27 August 2025 Woolworths Group 2025 Full Year Results For the 52 weeks ended 29 June 2025 Amanda Bardwell, Managing Director and CEO Stephen Harrison, CFO For personal use only Contents We create better experiences together for a better tomorrow 2 Woolworths Group Full Year Results 2025 For personal use only 4 F25 Group summary Amanda Bardwell 19 Group financialresults and capital management Stephen Harrison 30 Strategy update, current trading and outlook Amanda Bardwell Woolworths Group Full Year Results ...

Financial Data and Key Metrics Changes - Sales decreased 4% to $445.9 million, slightly below expectations due to cautious spending from consumers and retail partners [35][36] - Adjusted net income decreased 7% to $55.2 million, with adjusted net income per share down 6% to $0.66 [46][56] - Adjusted gross profit decreased 4% to $257.6 million, representing 57.8% of adjusted sales, a slight increase from 57.7% in the prior year [45][46] Business Line Data and Key Metrics Changes - Drinkware sales declined 4% to $236.4 million, reflecting a challenging U.S. market and temporary inventory constraints [36][49] - Coolers and equipment sales decreased 3% to $200.6 million, with growth in hard coolers offset by a decline in soft coolers [36][37] - Bags business gained traction, with significant opportunities identified in the bags and packs market [36][12] Market Data and Key Metrics Changes - International sales grew 2% to $78.1 million, representing approximately 18% of total sales, with Europe showing strong growth [42][43] - U.S. wholesale channel sales decreased 7% to $197.3 million, driven by cautious ordering patterns from retail partners [39][40] - Direct-to-consumer sales decreased 1% to $248.6 million, accounting for approximately 56% of total sales [37][38] Company Strategy and Development Direction - The company is focused on product innovation, with plans to exceed the target of launching 30 new products in the fiscal year [8][9] - A strategic partnership with Fanatics is set to expand the company's presence in sports, offering team-colored drinkware and hard coolers [19][20] - The company is transforming its supply chain to reduce exposure to U.S. tariffs, aiming for less than 5% of total cost of goods sold to be affected by tariffs on goods sourced from China by year-end [29][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainty and cautious behavior from consumers but expressed confidence in long-term sustainable growth [6][31] - The company is optimistic about the growth potential in international markets, particularly in Europe and Japan [16][17] - Management expects a modest adjustment to top-line expectations, reflecting a prolonged recovery in the U.S. Drinkware market [31][49] Other Important Information - The company repurchased 745,000 shares for $23 million as part of a $450 million share repurchase authorization [47][48] - Inventory decreased 10% year-over-year to $342.1 million, reflecting strategic management of inventory purchases [48] - The company expects full-year sales to be flat to up 2% compared to the previous fiscal year [49][50] Q&A Session Summary Question: Expectations between volume and price in the second half of the year - Management indicated that pricing actions were minor and that volume would be the primary driver of growth, with confidence in international business and innovation in hard coolers and bags [60][64] Question: Ability to chase inventory for the Camino Tota - Management expressed excitement about the bags business and plans to continue investing in capabilities and innovation, with a focus on sustainable long-term growth [65][69] Question: Opportunity for recent innovations to offset lower productivity levels - Management highlighted strong innovation and expansion in product offerings, with expectations for growth in the Drinkware category as supply chain constraints ease [74][76] Question: Sell-through versus sell-in dynamics - Management noted that sell-through outpaced sell-in in the U.S., indicating healthy inventory levels and strong consumer demand internationally, despite some caution from wholesale partners [83][86] Question: Long-term gross margins outlook - Management acknowledged uncertainties related to tariffs but emphasized ongoing efforts to drive product cost efficiencies and the potential for improved margins as the Drinkware category returns to growth [88][90]

Financial Data and Key Metrics Changes - Revenue increased by 26% year over year to $592 million, driven by solid progress across 46 systems in deployment and expansion of operational systems [11][12] - Net loss for the third quarter was $32 million compared to a loss of $27 million in the previous year [11] - Adjusted EBITDA was $45 million, significantly up from $3 million in the previous year [11] - Backlog remained strong at $22.4 billion, slightly down from $22.7 billion last quarter due to revenue recognized [11] Business Line Data and Key Metrics Changes - Software revenue more than doubled year over year to $8.1 million, while operational services revenue grew 54% year over year to $24.9 million [13] - System gross margin showed significant year-over-year improvement due to strong cost control and project execution [13] Market Data and Key Metrics Changes - The company processed over 6.5 million cases in a single day, indicating strong operational throughput [5] - Customer response to the next generation storage structure has been very positive, with projects signed in the fiscal third quarter [9] Company Strategy and Development Direction - The company is focused on driving innovation across its technology stack, including the introduction of a next generation storage structure that increases storage density and reduces on-site assembly parts by over 90% [8][9] - The new structure is expected to enhance scalability and accelerate deployment across various supply chain aspects [8] - The company aims to unlock higher margins and long-term value creation through the new storage structure [9] Management's Comments on Operating Environment and Future Outlook - Management anticipates an adjustment in the timing of several previously planned deployments to support the transition to the next generation storage structure, which may moderate growth in the near term [19] - For fiscal year 2025, the company expects revenue between $590 million and $610 million and adjusted EBITDA between $45 million and $49 million [20] Other Important Information - The company has a healthy balance sheet with cash and equivalents of $778 million, down from $955 million in the previous quarter [14] - The transition to the new storage structure is expected to allow for faster scaling over time [19] Q&A Session Summary Question: Can you quantify the next generation storage technology in terms of installation times and retrofit opportunities? - Management does not expect Walmart to perform retrofits but believes the new system can run alongside the old structure, allowing for more efficient use of space [25][26] Question: What is the expected growth trajectory for new starts? - New starts are expected to step up again now that the design is commercially available, with a historical average of mid to high single-digit new starts [86] Question: What are the implications of the new storage system on customer acquisition? - The new structure is expected to accelerate new customer acquisition, with the highest level of customer dialogue ever [92] Question: How will the new storage structure impact backlog and installation timelines? - All new starts this quarter are associated with the next generation structure, and installation is expected to begin mid fiscal year 2026 [50][51] Question: What is the outlook for the ASR portion of the business? - Development revenues for ASR were up sequentially, and this level is expected to be maintained for the next couple of quarters [100][101]

Financial Performance - Net Sales grew by 2.9% to $366.7 million in 2Q'25[15, 67] - Branded Salty Snacks Net Sales increased by 5.4%[15, 22, 68] - Adjusted EBITDA decreased by 2.0% to $48.7 million[15, 20, 66, 67] - Adjusted EPS decreased by 10.5% to $0.17[15, 20, 66, 67] - Adjusted Gross Profit increased by 9.0% to $146.1 million, with a margin of 39.8% of Net Sales, a 220 bps expansion[15, 67, 68, 99] Market Share and Volume Growth - The company achieved its 8th consecutive quarter of volume share growth in the Salty Snacks Category[15] - The company holds a 5.7% volume share and a 4.3% dollar share in the Salty Snacking category[29] - Retail volume for Power Four Brands increased by 6.3%, leading to a 5.7% increase in retail sales dollars[31] Strategic Initiatives - The company is optimizing its manufacturing network by closing the Grand Rapids plant, reducing the footprint to 7 primary plants[16] - The company anticipates approximately 6% productivity savings in 2025 as part of its supply chain transformation[18] - The company is updating its FY25 outlook, expecting Organic Net Sales to grow by 2.5% or better and Adjusted EBITDA to increase by 7% to 10%[15, 93]

Financial Data and Key Metrics Changes - For the first quarter, net sales from continuing operations were $2.6 billion, a 7% decrease compared to the previous year, primarily due to store optimization activities [25] - Comparable store sales declined by 60 basis points during the quarter, excluding locations closed which generated $51 million in liquidation sales [25] - Gross profit from continuing operations was $1.11 billion, representing 42.9% of net sales, resulting in a gross margin contraction of 50 basis points year-over-year [28] - Adjusted diluted loss per share from continuing operations was $0.22 compared to earnings per share of $0.33 in the prior year [30] - Free cash flow was negative $198 million, compared to negative $49 million in the prior year, influenced by cash expenses related to store optimization and additional inventory investments [30] Business Line Data and Key Metrics Changes - The Pro business grew in the low single-digit range, with eight consecutive weeks of positive comparable sales growth in the U.S. [5][26] - The DIY channel declined in the low single-digit range, indicating ongoing challenges in that segment [27] - Strength was observed in categories such as batteries, wipers, and fluids and chemicals [27] Market Data and Key Metrics Changes - Approximately 75% of the store footprint is now concentrated in markets where the company holds the number one or two position based on store density [8] - The company plans to open more than 100 new stores over the next three years to capture share in a total addressable market exceeding $150 billion [8] Company Strategy and Development Direction - The company is focused on enhancing operational performance through strategic pillars of merchandising, supply chain, and stores [8] - A new assortment framework has been piloted to improve parts coverage at the store level, leading to an estimated uplift of nearly 50 basis points in comparable sales growth in targeted markets [10] - The company aims to establish 60 market hubs by mid-2027 to strengthen its competitive position [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating through a volatile environment due to the aging vehicle fleet and nondiscretionary nature of auto parts spending [7] - The company reaffirmed its full-year 2025 guidance, considering the impacts of tariffs and planned mitigation strategies [6][30] - Management acknowledged the challenges in the DIY segment but emphasized efforts to improve customer engagement and service levels [23] Other Important Information - The company is on track to close 12 distribution centers this year, with six completed to date, aiming to operate 12 large DCs by the end of 2026 [15] - The company has visibility to greater than 50 basis points of annualized cost reductions expected to start flowing in the second half of the year [13] Q&A Session Summary Question: Can you provide insights on the comp expectations for DIY versus DIFM? - Management indicated that DIFM is expected to drive performance while DIY remains pressured, with no significant changes in trends observed [42][44] Question: How do you view the guidance regarding gross margin and SG&A? - Management confirmed that gross profit growth will be the main driver of operating income, with SG&A expected to decrease year-over-year due to store closures and productivity improvements [48][49] Question: What are the expectations for non-GAAP adjustments for the rest of the year? - Management noted that while they are not guiding GAAP specifically, they expect to see a significant portion of cash expenses related to store optimization already accounted for [103] Question: How is the company managing tariff impacts on pricing? - Management explained that they are pushing back on cost increases from vendors and exploring alternative sources of supply, with a blended tariff rate of about 30% currently in effect [66][68]

Summary of Conference Call Company Overview - The conference call pertains to **Stanley Black & Decker**, a company involved in tools and outdoor products, discussing its recent performance and strategic direction. Key Points and Arguments Financial Performance - The company reported **organic year-over-year growth** and **margin expansion** in Q1, indicating progress in its transformation efforts [1] - The impact of tariffs on the company was initially estimated at **$1.7 billion**, which has now been reduced to an annualized range of **$500 to $600 million**, reflecting a positive shift in the trade environment [2][3] - The anticipated headwind from tariffs has decreased from **75 cents** to approximately **40 cents** per share, indicating improved financial conditions [2] Strategic Initiatives - The company is focused on achieving **35% plus gross margins** and is committed to a growth culture [5] - A significant transformation in the supply chain has been implemented to enhance productivity and efficiency, which is expected to yield long-term benefits [6][9] - The organizational structure has shifted to focus on brand management, allowing for better alignment with customer needs and driving demand for core brands like **DeWalt, Stanley, and Craftsman** [10][11] Supply Chain and Production - The company is actively reducing its reliance on China for U.S. consumption, aiming to be effectively out of China within **12 to 24 months** [20] - The strategy includes leveraging production capabilities in **Mexico** and ensuring compliance with **USMCA** regulations [21][33] - The company is working to simplify its manufacturing footprint and improve inventory turnover, with current inventory days at **150**, compared to pre-pandemic levels of **120-130** [44][45] Market Conditions - There is a noted strength in the professional market segment compared to the DIY segment, which remains soft due to economic instability [29] - The company anticipates that improvements in the economy and interest rates will eventually lead to increased consumer activity in the DIY sector [30] Pricing Strategy - The pricing environment is described as volatile, with the company committed to maintaining service levels and inventory flow to support customers [18] - The company has a flexible pricing strategy that can be adjusted based on market conditions and tariff impacts [22][24] Portfolio Management - The company is in the process of portfolio cleanup, focusing on divesting non-core assets to streamline operations and improve cash generation [51][52] Additional Important Content - The company has centralized its engineering organization to enhance innovation and product development efficiency [12][13] - There is a focus on building a more diverse and flexible production strategy across various geographic locations, including **Vietnam** and **India** [33] - The management expressed confidence in the talent and team dynamics within the company, which is crucial for executing its strategic vision [14] This summary encapsulates the essential insights from the conference call, highlighting Stanley Black & Decker's financial performance, strategic initiatives, market conditions, and operational adjustments.