Wesfarmers Limited · ASX:WES
Wesfarmers — Debt Investor Presentation (2025)
21 slides from Wesfarmers's debt investor presentation, 2025
Slide 1: 2025 Half-Year Results Debt Investor Update
2025 HALF-YEAR RESULTS Debt Investor Update
Slide 2: Group Performance Overview
GROUP PERFORMANCE OVERVIEW 7 Wesfarmers
Slide 3: Wesfarmers Way
Wesfarmers Way Wesfarmers’ primary objective Anticipating the needs of our Looking after our team is to deliver a satisfactory customers and delivering members and providing a safe, return to shareholders. We competitive goods and services fulfilling work environment believe it is only possible to a
Slide 4: 2025 Half-year highlights
2025 Half-year highlights Maintained focus on driving shareholder returns over the long term Revenue NPAT up 3.6% to up 2.9% to Results highlight strong Investing to strengthen $23.5b $1.5b execution across the businesses and advance Group’s businesses growth projects • Invested in even greater valu
Slide 5: Divisional highlights
Divisional highlights Bunnings Kmart Group WesCEF Officeworks Sales Earnings1 Sales Earnings Revenue Earnings Sales Earnings $10.3b $1,323m $6.2b $644m $1.2b $177m $1.8b $87m ↑ 3.1% ↑ 3.2% ↑ 2.0% ↑ 7.2% ↑ 9.5% ↑ 2.9% ↑ 4.7% ↑ 1.2% • Performance highlights the • Strong value credentials and unique •
Slide 6: Recent portfolio actions reflect the focus on shareholder returns
Recent portfolio actions reflect the focus on shareholder returns Sale of Coregas Catch wind down and transition Sale for $770m delivers value for shareholders Eliminates the losses associated with Catch Expected to complete mid-CY251 Transfer of FCs2 to strengthen Kmart Group’s online operations Sa
Slide 7: Focus on long-term value, consistent with our objective
Focus on PEOPLE long-term value, 1H25 consistent with 9.9 total recordable injury our objective frequency rate (TRIFR) and a continued focus on safety 3.9% Indigenous employment2, maintaining employment parity CLIMATE AND COMMUNITIES AND ENVIRONMENT SUPPLIERS 1H25 43% 1H25 women in Board and 2.5% Le
Slide 8: Working capital and cash flow
Working capital and cash flow • Divisional cash realisation remained strong at 108%1, and was 113%1 for the NET WORKING CAPITAL CASH MOVEMENT retail divisions Half-year end 31 December ($m) 2024 2023 • Divisional operating cash flows decreased 6.3% Receivables and prepayments 165 121 – The decline r
Slide 9: Capital expenditure
Capital expenditure • Gross capital expenditure increased 2.9% to $594m CAPITAL EXPENDITURE – Higher spend on new store and expansion projects in Bunnings, partially Half-year end 31 December1 ($m) 2024 2023 Var % offset by reduced capex in WesCEF, following the completion of Bunnings Group 234 135
Slide 10: Group outlook
Group outlook • Wesfarmers remains focused • The Group’s retail businesses • The performance of the Group’s • Domestic cost pressures likely to on long-term value creation are expected to benefit from their industrial businesses remains persist with higher labour, energy, and continues to invest to
Slide 11: Balance Sheet and Debt Management
BALANCE SHEET AND DEBT MANAGEMENT
Slide 12: Strong and resilient balance sheet
Strong and resilient balance sheet Key principles NET FINANCIAL DEBT ($B) 1 • Maintaining a prudent capital structure and strong credit rating is important to 6 Wesfarmers 5 • Strong credit ratings 4 – Moody’s A3 (stable outlook) 3 – S&P A- (stable outlook) 2 1 Half-year update 0 -1 • Maintained sig
Slide 13: Pro-active debt management
Pro-active debt management • Continued focus on optimising debt maturity profile and cost of funds through: DEBT MATURITY PROFILE1 $m – Extension of bilateral bank facilities to extend and spread out debt maturity profile 2,000 1,500 – Reduction of total available bank facilities to manage borrowing
Slide 14: Debt capital markets diversity
Debt capital markets diversity DCM GEOGRAPHICAL SOURCES1 DEBT BY TYPE1 46% 48% 54% 52% Capital Markets Sustainability-linked Financing Drawn Bank Facilities Other funding sources • Ongoing commitment to diversify funding sources, including the domestic and international debt capital markets • Austra
Slide 15: Sustainable finance update
Sustainable finance update March 2020 June 2021 October 2021 HY25 Update A$400m sustainability-linked loan A$1b sustainability-linked bond €600m sustainability-linked bond • Achieving proportional • Increasing the use of renewable electricity in the Group’s retail divisions (Bunnings Group, Kmart •
Slide 16: Management of lease portfolio
Management of lease portfolio • Lease liabilities totalled $6.6b and represented 61% of the Group’s fixed Lease liabilities ($m) 1H25 FY24 1H24 financial obligations as at 31 December 2024 Bunnings Group 3,555 3,402 3,610 • Average remaining committed lease term of 3.9 years (FY24: 4.0 years) Kmart
Slide 17: Dividends and capital management
Dividends and capital management Key principles SHAREHOLDER DISTRIBUTIONS1 • Dividend distributions determined based on franking credit availability, $/share current earnings, cash flows, future cash flow requirements and targeted credit metrics 5.00 • Focus is on maximising value of franking credit
Slide 18: Additional resources
Additional resources • Wesfarmers debt investor website https://www.wesfarmers.com.au/investor-centre/debt-investors • Wesfarmers sustainable finance website https://www.wesfarmers.com.au/investor-centre/debt-investors/sustainable-finance • Please email to the below address if you would like to be a
Slide 19: Glossary of terms (1 of 2)
Glossary of terms (1 of 2) Term AASB Australian Accounting Standards Board API Australian Pharmaceutical Industries Ltd b Billion Cash realisation ratio Operating cash flows as a percentage of net profit after tax, before depreciation and amortisation CO2e Carbon dioxide equivalent cps Cents per sha
Slide 20: Glossary of terms (2 of 2)
Glossary of terms (2 of 2) Term ktCO2e Kilotonnes of carbon dioxide equivalent LNG Liquefied natural gas LPG Liquefied petroleum gas m Million mw megawatt n.m. Not meaningful Interest-bearing loans and borrowings less cash at bank and on deposit and held in joint operation, net of cross-currency int
Slide 21: Wesfarmers
NY] Wesfarmers