Wesfarmers Limited · ASX:WES
Wesfarmers — Investor Day (November 2004)
114 slides from Wesfarmers's investor day presentation, Nov 11, 2004
Slide 1: Investor Briefing
Investor Briefing 11 November 2004 InterContinental Hotel, Sydney Investor Briefing 1
Slide 2: Wesfarmers Industrial and Safety
Wesfarmers Industrial and Safety Bob Denby Managing Director Investor Briefing 2
Slide 3: Presentation Outline
Presentation Outline • Overview of the business • Progress in 2004/05 • Strategies • Business outlook Investor Briefing 3
Slide 4: Overview of the business
Overview of the business Investor Briefing 4
Slide 5: Business Environment
Business Environment • Two market segments - Industrial Products - Maintenance Repair & Operating (MRO) - Safety Products • Wesfarmers Industrial and Safety is the market leader in highly fragmented markets WIS Estimated Market Share Industrial Safety Products Products Australia 7% 25% New Zealand 7
Slide 6: Trading Streams
Trading Streams Investor Briefing 6
Slide 7: Distribution Network
Distribution Network TRADING STYLES: Blackwoods 65 Atkins 3 DARWIN Blackwoods Atkins 21 Kunnunurra Locations Bakers 6 Motion 10 Broome CAIRNS Metals 1 TOWNSVILLE Mullings 9 PORT HEDLAND Newman MACKAY Protector Alsafe 55 KARRATHA NZ Safety (NZ) 24 Protector (
Slide 8: Progress in 2004/05
Progress in 2004/05 Investor Briefing 8
Slide 9: Progress in 2004/05
Progress in 2004/05 • July – October EBITA marginally below last year • Industrial Products experienced continued sales growth in Queensland and Western Australia with tight market conditions in NSW and Victoria • Protector Alsafe difficult trading conditions continue • Established New Zealand busin
Slide 10: Progress in 2004/05 (cont.)
Progress in 2004/05 (cont.) • Rollout of 8 new trade centres - Qld - Kawana Waters, Rockhampton, Coopers Plains - NSW - Coffs Harbour, Dubbo - SA - Edwardstown - WA - Osborne Park, Bayswater • New distribution centre - Wiri (Safety New Zealand) Investor Briefing 10
Slide 11: Strategies
Strategies • Increase sales and market share - increase e-business sales - improve brand positioning - increase sales in direct imported products - network expansion (ie trade centres) Investor Briefing 11
Slide 12: Trade Centre
Trade Centre Investor Briefing 12
Slide 13: Trade Centre
Trade Centre Investor Briefing 13
Slide 14: Trade Centre
Trade Centre Investor Briefing 14
Slide 15: Safety Shop
Safety Shop Investor Briefing 15
Slide 16: Strategies
Strategies • Reduce expense to sales ratio - optimise the distribution network - improve information system • Reduce working capital - reduce debtor days - reduce inventory • Improve safety performance Investor Briefing 16
Slide 17: Business Outlook
Business Outlook • Australia - Market conditions remain solid, with strong spending in the mining & infrastructure construction industries - Increased competition and tightening margins • New Zealand - Continued solid market conditions Investor Briefing 17
Slide 18: Chemicals and Fertilisers
Chemicals and Fertilisers Keith Gordon Managing Director Investor Briefing 18
Slide 19: CSBP Overview
CSBP Overview • Manufacturer of mining & processing chemicals - ammonia, ammonium nitrate, sodium cyanide, chlorine • Manufacturer and importer of fertilisers - phosphate, nitrogen, potassium and compounds • Manufacturing operations at: - Kwinana, Albany and Esperance (WA), Moura (Qld) • 550 employe
Slide 20: EBITA and EBITA/Capital 5 Year Trend
EBITA and EBITA/Capital 5 Year Trend EBITA EBITA/Capital $m % 100 20 18 80 16 14 60 12 10 40 8 6 20 4 2 0 0 2000 2001 2002 2003 2004 EBITA EBITA/Capital Investor Briefing 20
Slide 21: Safety
Safety Injuries R12 LTIFR 100 10 9 80 8 7 60 6 5 40 4 3 20 2 1 0 0 2002 2003 2004 Lost Time Injuries Workplace Injuries R12 LTIFR Investor Briefing 21
Slide 22: Chemicals
Chemicals Investor Briefing 22
Slide 23: Chemicals Background
Chemicals Background • Ammonia - Sole WA manufacturer (capacity 260,000 tpa) - 40,000 tonnes import / export storage terminal - Product sold to nickel industry and export markets - Significant quantity consumed internally Investor Briefing 23
Slide 24: Chemicals Background
Chemicals Background • Ammonium Nitrate - Sole WA manufacturer (capacity 235,000 tpa) - distribution for mining explosives via Dyno Nobel - Flexi-N liquid fertiliser consumes balance of production - Queensland Nitrates plant at Moura (capacity 185,000 tpa) Investor Briefing 24
Slide 25: Chemicals Background
Chemicals Background • Sodium Cyanide - Australian Gold Reagents - sole WA manufacturer - Solution plant capacity 48,000 tpa - Solid sodium cyanide plant capacity 20,000 tpa - Strong Australian market position - Developing export markets for solid product • Industrial Chemicals - Baseload production
Slide 26: Chemicals Strategies
Chemicals Strategies • Profitably build on existing businesses - examining AN production expansion opportunity - sodium cyanide debottlenecking underway - ammonia plant debottlenecking complete • Evaluate growth opportunities - exploit core competencies - expand product range in existing markets - a
Slide 27: Ammonium Nitrate Expansion
Ammonium Nitrate Expansion • Location • Feasibility study scope • Environmental approvals • Capital expenditure estimated at $140 million • Commissioning expected in 2007 • Market opportunities Investor Briefing 27
Slide 28: Chemicals Outlook
Chemicals Outlook • Generally strong resource sector conditions - Iron ore expansion in Pilbara - Coal expansion in Bowen Basin - Opportunities available in gold sector - Nickel volumes driving ammonia sales - Outlook underpins additional investment in chemical manufacturing Investor Briefing 28
Slide 29: Fertilisers
Fertilisers Investor Briefing 29
Slide 30: Fertilisers Background
Fertilisers Background • Unmatched infrastructure in WA market - volume growth readily handled • Extensive distribution network - commission based reward structure - AWB Landmark, Elders & independents - all collections ex-CSBP facilities • CSBP market support - field staff supporting distribution n
Slide 31: Fertilisers 4 Year Sales Volumes
Fertilisers 4 Year Sales Volumes million tonnes 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2001 2002 2003 2004 Western Australia Other Investor Briefing 31
Slide 32: Fertilisers Strategies
Fertilisers Strategies • Profitably build core WA business - manufacturing and supply chain opportunities - strengthen sales channel • Product and service leadership - differentiated products - optimise liquids growth - best service and technical support - competitive pricing • Develop markets beyon
Slide 33: Fertilisers Outlook
Fertilisers Outlook • Anticipate cautious start to 2005 season - 2004 harvest impacted by frost and dry finish - strong Australian dollar • Sales programme underway - Successful launch of 3 year contract - enhanced range of products and services • Continued growth in liquid fertiliser Investor Brief
Slide 34: Wesfarmers Insurance Division
Wesfarmers Insurance Division Bob Buckley Chief Executive Officer Investor Briefing 34
Slide 35: Agenda
Agenda • Wesfarmers Insurance Division overview • Description of business units • Insurance industry analysis • Achievements • Outlook Investor Briefing 35
Slide 36: Wesfarmers Insurance Division
Wesfarmers Insurance Division WESFARMERS INSURANCE DIVISION (WFI) (LGA) (LGNZ) (LTL) Wesfarmers Lumley General Lumley General Lumley Koukia Pty Ltd Federation Australia New Zealand Technology Insurance (LFL) (LFNZ) Lumley Finance Lumley Finance Australia New Zealand Investor Briefing 36
Slide 37: Lumley General Australia
Lumley General Australia • Specialised skills and products • Short tail focussed • Ranked 9 in Australian market • 2004 Gross Written Premium of $543m • Strong focus on underwriting Investor Briefing 37
Slide 38: LGA – Gross Written Premium by line of business
LGA – Gross Written Premium by line of business Gross Written Premium for 12 months to 30 June 2004 = $543m Liability Other 8% 17% Personal Lines 10% Commercial Motor Engineering 26% 13% Marine 5% Commercial 21% Investor Briefing 38
Slide 39: Lumley General New Zealand
Lumley General New Zealand • Specialised skills and products • Short tail focussed • Ranked 3 in New Zealand market • 2004 Gross Written Premium of A$235m • Strong focus on underwriting • Increasing support from intermediaries Investor Briefing 39
Slide 40: LGNZ – Gross Written Premium by line of business
LGNZ – Gross Written Premium by line of business Gross Written Premium for 12 months to 30 June 2004 = A$235m Liability 10% Other Personal Lines 8% (inc. Westpac) 27% Commercial Motor Engineering Marine 32% 5% Commercial 7% 11% Investor Briefing 40
Slide 41: WFI
WFI • Specialist niche insurer • Focused on rural and small business sectors in Australia • Ranked 14 in Australian market • Ranked 2 in rural market after IAG/CGU • 2004 Gross Written Premium of $248m Investor Briefing 41
Slide 42: WFI – Gross Written Premium by line of business
WFI – Gross Written Premium by line of business Gross Written Premium for 12 months to 30 June 2004 = $248m Commercial Motor Liability 17% 12% Marine Commercial 1% 23% Personal Lines 29% Crop Employers Liability 8% 10% Investor Briefing 42
Slide 43: Koukia
Koukia • Insurance software specialist • Wesfarmers ownership 60% • Will be deployed as WFI and LGNZ platform • Growing prospect pipeline for future sales Investor Briefing 43
Slide 44: Industry Analysis
Industry Analysis • Top 12 Insurers Gross Earned Premium $m 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 nz G C G s na E CQ p E GU h y d or QB AC RA le AI ric IN lia oy om RA /C um nc Zu Ll Al Pr G Su /L IA FI W Source : Deloitte and Trowbridge 2003 Investor Briefing 44
Slide 45: Industry Analysis
Industry Analysis (WID results include full 12 month contribution from Lumley) At 30 June 2004 IAG QBE PMN WID $m (full year) (6 months) (6 months) (full Yr) Reinsurance expense (% GEP) 6.6 21.8 10.7 37.5 Reinsurance expense (excl AMO) 6.6 21.8 10.7 32.0 NELR (%) 66.8 62.0 59.2 58.1 COR (%) 91.2 90.
Slide 46: Achievements
Achievements • Financial targets for 1st year exceeded • Implementation of Wesfarmers’ systems – Uniform risk management approach • Restructure of Lumley Technology • Formation of WID infrastructure team – Modest IT synergies achieved Investor Briefing 46
Slide 47: Achievements (cont.)
Achievements (cont.) • Reinsurance review progressing • Favourable claims outcome • WES financial targets exceeded • Cultural alignment achieved • Management programme introduced for senior executives Investor Briefing 47
Slide 48: Outlook
Outlook • Continuing favourable claims experience • Competitive environment • Some rate reductions • New Zealand growth moderating • Financial performance above target Investor Briefing 48
Slide 49: Business Development / ARG / Gresham Private Equity Fund
Business Development / ARG / Gresham Private Equity Fund Gene Tilbrook Executive Director, Business Development Investor Briefing 49
Slide 50: Outline
Outline • Australian Railroad Group • Gresham Private Equity Investor Briefing 50
Slide 51: ARG
ARG 50% Interest with Genesee and Wyoming Investor Briefing 51
Slide 52: ARG
ARG • Revenue and earnings up strongly (p.c.p. had low grain harvest) • Other tonnage growth mainly in iron ore • Rising fuel costs continue to erode earnings • Continue safety focus • Lack of train drivers Investor Briefing 52
Slide 53: ARG Outlook
ARG Outlook • Average grain season expected Investor Briefing 53
Slide 54: Grain Harvests in WA and SA
Grain Harvests in WA and SA Industry estimates at end October 25 20 T o nnes (m ilio ns) 15 10 5 0 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 Western Australia South Australia Investor Briefing 54
Slide 55: ARG Outlook
ARG Outlook • Average grain season expected • Strong minerals tonnages • Continuing safety and incident management • Ongoing capital expenditure Investor Briefing 55
Slide 56: ARG Capital Expenditure
ARG Capital Expenditure •South West line upgrade •Highest tonnage sector •$27m in 04/05 Investor Briefing 56
Slide 57: Gresham Private Equity
Gresham Private Equity Investor Briefing 57
Slide 58: Gresham Private Equity Fund 1
Gresham Private Equity Fund 1 50% Interest • No divestments to date this financial year • Current capital investment by Wesfarmers: $40m • Net Fund IRR to date running at approx. 35% pa • Five investments remain Investor Briefing 58
Slide 59: Gresham Private Equity Fund 1 Remaining Investments
Gresham Private Equity Fund 1 Remaining Investments • EROC - contract mining and tunnelling • Norcros - building materials, coatings • Riviera - luxury cruisers • Virgin Active - health clubs • Raywood - vehicle dispatch systems Investor Briefing 59
Slide 60: Gresham Private Equity Fund 2
Gresham Private Equity Fund 2 • Wesfarmers has committed $100m to Fund 2 • Further commitments from Wesfarmers of up to $50m dependent on reaching target capital of $300m - $350m • Co-investment (retail) fund has $102m commitments • Fund 2 currently has total capital of $241m (including Co- investme
Slide 61: Gresham Private Equity Fund 2 Structure
Gresham Private Equity Fund 2 Structure Co-investment (Investor Pool WES Investors for GPEF2) Fund Gresham Private Equity (Manager) (Investment GPEF2a GPEF2b GPECF Vehicles) Investee Companies Investor Briefing 61
Slide 62: Gresham Private Equity Fund 2 First Investment
Gresham Private Equity Fund 2 First Investment • Noel Leeming – NZ’s leading electrical retail business • Acquired for NZ$138.5m • Wesfarmers’ investment to date is $16m Investor Briefing 62
Slide 63: Business Development
Business Development Investor Briefing 63
Slide 64: Bunnings
Bunnings John Gillam Managing Director Investor Briefing 64
Slide 65: Investor Briefing
CAUININITN (ea warehouse
Slide 66: Agenda
Agenda 1. Background 2. 2003/04 Achievements 3. Progress in 2004/05 4. Strategies 5. Outlook Investor Briefing 66
Slide 67: Background
Background WIDEST RANGE LOWEST PRICES BEST SERVICE Investor Briefing 67
Slide 68: Current Store Network
Current Store Network Totals 2 125 Warehouses 23 9 Smaller Format 85 18 Stores 8 4 WA Salvage 18 3 40 24 18 Stores 32 7 31 as at 31 October 2004 2 1 6 excludes DC’s and Frame and Truss sites Investor Briefing 68
Slide 69: 2003/04 Achievements
2003/04 Achievements Segment Result 2003 2004 Change Revenue ($m) 3,474.5 3,845.7 10.7% EBITA ($m) 349.0 392.1 12.3% Amortisation ($m) 50.1 50.1 0.0% EBIT ($m) 298.9 342.0 14.4% EBITA/Sales Ratio 10.0% 10.2% 0.2% LTIFR 18.3 14.5 Investor Briefing 69
Slide 70: 2003/04 Achievements
2003/04 Achievements • Strong EBITA result despite slowing sales - Excellent response to New Zealand branding - Good margin performance - Tight expense control - Continued strength in Qld & WA - Improving NSW - Challenging Vic & SA Investor Briefing 70
Slide 71: 2003/04 Achievements
2003/04 Achievements • Cash store on store growth 11% - 4th quarter cash store on store growth 7% • Opened 12 warehouses - upgraded 15 other stores • Opened 2 new distribution centres • Recruited over 4,000 team members Investor Briefing 71
Slide 72: Progress in 2004/05
Progress in 2004/05 • July – October store on store cash growth 8% • Tighter trade market • 2 new warehouse openings year to date • Strong direction within business - Range, trade, new systems and supply chain Investor Briefing 72
Slide 73: Strategies
Strategies 1. Focus on retail drivers 2. Store network development 3. Trade business 4. Team members 5. Business systems 6. Business improvement Investor Briefing 73
Slide 74: Strategies - Focus on core retail drivers
Strategies 1. Focus on core retail drivers • Range - Innovation driving WIDEST RANGE • Price - Strong cost focus delivering LOWEST PRICES - Productivity loop • Service - Best people delivering BEST SERVICE Investor Briefing 74
Slide 75: Strategies
Strategies 2. Store network development • Continue 8 to 12 new warehouse openings - Additional smaller store developments • Format and development adaptability • Store upgrades and refits • Relocate low performing sites Investor Briefing 75
Slide 76: Strategies
Strategies 3. Trade business • Stronger focus, increased resources • Implementing business plan - Trade Distribution Centres • Targeting profitable market share growth Investor Briefing 76
Slide 77: Strategies
Strategies Bunnings Credit Sales vs National Housing Work Done* (Indexed to 100) 160 140 120 100 80 60 40 20 Housing Work Done Bunnings Credit Sales 0 02 03 04 2 3 4 01 2 02 3 03 -0 -0 -0 0 0 n- n- n- c- p- c- p- c- ar ar ar Ju Ju Ju De De De Se Se M M M *ABS 8752.0 (Houses Only) Investor Briefing 7
Slide 78: Strategies
Strategies 4. Team members • Attracting, developing and engaging quality people - Reduction in key operational vacancy rates • Development investment - Accelerated Management Development - Corporate “University” and e-learning systems • Continuing strong safety focus Investor Briefing 78
Slide 79: Strategies
Strategies 5. Business systems • Major systems upgrade - Preferred vendor selected - Implementation planning underway • 3 year phased program • 1st phase deliverables - New inventory management system - New distribution centre systems Investor Briefing 79
Slide 80: Strategies
Strategies 6. Business improvement • Warehouse Administration Review (W.A.R.) project • Supply chain focus - Increased resources and focus - Store deliveries working group formed ¾ Bunnings, suppliers, logistics provider ¾ Pilot programme early 2005 Investor Briefing 80
Slide 81: Outlook
Outlook • Ongoing strong consumer confidence • Competing retail demands • Declining new housing starts Investor Briefing 81
Slide 82: Outlook
Outlook Forecast Calendar Year Growth Rates Indicator 2004 2005 1. Private Consumption +6.0% +5.1% 2. Alterations and Additions +8.4% +3.9% to Dwellings 3. Housing Starts -1.0% -10.0% Sources: 1 & 2 BIS Shrapnel; 3 Housing Industry Association Investor Briefing 82
Slide 83: Outlook
Outlook Summary • Strong focus on key strategic platforms - Range, price and service • Driving costs down through business improvements • Renewed trade focus Investor Briefing 83
Slide 84: Investor Briefing
Investor Briefing 84
Slide 85: Wesfarmers Energy
Wesfarmers Energy David Robb Managing Director Investor Briefing 85
Slide 86: Wesfarmers Energy
Wesfarmers Energy Investor Briefing 86
Slide 87: Wesfarmers Energy 2004 Snapshot
Wesfarmers Energy 2004 Snapshot Coal • Production 12.8 million tonnes • Sales 12.6 million tonnes • Customers 33 • Employees 903 Gas / Power • Direct customers 235,000 • LPG Production 0.33 million tonnes • LPG Sales 0.59 million tonnes • Generation 378 Gwh • Employees 894 Investor Briefing 87
Slide 88: Safety
Safety LTIFR Kleenheat Gas WLPG 30 35 25 30 25 20 20 15 15 10 10 5 5 0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Premier Curragh 45 18 40 16 35 14 30 12 25 10 20 8 15 6 10 4 5 2 0 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 1996 1997 199
Slide 89: Strategy Summary
Strategy Summary • Premier - contracts, new markets, unit costs • Curragh - Curragh North delivery and optimisation • Bengalla - JV Alignment, mine plan, sales mix • KHG - “focus on fundamentals” III • WLPG - flexible operation • ALWA - delivering new projects Investor Briefing 89
Slide 90: Strategy Progress
Strategy Progress • Premier - mineral sands sales - shortlisted for PPP2 (300MW base load) - Western Power coal supply • Curragh - Curragh North on track - first coal March 2005 • Bengalla - alignment improved - value adding projects Investor Briefing 90
Slide 91: Strategy Progress
Strategy Progress • KHG - volumes up - margins under pressure • WLPG - post 2005 negotiations continue • ALWA - plant on schedule but HIsmelt delayed - revenue stream commenced Investor Briefing 91
Slide 92: Energy Business Environment
Energy Business Environment Gas/Power • High international LPG prices • Increased electricity sales Coal • Strong demand • Higher coking coal prices • Adverse exchange rate movement Investor Briefing 92
Slide 93: Saudi Contract Price
Saudi Contract Price US$/t 500 450 400 350 300 250 200 150 Jul Sep Dec Mar Jun Propane 2003/2004 Propane 2004/2005 Investor Briefing 93
Slide 94: Hard Coking Coal Prices
Hard Coking Coal Prices JRP US$/Tonne FOB nominal 60 55 50 45 40 35 30 83 85 87 89 91 93 95 97 99 01 03 04 Japanese Financial Year Investor Briefing 94
Slide 95: Thermal Coal Prices
Thermal Coal Prices US$/Tonne FOB nominal 70 60 50 40 30 20 10 - Jan-96 Dec-96 Nov-97 Oct-98 Sep-99 Aug-00 Jul-01 Jun-02 May-03 Apr-04 Spot Price Source: Barlow Jonker Investor Briefing 95
Slide 96: Exchange Rates
Exchange Rates $A/$US 0.9 0.8 0.7 0.6 0.5 0.4 Jan-90 Jan-92 Jan-94 Jan-96 Jan-98 Jan-00 Jan-02 Jan-04 USD/AUD exchange rate Investor Briefing 96
Slide 97: Hedging
Hedging Objective - Reduce impact of exchange rate volatility Approach - Hedge on conservative basis - 90 / 70 / 50 / 30 / 10 - Recognise contract timing - Use known outcomes where possible - Otherwise assume long run pricing Investor Briefing 97
Slide 98: Wesfarmers Curragh Hedging Profile
Wesfarmers Curragh Hedging Profile Year end Current proportion Average 30 June of USD revenue AUD/USD hedge (@ 31 October) hedged * rate 2005 87% 0.6490 2006 81% 0.6395 2007 59% 0.6539 2008 42% 0.6719 2009 17% 0.6808 2010 9% 0.6792 * Calculated using known contract outcomes, long run pricing assumpt
Slide 99: Production
Production WLPG Coal Kt Mt 400 14 12 300 10 8 200 6 4 100 2 0 0 99 00 01 02 03 04 Q1 05 99 00 01 02 03 04 Q1 05 Investor Briefing 99
Slide 100: Coal Production
Coal Production Mine Beneficial Coal Type Quarter ended Interest Sep-03 Sep-04 ('000 tonnes) Premier 100% Steam 877 882 Curragh 100% Coking 1068 1169 Steam 593 657 Bengalla 40% Steam 449 694 Investor Briefing 100
Slide 101: Energy Issues
Energy Issues • Gas - Record prices - Margin pressure, substitution risk - Export volume and shipment timing • Coal - Production and logistics performance - Cost pressures - Curragh North progress - Coal price outcomes Investor Briefing 101
Slide 102: Curragh North Mine Plan
Curragh North Mine Plan NORTH CENTRAL SOUTH CURRAGH NORTH MLA Investor Briefing 102
Slide 103: Mining at Curragh North
Mining at Curragh North • Contractor boxcut and pre-strip for first 4 to 5 years • Curragh-owned excavators and haulers to mine coal • Conveyor transport of coal to Curragh • Existing Curragh infrastructure utilised for: - Coal processing - Stockpiling - Rail load-out • Dragline relocations to CN in
Slide 104: Export Sales Growth
0 1 2 3 4 5 6 7 8 MT 1990 1991 1992 Year Ending June Investor Briefing 1993 1994 1995 1996 1997 Export Sales Growth 1998 1999 2000 Coking Coal 2001 2002 2003 2004 PCI 2005 2006 2007 2008 2009 104 2010
Slide 105: Queensland LV PCI Brands
Queensland LV PCI Brands Indicative Quality Comparison Phosphorous % (adb) 0.100 Jellinbah 0.090 South W alker Creek Coppabella Yarrabee 0.080 Blackwater Foxleigh 0.070 0.060 0.050 0.040 Curragh 0.030 0.3 0.4 0.5 0.6 0.7 So urce: Barlo w Jo nker 2004 Sulphur % (adb) Investor Briefing 105
Slide 106: World Pig Iron Production
World Pig Iron Production MT Asia 1000 Afric a/Oc eania 800 /M.East Sth Americ a 600 Nth Americ a 400 CIS 200 E. Euope 0 W . Europe 2001 2003 2005 2008 2014 Source: CRU International Investor Briefing 106
Slide 107: Seaborne Coking Coal
Seaborne Coking Coal Demand/ Supply Deficit - New Coke Oven Capacity China / India + Reduced Seaborne Coke Expansion China/Poland Australia Canada Seaborne New Zealand Mine Depletions Coking Coal Others Germany / Czech / Ukraine Deficit Resurgence US exports Strong Domestic Demand China / India Grea
Slide 108: Australian Coal Port Capacity
Australian Coal Port Capacity Mtpy 100 90 80 70 60 50 40 30 20 10 0 Abbot Ha y P oint Da lr y mple G l a d st o n e B r i sb a n e N e w c a st l e P or t P oint Bay Ke mbla 2003 Ex po rts 2006 Capac ity Source: AME Mineral Economics Investor Briefing 108
Slide 109: Metallurgical Coal
Metallurgical Coal Price Change Year–on-Year 100% 80% 60% 40% 20% 0% 1976 1980 1984 1988 1992 1996 2000 2004 -20% -40% JFY Source: CSFB Investor Briefing 109
Slide 110: Corporate Social Responsibility
Corporate Social Responsibility Keith Kessell General Manager, Public Affairs Investor Briefing 110
Slide 111: Corporate Social Responsibility
Corporate Social Responsibility • Reporting since ’98 • New title, format • Group-wide triple bottom line approach • Addressing Global Reporting Initiative criteria Investor Briefing 111
Slide 112: Corporate Social Responsibility
Corporate Social Responsibility • Why do it? - Greater transparency enhances reputation - Growing investor interest - Super funds - DJSI World membership - Inevitability of regulatory requirement Investor Briefing 112
Slide 113: Questions
Questions Investor Briefing 113
Slide 114: For all the latest news visit www.wesfarmers.com.au
For all the latest news visit www.wesfarmers.com.au Investor Briefing 114