Metcash Limited · ASX:MTS
Metcash — Investor Presentation (March 2010)
34 slides from Metcash's investor presentation, Mar 19, 2010
Slide 1: Cover letter to ASX Company Announcements Office
Metcash Limited ABN 32 112 073 480 50 Waterloo Road Macquarie Park NSW 2113 Australia PO Box 6226 Silverwater Business Centre NSW 1811 Australia Ph: 61 2 9751 8200 Fax: 61 2 9889 1557 19 March 2010 The Manager, Companies Australian Stock Exchange Company Announcements Office Level 4 20 Bridge Street
Slide 2: Insights to Metcash
2010 Insights to Metcash 19 March 2010 Andrew Reitzer CEO
Slide 3: Agenda
2010 AGENDA Introduction David Johnston, Chief Human Resources Officer Silvestro Morabito, CEO IGA Distribution Harry Rumpler, CEO IGA Fresh Fergus Collins, CEO Australian Liquor Marketers Peter Dubbelman, CEO Campbells Wholesale Andrew Reitzer, CEO Metcash 1
Slide 4: Human Resources
2010 HUMAN RESOURCES David Johnston Chief Human Resources Officer 2
Slide 5: Human Resources
Human Resources 2010 Talent Pipeline Talent Development Performance Management 3
Slide 6: Talent Pipeline – All Metcash
Talent Pipeline – All Metcash 2010 Performance Total Potential Readiness As & Bs Senior 11 Executives Business Unit 31 30 15 Leaders Senior Managers 224 197 76 Supervisors & Managers 628 Employees 841 4
Slide 7: Talent Development
LEADERSHIP LEVEL: Business Unit Leader & Talent Grid Senior Manager Leadership (“HOW”) Leadership Competency Assessment Ratings GROUP: All METCASH Strong (3.60 — 5.00) Effective (2.60 - 359) Improvement (0.00 - 259) Not Meeting Meeting Exceeding (182) (485) 3) Results (“WHAT”) Annual Performance Rev
Slide 8: Talent Development
Talent Development Performance & Potential sea ea eee eae senior Managers GROUP: All METCASH High Potentials High Potentials No. = 23 Average Potential Assessment Low “C” Players “B” Players “A” Players Performance Results
Slide 9: Performance Management
Performance Management 2010 7
Slide 10: IGA Distribution
2010 IGA DISTRIBUTION Silvestro Morabito CEO 8
Slide 11: IGA>D - Strength in Depth
IGA>D - Strength in Depth 2010 Silvestro Morabito – Background Thirty three years in retail - domestic and international experience General Manager, IGA>D Western Australia - 4.5 years (post FAL acquisition) Dairy Farmers International - 13 years Safeway Victoria - 15 years CEO Cold Storag
Slide 12: Initiatives in a Changing Market
Initiatives in a Changing Market 2010 IGA>D continues to experience strong support from IGA independent retailers The market place has seen evolution of value focused customer IGA independent retailers well positioned to maximise this opportunity Launch of the IGA “Locked Down Low Prices” pr
Slide 13: IGA Model’s Strength - Differentiation
IGA Model’s Strength - Differentiation 2010 The IGA model is unique in the Australian market place: Model strength achieved via differentiated offer customised to local needs Motto - “Behave like a chain and act locally” Marketing strategy - 80% standardised & 20% local area - ensures alignmen
Slide 14: IGA Fresh
2010 IGA FRESH Harry Rumpler CEO 12
Slide 15: Overview
Overview 2010 Strategy Provide independent retailers with complete, consistent and quality Fresh food offer to meet customer needs Rationalise supplier base in all areas Categories - produce (fruit and vegetables), meat, bakery and delicatessen; with an initial focus on fresh produce Sales o
Slide 16: Operational Snapshot
Operational Snapshot 2010 Produce Meat 10 facilities with new Cairns facility – Oct 10 completion 2 facilities with plans underway to consolidate to single major production facility 24 hour delivery capability Central production approach - feature of existing WA Supermarket customers ~728
Slide 17: Key Initiatives
Key Initiatives 2010 Increase in number of deals and specials Increased focus on special buys in all areas – to take advantage of market factors Some shortages exist but generally supply partnerships ensure sufficient quality stock available Stores are beneficiaries of these promotions and d
Slide 18: Australian Liquor Marketers
2010 AUSTRALIAN LIQUOR MARKETERS Fergus Collins CEO 16
Slide 19: Still a Strong Market for Convenience
Still a Strong Market for Convenience 2010 Over 1,500 stores nationally Strong like for like sales continue in a very difficult market Convenience market still strong IBA retail sales now over $2.5b Strategic partnership with the Liquor Alliance (Thirsty Camel) working well 17
Slide 20: Destination - Increasing Relevance
Destination - Increasing Relevance 2010 2009 Destination success on price, range and service Packaged Beer Wine Spirits RTD / Cider Dec 2015 41%, $5.4 billion 23%, $3.0 billion 18%, $2.4 billion 18%, $2.5 billion 100% Segment Value Share of Category 80% $11b Spent in AUS Convenience 60% $2.1b 40% Sp
Slide 21: What the Future Holds
What the Future Holds 2010 2015 Convenience still holds 74% share of market 100% Packaged Beer Wine Spirits RTD / Cider 42%, $7 billion 20%, $3.4 billion Segment Value Share of Category 18%, $3 billion 20%, $3.4 billion 80% $12.5b Spent in AUS 60% Convenience 38%, $1.3 billion $4.3b 40% Spent in AUS
Slide 22: Category Indexes 2005 - 2009
Category Indexes 2005 - 2009 2010 Source : Nielsen Analysis March 2010 Page 20 20
Slide 23: Strategies
Strategies 2010 On-Premise Market Business slow down in 1H10 New strategy to tackle business slow down commencing post Easter Parallel beer strategy started and running well with strong take up across all channels New range of house brand spirits finalised and will hit shops in next 6 to 8 w
Slide 24: Campbells Wholesale
2010 CAMPBELLS WHOLESALE Peter Dubbelman CEO 22
Slide 25: Our Markets
Our Markets 2010 Market Attributes Convenience Independent Convenience Decline = Maintain Hospitality Foodservice market / free trade Fragmented = Grow Foodservice Market Deliveries fragmented market = Hospitality On-Premise Liquor Invest & grow Convenience Regional Petrol & Convenience Consolidatio
Slide 26: Convenience: State of the Industry
Convenience: State of the Industry 2010 Traditional Organised Cash & Carry Technology driven 5.2% 6% Flight to value Strong marketing programs Closure or take away Supply chain Cash flow efficiencies No fuel deal Distribution 37% share of $1.37b market 24
Slide 27: Organised Convenience
Organised Convenience 2010 Total supply solution Integrated systems Reduce costs in supply chain DIFOT 98% + 95% 25
Slide 28: Lucky 7
Lucky 7 2010 Formatted offer for the independent C Store Promotional program 300 stores = $80m 500 stores in 2012 26
Slide 29: Hospitality - State of the Industry
Hospitality - State of the Industry 2010 Last 12 Months Future 4 major mine closures Fragmented to consolidation Cheaper dining alternatives Resource sector rebound Chains wholesaling liquor National accounts Trends to healthier On-Premise liquor offer alternatives Franchise growth
Slide 30: Hospitality - Dual Segments
Hospitality - Dual Segments 2010 Takeaways & Cafes Industrial/Mining Pubs & Clubs Quick Service Restaurants Coffee Shops Premium Restaurants Suburban Restaurants 28
Slide 31: Project Streamline
Project Streamline 2010 Reduce Fixed Costs CHILLER & FREEZER STORAGE Warehouse Rationalisation CONFEC ROOM SWEET SPOT Hybrid Formats (merge CCC & RECEIVING CWD Investment in picking technology DISPATCH RECEPTION & OFFICE SWEET SPOT Restructure costs $15.4m CHECK & Year 1 benefits expecte
Slide 32: Metcash
2010 METCASH Andrew Reitzer CEO 30
Slide 33: Resilience in a Changing Environment
Resilience in a Changing Environment 2010 Low inflation Our inflation for last 5 months < 2% Food CPI for Dec quarter 2009 was 1.4% (per ABS) Deflation again in Produce FY09 comparative period (especially 2H) benefitted from fiscal stimulus/GFC uncertainty Independent stores benefited fr
Slide 34: Mitre 10 - Update
Mitre 10 - Update 2010 Members voted 98% in favour 17th March – Court Approval received Expect to get keys 26th March First step: detailed Operational Review 32