Slide 1: Half Year Results Presentation
Slide 2: Presentation Outline
Presentation Outline = Opening Comments Michael Chaney Group Performance Richard Goyder Divisional Comments: Energy David Robb Hardware John Gillam insurance Bob Buckley Industrial & Safety Bob Denby Chemicals & Fertilisers Keith Gordon Other Businesses Gene Tilbrook Outlook Michael Chaney . 7005 Ha
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Slide 4: Performance Summary
Performance Summary Half Year Ended 31 December oo me o Fe Operating Revenue (ex. sale of Landmark) 3,786.2 4,064.8 7.4 Net Profit (before g/will ex. sale of Landmark) 338.5 335.4 (0.9) Goodwill Amortisation (41.7) (44.2) 6.0 Net Profit (after g/will ex. sale of Landmark) 296.8 291.2 (1.9) Net profi
Slide 5: Half Year ended December ($m) / 2004
Half Year ended 31 December ($m) / 2004 Hardware 208.7 230.4 10.4 Rural Operations 8.4 - Industrial & Safety 53.0 51.4 (3.0) *Excludes earnings from sale of Landmark . 7005 Half Year Result _ Le ee eee a a ea
Slide 6: Return on Shareholders' Funds
Return: on Shareholders: Funds —_ 664 (pre goodwill) - rolling 12 months to 31December 7 ee Ay, j ig NN —— Target * Excludes sale of Landmark 2005 Hall ven feu:
Slide 7: EPS, Cashflow & Dividend (Half Year)
EPS, Cashflow & Dividend (Half Year) (earnings, cashflow and dividend | per share) 120 - 2000 2001 2002 2003* 2004 MEPS (before goodwill amortisation)* Cashflow* & Dividend * Excludes sale of Landmark 2005 Halt ven feu:
Slide 8: Net Debt/Equity of 47.9% at December 2004
e¢ Net Debt /Equity of 47.9% at 31 December 2004 ¢ Capital return of $378m announced in December ¢ Post capital return gearing within target range . 2005 Hale Yeor Results” | | | | L L : L L L ys L L ys L L Q L L : L L c L L L L L ] L L ] L L
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Slide 10: Energy Performance Summary
8.7 Revenue 478.6 520.2 EBITA 115.1 126.7 10.1 _ 2005 Half Year Results oo 7 LI
Slide 11: Energy: Half Year Highlights
¢ Higher export coal prices ¢ Higher international LPG prices ¢ Continued development of Curragh North ¢ Commissioning of Cooper Pedy Power Station e Purchase of the Mobil LPG business in Tasmania . 2005 Hale Yeor Results” | | | | L L : L L L ys L L ys L L Q L L : L L c L L L L L ] L L ] L L
Slide 12: Energy Outlook
¢ Coal exports in 2004/05 constrained by logistics ¢ Curragh North development on track e Record coking coal prices ¢ Premier market development activities ¢ Commissioning of Hlsmelt air supply project ¢ WLPG post 2005 negotiations in final phase . 2005 Hale Yeor Results” | | | | L L : L L L ys L L
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Slide 14: Hardware Performance Summary
Half Year Ended 31 December ($m) 2003. += 2004s JF Revenue 1,993.1 2,135.5 7.1 EBITA 208.7 230.4 10.4 *Excludes property and other non-trading items _ 2005 Half Year Results Ll
Slide 15: Hardware: Half Year Highlights
¢ 11% cash sales growth Cash store on store growth around 7% ¢ Flat trade sales in tight market conditions ¢ Four new warehouses opened ¢ Solid progress on major strategies _ 2005 Half Year Results oo Lo
Slide 16: Hardware Outlook
"Hardware Outlok ¢ Continued cash sales growth - S$trong focus on retail drivers ¢ Tight and competitive trade market e« Busy network development agenda ¢ Ongoing improvements in business infrastructure _ 2005 Half Year Results oo Lo
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Slide 18: Insurance Performance Summary
Half Year Ended 31 December ($m) 2003 Net Earned Premium 187.7 343.2 82.8 Net Claims (108.6) (205.7) 89.4 Net Commission and Expenses (50.3) (86.2) 71.4 Underwriting Result 28.8 51.3 78.1 Investment Income on TR 6.2 12.3 98.4 Insurance Margin 35.0 63.6 81.7 EBITA 35.8 69.1 93.0 LGA/LGNZ included fro
Slide 19: Divisional KPIs
Divisional - KPIs | Half Year Ended 31 December (%) Gross Earned Loss Ratio 53.4 55.9 (2.5) Net Earned Loss Ratio 58.4 60.0 (1.6) Total Expenses (% GEP) 24.8 28.1 (3.3) Combined Operating Ratio 85.3 85.1 0.2 Insurance Margin 18.2 18.5 0.3 2003 includes a full six months contribution from Lumley comp
Slide 20: Insurance: Half Year Highlights
¢ Strong underwriting results from all businesses e« Claims environment remains favourable ¢ Top line growth is under pressure ¢ Integration largely complete _ 2005 Half Year Results oo Lo
Slide 21: Insurance Outlook
¢ Modest top line growth « Competitive environment « Premium rates are moderating ¢ Gradual return to long term claim patterns _ 2005 Half Year Results oo Lo
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Slide 23: Industrial & Safety Performance Summary
| gaoustral @ eetety Revormance summery 2004 / tT : Revenue 574.9 587.5 2.2 Half Year Ended 31 December ($m) 2003 EBITA 53.0 51.4 (3.0) _ 2005 Half Year Results Ll
Slide 24: Industrial & Safety: Half Year Highlights
* Continued roll-out of new and re-modelled trade centres ¢ New distribution model largely implemented ¢ Good sales growth in Blackwoods (northern and western regions) ¢ Protector Alsafe - operationally showing positive signs ¢ Good sales growth in NZ safety businesses and Packaging House « Business
Slide 25: Industrial & Safety Outlook
¢ Continued sales growth in the second half ¢ Improved profit margins following implementation of improvement initiatives ¢ Continued rollout of new trade centres . 2005 Hale Yeor Results” | | | | L L : L L L ys L L ys L L Q L L : L L c L L L L L ] L L ] L L
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Slide 27: Chemicals & Fertilisers Performance Summary
Chemicals & Fertilisers Performance Summary Half Year Ended 31 December ($m) 20032004 Revenue 171.5 217.9 27.1 EBITA 20.6 29.1 41.3 _ 2005 Half Year Results oo 7 LI
Slide 28: Chemicals & Fertilisers: Half Year Highlights
¢ Ammonium Nitrate contribution 24% higher than pcp ¢ Sodium cyanide volumes growing in line with expectations ¢ Fertiliser volumes 53% higher than pcp ¢ Capacity expansion projects on track . 2005 Hale Yeor Results” | | | | L L : L L L ys L L ys L L Q L L : L L c L L L L L ] L L ] L L
Slide 29: Chemicals & Fertilisers Outlook
¢ Continued buoyancy in demand from domestic resource sector e« Export market development for sodium cyanide ¢ Good start to fertiliser sales programme with autumn break the next critical period * Ammonium nitrate shutdown in second half _ 2005 Half Year Results oo Lo
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Slide 31: Australian Railroad Group
Australian RailroadGroup, ¢ Improved earnings through - grain tonnage; and - new iron ore contract ¢ Partly offset by - increased fuel costs; and - labour costs to meet peak demand _ 2005 Half Year Results oo 7 LI
Slide 32: GPEF 1 and GPEF 2
¢ GPEF 1: - divestments likely to be post June 2005 - some dividends and final payments in 04/05 - portfolio on plan ¢ GPEF 2 (plus Co-invest Fund): - current commitment $241m - further closing expected March - Noel Leeming performing to plan _ 2005 Half Year Results oo Lo
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Slide 34: Outlook
¢ Full year profit expected to exceed 2003/04 (excluding profit on sale of Landmark) ¢ Strong global resources demand to support coal, gas and mining chemicals earnings ¢ Domestic economy tightening . 2005 Hale Yeor Results” | | | | L L : L L L ys L L ys L L Q L L : L L c L L L L L ] L L ] L L
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