Wesfarmers Limited · ASX:WES
Wesfarmers — Investor Day (June 2019)
105 slides from Wesfarmers's investor day presentation, Jun 13, 2019
Slide 1: 2019 Strategy Briefing Day Presentation
13 June 2019 The Manager Company Announcements Office Australian Securities Exchange Dear Manager, 2019 STRATEGY BRIEFING DAY PRESENTATION Following is a presentation that is to be given today at a Strategy Briefing Day in Sydney which is scheduled to commence at 6:30am AWST / 8:30am AEST. The brief
Slide 2: Strategy Briefing Day
Strategy Briefing Day To be held on 13 June 2019
Slide 3: Agenda
Agenda Time Topic Presenter 8:00 – 8:30am Registration 8:30 – 9:30am Introduction & Group Overview Rob Scott & Anthony Gianotti 9:30 – 10:15am Bunnings Michael Schneider 10:15 – 11:00am Kmart Group Ian Bailey & Marina Joanou 11:00 – 11:20am Morning tea break 11:20am – 12:05pm Industrials David Baxby
Slide 4: Introduction & Group Overview
Introduction & Group Overview Rob Scott Managing Director, Wesfarmers Limited
Slide 5: Wesfarmers' primary objective
Wesfarmers’ primary objective Wesfarmers’ primary objective is to provide a satisfactory return to shareholders We believe it is only possible to achieve this over the long term by: Anticipating the needs of our Looking after our team Engaging fairly with our customers & delivering members & providi
Slide 6: FY2019 at Wesfarmers
FY2019 at Wesfarmers Portfolio ‒ Successful demerger of Coles management ‒ Divestments of Bengalla, Kmart Tyre & Auto (KTAS) and Quadrant Energy Leadership ‒ Divisional leadership: Kmart Group, Officeworks, Target succession ‒ Corporate Office: Corporate Affairs, Company Secretariat, Analytics ‒ Cap
Slide 7: Superior long-term financial performance
Superior long-term financial performance TSR Index Total Shareholder Return1 (November 1984 = 100) TSR since November 1984: 50,000 Wesfarmers: 19.4% (CAGR) All Ordinaries Accumulation Index: 10.8% (CAGR) 40,000 30,000 20,000 10,000 0 WES TSR (since listing) All Ordinaries Accumulation Index 1. As at
Slide 8: Building trust - aligned with shareholder value over the long term
Building trust - aligned with shareholder value over the long term Wesfarmers is committed to improving the ways we impact our community & the environment, to ensure we continue to create value in the future Key focus areas over the next 12 months include: • Continue making a meaningful difference i
Slide 9: Opportunities to deliver superior returns
Opportunities to deliver superior returns The Wesfarmers model provides flexibility to effectively allocate capital to: 1. Portfolio of well-positioned 2. Adjacent opportunities 3. Value-accretive transactions businesses Proposal to acquire Demerged Divested November 2018 December 2018 Divested Dive
Slide 10: Portfolio of well-positioned businesses
Portfolio of well-positioned businesses Rolling 12 months to EBIT Cap Emp RoC Share of EBIT 31 December 2018 ($m) ($m) (%) (%) Bunnings Australia & New Zealand 1,572 3,133 50.2 Kmart Group1 (continuing operations) 612 1,806 33.9 Officeworks 164 951 17.2 Industrials2 (continuing operations) 492 2,750
Slide 11: Continuing to invest for the long term
Continuing to invest for the long term 1 Portfolio of well-positioned businesses Our businesses are investing in: Customer offer Data & digital People ‒ Price investment to reinforce ‒ Ongoing investment in ‒ Implementing new EBAs value proposition e-commerce capabilities across many of our business
Slide 12: Continuing to invest for the long term: Adjacent opportunities
Continuing to invest for the long term 2 Adjacent opportunities Our businesses are expanding their addressable markets by developing new channels, capabilities, products & services Acquisition of Catch Group • Agreement to acquire Catch Group, a leading Australian online retailer for $230m • Establi
Slide 13: Continuing to invest for the long term: Value-accretive transactions
Continuing to invest for the long term 3 Value-accretive transactions Disciplined investment in opportunities which deliver long-term value by leveraging Wesfarmers’ unique capabilities Supports our primary objective of providing a satisfactory return to shareholders Disciplined focus on value-accre
Slide 14: Agreement to acquire Kidman Resources
Continuing to invest for the long term 3 Value-accretive transactions Disciplined investment in opportunities which deliver long-term value by leveraging Wesfarmers’ unique capabilities. Agreement to acquire Kidman Resources Transaction rationale • Global uptake of electric vehicles presents an attr
Slide 15: Looking forward
Looking forward • Near-term economic environment presents some challenges; consumers remain cautious & value-conscious • The Group’s divisions retain their leading positions in respective markets & are continuing to invest for long-term growth ‒ Disciplined investment & optimisation of the retail st
Slide 16: Group Balance Sheet & Cash Flow
Group Balance Sheet & Cash Flow Anthony Gianotti Chief Financial Officer, Wesfarmers Limited
Slide 17: Approach to delivering satisfactory returns
Approach to delivering satisfactory returns Long-term earnings growth & strong cash flow generation Maintain a strong balance sheet 1 Portfolio of well-positioned businesses Strong cash generation & working capital efficiency Optimise funding costs, sources & maturities 2 3 Value-accretive Adjacent
Slide 18: Cash flow generation
Cash flow generation Divisional EBIT & RoC1 (continuing operations) • Long-term earnings growth delivered through growth of existing businesses & portfolio $m % 3,000 40 management 2,500 30 2,000 • Portfolio of cash-generative businesses with 1,500 20 strong returns on capital 1,000 10 500 ‒ Divisio
Slide 19: Capital expenditure: investing for growth
Capital expenditure: investing for growth • Capital expenditure focused on strengthening core Divisional capital deployment1 (FY14 to FY18) businesses & driving long-term investment returns $m 3,000 ‒ Growth expenditure largely directed towards 2,500 Bunnings ANZ & Kmart over last five years 2,000 ‒
Slide 20: Strong balance sheet & debt management
Strong balance sheet & debt management • Strong balance sheet Finance costs & weighted average cost of debt – Access to diverse funding markets $m % – Limited debt maturities in any given year 400 6 – Strong & stable credit ratings » Moody’s: A3 (stable outlook) 4 » Standard & Poor’s: A- (stable out
Slide 21: Active & disciplined lease management
Active & disciplined lease management • Disciplined management of off-balance sheet Weighted average lease terms leases continues Includes discontinued operations – Risk management & operational flexibility through progressive reduction of fixed lease 4.8% 3.1% 2.2% 1.7% 0.8% tenure 12.3% 12.1% 8.0%
Slide 22: Impact of AASB16
Impact of AASB16 The transition to AASB16 will have no impact on underlying shareholder value, cash flows, debt covenants or the Group’s credit rating • New standard results in material increase in EBITDA ($1.0 to $1.4bn)1 & EBIT ($200 to $400m)1 • Small change in NPAT (dependent on average tenure o
Slide 23: Distributions: delivering shareholder returns
Distributions: delivering shareholder returns • Disciplined investment over the long term, with Shareholder distributions (declared) ongoing focus on shareholder returns $/share 3.50 – ~$16b of cash shareholder distributions & 3.00 3.00 capital returns paid between FY14 & FY19 2.50 1.00 2.23 2.23 (e
Slide 24: Q&A – Group Overview, Balance Sheet & Cash Flow
Q&A – Group Overview, Balance Sheet & Cash Flow Rob Scott Anthony Gianotti Managing Director, Wesfarmers Limited Chief Financial Officer, Wesfarmers Limited
Slide 25: Bunnings
Bunnings Michael Schneider Managing Director, Bunnings Group
Slide 26: Long-term value creation: consistent strategy for growth
Long-term value creation: consistent strategy for growth 14 Price. Range. Service. 1,600 12 Sales (LHS) 1,400 EBIT (RHS) 1,200 10 Sales1,2 ($b) 1,000 EBIT2 ($m) 8 800 6 600 4 400 2 200 0 0 1st Bunnings Warehouse opens Acquisition of BBC 1. Sales figures exclude sales from trade centres, frame & trus
Slide 27: Staying relevant to customers' changing lifestyle needs
Staying relevant to customers’ changing lifestyle needs Home Market Size Home & Lifestyle; Improvement & Outdoor Commercial Home Improvement Living $78b* Traditional Hardware 1980 2019 *$78 billion market relates to Australia only. New Zealand market size estimated at $NZ14 billion. Bunnings | 2019
Slide 28: Bunnings Australia & New Zealand
Bunnings Australia & New Zealand Bunnings | 2019 Strategy Briefing Day | 27
Slide 29: Better, stronger, safer
Better, stronger, safer Disciplined focus on driving a winning offer for our customers • strong in-store execution • continue to invest in the best team • doing what’s right for all stakeholders • deliver long term, sustainable results Bunnings | 2019 Strategy Briefing Day | 28
Slide 30: Driven by our team; for our customers & communities
Driven by our team; for our customers & communities Doing what's right builds trust Continue to engage & build a Focused on attracting & with our team, suppliers, team passionate about caring retaining the best talent at all customers & shareholders levels, all functions Bunnings | 2019 Strategy Bri
Slide 31: Even stronger offer: deeper & wider service experiences
Even stronger offer: deeper & wider service experiences • Redefinition of D.I.Y. & M.I.Y. • Brand relevant and relatable • Capture new customers & sales • Greater use of technology for speed, & enhanced experiences • Expansion of our installation & assembly services Bunnings | 2019 Strategy Briefing
Slide 32: Even stronger offer: current services
Even stronger offer: current services Referrals Assembly Installation Supply & Install Doors Door locks Hot water systems BBQs Split system AC Ceiling fans Benchtops Kitchen installation Exhaust & heat lamps Sheds Manual transfer switch Splashbacks TV antennas Customer doors Play equipment Tap & mix
Slide 33: Even stronger offer: easier & innovative DIY
Even stronger offer: easier & innovative DIY • Evolving DIY instore – in aisle demonstrations • Simplifying DIY • New & expanded categories: ‒ Connected homes ‒ Automotive ‒ Soft furnishings ‒ Pet care Bunnings | 2019 Strategy Briefing Day | 32
Slide 34: Even stronger offer: building the best store network
Even stronger offer: building the best store network • Over 16,400m2 total retail across 2 levels • 9,900m2 larger than old store • Over 400 car parks (250 more) Old Caringbah, NSW New Caringbah, NSW Bunnings | 2019 Strategy Briefing Day | 33
Slide 35: Even stronger offer: building the best store network
Even stronger offer: building the best store network • Over 4,000m2 total retail • Nursery size of 300m2 • 70 undercover car parks Bunnings | 2019 Strategy Briefing Day | 34
Slide 36: Accelerate trade growth: more relevant to trade
Accelerate trade growth: more relevant to trade • Investing & scaling our trade offer ‒ Expansion of trade ranges continues ‒ PowerPass enhancements ‒ Trade specialist roles relaunched; more than 500 dedicated trade-focused team members Bunnings | 2019 Strategy Briefing Day | 35
Slide 37: Accelerate trade growth: deeper relationships & better service
Accelerate trade growth: deeper relationships & better service • Service – supporting early morning tradies in-store • Load ‘n’ go – designated teams for the tradie • Apprentices link with TAFE, suppliers • Over 4,000 apprentices on PowerPass Bunnings | 2019 Strategy Briefing Day | 36
Slide 38: Accelerate trade growth: expos
Accelerate trade growth: expos Note: Video available at https://www.wesfarmers.com.au/strategy-videos Bunnings | 2019 Strategy Briefing Day | 37
Slide 39: Accelerate trade growth: new channels & brands
Accelerate trade growth: new channels & brands • Landscape offer • Irrigation • Expanded supply & install offers for builders • Business & organisations Timber yard & landscape Bunnings | 2019 Strategy Briefing Day | 38
Slide 40: Accelerate trade growth: category opportunities
Accelerate trade growth: category opportunities Low market share categories: • Kitchens • Bathrooms • Flooring • Window furnishings Bunnings | 2019 Strategy Briefing Day | 39
Slide 41: Accelerate trade growth: specialist studio
Accelerate trade growth: specialist studio • Specialist kitchen design studio format • Kitchens, laundries, wardrobes, studies, alfresco • High-end displays, consultants • Servicing consumer & trade customers Bunnings | 2019 Strategy Briefing Day | 40
Slide 42: Fuelled by data & digital: full omni-channel capabilities
Fuelled by data & digital: full omni-channel capabilities Roll-out schedule Phase 1: Tasmania Phase 2: Victoria Phase 3: Rest of Australia Click & Collect Online Delivery Collection Lockers Bunnings | 2019 Strategy Briefing Day | 41
Slide 43: Fuelled by data & digital: full omni-channel capabilities
Fuelled by data & digital: full omni-channel capabilities Bunnings | 2019 Strategy Briefing Day | 42
Slide 44: Fuelled by data & digital: stronger analytics capabilities
Fuelled by data & digital: stronger analytics capabilities • Investment in specialised skill sets to accelerate data & analytics capability • Four key use cases ‒ Safety – identifying contributing factors to safety incidents ‒ Range Localisation – tailoring ranges at stores to meet local conditions
Slide 45: Fuelled by data & digital: more informed, efficient & connected
Fuelled by data & digital: more informed, efficient & connected Bunnings | 2019 Strategy Briefing Day | 44
Slide 46: Sustainability priorities
Sustainability priorities Energy Waste • Solar installed at 31 Australian sites • Since 2009 Victorian batteries program has collected • Alice Springs solar & battery: >80% store energy >26,000kg needs • During past 2 years >900 tonnes of power tools & • LED lighting standard since 2015 & 37 stores
Slide 47: Outlook
Outlook • Significant runway in home, lifestyle & commercial market (AUS $78b & NZ $14b) • Good momentum & opportunities across both Australia & New Zealand – Focus on growing digital & physical presence – Strong pipeline & plans for 10 net new stores per annum • Investing for sustained growth – Mor
Slide 48: Q&A – Bunnings
Q&A – Bunnings Michael Schneider Justin Williams Managing Director, Bunnings Group Chief Financial Officer, Bunnings Group
Slide 49: Kmart Group
Kmart Group Ian Bailey Managing Director, Kmart Group
Slide 50: Historical performance
Historical performance • Revenue of $8.8b (FY18) $m Kmart Group Revenue 9,000 • Divisional performance increasingly driven by Kmart 6,000 − Attractive return on capital 3,000 − Strong cash generation 0 2014 2015 2016 2017 2018 R12* − Target contributing to divisional profitability & Kmart Target cas
Slide 51: Kmart Group overview
Kmart Group overview Differentiated, market-leading customer propositions World-class capabilities in design & sourcing; growing technology & fulfillment expertise Growing digital & technology Continued investment in supply Global design & sourcing capability capability chain & fulfillment infrastru
Slide 52: Trading environment
Trading environment – High levels of promotional activity across the industry Trading – Customers remain cautious & value conscious environment – Industry remains over-spaced, with uneconomic trading activity – Initiatives underway to address stock flow & productivity associated with Kmart significa
Slide 53: Addressable market broader than just department stores
Addressable market broader than just department stores Apparel Kids GM & Active Home & Living Australian market ~$35b Australian market ~$25b Australian market ~$24b FY18: FY18: FY18: c.10% c.7% c.11% FY17: 10.4% FY17: 11.6% Kmart & Target market share FY18 Total market Kmart Group | 2019 Strategy B
Slide 54: Kmart Group store network
Kmart Group store network 3 2 1 48 27 35 28 22 10 15 17 9 54 57 37 57 231 Kmart stores 46 24 16 184 Target large stores 5 110 Target small stores 5 1 6 * 3 Anko research & development stores in Seattle, USA Note: Store network count as at 31 May 2019 Kmart Group | 2019 Strategy Briefing Day | 53
Slide 55: 'Better Together' sustainability program
‘Better Together’ sustainability program An integrated sustainable development program for the Kmart Group with key focus areas being: Respect human rights Foster an inclusive culture Help our communities thrive Responsible purchasing Worker empowerment Diversity & inclusion Community partnerships T
Slide 56: 'Better Together' key initiatives
‘Better Together’ key initiatives • Sourcing materials sustainably – Launch of Kmart’s Better Cotton Initiative (BCI) marketing campaign – Commitment to achieving 100% more sustainable cotton by July 2020 in clothing, bedding & towel ranges • Responsible purchasing practices – Active membership with
Slide 57: Digital capability
Digital capability Continued progress on omni-channel offer Invest in • Expansion of click & collect technology • Rapid growth in online sales • Channel remains profitable Kmart & Data Target online analytics platforms Further opportunities to strengthen Digital customer offer & simplify ways of doi
Slide 58: Acquisition of Catch Group
Acquisition of Catch Group • An exciting opportunity for Wesfarmers & the Kmart Group • Acquisition of Catch Group provides: – High calibre skills & capabilities in e-commerce & fulfillment – Leading technology platform – Growing marketplace • Apply divisional autonomy model to retain entrepreneuria
Slide 59: Kmart
Kmart Ian Bailey Managing Director, Kmart
Slide 60: Kmart
Kmart Kmart | 2019 Strategy Briefing Day | 59
Slide 61: Kmart: Strategic Pillar 1
Kmart: Strategic Pillar 1 • Building an operating model that effectively sells over 1 billion items – High availability – Fast moving – Great execution • Continued development of the online offer whilst leveraging the store network infrastructure – Seamless online & in-store experience • Productivit
Slide 62: Kmart: Strategic Pillar 2
Kmart: Strategic Pillar 2 • Continue to proactively own lowest price – Reinforce position in competitive market • Cost pressures including a depreciating Australian dollar – Cost out initiatives in place to reduce impact • Focus on providing desirable on-trend products at low prices – Elevating desi
Slide 63: Continued price leadership
Continued price leadership • Respondents asked to select which brands agree to the statement of having the ‘Lowest Prices’ • Kmart maintains clear price leadership position ‒ At least 3 in 5 shoppers report Kmart has the ‘Lowest Prices’ Lowest prices Percentage of shoppers1 who voted on the brand wi
Slide 64: Kmart Group Asia Sourcing
Kmart Group Asia Sourcing • Kmart Group is a globally significant buyer In 5 years, we will – US $2.7b products sourced be famous for….. – In many factories, Kmart Group is the largest buyer in the southern hemisphere • Product design & sourcing represents a key competitive advantage for the Kmart G
Slide 65: Research & development initiative
Research & development initiative • Retail research & development initiative to accelerate retail technology development & enable faster evolution of future digitally-enabled operating models • Testing new formats, technologies & operating methods • Customer value proposition is resonating strongly
Slide 66: Target
Target Marina Joanou Managing Director, Target
Slide 67: Accelerate business transformation
Accelerate business transformation • Weaker trading momentum in 2HFY19 highlights challenged business economics • Stronger repositioning of customer proposition required: – Inspire customers to live better – Great style & quality at an affordable price – Ease of customer journey – Accelerated digita
Slide 68: Elevate quality & style
Elevate quality & style • More focused offer progressively re-weighted towards apparel, soft home & toys • Stronger elevation of quality & style to provide a clearly differentiated offer – Supported by end to end operating model alignment • Increased focus on design capabilities & digital customer c
Slide 69: Optimise store network & expand online
Optimise store network & expand online • Implement store network plan, focused on creating value for Kmart Group • Focus on leveraging network to support increased customer convenience across all channels – Click & collect enhancement – Online fulfilment & leverage DC automation • Enhanced user digi
Slide 70: Kmart Group
Kmart Group Ian Bailey Managing Director, Kmart Group
Slide 71: Outlook
Outlook • Continue to drive growth in Kmart • A long-term focus on strong returns • Accelerate digital capability to drive sales & reduce costs – Building new technology & data analytics capabilities to drive business performance – Develop retail technology innovation in Anko – Leverage Catch Group
Slide 72: Q&A – Kmart Group
Q&A – Kmart Group Ian Bailey Marina Joanou Managing Director, Kmart Group Managing Director, Target
Slide 73: Industrials
Industrials David Baxby Managing Director, Industrials
Slide 74: Our safety record: Total Recordable Injury Frequency Rate
Our safety record: Total Recordable Injury Frequency Rate (TRIFR, R12) WesCEF WIS 14.0 14.0 12.0 12.0 10.0 10.0 8.0 8.0 6.0 6.0 4.0 4.0 2.0 2.0 0.0 0.0 May-19 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 May-19 Jun-18 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Industrials | 2019 Strategy Briefing Day | 73
Slide 75: Divisional overview: WESCEF
Divisional overview: WESCEF Chemicals Energy Fertilisers Production, sales & distribution Production, sales & distribution Import, production, sales & Description of ammonia, AN1, sodium of LPG & LNG, retailer of distribution of fertilisers & cyanide & specialty products natural gas & electricity Ag
Slide 76: Historical EBIT and ROC: WesCEF
Historical EBIT and ROC: WesCEF Individual businesses are subject to cyclical earnings. Capital invested in medium term projects & delivered financial returns through the cycle. $m % 450 AN3 investment period 30.0 400 25.0 350 300 20.0 250 15.0 200 150 10.0 100 5.0 50 - - 1 2 FY07 FY08 FY09 FY10 FY1
Slide 77: Business update & current priorities: Chemicals
Business update & current priorities: Chemicals Business update • Longer term AN commitments secured in exchange for discounts • Record sodium cyanide production • Ongoing plant & operational efficiencies Current priorities • Optimise short term AN sales mix & secure medium- term commitments • Consi
Slide 78: Leveraging existing infrastructure
Leveraging existing infrastructure kt Sodium Cyanide production 100 80 60 40 20 0 Industrials | 2019 Strategy Briefing Day | 77
Slide 79: Business update & current priorities: Energy
Business update & current priorities: Energy Business update • Strong performance of production facility • Scale & managed cost base enabling further discounts for NG retail customers • Customer satisfaction recognised with Canstar award for third year running Current priorities • Continued focus on
Slide 80: Business update & current priorities: Fertilisers
Business update & current priorities: Fertilisers Business update • CSBP services & product quality providing differentiation in a competitive market • Cautious grower sentiment despite a strong 2018 harvest given late opening rains • CSBP is well positioned for a potentially strong season Current p
Slide 81: Utilising automation, data & digital: WesCEF
Utilising automation, data & digital: WesCEF WesCEF is pursuing a range of initiatives to enhance the use of technology & data in its businesses Initiatives recently implemented • Automated AN bagging plant • Carrier Arrival & Despatch System (CADS) • Ammonia plant advanced process control • Increas
Slide 82: Divisional overview: WIS
Divisional overview: WIS Blackwoods WWG Coregas Greencap Distributor of tools, Manufacturer & Industrial, medical & Risk management & Description safety gear, workwear & supplier of workwear specialty gas supplier compliance service industrial supplies solutions provider Competitive • ~5% market sha
Slide 83: Historical EBIT and ROC: WIS
Historical EBIT and ROC: WIS WIS – a portfolio of businesses in various stages of turnaround $m % 200 18 180 16 160 14 140 12 120 10 100 8 80 6 60 40 4 20 2 - 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 WIS EBIT WIS ROC Industrials | 2019 Strategy Briefing Day | 82
Slide 84: Business update & current priorities: Blackwoods
Business update & current priorities: Blackwoods Business update • Customer service improvements achieved • New web platform launched in May 2019 - Blackwoods.com.au • Own brand refresh complete • DC automation being implemented Current priorities • Implementation of new ERP system • Investment in d
Slide 85: Blackwoods: automation – Scoresby and Greystanes
Blackwoods: automation – Scoresby and Greystanes Note: Video available at https://www.wesfarmers.com.au/strategy-videos Industrials | 2019 Strategy Briefing Day | 84
Slide 86: Business update & current priorities: WIS
Business update & current priorities: WIS • Digital transformation & improve operational • Successful launch of Healthcare efficiencies • Building capabilities in specialty gases • Investing in product customisation & brand • Binding agreement to acquire CM31 platform • DecipherGreen – remote sensin
Slide 87: Sustainability update
Sustainability update Indigenous employment • Indigenous employees represent 2.2% of headcount • National training award for Creating Opportunities Spotlight initiative • Coregas partnership with The Cryogenics Group Gender balance • Women represent 30% of Industrial leaders1 • Focus on balance & in
Slide 88: Outlook
Outlook Chemicals, Energy & Fertilisers • Production & demand for products expected to remain robust • AN to continue to benefit from ongoing disruption at competing Burrup plant but medium-term earnings will be affected by an oversupply of EGAN in WA • AN margin to be impacted in FY20 as some key c
Slide 89: Q&A – Industrials
Q&A – Industrials David Baxby Ross Martelli Managing Director, Industrials General Manager, CSBP Chemicals
Slide 90: Officeworks
Officeworks Sarah Hunter Managing Director, Officeworks
Slide 91: Historical performance
Historical performance Officeworks | 2019 Strategy Briefing Day | 90
Slide 92: Our customer landscape is changing
Our customer landscape is changing Customers expect… Flexibility to Solutions and Greater Increased focus A better offer shop whenever services to help convenience and on doing well by than our and however solve problems immediacy doing good competitors across every channel Officeworks | 2019 Strate
Slide 93: Current addressable market
Current addressable market Previous Current Extended Addressable market size Addressable market size Addressable market size ~$6bn1 ~$20bn2 ~$41bn3 22% 9% Technology, Print & Copy, Education, Business, Connected Core Office Supplies + Furniture, Kitchen, Cleaning & Packaging + Customer, Services, Cr
Slide 94: We are refreshing our strategy to deliver long-term growth
We are refreshing our strategy to deliver long-term growth Our Customer Operational Connecting Growing Our Team Experience Excellence with our Business Communities Officeworks | 2019 Strategy Briefing Day | 93
Slide 95: Our team
Our team • Enhanced focus on safety, health & wellbeing - Continued focus on safety - Develop a broader health & wellbeing strategy • Implement our new four year Store Operations Enterprise Agreement - Provide stability & certainty for our team members & Officeworks • Develop our credentials as an e
Slide 96: Customer experience
Customer experience • Invest in understanding our customers better - New GM Customer Experience role & building the capability of insights team - Enhance our data analytics capability • Use our customer knowledge to evolve our every- channel offer, including: - an even better Click & Collect offer -
Slide 97: Operational excellence
Operational excellence • Modernise our supply chain by: - Increasing the capacity & capability of our Customer Fulfilment Centres - Upgrading our supply chain network to support our customers’ every channel needs • Invest in technology to simplify activities & WA unlock growth Consolidated DC due FY
Slide 98: Connecting with our communities
Connecting with our communities • Connect with our communities by: - investing in our national partnerships (e.g. Restoring Australia, The Australian Literacy & Numeracy Foundation, The Smith Family) - building closer partnerships with local community groups • Increase our focus on sustainable busin
Slide 99: Growing our business (core growth)
Growing our business (core growth) • Improve the business we have today - Maintain the relevance of our stores by investing in our network through a Store Renewal Program - Bring products & services to life & implementing learnings from Mentone XXL (e.g. Art & craft and learning & development) - Cre
Slide 100: Growing our business (core growth)
Growing our business (core growth) Note: Video available at https://www.wesfarmers.com.au/strategy-videos Officeworks | 2019 Strategy Briefing Day | 99
Slide 101: Growing our business (new growth)
Growing our business (new growth) • Pursue new growth opportunities, such as: - Services (e.g. Geeks2U) - Businesses (e.g. Print, Copy & Create) - Education (e.g. Early learning) • Grow our store fleet - continue to expand our store fleet in a disciplined way to support our every channel strategy Of
Slide 102: Outlook
Outlook • Variable trading conditions expected to continue & competitive pressure expected to remain strong • New Store Operations Enterprise Agreement to be implemented, providing stability & certainty for our team • Implement our refreshed strategy with a continued focus on execution Officeworks |
Slide 103: Q&A – Officeworks
Q&A – Officeworks Sarah Hunter Michael Howard Managing Director, Officeworks Chief Financial Officer, Officeworks
Slide 104: Close
Close Rob Scott Managing Director, Wesfarmers Limited
Slide 105: Wesfarmers
e Wesfarmers