Metcash Limited · ASX:MTS
Metcash — Merger or Acquisition (May 2005)
12 slides from Metcash's merger presentation, May 25, 2005
Slide 1: ASX cover letter for presentation
METCASH TRADING LIMITED ABN 61 000 031 569 4 NEWINGTON ROAD SILVERWATER NSW 2128 AUSTRALIA PO BOX 6226 SILVERWATER BUSINESS CENTRE NSW 1811 AUSTRALIA 25 May 2005 PHONE: 02 9741 3000 FAX: 02 9741 3027 WEB: www.metcash.com The Manager Company Announcements Office Australian Stock Exchange Limited Leve
Slide 2: Champion of the Independent Retailer: Revised offer for Foodland Australia
+ Champion of the Independent Retailer Revised offer for Foodland Australia 25 May 2005
Slide 3: Important Notice
+ Important Notice This presentation for Metcash Trading Limited (Metcash) is designed to provide a high level overview of the acquisition by Metcash for Foodland Associated Limited (Foodland) Australian business. No representation, warranty or undertaking, express or implied, is made as to the fair
Slide 4: Offer for FAL Australia
+ Offer for FAL Australia Offer is to acquire Offer for FAL – West Australian Franchise and Supply division, – 60 Action stores excluding 19 Action stores and 3 Australia Action development sites to be acquired by WOW – All other FAL Australian assets Consideration consists of: Consideration cas
Slide 5: Benefits of the acquisition
+ Benefits of the acquisition Value Creation 9 EPS accretive for Metcash 9 Complementary acquisition in core business Scale and Growth 9 Increases business scale and expands wholesale network 9 Expand and strengthen Independents 9 Improved buying power Synergies 9 Supply chain and logistic benefits
Slide 6: Closing the gap
+ Closing the gap Retail 19 Action stores Wholesale 30 Independents(1) Other 24.9 25 21.3 Sales (2004A) (A$bn) 18% 20 17.8 15.1 15 10 5 0 (2) (2) WOW CML New MTT MTT (1) Independent Revenue represents estimated incremental revenue earned by Independents (Source: Metcash Management estimates) (2) WOW
Slide 7: Creating a national network
+ Creating a national network The New Metcash Stores QLD NSW VIC SA WA Total SUPA IGA(1) 86 30 100 104 83 403 IGA(1) 161 255 251 105 119 891 Foodworks(2) 446 40 201 - 6 693 Other non banner 3,219 customers(3) Total 693 325 552 209 208 5,206 (1) Includes Foodland’s Action stores, Dewsons and Supa Val
Slide 8: Indicative Transaction Timetable
+ Indicative Transaction Timetable Announcement 24 May 2005 Notice of Meeting / Explanatory Memorandum to sent to July 2005 Foodland shareholders Shareholder meetings August 2005 This timetable is indicative and will be updated when the dates are confirmed 7
Slide 9: A transforming transaction
+ A transforming transaction 9 Creates substantial shareholder value 9 Significantly increases business scale and expands network 9 Strengthens ability to compete 8
Slide 10: Questions
TRADING LIMITED AUSTRALASIA Questions
Slide 11: Appendix
+ Offer price for FAL Australia Appendix 10
Slide 12: Offer price for FAL Australia
+ Offer price for FAL Australia Cash alternative Share alternative A$m $ per share A$m $ per share Value of Cash paid 737 6.25 - - Value of 2.05 Metcash - - 816(1) 6.93 shares 737 6.25 816 6.93 Consideration which is subject to due diligence - Surplus cash 18 0.15 18 0.15 - Tax receivable to be 25 0