Slide 1: FY16 Half Year Results
METCASH FY16 Half Year Results - 30 November 2015
Slide 2: Group Update
GROUP UPDATE IAN MORRICE GROUP CHIEF EXECUTIVE OFFICER
Slide 3: Group update – positive momentum continues
Group update – positive momentum continues Group revenue up 1.4% to $6.6b MF&G revenue up 0.7%, continued trend improvement ALM revenue up 3.5% and Hardware revenue up 1.2% Group Underlying EBIT of $133.7m in line with expectations ALM and Hardware continued positive momentum MF&G EBIT r
Slide 4: Damage to NSW DC
Damage to NSW DC Huntingwood Distribution Centre damaged by hail on 25 April 2015 Group’s contingency plans activated to ensure supply to retailers Supply restored to NSW retailers through Victoria, Queensland & ACT distribution centres Supply to ~600 Supermarkets and ~1,500 Liquor customers
Slide 5: Financials
FINANCIALS BRAD SOLLER CHIEF FINANCIAL OFFICER
Slide 6: Profit & Loss
Profit & Loss 1H16 1H15 Change $m $m Group Sales 6,606.0 6,515.3 1.4% MF&G 91.9 119.2 (22.9%) Liquor 25.9 24.9 4.0% Hardware 11.6 9.5 22.1% Corporate 4.3 (0.4) Underlying EBIT 133.7 153.2 (12.7%) Net finance costs (12.8) (24.0) 46.7% Tax (33.5) (36.2) 7.5% Non-controlling interests (0.5) (0.5) Under
Slide 7: Cashflows
Cashflows 1H16 1H15 $m $m Net cash from operating activities 3.1 128.0 Net cash from/(used in) investing activities 237.0 (73.9) Dividends paid and other financing activities (7.6) (43.3) Reduction in net debt 232.5 10.8 Operating cashflows negatively impacted by ~$90m due to elevated working capi
Slide 8: Balance Sheet
Balance Sheet 31 Oct 30 Apr 1 2015 2015 $m $m Trade receivables and prepayments 1,055.0 989.1 Inventories 803.5 712.5 Trade payables and provisions (1,801.6) (1,695.4) Net working capital 56.9 6.2 Intangible assets 1,141.4 1,284.5 Property, plant and equipment 269.6 276.0 Equity accounted investment
Slide 9: Borrowings
Borrowings 1H16 FY15 Net debt Key changes in debt profile $m $m Gross debt (466.1) (751.1) Repaid US$200m of USPP debt Cash and cash equivalents 30.8 83.3 Remaining US$25m USPP debt matures in FY20 Net debt (435.3) (667.8) (US$5m) and FY24 (US$20m) Total available facilities 1,198.6 1,498.1 A
Slide 10: Divisional Results
DIVISIONAL RESULTS IAN MORRICE GROUP CHIEF EXECUTIVE OFFICER
Slide 11: Our strategy
Our strategy SHOPPER-FOCUSED RETAIL BRANDS SUPERMARKETS CONVENIENCE LIQUOR HARDWARE Diamond Campbells Grow IBA retail banners Grow the Mitre 10 network Competitive Pricing Shift to food service Compelling Fresh House brands Like for like growth Like for like growth Core Range & Private Lab
Slide 12: Results - overview by Pillar
Results - overview by Pillar 1H16 1H15 Change Sales Revenue (%) Sales Revenue $m $m 8% Food & Grocery 4,540.2 4,508.4 0.7% Liquor 1,535.1 1,482.7 3.5% Food & Grocery 23% Liquor Hardware 530.7 524.2 1.2% 69% Hardware Metcash Group 6,606.0 6,515.3 1.4% 1H16 1H15 Change EBIT (%) EBIT $m $m Food & Groce
Slide 13: MF&G – Financials
MF&G – Financials 1H16 1H15 Change Sales Revenue MF&G $m $m Supermarkets Sales Revenue Total sales broadly flat (+0.1%) Supermarkets 3,766.2 3,762.0 0.1% Adjusting for estimated impact of damage to the NSW DC, sales Convenience 774.0 746.4 3.7% were up ~1% Total Sales 4,540.2 4,508.4 0.7% Tota
Slide 14: MF&G – Financials
MF&G – Financials 1H16 1H15 Change EBIT MF&G $m $m Total EBIT of $91.9m Sales Revenue Supermarkets 3,766.2 3,762.0 0.1% EBIT declined $27.3m (22.9%) reflecting investment Convenience 774.0 746.4 3.7% in price in Supermarkets and a softer performance in Total Sales 4,540.2 4,508.4 0.7% Convenienc
Slide 15: Continuing progress in transformation of MF&G
Continuing progress in transformation of MF&G INITIATIVE UPDATE Competitive pricing in ~1,280 stores (FY15: ~1,100 stores) COMPETITIVE PRICING Price Match now in ~920 stores (FY15: ~600 stores) 1 Price Match sales momentum continued, ~350bp improvement in LfL warehouse sales Introduced ~120
Slide 16: ALM – Financials
ALM – Financials 1H16 1H15 Sales Revenue Liquor Change $m $m Total sales increased by 3.5% Sales Revenue 1,535.1 1,482.7 3.5% Adjusting for estimated impact of damage to the NSW DC, total sales would have been up ~4.5% EBIT 25.9 24.9 4.0% Wholesale sales through the bannered IBA network EBIT (
Slide 17: Hardware – Financials
Hardware – Financials 1H16 1H15 Sales Revenue Hardware Change $m $m Total Hardware sales increased by 1.2%, impacted by the net closure of 13 stores Sales Revenue 530.7 524.2 1.2% Trade business and joint ventures continued to grow EBIT 11.6 9.5 22.1% EBIT (%) 2.2% 1.8% 40bps EBIT EBIT increas
Slide 18: Group Outlook
GROUP OUTLOOK IAN MORRICE GROUP CHIEF EXECUTIVE OFFICER
Slide 19: Next stage of Transformation - 'Working Smarter' program
Next stage of Transformation - ‘Working Smarter’ program Objective To make doing business with Metcash simpler for our customers and suppliers Working Smarter program and governance framework established to improve Structured program productivity commenced Addressable cost base of ~$1.2b Org
Slide 20: Group Outlook
Group Outlook Highly competitive trading conditions continue in all our markets, particularly Food & Grocery Balance Sheet strengthened Transformation Plan remains on track Strongly supported by retailers Working Smarter program to deliver savings run rate of ~ $100m by Year 3 (FY19) Met
Slide 21: Appendices
Appendices 1. Financial highlights 2. Restated Sales and EBIT to reflect sale of Automotive 3. Bannered store numbers 4. Contact details 21
Slide 22: 1. Financial highlights
1. Financial highlights Financial Performance 1H16 1H15 1H14 1H13 1H12 Sales ($m) 6,606.0 6,515.3 6,471.9 6,246.3 6,068.9 1 Underlying EBIT ($m) 133.7 153.2 175.4 197.0 199.6 Net finance costs ($m) (12.8) (24.0) (28.5) (29.8) (32.4) Underlying profit after tax ($m) 86.9 92.5 99.6 113.3 112.5 Reporte
Slide 23: 2. Restated Sales and EBIT to reflect sale of Automotive
2. Restated Sales and EBIT to reflect sale of Automotive Half year result 1H16 1H15 1H14 1H13 1H12 Sales Food & Grocery 4,540.2 4,508.4 4,483.8 4,552.1 4,533.7 Liquor 1,535.1 1,482.7 1,538.1 1,272.6 1,108.0 Hardware 530.7 524.2 450.0 421.6 427.2 Total sales 6,606.0 6,515.3 6,471.9 6,246.3 6,068.9 EB
Slide 24: 3. Bannered store numbers
3. Bannered store numbers Pillar Oct 15 Apr 15 Supermarkets1 1,695 1,708 Campbells 18 18 Liquor 2,632 2,571 Hardware 383 396 Total 4,728 4,693 Store movement Supermarkets Liquor Hardware Number of stores at April 2015 1,708 2,571 396 Stores joined banner during the period 18 230 6 Stores left banner
Slide 25: 3. Bannered store numbers
3. Bannered store numbers Supermarkets Oct 15 Apr 15 Supa IGA 417 428 IGA 828 829 IGA-Xpress 198 198 Total IGA bannered stores 1,443 1,455 Friendly Grocer / Eziway 252 253 Total Supermarkets 1,695 1,708 Liquor Oct 15 Apr 15 Cellarbrations 501 478 Bottle-O & Bottle-O Neighbourhood 617 636 IGA Liquor
Slide 26: Contact details
Contact details For additional information contact: Stephen Woodhill, Group General Manager Corporate Affairs Phone: 61 2 9741 3415 E-mail: stephen.woodhill@metcash.com Ross Moffat, Acting General Manager Investor Relations Phone: 61 2 9751 8368 E-mail: ross.moffat@metcash.com Merrin Hodge, Investor
Slide 27: 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 28: Metcash
METCASH SUCCESSFUL INDEPENDENTS