Wesfarmers Limited · ASX:WES
Wesfarmers — Investment Conferences New York and London, March 2005
47 slides from Wesfarmers's conference presentation, Mar 8, 2005
Slide 1: Wesfarmers Limited ASX cover letter
0s Wesfarmers Limited ABN 26 O06 984 049 LIK/hew 8 March 2005 The Manager Company Announcements Office Australian Stock Exchange Limited Level 4 20 Bridge Street SYDNEY NSW 2000 Dear Sir PRESENTATION TO BE GIVEN AT INVESTMENT CONFERENCES — NEW YORK AND LONDON Following is a presentation that is to b
Slide 2: Investment Conference
Slide 3: To provide a satisfactory return to shareholders
To provide a satisfactory return to shareholders
Slide 4: Financial results
ee iy a 7 wy 7 Vy aay i Ly 7 Lo) Vi 7 a _ yy) — _ GL Y L ay operating Revenue* Net Profit (before goodwill)* Goodwill Amortisation Net Profit* Earnings Per Share.(before g/will)* (cents) 567.6 (85.7) 481.9 150.7 * Excludes the sale of Girrah (2003) and Landmark (2004) ‘March 2005 yo / 7 7672.9 7,706
Slide 5: Capital Employed
Capital Employed . December 2004 Hardware AS1,790m Chemicals & Fertilisers AS546m Other AS647m Insurance Industrial & AS$429m Safety Products AS$787m ‘March 2005
Slide 6: EPS and share price
9861 L861 886l ‘March 2005: 6861 0661 L661 T66L £66) = =. 2 = = = o Oo Oo Oo 0 0 oOo Oo Oo ODO OO SO hu nD SN cw O EPS ---—- Share Price 0002 L002 t00z £002 ¥00Z
Slide 7: All Ordinaries vs Wesfarmers Limited
160,000 140,000 -~ 120,000 - 100,000 - f 80,000 - Wf 60,000 - 40,000 - prdee 20,000 - ied tats oT con QO 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 ~~~ All Ordinaries <-- Wesfarmers Limited ‘March 2005 _ . > ~=~SEDrt—“‘“—OSs—<Ss—CsCsSéSsS<‘“—FPF
Slide 8: Logical Incrementalism
Logical Incrementalism
Slide 9: Improve performance of existing businesses
Improve performance of existing businesses Expand existing businesses Portfolio management
Slide 10: Corporate Strategies: Improve performance of existing businesses
Corporate Strategie Improve performance of existing businesses
Slide 11: LD y
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Slide 12: spun nimumeaneY yyy ey,
spun nimumeaneY yyy ey, Ee: Lo, di ae Mis ey 7 ye yy SG 7; ‘March 2005:
Slide 13: 10-20
10-20
Slide 14: Earnings and return on capital by division
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Slide 15: Return on Shareholders' Funds
Ret ur non Shareholders’ : Fu nds before goodwill amortisation ee ee” 7 Ve a ye Vy | yi : : 7 yy, : oo _ ye ; e ye : ‘ Ae es AA 2000 2001 2002 2003* 2004** Dec 04% == Target * Excluding Girrah ** Excluding Landmark * Rolling 12 Month basis | March 2005
Slide 16: Expand existing businesses
improve performance of é Expand existing businesses | ‘March 2005: y | | _ . > ~»~»SEOErt—“i—esSsSs—s—s—seSSFSsSé<—
Slide 17: Hardware
1)
Slide 18: Hardware quick facts
QUICK FACTS 127 warehouse stores 84 traditional stores 45,000 product lines 21,500 employees CONTRIBUTION TO GROUP EBITA WAREHOUSES AND STORES No. Bi Warehouses 127 IW Traditional stores 84 @ WA Salvage stores 18 March 2005. _ . ~=——r—“—C—.
Slide 19: Hardware EBITA and EBITA/Capital
EBITA EBITA/ Capital $m % 30 25 20 an 15 10 2000 2001 2002 2003 2004 2005 ui First HY EBITA Em Full Year EBITA ~@~ EBITA/ Capital (R12)
Slide 20: Hardware priorities
® Continued expansion of store network ® Refurbishment program # £3000’ Series rollout * Trade strategy * Development of new store concepts
Slide 21: Wesfarmers Energy
Slide 22: Energy businesses and contribution
CONTRIBUTION TO GROUP EBITA BUSINESSES Coal @ Premier Coal @ Curragh @ bengalla Gas and power @ Kleenheat Gas im Wesfarmers LPG BB Air Liquide @ StateWest Power March 2005. _ . ~=——r—“—C—.
Slide 23: Energy EBITA and EBITA/Capital
EBITA EBITA/ Capital $m % 300 35 7 30 + 25 7 20 150 + + 15 00 a oo = 0 0 2000 2001 2002 2003* 2004 2005 Gi First HY EBITA Full Year EBITA ~@~ EBITA/ Capital (R12) * Excludes Girrah A$80.5m in 2003
Slide 24: Energy priorities
® Coal expansion - Curragh North # 300MW Base Load Power Procurement Tender (BOO) #® Extension of coal contracts at Premier beyond 2010 * New contracts securing gas supply to LPG plant post July 2005 ® Kleenheat - Development of new markets for LNG
Slide 25: Insurance
‘March 2005: AMM a i) I) i iii
Slide 26: Insurance quick facts
OUICK FACTS 1 A400 employers 105 branches CONTRIBUTION TO GROUP EBITA BUSINESSES No. @ Wesfarmers Federation Instance 84 @ Lumley 2! ‘March 2005:
Slide 27: Insurance EBITA/Capital
EBITA/ Capital % 2000 2001 ll First HY EBITA March 2005 2002 2003 Full Year EBITA ‘it cnn nn Sani 2004 2005 ~®~ EBITA/Capital (R12) 70 60 50 40 30 20 10
Slide 28: Insurance priorities
® Bolt-on acquisition opportunities =» Target new segments for profitable growth
Slide 29: Industrial and Safety brands
1) Atkins BAKERS RONSTRUCMOD -f SEISTRLAL Blackwoocs | Packaging House @PAYKELS © tor your ongineoring. eupplios Mullings Fasteners | “THE FASTENER SPECIALISTS” March 2005
Slide 30: Industrial and Safety businesses
CONTRIBUTION TO GROUP EBITA BUSINESSES No, @ industrial Products 116 @ Protector Alsafe 35 Mf Protector & NZ Safety | 46 @ Wilackwoods (NZ} 6 (. Packaging House uv @ Paykels 21 ‘March 2005
Slide 31: Industrial and Safety EBITA/Capital
EBITA/Capital 2; TE: ine 2000 Gm First HY EBITA 16 14 12 10 : | 8 Sn MIN TE 2 i oO N BB OG 2001 2002 2003 ia Full Year EBITA ~@~ EBITA/ Capital (R12)
Slide 32: Industrial and Safety priorities
® Network expansion and consolidation » Implementation of business improvement initiatives ® Benefits from continued spending in mining and infrastructure
Slide 33: Chemicals and Fertilisers
Slide 34: Chemicals and Fertilisers businesses
li IT ‘Be We i) 0) le i BUSINESSES No. i CSBP fertilisers CONTRIBUTION Manufacturing plants 5 TO GROUP EBITA Import and distribution centres 5 9% Depots 6 Regional Sales Representatives 26 Sales agents 154 CSBP chemicals Manufacturing plants 6
Slide 35: Chemicals and Fertilisers EBITA/Capital
EBITA/Capital % aes Vy Ly) _ 7 gi _ i | _ ] oe MO. 2000 2001 a y Vg a iy ae a i iy We 2002 a) iy y y ay _ Lo l < 8 7) ay a, 1 iil 2) an 2003 2004 25 on ® + 20 , 15 , 10 > HMI I 5 nn SMITE 2005 al First HY EBITA Full Year EBITA ~-@~ EBITA/ Capital (R12)
Slide 36: Chemicals and Fertilisers priorities
® Ammonium nitrate expansion #® Capacity expansion through debottlenecking = Liquid fertilisers - development of new markets * Development of export markets for sodium cyanide
Slide 37: Australian Railroad Group and Wespine
Australian Railroad Group (50% interest) Gresham Private Equity wesprne Wespine (50% interest) INDUSTRIES
Slide 38: Railroad Group priorities
# Completion of record grain haulage year = Improved performance from new contracts = Earnings growth offset by fuel and labour cost increases
Slide 39: Net investment of $40m by Wesfarmers
® Net investment of $40m by Wesfarmers # Divestments expected over the next several years
Slide 40: Private equity commitment
= Current commitment $241m (Wesfarmers $100m) = Further closing expected March (Wesfarmers up to additional $50m) ® Good deal “pipeline”
Slide 41: Portfolio management
improve performance of ¢ Portfolio management | ‘March 2005: y | | _ . ~=——r—“—C—.
Slide 42: Portfolio management actions
# Sale of Sotico timber ® Acquisition of Mobil LPG business (Tasmania) # $1 per share capital return * Ongoing evaluation of acquisition opportunities * Capital expenditure program
Slide 43: Financial Focus
Financial Focus Strict Disciplines Building Growth-Enabling Competencies Culture
Slide 44: Acquisitions and depreciation
Mle: 7 Y i Me, ic Ut” @m@ Acquisitions ~~ Depreciation
Slide 45: Capital Expenditure Programme
Capital ‘Expenditure Programr me 2005Budceet— tc ttt (i iswsst(i‘ Total: A$451m Industrial & Safety A$19m Chemicals & ©). AS247m Fertilisers : A$40m Hardware AS124m Insurance Other AS18m AS$3m March 2005 |
Slide 46: $1 per share Capital Return
$1 per share Capital Return j Wy 7 7 y 7 oem y i A yy y 7 Co : ; My 7 7 ee ve i j eS / _. : — 7 ie _ ] 1 j a ‘7 vy _ pga Le ae : 7 i Ys a ! i a i) Le _ _ L i | : y 3 Sd 8 : ) 1 : i D .: | : | ] A Me i |. ps A Z a il _ = i 7 Ve / a iE i a 2000 2001 2003 2004 Dec-04
Slide 47: a. — —r—“‘“___sSFh
a. — —r—“‘“___sSFh =-—_—=s——is
Wesfarmers — Investment Conferences New York and London, March 2005 on 6ix