Woolworths Group Ltd · ASX:WOW
Woolworths — Merger or Acquisition (October 2005)
7 slides from Woolworths's merger presentation, Oct 26, 2005
Slide 1: ASX cover letter: Listing Rule 3.1 Taverner presentation
WOOLWORTHS LIMITED A.B.N 88 000 044 675 26 October 2005 The Manager Companies Australian Stick Exchange Limited Sydney Issuers Exchange Centre Level 6 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, RE: WOOLWORTHS LIMITED — LISTING RULE 3.1 1 attach materials to be distributed relating to a present
Slide 2: Woolworths Limited, 26 October 2005
26 October 2005 ‘ WOOLWORTHS LIMITED
Slide 3: Bruandwo to acquire 100% of Taverner Hotel Group
Q Bruandwo to acquire 100% of the shares in Taverner Hotel Group; QO Enterprise Value of $380m, payable on completion subject to normal commercial conditions; OQ Expected completion date of late calendar year 2005; ©) Debt funds to be raised by WOW to fund acquisition; Q WOW to raise c$600m in hybri
Slide 4: Taverner operates leasehold hotels in Victoria, South Australia and NSW
Operates 33 leasehold hotels in Victoria (18), South Australia (12) & NSW (3); « Average leasehold is approx. 27 years; «Focus is on large scale metropolitan (non CBD, non country) profitable hotels Venues are large and typically have a gaming room, multiple bars, a bistro, a wagering facility, a re
Slide 5: Taverner generates strong profits and cash flows
O Taverner generates strong profits and cash flows FY06 PRO FORMA SEGME. TAL SALES RPY06 PRO FORMA P&L Other — 5% Sales Retail Gaming 85.0 26° Ber 578 “ . Food 335 Gaming Retail er7 34% Other 129 Total Sales 257.0 Total Gross Profit 1173 Gross Margin (%) 69.0% EBITDA 40.0 EBITDA Margin (%) 15.6% Bar
Slide 6: Excellent strategic fit with existing hotel and retail liquor business
OQ Excellent strategic fit with existing hotel and retail liquor business; = Allsites are in good to premium locations «Victoria ~ excellent fit and supplements existing network in mainly outer-metropolitan growth corridors of Melbourne with limited overlap « SA ~— very good hotels with opportunity
Slide 7: Key areas of synergies include
OQ Key areas of synergies include: Head office and overhead savings Liquor buying and food buying Retail re-branding and re-merchandising Insurance savings Dan Murphy rollout potential Q Hotels in good condition — limited capex required WOOLWORTHS LIMITED