Wesfarmers Limited · ASX:WES
Wesfarmers — 1H FY2017 Earnings Presentation
34 slides from Wesfarmers's earnings presentation, Feb 15, 2017
Slide 1: 2017 Half-year Results Supplementary Information
2017 Half-year Results Supplementary Information To be read in conjunction with the 2017 Half-year Results Briefing Presentation to be held on Wednesday, 15 February 2017
Slide 2: Presentation outline
Presentation outline Item Page Group Balance Sheet 3 Coles 6 Home Improvement 10 Department Stores 13 - Target 14 - Kmart 18 Officeworks 22 Industrials 25 2017 Half-year results | 2
Slide 3: Group Balance Sheet
Group Balance Sheet
Slide 4: Group management balance sheet – overview
Group management balance sheet – overview ($m)1 1H16 FY16 1H17 Commentary Inventories 6,580 6,260 6,852 Receivables & prepayments 1,810 1,950 2,083 Detailed working capital discussion provided on slide 5 Trade & other payables (7,063) (6,492) (7,624) Other 520 411 580 Net working capital 1,847 2,129
Slide 5: Balance sheet – working capital
Balance sheet – working capital ($m)1 1H16 FY16 1H17 Commentary2 Inventories 6,580 6,260 6,852 • Acquisition of Homebase, partially offset by reduction in inventory at Target Receivables & prepayments 1,810 1,950 2,083 • Higher average selling prices in Resources • Acquisition of Homebase • Lower in
Slide 6: Coles
Vintace CeLars spirit Financial Services
Slide 7: Coles network
Coles network as at 31 December 2016 Selling Area Supermarkets (sqm) 1,804,073 6 7 11 Liquor (sqm) – ex hotels 210,479 163 232 77 94 113 4 80 134 791 Supermarkets 56 34 7 46 872 Liquor stores 250 278 1 89 Hotels 215 194 695 Convenience 206 208 16 15 Coles 2017 Half-year results | 7
Slide 8: Store network movements
Store network movements Open at Open at Opened Closed Re-branded 30 June 2016 31 Dec 2016 Supermarkets Coles 786 8 (5) 1 790 Bi-Lo 1 - - - 1 Total Supermarkets 787 8 (5) 1 791 Liquor 1st Choice 97 2 - - 99 Vintage Cellars 81 - - - 81 Liquorland 687 11 (6) - 692 Hotels 89 - - - 89 Total Liquor 954 13
Slide 9: Revenue reconciliation
Revenue reconciliation 2016 2015 Half-year ended Food & Food & Convenience Total Convenience Total 31 Dec ($m) Liquor Liquor Segment revenue 16,878 3,178 20,056 16,496 3,591 20,087 (Gregorian)1 Less: Other revenue (226) (6) (232) (212) (7) (219) Headline sales 16,652 3,172 19,824 16,284 3,584 19,868
Slide 10: Home Improvement
Home Improvement BUNNINGS BUNNINGS BUNNINGS TRADE H@MEBASE
Slide 11: Home Improvement: store network locations
Home Improvement: store network locations as at 31 December 2016 Australia & New Zealand United Kingdom & Ireland Smaller Warehouse Trade Homebase format stores Centres stores stores New Zealand 26 20 7 Republic of Ireland 11 New South Wales / ACT 72 16 7 Northern Ireland 9 Queensland 42 11 7 Scotla
Slide 12: Home Improvement: store network movements
Home Improvement: store network movements Open at Open at Under 30 June Opened Closed 31 Dec Expanded construction 2016 2016 31 Dec 2016 Australia & New Zealand Bunnings Warehouse 244 5 (1) 248 - 9 Bunnings smaller formats 70 4 (1) 73 - 1 Bunnings Trade Centres 33 - - 33 - 1 UK & Ireland (acquired 2
Slide 13: Department Stores
Department Stores
Slide 14: Target
Target
Slide 15: Target network
Target network as at 31 December 2016 2 1 185 Large 119 Small 34 29 21 12 18 10 57 41 48 25 5 1 Target 2017 Half-year results | 15
Slide 16: Target network
Target network Open at Open at Opened Closed 30 June 2016 31 Dec 2016 Large 186 1 (2) 185 Small 120 - (1) 119 Total 306 1 (3) 304 Target 2017 Half-year results | 16
Slide 17: Revenue reconciliation
Revenue reconciliation Half-year ended 31 December ($m) 2016 2015 Segment revenue (Gregorian) 1,623 1,972 Less: Non sales revenue (1) - Headline sales (Gregorian) 1,622 1,972 Add: Gregorian adjustment1 36 36 Headline sales revenue (Retail)2 1,658 2,008 1 Adjustment to headline sales revenue to refle
Slide 18: Kmart
Kmart
Slide 19: Kmart network
Kmart network as at 31 December 2016 2 3 214 Kmart stores 250 KTAS centres 44 54 24 26 15 17 56 77 49 69 15 5 4 4 Kmart 2017 Half-year results | 19
Slide 20: Store network movements
Store network movements Open at Open at Opened Closed 30 June 2016 31 Dec 2016 Kmart 209 5 - 214 Kmart Tyre & Auto 248 5 (3) 250 Kmart 2017 Half-year results | 20
Slide 21: Revenue reconciliation
Revenue reconciliation Half-year end 31 Dec ($m) 2016 2015 Segment revenue (Gregorian) 2,996 2,750 Less: Non sales revenue (1) (1) Headline sales (Gregorian) 2,995 2,749 Add: Gregorian adjustment1 60 50 Headline sales revenue (Retail)2 3,055 2,799 1 Adjustment to headline sales revenue to reflect re
Slide 22: Officeworks
| Officeworks
Slide 23: Officeworks network
Officeworks network as at 31 December 2016 1 163 Officeworks Stores 3 Fulfilment Centres 29 15 1 1 Call Centre 9 1 Print Hub 57 1 1 1 50 1 2 Officeworks 2017 Half-year results | 23
Slide 24: Store network movements
Store network movements Open at 30 Open at Opened Closed June 2016 31 Dec 2016 Officeworks 159 4 - 163 Officeworks 2017 Half-year results | 24
Slide 25: Industrials
Industrials eo 7] vy) Wesfarmers Chemicals, Wesfarmers Energy & Fertilisers Industrial and Safety Wesfarmers Resources
Slide 26: Chemicals, Energy & Fertilisers - Sales, pricing & production
Chemicals, Energy & Fertilisers - Sales, pricing & production kt Strong Fertiliser sales volumes $/t Significant decline in ammonia pricing 1,200 800 1st Half 2nd Half Ammonia (US$, FOB Middle East) 700 Ammonia (A$, FOB Middle East) 1,000 600 800 500 776 866 600 713 779 400 400 300 200 200 220 260 2
Slide 27: Industrial & Safety - Distribution network
Industrial & Safety - Distribution network as at 31 December 2016 445 locations with 189 branches, 198 gas distribution points & 58 Workwear franchises 128 Blackwoods 90 Workwear Group (incl. 58 franchised) 3 3 217 Coregas (incl. 198 distribution points) 1 1 22 63 10 Greencap 24 17 25 1 16 1 6 35 5
Slide 28: Resources - Global environment: current & short-term trends
Resources - Global environment: current & short-term trends • World blast furnace iron production stable – Steel prices have not moved to same extent as raw materials • Metallurgical coal market continues to be volatile – Recent spot prices for metallurgical export coal have traded lower – Inventory
Slide 29: Australian coal market prices
Australian coal market prices Australian steaming coal prices Australian hard coking coal prices US$/tonne (nominal) FOB Australia (annual versus spot) US$/tonne (nominal) FOB Australia (annual versus spot) 250 200 150 100 50 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 JP
Slide 30: Curragh export metallurgical sales product mix
Curragh export metallurgical sales product mix 1H FY17 Actual FY17 Forecast 4.1m tonnes 8.0 – 8.5m tonnes Semi Hard Semi 23% 39% 26% Hard 38% PCI PCI 39% 35% 2012/2013 Actual 2012/2013 Actual Resources 2017 Half-year results | 30
Slide 31: Resources - Coal production volumes
Resources - Coal production volumes Half-year ended (‘000 tonnes) Mine Ownership Coal Type Dec 2016 Dec 2015 Curragh, QLD 100% Metallurgical 3,919 3,986 Steaming 1,899 1,791 Bengalla, NSW1 40% Steaming 1,714 1,680 Total1 7,532 7,457 1 Wesfarmers attributable production. Resources 2017 Half-year resu
Slide 32: Resources - Coal sales volumes
Resources - Coal sales volumes Half-year ended (‘000 tonnes) Mine Ownership Coal Type Dec 2016 Dec 2015 Curragh, QLD1 100% Metallurgical 4,127 4,175 Steaming 1,888 1,819 Bengalla, NSW2 40% Steaming 1,725 1,733 Total1 7,740 7,727 1 Curragh metallurgical coal sales excludes traded coal. 2 Wesfarmers a
Slide 33: Resources financial summary
Resources financial summary Half-year ended 31 December1 ($m) 2016 2015 Commentary Export revenue Produced – Realised 699 587 Favorable impact of higher export sale prices partially offset by higher Australian dollar and locked in hedge book losses – Hedge book losses (45) (70) Total 654 517 Export
Slide 34: Wesfarmers
os Wesfarmers