Wesfarmers : 2020 Annual Report

2020 Annual Report

ABOUT 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, Wesfarmers' diverse businesses in this year's review cover: home improvement, outdoor living and building materials; general merchandise and apparel; ofce and technology products; manufacturing and distribution of chemicals and fertilisers; industrial and safety product distribution; and gas processing and distribution. Wesfarmers is one of Australia's largest private sector employers with approximately 107,000 team members and is owned by more than 487,000 shareholders.

ABOUT THIS REPORT

This annual report is a summary of Wesfarmers and its subsidiary companies' operations, activities and nancial performance and position as at 30June2020. In this report references to 'Wesfarmers', 'the company', 'the Group', 'we', 'us' and 'our' refer to Wesfarmers Limited (ABN28008984049), unless otherwise stated.

References in this report to a 'year' are to the nancial year ended 30June 2020 unless otherwise stated. All dollar gures are expressed in Australian dollars (AUD) unless otherwise stated.

References to AASB refer to the Australian Accounting Standards Board and IFRS refers to the International Financial Reporting Standards. There are references to IFRS and non-IFRS nancial information in this report. Non-IFRS nancial measures are nancial measures other than those dened or specied under any relevant accounting standard and may not be

directly comparable with other companies' information. Non-IFRS nancial measures are used to enhance the comparability of information between reporting periods (such as pre-AASB 16 nancial information). Non-IFRS nancial information should be considered in addition to, and is not intended to be a substitute for, IFRS nancial information and measures. Non-IFRS nancial measures are not subject to audit or review.

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 ISO14001 environmental standards.

Contents
OVERVIEW	Group structure	2
		Our primary objective	3
		The year in review	4
		Performance overview	6
		Chairman's message	8
		Managing Director's report	10
		Supporting our community	12
		Leadership Team	14

OPERATING AND FINANCIAL REVIEW

Operating and financial review	16
Bunnings	28
Kmart Group	34
Officeworks	42
Chemicals, Energy and Fertilisers	48
Industrial and Safety	54
Other activities	60
Group sustainability performance	61
Climate-related financial disclosures	68
Independent Limited Assurance Statement	79

GOVERNANCE	Board of directors	80
	Corporate governance overview	82
DIRECTORS'	Directors' report	87
REPORT	Remuneration report	92
FINANCIAL	Financial statements	117
STATEMENTS	Notes to the financial statements	123
SIGNED	Directors' declaration	165
REPORTS	Independent auditor's report	166
SHAREHOLDER	Five-year financial history	172
AND ASX	Shareholder information	173
INFORMATION	Investor information	174
	Corporate directory	175
	Wesfarmers businesses	176

Wesfarmers 2020 Annual Report

1

Overview

Group structure

Chemicals,

Industrial

Other

Bunnings

Kmart Group

Officeworks

Energy and

Corporate

and Safety

activities

Fertilisers

(4.9%)

(50%)

(50%)

(50%)

(24.8%)

(75%)

(50%)

(50%)

2 Wesfarmers 2020 Annual Report