Better Together Team Member Recognition

FAQ’s (Applicable to Australian Team Members) ​ ​

Eligibility: 3 How do I know if I am eligible for a Better Together Team Recognition award? 3 What Better Together Thank You payment will I receive? 3 I was STI/MyIncentive eligible for only part of the year. Do I get a Better Together Team Recognition payment? 3 I was full time/part time for most of the year but am now casual. Which payment do I get? 4 I am leaving Woolworths before 1 July. Am I still eligible to receive the PlusCard Credits & Better Together Share Award? 4 I never received a SMS/text message or email, can I still get the PlusCard Credits &/or Better Together Share Award? 4 Where can I find the link to the Better Together Share Award? 4

Better Together PlusCard Credit: 4 What is a PlusCard credit? 4 When will I receive my PlusCard credit? 4 Do I have to use my PlusCard credit in one transaction? 4 How will I know how many PlusCard credits I have left to spend? 5 A: When finalising your transaction, the remaining balance will be reflected on your receipt. Please note that PlusCard credits are unable to be redeemed for online shopping transactions. 5 Will I see the value of the PlusCard credits I have spent on my receipt? 5 Do I have to spend my PlusCard Credit by a certain date? 5 Can I get my PlusCard Credit paid to me in cash? 5 The payment hasn’t been loaded against my PlusCard. Why? 5 I do not have a PlusCard. How do I get my PlusCard and PlusCard Credits? 5 I am leaving Woolworths, what will happen to the balance of my PlusCard Credits if I haven’t used the full amount? 5 Will the number of Rewards Points I earn on my shop be impacted if I use my PlusCard Credits to pay for the transaction? 5 Why can I not see my PlusCard Credits on my Rewards App/account? 6 Can I convert my PlusCard Credits to Rewards Points? 6

Better Together Share Award: 6 How do I know if I am eligible for the Better Together Share Award? 6 I am eligible for MyIncentive, why won’t I receive the Better Together Share Award? 6 I am Full Time/Part time but under the age of 18 Years. When will I receive my payment in lieu of the Better Together Share Award? 7 What is a Share? 7

I have elected to participate in the F21 Share Purchase Plan (SPP), can I do this and get the Share Award? 7 Can I cash out my shares now? 7 Why have you given me shares instead of cash? 7 How do I sell my shares? 7 Will I pay tax on the shares? 8 Can I buy more shares? 8 How do I access my share portfolio? 8 I can’t access my portfolio on the Link Market Services website? 8 What is the value of my shares? 8 I have been with Woolworths for less than a year - what is the value of my award? 8 I am a part time Team Member - what is the value of my award? 8 I am a part time team member - why are you not using my actual hours to calculate the value of shares to award me? 9 I have only become STI eligible recently - will I receive any shares? 9 What are dividends? 9 Will I receive dividends from my shares? 9 Do I need to pay tax on dividends? 9 I am under 18 years of age. Why am I getting a cash payment and not getting a Share Award? 9 I am a non-Australian resident for tax purposes. Why am I getting a cash payment and not getting a Share Award? 10

Better Together Extension of PlusCard for Casuals: 10 Who is eligible to have their PlusCard extended to 31st December? 10

MyIncentive: 10 What are the eligibility rules for MyIncentive this year? 10 How is the Business score applied to MyIncentive payments this year? 10 How does my end of year MyOutcome rating impact the MyIncentive payment I will receive? 11 What happens if my leader does not confirm my end of year MyOutcome rating? 11 How will my MyIncentive payment be calculated if I did not work the full year? 11 I was seconded into a role for part of the year, so will my MyIncentive payment take that into account? 11 I undertook a Short Term Relief for part of the year, so how does that impact the MyIncentive payment I will receive? 11 I am currently on a Performance Improvement Plan (PIP), so will I still receive a MyIncentive payment this year? 11

Recognition Share Plan (RSP): 11 What are the eligibility rules for RSP this year? 11 How will my RSP grant be managed this year? 12

BWS Profit Share 12

Eligibility:

How do I know if I am eligible for a Better Together Team Recognition award? A: You are eligible if, you are a ​ ​ ❏ Full time, Part Time Team Member employed by the Woolworths Group prior to 1 March 2020 or a ❏ Casual Team Member employed prior to 1 March 2020 and worked at least 1 shift between 1 March 2020 and 30 April 2020 and ❏ Are not eligible for MyIncentive or any other incentive or commission plan during the current performance period; or - are eligible for MyIncentive for a portion of the current performance period (e.g., because of a secondment) and your MyIncentive award is less than or equal to $1,500 ❏ are Australian/New Zealand residents for tax purposes

For clarity, this includes: - Permanent hourly rate Team Members - Jimmy Brings, Shorty’s, Prowine, Chapel Hill directly employed Team Members - Team Members on paid leave - Team Members who were asked not to come to work between 1 March and 30 April, including: - Vulnerable team members - ALH Team Members who were stood down

What Better Together Thank You payment will I receive? A: Permanent full time Team Members employed prior to 1 March and who do not participate in ​ ​ ​ MyIncentive or any other incentive or commission plan, will receive up to $750 worth of shares, and this value will be prorated based on contracted hours for our part-time team. ​ ​ In addition,all Australian full time and part time Team Members who were employed prior to 1 ​ ​ ​ ​ March and who do not participate in MyIncentive or any other incentive or commission plan, will also receive $250 in Team Member PlusCard credits. Australian Casual Team Members employed prior to 1 March will receive $100 in PlusCard Credits. ​ ​ ​

Casual Team Members in Australia who have joined us on or after 1 March to assist in helping us ​ ​ ​ navigate the COVID demand surge will be able to keep their Team Discount until the end of December of this year, irrespective of whether they stay with the Group or not.

Team Member discount of 10% in , Metro and BWS, and 20% discount on apparel and footwear in , applicable to all PlusCard holders will continue until 31 July. ______

I was STI/MyIncentive eligible for only part of the year. Do I get a Better Together Team Recognition payment? A: If you were eligible for MyIncentive for a portion of the current performance period (e.g., because of ​ a secondment) and your MyIncentive award is less than or equal to $1,500, you will be eligible for the ​ ​ Team Recognition payment.

I was full time/part time for most of the year but am now casual. Which payment do I get? A: Your Team Recognition payment is based on your employment status as at 29 February 2020, so ​ you will receive $100 PlusCard credits as a casual Team Member.

I am leaving Woolworths before 1 July. Am I still eligible to receive the PlusCard Credits & Better Together Share Award? A: To be eligible for the Team Recognition payment and/or Share offer you need to be actively ​ employed by Woolworths Group on the date of 1 July 2020.

I never received a SMS/text message or email, can I still get the PlusCard Credits &/or Better Together Share Award? A: Yes, if you meet the eligibility criteria you are still entitled to the Team Recognition payment. Text ​ messages were sent to the mobile phone number recorded in SuccessFactors (or provided by your C&P team for non SuccessFactors Team Members). Please ensure that you update your personal contact information in SuccessFactors (or appropriate pay office) so that we can continue to communicate with you about your offers and entitlements.

Where can I find the link to the Better Together Share Award? A: The link to view your Better Together Share Award will be available from 10 June and will be ​ added here at this time.

Better Together PlusCard Credit:

What is a PlusCard credit? A: A PlusCard credit is like receiving a gift card. The value is loaded onto your PlusCard and you can ​ ​ ​ choose to use this credit like cash when you shop in store at our , Woolworths Metro, Big W and BWS (excluding NT) stores. *PlusCard credits are unable to be redeemed online.

When will I receive my PlusCard credit? A: Your PlusCard credits will be applied to your card on 1 July 2020 ​

Do I have to use my PlusCard credit in one transaction? A: No. You can choose to spend your PlusCard credit in smaller amounts. When you choose to use ​ your credit the total of your credits will be applied against the transaction value.You will be unable to apply only a partial payment. For example if you have $100 in PlusCard credits and your transaction equals $50, then, if you choose to use your credits, $50 of your credits will be used. You can not nominate to use say $20 of your credits only and pay the difference via another tender.

How will I know how many PlusCard credits I have left to spend?

A: When finalising your transaction, the remaining balance will be reflected on your receipt. Please ​ note that PlusCard credits are unable to be redeemed for online shopping transactions.

Will I see the value of the PlusCard credits I have spent on my receipt? A: Yes. The value of your credit redemption will appear on your receipts. ​

Do I have to spend my PlusCard Credit by a certain date? A: No. There is no requirement to use the payment loaded onto your PlusCard by a certain date. ​

Can I get my PlusCard Credit paid to me in cash? A: Your Team Recognition payment is unable to be paid in cash. You can use the value loaded on ​ your team PlusCard to spend in store at Woolworths Supermarkets, Woolworths Metro, BWS (excluding NT) and Big W. You could also purchase gift cards from any of these businesses.

The payment hasn’t been loaded against my PlusCard. Why? A: Have you activated your PlusCard? PlusCard credits can only be applied to active cards. ​ ​ If you have checked your eligibility and PlusCard credit has not been loaded against your card, please complete this form. ​ ​

I do not have a PlusCard. How do I get my PlusCard and PlusCard Credits? A: Every Full Time, Part Time and Casual Woolworths Group team member is issued with a ​ PlusCard. If you have not yet received your physical card or received a message via WorkJam or email please complete this form. ​ ​ ______

I am leaving Woolworths, what will happen to the balance of my PlusCard Credits if I haven’t used the full amount? A: If you are leaving Woolworths and have not spent your full PlusCard credit, the remaining balance ​ will be transferred across to the card that will be issued to you. Please ensure your contact information with Everyday Rewards is current. ​ ​

Will the number of Rewards Points I earn on my shop be impacted if I use my PlusCard Credits to pay for the transaction? A: No. The way your Rewards points are applied is not impacted if you choose to use your PlusCard ​ credits on your transaction.

Why can I not see my PlusCard Credits on my Rewards App/account? A: Your PlusCard credits were not applied via our Rewards program which is why your credits are ​ unable to be viewed on your app or via your Rewards account.

Can I convert my PlusCard Credits to Rewards Points? A: No. We are unable to send your PlusCard credits across to Woolworths Rewards. ​

Better Together Share Award:

How do I know if I am eligible for the Better Together Share Award?

A. Permanent full time and part time employed team members of the Woolworths Group (including ) who were employed prior to 1 March 2020 and remain employed at the time the shares are allocated who: - are: - not eligible for MyIncentive or any other incentive or commission plan during F20; or - eligible for MyIncentive for only a portion of F20 (e.g., because of a secondment) and their MyIncentive award is less than or equal to $1,500; ​ ​ and - are Australian residents for tax purposes

For clarity, this includes the following team members who meet the above criteria: - Permanent team members paid an hourly rate - Permanent team members paid by salary - Jimmy Brings, Shorty’s, Prowine, Chapel Hill directly employed team members - Team members on paid leave - Team members who were asked not to work between 1 March and 30 April and continued ​ ​ to be paid, including: - Vulnerable team members - ALH team who were stood down Note Eligible team members who are: ● Under 18 years of age on 10 June 2020; and/or ● Not Australian residents for tax purposes will not receive Shares and instead will receive a net cash equivalent payment in the applicable July 2020 payroll.

I am eligible for MyIncentive, why won’t I receive the Better Together Share Award? A: The intention of the Better Together Share Award is to recognise the extraordinary efforts of those ​ Woolworths Team Members during F20 who are not recognised for their contributions through other means like MyIncentive or any other incentive or commission plan. This includes many of our store teams who have contributed enormously during COVID-19

I am Full Time/Part time but under the age of 18 Years. When will I receive my payment in lieu of the Better Together Share Award? A: This will be paid through the payroll in July 2020. ​

What is a Share? A: Shares are part ownership in a company, in this case, Woolworths Group Limited. You can learn ​ more about shares by clicking here. ​ ​

I have elected to participate in the F21 Share Purchase Plan (SPP), can I do this and get the Share Award? A: Yes. The amount that you will now be able to salary sacrifice under the SPP may be reduced such ​ that the sum of the share award plus your salary sacrifice will be no more than $1,000 in total.

To understand how this works please refer to the Better Together Share Award booklet (will be ​ ​ ​ ​ available from 4th June) and the section Additional conditions only applicable if you are a participant ​ in the Share Purchase Plan (SPP) in F21. ​

Can I cash out my shares now? A: No. Shares are restricted from sale until the earlier of: ​ - 3 years; or - Cessation of employment This is an Australian Tax Office requirement.

Why have you given me shares instead of cash? A: The permanent team recognition that Woolworths has announced includes both cash (in the form ​ of PlusCard credit) and a Better Together Share Award. The share award is an opportunity to greatly expand Team Member share ownership of the company and enable our team to share in the Group’s success.

If you are under 18 years of age as at 10 June 2020 or a non-Australian resident for tax purposes, you will receive the equivalent amount as a cash payment (after tax) as we are not legally able to award you shares.

How do I sell my shares?

A: You can request that the Shares be sold or transferred to you once the three-year restriction period ​ has passed or you have ceased employment (whichever is earlier) online through the Link Market Services Employee Investor Centre.

Once the Shares have been transferred to you, you can arrange to sell them online via the Link Market Services Employee Investor Centre, or on the ASX through a stockbroker.

Will I pay tax on the shares? A: The value of shares you receive under this plan will not be taxable to you if your adjusted taxable ​ income is less than $180,000 (for more information on this see the Australian Taxation section of the Better Together Share Award booklet (will be available from 4th June)). If you later sell the shares for an amount which is more than the value of the shares on the day you received them, you will be liable for capital gains tax on that increase in value. ​

Can I buy more shares? A: The Better Together Share Award is a fixed number of shares depending on your eligibility and ​ full-time or part time contracted hours. If you wish to buy more shares you can do this through Link Market Services or a share broker, subject to the blackout periods and other restrictions like insider trading. See Woolworths Securities Trading Policy for more information. ​ ​

How do I access my share portfolio? A: Once the shares are awarded to you, you will be contacted by Link Market Services who will ​ provide instructions on how to access your account, which will have the number of shares and their current market value on the ASX.

I can’t access my portfolio on the Link Market Services website? ❏ Contact Link Market Services as follows: ❏ Email: [email protected] ​ ❏ Website: https://investorcentre.linkmarketservices.com.au/Employee/wowe ​ ❏ Phone: 1800 111 281 from 8.30am - 7.30pm AEST ​

What is the value of my shares? A: Once the shares are awarded to you, you will be contacted by Link Market Services who will ​ provide instructions on how to access your account, which will have the number of shares and their current market value on the ASX.

I have been with Woolworths for less than a year - what is the value of my award? A: If you follow the link provided in the SMS text message and/or email you will be directed to a ​ microsite that Link has set up. On the site you will have the opportunity to verify your identity and once you have done that, will be able to see what the value of your award is. Once the shares are awarded to you in July 2020, you will be contacted by Link Market Services who will provide instructions on how to access your account, which will have the number of shares and their current market value on the ASX.

I am a part time Team Member - what is the value of my award? A: If you follow the link provided in the SMS text message and/or email you will be directed to a ​ microsite that Link has set up. On the site you will have the opportunity to verify your identity and once you have done that, will be able to see what the value of your award is.

Once the shares are awarded to you in July 2020, you will be contacted by Link Market Services who will provide instructions on how to access your account, which will have the number of shares and their current market value on the ASX.

I am a part time team member - why are you not using my actual hours to calculate the value of shares to award me? A: The unusual events of F20 impacted different parts of our business, and individual team members, ​ in different ways. Some businesses saw increased customer demand, and needed people to work more hours, while others were forced to close and/or reduce available working hours. So, for consistency and fairness of application across the various businesses in the Woolworths Group, we are using underlying contracted hours to prorate the share awards for part time Team Members.

I have only become STI eligible recently - will I receive any shares?

A: Refer to the eligibility criteria. ​

What are dividends?

A: Dividends are a payment from a company to its shareholders. You can learn more about dividends ​ ​ here. ​

Will I receive dividends from my shares?

A: You may receive dividends from holding shares in a company, depending on the performance of ​ ​ that company and decisions made by the Board and management. Dividends are not guaranteed.

Do I need to pay tax on dividends?

A: Dividend income is taxable. Companies that pay dividends provide their investors with an annual ​ ​ statement that shows the amount of dividends paid and any franking credits attached to those dividends. This information should be used in completing your annual income tax return. ​

I am under 18 years of age. Why am I getting a cash payment and not getting a Share Award? A: It is not possible for people under 18 to buy and sell shares, the shares would have to be held in ​ the name of an adult on trust for you. Given this we will pay the equivalent value (after tax) in cash to eligible Team Members under 18 years of age as at 10 June 2020.

I am a non-Australian resident for tax purposes. Why am I getting a cash payment and not getting a Share Award? A: Under the Australian Tax Office rules regarding this type of plan, we are unable to provide shares ​ to non-Australian residents for tax purposes. Given this we will pay the equivalent value (after tax) in cash to eligible team members who were non-Australian residents for tax purposes as at 30 April 2020.

Better Together Extension of PlusCard for Casuals:

Who is eligible to have their PlusCard extended to 31st December? A: Casual Team Members who have joined the Woolworths Group on or after 1 March to assist in ​ ​ helping us navigate the COVID demand surge will be able to keep their Team Discount until the end of December of this year, irrespective of whether they stay with the Group or not.

MyIncentive:

What are the eligibility rules for MyIncentive this year? A: Eligibility criteria is outlined in this table: ​

Eligible Not Eligible

- Permanently employed STI-eligible Team - STI-eligible Team Members hired on or after 1 May Members, hired before 1 May 2020 2020 - Must be employed on payment date of - Team Members on any other incentive or commission MyIncentive (September 2020 pay cycle) plan - All non-STI-eligible team members - Team Members who exit the business before payment date (September 2020 pay cycle)

How is the Business score applied to MyIncentive payments this year? A: The Business score of approximately 80% will be applied uniformly across all business and ​ functional areas. Here is an example of the MyIncentive calculation for a Team Member earning an annual base salary of $80,000, with a personal MyIncentive target of 16%: Annual Base Salary of $80,000 x MyIncentive target of 16% x Business score of 80% = $80,000 x 16% = $12,800 x 80% = $10,240 gross payment.

Here is an example of the MyIncentive calculation for a Team Member earning an annual base salary of $120,000, with a personal MyIncentive target of 20%: Annual Base Salary of $120,000 x MyIncentive target of 20% x Business score of 80% = $120,000 x 20% = $24,000 x 80% = $19,200 gross payment.

How does my end of year MyOutcome rating impact the MyIncentive payment I will receive? A: We have changed our approach for this year only, which means that Team Member MyOutcome ​ ratings will not impact the MyIncentive payment they receive. This means that all Team Members who receive an Achieving or Exceeding MyOutcome rating will receive approximately 80% x their personal MyIncentive target, regardless of their MyOutcome rating. Where Team Members are on formal performance improvement plan and receive an Expecting More rating, a lower MyIncentive outcome may be received.

What happens if my leader does not confirm my end of year MyOutcome rating? A: We have changed our approach for this year, which means that Team Member MyOutcome ratings ​ will not impact the MyIncentive payment they receive. This means that if you don’t have a MyOutcome rating confirmed, you will still receive a payment aligned to the agreed calculation of Annual Base Salary x MyIncentive target x Business score of approximately 80%, unless you are on a formal Performance Improvement Plan.

How will my MyIncentive payment be calculated if I did not work the full year? A: The normal proration rules outlined in the MyIncentive Policy will apply. ​ ​ ​

I was seconded into a role for part of the year, so will my MyIncentive payment take that into account? A: The normal calculation rules for Secondments will apply, as outlined in the MyIncentive Policy. ​ ​ ​

I undertook a Short Term Relief for part of the year, so how does that impact the MyIncentive payment I will receive? A: This will not impact your payment. The MyIncentive Policy confirms that MyIncentive remains ​ ​ ​ payable on the original underlying role (substantive role) and/or business area only.

I am currently on a Performance Improvement Plan (PIP), so will I still receive a MyIncentive payment this year?

A: Team Members who are currently on a Performance Improvement Plan (PIP) and who receive an ​ Expecting More rating may receive a lower or no MyIncentive payment this year.

Recognition Share Plan (RSP):

What are the eligibility rules for RSP this year? A: Eligibility criteria is outlined in this table, and in the RSP policy: ​ ​ ​

Eligibility criteria:

Eligible Not Eligible

- Permanently employed salaried team members, - RSP-eligible Permanent Team Members hired hired before 1 May 2020 and in a RSP eligible on or after 1 May 2020. role. Please refer to the RSP policy on the - Team members who exit the business before the ​ ​ People Portal for details of RSP eligible roles. share rights are granted. - Employed when the share rights are granted (which may be up to 4 months after 30 June each year).

How will my RSP grant be managed this year? A: For RSP eligible Team Members, for this year only, we will follow the same approach as for ​ ​ ​ MyIncentive, and award the same RSP allocation by Career Level, with no reference to MyOutcome (performance) rating for people who receive Achieving or Exceeding ratings. Where Team Members are on formal performance improvement plans and/or receive an Expecting More rating, a lower (or no) RSP award this year.

BWS Profit Share

The BWS Profit Share will be aligned with the Group approach. This means that BWS Profit Share quarter 4 payments will reflect the Business Score (Group multiplier) of approximately 80%.