2016 Full-year Results Supplementary Information

Transcription

1 206 Full-year Results Supplementary Information Wednesday, 24 August 206 (to be read in conjunction with the 206 Full-year Results Briefing Presentation)

2 Presentation outline Item Presenter Page Group Balance Sheet Terry Bowen 3 Coles John Durkan 6 Home Improvement John Gillam 0 Department Stores Guy Russo 3 - Target Guy Russo 4 - Kmart Ian Bailey 8 Officeworks Mark Ward 22 Industrials Rob Scott 25 - Chemicals, Energy & Fertilisers 26 - Industrial & Safety 27 - Resources Full-year Results 2

3 Group Balance Sheet Terry Bowen Finance Director Wesfarmers Limited

4 Group management balance sheet overview ($m) FY6 FY5 Commentary Inventories 6,260 5,497 Receivables & prepayments,950,658 Trade & other payables (6,492) (5,764) Other Net working capital 2,29,784 Detailed working capital discussion provided on slide 5 Property, plant & equipment 9,62 0,205 Impairment of PPE in Curragh & Target partially offset by increased net capital expenditure from retail businesses Intangibles 9,073 9,309 Impairment of Target goodwill partially offset by goodwill on acquisition of Homebase Other assets Provisions & other liabilities (3,770) (3,040) Increase mainly due to Homebase acquisition, restructuring in Target & WIS, & effect of a lower discount rate Total capital employed 27,663 29,033 Net debt excluding financial (5,727) (4,746) Increase mainly due to Homebase acquisition & increase in retail services debt 2 working capital Net tax balances, Increase due to DTA recognised in relation to impairment of Curragh assets & Homebase acquisition, & lower tax payable from losses in Target & Resources Total net assets 22,949 24,78 The above balances reflect the management balance sheet, which is based on different classification & groupings than the balance sheet in the Appendix 4E. 2 Net debt including cross currency swap assets / liabilities & excluding financing of credit book relating to the Coles credit card. 206 Full-year Results 4

5 Balance sheet working capital ($m) FY6 FY5 Commentary Inventories 6,260 5,497 Higher inventories in Retail Investments made to improve stock availability in Homebase Investments to support sales growth Effect of depreciating AUD Lower inventories in Industrials Lower coal production Timing of fertiliser & ammonia shipments Receivables & prepayments,950,658 Higher due to Homebase acquisition & earlier settlement of receipts in the prior year Trade & other payables (6,492) (5,764) Higher mainly due to Homebase acquisition & business growth in Coles & Kmart Other Net working capital 2,29,784 The above table refers to balance sheet movements only. Working capital movements as shown on slide 2 of the 206 Full-year Briefing Presentation exclude non-cash movements which are included in the table above. 206 Full-year Results 5

6 Coles John Durkan Managing Director Coles

7 Coles network as at 30 June Selling Area Supermarkets (sqm),789,290 Liquor (sqm) ex hotels 208, Supermarkets 865 Liquor stores 89 Hotels 690 Convenience Coles 206 Full-year Results 7

8 Store network movements Supermarkets Open at 30 June 205 Opened Closed Re-branded Open at 30 June 206 Coles 77 5 (5) Bi-Lo 5 - (4) - Total Supermarkets (9) Liquor First Choice 00 2 (5) - 97 Vintage Cellars 79 3 () - 8 Liquorland (24) Hotels 90 - () - 89 Total Liquor (3) Convenience (3) Coles 206 Full-year Results 8

9 Revenue reconciliation Year ended 30 June ($m) Food & Liquor Convenience Total Food & Liquor Convenience Total Segment revenue (Gregorian) 32,564 6,678 39,242 30,784 7,47 38,20 Less: Other revenue (45) (3) (428) (279) (3) (292) Headline sales (Gregorian) 32,49 6,665 38,84 30,505 7,404 37,909 Plus: Gregorian adjustment 2 (7) (34) (205) (75) (8) (93) Headline sales revenue (Retail 3 ) 3,978 6,63 38,609 30,430 7,386 37,86 Segment revenue for Food & Liquor includes property revenue for 206 of $25m & for 205 of $29m. 2 Adjustment to headline sales revenue to reflect retail period end reflects the 52 week period 29 June 205 to 26 June 206 & 205 reflects the 52 week period 30 June 204 to 28 June 205. Coles 206 Full-year Results 9

10 Home Improvement John Gillam Chief Executive Officer Bunnings Group

11 Home Improvement: store network location as at 30 June 206 Australia & New Zealand Warehouse stores Smaller format stores Trade Centres New Zealand New South Wales / ACT Queensland South Australia / NT Tasmania 5 Victoria 56 5 Western Australia Total United Kingdom & Ireland Homebase stores Republic of Ireland Northern Ireland 9 Scotland 2 Yorkshire & The North 36 The Midlands 37 East England 34 South England 69 London 3 Wales 2 Total 260 Home Improvement 206 Full-year Results

12 Home Improvement: store network movements Open at 30 June 205 Opened Closed Open at 30 June 206 Expanded Under construction 30 June 206 Australia & New Zealand Bunnings Warehouse (6) Bunnings smaller formats Bunnings Trade Centres 65 7 (2) () UK & Ireland (acquired 265 stores at end Feb 6) Homebase n.a. - (5) Home Improvement 206 Full-year Results 2

13 Department Stores Guy Russo Chief Executive Officer Department Stores Managing Director Target

14 Target Guy Russo Managing Director Target

15 Target network as at 30 June Large Small Target 206 Full-year Results 5

16 Target network Open at 30 June 205 Opened Closed Open at 30 June 206 Large 83 6 (3) 86 Small 22 - (2) 20 Total (5) 306 Target 206 Full-year Results 6

17 Revenue reconciliation Year ended 30 June ($m) Segment revenue (Gregorian) 3,456 3,438 Less: Non sales revenue () - Headline sales (Gregorian) 3,455 3,438 Add: Gregorian adjustment (6) (6) Headline sales revenue (Retail 2 ) 3,439 3,432 Adjustment to headline sales revenue to reflect retail period year end reflects the 52 week period 28 June 205 to 25 June 206 & 205 reflects the 52 week period 29 June 204 to 27 June 205. Target 206 Full-year Results 7

18 Kmart Ian Bailey Managing Director Kmart

19 Kmart network as at 30 June Kmart stores KTAS centres Kmart 206 Full-year Results 9

20 Store network movements Open at 30 June 205 Opened Closed Open at 30 June 206 Kmart Kmart Tyre & Auto (2) 248 Kmart 206 Full-year Results 20

21 Revenue reconciliation Year end 30 June ($m) Segment revenue (Gregorian) 5,90 4,553 Less: Non sales revenue (2) (3) Headline sales (Gregorian) 5,88 4,550 Add: Gregorian adjustment (34) (0) Headline sales revenue (Retail 2 ) 5,54 4,540 Adjustment to headline sales revenue to reflect retail period end reflects the 52 week period 29 June 205 to 26 June 206 & 205 reflects the 52 week period 30 June 204 to 28 June 205. Kmart 206 Full-year Results 2

22 Officeworks Mark Ward Managing Director Officeworks

23 Officeworks network as at 30 June Officeworks Stores Fulfilment Centres Call Centre Print Hub 49 2 Officeworks 206 Full-year Results 23

24 Store network movements Open at 30 June 205 Opened Closed Open at 30 June 206 Officeworks 56 6 (3) 59 Officeworks 206 Full-year Results 24

25 Industrials Rob Scott Managing Director

26 Chemicals, Energy & Fertilisers - Sales, pricing & production kt,200 Strong Fertiliser sales volumes $/t 800 Continued declining trend in ammonia pricing, FY202 FY203 FY204 FY205 FY206 2nd Half st Half $/tonne,400 Saudi CP at 0 year low in USD & AUD terms Jun- Dec- Jun-2 Dec-2 Jun-3 Dec-3 Jun-4 Dec-4 Jun-5 Dec-5 Jun-6 kt 200 Ammonia (US$, FOB Middle East) Ammonia (A$, FOB Middle East) LPG production in line with previous two years despite lower content levels t/tj 0.8,200, Jun-06 Jun-07 Jun-08 Jun-09 Jun-0 Jun- Jun-2 Jun-3 Jun-4 Jun-5 Jun-6 Chemicals, Energy & Fertilisers Saudi CP US$/t (propane) Saudi CP A$/t (propane) FY202 FY203 FY204 FY205 FY206 H LPG production (kt) H2 LPG production (kt) H average LPG content (t/tj) FY average LPG content (t/tj) 206 Full-year Results 26

27 Industrial & Safety - Distribution network As at 30 June locations with 98 branches, 69 gas distribution points & 58 Workwear franchises 34 Blackwoods 92 Workwear Group (incl. 58 franchised) Coregas (incl. 69 distribution points) Greencap UAE Indonesia UK Industrial & Safety 206 Full-year Results 27

28 Resources - Global environment: current & short-term trends World blast furnace iron production (excluding China) trending downwards Chinese production increasing Chinese excess steel capacity being placed into global markets impacting price Metallurgical coal market continues to be volatile US coal export supply rationalisation materialising Increase in Chinese end-user import demand Australian exports have recovered after wet weather impacts in early 206 Spot price volatility & uncertainty expected to continue A$:US$ exchange rate has strengthened through 2H FY6 & volatility expected to continue Resources 206 Full-year Results 28

29 Australian coal market prices 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 206 Full-year Results 29

30 Curragh export metallurgical sales product mix FY6 Actual 7.5 million tonnes FY7 Forecast million tonnes Hard 34% Semi 30% Hard 38% Semi 26% 202/203 Actual PCI 36% 202/203 Actual PCI 36% Resources 206 Full-year Results 30

31 Resources - Coal production volumes Year ended ( 000 tonnes) Mine Ownership Coal Type June 206 June 205 Curragh, QLD 00% Metallurgical 7,36 9,066 Steaming 3,263 3,87 Bengalla, NSW 40% Steaming 3,384 3,304 Total 3,963 5,557 Wesfarmers attributable production. Resources 206 Full-year Results 3

32 Resources - Coal sales volumes Year ended ( 000 tonnes) Mine Ownership Coal Type June 206 June 205 Curragh, QLD 00% Metallurgical 7,488 8,604 Curragh metallurgical coal sales excludes traded coal. 2 Wesfarmers attributable sales. Steaming 3,386 3,202 Bengalla, NSW 2 40% Steaming 3,382 3,35 Total 4,256 5,57 Resources 206 Full-year Results 32

33 Resources financial summary Year ended 30 June ($m) Commentary Export revenue Produced Realised,02,270 Continued fall in export coal prices with benefit of a lower Hedge book losses (47) (42) Australian dollar largely offset by hedge book losses Total 865,228 Export mining & other costs 2,3 (806) (767) Lower cash costs at Curragh offset by inventory drawdowns due to lower production, higher port costs & higher unit cash costs at Bengalla due to mine sequencing Traded earnings 3 2 Export contribution to earnings Stanwell Corporation obligations Domestic coal supply (83) (8) Stanwell Corporation obligations continue to negatively affect Export rebate (65) (67) earnings, including contracted domestic coal supplied below cost Total (48) (48) State government royalties (78) (00) EBITDA 3 (64) 25 Operational EBITDA, excluding hedge book losses, of ($7m) in FY6 ($244m in FY5) Depreciation & amortisation (46) (65) Lower production tonnes at Curragh EBIT 3 (30) 50 Bengalla reported at 40% share. 2 Simple unit cost averages will be impacted by tonnage & cost structure variances between mines excludes $850m non-cash impairment of Curragh assets. Resources 206 Full-year Results 33

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