Wesfarmers Limited · ASX:WES
Wesfarmers — Debt Investor Presentation (2021)
23 slides from Wesfarmers's debt investor presentation, 2021
Slide 1: 2021 Full-year results debt investor update
2021 Full-year results debt investor update
Slide 2: Group performance overview
Group performance overview 7 Wesfarmers
Slide 3: Maintaining a long-term focus, consistent with our values
Maintaining a long-term focus, consistent with our values Anticipating the needs of our Looking after our team Engaging fairly with our customers and delivering members and providing a safe, suppliers, and sourcing competitive goods and services fulfilling work environment ethically and sustainably
Slide 4: Financial overview
Financial overview Year ended 30 June ($m) 2021 2020 Var % Results from continuing operations excluding significant items Revenue 33,941 30,846 10.0 EBIT (after interest on lease liabilities) 3,550 2,942 20.7 NPAT 2,421 2,083 16.2 Basic earnings per share (cps) 214.1 184.2 16.2 Results including dis
Slide 5: Divisional sales performance
Divisional sales performance Sales performance ($m) 2020 Year ended 30 June 2021 Retail sales GTV1 Revenue Total sales +12.4% +12.0% (3.7%) +8.6% +41.0% +2.9% +6.3% growth Comp sales +11.9% +7.8% +13.3% growth 16,861 14,996 6,068 6,795 2,692 2,592 2,775 3,014 2,085 2,146 973 1,745 1,855 632 Bunnings
Slide 6: Divisional earnings
Divisional earnings EBT1 ($m) Year ended 30 June 2021 2020 Var (%) % of divisional EBT Bunnings 2,185 1,826 19.7 62% Kmart Group2 693 410 69.0 19% Officeworks 212 197 7.6 6% WesCEF3 384 394 (2.5) 11% Industrial and Safety4 70 39 79.5 2% 1. Excludes significant items. 2. 2021 excludes $59m of pre-tax
Slide 7: Operational highlights
Operational highlights • Strong sales growth across all major trading regions and product categories, with particularly strong growth in outdoor living • Result reflects execution of strategic agenda and the increased value and relevance of offer for consumer and commercial customers • Kmart and Tar
Slide 8: Renewed priorities to support sustainable long-term growth
Renewed priorities to support sustainable long-term growth Develop a market-leading data Invest in platforms for Accelerate the pace of and digital ecosystem long-term growth continuous improvement • Leverage scale and unique • Follows the repositioning of the • Maintain the operational agility asse
Slide 9: Working capital and cash flow
Working capital and cash flow Year ended 30 June ($m) 2021 2020 • Solid operating cash flow of $3,383m Working capital cash movement • Divisional cash generation of 90%1 Receivables and prepayments (244) (66) – Strong divisional earnings growth Inventory (665) 443 Payables 214 346 – Normalisation of
Slide 10: Capital expenditure
Capital expenditure • Gross capital expenditure of $896m, up 3.3% on prior year Year ended 30 June1 ($m) 2021 2020 Var % – Increased data and digital investment Bunnings 445 511 (12.9) – Successful conversion of 86 Target stores to Kmart stores, including 31 large formats Kmart Group 185 142 30.3 –
Slide 11: Trading update and outlook
Trading update and outlook 7 Wesfarmers
Slide 12: Trading update and current conditions
Trading update and current conditions Total sales 2Y total sales Online 2022 financial year to date growth growth1 penetration (%) (%) (% sales) Bunnings (7 weeks) (4.7) 24.4 3.3 Kmart and Target (8 weeks) (14.3)2 (12.3)2 K: 17.2 | T: 32.0 Catch GTV (7 weeks) (8.5) 112.5 100.0 Officeworks (7 weeks)
Slide 13: Outlook
Outlook • Wesfarmers’ strong balance sheet and portfolio of market-leading businesses make it well positioned to deliver satisfactory shareholder returns over the long term • The Group will continue to increase its investment in key strategic priorities, notwithstanding the likelihood of further nea
Slide 14: Debt management
Debt management Wesfarmers
Slide 15: Maintaining strong credit ratings and balance sheet
Maintaining strong credit ratings and balance sheet • Strong credit ratings: Moody’s A3 (stable outlook); Standard and Poor’s A- (stable outlook) • Maintaining prudent capital structure and strong credit rating is important to Wesfarmers • Continued strength in Group’s debt position – Strong liquidi
Slide 16: Management of lease portfolio
Management of lease portfolio • Lease liabilities totalled $7.1b and ($m) FY21 FY20 represented 73% of Group fixed financial Bunnings 3,738 3,727 obligations as at 30 June 2021 Kmart Group 2,817 2,943 • Store closure and conversion program within Target supported a reduction of its lease Officeworks
Slide 17: Pro-active debt management
Pro-active debt management • Continued focus on maturity profile and maintaining liquidity headroom provided by bilateral bank facilities – In response to COVID-19, increased committed bank facilities by $1.95b in May 2020 (matures in May 2022) – Repaid A$500m of domestic bonds in November 2020 – On
Slide 18: Strategies to build trust and drive long-term value creation
Strategies to build trust and drive long-term value creation Climate and environment Ethical sourcing and human rights Development, diversity and inclusion Net zero Scope 1 and 2 emissions Suppliers participating in the Group’s Aboriginal and Torres Strait Islander ambitions for audit program1 team
Slide 19: Sustainable finance
Sustainable finance • Established Sustainable Finance Framework; sets out the process by which Wesfarmers intends to issue and manage Sustainable Finance on an ongoing basis and contemplates Sustainability-Linked Bond (SLB) and Use of Proceeds Bond issues: – https://www.wesfarmers.com.au/investor-ce
Slide 20: Debt capital market funding sources
Debt capital market funding sources • Issued $1.0b in sustainability-linked bonds, with the interest rates on the bonds linked to progress against specific renewable energy and emissions performance targets – Australian first, met with strong demand – Comprised of a $650m seven-year bond at 1.94% an
Slide 21: Dividends & capital management
Dividends & capital management • Dividend policy takes into account through the cycle free cash flow requirements and debt refinancing • Fully-franked final ordinary dividend of $0.90 per share – Reflects strong underlying NPAT result – Takes into account available franking credits, strong balance s
Slide 22: Questions
Questions
Slide 23: Wesfarmers
We Wesfarmers