AGM   2011

24 November 2011

JAMES STRONGJAMES STRONG ChairmanChairman

1

DIVIDENDS PER SHARE ‐ UP 6.1%

Cents

Dividend pay‐out ratio of 70% is6 1% ratio of 70% is in line with the previous year

13.0%

10.6%

6.1%

Final Dividend 2011: 65¢

24.3%

13.0%

Interim Dividend 2011: 57¢07 08 09 10 11

25.4%

FY0

FY0

FY0

FY1

FY1

2

EARNINGS PER SHARE ‐ UP 6.5%

Cents

174 6190.0

150.7

164.0174.6

150.0

170.08.8%

6.5%

108.8

134.9

110 0

130.0

150.0

24.0%

11.7%

90.0

110.0

Y08

Y11

Y10

Y09

Y07

19.7%

70.0

FY FYFYFYFY

3

JAMES STRONGJAMES STRONG ChairmanChairman

4

GRANT O’BRIENGRANT O’BRIEN Chief Executive OfficerChief Executive Officer

5

HIGHLIGHTS — FINANCIAL YEAR 2011

• Positive overall result given challenging macro economic conditions and devastating natural disasters

• Increase in NPAT of 5.1% or 6.4% excluding natural disaster costs

• Increase in market share, sales and profits whilst investing significantly in reducing prices for customersp

• Increased focus on meeting customers’ needs through improved ranges, new formats, lower prices and multi‐channel shopping

S b l h i hi h h fl d i i l• Strong balance sheet, generating higher cash flows and returning more capital to shareholders through increased dividends and a share buyback

• Solid financial position, cash flow and credit rating strength positions us well for continued investment, capital management and growth

• Sustainable long‐term profitable growth to deliver superior value to customers and shareholders through all economic cycles

6

PROFIT AFTER TAX —UP 5.1% (6.4% EXCL NATURAL DISASTER COSTS)

$ million$ million

1

↑12.8%1

7 8 8 0 19 9

FY07

FY08

Sta

t

FY08

FY10

FY11

FY09

Sta

t

FY09

7

1.  Reflects growth normalised to remove the impact of the 53rd week in FY08

EBIT — UP 6.3% (7.5% EXCL NATURAL DISASTER COSTS)

$ million

T lEBIT growth underpinned 

by solidAustralian F d d

Total Group EBIT

7.5%by solid growth in Australian 

Food and Liquor EBIT

24 2%

19.8%

15.1% 17.4%

17.5%

12.9%

Food and Liquor

24.2%

FY07

FY08

Stat

FY09

Stat

FY08

FY09

FY10

FY11

8

1.  Reflects growth normalised to remove the impact of the 53rd week in FY08

CODB / SALES

Percentage

In a deflationary environmentenvironment CODB was 

well Y07

Y08

Y09

Y10

Y11

controlledF F F F F

9

GROSS PROFIT MARGIN

Gross margins for the G h

PercentageGroup have 

increased 12bps reflecting the 

benefits of globalTotal 

GP Margin

benefits of global buying, the use of distribution centres in liquor improved

GP Margin ex Hotels

in liquor, improved shrinkage rates, higher sales of exclusive brandexclusive brand products and the 

success of new store formats whilst  FY

07

FY08

FY09

FY10

FY11

delivering lower prices to customers

F F F F F

10

SHAREHOLDER PAYOUTS

$ million

Estimated franking credits available for distribution (after final dividend) = $1,228m

2,191 Profit growth, Buy‐Back

Dividend

325

7041,749

coupled with good 

balance sheet 

1,2801,424 1,487

941

management, will have 

delivered over 

693

894

1,121

534141

941

604

$10.3 billion payout to 

shareholders346 407 463

538141

FY11

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

shareholders since July 2001

FY02

11

CORPORATE RESPONSIBILITY REVIEW

12

CORPORATE RESPONSIBILITY REVIEW 

CO2 REDUCTION ON TRACK

37 ENERGY SAVING INITIATIVES IN 2011

GOOD PROGRESS INETHICAL SOURCINGON TRACK  INITIATIVES IN 2011 ETHICAL SOURCING

13

CORPORATE RESPONSIBILITY REVIEW 

$62.3m COMMUNITY INVESTMENT 

RECONCILIATION ACTION PLAN LAUNCH 

30% REDUCTION IN LTIFR

14

MY STRATEGIC PRIORITIES

1 21 2 ACT ON OUR PORTFOLIO TO MAXIMISE

EXTEND AND DEFEND LEADERSHIP IN FOOD 

MAXIMISE SHAREHOLDER VALUE

AND LIQUOR

3 43 MAINTAIN OUR TRACK RECORD OF BUILDING 

NEW GROWTH4 PUT IN PLACE THE 

ENABLERS FOR A NEWNEW GROWTH BUSINESSES

ENABLERS FOR A NEW ERA OF GROWTH

15

UNLOCK SALES GROWTH ACCELERATE FRESH LEADERSHIP

LEADERSHIPEXTEND AND DEFEND

LEADERSHIPIN FOOD AND LIQUOR

EXTEND LIQUOR LEADERSHIP

BECOME #1 IN NEW ZEALAND

16

ALIGN OFFER TO NEW CUSTOMER REALITY

MAXIMISEACT ON PORTFOLIO TO

MAXIMISESHAREHOLDER VALUE

MOST RESPONSIBLE PUB OPERATOR

17

REVIEW OF DICK SMITH

SCALE‐UP HOME IMPROVEMENTLEADER INMULTI‐CHANNEL RETAILINGMULTI CHANNEL RETAILING

MAINTAIN TRACK

BUILDING

MAINTAIN TRACKRECORD OF

BUILDINGNEW BUSINESSES

18

CONSIDER INTERNATIONAL GROWTH

NEXT STEP‐CHANGE IN SUPPLY CHAIN CONTINUED COST REDUCTION

LEVERAGING CUSTOMER DATA

PUT IN PLACE

ENABLERSPUT IN PLACE 

FORA NEW ERA OF GROWTH

STRONG CAPITAL INVESTMENT BEST RETAIL TALENT

19

MY STRATEGIC PRIORITIES

1 21 2 ACT ON OUR PORTFOLIO TO MAXIMISE

EXTEND AND DEFEND LEADERSHIP IN FOOD 

MAXIMISE SHAREHOLDER VALUE

AND LIQUOR

3 43 MAINTAIN OUR TRACK RECORD OF BUILDING 

NEW GROWTH4 PUT IN PLACE THE 

ENABLERS FOR A NEWNEW GROWTH BUSINESSES

ENABLERS FOR A NEW ERA OF GROWTH

20

JAMES STRONGJAMES STRONG ChairmanChairman

21

HOW TO VOTE

The smartcard should have been inserted into your handset when you registered for the AGM

If the smartcard is not inserted into your handset l dplease do so now

Make sure the arrows at the bottom of the smartcard are insertedsmartcard are inserted and facing you

22

HOW TO VOTE

Insert the smartcard up to the redInsert the smartcard up to the red line. A welcome message will appear when the card is inserted correctlycorrectly

23

HOW TO VOTE

When the poll opens the handset will displayWhen the poll opens, the handset will display the voting options being

1 to vote FOR the resolution1 to vote FOR the resolution2 to vote AGAINST the resolution3 to ABSTAIN or WITHHOLD your vote

Press the appropriate button on the handset to register your intentions

24

HOW TO VOTE

Your voting instruction will appear on theYour voting instruction will appear on the handset

“Received” will appear on your handset toReceived will appear on your handset to indicate your vote has counted

If i h t h i d i lIf you wish to change your mind, simply enter your new choice

25

HOW TO VOTE

If you accidentally dislodge the smartcardIf you accidentally dislodge the smartcard a warning will appear on your screen and you may need to push the smartcard back into the handsetinto the handset

26

HOW TO VOTE

When the poll opens the handset will displayWhen the poll opens, the handset will display the voting options being

1 to vote FOR the resolution1 to vote FOR the resolution2 to vote AGAINST the resolution3 to ABSTAIN or WITHHOLD your vote

This will vote your open votes only, directed votes will go through automatically when you select one of the 3 options

Press the blue button if your yvotes were split at registration

27

HOW TO VOTE  

Please leave the handset and smartcard onPlease leave the handset and smartcard on your seat or hand them to a member of staff as you leave the room

The handset has a built in alarm that will sound if you inadvertently leave the building

ith t t i th h d t d t dwithout returning the handset and smartcard

28

HOW TO VOTE

If you have any questions or issues inIf you have any questions or issues in using the handset please raise your hand and one of the attendants in the auditorium will be able to assist youauditorium will be able to assist you

Thank you for your attention

29

SHAREHOLDER QUESTIONSSHAREHOLDER QUESTIONS

30

1 FINANCIAL STATEMENTS1.  FINANCIAL STATEMENTS  

31

2 REMUNERATION REPORT2.  REMUNERATION REPORT  

32

RESOLUTION 2 – REMUNERATION REPORT  

398,303,362 79.86%For

81,565,597 16.35%Against 

O 18,897,891 3.79%Open

33

3 ELECTION OF DIRECTORS3.  ELECTION OF DIRECTORS  

34

RODERICK DEANE

35

RESOLUTION 3(A) – ELECTION OF DIRECTORSRODERICK DEANERODERICK DEANE

487,746,217 94.47%For

8,711,542 1.69%Against 

O 19,814,324 3.84%Open

36

JILLIAN BROADBENT

37

RESOLUTION 3(B) – ELECTION OF DIRECTORSJILLIAN BROADBENTJILLIAN BROADBENT 

493,808,506 95.66%For

2,607,092 0.51%Against 

O 19,807,428 3.84%Open

38

RALPH WATERS

39

RESOLUTION 3(C) – ELECTION OF DIRECTORSRALPH WATERSRALPH WATERS 

492,770,129 95.48%For

3,405,300 0.66%Against 

O 19,914,605 3.86%Open

40

4 LONG TERM INCENTIVE PLAN4.  LONG TERM INCENTIVE PLAN  

41

RESOLUTION 4 – LONG TERM INCENTIVE PLAN 

448,627,705 87.11%For

47,602,830 9.24%Against 

O 18,773,517 3.65%Open

42

AGM   2011

24 November 2011