Transcript Analyst Presentation - WOOLWORTHS HOLDINGS LIMITED

woolworths holdings limited
february 2005
presentation to
investment analysts
woolworths holdings limited
agenda
• Highlights
• Financial review
• Operational review
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Clothing and home
Foods
Financial services
Trading space
Country Road
• Prospects
woolworths holdings limited
group highlights
•
•
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•
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Revenue up 13.9% - R6.4bn
Operating profit up 16.0% - R638m
Headline earnings per share up 16.2% - 46.7cps
Cash distribution up 42.3% - 18.5cps
Interim cover ratio down from 3.1 to 2.5 times
ROE of 27.4% (2003: 27.2%)
Financial services assets up 31% to R3.3bn
woolworths holdings limited
trading environment
• Buoyant trading conditions in SA
• Low inflation
• Lower interest rates
• Emerging market growth
• Consumer spending in Australia slowed slightly
woolworths holdings limited
income statement
Revenue
Turnover
Cost of merchandise
Gross profit
Other revenue
Expenses
Operating profit
Interest paid
Net profit before exceptional items
Exceptional items
Net profit before tax
Tax
Net profit after tax
Gross margin - on turnover
Operating margin - on revenue
100.0
Dec-04
Rm
6353.1
6016.6
-4139.4
1877.2
336.5
-1575.8
637.9
-62.0
575.9
575.9
-168.4
407.5
31.2%
10.0%
2.3
Dec-03
Rm
5579.7
5266.0
-3574.6
1691.4
313.7
-1455.1
550.0
-58.1
491.9
-5.0
486.9
-146.0
340.9
32.1%
9.9%
2.2
%chg
13.9%
14.3%
15.8%
11.0%
7.3%
8.3%
16.0%
6.7%
17.1%
18.3%
15.3%
19.5%
2.4
2.2
woolworths holdings limited
HEPS, DPS and cover
50.0
3.5
3.1
45.0
3.1
46.7
2.8
2.7
40.0
2.5
40.2
3
2.5
35.0
2.5
33.5
30.0
2
25.0
1.5
20.0
15.0
20.9
18.5
16.0
15.8
13.0
10.0
5.0
1
10.5
6.5
6.5
0.5
7.5
0.0
0
Dec-99
Dec-00
Dec-01
HEPS
Dec-02
DPS
Cover
Dec-03
Dec-04
woolworths holdings limited
balance sheet
Assets
Property, plant & equipment
Export partnerships
Inventory
Financial services assets
Accounts receivable & other
Cash
Equity and liabilities
Shareholders funds
Accounts payable & deferred tax
Borrowings - long term
Borrowings - short term
Debt: equity
Dec-04
Rm
Dec-03
Rm
1259.8
164.4
801.4
3326.2
817.7
170.9
6540.4
1145.1
177.8
684.9
2534.7
707.5
201.1
5451.1
10.0%
-7.5%
17.0%
31.2%
15.6%
-15.0%
3095.3
1916.4
500.0
1028.7
6540.4
2672.0
1798.4
980.7
5451.1
15.8%
6.6%
n/a
4.9%
49.4%
36.7%
%chg
woolworths holdings limited
cash flow
Cash inflow from trading - retail
Net interest received
Working capital movements
Increase in borrowings
Utilised by:
Tax paid
Distributions paid
Capex
Proceeds from disposals/investment income
Financial services assets
Shares issued
Dec-04
Rm
Dec-03
Rm
494.8
225.5
-118.1
407.1
1009.3
460.2
212.4
-67.5
266.2
871.3
-170.3
-221.8
-207.9
0.7
-456.4
46.4
-1009.3
-175.4
-159.2
-253.4
17.7
-341.6
40.6
-871.3
woolworths holdings limited
cash flow (cont)
cash applied to financial services assets: R456.4m
Personal
Loans
R95.7m
Visa
R57.8m
WW
Card
R302.9m
capex: R207.9m
Retail
R135.4m
Other
R13.9m
IT
R58.5m
woolworths holdings limited
return on equity/wacc
30%
25%
19.0%
20%
17.5%
16.3%
13.7%
13.7%
15%
12.4%
10%
5%
11.6%
12.9%
18.3%
23.7%
25.7%
27.4%
Jun-00
Jun-01
Jun-02
Jun-03
Jun-04
Dec-04
ROE
WACC
0%