Wesfarmers Limited · ASX:WES
Wesfarmers — Investor Day (June 2021)
105 slides from Wesfarmers's investor day presentation, Jun 3, 2021
Slide 1: 2021 Strategy Briefing Day Presentation
3 June 2021 The Manager Market Announcements Office Australian Securities Exchange Dear Manager, 2021 STRATEGY BRIEFING DAY PRESENTATION Following is a presentation that will be given today, Thursday 3 June 2021, at a Strategy Briefing Day in Sydney which is scheduled to commence at 6:30am AWST / 8:
Slide 2: 2021 Strategy Briefing Day
2021 Strategy Briefing Day To be held on Thursday 3 June 2021
Slide 3: Agenda
Agenda Time (AEST) Topic Presenter 8:00 – 8:30am Registration 8:30 – 9:25am Introduction and Group Overview Rob Scott and Anthony Gianotti 9:25 – 10:10am Bunnings Michael Schneider 10:10 – 10:20am Break 10:20 – 11:10am Kmart Group Ian Bailey, Richard Pearson and Pete Sauerborn 11:10 – 11:40am Office
Slide 4: Introduction and Group Overview
Introduction and Group Overview Rob Scott Managing Director, Wesfarmers Limited
Slide 5: 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 6: Superior long-term financial performance
Superior long-term financial performance TSR index Total shareholder return1 (November 1984 = 100) Wesfarmers: 18.9% (CAGR) All Ordinaries Accumulation Index: 10.8% (CAGR) 60,000 50,000 TSR CAGR (%) Wes All Ords 5 year 19.9 10.5 40,000 10 year 14.4 8.9 30,000 20,000 10,000 0 WES TSR (since listing)
Slide 7: Strategies to build trust and drive long-term value creation
Strategies to build trust and drive long-term value creation Climate and environment Ethical sourcing and human rights Development, diversity and inclusion Net zero Scope 1 and 2 emissions Factories covered by the Group’s Aboriginal and Torres Strait Islander ambitions for audit program1 team member
Slide 8: Wesfarmers' value-creating strategies
Wesfarmers’ value-creating strategies Objective OUR OBJECTIVE To deliver a satisfactory return to shareholders VALUE-CREATING STRATEGIES Strengthen existing Secure growth Renew the Ensure sustainability businesses through opportunities portfolio through through responsible operating excellence throu
Slide 9: Significant progress in areas of focus in last three years
Significant progress in areas of focus in last three years FY18 key priorities Progress • Establishment of the Advanced Analytics Centre (AAC) and employment of 400+ data, digital and analytics specialists across the Group • Group data platform operational – enabling customer data insights across di
Slide 10: Evolution of key priorities
Evolution of key priorities FY18 key priorities Renewed priorities Accelerate data and digital Develop a market-leading data 1 capabilities and digital ecosystem Position the portfolio Invest in platforms for 2 for future growth long-term growth Address areas of Accelerate the pace of 3 underperform
Slide 11: Develop a market-leading data and digital ecosystem
1 Develop a market-leading data and digital ecosystem • Opportunity to establish a market-leading digital ecosystem that spans the retail businesses Data and digital ecosystem ‒ Leverage scale and unique assets, including trusted brands, leaders on value, store networks and team Customers ‒ Enhance
Slide 12: Invest in platforms for long-term growth
2 Invest in platforms for long-term growth Investments Portfolio of Adjacent Value-accretive across: existing businesses opportunities transactions Examples: Catch • Building a scalable platform and leading Mt Holland • Leverages WesCEF’s chemical processing Australian marketplace lithium capabiliti
Slide 13: Accelerate the pace of continuous improvement
3 Accelerate the pace of continuous improvement Experience through COVID-19 shows that the Wesfarmers model enables rapid responses to changes in customer behaviour and operating environments – focus on maintaining momentum and agile approach Accelerate investment to reinforce price leadership, adju
Slide 14: Looking forward
Looking forward • Wesfarmers’ portfolio of cash-generative businesses with trusted brands and leading market positions remains well-placed to deliver satisfactory shareholder returns over the long term • Renewed set of key priorities for the Group ‒ Developing a market-leading data and digital ecosy
Slide 15: Group Balance Sheet and Cash Flow
Group Balance Sheet and Cash Flow Anthony Gianotti Chief Financial Officer, Wesfarmers Limited
Slide 16: Recent trading performance
Recent trading performance • The Group’s retail businesses began to cycle the impacts of COVID-19 in the prior year from mid-March, leading to significant volatility in monthly sales growth results • On a two-year basis, all of the retail businesses have continued to record strong sales growth, refl
Slide 17: Approach to delivering satisfactory returns
Approach to delivering satisfactory returns Long-term earnings growth Maintain an appropriately strong and strong cash flow generation and flexible balance sheet Portfolio of well-positioned businesses Strong cash generation and working capital discipline Optimise funding costs, sources and maturiti
Slide 18: Cash flow generation
Cash flow generation • Portfolio of cash-generative businesses with Divisional cash generation (cont. ops)1 strong returns on capital % 160 • Cash generation underpinned by strong 140 earnings growth 120 Average - 103% 100 • Divisional cash generation from continuing 80 60 operations averaged 103% o
Slide 19: Investing for growth
Investing for growth • Focused on strengthening core businesses and driving long-term returns ~$2.8b of growth capital expenditure invested from FY16 to 1H21, including the • Strong capital allocation discipline acquisitions of Kidman, Catch and Geeks2U1 ‒ Robust business case development ‒ Focused
Slide 20: Balance sheet and debt management
Balance sheet and debt management Net financial debt1 • Maintained an appropriately strong and flexible balance sheet to support continued investment $m 7,000 • Access to diverse funding markets with limited 6,000 maturities in any given year 5,000 4,000 ‒ Well-established issuance capability across
Slide 21: Shareholder distributions
Shareholder distributions • Disciplined investment over the long term, Shareholder distributions1 with ongoing focus on shareholder returns Demerger of Coles • Approach underpinned by maximising the $/share Nov 2018 3.50 value of franking credits for shareholders 3.00 2.78 • ~$14.2b of fully-franked
Slide 22: Q&A Group Overview, Balance Sheet and Cash Flow
Q&A Group Overview, Balance Sheet and Cash Flow Rob Scott Anthony Gianotti Managing Director, Wesfarmers Limited Chief Financial Officer, Wesfarmers Limited
Slide 23: Bunnings
Bunnings Michael Schneider Managing Director, Bunnings Group
Slide 24: Committed to long-term sustainable growth and performance
Committed to long-term sustainable growth and performance 16 2,000 BUNNINGS 1,800 14 1995 – 2020 1,600 12 Price Range Sales CAGR 14.8% 1,400 10 Experience Earnings CAGR 18.4% Sales ($b) EBT ($m) 1,200 8 1,000 800 6 600 4 400 2 200 0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Slide 25: Staying relevant to customers' changing lifestyle needs
Staying relevant to customers’ changing lifestyle needs Market size Home Interconnected Improvement Home and Lifestyle; and Outdoor Home Commercial* Living Traditional Improvement Hardware 1980 2021 *Estimated market size: $A79.0b in Australia and $NZ15.0b in New Zealand Wesfarmers Limited | 2021 St
Slide 26: Competitive landscape and dynamics
Competitive landscape and dynamics Multiple drivers • Household disposable income • Renovation activity • Housing churn, value and formation • Weather • Lifestyle and demographic trends • Technology Varied formats • Category specialists • Hard goods mass merchants • Traditional hardware • Supplier
Slide 27: Bunnings' strategic agenda
Bunnings’ strategic agenda Building and Deliver on Price, Making a Data Growing Retaining the Range and Positive and Digital Commercial Best Team Experience Difference Wesfarmers Limited | 2021 Strategy Briefing Day | 26
Slide 28: Building the best team
Building the best team Safety and wellbeing • Consistent improvement in safety over the long term • Using insights and simplified reporting to improve safety • Increased support for team wellbeing • Ongoing focus on keeping everyone safe in a COVID-19 environment Wesfarmers Limited | 2021 Strategy B
Slide 29: Building the best team
Building the best team Best team and culture • Ongoing recruitment of a diverse team with the right skills • Deepening engagement and strengthening culture • Industry-leading retention • Stronger learning and development • Investment in technology making it easier for our team Wesfarmers Limited | 2
Slide 30: Deliver on our lowest prices policy
Deliver on our lowest prices policy Delivering more value • Continue to reinvest in price • Backed by the Bunnings no fuss price guarantee • Disciplined focus on lowest costs to support delivery of lowest prices • Continue to invest in supply chain to meet changing customer needs and deliver more va
Slide 31: Deliver widest range
Deliver widest range Continuing to drive a relevant, winning offer • Expanding products and services in line with customer needs and product innovation • True ranging diamond: category-leading brands • More on-trend products, shift to selling room or project • Investing in the right technology to op
Slide 32: Deliver best experience
Deliver best experience TV PRESS CATALOGUE POWERPASS SOCIAL CONTACT ONLINE PAYMENT CENTRES TERMS IN-HOME IN-STORE CONSULTANCY A TEAM CASH AND EDM WINNING CARD OFFER TRADE ACCOUNT SPECIALISTS MANAGERS SUSTAINABILITY WALK THE AISLE DELIVER TO SITE AND HOME SUPPLY AND INSTALL COMMUNITY AND FUND COLLECT
Slide 33: Digital acceleration
Digital acceleration Continue to accelerate technology that helps us to know our customers better, and develop and implement tools to improve their shopping experiences Continue to increase Continue to Use our data Build team Uplift business the ways customer upgrade core more effectively capability
Slide 34: Growing commercial: customer segments
Growing commercial: customer segments Builders Organisations Trades • Whole of build • Home modification • Easiest to deal with • Deeper customer • Business-to-business • Specialist service engagement • Umbrella organisations • Trusted brands • Fulfilment (e.g. Hire a Hubby) Wesfarmers Limited | 202
Slide 35: Growing commercial: core propositions
Growing commercial: core propositions Delivering solutions that Be consistent and Be the easiest to help customers reliable, doing deal with in every run their what we say we channel business better, will do and that help them grow Value Brand Experience By delivering a unique By bringing products a
Slide 36: Growing commercial: Bunnings Trade
Growing commercial: Bunnings Trade Drive the basics better • In-store and on-site experience • Range, assortment and brands • In-store execution • Deliver in full and on time Leverage technology to serve better • Online and mobile technology • Link PowerPass to all trade brands and formats • Custome
Slide 37: Growing commercial: catering to 'share of ute' and whole of build
Growing commercial: catering to ‘share of ute’ and whole of build • New Parafield store opened in March • A trusted hard surfaces and bathroomware business • Test and learn approach • Caters to both builders and trade segments • First stores outside SA will open in 1H FY22 • Subject to regulatory ap
Slide 38: Making a positive difference: community
Making a positive difference: community Wesfarmers Limited | 2021 Strategy Briefing Day | 37
Slide 39: Making a positive difference: sustainability
Making a positive difference: sustainability • Transitioning to 100% renewable electricity by 2025 • Committed to net zero Scope 1 and 2 emissions by 2030 • Solar currently installed at 74 sites, planned to expand to over 100 sites by June 2022 • 50% of network upgraded to LED, with more to come • R
Slide 40: Key messages and outlook
Key messages and outlook • Continued transformation and evolution of our business to stay connected to customers, team and community • Significant investments in our offer and enabling technologies to drive growth • Rapid acceleration of our digital and data assets and capabilities • Staying true to
Slide 41: Q&A Bunnings
Q&A Bunnings Michael Schneider Justin Williams Managing Director, Bunnings Group Chief Financial Officer, Bunnings Group
Slide 42: Kmart Group
Kmart Group Ian Bailey Managing Director, Kmart Group
Slide 43: Kmart Group scale
Kmart Group scale $9.2B $1.2B revenue online sales1 461 ~1.2B ~255M stores2 units sold transactions Note: statistics relate to the 2020 financial year unless noted otherwise. 1. Includes gross transaction value from Catch. Wesfarmers Limited | 2021 Strategy Briefing Day | 42 2. As at 3 June 2021.
Slide 44: Kmart Group overview
Kmart Group overview Three iconic Australian retail brands with differentiated customer propositions Leading product development Destination for apparel and soft home Online marketplace offering company and trusted brand offering products, with ‘affordable quality’ branded products on both a everyda
Slide 45: Unique scale positions us to drive meaningful change
Unique scale positions us to drive meaningful change • Scale and breadth of operations across Kmart, Target and Catch provides a unique position to drive meaningful change in emission and waste reduction, ethical sourcing and other sustainability priorities • Kmart Group’s relationships with global
Slide 46: Kmart
Kmart Ian Bailey Managing Director, Kmart Group
Slide 47: Kmart vision
Kmart vision Wesfarmers Limited | 2021 Strategy Briefing Day | 46
Slide 48: The fundamentals of Kmart are unlike other multi-category stores
The fundamentals of Kmart are unlike other multi-category stores Competitive advantages A strong brand with a sustainable lowest-price position, underpinned by a lowest-cost underpinned by operating model, market-leading scale and unique product development capabilities market-leading scale A large
Slide 49: Kmart priorities
Kmart priorities Leverage market-leading Improve the online offer Build digitally-enabled size and scale supply chain • Expand market share in existing • Deliver range of initiatives to • Increase efficiency and resilience categories significantly improve the online of sourcing and supply chain cust
Slide 50: Target
Target Richard Pearson Managing Director, Target
Slide 51: Target vision and strategy
Target vision and strategy • Target’s vision is to inspire families to live better by making it easy to afford quality and style • Clear proposition as a destination for apparel and soft home • Key strengths: ‒ Iconic brand with strong awareness ‒ ‘Affordable quality’ the key differentiator ‒ Digita
Slide 52: Significantly simplified operating model
Significantly simplified operating model • Commercial model reset Target stores ‒ Significant reduction in cost base, targeting Number at period end 350 a higher proportion of variable costs 296 289 300 285 283 258 ‒ Reduction in Target’s lease liability from 250 $1.1b in June 2020 to $0.8b as at Ap
Slide 53: Near-term priority to embed and stabilise the operating model
Near-term priority to embed and stabilise the operating model • Priority for FY22 is to maintain momentum and achieve consistent and sustainable profitability: ‒ Accelerate online growth through new customer acquisition, improved app and website experience, and improved fulfilment ‒ Build customer d
Slide 54: Accelerating digital capability will drive future growth
Accelerating digital capability will drive future growth • Digital platform showcasing brand assets founded in quality, value and style • Investing in capabilities to better leverage customer and operational data, and deliver personalised experiences • Clear plan to improve operational efficiency, s
Slide 55: Key messages
Key messages • Reset of commercial model is complete; near-term priority is to stabilise, and achieve consistent and sustainable profitability ‒ Smaller and simpler business with a significantly reduced fixed cost base • Iconic brand with strong awareness • Clear proposition as a destination for app
Slide 56: Catch.com.au
Catch.com.au Pete Sauerborn Managing Director, Catch.com.au
Slide 57: Catch overview
Catch overview Catch’s vision is to be the trusted place where Australians start their shopping journey • Online general merchandise marketplace ‒ Category agnostic ‒ Over 2m SKUs ‒ App and web-based platforms ‒ ~3m active customers • 62,000 sqm automated fulfilment centre in Melbourne • GTV of ~$1.
Slide 58: Building a strong and differentiated customer value proposition
Building a strong and differentiated customer value proposition A wide and growing …with flexible shopping …supported by an established product range... and fulfilment options… subscription program • ~2m SKUs from over • #1 rated retail app in Australia1 • Growing Club Catch 1,900 marketplace (3P) s
Slide 59: Strong growth potential in a large and fragmented market
Strong growth potential in a large and fragmented market • Online penetration is increasing across the Australian non-food online penetration2 (% total sales) $192b1 Australian retail market 15.2 13.9 • Marketplaces are capturing an increasing share of the 9.3 10.3 total online market 5.6 6.9 5.1 4.
Slide 60: Investing to drive and support long-term growth
Investing to drive and support long-term growth • Ongoing investment to accelerate growth through customer-focused initiatives including: ‒ Brand marketing to drive improved awareness ‒ Expanded product selection and exclusive brands ‒ Free shipping for Club Catch members • Investments in FY21 in in
Slide 61: Strategic priorities
Strategic priorities • Develop a customer proposition that is truly designed for the Australian market • Become a trusted business that suppliers choose first • Accelerate growth of subscription • Continue to invest for the long term and scale fulfilment network to improve speed to customer ‒ NSW fu
Slide 62: Kmart Group
Kmart Group Ian Bailey Managing Director, Kmart Group
Slide 63: Key messages and outlook
Key messages and outlook • Kmart Group remains well-positioned to deliver sustainable growth over the long term • Continue to drive the growth of Kmart by leveraging scale and product development capabilities, completing the store conversion program and delivering digital initiatives • Embed and sta
Slide 64: Q&A Kmart Group
Q&A Kmart Group Ian Bailey Aleksandra Spaseska Managing Director, Kmart Group Chief Financial Officer, Kmart Group
Slide 65: Officeworks
Officeworks Sarah Hunter Managing Director, Officeworks
Slide 66: Historical performance
Historical performance We have a strong focus on the health, safety and We have a track record of delivering sales growth in wellbeing of our team and customers $m excess of market growth % 25 3,000 25 2,500 20 20 2,000 15 15 1,500 10 10 1,000 5 500 5 0 0 0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY14 FY
Slide 67: Our customers
Our customers Households Small businesses Education Work and learn from home, Micro, Small, Medium Parents, students, teachers creative hobbies, home and schools technology Wesfarmers Limited | 2021 Strategy Briefing Day | 66
Slide 68: Addressable market
Addressable market Current Potential ~$28b1,2 ~$56b2,3 10%4 Extended Print and Create, Extended Office Supplies, Furniture, Technology, Education, Business, Technology, Print and Create and Connected Customer 1.Based on market analysis conducted by Penfold Research (2021 Market Update). Includes cor
Slide 69: Our roadmap
Our roadmap Wesfarmers Limited | 2021 Strategy Briefing Day | 68
Slide 70: Our team
Our team • Invest in team member safety, health and wellbeing ‒ Increase focus on mental and physical health ‒ Improve safety for customers and team members by using data to identify and address safety risks • Strengthen Officeworks as an employer of choice for all Australians ‒ Flexible work polici
Slide 71: Customer experience
Customer experience • Offer great service across every channel ‒ Enhance online shopping experience through ongoing improvements to the website and mobile app ‒ Refresh the brand and create more inspiring experiences online and in-store that engage customers • Increase customer spend, frequency and
Slide 72: Connecting with our communities
Connecting with our communities • Address climate change ‒ Rollout of energy efficiency and on-site solar generation initiatives ‒ Transition to 100% renewable energy by 2025 ‒ Net zero on Scope 1 and 2 emissions by 2030 • Help our customers shop more ethically and sustainably ‒ Increase customer re
Slide 73: Operational excellence
Operational excellence • Utilise technology to improve customer experience and productivity ‒ Invest in inventory planning and stock management to improve availability and speed of delivery ‒ Invest in digital solutions to improve customer experience and productivity (e.g. Print and Create self-serv
Slide 74: Operational excellence
Operational excellence Available from: https://www.wesfarmers.com.au/strategy-videos-JUN21 Wesfarmers Limited | 2021 Strategy Briefing Day | 73
Slide 75: Growing our business
Growing our business Stationery, Education and Art Print and Create Furniture Technology Geeks2U Wesfarmers Limited | 2021 Strategy Briefing Day | 74 Business
Slide 76: Growing our business
Growing our business Broaden SME offer focusing on Make working from home easy Expand presence in education areas that help customers start, and engaging for both the focused on schools and run and grow their businesses employer and employee education institutions (e.g. marketing capability) Wesfarm
Slide 77: Key messages and outlook
Key messages and outlook • Officeworks remains well-positioned for the future enabled by our ‘every-channel’ model and will continue to focus on anticipating and meeting the changing needs of customers • Execution of strategy to deliver long-term growth for shareholders ‒ Embrace the best practice t
Slide 78: Q&A Officeworks
Q&A Officeworks Sarah Hunter Michael Howard Managing Director, Officeworks Chief Operating Officer, Officeworks
Slide 79: Wesfarmers Chemicals, Energy & Fertilisers
Wesfarmers Chemicals, Energy & Fertilisers Ian Hansen Chief Executive Officer, Wesfarmers Chemicals Energy & Fertilisers
Slide 80: Wesfarmers Limited | 2021 Strategy Briefing Day | 79
Wesfarmers Limited | 2021 Strategy Briefing Day | 79
Slide 81: WesCEF overview
WesCEF overview Chemicals Energy Fertilisers Lithium Description Production and distribution of Production and distribution of Import, production and Construction of a mine and ammonia, ammonium nitrate LPG and LNG and retailer of distribution of fertilisers and co-located concentrator and a (AN), s
Slide 82: Kwinana location
Kwinana location • Over 50 years of continuous WesCEF operations • Strategically located industrial complex with access to: – Dampier to Bunbury natural gas pipeline – Rail corridor – Priority berthing rights – Water and electricity infrastructure – Highly skilled workforce – Reagents produced by ne
Slide 83: Divisional integration
Divisional integration • Power integration CO2 sales • Utilities and Ammonia plant services Air • Environmental Nitric acid plant Ammonia sales to nickel industry management Natural gas AN solution plant AN solution sales for explosives NPK imports1 Prilling plant AN prill sales for explosives Distr
Slide 84: Strategic focus areas
Strategic focus areas Utilising existing chemical processing expertise to deploy technology to deliver satisfactory investment returns and reduce emissions Considering opportunities to leverage existing infrastructure and expand capacity in Chemicals and Energy businesses Supporting Covalent in ensu
Slide 85: ESG perspectives
ESG perspectives Safety Climate and environment Social Total Recordable Injury • Use of abatement catalysts in chemicals Indigenous engagement Frequency Rate (TRIFR, R12) manufacturing processes to reduce • Indigenous employees grown to 2.9% of 10 greenhouse gas emissions headcount 9 • Climate Oppor
Slide 86: Business update and current priorities: Chemicals
Business update and current priorities: Chemicals Business update • Strong demand for EGAN1 by WA customers resulting in lower exports and fertiliser sales • Weakened sodium cyanide export demand in line with expectations as a result of international gold mine closures due to COVID-19 • Planning the
Slide 87: Strong track record in expanding production
Strong track record in expanding production Sodium cyanide annual sales CSBP AN production and WA demand1 ktpa ktpa 100 1,200 Solution Solids WA demand CSBP production 80 900 60 600 40 300 20 0 0 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11
Slide 88: Kleenheat market overview
Kleenheat market overview Kleenheat customer areas LPG LNG NATURAL GAS ELECTRICITY LPG LNG Natural gas retail Kununurra #1 #4 Electricity retail - South Competitive Only WA #1 #2 West Interconnected In contestable position domestic 55% share 28% share System (SWIS) market in WA1 manufacturer Port He
Slide 89: Business update and current priorities: Energy
Business update and current priorities: Energy Business update • Market opportunity for increased domestic LPG sales due to closure of the BP Refinery at Kwinana • Strong focus on customer service to drive continued growth and customer retention in natural gas retail • Completed four-yearly major pr
Slide 90: Business update and current priorities: Fertilisers
Business update and current priorities: Fertilisers Business update • Positive grower sentiment following a strong 2020 harvest and early 2021 season rainfall • Increased competition due to investment in storage infrastructure by competitors CSBP Detect & DecipherAg Tank telemetry • Recent investmen
Slide 91: Mt Holland lithium project
Mt Holland lithium project • Wesfarmers’ expected share of total project capital expenditure Overview of Mt Holland lithium project estimated at approximately $950m1, with capital commitment contingent on receiving all relevant approvals • Indicative construction timeline, subject to approvals: – Pr
Slide 92: Key messages and outlook
Key messages and outlook Strategic focus areas Outlook • Utilising existing chemical processing • Chemicals business is likely to be adversely impacted in the short term expertise to deploy technology to deliver by the rising ammonia index pricing on imports satisfactory investment returns and • Pla
Slide 93: Q&A Wesfarmers Chemicals, Energy & Fertilisers
Q&A Wesfarmers Chemicals, Energy & Fertilisers Ian Hansen Aaron Hood Chief Executive Officer, WesCEF Chief Financial Officer, WesCEF
Slide 94: Wesfarmers Industrial and Safety
Wesfarmers Industrial and Safety Tim Bult Managing Director, Wesfarmers Industrial and Safety
Slide 95: Divisional overview
Divisional overview Description Provider of safety, Industrial, medical and Manufacturer and supplier Risk management and workwear and industrial specialty gas supplier of workwear and uniform compliance service supplies solutions provider Competitive #1 Australia #3 challenger #1 for uniforms and M
Slide 96: Historical earnings and safety performance
Historical earnings and safety performance Earnings performance1 TRIFR2 (R12) EBT ($m) TRIFR (R12) 140 10 9 120 8 100 7 6 80 5 60 4 40 3 2 20 1 0 0 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 1H21 1H 2H • Disappointing performance in recent years, which • TRIFR has improved significantly as a
Slide 97: Business update and priorities: Blackwoods
Business update and priorities: Blackwoods Business update • Closer-to-Customer initiatives, including through regional sales structure • Integrated supply program delivering end-to-end procurement solution • Improved operating efficiency supported by enhanced capability Current priorities and growt
Slide 98: ERP implementation update
ERP implementation update Status update • First deployment live for operations in Victoria and Tasmania • National deployment completed across the finance function • Remaining regional rollout of the Microsoft Dynamics ERP system during CY21 Benefits • Remove constraints from legacy systems • Proces
Slide 99: Customer value proposition
Customer value proposition Available from: https://www.wesfarmers.com.au/strategy-videos-JUN21 Wesfarmers Limited | 2021 Strategy Briefing Day | 98
Slide 100: Business update and priorities: Coregas
Business update and priorities: Coregas Business update • Continued to expand presence in healthcare sector • Ensured critical oxygen supply to hospital groups during COVID-19 • Tailored offers to major customers supporting increased market share • Strength in Trade N Go Gas disruptor offer Current
Slide 101: Business update and priorities: Workwear Group and Greencap
Business update and priorities: Workwear Group and Greencap • Growth from key brands of c. 10% per annum • Growing pipeline of tender activity since FY17, supported by new product innovation and development • New COVID-19 risk consulting services • Targeted uniform growth, with key customers • Consi
Slide 102: Sustainability update
Sustainability update Providing confidence that all aspects of the products and services we deliver are backed by our sustainability credentials 2.6% Workwear Group of Australian Digitisation of ‘all’ rating by Baptist World Aid Privacy training and headcount compliance program, data protection repr
Slide 103: Key messages and outlook
Key messages and outlook • Strategy focused on continuing to improve the customer value proposition, enhance operational capabilities and execute new growth opportunities ‒ Providing confidence in the products and services offering by having the right product with reliable supply ‒ Investing in data
Slide 104: Q&A Wesfarmers Industrial and Safety
Q&A Wesfarmers Industrial and Safety Tim Bult Dan McArtney Managing Director, WIS General Manager Finance, WIS
Slide 105: Wesfarmers
0s Wesfarmers