Investing for growth Annual Report 2019 Contents

02 About Us 03 Purpose, Vision and Values 04 Chairman’s Report 06 CEO’s Report 10 MFuture – Five-Year Vision 12 Financial Highlights 14 Food 18 Liquor 22 Hardware 26 Corporate Social Responsibility 30 Our People 31 Our Board 32 Financial Report 109 ASX Information

01 About Us Our Purpose is ’s leading wholesale distribution and marketing company with sales of over $14 billion in FY19. We believe that it is important to Australia that there is a sustainable, independent, family‑owned business sector. Championing Independent retailers support their local communities. Our Vision We help them to be the ‘Best Store in Town’ by providing Successful merchandising, operational and marketing support across our food, liquor and hardware pillars. Independents

Best Store in Town Our Pillars Our Values

Passionate about independents

We believe: A favourite place to work Independence is worth fighting Food Liquor Hardware for; in treating our people, In Food, we proudly support In Liquor, we are the largest In Hardware, we support the retailers and suppliers the way a network of over 1,600 supplier to independent liquor largest independent hardware Business partner of choice independently owned stores retailers and the largest group in Australia and are a we like to be treated; and in Australia-wide, including the broad range liquor wholesaler leader when it comes to servicing well known IGA and Foodland in Australia. Through our the Trade market. Under the giving back to the communities brands. Our retailer partners Independent Brands Australia Independent Hardware Group where we live and work. mix the charm, knowledge and (IBA) banner group, we support (IHG), we support the leading Support thriving convenience of a local store, ~2,700 stores across leading independent hardware brands communities with the quality and competitive independent brands Mitre 10 and Home Timber & prices of a national one. The stores such as Cellarbrations, The Hardware along with Hardings, we support sit at the heart of the Bottle-O, IGA Liquor, Duncan’s, Thrifty-Link Hardware and True local community, sourcing a range Thirsty Camel, Big Bargain Value Hardware; we supply more of the best products from local and Porters Liquor. than 1,600 stores nationwide. producers and contributing to the local economy.

02 Metcash Annual Report 2019 03 Rob Murray, Chairman

At our strategy day in March we STI bonuses paid to KMP in respect The Board has a strong interest in detailed our MFuture growth initiatives, of FY19 ranged from 47% to 62% of ensuring the company has the right and the related capital investment, maximum, and there will be a 90% culture and behavioral styles. It was which we expect to be able to fund partial vesting of the FY17-19 LTI. pleasing to see the results of our from internal sources. More detail on This is the first time in 12 years an annual employee survey showed MFuture is contained in the CEO report LTI has vested. further improvements in culture and and Pillar sections. behavior across the organisation. The Board believes remuneration Appointment of new CEO Liquor outcomes for the year are a fair The survey also showed that the Board We were pleased to announce during reflection of the performance of and Group leadership team have a the year the appointment of Chris Metcash, our businesses and constructive behavioral style within Baddock as the new Chief Executive management. Metcash, which is important for driving change from the top. Officer (CEO) of the Liquor pillar. Chris’ Last year I advised that we had made a appointment followed the completion significant improvement in gender pay The future of an extensive executive search parity, with the overall gap reducing to At the heart of our strategy continues for a successor to Scott Marshall less than 2%. I am pleased to advise to be the championing of our following his appointment as CEO that we have again narrowed this gap, independent retailers. Our priority of & Convenience in which at the end of FY19 was 1%. is the successful execution of our March last year. Our achievements in this important MFuture plans, which is being well Chris has extensive experience in the area were recognised earlier this year supported by the quality, dedication Liquor market which includes a strong with Metcash receiving an ‘Employer and passion of our leadership team, track record of delivering sustainable of Choice’ citation from the Workplace the Board and our retailers. growth and working with independent Gender Equality Agency. While our markets remain challenging, retailers. We are delighted to have we are encouraged by the confidence Chris join the leadership team. Further detail on our remuneration structure and outcomes for FY19 can of our independent retailers in Chairman’s Report I would like to make a special mention be found in our Remuneration Report the future and their willingness to of Rod Pritchard, who has filled in as commencing on page 46. continue to invest in their stores. interim CEO of Liquor admirably from Together, we are improving the quality March last year. Board update and competitiveness of our retailer networks across Supermarkets, Remuneration In June, we announced that Anne Welcome to Metcash’s Annual Report Strategy update Brennan had notified the Board Liquor and Hardware to underpin This was the final year of our five-year for the year ended 30 April 2019. I am The integration of Home Timber of her intention to step down as their ongoing success. remuneration transition which has pleased to advise that the company & Hardware (HTH) is now largely a non‑executive director due to seen a progressive increase in the Thanks delivered a solid set of financial results complete, with the delivery of further unforeseen and potential conflicts executive ‘at risk’ component of Key On behalf of the Board, I would and continued to successfully execute synergies in the year underpinning related to her other directorships. Management Personnel (KMP) total like to thank all our people, the its strategic initiatives. strong earnings growth in Hardware, Anne will continue as a non-executive reward. The Board determined that this director through to our AGM in August, leadership team, our partner The year also included detailing our despite softer construction activity. was an appropriate time to undertake with appropriate protocols in place to independent retailers and suppliers, plans under the new five-year MFuture HTH has been a successful acquisition a further review of the structure of address the potential conflicts. I would and our shareholders for their program, which aims to deliver a for both Metcash and the broader IHG executive remuneration having regard like to thank Anne for her contribution ongoing support. “At the heart of our pathway to sustainable growth with a retailer network. The network is now to changes in market practice and since joining the Board in March balanced approach to revenue growth more competitive and stronger, and To my fellow directors, thank you strategy continues to be feedback from our shareholders. last year. and cost out. well positioned as the second-largest for your support, commitment and the championing of our player in the market. Commencing in FY20, changes will be We also announced in June that significant contribution to Metcash From a financial perspective, solid made that create an even stronger link over the past year. I am excited about FY19 was the final year of our very Fiona Balfour has decided not to independent retailers. earnings and cash flows were delivered between executive and shareholder our plans for the future and look successful Working Smarter program, stand for re-election at this year’s Our priority is the successful by our Pillars despite challenging outcomes. These include the deferral forward to continuing to work together which has helped offset the impact AGM following almost nine years as a market conditions, and we continue of a component of any STI earned to be as a cohesive Board. execution of our MFuture of inflation over the past three years. non‑executive director of Metcash. The to be well positioned with a strong delivered as equity, and the expansion Total cost savings under the Working Board sincerely thanks Fiona for her plans, which is being well balance sheet. of our minimum shareholding policy Smarter program were ~$125m, well long-term contribution and service to to include KMP. Our KMP will now supported by the quality, Underlying profit after tax for the above our initial ~$100m target. Metcash, which has included providing have the majority of ‘on target’, dedication and passion of year was $210.3m, down slightly on invaluable insight and guidance the prior year. From a shareholder We will continue to have a strong ‘at risk’ remuneration delivered as as Chair of the People and Culture Rob Murray our leadership team, the perspective, underlying earnings per focus on costs under our new MFuture deferred equity. Committee since 2014. Helen Nash Chairman program, which we commenced at the share increased 1.8% to 22.6 cents, While the salaries of certain key has been appointed Chair of the P&CC, Board and our retailers.” start of FY20. Importantly, the new reflecting the benefit of the $150m executives are below the peer group replacing Fiona. program also incorporates a strong share buy-back in August last year. market median, no member of the focus on growing our top line, and Peter Birtles and Wai Tang have been Group leadership team was awarded The Board determined to pay a final includes significant investments to appointed as non-executive directors an increase for the upcoming dividend of 7.0 cents per share, further improve the competitiveness effective 1 August 2019. Both Peter and financial year. bringing total dividends for the year to of our Food, Liquor and Hardware Wai bring a high level of relevant skills 13.5 cents per share – a 3.8% increase retailer networks. and experience to Metcash and we look on the prior year. forward to them joining us.

04 Metcash Annual Report 2019 05 Strengthening our retailer networks

“I am encouraged by the confidence our retailers have shown in the future of our network by continuing to invest Our Community Co private label range Liquor EBIT increased 1.3% to Hardware in their stores.” is now available in all IGA and Supa IGA $71.2m, with the implementation of In Hardware, total sales (including stores nationally. The range has grown the new accounting standard having a charge-through sales) declined 0.9% to 280 products, including a number $1.9m negative impact on the year-on- to $2.10bn. Sales were negatively of fresh items, and we are very pleased year movement. impacted by the slowdown in with how Community Co is being There were a further 81 stores construction activity, the closure of received by our retailers and their refreshed and 110 cool rooms upgraded unprofitable company-owned stores, customers. We have plans to add more during the year. In total, we have and the loss of a large HTH wholesale Community Co products to the range completed ~330 refreshes and ~610 customer in Queensland. On a like-for- Jeff Adams, Group CEO in the coming year. upgraded cool rooms. like basis, total wholesale sales to the We opened the first of our new small IHG banner group increased 2.3%, and In private and exclusive label, the format convenience stores. The store, retail sales through the IHG banner number of SKUs across our wine, beer located at Bondi, group increased 3.0%. and spirit categories increased to ~80; is branded ‘The Fresh Pantry by IGA’, with private label sales continuing to Hardware EBIT increased by $11.9m and is the first of our small format grow, particularly in the wine category, (17.2%) to $81.2m, reflecting additional convenience store trials under the which was up 20% on the prior year. synergy benefits in the year from the MFuture program. HTH acquisition and the benefit from Liquor Quality stores with localised ranges the closure or sale of unprofitable CEO’s Report and personable and knowledgeable company-owned stores. In Liquor, total sales (including service is what differentiates our I am pleased to report that the Group delivered charge-through sales) increased IBA network and provides us with a 5.6% to $3.67bn, reflecting continued competitive advantage. growth in sales to the IBA bannered a solid financial result in highly competitive group and ALM wholesale customers. During the year we invested in, and and challenging market conditions, while A high proportion of this growth is mobilised, a dedicated ‘on-premise’ value driven related to the continuation team which is delivering pleasing continuing to execute its strategic initiatives. of the ‘premiumisation’ trend to higher results. We have historically under- quality but lower consumption. indexed in ‘on-premise’ sales and our plans include targeting the significant Warehouse sales to the IBA bannered opportunity in this segment through From a financial perspective, we Operating performance There was some improvement in network on a like-for-like basis better leveraging our existing network increased 1.9%, supported by the reported an underlying profit after tax The Group reported sales revenue the still highly competitive market and strengthening our alignment with ongoing investments to improve for the year of $210.3m. This included (which now excludes charge-through conditions, particularly in the second key partners. the quality of the store network and solid earnings in both our Food and sales due to the implementation of half of the year, which was evident in the shopper experience. This is the sixth Liquor pillars, and strong growth in new accounting standard AASB 15) of reduction in price deflation for 2H19 to consecutive year of like-for-like sales the Hardware pillar due to additional $12.7bn, an increase of 1.8% on the 0.9%, from 1.3% in the first half. synergies from the Home Timber growth, reflecting the strength of the prior year. Including charge-through In Convenience, sales increased 4.4% to & Hardware acquisition (HTH). IBA network. sales, Group revenue increased 1.4% to $1.56bn due to sales growth from major Underlying earnings per share $14.6bn with sales growth in the Food customers, increased tobacco sales and increased 1.8% to 22.6 cents, and Liquor pillars, partly offset by a the addition of new customers. reflecting the benefit of the $150m small decline in Hardware. Food EBIT was down $5.6m to $182.7m share buy-back in August last year. Group EBIT declined 1.4% to $330.0m, and includes ~$10m investment in Statutory profit after tax for the year with earnings growth in the Hardware MFuture growth initiatives. was $192.8m. This compares to a loss and Liquor pillars being more than I am pleased with the confidence our in the prior year of $148.2m, which offset by a decline in the Food pillar retailers have shown in the future of included a charge of $345.5m (post and a higher Corporate expense. In our network by continuing to invest tax) related to the impairment of the prior year, Corporate included the in their stores. This year we had a goodwill and other assets. benefit from the reversal of a ~$10m provision against the NSW Distribution further 79 stores complete our Diamond Importantly, our Pillars continued Centre hail insurance claim that was Store Accelerator (DSA) store upgrade to generate solid cash flows, which settled in FY18. program, which brings total stores together with our ongoing focus on through the program to ~400 with working capital resulted in operating Food average sales growth of ~10% from cash flow for the year of $244.9m. Our Supermarkets sales (including charge- these stores. As part of MFuture, we financial position remains strong, with through sales) were down 0.5% to have simplified the program which is net debt at the end of the financial $7.24bn, with continued growth on the expected to help accelerate its roll-out year of $42.9m, which is a gearing eastern seaboard offset by a decline in through the remainder of the network. ratio of 3.3%. sales in Western Australia.

06 Metcash Annual Report 2019 07 CEO’s Report continued

We accelerated Hardware’s successful We are also accelerating the successful While we are pleased with these Sapphire store upgrade program Sapphire store upgrade program improvements there is still a long during the year with a further 30 and expanding our market-leading way to go to reach our ‘Zero Harm’ stores upgraded in FY19. We now have digital offer. target. Safety is at the highest level 60 network stores that have been in terms of our priorities and we have From a cost perspective, MFuture takes through the program and have plans to good plans in place to drive further over from our successful Working upgrade a further 140 by 2022. These improvement in FY20. Smarter program and we aim to offset stores have delivered an average retail the impact of inflation over the next Outlook sales improvement of over 15%. We five years. We have already identified also made good progress on our digital In Supermarkets, there has been a initial savings of around $50m over initiatives such as Truck Tracker and continued improvement in the sales FY20 and FY21. Trade Plus that support our strong trajectory of wholesale sales (excluding tobacco) through the first seven weeks Trade business. We have estimated that the potential of FY20. capital investment in MFuture will be We continue to be excited about approximately $300m over the five- the growth opportunities with our As announced, Metcash has entered year period. Hardings plumbing business and are into a five-year supply agreement with Drakes Supermarkets in making good progress with its roll-out In recognition of the strategic Queensland. Metcash, however, in New South Wales and Tasmania. importance of our growth agenda, a expects to cease supplying Drakes The first new store-in-store design new position was created in the Group Supermarkets in South Australia once studio is under construction in leadership team to ensure MFuture is their new distribution centre becomes In Hardware, sales through the first Thanks Tooronga, . driven at the most senior executive operational (expected to be 30 seven weeks of FY20 are lower than I would like to sincerely thank our level. We were pleased to have Matt September 2019). the corresponding prior year period, independent retailers and suppliers, MFuture Havens join us in April this year as reflecting the loss of a major customer and the Metcash team and Board for Our MFuture program is now underway Chief Strategy and Transformation Supermarkets will continue to invest in in Queensland in the first half and their support and encouragement which, as the Chairman outlined, has Officer. Matt has extensive domestic growth initiatives through the MFuture a slowdown in trade sales. It is too throughout the year. We remain a balanced approach to both revenue and international experience in program and expects related operating early to say whether the changes in focused on championing our growth and cost savings. this area. expenditure in FY20 to be in line with the economic environment for the independent retailers; and together From a revenue perspective, we will be Safety that incurred in FY19. The contribution residential housing sector will feed we are looking forward to further investing to drive growth across our to Supermarkets EBIT from the into construction and DIY activity in The safety of our people and those strengthening their competitiveness Food, Liquor and Hardware pillars. resolution of onerous lease obligations FY20, however there appears to be an we engage with is paramount at through the MFuture program, in FY20 is expected to be significantly improvement in the level of confidence In Food, we are focusing on ensuring Metcash, and pleasingly we made good which I believe will underpin their lower than that reported in FY19. Cost in the network post the election. our store footprint positions us to progress in the year towards our ‘Zero ongoing success. savings through the MFuture program Additional cost savings are expected capitalise on the market trend to Harm’ target. in FY20 are expected to help offset to help mitigate the adverse impact of local and convenience shopping. This “The potential capital Adoption of the ICAM incident inflation in the Food pillar. any further slowdown in construction includes a strong focus on our retail investigation methodology has activity in FY20. investment in MFuture brands, including having the right In Liquor, continuation of the helped add further discipline to our will be ~$300m over the brand and offer by format and location. ‘premiumisation’ consumption trend investigation process and deliver is expected to be the key driver of five-year period.” In Liquor, the national expansion of our more robust corrective actions. We Jeff Adams market growth in FY20. The business Group CEO Porters Liquor brand and growth in also introduced a ‘Making Safety is continuing to focus on key MFuture the private and exclusive label range is Simple’ campaign which is focused initiatives including building and aimed at further capturing the trend to on education and awareness. improving the quality of its IBA higher value products. Our initiatives These helped deliver improvements network, growing its share of the ‘on- also include growing our share of in both our key safety measures in premise’ market, the trial of corporate the ‘on-premise’ market, and we are FY19. The Lost Time Injury Frequency stores, expanding private label and the accelerating our digital capability Rate (LTIFR) declined by 36.3% to roll-out of Porters Liquor. and trialing corporate retail stores. 7.59, and the Total Recordable Injury In Hardware, we will focus on Frequency Rate (TRIFR) reduced by leveraging our extensive IHG network 12.4% to 32.15. through our ‘Whole of House’ strategy to grow our proportion of sales in the construction of a house.

08 Metcash Annual Report 2019 09 Our Five-Year Vision Key initiatives

Delivering a pathway to sustainable growth

Food Hardware Liquor Our Strategy • Clear brand strategy • Acceleration of • Grow share of by store format Sapphire program ‘on‑premise’ market • ‘Whole of House’ strategy • National roll-out of A balanced approach to revenue growth and cost out – Appropriate range and pricing • Roll-out of Hardings Porters Liquor • Accelerating successful current initiatives – Small format store pilot Plumbing and Tait flooring • Corporate store trial • Following the shopper into new growth initiatives across the network • Delivered through • Accelerate digital capability • Improving our infrastructure to enable simpler and acceleration • Accelerated roll-out of cheaper processes of DSA program digital capability • Ensuring we have a sustainable cost base into the future

Improved competitiveness for our retailer networks • Product range • Service • Price • Location

Matching store formats to customer shopping missions • Trial of new formats and ownership models

Our Strategy is underpinned by

Retailer support Alignment with Experienced and A history of for our strategic our retailer and tailored teams successful cost- direction supplier partners out programs on what will be delivered

10 Metcash Annual Report 2019 11 Financial Highlights $210.3m A strong financial position Underlying Profit After Tax

$12.7bn $244.9m Group Sales Revenue Operating Cash Flows

Five-Year review

Financial Performance 2019 2018 2017 2016 2015 Sales revenue1 ($m) 12,660.3 12,442.2 12,293.0 11,716.5 11,604.2 Underlying EBIT2 ($m) 330.0 334.6 304.8 286.7 310.6 Finance costs, net ($m) (28.9) (26.4) (33.6) (38.3) (68.4) Underlying profit after tax2 ($m) 210.3 216. 9 194.8 178.3 173.6 Reported profit/(loss) after tax2 ($m) 192.8 (148.2) 171.9 216.5 (384.2) Operating cash flows ($m) 244.9 276.3 304.6 165.8 231.7 Cash realisation ratio (%) 92% 101% 118% 70% 97% $12,660.3m $210.3m $244.9m Financial Position Shareholders’ equity2 ($m) 1,250.1 1,334.2 1,583.2 1,369.1 1,156.6 Net debt/(cash) ($m) 42.9 (42.8) 80.8 275.5 667.8 $330m 22.6c Gearing ratio (%) 3.3% – 4.7% 16.8% 36.6% Return on funds employed (%) 27.7% 24.4% 19.0% 17.2% 15.1% Share Statistics

Fully paid ordinary shares 909.3 975.6 975.6 928.4 928.4 334.6 330.0 216.9 210.3 12,660.3 Weighted average ordinary shares 928.6 975.6 958.8 928.4 907.0 194.8 304.6 178.3 12.442.2 173.6 276.3 310.6 22.6 12,293.0

2 22.2 244.9 304.8 Underlying earnings per share (cents) 22.6 22.2 20.3 19.2 19.1 231.7 20.3 2 165.8 11,716.5 286.7 19.1

Reported earnings/(loss) per share 20.8 (15.2) 17.9 23.3 (42.4) 19.2 (cents) 11,604.2 Dividends declared per share (cents) 13.5 13.0 4.5 – 6.5 Dividend payout ratio (%) 60% 59% 22% – 34% Share Statistics Number of employees 6,378 6,378 6,708 5,807 6,398 (full-time equivalents)

1. Sales revenue has been adjusted to reflect the new Accounting Standard AASB 15 in all reporting periods. 2. EBIT, Profit after tax, Shareholders’ equity and EPS have been adjusted to reflect AASB 15 in FY19 and FY18. There have been no adjustments to earlier reporting periods.

15 16 17 18 19 15 16 17 18 19 15 16 17 18 19 15 16 17 18 19 15 16 17 18 19

Sales EBIT PAT EPS Operating (Underlying) (Underlying) (Underlying) cash flows

12 Metcash Annual Report 2019 13 New DSA store – Romeo’s Foodland, Rundle Mall, , SA

Food

In Supermarkets, we proudly support a network of over 1,600 independently-owned stores Australia- wide, including the well known IGA and Foodland brands. In our Convenience business, we provide a ‘one wholesaler solution’ for more than 90,000 customers nationwide, including forecourt retail, convenience businesses, small coffee shops, fresh food outlets, and restaurants. Your local store Community Co has been awarded No two independent stores in our 15 Product of the Year Awards since network are alike, from the products its launch, including 10 in FY19. The they sell to the charities and range has been well received by both organisations they support and the retailers and shoppers and has grown local people who work there. They to represent approximately $100m of sales on an annualised basis. IGA national network of stores sit at the heart of their communities, perfectly tailored for the locals. FY19 sales and earnings Our retailers mix the charm, knowledge Total Food sales (including charge- and convenience of a local store with through sales) increased 0.3% the quality and competitive prices to $8.79bn. Supermarkets sales of a national one. Being part of a (including charge-through sales) were network of 1,600 stores means that down 0.5% to $7.24bn, with continued we can offer everyday low prices on growth on the eastern seaboard again the products that matter most to being offset by a decline in sales in Since its launch in 2017, customers. It is these attributes that Western Australia; albeit there was an Community Co has been create a point of difference for our improvement in the sales trajectory in QLD awarded 15 Product 255 retailers that local communities value. Western Australia. There was also an WA improvement in the sales trajectory of the Year Awards, 236 Our independent retailers are active of retail sales across our IGA network, SA in their communities and support a with LfL1 sales down 0.5% compared including 10 in FY19. 214 variety of local charities, sporting to a decline of 0.9% in the prior clubs, schools and other initiatives comparative year. Convenience sales NSW via our Community Chest program. VIC increased 4.4% to $1.56bn reflecting 329 Local communities also benefit sales growth from major customers, 351 through contributions to Community increased tobacco sales and the Chest from the sales of our Community addition of new customers. Co private label range, while delivering Food EBIT decreased 3.0% to Major Distribution Centre great value to customers. Community $182.7m. A decline in wholesale sales Co has continued to expand its taste- (excluding tobacco) and an investment IGA branded stores comprise 1,385 tested quality range since its launch in of our retailer network, proudly in MFuture growth initiatives of ~$10m FY17 and is now available in all IGA and were partly offset by an incremental supported by five major distribution Supa IGA stores nationally. A further centres and smaller regional centres. contribution from the resolution of 100 products were added to the range onerous lease obligations and higher during the year including a number of joint venture earnings. fresh items. We now have around 280 products in the range and expect to grow this to around 750.

1 Scan data from 1,118 IGA stores

14 Metcash Annual Report 2019 15 DSA store – Romeo’s IGA Food hall, Summer Hill, NSW

Our Supermarkets business is well Our key growth initiatives have been positioned to capitalise on the global endorsed by the representative body trend to small format convenience of our independent retailers. This is stores with our network having an important step in the successful approximately 500 IGA Xpress and execution of our growth strategy for small IGA stores situated in easy to the next five years. access convenient locations. Our There is renewed confidence across current focus is on ensuring we get the our independent retailers and this offer right for this store format and is driving increased investment we are in the process of undertaking through both store upgrades and a 10-store trial to test the concept in the establishment of new stores. different market demographics. The This, together with the support and first trial store opened in May this passion from Metcash, is expected to year at Bondi, New South Wales under further improve the competitiveness the brand ‘The Fresh Pantry by IGA’. of our retailers and underpin their This next generation of small format ongoing success. stores will have a strong focus on fresh products including meal solutions, while also catering for customers who want to do a full shop. They operate under a low cost operating model that enables more competitive pricing for shoppers.

Food continued

MFuture growth initiatives At the centre of our strategy is a Our successful Working Smarter redesign of our brands based on program has been an important the shopper mission, store size and contributor to earnings over the past retail offer. Our network will have a three years in an environment of range of IGA endorsed brands, each intense competition, price deflation with a differentiated product range and weak economic conditions in and consistent store standards. They We are uniquely Western Australia. FY20 represents will also have competitive everyday the start of the next five-year pricing and unmatched local service. positioned to leverage phase of our strategy which is The new brand strategy will be the global shopper trend designed to further improve the delivered largely through acceleration to smaller and more competitiveness of our independent of our Diamond Store Accelerator retailers and drive sales growth, as (DSA) program. Store upgrades will be frequent shopping. well as simplify our operations and linked to ensuring each store has the deliver cost efficiencies. right brand by format and location, At the core of our strategy is ensuring as well as the right range, pricing and we follow the global shopper trend shopper experience. As at the end to smaller and more frequent local of FY19, ~400 stores had completed shopping and the delivery of a the DSA program and a further ~500 personalised experience. We are network stores have been identified as uniquely positioned to leverage this potentially suitable for the program. trend through our extensive network of The process for retailers to participate large, medium and small supermarkets in the program has been simplified to in convenient locations run by help accelerate its roll-out through New DSA store – Ritchie’s IGA, Rowville, VIC passionate independent retailers. the network.

16 Metcash Annual Report 2019 17 Store refresh – Cellarbrations at Foxxys, Kilmore, VIC Liquor

We are the largest supplier of liquor to independently owned liquor retailers in Australia and the largest broad range liquor wholesaler in Australia. Through our Independent Brands Australia division we supply around 2,700 liquor retail outlets and we supply over 12,000 liquor customers from our Australian Liquor Markets division. IBA national network of stores

Independent Brands Australia (IBA) Australian Liquor Marketers (ALM) FY19 sales and earnings NT The IBA network includes a stable ALM supplies over 12,000 liquor Total Liquor sales (including charge- 25 QLD of strong national brands, including customers. In addition to supplying through sales) increased 5.6% to 252 Cellarbrations, The Bottle-O, IGA liquor stores, ALM incorporates a $3.67bn, reflecting continued sales WA Liquor, Duncan’s, Liquor @, Thirsty specialist on-premise liquor division growth in the IBA bannered group and ALM wholesale customers. A 134 Camel, Big Bargain and Porters that supports bars, pubs, restaurants SA high proportion of this growth is Liquor. It is the second-largest and hotels. It also provides a similar 87 value driven related to continuation network of liquor retail outlets in supply service in New Zealand via of the ‘premiumisation’ trend to NSW Australia with approximately 2,700 the Tasman Liquor Company. higher quality but less consumption. stores. We support IBA bannered 323 Through our network of 14 Warehouse sales to the IBA bannered retailers through a framework 1 VIC distribution centres located network on a LfL basis increased 1.9%, that offers national buying power, supported by the ongoing investments 565 in each State and Territory in marketing support, shopper-focused to improve the quality of the store Australia, and in New Zealand, we promotional programs and network network and shopper experience. TA S NZ support independent businesses investment to provide the ‘Best Store with a competitively priced and Liquor EBIT increased 1.3% to $71.2m 101 116 in Town’. extensive liquor range, delivered and includes a negative impact of $1.9m on the year-on-year movement Our IBA network is well positioned through our cost effective and Distribution Centres arising from the implementation of the to meet current shopper trends efficient supply chain. new accounting standard AASB 15. Our IBA retail network consists with local and convenient store of ~1,600 Tier 1 bannered stores locations, tailored ranges and across Australia and New Zealand. marketing programs. The IBA retail network has grown to represent approximately 55% of total sales in the Liquor pillar.

Liquor sales increased 5.6% to $3.67bn

1 Scan data from 1,163 stores we supply (branded and unbranded). 18 Metcash Annual Report 2019 19 New store refresh – IGA Liquor, Strathfieldsaye, VIC

To support our growth in the higher- Our strategy includes strengthening value segment we acquired the well our alignment between key partners, known premium brand Porters Liquor better leveraging our existing network in 2017. We commenced a roll-out of and investing in a dedicated ‘on- Porters following the completion of a premise’ team. branding review and the establishment We have commenced trialing of an expansion model in FY18. We corporate stores with the potential expect to grow the network from to establish a portfolio of ‘best in 21 stores in New South Wales to class’ company‑owned stores. These approximately 100 stores nationally stores provide a platform to ‘test and over the next few years. learn’ new retail concepts, thereby Our most recent Porters store was helping to provide confidence and opened at North Narrabeen, New support to our retailers when rolling South Wales in April this year, and out new programs across the network. We remain focused on our first Porters store in Victoria is The 10-store trial is expected to be growing our ‘award planned to open at Moonee Ponds at completed by the end of FY20. the end of July 2019. winning’ private and exclusive label ranges, and Our growth strategy includes a renewed focus on increasing our share have approximately 80 of the ‘on-premise’ liquor market. products across the wine, Historically we have under-indexed in ‘on-premise’ sales and this provides a beer and spirit categories significant growth opportunity. with potential to further expand the range.

Liquor continued

MFuture growth initiatives This technology helps to further We are continuing to progress improve the planning and analysis current initiatives designed to of our retail promotional campaigns, deliver ‘The Best Store in Town’ for as well as predict and optimise their our retailers. This includes ongoing effectiveness at a product, category investment to improve the quality of and location level. The use of this the IBA store network and shopper technology will enable us to provide experience through further store more tailored promotional campaigns refreshes and cool room upgrades, as to ensure our independent retailers well as ensuring our product ranges are delivering the offers that their meet changing consumption trends customers want. and local tastes. We remain focused on growing Our support to IBA independent our ‘award winning’ private and retailers includes providing exclusive label ranges, and now have promotional programs to ensure they approximately 80 products across the remain competitive. In June 2019 we wine, beer and spirit categories with began working with Complexica to potential to further expand the range. incorporate artificial intelligence (AI) We have a strong focus on growing the into our promotion planning. wine category which now represents 85% of total private and exclusive label sales. The quality of the private and exclusive label wines has been recognised widely with over 50 awards received in FY19. New Porters Liquor - part of the New South Wales brand roll-out

20 Metcash Annual Report 2019 21 During 2019, Mitre 10 Hardware achieves a significant milestone – its 60th New Sapphire store – Hume & Iser Mitre 10, Bendigo, VIC anniversary since Metcash’s Independent Hardware Group (IHG) establishment in 1959. is the largest independent hardware group in Australia, and a leader when it comes to servicing the Trade market. Mitre 10 is the ‘mighty helpful’ and the largest independent network of hardware operators with over 300 stores, located in metro and regional areas, across Australia. Mitre 10’s Trade customers include national residential builders through to the local handyman – with the right service and Home Timber & Hardware also has a FY19 sales and earnings national footprint of approximately Hardware sales (including charge- products to help tradies ‘get in, get out and 180 stores with a strong Trade focus, through sales) declined 0.9% to highlighted by its ‘Go Where the $2.10bn. Sales were negatively get on with it’. Tradies Go’ brand essence. impacted by the slowdown in In addition to the Mitre 10 and Home construction activity, the closure of unprofitable company-owned stores, IHG national network of stores Timber & Hardware brands, IHG supports independent operators under and the loss of a large HTH wholesale the small format convenience banners customer in Queensland. Total LfL Thrifty-Link Hardware and True Value wholesale sales to the IHG banner 1 Hardware, as well as a number of group increased 2.3%, supported unbannered independent operators. by MFuture initiatives, including the IHG also includes a full bathroom and Sapphire store upgrade program. kitchen appliance offer through the Retail sales through the IHG banner 2 wholly owned Hardings business. group increased 3.0% on a LfL basis. IHG is Australia’s largest home Hardware EBIT increased by $11.9m or improvement wholesaler supplying 17.2% to $81.2m, reflecting additional more than 1,600 stores nationwide. synergy benefits in the year from the 107 53 1 These stores cater to a broad range of HTH acquisition and the benefit from Trade and DIY customers and range the closure or sale of unprofitable 30 43 2 from large format warehouses to company-owned stores. convenience operations and Trade 56 30 centres, as well as frame and truss sites in two States. 79 82 1 The culture of IHG is built on being a low cost and transparent business partner to our members, with an unwavering commitment to protect 17.2% and grow a sustainable independent increase in 74 88 1 hardware sector for the long term. Hardware earnings Mitre 10 and True Value

HTH and related brands 22 4 Distribution centres 1 Includes sales to independent retailers and company-owned stores. 2 LfL sales growth based on a sample of 171 network stores that provide scan data.

22 Metcash Annual Report 2019 23 We currently have 92 corporate or joint venture stores in the IHG network and expect to add more stores as part of our MFuture plans. These stores help underpin independent retailer confidence by enabling the trial and testing of new concepts, as well as providing an exit route for independent retailers without a succession plan for their business.

New Sapphire store – Tait Mitre 10, Mount Waverley, VIC We continue to invest in our leading digital offer and now have over 400 network stores that have adopted our ‘Click & Collect’ program. ‘Click & Collect’ sales are proving popular with DIY customers and are growing strongly, albeit from a low base. We are now rolling out the program to our HTH retailers and believe ‘Click & Collect’ sales could reach around 5% of total IHG sales within the next few years. Our digital offer focused on assisting Trade customers is also increasing strongly in take-up. The offer includes our ‘Truck Tracker’ app, which enables customers to monitor their delivery, including when it will arrive Hardings roll-out across the IHG network on site. Further investment in digital technology is planned to ensure we continue to provide the best possible Hardware continued service for our customers.

MFuture growth initiatives Our MFuture growth initiatives include We are pleased with the progress of leveraging IHG’s extensive retail our Sapphire store upgrade program network to increase our participation which has delivered average sales in the supply of a greater range of growth of over 15% for the 60 stores products in the building of a house, that have completed the program to where historically this has focused on date. Our MFuture program includes the supply of timber and fasteners. We accelerating the roll-out of this have identified opportunities to expand Our Trade Only stores program to enable a further 140 stores supply through our ‘Whole of House’ are located and set up to to be upgraded by 2022. strategy, potentially up to 70% of a house build. provide convenience for Under the Sapphire program stores Trade customers, with the are modernised to keep them leading Our plans include participating in edge and shopper friendly, including each stage of building a house, from primary aim of allowing having a colour centre at the front of the foundations through to frame and them to ‘get in and get out’ the store and a well positioned helpful truss, lock-up, fixing and finally the hub with kiosk and digital facilities. The fit-out. We are now able to participate as quickly as possible. upgraded stores include a core range in frame and truss construction in of products across the key categories every State, and we are rolling out of fasteners, hand tools, power tools, our quality Hardings Plumbing range paint and cement. across the IHG network. We have also established alliances to participate The Sapphire program is being rolled in other areas including the supply out across a mix of store formats and installation of plasterboard and including small DIY, mixed Trade and insulation, and the supply of appliances DIY, and our new Trade Only stores. and kitchens. Our Trade Only stores are located and set up to provide convenience for Trade customers with the primary aim of allowing them to ‘get in and get out’ as quickly as possible. We now have New Sapphire store - Versatile Mitre 10, Perth, WA 11 Trade Only stores and expect to increase this to 40 stores by 2022.

24 Metcash Annual Report 2019 25 Food donation and food waste To support our community to reduce The program involves working Every year Metcash and our independent household food waste we created a with various companies to deliver retail network donates food and non- Food Smart Challenge through our information on health and nutrition, food items to Foodbank and Oz Harvest. IGA Family Program. This program including providing meal recipes and This year over 420,000 kilograms provided participants with resources to fact sheets for families. Currently we of food and non-food items from our understand their own household food have over 25,000 families registered distribution centres and store network waste and ways to reduce it, including to the program, which is operating in Corporate Social Responsibility were donated and distributed to people providing a free Food Smart Kit. 600 IGA stores across Australia. in need. Healthier choices and healthier In 2017, the IGA Family Program This year we also worked with the communities partnered with the Stephanie Food For Change Foundation to trial We understand our role in supporting Alexander Kitchen Garden Foundation a new local community food rescue healthy communities through the to assist schools to establish kitchen Being a responsible corporate citizen is and donation program. The primary development and ranging of nutritious garden programs to help children aim of this partnership is to link local products, as well as the provision of understand how to grow, harvest fundamental to our operating principles and a retailers with local charities to ensure useful information to assist people and cook fresh, healthy food. The that available food is rescued from looking to make healthier food choices. program has continued to grow key foundation to our business strategy. This landfill and instead provided to those in with 40 school kitchen gardens now need in the local community. Through This year we launched more healthy established across Australia, providing year we made further progress with our social the Food For Change Foundation and choice options under our Community hundreds of school children with the our Corporate stores we facilitated Co range, including salads, fresh opportunity to grow, harvest and cook and environment practices – particularly in the provision of over 28,000 meals vegetables and snacking options. fresh, healthy produce. community support, reducing the gender pay to locals in need. Our IGA Family Program provides During the year Metcash was awarded communities with access to a range of gap, safety and energy usage. two grants from the NSW EPA totalling educational resources on how to live a $80,000 to roll out programs to healthier lifestyle, including nutritious support our IGA retailers to reduce recipes and lifestyle education. food waste. We have been working with expert Sustainability Consultants, Community and charities Special Olympics Australia is a charity EDGE Environment, to monitor and record close to our hearts and one which waste, engage staff and implement food Our extensive network of waste avoidance strategies. independent retailers across Australia we have supported for 28 years. means we are a key contributor to local IGA was a Gold Partner for the 2019 communities. No two communities Special Olympics and contributed are the same, and we believe our approximately $300,000 to help fulfil ability to build and foster relationships the dreams of our competitors at the within each community, and tailor Summer Games held in Abu Dhabi. our support to specific communities, Metcash staff participated in the is what sets us apart. annual Vinnies CEO Sleepout held at The IGA Community Chest Fund various venues across Australia and, (IGA CCF) has helped to support local together with additional Community communities for over 30 years. This Chest support, raised over $300,000 year we supported more than 1,600 to help provide shelter and support local community groups, schools and services to those in need. sporting clubs as well as local and Through our Community Chest fund national charities. A total of $3.5m we also delivered financial support to of donations were made this year, Drought Angels to support the many bringing total donations since inception people hit hard by the devastating Our support of the of the fund to approximately $85m. drought across the eastern States Through the IGA CCF, we continue of Australia. Stephanie Alexander to support the McGrath Foundation, In October 2018, we supported dairy Kitchen Garden Foundation St Vincent de Paul (Vinnies) and the farmers through the sale of our has provided hundreds Special Olympics Australia. Other Community Co fresh milk sold in IGA recipients of charitable donations stores in New South Wales, Victoria of school children with included the Lord Mayor’s Charitable and Queensland. the opportunity to grow, Trust, Guide Dogs Queensland, the Olivia Newton John Cancer Donations of 12 cents for 2-litre varieties harvest and cook fresh, Wellness Centre, the Humpty Dumpty and 17 cents for 3-litre varieties were healthy produce. Foundation and the Special Children’s allocated directly to drought-affected Christmas Party. farmers in those States via our IGA CCF. Metcash did not participate in In 2019 we celebrated 10 years of the $1 per litre milk offer due to the partnership with the McGrath negative impact this has had on farming Foundation, and over this period we communities and the supply chain. have helped fund three specialist breast care nurses in regional Australia.

26 Metcash Annual Report 2019 27 Corporate Social Responsibility continued

People We also introduced a ‘Making Safety Royal Flying Doctor Service Environment Our people are our most valued Simple’ campaign which is focused on education and awareness. In 2019, IGA entered a three-year Responsible sourcing asset, with belonging and inclusion collaborative sponsorship with Royal fundamental to our culture and Metcash is committed to the Other initiatives included an increased Flying Doctor Service (RFDS) Central responsible sourcing of products core values. We recognise that each emphasis on the identification and Operations. As part of the sponsorship, person has unique strengths and that sold under our private label brands rectification of hazards to make our IGA helps facilitate the purchase of and continues to raise awareness high performance is underpinned by workplace safer, and the successful future RFDS aeromedical aircraft. embracing those strengths. for responsibly sourcing products trialling and implementation of There are also two IGA-badged full- within our business and across our Progress against gender targets is the ‘Shockwatch’ mobile plant and sized aeromedical training simulators independent retailer network. regularly reported to the Board and pedestrian safety system into high in South Australia and Northern includes a focus on improving female traffic areas at our Laverton distribution Territory which are used by RFDS pilots We are a member of various global representation in leadership and in roles centre. We have also included leading for training and education. organisations focused on the traditionally occupied by males. Our safety indicator activities into leadership responsible sourcing of products, role scorecards. Tony Vaughan ASM, CEO of RFDS including the Roundtable on workforce at the end of FY19 comprised Central Operations, says the Last year Metcash and our 31.4% females and 68.6% males, Sustainable Palm Oil (RSPO). This FY19 included improvements in both significance of IGA’s financial support includes working with our suppliers independent retailers committed to Drought Angels supported by our equal opportunity our key safety measures. The Lost is that it will reach far and wide – and eliminate the distribution and sale to ensure that 100% of the palm oil Staff and customers across hiring policies. The gender mix of the Time Injury Frequency Rate (LTIFR) deliver lasting community benefits. of single use plastic bags. To assist used in our private label food products Australia have rallied within their Metcash Board at the end of FY19 was declined by 36.3% to 7.59 and the customers in the transition from “The RFDS conducts over 100 is RSPO-Certified Sustainable Palm local communities to fundraise 66.7% female and 33.3% male. Total Recordable Injury Frequency Rate single use to environmentally friendly aeromedical flights across Australia Oil (CSPO). This year we commenced for Drought Angels, a charity that (TRIFR) reduced by 12.4% to 32.15. alternatives, we developed a range Metcash’s commitment to drive gender every day – airlifts 25 South a review of our non-food private supports farming families affected of reusable bags that were made pay equality is reflected in Group CEO While we are pleased with these Australians and Territorians every label brands to identify whether they by the drought. available in stores. Since the ban we Jeff Adams being a Gender Pay Equity improvements there is still a long way day – but it relies on the support from contain any palm oil derivatives. have taken out close to a billion single In addition to many local initiatives Ambassador with the Workplace Gender to go to reach our ‘Zero Harm’ target. the community to keep its crews in Equality Agency (WGEA). Metcash is committed to only selling use plastic bags from circulation. We to support farmers doing it tough, Safety is at the highest level in terms of the sky.” free range eggs under its Community our priorities and we have good plans remain committed to working with IGA stores throughout the nation This year we further reduced the gender “Our association with locally-owned Co private label range and is working our suppliers to reduce the use of have enabled customers to buy pay gap to 1%, compared to 2% in FY18. in place to drive further improvement in line with industry expectations in FY20. IGA stores stretches for decades, and plastic and identifying ways to further Raindrop Tokens for $2, raising more Our achievements in gender pay equality it’s terrific to now have the company around sourcing free range eggs reduce plastic across the network. than $800,000 for Drought Angels were recognised in February this year In addition to our focus on safety, also supporting our work in this for all private label brands. Many to provide support to farmers. Metcash has also continued to work with the awarding of a citation from Metcash provides employees with tangible manner. IGA’s sponsorship of our independent retailers have on opportunities to reduce the use Founding Director of the Chinchilla- the WGEA as an Employer of Choice the opportunity to access a range will directly support our capital-raising already taken a strong stance on of soft plastic as a member of the based charity Drought Angels, for Gender Equality. of benefits to promote health and program for ongoing upgrades to our responsible sourcing and source only Australian Packaging Covenant’s Soft Natasha Johnston, said the huge wellbeing. These include flexible working fleet of medically-equipped aircraft free range and cage-free eggs from Initiatives implemented in FY19 to Plastic Working Group. This includes fundraising support would help the arrangements, wellbeing leave days, that deliver emergency aeromedical local producers. Our independent support diversity and enhance inclusion analysing the use of soft plastics thousands of farmers registered paid parental leave and allowing eligible services throughout South and IGA retailer in Warrandyte, Victoria, in our workplace included: packaging materials in Australia and as needing assistance as well as employees to access an additional week Central Australia.” was the first known in • Promotion and leadership support of leave per year. Australia to only stock cage-free eggs identifying projects to help drive the enabling their army of volunteers for flexible working arrangements, IGA retailers are passionate about from Australian producers. delivery of the recently announced to provide assistance where it is including start-finish times, shift Human rights and modern slavery giving back to their local communities National Packaging Targets. needed most. and RFDS has been awarded the most We remain committed to the delivery options, job sharing, work from home; Metcash has a wide and diverse “It’s overwhelming in every way for reputable charity brand in Australia for of 100% Forest Stewardship Council Emissions and energy reduction supply chain that encompasses goods these farmers but knowing that so • Establishing a Diversity & Inclusion the last eight years. RFDS covers both certification for all our private label We have continued to see the benefit and services from both food and many people support them, in spirit and Committee to champion diversity metro, regional and remote locations brand toilet paper, tissues and paper of initiatives implemented to reduce non‑food sectors. by giving from their own pockets, can awareness, flexible working and gender in South Australia and Northern towels and continue to work with our energy consumption across the make an enormous difference as they equality across the business; and The company is committed to upholding Territory, many of which are also suppliers to meet this goal. Group. Total energy consumption for human rights within our business the year declined 8.5% from 408,125 get up every day and keep going while • Tailoring parental leave policies to served by IGA stores. The partnership and across our supply chain. We Waste and recycling GJ in FY18 to 373,307 GJ, resulting in hoping for rain,” Ms Johnston said. support both women and men. works seamlessly with IGA’s values, acknowledge our role and responsibility which include giving back to the This year we further increased the the company exceeding its target of a “Funds are used where and how they We believe there is much to be proud of in in seeking to safeguard human rights local communities. amount of waste diverted from landfill, 10% reduction in energy usage over are most needed – some families need how Metcash has addressed equality and through responsible, ethical and from 82.5% in the prior year, to 86%. the four years ending FY20. food, water and basic necessities; balance for all employees. sustainable business practices. This mainly comprised paper, plastics Our distribution centres and others need help financially for and cardboard sent for recycling as everyday things like fuel or feed Safety and wellbeing Metcash’s first year of reporting well as organics and food waste sent warehouses are the largest users against the requirement of the Modern or getting the kids to school,” Ms The safety of our people and those we for composting. of energy across the Group and Slavery Act is the financial year ending Johnston said. engage with is paramount at Metcash, represent our greatest opportunities 30 April 2020. We have an ongoing focus on and pleasingly we made good progress in for further energy reduction. This reducing our waste that goes to the year towards our ‘Zero Harm’ target. includes our new distribution centre landfill and continue to work with our in South Australia that is expected The importance of safety at Metcash contractors, building managers and to be completed in mid 2020, where is represented by the Safety function people to promote better recycling we have identified the potential reporting directly to the Group CEO. and recovery. introduction of solar. Adoption of the ICAM incident Together with our landlords, we are investigation methodology in the year currently assessing the opportunity has helped add further discipline to to introduce solar into our other the investigation process and deliver distribution centres and further more robust corrective actions. reduce our emissions footprint.

28 Metcash Annual Report 2019 29 Our People Our Board

Jeff Adams Mark Laidlaw Scott Marshall Rod Pritchard Robert Murray Jeff Adams Fiona Balfour Anne Brennan BA, Business Administration B.Ec, CPA B.Business Dip. Marketing MA Hons, Economics (Cantab) BA, Business Administration BA (Hons), MBA, Grad Dip IM, FAICD BCom (Hons), FCA, FAICD and Management and Management CEO CEO Interim CEO Non-executive Chairman Non-executive Director Non-executive Director Group CEO Group CEO, Executive Director Independent Hardware Group Supermarkets & Convenience Australian Liquor Marketers Chair of the Nomination Chair of the People and Culture Member of the Audit, Metcash Group Mark joined Metcash in 2001 Scott began his career with In 2015 Rod joined ALM Committee. Committee, Member of the Risk and Compliance Jeff has over 40 years of retail and was appointed CEO of Metcash in the ALM business and was General Manager, Nomination Committee. Committee, Member of experience across domestic Mitre 10 Australia in May 2010. over 26 years ago and was Merchandise for three years the Nomination Committee. and international businesses Mark has extensive experience appointed CEO of ALM in before being appointed as December 2013. In March in the United States, Europe, in general management, sales, interim CEO in March 2018. 2018 Scott was appointed Asia, Central America and the operations and commercial Rod has over 19 years’ Middle East. Most recently, CEO, Supermarkets & management and prior to Convenience. His areas of experience in the liquor Jeff was CEO of Operations joining Metcash, Mark worked experience cover warehousing industry, including a 15-year for Turkey at Tesco Kipa. for Mobil Oil. operations and management, period with Brown‑Forman sales, retail operations, State (operating as Swift & general management and Moore until 2006). marketing management.

Brad Soller Matt Havens Edwin Gear Penny Coates Tonianne Dwyer Murray Jordan Helen Nash Julie Hutton B.Comm, B.Acc, M.Comm, CA (SA) BA Hons, MBA B.Sc, MBA BA Hons, Chartered Fellow BJuris Hons, LLB Hons, GAICD MPA BA Hons, GAICD B Asian Studies (Viet), LLB, CIPD, GAICD LLM, GAICD Group CFO Chief Strategy and Chief Information Officer Non-executive Director Non-executive Director Non-executive Director Chief People and Culture Officer Company Secretary Metcash Group Transformation Officer Edwin joined Metcash in Chair of the Audit, Risk and Member of the Audit, Risk and Member of the People and Brad joined Metcash in January Metcash Group 2014 and was appointed Penny joined Metcash in 2015 Compliance Committee, Member Compliance Committee, Member Culture Committee, Member of 2015 and prior to that was Matt joined Metcash in April as Group CIO in April 2015. as Chief People and Culture of the Nomination Committee. of the Nomination Committee, the Nomination Committee. the CFO of David Jones and 2019 bringing over 25 years Edwin is responsible for IT’s Officer. Penny has extensive Member of the People and CFO of Lendlease. Brad is a of experience in strategy, crossfunctional collaboration international HR and line Culture Committee. Chartered Accountant having transformation and growth from with Group companies. Before management experience worked with PwC in both London his work in the United States, joining Metcash, Edwin held gained in the retail, financial and Johannesburg. Europe and Asia. Prior to joining various executive roles in services and professional Metcash, Matt was a Partner merchandising, logistics and services industries. Prior to with BCG Digital Ventures where technology with Foodstuffs joining Metcash, Penny worked he specialised in customer-led Wellington and Mitre 10 in for TAL as its Chief Customer business transformation. New Zealand and Supergroup Service and Operations Officer. in South Africa. For Directors’ biographies, please see page 41 of the Annual Report. For more information on Board evaluation, please refer to the Corporate Governance page on our website: www.metcash.com/corporate-information/corporate-governance. 30 Metcash Annual Report 2019 31 Financial Report Directors’ report For the year ended 30 April 2019 ForDirectors’ the year ended 30 report April 2019  *-/# 4 - ) тп+-$'спрш

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Ҋ $,0*-, and will assist with Chris’ transition into the roleѵ -)$)". !*- $)/ - ./) /3җ Ҙ ттпѵп ттуѵх *)$)) 24 -2.++*$)/ #$-*!/# 0 $/Ѷ$.&) *(+'$) *(($// җҘfollowing Patrick Allaway’s reti- ( )/  /!$)) *./. җсчѵшҘ җсхѵуҘ !-*(#$.-*' .*)Ҋ 3 0/$1 $- /*-) #$-*!/# $) 0) спрчѵ ) -'4$)"+-*!$/ !*- /3 тпрѵр тпчѵс 3 3+ ). *)0) -'4$)"+-*!$/ җччѵфҘ җччѵфҘ Dividend declaration *)Ҋ*)/-*''$)"$)/ - ./. җсѵтҘ җсѵчҘ ) -'4$)"+-*!$/!/ -/3җҘ српѵт срхѵш # *- #. / -($) /*+4!0''4!-)& !$)'рш $1$ ) *!цѵп )/.Ѷ2#$#- +- . )/.!0''4 - $1$ ) +4*0/-/$**! )/$/ (. җсфѵпҘ җтчпѵрҘѵ $")$!$ -#- ."($(-"($4'- (!*ڿхп 3 ) !$///-$0/' /*.$")$!$)/$/ (. цѵф рфѵп   /+-*!$/ҝҗ'*..Ҙ!*-/# 4 - ршсѵч җручѵсҘ уѵ 4!$))$'( .0- .    ) -'4$)" -)$)".+ -.#- җ )/.ҘҗҘ ссѵх ссѵс - #*0.  -)$)".  +*-/  -)$)".ҝҗ'*..Ҙ+ -.#- җ )/.Ҙ спѵч җрфѵсҘ The financial results for FY18 were retrospectively restated upon the initial adoption of AASB 15 Revenue from Contracts with Customers. Refer Appendix Metcash’s operations are designed to allow significant volumes to be distributed through its warehouse infrastructure/- '/$1 '4 A for a further description of the restatement. !$3  *./ . ѵ #  $'$/4 /* ' 1 -"  1*'0( . /#-*0"# /#  2- #*0.  $.  & 4 -$1 - *! +-*!$/$'$/4 !*- */#  /.# )  /#   $) + ) )/) /2*-&ѵ җҘ ) -'4$)"+-*!$/!/ -/3җҘ$. !$) .- +*-/ +-*!$/!/ -/3//-$0/' /* ,0$/4#*' -.*!/# +- )/Ѷ 3'0 $)" In addition to warehouse revenue, earnings are impacted by product category mix and the proportion of the Group’.+-* 0/.*0"#/ .$")$!$)/$/ (.$ )/$!$ $))*/ тҗ1$$Ҙ*!/# !$))$'- +*-/ѵ 4 /#  ) /2*-&ѵ - #*0.  .' . )  - '/  (-"$). -  -$1 ) 4 *(+ /$/$1  +-$$)"Ѷ +-*(*/$*)' /$1$/$ . )  /#  ' 1 ' *! җҘ ) -'4$)" -)$)".+ -.#- җҘ$.'0'/ 4 $1$ $)"4/# 2 $"#/ 1 -" .#- .*0/./) $)" 0-$)"/# + -$* ѵ .0++'$ -.0++*-//#-*0"#1*'0( /-$) */# -- / .ѵ  "($ '0) $''$*)Ҙѵрсѵууڦ$''$*)җрчѷрсѵххڦ*/ڿрѵч . -' .Ѷ$)-" Ҋ/#-*0"#.# . '0#)*2 3-*0+- 1 )0 Ѷ2#$ )" Ѷ  +*-//-0 +-*(*/$*)Ѷ+-* )$)"$)"/#-*0"#+-$ '0Ѷ$).($"-) (. '. -$1 */ '+($.)-"*4+- &!*- )0(.##./  -*$,0  ) ' ."-*2/#$)/# **$''$*)Ҙ2$/#.руѵтхڦ$''$*)җрчѷруѵфхڦ*/ڿрѵу . -' .Ѷ-*0+- 1 )0 $)-" Ҋ/#-*0"#.# ѵ/( )("$'- )0.(* (. - (/.'(*$/- +*'$/ - +$''-.+-/'4*!!. /4.('' '$) $) - 2- .' .ѵ  *./*! *$)"0.$) ..  -*)"($ .-''$+-*$,0  ) -2 -  -)$)"."-*2/#$)/# ттуѵх($''$*)ҘѶ2$/#ڦттпѵп($''$*)җрчѷڦ*/ڿрѵу ($'  0+*- The Group’s profitability depends on the efficiency and effectiveness of its operating model. This is achieved by optimising the Group’s /#)*!!. /4 '$) $)/# ** +$''- -)$)".) - 0/$*)$)/# ) /*-+*-/ - .0'/ѵ *./*! *$)"0.$) ..җҘҊ2#$#*(+-$. ./# 1-$*0.*./.*!*+ -/$)"/#  $./-$0/$*) )/- .) /#  ($)$./-/$1 .0++*-/  -)$)".ѵ . $) --$1 -*!/# $) $)./# (,0$.$/$*)2Ҙ  - җ2 -  -о*( $(  '.4) -"$ .!-*(/#$/$*) - Ѷ2 - ) ./ !*-/# + )$)+'.##(2#$1$)".!-*(/# Working Smarter +-*"-рсф($''$*)*!.ڦۡ #$ 1.ѵ# -*0+#.(*$/(0! /#- !$))$'4 -.ѵ ) $,0*-Ѷ -)$)".2 - 0) -+$)) 4*)/$)0 "-*2/#$)/#  ) /2*-&ѵ#$' $)** Ѷ/#  '$) $) 2.'-" '4 0 /* /#  '$) $)2#*' .' .' .җ 3'0 $)"/**ҘѶ) $)- ( )/'*+ -/$)" 3+ ) $/0- - '/ /*Mfuture$)$/$/$1 .2#$#$. # -*0+Ҋ2$ Mfuture +-*"-(*(( ) $)сп) $)'0 .$)$/$/$1 .$( /"-*2/#) (3$($.$)"/#  !! /$1 ) ..*! 3+ / /* '$1 -- 1 )0  ) !$/.$)/# !0/0- ѵ the Group’s CODB.# +-*"-($(+' ( )//$*)/ (2. ./'$.# ) */# -. /0+/$1$/$ .2 - *(+' /  0-$)"ршѵ   $/$*)'*./.1$)"./#-*0"#/# *-&$)"(-/ -+-*"-(# '+ /**!!. /$)!'/$*)-*../# -*0+ѵ 0) . (+'*4 ) - /0-)*)+$/'  !*'.- /# - 1 '0$)  /-*-+*- '4$)хѵц($''$*)Ҙѵ# +-$*-!$)ڦ!*($" фѵр($''$*)җрчѷڦ.'*..2  /' *-+*-+$/ . '*)" - / -(The Group’s funds employed is primarily influenced by the seasonal working capital cycleѵ #  -*0+ # $)рчѵ .. //'/2$(/#' )$'$).0-0/$*) )/- #$).//# $./-$"рп($''$*)+-*1$.$*)ڦۡ  - .*!/2 ) #)*'*"$ . /$*) /0/*(  - #*0.$)" 2 '0Ѷ $). $/$'$+ ($# 4'0++. ./$ (*  . 4'/(($)* -+ ./( )/. 1($ 1 '*+( )/ѵ ))0( -*!$)./) .Ѷ/# -*0+$)1 ./.'*)".$ /# $) + ) )/- /$') /2*-&Ѷ($)'4$)/# !*-(*! ,0$/4   #/*/ 0 *./. ). $)!$) -)$) )  /$)"'*2 -- +*-/ срхѵш($''$*)Ҙ- !'ڦсрпѵт($''$*)җрчѷڦ*/ڿтѵп '$)  ).ѵҊ/ -('*/-*#.-*(*$/+$$/-+ Group’s $150($''$*).#- 04&$)р ршѵ # *- ’s intention is to *)/$)0 /*$)1 ./$)/# 0.$) ..!*-!0/0- "-*2/#) */# -2$. - /0-).0-+'0.+$/'/*.#- #*' -.ѵ  ѵ&04 -#. #/#"0*-#/ - 1$' (*$/ -."($(- ڿ0 /*ۡу  )/.ссѵх*/ڿрѵч . -($ -#.- +."($(- "(4$'- (  (+/*!) 2*0)/$)"./) - .*)& 4!$))$'( .0- .  !* "-# '0-$) '4$)ручѵс($''$*)Ҙѵ# +-$*-!$)ڦ!*..*'/0/*-4ршсѵч($''$*)җрчѷ./ڦ.32/- /!/$!*-4+-*/0// .. /.ѵ*/# -) / )2$'' $-( )/*!"**/*/# $(+ /3Ҙ- 'туфѵф($''$*)җ+*./Ҋ/ڦ  ( *+/$*) *!  ш Financial Instruments  ' 0+*) /#  $)$/$ //$1 '4 - ./ .0- . 2 -  - /-*.+ ' ($)Metcash’s & 4 !$) рфRevenue from Contracts with Customersѵ  -*(спѶ/# . !$))$'( .0- .2$'''.* $)!'0 ) 4/# ++'$/$*)*!рхLeasesѵ++ ) $3/*/# !$))$'- +*-/  +-*1$ . .-$+/$*)*!/# & 4#)" .-$.$)"!-*(/# ) 2*0)/$)"./) - .) /#  3+ / $(+/*!/# $)$/$'++'$/$*) *!рхLeasesѵ 

         

34 Metcash /.#-*0+Ҟ Annual $))$'Report 2019 +*-/рш с   /.#-*0+Ҟ$))$' +*-/рш т 35 

    Directors’ report continued Directors’ report continued Directors’For the year ended 30 report April 2019 (continued) ForDirectors’ the year ended 30 report April 2019 (continued) *-/# 4 - ) тп+-$'спрш *-/# 4 - ) тп+-$'спрш    "( )/- .0'/. Hardware

 /+)/$1 '4$' .2 - ) "$''$*)Ҙѵсѵрсڦ$''$*)җрчѷсѵрпڦ*/ڿпѵш '$) ' .Ҙ-" Ҋ/#-*0"#.#$)" '0җ$). '. -2 - 3/ (/. - /($ -*! ."($(- /( )"   - 1 )0  җ Ҙ 4/# .'*2 *2)$)*)./-0/$*)/$1$/4Ѷ/# '*.0- *!0)+-*!$/' *(+)4Ҋ*2) ./*- .Ѷ) /# '*..*!'-"   2#*' .'  ѵڿпѵт . -' .$)0./*( -Ѷ.$)"/# '*..*!/#$. '0ршѵ3 $)р )0./*( -$)0 ).' рш рч рш рч  !*.("$. .#*2  $/'-& /Ѷ4/# .*!/ -( /.$(+/*-.2 Ҙ. Ҋ$/Ҋ4*0-. '!җ*  ( -/ #/#/*($4/$1$/!*' 1 ' # )ڦ )ڦ )ڦ )ڦ       $(+-*1 ( )/$)/# . *) #'!ѵ **  цѶчтхѵу цѶчтрѵч рчсѵц рччѵт  -"++#$- ./*- 0+ $)"/# '0/$1 .$)4$)$/$ Ѷ.0++*-/ڿсѵт . -(0+$*-"- ((  #/*/. '. '. '*2# ! '/* $,0*- тѶхфчѵч тѶухцѵр црѵс цпѵт +-*"-(ѵ - 2-  рѶрхфѵр рѶрутѵт чрѵс хшѵт .$.ѵ ! Ҙ*)ڿҗрчѷцѵуڿтѵп . -)) -"-*0+$)  ' ./#-*0"#/#$'.Ҋ Ҋ җфѵрҘ хѵц  /  /-*+-*  #/($./$! ( '.4) -"4$/$*) /$)" хшѵт($''$*)ҘѶ- !'ڦчрѵс($''$*)җрчѷڦ*/ڿррѵш($''$*)*-рцѵсڦ4 . -$)  -2 - рсѶххпѵт рсѶуусѵс ттпѵп ттуѵх 0+*-#./  The financial results for FY18 were retrospectively restated upon the initial adoption of AASB 15 Revenue from Contracts with Customers. Refer Appendix 4 - !-*( /#    ,0$.$/$*) )  /#   ) !$/ !-*( /#  '*.0-  *- .'  *! 0)+-*!$/'  *(+)4Ҋ*2)  ./*- .ѵ )  $/$*) /* A for a further description of the restatement. .4) -"$ .Ѷ*-&$)"(-/ -*./.1$)".# '+ *!!. /$)!'/$*)ѵ Food -"$).ѵ' (/*)2#*' .1 -. $(+ ) Ҙ#ڿҗрчѷۡхтڿхфۡ*/$3). '. #/($. '. -/!*(*$/-*+*-+ #/($ . -($( $''$*)Ҙѵчѵццڦ$''$*)җрчѷчѵцшڦ*/ڿпѵт . -' .Ҙ$)-" Ҋ/#-*0"#.#$)" '0җ$). '. **'/* 0.$) ..ѵ$'-)$)".$)/# - /  . -/$)"$) Ҙ- !'ڿҗрчѷтѵтڿтѵш*/ . -($($"-)  # )0+ -(-& /.Ѷ/# - 2..*( $(+-*1 ( )/$)/# ./$''#$"#'4*(+ /$/$1 (-& /*) $/$*).Ѷ+-/$0'-'4$)/# . *) #'!*!/#  ѵ /*)-$(+ -Ҋ*)Ҋ4 пѵр($''$*)+*.$/$1 4ڦ #/$*)*!рф/. # $(+' ( )/ - !' )Ҙڿҗрчѷсѵуڿ.рѵр-2 /$*)!*-/# !0''4Ҙѵ !'ڿршѷрѵт җрڿ$)"/*пѵш0 рш- /$*)!*-с !'  )/$) . 1$ѵ#$.2- 4 - 0/$*)$)/# ' 1 '*!+-*(*/$*)'/$1$/4$)/# (-& /ѵ Corporate  !*'.- /# - 1 '0$)  /-*-+*- '4$)хѵц($''$*)Ҙѵ# +-$*-!$)ڦ!*($" фѵр($''$*)җрчѷڦ.'*..2  /"-*2/#*) *-+*- *)/$)0$''$*)ҘѶ2$/#цѵсчڦ$''$*)җрчѷцѵсуڦ*/ڿ*2)пѵф  ' .Ҙ2 --" Ҋ/#-*0"#.#$)" '0җ$). '../ &-)- 0+ $)рчѵ .. //'/2$(/#' )$'$).0-0/$*) )/- #$).//# $./-$"рп($''$*)+-*1$.$*)ڦۡ ѵ$'-/.0(- /. ($. '.($ ($' 4/ .!!*"($ ($" -* .(- /.  #/  /$1ршѷ) " җрڿ/$1 рѵт/*) " '!$(+-*1# *) *Ҙ$)/# .$)"/* '0җ 3. '. '. '*2#($ ($'  #/!*-4*/ %-/ # 3/ (./.* (($ ڿ.рѵф-2 '$) !*-/# !0''4  '$) ѵ# / *!*!$(+-*1 ( )/$)/# - -+ -$* '!Ҋ40/$1 # *)./$)"/# !*0-/# ҘѶ- !'ڿрѵш ѵ'$$/$*).$) ./ -)0./- *)'' )"$)"#/*!-" '4- +- . )/./# $(+' )Ҙڿҗрчѷтѵх  /!$)) *./.$)- .  0-$)"/# 4 -- !' /$)"#$"# - /0/$'$./$*).- .0'/*!/# *!!Ҋ(-& /.#- 04&$)0"0./ '/$+/( +-0 )" ( )/)'(+$//$*)Ѷ/$"#/2*-&$)".#" ) -/$)"4./-*)"*+ -''4*!!. /-/$.+/2спрчѵ#$.$(+ ڿ*2) пѵф ' .Ҙ . ! Ѷ 2$/# '$& Ҋ!*-Ҋ'$&  җ&-*2/ ( '$/ -   #/ !* -4*/ %-/ . '.  #/ ($ /( ) 1*-+)$ ( .2  - # $/0- ѵ .$. 3+ )чп . -*- $)(2*-&. *0-/ )*- .Ѷ/$*)./$.!.0++'$ -. )$' -. $)- / -!0-/# -$).Ҙѵ# - 2ڿҗрчѷпѵш ѵڿцсۡ*/./($*+  /3-/$1 / Ҙѵ# #$"# - !!ڿҗрчѷсчѵцڿ/ *!сшѵу3-/$1 / ) !! -'4$)"+-*!$/- +- . )/. ччѵф($''$*)*)0)ڦ!* .( 3+ 3 ѵ *2 .+- 1$*0.'4!*- .#Ѷ /-3/ /-*+-*ڿ./# тп -/$*)/*2'$.)*-(/.  $)рш- !' . -0./*( -.Ѷ $) %*-' . "-*2/# !-*( (/$)" . $''$*)Ҙ - !' рѵушڦ $''$*) җрчѷ рѵфхڦ */ ڿуѵу  . -($ . '.  ( $( 1(* /**.' .) /#  $/$*)*!) 20./*( -.ѵ $")$!$)/$/ (. *Ҙ$)"/* '0' .җ 3' .'$) $)2#*' .  рччѵт($''$*)Ҙѵ#ڦрчсѵц($''$*)җрчѷڦ*/Ҙڿфѵх($''$*)җтѵпڦ . -   ** (.ѵ/# Working Smarter +-*"- ) /*/# /*./.- ').$/$*)/- '0)/$/ (.$)0/$*)!-*( # рш.$")$!$*)/-$'- ( )/)$)4-/'4*!!. /рп($''$*)2 - +ڦۡ!*. /$1Mfuture "-*2/#$)$/$($/( )/. 1($'/( ) -($( (  $(+-*1 )-Ҙ '4$)'!*!/# !$)$)/# !$-./# 0--#*''*!2#$ц($''$*)җڦۡ!*.(*$/"$'* . '.0*- (*!*(*$/0'*. - #/  ** #/($./ ..!* '0--4$)"1 $).//#" *- тфсѵр($''$*)-ڦ!* .( $-( )/ 3+)$(+ '0)/$/ (.$)рч.$")$!$ # -)$)".!-*(%*$)/1 )/0- .ѵ*-&$)"(-/ -.1$)".*)/$)0 /*# '+*!!. /$)!'/$*)ѵ . "( )/ѵ# $(+$-( )/ 3+ ). +- *($))/'4- '/ /*"** 2$'') */# -$)/)"$' .. /.Ѷ0/'.*$)'0  -/$)- .$ 0' .  3+*.0- .ѵ ' ).. /. ')"$ѵ /ڿсѵр/ ($/($).2 **-*!($"-)  # /$*)ѵ'- +*-/!*-!0-/# -$)!*-($)ѵ  ! -)*/ т*!/# !$) /*)-$(+ -Ҋ*)Ҋ4 рѵх($''$*)+*.$/$1 4ڦ #рф!*(*$//( ) '+)$ # Liquor .#!'*2. ($#/"-*2 *)/$)0/$)" $''$*)Ҙ- !'тѵуцڦ$''$*)җрчѷтѵхцڦ*/ڿфѵх . -' .Ҙ$)-" Ҋ/#-*0"#.#$)" '0җ$). '.-*0,$ '/* рш рч .' . /* /#   )) -  "-*0+ )    2#*' .'  0./*( -.ѵ  #$"# +-*+*-/$*) *! /#$. "-*2/# 2. 1'0  -$1 ) - '/  /*  )ڦ )ڦ continuation of the ‘premiumisation’ trend to higher quality but less consumption.    .#!'*2. сууѵш сцхѵт/$)"0./*( -. + -/*)/- -*!)0(*)1 -.$*)*!/$)" -/'4- !'Ѷ+ڿфѵт . -($&-*2/ ( - ((  #/#"0*-#/. '. '. '*# /*/#  )) -$)рчѶ$)'0 $)"#$-./4( '$)*0/#0./-'$) /# *-/# -) --$/*-4ѵ )1 ./$)".#!'*2. җуцѵшҘ җутѵчҘ #- 04& җрфпѵтҘ Ҋ */./( )/. 4/# *)Ҋ"*$)"$)1 Ҙ.0++*-/ڿҗрчѷрѵфڿрѵш . -($.$. ! (*&-*2/ ( - ((  #/*/. '. .0*# - $1$ ) .+$ ) */# -!$))$)"/$1$/$ . җртсѵуҘ җрпчѵшҘ $(+-*1 /# ,0'$/4*!/# ./*- ) /2*-&) .#*++ - 3+ -$ ) ѵ#$.- +- . )/./# .$3/#*). 0/$1 4 -*! ! .' ."-*2/#Ѷ .#*2$)"/# ./- )"/#*!*0- - /$' -) /2*-&ѵ җ )- . Ҙҝ- 0/$*)$)) / / җчфѵцҘ рстѵх The statement of cash flows for FY18 was retrospectively restated upon the initial adoption of AASB 15 Revenue from Contracts with Customers. Refer .Appendix A for a further description of the restatement ڿ.$.+*$)/./*рѵшрп '$) -"$)(  цпѵт($''$*)Ҙѵ#ڦцрѵс($''$*)җрчѷڦ*/ڿпѵш($''$*)*-рѵтڦ . -($ -*0,$ (*$/0 2$/#/# $)/-* /$..**./.'$/$*) /*!/# $(+ )-$1 )  '0-" '41 $)"'' ."-*2/#/$)". Ҙ- !'ڿҗрчѷсѵп # -*0+*)/$)0 /* '$1 -./-*)"*+ -/$)".#!'*2. 0-$)"/# 0-- )/4 -2$/#*)/$)0 !*0.*) !!$$ )/2*-&$)"+$/' and administration of container deposit schemes, investment in the ‘onҊpremise’ team and the co-+*-/ ./*- /-$'ѵ  (Ѷ$).0- 0)/$)"2**  *). //' ( )/*!/# $1 сп($''$*)-ڦۡ '0.#!'*2.$)/$)"ѵ# рч*+ -/( ) "() $(ѵ' ѵ /*)-$(+ -Ҋ*)Ҋ4 рѵш($''$*)4ڦ /$1) " рф#!*(*$//( ) '+)$ # $/0- ѵ ' 3+ )+$//* /-$'4- '#+-$(уцѵш($''$*)2#$ڦ!*.2*'!/0*"($/. 1($/ ( 0+#*- # - ѵ )/.+ -.#'*!ртѵф/*/-– '4$)0-- )/!$) 0-$)"/# . ) $1$ рпсѵу($''$*)Ҙ$)ڦрсцѵу($''$*)җрчѷڦ $0++*- # 

         

36 Metcash /.#-*0+Ҟ Annual $))$'Report 2019 +*-/рш у   /.#-*0+Ҟ$))$' +*-/рш ф 37 

    Directors’ report continued Directors’ report continued Directors’For the year ended 30 report April 2019 (continued) ForDirectors’ the year ended 30 report April 2019 (continued) *-/# 4 - ) тп+-$'спрш *-/# 4 - ) тп+-$'спрш   $))$'+*.$/$*) ) - 2- Ѷ.' ./#-*0"#/# !$-./. 1 )2 &.*!сп- '*2 -/#)/# *-- .+*) $)"+-$*-4 -+ -$* Ѷ- !' /$)"/# '*..*!

 (%*-0./*( -$)0 ).') $)р рш) .'*2 *2)$)/- .' .ѵ /$./** -'4/*.42# /# -/# #)" .$)/#  *)*($ рш рч )1$-*)( )/!*-/# - .$ )/$'#*0.$)". /*-2$''! $)/**)./-0/$*))  /$1$/4$)спѶ#*2 1 -/# - ++ -./* )   #/ /"$/$)+' #*/ / -  3+1$)".*./.'$/$*) ѵ(*$/ '  #//.*+&-*2/ ( #/($ ( $!(*!*' 1 ' #/($/( ) 1*-+)$ )ڦ )ڦ     1 -. $(+/*!)4!0-/# -.'*2 *2)$)*)./-0/$*)/$1$/4$)спѵ - -  $1' . рѶуцсѵф рѶуфчѵх  )1 )/*-$ . ццшѵт цфуѵр  -  )*0-" 4/# *(($/( )/*!*0-$) + ) )/- /$' -.-*..''+$''-./**)/$)0 /*$)1 ./$)/# $-./*- .ѵ - +4' .) +-*1$.$*). җсѶсрпѵфҘ җсѶрцпѵсҘ   /2*-&$)"+$/' урѵт усѵф )/)"$' .. /. цштѵф цшсѵт цѵ / -$'0.$) ..-$.&. -*+ -/4Ѷ+')/)  ,0$+( )/ ссфѵч срфѵф # !*''*2$)". /$*)*0/'$) ./# (/ -$'0.$) ..-$.&./#/(4$(+/*)/# -*0+#$ 1$)"$/../-/ "$*% /$1 .) 0.$) .. ,0$/4Ҋ*0)/ $)1 ./( )/. чцѵц ччѵт *+ -/$*).Ѷ$)'0 $)"/# ($/$"/$)"!/*-.+0/$)+' /* - ../#*. -$.&.ѵ# (/ -$'-$.&.- )*/. /*0/$))4+-/$0'- 0./*( -'*).) .. /.# ' !*-.'  учѵс фпѵш *- -)  3'0 " ) -'-$.&./#/*0' #1 (/ -$' !! /*)(*./0.$) .. .$)0./-'$0) -)*-('*+ -/$)"*) $/$*).ѵ */'!0) . (+'*4  рѶршхѵф рѶрчшѵф  /.#ҝҗ /Ҙ җусѵшҘ усѵч /-/ "$-$.&. 3Ѷ+0/*+/$*).)  -$1/$1 . шхѵф рпрѵш *).0( - #1$*0-) +- ! - ) .*)/$)0 /*#)" ) - $)!'0 ) 4!/*-..0#. *)*($*) $/$*).Ѷ# '/#4'$1$)"  /.. /.ҝ ,0$/4 рѶсфпѵр рѶттуѵс /- ) .) $)- .$)"#*$ .$)*/#*)'$) ) $)Ҋ./*- - /$'*+/$*).ѵ The financial position as at FY18 was retrospectively restated upon the initial adoption of AASB 15 Revenue from Contracts with Customers while AASB 9  Financial Instruments was adopted on 1 May 2018. Refer Appendix A for a further description of the restatement.  /ash’s business operations and strategic priorities are subject to ongoing review and development. Management regularly review. #ѵ++-*$!$ .$/. -4Ѷ(* .. Ѷ2# - ) ))" .#-& /$)./("). +' ). ) $1$ /#-*0"# $)"- /0-)'+$/сцф($''$*)*!ڦ- .+$/ *1 Ѷ"($- "2*'#/2$"(*-/..($) -/ #. ('0+*- # /# *!!Ҋ(-& /.#- 04&ѵ -& /-$.&. !*. .( /$*) 3+(*-/$. )/$*)$ +- -" '4*!!. //$)"-Ѷ' 0-$)"/# 4  $/0- ' 3+ )+$/фчѵф($''$*)$)ڦ /. 1(0+$*- #  ( '$/ -  )*-! #/* *(+ /$/*-.Ѷ  3$./$)" ) *(+ /$/$*) !-*( ) 2  *)/$)0 *)/$)0  /* 1*'1  2$/# $/$*). *) -& / фхѵц($''$*)ѵڦ 2#*' .' + -.+ /$1 Ѷ*)"*$)"0) -/$)/4$)/# -* - *)*(4Ѷ*)"*$)"+-$  !'/$*)Ѷ) +*/ )/$' 1 -. $)/ - ./-/ )  $'$/4ѵ+-*!$/ )' .'$) $). /*  4'#(''*!2#$)" (*1 ( )/.Ѷ#/ !*- $") 3 ) //рч/*усѵч($''$*)ڦ!*(*$/$.*+#./ ()*-!-Ѷ 0-- )/4 0-$)"/# чфѵц($''$*)ڦ4 . -($/ / (0+*-  ''4-/$$)/# - +*-/Ѷ+ -$ . /$1 ." ( )/$)$/$)'(+$/ - .0'/*!/#./2 . $)) / -усѵш($''$*)ѵ# $)ڦ!*(*$/$.*+ /($!$("$."($- '$1 *) 0..!*#2(Ѷ2#$-/ -+-*"--*-&$)"(  FY19 represents the end of Metcash’s successful threeҊ4 ) .# русѵх ($''$*) *!ڦ  ( . $/$'$! /  .ххпѵф ($''$*) $) 0)0ڦ  # #./ ѵ(*$/- ( " #. "($/- +* "(*-/. 4 / .!!* ,0$1' )/.1$'' //# - +*-/$)" / !*-$(( $/ 0. ѵ *./.1$)".ѵ# *(+)4#.)*2(*1 $)/*/# ) 3/!$1 Ҋ4 -+#. *!$/../-/ "42#$#Ѷ2#$' - ($)$)"!*0. *)*./Ѷ$(. /* '$1 -+/#24/*'*)"Ҋ/ -(.0./$)' "-*2/#ѵ#$.+-*"-(#. )'' MfutureѶ) $/- !' /.') ++-*#/* *(($/( )/.Ѷ*)/$)" )$ .) */# -!$))$' 3+*.0- . - 1 )0 "-*2/#) *./*0/ѵ# ./-/ "4$)'0 .Ѹ ' -/$)".0 ..!0'0-- )/$)$/$/$1 .Ѷ!*''*2$)"/# .#*++ -$)/*) 2"-*2/# $)$/$/$1 . -*.. *0- +$''-.Ѷ $(+-*1$)" *0- $)!-./-0/0-  /* )'  .$(+' - +-* .. . )  ).0-$)" 2  #1   .0./$)'  *./ Metcash’s operating lease commitments, which predominantly relate to warehouses and retail stores, $)- .  !-*( ./-0/0- $)/# !0/0- ѵ//# # -/*!*0-./-/ "4$. '$1 -$)"*(+ /$/$1 ) .0 ..!0'$) + ) )/- /$' -) /2*-&.-*..*0- - ()/. 0'  !-*( / )*1 - фтфѵх ($''$*) $. -ڦ *(($/( )/Ѷ '/ тп +-$' спршѵ ! /#  /*/ рѶушшѵт ($''$*)ڦ */ (*$''$) рѶтцтѵрڦ +$''-.ѵ /$*).*!рхLeases/# $(+'$ )*(($/( )/. . $'.*!' / /тп+-$'спрчѵ0-/# -фцчѵш($''$*)ڦ)*-!(*2 Ѷ. . '0. - +- . )/ $))*/ рх) ++ ) $3*!/# !$))$'.// ( )/.Ѷ- .+ /$1 '4ѵ + -/$*)') *(+'$) -$.&. 0/*+/$*).Ѷ$)'0 $)"$)- '/$*)/*$/#$ ./*- ./4 / Ѷ-  /$' '*)"2$/#*/# -*)/$)" )/'$$'$/$ . $))*/ ру*!/#  !$))$'.// ( )/.ѵ As Australia’s leading wholesaler, Metcash is reliant upon the success of our suppliers and retailers. Metcash continues to i)1 ./$) +-*"-(.to improve the health of the independent retail network and improving Metcash’s infrastructure to make it simpler to do  /.##.- '/$1 '4'*2 3+*.0- /*$)/ - ./-/ -$.&) ($)$('!*- $") 3#)"  3+*.0- .ѵ-$' $)/ - ./-/  3+*.0- . 0.$) ..ѵ# . +-*"-(.)*2$(/*./- )"/# ) /.#./# 0.$) ..+-/) -*!#*$ !*-*/#*0-.0++'$ -.) - /$' -.ѵ. .##./ ) !$/.ѵ / '$1 -/#  3+ $'/*(.!/$*)+-*"-).!*-(//# . /--$.&/#)" Ѷ/# - $.#)/)4.$")$!$$'. 2$/# / ѵ0-/# - 3$!.2/ ..*-"!*ڿѶфп - ) 4ѵ/4.0-4+*'$ 2$/#/-) *-Ѷ$) "(-($#/2$ " # -/  -*(* - . /*0/$))*/ ру*!/# !$))$'.// ( )/.ѵ ./- )"/# ) $/."*1 -)) !-( 2*-&./*()" /# . #)" +-*"-(./#-*0"#/#  ./'$.#( )/*! $/ +-*% // (.  /* ).0- +-*% /.-  '$1 - ) -$.&.-  - .. $)/$( '4()) -ѵ  хѵ 0/'**& Metcash’s operations require compliance with various regulatory requirements including 2*-& # '/# о .! /4Ѷ !**  .! /4Ѷ )0+ -(-& /.Ѷ/# - #. )*)/$)0 $(+-*1 ( )/$)/# .' ./-% /*-4*!2#*' .' .' .җ 3'0 $)"/**Ҙ/#-*0"#/#  )1$-*)( )/' - "0'/$*).Ѷ 2*-&+'  $) 0./-$' - '/$*).Ѷ +0'$ '$$'$/4Ѷ +-$14 о . 0-$/4Ѷ !$))$' )  ' "'ѵ )4 - "0'/*-4 !$-./. 1 )2 &.*!спѵ - #*0' #1 (/ -$') "/$1 $(+/*)/# 2 '' $)"Ѷ- +0//$*)*-!$))$'- .0'/.*! /.#*-$/../& #*' -.ѵ#  Group’s internal processes are regularly assessed and / ./  . +-/ *! -*0./ -$.& )  ..0-)  +-*"-(.  - ..$)" - . .))*0) Ѷ /.##. )/ - $)/*!$1 Ҋ4 -.0++'4"- ( )/2$/#-& ..0+ -(-& /.$)0 ).') ѵ /.#Ѷ#*2 1 -Ѷ $)'0 $)"Ѹ.! /4Ѷ. 0-$/4Ѷ.0./$)$'$/4Ѷ#$)*!- .+*).$$'$/4Ѷ,0'$/4) !** .! /4ѵMetcash maintains a strong ‘safetyҊfirst’ 3+ /. /*  .  .0++'4$)" -& . .0+ -(-& /. $) *0/# 0./-'$ *)  /# $- ) 2   *( . *+ -/$*)' җ 3+ /  /*   тп culture and has established standards and ‘Chain of Responsibility’ policies to identify and()" -$.&ѵ  +/ ( -спршҘѵ  Metcash is committed to ‘Championing Successful Independents’ ) & 4 ' ( )/*!/#$.$.0) -+$)) 4 ).0-$)"*0-*+ -/$*). 0+ -(-& /.2$''*)/$)0 /*$)1 ./$)"-*2/#$)$/$/$1 ./#-*0"#/# Mfuture+-*"-()  3+ /.- '/ *+ -/$)" 3+ ) $/0- $) -  *) 0/  $)  .*$''4 - .+*).$'  ()) -ѵ  /.# $(. /* ()"  /#  *./. *! *(+'$)  /* ).0-  *0- *./. *! *$)" сп/* $)'$) 2$/#/#/$)0-- $)ршѵ# *)/-$0/$*)/*0+ -(-& /. !-*(/# - .*'0/$*)*!*) -*0.' . *'$"/$*). 0.$) ..- )*/.$")$!$)/'4$(+/ ѵ $)сп$. 3+ / /* .$")$!$)/'4'*2 -/#)/#/- +*-/ $)ршѵ*./.1$)"./#-*0"#/# Mfuture+-*"-($)сп-  3+ /   Inefficiency or failure within our supply chain or in key support systems (including technology) could impact the Group’s abi'$/4/* /*# '+*!!. /$)!'/$*)$)/# ** +$''-ѵ '$1 -*)*0-*% /$1 .ѵ /.##.*(+- # ).$1 0.$) ..*)/$)0$/4+').$)+' /* - ...$")$!$)/0.$) ..$)/ --0+/$*). ) !$'0- .2$/#$)*+ -/$*)'.4./ (.ѵ0-./-/ "$+'))$)") *)"*$)"(*)$/*-$)"*!*+ -/$*). ).0- *0-.0++'4#$))  In Liquor, continuation of the ‘premiumisation’ consumption trend is expected to be the key driver of market growth in FY20. #  .0++*-/.4./ (.- ' /*.' ++-*+-$/ '4/*- .+*) /**0-0.$) ..) .ѵ 0.$) ..$.*)/$)0$)"/*!*0.*)& 4Mfuture $)$/$/$1 .$)'0 $)"0$' $)") $(+-*1$)"/# ,0'$/4*!$/. ) /2*-&Ѷ"-*2$)"$/.  share of the ‘onҊpremise’ market, /# /-$'*!*-+*-/ ./*- .Ѷ 3+) $)"+-$1/ ' ') /# -*''*0/*!*-/ -. $,0*-ѵ 

         

38 Metcash /.#-*0+Ҟ Annual $))$'Report 2019 +*-/рш х   /.#-*0+Ҟ$))$' +*-/рш ц 39 

    Directors’ report continued Directors’ repor report/җ*)/$)0 continued Ҙ Directors’For the year ended 30 report April 2019 (continued) For the year ended 30 April 2019 *-/# 4 - ) тп+-$'спрш *-/# 4 - ) тп+-$'спрш  $))$'-$.&.   җҗ *).ҘѶѶ- 0/ $+ )!*-(/$*) *- $)!*-(/$*) )" ( )/Ѷ Ҙ Metcash’s ability to reduce its cost of doing business is critical to support independent retailers in remaining competitive $)/#  ) + ) )/*)Ҋ 3 0/$1 $- /*- *)/$)0 #'' )"$)" )1$-*)( )/ѵ# *(+ /$/$1 /- $)"*) $/$*).) -* - *)*($*) $/$*).$)- . /# - $/-$.& # $- /*-.$)*!!$  0-$)"/# !$))$'4 -) 0+/*/#  / *!/#$.- +*-/- .!*''*2.ѵ  ..*$/ 2$/#*0-/$1$/$ .. Metcash’s strategy is to .0++*-/.0 ..!0'$) + ) )/./#-*0"#++-*+-$/ - $/()" ( )/ $*)2.++*$)/ /*/# *- *)рх*1 ( -спрпѵ# $. +-* .. .ѵ  /# #$-*!/#  *+' ) 0'/0- *(($// ) ( ( -*!  җ *).Ѷ*)*($.җ)/ҘҘ ) + ) )/*)Ҋ 3 0/$1 #$- /# *($)/$*)*(($// ѵ 0) $)" )  '$,0$ $/4 -$.& - ($). (/ -$' /* /#  -*0+ 0  /* /#  )  /*  ,0/ '4 !0)  0.$) .. *+ -/$*).Ѷ *0- "-*2/#  $)$/$/$1 .) .*-+*/ )/$''*.. 1 )/./#/(4-$. ѵ )$'$/4/* ,0/ '4!0) *0-0.$) ..*+ -/$*).) "-*2/#+'). $*) has more than 30 years’ executive experience across * -/ җ*Ҙ $. /#  #$- *! /#   /.# $($/  *-  *! (4'  /* $!!$0'/4$) 3 uting the Group’s strategy. Metcash maintains a prudent approach towards capital management, which . 1 -' $1 -.  $) 0./-$ .ѷ 1$/$*)Ѷ / ' *((0)$/$*).Ѷ $- /*-.) $.'.*/# #$-*!/# *($)/$*)*(($// ѵ $)'0 .*+/$($.$)"2*-&$)"+$/'Ѷ/-" / +$/' 3+ ) $/0- Ѷ+$/') .. /- 4'$)") - !0'*).$ -/$*)*!$/. $1$ )  !$))$'. -1$ .Ѷ 0/$*)) /# )*/Ҋ!*-Ҋ+-*!$/. /*-.ѵ * 2. ++*$)/  /* /#  *-  *) сш +-$' спрф )  2. +*'$4ѵ ) $/$*)Ѷ)&$)"!$'$/$ .- ($)/$) 2$/#.0!!$$ )// )*-Ѷ $1 -.$/4) #  -**(/*!0) 0.$) ..*+ -/$*).ѵ#  $*) -$)". .+ $'$./ 3+ -/$.  $) $)!*-(/$*) )  Group’s financial risk management framework is discussed in further detail in note 1у*!/# !$))$'.// ( )/.ѵ ++*$)/ #$-*)сц0"0./спрфѵ *((0)$/$*)./ #)*'*"4/*# --*' "$) /#-*0"# 3/ ).$1  *#. 3/ ).$1  3+ -$ )  $)ѵ #.# ' +*.$/$*). 3 0/$1  3+ -$ )  $) / #)*'*"4 -*' . $)'0 $)" . #$ !  *+' ) 0'/0-  2$/#$) 0./-4'  -.Ѷ#1$)" )*!*/# $*)/#))  )!*-(/$*)!!$ -/)/.) '/ - './-ѵ#$. 3+ -$ )   ./'   )$Ѷ )  #  /# - !*-  -$)". 2$/# #$(  + # $)- .$)"*(+ /$/$1 ') .+ ) /# *)"*$)") !*-(-& /+-/$$+)/./*- ($)"$' $)*- -/* +//**).0( - ''*2.$*)/*-$)" +$).$"#/into the Group’s technology 0) -./) $)"*!*).0( -.) /# $-- ,0$- ( )/..2 ''. +- ! - ) .*)/$)0 ./*+' +- ..0- *)/# *(+ /$/$*)!*-/' )/ѵ# $'$/4/*//-/) - /$)/' )/2$/#/# )  ..-4.&$''. $(+' ( )//$*) )  /-).!*-(/$*) +-*% /.Ѷ . 2 '' . /# $..0 .! 4/#*. .0++'4$)"/# $) 0./-4ѵ and capabilities to operate in a challenging market whilst being able to effect transformation is critical to Metcash’s succe..ѵ /.# / #)*'*"4Ҋ- '/  -$.&.ѵ $*) 2. 2-  /#  $)!*-(/$*) $.*(($// /* $)"!1*0-$/ +' /*2*-&40)'*&$)"/# +*/ )/$'*!$/.+ *+' /#-*0"# (+*2 -( )/)  ).0-$)"/#  .  !*-( - $- /*- *! $& ($/# *' $)". $($/  җспру /* / #)*'*"4 $) 0./-4 Ѿ/$*)'  - 4  'Ѿ $) сппх !*-  Group’s cultural values align with their values. Integrity is the foundation of the ethical values and standards of behaviour. /!*-'' спрхҘѶ 0+ -  /$' -*0+ $($/  җспрт /* спрфҘ )  $)!*3 ѿ $! /$( #$ 1 ( )/) *)/-$0/$*)/*/#  1 '*+( )/)  employees through the Group’s Code of Conduct. *"$./$.Ѷ*'.*#. 3+ -$ ) $)/# '*"$./$.Ѷ ' /-*)$.Ѷ "-*2/#*!/#  )!*-(/$*) #)*'*"4-*! ..$*).Ѷ . -#)   0/*(*/$1 Ѷ' $.0- ) .+*-/.$) 0./-$ .ѵ ) 0./-4ѿѵ  /.#$)1 ./.$)$/.+ *+' /#-*0"#/-$)$)")  1 '*+( )/*++*-/0)$/$ .Ѷ4+-*(*/$)" $1 -.$/4) 2*-&+' !' 3$$'$/4)  * $. 0-- )/'4  )*)Ҋ 3 0/$1  $- /*- *! *0/# -) -*.. $*) $.  )*)Ҋ 3 0/$1  $- /*- *! $-. -1$ . 0./-'$ җ.$)  ($)/$)$)" .0 ..$*) +'))$)"ѵ #  .#*-/ )  '*)"Ҋterm incentive schemes align the Group’s remuneration structure to спртҘѶ ./ -)4 ) 4$-+*-/*җ.$) спрцҘ)  )  -1$ . shareholders’ interests.  $-*0+ $($/ җ.$) спруҘѶ 1$.*-4#$-()*! 2& . *0/#0./-'$/4 / җ.$) спрчҘѶ) !*-( -)*)Ҋ 3 0/$1   - 2$)"*(+)4) $.( ( -*!/# )*/Ҋ!*-Ҋ+-*!$/#-$/4 /#  ./ ./*0) /$*)ѵ $- /*- *! '(/ $($/  җспрп /* спрчҘѶ   җ$Ҋ$#$ $!  ) *!/# + -/$)") $))$' 1$ 2 0./-'$Ҙ $($/  җспрп /* спрхҘѶ 0./-'$)   -*.. '**     -1$ җспрц/*спрчҘ)  җ ) 1Ҙҗсппр/*сппхҘѵ    җѶ 0.$) ..  ($)$./-/$*) )  )" ( )/Ҙ  -*0+#$ !3 0/$1 !!$ -Ѷ3 0/$1 $- /*- җ*(җ *).ҘѶѶ Ҙ  ) + ) )/*)Ҋ 3 0/$1 $- /*- !! -4 җ !!Ҙ #. *1 - уп 4 -. *! - /$' 3+ -$ )  -*..  *( ./$ )  $)/ -)/$*)' 0.$) .. . $) /#  )$/  // .Ѷ )) %*$) /# *- *)сх-#спрч) $.( ( -*!/#  0-*+ Ѷ.$Ѷ )/-'( -$) /# $ ' ./Ѷ"$1$)"#$() 0 $/Ѷ $.& )  *(+'$)  *(($//  )  *($)/$*) $)/ -)/$*)'+ -.+ /$1 *)/# #'' )" .)  4)($.*!/#  *(($// ѵ 0./-'$)- /$'(-& /ѵ #. 3/ ).$1  3+ -$ ) $)/# !**  )) -$)"./*/# *-  +!$))$' 3+ -/$. )  3+ -$ )  ) "-* -4$) 0./-$ .$)+-/$0'-Ѷ#1$)"2*-& !*-'(*./ "$) !-*(!$)) Ҋ. - -*!*1 -тф4 -.Ѷ$)'0 $)" сп4 -.2$/# - /$' - .*Ѷ) -$)"../-*)"/-&- *-  +-/) -.#$+. / Ѷ -/#0- ) -.*) )  -)./ о *0)"ѵ $) 1 '*+$)")  3 0/$)""-*2/#./-/ "$ .$) $!!$0'/- /$' Anne’s 3+ -$ ) $)/# *-+*-/ . /*-$)'0 .+*.$/$*).. (-& /*) $/$*).ѵ $)) $- /*-*!*/ .-*0+Ѷ) .#$ !$))$'!!$ - !! 2. +- 1$*0.'4 #$ ! 3 0/$1  !!$ - *!  .* $+ *!  $($/ ѵ 1$)" # '  . )$*- !$))  +*.$/$*). $) */# җ0-& 4Ҙѵ  '.* . -1  . ) 3 0/$1  $  - .$ )/ *! +-*! ..$*)' . -1$ . !$-(. )  '-"  '$./  )/$/$ .Ѷ ))  #. + -/$*). / - .# о .4  $"#*-#**  -& / )ѵ $) /#  1 '*+  # - !$))$' 3+ -/$.  -*.. )0( -*0. $) 0./-$ . )$/ // .!-*(сппчѵ !*- (*1$)"/*- .#о.4Ѷ !! ) $.0)$,0 '4+' /*-$)"*/#) 1$.*-4) *+ -/$*)' . -1 ./# #$ !3 0/$1 !!$ -*! .* */0.җ#$') Ҙ + -.+ /$1 /*# --*' ѵ !-*(сппуѵ ))  $.  )*)Ҋ 3 0/$1  $- /*- *! -"* )1 ./( )/. $($/   җ.$) спррҘѶ#-/ - '' $($/ җ.$) спрпҘѶ0!-( $($/  җ.$)  спррҘѶ *)& 0./-'$ $($/  җ.$)  спррҘ )  *)& $($/ ѵ# 2.'.*+- 1$*0.'4)*)Ҋ 3 0/$1  $- /*- *! 4 - *' $)". $($/  җсппш /* спрцҘ )  #  /- )/ -/$)( )/-*0+ $($/ җспрс/*спруҘѵ 

           /.#-*0+Ҟ$))$' +*-/рш ш  40 Metcash /.#-*0+Ҟ Annual $))$'Report 2019 +*-/рш ч   41

   Directors’ repor report/җ*)/$)0 continued Ҙ Directors’ repor report/җ*)/$)0 continued Ҙ *-/#For the year4 - ended ) 30 тп+-$'спр April 2019 ш For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш

 җ 0-$.җ *).ҘѶ җ *).ҘѶ Ҙ   җ *).Ѷ Ҙ The following table presents information relating to membership and attendance at meetings of the Company’.*- *!$- /*-. ) + ) )/*)Ҋ 3 0/$1 $- /*- ) + ) )/*)Ҋ 3 0/$1 $- /*- ) *- *(($// .# '  0-$)"/# !$))$'4 -ѵ# $)!*-(/$*)- !' /./#*. ( /$)".# ' ) // )  0-$)"$- /or’s  + -$* *!++*$)/( )/.$- /*- 0-$)"/# 4 -ѵ *)$)) %*$) /# *- *)су 0) спруѵ# $./# #$-*! ' )2.++*$)/ /*/# *- *)ст/* -спрфѵ# $. /#  0 $/Ѷ $.& )  *(+'$)  *(($//  җ.$)  0)  спрчҘ ( ( -*!/#  *+' ) 0'/0- *(($// ) *($)/$*) - $)-4 ) $.'.*( ( -*!/# *($)/$*)*(($// ѵ *(($// ѵ .#- .# '   /$)".  /$)". /- +*-/$)" #-*0"## -- -) # - 3+ -$ ) *))0( -*!*- .Ѷ ' )has more than 20 years’ executive experience across three  ++*$)/   /$-  # '  // )  /  *)$))  -$)". /* /#  *-   -  /# *! 0) -./) $)" *! $1 -. $) 0./-$ .ѷ*).0( -+&" "** .Ѷ( $) ,0$& $1 -.  $) 0./-$ .Ѷ $)'0 $)" $)!-./-0/0- Ѷ )1$-*)( )/ )        . -1$ - ./0-)/.ѵ - ' .// ѵ *- *!$- /*-.      ' ) -$)". -*0)  *(( -$' )  *).0( - !*0.  * -/0--4җ#$-ҘҗҘ сш+-спрф Ҋ ф ф чуѶппф *)$))  )%*4   .0 ..!0' спҊ4 - - - $) /#   Ѷ 3+ -$ ) /*# --*' ѵ# $)$/$''4/-$) $)/#  . -/$!$  !! -4  (. ф спрц Ҋ ф ф Ҋ !*0..$)" *) $)1 ./( )/ )&$)" )  - ' .// ѵ $)  )" ( )/*0)/)/ѵрч4 -.$)-) .) (-& /$)"''*2 $*)'!*0- рх*1спрп Ҋ ф ф чцѶчпу - /0-)$)"/*0./-'$Ѷ.# #.*)/$)0 # -$)1*'1 ( )/2$/# # - /* -$)"  ./-*)" *).0( - ' ). /* /#  *- ѵ #  "$)  - ' .// Ѷ $)" $- /*-*! 30.-*+ -/4-*0+)  30. )) - ))) сх-спрч Ҋ ф у срѶппп 3/ ).$1  ./-/ "$Ѷ *+ -/$*)' )  " ) -' ()" ( )/ #*' .' -*+ -/40) җ.$) спррҘѵ#$. )' .*)$)) /* *)$)) 24 - су 0)спру Ҋ ф ф хпѶппп 3+ -$ )  $) # - -*'  *! #$ ! + -/$)" !!$ - / *)' . bring particular insight and perspective to Metcash’s property 0--4 *- ) ст спрх Ҋ ф ф усѶхфр 0./-'$Ѷ *1 -. $)" 0.$) .. )  *-+*-/  ./-/ "4Ѷ ./*-  +*-/!*'$*) -$.&.ѵ ' ).# ст/спрф Ҋ ф ф тцѶутр *+ -/$*). $)'0 $)" '' *(+)4 )  !-)#$.  ./*- .Ѷ /-$& ''24 ц*1спрс сф 0)спрч р р Ҋ *)$)) $.'.*)*)Ҋ 3 0/$1  $- /*-*!  $($/ җ.$)  (-& /$)"Ѷ ( )0.Ѷ - . -# )  1 '*+( )/ )  $)!*-(/$*) 0'4 спрхҘѶ 5 $) -'. $($/  җ.$)  -# спрцҘ )  / #)*'*"4ѵ       0 ).') - .0-4*-+*-/$*)җ.$)  -0-4спртҘ) $. 0 $/Ѷ$.&о*(+'$) *(($//      ' )$.0-- )/'4)*)Ҋ 3 0/$1  $- /*-*!'&(*- . $($/   $- /*-*!#$ !3 0/$1 *( ))  +0/4#) ''*-*! *)$)) 24 -җ#$-ҘҗҘ су 0)спру Ҋ ч ч  җ.$) /* -спртҘѶ*0/# -)-*.. $-*0+ $($/ җ.$)  /#  )$1 -.$/4 *! 0 ).')  җ*/# .$)  спрцҘѵ #  2. '.* )) - ))) сх-спрч Ҋ ч ч  +-$'спрфҘ)  )"#(.-*0+ $($/ җ.$) 4спрцҘѶ)  +- 1$*0.'4)*)Ҋ 3 0/$1  $- /*-*!- )* $($/ җспрс/* 0--4 *- ) ст спрх Ҋ ч ч  !*-( - )*)Ҋ 3 0/$1  $- /*- *! $!$ -) . -*0+ $($/  спрхҘѵ җспрт/*спрхҘѵ /-$& ''24 ц*1спрс сф 0)спрч у у           җҘ  *+' о0'/0- *(($//       ) + ) )/*)Ҋ 3 0/$1 $- /*- $*)'!*0-җ#$-ҘҗҘ рх*1спрп Ҋ ч ч   /-$&   ''24 - .$")  !-*( #$. -*'  . *)Ҋ3 0/$1  0--4 *- ) тр0"спрх Ҋ ч ч  0--4 #.  )  ( ( - *! /#  *-  .$)  $- /*-*)сф 0) спрчѵ ' ).# ст/спрф Ҋ ч ч  ст -0-4спрхѵ $.'.*( ( -*!/# 0 $/Ѷ$.&)         *(+'$) *(($// Ѷ/#  *+' ) 0'/0- *(($// )   *($)/$*)*(($//       /# *($)/$*)*(($// ѵ   җ.$)/0 $ .җ$ /ҘѶ Ѷ Ѷ Ҙ * -/0--4җ#$-Ҙ сш+-спрф Ҋ р р  0--4 #. 3/ ).$1  3+ -$ )  $) /#  $) + ) )/ - /$' $*)'!*0- сц спрт Ҋ р р  . /*-Ѷ -$)"$)" 0)$,0  $).$"#/ )  + -.+ /$1  /* /#  *-  0'$  2. +- 1$*0.'4  +-/) - / '2 !$-( & - о  )5$  )) - ))) сх-спрч Ҋ р р  2# - .# .+ $'$. $)( -" -.о,0$.$/$*).Ѷ+-$1/  ,0$/4 - "- $)"/# #'' )" .! 4$) + ) )/- /$' -.) /#  *)$)) 24 - су 0)спру Ҋ р р  ) *-+*-/ - ./-0/0- .ѵ 0'$ $.- 0/ *!/# 0./-'$) 1'0' -*' /# 4+'4$)/# *((0)$/4ѵ0--42.+- 1$*0.'4 0--4 *- ) ст спрх Ҋ р р  )./$/0/ *!*(+)4$- /*-.) 2.!*-( -'4*)Ҋ 3 0/$1  )"$)" $- /*- *! 2  ')  0.$) .. ** ./0!!. *-/# ' ).# ст/спрф Ҋ р р  .')  $($/ Ѷ  *Ҋ*+ -/$1  2#*' .'  *(+)4Ѷ .0++'4$)" $- /*- *!  Ѷ  )/$*)' ..*$/$*) 2#$# - +- . )/. /#  /-$& ''24 сц спрт сф 0)спрч р р  $) + ) )/'4 *2)  )  *+ -/  0.$) .. . $) /#  +-$1/  ,0$/4) 1 )/0- +$/'$) 0./-$ .$)0./-'$ѵ җҘ -0--42.++*$)/ .#$-*!/# *- *)сц0"0./спрфѵ .0+ -(-& /.Ѷ!** . -1$ ) '$,0*-. /*-.ѵ #.'.*# '  җҘ Following Mr Allaway’s - .$")/$*)Ѷ.24 -2.++*$)/ .#$-*!/# 0 $/Ѷ$.&о*(+'$) *(($// *)р 0'4спрчѵ & 4 ()" ( )/ +*.$/$*). $) +-*+ -/4 1 '*+( )/ )  ) ()$!$/$*)) $).0-) *!$- /*-.) !!$ -. җҘ .'!*0-2.++*$)/ .#$-*!/#  *+' о0'/0- *(($// *)рх/* -спруѵ $)1 ./( )/ѵ ) - /#  *)./$/0/$*) *! /#  *(+)4Ѷ /#  *(+)4  0--4 $.  )*)Ҋ 3 0/$1  $- /*- *! &4 $/4 )/ -/$)( )/ $) ()$!$ .җ/*/# !0'' 3/ )/+ -($// 4'2Ҙ #$- /*-Ѷ -*(/$( /*/$( Ѷ $/$*)'*- *(($// .-  ./'$.# ) ( /$)".*!/#*. *(($// .- # ' /#-*0"#*0//# 4 -Ѷ!*- -*0+ $($/ җ.$)   ( -спрхҘѶ/ 1 ).*)-*0+ $($/  /# *(+)4 - /-4Ѷ+./$- /*-.) *(+)4 - /-$ .Ѷ 3(+' Ѷ/**).$ -(/ -$'/-)./$*).*-(/ -$'$..0 ./#/(4-$. ѵ# *- '.*#*' .- "0'-''.2$/#/# -*0+ җ.$)  0'4спрхҘ) #*-0. $($/ җ.$)  +/ ( -спрфҘѶ ) ''+./) +- . )/ 3 0/$1 *!!$ -.җ. !$) 0) -/#  /*./4- ./*!0-- )/(// -.ѵ# . *(($// ( /$)".) 0+ / ''.- )*/$)'0 $)/# *1 /' ѵ #   2  ')  *(+)4ѵ  $. '.*  /-0./  *! /#  *)./$/0/$*)Ҙ "$)./ '' '*.. . )  '$$'$/$ . $)0--  . ) ) $/$*)Ѷ/# -*0+#*' ../-/ "4. ..$*) #4 -ѵ )ршѶ/#$../-/ "4. ..$*)2.# ' $)/* -спрчѵ''*- ( ( -. /-.#$+*0) /$*)$) 2 ') /#/-$. .!0) .!*-/#  *!!$ -*! /.#*-$/.- '/ *(+)$ .ѵ# $) ()$/4'.* $)*!!$ //#//$( // ) /# рш./-/ "4. ..$*)ѵ National Children’s Hospital and a trustee of the Foodstuffs $)'0 . - .*)'  *./. )  3+ ). . $)0--  4 .0# ) ( ( -+-*/ /$*)) *Ҋ*+ -/$1 + -+ /0/$*)/-0./.ѵ *!!$ - $) .0 ..!0''4 ! ) $)" +-* $)". - '/$)" /* /#/ person’s position. The Company must enter into a deed  $) ()$!4$)".0#*!!$ -.*)/# . / -(.Ѷ$!/# *!!$ -- ,0 ./.ѵ  #  *(+)4 #. )/ -  $)/* .0# . 2$/# # *! $/. $- /*-.) /# *(+)4 - /-4ѵ 0-$)"/# !$))$'4 -Ѷ/# *(+)4#.+$ Ѷ*-"- /*+4Ѷ +- ($0($)- .+ /*!*)/-/*!$).0-) $).0-$)"*!!$ -. җ) )4+ -.*).2#*- *!!$ -.$)/# !0/0- Ҙ"$)./ -/$) '$$'$/$ .$)0-- $)/#/+$/4ѵ$.'*.0- *!/# /*/'(*0)/ *!/# +- ($0(.) /# )/0- *!/# '$$'$/$ .$)- .+ /*!.0# $).0-) $.+-*#$$/ 4/# *)/-/*!$).0-) ѵ

         

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 42 Metcash Annual Report 2019  43   Directors’ report report (continued) continued Directors’ report report (continued) continued *-/#For the year4 - ended ) 30 тп+-$'спр April 2019 ш *-/#For the year4 - ended ) 30 тп+-$'спр April 2019 ш

 (0) -/$*)- +*-/ Short term incentives "($/ '! -)0)$3)!*ڿхрѵц*/ڿуцѵу)*-! "(- (./'0. - - -*. (' ('**+(* . - -*!. )*/0*   рѶхппѶпппѵڦ/ ($)- / ( .# ’.) -*( .ѵ'*0//$*)Ѷ *+ -- '*# -#-  ) #'!*!/# *-  (+' . /*+- . )/*0- (0) -/$*) +*-/!*-/# !$))$'4 - ) тп+-$'спршѵ  '$ 1 /#  Long term incentive schemes  #/*/(*$/$ ( /рф0"0./спршѵ. $)" (+'*4  /*)'4/*/# %Ѷ.0ڿ/шп''41 ./-/$/*+ / $. 3+  '.ѵ # рцҊрш0 $1$ & 4$) )0.$) .. .Ѷ*0-#./ !* ()-*!- + #/!*(*$/ '! --$! -- 4 #/-*!. )*/0* 0-!-( 2*-& . -1$ *) $/$*)Ѷ/#$.+')2..0% //*/2* ,0''4Ҋ2 $"#/ + -!*-() #0- ' .Ѷ $)"- '/$1 /*/'.#- #*' -- /0-)җҘ ) 0) -'4$)" -)$)".+ -.#- *(+*0) ))0'"-*2/#-/ җҘѵ. *))$) + ) )/1'0/$*)Ѷ/# /0' *( ѵ3$(0(*0/ //#.( /' 2 /# - !*- /#$.#0- )Ѷ+0*-"- + #/(#/- #"$#ڿ.руѵч2 + -$*)4Ѷ #*-/ҊTerm Incentive (‘STI’) and LongҊTerm Incentive (‘LTI’) components and is designed to *1 -/# + -!*-(  $3 . .$-+)* 4+  $1/0 3 '2 $"#/$)"Ѷѵ$1 )/#  ,0 1 $#.2 )*/0*#/ -/ڿ)чп /# - !*- )Ѷ *$- + ). #/- 1* 1 $#.2ڿ*( .!*- фѵх '$1 -4*!+*.$/$1 *0/  ' *)/#4#$.+Ѷ2#$&.$-/(*$/- (0) -!*(*$/-*+*-+/($!$("$. 1#. $1/0 3 /#/ 0-.( ѵڿ/шп /* / 1 ./$)"$. 3+ $)*( 2$//Ѷ /# '$./.Ѷ*)$ /$*).+'- (0) - )/ 3/ -) + ) 4$) -&#( ) - -0/$1 - 2 *(+*) )/.*! 3ѵ''.- '*# -#. "$)./+ -"-*0+*!*(+)$ .- !' /$)".$($'-$) 0./-4Ѷ- 1 )0 Ѷ.. /' 1 ') (-& /+$/'$./$*)ѵ   *)/$)0 /*'$./ )/*.#- #*' -.) - !$) *0-+4($3) ./-0/0- ѵ )ршѶ2 *)'0 /#- Ҋ4 -+4($3/-).$/$*) 0% //*( /$)"/# . -1$ *) $/$*)Ѷ/#   2$'' . //' $)/# !*-(*! /.#.#- .Ѷ+0-#. *)Ҋ(-& /) ''*/ /* which has seen a progressive increase in executive ‘at risk’ pay as a component of onҊ/-" //*/'- 2- ѵ +-/$$+)/.*)рф0"0./спршѵ#- .''*/ /* (+'*4 .2$'')*/  '$"$' !*-/# рш!$)' $1$ ) Ѷ*).$./ )/2$/#/# +') -0' .ѵ#$'./.#- .''*/ /* (+'*4 .2$'')*/ - ./-$/ !-*(/- $)"Ѷ 2$'' .0% //*/# ($)$(0(.#- #*' $)" 1 -/# './4 -2 #1 '.*- .+*) /*! &!-*(*0-.#- #*' -.) *(+' /  + -- 1$ 2*! 3 0/$1 +4ѵ ) +*'$4ѵ *).0'//$*)2$/# Ѷ2  3+'*-  *+/$)"/#  ( -"$)"(-& /+-/$ *!.$)"' 1-$' - 2- .# ( ѵ#$./4+ *!+') (#/- / -" (ڿ)рп/ -/# )"-#$ 1 ..#0-$! /)/2$''*)'4*"-   -/# спҊсс 4ѵ 0''1 ./$)"0)/0$, .  - $1' "($  4+  ()-*!- + !* (*$/-*+*-+ - "-'  ($ /'0. - 4''4+$/ 4 #/ ( $1" .. ( $1/-// '$/$($  )*.  # ѵڿ/$*).Ѷ 2  стѵр)$.).$)*/# -*-"/$*)*!/# . +'++'$'/$/$*)/* /# +-&$)- ' -! - #*' -$)"/# .# *).$Ѷ- 1 2* / -($) .$($'-*0/*( *0'  #$ 1 /#-*0"#.+ $!$#)" ./*/# 0-- )/ )   +').ѵ# . #)" .Ѷ2#$#  2 - .0% //*) 3/ -)'$) + ) )/ 3+ -/- 1$ 2Ѷ- .0'/$))**1 -''$)- . /*/# /*/'1'0 *! 3 0/$1 - 2- .) - /  *)Ҋ 3 0/$1 $- /*-- (0) -/$*) ./-*)" -'$)& /2 ) 3 0/$1 .) .#- #*' -.ѵ - 1$ 2*! $- /*-! .2.*(+' / 4*) 2$//- .0'/$)"$)(* ./$)- . .$)ршѵ#$'./! .- ($) '*2/# *(+-$.*) + -"-*0+.2$/#/# -*0+Ѷ/# *- #. / -($) /#//# - 2$'' )*! $)- . .$)спѵ )спѶ2 2$''$)/-* 0  ! --  --)" ( )/2$/#+*-/$*)*!)4$) )/$1  -)  ! -- )  '$1 - . ,0$/4ѵ )   $/$*)Ѷ2 2$'' 3+) /# ($)$(0(.#- #*' $)""0$ '$) ./*$)'0 & 4 3 0/$1 .ѵ0- 3 0/$1 .2$''#1 /# (%*-$/4*! *).$./ )/2$/#"** *-+*-/ "*1 -)) Ѷ*(+- # ).$1  3/ -)'- 1$ 2*!*- + -!*-() )  !! /$1 ) ..$.0) -/& ) /# $-*)Ҋtarget ‘at risk’ remuneration delivered as deferred equity.  1 -4/2*4 -.ѵ +-/$$+/ $)/#$.- 1$ 2 /2 )+-$'спрш/* 0) спршѵ # + -!*-() *) $/$*).!*-/# ) 3/  "-)/Ѷ2#$#*1 -/# /#- 4 -. ) $)"тп+-$'спссѶ#1  )( ) /* ).0-    // -'$")( )/ /2 ).#- #*' -$)/ - ./.) *0-) 2./-/ "$Mfutur $)$/$/$1 .ѵ# /2*+ -!*-() *) $/$*).!*-/#   '$ 1 *0-- (0) -/$*)!-( 2*-&) *0/*( .!*-/# 4 - '$1 -') )  ,0$/' *0/*( !*-''./& #*' -.ѵ  җҘ .(+'*4  /0-)*)0) )Ҙڿ.0- җфп - /0-)җҘ( - #*''#.*'0/ */) )/2$''"-  спҊсс /$1 ѵ/#$. +*-/$)!*-( /-0./4*0!$) ))&4*0!*-4*0-*)"*$)".0++*-//# Ҙѵڿҗфп 0-. )  I’m delighted to share that we have made a significant improvement in gender pay parity over the last 12 months. The Workplac    ) -,0'$/4" )42-  /.#2$/#/# (+'*4 -*!#*$ $//$*)ѵ /.#$.*) *!*)'4! 2*-")$./$*).-*..  0./-'$/*-  $1 /# $//$*)Ѷ2#$#- *")$. . (+'*4 -*(($/( )/)  ./+-/$ $)+-*(*/$)"" ) - ,0'$/4$)0./-'$)  2*-&+' .ѵ  рш+ -!*-()    0- (-& /. *)/$)0  /*   #$"#'4 *(+ /$/$1 Ѷ +-/$0'-'4 $) **  2# -   #$"# ' 1 ' *! +-*(*/$*)' /$1$/4 )  !'/$*)  #/рп ($''$*) *! $)1 ./( )/ $) "-*2ڦۡ #/$/$*).Ѷ /*" /# - 2$ *) -& /*(+ /$/$1  ( ѵ #  #$"#'4- 4  #/ /0*#"0*-#/  0($/(*   -2 - Ѷ2$/# /*- +*-/"-*2/#$) *)/$)0 -2 -  )$,0*- фѵх($''$*)ѵڦ4"($($' ."($(-  **($ /'0. -. $1/$/$($  4 '$) / - .0'/$/$*)Ѷ/# *-+*- ) ѵ  ,0$.$/$*)*! /$1 *!/# .4) -"$ .!-*(/# $)"- !'ррѵш($''$*)ڦ0+."($(-  $(ѵ' )$).0- 0)/$)"2**  /$*)/*/# . //' ( )/*!/#+-*1$.$*)$)- '. *! /# - ' '0-$) ./# +-$*-4ррѵч($''$*)ڦ $*)'!*0-  //$))* 0'/0- ) $-Ѷ *+'рфп #ڦ' ..!0*./.!*''*2$)"/# .0 )#$"# -!$) ) *1 )*/ /$1 *!/# '*2 - #$.- !'хѵх($''$*)2#$ڦ . -    )/.ѵссѵх*/ڿрѵч . -- $)-)$)".+ -.#  -'4$)" &Ѷ0)04 - .0'/*!/#.)/'4Ѷ(+*-/ ѵ&04 -#.(*$''$)  ѵڿ/$**!шс/$*)-'$. .#-Ѷ- .0'/$)"$).2*'!#."($/- +*"(*-/. /- ( "*/. 0($/(*0+*- # $1$ ) .!*-/# 4 -$)- . 4пѵф )/./*ртѵф )/.+ -.#- ѵ   (0) -/$*)*0/*( . Fixed remuneration Mr Soller and Mr Marshall received increases in fixed remuneration during the year. Mr Soller’s increase 2.2- /*- ($) aligned to the benchmarked peer group while Mr Marshall’s increase 2. 0 /*$)- . - .+*).$$'$/$ .2#$#)*2$)'0 '  $)" /# '*"$./$.!0)/$*)!*-*/#/# ** )  $,0*-+$''-.ѵ .+-/*!/# *) 2$//+4 )#(-&$)"- 1$ 2Ѷ$/2.)*/ /#/ 3 0/$1 +4#.*)/$)0 /*$)- . -*..*0-+ -"-*0+Ѷ +-/$0'-'4!*-/# -*0+' 1 'ѵ$3 - (0) -/$*)!*-- (.$. '*2/# + -"-*0+(-& /( $)Ѷ#*2 1 -Ѷ- (. #.#*. )/*!*-"*)4(-& /$)- . $)спѵ//#  / *!/#$.- +*-/Ѷ$/$.)*/)/$$+/ /#/*/# -( ( -.*!/#  2$''  2- !$3 $)- . .$)спѵ# *- 2$''- 1$ 2all KMP’s +4$)ср$)'$) 2$/#(-& / /) *(+)4+ -!*-() ѵ

 /.#-*0+Ҟ$))$' +*-/рш рс  /.#-*0+Ҟ$))$' +*-/рш рт 44 Metcash Annual Report 2019 45 Directors’ report report (continued) continued Directors’ report report (continued) continued *-/#For the year4 - ended ) 30 тп+-$'спр April 2019 ш *-/#For the year4 - ended ) 30 тп+-$'спр April 2019 ш

*)/ )/.*! +*-/ сѵ  (0) -/$*)"*1 -)) 

 /$*)рѵ 1 -1$ 2*!/#  (0) -/$*) +*-/ The People & Culture Committee (‘Committee’) is the key governing body in respect of remuneration matters. In addition to   /$*)сѵ  (0) -/$*)"*1 -))  *)Ҋ 3 0/$1  $- /*- )  3 0/$1  - (0) -/$*)Ѷ /#  *(($//  *1 -. . (%*- + *+' Ҋ- '/  +-*"-(. .0# . 0'/0- Ѷ  /$*)тѵ 3 0/$1 - (0) -/$*)+*'$4 $1 -.$/4) $)'0.$*)ѵ  /$*)уѵ  -!*-() ) - (0) -/$*)*0/*( .  /$*)фѵ . -1$ "- ( )/. # *(($// (& .- *(( ) /$*)./*/# *- . *)$/.- 1$ 2*!+-*+*.'.-  $1 !-*(()" ( )/ѵ# *(($//   /$*)хѵ *)Ҋ 3 0/$1 $- /*-- (0) -/$*) (4'.**(($..$*) 3/ -)' 1$. -./*+-*1$ $)!*-(/$*)) ҝ*-- *(( ) /$*).*)- (0) -/$*)ѵ !- *(( ) /$*).-   /$*)цѵ //0/*-4 $.'*.0- . .*0"#/$)- .+ /*! - (0) -/$*)Ѷ$)/ -/$*)2$/# 3/ -)' 1$. -.$."*1 -) 4+-*/**'Ѷ2#$# ).0- ./# *(($// )  /$*)чѵ $)$(0(.#- #*' $)""0$ '$) . */$)$) + ) )/ 1$ ѵ# *(($// #$-++*$)/.)  )"" . $- /'42$/# 3/ -)' 1$. -.*) - (0) -/$*)(// -.ѵ 0-/# -Ѷ- (0) -/$*)- *(( ) /$*).*/$) !-*( 3/ -)' 1$. -.- 0. ."0$ Ѷ-/# -/#)..0./$/0/ !*-/#   Committee’s thorough consideration of the relevant matters. The Committee considers the recommendations, along with o/# - - ' 1)/!/*-.Ѷ$)(&$)"- (0) -/$*) $.$*).ѵ рѵ 1 -1$ 2*!/#  (0) -/$*) +*-/ */#/# *(($// ) /# *- - ./$.!$ /#//#  3$./$)"+-*/**'. ).0- /#/- (0) -/$*)- *(( ) /$*).*/$)  # $- /*-.+- . )//#  (0) -/$*) +*-/!*-/# *(+)4) $ts controlled entities (the ‘Group’) for the year ended 30 April !-*( 3/ -)' 1$. -.- !- !-*(0) 0 $)!'0 ) !-*(/#  /*2#*(/# - (0) -/$*)- *(( ) /$*).++'4ѵ 2019 (‘FY19’). This report forms part of the Directors’ Report and has been audited in accordance with section 308(3C) of the Corporations Act 2001) 0./-'$)*0)/$)"/) - .ѵ *) 2$//2. )"" $)рш/*+-*1$ - *(( ) /$*).$)- '/$*)/*/# сп - (0) -/$*)ѵ -1$ .+-*1$ 4*) 2$//$)'0  )#(-&$)"(-& /- (0) -/$*)' 1 '.Ѷ$)'0 $)".#*-/Ҋ/ -(җ Ҙ) '*)"Ҋ/ -($) )/$1 .җ  Ҙѵ*/'! .*! ($/-  2$//+-*1$ /$*).Ѷ*) *(( ) /$*)-$/$*)/*- (0) - )  .ѵ!*-/# . . -1$ $усѶсупҘ2 - +ڦттѶсппҗрчѷڦ  port sets out the remuneration arrangements for the Group’s Key Management Personnel (‘KMP’), comprising its -  #  .ѵ!*-/# . . -1$ $рутѶпшпҘ2 - +ڦрхшѶттхҗрчѷڦ!*. !'/*-ѵ 0-$)"/# 4  .. -1$ /Ҋexecutive Directors, Group Chief Executive Officer (‘Group CEO’) and Group Executives of Metcash, who together have the */# -+ *+' Ҋ- '(* 0/#*-$/4) - .+*).$$'$/4!*-+'))$)"Ѷ $- /$)") *)/-*''$)"/# /$1$/$ .*!/# -*0+ѵ 2. )"" $)рш/*- 1$ 2/#  3 0/$1 +4./-0/0- /* ).0- $/2.'$") /* ( -"$)"*)/ (+*--4+-/$ .)   .ѵ!*-/# . . -1$ $чпѶхпуҗрчѷ)$'Ҙ2 - +ڦ!*. !'/* -$)/ - ./.ѵ - #*' '*2ѵ .# - '$./рш($  #

(  *.$/$*)  -(. $)рш )  $/$*)Ѷ  2. )""  4 /#  *(($//  /* +-*1$  ) *+$)$*) *) (-& / .0$/$'$/4 )  ++-*+-$/ ) .. *! /#  сп  .ѵ!*-/# . . -1$ $рфѶтппҗрчѷ)$'Ҙ2 - +ڦ!*. !'/*ѵ("$. 4-+ $1/0 3    *)Ҋ 3 0/$1 $- /*-.    * -/0--4 #$- 0''4 - $*)'!*0- $- /*- 0''4 - тѵ 3 0/$1 - (0) -/$*)+*'$4 )) - ))) $- /*- 0''4 - *)$)) 24 - $- /*- 0''4 - тѵрѵ 1 -1$ 2 0--4 *- ) $- /*- 0''4 - # *1 --#$)"*% ctives of Metcash’s executive remuneration policy are for remuneration to be: ' ).# $- /*- 0''4 - /-$&''24 $- /*- р4спрч/*сф 0) спрч • ommensurate with the Group’s longҊ/ -(+ -!*-() - !' / $)( /-$./#/ -$1 .#- #*' -1'0 Ѹ    • //# ' 1 ')  ..-4/*//-/) - /$)/# '  -.#$+) +$'$/4- ,0$- 4/# -*0+Ѹ)  3 0/$1 $- /*-   • *(( ).0-/ with the Group’s currentҊyear performance and the executive’s contribution to it. !! (. Group Chief Executive Officer (‘Group CEO’) 0''4 -      # *(($// /& .*).$ - Ѷ$/ -/$1 ) *). -1/$1 ++-*#/* 3 0/$1 - 2-  .$")ѵ# -*0+*(( ) %*0-) 4 -*0+3 0/$1 .   ./-/$)"$)рф/*$(+' ( )/(-& /Ҋ'$") - (0) -/$*)./-0/0- ѵ1 -/# +./!*0-4 -.Ѷ+-*"- ..#. )( /* // - - *'' - Group Chief Financial Officer (‘CFO’) 0''4 - '$")*0/*( .2$/#(-& /+-/$ .) .#- #*' -! &ѵ1 -/# './/2*4 -.Ѷ2 #1 -  $1 ! &!-*(+-*34 *//-.#'' #$ !3 0/$1 !!$ -Ѷ**  0''4 -  1$.*-.Ѷ$)1 ./*-.) .#- #*' -../*#*2/# - (0) -/$*)./-0/0- *! 3 0/$1 .*0'  $(+-*1 Ѷ.+ $!$''4- '/ /*ѷ -& $ '2 Chief Executive Officer, Independent Hardware Group (‘IHG’) 0''4 - • - /$)"./-*)" -'$")( )/ /2 ) 3 0/$1 - 2- ) .#- #*' -*0/*( ."$1 )  3 0/$1 .#*' ! 2.#- .Ѹ  •  !' /$)"#)"$)"- (0) -/$*)+-/$ .$)/# (-& /Ѹ)  #-$. *&2$''*(( ) #$. (+'*4( )/as Chief Executive Officer, Australian Liquor Marketers (‘ALM’) $) 0'4спрш) 2$'' • #   + -!*-() #0- ' .- )*/'24.+ - $1 .'$") /*Ѷ)*-- '$' $) $/*-*!Ѷ'*)"/ -(.0./$)$'$/4) /#   - +*-/ . !-*(спѵ  ./-/ "$ $- /$*)*!/# *(+)4ѵ   *-/# - ($) -*!/#$.- +*-/Ѷ/# -*0+) -*0+3 0/$1 .- - ! -- /*./#  ѵ )  #'! *! /#  *- Ѷ /#  *(($//  )""   )   /* 0) -/&  /#  - 1$ 2 *! /#  3$./$)" +') .$") )  (&   - *(( ) /$*)../*#*2/# . *0'  ( ) $)/#  ./$)/ - ./.*!*/# (+'*4 .) .#- #*' -.ѵ# .0. ,0 )/ #)" .( 4/# *- 2$''- .0'/$))**1 -''$)- . /*/# /*/'1'0 *! 3 0/$1 - 2- Ѷ#*2 1 -Ѷ/# #)" .2$''ѷ • )- .  /#  +-*+*-/$*) *! + -!*-() Ҋ.  1-$'  - 2-  '$1 -  . ,0$/4 )  *). ,0 )/'4 - 0  /#  .#  +-*+*-/$*)Ѹ • )- . .#- #*' $)".# ' 4 - .0'/$)"$)"- / -'$")( )/ /2 ) 3 0/$1 - 2- ) .#- #*' - $)/ - ./.Ѷ 2#$#  $.)*/.*' '4- '$)/0+*)/# /#- Ҋ4 -  +')Ѹ)  •  // -'$")/# + -!*-() ( /-$.!*-/#   +')/*/# 0.$) .../-/ "4ѵ   

 /.#-*0+Ҟ$))$' +*-/рш ру  /.#-*0+Ҟ$))$' +*-/рш рф 46 Metcash Annual Report 2019 47 Directors’ report report (continued) continued Directors’ report report (continued) continued For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш

# /'  '*2.#*2./# %*0-) 42 #1 ( 2$/#3 0/$1 4*1 -/# +./!*0-4 -.) $)/*спѷ ) ) +**'$.- ' . !*- $./ribution, a participant’s STI award is determined based on individual performance)  #1$*0-.ѵ

 )$) $1$ 0'’s*1 -''+ -!*-() -/$)"$. ,0''4Ҋ2 $"#/  /2 )/# $-.*- - - .0'/.)  /.# #1$*0-.ѵ ) $1$ 0'  #//#/*. '.*.' -./''- .00 $1$ ) ѵڿрфп*/ڿ/*-*!п!4 -$).//# +**'- 2"(0'/$+'$ -./. )рф  рх  рц  рч • рш  сп + -!*-(  

  • $))$'  • -& /Ҋ'$")   •  +**'!0)   • -/$$+)/ • )/-* 0/$*)*!•  • -& /'$") +-/ collective individual participants’ results are distributed in a manner consistent with a normal distribution curve and also .0#/#/ + -!*-()  .$") /#-*0"#*(+)4  #1$*0-.  /.# #1$*0-. ! --'*! $)/* /# ""- "/  +4( )/.-*../# +**' *)*/ 3 /#  +**'(*0)/ѵ  !$))$' $)/-* 0 $)/* .) ,0''4Ҋ .#- -$"#/. ѵ. - -* ('-$ #/($"($/#"$ 2ڿхп/$1 .- +- . )/ %'*$)Ѷ!$) -*   /#"$ 2    ( ()-*!- + '$(($ • + -!*-() )  +$ *)+-/$$+)/.  / -($)$)"!/*- • %*-$/4*!

 /-).!*-(/$*) ') *- -  •  0   + -!*-() +4 *' Ҋ.+ $!$)*)Ҋfinancial measures included in the Balanced Scorecards reflect KMP’s key strategic objective.) $)'0 $)- . .  +-*"- .. + -!*-()  2 $"#/$)"$)/*/' •  0 2 $"#/$)" '$1 - $) ,0$/4 $)- /$' -.' .Ѷ$(+-*1 ( )/.$)- /$' -) .0++'$ -./$.!/$*)Ѷ '$1 -4*!./*- - !- .#/-" /.Ѷ$(+-*1 ( )/.$).! /4Ѷ '$1 -4   - (0) -/$*)($3 $)/*/' • /- /#/-" /. • )- . 2 $"#/$)" - (0) -/$*)($3 *!.+ $!$+-*% /.Ѷ) / (0'/0- #)" )  )"" ( )/"*'.ѵ $)/-* 0 /* -$1  $)/*/'  $(+-*1 +-*!$/ - (0) -/$*)($3  #  ') *- - + -!*-() ( .0- .1-4!*- # . *)/# 0 " /.) ./-/ "$ .!*-/# $-- .+ /$1 +$''-.ѵ *0/*( . # .*- - .!*- .!*-рш- . /*0/ '*2ѷ            • •     • руҊрх"-)/. • *) 2"-)/. •  .0(+/$*)*! • )- .  • )-• .  2 $"#/$)" • $)$(0(      *).*'$ / $)/*  ))0'"-)/ 2 $"#/$)"$)/*/' $)/*/' #- #*' $)"*'$4 ') *- -   $"#/$)".  .0-  #- .#*'  -" / /- /#  .0'/ *) /#- Ҋ4 -"-)/ • *1 - 4 +-*"-( - (0) -/$*)($3 - (0) -/$*)($3 3+) /**1 -        җ-).!*-(/$*) -).!*-(/$*)   ''  $))$'% /$1 .       $) )/$1 Ҙ ) )/$1  • -& /Ҋ'$")  • $)$(0(   1**// "-2*'  / " 0 1*ڿсѵф۔ / " 0 / " 02*' ڿҊсѵф . ' ڿDeliver Financial Results хп •  .$")2$/#)  .#- #*' $)"+*'$4  сп–сс -)$)".#0- ' . *1 -$)". + -!*-()  -" /  / "- 1* / " 0 1*ڿфѵп۔ / " 0 / " 02*' ڿѷ  Ҋфѵп.(*$/$ (*  / "- / " 0 1*ڿфѵп۔ / " 0 / " 02*' ڿҊфѵп     ( ($"($/#"$ -2 2* • #/ -/*// "- / " 0 1*ڿфѵп۔ / " 0 / " 02*' ڿҊфѵп   (*$/- (0) -'/*/ ($3        *)Ҋ!$))$'% /$1 .      0--/) -.       #/ -/*// "- .- '$/ --0*..*-/'0. -. './ "- ڿсп*/ڿ*(+*) )/. Growth for Retailers ф/$*)тѵсѵ  (0) - Partner of Choice тѵсѵрѵ $3 - (0) -/$*)    0- *+'        #/ -/*// "- 1* +$#.-   (/( ) ""( ڿсп*/ڿ Strong & Positive Culture рп )Fixed remuneration at Metcash is referred to as Total Employment Cost (‘TEC’). TEC comprises salary, statutory superannuation .'-4.-$!$ $/ (..0#.(*/*-1 #$' ' . )  $/$*)'.0+ -))0/$*)*)/-$0/$*).ѵ Safety

TEC levels are set according to the nature and scope of the executive’s role as well as his/her performance and experience. M /.# 0-0.$) .. #/ -/*// "- ./ %*-#/2*-$" /-/!*4- 1$'  ڿсп*/ڿ/ Top Growth Projects ф*(+' 3$/4 ) ' .$5-*(+)$ .*!*(+ 0)'$./ ) Ҋ'$./*/ ( - ! -#/2$(*$/- (0) - $1/0 3 ./$.&-)#(  /# ( $)+ - )/$' ' 1 'ѵ     The Committee recommends changes to KMP remuneration each year, taking into consideration market trends, the executive’s job рш*0/*( ."$).//#$.') *- - - .0((-$.  '*2ѷ size and the executive’s performance. Changes to KMP remuneration are endorsed 4/# *(($// ) - *(( ) /*/# *-   !*-++-*1'ѵ   (.  *'' -  -.#''   $ '2 Mr Soller and Mr Marshall received increases in fixed remuneration during the year. The increase in Mr Soller’s TEC was requi- /* ') *- - 0/*( . -*0+ -*0+ Ҋо Ҋ            /$1 -&. while the increase in Mr Marshall’s TEC to $чшсѶфпп !!#( ) -& /чшсѶфпп 2$/# (ڦ !* (*$/- (0) -  $3! .$# ("$'         Ҙڿҗхп. $1/ %'$(($ р )0-4спрш2.- .0'/*!$)- . - .+*).$$'$/$ .2#$#)*2$)'0 '  $)"/# '*"$./$.!0)/$*)!*-*/#/# ** )  $,0*- Sales  -" /  -" /  *1 -" /   '*2-" / +$''-.ѵ UPAT  *1 -" /  *1 -" /  ҝ  ҝ EBIT  .+$/  $)" '*2/# (-& / /+ -"-*0+Ѷ- (.#.#*. )/*!*-"*)4(-& /$)- . $)спѵ//#  / *!/#$.- +*-/Ѷ  -" /  -" /  -" /  -" / ROFE  /- /#  /- /#  /- /#  -" / $/$.)*/)/$$+/ /#/*/# -( ( -.*!/#  2$'' 2- !$3 $)- . .$)спѵ                           Ҙڿ/$1 .җуп %'$) )/$1 . *)Ҋ!$)) тѵсѵсѵ #*-/ -( 0--/) -.         The Group’s STI plan is an atҊ-$.&Ѷ.#Ҋ. *(+*) )/*!/*/'- (0) -/$*)ѵ /.+0-+*. $./*$) )/$1$. . )$*- 3 0/$1 ./* Growth for Retailers   -" /  ҝ  *1 -" /  -" / '$1 -))0'+ -!*-() *0/*( .'$") /*.#- #*' -$)/ - ./.ѵ Partner of Choice  ҝ  ҝ  /- /#  *1 -" /         #  -*0+ )  $''-   +**' *0/*( . -  / -($)  2$/# - ! - )  /* +- Ҋ / -($)  0) -'4$)" -*0+ )  $''-   0- *+'         + -!*-() ( .0- .ѵ)  / -($) Ѷ) +**'$. $./-$0/ -*..$) $1$ 0'+-/$$+)/.. *)/# $-- '/$1 $) $1$ 0' Strong & Positive Culture  /- /#  /- /#  *1 -" /  /- /# ') *- - + -!*-() )  #1$*0-'*0/*( .Ѷ ,0''4Ҋ2 $"#/ ѵ Safety  *1 -" /  *1 -" /  *1 -" /  *1 -" /          +**'.- *)'4- ' . !*- $./-$0/$*)2# )/# /#- .#*' -*0+*-$''- 0 " /- .0'/Ѷ.++'$' Ѷ$.#$ 1 ѵ#  0-0.$) ..         *- (4'.* 3 -$. $/. $.- /$*)/* %0.//# +**'/*- !' //# + -!*-() *!/# -*0+*-.+ $!$$''-ѵ Top Growth Projects  -" /  /- /#  *1 -" /  -" /   / " 0#$ 1 ( )/*!ѵ.'**+  1$/ +. - #/!*ڿ. .фп - ' -Achievement of a ‘Minimum’ 95% of budgeted-*0+*-$''  or ‘Target’ financial performance releases 100% of an STI pool. OverҊ#$ 1 ( )/*!/# 0 " / !$))$'+ -!*-() $.++   ѵ'**+ (!*ڿрфп/ # -*0+) -*0++-/$$+/ $)/# -*0+ +**'ѵ# +$''-.+-/$$+/ $)/# $-- .+ /$1 $''- +**'.2#$# -  / -($) 4*($)/$*)*!/# $-- .+ /$1 +$''- ) /# *).*'$ / -*0+ ѵ 

 /.#-*0+Ҟ$))$' +*-/рш рх  /.#-*0+Ҟ$))$' +*-/рш рц 48 Metcash Annual Report 2019 49 Directors’ report report (continued) continued Directors’ report report (continued) continued *-/#For the year4 - ended ) 30 тп+-$'спр April 2019 ш For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш

#  *++*-/0)$/$ ..+ - )/" *!!*- - *0/'$)  '*2Ѷ'*)"2$/#/# /0'рш 2- ..+ - )/" *! Metcash Underlying Earnings per Share Compound Annual Growth Rate (‘UEPS CAGR’) /# (3$(0( *++*-/0)$/4ѷ # -$"#/.1 ./"$).//# #0- ' .!*''*2.ѷ     рш–ср   рч–сп  рц–рш ڿ"($/. ' 1/0рш     !*ڿ 2*'  ڿсф ڿфп ڿп  '*#. -# )0)3$) )0)3$ / "-  '*#. -#  '*#. -#/   !*ڿ !*ڿ !*ڿ !*ڿ (*$/$.* ڿфп ڿхт ڿфп / "-       ڿцф ڿцф ڿхц #/ -/ ڿфшѵт ڿрфпѵп ڿххѵц ڿрхѵц ڿѶ-*0+ п.)  ڿрпп ڿрпп ڿрпп )0)$3) 1*-**/'0, ڿфцѵт ڿррсѵф ڿфпѵп ڿрсѵф ڿѶ-*0+ п- ''*  ڿхрѵц ڿррсѵф ڿфпѵп ڿрсѵф ڿ  п*)1 )$ ) )-& /.Ѷ0+ -(''#.- рчҊсп )рцҊрш #/-*!ڿхѵф(#/- / -"!*(. 1 $##./ !0-$*4'(*''2$/(-"# - (0"($/. 1''0 .ѵ + -$*)-+ -!*-( over the grants’ respective threeҊ4  ршҊср #/-*!ڿуѵп (.  ڿуцѵу ڿррсѵф ڿфпѵп ڿрсѵф ڿ п 2Ѷ' $  KMP STI rewards are subject to clawback for cause or material misstatement of the Group’s financial statements. # *- 2$''.. ../# $(+/*!/# ) 2*0)/$)"./) - рхeasesѶ 2#$# (  !! /$1 !-*(р4спршѶ*)/#  *(+*) )/*!/# рчҊсп) ршҊср  .$)*- -/*++'4*).$./ )/.$.$) / -($)$)"*1 -/# /#- Ҋ )*- -!*-)$) $1$ 0'+-/$$+)//*#$ 1 /# (3$(0(+ -!*-() *0/*( Ѷ''*!/# !*''*2$)"- .0'/.(0./  '$1 - ѷ 4 -+ -!*-() + -$* *!/# .   .ѵ • Maximum achievement against Group and/or Pillar EBIT financial performance hurdles, as applicable (‘STI pool’); and • 3$(0(#$ 1 ( )/$)*1 -''$) $1$ 0'+ -!*-() - .0'/."$)./''!$))$') )*)Ҋ!$))$'( .0- .*)/$) $)/#  -)/./* . 0-$)"/# !$))$'4 - individual’s Balanced Scorecard and an exceptional rating against Metcash’s behaviours framework. # !*''*2$)"ршҊср  "-)/2.( /*  0-$)"ршѷ

тѵсѵтѵ *)" -( ) )/$1 . -)/ )/$/' ( )/р The Group’s LTIs are designed to enable Metcash to attract and retain key executives, whilst incentivising these executives /*#$ 1  $-1'0 + - Ҙ!*ڿҗ #'' )"$)")  -)$)".#0- ' .'$") /*.#- #*' -1'0 ѵ# -*0+# !*0-/$1   +').$)*+ -/$*)$)ршѵ -/$$+)/ -)/ /  0- '   ./$)" /  *ѵ*!-$"#/. -$"#/         ڿс сш0"0./спрч  рф0"0./спср рчуѶпуш сѵфш хц.)  • рш–ср  –/#$."-)/2.$..0 /*  0-$)"рш) $..0% //*/2*+ -!*-() *) $/$*).ѷ)   рф0"0./спср рчуѶпуш пѵчу *1 -/#- Ҋ4 -+ -$* !-*(р4спрч/*тп+-$'спсрѵ ڿ0'4спрч  рф0"0./спср шрѶсфц сѵрх цп  *'' - рт )$/$*).ѷ *) )//*/2*+ -!*-( %$..0 )0-$)"рч  /* .$..0)/2–/#$."-  рч–сп • *1 -/#- Ҋ4 -+ -$* !-*(р4спрц/*тп+-$'спспѸ  рф0"0./спср шрѶсфц пѵцп  ڿ0'4спрч  рф0"0./спср шрѶсфц сѵрх цп '' рт-.#  )$/$*).ѷ *) )//*/2*+ -!*-( %..02 )0-$)"рц  /* .$..0)/2–/#$."-  рц–рш • *1 -/#- Ҋ4 -+ -$* !-*(р4спрх/*тп+-$'спршѸ)   рф0"0./спср шрѶсфц пѵцп •  )/ "-/$*) ) )/$1 "-)/–$..0 /*- $ '2 0-$)"рцѶ2#$#$..#Ҋ. //'   ѵ# +')2..0% //*/#-  ڿ0'4спрч  рф0"0./спср чпѶфср сѵрх цп рт 2' $  + -!*-()  *) $/$*).ѷ #$ 1 ( )/ *!  /#- .#*'  рч    "/ Ҋ*+ ) -Ѷ  $)/ "-/$*) .4) -"$ . ( .0-  /  рф0"0./спср чпѶфср пѵцп "($ '0җ$)  рш(*/( ( + .$/#/ -2 #/!*ڿ*(+*) )/- +- . )/$)"тт ! --  . '0$) )тп+-$'спрч р .4) -"$ .- '$./$*)Ҙ) 2#$#$. ! -- 0)/$' 0'4спршѵ # "-)/ )/$/' ( )/$. 3+- .. .+ - )/" *!/# ! 1'0 *!+ -!*-() -$"#/.$..0  $1$ 4/# +-/$$+)/.’ TEC at grant date, prior  /*)4++'$' +-*Ҋ-/$(+/!-*(+-/4 -. -1$ ѵ с# + -!*-() -$"#/."-)/2.++-*1 4.#- #*' -.//# $)0"0./спрчѵ 0-/# - /$'- "- $)" #*!/# *1   .# ( .$.. /*0/ '*2ѵ  Other than the IHG Integration Incentive, no grants issued under any of the Group’s LTI pl).1 ./ $)ршѵ# рцҊрш  $. # !*''*2$)"рчҊсп  "-)/.2 - ( /* $)рчѷ 3+ / /*+-/$''41 ./*)рф0"0./спршѶ.0% /*)'4/*/# +-/$$+)/.- ($)$)"$) (+'*4( )/0)/$'рф0"0./спршѵ -)/ $-1'0 + - )/$/' ( )/ Ҙ!*ڿѵ*!-$"#/. -$"#/ җ*  / "($/.   ' 0-  / /(- /(+$$/- .   $1/!*.)- /4 # рц–ршѶрчҊсп) ршҊср  .-  -!*-() $"#/."-)/.җ/# -$"#//*,0$-  /.#.#- ./)**./Ѷ.0% /        р ڿсѵфц хцڦ -спрц  рф0"0./спсп сттѶшпс(.  у +/ (  ' .ѵ #0-)+ -!*-( ''4Ҋ2 $"#///*/2* ,0 %- .0 )Ҙ.(*$/$ (* -1$ . ( ()-*!- +!*(*$/!.$/. #/*/ рѵцпڦ рф0"0./спсп сттѶшпс  Relative Total Shareholder Returns (‘RTSR’) ڿсѵсч фпڦ 0'4спрц  рф0"0./спсп штѶхрс ру - ''* рѵфрڦ   рф0"0./спсп штѶхрс   "$))$)"*!/# //#.)$ .$)/# тпп*(++' .*).0( -./ $)"Ѷ.- + / ' .!*0+*-"/.($" 0-. ).$ ڿсѵсч фпڦ 0'4спрц  рф0"0./спсп цшѶчух '' ру-.# .(‘Index 32 $"#/$)"ѵ# .0(*!/# 2 $"#/ )$)$)./" )$ .$.(0'/$+'$*(+4ѵ# *!/#*. + -р(* *$- +('+ рѵфрڦ TSR’) is the score against which Metcash’s TSR is compared.   рф0"0./спсп цшѶчух ڿсѵсч уцڦ 0'4спрц  рф0"0./спсп ццѶуху 2 ру' $  ѷ.2*''*!. ' #0-.$#//.($"/. 1./#"$- # рѵфрڦ рф0"0./спсп ццѶуху  ./#"$- ()-*!- + # -спрцѵ -$"#/.2 - +-*Ҋrated from the date of Mr Adams’ e(+'*4( )/*)у +/ ()+ -!*-(  рMr Adams’ FY18Ҋсп ڿ"($/.  (0-/ - '*# -#'/* $1/'    "-)/2.++-*1 4.#- #*' -.//# $)0"0./спрцѵ  ڿп 3 ( (#/..  ڿфп 3 ( */'0,  /-Ҋ'$) +-*Ҋ/#"$-/ ڿрп۔3 (  (3 ( ( 2/  ڿрпп  1*-*ڿрп۔3 (

Full vesting will only occur if Metcash’s RTSR is 10% *-#$"# -/#)/# + -*(+)$ .*1 -/# + -!*-() + -$* ѵ

 /.#-*0+Ҟ$))$' +*-/рш рч  /.#-*0+Ҟ$))$' +*-/рш рш 50 Metcash Annual Report 2019 51 Directors’ report report (continued) continued Directors’ report report (continued) continued *-/#For the year4 - ended ) 30 тп+-$'спр April 2019 ш For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш

рш*0/*( . уѵ рш+ -!*-() ) - (0) -/$*)*0/*( . # рцҊрш  "-)/( //# + -!*-() *) $/$*)..!*''*2.ѷ уѵрѵ -*0++ -!*-() ) /Ҋ-$.&- (0) -/$*)*0/*( .рфҊрш  3+ /   (  *$- +- /* $)/# !$1 Ҋ4 $+ 3$(0(" *!( )/+ - ) )'+ -!*-($).#!$) '*2.#*2 /-/.# Ҙ #ڿҗ"($/. 1 /'0. - ()-*!-  "($/#"$  (*$/$ (* ()-*!-      тп+-$'спршѵ ڿ рпп ) + -$*- +' Ҋ4 -#/  #/ - 1*  ()-*!- +  ڿфп   3 (  1*ڿруѵч.2

Earnings per Share Share Price ڿ) чп- +' Ҋ4 -#/  #/ - 1*  ()-*!- +   ڿфп  %100 4.00 %100 40  ڿфѵх.2 *$- +   3.50  20 80% 80% .  - .0'/Ѷ /#  !*''*2$)" рцҊрш   -$"#/. -  3+ /  /* 1 ./Ѷ .0% / *)'4 /* /#   - ($)$)" $) (+'*4( )/ 0)/$' 3.00 рф0"0./спршѷ - 60% 2.50 60% 2.00 (20) 40% 40% *ѵ*! *ѵ*!-$"#/. *ѵ*!-$"#/. 1.50 1.00 -/$$+)/ 0- '  -$"#/.# '  3+ / /*1 ./ !*-! $/  (40) 20% 20%

     0.50 *'' -  шсѶшхш цуѶтцх рчѶфшт (60) 0% - 0% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19  шсѶшхш шсѶшхш Ҋ Underlying EPS (cps) Statutory EPS (cps) % Maximum STI paid Closing Share Price ($) % Maximum STI paid -.#''  цшѶсшц хтѶутч рфѶчфш  цшѶсшц цшѶсшц Ҋ Net Profit Return on Funds Employed (ROFE)1  $ '2  цхѶштс хрѶфух рфѶтчх  цхѶштс цхѶштс Ҋ 300 100% 30.0% 100% 200 25.0% 80% 80%  ! -. /$*)ч*!/#$.- +*-/!*-$)!*-(/$*)$)- '/$*)/*($)$(0(.#- #*' $)""0$ '$) .$)/-* 0  0-$)"/# 0-- )/!$))$' 100 20.0% 60% 60% 4 -ѵ -!*-() -$"#/./#/ *)*/1 ./- !*-! $/ ) /# - $.)*- Ҋ/ ./$)"ѵ - 15.0% 40%  )/ "-/$*) ) )/$1  (100) 40% 10.0% (200) 5.0% 20% #   )/ "-/$*) ) )/$1 2..#Ҋ. //' .# (  .$") /*$) )/$1$. & 4( ( -.*!/#   3 0/$1 / (/*- '$.  20% (300) .$")$!$)/./- /h synergies on formation of the Independent Hardware Group (‘IHG’) following the acquisition of the Home Timber 0.0% 0% (400) 0% FY15 FY16 FY17 FY18 FY19 & Hardware Group (‘HTH’) on 2 October 2016. FY15 FY16 FY17 FY18 FY19 Underlying NPAT ($m) Statutory NPAT ($m) % Maximum STI paid ROFE (%) % Maximum STI paid # $) )/$1 2..0% //*/#- + -!*-() #0- ' . $)"ѷҗрҘ($)$(0(рч /-" /ѶҗсҘ/# #$ 1 ( )/*!($)$(0(  р ' 1 '*!*+ -/$)".4) -"$ .$)рч) җтҘ($)$(0(рш /-" /җ$)'0 $)".4) -"$ .- '$./$*)ҘѶ2#$#2.'$") /*/#  $.'0'/ . *))1 -" *!*+ )$)") '*.$)"!0) . (+'*4 ) . *)0) -'4$)" -)$)".ѵ $)/ "-/$*)./-/ "4++-*1 4/# *- //# /$( *!/#   ,0$.$/$*)ѵ  /# --*0++ -!*-() ( /-$. 0-$)"/#$.+ -$* 2 - .!*''*2.ѵ 0-$)" рчѶ  '$1 -  /#  рч   /-" / )  - '$.  (3$(0(  .4) -"$ .ѵ *- $)"'4Ѷ /#  /*/' $) )/$1  +$  /* җрҘ җрҘ җрҘ - рф  рх  рц  рч рш '4$)цпхѶчшуѵ $)ڦ.' .2 #0-)рч!*-/# !$-.//2*+ -!*-( )рц(2$' $ -

      Ҙ ррѵх ррѵц рсѵт рсѵу рсѵцڦoutoes  1 )0 җ ڿтѵт ڿҗтѵсҘ ڿуѵц ڿрхѵч ڿҘ тхѵхڿҘҗ " /$*җ) /#-$)"-  2!*-рш$.' $ 0 /*-  )/$1$)$)"$)' ѵ# - ( #0-)+ -!*-( /( //# /#$-- .0'//# рш( - $1'  0'4спршѵ ' *)рс4#$.+тучѶрцс2#$ڦ $1$ ) . '- + -.#- җ )/.Ҙ хѵф Ҋ уѵф ртѵп ртѵф ڿфцѵф ڿуцѵп ڿтхѵп ڿцчѵш ڿрцѵр )0)$3)!*ڿ. */./( )4+  "/$*)($3 1 -'- (0) -тѵсѵуѵ */ # #-/  '*2*0/'$) ./# рш- (0) -/$*)($3!*- ѵ#- (0) -/$*) *(+*) )/$..#*2).+ - )/" *!/*/' җрҘ # - 1 )0 )0( -.!*-рфѶрх) рц#1  ) %0./ /* ).0- *(+-$'$/42$/#/# рч) рш)0( -.Ѷ2#$#$)*-+*-/  - (0) -/$*)( .0- /-" /) !*-3$(0( -)$)".*++*-/0)$/4ѵ  1'0 .#1  )( .0- /"-)/ / Ѷ. *) #)" .-$.$)"!-*(рфRevenue ro ontrats ith ustoersѵ' . - ! -++ ) $3!*-!0-/# -$)!*-(/$*)ѵ /# ! 1'0 *!$) )/$1 ."-)/ $)ршѵ    +4( )/.$)рф2 - '*2.**  $ )*/( /$/..' .)  /-" /.- .0'/$)"$))$'+4( )/.!*-+-/$$+)/.Ѷ2# - .рх #   - (0) -/$*) ($3 /-).$/$*) 2. *(+' /  $) рш2$/# $3  4 җC) and STI reducing and long term ‘at risk’ pay  - !' / $(+-*1 +-*!$/$'$/4' 1 '.) .$")$!$)/$)- . $).#- +-$  0-$)"/# 4 -ѵ )рцѶ/# ** +$''-+ -!*-(  $)- .$)".+-*+*-/$*)*!/*/'- (0) -/$*)ѵ - (0) -/$*)2 $"#/$)".+ - )/" *! 0-$)"рш2..!*''*2.ѷ  '*2/#- .#*' ' 1 'Ѷ/#  $,0*-+$''-+ -!*-( //-" /' 1 ') /#  - 2- +$''- '$1 -  -)$)".$) 3 ..*!/-" /ѵ

 )рчѶ - 2- ) *-+*-/  '$1 -  - .0'/./*-*1 /# (3$(0(#0- ' ѵ#  $,0*-+$''-+ -!*-( //-" /' 1 '  -" /  3$(0( ) /# ** +$''-+ -!*-(  /2 )/#- .#*' ) /-" /ѵ&$)"$)/**0)//# $(+$-( )/*!"** 2$''Ѷ/# *- ++'$ $/. ѵ)0)$3)!*ڿуц!* "- 1(/ $+ - #22#$./( )4+   #/*/(*$/ -.$                     ) ршѶ /#  -*0+ '$1 -    - .0'/. /#/ 2 -  (-"$)''4 *1  /-" / ' 1 'ѵ #  **  )  - 2-  +$''-. + -!*-(  ѵ/ "-// )-*!- +-''$+-*0,$  #/ (' 1 '/ "-/ 1*4''($"-) ڿср ڿуц ڿтс  ڿсч ڿсш ڿут .)  ڿсу ڿуп ڿтх  ڿтр ڿст ڿух - ''* #   )/ "-/$*) ) )/$1 ) /#  3+ / +-/$'1 ./$)"*!/# рцҊрш  2 - /# *)'4  +-*"-(./#/1 ./  0-$)"/#$. ѵ -+ -$* Ҋ4 1$! ڿсу ڿуп ڿтх  ڿтр ڿст ڿух ''#.- ڿсф ڿуп ڿтф  ڿтс ڿст ڿ2р уф' $    $)рцѵ )/ )/$1 "-)  тучѶрцс*!ڦ рM Laidlaw’s LTI excludes

 /.#-*0+Ҟ$))$' +*-/рш сп  /.#-*0+Ҟ$))$' +*-/рш ср 52 Metcash Annual Report 2019 53 Directors’ report report (continued) continued Directors’ report report (continued) continued For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш

уѵсѵ /0'рш - (0) -/$*) хѵ *)Ҋ 3 0/$1 $- /*-- (0) -/$*)

# /'  '*2- !' /./0'.#+4( )/.( *- 0 /* $)- .+ /*!+ -!*-()  0-$)"ршѵ# /'  * .)*/*(+'4 2$/# - ,0$- ( )/.ѵ# - ,0$- .//0/*-4 $.'*.0- .- .#*2)$). /$*)ц*!/#$.- +*-/ѷ хѵрѵ *'$4 */' # *% /$1 .of Metcash’s policy regarding NonҊ 3 0/$1 $- /*-! .- ѷ (+'*4( )/ *./  р  сѶт */' • *+- . -1 /# $) + ) ) *!*)Ҋ 3 0/$1 $- /*-.4)*/$)'0 $)")4+ -!*-() Ҋ- '/  ' ( )/Ѹ)   ( )$/ #/*/ (. $(+)* /.$'' Ҋ-*(+/*-! .$) 0/$1 $- Ҋ 3(**/ -" -#/$2 1$/$/ +)*/ &-) * • ڦ ڦ ڦ ڦ  +-*! ..$*)'*(($/( )/$) $.#-"$)"/# - .+*).$$'$/$ .*!/# -*' ѵ  (. рѶчппѶппп рѶхппѶппп Ҋ тѶуппѶппп To align individual interests with shareholders’ interests, NonҊ 3 0/$1  $- /*-. -  )*0-"  /* #*'   /.# .#- .ѵ *)Ҋ *'' - ччшѶтур фцфѶппп уфтѶфпф рѶшрцѶчух 3 0/$1 $- ctors fund their own share purchases and must comply with Metcash’s share trading policy.  -.#'' чхуѶрхц хппѶппп тчхѶчрс рѶчфпѶшцш  $ '2 цфпѶппп уппѶппп цстѶууц рѶчцтѶууц хѵсѵ /-0/0- *!*)Ҋ 3 0/$1 $- /*-- (0) -/$*) р .#$) )/$1 +4' - '/$)"/*рш+ -!*-() under the Company’s STI scheme, as set out in table 4.3. с # рцҊрш  $. 3+ / /*1 ./ 0-$)"сп.0% /*)'4/*/#  - ($)$)"$) (+'*4( )/0)/$'рф0"0./спршѵ# (*0)/.+- . )/  *)Ҋ 3 0/$1 $- /*-- (0) -/$*)$../-0/0- .!*''*2.ѷ *1 - . *)/#  3+ / )0( -*!-$"#/./#/2$''1 ./(0'/$+'$ 4/# 1*'0( 2 $"#/ 1 -" +-$ *! /.#.#- . 0-$)"/# сп • /- $)" 4.+-  $)"/#  ) *!/# рш!$))$'4 -ѵ ''*)Ҋ 3 0/$1 $- /*-.- +$ !$3 ))0'! Ѹ т M Laidlaw’s LTI includes/#  $)/ "-/$*)$) )/$1 ѵ • # *- #$-$.+$ !$3 ))0'! 2#$#$.$)'0.$1 *!''*- Ѷ#$-) *(($// 2*-&Ѹ • 3 +/!*-/# *- #$-Ѷ $/$*)'! .- +$ /**)Ҋ 3 0/$1 $- /*-.2#*#$-*-+-/$$+/ $)*- *(($// .Ѹ уѵтѵ рш *0/*( . • *)Ҋ 3 0/$1 $- /*-.are not entitled to participate in the Group’s short or longҊ/ -($) )/$1 .# ( .Ѹ)  • * $/$*)' ) !$/.- +$ /**)Ҋ 3 0/$1 $- /*-.0+*)- /$- ( )/!-*(*!!$ ѵ -" / 3$(0( 3$(0(   +*/ )/$'  +*/ )/$'   2-   2-  !*-! $/  /$)$' ! /" -"" хѵтѵ ڦ ڦ )0)$3)!*ڿ ڦ ڦ         .рѶхппѶппп'$($/2ڦ/( 0-- -.ѵ# - #*'4.# ++-*1(*0)/ /""- "3$(0((/* - '$($//*-! . 0/$1 $- рѶхппѶппп рѶрппѶппп *)Ҋ 3 ڿрѶсппѶппп сѶцппѶппп фшѵт .)   $)спрсѵ ++-*1 фцфѶппп усшѶпхт ڿуухѶсфп рѶппуѶпхт фцѵт - ''* /*-! .ѵ 0/$1 $- $)"*)Ҋ 3 *(( ) - )' !*-- 1$ 2$)"хппѶппп тцсѶрчч #  *+' о0'/0- *(($// $.- .+*).$ ڿутсѶпчт шцсѶрчч хрѵц ''#.-  2$//ѵ# рш 4*) ..+ -!*-(-&$)"+-*#( )!0''*) .$)рш . -/*-! .2 - $) 0/$1 $- уппѶппп уутѶцфп # *)Ҋ 3 ڿтцфѶппп чутѶцфп уцѵу 2' $   ! .- 0-- )/'4. //' 1 'Ѷ*)1 -" Ѷ '*2/#  )#(-& (-& /( $)ѵ*/2$/#./) $)"Ѷ/# *- #. / -($)  /#//# - 2$'' )*! $)- . .$)спѵ фѵ . -1$ "- ( )/. 

3 0/$1   /.# хѵуѵ *)Ҋ 3 0/$1 $- /*-! ./-0/0-  (  "- ( )// -( )*/$  )*/$   0) )4

      (. *0-4 -.җ. *)0-- )/ рс(*)/#. рс(*)/#. рс(*)/#. рш рч рڦ рڦ  /$*).Ҙр'$($/уфц1$. *'' - )"*$)"0)' ..)*/$ "$1 ) т(*)/#. х(*)/#. х(*)/#.      -.#'' )"*$)"0)' ..)*/$ "$1 ) рс(*)/#. рс(*)/#. рс(*)/#. *-  $- усшѶшцф упшѶфппх(*)/#. #۔ $/*(#./  .#/(*)т(*)/#. ш ( $1" $/*(.. '(0"($*"( 2' $  рMr Adams’ visa expires in August 2021. *)Ҋ 3 0/$1 $- /*- руфѶцср ртчѶцчс    )/#  1 )/*! ..tion of employment, a KMP’s unvested performance rights will ordinarily lapseѶ#*2 1 -Ѷ/#$.$..0% //**-  *(($//    $.- /$*)2#$#(4  3 -$. $)$-0(./) ..0#. /#)  $.$'$/4Ѷ- /$- ( )/Ѷ- 0) )4*-.+ $'$-0(./) .ѵ 0 $/Ѷ$.&о*(+'$)    ) .*(  $-0(./) . .0--*0) $)" / -($)/$*) *! (+'*4( )/Ѷ /#  -*0+ (4 - ,0$-  $) $1$ 0'. /* )/ - $)/* )*)Ҋ*(+ /  #$- туѶчрц ттѶрфш --)" ( )/.2$/#/# -*0+ѵ# . --)" ( )/.(4- ,0$- +4( )//*/# $) $1$ 0'ѵ  ( - рфѶххр руѶшрх      *+' о0'/0-    #$- туѶчрц ттѶрфш  ( - рфѶххр руѶшрх    *($)/$*)   #$- Ҋ Ҋ  ( - Ҋ Ҋ р  -))0(! ..//#  ) *!/# !$))$'4 -Ѷ$)'0 $)".0+ -))0/$*)ѵ 

 /.#-*0+Ҟ$))$' +*-/рш сс  /.#-*0+Ҟ$))$' +*-/рш ст 54 Metcash Annual Report 2019 55 Directors’ report report (continued) continued Directors’ report continued *-/#For the year4 - ended ) 30 тп+-$'спр April 2019 ш For the year ended 30 April 2019                     Ҋ

хѵфѵ *)Ҋ3 0/$1 $- /*-- (0) -/$*) у ڿ ڿ ڿу ڿсѵш ڿуфѵш ڿффѵш ڿхцѵф ڿууѵт ڿффѵф ڿфпѵс ڿу фтѵ учѵт ڿуфѵс ڿушѵч '/* (*$/0((- 0+ .  - '/ - '/ ڦ ڦ ڦ - 4'$(($  ) ts Mr Adams’ Adams’ Mr ts

      -!*-()   -!*-()  0--4 рш упшѶфст спѶуфс усшѶшцф                     ڦ ڦ рч тчшѶфсп ршѶшчп упшѶфпп 

'!*0- рш рхуѶчцф рфѶххт рчпѶфтч */' */' рчуѶруш -$* !-*(у +/ ( -спрц/* рѶфрпѶтуц рѶфцшѶфцс рѶшппѶчух тѶхфуѶпхч рѶхпцѶчтш чѶтфрѶчсх рѶтчшѶушш рѶфптѶууп сѶтфрѶпуч сѶцттѶчцш

 рч рфцѶпсу руѶшрц рцрѶшур  рпѶпхсѶчхр - ))) рш руцѶтчр руѶппр рхрѶтчс  рч руѶтшх рѶтхч рфѶцху !*-/# +                   Ҋ Ҋ Ҋ Ҋ Ҋ Ҋ Ҋ Ҋ ڦ ڦ рш рхсѶсшх рфѶурч рццѶцру - 24  рч рупѶтхт ртѶттф рфтѶхшч тучѶрцс тучѶрцс фштѶфсц фштѶфсц

 *- ) рш рхрѶхчт рфѶтхп рццѶпут  җ.#Ҙ  җ.#Ҙ  рч рфтѶшчф руѶхсш рхчѶхру .# рш руцѶтчр руѶппр рхрѶтчс                        ڦ ڦ рч рупѶтхт ртѶттф рфтѶхшч      ффф рцт .  .  ''24җ- /$- Ҙ рш сцѶуцш сѶхрр тпѶпшп шпѶ шфѶпфш   Ҋ Ҋ сршѶупш рпчѶ фртѶршх ртхѶчрт срсѶцшу рцшѶртф рцтѶцшс цфрѶсру фусѶрух   рч рфцѶпсу руѶшрц рцрѶшур җшррѶхпсҘ

 +4( )/.Ҙ +4( )/.Ҙ

*/' рш рѶсспѶхрч шцѶфпх рѶтрчѶрсу җ.#- җ.#-  рч рѶрфсѶхцф шсѶучр рѶсуфѶрфх                    р у ڦ ڦ   '! - *1 '*.$. (*0)/ ))0(ѵ#рѶчппѶппп+ -ڦ// .(*$/- (0) - $3!#/$ reflects Mr Morrice’s total remuneration for the period from 1 May 2017 to 5 December 2017 as KMP. In  сѶцхх  туѶхфш фтѶррц ррѶшфп шхѶцчх срѶфпт amount disclosed above reflects Mr Cain’s total fixed remuneration from 1 2017May to 15 March 2018 as җтѶуучҘ 1 1  ртрѶрфш сруѶпхп җхсѶрхцҘ җртѶхфшҘ җтуѶцпхҘ сф (*(.тпфѶччсڦ!* -2 '/0 )ухцѶшсфڦ!*(*$/- (0) -спрчѵ#                   Ҋ Ҋ ڦ ڦ ршѶшчп ршѶшчп ршѶшчп ррѶштт спѶуфс спѶуфс спѶуфс хрѶтфх рцѶухр чшѶтту  !*-/# + -$* !-*(х ( -спрц/*тп+-$'спрчѵ  Ҋ 0+ 0+ -))0/$*) 0+ 0+ -))0/$*)   (+'*4( )/*)ру +/ (                    Ҋ Ҋ Ҋ Ҋ Ҋ Ҋ Ҋ Ҋ Ҋ Ҋ ڦ ڦ  . хчѶтус хчѶтус  ) !$/.  ) !$/.  ) ч)  !*-/# + -$* !-*(рх-#спрч/*ру +/ ( -спрчѵ  '*/$*)  '*/$*) Ҋ  .)*)                  цух  Ҋ Ѷ ڦ ڦ п   ѵ   ппп Ѷ фцфѶппп хппѶппп уппѶппп ушуѶррч чурѶфпп учхѶчфп чспѶппп ццхѶутч рѶхппѶппп тѶрцф тѶурчѶшпх                       ڦ ڦ рш   $3 $3 $3 хшڦ!*(*$/- (0) - $3!'/*/ чхчѶччш чутѶцрф цсшѶфуч чтпѶпсп цспѶхчш цссѶсух цсуѶштс     рѶчппѶппп уѶсусѶрфс рѶпхтѶртф рѶпцфѶфсу фѶртхѶфух тп+-$'спрш -$.&- (0) -/$*) - (0) - -/$*) (0) - -/$*) -  -  $1 Ҋ (*(.фстѶфхсڦ!* -2 '/0 )цсуѶштсڦ!*(*$/- (0) - $3$1!'/*/   Ҟ$))$' +*-/ Ҟ$))$'   ҝ- /$- ./тп+-$'спрч ҝ- /$-     спрцѵ   с р      //0/*-4 $.'*.0- . ) / $3 т     рч )'0 $)"#)" .$)))0') '*)". -1$ ' 1  )/$/' ( )/. ( )/$/'  1 ' -1$ .$)))0') '*)". )'0 $)"#)" - (.*(( )  (+'*4( )/*)у +/ ( -спрц) 2.++*$)/ .3 0/$1 $- /*-) -*0+*)ф ( -спрцѶ2  -*--$ 2.-*0+!-*(р4спрц/*ф (  -спрц)  . (+'*4( )/*)ст 0) спрчѵ# (*0)/ $.'*. *1 -$)- .$") .0+ -(-& /.) *)1 )$ ) !! рф-#спр/$1 )/.ѵ ( )/$/'  1 ' -1$ .$)))0') '*)". )'0 $)"#)" /*/'- (0) -/$*)!*-/# + -$* !-*(ф ( -спрц/*тп+-$'спрч. ѵ ) $/$*)Ѷ- (.-   /*/'!$3$1 -  ( -  ѵ ) $/$*)Ѷ-$)  $/$*)Ѷ-*--$ - рш   (. - *'' -.#''  $ '2 */'   ./тп+-$'спрч (+'*4 .  (. - *'' -.#''  $ '2  .- .$") *--$ $) */'  /.#-*0+ Directors’ report (continued)  ) - 4 *-/# цѵ цѵрѵ р   р с т у

 /.#-*0+Ҟ$))$' +*-/рш су 56 Metcash Annual Report 2019 57 Directors’ report report (continued) continued Directors’ report continued For*-/# the year4 - ended ) 30  Aprilтп+-$'спрш 2019  Directors’For the year ended 30 report April 2019 (continued) *-/# 4 - ) тп+-$'спрш

цѵсѵ + -!*-() -$"#/.#*' $)". /# - $.'*.0- .

') / -)/  ') /тп ') / )$..0 .#- .0) -.#- *+/$*).) + -!*-() -$"#/. (  р4спрч 0-$)"/# 4 - +-$'спрш - +*-/ /  //#  / *!/#$.- +*-/Ѷ/# - 2 - хѶфтсѶчхт+ -!*-() -$"#/.җхѶуштѶфшш//# - +*-/$)" / Ҙѵ# - 2 - )*.#- *+/$*).*)      $..0 //# - +*-/$)" / *-//#  / *!/#$.- +*-/ѵ ! -/* )*/ рч*!/# !$))$'.// ( )/.!*-!0-/# - /$'.- "- $)"  (. ухцѶчпу тхчѶпшч чтфѶшпс чтфѶшпс + -!*-() -$"#/.ѵ *'' - тцтѶрхс рчсѶфру фффѶхцх фффѶхцх -.#'' трчѶсчх рчсѶфру фппѶчпп фппѶчпп #- .$..0 .- .0'/*!*+/$*).) + -!*-() -$"#/.  $ '2 тпчѶцшс рхрѶпус ухшѶчту ухшѶчту *.#- .$)/# *(+)42 - $..0 /* (+'*4 .*- 3 0/$1 . 0-$)"*-.$) /#  ) *!/# !$))$'4 -$)- .+ /*!/#  */' рѶухчѶпуу чшуѶрхч сѶтхсѶсрс сѶтхсѶсрс 3 -$. *!*+/$*).*-+ -!*-() -$"#/.ѵ  "(-/) -.*!-)./о*0- !*-( -+)42#* -.*!/# *(+рф0"0./спршѵ !!$'$/(0/( )4*'+) ($"($($) -  #/*/4'(*/ %0.ڿ/шп''41 ./-/$/*+ / )$. 3++'  рцҊрш # # 1 ./ + -!*-() -$"#/.2$'' *)1 -/ /*.#- .) ''*/ /* *)рф0"0./спршѵ *)Ҋ 3 0/$1 $- /*-Ѷ)) - )))Ѷ$.!*-( -+-/) -*!-)./о*0)"ѵ# - - )**/# -*!!$ -.*!/# *(+)42#*- !*-( - цѵтѵ .#- #*' $)". +-/) -.*!-)./о*0)"ѵ

*)Ҋ0 $/. -1$ . ') / )(-& / /# - ') /тп ') / (  р4спрч /-   %0./( )/.р +-$'спрш - +*-/ /  # !*''*2$)")*)Ҋaudit services were provided by the entity’s auditor, 0./-'$ѵ# $- /*-.- ./$.!$ /#//# +-*1$.$*)*!       )*)Ҋ0 $/. -1$ .$.*(+/$' 2$/#/# " ) -'./) - *!$) + ) ) !*-0 $/*-.$(+*. 4/# ororations t ѵ#  )/0- ) .*+ *! #/4+ *!)*)Ҋ0 $/. -1$ +-*1$ ( )./#/0 $/*-$) + ) ) 2.)*/*(+-*($. ѵ $- /*-.      0--4 хуѶппф спѶппп Ҋ чуѶппф чуѶппф The auditor’s independence declaration for the year ended 30 +-$'спрш#. )-  $1 ) $.$)'0 *)+" 102ѵ 1$.*-4ѵ  ) )*(+'$3/$)"/*/ .- '$/. -1$ 0трчѶппп!*-/# +-*1$.$*)*!)*)Ҋڦ $1 0 /*-  -*- $1 Ҋ Ҋ Ҋ Ҋ Ҋ - .)  '!*0- чцѶчпу Ҋ Ҋ чцѶчпу чцѶчпу - ))) Ҋ срѶппп Ҋ срѶппп срѶппп 0. ,0 )/ 1 )/. 24 - упѶппп спѶппп Ҋ хпѶппп хпѶппп /# -/#)(// -. $.'*. $)/#$.- +*-/Ѷ/# - 2 - )* 1 )/./#/#1 *0-- !/ -/#  ) *!/# !$))$'4 -/#/2*0'  стѶпур ршѶхрп Ҋ усѶхфр усѶхфр  *- ) (/ -$''4!! //# - +*-/ - .0'/.*-2*0' - ,0$-  $.'*.0- $)/#$.- +*-/ѵ .# тцѶутр Ҋ Ҋ тцѶутр тцѶутр ''24җ- /$- Ҙ спхѶцчх Ҋ җспхѶцчхҘ Ҋ Ҋ *0) $)" .$"($ (рппѶпппҗ2# - -*0ڦ/. - ( #/*/ (0*-(  1#./( ) //.'$(($! #/($ (/-*+ -.$#/($ ($/(*./(0*) #       3 0/$1 .      ++'$' Ҙ0) -/# *+/$*)1$'' /*/# *(+)40) -S ororations nstruent ѵ# *(+)4$.) )/$/4/* *'' - рцѶфчс Ҋ Ҋ рцѶфчс рцѶфчс 2#$#/# ' "$.'/$1 $)./-0( )/++'$ .ѵ  $ '2 рфцѶцфс Ҋ Ҋ рфцѶцфс рфцѶцфс $") $)*- ) 2$/#- .*'0/$*)*!/# $- /*-.ѵ -.#'' фтѶшцч Ҋ Ҋ фтѶшцч фтѶшцч */' хччѶтцш чпѶхрп җспхѶцчхҘ фхсѶспт фхсѶспт р  !' /$)"#)" .$) *(+*.$/$*)!*''*2$)"- /$- ( )/*-- .$")/$*)ѵ

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рш рч рш рч   */ .   */ . )ڦ )ڦ )ڦ )ڦ           ' .- 1 )0    рсѶххпѵт рсѶуусѵс      *./*!.' .   җррѶтчсѵхҘ җррѶрффѵтҘ 0-- )/.. /.     -*..+-*!$/   рѶсццѵц рѶсчхѵш .#) .# ,0$1' )/.   русѵх рхрѵс      - -  $1' .) '*).  х рѶуштѵс рѶуцчѵр /# -$)*(   т шхѵп рпрѵс )1 )/*-$ .   ццшѵт цфуѵр $./-$0/$*)*./.   җуштѵшҘ җушфѵрҘ .. /.# ' !*-.'    ррѵу ррѵт  ($)$./-/$1 *./.   җффпѵшҘ җффуѵуҘ /# -!$))$'.. /.   пѵу пѵх #- *!+-*!$/*! ,0$/4Ҋ*0)/ $)1 ./( )/.  ц уѵц пѵх */'0-- )/.. /.   сѶусхѵш сѶупфѵт      $")$!$)/$/ (.  т җсфѵпҘ җтчпѵрҘ *)Ҋ0-- )/.. /.     $)) *./.  т җтсѵфҘ җтрѵпҘ - -  $1' .) '*).  х рхѵр спѵр -*!$/ҝҗ'*..Ҙ !*- $)*( /3   сцхѵр җцрѵшҘ ,0$/4Ҋ*0)/ $)1 ./( )/.  ц чцѵц ччѵт )*( /3 3+ ).   у җчрѵпҘ җцтѵфҘ -*+ -/4Ѷ+')/)  ,0$+( )/  ч ссфѵч срфѵф  /+-*!$/ҝҗ'*..Ҙ!*-/# 4 -   ршфѵр җруфѵуҘ  / ! -- /3.. /.  у ррхѵх рстѵх      )/)"$' .. /.) "** 2$''  ш цштѵф цшсѵт  /+-*!$/ҝҗ'*..Ҙ!*-/# 4 -$.//-$0/' /*ѷ     /# -!$))$'.. /.   Ҋ рпѵр ,0$/4#*' -.*!/# +- )/   ршсѵч җручѵсҘ */')*)Ҋ0-- )/.. /.   рѶстшѵц рѶсушѵш *)Ҋ*)/-*''$)"$)/ - ./.   сѵт сѵч         ршфѵр җруфѵуҘ     тѶхххѵх тѶхффѵс /# -*(+- # ).$1 $)*(           / (./#/(4 - '..$!$ .0. ,0 )/'4/*+-*!$/*-'*..   җрѵтҘ пѵш        /# -*(+- # ).$1 $)*( !*-/# 4 -Ѷ) /*!/3   җрѵтҘ пѵш 0-- )/'$$'$/$ .     */'*(+- # ).$1 $)*( ҝҗ'*..Ҙ!*-/# 4 -   рштѵч җрууѵфҘ - ) */# -+4' .   рѶшхцѵц рѶшптѵх      )/ - ./ -$)"*--*2$)".  рп рѵш рѵш */'*(+- # ).$1 $)*( ҝҗ'*..Ҙ!*-/# 4 -$.//-$0/' /*ѷ     -*1$.$*).  рр рстѵш рсхѵу ,0$/4#*' -.*!/# +- )/   ршрѵф җруцѵтҘ )*( /3+4'    ртѵх рфѵф *)Ҋ*)/-*''$)"$)/ - ./.   сѵт сѵч /# -!$))$''$$'$/$ .   хѵц цѵу    рштѵч җрууѵфҘ */'0-- )/'$$'$/$ .   сѶрртѵч сѶпфуѵч          *)Ҋ0-- )/'$$'$/$ .     -)$)".ҝҗ'*..Ҙ+ -.#- //-$0/' /*/# *- $)-4 ,0$/4#*' -.*!/# *(+)4ѷ   )/ - ./ -$)"*--*2$)".  рп рчтѵх рсцѵр  -*1$.$*).  рр ррфѵш ртцѵх .$ -)$)".ҝҗ'*..Ҙ+ -.#- җ )/.Ҙ  ср спѵч җрфѵсҘ /# -!$))$''$$'$/$ .   тѵс рѵф $'0/  -)$)".ҝҗ'*..Ҙ+ -.#- җ )/.Ҙ  ср спѵц җрфѵсҘ      */')*)Ҋ0-- )/'$$'$/$ .   тпсѵц сххѵс      The aove Stateent o orehensive noe should e read in onuntion ith the aoanin notesѵ        сѶурхѵф сѶтсрѵп The inanial results or ere retrosetivel restated uon the initial adotion o S Revenue ro ontrats ith ustoers    рѶсфпѵр рѶттуѵс Reer endi or a urther desrition o the restateent            *)/-$0/  ,0$/4  рс ффшѵс хппѵп  /$)  -)$)".   хчсѵр цсхѵс /# -- . -1 .  рс җпѵчҘ җпѵцҘ - )/$)/ - ./   рѶсупѵф рѶтсфѵф *)Ҋ*)/-*''$)"$)/ - ./.   шѵх чѵц      рѶсфпѵр рѶттуѵс

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60 Metcash Annual Report 2019 61  /.#-*0+Ҟ$))$' +*-/рш сч  /.#-*0+Ҟ$))$' +*-/рш сш  Statement of changes in equity Statement of cash flows //For// the year( ( ended)/*!#)" )/*!#)" 30 April 2019 .$) .$) ,0$/4 ,0$/4  ////For the year( ( ended)/*!.#!'*2. )/*!.#!'*2. 30 April 2019   *-/#*-/# 4 4- - ) ) тп+-$'спр тп+-$'спрш ш *-/#*-/# 4 4- - ) ) тп+-$'спр тп+-$'спрш ш     ршрш  рчрч  */*/ . .  )ڦ)ڦ  )ڦ)ڦ   Ҋ Ҋ(*(* .-  .- (2(2

*)/-$0/*)/-$0/    /$) /$)   /#/# - - *!/#*!/#  *)/-*''$)"*)/-*''$)" */'*/'          ,0$/4 ,0$/4  -)$)". -)$)".  - .- -1. -1. . +-+- )/ )/ $)/$)/ - ./.- ./.  ,0$/4 ,0$/4  .#!'*2.!-*(*+.#!'*2.!-*(*+ -/$)"/$1$/$ -/$)"/$1$/$ . .        )ڦ)ڦ  )ڦ)ڦ  )ڦ)ڦ  )ڦ)ڦ  )ڦ)ڦ  )ڦ)ڦ   $+/.!-*(0./*( $+/.!-*(0./*( -.  -.   рфѶрфѶчфсчфсѵу ѵу рфѶрфѶхцрхцрѵу ѵу               4(4( )/./*.0++'$ )/./*.0++'$ -.)  -.)  (+'*4 (+'*4 .  .   җрфѶҗрфѶфртфртѵрҘѵрҘ җрфѶҗрфѶтрптрпѵтҘѵтҘ ')')  /тп/тп+-$'+-$'спрчспрчѶ.+-Ѷ.+- 1$*0.'4- 1$*0.'4- +*-/ +*-/   хппѵпхппѵп  цчпѵхцчпѵх  җпѵцҘҗпѵцҘ  рѶтцшѵшрѶтцшѵш  чѵцчѵц  рѶтччѵхрѶтччѵх  )/ )/ - ./)  $1$ - ./)  $1$ ) .Ѷ) ) .Ѷ) / /   җсрҗсѵсрҘѵсҘ җршѵсҘҗршѵсҘ   %0./( %0./( )/-$.$)"!-*( )/-$.$)"!-*( *+/$*)*! *+/$*)*!рфрф              )*( )*( /3+$ Ѷ) /3+$ Ѷ) /*!/3- /*!/3- !0) . !0) .    җцтҗцѵстҘѵсҘ җхфѵхҘҗхфѵхҘ  RevenueRevenue ro ro ontrats ontrats ith ith ustoers ustoers  Ҋ Ҋ җфуҗфѵууҘѵуҘ Ҋ Ҋ җфуҗѵфууҘѵуҘ Ҋ Ҋ җфуҗѵфууҘѵуҘ  /.#" /.#" ) -/) -/  !-*( !-*(*+*+ -/$)"/$1$/$ -/$)"/$1$/$ . . ртрт суусуѵшуѵш сцхѵтсцхѵт  ')')  /р4спрч/р4спрчѶ- Ѷ.//- .//   хппѵпхппѵп  цсхѵсцсхѵс  җпѵцҘҗпѵцҘ  рѶтсфѵфрѶтсфѵф  чѵцчѵц  рѶттуѵсрѶттуѵс                        */'*(+-*/'*(+- # ).$1# ).$1 $)*( $)*( ҝҗ'*..Ҙ ҝҗ'*..Ҙ  Ҋ Ҋ ршсѵчршсѵч  җрѵтҗрѵҘ тҘ ршрѵршрѵф ф сѵтсѵт  рштршѵчт ѵч .#!'*2.!-*($)1.#!'*2.!-*($)1 ./$)"/$1 ./$)"/$1$/$ $/$. .                     -*-* .!-*(.' .!-*(.' *!0.$) *!0.$) .. ...)  .) .... /.  /.   цѵпцѵп  рпѵфрпѵф  -)./$*).2$/#*2)-)./$*).2$/#*2) -. -.             4(4( )/.!*-,0$.$/$*)*!0.$) )/.!*-,0$.$/$*)*!0.$) .... .... /.  /.   җфуҗфѵсуҘѵсҘ җтуҗѵтуцҘѵцҘ $1$ $1$ ) .+$  ) .+$ җ*/җ*/ фҘ фҘ Ҋ Ҋ җрсцѵуҘҗрсцѵуҘ  Ҋ Ҋ җрсцѵуҘҗрсцѵуҘ  җрѵуҗрѵҘ уҘ җрсчѵҗрсчѵчҘ чҘ 4(4( )/.!*-,0$.$/$*)*!0.$) )/.!*-,0$.$/$*)*!0.$) .. ... .   җррҗрѵчрҘѵчҘ җрфѵшҘҗрфѵшҘ  #-#- 04&) - 04&) - '/ '/ *./. *./.җ*/җ*/ рс Ҙрс Ҙ җупѵчҘҗупѵчҘ  җрпшѵфҘҗрпшѵфҘ  Ҋ Ҋ җрфпѵтҘҗрфпѵтҘ  Ҋ Ҋ җрфпѵтҘҗрфпѵтҘ  -*-* .!-*('*).- .!-*('*).- +$ 4*/# +$ 4*/# - )/$/$- )/$/$ . .   рхѵррхѵр  ртѵпртѵп  #-#- Ҋ. Ҋ. +4( +4( )/. )/.  Ҋ Ҋ Ҋ Ҋ рѵсрѵс  рѵсрѵс  Ҋ Ҋ рѵсрѵс  *). *).+-*1$ +-*1$  /** /**/# /#- )/$/$- )/$/$ . .   җфѵпҗфҘѵпҘ җрхѵцҘҗрхѵцҘ  ')')  /тп+-$'/тп+-$'спршспрш  ффшѵсффшѵс  хчсѵрхчсѵр  җпѵчҗпѵҘчҘ рѶсупѵрѶсупѵф ф шѵхшѵ х рѶсфпѵррѶсфпѵр   /.#0. /.#0. $)$)1 $)$)1 ./$)"/$1$/$ ./$)"/$1$/$ . .   җуцҗуѵшцҘѵшҘ җутҗѵучтҘѵчҘ                                     .#!'*2.!-*(!$))$)"/$1$/$.#!'*2.!-*(!$))$)"/$1$/$ . .       ')')  /р4спрц/р4спрцѶ.+-Ѷ.+- 1$*0.'4- 1$*0.'4- +*-/ +*-/   рѶцршѵтрѶцршѵт  җчцѵцҘҗчцѵцҘ  җтѵпҘҗтѵпҘ  рѶхсчѵхрѶхсчѵх  чѵччѵч  рѶхтцѵурѶхтцѵу  -*-* .!-*(ҝҗ .!-*(ҝҗ- +4(- +4( )/.*! )/.*!Ҙ*--*2$)".Ѷ)Ҙ*--*2$)".Ѷ) / /   хтѵхфт ѵф җхсѵфҘҗхсѵфҘ   %0./( %0./( )/-$.$)"!-*($)$/$' *+/$*)*! )/-$.$)"!-*($)$/$' *+/$*)*!рфрф             4(4( )/!*-*!! )/!*-*!!Ҋ(-&Ҋ(-& /04&*!.#- /04&*!.#- .Ѷ $)'0 $)".Ѷ$)'0 $)"*./.*./.  рсрс җрфпѵтҗрфпѵтҘ Ҙ Ҋ Ҋ RevenueRevenue ro ro ontrat ontrats iths ith ustoers ustoers  Ҋ Ҋ җфуѵсҘҗфуѵсҘ  Ҋ Ҋ җфуѵсҘҗфуѵсҘ  Ҋ Ҋ җфуѵсҘҗфуѵсҘ  4(4( )/*! $1$ )/*! $1$ ) ./**2) ) ./**2) -.*!/# -.*!/# +- +- )/ )/   җрсцѵуҘҗрсцѵуҘ  җрпсѵуҘҗрпсѵуҘ  ')')  /р4спр/р4спрцѶ-цѶ- .// .//   рѶцршѵтрѶцршѵт  җрурѵшҘҗрурѵшҘ  җтѵпҘҗтѵпҘ  рѶфцуѵурѶфцуѵу  чѵччѵч  рѶфчтѵсрѶфчтѵс  4(4( )/*! $1$ )/*! $1$ ) ./*)*) ) ./*)*)Ҋ*)/-*''$)"$)/Ҋ*)/-*''$)"$)/ - ./.- ./.    җрѵуҘҗрѵуҘ җсѵшҘҗсѵшҘ                 /.#0. /.#0. $)!$))$)"/$1$/$ $)!$))$)"/$1$/$ . .   җсрҗсрфѵхфҘѵхҘ җрхцѵчҘҗрхцѵчҘ  */'*(+-*/'*(+- # ).$1# ).$1 $)*( $)*( ҝҗ'*..Ҙ ҝҗ'*..ҘѶ) Ѷ)/*!/3Ѷ /*!/3Ѷ Ҋ Ҋ җручѵсҘҗручѵсҘ  пѵшпѵш  җруцѵтҘҗруцѵтҘ  сѵчсѵч  җрууѵфҘҗрууѵфҘ          - .//- .//    /$)- /$)- . .ҝҗ ҝҗ - -. .Ҙ$).#) .# Ҙ$).#) .# ,0$1' ,0$1' )/. )/.    җрчѵҗрчѵхҘхҘ хуѵцхуѵц                *+ *+ )$)".#) .# )$)".#) .# ,0$1' ,0$1' )/. )/.    рхрѵсрхрѵс  шхѵфшхѵф  -)./$*).2$/#*2)-)./$*).2$/#*2) -. -.             .#) .#.#) .# ,0$1' ,0$1' )/.//# )/.//#  ) *!/# ) *!/# 4 4- -   русруѵхсѵх рхрѵсрхрѵс  $1$ $1$ ) .+$  ) .+$ җ*/җ*/ фҘ фҘ Ҋ Ҋ җрпсҗрпсѵуҘѵуҘ Ҋ Ҋ җрпсѵуҘҗрпсѵуҘ  җсѵшҘҗсѵшҘ  җрпфѵтҘҗрпфѵтҘ  +$/'-+$/'- 0/$*) 0/$*)  җрѶрршѵтҘҗрѶрршѵтҘ  рѶрршѵтрѶрршѵт  Ҋ Ҋ Ҋ Ҋ Ҋ Ҋ Ҋ Ҋ TheThe aove aove Stateent Stateent o asho ash los los should should e eread read in onuntionin onuntion ith ith the the aoanin aoanin notes notes #-#- Ҋ. Ҋ. +4( +4( )/. )/.  Ҋ Ҋ Ҋ Ҋ сѵтсѵт  сѵтсѵт  Ҋ Ҋ сѵтсѵт  -).!-).! -.  -. Ҋ Ҋ пѵшпѵш  җпѵшҘҗпѵшҘ  Ҋ Ҋ Ҋ Ҋ Ҋ Ҋ TheThe Statee Stateent nto asho ash los los or or as as ret retrosetivelrosetivel restated restated uon uon the the initial initial adotion adotion o So S Revenue Revenue ro ro ontrats ontrats ith ith ustoersustoers Reer Reer endi endi or or a urther a urther desrition desrition o theo the restateent restateent ')')  /тп+-$'/тп+-$'спрчѶ-спрчѶ- .// .//   хппѵпхппѵп  цсццсцѵц ѵц җпѵцҘҗпѵцҘ  рѶтсцрѶтсцѵп ѵп чѵцчѵц  рѶттфрѶттфѵц ѵц  %0./( %0./( )/-$.$)"!-*($)$/$' *+/$ )/-$.$)"!-*($)$/$' *+/$*)*!ш*)*!ш               inanialinanial nstruents nstruents  Ҋ Ҋ җрѵфҘҗрѵфҘ  Ҋ Ҋ җрѵфҘҗрѵфҘ  Ҋ Ҋ җрѵфҘҗрѵфҘ    ')')  /р4спрчѶ-/р4спрчѶ- .// .//   хппѵпхппѵп  цсхѵсцсхѵс  җпѵцҘҗпѵцҘ  рѶтсфѵфрѶтсфѵф  чѵцчѵц  рѶттуѵсрѶттуѵс    TheThe aove aove Stateent Stateent o haneso hanes in uit in uit should should e eread read in onuntion in onuntion ith ith the the aoanin aoanin notes notesѵ ѵ TheThe Statee Stateent ont ohanes hanes in uitin uit or or as as retrosetivel retrosetivel restated restated uon uon the the initial initial adotion adotion o So S Revenue Revenue ro ro ontrats ontrats ithith ustoers ustoers hile hile S S inanial inanial nstruents nstruents as as adoted adoted ithout ithout restatin restatin oaratives oaratives Reer Reer endi endi or ora urthera urther desritiondesrition o tohe t herestateent restateent urinurin etash etash iited iited the the arent arent oan oan o theo the rou rou undertoo undertoo a aital a aital redution redution to redueto redue its itsshare share aital aital illionillion to to illion illion in aordanein aordane ith ith setion setion o theo the ororations ororations t t The The redution redution as as alloated alloated in ullin ull to tothe the auulatedauulated losses losses aount aount in thein the arent arent oan oan ith ith no noiat iat on onthe the net net assets assets o eithero either the the arent arent oan oan or theor the rou rou n n onsolidationonsolidation the the share share aital aital o theo the rou rou has has een een adusted adusted illion illion to reletto relet the the rev revisedised share share aital aital o theo the arent arent oanoan Reer Reer note note or orurther urther inoration inoration on onthe the standalone standalone inanial inanial stateents stateents o theo the arent arent oan oan

62 /.#-*0+Metcash /.#-*0+ AnnualҞ$))$'Ҟ$))$' Report +*-/2019 +*-/ршрш тптп 63  /.#-*0+ /.#-*0+Ҟ$))$'Ҟ$))$' +*-/ +*-/ршрш тртр Notes*/ ./*/# to the!$))$'.// financial ( )/.statements */Notes*/ ./*/# ./*/# to the!$))$'.// !$))$'.// financial ( ( )/. statements)/.җ*)/$)0җ*)/$)0 Ҙ continued Ҙ  For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш *-/#For*-/# the year4 4- ended -) ) 30 тп+-$'спр April тп+-$'спр 2019 ш ш   рѵ *-+*-/ $)!*-(/$*) тѵ тѵ 1 1)0 )0 )  )  3+ 3+ ). ).. .

# !$))$'.// ( )/.*! /.# $($/ җ/# ‘*(+)4’Ҙ) $/.*)/-*''  )/$/$ .җ/*" /# -/# ‘-*0+’Ҙ!*-/# 4 - ) тп ршрш  рчр ч   )ڦ)ڦ )ڦ)ڦ 0) спршѵ /*-.*)су - .*'0/$*)*!/# $- 2$/#) *-!*-$..0 $) 0/#*-$. спрш2 -'$-+  /.# $($/ $.!*-+-*!$/*(+)4'$($/ 4*- $)-4.#- .$)*-+*-/ )  *($$' $)0./-'$2#*. .#- .- +0'$'4       /- *)/# 0./-'$) 0-$/$ .3#)" ѵ# )/0- *!/# *+ -/$*).) +-$)$+'/$1$/$ .*!/# -*0+-  .-$ $)/#  җ$Ҙ җ$Ҙ/#/# -$)*( -$)*(       Directors’ Report. The registered office of the Company is р#*(. *'/-$1 Ѷ,0-$ -&срртѵ . .$) *($)*( Ҋ- )/Ҋ- )/ цпѵццпѵц  цсѵпцсѵп  . .$)*( $)*( Ҋ*0/"*$)".- Ҋ*0/"*$)".- *1 *1 -$ .-$ . рчѵчрчѵч  спѵсспѵс  # !$))$'+*.$/$*)) - .0'/.*!/# -*0+!*-рч2 - - /-*.+ /$1 '4- .// 0+*)/# $)$/$' *+/$*)*!рфRevenue )/ )/- ./ - $)*(./$)*(   тѵхтѵх уѵхуѵх ro ontrats ith ustoers 2#$' шinanial nstruents 2. *+/ 2$/#*0/- .//$)"*(+-/$1 .ѵ ! -++ ) $3!*-  /"$)!-*( $.+*.'*! /"$)!-*( $.+*.'*!0.$)0.$) ..) ..) +')/) +')/)  ,0$+( ,0$+( )/ )/ сѵшсѵш рѵхрѵх !0-/# - .-$+/$*)*!/# - .// ( )/ѵ  /"$)!-*( $.+*.'*!+-*+ /"$)!-*( $.+*.'*!+-*+ -/4 -/4 Ҋ Ҋ сѵчсѵч # .$.*!+- +-/$*)!*-/# . !$))$'.// ( )/.) /# .$")$!$)/*0)/$)"+*'$$ .++'$ - .0((-$. $)++ ) $3   шхѵпшхѵп  рпрѵсрпрѵс  ѵ        җ$$Ҙҗ$$Ҙ+ +-/$)"' -/$)"' . . 3+  3+). ).. .     -*+-*+ -/4- -/4- )/ –)/./*-–./*- . . чуѵцчуѵц  чшѵфчшѵф  сѵ  "( )/$)!*-(/$*) -*+-*+ -/4- -/4- )/ Ҋ)/2-Ҋ2- #*0. #*0. ) */# ) */# -+-*+ -+-*+ -/$ -/$. . чрѵфчрѵ ф чрѵцчрѵц  -*+-*+ -/4*0/"*$)". -/4*0/"*$)".  фшѵффшѵ ф хпѵпхпѵп  # -*0+#.$ )/$!$ $/.*+ -/$)". "( )/.. *)/# $)/ -)'- +*-/./#/- - 1$ 2 ) 0. 4/# #$ !3 0/$1  ,0$+(,0$+( )/) */# )/) */# -' .-' .. . срѵтсрѵт  ссѵцссѵц  !!$ - җ/#  #$ ! *+ -/$)" $.$*) (& -Ҙ $) .. ..$)" + -!*-()  )  $) / -($)$)" /#  ''*/$*) *! - .*0- .ѵ $.- /    суцѵпсуцѵп  сфтѵшсфтѵш  !$))$'$)!*-(/$*)*0//# . *+ -/$)". "( )/.$.- +*-/ *)/' ./(*)/#'4.$.ѵ       # $)!*-(/$*)- +*-/ /*/# $.""- "/ . *)+-* 0//4+ .) /# *1 -'' *)*($#-/ -$./$.*!$) 0./-$ .$) җ$$$Ҙҗ$$$Ҙ(+'*4(+'*4  ) !$/) !$/3+ 3+). ).. .     2#$#/# -*0+*+ -/ .ѵThe Group’s reportable segments a- /# - !*- .!*''*2.ѷ '-$'-$ .) 2" .) 2" . . ффсѵшффсѵш  ффшѵпффшѵп  0+0+ -))0/$*) -))0/$*) 3+ 3+). ).  урѵуурѵу  упѵпупѵп  • ** /$1$/$ .*(+-$. /#  $./-$0/$*)*!-)" *!+-* 0/.) . -1$ ./*$) + ) )/.0+ -(-& /) *)1 )$ ) - /$' #-#- Ҋ. Ҋ. +4( +4( )/. )/. рѵсрѵс сѵтсѵт *0/' /.ѵ /#/# - (+'*4- (+'*4  ) !$/) !$/3+ 3+). ).. . ууѵсуу ѵс уфѵхуфѵх  • $,0*-/$1$/$ .*(+-$. /#  $./-$0/$*)*!'$,0*-+-* 0/./*$) + ) )/- /$'*0/' /.) #*/ '.ѵ   хтшѵхтшѵц ц хухѵшхухѵш  • - 2- /$1$/$ .*(+-$. /#  $./-$0/$*)*!#- 2- +-* 0/./*$) + ) )/- /$'*0/' /.) /# *+ -/$*)*!*(+)4 *2) - /$'./*- .ѵ        җ$1Ҙҗ$1Ҙ +- +-$/$*)) (*-/$./$*) $/$*)) (*-/$./$*)       ,0$+( ,0$+( )/ )/ сшѵтсшѵт сшѵцсш ѵц ))/ -/4Ѷ+' ))//$*)*!+-*+ -/4Ѷ+'$ /$*)*!+-*+$Ѷ  +- +- 0( 1 -!*ڿ)ф/- +- . )/' ../#/# )' /$*).$) 2.*+ -ѵ# -*0+#$'-/.0(4$'/(($)* -+. /- +*0+*- # -   ссѵуссѵу  спѵфспѵ ф/$*)*!.*!/2-(*-/$./$*)*!.*!/2Ѿ.- 1 )0 ѵ (*-/$.+0*- #/!*ڿ)рп/ -/# #- +- . )/."-0./*( -2#$ .$)"' 1* .)*/# 0+ѵ# -*0+*- #/!*./ .. (./'0. -  (*-/$./$*)*!*/#(*-/$./$*)*!*/# -$)/) -$)/)"$'"$' .. .. /. /. уѵцуѵц хѵухѵу ' . /2 ). "( )/.- . *).$($'-/ -(.) *) $/$*)./*/#*. $)+' 2$/#/#$- +-/40./*( -.ѵ   фхѵуфхѵу фхѵхфхѵх             "( )/- .0'/. җ1Ҙ җ1Ҙ-*1$.$*).!*-$(+$-(-*1$.$*).!*-$(+$-( )/Ѷ) )/Ѷ) /*!- /*!- 1 -.'.1 -.'.  - - - - $1' $1' .) '*). .) '*).  фѵуфѵу хѵцхѵц   "( )/- 1 )0   "( )/+-*!$/ !*- /3  )1 )1)/*-$ )/*-$ . . ртѵпртѵп  рфѵррфѵр  рш рч рш рч .. ../.# /.# ' !*-.' ' !*-.'   пѵрпѵр рѵцрѵц $)1 ./( ./( )/. )/. рѵцрѵц Ҋ Ҋ $)1 *0)/*0)/Ҋ4Ҋ/$4,0/$0, )ڦ )ڦ )ڦ )ڦ       -*+-*+ -/4Ѷ+')/)  -/4Ѷ+')/)  ,0$+( ,0$+( )/ )/ җпѵфҘҗпѵфҘ  тѵутѵу **  цѶчтхѵу цѶчтрѵч рчсѵц рччѵт )/ )/)"$')"$' ..  ../. /. пѵшпѵш пѵрпѵр $,0*- тѶхфчѵч тѶухцѵр црѵс цпѵт -*+-*+ -/4' -/4' . .) *) ) *) -*0.*)/-/.+-*1$.$*). -*0.*)/-/.+-*1$.$*).  җртѵҗртҘт ѵтҘ җчѵпҘҗчѵпҘ  - 2-  рѶрхфѵр рѶрутѵт чрѵс хшѵт   цѵтцѵт ршѵпрш ѵп  "( )/- .0'/. рсѶххпѵт рсѶуусѵс ттфѵр тсцѵш       *-+*-/ җҘ   җфѵрҘ хѵц җ1$Ҙҗ1$Ҙ$))$)) *./. *./.      Group earnings before interest and tax (‘EBIT’)  ттпѵп ттуѵх )/ )/- ./ - ./3+ 3+). ).  рцѵурцѵу  руѵчруѵч  -)./$*)!-)./$*)! .$)- .$)- '/$*)/*0./*( '/$*)/*0./*( -#-" -#-" - .җ)*/ - .җ)*/ хҘ  хҘ цѵуцѵу чѵучѵу  /!$)) *./.   җсчѵшҘ җсхѵуҘ  ! -- ! *--*2$)"*-- *--*2$)"*./../. рѵсрѵс пѵшпѵш $")$!$)/$/ (.җ)*/ тҘ   җсфѵпҘ җтчпѵрҘ $))$)) *./.!-*( $.*0)/$)"*!+-*1$.$*). *./.!-*( $.*0)/$)"*!+-*1$.$*).  хѵфхѵф хѵшхѵш  /+-*!$/ҝҗ'*..Ҙ !*- /3 сцхѵр җцрѵшҘ   тсѵфтсѵф  трѵптрѵп           Ѷ 0)/$)"2**  $).//#"+-*1$.$*)'*!0 /*/# - 1 -. -$. хѵц($''$*)$)/# +-$*-4ڦ!*/'/ - .0Ҙ # +*.$/$1 *-+*-җ #$'$).0-) '$(2#$#2.. //' $)рчѵ



64 Metcash /.#-*0+ AnnualҞ$))$' Report 2019 +*-/рш тс  /.#-*0+ /.#-*0+Ҟ$))$'Ҟ$))$' +*-/ +*-/рш рш тт тт 65 Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш  

тѵ  1 )0 )  3+ ). .җ*)/$)0 Ҙ уѵ )*( /3

рш рч  рш рч  )ڦ )ڦ )ڦ )ڦ       җ1$$Ҙ $")$!$)/$/ (.   %*-*(+*) )/.*!$)*( /3 3+ ).    *0/#0./-'$ $./-$0/$*) )/- җҘ*./. фѵх Ҋ 0-- )/$)*( /3#-"  цтѵп чцѵх *-&$)"(-/ -- ./-0/0-$)"*./. ршѵу ррѵп  %0./( )/.$)- .+ /*!$)*( /3*!+- 1$*0.4 -. җрѵпҘ җтѵрҘ  ,0$.$/$*)) $)/ "-/$*)*./. Ҋ рцѵп  ! -- $)*( /3- '/$)"/**-$"$)/$*)) - 1 -.'*!/ (+*--4 $!! - ) . шѵп җррѵпҘ (+$-( )/*!.. /. Ҋ тфсѵр */'.$")$!$)/$/ (. сфѵп тчпѵр */'$)*( /3 3+ ).  чрѵп цтѵф )*( /3 ) !$///-$0/' /*.$")$!$)/$/ (. җцѵфҘ җрфѵпҘ  */'.$")$!$)/$/ (.!/ -/3 рцѵф тхфѵр  *)$'$/$*)*!$)*( /3 3+ ). !-*(*)/$)0$)"*+ -/$*).   *0)/$)"+-*!$/ҝҗ'*..Ҙ !*- $)*( /3 сцхѵр җцрѵшҘ *0/#0./-'$ $./-$0/$*) )/- җҘ*./. At the Group’s statutory income tax rate of 30% (FY18: 30%) чсѵч җсрѵфҘ 0-$)"/# 4 -Ѷ/# -*0+ )/ - $)/*)"- ( )/!*-/# *)./-0/$*)*!) 2 $./-$0/$*) )/- $)*0/#0./-'$Ѷ2#$#$. (+$-( )/*!"** 2$'') */# -.. /. Ҋ шшѵр *(  рѵр Ҋ' $).. ..-Ѷ /# - 0-$)"/# 4 *./.).$/$*)фѵх($''$*)җрчѷ)$'Ҙ*!/-ڦ 0--спспѵ# -*0+$)!*!'# (* . #/($ / '+)* */ / 3+ 2#$#- ..*$/ 2$/#/# +-*"-() - )*)Ҋ-*0/$) $))/0- Ѷ.0#.' . /$') (& "** +-*1$.$*).Ѷ- 0) )$ .)  /# -(*0)/.)*/.. ..' ҝ''*2' !*-$)*( /3+0-+*. . җрѵшҘ җрѵпҘ +-*% /()" ( )/*./.ѵ# . *./.- . +-/ '4 $.'*. 2$/#$).$")$!$)/$/ (./* )'  // -0) -./) $)"*!/#   %0./( )/.$)- .+ /*!$)*( /3*!+- 1$*0.4 -. җрѵпҘ җтѵрҘ Group’s results. )*( /3 3+ ).  чрѵп цтѵф *-&$)"(-/ -- ./-0/0-$)"*./.      ./ ..3/ ! -- ррѵп($''$*)Ҙ *(+*) )/.*!ڦршѵу($''$*)җрчѷڦ 0---Ѷ/# -*0+$) 0-- )/4 (ѵ0-$)"/#-/ --*"--*!/# *-&$)"( '4./# !$)рш2 *!$(+' ( )//$*)*./.$)- '/$*)/*/# +-*"-(ѵ# . *./.- . +-/ '4 $.'*. 2$/#$).$")$!$)/$/ (./* )'  // - -*1$.$*). рсхѵц рфпѵп understanding of the Group’s results. Implementation costs are directly associated with the program and are nonҊ-*0/$) $))/0- Ѷ )0/$'$. /3'*.. . рѵр рѵх !*(*$''$)чѵфڦ '0*./.$)рш$)-/ -1$.*-! .ѵ*-&$)"(  )*./. '*.0-*./.Ѷ/0-$)"Ѷ- ./-0. $( (0 -.#0.  ' -/  +- $/$*)!*-*0)/$)"+0-+*. . хѵр хѵп *./.$)0-- 4/#  - 2- +$''-Ѷ+-$)$+''4- '/ /*/# '*.0- *!.ѵ /# - шѵф рѵч  ,0$.$/$*)) $)/ "-/$*)*./. )/)"$' .. /. җсхѵчҘ җтфѵчҘ 0.$) ..$)/*  ррхѵх рстѵхҘ  - җ2 -  ) -*( $( /$*)*!/*/# $)/ "- /*./.- 'рцѵп($''$*)*!ڦ 0--рчѶ/# -*0+$)"(0-$ /#  3$./$)" - 2- 0.$) ..ѵ.)*/ *1 Ѷ/#  - 2- +$''-*)/$)0 ./* '$1 -$)/ "-/$*)Ҋ- '/ .1$)".) /# *./.    ..*$/ 2$/#$(+' ( )/$)"/# . #1  )$)'0 $)*-&$)"(-/ -- ./-0/0-$)"*./.$)ршѵ *1 ( )/.$) ! -- /3.. /.   (+$-( )/*!.. /. + )$)"')  рстѵх ррчѵт )рчѶ/# '*..*!'*)"Ҋ/ -(*(($/( )/2$/#-& .0+ -(-& /."-*0+$)*0/#0./-'$) /# $)/ ).$!4$)" *)*($)  җ#-" Ҙҝ- $/ /*) /+-*!$/!*-/# 4 - җшѵпҘ ррѵп (*$''$)тфсѵрڦ!* .( $-( )/ 3+)$(+*")$/$*)*! $)/# - Ѷ- .0'/'$-'4$) ./ -)0./-0'-/$Ѷ+/( )(*1$-(  $1/$/ +)* - $/ ҝҗ#-" Ҙ/**/# -*(+- # ).$1 $)*( !*-/# 4 - пѵт җпѵтҘ "$).//# --4$)"1'0 *!.. /.$)/#  ** . "( )/ѵ# $(+$-( )/ 3+ ). +- *($))/'4- '/ /*"** 2$'') */# - $)/)"$' .. /.Ѷ0/'.*$)'0  -/$)- .$ 0'/)"$' .. /.) ' .  3+*.0- .ѵ 3 ) !$/..*$/ 2$/#.#- $..0 *./. пѵс Ҋ  %0./( )/.- '/ /*0.$) ..*($)/$*). рѵф җфѵуҘ  '*.$)"')  ррхѵх рстѵх   /.($"/ .!!*-*! !$)$/ '4 ' $)$'1 -/руѵп($''$*)Ҙ/#ڦртѵу($''$*)җрчѷڦ!*. ..*''/$+..*-" .$("* -(0.0+#*- # !0/0- +$/'"$).ѵ

3*).*'$ /$*) 0'4сппфѵ р)*-!/ !! #/$2+0*-" / $'*.(*3/ )-*!. $-$ $.0./( $. -($'-/.0 (2*ڿрпп./$ ( /$)$ #./   /.# $($/ $./# #   )/$/4*!/# /3*).*'$ / "-*0+ѵ ( -.*!/# "-*0+#1  )/ - $)/*/3.#-$)"--)" ( )/ $)*- -/*''*/ $)*( /3 3+ ). /*/# 2#*''4*2) .0.$ $-$ .*)(* $!$ ./) '*) .$.ѵ ) $/$*)Ѷ/# "- ( )/ +-*1$ .!*-/# ''*/$*)*!$)*( /3'$$'$/$ . /2 )/#  )/$/$ ..#*0' /# #   )/$/4 !0'/*)$/./3+4( )/*'$"/$*).ѵ

3 !! /*0)/$)"4( ( -.*!/# /3*).*'$ / "-*0+  ( -.*!/# /3*).*'$ / "-*0+#1  )/ - $)/*/3!0) $)""- ( )/ѵ# /3!0) $)""- ( )/+-*1$ .!*-/#  ''*/$*)*!0-- )//3 ./*( ( -.*!/# /3*).*'$ / "-*0+$)*- ) 2$/#"-*0+''*/$*)( /#* 0.$)"(* $!$  ./) '*) /3'0'/$*)../# .$.!*-''*/$*)ѵ ! -- /3 .*!( ( -.*!/# /3*).*'$ / "-*0+- ( .0- )  - *")$. $)*- ) 2$/#/# +-$)$+' .*!ррсnoe Taes ) -/# /3!0) $)""- ( )/Ѷ!0) $)"$.. 0+*)/# (*0)/.''*/ ) - *")$. 4/# ( ( - )/$/$ .ѵ*- $)"'4Ѷ !0) $)"- .0'/.$))$)- . ҝ - . in the subsidiaries’ intercompany accounts with the tax consolidated group head company,  /.# $($/ ѵ   

66 Metcash /.#-*0+ AnnualҞ$))$' Report 2019 +*-/рш ту  /.#-*0+Ҟ$))$' +*-/рш тф 67 Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( statements )/.җ*)/$)0 continued Ҙ For the year ended 30 April 2019 For the year ended 30 April 2019 *-/# 4 - ) тп+-$'спрш *-/# 4 - ) тп+-$'спрш   фѵ $1$ ) . хѵ - -  $1' .) '*).җ*)/$)0 Ҙ рш рч  ..*'/( )-$+)$-*! (2*''($./( ) 1* )ڦ )ڦ    рш рч  )ڦ )ڦ   - 4 #/"(0-$ . -#.-4($ -*(* $+. ( $1$ $)'!0''4!-)&  $1$ ) !*-рчѷцѵпҗрцѷуѵфҘ хчѵт утѵш     )/ -$(!0''4!-)&  $1$ ) !*-ршѷхѵфҗрчѷхѵпҘ фшѵр фчѵф + )$)"')   хчѵр цуѵц  рсцѵу рпсѵу #-" .) 3+ ).  0-$)"/# 4 -  фѵу шѵу    *0)/.2-$// )*!!.)*)Ҋ- *1 -'   җтѵчҘ җрхѵпҘ $1$ ) . / -($) җ)*/- *")$. .'$$'$/4./тп+-$'Ҙ    '/ /*,0$.$/$*).)  $.+*.'.*!0.$) .. .) */# -(*1 ( )/.  җпѵцҘ җсѵсҘ $)'!0''4!-)&  $1$ ) !*-ршѷцѵпҗрчѷцѵпҘ хтѵц хчѵт '*.$)"')   хшѵп хфѵш    %0./( )/-$.$)"!-*($)$/$' *+/$*)*!шҗ++ ) $3Ҙ  Ҋ сѵс )су 0) спршѶ/# *-  / -($) /*+4!0''4!-)& рш!$)' $1$ ) *!цѵп )/.+ -.#- Ѷ.*0- !-*(/# +-*!$/- . -1   %0./ '*.$)"')   хшѵп хчѵр ./'$.# 4 /.# $($/ җ- )/*(+)4ҘѶ2$/#- *-  / *!рп 0'4спрш) +4' $).#*)ц0"0./спршѵ#  $1$ )  $)1 ./( )/')- ($)..0.+ ) 2$/# !! /!-*(сх 0) спрцѵ  $"#/ 1 -" $)/ - ./ (*$''$)тѵрڦ/тп+-$'спршѶ0.$) ..0)$/ѵ.4-44( )// -(.1- + )-$)" Ҋ$)/ - ./(*( -. '$1  -- #/* ( -   1). #0./*( - '* фпѵч ($''$*)Ҙ *!ڦтшѵт ($''$*) җрчѷڦ  ( "($-  /. - /($-  )*)Ҋ ).0./*( - '* уѵу ($''$*)Ҙ *!ڦ җрчѷ  /$)$ #./ !* ('/$ -"($&(- рш рч Ҙѵڿҗрчѷчѵсڿчѵх!* /-/. - /($'0(( "- 1 /#"$ 2  )ڦ )ڦ    /0-$/4*!/- -  $1' . .)- / 1#ڿҘѶцѵуڿ4.җрчѷчхѵс тп($#/$2 '// . */ -$0, --* 0 - #/$  -. '1$  - -/!*ڿҘ рцуѵр сррѵс /тп+-$'спршѶшсѵтڿҗрчѷтпڿтп/- 4'$(($! #/!* (  #//. ('/(0*"($&(- Ҙѵڿ4.җрчѷпѵц хп(#/- / -".)- / 1#ڿпѵт )Ҙڿ4.җрчѷртѵр $)"!-*(тп/*хп ррѵт суѵр 3/ )  / "($/-*+ - #// '43+/ )*($!*/( )4+ #/)*-! .$-''2$/#/./$ -"($&(- -)&$)"- $/.*) $1$ ) . / -($) 0/)*/ $./-$0/ /*.#- #*' -. 0-$)"/# 4 - җсцѵсҘ җсшѵтҘ  рфчѵс спхѵп - -  $1' .. 0-$/$./$*)!$'$/4 /. - /($ '/) ,0$ )/#"- Ѷ2#$$'$/4$)+'/$*)!0-$/$. /. рппѵп($''$*)ڦ / Ѷ/# -*0+#  .# /)'рч #//  $) -/$)/- -  $1' ./*.+ $'+0-+*. /-0./()" 4(%*-0./-'$))&ѵ# !$'$/42. $.*)/$)0  0-$)"/#  хѵ - -  $1' .) '*). 0-- )/!$))$'4 -ѵ*- $)"'4Ѷ/# --4$)"1'0 *!/- -  $1' .. 0-$/$. 0) -/#$.--)" ( )//рш$.)$'җрчѷ цхшѵу($''$*)Ҙѵڦ рш рч  )ڦ )ڦ    0./*( -#-" - ."- ( )/ 0-- )/   ) -)"- ( )/ /2 ) /.#) ( -$)3+- ..җ( 3ҘѶ '$"$' - /$'0./*( -.(& /- +0-#. .!-*( /.# - -  $1' .Ҋ)*)Ҋ. 0-$/$.   рѶрхшѵф тфуѵр using their Amex customer charge cards. Metcash’s trade receivable is settled in full by Amex. Amex subsequently collects the (*0)/.*0/./) $)"*)/# 0./*( -#-" - . $- /'4!-*(/# - /$' -.ѵ - -  $1' .Ҋ. 0-$/$.   Ҋ цхшѵу ''*2) !*-$(+$-( )/'*..  җхтѵуҘ җфсѵфҘ ) -/# "- ( )/Ѷ$)/#  1 )/0./*( - !0'/.*)/# $-+4( )/*'$"/$*)/*( 3Ѷ  /.#(0./- ,0$- /#  /-  - -  $1' .  рѶрпхѵр рѶпцрѵп -  $1' !-*(( 3ѵ# (3$(0((*0)/+4' 4 /.#/*( 3$.'$($/ /*/# /0'! 1'0 *!/# *0/./) $)"/-  0./*( -#-" - ."- ( )/җҘ  сстѵц сцуѵп -  $1' )  * .)*/$)'0 )4$)/ - ./*-)4*/# -*./.$)0-- 4( 3ѵ) - ,0$- Ѷ /.#2$''. &/**'' //#  /- -  $1' !-*(/# - /$'0./*( -/#-*0"#$/.)*-('- $/+-* .. .ѵ /# --  $1' .) +- +4( )/.  русѵц рртѵф - ) */# --  $1' .  рѶуцсѵф рѶуфчѵф # "- ( )/*+ -/ .*)) 1 -"- ).$.0)/$' $/# - /.#*-( 3+-*1$ .рс(*)/#)*/$ *!) ''/$*)ѵ#  -'$ ./     / *)2#$#/# "- ( )/*0'  ) '' $.х/* -спсрѵ 0./*( -'*).  схѵт сцѵр #  0./*( - #-"  - . "- ( )/ $. +- . )/  . +-/ *! 0-- )/ /-  -  $1' . )   (/#$)" 0-- )/ '$$'$/4 *! .сцу.0 million) is included within trade and other payables, with no impact to the Group’s net assetsڦсстѵц($''$*)җрчѷڦ җфѵхҘ җцѵфҘ  ..*'/( )-$+)$-*! (2*'' 0./*( -'*).  спѵц ршѵх */'/- -  $1' .) '*).–0-- )/  рѶуштѵс рѶуцчѵр 0./*( -'*). 0-$/4     # -*0+#. ../*. 0-$/4"$)./(*./0./*( -'*).$)/#  1 )/*! !0'/ѵ 0-$/4# ' (4$)'0 )&) + -.*)' *)Ҋ0-- )/    "0-)/ .Ѷ!$3 ) !'*/$)"#-" .) . 0-$/4*1 -+-*+ -/4) */# -.. /.ѵ0 /*/# '-" )0( -) /# 1-$ )/0- *! 0./*( -'*).  рхѵр счѵр . 0-$/4# ' Ѷ/# $-!$-1'0 ))*/ +-/$'4 ./$(/ ѵ# !$-1'0 *!/# . 0-$/4"$)./'*)$. / -($) 2# )/#  ''*2) !*-$(+$-( )/'*..  Ҋ җчѵрҘ '*)$.)*/ ( /* - *1 -' ) +-*1$.$*)!*-$(+$-( )/$.-$. /**1 -)4 !$$/$)- *1 -$'$/4ѵ 0./*( -'*).  рхѵр спѵп /# --  $1' .  Ҋ пѵр */'/- -  $1' .) '*).–)*)Ҋ0-- )/  рхѵр спѵр җҘ(*0)/.-  $1' 0) -/# 0./*( -#-" - "- ( )/.- !0''4*!!. /4*-- .+*) $)"(*0)/$)'0 $)/- )  */# -+4' .) -  .-$  '*2ѵ 

68 Metcash /.#-*0+ AnnualҞ$))$' Report 2019 +*-/рш тх 69

 /.#-*0+Ҟ$))$' +*-/рш тц Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued */Notes ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш *-/#For the year4 - ended ) 30 тп+-$'спр April 2019 ш   хѵ - -  $1' .) '*).җ*)/$)0 Ҙ чѵ -*+ -/4Ѷ+')/)  ,0$+( )/ ) о ')/о " $)"*!0)$(+$- /- -  $1' .) '*).  0$' $)". ,0$+( )/ */' )ڦ )ڦ )ڦ  (. '$1  -- #/  - -  $1' .җҘ 0./*( -'*). +- +4( )/.     ڿ )ڦ ڿ )ڦ ڿ )ڦ  0 - 1*.4  - ) тп+-$'спрш           + )$)"') Ѷ- .//  тцѵш рццѵх срфѵф /тп+-$'спрш        $/$*). Ҋ ухѵх ухѵх ڿрусѵц рппѵп ڿстѵр хсѵч ڿрѶссчѵс шсѵу  -$+)$-*( 0 /.+- #/$   $/$*)./#-*0"#0.$) ..*($)/$*). Ҋ тѵс тѵс Ҋ Ҋ ڿпѵу рѵр ڿ4. цтѵц фѵу тп(#/.. $.+*.'. Ҋ җтѵфҘ җтѵфҘ Ҋ Ҋ Ҋ Ҋ ڿ4. рсѵп пѵш хп )тп( 2/   1 -.'.*!$(+$-( )/Ѷ) / Ҋ пѵф пѵф Ҋ Ҋ ڿпѵс пѵф ڿ4. цѵу пѵх шп )хп( 2/   '..$!$/$*). Ҋ җхѵшҘ җхѵшҘ Ҋ Ҋ ڿпѵс пѵф ڿ4. уѵц пѵу рсп )шп( 2/   +- $/$*) җпѵтҘ җсшѵтҘ җсшѵхҘ Ҋ Ҋ ڿрсѵш тфѵр ڿ4. тѵч пѵт рсп(#/ -* '*.$)"')  тцѵх рччѵс ссфѵч ڿрусѵц  рппѵп ڿтхѵч рппѵп ڿрѶтсшѵч рппѵп '/*            /тп+-$'спрш    /р4спрчҗ- .// Ҙ       *./ ууѵт уптѵц уучѵп ڿрртѵт шшѵц ڿсчѵш цтѵп ڿрѶсфхѵс штѵу  -$+)$-*( 0 /.+- #/$  0(0'/  +- $/$*)) $(+$-( )/ җхѵцҘ җсрфѵфҘ җсссѵсҘ ڿҊ Ҋ пѵт пѵт ڿ4. ццѵу фѵч тп(#/..  /--4$)"(*0)/ тцѵх рччѵс ссфѵч Ҋ Ҋ Ҋ Ҋ ڿ4. уѵц пѵт хп )тп( 2/      Ҋ Ҋ ڿпѵу рѵп ڿ4. сѵх пѵс шп )хп( 2/   - ) тп+-$'спрч    Ҋ Ҋ ڿпѵс пѵф ڿ4. сѵп пѵр рсп )шп( 2/  + )$)"') Ѷ.+- 1$*0.'4- +*-/  тцѵш спуѵс сусѵр Ҋ Ҋ ڿрпѵр сфѵф ڿ4. сѵр пѵс рсп(#/ -* #)" .-$.$)"!-*(/# ++'$/$*)*!рф Ҋ җспѵрҘ җспѵрҘ ڿрртѵх  рппѵп ڿтшѵх рппѵп ڿрѶтуфѵп рппѵп '/* + )$)"') Ѷ- .//  тцѵш рчуѵр сссѵп җҘ # " $)"+-*!$' *!/- -  $1' .$)'0 .(*0)/.-  $1' 0) -/# 0./*( -#-" - ."- ( )/ѵ  $/$*). пѵр ттѵф ттѵх  # -*0+ 3+ /./#//# 0)$(+$- /- -  $1' .) '*).+- . )/ *1 - !0''4- *1 -' ѵ  %0./( )/.!-*(0.$) ..*($)/$*). Ҋ уѵр уѵр  $.+*.'. Ҋ җпѵфҘ җпѵфҘ цѵ ,0$/4Ҋ*0)/ $)1 ./( )/. (+$-( )/ Ҋ җтѵуҘ җтѵуҘ  '..$!$/$*). Ҋ җрпѵхҘ җрпѵхҘ  +- $/$*) җпѵрҘ җсшѵхҘ җсшѵцҘ /0- )  3/ )/ ++ ) $3contains key information about the nature and extent of the Group’s equityҊ*0)/ $)1 ./( )/.ѵ '*.$)"') Ѷ- .//  тцѵш рццѵх срфѵф  *)/$)" )/'$$'$/$ .) *(($/( )/. /тп+-$'спрч     ! -)*/ руfor details of the Group’s contingent liabilities in relation to equityҊ*0)/ $)1 ./( )/.ѵ *./Ѷ- .//  ууѵт тцхѵш усрѵс 0(0'/  +- $/$*)) $(+$-( )/Ѷ- .//  җхѵуҘ җршшѵтҘ җспфѵцҘ Share of investees’ profit  /--4$)"(*0)/Ѷ- .//  тцѵш рццѵх срфѵф  пѵх($''$*)ҘѶڦуѵц($''$*)җрчѷڦ.-2 0-$)"/# 4 $)1 ./( )/. *0)/In aggregate, the Group’s share of income from equityҊ /('+!* ('"($.*' #/$*)ѵ*)./-0 - .. /.0)рхѵп($''$*)Ҙ*!ڦстѵч($''$*)җрчѷڦ '0 ,0$+( )/$) ))/$/$*)./*+'  4/# $)1 ./ .ѵ 0--3 3+ ). $)*( /- *!$)пѵс($''$*)Ҙ.#ڦрѵу($''$*)җрчѷڦ. 0'($#2#$ /$*)ѵ*)./-0 - .. /.0)ршѵх($''$*)Ҙ*!ڦттѵш($''$*)җрчѷڦ. 0'($/( )0$+,  ( At the reporting date, the Group’s share of unrecognised gains or losses is not material. хѵп($''$*)Ҙѵڦцѵч($''$*)җрчѷڦ.$тп+-$'спрш/./-/(* .#+0- -$# (. . ' (($!- (0 ' #./ ..!* 0'1"(--4$ # hare of investees’ net assets  рш рч )ڦ )ڦ    0-- )/.. /. цпѵр цчѵф *)Ҋ0-- )/.. /. ртпѵс ррчѵш */'.. /. сппѵт ршцѵу    0-- )/'$$'$/$ . җрстѵцҘ җшуѵшҘ *)Ҋ0-- )/'$$'$/$ . җруѵпҘ җтхѵхҘ */''$$'$/$ . җртцѵцҘ җртрѵфҘ  /.. /. хсѵх хфѵш 

70 Metcash /.#-*0+ AnnualҞ$))$' Report 2019 +*-/рш тч  /.#-*0+Ҟ$))$' +*-/рш тш 71 */Notes ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued *-/#For the year4 - ended ) 30 тп+-$'спр April 2019 ш For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш   шѵ )/)"$' )/)"$' .... /.) "** 2$''/.) "** 2$'' шѵ )/)"$' .. /.) "** 2$''җ*)/$)0 Ҙ *!/2-   1 '*+( )/ 0./*( - - )( . (+$-( )// ./.!*-"** 2$'') $)/)"$' .2$/#$) !$)$/ 0. !0''$1 . *./.*./. *)/-/.*)/-/. ) */# - ** 2$'' */' esrition o ash eneratin units )ڦ )ڦ )ڦ )ڦ )ڦ        ** 2$'',0$- /#-*0"#0.$) ..*($)/$*).$.''*/ /*/# '*2 ./' 1 '2$/#$)/#  )/$/4/2#$#/# "** 2$''$.(*)$/*- Ѷ  $)"/# /#- .#Ҋgenerating units (or ‘CGU’s) Ҋ** Ѷ $,0*-)  - 2- ѵ ) !$)$/ '$! $)/)"$' .+-$(-$'4*(+-$. /-   - ) тп+-$'спрш      )( .) '$ ) .ѵ + )$)"') Ѷ-Ѷ- .//.//  фшѵф фтѵц упѵт хтчѵч цшсѵт  $/$*). ррѵш ҊҊ ҊҊ ҊҊ ррѵш lloation to s  $/$*)./#-*0"#0.$) ..*($)/$*). ҊҊ ҊҊ ҊҊ чѵу чѵу The carrying amounts of goodwill and indefinite life intangibles are allocated to the Group’s CGUs as follows:  %0./( )/./*0.$) ..*($)/$*). ҊҊ ҊҊ ҊҊ сѵп сѵп  - )( .) */# -  (+$-( (+$-( )/)/ җпѵшҘҗпѵшҘ ҊҊ ҊҊ ҊҊ җпѵшҘҗпѵшҘ  ''*/ "** 2$'' $)/)"$' . *./Ҋ/3 $.*0)/-/ .  '..$!$/$*). хѵш ҊҊ ҊҊ ҊҊ хѵш  рш рч рш рч рш рч (*-/$./$*) җссѵуҘҗссѵуҘ җуѵцҘҗуѵцҘ ҊҊ ҊҊ җсцѵрҘҗсцѵрҘ ڿ ڿ )ڦ )ڦ )ڦ )ڦ ./$(/$)"0Ҋ" ) -#. '*.$)"')  ффѵп ушѵп упѵт хушѵс цштѵф              ڿррѵт ڿуутѵц уупѵш пѵс пѵс ррѵт  ** /тп+-$'спрш      ڿрпѵр ڿрршѵц ррцѵу рсѵш рсѵш рпѵр -*0,$ *./ сцчѵш рцхѵр утѵу рѶупхѵп рѶшпуѵу ڿрпѵр ڿчфѵч чпѵф сцѵс сцѵс рпѵр  -2 - 0(0'/ (*-/$./$*)) $(+$-( )/ җсстѵшҘҗсстѵшҘ җрсцѵрҘҗрсцѵрҘ җтѵрҘҗтѵрҘ җцфхѵчҘҗцфхѵчҘ җрѶррпѵшҘҗрѶррпѵшҘ  хушѵс хтчѵч упѵт упѵт    /--4$)"(*0)/ ффѵп ушѵп упѵт хушѵс цштѵф

     ssessent o reoverale aounts  - ) тп+-$'спрч$'спрч      + )$)"') Ѷ.+- 1$*0.'4- +*-/  хфѵш чшѵр упѵч шфхѵш рѶрфсѵц # - *1 -' (*0)/.2 -  / -($) . *)1'0 Ҋ$)Ҋ0. '0'/$*).0.$)".#!'*2+-*% /$*).*1 -$)"!$1 4 -+ -$* Ѷ #)" .-$.$)"!-*(/# ++'$/$*)*!рф ҊҊ җсхѵтҘҗсхѵтҘ ҊҊ ҊҊ җсхѵтҘҗсхѵтҘ 2#$#- . *)++-*1 ./-/ "$+').*-!*- ./.ѵ./$(/ . 4*) /# !$1 4 -+ -$* - '0'/ 0.$)"/ -($)'"-*2/# + )$)"') Ѷ- .//  хфѵш хсѵч упѵч шфхѵш рѶрсхѵу -/ ./#/- ++'$' /*/# /- $)" )1$-*)( )/$)2#$#/# *+ -/ .ѵ  $/$*). цѵш ҊҊ ҊҊ ҊҊ цѵш e assutions used in assessent  $/$*)./#-*0"#0.$)$) ..*($)/$*)...*($)/$*). ҊҊ ҊҊ ҊҊ уѵш уѵш  %0./( )/./*0.$) ..*($)/$*). җпѵцҘҗпѵцҘ ҊҊ ҊҊ җцѵчҘҗцѵчҘ җчѵфҘҗчѵфҘ # 1'0/$*).0. /*.0++*-//# --4$)"(*0)/.*!$)/)"$' .. /.- . *)!*-2- '**&$)"& 4..0(+/$*)./#/- Ѷ4 )/0- Ѷ0) -/$)ѵ# )/0- ) .$.*!/# & 4..0(+/$*).0. /* ./$(/ !0/0- .#!'*2.) /#  $.*0)/-/ .0. $)/#  (+$-( (+$-( )/)/ җрѵхҘҗрѵхҘ җтѵпҘҗтѵпҘ җпѵсҘҗпѵсҘ җтрфѵсҘҗтрфѵсҘ җтспѵпҘҗтспѵпҘ +-*% /$*).Ѷ2# ) / -($)$)"/# - *1 -' (*0)/*! #Ѷ- . /*0/ '*2) $)/# /' *1 ѷ $.+*.'. җпѵуҘҗпѵуҘ ҊҊ ҊҊ ҊҊ җпѵуҘҗпѵуҘ  '..$!$/$*). чѵш ҊҊ ҊҊ ҊҊ чѵш • + -/$)".#!'*2.Ҋ+ -/$)".#!'*2+-*% /$*).-  3/-/ !-*(/# (*./-  )/++-*1 ./-/ "$+').*-!*- ./. (*-/$./$*) җспѵфҘҗспѵфҘ җхѵрҘҗхѵрҘ җпѵтҘҗпѵтҘ ҊҊ җсхѵшҘҗсхѵшҘ /#/- '/ /*/#  3$./$)".. /. ѵ*- #Ѷ/# .#!'*2+-*% /$*).!*-!$1 Ҋ4 -+ -$* #1  ) / -($) .  '*.$)"') Ѷ- .//  фшѵф фтѵц упѵт хтчѵч цшсѵт *) 3+ //$*).*!!0/0- + -!*-() ѵ 4..0(+/$*).$)/# .#!'*2.$)'0 .' .1*'0( "-*2/#Ѷ*./.*!.' .) *./.       *! *$)" 0.$) ..ѵ # .  ..0(+/$*). -  .  *) 3+ //$*). *! (-& / ()  )  *+ -/$*)' + -!*-() ѵ /тп+-$'спрч       .#!'*2+-*% /$*).- . *) -$.&Ҋ %0./ !*- ./.''*2$)"!*- ./$(/  #)" . $)/#  0.$) ..Ѷ/# *(+ /$/$1  *./Ѷ- .//  схрѵп рцхѵр утѵу рѶтшфѵх рѶчцхѵр /- $)" )1$-*)( )/Ѷ' "$.'/$*))  *)*($"-*2/#ѵ 0(0'/ (*-/$./$*)) $(+$-( )/Ѷ- .//  җспрѵфҘҗспрѵфҘ җрссѵуҘҗрссѵуҘ җтѵрҘҗтѵрҘ җцфхѵчҘҗцфхѵчҘ җрѶпчтѵчҘҗрѶпчтѵчҘ   /--4$)"(*0)/Ѷ- .//  фшѵф фтѵц упѵт хтчѵч цшсѵт • $.*0)/-/ .Ҋ$.*0)/-/ .- . *)/# 2 $"#/ 1 -" *./*!pital (‘WACC’) for the Group adjusted for an assetҊ  .+ $!$-$.&+- ($0(..$") /* #ѵ# .. /Ҋ.+ $!$-$.&+- ($0($. / -($) . *)-$.& ( 2$/#$)/#   .#!'*2+-*% /$*).) */# -!/*-..+ $!$/*/# $) 0./-$ .$)2#$#/# .*+ -/ ѵ  # '0'/$*)*!$.(-& /Ҋ -$1 )) & 4$)+0/.$)'0 /-" /+$/'./-0/0- Ѷ ,0$/4 /Ѷ(-& /-$.&+- ($0(Ѷ-$.&Ҋ !- -/ *!- /0-))  /-$.&+- ($0(ѵ- Ҋ/3 ,0$1' )/.*!/#  *+/  $.*0)/-/ .-  -$1 $/ -/$1 '4)  $!! - ѵ -2 - -*!ڿруѵр (-*0,$ -*!ڿѶруѵт **-*!ڿ/ .2 - рхѵр3-ѵ- Ҋ/.2*'!#.3/!*/( /3  ("($)$/ #/(* .  •  -($)'"-*2/#-/ .Ҋ.#!'*2. 4*) /# +-*% /$*)+ -$* -  3/-+*'/ $) !$)$/ '40.$)" ./$(/ '*)"Ҋ/ -("-*2/# ѵ.''*/ $'++.2ڿ/ *!рѵф'"-*2/#-ѵ/ -($) /- +*. #/#2#$($/( )(*1$-( "($ -/ #/*/ '$'++. /- Results o assessent Based on the FY19 assessment, no impairment of goodwill was identified in any of the Group’s C.ѵ

72 Metcash /.#-*0+ AnnualҞ$))$'Ҟ$))$' Report 2019 +*-/+*-/ршрш упуп  /.#-*0+Ҟ$))$' +*-/рш ур 73 Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш   шѵ )/)"$' .. /.) "** 2$''җ*)/$)0 Ҙ ррѵ -*1$.$*). Sensitivit to hanes in e assutions -*+ -/4' .  ) *) -*0. /$1 '4'*2- ' - *).$-**($.  чрѵт($''$*)ѵ# #ڦ4/(0*)"(--4$./$ 3  ** #/!*/(0*) '- 1* - #  (+'*4  *)/-/. /( ).. .. #/ '- .0'/Ѷ2#$million recorded against the CGU’s goodwill in FY18.. 315.2ڦ!* "-#/( )-$+)$("(2$*''*! )/$/' ( )/. +-*1$.$*). */' $)*-+*-/ . %0./( )/./* - ...#!'*2-$.&Ѷ/# #  -**(- ($).'$($/ ) . ).$/$1 /*- .*)'4+*..$' #)" ./* )ڦ )ڦ )ڦ & 4$)+0/.ѵ# !*''*2$)". ).$/$1$/4#)" ./*/# ** -  ( /* - .*)'4+*..$' ) 2*0' 0. )$(+$-( )/Ѷ ..0($)"''*/# -..0(+/$*).- # ' *)./)/ѷ     тп+-$'спрш    • -**(/*)$'ѵ 0-- )/ рпрѵш ссѵп рстѵш  #0 - -Ѷ2*0' '4$)"/# / -($) '0Ѷ$).- 4(*$/ %*-+''..*-  /. -*!($(*$/0 -ڿшѵс  *)Ҋ0-- )/ ррѵф рпуѵу ррфѵш -*Ѹ'$(*/)**-  # 0 - '0*2ڿ/ /*рсѵу*0)/-$. 3Ҋ//.*+ #/($ . -($( •   рртѵу рсхѵу стшѵч •  - . *!рхп.$.+*$)/.$)/# / -($)'"-*2/#-/ 2*0' - 0 /# #  -**(/*)$'ѵ     тп+-$'спрч    *" /# -Ѷ)4 1 -. #)" .$)/# & 4$)+0/.2*0' 0(0'/$1 '4- .0'/$))$(+$-( )/ѵ//# .. ..( )/ / Ѷ)*- .*)'4 0-- )/ рпцѵу ршѵп рсхѵу +*..$' #)" $)& 4..0(+/$*).2*0' 0. /# --4$)"(*0)/.*!/#  $,0*-)  - 2- ./* 3 /# $-- .+ /$1  *)Ҋ0-- )/ ррѵс рсхѵу ртцѵх - *1 -' (*0)/.ѵ  ррчѵх руфѵу схуѵп   -*+ -/4' . +-*1$.$*).$)'0 /# 1'0 *! -/$)- /$'./*- ' . *'$"/$*).- *")$. .+-/*!/# ,0$.$/$*)*!-)&'$). рпѵ )/ - ./ -$)"*--*2$)". $)рс)   $)рцѵ# +-*1$.$*)$.$)$/$''4- *")$. //# ,0$.$/$*) / !$-1'0 ) .0. ,0 )/'40/$'$. /*. //' ' .   рш рч *'$"/$*).ѵ #  +-*1$.$*) - '/  /* ) $) $1$ 0' ' .  $. - *")$.  2# ) /#  -*0+ #. ( / *- */# -2$.  3/$)"0$.#  $/. ѵ . '/#/- (0''0!($.(*$/"$'* )ڦ )ڦ    -*1$.$*). -  '.* - *")$.  !*- *'$"/$*). .0# . *) -*0. - /$' #   ' .  3+*.0- .Ѷ "0-)/ .Ѷ +-*+ -/4 (& Ҋ"** Ѷ 0-- )/   - ./-0/0-$)") */# -*./.ѵ + ) $)"*)/# )/0- *!/# . *'$"/$*).Ѷ/# 4-  3+ / /* . //' *1 -/# / -(*!/# ' . Ѷ $)) ' . *'$"/$*). рѵш рѵш //# *)'0.$*)*!/# ' . *-*/# -2$. 2# )/# *'$"/$*)1 ./.ѵ  рѵш рѵш    *1 ( )/.$)+-*+ -/4' . ) *) -*0.*)/-/.+-*1$.$*). рш рч *)Ҋ0-- )/    )ڦ )ڦ  рчпѵп шпѵп  /$ (4.–.(*'&( +-$1/ +' ( )/җҘ Ҋ ттѵш     $)) ' . *'$"/$*). фѵф тѵф + )$)"')   руфѵу рхтѵр $'/ -''*) рѵс рѵс җ 1 -.'.Ҙҝ 3+ ).  0-$)"/# 4 -Ѷ) /  җфѵхҘ цѵп  ! -- *--*2$)"*./. җтѵрҘ җрѵфҘ /$'$.  0-$)"/# 4 -  җсрѵпҘ җрчѵрҘ  рчтѵх рсцѵр  .0'/$)"!-*(,0$.$/$*).*!0.$) .. .  рѵр җртѵфҘ $)) *./ $.*0)/-/  %0./( )/  хѵф хѵш *- *--*2$)"!$'$/$ . '*.$)"')   рсхѵу руфѵу  )*/ руfor details of the Group’s core borrowing facilitiesѵ   $)) ' . *'$"/$*). рсѵ *)/-$0/  ,0$/4) - . -1 . $)) ' . .#1 )1 -" - ($)$)"' . / -(*!сѵф4 -.2$/#/# *+/$*)/*+0-#. /# .. ///# *(+' /$*)*!/# ' .   ,0$/4 0/$'$/$ . *)/-$. '$ $)'Ҙѵ -/ڿҗрчѷуѵсڿterm for the asset’s market value. The weighted average interest rate implicit in the lease isуѵс - . 0- 4#-" *1 -/# ' . .. /ѵ  рш рч  0( -*! 0( -*! )ڦ . -#. )ڦ . -#. ./(( 1*'$(($ # *- *--*2$)".*!/# -*0+(0./*(+'42$/#/2*+-$(-4*1 ))/.2#$#++'4/*/# .4) $/ )&!$'$/$ .) /#       2*-&$)"+$/'!$'$/$ .ѵ# . *1 ))/.-  !$) $)/# !$'$/4"- ( )/.) - .0((-$. .!*''*2.ѷ$3 #-" . /р4 шцфѶхурѶчцх хппѵп шцфѶхурѶчцх рѶцршѵт *1 - /$* җ) -'4$)" -)$)".  !*-  )/ - ./Ѷ 3Ѷ  +- $/$*)Ѷ (*-/$./$*) )   /  )/ җ Ҙ $1$  4 */'  / )/ - ./+'0. / )/3+ ). Ҙ)  )$*- 1 -" /$*җ*/'-*0+ / $1$ 4) -'4$)"-)$)". !*-  )/ - ./Ѷ3Ѷ #- 04&) - '/ *./.Ѷ) /*!/3 җххѶтчфѶрсчҘ җупѵчҘ Ҋ Ҋ  +- $/$*)) (*-/$./$*)җ ҘѵAt the reporting date, there were no defaults or breaches on the Group’s core borrowings. +$/'- 0/$*)җ)*/ ршҘ Ҋ Ҋ Ҋ җрѶрршѵтҘ /тп+-$' шпшѶсфхѶцуч ффшѵс шцфѶхурѶчцх хппѵп $-1'0   # --4$)"(*0)/.*!/# -*0+Ѿ.*--*2$)".++-*3$(/ /# $-!$-1'0 ѵ# 2 $"#/ 1 -"  !! /$1 $)/ - ./-/ *) /#  0''4+$ *- $)-4.#- .--4*) 1*/ + -.#- ) --4/# -$"#//* $1$ ) .ѵ#- .#1 )*+-1'0 ѵ   . #Ҙѵڿҗрчѷтѵхڿ.тѵу-2 '4$)*!/# !$) //#  )+.Ѷ/ .2$)"$)/ - ./- '0Ѷ$).(*''/$+"($&-*2 ( /$ (4. -/ . 3'0 '$) ! .*)0)0/$'$. !$'$/4') .ѵ 

74 Metcash /.#-*0+ AnnualҞ$))$' Report 2019 +*-/рш ус  /.#-*0+Ҟ$))$' +*-/рш ут 75 Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш   рсѵ *)/-$0/  ,0$/4) - . -1 .җ*)/$)0 Ҙ руѵ $))$'-$.&()" ( )/ &04-& /рфп($''$*)*!!Ҋ(ڦ!*(*$/ '+)* . $$'*+ (. /$1 % рфп($''$*)$)0"0./ڦ-*!Ҙ 0..$(*. -#.'/*/!*ڿ- .җхѵч-4.#$) &*!ххѶтчфѶрсч*-04-& /Ҋ(!!*( / '+)*0+*- # .#*-/Ҋ ).#. .Ѷ /$)"'*+ - ) )//#  The Group’s principal financial instruments comprise bank loans, bonds and overdraft.Ѷ!$) - +-$s.#’#./ *//(0*.$ ڿру #- +- . )/- Ѷ2#$сѵсх+ -.#ڦ/&/#"*0 - .2 --4.#$) спрчѵ# *- .-$*0.1'.*#/$1 .ѵThe main purpose of these instruments is to finance the Group’s operations. The Group -$1  ) +*.$/. -  / -(пѵхр+ -.#ڦ!*/( (*+)*'/$+ (рпшѵф($''$*)Ҙڦ- җрѵхф+ -.#ڦ!* ( $1$  )&!0''4!- *(+-$.&04 ѵ# )$/ ($40.5 million). These amounts, along with $0.3 million of transaction costs, were debited to the Company’s profit reserve an .#-  */# -!$))$'.. /.) '$$'$/$ ..0#./- -  $1' .) +4' .Ѷ2#$#-$.  $- /'4!-*($/.*+ -/$*).ѵ +$/'*0)/Ѷ- .+ /$1 '4ѵ# .#- .*0"#/&2 - .0. ,0 )/'4) '' ѵ  The main risks arising from the Group’s !$))$'$)./-0( )/.- $)/ - ./-/ -$.&Ѷ!*- $") 3#)" -$.&) - $/-$.&ѵ# *-  - 1$ 2. )  "- . +*'$$ . !*- ()"$)" # *! /# .  -$.&. )  /# 4 -  /$'   '*2ѵ The objective of the Group’s risk /# -- . -1 . ()" ( )/+*'$4$./*.0++*-/ '$1 -4*!/# -*0+Ѿ.!$))$'/-" /.2#$' +-*/ /$)"!0/0- !$))$'. 0-$/4ѵ *- $")0-- )4  #- Ҋ.  /-).'/$*) .#!'*2# "  */'  /$'.*!/# .$")$!$)/*0)/$)"+*'$$ .) ( /#* . *+/ Ѷ$)'0 $)"/# -$/ -$!*-- *")$/$*)Ѷ/# .$.*!( .0- ( )/ +4( )/.- . -1  - . -1  - . -1  */# -- . -1 . ) /# .$.*)2#$#$)*( )  3+ ). .- - *")$. Ѷ$)- .+ /*! #'..*!!$))$'$)./-0( )/Ѷ!$))$''$$'$/4)  3ѵ$ ( ++($ .*'.$  -/( )0-/.($4/$0, )ڦ )ڦ )ڦ )ڦ      /р4спрц сѵс җуѵхҘ җпѵхҘ җтѵпҘ $,0$ $/4-$.&) !0) $)"()" ( )/ */'*(+- # ).$1 $)*( Ѷ) /*!/3 Ҋ пѵс пѵц пѵш $,0$ $/4-$.&$./# -$.&/#//# -*0+2$'' 0)' /*( /$/.+4( )/*'$"/$*).2# )/# 4!'' 0 0) -)*-(') ./- ..  -).! -./*- /$)  -)$)". җпѵшҘ Ҋ Ҋ җпѵшҘ $-0(./) .ѵ*'$($//#$.-$.&Ѷ/# -*0+()" ... /.2$/#'$,0$ $/4$)($) Ѷ) (*)$/*-.!0/0- .#!'*2.) '$,0$ $/4*) ( .#ڿ#ср).Ѷ*!2#$''*+$/2*-&$)" )$'$/4! /$ .4)$)"$. /!0)  *!-4.*0-.$.ѵ# -*0+’s+-$($'4 4( )/. 3+ ).  сѵт Ҋ Ҋ сѵт+ .Ҋ -# /тп+-$'спрч тѵх җуѵуҘ пѵр җпѵцҘ 0/$'$. /тп+-$'спршѵ# -*0+(*)$/*-.!*- ./.*!'$,0$ $/4- . -1 .*)/# .$.*! 3+ / .#!'*2ѵ      *1 ( )/$)!$-1'0 *! -$1/$1 . Ҋ Ҋ җрѵтҘ җрѵтҘ vailale redit ailities *1 ( )/$)!*- $")0-- )41'0/$*). Ҋ җпѵуҘ Ҋ җпѵуҘ //# - +*-/$)" / Ѷ/# -*0+# 0)0. - $/!$'$/$ .1$'' !*-$/.$(( $/ 0. .!*''*2.ѷ 3$(+/*!*1 (*1 ( )/. Ҋ Ҋ пѵу пѵу 0-)/ .о */'*(+- # ).$1 $)*( Ѷ) /*!/3 Ҋ җпѵуҘ җпѵшҘ җрѵтҘ */'!$'$/4  /0."  */# -0."  $'$/41$''  #- Ҋ. +4( )/. 3+ ).  рѵс Ҋ Ҋ рѵс )ڦ )ڦ )ڦ )ڦ  /тп+-$'спрш уѵч җуѵчҘ җпѵчҘ җпѵчҘ       4) $/ !$'$/4 хцфѵп рчпѵп Ҋ ушфѵп  ! -++ ) $3!*-!0-/# - /$'.*)/# *1 - . -1 .ѵ *-&$)"+$/'Ѷ$)'0 $)""0-)/ . рчфѵп Ҋ ршѵф рхфѵф  $'/ -''*) рѵс рѵс Ҋ Ҋ ртѵ  *)$'$/$*)*!.#!'*2.!-*(*+ -/$)"/$1$/$ . чхрѵс рчрѵс ршѵф ххпѵф  .#) .# ,0$1' )/. Ҋ Ҋ Ҋ русѵх рш рч   чхрѵс рчрѵс ршѵф чптѵр )ڦ )ڦ     • 4) $/ !$'$/4 ссфѵп($''$*)ҘѶڦ0 /* 3+$- $)0"0./спсрҗ  -$'$/$ .$'$/$ .ѵ# !- 1*'1$)"! 0- - . )$*-0).).)&'* /$ ршфѵр җруфѵуҘ 4) - 4 #/-*!/$!*-+/  (* .. $/$'$! #/(* '4)/ - ./$.+ рппѵп($''$*)Ҙѵڦ4спсуҗсппѵп($''$*)ҘѶڦ4спстҗрфпѵп($''$*)ҘѶڦ4спссҗ    dustents or  +'0.(-"$)ѵ# ++'$' (-"$)$. + ) )/0+*)) .'/$*)(/-$3'$)& /*/# . )$*-' 1 -" -/$*#$ 1 ѵ# .   +- $/$*)) (*-/$./$*) фхѵц фхѵх )&'*).- .0% //* -/$)!$))$'0) -/&$)".. /$' $))*/ рпѵ (+$-( )/'*.. .) ) /' . +-*1$.$*).җ)*/ тҘ цѵт тцсѵх   /+-*!$/*) $.+*.'*!+-*+ -/4Ѷ+')/)  ,0$+( )/ җсѵшҘ җуѵуҘ • *-&$)"+$/' ''$'$/$ .2$рчфѵп($''$*)ѵ# . !ڦ"($''/*/. $/$'$!"(- 1*'1$ 0- 4/2*0). - - +- . )/).)&'*'+$/4( )/. рѵс сѵт *-&$)"+ .Ҋ -# .$. $/$'$! . #/- (2)0- ).)4'*' *)4)/ - ./+ рппѵп($''$*)Ҙѵڦ0) спспҗ  )чфѵп($''$*)Ҙڦ4спспҗ($ 3+$- /# - %0./( )/. пѵч тѵч . *)*-/# .#-/ +'0.(-"$)ѵ# . )&'*).- .0% //* -/$)!$))$'0) -/&$)".. /$' $)   )*/ рпѵ hanes in assets and liailities   )- . $)/- ) */# --  $1' . җтхѵпҘ җхуѵцҘ  )- . $)$)1 )/*-$ . җтшѵрҘ җуфѵцҘ   - . $)/3') . цѵп цѵш  )- . $)+4' .) +-*1$.$*). фуѵч штѵт .#!-*(*+ -/$)"/$1$/$ . сууѵш сцхѵт   

76 Metcash /.#-*0+ AnnualҞ$))$' Report 2019 +*-/рш уу  /.#-*0+Ҟ$))$' +*-/рш уф 77 Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш   руѵ $))$'-$.&()" ( )/җ*)/$)0 Ҙ руѵ $))$'-$.&()" ( )/җ*)/$)0 Ҙ aturit analsis o inanial liailities ased on ontrated date ./# #0- ' 2.)*/#$ 1 !*-/# !$))$'4 - )  0) спрчѶ$/$.)*/+*..$' /* / -($) /# .+ $!$*).$ -/$*) /#/2*0' #1  )+4' 0) -/# +0/*+/$*)"- ( )///#//$( ѵ *2 1 -Ѷ..0($)"/# !$))$'#0- ' #  ) # !*''*2$)"/' - !' /./# "-*..*)/-/ 1'0 .*!!$))$''$$'$/$ ./ "*-$. 4/# $-*)/-/  / .*!. //' ( )/ѵ #$ 1 Ѷ) . *)$/#$ .- +*-/ !$))$'- .0'/.!*-/# 4 - )  0) спрчѶ /.# ./$(/ ./#//# *).$ -/$*) рфф($''$*)ѵڦ ((*$''$)рупڦ( /2 ) 1# -2*0' '4$)#$ .спрч!$)/*!/# $/ ' $)- .+4ѵ-*.. +/ &((* '4+/. - /($ /-"($/*'! " #*/ .0 -/#/./-/(*+2. /-/. - /($ .$-+)*. $1/-$1  '// ./  . //'  -$1/$1 .*(+-$. !*-2-  3#)" *)/-/./#/- 0. /*# " )/$$+/ +0-#. *(($/( )/.ѵ) -/# / -(. #  / -($)/$*)*!/# +0/*+/$*)*).$ -/$*)) /# (/0-$/4 / $)'0 )0( -*!+*/ )/$''4(/ -$'%0 " ( )/. *!/# . "- ( )/.Ѷ/# . //' ( )/./ 3+$-4$)'0 */#.#+4( )/) -  $+/ѵ )  ./$(/ .) /# - !*- /# /0'*).$ -/$*)) /$($)"*0' 1-4ѵ  *-  # +0/*+/$*)"- ( )// -($)/ .2# ) /.# . ./*#*' .#- .$)$/#$ .*-$!$/#$ .'$./.*)/# ѵ р4 - /#)ф • /# -+0/*+/$*). *-' .. рҊф4 -. 4 -. */'  )ڦ )ڦ )ڦ )ڦ   /.#'.*$..0 +0/*+/$*)/**Ҋ$)1 ./*-.$)#- 2- %*$)/1 )/0- !*-/# $-*2) -.#$+$)/ - ./$)/#  ,0$/4Ҋ*0)/       $)1 ./( )/ѵ #  #*' -. *! /#$. *+/$*) #1  /#  -$"#/ /* +0/ /#$. $)1 ./( )/ & /* /#  -*0+ 0) -  -/$) +- .-$  ./тп+-$'спрш     $-0(./) .ѵ #  +0/ *+/$*) +0-#.  +-$  $. !$)  2$/#$) /#  *+/$*)  )  $. /$1  0)/$' +-$' спссѵ #  +0/ шѵс($''$*)Ҙѵڦрсѵт($''$*)җрчѷڦ */ /)$/. .$(*$/- $.(* рѶшхцѵц Ҋ Ҋ рѶшхцѵц . '4+- #/* ( - $)) ' . *'$"/$*). сѵс фѵф Ҋ цѵц  !0-/# -/2*+0/*+/$*).2-$// )*1 -)*)Ҋ/*! фѵт($''$*)Ҙ$)- .+ڦфѵт($''$*)җрчѷڦ!*$'$/4'$ *")$. '.*-.пѵц рѵр Ҋ рѵч # -*0+# ./-/(* /(-0"'$(($ 0/*+/$*).2-$// )*1 -)*)Ҋ*)/-*''$)"$)/ - ./. фѵт Ҋ Ҋ фѵт *)/-*''$)"$)/ - ./.$))*)Ҋ2#*''4*2) .0.$ $-$ .2$/#$)/#  - 2- . "( )/ѵ# . +0/*+/$*)--)" ( )/.''*2($)*-$/4 )&) */# -'*). фѵц рчцѵф рѵф ршуѵц .#- #*' -./*. ''/# $- ,0$/4$)/ - ././* /.#Ѷ.0% //*.+ $!$/ -(.) *) $/$*).ѵ# . +0/*+/$*).- ( .0- //#   -$1/$1 '$$'$/$ .–) /. //'  рѵп пѵх Ҋ рѵх +- . )/1'0 *!/# - (+/$*)(*0)/0) -/# *+/$*).. /*0/$)/# *1 (/0-$/4/' ѵ  -$1/$1 '$$'$/$ .–"-*... //' ѷ     Ҋ )!'*2. пѵц Ҋ Ҋ пѵц )/ - ./-/ -$.& The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s bank debt obligations w$/# Ҋ0/!'*2. җпѵцҘ Ҋ Ҋ җпѵцҘ !'*/$)"$)/ - ./-/ ѵ  /(/0-$/4 рѶшчсѵх ршуѵц рѵф сѶрцчѵч  /.#()" ./#$.-$.&4 )/ -$)"$)/*$)/ - ./-/ .2+*)/-/.2$/#1-$*0.(%*-0./-'$))&.ѵ/тп+-$'спршѶ/#  !* /-/. - /($ . "- 1 2 $"#/ )-. /0-$/4*!рѵц4" ( " #1 - 2 $"#/шпѵп($''$*)2$/#ڦ.2 " #'+$($-+   -*! - #/ ( 2$/#шinanial nstruents) *-" .$) /$1 #  !!/$1 ./* -$1  -./# . *).$ѵ# -*0+ڿсѵт  -*  р4 - рҊф /#)ф  /- /./# (..#!'*2# " .ѵ# . $)/ - ./-/ .2+*)/-/.-  3+*. /*!$-1'0 (*1 ( )/.. *)#)" ./*/#  *-' .. 4 -. 4 -. */' $)/ - ./-/ 0-1 ѵ )ڦ )ڦ )ڦ )ڦ      //# - +*-/$)" / Ѷ/# -*0+# /# !*''*2$)"($3*!!$))$'.. /.) '$$'$/$ . 3+*. /*0./-'$)1-$' $)/ - ./-/  ./тп+-$'спрч -$.&/#/Ѷ 3 +/.$) $/ Ѷ- )*/ .$")/ $).#!'*2# " .ѷ - ) */# -+4' . рѶшптѵх Ҋ Ҋ рѶшптѵх рш рч  )ڦ )ڦ сѵх сѵш Ҋ фѵф .(*$/"$'* . ' (($ $))$'"0-)/ *)/-/. рѵф Ҋ Ҋ рѵф    0/*+/$*).2-$// )*1 -)*)Ҋ*)/-*''$)"$)/ - ./. фѵт Ҋ Ҋ фѵт $))$'.. /.   )&) */# -'*). сѵт шчѵу спѵу рсрѵр .#) .# ,0$1' )/. русѵх рхрѵс  -$1/$1 '$$'$/$ .–) /. //'  пѵц пѵц Ҋ рѵу     -$1/$1 '$$'$/$ .–"-*... //' ѷ     $))$''$$'$/$ .   Ҋ )!'*2. җхѵфҘ Ҋ Ҋ җхѵфҘ )&'*).–.4) $/  җрчпѵпҘ җшпѵпҘ Ҋ0/!'*2. хѵх Ҋ Ҋ хѵх +-$1/ +' ( )/ Ҋ җстѵтҘ  /(/0-$/4 рѶшрхѵр рпсѵп спѵу сѶптчѵф $'/ -''*) җрѵсҘ җрѵсҘ  .. )/ - ./-/ .2+.)*/$*)'+-$)$+'1'0 Ҋ .$")/ ..#!'*2# " . шпѵп шпѵп # -*0+#."-)/ /2**)/$)" )/+0/*+/$*).Ѷ2#$#- )*/$)'0 $)/# *1 (/0-$/4)'4.$./' ѵ# . *+/$*).-  - *")$. /!$-1'0 *!)$'ѵ -*.. 3+*.0-  җшрѵсҘ җсуѵфҘ • $/#$ ./*- ./4 / җ$/#$ .Ҙ # -*0+Ѿ./- .0-4+*'$4- ,0$- .*-  //* # "  /2 )-)" *1 - -/$)(/0-$/4+ -$* .ѵ*-  /$. !$) . шпѵпڦ!*. " #+/ .2/тп+-$'спршѶ/# $)/ - ./-ѵ.- 4 #/- 1*0-**/ / 3+ .$#2#$/ (2- !*' 1 ')0)$($) #/  )" ѵ-  ($''$*)! ''2$/#$)/# - ,0$- *0)/) ,0$/4Ҋ .  *")$. # $. -#$ .ҘѶ 2#$җ$/  / 4/ . -*/ . $#/$ ($ /. - /($ +$#.- (2* ڿсхѵп  .# #./  Sensitivit analsis ڿ1 /# -$"#//*+0//# $-цуѵп#$ .# -.$)$/ - #*'$)$)".# .# /җ- ! -)*/ цҘѵ# - ()'0+Ѿ.*- #/($/( )/. 1($ *2) -.#$+$)/ - ./s to Metcash subject to a margin related annual financial hurdle (‘hurdle’) being achieved. 0 /*/# Group’s interest rate derivatives that hedge core debt,- .*)' #)" .$)$)/ - ./-/ .- )*/ 3+ / /*#1  # +0/*+/$*).)  3 -$. ))0''4 0-$)"+- .-$ + -$* $(( $/ '4!*''*2$)"/# ++-*1'*!$/#$ .))0' (/ -$'$(+/*)/# Group’s net profit after tax ) */# -*(+- # ).$1 $)*( ѵ !$))$'.// ( )/.*-$) -/$)'$($/ $-0(./) .4$) $1$ 0'.#- #*' -.2$/#$)+- .-$ + -$* ѵ# +0/*+/$*). )Ѷ#*2 1 -Ѷ*)'4  3 -$.  0-$)"/# . + -$* .$!$/#$ .#$ 1 /# #0- ' $)/# +- 1$*0.!$))$'4 -ѵ  #*0' /# #0- '  #$ 1 Ѷ) /# .#- #*' -. ' //* 3 -$. /# +0/*+/$*)Ѷ/# +0-#. *).$ -/$*)+4' 4  /.#$.. *)(0'/$+' *!/# +-$*-4 -- +*-/  -)$)". %0./ !*-)0( -*!(/ -$'!/*-./#/- .0% //* *(( -$') "*/$/$*)) "- ( )/ /2 )/# +-/$ .ѵ 

78 Metcash /.#-*0+ AnnualҞ$))$' Report 2019 +*-/рш ух  /.#-*0+Ҟ$))$' +*-/рш уц 79 Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш   руѵ $))$'-$.&()" ( )/җ*)/$)0 Ҙ рхѵ *(($/( )/.

- $/-$.& + -/$)"' . . - $/-$.&$./# -$.&/#/*0)/ -+-/42$'')*/( /$/.*'$"/$*).0) -!$))$'$)./-0( )/*-0./*( -*)/-/Ѷ'  $)"/* # -*0+#.)0( -*!&Ҋ/*Ҋ&' . .!*-- /$'./*- .Ѷ2#$#- *)/-/ /.0./)/$''4*!!. //$)"/ -(.) *) $/$*).ѵ !$))$''*..ѵ# -*0+$. 3+*. /*- $/-$.&!-*($/.*+ -/$)"/$1$/$ .җ+-$(-$'4/- -  $1' .Ҙ) !-*($/.!$))$)" # -*0+'.*' . . $./-$0/$*) )/- .Ѷ*!!$ .) 2- #*0.  ,0$+( )/ѵ*)/$)" )/- )/'.- +4' /*- !' /(*1 ( )/. /$1$/$ .Ѷ$)'0 $)" +*.$/.2$/#)&.) !$))$'$)./$/0/$*).Ѷ!*- $") 3#)" /-)./$*).) */# -!$))$'$)./-0( )/.ѵ $)/# *).0( --$  ) 3*) -/$)' . .) /*- !' //# /0-)*1 -*! -/$)./*- .ѵ 0/0- ($)$(0(- )/'.+4' 0) -*+ -/$)"' . ../тп+-$'- .!*''*2.ѷ

# -*0+/- .2$/#'-" )0( -*!0./*( -.) $/$.-*0++*'$4/#/''0./*( -.2#*2$.#/*/- *)- $// -(.-   рш рч )ڦ )ڦ ($/- - 0-$/4*1 $)./Ѷ/# -*0+2$''* )+-*1$.)#'* $/$*)Ѷ2# - ) ѵ. 0- *-+(*$/$!$- 1/$ -*// %0. .. /.*!/# 0./*( -2# - 1 -+*..$' ѵ      $1' .) '*).- (*)$/*- *))*)"*$)".$.) !*-('- 1$ 2*!''') .*0-. 1 -4.$3(*)/#./*( .0-  $/#$)р4 - рчхѵп спцѵп $(+$-( )/'*.. .ѵ !/ -р4 -0/)*/(*- /#)ф4 -. хссѵт хпсѵф -. хшпѵш фхтѵх )ф4җрчѷуѵт%) of the Group’s receivables and loansѵ *- /#ڿ$-( )/+-*1$.$*)- +- . )/.уѵс0-- )/' 1 '*!$(+ хѶ/# /*(($ $!$/( $. ""- "/ ' .  3+ ) $/0- *)/-/ !*-/- +*-/$)" /  рѶушшѵт рѶтцтѵр

 The Group is exposed to credit risk on ‘backҊ/*Ҋback’ arrangements contained within its property leases where Metcash has subleased 0/0- ' . +4( )/.-  $1' 0) -.0Ҋ' . ../тп+-$'- .!*''*2.ѷ +-*+ -/$ ./*- /$' -.ѵ/ -$'' . --)" ( )/.- - "0'-'4- 1$ 2 ) ++-*+-$/ +-*1$.$*).-  ./'$.# 2# ).0# --)" ( )/.-  ( *) -*0.ѵ ! -)*/ рр!*-!0-/# - /$'.ѵ  рш рч )ڦ )ڦ    # - - )*.$")$!$)/*) )/-/$*).*!- $/-$.&2$/#$)/# -*0+ѵ $/#$)р4 - цфѵт ццѵц !/ -р4 -0/)*/(*- /#)ф4 -. стшѵу сушѵс *- $")0-- )4-$.& *- /#)ф4 -. сспѵш сфсѵп # -*0+$. 3+*. /*!*- $") 3#)" !'0/0/$*).*)/-)./$*).) ') .$)- .+ /*!$/.0.$) ..0)$/$) 2 ') ѵ ""- "/ ' . $)*( *)/-/ !*-//# - +*-/$)" /  фтфѵх фцчѵш 3ѵ/- /!/$!*-+'/*/ (. '.'/*/!*ڿс(#/.. './( . -+ -(*$/- +*.$# ) $/$*)Ѷ/# -*0+0) -/& ..*( !*- $")0-- )4/-)./$*).2# )+0-#.$)""** .) . -1$ .ѵ# -*0+ )/ -.$)/* +$/' 3+ ) $/0- *(($/( )/. !*-2- !*- $") 3#)" *)/-/./*()" /# -$.&..*$/ 2$/#)/$$+/ +0-#. *(($/( )/. )*($)/ $)!*- $") # -*0+# )*(/ -$'*(($/( )/.!*-+$/' 3+ ) $/0- /тп+-$'спршѵ 0-- )$ .ѵ  # (*0)/*!!*- $") 3#)" *1 -$.. *))/$$+/ !0/0- +0-#. .$)'$"#/*!0-- )/*) $/$*).$)!*- $")(-& /.Ѷ *(($/( )/.!-*(0./*( -.)  3+ -$ ) ѵ рцѵ  '/ +-/4 $.'*.0- .  A list of the Group’s subsidiaries is included in ++ ) $3) '$./*! ,0$/4Ҋ*0)/ $)1 ./( )/.$.$)'0 $)++ ) $3ѵ рфѵ+$/'()" ( )/ / -$'/-)./$*).) ') .2$/#- '/ +-/$ .–-*0+ For the purpose of the Group’s capital management, capital includes all accounts classified as equity*)/# .// ( )/*!!$))$' position. The Board’s intention is to $)1 ./$)/# 0.$) ..!*-!0/0- "-*2/#) */# -2$. - /0-).0-+'0.+$/'/*.#- #*' -.ѵ рш рч )ڦ )ڦ     $'ѵ / - .ѵ ! -)*/ рс!*-!0-/# -&*!$/..#04-& /рфп($''$*)*!!Ҋ(ڦ / '+)*спрчѶ/# -*0+/.0"0( )су 0) спршѶ/# *-  / -($) /*+4!0''4!-)& рш!$)' $1$ ) *!цѵп )/.+ -.#- ѵConsistent with the Board’s Transations ith related arties – uitaounted investents   ' .- 1 )0  рѶпхчѵс рѶпшуѵч ѵ -#- ."($(-"($4'- (!*ڿ/$**!хп4*0/-+ ) $1$ - !0''4Ѷ/#$.- +- . )/./ "-/ /$(0))* # *- ) ()" ( )/. /*0//*($)/$)++-*+-$/ // ( )/*!$))$'*.$/$*)-/$*.ѵ -/$)// ( )/*!$))$' . #-" . ртѵх рфѵц *.$/$*)-/$*.- '.*imposed under the Group’s banking facilitiesҗ- ! -/*)*/ рпҘѵ ,0$.$/$*)*!.#- .$)%*$)/1 )/0- .) ..*$/ . тѵц тѵу $1$ ) .-  $1  сѵу рѵр )" ( )/(*)$/*-+$/'/#-*0"#/# " -$)"-/$*җ) / /ҝ) / /+'0./*/' ,0$/4Ҙѵ# " -$)"-/$*./тп+-$'спрш)     /$1 '4ѵ .#+*.$/$*)Ҙ- .+) //$1 - +- . )/$)"җ) "ڿҗтѵсҘ (ڿтп+-$'спрч2 - тѵт alanes ith related arties – uitaounted investents   *#)" .2 - ( $)*% /$1 .Ѷ+*'$$ .*-+-* .. .!*-()"$)"+$/' 0-$)"/# 4 -ѵ - -  $1' .–"-*.. рррѵр ррфѵф  -*1$.$*)!*-$(+$-( )/'*.. җуѵуҘ җуѵчҘ   рпхѵц ррпѵц    *).-  $1' –"-*.. Ҋ хѵф -*1$.$*)!*-$(+$-( )/'*.. Ҋ җфѵфҘ  Ҋ рѵп  

80 Metcash /.#-*0+ AnnualҞ$))$' Report 2019 +*-/рш уч  /.#-*0+Ҟ$))$' +*-/рш уш 81 */*/Notes*/ ./*/#./*/#./*/# to !$))$'.//!$))$'.//the!$))$'.// financial ((( )/.)/.)/.statementsҗ*)/$)0җ*)/$)0җ*)/$)0 Ҙ Ҙ Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued *-/#*-/#For*-/# the 4year44 --- ended ) ) ) тп+-$'спр30 тп+-$'спр тп+-$'спр April 2019 шшш For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш   рцѵрцѵрцѵ '/'/'/ +-/4 $.'*.0- +-/4 $.'*.0- +-/4 $.'*.0- .җ*)/$)0.җ*)/$)0.җ*)/$)0 Ҙ Ҙ Ҙ рчѵ #- Ҋ. +4( )/.җ*)/$)0 Ҙ # 2 $"#/ 1 -" $)+0/./*/# 1'0/$*)*!  + -!*-() -$"#/.1'0 /"-)/ / 4) 3/ -)'$) + ) )/.+ $'$./0.$)" ) $/$*)/*/# ) $/$*)/*/# ) $/$*)/*/# *1 *1*1 /-)./$*).Ѷ/# /-)./$*).Ѷ/#/-)./$*).Ѷ/# -*0+- -*0+--*0+- *- *- *- .$")$!$)/$/ .$")$!$)/$/ .$")$!$)/$/ (.$(+$-( (.$(+$-((.$(+$-( )/)/)/ 3+3+3+ ). ).). $)рчѶ 0 $)рчѶ 0$)рчѶ 0 +-$(-$'4/*/# +-$(-$'4/*/#+-$(-$'4/*/# '*..*! '*..*!'*..*! /# *)/ -'**+/$*)+-$$)"(* '- .!*''*2.ѷ $/..0++'4-$/..0++'4-$/..0++'4- '/$*).#$+2$/#-& '/$*).#$+2$/#-&'/$*).#$+2$/#-& . .ѵ#.ѵ#ѵ# $(+$-( $(+$-($(+$-( )/ )/)/ 3+3+3+ ). ).). !/*- !/*-!/*- ininin Metcash’s Metcash’s Metcash’s trading trading trading relationship relationship relationship with with with Dramet Dramet Dramet Holding Holding Holding Pty Pty Pty Ltd, Ltd, Ltd, %*$)/1%*$)/1%*$)/1 )/0- )/0-)/0-   /2 /2/2 ) )) /.#) -& /.#) -&/.#) -& .ѵ .ѵ.ѵ ! ! ! -)*/ -)*/-)*/ тҗ1$$Ҙ!*-!0-/# тҗ1$$Ҙ!*-!0-/#тҗ1$$Ҙ!*-!0-/# -$ -$-$)!*-(/$*)ѵ)!*-(/$*)ѵ)!*-(/$*)ѵ  рш–ср  рч–сп  рц–рш   җҘ җҘ җҘ -)./$*).) ')-)./$*).) ')-)./$*).) ') .2$/#-.2$/#-.2$/#- '/'/'/ +-/$ +-/$ +-/$ ...–––--- )/)/)/ )/$/4)/$/4)/$/4     ڿсѵф ڿтѵп ڿ фѵс 4$ ' ) ршршршѵѵѵ $1$  /*(($/0*//*(($/0*/ /*(($/0*/ .. . -4/$/(-4/$/( -4/$/( /(/( /( -+-+ -+ #/!*#/!*#/!*./(0*./(0*./(0*  #/($.#/($. #/($. (' (.(*$/.(-/4/-+ (' (.(*$/.(-/4/-+ (' (.(*$/.(-/4/-+ /'/' /' 4-4- 4- &!*.'$/&!*.'$/ &!*.'$/  ڿрѵф ڿрѵш ڿсѵп  /- -!&.$ ڿурѵп ڿусѵп ڿтцѵп 4/$'$/'*1 / 3+ 0+*0+-*0+-*- #/!*'#/!*'#/!*' ((*.-((*.-((*.- +/(+/(+/( ))) "()4"()4"()4 &!*(*$/.(&!*(*$/.(&!*(*$/.( +)*+)*+)* ршршрш рчрчрч  4./*1 ./$)" рѶрср рѶрсп рѶрсц )ڦ)ڦ)ڦ )ڦ)ڦ)ڦ сѵптڦ сѵфрڦ сѵфхڦ  / /(-"/ $-+ -#    рѵсцڦ рѵффڦ пѵцсڦ  / /(-"/ 0'$-1 #*-/#*-/#*-/ҊҊ/Ҋ/ / -( -(-( ччѵчхѵхѵх шѵчшѵчшѵч  *)" *)" *)"ҊҊ/Ҋ/ / -( -(-( пѵупѵупѵу пѵчпѵчпѵч  -1$  )  )*)Ҋ(-& /+ -!*-()  *) $/$*). //#  /* /#  "-)/.2 -  )*/ /& ) $)/* *0)/ $) ( .0-$)" !$- 1'0 ѵ -& / *./*./*./ҊҊ Ҋ (+'*4( (+'*4((+'*4( )/ )/)/ пѵспѵспѵс пѵспѵспѵс + -!*-() *) $/$*)...*$/ 2$/#/# "-)/.#1  )- !' / $)/# !$-1'0 ( .0- ( )/ѵ3+ / 1*'/$'$/4$.. *)) #-#-#- Ҋ Ҋ.Ҋ.. +4( +4( +4( )/. )/.)/. пѵфпѵфпѵф пѵфпѵфпѵф evaluation of the historical volatility of Metcash’s share price, particularly over the historical period commensurate with t#  3+ / / -(ѵ  шѵшѵшѵццц ррѵтррѵтррѵт  -!*-() -$"#/.- *)'4 3 -$.' *)/# $-1 ./$)" / ѵ

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($)$)" ### -*0+0-- -*0+0---*0+0-- )/'4#. )/'4#.)/'4#.*)*)*)  /$1/$1/$1  .#-.#-.#- Ҋ Ҋ.Ҋ.. $) $) $) )/$1 )/$1)/$1 .# .#.# ( (( !*- !*-!*- (+'*4 (+'*4(+'*4 . ..ҊҊ/#Ҋ/#/#  *)"  *)" *)" -( ) -( )-( ) )/$1 )/$1)/$1 җ  Ҙ.# җ  Ҙ.#җ  Ҙ.# ( (( ѵ ѵ-)/.0) ѵ-)/.0) -)/.0) - -- # ( )(   ./$)" /  җ)0( -Ҙ җ)0( -Ҙ *)/-/0''$!  /#/#/# .# .#.# ((( - -- .0%.0%.0% / //tototo two two two performance performance performance conditions: conditions: conditions: Relative Relative Relative Total Total Total Shareholder Shareholder Shareholder Return Return Return (‘RTSR’) (‘RTSR’) (‘RTSR’) and and and ) ) ) -'4$)" -'4$)"-'4$)"-)$)".+-)$)".+-)$)".+ -#- -#--#-        CompoundCompoundCompound Annual AnnualAnnual Growth GrowthGrowth Rate RateRate (‘ (‘(‘EPSEPSEPS CAGR’) CAGR’)CAGR’) over overover a a a /#- /#-/#- Ҋ Ҋ4Ҋ4 4 - --+++ -$* .+ -$* .+-$* .+ $!$0) $!$0) $!$0) - -- #"-)/ѵ #"-)/ѵ#"-)/ѵ### "-)/.- "-)/.-"-)/.- '.*.0% '.*.0%'.*.0% //* //*//*  рш–ср рф0"0./спср сѶсуцѶпчт Ҋ с4 -у(*)/#. .. . -1$ -1$-1$ *) $/$*).Ѷ0.0 *) $/$*).Ѷ0.0*) $/$*).Ѷ0.0''4!-*("-)/ /''4!-*("-)/ /''4!-*("-)/ / /*/# /*/#/*/#  /  / / *!/# *!/#*!/# ''*/$*)*!.#- ''*/$*)*!.#-''*/$*)*!.#- .ѵ .ѵ.ѵ  рч–сп рф0"0./спсп сѶтфпѶчфт Ҋ р4 -у(*)/#.   рц–ршҗҘ рф0"0./спрш рѶштуѶшсц Ҋ у(*)/#. /тп+-$'спрш/тп+-$'спрш/тп+-$'спршѶ/#Ѷ/#Ѷ/# - - - - -- / //#-#-#-  *0/./) $)""-)/.0) *0/./) $)""-)/.0) *0/./) $)""-)/.0) -/# -/#-/#   .#   .#  .# ( (( Ѷ/# Ѷ/#Ѷ/#   җрц  җрц  җрцҊҊҊршҘршҘршҘѶѶ  җрчѶ  җрч  җрчҊҊҊспҘспҘспҘ)   җрш)   җрш)   җршҊҊсрҘҊсрҘсрҘѶѶѶ */'*0/./) $)"//# - +*-/$)" /   хѶфтсѶчхт Ҋ  '$/(0 /( )4*'+) ($ "($($) - . 4*'+)  #/ */ 4'(* / %0. ڿ/ шп ''4 1 ./-/$ /* + / ) $. 3+ +'  Ҙ #  рцҊрш..ѵ.ѵѵ җ -$* -$* + ++ -$*)-!*-() -!*-()-+ -!*-(-+ -+ Ҋ Ҋ4Ҋ4 4 -#//(-#//( -#//( - - - !!$ !!$ !!$  -#-#-#/"($/(/"($/( /"($/( . . . -+-+ -+ - -- рф0"0./спршѵ# . 1 ./ + -!*-() -$"#/.2$'' *)1 -/ /*.#- .) 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82  Metcash /.#-*0+ /.#-*0+/.#-*0+ AnnualҞ$))$'Ҟ$))$'Ҟ$))$' Report 2019 +*-/ +*-/+*-/ршршрш фпфпфп  /.#-*0+Ҟ$))$' +*-/рш фр 83 Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued For the year ended 30 April 2019 For the year ended 30 April 2019 *-/# 4 - ) тп+-$'спрш *-/# 4 - ) тп+-$'спрш   рчѵ #- Ҋ. +4( )/.җ*)/$)0 Ҙ ршѵ  )!*-(/$*)- '/$)"/* /.# $($/ җ/# - )/*(+)4Ҙҗ*)/$)0 Ҙ 4/ -(.) *) $/$*). +$/'- 0/$*) ($ хппѵп ($''$*)Ѷڦ */ (*$''$) сѶффрѵрڦ 4 '+$/  -  $/. .#0 /$*) /* -0 ' -+$/   -/**& )4 0)- )/ *(+  ) рчѶ /# .# -/#  / 0) 2 - $..0 ) -$"#/.)+ -!*-( 4Ҋ. //'/0$,  -. ) #. 1* #/#/2$ /$*.../#"$- ()-*!- +'' 3 0/$1 .)  )$*-)" -. -!*-() $"#/.')җ$"#/.')Ҙѵ0''4+$ *- $)-4.#- .$..0 0) -/#$.+')-)& ,0''4 *- ) 2$/#. /$*)сфч*!/#  ѵ# - 0/$*)2.''*/ $)!0''/*/# 0(0'/ '*.. .*0)/$) 2$/#''*/# - 3$./$)"!0''4+$ *- $)-4.#- .$)- .+ /*!1*/$)")  $1$ ) -$"#/.ѵ /# - )/*(+)42$/#)*$(+/*)/# ) /.. /.*! $/# -/# - )/*(+)4*-/# -*0+ѵ)*).*'$ /$*)Ѷ/# .#- +$/' )4ѵ- )/*(+ '*!/#+$/ -.# //# - 1$. рѶрршѵт($''$*)/*- !'ڦ4 /.%0 .0+2*- #/!*  # & 4/ -(.*!/# $"#/.')$)'0 ѷ '*. -*0+ • # + -!*-()  -$"#/ $. ) )/$/' ( )/ /* -  $1   !0''4 +$  *- $)-4 .#-  $) /#  *(+)4 *) / -(. )  *) $/$*). # - )/*(+)4#.+-*1$ "0-)/ ..+-/*!/# '*. -*0+--)" ( )/.. $.'*. $)++ ) $3ѵ / -($) 4/# *- Ѷ$)'0 $)"1 ./$)"*) $/$*).'$)& /*. -1$ ) + -!*-() *1 -/#- Ҋ4 -+ -$* Ѹ •  -!*-() -$"#/.2#$# *)*/1 ./- !*-! $/ Ѹ  •  -!*-() -$"#/.- *!! - /)**.//*+-/$$+)/.Ѹ •  -!*-() -$"#/. *)*/--41*/$)"*- $1$ ) -$"#/.Ѷ#*2 1 -.#- .''*/ 0+*)1 ./$)"*!+ -!*-() -$"#/.2$''--4 спѵ 0 $/*-.- (0) -/$*) /# .( -$"#/..*/# -*- $)-4.#- .Ѹ  • - $)-$'4Ѷ$)/#  1 )/*! ../$*)*! (+'*4( )/Ѷ0)1 ./ + -!*-() -$"#/.2$'''+. Ѹ#*2 1 -Ѷ/#$.$..0% //**-  рш рч ڦ ڦ '$ +. -* 4) 0) $'$/4Ѷ - /$- ( )/Ѷ -$.  ) /# $)" '0 . $))0(./$-  $) $.  3 - 4# (Ѷ 2#$(*$/ -.$ $-0(./) .Ѹ    • # )/ ./$)"+ -!*-() *) $/$*).Ѷ/# *- #.!0'' $.- /$*)$)- '/$*)/*$/.'0'/$*)) /*$)'0 *- 3'0 $/ (.$! (*0)/.-  $1 *- 0 ) -  $1' 40./-'$!*-ѷ   ++-*+-$/ Ѷ$)'0 $)"/* // -- !' /.#- #*' - 3+ //$*).*-()" ( )/+ -!*-() Ѹ Ҋ)0 $/*-- 1$ 2*!/# !$))$'.// ( )/.*!/#  )/$/4) )4*/# - )/$/4$)/# -*0+ рѶцчпѶппп сѶпттѶппп • Some or all of a participant’s performance rights may vest even if a performance condition has not been satisfied, if, using $/.    $.- /$*)Ѷ/# *- *).$ -./#//* *.*2*0'  $)/# $)/ - ./.*!/# -*0+Ѹ)  /# -. -1$ .$)- '/$*)/*/#  )/$/4) )4*/# - )/$/4$)/# -*0+   • !/# - $.#)" $)*)/-*'*!/# -*0+Ѷ/# *- - /$).!0'' $.- /$*)/*1 ./*-'+. .*( *-''+ -!*-() -$"#/.ѵ Ҋ/3*(+'$) )  1$.*-4. -1$ . трчѶппп уцсѶппп Ҋ*/# - 1$.*-4. -1$ . Ҋ спцѶппп   трчѶппп хцшѶппп ршѵ )!*-(/$*)- '/$)"/* /.# $($/ җ/# - )/*(+)4Ҙ  сѶпшчѶппп сѶцрсѶппп рш рч    -#.- +."($(- срѵ )ڦ )ڦ    // ( )/*!!$))$'+*.$/$*)   # !*''*2$)"- !' /./# $)*(  /0. $)/# .$)  $'0/  -)$)".+ -.#- җҘ*(+0//$*).ѷ 0-- )/.. /.–(*0)/.-  $1' !-*(.0.$ $-$ . рѶсфшѵп рѶфтфѵф  рш рч )ڦ )ڦ -$ . Ҋ шурѵр$ .$.. /.–$)1 ./( )/.$).00-- )/Ҋ(* */'.. /. рѶсфшѵп сѶуцхѵх    0-- )/'$$'$/$ .–'*).+4' /*.0.$ $-$ . Ҋ җсѶпхсѵфҘ -)$)".0. $)'0'/$)".$)  $'0/     /.. /. рѶсфшѵп уруѵр  /+-*!$/ҝҗ'*..Ҙ//-$0/' /**- $)-4 ,0$/4#*' -.*! /.# $($/  ршсѵч җручѵсҘ     *)/-$0/  ,0$/4җ)*/ рсҘ ффшѵс хппѵп # !*''*2$)"- !' /./# .#-  /0. $)/# .$)  $'0/ *(+0//$*).ѷ 0(0'/ '*.. . җрѶсхфѵуҘ җрѶсхфѵуҘ  рш рч -*!$/- . -1  рѶшхпѵу рѶпцфѵш 0( - 0( - #- Ҋ. +4( )/.- . -1  уѵч тѵх    */' ,0$/4 рѶсфшѵп уруѵр  $"#/ 1 -" )0( -*!*- $)-4.#- .0. $)'0'/$)".$ шсчѶфччѶхчр шцфѶхурѶчцх    !! /*! $'0/$1 . 0-$/$ . тѶттчѶхшп Ҋ // ( )/*!*(+- # ).$1 $)*(     $"#/ 1 -" )0( -*!*- $)-4.#- .0. $)'0'/$)" $'0/  штрѶшсцѶтцр шцфѶхурѶчцх $1$ ) .-  $1 !-*(.0.$ $-$ . рѶрсрѵу счѵт  /# -/-)./$*). Ҋ Ҋ  /+-*!$/!*-/# 4 - рѶрсрѵу счѵт //# - +*-/$)" / ѶхѶфтсѶчхт+ -!*-() -$"#/.җрчѷуѶххпѶпцхҘ2 - *0/./) $)"Ѷ*!2#$#тѶршуѶрцтҗрчѷуѶххпѶпцхҘ2 - )*/ */'*(+- # ).$1 $)*( !*-/# 4 -Ѷ) /*!/3 рѶрсрѵу счѵт $)'0  $) /#  '0'/$*) *! $'0/   . /# 4 -  )*/ $'0/$1  !*- /#  + -$* . +- . )/ ѵ  ! - )*/  рч !*- (*-  /$'. *0/ + -!*-() -$"#/.ѵ  )1 ./( )/$).0.$ $-4)  $1$ ) $)*(    /$*)/4&.*)*-+*--4Ѷ$$ .$.0 сѶпхсѵф($''$*)!-*($/.2#*''4Ҋ*2)ڦ!*.(*$/0$./-$  $1 )4-- )/*(+ ршѶ/#( '$(*/(*$''$)шурѵрڦ4(*0)/*!/# $)1 ./( )/--4$)" /#0 /*- ++'$''4-/$0/$*).2 - +$./-$  &.*)Ҙѵ#җ$ /$)$ *( ѵ$) ) $1$ . *- .-рѶрсрѵу($''$*)2ڦ!*/(0*)'0 $. - #/ (  -*!$/- . -1  # - )/*(+)4 ./'$.# +-*!$/- . -1 $)рц2$/#$)$/.. +-/ !$))$'.// ( )/.Ѷ$)*- ) 2$/#/# *(+any’s (*$''$)фшѵрڦ!* ( $1$ /# рш$)/ -$( )хчѵт($''$*)ڦ!* ( $1$ '-Ѷ/# рч!$) '4$)0-- )/!$) ѵ0-$)"/#(*$/0/$/.(* .&204-& /*(+*) )/*!/# *!!Ҋ( ) $1$ рпшѵф($''$*)ڦ #/$/$*)Ѷ ) ѵ -1 . -/$!*-+ #/)*-! $+ ( 0-*. - 2 ($ /- ( "/$!*-+ #/!*(*$''$)рѶрсрѵуڦ-Ѷ '4$)0-- )/!$) *!/# ѵ-$*-/*/#  ) -1 . -/$!*-+ #/#"0*-#/ $+ ( 0-*. рш2.- $/ $)/*/# +-*!$/- . -1 ѵ 

Metcash Annual Report 2019 84  /.#-*0+Ҟ$))$' +*-/рш фс  /.#-*0+Ҟ$))$' +*-/рш фт 85 Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш   ссѵ *)/$)" )/'$$'$/$ . ++ ) $3Ҋ$))$'- +*-/$)"#)" .!-*(/#  *+/$*)*!) 2*0)/$)"./) - .  рш рч  .- )*/./.2$/#0рф 1 )0 !-*(*)/- ))./-0( )/. '$)/$*)*!ш$)++'$')$/$ җрҘ )ڦ )ڦ    0-$)"/# 0-- )/+ -$* Ѷ/# -*0+$)$/$''4++'$ ш ) рф ѵ# !$))$' )&"0-)/ ./*/#$- +-/$ .$)- .+ /*!+-*+ -/4' . *'$"/$*). рхѵч ршѵу +*.$/$*)) - .0'/.!*-рч2 - - /-*.+ /$1 '4- .// 0+*)/# $)$/$' *+/$*)*!рф2#$'.//# !$))$'+*.$/$*)./рч2.)*/ )&"0-)/ .$)- .+ /*!*-&*1 - сѵц сѵш - /-*.+ /$1 '4- .// !*-ш2#$#2. *+/ $)ршѵ# !*''*2$)"/' ..#*2/#  %0./( )/.- *")$. !*- #$) $1$ 0''$) $/ (ѵ #  %0./( )/.-  3+'$) $)(*-  /$' '*2ѵ

$))$'"0-)/ *)/-/. # $(+/*)/# рч.// ( )/*!!$))$'+*.$/$*)2..!*''*2.ѷ # -*0+#."-)/ !$))$'"0-)/ *)/-/- '/$)"/*/# )&'*)*!%*$)/1 )/0- Ѷ *( /4 / ѵ) -/# *)/-/Ѷ  /# )&#./# -$"#//*- ,0$-  /.#/*- +4/#  /0) - -/$)+- .-$ $-0(./) .*! !0'/ѵ#  ./$(/ *!/#  ш рф %0./( )/. рч  %0./( )/.  уцѵф($''$*)Ҙѵ рчڦухѵф($''$*)җрчѷڦ.$Ѷ $.Ѷ$! 3 - /(-0" #/!*/ +. -($ '4+/(0*))0)3$) .- +*-/  җ*/ җҘҘ җ*/ җҘҘ - .//  )ڦ )ڦ )ڦ )ڦ  -$! #утѵх($''$*)Ҙѵڦутѵх($''$*)җрчѷڦ(  1# ' 2*0'4(*0)/+ тп+-$'спршѶ/#/ .$- 3 (  /(-0" #/       $'$/4ѵ''$$)!$). *")$. $.- )рѵф($''$*)Ҙڦрѵч($''$*)җрчѷڦ.2 / "($/-*+ - #///-/(* /(-0"'$(($! #/!* 0'1      0/*+/$*). - -  $1' .) '*). рѶсптѵц җсѵсҘ сѵх рѶспуѵр  ! -)*/ ру!*- /$'.*!+0/*+/$*).*0/./) $)"/') .# / / ѵ )1 )/*-$ . цчуѵу Ҋ җтпѵтҘ цфуѵр .. /.# ' !*-.'  ррѵч Ҋ җпѵфҘ ррѵт  /# -0-- )/.. /. утфѵч Ҋ Ҋ утфѵч стѵ 0. ,0 )/ 1 )/. 0-- )/.. /. сѶутфѵц җсѵсҘ җсчѵсҘ сѶупфѵт      /# -/#)(// -. $.'*. $)/#$.- +*-/Ѷ/# - 2 - )* 1 )/./#/#1 *0-- !/ -/#  ) *!/# !$))$'4 -/#/2*0'   / ! -- /3.. /. рпшѵц пѵц ртѵс рстѵх (/ -$''4!! //# - +*-/ - .0'/.*-2*0' - ,0$-  $.'*.0- $)/#$.- +*-/ѵ -*+ -/4Ѷ+')/)  ,0$+( )/ стхѵц Ҋ җсрѵсҘ срфѵф )/)"$' .. /.) "** 2$'' чрчѵу Ҋ җсхѵрҘ цшсѵт  /# -)*)Ҋ0-- )/.. /. ррчѵф Ҋ Ҋ ррчѵф  *)Ҋ0-- )/.. /. рѶсчтѵт пѵц җтуѵрҘ рѶсушѵш        тѶцршѵп җрѵфҘ җхсѵтҘ тѶхффѵс      )*( /3+4'  суѵш Ҋ җшѵуҘ рфѵф /# -'$$'$/$ . сѶтпфѵф Ҋ Ҋ сѶтпфѵф      сѶттпѵу Ҋ җшѵуҘ сѶтсрѵп       рѶтччѵх җрѵфҘ җфсѵшҘ рѶттуѵс            *)/-$0/ ) */# - ,0$/4 хппѵп Ҋ Ҋ хппѵп  /$)  -)$)". цчпѵх җрѵфҘ җфсѵшҘ цсхѵс /# -- . -1 . җпѵцҘ Ҋ Ҋ җпѵцҘ - )/$)/ - ./ рѶтцшѵш җрѵфҘ җфсѵшҘ рѶтсфѵф *)Ҋ*)/-*''$)"$)/ - ./. чѵц Ҋ Ҋ чѵц    рѶтччѵх җрѵфҘ җфсѵшҘ рѶттуѵс  

86 Metcash /.#-*0+ AnnualҞ$))$' Report 2019 +*-/рш фу  /.#-*0+Ҟ$))$' +*-/рш фф 87 Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш For*-/# the year4 - ended ) 30 тп+-$'спр April 2019 ш   ++ ) $3Ҋ$))$'- +*-/$)"#)" .!-*(/#  *+/$*)*!) 2*0)/$)"./) - . ++ ) $3Ҋ$))$'- +*-/$)"#)" .!-*(/#  *+/$*)*!) 2*0)/$)"./) - .   $)"'4Ѷ/# рч *-/$1$/$ .ѵ/$)"/$1$/$ ./**+ -$)$)1 ./$)" .#0.рсѵт($''$*)*!ڦ!*(*$/$!$..' - #/($ /'*+/$*)*!рф- .0  .!*''*2.ѷ #.рч2-*! )*($ $1.( # -+)*!*/( ) //. #/(*/+)$ #  .// ( )/*!.#!'*2.2.- .// /*- !' //# . '..$!$/$*)#)" .ѵ рф  рч  %0./( )/. рч #  *+/$*)*!ш $ )*/#1 )4$(+/*)/# .// ( )/*!.#!'*2.ѵ .- +*-/  җ*/ җҘҘ - .//   ./( ))./-0 '$)Ҙш$)җ )ڦ )ڦ )ڦ      ш- +' /# +-*1$.$*).*!ртш$)- '/$*)/*!$))$'$)./-0( )/.) # " *0)/$)"ѵ ' .- 1 )0  руѶухтѵц җсѶпсрѵфҘ рсѶуусѵс  The key change to the Group’s financial report arising from this standard is in relation to the impairment of finan$' .. /. җ($)'4 '*).)  *./*!.' . җртѶрцфѵхҘ сѶпспѵт җррѶрффѵтҘ -  $1' .Ҙѵш !! /$1 '4(*1 from an ‘incurred losses’ model to an ‘expected losses’ model, which requires a forwardҊ'**&$)".. ..( )/*! -*..+-*!$/ рѶсччѵр җрѵсҘ рѶсчхѵш +*/ )/$' !0'/ 1 )/.) '*.. .*1 -/# '$! *!/# . .. /.ѵ      /# -$)*(  рпрѵс Ҋ рпрѵс #  *+/ion of AASB 9 resulted in an increase of $2.2 million in the impairment allowance against the Group’s trade receivables and l*).ѵ#  $./-$0/$*)*./. җучхѵфҘ җчѵхҘ җушфѵрҘ $)- . $)''*2) 2. $/ /*'*.$)"рч- /$)  -)$)".Ѷ) /*!/3ѵ*(+-/$1 !$"0- .#1 )*/ )- .// ѵ  ($)$./-/$1 *./. җфххѵрҘ ррѵц җффуѵуҘ  җҘрф 1 )0 !-*(*)/-/.2$/#0./*( -. #- *!+-*!$/*! ,0$/4Ҋ*0)/ $)1 ./( )/. пѵх Ҋ пѵх рф ./'$.# !$1 Ҋ./ +(* '/**0)/!*-- 1 )0 -$.$)"!-*(*)/-/.2$/#0./*( -.ѵ) -рфѶ )/$/$ .- - ,0$- /* 3 -$.  $")$!$)/$/ (. җтчпѵрҘ Ҋ җтчпѵрҘ (*- %0 "( )/$) 1 '*+$)"- 1 )0 - *")$/$*)+*'$$ .Ѷ/&$)"$)/**).$ -/$*)''/# - ' 1)/!/.) $-0(./) .2# )++'4$)" #./ + $)) *./. җтрѵпҘ Ҋ җтрѵпҘ *!/# (* 'ѵ -*!$/ !*- $)*( /3 җцтѵчҘ рѵш җцрѵшҘ  )*( /3 3+ ).  җцсѵшҘ җпѵхҘ җцтѵфҘ # -*0+- 1$. $/.*0)/$)"+*'$4$)'$) 2$/#/# - ,0$- ( )/.*!рфѵ# & 4#)" .-$.$)"!-*(/#$.- 1$.$*)- .!*''*2.ѵ ! - -*!$/!*-/# + -$*  җрухѵцҘ рѵт җруфѵуҘ ++ ) $3ѵрц!*-.0((-4*!/# - 1$. +*'$4ѵ     җѵрҘ'..$!$/$*)*!#-" Ҋ/#-*0"#) */# -/-)./$*).  /+-*!$/!*-/# + -$* $.//-$0/' /*ѷ    In addition to warehouse purchases, customers purchase goods through the Group’s chargeҊ/#-*0"#+'/!*-() #1 /# . "** . '$1 -  $- /'4 ,0$/4#*' -.*!/# +- )/ җрушѵфҘ рѵт җручѵсҘ /*/# (!-*(.0++'$ -.ѵ# -*0+ -).(-"$)*)/# . .' .!*-+-*1$ $)"+-*0- ( )/Ѷ-*..Ҋ *&$)") . //' ( )/. -1$ .ѵ# -*0+'.* *)Ҋ*)/-*''$)"$)/ - ./. сѵч Ҋ сѵч  -.- $/-$.&*)/# -  $1' .!-*(/# . .' .2$/#'$($/ - *0-. /*.0++'$ -.ѵ  җрухѵцҘ рѵт җруфѵуҘ      ) -/# +- 1$*0.*0)/$)"./) - Ѷ /.#.. .. $/. '!.+-$)$+'$)/# . /-)./$*).Ѷ 0 ($)'4/*/# - / )/$*)*!- $/ -$.&ѵ */'*(+- # ).$1 $)*( !*-/# + -$* $.//-$0/' /*ѷ   AASB 15 introduced revised guidance in relation to the ‘principal vs. agent’ assessment criteria, placing more emphasis on s0./)/$1 *)/-*'*1 - /# "** . !*- /-).! -/*/# 0./*( -Ѷ) )**).$ -/$*)$."$1 )/*/# - / )/$*)*!- $/-$.&ѵ ,0$/4#*' -.*!/# +- )/ җручѵхҘ рѵт җруцѵтҘ  *)Ҋ*)/-*''$)"$)/ - ./. сѵч Ҋ сѵч # -*0+- 1$ 2 $/.*0)/$)"+*'$4$)'$"#/*!/# ) 2"0$ ) )  / -($) /#/$/ * .)*/ -(/ -$'' 1 '*!$)1 )/*-4-$.&$)#-" Ҋ  җруфѵчҘ рѵт җрууѵфҘ /#-*0"#/-)./$*).Ѷ./# .0++'$ -$.+-$(-$'4- .+*).$' !*-!0'!$''$)"/# *- -ѵ ) $/$*)Ѷ/# -*0+" ) -''4#.'$($/ $)1*'1 ( )/*-  $.- /$*)$) ./'$.#$)"+-$ .!*-/# "** .ѵ -)$)".+ -.#- //-$0/' /*/# *- $)-4 ,0$/4#*' -.*!/# *(+)4  *- $)"'4Ѷ/# -*0+- 1$. $/.*0)/$)"+*'$4) .. .. $/. '!.)" )/$)#-" Ҋ/#-*0"#/-)./$*).ѵ.- .0'/Ѷ#-" Ҋ/#-*0"#.' .   (  рѶшспѵф ($''$*) $) - 1 )0ڦ !*  . -  ($  /')"  - .0# .$.ѵ #$.  "-*.. ) *)/# - /#Ѷ -.$. ($"-) / (  (*  /-*+ -   ''2$      *$- + #/-*!/$!*-+/ ()*-  ( рпрѵп($''$*)$)- 1 )0ڦ!* . - ($ /'/$*)*!рф- .0++'$$/$*)Ѷ ) 0-$)"рчѵ ' .*./*!.. $) - $)" *-- .+*)  )/.Ҙ  җрфѵтҘ пѵр җрфѵсҘ- җ-)$)".+ -.# .$Ҋ Ҋ $'0/  -)$)".+ -.#- җ )/.Ҙ  җрфѵтҘ пѵр җрфѵсҘ *-- .+*) $)" - . $)*./*!.' .) */# - 3+ ). . 0-$)"рчѶ- '/$)"/* -/$)*/# -$)*( $/ (.ѵ# . +- . )//$*)#)" .# )*  $(+/*)) /$)*( ѵ The impact on the Group’s retained earnings as at тп+-$'спрцѶтп+-$'спрч) р4спрч2..!*''*2.ѷ  җѵсҘ*0)/$)"!*-0./*( -- / .) $) )/$1 .  спрч спрц # -*0++-*1$ .1*'0( /-$) )*)Ҋ1*'0( /-$- / .) $) )/$1 ./*0./*( -.$)*- -/*.0++*-//# .0++'4- '/$*).#$+ѵ -/$)0+!-*)/ ртч ) ртх!*$- /$-(*$/$("* - #// )4 #/ - #2 .$'/$+4'.0*$1 -+ - 2. 1$/( ($ )ڦ )ڦ          ѵ# +$/'$. $) )/$1 .2 - /# )(*-/$. *1 -/#  ./$(/ '$! *!/# .0++'4- '/$*).#$+ѵ  /$)  -)$)".Ѷтп+-$'җ.+- 1$*0.'4- +*-/ Ҙ    цчпѵх җчцѵцҘ  #)" .-$.$)"!-*(/# ++'$/$*)*!рфҗ*/ җҘҘ    җцфѵфҘ җццѵуҘ  рф $)/-* 0   revised guidance which places a stronger emphasis on ‘control’ and ‘enforceability’ over performance obligations within *)/-/.2$/#0./*( -.ѵ# -*0+- 1$ 2 $/.*0)/$)"+*'$4$)'$"#/*!/#$."0$ ) )  / -($) /#/ -/$))*)Ҋ1*'0( /-$0./*( - 3$(+/*!/# *1     ссѵх стѵс $) )/$1 .2 - )*/+$/'$.' 0) -/# ) 2./) - Ѷ./# 0) -'4$)".0++'4*)/-/. $ )*/*)/$).0!!$$ )/'4 )!*- ' + -!*-()   /$)  -)$)".Ѷтп+-$'җ- .// Ҙ    цсцѵц җрурѵшҘ *'$"/$*).ѵ #)" .-$.$)"!-*(/# ++'$/$*)*!шҗ*/ җҘҘ    җсѵсҘ Ҋ  3$(+/*!/# *1     пѵц Ҋ *- $)"'4Ѷ /#  -*0+ - 1$.  $/. *0)/$)" +*'$4 !*- 0./*( - $) )/$1 . /* '$") /#  $)*(  .// ( )/ - *")$/$*) 2$/# /#  )!*- '   /$)  -)$)".Ѷр4җ- .// Ҙ    цсхѵс җрурѵшҘ *'$"/$*).2$/#$)/# *)/-/.ѵ# - 0./*( -$) )/$1 .- +-*1$ 2$/#*0/.0!!$$ )/ )!*- $'$/4Ѷ*- $)-$'4/#-*0"#'2&'0. .Ѷ/# .  - - *")$. . 3+ ). .2# )+4' ѵ     !* . -($( (/тп+-$'спрц-)$)".  $)3Ҙ/*- / !*- /учѵт($''$*)җڦ!*/( )/.%0 (($ /'0. 4-$'*+"($/(0* #/*/(*$.1$ - # 3ѵ !*- /тѵр($''$*)/*рч) /+-*!$/ڦ 

88 Metcash /.#-*0+ AnnualҞ$))$' Report 2019 +*-/рш фх  /.#-*0+Ҟ$))$' +*-/рш фц 89 Notes*/ ./*/# to the!$))$'.// financial ( )/.statementsҗ*)/$)0 Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( )/.җ*)/$)0statements Ҙcontinued For the year ended 30 April 2019 For the year ended 30 April 2019 *-/# 4 - ) тп+-$'спрш *-/# 4 - ) тп+-$'спрш  ++ ) $3Ҋ$))$'- +*-/$)"#)" .!-*(/#  *+/$*)*!) 2*0)/$)"./) - . ++ ) $3–0((-4*!.$")$!$)/*0)/$)"+*'$$ .  җѵтҘ*)Ҋ1*'0( /-$.0++'$ -$)*(     # *1 ./) - .- )*/ 3+ / /*#1 .$")$!$)/$(+/ # -*0+'.*- 1$ 2 $/.*0)/$)"+*'$4!*- -/$)+-*(*/$*)') */# -/ "*-$ .*!.0++'$ -$)*( /* / -($) 2# /# -/# . - +- . )/ on the Group’s financial statements in the year of their initial # !$))$'.// ( )/.- " ) -'+0-+*. !$))$'- +*-//#/ $./$)/) . +-' . -1$ ./#/2*0' !''2$/#$)/# .*+ *!рфѵ#$' /# 0) -'4$)"*)/-/.- 1-$' ) *(+' 3Ѷ/# -*0+ ++'$/$*)ѵ #.  ) +- +-  $) *- )  2$/# /#  - ,0$- ( )/. *! /#  / -($) /#/(/ -$''4''.0++'$ -$)*( $.'$)&  *)*($''4/*/# +0-#. +-$ *!$)1 )/*-4ѵ   ) 0./-'$)*0)/$)"/) - .) */# - .- .0'/Ѷ/# -*0+- 1$. $/.*0)/$)"+*'$4/*'$")''.0++'$ -$)*( 2$/#/# +0-#. *!$)1 )/*-4Ѷ-/# -/#)/# + -!*-() *! 0/#*-$//$1 +-*)*0) ( )/.*!/# 0./-'$)*0)/$)"/) - .     +-*(*/$*)'*-*/# -/$1$/$ .ѵ# ( .0- ( )/*!.*( *(+*) )/.*!.0++'$ -$)*( - ,0$- .$")$!$)/()" ( )/%0 " ( )/)  ./$(/$*)ѵ *- ѵ   ($/ -"($( +**/3Ҙ !*- /сшѵр($''$*)җڦ!*/( )/.%0 (($ /'0. - ( )*($- $'0++.!*(*$/$("* -!*"($)$/ #/ /+)$.# "(#.$# '$(($!  / $'*.(*  #/  .$-+)* ./( ) //. '$(($!  # /.*'$-*/.$# #/"($.0 - )+- + 1/ ( )/.#'./$)3ѵ # !$) !*- /рѵс($''$*)/*рч) /+-*!$/ڦ!* . -  (тп+-$'спрц/.."($(- .$. 3 +/ !*- -$1/$1  !$))$' $)./-0( )/. )  .#- Ҋ.  .// ( )/.*! /.# $($/ ) $/.*)/-*''  )/$/$ .!*-/# 4 - җсҘ./$(/ $(+/*!$)$/$' *+/$*)*!рх . .$)сп +4( )/.2#$#- ( .0- /!$-1'0 ѵ )  тп +-$' спршѵ  ! - ++ ) $3  !*-  '$./ *! .$")$!$)/   *)/-*''  )/$/$ .ѵ #  !$))$' .// ( )/. -  +- . )/  $) 0./-'$) *''-. )  '' рх $.++'$' /*/# -*0+ !! /$1 сп) 2$''.0+ -. 0-- )/*0)/$)"- ,0$- ( )/.$)- '/$*)/*' . .ѵ#$'.//# -*0+   //.  .рппѶппп 0)' ..*/# -2$ڦ /. - (  #/ */ (0*-  - . 0'1 #..0./)/$''4*(+' / $/.+- '$($)-4$(+' ( )//$*).. ..( )/*!/# ) 2./) - Ѷ -/$)/ #)$') %0 "( )/'.+ /.*!/# - 1$.  *)/-*''  )/$/$ . -  '' /#*.  )/$/$ . *1 - 2#$# /#  -*0+ $. 0) -/# *+/$*)1$'' /*/# *(+)40) - *-+*-/$*). *0)/$)"+*'$4- ($)*+ )2#$#*0' #1 (/ -$'$(+/*)/#  ./$(/ . $.'*.  '*2*) !$)'$. ѵ0% //*)4 %0./( )/./#/ 3+*. /*Ѷ*-#.-$"#/./*Ѷ1-$' - /0-).!-*($/.$)1*'1 ( )/2$/# )./-0( )/спрхҝршрѵ# *(+)4$.) )/$/4/*2#$#/# ' "$.'/$1  may arise from these outstanding matters, the key financial effects of the Group’s adoption of the n 2./) - -  3+ / /* .!*''*2.ѷ /#  )/$/4) #./# $'$/4/*!! //#*. - /0-)./#-*0"#$/.+*2 - $)./-0( )/++'$ .ѵ  *1 -/#  )/$/4ѵ  җҘ-).$/$*)( /#*  #  0-- )/ !$))$' 4 - *(+-$. . /#  фсҊ2 & + -$*  /#/ The Group has elected to adopt the ‘modified retrospective’ option of applying the new standard, which will result in compara/$1  !$))$' *(( ) *)тп+-$'спрч)  ) *)сч+-$' спршѵ# +-$*- $)!*-(/$*))*/ $)"1$'' !*-ршѵ *2 1 -Ѷ/# -*0+ 3+ /./* ' /*+-*1$ .0++' ( )/-4$)!*-(/$*)in the analysts’ presentation #  ,0$.$/$*) *! *)/-*''  )/$/$ . $. *0)/  !*- 0.$)" /#  !$))$'4 -*(+-$. /# фсҊ2 &+ -$* /#/*(( ) *)р4 0-$)"/# /-).$/$*)+ -$* /*-$ " /# !$))$'.// ( )/. /2 )*/#./) - .ѵ +0-#. ( /#* *!*0)/$)"ѵ# +0-#. ( /#* *!*0)/$)" спрц)  ) *)сш+-$'спрчѵ  $)1*'1 . ''*/$)" /#  *./. *! /#  0.$) .. *($)/$*) /* /#   җҘ /.#Ҋ*0+$ +-*+ -/$ . ,0$.$/$*) / !$-1'0 *!) /.. /.,0$- Ѷ$)'0 $)"$)/)"$'  . #*' +-*+ -/$ .*0+$ 4/# -*0++-$(-$'4$)'0  $./-$0/$*) )/- .Ѷ2- #*0. .Ѷ*-+*-/ ./*- .) *!!$ .ѵ*-/# . +-*+ -/$ .Ѷ   .. /.Ѷ*)/$)" )/'$$'$/$ .) *)/$)" )/*).$ -/$*)ѵ /# ') .# /2$''  %0./ /*- *")$.  +- $/$)"-$"#/Ҋ*!Ҋ0. .. /) )..*$/ ' . '$$'$/4ѵ# ' . '$$'$/42$'' ( .0-   //# ) /+- . )/1'0 *!!0/0- +4' .0) -/# ' . Ѷ$)'0 $)"*+/$*)'- ) 2'+ -$* .Ѷ2# - /# -*0+.. .. ./#//# +-*$'$/4*! # !$))$'.// ( )/.*(+'42$/#0./-'$)*0)/$)"/) - .ѵ --)" ( )/.2$/#$) -/$)0.$) ..*($)/$*). )/$/' /# )*)Ҋ 3 -$.$)"/# - ) 2'$.- .*)'4 -/$)ѵ)/-).$/$*)Ѷ/# .. /2$'' ( .0- Ѷ*). 4. .$.Ѷ/ $/# -җҘ/# 1'0 *!/# !$))$' #  !$))$' .// ( )/. '.* *(+'4 2$/# )/ -)/$*)' $))$' *)/-*''$)"$)/ - ././*- ,0$- /# -*0+/*,0$- /# $-.#- #*' $)" '$$'$/4Ѹ*-җҘ/#  +- $/ 1'0 *!/# .. /.$!рх# '24. )++'$ ѵ  +*-/$)"/) - .җ Ҙ.$..0 4/#  )/ -)/$*)'*0)/$)" 1$ 3 -$. *!+0/*+/$*)Ѷ.0% //*.+ $!$/ -(.) *) $/$*).ѵ  /) - .*- җ Ҙѵ # -  .0# ) --)" ( )/ $. (  /*   +-/ *! /#  0.$) .. *($)/$*)Ѷ!$))$''$$'$/4$.- *")$. *)/# ,0$.$/$*) /  4*0)/$)"+*'$)" .$)Ҙ #$)"*)/# $/ (. җ '0*)//* %).$/$*)Ѷ.0хпп($''$*)0+*)/-ڦ ((*$''$)фппڦ( 2/  */4/$'$$' . ' #/!* 0'1 #/./ 3+ 0+*- # )*/ *1 ѵ ( .0- //# +- . )/1'0 *!/# - (+/$*)(*0)/0) -/#   )ршѶ/# -*0+$)$/$''4++'$ ш$))$' )./-0( )/.)  --)" ( )/ѵ )/# $)*( .// ( )/Ѷ) /- )/' 3+ ). 2$'' - +' 4) /$)/ - ./ 3+ ). ) ./-$"#/Ҋ'$)  +- $/$*) 3+ ). ѵ#$.$. 3+ / /* рф 1 )0 !-*(*)/-/.2$/#0./*( -.2#$#- .0'/ $)  significantly rebase the Group’s earnings before interest and tax (‘EBIT’) and returns on funds employed (‘ROFE’), both of which are key financial - /-*.+ /$1 - .// ( )/*!/# +-$*-+ -$* !$))$'.// ( )/.ѵ#  measures used by the business. The Group’s net profit after taxѶ.0% //**)'0 $)"*)/# $/ (.)*/ *1 Ѷ$. 3+ / /* - 0 4 )/0- )  !! /*!/#$.- .// ( )/- *0/'$) $)++ ) $3ѵ  .$'*-/(*#/ *)2#$  !-*(/# / *).*'$ - )/$/$ . рф($''$*)$)спѵ  *)/-*''ڦ*/(*$''$)чڦ4' /)3$*-++   1 -'*/# -( ) ( )/.) $)/ -+- //$*).++'4!*-/# !$-.//$(  /-).! -- /*/# -*0+)  . /* *).*'$ / !-*(/#  /  җҘ&Ҋ/*Ҋ&' . . $)ршѶ0/ *)*/#1 )$(+/*)/# !$))$'- +*-/*!/# -*0+ѵ *)2#$#*)/-*'$./-).! -- *0/*!/# -*0+ѵ ) $/$*)Ѷ /.##.+*-/!*'$**!'*)"Ҋterm ‘backҊ/*Ҋback’ property leases which secure competitive retail sites on behalf of the independent # . - .!*''*2.ѷ  - /$') /2*-&ѵ.#!'*2.0) -/# . --)" ( )/..0./)/$''4*!!. / #*/# -ѵ )+- +-$)"/# *).*'$ / !$))$'.// ( )/.Ѷ''$)/ -*(+)4 •  )/ -+- //$*) сс  ') .) /-)./$*).#1  ) '$($)/ $)!0''ѵ  *-&Ҋ/*Ҋ&' . .Ѷ/#  *+/$*)*!рх2$''- .0'/$)/# - *")$/$*)*!) $/$*)'!$))$'.. /)  ' . '$$'$/4Ѷ- +- . )/$)"/#   • спрцҊр( ) ( )/./*0./-'$)*0)/$)"/) - . +- . )/1'0 *!!0/0- .#!'*2.*)/# .0' . ) /# #  ' . Ѷ- .+ /$1 '4ѵ# -*0+ 3+ /./# 1'0 *!/# !$))$'.. /) /# ' .  *)Ҋ*)/-*''$)" $)/ - ./. -  ''*/  /# $- .#-  *! /*/' –-).! -*! )1 ./( )/-*+ -/4 / "*-4  /- . + .  -  +- . )/  )  *(*(+- # ).$1  $) *1 ѵ $)"*)/# $/ (.)*/ '0*)//* %упп($''$*)Ѷ.0ڦ (тппڦ( 2/  #  (/( '0$1, 4' *- */4/$'$$' • спрхҊф( ) ( )/./*0./-'$)*0)/$)"/) - .  2$/#$) ,0$/4ѵ – '..$!$/$*) )   .0- ( )/ *! #- Ҋ.  4( )/ */#/ "*-$ .*!!$))$'$)./-0( )/.-  3+ / /*" ) -/ $)/ - ./җ$)*( )  3+ ). Ѷ- .+ /$1 '4Ҙ- .0'/$)"!-*(/# 0)2$) $)"*!/#   -)./$*). $.*0)/*1 -/# ' . / -(ѵ# $(+/*!$)/ - ./$)*( )  3+ ). $. 3+ / /*(/ -$''4*!!. /2$/#$)/# $)*( .// ( )/ѵ # !$))$'.// ( )/.*!*)/-*''  )/$/$ .- +- +- !*-/#  • ))0' (+-*1 ( )/.спруҊспрх4' ) /# -( ) ( )/.  .(  - +*-/$)" + -$*  . /#  +- )/ )/$/4Ѷ 0.$)" *).$./ )/ # - *1 -$'$/4*!/# !$))$'.. /2$'' .. .. /' .// #- +*-/$)" / $)*- ) 2$/#ш ѵ  *0)/$)" +*'$$ .ѵ *- /#*.  *)/-*''  )/$/$ . 2$/# )*)Ҋ  җҘ 0./-'$)*0)/$)"/) - .$..0 0/)*/4 / !! /$1  */ -($)*0.4 - ) .Ѷ()" ( )/*0)/.!*-/# - ' 1)/+ -$*  to the Group’s reporting date have been consolidated. In the opinion )0( -*!) 2*0)/$)"./) - . җ$)'0 $)"( ) ( )/.)   *! /#  $- /*-.Ѷ /#  3+ ).  *! +-*1$ $)"  $/$*)' */ -($)*0. $)/ -+- //$*).Ҙ#1  )$..0 0/2 - )*/ !! /$1 ./тп+-$' .//0/*-4*0)/.Ѷ/*" /# -2$/#*). ,0 )/$' '4$)+-* 0$)"  спршѵ #  -*0+ #. ' /  )*/ /* -'4  *+/ )4 *! /# .  ) 2 the Group’s financial statements, would outweigh any benefit to ./) - .$)/# . !$))$'.// ( )/.ѵ  .#- #*' -.ѵ   ++ ) $3  *0/'$) . /#  3+ /  $(+/ *!  рх *) /#  Group’s financial statements 0+*) $)$/$' ++'$/$*) $) спѵ /# -  ./) - .$)$..0 /#/- ++'$' /*/# -*0+$)!0/0- !$))$' )1 ./( )/.$) )/$/$ .*)/-*'' 4 /.# $($/ - *0)/  + -$* ..!*''*2.ѷ !*-/*./$)/# . +-/ !$))$'.// ( )/.*!/# +- )/ )/$/4' ..  )4$(+$-( )/#-" .ѵ$1$ ) .-  $1 !-*(*)/-*''  )/$/$ . • спрцҊц – -  - *-  . $)*(  $)/#  . +-/ !$))$' .// ( )/. *! /#  +- )/ )/$/4Ѷ)  *)*/$(+//# - *- *./*!/# $)1 ./( )/ •  )/ -+- //$*)ст  0)' ../#  $1$ ) . !! /$1 '4- +- . )/- /0-)*!+$/'ѵ • спруҊрп –

•

Metcash Annual Report 2019 90  /.#-*0+Ҟ$))$' +*-/рш фч  /.#-*0+Ҟ$))$' +*-/рш фш 91 Notes*/ ./*/# to the!$))$'.// financial ( )/.җ*)/$)0statements Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( )/.җ*)/$)0statements Ҙcontinued For the year ended 30 April 2019 For the year ended 30 April 2019 *-/# 4 - ) тп+-$'спрш *-/# 4 - ) тп+-$'спрш

++ ) $3–0((-4*!.$")$!$)/*0)/$)"+*'$$ . ++ ) $3–0((-4*!.$")$!$)/*0)/$)"+*'$$ .

       # !*- $")0-- )4/-).'/$*)- . -1 $.0. /*- *-  3#)"  # -*0+- *")$. .+-*1$.$*).!*-- )/'"- ( )/.*),0$.$/$*)  -$1/$1 !$))$'$)./-0( )/.- $)$/$''4- *")$. /!$-1'0 *)  -$1/$1  $)./-0( )/. -  '..$!$  . 0-- )/ *- )*)Ҋ0-- )/ *- $!! - ) .-$.$)"!-*(/# /-).'/$*)*!/# !$))$'.// ( )/.*! җ- ! -)*/ рр!*-!0-/# - $.0..$*)Ҙѵ )( .0-$)"/# . +-*1$.$*).Ѷ /#  /  / 2#$#  -$1/$1  *)/-/ $. )/ -  $)/* )  -  . +-/  $)/* 0-- )/ )  )*)Ҋ0-- )/ +*-/$*). .  *) ) !*- $").0.$ $-$ .ѵ /$.'.*0. /*- *- /#  !! /*!# "$)") / ..0(+/$*).- ( *0/!0/0- - /$'.' .Ѷ- )/'*./.) $) .0. ,0 )/'4- ( .0- /*!$-1'0 ѵ .. ..( )/*!/# !/.) $-0(./) .$)'0 $)"/# 0) -'4$)" $)1 ./( )/.$)!*- $")*+ -/$*).ѵ / -($)$)"/# ++-*+-$/  $.*0)/-/ /* 0. $)/# .#!'*2  *)/-/ .#!'*2.ѵ  '0'/$*).ѵ #  !$- 1'0  *! -$1/$1  *)/-/. $. / -($) 4 - ! - )  /*   (-& /1'0 .!*-.$($'-$)./-0( )/.ѵ -$1/$1 .- --$ ... /.  Ҋ        Ѷ    #  -*0+ #. - *")$.   +-*1$.$*) $) *- )  2$/# /#  2# )/# $-!$-1'0 $.+*.$/$1 ) .'$$'$/$ .2# )/# $-!$-1'0    The Group’s investments in joint ventures and ..*$/ . -  *0)/$)" +*'$4 .-$  $) ++ ) $3 ѵрфѵ #  -*0+ .. .. . $.) "/$1 ѵ)4"$).*-'*.. .-$.$)"!-*(#)" .$)/# !$-1'0 *! *'$"/$*). !*- *) -*0. *)/-/. *) - /$' )  */# - #   ' .  -$1/$1 .Ѷ 3 +/ !*- /#*.  /#/ ,0'$!4 . .# !'*2 # " .Ѷ -  *0)/ !*-0.$)"/#  ,0$/4( /#* ѵ..*$/ .- /#*.  )/$/$ . җҘ $")$!$)/*0)/$)"%0 " ( )/. *1 -2#$#/# -*0+ 3 -$. ..$")$!$)/$)!'0 ) Ѷ0/)*/*)/-*' 3+*.0- .Ѷ+-*+ -/4(& Ҋ"** Ѷ- ./-0/0-$)") */# -*./.ѵ# .  /& ) $- /'4/*+-*!$/*-'*..!*-/# 4 -ѵ *- %*$)/ *)/-*'Ѷ *1 - /#  !$))$' )  *+ -/$)" +*'$$ .ѵ  %*$)/ ) /#  +-* .. *! ++'4$)" /#  roup’s accounting policies, the ./$(/ .-  / -($) 0.$)"..0(+/$*).*)- /$') 2- #*0.   1 )/0-  $. ) --)" ( )/ $) 2#$# /#  -*0+ #. %*$)/ *)/-*'Ѷ !*''*2$)" %0 " ( )/. 2 -  ( Ѷ +-/ !-*( /#*.  $)1*'1$)" +-*!$/$'$/4Ѷ+-*+ -/4- '/ *./.Ѷ0./*( -.0++*-/- ,0$- ( )/.Ѷ )./-0( )/. /#/ ( / /#  ./-$/ -$/ -$ !*- # "  *0)/$)" -  2# - 4/# -*0+#.-$"#/./*/# ) /.. /.*!/# %*$)/1 )/0- ѵ ./$(/$*).Ѷ 2#$# #1   .$")$!$)/ !! / *) /#  (*0)/. - 0) )4) */# -'*.0- *-- ./-0/0- *./.ѵ '..$!$ .ѷ *$)/ *)/-*' $. /#  *)/-/0''4 "-  .#-$)" *! *)/-*' *! ) - *")$. $)/# !$))$'.// ( )/.ѵ  --)" ( )/Ѷ 2#$# 3$./. *)'4 2# ) $.$*). *0/ /#  - ' 1)/ • !$-1'0 # " .Ѷ2# )/# 4# " /#  3+*.0- /*#)" .$) /$1$/$ .- ,0$- 0))$(*0.*). )/*!/# +-/$ ..#-$)"*)/-*' # -*0+.. .. ./# - *1 -' (*0)/*!$/. ,0$/4Ҋ*0)/  /# !$-1'0 *!- *")$. .. /*-'$$'$/4Ѹ*- )  $/$*) /* 2- #*0.  +0-#. .Ѷ 0./*( -. +0-#.  "** . $)1 ./( )/.2# )*% /$1  1$ ) *!$(+$-( )/$.$ )/$!$ ѵ )  ,0$/4Ҋ*0)/ $)1 ./( )/.- --$ $)/# .// ( )/*!!$))$' through the Group’s chargeҊ/#-*0"#+'/!*-() #1 /# . "** . .. ..$)"/# - *1 -' (*0)/Ѷ..0(+/$*).- ( *0//#  • .#!'*2# " .Ѷ2# )/# 4# " /#  3+*.0- /*1-$$'$/4$) +*.$/$*)/*./+'0.+*./Ҋacquisition changes in the Group’s share of '$1 -  $- /'4/*/# (!-*(.0++'$ -.ѵ# -*0+ -).(-"$) "-*2/#+-*.+ /.*!/# $)1 ./( )/) $) / -($)$)"/#  $.*0)/ .# !'*2. /#/ $. //-$0/'  $/# - /*  +-/$0'- -$.& ) /.. /.*!/# $)1 ./ Ѷ' ..)4$(+$-( )/$)1'0 ѵ *) /# .  .' . !*- +-*1$ $)" +-*0- ( )/Ѷ -*..Ҋ *&$)" )  -/ 0. /*'0'/ /# ) /+- . )/1'0 *!!0/0- .#!'*2.2# ) ..*$/  2$/#  - *")$.  .. /*- '$$'$/4 *- /*  !*- ./  . //' ( )/ . -1$ .ѵ #  -*0+ '.*  -. - $/ -$.& *) /#   $.*0)/ .#!'*2(* '$.0. ѵ /-)./$*)ѵ *- /#*.  ..*$/ . )  %*$)/ 1 )/0- . 2$/# )*)Ҋ*/ -($)*0. 4 - -  $1' .!-*(/# . .' .2$/#'$($/ - *0-. /*.0++'$ -.ѵ ends, management accounts for the relevant period to the Group’s  - +*-/$)" /  #1   ) ,0$/4Ҋ*0)/ ѵ ) /#  *+$)$*) *! /#  # -*0+ / -($) /#/$/$.)" )/$)/# . *)/-/..$/ * . # -*0+0. .+-*1$.$*)-/ (/-$3/*'0'/  .!*-/- )  # #)" $)/# !$-1'0 *!/# # " $/ (//-$0/' /*/# -$.& $- /*-.Ѷ/#  3+ ). *!+-*1$ $)" $/$*)'*/ -($)*0..//0/*-4 )*/*)/-*'/# "** . !*- /# 4-  $)"/-).! -- /*0./*( -.ѵ */# --  $1' .ѵ # " $.- *- .+-/*!/# --4$)"1'0 *!/# # " $/ ( ccounts, together with consequential delay in producing the Group’s  ) $.'.*- *")$. $)/# $)*( .// ( )/.!$)) *./.ѵ !/#  !$))$' .// ( )/.Ѷ 2*0'  *0/2 $"# )4  ) !$/ /* .#- #*' -.ѵ The provision rates are initially based on the Group’s historical # " $/ ($. - *")$. Ѷ/# 0)(*-/$. !$-1'0 $.- *")$.    / -($)$)" /#  3$./ )  *! *)/-*'Ѷ %*$)/ *)/-*' *- .$")$!$)/ *. -1  !0'/-/ .ѵ# -*0+2$'''$-/ /# (/-$3/* %0./ $(( $/ '4$)+-*!$/*-'*..ѵ   influence over the Group’s acquisitions. Where the Group exercises /# #$./*-$'- $/'*.. 3+ -$ ) 2$/#!*-2- Ҋ'**&$)"$)!*-(/$*)  .$")$!$)/$)!'0 ) *-%*$)/*)/-*'Ѷ/# ,0$.$/$*).- *0)/  җ ѵ"ѵѶ)4&)*2)#)" .$)(-& /*) $/$*).2$/#- ! - ) /*/#  # ))0)- *")$. !$-(*(($/( )/$. .$")/ .# "  )1 )/*-4*./$.( .0- /+0-#. +-$ Ѷ) /*!/- - / .)  !*-.%*$)/--)" ( )/.җ- ! -++ ) $3ѵцҘѸ) 2# - /# -*0+ (*./-  )/"-*.. *( ./$+-* 0/ /Ҙѵ/ 1 -4- +*-/$)" / Ѷ/#  $/ (Ѷ/# .0. ,0 )/0(0'/$1 #)" $)/# !$-1'0 *!/# !$-( $.*0)/. -  $1 Ѷ )  $)'0 $)" *./. $)0--  $) -$)"$)" /#  3 -$. . *)/-*'Ѷ /#  ,0$.$/$*). -  *0)/  !*- . 0.$) .. #$./*-$' *. -1  !0'/ -/ . -  0+ /  )  #)" . $) /#  *(($/( )///-$0/' /*/# # " -$.&$.- *")$. .).. / $)1 )/*-4/*$/.+- . )/'*/$*)) *) $/$*)ѵ- - / .$)'0  *($)/$*).җ- ! -++ ) $3ѵтҘѵ !*-2- Ҋ'**&$)" ./$(/ .- )'4. ѵ *-'$$'$/42$/#*-- .+*) $)""$)*-'*..- *")$. $)/# +-*!$/ )*)Ҋ1*'0( /-$ .0++'$ - $)*( Ѷ 2#$# $. .4./ (/$''4 ''*/  ) '*..ѵ  "$)./$)1 )/*-4*./0.$)" ./$(/ .. *) 3+ / +0-#.  # .. ..( )/*!/# *-- '/$*) /2 )#$./*-$'*. -1  !0'/ +// -).)  -)-/ .ѵ # - *")$/$*)) ( .0- ( )/*!.0++'$ -$)*( - ,0$- ./# 0.  -/ .Ѷ!*- ./ *)*($*) $/$*).)  .$..$")$!$)/ ./$(/ ѵ  *!%0 " ( )/Ѷ 0 /*#$"# "- *!1-$$'$/4) *(+' 3$/4$) # (*0)/*! .$.. ).$/$1 /*#)" .$)$-0(./) .) *! #  !! /$1 +*-/$*)*!/# "$)*-'*..*)/# # "$)"$)./-0( )/$. )1 )/*-$ .- 1'0 //# '*2 -*!*./*-) /- '$.' 1'0 ѵ / --)" ( )/.2$/#.0++'$ -.Ѷ)  0 /*/$($)" $!! - ) . /2 ) !*- ./ conomic conditions. The Group’s historical credit loss - *")$. $)*/# -*(+- # ).$1 $)*( ) --$ !*-2- /*/#  - '$.' 1'0 $./#  ./$(/ . ''$)"+-$ $)/# *- $)-4*0-. *! ./*&+0-#. .) /# +-*1$.$*)*!+-*(*/$*)'. -1$ .ѵ 3+ -$ )  )  !*- ./ *! *)*($ *) $/$*). (4 '.* )*/   .#!'*2# " - . -1 Ѷ2#$' )4$) !! /$1 +*-/$*)$.- *")$.  0.$) ..Ѷ) /*! ./$(/ *./.)  ..-4/*(& /# .' ѵ representative of customer’s actual default in the future. $(( $/ '4$)/# $)*( .// ( )/.!$)) *./.ѵ    Ѷ    / -($)$)" /#  ,0$.$/$*) /  !$- 1'0  *! .. /. ,0$-  )      (*0)/.- *")$. .*/# -*(+- # ).$1 $)*( - /-).! --  '$$'$/$ ...0( *),0$.$/$*)*!*)/-*''  )/$/$ .ѵ /*+-*!$/*-'*..2# )/#  # " /-)./$*)!! /.+-*!$/*-'*..Ѷ - -  $1' .- ( .0- //# /-)./$*)+-$  / -($)   .0# . 2# ) /#  # "  !$))$' $)*(  *- !$))$' 3+ ).  $. 0) -++ ) $3ѵрцѵ - *")$. *-2# )!*- ./.' *0-.ѵ# )/# # " $/ ($. '''.. .*!+-*+ -/4Ѷ+')/)  ,0$+( )/- ( .0- /*./' .. җҘ $")$!$)/*0)/$)" ./$(/ .) ..0(+/$*).  /# *./*!)*)Ҋ!$))$'.. /*-)*)Ҋ!$))$''$$'$/4Ѷ/# (*0)/. 0(0'/  +- $/$*)) )40(0'/ $(+$-( )/'*.. .ѵ # -*0+- *")$. .)''*2) !*- 3+ / - $/'*.. .җ Ҙ!*- #  --4$)" (*0)/. *!  -/$) .. /. )  '$$'$/$ . -  *!/ ) - *")$.  . */# - *(+- # ).$1  $)*(  -  /-).! --  /* /#  $/./- ) */# --  $1' .ѵ# -*0+#. ./'$.# +-*1$.$*) / -($) . *) ./$(/ .) ..0(+/$*).*!!0/0-  1 )/.ѵ#  $)$/$'--4$)"(*0)/*!/# )*)Ҋ!$))$'.. /*-'$$'$/4ѵ (/-$3Ѷ0) -/# .$(+'$!$ ++-*#$)'0'/$)" Ѷ/#/$..  & 4 ./$(/ .) ..0(+/$*)./#/#1 .$")$!$)/-$.&*!0.$)"   +- $/$*)$.+-*1$ *)./-$"#/Ҋ'$) .$.*)''+-*+ -/4Ѷ+')/ *)$/.#$./*-$'- $/'*.. 3+ -$ ) Ѷ %0./ !*-!*-2- Ҋ'**&$)" (/ -$' %0./( )//*/# --4$)"(*0)/.*! -/$).. /.)  !/# !*- .//-)./$*)*-!$-(*(($/( )/$.)*'*)" - 3+ /  )  ,0$+( )/Ѷ */# - /#) !- #*'  ')  )  .. /. 0) - !/*-..+ $!$/*"-*0+*! /*-.) /#  *)*($ )1$-*)( )/ѵ '$$'$/$ .2$/#$)/# ) 3/))0'- +*-/$)"+ -$* - ѷ /**0-Ѷ/# 0(0'/$1 "$)*-'*..+- 1$*0.'4- *")$. $) ,0$/4$. *)./-0/$*)ѵ%*- +- $/$*)+ -$* .- ѷ  /-).! -- /*/# $)*( .// ( )/ѵ !/# # "$)"$)./-0( )/ 3+$- .  рш рч *-$..*' Ѷ/ -($)/ *- 3 -$. 2$/#*0/- +' ( )/*--*''*1 -Ѷ*-  #  -*0+ / -($) . 2# /# - "** 2$'' $. $(+$-  *) ) ))0' $!$/. .$")/$*).# " $.- 1*& Ѷ)40(0'/$1 "$)*-'*..    +- 1$*0.'4 - *")$.  $) */# - *(+- # ).$1  $)*(  - ($). $) .$.ѵ#$.- ,0$- .) ./$(/$*)*!/# - *1 -' (*0)/*!/#  - #*' 0$' $)". сфҊуп4 -. сфҊуп4 -. .# " ) -/$)" 0)$/. /* 2#$# /#  "** 2$'' $. ''*/ ѵ #  */# - *(+- # ).$1  $)*(  0)/$' /#  !*- ./ /-)./$*) *- !$-( ')/)  ,0$+( )/ сҊсп4 -. сҊсп4 -. ..0(+/$*).0. $)/#$. ./$(/$*)*!/# - *1 -' (*0)/)  *(($/( )/!! /.+-*!$/*-'*..ѵ /# --4$)"(*0)/*!"** 2$''-  $.0.. $))*/ шѵ  #  .# !'*2 # "  - . -1  - *- . /#  +*-/$*) *! /#  0)- '$.  ) $/ ( *! +-*+ -/4Ѷ +')/ )  ,0$+( )/ $. - *")$.  0+*) "$) *- '*.. *)  # "$)" $)./-0( )/ $)  .# !'*2 # "  /#/ $. $.+*.'*-2# ))*!0/0-  *)*($ ) !$/.-  3+ / /*-$.  / -($) /* ) !! /$1 # " ѵ !-*(/# *)/$)0 0. *!/# .. /ѵ  )4"$)*-'*..-$.$)"*) - *")$/$*)*!/# .. /җ'0'/ ./#  $!! - )   /2 ) /#  ) / $.+*.' +-* . )  /#  --4$)"

92 Metcash Annual Report 2019 93  /.#-*0+Ҟ$))$' +*-/рш хп  /.#-*0+Ҟ$))$' +*-/рш хр Notes to the financial statements continued Notes to the financial statements continued For*/ the year./*/# ended 30 April!$))$'.// 2019 ( )/.җ*)/$)0 Ҙ For*/ the year./*/# ended 30 April!$))$'.// 2019 ( )/.җ*)/$)0 Ҙ *-/# 4 - ) тп+-$'спрш *-/# 4 - ) тп+-$'спрш

++ ) $3–0((-4*!.$")$!$)/*0)/$)"+*'$$ . ++ ) $3–0((-4*!.$")$!$)/*0)/$)"+*'$$ .

(*0)/ *!/# $/ (Ҙ$.$)'0 $)/# .// ( )/*!*(+- # ).$1  # )"** 2$''!*-(.+-/*!"-*0+*!.#" ) -/$)"0)$/.) )     !/#  !! /*!/# /$( 1'0 *!(*) 4$.(/ -$'Ѷ+-*1$.$*).-  $)*( $)/# + -$* /# $/ ($. - *")$. ѵ *+ -/$*)2$/#$)/#/0)$/$. $.+*. *!Ѷ/# "** 2$''..*$/ 2$/# ( .0-  / /#  ) / +- . )/ 1'0  *! /#  3+ /  !0/0-  .#  /# *+ -/$*) $.+*. *!$.$)'0 $)/# --4$)"(*0)/*!/#  *0/!'*2.0.$)"0-- )/+- Ҋ/3-/ /#/- !' /./# -$.&..+ $!$/* *+ -/$*) 2# ) / -($)$)" /#  "$) *- '*.. *) $.+*.' *! /#  /#  '$$'$/4ѵ 0-$)" # + -$*  /#  +-*1$.$*) $. $)- .  4 )    $$'$/$ . !*- 2" . )  .'-$ .Ѷ $)'0 $)" )*)Ҋ(*) /-4  ) !$/.Ѷ *+ -/$*)ѵ ** 2$'' $.+*.  *! $) /#$. $-0(./)  $. ( .0-  ))0'' 1 ) 0(0'/$)".$&' 1 Ѷ- - *")$. $)+-*1$.$*). (*0)//#/$. ,0'/*/# +-*1$.$*)(0'/$+'$ 4/#  $.*0)/-/ ѵ .  *) /#  - '/$1  1'0 . *! /#  *+ -/$*) $.+*.  *! )  /#  in respect of employees’ services up to the reporting date. They-  #$.$)- ( )/Ѷ$)'0 $)")4#)" $)/# 1'0 *!/# +-*1$.$*). +*-/$*)*!/# "-*0+.*!.#Ҋ" ) -/$)"0)$/.- /$) ѵ ( .0- //# (*0)/. 3+ / /* +$ 2# )/# '$$'$/$ .-  - .0'/*!#)" $) $.*0)/-/ Ѷ$./- / .!$)) *./ѵ )/)"$' .. /.,0$- . +-/ '4*-$)0.$) ..*($)/$*)-  . //' ѵ $$'$/$ . 0 /* . //' 2$/#$)рс(*)/#.*!/# - +*-/$)"  $)$/$''4( .0- /*./ѵ*''*2$)"$)$/$'- *")$/$*)Ѷ/# *./(* ' /  -  '..$!$  . 0-- )/ '$$'$/$ .ѵ $$'$/$ . !*- )*)Ҋ #  -*0+ .. .. . *'$"/$*). !*- *) -*0. *)/-/. *) - /$' )  $.++'$ /*/# '..*!$)/)"$' .. /.ѵ # 0. !0''$1 .*!/# . $)/)"$' .. /.- .. .. /*  $/# - 0(0'/$)".$&' 1 - - *")$. 2# )/# ' 1 $./& ))  */# -#  ' .  3+*.0- .Ѷ+-*+ -/4(& Ҋ"** Ѷ- ./-0/0-$)")   !$)$/ *-$) !$)$/ ѵ# - (*-/$./$*)$.#-" *).. /.2$/#!$)$/  - ( .0- //# -/ .+$ *-+4' ѵ */# - *./.ѵ# .  ./$(/ .-  / -($)  0.$)"..0(+/$*). *) )/)"$'  .. /. җ 3'0 $)" .*!/2-  1 '*+( )/ *./.Ҙ - /  '$1 .Ѷ/#$. 3+ ). $./& )/*/# +-*!$/*-'*..*)./-$"#/Ҋ'$) .$.ѵ - /$') 2- #*0. +-*!$/$'$/4Ѷ +-*+ -/4- '/ *./.Ѷ0./*( - 2$/#$) /#  0.$) .. -  )*/ +$/'$.  )  3+ ) $/0-  $. #-"   .0++*-/- ,0$- ( )/.Ѷ- 0) )4) */# -'*.0- *-- ./-0/0-  "$)./+-*!$/.$)/# + -$* $)2#$#/#  3+ ) $/0- $.$)0-- ѵ #  ./$(/ 0. !0''$1 .*! 3$./$)"!$)$/ '$! $)/)"$' .. /.- . *./.ѵ  # '$$'$/4!*-'*)". -1$ ' 1 $.- *")$. $)/# +-*1$.$*)!*- !*''*2.ѷ  ** 2$'',0$- $)0.$) ..*($)/$*)$.$)$/$''4( .0- / (+'*4   ) !$/. )  ( .0-  . /#  +- . )/ 1'0  *! 3+ /  !0/0-  +4( )/. /*   (  $) - .+ / *! . -1$ . +-*1$  4 -*1$.$*).!*-+-*+ -/4' . ) - ( $/$*)*./.- -$. 2# -  *./Ѹ $)"/#  3 ..*!/# *./*!/# 0.$) ..*($)/$*)*1 -/#  рш рч  (+'*4 . 0+ /* /#  - +*-/$)" / ѵ *).$ -/$*) $. "$1 ) /* /#  *)*($ )/$/4$.*(($// 4/# - ,0$- ( )/.*!/# ' .  Group’s interest in the net fair value of the acquiree's identifiable "- ( )/ѵ# !0/0- ' . *./.Ѷ) /*!)4$)*( !-*(.0Ҋ' .$)"Ѷ    3+ /  !0/0-  2"  )  .'-4 ' 1 '.Ѷ 3+ -$ )  *! (+'*4  .. /.Ѷ'$$'$/$ .) *)/$)" )/'$$'$/$ .ѵ -  $.*0)/ /*/# $-) /+- . )/1'0 $) / -($)$)"/# +-*1$.$*)ѵ  0./*( -*)/-/. рф4 -. рф4 -. +-/0- .Ѷ) + -$* .*!. -1$ ѵ3+ / !0/0- +4( )/.//#  - +*-/$)" /  -  $.*0)/  0.$)" (-& / 4$ ' . *) #$"#Ҋ,0'$/4   *!/2-  1 '*+( )/*./. фҊрп4 -. фҊрп4 -. *-+*-/  *) . 2$/# / -(. /* (/0-$/4 /#/ (/# . '*. '4 . - )( .- ,0$-  $/# -/#-*0"#0.$) ..*($)/$*).*- /# - рп4 -. рп4 -.  Ҋ  /#-*0"# $- /,0$.$/$*)ѵ- )( .- - *")$. .$)/)"$'  +*..$' Ѷ/#  ./$(/ !0/0- .#*0/!'*2.ѵ  # -*0++-*1$ .+*-/$*)*!. )$*- 3 0/$1 ) & 4 (+'*4  .. /. 2# -   - "$./ -  /-  (-& $. ,0$-  2$/# //-$0/'   . !0''$1 .- - .. .. *))))0'.$.)  %0./( )/.Ѷ2# -  - (0) -/$*). ,0$/4Ҋ. //' .#- Ҋ. +4( )/.Ѷ$)/# !*-(*! 1'0 ѵ- )( .- 1'0 *)- '$ !!-*(-*4'/4( /#* ѵ-  ++'$' Ѷ- ( *)+-*.+ /$1 .$.ѵ Ҋ   + -!*-() -$"#/.ѵ )( . -  *).$ -  /*   $) !$)$/  '$!  $)/)"$' . )  -  )*/   (*-/$. Ѷ0)' ../# - $.)$)/ )/$*)/* $.*)/$)0 0. *!/# )(  '''*).) *--*2$)".- $)$/$''4- *")$. //# !$-1'0 *!/#  # 1'0 *!/# + -!*-() -$"#/.$..0 $. / -($) *)/#  /  $)2#$#. $/$.(*-/$. *1 -$/. ./$(/ - ($)$)"0. !0''$! ѵ  Ҋ    *).$ -/$*) -  $1  ) / *! $..0  *./. ..*$/  2$/# /#  2#$#*/#/#  (+'*4 ) /# -*0+0) -./) ) "- /*/#   *--*2$)"ѵ / # - +*-/$)" / Ѷ /#  -*0+ .. .. . 2# /# - /# -  $. )4 .#- Ҋ. +4( )// -(.) *) $/$*).җ"-)/ / Ҙѵ# 1'0 / 0./*( - *)/-/. -  ,0$-  /#-*0"# 0.$) .. *($)/$*).ѵ  $) $/$*)/#//#  1'0  *!  )*)Ҋ!$))$' .. / (4   $(+$- ѵ "-)/ /  $. .  0+*) /#  !$- 1'0  *!  .$($'- --)" ( )/ 0./*( - *)//. -  - *")$.  . $)/)"$'  .. /. 2# ) /#  !/ -$)$/$'- *")$/$*)Ѷ$)/ - ./Ҋ -$)"*--*2$)".- .0. ,0 )/'4 ** 2$'') $) !$)$/ '$! $)/)"$' .. /.- / ./ !*-$(+$-( )/  /2 )/# -*0+) )$) + ) )//#$- +-/4) $. / -($)  -$/ -$ .+ $!$  $)  ртч  #1   ) ( /ѵ ( .0- /(*-/$. *./0.$)"/#  !! /$1 $)/ - ./( /#* ѵ / ' ./ ))0''4 )  (*-  !- ,0 )/'4 $! 1 )/. *- #)" . $) 0.$)")++-*+-$/ 1'0/$*)(* 'ѵ# !$-1'0  * .)*/*).$ - 0./*( - *)/-/. -  1'0  4 ++'4$)"  $.*0)/  .# !'*2  $-0(./) .$) $/ /#//# --4$)"1'0 (4 $(+$- ѵ /#  $(+/ *! . -1$  *- + -!*-()  *) $/$*).Ѷ */# - /#) 1'0/$*) ( /#* *'*"4 2$/# *).$ -/$*) "$1 ) /* 0./*( - $).) '*.. .- - *")$. $)+-*!$/*-'*..2# )/# '$$'$/$ .-   *) $/$*). '$)&  /* /#  .#-  +-$  *!  /.# $($/  җ(-& / - / )/$*)) +-*% / !0/0- .#!'*2./*/#  ) *!/# *)/-/ - *")$. ѵ # - )$) $/*-*!$(+$-( )/ 3$./.Ѷ/# -*0+(& .!*-(' *) $/$*).Ҙѵ /$'.*!/# 1'0/$*)(* '.0. ) !$-1'0 .!*- + -$* ѵ #  (*-/$./$*) #.  ) - *")$.  $) /#  .// ( )/ *! ./$(/ *!- *1 -' (*0)/ѵ# - /# --4$)"(*0)/*!)*)Ҋ  #/-)# *!+ -!*-() -$"#/.$..0 - *0/'$) $))*/ рчѵ comprehensive income in the line item ’administrative costs‘. !$))$'.. / 3 .$/.- *1 -' (*0)//# .. /$.*).$ -     $(+$- ) $.2-$// ) *2)/*$/.- *1 -' (*0)/ѵ #  !$- 1'0  *! + -!*-()  -$"#/. $. - *")$.  . ) 3+ ). Ѷ *!/2-  1 '*+( )/ *./. $)0--  *) ) $) $1$ 0' +-*% / -  . .- '..$!$ //# $-$) +/$*). $/# -*+ -/$)"*-!$))   /*" /# -2$/#*-- .+*) $)"$)- . $)/# .#- Ҋ. +4( )/. +$/'$.  / *./ 2# ) !0/0-  - *1 -$'$/4 ) - .*)'4   ' . .. *)/#  *)*($.0./) *!/# "- ( )/.*./*  *1 -' (*0)/$./# "- / -*!!$-1'0 ' ..*././*. '')  - . -1 2$/#$) ,0$/4Ѷ*1 -/# + -$*  /2 )"-)/ / ) /#  /  ..0- ) 2# - /# -*0+#.)$)/ )/$*)) $'$/4/*0. /#  - !' //# -$.&.)  ) !$/.$)$ )/'/**2) -.#$+ѵ value in use. It is determined for an individual asset, unless the asset’s *)2#$# (+'*4  *( .!0''4 )/$/' /*/# 2- җ1 ./$)" / Ҙѵ .. /ѵ*''*2$)"/# $)$/$'- *")$/$*)*!.*!/2-  1 '*+( )/*./.Ѷ 1'0 $)0. ))*/  ./$(/ /* '*. /*$/.!$-1'0 ' ..*./. #$. 3+ ). $.- *")$. 0(0'/$1 '44 ./$(/$)"/# )0( -*! /#  .. / $. --$  / *./ ' .. )4 0(0'/  (*-/$./$*) )  /* . '' )  $/ * . )*/ " ) -/  .# $)!'*2. /#/ -  '-" '4 + -!*-() -$"#/. 3+ / /*1 ./ѵ#$.*+$)$*)$.!*-( . *) 0(0'/  $(+$-( )/ '*.. .ѵ )4 *./. --$  !*-2-  -  $) + ) )/*!/#*. !-*(*/# -.. /.*-"-*0+.*!.. /.ѵ )/#$.. Ѷ + -/$)"' . .- /#*. ' . .2# - /# ' ..*- !! /$1 '4- /$). /#  ./1$'' $)!*-(/$*)//# - +*-/$)" / ѵ* %0./( )/$. amortised over the assets’ useful economic lives. /#  - *1 -'  (*0)/ $. / -($)  !*- /#  .#Ҋ" ) -/$)" 0)$/ .0./)/$''4''*!/# -$.&.)  ) !$/.*!*2) -.#$+*!/# ' .  ( !*-/# '$& '$#** *!(-& /*) $/$*). $)"( /./#  !! /*! җҘ/*2#$#/# .. / '*)".ѵ $/ (ѵ+ -/$)"' . +4( )/.- - *")$. .) 3+ ). *) /# . *) $/$*).$.$)'0 $)/#  / -($)/$*)*!!$-1'0 /"-)/  ./-$"#/Ҋ'$) .$.ѵ / ѵ# - /# + -!*-() -$"#/.- ) '' Ѷ)4 3+ ). )*/4 / $).*-'*.. .-$.$)"!-*( - *")$/$*)*!)$)/)"$' .. /-  # )/# --4$)"(*0)/*!).. /*- 3 .$/.- *1 -'  - *")$. !*-/# 2- $.- *")$. $(( $/ '4ѵ ( .0- ./#  $!! - )  /2 )/# ) / $.+*.'+-* .) /#  (*0)/Ѷ/# .. /$.*).$ - $(+$- ) $.2-$// ) *2)/*$/.  --4$)"(*0)/*!/# .. /) - - *")$. $)/# .// ( )/*! - *1 -' (*0)/ѵ ).. ..$)"1'0 $)0. Ѷ/#  ./$(/ +- Ҋ/3 . . $) 2#$# /#  -*0+ - /$). .0./)/$''4 '' /#  -$.&. )  #  $'0/$1  !! /Ѷ $! )4Ѷ *! *0/./) $)" + -!*-()  -$"#/. -  *(+- # ).$1 $)*( 2# )/# .. /$. - *")$. ѵ !0/0- .#!'*2.-  $.*0)/ /*/# $-+- . )/1'0 0.$)"+- Ҋ/3  ) !$/.*!/# ' . .. /- '..$!$ .*+ -/$)"' . .ѵ )$/$' - !' / . $/$*)'.#-  $'0/$*)$)/# *(+0//$*)*! -)$)". $.*0)/ -/  /#/ - !' /. 0-- )/ (-& / .. ..( )/. *! /#  /$(  $- /*./.$)0-- $)) "*/$/$)")*+ -/$)"' . -  /*/#  + -.#- ѵ 1'0 *!(*) 4) /# -$.&..+ $!$/*/# .. / --4$)"(*0)/*!/# ' . .. /) - *")$. .) 3+ ). *1 -  /# ' . / -(*)/# .( .$..- )/'$)*( ѵ (+$-( )/'*.. .- - *")$. $)/# .// ( )/*!*(+- # ).$1   #  .#- Ҋ.  +4( )/. - . -1  $. 0.  /* - *-  /#  1'0  *! $)*( ѵ    ,0$/4 ) !$/.+-*1$ /* 3 0/$1 ..+-/*!/# $-- (0) -/$*)ѵ   ! -/*)*/ рч!*-!0-/# - /$'.*!/# . +').ѵ) + -!*-()  -*1$.$*).- - *")$. 2# )/# -*0+#.+- . )/*'$"/$*) -$"#/#.'+. /# -*0+)*'*)" -#.)4*'$"/$*)/**)1 -/ җ' "'*-*)./-0/$1 Ҙ.- .0'/*!+./ 1 )/Ѷ$/$.+-*' /#/) /# . + -!*-() -$"#/.$)/*.#- +$/'ѵ# (*0)//-).! --  *0/!'*2*!- .*0- . (* 4$)" *)*($ ) !$/.2$'' - ,0$- /* /*- /$)  -)$)".- +- . )/./# 1'0  *! .#- Ҋ. +4( )/. . //'  /#  *'$"/$*) )   - '$'  ./$(/  )   (  *! /#  +- 1$*0.'4- *")$. .) 3+ ). /#/#1 .0. ,0 )/'4'+. ѵ (*0)/*!/# *'$"/$*)ѵ  

94 Metcash Annual Report 2019 95  /.#-*0+Ҟ$))$' +*-/рш хс  /.#-*0+Ҟ$))$' +*-/рш хт Notes*/ ./*/# to the!$))$'.// financial ( )/.җ*)/$)0statements Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( )/.җ*)/$)0statements Ҙcontinued For the year ended 30 April 2019 For the year ended 30 April 2019 *-/# 4 - ) тп+-$'спрш *-/# 4 - ) тп+-$'спрш

++ ) $3–0((-4*!.$")$!$)/*0)/$)"+*'$$ . ++ ) $3– )!*-(/$*)*).0.$ $-$ .

   • # --4$)"(*0)/*! ! -- $)*( /3.. /.$.- 1$ 2 /  /.# $($/  $. /#  0'/$(/  +- )/ )/$/4 *! /#  -*0+ѵ #   рш рч ڿ ڿ !*./( ) //.'$(($! #/ 0'($./( ) //.'$(($! / $'*.(* - "(*'*(.$/$/#//( /3  #/*/ 0 - ( / "($/-*+ -# +-*' /#/.0!!$$ )//3' +-*!$/2$'' 1$'' /*''*2  /.# $($/ ) /# .0.$ $-$ .'$./ $)/# !*''*2$)"/' ѵ''    )/$/$ . -  $)*-+*-/  $) 0./-'$ 3 +/ 2# -  .+ $!$''4 The Group’s revenue principa''4-$. .!-*(/# .' *!"** .2$/#$)$/. ''*-+-/*!/#  ! -- $)*( /3.. //* 0/$'$. ѵ 0-*0+/4 /  рпп рпп $ )/$!$ ѵ 2#*' .'  $./-$0/$*) )  - /$' *+ -/$*).Ѷ . *0/'$)  $) )*/  сѵ  $/#-/4 /  рпп рпп ' .- 1 )0 $.- *")$. 2# )/# -*0+#. '$1 - "** ./*$/.     рш рч $,0*-- -./4 /  рпп рпп рпп рпп  / 4//-).-*0,$ ڿ ڿ ($ / ''* ''/$*)2$ - *).$/' /#$/$.+-* )Ѷ.- )*/.0 3#)" ѵ 1 )0 $.( .0- . *)/# *).$ -/$*) 3+ /  .$ -)$)". + - .#-  $. '0'/  . ) / +-*!$/ //-$0/'  /*    Ҋ )/ -)/$*)'0./-'$/4 $($/  рпп рпп /* -  $1 Ѷ) /*!1*'0( /-$) */# -/- - / .ѵ ( ( -. *! /#  +- )/Ѷ  %0./  /* 3'0  )4 *./. *! . -1$$)" р ,0$/4 җ*/# -/#) $1$ ) .Ҙ $1$  4 /#  2 $"#/  1 -"  )/$/$ .2$/#$)/# '*. -*0+     "-*+ -/4)" ( )//4 /  рпп рпп  )0( -*!*- $)-4.#- .Ѷ %0./ !*-)4*)0. ' ( )/ѵ /$*) *' $)"./4 /  рпп рпп  -($ 1 -)җ- $)"Ҙ/4 /  рпп рпп #  -*0+ *+ -/ .  #-" Ҋ/#-*0"# +'/!*-( 2# - 4 "** . -   /$*)0+ -(-& /./4 /  рпп рпп  /.#3+*-/ -1$ ./4 /  Ҋ рпп $'0/  -)$)".+ -.#- - '0'/ .) /+-*!$///-$0/' /* )5(җ0./ѵҘ/4 /  рпп рпп  /.#** о-* -4*)1 )$ )  delivered directly to the Group’s customers by su++'$ -.ѵ# -*0+ рпп рпп - /$)./# - $/-$.&..*$/ 2$/#/# . /-)./$*).Ѹ#*2 1 -Ѷ/#  ( ( -.*!/# +- )/Ѷ %0./ !*-ѷ 0./-'$).$$!$#*' .' -./4 /  рпп рпп $1$.$*)/4 $($/   /.#** о-* -4/4 /  рпп рпп -*0+ * . )*/  - )4 (/ -$' $)1 )/*-4 -$.& *- 3 -$.  )4 • *./.*!. -1$$)" ,0$/4җ*/# -/#) $1$ ) .ҘѸ 0./-'$) - 2- $./-$0/*-./4ѵ $($/  рпп рпп (/ -$' $.- /$*) $) ./'$.#$)" +-$ .ѵ #-" Ҋ/#-*0"# • /#  !/ -Ҋ/3 !! / *! $1$ ) . )  $)/ - ./ ..*$/  2$/# 0./-'$) - 2- 0++*-/ -1$ ./4 /  рпп рпп  /.# *' $)"./4 /  рпп рпп /-)./$*).- /# - !*- - +*-/ *))agency or net ‘commission’ $'0/$1 +*/ )/$'*- $)-4.#- ./#/#1  )- *")$. . 0./-'$) $,0*--& / -.җ Ҙ/4 /  рпп рпп  /.#)" ( )//4 $($/  рпп рпп .$.ѵ 3+ ). .Ѹ)  0./-'$) $,0*--& / -.җҘ/4 /  рпп рпп  /.# -1$ .-*+-$ /-4 $($/  рпп рпп • */# -)*)Ҋ $.- /$*)-4#)" .$)- 1 )0 .*- 3+ ). . 0-$)" 0./-'$) $,0*--& / -./4ѵ $($/  рпп рпп  /.#/*-" /4 $($/  рпп рпп /#  + -$*  /#/ 2*0'  - .0'/ !-*( /#  $'0/$*) *! +*/ )/$' )) -рп/4 / җҘ рпп Ҋ  /.#- $)" $($/  рпп рпп  )/'$)*( $.*0)/ !*-*)./-$"#/Ҋ'$) .$.*1 -/# ' .  *- $)-4 .#- .Ѷ $1$  4 /#  2 $"#/  1 -"  )0( - *! $"-"$)*//' .#*+.0./-'$/4 /  рпп рпп  /-*.#о--4/4 $($/  рпп рпп term and is classified within ‘other income’. Contingent rental income *- $)-4.#- .)  $'0/$1 +*/ )/$'*- $)-4.#- .Ѷ %0./  + 1$ 2 - 2- /4 /  рпп рпп $-- )җ0./-'$Ҙ/4 /  рпп рпп $. - *")$.  . $)*(  $) /#  + -$* . $) 2#$# $/ $. -) ѵ !*-)4*)0. ' ( )/ѵ $/4  о*' /*-" *(+)4-*+-$ /-4 $/- рп0./-'$/4 /  рпп рпп  рпп рпп $($/  $/- рп "/4 /  рпп рпп       Clancy’s Food Stores Pty Limited рпп рпп $/- рп/4 /  рпп рпп *(+*.$/ 04 -.$)) /4 /  рпп рпп - '') - 2- /4 /  рпп рпп $)) *./. $- /'4//-$0/' /*/# ,0$.$/$*)Ѷ*)./-0/$*)*-  -/$) *(+-/$1  $)!*-(/$*) 2. ( )  $) /# .  !$))$' +-* 0/$*)*!).. //#/)  ..-$'4/& ..0./)/$'+ -$* *! .// ( )/. /* *)!*-( /* /#  0-- )/ 4 - +- . )//$*)ѵ # .  *(+*.$/ 04 -./4 $($/  рпп рпп /$*)' /$'0++*-/ -1$ ./4 /  рпп рпп /$( /*" /-  4!*-$/.$)/ ) 0. *-.' - +$/'$. .+-/*! amendments do not impact the Group’s financial results and do not )&. *' $)"./4 $($/  рпп рпп 4' ..0+ --)җҘ/4 /  рпп рпп /# *./*!/# .. /ѵ''*/# -!$)) *./.-  3+ ). $)/# + -$*  have any significant impact on the Group’s balance sheet. 1$ .** . -1$ ./4 /  рпп рпп  /4 $($/  рпп рпп /# 4*0-ѵ*--*2$)"*./.*).$./*!$)/ - ./) */# -*././#/) 1$ .-*0+/!!0+ -))0/$*)0) /4ѵ 0 ).')  ) + ) )/#*' .' -./4 рпп рпп рпп рпп )/$/4$)0-.$)*)) /$*)2$/#/# *--*2$)"*!!0) .ѵ / ѵ $($/    0+ -))0/$*)/4 /  рпп рпп *( - 2- /4 /  рпп рпп  -/$) +-*1$.$*). -  ( .0-  / /# $- $.*0)/  1'0 ѵ 0-$)" #0 - 2- /4 /  рпп рпп ))$)"4./ (.җ0 'Ҙ/4 /  рпп рпп #+ -$* /# +-*1$.$*)$.$)- . 4)(*0)//#/$. ,0'/* ** ') -*+ -/$ ./4 /  рпп рпп (-/ */4 /  рпп рпп /#  +-*1$.$*) (0'/$+'$  4 /#  $.*0)/ -/ ѵ #$. $)- ( )/Ѷ *0/#*./+ -/$*)./4 /  рпп рпп $)'0 $)")4#)" $)/# 1'0 *!/# +-*1$.$*).- .0'/*! ** ') -*+ -/4 *' $)"./4ѵ / ѵ рпп Ҋ #)" $) $.*0)/-/ Ѷ$./- / .!$)) *./ѵ -)&'$)./4 /  рпп рпп *0/# ./+ -/$*)./4 /  рпп рпп  -)&'$).0+ -(-& /./4 /  рпп рпп  *' $)"/4 /  рпп рпп - .*0+ -(-& / *' $)"./4 /  рпп рпп #-$!/4Ҋ $)& - 2- /4 /  рпп рпп  - )- .#-* 0 /4 /  рпп рпп $( -/ )/4 /  рпп рпп 0-- )//3.. /.) '$$'$/$ .!*-/# 0-- )/) +-$*-+ -$* .-  '*' $,0*-#*' .' -./4 $($/  рпп рпп   ҝ/4 /  рпп рпп ( .0- //# (*0)/ 3+ / /* - *1 - !-*(*-+$ /*/#  (( - - 2- /*- ./4 /  рпп рпп   .()$/4 /  рпп рпп /3/$*)0/#*-$/4ѵ# /3-/ .) /3'2.0. /**(+0/ /#  ) 4()/*- ./4 /  рпп рпп 2)*т/4 /  рпп рпп (*0)/- /#*. /#/-  )/ *-.0./)/$1 '4 )/ 4/#  - $)". - 2- /4 /  рпп рпп ѵѵ - 2-  -1$ ./4ѵ /  рпп рпп - ' 1)/- +*-/$)" / ѵ $(*/4 /  рпп рпп $&.*)*-+*-/$*)/4 $($/  рпп рпп  *(  - 2- 0./-'.$/4 /  рпп рпп  ! --  $)*(  /3 .. /. -  - *")$.  !*- '' 0/$'     / (+*--4 $!! - ) .Ѷ--4Ҋ!*-2- 0)0. /3.. /.) 0)0.  *( $( -о - 2- -*0+/4 /  рпп рпп )/$/$ .*0/.$ *!/# '*. -*0+   /3'*.. .Ѷ/*/#  3/ )//#/$/$.+-*' /#//3' +-*!$/2$''  *( ./   - 2- 0./-'.$/4 /  рпп рпп *((0)$/4*0./-'$/4 /  рпп рпп 1$'' "$)./2#$#/#  0/$' / (+*--4 $!! - ) .Ѷ) /#   1 )/./4 /  рпп рпп "". '*)"/4 /  шп шп --4Ҋ!*-2-  *! 0)0.  /3 .. /. )  0)0.  /3 '*.. . )    /*- ./4 $($/  рпп рпп ** ') -*+ -/4)$/-0./ рпп рпп 0/$'$. ѷ 0 .*)0$' $)"0++'$ ./4 $($/  рпп рпп 4(+$ -*+ -/4 )1 ./( )//4 /  чуѵц чуѵц *((0)$/4# ./ $($/  рпп рпп • 3 +/ 2# -  /#  ! --  $)*(  /3 .. / - '/$)" /* /#  - 2- -*+ -/4-0./ рпп рпп 0/$'  / (+*--4 $!! - )  -$. . !-*( /#  $)$/$' $./-$0/$*)җҘ/4 $($/  рпп рпп $!$/4 /  рпп рпп - *")$/$*)*!).. /*-'$$'$/4$)/-)./$*)/#/$.)*/ $./-$0/$*)җ$Ҙ/4 $($/  рпп рпп  /$' /2*-& $($/  рпп рпп 0.$) ..*($)/$*)) Ѷ//# /$( *!/# /-)./$*)Ѷ!! /. $./-$0/$*)җҘ/4 $($/  рпп рпп  /.#.$ $($/ җ$)*-+*-/ $)#$)Ҙ Ҋ рпп ) $/# -/# *0)/$)")*-/3' +-*!$/*-'*..Ѹ)  - .#җ*-/# -)0 ).') Ҙ/4 $($/  рпп рпп  /*5 *' $)" $($/ җ$)*-+*-/ $) рпп рпп  - .#җҘ/4 $($/  рпп рпп *0/#!-$Ҙ • $)- .+ /*! 0/$' / (+*--4 $!! - ) ...*$/ 2$/#  /$' -1$ ./4 $($/  рпп рпп $/- рп "-*+ -/4-0./ рпп рпп $)1 ./( )/. $) .0.$ $-$ .Ѷ ..*$/ . )  $)/ - ./. $) %*$)/ ) + ) )/-) .0./-'$/4 $($/  рпп рпп  1 '*+( )/./4 /  фр фр 1 )/0- .Ѷ ! -- /3.. /.- *)'4- *")$. /*/#  3/ )/ ) + ) )/ - 2- -*0+/4 /  рпп рпп *-/# -) - 2- -*0+/4 /  чуѵц чуѵц /#/$/$.+-*' /#//# / (+*--4 $!! - ) .2$''- 1 -. $) ) + ) )/*'0/$*)./4 /  рпп рпп 0-0$//4ѵ / ѵ фр фр /# !*- . ' !0/0- ) /3' +-*!$/2$'' 1$'' "$)./ 2#$#/# / (+*--4 $!! - ) .) 0/$'$. ѵ )/ -!-)&-*0+ *' $)"./4 /  рпп рпп -* 0 - -.-0./ рпп рпп  2 '** /*- ./4 /  рпп рпп 0$&./*+/4 /  Ҋ рпп

96 Metcash Annual Report 2019 97  /.#-*0+Ҟ$))$' +*-/рш ху  /.#-*0+Ҟ$))$' +*-/рш хф Notes*/ ./*/# to the!$))$'.// financial ( )/.җ*)/$)0statements Ҙcontinued Notes*/ ./*/# to the!$))$'.// financial ( )/.җ*)/$)0statements Ҙcontinued For the year ended 30 April 2019 For the year ended 30 April 2019 *-/# 4 - ) тп+-$'спрш *-/# 4 - ) тп+-$'спрш

++ ) $3– )!*-(/$*)*).0.$ $-$ . ++ ) $3– )!*-(/$*)*).0.$ $-$ .   рш рч  0((-4// ( )/*!*(+- # ).$1  )*( *!/# '*. -*0+ ڿ ڿ   рш рч )ڦ )ڦ     $)*2)$/-0./ рпп рпп    $)!- .#$/4 /  фр фр  $./-$0/$*).!-*(.0.$ $-$ .*0/.$ /# '*. -*0+ рѶтпсѵу счѵт  /$' -#) $.  -1$ ./4 $($/  рпп рпп /# -/-)./$*).2$/#.0.$ $-$ .*0/.$ /# '*. -*0+ җттѵпҘ җршпѵпҘ  * / )./ "схр3+'*$//$ (/.#++$% Ҋ рпп /# -) /$)*( ҝҗ 3+ ). Ҙ сфхѵч җчшѵцҘ җ$)*-+*-/ $) /# -') .Ҙ  -*!$/ҝҗ'*..Ҙ !*- $)*( /3 рѶфсхѵс җсфрѵуҘ 0).#$)  - 2- /4 /  чуѵц чуѵц  )*( /3 3+ ).  җцчѵпҘ җхшѵцҘ .() $,0*-*(+)4 $($/  рпп рпп  /+-*!$/ҝҗ'*..Ҙ!*-/# 4 - рѶуучѵс җтсрѵрҘ җ$)*-+*-/ $) 2 ') Ҙ   .()$ - 2- /4 /  чп чп  0((-4// ( )/*!$))$'*.$/$*)*!/# '*. -*0+ $( -)  - 2- 3#)" /4 /  хчѵус хчѵус $(' *)-*+ -/4-0./ рпп рпп  рш рч  )ڦ )ڦ  (2#*''4Ҋ*2 (  / )) -рп/4-Ѷ Ҙ 0-$)"/# 4җ    subsidiary following the Group’s acquisition of its remaining 51%  .. /.   ,0$/4$)/ - ./ѵ  ртпѵт ртцѵч ./( '1$0, #. (#. ($ /. - /($ 4/$0, ./$ !* ڿ чф .# .*'-Ѷ  / Ҙ 0-$)" /#  4җ  /.# 3+*-/  -1$ . /4 /  /* -"* *' $)". $($/   - -  $1' .) '*). рѶутфѵх рѶусуѵч )1 )/*-$ . цсрѵп хшцѵс 4ѵ(+)* #/($/. - /($4/$0, ڿрф"($($/ -/.'2#$  /# -0-- )/.. /. ррѵп рпѵх рѵ )/$/$ .2$/#$)/# '*. "-*0+./тп+-$'спрш */'0-- )/.. /. сѶсшцѵш сѶсцпѵу    Certain controlled entities of Metcash Limited, collectively referred to as the ‘Closed Group’, are party to a Deed of Cross 0-)/ 2#$#( /./#  )1 ./( )/. рццѵр рѶртсѵу - ,0$- ( )/.*! җ )./-0( )/Ҙѵ0-.0)//*/#  )./-0( )/Ѷ )/$/$ .2$/#$)/# '*.  -*+ -/4Ѷ+')/)  ,0$+( )/ ршшѵр ршпѵц -*0+/#/#1 '* " )*+/Ҋ$))*/$ 2$/# 2$/#$)/# - ,0$.$/ /$( '$($/.- "-)/ - '$ !!-*(./) '*) !$))$'- +*-/$)") 0 $/  / ! -- /3.. /. рррѵх ррсѵу - ,0$- ( )/.*!/# *-+*-/$*)./сппрѵ) -/#  *!-*..0-)/ Ѷ/#  )/$/$ .2$/#$)/# '*. -*0+Ѷ$)'0 $)" /.# $($/ Ѷ#1  )/)"$' .. /.) "** 2$'' цурѵп цтчѵу "0-)/ /*+4)4*0/./) $)" /.*-'$(.$)/#  1 )/*!2$) $)"0+*!)4*/# - )/$/42$/#$)/# '*. -*0+ѵ /# -)*)Ҋ0-- )/.. /. рхѵр тпѵс */')*)Ҋ0-- )/.. /. рѶсууѵш сѶспуѵр */'.. /. тѶфусѵч уѶуцуѵф    $$'$/$ .   - ) */# -+4' . рѶччфѵх рѶчстѵт )/ - ./Ҋ -$)"*--*2$)". рѵш рѵш )*( /3+4'  ррѵх руѵц -*1$.$*).) */# -0-- )/'$$'$/$ . рстѵх рсцѵф */'0-- )/'$$'$/$ . сѶпссѵц рѶшхцѵу    )/ - ./Ҋ -$)"*--*2$)". рчтѵх рсцѵр (*0)/. 0 /*- '/ +-/$ . рчѵц сѶсрсѵх -*1$.$*).) */# -)*)Ҋ0-- )/'$$'$/$ . ррцѵу ртцѵу */')*)Ҋ0-- )/'$$'$/$ . тршѵц сѶуццѵр */''$$'$/$ . сѶтусѵу уѶуууѵф  /.. /. рѶсппѵу тпѵп    ,0$/4   *)/-$0/ ) */# - ,0$/4 ффшѵс хппѵп /# -- . -1 . җпѵчҘ җпѵцҘ  /$) +-*!$/.ҝҗ0(0'/ '*.. .Ҙ   + )$)"') Ѷтп+-$'җ.+- 1$*0.'4.// Ҙ җфруѵшҘ җрѶсрпѵтҘ #)" .!-*(/# $)$/$' *+/$*)*!/# ) 2*0)/$)"./) - . җфуѵуҘ җффѵцҘ + )$)"') Ѷр4җ- .// Ҙ җфхшѵтҘ җрѶсххѵпҘ +$/'- 0/$*) Ҋ рѶрршѵт  /+-*!$/ҝҗ'*..Ҙ!*-/# 4 - рѶуучѵс җтсрѵрҘ #- 04& җрпшѵфҘ Ҋ $1$ ) .+$  җрсцѵуҘ җрпсѵуҘ /# -(*1 ( )/. Ҋ пѵш '*.$)"')  хусѵп җфхшѵтҘ */' ,0$/4 рѶсппѵу тпѵп 

Ҟ$))$' +*-/рш Metcash Annual Report 2019  /.#-*0+ хц 98  /.#-*0+Ҟ$))$' +*-/рш хх 99 Directors’ declaration continued Notes*/ ./*/# to the!$))$'.// financial ( )/.җ*)/$)0statements Ҙ Directors’*-/# 4 - ) тп+-$'спрш declaration For the year ended 30 April 2019 For the year ended 30 April 2019 *-/# 4 - ) тп+-$'спрш  

++ ) $3–,0$/4Ҋ*0)/ $)1 ./( )/. )*- ) 2$/#- .*'0/$*)*!/#  $- /*-.*! /.# $($/ Ѷ .// /#/ѷ   ,0$/4Ҋ*0)/ $)1 ./( )/.*!/# -*0+- +- . )/*/#..*$/ .) %*$)/1 )/0- .) - ./-0/0- /#-*0"# ,0$/4+-/$$+/$*)$). +-/  рѵ )/# *+$)$*)*!/#  $- /*-.ѷ ' "' )/$/$ .ѵ /.#$)1 ./.+$/'/*.0++*-//# $) + ) )/- /$') /2*-&Ѷ./- )"/# )- '/$*).#$+.) !0) "-*2/#ѵ '/$*).#$+.2$/#*Ҋ $)1 ./*-.- "*1 -) 4*)/-/0'"- ( )/.2#$#''*2/# -*0+/* 3 -$.  $/# -.$")$!$)/$)!'0 ) *-%*$)/*)/-*'*1 -/# .  )/$/$ .ѵ ѵ #  !$))$' .// ( )/.Ѷ )*/ . )  /#   $/$*nal disclosures included in the directors’ report designated as audited, of # - /# -*0+ 3 -$. .%*$)/*)/-*'Ѷ''& 4*+ -/$)" $.$*).- "- 0))$(*0.'4Ѷ- "- ' ..*!*2) -.#$+$)/ - ./ѵ  /.# $($/ - $)*- ) 2$/#/#  Ѷ$)'0 $)"ѷ # +-incipal place of business for all of the Group’s equityҊ*0)/ $)1 ./( )/.$.0./-'$Ѷ2$/#/#  3 +/$*)*! /.#3+*-/ -1$ ./4 / Ѷ $ѵ $1$)"/-0 ) !$-1$ 2*!$/.!$))$'+*.$/$*)./тп+-$'спрш) *!$/.+ -!*-() !*-/# 4 - ) *)/#/ 2#$#+-$(-$'4 '.2$/#0./*( -.$)#$)ѵ / Ѹ)  The following table presents key information about the Group’s$)/ - ./.$)%*$)/1 )/0- .) ..*$/ .ѵ $$ѵ *(+'4$)"2$/#*0)/$)"/) - .җ$)'0 $)"/# 0./-'$)*0)/$)" )/ -+- //$*).Ҙ)  рш рч Ѹ ڿ ڿ  / "($/-*+  . $/$1$/'+$($-  /. 1(      ѵ # !$))$'.// ( )/.) )*/ .'.**(+'42$/# . $.'*. $)++ ) $3ѵсѸ )  ..*$/ . $/#$ ./*- ./4 /  -* -4- /$'$)" тп 0)  схѵп схѵп ѵ # - - - .*)' "-*0) ./* '$ 1 /#//# *(+)42$'' ' /*+4$/. /..) 2# )/# 4 *(  0 )  -( / *' $)"./4 /  -* -4- /$'$)" тп 0)  схѵп схѵп +4' ѵ  /.#3+*-/ -1$ ./4 / җҘ -* -4- /$'$)" тп+-$' рфѵп Ҋ сѵ #$. '-/$*)#. )( !/ --  $1$)"/#  '-/$*).- ,0$- /* ( /*/#  $- /*-.$)*- ) 2$/#. /$*)     сшф*!/#  !*-/# !$))$'4 - ) $)"тп+-$'спршѵ *$)/1 )/0- . тѵ )/# *+$)$*)*!/#  $- /*-.Ѷ.//#  / *!/#$. '-/$*)Ѷ/# - - - .*)' "-*0) ./* '$ 1 /#//# ( ( -.*!/#   *( /4 /  -* -4- /$'$)" тп+-$' уфѵп уфѵп '*. -*0+$ )/$!$ $)++ ) $32$'' ' /*( /)4*'$"/$*)*-'$$'$/$ ./*2#$#/# 4- *-(4 *( .0% /Ѷ4 *( /4 /  -* -4- /$'$)" тп+-$' фпѵп фпѵп 1$-/0 *!/#  *!-*..0-)/ ѵ  /$'-*0+ *' $)"./4 /  -* -4- /$'$)" тп 0)  ушѵп ушѵп -*"- ..$1 - $)"/4 / җҘ -* -4- /$'$)" тп+-$' фчѵч фчѵч  '/*&/4 $($/  - 2- - /$'$)" тп 0)  ушѵп ушѵп ) #'!*!/# *-  )) -рп/4 / җҘ - 2- - /$'$)" тп 0)  Ҋ ушѵп  4 - 2- /4 /  - 2- - /$'$)" тп 0)  ушѵп ушѵп )$/ /4 / җ Ҙ $,0*-2#*' .'$)" тп 0)  цфѵт цфѵт  $,0*-''$) /4 / җ Ҙ $,0*-2#*' .'$)" тп 0)  ххѵц ххѵц  ڿрф"($($/ -/.'$#2 /$)$ ."($ '* *"- */ / 4/. $1- /-*+3#./ ($/. - /($4/$0, ./$!*ڿчф .#.*'-Ѷ / Ҙ 0-$)"/# 4җ ,0$/4$)/ - ./$)/# *(+)4ѵ    .(*$.$ '$(($! ("($/- +*җ-*"- ..$1 ҘѶ& 4 / 4/"($ - 1$.. -"*-($ڿ)фпѵп'*2) -.#$+*!(*- /#$ ) !$.Ҙ #$'.//# -*0+#җ - ,0$- /# 0))$(*0.*). )/*!''.#- #*' -.ѵ*- $)"'4Ѷ-*"- ..$1 $.*0)/ !*-.%*$)/--)" ( )/ѵ !! (. $- /*- ѵ/. - /($4/$0, ڿ$)$)"фр,0$.$/$*)*!$/.- ( -4!*''*2$)"/# Group’s$ .$.0 2#*''4Ҋ*2) (  / )) -рп/4-Ѷ Ҙ 0-$)"/# 4җ 4 ) 4Ѷсу 0) спрш   '$#ѵ / 4/ ($''-*0,$ ($/. - /($./$$1ڿ/*2) -.#$+*!ушѵт $- )$)Ѷ / 4/ /$( ($ڿ/*2) -.#$+*!схѵп $- .Ҙ # -*0+# җ - #/*!*/( .(*.)$(*0$.$*).- ,0$- /# 0) '$)!$) )/$)"4Ѷ& 4*+ -/$/(  #/!*ڿфп(#/ -*)!*+$#.- (2*'$$! ( .0+#*- #/ %*$)/1 )/0- +-/) -.ѵ*- $)"'4Ѷ )$/ /4 / )  $,0*-''$) /4 / - *0)/ !*-.%*$)/--)" ( )/.ѵ

   

 /.#-*0+Ҟ$))$' +*-/рш хш 100 Metcash Annual Report 2019 101  /.#-*0+Ҟ$))$' +*-/рш хч Ernst & Young Tel: +61 2 9248 5555 200 George Street Fax: +61 2 9248 5959 Sydney NSW 2000 Australia ey.com/au GPO Box 2646 Sydney NSW 2001

Independent Auditor's Report to the Members of Metcash Limited

Auditor's Independence Declaration to the Directors of Metcash Limited Report on the Audit of the Financial Report

As lead auditor for the audit of Metcash Limited for the financial year ended 30 April 2019, I declare Opinion to the best of my knowledge and belief, there have been: We have audited the financial report of Metcash Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 30 a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in April 2019, the consolidated statement of comprehensive income, consolidated statement of relation to the audit; and changes in equity and consolidated statement of cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies, and the directors' b) no contraventions of any applicable code of professional conduct in relation to the audit. declaration.

This declaration is in respect of Metcash Limited and the entities it controlled during the financial In our opinion, the accompanying financial report of the Group is in accordance with the Corporations year. Act 2001, including:

a) giving a true and fair view of the consolidated financial position of the Group as at 30 April 2019 and of its consolidated financial performance for the year ended on that date; and

b) complying with Australian Accounting Standards and the Corporations Regulations 2001. Ernst & Young Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under Renay Robinson those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Partner Report section of our report. We are independent of the Group in accordance with the auditor 24 June 2019 independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial report. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial report.

A member firm of Ernst & Young Global Limited A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Liability limited by a scheme approved under Professional Standards Legislation

 /.#-*0+Ҟ$))$' +*-/рш цп  /.#-*0+Ҟ$))$' +*-/рш цр 102 Metcash Annual Report 2019 103 1 pairent assessent for oodill and other intanible assets and the appropriate classification within the consolidated ▪ elected a sample of supplier reates, statement of comprehensie income ased upon the including nonolumetric supplier reates, Wh sinificant o our audit addressed the e audit atter terms of the agreement receied and accrued for during the year and tested whether the supplier reates were correctly calculated and recognised in the At 30 April 2019 the Group’s consolidated statement of ur audit procedures included the folloin correct period financial position includes oodill and other intanible ▪ Assessed the Group’s determination of the assets aountin to illion representin of ▪ onsidered the impact of supplier claims cash eneratin units s used in the during and suseuent to year end on amounts total assets ipairent odel based on our recognised and he directors have assessed oodill and other understanding of the nature of the Group’s intanible assets for ipairent at 0 April 01 As business and the econoic environent in ▪ nuired of management and the irectors, as disclosed ithin ote to the financial stateents the hich the seents operate We also to the eistence of any nonstandard assessment of the impairment of the Group’s goodwill considered internal reporting of the Group’s agreements or side arrangements and other intanible assets incorporated sinificant results to assess ho earnins and oodill udents and estiates specificall concernin factors are onitored and reported 3 nerous contracts such as forecast cashflos discounts rates and terinal ▪ Assessed the cash flo forecasts roth rates assuptions and estiates used b the roup hy significant ow our audit addressed the ey audit matter hese estiates and assuptions are ipacted b future as outlined in ote to the financial perforance aret and econoic conditions inor stateents b considerin the reliabilit of As set out in ote 11 to the financial statements, ur audit procedures included the following the Group’s historical cash flow forecasts, our chanes in certain assuptions can lead to sinificant arious controlled entities within the Group are the nolede of the business and corroboratin ▪ Evaluated the Group’s processes to identify chanes in the recoverable aount of these assets head lessee in relation to a numer of retail stores the data ith eternal inforation here possible onerous contracts reuiring proision Accordinl e considered this to be a e audit atter Group suleases to independent retailers ▪ Evaluated the appropriateness of discount and recognition terinal roth rates applied ith As disclosed within Appendi 1 to the financial ▪ ested the aluation of the onerous contract involveent fro our valuation specialists statements, the assessment of when these proisions y ealuating whether appropriate arrangements are onerous contracts which reuire ▪ ested the atheatical accurac of the udgments and assumptions had een applied proisions to e recognised inoles maing significant ipairent testin odels includin the in determining the unaoidale costs of consistenc of relevant data ith latest oard udgments and estimates concerning factors such as meeting the oligation and the estimate of the approved forecasts retail profitaility epected enefits to e receied under the ▪ Perfored sensitivit analsis on e A key audit matter was whether the Group’s contract assuptions includin discount rates terinal assessment included appropriate consideration of roth rates and E forecasts for each of these factors the roups s and ▪ Assessed the adeuac of the financial report disclosures contained in ote nformation ther than the inancial Report and Auditor’s Report Thereon

Accountin for supplier rebates he directors are responsile for the other information he other information comprises the information included in the Group’s 2019 Annual Report other than the financial report and our Wh sinificant o our audit addressed the e audit atter auditor’s report thereon. We obtained the Directors’ Report that is to be included in the Annual Report, prior to the date of this auditor’s report, and we expect to obtain the remaining sections of Appendi of the financial report outlines the Group’s ur audit procedures included the folloin the Annual Report after the date of this auditor’s report. accountin polic relatin to supplier rebates or supplier ▪ Evaluated the roups processes and controls ur opinion on the financial report does not coer the other information and we do not and will not incoe as the are referred to in the inancial report relatin to the reconition and valuation of epress any form of assurance conclusion thereon, with the eception of the emuneration eport he roup receives rebates and other siilar incentives aounts reconised and classified ithin the and our related assurance opinion fro suppliers hich are deterined based upon a consolidated stateent of coprehensive nuber of easures hich can include volues of incoe n connection with our audit of the financial report, our responsiility is to read the other information inventor purchased sold and the perforance of ▪ Assessed the operatin effectiveness of and, in doing so, consider whether the other information is materially inconsistent with the financial prootional activities relevant controls in place relatin to the report or our nowledge otained in the audit or otherwise appears to e materially misstated We considered this to be a e audit atter as supplier reconition and easureent of voluetric rebates contributed significantly to the Group’s results, purchase value and sales value related f, ased on the wor we hae performed on the other information otained prior to the date of this there are a lare nuber of specific areeents in place supplier rebates and soe of the arraneents reuire udent to be auditor’s report, we conclude that there is a material misstatement of this other information, we are applied in deterinin the tiin of rebate reconition reuired to report that fact e hae nothing to report in this regard

A eber fir of Ernst oun lobal iited A memer firm of rnst oung Gloal imited iabilit liited b a schee approved under Professional Standards eislation iaility limited y a scheme approed under rofessional tandards egislation

 /.#-*0+Ҟ$))$' +*-/рш цс  /.#-*0+Ҟ$))$' +*-/рш цт 104 Metcash Annual Report 2019 105 Responsibilities of the Directors for the inancial Report • valuate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and The directors of the ompany are responsible for the preparation of the financial report that gives events in a manner that achieves fair presentation. a true and fair view in accordance with Australian Accounting tandards and the orportions At and for such internal control as the directors determine is necessary to enable the preparation • btain sufficient appropriate audit evidence regarding the financial information of the entities of the financial report that gives a true and fair view and is free from material misstatement, whether or business activities within the Group to epress an opinion on the financial report. e are due to fraud or error. responsible for the direction, supervision and performance of the Group audit. e remain solely responsible for our audit opinion. n preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using e communicate with the directors regarding, among other matters, the planned scope and timing the going concern basis of accounting unless the directors either intend to liuidate the Group or to of the audit and significant audit findings, including any significant deficiencies in internal control cease operations, or have no realistic alternative but to do so. that we identify during our audit.

Auditors Responsibilities for the Audit of the inancial Report e also provide the directors with a statement that we have complied with relevant ethical reuirements regarding independence, and to communicate with them all relationships and other ur obectives are to obtain reasonable assurance about whether the financial report as a whole is matters that may reasonably be thought to bear on our independence, and where applicable, related free from material misstatement, whether due to fraud or error, and to issue an auditor’s report safeguards. that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Auditing tandards will always detect a rom the matters communicated to the directors, we determine those matters that were of most material misstatement when it exists. isstatements can arise from fraud or error and are significance in the audit of the financial report of the current year and are therefore the ey audit considered material if, individually or in the aggregate, they could reasonably be expected to matters. We describe these matters in our auditor’s report unless law or regulation precludes public influence the economic decisions of users taken on the basis of this financial report. disclosure about the matter or when, in etremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse conseuences of doing so would As part of an audit in accordance with the Australian Auditing tandards, we exercise professional udgment and maintain professional scepticism throughout the audit. We also reasonably be epected to outweigh the public interest benefits of such communication.

• dentify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• btain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. f we conclude that a material uncertainty exists, we are reuired to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadeuate, to modify our opinion. ur conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

A member firm of Ernst oung Global imited member firm of rnst oung Global imited iability limited by a scheme approved under rofessional tandards egislation iability limited by a scheme approved under rofessional tandards egislation

 /.#-*0+Ҟ$))$' +*-/рш цу  /.#-*0+Ҟ$))$' +*-/рш цф 106 Metcash Annual Report 2019 107 ASX information

Additional information required by the Australian Securities Exchange and not shown elsewhere in this report is as follows. The information is current as at 30 June 2019:

Distribution of Equity Securities eport on the udit o the emuneration eport The number of shareholders, by size of holding, in each class of share is: pinion on the emuneration eport Size of holding Number of shareholders 1 – 1,000 5,387 We hae audited the emuneration eport included in pages 46 to 58 o the directors report or 1001 – 5,000 8,938 the ear ended pril . 5,001 – 10,000 3,148

n our opinion the emuneration eport o etcash imited or the ear ended pril 10,001 – 100,000 2,537 complies with section o the orportions At 100,001 – 9,999,999,999 108 Total 20,118 esponsibilities There were 1,147 shareholders holding less than a marketable parcel of Metcash ordinary shares. he directors o the ompan are responsible or the preparation and presentation o the emuneration eport in accordance with section o the orportions At . ur Twenty largest holders of quoted shares responsibilit is to epress an opinion on the emuneration eport based on our audit conducted The names of the 20 largest holders of quoted shares are: Number Percentage in accordance with ustralian uditing tandards. Name of shares of shares HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 371,222,157 40.83% J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 173,748,601 19.11% CITICORP NOMINEES PTY LIMITED 125,460,837 13.80% NATIONAL NOMINEES LIMITED 42,259,242 4.65% rnst oung BNP PARIBAS NOMINEES PTY LTD 24,150,591 2.66% BNP PARIBAS NOMS PTY LTD 13,148,536 1.45% CITICORP NOMINEES PTY LIMITED 7,867,261 0.87% ena obinson HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA 5,148,255 0.57% artner AMP LIFE LIMITED 3,644,013 0.40% dne HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2 2,992,757 0.33% une HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 1,815,391 0.20% BNP PARIBAS NOMINEES PTY LTD 1,754,000 0.19% HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 1,703,775 0.19% NATIONAL NOMINEES LIMITED 1,200,000 0.13% CS THIRD NOMINEES PTY LIMITED 969,454 0.11% POWERWRAP LIMITED 952,664 0.10% BNP PARIBAS NOMS PTY LTD 884,953 0.10% NATIONAL NOMINEES LIMITED 808,250 0.09% SANDERS TC PTY LTD 700,000 0.08% RAY SANDERS SUPERANNUATION FUND PTY LTD 600,000 0.07% Total 781,030,737 85.90%

Substantial Shareholders The following is extracted from the Company’s register of substantial shareholders: Name Number of Shares Pendal Group Ltd 117,225,491 Allan Gray Australia Pty Ltd 95,261,951

member irm o rnst oung lobal imited Voting Rights iabilit limited b a scheme approed under roessional tandards egislation All ordinary shares (whether fully paid or not) carry one vote per share without restriction.

 /.#-*0+Ҟ$))$' +*-/рш цх 108 Metcash Annual Report 2019 109 Corporate Information

Directors Robert Murray (Chair) Jeff Adams (Group CEO) Fiona Balfour Anne Brennan Tonianne Dwyer Murray Jordan Helen Nash Company Secretary Julie Hutton Share Register Boardroom Pty Limited GPO Box 3993 Sydney NSW 2001 Freecall: 1800 655 325 Telephone: 61 2 9290 9600 Auditor Ernst & Young 200 George Street Sydney NSW 2000 Australia Telephone: 61 2 9248 5555 Metcash Limited ABN 32 112 073 480 1 Thomas Holt Drive Macquarie Park NSW 2113 PO Box 557 Macquarie Park NSW 1670 Telephone: 61 2 9741 3000 Metcash Supermarkets & Convenience (Head Office) 1 Thomas Holt Drive Macquarie Park NSW 2113 PO Box 557 Macquarie Park NSW 1670 Telephone: 61 2 9741 3000 Australian Liquor Marketers (Head Office) 1 Thomas Holt Drive Macquarie Park NSW 2113 PO Box 557 Macquarie Park NSW 1670 Telephone: 61 2 9741 3000 Independent Hardware Group (Head Office) 19 Corporate Drive Heatherton VIC 3202 Telephone: 1300 880 440 Corporate Governance A copy of the Corporate Governance Statement can be found on our website. Visit www.metcash.com/corporateinformation/corporate-governance www.metcash.com