AGM 2011
24 November 2011
JAMES STRONG
JAMES STRONG Chairman
1
DIVIDENDS PER SHARE ‐ UP 6.1%
Cents
Ç6 1%
Ç6.1%
Ç10.6%
Ç13.0%
Final Dividend 2011: 65¢
Ç24.3%
FY1
11
FY1
10
FY0
09
FY0
08
FY0
07
Ç25.4%
2
Dividend pay‐out ratio of 70% is
ratio of 70% is in line with the previous year
Interim Dividend 2011: 57¢
EARNINGS PER SHARE ‐ UP 6.5%
Cents
190.0
174 6
174.6
164.0
170.0
150.7
150.0
134.9
130.0
3
FYY11
FYY10
Ç19.7%
FYY09
70.0
Ç11.7%
108.8
FY
Y08
90.0
Ç8.8%
Ç24.0%
FYY07
110 0
110.0
Ç6.5%
JAMES STRONG
JAMES STRONG Chairman
4
GRANT O’BRIEN
GRANT O’BRIEN Chief Executive Officer
Chief 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 p
prices for customers
• Increased focus on meeting customers’ needs through improved ranges, new formats, lower prices and multi‐channel shopping
• SStrong balance sheet, generating higher cash flows and returning more capital to b l
h
i hi h
h fl
d
i
i l
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
1. Reflects growth normalised to remove the impact of the 53rd week in FY08
7
FY11
1
FY10
0
9
FY09
↑12.8%
FY09
9
Stat
8
FY08
FY08
8
Stat
FY07
7
1
EBIT — UP 6.3% (7.5% EXCL NATURAL DISASTER COSTS)
$ million
TTotal l
Group EBIT
Ç7.5%
FY08
FY11
FY10
Ç24 2%
Ç24.2%
1. Reflects growth normalised to remove the impact of the 53rd week in FY08
8
Ç17.4%
FY09
Ç17.5%
Ç15.1%
FY09
Stat
Ç19.8%
FY08
Stat
Ç12.9%
FY07
EBIT growth underpinned by solid
by solid growth in Australian Food and Liquor
Australian F d d
Food and Liquor EBIT
CODB / SALES
Percentage
9
FY11
FY10
FY09
FY08
FY07
In a deflationary environment environment
CODB was well controlled
GROSS PROFIT MARGIN
10
Percentage
Total GP Margin
FFY11
FFY10
FFY09
FFY08
GP Margin ex Hotels
FFY07
Gross margins for the G
Group have h
increased 12bps reflecting the benefits of global
benefits of global buying, the use of distribution centres in liquor improved
in liquor, improved shrinkage rates, higher sales of exclusive brand
exclusive brand products and the success of new store formats whilst delivering lower prices to customers
SHAREHOLDER PAYOUTS
Estimated franking credits available for distribution (after final dividend) = $1,228m
$ million
Dividend
Buy‐Back
2,191
1,749
704
325
1,424
1,487
1,280
941
FY11
FY10
FY04
FY09
FY03
538
FY08
463
FY07
407
693
FY06
346
FY02
141
11
894
604
FY05
534
1,121
Profit growth, coupled with good balance sheet management, will have delivered over $10.3 billion payout to shareholders
shareholders since July 2001
CORPORATE RESPONSIBILITY REVIEW
12
CORPORATE RESPONSIBILITY REVIEW CO2 REDUCTION ON TRACK
ON TRACK 13
37 ENERGY SAVING INITIATIVES IN 2011
IN 2011
GOOD PROGRESS IN
ETHICAL SOURCING
ETHICAL SOURCING
CORPORATE RESPONSIBILITY REVIEW $62.3m COMMUNITY INVESTMENT 14
RECONCILIATION ACTION PLAN LAUNCH 30% REDUCTION IN LTIFR
MY STRATEGIC PRIORITIES
1
3
15
EXTEND AND DEFEND LEADERSHIP IN FOOD AND LIQUOR
MAINTAIN OUR TRACK RECORD OF BUILDING NEW GROWTH
NEW GROWTH BUSINESSES
2
4
ACT ON OUR PORTFOLIO TO MAXIMISE
MAXIMISE SHAREHOLDER VALUE
PUT IN PLACE THE ENABLERS FOR A NEW
ENABLERS FOR A NEW ERA OF GROWTH
UNLOCK SALES GROWTH
ACCELERATE FRESH LEADERSHIP
EXTEND AND DEFEND
EXTEND LIQUOR LEADERSHIP
16
LEADERSHIP
IN FOOD AND LIQUOR
BECOME #1 IN NEW ZEALAND
ALIGN OFFER TO NEW CUSTOMER REALITY
ACT ON PORTFOLIO TO
MAXIMISE
SHAREHOLDER VALUE
MOST RESPONSIBLE PUB OPERATOR
REVIEW OF DICK SMITH
17
SCALE‐UP HOME IMPROVEMENT
LEADER IN
MULTI‐CHANNEL
MULTI
CHANNEL RETAILING
RETAILING
MAINTAIN TRACK
MAINTAIN
TRACK
RECORD OF
BUILDING
NEW BUSINESSES
CONSIDER INTERNATIONAL GROWTH
18
NEXT STEP‐CHANGE IN SUPPLY CHAIN
CONTINUED COST REDUCTION
LEVERAGING CUSTOMER DATA
PUT IN PLACE PUT IN
PLACE
ENABLERS FOR
A NEW ERA OF GROWTH
STRONG CAPITAL INVESTMENT
19
BEST RETAIL TALENT
MY STRATEGIC PRIORITIES
1
3
20
EXTEND AND DEFEND LEADERSHIP IN FOOD AND LIQUOR
MAINTAIN OUR TRACK RECORD OF BUILDING NEW GROWTH
NEW GROWTH BUSINESSES
2
4
ACT ON OUR PORTFOLIO TO MAXIMISE
MAXIMISE SHAREHOLDER VALUE
PUT IN PLACE THE ENABLERS FOR A NEW
ENABLERS FOR A NEW ERA OF GROWTH
JAMES STRONG
JAMES STRONG Chairman
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
please
l
d
do so now
Make sure the arrows at the bottom of the
smartcard are inserted
and facing you
22
HOW TO VOTE
Insert the smartcard up to the red
line. A welcome message will
appear when the card is inserted
correctly
23
HOW TO VOTE
When the poll opens,
opens the handset will display
the voting options being
1 to vote FOR the resolution
2 to vote AGAINST the resolution
3 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 the
handset
“Received”
Received will appear on your handset to
indicate your vote has counted
If you wish
i h to
t change
h
your mind,
i d simply
i l
enter your new choice
25
HOW TO VOTE
If you accidentally dislodge the smartcard
a warning will appear on your screen and
you may need to push the smartcard back
into the handset
26
HOW TO VOTE
When the poll opens,
opens the handset will display
the voting options being
1 to vote FOR the resolution
2 to vote AGAINST the resolution
3 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
y
votes were split at registration
27
HOW TO VOTE Please 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
without
ith t returning
t i th
the h
handset
d t and
d smartcard
t d
28
HOW TO VOTE
If 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 you
Thank you for your attention
29
SHAREHOLDER QUESTIONS
SHAREHOLDER QUESTIONS
30
1 FINANCIAL STATEMENTS
1. FINANCIAL STATEMENTS 31
2 REMUNERATION REPORT
2. REMUNERATION REPORT 32
RESOLUTION 2 – REMUNERATION REPORT 33
For
398,303,362
79.86%
Against 81,565,597
16.35%
O
Open
18,897,891
3.79%
3 ELECTION OF DIRECTORS
3. ELECTION OF DIRECTORS 34
RODERICK DEANE
35
RESOLUTION 3(A) – ELECTION OF DIRECTORS
RODERICK DEANE
RODERICK DEANE
36
For
487,746,217
94.47%
Against 8,711,542
1.69%
O
Open
19,814,324
3.84%
JILLIAN BROADBENT
37
RESOLUTION 3(B) – ELECTION OF DIRECTORS
JILLIAN BROADBENT
JILLIAN BROADBENT 38
For
493,808,506
95.66%
Against 2,607,092
0.51%
O
Open
19,807,428
3.84%
RALPH WATERS
39
RESOLUTION 3(C) – ELECTION OF DIRECTORS
RALPH WATERS
RALPH WATERS 40
For
492,770,129
95.48%
Against 3,405,300
0.66%
O
Open
19,914,605
3.86%
4 LONG TERM INCENTIVE PLAN
4. LONG TERM INCENTIVE PLAN 41
RESOLUTION 4 – LONG TERM INCENTIVE PLAN 42
For
448,627,705
87.11%
Against 47,602,830
9.24%
O
Open
18,773,517
3.65%
AGM 2011
24 November 2011