The Power of the Market Energy procurement by METRO Group in international markets - Requirements for the Polish energy market Warsaw, 30 September 2009 Olaf Schulze Member of the Management Board MEM Metro Group Energy Production & Management
Contents The METRO Group METRO Group Energy Management Types of involvement of MEM in energy buying for METRO Group METRO Group Energy Management System MEMS Sustainability strategy of the METRO Group Examples for special technical and energy management projects 1
METRO Group: the group International presence Some 2.100 locations in 32 countries Metro/Makro Cash & Carry 660 Real 437 Media Markt and Saturn 768 Galeria Kaufhof 141 Status: March 31, 2009 Germany Metro C&C 126 Real 343 Media M./Saturn 367 Kaufhof 126 Others 190 Austria Metro C&C 12 Media M./Saturn 33 Others 2 Belgium Makro C&C 11 Media M./Saturn 15 Kaufhof 15 Bulgaria Metro C&C 11 China Others 192 Metro C&C 38 Croatia Metro C&C 6 Czech Republik Makro C&C 13 Denmark Metro C&C 5 France Metro C&C 91 Media M./Saturn 29 Greece Makro C&C 9 Media M./Saturn 9 Hungary Metro C&C 13 Media M./Saturn 22 India Metro C&C 5 Italy Metro C&C 48 Media M./Saturn 93 Japan Metro C&C 4 Luxembourg Media M./Saturn 1 Moldova Metro C&C 3 Morocco Makro C&C 8 Netherlands Metro C&C 17 Media M./Saturn 30 Pakistan Metro C&C 5 Poland Makro C&C 29 Real 53 Media M./Saturn 50 Portugal Makro C&C 11 Media M./Saturn 9 Romania Metro C&C 24 Real 20 Russia Metro C&C 48 Real 12 Media M./Saturn 14 Serbia Metro C&C 5 Slovakia Metro C&C 5 Spain Makro C&C 34 Media M./Saturn 57 Sweden Media M./Saturn 14 Switzerland Media M./Saturn 18 Turkey Metro C&C 13 Real 11 Media M./Saturn 8 Ukraine Metro C&C 23 United Kingdom Makro C&C 33 Vietnam Metro C&C 8 2
METRO Group: the group Operational strengths The sales divisions Metro/Makro Cash & Carry is the METRO Group s biggest and most internationally oriented sales division, with operations in 29 countries. Under the umbrella of Real SB-Warenhaus GmbH, the company manages around 437 hypermarkets with great price-performance ratio in Germany, Poland, Romania, Russia and Turkey. Media Markt and Saturn are dynamic growth driver of METRO Group in 16 European countries and rank among Europe s leading consumer electronics retailers. Galeria Kaufhof is system and concept leader in Germany s department store segment; it is also market leader in Belgium. 3
METRO Group: the group Group structure METRO AG Metro Cash & Carry Makro Cash & Carry Real Media Markt and Saturn Galeria Kaufhof METRO Group Asset Management Self-service wholesale Hypermarkets Consumer electronics stores Department stores Real estate management 4
METRO Group Asset Management: the company METRO Group real estate The company METRO Group Asset Management ranks among the largest retail property management companies in Europe. Manages over 70 center locations in Germany, Poland and Turkey Supports more than 700 objects European-wide Responsible for the active management of METRO Groups retail property portfolio in 32 countries in Europe and Asia Offers infrastructural services internationally to 1,700 locations Management locations are in Düsseldorf, Saarbrücken, Böblingen, Istanbul, Warsaw and Moscow 5
METRO Group energy management The energy corporations of METRO Group Asset Management Provision of energy management and services inside of METRO Group Germany Purchasing of energy in the form of electricity, gas, oil, district heat Production of refrigeration Provision of energy management and services inside of METRO Group Germany Delivery of energy Supply of illuminated, ventilated, refrigerated and heated areas 6
METRO Group energy management Group strategy regarding energy Continuous optimization of our energy and energy price risk management Reduction of energy consumption Collection of factual energy consumption rates of retailing property by means of counters and measurements Evaluation of measurement results and detection of cost saving potentials Annual energy consumption of METRO Group in 2008: 436 kwh/m² sales area (electricity, gas, heating oil, district heating) Goal CO 2 : Reduction from 406 kg/m² in 2006 by 15% until 2015 7
Types of involvement of MEM in energy buying for METRO Group Types of involvement of MEM in energy buying for the METRO Group Type 1 Handling of own electricity and other energy positions and contracts e.g. Poland, Germany Type 2 Tenderings for energy under the patronage of MEM e.g. Belgium, Austria Type 3 Consulting of METRO country units by MEM e.g. UK, Hungary, Bulgaria, Italy Type 4 Special cases country specific MEM/MAM activities e.g. Spain, France, Romania 8
Types of involvement of MEM in energy buying for METRO Group Type 1 Handling of own electricity and other energy positions and contracts Electricity Natural Gas Heating Oil District Heating Specials Production by photovoltaiks or emergency plants 9
Types of involvement of MEM in energy buying for METRO Group Energy data Germany (Structured) electricity procurement since 2006 2006 ca. 2.020 GWh 2007 ca. 2.150 GWh 2008 ca. 2.114 GWh 2009 ca. 1.900 GWh 2010 ca. 1.850 GWh ca. 1.100 Stores/Sites Gas, district heating, heating oil procurement since 01-07-07 MEM 2008 ca. 580 GWh ca. 700 Stores/Sites 10
Types of involvement of MEM in energy buying for METRO Group 2009 Strategy of multiple suppliers n-1 Supplier 1 1.300 GWh Structured electricity procurement (integrated PM) Supplier 2 150 GWh Supplier 3 misc. local suppliers Supplier 4 35 GWh Supplier 5-n own portfolio management ca. 400 GWh 11
Types of involvement of MEM in energy buying for METRO Group Energy data Poland electricity procurement since 2009 2009 ca. 200 GWh 2010 ca. 400 GWh ca. 100 stores/sites MEM Poland will start its own electricity portfolio management in the liberalized market in 2010 12
13 Types of involvement of MEM in energy buying for METRO Group 135,00 Stand: 22.09.2009 130,00 125,00 120,00 115,00 110,00 105,00 Peak Cal 12 Peak Cal 11 Peak Cal 10 125,00 115,00 105,00 100,00 95,00 90,00 85,00 80,00 75,00 95,00 85,00 75,00 70,00 65,00 60,00 55,00 50,00 45,00 02.01.2007 02.02.2007 05.03.2007 05.04.2007 06.05.2007 06.06.2007 07.07.2007 07.08.2007 07.09.2007 08.10.2007 08.11.2007 09.12.2007 09.01.2008 09.02.2008 11.03.2008 11.04.2008 12.05.2008 12.06.2008 13.07.2008 13.08.2008 13.09.2008 14.10.2008 14.11.2008 15.12.2008 15.01.2009 15.02.2009 18.03.2009 18.04.2009 19.05.2009 19.06.2009 20.07.2009 20.08.2009 20.09.2009 21.10.2009 21.11.2009 22.12.2009 Base in /MWh Peak in /MWh 65,00 Base Cal 12 Base Cal 11 Base Cal 10 55,00 - Angaben ohne Gew ähr - 45,00 Datum Quelle: w w w.eex.de In order to reduce energy price risks, we need: Transparent market information A liquid market
METRO Group Energy Management System MEMS METRO Group energy management system MEMS Recording and analysis of energy consumption and determination of potential savings for retail properties METRO Group energy management system Systematization Benchmark (key facility figures etc.) Analysis Energy contracts (electricity, gas etc.) Energy consumption (invoices, meter structure) Energy consumer (heating, ventilation etc.) 14
METRO Group Energy Management System MEMS Web display (1) 15
METRO Group Energy Management System MEMS Web display (2) 16
Example: Special technical project Low energy real estate Energy savings per year: 798,000 kwh electricity 1,768,000 kwh gas CO 2 savings per year: 351 t electricity 488 t gas Walzmühle shopping center, Ludwigshafen Energy Efficiency Award 2007 From Deutschen Energie Agentur dena (3rd place) 17
Projektbeispiel Example: Special technical project Twofold photovoltaic roof Parallel PV-laminate and polycrystalline solar cells 5,000 sqm surface Pilot project with Fraunhofer Institut Metro Cash & Carry, Düsseldorf CO 2 savings per year 111 t 18
Example: Special technical project Energy optimisation in existing properties Sustainable architecture Life-cycle view of construction ecology Using energy reduction solutions from construction physics Lowering primary energy consumption Setting off CO 2 emissions Daylight autonomy Use of artificial light with the most up to date lighting technology Optimised air conditioning and cooling appliances Facility management by means of RFID 19
Projektbeispiel Example: Energy Management Geothermal plant Energy savings 1.3 million kilowatt-hours/year Exchanger field performances Heating 1,227 kilowatt Cooling 1,500 kilowatt CO 2 savings per year: 350 t Shopping Square Meydan, Istanbul-Ümraniye 20
Example: Energy Management Solar Chilling Generation of solar energy to operate cold storage Convertible roof Recreation areas Shopping Center Merter, Istanbul-Merter Energy savings per year: 308.880 kwh CO 2 savings per year: 313 t 21
Contact METRO Group Energy Production & Management Olaf Schulze Member of the Management Board Adress: Otto-Lilienthal-Straße 24, 71034 Böblingen Tel.: +49 (7031) 436-2200 +49 (151) 15111 870 E-mail: olaf.schulze@metro-mem.de Internet: www.metro-mam.com 22
METRO Group: the group Backup 23
METRO Group: the group Made for success METRO Group at a glance International, high-performing retailing company Successful DAX-30 enterprise, turnover of 68 bn in 2008 About 2,100 locations in 32 countries Approx. 300,000 employees from 150 nations Operational strengths of the four sales divisions Metro Cash & Carry: self-service wholesale Real: hypermarkets Media Markt and Saturn: consumer electronics stores Galeria Kaufhof: department stores Active real estate management with independent profit centre Focused on profitable growth as well as sustainable and consistent value enhancement 24