Wesfarmers Limited · ASX:WES
Wesfarmers — Reg A Offering (April 2008)
18 slides from Wesfarmers's offering presentation, Apr 21, 2008
Slide 1: Cover letter: presentation to be given at investor roadshow, Sydney
For personal use only 21 April 2008 The Manager Company Announcements Office Australian Securities Exchange Dear Sir, PRESENTATION TO BE GIVEN AT AN INVESTOR ROADSHOW, SYDNEY Following is a presentation that is to be given at an investor roadshow in Sydney on 21 April 2008 regarding a 1 for 8 pro-ra
Slide 2: 1 for 8 Pro-Rata Entitlement Offer to Complete Refinancing
For personal use only [DRAFT] 1 for 8 Pro-Rata Entitlement Offer to Complete Refinancing 21 April 2008 1
Slide 3: Disclaimer
For personal use only Disclaimer The accelerated entitlements offer of new Wesfarmers ordinary shares (the Entitlement Offer) in Wesfarmers Limited (ABN 28 008 984 049) (Wesfarmers) is made: – to eligible institutional shareholders of Wesfarmers in an institutional offering memorandum distributed to
Slide 4: Contents
For personal use only Contents 1 Executive Summary 4 2 Overview of the Offer 5 3 Rationale 6 4 Investment Highlights 9 5 Offer Details 14 3
Slide 5: 1. Executive Summary
For personal use only 1. Executive Summary • Wesfarmers has funding commitments in place to refinance all of the outstanding Coles acquisition bridge facility – Fully underwritten 1 for 8 accelerated pro-rata entitlement offer to raise ~$2.5 billion – Bank commitments obtained to refinance the remai
Slide 6: 2. Overview of the Offer for Accelerated Pro-Rata Renounceable Entitlement Offer
For personal use only 2. Overview of the Offer 1 for 8 Accelerated Pro-Rata Renounceable Entitlement Offer • Raising ~$2.5 billion (9.8% of Wesfarmers existing market capitalisation as at 16 April 2008) • $29.00 Offer price – 21.6% discount to Wesfarmers share price at last close1 – 19.6% discount t
Slide 7: 3. Rationale
3. Rationale Refinancing Programme Complete For personal use only • Wesfarmers believes an equity raising is in the best interests of shareholders Funding • Fully underwritten entitlement offer 9 Certainty • Avoids locking in unfavourable long-term debt facilities • Brings gearing to lower end of ta
Slide 8: 3. Rationale: Refinancing Programme Complete
3. Rationale Refinancing Programme Complete For personal use only •Wesfarmers has funding commitments in place to refinance the $4.0 billion Coles acquisition bridge facilities $bn US Notes (5 year) ~ 0.7 – Completed 10 April 2008 Net proceeds from Entitlement Offer ~ 2.5 – Fully underwritten New de
Slide 9: 3. Rationale: Strengthened Financial Position
3. Rationale Strengthened Financial Position For personal use only • Strengthens Wesfarmers’ Pro-forma As at 31 balance sheet against a as at 31 $ million December backdrop of volatile debt December 2007 markets 20071 – Pro-forma gearing of 47.6% Cash at Bank 453 453 (ND/E) Total Assets 37,110 37,11
Slide 10: 4. Investment Highlights
For personal use only 4. Investment Highlights • Allows shareholders to increase their investment at an Attractive Offer Price of $29.00 per share AttractiveTerms Terms — 19.6% discount to theoretical ex-entitlements price • Fully franked dividends of at least $2.00 per share for the Access 2008 and
Slide 11: 4. Investment Highlights: Dividend Guidance
4. Investment Highlights Dividend Guidance For personal use only Dividend Guidance Maintained • Fully franked dividends of at least $2.00 per share in FY08 and FY09, subject to the availability of retained earnings and franking credits FY08 Final Dividend • New Wesfarmers Ordinary Shares issued unde
Slide 12: 4. Investment Highlights: Leading Businesses (Retail)
4. Investment Highlights Leading Businesses For personal use only • Wesfarmers has a strong portfolio of retail businesses Wesfarmers Retail Businesses Growth Opportunities and Trading Update Quality Assets Strategies (31 Dec 07 to 13 April 08) • Coles integration largely • Substantial value creatio
Slide 13: 4. Investment Highlights: Leading Businesses (Non-Retail)
4. Investment Highlights Leading Businesses For personal use only • Wesfarmers’ retail businesses are complemented by a portfolio of quality diversified businesses Wesfarmers Non-Retail Businesses Growth Opportunities and Quality Assets Trading Update Strategies • Record FY09 metallurgical • Key sup
Slide 14: 4. Investment Highlights: Investor Briefing Day
4. Investment Highlights Investor Briefing Day For personal use only • Further business updates provided at our Investor Briefing 22 April 2008 Investor Briefing Day Agenda Overview Richard Goyder/Gene Tilbrook Coles Integration Update Keith Gordon Divisional Presentations Coles Mick McMahon Home Im
Slide 15: 5. Offer Details
For personal use only 5. Offer Details • 1 for 8 accelerated pro-rata entitlement offer to raise approximately Offer Size $2.5 billion – Approximately 89 million New Wesfarmers Ordinary Shares to be issued • $29.00 per share Offer Price – 21.6% discount to Wesfarmers closing share price on 16 April
Slide 16: 5. Offer Details: WPPS
5. Offer Details WPPS For personal use only • Eligible holders of WPPS entitled to participate in the Offer on the same terms as eligible Wesfarmers ordinary shareholders – Entitled to subscribe for 1 New Wesfarmers Ordinary Share for every 8 WPPS held Adjustment to WPPS Terms • WPPS terms provide f
Slide 17: 5. Offer Details: Timetable
5. Offer Details Timetable For personal use only Key Dates Institutional Offer period 21-22 April 2008 Institutional Entitlement Bookbuild opens 23 April 2008 (11:00am AEST) Institutional Entitlement Bookbuild closes 24 April 2008 (12:00pm AEST) Record Date 24 April 2008 (7:00pm AEST) Ordinary Share
Slide 18: Questions
For personal use only Questions 17