Slide 1: A Se Se cS ao a) Mm _ i —_—_—_—_— oo a rrrr—r—“—.CCsSCsiSsSsa—Ssrt—O™eiCOWSCNCCikzaCiWCiC‘iCz_CC Oe
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Slide 2: Group Performance Highlights and agenda
Hn Group Performance Highlights Richard Goyder Group Financial Results Gene Tilbrook Energy David Robb Home Improvement John Gillam Insurance Bob Buckley Industrial and Safety Terry Bowen Chemicals & Fertilisers Keith Gordon Other Businesses Gene Tilbrook Outlook Richard Goyder
Slide 3: HAE RUN OR IM Lo
HAE RUN OR IM Lo Ve — rrt—O BUM ae ESL MOET EME Re lcae ata a Ue oy ea HGR a, VAL Ore MO ee ee LEE OU LE EE . ee Lo _ ee en a ie WE TO I 0 ee Ce DP OE GEE | .|.|=—h—h hUCOCOCO~—C—C—C—C—C.DUCU.UC”C.CCU I Cl Le MORAN SOLA crepe = =. YES EMEDICINE ONE OME GET EN EE ARCA RU ENT aN OT) LO I SO Ge Loe ~~.
Slide 4: Group profit after tax of $1.05 billion
¢ Group profit after tax of $1.05 billion e Operating revenue up 8.6% ¢ Net profit before sale of ARG of $869 million, up 23.9% ¢ Profit on sale of ARG of $234.9 million (before tax) e Operating cash flow up 20.8% e ROE of 31.1%, up 5.7% ¢ Full year dividend increased to $2.15 per share, up 19.4% 20
Slide 5: Year ended June earnings by division
Year ended 30 June Home Improvement 4 420.5 22.9 23.3 Energy 4 627.2 68.0 47.6 Insurance Vv 124.8 30.9 31.3 Industrial & Safety Vv 96.8 12.6 13.6 Chemicals & Fertilisers Vv 81.4 15.1 18.1 2006 Annua
Slide 6: OSCE oN ialte
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Slide 7: Year ended June ($m)
Year ended 30 June ($m) Operating revenue 8,858.8 8,158.6 8.6 EBITDA (excluding sale of ARG) 1,649.5 1,259.7 30.9 EBIT (excluding sale of ARG) 1,366.0 1,070.8 27.6 Net profit after tax (excluding sale of ARG) 869.4 701.8 23.9 Net profit on sale of ARG 178.7 Net profit after tax 1,048.1 701.8 49.3 Op
Slide 8: Divisional EBIT year ended June
Sl TA Year ended 30 June ($m) Home Improvement 420.5 415.7 1.1 Energy 627.2 317.1 97.8 Insurance 124.8 134.9 (7.5) Industrial and Safety 96.8 108.8 (11.0) Chemicals and Fertilisers 81.4 89.4 (8.9) Other (excluding sale of ARG) 15.3 4.9
Slide 9: Return on equity
(pre goo 2002 2003# 2004* 2005 2006** » ROE AGAAP me ROE A-IFRS ~~ Target # Excludes sale of Girrah * Excludes sale of Landmark ** Excludes sale of ARG 2006 Annual Result
Slide 10: Earnings, operating cash flow and dividend per share
: Earnin perating if Dividend re 2002 2003 2004 2005 2006 EPS-AGAAP* Mi EPS-AIFRS Operating Cashflow @ Dividend EPS and Operating Cashflow per share excludes sale of Girrah (2003), Landmark (2004) and ARG (2006) “ AGAAP EPS excludes goodwill amortisation
Slide 11: Net Debt / Equity of 46.1% at June 2006
Net Debt / Equity of 46.1% at 30 June 2006 Cash Interest Cover Ratio to 30 June 2006 of 13.8 Capital expenditure budget for 2006/07 of $830 million Capacity for: - acquisitions - distribution of ARG sale franking credits - capital management
Slide 12: Capital expenditure by division
30 June (Sm) Home Improvement 218 220 Energy 335 284 Insurance 18 20 Industrial and Safety 25 16 Chemicals and Fertilisers 231 72 Other 3 3 2006 Annual Resull
Slide 13: Energy
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Slide 14: Energy Performance Summary
- Energy Performance : ummary | a oF LLL LLL LLL IE Year ended 30 June ($m) 7 2005 iG a. 7 co 7 0 a Revenue 1,676.1 1,161.5 = 44 - - _ ] EBITDA 795.0 393.8 101.9 Depreciation & Amortisation (167.8) (76.7) 118.8 627. 2 317.1 _ _ 2 oo a ] 2 co a 6 ee, . Sooo. a oe : oo S . ] > 2 -_ 4 ). :
Slide 15: Energy highlights: record metallurgical coal sales
e Record metallurgical coal sales e Record profit and ROC e¢ Curragh North development e Long term Verve Energy supply contract e Further developed domestic LNG, char opportunities e First full year of Kwinana ASU II operations e Remote power business growth 8 |
Slide 16: Energy outlook: Curragh coal sales
Curragh metallurgical coal sales 6.2mt to 6.5mt Sales mix hard / semi / PCI of 50 / 20 / 30% Infrastructure and weather risks on East Coast Curragh North materials handling project completion Continued firm export coal prices in the short term Continued cost pressures, higher Stanwell rebate Interna
Slide 17: Home Improvement
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Slide 18: Home Improvement results
Year Ended 30 June ($m) 2006 005s Y Revenue EBIT 420.5 415.7 1.1 Share Plan & Store Refit Expense 27.7 5.1 Comparative EBIT 448.2 420.8 6.5 Trading Revenue* ($m) 4,247.2 4,015.5 5.8 (%) Comparative EBIT / Trading Revenue 10.6 10.5 0.1 * Excludes property and other non-trading items
Slide 19: 7.1% cash sales growth
7.1% cash sales growth - store-on-store growth: 5.1% full year; 7.5% 2" half 1.5% growth in trade sales 12 warehouse store openings and 32 store upgrades Solid progress on major strategies - merchandising, advertising, supply chain, systems io |
Slide 20: Home Improvement outlook
Continued cash sales growth - volatile retail conditions Improving trade performance, in tight markets Network development and consistency work continues - 10-14 warehouse store openings likely - around 30 store upgrades planned Ongoing effectiveness and efficiency gains
Slide 21: Insurance
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Slide 22: Insurance results year ended June
Year ended 30 June ($m) Gross Written Premium Net Earned Premium Net Claims Net Commission and Expenses Underwriting Result Insurance Margin EBIT 746.5 700.4 6.6 (448.9) (412.1) 8.9 (208.6) (191.1) 9.2 89.0 97.2 (8.4) 111.3 122.9 (9.4) 124.8 134.9 (7.5)
Slide 23: Solid results achieved in all business units
e Solid results achieved in all business units e Record LGNZ result e Three significant claims events - Cyclone Larry, Molong Floods and Grampian Bush Fires e Acquisition of a number of niche portfolios by LGA e Development of new alliances by WFI e Investment in talent 2006 Annual f
Slide 24: Challenging operating environment to continue
Challenging operating environment to continue All business units experiencing increased competition Rates to remain at competitive levels Claims patterns returning to historic levels Compliance workload increasing
Slide 25: Industrial and Safety
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Slide 26: Industrial and Safety results
iii eee al & Safety Eons EE yy Vi ppm by WME DED Year ended 30 June ($m) 005 Revenue EBITDA 111.0 124.9 (11.1) Depreciation & Amortisation of PPE (14.2) (16.0) (11.2) . 7 ) a |. : | _ oe . a _ a a . 1 L o eee oo oo 2 ae a oo
Slide 27: Operating revenue in line with last year
Operating revenue in line with last year Earnings down due to net $11.0m in exceptional items Working capital down 7.0% Restructure into business units complete - support staff savings (150 employees) - individual improvement programmes underway in each business 27 |
Slide 28: Industrial and Safety outlook
1d ¢ Continued strong demand from mining and construction and infrastructure sectors, subdued by: - weaker market conditions in New Zealand - ongoing pressure on the manufacturing sector, particularly Automotive e Benefits from recent restructuring activities, as well as strategic improvement progra
Slide 29: Chemicals & Fertilisers
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Slide 30: Chemicals & Fertilisers results
Chemicals & Fertilise esa yey WM iy Year ended 30 June ($m) . LC. Revenue Chemicals 252.1 210.6 19.7 | Fertilisers a ] ] one aaa ooo EBITDA 123.1 128.0 (3.9) Depreciation & Amortisation of PPE (41.7) (38.6) (8.0) EBIT 81.4 89.4 (8.9) a | i | a . a, _ ]
Slide 31: Chemicals and fertiliser earnings review
hl Il iil yan hd Significant reduction in workplace injuries Chemical earnings in line with 2004/05: - gas supply issues necessitated ammonia import (combined impact $4.5m) - extended QNP shutdown - reduced availability of chlor alkali plant (repairs and product purchases impacted earnings by $1.1m)
Slide 32: Chemicals and Fertilisers outlook
« Chemicals - Continued strong demand from resource sector - Full year benefits from sodium cyanide business improvements - Gas supply a key issue - 15 day ammonia plant shutdown scheduled for August 2006 - shut down expense and replacement product impact $10.7m - AN expansion capex increased to $26
Slide 33: Other Businesses
ee CA 7 ee Lo Z a LC MN EE Co ae Lo MO eae a Le OED) —Srrs—“ Me ae [| rt“‘=‘é‘*éé;sé(é‘(<(a’é‘<CiOé;é;é~é~=~=~*# LE ee Lae LM _ Ss i LC HSE GME Ty Maa MEO Mt a 7 oe ae Lee UREN Le oo =——Er—————UC_ Le Lo ee Te _ Uo LL, ~~ hEr™——————U—CC#N?PF’™ s8§F'§es§e"s == oo DE PE. BU Ee Ve =~ ee Soe hhh #&~ ~~ T
Slide 34: Contribution to Group EBIT from associates
=i il Contribution to Group EBIT Year ended 30 June ($m) Associates: ARG 50 16.5 16.1 Gresham Private Equity - Fund 1 50 11.7 5.9 Gresham Private Equity - Fund 2 67 (1.6) (2.7) Gresham Partners 50 2.7 4.7 Wespine 50 9.8 9.9 Bunnings Warehouse Property Trust 23 Tax on ARG, GPG and Wespine Corporate O
Slide 35: ARG sale completed
e Sale completed 2 June e Pre-tax profit $234.9m, partially taxable e Earnings for 11 months in line with last year
Slide 36: Investments and divestments
- Two divestments: Virgin Active and EROC - Generated $11.9m pre tax - Three remaining investments - capital $26.4m - Investments: - Noel Leeming, Australian Pacific Paper Products, Pacific Print Group - Capital invested $40.9m
Slide 37: Outlook
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Slide 38: Outlook: impact of coal prices and costs
Impact of - lower metallurgical coal prices - higher cost environment (interest rates, fuel) Focus on controllable factors - operating performance in businesses - delivering on growth initiatives Continue to look at many opportunities but patient and disciplined 38] |
Slide 39: SONU R GAR SIERO EAN OER MM PRU ER EN CU IN DOSS SRCAN
SONU R GAR SIERO EAN OER MM PRU ER EN CU IN DOSS SRCAN A) AV POTAD SELIM MLD ASEM Ta oust Ce LE ET IR UO a eae ee LL EE EEE EEE EEE Lo ae Be ea BEA RU OEE: 4 i ehhh Le ee OME Le Go Ry ae LLU ~=—M oe RO Kee Le LM LE Hae Ae Crt i.) rrrrt—“‘=i‘C‘(SCOt#*C(Ci;ié# ee... 4gf==f.=ssese VI OO Le —rt“iéié™OCC
Slide 40: Fo : ee ey
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