2017 Half-year Results Supplementary Information

Transcription

1 207 Half-year Results Supplementary Information To be read in conjunction with the 207 Half-year Results Briefing Presentation to be held on Wednesday, 5 February 207

2 Presentation outline Item Page Group Balance Sheet 3 Coles 6 Home Improvement 0 Department Stores 3 - Target 4 - Kmart 8 Officeworks 22 Industrials Half-year results 2

3 Group Balance Sheet

4 Group management balance sheet overview ($m) H6 FY6 H7 Commentary Inventories 6,580 6,260 6,852 Receivables & prepayments,80,950 2,083 Trade & other payables (7,063) (6,492) (7,624) Detailed working capital discussion provided on slide 5 Other Net working capital,847 2,29,89 Property, plant & equipment 0,207 9,62 9,436 Decrease since H6 due to Curragh impairment; decrease since FY6 due to property divestments by Bunnings & Coles Intangibles 9,298 9,073 8,998 Decrease since H6 due to impairment of Target goodwill partially offset by goodwill on acquisition of Homebase Other assets Provisions & other liabilities (3,4) (3,770) (3,665) Increase since H6 mainly due to Homebase acquisition; decrease since FY6 due to seasonally lower employee provisions & release of Stanwell litigation provision Total capital employed 28,922 27,663 27,457 Net debt excluding financial (4,470) (5,727) (4,492) Decrease since FY6 due to repayment of $500m domestic services debt 2 medium term notes & a reduction in seasonal facilities Net tax balances 50, Increase since H6 due to Homebase acquisition; decrease since FY6 due to a downward revaluation of DTA for BUKI following expected reductions in UK corporate tax rate Total net assets 24,962 22,949 23,767 The above balances reflect the management balance sheet, which is based on different classifications & groupings to the balance sheet in the 207 Half-year Report. 2 Net debt including cross currency swap assets / liabilities & excluding financing of credit book relating to the Coles credit card. 207 Half-year results 4

5 Balance sheet working capital ($m) H6 FY6 H7 Commentary 2 Inventories 6,580 6,260 6,852 Acquisition of Homebase, partially offset by reduction in inventory at Target Receivables & prepayments,80,950 2,083 Higher average selling prices in Resources Acquisition of Homebase Lower in WesCEF due to conversion to PVC import model Trade & other payables (7,063) (6,492) (7,624) Acquisition of Homebase Increased inventory purchases in Coles to improve availability Other Net working capital,847 2,29,89 The above table refers to balance sheet movements only. Working capital movements as shown on slide 0 of the 207 Half-year Briefing Presentation exclude non-cash movements which are included in the table above. 2 Commentary refers to movements between H6 &H7. Movements between FY6 and H7 largely reflect seasonal variations. 207 Half-year results 5

6 Coles

7 Coles network as at 3 December Selling Area Supermarkets (sqm),804,073 Liquor (sqm) ex hotels 20, Supermarkets 872 Liquor stores 89 Hotels 695 Convenience Coles 207 Half-year results 7

8 Store network movements Supermarkets Open at 30 June 206 Opened Closed Re-branded Open at 3 Dec 206 Coles (5) 790 Bi-Lo Total Supermarkets (5) 79 Liquor st Choice Vintage Cellars Liquorland 687 (6) Hotels Total Liquor (6) - 96 Convenience (2) Coles 207 Half-year results 8

9 Revenue reconciliation Half-year ended 3 Dec ($m) Food & Liquor Convenience Total Food & Liquor Convenience Total Segment revenue (Gregorian) 6,878 3,78 20,056 6,496 3,59 20,087 Less: Other revenue (226) (6) (232) (22) (7) (29) Headline sales (Gregorian) 6,652 3,72 9,824 6,284 3,584 9,868 Plus: Gregorian adjustment Headline sales revenue (Retail) 3 7,020 3,257 20,277 6,657 3,666 20,323 Segment revenue for Food & Liquor includes property revenue for 206 of $0m & 205 of $3m. 2 Adjustment to headline sales revenue to reflect retail period end reflects the 27 week period 27 June 206 to January 207 & the 27 week period 29 June 205 to 3 January 206. Coles 207 Half-year results 9

10 Home Improvement

11 Home Improvement: store network locations as at 3 December 206 Australia & New Zealand Warehouse stores Smaller format stores Trade Centres New Zealand New South Wales / ACT Queensland 42 7 South Australia / NT Tasmania 6 - Victoria Western Australia Total United Kingdom & Ireland Homebase stores Republic of Ireland Northern Ireland 9 Scotland 2 Yorkshire & The North 35 The Midlands 37 East England 32 South England 69 London 29 Wales 2 Total 255 Excluding St Albans Griffiths Way, which closed in November 206 and reopened as Bunnings on 2 February 207. Home Improvement 207 Half-year results

12 Home Improvement: store network movements Open at 30 June 206 Opened Closed Open at 3 Dec 206 Expanded Under construction 3 Dec 206 Australia & New Zealand Bunnings Warehouse () Bunnings smaller formats 70 4 () 73 - Bunnings Trade Centres UK & Ireland (acquired 265 stores at end Feb 6) Homebase (5) St Albans Griffiths Way closed in November 206 and reopened as Bunnings on 2 February 207. Home Improvement 207 Half-year results 2

13 Department Stores

14 Target

15 Target network as at 3 December Large Small Target 207 Half-year results 5

16 Target network Open at 30 June 206 Opened Closed Open at 3 Dec 206 Large 86 (2) 85 Small 20 - () 9 Total 306 (3) 304 Target 207 Half-year results 6

17 Revenue reconciliation Half-year ended 3 December ($m) Segment revenue (Gregorian),623,972 Less: Non sales revenue () - Headline sales (Gregorian),622,972 Add: Gregorian adjustment Headline sales revenue (Retail) 2,658 2,008 Adjustment to headline sales revenue to reflect retail period year end reflects the 27 week period 26 June 206 to 3 December 206 & the 27 week period 28 June 205 to 2 January 206. Target 207 Half-year results 7

18 Kmart

19 Kmart network as at 3 December Kmart stores KTAS centres Kmart 207 Half-year results 9

20 Store network movements Open at 30 June 206 Opened Closed Open at 3 Dec 206 Kmart Kmart Tyre & Auto (3) 250 Kmart 207 Half-year results 20

21 Revenue reconciliation Half-year end 3 Dec ($m) Segment revenue (Gregorian) 2,996 2,750 Less: Non sales revenue () () Headline sales (Gregorian) 2,995 2,749 Add: Gregorian adjustment Headline sales revenue (Retail) 2 3,055 2,799 Adjustment to headline sales revenue to reflect retail period end reflects the 27 week period 27 June 206 to January 207 & the 27 week period 29 June 205 to 3 January 206. Kmart 207 Half-year results 2

22 Officeworks

23 Officeworks network as at 3 December Officeworks Stores Fulfilment Centres Call Centre Print Hub 50 2 Officeworks 207 Half-year results 23

24 Store network movements Open at 30 June 206 Opened Closed Open at 3 Dec 206 Officeworks Officeworks 207 Half-year results 24

25 Industrials

26 Chemicals, Energy & Fertilisers - Sales, pricing & production kt,200,000 Strong Fertiliser sales volumes st Half 2nd Half $/t Significant decline in ammonia pricing Ammonia (US$, FOB Middle East) Ammonia (A$, FOB Middle East) FY203 FY204 FY205 FY206 FY Dec- Jun-2 Dec-2 Jun-3 Dec-3 Jun-4 Dec-4 Jun-5 Dec-5 Jun-6 Dec-6 $/tonne,400,200 Saudi CP remains low in USD & AUD terms Saudi CP US$/t (propane) Saudi CP A$/t (propane) kt 200 Lower content driving reduced LPG production t/tj 0.7, Dec-06 Dec-07 Dec-08 Dec-09 Dec-0 Dec- Dec-2 Dec-3 Dec-4 Dec-5 Dec-6 Chemicals, Energy & Fertilisers 0 FY203 FY204 FY205 FY206 FY207 H LPG production (kt) H2 LPG production (kt) H average LPG content (t/tj) FY average LPG content (t/tj) 207 Half-year results

27 Industrial & Safety - Distribution network as at 3 December locations with 89 branches, 98 gas distribution points & 58 Workwear franchises 28 Blackwoods 90 Workwear Group (incl. 58 franchised) Coregas (incl. 98 distribution points) Greencap Indonesia UAE 2 UK Industrial & Safety 207 Half-year results 27

28 Resources - Global environment: current & short-term trends World blast furnace iron production stable Steel prices have not moved to same extent as raw materials Metallurgical coal market continues to be volatile Recent spot prices for metallurgical export coal have traded lower Inventory concerns at steel mills in China have alleviated Current market price above marginal cost of production for swing supply regions (US, Mongolia), some supply response expected Force Majeure lifted at major Australian mines, total Australian exports have increased & limited wet season impact so far Chinese policy indicates preference for a stabilised price Resources 207 Half-year results 28

29 Australian coal market prices 250 Australian steaming coal prices US$/tonne (nominal) FOB Australia (annual versus spot) Australian hard coking coal prices US$/tonne (nominal) FOB Australia (annual versus spot) JPU Reference Price Spot Price Annual Reference Price Quarterly Benchmark Reference Price Spot Price Source: Energy Publishing, Tex Report, Macquarie Research, CRU Resources 207 Half-year results 29

30 Curragh export metallurgical sales product mix H FY7 Actual 4.m tonnes FY7 Forecast m tonnes Hard 39% Semi 26% Hard 38% Semi 23% 202/203 Actual PCI 35% 202/203 Actual PCI 39% Resources 207 Half-year results 30

31 Resources - Coal production volumes Half-year ended ( 000 tonnes) Mine Ownership Coal Type Dec 206 Dec 205 Curragh, QLD 00% Metallurgical 3,99 3,986 Steaming,899,79 Bengalla, NSW 40% Steaming,74,680 Total 7,532 7,457 Wesfarmers attributable production. Resources 207 Half-year results 3

32 Resources - Coal sales volumes Half-year ended ( 000 tonnes) Mine Ownership Coal Type Dec 206 Dec 205 Curragh, QLD 00% Metallurgical 4,27 4,75 Curragh metallurgical coal sales excludes traded coal. 2 Wesfarmers attributable sales. Steaming,888,89 Bengalla, NSW 2 40% Steaming,725,733 Total 7,740 7,727 Resources 207 Half-year results 32

33 Resources financial summary Half-year ended 3 December ($m) Commentary Export revenue Produced Realised Favorable impact of higher export sale prices partially offset by Hedge book losses (45) (70) higher Australian dollar and locked in hedge book losses Total Export mining & other costs 2 (383) (440) Higher cash costs offset by lower inventory drawdowns relative to prior period, & lower rail costs Traded earnings () 2 Export contribution to earnings Stanwell Corporation obligations Domestic coal supply (44) (42) Impact of Stanwell Corporation obligations continue to negatively Export rebate (30) (35) affect earnings, including contracted domestic coal supplied below cost Total (74) (77) Stanwell litigation provision release 35 - State government royalties (60) (46) EBITDA 7 (44) Lower depreciation and amortisation following impairment charge Depreciation & amortisation (33) (74) recorded in FY6 EBIT 38 (8) Bengalla reported at 40% share. 2 Simple unit cost averages will be impacted by tonnage & cost structure variances between mines. Resources 207 Half-year results 33

34