Ann: Results for announcement to the market, page-23

I find the discussion on cost of capital vs returns in their preso (pgs 22-25) quite mystifying. In this age of miniscule interest rates and given their 'cost of capital' for shareholder equity is nothing (they don't have to pay dividends) how can their WACC be equal or higher than ROFE? They would be selling stuff at cost to achieve that. And their obsession with reducing debt is also strange - in a very low interest environment isn't it better to use more of debt funding? In any case the presentation seems to show that they are out of ideas as to how to generate more profits.