Wesfarmers Limited · ASX:WES
Wesfarmers — Investor Presentation (May 2003)
43 slides from Wesfarmers's investor presentation, May 14, 2003
Slide 1: Bunnings Warehouse: Lowest Prices, Widest Range, Best Service
ouse wareh LOWEST PRICES WIDEST RANGE BEST SERVICE
Slide 2: Slide 2
Slide 3: Market overview, business overview, integration, store network, results review
ier i & MARKET T OVERVIEW: . BUSINESS OVERVIEW . BBC/HWH INTEGRATION : STORE NETWORK DEVELOPMENTS ~ “RE RESULTS REVIEW >, =
Slide 4: Slide 4
Slide 5: Warehouse
: Warehouse
Slide 6: Slide 6
Slide 7: Slide 7
Slide 8: Warehouse history: 1993 purchase, 1994 acquired by Wesfarmers
il “1993 purchased hs McEwans . “1994 4 acquired by Wesfarmers “1994 commenced Warehouses (50+ openings)
Slide 9: Business Overview: Sales and EBITA history
BUSINESS OVERVIEW Sales ($m) Sales & EBITA history EBITA ($m) 3900 3000 Acquisition of BBC 2500 Hardware 2000 + PRE BBC AQUISITION Sales CAGR 1995 to 2001 - 19% 500 + EBITA CAGR 1995 to 2001 - 31% 000 900 0 1995 1996 1997 1998 Gam Sales 1999 2000 2001 =——— EBIT (pre Goodwill) 2002 WP ad
Slide 10: Business Overview: Store Network
BUSINESS OVERVIEW le Store Network Warehouses si i 4 | Traditional WA Salvage ~ y As at 4 March 2003 eee excludes DCs, F&T, |
Slide 11: Slide 11
Slide 12: Property, store layout, capabilities and development
. property, Store Layout & : Development Capabilities a, ° Effective Recruitment &Training Programs ° Employee Tumover ° Strong track record af growt : n sales & Brofs ‘ou Ln Gs
Slide 13: Slide 13
Slide 14: BBC/HWH Integration
BBC/HWH INTEGRATION eam Network Peru & Stage 1 1 _ Merchandising a Induction 12, 000 Team Members . Re-structure ‘all’ Management Teams . Head Office: Rationalisation q 47 000% Distribution Centre Smithfield | eu
Slide 15: Integration: closures, openings, conversions, synergy benefits
59 Closures 8 11 obenings s : ‘BPOS Conversion i in » Australia = — 4 “Admin Processes Procedures Policies Low Volume Accounts Closure 42,000 “Synergy Benefits Exceeded rergets . Bunn ngs
Slide 16: Integration: inventory, culture, team development
° Rane. reviews . Inventory management 2 - Culture ——— . Team member development (NSW) : Operational and Merchandising ZURININGS
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Slide 18: Dedicated trade outlets and store conversions
EBedicated trade outlets ) ‘Traditional store network “ conversions’ La * Continue warehouse openings __ ” Zuni ics
Slide 19: Store Network Developments: Warehouse store openings
‘STORE NETWORK DEVELOPMENTS Warehouse Store Openings Under Construction - ~ a Committed opening program 8-12 per year ' ~ continued network restructure i.e. closings a as ‘ appropriate | (Closure to ¢ date - - 59) CUNNING
Slide 20: 9000 series
9000 series +. ie _ Garden & Leisure . = 20% - Decorator ee 43% Ve Heavy bench tools - - Flooring — 91%
Slide 21: Store Network Developments: upgrades and conversions
STORE NETWORK D DEVELOPMENTS network through upgrade : BWH & former HWH upgrades Wii Traditional store upgrades & conversions» Were.
Slide 22: Former HWH upgrade locations and costs
was bagi - Rem _ former HWH Garden £23 locations cost $16.1m ‘Electrical 87 locations —
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Slide 25: Warehouse Store Upgrades
STORE NETWORK DEVE borat Warehouse Store Upgrades | ul TAA, per annum - Continuous improvement & learning a "Merchandise range : + Too ShoplPaintGarden/Sericés = = .
Slide 26: Additional SKUs in upgraded stores
. 8-12,500 additional sku’s = oe
Slide 27: Store before upgrade
rl ingford (before) —<— i He i yl si
Slide 28: Hus NI
Hus NI
Slide 29: Your local Bunnings store is going to be bigger and better
YOUR LOCAL BUNNINGS STORE IS GOING TO BE BIGGER & BETTER - We ; E We're refurbishing your store to bring you an even ah, i E ; better shopping experience. New racking and a new layout means we can offer you an even bigger home improvement range ai the lowest prices every day! FALIECEDECIML. SONAR CH
Slide 30: Slide 30
Slide 31: Third Quarter Result
THIRD QUARTER RESULT MARCH QTR ($m) 2003] ~ 2002] Inc (Dec) | Revenue EBITA _ Amortisation BIT EBITA/Sales Ratio | —-868.5 781.1 : 11.2%| 18.2 12.5 76.3 13.1 2.5% (4.5%) 65.7 oat 3.9% 0 8%) ZO
Slide 32: Third Quarter YTD Result
ae THIRD ) QUARTER YTD RESULT | MARCH YTD 60) Aga a 5000 | i (Dec) | Revenue EBITA | Amortisation EBIT EBITA/Sales Ratio : 2,650.1) 2,323.6 14.1% 273.9 37.2 222.1 35.5 23.3% 4.9% | 236.7) 186.6 465% 10.4%) 9.6% 08% ZaING§
Slide 33: Store on store growth and regional results
Store on 1 store growth ~9% . - mixed results region cash & credit. ° Cash store 0 on . store growth +10% _ Market has softened — | Results okay i in difficu trading _ nvironment | Bunn NGS
Slide 34: Trade sales disappointing
- Trade sales disappointing : a) Low volume: account closure a hoa Strategic poor return businesses rationalised -& MLM/Cairns Roof/F&T/Plaster/ Kitchens & Appliances - “Sales tr transfer = isolated locations ~ Easter Shutdown .
Slide 35: Slide 35
Slide 36: Productivity Map - Bunnings Australia
PRODUCTIVITY MAP — BUNNINGS AUSTRALIA Exp & EBIT % 1997 1998 1999 2000 2001 2002 2003YTD wa Expenses @ Trading EBIT — Sales Bunnings Australia exc Property RUNNINGS
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Slide 40: Outlook and Priorities (Future)
e _ OUTLOOK & 7 & PRIORITIES (FUTURE) | ummary | — Demanding integration | Greater focus. on ‘continuous foe evement Greater cu « on development of store network _ - “Spenings & re- “merchandising Bunn ngs
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Slide 43: Bunnings Warehouse: Lowest Prices, Widest Range, Best Service
ouse wareh LOWEST PRICES WIDEST RANGE BEST SERVICE