Wesfarmers Limited · ASX:WES
Wesfarmers — Investor Presentation (April 2008)
20 slides from Wesfarmers's investor presentation, Apr 24, 2008
Slide 1: ASX cover letter for co-manager and retail broker presentation
For personal use only 24 April 2008 The Manager Company Announcements Office Australian Securities Exchange Dear Sir, PRESENTATION TO BE GIVEN AT CO-MANAGER AND RETAIL BROKER PRESENTATIONS Following is a presentation that is to be given at co-manager and retail broker presentations during the week b
Slide 2: 1 for 8 Pro-Rata Entitlement Offer to complete refinancing
[DRAFT] For personal use only 1 for 8 Pro-Rata Entitlement Offer to complete refinancing Co-Manager and retail broker presentation April 2008 1
Slide 3: Disclaimer
Disclaimer For personal use only 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 retail shareholders of Wesfarmers in a prospectus lodged with the Australian Securities and Invest
Slide 4: Contents
Contents For personal use only 1 Executive Summary 4 2 Overview of the Offer 5 3 Rationale 7 4 Investment Highlights 10 5 Offer Details 16 3
Slide 5: 1. Executive Summary
1. Executive Summary For personal use only • 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
2. Overview of the Offer For personal use only 1 for 8 Accelerated Pro-Rata 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 to theoretical
Slide 7: Strong institutional investor support
2. Overview of the Offer For personal use only Strong institutional investor support • Institutional Entitlement Offer has raised ~$940 million (or ~36% of the total Offer) • Approximately 96% of the Institutional Entitlement Offer taken-up by Institutional Shareholders • The Joint Lead Managers hav
Slide 8: 3. Rationale: Refinancing Programme Complete
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 9: 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 deb
Slide 10: 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 11: 4. Investment Highlights
4. Investment Highlights For personal use only • 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 12: Track record of strong financial performance
4. Investment Highlights Track record of strong financial performance1 For personal use only 1. Past performance and results are not indicative of future performance and results, and should not be relied upon in making an investment decision 11
Slide 13: Track record: dividends and return on equity
4. Investment Highlights Track record of strong financial performance1 For personal use only Dividends per ordinary share over the last 10 years financial (cents) Return on equity over the last 10 financial years (%)2 1. Past performance and results are not indicative of future performance and resul
Slide 14: 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 15: 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 16: Leading Businesses: Non-Retail
4. Investment Highlights Leading Businesses • Wesfarmers’ retail businesses are complemented by a portfolio of quality For personal use only diversified businesses Wesfarmers Non-Retail Businesses Growth Opportunities and Quality Assets Trading Update Strategies • Record FY09 metallurgical • Key sup
Slide 17: 5. Offer Details
5. Offer Details • 1 for 8 accelerated pro-rata entitlement offer to raise approximately $2.5 For personal use only Offer Size 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 18: 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 19: Timetable: Key Dates
5. Offer Details Timetable For personal use only Key Dates Record Date 24 April 2008 (7:00pm) Ordinary Shares and WPPS re-commence trading 28 April 2008 Retail Offer period 28 April – 20 May 2008 Prospectus dispatched to Eligible Retail Shareholders Early May 2008 Retail Entitlement Offer closes 20
Slide 20: Questions
For personal use only Questions 19