Slide 1: FY22 Full Year Results
FY22 FULL YEAR RESULTS 27 JUNE 2022
Slide 2: Acknowledgment, Group Overview and Divisional Results
ACKNOWLEDGMENT, GROUP OVERVIEW AND DIVISIONAL RESULTS Doug Jones Group Chief Executive Officer 2 2
Slide 3: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY I would like to acknowledge the traditional custodians of the lands from which we are all connecting in from today. I am connecting in from Wallumedegal Country, and pay my respects to elders across Country, past, present and emerging. Care for Country, Maggie-Jean Douglas
Slide 4: About Metcash: Our Purpose, Values, Vision
ABOUT METCASH OUR OUR OUR PURPOSE VALUES VISION Championing successful We believe: • Best store in town Independence is worth fighting independents • Passionate about independents for; in treating our people, retailers and suppliers the way • A favourite place to work we like to be treated; and in •
Slide 5: Group Highlights
GROUP HIGHLIGHTS Continued progress on exceptional FY21 performance • Further improvement in competitiveness of retail networks through success of MFuture initiatives Strong results reflect • Continuation of local neighbourhood shopping trend momentum and good • Resilience and flexibility of network
Slide 6: Group Highlights
GROUP HIGHLIGHTS Group revenue1 Group EBIT UPAT Continuation of strong momentum +6.4% +17.7% +18.6% to $17.4bn to $472m to $300m (+17.2% 2yr) (+41.0% 2yr) (+50.7% 2yr) Operating Underlying EPS Total FY22 cashflow dividends Record Group revenue¹ $432m +23.5% +22.9% CRR ~91% to 30.5c per share to 21.5
Slide 7: 2H22 – Further Significant Challenges
2H22 – FURTHER SIGNIFICANT CHALLENGES Operational responsiveness and flexibility Issue Impact Response • COVID 19 • Supply chain and operational • Established onsite health clinics • Delta outbreak 1H22 disruptions • Worked closely with Government and industry to support safe • Omicron 2H22 • Elevat
Slide 8: Improvement in ESG Credentials
IMPROVEMENT IN ESG CREDENTIALS Our Communities Environment & People & Products Climate • Safety performance improved • Donations to local community • Target set for net zero emissions by slightly despite COVID challenges organisations ~$2.4m largely via IGA 2040 Our • Won NSCA Safety Excellence Awar
Slide 9: Results Overview by Pillar
RESULTS OVERVIEW BY PILLAR Sales revenue (including charge-through sales1) FY222 FY21 2yr 18% % 16% $m $m % Food 9,522.3 9,389.7 1.4 4.6 27% 55% 57% Hardware 3,119.5 2,588.2 20.5 50.3 27% Liquor 4,763.9 4,383.2 8.7 29.5 Total sales revenue (including charge-through sales) 17,405.7 16,361.1 6.4 17.2
Slide 10: Food – Sales
FOOD – SALES Healthy growth on extraordinary level of sales in FY21 FY22 FY21 Total Food sales (including charge through) increased 1.4% to $9.5bn % 2yr % $m $m 1 Normalised total Food sales +2.0% (2yr +13.4%) 1 – Supermarkets +1.9% (2yr +13.8%) normalised Revenue (including charge-through) 1 – Co
Slide 11: Food – EBIT
FOOD – EBIT Total Food EBIT increased $7.9m or 4.1% to $200.3m reflecting the strong trading FY22 FY21 performance and improved quality of earnings $m $m % EBIT improved by ~$29m or ~17% after adjusting for: ~$4m adverse impact from 7-Eleven in FY21 Total revenue1 (including charge-through) 9,522.
Slide 12: Food – MFuture Update
FOOD – MFUTURE UPDATE Network of the future Supply chain • Network refresh with national brand standards and • Logistics operations more consistent offer by format • Outstanding resilience and flexibility • 211 stores compliant with standards with a further demonstrated during significant supply cha
Slide 13: New Distribution Centre at Truganina, VIC
NEW Construction to commence on a ~115k m2 ‘best in class’ DISTRIBUTION wholesale DC in Truganina, Vic in 1HFY23 (replaces current ~90k m2 Laverton, Vic DC) CENTRE AT DC to house both Food and Liquor Decision to proceed supported by success of new DC at Gepps TRUGANINA, VIC Cross in SA, strong sales
Slide 14: Hardware – Sales
HARDWARE – SALES Total sales (including charge-through) increased 20.5% to $3.1bn (2yr +50.3%). On a FY22 FY21 % 2yr % normalised1 basis the increase was 18.3% $m $m • Combined IHG and Total Tools retail network sales ~$4.4bn2, +9% LfL (2yr +27.8%) • Significant growth in both IHG and Total Tools To
Slide 15: Hardware – Sales (cont.)
HARDWARE – SALES (CONT.) Total Tools sales1 increased 160.4% to $367m reflecting increased Trade activity and FY22 FY21 % 2yr % the impact of additional majority-owned joint venture stores $m $m • Total retail network sales increased to $972m (FY21: $868m) Total revenue as per Statutory Accounts 2,0
Slide 16: Hardware – EBIT
HARDWARE – EBIT Substantial increase in EBIT, up $55.3m or 40.7% to $191.3m FY22 FY21 % IHG EBIT increased $15.8m or 14.1% to $127.8m $m $m • Sales growth Total revenue1 (including charge-through) 3,119.5 2,588.2 20.5 • Increased contribution from IHG company-owned / joint venture stores • Acquisiti
Slide 17: Hardware – MFuture Update
HARDWARE – MFUTURE UPDATE IHG TOTAL TOOLS GROW DIY BUILD TRADE • Expanding Sapphire Store upgrades • Trade Centres – servicing the builder • Grow store network • Committed to upgrade of 300 stores by 2025 – • Completed 37 Sapphire Trade Centres – • 11 new stores opened, network now 100 stores 161 no
Slide 18: Liquor – Sales
LIQUOR – SALES Total sales (including charge-through) increased 8.7% to $4.8bn (2yr +29.5%). On a FY22 FY21 normalised1 basis the increase was 6.6% (2 year: +27.1%) % 2yr % $m $m Demand in the retail network remained strong with growth across IBA and contract customers Total revenue as per Statutory
Slide 19: Liquor – EBIT
LIQUOR – EBIT EBIT increased $8.7m or 9.8% to $97.4m FY22 FY21 % $m $m • Contribution from sales growth, partly offset by • Increased costs related to: Total revenue1 (including charge-through) 4,763.9 4,383.2 8.7 – COVIDSafe practices EBIT 97.4 88.7 9.8 – DC absenteeism and tight casual labour mark
Slide 20: Liquor – MFuture Update
LIQUOR – MFUTURE UPDATE Drive brand awareness Owned & Exclusive brands Supply chain flexibility and appeal (O&E) and efficiency • Continued to enhance the network through • Portfolio planning complete with focus on • Partnering with key suppliers to realise supply investment in stores and cool room
Slide 21: Digital Update
DIGITAL UPDATE Food Hardware Liquor • Continued rollout of digital eCommerce initiatives for • Consumers continue to build their connection • Whole of IBA network eCommerce solution to drive IGA retailers with IGA Shop Online through our omni channel solutions sales for retailers and ALM • New platf
Slide 22: Project Horizon Update
PROJECT HORIZON UPDATE Stage 1 Progress • $47m capex in FY22 Key Deliverables Stage 1 • $27m-$32m expected in each half over remainder of Stage 1 (to end CY23) • Group technical infrastructure • Delivered first milestone with Core Finance successfully going live in Nov-21 • $22m (after tax) reported
Slide 23: Group Financials
GROUP FINANCIALS Alistair Bell Group Chief Financial Officer 23
Slide 24: Financial Highlights
FINANCIAL HIGHLIGHTS Strong underlying earnings and cashflow Earnings momentum, Balance sheet strength with financing flexibility financial strength and Effective working capital management significant increase in shareholder returns Disciplined and effective capital allocation • Successful strategi
Slide 25: Profit & Loss
PROFIT & LOSS FY22 FY21 % $m $m Sales revenue including charge-through sales 17,405.7 16,361.1 6.4 Charge-through sales (2,240.9) (2,045.8) 9.5 Sales revenue per statutory accounts 15,164.8 14,315.3 5.9 1 EBITDA 648.2 565.1 14.7 Depreciation and amortisation (175.9) (163.7) 7.5 EBIT 472.3 401.4 17.7
Slide 26: Cashflows
CASHFLOWS FY22 FY21 $m $m Operating cash flows 432.3 475.5 Investing cashflows, net1 (223.8) (216.0) Capital expenditure (including Project Horizon and store upgrades) (121.7) (85.6) 1 Acquisitions of businesses (114.8) (143.1) Proceeds from sale of businesses and net loan movements 12.7 12.7 Paymen
Slide 27: Balance Sheet
BALANCE SHEET 30 April 2022 30 April 2021 $m $m Capital Expenditure ($m) Trade and other receivables and prepayments 1,761.2 1,607.8 300 Inventories 1,125.2 1,008.0 200 Trade payables and provisions (2,478.2) (2,234.4) 100 Net working capital 408.2 381.4 SIB: ~$57m Growth: ~$65m Intangible assets 79
Slide 28: Debt Management
DEBT MANAGEMENT FY22 FY21 Debt facility maturity profile 2 $m $m Net debt 400 300 Gross debt (293.7) - 200 Cash and cash equivalents 104.7 124.6 $m 100 Net (debt)/cash (189.0) 124.6 0 FY23 FY24 FY25 FY26 FY27 FY29 Working capital Bi-lateral facility Syndicated facility Debt metrics and ratios Weight
Slide 29: Shareholder Distributions
SHAREHOLDER DISTRIBUTIONS Distributions Target dividend payout ratio ~70% of underlying profit after tax 450 30 DPS $m 400 FY22 final dividend: 350 200 • 11.0 cents per share, fully franked (FY21: 9.5c) 300 20 • Ex-dividend date: 12 July 2022 • Record date: 13 July 2022 250 150 • Payment date: 10 Au
Slide 30: Group Outlook
GROUP OUTLOOK Doug Jones Group Chief Executive Officer 30
Slide 31: Outlook
OUTLOOK Group1 Sales update – first seven weeks of FY23 Strong sales momentum has continued in all pillars in the first seven Group sales increased 8.6% with growth in all pillars weeks of FY23 supported by the increased preference for local neighbourhood shopping and the improved competitiveness of
Slide 32: Appendices
APPENDICES 01 02 03 Financial Sales Bannered history reconciliation store numbers 32
Slide 33: Financial History
1. FINANCIAL HISTORY FY22 FY21 FY20 FY191 FY181 Financial Performance Sales revenue ($m) 15,164.8 14,315.3 13,025.4 12,660.3 12,442.2 EBIT ($m) 472.3 401.4 334.9 330.0 334.6 Net finance costs ($m) (48.5) (42.6) (52.0) (28.9) (26.4) Underlying profit after tax ($m) 299.6 252.7 198.8 210.3 216.9 Repor
Slide 34: Sales Revenue Reconciliation
2. SALES REVENUE RECONCILIATION Sales ($m) YoY sales growth % 2yr sales growth % FY22 FY22 53rd Excluding Excluding (excluding Actual Normalised2 Actual Normalised2 Actual Week1 53rd week1 53rd week1 53rd week) Supermarkets 8,585.1 (162.0) 8,423.1 3.9% 1.9% 1.9% 14.3% 12.1% 13.8% Convenience 937.2 (
Slide 35: Bannered Store Numbers
3. BANNERED STORE NUMBERS April April 2022 2021 Pillar Supermarkets 1,623 1,641 Convenience 16 16 Liquor 3,048 2,838 Hardware 736 731 Total 5,423 5,226 Supermarkets Convenience Liquor Hardware Total Store movement Number of stores at April 2021 1,627 16 2,838 731 5,212 Stores opened / joined banner
Slide 36: Bannered Store Numbers
3. BANNERED STORE NUMBERS April April 2022 2021 Supermarkets Supa Valu IGA 2 2 Core IGA 1,096 1,084 Small Format IGA 243 254 Total IGA bannered stores 1,341 1,340 Friendly Grocer / Eziway 282 287 Total Supermarkets 1,623 1,627 Liquor Cellarbrations 538 548 Bottle-O & Bottle-O Neighbourhood 259 250 I
Slide 37: Disclaimer
DISCLAIMER This presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as at the date of this presentation. The information in this presentation is of general background and does not purport to be complete. It should be read in conju
Slide 38: Championing Successful Independents
CHAMPIONING SUCCESSFUL INDEPENDENTS