Slide 1: FY22 Half Year Results
FY22 Half Year Results 6 December 2021
Slide 2: About Metcash
About Metcash Our purpose Our vision Our values Best store in town We believe: Independence is worth fighting for; in treating Passionate about independents our people, retailers and suppliers the way we like A favourite place to work to be treated; and in giving back to the communities where we Bus
Slide 3: Group Overview and Divisional Results
GROUP OVERVIEW AND DIVISIONAL RESULTS Jeff Adams Group Chief Executive Officer FY20 Full Year Results FY22 Half Year Results 2
Slide 4: Group highlights
Group highlights Revenue and earnings growth building on a very strong prior comparative period • All pillars continue to benefit from shift in 1 Group revenue Underlying EPS consumer behaviour 1.5% to $8.2bn 15% to 14.6c per share • Strong Group leverage with revenue up 1.5% (+14.0% 2 yrs) and EBIT
Slide 5: Results overview by pillar
Results overview by pillar 1H22 1H21 Change 2yr Change Sales revenue (%) $m $m % % (including charge-through sales1) Sales revenue (including charge-through sales) 16% 18% Food 4,561.0 4,795.9 (4.9%) 4.1% Liquor 2,174.4 2,039.1 6.6% 21.9% 56% 25% 59% Hardware 1,483.7 1,258.9 17.9% 42.1% 26% Total sa
Slide 6: Food – sales
Food – sales 2yr 1H22 1H21 Change Change Total Food sales ex tobacco increased 0.9% (+16.1% v 1H20) ex 7-Eleven impact 1 2 $m $m % % Supermarkets sales declined 0.2% (+14.4% v 1H20 or +18.0% ex Drakes impact ) 1 3 Revenue (including charge-through) Total Food sales declined 4.9% or 0.2% ex 7-E
Slide 7: Food – EBIT
Food – EBIT Total Food EBIT declined $7.8m or 7.6% to $95.2m 1H22 1H21 Change EBIT improved by ~$6m or ~7% after adjusting for: $m $m % ~$4m contribution from 7-Eleven in 1H21 (1H22: nil) Total revenue1 (including charge-through) 4,561.0 4,795.9 (4.9%) ~$3m decline in contribution from joint
Slide 8: Food – MFuture update
Food – MFuture update Network of the future Supply Chain • Network refresh with national brand standards and • Logistics operations more consistent offer by format • Demonstrated significant resilience in • Commenced installation of new signage managing COVID-related challenges • 40 banner transfers
Slide 9: Liquor – sales
Liquor – sales 2yr Total sales (including charge-through) increased 6.6% to $2.2bn (+21.9% v 1H20) reflecting 1H22 1H21 Change Change $m $m % % strong demand from retail network and contract customers, and increased on-premise sales Total revenue as per Statutory Accounts 2,169.8 2,035.5 6.6% 21.8
Slide 10: Liquor – EBIT
Liquor – EBIT 1H22 1H21 Change EBIT increased $4.2m or 10.5% to $44.3m $m $m % Contribution from strong trading performance, which more than Total revenue 1 (including charge-through) 2,174.4 2,039.1 6.6% offset: EBIT 44.3 40.1 10.5% Increased weighting of lower-margin categories in sales mix;
Slide 11: Liquor – MFuture update
Liquor – MFuture update Drive brand awareness and appeal Owned & Exclusive brands (O&E) Supply chain flexibility and efficiency • Continued to enhance the network through • Gaining momentum through leveraging • Partnering with key suppliers to realise supply investment in stores and cool room upgrad
Slide 12: Hardware – sales
Hardware – sales • Total sales (including charge-through) increased 17.9% (+42.1% v 1H20) to $1.5bn reflecting 2yr continued growth in Trade sales, strong DIY sales and acquisitions 1 1H22 1H21 Change Change $m $m % % • Total IHG sales increased 7.2% (+27.4% v 1H20) Strong growth in Trade sales de
Slide 13: Hardware – EBIT
Hardware – EBIT Substantial increase in EBIT, up $34.4m or 53.3% to $98.9m, driven by: 1H22 1H21 Change IHG sales growth $m $m % Strong performance in company-owned / joint venture stores (both IHG and TT) Total revenue1 (including charge-through) 1,483.7 1,258.9 17.9% TT EBIT growth (TT 1H2
Slide 14: Hardware – MFuture update
Hardware – MFuture update IHG TOTAL TOOLS GROW DIY BUILD TRADE • Expanding Sapphire store upgrade • Open Trade Centres – Sapphire stores to • Grow store network program from 200 to 300 stores by 2025 support goal of being #1 in Trade • Net increase of 5 to bring size of network to 94 stores • 10 sto
Slide 15: Digital update
Digital update Food Liquor Hardware • Accelerated rollout of digital eCommerce • Whole of network eCommerce solution IHG • Significant increase in online SKUs to ~23K (1H21: initiatives for IGA retailers with IGA Shop to drive sales for retailers and ALM ~13K) Online • Branded eCommerce platform lau
Slide 16: Group Financials
GROUP FINANCIALS Alistair Bell Group Chief Financial Officer FY20 Full Year Results FY22 Half Year Results 15
Slide 17: Profit & Loss
Profit & Loss 1H22 1H21 Change $m $m % Sales revenue including charge-through sales 8,219.1 8,093.9 1.5% Charge-through sales (1,068.5) (1,034.2) 3.3% Sales revenue per statutory accounts 7,150.6 7,059.7 1.3% 1 EBITDA 316.2 280.9 12.6% Depreciation and amortisation (85.0) (77.9) 9.1% EBIT 231.2 203.
Slide 18: Project Horizon update: technology infrastructure investment
Project Horizon update : technology infrastructure investment Stage 01 Progress Stage 1 Estimated capex investment over FY22-CY23 Key Deliverables Delivered first milestone with Core $24m Capex in 1H22 Finance successfully going live in $25m-$30m expected in 2H22 • Group technical infrastructu
Slide 19: Cashflows
Cashflows 1H22 1H21 $m $m Net cash from operating activities 212.1 314.9 Net cash used in investing activities (104.9) (102.1) Capital expenditure (60.7) (30.4) Acquisitions of businesses (72.8) (101.1) Proceeds from sale of assets and net loan movements 7.0 7.2 Receipts from subleases 21.6 22.2 Div
Slide 20: Balance Sheet
Balance Sheet 31 Oct 2021 30 April 2021 31 Oct 2020 $m $m $m Capital Expenditure ($m) 300 Trade receivables and prepayments 1,736.1 1,607.8 1,660.9 Inventories 1,070.1 1,008.0 1,109.1 200 Trade payables and provisions (2,423.7) (2,234.4) (2,445.5) 100 Net working capital 382.5 381.4 324.5 Intangible
Slide 21: Debt management
Debt management 1H22 FY21 Debt facility maturity profile1 $m $m 400 Net debt/(cash) 350 300 Gross debt 350.9 - 250 Cash and cash equivalents (202.3) (124.6) 200 Net debt/(cash) 148.6 (124.6) $m 150 100 50 Debt metrics and ratios 0 FY22 FY23 FY24 FY25 FY26 Weighted average debt maturity 2.0 years 2.0
Slide 22: Shareholder distributions
Shareholder distributions Successfully completed up-scaled off market buy back in August 2021 ($200m) Distributions Target dividend payout ratio ~70% of underlying profit after tax FY22 interim dividend increased 31% to 10.5 cents per share, fully franked (1H21: 8.0 cents) 350 20 Ex-dividend
Slide 23: Group Outlook
GROUP OUTLOOK Jeff Adams Group Chief Executive Officer FY20 Full Year Results FY22 Half Year Results 22
Slide 24: Outlook
Outlook Group Strong sales have continued in the first five weeks of 2H22 buoyed by the shift in consumer behaviour and improved retailer competitiveness The Food and Liquor pillars are expected to benefit from a strong Christmas/New Year trading period and the network’s extensive regional prese
Slide 25: Outlook continued
Outlook continued Liquor – 2H22 First five weeks trading: Total Liquor sales increased 7.6% compared with the same period in 2H21, and 25.8% compared with the same period in 2H20 The significant uplift reflects continued strong demand across retail stores and increased sales to on-premise cust
Slide 26: Appendices
Appendices 1. Financial history 2. Bannered store numbers 3. Total Tools accounting FY20 Full Year Results FY22 Half Year Results 25
Slide 27: Financial history
1. Financial history 1H22 1H21 1H20 1H191 1H181 Financial Performance Sales revenue ($m) 7,150.6 7,059.7 6,289.8 6,189.2 6,054.8 EBIT($m) 231.2 203.0 155.7 158.1 156.3 Net finance costs ($m) (22.8) (21.3) (27.0) (14.5) (15.2) Underlying profit after tax ($m) 146.6 129.6 90.6 100.3 99.1 Reported prof
Slide 28: Bannered store numbers
2. Bannered store numbers October April 2021 2021 Pillar Supermarkets 1,625 1,627 Convenience 16 16 Liquor 3,044 2,838 Hardware 731 731 Total 5,416 5,212 Supermarkets Convenience Liquor Hardware Total Store movement Number of stores at April 2021 1,627 16 2,838 731 5,212 Stores opened / joined banne
Slide 29: Bannered store numbers
2. Bannered store numbers October April 2021 2021 Supermarkets Supa Valu IGA 2 2 Core IGA 1,083 1,084 Small Format IGA 257 254 Total IGA bannered stores 1,342 1,340 Friendly Grocer / Eziway 283 287 Total Supermarkets 1,625 1,627 Liquor Cellarbrations 556 548 Bottle-O & Bottle-O Neighbourhood 271 250
Slide 30: Total Tools accounting
3. Total Tools accounting Metcash is required to consolidate 100% of Total Tools Group earnings (with no non-controlling interest) and 100% of Total Tools Group balance sheet, notwithstanding: Metcash’s ownership interest of 70% in Total Tools Holding (TTH), acquired 1 September 2020 and a furth
Slide 31: Disclaimer
Disclaimer This presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as at the date of this presentation. The information in this presentation is of general background and does not purport to be complete. It should be read in conju
Slide 32: Championing Successful Independents
Championing Successful Independents