Wesfarmers Limited · ASX:WES
Wesfarmers — JP Morgan Investment Conference 2008
95 slides from Wesfarmers's conference presentation, Sep 3, 2008
Slide 1: Presentation to be given at JP Morgan Investment Conference
3 September 2008 The Manager Company Announcements Office Australian Securities Exchange Dear Sir, PRESENTATION TO BE GIVEN AT JP MORGAN INVESTMENT CONFERENCE - NEW YORK Following is a presentation that is to be given at a JP Morgan Investment Conference from 3 - 5 September 2008, together with a di
Slide 2: Investment Conference: Philosophy, Performance and Direction
Investment Conference Philosophy, Performance and Direction JP Morgan Investment Conference New York September 3 – September 5, 2008
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Wesfarmers Limited. The information contained in this presentation is for information purposes only and does not constitute an offer to issue or arrange to issue, securities or other financial products, nor is it intended to constitute legal, tax or
Slide 4: Long-term, consistent strategies
Long-term, consistent strategies MANAGING BALANCE SHEET EFFECTIVELY 3
Slide 5: Returns focus
Returns focus Objective: Satisfactory Returns to Shareholders Measured by TSR performance over the long term Improvement in ROE Growth in Invested Capital Growing divisional ROC Acquisitions and Expansion 4
Slide 6: Recent evolution of Wesfarmers
Recent evolution of Wesfarmers November 2007 Coles Group November 2006 Acquisition Events | Divestment Events | Growth Events OAMPS August 2003 Landmark rural December 2000 services business Australian Railroad Group February 2007 November 2000 January 2003 Crombie Lockwood Merger IAMA with Curragh
Slide 7: Portfolio of leading brands
Portfolio of leading brands Retail Businesses Industrial Businesses Hotels Insurance 6
Slide 8: Strong long-term performance
Strong long-term performance EPS WES Share (cents per share) Price(A$) 300 50 250 40 200 30 150 20 100 50 10 0 0 98 99 00 01 02 03 04 05 06 07 08 EPS (AGAAP) Girrah EPS Landmark EPS EPS (AIFRS) ARG EPS Wesfarmers Share Price Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-0
Slide 9: Group Results
Group Results
Slide 10: Highlights
Highlights • Operating revenue of $33.6bn – Increase of 15.4% excluding acquired Coles Group • Group profit after tax of $1,050 million • Earnings per share of 180.6 cents per share • Operating cash flow up 11.5% • FY08 dividends declared of $1,532 million up 77.1% – Full year dividend of $2.00 per
Slide 11: Group Performance Summary
Group Performance Summary Year ended 30 June ($m) 2008 2007 % Revenue 33,584 9,754 244.3 EBITDA 2,897 1,650 75.6 EBIT 2,243 1,305 71.9 Net profit after tax (pre non-trading items) 1,119 786 42.4 Net profit after tax (post non-trading items) 1,050 786 33.6 Operating cash flow 1,451 1,301 11.5 Earning
Slide 12: Divisional EBIT
Divisional EBIT Year ended 30 June ($m) 2008 2007 % Home Improvement & Office Supplies 625 528 18.4 Coles 474 n/a n/a Target 223 n/a n/a Kmart 114 n/a n/a Resources 423 338 25.1 Insurance 132 120 10.0 Industrial & Safety 130 115 13.0 Chemicals & Fertilisers 124 101 22.8 Energy 90 75 20.0 Other (incl
Slide 13: Non-Trading Items
Non-Trading Items Year ended 30 June ($m) 2008 Comment Property impairments, Coles (101) restructuring and redundancies Kmart (4) Property writedown Home Improvement & Office Supplies (4) Redundancies Energy 8 Sale of Unigas Sale of Koukia ($9m), Centrepoint Insurance (1) Alliance impairment ($10m)
Slide 14: Operating Divisions
Operating Divisions Wesfarmers
Slide 15: Coles
Coles • Significant business change 1. New business operating model underway 2. Capture logistics and IT efficiencies Strategies • Integration complete 3. Key strategic customer programmes • New management team to 4. Investment in store network drive performance • Food & Liquor comp sales growth of
Slide 16: Home Improvement and Office Supplies: Bunnings
Home Improvement and Office Supplies Bunnings • Bunnings continuing to 1. Profitable sales growth 2. Improving customer service perform strongly Strategies 3. Innovation & improvement of the offer 4. Team member performance • Focus on delivering on 5. Business improvements to lower costs strategic a
Slide 17: Home Improvement and Office Supplies: Officeworks
Home Improvement and Office Supplies Officeworks 1.Strategy reset work well advanced • Integration complete 2.Defining core offer Strategy 3.Positive actions underway Develop- ment — Store format trials • Facing sales and margin — Range enhancements pressure as trading — Store teams lifting in-store
Slide 18: Target
Target 1. Focus on fundamentals • Continuing to perform well 2. Brand relaunch 3. Differentiation Strategies 4. Store network development • Positioned well for any slow 5. Team member performance down in retail spending 6. Business improvements • Comp sales growth of 3.3% (23 Nov 07 Trading to 30 Ju
Slide 19: Kmart
Kmart 1. Customer value proposition 2. Accelerate new store openings and • Decision to retain Kmart and develop new store concept Strategies invest in the business 3. Focus on cost control – Business can now focus 4. Build team capability on longer term strategy • Comp sales growth of 2.2% (23 Nov 0
Slide 20: Resources
Resources • Resources to benefit from 1. Maximise export sales and optimise record export coal prices sales mix Strategies 2. Cost reduction programmes • Expansion projects and 3. Expansion opportunities feasibility studies underway 4. Extend product and market reach • Volumes continue to be impacte
Slide 21: Insurance
Insurance 1. Building the best team • Insurance industry facing 2. Leverage distribution network challenges Strategies 3. Pursue acquisition opportunities 4. Business improvement • Continuing consolidation of 5. New business initiatives brokers/distribution • Underwriting margins affected by severe
Slide 22: Chemicals & Fertilisers
Chemicals & Fertilisers • Positioned to capitalise on 1. Kwinana Ammonium Nitrate duplication strong chemicals demand 2. Sodium cyanide expansion Strategies 3. Continue to develop liquid fertiliser • Fertiliser earnings strategy dependent on winter • Increased production and contribution rainfall fr
Slide 23: Industrial & Safety
Industrial & Safety 1. Reposition businesses • Continuing to build stronger business foundations 2. Redesign the logistics model Strategies 3. Improve margins and rapidly reduce – Continuing improvements across the supply chain capital base • Enhanced focus on growth 4. Focus on growth • Revenue gro
Slide 24: Energy
Energy • WA LNG project on budget 1. Improve – existing businesses – 2009 contribution Strategies 2. Expand – deliver projects 3. Evaluate - new opportunities • Sale of UNIGAS interest completed • FY08 EBIT increased by 20%, to $90m Trading • Record high international energy prices Update • WA LNG p
Slide 25: Capital Management
Capital Management Wesfarmers
Slide 26: Capital Management
Capital Management • Net Debt / Equity of 47.4% at 30 June 2008 • Cash Interest Cover Ratio (rolling 12 months) to 30 June 2008 of 4.9 times, 5.1 times adjusted for non-trading items • Working capital increased by $661 million – Largely due to timing of creditor payments at year end • Budget capital
Slide 27: Outlook
Outlook
Slide 28: Outlook
Outlook • Coles focus intensifying • Ongoing impact of downturn in consumer sentiment • High prices and strong demand prospects for coal • Continuing strong demand for our industrial products • Signs insurance premiums are improving • Ongoing capital expenditure in all businesses 27
Slide 29: For all the latest news visit www.wesfarmers.com.au
For all the latest news visit www.wesfarmers.com.au 28
Slide 30: Investment Conference Discussion Pack
Investment Conference Discussion Pack JP Morgan Investment Conference New York September 3 – September 5, 2008 1
Slide 31: Index
Index 1 Philosophy, Performance and Direction 3 2 Sustainability 9 3 Group Overview 13 4 2008 Full Year Results 17 5 Operating Divisions 30 6 Capital Management 63 7 Outlook 65 8 Investor Relations Contacts and Information 66 2
Slide 32: Philosophy, Performance and Direction
Philosophy, Performance and Direction
Slide 33: Long-term, consistent strategies
Long-term, consistent strategies MANAGING BALANCE SHEET EFFECTIVELY 4
Slide 34: Returns focus
Returns focus Objective: Satisfactory Returns to Shareholders Measured by TSR performance over the long term Improvement in ROE Growth in Invested Capital Growing divisional ROC Acquisitions and Expansion 5
Slide 35: Recent evolution of Wesfarmers
Recent evolution of Wesfarmers November 2007 Coles Group November 2006 Acquisition Events | Divestment Events | Growth Events OAMPS August 2003 Landmark rural December 2000 services business Australian Railroad Group February 2007 November 2000 January 2003 Crombie Lockwood Merger IAMA with Curragh
Slide 36: Portfolio of leading brands
Portfolio of leading brands Retail Businesses Industrial Businesses Hotels Insurance 7
Slide 37: Strong long-term performance
Strong EPS long-term performance WES Share (cents per share) Price(A$) 300 50 250 40 200 30 150 20 100 50 10 0 0 98 99 00 01 02 03 04 05 06 07 08 EPS (AGAAP) Girrah EPS Landmark EPS EPS (AIFRS) ARG EPS Wesfarmers Share Price Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-0
Slide 38: Sustainability
Sustainability
Slide 39: Sustainability
Sustainability Financial performance • All our actions are directed towards satisfying our corporate objective of providing a satisfactory return to shareholders. To be sustainable, Wesfarmers must continue to achieve high standards of financial performance thereby allowing us to make the most meani
Slide 40: Sustainability
Sustainability Environmental responsibility • Our diverse range of businesses expose us to a number of challenging or Wesfarmers is a potentially challenging environmental issues, including waste disposal, contamination and greenhouse gas emissions. We set legal compliance as a member of the Dow min
Slide 41: Sustainability
Sustainability Sustainability reporting • Voluntarily publicly reporting on sustainability issues since 1998/99. The stand-alone Sustainability Report is published to coincide with the company's Annual General Meeting. The 2007 report runs to more than 90 pages of very detailed information on our en
Slide 42: Group Overview
Group Overview
Slide 43: Financial Summary
Financial Summary FY06* FY07 FY08 % Change pcp Operating Results Revenue A$m 8,859 9,754 33,584 244.3 EBITDA A$m 1,650 1,650 2,897 75.6 Earnings before interest and tax A$m 1,366 1,305 2,243 71.9 Net profit after tax A$m 869 786 1,050 33.6 Financial Position Total assets A$m 7,430 12,076 37,306 208.
Slide 44: Divisional Summary
Divisional Summary Activities FY08 Revenue FY08 EBIT FY08 EBIT (A$m) (A$m) Contribution The division comprises one of Australia's largest supermarket Coles ^ businesses, liquor retailing outlets, fuel and convenience outlets 16,876 474 20% and an online pharmacy business. Australasia's leading suppl
Slide 45: Divisional Summary (cont.)
Divisional Summary (cont.) Activities FY08 Revenue FY08 EBIT FY08 EBIT (A$m) (A$m) Contribution Mining of metallurgical and steaming coal to domestic and export Resources markets 1,311 423 18% Provider of underwriting, broking, premium funding and financial Insurance services activites in Australia,
Slide 46: 2008 Full Year Results
2008 Full Year Results
Slide 47: 2008 Full Year Results Performance Highlights
2008 Full Year Results Performance Highlights Group Performance Highlights Year ended 30 June ($m) 2008 2007 % Revenue 33,584 9,754 244.3 EBITDA 2,897 1,650 75.6 • Operating revenue of $33.6bn EBIT 2,243 1,305 71.9 – Increase of 15.4% excluding acquired Net profit after tax (pre non-trading items) 1
Slide 48: 2008 Full Year Results Performance Highlights
2008 Full Year Results Performance Highlights Divisional Performance Overview Year ended 30 June ($m) 2008 2007 % Home Improvement & Office Supplies 625 528 18.4 • Includes, for the first time, 7 months Coles 474 n/a n/a contribution from the ex-Coles Group Target 223 n/a n/a businesses Kmart 114 n/
Slide 49: Home Improvement & Office Supplies 2008 Full Year Performance
Home Improvement & Office Supplies 2008 Full Year Performance Highlights Financial Performance Home Improvement Year ended 30 June (A$m) 2008 2007 % 4,939 8.5 • Store on store cash sales growth of 11.3% Revenue Home Improvement 5,359 Office Supplies 802 n/a n/a • 6.3% lift in trade sales 6,161 4,939
Slide 50: Coles – 2008 Full Year Performance
Coles – 2008 Full Year Performance Highlights Financial Performance 23 November to 30 June 2008 ($m) 2008 • Market share stabilising Revenue 16,876 • New management team recruited EBITDA 714 Depreciation & Amortisation (240) • Introduction of multi-save promotions EBIT (pre Non-Trading Items) 1,2 47
Slide 51: Target – 2008 Full Year Performance
Target – 2008 Full Year Performance Highlights Financial Performance • EBIT margin strength maintained at 10.1% 23 November to 30 June 2008 ($m) 2008 • Acquired market share over the period Revenue 2,198 • Controlled all aspects of the business to grow profit EBITDA 256 Depreciation & Amortisation (
Slide 52: Kmart – 2008 Full Year Performance
Kmart – 2008 Full Year Performance Highlights Financial Performance • Delivered growth in margin 23 November to 30 June 2008 ($m) 2008 • Costs well controlled Revenue 2,454 EBITDA 145 • Refurbishing stores to improve in-store experience Depreciation & Amortisation (31) progressing well EBIT 114 • Go
Slide 53: Resources – 2008 Full Year Performance
Resources – 2008 Full Year Performance Highlights Financial Performance • Increased coal production for the Resources Division Year ended 30 June ($m) 2008 2007 % • Record production and sales from Curragh Revenue 1,311 1,134 15.6 • Strong recovery following January 2008 flood events EBITDA 571 520
Slide 54: Insurance – 2008 Full Year Performance
Insurance – 2008 Full Year Performance Highlights Financial Performance Year ended 30 June ($m) 2008 2007* % • Underwriting margins affected by severe weather and Gross Written Premium Underwritten 1,328 1,191 11.5 rate pressure EBITA Underwriting 80 97 (17.5) • Earnings growth in broking on like-fo
Slide 55: Industrial & Safety – 2008 Full Year Performance
Industrial & Safety – 2008 Full Year Performance Highlights Financial Performance % • Operating revenue up 8.4% to $1,309m Year ended 30 June ($m) 2008 2007 – Growth in all businesses Revenue 1,309 1,208 8.4 – Strong sales from resources and infrastructure sectors EBITDA 141 128 10.2 • Earnings incr
Slide 56: Chemicals & Fertilisers – 2008 Full Year Performance
Chemicals & Fertilisers – 2008 Full Year Performance Highlights Financial Performance Year ended 30 June ($m) 2008 2007 % • Construction and commissioning of AN expansion Revenue Chemicals 464 248 87.1 • Increased production across all chemical business units Fertilisers 533 345 54.5 • Improved cont
Slide 57: Energy – 2008 Full Year Performance
Energy – 2008 Full Year Performance Highlights Financial Performance • Record high international energy prices Year ended 30 June ($m) 2008 2007 % Revenue 565 463 22.0 • Successful integration of Coregas EBITDA 128 104 23.1 • WA LNG project remained on budget but delayed due Depreciation & Amortisat
Slide 58: Other Businesses – 2008 Full Year Performance
Other Businesses – 2008 Full Year Performance Highlights Financial Performance Holding Year ended 30 June ($m) 2008 2007 % Gresham Private Equity – Fund 1 Associates: Gresham Private Equity - Fund 1 51 4 - • Riviera only remaining investment Gresham Private Equity - Fund 2 67 12 12 • Wesfarmers’ cur
Slide 59: Operating Divisions
Operating Divisions
Slide 60: Home Improvement & Office Supplies
Home Improvement & Office Supplies WIDEST RANGE LOWEST PRICES BEST SERVICE 31
Slide 61: Store Network
Store Network at June 2008 2 165 Bunnings Warehouse Stores 61 Small format Bunnings Stores 115 Officeworks Stores 28 5 21 19 10 8 2 8 10 50 17 37 37 12 25 41 1 2 1 3 2 Excludes 14 Trade operational sites and 11 Harris Technology stores 32
Slide 62: Home Improvement & Office Supplies Performance
Home Improvement & Office Supplies Performance EBIT ROC Growth Strategies A$m % 700 35 Home Improvement Strategies Strong focus on “driving the basics” – Price, Range & Service 600 30 Dual store network investment – existing and new Profitable sales growth Warehouse store rollout continues – 10 to 1
Slide 63: Coles
Coles a 7. BELO “es: WHY PAY MORE! Good times start at ST pmcacercns)| CHOICE vorsce cans Liquor Superstore
Slide 64: Coles Store Network
Coles Store Network at 30 June 2008 Selling area Supermarkets (sqm) 1,551,858 Selling area Liquor (sqm) 268,898 7 8 11 152 233 79 79 92 5 116 67 66 31 6 43 240 246 5 208 158 192 157 750 Supermarkets 14 16 767 Liquor stores 95 Hotels 619 Convenience 35
Slide 65: Coles - Strategies
Coles - Strategies Strategies Details New top management appointments Streamlining of central and store functions New business operating model Store / Customer focus Clearer accountabilities and aligned measures Previous holistic supply chain strategy now segmented Capture logistics and IT efficienc
Slide 66: Target
Target 37
Slide 67: Target Store Network
Target Store Network at 30 June 2008 1 1 31 23 14 11 19 13 49 45 41 24 159 Target stores 118 Target Country stores 4 1 38
Slide 68: Target - Strategies
Target - Strategies Strategies Details Meeting customer needs – range, price and service Management of discounting and markdowns Focus on fundamentals In stock of wanted items New and exciting products An evolution of the “100% Happy” Brand relaunch A philosophy and positioning that is unique Levera
Slide 69: Kmart
ll — 7 Kmart where good times start | oa Tyre & Auto Service Xs
Slide 70: Kmart Store Network
Kmart Store Network at 30 June 2008 2 3 36 52 20 31 13 20 48 74 12 43 78 182 Kmart stores 5 5 3 263 KTAS centres 41
Slide 71: Kmart Strategies
Kmart Strategies Strategies Details Improve customer emotional engagement with Kmart Customer Value Proposition Balanced offer to attract families Target the value segment Products for casual and leisure lifestyle Product Leadership Leverage market share to build key destination categories Improve q
Slide 72: Resources
Resources Sl UWRRASFH 40 Premier Coal BENGALLA
Slide 73: Resources - Locations
Resources - Locations 13% Coal Premier Coal Curragh 27% Bengalla (40%) 44
Slide 74: Resources - Performance
Resources - Performance EBIT ROC Growth Strategies A$m % Opportunities / Challenges Strategic initiatives 800 80 Maximise export sales 700 70 Long-term export contracts in place Strong export customer demand Optimise sales mix 600 60 Maintain export price relativity 500 50 Cost pressures Cost reduct
Slide 75: Resources - Sales
Resources - Sales Coal Sales Volumes by Mine (FY08) Australian Hard Coking Coal Prices Mine Domestic Export Export US$/Tonne (Nominal) FOB Australia (annual verse spot) Total 400 (mtpa) Steaming Steaming Metallurgical 350 300 Curragh, QLD 2.4 6.5 8.9 250 Premier, WA 2.9 2.9 200 150 Bengalla*, NSW 1.
Slide 76: Resources: Curragh and Bengalla Expansion Studies
Resources Curragh and Bengalla Expansion Studies Curragh Expansion Study Bengalla Expansion Study • Feasibility study to expand exports to 8.0 • Development consent approval granted - 8.5mtpa • Potential expansion from 8.7mtpa to • Upgrade of CHPP to 2,200tph 10.7mtpa ROM • Additional overburden rem
Slide 77: Insurance
Insurance WESFARMERS FEDERATION INSURANCE LIMITED CROMBIE @ LOCKWOOD New Zealand's Insurance Brokers
Slide 78: Insurance - Locations
Insurance - Locations 3 1 6 2 4 13 21 1 2 1 1 4 12 8 18 11 6 18 6 Lumley General Australia 11 1 Lumley General New Zealand 10 6 Wesfarmers Federation Insurance 85 4 3 OAMPS 32 1 2 Crombie Lockwood 17 49
Slide 79: Insurance - Performance
Insurance - Performance EBITA ROC Growth Strategies A$m % Opportunities Strategies 160 35 Australian license/capital consolidation 140 30 Underwriting Business improvement System alignment and upgrade Enhanced focus on risk selection 120 Capital Strengthen MCR to achieve A- ringfencing 25 YourInsura
Slide 80: Insurance – Underwriting Performance
Insurance – Underwriting Performance Key Performance Indicators FY08 Gross Written Premium by Class of Business Year ended 30 June (%) 2008 2007 %pt Total: $1,328m Liability 18% Gross Earned Loss Ratio 64.8 60.8 (4.0) Marine 4% Net Earned Loss Ratio 65.4 62.4 (3.0) Engineering 7% Reinsurance Expense
Slide 81: Industrial & Safety
Industrial & Safety Australia New Zealand “All your Safety Industrial workplace needs” Specialist Specialists (formerly Mullings Fasteners) 52
Slide 82: Industrial & Safety Distribution Network
Industrial & Safety Distribution Network: 241 branch locations 2 1 NEW ZEALAND BUSINESSES No. 1 17 12 24 NZ Safety 9 4 Protector Safety 22 15 9 6 Blackwoods Paykels (NZ) 21 1 1 5 5 Packaging House 10 5 6 5 17 7 3 1 1 5 1 AUSTRALIAN BUSINESSES No. 11 7 1 1 1 24 22 Blackwoods 72 Atkins Electrical 6 10
Slide 83: Industrial & Safety - Performance
Industrial & Safety - Performance Growth Strategies EBIT ROC A$m % Opportunities Strategic Initiatives 140 18 Ongoing focus on customer service and delivery performance 16 Increase sales to existing 120 Developing capabilities and resources of our sales teams 14 customers Better value propositions 1
Slide 84: Chemicals & Fertilisers
Chemicals & Fertilisers Sa H(z QiNiP CSBP X04
Slide 85: Chemicals & Fertilisers - Locations
Chemicals & Fertilisers - Locations ■ CSBP fertilisers Manufacturing plant 5 Import and distribution centres 5 Depots 6 Regional Sales Representatives 27 Sales agents 135 ■ CSBP chemicals Manufacturing plants 10 ■ AV Manufacturing plants 2 ■ QNP (50%) Manufacturing plants 4 56
Slide 86: Chemicals & Fertilisers – Performance
Chemicals & Fertilisers – Performance Growth Strategies EBIT ROC A$m % Opportunities / Challenges Strategies 140 20 Maintain and grow business Kwinana AN duplication (+235ktpa) 18 120 Chemicals Upgrade of QNP (+30ktpa) underway 16 Improve performance of sodium Focus on plant performance achieving be
Slide 87: Energy
E = nergy KleenheatGas jy oe !' CAN, \\ Ss Wl unt engen Cc yaar LIQUIDE COregas © WESTERN AUSTRALIA Xo
Slide 88: Energy - locations
Energy - locations Industrial, medical and specialty gases Air separation units (ALWA) Air separation units (Coregas) Hydrogen/acetylene plants (Coregas) 2 1 1 1 Industrial gas depots/branches (ALWA) 1 Industrial gas depots/branches (Coregas) 1 LPG & LNG 14 5 LPG depots/branches 5 1 LPG extraction f
Slide 89: Energy - Performance
Energy - Performance Growth Strategies EBIT ROC Strategies Segment A$m % 100 50 Industrial gas growth in: • eastern states sales; and 90 • oil and gas sector 80 40 Maximise LPG production 70 Improve – Existing Businesses LPG distribution: 60 30 • customer focus; and • controllable costs 50 Pursue ne
Slide 90: Energy - Businesses
Energy - Businesses Activities Activities distributor and marketer of liquefied Activities Production, distribution and marketing of petroleum gas (LPG) and gas appliances to a design, construction, operatation and industrial and medical gases on Australia’s east broad range of domestic, commercial,
Slide 91: Other Businesses
Other Businesses Gresham: 50% interest in Gresham Partners, an independent investment (A$m) 2007 2008 bank focused on financial advisory services, private equity investment and property investment funds. Wesfarmers also Profit before tax: holds significant investments in Gresham's Private Equity Fun
Slide 92: Capital Management
Capital Management • Net Debt / Equity of 47.4% at 30 June 2008 • Cash Interest Cover Ratio (rolling 12 months) to 30 June 2008 of 4.9 times, 5.1 times adjusted for non-trading items • Working capital increased by $661 million – Largely due to timing of creditor payments at year end • Budget capital
Slide 93: Capital Expenditure (cash basis)
Capital Expenditure (cash basis) Actual Actual Year ended 30 June ($m) 2008 2007 Home Improvement & Office Supplies 301 196 Coles 349 n/a Target 47 n/a Kmart 42 n/a Resources 140 164 Insurance 17 15 Industrial & Safety 21 26 Chemicals & Fertiliser 201 199 Energy 118 78 Other 5 2 Total 1,241 680 64
Slide 94: Outlook
Outlook • Coles focus intensifying • Ongoing impact of downturn in consumer sentiment • High prices and strong demand prospects for coal • Continuing strong demand for our industrial products • Signs insurance premiums are improving • Ongoing capital expenditure in all businesses 65
Slide 95: Investor Relations Contact
Investor Relations Contact Wesfarmer’s Public Affairs and Investor Relations For further information on Wesfarmers including: Mark Triffitt (Media) 61 8 9327 4281 mtriffitt@wesfarmers.com.au Annual reports Financial results announcements Tanya Rybarczyk (Analysts) 61 8 9327 4323 trybarczyk@wesfarmer