Metcash Limited · ASX:MTS
Metcash — Investor Presentation (March 2007)
15 slides from Metcash's investor presentation, Mar 1, 2007
Slide 1: US Investor Presentation
“Champion of the Independent Retailer” 2007 US INVESTOR PRESENTATION Andrew Reitzer Chief Executive Officer “The Third Force in the Australian Grocery Market”
Slide 2: Agenda
AGENDA 2007 Company Overview Half Year Highlights Strategic Review of Business Divisions 1. IGA>D 2. ALM 3. CW Concluding Remarks Appendix contains: ¾ Half Year Presentation – 31 October ‘06 ¾ Half Year Statutory Accounts (Appendix 4D)
Slide 3: Company Overview
COMPANY OVERVIEW • Listed on Australian Stock Exchange (“MTS”) 2007 – Capitalised at ~A$3.5bn – Ranked in top 80 • Business - Marketing and distribution of food, liquor and other fast moving consumer goods to independently owned supermarkets & liquor outlets • Core Competencies – Buying and merchand
Slide 4: Divisional Overview
DIVISIONAL OVERVIEW 2007 • Sales ~ A$5.5bn • Sales ~ A$2.2bn • Sales ~ A$1.3bn • EBIT 4.3% HY07 • EBIT 1% HY07 • EBIT 2.2% HY07 • National footprint • National footprint • National footprint + NZ • Supplies > 2,700 • 4 distinct sub-divisions • Supplies > 13,000 independent servicing differing custom
Slide 5: Why We Succeed?
WHY WE SUCCEED? • Stable, capable Management Team (refer Appendix) 2007 • Each Division caters specifically for its customers needs – Bulk deliveries in IGA>D and ALM to Single Pick in CW and ALM • Model is focussed on Group’s core competencies – Marketing, merchandising and distribution logistics –
Slide 6: Track Record
TRACK RECORD ANNUAL WHOLESALE SALES NATIONAL METCASH MARKET SHARE - ALL CUSTOMERS UP TO 18.8% FROM 12.5% IN 2002 2007 9,500 20.0% 9,000 8,500 18.0% 8,000 MAT - % SALES - $'M 16.0% 7,500 7,000 14.0% 6,500 12.0% 6,000 5,500 10.0% QTR TO 5,000 2002 2003 2004 2005 2006 1/1/07 2002 2003 2004 2005 2006 20
Slide 7: Half Year Highlights
HALF YEAR HIGHLIGHTS Total Revenue up 37% to A$4.8 billion 2007 Wholesale Sales rose 34% to $4.6 billion EBITA grew 47% to A$140 million and EBITA margin rose to 3.12% from 2.76% last year Cost of Doing Business as a percentage of gross profit fell by 0.51% to 68.37% PBT as % to Sales rose
Slide 8: IGA>D Strategic Review
IGA>D STRATEGIC REVIEW 2007 • FAL integration complete – Successful IGA>D operating model established in Western Australia (32%+ market share) – Action stores divested – Buying synergies • IGA differentiated model a success – Comp store growth ~4-5% – Market share held at 18.8% – Retailer profitabil
Slide 9: IGA>D Strategic Review
IGA>D STRATEGIC REVIEW 2007 • Supply chain efficiencies continuing to be driven – New “Mega DC” to service significant growth being experienced in Queensland on-line end May this year – Voice-pick still being implemented in remaining fresh & frozen warehouses • Fresh – Significant opportunity to inc
Slide 10: ALM Strategic Review
ALM STRATEGIC REVIEW • Significant market upheaval 2007 – Chains expansion into liquor retailing and hotels – Manufacturers reassessing supply chains – Despite coming under pressure ALM has succeeded in substantially retaining volume to date (up 4.2% in first half) – Margins under pressure + investm
Slide 11: Campbells Wholesale Strategic Review
CAMPBELLS WHOLESALE STRATEGIC REVIEW 2007 • Has transformed itself into highly focussed customer service-centric wholesaler, operating four distinct service offerings – Business restructuring necessitated by apparent demise of ‘Mom & Pop’ convenience sector … which has recently seen a resurgence – C
Slide 12: Concluding Remarks
CONCLUDING REMARKS • Strong Management Team 2007 • Focused on driving core businesses – IGA>D – Teamwork Score (Fresh) + Buying Synergies + Store reinvestment – ALM – Patience + Continue to consolidate banners under IBA – CW – Continue to expand market share in confectionery and organised convenienc
Slide 13: Appendices
APPENDICES 2007 1. Management Team
Slide 14: Stable, Experienced Management Team
Stable, Experienced Management Team Date of Appointment 4 May 1998 28 years experience in the retail/wholesale industry. Previous 2007 positions at Metro Cash & Carry include Group Operations Director, heading operations in Russia and Israel, Marketing Director, IT Director and managing various oper
Slide 15: Champion of the Independent
_—_—————————————— "CHAMPION OF THE INDEPENDENT" PV UCAS “THE THIRD FORCE” _——————