Slide 1: 2010 Half Year Results Supplementary Information
2010 Half Year Results Supplementary Information (To be (T b readd in i conjunction j ti with ith th the Half Year Results Teleconference presentation) 18 February 2010
Slide 2: Table of Contents
Table of Contents 1 C l Coles 3 6 2 Home Improvement & Office Supplies 6 3 T Target t 10 4 Kmart 13 5 R Resources 16 6 Insurance 30 7 Ch i l & Fertilisers Chemicals F tili 37 8 Industrial & Safety 41 9 E Energy 44 10 Other Businesses 47 2
Slide 3: Coles
Coles ST coles °SSs. BLO CHOICE vnc: cous — perstore Liquor Wesfarmers
Slide 4: Our national footprint
Our national footprint… footprint As at 31 December 2009 Selling Area 7 8 11 Supermarkets (sqm) 1,593,007 Liquor (sqm) – ex hotels 182,246 146 230 78 81 94 6 115 67 59 30 6 43 249 253 5 212 163 193 166 749 Supermarkets 781 Liquor stores 14 15 95 Hotels 626 Convenience 4
Slide 5: Store network movements
Store network movements Jun 2009 Opened (1) Closed (1 & 2) Dec 2009 Supermarkets Coles 705 9 18 696 Bi-Lo 58 - 5 53 Total Supermarkets 763 9 23 749 Liquor 1st Choice 64 9 2 71 Vi t Vintage Cellars C ll 80 - - 80 Liquorland 631 9 10 630 Hotels 95 1 1 95 Total Liquor 870 19 13 876 Convenience 625 3 2
Slide 6: Home Improvement & Office Supplies
Home Improvement & Office Supplies
Slide 7: Bunnings Network
Bunnings Network at 31 December 2009 181 Warehouse stores 58 Small format stores 2 25 Trade Centres 29 6 8 23 7 3 9 3 2 55 16 5 13 25 44 6 4 2 1 1 7
Slide 8: Office Supplies Network
Office Supplies Network at 31 December 2009 Retail Stores 127 Officeworks 5 Harris Technology gy Business 25 1 1 11 1 1 4 Fulfilment Centres 8 3 Service Centres 42 2 1 2 39 1 1 1 2 8
Slide 9: Store Network Movements
Store Network Movements Under Jun 2009 Opened Closed Dec 2009 construction Home Improvement Warehouse format 175 8 2 181 10 Smaller format 56 2 - 58 2 Trade Centres 22 4 1 25 5 Office Supplies Officeworks 123 4 - 127 3 Harris Technology 5 - - 5 0 9
Slide 10: Target
Wesfarmers
Slide 11: Target Store Network
Target Store Network at 31 December 2009 2 1 32 25 16 10 19 12 53 45 47 24 173 Target stores 118 Target Country stores 4 1 11
Slide 12: Store Network Movements
Store Network Movements Under Jun 2009 Opened Closed Dec 2009 construction Target 170 3 0 173 Target Country 116 3 1 118 2 • Included in the Target Country numbers is the replacement of our Tenterfield store, i.e. a closure and corresponding re-opening. 12
Slide 13: Kmart
Kmart Cg = Pe 4 a Tyre & Auto Service Wesfarmers
Slide 14: Kmart Store Network
Kmart Store Network at 31 December 2009 186 Kmart stores 252 KTAS centres 2 3 36 52 21 28 13 19 51 71 12 43 73 5 6 3 14
Slide 15: Store Network Movements
Store Network Movements Under Jun 2009 Opened Closed Dec 2009 construction Kmart 184 2 - 186 1 Kmart Tyre & Auto 255 - 3 252 - 15
Slide 16: Resources
Resources Wesfarmers
Slide 17: Coal – production volumes
Coal – production volumes H lf Y Half Year ended d d Mine Beneficial Coal Type ('000 tonnes) Interest Dec-09 Dec-08 Premier, WA 100% Steaming 1,492 1,783 C Curragh, h QLD 100% M ll i l Metallurgical 3,461 3,565 Steaming 1,164 1,511 Bengalla*, NSW 40% Steaming 1,161 1,079 Total 7,278 7,938 * Wesfarme
Slide 18: Business environment
Business environment • Strong signs of emergence from global economic crisis – Customers – significant increase in global steel production – increased metallurgical coal demand and spot prices – traditional Australian export market demand returns – Suppliers – rail and port infrastructure constraint
Slide 19: Seaborne metallurgical coal market
Seaborne metallurgical coal market CONSTRAINED SUPPLY REBOUNDING DEMAND China imports remain high g Australia rail & port 12 months to 31 Dec’09 34mt constraints continue – port coking congestion high Seaborne Metallurgical g Strong steel production Canadian coal production ramp Coal Market Coke ove
Slide 20: Australian coal market prices
Australian coal market prices Hard coking coal g coal Steaming US$/Tonne (Nominal) FOB Australia (annual verse spot) US$/Tonne (Nominal) FOB Australia (annual verse spot) 400 200 350 160 300 250 120 200 150 80 100 40 50 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2003 2004 2005 2006 2007 2008 2009 2
Slide 21: Coal – sales volumes
Coal – sales volumes Beneficial H lf Y Half Year ended d d Mine Coal Type Interest ('000 tonnes) Dec-09 Dec-08 Premier, WA 100% Steaming 1,318 1,802 Curragh, QLD 100% Metallurgical 3,247 3,485 Steaming Stea g 1,267 , 6 1,687 ,68 Bengalla*, NSW 40% Steaming 1,186 1,123 Total 7,018 8,097 * Wesfarmers
Slide 22: Curragh export metallurgical sales
Curragh export metallurgical sales Product mix 2009/10 Semi Hard Hard 23% Semii Hard S H d Hard 43% 22% 47% PCI PCI 34% 31% First half 2009/10 actual 2009/10 estimate 3.25 million tonnes 6.3 - 6.8 million tonnes 22
Slide 23: Recent awards
Recent awards C Curragh h P Premier i Coal C l Queensland Japan Chamber of Commerce & Industry Export Excellence Awards - Winner 23
Slide 24: Curragh focus on cost control
Curragh focus on cost control • Aggressive cost reduction program in place • Mine cash costs ($/t): 8% reduction 1H10 vs. 1H09 • St t i targeted Strategies t t d include i l d – mining and processing practices, equipment utilisation and productivities – procurementt optimisation ti i ti on kkey iinp
Slide 25: Blackwater Creek diversion
Blackwater Creek diversion • Access to additional metallurgical coal • Civil works completed p September p 2009 • Practical completion achieved December 2009 • Capital expenditure $120 million • Ahead of budget and timeline 25
Slide 26: Curragh mine expansion
Curragh mine expansion as announced 10 November 2009 • Expand metallurgical coal exports to 8.0mtpa to 8.5mtpa • Increase of 1.5 – 2.0mtpa metallurgical coal exports from late CY2011 • New Stanwell agreement providing additional coal reserves reserves, with modified export rebate payment above 7mtpa
Slide 27: Hedging profile as at 31 December 2009
Hedging profile as at 31 December 2009 Curragh – Open Contracts Bengalla – Open Contracts Current US$ Average Current US$ Average Year end Year end sold forward A$ / US$ sold forward A$ / US$ 30 Jun 30 Jun (US$m) hedge rate (US$m) hedge rate 2010* 220 0.81 2010* 42 0.80 2011 330 0.79 2011 73 0.80 20
Slide 28: Stanwell agreement - Modified export rebate payment
Stanwell agreement - Modified export rebate payment as announced 10 November 2009 • Existing rebate capped at 7.0mtpa exports – payable when semi hard price >A$62/t FOB approx escalated at 1%pa – rebate 25% of excess over A$62/t multiplied by total export tonnes • New rebate for tonnes in excess of
Slide 29: Stanwell royalty accounting – policy change
Stanwell royalty accounting – policy change • Division has four major royalty obligations - to Qld, NSW, WA and to Stanwell • Effective from 1 July 2009, all royalties are now accounted for in the same way – Policy change for Stanwell to a royalty expense, rather than appearing as amortisation and g
Slide 30: Insurance
Insurance 30
Slide 31: EBITA Comparison
EBITA Comparison $m 2 1 1. Impact of lower interest rates on fixed income investments (excludes hedge on OCR) 2. Impact of weakening GBP/AUD and NZD/AUD exchange rates and other items 31
Slide 32: Geographical Presence
Geographical Presence as at 31 Dec 2009 3 1 1 6 3 13 4 19 1 2 1 1 4 14 8 18 11 6 17 6 1 Lumley Insurance Australia 12 6 Lumley General New Zealand 10 3 4 WFI 84 1 2 OAMPS 33 Crombie Lockwood 17 32
Slide 33: Underwriting Performance Summary
Underwriting Performance Summary Half Year ended 31 December ($m) 2009 2008^ % Gross Written Premium 680 679 0.1 Net Earned Premium 521 513 1.6 Net Claims (334) (353) 5.4 Net Commission and Expenses (171) (153) (11.8) Underwriting Result 16 7 228.6 Insurance Margin 29 35 (17.1) EBITA 38 47 (19 1) (1
Slide 34: Broking Performance Summary
Broking Performance Summary Half Year ended 31 December ($m) 2009 2008^ % Commission and Fee Income 90 92 (2.2) Other Income 10 12 (16.7) Total Income 100 104 (3 8) (3.8) Expenses (75) (76) 1.3 EBITA 25 28 (10.7) Amortisation of Identifiable Intangible Assets (5) (6) 16.7 EBIT 20 22 (9.1) EBITA Marg
Slide 35: Underwriting KPIs
Underwriting KPIs Half Year ended 31 December (%) 2009 2008^ %pt Gross Earned Loss Ratio 66.3 68.0 1.7 Net Earned Loss Ratio 64.2 68.9 4.7 Reinsurance Expenses (% GEP) 23.4 21 9 21.9 (1 5) (1.5) Exchange Commission (% RI excl XOL) 23.3 24.1 (0.8) Commission Expense (% GWP) 13 8 13.8 13 9 13.9 01 0.1
Slide 36: Gross Written Premium (underwriting)
Gross Written Premium (underwriting) (for the six month period to 31 December 2009) Total $680m Personal Liability $125m $139m Marine $31m Commercial Engineering $148m $35m AMO $25m Commercial Crop $22m Motor $155m 36
Slide 37: Chemicals & Fertilisers
Chemicals & Fertiliser Wesfarmers
Slide 38: Fertiliser Sales
Fertiliser Sales kt 1 200 1,200 1,000 800 739 670 589 600 612 513 400 200 381 370 387 289 226 264 0 2005 2006 2007 2008 2009 2010 1st Half 2nd Half 38
Slide 39: Global Fertiliser Pricing
Global Fertiliser Pricing USD/t 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 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 Urea (FOB Middle East) DAP (FOB US Gulf) 39
Slide 40: Global Ammonia & PVC Pricing
Global Ammonia & PVC Pricing USD/t 1400 1300 1200 1100 1000 900 800 700 600 500 400 00 300 200 100 0 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 Am m onia (FOB Middle East) PVC (Harrim an MId-point) 40
Slide 41: Industrial & Safety
Industrial & Safety Wesfarmers
Slide 42: Industrial & Safety Business Portfolio
Industrial & Safety Business Portfolio Australia New Zealand “All your Safety Industrial workplace needs” Specialist Specialists (1) (1) Manufacturing and services 42
Slide 43: Industrial & Safety - Distribution Network
Industrial & Safety - Distribution Network 241 locations (164 Australia, 77 New Zealand) Australia No No. 2 69 MRO, “All your workplace needs” 4 1 16 5 Electrical 14 5 12 7 9 5 9 3 Safety 45 2 1 54 22 Materials handling, lifting, rigging 4 2 17 1 6 4 Fasteners 16 4 1 7 Engineering 11 5 New Zealand N
Slide 44: Energy
Energy Wesfarmers
Slide 45: World LPG prices – Saudi CP
World LPG prices – Saudi CP Average CP USD/tonne Jul 09 - Dec 09 Propane USD $585 1,000 900 800 700 600 500 400 300 Average CP 200 Jul 08 - Dec 08 100 USD $698 0 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 R Recovery ffrom llast year’s ’ sharp h price i drop d 45
Slide 46: WLPG Production
WLPG Production kt Ave t/TJ 200 1.2 1.1 150 10 1.0 0.9 100 0.8 0.7 50 0.6 0 0.5 2008 2009 2010 H1 WLPG production (kt) H2 WLPG production (kt) H1 average LPG content (t/TJ) FY average LPG content (t/TJ) Production increased in H1 due to higher LPG content 46
Slide 47: Other Businesses
Other Businesses 47
Slide 48: Breakdown of reported result
Breakdown of reported result Half Year ended 31 December ($m) 2009 2008^ Divisional EBIT (excl Other) 1,562 1,949 Other Businesses 31 (138) Corporate overheads (46) (74) Group EBIT 1,547 1,737 Finance costs - expense net of capitalisation (284) (434) - discounts* (31) (31) - other borrowing costs (4
Slide 49: Gresham Private Equity
Gresham Private Equity • Carrying value of investment in Gresham Private Equity Funds $166m • Investments include: – Barminco, Witchery, Noel Leeming, Silk Logistics Group, GEON and Anthology • Revaluations of remaining investments are to Wesfarmers’ earnings 49
Slide 50: For all the latest news visit www.wesfarmers.com.au
For all the latest news visit www.wesfarmers.com.au 50