Slide 1: 2011 Half-Year Results Supplementary Information
2011 Half-Year Results Supplementary Information (To be read in conjunction with the Half-Year Results Teleconference presentation) 17 February 2011
Slide 2: Coles
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Slide 3: Coles network
Coles network Coles 3 As at 31 December 2010 Selling Area 6 7 11 Supermarkets (sqm) 1,599,157 Liquor (sqm) – ex hotels 185,236 148 221 78 81 96 6 112 67 52 30 6 43 247 259 5 210 166 193 174 742 Supermarkets 15 15 787 Liquor stores 95 Hotels 624 Convenience
Slide 4: Store network movements
Coles 4 Store network movements Open at Open at 1 July 2010 Opened Closed Re-brand 31 Dec 2010 Supermarkets Coles 691 8 5 - 694 Bi-Lo 51 - 3 - 48 Total Supermarkets 742 8 8 - 742 Liquor 1st Choice 73 3 - - 76 Vintage Cellars 78 6 - (2) 82 Liquorland 615 15 4 3 629 Hotels 96 1 1 (1) 95 Total Liquor 8
Slide 5: Revenue reconciliation
Coles 5 Revenue reconciliation Half-Year ended 2010 2009 31 December Food & Convenience Total Food & Convenience Total Liquor Liquor ($m) Segment revenue1 (Gregorian) 12,804 3,244 16,048 12,028 3,121 15,149 Less: Other revenue 68 9 77 66 9 75 Headline sales (Gregorian) 12,736 3,235 15,971 11,962 3,1
Slide 6: Home Improvement & Office Supplies
Home Improvement & Office Supplies
Slide 7: Bunnings network
Bunnings network Home Improvement & Office Supplies 7 As at 31 December 2010 191 Warehouse stores 57 Smaller format stores 2 32 Trade Centres 31 5 9 24 6 3 9 3 2 57 17 6 14 24 1 47 1 9 5 2 1 2
Slide 8: Officeworks & Harris Tech. network
Officeworks & Harris Tech. network Home Improvement & Office Supplies 8 As at 31 December 2010 Retail Stores 133 Officeworks 5 Harris Technology 26 1 1 Business 11 1 1 4 Fulfilment Centres 8 3 Service Centres 45 2 1 1 Print Hub 2 1 41 1 1 1 2
Slide 9: Store network movements
Store network movements Home Improvement & Office Supplies 9 As at 31 December 2010 Under Open at Open at construction at 1 July 2010 Opened Closed 31 Dec 2010 31 Dec 2010 Home Improvement Bunnings Warehouse 184 8 1 191 8 Bunnings smaller formats 58 5 6 57 1 Bunnings Trade Centres 29 3 - 32 3 Office
Slide 10: Target
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Slide 11: Target network
Target network Target 11 As at 31 December 2010 3 59 31 26 97 69 290 Target stores (incl 119 Target Country) 5
Slide 12: Store network movements
Target 12 Store network movements Under Open at Open at construction at 1 July 2010 Opened Closed 31 Dec 2010 31 Dec 2010 Target 171 - - 171 1 Target Country 119 2 2 119 -
Slide 13: Revenue reconciliation
Target 13 Revenue reconciliation Half-Year ended 31 December ($m) 2010 2009 Segment revenue (Gregorian) 2,120 2,182 Less: Non sales revenue - - Headline sales (Gregorian) 2,120 2,182 Plus: Gregorian adjustment 30 37 Headline sales (Retail1) 2,150 2,219 1. Retail period relates to the 27 week period
Slide 14: Kmart
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Slide 15: Kmart network
Kmart network Kmart 15 As at 31 December 2010 186 Kmart stores 250 KTAS centres 2 3 36 52 21 28 13 19 51 70 12 43 73 5 5 3
Slide 16: Store network movements
Kmart 16 Store network movements Under Open at Open at construction at 1 Jul 2010 Opened Closed 31 Dec 2010 31 Dec 2010 Kmart 186 - - 186 1 Kmart Tyre & Auto 251 - 1 250 4
Slide 17: Revenue reconciliation
Kmart 17 Revenue reconciliation Half-Year ended 31 December ($m) 2010 2009 Segment revenue (Gregorian) 2,271 2,226 Less: Non sales revenue 1 1 Headline sales (Gregorian) 2,270 2,225 Plus: Gregorian adjustment 40 41 Headline sales (Retail1) 2,310 2,266 1. Retail period relates to the 27 week period 2
Slide 18: Insurance
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Slide 19: Insurance business overview
Insurance 19 Insurance business overview Australia New Zealand United Kingdom Broking Underwriting Group Services
Slide 20: Geographical presence
Geographical presence Insurance 20 As at 31 December 2010 3 1 UK 4 3 14 4 19 1 2 1 1 5 13 6 22 11 7 19 1 6 Lumley Insurance (Australia) 13 Lumley General New Zealand 11 6 WFI 90 3 4 1 OAMPS 1 29 2 Crombie Lockwood 17 1 OAMPS New Caledonia location not shown
Slide 21: Underwriting performance summary
Insurance 21 Underwriting performance summary Half-Year ended 31 December ($m) 2010 2009 % Gross Written Premium 659 680 (3.1) Net Earned Premium 549 521 5.4 Net Claims (358) (334) 7.2 Net Commission & Expenses (184) (171) 7.6 Underwriting Result 7 16 (56.3) Insurance Margin 29 29 - EBITA 42 38 10.5
Slide 22: Broking performance summary
Insurance 22 Broking performance summary Half-Year ended 31 December ($m) 2010 2009 % Commission & Fee Income 92 90 2.2 Other Income 12 10 20.0 Total Income 104 100 4.0 Expenses (76) (75) 1.3 EBITA 28 25 12.0 EBIT 23 20 15.0 EBITA Margin (%) 27.3 25.2
Slide 23: Underwriting KPIs
Insurance 23 Underwriting KPIs Half-Year ended 31 December (%) 2010 2009 % pt Gross Earned Loss Ratio 74.3 66.3 8.0 Net Earned Loss Ratio 65.2 64.2 1.0 Reinsurance Expenses (% GEP) 19.3 23.4 (4.1) Exchange Commission (% RI excl XOL) 24.8 23.3 1.5 Commission Expense (% GWP) 13.1 13.8 (0.7) Total Earn
Slide 24: Gross written premium (Underwriting)
Gross written premium (Underwriting) Insurance 24 (for the six month period to 31 December 2010) Total $659m Liability 16% Marine 5% Engineering 6% Personal 22% Crop 4% Commercial Motor 23% Commercial 24%
Slide 25: Resources
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Slide 26: Resources environment
Resources 26 Resources environment • Global demand for coal – Stable environment for most world major economies – Global steel production has recovered to pre-GFC levels • Supply issues – Queensland metallurgical coal production severely affected by floods – Associated rail infrastructure constraint
Slide 27: Australian coal market prices
Resources 27 Australian coal market prices Australian steaming coal prices Australian hard coking coal prices US$/Tonne (Nominal) FOB Australia ( Quaterly price to March 2011 verse spot) US$/Tonne (Nominal) FOB Australia (annual verse spot) 400 200 150 300 100 200 50 100 0 0 2004 2005 2006 2007 2008
Slide 28: Curragh export metallurgical sales
Resources 28 Curragh export metallurgical sales Semi Hard Semi Hard 21% 21% Hard 42% PCI 37% 1H FY11 Actual FY11 Forecast 3.2 million tonnes 5.8 – 6.2 million tonnes
Slide 29: Coal – production volumes
Resources 29 Coal – production volumes Half Year Ended Beneficial ('000 tonnes) Mine Coal Type Interest Dec 2010 Dec 2009 Curragh, QLD 100% Metallurgical 3,120 3,461 Steaming 1,342 1,164 Premier, WA 100% Steaming 1,510 1,492 Bengalla, NSW1 40% Steaming 1,108 1,161 Total1 7,080 7,278 1. Wesfarmers at
Slide 30: Coal – sales volumes
Resources 30 Coal – sales volumes Half Year Ended Beneficial ('000 tonnes) Mine Coal Type Interest Dec 2010 Dec 2009 Curragh, QLD1 100% Metallurgical 3,151 3,247 Steaming 1,391 1,267 Premier, WA 100% Steaming 1,513 1,318 Bengalla, NSW2 40% Steaming 1,259 1,186 Total2 7,314 7,018 1. Curragh metallurg
Slide 31: Curragh focus on cost control
Resources 31 Curragh focus on cost control • Mine cash costs ($/t) increased 19.9% 1H FY11 vs. 1H FY10 – Mine cash costs ($/t) reduced 9.2% in FY10 vs. FY09 • Adverse cost impacts from wet weather & lower volume – Limited ability to catch up lost production during FY11 due to CHPP capacity constrain
Slide 32: Current hedging profile as at 31 Dec 10
Resources 32 Current hedging profile as at 31 Dec 10 Curragh Bengalla Full Year Current US$ Average Full Year Current US$ Average end sold forward A$ / US$ end sold forward A$ / US$ 30 June (US$m) hedge rate 30 June (US$m) hedge rate 20111 380 0.86 20111 59 0.83 2012 630 0.84 2012 85 0.81 2013 431 0
Slide 33: Curragh mine expansion
Resources 33 Curragh mine expansion • Wesfarmers approved in November 2009 the investment of $286 million to expand Curragh metallurgical coal exports to 8.0 – 8.5mtpa • Curragh has rail & export capacity contracted at 8.5mtpa • Curragh has forward-sold the additional production to existing & new lo
Slide 34: Bengalla expansion study
Resources 34 Bengalla expansion study • Expansion to 10.7mtpa ROM tonnes through two stages – Stage One 9.3mtpa ROM – Stage Two 10.7mtpa ROM • Stage One approved – November 2010 ($56m)1 • Stage Two feasibility study nearing completion • Additional port capacity secured • Phase one completion targete
Slide 35: Curragh expansion study to 10mtpa
Resources 35 Curragh expansion study to 10mtpa • Feasibility study (FS) commenced – Mining & Coal Handling Preparation Plant studies • Potential to expand Curragh to 10mtpa metallurgical exports from FY14 – Wiggins Island commissioning – Additional rail capacity required – Potential for additional d
Slide 36: Wiggins Island coal export terminal
Resources 36 Wiggins Island coal export terminal • Stage One development of 27mtpa port capacity (Curragh share 1.5mtpa) • Decision on investment & take-or-pay commitment in 1H CY11 • First shipment 2014 • Potential cumulative capacity from subsequent stages – up to 80mtpa
Slide 37: Chemicals, Energy & Fertilisers
Chemicals, Energy & Fertilisers
Slide 38: Fertiliser sales
Chemicals, Energy 38 & Fertilisers Fertiliser sales kt 1,200 1,000 800 739 670 813 589 600 612 649 513 400 200 381 370 387 249 289 264 244 226 0 2004 2005 2006 2007 2008 2009 2010 2011 1st Half 2nd Half Volumes dependent on seasonal break in second half
Slide 39: Global fertiliser pricing
Chemicals, Energy 39 & Fertilisers Global fertiliser pricing USD/t 1,400 1,200 1,000 800 600 400 200 0 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Urea (FOB Middle East) DAP (FOB US Gulf) Ammonia (FOB Middle East) Prices steadily in
Slide 40: PVC-VCM Spread
Chemicals, Energy 40 & Fertilisers PVC-VCM Spread The „PVC – VCM Spread‟ refers to the difference between the Asian PVC selling price & VCM input cost $/t 300 250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 FY Average $US/t FY Average $A/t Source: Harriman Front Page
Slide 41: World LPG prices – Saudi CP
Chemicals, Energy 41 World LPG prices – Saudi CP & Fertilisers USD/tonne Propane 1,000 800 600 400 200 0 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 US$ LPG prices increase over 2Q11, partially offset by strong A$
Slide 42: WLPG production
Chemicals, Energy 42 & Fertilisers WLPG production Production lower than 1H10 due to reduced content
Slide 43: Industrial & Safety
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Slide 44: Business portfolio
Industrial & Safety 44 Business portfolio Australia New Zealand Distribution & “All your Safety Industrial Industrial, Sourcing workplace Specialist Specialists Medical & Specialists needs” Specialty gases Note: Motion Industries divested in September 2010
Slide 45: Distribution network
Distribution network Industrial & Safety 45 As at 31 December 2010 236 industrial & safety locations & 129 gas distribution points Australia(1) No. 2 3 16 12 72 “All your workplace needs” industrial (2) 1 8 9 18 9 1 44 Safety 1 6 4 44 24 Materials handling, lifting & rigging 5 4 3 18 Fasteners 2 17
Slide 46: Other Business & Capital Management
Other Business & Capital Management
Slide 47: Overview of the Group balance sheet
47 Overview of the Group balance sheet ($m)1 1H10 FY10 1H11 Commentary Inventories 5,054 4,658 5,296 Receivables & prepayments 2,293 2,346 2,577 Trade & other payables (5,139) (4,621) (5,492) Detailed working capital discussion provided on slide 48 Other 285 237 276 Net working capital 2,493 2,620 2
Slide 48: Balance sheet - working capital
48 Balance sheet - working capital ($m) 1H10 FY10 1H11 Commentary Inventories 5,054 4,658 5,296 • Inventory increased by $242 million (1H FY11 v 1H FY10) • Retail divisions seasonally higher against June Home Improvement: network growth Kmart: increase in direct sourcing from off-shore Target: seaso
Slide 49: IASB Exposure Draft 2010/9 Leases
49 IASB Exposure Draft 2010/9 Leases • Wesfarmers has approximately 6,500 leases across the Group of which some 3,500 are property leases • Wesfarmers primary concern is that the Exposure Draft (ED) is particularly onerous for Australian retail companies with extensive property lease portfolios • We
Slide 50: For all the latest news visit www.wesfarmers.com.au
For all the latest news visit www.wesfarmers.com.au