Wesfarmers Limited · ASX:WES
Wesfarmers — Debt Investor Presentation (February 2022)
21 slides from Wesfarmers's debt investor presentation, February 2022
Slide 1: 2022 Half-year results debt investor update
2022 Half-year results debt investor update
Slide 2: Group performance overview
Group performance overview 7 Wesfarmers
Slide 3: Wesfarmers' primary objective is to provide a satisfactory return to shareholders
Wesfarmers’ primary objective is to provide a satisfactory return to shareholders We believe it is only possible to achieve this over the long term by: Anticipating the needs of our Looking after our team Engaging fairly with our customers and delivering members and providing a safe, suppliers and s
Slide 4: Group purpose and long-term focus continue to inform our strategies
Group purpose and long-term focus continue to inform our strategies Good progress on sustainability agenda and additional investment supporting the wellbeing of team members and the community through lockdowns $37m 70% >2,600 140GWh $2.5b in team member of operational waste calls by team new agreeme
Slide 5: Financial overview
Financial overview Half-year ended 31 December ($m) 2021 2020 Var % Results excluding significant items1 Revenue 17,758 17,774 (0.1) EBIT 1,905 2,171 (12.3) NPAT 1,213 1,414 (14.2) Basic earnings per share (cps) 107.3 125.0 (14.2) Results including significant items1 NPAT 1,213 1,390 (12.7) Basic ea
Slide 6: Progress on priorities to support long-term growth
Progress on priorities to support long-term growth New market-leading data and Invest in platforms for Accelerate the pace of digital ecosystem long-term growth continuous improvement • New data and digital division led • Continue to direct capital to • Integrated sustainability further by Nicole Sh
Slide 7: Divisional sales performance
Divisional sales performance 1H20 Sales performance ($m) 1H21 Half-year ended 31 December 1H22 Retail sales GTV1 Revenue 1-year growth +1.7% (10.3%) +3.7% +1.0% +29.8% +5.1% 2-year growth +26.5% (5.2%) +28.1% +97.5% +21.1% +10.0% 9,046 9,204 7,275 5,185 4,909 4,652 1,226 1,515 1,571 616 889 830 1,07
Slide 8: Divisional earnings performance
Divisional earnings performance EBT1 ($m) 2021 Var (%) % of divisional EBT1 Half-year ended 31 December 2021 2020 2019 vs 2020 vs 2019 2021 2020 Bunnings 1,259 1,274 938 (1.2) 34.2 71% 62% Kmart Group 178 487 352 (63.4) (49.4) 10% 23% Officeworks 82 100 82 (18.0) - 5% 5% WesCEF 218 160 173 36.3 26.0
Slide 9: Operational highlights
Operational highlights • Pleasing sales growth in the context of significant disruptions to trading conditions during the half and the very strong growth in the prior corresponding period • Good progress continued on the growth of Bunnings’ commercial offer, including through the expansion of Tool K
Slide 10: Working capital and cash flow
Working capital and cash flow • Divisional operating cash flows declined 16.1%, Half-year ended 31 December ($m) 2021 2020 with divisional cash generation of 100%1 Working capital cash movement – Lower earnings growth Receivables and prepayments 189 176 – Higher inventories due to targeted investmen
Slide 11: Capital expenditure
Capital expenditure • Gross capital expenditure of $583m, up $173m on Half-year ended 31 December1 ($m) 2021 2020 Var % the prior corresponding period – WesCEF includes $139m associated with Bunnings 196 219 (10.5) development of the Mt Holland lithium project Kmart Group 81 81 - – Continued investm
Slide 12: Outlook
Outlook • Through COVID-19, Wesfarmers and its businesses have focused on supporting team members, building deeper customer relationships and community trust, while continuing to invest for long-term growth – This ongoing focus, combined with a strong balance sheet and portfolio of cash-generative b
Slide 13: Debt management
Debt management Wesfarmers
Slide 14: Strong balance sheet and credit ratings
Strong balance sheet and credit ratings Key principles Half-year update • Maintaining prudent capital structure and • Continued to reposition the balance sheet to strong credit rating is important to optimise cost of funds and debt maturity Wesfarmers profile • Strong credit ratings – Distributed $2
Slide 15: Pro-active debt management
Pro-active debt management • Continued focus on optimising debt maturity Debt maturity profile1 $m profile and maintaining liquidity headroom 2,000 provided by bilateral bank facilities 1,000 – Repaid €600m (A$866m) seven-year Euro bonds at 4.7%, which matured in October 2021 0 – Ongoing extension o
Slide 16: Debt capital markets diversity
Debt capital markets diversity • Issued €600m (A$938m) in sustainability-linked twelve-year Euro bonds in October 2021 DCM geographical sources1 – The interest rates on the bonds are linked to progress against specific renewable energy and emissions performance targets (consistent with the domestic
Slide 17: A leading Australian issuer of sustainable finance
A leading Australian issuer of sustainable finance March 2020 June 2021 October 2021 A$ sustainability-linked loan A$ sustainability-linked bond € sustainability-linked bond • Achieving proportional representation for • Increasing the use of renewable electricity in the Group’s retail Aboriginal and
Slide 18: Management of lease portfolio
Management of lease portfolio • Lease liabilities totalled $7.2b and ($m) 1H22 FY21 1H21 represented 70% of Group fixed financial Bunnings 3,854 3,738 3,822 obligations as at 31 December 2021 Kmart Group 2,794 2,817 2,875 • The planned network changes within the Kmart and Target store network comple
Slide 19: Dividends & capital management
Dividends & capital management Key principles Half-year update • Dividend distributions determined based on • Fully-franked half-year ordinary dividend of franking credit availability, earnings, credit $0.80 per share metrics and cash flow • Dividend record date: 23 February 2022 • Dividends are not
Slide 20: Questions
Questions
Slide 21: Wesfarmers
We Wesfarmers
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