Acquisition of Trivantage Holdings Pty Ltd

Strong market fundamentals scee Australia's largest supermarkets continue to invest in their store networks, with spend on new stores and refurbishments being relatively stable over the past 3 years. As a leading provider to this sector, Trivantage is well placed to benefit from ongoing investment which is expected to remain strong Supermarket store network Coles 1.1% CAGR 835 839 843 821 824 809 801 787 776 762 756 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21F FY22F FY23F Woolworths 1.9% CAGR 1,082 1,072 1,062 1,052 1,024 1,008 992 995 961 931 897 Commentary Capital investment is expected to remain strong in the near term, with Coles in particular increasing its spend following a period of under- investment during its ownership by Wesfarmers Woolworths has invested heavily in IT and store renewals after launching its Renewal & Upgrade program in late 2015 which is expected to continue through to FY21. Whilst Woolworths' pace of renewals is now moderating, the business is still targeting 60-80 store refurbishments per year in the medium term Both Coles and Woolworths are also investing strongly in new store formats/fit out options to address evolving consumer demands and particularly with respect to fresh food offerings, which will continue to drive spend in the sector Trivantage's forecast earnings derived from Woolworths and Coles is expected to be underpinned by consistent and robust medium- term capital spend targets FY13 FY14 FY15 Source: Broker Research, Company Filings. Acquisition of Trivantage Holdings Pty Ltd FY16 FY17 FY18 FY19 FY20 FY21F FY22F FY23F 12

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