Metcash Limited · ASX:MTS

Metcash — Shareholder Meeting (August 2018)

25 slides from Metcash's shareholder meeting presentation, Aug 29, 2018

  1. Slide 1: Metcash Limited 2018 Annual General Meeting and Group Outlook

    Metcash Limited ABN 32 112 073 480 1 Thomas Holt Drive Macquarie Park NSW 2113 Australia 29 August 2018 Market Announcements Office Australian Securities Exchange Limited 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam METCASH LIMITED 2018 ANNUAL GENERAL MEETING AND GROUP OUTLOOK In accordance with

  2. Slide 2: Chairman's Address

    2018 Annual General Meeting Chairman’s Address Ladies and Gentlemen I will now provide an overview of our FY18 financial performance and capital management initiatives, as well as comment on other important matters such as our strategic direction, senior management and Board changes, and remuneratio

  3. Slide 3: Heads of Agreement with Foodland

    This week the company announced that it has signed a legally binding Heads of Agreement with Foodland Supermarket, the governing body for independent Foodland supermarket retailers in South Australia. The agreement sets out the proposed terms for Foodland retailers to commit to being supplied from t

  4. Slide 4: Senior management and Board changes

    I would now like to briefly comment on senior management and Board changes. Our company was fortunate to have a very strong internal candidate in Scott Marshall to take over as CEO Supermarkets & Convenience from Steven Cain following Steven’s resignation in March this year. Scott was the incumbent

  5. Slide 5: Looking forward

    Looking forward, we remain focused on supporting our independent retail networks to be strong and grow in highly competitive and challenging markets. Many of our retailers already have some of the best stores in the world. I believe the quality, commitment and passion of our leadership team and Boar

  6. Slide 6: Welcome to Metcash Limited 2018 Annual General Meeting

    Welcome to Metcash Limited 2018 Annual General Meeting

  7. Slide 7: Board of Directors

    Board of Directors Rob Murray Tonianne Dwyer Chairman Chair – Audit, Risk & Compliance Committee Jeff Adams Murray Jordan Group Chief Executive Officer Fiona Balfour Helen Nash Chair – People & Culture Committee Anne Brennan Julie Hutton Company Secretary 2

  8. Slide 8: Metcash Management

    Metcash Management Brad Soller Penny Coates Group CFO Chief People & Culture Officer Scott Marshall Linda Venables CEO, Supermarkets & Chief Logistics Officer – Convenience Food & Liquor Rod Pritchard Edwin Gear Acting CEO, Australian Liquor Chief Information Officer Marketers Mark Laidlaw CEO, Inde

  9. Slide 9: Meeting Agenda

    Meeting Agenda 1 Receive and consider financial report and reports of the directors and auditor for the year ended 30 April 2018  Chairman’s Address  CEO review of financial performance 2(a) Resolution to elect Ms Anne Brennan as a director 2(b) Resolution to elect Mr Murray Jordan as a director 3

  10. Slide 10: Chairman's Address

    Chairman’s Address  Comments on FY18 performance  Advice from Drakes Supermarkets in South Australia  Strategic direction  Capital management  Senior management and Board changes  Remuneration 5

  11. Slide 11: Review of FY18 financial performance

    Review of FY18 financial performance JEFF ADAMS GROUP CHIEF EXECUTIVE OFFICER

  12. Slide 12: Our purpose & vision

    Maicash OUR PURPOSE & VISION CHAMPIONING xv WE BELIEVE: INDEPENDENCE IS WORTH FIGHTING FOR; U E F U L IN TREATING OUR PEOPLE, RETAILERS AND SUPPLIERS INDEPENDENTS 2222: TREATED; AND IN GIVING BACK TO THE COMMUNITIES INDEPENDENCE IS WORTH FIGHTING FOR WHERE WE LIVE AND WORK. m OQ QB & B&B BEST STORE

  13. Slide 13: Group overview

    Group overview  Group sales up 4.3%1 to $14.5bn  Group EBIT 2,3 up 9.2% to $332.7m – predominantly driven by growth in Hardware earnings  Underlying profit after tax 4 up 10.7% to $215.6m  Impact of loss of sales to Drakes Supermarkets in SA recognised in asset impairment  Statutory loss after

  14. Slide 14: Profit & Loss

    Profit & Loss FY18 FY17 % $m $m Change Sales revenue 14,463.7 14,121.9 2.4% 53rd trading week - (253.5) - Total revenue (52 trading weeks) 14,463.7 13,868.4 4.3% EBITDA1 400.7 368.3 8.8% Depreciation and amortisation (68.0) (63.5) (7.1%) EBIT1 332.7 304.8 9.2% Net finance costs1 (26.4) (33.6) 21.4%

  15. Slide 15: Balance Sheet

    Balance Sheet 30 April 30 April 2018 2017 $m $m Trade receivables and prepayments 1,184.2 1,133.3 Current assets - customer charge cards agreement1 274.0 276.0 Current liabilities - customer charge cards agreement1 (274.0) (276.0) Inventories 784.4 759.2 Trade payables and provisions (1,896.2) (1,81

  16. Slide 16: Results overview by pillar

    Results overview by pillar FY18 FY17 % $m $m Change Sales revenue (%) Sales revenue Food 8,899.6 9,011.4 (1.2%) 14% Liquor 3,465.5 3,278.5 5.7% Food 62% Hardware1 2,098.6 1,578.5 33.0% 24% Liquor Total sales revenue (52 trading weeks) 14,463.7 13,868.4 4.3% 53rd trading week - 253.5 - Hardware Total

  17. Slide 17: Food – initiatives update

    Food – initiatives update Winning Range (“Mini DSA”) DSA  Warehouse: ~6,000 SKUs deleted and  Focus on delivering high quality and ~2,900 introduced competitive stores  “Winning Range” agreed with retailers and  A further 75 completed in FY18, total implementation underway now completed 325  Po

  18. Slide 18: Liquor – initiatives update

    Liquor – initiatives update Store investment Core range  Improve quality of IBA store network and  Focused on higher value premium shopper experience products (wine and spirits)  111 cool rooms upgrades in year (total  Supports differentiated, localised upgrades ~500) offer  67 stores ‘refreshe

  19. Slide 19: Hardware – initiatives and integration update

    Hardware – initiatives and integration update Store investment HTH integration Success of Sapphire program supports acceleration  Integration largely complete with synergy of rollout benefits exceeding target  Total of 30 stores upgraded  New trading terms introduced across IHG in  Average retai

  20. Slide 20: Strategic focus – next phase

    Strategic focus – next phase A five year program focused on: Growth initiatives  Investing the right way for the benefit of all our stakeholders Accelerating existing transformation initiatives  Making what works best happen faster Improving our infrastructure  Delivering the systems and processe

  21. Slide 21: Five year aspirations

    Five year aspirations Food  Grow the Grocery business  Brand clarity – network of the future  Winning Range  Acceleration of IGA DSA upgrade program  Private label (Community Co, Black & Gold)  Express format (DSA program) – 10 store trial in FY19  As strong in Fresh as we are in Grocery  A

  22. Slide 22: Five year aspirations (cont.)

    Five year aspirations (cont.) Liquor  Continue to grow the IBA retail network  Retail store trial (acquisition of 10 stores)  Increase presence in premium market – expansion of Porters Liquor  e-commerce trials  ‘Best Store in Town’  Range and stores tailored to community  IBA category and ra

  23. Slide 23: Five year aspirations (cont.)

    Five year aspirations (cont.) Hardware  ‘Best Store in Town’  Sapphire transformation (~40 stores per year)  Core Range  Store in Store – Stihl, Weber, Hardings Plumbing roll out  Dual brand strategy (Mitre 10 & HTH)  Digital – Click & Collect now across all brands (growing strongly)  Leverag

  24. Slide 24: Group outlook

    Group outlook  Food  The improvement in FY19 sales highlighted at our full year results has continued through the period to date, with a slow down in the rate of decline of non tobacco sales  Highly competitive market conditions are however expected to continue through the remainder of FY19  The

  25. Slide 25: Metcash Limited 2018 Annual General Meeting

    Metcash Limited 2018 Annual General Meeting

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