Wrap Text
Unaudited interim group results for the 26 weeks ended 24 December 2017 and cash dividend declaration
Woolworths Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number 1929/001986/06
Share code: WHL
Bond code: WHLI
Share ISIN: ZAE000063863
Bond ISIN: ZAG000147133
('the Group' or 'the Company')
UNAUDITED INTERIM GROUP RESULTS FOR THE 26 WEEKS ENDED 24 DECEMBER 2017 AND CASH DIVIDEND DECLARATION
HIGHLIGHTS
Turnover and concession sales: +2.5% to R38.8 billion
Adjusted diluted headline earnings per share: -8.8% to 223.4 cps
Headline earnings per share: -15.0% to 206.3 cps
Earnings per share: -246.6% to -505.9 cps
Interim dividend per share: -18.4% to 108.5 cps
Return on equity*: 20.1% from 22.8%
* Impairment added back
COMMENTARY
Group sales for the first 26 weeks of the 2018 financial year increased by 2.5% to R38.8 billion over
the prior period.
Woolworths South Africa's overall performance was slightly ahead of last year, due to a strong
result from Food and Financial Services.
Woolworths Fashion, Beauty and Home
Woolworths Fashion, Beauty and Home was impacted by the underperformance of womenswear,
whilst other categories performed in line with a difficult market. Overall sales decreased by 0.2%, with
price movement of 0.7% and comparable store sales were 3.4% lower. Gross profit margin was
impacted by higher womenswear markdowns, declining by 1.1% to 46.6%.
Store costs were well controlled, increasing by 6.6% in total (and by 2.3% in comparable stores) and
other operating costs decreased by 4.3%. Adjusted operating profit declined by 13.1% to R1 038
million. Net retail space grew by 3.6%.
Woolworths Food
Woolworths Food sales increased by a market-leading 9.4%, with comparable store sales up 5.3%.
Price movement of 4.4% supported positive volume growth. Gross profit margin was maintained at
25.0%.
Store costs increased by 9.0%, as a result of new space, with comparable store cost growth of 4.1%.
Other operating costs were 1.3% higher than last year. Adjusted operating profit increased by 15.9%
to R1 065 million. Net retail space grew by 6.8%.
Woolworths Financial Services
The Woolworths Financial Services debtors book reflected positive year-on-year growth of 4.1%, with
strong growth in the credit card portfolio. The annualised impairment rate for the six months ended 31
December 2017 reduced to 5.0% from 5.9% in the prior period.
David Jones
Sales for the 26 weeks were 3.3% lower on a comparable basis and 3.8% lower in total. Particularly
difficult trading conditions were experienced in the first quarter, compounded by significant
transformation to systems and structures through this period. Sales improved through the second
quarter and particularly over the last six weeks of the period. Gross profit margin increased by 1.2% to
40.7%.
Net trading space reduced by 2.2%, in line with our strategy of improving space utilisation. The cost
annualisation of new stores, as well as costs relating to the new merchandise system and other
transformational initiatives, resulted in an increase in operating costs of 9.7%.
The very challenging first quarter, and the increase in the cost base ahead of expected benefits,
resulted in adjusted operating profit declining by 37.7% to A$66 million.
The re-assessment of the carrying value of the David Jones assets has resulted in the recognition of
an impairment charge of A$712.5 million (R6 927 million), reflecting the cyclical downturn and
structural changes that have impacted performance across the Australian retail sector, as well as poor
or delayed execution in certain of our key initiatives.
Country Road Group
Country Road Group sales increased by 5.2%, including Politix, with sales in comparable stores 1.0%
lower, in line with the market. Gross profit margin improved by 3.1% to 63.7%, as a result of higher
full-priced merchandise sales and lower generic discounting, as well as from sourcing benefits.
Trading space reduced by a net 3.8%, with the closure of end of lease under-performing stores.
Operating costs increased by 9.5%, mainly as a result of Politix, with comparable store costs well
controlled, increasing by 2.7%. Adjusted operating profit increased by 15.7% to A$59 million.
Group earnings
Headline earnings per share (HEPS) and adjusted diluted HEPS, which exclude the impairment, as
well as last year's A$172.6 million profit on disposal of the David Jones Market Street property,
decreased by 15.0% and 8.8% respectively. Earnings per share, which includes both the impairment
charge and last year's property disposal, decreased by 246.6%.
OUTLOOK
In South Africa, trading conditions are expected to remain challenging in the second half, but should
then improve, as the impact of the new political leadership resonates through the economy and
consumer sentiment. We are confident that our Food business will continue to grow ahead of the
market, and that recent changes made to design and buying structures in Fashion, Beauty and Home
are expected to improve the womenswear offering.
In Australia, growth and consumer sentiment is also expected to improve slowly on the back of
improving economic indicators, including a strengthening labour market, although high levels of
promotional activity will continue. We will underpin this with a cost and efficiency review, as we further
consolidate our Australian operations. The Board remains committed to the ongoing transformation of
David Jones, and will continue to invest in the future of the business.
Any reference to future financial performance included in this statement has not been reviewed and
reported on by the Group's external auditors, and does not constitute an earnings forecast.
S N Susman I Moir
Chairman Group Chief Executive Officer
Cape Town, 21 February 2018
DIVIDEND DECLARATION
Notice is hereby given that the Board of Directors has declared an interim gross cash dividend per
ordinary share ('dividend') of 108.5 cents (86.8 cents net of dividend withholding tax) for the 26 weeks
ended 24 December 2017, a 18.4% decrease on the prior period's 133.0 cents per share. The
dividend has been declared from reserves and therefore does not constitute a distribution of
'contributed tax capital' as defined in the Income Tax Act, 58 of 1962. A dividend withholding tax of
20% will be applicable to all shareholders who are not exempt.
The issued share capital at the declaration date is 1 048 048 817 ordinary shares.
The salient dates for the dividend will be as follows:
Last day of trade to receive a dividend Tuesday, 13 March 2018
Shares commence trading 'ex' dividend Wednesday, 14 March 2018
Record date Friday, 16 March 2018
Payment date Monday, 19 March 2018
Share certificates may not be dematerialised or rematerialised between Wednesday, 14 March 2018
and Friday, 16 March 2018, both days inclusive. Ordinary shareholders who hold dematerialised
shares will have their accounts at their CSDP or broker credited or updated on Monday, 19 March
2018. Where applicable, dividends in respect of certificated shares will be transferred electronically to
shareholders' bank accounts on the payment date. In the absence of specific mandates, dividend
cheques will be posted to shareholders.
Chantel Reddiar
Group Company Secretary
Cape Town, 21 February 2018
INTERIM GROUP STATEMENT OF COMPREHENSIVE INCOME
52 weeks 26 weeks 26 weeks
to 25 Jun to 24 Dec to 25 Dec
2017 2017 2016 %
Rm Notes Rm Rm change
69 451 Revenue 36 270 35 262 2.9
74 273 Turnover and concession sales 38 768 37 819 2.5
(6 862) Concession sales (3 471) (3 586) (3.2)
67 411 Turnover 35 297 34 233 3.1
40 739 Cost of sales 20 914 20 329 2.9
26 672 Gross profit 14 383 13 904 3.4
1 944 Other revenue 931 988 (5.8)
22 410 Expenses 12 181 11 182 8.9
16 233 Store costs 8 688 8 167 6.4
6 177 Other operating costs 3 493 3 015 15.9
6 206 Operating profit 3 133 3 710 (15.6)
1 420 Profit on sale of property in Sydney, net of impairment - 1 420 (100.0)
1 762 Profit on sale of property - 1 762 (100.0)
342 Impairment due to sale of property - 342 (100.0)
- Impairment due to re-assessment of David Jones assets 3 6 927 –
96 Investment income 42 41 2.4
1 256 Finance costs 588 660 (10.9)
6 466 (Loss)/profit before earnings from joint ventures and associate (4 340) 4 511 >(100)
260 Earnings from joint ventures 149 134 11.2
6 726 (Loss)/profit before tax (4 191) 4 645 >(100)
1 278 Tax 669 1 328 (49.6)
5 448 (Loss)/profit for the period (4 860) 3 317 >(100)
Other comprehensive income:
Amounts that may be reclassified to profit or loss
(123) Fair value adjustments on financial instruments, after tax (121) (140)
(3 087) Exchange differences on translation of foreign subsidiaries (102) (2 363)
Amounts that may not be reclassified to profit or loss
15 Post-retirement medical benefit liability-actuarial gain, after tax - –
(3 195) Other comprehensive income for the period (223) (2 503)
2 253 Total comprehensive (loss)/income for the period (5 083) 814
5 448 (Loss)/profit attributable to: (4 860) 3 317
5 446 Shareholders of the parent (4 861) 3 315
2 Non-controlling interests 1 2
2 253 Total comprehensive (loss)/income attributable to: (5 083) 814
2 251 Shareholders of the parent (5 084) 813
2 Non-controlling interests 1 1
Reconciliation of headline earnings
5 446 Basic (loss)/earnings attributable to shareholders of the parent (4 861) 3 315 >(100)
Net loss/(profit) on disposal of property, plant and equipment and
(1 752) intangible assets 20 (1 758)
382 Impairment of property, plant and equipment and intangible assets 6 927 350
(31) Tax impact of adjustments (104) 423
4 045 Headline earnings 1 982 2 330 (14.9)
(11) Unrealised foreign exchange losses/(gains) 19 (6)
226 Relocation, onerous leases, transaction and swap close-out costs 227 52
(60) Tax impact of adjustments (69) (11)
(164) Tax base adjustments on David Jones assets at acquisition - –
4 036 Adjusted headline earnings 2 159 2 365 (8.7)
566.7 (Loss)/earnings per share (cents) 2 (505.9) 345.1 >(100)
420.9 Headline earnings per share (cents) 206.3 242.6 (15.0)
420.0 Adjusted headline earnings per share (cents) 224.7 246.2 (8.7)
563.7 Diluted (loss)/earnings per share (cents) 2 (503.1) 343.3 >(100)
418.7 Diluted headline earnings per share (cents) 205.1 241.3 (15.0)
417.7 Adjusted diluted headline earnings per share (cents) 223.4 244.9 (8.8)
961.7 Number of shares in issue (millions) 960.6 961.1 (0.1)
961.0 Weighted average number of shares in issue (millions) 960.9 960.5 0.0
INTERIM GROUP STATEMENT OF FINANCIAL POSITION
At At Restated**
25 Jun 24 Dec At 25 Dec
2017 2017 2016
Rm Notes Rm Rm
ASSETS
34 706 Non-current assets 27 901 35 208
13 846 Property, plant and equipment 3 13 556 13 814
- Investment properties - 78
19 595 Intangible assets 3 13 046 19 895
1 015 Investment in joint ventures 1 064 1 025
- Participation in export partnerships - 6
65 Fair value lease adjustment 62 71
42 Other loans 50 38
3 Derivative financial instruments 6 - 21
140 Deferred tax 123 260
10 287 Current assets 12 147 13 313
6 990 Inventories 8 146 7 999
1 218 Trade and other receivables 1 553 1 552
40 Derivative financial instruments 6 35 100
252 Tax 241 937
1 787 Cash and cash equivalents 2 172 2 725
44 993 TOTAL ASSETS 40 048 48 521
EQUITY AND LIABILITIES
19 066 TOTAL EQUITY 12 186 18 959
19 038 Equity attributable to shareholders of the parent 12 172 18 931
28 Non-controlling interests 14 28
15 336 Non-current liabilities 15 298 15 087
12 137 Interest-bearing borrowings 12 323 11 578
1 980 Operating lease accrual and fair value lease adjustment 1 731 2 052
386 Post-retirement medical benefit liability 394 398
156 Provisions 275 190
19 Derivative financial instruments 6 8 –
658 Deferred tax 567 869
10 591 Current liabilities 12 564 14 475
8 262 Trade and other payables 9 457 9 473
825 Provisions 1 002 801
114 Operating lease accrual and fair value lease adjustment 114 64
176 Derivative financial instruments 6 306 148
26 Tax 175 1 387
1 188 Overdrafts and interest-bearing borrowings 1 510 2 602
25 927 TOTAL LIABILITIES 27 862 29 562
44 993 TOTAL EQUITY AND LIABILITIES 40 048 48 521
1 980 Net asset book value -per share (cents) 1 267 1 970
GROUP ANALYSIS
44 993 Total assets 40 048 48 521
12 680 Woolworths* 13 682 14 265
24 217 David Jones 18 617 25 556
7 044 Country Road Group 6 647 7 660
1 007 Woolworths Financial Services 1 056 1 018
45 Treasury 46 22
6 990 Inventories 8 146 7 999
3 550 Woolworths* 3 802 3 728
2 191 David Jones 3 166 2 831
1 249 Country Road Group 1 178 1 440
25 927 Total liabilities 27 862 29 562
5 893 Woolworths* 7 313 7 023
6 703 David Jones 5 964 6 573
1 586 Country Road Group 1 297 1 786
11 745 Treasury 13 288 14 180
4 697 Approved capital commitments 3 176 2 023
2 035 Woolworths* 1 285 1 008
2 157 David Jones 1 511 728
505 Country Road Group 380 287
* Includes Woolworths Fashion, Beauty and Home, Woolworths Food and Woolworths Logistics.
** Certain comparative amounts shown do not correspond to the 2016 interim results and reflect adjustments made. Refer to note 5.1.
INTERIM GROUP STATEMENT OF CASH FLOWS
52 weeks 26 weeks 26 weeks
to 25 Jun to 24 Dec to 25 Dec
2017 2017 2016
Rm Notes Rm Rm
Cash flow from operating activities
8 177 Cash inflow from trading 4 301 4 803
(615) Working capital movements (17) (926)
7 562 Cash generated by operating activities 4 284 3 877
96 Investment income received 42 41
(1 216) Finance costs paid (596) (655)
(1 701) Tax paid (548) (1 073)
4 741 Cash generated by operations 3 182 2 190
223 Dividends received from joint ventures 100 87
(3 015) Dividends paid to ordinary shareholders (1 735) (1 733)
1 949 Net cash inflow from operating activities 1 547 544
Cash flow from investing activities
(2 552) Net investment in property, plant and equipment and intangible assets (1 558) (1 228)
3 677 Proceeds on disposal of property in Sydney - 3 677
(711) Acquisition of subsidiary, net of cash acquired - (703)
8 Other (6) 4
422 Net cash (outflow)/inflow from investing activities (1 564) 1 750
Cash flow from financing activities
(39) Settlement of share-based payments through share purchase 4 (107) (37)
(2) Share purchase costs (1) –
(14) Finance lease payments (8) (5)
1 900 Borrowings raised* 2 042 900
(3 852) Borrowings repaid* (2 000) (1 951)
(2 007) Net cash outflow from financing activities (74) (1 093)
364 (Decrease)/increase in cash and cash equivalents (91) 1 201
1 497 Net cash and cash equivalents at the beginning of the period 1 761 1 497
(100) Effect of foreign exchange rate changes (5) 27
1 761 Net cash and cash equivalents at the end of the period 1 665 2 725
GROUP ANALYSIS
7 562 Cash generated by operating activities 4 284 3 877
5 050 Woolworths 2 932 2 542
1 075 David Jones 480 857
1 437 Country Road Group 872 478
Additions to property, plant and equipment and intangible
3 344 assets 1 317 1 900
1 244 Woolworths 619 654
996 David Jones 587 345
336 Country Road Group 111 206
768 Country Road Group - Politix acquisition - 695
* Comparative information has been restated to reflect the reclassification of R3 364 million between Borrowings raised and Borrowings repaid,
as a result of the revolving credit facility now being disclosed on a net basis.
INTERIM GROUP STATEMENT OF CHANGES IN EQUITY
Total Total Total
52 weeks Share- Non- 26 weeks Share- Non- 26 weeks
to 25 Jun holders of controlling to 24 Dec holders of controlling to 25 Dec
2017 the parent interests 2017 the parent interests 2016
Rm Notes Rm Rm Rm Rm Rm Rm
Shareholders'
interest at the
beginning of the
19 853 period 19 038 28 19 066 19 826 27 19 853
Movements for
the period:
5 448 (Loss)/profit for the period (4 861) 1 (4 860) 3 315 2 3 317
Other comprehensive
(3 195) income (223) - (223) (2 502) (1) (2 503)
Total comprehensive (loss)/
2 253 income for the period (5 084) 1 (5 083) 813 1 814
Shares issued,
138 net of costs 4 12 - 12 104 - 104
Share-based
payments, including
(163) settlements and costs (74) - (74) (79) - (79)
- Transfer of reserves 15 (15) - - - –
Dividends to ordinary
(3 015) shareholders (1 735) - (1 735) (1 733) - (1 733)
Shareholders'
interest at the
19 066 end of the period 12 172 14 12 186 18 931 28 18 959
313.0 Dividend per ordinary share (cents) 108.5 133.0
1.34 Dividend cover (based on headline earnings) 1.90 1.80
INTERIM SEGMENTAL ANALYSIS
52 weeks 26 weeks 26 weeks
to 25 Jun to 24 Dec to 25 Dec
2017 2017 2016 %
Rm Notes Rm Rm change
REVENUE
67 411 Turnover 35 297 34 233 3.1
13 894 Woolworths Fashion, Beauty and Home 7 223 7 238 (0.2)
27 075 Woolworths Food 14 488 13 256 9.3
597 Woolworths Logistics 332 291 14.1
15 030 David Jones 7 597 8 018 (5.3)
10 815 Country Road Group 5 657 5 430 4.2
2 040 Other revenue and investment income 973 1 029 (5.4)
19 Woolworths Fashion, Beauty and Home 7 6 16.7
124 Woolworths Food 68 58 17.2
2 139 David Jones 1 116 1 110 0.5
52 Country Road Group 19 19 0.0
69 Treasury 29 24 20.8
(363) Intragroup 9 (266) (188) 41.5
69 451 Total Group 36 270 35 262 2.9
GROSS PROFIT
6 650 Woolworths Fashion, Beauty and Home 3 367 3 454 (2.5)
6 794 Woolworths Food 3 616 3 313 9.1
6 506 David Jones 3 684 3 749 (1.7)
6 520 Country Road Group 3 599 3 287 9.5
202 Intragroup 9 117 101 15.8
26 672 Total Group 14 383 13 904 3.4
PROFIT/(LOSS) BEFORE TAX
2 168 Woolworths Fashion, Beauty and Home 1 038 1 195 (13.1)
1 977 Woolworths Food 1 065 919 15.9
259 Woolworths Financial Services 149 134 11.2
1 279 David Jones 663 1 078 (38.5)
958 Country Road Group 602 517 16.4
(1 096) Treasury (535) (572) (6.5)
5 545 Total Group-adjusted 2 982 3 271 (8.8)
1 181 Adjustments (7 173) 1 374
- Impairment due to re-assessment of David Jones assets 3 (6 927) –
(250) Relocation, onerous leases, transaction and swap close-out costs (227) (52)
11 Unrealised foreign exchange (losses)/gains (19) 6
1 762 Profit on sale of property in Sydney - 1 762
(342) Impairment due to sale of property - (342)
6 726 Total Group (4 191) 4 645 >(100)
2 177 Woolworths Fashion, Beauty and Home 1 021 1 200 (14.9)
1 979 Woolworths Food 1 063 920 15.5
259 Woolworths Financial Services 149 134 11.2
2 502 David Jones (6 491) 2 493 >(100)
939 Country Road Group 602 498 20.9
(1 130) Treasury (535) (600) (10.8)
NOTES
1. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION
The interim Group financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRS) and interpretations adopted by the International Accounting Standards Board (IASB), IAS 34: Interim
Financial Reporting, the South African Institute of Chartered Accountants (SAICA) Financial Reporting Guides as issued
by the Accounting Practices Committee, Financial Pronouncements as issued by the Financial Reporting Standards Council
(FRSC), the requirements of the Companies Act of South Africa and the JSE Limited Listings Requirements.
The interim Group financial statements have been prepared under the supervision of the Group Finance Director,
Reeza Isaacs CA(SA) and are the full responsibility of the directors.
Accounting policies applied in the preparation of these interim Group financial statements are consistent with those
applied in the preparation of the Group Annual Financial Statements for the 52-week period ended 25 June 2017, and
are consistent with the prior period, except for the changes in accounting policy disclosed in note 5. The interim Group
financial statements have been prepared on the historical cost and going concern bases, except where otherwise
indicated. The presentation and functional currency is the South African rand, rounded to the nearest million, except
where otherwise indicated.
2. EARNINGS PER SHARE
The difference between earnings per share and diluted earnings per share is due to the impact of unexercised options
under the Group's share incentive schemes (refer to note 4).
3. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
The Group acquired property, plant and equipment at a fair value of R759 million (2016: R976 million) and acquired
intangible assets at a fair value of R558 million (2016: R924 million).
As a result of the cyclical downturn and structural changes that have impacted performance across the Australian
retail sector, and the impact of poor or delayed execution in certain key initiatives within David Jones, the carrying
value of property, plant and equipment and intangible assets within David Jones was reassessed during the period.
Consequently, an impairment charge of R6 927 million (A$712.5 million) relating to goodwill and other assets was
recognised.
4. ISSUE AND PURCHASE OF SHARES
519 502 (2016: 103 152) previously purchased ordinary shares totalling R34 million (2016: R7 million) were allocated to employees
in terms of the Group's Restricted Share Plan. 201 023 (2016: 1 328 464) ordinary shares totalling R12 million (2016: R104 million)
were issued and allocated to employees in terms of the Group's other share incentive schemes.
1 776 791 (2016: 432 469) ordinary shares totalling R107 million (2016: R37 million) were purchased from the market by
Woolworths Proprietary Limited for the purposes of share incentive schemes and are held as treasury shares by the Group.
5. CHANGE IN ACCOUNTING POLICY
5.1 IFRS Interpretations Committee (IFRIC) restatement
The following IFRIC restatement was applied to the audited annual financial statements for the year ending 25 June 2017.
Historically, the Group has assessed deferred tax on indefinite life intangible assets using the assumption that the value
will be recovered through sale, rather than use, as these assets are not amortised.
In November 2016, the IFRS Interpretations Committee (IFRIC) issued a final agenda decision, clarifying that an intangible
asset with an indefinite useful life is subject to consumption and therefore not a non-depreciable asset in terms of
paragraph 51B of IAS 12: Income Taxes. IFRIC therefore concluded that the assumption of sale could not be presumed in
calculating the deferred tax liability on an intangible asset.
As a consequence of this decision, the Group has amended its accounting policy to comply with the revised guidance.
The impact of the restatement is to increase goodwill by R2 004 million (A$199 million) as at 25 December 2016, with a
corresponding credit to deferred tax, split as follows:
Dec 2016
Deferred Deferred
tax tax
Goodwill assets liabilities
Rm Rm Rm
David Jones 1 764 993 771
Country Road Group 240 149 91
Total 2 004 1 142 862
5.2 New standards
The adoption of certain new standards, which became effective in the current period, has resulted in minor changes to
accounting policies and disclosure, none of which have a material impact on the financial position or performance of
the Group.
The Group has undertaken initial assessments of the financial impact of IFRS 9: Financial Instruments, IFRS 15: Revenue from
Contracts with Customers and IFRS 16: Leases and have identified the following, which will impact on the Group's financial
results in the periods these standards are adopted:
IFRS 9: The standard is effective for financial periods beginning on or after 1 January 2018. The measurement of provisions
against receivables will be revised to comply with the expected credit loss method. The Group continues to assess the
potential impact on its financial statements in respect of the application of IFRS 9.
IFRS 15: The standard is effective for financial periods beginning on or after 1 January 2018. There will be a change in the
classification of statement of comprehensive income disclosure; however it is anticipated that any reclassification will not
have a material impact on operating profit. The Group continues to assess the potential impact on its financial statements
in respect of the application of IFRS 15.
IFRS 16: The standard is effective for financial periods beginning on or after 1 January 2019. The standard is expected to
have a material impact due to the significant number of leases, and will result in changes to the statement of financial
position, whereby a right-of-use asset and lease liability will be recognised. Changes to the statement of comprehensive
income will result in the current operating lease costs being replaced by an amortisation of the right-of-use asset
and associated finance costs. The Group continues to assess the impact on its financial statements in respect of the
application of IFRS 16.
6. FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying value of trade and other receivables, trade and other payables and borrowings approximate their fair values.
In terms of IFRS 13: Fair value measurement, the Group's borrowings are measured at amortised cost and its derivative
financial instruments at fair value. These are determined to be level two under the fair value hierarchy. Derivatives are
valued using valuation techniques with market observable inputs with derivatives being mainly in respect of interest
rate swaps and foreign exchange forward contracts. The most frequently applied valuation technique include
forward pricing and swap models, using present value calculations. The models incorporate various inputs, including
the credit quality of counterparties, foreign exchange spot and forward rates, interest rate curves and forward rate
curves of the underlying index.
7. CONTINGENT LIABILITIES
Group companies are party to legal disputes and investigations that have arisen in the ordinary course of business.
Whilst the outcome of these matters cannot readily be foreseen, the directors do not expect them to have any material
financial effect.
8. BORROWING FACILITIES
Unutilised banking and debt facilities amount to R11 033 million (2016: R13 089 million) as follows:
2017 2016
Rm Rm
Committed 10 233 12 289
Uncommitted 800 800
Total 11 033 13 089
R1 750 million bonds were issued under the DMTN programme, which is a further source of funding to the Group. The
DMTN programme that was approved by the JSE on 17 March 2017 is guaranteed by Woolworths Proprietary Limited
and will be used to raise debt on an ongoing basis.
9. RELATED-PARTY TRANSACTIONS
The Group entered into related-party transactions, the substance of which is disclosed in the Group's 2017 Annual
Financial Statements. Intragroup adjustments relate to the sale of concession goods between segments and supply
chain distribution adjustments.
10. EVENTS SUBSEQUENT TO THE REPORTING DATE
No event material to the understanding of these interim Group financial statements has occurred between the end
of the financial period and the date of approval.
11. APPROVAL OF INTERIM GROUP FINANCIAL STATEMENTS
The interim Group financial statements were approved by the Board of Directors on 21 February 2018.
12. AUDIT OPINION
These interim Group financial statements have not been reviewed or audited.
AVAILABILITY
The interim results presentation, which will be presented to stakeholders today at 07h30, will be made available on the Company's
website www.woolworthsholdings.co.za following this announcement.
DIRECTORATE AND STATUTORY INFORMATION
NON-EXECUTIVE DIRECTORS REGISTERED ADDRESS
Simon Susman (Chairman), Patrick Allaway (Australian), Woolworths House, 93 Longmarket Street,
Zarina Bassa, Tom Boardman (Lead Independent Director), Cape Town, 8001
Hubert Brody, Andrew Higginson (British), PO Box 680, Cape Town, 8000
Gail Kelly (Australian), Nombulelo Moholi,
Lord Rose (British) REGISTRATION NUMBER
1929/001986/06
EXECUTIVE DIRECTORS
Ian Moir (Group Chief Executive Officer) (Australian), TAX NUMBER
John Dixon (British), Reeza Isaacs (Group Finance Director), 9300/149/71/4
Sam Ngumeni, Zyda Rylands
JSE SPONSOR
GROUP COMPANY SECRETARY Rand Merchant Bank (A division of FirstRand Bank Limited)
Chantel Reddiar
TRANSFER SECRETARIES
SHARE CODE Computershare Investor Services Proprietary Limited
WHL 15 Biermann Avenue, Rosebank, 2196
BOND CODE
WHLI
SHARE ISIN
ZAE000063863
BOND ISIN
ZAG000147133
Date: 22/02/2018 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.