Wesfarmers Limited · ASX:WES
Wesfarmers — Macquarie Australia Conference 2022
24 slides from Wesfarmers's conference presentation, May 3, 2022
Slide 1: Macquarie Conference Presentation and Address (ASX cover letter)
3 May 2022 The Manager Market Announcements Office Australian Securities Exchange Dear Manager, MACQUARIE CONFERENCE PRESENTATION AND ADDRESS Please find attached a copy of the presentation by the Managing Director of Wesfarmers Limited, Rob Scott, that is to be given at the Macquarie Australia Conf
Slide 2: Macquarie Conference 2022
Macquarie Conference 2022 To be held on 3 May 2022
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 suppliers and sourcin
Slide 4: Superior long-term financial performance
Superior long-term financial performance Wesfarmers’ long-term TSR Index from November 1984 to April 2022 total shareholder returns in excess of Wesfarmers and All Ordinaries Accumulation Index the market Since listing: WES +19.2% pa Index +10.7% pa Last 10 years: WES +14.2% pa Index +10.0% pa Last
Slide 5: Strong performance through COVID and positioned for future growth
Strong performance through COVID and positioned for future growth Operating performance Actions for future growth Sales and earnings Increased operational New Group Progress on Mt Holland growth agility assets lithium project 17.5% R12 divisional Rapidly responding to Established new Commenced const
Slide 6: Retail divisions well positioned for current operating conditions
Retail divisions well positioned for current operating conditions Wesfarmers’ attributes… enable it to meet changing customer needs… Economies of scale Value credentials Household Deeper digital Omnichannel on everyday items budgets adjusting engagement experience Commercial discipline …and adapt to
Slide 7: Priorities aligned with the Wesfarmers Way
Priorities aligned with the Wesfarmers Way Wesfarmers objective is to provide a satisfactory return to shareholders Four value-creating Strengthen existing Secure growth Renew the Ensure strategies to deliver businesses opportunities portfolio sustainability superior long-term through operating thro
Slide 8: Evolving portfolio demonstrates active allocation of capital towards long-term growth
Evolving portfolio demonstrates active allocation of capital towards sustainable long-term growth Strengthened WesCEF with Covalent Lithium and new net zero commitment Established Health division through API acquisition Established Wesfarmers OneDigital (Including Catch from 1 July 2022) Continued d
Slide 9: Building a market-leading data and digital ecosystem
Building a market-leading data and digital ecosystem The Group’s brands provide a strong OneDigital will provide additional benefits and a single view base of customer connections of the customer Market-leading retail brands Transactions 40 million+ per month More visits and deeper customer Greater
Slide 10: Building a market-leading data and digital ecosystem
Building a market-leading data and digital ecosystem Provides data and digital capabilities that are complementary and incremental to the retail businesses, generating value for customers and divisions Design Value Each division retains responsibility for its own OneDigital established to deliver in
Slide 11: Platforms for growth – continued development of WesCEF
Platforms for growth – continued development of WesCEF Existing businesses Establishing new New commitments continue working with long-term business lines to pursue WesCEF’s decarbonisation customers to provide and explore journey towards key products to adjacent net zero critical industries opportu
Slide 12: Platforms for growth – Mt Holland lithium project
Platforms for growth – Mt Holland lithium project Good progress on the construction of the mine, concentrator and refinery to support production of sustainably-sourced battery-grade lithium hydroxide (LiOH) Construction of the mine and concentrator has commenced. Village at Mt Holland now complete.
Slide 13: Platforms for growth – Health division
Platforms for growth – Health division Wesfarmers completed its acquisition of Australian Pharmaceutical Industries on 31 March 2022 Total cash consideration of Priceline Pharmacy store. API distribution centre. $774m ($1.55 per share) Initial capital employed Strengthen consumer Platform for of c.
Slide 14: Key messages
Key messages • The Group is well positioned for the post-COVID environment, having strengthened the capabilities of existing divisions and with new platforms for future growth • Wesfarmers’ retail divisions are well equipped to manage inflationary pressures and view this as an opportunity to profita
Slide 15: Questions
Questions
Slide 16: Appendix: Accelerating the pace of continuous improvement – Sustainability
Appendix: Accelerating the pace of continuous improvement – Sustainability Wesfarmers’ purpose and long-term focus continue to inform our strategies ESG priorities 14.3% 140GWh 3.4% 70% €600m reduction in per annum renewable Indigenous of operational sustainability-linked Scope 1 and electricity agr
Slide 17: Wesfarmers
e Wesfarmers
Slide 18: Managing Director's Address
2022 MACQUARIE CONFERENCE MANAGING DIRECTOR’S ADDRESS MANAGING DIRECTOR’S ADDRESS Good afternoon everyone, it’s good to be able to see many of you again in person, and thanks for making the time to join this session. Today I will provide some reflections on Wesfarmers’ performance and actions over t
Slide 19: Managing Director's Address – COVID impacts and online sales
Total online sales across Bunnings, Kmart, Target and Officeworks more than tripled over the two years to our most recent half year results, and the gross transaction value (“GTV”) of our Catch Marketplace has almost doubled since we acquired the business. In responding to COVID disruptions, our bus
Slide 20: Managing Director's Address – pricing and cost pressures
This means we can mitigate some of the cost pressure that others cannot. As an EDLP retailer, we have a relentless focus on delivering lowest prices. We operate in competitive markets and always want to be lowest price. This will become even more important as customers focus more on value. We have s
Slide 21: Managing Director's Address – OneDigital and capital allocation
The development of Wesfarmers OneDigital provides a new source of competitive advantage that will support superior performance across the divisions and opens new avenues for growth over the long term. While all divisions will retain full responsibility for their own data and digital needs, OneDigita
Slide 22: Managing Director's Address – OneDigital capabilities
Secondly, it will provide incremental benefits to the existing divisions and their customers through the insights available via the shared data asset, and by leveraging benefits of the subscription program as well as other specialist digital services and partnerships. And lastly, as a purely digital
Slide 23: Managing Director's Address – Mt Holland
Importantly, Mt Holland remains one of only a small number of vertically-integrated projects where sustainably-sourced, battery-grade lithium hydroxide will be produced from a single origin. The project is supported by strong fundamentals with first production in the second half of calendar year 202
Slide 24: For more information
For more information: Media Investors Rebecca Keenan Simon Edmonds Media and Public Affairs Manager Investor Relations Manager +61 8 9327 4423 or +61 402 087 055 +61 8 9327 4438 or +61 409 417 710 rkeenan@wesfarmers.com.au sedmonds@wesfarmers.com.au Wesfarmers Limited 2022 Macquarie Conference Manag