Wesfarmers Limited · ASX:WES
Wesfarmers — Debt Investor Presentation (2024)
22 slides from Wesfarmers's debt investor presentation, 2024
Slide 1: 2024 Half-Year Results Debt Investor Update
2024 HALF-YEAR RESULTS Debt Investor Update
Slide 2: Group Performance Overview
GROUP PERFORMANCE OVERVIEW 7 Wesfarmers
Slide 3: Wesfarmers Way
Wesfarmers Way Wesfarmers’ primary objective Anticipating the needs of our Looking after our team is to deliver a satisfactory return customers and delivering members and providing a safe, to shareholders. We believe it is competitive goods and services fulfilling work environment only possible to a
Slide 4: 2024 Half-year highlights
2024 Half-year Maintain focus on highlights responsible long-term management Revenue NPAT up 0.5% to up 3.0% to Well-positioned Continued to advance $22.7b $1.4b portfolio provides both resilience and growth key growth projects • Businesses with clear competitive advantages Operating cash flows Inte
Slide 5: Results reflect strong execution from high-quality businesses
Results reflect strong execution from Core retail offer of everyday products Driving sustainable long-term returns high-quality providing market-leading value is resonating with • Expanding addressable businesses more customers markets • Progressing growth platforms in health and lithium • Digitisin
Slide 6: Divisional highlights
Divisional highlights Bunnings Kmart Group WesCEF Officeworks Sales Earnings Sales Earnings Revenue Earnings Sales Earnings $9.9b $1,282m $6.1b $601m $1.1b $172m $1.7b $86m ↑ 1.7% ↑ 0.3% ↑ 5.0% ↑ 26.5% ↓ 21.2% ↓ 46.9% ↑ 1.8% ↑ 1.2% • Performance highlights resilience • Significant earnings growth re
Slide 7: Focus on long-term value, consistent with our objective
Focus on PEOPLE COMMUNITIES long-term value, 10.9 consistent with total recordable injury $46m our objective frequency rate (TRIFR) and a direct and indirect community continued focus on safety contributions 3.7% Indigenous employment1, maintaining employment parity CLIMATE AND 37 team members compl
Slide 8: Group performance summary
Group performance summary Half-year ended 31 December ($m)1 2023 2022 Var % Revenue 22,673 22,558 0.5 EBIT 2,195 2,160 1.6 EBIT (after interest on lease liabilities) 2,081 2,053 1.4 NPAT 1,425 1,384 3.0 Basic earnings per share (cps) 125.8 122.3 2.9 Return on equity (R12,%) 31.4 32.8 (1.4 ppt) Opera
Slide 9: Working capital and cash flow
Working capital and cash flow NET WORKING CAPITAL CASH MOVEMENT • Divisional operating cash flows increased 27.1%, with divisional cash Half-year end 31 December ($m) 2023 2022 realisation of 120%1 Receivables and prepayments 121 74 – Reflects disciplined inventory management in Bunnings, lower ship
Slide 10: Capital expenditure
Capital expenditure CAPITAL EXPENDITURE • Gross capital expenditure of $577m, down 14.6% Half-year end 31 December1 ($m) 2023 2022 Var % – Lower capex driven by completion of construction of the Mt Holland Bunnings Group 135 226 (40.3) concentrator in 2H23 and fewer new store openings in Bunnings du
Slide 11: Group outlook
Group outlook • Wesfarmers remains focused • Strong value credentials and • The performance of the • Wesfarmers maintains a strong on long-term value creation expanding offer make the Group’s industrial balance sheet and portfolio of and continues to invest to retail divisions well positioned busine
Slide 12: Balance Sheet and Debt Management
BALANCE SHEET AND DEBT MANAGEMENT
Slide 13: Strong and resilient balance sheet
Strong and resilient balance sheet Key principles NET FINANCIAL DEBT ($B) 1 • Maintaining a prudent capital structure and strong credit rating is important to 6 Wesfarmers 5 • Strong credit ratings 4 – Moody’s A3 (stable outlook) 3 – S&P A- (stable outlook) 2 1 Half-year update 0 -1 • Maintained sig
Slide 14: Pro-active debt management
Pro-active debt management • Continued focus on optimising debt maturity profile and maintaining liquidity DEBT MATURITY PROFILE1 headroom provided by bilateral bank facilities $m 2,500 • Ongoing extension of bank facilities in advance of maturities 2,000 • Actively managing the balance of exposure
Slide 15: Debt capital markets diversity
Debt capital markets diversity DCM GEOGRAPHICAL SOURCES1 DEBT BY TYPE1 45% 48% 55% 52% Capital Markets Sustainability-linked Financing Drawn Bank Facilities Other funding sources • Ongoing commitment to diversify funding sources, including the domestic and international debt capital markets • Austra
Slide 16: Sustainable finance update
Sustainable finance update March 2020 June 2021 October 2021 HY24 Update A$450m sustainability-linked loan A$1b sustainability-linked bond €600m sustainability-linked bond • Achieving proportional representation • Increasing the use of renewable electricity in the Group’s retail divisions (Bunnings,
Slide 17: Management of lease portfolio
Management of lease portfolio • Lease liabilities totalled $6.8b and represented 61% of Group fixed financial obligations as at 31 December 2023 Lease liabilities ($m) 1H24 FY23 1H23 • Average remaining committed lease term of 4.0 years Bunnings Group 3,610 3,568 3,738 (FY23: 4.1 years) Kmart Group
Slide 18: Dividends and capital management
Dividends and capital management Key principles SHAREHOLDER DISTRIBUTIONS1 • Dividend distributions determined based on franking credit availability, $/share earnings, credit metrics and cash flow 5.00 • Maximising value of franking credits for shareholders • Dividends are not progressive, and vary
Slide 19: Additional resources
Additional resources • Wesfarmers debt investor website https://www.wesfarmers.com.au/investor-centre/debt-investors • Wesfarmers sustainable finance website https://www.wesfarmers.com.au/investor-centre/debt-investors/sustainable-finance • Please email to the below address if you would like to be a
Slide 20: Glossary of terms (1 of 2)
Glossary of terms (1 of 2) Term AASB Australian Accounting Standards Board API Australian Pharmaceutical Industries Ltd Cash realisation ratio Operating cash flows as a percentage of net profit after tax, before depreciation and amortisation cps Cents per share DCM Debt capital markets Debt to EBITD
Slide 21: Glossary of terms (2 of 2)
Glossary of terms (2 of 2) Term ktCO2e Kilotonnes of carbon dioxide equivalent m Million Interest-bearing loans and borrowings less cash at bank and on deposit and held in joint operation, net of cross-currency interest Net financial debt rate swaps and interest rate swap contracts. Excludes lease l
Slide 22: Wesfarmers
NY] Wesfarmers