Wesfarmers Annual Report 2018
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About This Document
This annual report provides a summary of Wesfarmers and its subsidiary companies’ operations, activities and financial performance and position as at 30 June 2018. It includes information on the primary objective, group structure, performance overview, operating and financial review, sustainability, governance, and financial statements.
Wesfarmers Annual Report 2018
Prepare an annual report for a fictitious company based on a provided case study and trial balance.
Added on 2023-01-17
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WESFARMERS
ANNUAL REPORT
2018
ANNUAL REPORT
2018
CONTENTS
Governance
66 Board of directors
68 Corporate governance overview
Directors’ report
72 Directors’ report
77 – Remuneration report
Financial statements
97 Financial statements
103 Notes to the financial statements
Signed reports
145 Directors’ declaration
146 Independent auditor’s report
Shareholder and ASX information
152 Shareholder information
153 Investor information
154 Five-year financial history
155 Corporate directory
156 Wesfarmers brands
Overview
2 2018 year in review
4 Primary objective
5 Group structure
6 Performance overview
8 Chairman’s message
10 Managing Director’s report
12 Leadership Team
Operating and financial review
14 Operating and financial review
26 Retail businesses
26 Bunnings
32 Coles
40 Department Stores
42 – Kmart
44 – Target
46 Officeworks
50 Industrials
52 – Chemicals, Energy and Fertilisers
54 – Industrial and Safety
56 – Resources
57 Other activities
Sustainability
58 Sustainability
Wesfarmers 2018 Annual Report 1About Wesfarmers
From its origins in 1914 as a Western
Australian farmers’ cooperative,
Wesfarmers has grown into one of
Australia’s largest listed companies.
With headquarters in Perth, its
diverse business operations
cover: supermarkets, liquor, hotels
and convenience stores; home
improvement; department stores;
office supplies; and an Industrials
division with businesses in chemicals,
energy and fertilisers, industrial and
safety products and coal. Wesfarmers
is Australia’s largest private sector
employer with approximately 217,000
employees (including more than 5,200
Indigenous team members) and is
owned by approximately 495,000
shareholders.
About this report
This annual report is a summary
of Wesfarmers and its subsidiary
companies’ operations, activities and
financial performance and position
as at 30 June 2018. In this report
references to ‘Wesfarmers’, ‘the
company’, ‘the Group’, ‘we’, ‘us’
and ‘our’ refer to Wesfarmers Limited
(ABN 28 008 984 049), unless
otherwise stated.
References in this report to a ‘year’
are to the financial year ended
30 June 2018 unless otherwise
stated. All dollar figures are expressed
in Australian dollars (AUD) unless
otherwise stated.
All references to ‘Indigenous’ people
are intended to include Aboriginal and/
or Torres Strait Islander people.
Wesfarmers is committed to reducing
the environmental footprint associated
with the production of this annual
report and printed copies are only
posted to shareholders who have
elected to receive a printed copy. This
report is printed on environmentally
responsible paper manufactured under
ISO 14001 environmental standards.
Governance
66 Board of directors
68 Corporate governance overview
Directors’ report
72 Directors’ report
77 – Remuneration report
Financial statements
97 Financial statements
103 Notes to the financial statements
Signed reports
145 Directors’ declaration
146 Independent auditor’s report
Shareholder and ASX information
152 Shareholder information
153 Investor information
154 Five-year financial history
155 Corporate directory
156 Wesfarmers brands
Overview
2 2018 year in review
4 Primary objective
5 Group structure
6 Performance overview
8 Chairman’s message
10 Managing Director’s report
12 Leadership Team
Operating and financial review
14 Operating and financial review
26 Retail businesses
26 Bunnings
32 Coles
40 Department Stores
42 – Kmart
44 – Target
46 Officeworks
50 Industrials
52 – Chemicals, Energy and Fertilisers
54 – Industrial and Safety
56 – Resources
57 Other activities
Sustainability
58 Sustainability
Wesfarmers 2018 Annual Report 1About Wesfarmers
From its origins in 1914 as a Western
Australian farmers’ cooperative,
Wesfarmers has grown into one of
Australia’s largest listed companies.
With headquarters in Perth, its
diverse business operations
cover: supermarkets, liquor, hotels
and convenience stores; home
improvement; department stores;
office supplies; and an Industrials
division with businesses in chemicals,
energy and fertilisers, industrial and
safety products and coal. Wesfarmers
is Australia’s largest private sector
employer with approximately 217,000
employees (including more than 5,200
Indigenous team members) and is
owned by approximately 495,000
shareholders.
About this report
This annual report is a summary
of Wesfarmers and its subsidiary
companies’ operations, activities and
financial performance and position
as at 30 June 2018. In this report
references to ‘Wesfarmers’, ‘the
company’, ‘the Group’, ‘we’, ‘us’
and ‘our’ refer to Wesfarmers Limited
(ABN 28 008 984 049), unless
otherwise stated.
References in this report to a ‘year’
are to the financial year ended
30 June 2018 unless otherwise
stated. All dollar figures are expressed
in Australian dollars (AUD) unless
otherwise stated.
All references to ‘Indigenous’ people
are intended to include Aboriginal and/
or Torres Strait Islander people.
Wesfarmers is committed to reducing
the environmental footprint associated
with the production of this annual
report and printed copies are only
posted to shareholders who have
elected to receive a printed copy. This
report is printed on environmentally
responsible paper manufactured under
ISO 14001 environmental standards.
Department
Stores
Record earnings
delivered for the
year
Coles
Customer metrics,
sales momentum
and earnings
performance
improved over
the year
Industrials
Increased earnings
from continuing
operations
Officeworks
Continued
growth through a
relentless focus on
price, range and
service
Bunnings
Continued growth in
earnings and sales delivered
through strong execution of
customer-focused strategy
Sustainability
Improvements in
safety, emissions
intensity, ethical
sourcing and
community
contributions
40
50
32
46
58
26
Wesfarmers 2018 Annual Report 3$148M
COMMUNITY
CONTRIBUTIONS
$9.3B
SALARIES AND
WAGES
217K
LARGEST PRIVATE
SECTOR EMPLOYER
$2.23
DIVIDENDS
PER SHARE
$47.2B$2.1B
PAYMENTS TO
SUPPLIERS
GOVERNMENT TAXES
AND ROYALTIES
DEMERGER OF
COLES PROPOSED ROB SCOTT BECAME
WESFARMERS’ EIGHTH
MANAGING DIRECTOR
DIVESTED CURRAGH
COAL MINE AND
HOMEBASE
2018 YEAR
IN REVIEW
TEAM MEMBERS
Wesfarmers 2018 Annual Report2The 2018 financial year was one of significant change for Wesfarmers,
with decisive actions taken to reposition the Group’s portfolio to deliver
sustainable growth in earnings and improved shareholder returns.
Sustainability Signed
reports
Shareholder and
ASX information
Financial
statements
Directors’
report
Governance
Operating and
financial review
Overview
1 The 2018 earnings before interest and tax for Department Stores excludes Target’s pre-tax non-cash impairment of $306 million.
Coles 2018 2017
Revenue $m 39,388 39,217
Earnings before interest and tax $m 1,500 1,609
Segment assets $m 21,180 21,140
Segment liabilities $m 4,561 4,245
Capital employed (R12) $m 16,386 16,586
Return on capital employed (R12) % 9.2 9.7
Capital expenditure $m 762 811
Industrials (including Curragh mine) 2018 2017
Revenue $m 5,269 5,161
Earnings before interest and tax $m 867 915
Segment assets $m 3,500 4,229
Segment liabilities $m 758 1,125
Capital employed (R12) $m 3,295 3,393
Return on capital employed (R12) % 26.3 27.0
Capital expenditure $m 167 169
Officeworks 2018 2017
Revenue $m 2,142 1,964
Earnings before interest and tax $m 156 144
Segment assets $m 1,452 1,401
Segment liabilities $m 532 488
Capital employed (R12) $m 939 980
Return on capital employed (R12) % 16.6 14.7
Capital expenditure $m 45 36
Department Stores 20181 2017
Revenue $m 8,837 8,528
Earnings before interest and tax $m 660 543
Segment assets $m 3,617 3,928
Segment liabilities $m 1,482 1,423
Capital employed (R12) $m 2,013 2,253
Return on capital employed (R12) % 32.8 24.1
Capital expenditure $m 293 222
Bunnings 2018 2017
Revenue $m 12,544 11,514
Earnings before interest and tax $m 1,504 1,334
Segment assets $m 5,025 4,846
Segment liabilities $m 1,875 1,785
Capital employed (R12) $m 3,045 3,192
Return on capital employed (R12) % 49.4 41.8
Capital expenditure $m 497 367
Divisional performance
Wesfarmers 2018 Annual Report 7
BACK
Stores
Record earnings
delivered for the
year
Coles
Customer metrics,
sales momentum
and earnings
performance
improved over
the year
Industrials
Increased earnings
from continuing
operations
Officeworks
Continued
growth through a
relentless focus on
price, range and
service
Bunnings
Continued growth in
earnings and sales delivered
through strong execution of
customer-focused strategy
Sustainability
Improvements in
safety, emissions
intensity, ethical
sourcing and
community
contributions
40
50
32
46
58
26
Wesfarmers 2018 Annual Report 3$148M
COMMUNITY
CONTRIBUTIONS
$9.3B
SALARIES AND
WAGES
217K
LARGEST PRIVATE
SECTOR EMPLOYER
$2.23
DIVIDENDS
PER SHARE
$47.2B$2.1B
PAYMENTS TO
SUPPLIERS
GOVERNMENT TAXES
AND ROYALTIES
DEMERGER OF
COLES PROPOSED ROB SCOTT BECAME
WESFARMERS’ EIGHTH
MANAGING DIRECTOR
DIVESTED CURRAGH
COAL MINE AND
HOMEBASE
2018 YEAR
IN REVIEW
TEAM MEMBERS
Wesfarmers 2018 Annual Report2The 2018 financial year was one of significant change for Wesfarmers,
with decisive actions taken to reposition the Group’s portfolio to deliver
sustainable growth in earnings and improved shareholder returns.
Sustainability Signed
reports
Shareholder and
ASX information
Financial
statements
Directors’
report
Governance
Operating and
financial review
Overview
1 The 2018 earnings before interest and tax for Department Stores excludes Target’s pre-tax non-cash impairment of $306 million.
Coles 2018 2017
Revenue $m 39,388 39,217
Earnings before interest and tax $m 1,500 1,609
Segment assets $m 21,180 21,140
Segment liabilities $m 4,561 4,245
Capital employed (R12) $m 16,386 16,586
Return on capital employed (R12) % 9.2 9.7
Capital expenditure $m 762 811
Industrials (including Curragh mine) 2018 2017
Revenue $m 5,269 5,161
Earnings before interest and tax $m 867 915
Segment assets $m 3,500 4,229
Segment liabilities $m 758 1,125
Capital employed (R12) $m 3,295 3,393
Return on capital employed (R12) % 26.3 27.0
Capital expenditure $m 167 169
Officeworks 2018 2017
Revenue $m 2,142 1,964
Earnings before interest and tax $m 156 144
Segment assets $m 1,452 1,401
Segment liabilities $m 532 488
Capital employed (R12) $m 939 980
Return on capital employed (R12) % 16.6 14.7
Capital expenditure $m 45 36
Department Stores 20181 2017
Revenue $m 8,837 8,528
Earnings before interest and tax $m 660 543
Segment assets $m 3,617 3,928
Segment liabilities $m 1,482 1,423
Capital employed (R12) $m 2,013 2,253
Return on capital employed (R12) % 32.8 24.1
Capital expenditure $m 293 222
Bunnings 2018 2017
Revenue $m 12,544 11,514
Earnings before interest and tax $m 1,504 1,334
Segment assets $m 5,025 4,846
Segment liabilities $m 1,875 1,785
Capital employed (R12) $m 3,045 3,192
Return on capital employed (R12) % 49.4 41.8
Capital expenditure $m 497 367
Divisional performance
Wesfarmers 2018 Annual Report 7
BACK
RETAIL
INDUSTRIALS CORPORATE
OTHER
BUSINESSES
COLES OFFICEWORKSBUNNINGS DEPARTMENT STORES
Coles*
Chemicals,
Energy and
Fertilisers
Kmart Industrial &
Safety
Target ResourcesOfficeworksBunnings
Coles
Online CSBP Blackwoods
BWP Trust
(24.8%)
Curragh*
Coles
Express
Australian
Vinyls
Workwear
Group
Gresham
Partners
(50%)
Vintage
Cellars
Australian
Gold
Reagents
(75%)
Coregas
Wespine
Industries
(50%)
First
Choice
Liquor
Queensland
Nitrates
(50%)
Greencap
Liquorland EVOL LNG NZ Safety
Blackwoods
Spirit
Hotels Kleenheat
Coles
Financial
Services
Quadrant
Energy*
(13.2%)
Kmart Tyre
and Auto
Service*
GROUP STRUCTURE
* In March 2018, Wesfarmers announced its intention to demerge Coles and the completion of the sale of
the Curragh coal mine. In August 2018, Wesfarmers announced that it had entered into agreements to sell
Kmart Tyre and Auto Service, its 40 per cent interest in Bengalla, and its indirect interest in Quadrant Energy.
Bengalla*
(40%)
Wesfarmers 2018 Annual Report 5
anticipating the needs
of our customers and
delivering competitive
goods and services
supporting the
communities in
which we operate
acting with integrity
and honesty in all of
our dealings
taking care of the
environment
engaging fairly with
our suppliers, and
sourcing ethically
and sustainably
looking after our
team members
and providing a
safe, fulfilling work
environment
THE PRIMARY OBJECTIVE OF
WESFARMERS IS TO PROVIDE
A SATISFACTORY RETURN TO
SHAREHOLDERS
We believe it is only possible to achieve this over the long term by:
Wesfarmers 2018 Annual Report4
The 2018 financial year was one of significant change for Wesfarmers,
with decisive actions taken to reposition the Group’s portfolio to deliver
sustainable growth in earnings and improved shareholder returns.
Sustainability Signed
reports
Shareholder and
ASX information
Financial
statements
Directors’
report
Governance
Operating and
financial review
Overview
1 The 2018 earnings before interest and tax for Department Stores excludes Target’s pre-tax non-cash impairment of $306 million.
Coles 2018 2017
Revenue $m 39,388 39,217
Earnings before interest and tax $m 1,500 1,609
Segment assets $m 21,180 21,140
Segment liabilities $m 4,561 4,245
Capital employed (R12) $m 16,386 16,586
Return on capital employed (R12) % 9.2 9.7
Capital expenditure $m 762 811
Industrials (including Curragh mine) 2018 2017
Revenue $m 5,269 5,161
Earnings before interest and tax $m 867 915
Segment assets $m 3,500 4,229
Segment liabilities $m 758 1,125
Capital employed (R12) $m 3,295 3,393
Return on capital employed (R12) % 26.3 27.0
Capital expenditure $m 167 169
Officeworks 2018 2017
Revenue $m 2,142 1,964
Earnings before interest and tax $m 156 144
Segment assets $m 1,452 1,401
Segment liabilities $m 532 488
Capital employed (R12) $m 939 980
Return on capital employed (R12) % 16.6 14.7
Capital expenditure $m 45 36
Department Stores 20181 2017
Revenue $m 8,837 8,528
Earnings before interest and tax $m 660 543
Segment assets $m 3,617 3,928
Segment liabilities $m 1,482 1,423
Capital employed (R12) $m 2,013 2,253
Return on capital employed (R12) % 32.8 24.1
Capital expenditure $m 293 222
Bunnings 2018 2017
Revenue $m 12,544 11,514
Earnings before interest and tax $m 1,504 1,334
Segment assets $m 5,025 4,846
Segment liabilities $m 1,875 1,785
Capital employed (R12) $m 3,045 3,192
Return on capital employed (R12) % 49.4 41.8
Capital expenditure $m 497 367
Divisional performance
Wesfarmers 2018 Annual Report 7BACK
INDUSTRIALS CORPORATE
OTHER
BUSINESSES
COLES OFFICEWORKSBUNNINGS DEPARTMENT STORES
Coles*
Chemicals,
Energy and
Fertilisers
Kmart Industrial &
Safety
Target ResourcesOfficeworksBunnings
Coles
Online CSBP Blackwoods
BWP Trust
(24.8%)
Curragh*
Coles
Express
Australian
Vinyls
Workwear
Group
Gresham
Partners
(50%)
Vintage
Cellars
Australian
Gold
Reagents
(75%)
Coregas
Wespine
Industries
(50%)
First
Choice
Liquor
Queensland
Nitrates
(50%)
Greencap
Liquorland EVOL LNG NZ Safety
Blackwoods
Spirit
Hotels Kleenheat
Coles
Financial
Services
Quadrant
Energy*
(13.2%)
Kmart Tyre
and Auto
Service*
GROUP STRUCTURE
* In March 2018, Wesfarmers announced its intention to demerge Coles and the completion of the sale of
the Curragh coal mine. In August 2018, Wesfarmers announced that it had entered into agreements to sell
Kmart Tyre and Auto Service, its 40 per cent interest in Bengalla, and its indirect interest in Quadrant Energy.
Bengalla*
(40%)
Wesfarmers 2018 Annual Report 5
anticipating the needs
of our customers and
delivering competitive
goods and services
supporting the
communities in
which we operate
acting with integrity
and honesty in all of
our dealings
taking care of the
environment
engaging fairly with
our suppliers, and
sourcing ethically
and sustainably
looking after our
team members
and providing a
safe, fulfilling work
environment
THE PRIMARY OBJECTIVE OF
WESFARMERS IS TO PROVIDE
A SATISFACTORY RETURN TO
SHAREHOLDERS
We believe it is only possible to achieve this over the long term by:
Wesfarmers 2018 Annual Report4
The 2018 financial year was one of significant change for Wesfarmers,
with decisive actions taken to reposition the Group’s portfolio to deliver
sustainable growth in earnings and improved shareholder returns.
Sustainability Signed
reports
Shareholder and
ASX information
Financial
statements
Directors’
report
Governance
Operating and
financial review
Overview
1 The 2018 earnings before interest and tax for Department Stores excludes Target’s pre-tax non-cash impairment of $306 million.
Coles 2018 2017
Revenue $m 39,388 39,217
Earnings before interest and tax $m 1,500 1,609
Segment assets $m 21,180 21,140
Segment liabilities $m 4,561 4,245
Capital employed (R12) $m 16,386 16,586
Return on capital employed (R12) % 9.2 9.7
Capital expenditure $m 762 811
Industrials (including Curragh mine) 2018 2017
Revenue $m 5,269 5,161
Earnings before interest and tax $m 867 915
Segment assets $m 3,500 4,229
Segment liabilities $m 758 1,125
Capital employed (R12) $m 3,295 3,393
Return on capital employed (R12) % 26.3 27.0
Capital expenditure $m 167 169
Officeworks 2018 2017
Revenue $m 2,142 1,964
Earnings before interest and tax $m 156 144
Segment assets $m 1,452 1,401
Segment liabilities $m 532 488
Capital employed (R12) $m 939 980
Return on capital employed (R12) % 16.6 14.7
Capital expenditure $m 45 36
Department Stores 20181 2017
Revenue $m 8,837 8,528
Earnings before interest and tax $m 660 543
Segment assets $m 3,617 3,928
Segment liabilities $m 1,482 1,423
Capital employed (R12) $m 2,013 2,253
Return on capital employed (R12) % 32.8 24.1
Capital expenditure $m 293 222
Bunnings 2018 2017
Revenue $m 12,544 11,514
Earnings before interest and tax $m 1,504 1,334
Segment assets $m 5,025 4,846
Segment liabilities $m 1,875 1,785
Capital employed (R12) $m 3,045 3,192
Return on capital employed (R12) % 49.4 41.8
Capital expenditure $m 497 367
Divisional performance
Wesfarmers 2018 Annual Report 7BACK
The 2018 financial year was one of significant change for Wesfarmers,
with decisive actions taken to reposition the Group’s portfolio to deliver
sustainable growth in earnings and improved shareholder returns.
Sustainability Signed
reports
Shareholder and
ASX information
Financial
statements
Directors’
report
Governance
Operating and
financial review
Overview
1 The 2018 earnings before interest and tax for Department Stores excludes Target’s pre-tax non-cash impairment of $306 million.
Coles 2018 2017
Revenue $m 39,388 39,217
Earnings before interest and tax $m 1,500 1,609
Segment assets $m 21,180 21,140
Segment liabilities $m 4,561 4,245
Capital employed (R12) $m 16,386 16,586
Return on capital employed (R12) % 9.2 9.7
Capital expenditure $m 762 811
Industrials (including Curragh mine) 2018 2017
Revenue $m 5,269 5,161
Earnings before interest and tax $m 867 915
Segment assets $m 3,500 4,229
Segment liabilities $m 758 1,125
Capital employed (R12) $m 3,295 3,393
Return on capital employed (R12) % 26.3 27.0
Capital expenditure $m 167 169
Officeworks 2018 2017
Revenue $m 2,142 1,964
Earnings before interest and tax $m 156 144
Segment assets $m 1,452 1,401
Segment liabilities $m 532 488
Capital employed (R12) $m 939 980
Return on capital employed (R12) % 16.6 14.7
Capital expenditure $m 45 36
Department Stores 20181 2017
Revenue $m 8,837 8,528
Earnings before interest and tax $m 660 543
Segment assets $m 3,617 3,928
Segment liabilities $m 1,482 1,423
Capital employed (R12) $m 2,013 2,253
Return on capital employed (R12) % 32.8 24.1
Capital expenditure $m 293 222
Bunnings 2018 2017
Revenue $m 12,544 11,514
Earnings before interest and tax $m 1,504 1,334
Segment assets $m 5,025 4,846
Segment liabilities $m 1,875 1,785
Capital employed (R12) $m 3,045 3,192
Return on capital employed (R12) % 49.4 41.8
Capital expenditure $m 497 367
Divisional performance
Wesfarmers 2018 Annual Report 7
Overview
PERFORMANCE
OVERVIEW
CREATING WEALTH AND ADDING VALUE
1 Discontinued operations relate to the Curragh coal mine and Bunnings United Kingdom and Ireland (BUKI) which were disposed of during the year. 2017 balances have been
restated where necessary to reflect these discontinued businesses.
2 Significant items for continuing operations relate to Target’s non-cash impairment of $306 million pre-tax ($300 million post-tax).
3 2018 excludes the following significant items pre-tax (post-tax) amounts: $931 million ($1,023 million) of impairments, write-offs and store closure provisions in BUKI; a
$375 million ($375 million) loss on disposal of BUKI; $306 million ($300 million) of non-cash impairments in Target and a $120 million ($123 million) gain on disposal of Curragh.
Group performance
Key financial data 2018 2017
Results from continuing operations¹
Revenue $m 66,883 64,913
Earnings before interest, tax, depreciation and amortisation $m 5,259 5,352
Earnings before interest, tax, depreciation and amortisation (excluding significant items)² $m 5,565 5,352
Earnings before interest and tax $m 4,061 4,177
Earnings before interest and tax (excluding significant items)² $m 4,367 4,177
Net profit after tax $m 2,604 2,760
Net profit after tax (excluding significant items)2 $m 2,904 2,760
Basic earnings per share cents 230.2 244.7
Basic earnings per share (excluding significant items)² cents 256.8 244.7
Results including discontinued operations¹
Earnings before interest and tax $m 2,796 4,402
Earnings before interest and tax (excluding significant items)³ $m 4,288 4,402
Net profit after tax $m 1,197 2,873
Net profit after tax (excluding significant items)³ $m 2,772 2,873
Basic earnings per share cents 105.8 254.7
Basic earnings per share (excluding significant items)³ cents 245.1 254.7
Return on average shareholders’ equity (R12) (excluding significant items)³ % 11.7 12.4
Cash flow and dividends (including discontinued operations)¹
Operating cash flows $m 4,080 4,226
Net capital expenditure on property, plant and equipment and intangibles $m 1,209 1,028
Free cash flows $m 3,422 4,173
Equity dividends paid $m 2,528 1,998
Operating cash flow per share cents 360.1 374.1
Free cash flow per share cents 302.0 369.5
Dividends per share (declared) cents 223.0 223.0
Balance sheet and gearing
Total assets $m 36,933 40,115
Net financial debt $m 3,580 4,321
Shareholders’ equity $m 22,754 23,941
Fixed charges cover (R12) (excluding significant items)3 times 3.0 3.1
Interest cover (R12) (cash basis) (excluding significant items)3 times 30.4 25.0
$7.0b Payments for rent,
services and other external costs
Value distribution
$47.2b Payments to suppliers
Wealth creation 1
$ 9.3b Employees (salaries, wages and other benefits)
$2.1b Government (taxes and royalties)
$0.2b Lenders (borrowed funds)
$2.5b Shareholders (dividends)
$1.6b Reinvested in the business
$15.7b$69.9b
1 Includes discontinued operations.
Wesfarmers 2018 Annual Report6BACK
with decisive actions taken to reposition the Group’s portfolio to deliver
sustainable growth in earnings and improved shareholder returns.
Sustainability Signed
reports
Shareholder and
ASX information
Financial
statements
Directors’
report
Governance
Operating and
financial review
Overview
1 The 2018 earnings before interest and tax for Department Stores excludes Target’s pre-tax non-cash impairment of $306 million.
Coles 2018 2017
Revenue $m 39,388 39,217
Earnings before interest and tax $m 1,500 1,609
Segment assets $m 21,180 21,140
Segment liabilities $m 4,561 4,245
Capital employed (R12) $m 16,386 16,586
Return on capital employed (R12) % 9.2 9.7
Capital expenditure $m 762 811
Industrials (including Curragh mine) 2018 2017
Revenue $m 5,269 5,161
Earnings before interest and tax $m 867 915
Segment assets $m 3,500 4,229
Segment liabilities $m 758 1,125
Capital employed (R12) $m 3,295 3,393
Return on capital employed (R12) % 26.3 27.0
Capital expenditure $m 167 169
Officeworks 2018 2017
Revenue $m 2,142 1,964
Earnings before interest and tax $m 156 144
Segment assets $m 1,452 1,401
Segment liabilities $m 532 488
Capital employed (R12) $m 939 980
Return on capital employed (R12) % 16.6 14.7
Capital expenditure $m 45 36
Department Stores 20181 2017
Revenue $m 8,837 8,528
Earnings before interest and tax $m 660 543
Segment assets $m 3,617 3,928
Segment liabilities $m 1,482 1,423
Capital employed (R12) $m 2,013 2,253
Return on capital employed (R12) % 32.8 24.1
Capital expenditure $m 293 222
Bunnings 2018 2017
Revenue $m 12,544 11,514
Earnings before interest and tax $m 1,504 1,334
Segment assets $m 5,025 4,846
Segment liabilities $m 1,875 1,785
Capital employed (R12) $m 3,045 3,192
Return on capital employed (R12) % 49.4 41.8
Capital expenditure $m 497 367
Divisional performance
Wesfarmers 2018 Annual Report 7
Overview
PERFORMANCE
OVERVIEW
CREATING WEALTH AND ADDING VALUE
1 Discontinued operations relate to the Curragh coal mine and Bunnings United Kingdom and Ireland (BUKI) which were disposed of during the year. 2017 balances have been
restated where necessary to reflect these discontinued businesses.
2 Significant items for continuing operations relate to Target’s non-cash impairment of $306 million pre-tax ($300 million post-tax).
3 2018 excludes the following significant items pre-tax (post-tax) amounts: $931 million ($1,023 million) of impairments, write-offs and store closure provisions in BUKI; a
$375 million ($375 million) loss on disposal of BUKI; $306 million ($300 million) of non-cash impairments in Target and a $120 million ($123 million) gain on disposal of Curragh.
Group performance
Key financial data 2018 2017
Results from continuing operations¹
Revenue $m 66,883 64,913
Earnings before interest, tax, depreciation and amortisation $m 5,259 5,352
Earnings before interest, tax, depreciation and amortisation (excluding significant items)² $m 5,565 5,352
Earnings before interest and tax $m 4,061 4,177
Earnings before interest and tax (excluding significant items)² $m 4,367 4,177
Net profit after tax $m 2,604 2,760
Net profit after tax (excluding significant items)2 $m 2,904 2,760
Basic earnings per share cents 230.2 244.7
Basic earnings per share (excluding significant items)² cents 256.8 244.7
Results including discontinued operations¹
Earnings before interest and tax $m 2,796 4,402
Earnings before interest and tax (excluding significant items)³ $m 4,288 4,402
Net profit after tax $m 1,197 2,873
Net profit after tax (excluding significant items)³ $m 2,772 2,873
Basic earnings per share cents 105.8 254.7
Basic earnings per share (excluding significant items)³ cents 245.1 254.7
Return on average shareholders’ equity (R12) (excluding significant items)³ % 11.7 12.4
Cash flow and dividends (including discontinued operations)¹
Operating cash flows $m 4,080 4,226
Net capital expenditure on property, plant and equipment and intangibles $m 1,209 1,028
Free cash flows $m 3,422 4,173
Equity dividends paid $m 2,528 1,998
Operating cash flow per share cents 360.1 374.1
Free cash flow per share cents 302.0 369.5
Dividends per share (declared) cents 223.0 223.0
Balance sheet and gearing
Total assets $m 36,933 40,115
Net financial debt $m 3,580 4,321
Shareholders’ equity $m 22,754 23,941
Fixed charges cover (R12) (excluding significant items)3 times 3.0 3.1
Interest cover (R12) (cash basis) (excluding significant items)3 times 30.4 25.0
$7.0b Payments for rent,
services and other external costs
Value distribution
$47.2b Payments to suppliers
Wealth creation 1
$ 9.3b Employees (salaries, wages and other benefits)
$2.1b Government (taxes and royalties)
$0.2b Lenders (borrowed funds)
$2.5b Shareholders (dividends)
$1.6b Reinvested in the business
$15.7b$69.9b
1 Includes discontinued operations.
Wesfarmers 2018 Annual Report6BACK
Sustainability Signed
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ASX information
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statements
Directors’
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Operating and
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Overview
objective ‘to provide a satisfactory
return to shareholders’. They will
result in a reduction in the size of the
company but leave it with a group of
strong businesses each with good
growth potential and, importantly, a
very strong balance sheet.
That financial strength does not mean
that we feel any urgency to make
new acquisitions. Apart from the fact
that there are many opportunities for
growth in our existing businesses,
new investments will only occur if
we assess them to have the potential
to deliver superior returns to our
shareholders over the long term.
The Group Managing Director
has reiterated this point on many
occasions since his appointment.
External events, including the Royal
Commission into financial services,
gave rise during the past year
to extensive commentary about
corporate reputation and the role of
company boards and management.
These have ranged from the
suggestion that company directors
should be more involved in the details
of management; to the contention,
on the other hand, that boards are
overwhelmed with information;
that the establishment of board
committees has blurred the lines
between governing and management;
or that the focus of corporate
objectives on financial outcomes is
incompatible with good corporate
citizenship. Your company’s directors
have firm views on these issues.
The role of directors is to govern, not
to manage. The most important aspect
of the role is the appointment of the
chief executive officer and ensuring
that the CEO assembles a competent
management team. Directors whose
involvement is part time cannot
possibly be across the detail of the
business. They delegate the running
of the company to management; but
the second vital role directors play
is holding management’s ‘feet to the
fire’ - ensuring that the company’s
policies and procedures are directed
towards achieving desired outcomes,
that management understands and
communicates the company’s values
and codes of behaviour, that bad
news travels upwards as fast as
good news, that unacceptable
behaviour is dealt with expeditiously
and that employee rewards are aligned
with performance.
Board committees are an important
element in achieving these goals.
They allow directors to gain a deeper
understanding of issues, including
audit and risk matters, human
resources, safety practices and so
on; and to give management the
benefit of their own experience in
such areas. But committee members
and the committee chair need to be
careful to ensure that they do not
default to acting in a management
role: employees report through the
management hierarchy, not to a
board committee.
As for the suggestion that focusing
on financial outcomes is incompatible
with good corporate citizenship,
we couldn’t disagree more. The
reason listed companies exist is
to provide their shareholders with
financial returns. People buy shares
in Wesfarmers because they hope it
will provide them with better returns
than if they buy shares in another
company; but that does not give a
company licence to put profit before
good behaviour. The simple fact is
that unless a company behaves as
a good corporate citizen, it will not
achieve financial success over the
long term. Poor behaviour will cause
many people not to buy shares or
to sell their holding, customers will
desert it, it will result in fines or bans
for the company and the company
will not be invited to join in profitable
opportunities. In short, the company
will lose its ‘licence to operate’.
That is why at Wesfarmers we have
always qualified our single financial
objective with the words you see
on page four of this report; words
describing our commitment to take
care of our employees, customers,
suppliers, the environment and the
communities in which we operate.
The fact that Wesfarmers has
adhered to such principles explains
why it continues to prosper more
than a century after it was formed.
It also explains why it has been so
successful since its public listing in
1984. A $1,000 investment in the
company at the time of listing, with
dividends reinvested, is now worth
$420,000, compared to $38,000 for
a $1,000 investment in the ASX 50.
Notwithstanding the uncertainties
facing all businesses in our complex
world, and the inevitability of making
suboptimal decisions, hopefully as
well as good ones, we are determined
to continue that record of success.
Achieving that will require a competent
and dedicated board and management
team, and I believe shareholders have
reason to be confident.
I take this opportunity, on behalf of
my fellow directors, to thank our
outgoing directors Paul Bassat and
James Graham for their efforts on
behalf of the company. Paul has
provided valuable insights during
his time on the Board, particularly
in respect of issues around digital
disruption; James’ contribution
to Wesfarmers over 40 years
has been extraordinary. His first
involvement with the Group was as
principal advisor to the Wesfarmers
Cooperative in 1977 in its protracted,
company-making takeover of
the fertiliser company CSBP and
Farmers Ltd. James has provided
advice on every strategic move
by Wesfarmers since, initially in a
professional role, but over the last 20
years in his role as a director. It is no
exaggeration to say that the financial
success of Wesfarmers described
above has been due in no small
part to James’ involvement. We are
delighted that the shareholders of
Coles will benefit similarly through
his role as Chair as it begins its
journey as a re-listed company.
We welcome Sir Bill English to
the Wesfarmers Board and look
forward to his contribution; and
we acknowledge with thanks the
substantial contribution which
Archie Norman has made as advisor
to the Board and management
since the Coles takeover in 2007.
Archie will continue as advisor to the
Coles board and we look forward to
welcoming David Cheesewright as
advisor to our board and Wesfarmers’
nominee on the Coles board.
In closing, I pay tribute to our
hard-working team, led by Rob Scott.
We look forward to overseeing their
efforts to ensure the continued
success of the company.
Michael Chaney AO
Chairman
Wesfarmers 2018 Annual Report 9CHAIRMAN’S
MESSAGE
Overview
The 2018 financial year was one of
significant change for Wesfarmers,
when we took some difficult, but
important decisions to restructure
the Group’s portfolio of businesses in
the interest of long term shareholder
returns.
On a statutory basis, net profit after
tax fell 58.3 per cent to $1.2 billion
as a result of impairment charges
and closure costs for the Bunnings
United Kingdom and Ireland (BUKI)
business and a further impairment
of the Target business, partially
offset by a profit on sale of the
Curragh coal business.
Excluding significant items and
discontinued operations, net
profit from continuing operations
rose 5.2 per cent to $2.9 billion, a
pleasing result which reflected a
strong performance in the Group’s
businesses, particularly in Bunnings
Australia and New Zealand, and
Department Stores.
The directors declared a fully-franked
final dividend of $1.20 per share,
bringing the full-year dividend to
$2.23 per share, the same as in 2017.
The succession from Richard Goyder
to Rob Scott as Group Managing
Director in November 2017 was one
of a number of changes in senior
management during a year which
also saw Anthony Gianotti appointed
as Group Chief Financial Officer
and new leaders appointed in the
Industrials division and in Business
Development. Wesfarmers has also
announced a number of further senior
leadership changes that will occur
in the first half of the 2019 financial
year. The Board is confident that the
new team assembled by Rob is well
equipped to continue the company’s
record of success. Our great thanks
go to the retiring executives for their
dedication and outstanding efforts on
behalf of Wesfarmers.
These management changes
have paralleled a restructuring of
the conglomerate’s portfolio of
businesses. The BUKI operations
and Curragh coal mine were sold
and the proposed demerger of Coles
was announced during the 2018 year.
Further, the sale of Kmart Tyre and
Auto Service, our 40 per cent interest
in the Bengalla coal mine, and our
indirect interest in Quadrant Energy
were announced in the months
following the close of the year. The
Coles demerger is scheduled to
be completed in November 2018,
subject to shareholder and other
approvals.
These disposals reflect the
determination of the Board and
management to prioritise the
achievement of Wesfarmers’ stated
CHAIRMAN
MICHAEL CHANEY AO
Wesfarmers 2018 Annual Report8BACK
reports
Shareholder and
ASX information
Financial
statements
Directors’
report
Governance
Operating and
financial review
Overview
objective ‘to provide a satisfactory
return to shareholders’. They will
result in a reduction in the size of the
company but leave it with a group of
strong businesses each with good
growth potential and, importantly, a
very strong balance sheet.
That financial strength does not mean
that we feel any urgency to make
new acquisitions. Apart from the fact
that there are many opportunities for
growth in our existing businesses,
new investments will only occur if
we assess them to have the potential
to deliver superior returns to our
shareholders over the long term.
The Group Managing Director
has reiterated this point on many
occasions since his appointment.
External events, including the Royal
Commission into financial services,
gave rise during the past year
to extensive commentary about
corporate reputation and the role of
company boards and management.
These have ranged from the
suggestion that company directors
should be more involved in the details
of management; to the contention,
on the other hand, that boards are
overwhelmed with information;
that the establishment of board
committees has blurred the lines
between governing and management;
or that the focus of corporate
objectives on financial outcomes is
incompatible with good corporate
citizenship. Your company’s directors
have firm views on these issues.
The role of directors is to govern, not
to manage. The most important aspect
of the role is the appointment of the
chief executive officer and ensuring
that the CEO assembles a competent
management team. Directors whose
involvement is part time cannot
possibly be across the detail of the
business. They delegate the running
of the company to management; but
the second vital role directors play
is holding management’s ‘feet to the
fire’ - ensuring that the company’s
policies and procedures are directed
towards achieving desired outcomes,
that management understands and
communicates the company’s values
and codes of behaviour, that bad
news travels upwards as fast as
good news, that unacceptable
behaviour is dealt with expeditiously
and that employee rewards are aligned
with performance.
Board committees are an important
element in achieving these goals.
They allow directors to gain a deeper
understanding of issues, including
audit and risk matters, human
resources, safety practices and so
on; and to give management the
benefit of their own experience in
such areas. But committee members
and the committee chair need to be
careful to ensure that they do not
default to acting in a management
role: employees report through the
management hierarchy, not to a
board committee.
As for the suggestion that focusing
on financial outcomes is incompatible
with good corporate citizenship,
we couldn’t disagree more. The
reason listed companies exist is
to provide their shareholders with
financial returns. People buy shares
in Wesfarmers because they hope it
will provide them with better returns
than if they buy shares in another
company; but that does not give a
company licence to put profit before
good behaviour. The simple fact is
that unless a company behaves as
a good corporate citizen, it will not
achieve financial success over the
long term. Poor behaviour will cause
many people not to buy shares or
to sell their holding, customers will
desert it, it will result in fines or bans
for the company and the company
will not be invited to join in profitable
opportunities. In short, the company
will lose its ‘licence to operate’.
That is why at Wesfarmers we have
always qualified our single financial
objective with the words you see
on page four of this report; words
describing our commitment to take
care of our employees, customers,
suppliers, the environment and the
communities in which we operate.
The fact that Wesfarmers has
adhered to such principles explains
why it continues to prosper more
than a century after it was formed.
It also explains why it has been so
successful since its public listing in
1984. A $1,000 investment in the
company at the time of listing, with
dividends reinvested, is now worth
$420,000, compared to $38,000 for
a $1,000 investment in the ASX 50.
Notwithstanding the uncertainties
facing all businesses in our complex
world, and the inevitability of making
suboptimal decisions, hopefully as
well as good ones, we are determined
to continue that record of success.
Achieving that will require a competent
and dedicated board and management
team, and I believe shareholders have
reason to be confident.
I take this opportunity, on behalf of
my fellow directors, to thank our
outgoing directors Paul Bassat and
James Graham for their efforts on
behalf of the company. Paul has
provided valuable insights during
his time on the Board, particularly
in respect of issues around digital
disruption; James’ contribution
to Wesfarmers over 40 years
has been extraordinary. His first
involvement with the Group was as
principal advisor to the Wesfarmers
Cooperative in 1977 in its protracted,
company-making takeover of
the fertiliser company CSBP and
Farmers Ltd. James has provided
advice on every strategic move
by Wesfarmers since, initially in a
professional role, but over the last 20
years in his role as a director. It is no
exaggeration to say that the financial
success of Wesfarmers described
above has been due in no small
part to James’ involvement. We are
delighted that the shareholders of
Coles will benefit similarly through
his role as Chair as it begins its
journey as a re-listed company.
We welcome Sir Bill English to
the Wesfarmers Board and look
forward to his contribution; and
we acknowledge with thanks the
substantial contribution which
Archie Norman has made as advisor
to the Board and management
since the Coles takeover in 2007.
Archie will continue as advisor to the
Coles board and we look forward to
welcoming David Cheesewright as
advisor to our board and Wesfarmers’
nominee on the Coles board.
In closing, I pay tribute to our
hard-working team, led by Rob Scott.
We look forward to overseeing their
efforts to ensure the continued
success of the company.
Michael Chaney AO
Chairman
Wesfarmers 2018 Annual Report 9CHAIRMAN’S
MESSAGE
Overview
The 2018 financial year was one of
significant change for Wesfarmers,
when we took some difficult, but
important decisions to restructure
the Group’s portfolio of businesses in
the interest of long term shareholder
returns.
On a statutory basis, net profit after
tax fell 58.3 per cent to $1.2 billion
as a result of impairment charges
and closure costs for the Bunnings
United Kingdom and Ireland (BUKI)
business and a further impairment
of the Target business, partially
offset by a profit on sale of the
Curragh coal business.
Excluding significant items and
discontinued operations, net
profit from continuing operations
rose 5.2 per cent to $2.9 billion, a
pleasing result which reflected a
strong performance in the Group’s
businesses, particularly in Bunnings
Australia and New Zealand, and
Department Stores.
The directors declared a fully-franked
final dividend of $1.20 per share,
bringing the full-year dividend to
$2.23 per share, the same as in 2017.
The succession from Richard Goyder
to Rob Scott as Group Managing
Director in November 2017 was one
of a number of changes in senior
management during a year which
also saw Anthony Gianotti appointed
as Group Chief Financial Officer
and new leaders appointed in the
Industrials division and in Business
Development. Wesfarmers has also
announced a number of further senior
leadership changes that will occur
in the first half of the 2019 financial
year. The Board is confident that the
new team assembled by Rob is well
equipped to continue the company’s
record of success. Our great thanks
go to the retiring executives for their
dedication and outstanding efforts on
behalf of Wesfarmers.
These management changes
have paralleled a restructuring of
the conglomerate’s portfolio of
businesses. The BUKI operations
and Curragh coal mine were sold
and the proposed demerger of Coles
was announced during the 2018 year.
Further, the sale of Kmart Tyre and
Auto Service, our 40 per cent interest
in the Bengalla coal mine, and our
indirect interest in Quadrant Energy
were announced in the months
following the close of the year. The
Coles demerger is scheduled to
be completed in November 2018,
subject to shareholder and other
approvals.
These disposals reflect the
determination of the Board and
management to prioritise the
achievement of Wesfarmers’ stated
CHAIRMAN
MICHAEL CHANEY AO
Wesfarmers 2018 Annual Report8BACK
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statements
Directors’
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Finally, our Industrials Division also
performed well, with strong returns
from Resources and Chemicals,
Energy and Fertilisers, and modest
earnings growth in Industrial and
Safety.
In addition to the divestment of
Homebase, Wesfarmers also
completed the sale of Curragh.
The sale of Curragh and the
announcement in August 2018
of the sale of Wesfarmers’ 40 per
cent interest in the Bengalla mine
mark Wesfarmers’ exit from coal
mining following a detailed strategic
review of these assets. Both have
been very successful investments
for Wesfarmers and I would like to
sincerely thank the dedicated teams,
ably led by Craig McCabe, for their
efforts over the years.
The sale of Kmart Tyre and Auto
Service (KTAS) was also announced
in August 2018. It achieved strong
earnings growth under Wesfarmers’
ownership and the sale to Continental
AG provides an opportunity to expand
its offer to customers with the backing
of a leading international company.
Thanks to the KTAS team – we wish
them the best for the future.
The most significant transaction
announced during the year was the
proposal to demerge Coles, which we
expect to complete in November 2018,
subject to shareholder and other
approvals. Coles is an iconic Australian
company which has benefited from
almost $9 billion of investment and
a world-class transformation under
Wesfarmers’ ownership. Now a mature
and profitable business, Coles is well
positioned for life as a separately
listed company. Coles will provide
shareholders with exposure to a
cash-generative business which
is expected to be resilient through
economic cycles.
The changes over the past year
are evidence of the strength of the
Wesfarmers model. Notably our
capacity to move swiftly to manage our
portfolio and the flexibility this provides
for renewal. Further, our model of
divisional autonomy provides our
operating businesses with the ability
to retain a laser-like focus on their
customers and operations and deliver
strong performance outcomes during
times of change.
At Wesfarmers, we have always
recognised that we can only provide a
satisfactory return to our shareholders
by creating long-term value for all
our stakeholders – team members,
customers, suppliers and the
communities in which we operate.
During the year, we paid our team
members over $9 billion in salaries
and wages. We are also delivering
improvements in workplace safety,
reductions in emissions intensity and
strengthening our processes around
ethical sourcing. Our businesses made
community contributions, both directly
and through customers and team
members, of $148 million.
People
Wesfarmers is the largest private
sector employer in Australia with some
217,000 team members across our
businesses. The strong performance of
our continuing operations reflects the
dedication of our hard-working teams.
Within the Leadership Team it has
been a year of renewal with the
retirement of some key executives
across the Group. The Managing
Director of Coles, John Durkan,
will hand over to Steven Cain in
September 2018. John has been
instrumental in the turnaround of
Coles, first as Merchandise Director
and more recently as Managing
Director. John leaves Coles in great
shape and we thank him for his
significant contribution.
Our long-time retail advisor,
Archie Norman, will step down as
an advisor to Wesfarmers upon
the demerger of Coles. Archie was
a driving force in the successful
turnaround of Coles and I am delighted
that he will continue to advise the
Coles Board, post-demerger.
Guy Russo will be retiring after
10 years at Wesfarmers, during which
he led the remarkable turnaround
in the fortunes of Kmart, and more
recently oversaw the reset and
return to profitability of Target. From
1 November 2018, Ian Bailey will
assume the role of Managing Director,
Department Stores in addition to his
current role as Managing Director of
Kmart. Marina Joanou was promoted
to Managing Director of Target in
August 2018. Ian and Marina are
exceptional executives who have
worked closely with Guy through the
successful turnaround of Kmart and
recent reset of Target.
Mark Ward is also retiring as Managing
Director of Officeworks after 11 years
of outstanding service, but will remain
with the Group working on a number
of projects including the Advanced
Analytics Centre Advisory Board,
leading a Group-wide safety project,
and on the board of Bunnings.
Alan Carpenter is retiring as Executive
General Manager of Corporate Affairs,
a position he has held since he joined
Wesfarmers in 2009. Alan’s advice and
counsel have been invaluable to many
of us during that period, and we wish
him well in retirement. Naomi Flutter
has joined our Leadership Team to
succeed Alan, and brings a wealth of
experience to this important role.
Earlier in the year, Anthony Gianotti
was promoted to Chief Financial
Officer and we welcomed David
Baxby to the Group as Managing
Director, Wesfarmers Industrials, and
Ed Bostock as Managing Director,
Business Development.
Outlook
When reflecting on the strength of our
balance sheet, our businesses and our
teams, I am confident that Wesfarmers’
best days lie ahead.
We expect our retail businesses to
deliver continued earnings growth
through further investment and
improvement in their customer offers,
expanding their addressable markets
and offering even better products and
service. The focus of our Industrials
business will remain on improving
safety and operational efficiency
while evaluating new opportunities to
leverage our capabilities and capital.
With the establishment of the
Advanced Analytics Centre, we will
further develop our digital and data
capabilities. Across the Group, we
are focused on building great talent
and teams, and encouraging an
entrepreneurial spirit. These areas will
define the competitive advantage of
Wesfarmers in the decades to come.
Subject to shareholder approval,
the demerger of Coles will enable
Wesfarmers to reaffirm its position as
a diversified conglomerate and
reallocate capital towards higher
growth opportunities.
Wesfarmers will retain a 15 per cent
shareholding in Coles, and will support
investments in flybuys, our joint
venture with Coles, that will provide
opportunities to better leverage data
and digital capabilities for the benefit
of customers.
We will continue to take a long-term
view, retaining a strong balance sheet
and capital discipline to enable us to
take advantage of opportunities to
create shareholder value if and when
they arise.
In conclusion, I extend my thanks to
our dedicated team members across
the Group during this period of change.
Rob Scott
Managing Director
Wesfarmers 2018 Annual Report 11Overview
MANAGING
DIRECTOR’S
REPORT
It is my pleasure to provide the
2018 financial year update, my first
as Managing Director.
This was a year of change for
Wesfarmers, with good progress made
to reposition the portfolio and ensure
we have the right settings in place for
sustained value creation. The changes
we have made and those in progress
have been guided by a steadfast
commitment to our core objective
to provide a satisfactory return to
shareholders.
Through these changes, our businesses
delivered a strong financial result, with
earnings from continuing operations
and excluding significant items growing
5.2 per cent. Reported net profit after
tax reflected the trading losses and
significant items associated with
Bunnings United Kingdom and
Ireland and the sale of Homebase
in June 2018. While this was a
disappointing investment, the sale has
freed Wesfarmers of operating losses
and future capital and lease obligations,
and has strengthened the Group’s
financial position.
Bunnings in Australia and New Zealand
had another strong year, with sustained
sales momentum reflecting continued
improvement in its customer offer
through investment in price, range
and service.
Coles’ earnings were lower than the
prior year due to the annualisation of
last year’s investment in the customer
offer, one-off items in the prior year and
lower convenience earnings. It was
pleasing to see Coles deliver earnings
growth and stronger sales momentum
in the second half of the year as a result
of improvements in customer service
and retail execution.
Our Department Stores division
delivered record earnings under
Wesfarmers’ ownership, with Kmart
building on its position as a leading
global product development company
and discount retailer. Target was
able to improve earnings on the
prior year through better cost and
inventory control, as the reset of its
offer continued. Trading conditions for
Target remain challenging and this was
reflected in the non-cash impairment
recognised during the year.
Officeworks continues to build on its
strong and consistent performance
with another positive result. It
is investing in and improving its
sophisticated omni-channel customer
offer which delivers exceptional value
and convenience to customers.
MANAGING DIRECTOR
ROB SCOTT
Wesfarmers 2018 Annual Report10BACK
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Finally, our Industrials Division also
performed well, with strong returns
from Resources and Chemicals,
Energy and Fertilisers, and modest
earnings growth in Industrial and
Safety.
In addition to the divestment of
Homebase, Wesfarmers also
completed the sale of Curragh.
The sale of Curragh and the
announcement in August 2018
of the sale of Wesfarmers’ 40 per
cent interest in the Bengalla mine
mark Wesfarmers’ exit from coal
mining following a detailed strategic
review of these assets. Both have
been very successful investments
for Wesfarmers and I would like to
sincerely thank the dedicated teams,
ably led by Craig McCabe, for their
efforts over the years.
The sale of Kmart Tyre and Auto
Service (KTAS) was also announced
in August 2018. It achieved strong
earnings growth under Wesfarmers’
ownership and the sale to Continental
AG provides an opportunity to expand
its offer to customers with the backing
of a leading international company.
Thanks to the KTAS team – we wish
them the best for the future.
The most significant transaction
announced during the year was the
proposal to demerge Coles, which we
expect to complete in November 2018,
subject to shareholder and other
approvals. Coles is an iconic Australian
company which has benefited from
almost $9 billion of investment and
a world-class transformation under
Wesfarmers’ ownership. Now a mature
and profitable business, Coles is well
positioned for life as a separately
listed company. Coles will provide
shareholders with exposure to a
cash-generative business which
is expected to be resilient through
economic cycles.
The changes over the past year
are evidence of the strength of the
Wesfarmers model. Notably our
capacity to move swiftly to manage our
portfolio and the flexibility this provides
for renewal. Further, our model of
divisional autonomy provides our
operating businesses with the ability
to retain a laser-like focus on their
customers and operations and deliver
strong performance outcomes during
times of change.
At Wesfarmers, we have always
recognised that we can only provide a
satisfactory return to our shareholders
by creating long-term value for all
our stakeholders – team members,
customers, suppliers and the
communities in which we operate.
During the year, we paid our team
members over $9 billion in salaries
and wages. We are also delivering
improvements in workplace safety,
reductions in emissions intensity and
strengthening our processes around
ethical sourcing. Our businesses made
community contributions, both directly
and through customers and team
members, of $148 million.
People
Wesfarmers is the largest private
sector employer in Australia with some
217,000 team members across our
businesses. The strong performance of
our continuing operations reflects the
dedication of our hard-working teams.
Within the Leadership Team it has
been a year of renewal with the
retirement of some key executives
across the Group. The Managing
Director of Coles, John Durkan,
will hand over to Steven Cain in
September 2018. John has been
instrumental in the turnaround of
Coles, first as Merchandise Director
and more recently as Managing
Director. John leaves Coles in great
shape and we thank him for his
significant contribution.
Our long-time retail advisor,
Archie Norman, will step down as
an advisor to Wesfarmers upon
the demerger of Coles. Archie was
a driving force in the successful
turnaround of Coles and I am delighted
that he will continue to advise the
Coles Board, post-demerger.
Guy Russo will be retiring after
10 years at Wesfarmers, during which
he led the remarkable turnaround
in the fortunes of Kmart, and more
recently oversaw the reset and
return to profitability of Target. From
1 November 2018, Ian Bailey will
assume the role of Managing Director,
Department Stores in addition to his
current role as Managing Director of
Kmart. Marina Joanou was promoted
to Managing Director of Target in
August 2018. Ian and Marina are
exceptional executives who have
worked closely with Guy through the
successful turnaround of Kmart and
recent reset of Target.
Mark Ward is also retiring as Managing
Director of Officeworks after 11 years
of outstanding service, but will remain
with the Group working on a number
of projects including the Advanced
Analytics Centre Advisory Board,
leading a Group-wide safety project,
and on the board of Bunnings.
Alan Carpenter is retiring as Executive
General Manager of Corporate Affairs,
a position he has held since he joined
Wesfarmers in 2009. Alan’s advice and
counsel have been invaluable to many
of us during that period, and we wish
him well in retirement. Naomi Flutter
has joined our Leadership Team to
succeed Alan, and brings a wealth of
experience to this important role.
Earlier in the year, Anthony Gianotti
was promoted to Chief Financial
Officer and we welcomed David
Baxby to the Group as Managing
Director, Wesfarmers Industrials, and
Ed Bostock as Managing Director,
Business Development.
Outlook
When reflecting on the strength of our
balance sheet, our businesses and our
teams, I am confident that Wesfarmers’
best days lie ahead.
We expect our retail businesses to
deliver continued earnings growth
through further investment and
improvement in their customer offers,
expanding their addressable markets
and offering even better products and
service. The focus of our Industrials
business will remain on improving
safety and operational efficiency
while evaluating new opportunities to
leverage our capabilities and capital.
With the establishment of the
Advanced Analytics Centre, we will
further develop our digital and data
capabilities. Across the Group, we
are focused on building great talent
and teams, and encouraging an
entrepreneurial spirit. These areas will
define the competitive advantage of
Wesfarmers in the decades to come.
Subject to shareholder approval,
the demerger of Coles will enable
Wesfarmers to reaffirm its position as
a diversified conglomerate and
reallocate capital towards higher
growth opportunities.
Wesfarmers will retain a 15 per cent
shareholding in Coles, and will support
investments in flybuys, our joint
venture with Coles, that will provide
opportunities to better leverage data
and digital capabilities for the benefit
of customers.
We will continue to take a long-term
view, retaining a strong balance sheet
and capital discipline to enable us to
take advantage of opportunities to
create shareholder value if and when
they arise.
In conclusion, I extend my thanks to
our dedicated team members across
the Group during this period of change.
Rob Scott
Managing Director
Wesfarmers 2018 Annual Report 11Overview
MANAGING
DIRECTOR’S
REPORT
It is my pleasure to provide the
2018 financial year update, my first
as Managing Director.
This was a year of change for
Wesfarmers, with good progress made
to reposition the portfolio and ensure
we have the right settings in place for
sustained value creation. The changes
we have made and those in progress
have been guided by a steadfast
commitment to our core objective
to provide a satisfactory return to
shareholders.
Through these changes, our businesses
delivered a strong financial result, with
earnings from continuing operations
and excluding significant items growing
5.2 per cent. Reported net profit after
tax reflected the trading losses and
significant items associated with
Bunnings United Kingdom and
Ireland and the sale of Homebase
in June 2018. While this was a
disappointing investment, the sale has
freed Wesfarmers of operating losses
and future capital and lease obligations,
and has strengthened the Group’s
financial position.
Bunnings in Australia and New Zealand
had another strong year, with sustained
sales momentum reflecting continued
improvement in its customer offer
through investment in price, range
and service.
Coles’ earnings were lower than the
prior year due to the annualisation of
last year’s investment in the customer
offer, one-off items in the prior year and
lower convenience earnings. It was
pleasing to see Coles deliver earnings
growth and stronger sales momentum
in the second half of the year as a result
of improvements in customer service
and retail execution.
Our Department Stores division
delivered record earnings under
Wesfarmers’ ownership, with Kmart
building on its position as a leading
global product development company
and discount retailer. Target was
able to improve earnings on the
prior year through better cost and
inventory control, as the reset of its
offer continued. Trading conditions for
Target remain challenging and this was
reflected in the non-cash impairment
recognised during the year.
Officeworks continues to build on its
strong and consistent performance
with another positive result. It
is investing in and improving its
sophisticated omni-channel customer
offer which delivers exceptional value
and convenience to customers.
MANAGING DIRECTOR
ROB SCOTT
Wesfarmers 2018 Annual Report10BACK
Sustainability Signed
reports
Shareholder and
ASX information
Financial
statements
Directors’
report
Governance
Operating and
financial review
Overview
GUY RUSSO
CHIEF EXECUTIVE OFFICER,
DEPARTMENT STORES AND
MANAGING DIRECTOR, TARGET*
Guy joined Wesfarmers in 2008 as Managing
Director of Kmart, and was appointed Chief
Executive Officer of the Department Stores
division in February 2016 and Managing Director,
Target in April 2016. Prior to this, Guy worked for
McDonald’s, beginning his career in 1974. He was
appointed Managing Director and Chief Executive
Officer at McDonald’s Australia from 1999 before
becoming President, McDonald’s Greater China
from 2005 to 2007. He is currently on the Board of
Guzman y Gomez and is President of global non-
profit, OneSky, for orphaned and at-risk children.
*Guy retired as Managing Director, Target on
14 August 2018 and will retire as Chief Executive
Officer, Department Stores on 1 November 2018,
when he will transition to the role of Senior
Advisor.
IAN BAILEY
MANAGING DIRECTOR,
KMART*
Ian was appointed Managing Director, Kmart
in February 2016 following the creation of the
Department Stores division. Prior to this, Ian
was Chief Operating Officer, Kmart where he
was instrumental in Kmart’s turnaround. Ian’s
experience covers a number of industries
including retail, professional services, consulting,
technology and healthcare in positions that
include general management, sales, business
development and project management. Ian holds
a Bachelor of Science degree in Civil Engineering
and has completed the Advanced Management
Program at Harvard Business School.
*Ian will assume the additional responsibility for
leading the Department Stores division from
1 November 2018.
DAVID BAXBY
MANAGING DIRECTOR,
WESFARMERS INDUSTRIALS
David commenced as Managing Director,
Wesfarmers Industrials in August 2017. Prior to
this, he was President and Chief Executive Officer
of international shopping transaction processing
business, Global Blue. From 2004, David held a
number of commercial and leadership roles within
the Virgin Group, and was Co-Chief Executive
Officer from 2011 to 2014. Earlier in his career,
David was a Partner and Executive Director of
Goldman Sachs in both London and Sydney. David
was formerly Chairman of Frontier Digital Ventures,
and a director of Virgin Australia, Velocity Frequent
Flyer, Unlockd and Workpac Limited.
ED BOSTOCK
MANAGING DIRECTOR,
BUSINESS DEVELOPMENT,
WESFARMERS
Ed joined Wesfarmers in October 2017 as
Managing Director, Business Development. Prior
to joining Wesfarmers, he was a Director in the
Private Equity team at the global investment firm
Kohlberg, Kravis & Roberts from July 2007 where
his focus was on private equity investment in
Australia and New Zealand. From August 2004,
Ed worked at Pacific Equity Partners as an
Associate Director. He has a Bachelor of Science
from the University of Melbourne.
LINDA KENYON
COMPANY SECRETARY,
WESFARMERS
Linda was appointed Company Secretary of
Wesfarmers in April 2002 and is also company
secretary of a number of Wesfarmers Group
subsidiaries. Linda joined Wesfarmers in 1987 as
legal counsel and held that position until 2000 when
she was appointed Manager of the responsible
entity for the listed BWP Trust (formerly Bunnings
Warehouse Property Trust). She holds Bachelor of
Jurisprudence and Bachelor of Laws degrees from
The University of Western Australia and is a Fellow
of the Governance Institute of Australia.
ALAN CARPENTER
EXECUTIVE GENERAL MANAGER,
CORPORATE AFFAIRS,
WESFARMERS*
Alan joined Wesfarmers as Executive General
Manager, Corporate Affairs in December 2009.
Prior to that he was Premier of Western Australia
from January 2006 to September 2008 and served
13 years in the Western Australian Parliament. Alan
has also worked as a journalist with the Seven
Network and the ABC and lectured in Australian
politics at the University of Notre Dame, Fremantle.
*Alan transitioned to the role of Senior Advisor in
August 2018 and will retire in December 2018.
NAOMI FLUTTER
EXECUTIVE GENERAL MANAGER,
CORPORATE AFFAIRS,
WESFARMERS
Naomi joined Wesfarmers as Executive General
Manager, Corporate Affairs in August 2018.
Prior to that she worked for Deutsche Bank for
20 years, most recently as the head of the Global
Transaction Banking division for Australia and
New Zealand. Naomi has honours degrees in
Economics and Law from the Australian National
University and a Masters of Public Policy from
Harvard University’s John F Kennedy School of
Government.
JENNY BRYANT
CHIEF HUMAN
RESOURCES OFFICER,
WESFARMERS
Jenny was appointed as Chief Human Resources
Officer in October 2016 and leads the Wesfarmers
Advanced Analytics team in addition to her human
resources responsibilities. She joined Wesfarmers
in 2011 as the Human Resources Director for Coles
and held this role until 2015 when she took on the
role of Business Development Director, Coles.
Her previous work experience encompasses Mars,
Vodafone and EMI Music in a number of global
roles in operations, sales and marketing and
human resources.
Wesfarmers 2018 Annual Report 13Overview
LEADERSHIP
TEAM
ROB SCOTT
MANAGING DIRECTOR,
WESFARMERS
Rob was appointed Managing Director of
Wesfarmers in November 2017 following his
appointment as Deputy Chief Executive Officer in
February 2017. Rob joined Wesfarmers in 1993,
before moving into investment banking, where he
held various roles in Australia and Asia. He rejoined
Wesfarmers in Business Development in 2004,
was appointed Managing Director of Wesfarmers
Insurance in 2007 and then Finance Director of
Coles in 2013. Rob was appointed Managing
Director, Financial Services in 2014 and then
Managing Director of the Wesfarmers Industrials
division from August 2015 until August 2017.
ANTHONY GIANOTTI
CHIEF FINANCIAL OFFICER,
WESFARMERS
Anthony was appointed Chief Financial Officer
of Wesfarmers in November 2017 following his
appointment as Deputy Chief Financial Officer
in July 2017. Anthony joined Wesfarmers in
2004 in Business Development and in 2005
became Manager, Investor Relations and
Business Projects. In 2006, he was appointed
Head of Business Development and Strategy of
Wesfarmers Insurance, then Finance Director
in 2009 and Managing Director in 2013. In
August 2015, he was appointed Finance Director
of the Wesfarmers Industrials division and its
Deputy Managing Director in February 2017.
MAYA VANDEN DRIESEN
GROUP GENERAL COUNSEL,
WESFARMERS
Maya was appointed Group General Counsel of
Wesfarmers in January 2015. Prior to this, Maya
held a number of senior roles in the company
including Legal Counsel – Litigation, Senior Legal
Counsel and General Manager Legal – Litigation.
Maya holds Bachelor of Jurisprudence and
Bachelor of Laws degrees from The University of
Western Australia and was admitted to practise
as a barrister and solicitor in 1990. Prior to joining
Wesfarmers, Maya practised law at Parker & Parker
and Downings Legal.
MICHAEL SCHNEIDER
MANAGING DIRECTOR,
BUNNINGS GROUP
Michael was appointed Managing Director,
Bunnings Australia and New Zealand in
March 2016 and Managing Director, Bunnings
Group in May 2017. Michael joined Bunnings in
2005, and prior to that he held a range of senior
operational, commercial and human resource roles
across regional and national markets, both in retail
and financial services. Michael holds a Bachelor
of Arts degree from the University of NSW and has
completed the Advanced Management Program at
INSEAD, and the Advanced Strategic Management
Program at IMD.
JOHN DURKAN
MANAGING DIRECTOR,
COLES*
John was appointed Managing Director of Coles in
July 2014 and he will transition to a senior advisor
role with the Group in September 2018. John
joined Coles in July 2008 as Merchandise Director
and was subsequently appointed Chief Operating
Officer in June 2013. He brings a wealth of
customer, product and buying knowledge having
worked for 17 years with Safeway Stores plc
and as the Chief Operating Officer for Carphone
Warehouse in the United Kingdom.
* John will retire as Managing Director, Coles in
mid-September 2018, and transition to the role of
Senior Advisor.
Wesfarmers 2018 Annual Report12BACK
reports
Shareholder and
ASX information
Financial
statements
Directors’
report
Governance
Operating and
financial review
Overview
GUY RUSSO
CHIEF EXECUTIVE OFFICER,
DEPARTMENT STORES AND
MANAGING DIRECTOR, TARGET*
Guy joined Wesfarmers in 2008 as Managing
Director of Kmart, and was appointed Chief
Executive Officer of the Department Stores
division in February 2016 and Managing Director,
Target in April 2016. Prior to this, Guy worked for
McDonald’s, beginning his career in 1974. He was
appointed Managing Director and Chief Executive
Officer at McDonald’s Australia from 1999 before
becoming President, McDonald’s Greater China
from 2005 to 2007. He is currently on the Board of
Guzman y Gomez and is President of global non-
profit, OneSky, for orphaned and at-risk children.
*Guy retired as Managing Director, Target on
14 August 2018 and will retire as Chief Executive
Officer, Department Stores on 1 November 2018,
when he will transition to the role of Senior
Advisor.
IAN BAILEY
MANAGING DIRECTOR,
KMART*
Ian was appointed Managing Director, Kmart
in February 2016 following the creation of the
Department Stores division. Prior to this, Ian
was Chief Operating Officer, Kmart where he
was instrumental in Kmart’s turnaround. Ian’s
experience covers a number of industries
including retail, professional services, consulting,
technology and healthcare in positions that
include general management, sales, business
development and project management. Ian holds
a Bachelor of Science degree in Civil Engineering
and has completed the Advanced Management
Program at Harvard Business School.
*Ian will assume the additional responsibility for
leading the Department Stores division from
1 November 2018.
DAVID BAXBY
MANAGING DIRECTOR,
WESFARMERS INDUSTRIALS
David commenced as Managing Director,
Wesfarmers Industrials in August 2017. Prior to
this, he was President and Chief Executive Officer
of international shopping transaction processing
business, Global Blue. From 2004, David held a
number of commercial and leadership roles within
the Virgin Group, and was Co-Chief Executive
Officer from 2011 to 2014. Earlier in his career,
David was a Partner and Executive Director of
Goldman Sachs in both London and Sydney. David
was formerly Chairman of Frontier Digital Ventures,
and a director of Virgin Australia, Velocity Frequent
Flyer, Unlockd and Workpac Limited.
ED BOSTOCK
MANAGING DIRECTOR,
BUSINESS DEVELOPMENT,
WESFARMERS
Ed joined Wesfarmers in October 2017 as
Managing Director, Business Development. Prior
to joining Wesfarmers, he was a Director in the
Private Equity team at the global investment firm
Kohlberg, Kravis & Roberts from July 2007 where
his focus was on private equity investment in
Australia and New Zealand. From August 2004,
Ed worked at Pacific Equity Partners as an
Associate Director. He has a Bachelor of Science
from the University of Melbourne.
LINDA KENYON
COMPANY SECRETARY,
WESFARMERS
Linda was appointed Company Secretary of
Wesfarmers in April 2002 and is also company
secretary of a number of Wesfarmers Group
subsidiaries. Linda joined Wesfarmers in 1987 as
legal counsel and held that position until 2000 when
she was appointed Manager of the responsible
entity for the listed BWP Trust (formerly Bunnings
Warehouse Property Trust). She holds Bachelor of
Jurisprudence and Bachelor of Laws degrees from
The University of Western Australia and is a Fellow
of the Governance Institute of Australia.
ALAN CARPENTER
EXECUTIVE GENERAL MANAGER,
CORPORATE AFFAIRS,
WESFARMERS*
Alan joined Wesfarmers as Executive General
Manager, Corporate Affairs in December 2009.
Prior to that he was Premier of Western Australia
from January 2006 to September 2008 and served
13 years in the Western Australian Parliament. Alan
has also worked as a journalist with the Seven
Network and the ABC and lectured in Australian
politics at the University of Notre Dame, Fremantle.
*Alan transitioned to the role of Senior Advisor in
August 2018 and will retire in December 2018.
NAOMI FLUTTER
EXECUTIVE GENERAL MANAGER,
CORPORATE AFFAIRS,
WESFARMERS
Naomi joined Wesfarmers as Executive General
Manager, Corporate Affairs in August 2018.
Prior to that she worked for Deutsche Bank for
20 years, most recently as the head of the Global
Transaction Banking division for Australia and
New Zealand. Naomi has honours degrees in
Economics and Law from the Australian National
University and a Masters of Public Policy from
Harvard University’s John F Kennedy School of
Government.
JENNY BRYANT
CHIEF HUMAN
RESOURCES OFFICER,
WESFARMERS
Jenny was appointed as Chief Human Resources
Officer in October 2016 and leads the Wesfarmers
Advanced Analytics team in addition to her human
resources responsibilities. She joined Wesfarmers
in 2011 as the Human Resources Director for Coles
and held this role until 2015 when she took on the
role of Business Development Director, Coles.
Her previous work experience encompasses Mars,
Vodafone and EMI Music in a number of global
roles in operations, sales and marketing and
human resources.
Wesfarmers 2018 Annual Report 13Overview
LEADERSHIP
TEAM
ROB SCOTT
MANAGING DIRECTOR,
WESFARMERS
Rob was appointed Managing Director of
Wesfarmers in November 2017 following his
appointment as Deputy Chief Executive Officer in
February 2017. Rob joined Wesfarmers in 1993,
before moving into investment banking, where he
held various roles in Australia and Asia. He rejoined
Wesfarmers in Business Development in 2004,
was appointed Managing Director of Wesfarmers
Insurance in 2007 and then Finance Director of
Coles in 2013. Rob was appointed Managing
Director, Financial Services in 2014 and then
Managing Director of the Wesfarmers Industrials
division from August 2015 until August 2017.
ANTHONY GIANOTTI
CHIEF FINANCIAL OFFICER,
WESFARMERS
Anthony was appointed Chief Financial Officer
of Wesfarmers in November 2017 following his
appointment as Deputy Chief Financial Officer
in July 2017. Anthony joined Wesfarmers in
2004 in Business Development and in 2005
became Manager, Investor Relations and
Business Projects. In 2006, he was appointed
Head of Business Development and Strategy of
Wesfarmers Insurance, then Finance Director
in 2009 and Managing Director in 2013. In
August 2015, he was appointed Finance Director
of the Wesfarmers Industrials division and its
Deputy Managing Director in February 2017.
MAYA VANDEN DRIESEN
GROUP GENERAL COUNSEL,
WESFARMERS
Maya was appointed Group General Counsel of
Wesfarmers in January 2015. Prior to this, Maya
held a number of senior roles in the company
including Legal Counsel – Litigation, Senior Legal
Counsel and General Manager Legal – Litigation.
Maya holds Bachelor of Jurisprudence and
Bachelor of Laws degrees from The University of
Western Australia and was admitted to practise
as a barrister and solicitor in 1990. Prior to joining
Wesfarmers, Maya practised law at Parker & Parker
and Downings Legal.
MICHAEL SCHNEIDER
MANAGING DIRECTOR,
BUNNINGS GROUP
Michael was appointed Managing Director,
Bunnings Australia and New Zealand in
March 2016 and Managing Director, Bunnings
Group in May 2017. Michael joined Bunnings in
2005, and prior to that he held a range of senior
operational, commercial and human resource roles
across regional and national markets, both in retail
and financial services. Michael holds a Bachelor
of Arts degree from the University of NSW and has
completed the Advanced Management Program at
INSEAD, and the Advanced Strategic Management
Program at IMD.
JOHN DURKAN
MANAGING DIRECTOR,
COLES*
John was appointed Managing Director of Coles in
July 2014 and he will transition to a senior advisor
role with the Group in September 2018. John
joined Coles in July 2008 as Merchandise Director
and was subsequently appointed Chief Operating
Officer in June 2013. He brings a wealth of
customer, product and buying knowledge having
worked for 17 years with Safeway Stores plc
and as the Chief Operating Officer for Carphone
Warehouse in the United Kingdom.
* John will retire as Managing Director, Coles in
mid-September 2018, and transition to the role of
Senior Advisor.
Wesfarmers 2018 Annual Report12BACK
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