Wesfarmers Limited · ASX:WES
Wesfarmers — JP Morgan Investment Conferences, New York and Edinburgh, October 2009
100 slides from Wesfarmers's conference presentation, Oct 5, 2009
Slide 1: Cover letter to ASX for JP Morgan conferences
For personal use only 5 October 2009 The Manager Company Announcements Office Australian Securities Exchange Dear Sir, JP MORGAN INVESTMENT CONFERENCES NEW YORK, 5 – 6 OCTOBER 2009 AND EDINBURGH, 8 – 9 OCTOBER 2009 Following is a presentation that is to be given at the JP Morgan investment conferenc
Slide 2: Philosophy, Performance and Direction
For personal use only Philosophy, Performance and Direction JPMorgan Investor Conference Edinburgh October 2009
Slide 3: Disclaimer
Disclaimer For personal use only 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 con
Slide 4: Philosophy Based On A Single Focus
For personal use only Philosophy Based On A Single Focus Satisfactory Returns To Shareholders
Slide 5: Long-term, consistent strategies
Long-term Long term, consistent strategies For personal use only MANAGING BALANCE SHEET EFFECTIVELY 4
Slide 6: Strong long-term performance
Strong long-term performance For personal use only EPS (cents per share) 300 250 200 150 100 50 0 98 99 00 01 02 03 04 05 06 07 08 09 EPS (AGAAP) Girrah EPS Landmark EPS EPS (AIFRS) ARG EPS Aug-99 Aug-00 Aug-01 Aug-02 Aug-03 Aug-04 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 Wesfarmers TSR Index All Ordinari
Slide 7: Portfolio of leading brands
Portfolio of leading brands For personal use only Retail Businesses Industrial Businesses Hotels Ins rance Insurance 6
Slide 8: Management Team
Management Team For personal use only Managing Director Richard Goyder Fi Finance Di Director t T Terry Bowen B Divisional Managing Directors Home Improvement & Office Supplies John Gillam Coles Ian McLeod T Target L Launa IInman Kmart Guy Russo Insurance Rob Scott Chemicals & Fertilisers Ian Hansen
Slide 9: Group Results
For personal use only Group Results
Slide 10: Group Performance Highlights
Group Performance Highlights For personal use only • Significant g increases in revenue and earnings g – Record Resources earnings – Inclusion of full period of Coles, Target, Kmart and Officeworks – Strong Retail performance • Operating revenue of $51 $51.0 0 billion • Group profit after tax of $1.
Slide 11: Group Performance Highlights (cont)
Group Performance Highlights (cont) For personal use only • Coles turnaround continues to meet Wesfarmers’ expectations p • Bunnings and Target delivered strong performances • Officeworks and Kmart transformations progressing well – Kmart still at an early stage • R Record dRResources production d t
Slide 12: Group Performance Summary
Group Performance Summary For personal use only Year ended 30 June ($m) 2009 2008* % Revenue 50,982 33,584 51.8 EBITDA 4,001 2,889 38.5 EBIT 2,977 2,229 33.6 Net profit after tax (pre significant items) 1,641 1,132 45.0 Net profit after tax (post significant items) 1,535 1,063 44.4 Operating cash fl
Slide 13: Divisional EBIT
Divisional EBIT For personal use only Year ended 30 June ($m) 2009 2008* % Coles 831 475 n.m. Home Improvement 659 589 11.9 pp Office Supplies 65 36 n.m. Target 357 221 n.m. Kmart 109 111 n.m. Resources 915 423 116 3 116.3 Insurance 91 122 (25.4) Industrial & Safety 114 130 (12.3) Ch i l & Fertilise
Slide 14: Non-Trading & Significant Items
Non-Trading & Significant Items For personal use only FY09 FY09 ($m) Segment Comment P t Pre-tax P tt Post-tax Property impairments partially offset Coles (52) (60) Other by write-back of store exit provision Kmart (70) (49) Other Supply chain and other restructuring Single g licence and other restr
Slide 15: Operating Divisions
For personal use only Operating Divisions
Slide 16: Coles
Coles For personal use only Coles Food & Liquor Comp Sales by Quarter (FY09)# 0.08 7.3% 1. Building a solid foundation 0.07 6.6% 0.06 Strategies 2. Delivering consistently well 0.05 3.8% 3. Driving the Coles difference 0.04 0.03 • Food & Liquor comp sales growth of 0 02 0.02 1.3% 4 6% (7.3% 4.6% (7
Slide 17: Coles – Strategy years – phases of recovery
Coles – Strategy 5 years – 3 phases of recovery For personal use only Building a Solid Delivering Driving the Coles F Foundation d ti C Consistently i t tl Well W ll Diff Difference Performance • Culture of continuous • Embed the new culture improvement • Create a strong top team • Team member devel
Slide 18: Coles – Strategy
Coles – Strategy Phase 1 Progress For personal use only Create a strong top team 100% of leadership team new to Coles/role with over 125 years of retailing experience 50% of zone manager new, experience. new 44% of Merchandise General Managers new. Continual increase in expectations and calibre of t
Slide 19: Home Improvement and Office Supplies – Bunnings
Home Improvement and Office Supplies For personal use only Bunnings 1. Profitable sales growth • Maintain strength of focus on 2. Better stock flow customer and business Strategies 3. Engaging and developing a strong team improvements 4. Improving productivity and execution • 30 – 40 Warehouses to o
Slide 20: Home Improvement and Office Supplies – Officeworks
Home Improvement and Office Supplies For personal use only Officeworks 1. Improving the customer offer • Continued C ti d ttraction ti ffrom resett 2. Improving customer service strategic agenda Strategies 3. Building a stronger team 4 Reduced 4. R d d costs t and d complexity l it • Small business
Slide 21: Target
Target For personal use only 1. Profitable store sales growth through • Absolute focus on the network expansion and volume mix customer and delivering Strategies 2. Product leadership supported by new what they demand and differentiated product development 3. Sustainability • Cost control continued
Slide 22: Kmart
Kmart For personal use only 1. Outstanding customer experience • Profitability improving 2. Ranges customers want through Renewal strategies 3. Great value everyday Strategies 4. Clear communication • Rebuilding R b ildi ffor sustainable t i bl 5. Every site a success growth will take time 6. Best p
Slide 23: Resources
Resources For personal use only • Forecast Curragh 1. Maximise export sales and optimise sales l mix i metallurgical sales of 6.2 – 2. Cost reduction programmes 6.7mt in FY10 Strategies 3. Expansion opportunities • Positive signs of global steel 4. Extend product and market reach 5. Sustainability p
Slide 24: Insurance
Insurance For personal use only Underwriting • Management and licence 1. Business improvement restructuring in Aust. 2. New business – retail distribution Strategies y completed recently p Broking 1. Business improvement • Continuing consolidation of 2. Acquisitions and new businesses brokers/distri
Slide 25: Industrial & Safety
Industrial & Safety For personal use only 1. Increase sales to existing customers • Challenging market 2. Target higher growth sectors conditions with business Strategies 3. Increase SME penetration activity slowdown from 2H09 4. Increase competitiveness • Strengthening capabilities • Solid result g
Slide 26: Chemicals & Fertilisers
Chemicals & Fertilisers For personal use only • Impacted by Varanus Island 1. Growth through g expansions p 2. Optimise cost and capital gas disruption Strategies 3. Sustainability • Demand D d ffor A Ammonium i 4. Improve capabilities and people development Nitrate remains strong • AN sales volumes
Slide 27: Energy
Energy For personal use only 1 Improve – existing businesses 1. • WA LNG project j t operational Strategies 2. Expand – deliver projects 3. Evaluate - new opportunities • Impacted by Varanus Island gas disruption • Industrial gas EBIT growth despite weaker k customer d demans FY09 Trading • Gas disr
Slide 28: Capital Management
For personal use only Capital Management
Slide 29: Capital Management
Capital Management For personal use only • Net Debt to Equity of 18.3% at 30 June 2009 – Gross debt $6.2bn, Net debt $4.4bn (net of cash at bank and on deposit) • Cash Interest Cover Ratio of 5.3 times (rolling 12 month basis) • Net Debt to EBITDA of 1.11 times at 30 June 2009 • S&P rating ti BBB+ B
Slide 30: Debt Maturity Profile (at June 09)
Debt Maturity Profile (at 30 June 09) For personal use only • Relatively low levels of debt going forward • Cash to be used for funding upcoming dividends, seasonal working capital, debt repayments and potential growth opportunities • $4.6bn $4 6b hhedged d d iin FY10 with ith allll iin costt off d
Slide 31: Cashflow
Cashflow For personal use only • Strong operating cash generation across most divisions • Retail strategies delivered improvements in working capital during the year, partly offset by higher working capital levels in CSBP $m % 3,500 140 3 000 3,000 120 2,500 100 2,000 80 1,500 60 1,000 40 500 20 0 0
Slide 32: Capital Expenditure
Capital Expenditure For personal use only Actual Actual • Strong St investment i t t in i organic i growth th Y Year ended d d 30 June J ($ ($m)) 2009 2008^ opportunities across the Group Home Improvement & Office Supplies 377 301 Coles 567 349 • Retail - Store roll outs and Target 92 47 refurbishme
Slide 33: Outlook
Outlook For personal use only • Cautiously Cau ous y optimistic op s c about abou the e economic eco o c ou outlook oo in FY10 0aalthough oug cognisant of a degree of ongoing fragility • Underlying retail trading conditions remain somewhat volatile and difficult to predict despite recent signs of gr
Slide 34: For all the latest news visit www.wesfarmers.com.au
For personal use only For all the latest news visit www.wesfarmers.com.au 33
Slide 35: Investment Conference Discussion Pack
For personal use only Investment Conference scuss o Pack Discussion ac JP Morgan Investment Conferences New York and Edinburgh October 2009 1
Slide 36: Index
Index For personal use only 1 Philosophy, Performance and Direction 3 2 Sustainability 8 3 Group Overview 12 4 2009 F Fullll Y Year R Results lt 16 5 Operating Divisions 29 6 Capital Management 63 7 Outlook 65 8 Investor Relations Contacts and Information 66 2
Slide 37: Philosophy, Performance and Direction
For personal use only Philosophy, Performance and Direction
Slide 38: Long-term, consistent strategies
Long-term Long term, consistent strategies For personal use only MANAGING BALANCE SHEET EFFECTIVELY 4
Slide 39: Recent evolution of Wesfarmers
Recent evolution of Wesfarmers November 2007 For personal use only Coles Group Acquisition Events | Divestment Events | Growth Events | Capital Events November 2006 OAMPS February/March 2009 3:7 rights issue April 2001 August 2003 April p 2008 Westralian Farmers Co-operative and Landmark rural 1:8 r
Slide 40: Portfolio of leading brands
Portfolio of leading brands For personal use only Retail Businesses Industrial Businesses Hotels Insurance 6
Slide 41: Strong long-term performance
Strong long long-term term performance For personal use only EPS (cents per share) 300 250 200 150 100 50 0 98 99 00 01 02 03 04 05 06 07 08 09 EPS (AGAAP) Girrah EPS Landmark EPS EPS (AIFRS) ARG EPS Aug-99 Aug-00 Aug-01 Aug-02 Aug-03 Aug-04 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 Wesfarmers TSR Index Al
Slide 42: Sustainability
For personal use only Sustainability
Slide 43: Sustainability
Sustainability For personal use only Financial performance • All our actions are directed towards satisfying y g our corporate p objective j of p providing g a satisfactory return to shareholders. To be sustainable, Wesfarmers must continue to achieve high standards of financial performance thereby
Slide 44: Sustainability
Sustainability For personal use only 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, member of the Dow packaging, environmental contamination, energy use and
Slide 45: Sustainability
Sustainability For personal use only Sustainability reporting • Voluntarily publicly reporting on sustainability issues since 1998/99. The stand-alone Sustainability Report is published to coincide with the company's p y Annual General Meeting. g The 2008 report p runs to more than 130 p pages g of
Slide 46: Group Overview
For personal use only Group Overview
Slide 47: Financial Summary
Financial Summary For personal use only FY09 FY08* % Change pcp Operating Results Revenue A$m 50,982 33,584 51.8 EBITDA A$m 4,001 2,889 38.5 Earnings before interest and tax A$m 2,977 2,229 33.6 Net profit after tax (pre significant items) A$m 1,641 1,132 45.0 Net profit after tax (post significant
Slide 48: Divisional Summary
Divisional Summary For personal use only Activities FY09 Revenue FY09 EBIT FY09 EBIT (A$m) (A$m) Contribution* The division comprises one of Australia's largest supermarket Coles businesses, liquor retailing outlets, fuel and convenience outlets. 28,799 831 25% Australia and New Zealand's leading su
Slide 49: Divisional Summary (cont.)
Divisional Summary (cont.) (cont ) For personal use only Activities FY09 Revenue FY09 EBIT FY09 EBIT (A$m) (A$m) Contribution* Mining of metallurgical and steaming coal to domestic and export Resources markets 2,411 915 28% Provider of underwriting, broking, premium funding and financial Insurance s
Slide 50: 2009 Full Year Results
For personal use only 2009 Full Year Results
Slide 51: 2009 Full Year Results – Group Performance Highlights
2009 Full Year Results For personal use only Group Performance Highlights Year ended 30 June (A$m) 2009 2008* % Revenue 50,982 33,584 51.8 • Operating revenue of A$51.0bn EBITDA 4,001 2,889 38.5 EBIT 2,977 2,229 33.6 – Significant revenue growth in the Resources, Net profit after tax (pre significan
Slide 52: Divisional Performance Overview
2009 Full Year Results For personal use only Divisional Performance Overview Year ended 30 June (A$m) 2009 2008* % Coles 831 475 n.m. • Coles turnaround continues to meet Home Improvement 659 589 11.9 Wesfarmers’ expectations Office Supplies 65 36 n.m. Target 357 221 n.m. • Bunnings and Target deliv
Slide 53: Coles – 2009 Full Year Performance
Coles – 2009 Full Year Performance For personal use only Highlights Financial Performance Food Year ended 30 June (A$m) 2009 2008* Revenue 28,799 16,876 • Encouraging sales trend with 4Q comp sales of 7.3% 7 3% (Easter 1 EBIT 831 475 adjusted) Food & Liquor Revenue 3 22,506 12,825 • Supply chain tra
Slide 54: Home Improvement & Office Supplies 2009 Full Year Performance
Home Improvement & Office Supplies 2009 Full Year Performance For personal use only Highlights Financial Performance – Home Improvement Home Improvement Year ended 30 June (A$m) 2009 2008 % Revenue 5,845 5,359 9.1 • Store on store cash sales growth of 10.1% EBIT 659 589 11.9 • 2.8% decline in trade
Slide 55: Target – 2009 Full Year Performance
Target – 2009 Full Year Performance For personal use only Highlights Financial Performance • EBIT margin strength maintained at 9.4% Year ended 30 June (A$m) 2009 2008* • FY09 comp store sales growth of 4.2% Revenue 3,788 2,198 – All departments increased sales over the period EBIT 357 221 EBIT marg
Slide 56: Kmart – 2009 Full Year Performance
Kmart – 2009 Full Year Performance For personal use only Highlights Financial Performance • Profitability improving through Renewal Year ended 30 June (A$m) 2009 2008* – Exiting unprofitable categories Revenue 3,998 2,454 – Margin improvement with reduced discounting EBIT^ 109 111 EBIT margin (%) 2.
Slide 57: Resources – 2009 Full Year Performance
Resources – 2009 Full Year Performance For personal use only Highlights Financial Performance • Record full year production, sales and earnings Year ended 30 June ($m) 2009 2008 % • Highest h achieved h d prices ffor metallurgical ll l and d steaming Revenue1 2,411 1,311 83.9 coal (up to March 2009)
Slide 58: Insurance – 2009 Full Year Performance
Insurance – 2009 Full Year Performance For personal use only Highlights Financial Performance • Frequency and severity of weather events affected Year ended 30 June ($m) 2009 2008^ % underwriting claims and earnings Gross Written Premium Underwritten 1,358 1,328 2.3 Total Revenue 1,720 1,649 4.3 • P
Slide 59: Industrial & Safety – 2009 Full Year Performance
Industrial & Safety – 2009 Full Year Performance For personal use only Highlights Financial Performance • Solid result, given challenging market conditions Year ended 30 June ($m) 2009 2008 % – Business activity slow down in 2H09 Revenue 1,294 1,309 (1.1) EBITDA 127 141 (9.9) • Continued strong DIFO
Slide 60: Chemicals & Fertilisers – 2009 Full Year Performance
Chemicals & Fertilisers – 2009 Full Year Performance For personal use only Highlights Financial Performance • Ammonium nitrate sales volumes up 52.1% Year ended 30 June ($m) 2009 2008 % • Disruption of contracted gas supplies impacted Revenue Chemicals 615 464 32.5 Fertilisers 547 533 2.6 production
Slide 61: Energy – 2009 Full Year Performance
Energy – 2009 Full Year Performance For personal use only Highlights Financial Performance • Reduced earnings largely due to a reduction in Year ended 30 June ($m) 2009 2008 % international LPG prices and gas supply disruption Revenue 598 565 5.8 EBITDA 122 128 (4.7) – Estimated gas supply EBIT impa
Slide 62: Other Businesses – 2009 Full Year Performance
Other Businesses – 2009 Full Year Performance For personal use only Highlights Financial Performance Holding Year ended 30 June (A$m) 2009 2008 % Gresham Private Equity Share of net profit/(loss) of associates: • Carrying value of investment in Gresham Private Gresham Private Equity Funds Various (5
Slide 63: Operating Divisions
For personal use only Operating Divisions
Slide 64: Coles
For personal use only Coles 30
Slide 65: Coles Network
Coles Network For personal use only at 30 June 2009 Selling Area Supermarkets (sqm) 1,600,578 7 8 11 Liquor (sqm) – ex hotels 173,886 153 230 78 81 93 6 117 67 62 30 6 43 251 252 5 211 161 195 162 763 Supermarkets 14 15 q 775 Liquor stores 95 Hotels 625 Convenience 31
Slide 66: Coles – Strategy
Coles – Strategy For personal use only Phase 1 of turnaround on track… Building a Solid Delivering Driving the Coles Foundation Consistently Well Difference Performance f • Culture C lt off continuous ti • Embed the new culture improvement • Create a strong top team • Team member development • Stron
Slide 67: Coles – Strategy
Coles – Strategy For personal use only Phase 1 Progress Create a strong top team 100% of leadership team new to Coles/role with over 125 years of retailing experience. 50% of zone manager new, 44% of Merchandise General Managers new. Continual increase in expectations and calibre of team. Cultural c
Slide 68: Home Improvement & Office Supplies
Home Improvement & For personal use only Office Supplies WIDEST RANGE LOWEST PRICES BEST SERVICE 34
Slide 69: Bunnings Network
Bunnings Network For personal use only at 30 June 2009 175 Warehouse stores 56 Smaller format stores 2 22 Trade Centres 29 5 7 22 7 3 8 2 1 53 16 5 12 25 43 5 4 2 1 1 35
Slide 70: Home Improvement Performance
Home Improvement Performance For personal use only Growth Strategies EBIT ROC Home Improvement p Strategies g A$m $ % Profitable sales growth Improving service 700 40 Expanding the network 35 600 Improving the merchandise offer 30 Better stock flow Improving the end to end supply chain to lift in- 5
Slide 71: Office Suppliers Performance
Office Suppliers Performance For personal use only Growth Strategies Officeworks & Harris Technology Network – 30 June ‘09 Officeworks Strategies g Retail Stores Improving the customer offer Enhance and expand the range Provide more useful customer information 123 Officeworks Rollout new special ord
Slide 72: Target
For personal use only Target 38
Slide 73: Target Performance
Target Performance For personal use only Growth Strategies Latest Store Design - Sunbury Strategies Details Profitable sales growth Continued investment in the store portfolio and targeted mix of volumes in product ranges Product leader Continued focus on core categories, supported by new and differ
Slide 74: Kmart
For personal use only Kmart 40
Slide 75: Kmart Store Network
Kmart Store Network For personal use only at 30 June 2009 2 3 36 52 20 28 13 20 50 72 12 43 74 184 Kmart stores 255 KTAS centres 5 6 3 41
Slide 76: Kmart Performance
Kmart Performance For personal use only Growth Strategies Strategies Details Customer Continue to improve the in-store experience and rebuild Customer customer trust Outstanding Product Build on-trend on trend profitable categories that deliver quality and C t Customer reliability People Experience
Slide 77: Resources
For personal use only Resources 43
Slide 78: Resources - Locations
Resources - Locations For personal use only Coal Premier Coal Curragh Bengalla (40%) 44
Slide 79: Resources - Performance
Resources - Performance For personal use only Growth Strategies EBIT ROC Opportunities Strategies A$m % Maximise export sales and optimise Long-term contracts ongoing 1 000 1,000 100 sales mix Price relativity maintained 900 90 Maximise higher value products 800 80 Cost reduction programmes Improve
Slide 80: Resources - Sales
Resources - Sales For personal use only Coal Sales Volumes by Mine (FY09) Australian Hard Coking Coal Prices Mine Domestic Export Export 400 Total (mtpa) Steaming Steaming Metallurgical 350 300 Curragh, QLD 3.3^ 6.5 9.8 250 200 Premier, WA 3.4 3.4 150 Bengalla*, NSW 0.2 1.8 2.1 100 50 Total 6.9 1.8
Slide 81: Hedging profile as at June 2009
Hedging profile as at 30 June 2009 For personal use only Curragh – Open Contracts Bengalla – Open Contracts Current US$ Average Current US$ Average Year end Year end sold forward A$ / US$ sold forward A$ / US$ 30 Jun 30 Jun (US$m) hedge rate (US$m) hedge rate 2010 350 0.78 2010 97 0.79 2011 285 0.79
Slide 82: Insurance
For personal use only Insurance 48
Slide 83: Geographical Presence
Geographical Presence For personal use only 3 1 UK 6 1 3 14 4 19 1 2 1 1 4 16 8 17 11 8 17 6 1 Lumley Insurance (Australia) 12 6 Lumley General New Zealand 10 3 2 WFI 86 1 2 OAMPS 34 Crombie Lockwood 17 49
Slide 84: Insurance - Performance
Insurance - Performance For personal use only Growth Strategies EBITA ROC Opportunities Strategies A$m % Portfolio review complete - remedial action underway 160 35 IT systems alignment and upgrade Underwriting Business Improvement Building technical capabilities 140 30 LGNZ margin improvement Austr
Slide 85: Insurance – Underwriting Performance
Insurance – Underwriting Performance For personal use only Key Performance Indicators FY09 Gross Written Premium by Class of Business Year ended 30 June (%) 2009 2008 %pt Total $1,358m Liability Gross Earned Loss Ratio 79.4 64.8 14.6 Personal $248 $284 Net Earned Loss Ratio 72.9 66.5 6.4 Reinsurance
Slide 86: Industrial & Safety Business Portfolio
Industrial & Safety For personal use only Business Portfolio Australia New Zealand “All your Safety Industrial workplace needs” Specialist Specialists (1) (1) Manufacturing and services 52
Slide 87: Industrial & Safety - Distribution Network
Industrial & Safety - Distribution Network For personal use only 240 locations (163 Australia, 77 New Zealand) Australia No No. 2 69 MRO, “All your workplace needs” 1 1 16 6 Electrical 14 6 12 7 9 5 9 4 Safety 42 2 1 54 22 Materials handling, lifting, rigging 4 2 17 1 6 4 Fasteners 16 4 1 8 Engineer
Slide 88: Industrial & Safety - Performance
Industrial & Safety - Performance For personal use only Growth Strategies Opportunities Strategies EBIT ROC g customers Increase sales to existing Maintained strong g DIFOT performance p and securityy of A$m % 140 18 supply to customers Strengthening range of leading and home brands at 16 120 compet
Slide 89: Chemicals & Fertilisers
Chemicals & Fertilisers For personal use only 55
Slide 90: Chemicals & Fertilisers - Locations
Chemicals & Fertilisers - Locations For personal use only ■ CSBP fertilisers Manufacturing plant 5 Import and distribution centres 5 Depots p 6 Regional Sales Representatives 27 Sales agents 135 ■ CSBP chemicals Manufacturing plants 10 ■ AV Manufacturing plants 2 ■ QNP (50%) Manufacturing f i plants
Slide 91: Chemicals & Fertilisers – Performance
Chemicals & Fertilisers – Performance For personal use only EBIT ROC Growth Strategies A$m % Opportunities Strategies 140 20 Sodium cyanide expansion (+8,000 tpa) 18 120 Maintain & Grow Businesses Improve ammonia plant production 16 performance 100 14 Optimise cost and capital Inventory and expense
Slide 92: Energy
For personal use only Energy 58
Slide 93: Energy - locations
Energy - locations For personal use only I d Industrial, i l medical di l and d specialty i l gases Air separation units (ALWA) Air separation units (Coregas) Hydrogen/acetylene plants (Coregas) 2 1 1 Industrial gas depots/branches (ALWA) 1 1 1 Industrial gas depots/branches (Coregas) 14 5 Acetylene
Slide 94: Energy - Performance
Energy - Performance For personal use only Growth Strategies EBIT ROC A$m % Strategies Segment 100 50 Industrial gas growth in: 90 • eastern states sales; and • oil and gas sector 80 40 Maximise LPG production 70 Improve – Existing Businesses LPG distribution: 60 30 • customer focus; and 50 • contro
Slide 95: Energy – Businesses
Energy – Businesses For personal use only Activities Activities distributor and marketer of LPG and LNG and Activities Production, distribution and marketing of gas appliances to a broad range of domestic, design, construction, operatation and industrial and medical gases on Australia’s east commerc
Slide 96: Other Businesses
Other Businesses For personal use only Gresham: 50% interest in Gresham Partners, an independent investment (A$m) 2008 2009 bank focused on financial advisory services, private equity investment and property investment funds. Wesfarmers also Share of associates profit/(loss): holds significant inves
Slide 97: Capital Management
Capital Management • Net Debt / Equity of 18.3% at 30 June 2009 For personal use only • Cash Interest Cover Ratio (rolling 12 months) to 30 June 2009 of 5.3 times • St Strong o g operating ope at g cas cash ge generation e at o ac across oss most ost d divisions vso s • Working capital improvement o
Slide 98: Cashflow
Cashflow For personal use only • Retail strategies delivered improvements in working capital during the year, partl offset b partly by higher working orking capital le levels els in CSBP $m % 3,500 140 3,000 120 2,500 100 2,000 80 1 500 1,500 60 1,000 40 500 20 0 0 2005 2006 2007 2008 2009 NPATDA* O
Slide 99: Outlook
Outlook For personal use only • Cautiously y optimistic p about the economic outlook in FY10 although g cognisant of a degree of ongoing fragility • Underlying retail trading conditions remain somewhat volatile and difficult to predict despite recent signs of growing consumer confidence – Impact of
Slide 100: Investor Relations Contact
Investor Relations Contact For personal use only Wesfarmer’s Investor Relations For further information on Wesfarmers including: Tanya Rybarczyk 61 8 9327 4323 trybarczyk@wesfarmers.com.au Annual reports Financial results announcements Presentations and webcasts Corporate policies Address Wesfarmers
Wesfarmers — JP Morgan Investment Conferences, New York and Edinburgh, October 2009 on 6ix