MADE TO TRADE. Annual Press Conference Short Financial Year December MADE TO TRADE. FY 2012 Results Presentation 0

Transcription

1 MADE TO TRADE. Annual Press Conference Short Financial Year December 2013 MADE TO TRADE. FY 2012 Results Presentation 0 20 March 2013 METRO AG 2013

2 Overview 1 Strong Progress Made in Financials FY 2013 (9M) 3 Strategic Update 4 Outlook 1

3 We Have Taken Action Customer Relevance Increased Improved product ranges Extended sales channels Introduced new store formats New services Competitiveness improved Cost Focus Continued Headquarters Operations Active Portfolio Steering / Focus on Cash Flow Sale of non-core / underperforming assets Disciplined capex Sales up by 0.9% 1 EBIT up by 3.0% Net debt down by 2.3billion METRO is today significantly better positioned, both financially as well as strategically 1 Adjusted for portfolio changes and FX 2

4 Active Portfolio Management Sale of MAKRO Cash & Carry UK concluded in July 2012 Media Markt exit China concluded on 28 February 2013 Disposal of Real Eastern Europe ( ) concluded in RU, RO, UA Selective store closures Review partial IPO of METRO Cash & Carry Russia 1 METRO Cash & Carry 14 Media-Saturn (including 7 closedowns in China) 41 Real (including 39 disposals in Eastern Europe) Freeing up cash to grow the core business and strengthening the balance sheet 3

5 Overview 1 Strong Progress Made in Financials FY 2013 (9M) 3 Strategic Update 4 Outlook 4

6 Financial Priorities 2013 Improvement of cash flow from operating and investing activities as well as strengthening of balance sheet Assets Balance Sheet Equity Debt Optimisation of opex and capex efficiency Stabilisation and improvement of credit rating Reliable guidance and forecasting towards capital markets 5

7 2013 All Targets Achieved 9M 2012 FY 2013 (9M) Change Guidance Sales ( million) 47,380 46, % Guidance-relevant sales growth % EBIT ( million) % Operating & investing cash flow ( million) -2,695-1,021 1,674 Net debt ( million) 7,734 5,391 2,343 Capex ( million) % New store openings (number of) % EPS ( ) % 1 Adjusted for portfolio changes and FX We GREW our business, IMPROVED our earnings and cash flow and STRENGTHENED our balance sheet 6

8 Pro-forma 2012/13 EBIT in new Reporting Structure EBIT EBIT Margin FY 2012/13 FY 2012/13 million old new old new METRO Cash & Carry 934 1, % 4.4% Media-Saturn % 1.4% Real % 1.4% Galeria Kaufhof % 7.4% Real Estate Others Consolidation METRO GROUP 2,000 2, % 3.0% Exceptional EBIT contributions FY 2012/13: New Reporting Changes: Less administrative burden Focus on key real estate value drivers Better comparability with competitors Standardized incentives (WholeCo results) 245 million capital gains from sale and leaseback transactions 75 million from portfolio changes 7

9 Achievements (1) 1. Cost Savings Measures & Discipline Efficient shared service centres Less consultancy fees & reduced IT expenses Permanent cost focus & awareness: METRO Cash & Carry: Country HQs and store base; reduced expansion capex Media-Saturn: Personnel and advertising expenses in particular Real: HQ and store base Galeria Kaufhof: HQ and store base (also from store closures) 2. Cash Flow Strongly Improved Operating cash flow improved by more than 300 million also due to better net working capital management Cash flow from investing activities improved by more than 1.3 billion, mainly due to Higher inflow from divestments (Real Eastern Europe) More disciplined cash capex 3. Net Debt Significantly Reduced Reduction driven by sale of Real Eastern Europe and more disciplined capex Expected net debt of c. 2 billion as at 31/12/2013 8

10 Achievements (2) 4. Disciplined Capital Expenditure Expansion capex: c. 150 million 34 new store openings (10 METRO Cash & Carry, 20 Media-Saturn and 4 Real) Cash Committee ensures effective use of funds for METRO Cash & Carry 5. Efficient Inventory Management Significant inventory reduction supported net working capital METRO Cash & Carry reduced non-food inventories significantly Disposal of Real Eastern Europe led to the strong decrease at Real 6. Low interest rate environment with positive impact on interest result Well-balanced maturity profile and refinancing 2013/14 already completed Excellent standing on short and long-term debt capital markets Redemption of high coupon bonds will lead to strongly improved interest result 7. Special Items Significantly Reduced Positive special items relating to disposal of Real Eastern Europe Offset by measures to optimise portfolio, enhance efficiency and provide for the rental shortfall at Praktiker freehold locations 9

11 Summary FY 2013 Guidance met Sales and EBIT increased despite still challenging market conditions Strengthened Balance Sheet Significant net debt reduction Improved cash flow Disciplined and more focused capital expenditure Better Net Working Capital Management Successful inventory clean-up Refinancing 2013/14 already completed Strategic focus and strengthened balance sheet are preconditions for future success 10

12 Overview 1 Strong Progress Made in Financials FY 2013 (9M) 3 Strategic Update 4 Outlook 11

13 METRO Cash & Carry Ambition Market Leadership in well defined sectors through unique product ranges and strong focus on B2B solutions that make our customers more competitive Business model To be fully adjusted to most relevant target groups Category strategies tailored to create additional value for customers Services to be enhanced and customer relevance increased Formats to be adjusted accordingly Cost discipline as a mandatory core element Organisational adjustments Managing Director empowered with full authority to adjust local business model Administration streamlined Non-food integrated into a group-wide structure Chief Restructuring Officer organisation installed Shared service centre operations well established and to be extended 12

14 Seite 13 13

15 Customer Relevance Increased Product Ranges Own brand sales 3.8 billion New products for HoReCa and Trader Focused non-food range Value Added Services / Solutions Delivery grew by nearly 20% to 2.0 billion (8.9% of sales) Number of Trader franchisees increased strongly from 4,014 to 6,023 stores MasterClasses (Cooking Trainings) Trader Support Programme New Store concepts adapted to local and regional market potentials Delivery Sales Store Remodellings in Milan, Rome & other big cities in billion Low Cost -Cash & Carry METRO Piazza Affari La Casa dell Horeca (exclusively for HoReCa-customers) 1.2 9M %CAGR 1.6 9M M

16 Update METRO Cash & Carry Germany Business Model Redefined Review of Core Target Groups Focus on HoReCa and Traders (butchers, bakers) Main competence and differentiator is food Aim to continue to attract SCO through food excellence New Product Ranges Introduced New basket definition for Core Target Groups New Mediterranean product ranges (introduced from France, Spain, Italy) Focused non-food approach SKU range reduced, strategic review process started Cost Restructuring Completed Store Remodelling Review of all locations regarding commercial structure of catchment area, penetration, required adjustments 15

17 METRO Cash & Carry Germany: Cologne-Godorf Remodelling Store Facts Opened in 1967, remodelled in 2013 Sales split: 55% SCO, 33% HoReCa, 12% Trader 15,465m² sales area (prev. 16,815m²) Change Process Regular customer panels and employee committees Analyses of competitors and customers 5 promises to the customer: quality, time, regionality, price, service Main Changes Larger F+V, fresh fish and extended delivery sales area New, more customer-friendly and efficient checkout system 5x more space allocated for delivery Reduced Non-food assortment: -10,000 SKUs Better customer traffic flow management (e.g. wider aisles) Improved attractiveness and in-store visibility (e.g. new façade and range-specific lighting concepts, lower shelf height) New designated sales areas Showcase Rioba bar Before After 16

18 METRO Cash & Carry Results: Quarterly Development LFL Sales in % EBIT in million Q Q Q Q Q Q Strong sequential like-for-like sales improvement in Germany, Western and Eastern Europe EBIT-margin stabilised at 2% (1-9/2013) 17

19 Strategic Focus Areas Strong differentiation through exceptional food competence New non-food procurement and sales strategy Delivery strategy Further roll-out of new store concepts 50 years METRO Cash & Carry Further stock streamlining Ongoing cost structure review Exploring accelerated growth opportunities 18

20 New brand positioning: YOU & METRO YOU & METRO is the new brand appearance and at the same time also the new positioning of METRO Cash & Carry Relationships based on partnership are core of our business In focus of the advertising campaign are Our unique customers their entrepreneurship, their dedicated work, their passion their expertise AND Our commitment to making them successful Our unique assortment, our solutions, our services, our motivation, our promise to continuously improve ourselves 19

21 50 years METRO Cash & Carry METRO Cash & Carry will celebrate its 50 th anniversary in 2014: 27 October 1964 opening of the first METRO Cash & Carry wholesale store in Mülheim an der Ruhr Expansion into other European countries Starting from1996 Tapping of the Asian market with market entry into China Anniversary celebrations throughout the year 2014 with numerous events and special campaigns for all customers, partners and employees Focus on the entrepreneurship of our customers A unique opportunity for presenting the New METRO : A company with strong roots, unique competences and the will to uncompromisingly focus on the customer 20

22 Media-Saturn Ambition Media Markt and Saturn: Europe s leading seamless shopping experience in consumer electronics -> no-line commerce Redcoon: Europe s leading consumer electronics online pure player with a big product range and the lowest prices Business model Media Markt and Saturn Large product range online (150,000 + SKUs targeted) with selected products in stores (20,000 SKUs targeted) Hardware and (digital) content Competitive price position Value added services Playing all channels, using the benefit of the store base as an asset Continued effort to improve cost position Organisational adjustment New CFO since April 2013 New Chief Procurement Officer joined in July 2013 Business model Redcoon The new Media Markt -> the positioning of Media Markt in the 90 s: biggest choice, lowest price Large product range online (150,000 + SKUs targeted) -> no department store or market place Lowest costs Sharing purchasing and logistics with Media Markt and Saturn Organisational adjustment New CEO and Chief Procurement Officer since summer

23 Customer Relevance increased (1) Own Brand Sales in million Product Ranges & Pricing Price competitiveness increased significantly Strong growth in own brands Strong market share gains in smartphone sales (+140bps) Sales Channels Total market share grew in 9 out of 15 countries Share of online sales increased (+75% to 848 million) Online market share increased in all countries % 144 Online Sales in million % %-points Austria 23.8% 0.1% Belgium 13.4% 1.3% Germany 17.1% 0.8% Greece 10.5% 0.6% Hungary 12.1% -2.0% Italy 13.7% 0.0% Luxembourg 27.8% 1.4% Netherlands 17.7% -0.5% Poland 13.5% -0.1% Portugal 6.7% -0.4% Russia 3.6% 0.1% Spain 13.0% 1.3% Sweden 10.5% 0.8% Switzerland 12.9% -0.8% Turkey 4.2% -0.3% 9M M M M

24 Customer Relevance increased (2) Market Presence and Store Network review Saturn switched to Media Markt in various countries -> Two-label strategy no longer relevant in some countries (ES, CH, TR, BE) 14 stores closed Stores rightsized (i.e. Sweden -30%) Store Format Adjustments Cooperation with Carphone Warehouse started -> focus on connected world as shop in shop solution Pilot with low cost Media Markt in Hungary Currently testing separate area of 1,000 m² at Media Markt store 1,200 SKUs at entry price level No cannibalisation effects 23

25 Media-Saturn Results: Quarterly Development LFL Sales in % Germany Total EBIT in million Q Q Q Q Q Q Development in Q2 due to lack of major sport events Strong development in Germany Weak economies still impacting business in certain markets Q3: significant progress made: Margin stabilized Cost position further improved Stronger effectiveness in Purchasing 24

26 Media-Saturn: Consequent Further Development of Governance The further development from a person-oriented towards a capital-based governance structure which was designed by all shareholders of Media-Saturn has been implemented and was confirmed in court Court decisions on the Advisory Board (Beirat) of Media-Saturn-Holding GmbH ( MSH ) Action brought by Kellerhals s company Convergenta challenging the establishment of the Advisory Board finally dismissed by courts Arbitral award (arbitration proceedings initiated by METRO) confirms METRO s view on the Advisory Board s competences concerning MSH and rules on majority requirements: decisions require simple majority (held by METRO) Advisory Board in place Advisory Board commenced its work in December 2012 thus being in practical effect for more than one year 25

27 Strategic Focus Areas Continue transformation to absolute customer centricity Further enhance Omnichannel Approach (Front-end design, additional SKUs, connectivity in the store, online services, etc.) Intensification of engagement in digital content Additional cost cutting initiatives Rightsizing wherever necessary Enhanced supplier relationship management 26

28 Real: Customer Relevance Increased Product Ranges Own brand sales: 1.0 billion Launch of new sub-price entry own brand range >60 new F+V concept modules launched (like-for-like: +5%) Sales Channels New multichannel online model launched New Store Formats Successful flagship store opening in Essen and Magdeburg Product ranges: new ultra-fresh concepts combined with strong nearfood and non-food Marketing: better customer orientation through wider aisles and new visual merchandising concept Attractive promotional area at the store entrance Implementation of touchscreens to drive multichannel approach 27

29 Real Results: Quarterly Development LFL Sales in % EBIT in million Germany Total Q Q Q Q Q Q Satisfactory sales development in Germany EBIT improved by 3 million vs 9M

30 Strategic Focus Areas Further rollout of territorial strategy to better canvas catchment area Strengthening of entrepreneurial store management Strict cost control F+V: Accelerated rollout of concept module to >160 stores Strong Meat and sausage competence to be further emphasized Destination category Capture growth potential Clear competitor differentiation Rollout of Essen flagship concept under review Active nationwide location search for Drive concept rollout 29

31 Customer Relevance Increased Product Ranges Own Brand sales: 390 million Stronger co-operation with METRO Cash & Carry Integration of premium brands New Store Formats Remodellings with significant impact on customer satisfaction and sales Sales Channels Online: +139% to 24 million +139% Before After Online Sales in million 10 9M M

32 Galeria Kaufhof: Quarterly Development LFL Sales in % EBIT in million Q Q Q Q Q Q Sustained strong like-for-like development EBIT improved quarter by quarter vs prior year overall by 8 million vs 9M

33 Strategic Focus Areas Optimising store network and real estate use in Germany Further development of multichannel retailing activities Improving cost structures Introducing new brands New store opening in Belgium & Market entry into Luxemburg 32

34 Overview 1 Progress Made in Financials FY 2013 (9M) 3 Strategic Update 4 Outlook 33

35 Sustainability Climate protection target 2020: Reduce GHG emissions by 20% from 309 kg/m² in 2011 to 247 kg/m² in 2020 Successful step: METRO GROUP achieved top values in the CDP climate performance ranking 2013: 97 out of 100 points; performance A- (2012: 84/100 points; performance C) Long-term incentive for top management: Sustainability targets will account for 25% Our Overall Ambition: The aim of METRO GROUP's sustainability management is to ensure the company's future in an economically responsible way 34

36 Outlook 2013/14 billlion FY 2012/13 FY 2013/14 Sales growth 2,3-1.4% >0% LFL sales growth -1.3% ~0% EBIT before special items <<2,0 Adjusted EBIT before special items 3,4 1.7 >1.7 Capex 1.2 <1.6 Net debt 5.4 <5.4 Number of new store openings 91 ~70 1 Pro-forma 2 Adjusted for portfolio changes 3 Based on the assumption of virtually unchanged exchange rates 4 Adjusted for significant real estate transactions and portfolio changes 1 35

37 Back to Attack : Sustainable Value Creation Absolute and uncompromising focus on Generating incremental value for our customers Optimising product ranges and enhancing services Intensifying our presence in new sales channels Improving continuously our cost structures Strengthen organisational effectiveness and further enhance leadership culture Generating sustained high cash flows and using them in the right way by keeping the right balance between Focused investments Reducing debt Dividends GROW our business, IMPROVE earnings and cash flow, STRENGTHEN our balance sheet Continue to STRENGTHEN our people 36

38 MADE TO TRADE. Annual Press Conference Short Financial Year December