December 1, 2006

Wesfarmers Ltd.
Primary Credit Analyst: Brenda Wardlaw, Melbourne (61) 3-9631-2074; brenda_wardlaw@standardandpoors.com Secondary Credit Analyst: Peter Stephens, Melbourne (61) 3-9631-2078; peter_stephens@standardandpoors.com

Table Of Contents
Major Rating Factors Rationale Outlook Debt Issue Analysis Business Description Business Risk Profile Financial Risk Profile Peer Analysis

www.standardandpoors.com/ratingsdirect

1
548653 | 301078787

Wesfarmers Ltd.
ISSUER CREDIT RATINGS Wesfarmers Ltd. Corporate Credit Rating Lumley General Insurance (N.Z.) Ltd. Corporate Credit Rating Local currency Lumley General Insurance Ltd. Corporate Credit Rating Local currency Wesfarmers Federation Insurance Ltd. Corporate Credit Rating Local currency AFFIRMED RATINGS Wesfarmers Ltd. Sr unsecd debt Local currency CP Local currency Business risk profile: Strong Financial risk profile: Intermediate Debt maturities: (As of June 30, 2006) 2007: A$469 million 2008: A$503 million 2009: A$572 million Bank lines: A$500 million evergreen facilities maturing between October and December 2008 A$180 million bill facilities maturing May 2008 A$650 million 364-day facilities A$300 million 364-day commercial paper backup facilities maturing between January 2007 and January 2008 NZ$130 million cash advance facilities maturing in May 2007 A$115 million multi-option facility maturing in December 2007 Corporate credit rating history: Feb. 20, 2002 A-/A-2 A-/Stable/A-2

A-/Stable/--

A-/Stable/--

A-/Stable/--

AA-2

Standard & Poors | RatingsDirect on the Global Credit Portal | December 1, 2006

2
548653 | 301078787

Wesfarmers Ltd.

Major Rating Factors

Strengths
Diversified portfolio of well-managed business units Reduced exposure to more volatile sectors following ongoing portfolio changes Strong cash flow generation Track record in using equity to mitigate acquisition risk for sizable transactions

Weaknesses
An active acquisition strategy requires careful management of the company's financial profile Some business units remain exposed to competitive and cyclical market conditions Integration risk associated with recently acquired businesses

Rationale
The ratings on Wesfarmers Ltd. reflect the company's portfolio of well-managed, midsize Australian-based businesses, some of which compete in cyclical and competitive sectors. Wesfarmers has maintained a solid financial profile with strong cash flow protection measures, but has shown a willingness to tolerate gearing levels outside its target range for strategic acquisitions. Wesfarmers is a diversified industrial conglomerate, with strong, established market positions in a number of sectors. Key business divisions include home-improvement retailing, energy, insurance, chemicals and fertilizers, and industrial and safety products. These divisions have different business dynamics, providing a strong degree of protection to cash flows. Business unit diversification reduces exposure to downturns in individual sectors, especially where the operating environment is more competitive or has cyclical demand patterns. The company's business position has been enhanced in recent years through a number of acquisitions and divestments. Ongoing growth in the insurance division following the acquisition of OAMPS Ltd. (not rated) will further reduce the company's exposure to more volatile businesses such as fertilizers. The energy division is also set to expand if Wesfarmers is successful in its proposed acquisition of Linde Gas Pty Ltd. (Linde) from Linde AG (BBB-/Stable/A-3) for about A$500 million. A challenge for Wesfarmers is to maintain its strong financial performance as the company expands. Wesfarmers' financial profile benefits from strong free cash flows, the stability of which is supported by the company's diversified business operations. Reported net profit, excluding the impact of the sale of its shareholding in Australian Railroad Group (ARG), rose 24% to A$869 million in its fiscal year ended June 30, 2006. Increased earnings from the energy and home improvement divisions offset lower contributions from the chemicals and fertilizers, insurance, and the industrial and safety divisions. The largest boost to earnings was increased export coal sales and high coal prices. Group earnings for fiscal 2007 are likely to be slightly lower than in 2006, as coal prices weaken from recent peaks. Funds from operations (FFO) to total debt (operating lease-adjusted) was 59.6% in fiscal 2006, up from 38.2% in 2005, reflecting the strength of cash flows and lower debt. Wesfarmers' strong free-operating cash flow (FOC) generation is a key positive factor for the credit. In fiscal 2006, FOC was A$733 million, despite significant capital expenditure of A$615 million. With the exception of transaction-driven short-term deviations, an operating lease-adjusted ratio of FFO/debt in the range of 35%45% and EBITDA interest cover above 8x (10.4x in 2006) is consistent with the current rating. The

www.standardandpoors.com/ratingsdirect

3
548653 | 301078787

Wesfarmers Ltd.

rating anticipates that management will continue to extend the company's portfolio through further acquisitions across its business units.

Short-term credit factors

The company's strong liquidity position is evident from its A$90 million in cash at June 30, 2006, and undrawn committed bank facilities of about A$940 million, with debt maturities of A$469 million in fiscal 2007. Wesfarmers continues to meet its negative-pledge financial covenants comfortably, and is permitted to exceed the targets in certain circumstances. There are no rating triggers in Wesfarmers' bank documents. Capital expenditure on fixed assets of A$615 million was higher than previous years, but continues to be met comfortably through internal cash flows.

Outlook
The stable outlook reflects Standard & Poor's expectation that Wesfarmers will maintain its strong financial profile, despite anticipated further growth and diversification of the business. If the Linde acquisition proceeds, Standard & Poor's will review the transaction, including the intended funding mix and potential integration risks, to determine any potential rating impact. Wesfarmers has demonstrated its ability to maintain a strong financial profile while undertaking growth opportunities. The current rating on Wesfarmers anticipates that management will continue to extend the company's portfolio through further acquisitions across its business units. An upward rating trend would require sustained improvement in key credit metrics and more conservative financial policy parameters. Any large-scale acquisitions in higher-risk industries or geographies that posed significant integration risks, and were largely debt-funded, could have negative rating implications.

Debt Issue Analysis

Wesfarmers issues commercial paper (CP) and medium term notes (MTNs) from its A$1.5 billion MTN/CP program. Bank facilities include an A$300 million CP backup facility, A$680 million in term facilities, A$650 million 364 day facilities, and facilities for businesses in New Zealand and Bangladesh. Wesfarmers Ltd. is the borrower for all facilities, except the New Zealand cash advance (NZ Finance Holdings, guaranteed by Wesfarmers) and the minimal secured facilities for the Bangladeshi gas business (Wesfarmers Kleenheat Elpiji Ltd.). The group's institutional borrowings are subject to a negative pledge, with borrowing levels governed by the following key financial covenants: secured liabilities to be less than 10% of total assets, and shareholders' equity not to fall below A$600 million. Wesfarmers continues to meet its negative-pledge financial covenants comfortably, and is permitted to exceed the targets in certain circumstances. There are no rating triggers in Wesfarmers' bank documents.

Business Description
Recent spate of M&A activity
Wesfarmers is a publicly listed, diversified industrial conglomerate, with strong established market positions in a number of sectors. In fiscal 2006, the company's business divisions included home-improvement retailing, energy, insurance, chemicals and fertilizers, and industrial and safety products. These divisions have different business dynamics and cycles, providing a strong degree of protection to cash flows (see table 1). In September 2006,

Standard & Poors | RatingsDirect on the Global Credit Portal | December 1, 2006

4
548653 | 301078787

Wesfarmers Ltd.

Wesfarmers announced a cash bid for Australian-based insurer OAMPS Ltd. that valued the target company at about A$700 million. The bid was successful and Wesfarmers moved to compulsory acquisition of the remaining shares after gaining more than 90% acceptances in November 2006. The acquisition will be partly funded with proceeds from the sale of Wesfarmers 50% shareholding in ARG, completed in June 2006. Wesfarmers received A$425 million (net of debt) for its share of ARG. A successful acquisition of Linde will strengthen Wesfarmers' market position in the domestic gas sector.
Table 1

Wesfarmers Ltd. Segmentation of OperationsFiscal 2006

Operating revenue Sector Home improvement Energy** Industrial and safety Insurance Chemicals and fertilizers Other Total (Mil. A$) 4,275.5 1,676.1 1,177.7 1,117.2 595.2 17.1 8,858.8 EBIT* (%) (Mil. A$) 48.3 420.4 18.9 13.3 12.6 6.7 0.2 100.0 627.2 96.8 124.8 81.4 307.1 1,657.7 Assets (%) (Mil. A$) 25.4 2,340.5 37.8 5.8 7.5 4.9 18.5 100.0 1,595.9 900.9 1,562.6 565.7 185.4 7,151.0 (%) 32.7 22.3 12.6 21.9 7.9 2.6 100.0

*EBIT is after goodwill amortization. **The Energy division was recently split into two divisions: coal and energy.

Business Risk Profile

Despite Wesfarmers' ongoing expansion, its growth strategy has been relatively low-risk, with an emphasis on return on investment, rather than absolute size and growth parameters. The company's growth strategy has broadened operations by product and geographic location. While Wesfarmers has some exposure to the export market through its energy division, its operations are virtually all based in Australia and New Zealand.

Home improvement: Bunnings chain is the market leader

Home improvement retailing is sensitive to the level of building and construction activity in Australia, as well as the level of discretionary household income. The development of new warehouse stores and refurbishment of existing stores remains a key focus, with smaller competitors losing market share over time. Wesfarmers' home-improvement division, trading as Bunnings, is the market leader, with a share of about 13% of the broad home-improvement market, which also includes, for example, specialist paint shops and bathroom-supply retailers.
Table 2

Wesfarmers Ltd. Financial SummaryHome improvement

--Year ended June 30-Mil. A$ Revenue EBIT Assets EBIT/revenue (%) EBIT/assets (%) 2006 4,275.5 420.4 2,340.5 9.8 18.0 2005 4,065.3 415.7 2,241.7 10.2 18.5 2004 3,845.7 334.7 2,248.4 8.7 14.9 2003 3,474.5 299.0 2,303.3 8.6 13.0 2002 3,066.3 250.5 2,421.2 8.2 10.3

Stronger trading conditions in the second half of the year contributed to higher segment EBIT of A$420.4 million,

www.standardandpoors.com/ratingsdirect

5
548653 | 301078787

Wesfarmers Ltd.

up marginally on 2005. Net of costs associated with the employee share plan following recent accounting changes to Australian equivalents to International Financial Reporting Standards (A-IFRS) and refurbishment costs, the home-improvement division's comparative growth in earnings was 6.5% in fiscal 2006 (see table 2). Although sales volumes are vulnerable to downturns in residential construction, a strong focus on the 'do-it-yourself' segment partially mitigates vulnerability to building cycles associated with trade customers. A refocusing on trade customers saw the establishment of a network of stand-alone trade distribution sites. The outlook for fiscal 2007 is for continued retail sales growth, and modest trade sales improvement.

Energy: Record coal prices help bolster earnings

Although capital intensive, the company's energy operations generally are low-risk, as long-term supply and sales contracts underpin stable margins. Operations include coal mining, liquefied petroleum gas (LPG) distribution and extraction, distribution of industrial gases, gas appliance sales, and electricity supply. Earnings for the segment in fiscal 2006 of A$627.2 million were almost double the A$317.1 million in 2005, boosted by a 210% earnings lift for the coal operations, reflecting higher export volumes and prices. Earnings for the gas and power operations were slightly below those for 2005, reflecting higher global LPG prices and distribution costs, which squeezed margins. Earnings from both the EnGen electricity generation business and the 40%-owned Air Liquide W.A. were both up on 2005 levels (see table 3).
Table 3

Wesfarmers Ltd. Financial SummaryEnergy*

--Year ended June 30-Mil. A$ Revenue EBIT* Assets EBIT/revenue (%) EBIT/assets (%) 2006 627.2 37.4 39.3 2005 317.1 27.3 24.4 2004 239.4 23.7 23.4 2003 339.6 31.3 33.7 2002 963.5 236.5 24.5 21.9 1,676.1 1,161.5 1,008.6 1,083.8

1,595.9 1,300.4 1,024.6 1,009.1 1,080.6

*The Energy division was recently split into two divisions: coal and energy.

Wesfarmers' Collie coal mine supplies steaming coal under a long-term supply contract to Verve Energy (potentially to 2030), and to other users. The mine supplies a captive market, and is not exposed to global price fluctuations. Wesfarmers also holds a 40% interest in the Bengalla coal joint venture in New South Wales, and owns the Curragh coal mine in Queensland. Long-term access to LPG is a critical factor for Wesfarmers' gas businesses. An agreement negotiated with Alinta Ltd. (BBB/Negative/) in June 2005 provides a long-term basis for Wesfarmers to continue to extract LPG from the Dampier-to-Bunbury Natural Gas Pipeline. LPG distribution is a relatively high-margin and capital-intensive business. The Kwinana plant supplies much of Western Australia's domestic market, while more than half of Wesfarmers' LPG production is exported to Japan under a long-term sales contract with Marubeni Corp. (BBB-/Stable/). Wesfarmers' Kleenheat business is a major distributor of LPG and gas appliances to a broad range of domestic, commercial, automotive, and industrial customers. The industrial gases sector is capital intensive, with significant start-up costs providing high barriers to entry. The wide application of industrial gases ensures relatively stable demand patterns. Air Liquide W.A.'s industrial gas activities benefit from proximity to nickel and gold mines in Western Australia.

Standard & Poors | RatingsDirect on the Global Credit Portal | December 1, 2006

6
548653 | 301078787

Wesfarmers Ltd.

Wesfarmers' energy division has recently been restructured into separate coal and energy (gas and power) divisions. The outlook for Wesfarmers' coal business will benefit from firm demand and above-average prices, although prices will be lower than their recent record levels. Earnings from the energy business remain dependent on international LPG prices and production volumes from the Kwinana extraction plant. The investment of A$138 million to build a liquefied LNG plant, together with the potential acquisition of the Linde business, will strengthen Wesfarmers' position in the domestic energy market through the manufacture and distribution of a broad range of gases for industrial, medical, and speciality applications.

Industrial and safety distribution: Challenges remain

The industrial and safety division remains a challenge with respect to generating improved returns; however, recent management changes are expected to assist. Wesfarmers benefits from a strong market share and an emphasis on customer service, both of which are critical to maintaining margins in these business sectors. The industrial operations include supply and distribution of maintenance, repair, and operating products under the Blackwoods banner. The Protector Alsafe division undertakes distribution of industrial safety products and services. Lower divisional earnings in fiscal 2006 reflected restructuring costs, employee share plan costs (A-IFRS), and difficult trading conditions in New Zealand (see table 4). The outlook is mixed, with expectations for strong demand from mining and infrastructure, but ongoing pressure in the manufacturing sector and weaker conditions in New Zealand.
Table 4

Wesfarmers Ltd. Financial SummaryIndustrial and Safety Distribution

--Year ended June 30-Mil. A$ Revenue EBIT Assets EBIT/revenue (%) EBIT/assets (%) 2006 1,177.7 96.8 900.9 8.2 10.7 2005 1,174.7 108.8 946.2 9.3 11.5 2004 1,150.6 86.8 934.0 7.5 9.3 2003 1,112.0 91.9 919.1 8.3 10.0 2002 1,055.4 61.7 966.7 5.9 6.4

Insurance: Acquisitions build scale

The insurance division is set to become the second-largest division behind home improvement, based on revenue, following the recent acquisition of OAMPS. The acquisition of OAMPS will provide scale and synergy benefits, as OAMP's specialist transport insurance and regional distribution network align well with Wesfarmers' existing insurance operations. The OAMPS acquisition follows the acquisition of the Australian and New Zealand operations of Lumley Insurance in October 2003. Results for the insurance division were weaker in fiscal 2006, reflecting the adverse impact of several significant weather events (see table 5). Underlying earnings for fiscal 2007 are likely to be constrained by competitive pressures and the level of claims; however, there will be a positive impact from the acquisition of OAMPS in the second half. For further information on Wesfarmers' rated insurance subsidiaries refer to Wesfarmers Federation Insurance Ltd., Lumley General Insurance Ltd., and Lumley General Insurance (N.Z.) Ltd.
Table 5

Wesfarmers Ltd. Financial SummaryInsurance

--Year ended June 30-Mil. A$ 2006 2005 2004 2003

www.standardandpoors.com/ratingsdirect

7
548653 | 301078787

Wesfarmers Ltd.

Table 5

Wesfarmers Ltd. Financial SummaryInsurance (cont.)

Revenue EBIT Assets EBIT/revenue (%) EBIT/assets (%) 1,117.2 124.8 1,562.6 11.2 8.0 1,125.6 134.9 1,513.4 12.0 8.9 874.0 88.3 1,666.5 10.1 5.3 223.2 25.2 293.7 11.3 8.6

Chemicals and fertilizers: Strong regional market positions

The chemical and fertilizer operations are small-scale and do not have globally competitive cost positions. High transport costs, however, create regional fertilizer markets. Wesfarmers 75%-market leadership position in the Western Australian market is also supported by strong distribution networks and a diverse customer base, covering a broad range of crops and pasture-based activities. Furthermore, significant establishment costs act as a barrier to entry. Fertilizer sales demonstrate a high degree of seasonality and cyclicality, with margins affected by the volatility of international fertilizer prices, which influence domestic prices. The large volume of fertilizer imported by Wesfarmers mitigates some of this volatility. The chemicals business operations also have higher-than-average risk characteristics due to cyclicality, exposure to volatility for some feedstock costs, and capital intensity. The Kwinana chemical plant is small by global standards, meaning fixed costs are relatively high. This is offset, however, by a strong regional market position, significant technical skills, and a transport cost advantage. Wesfarmers has commenced the expansion of the Kwinana ammonium nitrate plant in Western Australia to increase production capacity by 235,000 tonnes per annum.
Table 6

Wesfarmers Ltd. Financial Summary--Chemicals and Fertilizers

--Year ended June 30-Mil. A$ Revenue EBIT Assets EBIT/revenue (%) EBIT/assets (%) 2006 595.2 81.4 565.7 13.7 14.4 2005 586.9 89.4 521.8 15.2 17.1 2004 518.5 85.4 566.6 16.5 15.1 2003 473.6 78.6 541.3 16.6 14.5 2002 463.9 73.3 511.8 15.8 14.3

While earnings from the chemicals business were in line with 2005, fertilizer earnings were down due to adverse seasonal conditions (see table 6). Historically, more than 70% of fertilizer sales occur in the second half of the fiscal year. A poor start to the 2006 growing season will adversely impact fiscal 2007 earnings; however, strong demand from the resources sector for Wesfarmers' chemical products is a mitigating factor.

Other operations
Earnings from the Wespine plantation pine sawmill (Wesfarmers has a 50% share in this asset) were in line with the previous year. Earnings from Wesfarmers' partly owned investment house, Gresham Partners, vary from year-to-year, largely depending on the timing of divestments. Two divestments and one investment were made during fiscal 2006. Wesfarmers sold its 50%-owned ARG business in June 2006.

Standard & Poors | RatingsDirect on the Global Credit Portal | December 1, 2006

8
548653 | 301078787

Wesfarmers Ltd.

Financial Risk Profile

Financial and accounting policies
Wesfarmers has a focus on generating returns to shareholders, and traditionally has maintained an intermediate financial profile. The company aims to have a ratio of net debt to equity of 50%75% (46.1% in fiscal 2006), allowing for spikes above this level to accommodate acquisitions. Wesfarmers' target range equates to about 33%43% net debt to capitalization, or 35%45% for total debt to capitalization. Wesfarmers also aims for a return on shareholders' funds of at least 20% (31.1% in fiscal 2006 excluding ARG), interest cover of at least 4x on a net cash basis (13.8x in fiscal 2006), and pays out 90%100% of profits as dividends to the extent of available franking credits. Wesfarmers uses a combination of equity and debt to fund large acquisitions to mitigate financial risk. Standard & Poor's uses an operating lease discount rate for retailers to 8.5%. Given that the majority of Wesfarmers' operating leases are for the Bunnings store network, this rate has been applied to Wesfarmers' operating leases. Accounts were prepared in line with A-IFRS from July 1, 2005. Restatements arising from the adoption of AIFRS were not material and have not impacted Standard & Poor's analysis, which principally focuses on cash flow measures.

Cash flow adequacy.

Wesfarmers' diversity mitigates exposure to cyclical demand patterns in building products and fertilizer operations. Net earnings rose 24% to A$869 million in fiscal 2006 (excluding the profit on the sale of the 50% shareholding in ARG). Increased earnings from the energy and home-improvement divisions offset lower contributions from chemicals and fertilizers, insurance, and the industrial and safety divisions. The largest boost to earnings was increased export coal sales and high coal prices. Group earnings for fiscal 2007 are likely to be slightly lower than in 2006 as coal prices weaken from recent peaks. The strength of operating lease-adjusted return on permanent capital (ROPC; 30.7% in fiscal 2006), and operating income to sales (22.9% in fiscal 2006) in recent years are positive factors. Growth in the home-improvement, energy, and insurance divisions have further reduced the impact of seasonality of cash flows from the fertilizer operations. Strong cash flow protection measures are a positive rating factor, evidenced by operating lease-adjusted EBITDA coverage of interest at 10.4x and FFO to total debt at 59.6% in fiscal 2006. The company's aim is for a net cash interest cover of at least 4x; Wesfarmers has consistently outperformed this measure by a significant margin (13.8x in 2006). Furthermore, Wesfarmers' strong free cash flow generation (A$733.3 million in 2006) provides significant funding flexibility. Capital expenditure on fixed assets of A$615 million was higher than previous years, but continues to be met comfortably through internal cash flows.

Capital Structure
Debt usage is typically moderate, and Standard & Poor's expects that Wesfarmers will continue to use a mix of debt and equity to fund asset growth. Wesfarmers' target gearing range is between 50% and 75% net debt to equity, and was 46.1% at June 30, 2006. The group's operating lease-adjusted ratio of total debt to capitalization was 41.6% in fiscal 2006, reflecting lower debt levels and higher equity (principally due to higher retained earnings). Following the sale of the shareholding in ARG, off-balance sheet debt is now minimal. Wesfarmers' demonstrated willingness and ability to raise equity to partially fund major acquisitions is a positive rating factor, while the company's diversified business profile contributes a degree of financial flexibility.

www.standardandpoors.com/ratingsdirect

9
548653 | 301078787

Wesfarmers Ltd.

Peer Analysis
Peer analysis for an industrial conglomerate like Wesfarmers is difficult given the lack of comparable peers with a similar business mix. While Standard & Poor's rates a number of diversified global industrial conglomerates, they mainly operate in the aerospace, engineering, and telecommunications sectors. Orica Ltd. (BBB+/Negative/A-2) is an Australian-based industrial conglomerate with an operational base covering commercial explosives, niche chemicals, consumer products, and fertilizers. As Wesfarmers' home-improvement division was the largest contributor to revenues and profits in fiscal 2006, U.S.-based home-improvement companies Home Depot Inc. (AA/Stable/A-1+) and Lowes Cos. Inc. (A+/Stable/A-1) are also included as peers. Home Depot is the market leader in the fragmented U.S. home-improvement industry and is twice the size of the nearest competitor Lowes Cos. Inc.
Table 7

Peer Comparison
Company Year ended Issuer credit rating Sales Net income Funds from operations (FFO) Capital expenditure Total debt Shareholders equity Ratios EBIT interest cover (x) EBITDA interest cover (x) Return on permanent capital (%) Operating income to sales (%) FFO/debt (%) Total debt to capital (%) Total debt to EBITDA (x) Wesfarmers Ltd. Home Depot Inc. Lowe's Cos. Inc. June 30, 2006 Jan. 31, 2006 Jan. 31, 2006 A-/Stable/A-2 Mil. A$ 8,818.3 1,048.1 1,219.6 614.8 1,542.9 3,166.0 AA/Stable/A-1+ Mil. US$ 81,511.0 5,838.0 7,477.0 4,515.8 8,880.8 26,909.0 Mil. US$ 43,243.0 2,771.0 3,993.9 3,844.6 6,050.9 14,339.0 Orica Ltd. Sept. 30, 2006 Mil. A$ 4,745.6 120.5 334.2 385.7 1,712.6 2,423.2

A+/Stable/A-1 BBB+/Negative/A-2

8.3 10.4 30.7 22.9 59.6 41.6 1.1

16.8 19.4 28.5 14.3 84.2 24.8 0.8

11.5 13.7 25.0 13.7 66.0 29.7 1.0

2.1 3.0 9.4 8.9 19.7 42.6 3.7

Note: Ratios adjusted to reflect capitalization of operating leases.

Table 8

Wesfarmers Ltd. Financial Data

Year ended June 30* Currency (Mil. A$) Profit & loss Sales revenue EBITDA Earnings before interest & tax Gross interest Operating profit after tax 2006 8,818.3 1,871.7 1,588.2 138.3 1,035.5 2005 8,101.1 1,230.9 1,042.0 105.8 673.1 2004 7,441.5 1,574.0 1,294.6 80.3 850.5 2003 7,425.8 1,153.1 861.1 80.2 530.2 2002 7,192.5 981.6 689.4 94.1 402.2

Standard & Poors | RatingsDirect on the Global Credit Portal | December 1, 2006

10
548653 | 301078787

Wesfarmers Ltd.

Table 8

Wesfarmers Ltd. Financial Data (cont.)

Cash flow EBITDA Interest expense Tax paid Funds from operations (FFO) Non-cash working capital movement Capital expenditure: fixed assets Free operating cash flow (FOC) Dividends paid Discretionary cash flow Balance sheet Assets Cash & deposits Goodwill & intangibles Non-current assets (fixed) subtotal Total assets Liabilities & equity Current debt Non-current debt Shareholders' equity Key financial ratios (lease-adjusted) Operating income/sales (%) (lease adjusted) Pretax interest cover (X) (lease adj) EBITDA interest cover (X) (lease adjusted) FFO/total debt (%) (lease adj) FOC/total debt (%) (lease adjusted) Total debt/total debt + shareholder equity (%) (lease adj) Return on permanent capital (%) (lease adjusted) Total debt/EBITDA (x) (lease adjusted) 90.0 1,470.2 2,396.2 7,515.1 83.8 1,466.3 1,988.2 7,152.8 103.4 1,472.7 1,600.1 7,271.4 170.2 1,519.9 1,960.2 6,689.7 171.9 1,601.3 2,125.4 6,919.0 1,871.7 133.8 307.2 1,219.6 (128.5) 614.8 733.3 707.7 25.7 1,230.9 104.2 296.3 838.8 (341.5) 465.3 715 528.2 186.8 1,574.0 80.3 243.1 840.3 429.9 258.2 152.2 479.6 (327.5) 1,153.1 80.2 142.9 831.9 91.1 218.3 522.6 333.4 189.2 981.6 94.1 148.8 728.4 404.3 230.4 93.7 164.6 (70.9)

468.0 1,074.9 3,166.0

574.9 1,225.1 2,742.2

309.8 1,302.1 3,330.5

384.3 671.8 3,765.1

582.7 906.5 3,410.1

22.9 8.3 10.4 59.6 32.5 41.6 30.7 1.1

16.6 6.9 8.8 38.2 28.7 47.6 20.2 1.8

22.8 10.6 13.6 43.3 7.0 39.5 24.5 1.3

17.2 7.3 10.4 58.3 32.9 29.6 16.8 1.2

14.6 5.9 8.8 39.8 4.7 36.7 17.2 1.9

*Australian equivalents to International Financial Reporting Standards were applied to accounts in 2006 and 2005, while Australian Generally Accepted Accounting Principles were applied for previous years.

Ratings are statements of opinion, not statements of fact or recommendations to buy, hold, or sell any securities. Standard & Poor's (Australia) Pty. Ltd. does not hold an Australian financial services license under the Corporations Act 2001. Any rating and the information contained in any research report published by Standard & Poor's is of a general nature. It has been prepared without taking into account any recipient's particular financial needs, circumstances, and objectives. Therefore, a recipient should assess the appropriateness of such information to it before making an investment decision based on this information.

www.standardandpoors.com/ratingsdirect

11
548653 | 301078787

Copyright 2011 by Standard & Poors Financial Services LLC (S&P), a subsidiary of The McGraw-Hill Companies, Inc. All rights reserved. No content (including ratings, credit-related analyses and data, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of S&P. The Content shall not be used for any unlawful or unauthorized purposes. S&P, its affiliates, and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions, regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the Content even if advised of the possibility of such damages. Credit-related analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P's opinions and analyses do not address the suitability of any security. S&P does not act as a fiduciary or an investment advisor. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. S&P may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.

Standard & Poors | RatingsDirect on the Global Credit Portal | December 1, 2006

12
548653 | 301078787