Metcash Limited · ASX:MTS
Metcash — Merger or Acquisition (May 2005)
12 slides from Metcash's merger presentation, May 25, 2005
Slide 1: ASX cover letter to Company Announcements Office
| TRADING UNITED AUSTRALASIA METCASH TRADING LIMITED ABN 61 000 031 569 4 NEWINGTON ROAD SILVERWATER NSW 2128 AUSTRALIA PO BOX 6226 SILVERWATER BUSINESS CENTRE 25 May 2005 NSW 1811 AUSTRALIA PHONE: 029741 3000 FAX: 02 9741 3027 WEB: www metcash.con The Manager Company Announcements Office Australian
Slide 2: Sa al —OKaa_w_«_ TT
Sa al —OKaa_w_«_ TT i NTT yt
Slide 3: Disclaimer
This presentation for Metcash Trading Limited (Metcash) is designed to provide a high level overview of the acquisition by Metcash for Foodland Associated Limited (Foodland) Australian business. No representation, warranty or undertaking, express or implied, is made as to the fairness, accuracy, cur
Slide 4: Offer for FAL
Offer for FAL Australia Consideration Woolworths Action stores « Offer is to acquire ~ West Australian Franchise and Supply division, ~ 60 Action stores excluding 19 Action stores and 3 Action development sites to be acquired by WOW ~ All other FAL Australian assets Consideration consists of: * cash
Slide 5: Value Creation
Value Creation Scale and Growth Synergies Strengthens Market Position EPS accretive for Metcash ¥ Complementary acquisition in core business “Increases business scale and expands wholesale network “Expand and strengthen Independents v¥ Improved buying power ¥ Supply chain and logistic benefits ¥ Cos
Slide 6: Revenue scale of Metcash with FAL versus WOW and CML
ff Retail M19 Action stores H Wholesale 30 5 ElIndependents”) Other 24.9 _ 254 E 213 ie < 204 17.8 =z 15.1 15 - oS N g 10 5 c a 5 4 0 T T T 1 (2) 2) wow CML New MTT MTT independent Revenue represents estimated incremental revenue earned by Independents (Source: Metcash Management estimates) WOW and
Slide 7: The New Metcash
The New Metcash SUPA IGA” 86 30 100 104 83 403 IGAM 161 255 251 105 119 891 Foodworks@) 446 40 201 - 6 693 Cerro cane 2210 Total 693 325 552 209 208 5,206 (1) Includes Foodland’s Action stores, Dewsons and Supa Valu (2) Non IGA, Foodworks aligned customers (3) Number of Foodland’s 400 Independent cu
Slide 8: Timetable
Announcement 24 May 2005 Notice of Meeting / Explanatory Memorandum to sent to July 2005 Foodland shareholders Shareholder meetings August 2005 This timetable is indicative and will be updated when the dates are confirmed
Slide 9: Creates substantial shareholder value
Creates substantial shareholder value Significantly increases business scale and expands network Strengthens ability to compete
Slide 10: Lee ae
Lee ae 2 Mi oF a, i Layee ae by OCC LLL_ — ” CL MORES ESA NINN ae : pe a
Slide 11: Appendix: Offer price for FAL Australia
Aaya ye il ' Offer price for FAL Australia Appendix ve ew 10
Slide 12: Cash alternative and share alternative
Cash alternative Share alternative A$m $ per share A$m $ per share Value of Cash paid 737 6.25 - - Value of 2.05 Metcash - - 8160 6.93 shares 737 6.25 816 6.93 Consideration which is subject to due diligence - Surplus cash 18 0.15 18 0.15 - Tax receivable to be 25 0.21 25 0.21 paid in cash® Total va