Metcash Limited · ASX:MTS
Metcash — Shareholder Meeting (August 2016)
17 slides from Metcash's shareholder meeting presentation, Aug 31, 2016
Slide 1: Metcash Limited 2016 Annual General Meeting
Metcash Limited ABN 32 112 073 480 1 Thomas Holt Drive Macquarie Park 31 August 2016 NSW 2113 Australia For personal use only Market Announcements Office Australian Securities Exchange Limited 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam METCASH LIMITED 2016 ANNUAL GENERAL MEETING In accordance w
Slide 2: Chairman's Address
Metcash Limited ABN 32 112 073 480 1 Thomas Holt Drive Macquarie Park NSW 2113 Australia For personal use only 31 August 2016 2016 Annual General Meeting Chairman’s Address Ladies and Gentlemen I feel privileged to have been appointed Chairman of Metcash at a time the Group is going through signific
Slide 3: Chairman's Address (continued)
In order to drive a performance culture, the Group needs to ensure we have the right capabilities and experience to support our growth ambitions. Board renewal has continued during the year, with two new directors being appointed to the Board, Ms Helen Nash in October 2015 and Mr Murray Jordan in Fe
Slide 4: Annual General Meeting August 2016
For personal use only Annual General Meeting 31 August 2016 1
Slide 5: Group Update
For personal use only Group Update IAN MORRICE GROUP CHIEF EXECUTIVE OFFICER 2
Slide 6: Our purpose and vision
Our purpose and vision For personal use only OUR PURPOSE OUR VALUES INTEGRITY IS THE FOUNDATION OF OUR VALUES: SUCCESSFUL INDEPENDENTS • Supporting our customers and suppliers • Our people are empowered and accountable Independence is worth fighting for! • Adding value in our community OUR MODEL OUR
Slide 7: Group update
Group update For personal use only Group revenue up 1.3% Supermarkets sales up 0.5% - adjusting for estimated impact of damage to NSW distribution centre, Supermarkets revenue up 0.9% IGA retailers have experienced growth for last 4 consecutive reporting periods Liquor sales were up 3.7% and
Slide 8: Group update
Group update For personal use only Post year end, completed the acquisition of Home Timber & Hardware Group (HTH) Creates a clear number 2 player in the sector with ~$2bn of sales Expected to be ~4% EPS accretive in the first full financial year following the completion of the acquisition, pre
Slide 9: Profit & Loss
Profit & Loss For personal use only FY16 FY15 Change $m $m Group Sales 13,541.3 13,369.8 1.3% Food & Grocery 179.9 216.8 (17.0%) Liquor 62.1 57.6 7.8% Hardware 32.8 30.1 9.0% Corporate1 0.6 (7.2) EBIT 275.4 297.3 (7.4%) Net finance costs (27.0) (55.1) 51.0% Tax (68.4) (67.2) (1.8%) Non-controlling i
Slide 10: Balance Sheet
Balance Sheet For personal use only 1 30 April 2016 30 April 2015 $m $m Trade receivables and prepayments 967.7 989.1 Inventories 673.6 712.5 Trade payables and provisions (1,632.0) (1,695.4) Net working capital 9.3 6.2 Intangible assets 1,127.5 1,284.5 Property, plant and equipment 251.9 276.0 Equi
Slide 11: Results – overview by pillar
Results – overview by pillar For personal use only FY16 FY15 Change Sales Revenue (%) $m $m Sales Revenue 8% Food & Grocery 9,265.4 9,217.8 0.5% Food & Grocery 24% Liquor 3,219.3 3,103.6 3.7% 68% Hardware 1,056.6 1,048.4 0.8% Liquor Total Sales Revenue 13,541.3 13,369.8 1.3% Hardware EBIT EBIT (%) F
Slide 12: Food & Grocery – FY16 key initiatives and FY17 focus
Food & Grocery – FY16 key initiatives and FY17 focus For personal use only NETWORK INVESTMENT & RETAIL EXCELLENCE Target of ~150 Diamond stores achieved Sales uplift from Diamond Stores continues, with a ~16% increase in both warehouse and retail sales 100 Diamond stores refurbished in FY16
Slide 13: Working Smarter
Working Smarter For personal use only THE WHY THE HOW • We need to simplify the way we operate so we can meet Working Smarter will make doing business with Metcash the future needs of our customers, retailers, and suppliers simpler for customers, suppliers and our people through: • Our organisation
Slide 14: NSW DC - update
NSW DC - update For personal use only Huntingwood Distribution Centre damaged by hail on 25 April 2015 April 2015 Group’s contingency plans activated to ensure continuity of supply to retailers Supply restored to NSW retailers through Victoria, Queensland and ACT distribution centres Metcash
Slide 15: Home Timber & Hardware acquisition
Home Timber & Hardware acquisition For personal use only Metcash entered into a binding agreement to acquire 100% of the Home Timber & Hardware Group (‘HTH’), a leading participant in the hardware market in Australia Purchase consideration of $165m, equates to a multiple of ~7 times underlying E
Slide 16: Group outlook
Group outlook For personal use only FY17 includes a 53rd trading week1 Highly competitive trading conditions remain in all our markets Additional impact from increased Food & Grocery competition in both the South Australian and Western Australian markets The Food & Grocery business continues
Slide 17: Annual General Meeting August 2016
For personal use only Annual General Meeting 31 August 2016 14