Wesfarmers : 2020 AGM Chairman's Address and Managing Director's Address

12 November 2020

The Manager

Market Announcements Office

Australian Securities Exchange

Dear Manager,

CHAIRMAN'S ADDRESS AND MANAGING DIRECTOR'S ADDRESS

TO WESFARMERS VIRTUAL ANNUAL GENERAL MEETING

THURSDAY 12 NOVEMBER 2020, 1:00PM PERTH TIME

In accordance with Listing Rule 3.13.3, attached is a copy of the Chairman's Address and Managing Director's Address to be delivered today at the 2020 Annual General Meeting.

Authorised to be given to the ASX by:

Vicki Robinson

Executive General Manager

Company Secretariat

WESFARMERS 2020 ANNUAL GENERAL MEETING

CHAIRMAN'S ADDRESS AND MANAGING DIRECTOR'S ADDRESS

CHAIRMAN'S ADDRESS

Good afternoon everyone and welcome to this meeting. I am Michael Chaney, Chairman of Wesfarmers.

I am advised that we have a quorum present and I now officially open the 39th annual general meeting for Wesfarmers Limited.

Can I start by thanking Dr Richard Walley OAM on his Welcome to Country on behalf of the Noongar people, the traditional owners of the part of Australia from which I am joining you today, and pay my respects to their elders, past and present.

And thank you to everyone who has joined today's meeting, our first virtual AGM.

Life for all of us changed dramatically in early 2020. At all times since the commencement of the COVID-19 pandemic, Wesfarmers has been focused on the health, safety and wellbeing of its team members, customers and the communities in which we operate. Accordingly, like many other companies, we decided that the appropriate approach in the current circumstances was to hold our 2020 annual general meeting online or virtually, rather than at a physical venue.

While the Wesfarmers Board and executive Leadership Team are disappointed that we're not meeting with our shareholders in the usual way for this meeting, we have done our best to ensure that we provide you with the same opportunity to participate as if we could all meet together in person (except for the food and drink, of course), and we're very pleased to be able to welcome a number of shareholders who may not have previously had an opportunity to participate in our AGMs.

In response to a large number of shareholder queries received in relation to the format of next year's AGM, we expect to be able to hold it physically again, but we will assess it closer to the time, as it will depend on the circumstances in light of the uncertainty around COVID-19.

I am joining you today from the Wesfarmers corporate office in Perth, along with our Managing Director, Rob Scott; our Company Secretary, Vicki Robinson; and our longest serving non-executive director, Diane Smith-Gander AO, who will chair this AGM during the consideration of my re-election.

As set out in our 2020 Notice of Meeting, Diane will retire as a director at the conclusion of this meeting and will not be seeking re-election. I will say a few words about Diane's significant contribution to Wesfarmers later in the meeting.

Joining us today from various locations around Australia and New Zealand we have the rest of Wesfarmers' independent non-executive directors and I would like to welcome: Wayne Osborn, Vanessa Wallace, Jennifer Westacott AO, Sir Bill English KNZM, Mike Roche who chairs our Remuneration Committee and Sharon Warburton who chairs our Audit and Risk Committee. While all directors are present and listening, to minimise the risk of technical issues, they won't be speaking at the meeting.

Also joining us today are: Michael Schneider, Managing Director of Bunnings Group; Ian Bailey, Managing Director of Kmart Group; Sarah Hunter, Managing Director of Officeworks; Ian Hansen, Chief Executive Officer of Wesfarmers Chemicals, Energy and Fertilisers; Tim Bult, Managing Director of Wesfarmers Industrial and Safety; and Anthony Gianotti, Chief Financial Officer, along with other members of senior management and employees from across the Wesfarmers Group.

We also have in attendance on the telephone Wesfarmers' audit partners from Ernst & Young, Trevor Hammond and Jemma Newton, who are available to answer any questions on the audit and related matters.

Wesfarmers Limited 2020 Chairman's Address and Managing Director's Address

page 2 of 8

And now onto some procedural matters. Many of our shareholders have taken the opportunity to submit their voting instructions and questions through the online voting platform, and we thank them for doing so in advance of this meeting.

As outlined in our Notice of Meeting, shareholders and proxyholders may vote and submit questions during this meeting using the Lumi AGM online platform. We have also provided shareholders and others who may not be able to participate online with the opportunity to listen to the AGM by telephone. Please note that those joining the meeting by telephone will not have the ability to vote or ask questions.

All resolutions will be decided on a poll. To provide ample opportunity for shareholders and proxyholders to submit their votes, I now open the poll on all resolutions. I will provide a reminder to submit any outstanding votes later in the meeting before the poll is closed.

I encourage shareholders and proxyholders to submit any questions as early as possible during the meeting. Consistent with the approach taken at our previous AGMs, we will respond to questions relating to a particular item of business during discussion on that item, unless these questions have already been addressed through earlier remarks. I will answer general questions at the end of the meeting. In the interests of all participants please ensure that your questions are relevant to all shareholders. If your question relates to a particular item of business, please refer to that item of business when you submit your question.

To minimise repetition and to maximise the number of questions that we can respond to during the meeting, questions may be moderated, for example by amalgamating into one question or choosing the broadest question which covers questions on the same topic. As our time is limited, it may not be possible to respond to all questions during this meeting. If this is the case, or if there are questions that might be better addressed on an individual basis, we will respond to these after the meeting.

If you wish to ask a question, press or click on the speech bubble icon, which can be found on the navigation bar on your screen. This will open a new screen. At the bottom of that new screen, there is a section for you to type in your question. Once you finish typing your question, please press the arrow symbol to submit your question.

Following our formal addresses, questions which we will take during the meeting will be read to us by an external moderator, Ruth Callaghan.

If you are eligible to vote at this meeting and have logged into the online platform, a voting icon will appear on your device or navigation bar. Selecting this icon will bring up a list of resolutions and present you with voting options. To cast your vote, simply select one of the options: for, against or abstain. There is no need to press submit or click the enter button as your vote will be automatically recorded. You may change your vote during the meeting until I declare the poll closed. Please submit your votes anytime from now until I close the poll just before the end of the meeting.

Sam Erna from Computershare will act as the Returning Officer for the purposes of conducting and determining the results of the poll on each resolution, and the results will be announced through the ASX company announcements platform later today and will also be available on the Wesfarmers website.

A user guide is available on the Wesfarmers website setting out instructions on how to submit your vote and ask questions during the meeting. If you are having any issues with the Lumi AGM online platform, please refer to the user guide or call Computershare on the number shown on the slide.

If technical difficulties arise during the course of the meeting, I will exercise my discretion as to whether and how the AGM should proceed, having regard to the extent to which participation in the business of the AGM is affected. In the case of a technical difficulty, I will endeavour to provide clear guidance as to the approach and next steps, but if this is not possible then we will make an announcement through the ASX company announcements platform and this will also be available on the Wesfarmers website.

Transcripts of my address and Rob's address are available on our website and the ASX platform. A recording of the meeting will be made available on the Wesfarmers website after the meeting.

Wesfarmers Limited 2020 Chairman's Address and Managing Director's Address

page 3 of 8

As you would be aware from the Notice of Meeting, there are five items of business to be discussed when we move into the formal proceedings; but before that, I'll make some general observations about the last 12 months and the business environment and then Rob Scott will provide us with some reflections on current trading, on our COVID-19 response and on the outlook for the Group.

It would be an understatement to say that 2020 was one of the most challenging any of us in business has faced and, indeed, one of the most challenging for Australians generally. The bushfires that ravaged large parts of the eastern states over summer, followed by the onset of the COVID-19 pandemic shortly afterwards, made all of our lives much harder. It is gratifying that your company was able to come through this in strong financial health and, equally importantly, in a position to assist those who were less fortunate. More about that in a moment.

Details of the financial results for 2020 are contained in our Annual Report and I do not propose to repeat all of that here.

As has been the case in recent years, the bottom-line profit figure was affected by a number of significant, non-operating items but the most important profit figure for us is how much the Group earned from continuing operations. That rose eight per cent in 2020 to $2.1 billion - a very gratifying result in the face of the enormous challenges that confronted us all.

I pay tribute here to the efforts of all of our employees, from our CEO, Rob Scott, to each and every team member across the Group. They went above and beyond to bring about such a result, and pleasingly did so without recourse to the Australian Government's JobKeeper program.

With a strong profit result we were able to pay a final dividend of 77 cents per share fully-franked, plus a special dividend of 18 cents per share fully-franked, the latter reflecting the after-tax profit on the sale of

10.1 per cent of Coles Group Limited. This brought the total dividend payments for the full year to $1.70 per share, fully-franked.

Importantly in these uncertain times, the company finished the year with no net debt which positions us strongly to cope with whatever the next years present.

Our bottom-line result in 2020 was made up of strong contributions from Bunnings, Officeworks, the Chemicals, Energy and Fertilisers business and Kmart; but earnings were below expectation in Target and the Industrial and Safety division.

Target's financial performance has been unsatisfactory for some time and, in May, we announced actions to address structural challenges, simplifying Target's operating model and enhancing the value of the store network. These changes will further strengthen the performance of Kmart while improving the future prospects of Target.

As challenging as the last year has been, one of its positive outcomes was that it gave us the opportunity at Wesfarmers to 'put our money where our mouth was' in respect of corporate citizenship. I'm referring here to the commitment we have always expressed to look after the interests of all our stakeholders.

We have never been backward about stating that our single purpose as a company is to provide satisfactory returns to you, our shareholders. The reason you own shares in Wesfarmers rather than another company is that you hope we'll give you better returns over the long term; but we have always been at pains to state that the only way we can achieve financial success over the long term is if we look after the interests of all stakeholders: employees, customers, suppliers and the communities in which we operate - and if we act ethically and sustainably.

The bushfires and the COVID-19 pandemic provided the opportunity to prove that they were not hollow words. I described our actions in response to the bushfires in the Annual Report, but in summary they involved providing volunteering leave to team members, committing substantial sums to fire-affected communities, donating equipment to firefighters and, as the recovery commenced, supporting community organisations.

Wesfarmers Limited 2020 Chairman's Address and Managing Director's Address

page 4 of 8