Slide 1: 2012 Full-Year Results Supplementary Information
2012 Full-Year Results Supplementary Information (To be read in conjunction with the Full-Year Results Teleconference presentation) 16 August 2012
Slide 2: Presentation outline
2 Presentation outline Item Page 1 Coles 3 2 Home Improvement & Office Supplies 7 3 Target 11 4 Kmart 15 5 Insurance 19 6 Resources 26 7 Chemicals, Energy & Fertilisers 37 8 Industrial & Safety 43 9 Other Business & Capital Management 46
Slide 3: Coles
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Slide 4: Coles network
Coles network Coles 4 As at 30 June 2012 Selling Area 6 7 10 Supermarkets (sqm) 1,630,168 Liquor (sqm) – ex hotels 190,247 152 212 76 82 100 6 112 68 52 30 6 43 246 261 4 211 168 196 182 749 Supermarkets 15 15 792 Liquor stores 92 Hotels 627 Convenience stores
Slide 5: Store network movements
Coles 5 Store network movements Open at Re- Open at 30 June 2011 Opened Closed Branded 30 June 2012 Supermarkets Coles 696 19 (9) 4 710 Bi-Lo 45 - (2) (4) 39 Total Supermarkets 741 19 (11) - 749 Liquor 1st Choice 76 8 - - 84 Vintage Cellars 83 3 (4) (2) 80 Liquorland 626 24 (24) 2 628 Hotels 93 1 (2
Slide 6: Revenue reconciliation
Coles 6 Revenue reconciliation Year ended 30 June 2012 2011 ($m) Food & Convenience Total Food & Convenience Total Liquor Liquor Segment revenue (Gregorian)1 26,561 7,556 34,117 25,282 6,791 32,073 Less: Other revenue 205 12 217 171 15 186 Headline sales (Gregorian) 26,356 7,544 33,900 25,111 6,776
Slide 7: Home Improvement & Office Supplies
Home Improvement & Office Supplies
Slide 8: Bunnings network
Bunnings network Home Improvement and Office Supplies 8 As at 30 June 2012 206 Warehouse stores 58 Smaller format stores 2 36 Trade centres 33 5 10 25 7 4 10 3 2 61 17 7 17 24 1 51 1 9 5 1 2 1 2
Slide 9: Officeworks network
Officeworks network Home Improvement and Office Supplies 9 As at 30 June 2012 Retail Stores 1 139 Officeworks 2 Harris Technology Business 26 1 1 4 Fulfilment centres 13 1 8 2 Service centres 45 1 1 1 Print Hub 1 1 44 1 1 2
Slide 10: Store network movements
Home Improvement and 10 Office Supplies Store network movements Under Open at Open at construction at 30 June 2011 Opened Closed 30 June 2012 30 June 2012 Home Improvement Bunnings Warehouse 194 13 (1) 206 9 Bunnings smaller formats 59 1 (2) 58 1 Bunnings Trade Centres 36 2 (2) 36 - Office Supplies
Slide 11: Target
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Slide 12: Target network
Target network Target 12 As at 30 June 2012 2 1 34 19 28 12 18 10 55 46 47 24 179 Target Stores 122 Target Country 4 1
Slide 13: Store network movements
Target 13 Store network movements Under Open at Open at construction at 30 June 2011 Opened Closed 30 June 2012 30 June 2012 Target1,2 172 8 (1) 179 1 Target Country2 119 4 (1) 122 4 1 30 June 2012 includes three Target Urban stores & one Target Outlet store. 2 Target store numbers include one repla
Slide 14: Revenue reconciliation
Target 14 Revenue reconciliation Year ended 30 June ($m) 2012 2011 Segment revenue (Gregorian) 3,738 3,782 Less: Non sales revenue - - Headline sales (Gregorian) 3,738 3,782 Less: Gregorian adjustment1 34 11 Headline sales revenue (Retail2) 3,704 3,771 1 Adjustment to headline sales revenue to refle
Slide 15: Kmart
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Slide 16: Kmart network
Kmart network Kmart 16 As at 30 June 2012 185 Kmart stores 260 Kmart Tyre Auto Services centres 2 5 36 55 21 28 13 18 50 75 12 43 74 5 5 3
Slide 17: Store network movements
Kmart 17 Store network movements Open at Open at 30 June 2011 Opened Closed 30 June 2012 Kmart 187 1 (3) 185 Kmart Tyre & Auto 251 14 (5) 260
Slide 18: Revenue reconciliation
Kmart 18 Revenue reconciliation Year ended 30 June ($m) 2012 2011 Segment revenue (Gregorian) 4,055 4,036 Less: Non sales revenue 4 2 Headline sales (Gregorian) 4,051 4,034 Less: Gregorian adjustment1 31 14 Headline sales revenue (Retail2) 4,020 4,020 1 Adjustment to headline sales revenue to reflec
Slide 19: Insurance
Insurance 44 Wesfarmers Insurance Wesfarmers
Slide 20: Insurance business overview
Insurance 20 Insurance business overview Group/ Company Wesfarmers Insurance Australian New Zealand Premium Operations Broking Underwriting Underwriting Funding Lumley WI Business Affinity & Lumley WFI Lumley Business AUS NZ UK Premium Units Direct Solutions Funding Brands
Slide 21: Geographical presence
Geographical presence Insurance 21 As at 30 June 2012 3 1 UK 4 2 12 5 21 1 2 1 1 12 8 5 17 17 7 15 7 Lumley Insurance (Australia) 13 2 Lumley General New Zealand 11 8 WFI 79 2 4 1 OAMPS1 33 2 Crombie Lockwood 25 1 OAMPS New Caledonia location not shown.
Slide 22: Underwriting performance summary
Insurance 22 Underwriting performance summary Year ended 30 June ($m) 2012 2011 % Gross Written Premium 1,504 1,426 5.5 Net Earned Premium 1,186 1,062 11.7 Net Claims (932) (773) (20.6) Net Commission & Expenses (387) (388) 0.3 Underwriting Result (133) (99) (34.3) Insurance Margin (83) (51) (62.7)
Slide 23: Broking performance summary
Insurance 23 Broking performance summary Year ended 30 June ($m) 2012 2011 % Commission & Fee Income 235 201 16.9 Other Income 32 24 33.3 Total Income 267 225 18.7 Expenses (188) (163) (15.3) EBITA 79 62 27.4 EBIT 67 52 28.8 EBITA Margin (%) 29.6 27.5
Slide 24: Underwriting KPIs
Insurance 24 Underwriting KPIs Year ended 30 June (%) 2012 2011 % pt Gross Earned Loss Ratio 82.6 114.8 (32.2) Gross Earned Loss Ratio (excluding EQ2)1 71.0 114.8 (43.8) Net Earned Loss Ratio 78.5 72.8 5.7 Net Earned Loss Ratio (excluding EQ2)1 69.4 72.8 (3.4) Reinsurance Expenses (% GEP) 19.0 20.7
Slide 25: Gross written premium (underwriting)
Insurance 25 Gross written premium (underwriting) Liability Marine 13% 3% Engineering 4% Personal 26% Commercial Motor Total: $1,504m 25% Crop 2% Commercial 27%
Slide 26: Resources
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Slide 27: Business environment
Resources 27 Business environment • Metallurgical coal US$ price – Increase achieved for July to September quarter FY13 – Recent softening in spot export coal prices • But uncertain metallurgical coal demand outlook – Poor economic conditions in Eurozone – Slowing growth in China • A$/US$ exchange r
Slide 28: Resources financial summary
Resources 28 Resources financial summary Year ended 30 June 2012 2011 Commentary Production tonnes – (‘000 tonnes) Curragh & Bengalla1 12,436 10,096 Increased production achieved with expansion project completion at Curragh & Premier Coal 1,620 3,503 Bengalla; Premier Coal production to 30 December
Slide 29: Australian export coal market prices
Resources 29 Australian export coal market prices Source: Energy Publishing, Tex Report, Macquarie Research, CRU.
Slide 30: Curragh export metallurgical sales product mix
Curragh export metallurgical sales Resources 30 product mix FY12 Actual FY13 Forecast 7.2 million tonnes 8.0 – 8.5 million tonnes
Slide 31: Coal – production volumes
Resources 31 Coal – production volumes Year Ended Beneficial ('000 tonnes) Mine Coal Type Interest Jun 2012 Jun 2011 Curragh, QLD 100% Metallurgical 7,217 5,383 Steaming 2,884 2,470 Bengalla, NSW 1 40% Steaming 2,335 2,243 Total1 12,436 10,096 1 Wesfarmers attributable production.
Slide 32: Coal – sales volumes
Resources 32 Coal – sales volumes Year Ended Beneficial ('000 tonnes) Mine Coal Type Interest Jun 2012 Jun 2011 Curragh, QLD1 100% Metallurgical 7,151 5,334 Steaming 2,946 2,568 Bengalla, NSW2 40% Steaming 2,356 2,410 Total2 12,453 10,312 1 Curragh metallurgical coal sales excludes traded coal of 52
Slide 33: Curragh ongoing cost-control focus
Resources 33 Curragh ongoing cost-control focus • >20% reduction in unit cost in 2H FY12 versus 1H FY12 • 2H FY12 in bottom quartile of export FOB cash cost for hard coking coal producers Mine cash costs return to more Delayed commissioning of CHPP2 normal levels million tonnes $/tonne
Slide 34: FX hedging profile as at 30 June 2012
Resources 34 FX hedging profile as at 30 June 2012 Curragh Bengalla Current US$ Average Current US$ Average Year end sold forward A$ / US$ Year end sold forward A$ / US$ 30 June (US$m) hedge rate 30 June (US$m) hedge rate 2013 817 0.88 2013 211 0.92 2014 505 0.87 2014 153 0.89 2015 334 0.85 2015 120
Slide 35: Curragh mine expansion
Resources 35 Curragh mine expansion • Wesfarmers approved in November 2009 the investment of $286 million to expand Curragh metallurgical coal exports to 8.0 – 8.5mtpa • Practical completion achieved 29 June 2012 • Capital expenditure within budget • Stage 2 feasibility study expansion to 10mtpa met
Slide 36: Bengalla mine expansion
Resources 36 Bengalla mine expansion • Expansion to 10.7mtpa ROM through two stages: – Stage 1: 9.3mtpa ROM – Stage 2: 10.7mtpa ROM • Stage 1 expansion now complete • Project cost within budget • Stage 2 feasibility study ongoing
Slide 37: Chemicals, Energy & Fertilisers
Chemicals, Energy & Fertilisers
Slide 38: Fertiliser sales
Chemicals, Energy 38 & Fertilisers Fertiliser sales kt 1,200 2nd Half 1st Half 1,000 800 670 600 649 714 610 513 400 200 387 226 264 244 227 0 FY2008 FY2009 FY2010 FY2011 FY2012 10.2% uplift in volumes from previous year
Slide 39: Global fertiliser & ammonia pricing
Chemicals, Energy 39 & Fertilisers Global fertiliser & ammonia pricing US$/t 1,400 Urea (FOB Middle East) DAP (FOB US Gulf) Ammonia (FOB Middle East) 1,200 1,000 800 600 400 200 0 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Recovery in US$ prices following declines i
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 $/t 300 FY Average US$/t FY Average A$/t 250 200 150 100 50 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Harriman Front Page Asia
Slide 41: World LPG prices – Saudi CP
Chemicals, Energy 41 & Fertilisers World LPG prices – Saudi CP $/tonne 1,400 Saudi CP US$/t (propane) Saudi CP A$/t (propane) 1,200 1,000 800 600 400 200 0 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Significant volatility in LPG prices over the year
Slide 42: LPG production
Chemicals, Energy 42 & Fertilisers LPG production Production lower than previous year due to reduced content
Slide 43: Industrial & Safety
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Slide 44: Our business portfolio
Industrial & Safety 44 Our business portfolio Generalists Safety specialists Industrial specialists
Slide 45: Distribution network
Distribution network Industrial & Safety 45 As at 30 June 2012 217 industrial & safety branches & 135 gas distribution points Australia No. Indonesia 1 74 44 2 3 1 17 11 26 19 9 4 9 7 12 7 2 1 46 8 4 4 127 5 2 16 7 New Zealand No. 1 26 4 3 26 5 34 24 26 24 12 7 10 3 3 10 1 2 1 1 1 17 Note: Blackwood
Slide 46: Other Business & Capital Management
Other Business & Capital Management
Slide 47: Overview of the Group balance sheet
47 Overview of the Group balance sheet Year ended 30 June ($m) 2012 2011 Commentary Inventories 5,006 4,987 Trade & other payables (5,445) (5,090) Receivables & prepayments 2,564 2,263 Detailed working capital discussion provided on slide 48 (Supplementary Information) Other 417 264 Net working capi
Slide 48: Balance sheet - working capital
48 Balance sheet - working capital Year ended 30 June ($m) 2012 2011 Commentary Inventories 5,006 4,987 Inventory increased by $19 million (2012 v 2011) Home Improvement: Higher inventory following strong network expansion & increased sales Coles: Reduction from prior year which included safety st
Slide 49: For all the latest news visit www.wesfarmers.com.au
For all the latest news visit www.wesfarmers.com.au