Jul 2023
21.0%
4.0%
0.3%
$31.62

2020
F20 WISP

1 Jul 2019
1 Jul 2019
1 Jul 2022
15.0%
4.0%
1.0%
$27.86

1  Grant date represents the date on which there is a shared understanding of the terms and conditions of the arrangement.
2  The expected volatility is based on the historical implied volatility calculated based on the weighted average remaining life of the performance rights 

adjusted for any expected changes to future volatility due to publicly available information.

Deferred Short‑Term Incentive (Deferred STI)
The performance rights sub-plan has also been used to make offers of Deferred STI which have the following features:

•  For the F19, F20, and F21 Deferred STI plan, a one-year performance measure linked to sales, EBIT, working capital, 

customer satisfaction, and safety; and

• 

If the performance hurdles are met, participants are required to remain employed for a further two years to gain 
access to the performance rights, or otherwise forfeit the performance rights unless the Board exercises its discretion 
in accordance with the performance rights sub-plan rules.

Sign‑on and retention rights
The performance rights sub-plan has also been used to compensate new hires for foregone equity, and ensure that key 
employees are retained to protect and deliver on the Group’s strategic direction. It has been offered to:

•  Executives of newly acquired businesses in order to retain intellectual property during transition periods; or

•  Attract new executives.

Sign-on and retention rights generally do not have performance measures attached to them due to the objective of retaining 
key talent and vest subject to the executive remaining employed by the Group, generally for two or more years.

Recognition share plan
The performance rights sub-plan has also been used to reward employees of the Group. Participants are required to meet 
a service condition to gain access to the performance rights.

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OTHER 6

2021

2020

NO. OF RIGHTS

NO. OF RIGHTS

11,720,305 

13,477,758 

4,733,490 

4,230,388 

(3,963,884)

(4,664,750)

(2,222,323)

(1,323,091)

 1,605,750 

 – 

11,873,338

11,720,305

6.2.2 

Share‑based payments (continued)

Movements in outstanding performance rights

The following table summarises movements in outstanding rights:

Outstanding at start of period

Granted during the period

Vested during the period

Lapsed during the period

Adjustments during the period 1

Outstanding at end of period

1  At the end of F21, the approved demerger of Endeavour Group had an impact on the operation of the Group’s share plans, specifically where team members 

were holding unvested performance rights which were not entitled to receive Endeavour Group shares upon demerger. The impact of this was a loss of award 

value due to the Group’s share price resetting lower on 24 June 2021 to reflect the demerger of Endeavour Group which was implemented on 1 July 2021. To 

maintain the integrity of the Group’s share plans, underlying unvested awards were adjusted increasing the number of performance rights using a standard 

formula that has been applied in other comparable demerger situations.

Share-based payments expense for the period for the Group was $102,797,905 (2020: $95,696,477) which comprises 

$93,001,705 from continuing operations (2020: $95,696,477) and $9,796,200 from discontinued operations (2020: nil). 

SIGNIFICANT ACCOUNTING POLICIES 

Share‑based payments

Equity-settled share-based payments to employees are measured at the fair value of the equity instruments 

at grant date. The fair value excludes the effect of non-market based vesting conditions.

The fair value of instruments with market-based performance conditions (e.g. TSR) is calculated at the date 

of grant using a Monte Carlo simulation model. The probability of achieving market-based performance 

conditions is incorporated into the determination of the fair value per instrument.

The fair value of instruments with non-market-based performance conditions (e.g. sales per trading SQM and 

ROFE) and service conditions and retention rights is calculated using a Black-Scholes option pricing model.

The fair value determined at grant date is expensed on a straight-line basis over the vesting period based on the 

number of equity instruments that will eventually vest. At each reporting period the Group revises its estimate 

of the number of equity instruments expected to vest as a result of non-market based vesting conditions. 

Any change in original estimates is recognised in profit or loss with a corresponding adjustment to reserves.

6.2.3 

Share schemes

The total shares purchased during the year were 4,385,989 (2020: 3,213,542) at an average price per share of $42.90 

(2020: $36.21) to satisfy the vesting of share rights and allocation of shares under the Group’s employee share plans. 

No additional expense is recognised in relation to the shares purchased under the Employee Share Purchase Plan and the shares 

issued under the Non-executive Director Equity Plan as they are acquired out of salary sacrificed remuneration. 

3,373,381 rights were issued under the Woolworths Incentive Share Plan in 2021. Approval for the issue of securities under the 

Woolworths Incentive Share Plan to the Chief Executive Officer and Managing Director was obtained under ASX Listing Rule 

Woolworths Incentive Share Plan

10.14. 

Employee Share Purchase Plan (SPP)

The SPP provides permanent full-time and part-time employees who are Australian tax residents and are aged 18 years or over 

with the opportunity to purchase shares from pre-tax income via salary sacrifice. The Group pays the associated brokerage costs. 

 
 
 
 
 
 
 
 
 
144

Notes to the Consolidated Financial Statements

6.2 

EMPLOYEE BENEFITS (CONTINUED)

6.2 

EMPLOYEE BENEFITS (CONTINUED)

OTHER 6

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6.2.2 

Share‑based payments (continued)

A summary of the LTI plan performance hurdles for all outstanding grants is as follows:

GRANT YEAR

F193

F20 3

F21 3

RELATIVE TOTAL SHAREHOLDER RETURN 

SQUARE METRE 

SALES PER TRADING  

(SQM) 2

RETURN ON FUNDS  

EMPLOYED (ROFE)1

WEIGHTING 

WEIGHTING 

WEIGHTING 

VESTING  

PERIOD  

(YEARS)

Three

Three

Three

(TSR)1

HURDLE/ 

RANGE 

(%)

(PERCENTILE)

33.34

33.34

33.34

50th – 75th

50th – 75th

50th – 75th

(%)

33.33

33.33

33.33

(%)

33.33

33.33

33.33

1  The Group’s share price reset lower on 24 June 2021 to reflect the demerger of Endeavour Group which was implemented on 1 July 2021. In these 

circumstances an adjustment factor is applied by the ASX to historical share prices to recognise the impact of the demerger from a share price perspective. 

Accordingly, the Group has made no change to the TSR performance hurdle. 

2  Hurdle/range not published for sales per trading SQM and ROFE for the F19, F20, and F21 grants, as the Group does not provide market guidance on these 

metrics and the targets are commercially sensitive. The LTI targets and performance will be published following the end of the performance period.

3  The TSR component vests progressively where TSR equals or exceeds the 50th percentile of the comparator group up to the full 33.34% vesting, where 

TSR equals the 75th percentile of the comparator group. Sales per trading SQM and ROFE components vest progressively, upon attaining certain hurdles, 

to a maximum weighting of 33.33% respectively.

The variables in the table below are used as inputs into the model to determine the fair value of performance rights.

Grant date 1

Performance period start date

Exercise date

Expected volatility 2

Expected dividend yield

Risk-free interest rate

Weighted average fair value at grant date

2021

F21 WISP

1 Jul 2020

1 Jul 2020

1 Jul 2023

21.0%

4.0%

0.3%

$31.62

2020

F20 WISP

1 Jul 2019

1 Jul 2019

1 Jul 2022

15.0%

4.0%

1.0%

$27.86

1  Grant date represents the date on which there is a shared understanding of the terms and conditions of the arrangement.

2  The expected volatility is based on the historical implied volatility calculated based on the weighted average remaining life of the performance rights 

adjusted for any expected changes to future volatility due to publicly available information.

Deferred Short‑Term Incentive (Deferred STI)

The performance rights sub-plan has also been used to make offers of Deferred STI which have the following features:

•  For the F19, F20, and F21 Deferred STI plan, a one-year performance measure linked to sales, EBIT, working capital, 

customer satisfaction, and safety; and

• 

If the performance hurdles are met, participants are required to remain employed for a further two years to gain 

access to the performance rights, or otherwise forfeit the performance rights unless the Board exercises its discretion 

in accordance with the performance rights sub-plan rules.

Sign‑on and retention rights

The performance rights sub-plan has also been used to compensate new hires for foregone equity, and ensure that key 

employees are retained to protect and deliver on the Group’s strategic direction. It has been offered to:

•  Executives of newly acquired businesses in order to retain intellectual property during transition periods; or

•  Attract new executives.

Recognition share plan

Sign-on and retention rights generally do not have performance measures attached to them due to the objective of retaining 

key talent and vest subject to the executive remaining employed by the Group, generally for two or more years.

The performance rights sub-plan has also been used to reward employees of the Group. Participants are required to meet 

a service condition to gain access to the performance rights.

6.2.2 

Share‑based payments (continued)

Movements in outstanding performance rights
The following table summarises movements in outstanding rights:

Outstanding at start of period
Granted during the period
Vested during the period
Lapsed during the period
Adjustments during the period 1
Outstanding at end of period

2021
NO. OF RIGHTS

2020
NO. OF RIGHTS

11,720,305 
4,733,490 
(3,963,884)
(2,222,323)
 1,605,750 
11,873,338

13,477,758 
4,230,388 
(4,664,750)
(1,323,091)
 – 
11,720,305

1  At the end of F21, the approved demerger of Endeavour Group had an impact on the operation of the Group’s share plans, specifically where team members 

were holding unvested performance rights which were not entitled to receive Endeavour Group shares upon demerger. The impact of this was a loss of award 
value due to the Group’s share price resetting lower on 24 June 2021 to reflect the demerger of Endeavour Group which was implemented on 1 July 2021. To 
maintain the integrity of the Group’s share plans, underlying unvested awards were adjusted increasing the number of performance rights using a standard 
formula that has been applied in other comparable demerger situations.

Share-based payments expense for the period for the Group was $102,797,905 (2020: $95,696,477) which comprises 
$93,001,705 from continuing operations (2020: $95,696,477) and $9,796,200 from discontinued operations (2020: nil). 

SIGNIFICANT ACCOUNTING POLICIES 

Share‑based payments

Equity-settled share-based payments to employees are measured at the fair value of the equity instruments 
at grant date. The fair value excludes the effect of non-market based vesting conditions.

The fair value of instruments with market-based performance conditions (e.g. TSR) is calculated at the date 
of grant using a Monte Carlo simulation model. The probability of achieving market-based performance 
conditions is incorporated into the determination of the fair value per instrument.

The fair value of instruments with non-market-based performance conditions (e.g. sales per trading SQM and 
ROFE) and service conditions and retention rights is calculated using a Black-Scholes option pricing model.

The fair value determined at grant date is expensed on a straight-line basis over the vesting period based on the 
number of equity instruments that will eventually vest. At each reporting period the Group revises its estimate 
of the number of equity instruments expected to vest as a result of non-market based vesting conditions. 
Any change in original estimates is recognised in profit or loss with a corresponding adjustment to reserves.

Share schemes

6.2.3 
The total shares purchased during the year were 4,385,989 (2020: 3,213,542) at an average price per share of $42.90 
(2020: $36.21) to satisfy the vesting of share rights and allocation of shares under the Group’s employee share plans. 

No additional expense is recognised in relation to the shares purchased under the Employee Share Purchase Plan and the shares 
issued under the Non-executive Director Equity Plan as they are acquired out of salary sacrificed remuneration. 

Woolworths Incentive Share Plan
3,373,381 rights were issued under the Woolworths Incentive Share Plan in 2021. Approval for the issue of securities under the 
Woolworths Incentive Share Plan to the Chief Executive Officer and Managing Director was obtained under ASX Listing Rule 
10.14. 

Employee Share Purchase Plan (SPP)
The SPP provides permanent full-time and part-time employees who are Australian tax residents and are aged 18 years or over 
with the opportunity to purchase shares from pre-tax income via salary sacrifice. The Group pays the associated brokerage costs. 

1

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146

Notes to the Consolidated Financial Statements

OTHER 6

6.2 

EMPLOYEE BENEFITS (CONTINUED)

6.2 

EMPLOYEE BENEFITS (CONTINUED)

6.2.3 

Share schemes (continued)

Non‑executive Director Equity Plan
The Non-executive Director Equity Plan allows Non-executive Directors to acquire share rights through a pre-tax fee sacrifice 
plan. 

6.2.4 

Retirement plans

Defined benefit plans
The Company sponsors a defined benefit plan, the Woolworths Group Superannuation Plan (WGSP or the Plan), that provides 
superannuation benefits for employees upon retirement. The defined benefit plan is closed to new members. The assets of the 
WGSP are held in a sub-plan within AMP SignatureSuper that is legally separated from the Group. The WGSP invests entirely 
in pooled unit trust products where prices are quoted on a daily basis.

The WGSP consists of members with defined benefit entitlements and defined contribution benefits. The plan also pays 
allocated pensions to a small number of pensioners. The following disclosures relate only to the Group’s obligation in respect 
of defined benefit entitlements.

The Group contributes to the WGSP at rates as set out in the Trust Deed and Rules and the Participation Deed between the 
Group and AMP Superannuation Limited. Members contribute to the WGSP at rates dependent upon their membership 
category. The plan provides lump sum defined benefits that are defined by salary and period of membership.

An actuarial valuation was carried out at both reporting dates by Willis Towers Watson. The principal actuarial assumptions 
used for the purpose of the valuation are as follows:

Discount rate
Expected rate of salary increase
Rate of price inflation

2021
%

2.4
2.5
2.0

2020
%

2.3
2.5
2.0

The average duration of the defined benefit obligation at the end of the reporting period is 6.1 years (2020: 6.4 years) which 
relates wholly to active participants. 

Categories of plan assets

(i) 
The plan invests entirely in pooled superannuation trust products where prices are quoted daily. The asset allocation of the plan 
has been set taking into account the membership profile, the liquidity requirements of the plan, and risk appetite of the Group. 

The percentage invested in each asset class is as follows:

Equity instruments
Debt instruments
Real estate
Cash and cash equivalents
Other
Total

2021
%

54
18
8
3
17
100

2020
%

56
20
6
3
15
100

Significant actuarial assumptions for the determination of the defined benefit obligation are the discount rate and expected rate 

of salary increase. At the reporting date, the Group’s exposure to reasonably possible changes of the respective assumptions, 

while holding all other assumptions constant, is not considered material. 

Defined contribution plans

The majority of employees in Australia and New Zealand are part of a defined contribution superannuation scheme and receive 

fixed contributions from the Group in accordance with the rules of the WGSP and/or any statutory obligations. The amount 

recognised as an expense for defined contribution plans is disclosed as superannuation expense in Note 6.2.1.

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3

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I

N

F

O

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A

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N

6.2.4 

Retirement plans (continued)

Defined benefit plans (continued)

(ii) 

Movements in the present value of the defined benefit obligation and fair value of plan assets

The amount included in other non-current liabilities in the Consolidated Statement of Financial Position in respect of the net 

defined benefit liability is as follows:

FAIR VALUE OF PLAN ASSETS

OBLIGATION

NET DEFINED BENEFIT OBLIGATION

PRESENT VALUE OF DEFINED BENEFIT 

Balance at start of period

Recognised in Consolidated Statement 

of Profit or Loss:

Current service cost

Finance income/(costs)

Contributions by plan participants

Total amount included in branch 

expenses

Recognised in the Consolidated 

Statement of Other Comprehensive 

Income:

Return/(loss) on plan assets

Actuarial (loss)/gain

Total amount recognised in other 

comprehensive income, before tax

Other movements:

Benefits paid

Contributions by employer

Administration costs

Transfer to liabilities held for distribution

Balance at end of period

(iii) 

Sensitivity analysis

2021

$M

 281 

 – 

 9 

 3 

 12 

 40 

 – 

 40 

(41)

 12 

(3)

(12)

 289 

2020

$M

 350 

 – 

 10 

 2 

 12 

(12)

 – 

(12)

(84)

 19 

(4)

 – 

 281 

2021

$M

(319)

(6)

(10)

(3)

(19)

 – 

(56)

(56)

 41 

 – 

 3 

 15 

(335)

2020

$M

(405)

(7)

(11)

(2)

(20)

 – 

 18 

 18 

 84 

 – 

 4 

 – 

(319)

2021

$M

(38)

(6)

(1)

 – 

(7)

 40 

(56)

(16)

 – 

 12 

 – 

 3 

(46)

2020

$M

(55)

(7)

(1)

 – 

(8)

(12)

 18 

 6 

 – 

 19 

 – 

 – 

(38)

SIGNIFICANT ACCOUNTING POLICIES 

Defined benefit plans

The net defined benefit asset or liability recognised in the Consolidated Statement of Financial Position 

represents the surplus or deficit in the Group’s defined benefit plans which is calculated by estimating the 

amount of future benefit that employees have earned in the current and prior periods, discounting that amount, 

and deducting the fair value of the plan assets.

 
 
 
 
 
 
 
 
 
146

Notes to the Consolidated Financial Statements

6.2 

EMPLOYEE BENEFITS (CONTINUED)

6.2 

EMPLOYEE BENEFITS (CONTINUED)

OTHER 6

147

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P

The Non-executive Director Equity Plan allows Non-executive Directors to acquire share rights through a pre-tax fee sacrifice 

6.2.3 

Share schemes (continued)

Non‑executive Director Equity Plan

plan. 

6.2.4 

Retirement plans

Defined benefit plans

The Company sponsors a defined benefit plan, the Woolworths Group Superannuation Plan (WGSP or the Plan), that provides 

superannuation benefits for employees upon retirement. The defined benefit plan is closed to new members. The assets of the 

WGSP are held in a sub-plan within AMP SignatureSuper that is legally separated from the Group. The WGSP invests entirely 

in pooled unit trust products where prices are quoted on a daily basis.

The WGSP consists of members with defined benefit entitlements and defined contribution benefits. The plan also pays 

allocated pensions to a small number of pensioners. The following disclosures relate only to the Group’s obligation in respect 

of defined benefit entitlements.

The Group contributes to the WGSP at rates as set out in the Trust Deed and Rules and the Participation Deed between the 

Group and AMP Superannuation Limited. Members contribute to the WGSP at rates dependent upon their membership 

category. The plan provides lump sum defined benefits that are defined by salary and period of membership.

An actuarial valuation was carried out at both reporting dates by Willis Towers Watson. The principal actuarial assumptions 

used for the purpose of the valuation are as follows:

The average duration of the defined benefit obligation at the end of the reporting period is 6.1 years (2020: 6.4 years) which 

The plan invests entirely in pooled superannuation trust products where prices are quoted daily. The asset allocation of the plan 

has been set taking into account the membership profile, the liquidity requirements of the plan, and risk appetite of the Group. 

The percentage invested in each asset class is as follows:

Discount rate

Expected rate of salary increase

Rate of price inflation

relates wholly to active participants. 

(i) 

Categories of plan assets

Equity instruments

Debt instruments

Real estate

Cash and cash equivalents

Other

Total

2021

%

2.4

2.5

2.0

2021

%

54

18

8

3

17

100

2020

%

2.3

2.5

2.0

2020

%

56

20

6

3

15

100

6.2.4 

Retirement plans (continued)

Defined benefit plans (continued)
(ii) 
The amount included in other non-current liabilities in the Consolidated Statement of Financial Position in respect of the net 
defined benefit liability is as follows:

Movements in the present value of the defined benefit obligation and fair value of plan assets

FAIR VALUE OF PLAN ASSETS

PRESENT VALUE OF DEFINED BENEFIT 
OBLIGATION

NET DEFINED BENEFIT OBLIGATION

Balance at start of period

Recognised in Consolidated Statement 
of Profit or Loss:
Current service cost
Finance income/(costs)
Contributions by plan participants
Total amount included in branch 
expenses

Recognised in the Consolidated 
Statement of Other Comprehensive 
Income:
Return/(loss) on plan assets
Actuarial (loss)/gain
Total amount recognised in other 
comprehensive income, before tax

Other movements:
Benefits paid
Contributions by employer
Administration costs
Transfer to liabilities held for distribution
Balance at end of period

2021
$M

 281 

 – 
 9 
 3 

 12 

 40 
 – 

 40 

(41)
 12 
(3)
(12)
 289 

2020
$M

 350 

 – 
 10 
 2 

 12 

(12)
 – 

(12)

(84)
 19 
(4)
 – 
 281 

2021
$M

(319)

(6)
(10)
(3)

(19)

 – 
(56)

(56)

 41 
 – 
 3 
 15 
(335)

2020
$M

(405)

(7)
(11)
(2)

(20)

 – 
 18 

 18 

 84 
 – 
 4 
 – 
(319)

2021
$M

(38)

(6)
(1)
 – 

(7)

 40 
(56)

(16)

 – 
 12 
 – 
 3 
(46)

2020
$M

(55)

(7)
(1)
 – 

(8)

(12)
 18 

 6 

 – 
 19 
 – 
 – 
(38)

Sensitivity analysis

(iii) 
Significant actuarial assumptions for the determination of the defined benefit obligation are the discount rate and expected rate 
of salary increase. At the reporting date, the Group’s exposure to reasonably possible changes of the respective assumptions, 
while holding all other assumptions constant, is not considered material. 

Defined contribution plans
The majority of employees in Australia and New Zealand are part of a defined contribution superannuation scheme and receive 
fixed contributions from the Group in accordance with the rules of the WGSP and/or any statutory obligations. The amount 
recognised as an expense for defined contribution plans is disclosed as superannuation expense in Note 6.2.1.

SIGNIFICANT ACCOUNTING POLICIES 

Defined benefit plans

The net defined benefit asset or liability recognised in the Consolidated Statement of Financial Position 
represents the surplus or deficit in the Group’s defined benefit plans which is calculated by estimating the 
amount of future benefit that employees have earned in the current and prior periods, discounting that amount, 
and deducting the fair value of the plan assets.

1

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I

 
 
 
 
 
 
 
 
 
148

Notes to the Consolidated Financial Statements

OTHER 6

6.2 

EMPLOYEE BENEFITS (CONTINUED)

6.4 

SUBSEQUENT EVENTS

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Defined benefit plans (continued)

The calculation of the defined benefit obligation is performed at the end of each annual reporting period 
by a qualified actuary using the projected unit credit method.

Remeasurements of the net defined benefit asset or liability, which comprise actuarial gains and losses, and 
the return on plan assets (excluding interest), are recognised in the period in which they occur, directly in other 
comprehensive income and will not be reclassified to profit or loss.

The Group determines the net interest income or expense on the net defined benefit asset or liability for the period by 
applying the discount rate at the start of the period to the net defined benefit asset or liability, taking into account any 
changes during the period as a result of contributions and benefit payments. Net interest income or expense, service 
cost and other expenses related to defined benefit plans are recognised in the Consolidated Statement of Profit or Loss.

Defined contribution plans

Payments to defined contribution plans are recognised as an expense when employees have rendered service 
entitling them to the contributions.

6.3 

AUDITORS’ REMUNERATION

This section presents the total remuneration of the Group’s external auditors for audit, assurance, 
and other services.

The auditors’ remuneration for the Group is as follows:

Deloitte and related network firms
Audit or review of the financial report

Group
Subsidiaries

Total audit or review of the financial reports

Statutory assurance services required by legislation to be provided by the auditor
Other assurance and agreed-upon procedures under other legislation or contractual agreements 1
Other services:

Tax compliance services
Consulting services
Other non-assurance services

Total other services

2021
$’000

2020
$’000

 1,729 
 2,713 
 4,442 

 40 
 613 

 159 
 371 
 6 
 536 
 5,631 

 2,115 
 2,562 
 4,677 

 55 
 1,269 

 158 
 1,741 
 134 
 2,033 
 8,034 

1 

In 2021, other assurance and agreed upon procedures includes $255,000 in relation to assurance services with respect to the Endeavour Group demerger, 
and $133,000 in relation to review of the Sustainability Report (2020: other assurance and agreed upon procedures includes $875,000 in relation to 
assurance services with respect to the Endeavour Group Transformation, and $130,000 in relation to review of the Sustainability Report).

149

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2

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1

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2

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4

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5

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I

N

F

O

R

M

A

T

I

O

N

This section outlines events which have occurred between the reporting date and the date the Financial 

Report is authorised for issue.

Other than as noted below in relation to the demerger of Endeavour Group, the acquisition of PFD, and the off-market buy-back, 

there has not arisen in the interval between 27 June 2021 and the date of this report any other event that would have a material 

impact on the Consolidated Financial Statements as at and for the period ended 27 June 2021.

Demerger of Endeavour Group

On 28 June 2021, the Group lost control of Endeavour Group and recognised the retained 14.6% equity interest at fair value. 

The fair value was calculated using the VWAP of Endeavour Group Limited shares traded on the ASX in their first five trading 

days ($6.21). In addition, the Group derecognised the net assets held for distribution to shareholders (including a loan payable 

to the Group, which eliminated on consolidation) and the non-controlling interest share of Endeavour Group’s net assets.

A gain of $6,387 million was recognised within discontinued operations for the 2022 financial period, which represented the 

difference between the net assets of Endeavour Group derecognised on transfer to shareholders (including a loan payable 

to the Group, which eliminated on consolidation) and the combination of (i) the non-controlling interest share of Endeavour 

Group’s net assets, (ii) the fair value of the investment in Endeavour Group retained by the Group, and (iii) the demerger 

Effective from the separation date of 28 June 2021, Endeavour Group repaid $1,712 million of intercompany loans payable to the 

Group. These were funded by the $600 million bilateral bank facility and $1,900 million syndicated bank facility put in place for 

distribution liability.

Settlement of loan payable to the Group

Endeavour Group in June 2021.

Acquisition of PFD Food Services

Following ACCC approval on 10 June 2021, the Group completed the acquisition of a 65% equity interest in PFD Food Services 

Pty Ltd (PFD), resulting in the Group gaining control of PFD on 28 June 2021. In addition, PFD minority shareholders have a put 

option and the Group has an equivalent call option over the remaining 35% of the shares in PFD which is exercisable after three 

years from the acquisition date.

PFD is Australia’s largest privately owned foodservice network and delivers a range of dry goods, frozen and chilled products, 

fresh seafood and meat, confectionery, paper products, and cleaning solutions. PFD has a broad and diverse range of 

customers, including pubs and clubs, cafés, airlines, hotels, restaurants, aged care and retirement villages, resorts and theme 

parks, convenience outlets, venue and field caterers, fast food outlets, schools and kindergartens, and sporting, child care and 

correctional facilities.

The investment supports the Group’s Food and Everyday Needs Ecosystem strategy and is expected to unlock synergies for 

both businesses across the combined network and fleet. The Group will help to support PFD’s growth through access to the 

Group’s logistics, digital and data analytics, and operational capabilities. For the Group, it will enhance store range localisation 

and provide fleet synergies through better route and capacity optimisation across the combined network.

Consideration

The fair value of the consideration (including contingent consideration) is estimated to be $431 million, of which $324 million 

has been paid in cash but is subject to final working capital and net debt adjustments. The remaining balance of $107 million 

is the Group’s estimate of the contingent consideration payable which will be based on the normalised audited financial 

performance of the business for the 2021 financial period or as part of an earn out in the 2023 and 2024 financial periods. 

 
 
 
 
 
 
 
 
 
148

Notes to the Consolidated Financial Statements

6.2 

EMPLOYEE BENEFITS (CONTINUED)

6.4 

SUBSEQUENT EVENTS

OTHER 6

149

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SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Defined benefit plans (continued)

The calculation of the defined benefit obligation is performed at the end of each annual reporting period 

by a qualified actuary using the projected unit credit method.

Remeasurements of the net defined benefit asset or liability, which comprise actuarial gains and losses, and 

the return on plan assets (excluding interest), are recognised in the period in which they occur, directly in other 

comprehensive income and will not be reclassified to profit or loss.

The Group determines the net interest income or expense on the net defined benefit asset or liability for the period by 

applying the discount rate at the start of the period to the net defined benefit asset or liability, taking into account any 

changes during the period as a result of contributions and benefit payments. Net interest income or expense, service 

cost and other expenses related to defined benefit plans are recognised in the Consolidated Statement of Profit or Loss.

Defined contribution plans

entitling them to the contributions.

Payments to defined contribution plans are recognised as an expense when employees have rendered service 

6.3 

AUDITORS’ REMUNERATION

This section presents the total remuneration of the Group’s external auditors for audit, assurance, 

and other services.

The auditors’ remuneration for the Group is as follows:

Deloitte and related network firms

Audit or review of the financial report

Group

Subsidiaries

Total audit or review of the financial reports

Other services:

Tax compliance services

Consulting services

Other non-assurance services

Total other services

Statutory assurance services required by legislation to be provided by the auditor

Other assurance and agreed-upon procedures under other legislation or contractual agreements 1

2021

$’000

2020

$’000

 1,729 

 2,713 

 4,442 

 40 

 613 

 159 

 371 

 6 

 536 

 5,631 

 2,115 

 2,562 

 4,677 

 55 

 1,269 

 158 

 1,741 

 134 

 2,033 

 8,034 

1 

In 2021, other assurance and agreed upon procedures includes $255,000 in relation to assurance services with respect to the Endeavour Group demerger, 

and $133,000 in relation to review of the Sustainability Report (2020: other assurance and agreed upon procedures includes $875,000 in relation to 

assurance services with respect to the Endeavour Group Transformation, and $130,000 in relation to review of the Sustainability Report).

This section outlines events which have occurred between the reporting date and the date the Financial 
Report is authorised for issue.

Other than as noted below in relation to the demerger of Endeavour Group, the acquisition of PFD, and the off-market buy-back, 
there has not arisen in the interval between 27 June 2021 and the date of this report any other event that would have a material 
impact on the Consolidated Financial Statements as at and for the period ended 27 June 2021.

Demerger of Endeavour Group
On 28 June 2021, the Group lost control of Endeavour Group and recognised the retained 14.6% equity interest at fair value. 
The fair value was calculated using the VWAP of Endeavour Group Limited shares traded on the ASX in their first five trading 
days ($6.21). In addition, the Group derecognised the net assets held for distribution to shareholders (including a loan payable 
to the Group, which eliminated on consolidation) and the non-controlling interest share of Endeavour Group’s net assets.

A gain of $6,387 million was recognised within discontinued operations for the 2022 financial period, which represented the 
difference between the net assets of Endeavour Group derecognised on transfer to shareholders (including a loan payable 
to the Group, which eliminated on consolidation) and the combination of (i) the non-controlling interest share of Endeavour 
Group’s net assets, (ii) the fair value of the investment in Endeavour Group retained by the Group, and (iii) the demerger 
distribution liability.

Settlement of loan payable to the Group
Effective from the separation date of 28 June 2021, Endeavour Group repaid $1,712 million of intercompany loans payable to the 
Group. These were funded by the $600 million bilateral bank facility and $1,900 million syndicated bank facility put in place for 
Endeavour Group in June 2021.

Acquisition of PFD Food Services
Following ACCC approval on 10 June 2021, the Group completed the acquisition of a 65% equity interest in PFD Food Services 
Pty Ltd (PFD), resulting in the Group gaining control of PFD on 28 June 2021. In addition, PFD minority shareholders have a put 
option and the Group has an equivalent call option over the remaining 35% of the shares in PFD which is exercisable after three 
years from the acquisition date.

PFD is Australia’s largest privately owned foodservice network and delivers a range of dry goods, frozen and chilled products, 
fresh seafood and meat, confectionery, paper products, and cleaning solutions. PFD has a broad and diverse range of 
customers, including pubs and clubs, cafés, airlines, hotels, restaurants, aged care and retirement villages, resorts and theme 
parks, convenience outlets, venue and field caterers, fast food outlets, schools and kindergartens, and sporting, child care and 
correctional facilities.

The investment supports the Group’s Food and Everyday Needs Ecosystem strategy and is expected to unlock synergies for 
both businesses across the combined network and fleet. The Group will help to support PFD’s growth through access to the 
Group’s logistics, digital and data analytics, and operational capabilities. For the Group, it will enhance store range localisation 
and provide fleet synergies through better route and capacity optimisation across the combined network.

Consideration
The fair value of the consideration (including contingent consideration) is estimated to be $431 million, of which $324 million 
has been paid in cash but is subject to final working capital and net debt adjustments. The remaining balance of $107 million 
is the Group’s estimate of the contingent consideration payable which will be based on the normalised audited financial 
performance of the business for the 2021 financial period or as part of an earn out in the 2023 and 2024 financial periods. 

1

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2

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I

 
 
 
 
 
 
 
 
 
150

Notes to the Consolidated Financial Statements

OTHER 6

6.4 

SUBSEQUENT EVENTS (CONTINUED)

6.4 

SUBSEQUENT EVENTS (CONTINUED)

Acquisition of PFD Food Services (continued)

Identifiable assets acquired and liabilities assumed
The following table summarises the recognised amounts of identifiable assets acquired and liabilities assumed at the date 
of acquisition:

Assets
Cash and cash equivalents
Trade and other receivables 1
Inventories
Lease assets
Property, plant and equipment
Intangible assets
Deferred tax assets
Total assets
Liabilities
Trade and other payables
Lease liabilities

Provisions
Other liabilities
Deferred tax liabilities
Total liabilities
Total identifiable net assets acquired

$M

 45 
 152 
 127 
 369 
 47 
 215 
14
969

 266 
 369 

 47 
89
63
834
135

1 

Includes trade receivables which comprise gross contractual amounts due of $133 million, of which $4 million has a loss allowance recognised against it at the 
date of acquisition.

Fair values measured on a provisional basis

(i) 
The fair value of PFD’s intangible assets (including customer contracts and brand names) have been measured provisionally, 
pending completion of an independent valuation. 

If new information obtained within one year of the date of acquisition about facts and circumstances that existed at the date 
of acquisition identifies adjustments to the above amounts, or any additional provisions that existed at the date of acquisition, 
then the accounting for the acquisition will be revised.

Goodwill
Goodwill arising from the acquisition has been provisionally recognised as follows:

Consideration
Non-controlling interest 1
Fair value of identifiable net assets acquired
Goodwill

$M

 431 
 47 
(135)
343

1  Based on the non-controlling interest’s proportion of the fair value of identifiable net assets of PFD.

The goodwill is attributable mainly to the skills and technical talent of PFD’s workforce, the benefits from the inclusion of PFD 
in the Food and Everyday Needs Ecosystem, and intangible assets that do not qualify for separate recognition. None of the 
goodwill recognised is expected to be deductible for tax purposes.

Acquisition of PFD Food Services (continued)

Put option

The Group has a put option liability over the remaining 35% of the shares in PFD which is exercisable after three years from the 

acquisition date. The put option liability will be initially recognised at the present value of the amount expected to be paid at 

the time of exercise within other financial liabilities with a corresponding charge directly to equity. At the acquisition date, the 

estimated value of the put option liability is in the range of $400 million to $450 million.

In each reporting period, the discount on the put option liability will be recognised through finance costs in the Consolidated 

Statement of Profit or Loss over the period until the put option is exercised.

At each reporting period, the amount expected to be paid under the put option will be re-assessed and any changes to the 

estimate will be recognised in the Consolidated Statement of Profit or Loss. 

Off‑market buy‑back

On 26 August 2021, the Group announced a capital return of $2 billion to shareholders by way of an off-market buy-back 

of Woolworths Group Limited ordinary shares. 

The buy-back will be conducted through a tender process. Eligible shareholders who choose to participate can offer to sell some 

or all of their shares to the Group:

•  at a discount between 10% to 14% (inclusive) at 1% intervals to the market price; or

•  at the buy-back price, which is an election to sell shares at the price determined by the Group following completion of the 

tender process.

The buy-back price will be determined as the lowest price at which the Group can buy back the targeted amount of capital. 

The buy-back is expected to return approximately $840 million of franking credits to shareholders.

151

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4

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6.4 

SUBSEQUENT EVENTS (CONTINUED)

6.4 

SUBSEQUENT EVENTS (CONTINUED)

OTHER 6

151

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Acquisition of PFD Food Services (continued)

Put option
The Group has a put option liability over the remaining 35% of the shares in PFD which is exercisable after three years from the 
acquisition date. The put option liability will be initially recognised at the present value of the amount expected to be paid at 
the time of exercise within other financial liabilities with a corresponding charge directly to equity. At the acquisition date, the 
estimated value of the put option liability is in the range of $400 million to $450 million.

In each reporting period, the discount on the put option liability will be recognised through finance costs in the Consolidated 
Statement of Profit or Loss over the period until the put option is exercised.

At each reporting period, the amount expected to be paid under the put option will be re-assessed and any changes to the 
estimate will be recognised in the Consolidated Statement of Profit or Loss. 

Off‑market buy‑back
On 26 August 2021, the Group announced a capital return of $2 billion to shareholders by way of an off-market buy-back 
of Woolworths Group Limited ordinary shares. 

The buy-back will be conducted through a tender process. Eligible shareholders who choose to participate can offer to sell some 
or all of their shares to the Group:

•  at a discount between 10% to 14% (inclusive) at 1% intervals to the market price; or

•  at the buy-back price, which is an election to sell shares at the price determined by the Group following completion of the 

tender process.

The buy-back price will be determined as the lowest price at which the Group can buy back the targeted amount of capital. 
The buy-back is expected to return approximately $840 million of franking credits to shareholders.

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Notes to the Consolidated Financial Statements

Acquisition of PFD Food Services (continued)

Identifiable assets acquired and liabilities assumed

The following table summarises the recognised amounts of identifiable assets acquired and liabilities assumed at the date 

of acquisition:

Assets

Cash and cash equivalents

Trade and other receivables 1

Inventories

Lease assets

Property, plant and equipment

Intangible assets

Deferred tax assets

Total assets

Liabilities

Trade and other payables

Lease liabilities

Provisions

Other liabilities

Deferred tax liabilities

Total liabilities

Total identifiable net assets acquired

date of acquisition.

1 

Includes trade receivables which comprise gross contractual amounts due of $133 million, of which $4 million has a loss allowance recognised against it at the 

(i) 

Fair values measured on a provisional basis

pending completion of an independent valuation. 

The fair value of PFD’s intangible assets (including customer contracts and brand names) have been measured provisionally, 

If new information obtained within one year of the date of acquisition about facts and circumstances that existed at the date 

of acquisition identifies adjustments to the above amounts, or any additional provisions that existed at the date of acquisition, 

then the accounting for the acquisition will be revised.

Goodwill

Goodwill arising from the acquisition has been provisionally recognised as follows:

Consideration

Non-controlling interest 1

Fair value of identifiable net assets acquired

Goodwill

1  Based on the non-controlling interest’s proportion of the fair value of identifiable net assets of PFD.

The goodwill is attributable mainly to the skills and technical talent of PFD’s workforce, the benefits from the inclusion of PFD 

in the Food and Everyday Needs Ecosystem, and intangible assets that do not qualify for separate recognition. None of the 

goodwill recognised is expected to be deductible for tax purposes.

$M

 45 

 152 

 127 

 369 

 47 

 215 

14

969

 266 

 369 

 47 

89

63

834

135

$M

 431 

 47 

(135)

343

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152

Directors' Declaration

Independent Auditor's Report

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;

(b) in the directors’ opinion, the attached Consolidated Financial Statements are in compliance with International Financial 

Reporting Standards, as stated in Note 1.1 to the Consolidated Financial Statements;

(c)  in the directors’ opinion, the attached Consolidated 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 Group; and

(d) the directors have been given the declarations required by s.295A of the Corporations Act 2001.

At the date of this declaration, the Company is within the class of companies affected by ASIC Corporations (Wholly-owned 
Companies) Instrument 2016/785. The nature of the deed of cross guarantee is such that each company which is party to the 
deed guarantees to each creditor payment in full of any debt in accordance with the deed of cross guarantee.

In the directors’ opinion, there are reasonable grounds to believe that the Company and the companies to which the Instrument 
applies, as detailed in Note 5.4 to the Consolidated Financial Statements will, as a group, be able to meet any obligations 
or liabilities to which they are, or may become, subject by virtue of the deed of cross guarantee.

Signed in accordance with a resolution of the directors made pursuant to s.295(5) of the Corporations Act 2001.  
On behalf of the directors.

Gordon Cairns 
Chairman

26 August 2021

Brad Banducci 
Chief Executive Officer

Deloitte Touche Tohmatsu

ABN 74 490 121 060  

Grosvenor Place

225 George Street

Sydney NSW 2000

PO Box N250 Grosvenor Place

Sydney NSW 1219 Australia 

DX: 10307SSE

Tel: +61 (0) 2 9322 7000

Fax: +61 (0) 2 9322 7001

www.deloitte.com.au

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Independent Auditor’s Report to the Members of Woolworths Group Limited

Report on the Audit of the Financial Report

Opinion 

We have audited the financial report of Woolworths Group Limited  (the Company), and its subsidiaries (the Group) which 

comprises the Consolidated Statement of Financial Position as at 27 June 2021, the Consolidated Statement of Profit or 

Loss, the Consolidated Statement of Other Comprehensive Income, the Consolidated Statement of Changes in Equity and 

Consolidated Statement of Cash Flows for the 52-week period then ended, and notes to the financial statements, including 

a summary of significant accounting policies, and the Directors’ Declaration. 

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: 

(i)  giving a true and fair view of the Group’s financial position as at 27 June 2021 and of its financial performance for the 

52-week period then ended; and 

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion 

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are 

further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent 

of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical 

requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants 

(including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also 

fulfilled our other ethical responsibilities in accordance with the Code. 

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors 

of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters 

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial 

report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, 

and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Asia Pacific Limited and the Deloitte organisation.

 
 
 
 
 
 
 
 
 
 
 
152

Directors' Declaration

Independent Auditor's Report

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The directors declare that:

they become due and payable;

(a)  in the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when 

(b) in the directors’ opinion, the attached Consolidated Financial Statements are in compliance with International Financial 

Reporting Standards, as stated in Note 1.1 to the Consolidated Financial Statements;

(c)  in the directors’ opinion, the attached Consolidated 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 Group; and

(d) the directors have been given the declarations required by s.295A of the Corporations Act 2001.

At the date of this declaration, the Company is within the class of companies affected by ASIC Corporations (Wholly-owned 

Companies) Instrument 2016/785. The nature of the deed of cross guarantee is such that each company which is party to the 

deed guarantees to each creditor payment in full of any debt in accordance with the deed of cross guarantee.

In the directors’ opinion, there are reasonable grounds to believe that the Company and the companies to which the Instrument 

applies, as detailed in Note 5.4 to the Consolidated Financial Statements will, as a group, be able to meet any obligations 

or liabilities to which they are, or may become, subject by virtue of the deed of cross guarantee.

Signed in accordance with a resolution of the directors made pursuant to s.295(5) of the Corporations Act 2001.  

On behalf of the directors.

Gordon Cairns 

Chairman

26 August 2021

Brad Banducci 

Chief Executive Officer

Deloitte Touche Tohmatsu
ABN 74 490 121 060  

Grosvenor Place
225 George Street
Sydney NSW 2000
PO Box N250 Grosvenor Place
Sydney NSW 1219 Australia 

DX: 10307SSE
Tel: +61 (0) 2 9322 7000
Fax: +61 (0) 2 9322 7001
www.deloitte.com.au

Independent Auditor’s Report to the Members of Woolworths Group Limited

Report on the Audit of the Financial Report
Opinion 
We have audited the financial report of Woolworths Group Limited  (the Company), and its subsidiaries (the Group) which 
comprises the Consolidated Statement of Financial Position as at 27 June 2021, the Consolidated Statement of Profit or 
Loss, the Consolidated Statement of Other Comprehensive Income, the Consolidated Statement of Changes in Equity and 
Consolidated Statement of Cash Flows for the 52-week period then ended, and notes to the financial statements, including 
a summary of significant accounting policies, and the Directors’ Declaration. 

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: 

(i)  giving a true and fair view of the Group’s financial position as at 27 June 2021 and of its financial performance for the 

52-week period then ended; and 

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion 
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are 
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent 
of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical 
requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants 
(including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also 
fulfilled our other ethical responsibilities in accordance with the Code. 

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors 
of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters 
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial 
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, 
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.

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154

Independent Auditor's Report

Independent Auditor's Report

Key Audit Matter

How the scope of our audit responded 
to the Key Audit Matter

Key Audit Matter

How the scope of our audit responded 

to the Key Audit Matter

In conjunction with our valuation and accounting technical 
specialists, our procedures included but were not limited to:

•  Obtaining an understanding of the key controls in respect of 

the accounting for and disclosure of the transaction 

•  Reviewing the terms and conditions in the share sale 

agreement (SSA) and shareholders’ deed

•  Evaluating management’s accounting position paper, 
including the Group’s conclusion that the acquisition 
represents a business combination in accordance with 
AASB 3

•  Challenging management’s determination of the fair value 
of assets acquired and liabilities assumed, in particular the 
identification and valuation of  intangible assets acquired 
and the resulting deferred tax implications

•  Assessing the competency, qualifications, objectivity and 

methodologies of management’s valuation experts

•  Assessing the fair value of the previously held equity interest 

•  Recalculating the minority interest recognised

•  Assessing the Group’s accounting treatment for the put 

option in accordance with Australian Accounting Standards.  
This included assessing management’s calculation of the put 
option against the calculation methodology, time horizons 
and inputs stipulated in the SSA

•  Challenging the key assumptions used as inputs to the put 
option valuation, with a specific focus on forecast revenue 
and EBITDA, with reference to Quantium’s past performance 
and other data sources 

•  Evaluating  with the assistance of our treasury specialist 

the appropriateness of the discount rate applied to the put 
option liability

•  Assessing the appropriateness of the disclosures included 

in the financial report.

Quantium acquisition and accounting impacts

As disclosed in Note 5.1, on 31 May 2021, the Group 
acquired an additional equity interest in The Quantium 
Group Holdings Pty Limited (“Quantium”) for 
$223 million. This increased the Group’s shareholding 
from 47% to 75%, resulting in the Group gaining control 
of Quantium. This transaction has been accounted for 
as a business combination in accordance with AASB 3 
Business Combinations (AASB 3), requiring the Group to 
recognise the fair value of Quantium’s assets acquired 
and liabilities assumed, along with goodwill amounting 
to $388 million, in the Consolidated Statement of 
Financial Position from the effective date. The Group’s 
accounting for the acquisition in the year-end financial 
report remains provisional.

In accordance with AASB 3, the Group’s previously held 
equity interest of 47% has been treated as if it were 
disposed of and reacquired at fair value, resulting in a 
gain of $228 million. 

The acquisition accounting for Quantium is complex 
and involves a high level of judgement in assessing the 
fair value of the assets acquired and liabilities assumed 
and the fair value of the Group’s previously held equity 
interest.

As part of the transaction, the Group has written a 
put option over the 25% non-controlling interest in 
Quantium. This put option has been valued at $390 
million in accordance with AASB 9 Financial Instruments 
(AASB 9) and AASB 132 Financial Instruments: 
Presentation (AASB 132), representing the present value 
of the amount expected to be paid at the expected 
exercise date of June 2024. The Group has classified 
$145 million of the put option as a current liability to 
reflect the maximum unavoidable payment that would 
be payable if the minority holders exercise their put 
option within 12 months. 

As disclosed in Note 3.2, the put option valuation 
involves critical accounting estimates and judgements, 
specifically relating to future cash flows.

Due to the complexity and judgements involved in the 
acquisition accounting, we determined this to be a key 
audit matter.

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Accounting for the demerger of Endeavour Group

In conjunction with our accounting technical and tax specialists, 

our procedures included but were not limited to:

approval for the demerger of Endeavour Group Limited 

•  Obtaining and reviewing key demerger documents in relation 

On 18 June 2021, the Group obtained shareholder 

(Endeavour). Endeavour was demerged from the 

Group on 28 June 2021, with the Group retaining a 

14.6% interest. The Group will recognise a gain of 

$6,387 million within discontinued operations on 

demerger in the 2022 financial year.  This has been 

disclosed as a subsequent event in Note 6.4.

In accordance with AASB 5 Non-current Assets Held 

for Sale and Discontinued Operations (AASB 5) and as 

disclosed in Note 1.1 the Group’s F21 financial report 

reflects:

• 

two of the Group’s separate major business lines, 

Endeavour Drinks and Hotels, being classified 

as discontinued operations in the F21 and F20 

Consolidated Statement of Profit and Loss and 

Consolidated Statement of Other Comprehensive 

Income (and accompanying Notes to the 

Consolidated Financial Statements). Refer to Note 

5.2 for further details.

• 

the carrying value of Endeavour’s assets and 

liabilities as held for distribution in the F21 

Consolidated Statement of Financial Position. Refer 

to Note 5.3 for further details.

In addition, as disclosed in Note 4.2, a demerger 

to the accounting for the demerger with specific attention to:

the determination of the demerger date (28 June 2021)

the amount and recognition date of the demerger 

 –

 –

dividend

 –

the classification of Endeavour as held for distribution 

and its presentation as a discontinued operation in the 

F21 financial report

 –

calculation of the gain on demerger and the Group’s 

assessment that, post demerger, significant influence 

in Endeavour is retained 

 –

the taxation impacts of the demerger 

•  Evaluating the Group’s determination of the assets and 

liabilities classified as held for distribution

•  Assessing the completeness and accuracy of the 

classification of the Endeavour F21 and F20 results as 

discontinued operations in the Consolidated Statement 

of Profit and Loss and Consolidated Statement of Other 

Comprehensive Income.

•  Performing a recalculation of the demerger distribution 

liability with reference to the VWAP of Endeavour shares 

traded on the ASX in its first five trading days and the 

determination of the amount recorded in share capital with 

distribution liability has been recognised. This reflects 

reference to the ATO ruling

the fair value of the net assets of Endeavour to be 

distributed. The demerger distribution of $7,870 million 

has been allocated between a reduction in share 

capital of $904 million and a demerger dividend of 

$6,966 million.

•  Evaluating the key inputs used in the calculation of the gain 

on demerger, being the distribution value, the fair value of 

the retained investment at demerger date and the carrying 

value of Endeavour’s net assets at demerger date

•  Reviewing the appropriateness of disclosures in the 

We determined this to be a key audit matter due to the 

financial report.

financial impact of the transaction on the Group.

IT systems

Our procedures included but were not limited to:

The IT systems across the Group are complex and 

there are varying levels of integration. These systems 

are vital to the ongoing operations of the business and 

to the integrity of the financial reporting process and 

as a result, the assessment of IT systems forms a key 

component of our external audit.

•  Discussing with management the IT environment and 

consideration of the key financial processes to identify IT 

systems to include in the scope of our testing

•  Testing the design and implementation of the key IT controls 

of relevant financial reporting systems of the Group

• 

 Responding to deficiencies identified by designing and 

performing additional procedures which included the 

identification and testing of compensating controls and 

varying the nature, timing and extent of the substantive 

procedures performed. 

 
 
 
 
 
 
 
 
 
154

Independent Auditor's Report

Independent Auditor's Report

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Key Audit Matter

How the scope of our audit responded 

to the Key Audit Matter

Key Audit Matter

How the scope of our audit responded 
to the Key Audit Matter

Quantium acquisition and accounting impacts

As disclosed in Note 5.1, on 31 May 2021, the Group 

In conjunction with our valuation and accounting technical 

specialists, our procedures included but were not limited to:

acquired an additional equity interest in The Quantium 

•  Obtaining an understanding of the key controls in respect of 

Group Holdings Pty Limited (“Quantium”) for 

the accounting for and disclosure of the transaction 

$223 million. This increased the Group’s shareholding 

from 47% to 75%, resulting in the Group gaining control 

of Quantium. This transaction has been accounted for 

as a business combination in accordance with AASB 3 

Business Combinations (AASB 3), requiring the Group to 

recognise the fair value of Quantium’s assets acquired 

and liabilities assumed, along with goodwill amounting 

to $388 million, in the Consolidated Statement of 

Financial Position from the effective date. The Group’s 

accounting for the acquisition in the year-end financial 

report remains provisional.

In accordance with AASB 3, the Group’s previously held 

equity interest of 47% has been treated as if it were 

disposed of and reacquired at fair value, resulting in a 

•  Reviewing the terms and conditions in the share sale 

agreement (SSA) and shareholders’ deed

•  Evaluating management’s accounting position paper, 

including the Group’s conclusion that the acquisition 

represents a business combination in accordance with 

AASB 3

•  Challenging management’s determination of the fair value 

of assets acquired and liabilities assumed, in particular the 

identification and valuation of  intangible assets acquired 

and the resulting deferred tax implications

•  Assessing the competency, qualifications, objectivity and 

methodologies of management’s valuation experts

•  Assessing the fair value of the previously held equity interest 

gain of $228 million. 

•  Recalculating the minority interest recognised

The acquisition accounting for Quantium is complex 

and involves a high level of judgement in assessing the 

fair value of the assets acquired and liabilities assumed 

and the fair value of the Group’s previously held equity 

interest.

As part of the transaction, the Group has written a 

put option over the 25% non-controlling interest in 

Quantium. This put option has been valued at $390 

million in accordance with AASB 9 Financial Instruments 

(AASB 9) and AASB 132 Financial Instruments: 

Presentation (AASB 132), representing the present value 

of the amount expected to be paid at the expected 

•  Assessing the Group’s accounting treatment for the put 

option in accordance with Australian Accounting Standards.  

This included assessing management’s calculation of the put 

option against the calculation methodology, time horizons 

and inputs stipulated in the SSA

•  Challenging the key assumptions used as inputs to the put 

option valuation, with a specific focus on forecast revenue 

and EBITDA, with reference to Quantium’s past performance 

and other data sources 

•  Evaluating  with the assistance of our treasury specialist 

the appropriateness of the discount rate applied to the put 

option liability

exercise date of June 2024. The Group has classified 

•  Assessing the appropriateness of the disclosures included 

$145 million of the put option as a current liability to 

in the financial report.

reflect the maximum unavoidable payment that would 

be payable if the minority holders exercise their put 

option within 12 months. 

As disclosed in Note 3.2, the put option valuation 

involves critical accounting estimates and judgements, 

specifically relating to future cash flows.

Due to the complexity and judgements involved in the 

acquisition accounting, we determined this to be a key 

audit matter.

Accounting for the demerger of Endeavour Group

On 18 June 2021, the Group obtained shareholder 
approval for the demerger of Endeavour Group Limited 
(Endeavour). Endeavour was demerged from the 
Group on 28 June 2021, with the Group retaining a 
14.6% interest. The Group will recognise a gain of 
$6,387 million within discontinued operations on 
demerger in the 2022 financial year.  This has been 
disclosed as a subsequent event in Note 6.4.

In accordance with AASB 5 Non-current Assets Held 
for Sale and Discontinued Operations (AASB 5) and as 
disclosed in Note 1.1 the Group’s F21 financial report 
reflects:

• 

• 

two of the Group’s separate major business lines, 
Endeavour Drinks and Hotels, being classified 
as discontinued operations in the F21 and F20 
Consolidated Statement of Profit and Loss and 
Consolidated Statement of Other Comprehensive 
Income (and accompanying Notes to the 
Consolidated Financial Statements). Refer to Note 
5.2 for further details.

the carrying value of Endeavour’s assets and 
liabilities as held for distribution in the F21 
Consolidated Statement of Financial Position. Refer 
to Note 5.3 for further details.

In addition, as disclosed in Note 4.2, a demerger 
distribution liability has been recognised. This reflects 
the fair value of the net assets of Endeavour to be 
distributed. The demerger distribution of $7,870 million 
has been allocated between a reduction in share 
capital of $904 million and a demerger dividend of 
$6,966 million.

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In conjunction with our accounting technical and tax specialists, 
our procedures included but were not limited to:

•  Obtaining and reviewing key demerger documents in relation 
to the accounting for the demerger with specific attention to:

 –

 –

 –

 –

the determination of the demerger date (28 June 2021)

the amount and recognition date of the demerger 
dividend

the classification of Endeavour as held for distribution 
and its presentation as a discontinued operation in the 
F21 financial report

calculation of the gain on demerger and the Group’s 
assessment that, post demerger, significant influence 
in Endeavour is retained 

 –

the taxation impacts of the demerger 

•  Evaluating the Group’s determination of the assets and 

W

liabilities classified as held for distribution

•  Assessing the completeness and accuracy of the 

classification of the Endeavour F21 and F20 results as 
discontinued operations in the Consolidated Statement 
of Profit and Loss and Consolidated Statement of Other 
Comprehensive Income.

•  Performing a recalculation of the demerger distribution 

liability with reference to the VWAP of Endeavour shares 
traded on the ASX in its first five trading days and the 
determination of the amount recorded in share capital with 
reference to the ATO ruling

•  Evaluating the key inputs used in the calculation of the gain 

on demerger, being the distribution value, the fair value of 
the retained investment at demerger date and the carrying 
value of Endeavour’s net assets at demerger date

•  Reviewing the appropriateness of disclosures in the 

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We determined this to be a key audit matter due to the 
financial impact of the transaction on the Group.

financial report.

IT systems

Our procedures included but were not limited to:

The IT systems across the Group are complex and 
there are varying levels of integration. These systems 
are vital to the ongoing operations of the business and 
to the integrity of the financial reporting process and 
as a result, the assessment of IT systems forms a key 
component of our external audit.

•  Discussing with management the IT environment and 

consideration of the key financial processes to identify IT 
systems to include in the scope of our testing

•  Testing the design and implementation of the key IT controls 

of relevant financial reporting systems of the Group

• 

 Responding to deficiencies identified by designing and 
performing additional procedures which included the 
identification and testing of compensating controls and 
varying the nature, timing and extent of the substantive 
procedures performed. 

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156

Independent Auditor's Report

Independent Auditor's Report

Other Information 
The directors are responsible for the other information. The other information comprises the information included in the 
Group’s Annual Report for the 52-week period ended 27 June 2021 but does not include the financial report and our auditor’s 
report thereon. 

Our opinion on the financial report does not cover the other information and accordingly, we do not express any form of assurance 
conclusion thereon. 

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider 
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit 
or otherwise appears to be materially misstated.  

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are 
required to report that fact. We have nothing to report in this regard.

Directors’ Responsibilities for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance 
with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is 
necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, 
whether due to fraud or error. 

In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, 
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors 
either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. 

Auditor’s Responsibilities for the Audit of the Financial Report 
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material 
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance 
is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards 
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered 
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users 
taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain 
professional scepticism throughout the audit. We also:  

• 

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform 
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for 
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, 
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

•  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate 

in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. 

•  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related 

disclosures made by management and the directors. 

•  Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit 
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt 
on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required 
to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, 
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. 
However, future events or conditions may cause the Group to cease to continue as a going concern. 

•  Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the 

financial report represents the underlying transactions and events in a manner that achieves fair presentation. 

•  Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within 
the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance 
of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the directors, regarding, among other matters, the planned scope and timing of the audit and significant 
audit findings, including any significant deficiencies in internal control that we identify during our audit. 

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, 
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, 
and where applicable, actions taken to eliminate threats or safeguards applied. 

Auditor’s Responsibilities for the Audit of the Financial Report (continued)

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the 

financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report 

unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that 

a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected 

to outweigh the public interest benefits of such communication.

Report on the Remuneration Report 

Opinion on the Remuneration Report

27 June 2021. 

Responsibilities 

We have audited the Remuneration Report included in pages 52 to 75 of the Directors’ Report for the 52-week period ended 

In our opinion, the Remuneration Report of Woolworths Group Limited, for the 52-week period ended 27 June 2021, complies 

with section 300A of the Corporations Act 2001. 

The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance 

with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based 

on our audit conducted in accordance with Australian Auditing Standards. 

DELOITTE TOUCHE TOHMATSU

A V Griffiths 

Partner 

Chartered Accountants 

Sydney, 26 August 2021 

T C Elliott 

Partner 

Chartered Accountants

Sydney, 26 August 2021

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156

Independent Auditor's Report

Independent Auditor's Report

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Auditor’s Responsibilities for the Audit of the Financial Report (continued)

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the 
financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report 
unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that 
a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected 
to outweigh the public interest benefits of such communication.

Report on the Remuneration Report 

Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 52 to 75 of the Directors’ Report for the 52-week period ended 
27 June 2021. 

In our opinion, the Remuneration Report of Woolworths Group Limited, for the 52-week period ended 27 June 2021, complies 
with section 300A of the Corporations Act 2001. 

Responsibilities 
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance 
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based 
on our audit conducted in accordance with Australian Auditing Standards. 

DELOITTE TOUCHE TOHMATSU

A V Griffiths 
Partner 
Chartered Accountants 

Sydney, 26 August 2021 

T C Elliott 
Partner 
Chartered Accountants

Sydney, 26 August 2021

Other Information 

report thereon. 

conclusion thereon. 

The directors are responsible for the other information. The other information comprises the information included in the 

Group’s Annual Report for the 52-week period ended 27 June 2021 but does not include the financial report and our auditor’s 

Our opinion on the financial report does not cover the other information and accordingly, we do not express any form of assurance 

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider 

whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit 

or otherwise appears to be materially misstated.  

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are 

required to report that fact. We have nothing to report in this regard.

Directors’ Responsibilities for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance 

with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is 

necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, 

whether due to fraud or error. 

In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, 

disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors 

either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. 

Auditor’s Responsibilities for the Audit of the Financial Report 

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material 

misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance 

is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards 

will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered 

material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users 

taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain 

professional scepticism throughout the audit. We also:  

• 

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform 

audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for 

our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, 

as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

•  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate 

in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. 

•  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related 

disclosures made by management and the directors. 

•  Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit 

evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt 

on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required 

to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, 

to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. 

However, future events or conditions may cause the Group to cease to continue as a going concern. 

•  Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the 

financial report represents the underlying transactions and events in a manner that achieves fair presentation. 

•  Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within 

the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance 

of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the directors, regarding, among other matters, the planned scope and timing of the audit and significant 

audit findings, including any significant deficiencies in internal control that we identify during our audit. 

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, 

and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, 

and where applicable, actions taken to eliminate threats or safeguards applied. 

1

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158

Shareholder information (as at 30 July 2021)

Shareholder information (as at 30 July 2021)

The shareholder information set out below was applicable as at 30 July 2021.

DISTRIBUTION OF SHARES
Analysis of numbers of shareholders by size of holding:

RANGE OF SHARES

1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total

NUMBER OF 
SHAREHOLDERS

PERCENTAGE OF  
ISSUED CAPITAL 
%

247,405
105,619
10,195
4,525
108
367,852

6.71
17.78
5.62
6.87
63.02
100.00

All shares above are fully paid ordinary shares. Each fully paid ordinary share carries one voting right.

There were 7,365 holders of less than a marketable parcel of shares based on the closing market price on 30 July 2021 of $38.76.

TOP 20 LARGEST SHAREHOLDERS

NAME

NUMBER OF SHARES

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

HSBC Custody Nominees (Australia) Limited
JP Morgan Nominees Australia Pty Limited
Citicorp Nominees Pty Limited
BNP Paribas Nominees Pty Ltd
National Nominees Limited
Pacific Custodians Pty Limited
Australian Foundation Investment Company Limited
Woolworths Custodian Pty Ltd
Netwealth Investments Limited
Argo Investments Limited
Australian Executor Trustees Limited
Custodial Services Limited
Milton Corporation Limited
AMP Life Limited
Navigator Australia Ltd
UBS Nominees Pty Ltd
BKI Investment Company Limited
Nulis Nominees (Australia) Limited
Djerriwarrh Investments Limited
The Senior Master of the Supreme Court

313,230,039
207,711,442
92,037,814
83,659,750
40,322,880
7,806,384
6,415,718
6,087,401
4,895,999
3,479,526
3,063,086
3,009,827
2,936,973
1,772,944
1,644,830
1,615,848
1,428,744
1,164,557
1,008,198
959,970

PERCENTAGE OF  
TOTAL SHARES  
ISSUED 
%

24.71
16.39
7.26
6.60
3.18
0.62
0.51
0.48
0.39
0.27
0.24
0.24
0.23
0.14
0.13
0.13
0.11
0.09
0.08
0.08

SUBSTANTIAL SHAREHOLDERS
Woolworths Group Limited had received the following substantial shareholder notifications. As at 30 July 2021, no other 
substantial shareholder notices have been received.

HOLDER

BlackRock Group
The Vanguard Group, Inc

SHARES HELD AT  
DATE OF NOTICE

80,972,196
63,412,121

PERCENTAGE OF  
SHARES HELD AT  
DATE OF NOTICE 
%

6.43
5.00

DATE OF NOTICE

29/05/2019
29/07/2021

UNQUOTED EQUITY SECURITIES

As at 30 July 2021, there were 11,346,031 rights over unissued ordinary shares.

DIVIDEND

The final dividend of 55 cents per share is expected to be paid on or around 8 October 2021 to eligible shareholders. No discount 

will apply to the dividend reinvestment plan for the 2021 final dividend. There is currently no limit on the number of shares that 

can participate in the dividend reinvestment plan. The company intends to issue new shares to satisfy its obligations under the 

dividend reinvestment plan.

STOCK EXCHANGE LISTINGS

Woolworths Group Limited ordinary shares are listed on the Australian Securities Exchange (ASX) under code: WOW. 

Woolworths Group Limited shares may be traded in sponsored American Depository Receipts form in the United States.

CORPORATE GOVERNANCE STATEMENT

A copy of the Corporate Governance Statement can be found on our website. Visit www.woolworthsgroup.com.au 

2021

September

October

2022

February

March

April

August

SHAREHOLDER CALENDAR 1

3  Record date for Final Dividend

8  Payment date for Final Dividend

27  Announcement of first quarter sales results

27  Annual General Meeting

23  Announcement of half year results

4  Record date for Interim Dividend

13  Payment date for Interim Dividend

28  Announcement of third quarter sales results

24  Announcement of F22 results

1  Dates are subject to change.

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158

Shareholder information (as at 30 July 2021)

Shareholder information (as at 30 July 2021)

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The shareholder information set out below was applicable as at 30 July 2021.

DISTRIBUTION OF SHARES

Analysis of numbers of shareholders by size of holding:

RANGE OF SHARES

1 – 1,000

1,001 – 5,000

5,001 – 10,000

10,001 – 100,000

100,001 and over

Total

All shares above are fully paid ordinary shares. Each fully paid ordinary share carries one voting right.

There were 7,365 holders of less than a marketable parcel of shares based on the closing market price on 30 July 2021 of $38.76.

TOP 20 LARGEST SHAREHOLDERS

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

NAME

HSBC Custody Nominees (Australia) Limited

JP Morgan Nominees Australia Pty Limited

Citicorp Nominees Pty Limited

BNP Paribas Nominees Pty Ltd

National Nominees Limited

Pacific Custodians Pty Limited

Australian Foundation Investment Company Limited

Woolworths Custodian Pty Ltd

Netwealth Investments Limited

Argo Investments Limited

Australian Executor Trustees Limited

Custodial Services Limited

Milton Corporation Limited

AMP Life Limited

Navigator Australia Ltd

UBS Nominees Pty Ltd

BKI Investment Company Limited

Nulis Nominees (Australia) Limited

Djerriwarrh Investments Limited

20

The Senior Master of the Supreme Court

SUBSTANTIAL SHAREHOLDERS

substantial shareholder notices have been received.

HOLDER

BlackRock Group

The Vanguard Group, Inc

Woolworths Group Limited had received the following substantial shareholder notifications. As at 30 July 2021, no other 

SHARES HELD AT  

DATE OF NOTICE

80,972,196

63,412,121

PERCENTAGE OF  

SHARES HELD AT  

DATE OF NOTICE 

%

6.43

5.00

DATE OF NOTICE

29/05/2019

29/07/2021

NUMBER OF 

SHAREHOLDERS

PERCENTAGE OF  

ISSUED CAPITAL 

247,405

105,619

10,195

4,525

108

367,852

NUMBER OF SHARES

313,230,039

207,711,442

92,037,814

83,659,750

40,322,880

7,806,384

6,415,718

6,087,401

4,895,999

3,479,526

3,063,086

3,009,827

2,936,973

1,772,944

1,644,830

1,615,848

1,428,744

1,164,557

1,008,198

959,970

PERCENTAGE OF  

TOTAL SHARES  

%

6.71

17.78

5.62

6.87

63.02

100.00

ISSUED 

%

24.71

16.39

7.26

6.60

3.18

0.62

0.51

0.48

0.39

0.27

0.24

0.24

0.23

0.14

0.13

0.13

0.11

0.09

0.08

0.08

UNQUOTED EQUITY SECURITIES
As at 30 July 2021, there were 11,346,031 rights over unissued ordinary shares.

DIVIDEND
The final dividend of 55 cents per share is expected to be paid on or around 8 October 2021 to eligible shareholders. No discount 
will apply to the dividend reinvestment plan for the 2021 final dividend. There is currently no limit on the number of shares that 
can participate in the dividend reinvestment plan. The company intends to issue new shares to satisfy its obligations under the 
dividend reinvestment plan.

STOCK EXCHANGE LISTINGS
Woolworths Group Limited ordinary shares are listed on the Australian Securities Exchange (ASX) under code: WOW. 

Woolworths Group Limited shares may be traded in sponsored American Depository Receipts form in the United States.

CORPORATE GOVERNANCE STATEMENT
A copy of the Corporate Governance Statement can be found on our website. Visit www.woolworthsgroup.com.au 

SHAREHOLDER CALENDAR 1

2021

September
3  Record date for Final Dividend

October
8  Payment date for Final Dividend
27  Announcement of first quarter sales results
27  Annual General Meeting

2022

February
23  Announcement of half year results

March
4  Record date for Interim Dividend

April
13  Payment date for Interim Dividend
28  Announcement of third quarter sales results

August
24  Announcement of F22 results

1  Dates are subject to change.

1

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160

Shareholder information (as at 30 July 2021)

Glossary

SUBLEASES
The key terms and conditions of the subleases between Woolworths Group Limited and Endeavour Group Limited are as follows:

TERM

DESCRIPTION

Head lease

The subleases contain an obligation on Endeavour to perform and observe Woolworths’ 
obligations as tenant under the head lease that relate to the liquor premises. There is an obligation 
on Woolworths to observe and perform its obligations under the head lease. 

Commencement 
date and term

The term and further terms of each sublease align with the term and further terms under the 
relevant head lease, minus one day.

Option terms

Where Woolworths exercises its option to renew the head lease, it must offer a further term to 
Endeavour. However, in circumstances where head leases include an obligation to trade as a liquor 
store, Endeavour is obliged to exercise its option if Woolworths does.

Occupancy costs

The rent and outgoings payable are calculated according to the proportion of the area of the liquor 
premises against the area of the whole premises. All occupancy costs must be paid by Endeavour 
to Woolworths, with any adjustments to outgoings to be made at the end of the financial year.

Amenity

Dealings

Endeavour must not do anything that would detract from the amenity of the supermarket 
premises or interfere with Woolworths’ business.

Endeavour must not assign, sublet or license without Woolworths’ consent. Consent may 
be granted or withheld at Woolworths’ absolute discretion. A change in control of Endeavour 
is a breach of the sublease.

Make good obligations

Endeavour is required to leave the liquor premises in good and tenantable repair and condition. 
Endeavour must comply with the make good requirements under the head lease. 

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GLOSSARY

ACCC

ASIC

AWEI

CAGR

(CODB)

CPO

CRO

(CFC) 

DC

Drive

E2E

EBITDA

EBT

Australian Competition and Consumer Commission

Australian Securities and Investments Commission 

Australian Workplace Equality Index

Compound annual growth rate

Cash realisation ratio

Operating cash flow as a percentage of Group net profit after tax before depreciation 

and amortisation

CLO

Chief Legal Officer

Comparable sales

Measure of sales excluding stores that have been opened or closed in the last 12 months and 

existing stores where there has been a demonstrable impact from store disruption because 

of store refurbishment or new store openings/closures

Cost of doing business 

Expenses relating to the operation of the business

Chief People Officer

Chief Risk Officer 

Distribution centre

Customer 1st Ranging 

Developing a clearly defined range to provide an easier shopping experience for the customer

Customer fulfilment centre 

Dedicated online distribution centre

Delivery Now

Subscription services for delivery of online orders in under two hours

Delivery Unlimited

Subscription service that gives customers access to free delivery on any Next Day Delivery 

window and three-hour Same Day Delivery windows, or reduced fees for quicker delivery options 

Direct to boot

Where a customer places an order online and drives to a dedicated area where a team member 

places the order directly in the customer’s boot

Convenient options for customers to pick up online orders through Drive up or Drive thru facilities

End-to-end

Earnings before taxes

Earnings before interest, taxes, depreciation, and amortization

eReceipts 

Digital versions of receipts that are automatically saved in a customer’s Everyday Rewards app 

eStore

Dedicated store for the fulfilment of online orders sometimes incorporating automation

 
 
 
 
 
 
 
 
 
160

Shareholder information (as at 30 July 2021)

The key terms and conditions of the subleases between Woolworths Group Limited and Endeavour Group Limited are as follows:

SUBLEASES

TERM

DESCRIPTION

Head lease

The subleases contain an obligation on Endeavour to perform and observe Woolworths’ 

obligations as tenant under the head lease that relate to the liquor premises. There is an obligation 

on Woolworths to observe and perform its obligations under the head lease. 

Commencement 

date and term

relevant head lease, minus one day.

The term and further terms of each sublease align with the term and further terms under the 

Option terms

Where Woolworths exercises its option to renew the head lease, it must offer a further term to 

Endeavour. However, in circumstances where head leases include an obligation to trade as a liquor 

store, Endeavour is obliged to exercise its option if Woolworths does.

Occupancy costs

The rent and outgoings payable are calculated according to the proportion of the area of the liquor 

premises against the area of the whole premises. All occupancy costs must be paid by Endeavour 

to Woolworths, with any adjustments to outgoings to be made at the end of the financial year.

Amenity

Endeavour must not do anything that would detract from the amenity of the supermarket 

premises or interfere with Woolworths’ business.

Dealings

Endeavour must not assign, sublet or license without Woolworths’ consent. Consent may 

be granted or withheld at Woolworths’ absolute discretion. A change in control of Endeavour 

is a breach of the sublease.

Make good obligations

Endeavour is required to leave the liquor premises in good and tenantable repair and condition. 

Endeavour must comply with the make good requirements under the head lease. 

161

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Glossary

GLOSSARY

ACCC

ASIC

AWEI

CAGR

Australian Competition and Consumer Commission

Australian Securities and Investments Commission 

Australian Workplace Equality Index

Compound annual growth rate

Cash realisation ratio

Operating cash flow as a percentage of Group net profit after tax before depreciation 
and amortisation

CLO

Chief Legal Officer

Comparable sales

Measure of sales excluding stores that have been opened or closed in the last 12 months and 
existing stores where there has been a demonstrable impact from store disruption because 
of store refurbishment or new store openings/closures

Cost of doing business 
(CODB)

Expenses relating to the operation of the business

W

CPO

CRO

Chief People Officer

Chief Risk Officer 

Customer 1st Ranging 

Developing a clearly defined range to provide an easier shopping experience for the customer

Customer fulfilment centre 
(CFC) 

Dedicated online distribution centre

DC

Distribution centre

Delivery Now

Subscription services for delivery of online orders in under two hours

Delivery Unlimited

Subscription service that gives customers access to free delivery on any Next Day Delivery 
window and three-hour Same Day Delivery windows, or reduced fees for quicker delivery options 

Direct to boot

Where a customer places an order online and drives to a dedicated area where a team member 
places the order directly in the customer’s boot

Drive

E2E

EBITDA

EBT

Convenient options for customers to pick up online orders through Drive up or Drive thru facilities

End-to-end

Earnings before interest, taxes, depreciation, and amortization

Earnings before taxes

eReceipts 

Digital versions of receipts that are automatically saved in a customer’s Everyday Rewards app 

eStore

Dedicated store for the fulfilment of online orders sometimes incorporating automation

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162

Glossary

GLOSSARY

Fixed charges cover ratio

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

Free cash flow

Cash flow generated by Woolworths Group after equity related financing activities including 
dividends and repayment of lease liabilities

Funds employed

Net assets employed excluding net tax balances and put option liability

MFC

MSRDC

n.m.

NAIDOC

NDC

Micro-fulfilment centre

Melbourne South regional distribution centre 

Not meaningful

National Aborigines and Islanders Day Observance Committee

 National distribution centre

Net assets employed

Net assets excluding net debt and other financial assets and liabilities 

Net Promoter Score (NPS) A loyalty measure based on a single question where a customer rates a business on a scale 

of zero to 10. The score is the net result of the percentage of customers providing a score of nine 
or 10 (promoters) less the percentage of customers providing a score of zero to six (detractors)

On‑demand/express 
delivery

An express or scheduled delivery service providing online orders at the customer's convenience

WGEA

Workplace Gender Equality Agency

Pick up

A service which enables collection of online shopping orders in store or at selected locations

Priority Assistance

Dedicated delivery windows for eligible vulnerable customers to ensure access to online 
delivery services

RDC

Renewal

Regional Distribution Centre

A total store transformation focused on the overall store environment, team, range and process 
efficiency (including digital)

Return on Funds Employed 
(ROFE)

Calculated as EBIT before significant items for the previous 12 months as a percentage 
of average (opening, mid and closing) funds employed including significant items provisions

RMF

S.T.A.N.D.

Risk Management Framework

Support Through Australian Natural Disasters

Sales per square metre

Total sales for the previous 12 months by business divided by average trading area of stores 
and fulfilment centres

Simpler for Stores

Simplification of end-to-end processes for store teams, improving customer experience 
and productivity

Stock loss

The value of stock written off, wasted, stolen, cleared, marked down or adjusted from all stores 
nationally (sometimes expressed as a percentage of sales)

Total net debt

Borrowings less cash balances including debt hedging derivatives and lease liabilities

Glossary

GLOSSARY

TRIFR

UP range

Total stock loss

The value of stock written-off, wasted, stolen, cleared, marked-down or adjusted from all 

stores nationally (sometimes expressed as a percentage of sales)

Range of products sourced and curated for Woolworths Supermarkets with a high proportion 

Total Recordable Injury Frequency Rate

of premium customers

and grocery macro space relay

Upgrades

A light renewal typically involving a front-of-store upgrade, Produce/Bakery enhancement 

VOC NPS

VOC NPS is based on feedback from Everyday Rewards members. VOC NPS is the number 

of promoters (score of nine or 10) less the number of detractors (score of six or below)

(VOC)

(VOS)

Voice of Customer  

Externally facilitated survey of a sample of Woolworths Group customers where customers rate 

Woolworths Group businesses on several criteria. Expressed as the percentage of customers 

providing a rating of six or seven on a seven-point scale

Voice of Supplier  

A survey of a broad spectrum of suppliers facilitated by an external provider. The survey 

is used to provide an ongoing measure of the effectiveness of business relationships with 

the supplier community. VOS is the average of the suppliers’ rating across various attributes, 

scored as a percentage of suppliers that provided a rating of six or seven on a seven-point scale

Voice of Team  

(VOT)

Survey measuring sustainable engagement of our team members as well as their advocacy 

of Woolworths as a place to work and shop. The survey consists of nine sustainable engagement 

questions, three key driver questions and two advocacy questions 

VOT NPS

VOT NPS is a metric to assess Woolworths Team Member advocacy. VOT NPS is the 

percentage of promoters (those rating nine or 10 on a scale of 0–10) minus the percentage 

of detractors (those rating six or below on a scale of 0–10)

Other non-IFRS measures used in describing the business performance include:

•  Earnings before interest, tax, depreciation and 

•  Cash flow from operating activities before interest 

amortisation (EBITDA)

and tax 

•  Volume productivity metrics including transaction 

•  Free cash flow after equity related financing activities 

growth, items per basket and item growth

•  Trading area

excluding dividends

•  Significant items

•  Fixed assets and investments 

•  Net investment in inventory

•  Net tax balances

•  Closing trade payable days

•  Change in average prices

•  Margins including gross profit, CODB and EBIT 

•  Net assets held for sale 

•  Closing inventory days

•  Average inventory days

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Glossary

GLOSSARY

Total stock loss

TRIFR

UP range

Upgrades

VOC NPS

Voice of Customer  
(VOC)

Voice of Supplier  
(VOS)

Voice of Team  
(VOT)

VOT NPS

The value of stock written-off, wasted, stolen, cleared, marked-down or adjusted from all 
stores nationally (sometimes expressed as a percentage of sales)

Total Recordable Injury Frequency Rate

Range of products sourced and curated for Woolworths Supermarkets with a high proportion 
of premium customers

A light renewal typically involving a front-of-store upgrade, Produce/Bakery enhancement 
and grocery macro space relay

VOC NPS is based on feedback from Everyday Rewards members. VOC NPS is the number 
of promoters (score of nine or 10) less the number of detractors (score of six or below)

Externally facilitated survey of a sample of Woolworths Group customers where customers rate 
Woolworths Group businesses on several criteria. Expressed as the percentage of customers 
providing a rating of six or seven on a seven-point scale

A survey of a broad spectrum of suppliers facilitated by an external provider. The survey 
is used to provide an ongoing measure of the effectiveness of business relationships with 
the supplier community. VOS is the average of the suppliers’ rating across various attributes, 
scored as a percentage of suppliers that provided a rating of six or seven on a seven-point scale

Survey measuring sustainable engagement of our team members as well as their advocacy 
of Woolworths as a place to work and shop. The survey consists of nine sustainable engagement 
questions, three key driver questions and two advocacy questions 

VOT NPS is a metric to assess Woolworths Team Member advocacy. VOT NPS is the 
percentage of promoters (those rating nine or 10 on a scale of 0–10) minus the percentage 
of detractors (those rating six or below on a scale of 0–10)

163

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WGEA

Workplace Gender Equality Agency

'

A total store transformation focused on the overall store environment, team, range and process 

•  Fixed assets and investments 

•  Net investment in inventory

•  Net tax balances

•  Closing trade payable days

•  Change in average prices

•  Margins including gross profit, CODB and EBIT 

•  Net assets held for sale 

•  Closing inventory days

•  Average inventory days

Other non-IFRS measures used in describing the business performance include:

•  Earnings before interest, tax, depreciation and 

•  Cash flow from operating activities before interest 

amortisation (EBITDA)

and tax 

•  Volume productivity metrics including transaction 

•  Free cash flow after equity related financing activities 

growth, items per basket and item growth

•  Trading area

excluding dividends

•  Significant items

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162

Glossary

GLOSSARY

MFC

MSRDC

n.m.

NAIDOC

NDC

delivery

Pick up

RDC

Renewal

(ROFE)

RMF

Fixed charges cover ratio

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

Free cash flow

Cash flow generated by Woolworths Group after equity related financing activities including 

dividends and repayment of lease liabilities

Funds employed

Net assets employed excluding net tax balances and put option liability

Micro-fulfilment centre

Melbourne South regional distribution centre 

Not meaningful

National Aborigines and Islanders Day Observance Committee

 National distribution centre

Net assets employed

Net assets excluding net debt and other financial assets and liabilities 

Net Promoter Score (NPS) A loyalty measure based on a single question where a customer rates a business on a scale 

of zero to 10. The score is the net result of the percentage of customers providing a score of nine 

or 10 (promoters) less the percentage of customers providing a score of zero to six (detractors)

On‑demand/express 

An express or scheduled delivery service providing online orders at the customer's convenience

A service which enables collection of online shopping orders in store or at selected locations

Priority Assistance

Dedicated delivery windows for eligible vulnerable customers to ensure access to online 

delivery services

Regional Distribution Centre

efficiency (including digital)

Return on Funds Employed 

Calculated as EBIT before significant items for the previous 12 months as a percentage 

of average (opening, mid and closing) funds employed including significant items provisions

S.T.A.N.D.

Support Through Australian Natural Disasters

Risk Management Framework

Sales per square metre

Total sales for the previous 12 months by business divided by average trading area of stores 

Simpler for Stores

Simplification of end-to-end processes for store teams, improving customer experience 

and fulfilment centres

and productivity

Stock loss

The value of stock written off, wasted, stolen, cleared, marked down or adjusted from all stores 

nationally (sometimes expressed as a percentage of sales)

Total net debt

Borrowings less cash balances including debt hedging derivatives and lease liabilities

 
 
 
 
 
 
 
 
 
164

Company directory

REGISTERED OFFICE
1 Woolworths Way
Bella Vista NSW 2153
Tel: (02) 8885 0000
Web: www.woolworthsgroup.com.au

COMPANY SECRETARIES
Kate Eastoe

Michelle Hall

INVESTOR RELATIONS
Paul van Meurs

AUDITOR
Deloitte Touche Tohmatsu
225 George Street, Sydney NSW 2000
Tel: (02) 9322 7000
Web: www.deloitte.com.au

SHAREHOLDER ENQUIRIES
Link Market Services
Locked Bag A14, Sydney South NSW 1235
Web: www.linkmarketservices.com.au

For shareholders:
Tel: 1300 368 664
Email: woolworths@linkmarketservices.com.au

For team members:
Tel: 1800 111 281
Email: wow.eps@linkmarketservices.com.au

MEDIA
Woolworths Press Office
Tel: (02) 8885 1033
Email: media@woolworths.com.au

FIVE YEAR SUMMARY
The Five Year Summary is available on the Woolworths Group website.

Design Communication and Production by ARMSTRONG 

Armstrong.Studio

164

Company directory

REGISTERED OFFICE

1 Woolworths Way

Bella Vista NSW 2153

Tel: (02) 8885 0000

Web: www.woolworthsgroup.com.au

COMPANY SECRETARIES

Kate Eastoe

Michelle Hall

Paul van Meurs

AUDITOR

INVESTOR RELATIONS

Deloitte Touche Tohmatsu

225 George Street, Sydney NSW 2000

Tel: (02) 9322 7000

Web: www.deloitte.com.au

SHAREHOLDER ENQUIRIES

Link Market Services

Locked Bag A14, Sydney South NSW 1235

Web: www.linkmarketservices.com.au

Email: woolworths@linkmarketservices.com.au

For shareholders:

Tel: 1300 368 664

For team members:

Tel: 1800 111 281

Email: wow.eps@linkmarketservices.com.au

MEDIA

Woolworths Press Office

Tel: (02) 8885 1033

Email: media@woolworths.com.au

FIVE YEAR SUMMARY

The Five Year Summary is available on the Woolworths Group website.

Design Communication and Production by ARMSTRONG 
Armstrong.Studio