For personal use only - ASX · 2017-03-22 · HARDWARE INVESTOR DAY PRESENTATION Please find attached a presentation regarding Metcash’s Hardware business to be delivered at today’s
30
23 March 2017 Market Announcements Office Australian Securities Exchange Limited 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam HARDWARE INVESTOR DAY PRESENTATION Please find attached a presentation regarding Metcash’s Hardware business to be delivered at today’s Investor Day in Melbourne. Yours faithfully Julie Hutton Company Secretary Metcash Limited ABN 32 112 073 480 1 Thomas Holt Drive Macquarie Park NSW 2113 Australia For personal use only
23 March 2017 Market Announcements Office Australian Securities Exchange Limited 20 Bridge Street Sydney NSW 2000 Dear SirMadam HARDWARE INVESTOR DAY PRESENTATION Please find attached a presentation regarding Metcashrsquos Hardware business to be delivered at todayrsquos Investor Day in Melbourne Yours faithfully
Julie Hutton Company Secretary
Metcash Limited ABN 32 112 073 480 1 Thomas Holt Drive
Macquarie Park NSW 2113 Australia
For
per
sona
l use
onl
y
Investor day ndash 23 March 2017
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per
sona
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2
ContentsPage
1 Metcash ndash network of successful independents 4
2 Independent Hardware Group 5
3 IHG management team 7
4 Hardware market 8
5 IHG network 9
6 Key strategic initiatives 14
7 Integration update 19
8 Summary 27
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Ian MorriceMetcash CEO
Successful Independents
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4
Metcash
FOOD LIQUOR HARDWAREFor
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5
HTH acquisition ndash now second largest in Hardware marketMetcash Hardware HTH Independent
DC Locations Qld Vic WA NSW (2) Vic WA QLD (1) Vic (1) WA (2) NSW (2)
Number of Employees (FTE) ~1000 ~1600 ~2600
~$2bn business with significant scale1 Year ended 30 April 2016 for Metcash Hardware Year ended 30 June 2016 for HTH 2 Stores held through 8 separate joint ventures3 Neither Metcash nor HTH have sole-supply agreements with unbannered stores Combined unbannered network excluding overlap is ~500 stores F
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Business Overview
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7
IHG management team
ANNETTE WELSH
Merchandise
CHRIS TSOTRA
Joint VenturesAlliance
ROBIN JOHNSTON
Commercial
RICK SOLA
Supply Chain amp LogisticsMarketing
DARREN MANNING
Operations Retail amp Trade
STUARTWILLINGHAM
Company Stores
Human Resources
RICHARD BROWN
CEO MARK LAIDLAW
KAREN FAHEY
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IHG ndash second largest player in Hardware market
Acquisition of HTH in October 2016o Now clear 2 in Hardware marketo Strengthened position in Trade segmento HTH and Mitre 10 complementary with limited
store overlap
Opportunity to roll out speciality offers such as plumbing tiling power garden equipment and flooring
Retail offer strengthened through addition of 41 HTH corporate stores to 53 Mitre 10 JV stores
Bunnings has consolidated the retail sector becoming the dominant player The trade market remains fragmented with traditional wholesalers competing against trade focused chains and specialists (eg Reece)
Mitre 10s brand is well positioned across both retail and trade segments of the $238B HI core market
Source Pittney Bowes amp Moore Stephens 2009Estimated Market Share based on internal assumptions
HI market intel Mar17
Competitive landscape
ampZampFampA ampD ampT
Dahlsens
Bowens
HTH Company
Reece
Tradelink
HBT
HTH
Masters
True Value
Small
Store Format
Large
Retail Focus
Trade Focus
Total Tools
Stratco
Landmark
Plumbtec
Thrifty Link
HampG
Swan Plumbing
Beaumont Tiles
Stihl
Mitre 10
M10 JV Stores
Hardings
Hudsons
Natbuild
Porters
By Category - Core
ampZampF
Garden
225
Kitchen amp Bathroom
25499999999999998Hardware
12Plumbing (incl Fashion Tapeware amp Acc)
56Paint
17Tools
22999999999999998Electrical
165Timber amp Building
1075
Total Core HI Sales
By Category
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
Traditionally Mitre10 plays in the $28bn market dominated by two distinct consumer types Retail (DIY) and Trade The Trade Market is highly fragmented with un-bannered independents garnering 59
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade The Trade market is highly fragmented with unbannered independents amp specialists garnering 78 of the market
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
Other
61149
64
2234799
35
4722
67
2415
79
Sheet2
Sheet3
Sheet1
Growth Opportunity
Sheet4
HI as a picture
Sheet6
Sheet5
image1emf
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9
IHG brands
Key customers stores IHG sales
Iconic independent and local network Operates in both Trade and DIY segments Customers include national residential builders through to local handy-man 306 47
Strong focus on Trade segment and home builders Mix of independently owned and company-owned stores Customers include national residential builders through to local handy-man 246 37
ldquoYour local hardware storerdquo National hardware chain with small format stores Services metro and regional communities 126 2
ldquoMaking hardware easyrdquo National hardware chain with small format stores Services metro and regional communities across Australia 67 1
Supplier of quality lsquofront of wallrsquo plumbing (bathrooms kitchens appliances) 6 outlets across Melbourne Brisbane Adelaide and surrounding areas Customer base gt90 trade 5 5
~500 unbannered stores contribute ~8 of total sales
Brands
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10
An extensive national footprint
StateMitre
10stores
HTHstores
Totalstores DCs
NSW 81 104 185 2
QLD 113 68 181 1
SA NT 60 37 97
TAS 14 14 28
VIC 71 103 174 1
WA 34 51 85 2
TOTAL 373 377 750 6
HTH store footprint is complementary to Mitre 10 ndash limited overlap
DCs will reduce from 7 to 6 (South Dandenong to close) ndash delivers synergy benefits
Currently 2 South Dandenong DC to be closed in April
1
2
113
81
71
34
14
60
14
51
37
68 1
104 2
103
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679
71
Independent Majority owned or Company-owned
IHG committed to ldquoSuccessful Independentsrdquo
750 bannered stores Successful Independents is key focus Independent store owners gt90 of IHG
network Company-owned stores are an important
component of the Hardware business 53 Mitre 10 JV stores (30 majority owned) 41 Company-owned stores added through
HTH acquisition supported by a strong and experienced management team Hardware offer extended through addition of
stores such as Hardings Hardware and TaitTimber Location of Independent and Company-
owned stores are complementary with minimal conflict sites F
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12
~60~40
IHG
Trade Retail
Strengthened position in Trade segment
Proportion of Trade sales increased from ~55 to ~60 through HTH acquisition
Attractive service offer ldquoGet in get out get on with itrdquo and ldquoGo where the Tradies gordquo
Focus on delivering what Tradies wanto Low cost and transparento Rapid response from order to delivery (DIFOT)o Timber undercovero Relationship at all touch pointso Trade drive through and separate Trade desko Early opening clean facilities coffeeo Investment in technology to improve efficiency
~55~45
Mitre 10
~62~38
HTH
Sales mix
Based on sales for year ended 30 April 2016 for Metcash Hardware and 30 June 2016 for HTH For
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Consumer led strategy
SHOPPER LED RANGE amp COMPETITIVE PRICING
BUILD TRADE
DIGITALDATA INSIGHTS
WORKING SMARTER
BEST STORE IN TOWN
SAPPHIRE PROGRAM
Good progress across all Mitre 10 stores
HTH opportunities identified
Combined the best of both to make a better businessFor
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Annette WelshGM ndash Merchandise
Key strategic initiatives
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15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
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16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
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17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
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18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
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Mark LaidlawCEO Independent Hardware Group
Integration update
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20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
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nal u
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21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
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22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
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nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
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nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
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sona
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25
Marketing ndash HTHF
or p
erso
nal u
se o
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26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
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28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
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nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
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FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
15
16
17
18
18
19
63
684768
741389754
7999159334
81511433614
87674603678
42
42798
43611162
44439774078
452841297855
461445282514
1019
1019
1019
1019
1019
FY12
FY13
FY14
FY15
FY16
FY17
Hardware
Home Improvement
Large Big Box
Small to Medium
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
46 stores x25M
16 Trade
6 of overall biz
36 stores x 10m
Updated Aug 2016
Market Share Calculation
Market Share Calculation
Market Share Calculation
Source CLSA 5814
Source CLSA 5814
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Wesfarmers
Wesfarmers
Bunnings
6078
245
Bunnings
1232
479
Bunnings
7310
145
Blackwoods
0
000
Blackwoods
50
019
Blackwoods
50
01
Bunnings
6078
2450
Bunnings
1282
499
Bunnings
7360
146
Woolworths
Woolworths
Woolworths
Masters
723
291
Masters
38
015
Masters
761
15
Home Timber amp Hardware
381
154
Home Timber amp Hardware
381
148
Home Timber amp Hardware
762
15
company owned
69
028
company owned
305
119
company owned
374
07
Gunns
10
004
Gunns
59
023
Gunns
69
01
Becks
12
005
Becks
36
014
Becks
48
01
Magnet Mart
24
010
Magnet Mart
36
014
Magnet Mart
60
01
Flatmans
4
002
Flatmans
21
008
Flatmans
25
00
Taits
5
002
Taits
49
019
Taits
54
01
Mittagong
3
001
Mittagong
23
009
Mittagong
26
01
Hardings
11
004
Hardings
61
024
Hardings
72
01
FAW Building
0
000
FAW Building
20
008
FAW Building
20
00
wholesale customers
480
193
wholesale customers
116
045
wholesale customers
596
12
Woolworths Other
618
249
Woolworths Other
726
283
Woolworths Other
1344
27
Metcash
Metcash
Metcash
Mitre 10 branded outlets
690
278
Mitre 10 branded outlets
810
315
Mitre 10 branded outlets
1500
30
Mitre 10 supplied independents
210
085
Mitre 10 supplied independents
90
035
Mitre 10 supplied independents
300
06
Mitre10
900
363
Mitre10
900
350
Mitre10
1800
36
Specialist Plumbing
274
110
Specialist Plumbing
2284
889
Specialist Plumbing
2558
506
Reece
219
088
Reece
1239
482
Reece
1458
29
Tradelink
55
022
Tradelink
1045
407
Tradelink
1100
22
Specialist Paint
255
103
Specialist Paint
1021
397
Specialist Paint
1276
25
Dulux
22
009
Dulux
89
035
Dulux
111
02
Inspirations
73
029
Inspirations
292
114
Inspirations
365
07
Paint Place
60
024
Paint Place
240
093
Paint Place
300
06
Bristol
60
024
Bristol
240
093
Bristol
300
06
Solver Decorator Centre
20
008
Solver Decorator Centre
80
031
Solver Decorator Centre
100
02
Wattyl Trade Paint Centre
20
008
Wattyl Trade Paint Centre
80
031
Wattyl Trade Paint Centre
100
02
Specialist Hardware
142
06
Specialist Hardware
568
22
Specialist Hardware
710
14
Hardware amp Building Traders (HBT)
86
035
Hardware amp Building Traders (HBT)
344
134
Hardware amp Building Traders (HBT)
430
09
Bowens
24
010
Bowens
96
037
Bowens
120
02
Swadling Group
12
005
Swadling Group
48
019
Swadling Group
60
01
Hardware amp General
20
008
Hardware amp General
80
031
Hardware amp General
100
02
Specialist Other
900
36
Specialist Other
627
24
Specialist Other
1527
30
Total Tools
35
014
Total Tools
81
032
Total Tools
116
02
Stratco
100
040
Stratco
100
039
Stratco
200
04
Barbeques Galore
200
081
Barbeques Galore
0
000
Barbeques Galore
200
04
Carpet Call
160
064
Carpet Call
40
016
Carpet Call
200
04
Outdoor Furniture Specialists
70
028
Outdoor Furniture Specialists
0
000
Outdoor Furniture Specialists
70
01
Beacon Lighting
143
058
Beacon Lighting
8
003
Beacon Lighting
151
03
Howards Storage World
90
036
Howards Storage World
0
000
Howards Storage World
90
02
Gyprock Trade
0
000
Gyprock Trade
260
101
Gyprock Trade
260
05
Flower Power
95
038
Flower Power
5
002
Flower Power
100
02
Stegbar
7
003
Stegbar
133
052
Stegbar
140
03
Big Box Other
626
25
Big Box Other
2145
83
Big Box Other
2771
55
IKEA
233
094
IKEA
0
000
IKEA
233
05
Supermarkets
152
061
Supermarkets
0
000
Supermarkets
152
03
Discount department stores
241
097
Discount department stores
0
000
Discount department stores
241
05
Direct delivery from supplier
0
000
Direct delivery from supplier
2145
835
Direct delivery from supplier
2145
42
Other
13094
5278
Other
11782
4585
Other
24876
493
Grand Total
24810
10000
Grand Total
25696
10000
Grand Total
50506
1000
23922
21449
45371
888
4247
5135
Other (original)
13644
5499
Other (original)
12203
4749
Other (original)
25847
512
Adjustment
-550
Adjustment
-421
Adjustment
-971
net
13094
net
11782
net
24876
Bunnings
Masters
Home Timber amp Hardware
Woolworths Other
Mitre10
Specialist Plumbing
Specialist Paint
Specialist Hardware
Specialist Other
Big Box Other
Other
Market Share Calculation
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Bunnings
6078
254
1232
574
7310
161
Blackwoods
0
000
50
023
50
01
6078
2541
1282
598
7360
162
Woolworths
Masters
723
302
38
018
761
17
Home Timber amp Hardware
381
159
381
178
762
17
company owned
69
029
305
142
374
08
Gunns
10
004
59
028
69
02
Becks
12
005
36
017
48
01
Magnet Mart
24
010
36
017
60
01
Flatmans
4
002
21
010
25
01
Taits
5
002
49
023
54
01
Mittagong
3
001
23
011
26
01
Hardings
11
005
61
028
72
02
FAW Building
0
000
20
009
20
00
wholesale customers
480
201
116
054
596
13
1653
691
840
392
2493
55
Metcash
Mitre 10 branded outlets
690
288
810
378
1500
33
Mitre 10 supplied independents
210
088
90
042
300
07
900
376
900
420
1800
40
Specialist Plumbing
Reece
219
092
1239
578
1458
32
Tradelink
55
023
1045
487
1100
24
Specialist Paint
Dulux
22
009
89
041
111
02
Inspirations
73
031
292
136
365
08
Paint Place
60
025
240
112
300
07
Bristol
60
025
240
112
300
07
Solver Decorator Centre
20
008
80
037
100
02
Wattyl Trade Paint Centre
20
008
80
037
100
02
Specialist Hardware
Hardware amp Building Traders (HBT)
86
036
344
160
430
09
Bowens
24
010
96
045
120
03
Swadling Group
12
005
48
022
60
01
Hardware amp General
20
008
80
037
100
02
Specialist Other
Total Tools
35
015
81
038
116
03
Stratco
100
042
100
047
200
04
Barbeques Galore
200
084
0
000
200
04
Carpet Call
160
067
40
019
200
04
Outdoor Furniture Specialists
70
029
0
000
70
02
Beacon Lighting
143
060
8
004
151
03
Howards Storage World
90
038
0
000
90
02
Gyprock Trade
0
000
260
121
260
06
Flower Power
95
040
5
002
100
02
Stegbar
7
003
133
062
140
03
Big Box Other
IKEA
233
097
0
000
233
05
Supermarkets
152
064
0
000
152
03
Discount department stores
241
101
0
000
241
05
Direct delivery from supplier
0
000
2145
1000
2145
47
Other
13094
5474
11782
5493
24876
548
Grand Total
23922
10000
21449
10000
45371
1000
23922
21449
45371
- 0
- 0
- 0
Other (original)
13644
5704
12203
5689
25847
570
Adjustment
-550
-421
-971
net
13094
11782
24876
Original
Current
42000
8600
10800
4400
4700
12200
42000
8600
10800
4400
4700
12200
Aus
Retail
Trade
Plumbing
White goods
Consumer
Aus
Retail
Trade
Plumbing
White goods
Consumer
Retail
Trade
Plumbing
White goods
Consumer
Bunnings
6490
4280
1000
280
80
850
7360
6078
1282
4854
1134
318
91
964
- 0
Mitre10
1720
880
550
60
30
200
1800
900
900
921
576
63
31
209
Reece
1500
1500
1458
219
1239
- 0
- 0
1458
- 0
- 0
Lawerence amp Hanson
1000
200
800
- 0
- 0
- 0
- 0
- 0
- 0
Tradelink
900
900
1100
55
1045
- 0
- 0
1100
- 0
- 0
DanksMasters
850
380
280
60
30
100
1523
1104
419
681
502
108
54
179
Harvey Norman
800
750
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbtec
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Good Guys
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Middys
500
100
400
- 0
- 0
- 0
- 0
- 0
- 0
Dahlsens
430
80
300
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbing Plus
400
400
- 0
- 0
- 0
- 0
- 0
- 0
BBQ Galore
250
250
200
- 0
200
- 0
- 0
- 0
- 0
200
Betta
250
250
- 0
- 0
- 0
- 0
- 0
- 0
Bowens
250
50
200
- 0
- 0
- 0
- 0
- 0
- 0
Total Tools
200
200
- 0
- 0
- 0
- 0
- 0
- 0
Paint Right
200
70
130
- 0
- 0
- 0
- 0
- 0
- 0
Beacon Lighting
200
150
50
- 0
- 0
- 0
- 0
- 0
- 0
Paint Place
150
50
100
- 0
- 0
- 0
- 0
- 0
- 0
Flower Power
150
150
- 0
- 0
- 0
- 0
- 0
- 0
Banner
90
20
70
- 0
- 0
- 0
- 0
- 0
- 0
Straco
80
80
- 0
- 0
- 0
- 0
- 0
- 0
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
HTH - FEB16
HTH - FEB17
Trade
Trade
Retail
Trade
HTH Indep
7500
510
3825
3675
51
HTH Co Owned
4500
800
3600
900
80
00
12000
62
7425
4575
62
M10 - FEB16
M10 - FEB17
Trade
Trade
Retail
Trade
M10 wholes
9750
570
5558
4193
57
00
9750
5558
4193
57
CORE HOME Improvement
Overall
Retail
Ret
Trade
Trade
Tot
Tot
Tot
Bunnings
780
68
170
10
950
34
180
18 ($95b)
Masters
078
7
030
2
108
4
40
4 ($11b)
HTH
046
4
074
4
120
4
40
4 ($12b)
M10
088
8
090
5
178
6
40
4 ($18b)
Reece
025
2
180
11
205
7
32
3 ($21b)
Tradelink
007
1
070
4
077
3
24
2 ($08b)
Dahlsens
040
2
040
1
05
1 ($04b)
Plumbtec
050
3
050
2
05
1 ($05b)
0
0
0
00
0 ($00b)
Other
130
11
970
58
1100
39
634
63 ($110b)
1154
100
1674
100
2828
100
1000
115b
18
167b
283b
56
1472
1472 ($283bb)
28b
74
Waterfall data input
Invisible
Final
Minus
Plus
Base
Retail
115
Trade
115
167
Core HI
283
Extended HI
283
1315
132b
Whitegoods
414
485
49b
Total Market
463
463b
Chart Data
Sales amp EBIT (from annual report)
HW Market
HW Retail
Core $M
FY15
FY14
FY13
Market share
Enter Sales
market
Chart
SALES
GROWTH
EBIT
EBIT
SALES
GROWTH
EBIT
EBIT
SALES
EBIT
EBIT
Retail
Entry
Garden
23
Core
90
20
Timber amp Building
10750
108
Kitchen amp Bathroom
26
Core
90
23
Dahlsens
350
33
350M
Hardware
12
Core
60
07
Bowen
250
23
250M
Plumbing (incl Fashion Tapeware amp Acc)
56
Core
25
14
Banner
70
07
70M
Paint
17
Core
60
10
Stratco
70
07
70M
Tools
23
Core
55
13
Other
10010
1
10010M
Electrical
17
Core
55
09
Electrical
1650
17
Timber amp Building
108
Core
0
00
Lawrence and hansen
925
561
925M
Core
280
96
Beacon
179
108
179M
179
Washing Machine amp Dryers
24
Whitegoods
24
Middys
500
303
500M
Fridges Freezer amp Dishwashers
26
Whitegoods
26
Other
46
28
46M
Whitegoods
50
50
Tools
2300
23
Other
27
Extended
27
Total Tools
130
57
130M
Camping Equip amp Storage
12
Extended
12
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
57
130M
128
Home Decor amp Craft
19
Extended
19
Other
2040
887
2040M
Small Appliances
24
Extended
24
Paint
1700
17
Flooring amp Covers
26
Extended
26
Paint Right Ash 61 stores
140
82
140M
BBQ amp Outdoor Furniture
10
Extended
10
Paint Place Ash 115stores
350
206
350M
Kitchen Appliances
13
Extended
13
Other Ash Paint place - 115 locations aust wide
1210
712
1210M
Extended
131
131
Plumbing
5600
56
461
277
Reece
2085
372 Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
2085M
2085
175
1775
Tradelink
1200
214
1200M
1200 Ash FY15 sales drop of 11 on Fy14
Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
Ash 61 stores
Ash 115stores
Ash Paint place - 115 locations aust wide
Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
To compile the list IBISWorld gathered data through primary research ASIC-lodged company reports and its own appraisals of company revenue based on historic data and industry analysis
Read more httpwwwafrcomleadershipbrw-liststop-500-private-companiesafr-top-500-private-companies-20160828-gr2zytixzz4acFaFxWv
Source - DGC Advisory Market report - AUG16
Corp amp independent Specialists
56
Chart Data
Bunnings
22
Core $M
Mitre10
4
Market share
Enter Sales
Reece
4
Natbuild
3
Timber amp Building
10936
masters
3
Dahlsens
322
Lawrence amp Hanson
3
Hardware amp General
122
Home timber
2
Bowen
342
Tradelink
2
Banner
70
HBT
1
Stratco
70
Dahlsens
Other
10010
Plumbtec
Electrical
1650
online hardware retailers
Lawrence and hansen
925
Samios plumbing
Beacon
179
Middys
500
Other
46
Tools
2300
Total Tools
130
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
Other
2040
Paint
1700
Paint Right Ash 61 stores
140
Paint Place Ash 115stores
350
Other Ash Paint place - 115 locations aust wide
1210
Plumbing
5743
Reece
2085
Tradelink
1200
Plumbtec
500
Plumbers Supplies Co Op
143
Other
1815
Kitchen amp Bathroom
2550
Impala
Kitset
Other
2550
Garden
2250
Flower Power
70
Other
2180
Hardware
1200
Other
1200
Hardware amp General
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
Investor day ndash 23 March 2017
For
per
sona
l use
onl
y
2
ContentsPage
1 Metcash ndash network of successful independents 4
2 Independent Hardware Group 5
3 IHG management team 7
4 Hardware market 8
5 IHG network 9
6 Key strategic initiatives 14
7 Integration update 19
8 Summary 27
For
per
sona
l use
onl
y
Ian MorriceMetcash CEO
Successful Independents
For
per
sona
l use
onl
y
4
Metcash
FOOD LIQUOR HARDWAREFor
per
sona
l use
onl
y
5
HTH acquisition ndash now second largest in Hardware marketMetcash Hardware HTH Independent
DC Locations Qld Vic WA NSW (2) Vic WA QLD (1) Vic (1) WA (2) NSW (2)
Number of Employees (FTE) ~1000 ~1600 ~2600
~$2bn business with significant scale1 Year ended 30 April 2016 for Metcash Hardware Year ended 30 June 2016 for HTH 2 Stores held through 8 separate joint ventures3 Neither Metcash nor HTH have sole-supply agreements with unbannered stores Combined unbannered network excluding overlap is ~500 stores F
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Business Overview
For
per
sona
l use
onl
y
7
IHG management team
ANNETTE WELSH
Merchandise
CHRIS TSOTRA
Joint VenturesAlliance
ROBIN JOHNSTON
Commercial
RICK SOLA
Supply Chain amp LogisticsMarketing
DARREN MANNING
Operations Retail amp Trade
STUARTWILLINGHAM
Company Stores
Human Resources
RICHARD BROWN
CEO MARK LAIDLAW
KAREN FAHEY
For
per
sona
l use
onl
y
8
IHG ndash second largest player in Hardware market
Acquisition of HTH in October 2016o Now clear 2 in Hardware marketo Strengthened position in Trade segmento HTH and Mitre 10 complementary with limited
store overlap
Opportunity to roll out speciality offers such as plumbing tiling power garden equipment and flooring
Retail offer strengthened through addition of 41 HTH corporate stores to 53 Mitre 10 JV stores
Bunnings has consolidated the retail sector becoming the dominant player The trade market remains fragmented with traditional wholesalers competing against trade focused chains and specialists (eg Reece)
Mitre 10s brand is well positioned across both retail and trade segments of the $238B HI core market
Source Pittney Bowes amp Moore Stephens 2009Estimated Market Share based on internal assumptions
HI market intel Mar17
Competitive landscape
ampZampFampA ampD ampT
Dahlsens
Bowens
HTH Company
Reece
Tradelink
HBT
HTH
Masters
True Value
Small
Store Format
Large
Retail Focus
Trade Focus
Total Tools
Stratco
Landmark
Plumbtec
Thrifty Link
HampG
Swan Plumbing
Beaumont Tiles
Stihl
Mitre 10
M10 JV Stores
Hardings
Hudsons
Natbuild
Porters
By Category - Core
ampZampF
Garden
225
Kitchen amp Bathroom
25499999999999998Hardware
12Plumbing (incl Fashion Tapeware amp Acc)
56Paint
17Tools
22999999999999998Electrical
165Timber amp Building
1075
Total Core HI Sales
By Category
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
Traditionally Mitre10 plays in the $28bn market dominated by two distinct consumer types Retail (DIY) and Trade The Trade Market is highly fragmented with un-bannered independents garnering 59
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade The Trade market is highly fragmented with unbannered independents amp specialists garnering 78 of the market
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
Other
61149
64
2234799
35
4722
67
2415
79
Sheet2
Sheet3
Sheet1
Growth Opportunity
Sheet4
HI as a picture
Sheet6
Sheet5
image1emf
image2png
image3png
image4jpeg
image5jpeg
image6png
image15jpeg
image16jpeg
image17jpeg
image18jpeg
image19jpeg
image20jpeg
image21jpeg
image22jpeg
image23jpeg
image7gif
image8jpeg
image9jpeg
image10png
image11jpeg
image12gif
image13jpeg
image14jpeg
image28jpeg
image29jpeg
image30jpeg
image24png
image25jpeg
image26jpeg
image27jpeg
image31png
image32jpeg
image33png
image34png
image35jpeg
image36png
image37png
image38png
9
IHG brands
Key customers stores IHG sales
Iconic independent and local network Operates in both Trade and DIY segments Customers include national residential builders through to local handy-man 306 47
Strong focus on Trade segment and home builders Mix of independently owned and company-owned stores Customers include national residential builders through to local handy-man 246 37
ldquoYour local hardware storerdquo National hardware chain with small format stores Services metro and regional communities 126 2
ldquoMaking hardware easyrdquo National hardware chain with small format stores Services metro and regional communities across Australia 67 1
Supplier of quality lsquofront of wallrsquo plumbing (bathrooms kitchens appliances) 6 outlets across Melbourne Brisbane Adelaide and surrounding areas Customer base gt90 trade 5 5
~500 unbannered stores contribute ~8 of total sales
Brands
For
per
sona
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onl
y
10
An extensive national footprint
StateMitre
10stores
HTHstores
Totalstores DCs
NSW 81 104 185 2
QLD 113 68 181 1
SA NT 60 37 97
TAS 14 14 28
VIC 71 103 174 1
WA 34 51 85 2
TOTAL 373 377 750 6
HTH store footprint is complementary to Mitre 10 ndash limited overlap
DCs will reduce from 7 to 6 (South Dandenong to close) ndash delivers synergy benefits
Currently 2 South Dandenong DC to be closed in April
1
2
113
81
71
34
14
60
14
51
37
68 1
104 2
103
For
per
sona
l use
onl
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11
679
71
Independent Majority owned or Company-owned
IHG committed to ldquoSuccessful Independentsrdquo
750 bannered stores Successful Independents is key focus Independent store owners gt90 of IHG
network Company-owned stores are an important
component of the Hardware business 53 Mitre 10 JV stores (30 majority owned) 41 Company-owned stores added through
HTH acquisition supported by a strong and experienced management team Hardware offer extended through addition of
stores such as Hardings Hardware and TaitTimber Location of Independent and Company-
owned stores are complementary with minimal conflict sites F
or p
erso
nal u
se o
nly
12
~60~40
IHG
Trade Retail
Strengthened position in Trade segment
Proportion of Trade sales increased from ~55 to ~60 through HTH acquisition
Attractive service offer ldquoGet in get out get on with itrdquo and ldquoGo where the Tradies gordquo
Focus on delivering what Tradies wanto Low cost and transparento Rapid response from order to delivery (DIFOT)o Timber undercovero Relationship at all touch pointso Trade drive through and separate Trade desko Early opening clean facilities coffeeo Investment in technology to improve efficiency
~55~45
Mitre 10
~62~38
HTH
Sales mix
Based on sales for year ended 30 April 2016 for Metcash Hardware and 30 June 2016 for HTH For
per
sona
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13
Consumer led strategy
SHOPPER LED RANGE amp COMPETITIVE PRICING
BUILD TRADE
DIGITALDATA INSIGHTS
WORKING SMARTER
BEST STORE IN TOWN
SAPPHIRE PROGRAM
Good progress across all Mitre 10 stores
HTH opportunities identified
Combined the best of both to make a better businessFor
per
sona
l use
onl
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Annette WelshGM ndash Merchandise
Key strategic initiatives
For
per
sona
l use
onl
y
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
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16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
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17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
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18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
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Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
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20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
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onl
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22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
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25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
15
16
17
18
18
19
63
684768
741389754
7999159334
81511433614
87674603678
42
42798
43611162
44439774078
452841297855
461445282514
1019
1019
1019
1019
1019
FY12
FY13
FY14
FY15
FY16
FY17
Hardware
Home Improvement
Large Big Box
Small to Medium
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
46 stores x25M
16 Trade
6 of overall biz
36 stores x 10m
Updated Aug 2016
Market Share Calculation
Market Share Calculation
Market Share Calculation
Source CLSA 5814
Source CLSA 5814
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Wesfarmers
Wesfarmers
Bunnings
6078
245
Bunnings
1232
479
Bunnings
7310
145
Blackwoods
0
000
Blackwoods
50
019
Blackwoods
50
01
Bunnings
6078
2450
Bunnings
1282
499
Bunnings
7360
146
Woolworths
Woolworths
Woolworths
Masters
723
291
Masters
38
015
Masters
761
15
Home Timber amp Hardware
381
154
Home Timber amp Hardware
381
148
Home Timber amp Hardware
762
15
company owned
69
028
company owned
305
119
company owned
374
07
Gunns
10
004
Gunns
59
023
Gunns
69
01
Becks
12
005
Becks
36
014
Becks
48
01
Magnet Mart
24
010
Magnet Mart
36
014
Magnet Mart
60
01
Flatmans
4
002
Flatmans
21
008
Flatmans
25
00
Taits
5
002
Taits
49
019
Taits
54
01
Mittagong
3
001
Mittagong
23
009
Mittagong
26
01
Hardings
11
004
Hardings
61
024
Hardings
72
01
FAW Building
0
000
FAW Building
20
008
FAW Building
20
00
wholesale customers
480
193
wholesale customers
116
045
wholesale customers
596
12
Woolworths Other
618
249
Woolworths Other
726
283
Woolworths Other
1344
27
Metcash
Metcash
Metcash
Mitre 10 branded outlets
690
278
Mitre 10 branded outlets
810
315
Mitre 10 branded outlets
1500
30
Mitre 10 supplied independents
210
085
Mitre 10 supplied independents
90
035
Mitre 10 supplied independents
300
06
Mitre10
900
363
Mitre10
900
350
Mitre10
1800
36
Specialist Plumbing
274
110
Specialist Plumbing
2284
889
Specialist Plumbing
2558
506
Reece
219
088
Reece
1239
482
Reece
1458
29
Tradelink
55
022
Tradelink
1045
407
Tradelink
1100
22
Specialist Paint
255
103
Specialist Paint
1021
397
Specialist Paint
1276
25
Dulux
22
009
Dulux
89
035
Dulux
111
02
Inspirations
73
029
Inspirations
292
114
Inspirations
365
07
Paint Place
60
024
Paint Place
240
093
Paint Place
300
06
Bristol
60
024
Bristol
240
093
Bristol
300
06
Solver Decorator Centre
20
008
Solver Decorator Centre
80
031
Solver Decorator Centre
100
02
Wattyl Trade Paint Centre
20
008
Wattyl Trade Paint Centre
80
031
Wattyl Trade Paint Centre
100
02
Specialist Hardware
142
06
Specialist Hardware
568
22
Specialist Hardware
710
14
Hardware amp Building Traders (HBT)
86
035
Hardware amp Building Traders (HBT)
344
134
Hardware amp Building Traders (HBT)
430
09
Bowens
24
010
Bowens
96
037
Bowens
120
02
Swadling Group
12
005
Swadling Group
48
019
Swadling Group
60
01
Hardware amp General
20
008
Hardware amp General
80
031
Hardware amp General
100
02
Specialist Other
900
36
Specialist Other
627
24
Specialist Other
1527
30
Total Tools
35
014
Total Tools
81
032
Total Tools
116
02
Stratco
100
040
Stratco
100
039
Stratco
200
04
Barbeques Galore
200
081
Barbeques Galore
0
000
Barbeques Galore
200
04
Carpet Call
160
064
Carpet Call
40
016
Carpet Call
200
04
Outdoor Furniture Specialists
70
028
Outdoor Furniture Specialists
0
000
Outdoor Furniture Specialists
70
01
Beacon Lighting
143
058
Beacon Lighting
8
003
Beacon Lighting
151
03
Howards Storage World
90
036
Howards Storage World
0
000
Howards Storage World
90
02
Gyprock Trade
0
000
Gyprock Trade
260
101
Gyprock Trade
260
05
Flower Power
95
038
Flower Power
5
002
Flower Power
100
02
Stegbar
7
003
Stegbar
133
052
Stegbar
140
03
Big Box Other
626
25
Big Box Other
2145
83
Big Box Other
2771
55
IKEA
233
094
IKEA
0
000
IKEA
233
05
Supermarkets
152
061
Supermarkets
0
000
Supermarkets
152
03
Discount department stores
241
097
Discount department stores
0
000
Discount department stores
241
05
Direct delivery from supplier
0
000
Direct delivery from supplier
2145
835
Direct delivery from supplier
2145
42
Other
13094
5278
Other
11782
4585
Other
24876
493
Grand Total
24810
10000
Grand Total
25696
10000
Grand Total
50506
1000
23922
21449
45371
888
4247
5135
Other (original)
13644
5499
Other (original)
12203
4749
Other (original)
25847
512
Adjustment
-550
Adjustment
-421
Adjustment
-971
net
13094
net
11782
net
24876
Bunnings
Masters
Home Timber amp Hardware
Woolworths Other
Mitre10
Specialist Plumbing
Specialist Paint
Specialist Hardware
Specialist Other
Big Box Other
Other
Market Share Calculation
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Bunnings
6078
254
1232
574
7310
161
Blackwoods
0
000
50
023
50
01
6078
2541
1282
598
7360
162
Woolworths
Masters
723
302
38
018
761
17
Home Timber amp Hardware
381
159
381
178
762
17
company owned
69
029
305
142
374
08
Gunns
10
004
59
028
69
02
Becks
12
005
36
017
48
01
Magnet Mart
24
010
36
017
60
01
Flatmans
4
002
21
010
25
01
Taits
5
002
49
023
54
01
Mittagong
3
001
23
011
26
01
Hardings
11
005
61
028
72
02
FAW Building
0
000
20
009
20
00
wholesale customers
480
201
116
054
596
13
1653
691
840
392
2493
55
Metcash
Mitre 10 branded outlets
690
288
810
378
1500
33
Mitre 10 supplied independents
210
088
90
042
300
07
900
376
900
420
1800
40
Specialist Plumbing
Reece
219
092
1239
578
1458
32
Tradelink
55
023
1045
487
1100
24
Specialist Paint
Dulux
22
009
89
041
111
02
Inspirations
73
031
292
136
365
08
Paint Place
60
025
240
112
300
07
Bristol
60
025
240
112
300
07
Solver Decorator Centre
20
008
80
037
100
02
Wattyl Trade Paint Centre
20
008
80
037
100
02
Specialist Hardware
Hardware amp Building Traders (HBT)
86
036
344
160
430
09
Bowens
24
010
96
045
120
03
Swadling Group
12
005
48
022
60
01
Hardware amp General
20
008
80
037
100
02
Specialist Other
Total Tools
35
015
81
038
116
03
Stratco
100
042
100
047
200
04
Barbeques Galore
200
084
0
000
200
04
Carpet Call
160
067
40
019
200
04
Outdoor Furniture Specialists
70
029
0
000
70
02
Beacon Lighting
143
060
8
004
151
03
Howards Storage World
90
038
0
000
90
02
Gyprock Trade
0
000
260
121
260
06
Flower Power
95
040
5
002
100
02
Stegbar
7
003
133
062
140
03
Big Box Other
IKEA
233
097
0
000
233
05
Supermarkets
152
064
0
000
152
03
Discount department stores
241
101
0
000
241
05
Direct delivery from supplier
0
000
2145
1000
2145
47
Other
13094
5474
11782
5493
24876
548
Grand Total
23922
10000
21449
10000
45371
1000
23922
21449
45371
- 0
- 0
- 0
Other (original)
13644
5704
12203
5689
25847
570
Adjustment
-550
-421
-971
net
13094
11782
24876
Original
Current
42000
8600
10800
4400
4700
12200
42000
8600
10800
4400
4700
12200
Aus
Retail
Trade
Plumbing
White goods
Consumer
Aus
Retail
Trade
Plumbing
White goods
Consumer
Retail
Trade
Plumbing
White goods
Consumer
Bunnings
6490
4280
1000
280
80
850
7360
6078
1282
4854
1134
318
91
964
- 0
Mitre10
1720
880
550
60
30
200
1800
900
900
921
576
63
31
209
Reece
1500
1500
1458
219
1239
- 0
- 0
1458
- 0
- 0
Lawerence amp Hanson
1000
200
800
- 0
- 0
- 0
- 0
- 0
- 0
Tradelink
900
900
1100
55
1045
- 0
- 0
1100
- 0
- 0
DanksMasters
850
380
280
60
30
100
1523
1104
419
681
502
108
54
179
Harvey Norman
800
750
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbtec
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Good Guys
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Middys
500
100
400
- 0
- 0
- 0
- 0
- 0
- 0
Dahlsens
430
80
300
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbing Plus
400
400
- 0
- 0
- 0
- 0
- 0
- 0
BBQ Galore
250
250
200
- 0
200
- 0
- 0
- 0
- 0
200
Betta
250
250
- 0
- 0
- 0
- 0
- 0
- 0
Bowens
250
50
200
- 0
- 0
- 0
- 0
- 0
- 0
Total Tools
200
200
- 0
- 0
- 0
- 0
- 0
- 0
Paint Right
200
70
130
- 0
- 0
- 0
- 0
- 0
- 0
Beacon Lighting
200
150
50
- 0
- 0
- 0
- 0
- 0
- 0
Paint Place
150
50
100
- 0
- 0
- 0
- 0
- 0
- 0
Flower Power
150
150
- 0
- 0
- 0
- 0
- 0
- 0
Banner
90
20
70
- 0
- 0
- 0
- 0
- 0
- 0
Straco
80
80
- 0
- 0
- 0
- 0
- 0
- 0
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
HTH - FEB16
HTH - FEB17
Trade
Trade
Retail
Trade
HTH Indep
7500
510
3825
3675
51
HTH Co Owned
4500
800
3600
900
80
00
12000
62
7425
4575
62
M10 - FEB16
M10 - FEB17
Trade
Trade
Retail
Trade
M10 wholes
9750
570
5558
4193
57
00
9750
5558
4193
57
CORE HOME Improvement
Overall
Retail
Ret
Trade
Trade
Tot
Tot
Tot
Bunnings
780
68
170
10
950
34
180
18 ($95b)
Masters
078
7
030
2
108
4
40
4 ($11b)
HTH
046
4
074
4
120
4
40
4 ($12b)
M10
088
8
090
5
178
6
40
4 ($18b)
Reece
025
2
180
11
205
7
32
3 ($21b)
Tradelink
007
1
070
4
077
3
24
2 ($08b)
Dahlsens
040
2
040
1
05
1 ($04b)
Plumbtec
050
3
050
2
05
1 ($05b)
0
0
0
00
0 ($00b)
Other
130
11
970
58
1100
39
634
63 ($110b)
1154
100
1674
100
2828
100
1000
115b
18
167b
283b
56
1472
1472 ($283bb)
28b
74
Waterfall data input
Invisible
Final
Minus
Plus
Base
Retail
115
Trade
115
167
Core HI
283
Extended HI
283
1315
132b
Whitegoods
414
485
49b
Total Market
463
463b
Chart Data
Sales amp EBIT (from annual report)
HW Market
HW Retail
Core $M
FY15
FY14
FY13
Market share
Enter Sales
market
Chart
SALES
GROWTH
EBIT
EBIT
SALES
GROWTH
EBIT
EBIT
SALES
EBIT
EBIT
Retail
Entry
Garden
23
Core
90
20
Timber amp Building
10750
108
Kitchen amp Bathroom
26
Core
90
23
Dahlsens
350
33
350M
Hardware
12
Core
60
07
Bowen
250
23
250M
Plumbing (incl Fashion Tapeware amp Acc)
56
Core
25
14
Banner
70
07
70M
Paint
17
Core
60
10
Stratco
70
07
70M
Tools
23
Core
55
13
Other
10010
1
10010M
Electrical
17
Core
55
09
Electrical
1650
17
Timber amp Building
108
Core
0
00
Lawrence and hansen
925
561
925M
Core
280
96
Beacon
179
108
179M
179
Washing Machine amp Dryers
24
Whitegoods
24
Middys
500
303
500M
Fridges Freezer amp Dishwashers
26
Whitegoods
26
Other
46
28
46M
Whitegoods
50
50
Tools
2300
23
Other
27
Extended
27
Total Tools
130
57
130M
Camping Equip amp Storage
12
Extended
12
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
57
130M
128
Home Decor amp Craft
19
Extended
19
Other
2040
887
2040M
Small Appliances
24
Extended
24
Paint
1700
17
Flooring amp Covers
26
Extended
26
Paint Right Ash 61 stores
140
82
140M
BBQ amp Outdoor Furniture
10
Extended
10
Paint Place Ash 115stores
350
206
350M
Kitchen Appliances
13
Extended
13
Other Ash Paint place - 115 locations aust wide
1210
712
1210M
Extended
131
131
Plumbing
5600
56
461
277
Reece
2085
372 Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
2085M
2085
175
1775
Tradelink
1200
214
1200M
1200 Ash FY15 sales drop of 11 on Fy14
Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
Ash 61 stores
Ash 115stores
Ash Paint place - 115 locations aust wide
Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
To compile the list IBISWorld gathered data through primary research ASIC-lodged company reports and its own appraisals of company revenue based on historic data and industry analysis
Read more httpwwwafrcomleadershipbrw-liststop-500-private-companiesafr-top-500-private-companies-20160828-gr2zytixzz4acFaFxWv
Source - DGC Advisory Market report - AUG16
Corp amp independent Specialists
56
Chart Data
Bunnings
22
Core $M
Mitre10
4
Market share
Enter Sales
Reece
4
Natbuild
3
Timber amp Building
10936
masters
3
Dahlsens
322
Lawrence amp Hanson
3
Hardware amp General
122
Home timber
2
Bowen
342
Tradelink
2
Banner
70
HBT
1
Stratco
70
Dahlsens
Other
10010
Plumbtec
Electrical
1650
online hardware retailers
Lawrence and hansen
925
Samios plumbing
Beacon
179
Middys
500
Other
46
Tools
2300
Total Tools
130
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
Other
2040
Paint
1700
Paint Right Ash 61 stores
140
Paint Place Ash 115stores
350
Other Ash Paint place - 115 locations aust wide
1210
Plumbing
5743
Reece
2085
Tradelink
1200
Plumbtec
500
Plumbers Supplies Co Op
143
Other
1815
Kitchen amp Bathroom
2550
Impala
Kitset
Other
2550
Garden
2250
Flower Power
70
Other
2180
Hardware
1200
Other
1200
Hardware amp General
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
2
ContentsPage
1 Metcash ndash network of successful independents 4
2 Independent Hardware Group 5
3 IHG management team 7
4 Hardware market 8
5 IHG network 9
6 Key strategic initiatives 14
7 Integration update 19
8 Summary 27
For
per
sona
l use
onl
y
Ian MorriceMetcash CEO
Successful Independents
For
per
sona
l use
onl
y
4
Metcash
FOOD LIQUOR HARDWAREFor
per
sona
l use
onl
y
5
HTH acquisition ndash now second largest in Hardware marketMetcash Hardware HTH Independent
DC Locations Qld Vic WA NSW (2) Vic WA QLD (1) Vic (1) WA (2) NSW (2)
Number of Employees (FTE) ~1000 ~1600 ~2600
~$2bn business with significant scale1 Year ended 30 April 2016 for Metcash Hardware Year ended 30 June 2016 for HTH 2 Stores held through 8 separate joint ventures3 Neither Metcash nor HTH have sole-supply agreements with unbannered stores Combined unbannered network excluding overlap is ~500 stores F
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Business Overview
For
per
sona
l use
onl
y
7
IHG management team
ANNETTE WELSH
Merchandise
CHRIS TSOTRA
Joint VenturesAlliance
ROBIN JOHNSTON
Commercial
RICK SOLA
Supply Chain amp LogisticsMarketing
DARREN MANNING
Operations Retail amp Trade
STUARTWILLINGHAM
Company Stores
Human Resources
RICHARD BROWN
CEO MARK LAIDLAW
KAREN FAHEY
For
per
sona
l use
onl
y
8
IHG ndash second largest player in Hardware market
Acquisition of HTH in October 2016o Now clear 2 in Hardware marketo Strengthened position in Trade segmento HTH and Mitre 10 complementary with limited
store overlap
Opportunity to roll out speciality offers such as plumbing tiling power garden equipment and flooring
Retail offer strengthened through addition of 41 HTH corporate stores to 53 Mitre 10 JV stores
Bunnings has consolidated the retail sector becoming the dominant player The trade market remains fragmented with traditional wholesalers competing against trade focused chains and specialists (eg Reece)
Mitre 10s brand is well positioned across both retail and trade segments of the $238B HI core market
Source Pittney Bowes amp Moore Stephens 2009Estimated Market Share based on internal assumptions
HI market intel Mar17
Competitive landscape
ampZampFampA ampD ampT
Dahlsens
Bowens
HTH Company
Reece
Tradelink
HBT
HTH
Masters
True Value
Small
Store Format
Large
Retail Focus
Trade Focus
Total Tools
Stratco
Landmark
Plumbtec
Thrifty Link
HampG
Swan Plumbing
Beaumont Tiles
Stihl
Mitre 10
M10 JV Stores
Hardings
Hudsons
Natbuild
Porters
By Category - Core
ampZampF
Garden
225
Kitchen amp Bathroom
25499999999999998Hardware
12Plumbing (incl Fashion Tapeware amp Acc)
56Paint
17Tools
22999999999999998Electrical
165Timber amp Building
1075
Total Core HI Sales
By Category
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
Traditionally Mitre10 plays in the $28bn market dominated by two distinct consumer types Retail (DIY) and Trade The Trade Market is highly fragmented with un-bannered independents garnering 59
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade The Trade market is highly fragmented with unbannered independents amp specialists garnering 78 of the market
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
Other
61149
64
2234799
35
4722
67
2415
79
Sheet2
Sheet3
Sheet1
Growth Opportunity
Sheet4
HI as a picture
Sheet6
Sheet5
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9
IHG brands
Key customers stores IHG sales
Iconic independent and local network Operates in both Trade and DIY segments Customers include national residential builders through to local handy-man 306 47
Strong focus on Trade segment and home builders Mix of independently owned and company-owned stores Customers include national residential builders through to local handy-man 246 37
ldquoYour local hardware storerdquo National hardware chain with small format stores Services metro and regional communities 126 2
ldquoMaking hardware easyrdquo National hardware chain with small format stores Services metro and regional communities across Australia 67 1
Supplier of quality lsquofront of wallrsquo plumbing (bathrooms kitchens appliances) 6 outlets across Melbourne Brisbane Adelaide and surrounding areas Customer base gt90 trade 5 5
~500 unbannered stores contribute ~8 of total sales
Brands
For
per
sona
l use
onl
y
10
An extensive national footprint
StateMitre
10stores
HTHstores
Totalstores DCs
NSW 81 104 185 2
QLD 113 68 181 1
SA NT 60 37 97
TAS 14 14 28
VIC 71 103 174 1
WA 34 51 85 2
TOTAL 373 377 750 6
HTH store footprint is complementary to Mitre 10 ndash limited overlap
DCs will reduce from 7 to 6 (South Dandenong to close) ndash delivers synergy benefits
Currently 2 South Dandenong DC to be closed in April
1
2
113
81
71
34
14
60
14
51
37
68 1
104 2
103
For
per
sona
l use
onl
y
11
679
71
Independent Majority owned or Company-owned
IHG committed to ldquoSuccessful Independentsrdquo
750 bannered stores Successful Independents is key focus Independent store owners gt90 of IHG
network Company-owned stores are an important
component of the Hardware business 53 Mitre 10 JV stores (30 majority owned) 41 Company-owned stores added through
HTH acquisition supported by a strong and experienced management team Hardware offer extended through addition of
stores such as Hardings Hardware and TaitTimber Location of Independent and Company-
owned stores are complementary with minimal conflict sites F
or p
erso
nal u
se o
nly
12
~60~40
IHG
Trade Retail
Strengthened position in Trade segment
Proportion of Trade sales increased from ~55 to ~60 through HTH acquisition
Attractive service offer ldquoGet in get out get on with itrdquo and ldquoGo where the Tradies gordquo
Focus on delivering what Tradies wanto Low cost and transparento Rapid response from order to delivery (DIFOT)o Timber undercovero Relationship at all touch pointso Trade drive through and separate Trade desko Early opening clean facilities coffeeo Investment in technology to improve efficiency
~55~45
Mitre 10
~62~38
HTH
Sales mix
Based on sales for year ended 30 April 2016 for Metcash Hardware and 30 June 2016 for HTH For
per
sona
l use
onl
y
13
Consumer led strategy
SHOPPER LED RANGE amp COMPETITIVE PRICING
BUILD TRADE
DIGITALDATA INSIGHTS
WORKING SMARTER
BEST STORE IN TOWN
SAPPHIRE PROGRAM
Good progress across all Mitre 10 stores
HTH opportunities identified
Combined the best of both to make a better businessFor
per
sona
l use
onl
y
Annette WelshGM ndash Merchandise
Key strategic initiatives
For
per
sona
l use
onl
y
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
l use
onl
y
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
15
16
17
18
18
19
63
684768
741389754
7999159334
81511433614
87674603678
42
42798
43611162
44439774078
452841297855
461445282514
1019
1019
1019
1019
1019
FY12
FY13
FY14
FY15
FY16
FY17
Hardware
Home Improvement
Large Big Box
Small to Medium
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
46 stores x25M
16 Trade
6 of overall biz
36 stores x 10m
Updated Aug 2016
Market Share Calculation
Market Share Calculation
Market Share Calculation
Source CLSA 5814
Source CLSA 5814
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Wesfarmers
Wesfarmers
Bunnings
6078
245
Bunnings
1232
479
Bunnings
7310
145
Blackwoods
0
000
Blackwoods
50
019
Blackwoods
50
01
Bunnings
6078
2450
Bunnings
1282
499
Bunnings
7360
146
Woolworths
Woolworths
Woolworths
Masters
723
291
Masters
38
015
Masters
761
15
Home Timber amp Hardware
381
154
Home Timber amp Hardware
381
148
Home Timber amp Hardware
762
15
company owned
69
028
company owned
305
119
company owned
374
07
Gunns
10
004
Gunns
59
023
Gunns
69
01
Becks
12
005
Becks
36
014
Becks
48
01
Magnet Mart
24
010
Magnet Mart
36
014
Magnet Mart
60
01
Flatmans
4
002
Flatmans
21
008
Flatmans
25
00
Taits
5
002
Taits
49
019
Taits
54
01
Mittagong
3
001
Mittagong
23
009
Mittagong
26
01
Hardings
11
004
Hardings
61
024
Hardings
72
01
FAW Building
0
000
FAW Building
20
008
FAW Building
20
00
wholesale customers
480
193
wholesale customers
116
045
wholesale customers
596
12
Woolworths Other
618
249
Woolworths Other
726
283
Woolworths Other
1344
27
Metcash
Metcash
Metcash
Mitre 10 branded outlets
690
278
Mitre 10 branded outlets
810
315
Mitre 10 branded outlets
1500
30
Mitre 10 supplied independents
210
085
Mitre 10 supplied independents
90
035
Mitre 10 supplied independents
300
06
Mitre10
900
363
Mitre10
900
350
Mitre10
1800
36
Specialist Plumbing
274
110
Specialist Plumbing
2284
889
Specialist Plumbing
2558
506
Reece
219
088
Reece
1239
482
Reece
1458
29
Tradelink
55
022
Tradelink
1045
407
Tradelink
1100
22
Specialist Paint
255
103
Specialist Paint
1021
397
Specialist Paint
1276
25
Dulux
22
009
Dulux
89
035
Dulux
111
02
Inspirations
73
029
Inspirations
292
114
Inspirations
365
07
Paint Place
60
024
Paint Place
240
093
Paint Place
300
06
Bristol
60
024
Bristol
240
093
Bristol
300
06
Solver Decorator Centre
20
008
Solver Decorator Centre
80
031
Solver Decorator Centre
100
02
Wattyl Trade Paint Centre
20
008
Wattyl Trade Paint Centre
80
031
Wattyl Trade Paint Centre
100
02
Specialist Hardware
142
06
Specialist Hardware
568
22
Specialist Hardware
710
14
Hardware amp Building Traders (HBT)
86
035
Hardware amp Building Traders (HBT)
344
134
Hardware amp Building Traders (HBT)
430
09
Bowens
24
010
Bowens
96
037
Bowens
120
02
Swadling Group
12
005
Swadling Group
48
019
Swadling Group
60
01
Hardware amp General
20
008
Hardware amp General
80
031
Hardware amp General
100
02
Specialist Other
900
36
Specialist Other
627
24
Specialist Other
1527
30
Total Tools
35
014
Total Tools
81
032
Total Tools
116
02
Stratco
100
040
Stratco
100
039
Stratco
200
04
Barbeques Galore
200
081
Barbeques Galore
0
000
Barbeques Galore
200
04
Carpet Call
160
064
Carpet Call
40
016
Carpet Call
200
04
Outdoor Furniture Specialists
70
028
Outdoor Furniture Specialists
0
000
Outdoor Furniture Specialists
70
01
Beacon Lighting
143
058
Beacon Lighting
8
003
Beacon Lighting
151
03
Howards Storage World
90
036
Howards Storage World
0
000
Howards Storage World
90
02
Gyprock Trade
0
000
Gyprock Trade
260
101
Gyprock Trade
260
05
Flower Power
95
038
Flower Power
5
002
Flower Power
100
02
Stegbar
7
003
Stegbar
133
052
Stegbar
140
03
Big Box Other
626
25
Big Box Other
2145
83
Big Box Other
2771
55
IKEA
233
094
IKEA
0
000
IKEA
233
05
Supermarkets
152
061
Supermarkets
0
000
Supermarkets
152
03
Discount department stores
241
097
Discount department stores
0
000
Discount department stores
241
05
Direct delivery from supplier
0
000
Direct delivery from supplier
2145
835
Direct delivery from supplier
2145
42
Other
13094
5278
Other
11782
4585
Other
24876
493
Grand Total
24810
10000
Grand Total
25696
10000
Grand Total
50506
1000
23922
21449
45371
888
4247
5135
Other (original)
13644
5499
Other (original)
12203
4749
Other (original)
25847
512
Adjustment
-550
Adjustment
-421
Adjustment
-971
net
13094
net
11782
net
24876
Bunnings
Masters
Home Timber amp Hardware
Woolworths Other
Mitre10
Specialist Plumbing
Specialist Paint
Specialist Hardware
Specialist Other
Big Box Other
Other
Market Share Calculation
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Bunnings
6078
254
1232
574
7310
161
Blackwoods
0
000
50
023
50
01
6078
2541
1282
598
7360
162
Woolworths
Masters
723
302
38
018
761
17
Home Timber amp Hardware
381
159
381
178
762
17
company owned
69
029
305
142
374
08
Gunns
10
004
59
028
69
02
Becks
12
005
36
017
48
01
Magnet Mart
24
010
36
017
60
01
Flatmans
4
002
21
010
25
01
Taits
5
002
49
023
54
01
Mittagong
3
001
23
011
26
01
Hardings
11
005
61
028
72
02
FAW Building
0
000
20
009
20
00
wholesale customers
480
201
116
054
596
13
1653
691
840
392
2493
55
Metcash
Mitre 10 branded outlets
690
288
810
378
1500
33
Mitre 10 supplied independents
210
088
90
042
300
07
900
376
900
420
1800
40
Specialist Plumbing
Reece
219
092
1239
578
1458
32
Tradelink
55
023
1045
487
1100
24
Specialist Paint
Dulux
22
009
89
041
111
02
Inspirations
73
031
292
136
365
08
Paint Place
60
025
240
112
300
07
Bristol
60
025
240
112
300
07
Solver Decorator Centre
20
008
80
037
100
02
Wattyl Trade Paint Centre
20
008
80
037
100
02
Specialist Hardware
Hardware amp Building Traders (HBT)
86
036
344
160
430
09
Bowens
24
010
96
045
120
03
Swadling Group
12
005
48
022
60
01
Hardware amp General
20
008
80
037
100
02
Specialist Other
Total Tools
35
015
81
038
116
03
Stratco
100
042
100
047
200
04
Barbeques Galore
200
084
0
000
200
04
Carpet Call
160
067
40
019
200
04
Outdoor Furniture Specialists
70
029
0
000
70
02
Beacon Lighting
143
060
8
004
151
03
Howards Storage World
90
038
0
000
90
02
Gyprock Trade
0
000
260
121
260
06
Flower Power
95
040
5
002
100
02
Stegbar
7
003
133
062
140
03
Big Box Other
IKEA
233
097
0
000
233
05
Supermarkets
152
064
0
000
152
03
Discount department stores
241
101
0
000
241
05
Direct delivery from supplier
0
000
2145
1000
2145
47
Other
13094
5474
11782
5493
24876
548
Grand Total
23922
10000
21449
10000
45371
1000
23922
21449
45371
- 0
- 0
- 0
Other (original)
13644
5704
12203
5689
25847
570
Adjustment
-550
-421
-971
net
13094
11782
24876
Original
Current
42000
8600
10800
4400
4700
12200
42000
8600
10800
4400
4700
12200
Aus
Retail
Trade
Plumbing
White goods
Consumer
Aus
Retail
Trade
Plumbing
White goods
Consumer
Retail
Trade
Plumbing
White goods
Consumer
Bunnings
6490
4280
1000
280
80
850
7360
6078
1282
4854
1134
318
91
964
- 0
Mitre10
1720
880
550
60
30
200
1800
900
900
921
576
63
31
209
Reece
1500
1500
1458
219
1239
- 0
- 0
1458
- 0
- 0
Lawerence amp Hanson
1000
200
800
- 0
- 0
- 0
- 0
- 0
- 0
Tradelink
900
900
1100
55
1045
- 0
- 0
1100
- 0
- 0
DanksMasters
850
380
280
60
30
100
1523
1104
419
681
502
108
54
179
Harvey Norman
800
750
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbtec
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Good Guys
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Middys
500
100
400
- 0
- 0
- 0
- 0
- 0
- 0
Dahlsens
430
80
300
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbing Plus
400
400
- 0
- 0
- 0
- 0
- 0
- 0
BBQ Galore
250
250
200
- 0
200
- 0
- 0
- 0
- 0
200
Betta
250
250
- 0
- 0
- 0
- 0
- 0
- 0
Bowens
250
50
200
- 0
- 0
- 0
- 0
- 0
- 0
Total Tools
200
200
- 0
- 0
- 0
- 0
- 0
- 0
Paint Right
200
70
130
- 0
- 0
- 0
- 0
- 0
- 0
Beacon Lighting
200
150
50
- 0
- 0
- 0
- 0
- 0
- 0
Paint Place
150
50
100
- 0
- 0
- 0
- 0
- 0
- 0
Flower Power
150
150
- 0
- 0
- 0
- 0
- 0
- 0
Banner
90
20
70
- 0
- 0
- 0
- 0
- 0
- 0
Straco
80
80
- 0
- 0
- 0
- 0
- 0
- 0
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
HTH - FEB16
HTH - FEB17
Trade
Trade
Retail
Trade
HTH Indep
7500
510
3825
3675
51
HTH Co Owned
4500
800
3600
900
80
00
12000
62
7425
4575
62
M10 - FEB16
M10 - FEB17
Trade
Trade
Retail
Trade
M10 wholes
9750
570
5558
4193
57
00
9750
5558
4193
57
CORE HOME Improvement
Overall
Retail
Ret
Trade
Trade
Tot
Tot
Tot
Bunnings
780
68
170
10
950
34
180
18 ($95b)
Masters
078
7
030
2
108
4
40
4 ($11b)
HTH
046
4
074
4
120
4
40
4 ($12b)
M10
088
8
090
5
178
6
40
4 ($18b)
Reece
025
2
180
11
205
7
32
3 ($21b)
Tradelink
007
1
070
4
077
3
24
2 ($08b)
Dahlsens
040
2
040
1
05
1 ($04b)
Plumbtec
050
3
050
2
05
1 ($05b)
0
0
0
00
0 ($00b)
Other
130
11
970
58
1100
39
634
63 ($110b)
1154
100
1674
100
2828
100
1000
115b
18
167b
283b
56
1472
1472 ($283bb)
28b
74
Waterfall data input
Invisible
Final
Minus
Plus
Base
Retail
115
Trade
115
167
Core HI
283
Extended HI
283
1315
132b
Whitegoods
414
485
49b
Total Market
463
463b
Chart Data
Sales amp EBIT (from annual report)
HW Market
HW Retail
Core $M
FY15
FY14
FY13
Market share
Enter Sales
market
Chart
SALES
GROWTH
EBIT
EBIT
SALES
GROWTH
EBIT
EBIT
SALES
EBIT
EBIT
Retail
Entry
Garden
23
Core
90
20
Timber amp Building
10750
108
Kitchen amp Bathroom
26
Core
90
23
Dahlsens
350
33
350M
Hardware
12
Core
60
07
Bowen
250
23
250M
Plumbing (incl Fashion Tapeware amp Acc)
56
Core
25
14
Banner
70
07
70M
Paint
17
Core
60
10
Stratco
70
07
70M
Tools
23
Core
55
13
Other
10010
1
10010M
Electrical
17
Core
55
09
Electrical
1650
17
Timber amp Building
108
Core
0
00
Lawrence and hansen
925
561
925M
Core
280
96
Beacon
179
108
179M
179
Washing Machine amp Dryers
24
Whitegoods
24
Middys
500
303
500M
Fridges Freezer amp Dishwashers
26
Whitegoods
26
Other
46
28
46M
Whitegoods
50
50
Tools
2300
23
Other
27
Extended
27
Total Tools
130
57
130M
Camping Equip amp Storage
12
Extended
12
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
57
130M
128
Home Decor amp Craft
19
Extended
19
Other
2040
887
2040M
Small Appliances
24
Extended
24
Paint
1700
17
Flooring amp Covers
26
Extended
26
Paint Right Ash 61 stores
140
82
140M
BBQ amp Outdoor Furniture
10
Extended
10
Paint Place Ash 115stores
350
206
350M
Kitchen Appliances
13
Extended
13
Other Ash Paint place - 115 locations aust wide
1210
712
1210M
Extended
131
131
Plumbing
5600
56
461
277
Reece
2085
372 Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
2085M
2085
175
1775
Tradelink
1200
214
1200M
1200 Ash FY15 sales drop of 11 on Fy14
Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
Ash 61 stores
Ash 115stores
Ash Paint place - 115 locations aust wide
Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
To compile the list IBISWorld gathered data through primary research ASIC-lodged company reports and its own appraisals of company revenue based on historic data and industry analysis
Read more httpwwwafrcomleadershipbrw-liststop-500-private-companiesafr-top-500-private-companies-20160828-gr2zytixzz4acFaFxWv
Source - DGC Advisory Market report - AUG16
Corp amp independent Specialists
56
Chart Data
Bunnings
22
Core $M
Mitre10
4
Market share
Enter Sales
Reece
4
Natbuild
3
Timber amp Building
10936
masters
3
Dahlsens
322
Lawrence amp Hanson
3
Hardware amp General
122
Home timber
2
Bowen
342
Tradelink
2
Banner
70
HBT
1
Stratco
70
Dahlsens
Other
10010
Plumbtec
Electrical
1650
online hardware retailers
Lawrence and hansen
925
Samios plumbing
Beacon
179
Middys
500
Other
46
Tools
2300
Total Tools
130
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
Other
2040
Paint
1700
Paint Right Ash 61 stores
140
Paint Place Ash 115stores
350
Other Ash Paint place - 115 locations aust wide
1210
Plumbing
5743
Reece
2085
Tradelink
1200
Plumbtec
500
Plumbers Supplies Co Op
143
Other
1815
Kitchen amp Bathroom
2550
Impala
Kitset
Other
2550
Garden
2250
Flower Power
70
Other
2180
Hardware
1200
Other
1200
Hardware amp General
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
Ian MorriceMetcash CEO
Successful Independents
For
per
sona
l use
onl
y
4
Metcash
FOOD LIQUOR HARDWAREFor
per
sona
l use
onl
y
5
HTH acquisition ndash now second largest in Hardware marketMetcash Hardware HTH Independent
DC Locations Qld Vic WA NSW (2) Vic WA QLD (1) Vic (1) WA (2) NSW (2)
Number of Employees (FTE) ~1000 ~1600 ~2600
~$2bn business with significant scale1 Year ended 30 April 2016 for Metcash Hardware Year ended 30 June 2016 for HTH 2 Stores held through 8 separate joint ventures3 Neither Metcash nor HTH have sole-supply agreements with unbannered stores Combined unbannered network excluding overlap is ~500 stores F
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Business Overview
For
per
sona
l use
onl
y
7
IHG management team
ANNETTE WELSH
Merchandise
CHRIS TSOTRA
Joint VenturesAlliance
ROBIN JOHNSTON
Commercial
RICK SOLA
Supply Chain amp LogisticsMarketing
DARREN MANNING
Operations Retail amp Trade
STUARTWILLINGHAM
Company Stores
Human Resources
RICHARD BROWN
CEO MARK LAIDLAW
KAREN FAHEY
For
per
sona
l use
onl
y
8
IHG ndash second largest player in Hardware market
Acquisition of HTH in October 2016o Now clear 2 in Hardware marketo Strengthened position in Trade segmento HTH and Mitre 10 complementary with limited
store overlap
Opportunity to roll out speciality offers such as plumbing tiling power garden equipment and flooring
Retail offer strengthened through addition of 41 HTH corporate stores to 53 Mitre 10 JV stores
Bunnings has consolidated the retail sector becoming the dominant player The trade market remains fragmented with traditional wholesalers competing against trade focused chains and specialists (eg Reece)
Mitre 10s brand is well positioned across both retail and trade segments of the $238B HI core market
Source Pittney Bowes amp Moore Stephens 2009Estimated Market Share based on internal assumptions
HI market intel Mar17
Competitive landscape
ampZampFampA ampD ampT
Dahlsens
Bowens
HTH Company
Reece
Tradelink
HBT
HTH
Masters
True Value
Small
Store Format
Large
Retail Focus
Trade Focus
Total Tools
Stratco
Landmark
Plumbtec
Thrifty Link
HampG
Swan Plumbing
Beaumont Tiles
Stihl
Mitre 10
M10 JV Stores
Hardings
Hudsons
Natbuild
Porters
By Category - Core
ampZampF
Garden
225
Kitchen amp Bathroom
25499999999999998Hardware
12Plumbing (incl Fashion Tapeware amp Acc)
56Paint
17Tools
22999999999999998Electrical
165Timber amp Building
1075
Total Core HI Sales
By Category
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
Traditionally Mitre10 plays in the $28bn market dominated by two distinct consumer types Retail (DIY) and Trade The Trade Market is highly fragmented with un-bannered independents garnering 59
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade The Trade market is highly fragmented with unbannered independents amp specialists garnering 78 of the market
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
Other
61149
64
2234799
35
4722
67
2415
79
Sheet2
Sheet3
Sheet1
Growth Opportunity
Sheet4
HI as a picture
Sheet6
Sheet5
image1emf
image2png
image3png
image4jpeg
image5jpeg
image6png
image15jpeg
image16jpeg
image17jpeg
image18jpeg
image19jpeg
image20jpeg
image21jpeg
image22jpeg
image23jpeg
image7gif
image8jpeg
image9jpeg
image10png
image11jpeg
image12gif
image13jpeg
image14jpeg
image28jpeg
image29jpeg
image30jpeg
image24png
image25jpeg
image26jpeg
image27jpeg
image31png
image32jpeg
image33png
image34png
image35jpeg
image36png
image37png
image38png
9
IHG brands
Key customers stores IHG sales
Iconic independent and local network Operates in both Trade and DIY segments Customers include national residential builders through to local handy-man 306 47
Strong focus on Trade segment and home builders Mix of independently owned and company-owned stores Customers include national residential builders through to local handy-man 246 37
ldquoYour local hardware storerdquo National hardware chain with small format stores Services metro and regional communities 126 2
ldquoMaking hardware easyrdquo National hardware chain with small format stores Services metro and regional communities across Australia 67 1
Supplier of quality lsquofront of wallrsquo plumbing (bathrooms kitchens appliances) 6 outlets across Melbourne Brisbane Adelaide and surrounding areas Customer base gt90 trade 5 5
~500 unbannered stores contribute ~8 of total sales
Brands
For
per
sona
l use
onl
y
10
An extensive national footprint
StateMitre
10stores
HTHstores
Totalstores DCs
NSW 81 104 185 2
QLD 113 68 181 1
SA NT 60 37 97
TAS 14 14 28
VIC 71 103 174 1
WA 34 51 85 2
TOTAL 373 377 750 6
HTH store footprint is complementary to Mitre 10 ndash limited overlap
DCs will reduce from 7 to 6 (South Dandenong to close) ndash delivers synergy benefits
Currently 2 South Dandenong DC to be closed in April
1
2
113
81
71
34
14
60
14
51
37
68 1
104 2
103
For
per
sona
l use
onl
y
11
679
71
Independent Majority owned or Company-owned
IHG committed to ldquoSuccessful Independentsrdquo
750 bannered stores Successful Independents is key focus Independent store owners gt90 of IHG
network Company-owned stores are an important
component of the Hardware business 53 Mitre 10 JV stores (30 majority owned) 41 Company-owned stores added through
HTH acquisition supported by a strong and experienced management team Hardware offer extended through addition of
stores such as Hardings Hardware and TaitTimber Location of Independent and Company-
owned stores are complementary with minimal conflict sites F
or p
erso
nal u
se o
nly
12
~60~40
IHG
Trade Retail
Strengthened position in Trade segment
Proportion of Trade sales increased from ~55 to ~60 through HTH acquisition
Attractive service offer ldquoGet in get out get on with itrdquo and ldquoGo where the Tradies gordquo
Focus on delivering what Tradies wanto Low cost and transparento Rapid response from order to delivery (DIFOT)o Timber undercovero Relationship at all touch pointso Trade drive through and separate Trade desko Early opening clean facilities coffeeo Investment in technology to improve efficiency
~55~45
Mitre 10
~62~38
HTH
Sales mix
Based on sales for year ended 30 April 2016 for Metcash Hardware and 30 June 2016 for HTH For
per
sona
l use
onl
y
13
Consumer led strategy
SHOPPER LED RANGE amp COMPETITIVE PRICING
BUILD TRADE
DIGITALDATA INSIGHTS
WORKING SMARTER
BEST STORE IN TOWN
SAPPHIRE PROGRAM
Good progress across all Mitre 10 stores
HTH opportunities identified
Combined the best of both to make a better businessFor
per
sona
l use
onl
y
Annette WelshGM ndash Merchandise
Key strategic initiatives
For
per
sona
l use
onl
y
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
l use
onl
y
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
15
16
17
18
18
19
63
684768
741389754
7999159334
81511433614
87674603678
42
42798
43611162
44439774078
452841297855
461445282514
1019
1019
1019
1019
1019
FY12
FY13
FY14
FY15
FY16
FY17
Hardware
Home Improvement
Large Big Box
Small to Medium
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
46 stores x25M
16 Trade
6 of overall biz
36 stores x 10m
Updated Aug 2016
Market Share Calculation
Market Share Calculation
Market Share Calculation
Source CLSA 5814
Source CLSA 5814
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Wesfarmers
Wesfarmers
Bunnings
6078
245
Bunnings
1232
479
Bunnings
7310
145
Blackwoods
0
000
Blackwoods
50
019
Blackwoods
50
01
Bunnings
6078
2450
Bunnings
1282
499
Bunnings
7360
146
Woolworths
Woolworths
Woolworths
Masters
723
291
Masters
38
015
Masters
761
15
Home Timber amp Hardware
381
154
Home Timber amp Hardware
381
148
Home Timber amp Hardware
762
15
company owned
69
028
company owned
305
119
company owned
374
07
Gunns
10
004
Gunns
59
023
Gunns
69
01
Becks
12
005
Becks
36
014
Becks
48
01
Magnet Mart
24
010
Magnet Mart
36
014
Magnet Mart
60
01
Flatmans
4
002
Flatmans
21
008
Flatmans
25
00
Taits
5
002
Taits
49
019
Taits
54
01
Mittagong
3
001
Mittagong
23
009
Mittagong
26
01
Hardings
11
004
Hardings
61
024
Hardings
72
01
FAW Building
0
000
FAW Building
20
008
FAW Building
20
00
wholesale customers
480
193
wholesale customers
116
045
wholesale customers
596
12
Woolworths Other
618
249
Woolworths Other
726
283
Woolworths Other
1344
27
Metcash
Metcash
Metcash
Mitre 10 branded outlets
690
278
Mitre 10 branded outlets
810
315
Mitre 10 branded outlets
1500
30
Mitre 10 supplied independents
210
085
Mitre 10 supplied independents
90
035
Mitre 10 supplied independents
300
06
Mitre10
900
363
Mitre10
900
350
Mitre10
1800
36
Specialist Plumbing
274
110
Specialist Plumbing
2284
889
Specialist Plumbing
2558
506
Reece
219
088
Reece
1239
482
Reece
1458
29
Tradelink
55
022
Tradelink
1045
407
Tradelink
1100
22
Specialist Paint
255
103
Specialist Paint
1021
397
Specialist Paint
1276
25
Dulux
22
009
Dulux
89
035
Dulux
111
02
Inspirations
73
029
Inspirations
292
114
Inspirations
365
07
Paint Place
60
024
Paint Place
240
093
Paint Place
300
06
Bristol
60
024
Bristol
240
093
Bristol
300
06
Solver Decorator Centre
20
008
Solver Decorator Centre
80
031
Solver Decorator Centre
100
02
Wattyl Trade Paint Centre
20
008
Wattyl Trade Paint Centre
80
031
Wattyl Trade Paint Centre
100
02
Specialist Hardware
142
06
Specialist Hardware
568
22
Specialist Hardware
710
14
Hardware amp Building Traders (HBT)
86
035
Hardware amp Building Traders (HBT)
344
134
Hardware amp Building Traders (HBT)
430
09
Bowens
24
010
Bowens
96
037
Bowens
120
02
Swadling Group
12
005
Swadling Group
48
019
Swadling Group
60
01
Hardware amp General
20
008
Hardware amp General
80
031
Hardware amp General
100
02
Specialist Other
900
36
Specialist Other
627
24
Specialist Other
1527
30
Total Tools
35
014
Total Tools
81
032
Total Tools
116
02
Stratco
100
040
Stratco
100
039
Stratco
200
04
Barbeques Galore
200
081
Barbeques Galore
0
000
Barbeques Galore
200
04
Carpet Call
160
064
Carpet Call
40
016
Carpet Call
200
04
Outdoor Furniture Specialists
70
028
Outdoor Furniture Specialists
0
000
Outdoor Furniture Specialists
70
01
Beacon Lighting
143
058
Beacon Lighting
8
003
Beacon Lighting
151
03
Howards Storage World
90
036
Howards Storage World
0
000
Howards Storage World
90
02
Gyprock Trade
0
000
Gyprock Trade
260
101
Gyprock Trade
260
05
Flower Power
95
038
Flower Power
5
002
Flower Power
100
02
Stegbar
7
003
Stegbar
133
052
Stegbar
140
03
Big Box Other
626
25
Big Box Other
2145
83
Big Box Other
2771
55
IKEA
233
094
IKEA
0
000
IKEA
233
05
Supermarkets
152
061
Supermarkets
0
000
Supermarkets
152
03
Discount department stores
241
097
Discount department stores
0
000
Discount department stores
241
05
Direct delivery from supplier
0
000
Direct delivery from supplier
2145
835
Direct delivery from supplier
2145
42
Other
13094
5278
Other
11782
4585
Other
24876
493
Grand Total
24810
10000
Grand Total
25696
10000
Grand Total
50506
1000
23922
21449
45371
888
4247
5135
Other (original)
13644
5499
Other (original)
12203
4749
Other (original)
25847
512
Adjustment
-550
Adjustment
-421
Adjustment
-971
net
13094
net
11782
net
24876
Bunnings
Masters
Home Timber amp Hardware
Woolworths Other
Mitre10
Specialist Plumbing
Specialist Paint
Specialist Hardware
Specialist Other
Big Box Other
Other
Market Share Calculation
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Bunnings
6078
254
1232
574
7310
161
Blackwoods
0
000
50
023
50
01
6078
2541
1282
598
7360
162
Woolworths
Masters
723
302
38
018
761
17
Home Timber amp Hardware
381
159
381
178
762
17
company owned
69
029
305
142
374
08
Gunns
10
004
59
028
69
02
Becks
12
005
36
017
48
01
Magnet Mart
24
010
36
017
60
01
Flatmans
4
002
21
010
25
01
Taits
5
002
49
023
54
01
Mittagong
3
001
23
011
26
01
Hardings
11
005
61
028
72
02
FAW Building
0
000
20
009
20
00
wholesale customers
480
201
116
054
596
13
1653
691
840
392
2493
55
Metcash
Mitre 10 branded outlets
690
288
810
378
1500
33
Mitre 10 supplied independents
210
088
90
042
300
07
900
376
900
420
1800
40
Specialist Plumbing
Reece
219
092
1239
578
1458
32
Tradelink
55
023
1045
487
1100
24
Specialist Paint
Dulux
22
009
89
041
111
02
Inspirations
73
031
292
136
365
08
Paint Place
60
025
240
112
300
07
Bristol
60
025
240
112
300
07
Solver Decorator Centre
20
008
80
037
100
02
Wattyl Trade Paint Centre
20
008
80
037
100
02
Specialist Hardware
Hardware amp Building Traders (HBT)
86
036
344
160
430
09
Bowens
24
010
96
045
120
03
Swadling Group
12
005
48
022
60
01
Hardware amp General
20
008
80
037
100
02
Specialist Other
Total Tools
35
015
81
038
116
03
Stratco
100
042
100
047
200
04
Barbeques Galore
200
084
0
000
200
04
Carpet Call
160
067
40
019
200
04
Outdoor Furniture Specialists
70
029
0
000
70
02
Beacon Lighting
143
060
8
004
151
03
Howards Storage World
90
038
0
000
90
02
Gyprock Trade
0
000
260
121
260
06
Flower Power
95
040
5
002
100
02
Stegbar
7
003
133
062
140
03
Big Box Other
IKEA
233
097
0
000
233
05
Supermarkets
152
064
0
000
152
03
Discount department stores
241
101
0
000
241
05
Direct delivery from supplier
0
000
2145
1000
2145
47
Other
13094
5474
11782
5493
24876
548
Grand Total
23922
10000
21449
10000
45371
1000
23922
21449
45371
- 0
- 0
- 0
Other (original)
13644
5704
12203
5689
25847
570
Adjustment
-550
-421
-971
net
13094
11782
24876
Original
Current
42000
8600
10800
4400
4700
12200
42000
8600
10800
4400
4700
12200
Aus
Retail
Trade
Plumbing
White goods
Consumer
Aus
Retail
Trade
Plumbing
White goods
Consumer
Retail
Trade
Plumbing
White goods
Consumer
Bunnings
6490
4280
1000
280
80
850
7360
6078
1282
4854
1134
318
91
964
- 0
Mitre10
1720
880
550
60
30
200
1800
900
900
921
576
63
31
209
Reece
1500
1500
1458
219
1239
- 0
- 0
1458
- 0
- 0
Lawerence amp Hanson
1000
200
800
- 0
- 0
- 0
- 0
- 0
- 0
Tradelink
900
900
1100
55
1045
- 0
- 0
1100
- 0
- 0
DanksMasters
850
380
280
60
30
100
1523
1104
419
681
502
108
54
179
Harvey Norman
800
750
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbtec
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Good Guys
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Middys
500
100
400
- 0
- 0
- 0
- 0
- 0
- 0
Dahlsens
430
80
300
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbing Plus
400
400
- 0
- 0
- 0
- 0
- 0
- 0
BBQ Galore
250
250
200
- 0
200
- 0
- 0
- 0
- 0
200
Betta
250
250
- 0
- 0
- 0
- 0
- 0
- 0
Bowens
250
50
200
- 0
- 0
- 0
- 0
- 0
- 0
Total Tools
200
200
- 0
- 0
- 0
- 0
- 0
- 0
Paint Right
200
70
130
- 0
- 0
- 0
- 0
- 0
- 0
Beacon Lighting
200
150
50
- 0
- 0
- 0
- 0
- 0
- 0
Paint Place
150
50
100
- 0
- 0
- 0
- 0
- 0
- 0
Flower Power
150
150
- 0
- 0
- 0
- 0
- 0
- 0
Banner
90
20
70
- 0
- 0
- 0
- 0
- 0
- 0
Straco
80
80
- 0
- 0
- 0
- 0
- 0
- 0
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
HTH - FEB16
HTH - FEB17
Trade
Trade
Retail
Trade
HTH Indep
7500
510
3825
3675
51
HTH Co Owned
4500
800
3600
900
80
00
12000
62
7425
4575
62
M10 - FEB16
M10 - FEB17
Trade
Trade
Retail
Trade
M10 wholes
9750
570
5558
4193
57
00
9750
5558
4193
57
CORE HOME Improvement
Overall
Retail
Ret
Trade
Trade
Tot
Tot
Tot
Bunnings
780
68
170
10
950
34
180
18 ($95b)
Masters
078
7
030
2
108
4
40
4 ($11b)
HTH
046
4
074
4
120
4
40
4 ($12b)
M10
088
8
090
5
178
6
40
4 ($18b)
Reece
025
2
180
11
205
7
32
3 ($21b)
Tradelink
007
1
070
4
077
3
24
2 ($08b)
Dahlsens
040
2
040
1
05
1 ($04b)
Plumbtec
050
3
050
2
05
1 ($05b)
0
0
0
00
0 ($00b)
Other
130
11
970
58
1100
39
634
63 ($110b)
1154
100
1674
100
2828
100
1000
115b
18
167b
283b
56
1472
1472 ($283bb)
28b
74
Waterfall data input
Invisible
Final
Minus
Plus
Base
Retail
115
Trade
115
167
Core HI
283
Extended HI
283
1315
132b
Whitegoods
414
485
49b
Total Market
463
463b
Chart Data
Sales amp EBIT (from annual report)
HW Market
HW Retail
Core $M
FY15
FY14
FY13
Market share
Enter Sales
market
Chart
SALES
GROWTH
EBIT
EBIT
SALES
GROWTH
EBIT
EBIT
SALES
EBIT
EBIT
Retail
Entry
Garden
23
Core
90
20
Timber amp Building
10750
108
Kitchen amp Bathroom
26
Core
90
23
Dahlsens
350
33
350M
Hardware
12
Core
60
07
Bowen
250
23
250M
Plumbing (incl Fashion Tapeware amp Acc)
56
Core
25
14
Banner
70
07
70M
Paint
17
Core
60
10
Stratco
70
07
70M
Tools
23
Core
55
13
Other
10010
1
10010M
Electrical
17
Core
55
09
Electrical
1650
17
Timber amp Building
108
Core
0
00
Lawrence and hansen
925
561
925M
Core
280
96
Beacon
179
108
179M
179
Washing Machine amp Dryers
24
Whitegoods
24
Middys
500
303
500M
Fridges Freezer amp Dishwashers
26
Whitegoods
26
Other
46
28
46M
Whitegoods
50
50
Tools
2300
23
Other
27
Extended
27
Total Tools
130
57
130M
Camping Equip amp Storage
12
Extended
12
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
57
130M
128
Home Decor amp Craft
19
Extended
19
Other
2040
887
2040M
Small Appliances
24
Extended
24
Paint
1700
17
Flooring amp Covers
26
Extended
26
Paint Right Ash 61 stores
140
82
140M
BBQ amp Outdoor Furniture
10
Extended
10
Paint Place Ash 115stores
350
206
350M
Kitchen Appliances
13
Extended
13
Other Ash Paint place - 115 locations aust wide
1210
712
1210M
Extended
131
131
Plumbing
5600
56
461
277
Reece
2085
372 Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
2085M
2085
175
1775
Tradelink
1200
214
1200M
1200 Ash FY15 sales drop of 11 on Fy14
Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
Ash 61 stores
Ash 115stores
Ash Paint place - 115 locations aust wide
Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
To compile the list IBISWorld gathered data through primary research ASIC-lodged company reports and its own appraisals of company revenue based on historic data and industry analysis
Read more httpwwwafrcomleadershipbrw-liststop-500-private-companiesafr-top-500-private-companies-20160828-gr2zytixzz4acFaFxWv
Source - DGC Advisory Market report - AUG16
Corp amp independent Specialists
56
Chart Data
Bunnings
22
Core $M
Mitre10
4
Market share
Enter Sales
Reece
4
Natbuild
3
Timber amp Building
10936
masters
3
Dahlsens
322
Lawrence amp Hanson
3
Hardware amp General
122
Home timber
2
Bowen
342
Tradelink
2
Banner
70
HBT
1
Stratco
70
Dahlsens
Other
10010
Plumbtec
Electrical
1650
online hardware retailers
Lawrence and hansen
925
Samios plumbing
Beacon
179
Middys
500
Other
46
Tools
2300
Total Tools
130
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
Other
2040
Paint
1700
Paint Right Ash 61 stores
140
Paint Place Ash 115stores
350
Other Ash Paint place - 115 locations aust wide
1210
Plumbing
5743
Reece
2085
Tradelink
1200
Plumbtec
500
Plumbers Supplies Co Op
143
Other
1815
Kitchen amp Bathroom
2550
Impala
Kitset
Other
2550
Garden
2250
Flower Power
70
Other
2180
Hardware
1200
Other
1200
Hardware amp General
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
4
Metcash
FOOD LIQUOR HARDWAREFor
per
sona
l use
onl
y
5
HTH acquisition ndash now second largest in Hardware marketMetcash Hardware HTH Independent
DC Locations Qld Vic WA NSW (2) Vic WA QLD (1) Vic (1) WA (2) NSW (2)
Number of Employees (FTE) ~1000 ~1600 ~2600
~$2bn business with significant scale1 Year ended 30 April 2016 for Metcash Hardware Year ended 30 June 2016 for HTH 2 Stores held through 8 separate joint ventures3 Neither Metcash nor HTH have sole-supply agreements with unbannered stores Combined unbannered network excluding overlap is ~500 stores F
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Business Overview
For
per
sona
l use
onl
y
7
IHG management team
ANNETTE WELSH
Merchandise
CHRIS TSOTRA
Joint VenturesAlliance
ROBIN JOHNSTON
Commercial
RICK SOLA
Supply Chain amp LogisticsMarketing
DARREN MANNING
Operations Retail amp Trade
STUARTWILLINGHAM
Company Stores
Human Resources
RICHARD BROWN
CEO MARK LAIDLAW
KAREN FAHEY
For
per
sona
l use
onl
y
8
IHG ndash second largest player in Hardware market
Acquisition of HTH in October 2016o Now clear 2 in Hardware marketo Strengthened position in Trade segmento HTH and Mitre 10 complementary with limited
store overlap
Opportunity to roll out speciality offers such as plumbing tiling power garden equipment and flooring
Retail offer strengthened through addition of 41 HTH corporate stores to 53 Mitre 10 JV stores
Bunnings has consolidated the retail sector becoming the dominant player The trade market remains fragmented with traditional wholesalers competing against trade focused chains and specialists (eg Reece)
Mitre 10s brand is well positioned across both retail and trade segments of the $238B HI core market
Source Pittney Bowes amp Moore Stephens 2009Estimated Market Share based on internal assumptions
HI market intel Mar17
Competitive landscape
ampZampFampA ampD ampT
Dahlsens
Bowens
HTH Company
Reece
Tradelink
HBT
HTH
Masters
True Value
Small
Store Format
Large
Retail Focus
Trade Focus
Total Tools
Stratco
Landmark
Plumbtec
Thrifty Link
HampG
Swan Plumbing
Beaumont Tiles
Stihl
Mitre 10
M10 JV Stores
Hardings
Hudsons
Natbuild
Porters
By Category - Core
ampZampF
Garden
225
Kitchen amp Bathroom
25499999999999998Hardware
12Plumbing (incl Fashion Tapeware amp Acc)
56Paint
17Tools
22999999999999998Electrical
165Timber amp Building
1075
Total Core HI Sales
By Category
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
Traditionally Mitre10 plays in the $28bn market dominated by two distinct consumer types Retail (DIY) and Trade The Trade Market is highly fragmented with un-bannered independents garnering 59
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade The Trade market is highly fragmented with unbannered independents amp specialists garnering 78 of the market
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
Other
61149
64
2234799
35
4722
67
2415
79
Sheet2
Sheet3
Sheet1
Growth Opportunity
Sheet4
HI as a picture
Sheet6
Sheet5
image1emf
image2png
image3png
image4jpeg
image5jpeg
image6png
image15jpeg
image16jpeg
image17jpeg
image18jpeg
image19jpeg
image20jpeg
image21jpeg
image22jpeg
image23jpeg
image7gif
image8jpeg
image9jpeg
image10png
image11jpeg
image12gif
image13jpeg
image14jpeg
image28jpeg
image29jpeg
image30jpeg
image24png
image25jpeg
image26jpeg
image27jpeg
image31png
image32jpeg
image33png
image34png
image35jpeg
image36png
image37png
image38png
9
IHG brands
Key customers stores IHG sales
Iconic independent and local network Operates in both Trade and DIY segments Customers include national residential builders through to local handy-man 306 47
Strong focus on Trade segment and home builders Mix of independently owned and company-owned stores Customers include national residential builders through to local handy-man 246 37
ldquoYour local hardware storerdquo National hardware chain with small format stores Services metro and regional communities 126 2
ldquoMaking hardware easyrdquo National hardware chain with small format stores Services metro and regional communities across Australia 67 1
Supplier of quality lsquofront of wallrsquo plumbing (bathrooms kitchens appliances) 6 outlets across Melbourne Brisbane Adelaide and surrounding areas Customer base gt90 trade 5 5
~500 unbannered stores contribute ~8 of total sales
Brands
For
per
sona
l use
onl
y
10
An extensive national footprint
StateMitre
10stores
HTHstores
Totalstores DCs
NSW 81 104 185 2
QLD 113 68 181 1
SA NT 60 37 97
TAS 14 14 28
VIC 71 103 174 1
WA 34 51 85 2
TOTAL 373 377 750 6
HTH store footprint is complementary to Mitre 10 ndash limited overlap
DCs will reduce from 7 to 6 (South Dandenong to close) ndash delivers synergy benefits
Currently 2 South Dandenong DC to be closed in April
1
2
113
81
71
34
14
60
14
51
37
68 1
104 2
103
For
per
sona
l use
onl
y
11
679
71
Independent Majority owned or Company-owned
IHG committed to ldquoSuccessful Independentsrdquo
750 bannered stores Successful Independents is key focus Independent store owners gt90 of IHG
network Company-owned stores are an important
component of the Hardware business 53 Mitre 10 JV stores (30 majority owned) 41 Company-owned stores added through
HTH acquisition supported by a strong and experienced management team Hardware offer extended through addition of
stores such as Hardings Hardware and TaitTimber Location of Independent and Company-
owned stores are complementary with minimal conflict sites F
or p
erso
nal u
se o
nly
12
~60~40
IHG
Trade Retail
Strengthened position in Trade segment
Proportion of Trade sales increased from ~55 to ~60 through HTH acquisition
Attractive service offer ldquoGet in get out get on with itrdquo and ldquoGo where the Tradies gordquo
Focus on delivering what Tradies wanto Low cost and transparento Rapid response from order to delivery (DIFOT)o Timber undercovero Relationship at all touch pointso Trade drive through and separate Trade desko Early opening clean facilities coffeeo Investment in technology to improve efficiency
~55~45
Mitre 10
~62~38
HTH
Sales mix
Based on sales for year ended 30 April 2016 for Metcash Hardware and 30 June 2016 for HTH For
per
sona
l use
onl
y
13
Consumer led strategy
SHOPPER LED RANGE amp COMPETITIVE PRICING
BUILD TRADE
DIGITALDATA INSIGHTS
WORKING SMARTER
BEST STORE IN TOWN
SAPPHIRE PROGRAM
Good progress across all Mitre 10 stores
HTH opportunities identified
Combined the best of both to make a better businessFor
per
sona
l use
onl
y
Annette WelshGM ndash Merchandise
Key strategic initiatives
For
per
sona
l use
onl
y
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
l use
onl
y
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
15
16
17
18
18
19
63
684768
741389754
7999159334
81511433614
87674603678
42
42798
43611162
44439774078
452841297855
461445282514
1019
1019
1019
1019
1019
FY12
FY13
FY14
FY15
FY16
FY17
Hardware
Home Improvement
Large Big Box
Small to Medium
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
46 stores x25M
16 Trade
6 of overall biz
36 stores x 10m
Updated Aug 2016
Market Share Calculation
Market Share Calculation
Market Share Calculation
Source CLSA 5814
Source CLSA 5814
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Wesfarmers
Wesfarmers
Bunnings
6078
245
Bunnings
1232
479
Bunnings
7310
145
Blackwoods
0
000
Blackwoods
50
019
Blackwoods
50
01
Bunnings
6078
2450
Bunnings
1282
499
Bunnings
7360
146
Woolworths
Woolworths
Woolworths
Masters
723
291
Masters
38
015
Masters
761
15
Home Timber amp Hardware
381
154
Home Timber amp Hardware
381
148
Home Timber amp Hardware
762
15
company owned
69
028
company owned
305
119
company owned
374
07
Gunns
10
004
Gunns
59
023
Gunns
69
01
Becks
12
005
Becks
36
014
Becks
48
01
Magnet Mart
24
010
Magnet Mart
36
014
Magnet Mart
60
01
Flatmans
4
002
Flatmans
21
008
Flatmans
25
00
Taits
5
002
Taits
49
019
Taits
54
01
Mittagong
3
001
Mittagong
23
009
Mittagong
26
01
Hardings
11
004
Hardings
61
024
Hardings
72
01
FAW Building
0
000
FAW Building
20
008
FAW Building
20
00
wholesale customers
480
193
wholesale customers
116
045
wholesale customers
596
12
Woolworths Other
618
249
Woolworths Other
726
283
Woolworths Other
1344
27
Metcash
Metcash
Metcash
Mitre 10 branded outlets
690
278
Mitre 10 branded outlets
810
315
Mitre 10 branded outlets
1500
30
Mitre 10 supplied independents
210
085
Mitre 10 supplied independents
90
035
Mitre 10 supplied independents
300
06
Mitre10
900
363
Mitre10
900
350
Mitre10
1800
36
Specialist Plumbing
274
110
Specialist Plumbing
2284
889
Specialist Plumbing
2558
506
Reece
219
088
Reece
1239
482
Reece
1458
29
Tradelink
55
022
Tradelink
1045
407
Tradelink
1100
22
Specialist Paint
255
103
Specialist Paint
1021
397
Specialist Paint
1276
25
Dulux
22
009
Dulux
89
035
Dulux
111
02
Inspirations
73
029
Inspirations
292
114
Inspirations
365
07
Paint Place
60
024
Paint Place
240
093
Paint Place
300
06
Bristol
60
024
Bristol
240
093
Bristol
300
06
Solver Decorator Centre
20
008
Solver Decorator Centre
80
031
Solver Decorator Centre
100
02
Wattyl Trade Paint Centre
20
008
Wattyl Trade Paint Centre
80
031
Wattyl Trade Paint Centre
100
02
Specialist Hardware
142
06
Specialist Hardware
568
22
Specialist Hardware
710
14
Hardware amp Building Traders (HBT)
86
035
Hardware amp Building Traders (HBT)
344
134
Hardware amp Building Traders (HBT)
430
09
Bowens
24
010
Bowens
96
037
Bowens
120
02
Swadling Group
12
005
Swadling Group
48
019
Swadling Group
60
01
Hardware amp General
20
008
Hardware amp General
80
031
Hardware amp General
100
02
Specialist Other
900
36
Specialist Other
627
24
Specialist Other
1527
30
Total Tools
35
014
Total Tools
81
032
Total Tools
116
02
Stratco
100
040
Stratco
100
039
Stratco
200
04
Barbeques Galore
200
081
Barbeques Galore
0
000
Barbeques Galore
200
04
Carpet Call
160
064
Carpet Call
40
016
Carpet Call
200
04
Outdoor Furniture Specialists
70
028
Outdoor Furniture Specialists
0
000
Outdoor Furniture Specialists
70
01
Beacon Lighting
143
058
Beacon Lighting
8
003
Beacon Lighting
151
03
Howards Storage World
90
036
Howards Storage World
0
000
Howards Storage World
90
02
Gyprock Trade
0
000
Gyprock Trade
260
101
Gyprock Trade
260
05
Flower Power
95
038
Flower Power
5
002
Flower Power
100
02
Stegbar
7
003
Stegbar
133
052
Stegbar
140
03
Big Box Other
626
25
Big Box Other
2145
83
Big Box Other
2771
55
IKEA
233
094
IKEA
0
000
IKEA
233
05
Supermarkets
152
061
Supermarkets
0
000
Supermarkets
152
03
Discount department stores
241
097
Discount department stores
0
000
Discount department stores
241
05
Direct delivery from supplier
0
000
Direct delivery from supplier
2145
835
Direct delivery from supplier
2145
42
Other
13094
5278
Other
11782
4585
Other
24876
493
Grand Total
24810
10000
Grand Total
25696
10000
Grand Total
50506
1000
23922
21449
45371
888
4247
5135
Other (original)
13644
5499
Other (original)
12203
4749
Other (original)
25847
512
Adjustment
-550
Adjustment
-421
Adjustment
-971
net
13094
net
11782
net
24876
Bunnings
Masters
Home Timber amp Hardware
Woolworths Other
Mitre10
Specialist Plumbing
Specialist Paint
Specialist Hardware
Specialist Other
Big Box Other
Other
Market Share Calculation
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Bunnings
6078
254
1232
574
7310
161
Blackwoods
0
000
50
023
50
01
6078
2541
1282
598
7360
162
Woolworths
Masters
723
302
38
018
761
17
Home Timber amp Hardware
381
159
381
178
762
17
company owned
69
029
305
142
374
08
Gunns
10
004
59
028
69
02
Becks
12
005
36
017
48
01
Magnet Mart
24
010
36
017
60
01
Flatmans
4
002
21
010
25
01
Taits
5
002
49
023
54
01
Mittagong
3
001
23
011
26
01
Hardings
11
005
61
028
72
02
FAW Building
0
000
20
009
20
00
wholesale customers
480
201
116
054
596
13
1653
691
840
392
2493
55
Metcash
Mitre 10 branded outlets
690
288
810
378
1500
33
Mitre 10 supplied independents
210
088
90
042
300
07
900
376
900
420
1800
40
Specialist Plumbing
Reece
219
092
1239
578
1458
32
Tradelink
55
023
1045
487
1100
24
Specialist Paint
Dulux
22
009
89
041
111
02
Inspirations
73
031
292
136
365
08
Paint Place
60
025
240
112
300
07
Bristol
60
025
240
112
300
07
Solver Decorator Centre
20
008
80
037
100
02
Wattyl Trade Paint Centre
20
008
80
037
100
02
Specialist Hardware
Hardware amp Building Traders (HBT)
86
036
344
160
430
09
Bowens
24
010
96
045
120
03
Swadling Group
12
005
48
022
60
01
Hardware amp General
20
008
80
037
100
02
Specialist Other
Total Tools
35
015
81
038
116
03
Stratco
100
042
100
047
200
04
Barbeques Galore
200
084
0
000
200
04
Carpet Call
160
067
40
019
200
04
Outdoor Furniture Specialists
70
029
0
000
70
02
Beacon Lighting
143
060
8
004
151
03
Howards Storage World
90
038
0
000
90
02
Gyprock Trade
0
000
260
121
260
06
Flower Power
95
040
5
002
100
02
Stegbar
7
003
133
062
140
03
Big Box Other
IKEA
233
097
0
000
233
05
Supermarkets
152
064
0
000
152
03
Discount department stores
241
101
0
000
241
05
Direct delivery from supplier
0
000
2145
1000
2145
47
Other
13094
5474
11782
5493
24876
548
Grand Total
23922
10000
21449
10000
45371
1000
23922
21449
45371
- 0
- 0
- 0
Other (original)
13644
5704
12203
5689
25847
570
Adjustment
-550
-421
-971
net
13094
11782
24876
Original
Current
42000
8600
10800
4400
4700
12200
42000
8600
10800
4400
4700
12200
Aus
Retail
Trade
Plumbing
White goods
Consumer
Aus
Retail
Trade
Plumbing
White goods
Consumer
Retail
Trade
Plumbing
White goods
Consumer
Bunnings
6490
4280
1000
280
80
850
7360
6078
1282
4854
1134
318
91
964
- 0
Mitre10
1720
880
550
60
30
200
1800
900
900
921
576
63
31
209
Reece
1500
1500
1458
219
1239
- 0
- 0
1458
- 0
- 0
Lawerence amp Hanson
1000
200
800
- 0
- 0
- 0
- 0
- 0
- 0
Tradelink
900
900
1100
55
1045
- 0
- 0
1100
- 0
- 0
DanksMasters
850
380
280
60
30
100
1523
1104
419
681
502
108
54
179
Harvey Norman
800
750
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbtec
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Good Guys
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Middys
500
100
400
- 0
- 0
- 0
- 0
- 0
- 0
Dahlsens
430
80
300
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbing Plus
400
400
- 0
- 0
- 0
- 0
- 0
- 0
BBQ Galore
250
250
200
- 0
200
- 0
- 0
- 0
- 0
200
Betta
250
250
- 0
- 0
- 0
- 0
- 0
- 0
Bowens
250
50
200
- 0
- 0
- 0
- 0
- 0
- 0
Total Tools
200
200
- 0
- 0
- 0
- 0
- 0
- 0
Paint Right
200
70
130
- 0
- 0
- 0
- 0
- 0
- 0
Beacon Lighting
200
150
50
- 0
- 0
- 0
- 0
- 0
- 0
Paint Place
150
50
100
- 0
- 0
- 0
- 0
- 0
- 0
Flower Power
150
150
- 0
- 0
- 0
- 0
- 0
- 0
Banner
90
20
70
- 0
- 0
- 0
- 0
- 0
- 0
Straco
80
80
- 0
- 0
- 0
- 0
- 0
- 0
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
HTH - FEB16
HTH - FEB17
Trade
Trade
Retail
Trade
HTH Indep
7500
510
3825
3675
51
HTH Co Owned
4500
800
3600
900
80
00
12000
62
7425
4575
62
M10 - FEB16
M10 - FEB17
Trade
Trade
Retail
Trade
M10 wholes
9750
570
5558
4193
57
00
9750
5558
4193
57
CORE HOME Improvement
Overall
Retail
Ret
Trade
Trade
Tot
Tot
Tot
Bunnings
780
68
170
10
950
34
180
18 ($95b)
Masters
078
7
030
2
108
4
40
4 ($11b)
HTH
046
4
074
4
120
4
40
4 ($12b)
M10
088
8
090
5
178
6
40
4 ($18b)
Reece
025
2
180
11
205
7
32
3 ($21b)
Tradelink
007
1
070
4
077
3
24
2 ($08b)
Dahlsens
040
2
040
1
05
1 ($04b)
Plumbtec
050
3
050
2
05
1 ($05b)
0
0
0
00
0 ($00b)
Other
130
11
970
58
1100
39
634
63 ($110b)
1154
100
1674
100
2828
100
1000
115b
18
167b
283b
56
1472
1472 ($283bb)
28b
74
Waterfall data input
Invisible
Final
Minus
Plus
Base
Retail
115
Trade
115
167
Core HI
283
Extended HI
283
1315
132b
Whitegoods
414
485
49b
Total Market
463
463b
Chart Data
Sales amp EBIT (from annual report)
HW Market
HW Retail
Core $M
FY15
FY14
FY13
Market share
Enter Sales
market
Chart
SALES
GROWTH
EBIT
EBIT
SALES
GROWTH
EBIT
EBIT
SALES
EBIT
EBIT
Retail
Entry
Garden
23
Core
90
20
Timber amp Building
10750
108
Kitchen amp Bathroom
26
Core
90
23
Dahlsens
350
33
350M
Hardware
12
Core
60
07
Bowen
250
23
250M
Plumbing (incl Fashion Tapeware amp Acc)
56
Core
25
14
Banner
70
07
70M
Paint
17
Core
60
10
Stratco
70
07
70M
Tools
23
Core
55
13
Other
10010
1
10010M
Electrical
17
Core
55
09
Electrical
1650
17
Timber amp Building
108
Core
0
00
Lawrence and hansen
925
561
925M
Core
280
96
Beacon
179
108
179M
179
Washing Machine amp Dryers
24
Whitegoods
24
Middys
500
303
500M
Fridges Freezer amp Dishwashers
26
Whitegoods
26
Other
46
28
46M
Whitegoods
50
50
Tools
2300
23
Other
27
Extended
27
Total Tools
130
57
130M
Camping Equip amp Storage
12
Extended
12
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
57
130M
128
Home Decor amp Craft
19
Extended
19
Other
2040
887
2040M
Small Appliances
24
Extended
24
Paint
1700
17
Flooring amp Covers
26
Extended
26
Paint Right Ash 61 stores
140
82
140M
BBQ amp Outdoor Furniture
10
Extended
10
Paint Place Ash 115stores
350
206
350M
Kitchen Appliances
13
Extended
13
Other Ash Paint place - 115 locations aust wide
1210
712
1210M
Extended
131
131
Plumbing
5600
56
461
277
Reece
2085
372 Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
2085M
2085
175
1775
Tradelink
1200
214
1200M
1200 Ash FY15 sales drop of 11 on Fy14
Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
Ash 61 stores
Ash 115stores
Ash Paint place - 115 locations aust wide
Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
To compile the list IBISWorld gathered data through primary research ASIC-lodged company reports and its own appraisals of company revenue based on historic data and industry analysis
Read more httpwwwafrcomleadershipbrw-liststop-500-private-companiesafr-top-500-private-companies-20160828-gr2zytixzz4acFaFxWv
Source - DGC Advisory Market report - AUG16
Corp amp independent Specialists
56
Chart Data
Bunnings
22
Core $M
Mitre10
4
Market share
Enter Sales
Reece
4
Natbuild
3
Timber amp Building
10936
masters
3
Dahlsens
322
Lawrence amp Hanson
3
Hardware amp General
122
Home timber
2
Bowen
342
Tradelink
2
Banner
70
HBT
1
Stratco
70
Dahlsens
Other
10010
Plumbtec
Electrical
1650
online hardware retailers
Lawrence and hansen
925
Samios plumbing
Beacon
179
Middys
500
Other
46
Tools
2300
Total Tools
130
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
Other
2040
Paint
1700
Paint Right Ash 61 stores
140
Paint Place Ash 115stores
350
Other Ash Paint place - 115 locations aust wide
1210
Plumbing
5743
Reece
2085
Tradelink
1200
Plumbtec
500
Plumbers Supplies Co Op
143
Other
1815
Kitchen amp Bathroom
2550
Impala
Kitset
Other
2550
Garden
2250
Flower Power
70
Other
2180
Hardware
1200
Other
1200
Hardware amp General
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
5
HTH acquisition ndash now second largest in Hardware marketMetcash Hardware HTH Independent
DC Locations Qld Vic WA NSW (2) Vic WA QLD (1) Vic (1) WA (2) NSW (2)
Number of Employees (FTE) ~1000 ~1600 ~2600
~$2bn business with significant scale1 Year ended 30 April 2016 for Metcash Hardware Year ended 30 June 2016 for HTH 2 Stores held through 8 separate joint ventures3 Neither Metcash nor HTH have sole-supply agreements with unbannered stores Combined unbannered network excluding overlap is ~500 stores F
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Business Overview
For
per
sona
l use
onl
y
7
IHG management team
ANNETTE WELSH
Merchandise
CHRIS TSOTRA
Joint VenturesAlliance
ROBIN JOHNSTON
Commercial
RICK SOLA
Supply Chain amp LogisticsMarketing
DARREN MANNING
Operations Retail amp Trade
STUARTWILLINGHAM
Company Stores
Human Resources
RICHARD BROWN
CEO MARK LAIDLAW
KAREN FAHEY
For
per
sona
l use
onl
y
8
IHG ndash second largest player in Hardware market
Acquisition of HTH in October 2016o Now clear 2 in Hardware marketo Strengthened position in Trade segmento HTH and Mitre 10 complementary with limited
store overlap
Opportunity to roll out speciality offers such as plumbing tiling power garden equipment and flooring
Retail offer strengthened through addition of 41 HTH corporate stores to 53 Mitre 10 JV stores
Bunnings has consolidated the retail sector becoming the dominant player The trade market remains fragmented with traditional wholesalers competing against trade focused chains and specialists (eg Reece)
Mitre 10s brand is well positioned across both retail and trade segments of the $238B HI core market
Source Pittney Bowes amp Moore Stephens 2009Estimated Market Share based on internal assumptions
HI market intel Mar17
Competitive landscape
ampZampFampA ampD ampT
Dahlsens
Bowens
HTH Company
Reece
Tradelink
HBT
HTH
Masters
True Value
Small
Store Format
Large
Retail Focus
Trade Focus
Total Tools
Stratco
Landmark
Plumbtec
Thrifty Link
HampG
Swan Plumbing
Beaumont Tiles
Stihl
Mitre 10
M10 JV Stores
Hardings
Hudsons
Natbuild
Porters
By Category - Core
ampZampF
Garden
225
Kitchen amp Bathroom
25499999999999998Hardware
12Plumbing (incl Fashion Tapeware amp Acc)
56Paint
17Tools
22999999999999998Electrical
165Timber amp Building
1075
Total Core HI Sales
By Category
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
Traditionally Mitre10 plays in the $28bn market dominated by two distinct consumer types Retail (DIY) and Trade The Trade Market is highly fragmented with un-bannered independents garnering 59
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade The Trade market is highly fragmented with unbannered independents amp specialists garnering 78 of the market
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
Other
61149
64
2234799
35
4722
67
2415
79
Sheet2
Sheet3
Sheet1
Growth Opportunity
Sheet4
HI as a picture
Sheet6
Sheet5
image1emf
image2png
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image4jpeg
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image15jpeg
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image17jpeg
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image7gif
image8jpeg
image9jpeg
image10png
image11jpeg
image12gif
image13jpeg
image14jpeg
image28jpeg
image29jpeg
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image24png
image25jpeg
image26jpeg
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image35jpeg
image36png
image37png
image38png
9
IHG brands
Key customers stores IHG sales
Iconic independent and local network Operates in both Trade and DIY segments Customers include national residential builders through to local handy-man 306 47
Strong focus on Trade segment and home builders Mix of independently owned and company-owned stores Customers include national residential builders through to local handy-man 246 37
ldquoYour local hardware storerdquo National hardware chain with small format stores Services metro and regional communities 126 2
ldquoMaking hardware easyrdquo National hardware chain with small format stores Services metro and regional communities across Australia 67 1
Supplier of quality lsquofront of wallrsquo plumbing (bathrooms kitchens appliances) 6 outlets across Melbourne Brisbane Adelaide and surrounding areas Customer base gt90 trade 5 5
~500 unbannered stores contribute ~8 of total sales
Brands
For
per
sona
l use
onl
y
10
An extensive national footprint
StateMitre
10stores
HTHstores
Totalstores DCs
NSW 81 104 185 2
QLD 113 68 181 1
SA NT 60 37 97
TAS 14 14 28
VIC 71 103 174 1
WA 34 51 85 2
TOTAL 373 377 750 6
HTH store footprint is complementary to Mitre 10 ndash limited overlap
DCs will reduce from 7 to 6 (South Dandenong to close) ndash delivers synergy benefits
Currently 2 South Dandenong DC to be closed in April
1
2
113
81
71
34
14
60
14
51
37
68 1
104 2
103
For
per
sona
l use
onl
y
11
679
71
Independent Majority owned or Company-owned
IHG committed to ldquoSuccessful Independentsrdquo
750 bannered stores Successful Independents is key focus Independent store owners gt90 of IHG
network Company-owned stores are an important
component of the Hardware business 53 Mitre 10 JV stores (30 majority owned) 41 Company-owned stores added through
HTH acquisition supported by a strong and experienced management team Hardware offer extended through addition of
stores such as Hardings Hardware and TaitTimber Location of Independent and Company-
owned stores are complementary with minimal conflict sites F
or p
erso
nal u
se o
nly
12
~60~40
IHG
Trade Retail
Strengthened position in Trade segment
Proportion of Trade sales increased from ~55 to ~60 through HTH acquisition
Attractive service offer ldquoGet in get out get on with itrdquo and ldquoGo where the Tradies gordquo
Focus on delivering what Tradies wanto Low cost and transparento Rapid response from order to delivery (DIFOT)o Timber undercovero Relationship at all touch pointso Trade drive through and separate Trade desko Early opening clean facilities coffeeo Investment in technology to improve efficiency
~55~45
Mitre 10
~62~38
HTH
Sales mix
Based on sales for year ended 30 April 2016 for Metcash Hardware and 30 June 2016 for HTH For
per
sona
l use
onl
y
13
Consumer led strategy
SHOPPER LED RANGE amp COMPETITIVE PRICING
BUILD TRADE
DIGITALDATA INSIGHTS
WORKING SMARTER
BEST STORE IN TOWN
SAPPHIRE PROGRAM
Good progress across all Mitre 10 stores
HTH opportunities identified
Combined the best of both to make a better businessFor
per
sona
l use
onl
y
Annette WelshGM ndash Merchandise
Key strategic initiatives
For
per
sona
l use
onl
y
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
l use
onl
y
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
15
16
17
18
18
19
63
684768
741389754
7999159334
81511433614
87674603678
42
42798
43611162
44439774078
452841297855
461445282514
1019
1019
1019
1019
1019
FY12
FY13
FY14
FY15
FY16
FY17
Hardware
Home Improvement
Large Big Box
Small to Medium
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
46 stores x25M
16 Trade
6 of overall biz
36 stores x 10m
Updated Aug 2016
Market Share Calculation
Market Share Calculation
Market Share Calculation
Source CLSA 5814
Source CLSA 5814
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Wesfarmers
Wesfarmers
Bunnings
6078
245
Bunnings
1232
479
Bunnings
7310
145
Blackwoods
0
000
Blackwoods
50
019
Blackwoods
50
01
Bunnings
6078
2450
Bunnings
1282
499
Bunnings
7360
146
Woolworths
Woolworths
Woolworths
Masters
723
291
Masters
38
015
Masters
761
15
Home Timber amp Hardware
381
154
Home Timber amp Hardware
381
148
Home Timber amp Hardware
762
15
company owned
69
028
company owned
305
119
company owned
374
07
Gunns
10
004
Gunns
59
023
Gunns
69
01
Becks
12
005
Becks
36
014
Becks
48
01
Magnet Mart
24
010
Magnet Mart
36
014
Magnet Mart
60
01
Flatmans
4
002
Flatmans
21
008
Flatmans
25
00
Taits
5
002
Taits
49
019
Taits
54
01
Mittagong
3
001
Mittagong
23
009
Mittagong
26
01
Hardings
11
004
Hardings
61
024
Hardings
72
01
FAW Building
0
000
FAW Building
20
008
FAW Building
20
00
wholesale customers
480
193
wholesale customers
116
045
wholesale customers
596
12
Woolworths Other
618
249
Woolworths Other
726
283
Woolworths Other
1344
27
Metcash
Metcash
Metcash
Mitre 10 branded outlets
690
278
Mitre 10 branded outlets
810
315
Mitre 10 branded outlets
1500
30
Mitre 10 supplied independents
210
085
Mitre 10 supplied independents
90
035
Mitre 10 supplied independents
300
06
Mitre10
900
363
Mitre10
900
350
Mitre10
1800
36
Specialist Plumbing
274
110
Specialist Plumbing
2284
889
Specialist Plumbing
2558
506
Reece
219
088
Reece
1239
482
Reece
1458
29
Tradelink
55
022
Tradelink
1045
407
Tradelink
1100
22
Specialist Paint
255
103
Specialist Paint
1021
397
Specialist Paint
1276
25
Dulux
22
009
Dulux
89
035
Dulux
111
02
Inspirations
73
029
Inspirations
292
114
Inspirations
365
07
Paint Place
60
024
Paint Place
240
093
Paint Place
300
06
Bristol
60
024
Bristol
240
093
Bristol
300
06
Solver Decorator Centre
20
008
Solver Decorator Centre
80
031
Solver Decorator Centre
100
02
Wattyl Trade Paint Centre
20
008
Wattyl Trade Paint Centre
80
031
Wattyl Trade Paint Centre
100
02
Specialist Hardware
142
06
Specialist Hardware
568
22
Specialist Hardware
710
14
Hardware amp Building Traders (HBT)
86
035
Hardware amp Building Traders (HBT)
344
134
Hardware amp Building Traders (HBT)
430
09
Bowens
24
010
Bowens
96
037
Bowens
120
02
Swadling Group
12
005
Swadling Group
48
019
Swadling Group
60
01
Hardware amp General
20
008
Hardware amp General
80
031
Hardware amp General
100
02
Specialist Other
900
36
Specialist Other
627
24
Specialist Other
1527
30
Total Tools
35
014
Total Tools
81
032
Total Tools
116
02
Stratco
100
040
Stratco
100
039
Stratco
200
04
Barbeques Galore
200
081
Barbeques Galore
0
000
Barbeques Galore
200
04
Carpet Call
160
064
Carpet Call
40
016
Carpet Call
200
04
Outdoor Furniture Specialists
70
028
Outdoor Furniture Specialists
0
000
Outdoor Furniture Specialists
70
01
Beacon Lighting
143
058
Beacon Lighting
8
003
Beacon Lighting
151
03
Howards Storage World
90
036
Howards Storage World
0
000
Howards Storage World
90
02
Gyprock Trade
0
000
Gyprock Trade
260
101
Gyprock Trade
260
05
Flower Power
95
038
Flower Power
5
002
Flower Power
100
02
Stegbar
7
003
Stegbar
133
052
Stegbar
140
03
Big Box Other
626
25
Big Box Other
2145
83
Big Box Other
2771
55
IKEA
233
094
IKEA
0
000
IKEA
233
05
Supermarkets
152
061
Supermarkets
0
000
Supermarkets
152
03
Discount department stores
241
097
Discount department stores
0
000
Discount department stores
241
05
Direct delivery from supplier
0
000
Direct delivery from supplier
2145
835
Direct delivery from supplier
2145
42
Other
13094
5278
Other
11782
4585
Other
24876
493
Grand Total
24810
10000
Grand Total
25696
10000
Grand Total
50506
1000
23922
21449
45371
888
4247
5135
Other (original)
13644
5499
Other (original)
12203
4749
Other (original)
25847
512
Adjustment
-550
Adjustment
-421
Adjustment
-971
net
13094
net
11782
net
24876
Bunnings
Masters
Home Timber amp Hardware
Woolworths Other
Mitre10
Specialist Plumbing
Specialist Paint
Specialist Hardware
Specialist Other
Big Box Other
Other
Market Share Calculation
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Bunnings
6078
254
1232
574
7310
161
Blackwoods
0
000
50
023
50
01
6078
2541
1282
598
7360
162
Woolworths
Masters
723
302
38
018
761
17
Home Timber amp Hardware
381
159
381
178
762
17
company owned
69
029
305
142
374
08
Gunns
10
004
59
028
69
02
Becks
12
005
36
017
48
01
Magnet Mart
24
010
36
017
60
01
Flatmans
4
002
21
010
25
01
Taits
5
002
49
023
54
01
Mittagong
3
001
23
011
26
01
Hardings
11
005
61
028
72
02
FAW Building
0
000
20
009
20
00
wholesale customers
480
201
116
054
596
13
1653
691
840
392
2493
55
Metcash
Mitre 10 branded outlets
690
288
810
378
1500
33
Mitre 10 supplied independents
210
088
90
042
300
07
900
376
900
420
1800
40
Specialist Plumbing
Reece
219
092
1239
578
1458
32
Tradelink
55
023
1045
487
1100
24
Specialist Paint
Dulux
22
009
89
041
111
02
Inspirations
73
031
292
136
365
08
Paint Place
60
025
240
112
300
07
Bristol
60
025
240
112
300
07
Solver Decorator Centre
20
008
80
037
100
02
Wattyl Trade Paint Centre
20
008
80
037
100
02
Specialist Hardware
Hardware amp Building Traders (HBT)
86
036
344
160
430
09
Bowens
24
010
96
045
120
03
Swadling Group
12
005
48
022
60
01
Hardware amp General
20
008
80
037
100
02
Specialist Other
Total Tools
35
015
81
038
116
03
Stratco
100
042
100
047
200
04
Barbeques Galore
200
084
0
000
200
04
Carpet Call
160
067
40
019
200
04
Outdoor Furniture Specialists
70
029
0
000
70
02
Beacon Lighting
143
060
8
004
151
03
Howards Storage World
90
038
0
000
90
02
Gyprock Trade
0
000
260
121
260
06
Flower Power
95
040
5
002
100
02
Stegbar
7
003
133
062
140
03
Big Box Other
IKEA
233
097
0
000
233
05
Supermarkets
152
064
0
000
152
03
Discount department stores
241
101
0
000
241
05
Direct delivery from supplier
0
000
2145
1000
2145
47
Other
13094
5474
11782
5493
24876
548
Grand Total
23922
10000
21449
10000
45371
1000
23922
21449
45371
- 0
- 0
- 0
Other (original)
13644
5704
12203
5689
25847
570
Adjustment
-550
-421
-971
net
13094
11782
24876
Original
Current
42000
8600
10800
4400
4700
12200
42000
8600
10800
4400
4700
12200
Aus
Retail
Trade
Plumbing
White goods
Consumer
Aus
Retail
Trade
Plumbing
White goods
Consumer
Retail
Trade
Plumbing
White goods
Consumer
Bunnings
6490
4280
1000
280
80
850
7360
6078
1282
4854
1134
318
91
964
- 0
Mitre10
1720
880
550
60
30
200
1800
900
900
921
576
63
31
209
Reece
1500
1500
1458
219
1239
- 0
- 0
1458
- 0
- 0
Lawerence amp Hanson
1000
200
800
- 0
- 0
- 0
- 0
- 0
- 0
Tradelink
900
900
1100
55
1045
- 0
- 0
1100
- 0
- 0
DanksMasters
850
380
280
60
30
100
1523
1104
419
681
502
108
54
179
Harvey Norman
800
750
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbtec
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Good Guys
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Middys
500
100
400
- 0
- 0
- 0
- 0
- 0
- 0
Dahlsens
430
80
300
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbing Plus
400
400
- 0
- 0
- 0
- 0
- 0
- 0
BBQ Galore
250
250
200
- 0
200
- 0
- 0
- 0
- 0
200
Betta
250
250
- 0
- 0
- 0
- 0
- 0
- 0
Bowens
250
50
200
- 0
- 0
- 0
- 0
- 0
- 0
Total Tools
200
200
- 0
- 0
- 0
- 0
- 0
- 0
Paint Right
200
70
130
- 0
- 0
- 0
- 0
- 0
- 0
Beacon Lighting
200
150
50
- 0
- 0
- 0
- 0
- 0
- 0
Paint Place
150
50
100
- 0
- 0
- 0
- 0
- 0
- 0
Flower Power
150
150
- 0
- 0
- 0
- 0
- 0
- 0
Banner
90
20
70
- 0
- 0
- 0
- 0
- 0
- 0
Straco
80
80
- 0
- 0
- 0
- 0
- 0
- 0
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
HTH - FEB16
HTH - FEB17
Trade
Trade
Retail
Trade
HTH Indep
7500
510
3825
3675
51
HTH Co Owned
4500
800
3600
900
80
00
12000
62
7425
4575
62
M10 - FEB16
M10 - FEB17
Trade
Trade
Retail
Trade
M10 wholes
9750
570
5558
4193
57
00
9750
5558
4193
57
CORE HOME Improvement
Overall
Retail
Ret
Trade
Trade
Tot
Tot
Tot
Bunnings
780
68
170
10
950
34
180
18 ($95b)
Masters
078
7
030
2
108
4
40
4 ($11b)
HTH
046
4
074
4
120
4
40
4 ($12b)
M10
088
8
090
5
178
6
40
4 ($18b)
Reece
025
2
180
11
205
7
32
3 ($21b)
Tradelink
007
1
070
4
077
3
24
2 ($08b)
Dahlsens
040
2
040
1
05
1 ($04b)
Plumbtec
050
3
050
2
05
1 ($05b)
0
0
0
00
0 ($00b)
Other
130
11
970
58
1100
39
634
63 ($110b)
1154
100
1674
100
2828
100
1000
115b
18
167b
283b
56
1472
1472 ($283bb)
28b
74
Waterfall data input
Invisible
Final
Minus
Plus
Base
Retail
115
Trade
115
167
Core HI
283
Extended HI
283
1315
132b
Whitegoods
414
485
49b
Total Market
463
463b
Chart Data
Sales amp EBIT (from annual report)
HW Market
HW Retail
Core $M
FY15
FY14
FY13
Market share
Enter Sales
market
Chart
SALES
GROWTH
EBIT
EBIT
SALES
GROWTH
EBIT
EBIT
SALES
EBIT
EBIT
Retail
Entry
Garden
23
Core
90
20
Timber amp Building
10750
108
Kitchen amp Bathroom
26
Core
90
23
Dahlsens
350
33
350M
Hardware
12
Core
60
07
Bowen
250
23
250M
Plumbing (incl Fashion Tapeware amp Acc)
56
Core
25
14
Banner
70
07
70M
Paint
17
Core
60
10
Stratco
70
07
70M
Tools
23
Core
55
13
Other
10010
1
10010M
Electrical
17
Core
55
09
Electrical
1650
17
Timber amp Building
108
Core
0
00
Lawrence and hansen
925
561
925M
Core
280
96
Beacon
179
108
179M
179
Washing Machine amp Dryers
24
Whitegoods
24
Middys
500
303
500M
Fridges Freezer amp Dishwashers
26
Whitegoods
26
Other
46
28
46M
Whitegoods
50
50
Tools
2300
23
Other
27
Extended
27
Total Tools
130
57
130M
Camping Equip amp Storage
12
Extended
12
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
57
130M
128
Home Decor amp Craft
19
Extended
19
Other
2040
887
2040M
Small Appliances
24
Extended
24
Paint
1700
17
Flooring amp Covers
26
Extended
26
Paint Right Ash 61 stores
140
82
140M
BBQ amp Outdoor Furniture
10
Extended
10
Paint Place Ash 115stores
350
206
350M
Kitchen Appliances
13
Extended
13
Other Ash Paint place - 115 locations aust wide
1210
712
1210M
Extended
131
131
Plumbing
5600
56
461
277
Reece
2085
372 Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
2085M
2085
175
1775
Tradelink
1200
214
1200M
1200 Ash FY15 sales drop of 11 on Fy14
Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
Ash 61 stores
Ash 115stores
Ash Paint place - 115 locations aust wide
Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
To compile the list IBISWorld gathered data through primary research ASIC-lodged company reports and its own appraisals of company revenue based on historic data and industry analysis
Read more httpwwwafrcomleadershipbrw-liststop-500-private-companiesafr-top-500-private-companies-20160828-gr2zytixzz4acFaFxWv
Source - DGC Advisory Market report - AUG16
Corp amp independent Specialists
56
Chart Data
Bunnings
22
Core $M
Mitre10
4
Market share
Enter Sales
Reece
4
Natbuild
3
Timber amp Building
10936
masters
3
Dahlsens
322
Lawrence amp Hanson
3
Hardware amp General
122
Home timber
2
Bowen
342
Tradelink
2
Banner
70
HBT
1
Stratco
70
Dahlsens
Other
10010
Plumbtec
Electrical
1650
online hardware retailers
Lawrence and hansen
925
Samios plumbing
Beacon
179
Middys
500
Other
46
Tools
2300
Total Tools
130
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
Other
2040
Paint
1700
Paint Right Ash 61 stores
140
Paint Place Ash 115stores
350
Other Ash Paint place - 115 locations aust wide
1210
Plumbing
5743
Reece
2085
Tradelink
1200
Plumbtec
500
Plumbers Supplies Co Op
143
Other
1815
Kitchen amp Bathroom
2550
Impala
Kitset
Other
2550
Garden
2250
Flower Power
70
Other
2180
Hardware
1200
Other
1200
Hardware amp General
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
Mark LaidlawCEO Independent Hardware Group
Business Overview
For
per
sona
l use
onl
y
7
IHG management team
ANNETTE WELSH
Merchandise
CHRIS TSOTRA
Joint VenturesAlliance
ROBIN JOHNSTON
Commercial
RICK SOLA
Supply Chain amp LogisticsMarketing
DARREN MANNING
Operations Retail amp Trade
STUARTWILLINGHAM
Company Stores
Human Resources
RICHARD BROWN
CEO MARK LAIDLAW
KAREN FAHEY
For
per
sona
l use
onl
y
8
IHG ndash second largest player in Hardware market
Acquisition of HTH in October 2016o Now clear 2 in Hardware marketo Strengthened position in Trade segmento HTH and Mitre 10 complementary with limited
store overlap
Opportunity to roll out speciality offers such as plumbing tiling power garden equipment and flooring
Retail offer strengthened through addition of 41 HTH corporate stores to 53 Mitre 10 JV stores
Bunnings has consolidated the retail sector becoming the dominant player The trade market remains fragmented with traditional wholesalers competing against trade focused chains and specialists (eg Reece)
Mitre 10s brand is well positioned across both retail and trade segments of the $238B HI core market
Source Pittney Bowes amp Moore Stephens 2009Estimated Market Share based on internal assumptions
HI market intel Mar17
Competitive landscape
ampZampFampA ampD ampT
Dahlsens
Bowens
HTH Company
Reece
Tradelink
HBT
HTH
Masters
True Value
Small
Store Format
Large
Retail Focus
Trade Focus
Total Tools
Stratco
Landmark
Plumbtec
Thrifty Link
HampG
Swan Plumbing
Beaumont Tiles
Stihl
Mitre 10
M10 JV Stores
Hardings
Hudsons
Natbuild
Porters
By Category - Core
ampZampF
Garden
225
Kitchen amp Bathroom
25499999999999998Hardware
12Plumbing (incl Fashion Tapeware amp Acc)
56Paint
17Tools
22999999999999998Electrical
165Timber amp Building
1075
Total Core HI Sales
By Category
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
Traditionally Mitre10 plays in the $28bn market dominated by two distinct consumer types Retail (DIY) and Trade The Trade Market is highly fragmented with un-bannered independents garnering 59
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade The Trade market is highly fragmented with unbannered independents amp specialists garnering 78 of the market
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
Other
61149
64
2234799
35
4722
67
2415
79
Sheet2
Sheet3
Sheet1
Growth Opportunity
Sheet4
HI as a picture
Sheet6
Sheet5
image1emf
image2png
image3png
image4jpeg
image5jpeg
image6png
image15jpeg
image16jpeg
image17jpeg
image18jpeg
image19jpeg
image20jpeg
image21jpeg
image22jpeg
image23jpeg
image7gif
image8jpeg
image9jpeg
image10png
image11jpeg
image12gif
image13jpeg
image14jpeg
image28jpeg
image29jpeg
image30jpeg
image24png
image25jpeg
image26jpeg
image27jpeg
image31png
image32jpeg
image33png
image34png
image35jpeg
image36png
image37png
image38png
9
IHG brands
Key customers stores IHG sales
Iconic independent and local network Operates in both Trade and DIY segments Customers include national residential builders through to local handy-man 306 47
Strong focus on Trade segment and home builders Mix of independently owned and company-owned stores Customers include national residential builders through to local handy-man 246 37
ldquoYour local hardware storerdquo National hardware chain with small format stores Services metro and regional communities 126 2
ldquoMaking hardware easyrdquo National hardware chain with small format stores Services metro and regional communities across Australia 67 1
Supplier of quality lsquofront of wallrsquo plumbing (bathrooms kitchens appliances) 6 outlets across Melbourne Brisbane Adelaide and surrounding areas Customer base gt90 trade 5 5
~500 unbannered stores contribute ~8 of total sales
Brands
For
per
sona
l use
onl
y
10
An extensive national footprint
StateMitre
10stores
HTHstores
Totalstores DCs
NSW 81 104 185 2
QLD 113 68 181 1
SA NT 60 37 97
TAS 14 14 28
VIC 71 103 174 1
WA 34 51 85 2
TOTAL 373 377 750 6
HTH store footprint is complementary to Mitre 10 ndash limited overlap
DCs will reduce from 7 to 6 (South Dandenong to close) ndash delivers synergy benefits
Currently 2 South Dandenong DC to be closed in April
1
2
113
81
71
34
14
60
14
51
37
68 1
104 2
103
For
per
sona
l use
onl
y
11
679
71
Independent Majority owned or Company-owned
IHG committed to ldquoSuccessful Independentsrdquo
750 bannered stores Successful Independents is key focus Independent store owners gt90 of IHG
network Company-owned stores are an important
component of the Hardware business 53 Mitre 10 JV stores (30 majority owned) 41 Company-owned stores added through
HTH acquisition supported by a strong and experienced management team Hardware offer extended through addition of
stores such as Hardings Hardware and TaitTimber Location of Independent and Company-
owned stores are complementary with minimal conflict sites F
or p
erso
nal u
se o
nly
12
~60~40
IHG
Trade Retail
Strengthened position in Trade segment
Proportion of Trade sales increased from ~55 to ~60 through HTH acquisition
Attractive service offer ldquoGet in get out get on with itrdquo and ldquoGo where the Tradies gordquo
Focus on delivering what Tradies wanto Low cost and transparento Rapid response from order to delivery (DIFOT)o Timber undercovero Relationship at all touch pointso Trade drive through and separate Trade desko Early opening clean facilities coffeeo Investment in technology to improve efficiency
~55~45
Mitre 10
~62~38
HTH
Sales mix
Based on sales for year ended 30 April 2016 for Metcash Hardware and 30 June 2016 for HTH For
per
sona
l use
onl
y
13
Consumer led strategy
SHOPPER LED RANGE amp COMPETITIVE PRICING
BUILD TRADE
DIGITALDATA INSIGHTS
WORKING SMARTER
BEST STORE IN TOWN
SAPPHIRE PROGRAM
Good progress across all Mitre 10 stores
HTH opportunities identified
Combined the best of both to make a better businessFor
per
sona
l use
onl
y
Annette WelshGM ndash Merchandise
Key strategic initiatives
For
per
sona
l use
onl
y
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
l use
onl
y
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
15
16
17
18
18
19
63
684768
741389754
7999159334
81511433614
87674603678
42
42798
43611162
44439774078
452841297855
461445282514
1019
1019
1019
1019
1019
FY12
FY13
FY14
FY15
FY16
FY17
Hardware
Home Improvement
Large Big Box
Small to Medium
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
46 stores x25M
16 Trade
6 of overall biz
36 stores x 10m
Updated Aug 2016
Market Share Calculation
Market Share Calculation
Market Share Calculation
Source CLSA 5814
Source CLSA 5814
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Wesfarmers
Wesfarmers
Bunnings
6078
245
Bunnings
1232
479
Bunnings
7310
145
Blackwoods
0
000
Blackwoods
50
019
Blackwoods
50
01
Bunnings
6078
2450
Bunnings
1282
499
Bunnings
7360
146
Woolworths
Woolworths
Woolworths
Masters
723
291
Masters
38
015
Masters
761
15
Home Timber amp Hardware
381
154
Home Timber amp Hardware
381
148
Home Timber amp Hardware
762
15
company owned
69
028
company owned
305
119
company owned
374
07
Gunns
10
004
Gunns
59
023
Gunns
69
01
Becks
12
005
Becks
36
014
Becks
48
01
Magnet Mart
24
010
Magnet Mart
36
014
Magnet Mart
60
01
Flatmans
4
002
Flatmans
21
008
Flatmans
25
00
Taits
5
002
Taits
49
019
Taits
54
01
Mittagong
3
001
Mittagong
23
009
Mittagong
26
01
Hardings
11
004
Hardings
61
024
Hardings
72
01
FAW Building
0
000
FAW Building
20
008
FAW Building
20
00
wholesale customers
480
193
wholesale customers
116
045
wholesale customers
596
12
Woolworths Other
618
249
Woolworths Other
726
283
Woolworths Other
1344
27
Metcash
Metcash
Metcash
Mitre 10 branded outlets
690
278
Mitre 10 branded outlets
810
315
Mitre 10 branded outlets
1500
30
Mitre 10 supplied independents
210
085
Mitre 10 supplied independents
90
035
Mitre 10 supplied independents
300
06
Mitre10
900
363
Mitre10
900
350
Mitre10
1800
36
Specialist Plumbing
274
110
Specialist Plumbing
2284
889
Specialist Plumbing
2558
506
Reece
219
088
Reece
1239
482
Reece
1458
29
Tradelink
55
022
Tradelink
1045
407
Tradelink
1100
22
Specialist Paint
255
103
Specialist Paint
1021
397
Specialist Paint
1276
25
Dulux
22
009
Dulux
89
035
Dulux
111
02
Inspirations
73
029
Inspirations
292
114
Inspirations
365
07
Paint Place
60
024
Paint Place
240
093
Paint Place
300
06
Bristol
60
024
Bristol
240
093
Bristol
300
06
Solver Decorator Centre
20
008
Solver Decorator Centre
80
031
Solver Decorator Centre
100
02
Wattyl Trade Paint Centre
20
008
Wattyl Trade Paint Centre
80
031
Wattyl Trade Paint Centre
100
02
Specialist Hardware
142
06
Specialist Hardware
568
22
Specialist Hardware
710
14
Hardware amp Building Traders (HBT)
86
035
Hardware amp Building Traders (HBT)
344
134
Hardware amp Building Traders (HBT)
430
09
Bowens
24
010
Bowens
96
037
Bowens
120
02
Swadling Group
12
005
Swadling Group
48
019
Swadling Group
60
01
Hardware amp General
20
008
Hardware amp General
80
031
Hardware amp General
100
02
Specialist Other
900
36
Specialist Other
627
24
Specialist Other
1527
30
Total Tools
35
014
Total Tools
81
032
Total Tools
116
02
Stratco
100
040
Stratco
100
039
Stratco
200
04
Barbeques Galore
200
081
Barbeques Galore
0
000
Barbeques Galore
200
04
Carpet Call
160
064
Carpet Call
40
016
Carpet Call
200
04
Outdoor Furniture Specialists
70
028
Outdoor Furniture Specialists
0
000
Outdoor Furniture Specialists
70
01
Beacon Lighting
143
058
Beacon Lighting
8
003
Beacon Lighting
151
03
Howards Storage World
90
036
Howards Storage World
0
000
Howards Storage World
90
02
Gyprock Trade
0
000
Gyprock Trade
260
101
Gyprock Trade
260
05
Flower Power
95
038
Flower Power
5
002
Flower Power
100
02
Stegbar
7
003
Stegbar
133
052
Stegbar
140
03
Big Box Other
626
25
Big Box Other
2145
83
Big Box Other
2771
55
IKEA
233
094
IKEA
0
000
IKEA
233
05
Supermarkets
152
061
Supermarkets
0
000
Supermarkets
152
03
Discount department stores
241
097
Discount department stores
0
000
Discount department stores
241
05
Direct delivery from supplier
0
000
Direct delivery from supplier
2145
835
Direct delivery from supplier
2145
42
Other
13094
5278
Other
11782
4585
Other
24876
493
Grand Total
24810
10000
Grand Total
25696
10000
Grand Total
50506
1000
23922
21449
45371
888
4247
5135
Other (original)
13644
5499
Other (original)
12203
4749
Other (original)
25847
512
Adjustment
-550
Adjustment
-421
Adjustment
-971
net
13094
net
11782
net
24876
Bunnings
Masters
Home Timber amp Hardware
Woolworths Other
Mitre10
Specialist Plumbing
Specialist Paint
Specialist Hardware
Specialist Other
Big Box Other
Other
Market Share Calculation
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Bunnings
6078
254
1232
574
7310
161
Blackwoods
0
000
50
023
50
01
6078
2541
1282
598
7360
162
Woolworths
Masters
723
302
38
018
761
17
Home Timber amp Hardware
381
159
381
178
762
17
company owned
69
029
305
142
374
08
Gunns
10
004
59
028
69
02
Becks
12
005
36
017
48
01
Magnet Mart
24
010
36
017
60
01
Flatmans
4
002
21
010
25
01
Taits
5
002
49
023
54
01
Mittagong
3
001
23
011
26
01
Hardings
11
005
61
028
72
02
FAW Building
0
000
20
009
20
00
wholesale customers
480
201
116
054
596
13
1653
691
840
392
2493
55
Metcash
Mitre 10 branded outlets
690
288
810
378
1500
33
Mitre 10 supplied independents
210
088
90
042
300
07
900
376
900
420
1800
40
Specialist Plumbing
Reece
219
092
1239
578
1458
32
Tradelink
55
023
1045
487
1100
24
Specialist Paint
Dulux
22
009
89
041
111
02
Inspirations
73
031
292
136
365
08
Paint Place
60
025
240
112
300
07
Bristol
60
025
240
112
300
07
Solver Decorator Centre
20
008
80
037
100
02
Wattyl Trade Paint Centre
20
008
80
037
100
02
Specialist Hardware
Hardware amp Building Traders (HBT)
86
036
344
160
430
09
Bowens
24
010
96
045
120
03
Swadling Group
12
005
48
022
60
01
Hardware amp General
20
008
80
037
100
02
Specialist Other
Total Tools
35
015
81
038
116
03
Stratco
100
042
100
047
200
04
Barbeques Galore
200
084
0
000
200
04
Carpet Call
160
067
40
019
200
04
Outdoor Furniture Specialists
70
029
0
000
70
02
Beacon Lighting
143
060
8
004
151
03
Howards Storage World
90
038
0
000
90
02
Gyprock Trade
0
000
260
121
260
06
Flower Power
95
040
5
002
100
02
Stegbar
7
003
133
062
140
03
Big Box Other
IKEA
233
097
0
000
233
05
Supermarkets
152
064
0
000
152
03
Discount department stores
241
101
0
000
241
05
Direct delivery from supplier
0
000
2145
1000
2145
47
Other
13094
5474
11782
5493
24876
548
Grand Total
23922
10000
21449
10000
45371
1000
23922
21449
45371
- 0
- 0
- 0
Other (original)
13644
5704
12203
5689
25847
570
Adjustment
-550
-421
-971
net
13094
11782
24876
Original
Current
42000
8600
10800
4400
4700
12200
42000
8600
10800
4400
4700
12200
Aus
Retail
Trade
Plumbing
White goods
Consumer
Aus
Retail
Trade
Plumbing
White goods
Consumer
Retail
Trade
Plumbing
White goods
Consumer
Bunnings
6490
4280
1000
280
80
850
7360
6078
1282
4854
1134
318
91
964
- 0
Mitre10
1720
880
550
60
30
200
1800
900
900
921
576
63
31
209
Reece
1500
1500
1458
219
1239
- 0
- 0
1458
- 0
- 0
Lawerence amp Hanson
1000
200
800
- 0
- 0
- 0
- 0
- 0
- 0
Tradelink
900
900
1100
55
1045
- 0
- 0
1100
- 0
- 0
DanksMasters
850
380
280
60
30
100
1523
1104
419
681
502
108
54
179
Harvey Norman
800
750
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbtec
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Good Guys
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Middys
500
100
400
- 0
- 0
- 0
- 0
- 0
- 0
Dahlsens
430
80
300
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbing Plus
400
400
- 0
- 0
- 0
- 0
- 0
- 0
BBQ Galore
250
250
200
- 0
200
- 0
- 0
- 0
- 0
200
Betta
250
250
- 0
- 0
- 0
- 0
- 0
- 0
Bowens
250
50
200
- 0
- 0
- 0
- 0
- 0
- 0
Total Tools
200
200
- 0
- 0
- 0
- 0
- 0
- 0
Paint Right
200
70
130
- 0
- 0
- 0
- 0
- 0
- 0
Beacon Lighting
200
150
50
- 0
- 0
- 0
- 0
- 0
- 0
Paint Place
150
50
100
- 0
- 0
- 0
- 0
- 0
- 0
Flower Power
150
150
- 0
- 0
- 0
- 0
- 0
- 0
Banner
90
20
70
- 0
- 0
- 0
- 0
- 0
- 0
Straco
80
80
- 0
- 0
- 0
- 0
- 0
- 0
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
HTH - FEB16
HTH - FEB17
Trade
Trade
Retail
Trade
HTH Indep
7500
510
3825
3675
51
HTH Co Owned
4500
800
3600
900
80
00
12000
62
7425
4575
62
M10 - FEB16
M10 - FEB17
Trade
Trade
Retail
Trade
M10 wholes
9750
570
5558
4193
57
00
9750
5558
4193
57
CORE HOME Improvement
Overall
Retail
Ret
Trade
Trade
Tot
Tot
Tot
Bunnings
780
68
170
10
950
34
180
18 ($95b)
Masters
078
7
030
2
108
4
40
4 ($11b)
HTH
046
4
074
4
120
4
40
4 ($12b)
M10
088
8
090
5
178
6
40
4 ($18b)
Reece
025
2
180
11
205
7
32
3 ($21b)
Tradelink
007
1
070
4
077
3
24
2 ($08b)
Dahlsens
040
2
040
1
05
1 ($04b)
Plumbtec
050
3
050
2
05
1 ($05b)
0
0
0
00
0 ($00b)
Other
130
11
970
58
1100
39
634
63 ($110b)
1154
100
1674
100
2828
100
1000
115b
18
167b
283b
56
1472
1472 ($283bb)
28b
74
Waterfall data input
Invisible
Final
Minus
Plus
Base
Retail
115
Trade
115
167
Core HI
283
Extended HI
283
1315
132b
Whitegoods
414
485
49b
Total Market
463
463b
Chart Data
Sales amp EBIT (from annual report)
HW Market
HW Retail
Core $M
FY15
FY14
FY13
Market share
Enter Sales
market
Chart
SALES
GROWTH
EBIT
EBIT
SALES
GROWTH
EBIT
EBIT
SALES
EBIT
EBIT
Retail
Entry
Garden
23
Core
90
20
Timber amp Building
10750
108
Kitchen amp Bathroom
26
Core
90
23
Dahlsens
350
33
350M
Hardware
12
Core
60
07
Bowen
250
23
250M
Plumbing (incl Fashion Tapeware amp Acc)
56
Core
25
14
Banner
70
07
70M
Paint
17
Core
60
10
Stratco
70
07
70M
Tools
23
Core
55
13
Other
10010
1
10010M
Electrical
17
Core
55
09
Electrical
1650
17
Timber amp Building
108
Core
0
00
Lawrence and hansen
925
561
925M
Core
280
96
Beacon
179
108
179M
179
Washing Machine amp Dryers
24
Whitegoods
24
Middys
500
303
500M
Fridges Freezer amp Dishwashers
26
Whitegoods
26
Other
46
28
46M
Whitegoods
50
50
Tools
2300
23
Other
27
Extended
27
Total Tools
130
57
130M
Camping Equip amp Storage
12
Extended
12
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
57
130M
128
Home Decor amp Craft
19
Extended
19
Other
2040
887
2040M
Small Appliances
24
Extended
24
Paint
1700
17
Flooring amp Covers
26
Extended
26
Paint Right Ash 61 stores
140
82
140M
BBQ amp Outdoor Furniture
10
Extended
10
Paint Place Ash 115stores
350
206
350M
Kitchen Appliances
13
Extended
13
Other Ash Paint place - 115 locations aust wide
1210
712
1210M
Extended
131
131
Plumbing
5600
56
461
277
Reece
2085
372 Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
2085M
2085
175
1775
Tradelink
1200
214
1200M
1200 Ash FY15 sales drop of 11 on Fy14
Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
Ash 61 stores
Ash 115stores
Ash Paint place - 115 locations aust wide
Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
To compile the list IBISWorld gathered data through primary research ASIC-lodged company reports and its own appraisals of company revenue based on historic data and industry analysis
Read more httpwwwafrcomleadershipbrw-liststop-500-private-companiesafr-top-500-private-companies-20160828-gr2zytixzz4acFaFxWv
Source - DGC Advisory Market report - AUG16
Corp amp independent Specialists
56
Chart Data
Bunnings
22
Core $M
Mitre10
4
Market share
Enter Sales
Reece
4
Natbuild
3
Timber amp Building
10936
masters
3
Dahlsens
322
Lawrence amp Hanson
3
Hardware amp General
122
Home timber
2
Bowen
342
Tradelink
2
Banner
70
HBT
1
Stratco
70
Dahlsens
Other
10010
Plumbtec
Electrical
1650
online hardware retailers
Lawrence and hansen
925
Samios plumbing
Beacon
179
Middys
500
Other
46
Tools
2300
Total Tools
130
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
Other
2040
Paint
1700
Paint Right Ash 61 stores
140
Paint Place Ash 115stores
350
Other Ash Paint place - 115 locations aust wide
1210
Plumbing
5743
Reece
2085
Tradelink
1200
Plumbtec
500
Plumbers Supplies Co Op
143
Other
1815
Kitchen amp Bathroom
2550
Impala
Kitset
Other
2550
Garden
2250
Flower Power
70
Other
2180
Hardware
1200
Other
1200
Hardware amp General
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
7
IHG management team
ANNETTE WELSH
Merchandise
CHRIS TSOTRA
Joint VenturesAlliance
ROBIN JOHNSTON
Commercial
RICK SOLA
Supply Chain amp LogisticsMarketing
DARREN MANNING
Operations Retail amp Trade
STUARTWILLINGHAM
Company Stores
Human Resources
RICHARD BROWN
CEO MARK LAIDLAW
KAREN FAHEY
For
per
sona
l use
onl
y
8
IHG ndash second largest player in Hardware market
Acquisition of HTH in October 2016o Now clear 2 in Hardware marketo Strengthened position in Trade segmento HTH and Mitre 10 complementary with limited
store overlap
Opportunity to roll out speciality offers such as plumbing tiling power garden equipment and flooring
Retail offer strengthened through addition of 41 HTH corporate stores to 53 Mitre 10 JV stores
Bunnings has consolidated the retail sector becoming the dominant player The trade market remains fragmented with traditional wholesalers competing against trade focused chains and specialists (eg Reece)
Mitre 10s brand is well positioned across both retail and trade segments of the $238B HI core market
Source Pittney Bowes amp Moore Stephens 2009Estimated Market Share based on internal assumptions
HI market intel Mar17
Competitive landscape
ampZampFampA ampD ampT
Dahlsens
Bowens
HTH Company
Reece
Tradelink
HBT
HTH
Masters
True Value
Small
Store Format
Large
Retail Focus
Trade Focus
Total Tools
Stratco
Landmark
Plumbtec
Thrifty Link
HampG
Swan Plumbing
Beaumont Tiles
Stihl
Mitre 10
M10 JV Stores
Hardings
Hudsons
Natbuild
Porters
By Category - Core
ampZampF
Garden
225
Kitchen amp Bathroom
25499999999999998Hardware
12Plumbing (incl Fashion Tapeware amp Acc)
56Paint
17Tools
22999999999999998Electrical
165Timber amp Building
1075
Total Core HI Sales
By Category
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
Traditionally Mitre10 plays in the $28bn market dominated by two distinct consumer types Retail (DIY) and Trade The Trade Market is highly fragmented with un-bannered independents garnering 59
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade The Trade market is highly fragmented with unbannered independents amp specialists garnering 78 of the market
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
Other
61149
64
2234799
35
4722
67
2415
79
Sheet2
Sheet3
Sheet1
Growth Opportunity
Sheet4
HI as a picture
Sheet6
Sheet5
image1emf
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image22jpeg
image23jpeg
image7gif
image8jpeg
image9jpeg
image10png
image11jpeg
image12gif
image13jpeg
image14jpeg
image28jpeg
image29jpeg
image30jpeg
image24png
image25jpeg
image26jpeg
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image31png
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image35jpeg
image36png
image37png
image38png
9
IHG brands
Key customers stores IHG sales
Iconic independent and local network Operates in both Trade and DIY segments Customers include national residential builders through to local handy-man 306 47
Strong focus on Trade segment and home builders Mix of independently owned and company-owned stores Customers include national residential builders through to local handy-man 246 37
ldquoYour local hardware storerdquo National hardware chain with small format stores Services metro and regional communities 126 2
ldquoMaking hardware easyrdquo National hardware chain with small format stores Services metro and regional communities across Australia 67 1
Supplier of quality lsquofront of wallrsquo plumbing (bathrooms kitchens appliances) 6 outlets across Melbourne Brisbane Adelaide and surrounding areas Customer base gt90 trade 5 5
~500 unbannered stores contribute ~8 of total sales
Brands
For
per
sona
l use
onl
y
10
An extensive national footprint
StateMitre
10stores
HTHstores
Totalstores DCs
NSW 81 104 185 2
QLD 113 68 181 1
SA NT 60 37 97
TAS 14 14 28
VIC 71 103 174 1
WA 34 51 85 2
TOTAL 373 377 750 6
HTH store footprint is complementary to Mitre 10 ndash limited overlap
DCs will reduce from 7 to 6 (South Dandenong to close) ndash delivers synergy benefits
Currently 2 South Dandenong DC to be closed in April
1
2
113
81
71
34
14
60
14
51
37
68 1
104 2
103
For
per
sona
l use
onl
y
11
679
71
Independent Majority owned or Company-owned
IHG committed to ldquoSuccessful Independentsrdquo
750 bannered stores Successful Independents is key focus Independent store owners gt90 of IHG
network Company-owned stores are an important
component of the Hardware business 53 Mitre 10 JV stores (30 majority owned) 41 Company-owned stores added through
HTH acquisition supported by a strong and experienced management team Hardware offer extended through addition of
stores such as Hardings Hardware and TaitTimber Location of Independent and Company-
owned stores are complementary with minimal conflict sites F
or p
erso
nal u
se o
nly
12
~60~40
IHG
Trade Retail
Strengthened position in Trade segment
Proportion of Trade sales increased from ~55 to ~60 through HTH acquisition
Attractive service offer ldquoGet in get out get on with itrdquo and ldquoGo where the Tradies gordquo
Focus on delivering what Tradies wanto Low cost and transparento Rapid response from order to delivery (DIFOT)o Timber undercovero Relationship at all touch pointso Trade drive through and separate Trade desko Early opening clean facilities coffeeo Investment in technology to improve efficiency
~55~45
Mitre 10
~62~38
HTH
Sales mix
Based on sales for year ended 30 April 2016 for Metcash Hardware and 30 June 2016 for HTH For
per
sona
l use
onl
y
13
Consumer led strategy
SHOPPER LED RANGE amp COMPETITIVE PRICING
BUILD TRADE
DIGITALDATA INSIGHTS
WORKING SMARTER
BEST STORE IN TOWN
SAPPHIRE PROGRAM
Good progress across all Mitre 10 stores
HTH opportunities identified
Combined the best of both to make a better businessFor
per
sona
l use
onl
y
Annette WelshGM ndash Merchandise
Key strategic initiatives
For
per
sona
l use
onl
y
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
l use
onl
y
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
15
16
17
18
18
19
63
684768
741389754
7999159334
81511433614
87674603678
42
42798
43611162
44439774078
452841297855
461445282514
1019
1019
1019
1019
1019
FY12
FY13
FY14
FY15
FY16
FY17
Hardware
Home Improvement
Large Big Box
Small to Medium
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
46 stores x25M
16 Trade
6 of overall biz
36 stores x 10m
Updated Aug 2016
Market Share Calculation
Market Share Calculation
Market Share Calculation
Source CLSA 5814
Source CLSA 5814
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Wesfarmers
Wesfarmers
Bunnings
6078
245
Bunnings
1232
479
Bunnings
7310
145
Blackwoods
0
000
Blackwoods
50
019
Blackwoods
50
01
Bunnings
6078
2450
Bunnings
1282
499
Bunnings
7360
146
Woolworths
Woolworths
Woolworths
Masters
723
291
Masters
38
015
Masters
761
15
Home Timber amp Hardware
381
154
Home Timber amp Hardware
381
148
Home Timber amp Hardware
762
15
company owned
69
028
company owned
305
119
company owned
374
07
Gunns
10
004
Gunns
59
023
Gunns
69
01
Becks
12
005
Becks
36
014
Becks
48
01
Magnet Mart
24
010
Magnet Mart
36
014
Magnet Mart
60
01
Flatmans
4
002
Flatmans
21
008
Flatmans
25
00
Taits
5
002
Taits
49
019
Taits
54
01
Mittagong
3
001
Mittagong
23
009
Mittagong
26
01
Hardings
11
004
Hardings
61
024
Hardings
72
01
FAW Building
0
000
FAW Building
20
008
FAW Building
20
00
wholesale customers
480
193
wholesale customers
116
045
wholesale customers
596
12
Woolworths Other
618
249
Woolworths Other
726
283
Woolworths Other
1344
27
Metcash
Metcash
Metcash
Mitre 10 branded outlets
690
278
Mitre 10 branded outlets
810
315
Mitre 10 branded outlets
1500
30
Mitre 10 supplied independents
210
085
Mitre 10 supplied independents
90
035
Mitre 10 supplied independents
300
06
Mitre10
900
363
Mitre10
900
350
Mitre10
1800
36
Specialist Plumbing
274
110
Specialist Plumbing
2284
889
Specialist Plumbing
2558
506
Reece
219
088
Reece
1239
482
Reece
1458
29
Tradelink
55
022
Tradelink
1045
407
Tradelink
1100
22
Specialist Paint
255
103
Specialist Paint
1021
397
Specialist Paint
1276
25
Dulux
22
009
Dulux
89
035
Dulux
111
02
Inspirations
73
029
Inspirations
292
114
Inspirations
365
07
Paint Place
60
024
Paint Place
240
093
Paint Place
300
06
Bristol
60
024
Bristol
240
093
Bristol
300
06
Solver Decorator Centre
20
008
Solver Decorator Centre
80
031
Solver Decorator Centre
100
02
Wattyl Trade Paint Centre
20
008
Wattyl Trade Paint Centre
80
031
Wattyl Trade Paint Centre
100
02
Specialist Hardware
142
06
Specialist Hardware
568
22
Specialist Hardware
710
14
Hardware amp Building Traders (HBT)
86
035
Hardware amp Building Traders (HBT)
344
134
Hardware amp Building Traders (HBT)
430
09
Bowens
24
010
Bowens
96
037
Bowens
120
02
Swadling Group
12
005
Swadling Group
48
019
Swadling Group
60
01
Hardware amp General
20
008
Hardware amp General
80
031
Hardware amp General
100
02
Specialist Other
900
36
Specialist Other
627
24
Specialist Other
1527
30
Total Tools
35
014
Total Tools
81
032
Total Tools
116
02
Stratco
100
040
Stratco
100
039
Stratco
200
04
Barbeques Galore
200
081
Barbeques Galore
0
000
Barbeques Galore
200
04
Carpet Call
160
064
Carpet Call
40
016
Carpet Call
200
04
Outdoor Furniture Specialists
70
028
Outdoor Furniture Specialists
0
000
Outdoor Furniture Specialists
70
01
Beacon Lighting
143
058
Beacon Lighting
8
003
Beacon Lighting
151
03
Howards Storage World
90
036
Howards Storage World
0
000
Howards Storage World
90
02
Gyprock Trade
0
000
Gyprock Trade
260
101
Gyprock Trade
260
05
Flower Power
95
038
Flower Power
5
002
Flower Power
100
02
Stegbar
7
003
Stegbar
133
052
Stegbar
140
03
Big Box Other
626
25
Big Box Other
2145
83
Big Box Other
2771
55
IKEA
233
094
IKEA
0
000
IKEA
233
05
Supermarkets
152
061
Supermarkets
0
000
Supermarkets
152
03
Discount department stores
241
097
Discount department stores
0
000
Discount department stores
241
05
Direct delivery from supplier
0
000
Direct delivery from supplier
2145
835
Direct delivery from supplier
2145
42
Other
13094
5278
Other
11782
4585
Other
24876
493
Grand Total
24810
10000
Grand Total
25696
10000
Grand Total
50506
1000
23922
21449
45371
888
4247
5135
Other (original)
13644
5499
Other (original)
12203
4749
Other (original)
25847
512
Adjustment
-550
Adjustment
-421
Adjustment
-971
net
13094
net
11782
net
24876
Bunnings
Masters
Home Timber amp Hardware
Woolworths Other
Mitre10
Specialist Plumbing
Specialist Paint
Specialist Hardware
Specialist Other
Big Box Other
Other
Market Share Calculation
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Bunnings
6078
254
1232
574
7310
161
Blackwoods
0
000
50
023
50
01
6078
2541
1282
598
7360
162
Woolworths
Masters
723
302
38
018
761
17
Home Timber amp Hardware
381
159
381
178
762
17
company owned
69
029
305
142
374
08
Gunns
10
004
59
028
69
02
Becks
12
005
36
017
48
01
Magnet Mart
24
010
36
017
60
01
Flatmans
4
002
21
010
25
01
Taits
5
002
49
023
54
01
Mittagong
3
001
23
011
26
01
Hardings
11
005
61
028
72
02
FAW Building
0
000
20
009
20
00
wholesale customers
480
201
116
054
596
13
1653
691
840
392
2493
55
Metcash
Mitre 10 branded outlets
690
288
810
378
1500
33
Mitre 10 supplied independents
210
088
90
042
300
07
900
376
900
420
1800
40
Specialist Plumbing
Reece
219
092
1239
578
1458
32
Tradelink
55
023
1045
487
1100
24
Specialist Paint
Dulux
22
009
89
041
111
02
Inspirations
73
031
292
136
365
08
Paint Place
60
025
240
112
300
07
Bristol
60
025
240
112
300
07
Solver Decorator Centre
20
008
80
037
100
02
Wattyl Trade Paint Centre
20
008
80
037
100
02
Specialist Hardware
Hardware amp Building Traders (HBT)
86
036
344
160
430
09
Bowens
24
010
96
045
120
03
Swadling Group
12
005
48
022
60
01
Hardware amp General
20
008
80
037
100
02
Specialist Other
Total Tools
35
015
81
038
116
03
Stratco
100
042
100
047
200
04
Barbeques Galore
200
084
0
000
200
04
Carpet Call
160
067
40
019
200
04
Outdoor Furniture Specialists
70
029
0
000
70
02
Beacon Lighting
143
060
8
004
151
03
Howards Storage World
90
038
0
000
90
02
Gyprock Trade
0
000
260
121
260
06
Flower Power
95
040
5
002
100
02
Stegbar
7
003
133
062
140
03
Big Box Other
IKEA
233
097
0
000
233
05
Supermarkets
152
064
0
000
152
03
Discount department stores
241
101
0
000
241
05
Direct delivery from supplier
0
000
2145
1000
2145
47
Other
13094
5474
11782
5493
24876
548
Grand Total
23922
10000
21449
10000
45371
1000
23922
21449
45371
- 0
- 0
- 0
Other (original)
13644
5704
12203
5689
25847
570
Adjustment
-550
-421
-971
net
13094
11782
24876
Original
Current
42000
8600
10800
4400
4700
12200
42000
8600
10800
4400
4700
12200
Aus
Retail
Trade
Plumbing
White goods
Consumer
Aus
Retail
Trade
Plumbing
White goods
Consumer
Retail
Trade
Plumbing
White goods
Consumer
Bunnings
6490
4280
1000
280
80
850
7360
6078
1282
4854
1134
318
91
964
- 0
Mitre10
1720
880
550
60
30
200
1800
900
900
921
576
63
31
209
Reece
1500
1500
1458
219
1239
- 0
- 0
1458
- 0
- 0
Lawerence amp Hanson
1000
200
800
- 0
- 0
- 0
- 0
- 0
- 0
Tradelink
900
900
1100
55
1045
- 0
- 0
1100
- 0
- 0
DanksMasters
850
380
280
60
30
100
1523
1104
419
681
502
108
54
179
Harvey Norman
800
750
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbtec
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Good Guys
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Middys
500
100
400
- 0
- 0
- 0
- 0
- 0
- 0
Dahlsens
430
80
300
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbing Plus
400
400
- 0
- 0
- 0
- 0
- 0
- 0
BBQ Galore
250
250
200
- 0
200
- 0
- 0
- 0
- 0
200
Betta
250
250
- 0
- 0
- 0
- 0
- 0
- 0
Bowens
250
50
200
- 0
- 0
- 0
- 0
- 0
- 0
Total Tools
200
200
- 0
- 0
- 0
- 0
- 0
- 0
Paint Right
200
70
130
- 0
- 0
- 0
- 0
- 0
- 0
Beacon Lighting
200
150
50
- 0
- 0
- 0
- 0
- 0
- 0
Paint Place
150
50
100
- 0
- 0
- 0
- 0
- 0
- 0
Flower Power
150
150
- 0
- 0
- 0
- 0
- 0
- 0
Banner
90
20
70
- 0
- 0
- 0
- 0
- 0
- 0
Straco
80
80
- 0
- 0
- 0
- 0
- 0
- 0
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
HTH - FEB16
HTH - FEB17
Trade
Trade
Retail
Trade
HTH Indep
7500
510
3825
3675
51
HTH Co Owned
4500
800
3600
900
80
00
12000
62
7425
4575
62
M10 - FEB16
M10 - FEB17
Trade
Trade
Retail
Trade
M10 wholes
9750
570
5558
4193
57
00
9750
5558
4193
57
CORE HOME Improvement
Overall
Retail
Ret
Trade
Trade
Tot
Tot
Tot
Bunnings
780
68
170
10
950
34
180
18 ($95b)
Masters
078
7
030
2
108
4
40
4 ($11b)
HTH
046
4
074
4
120
4
40
4 ($12b)
M10
088
8
090
5
178
6
40
4 ($18b)
Reece
025
2
180
11
205
7
32
3 ($21b)
Tradelink
007
1
070
4
077
3
24
2 ($08b)
Dahlsens
040
2
040
1
05
1 ($04b)
Plumbtec
050
3
050
2
05
1 ($05b)
0
0
0
00
0 ($00b)
Other
130
11
970
58
1100
39
634
63 ($110b)
1154
100
1674
100
2828
100
1000
115b
18
167b
283b
56
1472
1472 ($283bb)
28b
74
Waterfall data input
Invisible
Final
Minus
Plus
Base
Retail
115
Trade
115
167
Core HI
283
Extended HI
283
1315
132b
Whitegoods
414
485
49b
Total Market
463
463b
Chart Data
Sales amp EBIT (from annual report)
HW Market
HW Retail
Core $M
FY15
FY14
FY13
Market share
Enter Sales
market
Chart
SALES
GROWTH
EBIT
EBIT
SALES
GROWTH
EBIT
EBIT
SALES
EBIT
EBIT
Retail
Entry
Garden
23
Core
90
20
Timber amp Building
10750
108
Kitchen amp Bathroom
26
Core
90
23
Dahlsens
350
33
350M
Hardware
12
Core
60
07
Bowen
250
23
250M
Plumbing (incl Fashion Tapeware amp Acc)
56
Core
25
14
Banner
70
07
70M
Paint
17
Core
60
10
Stratco
70
07
70M
Tools
23
Core
55
13
Other
10010
1
10010M
Electrical
17
Core
55
09
Electrical
1650
17
Timber amp Building
108
Core
0
00
Lawrence and hansen
925
561
925M
Core
280
96
Beacon
179
108
179M
179
Washing Machine amp Dryers
24
Whitegoods
24
Middys
500
303
500M
Fridges Freezer amp Dishwashers
26
Whitegoods
26
Other
46
28
46M
Whitegoods
50
50
Tools
2300
23
Other
27
Extended
27
Total Tools
130
57
130M
Camping Equip amp Storage
12
Extended
12
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
57
130M
128
Home Decor amp Craft
19
Extended
19
Other
2040
887
2040M
Small Appliances
24
Extended
24
Paint
1700
17
Flooring amp Covers
26
Extended
26
Paint Right Ash 61 stores
140
82
140M
BBQ amp Outdoor Furniture
10
Extended
10
Paint Place Ash 115stores
350
206
350M
Kitchen Appliances
13
Extended
13
Other Ash Paint place - 115 locations aust wide
1210
712
1210M
Extended
131
131
Plumbing
5600
56
461
277
Reece
2085
372 Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
2085M
2085
175
1775
Tradelink
1200
214
1200M
1200 Ash FY15 sales drop of 11 on Fy14
Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
Ash 61 stores
Ash 115stores
Ash Paint place - 115 locations aust wide
Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
To compile the list IBISWorld gathered data through primary research ASIC-lodged company reports and its own appraisals of company revenue based on historic data and industry analysis
Read more httpwwwafrcomleadershipbrw-liststop-500-private-companiesafr-top-500-private-companies-20160828-gr2zytixzz4acFaFxWv
Source - DGC Advisory Market report - AUG16
Corp amp independent Specialists
56
Chart Data
Bunnings
22
Core $M
Mitre10
4
Market share
Enter Sales
Reece
4
Natbuild
3
Timber amp Building
10936
masters
3
Dahlsens
322
Lawrence amp Hanson
3
Hardware amp General
122
Home timber
2
Bowen
342
Tradelink
2
Banner
70
HBT
1
Stratco
70
Dahlsens
Other
10010
Plumbtec
Electrical
1650
online hardware retailers
Lawrence and hansen
925
Samios plumbing
Beacon
179
Middys
500
Other
46
Tools
2300
Total Tools
130
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
Other
2040
Paint
1700
Paint Right Ash 61 stores
140
Paint Place Ash 115stores
350
Other Ash Paint place - 115 locations aust wide
1210
Plumbing
5743
Reece
2085
Tradelink
1200
Plumbtec
500
Plumbers Supplies Co Op
143
Other
1815
Kitchen amp Bathroom
2550
Impala
Kitset
Other
2550
Garden
2250
Flower Power
70
Other
2180
Hardware
1200
Other
1200
Hardware amp General
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
8
IHG ndash second largest player in Hardware market
Acquisition of HTH in October 2016o Now clear 2 in Hardware marketo Strengthened position in Trade segmento HTH and Mitre 10 complementary with limited
store overlap
Opportunity to roll out speciality offers such as plumbing tiling power garden equipment and flooring
Retail offer strengthened through addition of 41 HTH corporate stores to 53 Mitre 10 JV stores
Bunnings has consolidated the retail sector becoming the dominant player The trade market remains fragmented with traditional wholesalers competing against trade focused chains and specialists (eg Reece)
Mitre 10s brand is well positioned across both retail and trade segments of the $238B HI core market
Source Pittney Bowes amp Moore Stephens 2009Estimated Market Share based on internal assumptions
HI market intel Mar17
Competitive landscape
ampZampFampA ampD ampT
Dahlsens
Bowens
HTH Company
Reece
Tradelink
HBT
HTH
Masters
True Value
Small
Store Format
Large
Retail Focus
Trade Focus
Total Tools
Stratco
Landmark
Plumbtec
Thrifty Link
HampG
Swan Plumbing
Beaumont Tiles
Stihl
Mitre 10
M10 JV Stores
Hardings
Hudsons
Natbuild
Porters
By Category - Core
ampZampF
Garden
225
Kitchen amp Bathroom
25499999999999998Hardware
12Plumbing (incl Fashion Tapeware amp Acc)
56Paint
17Tools
22999999999999998Electrical
165Timber amp Building
1075
Total Core HI Sales
By Category
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
Traditionally Mitre10 plays in the $28bn market dominated by two distinct consumer types Retail (DIY) and Trade The Trade Market is highly fragmented with un-bannered independents garnering 59
Updated Dec15 Sources FY15 Annual Reports amp Analyst Data
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade The Trade market is highly fragmented with unbannered independents amp specialists garnering 78 of the market
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
The Home Improvement sector is dominated by two distinct consumer types Retail (DIY) and Trade
Mitre 10s brand is well positioned across both retail and trade segments of the $24B HI core market
Sources Pittney Bowes amp Moore Stephens 2009 amp UBS All Market Shares are estimates
Other
61149
64
2234799
35
4722
67
2415
79
Sheet2
Sheet3
Sheet1
Growth Opportunity
Sheet4
HI as a picture
Sheet6
Sheet5
image1emf
image2png
image3png
image4jpeg
image5jpeg
image6png
image15jpeg
image16jpeg
image17jpeg
image18jpeg
image19jpeg
image20jpeg
image21jpeg
image22jpeg
image23jpeg
image7gif
image8jpeg
image9jpeg
image10png
image11jpeg
image12gif
image13jpeg
image14jpeg
image28jpeg
image29jpeg
image30jpeg
image24png
image25jpeg
image26jpeg
image27jpeg
image31png
image32jpeg
image33png
image34png
image35jpeg
image36png
image37png
image38png
9
IHG brands
Key customers stores IHG sales
Iconic independent and local network Operates in both Trade and DIY segments Customers include national residential builders through to local handy-man 306 47
Strong focus on Trade segment and home builders Mix of independently owned and company-owned stores Customers include national residential builders through to local handy-man 246 37
ldquoYour local hardware storerdquo National hardware chain with small format stores Services metro and regional communities 126 2
ldquoMaking hardware easyrdquo National hardware chain with small format stores Services metro and regional communities across Australia 67 1
Supplier of quality lsquofront of wallrsquo plumbing (bathrooms kitchens appliances) 6 outlets across Melbourne Brisbane Adelaide and surrounding areas Customer base gt90 trade 5 5
~500 unbannered stores contribute ~8 of total sales
Brands
For
per
sona
l use
onl
y
10
An extensive national footprint
StateMitre
10stores
HTHstores
Totalstores DCs
NSW 81 104 185 2
QLD 113 68 181 1
SA NT 60 37 97
TAS 14 14 28
VIC 71 103 174 1
WA 34 51 85 2
TOTAL 373 377 750 6
HTH store footprint is complementary to Mitre 10 ndash limited overlap
DCs will reduce from 7 to 6 (South Dandenong to close) ndash delivers synergy benefits
Currently 2 South Dandenong DC to be closed in April
1
2
113
81
71
34
14
60
14
51
37
68 1
104 2
103
For
per
sona
l use
onl
y
11
679
71
Independent Majority owned or Company-owned
IHG committed to ldquoSuccessful Independentsrdquo
750 bannered stores Successful Independents is key focus Independent store owners gt90 of IHG
network Company-owned stores are an important
component of the Hardware business 53 Mitre 10 JV stores (30 majority owned) 41 Company-owned stores added through
HTH acquisition supported by a strong and experienced management team Hardware offer extended through addition of
stores such as Hardings Hardware and TaitTimber Location of Independent and Company-
owned stores are complementary with minimal conflict sites F
or p
erso
nal u
se o
nly
12
~60~40
IHG
Trade Retail
Strengthened position in Trade segment
Proportion of Trade sales increased from ~55 to ~60 through HTH acquisition
Attractive service offer ldquoGet in get out get on with itrdquo and ldquoGo where the Tradies gordquo
Focus on delivering what Tradies wanto Low cost and transparento Rapid response from order to delivery (DIFOT)o Timber undercovero Relationship at all touch pointso Trade drive through and separate Trade desko Early opening clean facilities coffeeo Investment in technology to improve efficiency
~55~45
Mitre 10
~62~38
HTH
Sales mix
Based on sales for year ended 30 April 2016 for Metcash Hardware and 30 June 2016 for HTH For
per
sona
l use
onl
y
13
Consumer led strategy
SHOPPER LED RANGE amp COMPETITIVE PRICING
BUILD TRADE
DIGITALDATA INSIGHTS
WORKING SMARTER
BEST STORE IN TOWN
SAPPHIRE PROGRAM
Good progress across all Mitre 10 stores
HTH opportunities identified
Combined the best of both to make a better businessFor
per
sona
l use
onl
y
Annette WelshGM ndash Merchandise
Key strategic initiatives
For
per
sona
l use
onl
y
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
l use
onl
y
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
15
16
17
18
18
19
63
684768
741389754
7999159334
81511433614
87674603678
42
42798
43611162
44439774078
452841297855
461445282514
1019
1019
1019
1019
1019
FY12
FY13
FY14
FY15
FY16
FY17
Hardware
Home Improvement
Large Big Box
Small to Medium
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
46 stores x25M
16 Trade
6 of overall biz
36 stores x 10m
Updated Aug 2016
Market Share Calculation
Market Share Calculation
Market Share Calculation
Source CLSA 5814
Source CLSA 5814
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Wesfarmers
Wesfarmers
Bunnings
6078
245
Bunnings
1232
479
Bunnings
7310
145
Blackwoods
0
000
Blackwoods
50
019
Blackwoods
50
01
Bunnings
6078
2450
Bunnings
1282
499
Bunnings
7360
146
Woolworths
Woolworths
Woolworths
Masters
723
291
Masters
38
015
Masters
761
15
Home Timber amp Hardware
381
154
Home Timber amp Hardware
381
148
Home Timber amp Hardware
762
15
company owned
69
028
company owned
305
119
company owned
374
07
Gunns
10
004
Gunns
59
023
Gunns
69
01
Becks
12
005
Becks
36
014
Becks
48
01
Magnet Mart
24
010
Magnet Mart
36
014
Magnet Mart
60
01
Flatmans
4
002
Flatmans
21
008
Flatmans
25
00
Taits
5
002
Taits
49
019
Taits
54
01
Mittagong
3
001
Mittagong
23
009
Mittagong
26
01
Hardings
11
004
Hardings
61
024
Hardings
72
01
FAW Building
0
000
FAW Building
20
008
FAW Building
20
00
wholesale customers
480
193
wholesale customers
116
045
wholesale customers
596
12
Woolworths Other
618
249
Woolworths Other
726
283
Woolworths Other
1344
27
Metcash
Metcash
Metcash
Mitre 10 branded outlets
690
278
Mitre 10 branded outlets
810
315
Mitre 10 branded outlets
1500
30
Mitre 10 supplied independents
210
085
Mitre 10 supplied independents
90
035
Mitre 10 supplied independents
300
06
Mitre10
900
363
Mitre10
900
350
Mitre10
1800
36
Specialist Plumbing
274
110
Specialist Plumbing
2284
889
Specialist Plumbing
2558
506
Reece
219
088
Reece
1239
482
Reece
1458
29
Tradelink
55
022
Tradelink
1045
407
Tradelink
1100
22
Specialist Paint
255
103
Specialist Paint
1021
397
Specialist Paint
1276
25
Dulux
22
009
Dulux
89
035
Dulux
111
02
Inspirations
73
029
Inspirations
292
114
Inspirations
365
07
Paint Place
60
024
Paint Place
240
093
Paint Place
300
06
Bristol
60
024
Bristol
240
093
Bristol
300
06
Solver Decorator Centre
20
008
Solver Decorator Centre
80
031
Solver Decorator Centre
100
02
Wattyl Trade Paint Centre
20
008
Wattyl Trade Paint Centre
80
031
Wattyl Trade Paint Centre
100
02
Specialist Hardware
142
06
Specialist Hardware
568
22
Specialist Hardware
710
14
Hardware amp Building Traders (HBT)
86
035
Hardware amp Building Traders (HBT)
344
134
Hardware amp Building Traders (HBT)
430
09
Bowens
24
010
Bowens
96
037
Bowens
120
02
Swadling Group
12
005
Swadling Group
48
019
Swadling Group
60
01
Hardware amp General
20
008
Hardware amp General
80
031
Hardware amp General
100
02
Specialist Other
900
36
Specialist Other
627
24
Specialist Other
1527
30
Total Tools
35
014
Total Tools
81
032
Total Tools
116
02
Stratco
100
040
Stratco
100
039
Stratco
200
04
Barbeques Galore
200
081
Barbeques Galore
0
000
Barbeques Galore
200
04
Carpet Call
160
064
Carpet Call
40
016
Carpet Call
200
04
Outdoor Furniture Specialists
70
028
Outdoor Furniture Specialists
0
000
Outdoor Furniture Specialists
70
01
Beacon Lighting
143
058
Beacon Lighting
8
003
Beacon Lighting
151
03
Howards Storage World
90
036
Howards Storage World
0
000
Howards Storage World
90
02
Gyprock Trade
0
000
Gyprock Trade
260
101
Gyprock Trade
260
05
Flower Power
95
038
Flower Power
5
002
Flower Power
100
02
Stegbar
7
003
Stegbar
133
052
Stegbar
140
03
Big Box Other
626
25
Big Box Other
2145
83
Big Box Other
2771
55
IKEA
233
094
IKEA
0
000
IKEA
233
05
Supermarkets
152
061
Supermarkets
0
000
Supermarkets
152
03
Discount department stores
241
097
Discount department stores
0
000
Discount department stores
241
05
Direct delivery from supplier
0
000
Direct delivery from supplier
2145
835
Direct delivery from supplier
2145
42
Other
13094
5278
Other
11782
4585
Other
24876
493
Grand Total
24810
10000
Grand Total
25696
10000
Grand Total
50506
1000
23922
21449
45371
888
4247
5135
Other (original)
13644
5499
Other (original)
12203
4749
Other (original)
25847
512
Adjustment
-550
Adjustment
-421
Adjustment
-971
net
13094
net
11782
net
24876
Bunnings
Masters
Home Timber amp Hardware
Woolworths Other
Mitre10
Specialist Plumbing
Specialist Paint
Specialist Hardware
Specialist Other
Big Box Other
Other
Market Share Calculation
Source CLSA 5814
254
Consumer Sales
Share
Trade Sales
Share
Total Sales
Share
Wesfarmers
Bunnings
6078
254
1232
574
7310
161
Blackwoods
0
000
50
023
50
01
6078
2541
1282
598
7360
162
Woolworths
Masters
723
302
38
018
761
17
Home Timber amp Hardware
381
159
381
178
762
17
company owned
69
029
305
142
374
08
Gunns
10
004
59
028
69
02
Becks
12
005
36
017
48
01
Magnet Mart
24
010
36
017
60
01
Flatmans
4
002
21
010
25
01
Taits
5
002
49
023
54
01
Mittagong
3
001
23
011
26
01
Hardings
11
005
61
028
72
02
FAW Building
0
000
20
009
20
00
wholesale customers
480
201
116
054
596
13
1653
691
840
392
2493
55
Metcash
Mitre 10 branded outlets
690
288
810
378
1500
33
Mitre 10 supplied independents
210
088
90
042
300
07
900
376
900
420
1800
40
Specialist Plumbing
Reece
219
092
1239
578
1458
32
Tradelink
55
023
1045
487
1100
24
Specialist Paint
Dulux
22
009
89
041
111
02
Inspirations
73
031
292
136
365
08
Paint Place
60
025
240
112
300
07
Bristol
60
025
240
112
300
07
Solver Decorator Centre
20
008
80
037
100
02
Wattyl Trade Paint Centre
20
008
80
037
100
02
Specialist Hardware
Hardware amp Building Traders (HBT)
86
036
344
160
430
09
Bowens
24
010
96
045
120
03
Swadling Group
12
005
48
022
60
01
Hardware amp General
20
008
80
037
100
02
Specialist Other
Total Tools
35
015
81
038
116
03
Stratco
100
042
100
047
200
04
Barbeques Galore
200
084
0
000
200
04
Carpet Call
160
067
40
019
200
04
Outdoor Furniture Specialists
70
029
0
000
70
02
Beacon Lighting
143
060
8
004
151
03
Howards Storage World
90
038
0
000
90
02
Gyprock Trade
0
000
260
121
260
06
Flower Power
95
040
5
002
100
02
Stegbar
7
003
133
062
140
03
Big Box Other
IKEA
233
097
0
000
233
05
Supermarkets
152
064
0
000
152
03
Discount department stores
241
101
0
000
241
05
Direct delivery from supplier
0
000
2145
1000
2145
47
Other
13094
5474
11782
5493
24876
548
Grand Total
23922
10000
21449
10000
45371
1000
23922
21449
45371
- 0
- 0
- 0
Other (original)
13644
5704
12203
5689
25847
570
Adjustment
-550
-421
-971
net
13094
11782
24876
Original
Current
42000
8600
10800
4400
4700
12200
42000
8600
10800
4400
4700
12200
Aus
Retail
Trade
Plumbing
White goods
Consumer
Aus
Retail
Trade
Plumbing
White goods
Consumer
Retail
Trade
Plumbing
White goods
Consumer
Bunnings
6490
4280
1000
280
80
850
7360
6078
1282
4854
1134
318
91
964
- 0
Mitre10
1720
880
550
60
30
200
1800
900
900
921
576
63
31
209
Reece
1500
1500
1458
219
1239
- 0
- 0
1458
- 0
- 0
Lawerence amp Hanson
1000
200
800
- 0
- 0
- 0
- 0
- 0
- 0
Tradelink
900
900
1100
55
1045
- 0
- 0
1100
- 0
- 0
DanksMasters
850
380
280
60
30
100
1523
1104
419
681
502
108
54
179
Harvey Norman
800
750
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbtec
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Good Guys
500
500
- 0
- 0
- 0
- 0
- 0
- 0
Middys
500
100
400
- 0
- 0
- 0
- 0
- 0
- 0
Dahlsens
430
80
300
50
- 0
- 0
- 0
- 0
- 0
- 0
Plumbing Plus
400
400
- 0
- 0
- 0
- 0
- 0
- 0
BBQ Galore
250
250
200
- 0
200
- 0
- 0
- 0
- 0
200
Betta
250
250
- 0
- 0
- 0
- 0
- 0
- 0
Bowens
250
50
200
- 0
- 0
- 0
- 0
- 0
- 0
Total Tools
200
200
- 0
- 0
- 0
- 0
- 0
- 0
Paint Right
200
70
130
- 0
- 0
- 0
- 0
- 0
- 0
Beacon Lighting
200
150
50
- 0
- 0
- 0
- 0
- 0
- 0
Paint Place
150
50
100
- 0
- 0
- 0
- 0
- 0
- 0
Flower Power
150
150
- 0
- 0
- 0
- 0
- 0
- 0
Banner
90
20
70
- 0
- 0
- 0
- 0
- 0
- 0
Straco
80
80
- 0
- 0
- 0
- 0
- 0
- 0
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
HTH - FEB16
HTH - FEB17
Trade
Trade
Retail
Trade
HTH Indep
7500
510
3825
3675
51
HTH Co Owned
4500
800
3600
900
80
00
12000
62
7425
4575
62
M10 - FEB16
M10 - FEB17
Trade
Trade
Retail
Trade
M10 wholes
9750
570
5558
4193
57
00
9750
5558
4193
57
CORE HOME Improvement
Overall
Retail
Ret
Trade
Trade
Tot
Tot
Tot
Bunnings
780
68
170
10
950
34
180
18 ($95b)
Masters
078
7
030
2
108
4
40
4 ($11b)
HTH
046
4
074
4
120
4
40
4 ($12b)
M10
088
8
090
5
178
6
40
4 ($18b)
Reece
025
2
180
11
205
7
32
3 ($21b)
Tradelink
007
1
070
4
077
3
24
2 ($08b)
Dahlsens
040
2
040
1
05
1 ($04b)
Plumbtec
050
3
050
2
05
1 ($05b)
0
0
0
00
0 ($00b)
Other
130
11
970
58
1100
39
634
63 ($110b)
1154
100
1674
100
2828
100
1000
115b
18
167b
283b
56
1472
1472 ($283bb)
28b
74
Waterfall data input
Invisible
Final
Minus
Plus
Base
Retail
115
Trade
115
167
Core HI
283
Extended HI
283
1315
132b
Whitegoods
414
485
49b
Total Market
463
463b
Chart Data
Sales amp EBIT (from annual report)
HW Market
HW Retail
Core $M
FY15
FY14
FY13
Market share
Enter Sales
market
Chart
SALES
GROWTH
EBIT
EBIT
SALES
GROWTH
EBIT
EBIT
SALES
EBIT
EBIT
Retail
Entry
Garden
23
Core
90
20
Timber amp Building
10750
108
Kitchen amp Bathroom
26
Core
90
23
Dahlsens
350
33
350M
Hardware
12
Core
60
07
Bowen
250
23
250M
Plumbing (incl Fashion Tapeware amp Acc)
56
Core
25
14
Banner
70
07
70M
Paint
17
Core
60
10
Stratco
70
07
70M
Tools
23
Core
55
13
Other
10010
1
10010M
Electrical
17
Core
55
09
Electrical
1650
17
Timber amp Building
108
Core
0
00
Lawrence and hansen
925
561
925M
Core
280
96
Beacon
179
108
179M
179
Washing Machine amp Dryers
24
Whitegoods
24
Middys
500
303
500M
Fridges Freezer amp Dishwashers
26
Whitegoods
26
Other
46
28
46M
Whitegoods
50
50
Tools
2300
23
Other
27
Extended
27
Total Tools
130
57
130M
Camping Equip amp Storage
12
Extended
12
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
57
130M
128
Home Decor amp Craft
19
Extended
19
Other
2040
887
2040M
Small Appliances
24
Extended
24
Paint
1700
17
Flooring amp Covers
26
Extended
26
Paint Right Ash 61 stores
140
82
140M
BBQ amp Outdoor Furniture
10
Extended
10
Paint Place Ash 115stores
350
206
350M
Kitchen Appliances
13
Extended
13
Other Ash Paint place - 115 locations aust wide
1210
712
1210M
Extended
131
131
Plumbing
5600
56
461
277
Reece
2085
372 Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
2085M
2085
175
1775
Tradelink
1200
214
1200M
1200 Ash FY15 sales drop of 11 on Fy14
Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
Ash 61 stores
Ash 115stores
Ash Paint place - 115 locations aust wide
Ash Reece quoted as having 32 share of plumbing market - source HW journal May15
To compile the list IBISWorld gathered data through primary research ASIC-lodged company reports and its own appraisals of company revenue based on historic data and industry analysis
Read more httpwwwafrcomleadershipbrw-liststop-500-private-companiesafr-top-500-private-companies-20160828-gr2zytixzz4acFaFxWv
Source - DGC Advisory Market report - AUG16
Corp amp independent Specialists
56
Chart Data
Bunnings
22
Core $M
Mitre10
4
Market share
Enter Sales
Reece
4
Natbuild
3
Timber amp Building
10936
masters
3
Dahlsens
322
Lawrence amp Hanson
3
Hardware amp General
122
Home timber
2
Bowen
342
Tradelink
2
Banner
70
HBT
1
Stratco
70
Dahlsens
Other
10010
Plumbtec
Electrical
1650
online hardware retailers
Lawrence and hansen
925
Samios plumbing
Beacon
179
Middys
500
Other
46
Tools
2300
Total Tools
130
Stihl Ash 450+ Stihl outletsRev 100m in 2010assume 5 growth pa through increased outlets
130
Other
2040
Paint
1700
Paint Right Ash 61 stores
140
Paint Place Ash 115stores
350
Other Ash Paint place - 115 locations aust wide
1210
Plumbing
5743
Reece
2085
Tradelink
1200
Plumbtec
500
Plumbers Supplies Co Op
143
Other
1815
Kitchen amp Bathroom
2550
Impala
Kitset
Other
2550
Garden
2250
Flower Power
70
Other
2180
Hardware
1200
Other
1200
Hardware amp General
2011
2012
EBIT
EBIT
NZ
OZ
Trade
Plumbing
Retail
Bunnings
6180
7162
841
117
1150
6012
132192
36072
432936
Mitre 10
1500
0
1530
600
70
860
Danks
Dahlsens
Bowens
9
IHG brands
Key customers stores IHG sales
Iconic independent and local network Operates in both Trade and DIY segments Customers include national residential builders through to local handy-man 306 47
Strong focus on Trade segment and home builders Mix of independently owned and company-owned stores Customers include national residential builders through to local handy-man 246 37
ldquoYour local hardware storerdquo National hardware chain with small format stores Services metro and regional communities 126 2
ldquoMaking hardware easyrdquo National hardware chain with small format stores Services metro and regional communities across Australia 67 1
Supplier of quality lsquofront of wallrsquo plumbing (bathrooms kitchens appliances) 6 outlets across Melbourne Brisbane Adelaide and surrounding areas Customer base gt90 trade 5 5
~500 unbannered stores contribute ~8 of total sales
Brands
For
per
sona
l use
onl
y
10
An extensive national footprint
StateMitre
10stores
HTHstores
Totalstores DCs
NSW 81 104 185 2
QLD 113 68 181 1
SA NT 60 37 97
TAS 14 14 28
VIC 71 103 174 1
WA 34 51 85 2
TOTAL 373 377 750 6
HTH store footprint is complementary to Mitre 10 ndash limited overlap
DCs will reduce from 7 to 6 (South Dandenong to close) ndash delivers synergy benefits
Currently 2 South Dandenong DC to be closed in April
1
2
113
81
71
34
14
60
14
51
37
68 1
104 2
103
For
per
sona
l use
onl
y
11
679
71
Independent Majority owned or Company-owned
IHG committed to ldquoSuccessful Independentsrdquo
750 bannered stores Successful Independents is key focus Independent store owners gt90 of IHG
network Company-owned stores are an important
component of the Hardware business 53 Mitre 10 JV stores (30 majority owned) 41 Company-owned stores added through
HTH acquisition supported by a strong and experienced management team Hardware offer extended through addition of
stores such as Hardings Hardware and TaitTimber Location of Independent and Company-
owned stores are complementary with minimal conflict sites F
or p
erso
nal u
se o
nly
12
~60~40
IHG
Trade Retail
Strengthened position in Trade segment
Proportion of Trade sales increased from ~55 to ~60 through HTH acquisition
Attractive service offer ldquoGet in get out get on with itrdquo and ldquoGo where the Tradies gordquo
Focus on delivering what Tradies wanto Low cost and transparento Rapid response from order to delivery (DIFOT)o Timber undercovero Relationship at all touch pointso Trade drive through and separate Trade desko Early opening clean facilities coffeeo Investment in technology to improve efficiency
~55~45
Mitre 10
~62~38
HTH
Sales mix
Based on sales for year ended 30 April 2016 for Metcash Hardware and 30 June 2016 for HTH For
per
sona
l use
onl
y
13
Consumer led strategy
SHOPPER LED RANGE amp COMPETITIVE PRICING
BUILD TRADE
DIGITALDATA INSIGHTS
WORKING SMARTER
BEST STORE IN TOWN
SAPPHIRE PROGRAM
Good progress across all Mitre 10 stores
HTH opportunities identified
Combined the best of both to make a better businessFor
per
sona
l use
onl
y
Annette WelshGM ndash Merchandise
Key strategic initiatives
For
per
sona
l use
onl
y
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
l use
onl
y
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
10
An extensive national footprint
StateMitre
10stores
HTHstores
Totalstores DCs
NSW 81 104 185 2
QLD 113 68 181 1
SA NT 60 37 97
TAS 14 14 28
VIC 71 103 174 1
WA 34 51 85 2
TOTAL 373 377 750 6
HTH store footprint is complementary to Mitre 10 ndash limited overlap
DCs will reduce from 7 to 6 (South Dandenong to close) ndash delivers synergy benefits
Currently 2 South Dandenong DC to be closed in April
1
2
113
81
71
34
14
60
14
51
37
68 1
104 2
103
For
per
sona
l use
onl
y
11
679
71
Independent Majority owned or Company-owned
IHG committed to ldquoSuccessful Independentsrdquo
750 bannered stores Successful Independents is key focus Independent store owners gt90 of IHG
network Company-owned stores are an important
component of the Hardware business 53 Mitre 10 JV stores (30 majority owned) 41 Company-owned stores added through
HTH acquisition supported by a strong and experienced management team Hardware offer extended through addition of
stores such as Hardings Hardware and TaitTimber Location of Independent and Company-
owned stores are complementary with minimal conflict sites F
or p
erso
nal u
se o
nly
12
~60~40
IHG
Trade Retail
Strengthened position in Trade segment
Proportion of Trade sales increased from ~55 to ~60 through HTH acquisition
Attractive service offer ldquoGet in get out get on with itrdquo and ldquoGo where the Tradies gordquo
Focus on delivering what Tradies wanto Low cost and transparento Rapid response from order to delivery (DIFOT)o Timber undercovero Relationship at all touch pointso Trade drive through and separate Trade desko Early opening clean facilities coffeeo Investment in technology to improve efficiency
~55~45
Mitre 10
~62~38
HTH
Sales mix
Based on sales for year ended 30 April 2016 for Metcash Hardware and 30 June 2016 for HTH For
per
sona
l use
onl
y
13
Consumer led strategy
SHOPPER LED RANGE amp COMPETITIVE PRICING
BUILD TRADE
DIGITALDATA INSIGHTS
WORKING SMARTER
BEST STORE IN TOWN
SAPPHIRE PROGRAM
Good progress across all Mitre 10 stores
HTH opportunities identified
Combined the best of both to make a better businessFor
per
sona
l use
onl
y
Annette WelshGM ndash Merchandise
Key strategic initiatives
For
per
sona
l use
onl
y
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
l use
onl
y
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
11
679
71
Independent Majority owned or Company-owned
IHG committed to ldquoSuccessful Independentsrdquo
750 bannered stores Successful Independents is key focus Independent store owners gt90 of IHG
network Company-owned stores are an important
component of the Hardware business 53 Mitre 10 JV stores (30 majority owned) 41 Company-owned stores added through
HTH acquisition supported by a strong and experienced management team Hardware offer extended through addition of
stores such as Hardings Hardware and TaitTimber Location of Independent and Company-
owned stores are complementary with minimal conflict sites F
or p
erso
nal u
se o
nly
12
~60~40
IHG
Trade Retail
Strengthened position in Trade segment
Proportion of Trade sales increased from ~55 to ~60 through HTH acquisition
Attractive service offer ldquoGet in get out get on with itrdquo and ldquoGo where the Tradies gordquo
Focus on delivering what Tradies wanto Low cost and transparento Rapid response from order to delivery (DIFOT)o Timber undercovero Relationship at all touch pointso Trade drive through and separate Trade desko Early opening clean facilities coffeeo Investment in technology to improve efficiency
~55~45
Mitre 10
~62~38
HTH
Sales mix
Based on sales for year ended 30 April 2016 for Metcash Hardware and 30 June 2016 for HTH For
per
sona
l use
onl
y
13
Consumer led strategy
SHOPPER LED RANGE amp COMPETITIVE PRICING
BUILD TRADE
DIGITALDATA INSIGHTS
WORKING SMARTER
BEST STORE IN TOWN
SAPPHIRE PROGRAM
Good progress across all Mitre 10 stores
HTH opportunities identified
Combined the best of both to make a better businessFor
per
sona
l use
onl
y
Annette WelshGM ndash Merchandise
Key strategic initiatives
For
per
sona
l use
onl
y
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
l use
onl
y
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
12
~60~40
IHG
Trade Retail
Strengthened position in Trade segment
Proportion of Trade sales increased from ~55 to ~60 through HTH acquisition
Attractive service offer ldquoGet in get out get on with itrdquo and ldquoGo where the Tradies gordquo
Focus on delivering what Tradies wanto Low cost and transparento Rapid response from order to delivery (DIFOT)o Timber undercovero Relationship at all touch pointso Trade drive through and separate Trade desko Early opening clean facilities coffeeo Investment in technology to improve efficiency
~55~45
Mitre 10
~62~38
HTH
Sales mix
Based on sales for year ended 30 April 2016 for Metcash Hardware and 30 June 2016 for HTH For
per
sona
l use
onl
y
13
Consumer led strategy
SHOPPER LED RANGE amp COMPETITIVE PRICING
BUILD TRADE
DIGITALDATA INSIGHTS
WORKING SMARTER
BEST STORE IN TOWN
SAPPHIRE PROGRAM
Good progress across all Mitre 10 stores
HTH opportunities identified
Combined the best of both to make a better businessFor
per
sona
l use
onl
y
Annette WelshGM ndash Merchandise
Key strategic initiatives
For
per
sona
l use
onl
y
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
l use
onl
y
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
13
Consumer led strategy
SHOPPER LED RANGE amp COMPETITIVE PRICING
BUILD TRADE
DIGITALDATA INSIGHTS
WORKING SMARTER
BEST STORE IN TOWN
SAPPHIRE PROGRAM
Good progress across all Mitre 10 stores
HTH opportunities identified
Combined the best of both to make a better businessFor
per
sona
l use
onl
y
Annette WelshGM ndash Merchandise
Key strategic initiatives
For
per
sona
l use
onl
y
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
l use
onl
y
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
Annette WelshGM ndash Merchandise
Key strategic initiatives
For
per
sona
l use
onl
y
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
l use
onl
y
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
15
Mitre 10 ndash ldquoBest Store in Townrdquo
OBJECTIVE
bull Re-invest in Top 50 stores based on Sapphire Standards
bull Targeted sales uplift 15
ROLL OUT PLAN
bull 10 per yearbull 18 completed to date
RESULTS
bull Store sales up ~17bull Basket numbers up 13bull Basket size up 4
Sapphire stores delivering strong growth in Mitre 10
Equivalent program in HTH ndash ldquoXCLR8rdquo
For
per
sona
l use
onl
y
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
16
Mitre 10 ndash Shopper led range
Growth 6FASTENERS
HAND TOOLSGrowth
10
POWER TOOLSGrowth
9
PAINTGrowth
3
CEMENT
Growth 14
BEFORE AFTER
Core ranging delivering strong sales growth ndash ability to roll out to HTH
SALES GROWTH
For
per
sona
l use
onl
y
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
17
Scan data received from ~120 stores
Competitor pricing information provided to the network (~6000 SKUs)
Competitive pricing program on top 500 KVIs
o gt85 price matched1
Private label provides competitive entry point pricing
o ldquoBuy Rightrdquo has ~250 SKUs
o ~80 price matched1
Merchandising synergies
ldquoClick amp Collectrdquo
Competitive pricing
1 Based on scan data from ~120 stores
For
per
sona
l use
onl
y
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
18
Digital data and insights
LOYALTY PROGRAM
bull Mighty Rewards Loyalty Program in 160 Mitre 10 stores
bull HTH DIY Rewards Card in 134 stores
WEB CLICK amp COLLECTSOCIAL MEDIA
bull Relaunched website Sept 2016
bull 6000 SKUs online
bull Click amp Collect 1100 SKUs
TRADEDIGITAL
bull Targeting the Builder Tradiebull Truck Tracker
bull Tradies Online
bull Dashboard for store managers
bull Benchmarking of company-owned stores
BENCHMARKINGamp ANALYTICS
For
per
sona
l use
onl
y
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
Mark LaidlawCEO Independent Hardware Group
Integration update
For
per
sona
l use
onl
y
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
20
Steering Committee oversight
Key focus areas
o Retention of customers
o Cost synergies
o Merchandise benefits
o Branding
On track to achieve net synergy benefits (after sharing with store owners) at upper end of $15m ndash $20m target range by end of FY18
Integration update F
or p
erso
nal u
se o
nly
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
21
Retention of customers
First gathering of new IHG network at EXPO held in February 2017
o ~2100 attendees including ~1050 store delegates and ~950 suppliers
o High level of goodwill and optimism from store owners
Woolworths removed HTH retention rebate in September 2016
Aligned customer trading terms will deliver benefits to store owners
HTH store owners have remained loyal
Integration update (cont)
Delegates at IHG Expo Feb 2017For
per
sona
l use
onl
y
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
22
Property rationalisation
Two unprofitable stores retained by Woolworths (Launceston Gungahlin) now closed Rationalisation of DC network ndash South Dandenong exit planned for April Head Office consolidated at Heatherton Victoria
Management structure
New leadership team in place (mix of HTH and Mitre 10 executives) Consolidating support service teams
o Merchandising ndash completed o Operations o Marketing o Financeo IT
Integration update (cont)F
or p
erso
nal u
se o
nly
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
23
Merchandising synergies
Focus on delivering store owners the best products at the most competitive prices Alignment of supplier trading terms Consolidation of core ranges Increased volumes expected to result in more competitive pricing Savings to be shared with store owners
Branding HTH and Mitre 10 are both strong brands Review of branding strategy underway Decision expected by end of 2017
Integration update (cont)F
or p
erso
nal u
se o
nly
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
24
Marketing ndash Mitre 10
bull The Block
bull Mighty Rewards
bull Digital (eComm)
bull Scott Cam
bull Sportsbull Radio MMMbull MCG signagebull Footy Tipping
bull Cataloguesbull DoorsPlumbing
bull LAMbull NSW 2GBbull PerthSydneyTasbull SA Gardenbull Facebook
bull Catalogues + TV
bull Click amp Collect
bull Seasonal ThemingFor
per
sona
l use
onl
y
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
25
Marketing ndash HTHF
or p
erso
nal u
se o
nly
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
26
Marketing ndash VideoF
or p
erso
nal u
se o
nly
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
Mark LaidlawCEO Independent Hardware Group
Summary
For
per
sona
l use
onl
y
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
28
bull IHG is clear number 2 in Hardware market with an extensive national footprint
bull Strengthened position in Trade segment which accounts for ~60 of our sales
bull Strong focus on supporting our independent store owners and growing our brand footprint
bull Our Sapphire and Core Ranging programs are delivering strong growth and will be rolled into HTH
bull The integration of HTH is progressing well with a high level of goodwill and optimism within the new expanded IHG network
bull Synergy benefits expected to be at top end of guidance range
bull EBIT contribution from HTH is tracking in line with guidance of gt$10m in 2H17 (excluding integration costs)
Summary F
or p
erso
nal u
se o
nly
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
Strengthened position in Trade segment
Consumer led strategy
Key strategic initiatives
Mitre 10 ndash ldquoBest Store in Townrdquo
Mitre 10 ndash Shopper led range
Competitive pricing
Digital data and insights
Slide Number 19
Integration update
Integration update (cont)
Integration update (cont)
Integration update (cont)
Marketing ndash Mitre 10
Marketing ndash HTH
Marketing ndash Video
Slide Number 27
Summary
Disclaimer
29
DisclaimerThis presentation contains summary information about Metcash Limited (ABN 32 112 073 480) (Metcash) and its activities current as atthe date of this presentation The information in this presentation is of general background and does not purport to be complete Itshould be read in conjunction with Metcashrsquos other periodic and continuous disclosure announcements filed with the AustralianSecurities Exchange which are available at wwwasxcomau
This presentation is for information purposes only and is not a prospectus or product disclosure statement financial product orinvestment advice or a recommendation to acquire Metcash shares or other securities It has been prepared without taking into accountthe objectives financial situation or needs of individuals Before making an investment decision prospective investors should considerthe appropriateness of the information having regard to their own objectives financial situation and needs and seek legal financial andtaxation advice appropriate to their jurisdiction Metcash is not licensed to provide financial product advice in respect of Metcash sharesor other securities Past performance is no guarantee of future performance
No representation or warranty expressed or implied is made as to the fairness accuracy completeness or correctness of theinformation opinions and conclusions contained in this presentation To the maximum extent permitted by law none of Metcash and itsrelated bodies corporate or their respective directors employees or agents nor any other person accepts liability for any loss arisingfrom the use of this presentation or its contents or otherwise arising in connection with it including without limitation any liability fromfault or negligence on the part of Metcash its related bodies corporate or any of their respective directors employees or agents
This presentation may contain forward-looking statements including statements regarding our intent belief or current expectations withrespect to Metcashrsquos business and operations market conditions results of operations and financial condition specific provisions andrisk management practices When used in this presentation the words lsquolikely estimate project intend forecast anticipatebelieve expect may aim should potential and similar expressions as they relate to Metcash and its management are intendedto identify forward looking statements Forward looking statements involve known and unknown risks uncertainties and assumptionsand other important factors that could cause the actual results performances or achievements of Metcash to be materially differentfrom future results performances or achievements expressed or implied by such statements Readers are cautioned not to place unduereliance on these forward-looking statements which speak only as of the date thereof
For
per
sona
l use
onl
y
FINAL_2017 March 24_MTS_Investor Day Hardware Update_Combined
20170323_IHG investor day presentation FINAL_ASX
Investor day ndash 23 March 2017
Contents
Slide Number 3
Metcash
HTH acquisition ndash now second largest in Hardware market
Slide Number 6
IHG management team
IHG ndash second largest player in Hardware market
IHG brands
An extensive national footprint
IHG committed to ldquoSuccessful Independentsrdquo
