Wesfarmers Limited · ASX:WES
Wesfarmers — CLSA Investors' Forum 2013
21 slides from Wesfarmers's conference presentation, Sep 24, 2013
Slide 1: CLSA Investors' Forum Presentation
For personal use only 24 September 2013 The Manager Company Announcements Office Australian Securities Exchange Dear Sir, CLSA INVESTORS’ FORUM PRESENTATION Following is a presentation that is to be given at the CLSA Investors’ Forum in Hong Kong on 25 September 2013. Yours faithfully, MARNIE KRONJA
Slide 2: Group Overview, Financial Performance & Strategy
Group Overview, Financial For personal use only Performance & Strategy Terry Bowen, Finance Director CLSA Investors’ Forum September 2013
Slide 3: Wesfarmers – an overview
2 Wesfarmers – an overview For personal use only • Diversified Australian company with strong, established market positions & recognised brands • Eight operating divisions • Employing over 200,000 individuals • Annual revenue of $59.8 billion • NPAT over $2.2 billion • Market capitalisation1 of $48
Slide 4: Strategic framework focused on long-term value creation
Strategic framework focused on long-term value 3 creation For personal use only OBJECTIVE Satisfactory return to shareholders VALUE CREATING STRATEGIES Strengthen existing Secure growth Renew the portfolio Ensure sustainability through businesses through operating opportunities through through value
Slide 5: Delivery of Group objective - TSR outperformance
4 Delivery of Group objective - TSR outperformance TSR Index For personal use only (Sep 2008 = 100) 200 5 year TSR 180 WES: 11.8% (CAGR) ASX 200: 5.8% (CAGR) 160 140 120 100 80 60 40 09/08 09/09 09/10 09/11 09/12 09/13 WES TSR Index ASX 200 Accumulation Index (1)Assumes 100% dividend reinvestment on
Slide 6: Group performance highlights – FY13
5 Group performance highlights – FY13 • Operating revenue of $59.8 billion, up 3.0% For personal use only • Earnings before interest & tax of $3,658 million, up 3.1% • Net profit after tax (NPAT) of $2,261 million, up 6.3% • Earnings per share of $1.96, up 6.4% • Operating cash flows of $3,931 milli
Slide 7: Disciplined capital investment & increased property recycling
Disciplined capital investment & increased property 6 recycling Capital expenditure Year ended 30 For personal use only 2013 2012 % June ($m)1 Coles 1,187 1,193 (0.5) HI & OS 549 587 (6.5) Target 81 65 24.6 Kmart 95 134 (29.1) Insurance 25 34 (26.5) Resources 79 392 (79.8) Industrial & Safety 50 49
Slide 8: Operating cash flows have supported strong investment phase, dividend growth & capital management
Operating cash flows have supported strong investment 7 phase, dividend growth & capital management For personal use only • Capital management will exceed $1.6 billion over five years − Full neutralisation of Dividend Investment Plan – Shares purchased for Employee Share Plan • Capital return, if ap
Slide 9: Funding source diversity with costs reduced & credit metrics improved
Funding source diversity with costs reduced & 8 credit metrics improved Sources1 Maturity profile1 For personal use only 2,000 1,500 1,000 500 A$m - (500) (1,000) FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Bank Bilaterals Capital Markets Syndicated Facility Cash at bank & on deposit Effe
Slide 10: Divisional Overview
For personal use only Divisional Overview Financial Performance & Strategy
Slide 11: Coles
10 Coles Financial performance Financial history For personal use only EBIT $m Year ended 30 June ($m) 2013 2012 % 2,000 Revenue 35,780 34,117 4.9 1,500 EBIT 1,533 1,356 13.1 1,000 R12 ROC % 9.5 8.7 500 0 • Strong customer transaction & unit growth offsetting FY2009 FY2010 FY2011 FY2012 FY2013 selli
Slide 12: Home Improvement & Office Supplies
11 Home Improvement & Office Supplies Financial performance Financial history For personal use only EBIT $m HI - Year ended 30 June ($m) 2013 2012 % 1,200 Revenue 7,661 7,162 7.0 900 EBIT 904 841 7.5 R12 ROC % 25.9 25.9 600 OS - Year ended 30 June ($m) 2013 2012 % 300 Revenue 1,506 1,482 1.6 0 FY200
Slide 13: Department Store Retailing
12 Department Store Retailing Financial performance Financial history For personal use only EBIT $m Kmart - Year ended 30 June ($m) 2013 2012 % 600 Revenue 4,167 4,055 2.8 500 EBIT 344 268 28.4 400 R12 ROC % 25.9 18.9 300 200 Target - Year ended 30 June ($m) 2013 2012 % 100 0 Revenue 3,658 3,738 (2.
Slide 14: Insurance
13 Insurance Financial performance Financial history For personal use only EBIT $m Year ended 30 June ($m) 2013 2012 % 250 200 Revenue 2,083 1,915 8.8 150 EBIT 205 5 n.c. 100 50 R12 ROC % 14.7 0.4 0 (50) (100) FY2009 FY2010 FY2011 FY2012 FY2013 • Higher premiums achieved & lower claims; partially of
Slide 15: Industrial
14 Industrial Financial performance Financial history For personal use only EBIT $m Year ended 30 June ($m) 2013 2012 % 1,200 1,000 Revenue 4,991 5,608 (11.0) 800 EBIT 562 887 (36.6) 600 R12 ROC % 14.1 22.4 400 200 Resources 0 FY2009 FY2010 FY2011 FY2012 FY2013 • Substantially lower export coal pric
Slide 16: Outlook
15 Outlook Retail For personal use only • Investments in the customer offer, store networks & productivity initiatives expected to drive further earnings growth within retail portfolio • Continued focus on working capital & timely recycling of property • Target’s performance expected to progressivel
Slide 17: Outlook (cont.)
16 Outlook (cont.) Resources For personal use only • Increased export sales volumes expected at Curragh; continued focus on cost control • Low export coal prices expected in the short term; long term metallurgical coal market fundamentals remain sound & leveraged to lower AUD Industrial & Safety • C
Slide 18: Questions
For personal use only Questions
Slide 19: Appendices
For personal use only Appendices
Slide 20: Strength of unique network coverage
19 Strength of unique network coverage For personal use only Big Box Retail Discount Dept. Stores 11 15 159 100 Consumer 4 23 4 Staples Retail 80 71 76 559 16 Industrial 61 43 53 260 25 Insurance1 23 136 18 229 90 140 727 33 191 48 117 559 26 50 15 61 36 1 Wesfarmers Insurance also operates out of P
Slide 21: Investor relations contact
For personal use only For all the latest news visit www.wesfarmers.com.au For investor relations queries contact: Mark Scatena T 61 8 9327 4416 M 61 439 979 398 E mscatena@wesfarmers.com.au