Slide 1: Investor Discussion Pack
= — Se F—S SS —t——™— = — = — rrr = — ee CO — eS — rr = — rr — r= hrm ——rr™C === — — Umer SS _— = eS — — lr — — — rr —rr—C === — -_ == — == — re = — =~ = = eS — SS pore — rr = — — — —rCS™C = = — — r= ——™— Es — == — = — = _— = = — = = — = —rrr——=—E=”' — = = rr FS rr LU a ee EE OHS ee ‘ OG Fe ™ ———™—=—
Slide 2: Index
Index ole le ieee an Ta ue oy ic (Se STS TST STAT ST SMT MeNTeNenie! a isi aS 2 ou: oo o _. ie _ 2 co _ Operating Divisions 30 Hardware 31 Energy 34 Insurance 39 Industrial and Safety 43 Chemicals and Fertilisers 47 50 Other Businesses International Financial Reporting Standards (“IFRS”) 52 eel
Slide 3: Be ee
Be ee Oe —rr—rrrrr™rL—™—™rrrrrr—UC—“©————”"CSC OO rrrrr—™—Crrrrr—r—rT—C F™——~—— SO rr—r——E""————”— ERENT -—rt‘eOUC~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~”—C”UC”UC"U”"“‘t‘™‘"R‘"R‘"RN"‘EEEt=t~S*™SCOCOCCOCOCC:éOCiC‘C(CNC*C;:;w = =. i i... |
Slide 4: Our Objective and Strategies
Our Objective: to provide a satisfactory return to shareholders Our Strategies: 4 Improve performance of existing businesses Expand existing businesses - “logical incrementalism” Portfolio management Ensure the company’s sustainability
Slide 5: Our aim to provide a satisfactory return to shareholders
Our aim to provide a satisfactory return to shareholders by: * satisfying the needs of customers through the provision of goods and services on a competitive and professional basis; ® providing a safe and fulfilling working environment for employees, rewarding good performance and providing opportun
Slide 6: Operating Results
Operating Results Operating revenue * sm 7,706 8,190 6.3 * Net profit before interest and tax * Sm 882 949 7.6 t Net profit after tax before goodwill amortisation” $m 655 709 8.2 t Net profit after tax and goodwill amortisation * $m 569 618 8.6 t Dividends $m 527 680 29.0 t Financial Position Total
Slide 7: Operating divisions overview
iW oe IM: 30 i = Retailing of building materials and home and 4,068 418 > Hardware : garden improvement products Mining of thermal and coking coal; production, marketing and distribution of LPG; manufacture and marketing of 1,187 319 industrial gasses; and power generation Ehersy , Supplier and dist
Slide 8: EPS growth and share price
EPS (cents) 320 4 280 4 240 4 200 long run growth in earnings per share and strong share price increase... 86 87 88 89 90 91 92 93 94 95 96 97 98 99 OO O01 O02 03 04 O05 Share Price(A$) + 40 + 35 + 30 PS Wen Girrah EPS "2 Landmark EPS —— Wesfarmers Share Price 180,000 160,000 + 140,000 4 ..resulting
Slide 9: Cashflow and dividends growth
th ili Z) im hi ona a ii 320 ~ Cents strong growth in cashflows and dividends... 95 96 97 98 99 00 01 02 03 04 05 Dividend per share © Cashflow per share 305 % ..from consistent above market returns on 20 | shareholders’ funds 154 10 + ‘Ei 04 96 97 98 99 00 01 02 03 04 05 95 @ Return on Shareholders
Slide 10: ee Br ee
ee Br ee C—rrr—U—U.—~———'—+-._=—mss—s—>s—s—sé—sF—seseseseese OO rr—m—Crrrrrr—rr——C——————. ee SS rrrr™T——”——r”—r—™———( lL SS = = . 7": - = : . -—rt‘eOUC~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~”—C”UC”UC"U”"“‘t‘™‘"R‘"R‘"RN"‘EEEt=t~S*™SCOCOCCOCOCC:éOCiC‘C(CNC*C;:;w = =. i i... |
Slide 11: Improve performance of existing businesses
improve performance of existing businesses to run our businesses according to “best practice” principles Expand existing businesses - “logical incrementalism” to expand existing businesses as opportunities allow Portfolio management to manage our portfolio and balance sheet actively in order to enha
Slide 12: Integrated shareholder-focused systems
‘Integrate tegra e reho tems Achievement of Wesfarmers objective of a satisfactory return to shareholders is supported by an integrated shareholder-focussed systems yy op LG Wi Ws y Le VA y ion P. Waite ae ae yy 7), Ms Wy iE by Sha MOM Ly Wie PII ge di iy y; y OM Me Integrated te La is VL LOA y VE U
Slide 13: Performance targets
Perf rformance Targets vn ~~) &) Targ Divisional Performance ce orman aE Ce ey wu) YG Wy) TYOleCy) 2 7 My a Evaluati Me My io or in a 1G ey Investon Discussion Mey, Mn LE We eee Aas ae Wis, GE A Ye Ga yy yy Lo Ly ay le We 7 1C Ws Ae untae aii, eg ek LLL LL a LEE EEE
Slide 14: Group performance targets: Return on Shareholders' Equity
up Performance Tar Return on Shareholders Equity vestor Discussion’ . ret - ROE, _ a | ic a A ea exceeding group performance targets o . ae oe _ - * Excluding Girrah 2003* «= Target 2002 # Excluding Landmark 2004# 2005
Slide 15: Divisional performance: Return on Capital Employed
SQM LEG MG ope N LOL eg MEE GEE —rrr—~—~—— : . 2-2. OC SL == ——™ LLL DIVISIONAL PERFORMANCE Str = r—— ee S—C 2S SC _ _ _ _ hon i a __. — SS ss [ss 2 ~~ oe Return on Z i ae ey ce xy ee Le er . ree Le Me) ed ae Le —* Capital ee Ge Oe Een te NC Aaa Teta ST STAN BE I i CE ea wis EEE EEE VE Employed ee e
Slide 16: Return on Capital Employed by division
HME iti ini niin ii DIVISIONAL PERFORMANCE Return on Capital Employed ROC, iG 2006 Targets: ROC ‘A Min = 10% Ai ROC, sat = 20% fe 2004 2005 2004 2005 2004 2005 2004 2005 2004 2005 Hardware Energy Industrial & Insurance Chemicals & Safety Fertilisers | | 16]
Slide 17: Record of growth through capital expenditure and acquisitions
Wesfarmers has a strong record of Total: A$909m Energy $407m growth through capital expenditure Other $4m Insurance and value enhancing acquisitions... : $32m ..through the concept of “logical Industrial & 2 . Safet) incrementalism” the company has S3im. successfully pursued profitable growth Chemic
Slide 18: Cash Interest Cover
2001 2002 2003 2004 2005 Cash Interest Cover (EBITDA / Net Interest) 30.9 17.6 17.8 10.9 12.7 i i ° —— a 04 T T T T 2001 2002 2003 2004 2005
Slide 19: Sustainability
Slide 20: ton Discussion’
ton Discussion’
Slide 21: Financial Focus
Financial Focus Strict Disciplines Building Growth-Enabling Competencies Culture
Slide 22: eS SEE oe
ee CO eS SEE oe a —,rr—“—O—OCO—*—*t*ENCNC ES~—rw—w—~‘“‘“(‘(‘OROCOUOCWCWOWwOOtitiiCCdC:C |: —rr—“‘i‘“ié‘iCOCOC;'—h[UCOCOO ORT —UrUC~Cr™C—C——“—=*‘RRUECCiCzstiONisCNRCOCiON:i‘CiC —_—- FF e-=s=—=—<COztC tri siti —rs—= =. re = —rT_,_—C _— —- ~~ = =—r——OEURWOW.WO.OOWODOWOOUCtiésSS% = rt—“‘“‘COCtCsSsSCsCiC
Slide 23: Group results summary
Operating Revenue* 7,706.6 8,190.4 6.3 Net Profit after tax (before goodwill amortisation)* 654.7 708.7 8.2 Goodwill amortisation (85.5) (90.4) 5.7 Net Profit after tax {after goodwill amortisation)* 569.2 618.3 8.6 Net Profit on Sale of Landmark 304.0 - Am Reported Net Profit after tax (after goodw
Slide 24: Dividend, EPS and cashflow per share
cents per share 350 Cashflow attributed 300 to sale of Landmark a A 50 Li yy yy : 0 2001 2002 2003 2004 2005 i Dividend per share WEPS (before goodwill amortisation) '@ Cashflow per share* * Excluding sale of Girrah (2003) and sale of Landmark (2004) Ce i Ca i Oo a yy ie a
Slide 25: Hardware Financial Performance
ig gy ‘Har Highlights | Financial Performance - Revenue : EBITDA 436.1 464.7 6.6 Depreciation (51.3) (46.8) {8.8) EBITA 384.8 417.9 8.6 Amortisation (50.1) (52.3) 4.4 EBIT 334.7
Slide 26: Energy Financial Performance and Curragh Hedging Profile
Financial Performance — ($m) Revenue EBITDA Depreciation {78.8) (75.9) {3.7) EBITA 240.2 319.3 32.9 Amortisation (0.8) (1.1) 37.5 EBIT Curragh Hedging Profile - at 30 September 2005 7 0.7020 2006 tical y 2007 71% 0.6539 2008 50% 0.6893 2009 30% 0.7184 2010 10% 0.7161 * Calculated using known contrac
Slide 27: Industrial & Safety Financial Performance
al& S Financial Performance (Sm) Revenue EBITDA 124.4 125.0 0.5 Depreciation (12.4) (15.0) 21.0 EBITA 112.0 110.0 (1.8) Amortisation (25.2) (26.1) 3.6 EBIT 86.8 83.9 (3.3) ‘Outlook ler
Slide 28: Insurance Financial Performance
Financial Performance Gross Written Premium Net Earned Premium . Net Claims (295.8) (412.1) Net Commission and Expenses (142.5) (189.6) 33.1 Underwriting Result 69.8 98.7 41.4 Investment Income on TR 15.4 23.1 50.0 Insurance Margin 85.2 121.8 43.0 Investment Income on SHF 10.4 11.9 14.4 Non-Insuranc
Slide 29: Chemicals and Fertilisers Financial Performance
($m) Revenue: EBITDA Depreciation EBITA Amortisation EBIT Chemicals Fertilisers (37.7) 85.6 (0.2) 85.4
Slide 30: Operating Divisions
2222 eee eee aa ee OO ——rrrrrr™™rrrrrL—rr———r—C E——— - i . . |... — -—rt‘eOUC~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~—~”—C”UC”UC"U”"“‘t‘™‘"R‘"R‘"RN"‘EEEt=t~S*™SCOCOCCOCOCC:éOCiC‘C(CNC*C;:;w = =. i i... |
Slide 31: Hardware
a a yi EST PRICES. BEST SERVICE.
Slide 32: Hardware Quick Facts
QUICK FACTS > 1 34 warehouse stores 80 traditional stores 45 ’ 000 product lines 22,000 employees CONTRIBUTION TO GROUP EBITA WAREHOUSES AND STORES | No. Bi Warehouses 134 WE Traditional stores 80 @ WA Salvage stores | 18
Slide 33: Hardware revenue and EBITA
Revenue 1,541.7 3,066.3 EBITA 132.0 291.8 Amortisation - (46.6) EBIT 132.0 245.2 2001 3,474.5 342.8 (50.1) 292.7 2002 ‘ont EBA 3,845.7 384.8 (50.1) 334.7 2003 2004 Gen ROCA 2005
Slide 34: Energy
Wn ne 0) AAT AE ANA | [34
Slide 35: Energy Quick Facts and businesses
Coal | 3 coal mines - _ Poa. locations / 123 Simpa production . 264 ,000 » gas customers 20. customers | 14 remote power stations 634 employee Al 5 Gul h ‘generation “ excluding Bengalla CONTRIBUTION TO GROUP EBITA BUSINESSES Coal @ Premier Coal ® Curragh @ Rengalla Gas and power @ Kleenheat Gas W)
Slide 36: Energy EBITA and ROCA
F 2001 2002 2003* 2004 2005 al EBITA ~@—~ ROCA * Excludes Girrah A$80.5m in 2003 Revenue 978.1 963.5 1,083.8 1,008.6 1,186.7 5.0% EBITA 190.4 236.9 340.3 240.2 319.3 13.8% Amortisation (0.3) (0.4) (0.7) (0.8) (1.1) nm EBIT 190.1 236.5 339.6 239.4 318.2 13.7%
Slide 37: Coal mines and Curragh export coking coal sales
Mine (mtpa) Curragh, QLD 2.5 4.6 7.1 Premier, WA 3.3 3.3 Bengalla*, NSW 0.4 1.8 2.2 “Wesfarmers 40% share Mth Curragh Historic and Forecast Export Coking Coal Sales
Slide 38: Wesfarmers Energy - Gas & Power
Slide 39: Insurance
Ne
Slide 40: Insurance Quick Facts
nsurance _ a QUICK FACTS J) 1 1,463 employces 105 branches a a - i _ a CONTRIBUTION TO GROUP EBITA - BUSINESSES @ Wesfarmers Federation Insurance 83 i@ Lumley 22 _- ma Investon Discussion
Slide 41: Insurance results and ROCA
Gross Written Premium 170.3 200.6 Net Earned Premium 138.3 156.8 Underwriting Result 10.8 12.7 EBITA 20.4 19.5 Amortisation - - EBIT 20.4 19.5 2001 2002 BITA 787.3 508.1 69.8 95.8 (7.5) 88.3 2003 2004 2005 @—- ROCA 1,019.9 700.4 98.7 138.8 (10.6) 128.2 56.4% 50.0% 73.% 61.5% am 58.3%
Slide 42: Commercial insurance underwriting performance and KPIs
tw Commercial ‘ 100 5 focused on strong underwriting performance Crop Motor 95 4 90 + Engineering 8% 854 80 4 Commercial 18% 754 70 5 65 4 60 + QBE Promina 1AG wiD QBE Promina [AG = WiD Liability Personal 2004 2005 17% 18% 12 months ending 30 June. QBE and Promina adjusted for December year end. “Ke
Slide 43: Industrial and Safety
Li Atkins BAKERS COSTE TIR te CNOITTMEAS, Bilackwoods 4 Packaging House © PAYKELS tor your ongineoring supplies Pr@tector_) Safety Suppiy TCHS ETES A tior Mullings Fasteners TUE BUS TEATS GEECIA!
Slide 44: Industrial & Safety - Network
‘Industrial & Safety - Network a 2 a (\ | 7 co. 4 i _ TG | co a (8 . : oe . ee / 7 ~—Oe oe oe _ i CONTRIBUTION TO GROUP EBITA BUSINESS co 8 i. a y Industrial Products 116 eB Protector Alsafe 55 . 2 a H Protector & NZ Safety 46 DM Blackwoods Paykels (NZ) 27 [Wj Packaging House il co
Slide 45: Fulfillment, trading channels and customers
Fulfillment Trading Channels / Diverse Engine Streams Communication Customers —=—=—=—~=—~—v—_ove ——_—vvvrve Blackweods , ; 1 Le Le i i istribution Pragectorg ty Centres _ BAKERS | | Cl Mullings Fasteners, 1 | 1 ey 4 i __ Logistics iii i Ind 7 iff i i! i i} i oo L i : i i, oy i 1 j Procurement y, at
Slide 46: Industrial & Safety revenue and EBITA
Revenue EBITA Amortisation EBIT * represents 1,055.4 1,112.0 2002 ‘inn EB ITA, 1,150.6 112.0 (25.3) 86.8 2003 2004 2005 ~@— ROCA 1,171.5 110.0 (26.1) 83.9
Slide 47: Chemicals & Fertilisers
ial a Al ch hemicals & Fertilis -_ jal oe co oo. Ls NTE SS) 2 ae y rion neilanalin te aE a ne oo) i Lo K<<-zA<<A iC ae oo oo A Vaal @ ii anc CT a / - 7 is ne CO LL |_|) ISL. ln nn 7 Le OO Lp) <0 ae a Le i eee: i 1 De, ae i oe ae. Ww ZA Le ee J Hy Se oe NG Hi
Slide 48: Chemicals & Fertilisers - Locations
Chemicals & Fertilisers - Locations su! y QUICK FACTS” f | _ a el | : oe : “major ile mM 7 ' | __ distributors servicing Over 5 900 oe = . al . a oo 16 operational _ manufacturing plants / a oo BUSINESSES CONTRIBUTION TO GROUP EBITA @ CSBP fertilisers Manufacturing plant 5 Import and distribution ce
Slide 49: Chemicals & Fertilisers EBITA and ROCA
Is & Fertil EBITA AgSm 100 2001 2002 2003 2004 2005 ‘on: EBS ATA, @— ROCA (ASm) Revenue 438.1 463.9 473.6 518.5 588.7 7.7% EBITA 52.9 73.5 78.9 85.6 89.3 14.0% Amortisation (0.3) (0.3) (0.3) (0.3) (0.3) nm EBIT 52.6 73.3 78.6 85.4 89.1 14.1%
Slide 50: Other Businesses
GRESHAM INVESTMENT ROUSE: WESPINE Australian Railroad Group (50%): 50:50 joint venture between Wesfarmers and international rail operator Genesee & Wyoming Inc (GWI) of the United States. ARG comprises two operating businesses; Rail Operations providing haulage and logistics rail services in Western
Slide 51: Current Investment Portfolio
vam P Current Investment Portfolio
Slide 52: International Financial Reporting Standards
ee “22 =. Se es Ts = rrrrr—r——“—r———<“ i etter elrlc §®rmrrSs—i<(“i<i‘i‘i‘i‘iOisOsSSSs=ststsSsSsaC(isw;”*si<“i‘i‘“‘“O:iésC™CsésSsSsSsSsSsSsS*sCiCSzSSCS pe een rn ee RS SRO ONaEES ONSEN SENRLNNCS ol rr—“_—O—O—O—O—O—O—O—CSC—C—CSCSCSCW WW!) —==_ s€ermlmrmrm—~—r—~””—C—CPiC —h—rr——“—aeOONONCOidCidwCésCs—
Slide 53: AGAAP to IFRS reconciliation
ted TrOWwIng OF i v | wu d Sharehold duly 2005 AGAAP Shareholders’ Equity 3,081.0 Derecognition of Employee Share Loan (215.3) Impairment of assets including goodwill (17.3) Write-back of goodwill amortisation 90.4 Tax effect of earnings from associates Tax effect of fair value adjustments on acquis
Slide 54: — C = © _ _ _. rrr —rrr— —rr— oer ell! Keltn hes
— C = © _ _ _. rrr —rrr— —rr— oer ell! Keltn hes ee ——rrr—~—™—D TA TTI ea leliateeet — rrr : su holt as A oan ere) tations and webcasts. We ieee LL —rt~t~™—~—‘Os——r—”————C it ourlwe i sit our' website sit T_T. a rrrtw™—™——— _-rrrrtéiaeONC—V Gee ag ee a Hale sth aa allt ited a lest GN oe oT essel - .