Metcash Limited · ASX:MTS
Metcash — Citi Inaugural Australian Investment Conference 2009
28 slides from Metcash's conference presentation, Oct 20, 2009
Slide 1: ASX cover letter for Citi conference presentation
Metcash Limited ABN 32 112 073 480 50 Waterloo Road Macquarie Park NSW 2113 Australia For personal use only PO Box 6226 Silverwater Business Centre NSW 1811 Australia Ph: 61 2 9751 8200 Fax: 61 2 9889 1557 20 October 2009 The Manager, Companies Australian Stock Exchange Company Announcements Office
Slide 2: Metcash Presentation - Citi Inaugural Australian Investment Conference
“Champion of the Independent Retailer” 2009 For personal use only METCASH PRESENTATION Citi Inaugural Australian Investment Conference 20 October 2009 Andrew Reitzer Chief Executive Officer
Slide 3: Company Overview
Company Overview 2009 For personal use only Listed on Australian Stock Exchange (“MTS”) Capitalised at ~A$3.3bn Ranked in top 80 of Australian companies by market capitalisation Food and liquor wholesaler Business – Marketing and distribution of food, liquor and other fast moving consumer good
Slide 4: Corporate Structure and Divisional Overview
Corporate Structure and Divisional Overview 2009 For personal use only METCASH LIMITED Marketing and wholesale distribution company operating in Australia & NZ Sales ~ A$11.0 bn EBITA ~ A$382.5m 100% Owned Sales ~ $6.7bn Sales ~ $2.6bn Sales ~ A$1.7bn EBITA ~ $315.5m EBITA ~ $33.8m E
Slide 5: Financial Highlights - Divisional
Financial Highlights - Divisional 2009 For personal use only Wholesale Sales % by Division EBITA % by Division Campbells Campbells Wholesale A$1,660.4bn A$1.7bn Wholesale ALM A$33.0m 15% A$33.8m 9% 9% $A2.6bn ALM 24% IGA>D 61% A$6,674.4bn A$6.7bn IGA>D A$315.5m 82% Note: All figures for the year end
Slide 6: Financial Highlights - Year Trend
Financial Highlights - 5 Year Trend 2009 For personal use only Market Share (MAT %) Total Sales Revenue ($m) 20.0% 18.8% 19.0% 12,000 18.5% 18.6% 10,982 10,116 9,695 10,000 16.0% 8,214 MAT 13.5% $M 8,000 7,010 12.0% 6,000 8.0% 4,000 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 EBITA ($m) Cost o
Slide 7: Financial Highlights - Year Trend
Financial Highlights - 5 Year Trend 2009 For personal use only Profit after Tax ($m) Operating Cashflow ($m) 250.0 202.5 300.0 197.4 200.0 242.7 248.1 250.0 158.6 197.6 $M 150.0 200.0 177.5 $M 126.8 150.0 130.6 100.0 81.2 100.0 50.0 50.0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 2009 PAT bef
Slide 8: Our Business Pillars - IGA>D
Our Business Pillars - IGA>D 2009 For personal use only About IGA>D “Champion of the Independent Retailer” Marketing and distribution specialists – supplies dry grocery and fresh food to independent grocery stores 61% of Metcash sales revenue and 82% EBITA 6 major DCs in NSW, QLD, VIC, SA &
Slide 9: Our Business Pillars - IGA>D Fresh Operations
Our Business Pillars - IGA>D 2009 For personal use only About IGA>D’s Fresh Operations Strategic Rationale – to provide independent retailers with complete, consistent and quality Fresh food offer to meet customer needs 4 key categories of Produce, Meat, Bakery and Delicatessen serviced Nation
Slide 10: Our Business Pillars - Australian Liquor Marketers (ALM)
Our Business Pillars - Australian Liquor Marketers (ALM) 2009 For personal use only About ALM Broad range liquor wholesaler Operates 18 distribution centres in Australia (NSW, QLD, VIC, SA, WA, NT & TAS) and NZ Supplies ~15,000 customers including hotels, liquor stores restaurants and other li
Slide 11: Our Business Pillars - Campbells Wholesale
Our Business Pillars - Campbells Wholesale 2009 For personal use only About Campbells Wholesale Focus on convenience, route and hospitality trade channels Food service and distribution 4 sub-divisions based on customer segment Campbells Cash & Carry (CCC) - 22 metropolitan warehouses Campb
Slide 12: Why Independent Retailers Succeed
Why Independent Retailers Succeed 2009 For personal use only 1. Metcash has formed: 2. “Bacon and Eggs Story” Chain of independent retailers Committed Think and behave like a chain Manager is the owner => But act locally − Lower costs & − Higher service ‘Energised’ independent sector bel
Slide 13: Why Metcash Succeeds
Why Metcash Succeeds 2009 For personal use only Stable, capable Management Team Divisions aligned to service specific and differentiated needs of respective customer segments Model is focussed on group's core competencies Marketing, merchandising and distribution logistics No competition w
Slide 14: Core Competencies - Logistical Excellence, Marketing & Brand Building
2009 For personal use only CORE COMPETENCIES - LOGISTICAL EXCELLENCE - MARKETING & BRAND BUILDING 12
Slide 15: Logistical Excellence
Logistical Excellence 2009 For personal use only Composite DC’s Mini-loader / Voice Pick Efficiencies driven through infrastructure Efficiencies driven through technology investment investment Cost to serve Operational Excellence Put to Light / Mini-loader CODB Reduction Adjusting the Logistics Solu
Slide 16: Core Competencies - Logistical Excellence, Marketing & Brand Building
2009 For personal use only CORE COMPETENCIES - LOGISTICAL EXCELLENCE - MARKETING & BRAND BUILDING 14
Slide 17: Marketing and Brand Building - Independent Grocers of Australia (IGA)
Marketing and Brand Building - Independent Grocers of Australia (IGA) 2009 For personal use only Our Most Significant Point of Difference 15
Slide 18: Marketing and Brand Building - IGA Stores channels
Marketing and Brand Building - IGA Stores 3 channels 2009 For personal use only IGA – world’s largest voluntary supermarket network • Large format stores • Full department offer • Medium “top up” stores • Selected department ranging • Convenience format stores • Targeted demographic range 16
Slide 19: Marketing and Brand Building - Championing Independent Retailers
Marketing and Brand Building - Championing Independent Retailers 2009 For personal use only Retail Actively growing our “We offer a chain store support structure for independents with one major difference. We are consultative rather than Operations retailers dictatorial” We have developed a talent p
Slide 20: Marketing and Brand Building - Retail Standards & Support
Marketing and Brand Building - Retail Standards & Support 2009 For personal use only Store Standards Look and Feel Product Fit out Ranging – core Displays grocery and fresh Ambience food Passion Stock levels Service Community focus Staff training & Staff sourced knowledge locally M
Slide 21: Marketing and Brand Building - Retail Development
Marketing and Brand Building - Retail Development 2009 For personal use only Focus on developing new stores and improving existing stores Total Extensions & New Stores & Refurbishments 200 Total new ('000) sq metres 180 178 160 151 140 137 135 120 126 100 109 103 96 80 67 76 62 62 60 51 54 40 49 27
Slide 22: Marketing & Brand Building - IGA Marketing
Marketing & Brand Building - IGA Marketing 2009 For personal use only “Our vision is to make the IGA brand the single most valuable asset we have” Our Marketing Programs include IGA Products Community Chest: The IGA program supports Black & Gold local communities by donating 1-2c per retail Meetin
Slide 23: Marketing & Brand Building - Our Marketing Programs
Marketing & Brand Building - Our Marketing Programs 2009 For personal use only Other Marketing Programs to support retailers include: National TV ads (Local Hero tag line) Magazines & Catalogues Communication Research State and National Conferences / Expo Retailer of the Year Training
Slide 24: Concluding Remarks
2009 For personal use only CONCLUDING REMARKS 22
Slide 25: Concluding Remarks
Concluding Remarks 2009 For personal use only Defensive stock (non-cyclical) Selling ‘basic essentials’ (groceries + liquor!) – no discretionary spend Solid, steady earnings flow and high dividend pay-out Strong Management Team Focused on driving core businesses IGA>D – Increased teamwork scor
Slide 26: Concluding Remarks - Earnings Guidance and Capital Management
Concluding Remarks 2009 For personal use only Earnings Guidance At AGM on 3 Sep 09, Management reconfirmed EPS (pre IA) growth range of 7%-10% for FY10 (based on FY09 EPS of 29.53 cps) The trading environment remains strong but uncertainties continue to impact wealth and discretionary consumer s
Slide 27: Champion of the Independent / The Third Force
2009 For personal use only “Champion of the Independent” “The Third Force” 25
Slide 28: For additional information contact
2009 For personal use only For additional information contact: Adrian Gratwicke, GM Finance Phone: 61 2 9741 3248 Fax 61 2 9741 3027 E-mail adrian.gratwicke@metcash.com Or visit our website: www.metcash.com Disclaimer This presentation is for the general information of investors. Metcash Limited giv
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