2016 Half-year Results Supplementary Information To be read in conjunction with the 2016 Half-year Results Briefing Presentation to be held on Wednesday, 24 February 2016 For personal use only Presentation outline Item Presenter Page Coles John Durkan 3 Home Improvement & Office Supplies John Gillam 7 - Home Improvement 8 - Office Supplies 11 Department Stores - Kmart Guy Russo 13 - Target Stuart Machin 17 Industrials Rob Scott 21 - Chemicals, Energy & Fertilisers 22 - Industrial & Safety 24 - Resources 27 Group Balance Sheet & Cash Flow Terry Bowen 35 For personal use only 2016 Half-year Results | 2 Coles John Durkan Managing Director For personal use only Coles network as at 31 December 2015 Selling Area Supermarkets (sqm) 1,771,912 6 7 12 Liquor (sqm) – ex hotels 209,825 161 229 76 91 111 5 75 129 782 Supermarkets 57 34 7 46 865 Liquor stores 245 276 1 89 Hotels 216 188 681 Convenience 206 208 16 15 For personal use only Coles 2016 Half-year Results | 4 Store network movements Open at 30 Re- Open at 31 Opened Closed June 2015 branded Dec 2015 Supermarkets Coles 771 10 (3) - 778 Bi-Lo 5 - (1) - 4 Total Supermarkets 776 10 (4) - 782 Liquor First Choice 100 - (1) - 99 Vintage Cellars 79 2 (1) - 80 Liquorland 679 17 (10) - 686 Hotels 90 - (1) - 89 Total Liquor 948 19 (13) - 954 For personal use only Convenience 662 20 (1) - 681 Coles 2016 Half-year Results | 5 Revenue reconciliation 2015 2014 Half-year ended Food & Food & Convenience Total Convenience Total 31 December ($m) Liquor Liquor Segment revenue 16,496 3,591 20,087 15,559 3,924 19,483 (Gregorian)1 Less: Other revenue (212) (7) (219) (141) (7) (148) Headline sales 16,284 3,584 19,868 15,418 3,917 19,335 (Gregorian) Plus: Gregorian 373 82 455 379 83 462 adjustment2 Headline sales 16,657 3,666 20,323 15,797 4,000 19,797 revenue (Retail3) 1 Segment revenue for Food & Liquor includes property revenue for 2015 of $13 million & for 2014 of $15 million. 2 Adjustment to headline sales revenue to reflect retail period end. 3 Retail period relates to the 27 week period 29 June 2015 to 3 January 2016 & the 27 week period 30 June 2014 to 4 January 2015. For personal use only Coles 2016 Half-year Results | 6 Home Improvement & Office Supplies John Gillam Managing Director For personal use only Bunnings network as at 31 December 2015 3 240 Warehouse stores 67 Smaller format stores 42 9 7 28 9 4 32 Trade Centres 13 3 2 71 16 7 54 10 5 19 19 5 4 1 1 6 1 For personal use only Home Improvement 2016 Half-year Results | 8 Store network movements Open at Open at Under 30 June Opened Closed 31 Dec Expanded construction 2015 2015 31 Dec 2015 Home Improvement Bunnings Warehouse 236 7 (3) 240 4 13 Bunnings smaller 65 3 (1) 67 - 5 formats Bunnings Trade 33 - (1) 32 - - Centres For personal use only Home Improvement 2016 Half-year Results | 9 Home Improvement performance summary Half-year end 31 December ($m) 2015 2014 % Revenue 5,500 4,959 10.9 EBITDA 776 686 13.1 Depreciation & amortisation (75) (68) (10.3) EBIT 701 618 13.4 EBIT margin (%) 12.7 12.5 Less: Net property contribution1 33 14 135.7 Trading EBIT 668 604 10.6 Trading EBIT margin (%) 12.2 12.2 1 Net property contribution includes external property income & expenses & gain or losses on disposals of freehold property. For personal use only Home Improvement 2016 Half-year Results | 10 Officeworks network as at 31 December 2015 1 158 Officeworks Stores 3 Fulfilment Centres 28 15 1 1 Customer Service Centre 8 1 Print Hub 55 1 1 1 49 1 2 For personal use only Office Supplies 2016 Half-year Results | 11 Store network movements Under Open at 30 Open at 31 Opened Closed construction June 2015 Dec 2015 31 Dec 2015 Office Supplies Officeworks 156 4 (2) 158 2 For personal use only Office Supplies 2016 Half-year Results | 12 Kmart Guy Russo Managing Director For personal use only Kmart network as at 31 December 2015 2 3 206 Kmart stores 249 KTAS centres 43 53 23 26 15 18 53 76 47 69 14 5 4 4 For personal use only Kmart 2016 Half-year Results | 14 Store network movements Open at Open at Opened Closed 30 June 2015 31 Dec 2015 Kmart 203 3 - 206 Kmart Tyre & Auto 246 4 (1) 249 For personal use only Kmart 2016 Half-year Results | 15 Revenue reconciliation Half-year end 31 December ($m) 2015 2014 Segment revenue (Gregorian) 2,750 2,442 Less: Non sales revenue (1) (2) Headline sales (Gregorian) 2,749 2,440 Add: Gregorian adjustment1 50 50 Headline sales revenue (Retail2) 2,799 2,490 1 Adjustment to headline sales revenue to reflect retail period end. 2 Retail period relates to the 27 week period 29 June 2015 to 3 January 2016 & the 27 week period 30 June 2014 to 4 January 2015. For personal use only Kmart 2016 Half-year Results | 16 Target Stuart Machin Managing Director For personal use only Target network as at 31 December 2015 2 1 185 Large 121 Small 33 30 21 12 18 10 57 41 49 26 5 1 For personal use only Target 2016 Half-year Results | 18 Target network Open at Open at Opened Closed 30 June 2015 31 Dec 2015 Large 183 5 (3) 185 Small 122 - (1) 121 Total 305 5 (4) 306 For personal use only Target 2016 Half-year Results | 19 Revenue reconciliation Half-year end 31 December ($m) 2015 2014 Segment revenue (Gregorian) 1,972 1,935 Less: Non sales revenue - - Headline sales (Gregorian) 1,972 1,935 Add: Gregorian adjustment1 36 42 Headline sales revenue (Retail2) 2,008 1,977 1 Adjustment to headline sales revenue to reflect retail period year end. 2 Retail period relates to the 27 week period 28 June 2015 to 2 January 2016 & the 27 week period 29 June 2014 to 3 January 2015. For personal use only Target 2016 Half-year Results | 20 Industrials Rob Scott Managing Director For personal use only Chemicals, Energy & Fertilisers - Business overview Business Geography Sector Key Customers Nickel, BHPB, Minara, AN, AGR, Ammonia WA internal Fertilisers Ammonium Dyno Nobel, Downer, Rio Tinto, WA/Global Iron ore, gold nitrate (AN) Orica, Fertilisers Ammonium (50%) Qld Coal BMA, Curragh, Rio Tinto nitrate (AN) Sodium cyanide (75%) WA/Global Gold Newmont, Barrick, AngloGold (SC) Iplex, Vinidex, Pipemakers PVC/chemicals1 Vic/Australia Construction Timber merchants, home Decking Australia/Global builders Energy Gas distributors, resources, Residential, retailing, gas engineering, residential, leisure, WA/NT transport, production & autogas, transport, power industrial distribution generation Landmark, independent Fertilisers WA Agriculture distributors (13.7%) For personal use only Oil & Gas WA Energy Alcoa, Alinta 1 PVC manufacturing will cease in the second half of FY16. Chemicals, Energy & Fertilisers 2016 Half-year Results | 22 Chemicals, Energy & Fertilisers - Sales, pricing & production Solid nitrogen sales in first half Decline in US$ ammonia pricing only partially offset kt $/t by lower A$ 1,200 2nd Half 1st Half 800 700 1,000 600 800 500 776 600 400 714 713 779 300 400 200 200 Ammonia (US$, FOB Middle East) 227 260 100 220 160 214 Ammonia (A$, FOB Middle East) 0 0 FY2012 FY2013 FY2014 FY2015 FY2016 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Saudi CP remains relatively low Modest improvement in content in 1H16 $/tonne kt t/TJ 1,400 200 0.8 1,200 150 1,000 0.7 800 100 600 0.6 400 50 200 Saudi CP US$/t (propane) Saudi CP A$/t (propane) For personal use only 0 0 0.5 Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan FY2012 FY2013 FY2014 FY2015 FY2016 06 07 08 09 10 11 12 13 14 15 H1 LPG production (kt) H2 LPG production (kt) H1 average LPG content (t/TJ) FY average LPG content (t/TJ) Chemicals, Energy & Fertilisers 2016 Half-year Results | 23 Industrial & Safety - Business overview Execution through four new business streams Blackwoods New Zealand1 Workwear Group1 Gas & Services Workwear & Maintenance, Repair & Operations, Safety Gas & Services uniforms For personal use only 1 Improvement plans for New Zealand and Workwear Group to be finalised in 2H FY16. Industrial & Safety 2016 Half-year Results | 24 Industrial & Safety - Distribution network As at 31 December 2015 458 locations with 233 branches, 169 gas distribution points & 56 Workwear franchises 1 Indonesia 117 Blackwoods 1 UAE 1 UK 49 New Zealand 4 3 1 1 30 3 59 37 Workwear Group (+ 56 franchised) 31 1 16 11 14 3 3 13 1 8 1 34 14 Coregas (+ 169 distribution points) 1 4 2 23 8 41 4 14 7 16 Greencap 49 15 1 16 6 8 10 2 5 2 For personal use only Note: Blackwoods includes Blackwoods Electrical, Bakers & Total Fasteners, Protector Alsafe, Bullivants and Fasterner & Welding Specialist locations; New Zealand includes Blackwoods Protector NZ, NZ Safety including APC Techsafe and Packaging House; Greencap includes NSCA locations & Protector Alsafe Training Service locations (previously included in Protector Alsafe); Workwear Group includes Safety Source. Industrial & Safety 2016 Half-year Results | 25 Industrial & Safety - Demand driver Private capital expenditure growth Coal, petrol & gas export price movements 100% 150.0% 70% 100.0% 40% 50.0% 10% -20% 0.0% -50% -50.0% 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015 All industries Mining Source: ABS 5625.0, Private New Capital Expenditure & Expected Source: ABS 6457.0, International trade price indexes, Australia Expenditure, Australia For personal use only Industrial & Safety 2016 Half-year Results | 26 Resources - Global environment: current & short-term trends • World blast furnace iron production trending downwards – Volatile Chinese import metallurgical coal demand – Chinese excess steel capacity being placed into global markets impacting price • Metallurgical coal market continues to be in oversupply – Australian coal suppliers slow to