Slide 1: 2014 Full-Year Results Supplementary Information
2014 Full-Year Results Supplementary Information 20 August 2014 (To be read in conjunction with the 2014 Full-Year Results Briefing presentation) 2014 Full-Year Results | 1
Slide 2: Presentation outline
Presentation outline Item Page Coles 3 Home Improvement & Office Supplies 7 Kmart 13 Target 17 Chemicals, Energy & Fertilisers 22 Resources 28 Industrial & Safety 39 Insurance 42 Balance Sheet & Cash Flow 47 2014 Full-Year Results | 2
Slide 3: Coles
Coles 2014 Full-Year Results | 3
Slide 4: Coles network
Coles network As at 30 June 2014 Selling Area Supermarkets (sqm) 1,692,642 6 7 11 Liquor (sqm) – ex hotels 205,179 157 220 76 762 Supermarkets 85 106 5 120 831 Liquor stores 68 56 34 7 90 Hotels 44 241 270 2 210 642 Convenience 201 194 174 16 15 2014 Full-Year Results | 4
Slide 5: Store network movements
Store network movements Open at Open at 30 June Re- 30 June 2013 Opened Closed branded 2014 Supermarkets Coles 722 19 (9) 13 745 Bi-Lo 34 - (4) (13) 17 Total Supermarkets 756 19 (13) - 762 Liquor 1st Choice 92 8 (2) - 98 Vintage Cellars 79 - (2) - 77 Liquorland 639 33 (16) - 656 Hotels 92 - (2) - 90
Slide 6: Revenue reconciliation
Revenue reconciliation 2014 2013 Food & Food & Year ended 30 June ($m) Liquor1 Convenience Total Liquor1 Convenience Total Segment revenue (Gregorian)1 29,220 8,171 37,391 27,933 7,847 35,780 Less: Other revenue (252) (12) (264) (236) (13) (249) Headline sales (Gregorian) 28,968 8,159 37,127 27,697
Slide 7: Home Improvement & Office Supplies
Home Improvement & Office Supplies 2014 Half-Year Results | 7
Slide 8: Bunnings network
Bunnings network As at 30 June 2014 3 223 Warehouse stores 64 Smaller format stores 36 6 9 33 Trade Centres 27 9 4 11 3 2 67 16 7 18 22 3 51 7 6 4 1 1 6 1 2014 Full-Year Results | 8
Slide 9: Officeworks network
Officeworks network As at 30 June 2014 Retail Stores 151 Officeworks 1 1 Harris Technology Business 27 1 4 Fulfilment Centres 15 1 1 Service Centre 8 1 Print Hub 50 1 1 1 1 48 1 2 2014 Full-Year Results | 9
Slide 10: Store network movements
Store network movements Open at Open at Under 30 June 30 June construction 2013 Opened Closed 2014 30 June 2014 Home Improvement Bunnings Warehouse 210 20 (7) 223 16 Bunnings smaller formats 67 4 (7) 64 2 Bunnings Trade Centres 36 1 (4) 33 1 Office Supplies Officeworks 149 61 (4)1 151 3 Harris Techn
Slide 11: Home Improvement performance summary
Home Improvement performance summary Year ended 30 June ($m) 2014 2013 % Revenue 8,546 7,661 11.6 EBITDA 1,106 1,028 7.6 Depreciation & amortisation (127) (124) (2.4) EBIT 979 904 8.3 EBIT margin (%) 11.5 11.8 Less: Net property contribution1 13 8 62.5 Trading EBIT 966 896 7.8 Trading EBIT margin (%
Slide 12: 20 years of Bunnings Warehouse growth
20 years of Bunnings Warehouse growth • August 1994: first Bunnings Warehouse commences trading – 4th Australian business to invest in large-scale hardware format – Competing against significantly larger BBC & Mitre10 businesses – Leveraged hardware sector know-how – By June 1995, 3 Bunnings Warehou
Slide 13: Kmart
Kmart 2014 Full-Year Results | 13
Slide 14: Kmart network
Kmart network As at 30 June 2014 192 Kmart stores 2 3 243 KTAS centres 38 51 21 26 15 17 51 74 12 44 68 4 5 4 2014 Full-Year Results | 14
Slide 15: Store network movements
Store network movements Open at Open at 30 June 2013 Opened Closed 30 June 2014 Kmart 190 5 (3) 192 Kmart Tyre & Auto 263 3 (23) 243 2014 Full-Year Results | 15
Slide 16: Revenue reconciliation
Revenue reconciliation Year ended 30 June ($m) 2014 2013 Segment revenue (Gregorian) 4,209 4,167 Less: Non sales revenue (5) (3) Headline sales (Gregorian) 4,204 4,164 Add: Gregorian adjustment1 (10) 73 Less: Additional retail week - (81) Headline sales revenue (Retail2) 4,194 4,156 1 Adjustment to
Slide 17: Target
Target 2014 Half-Year Results | 17
Slide 18: Target network
Target network As at 30 June 2014 180 Large 2 1 128 Small 32 32 19 12 17 12 57 45 48 25 5 1 2014 Full-Year Results | 18
Slide 19: Store network movements
Store network movements Open at Open at Under 30 June 30 June construction at 2013 Opened Closed 2014 30 June 2014 Large1 178 6 (4) 180 3 Small2 130 5 (7) 128 - Total 308 11 (11) 308 3 1 30 June 2014 includes one outlet store. Large store numbers include two replacement stores. 2 30 June 2014 includ
Slide 20: Revenue reconciliation
Revenue reconciliation Year ended 30 June ($m) 2014 2013 Segment revenue (Gregorian) 3,501 3,658 Less: Non sales revenue - - Headline sales (Gregorian) 3,501 3,658 Add: Gregorian adjustment1 (5) 61 Less: Additional retail week - (71) Headline sales revenue (Retail2) 3,496 3,648 1 Adjustment to headl
Slide 21: Target transformation plan
Target transformation plan Fixing the basics (FY14-15) Growth & efficiency (FY16-17) The Target difference (FY18) • Improve availability • Integrated ‘bricks & clicks’ • Maximise SKUs on replenishment • Enhance online functionality • Differentiated store format • Roll-out renewal program • Improve s
Slide 22: Chemicals, Energy & Fertilisers
Chemicals, Energy & Fertilisers 2014 Half-Year Results | 22
Slide 23: Fertiliser sales
Fertiliser sales kt Increased 2H volumes, resulting in steady full-year sales 1,000 900 800 700 600 649 714 713 610 779 500 400 300 200 264 244 227 100 220 160 0 FY10 FY11 FY12 FY13 FY14 First half Second half 2014 Full-Year Results | 23
Slide 24: Global fertiliser & ammonia pricing
Global fertiliser & ammonia pricing US$/t Rebound in phosphate prices in second half of FY14, 800 albeit below FY13 700 600 500 400 300 200 100 0 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Urea (FOB Middle East) DAP (FOB US Gulf) Ammonia (FOB Middle East) 2014 Full-
Slide 25: PVC-VCM spread
PVC-VCM spread • The ‘PVC – VCM Spread’ refers to the difference between the Asian PVC selling price & VCM input cost $/t Some improvement in A$ spread in FY14 300 250 200 150 100 50 0 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 FY average US$/t FY average A$/t Sourc
Slide 26: World LPG prices – Saudi CP
World LPG prices – Saudi CP $/t LPG prices declined in 2H14 following growth in 1H14 1,400 1,200 1,000 800 600 400 200 0 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Saudi CP US$/t (propane) Saudi CP A$/t (propane) 2014 Full-Year Results | 26
Slide 27: LPG production
LPG production Continued long-term trend of content decline kt Avg. t/TJ 200 1.2 160 1.0 120 0.8 80 0.6 40 0.4 0 0.2 FY10 FY11 FY12 FY13 FY14 H1 WLPG production (kt) H2 WLPG production (kt) H1 average LPG content (t/TJ) FY average LPG content (t/TJ) 2014 Full-Year Results | 27
Slide 28: Resources
Resources 2014 Full-Year Results | 28
Slide 29: Business environment
Business environment • Continued challenging global trading conditions for export markets • Metallurgical coal supplies continue to exceed steel production demand – Supply-side responses have commenced in both Australia & globally – Demand-side variability (Japan strong, Eurozone weaker, China & Ind
Slide 30: Australian coal market prices
Australian coal market prices Australian steaming coal prices Australian hard coking coal prices US$/tonne (nominal) FOB Australia (annual verse spot) US$/tonne (nominal) FOB Australia (annual verse spot) 250 400 350 200 300 250 150 200 100 150 100 50 50 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2
Slide 31: Curragh export metallurgical sales product mix
Curragh export metallurgical sales product mix 2014 Actual 2015 Forecast 8.8 million tonnes 7.5 – 8.5 million tonnes Semi Hard 31% Hard Semi 38% 44% 26% PCI PCI 2012/2013 Actual 31% 2012/2013 Actual 30% 2014 Full-Year Results | 31
Slide 32: Coal – production volumes
Coal – production volumes Year Ended Mine Ownership Coal Type ('000 tonnes) Jun 2014 Jun 2013 Curragh, QLD 100% Metallurgical 8,810 7,380 Steaming 3,498 3,254 Bengalla, NSW1 40% Steaming 3,451 3,096 Total1 15,759 13,730 1 Wesfarmers attributable production. 2014 Full-Year Results | 32
Slide 33: Coal – sales volume
Coal – sales volume Year Ended Mine Ownership Coal Type ('000 tonnes) Jun 2014 Jun 2013 Curragh, QLD1 100% Metallurgical 8,779 7,212 Steaming 3,570 3,166 Bengalla, NSW2 40% Steaming 3,446 3,028 Total2 15,795 13,406 1 Curragh metallurgical coal sales excludes traded coal. 2 Wesfarmers attributable sa
Slide 34: Curragh ongoing cost control focus
Curragh ongoing cost control focus • Continued focus on cost control & productivity improvements Mine cash costs per tonne 100.00 (excl. carbon tax) • Unit cash costs in 2H FY2014 ~37% below 1H FY2012 peak 90.00 – Favourable geological conditions 80.00 supported cost performance in 2H FY14 • Cost pe
Slide 35: Acquisition – MDL 162
Acquisition – MDL 162 • Acquisition of MDL 162 adjacent to Curragh mine Curragh North from Peabody Energy Australia for $70 million Coal Mine • Opportunity to utilise existing Curragh infrastructure including CHPP, rail loop & mining equipment • Expected to extend Curragh mine life & provide Jellinb
Slide 36: Mine expansion Bengalla 'capital light' expansion – Stage 2
Mine expansion Bengalla ‘capital light’ expansion – Stage 2 • Stage One: 9.3mtpa ROM completed in Q2 CY12 • Stage Two expansion to 10.7mtpa ROM tonnes approved in July 2014 – Low capital cost expansion to 10.7mtpa ROM tonnes – Additional rail & port capacity secured – Feasibility study completed – L
Slide 37: FX hedging profile: 30 June 2014
FX hedging profile: 30 June 2014 Curragh Bengalla Current US$ Average Current US$ Average Year end sold forward A$ / US$ Year end sold forward A$ / US$ 30 Jun (US$m) hedge rate 30 Jun (US$m) hedge rate 2015 592 0.87 2015 161 0.88 2016 430 0.88 2016 154 0.89 2017 258 0.86 2017 81 0.86 2018 108 0.81 2
Slide 38: Resources financial summary
Resources financial summary Year ended 30 June 2014 2013 Commentary Production tonnes – (‘000 tonnes) Curragh & Bengalla1 15,759 13,730 Record production achieved at both mines - productivity focus Revenue ($m) Produced 1,526 1,518 Traded 18 21 Total 1,544 1,539 Lower export prices, offset by higher
Slide 39: Industrial & Safety
Industrial & Safety 2014 Full-Year Results | 39
Slide 40: Our business portfolio
Our business portfolio Generalists Safety Specialists Industrial Specialists Your trusted supplier for all Ensuring every person is Depth of expertise your workplace needs & safe, every day, by using our in technical fields critical to service solutions. innovative services, products customer operat
Slide 41: Distribution network
Distribution network As at 30 June 2014 210 owned branches & 158 additional gas distribution points Generalists 97 1 1 Indonesia 75 Blackwoods 22 Blackwoods Protector 2 2 1 Safety Specialists 72 19 7 2 4 1 37 Protector Alsafe 53 1 8 18 8 1 23 NZ Safety 7 6 4 4 1 10 Greencap 34 1 2 16 7 2 2 Safety So
Slide 42: Insurance
Insurance 2014 Full-Year Results | 42
Slide 43: Underwriting performance summary
Underwriting performance summary Year ended 30 June ($m) 2014 2013 % Gross Written Premium 1,758 1,644 6.9 Net earned premium 1,545 1,391 11.1 Net claims (976) (922) (5.9) Net commission & expenses (466) (404) (15.3) Underwriting result 103 65 58.5 Insurance margin 147 109 34.9 EBITA 168 136 23.5 EB
Slide 44: Underwriting KPIs
Underwriting KPIs Year ended 30 June 2014 2013 % pt Gross earned loss ratio (%) 64.8 67.3 (2.5) Gross earned loss ratio (%) (excluding EQ2)1 62.2 67.3 (5.1) Net earned loss ratio (%) 63.2 66.3 (3.1) Net earned loss ratio (%) (excluding EQ2)1 60.3 66.3 (6.0) Reinsurance expenses (% GEP) 10.8 12.5 (1.
Slide 45: Broking performance summary
Broking performance summary Year ended 30 June ($m) 20141 2013 % Commission & fee income 245 258 (5.0) Other income 33 35 (5.7) Total income 278 293 (5.1) Expenses (213) (207) (2.9) EBITA 65 86 (24.4) EBIT 52 73 (28.8) EBITA Margin (%) 23.3 29.3 1 Reflects results for the 11 months ending 31 May 201
Slide 46: Gross written premium (underwriting)
Gross written premium (underwriting) Engineering Marine 4% 3% Commercial motor Liability 23% 13% Total: $1,758m Personal 31% Commercial 24% Crop 2% 2014 Full-Year Results | 46
Slide 47: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow 2014 Full-Year Results | 47
Slide 48: Overview of the Group balance sheet
Overview of the Group balance sheet 2013 Year ended 30 June ($m)1 2014 Commentary Restated2 Inventories 5,336 5,047 Receivables & prepayments 1,805 1,505 Detailed working capital discussion provided on slide Trade & other payables (5,424) (5,369) 49 Other 403 614 Net working capital 2,120 1,797 Lowe
Slide 49: Balance sheet – working capital
Balance sheet – working capital 2013 Year ended 30 June ($m)1 2014 Commentary Restated2 • Coles & HIOS: Higher inventory following store network Inventories 5,336 5,047 growth • Target: Higher inventory driven by Toy Sale event timing • HIOS: Higher receivables due to increased commercial Receivable
Slide 50: History of disciplined portfolio management
History of disciplined portfolio management Major acquisitions & divestments1 Coles Group Acquisitions Howard Smith IAMA Bengalla Aust Coregas deposit2 Bunnings Railroad Lumley Group Finance OAMPS Western Aust & NZ Australian MDL CSBP Collieries Dalgety Curragh Vinyls 162 1984 1988 1992 1996 2000 20
Slide 51: 2014 Full-Year Results
years 1G Thousands es so of stories Wesfarmers For all the latest news visit www.wesfarmers.com.au