Wesfarmers Limited · ASX:WES

Wesfarmers — Investment Conferences New York and London, March 2006

40 slides from Wesfarmers's conference presentation, Mar 6, 2006

  1. Slide 1: Wesfarmers Limited

    We Wesfarmers Limited ABN 26 006 984 049 6 March 2006 The Manager Company Announcements Office Australian Stock Exchange Limited Level 4 20 Bridge Street SYDNEY NSW 2000 Dear Sir PRESENTATION TO BE GIVEN AT INVESTMENT CONFERENCES — NEW YORK AND LONDON Following is a presentation that is to be given

  2. Slide 2: sp id

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  3. Slide 3: To provide a satisfactory return to shareholders

    To provide a satisfactory return to shareholders [i whhUhmCmCCmC—CrSTL

  4. Slide 4: Group Performance Summary

    Group Performance Summary = = =~——Or—— LLL LLL TE Half Year ended 31 December (A$m) 2005 ~—- 200 Revenue EBITDA 829.6 601.5 37.9 EBIT sl a cre Re os ee Te icons Leaner io a ete i a ia el se al Cae a y / oo —- oo : - 2 7 2 oo e a | c _ pee eecereee aaa [ eee antes Ono egos oo oe - _ Be coe co _ oo a

  5. Slide 5: Rolling months to Dec 2005

    Rolling 12 months to 31 Dec 2005 Hardware, AS$1,807m Energy, A$831m Chemicals & Fertilisers, A$493m Other Businesses, Insurance, ASA79m Industrial & AS414m Safety, A$786m CO —‘“ “Ad

  6. Slide 6: Cents per share

    cents per share 300 5 250 200 150 100 50 2001 2002 2003 2004 2005 1HO6 © EPS (A-IFRS) EPS (AGAAP) Operating cashflow per share @ Dividend per share 2)

  7. Slide 7: Enhance the performance of existing businesses

    Enhance the performance of existing businesses Expand existing businesses Manage the portfolio Pursue sustainability

  8. Slide 8: Enhance the performance of existing businesses

    Enhance the performance of existing businesses

  9. Slide 9: —rrr——r—”—”——

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  10. Slide 10: Group Performance, Divisional Performance, Project Evaluation

    Group Performance Divisional Performance Project Evaluation EBITA/Capital (ROC,) Top quintile of ASX 100 22% 006 10% after tax

  11. Slide 11: Half Year ended December

    Half Year ended 31 December Hardware Energy 343.2 64.2 33.4 Insurance 63.5 33.6 30.0 Industrial & Safety 46.0 13.2 13.7 Chemicals & Fertilisers 26.7 17.7 19.8 * Rolling 12 months to 31 December as reported under A-IFRS *“ Rolling 12 months to 31 December reflecting adoption of A-IFRS from 1 July 200

  12. Slide 12: Funds Management

    Funds Man 2003* 2004# 2005 1H 2006* wa A-IFRS me Target * Excludes sale of Girrah # Excludes sale of Landmark ~* Rolling 12 months to 31 December 2005 11

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    | _— = _— — US _ Oe _rrt—— ES — rE _— _— = _ _ 0 = ——E™ a ST “ae =u a °°” — | = | Se _ _ - _ - ag - = == i) i - cel (h LP HEARSE LLB ADDL AOD DOLE oo. _— _ _ a 4 om: pyspeare Ne ie a .. . . .. ..... ... ...}§} — oP a , -

  15. Slide 15: Quick Facts: Hardware

    -d Mii il il ihn il) il ions on Wil —TwTwTwTwMa_=ii iis ssi i @ QUICK FACTS 138 warehouse stores 74 traditional stores / ; 45,000 product lines gt SL 22,000 employees | Aa i iin AE CONTRIBUTION TO GROUP EBIT Alive Hi Warehouse stores 138 [7 Small format stores 74 f@ WA Salvage stores 17 V HouseWorks

  16. Slide 16: EBIT and EBIT/Capital

    EBIT _ EBIT/Capital ASm % 30 b 25 F 20 r 15 2001 2002 2003 2004 2005 1H 2006 ©) First HY EBIT mm Full Year EBIT ~~ EBIT/Capital (R12) Cr hhmhmti—“—OisOsOSOSs—s—ésCE

  17. Slide 17: Continued cash sales growth in tighter retail environment

    e Continued cash sales growth in tighter retail environment - Store-on-store cash sales growth 2.7% in 1H2006 (1.1% in first quarter rising to 4.0% in second quarter) e Improving trade sales growth - housing market stabilisation e« Continued expansion of store network - 4 opened in first half, 7-9 f

  18. Slide 18: . —i“—™it™O—O—OCOt—t—OOS—sSsS _ _

    . —i“—™it™O—O—OCOt—t—OOS—sSsS _ _ - _ _ VY rs Ene ee oan ' ne a . _ _. oe =“ 7 . a oe . _.. oe y oe ee sea pcab Ce ee Be ae wae a me ie Me . a 1 Ges 7 : oo i ae i) ve oo... DO ee a _ ; 8 i Ve j les ye ie oo ey Lo lL

  19. Slide 19: EBIT and EBIT/Capital

    |||) i hh) | 11h) ) ) il ) il) | \| ) \| i) | !) il) | \| |) \| | il) | il) | \| i) il | il) | il) | \| ) | Wi yy Wy) Wh Cee EBIT EBIT/Capital 400 70 w yn oa Ll + 60 50 nN nn oO L + 40 30 + 20 T = ° 2001 2002 2003* 2004 2005 1H 2006 First HY EBIT @e Full Year EBIT ~@~EBIT/Capital (R12) * Excludes Gi

  20. Slide 20: Coal; Gas and Power

    TT e Coal Curragh North completion Premier sales development i Bengalla production increase i Increased coal volumes e Gas and Power - New gas products and markets - Remote power opportunities Cr rr —( LULL

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  22. Slide 22: EBIT and EBIT/Capital

    EBIT EBIT/Capital ASm % 160 70 140 - | 60 120 5 r 50 100 5 L 40 80 5 mem QUICK FACTS 60 4 ee L 20 : 40 4 1,463 employees a Poe . ee 05 T T T 0 2001 2002 2003 “? First HY EBIT Wa Full Year EBIT ~e EBIT/Capital (R12) 2004 2005 1H 2006

  23. Slide 23: Continue optimising reinsurance programme

    e Continue optimising reinsurance programme e¢ Bolt-on acquisition opportunities e Target new segments for profitable growth ri hhUmhmtm—C—CUCOSTL

  24. Slide 24: —— == — =

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  25. Slide 25: EBIT and EBIT/Capital

    a EBIT EBIT/Capital ASm % 140 16 120 | kz S ~ p14 100 + y 12 + 10 80 5 Lg “, ic 60 | QUICK FACIS me 0 40 + 1 4 100,000 customers 20 | mae 12,000 vendors Or employees 2002 2003 2004 2005 1H 2006 DSS ications 7 First HY EBIT @@ Full Year EBIT ~e- EBIT/Capital (R12)

  26. Slide 26: Appointment of new CEO, Mr Terry Bowen

    e Appointment of new CEO, Mr Terry Bowen (October 05) e Restructure business model around trading streams e Improve customer service in each business e Review product range and network performance ¢ Improve internal efficiencies and processes e Benefits from continued spending in mining and infrastr

  27. Slide 27: HH gt nt etn entre ZU sn Wi

    HH gt nt etn entre ZU sn Wi ch ig ee ng 7 “AN AME We Liat aii

  28. Slide 28: EBIT and EBIT/Capital

    i t TT MMMM MMMM EBIT EBIT/Capital ASm % 100 20 18 ia 90 5 4 r 80; + 16 a : 70 5 cc L414 L 12 ira o L T = oO => NY Ww oo fc 1 1 1 T on kD 2004 2005 1H 2006 Full Year EBIT ~e- EBIT/Capital (R12) ‘16 one Die a _ iG a

  29. Slide 29: Kwinana AN expansion

    e Kwinana AN expansion - duplication of capacity to 470,000 tpa - construction commenced February 2006 - completion expected second half 2007 e Feasibility study on expansion at QNP (50% owned) e Capacity expansion through debottlenecking e Liquid fertilisers - development of new markets ¢ Developme

  30. Slide 30: Australian Railroad Group (50% interest)

    Australian Railroad Group (50% interest) GRESHAM Gresham Private Equity ESTMENT ROUSE, WESPINE Wespine (50% interest) INDUSTRIES

  31. Slide 31: Wesfarmers and G&W agreed to sell 100% for A$1.3bn

    e Wesfarmers and G&W agreed to sell 100% for A$1.3bn enterprise value - Queensland Rail: above rail - Babcock & Brown: below rail - South Australia disaggregated (“ASR”) e Wesfarmers to sell its 50% of ASR to G&W for AS20m e Sales subject to approvals, licences etc. ¢ Profit before tax for Wesfarmer

  32. Slide 32: Current investment portfolio

    e Virgin Active sold November 2005 e Current commitment A$323m (gross IRR of 34.5%) (Wesfarmers A$150m) e EROC sold January 2006 (4 times multiple) e Pacific Print Group (50%) acquired November 2006, enterprise value « Further exits over next several years AS190m CURRENT INVESTMENT PORTFOLIO

  33. Slide 33: shed

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  34. Slide 34: Expenditure

    Expenditure | 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 O01 O2 03 04 O5 O6F yw Capital Expenditure Acquisitions som Depreciation 33

  35. Slide 35: Capital expenditure by division

    AS775m Hardware A$268m Chemicals & Fertilisers AS99m ) Industrial & Safety Insurance | AS23m AS28m Energy AS357m

  36. Slide 36: Wap Lo pereeea me emis Se iy

    30 20 10 Wap Lo pereeea me emis Se 4 iy 7 . — La oe a Ce @ A-IFRIS 35

  37. Slide 37: ioe)

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  38. Slide 38: Financial performance

    Financial performance Safe and rewarding workplaces Good value products and services Respect for customers and suppliers Environmental responsibility Ethical dealings Community contribution

  39. Slide 39: Financial Focus

    Financial Focus Strict Disciplines Building Growth-Enabling Competencies Culture

  40. Slide 40: ME SI I ee

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