Metcash Limited · ASX:MTS

Metcash — Investor Day (September 2015)

87 slides from Metcash's investor day presentation, Sep 29, 2015

  1. Slide 1: Metcash Investor Day ASX Announcement

    Metcash Limited ABN 32 112 073 480 50 Waterloo Road Macquarie Park For personal use only NSW 2113 Australia 29 September 2015 ASX Announcement METCASH INVESTOR DAY Metcash Limited (or the “Group”) will today hold an Investor Day focussed on updating investors as to progress made implementing the Gro

  2. Slide 2: Metcash 2015 Investor Day

    For personal use only METCASH 2015 Investor Day

  3. Slide 3: Introduction

    For personal use only INTRODUCTION IAN MORRICE GROUP CHIEF EXECUTIVE OFFICER Page 2

  4. Slide 4: Agenda

    AGENDA For personal use only 10.00 am Introduction Ian Morrice 10.15 am Food and Grocery – Marketing Insights Madeleine Fitzpatrick 10.40 am Food and Grocery – Diamond Store Accelerator Program Roy Leisk 11.10 am Food and Grocery – Compelling Fresh Peter Pokorny 11.20 am Food and Grocery – Supportin

  5. Slide 5: Our Purpose

    OUR PURPOSE SUCCESSFUL INDEPENDENTS For personal use only OUR MODEL OUR VALUES OUR MARKETS INTEGRITY IS THE FOUNDATION OF OUR VALUES:  Supporting our customers and suppliers FOOD &  Our people are empowered and accountable GROCERY  Adding value in our community DELIVERING OUR VISION HARDWARE VALU

  6. Slide 6: Metcash's Family of Independents

    SUPERMARKETS For personal use only CONVENIENCE METCASH’S LIQUOR | RETAIL FAMILY OF INDEPENDENTS LIQUOR | WHOLESALE HARDWARE Page 5

  7. Slide 7: Metcash's National Presence

    METCASH’S NATIONAL PRESENCE For personal use only NORTHERN RETAIL WHOLESALE TERRITORY NETWORK1 CUSTOMERS2 QUEENSLAND WESTERN BRISBANE SUPERMARKETS 1,455 ~1,000 AUSTRALIA SOUTH AUSTRALIA CONVENIENCE 18 ~190,000 PERTH NEW SOUTH WALES SYDNEY HARDWARE 400 ~400 ADELAIDE VICTORIA MELBOURNE LIQUOR 7,7543 ~

  8. Slide 8: Focus of Our Strategy

    FOCUS OF OUR STRATEGY For personal use only SHOPPER-FOCUSED RETAIL BANNERS SUPERMARKETS CONVENIENCE LIQUOR HARDWARE Diamond Campbells Grow IBA retail banners Grow the Mitre 10 network  Competitive Pricing  Shift to food service  Compelling Fresh  House brands Like for like growth Like for like g

  9. Slide 9: IGA Strengths, Shopper Insights, IGA Opportunities

    For personal use only IGA STRENGTHS, SHOPPER INSIGHTS IGA OPPORTUNITIES MADELEINE FITZPATRICK GM MARKETING Page 8

  10. Slide 10: We're Independent: Our Biggest Strengths

    For personal use only  1,455 stores owned independently  Catering to local markets  Offering localised range WE’RE OUR BIGGEST INDEPENDENT  Integral to local communities STRENGTHS  Research shows willingness of consumers to support independent retailers  Social listening surveys show dispropor

  11. Slide 11: Australians Are Shopping More Frequently

    AUSTRALIANS ARE SHOPPING MORE For personal use only FREQUENTLY, BASKET SIZES ARE SHRINKING, BUT THEY’RE SPENDING MORE CAPTURING CUSTOMERS’ HEARTS LOOKING FOR INSPIRATION, FRESH & SOLUTIONS (READY MEALS, ONLINE SHOPPING & DELIVERY/CLICK N COLLECT) AND MINDS MEANS UNDERSTANDING IGA OVER-INDEXED TODAY’

  12. Slide 12: Listening to What Our Customers Say

    For personal use only AND WE’VE LISTENED TO WHAT OUR OWN CUSTOMERS SAY ABOUT US + 100,000 OF THEM Page 11

  13. Slide 13: Customers Love IGA But...

    CUSTOMERS For personal use only LOVE IGA BUT… I LOVE MY LOCAL IGA BUT RESPONSE Because the staff are so friendly Their prices need to be more competitive PRICE MATCH Competitive on price Because it’s easy for me to get in and The quality and range of their fresh food COMPELLING FRESH out quickly can

  14. Slide 14: Competitive Pricing

    COMPETITIVE For personal use only ACHIEVE SUSTAINABLE COMPETIVENESS PRICING IN SHELF PRICE AND COMMUNICATE THIS CLEARLY TO THE SHOPPER  Price Match launched September 2014  ~900 stores on competitive price program  Basket of proprietary and private label brands  Prices matched weekly to competit

  15. Slide 15: Launch of Price Match

    LAUNCH OF For personal use only PRICE MATCH TELEVISION OUTDOOR HOME PAGE SHOPPER SOCIAL PR TAKEOVERS BAGS MEDIA Page 14

  16. Slide 16: Outcome of Campaign to Date

    OUTCOME OF CAMPAIGN TO DATE For personal use only SENTIMENT: SURVEY RESULTS: PRICE MATCH RESULTS:  In market response strong, key  Statistical significant  Price Match program generated a measures tracking positively improvement in EDP perception 340 basis point improvement in amongst shoppers ac

  17. Slide 17: What Our Brand Stands For

    For personal use only WHAT OUR BRAND  Personalities  Cultures STANDS FOR WILL  Experiences  Stories  Passions  Expertise DIFFERENTIATE US FROM THE REST Page 16

  18. Slide 18: Differentiate On Our Own Terms

    IT’S WITH THIS MINDSET THAT WE CAN DIFFERENTIATE ON OUR OWN TERMS For personal use only Three core brand ingredients that embody the best of the network Individual Service Heart of the Character with Soul Community Page 17

  19. Slide 19: Metcash Has the Fundamentals for Success

    METCASH HAS THE For personal use only FUNDAMENTALS FOR SUCCESS SHOPPER INSIGHTS IGA  Today’s shopper wants convenient  The 1,455 most conveniently shopping located supermarkets in Australia  The “Buy As You Need” shopping  IGAs offer is more tailored to mission is already > 50% of sales meet thi

  20. Slide 20: A Diverse Network of Proud Independents

    For personal use only We’re a diverse network of proud independents intrinsically part of local communities IGA all over Australia Page 19

  21. Slide 21: Diamond Store Accelerator Program

    For personal use only DIAMOND STORE ACCELERATOR PROGRAM ROY LEISK NATIONAL OPERATIONS MANAGER Page 20

  22. Slide 22: Shopper Insights

    SHOPPER INSIGHTS For personal use only CONSUMER PRICE FRESH RANGE CUSTOMER SERVICE STORE PRIORITIES* ENVIRONMENT METCASH RESPONSE COMPETITIVE COMPELLING SHOPPER RETAIL NETWORK PRICING FRESH LED WAY EXCELLENCE INVESTMENT DIAMOND LEVERS ADDRESS THESE PRIORITIES * Source: IGA customer satisfaction surv

  23. Slide 23: What DSA Delivers to Retailers

    WHAT DSA DELIVERS TO RETAILERS For personal use only Increased Fresh Core range and Upskilled Improved value space in store product differentiation retail team proposition through Price Match and Private Label Page 22

  24. Slide 24: How We Deliver DSA

    HOW WE DELIVER DSA For personal use only Build excellent operations team A true Expert in Visiting store Focused on KPIs on retailer partner in ‘whole-of-store’ more often ‘value-add’ feedback the business 30 NEW EXPERTISE-BASED & VALUE-ADD SYSTEM & TOOLS ACCELERATING THE MOVE TO DIAMOND STATUS AND

  25. Slide 25: Impact on Shopper Perception

    GOOD EVERYDAY DELI PRICES GOOD RANGE SPECIALS MEAT STAFF WERE RANGE FRIENDLY For personal use only BAKERY STAFF WERE RANGE HELPFUL PRODUCE CHECKOUT RANGE WAS EFFICIENT POSITIVE DELI QUALITY STORE WAS BRIGHT/ WELCOMING IMPACT ON Pre DSA MEAT QUALITY STORE WAS CLEAN SHOPPER Post DSA BAKERY STORE EASY

  26. Slide 26: DSA Results Remain Positive

    DSA RESULTS For personal use only REMAIN * POSITIVE 20% 15% 16% Av. basket Av. basket Retail Fresh Total Retail Total Warehouse size up numbers up sales up sales up sales up POSITIVE RESULTS FROM DSA SUSTAINED INTO FY16 Page 25 * Represents LFL sales growth achieved in DSA since launch to August 201

  27. Slide 27: Plans Include a Further ~100 Stores

    PLANS INCLUDE A For personal use only FURTHER ~100 STORES THIS FINANCIAL YEAR FY15 FY16 FY17 KEY AREAS OF FOCUS 52 ~100 Stores Stores ongoing Training Academy Funding models to accelerate Working with MSOs to upgrade retailer take up larger stores Page 26

  28. Slide 28: Compelling Fresh

    For personal use only COMPELLING FRESH PETER POKORNY GM FRESH Page 27

  29. Slide 29: Why Is Compelling Fresh Important?

    WHY IS COMPELLING FRESH IMPORTANT ? For personal use only FRESH IS A ~$38b MARKET 1 STRONG FRESH OFFER DRIVES SHOPPERS, SALES AND PROFIT PRODUCE is a major driver in deciding FRESH NOW ~48% 2 where to shop OF ANNUAL Fresh produce GROCERY SPEND growing at 7% 3 Metcash is significantly under-indexed i

  30. Slide 30: Metcash Focus on Fresh

    METCASH FOCUS ON FRESH For personal use only Area of focus Progress Capability • Added strong retail experience to Fresh team • Enhanced product specifications across all produce Quality categories • Collaborative supplier planning with top 20 Fresh Suppliers suppliers • Expanded cross-dock and DC c

  31. Slide 31: Delivering Compelling Basic Lines

    DELIVERING COMPELLING BASIC LINES For personal use only Competitors: Competitors: Competitors: 6 pack avocado Poultry- Whole Birds Berry Category (Promo $5.99/ Off $6.99) $3.99 kg EDLP Fastest growing produce category Hi/Lo pricing IGA line: IGA line: IGA line: 5 pack avocado Poultry Whole Birds Ber

  32. Slide 32: Specialty Cheese

    For personal use only Range expansion and merchandising guidelines for field support team Differentiating the Fresh experience: Store support program – from training SPECIALTY and installation manuals to customer information booklets and tasting events CHEESE Building momentum: 50 cheese shops activ

  33. Slide 33: Value Add Fresh

    VALUE ADD FRESH: For personal use only A solution to support our network Ready prepared range 95 products developed 15 pilot stores trialled in December 2014 119 Your Kitchen concepts installed since December 2014 Step change in Fresh End-to-end solution Targeting 200 stores in FY16 Page 32

  34. Slide 34: FY2016 Key Fresh Focus

    FY2016 For personal use only KEY FRESH FOCUS Scale up Accelerate take Diamond Store Fresh across up of new Accelerator the network Fresh concepts Program - a key driver in lifting Fresh sales Page 33

  35. Slide 35: Supporting Successful Independents

    For personal use only SUPPORTING SUCCESSFUL INDEPENDENTS RUSSELL PARKER EXECUTIVE GM RETAIL NETWORK Page 34

  36. Slide 36: Supporting Successful Independents: Training Academy, In-Store Analytics

    SUPPORTING SUCCESSFUL INDEPENDENTS For personal use only TRAINING IN-STORE ACADEMY ANALYTICS Page 35

  37. Slide 37: Training is a Crucial Part of a Retailer's Business

    Offer team member career development and reduce turnover For personal use only Consistently and effectively induct all new employees SUPPORTING Improve Retail Excellence and in-store compliance SUCCESSFUL Improve customer INDEPENDENTS engagement Build capability to impact WE UNDERSTAND TRAINING comm

  38. Slide 38: Designed as a One-Stop-Shop

    DESIGNED AS A For personal use only ONE-STOP-SHOP Metcash designed a range of learning opportunities to develop the skills and expertise needed for the long term success of the network FACE TO FACE & ACCREDITATION / ONLINE LIBRARY CAREER PATHWAY ONLINE MODULES Designed to build Resources, templates

  39. Slide 39: Training Academy

    For personal use only Affordable, accessible, consistent, relevant & specific to IGA standards, TRAINING operations & branding ACADEMY A valuable tool for retailers to achieve retail excellence RETAILER A valuable tool for the network to BENEFITS adopt to deliver consistent standards Rolled out to ~

  40. Slide 40: Analytics – Leveraging Scan Data

    ANALYTICS – For personal use only LEVERAGING SCAN DATA Product recommendations Gain quicker & deeper Comparative store & range optimisation, insights on key performance promotion opportunities performance metrics Facilitates deeper Foot traffic, basket, product Measure & optimise engagement with ret

  41. Slide 41: Shopper Led Way

    For personal use only SHOPPER LED WAY ANDREW CLARK GM MERCHANDISE - FOOD Page 40

  42. Slide 42: Systematic Approach to Manage and Grow Categories

    WE HAVE DEVELOPED A SYSTEMATIC APPROACH TO CONTINUOUSLY For personal use only MANAGE & GROW OUR CATEGORIES WE CALL THIS SHOPPER LED WAY Page 41

  43. Slide 43: Shopper Led Way Is Improving Retail Value

    SHOPPER LED WAY IS IMPROVING RETAIL VALUE For personal use only SHOPPER 6 LED WAY Review Results & Amend INPUT OUTPUT 5 Implement Strategy &  Global trends  Category growth plan Tactics  National trends  Category role  Aztec data  Space allocation Define the  Shopper tracker data  Planograms

  44. Slide 44: Coffee Category Example

    TO GROW THE CATEGORY For personal use only PENETRATION FREQUENCY VALUE COFFEE AWOP People already drink a lot of coffee; cup consumption is flat. It’s hard to get volume growth. INSIGHT Coffee types – everyday soluble, specialty, roast & ground and capsules. Shoppers switch between them depending on

  45. Slide 45: Coffee Sales Up 11%

    For personal use only MORE BIGGER HIGHER MORE BASKETS BASKETS SALES PROFIT POSITIVE SHOPPER, 2% 9% 11% more baskets had bigger coffee sales increase in COFFEE RETAILER & coffee in them basket value growth vs retailer GP dollars last year vs last year SUPPLIER ENGAGEMENT COFFEE SALES UP 11% Page 44 R

  46. Slide 46: Private Label Strategy

    For personal use only PRIVATE LABEL STRATEGY Page 45

  47. Slide 47: Private Label Journey: Historic Position

    LAST 12 MONTHS For personal use only PRIVATE LABEL JOURNEY OUR HISTORIC POSITION Over priced Over ranged Branding and Lack of consistency Lack of consistency packaging out of touch at wholesale at retail incl quality, service incl store pricing, RESULT levels, packaging ranging, layout Confused valu

  48. Slide 48: Private Label Opportunity

    PRIVATE LABEL For personal use only OPPORTUNITY APPROXIMATE PRIVATE LABEL SHARE OF TOTAL SALES % Metcash ~7% Australia* ~21% USA* ~18% UK* ~41% Discounters** ~75% *Neilson Global Private Label Report – 2014 Page 47 ** Publicly available information

  49. Slide 49: Private Label Tiers and Strategy

    PRIVATE LABEL For personal use only TIERS AND STRATEGY MID TIER  Deliver wholesale income & retail GP  Develop customer loyalty through exclusivity  Provides a point of difference  Relevant to most categories VALUE TIER (BLACK & GOLD)  Drive volume from value focused customer  Improves price p

  50. Slide 50: Black & Gold Progress

    BLACK & GOLD For personal use only PROGRESS PRICING RANGE BRANDING & WHOLESALE RETAIL PACKAGING CONSISTENCY CONSISTENCY Black & Gold integral Identified and Developed new brand Adjusted specifications ~1,100 retailers on price component to Price implemented a core and packaging on B&G products, comp

  51. Slide 51: Food & Grocery

    For personal use only FOOD & GROCERY STEVEN CAIN CEO SUPERMARKETS Page 50

  52. Slide 52: Diamond Transformation

    DIAMOND TRANSFORMATION For personal use only FY16: FY17: Significant Progress Next Steps New Compelling Ranges New Compelling Ranges (SLW & Fresh) (SLW & Fresh) Australia’s Largest  Black & Gold   Mid tier own brand Wholesaler  Example: coffee capsules   Accelerate Shopper Led Way – key brands

  53. Slide 53: Convenience

    For personal use only CONVENIENCE PETER STRUCK CEO CONVENIENCE Page 52

  54. Slide 54: The Market: Petrol & Convenience Distribution

    THE For personal use only MARKET PETROL & CONVENIENCE DISTRIBUTION  Petrol & Convenience market is ~ $8.0 billion in sales and growing $8B $5B  Growth driven by changing consumer habits in convenience • Food & beverage growth is driven by breakfast, lunch and snacking missions MARKET  Fragmented

  55. Slide 55: The Market: Wholesale Distribution

    THE For personal use only MARKET WHOLESALE DISTRIBUTION $5B RESELLER FOOD Food Service market Reseller Mixed Business market (i.e. pubs, clubs, institutions) MARKET BOTH SEGMENTS ARE HIGHLY FRAGMENTED Metcash Estimate Page 54

  56. Slide 56: Convenience One Solution

    CONVENIENCE For personal use only ONE SOLUTION  Relevant core range  Consolidated supply & delivery  Tailored solutions  Single source – cost efficiencies  Competitive pricing  Paperless solutions  Merchandise & ranging support  Support for perpetual stock management METCASH WILL PROVIDE A T

  57. Slide 57: CSD Key Areas of Focus

    For personal use only CSD KEY AREAS OF FOCUS FOCUS ON MEAL SOLUTIONS  Roll out Value Add Fresh offering STRATEGIC PARTNERSHIP  Smarter solutions World class logistics platform that supports  Excellent availability the Petrol & Convenience industry  Expand Fresh logistics  Innovation & capabilit

  58. Slide 58: Campbells Key Areas of Focus

    For personal use only CUSTOMER FOCUS EXPAND FOOD SERVICES  Refurbished all  B2B 18 stores capabilities  Invested in  Customer services and specific CAMPBELLS capability product range  Targeting key  Fresh meat Food Services and produce KEY AREAS segments ranges OF FOCUS RANGE FOCUS  National

  59. Slide 59: Campbells Refurbishment

    CAMPBELLS For personal use only REFURBISHMENT Page 58

  60. Slide 60: Campbells Food Services Focus

    CAMPBELLS For personal use only FOOD SERVICES FOCUS Private Label Page 59

  61. Slide 61: Campbells B2B Capability

    CAMPBELLS For personal use only B2B CAPABILITY Page 60

  62. Slide 62: ALM | Australian Liquor Marketers

    For personal use only ALM | AUSTRALIAN LIQUOR MARKETERS SCOTT MARSHALL CEO ALM Page 61

  63. Slide 63: Packaged Liquor Market Growth

    TOTAL PACKAGED RETAIL TOTAL -0.3% For personal use only MARKET GROWTH MARKET GROWTH -1.8% BEER +0.4% -2.0%  Liquor retailing has been affected by declining SPIRITS +0.4% -0.9% alcohol consumption, rising health awareness and competitive pressures WINE -1.0% -1.8%  Demand for premium products and a

  64. Slide 64: IBA Performance

    IBA PERFORMANCE TOTAL IBA v’s MARKET For personal use only SECOND LARGEST MARKET GROWTH PERFORMANCE RETAILER IN THE MARKET BEER +0.4% SPIRITS +0.4%  Like for Like growth ahead of market performance WINE -1.0%  Converting fragmented independents into strong retail brands with a focus on range and s

  65. Slide 65: IBA Key Areas of Focus

    IBA STORE GROWTH For personal use only EXTEND ALM FOOTPRINT KEY AREAS IBA CATEGORY GROWTH OF FOCUS NETWORK INVESTMENT BRAND & MARKETING FOCUS Page 64

  66. Slide 66: IBA Growth Initiatives

    INCREASE MANAGE PROFITABILITY MAIN-STREAM For personal use only DECLINE CHANGING CONSUMER NEED IBA AMPLIFY PREMIUMISATION HEARTLAND STATE SPECIFIC GROWTH PROGRAMS & ACTIVATIONS CATEGORY COOL ROOM PREMIUM RTD GROWTH MANAGEMENT DRIVE TRADE UP GROW THE WINE BASKET OPTIMISATION EDUCATION Page 65

  67. Slide 67: Private Label and Control Brands

    PRIVATE LABEL AND CONTROL BRANDS ARE A KEY ELEMENT TO IBA’S RETAIL OFFER For personal use only WITH RANGES IN BEER, WINE AND SPIRITS IBA  Each product is promoted and part of the in-store Key Retail program  Each product delivers better than GROWTH PRIVATE LABEL NOW category average retailer margi

  68. Slide 68: Network Investment

    NETWORK INVESTMENT For personal use only STORE IMPROVEMENTS  Joint investment initiatives COOLROOM REFRESH with retailers and IBA to improve the retail offer  Turning coolrooms  Investment in store into category layout, fixtures, flooring  Store changes by category planned retail space and retai

  69. Slide 69: Brand & Marketing Key Focus Areas

    BRAND & MARKETING For personal use only KEY FOCUS AREAS BRAND DIGITAL LOYALTY MARKETING TRANSFORMATION SHOP LOCAL REWARDS PROGRAM  Refreshed brands being rolled  Shift to digital platforms in  Loyalty program that offers out market across all brands shoppers instant reward  Focus to improve bran

  70. Slide 70: Our Brand Essence: Cellarbrations

    For personal use only OUR BRAND ESSENCE We share our passion and expertise with our customers, so that everyone has a great experience in SHARING Cellarbrations stores THE PASSION Page 69

  71. Slide 71: Our Brand Essence: The Bottle-O

    For personal use only OUR BRAND ESSENCE Our ability to combine professional, efficient operations with authentic, welcoming THE GENUINE service, ensuring that customers have a fun, easy experience when they shop at The Bottle-O ALTERNATIVE Page 70

  72. Slide 72: FY16 Key Focus

    FY16 For personal use only KEY FOCUS CATEGORY MANAGEMENT GROW BRAND NETWORK DEVELOPMENT Page 71

  73. Slide 73: Mitre

    For personal use only MITRE 10 MARK LAIDLAW CEO Mitre 10 Page 72

  74. Slide 74: Hardware Market Still Fragmented

    TRADE $27b * FOCUS For personal use only HARDWARE MARKET STILL FRAGMENTED RETAIL FOCUS SMALL STORE FORMAT LARGE *Metcash Estimate Page 73

  75. Slide 75: Mitre Performance

    MITRE 10 For personal use only PERFORMANCE SALES ($m) Growth of 7% (FY11-FY15 AGR) 1048 Sales exceeded 942 855 $1bn 833 798 in FY15 FY11 FY12 FY13 FY14 FY15 Page 74

  76. Slide 76: Mitre Initiatives

    MITRE 10 For personal use only INITIATIVES RETAIL & TRADE SHOPPER LED RANGE & DOMINATE DIGITAL, SUPPLY EXCELLENCE COMPETITIVE PRICING TRADE DATA, INSIGHTS CHAIN  INVEST IN  ~ 3,000 NATIONAL PRICES  BUILD SCALE  MIGHTY REWARDS  CONSOLIDATE NSW DC SAPPHIRE STORES  PRIVATE LABEL  Cluster groups

  77. Slide 77: Retail & Trade Excellence

    For personal use only RETAIL & TRADE EXCELLENCE Sapphire E-learning Store in a store Page 76

  78. Slide 78: Sapphire Stores

    For personal use only SAPPHIRE STORES OBJECTIVE ROLLOUT PLAN RESULTS TO DATE Re-invest in top 50 Completed 4 Average sales stores, based on increase of 15% Plan to complete Sapphire standard 10 this year Page 77

  79. Slide 79: Sapphire Performance

    SAPPHIRE PERFORMANCE For personal use only PERFORMANCE SCORECARD LOCALLY DIFFERENTIATE PRICE PERCEPTION (3,000 National SKU’s) _______________________________ OWNED • Competitive Top 10 - Match with Bunnings • Top 500 KVI’s - Match with Bunnings • Private Label Pricing - Buy Right, Accent • Scan Dat

  80. Slide 80: E-Learning

    E-LEARNING For personal use only Launched September 2014, fully funded by members Focus on delivering improved customer service 304 5,430 52 20 Stores Staff Modules Supplier 2015 new courses support Sapphire Registered Enrolled Available Modules 20 key performance measures Page 79

  81. Slide 81: Store in a Store

    STORE IN  Provides point of difference  Exclusive ranges For personal use only  Stihl in 80 stores A STORE   Weber specialists in 20 stores Trialling Beaumont Tiles in 2 stores Page 80

  82. Slide 82: Shopper Led Range & Competitive Pricing

    SHOPPER LED RANGE & COMPETITIVE PRICING For personal use only PRIVATE LABEL CORE RANGING Page 81

  83. Slide 83: Improved Price Perception with Buy Right and Accent

    For personal use only IMPROVED PRICE PERCEPTION ~275 WITH BUY RIGHT Buy Right SKUs AND ACCENT PRIVATE LABEL Bunnings RANGE price point PROGRAM ~280 Accent Paint SKUs Promoted on ‘The Block’ Page 82

  84. Slide 84: Core Ranging

    BEFORE AFTER For personal use only  Handtools range comprises HAND ~1,200 SKUs TOOLS  Plan to complete 20 stores this year  Target sales uplift of 10% CORE  Colour centre at front of store  Becomes ‘Helpful Hub’  Big brand such as Dulux PAINT RANGING  Paint core range comprises ~1,250 SKUs 

  85. Slide 85: Dominate Trade

    TOP REQUIREMENTS OF TRADIES DOMINATE  Rapid response from ‘order to delivery’ For personal use only  Relationship at all touch points (Reps, trade desk, driver, accounts) TRADE  Trade drive through and separate Trade desk  Timber undercover  Early opening, clean facilities, coffee Page 84

  86. Slide 86: Digital, Data, Insights

    DIGITAL, DATA, INSIGHTS For personal use only MIGHTY MITRE 10 CLICK REWARDS & COLLECT  Loyalty program 150 stores active  230,000 unique visitors a month  Segment and target offers TRADIES WEB & ONLINE SOCIAL MEDIA  Targeting the unorganised Tradie  Re launched web site  ~50 stores active  ~1

  87. Slide 87: FY16 Key Focus

    FY16 KEY FOCUS For personal use only Sapphire Grow Core Optimise JV Trade Business Stores Network Ranging Performance Strength Page 86

Metcash — Investor Day (September 2015) on 6ix