202 Full-Year Results Supplementary Information (To be read in conjunction with the Full-Year Results Teleconference presentation) 6 August 202
Presentation outline 2 Item Page Coles 3 2 Home Improvement & Office Supplies 7 3 Target 4 Kmart 5 5 Insurance 9 6 Resources 26 7 Chemicals, Energy & Fertilisers 37 8 Industrial & Safety 43 9 Other Business & Capital Management 46
Coles
Coles network As at 30 June 202 Coles 4 Selling Area 6 7 0 Supermarkets (sqm),630,68 Liquor (sqm) ex hotels 90,247 82 00 6 68 749 Supermarkets 792 Liquor stores 92 Hotels 52 30 6 627 Convenience stores 43 52 22 76 246 26 4 68 96 82 5 2 5 2
Store network movements Coles 5 Supermarkets Open at 30 June 20 Opened Closed Re- Branded Open at 30 June 202 Coles 696 9 (9) 4 70 Bi-Lo 45 - (2) (4) 39 Total Supermarkets 74 9 () - 749 Liquor st Choice 76 8 - - 84 Vintage Cellars 83 3 (4) (2) 80 Liquorland 626 24 (24) 2 628 Hotels 93 (2) - 92 Total Liquor 878 36 (30) - 884 Convenience 620 0 (3) - 627
Revenue reconciliation Coles 6 Year ended 30 June ($m) 202 20 Food & Convenience Total Food & Convenience Total Liquor Liquor Segment revenue (Gregorian) 26,56 7,556 34,7 25,282 6,79 32,073 Less: Other revenue 205 2 27 7 5 86 Headline sales (Gregorian) 26,356 7,544 33,900 25, 6,776 3,887 Less: Gregorian adjustment 2 74 28 202 86 33 9 Headline sales revenue (Retail 3 ) 26,82 7,56 33,698 25,025 6,743 3,768 Food & Liquor includes Property. 2 Adjustment to headline sales revenue to reflect 30 June financial year end. 3 Retail period relates to the 52 week period 27 June 20 to 24 June 202 for 202 & to the 52 week period 28 June 200 to 26 June 20 for 20.
Home Improvement & Office Supplies
Bunnings network As at 30 June 202 Home Improvement and Office Supplies 8 206 Warehouse stores 2 58 Smaller format stores 36 Trade centres 25 7 4 0 3 2 33 5 0 6 7 7 7 24 5 9 2 2 5
Officeworks network As at 30 June 202 Home Improvement and Office Supplies 9 Retail Stores 39 Officeworks 2 Harris Technology Business 3 8 26 45 4 Fulfilment centres 2 Service centres Print Hub 44 2
Store network movements Home Improvement and Office Supplies 0 Home Improvement Open at 30 June 20 Opened Closed Open at 30 June 202 Under construction at 30 June 202 Bunnings Warehouse 94 3 () 206 9 Bunnings smaller formats 59 (2) 58 Bunnings Trade Centres 36 2 (2) 36 - Office Supplies Officeworks 35 6 (2) 39 4 Harris Technology 4 - (2) 2 -
Target
Target network As at 30 June 202 Target 2 2 9 2 8 0 34 28 55 46 79 Target Stores 47 24 22 Target Country 4
Store network movements Target 3 Open at 30 June 20 Opened Closed Open at 30 June 202 Under construction at 30 June 202 Target,2 72 8 () 79 Target Country 2 9 4 () 22 4 30 June 202 includes three Target Urban stores & one Target Outlet store. 2 Target store numbers include one replacement store & Target Country includes one replacement store.
Revenue reconciliation Target 4 Year ended 30 June ($m) 202 20 Segment revenue (Gregorian) 3,738 3,782 Less: Non sales revenue - - Headline sales (Gregorian) 3,738 3,782 Less: Gregorian adjustment 34 Headline sales revenue (Retail 2 ) 3,704 3,77 Adjustment to headline sales revenue to reflect 30 June financial year end. 2 Retail period relates to the 52 week period 26 June 20 to 23 June 202 for 202 & to the 52 week period 27 June 200 to 25 June 20 for 20.
Kmart
Kmart network As at 30 June 202 Kmart 6 2 5 85 Kmart stores 260 Kmart Tyre Auto Services centres 36 55 2 28 3 8 50 75 43 74 2 5 5 3
Store network movements Kmart 7 Open at 30 June 20 Opened Closed Open at 30 June 202 Kmart 87 (3) 85 Kmart Tyre & Auto 25 4 (5) 260
Revenue reconciliation Kmart 8 Year ended 30 June ($m) 202 20 Segment revenue (Gregorian) 4,055 4,036 Less: Non sales revenue 4 2 Headline sales (Gregorian) 4,05 4,034 Less: Gregorian adjustment 3 4 Headline sales revenue (Retail 2 ) 4,020 4,020 Adjustment to headline sales revenue to reflect 30 June financial year end. 2 Retail period relates to the 52 week period 27 June 20 to 24 June 202 for 202 & to the 52 week period 28 June 200 to 26 June 20 for 20.
Insurance
Insurance business overview Insurance 20 Group/ Company Wesfarmers Insurance Operations Australian Underwriting New Zealand Underwriting Broking Premium Funding Business Units Lumley WFI Affinity & Direct Lumley Lumley Business Solutions AUS NZ UK WI Premium Funding Brands
Geographical presence As at 30 June 202 Insurance 2 3 UK 4 2 2 5 2 2 2 8 5 7 7 Lumley Insurance (Australia) Lumley General New Zealand WFI OAMPS 3 79 33 5 2 2 2 7 8 4 7 Crombie Lockwood 25 OAMPS New Caledonia location not shown.
Underwriting performance summary Insurance 22 Year ended 30 June ($m) 202 20 Gross Written Premium,504,426 5.5 Net Earned Premium,86,062.7 Net Claims (932) (773) (20.6) Net Commission & Expenses (387) (388) 0.3 Underwriting Result (33) (99) (34.3) Insurance Margin (83) (5) (62.7) EBITA (58) (29) (00.0) EBIT (58) (29) (00.0) EBIT (excluding EQ2) 50 (29) n.m Investment Income ($m) 75 70 Net Earned Loss Ratio (%) 78.5 72.8 Combined Operating Ratio (%).2 09.3 Combined Operating Ratio (%) (excluding EQ2) 02. 09.3 Insurance Margin (%) (7.0) (4.8) Excludes $08 million one-off impact on underwriting earnings from reserve increases in 202 in relation to the 22 February 20 Christchurch earthquake (EQ2). %
Broking performance summary Insurance 23 Year ended 30 June ($m) 202 20 % Commission & Fee Income 235 20 6.9 Other Income 32 24 33.3 Total Income 267 225 8.7 Expenses (88) (63) (5.3) EBITA 79 62 27.4 EBIT 67 52 28.8 EBITA Margin (%) 29.6 27.5
Underwriting KPIs Year ended 30 June (%) 202 20 Insurance % pt 24 Gross Earned Loss Ratio 82.6 4.8 (32.2) Gross Earned Loss Ratio (excluding EQ2) 7.0 4.8 (43.8) Net Earned Loss Ratio 78.5 72.8 5.7 Net Earned Loss Ratio (excluding EQ2) 69.4 72.8 (3.4) Reinsurance Expenses (% GEP) 9.0 20.7 (.7) Exchange Commission (% RI excl XOL) 23.0 25.2 (2.2) Commission Expense (% GWP) 2.5 2.5 - Total Earned Expenses (% GEP) 28.9 32.0 (3.) Combined Operating Ratio (% NEP).2 09.3.9 Combined Operating Ratio (% NEP) (excluding EQ2) 02. 09.3 (7.2) Insurance Margin (% NEP) (7.0) (4.8) (2.2) Insurance Margin (% NEP) (excluding EQ2) 2. (4.8) 6.9 Excludes $08 million one-off impact on underwriting earnings from reserve increases in 202 in relation to the 22 February 20 Christchurch earthquake (EQ2).
Gross written premium (underwriting) Insurance 25 Liability 3% Marine 3% Engineering 4% Personal 26% Total: $,504m Commercial Motor 25% Crop 2% Commercial 27%
Resources
Business environment Resources 27 Metallurgical coal US$ price Increase achieved for July to September quarter FY3 Recent softening in spot export coal prices But uncertain metallurgical coal demand outlook Poor economic conditions in Eurozone Slowing growth in China A$/US$ exchange rate remains uncertain Recent unfavourable movement Ongoing tight labour market & industry cost pressures Long-term metallurgical coal outlook remains sound Driven by demand growth in India & China
Resources financial summary Resources 28 Year ended 30 June 202 20 Commentary Production tonnes ( 000 tonnes) Curragh & Bengalla Premier Coal 2,436,620 0,096 3,503 Revenue ($m) Produced,997,699 Traded 35 79 Increased production achieved with expansion project completion at Curragh & Bengalla; Premier Coal production to 30 December 20 Total 2,32,778 Higher average export metcoal price combined with higher sales volumes Government royalties ($m) Stanwell (29) (3) Driven by increase in average $A sales prices & increased volumes Other (49) (6) Increase in line with increased revenue Total (368) (229) Mining & other costs ($m) 20 flood recovery costs & Curragh expansion costs (55) 0 H 202 flood recovery/expansion-related cost Traded coal cost (8) (75) Mining & other costs (,002) (986) Attributable to increased overburden removal costs & greater production associated with commissioning of Curragh 2H wash plants & Bengalla expanded wash plant Total (,75) (,06) Depreciation & amortisation ($m) (50) (9) EBIT 439 369 Wesfarmers attributable production (202: 2.3mt; 20: 2.2mt).
Australian export coal market prices Resources 29 Source: Energy Publishing, Tex Report, Macquarie Research, CRU.
Curragh export metallurgical sales product mix Resources 30 FY2 Actual 7.2 million tonnes FY3 Forecast 8.0 8.5 million tonnes
Coal production volumes Resources 3 Mine Beneficial Interest Coal Type Year Ended ('000 tonnes) Jun 202 Jun 20 Curragh, QLD 00% Metallurgical 7,27 5,383 Steaming 2,884 2,470 Bengalla, NSW 40% Steaming 2,335 2,243 Total 2,436 0,096 Wesfarmers attributable production.
Coal sales volumes Resources 32 Mine Beneficial Interest Coal Type Year Ended ('000 tonnes) Jun 202 Jun 20 Curragh, QLD 00% Metallurgical 7,5 5,334 Steaming 2,946 2,568 Bengalla, NSW 2 40% Steaming 2,356 2,40 Total 2 2,453 0,32 Curragh metallurgical coal sales excludes traded coal of 526kt (20: 375kt). 2 Wesfarmers attributable sales.
Curragh ongoing cost-control focus Resources 33 >20% reduction in unit cost in 2H FY2 versus H FY2 2H FY2 in bottom quartile of export FOB cash cost for hard coking coal producers Delayed commissioning of CHPP2 Mine cash costs return to more normal levels million tonnes $/tonne For personal use only
FX hedging profile as at 30 June 202 Resources 34 Curragh Bengalla Year end 30 June Current US$ sold forward (US$m) Average A$ / US$ hedge rate 203 87 0.88 204 505 0.87 205 334 0.85 206 92 0.90 207 30 0.87 Year end 30 June Current US$ sold forward (US$m) Average A$ / US$ hedge rate 203 2 0.92 204 53 0.89 205 20 0.87 206 88 0.89 207 5 0.87
Curragh mine expansion Resources 35 Wesfarmers approved in November 2009 the investment of $286 million to expand Curragh metallurgical coal exports to 8.0 8.5mtpa Practical completion achieved 29 June 202 Capital expenditure within budget Stage 2 feasibility study expansion to 0mtpa metallurgical coal exports continuing Feasibility study target for completion H2 CY2
Bengalla mine expansion Resources 36 Expansion to 0.7mtpa ROM through two stages: Stage : 9.3mtpa ROM Stage 2: 0.7mtpa ROM Stage expansion now complete Project cost within budget Stage 2 feasibility study ongoing
Chemicals, Energy & Fertilisers
Fertiliser sales Chemicals, Energy & Fertilisers 38 kt,200,000 2nd Half st Half 800 670 600 400 53 649 60 74 200 387 226 264 244 227 0 FY2008 FY2009 FY200 FY20 FY202 0.2% uplift in volumes from previous year
Global fertiliser & ammonia pricing Chemicals, Energy & Fertilisers 39 US$/t,400,200 Urea (FOB Middle East) DAP (FOB US Gulf) Ammonia (FOB Middle East),000 800 600 400 200 0 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-0 Jul-0 Jan- Jul- Jan-2 Jul-2 Recovery in US$ prices following declines in late CY
PVC-VCM spread Chemicals, Energy & Fertilisers 40 The PVC VCM Spread refers to the difference between the Asian PVC selling price & VCM input cost $/t 300 FY Average US$/t FY Average A$/t 250 200 50 00 50 0 2002 2003 2004 2005 2006 2007 2008 2009 200 20 202 Source: Harriman Front Page Asian mid points A$ Spread at long-term historical low
World LPG prices Saudi CP Chemicals, Energy & Fertilisers 4 $/tonne,400,200 Saudi CP US$/t (propane) Saudi CP A$/t (propane),000 800 600 400 200 0 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-0 Jun- Jun-2 Significant volatility in LPG prices over the year
LPG production Chemicals, Energy & Fertilisers 42 Production lower than previous year due to reduced content
Industrial & Safety
Our business portfolio Industrial & Safety 44 Generalists Safety specialists Industrial specialists
Distribution network As at 30 June 202 Industrial & Safety 27 industrial & safety branches & 35 gas distribution points Australia No. Indonesia 45 74 44 26 2 8 27 New Zealand No. 26 26 24 0 2 3 9 9 4 7 2 4 4 5 2 2 7 2 7 7 9 7 46 6 7 4 3 5 34 3 3 Note: Blackwoods includes Bakers & Migomag; Coregas includes eight owned branches & 27 distribution points. 26 0 24
Other Business & Capital Management
Overview of the Group balance sheet 47 Year ended 30 June ($m) 202 20 Commentary Inventories 5,006 4,987 Trade & other payables (5,445) (5,090) Receivables & prepayments 2,564 2,263 Other 47 264 Net working capital 2,542 2,424 Net insurance liabilities (322) (224) Reduction in reinsurance recoveries receivable partially offset by increased insurance investments Property, plant & equipment 9,463 8,302 Capital expenditure of $2.6 billion in 202 partially offset by depreciation & amortisation as well as disposals Intangibles 20,490 20,580 202 includes Coregas impairment partially offset by insurance bolt-on acquisitions Other investments,77,25 Detailed working capital discussion provided on slide 48 (Supplementary Information) Provisions & other liabilities (2,724) (2,532) Increased rehabilitation & workers compensation provisions due to lower Government bond rate & Target restructuring provision ($40 million) in 202 Total capital employed 30,626 29,80 Net financial debt (5,08) (4,564) Continued diversification & lengthening of debt profile; strong capital investment phase Net tax balances 9 92 Increase in income tax payable Total net assets 25,627 25,329 Notes: Net debt net of interest rate swap liabilities
Balance sheet - working capital 48 Year ended 30 June ($m) 202 20 Commentary Inventories 5,006 4,987 Inventory increased by $9 million (202 v 20) Home Improvement: Higher inventory following strong network expansion & increased sales Coles: Reduction from prior year which included safety stock build ahead of supply system change (Easy Warehousing) Kmart & Target: Improved inventory days Trade & other payables (5,445) (5,090) Payables increased by $355 million (202 v 20) Retail & WIS: Higher sales volumes driving increased payables Wes CEF: Earlier timing of fertiliser shipments partially offset by lower PVC prices Receivables (including prepayments) 2,564 2,263 Receivables increased by $30 million (202 v 20) Insurance: Increased premium funding receivables due to business growth Resources & WIS: Increased sales driving higher receivables Other 47 264 Net working capital 2,542 2,424 Note: The above table refers to balance sheet movements only. Working capital movements as shown on slide 59 of the presentation are adjusted for non-cash movements & exclude movements related to investing & financing activities which are included in the table above.
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