Wesfarmers (WES) Strategy Briefing Day 2025 summary

Strategic Direction and Portfolio Evolution

• Focus on delivering top quartile total shareholder returns, with a 5-year TSR of 20.6% versus index 12.4%, and return on equity rising from 9.8% in 2015 to 31.2% in 2025.

• Portfolio strengthened through exits from lower-growth businesses, operating excellence, and expansion into health, lithium, and digital.

• Major investments in digital, data, and omnichannel capabilities are now entering a phase of benefit realization, supporting growth and efficiency.

• Divisional autonomy, financial discipline, and a strong balance sheet underpin the ability to invest through cycles and pursue value-accretive opportunities.

• New growth platforms in health, lithium, and data are expected to contribute meaningfully over the next five to ten years.

Capital Allocation and Financial Outlook

• Over AUD 5 billion invested in core businesses over five years, with additional hundreds of millions in digital and data platforms.

• Capital allocation guided by strict investment criteria, with a preference for incremental investment in existing businesses and selective M&A.

• Current net CapEx guidance is AUD 1.1–1.3 billion, trending to the lower end due to timing; major projects include new fulfillment centers and store renewals.

• Strong balance sheet (1.7x debt/EBITDA vs. 2.75x target), investment-grade credit ratings, and $1.1b in unused bank facilities provide capacity for investment and potential capital returns.

• One-off items in FY2024 include costs for Catch wind-down, gains from BPI property structure, and expected profit from Coregas sale.

Growth and Productivity Initiatives

• Retail divisions are expanding addressable markets through new categories, store formats, and digital engagement.

• Omnichannel and marketplace strategies are being scaled, with curated third-party offers and integrated customer experiences.

• Supply chain modernization, automation, and central fulfillment centers are key to improving efficiency and customer experience.

• Productivity gains targeted through generative AI, data-driven personalization, and ongoing cost discipline, with a focus on reinvesting savings into customer value.

• Divisions are leveraging loyalty programs and retail media to drive incremental sales and new high-margin revenue streams.