Wesfarmers Limited · ASX:WES
Wesfarmers — Investor Day (June 2022)
128 slides from Wesfarmers's investor day presentation, Jun 2, 2022
Slide 1: 2022 Strategy Briefing Day Presentation
2 June 2022 The Manager Market Announcements Office Australian Securities Exchange Dear Manager, 2022 STRATEGY BRIEFING DAY PRESENTATION Following is a presentation that will be given today, Thursday 2 June 2022, at a Strategy Briefing Day in Sydney which is scheduled to commence at 6:30am AWST / 8:
Slide 2: 2022 Strategy Briefing Day
2022 Strategy Briefing Day To be held on Thursday 2 June 2022
Slide 3: Agenda
Agenda Time (AEST) Topic Presenter 8:00am – 8:30am Registration 8:30am – 9:35am Introduction and Group overview Rob Scott, Anthony Gianotti and Naomi Flutter 9:35am – 10:05am Chemicals, Energy and Fertilisers Ian Hansen 10:05am – 10:25am Morning tea 10:25am – 11:15am Bunnings Group Michael Schneider
Slide 4: Introduction and Group overview
Introduction and Group overview Rob Scott Managing Director, Wesfarmers Limited
Slide 5: Wesfarmers' primary objective is to provide a satisfactory return to shareholders
Wesfarmers’ primary objective is to provide a satisfactory return to shareholders We believe it is only possible to achieve this over the long term by: Anticipating the needs of our Looking after our team Engaging fairly with our customers and delivering members and providing a safe, suppliers and s
Slide 6: Priorities aligned with the Wesfarmers Way
Priorities aligned with the Wesfarmers Way To provide a satisfactory return to shareholders The Wesfarmers Way Strengthen Secure growth Renew Ensure provides a shareholder-focused existing businesses opportunities the portfolio sustainability objective and four value-creating through operating throu
Slide 7: Significant progress on ecosystem and new platforms for growth
Significant progress on ecosystem and new platforms for growth Data and digital Platforms for Accelerate the pace of ecosystem long-term growth continuous improvement Established Wesfarmers Development of Mt Holland Enhancing OneDigital in 2H FY22 lithium project supply chain capabilities Extended b
Slide 8: Wesfarmers' portfolio has expanded and strengthened
Wesfarmers’ portfolio has expanded and strengthened, with a focus on essential products for consumers and industry 2018 2022 New: Wesfarmers Limited | 2022 Strategy Briefing Day | 7
Slide 9: Key priorities centred around providing the best value and enhancing the customer experience
Key priorities centred around providing the best value and enhancing the customer experience Bunnings Kmart WesCEF Officeworks Group Group Portfolio of businesses A growing addressable market and well positioned to meet Grow addressable market and supplying products to changing customer needs, marke
Slide 10: Key messages
Key messages • The Group is well positioned for the post-COVID environment, having strengthened the capabilities of existing divisions and with new platforms for future growth • Wesfarmers’ retail divisions are well equipped to manage inflationary pressures and view this as an opportunity to profita
Slide 11: Group financial update
Group financial update Anthony Gianotti Chief Financial Officer, Wesfarmers Limited
Slide 12: Key focus areas
Key focus areas Active capital Disciplined Strong and flexible allocation working capital balance sheet to deliver long-term earnings to meet customer needs and to support and cash flow growth manage external volatility further investment Wesfarmers Limited | 2022 Strategy Briefing Day | 11
Slide 13: Capital allocation and portfolio management approach
Capital allocation and portfolio management approach The Group’s unique characteristics support the delivery of superior returns: Long-term Ability to leverage Financial Synergies Balance sheet Trusted partner investment data and digital discipline with divisions flexibility and acquirer horizon pla
Slide 14: Disciplined capital allocation processes
Disciplined capital allocation processes Capex Opex M&A • Annual hurdle rate setting, having • Adapting processes to new styles • Risk adjusted expected returns regard to risk and return potential of investment while maintaining measured against risk adjusted of existing divisions commercial discipl
Slide 15: Working capital
Working capital • Long-term working capital movements reflect: Inventory cashflow by division – Disciplined management with focus on cash flows – Seasonality impacts of retail and fertilisers Half on half, $m Pre-COVID 1,500 • Recent working capital volatility has reflected: 1,000 500 – Lower invent
Slide 16: Capex and balance sheet
Capex and balance sheet • Growth in net capex reflects: – Investment in Mt Holland lithium project Net Capex and acquisitions (cont. ops)1,2 – Data and digital investment $m – Network investment 1,500 • Expecting FY22 net capital expenditure of $900m to $1,000m 1,000 – Includes approximately $320m r
Slide 17: Environment, social and governance (ESG) update
Environment, social and governance (ESG) update Naomi Flutter Executive General Manager, Corporate Affairs, Wesfarmers Limited
Slide 18: Wesfarmers' most material ESG issues
Wesfarmers’ most material ESG issues Health, safety Data, IT & cyber Governance, corporate Climate resilience Circular economy & wellbeing security conduct & ethics Aboriginal & Torres Ethical sourcing People development, Product quality, safety Community Strait Islander & human rights diversity & i
Slide 19: Strategic approach drives long-term impact and value
Strategic approach drives long-term impact and value – Over many years, the divisions have all realised opportunities to create significant long-term value by embedding greater ESG- awareness in their operations and strategies – Likewise, ESG-awareness has supported Wesfarmers’ approach to capital a
Slide 20: Building climate resilience
Building climate resilience Strategic approach Impact and value Future opportunities Approach set through the Group A decoupling in business Investment in incremental capability Climate Change Policy performance and emissions Increased focus on data Ambitious targets including net zero Extensive ope
Slide 21: Resource awareness delivering circular outcomes
Resource awareness delivering circular outcomes Strategic approach Impact and value Future opportunities Emerging trend, intuitively understood Operational waste diversion Product design and materials by customers (in addition to packaging) Redesign of packaging Group-wide strategies being developed
Slide 22: Advancing reconciliation and inclusion
Advancing reconciliation and inclusion Strategic approach Impact and value Future opportunities Approach reflected in new Elevate RAP Group Indigenous employment Employment focus extended to parity regained include career progression among Indigenous leaders Strategies recognise our scale and nation
Slide 23: Group Q&A
Group Q&A Rob Scott Anthony Gianotti Managing Director, Wesfarmers Limited Chief Financial Officer, Wesfarmers Limited Naomi Flutter Executive General Manager, Corporate Affairs, Wesfarmers Limited
Slide 24: Wesfarmers Chemicals, Energy & Fertilisers
Wesfarmers Chemicals, Energy & Fertilisers Ian Hansen Managing Director, Wesfarmers Chemicals Energy & Fertilisers
Slide 25: WesCEF Overview
WesCEF Overview To grow a portfolio of leading, sustainable businesses that provide products into critical industries WesCEF is guided by its vision and strategies in Foster a culture that decision making and Safe person, Evolve through Enhance recognises diversity strategic focus… Safe process, our
Slide 26: Continued development of WesCEF
Continued development of WesCEF Existing businesses working with Establishing new business lines New commitments continue long-term customers to provide to pursue and explore WesCEF’s decarbonisation journey towards key products to adjacent net zero critical industries opportunities by 2050 Wesfarme
Slide 27: Kwinana location
Kwinana location • Over 50 years of continuous WesCEF operations Legend • Strategically located industrial complex with Covalent Lithium Refinery access to: Fertilisers – Dampier to Bunbury natural gas pipeline Ammonia/AN Sodium Cyanide (AGR) – Rail corridor LPG & LNG – Priority port berthing rights
Slide 28: Divisional integration
Divisional integration Inputs WesCEF processes Outputs Power Utilities and Environmental integration services management Retail natural gas sales through Natural gas WA gas distribution network Sourced through gas distribution network CO2 by-product sales Ammonia plant Ammonia Ammonia imports Nitric
Slide 29: Commodity price and supply chain update
Commodity price and supply chain update USD/t 1,400 1,200 1,000 800 600 400 200 0 1/01/2008 1/01/2010 1/01/2012 1/01/2014 1/01/2016 1/01/2018 1/01/2020 1/01/2022 Ammonia - CFR Far East Saudi CP Commodity prices • High commodity prices are impacting all WesCEF businesses; favourable for locally manuf
Slide 30: WesCEF strategic focus areas
WesCEF strategic focus areas Decarbonisation • Drive divisional decarbonisation strategy, including net zero roadmap • Utilise existing chemical processing expertise to investigate medium and long-term abatement and low carbon growth opportunities Expansion projects • Evaluate opportunities to lever
Slide 31: WesCEF's 2050 Net Zero Roadmap
WesCEF’s 2050 Net Zero Roadmap Baseline 40 % Partnerships with: Reduction Relative to unabated 2020 baseline Relative to abated 2020 baseline (2012 – 2020)
Slide 32: Business update and current priorities: Lithium
Business update and current priorities: Lithium Mt Holland village Mt Holland aerodrome Mining and construction of concentrator Construction at Kwinana refinery Project fundamentals Project and market update Current priorities • First production from refinery: 2H CY24 • Mt Holland village and aerodr
Slide 33: Business update and current priorities: Chemicals
Business update and current priorities: Chemicals Business update • Chemicals production benefiting from unprecedented global commodity prices • Strong growth in demand for ammonium nitrate by WA mining and agricultural customers • International Sodium Cyanide customers are recovering from COVID-19
Slide 34: Business update and current priorities: Energy
Business update and current priorities: Energy Business update • Strong performance in LPG driven by higher Saudi CP1 and closure of BP’s Kwinana Refinery in 2021 • Completed repurposing of existing storage tank to optimise condensate market opportunity • Strong focus on customer service to drive co
Slide 35: Business update and current priorities: Fertilisers
Business update and current priorities: Fertilisers Business update • Positive grower sentiment following a strong 2021 harvest and good 2022 seasonal rainfall • Investment in additional despatch capability and improvements to key infrastructure across all regional locations • Launch of full-service
Slide 36: Key messages and outlook
Key messages and outlook Strategic focus areas Outlook • Drive divisional decarbonisation strategy, including net • Chemicals businesses are expected to continue benefiting zero roadmap, and evaluate medium and long-term from a strong global ammonia price abatement and low carbon growth opportunitie
Slide 37: Q&A Wesfarmers Chemicals, Energy & Fertilisers
Q&A Wesfarmers Chemicals, Energy & Fertilisers Ian Hansen Aaron Hood Managing Director, WesCEF Chief Financial Officer, WesCEF
Slide 38: Appendix: WesCEF overview
Appendix: WesCEF overview Chemicals Energy Fertilisers Lithium Description Production and distribution of Production and distribution of Import, production and Production of battery grade ammonia, ammonium nitrate LPG and LNG and retailer of distribution of fertilisers and lithium hydroxide (current
Slide 39: Appendix: Grey, Blue and Green Ammonia
Appendix: Grey, Blue and Green Ammonia Wesfarmers Limited | 2022 Strategy Briefing Day | 38
Slide 40: Bunnings Group
Bunnings Group Michael Schneider Managing Director, Bunnings Group
Slide 41: Track record of growth through the cycle
Track record of growth through the cycle Bunnings has grown its addressable market from $39 billion in 2007 to $100 billion in 2022 SALES EARNINGS 1. Includes Bunnings warehouse, small format stores, trade centres, Tool Kit Depot stores and frame and truss sites. 2. Australian and New Zealand market
Slide 42: Growth focus across customers, products, services and channels
Growth focus across customers, products, services and channels Wesfarmers Limited | 2022 Strategy Briefing Day | 41
Slide 43: Bunnings strategic agenda
Bunnings strategic agenda Building Consumer Commercial Supply Chain Tech and the Best Team & Growth Growth Evolution Innovation Making a Positive Difference Wesfarmers Limited | 2022 Strategy Briefing Day | 42
Slide 44: Building the best team
Building the best team Team and culture • Live our culture and drive engagement • Continued focus on learning and development • New talent to support new capabilities • Inclusion and diversity • Grassroots community activities Safety and wellbeing • Ongoing focus on a COVID-safe environment • Improv
Slide 45: Making a positive difference
Making a positive difference Sustainability Community • Will source 100% renewable electricity by 2025 to help • Strong commitment to community partnerships and achieve net zero Scope 1 and 2 emissions by 2030 involvement, focusing on the issues that matter most – Long-term renewable power purchase
Slide 46: Consumer growth
Consumer growth Lowest Price • Deliver more value • Go harder on lowest prices that matter the most • Disciplined focus on lowest cost. Drive operational efficiency, leverage volume Image of Aisle end – to purchase at the lowest cost great value product • Own brand products to provide greater value
Slide 47: Consumer growth: continue to expand existing and new categories
Consumer growth: continue to expand existing and new categories Expanding depth in existing range Over the past 10 years, Pic Bunnings has evolved from a warehouse model offering on average 34,000 SKUs Room furniture Garden and Kitchen and to an omni-channel business and storage Garden Decor Bathroo
Slide 48: Commercial growth
Commercial growth Strengthen the offer • Best experience where it matters: instore, online and on-site • Right product and value • Range expansion to better cater for each stage of the build and needs of specialist trades Develop new capabilities to drive growth • Further digitise the customer exper
Slide 49: Commercial growth: opportunities across the whole of build
Commercial growth: opportunities across the whole of build Equip Frame to fix Fit-out Finishing the trades Building materials used Products used in in residential build Building materials used Scope residential build stage Tools of trade required stages of frame, lockup in residential build stage of
Slide 50: Supply chain evolution: unique supplier relationships
Supply chain evolution: unique supplier relationships • Strong partnerships with over 1,600 suppliers representing some of Australia, New Zealand and the world’s most trusted brands • Diversified supply chain using a combination of Bunnings, supplier and third-party providers to support sourcing, di
Slide 51: Supply chain evolution
Supply chain evolution Priority is to maintain strong in-stock positions to support customer demand • Supply chain challenges and variability expected to continue in short to medium term Opportunities for incremental improvements to support: • More efficient store replenishment and higher stock avai
Slide 52: Network growth and expansion
Network growth and expansion WAREHOUSES SMALL FORMAT STORES 282 68 NETWORK GROWTH BEAUMONT TILES • Plan 15 to 20 upgraded, expanded TRADE CENTRES 114 33 or new Bunnings warehouses and small formats per year • New formats to support growth • Evolving the supply chain to 9 TOOL KIT DEPOT support onlin
Slide 53: Tech and innovation
Tech and innovation Developing deep capability across e-commerce, digital and data New retail and trade e-commerce platforms • More than 12 million online visits per week • 1.7 million views of D.I.Y. articles and YouTube videos every week Strong omni-channel offer • 4 million Drive & Collect orders
Slide 54: Tech and innovation (video)
Tech and innovation Available from: https://www.wesfarmers.com.au/strategy-videos-JUN22. Wesfarmers Limited | 2022 Strategy Briefing Day | 53
Slide 55: Tech and innovation: connected experience
Tech and innovation: connected experience Connected experience across the customer journey Delivering seamless instore and online benefits to enhance customer experience, business efficiency and supplier engagement Wesfarmers Limited | 2022 Strategy Briefing Day | 54
Slide 56: Tech and innovation: Leveraging data and insights to improve customer experience
Tech and innovation: Leveraging data and insights to improve customer experience and deliver productivity gains FOR A SPECIFIC CUSTOMER, ACCOUNT HOLDER OR TARGETED AUDIENCE/SEGMENT At the right time Time of day/ Location Weather Project Day of week Frequency Delivered by the right channel Website Pa
Slide 57: Key messages and outlook
Key messages and outlook • Continue to innovate to grow the market and our ability to participate in it across products, services and experiences • Clear focus on growth across consumer and commercial – leveraging strong demand from the trade and housing sector – underpinned by a structural shift in
Slide 58: Q&A Bunnings Group
Q&A Bunnings Group Michael Schneider Rachael McVitty Managing Director, Bunnings Group Chief Financial Officer, Bunnings Group
Slide 59: Kmart Group
Kmart Group Ian Bailey Managing Director, Kmart Group
Slide 60: Kmart Group overview
Kmart Group overview Iconic Australian retail brands with differentiated customer propositions Leading product development company with Focused offer centred on apparel and soft home, lowest prices, broad range, and strong engagement targeting “mum” as the core customer across all customer segments
Slide 61: A sustainable development leader in Australian retail
A sustainable development leader in Australian retail Track record and existing commitments Opportunities in a circular economy • Scale and breadth of operations across Kmart and Developing strategies and commitments Target provide a unique position to drive meaningful across multiple areas to make
Slide 62: Kmart
Kmart Ian Bailey Managing Director, Kmart Group
Slide 63: Kmart vision
Kmart vision Wesfarmers Limited | 2022 Strategy Briefing Day | 62
Slide 64: Scale drives unique competitive advantages
Scale drives unique competitive advantages Existing capabilities Emerging capabilities Unique Market leading Standardised to competitive product CODB advantage Rapid adoption and personalised, the advantages brand with through high store + application of digital right products for= … significant pro
Slide 65: Strategic priorities to grow share of wallet
Strategic priorities to grow share of wallet Leverage product development capabilities • Launch new categories • Expand range in existing categories Accelerate online Digitise sourcing and supply chain • Extended ranges • Better match supply with demand • More occasions • Better and more on-trend pr
Slide 66: Leverage product development capabilities
Leverage product development capabilities Kmart has a large and growing addressable market with significant opportunity to grow share of wallet Apparel (share c. 6%) Kids GM & Active (share c. 6%) Home & Living (share c. 9%) Total Australian market ~$36b Total Australian market ~$26b Total Australia
Slide 67: Accelerate online
Accelerate online Significantly improve the online customer experience while realising improved efficiency Substantial opportunity to profitably grow online Kmart customer frequency by channel1 Average visits p.a. • Online channel is profitable today, but significant opportunity to improve productiv
Slide 68: Digitise sourcing and supply chain
Digitise sourcing and supply chain Long- Dramatically reduced lead Greater accuracy of Continued reduction of term times supporting on-trend supply and demand end-to-end costs vision product ranges matching Supplier collaboration driving a Systematic approach to 50% reduction in 30-day reduction in
Slide 69: Digitise instore experience and operating model
Digitise instore experience and operating model Utilising data & technology to drive the instore experience & make stores simpler to run Successfully completed Initial Incremental sales from improved pilot of RFID for apparel benefits availability Lower markdown costs • Weekly inventory accuracy >99
Slide 70: Personalising the customer relationship
Personalising the customer relationship Increasing our engagement with customers through personalised interactions Instore ~175m instore Kmart ~390m website Marketing ~2.4b digital visits transactions website sessions platforms impressions Enriched by Group assets Kmart data asset - Sophia ~5m conta
Slide 71: Kmart vision
Kmart vision Wesfarmers Limited | 2022 Strategy Briefing Day | 70
Slide 72: Target
Target Richard Pearson Managing Director, Target
Slide 73: Target vision
Target vision Wesfarmers Limited | 2022 Strategy Briefing Day | 72
Slide 74: Target has successfully reset its operating model
Target has successfully reset its operating model Target is a smaller, simpler business focused on achieving consistent profitability • Cost base has been significantly reduced, including a structural reduction in support office costs • Continued reduction in lease liability from $1.1b in June 2020
Slide 75: Clear customer, product and channel strategies in place
Clear customer, product and channel strategies in place • Focused offer centred on apparel and soft home, targeting “mum” as the core customer – Affordable quality the key differentiator with a focus on continued improvement in customer perception of quality, value and style • Digitally-led proposit
Slide 76: Future growth will be digitally led
Future growth will be digitally led Online is a meaningful and growing customer channel • Penetration of 20.7%1, with growing app usage Leveraging Kmart and OneDigital ecosystem to acquire new customers and increase engagement through personalisation • Rich customer data foundation and addressable a
Slide 77: Kmart Group
Kmart Group Ian Bailey Managing Director, Kmart Group
Slide 78: Uniquely placed for an inflationary environment
Uniquely placed for an inflationary environment Where families come first for the lowest prices on everyday items Well positioned to leverage price leadership in inflationary market • Control over end to end supply chain provides Ongoing cost of living ultimate flexibility to manage costs pressure w
Slide 79: Key messages and outlook
Key messages and outlook • Uniquely placed in an inflationary environment to extend low price leadership • Full year sales benefit of store conversions to be realised in FY23 • Grow share of wallet by leveraging product development capability, growing online, and personalising the customer experienc
Slide 80: Q&A Kmart Group
Q&A Kmart Group Ian Bailey Richard Pearson Aleks Spaseska Managing Director, Kmart Group Managing Director, Target Chief Financial Officer, Kmart Group
Slide 81: Officeworks
Officeworks Sarah Hunter Managing Director, Officeworks
Slide 82: Officeworks strategy
Officeworks strategy Purpose, vision and strategies unchanged… …current focus on productivity, efficiency and growth. Wesfarmers Limited | 2022 Strategy Briefing Day | 81
Slide 83: Delivering sustainable long-term growth
Earnings [LHS] Delivering sustainable long-term growth Well positioned for long-term growth History of sales and earnings growth • Well established every-channel offer with significant scale: $m % – 168 stores and $1b+ online sales 250 25 – 9,500+ team members 200 20 – Australia-wide B2B team 150 15
Slide 84: Expanding addressable market
Expanding addressable market Current Potential ~$28bn11 ~28bn ~56bn ~$56bn 11% Extended Print & Create, Extended Stationery, Education & Art, Furniture, Technology, Education, Business, and Technology, Print & Create Connected Customer 1. Includes B2C and Small business tech support. Wesfarmers Limi
Slide 85: Changing customer needs are creating new opportunities
Changing customer needs are creating new opportunities Officeworks has a broad customer base and growing data analytics capabilities are providing a deeper understanding of customer personas, enabling a more relevant offer Households Businesses Education (B2C & B2B) With current trends and challenge
Slide 86: Customer experience
Customer experience Continuing to invest in an easy and engaging customer experience across every channel Great service across every-channel • Investing in 2-hour click and collect • Leverage the print and create service re-platform Digitally enhanced shopping experience • Leverage Flybuys to accele
Slide 87: Operational excellence
Operational excellence Driving productivity and capacity by automating, digitising and simplifying operations In stores and support centre… … and through the supply chain • Improve inventory processes and systems to • Modernise customer fulfilment centres (CFC) to increase availability and lower cos
Slide 88: Growing our business (Victorian CFC Update video)
Victorian CFC Update Available from: https://www.wesfarmers.com.au/strategy-videos-JUN22. Wesfarmers Limited | 2022 Strategy Briefing Day | 87
Slide 89: Growing our business
Growing our business Delivering low prices, widest range and great service to grow our core market Wesfarmers Limited | 2022 Strategy Briefing Day | 88
Slide 90: Growing our business
Growing our business Continuing to evolve the core offer while adding new customer segments and services Own brand B2B education Flexiworks • Portfolio of own brand ranges including • Evolving technology offer to support • Supports the shift towards hybrid and J Burrows, Keji, Kadink, Studymate ‘BYO
Slide 91: Our team & connecting with our communities
Our team & connecting with our communities Building brand trust by looking after our team, our communities and the planet • Continued focus on team member safety, health and wellbeing • Strengthen Officeworks as an employer of choice, attracting, retaining and upskilling our team • Progressing our P
Slide 92: Key messages and outlook
Key messages and outlook • Officeworks’ everyday low-prices, wide range, great service and established every-channel offer position it well in the current operating environment • Continued expansion of product and service offer, expanding the addressable market • Continuing to leverage data and digi
Slide 93: Q&A Officeworks
Q&A Officeworks Sarah Hunter Brendan Hargreaves Managing Director, Officeworks Chief Financial Officer, Officeworks
Slide 94: Wesfarmers OneDigital
Wesfarmers OneDigital Nicole Sheffield Managing Director, Wesfarmers OneDigital
Slide 95: Building a market-leading data and digital ecosystem
Building a market-leading data and digital ecosystem Market-leading retail brands More visits and Greater scale and benefits deeper customer through connected engagement communities and One partnerships Household Better value and more convenience for customers Better understanding of the customer We
Slide 96: Building a market-leading data and digital ecosystem
Building a market-leading data and digital ecosystem Will power the Group’s data and digital growth ambitions, increasing customer lifetime value and accelerating growth in the Group’s divisions Design Value Each division retains responsibility for its own OneDigital established to deliver increment
Slide 97: Accelerating our journey with OnePass
Accelerating our journey with OnePass Advanced Catch acquired by Digital and data Kmart and Target Iteratively scaling OnePass Step out Analytics Wesfarmers in 2019 ecosystem investment join OnePass • Launch rewards opportunities Centre announced for FY22 • Launch mobile app Anko products establishe
Slide 98: The ultimate membership for customers and cornerstone of our OneDigital vision
OnePass proposition The ultimate membership for customers and cornerstone of our OneDigital vision Seamless experience Better value and more Personalised, data-led across Australia’s most convenience offers and interactions loved brands Customer lifetime value Membership drives increased frequency,
Slide 99: OnePass progress
OnePass progress • Built a secure and highly-automated cloud-native technology platform that enables agility and speed to market • Integrated three launch brands (Kmart, Target, Catch) • Customer proposition and design informed by research with over 50,000 participants • Governance structure impleme
Slide 100: Evolution of Advanced Analytics Centre into OneData
Evolution of Advanced Analytics Centre into OneData The Advanced Analytics Centre (AAC) was initially established to build a Group-wide view of customers through the use of data science… 1.7 billion customer touch points, Driving understanding of customer preferences 13 million known customers acros
Slide 101: Key messages and outlook
Key messages and outlook • OneDigital is uniquely placed to leverage the Group’s retail brands and generate incremental value for customers and divisions • Membership program OnePass will drive increased customer lifetime value • OneData will allow the Group to be more customer centric and provide n
Slide 102: Catch vision
Catch vision To be the trusted place where Australians start their shopping journey Catch will offer customers the leading brands they know and love at competitive prices, with a personalised shopping experience and fast delivery Wesfarmers Limited | 2022 Strategy Briefing Day | 101
Slide 103: Catch progress
Catch progress Catch pre-2019 Catch today Niche marketplace focused on a first party Building scale and fulfilment capabilities as a daily deals-based offer broad, general merchandise marketplace Catch has built a strong foundation over the last two years… • 2x distribution centres with increased au
Slide 104: Catch strategic priorities
Catch strategic priorities Leading Differentiated Shopping Value Wider Range Fast Delivery Brands Offer Experience Enhancements 1 Invest in Curate the 1P Launch more Development of Leverage data and Introduce fulfilment Marketplace range, focusing on Wesfarmers national fulfilment analytics to creat
Slide 105: Fulfilled by Catch
Fulfilled by Catch A compelling national delivery proposition to support the growth of Catch and provide benefits across the Group’s retail businesses New 36,000sqm Catch distribution facility in Fulfilled by Catch to be trialled in Kmart, with Continued, disciplined investment in state- Moorebank,
Slide 106: Key messages and outlook
Key messages and outlook • Catch will focus on executing its strategic priorities and enhancing the customer value proposition • Continuing to invest to drive and support long-term growth, including through: ‒ Development of national fulfilment network with state-of-the-art automated fulfilment cent
Slide 107: Q&A Wesfarmers OneDigital
Q&A Wesfarmers OneDigital Nicole Sheffield Ian Bailey Managing Director, Wesfarmers OneDigital Managing Director, Kmart Group
Slide 108: Wesfarmers Industrial and Safety
Wesfarmers Industrial and Safety Tim Bult Managing Director, Wesfarmers Industrial and Safety
Slide 109: Divisional overview
Divisional overview Provider of safety, Manufacturer and Risk management and Industrial, medical and workwear and supplier of workwear compliance service specialty gas supplier industrial supplies and uniform solutions provider Providing confidence in the products and services we deliver Safe work e
Slide 110: Historical earnings and safety performance
Historical earnings and safety performance WIS earnings performance1 WIS TRIFR2 (R12) EBT, $m TRIFR (R12) 140 2H 10 1H 120 8 100 80 6 60 4 40 2 20 0 0 FY17 FY18 FY19 FY20 FY21 1H22 FY17 FY18 FY19 FY20 FY21 1H22 • Disappointing performance in recent years, which included • TRIFR has improved signific
Slide 111: Blackwoods
Blackwoods Business update Current priorities and growth • Strengthening relationships with strategic customers • Enhance customer value proposition through unbeatable range, • Executing integrated supply program delivering end-to-end reliability, expertise and ease to do business procurement soluti
Slide 112: Coregas
Coregas • Tailored offers to major customers supporting increased market share, including with major mining customers • Continued expansion of presence in healthcare sector – Completed small bolt on acquisition to enable entry into new health segments • Strength in Trade N Go Gas offer • Leveraging
Slide 113: Workwear Group and Greencap
Workwear Group and Greencap • Growth from key brands of c. 10% p.a. since 2017, • Ability to deliver services was impacted by lockdowns in supported by new product innovation and development, FY22 and improved service levels • Demand in Consulting remains strong with a growing • New distribution cha
Slide 114: Key messages and outlook
Key messages and outlook • Focused on continuing to improve the customer value proposition, enhance operational capabilities and execute new growth opportunities – Providing confidence in the offer by delivering the right product with reliable supply – Investing in data and digital capabilities to i
Slide 115: Q&A Wesfarmers Industrial and Safety
Q&A Wesfarmers Industrial and Safety Tim Bult Dan McArtney Managing Director, Wesfarmers Industrial and Safety General Manager Finance, Wesfarmers Industrial and Safety
Slide 116: Appendix: WIS divisional overview
Appendix: WIS divisional overview Description Provider of safety, Industrial, medical and Manufacturer and supplier Risk management and workwear and industrial specialty gas supplier of workwear and uniform compliance service supplies solutions provider Competitive #1 Australia #3 challenger #1 for
Slide 117: Wesfarmers Health
Wesfarmers Health Emily Amos Managing Director, Wesfarmers Health
Slide 118: Wesfarmers Health supported by strong industry fundamentals
Wesfarmers Health supported by strong industry fundamentals An important, large sector Increasing demand for Data and digital to transform with long-term growth health, beauty & wellbeing customer journeys in tailwinds products and services healthcare Australian healthcare spend of c. $200bn Custome
Slide 119: Introduction to API
Introduction to API A portfolio of complementary wholesale and retail businesses in the growing health, beauty and wellbeing sector Pharmacy Distribution Priceline Clear Skincare Clinics Each business has its own unique competitive advantages with opportunities for growth One of only four national f
Slide 120: A national operator of scale in health, beauty and wellbeing
A national operator of scale in health, beauty and wellbeing API has significant reach across Australia with its extensive distribution network and retail footprint API network 1 Priceline 466 21 Company-owned 90 96 Franchise 376 48 13 Clear Skincare Clinics 93 4 Distribution Centres1 7 38 163 26 11
Slide 121: Pharmacy Distribution
Pharmacy Distribution Overview • API’s largest division by revenue, generating $3.0 billion of revenue in FY211 • As a full-line national wholesaler under the CSO2, API supplies the full range of PBS3 medicines to any pharmacy in Australia, usually within 24 hours Photo of new DC • API plays a criti
Slide 122: Priceline
Priceline Overview • Pharmacies are owned and operated by franchise partners, while company-owned stores offer health, beauty & wellness retail products only • Franchise partners benefit from the strong Priceline brand and offering ‒ This includes the Sister Club loyalty program, access to a wide pr
Slide 123: Clear Skincare Clinics
Clear Skincare Clinics Overview • Offers a wide range of skincare treatments, cosmetic injectables and laser hair removal services, as well as own brand skincare products • Specialist non-surgical services are provided by registered nurses and trained professionals ‒ The team is highly trained with
Slide 124: Building a leader in health, beauty and wellbeing through API
Building a leader in health, beauty and wellbeing through API Current focus is on integration activities, listening to and learning from API team members Three initial areas of focus for API as we look to build a leader in health, beauty and wellbeing: 1 2 3 Strengthen the core Data and digital New
Slide 125: Pharmacies and Priceline in the community
Pharmacies and Priceline in the community Opportunities for Priceline’s pharmacist partners to play a growing role in preventative health and wellness Pharmacies play a Pharmacies are a A growing role in The pharmacy model critical and trusted highly accessible preventative health & promotes high le
Slide 126: Key messages and outlook
Key messages and outlook • Attractive fundamentals and long-term growth potential in healthcare • Opportunities for Wesfarmers Health to play a valuable role in improving the health outcomes of Australians and reducing the cost of healthcare through improved access to services • API provides opportu
Slide 127: Q&A Wesfarmers Health
Q&A Wesfarmers Health Emily Amos Edward Bostock Managing Director, Wesfarmers Health Chief Financial Officer, Wesfarmers Health
Slide 128: Wesfarmers
0s Wesfarmers