Wesfarmers Limited · ASX:WES
Wesfarmers — Non-Deal Roadshow (November 2002)
20 slides from Wesfarmers's roadshow presentation, Nov 18, 2002
Slide 1: Wesfarmers Investor Presentation
4 Wesfarmers Limited ABN 28 008 984 049 18 November 2002 Company Announcements Office Australian Stock Exchange Limited Dear Sir WESFARMERS INVESTOR PRESENTATION Attached is a slide presentation to be given in Asia and Europe from 18 to 27 November 2002. Yours sincerely LJKENYON COMPANY SECRETARY We
Slide 2: Background and Corporate Strategy
Background and, | Corporate Strateg'
Slide 3: Objective and Logical Incrementalism
(before Goodwill Amortisation) 2000/2001 $488 million 27.0% 9.5% 2.3% 10.8% SOB. 2001/2002 $831 million 2B 5% Other | Rural and Insurance Fertiliser & Chemicals Hardware industrial & Safety Objective To provide a satisfactory return to shareholders : Logical Incrementalism 1. Improve performance of
Slide 4: Objective setting
Objective setting Performance measures Performance targets Management accounts Cash management Corporate planning Project evaluation Remuneration
Slide 5: NPAT, Net Operating Cashflow and Dividend
Yc AEE ji Le ae, 1998 1999 2000 2001 2002 NPAT 2 Net Operating Cashfiow = Net Cash Dividend
Slide 6: Capex, Acquisitions and Depreciation
i Capex 7% Acauisitions Depreciation Wile 1998 1999 2000 2001 2002 Years
Slide 7: Share Price and Operating Profit After Tax
1999 2000 2001 2002 Years Le a: (GZ 4 Le ve B5 86 87 88 B9 90 91 92 93 S4 95 96 97 98 99 OO 01 62 Share Price ™@ Operating Profit After Tax
Slide 8: Financial focus and Financial Performance & Outlook
1. Financial focus 2. Strict disciplines 3. Building growth-enabling competencies 4. Culture Financial Performance & Outlook Three Months to 30 Se
Slide 9: Performance Summary
Slide 10: Divisional EBITA
Strong qrowth in Hardware Satisfactory performance - Coal Strong performance from Gas businesses Synergy and scale benefits in Rural businesses Strong premium Income growth — insurance Strong growth on 2001 — industrial Products Solid performance from Fertilisers and Chemicals Key Business
Slide 11: Bunnings - Australia's largest supplier of home improvement
Bunnings — Australia’s largest supplier of home improvement and building products 23/ retail outlets in Australia & New Zealand » Including 112 warehouse Stores Sales of $3.1 billlon Rollout 8 to 12 warehouse stores pér annum Key Issues » Focus on integration of BBC and growth of network y Revenue a
Slide 12: Energy: coal and gas operations
3.6mt domestic steaming at Collie, WA 6.0mt domestic steaming & export coking at Curragh, QLD 5.2mt export steaming at Bengalla, NSW (40% owned) Two thirds of coal production under long term contract 370,000t LPG extraction plant in WA, for domestic & export Australia-wide LPG distribution business
Slide 13: Coal and Gas
Coal » Coal volumes and prices ~ Premier restructuring Gas >» Higher LPG prices I. Japan Benchmark JRP US$/Tonne FOB nominal 6G a 50 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 1 02
Slide 14: LPG propane and butane prices
Cy Revi B00 00. 325.00 006 He00 000 Source: Barlow Jonker CP 2002 USS /HE 340.00 320.00 300.60 280.00 260.00 240.00 226.00 200.00 180.00 160.00 Dee Jan. Fab metees PROPANE «= « = Moving Clave | weve BUTANE © ¢ -% © Movingl4 ave
Slide 15: Rural and Insurance
> Approximately 420 branches & agencies across Australia >» Services include: » Wool and livestock agency » Merchandise and fertiliser sales > Real estate » Insurance and finance » Integration of IAMA operations proceeding as planned » Full benefits of merger expected in years ahead » Strong custome
Slide 16: Industrial and Safety
» Acguired as part of the Howard Smith takeover - Australia’s market leaders in supply of Industrial & Safety Products More than 260 outlets in Australia and New Zé@aland Revenue & earnings in line with expectations Key Issues - Commencement of major infrastructure projects Improve or divest under p
Slide 17: Fertilisers and Chemicals
~ Fertiliser production for WA agricultural market > Aramonia, ammonium nitrate, sodium cyanide and industrial chemicals production Key Issues » Patchy seasonal conditions » industry rationalisation
Slide 18: 2003 Outlook
2003 Outlook Overall positive outlook Continued strong revenue and earnings growth in Hardware Coal and gas earnings growth subject to international price trends Rural division ~ drier seasonal conditions, focus On Managing costs and achieving scale benefits
Slide 19: June 2003 Proforma divisional outlook
> Improving trading conditions for Industrial and Safety businesses ry Increased profits from chemicals business » Continued scale down of the Sotico operations June 2003 Proforma Total $328.1m $37,.2m ‘ (, $119.5m $2.5m $24.71 $118.9m $25.3m Other ral and Insurance Fertitiser & Chemicals Energy WE
Slide 20: www.wesfarmers.com.au
www.wesfarmers.com,.au_