Slide 1: 2011 Full-Year Results Supplementary Information
2011 Full-Year Results Supplementary Information (To be read in conjunction with the Full-Year Results Teleconference presentation) 18 August 2011
Slide 2: Presentation outline
2 Presentation outline Item Page 1 Coles 3 2 Home Improvement & Office Supplies 7 3 Target 13 4 Kmart 17 5 Insurance 21 6 Resources 29 7 Chemicals, Energy & Fertilisers 41 8 Industrial & Safety 47 9 Other Business & Capital Management 50
Slide 3: Coles
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Slide 4: Coles network
Coles network Coles 4 As at 30 June 2011 Selling Area 6 7 10 Supermarkets (sqm) 1,599,271 Liquor (sqm) – ex 184,442 hotels 147 214 77 82 100 6 111 66 52 30 6 42 246 258 4 210 166 193 176 741 Supermarkets 15 15 785 Liquor stores 93 Hotels 620 Convenience
Slide 5: Store network movements
Coles 5 Store network movements Open at Re- Open at 1 30 June 2010 Opened Closed Branded 30 June 2011 Supermarkets Coles 691 11 12 6 696 Bi-Lo 51 - - (6) 45 Total Supermarkets 742 11 12 - 741 Liquor 1st Choice 73 4 1 - 76 Vintage Cellars 78 10 3 (2) 83 Liquorland 615 26 18 3 626 Hotels 96 1 3 (1) 93
Slide 6: Revenue reconciliation
Coles 6 Revenue reconciliation Year ended 30 June 2011 2010 ($m) Food & Convenience Total Food & Convenience Total Liquor Liquor Segment revenue1 (Gregorian) 25,257 6,791 32,048 23,731 6,247 29,978 Less: Other revenue 146 15 161 118 16 134 Headline sales (Gregorian) 25,111 6,776 31,887 23,613 6,231
Slide 7: Home Improvement & Office Supplies
Home Improvement & Office Supplies
Slide 8: Bunnings network
Bunnings network Home Improvement & Office Supplies 8 As at 30 June 2011 194 Warehouse stores 59 Smaller format stores 2 36 Trade Centres 31 6 12 24 7 3 9 3 2 58 17 6 15 24 2 48 1 9 5 2 1 2
Slide 9: Officeworks & Harris Tech. network
Officeworks & Harris Tech. network Home Improvement & Office Supplies 9 As at 30 June 2011 Retail Stores 135 Officeworks 4 Harris Technology 1 Business 26 1 1 12 1 4 Fulfilment Centres 8 3 Service Centres 45 2 1 1 Print Hub 2 1 41 1 1 1 2
Slide 10: Store network movements
Home Improvement & 10 Office Supplies Store network movements Under Open at Open at construction at 30 June 2010 Opened Closed 30 June 2011 30 June 2011 Home Improvement Bunnings Warehouse 184 11 1 194 9 Bunnings smaller formats 58 8 7 59 - Bunnings Trade Centres 29 8 1 36 2 Office Supplies Officewo
Slide 11: Bunnings – Merchandising
Bunnings – Merchandising Home Improvement & Office Supplies 11 Range Reset Project Update • Stronger support from world’s leading & Australia’s most trusted brands • Widest range delivered better than ever Builders Kitchens & Plumbing Decorator
Slide 12: Bunnings – Merchandising
Bunnings – Merchandising Home Improvement & Office Supplies 12 Range Reset Project Update • Stronger support from world’s leading & Australia’s most trusted brands • Widest range delivered better than ever Tools Electrical Garden Lifestyles
Slide 13: Target
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Slide 14: Target network
Target network Target 14 As at 30 June 2011 3 59 31 26 98 69 291 Target stores (incl 119 Target Country) 5
Slide 15: Store network movements
Target 15 Store network movements Under Open at Open at construction at 30 June 2010 Opened Closed 30 June 2011 30 June 2011 Target 171 1 - 172 2 Target Country 119 2 2 119 - • Two Target Country stores closed were replaced by a larger store opened in Bowral • Other stores opened include a Target st
Slide 16: Revenue reconciliation
Target 16 Revenue reconciliation Year ended 30 June ($m) 2011 2010 Segment revenue (Gregorian) 3,782 3,825 Less: Non sales revenue - - Headline sales (Gregorian) 3,782 3,825 Less: Gregorian adjustment 11 9 Headline sales revenue (Retail1) 3,771 3,816 1 Retail period relates to the 52 week period 27
Slide 17: Kmart
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Slide 18: Kmart network
Kmart network Kmart 18 As at 30 June 2011 187 Kmart stores 251 KTAS centres 2 3 36 54 21 28 13 18 51 71 12 44 72 5 5 3
Slide 19: Store network movements
Kmart 19 Store network movements Under Open at Open at construction at 30 June 2010 Opened Closed 30 June 2011 30 June 2011 Kmart 186 1 - 187 - Kmart Tyre & Auto 251 6 6 251 3
Slide 20: Revenue reconciliation
Kmart 20 Revenue reconciliation Year ended 30 June ($m) 2011 2010 Segment revenue (Gregorian) 4,036 4,019 Less: Non sales revenue 2 2 Headline sales (Gregorian) 4,034 4,017 Less: Gregorian adjustment 14 13 Headline sales revenue (Retail1) 4,020 4,004 1 Retail period relates to the 52 week period 28
Slide 21: Insurance
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Slide 22: Insurance business overview
Insurance 22 Insurance business overview Group/ Company Wesfarmers Insurance Australian New Zealand Premium Operations Broking Underwriting Underwriting Funding Lumley WI Business Affinity & Lumley WFI Lumley Business AUS NZ UK Premium Units Direct Solutions Funding Brands
Slide 23: Geographical presence
Geographical presence Insurance 23 As at 30 June 2011 3 1 UK 4 3 14 5 20 1 2 1 1 13 7 5 17 17 7 19 6 Lumley Insurance (Australia) 14 2 Lumley General New Zealand 11 10 WFI 85 2 4 1 OAMPS1 31 2 Crombie Lockwood 27 1 OAMPS New Caledonia location not shown
Slide 24: Underwriting performance summary
Insurance 24 Underwriting performance summary Year ended 30 June ($m) 2011 2010 % Gross Written Premium 1,426 1,347 5.9 Net Earned Premium 1,062 1,035 2.6 Net Claims (773) (666) 16.1 Net Commission & Expenses (388) (348) 11.5 Underwriting Result (99) 22 n.m. Insurance Margin (51) 55 n.m. EBITA (29)
Slide 25: Broking performance summary
Insurance 25 Broking performance summary Year ended 30 June ($m) 2011 20101 % Commission & Fee Income 201 193 4.1 Other Income 24 20 20.0 Total Income 225 213 5.6 Expenses (163) (154) 5.8 EBITA 62 59 5.1 EBIT 52 50 4.0 EBITA Margin (%) 27.5 27.8 1 2010 comparatives have been adjusted for a $9m recla
Slide 26: Normalised EBIT
Normalised EBIT Insurance 26 Year ended 30 June 2011 ($m) 190 170 150 32 130 110 39 90 162 70 71 50 30 10 20 FY11 reported EBIT (1) Net event claims Reinsurance Reinsurance LAT FY11 Normalised EBIT above allowances reinstatement costs adjustment (2) 1 EBIT includes $10m of intangibles amortisation.
Slide 27: Underwriting KPIs
Insurance 27 Underwriting KPIs Year ended 30 June (%) 2011 2010 % pt Gross Earned Loss Ratio 114.8 69.5 45.3 Net Earned Loss Ratio 72.8 64.3 8.5 Reinsurance Expenses (% GEP) 20.7 22.3 (1.6) Exchange Commission (% RI excl XOL) 25.2 24.3 0.9 Commission Expense (% GWP) 12.5 13.5 (1.0) Total Earned Expe
Slide 28: Gross written premium (underwriting)
Insurance 28 Gross written premium (underwriting) Liability 13% Marine 4% Engineering 5% Personal 20% Total: $1,426m Commercial Motor Crop 29% 2% Commercial 27%
Slide 29: Resources
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Slide 30: Resources environment
Resources 30 Resources environment • Global demand for coal – Continuing growth from emerging & developing economies – Global steel production has recovered to above pre-GFC levels – Temporary impact of earthquake & tsunami on Japanese consumption • Supply issues – Queensland metallurgical coal prod
Slide 31: Australian coal market prices
Resources 31 Australian coal market prices Australian steaming coal prices Australian hard coking coal prices US$/Tonne (Nominal) FOB Australia (annual verse spot) US$/Tonne (Nominal) FOB Australia (Quarterly price to June 2011 verse spot) 200 400 350 150 300 250 100 200 150 50 100 50 0 0 2003 2004
Slide 32: Curragh export metallurgical sales
Resources 32 Curragh export metallurgical sales Hard Hard Semi Hard 46 % Semi Hard 41% 22 % 23% PCI PCI 36% 32 % 2010/11 Actual 2011/12 Forecast 5.3 million tonnes 6.8 – 7.2 million tonnes
Slide 33: Coal – production volumes
Resources 33 Coal – production volumes Year Ended Beneficial ('000 tonnes) Mine Coal Type Interest Jun 2011 Jun 2010 Curragh, QLD 100% Metallurgical 5,383 6,613 Steaming 2,470 2,470 Premier, WA 100% Steaming 3,503 2,781 Bengalla, NSW1 40% Steaming 2,243 2,243 Total1 13,599 14,107 1 Wesfarmers attrib
Slide 34: Coal – sales volumes
Resources 34 Coal – sales volumes Year Ended Beneficial ('000 tonnes) Mine Coal Type Interest Jun 2011 Jun 2010 Curragh, QLD1 100% Metallurgical 5,334 6,633 Steaming 2,568 2,463 Premier, WA 100% Steaming 3,558 2,593 Bengalla, NSW2 40% Steaming 2,410 2,111 Total2 13,870 13,800 1 Curragh metallurgical
Slide 35: Curragh focus on cost control
Resources 35 Curragh focus on cost control • Mine cash costs ($/t) increased 46% FY2011 vs FY2010, due to one-off flood & groundwater impacts – Subject to more normal conditions mine cash costs ($/t) are expected to fall in FY2012 • Continuing cost control programs in place • Ongoing strategies incl
Slide 36: Current hedging profile
Current hedging profile Resources 36 As at 30 June 2011 Curragh Bengalla Current US$ Average Current US$ Average Year end Year end sold forward A$ / US$ sold forward A$ / US$ 30 Jun 30 Jun (US$m) hedge rate (US$m) hedge rate 2012 720 0.86 2012 117 0.85 2013 491 0.82 2013 88 0.84 2014 269 0.81 2014 5
Slide 37: Curragh mine expansion
Resources 37 Curragh mine expansion • Wesfarmers approved in November 2009 the investment of $286 million to expand Curragh metallurgical coal exports to 8.0 – 8.5mtpa • Curragh has rail & export capacity contracted at 8.5mtpa • Curragh has forward-sold the additional production to existing & new lo
Slide 38: Curragh expansion study to 10mtpa
Resources 38 Curragh expansion study to 10mtpa • Feasibility study (FS) commenced – Mining & Coal Handling Preparation Plant studies • Potential to expand Curragh to 10mtpa metallurgical exports from FY2014 – Wiggins Island commissioning – Additional rail capacity required – Potential for additional
Slide 39: Bengalla expansion study
Resources 39 Bengalla expansion study • Expansion to 10.7mtpa ROM tonnes through two stages – Stage One 9.3mtpa ROM – Stage Two 10.7mtpa ROM • Stage One approved – November 2010 with construction underway • Additional port capacity secured • Phase one completion targeted for 1Q CY2012 • Stage Two fe
Slide 40: Potential new taxes (MRRT & Carbon)
Potential new taxes Resources 40 (MRRT & Carbon) • Both proposed to apply from 1 July 2012, subject to passage through parliament • MRRT – Federal Government Exposure Draft released June 2011 • Carbon tax – Federal Government announcement July 2011 of fixed carbon price for first three years startin
Slide 41: Chemicals, Energy & Fertilisers
Chemicals, Energy & Fertilisers
Slide 42: Fertiliser sales
Chemicals, Energy 42 & Fertilisers Fertiliser sales kt 1,200 1,000 800 739 670 813 589 600 612 649 610 513 400 200 381 370 387 249 289 264 244 226 0 2004 2005 2006 2007 2008 2009 2010 2011 2nd Half 1st Half Volumes 6.5% lower than previous year
Slide 43: Global fertiliser pricing
Chemicals, Energy 43 & Fertilisers Global fertiliser pricing US$/t 1,400 1,200 1,000 800 600 400 200 0 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Urea (FOB Middle East) DAP (FOB US Gulf) Ammonia (FOB Middle East) Prices in U
Slide 44: PVC-VCM Spread
Chemicals, Energy 44 & Fertilisers PVC-VCM Spread The ‘PVC – VCM Spread’ refers to the difference between the Asian PVC selling price & VCM input cost Source: Harriman Front Page Asian mid points A$ Spread at long-term historical low
Slide 45: World LPG prices – Saudi CP
Chemicals, Energy 45 World LPG prices – Saudi CP & Fertilisers US$/tonne Propane 1,000 900 800 700 600 500 400 300 200 100 0 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 US$ LPG prices increase over the year, partially offset by strong A$
Slide 46: LPG production
Chemicals, Energy 46 & Fertilisers LPG production kt Ave t/TJ 200 1.2 1.1 150 1.0 0.9 100 0.8 0.7 50 0.6 0 0.5 2008 2009 2010 2011 H1 WLPG production (kt) H2 WLPG production (kt) H1 average LPG content (t/TJ) FY average LPG content (t/TJ) Production lower than previous year due to reduced content
Slide 47: Industrial & Safety
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Slide 48: Business portfolio
Industrial & Safety 48 Business portfolio Australia New Zealand Generalists ‘One stop shop’ Safety Specialists Industrial Specialists
Slide 49: Distribution network
Distribution network Industrial & Safety 49 As at 30 June 2011 219 industrial & safety branches &121 gas distribution points Australia No. 71 44 2 3 24 1 16 12 17 18 9 1 8 8 10 6 4 1 45 1 111 4 3 5 2 17 7 New Zealand No. 1 20 4 4 27 5 32 24 27 24 9 7 11 5 3 11 1 2 1 1 1 3 13 1 Includes 10 Coregas ow
Slide 50: Other Business & Capital Management
Other Business & Capital Management
Slide 51: Flood & storm events – retail divisions
51 Flood & storm events – retail divisions • Group Retail divisions’ earnings affected by severe flood & storm events, including Cyclone Yasi, & Christchurch earthquakes • Combined earnings impact of property damage & business interruption estimated to be ~ $100 million – Asset writedowns recognised
Slide 52: Overview of the Group balance sheet
52 Overview of the Group balance sheet ($m) FY2010 FY2011 Commentary Inventories 4,658 4,987 Trade & other payables (4,621) (5,090) Receivables & prepayments1 1,834 2,263 Detailed working capital discussion provided on slide 53 Other 237 264 Net working capital 2,108 2,424 Net insurance liabilities1
Slide 53: Balance sheet - working capital
53 Balance sheet - working capital ($m) FY2010 FY2011 Commentary Inventories 4,658 4,987 • Inventory increased by $329 million (FY2011 v FY2010) Home Improvement: Strong network expansion & increased sales Coles: Safety stock build ahead of supply system change (Easy Warehousing), increased centrali
Slide 54: For all the latest news visit www.wesfarmers.com.au
For all the latest news visit www.wesfarmers.com.au