1 00:00:00,200 --> 00:00:02,560 Speaker 1: We genuinely have to be the best in the world, 2 00:00:02,640 --> 00:00:05,960 Speaker 1: like we are fighting tooth and nail with companies like Amazon, 3 00:00:06,519 --> 00:00:08,360 Speaker 1: with Costco, with Audi. 4 00:00:09,000 --> 00:00:11,520 Speaker 2: The real secret source of Kmart is there. 5 00:00:12,280 --> 00:00:15,400 Speaker 3: How seriously did you consider rebranding Bunnings to Hammer bun 6 00:00:20,720 --> 00:00:22,959 Speaker 3: I'm n New Williams, one of the co founders and 7 00:00:23,000 --> 00:00:26,159 Speaker 3: co CEOs at chers E's, and today we're in a 8 00:00:26,239 --> 00:00:29,640 Speaker 3: bit of a dreary Sydney about to chat with Rob Scott, 9 00:00:29,640 --> 00:00:31,440 Speaker 3: who's the CEO of Wiz Farmers. 10 00:00:31,600 --> 00:00:33,640 Speaker 1: There came a point in time where it was very 11 00:00:33,680 --> 00:00:35,839 Speaker 1: clear that physically I was not going to be the 12 00:00:35,880 --> 00:00:38,640 Speaker 1: best in the world in sport anymore, but you know, 13 00:00:38,680 --> 00:00:40,880 Speaker 1: I wanted to be part of a team that shared 14 00:00:40,920 --> 00:00:41,879 Speaker 1: a similar sense of. 15 00:00:41,840 --> 00:00:45,600 Speaker 3: Ambition with Farmers is one of Australia's biggest companies, and 16 00:00:45,680 --> 00:00:47,640 Speaker 3: as the name behind the brands that we know and 17 00:00:47,680 --> 00:00:51,000 Speaker 3: love like Camart, Bunnings and Target, We're going to learn 18 00:00:51,120 --> 00:00:52,720 Speaker 3: what it's like to be at the helm of one 19 00:00:52,760 --> 00:00:53,800 Speaker 3: of these big companies. 20 00:00:53,960 --> 00:00:56,600 Speaker 1: The type of culture you need to be successful in 21 00:00:56,720 --> 00:00:58,640 Speaker 1: Bunnings will be a little bit different to what you 22 00:00:58,720 --> 00:01:01,760 Speaker 1: need to be successful in a refinery, which will be 23 00:01:01,800 --> 00:01:04,000 Speaker 1: different to what you need in a healthcare business. 24 00:01:04,080 --> 00:01:06,600 Speaker 3: Before we get started, I want to pay my acknowledgments 25 00:01:06,680 --> 00:01:09,080 Speaker 3: to the traditional custodians of the land where we come 26 00:01:09,120 --> 00:01:12,520 Speaker 3: to you from today, the Gettigo people of the urination 27 00:01:12,800 --> 00:01:15,720 Speaker 3: and pay respects to olders, pats, prison and emerging. 28 00:01:16,319 --> 00:01:18,920 Speaker 4: Investing involves the risk you might lose the money you 29 00:01:18,959 --> 00:01:22,240 Speaker 4: start with. We recommend talking to a licensed financial advisor. 30 00:01:22,959 --> 00:01:26,800 Speaker 4: We also recommend breeding product disclosure documents before deciding to invest. 31 00:01:27,040 --> 00:01:29,440 Speaker 4: Everything you're about to see and here is current at 32 00:01:29,440 --> 00:01:30,280 Speaker 4: the time of recording. 33 00:01:31,040 --> 00:01:34,640 Speaker 3: Welcome Rob, Thanks thanks for joining us. Thank you so 34 00:01:35,000 --> 00:01:39,240 Speaker 3: Bunnings Group, Pamart Target all huge brands, all owned by 35 00:01:39,240 --> 00:01:39,920 Speaker 3: WIS Farmers. 36 00:01:40,040 --> 00:01:42,160 Speaker 2: Can you tell us about WIZ Farmers sure? 37 00:01:42,240 --> 00:01:45,000 Speaker 1: Well, West Farmers has been around for over one hundred 38 00:01:45,040 --> 00:01:47,640 Speaker 1: and ten years now. So we started off life in 39 00:01:47,760 --> 00:01:51,240 Speaker 1: nineteen fourteen as a farmer's cooperative and then in nineteen 40 00:01:51,320 --> 00:01:55,520 Speaker 1: eighty four they made a very important step to demutralize 41 00:01:55,560 --> 00:01:59,480 Speaker 1: so converted from being a cooperative structure to a listed company. 42 00:02:00,080 --> 00:02:02,800 Speaker 1: So we've been a listed company since nineteen eighty four 43 00:02:03,760 --> 00:02:07,520 Speaker 1: and since then we've continued to evolve, continue to buy 44 00:02:07,560 --> 00:02:11,880 Speaker 1: and sell businesses with the very singular focus of trying 45 00:02:11,919 --> 00:02:14,800 Speaker 1: to deliver a satisfactory return to our shareholders. 46 00:02:14,800 --> 00:02:18,000 Speaker 3: You talk about the diversification and maybe the starting with 47 00:02:18,040 --> 00:02:21,880 Speaker 3: Farmers to now having Kmart and Bunnings. Is there a 48 00:02:21,960 --> 00:02:26,400 Speaker 3: thrid that hangs together around these portfolio how your portfolio 49 00:02:26,440 --> 00:02:27,400 Speaker 3: grows and changes. 50 00:02:27,639 --> 00:02:31,480 Speaker 1: Our objective is to deliver a satisfactory return to shareholders, 51 00:02:32,080 --> 00:02:36,320 Speaker 1: and perhaps in a very true, understated farmer's style, we 52 00:02:36,480 --> 00:02:40,880 Speaker 1: define satisfactory as being in the top quarter of returns 53 00:02:40,919 --> 00:02:44,240 Speaker 1: for all Australian listed companies, so it is quite we 54 00:02:44,240 --> 00:02:47,480 Speaker 1: do set quite an ambitious target, but we also take 55 00:02:47,560 --> 00:02:50,560 Speaker 1: the view that it's only possible to deliver those superior 56 00:02:50,639 --> 00:02:53,960 Speaker 1: returns if we focus on the long term. So we 57 00:02:54,040 --> 00:02:57,120 Speaker 1: deliberately have a long term investment horizon, and we also 58 00:02:57,240 --> 00:03:01,359 Speaker 1: realize that in order to deliver sustain returns, we must 59 00:03:01,560 --> 00:03:05,320 Speaker 1: anticipate the needs of our customers, look after our team members, 60 00:03:05,680 --> 00:03:09,960 Speaker 1: treat our supplies fairly, take care of the environment, contribute 61 00:03:10,000 --> 00:03:12,240 Speaker 1: to the communities in which we operate, and act with 62 00:03:12,320 --> 00:03:15,720 Speaker 1: honesty and integrity. So although we have a very financially 63 00:03:15,760 --> 00:03:18,520 Speaker 1: focused objective, we realize that to do that over the 64 00:03:18,560 --> 00:03:23,200 Speaker 1: long term requires us to be a very sustainable company 65 00:03:23,200 --> 00:03:24,400 Speaker 1: and a good corporate citizen. 66 00:03:24,800 --> 00:03:27,840 Speaker 3: How do you go about thinking about that type of thing. Then, 67 00:03:27,880 --> 00:03:32,279 Speaker 3: if it as really around spotting these incredible growth opportunities 68 00:03:32,440 --> 00:03:35,000 Speaker 3: or working out how to grow these companies, how do 69 00:03:35,040 --> 00:03:36,960 Speaker 3: you go about managing that well? 70 00:03:37,000 --> 00:03:39,680 Speaker 1: As I said, because we are very long term focused, 71 00:03:39,720 --> 00:03:42,000 Speaker 1: We're not one of these investors that buys and sells 72 00:03:42,040 --> 00:03:44,960 Speaker 1: companies all the time. So we invest in companies that 73 00:03:45,040 --> 00:03:48,800 Speaker 1: we feel that we have the ability to manage, that 74 00:03:48,880 --> 00:03:51,520 Speaker 1: we feel are good quality businesses that we can invest 75 00:03:51,560 --> 00:03:54,720 Speaker 1: in over time and that will ultimately generate good returns. 76 00:03:55,160 --> 00:03:58,400 Speaker 1: So that long term focus very much guides us. We 77 00:03:58,480 --> 00:04:03,320 Speaker 1: also think about for broad strategies, and when you operate 78 00:04:03,360 --> 00:04:06,280 Speaker 1: across a diverse range of industries, it's hard to say 79 00:04:06,400 --> 00:04:08,840 Speaker 1: this is the one strategy that's going to work for 80 00:04:09,160 --> 00:04:13,040 Speaker 1: a retail business or a chemicals business. But our four 81 00:04:13,520 --> 00:04:18,279 Speaker 1: value creating strategies are quite simple. They are ensuring operational 82 00:04:18,320 --> 00:04:22,919 Speaker 1: excellence across all of our businesses to satisfy customer needs. Secondly, 83 00:04:23,480 --> 00:04:28,680 Speaker 1: finding growth opportunities through entrepreneurial initiative. The third strategy is 84 00:04:28,760 --> 00:04:32,479 Speaker 1: renewing the portfolio, and that's ensuring that our capital is 85 00:04:32,480 --> 00:04:35,840 Speaker 1: allocated into businesses, it will generate good returns and then 86 00:04:35,960 --> 00:04:41,800 Speaker 1: finally responsible long term management, so ensuring sustainability within our businesses. 87 00:04:42,240 --> 00:04:43,640 Speaker 3: Yeah, Cole, do you want to talk a bit more 88 00:04:43,680 --> 00:04:45,560 Speaker 3: about how you see sustainability. 89 00:04:46,200 --> 00:04:46,440 Speaker 2: Sure? 90 00:04:46,480 --> 00:04:49,840 Speaker 1: Well, as I said earlier, we see sustainability as being 91 00:04:50,000 --> 00:04:55,160 Speaker 1: totally linked to delivering superior long term investment returns and 92 00:04:55,320 --> 00:04:58,600 Speaker 1: it's very much ingrained into all aspects of our operations 93 00:04:58,640 --> 00:05:03,120 Speaker 1: and strategy. In fact, before ESG and sustainability was even 94 00:05:03,160 --> 00:05:07,960 Speaker 1: a thing, we're one of the first companies in Australia 95 00:05:08,000 --> 00:05:11,279 Speaker 1: to launch a sustainability report that we've been publishing for 96 00:05:11,600 --> 00:05:14,920 Speaker 1: well over twenty years, and we also talked about those 97 00:05:15,000 --> 00:05:20,880 Speaker 1: really important aspects of engaging with communities, good corporate governance, 98 00:05:22,560 --> 00:05:26,600 Speaker 1: also taking care of the environment. So we take all 99 00:05:26,640 --> 00:05:30,400 Speaker 1: those things really seriously. We measure them and if your 100 00:05:30,400 --> 00:05:32,760 Speaker 1: investors were to look at our half year, full year 101 00:05:32,800 --> 00:05:35,760 Speaker 1: results or even our strategy days, you will see at 102 00:05:35,800 --> 00:05:40,159 Speaker 1: the very front of every results presentation we actually put 103 00:05:40,200 --> 00:05:45,440 Speaker 1: the proof points on our sustainability metrics. Financial results measure matter, 104 00:05:45,680 --> 00:05:49,080 Speaker 1: but also sustainability measures matter, so we talk about what's 105 00:05:49,120 --> 00:05:53,880 Speaker 1: happening with our carbon emission reductions we talk about what's 106 00:05:53,880 --> 00:05:57,960 Speaker 1: happening with our team member safety statistics. An area that 107 00:05:58,040 --> 00:06:01,120 Speaker 1: we are very proud of is the developments we've made 108 00:06:01,160 --> 00:06:06,200 Speaker 1: around indigenous employment and we are pleased to have employment 109 00:06:06,320 --> 00:06:09,640 Speaker 1: parity in Australia. And then a lot of issues around 110 00:06:09,720 --> 00:06:16,000 Speaker 1: ethical sourcing, community investments, other aspects of auditing our supply 111 00:06:16,120 --> 00:06:18,240 Speaker 1: chain are really important across. 112 00:06:17,839 --> 00:06:21,960 Speaker 3: These different industries. I can only imagine it's like trying 113 00:06:21,960 --> 00:06:24,599 Speaker 3: to wrangle the legs of an octopus within the amount 114 00:06:24,680 --> 00:06:27,480 Speaker 3: of different industries that you're in. How do you how 115 00:06:27,480 --> 00:06:29,920 Speaker 3: do you keep across all the different industries and grow 116 00:06:29,960 --> 00:06:31,320 Speaker 3: these businesses well. 117 00:06:31,400 --> 00:06:34,760 Speaker 1: One of the secrets to West Farmer's success over the years, 118 00:06:34,800 --> 00:06:38,239 Speaker 1: I think has been what we call our loose type 119 00:06:38,240 --> 00:06:42,240 Speaker 1: model of management. So the looseness is around divisional autonomy. 120 00:06:42,520 --> 00:06:44,840 Speaker 1: So what we do is we give a lot of 121 00:06:45,279 --> 00:06:49,400 Speaker 1: autonomy operating autonomy to our business leaders in each division. 122 00:06:49,520 --> 00:06:54,159 Speaker 1: So for example, the CEO of Bunnings is responsible for 123 00:06:54,240 --> 00:06:58,200 Speaker 1: Bunnings operations and Mike Schneider, CEO of Bunnings has a 124 00:06:58,320 --> 00:07:02,599 Speaker 1: really capable, world class team in Bunnings, so I don't 125 00:07:02,640 --> 00:07:05,360 Speaker 1: have to worry about the day to day issues in Bunnings, 126 00:07:05,720 --> 00:07:08,039 Speaker 1: I just worry about have we got the right people 127 00:07:08,240 --> 00:07:11,040 Speaker 1: running the business, which we do. And then I very 128 00:07:11,080 --> 00:07:15,120 Speaker 1: much focus at a group level on the capital allocation, 129 00:07:15,520 --> 00:07:19,480 Speaker 1: the governance, the balance sheet and providing the support that 130 00:07:19,520 --> 00:07:22,960 Speaker 1: Bunnings and our other divisions need. So divisional autonomy is 131 00:07:23,000 --> 00:07:25,960 Speaker 1: really critical. And then at a corporate office, we try 132 00:07:26,160 --> 00:07:29,920 Speaker 1: to have a lean, high caliber corporate office because that 133 00:07:30,080 --> 00:07:33,040 Speaker 1: enables us to not only add more value to the divisions, 134 00:07:33,080 --> 00:07:35,520 Speaker 1: but to keep our costs down and to be more 135 00:07:35,600 --> 00:07:37,600 Speaker 1: nimble and agile with decision making. 136 00:07:38,280 --> 00:07:39,520 Speaker 2: But we are very focused. 137 00:07:39,560 --> 00:07:43,120 Speaker 1: The areas that i'd say are around the tightness, very 138 00:07:43,360 --> 00:07:47,320 Speaker 1: tight and disciplined around capital allocation. So if our divisions 139 00:07:47,360 --> 00:07:50,320 Speaker 1: want to make an investment or they want to enter 140 00:07:50,360 --> 00:07:53,720 Speaker 1: into a long term contract of significance, they need the 141 00:07:53,760 --> 00:07:58,480 Speaker 1: approval of us at the corporate level. And we also 142 00:07:58,640 --> 00:08:01,400 Speaker 1: are very strict around a lot of our corporate policies 143 00:08:01,400 --> 00:08:04,320 Speaker 1: and procedures, so we want to ensure that we have 144 00:08:04,680 --> 00:08:07,440 Speaker 1: really strong corporate governance and reporting across the group. 145 00:08:07,800 --> 00:08:10,480 Speaker 3: What are some of the challenges and opportunities you're facing 146 00:08:10,520 --> 00:08:11,000 Speaker 3: at the moment. 147 00:08:11,680 --> 00:08:13,720 Speaker 1: Some of the challenges are that we live in a 148 00:08:13,800 --> 00:08:17,720 Speaker 1: very uncertain and volatile world at the moment. We're seeing 149 00:08:17,760 --> 00:08:21,760 Speaker 1: that play out internationally at the moment with the tariffs, 150 00:08:21,920 --> 00:08:25,080 Speaker 1: the US tariffs and some of the geopolitical issues that 151 00:08:25,520 --> 00:08:28,960 Speaker 1: have the potential to have a very significant impact on 152 00:08:29,800 --> 00:08:33,880 Speaker 1: trade orientated countries like Australia and New Zealand. And Whilst 153 00:08:34,280 --> 00:08:37,800 Speaker 1: our countries might not be directly impacted by the tariffs, 154 00:08:38,040 --> 00:08:40,839 Speaker 1: there are always the secondary impacts if it impacts our 155 00:08:40,880 --> 00:08:45,080 Speaker 1: trading partners or impacts global supply chains. So that's one 156 00:08:45,120 --> 00:08:49,400 Speaker 1: that we're looking to navigate. Some of the opportunities, i'd 157 00:08:49,440 --> 00:08:52,360 Speaker 1: say would be we have a lot of opportunities for 158 00:08:52,440 --> 00:08:55,920 Speaker 1: growth within our businesses. So we're really excited about the 159 00:08:55,960 --> 00:08:59,679 Speaker 1: opportunities to expand our range and addressable market in Bunnings 160 00:09:00,080 --> 00:09:04,760 Speaker 1: in Kmart. We're excited about the international growth opportunities for 161 00:09:04,840 --> 00:09:06,800 Speaker 1: our Anko kmart product. 162 00:09:06,880 --> 00:09:07,559 Speaker 2: Internationally. 163 00:09:08,520 --> 00:09:11,960 Speaker 1: We have some new and emerging businesses such as our 164 00:09:12,000 --> 00:09:15,559 Speaker 1: healthcare business and our lithium business that we've invested a 165 00:09:15,600 --> 00:09:18,320 Speaker 1: lot of capital in, but we're expecting them to deliver 166 00:09:18,720 --> 00:09:21,360 Speaker 1: good earnings growth in the years ahead. So they are 167 00:09:21,400 --> 00:09:23,640 Speaker 1: some of the exciting opportunities across the group. 168 00:09:24,559 --> 00:09:27,520 Speaker 3: Yeah, So Liszt chat about tariffs for a little bit. 169 00:09:28,760 --> 00:09:30,760 Speaker 3: They how has that impected to do it? Or you 170 00:09:30,760 --> 00:09:33,360 Speaker 3: mentioned that you're navigating it, Has it changed things with 171 00:09:33,400 --> 00:09:35,679 Speaker 3: suppliers or yeah, tell us a bit about that. 172 00:09:35,760 --> 00:09:38,880 Speaker 1: Well, there hasn't been any immediate changes because it's obviously 173 00:09:38,920 --> 00:09:42,040 Speaker 1: still quite early days and there's been a lot of change. 174 00:09:42,120 --> 00:09:44,600 Speaker 1: So I think everyone's still trying to understand where are 175 00:09:44,640 --> 00:09:49,000 Speaker 1: the final tariff situations going to land. At a time 176 00:09:49,080 --> 00:09:51,280 Speaker 1: when there was the talk of over one hundred percent 177 00:09:51,360 --> 00:09:55,760 Speaker 1: tariffs on China from the US, that could have had 178 00:09:55,880 --> 00:09:59,440 Speaker 1: very profound implications on global trade. And like I said, 179 00:09:59,440 --> 00:10:02,720 Speaker 1: although itouldn't necessarily have a direct impact on Australia or 180 00:10:02,760 --> 00:10:06,560 Speaker 1: New Zealand, if a lot of our major suppliers and 181 00:10:06,600 --> 00:10:09,360 Speaker 1: trading partners were being impacted in Asia. 182 00:10:09,440 --> 00:10:10,880 Speaker 2: Then it would have impacts on us. 183 00:10:10,960 --> 00:10:14,240 Speaker 1: So what we're really doing is continuing to monitor the situation. 184 00:10:14,920 --> 00:10:18,760 Speaker 1: We have over one thousand people in West Farmers based 185 00:10:18,800 --> 00:10:23,360 Speaker 1: across Asia in various countries in Asia, in various sourcing, 186 00:10:23,480 --> 00:10:28,320 Speaker 1: supply chain, buying and technology roles, so we have deep 187 00:10:28,400 --> 00:10:32,959 Speaker 1: connectivity across different countries. We have a very diversified supply 188 00:10:33,080 --> 00:10:36,920 Speaker 1: base across many countries, so our focus is just to 189 00:10:36,920 --> 00:10:39,760 Speaker 1: be ready to move if there are changes. We want 190 00:10:39,760 --> 00:10:43,040 Speaker 1: to be able to work with our key suppliers. If 191 00:10:43,080 --> 00:10:46,240 Speaker 1: there are opportunities to get better rates and better terms 192 00:10:46,240 --> 00:10:48,400 Speaker 1: for the benefit of our customers, we will do that. 193 00:10:48,960 --> 00:10:51,760 Speaker 1: And we also wear one of the largest users of 194 00:10:51,840 --> 00:10:54,960 Speaker 1: container shipping in the Southern hemisphere, so if there were 195 00:10:55,120 --> 00:10:59,720 Speaker 1: changes in container shipping internationally, then we have the ability 196 00:10:59,760 --> 00:11:03,720 Speaker 1: through our strategic partnerships to ensure that we retain supply 197 00:11:03,720 --> 00:11:04,520 Speaker 1: at a good price. 198 00:11:04,800 --> 00:11:07,520 Speaker 3: Over the years, Kmart's gone through a bit of a 199 00:11:07,520 --> 00:11:11,120 Speaker 3: repositioning and it's actually like it's now known as a 200 00:11:11,160 --> 00:11:14,559 Speaker 3: really cool place to shop. Can you talk about how 201 00:11:14,679 --> 00:11:16,560 Speaker 3: that strategy has been playing out over the. 202 00:11:16,600 --> 00:11:17,240 Speaker 2: Last few years. 203 00:11:17,280 --> 00:11:20,760 Speaker 1: The kmart team have done an amazing job of transforming 204 00:11:20,800 --> 00:11:24,640 Speaker 1: that business. And the real secret source of kmart is 205 00:11:24,679 --> 00:11:29,000 Speaker 1: their product development capabilities. And because we design and we 206 00:11:29,080 --> 00:11:32,920 Speaker 1: source products directly at scale, we're able to do so 207 00:11:33,760 --> 00:11:36,720 Speaker 1: number one in a very sustainable way because we control 208 00:11:36,800 --> 00:11:40,000 Speaker 1: the supply chain, but we're also to bring very unique 209 00:11:40,040 --> 00:11:44,160 Speaker 1: products to market at unbelievable price points. And the great 210 00:11:44,160 --> 00:11:47,679 Speaker 1: thing about that is that is making on trend exciting 211 00:11:47,760 --> 00:11:51,000 Speaker 1: products more accessible to the community, and we've seen that 212 00:11:51,000 --> 00:11:52,600 Speaker 1: across many categories, not just. 213 00:11:52,559 --> 00:11:54,440 Speaker 2: To paril or home or kitchen. 214 00:11:54,440 --> 00:11:58,400 Speaker 1: Where also a lot of our own brand toys, tech accessories, 215 00:11:58,800 --> 00:12:02,640 Speaker 1: more recently health and beauty products, or exercise equipment or 216 00:12:02,679 --> 00:12:06,840 Speaker 1: pet accessories, and now eighty five percent of the products 217 00:12:06,840 --> 00:12:09,880 Speaker 1: we sell in kmart are our own, very unique and 218 00:12:09,960 --> 00:12:15,000 Speaker 1: exclusive products. So that's really resonating, and I guess the 219 00:12:15,040 --> 00:12:17,600 Speaker 1: public is now starting to see that they can expect 220 00:12:17,640 --> 00:12:21,000 Speaker 1: a lot of innovation in product design, they can expect 221 00:12:21,000 --> 00:12:25,280 Speaker 1: the best prices, and it's a really exciting place to shop. 222 00:12:25,600 --> 00:12:28,480 Speaker 3: You've got the global stores like Ikea and New Zealand, 223 00:12:28,520 --> 00:12:31,319 Speaker 3: you've got Wearhouse Group. How do you compete? 224 00:12:31,480 --> 00:12:35,400 Speaker 1: The retail market is just so incredibly competitive, and what 225 00:12:35,440 --> 00:12:38,079 Speaker 1: good looks like today is just not going to be 226 00:12:38,120 --> 00:12:41,199 Speaker 1: good enough in five years time. Customers have the choice 227 00:12:41,240 --> 00:12:44,439 Speaker 1: now to buy many of those brands online. They can 228 00:12:44,480 --> 00:12:47,120 Speaker 1: sit on their phone to find the lowest price for 229 00:12:47,200 --> 00:12:50,440 Speaker 1: that brand and get it delivered to their door, their 230 00:12:50,480 --> 00:12:55,360 Speaker 1: front door. So to be competitive and relevant for today's 231 00:12:55,360 --> 00:12:57,760 Speaker 1: consumers in retail, you need to have a point of difference, 232 00:12:57,760 --> 00:13:01,000 Speaker 1: And as I said earlier, Kmart's point of difference is 233 00:13:01,040 --> 00:13:06,640 Speaker 1: their unique products on trend, unique everyday products at amazing prices. 234 00:13:07,160 --> 00:13:10,040 Speaker 3: Yeah. And so one of the other environmental things going 235 00:13:10,040 --> 00:13:11,880 Speaker 3: on at the moment is the cost of living crisis. 236 00:13:11,920 --> 00:13:15,080 Speaker 3: How is that affecting the came up brand or came 237 00:13:15,120 --> 00:13:15,720 Speaker 3: out superformance? 238 00:13:15,880 --> 00:13:19,240 Speaker 1: I must admit we would much rather households had a 239 00:13:19,280 --> 00:13:22,040 Speaker 1: lot of money to spend. We don't like cost of 240 00:13:22,040 --> 00:13:25,920 Speaker 1: living crises, right, but when customers are doing it tough, 241 00:13:25,920 --> 00:13:28,920 Speaker 1: when households are really trying to manage their budgets titally, 242 00:13:29,679 --> 00:13:33,360 Speaker 1: we are very confident that businesses like cam Art, Bunnings 243 00:13:33,400 --> 00:13:36,719 Speaker 1: and indeed office works are really going to help families 244 00:13:37,600 --> 00:13:40,480 Speaker 1: families with their cost of living pressures. So we have 245 00:13:40,520 --> 00:13:44,120 Speaker 1: a philosophy in our businesses. It's called an everyday low 246 00:13:44,200 --> 00:13:48,240 Speaker 1: price philosophy, and that is that rather than rather than 247 00:13:48,360 --> 00:13:52,160 Speaker 1: confusing customers with high low pricing, so the price is 248 00:13:52,240 --> 00:13:54,760 Speaker 1: high one day and discounted the next. That leads to 249 00:13:54,800 --> 00:13:57,720 Speaker 1: a lot of mistrust in pricing. We try and have 250 00:13:57,840 --> 00:14:02,080 Speaker 1: an every day low price. If able to drive efficiencies 251 00:14:02,200 --> 00:14:07,079 Speaker 1: or cost savings through our growth or sourcing abilities, then 252 00:14:07,120 --> 00:14:10,120 Speaker 1: we want to share some of that benefit in lower prices. 253 00:14:10,720 --> 00:14:14,400 Speaker 1: And if you remember post COVID, Remember when inflation started 254 00:14:14,400 --> 00:14:19,240 Speaker 1: to kick in. And the secret is that many retailers 255 00:14:19,360 --> 00:14:23,200 Speaker 1: like inflation because inflation lets them put up their prices 256 00:14:23,240 --> 00:14:27,600 Speaker 1: and fractionalize their costs. Now, we made a very unpopular 257 00:14:27,640 --> 00:14:32,120 Speaker 1: comment for investors coming out of COVID when inflation started 258 00:14:32,120 --> 00:14:34,440 Speaker 1: to kick in, and many investors thought, wow, this is 259 00:14:34,480 --> 00:14:38,360 Speaker 1: a great thing for retailers. Well our businesses and we 260 00:14:38,480 --> 00:14:40,880 Speaker 1: as West Farmers, came out and said, no, we are 261 00:14:40,880 --> 00:14:42,320 Speaker 1: going to keep our prices low. 262 00:14:42,640 --> 00:14:43,360 Speaker 2: We're going to. 263 00:14:43,320 --> 00:14:47,480 Speaker 1: Do everything possible to avoid putting our prices up too much. 264 00:14:47,920 --> 00:14:49,720 Speaker 2: But that has served us really well. 265 00:14:49,800 --> 00:14:53,720 Speaker 1: It's also helped customers in their time of need, and 266 00:14:53,760 --> 00:14:56,720 Speaker 1: it's a very core philosophy of our retail businesses. 267 00:14:56,800 --> 00:14:59,240 Speaker 3: So the Enco brand you touched a little bit about that, 268 00:14:59,320 --> 00:15:01,680 Speaker 3: but I'd love to more about it, especially the global 269 00:15:01,840 --> 00:15:03,440 Speaker 3: expansion or how you're expanding that. 270 00:15:03,840 --> 00:15:06,960 Speaker 1: When you look at the Anco products in a particular range, 271 00:15:07,400 --> 00:15:11,880 Speaker 1: the way that the range is curated, the style, the colors, 272 00:15:11,920 --> 00:15:15,880 Speaker 1: the themes of the range is very attractive for many 273 00:15:15,920 --> 00:15:19,120 Speaker 1: other international retailers. And there are many international retailers that 274 00:15:19,160 --> 00:15:23,720 Speaker 1: are looking to simplify their businesses. They might not have 275 00:15:23,800 --> 00:15:27,840 Speaker 1: the ability to have very extensive sourcing and design capabilities. 276 00:15:28,320 --> 00:15:30,360 Speaker 1: They might not be able to invest in the same 277 00:15:30,480 --> 00:15:34,200 Speaker 1: level of factory auditing and sustainability. 278 00:15:33,600 --> 00:15:34,720 Speaker 2: Oversight that we do. 279 00:15:35,280 --> 00:15:37,120 Speaker 1: So we started to learn that there was a fair 280 00:15:37,120 --> 00:15:39,880 Speaker 1: bit of international interest, so we did set up a 281 00:15:39,920 --> 00:15:44,920 Speaker 1: separate team and we're now pursuing three strategies for international growth. 282 00:15:44,920 --> 00:15:48,280 Speaker 1: The first is we're opening some new ANCO stores in 283 00:15:48,320 --> 00:15:50,920 Speaker 1: the Philippines, and we're doing so in partnership with a 284 00:15:50,920 --> 00:15:53,680 Speaker 1: big Philippines group called a Yala that own a lot 285 00:15:53,680 --> 00:15:54,760 Speaker 1: of shopping malls there. 286 00:15:55,320 --> 00:15:57,440 Speaker 2: So by the end of the year we'll have five. 287 00:15:57,280 --> 00:16:00,840 Speaker 1: Or six stores open ANCO stores as they called, and 288 00:16:00,920 --> 00:16:04,239 Speaker 1: so far they're going really well. We also have wholesaling 289 00:16:04,440 --> 00:16:10,320 Speaker 1: arrangements where groups like Walmart into Walmart Canada, We have 290 00:16:10,440 --> 00:16:13,640 Speaker 1: some European retailers car for as an example, and a 291 00:16:13,680 --> 00:16:17,600 Speaker 1: few others where we're selling product to them for them 292 00:16:17,640 --> 00:16:20,760 Speaker 1: to use in their international stores. The final area is 293 00:16:20,880 --> 00:16:25,760 Speaker 1: a white labeling opportunity. So Mattel, the international toy company, 294 00:16:26,360 --> 00:16:29,840 Speaker 1: currently rely on Anko to provide them with their wooden 295 00:16:29,920 --> 00:16:30,880 Speaker 1: toys that. 296 00:16:30,840 --> 00:16:35,760 Speaker 2: They white label under the Fisher Price brand. 297 00:16:35,840 --> 00:16:38,120 Speaker 1: So if you're in the US and you're buying a 298 00:16:38,160 --> 00:16:40,880 Speaker 1: Fisher Price wooden toy that's coming from Anco. 299 00:16:41,400 --> 00:16:44,040 Speaker 3: Well, I think I've got one of those little wooden 300 00:16:44,080 --> 00:16:48,440 Speaker 3: coffee machines at my house. Great. At the recent Ray 301 00:16:48,440 --> 00:16:52,320 Speaker 3: Morgan Pole showed that both Bunnings and Kmart were in 302 00:16:52,360 --> 00:16:55,600 Speaker 3: the top three of Australia's most trusted brands, with Bunnings 303 00:16:55,640 --> 00:16:57,280 Speaker 3: taking out the number one spot. What do you think 304 00:16:57,360 --> 00:16:58,160 Speaker 3: drives that trust? 305 00:16:58,280 --> 00:17:02,400 Speaker 1: Look, it really starts with our teams. We have leaders 306 00:17:02,440 --> 00:17:05,520 Speaker 1: that are deep leaders and team members and those businesses 307 00:17:05,560 --> 00:17:09,919 Speaker 1: that are deeply committed to delivering on their objective of 308 00:17:10,160 --> 00:17:14,199 Speaker 1: everyday low prices, doing the right thing by their team members, 309 00:17:14,200 --> 00:17:17,040 Speaker 1: their customers and the communities in which they operate. And 310 00:17:17,119 --> 00:17:20,479 Speaker 1: I think that trust that customers and households can have 311 00:17:21,119 --> 00:17:22,760 Speaker 1: in our products really matters. 312 00:17:23,200 --> 00:17:25,240 Speaker 2: And then I think there's a lot of the other stuff. 313 00:17:24,960 --> 00:17:28,040 Speaker 1: Over and above that, a lot of the contribution that 314 00:17:28,119 --> 00:17:32,040 Speaker 1: Bunnings and make to the community, like across across the 315 00:17:32,040 --> 00:17:34,639 Speaker 1: Broader West Farmers Group. Just in the last half in 316 00:17:34,760 --> 00:17:37,960 Speaker 1: six months, we made contributions of I think it was 317 00:17:38,000 --> 00:17:42,000 Speaker 1: fifty five million dollars of direct and indirect contributions to 318 00:17:42,840 --> 00:17:47,920 Speaker 1: over eight thousand community organizations in Australia and New Zealand. 319 00:17:47,400 --> 00:17:48,640 Speaker 2: And that is happening. 320 00:17:49,800 --> 00:17:52,320 Speaker 1: While we do a bit at West Farmers corporately, most 321 00:17:52,320 --> 00:17:55,399 Speaker 1: of that is happening on the ground in local communities 322 00:17:55,400 --> 00:17:58,880 Speaker 1: with businesses like Bunnings and Kmart, So all of those 323 00:17:58,920 --> 00:18:02,240 Speaker 1: things really matter, and I think having I'd like to 324 00:18:02,280 --> 00:18:07,119 Speaker 1: think that our divisions feel that having a supportive owner 325 00:18:07,280 --> 00:18:09,560 Speaker 1: like West Farmers that is very focused on the long 326 00:18:09,680 --> 00:18:12,840 Speaker 1: term and will make capital available to invest for the 327 00:18:12,880 --> 00:18:15,960 Speaker 1: long term, it really gives them the ability to make 328 00:18:16,040 --> 00:18:19,200 Speaker 1: the types of decisions that are going to pay back 329 00:18:19,240 --> 00:18:20,120 Speaker 1: over the long term. 330 00:18:20,240 --> 00:18:24,160 Speaker 3: Coming back to the return that you talked about, you've 331 00:18:24,640 --> 00:18:27,119 Speaker 3: done the half year results recently. Do you want to 332 00:18:27,119 --> 00:18:30,560 Speaker 3: touch on a few of the headlines around the recent announcements. 333 00:18:30,760 --> 00:18:31,640 Speaker 2: Sure? Well. 334 00:18:32,119 --> 00:18:34,720 Speaker 1: Look, in some ways it was a fairly challenging six 335 00:18:34,760 --> 00:18:38,560 Speaker 1: month period because economically, both in Australia and New Zealand, 336 00:18:40,119 --> 00:18:42,919 Speaker 1: consumers in both households in both countries were doing it 337 00:18:42,960 --> 00:18:46,320 Speaker 1: pretty tough. They were facing higher interest rates, cost of 338 00:18:46,400 --> 00:18:49,800 Speaker 1: living pressures, so we were having to navigate that. So 339 00:18:49,960 --> 00:18:53,160 Speaker 1: our businesses we're having to work really hard to find 340 00:18:54,160 --> 00:18:56,040 Speaker 1: new and different ways to grow and I think what 341 00:18:56,200 --> 00:18:59,880 Speaker 1: helped us is because we continue to expand our offer 342 00:19:00,040 --> 00:19:04,040 Speaker 1: and expand our range and grow our businesses, that certainly helps. 343 00:19:04,320 --> 00:19:07,880 Speaker 1: So we're pleased to get a few percent revenue growth 344 00:19:08,440 --> 00:19:09,240 Speaker 1: across the group. 345 00:19:09,640 --> 00:19:10,640 Speaker 2: And importantly, we were. 346 00:19:10,600 --> 00:19:13,560 Speaker 1: Able to do that without putting our prices up too much, 347 00:19:13,640 --> 00:19:19,119 Speaker 1: so essentially our prices went up less than inflation, so 348 00:19:19,200 --> 00:19:22,399 Speaker 1: I think that's really important to note. We were also 349 00:19:22,520 --> 00:19:25,919 Speaker 1: able to slightly grow our earnings. We were able to 350 00:19:26,200 --> 00:19:31,200 Speaker 1: generate really good cash generation as well, and our return 351 00:19:31,280 --> 00:19:34,760 Speaker 1: on equity is very strong. So at a group level, 352 00:19:34,800 --> 00:19:38,360 Speaker 1: our return on equity is about thirty percent. So they 353 00:19:38,359 --> 00:19:40,879 Speaker 1: were all the key measures. The other very important measure 354 00:19:40,880 --> 00:19:44,240 Speaker 1: for our shareholders was that we were able to increase 355 00:19:44,359 --> 00:19:47,639 Speaker 1: our interim dividend, and in the current environment, there's not 356 00:19:47,760 --> 00:19:51,119 Speaker 1: many companies that are increasing their dividends, so that was 357 00:19:51,240 --> 00:19:52,280 Speaker 1: received really well. 358 00:19:52,440 --> 00:19:54,840 Speaker 3: You talked about it before around that it's not just 359 00:19:54,880 --> 00:19:58,000 Speaker 3: the financial metrics that are important that well that you follow. 360 00:19:58,240 --> 00:20:01,000 Speaker 3: You talked about sustainability, any others that you want to 361 00:20:01,400 --> 00:20:03,000 Speaker 3: that you track or keep an eye on. 362 00:20:03,119 --> 00:20:06,159 Speaker 1: So some of the measures that probably a lot of 363 00:20:06,160 --> 00:20:09,880 Speaker 1: investors wouldn't follow, that we follow closely. We really look 364 00:20:09,920 --> 00:20:13,639 Speaker 1: at our team member engagement scores. So we every year 365 00:20:13,800 --> 00:20:17,879 Speaker 1: and sometimes more frequently, we do pulse checks within our team, 366 00:20:18,240 --> 00:20:21,560 Speaker 1: and you know, I think team member engagement gives you 367 00:20:21,600 --> 00:20:25,200 Speaker 1: a sense of the cultural health of a business. Secondly, 368 00:20:25,240 --> 00:20:29,000 Speaker 1: we look at things like unplanned ads and absenteeism. So 369 00:20:29,520 --> 00:20:31,880 Speaker 1: you know, some might say how often are. 370 00:20:31,760 --> 00:20:33,040 Speaker 2: People taking sickies? 371 00:20:33,640 --> 00:20:37,320 Speaker 1: There is a very strong correlation between companies that are 372 00:20:37,359 --> 00:20:41,640 Speaker 1: struggling culturally or performance wise, and you know the desire of. 373 00:20:41,600 --> 00:20:43,680 Speaker 2: People to take more time off. 374 00:20:43,760 --> 00:20:46,680 Speaker 1: Now, sometimes people get sick, but if you sometimes see 375 00:20:46,760 --> 00:20:50,280 Speaker 1: unplanned absenteeism tick up, that's a sign that something's not 376 00:20:50,359 --> 00:20:54,919 Speaker 1: quite right. The other really important metric that we focus 377 00:20:54,960 --> 00:20:59,320 Speaker 1: on very closely is team member safety, and we measure 378 00:20:59,680 --> 00:21:05,640 Speaker 1: what we called TRIFFA, which is recordable safety incidents. We 379 00:21:05,680 --> 00:21:09,439 Speaker 1: also monitor any safety incidents that require our teams to 380 00:21:09,480 --> 00:21:12,560 Speaker 1: take time off that are more severe, and we also 381 00:21:12,760 --> 00:21:16,840 Speaker 1: monitor near misses. So these are some of the measures 382 00:21:16,880 --> 00:21:21,080 Speaker 1: that you'll find most professional good companies do focus on. 383 00:21:21,440 --> 00:21:24,159 Speaker 1: They don't necessarily show up directly in the P and L, 384 00:21:24,240 --> 00:21:25,640 Speaker 1: but there really important measures. 385 00:21:25,800 --> 00:21:28,120 Speaker 3: So how would you describe the culture it with farmers? 386 00:21:28,440 --> 00:21:31,760 Speaker 1: Every one of our businesses has their own unique culture 387 00:21:31,840 --> 00:21:34,280 Speaker 1: and we encourage that because the type of culture you 388 00:21:34,359 --> 00:21:37,080 Speaker 1: need to be successful in Bunnings will be a little 389 00:21:37,119 --> 00:21:39,199 Speaker 1: bit different to what you need to be successful in 390 00:21:39,240 --> 00:21:41,879 Speaker 1: a lithium refinery, which will be different to what you 391 00:21:41,960 --> 00:21:43,400 Speaker 1: need in a healthcare business. 392 00:21:44,160 --> 00:21:48,400 Speaker 2: But first of all, there are four values that we expect. 393 00:21:49,359 --> 00:21:50,400 Speaker 2: First of all, the. 394 00:21:50,440 --> 00:21:56,840 Speaker 1: Value of accountability is really important. Also, integrity is fundamental. 395 00:21:57,680 --> 00:22:00,520 Speaker 1: Openness is something that's a little bit n I think 396 00:22:00,560 --> 00:22:04,640 Speaker 1: to the West farmers culture. The value of openness, which 397 00:22:04,720 --> 00:22:06,719 Speaker 1: does go to our ways of working, is that we 398 00:22:06,760 --> 00:22:10,720 Speaker 1: say bad news should flow faster than good news. Where 399 00:22:10,840 --> 00:22:14,320 Speaker 1: really an organization that doesn't like people trying to manage 400 00:22:14,359 --> 00:22:18,000 Speaker 1: upwards like only sharing the good news. And openness is 401 00:22:18,040 --> 00:22:21,800 Speaker 1: also being very open with ourselves and each other on 402 00:22:21,840 --> 00:22:23,840 Speaker 1: what we can do better, what can we do better 403 00:22:23,840 --> 00:22:26,920 Speaker 1: to improve because as I said earlier, what good looks 404 00:22:26,960 --> 00:22:29,280 Speaker 1: like today will not be good enough in five years time. 405 00:22:29,880 --> 00:22:33,040 Speaker 1: So I need to make sure that I'm individually getting better, 406 00:22:33,560 --> 00:22:35,840 Speaker 1: our team needs to be getting better, and our businesses 407 00:22:35,920 --> 00:22:39,480 Speaker 1: need to be getting better. So that sense of aspiration 408 00:22:39,760 --> 00:22:44,119 Speaker 1: and openness, together with I guess a degree of humility 409 00:22:44,680 --> 00:22:46,879 Speaker 1: I think is a really important part of our culture. 410 00:22:47,080 --> 00:22:49,959 Speaker 3: The Bunnings group is dominating Australia and New Zealand hardware 411 00:22:49,960 --> 00:22:52,240 Speaker 3: sector and is considered a gym. 412 00:22:52,640 --> 00:22:54,080 Speaker 2: How are the. 413 00:22:54,040 --> 00:22:56,040 Speaker 3: Results going for Bunnings and how much does that make 414 00:22:56,119 --> 00:22:57,680 Speaker 3: up of the Wiz Farmer's portfolio. 415 00:22:57,840 --> 00:23:01,560 Speaker 1: Well, Bunnings is our largest business by well buy both 416 00:23:01,640 --> 00:23:05,840 Speaker 1: sales and by profit, so it's very important. Bunnings represents 417 00:23:06,000 --> 00:23:09,960 Speaker 1: over fifty percent of our earnings and there's still good 418 00:23:10,000 --> 00:23:12,920 Speaker 1: growth prospects there. I know that Kmart has been growing 419 00:23:12,960 --> 00:23:17,359 Speaker 1: their sales and profit arguably at a faster rate than Bunning, 420 00:23:17,480 --> 00:23:20,000 Speaker 1: so he's catching up a bit, but Bunning still has 421 00:23:20,480 --> 00:23:21,120 Speaker 1: a good lead. 422 00:23:21,240 --> 00:23:23,480 Speaker 3: How did you have to adapt the business to compete 423 00:23:23,480 --> 00:23:24,160 Speaker 3: in New Zealand. 424 00:23:24,280 --> 00:23:25,920 Speaker 2: I think there are some things that are the same. 425 00:23:26,240 --> 00:23:31,520 Speaker 1: Number one, bunnings commitment to lowest prices, Bunning's commitment to 426 00:23:33,240 --> 00:23:36,920 Speaker 1: delivering better outcomes for their team in terms of higher wages, 427 00:23:37,240 --> 00:23:40,480 Speaker 1: a really positive culture, the deep engagement the Bunnings has 428 00:23:40,480 --> 00:23:42,200 Speaker 1: with community in New Zealand. 429 00:23:42,280 --> 00:23:43,480 Speaker 2: All those things are the same. 430 00:23:43,960 --> 00:23:47,960 Speaker 1: Interestingly, if you compare the New Zealand market to the 431 00:23:47,960 --> 00:23:51,560 Speaker 1: Australian market in Bunnings, we would have a higher proportion 432 00:23:51,680 --> 00:23:55,600 Speaker 1: of trades, like trades relative to diis a little bit 433 00:23:55,960 --> 00:24:00,239 Speaker 1: a little bit larger. That would be one difference. We 434 00:24:00,280 --> 00:24:02,800 Speaker 1: want to make sure as well that our offer in 435 00:24:02,840 --> 00:24:03,879 Speaker 1: New Zealand. 436 00:24:03,840 --> 00:24:05,719 Speaker 2: Really works for the different communities. 437 00:24:06,520 --> 00:24:10,520 Speaker 1: And as is the case in Australia, a store, the 438 00:24:10,760 --> 00:24:14,639 Speaker 1: Bunning store that you might find inner city Sydney is 439 00:24:14,680 --> 00:24:18,320 Speaker 1: fundamentally different to a store you might find in rural 440 00:24:18,359 --> 00:24:19,280 Speaker 1: New South Wales. 441 00:24:19,560 --> 00:24:21,200 Speaker 2: So the same applies for Bunnings. 442 00:24:21,240 --> 00:24:24,080 Speaker 1: So the stores you'll see, the warehouses you'll see in 443 00:24:24,160 --> 00:24:28,880 Speaker 1: Auckland are quite different to the ones that you'll see in. 444 00:24:29,160 --> 00:24:30,639 Speaker 2: Other regional areas. 445 00:24:30,920 --> 00:24:33,960 Speaker 1: But what you can rely on is that same consistency 446 00:24:34,000 --> 00:24:38,040 Speaker 1: about everyday low pricing, hopefully really great service from our 447 00:24:38,080 --> 00:24:40,920 Speaker 1: team members and good engagement with community. 448 00:24:41,359 --> 00:24:46,679 Speaker 3: How seriously did you consider rebranding Bunnings to Hammerbun Well. 449 00:24:46,440 --> 00:24:50,920 Speaker 1: I know that I think there's a generation of future 450 00:24:51,080 --> 00:24:56,360 Speaker 1: shoppers that probably would resonate the Hammer Bun would resonate 451 00:24:56,400 --> 00:24:59,400 Speaker 1: a lot more strongly than the Bunnings brand. But look, 452 00:24:59,440 --> 00:25:01,879 Speaker 1: the Bunnings brand has been around even longer than the 453 00:25:01,880 --> 00:25:04,120 Speaker 1: West Farmer's brand, so it would be a pretty big 454 00:25:04,160 --> 00:25:04,560 Speaker 1: move to. 455 00:25:04,600 --> 00:25:06,680 Speaker 3: Change I've got a two and a half year old 456 00:25:07,080 --> 00:25:10,320 Speaker 3: who just watched Bloey the whole way over here? Can 457 00:25:10,359 --> 00:25:12,240 Speaker 3: you tell us a bit more about that campaign and 458 00:25:12,280 --> 00:25:13,159 Speaker 3: how that came about. 459 00:25:13,440 --> 00:25:16,320 Speaker 1: When I heard that Bunnings were going to do this, 460 00:25:17,240 --> 00:25:19,600 Speaker 1: I had to ask the question of who Bluey was 461 00:25:20,680 --> 00:25:22,600 Speaker 1: because my kids. 462 00:25:22,480 --> 00:25:25,280 Speaker 2: Are now growing up and have left home. They're at university. 463 00:25:25,400 --> 00:25:28,400 Speaker 1: So yeah, for me, it was the Wiggles and all 464 00:25:28,480 --> 00:25:30,720 Speaker 1: of that where my kids were growing up. But anyway, 465 00:25:30,840 --> 00:25:33,280 Speaker 1: it was so it came about as a result of 466 00:25:33,320 --> 00:25:37,639 Speaker 1: the Bunnings team thinking creatively how to not only not 467 00:25:37,720 --> 00:25:41,439 Speaker 1: only market the brand and promote what they do, but 468 00:25:41,520 --> 00:25:45,840 Speaker 1: also to be really deeply engaged with the community and Bunnings. 469 00:25:45,880 --> 00:25:48,520 Speaker 1: Over the years they run a lot of they run 470 00:25:48,560 --> 00:25:53,360 Speaker 1: a lot of sessions for kids and that was really popular. 471 00:25:53,480 --> 00:25:56,920 Speaker 1: So this was in many ways a really logical, logical 472 00:25:57,000 --> 00:25:57,480 Speaker 1: next step. 473 00:25:57,560 --> 00:25:59,719 Speaker 2: So it was fantastic to see the success of it. 474 00:26:00,240 --> 00:26:03,240 Speaker 1: Team did a great job and as I said, hopefully 475 00:26:03,280 --> 00:26:06,200 Speaker 1: it brings a new generation of shoppers into Bunnings. 476 00:26:06,280 --> 00:26:08,359 Speaker 3: You talked about that you don't think with Farmers will 477 00:26:08,359 --> 00:26:10,239 Speaker 3: look the same in five years, so talk a bit 478 00:26:10,280 --> 00:26:11,080 Speaker 3: about the future. 479 00:26:11,240 --> 00:26:14,040 Speaker 1: Look, the first thing with industry trends. We have made 480 00:26:14,080 --> 00:26:16,880 Speaker 1: some pretty big bets. We've allocated a lot of capital 481 00:26:16,920 --> 00:26:21,880 Speaker 1: to the healthcare sector and to lithium, both areas where 482 00:26:21,920 --> 00:26:26,239 Speaker 1: there are some pretty strong tailwinds around demand. So in 483 00:26:26,280 --> 00:26:31,320 Speaker 1: the next month and a half we'll be hopefully producing 484 00:26:31,359 --> 00:26:35,040 Speaker 1: our first product, which is a lithium hydroxide product in 485 00:26:35,119 --> 00:26:40,160 Speaker 1: Quinana in Western Australia through our Chemicals, Energy and Fertilizers division, 486 00:26:40,200 --> 00:26:45,119 Speaker 1: and that will be a world class lithium hydroxide refinery 487 00:26:45,640 --> 00:26:50,359 Speaker 1: operating on very sustainable standards and that will be able 488 00:26:50,359 --> 00:26:54,960 Speaker 1: to service the international market for electric vehicles over the 489 00:26:55,040 --> 00:26:58,359 Speaker 1: next decade. So that is one of those examples. And 490 00:26:58,400 --> 00:27:02,720 Speaker 1: it's interesting. We used to own coal mines, but we 491 00:27:02,760 --> 00:27:06,639 Speaker 1: realized that although we generated good returns, that wasn't necessarily 492 00:27:06,640 --> 00:27:08,959 Speaker 1: going to be the future for West Farmers, so we 493 00:27:09,040 --> 00:27:12,800 Speaker 1: sold our coal mine and invested in lithium. So that's 494 00:27:12,840 --> 00:27:15,600 Speaker 1: one of those new trends that were hoping to tap into. 495 00:27:16,119 --> 00:27:18,600 Speaker 1: The other one with healthcare is we own a chain 496 00:27:18,680 --> 00:27:24,639 Speaker 1: of pharmacies and we partner with the pharmacists franchisees within 497 00:27:24,680 --> 00:27:28,399 Speaker 1: that network. We also own the largest telehealth business in 498 00:27:28,440 --> 00:27:33,600 Speaker 1: Australia called instance, scripts. We own a mediesthetic skincare business 499 00:27:33,640 --> 00:27:37,920 Speaker 1: called Silk, and we also run a very large pharmaceutical 500 00:27:37,960 --> 00:27:45,520 Speaker 1: wholesale business that is able to get any prescriptions pharmaceuticals 501 00:27:45,600 --> 00:27:48,879 Speaker 1: you need to every pharmacy in the country within twenty 502 00:27:48,880 --> 00:27:52,439 Speaker 1: four hours. So what excites us about this is that 503 00:27:53,600 --> 00:27:57,520 Speaker 1: healthcare costs and demands are increasing, especially with the aging 504 00:27:57,560 --> 00:28:04,159 Speaker 1: of the population. Believe that community pharmacies can play a 505 00:28:04,320 --> 00:28:06,639 Speaker 1: really important role in community health. 506 00:28:06,960 --> 00:28:09,200 Speaker 2: We also believe in the future of telehealth. 507 00:28:09,960 --> 00:28:14,360 Speaker 1: We do work with obviously licensed gps that support our 508 00:28:14,400 --> 00:28:18,480 Speaker 1: telehealth business. So our vision is to try and make 509 00:28:18,560 --> 00:28:23,479 Speaker 1: healthcare more accessible and more affordable through our network. So 510 00:28:23,520 --> 00:28:26,840 Speaker 1: that's the opportunity, so that two big trends that we're 511 00:28:26,840 --> 00:28:30,719 Speaker 1: hoping to tap into. We currently have a number of 512 00:28:30,800 --> 00:28:35,680 Speaker 1: live use cases using generative AI to improve customer service, 513 00:28:35,800 --> 00:28:40,680 Speaker 1: so through chatbots, but also importantly conversational commerce, which could 514 00:28:40,720 --> 00:28:42,200 Speaker 1: transform search as we. 515 00:28:42,200 --> 00:28:43,040 Speaker 2: Know it at the moment. 516 00:28:43,560 --> 00:28:47,760 Speaker 1: Also team member tools, so Bunnings and Office Works have 517 00:28:48,160 --> 00:28:52,120 Speaker 1: voice enabled generative AI tools to give technical information on 518 00:28:52,160 --> 00:28:55,440 Speaker 1: products that can help them service customers. And then in 519 00:28:55,480 --> 00:28:57,960 Speaker 1: a lot of other productivity tools just to help our 520 00:28:58,000 --> 00:29:01,560 Speaker 1: teams do their work. Area that I'm really excited about. 521 00:29:01,880 --> 00:29:03,960 Speaker 1: We're not going to go out and invest in large 522 00:29:04,040 --> 00:29:07,360 Speaker 1: language models or build our own software, but we can 523 00:29:07,400 --> 00:29:11,760 Speaker 1: be really a really sophisticated user of these technologies for 524 00:29:11,840 --> 00:29:14,360 Speaker 1: the betterment of our customers and our shareholders. 525 00:29:14,480 --> 00:29:17,360 Speaker 3: Let's chat about you. You're a dual Olympians, Silver mid 526 00:29:17,760 --> 00:29:20,800 Speaker 3: middle eist investment banker and now CEO. I want to 527 00:29:20,880 --> 00:29:25,040 Speaker 3: Australian's largest companies. What's your secret to thriving under these 528 00:29:25,120 --> 00:29:26,360 Speaker 3: pressure cooker environments. 529 00:29:26,600 --> 00:29:29,720 Speaker 1: The first thing you learned very quickly as a CEO 530 00:29:30,200 --> 00:29:33,360 Speaker 1: is really it's not about you, It's about everyone else 531 00:29:33,400 --> 00:29:37,880 Speaker 1: around you, right, So I think it's ensuring that you 532 00:29:38,000 --> 00:29:41,240 Speaker 1: have phenomenal people working with you. And I don't mean 533 00:29:41,280 --> 00:29:44,480 Speaker 1: good people, I mean phenomenal people. And you come back 534 00:29:44,480 --> 00:29:46,880 Speaker 1: to where we started, which is we want to deliver a. 535 00:29:46,880 --> 00:29:49,440 Speaker 2: Top quartile total shareholder a term. 536 00:29:49,480 --> 00:29:52,080 Speaker 1: We want to be in the best twenty five percent 537 00:29:52,080 --> 00:29:54,360 Speaker 1: of companies over the long term. And if you have 538 00:29:54,480 --> 00:29:57,080 Speaker 1: great people, then they are going to be very capable 539 00:29:57,160 --> 00:30:00,560 Speaker 1: of making the right decisions. So as a leader need 540 00:30:00,640 --> 00:30:04,600 Speaker 1: to create the settings, the culture of the environment and 541 00:30:04,680 --> 00:30:07,280 Speaker 1: the support for them to ultimately get on and make 542 00:30:07,320 --> 00:30:08,719 Speaker 1: the right decisions. 543 00:30:08,240 --> 00:30:10,400 Speaker 3: As there any listens that you've brought over from sporting 544 00:30:10,440 --> 00:30:11,040 Speaker 3: into business. 545 00:30:11,200 --> 00:30:14,120 Speaker 1: When you're training with a group of people that every 546 00:30:14,200 --> 00:30:15,800 Speaker 1: day you get up and you're trying to be the 547 00:30:15,840 --> 00:30:18,280 Speaker 1: best in the world, and every single thing you do, 548 00:30:18,440 --> 00:30:21,479 Speaker 1: from what you eat for breakfast and your training session 549 00:30:21,720 --> 00:30:26,960 Speaker 1: to the stretching and the recovery and the planning and 550 00:30:27,520 --> 00:30:29,640 Speaker 1: all of that is about being the best in the world. 551 00:30:30,360 --> 00:30:32,440 Speaker 1: There came a point in time where it was very 552 00:30:32,480 --> 00:30:34,640 Speaker 1: clear that physically I was not going to be the 553 00:30:34,680 --> 00:30:38,240 Speaker 1: best in the world in sport anymore. But you know, 554 00:30:38,320 --> 00:30:40,520 Speaker 1: I wanted to be part of a team that shared 555 00:30:40,560 --> 00:30:42,800 Speaker 1: a similar sense of ambition. And that's what I love 556 00:30:42,840 --> 00:30:46,280 Speaker 1: about West Farmers. And for a business like Bunnings to 557 00:30:46,280 --> 00:30:49,800 Speaker 1: be successful or came out to be successful, we genuinely 558 00:30:49,880 --> 00:30:51,600 Speaker 1: have to be the best in the world. Like we 559 00:30:51,680 --> 00:30:56,000 Speaker 1: are fighting tooth and nail with companies like Amazon, with Costco, 560 00:30:56,320 --> 00:31:01,360 Speaker 1: with Audi that are really large international companies, best in 561 00:31:01,400 --> 00:31:05,000 Speaker 1: their class. So, you know, that sense of trying to 562 00:31:05,040 --> 00:31:08,640 Speaker 1: be the best in the world, I think translates really 563 00:31:08,680 --> 00:31:10,080 Speaker 1: well from sport to business. 564 00:31:10,160 --> 00:31:14,000 Speaker 3: You've got almost five hundred thousand shareholders. What's one thing 565 00:31:14,040 --> 00:31:15,960 Speaker 3: you'd love for them to take away from this conversation. 566 00:31:16,440 --> 00:31:18,800 Speaker 1: Hopefully they can get some comfort from the fact that 567 00:31:18,840 --> 00:31:22,400 Speaker 1: I'm also a significant shareholder in West Farmers, so our 568 00:31:22,440 --> 00:31:27,280 Speaker 1: interests are very much aligned. I'm only the eighth CEO 569 00:31:27,440 --> 00:31:30,720 Speaker 1: in West Farmers over one hundred and eleven or twelve years, 570 00:31:31,640 --> 00:31:36,160 Speaker 1: and I know, as my predecessors have that our job 571 00:31:36,200 --> 00:31:39,160 Speaker 1: as CEOs is to make sure that we're delivering on 572 00:31:39,200 --> 00:31:43,320 Speaker 1: that top quarter total shareholder return over time. So the 573 00:31:43,360 --> 00:31:47,840 Speaker 1: message to our shareholders is that I am very focused 574 00:31:47,840 --> 00:31:48,719 Speaker 1: on delivering on that. 575 00:31:49,080 --> 00:31:51,520 Speaker 2: I'm also very focused on delivering on that in the 576 00:31:51,600 --> 00:31:52,080 Speaker 2: right way. 577 00:31:52,320 --> 00:31:55,880 Speaker 1: Right We're not a business that makes compromises ethically or 578 00:31:55,920 --> 00:31:59,760 Speaker 1: morally just to try and improve short term performance. Sometimes 579 00:32:00,040 --> 00:32:02,400 Speaker 1: holders have been shareholders for many years, going back to 580 00:32:02,440 --> 00:32:06,600 Speaker 1: the IPO, and that those shareholders that may have taken 581 00:32:06,680 --> 00:32:09,640 Speaker 1: one thousand dollars of shares in the IPO and reinvested 582 00:32:09,640 --> 00:32:13,880 Speaker 1: their dividends that's now worth over a million dollars, and 583 00:32:14,120 --> 00:32:17,880 Speaker 1: those shares have helped them, you know, send their kids 584 00:32:17,920 --> 00:32:21,320 Speaker 1: to school, it's set them up for their retirement. 585 00:32:21,720 --> 00:32:24,760 Speaker 2: That makes us really really happy to hear those stories. 586 00:32:24,920 --> 00:32:27,240 Speaker 3: So before we reap, do you have a favorite quote 587 00:32:27,320 --> 00:32:30,360 Speaker 3: or piece of advice that you've picked up along the way. 588 00:32:30,600 --> 00:32:34,200 Speaker 1: One of my favorite quotes is when the horse is dead, 589 00:32:34,240 --> 00:32:37,680 Speaker 1: get off, And I think that actually has a lot 590 00:32:37,720 --> 00:32:41,480 Speaker 1: of relevance in investing. So for your investors out there, 591 00:32:41,920 --> 00:32:44,680 Speaker 1: sometimes you need to know when to you know when 592 00:32:44,720 --> 00:32:47,200 Speaker 1: to get out right. Hopefully that won't be the case 593 00:32:47,240 --> 00:32:49,280 Speaker 1: with West Farmers right. But look, if there is a 594 00:32:49,360 --> 00:32:52,040 Speaker 1: quote that I think is very inspiring and relevant, it's 595 00:32:52,080 --> 00:32:56,440 Speaker 1: that old Roosevelt quote the critic. It just talks about 596 00:32:56,480 --> 00:33:00,000 Speaker 1: how easy it is to be the critic. But really 597 00:33:00,120 --> 00:33:03,160 Speaker 1: what matters in life, it's the person in the arena 598 00:33:03,280 --> 00:33:07,120 Speaker 1: that's trying that failing, they're getting up, they're having another go. 599 00:33:08,320 --> 00:33:12,560 Speaker 1: And you know, in history, in life, in business, in sport, 600 00:33:14,160 --> 00:33:18,360 Speaker 1: it is those people that ultimately create value, create change, 601 00:33:18,600 --> 00:33:21,880 Speaker 1: do special things. And i'd like to think that, you know, 602 00:33:22,000 --> 00:33:24,720 Speaker 1: in the West Farmers group, we have far more people 603 00:33:24,720 --> 00:33:27,960 Speaker 1: in the arena having a go than we do critics 604 00:33:27,960 --> 00:33:29,880 Speaker 1: sitting on the sideline commenting on things. 605 00:33:30,040 --> 00:33:32,760 Speaker 3: Well, thanks hats for joining us wrong, Thank you very much. 606 00:33:32,880 --> 00:33:33,479 Speaker 2: It's a pleasure