GENERAL MEETING 19 February 2016
AGENDA 01 METRO GROUP Transformation I 02 Financial KPIs GJ 2014/15 03 Strategic Update 04 Outlook 2015/16 05 METRO GROUP Transformation II METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 1
TRANSFORMATION OF METRO GROUP METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 2
DER VERNETZTE KUNDE. THE CONNECTED CUSTOMER. 47% Use their smartphones for purchasing products online, compared to 2013 this is a rise by 17% (Source: PWC, 2015) 2 in 3 Shoppers consider available in-store information insufficient (Source: think with Google, 2014) 82% Of smartphone users turn to their devices to help them make a product buying decision (Source: think with Google, 2015) 71% Believe their mobile devices have become more important for their in-store experience 60% Think it s important to find out if a product is available before going to the store (Source: IBM Institute for Business Value, 2015) 42% Of in-store consumers conduct research online while in stores (Source: think with Google, 2014) (Source: think with Google, 2015) 34% Follow their preferred brands or retailers on social media platforms (Source: PWC, 2015) METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 3
WHERE DO WE COME FROM? We have the products let s find some customers, to whom we can sell them. METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 4
WHERE WE NEED TO GO! We have the products let s find some customers, to whom we can sell them. We have a customer base! What can we do for them? METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 5
ONCE AGAIN ALL TARGETS ACHIEVED Persistent major challenges Sluggish economic environment Geopolitical crisis Volatile emerging market currencies Nevertheless major achievements Continued positive LfL sales growth at METRO Cash & Carry and Media-Saturn Sales line transformation moving forward Implementation of new business model started Ongoing active portfolio management Higher sales, better earnings, stronger balance sheet LfL Sales EBIT* EPS Net Debt *adjusted for FX +1.5% 1,511 million 1.91 2,527 million METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 6
LFL SALES TREND OF METRO GROUP 1 CONTINUOUSLY POSITIVE ROLLING LFL-SALES DEVELOPMENT (12 MONTH) JANUARY 2012 UNTIL SEPTEMBER 2015 IN % TO PY 2,5 2,0 1,5 1,0 0,5 0,0-0,5-1,0-1,5-2,0-2,5 J F M A M 2012 1 w/o Kaufhof. J J A S O N D J F 2013 M A M J J A S O N D J F 2014 M A M J J A S O N D J F 2015 M A M J J A S METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 7
INNOVATION ACCELERATED - DIGITALISATION STARTED Digital HORECA Accelerator @ METRO Cash & Carry and Media-Saturn 360 degree approach @ Media-Saturn Further expansion in delivery and online Additional investments in new businesses Delivery Sales 2013/14 2.8 billion 2014/15 2020 3.1 billion Online Sales 2013/14 1.4 billion 2014/15 1.8 billion 2020 METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 8
SALE OF GALERIA KAUFHOF TO HUDSON S BAY COMPANY (HBC) FOR 2,825BN EUR (1) Successful closing of transaction on 30 September 2015 and timely payment of preliminary purchase price to METRO HBC as acquirer offered both an attractive valuation, solid financing and a convincing future concept for the c. 21,000 employees Financial implications (2) slightly above initial expectations EBIT from transaction: 841m Net profit from transaction: 797m Net cash-in: 1.74bn Net debt on balance sheet: -2.11bn Rating-relevant net debt: -2.96bn Transaction strengthens strategic and financial profile of METRO GROUP (1) Enterprise Value (2) All numbers as per 30 th September 2015 METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 9
SUSTAINABILITY: INDUSTRY GROUP LEADER METRO GROUP achievements Pursuit of sustainable business for our customers, employees, shareholders and the environment Award from EHI Retail Institute for traceability solution METRO GROUP presented for the 1st time at a SRI Conference Rewards Membership of FTSE4Good Europe and Global Indices reconfirmed Sector leader Consumer Staples and Index Leader MDAX at the CDP with a new record of 99 out of 100 points Again, listing in Dow Jones Sustainability Europe and World Indices: METRO GROUP became the Industry Group Leader in the Food & Staples Retailing category METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 10
NEW CLIMATE TARGET APPROVED METRO GROUP climate control goal 2012 (reduction of CO 2 -emissions* by 20% until 2020 vs 2011) almost reached Comprehensive energy saving programs in all sales lines Measurable reduction of refrigerant loss Reduction of paper usage and business travel Changes in store portfolio New METRO GROUP climate control goal: Reduction of CO 2 -bmissions* by 50% until 2030 vs 2011 in order to Further optimize energy and resource management Support political goal of keeping global warming below 2 degree Contribute to the UN s Sustainable Development Goals until 2030 Further improve assessment of external stakeholders *per square meter sales area METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 11
FY 2014/15: ONGOING CHALLENGES MANAGED Sluggish economic environment (global real GDP growth of 2.4%) Geopolitical crisis (Russian economy under pressure) Weak emerging market currencies weighing on results Sales: -1.0 bn EBIT: -117 mn Western Europe back on track (real GDP growth in Spain ~3% and Italy ~1%) Import restrictions in Russia well balanced by local sourcing amongst others Further improvement of financial profile Positive strong operational performance despite demanding environment METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 12
AGENDA 01 METRO GROUP Transformation I 02 Financial KPIs GJ 2014/15 03 Strategic Update 04 Outlook 2015/16 05 METRO GROUP Transformation II METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 13
FY 2014/15: ONCE AGAIN ALL FINANCIAL TARGETS ACHIEVED billlion Reported FY 2013/14 Guidance FY 2014/15 LfL sales growth +0.1% >0% +1.5% EBIT before special items (in million) 1,531 >1,531 1 1,511 Capex 1.0 ~1.5 1.4 Net debt 4.7 <3.2 2.5 Number of new store openings 68 ~50 58 1 Based on constant foreign exchange rates (1,531-117 (FX) = 1,414) Reported FY 2014/15 Strong base for future profitable growth METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 14
EBIT FY 2014/15: COMPARABLE EBIT IMPROVED BY ~ 100 MILLION +97 in million 454 1,531 -~117 800 1,511 ~1,414 1) ~114 ~154 1) 1,077 711 FY 2013/14 (Reported) Special items FY 2013/14 (Before Special Items) Negative FX Impact FY 2013/14 (Comparable Before Special Items) FY 2014/15 (Reported) Special Items FY 2014/15 (Before Special Items) METRO GROUP, General Meeting 2016 1) Real Estate Gains from Divestments 19 February 2016 METRO AG 2016 15
FY 2014/15: SALES AND EBIT BY DIVISION Sales Like-for-Like EBIT EBIT EBIT FY 2014/15 FY 2014/15 Change Change reported comparable reported vs FY 2013/14 million METRO Cash & Carry 29,690-2.7% 0.9% FY 2013/14 1,125 FY 2013/14 ~987 FY 2014/15 1,050 comparable +63 Media-Saturn 21,737 3.6% 3.1% 335 ~356 442 +86 Real 7,735-8.3% -0.8% 81 81 88 +7 Others 56 - - -10-10 -63-53 Consolidation - - - 0 0-5 -6 METRO GROUP 59,219-1.2% 1.5% 1,531 ~1,414 1,511 +97 9 th consecutive quarter with LfL growth; comparable EBIT noticeable above PY level 5th consecutive quarter with strong LfL growth driven by all regions; strong operational performance led to clear EBIT improvement LfL performance on previous year level due to the challenging overall environment; EBIT supported by new cooperation with Markant and ongoing tight cost control Others Impacted by lower rental income as well as additional rental and project costs METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 16
FY 2014/15: INCOME STATEMENT (EBIT TO EPS) million FY 2013/14 FY 2014/15 Change EBIT 1,531 1,511-20 Net financial result -471-444 +27 EBT 1,060 1,067 +7 Income Taxes -572-518 +54 Profit or loss for the period from discontinued operations after tax 185 139-46 Profit or loss for the period 673 688 +15 Non-controlling interests 73 63-10 EPS in 1.84 1.91 +0.07 Net financial result strongly improved mainly due to better interest result Tax rate of 48.6% in FY 2014/15 in line with expectations EPS before special items improved by 0.07 to 1.91 Proposal to increase dividend to 1.00 per ordinary share METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 17
FY 2014/15: NET DEBT STRONGLY IMPROVED in million 7,734-5bn 3,245 5,391 2,402 4,655 1,509 2,527 142 30.09.2012 31.12.2012 30.09.2013 31.12.2013 30.09.2014 31.12.2014 30.09.2015 31.12.2015 Net debt significantly reduced by more than 5 billion over the last three years Average net debt 2014/15 at ~ 3.4 billion METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 18
Q1 2015/16: HIGHLIGHTS LfL sales on prior year level despite very high comps; METRO Cash & Carry and Media-Saturn with LfL sales growth Strong Christmas business in Germany at METRO Cash & Carry and Media- Saturn Market share and position in many countries strengthened Delivery and online sales with ongoing strong performance Good EBIT development in local currency at METRO Cash & Carry and Real EBIT performance of Media-Saturn impacted by one-time pull-forward effects in Russia in PY, price investments and repositioning of Redcoon Initiatives to create customer value through digital services further intensified Net debt further reduced by 1.4 billion to all-time low of 0.1 billion Sale of METRO Cash & Carry Vietnam successfully closed with an EBIT gain of 427 million Like-for-Like Sales Development in % 2014/15 2015/16 2,3 2,7 1,3 0,1-0,4 Q1 Q2 Q3 Q4 Q1 EBIT in million 2014/15 2015/16 891 828 435 209-24 Q1 Q2 Q3 Q4 Q1 METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 19
AGENDA 01 METRO GROUP Transformation I 02 Financial KPIs GJ 2014/15 03 Strategic Update 04 Outlook 2015/16 05 METRO GROUP Transformation II METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 20
Strategy Update METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 21
METRO CASH & CARRY: HIGHLIGHTS FY 2014/15 LfL sales up by 0.9% with positive development in all quarters Western Europe with positive LfL growth in France, Italy, Spain and Portugal Eastern Europe with positive LfL growth in almost every country Asia with LfL growth in India and Japan LfL Food sales +2.1% emphasises superior distinguished expertise Delivery sales increased by 13.7% to 3.1 billion Comprehensive modernization of internal IT 22 new store openings, 24 store closures including closure of 5 stores in Denmark and 9 divestments in Greece Integration Classic Fine Foods well on track Closing of sale of METRO Cash & Carry Vietnam in Q1 15/16 Like-for-Like Sales Development in % 2013/14 2014/15 1,4 1,0 1,1 1,1 0,9 0,1 0,1 Q4 GJ Q1 Q2 Q3 Q4 GJ EBIT Development in million 2013/14 2014/15 1.125 1.050 261 481 37 262 269 Q4 GJ Q1 Q2 Q3 Q4 GJ Delivery Sales Share in % 2013/14 2014/15 10,0 9,1 10,9 11,8 8,6 10,1 10,6 Q4 GJ Q1 Q2 Q3 Q4 GJ METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 22
OUR GOAL IS METRO GROUP, page 23 General Meeting 2016 19 February 2016 METRO AG 2016 23
OUR GOAL IS TO CONTRIBUTE TO THE SUCCESS OF OUR CUSTOMERS! METRO GROUP, page 24 General Meeting 2016 19 February 2016 METRO AG 2016 24
METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 25
THE CORE OF OUR BRAND: CHAMPION FOR INDEPENDENT BUSINESS Key message: We help independent entrepreneurs to grow and win. Clear focus on target groups localized strategy per country Intensified effort to engage in communities Aim to continuously increase our relevance Strengthening of solution mind set, including own brands Intensive effort to further improve Employee Engagement. Our people are the most important success factor METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 26
NEW OPERATING MODEL AT MCC SINCE 1 JULY 2015 Improvement of efficiency and proximity to our business and employees Management of country business like independent companies Usage of synergies on request Maximum localization Intensified management through dedicated Operating Partners METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 27
ONE STEP FURTHER IN THE DEVELOPMENT OF OUR LEADERSHIP CULTURE CORRECT ENGAGED FROM TO METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 28
DIGITALISATION IS OPENING UP NEW OPPORTUNITIES FOR OUR CUSTOMERS. Digital Communication Online Reservation New Services Increased Efficiency Social Media Product Innovation Sustainability METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 29
IS IT A SIZABLE OPPORTUNITY? METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 30
TECHSTARS METRO ACCELERATOR TO IDENTIFY AND SUPPORT DIGITAL INNOVATIONS FOR OUR CUSTOMERS The first Hospitality & Food Tech Accelerator globally seeking the best digital innovations for hotels and restaurants Intensive bootcamp and experienced mentors 3 prestigious partners - techstars METRO ACCELERATOR with R/GA 11 companies chosen Techstars METRO ACCELERATOR with R/GA Berlin 2015/2016 METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 31
TECHSTARS METRO ACCELERATOR TO IDENTIFY AND SUPPORT DIGITAL INNOVATIONS FOR OUR CUSTOMERS The first Hospitality & Food Tech Accelerator globally seeking the best digital innovations for hotels and restaurants Intensive bootcamp and experienced mentors 3 prestigious partners - techstars METRO ACCELERATOR with R/GA 11 companies chosen Techstars METRO ACCELERATOR with R/GA Berlin 2015/2016 METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 32
TECHSTARS METRO ACCELERATOR Combining great ideas with strong business building, marketing and sector expertise METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 33
OUR AIM AT MCC: CAPTURE SIGNIFICANT ADDITIONAL POTENTIAL FSD Expansion & Remodeling Franchise Innovation TODAY FUTURE Transactional System Partner METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 34
STRATEGIC AMBITIONS Champion for Independent Business Strong differentiation through outstanding food competence Servicing of our customers through different channels Stronger localization / implementation of New Operating Model Usage and support of digitalization to better support our customers Establishment of sustainable solution-based business Ongoing review of cost structures Market leadership in clearly defined sectors through unique product assortment and strong focus on B2B solutions that make our customers more successful METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 35
ACQUISITION OF RUNGIS EXPRESS Acquisition of the German and international business of RUNGIS express, based in Meckenheim, as well as associated logistics and service activities of Cool Chain Group RUNGIS express is one of the leading providers of Food Service Distribution (FSD), direct delivery of premium groceries and delicatessen to c. 6,000 customers from the hotel, restaurant and caterer (HoReCa) industry The company generated 130m sales in 2014 and employs 600 people Signing of the purchase agreement on 12 th February 2016, closing subject to approval by merger control Acquisition provides METRO with access to the premium-fsd-market in Germany and forms an essential step for METRO Cash & Carry in becoming the leading Multi-Channel Food Service-provider in Germany METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 36
Strategy Update METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 37
MEDIA-SATURN: HIGHLIGHTS FY 2014/15 LfL sales up 3.1% with positive development in all quarters Continued strong growth in online sales: +20% to 1.8 billion (8% of total sales) Internet offering of more than 150,000 products at Media Markt and around 130,000 at Saturn Market share increased 70bps to 13.3% (highest ever); 11 out of 15 markets grew Recognition as distribution partner of choice further improved EBIT improvement in nearly all countries 36 new store openings, 15 store closures Integration of RTS started 350 2013/14 1,7-0,9 Q4 GJ Q1 Q2 Q3 Q4 2013/14 130 335 349 20 Q4 1 2013/14 1.430 Like-for-Like Sales Development in % 3,8 5,2 2014/15 0,2-60 133 Online Sales in million 2014/15 512 436 404 415 2,9 3,1 EBIT Development in million 2014/15 GJ Q1 Q2 Q3 Q4 GJ 442 GJ 1.766 Q4 GJ Q1 Q2 Q3 Q4 GJ 1 Bereinigt um Redcoon Dänemark und Frankreich METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 38
STRATEGISCHE AMBITIONEN Mission The partner, day-to-day companion and navigator for consumers in the fascinating yet sometimes confusing digital world Vision The leading provider of consumer electronics and corresponding services in Europe with a sustainable and profitable market position in selected countries Strategy Transition from pure high-volume, transactional and undifferentiated retail business into a target group and country-specific portfolio of brands, channels and formats based on a data-based understanding of our customers METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 39
ALL STRATEGIC BUILDING BLOCKS SHOW STRONG DEVELOPMENT LfL performance brick & mortar Return to growth for the first time since 2007 12 countries with increasing LfL brick and mortar sales in FY 2014/15 Online sales Online share reached 8% of total sales Current pick-up-ratio as high as 40%, e.g. in Germany Commissions and services Over 1 billion sales in commissions and services ~5% of total sales METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 40
STRATEGIC UPDATE I Ongoing portfolio optimisation 36 store openings, 15 store closures and 28 sales space reductions All expiring rental contracts are re-negotiated based on store performance Integration of Redcoon Local Media-Saturn organisation with full operative responsibility Redcoon with identical purchasing terms & conditions as Media-Saturn Goal is to maximise market share and profit in each market Electronic shelf labelling Roll out to all stores completed until the end of FY 2015/16 First feedback signals a significant improvement of staff efficiency in the stores METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 41
STRATEGIC UPDATE II RTS Majority shareholding in customer and repair service provider to expand service offering Services both in store and at home Saturn Connect New store format pilots with focus on city centres (Cologne, Trier) Hotspot for digital lifestyle Focus on mobile and innovative products as well as services and contracts Same day delivery Delivery of online orders within 3 hours Service in 170 German cities (80% coverage) METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 42
FOCUS OF THE ONGOING TRANSFORMATION Products & Services Combination of stationary and digital sales Innovations New Formats Higher Efficiency New business Modern Marketing METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 43
MEDIA-SATURN: TECH ACCELERATOR Access to innovation, talent & entrepreneurs - low risk investments for Media-Saturn Superb feedback from press and startup-community; Media-Saturn recognized as relevant digital investor Start-ups invest in Media-Saturn ecosystem, four companies with strong service focus First pilot cooperations in selected Meda-Saturn stores initiated, registration phase for second accelerator kicked off The IT helpdesk for home users: Remote support service for PC / laptop users (via hotline / shared screen) The family doctor for technology: Certified technicians provide IT services at home for all sorts of devices and IT problems First aid for smartphones: Online platform offering tutorials, spare-parts & local repair services for defective mobile phones All electronic products on one platform: Supports users to keep an overview of their CE products and fixed-term contracts; also offers access to product information and operating manuals and notifies about expiry of warranties/contracts METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 44
MEDIA-SATURN CORPORATE GOVERNANCE SOLIDIFIED Corporate Governance of Media-Saturn-Holding GmbH ( MSH ) finally resolved by Supreme Court Advisory board of MSH decides with simple majority, METRO in control Advisory board particularly decides on budget of Media-Saturn-subgroup, on essential operative and strategic measures of the management, such as company transactions of MSH, as well as appointment of members of the management boards of country and management entities METRO further has the right to unilaterally appoint one chief executive of MSH and has used this right through the appointment of Pieter Haas; METRO further has the right to appoint the deputy chairman. No member of the management board can be appointed without approval by METRO The minority shareholder and members of the advisory board dispatched by him have initiated or caused 17 judicial procedures since 2011 and have lost all 10 concluded procedures. METRO in control and managing Media-Saturn on a stable basis. The transformation of Media-Saturn can be continued successfully METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 45
STRATEGIC AMBITIONS Further improvement of attractiveness for customers Continuation and intensification of omni-channel implementation Extension of service offerings Lead industry innovation Strengthening of positioning as preferred partner for suppliers Usage of digitalization to intensify and accelerate transformation Further improvement of cost position Europe s leading consumer electronics retailer innovative, modern, service-oriented and price attractive METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 46
Strategy Update METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 47
REAL GERMANY: HIGHLIGHTS FY 2014/15 After good first half, LfL sales down 0.8% due to intensive competition and food price deflation 107 remodeled stores with positive contribution to sales development and customer frequency Online sales more than doubled to 47 million Streamlining of store portfolio: 14 non-profitable stores closed Shift of settlement to Markant and buying co-operation with PHD to strengthen buying power Supply chain centralization of logistics flow Exit of German retail collective agreement with target to negotiate competitive framework for personnel costs Like-for-Like Sales Development in % 2013/14 2014/15 0,2 0,9 1,1-0,9-1,6-0,8-3,7 Q4 GJ Q1 Q2 Q3 Q4 GJ Real EBIT Development in million 2013/14 2014/15 28 81 84 5 35 88-36 Q4 GJ Q1 Q2 Q3 Q4 GJ METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 48
STRATEGIC UPDATE CUSTOMER ORIENTED REAL OF TOMORROW Concept Increased localization of individual stores Continuous growth of Real online platform Preparation of food click-and-collect/delivery option for stores Extension of organic ranges such as permaculture Costs Continue supply chain efficiency effort Optimized energy consumption Achieve competitive labour cost levels to allow for more service Remodelings Modernization effort to be continued Big Bang 2.0 pilot in preparation Further innovations to be piloted Real estate Consideration of selective acquisition of attractive stores METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 49
STRATEGIC UPDATE VISION AND MISSION There is a demand space for an inspirational food lover's concept Big shop is real s core domain Need to get the basis right to facilitate efficient big shop Hybrid store concept possible model to win new customers without alienating current customers METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 50
STRATEGIC AMBITIONS Develop Real into a truly differentiated shopping experience for the big weekly shop based on Strong and unique food offer Emotionalized and modernized store experience More service and support in selected departments More focused non-food offer Multichannel integration Big Bang 2.0 pilot based on learnings plus new considerations to be implemented in Q2/Q3 2015/16 Unique choice in food retail complemented by a one-of-a-kind fresh competence and innovative solutions. METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 51
AGENDA 01 METRO GROUP Transformation I 02 Financial KPIs GJ 2014/15 03 Strategic Update 04 Outlook 2015/16 05 METRO GROUP Transformation II METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 52
OUTLOOK 2015/16: FINANCIAL TARGETS Reported Guidance FY 2014/15 FY 2015/16 LfL sales growth +1.5% >0% Mio. billlion EBIT before special items 1,511 >1,511 1 Capex 1,411 ~2,000 2 Number of new store openings 58 ~70 1 Based on constant foreign exchange rates 2 75% going concern and 25% innovation and M&A Net debt without further acquisitions stable on the level of 2.5 billion METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 53
SUSTAINABLE VALUE CREATION Portfolio in good shape Clear defined customer focus for all sales lines Continued strict cost focus Strong balance sheet allows us to Invest into focused expansion Modernise store network Let shareholders participate in our success (higher payout ratio) LfL Sales Growth 2014/15 Midterm (~2020) 1.5% >2% EBIT Margin 2.6% >3.5% Capex 1.4 bn ~ 2 bn Rating BBB- BBB Well on track to achieve our midterm financial goals METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 54
AGENDA 01 METRO GROUP Transformation I 02 Financial KPIs GJ 2014/15 03 Strategic Update 04 Outlook 2015/16 05 METRO GROUP Transformation II METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 55
TRANSFORMATION OF METRO GROUP Customer orientation BUSINESS INNOVATION STRATEGY ACQUISITIONS START-UP INV. / ACCELERATORS Modernization Focus Economic strengthening MODERNISATION OF OUR BUSINESS MODEL FOCUS PORTFOLIO OPTIMISATION DEBT REDUCTION SUSTAINABILITY CORPORATE CULTURE, MANAGEMENT CULTURE, EMPLOYEE ENGAGEMENT Substantial potential Further transformation needs CUSTOMER-CENTRIC STRATEGIES 2012 2013 2014 2012 2013 2014 2015 2015 2016 Geopolitical framework METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 56
TRANSFORMATION OF METRO GROUP BUSINESS INNOVATION STRATEGY ACQUISITIONS START-UP INV. / ACCELERATORS MODERNISATION OF OUR BUSINESS MODEL FOCUS PORTFOLIO OPTIMISATION DEBT REDUCTION SUSTAINABILITY CORPORATE CULTURE, MANAGEMENT CULTURE, EMPLOYEE ENGAGEMENT CUSTOMER-CENTRIC STRATEGIES Accelerated growth of modernized CORE BUSINESS 2012 2013 2014 2012 2013 2014 2015 2015 2016 2020 METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 57
TRANSFORMATION OF METRO GROUP ACQUISITIONS START-UP INV. / ACCELERATORS New growth opportunities BUSINESS INNOVATION STRATEGY MODERNISATION OF OUR BUSINESS MODEL FOCUS PORTFOLIO OPTIMISATION DEBT REDUCTION SUSTAINABILITY CORPORATE CULTURE, MANAGEMENT CULTURE, EMPLOYEE ENGAGEMENT CUSTOMER-CENTRIC STRATEGIES Accelerated growth of modernized CORE BUSINESS 2012 2013 2014 2015 2016 2020 METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 58
OUR DECISIVE SUCCESS FACTOR. METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 59
METRO GROUP, General Meeting 2016 19 February 2016 METRO AG 2016 60
GENERAL MEETING 19 February 2016