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Slide 2: Presentation Outline
Presentation Out! ne Group Performance Divisional Comments Business Development Outlook for 2004 003 Annu Richard Goyde John Gillam David Robb Peter Davis Bob Denby Mark Allison Bob Buckley Gene Tilbrook Michael Chaney
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Slide 4: Performance Summary
Performance Summary 5.0 7,385.6 7,753.4 Operating Revenue Net Profit (before goodwill) 493.3 623.9 26.5 Goodwill Amortisation (79.3) (85.7) 8.1 Net Profit (after goodwill excluding Girrah) 413.9 481.9 16.4 1g Earnings Per Share (before g/will ex. Girrah) (cents) 138.2 150.7 9.0 2003 Annual Results
Slide 5: Group performance highlights
» Strong performance from Energy and Indu Safety » Continued growth in hardware business » Improved performance from CSBP » Pisces / Girrah transaction » Rural services business negatively impacted by the drought 2003 AnnualResults POPES 5
Slide 6: Profit on Sale of Non-trading Items
Profit on Sale of Non After Tax ($m). Hardware Chemicals & Fertilisers 0.1 1.7 * Excluding Girrah
Slide 7: Divisional EBITA
Divisional EBITA . Year Ended 30. June ($m) Hardware 297.1 349.0 Rural Operations & Insurance 89.2 76.3 Chemicals & Fertilisers 78.9 2003 Energy EBITA Excludes Earnings on Sale of Girrah 003 Annual Results = 7
Slide 8: Divisional ROC
Divisional ROC Hardware 349.0 Rural Operations & Insurance 76.3 439.8 17.4 17.7 Chemicals & Fertilisers 78.9 491.4 16.1 14.3
Slide 9: Earnings, cashflow and dividend
(earnings, cashflow and dividend px SS 135 + 1999 2000 2001 2002 2003 EPS (before goodwill amortisation) * Cashflow 4 Dividend * Excluding Girrah : oO Ae a yo a nnual Results 2 Le, Ok
Slide 10: Return on equity (before goodwill amortisation)
(before goodwill amortisation) 20 1i5 10 1999 2000 2001 2002 2003* —— Target * Excluding Girrah 2003 Annual Results ee HO
Slide 11: Net Debt/Equity
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Slide 12: Interest Cover Ratio
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Slide 13: Capital Management
Capital Management » On market buyback of up to five percent of Wesfarmers shares * At 30 June 2003, approximately 4.1 million shares repurchased at an average price of $24.12 13
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Slide 15: CSBP
wy, y 7 CSBP i wo Chemicals nll CSBP Fertilisers 2003 Annual Results ,
Slide 16: 2003 Performance Summary
2003 Performance Sum Chemicals Sales volumes Revenue Fertilisers Sales volumes Revenue Company Safety EBITA EBITA / Capital Year Ended 30 June | (t’000) ($m) (t’000) ($m) (R12 LTIFR) ($m) (%) 412 171 1,038 292 8.8 73.5 14.3 +3 -50 +5 -3.4 +5.4 +1.8 2003 Annual Results 16
Slide 17: Sales Volumes - Five Year Trend
Sales Volumes — 5 Year Trend Ss rt—<ise million tonnes 1.8 1.5 1.2 | y : | ‘ui / L SN 0.9 ju a 0. 6 ; y : AN y 0.3 0.0 1999 2000 2001 2002 2003 8 Chemicals WA Fertilisers Non WA Fertilisers
Slide 18: EBITA and EBITA/Capital
2 ye Ze AM 1 i d l l og 1999 2000 2001 2002 2003 EBITA —@ EBITA/ Capital ! Ce a
Slide 19: Chemicals Key Influences 2003
Chemicals | Key Influences 2003 » Solid resource sector conditions » Short term softness in local ammonia offta » First ammonia export » Good ammonia / AN plant performances * Kwinana ammonia plant on-line time high * Kwinana nitric acid plant capacity expanded * Queensland Nitrates operating at des
Slide 20: Chemicals Outcomes 2003
Chemicals Outcomes 2003 » Ammonia and AN contribution 3% higher. ® Planned AN shutdown in October 2002 » New AN markets » Ammonia volumes restricted » Sodium cyanide contribution 17% lower « Slow ramp up from new solids plant » Overall earnings contribution in line with 2002 20 2003 Annual Results
Slide 21: Chemicals Outlook 2004
Chemicals Outlook 2004 >» Firm demand for ammonia in WA customer base ® Export excess production ® Capacity upgrade in planned shutdown » Solid resource sector demand for AN » Improving sodium cyanide conditions » Evaluating growth opportunities 21 2003 Annual Results
Slide 22: Fertilisers Key Influences 2003
Fertilisers Key Influences 2003 » Poor 2002 harvest « No non-WA wholesale sales ® Patchy demand » Solid sales programme ® Distributor support « Competitive domestic pricing « Improved range of products and services » Continued growth in liquid fertiliser » Cost base and supply chain improvements 22
Slide 23: Fertilisers Outcomes 2003
Fertilisers Outcomes 2003 » 4% increase in WA sales volumes » Significant lift in liquid fertiliser volumes ® Investment in storage and handling facilities » Commissioned Esperance production facility » Improved overall contribution * Cost base and supply chain improvements 23 2003 Annual Results
Slide 24: Fertilisers Outlook 2004
Fertilisers Outlook 2004 » Positive outlook for 2003 harvest in WA » Highly competitive WA market » Focus on strong market offer » Product range development ® Increased sales and service presence » Further cost base and supply chain improvements » Seeking new markets for proprietary fertilisers 2003
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Slide 26: Wesfarmers Energy businesses
Wesfarmers Premier Coal URRAGH WESFARMERS LPG AIR LIQUIDE ea WEE TORN BLYOTUOLIS, STATEWEST POWER 26
Slide 27: Energy 2003 Environment: Saudi Contract Price
Energy 2003 Environ Saudi Contract Price _ US$/t 400 350 300 250 200 + 150 100 50 0 + oT Jun- Jun- Jun- Jun- Jun- Jun- Jun- Jun- Jun- Jun- jun- 93 94 95 96 97 98 99 00 01 02 03 — PROPANE «BUTANE AV. PROPANE PRICE 003 Annu ao-t------- 27
Slide 28: Hard Coking Coal Prices
Hard Coking Coal Prices JRP US$/Tonne FOB nominal 83 85 87 89 91 93 95 97 Japanese Financial Year a y 99 28
Slide 29: Thermal Coal Prices
Energy 2003 Env Thermal Coal Prices US$/Tonne FOB nominal 50 40 5 30 7 20 5 40 4 0 T T T T T T T T Jan-87 Jan-89 Jan-91 Jan-93 Jan-95 Jan-97 Jan-99 Jan-01 Jan-03 ~~ JPU Reference Price -- Spot Price Source: Barlow Jonker 2003 Annual Results 29
Slide 30: Rolling Month Lost Time Injury Rates
Rolling 12 Month Lost Time Trju 10 COAL 02 03. Curragh 2003 Annual Results 02 03 Premier industry Average 10 ‘a TA Oo. O 02 03 Kleenheat 02 03 ALWA May 03 Industry Average
Slide 31: Production
Production WLPG Kt 400 14 12 300 200 5 100 5 0 1 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 # Premier @Curragh © Bengalia (40%) a 31 My Ty Le ae) Gees 2003 Annual Results —__ TT
Slide 32: Sales Volumes
Sales Volumes 2003 versus 2002. Kleenheat Gas Wesfarmers LPG » Air Liquide* +4% » Premier -8% » Curragh +2% Bengalla +10% *Pipeline Sales 32 TT Ge
Slide 33: EBITA
250 200 150 100 EBITA EB & First Half Second Half* * Excludes Girrah $80.5m in 2003 2003 Annu : 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003
Slide 34: Energy Highlights 2003
Energy Highlights 2003 Record Kleenheat profit » Record WLPG production ALWA HIsmelt contract signing » Mid West power project commencement 2003 Annual Results 34
Slide 35: Energy Highlights
Energy Highlights 200 » Record Curragh profit » Curragh North deposit secured » Girragh deposit sold » WA base load power bid underway » Premier’s first mineral sands sales contract » Successful Oracle system implementation 003 Annual Results = 35
Slide 36: Energy Issues
J Energy Issues i , ey We » LPG prices and demand e Prices down 25% ® Excise uncertainty * Refinery closure . 7 36 Mii ye Uy 2003 Annual Results
Slide 37: Energy Issues 2004
Energy Issues 2004 | » Coal volumes, prices, costs e Export sales increase e Prices remain under pressure « A$14m dragline shutdown - 4* Qtr 04 financial year » Exchange rates e Hedge program (90% year 1 to 10% year 5) 37
Slide 38: Man
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Slide 39: Bunnings Warehouse
warehouse LOWEST PRICES WIDEST RANGE BEST SERVICE 2003 AnnualResults oo Bg
Slide 40: Financial Overview
Financial Overview 11 Month Comparison (Aug — ($m) 2002 2003 Revenue* 2,955.2] 3,225.0 9.1% EBITA 289.0 329.1 13.9% Amortisation 46.0 46.0 0.0% EBIT 243.0 283.1 16.5% EBITA/Sales Ratio 9.8% 10.2% 0.4% * Includes $99 million of property sales in 2003 and $39 million in 2002 40 2003 Annual Results
Slide 41: Financial Overview (cont)
Financial Overview (cor » Cash store on store growth 11% e Difficult trading environment - Vict e Strong result - Queensland & New South Wales » Trade credit sales decreased by 4% (Australia) « Small account rationalisation « Trade, wholesale and manufacturing closures » Inventory ® Shrinkage, range
Slide 42: Warehouses, Traditional Stores, WA Salvage Stores
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Slide 43: Business Activity Overview
Business Activity Overvi » Store network development e Openings and closures e Former Hardwarehouse refits and departmental upgrades e Bunnings Warehouse upgrades * Traditional store conversions 003 Annual Results 43
Slide 44: Business Activity Overview: Re-brand
Business Activity Overvi Re-brand « Hardwarehouse —- Australia &® New Zealand ® Traditional stores - Australia » Bunnings Point of Sale (November ‘02) » New Store Support Centre - New South Wales 44
Slide 45: Key Issues 2004
Key Issues 2004 » Ongoing development of store ne ® Openings e Departmental and range upgrades e Store upgrades and conversions » Continuous improvement e Consistent offer (price, range, service) « Attracting, developing and retaining the right people e Safety 2003 AnnualResults sss as
Slide 46: Key Issues 2004 (cont)
Key Issues 2004 ( Cost and capital management e Investment in technology e Merchandise / inventory systems and process development 46 2003 Annual Results
Slide 47: Outlook 2004
Outlook 2004 v Continued growth in DIY and renovation market Slower growth in domestic building trade sector Warehouse development 8 -12 per annum Existing store network upgrades and conversions Series 3000 Warehouse 003 Annual Results = 47
Slide 48: Series 3000 Warehouse
Series 3000 Warehouse » Great potential - regional Australia / » Significant upgrade offer to regional centres - price, range, service Vv Competitor stronghold » 29 Australian locations identified — 19 priority » Estimated Australian market $1 billion, capture 25% » Target 4 openings per annum 2003
Slide 49: Warehouse Series
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Slide 50: Industrial and Safety
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Slide 51: Financial Highlights
Financial Highlights » Normalised Operating Revenue (excluding Meta up 2.4% to $1.097b. > Normalised EBITA (excluding Metals) up 29% to $116.3m. » Normalised EBITA/Op. Rev. Margin (excluding Metals) up from 8.4% to 10.6% » EBITA / Capital up from 11.6% to 14.2% 2003 AnnualResults BA
Slide 52: Business Activity Highlights
Business Activity Hig » Blackwoods e Marginal sales increase but solid EBITA growth » Protector Alsafe « Flat sales result but substantial reduction in expenses to yield good EBITA growth » New Zealand e Solid sales increase, combined with margin growth to deliver significant EBITA increase. 2003 An
Slide 53: Highlights for the Year
Highlights for the Yea » Metals disposal » Integration of Protector and Alsafe » Rationalisation of distribution centres » Regionalisation of customer service centres » Blackwoods catalogue published April » Paykels acquisition 003 Annual Results = 53
Slide 54: Outlook for 2004
Outlook for 2004 » Australia ® Generally positive e Easing of drought e Continued spending in mining and transport infrastructure » New Zealand * Steady e MRO growth through acquisition of Paykels 54
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Slide 56: Wesfarmers Landmark
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Slide 57: SETAE
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Slide 58: Highlights - 2003
sini Highlights - 2003 » Sound cost & capital management » Strong finance & insurance growth » Significant improvement in network safety 58 2003 Annual Results
Slide 59: Financial Performance
AT Financial Performance $m EBITA % 70 20 60 50 40 10 30 8 20 6 4 10 2 Oo T T T T 0 ™ T T 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 59 TT Ge
Slide 60: 2003 Performance By Activity
2003 Performance By » Merchandise revenue » Fertiliser revenue » Livestock Agency revenue » Wool Broking revenue » Real Estate revenue » Insurance Premium income » Finance Loan Book 18% 20% 14% 53% t 4 4 Te t t 60
Slide 61: Key Issues - 2003
Key Issues - 2003 » Severe drought » Preserving merchandise margins in highly competitive environment » Implementation of streamlined management structure » Management of costs and capital 003 Annual Results = 61
Slide 62: Outlook - 2004
Outlook - 2004 — > Improving winter crop (except NSW) > Irrigation concerns for summer crops >» Low sheep and cattle numbers >» Strengthening livestock prices » Focus on productivity in merchandise, wool, livestock & real estate » Focus on growth for finance, fertiliser & insurance 2003 AnnualResult
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Slide 64: Insurance highlights
» Steady premium growth despite drought » Lower than expected claims » Claims satisfaction level maintained at 98% » Combined operating ratio of 90.9% Strong compliance program 64
Slide 65: Premium Revenue
i Premium Revenue 200 150 5 100 - 50 + 01/02 @ Non-crop @ Crop My 65 Ty Le ae) Gees 2003 Annual Results —__ TT
Slide 66: Financial Performance
Financial Performance $m 29 24 19 14 EBITA 1999 2000 2001 2002 2003 % 69 59 49 39 29 19 — TE 66
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Slide 68: ARG
ARG 50% Interest » Flat performance, somewhat below e Grain | « Hook and pull « Derailments » 2003 / 04 « Grain season e Safety and operational initiatives « Mineral tonnages 003 Annual Results = 68
Slide 69: Sotico
Sotico » Above plan performance » Timber processing « Wespine » Sale of assets ® Pemberton Sawmill e Forest Harvesting » Remaining » Timber processing e Plantations e Wespine 2003 Annual Results _ 69
Slide 70: Gresham Private Equity
Gresham Private Equity <2 50% Interest = : GRESHAM » $155m invested in Fund 1 « Norcros » Repco ® Cashcard ® Eroc e Riviera « Virgin Active e Raywood 2003 Annu 70 | |
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Slide 72: Projects Announced
Projects Announced 20 Girrah sale Curragh North arrangements » Sale of Metals from WISD Purchase of Paykel Bunnings Warehouses Lumley Insurance 2003 Annual Results 72
Slide 73: Lumley Insurance
Lumley Insurance UK restructuring General / life / financing / technology Signed 30 June 2003 Completion expected end of August Lumley Life sale process underway » Business planning 73
Slide 74: NEUE LEER WwW,
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Slide 75: Capital Expenditure
Capital Expenditure 2004 Forecast Total: $363.6m Hardware Industrial $134.6m Insurance nergy oe $145.4m Landmark A $22.9m Excludes $375m for Lumley 75 2003 Annual Results.
Slide 76: 2004 Outlook
» Hardware - solid retail sales growth, subdued trade sales performance » Positive outlook for Industrial and Safety » Improved outlook for rural business » Improved earnings from CSBP, subject to seasonal conditions in Western Australia 76 2003 Annual Results
Slide 77: 2004 Outlook (cont)
2004 Outlook (cont) | » Positive outlook for Insurance » Subdued outlook for the coal businesses » Australian Railroad Group - improving performance Continued wind down of Sotico operations 77
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