Wesfarmers Limited · ASX:WES
Wesfarmers — Investor Presentation (April 2008)
22 slides from Wesfarmers's investor presentation, Apr 21, 2008
Slide 1: ASX cover letter for investor briefing presentation
For personal use only 21 April 2008 The Manager Company Announcements Office Australian Securities Exchange Dear Sir, PRESENTATION TO BE GIVEN AT AN INVESTOR BRIEFING, SYDNEY Following is a presentation that is to be given at an investor briefing (entitlement offer and business overview) in Sydney o
Slide 2: Investor Briefing: Entitlement Offer & Business Overview
For personal use only [DRAFT] Investor Briefing Entitlement Offer & Business Overview 22 April 2008 Westin Hotel, Sydney 1
Slide 3: Richard Goyder / Gene Tilbrook
For personal use only Richard Goyder / Gene Tilbrook Managing Director / Finance Director 2
Slide 4: Disclaimer
For personal use only Disclaimer The accelerated entitlements offer of new Wesfarmers ordinary shares (the Entitlement Offer) in Wesfarmers Limited (ABN 28 008 984 049) (Wesfarmers) is made: – to eligible institutional shareholders of Wesfarmers in an institutional offering memorandum distributed to
Slide 5: Equity Raising
Equity Raising For personal use only • Wesfarmers has funding commitments in place to refinance all of the outstanding Coles acquisition bridge facility – Fully underwritten 1 for 8 accelerated pro-rata entitlement offer to raise ~$2.5 billion – Bank commitments obtained to refinance the remaining $
Slide 6: Equity Raising Rationale
Equity Raising Rationale For personal use only • Wesfarmers believes an equity raising is in the best interests of shareholders • Fully underwritten entitlement offer 9 Funding Certainty • Avoids locking in unfavourable long-term debt facilities • Brings gearing to lower end of target range given St
Slide 7: Equity Raising Investment Highlights
Equity Raising Investment Highlights For personal use only • Allows shareholders to increase their investment at an Attractive Offer Price of $29.00 per share AttractiveTerms Terms — 19.6% discount to theoretical ex-entitlements price • Fully franked dividends of at least $2.00 per share for the Acc
Slide 8: Coles
For personal use only Coles • Significant business 1. New business operating model change required 2. Capture logistics and IT efficiencies • Integration largely Strategies 3. Key strategic customer programmes complete 4. Investment in store network • New management team to drive performance • Total
Slide 9: Home Improvement and Office Supplies: Bunnings
Home Improvement and Office Supplies Bunnings For personal use only 1. Profitable sales growth • Bunnings continuing to 2. Improving customer service perform strongly 3. Innovation & improvement of the Strategies - Consumer sentiment offer dampening 4. Team member performance 5. Business improvement
Slide 10: Home Improvement and Office Supplies: Officeworks
Home Improvement and Office Supplies Officeworks For personal use only • Integration largely complete 1.Strategy reset work well advanced 2.Defining core offer 3.Positive actions underway Strategies • Facing sales and margin — Store format trials — Range enhancements pressure as trading — Store team
Slide 11: Target
For personal use only Target 1. Focus on fundamentals • Positioned for any potential 2. Brand relaunch slow down in retail 3. Differentiation spending Strategies 4. Store network development – Inventory well controlled 5. Team member performance in difficult trading 6. Business improvements conditio
Slide 12: Kmart
For personal use only Kmart 1. Customer value proposition 2. Accelerate new store openings and • Decision to retain Kmart Strategies develop new store concept and invest in the business 3. Focus on cost control – Business can now focus 4. Build team capability on longer term strategy • 5.0% sales gr
Slide 13: Resources
For personal use only Resources • Resources to benefit from 1. Record coal prices for FY09 record export coal prices Industry Update 2. Cost pressures expected to continue • Expansion projects and feasibility studies underway 3. Ongoing rail and port constraints • Volumes continue to be impacted by
Slide 14: Insurance
For personal use only Insurance 1. Building the best team • Insurance industry facing 2. Leverage distribution network challenges Strategies 3. Pursue acquisition opportunities 4. Business improvement • Continuing consolidation 5. New business initiatives of brokers/distribution • Underwriting busin
Slide 15: Chemicals & Fertilisers
For personal use only Chemicals & Fertilisers • Positioned to capitalise on 1. Kwinana Ammonium Nitrate duplication strong chemicals demand Strategies 2. Sodium cyanide expansion 3. Continue to develop liquid fertiliser • Fertiliser earnings strategy dependent on winter rainfall • Fertiliser sales u
Slide 16: Industrial & Safety
For personal use only Industrial & Safety • Continuing to build stronger 1. Reposition businesses business foundations 2. Redesign the logistics model Strategies 3. Improve margins and rapidly reduce – Continuing improvements across capital base the supply chain 4. Focus on growth • Enhanced focus o
Slide 17: Energy
For personal use only Energy • WA LNG project 1. Improve – existing businesses progressing on budget Strategies 2. Expand – deliver projects – 2009 contribution 3. Evaluate - new opportunities • Sale of UNIGAS interest completed • Strong international energy prices Trading • Subdued market for some
Slide 18: Refinancing Programme Complete
For personal use only Refinancing Programme Complete • Wesfarmers has funding commitments in place to refinance the $4.0 billion Coles acquisition bridge facilities $bn US Notes (5 year) ~ 0.7 – Completed 10 April 2008 Net proceeds from Entitlement Offer ~ 2.5 – Fully underwritten New debt commitmen
Slide 19: Strengthened Financial Position
For personal use only Strengthened Financial Position • Strengthens Wesfarmers’ Pro-forma As at 31 balance sheet against a as at 31 $ million December backdrop of volatile debt December 2007 20071 markets – Pro-forma gearing of 47.6% Cash at Bank 453 453 (ND/E) Total Assets 37,110 37,110 – Brings ge
Slide 20: Dividend Guidance
For personal use only Dividend Guidance Dividend Guidance Maintained • Fully franked dividends of at least $2.00 per share in FY08 and FY09, subject to the availability of retained earnings and franking credits FY08 Final Dividend • New Wesfarmers Ordinary Shares issued under the Offer will be entit
Slide 21: WPPS
For personal use only WPPS • Eligible holders of WPPS entitled to participate in the Offer on the same terms as eligible Wesfarmers ordinary shareholders – Entitled to subscribe for 1 New Wesfarmers Ordinary Share for every 8 WPPS held Adjustment to WPPS Terms • WPPS terms provide for an adjustment
Slide 22: Questions
For personal use only Questions [DRAFT] 21