WHLE - WOOLWORTHS HOLDINGS LIMITED - Trading update and further trading statement: 52 weeks ended 24 June 2018 [JSE Securities Exchange - SENS]
Trading update and further trading statement: 52 weeks ended 24 June 2018

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")


2018 has been a difficult year for the Group, as we contended with extremely challenging trading
conditions in South Africa and Australia, as well as poor product execution in some areas of
womenswear. Group sales for the 52 weeks ended 24 June 2018 increased by 1.6% compared to the
prior year (and by 2.9% in constant currency).

In South Africa, Woolworths Fashion, Beauty and Home ("FBH") sales declined by 2.9% in the second
half, resulting in a full year contraction of 1.5%, with price movement of 0.8%. Comparable store sales
were 4.1% lower, with net retail space growing by 2.5%.

Woolworths Food increased sales by a market-leading 8.4%, achieving positive volume growth on price
movement of 3.2%. Comparable store sales were up 4.8%, with net retail space growing by 3.5%.

The Woolworths Financial Services debtors book reflected positive year-on-year growth of 3.8%, as at
the end of June 2018. The impairment rate for the twelve months ended 30 June 2018 reduced to 5.2%
from 6.3% in the prior year.

Country Road Group ("CRG") sales increased by 1.7% for the year, but comparable store sales, which
exclude the menswear brand Politix acquired in November 2016, declined by 1.8%. Online sales in CRG
now represent 18.0% of sales with growth of 20.8% over the year. Net retail space grew by 2.5%.

David Jones sales increased by 2.2% in the second half and by 2.7% in comparable stores. Full year
sales finished 0.9% lower (and 0.4% lower in comparable stores). Net retail space grew by 0.1%, with
4.2% new space offset by 4.1% of space reductions and closures. The sales disruption from the
refurbishment of the Elizabeth Street store in Sydney will continue through to December 2019. Online
sales grew 21.4%, contributing 5.3% of sales.

It has been a year in which we substantially completed key David Jones business transformation
initiatives. The disruption experienced during the year by the implementation of new inventory and online
systems, the repositioning of the foods business, and the head office relocation, impacted both gross
margin and costs.

Shareholders are advised that headline earnings per share ("HEPS"), adjusted diluted HEPS and
earnings per share ("EPS") for the current year are expected to be within the ranges reflected in the table

                          2017 reported     2018 expected growth range      2018 expected range
                          (cents)           (%)                             (cents)

HEPS                      420.9             -15.0% to -20.0%                336.7 to 357.8
Adjusted diluted HEPS     417.7             -10.0% to -15.0%                355.0 to 375.9
EPS                       566.7             -160.0% to -170.0%              -340.0 to -396.7

As advised on the Stock Exchange News Service ("SENS") on 17 May 2018, the EPS has been impacted
by the A$712.5 million impairment charge on the carrying value of David Jones recognised in the 26-
week period ended 24 December 2017.

The constant currency information has been presented to illustrate the impact of changes in the Group's
major foreign currency, the Australian dollar. In determining the constant currency turnover and
concession sales growth rate, turnover and concession sales denominated in Australian dollar for the
current financial reporting period have been adjusted by application of the aggregated monthly average
Australian dollar exchange rate for the prior comparable period. The foreign currency fluctuations of our
rest of Africa operations are not considered material, and have therefore not been applied in determining
the constant currency turnover and concession sales growth rate. The aggregated monthly average
Australian dollar exchange rate is R9.97 for the current financial reporting period and R10.25 for the
prior comparable period.

The estimated financial information, including the constant currency information, contained in this
announcement has not been audited, reviewed or reported upon by the Group's external auditors.

The Group's year-end results for the 52-week period ended 24 June 2018 are scheduled to be
announced on the SENS on or about 23 August 2018. The constant currency information, which is the
responsibility of the Group's directors, has been prepared for illustrative purposes only, and may not
fairly present the Group's results of operations.

Reeza Isaacs (Group Finance Director) on 021 407 2464
Ralph Buddle (Director: Strategy and Business Development) on 021 407 3250

Cape Town
19 July 2018

RAND MERCHANT BANK (A division of FirstRand Bank Limited)


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