Metcash Limited · ASX:MTS

Metcash — H1 FY2016 Earnings Presentation

29 slides from Metcash's earnings presentation, Nov 30, 2015

  1. Slide 1: Metcash 2016 Half Year Results Presentation cover letter

    METCASH LIMITED ABN 32 112 073 480 1 THOMAS HOLT DRIVE MACQUARIE PARK NSW 2113 AUSTRALIA For personal use only 30 November 2015 Market Announcements Office Australian Securities Exchange Limited 20 Bridge Street Sydney NSW 2000 Dear Sir/ Madam METCASH LIMITED – 2016 HALF YEAR RESULTS PRESENTATION Pl

  2. Slide 2: Metcash FY16 Half Year Results

    For personal use only METCASH FY16 Half Year Results - 30 November 2015

  3. Slide 3: Group Update

    For personal use only GROUP UPDATE IAN MORRICE GROUP CHIEF EXECUTIVE OFFICER

  4. Slide 4: Group update – positive momentum continues

    Group update – positive momentum continues For personal use only  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

  5. Slide 5: Damage to NSW DC

    Damage to NSW DC For personal use only  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 ~

  6. Slide 6: Financials

    For personal use only FINANCIALS BRAD SOLLER CHIEF FINANCIAL OFFICER

  7. Slide 7: Profit & Loss

    Profit & Loss For personal use only 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 inter

  8. Slide 8: Cashflows

    Cashflows For personal use only 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

  9. Slide 9: Balance Sheet

    Balance Sheet For personal use only 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 Equit

  10. Slide 10: Borrowings

    Borrowings For personal use only 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 facilitie

  11. Slide 11: Divisional Results

    For personal use only DIVISIONAL RESULTS IAN MORRICE GROUP CHIEF EXECUTIVE OFFICER

  12. Slide 12: Our strategy

    Our strategy For personal use only 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  Co

  13. Slide 13: Results - overview by Pillar

    Results - overview by Pillar For personal use only 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 (%) E

  14. Slide 14: MF&G – Financials

    MF&G – Financials For personal use only 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

  15. Slide 15: MF&G – Financials

    MF&G – Financials For personal use only 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

  16. Slide 16: Continuing progress in transformation of MF&G

    Continuing progress in transformation of MF&G For personal use only 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 sa

  17. Slide 17: ALM – Financials

    ALM – Financials For personal use only 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 banne

  18. Slide 18: Hardware – Financials

    Hardware – Financials For personal use only 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% 40b

  19. Slide 19: Group Outlook

    For personal use only GROUP OUTLOOK IAN MORRICE GROUP CHIEF EXECUTIVE OFFICER

  20. Slide 20: Next stage of Transformation - 'Working Smarter' program

    Next stage of Transformation - ‘Working Smarter’ program For personal use only 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 cos

  21. Slide 21: Group Outlook

    Group Outlook For personal use only  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

  22. Slide 22: Appendices

    Appendices For personal use only 1. Financial highlights 2. Restated Sales and EBIT to reflect sale of Automotive 3. Bannered store numbers 4. Contact details 21

  23. Slide 23: 1. Financial highlights

    1. Financial highlights For personal use only 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

  24. Slide 24: 2. Restated Sales and EBIT to reflect sale of Automotive

    2. Restated Sales and EBIT to reflect sale of Automotive For personal use only 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 6,47

  25. Slide 25: 3. Bannered store numbers

    3. Bannered store numbers For personal use only 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 23

  26. Slide 26: 3. Bannered store numbers

    3. Bannered store numbers For personal use only 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 Neighbourho

  27. Slide 27: Contact details

    Contact details For personal use only 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

  28. Slide 28: Disclaimer

    Disclaimer For personal use only 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 s

  29. Slide 29: Metcash – Successful Independents

    For personal use only METCASH SUCCESSFUL INDEPENDENTS

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