Wesfarmers Limited · ASX:WES
Wesfarmers — Investor Presentation (March 2017)
26 slides from Wesfarmers's investor presentation, Mar 13, 2017
Slide 1: Bunnings UK & Ireland Investor Tour Presentation (ASX announcement)
13 March 2017 The Manager Company Announcements Office Australia Securities Exchange Dear Sir, BUNNINGS UK & IRELAND INVESTOR TOUR PRESENTATION Following is a presentation to be given at an investor briefing on the Bunnings UK & Ireland business to be held on Monday, 13 March 2017 at 11:00am GMT / 7
Slide 2: Bunnings UK & Ireland Investor Tour
Bunnings UK & Ireland Investor Tour 13 March 2017
Slide 3: Agenda
Agenda 11:00am – 11:15am Register & welcome 11:15am – 12:15pm Presentation, Q&A PJ Davis 12:15pm – 12:50pm Lunch 12:50pm – 3:50pm Site visits 2017 BUKI Investor Tour | 2
Slide 4: Introduction
1. Introduction 2. Acquisition recap 3. Phase 1 2017 BUKI Investor Tour | 3
Slide 5: BUKI leadership team
BUKI leadership team Managing Director PJ Davis General General General General General General Finance Manager Manager Manager Manager Manager Manager Director Store Dev HR Merchandising Property Operations Marketing Rodney Boys Shane Mealor Martina Kay Craig Castelino Andrew Mason Craig Wallace Ke
Slide 6: Acquisition recap
1. Introduction 2. Acquisition recap 3. Phase 1 2017 BUKI Investor Tour | 5
Slide 7: Long-term value creation
Long-term value creation LONG-TERM VALUE CREATION 1. A winning 2. An engaged, 3. Business 4. Sustainable offer to focused & behaviour returns customers committed that builds team trust 2017 BUKI Investor Tour | 6
Slide 8: UK home improvement & garden market
UK home improvement & garden market Market size1 Market overview • Market size estimated to be £38 billion1 (consumer & trade) £38b¹ 1.6x • Highly fragmented with top two players having < 15% market £38b £23b share competing across a variety of formats • UK market forecast to grow at a similar rate
Slide 9: Fragmented market creates opportunity
Fragmented market creates opportunity • Discounters entering home improvement & Discounters & non-specialists garden market growing strongly • Space vacated by DIY • Homebase announced plans to close 80 stores (October 2014) ‘DIY’ • B&Q announced plans to close 60 stores (March 2015) • Product & for
Slide 10: Addressable market wider than home improvement & garden
Addressable market wider than home improvement & garden Wide range of products with everyday use in repairs, refits, maintenance, construction, business…. toilets in every building light fittings everywhere 2017 BUKI Investor Tour | 9
Slide 11: Attractive market entry opportunity
Attractive market entry opportunity LOWEST PRICES Premium pricing Everyday Lowest Prices High-low promotional activity Known to be overpriced WIDEST RANGE Range authority in paint & garden Widest range Home brand focus World leading brands Home furnishing consumer Consumer & trade Low in-stock posit
Slide 12: Acquisition timeline
Acquisition timeline Phase 1 Phase 2 Phase 3 • Combine essential local • Retail basics focus elements with best of Bunnings • Invest in team to build new business • Invest in core business • Warehouse format activities • Lowest prices, wider choice with trusted brands, great service • Develop pilots
Slide 13: Phase 1
1. Introduction 2. Acquisition recap 3. Phase 1 2017 BUKI Investor Tour | 12
Slide 14: Build strong business foundations
Inside phase 1 Build strong business foundations Drive stronger operating Combining the best of British 1. Retail basics focus … performance in Homebase & the best of Bunnings • Higher stock weights • Wider assortments 2. Invest in team 3. Invest in core business Successful pilots an absolute activi
Slide 15: Inside phase 1 – retail basics
Build strong business Inside phase 1 – retail basics foundations • Significant disruption across all areas of the business • Widened product choice & increased stock depth – Stock investment of ~£130 million • Repositioned Homebase: Always Low Prices – Rapidly moved to end high-low discounting – Mov
Slide 16: Inside phase 1 – leading brands widely available
Build strong business Inside phase 1 – leading brands widely available foundations House brands 2017 BUKI Investor Tour | 15
Slide 17: Inside phase 1 – invest in team
Build strong business Inside phase 1 – invest in team foundations • First steps of cultural change are well progressed – Safety focus – Engagement & retention – Genuine respect & care, building trust – Building high performance culture • Over 67,000 hours training (5 hours on avg. per team member) •
Slide 18: Inside phase 1 – invest in core business activities
Build strong business Inside phase 1 – invest in core business activities foundations • Exited all non-core products – Soft furnishings & indoor furniture • Solid progress on move to core ranges of home improvement & garden • Investing in store network – Securing tenure on priority sites – Commenced
Slide 19: Inside phase 1 – separation
Build strong business Inside phase 1 – separation foundations • Separation well advanced – Created new functions for property, legal & compliance, HR, global sourcing & tax – Relocated 500+ Store Support Centre team – Good progress on standalone solutions for Home Delivery, Contact Centre & Informat
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Slide 21: Bunnings Warehouse pilots
Bunnings Warehouse pilots Bunnings Warehouse pilot opened in St Albans – Store stripped, mezzanine removed – New lighting & floor finish – Built Bunnings-style landscape canopy – Reconfigured entrance & goods inward Three more pilots in FY17 – Strong supplier support – Widest range of trusted brands
Slide 22: Digital engagement
Digital engagement Taking first steps towards Bunnings UK & Ireland digital eco-system • “Research online, purchase offline” ‒ Product & project knowledge ‒ How-to ‒ Inspiration ‒ Engagement • Long-term process to build deeper customer involvement & engagement ‒ Pre & post-shop + services ‒ Online +
Slide 23: Summary
Summary PJ Davis BUNNINGS BUNNINGS TRADE’ H@MEBASE
Slide 24: Continue to progress acquisition agenda
Continue to progress acquisition agenda Phase 1 Phase 2 Phase 3 • Combine essential local • Retail basics focus elements with best of Bunnings • Invest in team to build new business • Invest in core business • Warehouse format activities • Lowest prices, wider choice with trusted brands, great servi
Slide 25: Questions
Questions PJ Davis BUNNINGS BUNNINGS TRADE’ H@MEBASE
Slide 26: Wesfarmers
0s Wesfarmers