Professional Documents
Culture Documents
PO Box 6226
Silverwater Business Centre
NSW 1811 Australia
Ph: 61 2 9751 8200
Fax: 61 2 9889 1557
20 October 2009
Dear Sir/Madam
Yours faithfully
John Randall
Company Secretary
“Champion of the Independent Retailer” 2009
METCASH PRESENTATION
Citi Inaugural Australian Investment Conference
20 October 2009
Andrew Reitzer
Chief Executive Officer
Company Overview 2009
Core Competencies
Buying and merchandising
Marketing and brand building
Distribution logistics and warehousing
Championing the interests of the independent grocery and liquor sectors
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Corporate Structure and Divisional Overview 2009
METCASH LIMITED
Marketing and wholesale distribution company operating in Australia & NZ
Sales ~ A$11.0 bn
EBITA ~ A$382.5m
100% Owned
Includes IGA Fresh NSW, QLD, VIC, SA, WA, NT, NSW,QLD, VIC, SA, WA & NT
NSW, QLD, VIC, SA & WA TAS & New Zealand 4 distinct sub-divisions servicing
6 major DC’s delivering (Dry, 18 major DC’s delivering wines, differing customer needs:
chilled, frozen + GM & HBC) spirits, RTD’s & imported / – Cash & Carry (22 DCs)
~ 2,500 independent stores as boutique beers – Regional Wholesale (17
customers including ~1,270 IGA ~ 15,000 independent liquor DCs)
branded stores stores, hotels, pubs and other – CSD (4 stockless DCs & 4
Market share ~19% licensed premises confectionery DCs )
Competitive store comps ~9% ~1,600 stores marketed under – Foodlink (Foodservice)
40 – 60 new stores p/a IBA umbrella’s 3 main store Supplies ~ 78,000 customers
brands
60 – 70 major refurbs p/a
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%
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
420.0 80.00%
382.5
380.0
341.3
340.0 309.9 68.24%
70.00% 67.16% 66.86%
300.0 65.21%
$M
62.41%
260.0
223.7
60.00%
220.0 194.5
180.0
140.0 50.00%
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
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Financial Highlights
- 5 Year Trend 2009
202.5 300.0
197.4
200.0 242.7 248.1
250.0
158.6 197.6
$M
$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 before non-recurring item (NRI) was $219.7m. NRI of
$17.2 m post tax incurred from terminating interest rate collar in 1H09
24.00
Cents
21.06
15.0
20.00 11.5
16.99 9.5
10.0
16.00
12.00 5.0
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
2009 EPS calculated on PAT before non-recurring item (NRI) was 28.73 cents
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Our Business Pillars
- IGA>D 2009
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 & WA delivering
(dry, chilled, frozen + GM)
Supplies ~2,500 independent stores including
~1,270 IGA branded stores and ~745 FoodWorks
stores
Supported by 11 Fresh DC’s delivering fresh
produce, meat, bakery and deli products
Marketing and brand building:
Future Direction
3 channels IGA branded independent stores
Implement Project LION strategies
to suit niche markets
(enhance IGA>D and IGA retailer model)
Retail standards, appraisals and marketing
Implement fresh food strategies to grow
programs
wholesale and retail sales
2 distinct private label brands – Black & Gold
Reduce CODB
and IGA Signature
Grow retail area through new stores and
extensions
6
Our Business Pillars
- IGA>D 2009
Future Direction
Grow categories of existing customers
Increase number of customers serviced by national
network
Move to increased farm-gate purchasing
7
Our Business Pillars
- Australian Liquor Marketers (ALM) 2009
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 licensed
premises
~1,600 stores marketed under Independent
Brands Australia’s (IBA) 3 main store brands
– Cellarbrations, IGA Plus Liquor and Bottle-O
Future Direction
Sales and equity growth for major IBA brands
under Cellarbrations, IGA Plus Liquor and
Bottle-O Najda’ Cellarbrations, North Geelong, Victoria
CODB reduction
Working with major suppliers to channel beer
volumes through ALM to maximise beer
distribution and consolidate delivery for
independent stores
Continue to strengthen Liquor Alliance
relationship and look to expand the Thirsty
Camel brand
8
Our Business Pillars
- Campbells Wholesale 2009
Campbells Wholesale
Cash & Carry, Bunbury, Western Australia
Distribution (CWD) - 17 regional
warehouses
10
Why Metcash Succeeds 2009
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2009
CORE COMPETENCIES
- LOGISTICAL EXCELLENCE
- MARKETING & BRAND BUILDING
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Logistical Excellence 2009
13
2009
CORE COMPETENCIES
- LOGISTICAL EXCELLENCE
- MARKETING & BRAND BUILDING
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Marketing and Brand Building
- Independent Grocers of Australia (IGA) 2009
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Marketing and Brand Building
- IGA Stores 3 channels 2009
• Convenience format
stores
• Targeted demographic
range
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Marketing and Brand Building
- Championing Independent Retailers 2009
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”
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Marketing and Brand Building
- Retail Standards & Support 2009
Store Standards
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Marketing and Brand Building
- Retail Development 2009
180
178
160
151
140
137 135
120 126
100 109
103
96
80
67
76 62 62
60 51 54
40 49
27 27
20 11
0 0
0
1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009
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Marketing & Brand Building
- IGA Marketing 2009
“Our vision is to make the IGA brand the single most valuable asset we have”
CONCLUDING REMARKS
22
Concluding Remarks 2009
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Concluding Remarks 2009
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 spending
Inflation has declined from previous highs with price deflation in some Produce categories
However given MTS’s focus on selling consumer essentials, no likely weakening is foreseen in
the markets served by the Group
Capital Management
The Board has undertaken to return high dividends to shareholders in the absence of alternative
uses for such funds (payout ratio >75% for last 3 years)
The Board continues to keep its capital management options under a watching brief
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2009
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2009
Disclaimer
Metcash Limited gives no warranty and expressly disclaims all liability in relation to
the information contained in this presentation. Investors should seek relevant
advice to suit their specific objectives and circumstances.
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