Coles Group Limited ABN 11 004 089 936
800 Toorak Road Hawthorn East Victoria 3123 Australia
PO Box 2000 Glen Iris Victoria 3146 Australia
Telephone +61 3 9829 5111
www.coleANNUAL REPORTsgroup.com.au
24 September 2020
The Manager
Company Announcements Office
Australian Securities Exchange
Dear Manager,
2020 ANNUAL REPORT
In accordance with the ASX Listing Rules, attached for release to the market is Coles
Group Limited’s 2020 Annual Report.
This announcement is authorised by the Board.
Yours faithfully,
Daniella Pereira
Company Secretary
For more information:
Investor Relations
Mark Howell
Mobile: +61 400 332 640
E-mail:
investor.relations@colesgroup.com.au
Media
Meg Rayner
Mobile: +61 439 518 456
E-mail:
media.relations@coles.com.au
2020 Annual Report
Sustainably feed all Australians to help
them lead healthier, happier lives
Coles Group Limited
ABN 11 004 089 936
Coles Group Limited 2020 Annual Report
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Forward-looking statements
This report contains forward-looking statements in relation to Coles Group Limited (‘the Company’) and its controlled entities (together ‘Coles’
or ‘the Group’), including statements regarding the Group’s intent, belief, goals, objectives, initiatives, commitments or current expectations
with respect to the Group’s business and operations, market conditions, results of operations and financial conditions, and risk management
practices. Forward-looking statements can generally be identified by the use of words such as ‘forecast’, ‘estimate’, ‘plan’, ‘will’, ‘anticipate’,
‘may’, ‘believe’, ‘should’, ‘expect’, ‘intend’, ‘outlook’, ‘guidance’ and other similar expressions.
These forward-looking statements are based on the Group’s good-faith assumptions as to the financial, market, risk, regulatory and other
relevant environments that will exist and affect the Group’s business and operations in the future. The Group does not give any assurance that
the assumptions will prove to be correct. The forward-looking statements involve known and unknown risks, uncertainties and assumptions and
other important factors, many of which are beyond the reasonable control of the Group, that could cause the actual results, performances
or achievements of the Group to be materially different from future results, performances or achievements expressed or implied by the
statements.
Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements in this report speak only as
at the date of issue. Except as required by applicable laws or regulations, the Group does not undertake any obligation to publicly update
or revise any of the forward-looking statements or to advise of any change in assumptions on which any such statement is based. Past
performance cannot be relied on as a guide to future performance.
Non-IFRS Information
This report contains IFRS and non-IFRS financial information. IFRS financial information is financial information that is presented in accordance
with all relevant accounting standards. Retail or non-IFRS financial information is financial information that is not defined or specified under any
relevant accounting standards and may not be directly comparable with other companies’ information.
Any non-IFRS financial information included in this report has been labelled to differentiate it from statutory or IFRS financial information. Non-IFRS
measures are used by management to assess and monitor business performance at the Group and segment level and should be considered in
addition to, and not as a substitute for, IFRS information. Non-IFRS information is not subject to audit or review.
Other Information
Photographs in our Annual Report may have been taken before social distancing restrictions were in place. The image of FightMND campaign
director Bec Daniher with Coles team members on page 11 of this report was photographed by News Ltd / Newspix.
Front cover: In addition to the collection of unsold, edible food from our supermarkets and distribution centres, food and groceries to a retail
value of $7.9 million were provided to SecondBite and Foodbank this year in response to increasing demand for food relief as a result of
COVID-19. SecondBite CEO Jim Mullan said, ‘It’s incredible to see how our partnership with Coles has grown over the years and the impact this
has had on the most vulnerable people in our community. Many shoppers wouldn’t be aware of the work that goes on behind the scenes to
ensure edible unsold food ends up on the plates of those in need, rather than in landfill. We are proud to work with an organisation that is a
clear leader with respect to both its social and environmental responsibilities.’
Coles acknowledges the Traditional Custodians of Country
throughout Australia and pays its respects to elders past
and present. We recognise their rich cultures and continuing
connection to land and waters.
Aboriginal and Torres Strait Islander peoples are advised
that this document may contain names and images of
people who are deceased.
All references to Indigenous people in this document
are intended to include Aboriginal and/or Torres Strait
Islander people.
Coles Group Limited 2020 Annual Report
1
Welcome to the
Coles Group
2020 Annual Report
Our vision is to become the most trusted retailer in Australia
and grow long-term shareholder value.
Customers trust Coles, as part of the fabric of Australian
society for more than 100 years, to provide great value
food and drinks.
We are known for our value, range and customer service
through our extensive store network and for providing
online shopping solutions across Australia.
Contents

Overview
2020 performance 4
2020 highlights 5
Message from the Chairman 6
Managing Director and
Chief Executive Officer’s report 8
Our vision, purpose and strategy 11
How we create value 12
Sustainability snapshot 14
Support for customers, suppliers and communities 19
Governance at Coles 24
Operating and Financial Review 30
Board of Directors 65
Directors’ Report 68
Remuneration Report 73
Financial Report 96
Independent Auditor’s Report 150
Shareholder Information 158
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The Pergoliti family at Harvey Citrus in Western Australia received a grant from the Coles Nurture Fund in FY20 to extend its supply of WA-grown
citrus over the summer and increase local employment by expanding its cool room facility and installing solar panels on its packing shed.
Pictured is Andrew Pergoliti with his father Steve and daughter Alyssa.
Our purpose is to
sustainably feed all
Australians to help
them lead healthier,
happier lives.

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for Supermarkets2
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$1.4bn
EBIT1 $362m
Net debt4
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Coles Group Limited 2020 Annual Report
2020
performance
6.9%
Sales growth1
57.5c
Dividends per share6
5.0%
Supermarkets
sales density growth3
111%
Cash realisation5
18.3%
Improvement in total
recordable injury
frequency rate7
88.2%
Customer satisfaction
7pp
Improvement in team
member engagement
(percentage points)
1 On a non-IFRS basis. Refer to Non-IFRS Information section on page 39.
2 Q4 FY20, as measured by Tell Coles.
3 Growth in sales per square metre on a moving annual total (MAT), or exit rate calculated on a rolling 12 months of data basis.
4 Calculated as interest-bearing liabilities less cash and cash equivalents.
5 Calculated as operating cash flow excluding interest and tax, divided by EBITDA (excluding the impacts of AASB 16 and Significant items).
6 Comprising an interim dividend of 30.0 cents per share (paid) and a final dividend of 27.5 cents per share.
7 Refer to glossary of terms on page 49 for definition.
Coles Group Limited 2020 Annual Report
5
2020
highlights
Highlights for the year spanned our business
and store network, our customer base, our team of suppliers
and our communities around Australia.
$10bn+
in Coles Own Brand sales
1,500+ new products
at everyday low prices
Progress with Witron & Ocado
automation
4,700+
Indigenous team members
Direct milk sourcing
with dairy farmers in VIC & NSW
Almost
doubled
capacity of Coles Online
$139m
provided in community support
Tailored store format strategy
70 renewals
New transport hubs to
optimise logistics
Coles Group Limited 2020 Annual Report
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The 2020 financial year was extraordinary for Coles and
the whole Australian community as droughts, bushfires
and COVID-19 created significant demands across our
businesses. Pleasingly, with the positive engagement
of our team members, our suppliers, our customers and
governments we were able to adapt to new challenges at
pace, with emphasis upon safety and performance.
Financial
For the year ended 28 June 2020, our first full year as a relisted
ASX company, we saw strong financial results. On a statutory
basis, total sales revenue was $37,408 million; earnings before
interest and tax were $1,762 million; and net profit after
tax was $978 million ($951 million excluding the impacts of
AASB 16 Leases and Significant items).
Our final dividend for the year payable on 29 September
2020 is 27.5 cents per share, fully franked, which together
with our interim dividend of 30.0 cents per share paid in
March 2020, brings our full year dividend to 57.5 cents per
share. This is a dividend payout equivalent to 82 per cent of
our after tax profit (before Significant items).
Coles strengthened its financial position during the year,
including extending the term of our debt maturity dates
and, at year end, had net debt of $362 million, a 30%
reduction on the prior year.
Leadership and team
During the year we significantly expanded our leadership
team with the appointment of new Executives in: Liquor –
Darren Blackhurst; eCommerce – Ben Hassing; Emerging
Businesses – George Saoud; Transformation – Ian Bowring;
and Corporate Affairs – Sally Fielke. Under the leadership
of our Chief Executive, Steven Cain, Coles has built a strong
leadership team with complementary skills which are well
aligned to our vision of becoming the most trusted retailer
in Australia and growing long-term shareholder value.
We also saw an increase of more than 5,000 team
members at year end, as we responded to the significant
surge in customer demand across food and liquor driven
by COVID-19. This increase in part reflected our underlying
business growth and in part the extra focus upon customer
and team member hygiene and safety in response to the
coronavirus pandemic.
With our commitment to increase our Aboriginal and
Torres Strait Islander participation levels to 5% of our total
team members by 2023, further progress was made during
the year. By the end of the 2020 financial year we had
surpassed 4,700 team members which was an increase of
more than 600 on the prior year.
Team member safety remains a priority and through
increased training, technology and commitment we saw
an improvement of 18.3% in our total recordable injury
frequency rate through the year.
On behalf of the Board, I extend our thanks to all Coles
team members and to our many strategic partners in
Message from
the Chairman
The 2020 financial year was extraordinary for
Coles and the whole Australian community as droughts,
bushfires and COVID-19 created significant demands
across our businesses.
Coles Group Limited 2020 Annual Report
7
supply, logistics and services for the exceptional efforts
that have been made during a year marked by so many
extraordinary events.
Customers and community
Throughout FY20 Coles played its part in supporting our
customers and the Australian community as we engaged
our nearly 2,500 retail outlets and rapidly growing online
services.
In times of community stress, large corporations have the
opportunity, and responsibility, to bring much needed
resources to address special needs. During this last financial
year we provided special support to the emergency
services and the rural fire services both financially and in
food availability at the time of the East Coast bushfires;
to our farmers and the Country Women’s Association
through our Coles Nurture Fund as we responded to the
drought-driven hardships experienced by so many in rural
communities; and to the elderly and disabled to whom we
provided special access to supermarkets and to our Coles
Online Priority Service in response to the restrictions arising
from COVID-19.
These special community focused activities were in
addition to our long-term support for national food rescue
organisations, SecondBite and Foodbank; to children with
cancer and their families through Redkite; to the crusade to
address motor neurone disease – FightMND; as well as our
support of hospitals caring for sick children across Australia
through the sale of Mum’s Sause; and many others.
In total, our community support was more than $139 million
comprising $125 million from Coles directly and $14 million
contributed by Coles’ customers, team members and
suppliers.
Technology and sustainability
Throughout our business we are investing for the future.
This investment is much more than the expansion of our
footprint; it is directed at how we can become more
efficient in meeting the needs of our customers and in
doing so more responsibly.
In every area there are opportunities where we can improve
our performance. Our progress on our hallmark projects
of automation of the two Witron distribution centres in
Queensland and New South Wales and the development
of the two Ocado Online customer fulfilment centres in
Victoria and New South Wales, is advancing in line with
our business plans. These two large projects are illustrative
of how we will make a difference to our future operating
effectiveness as we partner with global technology leaders
with fit for purpose retail solutions.
But there are many other projects throughout our
business operations where new technology is making
a difference. Coles is committed to improving how we
operate and to lessening our impact on the environment
by improving our packaging, decreasing our waste,
reducing our electricity needs and increasing our
utilisation of renewable energy sources. Full details of
these initiatives are set out in our 2020 Sustainability
Report which is accessible at www.colesgroup.com.au.
Importantly we are continually working with our suppliers
to improve not only our Coles Own Brand and proprietary
grocery product offerings but also to seek to ensure we
source product in accordance with our ethical sourcing
policy and requirements. At the 2019 Annual General
Meeting concerns were raised as to the importance of
labour standards amongst suppliers and since that time we
have increased our resources and efforts in this important
area. Working with suppliers, unions and other stakeholders
we are seeking to ensure that all aspects of our supply
chain support our dual objectives of trust and sustainability.
Board
I extend a special thanks to all my fellow directors who have
greatly contributed to the progress which we have been
able to make during this most unusual year. In particular, I
express appreciation on behalf of Coles to the contribution
made by Zlatko Todorcevski, who is retiring at the end of
September 2020. Zlatko has been the Chairman of our Audit
and Risk Committee since our demerger and has ensured
that our systems and financial procedures have been
robust and secure for our status as an ASX listed company
and his sound counsel has been greatly valued.
I also extend my thanks to our Chief Executive, Steven Cain.
Steven has driven the development and implementation of
our new strategy, the building of our leadership team, and
the competitive positioning of the business in this rapidly
changing world.
I am also very pleased to welcome our new director Paul
O’Malley. Paul O’Malley has a very strong financial and
commercial background within prominent ASX listed
companies which will complement the Board and our
skills mix. Paul will join the Board on 1 October 2020 and
will stand for election at our 2020 Annual General Meeting
which is being held virtually on 5 November 2020.
To all our shareholders, I express my thanks for your
continuing support of Coles and look forward to our making
further progress in the year ahead.
James Graham AM
Chairman, Coles Group Limited
Coles Group Limited 2020 Annual Report
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I am pleased to say that we have made substantial progress
against each of the pillars of our strategy despite the
challenges the 2020 financial year has presented, as our
team worked hard to fulfil our purpose of sustainably feeding
all Australians to help them lead healthier, happier lives.
Together during COVID-19
As a designated ‘essential service’, Coles has played an
important role in ensuring Australians can safely access the
food, drinks and fuel they need.
As demand surged in early March, we worked collaboratively
with suppliers, governments and industry stakeholders to
increase our supply chain capacity and also introduced
Community Hour to serve the vulnerable and emergency
services workers.
Coles Online briefly suspended service in March and April
in part due to limited and uncertain product availability,
with capacity almost doubling across home delivery and
contactless Click & Collect at service desks and to the
car boot. Coles Online Priority Service, focusing on service
for those most in need, including the elderly, was then
introduced.
We also worked closely with government experts and the
Supermarkets Taskforce to formulate industry-wide hygiene
and distancing protocols to keep our customers and team
members safe and improve product supply.
To manage the surge in volumes, our supply chain team set
up pop-up distribution centres in a matter of days to increase
our capacity, while our recent investment in our integrated
stock replenishment system and advanced data analytics
helped to improve availability and ensure high-demand
products were sent into stores to meet customer needs.
As the community adapted to the ‘new normal,’ demand
for food and liquor remained elevated as venue closures
and working from home meant customers were increasingly
cooking for themselves and staying in on weekends.
COVID-19 restrictions reduced traffic on the road and fuel
volumes at Coles Express.
As ever, it was the tremendous efforts of our team members
that made everything possible, and we were pleased to
be able to recognise their outstanding work with a thank
you payment to store and supply chain team members,
doubling the team member discount on shopping at Coles
and subsidising their flu vaccinations.
I am immensely proud of the way we truly worked as one
Coles team to support our customers, our suppliers, our
communities and each other. To further strengthen our
culture, in June we launched our Coles values: Customer
obsession, Passion and pace, Responsibility, and Health
and happiness.
These values are supported by our LEaD behaviours of
Look ahead, Energise everyone and Deliver with pride,
and were developed with input from our team members.
Managing Director
and Chief Executive
Officer’s report
Since our successful demerger from Wesfarmers during the 2019 financial year,
Coles has been executing our refreshed strategy to transform our business and
lay the foundations for long-term sustainable growth. COVID-19 has seen Coles
classified as an ‘essential service’ and our focus has been on team and customer
safety and supporting vulnerable Australians in our community.
Coles Group Limited 2020 Annual Report
9
They will guide the day-to-day decisions and actions of
team members, shaping the way we work together to
get things done as we continue to transform Coles for a
second century of generating long-term returns for our
shareholders.
Inspire Customers
We were pleased to report an improvement in customer
satisfaction across Supermarkets, Liquor and Express in the
fourth quarter.
We continued tailoring our customer offer by using datadriven ranging tools, which allowed us to execute one of
the largest range changes in Coles’ history and introduce
more than 1,600 new product lines.
We delivered trusted value through our campaigns to
Help Lower the Cost of Breakfast, Lunch and Dinner,
including the introduction of more than 1,500 new products
at everyday low prices, while sales of Own Brand grew by
10% to exceed $10 billion for the first time – accounting for
more than 31% of supermarket sales.
We have prioritised building capabilities in a number of
areas where COVID-19 has accelerated existing consumer
trends, including the growth of online shopping and
cooking at home.
We have grown our convenience offer, with dedicated
convenience sections now in almost 150 supermarkets and
with more than 240 new lines launched, including the new
Coles Kitchen range from our recently acquired Jewel Fine
Foods manufacturing facility in Sydney.
In Liquor, our refreshed strategy is focused on being a
simpler, more accessible, locally relevant drinks specialist
with a differentiated offer, while our Exclusive Liquor Brands
continue to collect accolades, bringing home a total of 372
medals and awards during the year.
Smarter Selling
Our Smarter Selling strategy achieved cost savings in excess
of $250 million, driven by the increased use of technology
to drive efficiencies.
Coles provided $3 million in gift cards to around 6,000 rural fire brigades across Australia to thank volunteer fire fighters for helping to keep rural communities safe.
Coles CEO Steven Cain is pictured at Wauchope with NSW Rural Fire Service Mid Coast District Incident Controller Kam Baker, Wauchope and King Creek Rural Fire
Brigade fire fighters, Coles NSW State General Manager Ivan and local Coles team members from the Lake Innes supermarket in Port Macquarie.
Our values. Our behaviours.

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To our millions of customers across almost 2,500
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in their response to the ongoing challenges that we face as
a community, and for their dedication to safely serving our Further progress was also made in tailoring our store
formats to the needs of local communities, with 70 renewals
completed during the year, including 10 Format A, 31
Format C and three Coles Local supermarkets.
Copy September 23, 2020 7:52 PM customers with a smile.
The first of our two distribution centres being built by
global automation experts Witron is under construction in
Queensland, and the second facility in New South Wales is in
the approvals stage. Meanwhile we have entered long-term
I would like to thank the Board for their support and valuable
guidance throughout the year, and our leadership team
for their tireless efforts to ensure our business could keep
doing what it does best while simultaneously making the
necessary changes to set Coles up for long-term success.
supermarkets, convenience and liquor stores, I thank you
10
Coles Group Limited 2020 Annual Report

This included streamlining our Store Support Centre
and implementing new systems across Finance and
Procurement, more efficient use of logistics so more trucks
carry both inbound and outbound loads, new technology
to help our store teams order the right amount of stock,
reduced energy consumption through use of LED lights and
refrigeration control systems, and improved measures to Looking ahead
In the 106 years since Coles was founded as a single store
in Melbourne’s Collingwood, our Company has weathered
many challenges. Few of them would be greater than those
that we have faced over the past financial year.
reduce stock loss in stores.

Our financial position adherence to the new social distancing guidelines that
keep us all safe. To our suppliers and community partners,
none of what has been achieved could have happened
without your collaboration, innovation and hard work for
which I thank you sincerely.
In line with our objective of providing shareholders with
sustainable earnings growth and attractive dividends, we
delivered a total shareholder return of 31.7% for the year.
Total dividends of 57.5 cents per share were declared in
relation to FY20.
On a retail basis, full year sales revenue increased by 6.9%
to $37,408 million with sales revenue growth across all
segments, and we were pleased to mark a return to growth
in full-year Group EBIT – up 4.7% to $1,387 million on a retail
basis – the first increase since FY16.
And finally to our shareholders – we will continue to transform
Coles into the most trusted retailer in Australia and deliver
long-term sustainable returns for you, your families and millions
of beneficiaries in Australia and beyond.
Importantly, we had begun to see benefits of the new
strategy prior to the onset of COVID – providing assurance
that Coles will be a stronger, more sustainable business long
after the pandemic.
I am extremely grateful for and proud of the resilience that
our more than 118,000 team members have demonstrated
for your understanding, patience, respectfulness and
Steven Cain
Managing Director and Chief Executive Officer,
Coles Group Limited
To our millions of customers across almost 2,500
supermarkets, convenience and liquor stores, I thank
you for your understanding, patience, respectfulness
and adherence to the new social distancing
guidelines that keep us all safe.
11
Coles Group Limited 2020 Annual Report
Our vision, purpose
and strategy
Our vision
Become the most trusted retailer in Australia
and grow long-term shareholder value.
Our purpose
Sustainably feed
all Australians to help
them lead healthier,
happier lives.
Inspire Customers
through best value
food and drink
solutions to make
lives easier.
Smarter Selling
through efficiency and
pace of change.
Win Together
with our team
members, suppliers
and communities.
Coles Group Limited 2020 Annual Report
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Nurture
Fund
Innovation
R&D
Five
Freedoms
for animal
welfare
Our economic value creation

Australian farmers
and producers Suppliers, processors
and packaging
Coles Supermarkets has an
Australian-first sourcing policy to
provide our customers with quality
Australian-grown fresh produce. Thousands of suppliers provide us with
Own Brand and proprietary branded
products. We are working with Own
Brand suppliers to improve Own Brand
By doing this, we are supporting
Australian farmers and growers who

provide us with healthy, quality
products. Our support includes the
$50 million Coles Nurture Fund. help customers recycle. REDcycle
soft plastics recycling is available
in our supermarkets.
packaging recyclability, including
labelling on Own Brand products to
Transport and
distribution
Working with our logistics partners,
we are reducing our environmental
footprint through more efficient fleet
movements. We are also ensuring
customers are provided with quality,
safe products by conducting
selected quality checks when
produce arrives at our fresh produce
distribution centres, with additional
checks for chilled products.
Suppliers
$29.9bn
supplier and
services spend
Team members
$4.8bn
payments and benefits
to team members
Shareholders
$873m
total dividends
paid
Governments
$2.6bn
cash taxes paid
and collected
Community
$139m
community
support
How we
create value
All figures above are as at 28 June 2020, with the exception of community support (30 June 2020).
Coles Group Limited 2020 Annual Report
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Coles
Online
Coles
Strategy
Convenience
Our sustainability achievements1
Retail and
store network
We support local economic growth
through investment in new stores and
infrastructure, while continuing to
reduce greenhouse gas emissions.
Innovation is key to providing online
grocery and convenient shopping
experiences to make life easier for our
customers. Providing safe, responsibly
sourced, nutritious products at
competitive prices is fundamental.
Team
members
With more than 118,000 team
members, including the largest
number of Aboriginal and Torres Strait
Islander team members in Australia’s
private sector, our workforce reflects
the diversity of our customers and
the community. A safe and inclusive
workforce for all is our priority.
Customers and
community
Through community partnerships,
we are supporting Australians and
reducing our environmental impact.
Our work with SecondBite and
Foodbank provides Australians in
need with healthy, nutritious food that
might otherwise go to waste. Disaster
relief and business continuity plans
support customers and communities
in times of extreme weather events
and other crises.
We are driven by our purpose to sustainably feed
all Australians to help them lead healthier, happier
lives, which means we need to consider our social
and environmental impacts in all that we do.

Sustainable
products
Best Sustainable Seafood
Supermarket in Australia
Awarded by MSC. Holder
of the award since 2017
Broadest range of RSPCA
Approved products of any
major Australian supermarket
Own Brand products
displaying Health
Star Rating 2,400+
Sustainable
environmental practices
Pieces of flexible plastic
through REDcycle since 2011 1bn+
Waste diverted from landfill 79%
Greenhouse gas emissions
(Scope 1 and 2) from 2009 36.5%
Sustainable
communities
Meals to people in need
since 2003 (equivalent of) 147m+
Funds to Redkite since 2013 $38m
Grants announced for 15
producers through Coles
Nurture Fund in FY20 $3.6m
1 All references are as at 30 June 2020, with the exception of funds to Redkite which is as at 28 June 2020.
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Together with Michelin-starred chef and Coles ambassador Curtis Stone, Coles
announced a new partnership with the Stephanie Alexander Kitchen Garden
Foundation in February 2020. Providing thousands of children across Australia
access to a pleasurable food education program helps them develop a healthy
relationship with food, self-confidence and life skills.
15
Sustainability
snapshot
Just over a year ago, we launched
our vision to become the most trusted
retailer in Australia and grow long-term
shareholder value. We also launched
our purpose to sustainability feed
all Australians to help them lead
healthier, happier lives.
Central to that purpose is trust and
that means delivering against our key
sustainability pillars.
Drought, devastating bushfires, a global pandemic – 2020
brought challenges of exceptional scale. In this extraordinary
year, our team members, suppliers and customers rose to the
challenges and provided essential supplies to Australians in
need, helping to bring our vision and purpose to life.
Central to that vision and purpose is trust. We will build trust by
continuously improving our management, performance and
reporting in regard to social and environmental impacts and
opportunities under the three key pillars of our Sustainability
Strategy – Sustainable communities, Sustainable products
and Sustainable environmental practices.
We contribute to the following
United Nations Sustainable Development Goals:
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Sustainable communities
Sustainable communities involves supporting our customers,
team members and producers. It is about investing in and
giving back to the community and doing the right thing by
farmers, suppliers and their workers.
Coles Supermarkets has an Australian-first sourcing policy
to provide our customers with quality Australian-grown fresh
produce as a first priority. In FY20, 96% of fresh produce, by
volume, was sourced from our supply partners from all over
Australia, excluding floral, nuts, dried fruit, sauces, dressings
and packaged salads. In FY20, 100% of fresh lamb, pork,
chicken, beef, milk and eggs and 100% of Own Brand
frozen vegetables were Australian grown.
During the year, we announced $3.6m in Coles Nurture
Fund grants provided to 15 recipients who are improving
their sustainability, rebuilding after bushfires and producing
more Australian made food and beverages.
Sustainable communities means creating a workplace
for more than 118,000 team members that reflects the
communities in which they live and work. With more than
4,700 Aboriginal and Torres Strait Islander team members,
Coles is proud to be the largest private sector employer of
Indigenous Australians.
A company-wide Human Rights Strategy was introduced
in FY20, including a refreshed Ethical Sourcing Policy and
supplier requirements.
In a first for the Australian retail sector, Coles worked with
three key unions to develop the Coles Ethical Retail Supply
Chain Accord which aims to achieve a safe, sustainable,
ethical and fair retail supply chain for workers regardless of
their employment, citizenship or visa status.
More about our community partnerships and support can
be found in our 2020 Sustainability Report.
Victorian dairy farmer Peter Hemphill (pictured with his grandchildren) was
among 15 producers awarded a Coles Nurture Fund grant in FY20.
Coles Group Limited 2020 Annual Report
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Sustainable products
Sustainable products focuses on healthy food choices
and healthy lifestyles. It also means sourcing products
responsibly and ethically. It includes our commitment to
animal welfare and to responsibly sourced seafood.
We introduced new health food ranges including vegan
and vegetarian options, and supported healthy lifestyle
programs. Our new three-year partnership with the
Stephanie Alexander Kitchen Garden Foundation gives
thousands of children, at more than 2,000 schools and early
learning centres, access to food education to help them
develop a healthy relationship with food.
In FY20, Coles was awarded the MSC Best Sustainable
Seafood Supermarket in Australia. The MSC has named
Coles holder of the award since 2017, recognising that we
have the widest eco-labelled fresh seafood range of any
Australian supermarket.
We want to make life easier for our customers by offering
quality, safe and trusted products – sourced in an ethical
and transparent way – to help them make healthy and
sustainable choices.
As customers’ needs are changing, we continue to offer new
ranges and products. An affordable healthy food range was
launched in FY20 and we provided more meat-free protein
alternatives. Our Own Brand food and drink standard range
is now free of artificial colours and artificial flavours.
We are committed to providing our customers with safe,
high-quality Own Brand products. Our commitment is
supported by our rigorous supplier requirements, our
auditing and inspection program and in-store standards.
Julie and her son, Reece, with Mum’s Sause, which was launched in July 2019
to raise funds to help sick children in hospitals across Australia as part of the
Curing Homesickness initiative.
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Sustainable environmental practices
Sustainable environmental practices means reducing the
impact of our own operations as well as making it easier for
customers to reduce their environmental impact.
As a food retailer, we love food and do not want it to go
to waste. Every Coles supermarket and distribution centre
is connected with a food waste solution, something first
achieved at the end of FY19. Our first choice for unsold,
edible food is to donate it to food rescue organisations.
Following that, we have other food waste solutions including
donation to farmers and animal or wildlife services, organics
collections and in-store food waste disposal equipment.
Packaging continues to be a focus. In November 2019,
Coles won the APCO’s large retailer industry award for our
achievements in sustainable packaging design, recycling
initiatives and product stewardship.
REDcycle soft plastics collection is offered in our
supermarkets. Since the program began at Coles in 2011,
more than one billion pieces of soft plastic have been
diverted from landfill.
We are facing into the impacts of climate change and
need to adapt to respond to extreme weather events and
to maintain security of food supply. More information about
our response to climate change is in the Risk Management
section of this report.
Coles has a responsibility to support our team members,
customers, suppliers and the communities in which we live
and work and is committed to making a positive difference.
Understanding and meeting these responsibilities are key
to achieving our vision to becoming Australia’s most trusted
retailer and growing long-term value for our shareholders.
Team members at our Coles Local Rose Bay store wear polo shirts made
from 65% recycled plastic bottles.
Coles Group Limited 2020 Annual Report
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Support for
customers, suppliers
and communities
Coles supported farmers and communities dealing with
the impact of drought conditions across many parts of
Australia during the past year. With help from our community
partners, we also provided much-needed assistance to
flood-affected communities.
Responding to drought and floods
Over the past two financial years, Coles has committed
more than $18 million to drought relief. In FY20, Coles
donated $1 million from the Coles Nurture Fund to the
Country Women’s Association’s Drought Relief Fund
to distribute to farming families affected by drought.
In addition, Coles raised a further $864,476 for the
CWA Drought Appeal through customer donations
at supermarkets and liquor stores and from the sale of
$2 donation cards in the lead-up to Christmas.
Together, these funds donated and raised by Coles in FY20
for the CWA Drought Appeal resulted in more than 920
farming families receiving grants to help them pay household
expenses such as medical, energy and grocery bills.
During October and November 2019, Coles donated
and delivered around 140,000 litres of drinking water to
local communities in northern New South Wales including
Tenterfield, Guyra, Glen Innes, Ebor and Armidale, where
local catchments were depleted by the combination of
drought and bushfires.
Amid heavy rainfall and flooding in parts of Queensland in
February 2020, Coles converted its delivery of goods from
rail to road to ensure food and groceries could reach our
customers.
To help people and communities to recover from the
bushfires, we also launched a fundraising appeal for Red
Cross. By raising $3.2 million for bushfire support, our funds
enabled Red Cross to provide grants to hundreds of people
to help them meet immediate needs, make repairs, cover
hospital costs or re-establish a safe place to live.
Campaigns to support farmers
With many fresh produce suppliers finding their crops
impacted by drought during the year, Coles worked with
farmers to vary our product specifications and worked
with industry stakeholders to encourage customers to look
beyond a few surface imperfections. This provided valuable
support to farmers by helping them sell their crops at the
best possible price, while ensuring ongoing supply of great
quality Australian fruit and vegetables for our customers.
Flooding caused havoc on roads in some parts of New South Wales and
Queensland in early 2020 while some areas barely received a drop of rain.
Pictured is a Coles truck at Warriewood in northern Sydney in February.
Coles Tenterfield Store Manager Kyle (left) with Tenterfield Shire Councillor
and NSW Farmers local branch chair Bronwyn Petrie (middle), Tenterfield
Shire Deputy Mayor Greg Sauer (right) and local residents Howard and
Carmel with one of many truckloads of donated bottled water. Coles
donated around 140,000 litres of bottled water to local communities in
northern New South Wales of which around 100,000 litres was donated to
Tenterfield residents.
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Food donations
Coles donated food, water
and other essentials to bushfireaffected communities and
emergency services.
We worked with Foodbank,
donating 47 pallets of food, fresh
fruit, UHT milk, coffee, tea and
snacks for relief centres, aged care
facilities and emergency services.
We supported animal sanctuaries
and zoos including Mogo Zoo
(Bateman’s Bay), Adelaide Koala
and Wildlife Hospital, Kangaroo
Island Wildlife Network, and Live
Stock SA with donations of fruit,
vegetables and animal feed.
Firefighter donations
To acknowledge the amazing
courage and dedication of
volunteer firefighters, Coles
donated $3 million in gift cards
to over 6,000 rural fire brigades
across Australia in December 2019.
This provided essential funds
for brigades to stock up supplies
of food and essentials for their
stations or run a thank you event
with their members.
The gift cards were distributed
via the NSW Rural Fire Service,
Queensland Rural Fire Service,
Country Fire Authority in Victoria,
SA Country Fire Service, Tasmanian
Fire Service, the ACT Rural Fire
Service, Bushfire Volunteers (WA),
WA Volunteer Fire and Rescue
Service, WA Volunteer Fire and
Emergency Service and Bushfires NT.
Red Cross donations
Through Coles Supermarkets,
Coles Liquor stores and Coles Express
stores, we launched an appeal for
the Red Cross Disaster Relief and
Recovery Fund in November 2019.
By double matching customer
donations for a specific period,
Coles contributed more than
$1 million and together with our
customers provided more than
$3.2 million to the fund.
Our donations enabled Red Cross
to provide emergency assistance,
psychological first aid and longerterm community support to
Australians affected by bushfires.
Bushfires
Coles regularly supports Australians through times of hardship
and natural disaster. During the summer bushfires, we played
an important role in supporting affected communities and
emergency services with direct donations and fundraising to
support longer-term relief.
Coles Group Limited 2020 Annual Report
21
John, Regional Manager, at the Bateman’s Bay store (top left), Coles State General Manager for South Australia and Northern Territory, Sophie, at a fundraising
trivia night that raised funds for people affected by the Cudlee Creek and Kangaroo Island bushfires (top right), the burnt remains of a Coles team member’s
house and car (middle left), residents evacuated as fires sweep through Bateman’s Bay in New South Wales (middle right) and fire trucks re-fuelling at the Moss
Vale Coles Express during the bushfires (bottom).
Bateman’s Bay
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COVID–19
The COVID-19 pandemic highlighted our role as an essential
service to the community, and we worked closely with
government and industry bodies to ensure all Australians had
safe access to essential food and groceries.
Safety our greatest priority

Since the outbreak of COVID-19, Coles has played an
important role in providing an essential service to the
community while prioritising the safety of our team
members and customers. on Tuesdays and Thursdays.
Team member and customer safety is our highest priority,
and Coles followed the expert advice from state and
To further support more vulnerable Australians, we
established Coles Online Priority Service (COPS) in April
to offer home delivery and Click & Collect services to
customers who were unable to visit a store.
federal health authorities on how to reduce the risk of Another way we provided extra support to disadvantaged
people was by donating additional food and groceries to
infection in our stores and through our supply chain.
The frequency with which we clean our stores was increased,

particularly in high-traffic areas such as checkouts, while
safety screens and floor decals were installed to assist with
social distancing measures including the introduction of limits
on the number of customers in stores at our busiest times.
Responding to demand our stores and distribution centres, we donated extra food
and groceries to the retail value of nearly $7.9 million to
Foodbank and SecondBite to distribute to food charities
across Australia.
In April, we also teamed up with Indigenous corporations
and local charities to deliver and donate more than 80
To help address the unprecedented customer demand
seen early in the outbreak, we invested in our supply chain,
opening pop-up distribution centres in New South Wales,
Victoria and Queensland.
We introduced product limits on the most in-demand

products so that more customers could access essentials. To serve more customers, replenish shelves faster, keep
stores cleaner and offer employment for Australians whose
We also worked with suppliers to prioritise production of
groceries they could deliver in the greatest volume until
demand returned to more normal levels.
Prioritising our vulnerable citizens

We also provided Australia’s elderly and most vulnerable,
together with emergency and healthcare workers, with members safe.
better access to groceries by introducing Coles Community
Hour at all our supermarkets across Australia in March.
This initiative, which ran until May 8, involved temporarily
changing our trading hours to 7am to 8pm on weekdays
and dedicating the first hour of trade exclusively to elderly
and vulnerable customers on Mondays, Wednesdays and
Fridays; and to emergency services and healthcare workers
our food relief partners, Foodbank and SecondBite, during
COVID-19. In addition to the food we regularly donate from
pallets – the equivalent of 50 tonnes – of food and grocery
essentials to Indigenous communities across the Northern
Territory.
Recruiting Australians in store
jobs had been impacted by COVID-19, we recruited
thousands of additional casual team members.
More security guards were also employed to help
manage customer numbers and keep customers and team
Team members working throughout the challenging
period were rewarded for their extraordinary efforts
with an additional team member discount and a thank
you payment for those working in stores and supply chain.
Coles Group Limited 2020 Annual Report
23
Throughout COVID-19, we prioritised the safety of our team members and customers, providing Australians access to essential goods and services, and
supporting communities and people in need. Customers at Coles Southland (top), Brisbane mother Anna with her daughter Olivia using sanitiser in
store (middle left), Salvation Army’s Major Brendan Nottle with Coles Online team member Matthew and Collingwood Football Club Director of Stadia
and Community, David Emerson, with donations of 2,000 convenience meals as well as frozen vegetables and pantry items for residents in Magpie Nest’s
housing program which accommodates people who have been sleeping rough on Melbourne’s streets and women fleeing domestic violence (middle right);
and Coles Eastland Store Support Manager Drew delivers groceries to 97 year-old World War II veteran Des (bottom right).
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Governance
at Coles
In our first full year as a listed entity, Coles’ corporate governance
framework has been integral to our response to the events of FY20.
We are committed to the highest standards of corporate governance
and believe that a robust and transparent governance framework is
central to our success.

Board Overseeing Coles’ response to the unforeseen national
and global challenges presented during FY20 including
their impact on our team members, customers, suppliers
and local communities.
Hosting the Company’s first Annual General Meeting in
November 2019, conducting the first Board performance
review and adopting the new Coles values which build on
the existing LEaD framework and behaviours.
Strategy Executing the first year of our strategy, with good progress
made on delivering our vision to ‘Become the most trusted
retailer in Australia and grow long-term shareholder value’
underpinned by our three strategic pillars: Inspire Customers,
Smarter Selling and Win Together. This includes progress
against our eight strategic KPIs, which were laid out to
measure the success of our strategy.
Risk management Implementing initiatives that continue to drive an uplift in our risk
management maturity. This has entailed the establishment of
our risk appetite framework, including definition, measurement,
monitoring and reporting of risk appetite for our material risks.
We also implemented a technology platform to facilitate the
management of risks and major compliance programs.
Diversity
and inclusion Continuing our progress towards achieving our Better
Together objectives, including in relation to gender diversity,
with the proportion of men and women across the entire
Coles workforce for FY20 being 49.3% men and 50.7% women.
In addition, at the end of FY20 we employed more than 4,700
Aboriginal and Torres Strait Islander people across our stores,
distribution centres and store support centres, representing
3.8% of team members.
The Group’s FY20 key corporate governance highlights and focus areas included:
Coles Group Limited 2020 Annual Report
25
Board role and responsibilities
The Board provides leadership and approves the strategic
direction and objectives of the Group in the long-term
interests of, and to maximise value to, shareholders. The
Board is accountable to shareholders for the overall
performance of the Company, having regard to the
interests of other stakeholders, including team members,
customers, suppliers and the broader community.
The Board has a charter that outlines its responsibilities,
including powers that are expressly reserved to the Board,
and powers that are specifically delegated to the CEO and
management.
Board composition
The Constitution states that the number of directors shall be
not less than three directors and not more than 10 directors.
Other than the Managing Director, directors may not retain
office without re-election for more than three years or
past the third annual general meeting following their last
election or re-election. Any newly appointed directors
are required to seek election at the first annual general
meeting after their appointment.
The Board will review periodically its composition
and the duration of terms served by directors, upon
recommendation from the Nomination Committee.

The Board
Managing Director and
Chief Executive Officer
Executive Leadership Team
Coles Team Members
Audit and Risk
Committee
People and
Culture
Committee
Nomination
Committee
Corporate governance framework
Coles’ 2020 Corporate Governance Statement contains a
comprehensive overview of our corporate governance
framework and highlights and is available at
www.colesgroup.com.au/corporategovernance.
Chairman James Graham AM addresses shareholders at the first Coles Annual General Meeting in November 2019.
Coles Group Limited 2020 Annual Report
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Board skills matrix
The Board recognises the importance of having directors
who possess a broad range of skills, background, expertise,
diversity and experience in order to facilitate constructive
decision-making and facilitate good governance
processes and procedures.
The Board, on the recommendation of the Nomination
Committee, determines the composition, size and structure
requirements for the Board and will regularly review its mix
of skills to make sure it covers the skills needed to address
existing and emerging business and governance issues
relevant to the Company.
The current mix of skills and experience represented on the
Board is set out in the skills matrix below:

SKILL/
EXPERIENCE EXPLANATION
Experience serving on boards in diverse industries and for
a range of organisations, including public listed entities
or other large, complex organisations. An awareness of
global practices and trends. Experience in implementing
high standards of governance in a large organisation and
assessing the effectiveness of senior management.
Effective senior leadership in a large, complex organisation
or public listed company. Successfully leading organisational
transformation and delivering sustained business success,
including through line management responsibilities.
Senior executive or other experience in fnancial accounting
and reporting, internal fnancial and risk controls, corporate
fnance and/or restructuring, corporate transactions, including
ability to probe the adequacies of fnancial and risk controls.
Demonstrated ability to identify and critically assess strategic
opportunities and threats and to develop and implement
successful strategies to create sustained, resilient business
outcomes. Ability to question and challenge on delivery
against agreed strategic planning objectives.
Experience overseeing or implementing a company’s culture
and people management framework, including succession
planning to develop talent, culture and identity. Board or
senior executive experience in applying remuneration policy
and framework, including linking remuneration to strategy
and performance, and the legislative and contractual
framework governing remuneration.
Understanding of and experience in identifying and
monitoring key risks to an organisation and implementing
appropriate risk management frameworks and procedures
and controls.
Senior management experience in the retail and fast moving
consumer goods (FMCG) industry, particularly in the food
and liquor industry, including an in-depth knowledge of
merchandising, product development, exporting, logistics
and customer strategy.
Advanced understanding of customer service delivery
models, benchmarking and oversight.
Senior executive experience in managing or overseeing the
operation of supply chains and distribution models in large,
complex entities, including retail suppliers.
Senior manager or equivalent experience in national or
international business, providing exposure to a range of
interstate or international political, regulatory and business
environments.
Experience in property development and asset management.
Senior executive experience in consumer and brand
marketing and in e-commerce and digital media, including
in the retail industry.
Expertise and experience in the adoption and implementation
of new technology. Understanding of key factors relevant to
digital disruption and innovation, including opportunities
to leverage digital technologies and cyber security and
understanding the use of data and analytics.
Identifcation of key health and safety issues, including
management of workplace safety, and mental and physical
health. Experience in managing and driving environmental
management and social responsibility initiatives, including
in relation to sustainability and climate change.
Senior management experience working in diverse political,
cultural, regulatory and business environments. Experience
in regulatory and competition policy and influencing public
policy decisions and outcomes, particularly in relation to
regulation relevant to food and liquor industries.
Number of Directors
with the requisite skill
Corporate
governance 8
Executive
experience 8
Financial acumen 8
Strategic thinking 8
People, culture and
remuneration 8
Risk management 8
Retail and FMCG
skills and experience 6
Customer service
delivery 7
Supply chains 6
Interstate / global
business experience 8
Property
development and
asset management 4
Marketing 6
Digital technology
and innovation 8
Sustainability,
environment, health
and safety 7
Regulatory and
public policy 7
Coles Group Limited 2020 Annual Report
27
James Graham AM
Chairman of the Board
Chairman of the Nomination
Committee and Member
of the People and Culture
Committee
David Cheesewright
Member of the Nomination
Committee and the People
and Culture Committee
Abi Cleland
Member of the Nomination
Committee and the People
and Culture Committee
Wendy Stops
Member of the Nomination
Committee and the Audit
and Risk Committee
Steven Cain
Managing Director and
Chief Executive Officer
Jacqueline Chow
Member of the Nomination
Committee and the Audit
and Risk Committee
Richard Freudenstein
Chairman of the People
and Culture Committee
and Member of the
Nomination Committee
Zlatko Todorcevski
Chairman of the Audit
and Risk Committee
and Member of the
Nomination Committee
Board of
Directors
Biographical details of the Board of Directors can be found on pages 66–67.
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A culture of acting lawfully,
ethically and responsibly

Coles has a number of company policies that promote a
culture of acting lawfully, ethically and responsibly and
outline expected standards of behaviour. These policies
include the following: Anti-bribery and Corruption Policy
Code of Conduct
Coles has an Anti-bribery and Corruption Policy. In FY20,
the Board approved updates to the policy in response to
regulatory changes. The policy stipulates that Coles has zero
tolerance for bribery and corruption in any form. It prohibits
directors and team members from engaging in activity
Coles has a Code of Conduct which sets out the standards
of behaviour which are expected of its directors and team
members in their interactions with customers, suppliers, the
community and each other. The Code of Conduct was
reviewed in FY20 and was updated to reflect the Company’s
vision, purpose and strategy as well as the values and LEaD
behaviours. Our values of Customer obsession, Passion and

pace, Responsibility and Health and happiness define what’s
important to us, and our LEaD behaviours of Look ahead,
Energise everyone and Deliver with pride guide how we work Sustainability, Health, Safety and Wellbeing
Coles is committed to providing a safe and healthy
as a team and continue to build on the strong relationships environment for team members, customers, suppliers,
contractors, visitors and supply chain partners. The Health,
with our suppliers and customers.
Whistleblower Policy
As part of Coles’ commitment to the highest standards of
conduct and ethical behaviour in all its business activities,

the Company has a Whistleblower Policy to encourage
anyone to come forward with concerns. The policy, which
was reviewed and updated in FY20, requires Coles team
members, directors and officers who have reasonable
grounds to suspect that ‘Potential Misconduct’ has
occurred or is occurring within or against Coles to make a
report. The policy also encourages anyone else who has
reasonable grounds to suspect that ‘Potential Misconduct’
has occurred or is occurring within or against Coles to make
a report. Potential Misconduct is any suspected or actual
misconduct or an improper state of affairs or circumstances
in relation to Coles. It includes any unethical, illegal, corrupt,
fraudulent or undesirable conduct or any breach of Coles’
policies such as its Code of Conduct by a Coles director,
team member, contractor, supplier, tenderer or any other
person who has business dealings with Coles. Securities Dealing Policy
Coles has a Securities Dealing Policy to ensure compliance
with insider trading laws, protect the reputation of
the Group, its directors and team members, maintain
confidence in the trading of the Company’s securities
and prohibit specific types of transactions. In general,
directors, members of the Executive Leadership Team and
other executives at the General Manager level and above
(Restricted Persons) may not deal in Coles’ securities during
specified periods (known as ‘blackout periods’) that cover
the period leading up to and immediately following the
release of the quarterly retail sales results, half-yearly results
and full-year results. Outside of those blackout periods,
Restricted Persons must seek prior approval to deal in Coles’
securities from the Company Secretary (or their delegate).
that constitutes bribery or corruption and sets out a number
of guidelines to assist team members to determine what
constitutes bribery or corruption. It covers any activity or
behaviour undertaken in connection with Coles, regardless of
the geographical location in which that activity or behaviour
occurs.
Safety and Wellbeing Policy describes the systems and
processes in place to manage the risks and hazards that
come with operating Coles’ business and ensure that
Coles’ actions are appropriate to our risk profile.

Coles Group Limited 2020 Annual Report
29
Steven Cain
Managing Director
and Chief
Executive Officer
Matthew Swindells
Chief Operations
Officer
Kris Webb
Chief People
Officer
Darren Blackhurst
Chief Executive
Liquor
George Saoud
Chief Executive
Emerging
Businesses
Sally Fielke
General Manager
Corporate Affairs
Leah Weckert
Chief Financial
Officer
Thinus Keevé
Chief Sustainability,
Property & Export
Officer
Roger Sniezek
Chief Information
Officer
Ian Bowring
Group Executive
Transformation
Greg Davis
Chief Executive
Commercial
& Express
Lisa Ronson
Chief Marketing
Officer
David Brewster
Chief Legal
& Safety Officer
Daniella Pereira
Company
Secretary
Executive
Leadership Team
Ben Hassing
Chief Executive
eCommerce
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Financial Review
Coles Group Limited 2020 Annual Report
31
Coles is a leading Australian retailer selling customers
everyday products including fresh food, groceries, general
merchandise and liquor, through its extensive store network
and online platforms.
Coles also sells convenience products and, under its alliance
with Viva Energy (Viva), is a commission agent for retail
fuel sales operating under the Coles Express brand. Coles
operates some of Australia’s most well recognised brands,
including Coles, Coles Local, Coles Express, Liquorland,
First Choice Liquor Market and Vintage Cellars. In addition,
Coles sells customers financial and lifestyle services and is
a 50% shareholder of flybuys, a loyalty program covering
more than six million active households.
Coles operates and maintains 2,447 stores nationally
across its businesses and employs more than 118,000 team
members.
Coles’ core competencies include merchandising
and supplier relationships, marketing, maintaining and
operating a national store network, operating a fully
integrated supply chain, including logistics, and a national
distribution centre network.
The Group’s reportable segments are:
• Supermarkets: fresh food, groceries and general
merchandise retailer with a national network of 824
supermarkets, including Coles Online and Coles
Financial Services
• Liquor: liquor retailer with 910 stores nationally under
the brands Liquorland, First Choice, First Choice Liquor
Market and Vintage Cellars, including online liquor
delivery services through Coles Online and Liquor Direct
• Express: convenience store operator and commission
agent for retail fuel sales across 713 outlets nationally
Other business operations that are not separately reportable,
such as Property, as well as costs associated with enterprise
functions, such as Treasury, are included in Other.
Our vision is to become the most trusted retailer in Australia
and grow long-term shareholder value. Achieving this vision
requires us to deliver on our purpose, which is to sustainably
feed all Australians to help them lead healthier, happier lives.
Our strategy, ‘Winning in our Second Century’, represents
our plan to deliver on this purpose. There are three
strategic pillars: Inspire Customers, Smarter Selling, and
Win Together. Across each of these pillars, we are planning
to win in our second century by ensuring that our strategy
delivers a competitive advantage through five strategic
differentiators:
1. Win in online food and drinks with an optimised store
and supply chain network
2. Be a great value Own Brand powerhouse and
destination for health
3. Achieve long-term structural cost advantage through
automation and technology partnerships
4. Create Australia’s most sustainable supermarket
5. Deliver through team engagement and pace of
execution
We have made progress against each of these three pillars
over the past year, supported by our existing Look ahead,
Energise everyone and Deliver with pride (LEaD) behaviours
framework and our newly-launched Coles values.
Business model
and strategy
Coles operates and maintains 2,447 stores
nationally across its businesses and employs
more than 118,000 team members.
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Inspire Customers through best value food and drink solutions
to make lives easier.
• Customer obsessed
• Tailored offer with trusted and targeted value
• Own Brand powerhouse
• Destination for convenience and health
• Leading anytime, anywhere shopping
• Accelerate growth through new markets

Delivering inspiring solutions, with the right offer at the right
price, where and when our customers want it.
At Coles, we strive to be customer obsessed and our customers
are responding, with our customer satisfaction score, as
measured by Tell Coles, increasing to 88.2% in the fourth enhancing our customer offer to ensure we are their
preferred destination for convenience and health solutions.
Customers are increasingly seeking options in terms of
where and when they shop. To this end, Coles is investing
to become Australia’s leading digital retailer, with online
quarter as availability improved following initial COVID-19
pantry stocking impacts (83.4% in the third quarter).

Customer obsession pervades our strategy. Landing the
right offer in the right location and ensuring our customers
trust Coles to deliver them the best value, with 20% of FY20
sales at everyday low prices and the ‘Helping lower the cost Coles is also offering solutions to new customer groups,
continuing the drive to expand both our export and B2B
businesses. Coles recently opened an office in Shanghai to
better support our export customers in Asia.
of…’ campaign focused on lowering the cost of breakfast,
lunch and dinner.
Continuing to innovate to build an Own Brand powerhouse,
and reinforcing the 10% sales growth achieved in FY20, are
critical to our commitment to deliver trusted value and to
lower the cost of living for our customers through affordable
quality.
Coles is also delivering on those areas that are increasing
in importance for our customers as lifestyles change.
This includes expanding our convenience meal range
and rolling it out to approximately 150 stores in FY20, and
sales growing by 18% in FY20, by delivering an expanded,
personalised and targeted offer online.
Inspire Customers
In 2020, Coles launched a ‘What’s for Dinner?’ campaign to provide customers with a collection of easy and fast recipes to produce tasty meals at great value.
Coles Group Limited 2020 Annual Report
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Smarter Selling through efficiency and pace of change.
• Technology-led stores & supply chain
• Strategic sourcing
• Optimised network and formats
• Efficient and agile Store Support Centres
Coles is committed to establishing a structural cost
advantage by increasing efficiency through rapid
innovation and execution at pace. Technology and digital
investment supporting efficiency and automation in our
supply chain, stores and Store Support Centre is critical,
as is the continued optimisation of our network and store
formats, and our supplier network.
The technology-led optimisation and automation of our
supply chain to reduce costs and improve availability is
continuing to accelerate with construction starting on our
first fully automated distribution centre in Queensland.
Leases have also been signed for two online fulfilment
centres in Sydney and Melbourne that will enable Coles to
win in online food and drinks. Technological innovation is a
critical element of efficiency in the Store Support Centre with
multiple SAP system investments underway or completed.
Coles is building an optimised store network by opening
new stores in key network gaps and growth corridors, while
closing underperforming stores.
This process of optimisation is being reinforced by an
ongoing program of store renewals, with the rollout of
‘Format A’ stores, a premium mainline supermarket format
for our best trading stores, and ‘Format C’ stores, a highly
efficient format for lower trading stores that allows Coles to
continue to deliver a high quality offer to customers that
may otherwise not be able to access that offer.
Coles is also rolling out the innovative Coles Local format,
a premium smaller format supermarket that delivers both
great value and premium solutions to customers.
Coles now has 29 Format A stores, 33 Format C and four
Coles Local stores across the network, including the first
Coles Local in New South Wales at Rose Bay.
Smarter Selling
Team members Karra and Jess at the Parkinson Distribution Centre in Brisbane plan logistics for the transport of food and groceries across Queensland.
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Win Together
Win Together with our team members, suppliers and
communities.
• Wellbeing and safety in our DNA
• Great place to work
• Drive generational sustainability
• Better together through diversity
• Innovation through partnerships
Coles is focused on helping all Australians to lead healthier
and happier lives, including our team members, our
suppliers and our communities.
Ensuring the wellbeing and safety of team members is a key
part of making Coles a great place to work and partner
with. In FY20, Coles improved its TRIFR by 18.3% to 22.7.

To help deliver on our purpose, Coles is committed to
attracting, engaging and retaining the very best talent. adoption of Coles’ first Human Rights Strategy, and the
strengthening of our ethical sourcing team with dedicated
Engagement continues to improve, with our engagement
score increasing by seven percentage points in FY20. team members with specialised skills.
Coles is committed to driving generational sustainability
by creating Australia’s most sustainable supermarket.
Our Sustainability Strategy, aligned with the United
Nations Global Compact and United Nations Sustainable
Development Goals, is focused on supporting sustainable
communities, delivering sustainable products, and
following sustainable environmental practices.
Our support for Australian communities has never been
more apparent than in the drought, bushfire and COVID-19
pandemic affected FY20. Coles’ contribution to the
Australian community in FY20 included donations of gift
cards to rural fire brigades and additional food and groceries
to charity partners. We are focused on making life easier for
our customers by offering quality, trusted products while
at the same time, working to minimise our environmental
impacts through sustainable environmental practices.
Coles is committed to being a diverse and inclusive
workplace that is reflective of the customers and community
we serve. Coles is proud to be Australia’s largest private sector
employer of Aboriginal and Torres Strait Islander people.
Coles believes that respect for human rights is essential
to achieving Coles’ vision to become the most trusted
retailer in Australia. We have continued to enhance our
Ethical Sourcing Program, including the development and
FY17 FY18
38.8
34.4
27.8*
22.7
FY19 FY20
Total recordable injury frequency rate (TRIFR)
Number of all injury types per million hours worked
7pp
Improvement in team member engagement
(percentage points)
* Restated due to maturation of data
Coles proudly announced a five-year partnership in FY20 with the AFL.
The stunning growth of AFLW has made a powerful statement
about inclusion of females in professional sport.
AFL General Manager Commercial Kylie Rogers said, ‘The partnership
is a natural fit, with both the AFL and Coles dedicated to giving back to
local communities and providing opportunities for all Australians. Our
commitment to each other ensures we can continue to invest back into
our sport to promote participation and growth at all levels of the game.’
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Group
performance
For continuing operations of the Group:

$M FY20 FY19 CHANGE
Sales revenue
Supermarkets 32,993 30,993 6.5%
Liquor 3,308 3,205 3.2%
Express 1,107 3,978 (72.2%)
Group sales revenue 37,408 38,176 (2.0%)
EBIT
Supermarkets 1,618 1,191 35.9%
Liquor 138 133 3.8%
Express 33 46 (28.3%)
Other (27) (27) –
Significant items – 124 n/m1
Group EBIT 1,762 1,467 20.1%
Financing costs (443) (42) n/m1
Income tax expense (341) (347) (1.7%)
Profit after tax 978 1,078 (9.3%)
Retail (non-IFRS)2
Group sales revenue3 37,408 35,001 6.9%
Group EBIT4 1,387 1,325 4.7%
Profit after tax4 951 888 7.1%
1 n/m denotes not meaningful.
2 Refer to Non-IFRS Information section for a comparison of statutory (IFRS) and retail (non-IFRS) results.
3 Retail sales revenue for FY19 excludes fuel sales and hotel sales.
4 Retail EBIT and profit after tax excludes the impact of AASB 16 and significant items in FY20, and hotels and significant items in FY19.
Highlights
• Statutory sales revenue growth of 6.5% in Supermarkets and
3.2% in Liquor
• Group EBIT on a retail (non-IFRS) basis returned to growth for
the first time in four years
• Robust balance sheet with investment-grade credit metrics
• The Board has determined a fully franked final dividend
of 27.5 cents per share
Performance overview
The financial and operating performance of the Group is
presented on a statutory (IFRS) basis. Results prepared on a
retail (non-IFRS) basis have also been included to support
an understanding of comparable business performance.
Further details relating to the presentation of retail results
are provided in the Non-IFRS Information section.
Coles Group Limited 2020 Annual Report
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Statutory Sales revenue for the Group reduced by 2.0%
to $37,408 million, due to a 72.2% reduction in Express
revenues driven by the move to a commission agent model
under the New Alliance Agreement, effective 1 March
2019. In accordance with the terms of the New Alliance
Agreement, Express no longer recognises gross fuel sales
revenue; however, it is entitled to commission income from
fuel sold at Alliance sites (recognised in ‘other operating
revenue’). Partly offsetting this decline was sales growth in
the Supermarkets and Liquor segments.
On a retail basis, sales revenue for the Group increased 6.9%
to $37,408 million driven by improved trading performance
in Supermarkets from successful value and collectible
campaigns, tailored range reviews and Own Brand sales
growth. Liquor revenue also increased from sales growth
in Exclusive Liquor Brands (ELB) and benefits from First
Choice Liquor Market conversions. Both Supermarkets and
Liquor experienced a trading uplift in the latter part of the
year from increased demand for in-home consumption
associated with the COVID-19 pandemic.
Statutory Group EBIT increased 20.1% to $1,762 million
primarily due to the impact of a new accounting standard,
AASB 16 Leases (AASB 16), which was effective for the
Group from 1 July 2019. This resulted in an increase in EBIT of
$375 million for the year. In accordance with an allowable
election under the standard, prior year comparatives have
not been restated. For a more detailed analysis of the
financial effects of applying AASB 16, refer to Impact of
AASB 16 Leases below. Partially offsetting this increase was
a pre-tax gain of $124 million relating to significant items
recognised in the prior year.
On a retail basis, Group EBIT increased 4.7% to $1,387
million reflecting improved trading performance and cost
management initiatives in Supermarkets, partly offset by
the New Alliance Agreement and lower fuel volumes in
Express. Liquor EBIT remained consistent with the prior year.
Statutory profit after tax for the Group decreased 9.3% to
$978 million driven by lower Express earnings, the net cost
associated with the application of AASB 16, and a reduced
net profit contribution from significant items relative to
the prior year. Collectively, these impacts offset growth in
Supermarkets earnings during the year.
On a retail basis, profit after tax increased by 7.1% to $951
million driven by earnings growth in Supermarkets, partly
offset by lower fuel volumes in Express.
Impacts of COVID-19
Coles has played an important role during the COVID-19
pandemic, providing an essential service to the community
while prioritising the safety of our team members and
customers.
Trading impacts
Supermarkets and Liquor
COVID-19 impacted Coles significantly in the second half
of the financial year, starting in late February with a spike
in trade from customer pantry stocking amid growing
concerns of a global pandemic. Demand continued to build
in Supermarkets, peaking in late March, as governmentimposed social distancing measures were introduced.
To meet the challenge of unprecedented customer
demand, Coles worked closely with suppliers and supply
chain partners to ensure stock was delivered to stores
as quickly as possible, including the opening of popup distribution centres in New South Wales, Victoria and
Queensland. Limits were also introduced for the most indemand products so that more customers could access
essentials. In March, the Coles Online platform was
repurposed as a priority service for vulnerable customers,
impacting ordinary trading operations until late April when
the platform was fully reopened to all customers. To further
support the community, Coles donated additional food
and groceries to our charity partners SecondBite and
Foodbank to distribute to food charities across Australia.
Supermarkets trading levels moderated in April, however
remained above that experienced pre-COVID-19. Store
and service costs also remained elevated, reflecting
the need for increased cleaning/sanitising and ongoing
measures to support social distancing in stores.
Liquor sales remained elevated throughout the fourth
quarter as government restrictions on the opening of
hotels, pubs, clubs and licensed venue operators remained
in place across most states.
Throughout this time, Coles’ priority was to maintain the
safety of team members and customers by investing in
store service, security and cleaning. This focus included
the installation of safety screens and signage to assist
with social distancing measures and limiting the number
of customers in stores at our busiest times. To recognise
the significant commitment of our team during this
unprecedented period, our team member discount was
temporarily doubled on eligible purchases and thank you
payments were also made to our store and distribution
centre team members.
Express
Coles Express was adversely impacted by lower fuel
volumes associated with the government-imposed stayat-home measures. The decrease in road traffic resulted in
significantly lower revenue, while costs increased to support
safety measures in store.
With the easing of these measures late in the year, fuel
volumes began to increase but did not return to preCOVID-19 levels. Earnings remained under pressure with
fixed costs and ongoing safety measures in store more than
offsetting revenue generated for the second half of the
financial year.
Coles Group Limited 2020 Annual Report
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no longer recognised. Receivables
The timing and recoverability of receivables has been
closely monitored for COVID-19 impacts on customers
and suppliers. Where appropriate, the deterioration in
credit quality has been considered in the measurement of
expected credit losses. No material financial impacts have
been recognised in the reporting period. The application of AASB 16 resulted in an unfavourable
impact to profit after income tax of $17 million, due to the
elimination of operating lease expenses being more than
offset by the recognition of depreciation and financing
costs associated with the Group’s AASB 16 lease portfolio.
Award covered salaried team member review
Self-insurance liabilities In February 2020, Coles announced it was conducting a
review into the pay arrangements for team members who
receive a salary and are covered by the General Retail
Industry Award 2010 (GRIA). The review does not relate to
team members who are remunerated in accordance with
approved enterprise agreements and who comprise over
90% of our workforce. As announced in February 2020,
Coles recognised a provision of $20 million in its half year
report in relation to expected remediation costs.
Coles engaged an independent actuary to ensure
actuarial liabilities appropriately reflect all relevant risks
as at 28 June 2020. COVID-19 assumptions have not been
material to the determination of self-insurance liabilities as
at the reporting date.
Leases
Coles, as a lessor has granted certain lessees concessions
with respect to contractual lease payments referred to
as rent abatements. Rent abatements have not had a
material impact on financial performance in FY20. Coles has continued to be supported by a dedicated team
of external experts as we complete the review. Remediation
to affected current and former team members commenced
in June 2020 and, at the date of this report, this process is
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Financial reporting impacts
Impairment of non-financial assets (including goodwill)
Forecast future cash flows used to support assets and cash
generating units (CGUs) have been updated to reflect the
best estimate of future impacts of the COVID-19 pandemic
on income and expenses. These impacts did not result in
any impairments during the year.
Furthermore, as at the reporting date, the Group’s freehold
proprieties are not considered to be significantly impacted
by the ongoing effects of COVID-19 as these assets are
expected to maintain a steady yield in a low interest rate
environment.
Equity accounted investment in associates and joint ventures
On 22 March 2020, the Australian Federal and State
governments announced restrictions for ‘non-essential’
businesses, forcing the closure of pubs, clubs, bars and
restaurants across all States and Territories.
These restrictions impacted Queensland Venue Co. Pty
Ltd (QVC), in which Coles has a 50% joint venture interest,
through the closure of hotel venues.
Under the terms of the joint venture, Coles’ joint venture
partner Australian Venue Co. (AVC) is economically
exposed to the operations and performance of the hotels
business. Coles’ economic rights under the joint venture
are limited to the retail liquor business which has not been
adversely impacted by COVID-19. Consequently, there are
no implications for the carrying value of Coles’ investment
Classification of COVID-19 as a significant item
While COVID-19 significantly impacted Coles’ financial

performance during the reporting period, the ability to Following the announcement in February 2020, the Fair
Work Ombudsman (FWO) commenced an investigation
separate and reliably measure the impacts from underlying
business performance is limited. Furthermore, the
pandemic has impacted our operations such that many
of the additional measures introduced to address and
mitigate the risks of COVID-19 during the reporting period
are likely to form part of business as usual activities for the
foreseeable future. On this basis, the impacts of COVID-19
have not been presented as a significant item in the FY20
Financial Report.
Impact of AASB 16 Leases
The Group applied AASB 16 for the first time in this reporting
period. The impact of the adoption of AASB 16 on the
Group’s FY20 Statement of Profit or Loss is set out below:

PRE-AASB 16
FY20
$M AASB 16
IMPACT
$M STATUTORY
FY20
$M
EBIT 1,387 375 1,762
Financing costs (44) (399) (443)
Profit before tax 1,343 (24) 1,319
Income tax expense (348) 7 (341)
Profit after income tax 995 (17) 978
Under AASB 16, operating lease expenses are no longer
recognised. Depreciation of the right-of-use assets
and financing costs associated with lease liabilities are
recognised in the Statement of Profit or Loss. The application
of AASB 16 resulted in a favourable impact to Group EBIT
of $375 million due to the depreciation charge associated
nearing its conclusion.

Coles Group Limited 2020 Annual Report
39
into the subject matter of the announcement. Coles has
had ongoing communications with the FWO since then.
In May 2020, Coles was notified that a class action
proceeding had been filed in the Federal Court of Australia
in relation to payment of Coles managers employed in
supermarkets. Coles is defending the proceeding. As
the court proceeding is at an early stage, the potential
outcome and total costs associated with this matter are
uncertain as at the date of this report.
Non-IFRS information
This report contains IFRS and non-IFRS financial information.
IFRS financial information is financial information that is
presented in accordance with all relevant accounting
standards. Retail or non-IFRS financial information is
financial information that is not defined or specified under
any relevant accounting standards and may not be
directly comparable with other companies’ information.
Retail information is presented to enable an understanding
of comparable business performance by excluding the
impacts of certain items that do not impact both the
current and comparative reporting period (for example,
the impact of AASB 16 and significant items). Retail results
are also presented using a retail reporting period to ensure
the current year’s results are prepared for a period that is
comparable to the prior year’s results.
Both statutory and retail results for FY20 have been prepared
on a 52 week basis, beginning on 1 July 2019 and ending on
28 June 2020. FY19 statutory results reflect a 52 week and
1 day reporting period, while FY19 retail results reflect a 52
week reporting period.
The table below provides further details relating to the
statutory and retail reporting periods:

STATUTORY (IFRS) RETAIL (NON-IFRS)
FY20 FY19 FY20 FY19
Reporting
period 1 Jul –
28 Jun 1 Jul –
30 Jun 1 Jul –
28 Jun 25 Jun –
23 Jun
Number
of days 364 days 365 days 364 days 364 days
Number
of weeks 52 weeks 52 weeks
1 day 52 weeks 52 weeks
Any non-IFRS financial information included in this report
has been labelled to differentiate it from statutory or IFRS
financial information. Non-IFRS measures are used by
management to assess and monitor business performance
at the Group and segment level and should be considered
in addition to, and not as a substitute for, IFRS information.
Non-IFRS information is not subject to audit or review.
Forward-looking statements
This report contains forward-looking statements in relation
to the Group, including statements regarding the Group’s
intent, belief, goals, objectives, initiatives, commitments or
current expectations with respect to the Group’s business
and operations, market conditions, results of operations
and financial conditions, and risk management practices.
Forward-looking statements can generally be identified by
the use of words such as ‘forecast’, ‘estimate’, ‘plan’, ‘will’,
‘anticipate’, ‘may’, ‘believe’, ‘should’, ‘expect’, ‘intend’,
‘outlook’, ‘guidance’ and other similar expressions.
These forward-looking statements are based on the
Group’s good-faith assumptions as to the financial, market,
risk, regulatory and other relevant environments that will
exist and affect the Group’s business and operations in the
future. The Group does not give any assurance that the
assumptions will prove to be correct. The forward-looking
statements involve known and unknown risks, uncertainties
and assumptions and other important factors, many of
which are beyond the reasonable control of the Group,
that could cause the actual results, performances or
achievements of the Group to be materially different from
future results, performances or achievements expressed or
implied by the statements.
Readers are cautioned not to place undue reliance on
forward-looking statements. Forward-looking statements
in this report speak only as at the date of issue. Except as
required by applicable laws or regulations, the Group does
not undertake any obligation to publicly update or revise
any of the forward-looking statements or to advise of any
change in assumptions on which any such statement is
based. Past performance cannot be relied on as a guide
to future performance.
Earnings per share and dividends
Earnings per share (EPS) decreased to 73.3 cents, a 9.3%
decrease from the prior year.

FY20 FY19
Profit for the period from
continuing operations ($M) 978 1,078
Weighted average number of
ordinary shares for basic and
diluted EPS (shares, million) 1,334 1,334
Basic and diluted EPS (cents) 73.3 80.8
Basic and diluted EPS, excluding
significant items (cents) 70.1 67.5
The Board has determined a fully franked final dividend of
27.5 cents per share (cps).

CPS FRANKED
AMOUNT
PER SECURITY
FY20
Interim dividend 30.0 cents 30.0 cents
Final dividend 27.5 cents 27.5 cents
FY19
Interim dividend nil nil
Final dividend 24.0 cents 24.0 cents
Special dividend 11.5 cents 11.5 cents
Total dividend 35.5 cents 35.5 cents
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Balance sheet
A summary of key balance sheet accounts for the Group:

$M 28 JUNE
2020 30 JUNE
2019 CHANGE
Assets
Cash and cash equivalents 992 940 5.5%
Trade and other receivables 434 360 20.6%
Inventories 2,166 1,965 10.2%
Property, plant and equipment 4,127 4,119 0.2%
Right-of-use assets 7,660 – n/m1
Intangible assets 1,597 1,541 3.6%
Deferred tax assets 849 365 132.6%
Other 524 487 7.6%
Total assets 18,349 9,777 87.7%
Liabilities
Trade and other payables 3,737 3,380 10.6%
Provisions 1,333 1,341 (0.6%)
Interest-bearing liabilities 1,354 1,460 (7.3%)
Lease liabilities 9,083 – n/m1
Other 227 239 (5.0%)
Total liabilities 15,734 6,420 145.1%
Net assets 2,615 3,357 (22.1%)
1 n/m denotes not meaningful.
Coles opened its new Coles supermarket and Liquorland store at Ormeau Village in July 2019. The supermarket is part of an investment of more than $120 million by
Coles across the Gold Coast since 2016, including new and refurbished supermarkets at Ormeau Village, Australia Fair, Mudgeeraba, Southport Park, Coomera City
Centre, Coomera Westfield, Pimpama and Palm Beach.
Coles Group Limited 2020 Annual Report
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Cash and cash equivalents increased to $992 million largely
driven by increased trading activity in the last week of the
financial year and the timing of trade payables settlements
relative to the same time last year.
The uplift in Trade and other receivables to $434 million
reflects increased supplier and other trading related
balances owing to the Group from higher sales, particularly
in the final quarter of the year.
Inventories increased to $2,166 million primarily in response
to increased trading activity across Supermarkets and
Liquor. A legislative change relating to the recognition of
duties and taxes on tobacco stock has also contributed to
the increase in inventories during the year.
The application of AASB 16 from 1 July 2019 resulted in a
significant increase in Deferred tax assets to $849 million
attributable to the deferred tax impact associated with the
implementation of AASB 16 during the year (refer to Impact
of AASB 16 Leases).
The increase in Other assets to $524 million is predominantly
attributable to an increase in income tax receivable. The
movement in this balance reflects a timing difference in the
settlement of tax balances driven by the Group’s exit from
the Wesfarmers tax consolidated group in the prior year.
Trade and other payables increased to $3,737 million, largely
driven by elevated inventory holdings to support COVID-19
related demand towards the end of the year.
Other liabilities have reduced to $227 million, with the net
movement reflecting an uplift in gift card liabilities from
lower redemptions offset by a reduction in lease related
obligations which have been reclassified to lease liabilities
as part of the transition to AASB 16.
Capital management
Interest-bearing liabilities reflect external borrowings and
debt capital funding commitments. During the year, Coles
issued $600 million of fixed rate Australian dollar medium
term notes (Notes), comprising $300 million of seven-year
Notes and $300 million of 10-year Notes. The proceeds from
these issuances, along with surplus cash, was used to pay
down term debt.
As at 28 June 2020, Coles’ average debt maturity was 5.6
years, with undrawn facilities of $2,182 million. Borrowing
costs for the year were $32 million and averaged
approximately 2.13% per annum. Coles is committed to
diversifying funding sources and extending its debt maturity
profile over time.
The lease-adjusted leverage ratio at the reporting date
was 3.1x with current published credit ratings of BBB+ with
Standard & Poor’s and Baa1 with Moody’s.
Impact of AASB 16 Leases
The application of AASB 16 impacted the following items in
the Balance Sheet on 1 July 2019:
• recognition of right-of-use assets: $7,481 million
• recognition of lease liabilities: $8,856 million
• increase in deferred tax assets: $356 million
• elimination of lease related provisions recognised under
previous lease accounting: $188 million
The net impact to retained earnings on 1 July 2019 was a
decrease of $831 million.
Set out below are the carrying amounts of recognised right-of-use assets and movements during the period:

PROPERTY
LEASES
$M NON
PROPERTY
LEASES
$M TOTAL
$M
As at 1 July 2019 7,339 142 7,481
Additions1 1,024 16 1,040
Depreciation expense (822) (39) (861)
At 28 June 2020 7,541 119 7,660
Set out below are the carrying amounts of recognised lease liabilities and movements during the period:

$M
As at 1 July 2019 8,856
Additions1 1,073
Accretion of interest 399
Payments (1,245)
At 28 June 2020 9,083
1 Includes reasonably certain options, remeasurements and new leases, net of leases terminated.
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Cash flow
Summary cash flows of the Group

$M FY20 FY19 CHANGE
Cash flows from operating activities
Receipts from customers 39,971 41,126 (2.8%)
Receipt from Viva Energy – 137 n/m1
Payments to suppliers and employees (36,486) (38,665) (5.6%)
Interest paid (37) (33) 12.1%
Interest component of lease payments (399) – n/m1
Interest received 7 4 75.0%
Income tax paid (504) (294) 71.4%
Net cash flows from operating activities 2,552 2,275 12.2%
Net cash flows used in investing activities (658) (280) 135.0%
Net cash flows used in financing activities (1,842) (1,611) 14.3%
Net increase in cash and cash equivalents 52 384 (86.5%)
1 n/m denotes not meaningful.
The application of AASB 16 has necessitated the
reclassification of lease related payments in the cash
flow statement during FY20. Specifically, operating lease

expenses which were included in payments to suppliers
and employers in the prior year, have been reclassified
between interest paid and financing costs. The impact of
this is a reclassification of net cash outflows from operating
activities to financing activities to align with the accounting
requirements of the new standard. As FY19 balances have
not been restated, this reduces comparability against the
prior year. property sales during the year. Included in FY19 net cash flows
were proceeds associated with the sale of Spirit Hotels and the
disposal of Kmart, Target and Officeworks (KTO) to Wesfarmers
as part of Coles’ demerger from Wesfarmers Limited.
Net cash flows from operating activities increased to
$2,552 million. The increase reflects the uplift associated
with the net reclassification of lease related payments
to cash flows from financing activities, partially offset
by an increase in cash tax paid. In FY19, Coles exited the
Net cash flows used in financing activities increased to
$1,842 million reflecting the net repayment of external
borrowings during the year, the principal component of
lease payments and dividends paid to shareholders. FY19
cash flows also reflected the net settlement of capital and
funding balances with Wesfarmers as part of the demerger.
Wesfarmers tax consolidated group which brought forward
the settling of all tax related balances resulting in a lower
net tax cash outflow in the prior year. The movement
in operating cash flows for the year also reflects a net
reduction in Express associated with the transition to a
commission agent arrangement under the terms of the
New Alliance Agreement.
Net cash flows used in investing activities increased to
$658 million reflecting investment in the Group’s annual
capital program, partly offset by the proceeds from

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Segment overview
$M FY20 FY19 CHANGE
Sales revenue 32,993 30,993 6.5%
EBIT 1,618 1,191 35.9%
EBIT margin (%)1 4.9 3.8 106bps
Retail (non-IFRS)2
$M FY20 FY19 CHANGE
Sales revenue 32,993 30,890 6.8%
EBITDA 1,879 1,735 8.3%
EBIT3 1,310 1,183 10.7%
Gross margin (%) 25.1 24.8 30bps1
Cost of doing business (CODB) (%) (21.1) (20.9) (16bps) 1
EBIT margin (%)1 4.0 3.8 14bps
Operating metrics (non-IFRS) FY20
(52 WEEKS) 2H20
(25 WEEKS) 1H20
(27 WEEKS)
Comparable sales growth (%) 5.9 10.0 2.0
Customer satisfaction4 (%) 87.1 85.9 88.3
Inflation excl. tobacco and fresh (%) 1.5 2.6 0.4
Sales per square metre5 (MAT $/sqm) 17,547 17,547 16,800
1 Changes are calculated on an absolute percentage basis to more precisely reflect the movement.
2 Refer to Non-IFRS Information section for a comparison of statutory (IFRS) and retail (non-IFRS) results.
3 Retail EBIT excludes the impact of AASB 16 Leases in FY20.
4 Based on Tell Coles data. See glossary for explanation of Tell Coles.
5 Sales per square metre is on a moving annual total (MAT), or exit rate calculated on a rolling 12 months of data basis.
Supermarkets
Highlights
Statutory sales revenue increased 6.5% to $32,993 million
driven by range reviews providing a more tailored offer
for customers, trusted value campaigns to lower the cost
of breakfast, lunch and dinner, and execution of Coles’
tailored store format strategy. Collectible campaigns
including Little Shop 2 and Spiegelau glassware also
contributed to sales revenue growth during the year.
Trading increased significantly in the later stages of the third
quarter as customers began pantry stocking in advance of
COVID-19 social distancing measures being introduced. The
associated transition to in-home consumption supported
elevated trade through to the end of the year.
On a retail basis, sales increased by 6.8% to $32,993 million,
with comparable sales growth of 5.9%, the 51st consecutive
quarter of positive comparative sales growth.
Own Brand sales grew by 9.7% in FY20, achieving in excess
of $10 billion sales for the year and launching over 1,850 new
products. Range innovations, including the Coles Kitchen
and Coles Finest convenience ranges, have provided quick
and healthy meal solutions to support in-home consumption
growth. Trusted value was delivered through the ‘Helping
lower the cost of…’ campaign, increased Own Brand sales
and more than 1,500 products on everyday low prices.
Coles recorded inflation excluding tobacco and fresh
of 1.5% for the year, with total inflation of 2.4%. Total cost
inflation was largely a result of increases in tobacco due to
excise, dairy following milk cost price increases earlier in the
year and vegetables, with some lines impacted by weather
conditions such as drought, bushfires and storms. Inflation
was higher in the fourth quarter driven by cost inflation,
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lower availability and mix impacts. Reduced availability of
key lines led to lower promotional activity, with increased
at-home eating trends also driving a shift to premium

products during the quarter. Coles Online
Coles Online sales revenue grew by 18.1% to $1,301 million
Supermarkets continued to optimise the store network as
part of its tailored store format strategy with 70 renewals
completed in FY20.
Coles now has 29 Format A stores focused on convenience
and a premium fresh food offer; 33 Format C stores focused
on driving operational efficiencies; and four Coles Local
stores focused on tailored local offerings, including the
first in New South Wales at Rose Bay which opened in May.
Coles’ dedicated convenience space was also successfully
delivered to approximately 150 stores during the year.

Gross margin increased 30bps to 25.1% driven by strategic
sourcing benefits, a more efficient supply chain from the
realisation of Smarter Selling initiatives, and favourable mix
as a result of COVID-19 customer purchasing, partly offset through the expansion of contactless Click & Collect, and
unattended delivery was also introduced allowing Coles
Online to service customers more quickly.
by investment in value.

CODB as a percentage of sales increased by 16bps to 21.1%
driven by higher store expenses, including incremental
costs to support team member and customer safety during
COVID-19. Partly offsetting this increase were savings from
Smarter Selling initiatives relating to a more streamlined
Store Support Centre, enhanced end-to-end processes in
store driven by data and technology related solutions, and
energy and waste management reductions including the
replacement of fluorescent lights with more efficient, lower
maintenance LED lighting in stores.
Statutory EBIT increased by 35.9% to $1,618 million driven by
growth in sales, gross margin progression, cost management commenced on the Melbourne site.
Coles Financial Services
Through Coles Financial Services, the Group offers credit
cards and personal loans in partnership with Citigroup to
approximately 330,000 customer accounts and home,
car and landlord insurance in partnership with Insurance
Australia Group (IAG) to approximately 350,000 policy
holders. During the year, Coles launched pet insurance in
partnership with Guild Insurance.
initiatives and an uplift in EBIT from the implementation of
AASB 16 in FY20.
On a retail basis, which excludes the impacts of AASB 16,
EBIT increased by 10.7%.
in FY20, after services were temporarily disrupted in March
and April during the COVID-19 pandemic. As government
restrictions were introduced, the Coles Online Priority
Service was established to support customers most in
need, with service progressively restored for all customers
throughout April and May.
Coles Online invested heavily throughout the year in
expanding capacity of Home Delivery, largely through
extended pick-times and the recruitment of additional
drivers. Click & Collect capacity increased, predominantly
Leases were also signed during the year for the two Ocado
sites in Sydney and Melbourne, with construction having
Supermarkets
(continued)
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Above: Michael and Rob at the new Coles Local which opened in Glenferrie Road, Hawthorn during FY20, offering customers a tailored local range.
Below: Brenda has worked at Coles for more than 53 years and in June 2020 she received an Order of Australia medal for services to the Malvern community.
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Coles launched 115 new liquor products during FY20, including the Somma range of alcoholic mineral water (top left), Native Spirits range of gins (top right),
an extended range of our craft beer Tinnies (middle left) and a new Vintage Cellars wine range (middle right). Winemakers Julian Langworthy and Andrew
Bretherton from Deep Woods Estate in Western Australia’s Margaret River region with a bottle of award-winning Deep Woods Single Vintage Cabernet Malbec
which is exclusive to Coles Liquor (bottom). Julian Langworthy was named Vintage Cellars Winemaker of the Year in 2019.
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Segment overview
$M FY20 FY19 CHANGE
Sales revenue 3,308 3,205 3.2%
EBIT 138 133 3.8%
EBIT margin (%)1 4.2 4.2 2bps
Retail (non-IFRS)2
$M FY20 FY19 CHANGE
Sales revenue3 3,308 3,063 8.0%
EBITDA 149 153 (2.6%)
EBIT4 120 120 –
Gross margin (%) 21.6 22.3 (72bps) 1
Cost of doing business (CODB) (%) (17.9) (18.4) 44bps1
EBIT margin (%)1 3.6 3.9 (28bps)
Operating metrics (non-IFRS) FY20
(52 WEEKS) 2H20
(25 WEEKS) 1H20
(27 WEEKS)
Comparable sales growth (%) 7.3 13.9 1.5
Sales per square metre5 (MAT $/sqm) 15,438 15,438 14,370
1 Changes are calculated on an absolute percentage basis to more precisely reflect the movement.
2 Refer to Non-IFRS Information section for a comparison of statutory (IFRS) and retail (non-IFRS) results.
3 Retail sales revenue for FY19 excludes hotel sales.
4 Retail EBIT excludes the impact of AASB 16 Leases in FY20 and hotels in FY19.
5 Sales per square metre is a moving annual total (MAT) or exit rate calculated on a rolling 12 months of data basis.
Highlights
Liquor sales revenue was $3,308 million on a statutory basis,
an increase of 3.2% from the prior year.
On a retail basis sales revenue was $3,308 million, an increase
of 8.0% for the year with comparable sales growth of 7.3%.
The First Choice Liquor Market conversions continue to
perform strongly with the format now rolled out to 61% of
the First Choice network. ELB sales grew by 7.5% for the year,
with 74 new ELB lines launched in FY20.
Liquor experienced a trading uplift driven by COVID-19
in the latter part of the year from increased in-home
consumption following government-imposed restrictions on
hotels, pubs, clubs and licensed venue operators. A plan
to simplify and refocus the Liquor operating model was
accelerated by COVID-19, providing an opportunity to fasttrack clearance activity for slow moving and deleted stock.
The closure of on-premise venues as a result of COVID-19
also provided the opportunity to support and engage
with local suppliers, with over 300 new ‘local’ product lines
launched during the fourth quarter.
Targeted investment in online platforms, capacity and
customer experience across all three banners supported
strong online sales growth of 40% for the year. For the fourth
quarter, online sales increased in excess of 70% driven, in
part, by changing customer preferences towards online
shopping alternatives during COVID-19.
Optimisation of the store network continued with 20 new
stores opened and 20 stores closed, resulting in a total of
910 Liquor stores at the end of the year.
Gross margin decreased by 72bps to 21.6% from customers
moving towards more value-oriented products and
ongoing clearance and promotional activities associated
with tailored range reviews.
Statutory EBIT increased by 3.8% to $138 million driven by
increased sales and the implementation of AASB 16 in
FY20, partly offset by margin deterioration and incremental
operating costs associated with COVID-19.
On a retail basis, which excludes the impacts of AASB 16,
EBIT was flat for the year.
Liquor
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Segment overview
$M FY20 FY19 CHANGE
Sales revenue 1,107 3,978 (72.2%)
EBIT 33 46 (28.3%)
EBIT margin (%)1 3.0 1.2 180bps
Retail (non-IFRS)2
$M FY20 FY19 CHANGE
Sales revenue3 1,107 1,048 5.6%
EBITDA 12 76 (84.2%)
EBIT4 (16) 50 (132.0%)
Gross margin (%) 53.7 61.4 n/m5
Cost of doing business (CODB) (%) (55.2) (56.7) 153bps1
EBIT margin (%)1 (1.5) 4.7 n/m5
Operating metrics (non-IFRS) FY20
(52 WEEKS) 2H20
(25 WEEKS) 1H20
(27 WEEKS)
Comparable convenience store (c-store) sales growth (%) 4.6 6.4 2.9
Weekly fuel volumes (million litres) 59.5 54.2 64.4
Fuel volume growth (%) (2.3) (9.0) 3.3
Comparable fuel volume growth (%) (2.5) (9.9) 4.2
1 Changes are calculated on an absolute number / percentage basis to
more precisely reflect the movement.
2 Refer to Non-IFRS Information section for a comparison of statutory (IFRS)
and retail (non-IFRS) results.
3 Retail sales revenue for FY19 excludes fuel sales.
4 Retail EBIT excludes the impact of AASB 16 Leases in FY20.
5 n/m denotes not meaningful.
Highlights
Statutory sales revenue for Express decreased by 72.2% to
$1,107 million driven by lower fuel volumes and the move to a
commission agent model under the New Alliance Agreement
effective 1 March 2019. In accordance with the terms of the
New Alliance Agreement, Express no longer recognises fuel
sales revenue; however, it is entitled to commission income
(recognised in ‘other operating revenue’) from fuel sold at
Alliance sites.
On a retail basis, sales revenue increased by 5.6% to $1,107
million largely driven by COVID-19 related pantry stocking
and strong basket size growth in the latter part of the year
which more than offset lower foot traffic in-store following
government stay-at-home directives across the country.
Express continued to invest in the customer offer in FY20,
completing the implementation of fast-lane fridges and
commencing a network wide roll out of new self-service
coffee machines in the fourth quarter. During the year, seven
new sites were opened and eight sites closed, taking the total
network to 713 sites.
Weekly fuel volumes averaged 59.5 million litres in FY20, a
decline of 2.3% for the year. Prior to COVID-19, fuel volumes
were trending positively compared to the prior year, peaking
at approximately 70 million litres per week during the third
quarter. Average weekly fuel volumes declined significantly in
the early part of the fourth quarter, with less road traffic due to
government stay-at-home directives. The trajectory improved
throughout the fourth quarter as restrictions began to ease in
parts of the country.
CODB as a percentage of sales decreased by 153bps to 55.2%
reflecting cost control and efficiency measures throughout
the year.
Statutory EBIT decreased by 28.3% to $33 million for the year
driven by the decline in fuel volumes and c-store margin, partly
offset by an EBIT uplift from the implementation of AASB 16.
On a retail basis, Express recorded an EBIT loss of $16 million
for the year driven by the decline in fuel volumes and, in part,
c-store margin deterioration as customers shifted towards
top-up and non-food categories in the latter part of the year.
Retail results exclude the impacts of AASB 16 and fuel sales.
Express
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Other Other includes corporate costs, Coles’ 50% share of flybuys
net profit, the net gain generated by the Group’s property
portfolio and self-insurance provisions. In aggregate,
this resulted in a $27 million net loss for the year driven by
corporate costs, partly offset by earnings from propertyrelated activities.
Coles’ share of net loss for its 50% equity interest in flybuys
was $6 million in FY20 (FY19: $5 million net profit).
Glossary of terms
Average basket size: A measure of how much each
customer spends on average per transaction
bps: Basis points. One basis point is equivalent to 0.01%
Cash realisation: Calculated as operating cash flow
excluding interest and tax, divided by EBITDA (excluding
significant items)
CODB: Costs of doing business. These are expenses which
relate to the operation of the business below gross profit
and above EBIT
Comparable sales: A measure which excludes stores that
have been opened or closed in the last 12 months and
excludes demonstrable impact on existing stores from
store disruption as a result of store refurbishment or new
store openings
EBIT: Earnings before interest and tax
EBITDA: Earnings before interest, tax, depreciation and
amortisation
EPS: Earnings per share
Gross margin: The residual income remaining after
deducting cost of goods sold, total loss and logistics from
sales, divided by sales revenue
IFRS: International Financial Reporting Standards
Leverage ratio: Gross debt less cash at bank and on
deposit, divided by EBITDA
MAT: Moving Annual Total. Sales per square metre is
calculated as sales divided by net selling area. Both sales
and net selling area are based on a MAT, or exit rate
calculated on a rolling 12 months of data basis
Retail calendar: A reporting calendar based on a defined
number of weeks, with the annual reporting period
ending on the last Sunday in June
Significant items: Large gains, losses, income, expenditure
or events that are not in the ordinary course of business.
They typically arise from events that are not considered
part of the core operations of the business
Tell Coles: A post-shop customer satisfaction survey
completed by over two million customers annually,
through which Coles monitors customer satisfaction with
service, product availability, quality and price
TRIFR: Total Recordable Injury Frequency Rate. The
number of lost time injuries, medically treated injuries
and restricted duties injuries per million hours worked,
calculated on a rolling 12-month basis. TRIFR includes all
injury types including musculoskeletal injuries
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Despite the many challenges we have faced, we have strong
plans in place to continue to deliver on this vision and our

strategy to Inspire Customers through best value food and
drink solutions to make lives easier, deliver Smarter Selling
through efficiency and pace of change, and Win Together
with our team members, suppliers and communities. that were delayed in FY20 due to COVID-19. Technology
and automation will continue to play an important role in
improving our supply chain, and our anytime, anywhere
offering. Our partnership with Witron to construct two ambient
automated distribution centres in Queensland and New
South Wales is well underway. Construction has commenced
in Queensland and we expect construction to begin on the
Coles’ priorities for the year ahead have not changed. With
many of our customers facing tough times, value has never
been more important, and an increasingly diverse customer

base requires a tailored offer to ensure we meet their needs.
We will provide trusted value by lowering prices, supported to deliver an online fulfilment centre in Melbourne (where
construction has already begun) and Sydney, will provide
by marketing efforts to lower the cost of breakfast, lunch and
dinner. We will also accelerate Own Brand innovation across
all price tiers and deliver range reviews at pace on the back
of the successes we achieved in FY20. We also know that our
customers want convenience and are looking for healthier
food options. Coles is well positioned in these areas with our
convenience range already rolled out to approximately 150
supermarkets. Growth in online shopping is also expected to
accelerate as existing and new online customers appreciate
the convenience of anytime, anywhere shopping. Coles’
export business remains a growth opportunity. industry leading capability in online fulfilment.
During FY20, an operational review of the Liquor strategy
was completed. This is a multi-year strategy with the
objective of creating a more relevant and accessible offer
for our customers, delivered through improved service. It
will be implemented over the three horizons of ‘Simplify and
refocus’, ‘Differentiate’ and ‘Grow’.
Having made a strong start to the Smarter Selling program in
FY20, Coles retains its $1 billion cost-out target to be achieved
between FY20 and FY23. In FY21, Coles will continue to focus
on realising cost-out opportunities, however the timing will
be dictated, in part, by COVID-19. Coles’ optimised store
network and formats are already transforming the make
up and performance of our extensive store network with While COVID-19 continues to have an impact on our team
members, suppliers and the communities we serve, and the
environment in which we operate remains highly uncertain,
Coles is well placed to take advantage of opportunities as
they arise.
Supporting our team members, suppliers and the
communities in which we operate has never been more
important than it is today. In the year ahead, we will continue
to embed wellbeing and safety in Coles’ DNA by continuing
to focus on reducing TRIFR and building the capabilities of
all team members to look after their mental wellbeing and
to create a mentally healthy workplace.
Coles has continued to experience elevated sales and incur
incremental COVID-19 costs in the early part of FY21. There
is significant variation between states, and store locations
within states, as a result of the ongoing impact of COVID-19
restrictions around Australia. The extent and duration of
these impacts will depend upon a number of factors as we
proactively manage the unfolding COVID-19 situation.
plans to renew approximately 65 stores in FY21, and to open
approximately 15 to 20 new stores, including five stores
New South Wales site in FY21. Our partnership with Ocado
Looking to
the future
Over the past year, Coles has made good progress on
delivering on our vision to ‘Become the most trusted retailer
in Australia and grow long-term shareholder value’.
To provide customers with fast, convenient service, Coles expanded its
Click & Collect Concierge offer. Northlakes Coles Online Team Manager
Jai delivers groceries for Leah and her son, William, in Darwin.
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During the year, Coles has continued to identify and manage
risks in accordance with the Coles Risk Management
Framework. The design of this Framework is based on ISO
31000:2018 Risk management – Guidelines (‘ISO 31000’),
which provides an internationally recognised set of
principles and guidelines for managing risks in organisations.
Further information about our Risk Management Framework
is available in Coles’ Corporate Governance Statement.
Through application of the Coles Risk Management
Framework, we have identified material strategic,
operational, and financial risks which could adversely affect
the achievement of our future financial prospects. Each of
these material risks is described below along with our plans
to manage them. Although the risks have been described
individually, there is a high level of interdependency
between them, such that an increased exposure for one
material risk can drive elevated levels of exposure in other
areas of our risk profile. In addition to these material risks,
our performance may also be impacted by risks that apply
generally to Australian businesses and the retail industry, as
well as by the emergence of new material risks not reported
below.
COVID-19
There are high levels of uncertainty with regard to how the
COVID-19 pandemic will evolve both internationally and
domestically, along with corresponding responses from
governments, organisations, customers and the broader
community. This makes the impact of the COVID-19
pandemic for Coles, its business and its customers highly
uncertain. Key areas of uncertainty include, but are
not limited to: evolution of the virus, rates of infection,
government regulatory and policy response (including
government-imposed shutdowns of sectors of the economy,
border closures, and variations in restrictions between states
and countries), resilience of both domestic and international
supply chains, the treatment and immunisation timeline,
and quality of available healthcare.
The emergence of the COVID-19 pandemic has created its
own set of significant risks and impacts to Coles, and has
also heightened Coles’ existing material risk profile. The
table below summarises the most significant risks associated
with COVID-19, and how these link to the broader set of
material risks.
Risk management
In response to the COVID-19 pandemic, we implemented a large number of
measures to keep our customers and team members safe, such as sneeze
guards in supermarkets.
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Risk Description Relevant existing material risk(s)
Operational disruption
Risk of significant and/or prolonged disruptions in the supply chain,
store and online operations which can impact on our ability to serve
our customers and the community. This can be driven by government
imposed restrictions including border closures, industrial relations disputes,
surges in customer demand, inability to access critical third parties whom
we rely on to deliver our strategy and operations, and loss of critical digital
applications and platforms due to cyber attacks. • Pandemic
• Competition, changing consumer
behaviour and digital disruption
• Security of supply
• Industrial relations
• Third party management
• Technology, resilience, data and
cyber security
Customer behaviour
Failure to adequately respond to changes in customer expectations as
a result of COVID-19 including increased focus on safety measures and
increased reliance and demand on online shopping and digital channels.
Any future government changes in restrictions may also lead to further
surges in customer purchases of fresh food, homecare, grocery and
pantry items, or declines in fuel volumes. • Pandemic
• Competition, changing consumer
behaviour and digital disruption
• Strategy and transformation delivery
• Security of supply
Program execution
Pauses or delays in the execution of areas within our strategy and
transformation program due to disruptions brought about by the COVID-19
pandemic. These include re-allocation of program resources to focus on
response activities, disruptions in supply of capital inputs and services,
and to critical third parties whom we rely on to deliver our strategic and
transformational programs of work. • Pandemic
• Security of supply
• Strategy and transformation delivery
• Third party management
Health and safety
Adverse impacts to team member health and wellbeing (including mental
health), the potential for clusters of COVID-19 infections at sites, and loss of
key personnel due to infection. • Pandemic
• Health and safety
Regulatory changes
Failure to appropriately respond to enhanced and rapidly moving regulatory
requirements brought on by COVID-19, including for health and safety. • Pandemic
• Health and safety
• Legal and regulatory
Cyber threats
Heightened cyber security threats including remote access scams
targeting team members working from home, payments fraud and
business email compromise, phishing scams, and abuse of video
conferencing applications. • Pandemic
• Technology, resilience, data and
cyber security
Financial costs and losses
Risk of higher input costs, additional operational costs associated with
responding to the COVID-19 pandemic, reduction in sales and margins,
increased risk of fraud, and working capital implications. • Pandemic
• Financial, treasury and insurance
COVID-19 has also adversely impacted the local and global economy but the severity, duration and extent of impact
in each affected jurisdiction is uncertain. We anticipate that the evolving nature of the COVID-19 pandemic and the
changing geopolitical and macro-economic environment (including impacts to population growth within Australia), will
drive continual changes to Coles’ material and emerging risks during the next financial year. We will therefore continue to
monitor and respond to further developments as required.
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Existing material strategic, operational and financial risks for Coles are set out below.

Strategic risks
Risk Description Mitigations
Pandemic
If Coles does not monitor and respond
to the evolution of the COVID-19
pandemic, or that of any future
pandemic, then it can expose us
to material financial loss, legal and
regulatory action, people, health
and safety issues, operational risks,
environmental and sustainability risks
and/or reputational damage. Coles continues to manage the evolution of the COVID-19 pandemic in
accordance with our Coles Group Response Policy and Program which sets
out the governance arrangements, accountabilities, and processes for crisis
management and business continuity, and our Coles SafetyCARE System
which is the safety management system that provides a framework for Coles to
look after the health, safety and wellbeing of our team members, customers,
contractors, suppliers and visitors.
Our response is led by our Executive-level Response Leaders who are
supported by the Group Response Manager. Business continuity functional
leads are assigned to manage dedicated streams of work to identify, prepare
and respond to emerging risks and issues across the Group. Critical response
decisions are discussed and approved by Coles’ Executive Leadership Team
and elevated to the Board, where required.
Business continuity plans are in place for critical functions and activities
across our operations including merchandising, supply chain and store and
online operations. Our plans include consideration of people, resources,
physical sites, information technology and digital requirements, and critical
third parties required to continue to operate and serve our customers and
community. These plans have been invoked when required during our
response and continue to be refined given the evolving nature of, and our
continued exposure to, the pandemic.
This includes ongoing assessment of risks, contingency plans and resourcing
arrangements.
Macro-economic environment
A downturn in the local and global
economy, slump in consumer
confidence, and financial market
volatility may expose Coles to higher
input costs, supply chain disruptions,
credit risk, financial loss, and restricted
access to liquidity. Assumptions about macro-economic conditions and monitoring of macro
economic factors are built into the development of our strategic programs of
work, and our forward-looking business planning.
We continue to adapt our offer so it is consistent with customer needs and
execute our Smarter Selling program with the objective of reducing costs.
We also continuously monitor progress of execution against our strategy and
transformational programs of work.
We have a Board approved Treasury Policy which governs the management
of our treasury risks, including liquidity, funding, interest rates, foreign currency,
the use of derivatives and counterparty risk. These risks are managed day-to
day by our Group Treasury function.
Competition, changing consumer behaviour and digital disruption
If Coles fails to respond to competitive
pressures and changing customer
behaviours and expectations, it could
result in loss of market share and,
ultimately, adverse margin impacts,
reduced customer retention and
impact to share price or value. Key programs to respond to these risks and build on opportunities are
embedded in the implementation of our strategy. Coles regularly monitors
customer sentiment, best practice global retailers, local and international
learnings, and customer insights and research, so we can quickly respond to
changes in customer behaviours.
In response to COVID-19 we launched initiatives which were focused on
delivering our products and services safely to our customers. This included a
shifting focus to contactless Home Delivery and Click & Collect, Community
Hour for vulnerable and elderly customers, emergency services and health
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Competition, changing consumer behaviour and digital disruption (continued)
care workers, and delivery of the ‘speedy shopper’ initiative including use of
the Coles Product Finder App to help customers plan their shop ahead of time.
We continue to focus on driving an enhanced digital customer experience
through our digital catalogue and the new coles.com.au platform and have
invested in new data analytics tools and platforms to give suppliers and
category decision makers fast and detailed insights across products, stores,
geographies and sales channels.
Strategy and transformation delivery
Inability to properly execute
and deliver our strategy and
transformational program could
result in loss of market share, and
variability in Coles’ earnings. Delivery of our strategy and transformation program is determined by the
effective implementation of each of the three pillars of our strategy.
Furthermore, elements of our strategy are supported by third-party strategic
partnerships including Witron (automated distribution centres), Ocado
(enhanced online capability) and Microsoft (cloud data platform, and
enterprise resource planning platform for selected business units).
We also have joint ventures with Wesfarmers (flybuys) and AVC (QVC), and an
alliance with Viva (Coles Express). During the financial year, Coles acquired
certain assets and liabilities of Jewel, an Australian ready-meals facility. In
addition, Coles may undertake future acquisitions and divestments, and enter
into other third-party relationships, so we can more effectively execute our
strategy.
We have governance structures and processes in place to oversee, manage
and execute our strategy and transformational programs of work. Projects
and programs are regularly reviewed in detail to monitor progress of program
delivery, costs and benefits, and allocation of resources. We have maintained
progress in the execution of our programs with Witron and Ocado during the
COVID-19 pandemic, though our joint venture with AVC and Viva Alliance
have been adversely impacted, with the temporary closure of hotel venues
(which does not have any direct economic impact on Coles) and reduced
fuel volumes.
Climate change
Climate change presents an evolving
set of risks and opportunities for Coles,
and has the potential to contribute
to and increase the exposure of
other material risks. These include
increased frequency/intensity of
extreme weather events and chronic
climate changes which can disrupt
our operations and compromise
the safety of our team members,
customers, supply chain and the
food we sell; changes to government
policy, law and regulation, which can
result in increased costs to operate
and potential for litigation; and failure
to meet expectations of stakeholders
resulting in reputational damage. Coles has undertaken a gap analysis against the G20’s Financial Stability Board
Task Force on Climate-related Financial Disclosures (TCFD) to understand and
improve its alignment to the TCFD recommended disclosures. A roadmap
has been developed and action commenced to improve Coles’ response to
climate change and its transition to a lower carbon economy.
During FY20, we worked with external climate change specialists to further
assess our climate change risks and opportunities. Additional information on
these risks and opportunities is set out in the Climate Change section.
Further, in the case of extreme weather events, we have business continuity
processes for sourcing and delivering goods to stores. To reduce our impact on
the environment, we have an Energy Strategy that includes our approach to
energy purchasing, monitoring and management. Through the Coles Nurture
Fund, we are supporting suppliers with grants to help them adapt to climate
change as well as to mitigate their impact.
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Operational risks
Risk Description Mitigations
Industrial relations
As we execute our strategy, workforce
changes may lead to industrial action
and/or disruptions to operations,
which can result in increased costs,
litigation and financial impacts
from reputational damage. The
emergence of COVID-19 along with
planned changes in our supply chain
operations, has heightened our
exposure to this risk. Coles has in place a dedicated Employee Relations function which is
responsible for monitoring and responding to industrial relations risks and issues.
Key activities include implementation of appropriate enterprise bargaining
and employee relations strategies; maintaining and building strong working
relationships with unions and industry organisations; and constructively liaising
with our team members, third-party suppliers and transport and logistic
service providers.
The renegotiation of collective bargaining agreements is proactively
managed and business continuity plans are in place to mitigate disruption to
operations if industrial action occurs.
Security of supply
Potential disruption to the supply
of goods for resale and services
required to deliver our core
operations can occur due to extreme
weather events and changes in
climate, changes in domestic and
international government policy and
regulation, and disruptions caused
by the evolving COVID-19 pandemic,
including suspension of production,
domestic and international border
closures, and restricted access to
the workforce our suppliers rely on
to produce goods. Supply chain
disruptions can result in an inability
to supply to customers, loss of market
share, price volatility and increased
costs. We have business continuity plans to manage the supply chain and delivery
of goods to stores during extreme weather and business disruptive events.
These continuity plans were successfully invoked in response to the bushfires
and demand surges experienced during the early stages of Coles’ COVID-19
response. Our COVID-19 response includes sourcing alternative supply
arrangements, scaling up production and distribution of substitute goods
(potentially simplifying range to aid production efficiency), and removal of
promotions to suppress demand of impacted lines and customer limits.
We continue to analyse Coles’ supply chain resilience across a number of key
food categories, including for carbon footprint and water scarcity. The results
will be used to contain possible future disruptions to supply. Medium and
longer term international and domestic supply security risks and mitigations
continue to be assessed as the external environment evolves.
Health and safety
The safety of our team, customers,
third parties and contractors is
paramount to Coles. We employ an
extensive and diverse work force,
including third parties, with high
volumes of people interactions
daily. This brings risk of fatality, life
threatening injuries or transmission of
disease to team members, customers,
suppliers, contractors or visitors, due
to unsafe work practices, accidents or
incidents. Our detailed Health, Safety, Environment and Injury Management system
(SafetyCARE) is supported by a team of experienced safety professionals
throughout our network. SafetyCARE’s performance is measured through a
range of indicators and the effectiveness of the system is assessed through a
verification program. A rolling five-year Safety and Wellbeing Plan focuses on
the three pillars of Safety leadership and culture, Critical risk reduction, and
Mind your health.
The health and safety of our customers and team members is the focal point
of our response to the COVID-19 pandemic. Coles adheres to the hygiene
practices recommended by the Australian Government through Safe Work
Australia and based on information from the World Health Organization,
the Australian Department of Health, state and territory governments and
departments of health and other applicable regulatory bodies. A large
number of measures have been implemented including programs to keep our
customers and team members safe incorporating social distancing measures,
sneeze guards, sanitiser, masks, additional cleaning and security, immediate
escalation and reporting protocols, and the implementation of large-scale
mental health and wellbeing programs for all of our team members.
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Product and food safety
Product and food safety and quality is
critical for Coles. Serious illness, injury
or death are the most severe potential
consequences from compromised
product or food safety. Loss in
customer trust, reputational damage,
loss in sales and market share,
regulatory exposure, and potential
litigation could also occur. Coles has a food safety governance program in place which is overseen by an
experienced technical team. The program comprises targeted policies and
procedures, including well established food recall and withdrawal processes,
specific supplier requirements for different food categories (for example
chilled versus ambient) and a supporting assurance program to ensure key
controls are operating and effective.
We also have a Product Safety Program which covers non-food products, and
work closely with our suppliers to ensure compliance with relevant mandatory
standards to meet consumer guarantees under the Australian Consumer Law.
Our Product and Food Safety Committee oversees continuous improvement of
food and product safety risks and issues across Coles, including any presented
by COVID-19.
Food and plastic waste
We recognise that food and plastic
waste negatively impacts the
environment, economy and society.
There is a potential for significant
reputational risk if Coles does not
reduce food and plastic waste in
line with consumer, shareholder and
government expectations. Coles is committed to working with the Australian Packaging Covenant
Organisation. We have a waste management strategy in place which includes
programs to divert waste from landfill, including partnerships with SecondBite,
Foodbank and local farmers. In-store training and awareness programs are in
place to increase the effectiveness of our waste management program. Soft
plastics recycling through REDcycle is available in our supermarkets and the
volumes of material submitted for recycling continue to increase.
We continue to look for new opportunities to reduce waste, including working
with our suppliers, partnering with our communities to use food we do not sell,
and trialling new solutions to better process our in-store waste.
Third party management
An inability to successfully manage
and leverage our strategic third-party
relationships, or a critical failure of
a key supplier or service provider,
may expose Coles to risks related to
compromised safety and quality,
misalignment with ethical and
sustainability objectives, disruptions
to supply or operations, unrealised
benefits, and legal and regulatory
exposure. Coles has due diligence processes in place to assess the adequacy and
suitability of key suppliers, service providers and strategic partners in
accordance with our requirements. We monitor and manage quality and
performance of key suppliers and strategic third parties throughout their
engagement with Coles. Defined service level and key performance indicators
are in place for key supply contracts. Risks are managed via contractual
protections.
During FY20, we delivered the source to pay process for goods and service
providers (goods not for resale) via implementation of the SAP Ariba
technology platform. Third party management (goods not for resale) is
governed by the Third Party Management Policy and includes risk assessment
requirements for the sourcing process. Plans for FY21 include the continued
uplift and embedding of contract management and supplier management
requirements for goods not for resale engagements.
Legal and regulatory
The diversity of our operations
necessitates compliance with
extensive legislative requirements at
all levels of government, including
corporations law, competition and
consumer law, health and safety,
employee relations, product and food
safety, environment, council by-laws,
privacy and bio-security. Coles has in place a Compliance Framework, which is based on AS ISO
19600:2015 Compliance Management Systems – Guidelines, and which sets
out the standards, requirements and accountability for managing regulatory
compliance obligations across the Group. Coles has targeted controls in
place across the various areas of compliance, including policies, procedures,
training and system controls. The Framework is subject to assurance to
ensure controls are in operation and operating effectively. We also maintain
relationships with regulators and industry bodies and actively monitor new
and impending legislative and policy changes.
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Legal and regulatory (continued)
Non-compliance with key laws
and regulations, could expose
Coles to loss of license to operate,
substantial financial penalties,
reputational damage, a deterioration
in relationships with regulators, and
additional regulatory changes which
may adversely impact the execution
of our strategy and result in increased
cost to operate. Furthermore, if Coles
is a party to litigation, it can involve
reputational damage, financial costs,
and high investment of Company
resources and time. Our legal teams work in partnership with our compliance teams to monitor
and manage legal issues, matters, claims or disputes. We are supported by
pre-agreed panel arrangements with external legal firms and undertake risk
analysis on any potential litigation claims to understand loss potential.
Ethical sourcing
Failure to source product or conduct
our business in a manner that
complies with our Coles Ethical
Sourcing Policy and relevant legal
requirements across Australia and the
countries we source from, can result in
impact to worker safety, wellbeing or
living conditions, material reputational
damage, loss in consumer confidence
and market share, regulator fines
and penalties, and adverse financial
performance. Our Ethical Sourcing Policy and supplier requirements are based on
internationally recognised standards and establish the minimum standards for
all suppliers.
Coles’ Ethical Sourcing Program takes a risk-based approach which defines
the level of due diligence and monitoring that applies to suppliers based
on risk exposure and includes a requirement for ethical audits of selected
suppliers. The program covers Supermarkets Own Brand and fresh produce
suppliers. During the past financial year, we extended program coverage to
include Own Brand suppliers to Express, and began preparation to implement
the program for Own Brand suppliers to Liquor, as well as Goods Not For Resale
suppliers.
Coles’ Human Rights Steering Committee oversees ethical sourcing
governance including human rights risks, issues and improvement actions
across the business. The role of the committee extends to reviewing the
application of relevant legislative and regulatory requirements concerning
human rights, such as the reporting requirement under the Commonwealth’s
Modern Slavery Act 2018. In March 2020 the Board endorsed our Human Rights
Strategy which focuses on systems and processes to prevent, mitigate and
remedy actual or potential adverse human rights impacts.
Coles allocates dedicated resources to the delivery of our Human Rights
Strategy and Ethical Sourcing Program. This includes an in-house certified
social compliance auditor (certified by the Association of Professional Social
Compliance Auditors) to manage the ethical audit program. Coles’ whistle
blower hotline and dedicated supply chain wages and conditions hotline
enable reporting of unethical, illegal, fraudulent or undesirable conduct.
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Information technology, resilience, data and cybersecurity
A failure or disruption to our
information technology applications
and infrastructure, including a cyber
security event, could impede the
processing of customer transactions or
limit our ability to procure or distribute
stock for our stores. Furthermore,
our technology and data-rich
environment also exposes us to the
risk of unintentional or unauthorised
access to confidential, financial, or
private information, which may result
in loss in consumer confidence, loss
in market share, regulator fines and
penalties, and reputational damage. We have a rolling five-year technology strategy and continuously monitor our
technology operations. Our service management function is responsible for
responding to incidents, and we actively manage technology changes to
reduce the risk of system instability, especially during peak trading periods.
Information technology recovery plans are in place should an information
technology disruption occur.
Our privacy and digital security policies, procedures, governance forums, and
education and awareness programs help to assess and manage ongoing
data, privacy and cyber security threats. We regularly test and review our
information technology infrastructure, systems, and processes to assess
security threats and the adequacy of controls. We also benchmark security
capabilities and identify opportunities for improvement, and are committed to
the ongoing delivery of Coles’ cyber security program to continually improve
our people, process, and technology controls.
In response to COVID-19, we regularly assess new and increased cyber-crime
attack vectors, have deployed resources and invested in areas of threat which
have arisen, and continue to be vigilant as the threat evolves.
Financial risks
Risk Description Mitigations
Financial, treasury and insurance
The availability of funding and
management of capital and liquidity
are important requirements to fund
our business operations and growth.
In addition, we are exposed to
material adverse fluctuations in
interest rates, foreign exchange rates
and commodity movements which
could impact business profitability.
We may also be exposed to financial
loss from accidents, natural disasters
and other events. Our Group Treasury function is responsible for managing our cash funding
position and supporting the management of interest rate and foreign
currency risks. Our Treasury Policies are approved by the Board, and govern
the management of our financial risks, including liquidity, interest rates,
foreign currency and commodity risks and the use of other derivatives. Further
information is included in Note 4.2 Financial Risk Management of the Financial
Report.
Insurance is a tool to protect our customers, team members and the Group
against financial loss, where applicable. In some cases, we choose to
self-insure a significant proportion of the risk. This means that, in the event
of an incident, the cost is covered from internal premiums charged to the
business or the losses are absorbed. Our insurance function is responsible for
managing both self-insurance and the purchase of external insurance where
we determine this is prudent. We monitor our self-insured risks and have active
programs to help us pre-empt and mitigate losses. We engage an external
actuary to determine the self-insurance liabilities recognised in the Statement
of Financial Position.
COVID-19 has impacted Coles significantly in the second half of the financial
year and in the Operating and Financial Review we have documented the
trading and financial reporting impacts of the pandemic.
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We also prepared a detailed roadmap and action plan
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our transition to a lower-carbon economy. The roadmap,
by a Climate Change Subcommittee which oversees Coles’
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Group wide identification and response to sustainability
risks, including climate change. It is chaired by the Chief
Property and Export Officer, a member of the Executive
Leadership Team reporting to the Chief Executive Officer.
Its standing members comprise management from
functions with key sustainability responsibilities including
Risk and Compliance, Sustainability, Own Brand, Company During the reporting period we engaged an external
consultant to complete a gap analysis of Coles’ previous
reporting against the TCFD recommendations. While the
analysis found we are partially aligned with the majority
of the TCFD recommended disclosures, we are continuing
to refine and enhance our disclosures as we develop and
embed our climate change strategy.
which was endorsed by the Board, also highlights the key
milestones we need to meet to enable more comprehensive
climate change responses and disclosures.
Our first priority was the requirement for a climate change risk
assessment, noting climate risk has already been identified
as a material business risk as part of the risk identification
processes defined within Coles’ Risk Management
Framework. During the year, we worked with external climate
change specialists to further assess our climate change risks
and opportunities. The assessment considered three climate
scenarios to prompt innovative thinking, as described below
in the Risk Management section.
The next steps in developing our climate change strategy
will be assessing our corporate strategy against different
climate scenarios and releasing new greenhouse gas
emission reduction targets for our operational emissions.
The strategy will also reference and respond to the risks
already identified.
Governance climate change approach and reports to the Sustainability
Steering Committee and its Chair. The Subcommittee
is chaired by the General Manager Sustainability and
Property Services and includes senior leaders from key
functions within Coles, including Finance, Strategy, Risk
and Compliance, and Sustainability. The Subcommittee
also reviews the application of relevant legislative and
regulatory requirements concerning climate change.
Our approach to climate change governance
will continue to develop as we embed roles and
responsibilities throughout the organisation, recognising
that responsibilities for managing and mitigating climate
change risks are organisation wide.
Strategy and approach
The Board oversees the effectiveness of Coles’ environment,
sustainability and governance policies and retains ultimate
oversight of material environmental and sustainability risks
and opportunities, including those related to climate change.
During FY20, we continued to develop a comprehensive
climate change strategy in line with the recommended
TCFD disclosures.
Our approach to climate change is captured under
the Win Together pillar of our corporate strategy, which
incorporates Coles’ response to climate change risk and
opportunities, and has three key focus areas:
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As one of Australia’s largest companies, we know we have
a responsibility to minimise our environmental footprint. Our
business is also impacted by climate change, and we need
to adapt to be able to respond to extreme weather events
and maintain security of food supply to sustainably feed all
Australians. The Audit and Risk Committee assists the Board in fulfilling
its responsibilities. The Committee evaluates the adequacy
and effectiveness of Coles’ identification and management
of environmental and social sustainability risks as well as
reporting of those risks. The Committee receives reports
from management on new and emerging sources of risk
and the controls and mitigation measures management
has put in place to address these risks.
We support the TCFD, and information in this section
responds to the four thematic areas against which the TCFD
recommendations for climate-related disclosures are structured.
The Group’s Sustainability Steering Committee, a
management committee, is responsible for overseeing
Climate change
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• Sustainable communities – supporting Australian
farmers, suppliers, team members and the communities
in which we live and work
• Sustainable products – sourcing quality products in an
ethical and responsible way
• Sustainable environmental practices – minimising
environmental impacts across our operations, including
climate change impacts
Initiatives that address and support this component of our
corporate strategy include:
• Our Energy Strategy which guides our approach to
energy purchasing and management and maintaining
security of energy supply. In FY20, we were the first major
Australian retailer to commit to buying renewable energy
through a power purchase agreement. The 10-year
agreement is in place to purchase power from three solar
plants in New South Wales with the projects expected to
provide 10% of Coles’ national power needs. We expect
the solar plants will be operational in FY21.
• Our approach to refrigeration management which
includes investing in transcritical CO2 refrigerants – natural
gas compounds that have little or no impact on the ozone
layer and do not contribute to greenhouse gas emissions.
• Environmental improvements in stores by enhancing
sustainability features on the store design blueprint such
as doors on freezers, optimising lighting and installing
new gas and water meters.
• Business continuity planning for sourcing and delivering
goods to stores in the occurrence of extreme weather
events, such as floods, storms and bushfires.
• Research into supply chain resilience with the
Commonwealth Scientific and Industrial Research
Organisation (CSIRO), where we have investigated the
security of key products in our fresh food supply chain.
• Opportunities for new product development to support
customers seeking products with lower environmental
impacts. We understand that minimising environmental
impacts of food production is an important issue for
many customers, and we have responded by increasing
our range of plant-based products including introducing
Nature’s Kitchen, a range of plant-based products.
• The Coles Nurture Fund which provides support to
suppliers through grants for climate change adaptation
and mitigation initiatives.
• Participation in the Australian Beef Sustainability
Framework, an initiative of the Red Meat Advisory Council
managed by Meat and Livestock Australia. We consider
the framework the most appropriate way to address
climate and environmental issues facing the beef
industry (such as emissions reduction and deforestation)
from a national and industry-wide perspective.
We will continue to identify opportunities to mitigate risk
and respond to opportunities.
Construction has commenced on the development of a solar farm outside Junee in regional New South Wales. It is one of three solar farms from which Coles
will source 10% of its national power needs. The other two solar farms will be located outside the regional centres of Wagga Wagga and Corowa. All three solar
farms are being developed and constructed by Metka EGN Australia.
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physical risks (acute and chronic).
Risk management
Through the application of the Coles Risk Management
Framework, climate change has been identified as a
material business risk to the Group.
During FY20, we further assessed our climate change
risks and opportunities including the potential for climate
change risks to contribute to or increase other material
risks. The qualitative risk assessment applied the risk
management processes defined within Coles’ Risk
Management Framework and used the following three
climate scenarios to prompt innovative thinking:
1. stated policies – Where governments deliver on current
policies already in place which result in approximately
3.2°C warming above pre-industrial levels
2. ambitious global action – Where there is active
movement towards the goals set in the Paris Agreement
to keep ‘global average temperature to well below
2°C, or preferably to 1.5°C above pre-industrial levels’
3. runaway climate change – Where there is no limit
placed on carbon emissions and warming is set to
reach 4°C above pre-industrial levels.
The risk assessment included interviews and workshops with
stakeholders across the Group including Property, Export,
Supply Chain, Product, Own Brand, Coles Liquor, Coles
Express and Procurement.
Analysis of the risk exposure considered financial,
reputational, health and safety, legal and regulatory, and
operational consequences over the next 10 years. The
assessment also identified associated metrics and targets
used to monitor the management of risk and opportunities
and evaluated risk exposure against Coles’ climate change
risk appetite.
Our most significant climate-related risks, mitigants and
opportunities are presented in the following table, along
with our approach to managing them. The risks identified
have been grouped into the two major categories of
climate-related risks identified by the TCFD: (1) risks related
to the transition to a lower-carbon economy and (2)

Transition risks
Risk and impact Mitigants and opportunities
Reputational
We recognise our customers and community expect
strong and responsible action from Coles on climate
change. We know we have a responsibility to minimise
our impact on the environment through our operations.
Failure to take action on climate change would harm the
environment and Coles’ reputation. We have in place teams and processes to monitor,
understand and respond to the concerns and
expectations of our key stakeholders and society more
broadly. A roadmap has been developed and action has
commenced to enhance our climate change response
and transition to a lower-carbon economy.
Changing regulatory requirements
We take our regulatory obligations seriously and manage
non-compliance with regulatory requirements as a risk,
with supporting risk appetite statements set by the Board.
New and evolving climate-related regulations may
result in breaches and/or increased implementation or
operational cost to deliver compliance. Coles has a Compliance Framework based on AS
ISO 19600:2015 Compliance Management Systems –
Guidelines which sets out the standards, requirements
and accountability for managing regulatory compliance
obligations across the Group.
Carbon pricing
Changes in policy affecting the cost of carbon may result
in increased business costs including energy, transport,
water, goods, materials and services. Coles consistently looks for opportunities to improve
operational efficiency including energy efficiency.
Strategies to source energy from renewable sources
and reduce energy usage have been developed
for store operations, transport and refrigeration.
Incremental improvements are implemented through
asset replacement regimes. This is supported by internal
engineering standards which incorporate technological
advances and changing operating conditions.
Export market growth
Changing policies in existing and future markets may
impact growth due to the introduction and/or expansion
of trading taxes, barriers on high emissions and water
intensive products, and bans on non-recyclable
packaging. Growth may also be further impacted by
consumer transition to lower carbon lifestyles. Export remains an area of growth for Coles. Business
planning considers future market conditions and
consumer preferences, which are monitored routinely.
Coles mitigates exposures to macro-economic conditions
and regulatory requirements through diversification of
products and markets.
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Tom and Vickie Tyson from Lachlan Valley Grazing near Condobolin in New South Wales received a Nurture Fund grant to install solar panels to power new,
efficient irrigation equipment. The project, completed in FY20, has minimised the business’ carbon footprint, reduced its reliance on electricity and enabled the
family to produce grass-fed beef for 12 months of the year.
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Physical risks
Risk and impact Mitigants and opportunities
Health and safety
The frequency and intensity of extreme weather events,
as well as changes in weather patterns, will create more
instances in which conditions may become unsafe for our
team members, contractors and customers. The Coles Health, Safety, Environment and Injury Management
system (SafetyCARE) factors in the acute (for example
bushfires) and chronic impacts (for example heat fatigue) of
climate change. The system is integrated with emergency
management (our response to physical threats or events
as coordinated by the Health and Safety team), and Coles
Group Response Policy and Program, which sets out the
governance arrangements, accountabilities and processes
for crisis management and business continuity. Learnings from
incidents and events, and opportunities for improvement,
are identified and incorporated into our safety, emergency
management and response plans and processes.
Supply chain disruption
Our ability to move, procure and sell products and services
will be impacted by climate change both domestically
and internationally. Key impacts include decreased
agricultural productivity due to extreme temperature
shifts; droughts and other extreme weather events;
disrupted transport routes; and disrupted suppliers’
operations due to extreme weather events. We have business continuity plans to manage the supply
chain and delivery of goods to stores during extreme
weather and business disruptive events. We continue to
analyse Coles’ supply chain resilience across a number
of key food categories, including for carbon footprint and
water scarcity. The results will be used to contain possible
future disruptions to supply.
Food safety
Changes in growing and operating conditions may
affect the persistence and occurrence of pests and
diseases and, as a result, increase food safety risks during
production, handling and processing in manufacturing
plants, distribution and storage along the value chain. Coles’ Food Safety program, which includes recall and
monitoring processes, is updated to adapt to changing
conditions. The program aligns with externally accredited
programs such as Safe Quality Food (SQF) and British
Retail Consortium’s Global Standard for Food Safety. We
work with suppliers, industry and regulators to understand
and anticipate new and incremental risks.
Asset integrity and continuity of operations
Changing weather conditions will result in an increase
in physical damage to assets; access interruption;
prolonged power outages; decreased equipment
reliability and efficiencies; and essential services. Emergency response plans and business continuity
plans are in place to mitigate potential disruptions and
store design specifications consider future conditions to
improve their resilience in extreme conditions.
We also conducted an assessment with respect to potential
impacts on Coles’ financial statements which found that,
while the risks identified to date may result in financial
impacts such as increased costs and loss of income for future
financial years, none are considered to give rise to material
financial reporting impacts for the FY20 financial year.
Work will continue in FY21 to further explore opportunities
to manage the risks identified in the climate change risk
assessment referenced above and determine how these
will be addressed in our climate change strategy.
Metrics and targets
We met our 2020 greenhouse gas emissions target, which
was to reduce greenhouse gas emissions by 30% from a 2009
baseline, four years early in 2016 through a focus on reducing
emissions particularly emissions associated with refrigeration.
While our target has been met, we continue to invest in
energy efficiency and greenhouse gas reduction programs
including our energy strategy, refrigeration management
and opportunities in store.
Work is well progressed on developing new greenhouse gas
emission targets.
We measure and report on Scope 1 and Scope 2 greenhouse
gas emissions in line with the National Greenhouse and
Energy Reporting Scheme (NGERS) requirements. NGERS
requires companies to report annually each October. As
such, metrics, including greenhouse gas metrics, will be
included in our FY20 Sustainability Report.
Coles Group Limited 2020 Annual Report
65
Overview Operating and Financial Review Financial Report Shareholder information
Board
of Directors
Coles Group Limited 2020 Annual Report
66
Board of Directors:
Biographical details
James Graham AM
BE (Chem) (Hons), MBA, FIEAust EngExec, FTSE, FAICD, SF Fin
Chairman and Non-executive Director, Chairman of the
Nomination Committee and Member of the People and
Culture Committee
Age: 72
James Graham has extensive investment, corporate and
governance experience, including as a Non-executive
Director of Wesfarmers Limited for 20 years, prior to his
retirement in July 2018. James is Chairman of Gresham
Partners Limited, having founded the Gresham Partners
Group in 1985. From 2001 to 2009, he was a Director of
Rabobank Australia Limited, initially as Deputy Chairman
and then Chairman, responsible for the Bank’s operations
in Australia and New Zealand. He was also Chairman of the
Darling Harbour Authority between 1989 and 1995. James
was made a member of the Order of Australia in 2008.
Directorships of listed entities, current and recent
(last three years):
Director of Wesfarmers Limited (May 1998 to July 2018)
Steven Cain
MEng (1st)
Managing Director and CEO
Age: 55
Steven Cain has over 20 years of experience in Australian
and international retail. Steven was previously Chief
Executive Officer of Supermarkets and Convenience
at Metcash Limited. He was Chief Executive of Carlton
Communications plc, a FTSE 100 media group company,
and Operating Director and Portfolio Company Chairman
at Pacific Equity Partners, a private equity firm. He was
Group Marketing Director, Store Development Director and
Grocery Trading Director of Asda Stores Ltd (UK) during its
turnaround and has held roles at UK retail group Kingfisher
plc, and Bain & Company. Steven was previously the
Managing Director of Food, Liquor and Fuel at Coles Myer
and was an advisor to Wesfarmers Limited on its takeover of
the Coles Group in 2007.
David Cheesewright
BSc Mathematics and Sports Science (1st)
Non-executive Director, Member of the Nomination
Committee and the People and Culture Committee
Age: 58
David Cheesewright retired in early 2018 as President
and Chief Executive Officer of Walmart International,
which comprises Walmart’s operations outside the United
States, including more than 6,200 stores and over a million
associates in 27 countries. David was also responsible for
Walmart’s global sourcing operations and offices around
the world. He was previously President and CEO of Walmart
EMEA (Europe, Middle East and Africa), CEO Walmart
Canada, and COO Asda. David’s other prior roles include
a range of key positions with Mars Confectionery in the UK
across manufacturing, marketing, sales and logistics. David
is also a previous board member of Walmex (Walmart
Mexico), Chinese online grocery business Yihaodian, South
African retailer and distributor Massmart, The Retail Council
of Canada and ECR Europe and is a prior Chair of Walmart
Canada Bank and Gazeley Holdings (UK). David currently
sits on the Deans Advisory Board of the Smith Business School
and is a Non-executive Director of Rapha Racing (UK).
Jacqueline Chow
MBA, BSc (Hons), GAICD
Non-executive Director, Member of the Nomination
Committee and the Audit and Risk Committee
Age: 48
Jacqueline Chow is a Non-executive Director of nib
Holdings Limited and a Senior Advisor at McKinsey
Consulting RTS, advising clients across industrial, retail,
telecommunications, financial services and consumer
sectors on performance transformation projects. She is also
a Director of the Australia-Israel Chamber of Commerce
of New South Wales. From 2016 to June 2019, Jacqueline
was a Director of Fisher & Paykel Appliances. Jacqueline
previously held senior management positions with
Fonterra Co-operative Group, one of the world’s largest
dairy product producers and exporters, including Chief
Operating Officer, Global Consumer and Food Service.
Prior to that, she was in senior management with Campbell
Arnott’s and Kellogg Company. She was also Programme
Steering Group Director, Ministry for Primary Industries, NZ
and Deputy Chair, Global Dairy Platform Inc.
Directorships of listed entities, current and recent
(last three years):
Director of nib Holdings Limited (since April 2018)
Coles Group Limited 2020 Annual Report
67
Abi Cleland
MBA, BCom/BA
Non-executive Director, Member of the Nomination
Committee and the People and Culture Committee
Age: 46
Abi Cleland is a Director of Computershare Limited, Sydney
Airport Corporation Limited and Orora Limited. Abi is also
a Director of Swimming Australia. Abi’s previous board
appointments include Australian Independent Business
Media, Chairman of Planwise Australia and membership of
the advisory committee of Lazard PE Fund 2. From 2012 to
2017, Abi established and ran an advisory and management
business, Absolute Partners, focusing on strategy, mergers
and acquisitions and disruption. Before that, she held senior
management roles at KordaMentha’s 333, where she was
Managing Director, and at ANZ, Incitec Pivot Limited and
Amcor Limited.
Directorships of listed entities, current and recent
(last three years):
Director of Computershare Limited (since February 2018);
Director of Sydney Airport Corporation Limited (since April
2018); Director of Orora Limited (since February 2014);
Director of BWX Limited (August 2017 to December 2017)
Richard Freudenstein
LLB (Hons), BEc
Non-executive Director, Chairman of the People and
Culture Committee and Member of the Nomination
Committee
Age: 55
Richard Freudenstein is a Director of REA Group Limited
(since 2006), including as Chairman from 2007 to 2012. He is
also currently a board member of Cricket Australia, Deputy
Chancellor of the University of Sydney and a member
of the Advisory Board of start-up artificial intelligence
software company Afiniti. Richard was previously Chief
Executive Officer of Foxtel (2011 to 2016), Chief Executive
Officer of The Australian and News Digital Media at News
Ltd (2006 to 2010), and Chief Operating Officer at British
Sky Broadcasting plc (2000 to 2006). His previous board
positions include Ten Network Holdings (2015 to 2016), Foxtel
(2009 to 2011) and ESPN STAR Sports ESS (2009 to 2012).
Directorships of listed entities, current and recent
(last three years):
Director of REA Group Limited (since November 2006);
Director of Astro Malaysia Holdings Berhad (September
2016 to August 2019)
Wendy Stops
BAppSc (Information Technology), GAICD
Non-executive Director, Member of the Nomination
Committee and the Audit and Risk Committee
Age: 59
Wendy Stops is a Director of Commonwealth Bank of
Australia Limited. She is also a Director of Fitted for Work,
a Council member at the University of Melbourne, Chair
of the Advisory Board for the Melbourne Business School’s
Centre for Business Analytics and a member of the
Advisory Committee to the Digital Technology Taskforce
of the Department of Prime Minister and Cabinet. Wendy
was previously a senior management executive in the
information technology and consulting sectors, including
16 years with Accenture in various senior management
positions in Australia, Asia Pacific and globally. Her previous
board experience includes Altium Limited, Accenture
Software Solutions Australia and Diversiti. She is currently a
member of Chief Executive Women.
Directorships of listed entities, current and recent
(last three years):
Director of Commonwealth Bank of Australia Limited (since
March 2015); Director of Altium Limited (February 2018 to
November 2019)
Zlatko Todorcevski
MBA, BCom
Non-executive Director, Chairman of the Audit and Risk
Committee and Member of the Nomination Committee
Age: 52
Zlatko Todorcevski is a Director of The Star Entertainment
Group Ltd and was appointed as Chief Executive Officer
and Managing Director of Boral Limited, effective 1 July
2020. Zlatko’s previous appointments include Deputy Chair
and Director of Adelaide Brighton Ltd, having served as
Chairman from May 2018 to May 2019. Zlatko was also a
Council member of the University of Wollongong, President
of the Group of 100 and Chairman of the ASIC Accounting
and Audit Standing Committee. Zlatko’s executive career
included four years as Chief Financial Officer of Brambles
Ltd and from 2009 to 2012 as Chief Financial Officer of Oil
Search Ltd. From 1986 to 2009, he held various senior roles
at BHP, including Chief Financial Officer of Energy based in
London and Houston.
Directorships of listed entities, current and recent
(last three years):
Director of Adelaide Brighton Limited (March 2017 to June
2020); Director of Star Entertainment Group (since May
2018); Executive Director of Boral Limited since July 2020
68
Directors’
Report
Coles Group Limited 2020 Annual Report
69
The Directors present their report on the consolidated entity consisting of Coles Group Limited (‘Coles’ or ‘the Company’)
and its controlled entities at the end of, or during, the financial year ended 28 June 2020 (‘the Group’).
The information referred to below forms part of and is to be read in conjunction with this Directors’ Report:
• the Operating and Financial Review
• the Remuneration Report
• Board of Directors: Biographical Details
• Note 7.3 Auditor’s remuneration to the financial statements accompanying this report
• Note 7.6 Events after the reporting period to the financial statements accompanying this report
• the Auditor’s Independence Declaration required under section 307C of the Corporations Act 2001 (Cth).
Directors
The Directors in office during the financial year and up to the date of this report are:

NAME POSITION HELD PERIOD AS A DIRECTOR
James Graham AM Chairman and Independent,
Non-executive Director Appointed 19 November 2018
Steven Cain Managing Director and
Chief Executive Officer Appointed Chief Executive Officer
17 September 2018
Appointed Managing Director
2 November 2018
David Cheesewright Independent, Non-executive Director Appointed 19 November 2018
Jacqueline Chow Independent, Non-executive Director Appointed 19 November 2018
Abi Cleland Independent, Non-executive Director Appointed 19 November 2018
Richard Freudenstein Independent, Non-executive Director Appointed 19 November 2018
Wendy Stops Independent, Non-executive Director Appointed 19 November 2018
Zlatko Todorcevski Independent, Non-executive Director Appointed 19 November 2018
The biographical details of the current Directors set out information about the Directors’ qualifications, experience, special
responsibilities and other directorships.
Company secretary
Daniella Pereira LLB (Hons), BA
Daniella Pereira was appointed the Company Secretary of Coles Group Limited on 19 November 2018. Daniella has an
extensive career in legal, governance and company secretariat, including a 14-year career with ASX-listed industrial
chemicals company Incitec Pivot Limited. Daniella began her career as a lawyer with Ashurst (formerly Blake Dawson).
Directors’ Report
Coles Group Limited 2020 Annual Report
70
Directors’ meetings
The number of Directors’ meetings (including meetings of committees of Directors) and the number of meetings attended
by each of the current Directors of the Company during the financial year are listed below:

DIRECTOR BOARD AUDIT AND RISK
COMMITTEE PEOPLE AND CULTURE
COMMITTEE NOMINATION
COMMITTEE
Held Attended Held Attended Held Attended Held Attended
James Graham 12 12 5 5 3 3
Steven Cain 12 11*
David Cheesewright 12 12 5 4 3 3
Jacqueline Chow 12 12 5 5 3 3
Abi Cleland 12 12 5 5 3 3
Richard Freudenstein 12 12 5 5 3 3
Wendy Stops 12 11* 5 5 3 3
Zlatko Todorcevski 12 12 5 5 3 3
* Mr Cain and Ms Stops were apologies for extraordinary meetings which were convened at short notice.
Directors’ shareholdings in Coles
Details of Directors’ shareholdings in Coles as at the date of this Directors’ Report are shown in the table below. All Directors
have met the minimum shareholding requirement under the Board Charter.

DIRECTOR NUMBER OF SHARES HELD1
James Graham 500,188
Steven Cain2 50,000
David Cheesewright 20,000
Jacqueline Chow 20,000
Abi Cleland 19,816
Richard Freudenstein 19,000
Wendy Stops 20,000
Zlatko Todorcevski 19,201
1 The number of shares held refers to shares held either directly or indirectly by Directors as at 18 August 2020. Refer to the Remuneration Report tables for total
shares held by Directors and their related parties directly, indirectly or beneficially as at 28 June 2020.
2 As at 18 August 2020, Steven Cain also holds 85,057 Restricted Shares, 85,057 Performance Shares and 275,901 Performance Rights.
Principal activities
The principal activities of Coles during the financial year were providing customers with everyday products, including fresh
food, groceries, general merchandise, liquor, fuel and financial services through its store network and online platforms. No
significant changes have occurred in the nature of these activities during the financial year.
State of affairs
Cessation of Wesfarmers substantial shareholding
On 19 February 2020, Wesfarmers announced that it had sold 4.9% of the issued share capital of Coles. On 31 March 2020,
Wesfarmers announced that it had sold a further 5.2% of the issued share capital of Coles. Following the sale, Wesfarmers
retains a 4.9% interest in Coles. Coles and Wesfarmers continue to operate the flybuys joint venture, with both parties
retaining a 50.0% interest in the business.
As a result of Wesfarmers’ interest falling below 10.0%, the Relationship Deed agreed between Coles and Wesfarmers at
the time of the demerger terminated and Wesfarmers no longer has the right to nominate a director to the Coles Board.
Mr David Cheesewright who was previously nominated to the Coles Board by Wesfarmers, continues as a director on the
Coles Board. In light of Wesfarmers no longer being a substantial shareholder in Coles and Mr Cheesewright ceasing to be
a nominee to the Coles Board by Wesfarmers, the Board has concluded that Mr Cheesewright is an independent director.
Coles Group Limited 2020 Annual Report
71
Review and results of operations
A review of the operations of the Group during the financial year, the results of those operations and the Group’s financial
position are contained in the Operating and Financial Review (OFR).
Business strategies and prospects for future financial years
The OFR sets out information on the business strategies and prospects for future financial years and refers to likely
developments in Coles’ operations and the expected results of those operations in future financial years. Information in the
OFR is provided to enable shareholders to make an informed assessment about the business strategies and prospects for
future financial years of the Group. Information that could give rise to likely material detriment to the Group, for example,
information that is commercially sensitive, confidential or could give a third party a commercial advantage, has not
been included. Other than the information set out in the OFR, information about other likely developments in the Group’s
operations and the expected results of these operations in future financial years has not been included.
Events after the reporting date
On 18 August 2020, the Directors determined a final dividend of 27.5 cents per fully paid ordinary share to be paid on
29 September 2020, fully franked at the corporate tax rate of 30%. The aggregate amount of the final dividend to be paid
out of profits, but not recognised as a liability at 28 June 2020, is expected to be $367 million.
Dividends
Dividends since Coles’ last Annual Report:

TYPE CENTS PER
SHARE TOTAL
AMOUNT
$M FRANKED
PERCENTAGE DATE OF PAYMENT
Paid during the year
2019 final dividend 24.0 320 100% 26 September 2019
2019 special dividend 11.5 154 100% 26 September 2019
2020 interim dividend 30.0 399 100% 27 March 2020
To be paid after end of year
2020 final dividend 27.5 367* 100% 29 September 2020
DEALT WITH IN THE FINANCIAL REPORT AS NOTE $M
Dividends paid 3.3 873
Events after the reporting period 7.6 367*
* Estimated final dividend payable, subject to variations in the number of shares up to the record date.
Environmental regulations
The activities of the Company are subject to a range of environmental regulations under the law of the Commonwealth
of Australia and its states and territories. The Group is also subject to various state and local government food licensing
requirements, and may be subject to environmental and town planning regulations.
The Group has not incurred any significant liabilities under any environmental legislation during the financial year.
Indemnification and insurance of officers
The Company’s Constitution requires the Company to indemnify any person who is, or has been, an officer of the Company,
including the Directors, the Company Secretary and other executive officers, against the liabilities incurred while acting as
such officers to the extent permitted by law.
In accordance with the Company’s Constitution, the Company has entered into a Deed of Indemnity, Insurance and
Access with each of the Company’s Directors, Company Secretary, Chief Financial Officer and certain executives. No
Coles Group Limited 2020 Annual Report
72
Director or officer of the Company has received benefits under an indemnity from the Company during or since the end
of the financial year.
The Company has paid a premium in respect of a contract insuring current and former directors, company secretaries
and executives of the Company and its subsidiaries against liability that they may incur as an officer of the Company or
any of its subsidiaries, including liability for costs and expenses incurred by them in defending civil or criminal proceedings
involving them as such officers, with certain exceptions. It is a condition of the insurance contract that no details of the
premiums payable or the nature of the liabilities insured are disclosed.
Indemnification of Auditors
Pursuant to the terms of engagement Coles has with its auditors, Ernst & Young (EY), Coles has agreed to indemnify EY to
the extent permitted by law and professional regulations, against any losses, liabilities, costs or expenses incurred by EY
where they arise out of or occur in relation to any negligent, wrongful or wilful act or omission by Coles. No payment has
been made to EY by Coles pursuant to this indemnity, either during or since the end of the financial year.
Non-audit services and Auditor’s independence
Details of the non-audit services undertaken by, and amounts paid to EY are detailed in Note 7.3 Auditor’s remuneration
to the financial statements.
The Board is satisfied that the provision of non-audit services during the year by the Auditor is compatible with, and did not
compromise, the auditor independence requirements of the Corporations Act 2001 (Cth) for the following reasons:
• all non-audit services provided by EY were reviewed and approved to ensure they do not impact the integrity and
objectivity of the Auditor; and
• the non-audit services provided did not undermine the general principles relating to auditor independence as set out
in APES 110 Code of Ethics for Professional Accountants as they did not involve reviewing or auditing the Auditor’s own
work, acting in a management or decision making capacity of the Company, acting as an advocate of the Company
or jointly sharing risks or rewards.
A copy of the Auditor’s Independence Declaration forms part of this report.
Proceedings on behalf of Coles
No application has been made under section 237 of the Corporations Act 2001 (Cth) in respect of Coles, and there are no
proceedings that a person has brought or intervened in on behalf of Coles under that section.
Rounding
The amounts shown in this report and in the financial statements have been rounded off, except where otherwise stated,
to the nearest one million dollars, with the Company being in a class specified in the ASIC Corporations (Rounding in
Financial/Directors’ Reports) Instrument 2016/191.
Signed on behalf of the Board in accordance with a resolution of the Directors of the Company.

James Graham AM Steven Cain
Chairman
18 August 2020 Managing Director and Chief Executive Officer
18 August 2020
Coles Group Limited 2020 Annual Report
73
Overview Operating and Financial Review Directors’ Report Financial Report Shareholder information
Remuneration
Report
Coles Group Limited 2020 Annual Report
74
Letter to shareholders from the
Chair of the People and Culture Committee
Dear Shareholder,
On behalf of the Board, I am pleased to present the FY20 Remuneration Report for Coles. The Remuneration Report provides
information on the remuneration arrangements for our Key Management Personnel (KMP) which include the Managing
Director and Chief Executive Officer (Managing Director and CEO), Other Executive KMP and Non-executive Directors of
the Company.
A year of progress
Heading into FY20, Coles launched its refreshed strategy, ‘Winning in our Second Century’. The new strategy outlined
the Company’s vision to ‘become the most trusted retailer in Australia and grow long-term shareholder value’. The Coles
management team led by Managing Director and CEO, Steven Cain, has delivered against many of the commitments
made to shareholders across FY20. In addition, Coles delivered a total shareholder return (TSR) of 31.7% placing it in
the top quartile of performance across both the ASX 50 and ASX 100. It is particularly commendable that these results
were achieved amid some of the most challenging conditions in living memory, requiring the business to pivot at pace in
response to bushfires, floods and COVID-19. Some of the achievements in the first year of delivering on the new strategy
include:
Inspire Customers: Coles continued to inspire our customers in FY20 and delivered trusted value through the ‘Helping lower
the cost of…’ campaign. Although periodic disruptions to availability as a result of COVID-19 prevented the Company
from fully meeting the FY20 customer satisfaction target for STI purposes, it is notable that customer satisfaction improved
in all segments in Q4. Own Brand achieved more than $10 billion of sales, contributing 31.2% of Supermarkets sales in
Q4, increasing by 9.7% for the year as more than 1,850 products were launched. Coles also introduced a dedicated
convenience foods section across almost 150 supermarkets, with more than 240 new lines including the new Coles Kitchen
range from our recently acquired Jewel manufacturing facility in Sydney, supporting Coles’ ambition to become a
destination for convenience and health.
Smarter Selling: Cost savings in excess of $250 million were achieved through Smarter Selling initiatives. This was due
to enhanced logistics solutions for stores and distribution centres, improved labour productivity through integration of
operations and supply chain teams, and measures to reduce loss in store.
Win Together: Team member safety significantly improved across FY20 with the Total Recordable Injury Frequency Rate
improving by 18.3%. To help team members manage their own wellbeing in the face of the many challenges the year
presented, we proactively provided team members with resources to look after their mental and physical health, as well as
that of their families. This focus on team members was reflected in the increased engagement score, improving by seven
percentage points for the full year, alongside record participation. Coles continued to support our communities with the
SecondBite Winter Appeal; $5.2 million raised for FightMND; and more than $6 million contributed to rural firefighters and
bushfire relief.
Outcomes for FY20
This was the first year of operation under the new Coles remuneration framework for the Executive KMP as outlined in
the 2019 Annual Report. Under the framework each of the Executive KMP was aligned to the new short-term incentive
(STI) design structure using individual balanced scorecards consisting of financial, strategic and non-financial metrics as
outlined in section 4.4.
Remuneration
Report
Coles Group Limited 2020 Annual Report
75
Company performance was strong against all financial metrics included in the Executive KMP STI for FY20. Group sales
revenue (adjusted retail basis) increased by 6.6% to $38,109 million; and for the first time in four years, Coles reported
earnings growth at a Group level, with earnings before interest and tax (EBIT) (pre AASB 16 and significant items) increasing
by 4.7% to $1,387 million. It is important to note that revenue and earnings had both established a strongly upward trajectory
prior to the influence of COVID-19, which began to further accelerate sales growth during the third quarter. It is also
significant that the Company successfully managed the increased demand and operational challenges of COVID-19.
Performance was also strong against strategic and non-financial metrics, which broadly included people, safety, customer,
Smarter Selling and transformation projects that will underpin the long-term sustainability of our business. In evaluating the
achievement against the balanced scorecard, the Board maintains the absolute discretion to ensure that remuneration
outcomes are appropriate in the context of the Company’s performance, our customer and team member experience
and shareholder expectations. For FY20, the Board considered the STI outcomes in the context of the unprecedented
events the year presented. Section 4.4 covers the achievements in more detail and includes a summary of the Board’s
approach to determining the final STI payable for Executive KMP, considering the full year achievements in the context of
the unique circumstances of FY20. The resulting impact was STI outcomes for the Executive KMP that ranged between 91.7%
to 100% of the maximum STI opportunity. The Board believes this is a reasonable reflection of the significant achievements
delivered by management against the commitments made to shareholders for FY20. Under the remuneration framework,
50% of the Managing Director and CEO’s STI award will be deferred into equity for two years, and 25% of the Other Executive
KMP STI awards will be deferred into equity for one year.
An unprecedented time
As an essential service, Coles played a significant role in supporting the community and our own team members through
COVID-19 in FY20. The comprehensive response included a number of initiatives that contributed to the final EBIT result for
FY20:
• A safe in-store environment for team members and customers through increased cleaning throughout the store, store
signage to help customers keep a safe distance, safety screens at checkouts, and increased security where required;
• Helped the most vulnerable members of our community to access essential food and groceries through the introduction
of Community Hour, Coles Online Priority Service and Coles Online Remote Delivery Service;
• Increased total headcount by more than 5,000 during the year, including additional casual team members through
COVID-19;
• Additional food donations to the value of $7.9 million to SecondBite and Foodbank;
• One-off thank-you payment to store and supply chain team members; and
• Double discount on shopping and subsidised flu vaccinations offered to all team members.
Looking ahead
In considering performance metrics to apply for the FY21 STI, the Board has approved two key changes. Firstly, the
introduction of a specific Online sales metric for Executive KMP in place of the Cash Realisation metric. The exception
to this will be the CFO, who will retain the Cash Realisation metric. This shift demonstrates the importance of growth in
the online channel to achieving our strategic goals. Secondly, the Customer metric will be adapted from a blended
approach to a single Net Promoter Score (NPS) metric. This simplifies the measurement and highlights the importance of
going beyond merely satisfying our customers to recruiting them as advocates for our business.
The Board, as advised by the People and Culture Committee, regularly reviews the executive remuneration framework to
ensure it remains relevant, competitive and appropriate in the context of changing business and economic conditions.
The Board believes the current remuneration framework for the Executive KMP continues to reflect Coles’ strategy and
market positioning, and therefore has not proposed any further changes for FY21.
Richard Freudenstein
Chair of the People and Culture Committee
Introduction
The Directors of Coles Group Limited (‘Coles’ or ‘the Company’) present the Remuneration Report for the Company and its
controlled entities (collectively, ‘the Group’) for the financial year ended 28 June 2020 (‘FY20’). This report forms part of the
Directors’ Report, has been prepared in accordance with section 300A of the Corporations Act 2001 (Cth) and is audited.
This is Coles’ first Remuneration Report covering an entire year as a newly listed public company, following our demerger
from Wesfarmers Limited (‘Wesfarmers’) during FY19.
This Remuneration Report covers the period from 1 July 2019 to 28 June 2020.
Structure of this report
The Remuneration Report is divided into the following sections:

SECTION
(1) Key Management Personnel
(2) Remuneration governance
(3) Remuneration policy and structure overview
(4) FY20 Executive KMP remuneration outcomes
(5) FY20 Non-executive Director remuneration
(6) Ordinary Shareholdings
SECTION 1: KEY MANAGEMENT PERSONNEL
Coles is required to prepare a Remuneration Report in respect of the Group’s KMP, being the people who have the authority
and responsibility for planning, directing and controlling the Group’s activities, either directly or indirectly. This includes the
Board of Directors and Executive KMP.
In this Remuneration Report, ‘Executive KMP’ includes the Managing Director and CEO and all other executives considered
to be KMP. References to ‘Other Executive KMP’ means the Executive KMP excluding the Managing Director and CEO.
Table 1 sets out the details of those persons who were considered KMP of the Group during FY20.
Table 1
Non-executive Directors

NAME POSITION HELD1
James Graham AM Chairman and Non-executive Director
David Cheesewright Non-executive Director
Jacqueline Chow Non-executive Director
Abi Cleland Non-executive Director
Richard Freudenstein Non-executive Director
Wendy Stops Non-executive Director
Zlatko Todorcevski Non-executive Director
1 All Non-executive Directors were in office during the whole financial year and up to the date of this report.
Executive KMP

NAME POSITION HELD1
Steven Cain Managing Director and Chief Executive Officer
Leah Weckert Chief Financial Officer
Greg Davis Chief Executive, Commercial & Express
Matthew Swindells2 Chief Operations Officer
1 All Executive KMP were in office during the whole financial year and up to the date of this report.
2 Matthew Swindells became an Executive KMP on 1 July 2019, and the disclosures in this report are from that date onwards. Prior to this date, he held the
non-KMP position of Chief Supply Chain Officer.
Coles Group Limited 2020 Annual Report
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Coles Group Limited 2020 Annual Report
77
SECTION 2: REMUNERATION GOVERNANCE
2.1 Governance framework
The diagram below provides an overview of the remuneration governance framework that has been established by Coles.
Further information regarding the membership and meetings of the People and Culture Committee is provided in the
Directors’ Report.
Remuneration consultants and external advisors
External advisors may be engaged either directly by the People and Culture Committee, or through management, to
provide information on remuneration-related issues, including benchmarking information and market data.
During FY20 Mercer and PwC provided independent benchmarking and market analysis in relation to executive remuneration
to the People and Culture Committee. No remuneration recommendations were made by external consultants.
External advisors
The People and Culture
Committee may seek
advice from independent
remuneration consultants
in determining appropriate
remuneration policies
for the Group, and
specifcally remuneration
arrangements for the
Managing Director and
CEO, and executivelevel direct reports to the
Managing Director and
CEO.
Shareholders and
other stakeholders
The People and Culture
Committee may consult
with shareholders, proxy
advisors and other
relevant stakeholders,
in determining
appropriate remuneration
policies for the Group,
including remuneration
arrangements for the
Managing Director and
CEO, and executivelevel direct reports to the
Managing Director and
CEO.
Management
Management makes recommendations, to the People and Culture
Committee on matters including (but not limited to):
• remuneration arrangements of executive-level direct reports to
the Managing Director and CEO, including the establishment of
any new, or amendment to the terms of any existing, incentive
and equity plans;
• annual performance review of executive-level direct reports to
the Managing Director and CEO; and
• changes to the Group’s remuneration policies.
People and Culture Committee
The role of the Committee is to assist the Board in fulfilling its
responsibilities to shareholders and regulators in relation to the
Group’s remuneration policies. The Committee does this by
reviewing and making recommendations to the Board on matters
including (but not limited to):
• remuneration arrangements of Non-executive Directors,
the Managing Director and CEO, and executive-level direct
reports to the Managing Director and CEO;
• the annual performance review of the Managing Director
and CEO and executive-level direct reports to the Managing
Director and CEO;
• remuneration outcomes for the Managing Director and CEO
and executive-level direct reports to the Managing Director
and CEO; and
• delegating authority for the operation and administration
of all Group incentive and equity plans to management (as
appropriate).
The Board
The Board maintains overall accountability for oversight of the Group’s remuneration policies. Specifically, the Board approves all
remuneration and benefit arrangements as they relate to the Managing Director and CEO and executive-level direct reports to
the Managing Director and CEO, having regard to the recommendations made by the People and Culture Committee, and the
remuneration arrangements for Non-executive Directors.
The Board maintains absolute discretion to either positively or negatively adjust the remuneration outcomes for the Managing Director
and CEO and executive-level direct reports. The Board will use its discretion based on the provision of supporting data to substantiate the
requirement of an adjustment. Alternatively, they will use their own judgement and assessment of performance aligned to Coles’ values
and LEaD behaviours, risk, compliance, reputational, safety and sustainability considerations and the quality of earnings delivered.
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2.2 Corporate governance policies related to remuneration
To support a robust remuneration framework, Coles has a number of corporate governance policies related to remuneration,
including those outlined below.
2.2.1 Securities Dealing Policy
Coles has adopted a Securities Dealing Policy that applies to all Coles team members including Non-executive Directors
and Executive KMP and their connected persons, as defined within the policy. This policy sets out the insider trading laws
and restrictions with which KMP must comply, including obtaining approval prior to trading in Coles securities and not
trading within blackout periods. The policy aims to protect the reputation of the Group and maintain confidence in trading
in Coles securities. It also prohibits specific types of transactions being made which are not in accordance with market
expectations or may otherwise give rise to reputational risk.
2.2.2 Minimum Shareholding Policy
To build strong alignment between KMP and shareholders, Coles has established a Minimum Shareholding Policy. The
policy requires both Executive KMP and Non-executive Directors to build and maintain a significant shareholding in Coles.
Executive KMP
Each Executive KMP is required to achieve a minimum shareholding equivalent to 100% of total fixed compensation (‘TFC’)
by the later of five years from the date they commence or five years from the introduction of the policy on 1 July 2019. The
details of each Executive KMP shareholding are summarised in Tables 8.1 and 12.
In addition to Executive KMP, this policy also applies to all other executive-level direct reports to the Managing Director and CEO.
Non-executive Directors
Each Non-executive Director is required to hold at least 1,000 ordinary shares in the Company within six months of their
appointment. The shares may be held by a Non-executive Director either in his or her own name, or indirectly in the name
of either an entity controlled by the Non-executive Director or a closely related party.
Within five years of appointment, each Non-executive Director is expected to increase his or her shareholding to an amount
equivalent to 100% of their annual base fee at that time. As at the date of this Remuneration Report, each Non-executive
Director meets this requirement.
SECTION 3: REMUNERATION POLICY AND STRUCTURE OVERVIEW
3.1 Remuneration policy for FY20
In FY20, we introduced our updated remuneration framework aligned to our ‘Winning in our Second Century’ strategy. As
disclosed in the FY19 Remuneration Report, the FY20 framework is guided by our remuneration principles and designed to
ensure remuneration at Coles is market-competitive, performance-based, creates long-term value for shareholders, and
is fit-for-purpose.
In contrast to legacy remuneration arrangements established immediately following demerger, the FY20 framework is more
heavily focused on performance-based pay delivered through equity awards. When balanced with the performance
conditions to be achieved, the People and Culture Committee believes that the framework is appropriately aligned to our
strategy and the interests of our shareholders.

Market competitive
Retail is a globally
competitive industry.
We need to be able to
attract, motivate and retain
high calibre executives in
both the local and global
talent market. Performance-based
A strong link to
performance-based pay to
support the achievement
of strategy aligned to short,
medium and long-term
financial targets. Creates long-term value for
shareholders
Ensuring there is a common
interest between executives
and shareholders by
aligning reward to the
achievement of sustainable
shareholder returns. Fit-for-purpose
Designed to be relevant
to how Coles operates.
It needs to be simple to
articulate, drive the right
behaviours and ensure we
deliver on our strategy.
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3.2 Delivered through a simple, three-element structure
Executive KMP remuneration is delivered using both fixed and variable (at-risk) components as outlined below.
Specific performance measures and outcomes for FY20 are included in section 4.

Fixed elements Variable elements1
Total Fixed
Compensation
(TFC) Short-term incentive (STI) Long-term incentive (LTI)
How it is
delivered Cash Cash Equity (Shares) Equity (Performance Rights)
How it works • consists of base
salary and
superannuation
• target position
is the 50th
percentile of
the ASX 10-40
comparator
group (plus
reference
to local and
international
retailers, as
appropriate) • paid as part cash, part deferred equity
= Managing Director and CEO 50% is
deferred into shares and restricted for
2 years
= Other Executive KMP 25% is deferred into
shares and restricted for 1 year
• opportunity levels (all Executive KMP):
= 80% of TFC at Target
= 120% of TFC at Maximum
• measured against an individual balanced
scorecard consisting of:
= 60% financial measures
= 40% strategic and non-financial
measures
• includes a mixture of group and functional
strategic measures • delivered in performance rights, subject
to a 3 year Performance Period
• opportunity levels:
= Managing Director and CEO 175%
of TFC
= Other Executive KMP 150% of TFC
• measured against:
= 50% Relative TSR (RTSR)
(ASX 100 comparator group)
= 50% cumulative Return on Capital
(ROC)
• dividend equivalent payment made in
shares upon vesting
What it does Allows us to attract
and retain key
talent through
competitive
and fair fixed
remuneration Incentivises strong individual and Company
performance, based on strategically aligned
deliverables, through variable, at-risk
payments Aligns reward with creation of sustainable,
long-term shareholder value
1 Excludes transition arrangements put in place for the Managing Director and CEO as outlined in section 4.7
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The graphic below demonstrates the award delivery time horizons from FY20.
TFC

Financial Year 1
Performance period (3 years)
Performance Rights vest subject t o performance hurdles being met
Financial Year 2 Financial Year 3 Financial Year 4
Performance period (1 year)
Salary paid during the year
Performance period (1 year)
Other Executive KMP – 75% paid i
MD & CEO – 50% paid in cash
Other Executive KMP – 25% deferr
MD & CEO – 50% deferred into Sh n cash
2-
ed into Shares held in restriction fo
ares held in restriction for 2 years
1-year vesting perio year vesting period
r 1 year
d
LTI STI
3.3 FY20 target remuneration mix for Executive KMP
The FY20 remuneration mix at target for the Executive KMP is outlined below:
Chart 1
Managing Director and CEO Other Executive KMP
TFC
STI Cash
STI Equity
LTI
11%
11%
28%
50%
6%
18%
30%
46%
TFC
STI Cash
STI Equity
LTI
3.4 Executive KMP service agreements
The terms of employment for the Executive KMP are formalised in employment contracts that have no fixed term. Specific
information relating to the terms of the Executive KMP’s employment contracts is set out in Table 2.
Table 2

NAME NOTICE PERIOD1 RESTRAINT OF TRADE
Steven Cain 12 months 12 months
Leah Weckert 12 months 12 months
Greg Davis 6 months 6 months
Matthew Swindells 6 months 6 months
1 Executive KMP can be terminated without notice if they are found to have engaged in serious or wilful misconduct, are seriously negligent in the
performance of their duties, commit a serious or persistent breach of their employment contract, or commit an act, whether at work or otherwise, that
would bring the Group into disrepute. Coles may also make a payment in lieu of notice.
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SECTION 4: FY20 EXECUTIVE KMP REMUNERATION OUTCOMES
4.1 Company performance
This section of the Remuneration Report provides an overview of how the Company’s performance for FY20 has driven
remuneration outcomes for our Executive KMP.
Coles’ remuneration framework has been designed to reward Executive KMP for their contribution to the collective
performance of Coles and to support the alignment between the remuneration of Executive KMP and shareholder returns.
Table 3 summarises key indicators of Coles’ performance and relevant shareholder returns over FY20.
As Coles listed on the ASX on 21 November 2018, it is not possible to address the statutory requirement that Coles provide
a five-year discussion of the link between Company performance and remuneration. Details are included for FY19 as well
as the first full year of results in FY20. This table will continue to be expanded in future years to provide comparative metrics
for the financial years in which Coles is listed.
Table 3

FINANCIAL SUMMARY BASIS YEAR ENDED
28 JUNE 2020 YEAR ENDED
30 JUNE 2019
Group Earnings Before Interest and Tax (EBIT) Statutory $1,762m $1,467m
Group EBIT (pre AASB 16 and significant items) Statutory $1,387m $1,343m
Group Sales1 Retail $37,408m $35,001m
Group Sales (adjusted retail basis)2 Retail $38,109m $35,741m
Return on capital (ROC) (pre-AASB 16 and significant items)3 Statutory 35.2% 32.9%
Dividends paid per ordinary share (cents)4 65.5 –
Closing share price (as at end of financial year)5 $16.79 $13.35
Total shareholder return (TSR) (%)6 31.7% 6.9%
1 Retail sales reflect the retail calendar period and exclude Fuel sales and Hotels sales.
2 Retail sales adjusted to include concession sales and remove flybuys point redemption costs.
3 ROC is Group EBIT (pre AASB 16 and significant items) divided by capital employed. Capital employed is calculated on a rolling average basis (seven
months in FY19).
4 The dividends paid per ordinary share reflect the dividends shareholders received within each financial period. Dividends paid within each financial year
does not reflect the dividends determined for the same financial year due to the dividend payment date. The Directors determined a dividend relating
to FY19 of 35.5 cents per share (final dividend of 24.0 cents per share plus special dividend of 11.5 cents per share) which was paid on 26 September 2019.
Similarly, the interim dividend of 30.0 cents per share was paid on 27 March 2020. The final dividend determined by Directors for FY20 was 27.5 cents per
share to be paid on 29 September 2020 (FY21).
5 The opening share price on listing on the ASX on 21 November 2018 was $12.49.
6 TSR is calculated as the change in share price during the financial year, plus dividends reinvested on the respective ex-dividend dates.
4.2 Board oversight of remuneration outcomes
The Board maintains absolute discretion to ensure that remuneration outcomes are appropriate in the context of the
Company’s performance, our customer experience and shareholder expectations. The Board has discretion in evaluating
the achievement against performance measures, including to adjust for unusual factors. The Board recognises that
COVID-19 has created a challenging environment that needs to be considered when determining remuneration outcomes.
As part of its assessment, the Board considered if there were windfall gains or losses and determined that the calculated
remuneration outcomes appropriately aligned to shareholder outcomes and the Board’s assessment of management’s
performance. The steps undertaken by the Board to inform this decision with respect to STI outcomes for FY20 are further
outlined in section 4.4.
4.3 Total fixed compensation (TFC)
For FY20, TFC was designed to be competitive to attract, motivate and retain the right talent. As disclosed in the FY19
Remuneration Report, the TFC for Executive KMP was compared to the ASX 10-40 benchmark group, as well as both local
and international retailers. TFC was targeted at the 50th percentile of this peer group for comparable roles.
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At the start of FY20, the Board conducted a detailed review of Executive KMP TFC and total remuneration packages
against the new comparator group. This was informed by a detailed benchmarking exercise conducted by Mercer. The
timing of this review coincided with the restructure of the Executive Leadership Team, aligned to the launch of the new
company strategy. In light of the review outcomes, the Board determined that it was appropriate to apply a TFC increase
to each of the Executive KMP, with the exception of the Managing Director and CEO, who did not receive an increase.
The increase for Other Executive KMP was effective from 1 July 2019 and is reflected in the summary of total remuneration
received by Executive KMP in Table 7 of this report.
In making this decision the Board considered the following:
• no prior increases – there had been no increase in TFC for any of the Executive KMP at the time of listing on the ASX (in
November 2018);
• size and complexity of role, and the individual’s experience, skills and performance – since demerger in 2018, the
Executive KMP have continued to deliver performance consistent with, and in some cases, exceeding Board
expectations, resulting in strong returns for shareholders; and
• alignment to our remuneration principles – the increase in TFC reflects our ‘market competitive’ principle, ensuring that
we continue to attract, motivate and retain high calibre executives in both the local and global talent market.
A review of fixed remuneration will be conducted in FY21 in line with our remuneration principles. Any approved changes
will be disclosed in our 2021 Remuneration Report.
4.4 Short-term incentive (STI)
The FY20 Coles STI is designed to reward Executive KMP for the achievement of key short-term performance measures.
A balanced scorecard approach was introduced for all Executive KMP in FY20. This provides a simple and transparent
approach to highlighting performance priorities, measuring performance outcomes against each weighted metric, and
provides clarity regarding the connection between the performance assessment and reward outcomes.
The FY20 STI payable for the Executive KMP was assessed against individual balanced scorecards (as demonstrated in
Tables 4 and 5) consisting of Financial, Strategic and Non-financial metrics. The scorecards also include a mixture of group
and functional strategic metrics. Scorecard metrics are reviewed by the Board on an annual basis to ensure alignment with
the Company’s strategy. The scorecards also include a Quality and Behaviours overlay which considers:
• how the Executive KMP achieved performance aligned to the Coles values and LEaD behaviours;
• risk, compliance and reputational matters; and
• the quality of earnings delivered.
Table 4
FY20 Financial Performance Measures (All Executive KMP)
The Executive KMP have a maximum STI opportunity equivalent to 150% of target (80% of TFC at target and 120% of TFC
at maximum). The FY20 Group Financial performance measures contribute up to 110% of the target STI opportunity for all
Executive KMP (60% at target) as outlined in Table 4.

MEASURE FY20 TARGET FY20 ACTUAL ACHIEVEMENT TARGET
WEIGHTING MAXIMUM
WEIGHTING ACTUAL STI
OUTCOME
Group EBIT $1,343m $1,387m Above Stretch 35% 70% 70%
Group Sales $36,636m $38,109m Above Stretch 15% 30% 30%
Group Cash Realisation 107% 111% Above Target 10% 10% 10%