Strategic rationale for the acquisitions slide image

Strategic rationale for the acquisitions

Strategic fit of acquisitions (cont'd) Metcash is a natural owner of Superior Food, Bianco and Alpine Truss, with the Acquisitions accelerating our Food & Hardware pillar strategies Metcash pillar strategic focus Food A leading supplier of food to independent businesses in Aust. Grow to 3rd largest player in grocery Further improve competitiveness Expansion through accessing adjacent segments and categories Liquor Grow IBA share of independent network Hardware I IHG Extend #1 position in small/medium builders! and grow #2 position in DIY Further improve competitiveness Grow share of on-premise segment I Champion, protect and grow network Consolidate fragmented market Grow Trade through "whole of house" and DIY through "making houses into homes" strategies Total Tools Continue to grow store network • Expansion through adjacent segments and categories I • Continued focus on customer value proposition Strategic fit of the Acquisitions Metcash Superior Food: a complementary and logical acquisition Superior Highly complementary operations: Metcash is the only food distributor of its scale with a supply chain designed to service smaller scale independents - Superior Food is one of the largest suppliers of foodservice to independents Metcash does not currently have a material competing foodservice offering Only Metcash brings the B2B capability and scale to service regional Australia and supply small businesses Strengthens and diversifies Metcash's existing food business Supply chain opportunities (capabilities, reach, frequency and efficiencies) Drives all three layers of Metcash's strategic flywheel Bianco and Alpine align completely with IHG's strategy Highly complementary to existing network ✓ Supports 'whole of house' growth strategy Accelerates network expansion strategy I✓ Broadens offer and enhances customer proposition ✓ Strong track record with IHG acquisitions (incl. synergy realisation and further consolidation) Increases market share in attractive trade hardware segment - Attractive outlook supported by positive through-the-cycle housing growth trends NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 12
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