Wesfarmers Limited · ASX:WES
Wesfarmers — JP Morgan Australasian Investment Conference 2005
41 slides from Wesfarmers's conference presentation, Oct 13, 2005
Slide 1: Presentation at Investor Briefing, Edinburgh, Scotland
0 Wesfarmers Limited ABN 26 008 884 049 AN/hgw 13 October 2005 The Manager Company Announcements Office Australian Stock Exchange Limited Level 4 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam PRESENTATION AT INVESTOR BRIEFING, EDINBURGH, SCOTLAND — 14 OCTOBER 2005 Attached is a presentation that i
Slide 2: RMU RUL ROU IN TRL
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Slide 3: To provide a satisfactory return to shareholders
To provide a satisfactory return to shareholders October 2005
Slide 4: Financial results summary
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Slide 5: Capital Employed
Capital Employed June 2005 Hardware AS1,792m Energy A$851m | HCA ie Chemicals & Fertilisers AS494m Other AS585m Niorcs=H Industrial & Insurance Safety AS430m Products A$801m _ October 2005
Slide 6: Share Price vs Earnings Per Share
_ “Share Price vs Earnings Per Share . (pre goodwill amortisation and abnormals) EPS Share (cents) Price(A$) 320 + 1 40 280 - L 35 240 L 30 200 - + 25 160 5 20 120 15 80 5 10 40 + -40 186 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 | 15 7 EPS @2@ Girrah EPS @@8 Landmark EPS —— Wesfarmer
Slide 7: Growth Philosophy
Growth Philosophy . Logical Incrementalism Ce rrmr—————SC
Slide 8: Expand existing businesses
Expand existing businesses Portfolio management Ensure the company’s sustainability Se
Slide 9: Corporate Strategy
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Slide 10: Shareholder-focused strategy
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Slide 11: Earnings performance
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Slide 12: Divisional ROC & Capital Employed
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Slide 13: Target returns
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Slide 14: Corporate Strategy
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Slide 15: Hardware
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Slide 16: Quick Facts: warehouse stores and traditional stores
QUICK FACTS 1 34 warehouse stores 80 traditional stores 45,000 product lines 22,000 employees CONTRIBUTION TO GROUP EBITA WAREHOUSES AND STORES No. Warehouses 134 #@ Traditional stores 80 @ WA Salvage stores 18 October 2005
Slide 17: Hardware EBITA and ROCE
2001 2002 2003 2004 2005 tm EBITA ~@- ROCA | October 2008 ©
Slide 18: Hardware Growth Strategies
Hardware” Growth Strategies Continued cash sales growth - tighter retail conditions - market broadening merchandising initiatives e Modest trade sales growth - difficult Australian market e Continued expansion of store network (10-14 new stores pa) e Accelerated store upgrades (25-30 planned for 200
Slide 19: Energy
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Slide 20: Wesfarmers Energy Financial Performance
_ Wesfarmers Energy Financial Performance | EBITA ROCA ASm % 400 40 300 + 200 + 100 + 2001 2002 2003* 2004 2005 : Mm EBITA -@~ ROCA 264, 000 gas customers: 14 remote power stations. * Excludes Girrah A580. 5m in 2003 ‘October 2005
Slide 21: Energy Growth Strategies
Growth Strategies . e Coal - Curragh North completion - Premier sales development - Bengalla production increase e Gas and Power - New gas products and markets - Remote power opportunities October 2005
Slide 22: Insurance
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Slide 23: Insurance Financial Performance
Irance Financial Performance _ EBITA ASm 150 120 5 QUICK FACTS 1,463 employees 105 branches 2001 2002 2003 2004 2005 tm EBITA ~e- ROCA - Octeber 2005
Slide 24: Insurance growth strategies
e Implement optimised reinsurance programme for 05/06 e Bolt-on acquisition opportunities e Target new segments for profitable growth Se
Slide 25: Wesfarmers Industrial and Safety
Wesfarmers industrial and Safety LA Atkins BAKERS COSTE TIR te CNOITTMEAS, Bilackwoods a Packaging House &® @PAYKELS ™ for your anginearing supptias PT HESEL, Mi tior Muilings Fasteners TUE BUS TEATS GEECIA!
Slide 26: Industrial and Safety Financial Performance
} | dustrial and d Safety Financial Performance — 2003 MM EBITA | October 2008 ©
Slide 27: Industrial and Safety Growth Strategies
_. Wesfarmers Indust ia a id Safety : Growth Strategies =” e Appointment of new CEO, Mr Terry Bowen (October 05) e Implementation of business improvement initiatives e Network expansion and consolidation e Benefits from continued spending in mining and infrastructure Getober 2005.
Slide 28: Chemicals and Fertilisers
Slide 29: Chemicals and Fertilisers Financial Performance
Chemicals and Fertilisers - Financial Performance CONTRIBUTION EBITA ROCA TO GROUP EBITA ASm % 8%) 100 20 + 18 + 16 MPP QUICK FACTS © +6 +4 42 ) 2001 2002 2003 2004 2005 mmm EBITA -©- ROCA | October 2005.
Slide 30: Chemicals and Fertilisers Growth Strategies
C emicals and Fertilisers Growth Strategies e Ammonium nitrate expansion - duplication of AN capacity at Kwinana, WA - expansion or duplication at QNP (50%) at Moura, QLD e Capacity expansion through debottlenecking Liquid fertilisers - development of new markets Development of export markets for so
Slide 31: Australian Railroad Group and Wespine interests
Australian Railroad Group (50% interest) GRESHAM Gresham Private Equity NWEEIWENT BOORE WE SI INE Wespine (50% interest) INDUSTRIES October 2005
Slide 32: Australian Railroad Group
RailroadGroup e Encouraging start to 2006 grain season e Improved performance from new contracts e Refurbishment of track and rolling stock to raise efficiency e Earnings growth offset by fuel and labour cost increases Getober 2005.
Slide 33: Private equity investment
e Net investment of AS40m by Wesfarmers e Divestments expected over the next several years « Current commitment AS317m (Wesfarmers AS150m) ” e Good deal “pipeline (Ober 20> —“(i‘“CS™SOSCS
Slide 34: Corporate Strategy
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Slide 35: Capital Expenditure & Depreciation
i We Capital Expenditure & Depreciation _—\" i oti Ye 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 O01 O02 03 04 O5 O6F Capital Expenditure lil Acquisitions =~ Depreciation “Octaber 2005.
Slide 36: Capital Expenditure Programme
apital Expenditure Programme _ 2006 Budget — Total: A$909m Energy $407m Other $4m Insurance $32m Industrial & Safety $31m Hardware $301m Chemicals & Fertilisers $134m
Slide 37: a yy Me
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Slide 38: Corporate Strategy
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Slide 39: Corporate objectives and values
e Financial performance e Safe and rewarding workplaces e Good value products and services e Respect for customers and suppliers e Environmental responsibility e Ethical dealings e Community contribution "October 2005
Slide 40: Key Success Factors
Key Success Factors Financial Focus Strict Disciplines Building Growth-Enabling Competencies Culture October 2005
Slide 41: For all the latest news visit www.wesfarmers.com.au
Wesfarmers — JP Morgan Australasian Investment Conference 2005 on 6ix