2017 Full-year Results Supplementary Information
Thursday, 17 August 2017
(to be read in conjunction with the 2017 Full-year Results Briefing Presentation) For personal use only use personal For Presentation outline
Item Page
Group Balance Sheet & Cash Flow 3
Coles 6
Home Improvement 10
Department Stores 14
- Target 15
- Kmart 19
Officeworks 23
Industrials 26 For personal use only use personal For
2017 Full-year results | 2 Group Balance Sheet & Cash Flow
Terry Bowen
Finance Director, Wesfarmers Limited For personal use only use personal For Group management balance sheet – overview
Year ended 30 June ($m)1 2017 2016 Commentary Inventories 6,530 6,260 Receivables & prepayments 1,936 1,950 Trade & other payables (6,616) (6,492) Detailed working capital discussion provided on slide 5 Other 410 411 Net working capital 2,260 2,129 Decrease due to the divestment of Coles’ interest in Property, plant & equipment 9,440 9,612 joint venture properties to ISPT & sale of land by WesCEF Decrease due to the impact of appreciating Intangibles 18,936 19,073 AUD:GBP on Homebase acquisition intangibles & sale of Coles’ credit card receivables Other assets 622 619 Decrease due to the utilisation of Homebase Provisions & other liabilities (3,676) (3,770) provisions recognised on acquisition & adjustment to Stanwell litigation provision Total capital employed 27,582 27,663 Decrease due to repayment of debt during the year: • $500m of domestic medium term notes repaid in Net debt excluding financial services debt2 (4,321) (5,727) November 2016 • Over $900m debt repaid following sale of Coles’ credit card receivables in February 2017 Reduction due to increased tax paid in FY17, largely For personal use only use personal For Net tax balances 680 1,013 driven by the improvement in Resources earnings Total net assets 23,941 22,949
1. The above balances reflect the management balance sheet, which is based on different classification & groupings than the balance sheet in the Appendix 4E. 2. Net debt including cross currency swap assets / liabilities & excluding financing of credit book relating to the Coles credit card. 2017 Full-year results | 4 Balance sheet – working capital
Year ended 30 June ($m)1 2017 2016 Commentary • Retail network growth & investment in stock depth, partly offset by lower inventory in Target Inventories 6,530 6,260 • Higher fertiliser inventory in WesCEF
Receivables & prepayments 1,936 1,950 • Increase due to retail network growth & higher Trade & other payables (6,616) (6,492) purchases to support sales growth, partly offset by lower inventory purchases at Target Other 410 411
Net working capital 2,260 2,129 For personal use only use personal For
1. The above table refers to balance sheet movements only. Working capital movements as shown on slide 12 of the 2017 Full-year Briefing Presentation exclude non-cash movements which are included in the table above. 2017 Full-year results | 5 Coles
John Durkan
Managing Director, Coles For personal use only use personal For Coles network as at 30 June 2017
Selling Area
Supermarkets (sqm) 1,835,743 7 8 11 Liquor (sqm) – ex hotels 211,373
166 237 77 95 114 4 83 138 801 Supermarkets 56 34 7 46 883 Liquor stores 254 279 1 89 Hotels 214 195 702 Convenience 207 211
16 15 For personal use only use personal For
2017 Full-year results | 7 Store network movements
Open at Open at 30 June Opened Closed Re-branded 30 June 2016 2017 Supermarkets Coles 786 21 (8) 1 800 Bi-Lo 1 - - - 1 Total Supermarkets 787 21 (8) 1 801 Liquor First Choice 97 3 (1) - 99 Vintage Cellars 81 1 - - 82 Liquorland 687 25 (10) - 702 Hotels 89 - - - 89 Total Liquor 954 29 (11) - 972
Convenience 690 17 (5) - 702 For personal use only use personal For
2017 Full-year results | 8 Revenue reconciliation
Year ended 30 June ($m) 2017 2016 Food & Food & Convenience Total Convenience Total Liquor Liquor Segment revenue 33,084 6,133 39,217 32,564 6,678 39,242 (Gregorian)1
Less: Other revenue (374) (12) (386) (415) (13) (428)
Headline sales 32,710 6,121 38,831 32,149 6,665 38,814 (Gregorian) Less: Gregorian (98) (8) (106) (171) (34) (205) adjustment2 Headline sales revenue 32,612 6,113 38,725 31,978 6,631 38,609
(Retail)3 For personal use only use personal For
1. Segment revenue for Food & Liquor includes property revenue for 2017 of $16m & for 2016 of $25m. 2. Adjustment to headline sales revenue to reflect retail period end. 3. 2017 reflects the 52 week period 27June 2016 to 25 June 2017 & 2016 reflects the 52 week period 29 June 2015 to 26 June 2016. 2017 Full-year results | 9 Home Improvement
Michael Schneider Managing Director, Bunnings Group
Managing Director, Bunnings Australia & New Zealand For personal use only use personal For Bunnings Australia & NZ: store network locations
Bunnings Bunnings Bunnings Trade Warehouse smaller formats Centres
Victoria 57 13 5 South Australia/NT 16 4 2 Tasmania 6 - 1 New South Wales/ACT 72 17 7 Queensland 42 13 7 Western Australia 29 10 4
New Zealand 27 20 7 For personal use only use personal For
2017 Full-year results | 11 Bunnings UK & Ireland: store network locations
Homebase Bunnings1
Republic of Ireland 11 Northern Ireland 9 Scotland 21 North England 35 Midlands 37 East England 30 3 London 29 South England 68 1
Wales 11 For personal use only use personal For
1. Bunnings Warehouses in Hertfordshire (St Albans x 2, Hemel Hempstead) within “East of England” statistical region; Bunnings Warehouse in Buckinghamshire (Milton Keynes) within “South East” statistical region. 2017 Full-year results | 12 Home Improvement: store network locations
Open at Open at Under 30 June Opened Closed 30 June Expanded construction 2016 2017 30 June 2017
Australia & New Zealand
Bunnings Warehouse 244 9 (4) 249 - 10
Bunnings smaller formats 70 8 (1) 77 1 3
Bunnings Trade Centres 33 1 (1) 33 - -
UK & Ireland
Bunnings - 4 - 4 - 1
Homebase 260 - (9) 251 - - For personal use only use personal For
2017 Full-year results | 13 Department Stores
Guy Russo Chief Executive Officer, Department Stores
Managing Director, Target For personal use only use personal For Target
Guy Russo Chief Executive Officer, Department Stores
Managing Director, Target For personal use only use personal For Target network
2 1 184 Large
119 Small 33 29 21 12 18 10 57 41
48 25
5 1 For personal use only use personal For
2017 Full-year results | 16 Store network movements
Open at Open at Opened Closed 30 June 2016 30 June 2017
Large 186 1 (3)1 184 Small 120 - (1) 119
Total 306 1 (4)1 303 For personal use only use personal For
1. Includes two Target stores converted to Kmart during the period.
2017 Full-year results | 17 Revenue reconciliation
Year ended 30 June ($m) 2017 2016 Var %
Segment revenue (Gregorian) 2,950 3,456 (14.6)
Less: Non sales revenue (4) (1)
Headline sales (Gregorian) 2,946 3,455 (14.7)
Less: Gregorian adjustment1 (5) (16)
Headline sales revenue (Retail)2 2,941 3,439 (14.5) For personal use only use personal For
1. Adjustment to headline sales revenue to reflect retail period end. 2. 2017 reflects the 52 week period 26 June 2016 to 24 June 2017 & 2016 reflects the 52 week period 28 June 2015 to 25 June 2016. 2017 Full-year results | 18 Kmart
Ian Bailey
Managing Director, Kmart For personal use only use personal For Kmart network
3 4 220 Kmart stores
251 KTAS centres 45 55 25 25 15 17 57 77
50 69 16
5 4
4 For personal use only use personal For
2017 Full-year results | 20 Store network movements
Open at Open at Opened Closed 30 June 2016 30 June 2017
Kmart 209 111 - 220
Kmart Tyre & Auto 248 7 (4) 251 For personal use only use personal For
1. Includes two Target stores converted to Kmart during the period.
2017 Full-year results | 21 Revenue reconciliation
Year ended 30 June ($m) 2017 2016 Var %
Segment revenue (Gregorian) 5,578 5,190 7.5
Less: Non sales revenue (1) (2)
Headline sales (Gregorian) 5,577 5,188 7.5
Add: Gregorian adjustment1 (17) (34)
Headline sales revenue (Retail)2 5,560 5,154 7.9 For personal use only use personal For
1. Adjustment to headline sales revenue to reflect retail period end. 2. 2017 reflects the 52 week period 27 June 2016 to 25 June 2017 & 2016 reflects the 52 week period 29 June 2015 to 26 June 2016. 2017 Full-year results | 22 Officeworks
Mark Ward
Managing Director, Officeworks For personal use only use personal For Officeworks network
1 164 Officeworks Stores 3 Fulfilment Centres 30 15 1 1 Call Centre 10 1 Print Hub 56 1 1 1
50 1
2 For personal use only use personal For
2017 Full-year results | 24 Store network movements
Open at Open at Opened Closed 30 June 2016 30 June 2017
Officeworks 159 6 (1) 164 For personal use only use personal For
2017 Full-year results | 25 Industrials
Rob Scott
Managing Director, Industrials For personal use only use personal For Chemicals, Energy & Fertilisers - Sales, pricing & production
kt Dry season driving lower Fertiliser sales volumes Volatility in global ammonia pricing 1,200 $/t 2nd Half 1st Half 800 Ammonia (US$, FOB Middle East) 1,000 700 Ammonia (A$, FOB Middle East)
600 800 500 776 866 600 713 722 779 400
300 400
200 200 100 220 260 214 234 160 0 0 FY2013 FY2014 FY2015 FY2016 FY2017 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Saudi CP remains low in USD & AUD terms Content levels driving LPG production $/tonne t/TJ 1,400 kt Saudi CP US$/t (propane) 200 0.7 Saudi CP A$/t (propane) 1,200
150 1,000 0.6
800 100
600 0.5 50 400
200 0 0.4
For personal use only use personal For FY2013 FY2014 FY2015 FY2016 FY2017 H1 LPG production (kt) H2 LPG production (kt) 0 H1 average LPG content (t/TJ) FY average LPG content (t/TJ) Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17
2017 Full-year results | 27 Industrial & Safety - Distribution network as at 30 June 2017 447 locations with 186 branches, 200 gas distribution points & 61 Workwear franchises
126 Blackwoods
93 Workwear Group (incl. 61 franchised) 3 3 Coregas (incl. 200 distribution points) 1 1 22 62 218 26 1 22 18 10 Greencap 16 1 6 31 5 1 21 52 19 4
36 31 12 21 1 Indonesia 2 1 20 1 3
1 UAE 2 For personal use only use personal For 1 UK
2017 Full-year results | 28 Australian coal market prices
Australian steaming coal prices Australian hard coking coal prices US$/tonne (nominal) FOB Australia (annual versus spot) US$/tonne (nominal) FOB Australia (annual versus spot)
200 400
175 350
150 300
125 250
100 200
75 150
50 100
25 50
0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Annual Reference Price JPU Reference Price Spot price Quarterly Benchmark Reference Price
Spot Price For personal use only use personal For
Source: Energy Publishing, Tex Report, Macquarie Research, CRU
2017 Full-year results | 29 Curragh export metallurgical sales product mix
FY17 Actual FY18 Forecast 8.2 million tonnes 8.5 – 9.0 million tonnes
SEMI SEMI 23% 12%
HARD HARD 42% 46%
PCI PCI
35% 42% For personal use only use personal For
2017 Full-year results | 30 Resources – Coal production volumes
Year ended (‘000 tonnes)
Mine Ownership Coal Type June 2017 June 2016
Curragh, QLD 100% Metallurgical 8,227 7,316
Steaming 3,801 3,263
Bengalla, NSW1 40% Steaming 3,437 3,384
Total 15,465 13,963 For personal use only use personal For
1. Wesfarmers attributable production.
2017 Full-year results | 31 Resources – Coal sales volumes
Year ended (‘000 tonnes)
Mine Ownership Coal Type June 2017 June 2016
Curragh, QLD1 100% Metallurgical 8,162 7,488
Steaming 3,684 3,386
Bengalla, NSW2 40% Steaming 3,408 3,382
Total 15,254 14,256 For personal use only use personal For
1. Curragh metallurgical coal sales excludes traded coal. 2. Wesfarmers attributable sales. 2017 Full-year results | 32 Resources – Financial summary
Year ended 30 June1 ($m) 2017 2016 Commentary Export revenue
Produced – Realised 1,676 1,012 Higher export coal sales prices & lower hedge book losses partially – Hedge book gains / (losses) (92) (147) offset by a marginally higher Australian dollar Total 1,584 865
2,3 Higher unit mine cash costs per tonne, offset by favourable inventory Export mining & other costs (803) (806) movement
Traded earnings (1) 3
Export contribution to earnings 780 62
Stanwell Corporation obligations Domestic coal supply (88) (83)
Export rebate (98) (65) Export rebate higher due to increase in revenue in FY17 Total (186) (148) Stanwell litigation provision release 35 -
State government royalties (164) (78) State government royalties higher due to higher revenue EBITDA3 465 (164)
For personal use only use personal For Depreciation & amortisation (60) (146) EBIT 405 (310)
1. Bengalla reported at 40% share. 2. Simple unit cost averages will be impacted by tonnage & cost structure variances between mines. 3. 2016 excludes $850m pre-tax non-cash impairment of Curragh assets. 2017 Full-year results | 33 For personal use only