Investor Briefing 1
Investor Briefing
11 November 2004InterContinental Hotel, Sydney
Investor Briefing 2
Wesfarmers Industrial and Safety
Bob DenbyManaging Director
Investor Briefing 3
Presentation Outline
• Overview of the business
• Progress in 2004/05
• Strategies
• Business outlook
Investor Briefing 4
Overview of the business
Investor Briefing 5
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
IndustrialProducts
SafetyProducts
Australia 7% 25%New Zealand 7% 45%
WIS Estimated Market Share
Investor Briefing 6
Trading Streams
Investor Briefing 7
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 (NZ) 24Protector (NZ) 22Packaging House (NZ) 11Blackwood Paykels (NZ) 27
TOTAL 254
BRANCHESNSW 38VIC 29QLD 38WA 39SA 13 TAS 10NT 3NZ 84
TOTAL 254
Broome
Albany
Esperance
Newman
Kunnunurra
TAURANGA
PALMERSTON NTH
WANGEREI
GREYMOUTH
DUNEDIN
INVERCARGILL
NELSON WELLINGTON
ROTORUA
Locations
Investor Briefing 8
Progress in 2004/05
Investor Briefing 9
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 businesses performed well
- Blackwood Paykels below expectations
• Competitive pressure continues on trading margins
Investor Briefing 10
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 11
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 12
Trade Centre
Investor Briefing 13
Trade Centre
Investor Briefing 14
Trade Centre
Investor Briefing 15
Safety Shop
Investor Briefing 16
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 17
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 18
Chemicals and Fertilisers
Keith Gordon Managing Director
Investor Briefing 19
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 employees
• Post 1999, around 60% of EBITA generated from chemicals
activities
Investor Briefing 20
EBITA and EBITA/Capital 5 Year Trend
0
20
40
60
80
100
2000 2001 2002 2003 2004
$m
02468101214161820
%
EBITA EBITA/Capital
EBITA EBITA/Capital
Investor Briefing 21
Safety
0
20
40
60
80
100
2002 2003 2004012345678910
Lost Time Injuries Workplace Injuries R12 LTIFR
Injuries R12 LTIFR
Investor Briefing 22
Chemicals
Investor Briefing 23
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 24
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 25
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 of chlorine for WA Water Corporation
- Traded products
Investor Briefing 26
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
- assess opportunities in new markets
Investor Briefing 27
Ammonium Nitrate Expansion
• Location
• Feasibility study scope
• Environmental approvals
• Capital expenditure estimated at $140 million
• Commissioning expected in 2007
• Market opportunities
Investor Briefing 28
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 29
Fertilisers
Investor Briefing 30
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 network and account
managing key customers
- agronomic advisory services, product development, soil and plant testing services.
Investor Briefing 31
Fertilisers 4 Year Sales Volumes
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2001 2002 2003 2004
million tonnes
Western Australia Other
Investor Briefing 32
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 beyond WA for proprietary products
Investor Briefing 33
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 Briefing 34
Wesfarmers Insurance Division
Bob Buckley Chief Executive Officer
Investor Briefing 35
Agenda
• Wesfarmers Insurance Division overview
• Description of business units
• Insurance industry analysis
• Achievements
• Outlook
Investor Briefing 36
Wesfarmers Insurance Division
WESFARMERS INSURANCE DIVISION
(LGA)Lumley General
Australia
(LGNZ)Lumley GeneralNew Zealand
Koukia Pty Ltd(LTL)
LumleyTechnology
(WFI)WesfarmersFederationInsurance
(LFL)Lumley Finance
Australia
(LFNZ)Lumley FinanceNew Zealand
Investor Briefing 37
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 38
LGA – Gross Written Premium by line of business
Gross Written Premium for 12 months to 30 June 2004 = $543m
Other17%
Personal Lines10%
Commercial Motor
26%
Liability8%
Marine5% Commercial
21%
Engineering13%
Investor Briefing 39
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 40
LGNZ – Gross Written Premiumby line of business
Gross Written Premium for 12 months to 30 June 2004 = A$235m
Other8%Personal Lines
(inc. Westpac)27%
Commercial Motor32%
Liability10%
Marine7% Commercial
11%
Engineering5%
Investor Briefing 41
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 42
WFI – Gross Written Premium by line of business
Gross Written Premium for 12 months to 30 June 2004 = $248m
Marine1%
Liability12%
Commercial Motor17%
Commercial23%
Employers Liability10%
Crop8%
Personal Lines29%
Investor Briefing 43
Koukia
• Insurance software specialist
• Wesfarmers ownership 60%
• Will be deployed as WFI and LGNZ platform
• Growing prospect pipeline for future sales
Investor Briefing 44
Gross Earned Premium
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
IAG/C
GUSu
ncor
pPr
omna
Allia
nz
QBEZu
rich
Lloyd
sW
FI/Lu
mley ING AIG
ACE
RACQ RA
C
$m
Source : Deloitte and Trowbridge 2003
Industry Analysis
• Top 12 Insurers
Investor Briefing 45
Industry Analysis(WID results include full 12 month contribution from Lumley)
90.8
62.0
21.8
21.8
QBE (6 months)
91.2
66.8
6.6
6.6
IAG (full year)
93.5
59.2
10.7
10.7
PMN (6 months)
58.1NELR (%)
32.0Reinsurance expense (excl AMO)
87.0COR (%)
37.5
WID (full Yr)
Reinsurance expense (% GEP)
At 30 June 2004 $m
Investor Briefing 46
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 47
Achievements (cont.)
• Reinsurance review progressing
• Favourable claims outcome
• WES financial targets exceeded
• Cultural alignment achieved
• Management programme introduced for senior
executives
Investor Briefing 48
Outlook
• Continuing favourable claims experience
• Competitive environment
• Some rate reductions
• New Zealand growth moderating
• Financial performance above target
Investor Briefing 49
Business Development / ARG /Gresham Private Equity Fund
Gene Tilbrook Executive Director, Business Development
Investor Briefing 50
Outline
• Australian Railroad Group
• Gresham Private Equity
Investor Briefing 51
ARG50% Interest with Genesee and Wyoming
Investor Briefing 52
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 53
ARG Outlook
• Average grain season expected
Investor Briefing 54
Grain Harvests in WA and SA
0
5
10
15
20
25
94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05
To
nn
es
(m
ilio
ns
)
Western Australia South Australia
Industry estimates at end October
Investor Briefing 55
ARG Outlook
• Average grain season expected
• Strong minerals tonnages
• Continuing safety and incident management
• Ongoing capital expenditure
Investor Briefing 56
ARG Capital Expenditure
•South West line upgrade
•Highest tonnage sector
•$27m in 04/05
Investor Briefing 57
Gresham Private Equity
Investor Briefing 58
Gresham Private Equity Fund 150% 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 59
Gresham Private Equity Fund 1Remaining Investments
• EROC - contract mining and tunnelling
• Norcros - building materials, coatings
• Riviera - luxury cruisers
• Virgin Active - health clubs
• Raywood - vehicle dispatch systems
Investor Briefing 60
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-
investment Fund)
• GPEF2 and GPECF participate pro rata in all investments
Investor Briefing 61
Gresham Private Equity Fund 2 Structure
Investee Companies
GPECFGPEF2a
Co-investmentFundInvestorsWES
GPEF2b
Gresham Private Equity
(Investor Pool for GPEF2)
(Manager)
(Investment Vehicles)
Investor Briefing 62
Gresham Private Equity Fund 2First Investment
• Noel Leeming – NZ’s leading electrical retail business
• Acquired for NZ$138.5m
• Wesfarmers’ investment to date is $16m
Investor Briefing 63
Business Development
Investor Briefing 64
Bunnings
John Gillam Managing Director
Investor Briefing 65
Investor Briefing 66
Agenda
1. Background
2. 2003/04 Achievements
3. Progress in 2004/05
4. Strategies
5. Outlook
Investor Briefing 67
BackgroundBackground
WIDEST RANGELOWEST PRICESBEST SERVICE
Investor Briefing 68
1
32
18
84
Totals
Smaller FormatStores
Warehouses125
85
3
2
2
7
40
923
24
631
18WA SalvageStores18
as at 31 October 2004excludes DC’s and Frame and Truss sites
Current Store Network
Investor Briefing 69
0.2%10.2%10.0%EBITA/Sales Ratio
18.3
298.9
50.1
349.0
3,474.5
2003
14.5LTIFR
14.4%342.0EBIT ($m)
0.0%50.1Amortisation ($m)
12.3%392.1EBITA ($m)
10.7%3,845.7Revenue ($m)
Change2004
2003/04 Achievements
Segment Result
Investor Briefing 70
• 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
2003/04 Achievements
Investor Briefing 71
• 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
2003/04 Achievements
Investor Briefing 72
• 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
Progress in 2004/05
Investor Briefing 73
Strategies
1. Focus on retail drivers
2. Store network development
3. Trade business
4. Team members
5. Business systems
6. Business improvement
Investor Briefing 74
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
Strategies
Investor Briefing 75
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
Strategies
Investor Briefing 76
3. Trade business
• Stronger focus, increased resources
• Implementing business plan
- Trade Distribution Centres
• Targeting profitable market share growth
Strategies
Investor Briefing 77
Strategies
020406080
100120140160
Dec-01
Mar-02
Jun-02
Sep-02
Dec-02
Mar-03
Jun-03
Sep-03
Dec-03
Mar-04
Jun-04
Housing Work Done Bunnings Credit Sales
Bunnings Credit Sales vs National Housing Work Done* (Indexed to 100)
*ABS 8752.0 (Houses Only)
Investor Briefing 78
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
Strategies
Investor Briefing 79
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
Strategies
Investor Briefing 80
6. Business improvement
• Warehouse Administration Review (W.A.R.) project
• Supply chain focus
- Increased resources and focus
- Store deliveries working group formed
Bunnings, suppliers, logistics provider
Pilot programme early 2005
Strategies
Investor Briefing 81
• Ongoing strong consumer confidence
• Competing retail demands
• Declining new housing starts
Outlook
Investor Briefing 82
Outlook
-10.0%-1.0%3. Housing Starts
+3.9%+8.4%2. Alterations and Additions to Dwellings
+5.1%+6.0%1. Private Consumption
20052004Indicator
Sources: 1 & 2 BIS Shrapnel; 3 Housing Industry Association
Forecast Calendar Year Growth Rates
Investor Briefing 83
Summary
• Strong focus on key strategic platforms
- Range, price and service
• Driving costs down through business improvements
• Renewed trade focus
Outlook
Investor Briefing 84
Investor Briefing 85
Wesfarmers Energy
David RobbManaging Director
Investor Briefing 86
Wesfarmers Energy
Investor Briefing 87
Wesfarmers Energy2004 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 88
Safety LTIFR
0
5
10
15
20
25
30
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Kleenheat Gas
0
5
10
15
20
25
30
35
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
WLPG
0
5
10
15
20
25
30
35
40
45
1996 1997 1998 1999 2000 2001 2002 2003 2004
0
2
4
6
8
10
12
14
16
18
1996 1997 1998 1999 2000 2001 2002 2003 2004
Premier Curragh
Investor Briefing 89
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 90
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 91
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 92
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 93
Saudi Contract Price
150
200
250
300
350
400
450
500US$/t
Propane 2003/2004 Propane 2004/2005JunJul DecSep Mar
Investor Briefing 94
Hard Coking Coal Prices
JRP US$/Tonne FOB nominal
Japanese Financial Year
30
35
40
45
50
55
60
83 85 87 89 91 93 95 97 99 01 03 04
Investor Briefing 95
Thermal Coal Prices
Source: Barlow Jonker
US$/Tonne FOB nominal
Spot Price
-
10
20
30
40
50
60
70
Jan-96 Dec-96 Nov-97 Oct-98 Sep-99 Aug-00 Jul-01 Jun-02 May-03 Apr-04
Investor Briefing 96
$A/$US
0.4
0.5
0.6
0.7
0.8
0.9
Jan-90 Jan-92 Jan-94 Jan-96 Jan-98 Jan-00 Jan-02 Jan-04
Exchange Rates
USD/AUD exchange rate
Investor Briefing 97
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 98
Wesfarmers Curragh Hedging Profile
Year end 30 June
(@ 31 October)
Current proportion of USD revenue
hedged *
Average AUD/USD hedge
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 assumptions, and after adjusting for USD capital and operational expenditure and USD royalty payments.
Investor Briefing 99
Production
MtCoal
Kt
WLPG
99 00 01 02 03 04 99 00 01 02 03 04 Q1 05
0
100
200
300
400
Q1 05
0
2
4
6
8
10
12
14
Investor Briefing 100
Coal Production
Premier 100% Steam 877 882
Curragh 100% Coking 1068 1169
Steam 593 657
Bengalla 40% Steam 449 694
Quarter ended Sep-03 Sep-04
Mine Beneficial Interest
Coal Type
('000 tonnes)
Investor Briefing 101
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 102
SOUTH
NORTH
CENTRAL
CU
RR
AG
H N
OR
TH M
LA
Curragh NorthMine Plan
Investor Briefing 103
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 2006 and 2007
Investor Briefing 104
Export Sales Growth
0
1
2
3
4
5
6
7
8
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Coking Coal PCI
MT
Year Ending June
Investor Briefing 105
Queensland LV PCI BrandsIndicative Quality Comparison
0.030
0.040
0.050
0.060
0.070
0.080
0.090
0.100
0.3 0.4 0.5 0.6 0.7
Sulphur % (adb)
Phosphorous % (adb)
Yarrabee
Jellinbah
Blackwater Foxleigh
South Walker Creek Coppabella
Curragh
Source: Barlow Jonker 2004
Investor Briefing 106
World Pig Iron Production
0
200
400
600
800
1000
2001 2003 2005 2008 2014
Asia
Africa/Oceania/M.EastSth America
Nth America
CIS
E. Euope
W. Europe
MT
Source: CRU International
Investor Briefing 107
Seaborne Coking CoalDemand/ Supply Deficit
SeaborneCoking Coal
DeficitMine Depletions
Germany / Czech / Ukraine
Strong Domestic DemandChina / India
New Coke Oven CapacityChina / India
ExpansionAustraliaCanada
New ZealandOthers
Reduced Seaborne CokeChina/Poland
Greater HCC requirement
+-
ResurgenceUS exports
Investor Briefing 108
Australian Coal Port Capacity
0102030405060708090
100
A b b o tP o i n t
H a y P o i n t D a l r y m p l eB a y
Gl a d st o n e B r i sb a n e N e wc a st l e P o r tK e m b l a
Mtpy
2003 Exports 2006 Capac ity
Source: AME Mineral Economics
Investor Briefing 109
Metallurgical CoalPrice Change Year–on-Year
-40%
-20%
0%
20%
40%
60%
80%
100%
1976 1980 1984 1988 1992 1996 2000 2004
JFY
Source: CSFB
Investor Briefing 110
Corporate Social Responsibility
Keith KessellGeneral Manager, Public Affairs
Investor Briefing 111
Corporate Social Responsibility
• Reporting since ’98
• New title, format
• Group-wide triple bottom
line approach
• Addressing Global Reporting
Initiative criteria
Investor Briefing 112
Corporate Social Responsibility
• Why do it?
- Greater transparency enhances reputation
- Growing investor interest
- Super funds
- DJSI World membership
- Inevitability of regulatory requirement
Investor Briefing 113
Questions
Investor Briefing 114
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