Slide 1: 2015 Full-Year Results Supplementary Information
2015 Full-Year Results Supplementary Information Thursday, 20 August 2015 (to be read in conjunction with 2015 the Full-Year Results Briefing Presentation)
Slide 2: Presentation outline
Presentation outline Item Page Coles 3 Home Improvement & Office Supplies 7 Kmart 13 Target 17 Chemicals, Energy & Fertilisers 22 Resources 29 Industrial & Safety 40 Balance Sheet & Cash Flow 43 2015 Full-Year Results | 2
Slide 3: Coles
Coles John Durkan Managing Director
Slide 4: Coles network
Coles network As at 30 June 2015 Selling Area Supermarkets (sqm) 1,749,840 6 7 11 Liquor (sqm) – ex 209,490 hotels 159 228 77 91 112 5 73 125 776 Supermarkets 56 35 7 46 858 Liquor stores 244 271 1 90 Hotels 211 181 662 Convenience 204 205 16 15 Coles 2015 Full-Year Results | 4
Slide 5: Store network movements
Store network movements Open at 30 Open at 30 Opened Closed Re-branded June 2014 June 2015 Supermarkets Coles 745 25 (10) 11 771 Bi-Lo 17 - (1) (11) 5 Total Supermarkets 762 25 (11) - 776 Liquor 1st Choice 98 5 (3) - 100 Vintage Cellars 77 5 (3) - 79 Liquorland 656 46 (23) - 679 Hotels 90 1 (1) - 90
Slide 6: Revenue reconciliation
Revenue reconciliation 2015 2014 Food & Food & Year end 30 June ($m) Convenience Total Convenience Total Liquor Liquor Segment revenue 30,784 7,417 38,201 29,220 8,171 37,391 (Gregorian)1 Less: Other revenue (279) (13) (292) (252) (12) (264) Headline sales 30,505 7,404 37,909 28,968 8,159 37,127 (Gr
Slide 7: Home Improvement & Office Supplies
Home Improvement & Office Supplies John Gillam Managing Director
Slide 8: Bunnings network
Bunnings network As at 30 June 2015 3 236 Warehouse stores 65 Smaller format stores 41 8 7 28 9 4 33 Trade Centres 11 3 2 70 16 7 54 9 6 19 19 5 4 1 1 6 1 Home Improvement 2015 Full-Year Results | 8
Slide 9: Store network movements
Store network movements Open at Under Open at 30 Opened Closed 30 June Expanded construction June 2014 2015 30 June 2015 Home Improvement Bunnings Warehouse 223 20 (7) 236 2 10 Bunnings smaller 64 6 (5)1 65 1 1 formats Bunnings Trade 33 4¹ (4) 33 - - Centres 1 Includes Gisborne (NZ) small format sto
Slide 10: Home Improvement performance summary
Home Improvement performance summary Year end 30 June ($m) 2015 2014 % Revenue 9,534 8,546 11.6 EBITDA 1,228 1,106 11.0 Depreciation & amortisation (140) (127) (10.2) EBIT 1,088 979 11.1 EBIT margin (%) 11.4 11.5 Less: Net property contribution1 40 13 207.7 Trading EBIT 1,048 966 8.5 Trading EBIT ma
Slide 11: Officeworks network
Officeworks network As at 30 June 2015 1 156 Officeworks Stores 4 Fulfilment Centres 28 1 15 1 1 Customer Service Centre 8 1 Print Hub 53 1 1 1 49 1 2 Office Supplies 2015 Full-Year Results | 11
Slide 12: Store network movements
Store network movements Under Open at 30 Open at 30 Opened Closed construction June 2014 June 2015 30 June 2015 Office Supplies Officeworks 151 7 (2) 156 3 Harris Technology 1 - (1) - - Office Supplies 2015 Full-Year Results | 12
Slide 13: Kmart
Kmart Guy Russo Managing Director
Slide 14: Kmart network
Kmart network As at 30 June 2015 2 3 203 Kmart stores 246 KTAS centres 41 53 23 25 15 18 52 75 47 68 14 5 4 4 Kmart 2015 Full-Year Results | 14
Slide 15: Store network movements
Store network movements Open at 30 Open at 30 Opened Closed June 2014 June 2015 Kmart 192 11 - 203 Kmart Tyre & Auto 243 6 (3) 246 Kmart 2015 Full-Year Results | 15
Slide 16: Revenue reconciliation
Revenue reconciliation Year end 30 June ($m) 2015 2014 Segment revenue (Gregorian) 4,553 4,209 Less: Non sales revenue (3) (5) Headline sales (Gregorian) 4,550 4,204 Add: Gregorian adjustment1 (10) (10) Headline sales revenue (Retail)2 4,540 4,194 1 Adjustment to headline sales revenue to reflect 30
Slide 17: Target
Target Stuart Machin Managing director
Slide 18: Target network
Target network As at 30 June 2015 2 1 183 Large 122 Small 32 30 21 12 17 11 58 41 48 26 5 1 Target 2015 Full-Year Results | 18
Slide 19: Store network movements
Store network movements Open at Open at Opened Closed 30 June 2014 30 June 2015 Large 180 6 (3) 183 Small 128 5 (11) 122 Total 308 11 (14) 305 Target 2015 Full-Year Results | 19
Slide 20: Revenue reconciliation
Revenue reconciliation Year end 30 June ($m) 2015 2014 Segment revenue (Gregorian) 3,438 3,501 Less: Non sales revenue - - Headline sales (Gregorian) 3,438 3,501 Add: Gregorian adjustment1 (6) (5) Headline sales revenue (Retail)2 3,432 3,496 1 Adjustment to headline sales revenue to reflect 30 June
Slide 21: Target transformation plan
Target transformation plan The Target difference (FY18) Growth & efficiency (FY16-17) Fixing the basics (FY14-15) Outstanding customer experience Right product choices Fashion & style backed by good quality Low prices Better, simpler, cheaper Team with personality & pride Horizon end: 30 June 2015 H
Slide 22: Chemicals, Fertiliser & Energy
Chemicals, Fertiliser & Energy Tom O’Leary Managing Director
Slide 23: Business overview
Business overview Business Geography Sector Key Customers Nickel, BHPB, Minara, AN, AGR, Ammonia WA internal Fertilisers Ammonium Dyno Nobel, Downer, Rio Tinto, WA/Global Iron ore, gold nitrate (AN) Orica Ammonium (50%) Qld Coal BMA, Curragh, Rio Tinto nitrate (AN) Sodium cyanide (75%) WA/Global Gol
Slide 24: Fertiliser sales
Fertiliser sales Over 1 million tonnes sold in FY15, with strong nitrogen sales in first half kt 1,200 2nd Half 1st Half 1,000 800 776 600 714 713 610 779 400 200 244 227 220 260 160 0 FY11 FY12 FY13 FY14 FY15 Chemicals, Energy & Fertilisers 2015 Full-Year Results | 24
Slide 25: Global fertiliser & ammonia pricing
Global fertiliser & ammonia pricing Sharp movements in US$ ammonia pricing in FY15, ending the year lower than prior year US$/t 800 Urea (FOB Middle East) DAP (FOB US Gulf) Ammonia (FOB Middle East) 700 600 500 400 300 200 100 0 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 J
Slide 26: PVC-VCM spread
PVC-VCM spread The ‘PVC – VCM spread’ refers to the difference between the Asian PVC selling price & VCM input cost Further declines in US$ spread during FY15, partially offset by declining A$ $/t 250 FY Average US$/t FY Average A$/t 200 150 100 50 0 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11
Slide 27: World LPG prices – Saudi CP
World LPG prices – Saudi CP Sharp decline in Saudi CP during FY15 $/tonne 1,400 Saudi CP US$/t (propane) Saudi CP A$/t (propane) 1,200 1,000 800 600 400 200 0 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Chemicals, Energy & Fertilisers 2015 Full-Year Results | 27
Slide 28: LPG production
LPG production Continued long term trend of LPG content decline kt t/TJ 200 0.9 150 0.8 100 0.7 50 0.6 0 0.5 FY2011 FY2012 FY2013 FY2014 FY2015 H1 LPG production (kt) H2 LPG production (kt) H1 average LPG content (t/TJ) FY average LPG content (t/TJ) Chemicals, Energy & Fertilisers 2015 Full-Year Res
Slide 29: Resources
Resources Stewart Butel Managing Director
Slide 30: Global environment – current & short-term trends
Global environment – current & short-term trends • World blast furnace iron production relatively stable excluding China – Volatile Chinese import metallurgical coal demand & generally slowing – Chinese excess steel capacity being placed into global markets further impacting price • Metallurgical co
Slide 31: Australian coal market prices
Australian coal market prices Australian steaming coal prices Australian hard coking coal prices US$/tonne (nominal) FOB Australia (annual versus spot) US$/tonne (nominal) FOB Australia (annual versus spot) JPU Reference Price Spot Price Annual Reference Price Quarterly Benchmark Reference Price Spo
Slide 32: Curragh export metallurgical sales product mix
Curragh export metallurgical sales product mix FY15 Actual FY16 Forecast 8.6 million tonnes 8.0 - 9.0 million tonnes Resources 2015 Full-Year Results | 32
Slide 33: Coal production volumes
Coal production volumes Year Ended (‘000 tonnes) Mine Ownership Coal Type Jun 2015 Jun 2014 Curragh, QLD 100% Metallurgical 9,066 8,810 Steaming 3,187 3,498 Bengalla, NSW1 40% Steaming 3,304 3,451 Total1 15,557 15,759 1 Wesfarmers attributable production. Resources 2015 Full-Year Results | 33
Slide 34: Coal sales volumes
Coal sales volumes Year Ended (‘000 tonnes) Mine Ownership Coal Type Jun 2015 Jun 2014 Curragh, QLD1 100% Metallurgical 8,604 8,779 Steaming 3,202 3,570 Bengalla, NSW2 40% Steaming 3,351 3,446 Total1, 2 15,157 15,795 1 Curragh metallurgical coal sales excludes traded coal. 2 Wesfarmers attributable
Slide 35: Curragh mine: longer-term development options
Curragh mine: longer-term development options • Curragh expansion to 10mtpa export capacity – Feasibility study completed – Low incremental capital cost – WICET1 Stage 1 operations ramp-up underway – Timing subject to market conditions • MDL 162 development – Additional drilling resulted in an upgra
Slide 36: Bengalla mine: longer-term development options
Bengalla mine: longer-term development options • Expansion completed in early 2015, on time & below budget – Low incremental capital cost – HME successfully commissioned & operating – Mine operating at 10.7mtpa ROM capacity • New Development Consent – Granted 4 March 2015 – Extend mine operations un
Slide 37: FX hedging profile
FX hedging profile Curragh Bengalla Current US$ Average Current US$ Average Year end sold forward A$ / US$ Year end sold forward A$ / US$ 30 Jun (US$m) hedge rate 30 Jun (US$m) hedge rate 2016 374 0.88 2016 139 0.89 2017 330 0.84 2017 105 0.84 2018 174 0.79 2018 76 0.79 2019 48 0.75 2019 24 0.75 Hed
Slide 38: Resources financial summary
Resources financial summary Year end 30 June ($m) 2015 2014 Commentary Production tonnes - (‘000 tonnes) Strong production at Curragh despite unfavourable Curragh & Bengalla1 15,557 15,759 geological conditions & increased overburden removal; Bengalla production adversely affected by weather Revenue
Slide 39: Coal reserves notes (as per slide 35)
Coal reserves notes (as per slide 35) Curragh coal reserves The estimates of Curragh Project coal reserves have been carried out under the Australasian Code of Reporting of Exploration Results, Mineral Resources & Ore Reserves 2012 (the “JORC Code 2012”). The Curragh Project includes all of the ‘Cur
Slide 40: Industrial & Safety
Industrial & Safety Oliver Chretien Managing Director
Slide 41: Execution through four business streams
Execution through four business streams Blackwoods Safety Specialists Industrial Specialists Workwear Group Workwear & MRO1, Safety, Services Gas uniforms 1 Maintenance, Repair & Operations – includes safety. Industrial & Safety 2015 Full-Year Results | 41
Slide 42: Distribution network: locations
Distribution network: 454 locations As at 30 June 2015 240 branches, 159 gas distribution points & 55 Workwear franchise locations 1 1 Indonesia 84 Generalists 1 UAE 65 Blackwoods (incl Indonesia) 1 UK 19 Blackwoods Protector 72 Safety Specialists 1 3 1 13 15 14 31 Protector Alsafe 1 3 18 8 7 11 13
Slide 43: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Terry Bowen Finance Director, Wesfarmers Limited
Slide 44: Discontinued operations & NTIs
Discontinued operations & NTIs 2015 2014 Year ended 30 June ($m) Pre-tax Post-tax Pre-tax Post-tax Insurance division earnings - - 220 145 Gain on sale of Insurance division - - 1,040 939 Gain on sale of 40% interest in ALWA - - 95 95 Discontinued operations - - 1,355 1,179 Target goodwill impairmen
Slide 45: Return on capital
Return on capital 2015 2014 EBIT Cap Emp ROC ROC Rolling 12 months to 30 June ($m) ($m) (%) (%) Coles 1,783 16,276 11.0 10.3 Home Improvement 1,088 3,244 33.5 29.3 Office Supplies 118 1,034 11.4 9.4 Kmart 432 1,312 32.9 26.9 Target 90 2,466 3.6 2.9 Chemicals, Energy & Fertilisers 233 1,535 15.2 14.4
Slide 46: Overview of the Group balance sheet
Overview of the Group balance sheet Year ended 30 June ($m)1 2015 2014 Commentary Inventories 5,497 5,336 Receivables & prepayments 1,658 1,805 Detailed working capital discussion provided on Trade & other payables (5,764) (5,424) slide 47. Other 393 403 Net working capital 1,784 2,120 Property, pla
Slide 47: Balance sheet – working capital
Balance sheet – working capital Year ended 30 June 2015 2014 Commentary ($m)1 • Home Improvement: Higher inventory following store network expansion • Industrial & Safety: Higher due to acquisition of Inventories 5,497 5,336 Workwear Group • Resources: Higher due to increased volumes on hand Receiva