Wesfarmers Limited · ASX:WES
Wesfarmers — Non-Deal Roadshow (October 2004)
48 slides from Wesfarmers's roadshow presentation, Oct 5, 2004
Slide 1: Overseas Presentation to United States & European Investors
We Wesfarmers Limited ABN 26 006 984 049 § October 2004 The Manager Company Announcements Office Australian Stock Exchange Limited Level 3 20 Bridge Street SYDNEY NSW 2006 Dear Sir OVERSEAS PRESENTATION TO UNITED STATES & EUROPEAN INVESTORS Following is a presentation that is to be given to overseas
Slide 2: Investor Briefing
Slide 3: Operating Revenue and Net Profit
Operating Revenue* 7,672.9 Net Profit (before goodwill) 623.9 Goodwill Amortisation (85.7) Net Profit (after goodwill excluding Girrah/Landmark) 481.9 7,706.6 958.6 (85.5) 569.2 * Excludes revenue from the sale of Girrah (2003) and Landmark (2004)
Slide 4: Revenue by division, June 2004
June 2004 Hardware/DIY AS$1,824m Energy AS750m Chemicals & Fertilisers Other A$433m A$780m Insurance Industrial & AS387m Safety Products A$768m
Slide 5: To provide a satisfactory return to shareholders
To provide a satisfactory return to shareholders
Slide 6: EPS and share price
986L L861 8861 6861 0661 L661 7661 £661 v66l S661 9661 L661 8661 6661 0007 L007 7007 £007 vO0T wm EPS ——Share Price
Slide 7: All Ordinaries vs Wesfarmers Limited
120,000 100,000 80,000 60,000 40,000 20,000 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 — All Ordinaries «Wesfarmers Limited
Slide 8: Total EBIT breakdown
i Total EBIT A$35.9m Rural Services 20.1% Ene rgy J _ a 12.7% 9 ' ve 9.2% Fertilisers 58% ‘October 2004
Slide 9: Total EBIT A$965m
Total EBIT A$965m Energy 24.4% Hardware/DIY 35.3% Other 13.0% Industrial & Safet 9 on Chemicals & Insurance Fertilisers 9.2% 9.0% October 2004
Slide 10: Logical Incrementalism
Logical Incrementalism
Slide 11: Improve performance of existing businesses
1. Improve performance of existing businesses 2. Expand existing businesses 3. Portfolio management
Slide 12: Corporate Strategies
Corporate Strategie 1. Improve performance of existing businesses 2 ry & my a 3 Portfolio management
Slide 13: Objective setting and performance measures
¢ Objective Setting ¢ Performance Measures ¢ Performance Targets e Management Accounts ¢ Cash Management ¢ Corporate Planning e Project Evaluation « Remuneration
Slide 14: Return targets: ROE, ROC, IRR
¢ Group ROE, = 19% after tax ¢ Divisions EBITA/Capital (ROC) = 20% before tax ¢ Projects IRR = 10% after tax
Slide 15: | October 1004
10-20 | October 1004
Slide 16: Division performance: Hardware, Industrial & Safety, Insurance
Hardware 392.1 1,840.0 21.3 18.0 Industrial & Safety 112.0 814.1 13.8 14.7 Insurance 95.8 376.9 25.4 65.8 * Excluding Girrah
Slide 17: Performance trend
15.7 2000 2001 * Excluding Girrah ** Excluding Landmark October 2004 2004**
Slide 18: Expand existing businesses
— Expand existing businesses 2. To = oO = oc oO S eee = Oo
Slide 19: Wesfarmers CSBP
Wesfarmers CSBP ‘October 2004 _ 18
Slide 20: Sales volumes five year trend
"oales Voluines CohA 5 Year Trend 1.8 1.2 0.9 + o6/f 7 | @ 0.3 - 0.0 2000 2001 2002 2003 2004 Fertilisers 1 Chemicals October 2004
Slide 21: EBITA and EBITA/Capital
EBITA and EBITA/Capital- EBITA EBITA/Capital ASm % 100 20 + 18 + 16 80 2002 2003 2004 —@ EBITA/Capital October 2004
Slide 22: Energy
in October 2004
Slide 23: Coal, Gas and Power businesses
Coal e Premier: steaming coal, Western Australia e« Curragh: domestic steaming coal and export coking coal, Queensland e Bengalla: domestic and export steaming coal, New South Wales Gas e Kleenheat: national LPG distribution e Wesfarmers LPG: LPG export e Air Liquide: industrial gases Statewest Powe
Slide 24: EBITA and EBITA/Capital
EBITA* EBITA/Capital 1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004 * * Excludes Girrah umeciss 5m in 2003 se
Slide 25: Coal sales volumes
jilliontonnes) ss Steaming Coking Total Domestic | Export Export Premier 3.4 3.4 Curragh 2.5 4.6 7.1 Bengalla* 0.6 1.7 2.3 TOTAL 6.5 1.7 4.6 12.8 * Represents Wesfarmers’ 40% interest
Slide 26: Coal
Coal
Slide 27: Coal price history
JRP USS/Tonne FOB nominal : “> _ ia oN / © 4 MM \ WN ‘ V4 35 5 30 T T T T T T T T T T T T T T T T T T T T 83 85 87 89 91 93 95 97 99 01 03 04
Slide 28: Thermal Coal Price
Thermal Coal Pric USS/Tonne FOB nominal 70 60 / 50 | 40 30 it ean j 00 No Apr- 96 = Apr-97 Apr-98 Apr-99 Apr-00 = Apr-01 Apr-02 Apr-03 Apr-04 —— Spot Price Source: Barlow Jonker
Slide 29: Hardware
I October 2004
Slide 30: Warehouses and stores
Warehouses Traditional Stores WA Salvage Stores As At 30 June 2004 Excludes Frame & Truss Operations
Slide 31: Growth since 1991
1991 1993 1995 1997 1999 2001 2003
Slide 32: Trading Result
Trading Result (ASm) 2003 2004 Change Revenue* 3,375.3 3,771.6 11.7% EBITA* 332.3 374.6 12.7% Amortisation 30.0 50.0 0.0% EBIT 282.3 324.6 15.0% EBITA/Sales Ratio 9.8% 9.9% 0.1% “Excludes Revenue and E EBITA from property and other | Octoper 2004
Slide 33: Industrial & Safety
SS Se SO
Slide 34: Market Positioning
am Positioning ¢ Three markets I, Atkins - Maintenance repair & BAKERS operating (MRO) COMSTRUCTION 1 SROEUSTREAL. - Safety Blackwoods - Packaging (NZ only) MOE red « Market leader AUS & NZ Mullings Fasteners aut * 500,000 SKU’s A$210m inventory Sl packaging House ¢ 17 product trading departments JP
Slide 35: Branch network and trading styles
PORTLAND Gr hPONG CARRS TFOWNSVILLE VME RESBANE, LISMORE GLETON ‘NEWCASTLE GOSFORD SYDNEY WOLLANGONG sourHeoRT > Se CHRISTCHURH bENEDI AVERCARCHL @ TRADING STYLES: Blackwoods 65 ® Atkins 3 Blackwoods Atkins 21 ® Bakers 6 ® Motion 10 Metals 1 Mullings 9 Protector Alsafe 55 ® NZ Safety 24 Blackwoods (
Slide 36: EBITA / Operating Revenue
EBITA / Operating Revenue 10.5% 9.7%
Slide 37: Insurance
- SSS SAS
Slide 38: Insurance businesses
« Wesfarmers Federation Insurance e Lumley General (Australia) e Lumley General (New Zealand) e« Lumley Finance
Slide 39: Insurance results by year
100 EZ 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Year
Slide 40: Rail network interest
e 50% owned e Western Australian and South Australian rail networks above and below rail e Organic expansion potential
Slide 41: Other investments
e EROC - mining / infrastructure contractor e Norcros - UK - based building materials, coatings ¢ Riviera - cruisers ¢ Virgin Active - health clubs in Europe and South Africa « Raywood - vehicle control systems
Slide 42: Portfolio management
sa 3. Portfolio management
Slide 43: Recent acquisitions and disposals
e Sale of Landmark rural e Purchase of Lumley Insurance e Purchase of Paykel Industrial e Sale of Sotico timber
Slide 44: Financial Focus and Strict Disciplines
1. Financial Focus 2. Strict Disciplines 3. Building Growth-Enabling Competencies 4. Culture
Slide 45: Capex, acquisitions and depreciation
86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 (7a Capex M—MBAcquisitions -—Depreciation _ | October 2004 | ©§©2=—hCEFC CC
Slide 46: Capital Expenditure Programme
apital Expenditure Programme 2005 Budget Total: A$451m Industrial & Safety A$19m Energy Chemicals & AS247m Fertilisers _, A$40m Hardware A$124m Insurance Other AS18m 493m October 2004 | i oo oo Lo a
Slide 47: Net Debt / Equity
| ‘Net Debt/ Equi ty A Le 2000 2001 2002 2003 2004 | October 1004
Slide 48: SS Se SO
. SS Se SO