Metcash Limited · ASX:MTS
Metcash — FY2004 Earnings Presentation
25 slides from Metcash's earnings presentation, April 2004
Slide 1: Financial Results
Financial Results 53 Weeks Ended April 2004
Slide 2: Agenda
Agenda Î Financial Highlights Î Operating Performance Î Strategic Way Forward – An Update
Slide 3: Financial Highlights
Financial Highlights 53 Weeks $7.2b $183.8m $155.6m From 1.88 % $101.7m 7.1% 20% 23.5% 2.17% 25% Sales Growth Ebita P.B.T. P.B.T. P.A.T. % to Sales Note: Comparing 52 to 52 weeks Sales Growth was 5.4 % and P.A.T. growth was 21.6 %
Slide 4: Financial Highlights
Financial Highlights 53 Weeks From From $ 148 m 21.1% 19.3 c 11 cps $171m 22.7 % 28 % 19% Cash flow Return Dividend EPS before Goodwill from Trading on Equity
Slide 5: EBITA
EBITA $millions 183.8 180 152.7 150 117.4 120 91.6 90 69.7 60 30 0 2000 2001 2002 2003 2004
Slide 6: EBITA Margin
EBITA MARGIN 3.00% 2.56% 2.50% 2.28% 2.04% 2.00% 1.70% 1.50% 1.35% 1.00% 0.50% 0.00% 2000 2001 2002 2003 2004
Slide 7: Cost of doing business as a % of Gross Profit
Cost of doing business as a % of Gross Profit 100.00% 95.00% 90.00% 82.40% 85.00% 80.50% 80.00% 75.20% 75.00% 71.00% 70.00% 68.00% 65.00% 60.00% FY2000 FY2001 FY2002 FY2003 FY2004
Slide 8: PBT and Goodwill amortisation as a % of Sales
PBT and Goodwill amortisation as a % of Sales 3.00% 2.46% 2.50% 2.17% 1.87% 2.00% 1.53% 1.50% 1.19% 1.00% 0.50% 0.00% FY2000 FY2001 FY2002 FY2003 FY2004
Slide 9: Full Year Earnings Per Share before Goodwill (cents)
Full Year Earnings Per Share before Goodwill (cents) 25.00 19.31 20.00 16.19 14.09 15.00 10.40 10.00 5.00 3.92 0.00 2000 2001 2002 2003 2004
Slide 10: Dividends Per Share Full Year
Dividends Per Share Full Year 12 11 10 8.6 8 Cents 6 5 4 2 1.5 0.5 0 2000 2001 2002 2003 2004
Slide 11: Operating Cashflow
Operating Cashflow $180.00 $171.30 $148.00 $160.00 $136.00 $140.00 $120.00 $100.00 $58.70 $80.00 $60.00 $40.00 $3.40 $20.00 $0.00 FY2000 FY2001 FY2002 FY2003 FY2004
Slide 12: Return on Equity
Return on Equity 25 22.7 21.1 20 16.5 15 % 9.4 10 5 0.3 0 2000 2001 2002 2003 2004
Slide 13: Targets
Targets Target Actual Sales Growth 3.0 % 7.1 % PBT and Goodwill amortisation as a percentage of sales 2.5 % 2.46 % Int-bearing Debt: Equity 50 % 15 % Return on Capital employed 35 % 41 % Return on Equity 25% 22.7 % (ROCE = EBITA/Average capital employed) (ROE = PAT / Average shareholders equity)
Slide 14: Metcash Company Structure
Metcash Company Structure Metcash Trading Limited Sales ‐ $ 7.2 b EBITA ‐ $ 183.8 m IGA Distribution Campbells Cash & Carry Australian Liquor Marketers Sales ‐ $ 3.9 b Sales ‐ $1.0 b Sales ‐ $ 2.2 b EBITA ‐ $ 131 m EBITA ‐ $ 15 m EBITA ‐ $ 34.6 m 8 Warehouses 42 Warehouses 20 Warehouses 4,000 Custom
Slide 15: Metcash Company Structure
Metcash Company Structure Metcash Trading Limited Sales Growth ‐ 7.1 % EBITA Growth ‐ 25 % IGA Distribution Campbells Cash & Carry Australian Liquor Marketers Sales Growth ‐ 6.1 % Sales Growth‐ 61 % Sales Growth ‐ 9.4 % EBITA Growth ‐ 17 % EBITA Growth ‐ 43.7 % EBITA Growth‐ 17.3 % 8 Warehouses 42 W
Slide 16: Operating Performance - IGA Distribution
Operating Performance ‐ IGA Distribution 53 Weeks ended April 2004 ¾ Sales up 6.1 % on last year, 4.2 % 52 week comparable. (In a zero inflation market). ¾ Like on like sales and excluding Franklins up about 5.5 %. ¾ EBIT $ 131 million up 17 % on last year. ¾ Successful launch of Supa IGA during the
Slide 17: National Metcash Market Share - All Customers
National Metcash Market Share – All Customers National Metcash – Excluding Franklins 13.5 13.2 13.1 13.0 13 12.5 12.5 12 11.8 11.5 11 2000 2001 2002 2003 Jan - Apr 2004
Slide 18: Metcash Supply Chain Initiatives
Metcash Supply Chain Initiatives • Queensland Megasite on track for completion in late 2004 Mega DCs • Victoria Megasite now complete • SA (Kidman Park, ALM) DC being built completion Oct 2004 • NSW still under review (after Franklins departure and Arndell Park closure) Centralised Stock Regional Me
Slide 19: Metcash Supply Chain Initiatives Status
Metcash Supply Chain Initiatives Status Voice Directed Picking • Operating in 4 IGA Distribution Centres • Operating in 3 ALM Distribution Centres • Balance completed April 2005 Put To Light • Operating in 4 CSD Distribution Centres • Roll out completed. EXE Installations • 9 IGA Distribution Centre
Slide 20: Voice Directed Picking - Return on Investment
Voice Directed Picking – Return on Investment 18 Picking Errors Per Ten Thousand Cartons Picked 900 16 Warehouse Claims (Cases) 800 14 700 12 600 10 Amount 500 Voice Pick Implementation 8 400 300 6 200 4 100 70% reduction in claims 2 Voice Pick Implementation - 7/12/03 7/26/03 10/25/03 5/24/03 5/31/
Slide 21: Put to Light - Service Levels Improvement
Put to Light – Service Levels Improvement 101.0% Service Levels for CSD 99.0% 97.0% 95.0% 93.0% 91.0% 89.0% 87.0% 6- Oct- 03 14- Jan- 04 20- Mar- 03 28- Jul- 01 28- Jun- 03 5- Nov- 01 24- May- 02 1- Sep- 02 10- Dec- 02 13- Feb- 02 Time
Slide 22: Project Collaboration
Project Collaboration 1 2 7 3 6 4 5
Slide 23: Operating Performance - ALM
Operating Performance – ALM 53 Weeks ended April 2004 ¾ Sales up 9.4 % on last year. (7.5 % 52 weeks comparable). ¾ EBIT $ 34.6 million, up 17.3 % on last year’s $29.5m. ¾ Good start made towards Banner Consolidation. Independent Brands of Australia (IBA) targeted to have over 1200 stores by Decembe
Slide 24: Operating Performance - Campbells Cash & Carry
Operating Performance – Campbells Cash & Carry 53 Weeks ended April 2004 ¾ 38 Cash and Carry Branches, 4 Convenience Store Distribution, 5 Specialist Confectionery Wholesale outlets. ¾ Total sales up 6.1% on last year. Primary categories up 16.2% , Confectionery up 66% . ¾ EBIT up 43.7 % to $15 m be
Slide 25: Metcash Strategic Plan
Metcash Strategic Plan & Utilise Technology and People Management to Further Reduce CODB. win QD shy Reduce CODB New Sources of Income &® Supply Chain Initiatives @ «9 @ Business Model Review «« Strategic and IGA Brand @ 7 @% Open 45 Supa IGAs Operational phe Focus &® Open 30 Valumarts in 3 Years ®