Financial Data and Key Metrics Changes - Group sales for FY25 increased by 3.6% to $69.1 billion, with a normalized sales growth of 2.9% excluding Petstock [21][22] - Group EBIT before significant items was $2.8 billion, a decrease of 12.6% compared to the prior year, primarily due to lower contributions from Australian Food and BIG W [22][24] - Group NPAT attributable to equity holders before significant items was $1.4 billion, down 17.1% reflecting lower EBIT and higher financing costs [23] - Group ROCE was 13.7%, a decline of 194 basis points compared to the prior year [23][29] Business Line Data and Key Metrics Changes - Australian Food sales increased by 3.1% to $51.5 billion, with e-commerce sales growing by 17.4% [21][24] - BIG W sales increased by 1.1%, with a loss of $35 million for the year, reflecting challenges in the competitive market [27][18] - New Zealand sales increased by 3.4%, with EBIT performance improving by 40.6% for the year [26][18] - Complementary businesses like Cartology saw revenue growth of 19.5% [19] Market Data and Key Metrics Changes - E-commerce sales in Australia grew by 17.4%, with 87% of orders fulfilled within 24 hours [10][11] - The average inventory days increased by 1.6 days, reflecting higher investment in inventory to improve availability [29] - The average payable days decreased by 3.3 days, largely due to payment timing differences [29] Company Strategy and Development Direction - The company aims to be the first choice for customers for the freshest Australian food, improve returns in New Zealand Food and BIG W, and grow complementary businesses [38][41] - A focus on delivering consistently good customer experiences and establishing price trust is emphasized [43][44] - The company plans to invest in lowering prices and improving retail execution to enhance customer perception and loyalty [47][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the operating environment, including cost of living pressures and competitive retail dynamics [3][5] - There are expectations for improved financial performance in FY26, driven by strategic priorities and a more stable operating environment [52][54] - The company is committed to restoring customer trust through compelling value and retail execution excellence [54] Other Important Information - The company completed its five-year sustainability plan, delivering an estimated $2.6 billion in net societal benefits [20] - Significant item losses before tax of $569 million were reported, primarily related to impairments and restructuring costs [28] Q&A Session Summary Question: Online profitability improvement - Management highlighted the potential for optimizing picking and packing processes and the importance of e-commerce customers who tend to spend more [58][60] Question: Investment confidence in turning around business - Management emphasized a long-term strategy focused on delivering sustainable returns and improving customer value perception [63][66] Question: Clarification on sustaining CapEx - Management clarified that capital expenditures are strictly capitalized based on future cash flows, with a focus on long-term investments in supply chain and technology [70][79]

Core Viewpoint - The Ministry of Commerce has announced the first batch of 38 pilot cities for retail innovation and enhancement, including Shenyang and Dalian, aiming to improve consumer experiences and service quality in these cities [1][2]. Group 1: Pilot Cities and Implementation - Shenyang and Dalian have been selected as pilot cities for the national retail innovation enhancement initiative [1]. - The pilot program will last for two years, with new cities being selected annually from 2025 to 2029, promoting successful cases and experiences [1]. Group 2: Focus Areas for Pilot Cities - Shenyang's focus will be on "one store, one strategy" scenario-based transformation, quality supply, and policy innovation [2]. - Dalian's focus will also include "one store, one strategy" scenario-based transformation, quality supply, and diversified innovation [2]. Group 3: Specific Implementation Strategies - The initiative encourages scenario-based transformation by enhancing operational functions, optimizing environments, and improving service facilities while ensuring safety [2]. - Quality supply will be promoted through initiatives like trade-in programs for traditional consumer goods and fostering new consumption growth points in smart home products and health-related items [2]. - Diversified innovation will include the development of boutique stores, pop-up shops, and brand discount stores, emphasizing unique and specialized retail experiences [2]. Group 4: Support and Facilitation Measures - Pilot cities are required to facilitate project planning, approval processes, land use changes, and financing in accordance with the implementation plan [3]. - The initiative aims to leverage various policies to enhance the business environment and support modern commercial circulation systems [3].