October 2004 1

Investor BriefingMichael Chaney Richard GoyderManaging Director & CEO Deputy Managing Director

October 2004

October 2004 2

Performance Summary

Year Ended 30 June (A$m) 2003 2004 %

Operating Revenue* 7,672.9 7,706.6 0.4

Net Profit (before goodwill) 623.9 958.6 53.6

Goodwill Amortisation (85.7) (85.5) (0.2)

Net Profit (after goodwill excluding Girrah/Landmark) 481.9 569.2 18.1

Earnings Per Share (before g/will ex. Girrah/Landmark) (cents)

150.7 174.2 15.7

* Excludes revenue from the sale of Girrah (2003) and Landmark (2004)

October 2004 3

Capital Employed

Chemicals & FertilisersA$433m

Hardware/DIY A$1,824m

EnergyA$750m

Insurance A$387mIndustrial &

Safety ProductsA$768m

OtherA$780m

June 2004

October 2004 4

Corporate Objective

To provide a satisfactoryreturn to shareholders

October 2004 5

Share Price vs Earnings Per Share(pre goodwill amortisation and abnormals)

-50

0

50

100

150

200

250

300

350

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004EPS

(cents)

-5

0

5

10

15

20

25

30

35

Share Price(A$)

EPS Share Price

October 2004 6

Australian Accumulation Indices1984 – 2004

0

20,000

40,000

60,000

80,000

100,000

120,000

84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04

All Ordinaries Wesfarmers Limited

October 2004 7

EBIT - 1985

Chemicals & Fertilisers

58%

Other9.2%

Energy12.7%

Rural Services20.1%

Total EBIT A$35.9m

October 2004 8

EBIT – 2004

Insurance9.2%

Industrial & Safety9.0%

Hardware/DIY35.3%

Energy24.4%

Other13.0%

Chemicals & Fertilisers

9.0%

Total EBIT A$965m

October 2004 9

Growth Philosophy

Logical Incrementalism

October 2004 10

Corporate Strategies

1. Improve performance of existing businesses

2. Expand existing businesses

3. Portfolio management

October 2004 11

Corporate Strategies

1. Improve performance of existing businesses

2. Expand existing businesses

3. Portfolio management

October 2004 12

Integrated Shareholder-Focused Systems

• Objective Setting

• Performance Measures

• Performance Targets

• Management Accounts

• Cash Management

• Corporate Planning

• Project Evaluation

• Remuneration

October 2004 13

Performance Targets

• Group ROEA = 19% after tax

• Divisions EBITA/Capital (ROC) = 20% before tax

• Projects IRR = 10% after tax

October 2004 14

Performance Requirements

41 2 3 5

Years

<10

10-20

>20

ROC %

A

B

C

October 2004 15

Divisional ROC & Capital Employed(before goodwill amortisation)

Rolling 12 months to 30 June 2004

EBITA A$m

Capital Employed

A$m

ROC % 2003

ROC %

Hardware 392.1 1,840.0 21.3 18.0

Energy 240.2 770.9 31.2 31.9*

Industrial & Safety 112.0 814.1 13.8 14.7

Chemicals & Fertilisers 85.6 482.6 17.7 16.1

Insurance 95.8 376.9 25.4 65.8

* Excluding Girrah

October 2004 16

Return on Shareholders’ Funds(before goodwill amortisation)

Target

0

5

10

15

20

2000 2001 2002 2003* 2004**

%

* Excluding Girrah

17.618.5

15.7 15.8

18.5

** Excluding Landmark

October 2004 17

Corporate Strategies

1. Improve performance of existing businesses

2. Expand existing businesses

3. Portfolio management

October 2004 18

Wesfarmers CSBP

October 2004 19

Sales Volumes - CSBP5 Year Trend

0.0

0.3

0.6

0.9

1.2

1.5

1.8

2000 2001 2002 2003 2004

mt

Chemicals Fertilisers

October 2004 20

EBITA and EBITA/Capital- CSBP 5 Year Trend

0

20

40

60

80

100

2000 2001 2002 2003 2004

A$m

02468101214161820

%

EBITA EBITA/Capital

EBITA EBITA/Capital

October 2004 21

Wesfarmers Energy

October 2004 22

Wesfarmers Energy: Principle Business Activities

Coal• Premier: steaming coal, Western Australia• Curragh: domestic steaming coal and export coking

coal, Queensland• Bengalla: domestic and export steaming coal, New

South Wales

Gas• Kleenheat: national LPG distribution• Wesfarmers LPG: LPG export• Air Liquide: industrial gases

Statewest Power

October 2004 23

Energy - Profitable Growth Financial Performance

EBITA*

0

50

100

150

200

250

300

1999 2000 2001 2002 2003 2004

A$mEBITA/Capital

0

5

10

15

20

25

30

35

1999 2000 2001 2002 2003 2004

%

* Excludes Girrah A$80.5m in 2003

October 2004 24

Coal Type and destination, 2004(million tonnes)

ExportExportDomestic

TotalCokingSteaming

12.84.61.76.5TOTAL

2.31.70.6Bengalla*

7.14.62.5Curragh

3.43.4Premier

* Represents Wesfarmers’ 40% interest

October 2004 25

Wesfarmers Coal Sales1999 to 2006

Coal

0

2

4

6

8

10

12

14

16

1999

2000

2001

2002

2003

2004

2005

F20

06F

mt

October 2004 26

JRP US$/Tonne FOB nominal

30

35

40

45

50

55

60

83 85 87 89 91 93 95 97 99 01 03

Energy 2003/04 EnvironmentHard Coking Coal Prices

04

October 2004 27

Energy 2003/04 EnvironmentThermal Coal Prices

0

US$/Tonne FOB nominal

-

10

20

30

40

50

60

70

Spot Price

Apr-04Apr-00 Apr-01 Apr-02 Apr-03Apr- 96 Apr-97 Apr-98 Apr-99

Source: Barlow Jonker

October 2004 28

Bunnings

October 2004 29

1

32

18

84

Totals

TraditionalStores

Warehouses125

85

3

2

2

7

41

923

24

5

31

18

WA SalvageStores18

As At 30 June 2004Excludes Frame & Truss Operations

Store Network Update

October 2004 30

Bunnings Operating Revenue

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1991 1993 1995 1997 1999 2001 2003

A$m

October 2004 31

9.8%

282.3

50.0

332.3

3,375.3

2003

0.1%9.9%EBITA/Sales Ratio

15.0%324.6EBIT

0.0%50.0Amortisation

12.7%374.6EBITA*

11.7%3,771.6Revenue*

Change2004(A$m)

Full Year Result

Trading Result

*Excludes Revenue and EBITA from property and other

October 2004 32

Industrial and Safety

October 2004 33

Trading Stream Positioning

• Three markets- Maintenance repair &

operating (MRO)

- Safety

- Packaging (NZ only)

• Market leader AUS & NZ

• 500,000 SKU’s A$210m inventory

• 17 product trading departments

• 10 trading streams

October 2004 34

Distribution Network

AUCKLAND

HASTINGS

NEW PLYMOUTH

LOWER HUTT

CHRISTCHURH

DARWIN

ALICE SPRINGS

CAIRNS

TOWNSVILLE

MACKAY

ROCKHAMPTON

BRISBANE

TAMWORTH

NEWCASTLE

SYDNEY

CANBERRA

MELBOURNE

LAUNCESTON

HOBART

ADELAIDE

PERTH

BUNBURY

WOLLONGONG

ORANGE

WHYALLA

GRIFFITH

ALBURYSHEPPARTON

BENDIGO

DANDENONG

GOSFORD

DUBBO

SOUTHPORTTWEED HEADS

COFFS HARBOUR

IPSWICH

TOOWOOMBA

GYMPIE

BUNDABERG

GLADSTONE

MT. ISA

WAGGA WAGGA

MORWELL

MARYBOROUGH

LISMORE

KWINANA

KARRATHA

KALGOORLIE

BURNIE

PORT HEDLAND

BELL BAY

ROXBY DOWNS

GERALDTON

PORTLAND GEELONG

MT GAMBIER

BALLARAT

MILDURA

BROKEN HILL

SINGLETON

TRADING STYLES:Blackwoods 65Atkins 3Blackwoods Atkins 21Bakers 6Motion 10Metals 1Mullings 9Protector Alsafe 55NZ Safety 24Blackwoods (NZ) 6Protector (NZ) 22Pkg House 11 Paykel 21

TOTAL 254BRANCHES

New South Wales 38Victoria 29Queensland 38Western Australia 39South Australia 13 Tasmania 10Northern Territory 3New Zealand 84

TOTAL 254

Broome

Albany

Esperance

Newman

Kunnunurra

TAURANGA

PALMERSTON NTH

WANGEREI

GREYMOUTH

DUNEDIN

INVERCARGILL

NELSON WELLINGTON

ROTORUA

October 2004 35

Year ended 30 June (A$m) 2003 2004

Operating Revenue 1,112.0 1,150.6

EBITA 117.2 112.0

EBITA / Operating Revenue 10.5% 9.7%

EBITA / Capital 14.7% 13.8%

2004 Performance Summary

October 2004 36

Insurance

October 2004 37

Wesfarmers Insurance Division

• Wesfarmers Federation Insurance

• Lumley General (Australia)

• Lumley General (New Zealand)

• Lumley Finance

October 2004 38

Insurance EBIT

-20

0

20

40

60

80

100

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

EBIT (A$m)

October 2004 39

Australian Railroad Group

• 50% owned

• Western Australian and South Australian rail networks

- above and below rail

• Organic expansion potential

October 2004 40

Gresham Private Equity Fund 1Remaining Investments

• EROC - mining / infrastructure contractor

• Norcros - UK – based building materials,

coatings

• Riviera - cruisers

• Virgin Active - health clubs in Europe and South Africa

• Raywood - vehicle control systems

October 2004 41

Corporate Strategies

1. Improve performance of existing businesses

2. Expand existing businesses

3. Portfolio management

October 2004 42

Portfolio Management Highlights 2004

• Sale of Landmark rural

• Purchase of Lumley Insurance

• Purchase of Paykel Industrial

• Sale of Sotico timber

October 2004 43

Key Success Factors

1. Financial Focus

2. Strict Disciplines

3. Building Growth-Enabling Competencies

4. Culture

October 2004 44

0

100

200

300

400

500

600

700

86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04

A$m

Capital Expenditure & Depreciation

Capex Acquisitions Depreciation

2018

October 2004 45

Capital Expenditure Programme 2005 Budget

Total: A$451m

Industrial & Safety A$19m

Chemicals & Fertilisers

A$40m

HardwareA$124m Insurance

A$18m

OtherA$3m

EnergyA$247m

October 2004 46

Net Debt/Equity

0

20

40

60

80

2000 2001 2002 2003 2004

%

Target

78.172.6

43.8

28.2

45.5

October 2004 47

For all the latest news visitwww.wesfarmers.com.au