Metcash Limited · ASX:MTS
Metcash — Investor Presentation (November 2002)
25 slides from Metcash's investor presentation, Nov 29, 2002
Slide 1: An “independent” Success!
An “independent” Success! @ amnmens TRADING LIMITED AUSTRALASIA NY
Slide 2: Imagine this !
Imagine this ! 29 Retail Customer Banners 130 Company owned Retail Stores Declining sales / Numerous years of declining market share Poor service levels No new stores No refurbishments and store upgrades Supplier support withdrawn Customer confidence down / selling their stores to th
Slide 3: Imagine this !
Imagine this ! Not making any money - almost broke Matrix Organisational Structure - no clear accountability Invaded by consultants:- 12 kg Profit Improvement Program! Share Price down to 37 cents Poor and unreliable financial systems Poor banking relationships Low Staff Morale But,
Slide 4: So What did we do?
So What did we do? Defined Mission / Vision Identified What our Job Was Set the Rules and Values Developed a “Quick” Strategic Plan
Slide 5: Mission Statement
Mission Statement To be the marketing and distribution leader in food and other fast moving consumer goods.
Slide 6: Our Job...
Our Job... “To be the Champion of the Independent Retailer”
Slide 7: Our Rules!
Our Rules! Never compete with our customers - be a focussed wholesaler. Never go backwards into manufacturing. In stock, on time, first time is everything. Not only a box mover! Marketing and Retail Services are key to our success. All decisions must be made in consultation with our custom
Slide 8: Our Values
Our Values Championing the Customer. Our stakeholders are entitled to added value. Responsibility and personal accountability. Empowering our people and supporting our communities. Integrity in everything we do.
Slide 9: Our First “Quick” Strategic Plan
Our First “Quick” Strategic Plan 12 “Must Do” Things 1. Rationalise 29 “Banners” into one “Brand” 2. Build a system of “Partnership” with our Retail Customers. 3. Take Campbells Cash & Carry back to being wholesale only and encourage volume sales through a “cheaper by the case” programme. Continued…
Slide 10: Our First “Quick” Strategic Plan
Our First “Quick” Strategic Plan 12 “Must Do” Things 4. Sell all company owned retail stores to our franchised customers. 5. Implement a clear business unit based organisational structure with responsibility and accountability as low as possible and “near” the customer. 6. Ask suppliers for another
Slide 11: Our First “Quick” Strategic Plan
Our First “Quick” Strategic Plan 12 “Must Do” Things 7. Lead from the front - do what you say. 8. Buy the other 50% of Australian Liquor Marketers. 9. No consultants - build our own capabilities. 10. Share the rewards - share options issued to all staff at 44 cents. 11. Reward performance - punish f
Slide 12: Once we turned the corner we also ....
Once we turned the corner we also …. Implemented annual strategic planning sessions. Defined a Metcash Management Planning and Control System that makes the Strategic Plan a living document. Celebrated every success. Invested in our people. Got close to the customer.
Slide 13: Big Milestones for us were.....
Big Milestones for us were….. Sale of the final company owned retail store. Ownership of 100% of Australian Liquor Marketers. Purchase by our customers of 105 Franklin stores. Winning the IGA Presidents Cup three years in a row for the best development of IGA worldwide. Sale of John Lewis
Slide 14: Where are we now?
Where are we now? Metcash Australasia Half Year to October 2002 Sales + 20.5% P.A.T. $ + 43.0% Net cash generated this half + $88.0m IGA Distribution Australian Liquor Marketers Campbells Cash & Carry 8 Grocery Distribution 17 Liquor Distribution Centres 38 Cash & Carry branches Centres 4 Convenienc
Slide 15: Where are we now? Sales growth
Where are we now? 25.00% 20.50% 23.00% 21.00% 19.00% 16.00% 17.00% 13.90% 15.00% 13.00% 11.00% 7.30% 9.00% 7.00% 5.00% FY2000 FY2001 FY2002 FY2003 First Half Sales Growth
Slide 16: Where are we now? Market share of grocery customers
Where are we now? 20.00% 18.00% 14.60% 15.80% 16.00% 12.60% 13.00% 14.00% 11.80% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 1998 1999 2000 2001 Sep-02 Market Share of our Grocery customers
Slide 17: Key Feedback - IGA Market Survey
Key Feedback - IGA Market Survey Strengths - The last ‘main’ shop - Nationally • Where IGA stores compete with the chains they have strong market share IGA 48.5% IGA 27.0% • IGA owns the top up / convenience end of the market - opportunity to grow! • This shows market share around surveyed IGA store
Slide 18: Key Feedback - IGA Market Survey
Key Feedback - IGA Market Survey Strengths - Best Attributes - Nationally • Of the top ten supermarket attributes IGA beats the chains on four... Community Friendly Checkouts Parking IGA - A chain of Independents that think like a chain but act locally
Slide 19: Where are we now? CODB % of Gross Profit
Where are we now? 90.00% 82.4% 85.00% 80.5% 80.00% 75.2% 75.00% 72.2% 70.00% FY2000 FY2001 FY2002 First Half FY2003 CODB % of Gross Profit
Slide 20: Where are we now? Operating Cash Flow
Where are we now? $160.00 $136.0 $140.00 $120.00 $88.0 $100.00 $58.7 $80.00 $60.00 $40.00 $3.4 $20.00 $0.00 FY2000 FY2001 FY2002 FY2003 First Half Operating Cash Flow ($M)
Slide 21: Where are we now? P.A.T.
Where are we now? $80.00 $70.00 $57.70 $60.00 $50.00 $38.00 $33.00 $40.00 $30.00 $20.00 $1.00 $10.00 $0.00 FY2000 FY2001 FY2002 First half FY2003 P.A.T. $M
Slide 22: Where are we now? EPS and share price growth
Where are we now? EPS AND SHARE PRICE GROWTH EPS Share Price 8 $3.00 7 $2.50 6 5 $2.00 4 $1.50 3 $1.00 2 1 $0.50 0 $0.00 1st Half 01 2nd Half 01 1st Half 02 2nd Half 01 1st Half 02 2nd Half 02 1st Half 03 -1 -$0.50 -2 EPS -3 -$1.00 SHARE PRICE
Slide 23: Where are we now? Organisational Climate Survey
Where are we now? March 2002 Organisational Climate Survey Achieved Gold Medal Standard - within the Top 10% in Australia Pride & Passion High
Slide 24: Where to in the Future?
Where to in the Future? REDUCE C.O.D.B. MORE SALES NEW BUSINESS $ •Technology •Branding •New retail formats •Peoplez •Marketing •Greater share of •Supply Chain •Ranging confectionery Efficiencies •Retail Compliance convenience sector •New Stores •Less manufacturer •Store refurbishment directs •One p
Slide 25: TRADING LIMITED AUSTRALASIA
TRADING LIMITED AUSTRALASIA TRADING LIMITED AUSTRALASIA