ANNUAL GENERAL MEETING February 2018

Transcription

1 ANNUAL GENERAL MEETING February 2018

2 DISCLAIMER To the extent that statements in this presentation do not relate to historical or current facts, they constitute forward-looking statements. All forward-looking statements herein are based on certain estimates, expectations and assumptions at the time of publication of this presentation and there can be no assurance that these estimates, expectations and assumptions are or will prove to be accurate. Furthermore, the forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or financial position to differ materially from any future results, performance or financial position expressed or implied in this presentation. Many of these risks and uncertainties relate to factors that are beyond METRO AG's ability to control or estimate precisely. The risks and uncertainties to which these forward-looking statements may be subject include (without limitation) future market and economic conditions, the behavior of other market participants, invest in innovative sales formats, expand in online and multichannel sales activities, integrate acquired businesses and achieve anticipated cost savings and productivity gains, and the actions of government regulators. Readers are cautioned not to place reliance on these forward-looking statements. METRO AG does not undertake any obligation to publicly update any forward-looking statements or to conform them to events or circumstances after the date of this presentation. This presentation is intended for information only and should not be treated as investment advice. It is not intended as an offer for sale, or as a solicitation of an offer to purchase or subscribe to, any securities in any jurisdiction. Neither this presentation nor anything contained therein shall form the basis of, or be relied upon in connection with, any commitment or contract whatsoever. This presentation may not, at any time, be reproduced, distributed or published (in whole or in part) without prior written consent of METRO AG. The previous year s financial figures as of 30 September 2016 correspond to those reported in the combined financial statements of the former METRO Wholesale & Food Specialist Group (now operating as METRO). This presentation includes supplemental financial measures which are or may be non-gaap financial or operative measures. These measures should not be viewed in isolation as alternatives to financial measures presented in accordance with IFRS. Other companies that disclose similarly titled measures may calculate them differently. All numbers shown are before special items, unless otherwise stated. All amounts are stated in million euros ( million) unless otherwise indicated. Amounts below 0.5 million are rounded and reported as 0. Rounding differences may occur. 2 METRO AG Annual General Meeting 2018

3 AGENDA 01 The new METRO 02 Financials FY 2016/17 03 Strategy METRO Wholesale 04 Strategy Real 05 Strategy Real Estate 06 Outlook 2017/18 3 METRO AG Annual General Meeting 2018

4 01 THE NEW METRO 4 METRO AG Annual General Meeting 2018

5 WHERE WE COME FROM Traditional Retail We define ourselves through prodcuts and formats. How can we scale those? 5 METRO AG Annual General Meeting 2018

6 WHERE WE NEED TO GO! Traditional Retail Modern Retail We define ourselves through prodcuts and formats. How can we scale those? Our customers are the foundation of our company! What else can we do for them? 6 METRO AG Annual General Meeting 2018

7 FROM DOMINANCE TO RELEVANCE DOMINANCE SIZE PURCHASING POWER MASS MARKETING FULL CONTROL STANDARDISATION ANONYM 7 METRO AG Annual General Meeting 2018

8 FROM DOMINANCE TO RELEVANCE DOMINANCE RELEVANCE SIZE PURCHASING POWER MASS MARKETING FULL CONTROL STANDARDISATION ANONYM CUSTOMER PROXIMITY LOCAL PARTNER TAILORED OFFERS SOLUTION DRIVEN PERSONAL RELATIONSHIPS COMMUNITY BUILDING 8 METRO AG Annual General Meeting 2018

9 THE NEW METRO: MORE FOCUSED, CLOSER TO THE CUSTOMER Greater Focus Increased Flexibility Acceleration of Transformation Strengthening Innvoation 9 METRO AG Annual General Meeting 2018

10 IN LINE WITH OUR MID-TERM AMBITIONS FY 2016/17 +0,5% Mio. 1,55 56% LfL Sales Growth 1 EBIT Earnings per 1 Share Free Cash Flow Conversion 1 before special items 10 METRO AG Annual General Meeting 2018

11 2016/17 11 METRO AG Annual General Meeting 2018

12 A YEAR OF ENGAGING PEOPLE 12 METRO AG Annual General Meeting 2018

13 A YEAR OF CONNECTING CUSTOMERS... across continents... across experiences... across suppliers 13 METRO AG Annual General Meeting 2018

14 A YEAR FULL OF INNOVATION... at the last mile... in brick and mortar after check-out Significant sales growth of organic and inorganic FSD New concepts and remodelling for dedicated customer groups Click & Collect and Transport after checkout Services 14 METRO AG Annual General Meeting 2018

15 A YEAR OF DIGITIZATION Analysis of value creation opportunities Expansion of support Large product variety also online Supporting innovative business concepts 4 programs successfully conducted Development and implementation of digital solutions Targeted customer support Investments in digital companies One of the fastest growing marketplaces In average 19 Mio. visitors per month 15 METRO AG Annual General Meeting 2018

16 A YEAR OF PROGRESS REGARDING SUSTAINABILITY Take on global challenges and translate into own commitments Reduce carbon footprint by 50% by 2030 Reduce food waste in own operations by 50% by 2025 Increase share of regional, fair trade products Observe consumer trends... Expand range of sustainably caught and farmed fish products to 80% by th time 16 METRO AG Annual General Meeting 2018

17 02 FINANCIALS 17 METRO AG Annual General Meeting 2018

18 SALES IN FY 2016 / 17 % FY 2015/16 FY 2016/17 Like-for-like growth 0,2% 0,5% METRO Wholesale 0,6% 0,9% thereof Food 2,1% Real -1,1% -1,0% Reported growth -2,5% 1,6% METRO Wholesale -2,3% 3,0% Real -3,3% -3,1% Sales share of respective sales lines Delivery: METRO Wholesale 12,8% 15,6% Online: Real 0,9% 1,4% Main growth drivers: Regional positive developments Delivery Online Business Focus customers: HoReCa +4,1% 1 Trader +5,7% Trader-countries: Romania, Poland, Moldowa, Ukraine; ² LfL 18 METRO AG Annual General Meeting 2018

19 EBIT IN FY 2016 /17 in Mio. / % FY 2015/16 FY 2016/17 EBIT before SI METRO Wholesale thereof FX 37 Real Others / Consolidation EBIT margin 3,0% 3,0% METRO Wholesale 3,6% 3,7% Real 1,4% 1,1% Real estate gains EBIT in line with last year Supported by Solid developments in country portfolios FX support Higher real estate gains Hongkou Chengdu EBIT ~80 Mio. EBIT ~30 Mio. 19 METRO AG Annual General Meeting 2018

20 FREE CASHFLOW IN FY 2016/17 in Mio. GJ 2015/16 GJ 2016/17 EBITDA Special items in EBITDA EBITDA reported Cashflow- in NWC CAPEX Free Cash Flow Conversion Rise of 13% points to 56% driven by: Lower special items Improvement in NWC Free Cash Flow Free Cash Flow Conversion in % 43% 56% Net debt (30. Sept.) Adjusted for positive special item from sale of METRO Vietnam (445m EUR) 2 Capex, excluding M&A and excluding finance lease extensions. 20 METRO AG Annual General Meeting 2018

21 FROM EBIT TO EPS IN FY 2016/17 in Mio. before SI FY 2015/16 FY 2016/17 EBIT Net financial result EBT Tax rate in % 38,7% 34,9% Net income EPS in 1,33 1,55 Includes one-time tax income ~0,10 Proposed DPS in 0,70 21 METRO AG Annual General Meeting 2018

22 SHARE PRICE DEVELOPMENT Prior to Demerger Since Listing (07/17 02/18) MEO.DE , ,18 +18,8% Share price ( ) B4B.DE 19 18, , , , ,5 14 METRO AG DAX MDAX EURO STOXX Retail , , , , Change -2.0% -2.3% 3.1% -3.2% B4B-DE 22 METRO AG Annual General Meeting 2018

23 HIGHLIGHTS Q /18 Sales growth EBITDA / EBITDA-Margin 3 Reported 1 : 1,5% LfL: 0,8 % Delivery 2 : >28 % Online (Real): ~45 % EBITDA: 608 Mio. (PY: 608 Mio. ) Margin: 6,0% (PY: 6,0 %) Free Cashflow (FCF) 4 NWC: -44 Mio. 5 CAPEX: -26 Mio. 5 FCF: -70 Mio. 5 1 Constant currency 2 Wholesale delivery organic and M&A; 3 EBITDA including earnings contributions from real estate transactions; 4 EBITDA - capex excluding finance lease extensions and M&A +/- change in NWC; 5 vs PY 23 METRO AG Annual General Meeting 2018

24 VIDEO 24 METRO AG Annual General Meeting 2018

25 03 STRATEGY METRO WHOLESALE 25 METRO AG Annual General Meeting 2018

26 page 26 OUR AIM IS

27 OUR AIM IS TO CONTRIBUTE TO OUR CUSTOMERS SUCCESS! page 27

28 OUR PURPOSE We relentlessly seek customer understanding Trustworthy and personal relationships We go the extra-mile We inspire with expertise and unique solutions We win when our customers win 28 METRO AG Annual General Meeting 2018

29 BASED ON A STRONG FOUNDATION Engaged employees Focused on adding value for our customers Improving customers satisfaction EEI Engagement survey Value Creation Plans Net Promoter Score Industry average ~ 64 % 2 Sales growth Assortment amendments Expansion Innovation In 17 countries, all with positive Scores 335 Tsd. Customer Feedbacks Tsd. Contacts made Source: company information; 1 internal METRO survey result based on the Aon Hewitt Methodoly, Survey conducted in May 2017; 2 Global Retail-Benchmark 2017 accroding to Aon Hewitt Methodology; ³ as of 31. Jan METRO AG Annual General Meeting 2018

30 METROS VALUE CREATION POTENTIAL Five strategic growth levers Channels Warehouse Delivery Franchising Customers HoReCa 1 2 Expansion Delivery Trader Tailored offers, formats and services 3 Franchise Roll Out SCOs 4 Operational Excellence 5 Solutions and knowledge transfer 30 METRO AG Annual General Meeting 2018

31 SUPPORTED BY OUR GUIDING PRINCIPLES 31 METRO AG Annual General Meeting 2018

32 OUR WAREHOUSES CUSTOMER-ORIENTED Customer-oriented assortments From product to solution Customer-oriented store formats Place of inspiration and exchange Focus category food: +2,1% LfL sales growth 13 new store openings in 2016/17 In-store trainings Source: company information 32 METRO AG Annual General Meeting 2018

33 DELIVERY ESSENTIAL GROWTH LEVER Results 4,6 Bn Sales Yearly average sales growth of +30% since 2009 Up to 15 Mio. delivery sales per store possible Strategic value Increases the relevance for our customers Strengthening customer relationship Share of wallet increase Source: company information 33 METRO AG Annual General Meeting 2018

34 FRANCHISE WE SUPPORT AND PROFESSIONALISE OUR TRADER CUSTOMER BASE Growth opportunities Development of large scale network enabling local entrepreneurs to thrive in their community new Franchise-Shops in Q1 2017/18 Strategic value Compelling Value Proposition and support in execution drives sell in and sell out. Sustainable partnership Personal relationship and digital innovations are the foundation for sustainable partnership. 34 METRO AG Annual General Meeting 2018

35 ENHANCE OPERATIONAL EXCELLENCE Purchasing Logistics Focus on Cashflow Creation of synergies through purchasing cooperations New distribution centre strategies New distribution center opened in Germany CAPEX allocation based on value creation plans NWC optimization 35 METRO AG Annual General Meeting 2018

36 DIGITIZATION A GREAT POTENTIAL HoReCa - one of the largest industries 420 Bn. 1 Sales 1,8 Million Entrepreneurs Millions of customer contacts 120 Bn. purchasing volume 1 But hardly digitalised Fragmented market Lack of knowledge and time on the part of the entrepreneurs Scepticism regarding costs vs use 1 Source: Euromonitor; figures referring to european market only 36 METRO AG Annual General Meeting 2018

37 CUSTOMER BENEFITS OF DIGITAL TOOLS PROVEN Exemplary results of our pilots conducted in five european megacities +40 % -10 % +10% -15% <5% 1-3h Average Bon increase COGS reduction Sales Food waste "No Show"- rate Time savings per day Our target: significant reinforcement of our customers, to ensure their success in a long-term and sustainable way. 37 METRO AG Annual General Meeting 2018

38 THE ENTRY INTO DIGITALIZATION: VISIBILITY Our target: Building the largest digital HoReCa-Community. 38 METRO AG Annual General Meeting 2018

39 ONE COMMON DENOMINATOR 39 METRO AG Hauptversammlung 2018

40 ONE COMMON DENOMINATOR PASSION 40 METRO AG Annual General Meeting 2018

41 04 STRATEGY REAL 41 METRO AG Annual General Meeting 2018

42 REAL REDEFINITION OF BUSINESS MODEL Outstanding product variety and quality Strong emphasis on service Experience and Multi-channel sales approach 42 METRO AG Annual General Meeting 2018

43 REAL.DE One of the fastest growing e-commerce platform in Germany 3rd biggest marketplace behind Amazon and Ebay 1 12 Mio. articles out of product categories offered by ~5.000 marketplace sellers² Ø 19 Mio. visitors per month² 1,1 Mio. buying customers in Q1 2017/ Mio. Gross Merchandise Value in Q1 2017/18 1 source: Mulit-Channel in Zahlen, Mulit-Channel-Day 2016 by plentymarkets; 2 based on company own data resource, 31. January METRO AG Annual General Meeting 2018

44 REAL INCREASE EFFICIENCY Purchase cooperations Tarif negotiations Bundling central functions Create Synergies Agreement between German trade Union ver.di and Real to establish competitive salary structures and fair working conditions 44 METRO AG Annual General Meeting 2018

45 FOR OUR COLLEAGUES 45 METRO AG Annual General Meeting 2018

46 05 STRATEGY REAL ESTATE 46 METRO AG Annual General Meeting 2018

47 REAL ESTATE: SUSTAINABLE VALUE CREATION Successful project developments FY 2016/17 strong project strong pipeline project pipeline Hongkou Chengdu Sustainable value creation While strengthening the operational business EBIT ~80 Mio. EBIT ~30 Mio. 47 METRO AG Annual General Meeting 2018

48 06 OUTLOOK 48 METRO AG Annual General Meeting 2018

49 OUTLOOK FOR 2017/18 Guidance 1: mid-term ambition confirmed FY 2016/17 FY 2017/18 Sales growth in local currency 1,1% 1,1% LFL Sales Growth 0,5% 0,5% Reported EBITDA excl. Real estate gains Mio. 2 c. 10% growth 1 At constant FX and before portfolio measures 2 Reported EBITDA 2016/17 of 1,611m less 175m of real estate gains 49 METRO AG Annual General Meeting 2018

50 SUCCESS FACTOR #1

51 SUCCESS FACTOR #1

52 ANNUAL GENERAL MEETING February 2018

53 METRO AG GJ 2016/17 Ergebnispräsentation