Wesfarmers Limited · ASX:WES
Wesfarmers — Investor Day (March 2025)
57 slides from Wesfarmers's investor day presentation, Mar 27, 2025
Slide 1: Bunnings Investor Briefing and Site Tour ASX announcement
27 March 2025 The Manager Market Announcements Office Australian Securities Exchange Dear Manager BUNNINGS INVESTOR BRIEFING AND SITE TOUR Following is a presentation that will be given as part of an investor briefing and site tour of Bunnings on Thursday 27 March 2025, at 8:45am AWST / 11:45am AEDT
Slide 2: Investor briefing and site tour
Investor briefing and site tour 27 March 2025
Slide 3: Bunnings executive team
Bunnings executive team Mike Schneider Michael Howard Rachael McVitty Ryan Baker Managing Director Chief Financial Officer Chief Customer Officer Chief Operating Officer Genevieve Elliott Melissa O’Neill Damian Zahra Chief Information Officer Chief Corporate Affairs Officer Chief People Officer Bunn
Slide 4: Key messages
Key messages Bunnings has a significant opportunity to drive sustainable sales and earnings growth over the long term Expand and Grow and Drive Accelerate Enhance innovate our offer optimise our commercial digital, data and productivity through retail space growth retail media our entire operations
Slide 5: Our model and market
Our model and market
Slide 6: The Bunnings model delivers value for all stakeholders
The Bunnings model delivers value for all stakeholders Customers Team members Suppliers Community Shareholders +5m c.54,000 +2,000 $61m 71.5% Transactions per Team members Suppliers in community Return on capital week support in FY24 in 1H25 (R12)1 Price, range, Focused on providing Long-term Local,
Slide 7: Our strategic pillars
Our strategic pillars Lowest Prices Widest Range Best Experience • Relentless focus on everyday • Expansive ranging for • Connected and personalised lowest prices consumers and commercial customer experience customers • Enabled by warehouse format, • Expert advice and support – cost discipline and p
Slide 8: Enabled by the best team and connection to community
Enabled by the best team and connection to community Unique, empowered and high-performance culture Local and meaningful • Safe and inclusive work environment • Supported over 79,000 local community activities in FY24 • Industry-leading benefits and development • Helped raise over $61 million for co
Slide 9: Case study: response to ex-tropical cyclone Alfred
Case study: response to ex-tropical cyclone Alfred Demonstrated operational resilience • Over 40 sites temporarily closed between Sunshine Coast and Grafton during peak of the event – support provided by surrounding stores • Safely re-opened and overcame transport interruptions quickly to provide ac
Slide 10: Our model drives long-term value creation
Our model drives long-term value creation 20 2,500 18 16 2,000 14 Revenue ($b) 12 1,500 EBT ($m) 10 8 1,000 6 4 500 2 0 0 FY94 FY99 FY04 FY09 FY14 FY19 FY24 Revenue EBT Bunnings investor briefing and site tour | 9
Slide 11: Our addressable market is continually expanding
Our addressable market is continually expanding 2025 1994 Bunnings investor briefing and site tour | 10
Slide 12: Our addressable market is fragmented and highly competitive
Our addressable market is fragmented and highly competitive DÉCOR & HOME FURNISHINGS BUILDERS & TIMBER HARDWARE AND FIXINGS GARDENING PLUMBING & BATHROOM OUTDOOR LIVING ELECTRICAL TOOLS KITCHEN PETS Bunnings investor briefing and site tour | 11
Slide 13: Strong fundamentals underpin long-term growth
Strong fundamentals underpin long-term growth Population Housing availability, Housing alterations, Lifestyle and Innovation and growth churn and additions, repairs demographic trends technology commencements and maintenance Sustained population Structural housing Resilient and growing Ageing popula
Slide 14: Our diversified model is resilient through the cycle
Our diversified model is resilient through the cycle Comparable sales growth1 (accumulation index) • Resilient sales and earnings performance since FY19 despite (FY19 = 100) periods of a market-wide softness in residential construction, 140 cost of living pressures and COVID trading disruptions • Bu
Slide 15: A track record of growing return on space
A track record of growing return on space Sales and space growth1 (FY15-24) • Bunnings is focused on growing sales and earnings over the long term, with a demonstrated history of driving growth in sales density and gross margin return on space 98.9% • Over the last decade, Bunnings has grown sales c
Slide 16: Tangible space optimisation opportunity ahead
Tangible space optimisation opportunity ahead Sales density1 ($/m2, indexed to Bunnings) • Bunnings has identified significant opportunities to accelerate Sales density is 2.1x momentum in sales density and return on space growth Bunnings 2.1x • Material actionable opportunities exist across: – New
Slide 17: Expanding and innovating our offer
Expanding and innovating our offer
Slide 18: Continually evolving our range and offer
Continually evolving our range and offer Smart home Automotive Pets Rural Moving and storage Renewable energy Electric vehicle (EV) charging Assisted living Bunnings investor briefing and site tour | 17
Slide 19: While growing participation in low-share categories
While growing participation in low-share categories Kitchens Plumbing Electrical and Lighting +$5b +$7b +$10b addressable market addressable market addressable market Briefing and Site Tour | March 2025 Bunnings investor briefing and site tour | 18
Slide 20: A track record of expanding product ranges – Pets
A track record of expanding product ranges – Pets Pet food and expanded pet durables range launched in 2023 • Range more than 800 products in over 300 stores, across leading brands and own brands • Strong focus on customer value, e.g. via unique bulk pack sizes • Offer continues to resonate with cus
Slide 21: While driving the core – Tools (before)
While driving BEFORE the core – Tools New tool shop format and offer • Initial rollout completed across 49 stores in 1H25 – Better use of space instore, with higher racking and improved product display • Adding over 1,600 additional bays and +20% increase in Bunnings’ power tool range across leading
Slide 22: While driving the core – Tools (after)
AFTER While driving AFTER the core – Tools New tool shop format and offer • Initial rollout completed across 49 stores in 1H25 – Better use of space instore, with higher racking and improved product display • Adding over 1,600 additional bays and +20% increase in Bunnings’ power tool range across le
Slide 23: While driving the core – Paint
While driving the core – Paint New paint range • Reintroduced the iconic Wattyl brand into existing paint bays – Strengthened the exterior paint offer • Rolled out to over 250 stores • Delivering strong space productivity improvements • Continued opportunity to expand commercial paint Bunnings inves
Slide 24: With tangible opportunity ahead – Automotive
With tangible opportunity ahead – Automotive Expanding the automotive range • +$1.5b addressable market opportunity • Expanded offer of over 300 new automotive products • Ranging leading suppliers and own brands • Strong customer and supplier interest to date • Rolling out to over 300 stores in CY25
Slide 25: With tangible opportunity ahead – Energy & Renewables
With tangible opportunity ahead – Energy & Renewables Solar and battery EV charging Household solar and battery Home EV charging offer – powered by Instore customer EV charging network installation packages leading brands trials underway Actionable roadmap ahead Customer education and Finance option
Slide 26: Further complementary growth initiatives
Further complementary growth initiatives Own brands Services Marketplace • Portfolio of over 40 own brands • Over 50 service and installation • Complementary ranges of offers c.140,000 SKUs • Market-leading value and exclusive product innovation for customers • Driving strong product attachment • Sc
Slide 27: Growing and optimising our retail space
Growing and optimising our retail space
Slide 28: Our stores enable a compelling customer offer
Our stores enable a compelling customer offer Widest range, complemented by Unique destination experience A scaled and distributed network extended ranges online of +400 customer fulfilment nodes SPACE GROWTH Driving sales growth through SPACE OPTIMISATION Bunnings investor briefing and site tour |
Slide 29: Opportunity to drive continued space growth
Opportunity to drive continued space growth • Active and disciplined approach to long-term network planning Bunnings selling space1 (m2) and portfolio management • Investing in space growth to support and drive customer demand • Over FY19-24, Bunnings increased space by c.2% p.a., while increasing r
Slide 30: Space growth underpinned by network renewal
Space growth underpinned by network renewal Northland Warehouse (opened November 1996) • 13,200m2 retail space • Over 25 years old, undersized for catchment • Replaced in 2023 by Preston Warehouse Northland Warehouse (13,200m2) Preston Warehouse (opened June 2023) • Approx. 6,000m2 additional retail
Slide 31: Curated and localised ranges for smaller format stores
Curated and localised ranges for smaller format stores Smaller format store range localisation trials • Allocating more space for the best-selling products in each catchment and optimising stock weights • Initial concept trials completed, driving encouraging uplift in network sales • Further rollout
Slide 32: More space for new or expanded categories
More space for new or expanded categories Cleaning Automotive Window Furnishings Cleaning Flooring BEFORE1 BEFORE1 AFTER1 AFTER1 Window Cleaning Flooring Automotive Furnishings • Consolidated the window furnishings range to expand the • Consolidating the flooring range to expand the cleaning range i
Slide 33: Deeper curation within existing space and ranges
Deeper curation within existing space and ranges Small domestic appliances Fixings Reconfiguration of space to introduce new New and expanded collated fastener ranges product ranges Achieved without any additional floor space Bunnings investor briefing and site tour | 32
Slide 34: Driving commercial growth
Driving commercial growth
Slide 35: Material opportunity to drive commercial growth
Material opportunity to drive commercial growth The commercial segment (c.38% of sales in 1H25) operates in a large, growing and fragmented market. Bunnings’ diverse commercial customer base provides resilience through the cycle Whole of Build Equip the Trades Business and Organisations Scope Buildi
Slide 36: Commercial segment well positioned for improving market conditions
Commercial segment well positioned for improving market conditions Australian dwelling stock deficiency Market conditions expected to improve over the medium term 0 • Dwelling commencements expected to grow from (50,000) CY25, supported by the shortage in Australian (100,000) housing stock, easing m
Slide 37: Strengthening commercial offer and capabilities
Strengthening commercial offer and capabilities Commercial Sales and Digital Fulfilment Personalisation ranges service experience and loyalty Evolving assortment of Convenient and tailored Dedicated digital channels Diverse commercial delivery Repositioning the PowerPass complete and credible servic
Slide 38: Commercial offer complemented by specialist formats
Commercial offer complemented by specialist formats Frame and Truss Tool Kit Depot Beaumont Tiles • Established network of • Specialist commercial tool and • Australia’s leading hard surfaces timber and steel fabrication equipment format retailer • Driving sales attachment • Achieving strong digital
Slide 39: Accelerating digital, data and retail media
Accelerating digital, data and retail media
Slide 40: Digitally enabled customer experience continues to improve
Digitally enabled customer experience continues to improve Retail Commercial 2024 2022 Bunnings App launched 2023 2021 Order fulfilment Re-platformed optimisation 2020 2019 website Joined Online trading – Launched Trade Flybuys 2018 Commence AU & NZ websites in AU NZ App online trading Launched Prod
Slide 41: Our omnichannel model delivers substantial value
Our omnichannel model delivers substantial value 90% 2.5x of Australian online spend by Australian customers also shop in omnichannel customers store 2.0x store visit frequency for Australian omnichannel customers Bunnings investor briefing and site tour | 40
Slide 42: Data is enabling us to better understand and serve customers
Data is enabling us to better understand and serve customers Improving our understanding of Leveraging data insights to support our key customer attributes growing customer base +6m +25% Known and contactable Higher average order consumer and commercial value from known customers consumer customers
Slide 43: Increasing our use of data to drive growth
Increasing our use of data to drive growth Image of project advice EDM based on purchase Pre-shop Shop Post-shop Bunnings investor briefing and site tour | 42
Slide 44: Leveraging generative AI to support the unique Bunnings experience
Leveraging generative AI to support the unique Bunnings experience Customer AI chatbot trial • Trial launched in 2024 • Trained on Bunnings’ existing content library • Accelerating wider rollout and additional capability based on success of initial trial • Underpinned by commitment to privacy and da
Slide 45: Retail media at Bunnings: introducing
Retail media at Bunnings: introducing Complemented by emerging capabilities from the Wesfarmers Group retail media network Content Integration Since 2019 2023 Now The number one Home & Garden Trialled email and off-site An omnichannel retail media magazine in Australia media with supplier offering a
Slide 46: Seamless and relevant offers across channels
Seamless and relevant offers across channels Instore On-site Off-site 300 digital screens, with further Display banners on homepage Targeted campaigns across major rollout underway and high traffic pages platforms, including social media and Complemented by instore radio streaming video Sponsored se
Slide 47: Confidence in our proposition
Confidence in our proposition Trusted Connected At Scale Australia’s Most Trusted Brand 351 stores Across Australia and New Zealand +40m Website sessions each month Powered by leading loyalty and rewards programs +1.9m Monthly magazine readers - largest home and lifestyle magazine in Australia Bunni
Slide 48: Enhancing productivity through our entire operations
Enhancing productivity through our entire operations
Slide 49: Our team drives growth
Our team drives growth Attract, retain, develop Enable To deliver Unique enterprise agreements Through investment in technology The best customer support industry-leading flexibility, and tools to remove tasks and experience at the lowest cost: benefits, training and culture redeploy labour to custo
Slide 50: Resourcing optimisation to deliver the best customer experience at the lowest cost
Resourcing optimisation to deliver the best customer experience at the lowest cost Bunnings NPS • Improved rostering ease +13 pts and flexibility 67 • Aligned rosters with peak 54 trading periods and skill requirements • Structured approach to planning, streamlining and removing tasks to execute new
Slide 51: Driving productivity through investment in technology
Driving productivity through investment in technology Better team applications Improved systems Generative AI Electronic shelf labels • Consolidating and updating • Better demand planning • Team-facing chatbot • Proof of concept in 18 stores legacy store applications through new technology capabilit
Slide 52: Driving productivity through our supply chain
Driving productivity through our supply chain: incremental and customer led c.400,000 +2m +400 Annual deliveries to stores Annual deliveries to customers Fulfilment locations across Australia and New Zealand Bunnings investor briefing and site tour | 51
Slide 53: Productivity opportunities in store replenishment
Productivity opportunities in store replenishment Suppliers Supplier depot/s Transport network Store network Current state Future state benefits Evolving the store replenishment model over time by consolidating inbound supplier deliveries to unlock: Lower transport Lower store costs Improved safety
Slide 54: Building fulfilment capabilities
Building fulfilment capabilities Continuing to take an incremental approach to A leading fulfilment offer developing the customer fulfilment network Leveraging the store network – For Click & Collect, parcel deliveries and express deliveries – Unparalleled customer convenience and faster delivery op
Slide 55: Closing comments
Closing comments
Slide 56: Significant opportunity to drive sustainable sales and earnings growth
Significant opportunity to drive sustainable sales and earnings growth over the long term • Our model and addressable market continues to support growth and resilience through the cycle – A large and expanding addressable market with favourable long-term demand drivers – Diverse offer, customer base
Slide 57: Questions?
Questions? ZUNKINGS ZBUNNINGS ZUNNINGS BUNNINGS TRADE Marketplace TKDE. BEAUMONT TILES hammer 2UNNINGs TRADE media FRAME & TRUSS powored byOneReach