課件說(shuō)明案例講稿wes2014shareholder review

1、A CENTURY OF PROGRESSDelivering today. Value tomorrow.Wesfarmers | Shaolder Review 2014A CENTURY OF PROGRESSContentsAbout WesfarmersFrom its origins in 1914 as a Western Australian farmers cooperative, Wesfarmers has grown into one of Australias largest listed companies. With headquarters in Western

2、 Australia, its diversebusiness operations cover: supermarkets; department stores; home improvement and office s;coal production and export; chemicals, energy and fertilisers; and industrial and safety products.Wesfarmers is one of Australias largest employers and has a sha older base of approximate

3、ly 500,000.About this reviewThis sha older review is a summary of Wesfarmers and its subsidiary companies operations, activities and final position as at 30 June 2014. In this review references to Wesfarmers, the company, the Group, we, us and our refer to Wesfarmers Limited (ABN 28 008 984 049) unl

4、ess otherwise stated.References in this review to a year are to the final year ended 30 June 2014 unlessotherwise stated. All dollar figures are expressed in Australian dollars (AUD) unless otherwise stated.Wesfarmers is committed to reducing the environmental footprint associated with the productio

5、n of the review and the annual report and printed copies are only posted tosha olders who have elected to receive a printed copy. This review is printed onenvironmentally responsible paper manufactured under ISO 14001 environmental standards.Proud history, strong futureSteeped in a foundation of dis

6、tribution and retailing since its formation, today,Wesfarmers is one of Australias leading retailers and diversified industrial companies.Our objectiveThe primary objective of Wesfarmers is to provide a satisfactory return to our shaolders.Chairmans message2Board of directors30Managing Directors rep

7、ort4Corporate governance summary34Operating and final review8Remuneration overview41Coles20Five-year final history4721Group structure48Home Improvement and Office SKmart23Corporate directory4924TargetChemicals, Energy and Fertilisers2526Resources27Industrial and SafetyInsurance2829Other activitiesOu

8、r 2014 Sustainability Report will be available online in November 2014 at .au1C N UR OF R G E SO r commi ment o Sus a nab i yW f S t b t O2 14A CENTURY OF PROGRESSChairmans messageIn such atone year for thecompany it is very pleasing to have again delivered solid growth in revenue and earnings enabl

9、ing us to meet our long-held objective of delivering a satisfactory return to shaolders.It gives me great pleasure to introduce Wesfarmers sha older reviewfor 2014, our centenary year and the thirtiethof our publiclisting in 1984. We achieved a net profit after tax of $2,689 million for the full yea

10、r, an increase of 18.9 per cent over the previous year. Excluding non-trading items, net profit after tax increased 6.1 per cent and earnings per share (EPS) rose 6.8 per cent.The directors were able to declare a fully-franked final dividend of $1.05 per share at years end. That took the full-year d

11、ividend to $1.90 per share, up 5.6 per cent.A special Centenary dividend of $0.10 per share, fully-franked, was also declared taking the total full-year dividend to $2.00.The divestments of the Insurance division and the 40 per cent interest in Air Liquide WA (ALWA) have meant that, in addition to t

12、he special Centenary dividend, the directors have also been able to recommend further capital management through a distribution to sha olders of an additional $1.00 per share. This is subject to sha older approval at the 2014 Annual General Meeting, and a ruling from the AustralianTaxation Office. S

13、hould all conditions be met, sharlders are expected to receive their payments in December 2014.I would sincerely like to thank everyone in our teams for making this years result possible. Special thanks go to Anthony Gianotti and those in the Insurance division who continued to perform so well durin

14、g the divestment period. It is a great testament to their professionalism. We are extremely pleased that Anthony has decided to remain within the Wesfarmers Group.This years result builds on a remarkable legacy. Since listing, Wesfarmers has delivered compound annual growth in total sha older return

15、 (TSR) of 21 per cent, 89 per cent more than the rate of TSR growth achieved by the market as represented by the All Ordinaries Index.Over the past five years, Wesfarmers has delivered compound annual growth in TSR of 18 per cent, compared with TSR growth of theASX 200 of 11 per cent.2Building on ou

16、r rich historyFrom our beginnings as a farmers cooperative registered in Perth in June 1914 with a paid up capital of £2,050, we now have a market capitalisation of $50 billion and more than 500,000 sha olders.We are now Australias biggest private sector employer with more than 200,000 employee

17、s in this country, and thousands more in New Zealand and Asia.Wesfarmers has had a succession of great leaders who have developed, nurtured and pa unique culture. I am humbled by the thought that I am chairman of a company whose history has been fashioned by the contribution of many tens of thousand

18、s of people over such a long period of time.I think of the metaphor standing on the shoulders of giants.When I succeeded Trevor Eastwood, who retired in 2008 after a long and distinguished career as executive, managing director and then chairman, I became just the tenth chairman of Wesfarmers in wha

19、t is now 100 years. Richard Goyder is only our seventh CEO.I cannot think of another Australian company with that sort of record.It is a great Australian story, which merged with another greatAustralian story when we acquired the Coles group in 2007. It was a controversial decision, the story of whi

20、ch is now well told, but I would again like to thank the people involved in that acquisition and all the people who have sinceit such a remarkable success.It is a coincidence that Coles is also celebrating its centenary this year and we can all take pride in the fact that Coles is once more a thrivi

21、ng, dynamic Australian business delivering significant benefit to Australian consumers and the wider economy. Ian McLeod has moved to a new executive role in Wesfarmers,Director John Durkan, and the entire turnaround team at Coles deserve tremendous credit for the transformation they have delivered

22、in that business.and overseas has been invaluable in a period of great change for the company.Their individual and collectivecontributions to thhavebeen enormous and I thank them wholeheartedly.Safety and sustainabilityThe founders of Wesfarmers were driven by the ambition for sustainable success. I

23、n that sense, nothing has changed, although the world and commu expectations, of course, have.In recent years, we have had a relentless focus on making our workplaces safer. It is pleasing to report that this year we have seen improvement in our total recordable injury frequency rate across all of o

24、ur divisions.Our drive to lessen our impact on the environment also remains a key part of our decision-making. Our carbon emissions intensity improved further in 2014 and we continue to focus on decreasing our waste to landfill.OutlookThe Wesfarmers story is unrivalled in Australia. The companyhas d

25、emonstrated incredible adaptability and resilience over the century of its existence and has developed a very strong culture which, I believe, will continueto serve our sha olders well into the future. The company has prospered during periods of massive international upheaval,dramatic domestic polic

26、y shifts and rapid societal and technological change. Its all been possible because of the skills and attributes of our people.Under the outstanding leadership of Richard Goyder and his management team, I believe Wesfarmers is well-placed to meet the inevitable challenges that will confront us in th

27、e years ahead.Wesfarmers exists for your benefitThI would like to thank my Board colleagues for their hard work and support throughout the year.We had no changes to th during the 2014 final year.Their varied skills, experience and perspectives is complemented by a truly collaborative and cooperative

28、 approach. I can faithfully report thatand wefor your ongoingsupport of this great company.thmembers are serving thesha olders well.Bob Every AO, ChairmanThis year, two of our longest serving board members, Charles Macek and Colin Carter, will retire. Charles joined thin 2001 and his long career in

29、final services, working at a senior executive level, meant he brought considerable experience in evaluating and advising on investment opportunities to thecompany. Colin joined thin2002 and his extensive experienceadvising on corporate strategy and corporate governance in Australiabut he, theaging3A

30、 CENTURY OF PROGRESSManaging Directors reportWe will be patient and disciplined in any portfolio activities, makingdecisions based on what we feel is the right thing to do by our owners our shaolders. We will also continueto invest in our human resource capabilities and look at things with a long-te

31、rm perspective.4.2Your company performed well in 2014, our centenary year, reporting a good increase in Group profit to $2,689 million.That was driven by strong performances in Coles and Bunnings, portfolio management activities, and a reduction in interest costs which more than offset reduced contr

32、ibutions from our industrial businesses and Target.Operating revenue increased 4.2 per cent to $62.3 billion and earnings before interest and tax (EBIT or earnings) from continuing and discontinued operations were up 13.4 per cent to $4,150 million. Earnings per share of $2.35 was up 19.8 per cent o

33、n the prior year, and return on equity (ROE) was 10.5 per cent.The profits recorded on the divestments of our Insurance businesses and ALWA collectively contributed $1,034 million to post-tax profit, more than offsetting the revision of Targets carrying value and the provisionfor the future restruct

34、uring of Coles Liquor business, giving a net post-tax profit contribution from non-trading items (NTIs) of $291 million.The directors declared a special Centenary dividend and capital management distribution as outlined in the Chairmans message. The directors believe the special dividend, together w

35、ith the proposed capital management, represents the most equitablemethod of distributing available franking credits and surplus capital to sha olders. The Groups strong balance sheet, robust credit metrics and good cash flow generation allows us to return this money to our sha olders without adverse

36、ly affecting the Groups final flexibility.This years result builds on our legacy, which since listing has seen Wesfarmers meet its objective of providing our sha olders with sustainable satisfactory returns.%Group revenue up 4.2 per cent to $62.3 billionSolid increase in underlying profitsEarnings p

37、er share of $2.354Business performanceIn 2014, our operating revenue grew 4.2 per cent to $62.3 billion and our net profit after tax increased18.9 per cent to $2,689 million.Year ended 30 June201420131Revenue from continuing operations$m60,18157,749Earnings before interest, tax, depreciation and amo

38、rtisation from continuing operations$m3,9724,486Depreciation and amortisation from continuing operations$m1,0821,033Earnings before interest and tax from continuing operations$m2,8903,453Finance costs and income tax expense from continuing operations$m1,2851,325Profit after tax from discontinued ope

39、rations$m1,084133Net profit after tax2,689$m2,261Operating cash flows$m3,2263,931Net capital expenditure on property, plant and equipment and intangibles$m1,2161,672cash flows$m4,1782,171Dividends paid$m2,1601,985Total assets$m39,72743,155Net debt$m3,4015,259Sha olders' equity$m25,98726,022Key s

40、hare dataEarnings per sharecents234.6195.9Operating cash flow per sharecents281.0339.7cash flow per sharecents363.9187.6Total dividends per share (declared)cents200.0180.0Capital return per sharecents50.0Key ratiosReturn oage sha olders equity (R12)%10.58.9Fixed charges cover (R12)times3.23.0Interes

41、t cover (R12) (cash basis)times15.912.2Gearing (net debt to equity)%13.120.22013 numbers have been restated to reflect the classification of the Insurance division as a discontinued operation.1Wealth created by Wesfarmers201413,842 $m201312,910 $mEmployees salaries, wages and other benetsGovernment

42、tax and royaltiesLenders nance costs related to borrowed fundsSha olders dividends on their investmentsReinvested in the business%5659141233161611105A CENTURY OF PROGRESSManaging Directors reportRetail operationsColesInsurance and Industrial businesses20142013Chemicals, Energy and Fertilisers2014201

43、3Revenue$m37,39135,780Revenue$m1,8121,805Earnings before interest and tax$m1,6721,533Earnings before interest and tax$m221249Segment assets1,746Segment assets$m20,53220,367$m1,675Segment liabilities$m3,9744,145Segment liabilities$m355303Capital employed$m16,27216,114Capital employed$m1,5391,400Retur

44、n on capital employed (R12)%10.39.5Return on capital employed (R12)%14.417.8Home Improvement and Office SResources2014201320142013Revenue$m1,5441,539Revenue$m10,1219,167Earnings before interest and tax$m130148Earnings before interest and tax$m1,082997Segment assets$m1,9041,920Segment assets5,706$m5,

45、888Segment liabilities$m384420Segment liabilities$m1,177957Capital employed$m1,4591,480Home ImprovementReturn on capital employed (R12)%8.910.0Capital employed$m3,3433,492Industrial and Safety20142013Return on capital employed29.3%25.9Revenue$m1,6211,647Office SEarnings before interest and tax$m1311

46、65Capital employed$m1,0971,147Segment assets$m1,3491,292Return on capital employed (R12)%9.48.1Segment liabilities$m273281Capital employed$m1,1271,119Kmart20142013Return on capital employed (R12)%11.614.7Revenue$m4,2094,167Earnings before interest and tax$m366344Insurance20142013Segment assets$m2,13

47、12,145Revenue$m2,1672,083Segment liabilities$m692750Earnings before interest and tax$m220205Capital employed$m1,3611,329Segment assets$m4,440Return on capital employed (R12)%26.925.9Segment liabilities$m2,869Capital employed$m1,4971,396Target20142013Return on capital employed (R12) %14.714.7Revenue$

48、m3,5013,658Earnings before interest and tax$m86136Segment assets$m2,9633,561Segment liabilities$m486464Capital employed$m2,9792,930Return on capital employed (R12) %2.94.6Divisional performanceColesColes delivered another good result, with sales growth accelerating in the final quarter. Increased sa

49、les and customer tranions were driven by improvements in fresh produce participation, product innovation and brand reach.Strong earnings growth in Food and Liquor reflected Coles continued commitment to reinvestingproductivity improvements from store operations and the supply chain in customer value

50、, product quality and in-store services.This was partially offset by a reduced contribution from the Convenience business, largelyas a result of significantly reduced fuel volumes sold following the undertaking to the Australian Competition and Consumer Commission (ACCC) regarding the capof fuel dis

51、counts.Home Improvement and Office SBunnings continued its record of strong final performance, underpinned by further improvements in the customerexperience, range innovation and the strengthening of the store network and property pipeline.Bunnings increased sales and further productivity improvemen

52、ts offset increased investment in value provided to customers, higher network development costs and6higher lease expenses incurred post the sale and leaseback ofhold property.Sound execution of Officeworks every channel strategy, category innovation and working capital improvements saw earnings and

53、return on capital improve strongly during the year.Department store retailing Kmarts performance showed solid improvement, underpinnedby a strong increase in customertranions and units sold. Targets result reflected a number of operational and strategic changeswhich affected earnings during the year

54、, but which are expected to benefit earnings in subsequent years.Kmart continued to enhance its store network through therefurbishment of 16 stores during the year, with the lowest prices for families mantra being driven through its stores.Targets earnings were affected by high levels of clearance a

55、ctivity, and a pricing reset consistent with its progression towards a first price, right price strategy.We have a new and very capable management team at Target who will lead further significant change as it progresses its transformation.IndustrialA very challenging external environment continued to affect the performance of the Groups industrial divisions.A highlight of the year