2014/15 RESULTS PRESENTATION 10 February 2015
DISCLAIMER AND NOTES 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 expectations and assumptions at the time of publication of this presentation and 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 GROUP 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 behaviour of other market participants, investments in innovative sales formats, expansion in online and multichannel sales activities, integration of acquired businesses and achievement of anticipated cost savings and productivity gains, and the actions of government regulators. Readers are cautioned not to place too much reliance on these forward-looking statements. See also Risk and Opportunity Report on pages 145-167 of the METRO GROUP Annual Report 2013/14 for risks as of the date of such Annual Report. METRO GROUP 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. It is not intended as an offer for sale, or as a solicitation of an offer to purchase, any securities in any jurisdiction. This presentation may not be reproduced, distributed or published without prior written consent of METRO AG. All numbers are before special items, unless otherwise stated. The consolidated financial statements have been prepared in euros. All amounts are stated in million euros ( million) unless otherwise indicated. Amounts below 0.5 million are rounded and reported as 0. Since 2012, only the amounts in the income statement, the reconciliation from profit or loss for the period to total comprehensive income, the balance sheet, the statement of changes in equity and the cash flow statement were rounded to produce the respective totals. In all other tables, the individual amounts and the totals were rounded separately. This may entail rounding differences. 10 February 2015 METRO AG 2015 1
2014/15 HIGHLIGHTS Significant LfL growth of 2.1% driven by Media-Saturn and METRO Cash & Carry Best LfL growth in Christmas quarter for many years All divisions with LfL growth in December Market share and position in many countries strengthened Successful transformation progress continued: Own brand share at 10.3% of sales Delivery sales: 0.7 billion (+10.8%) Online sales: 0.6 billion (+31%) EBIT above prior year s level if FX adjusted Net debt further reduced by 0.9 billion to 1.5 billion Sale of MAKRO Cash & Carry Greece successfully closed -0.2-2.2 2010/11 1,073 Like-for-Like Sales Development in % 2013/14 2014/15 1.7 2.1 0.7-1.8 Q2-1.8 2011/12 Q3 Like-for-Like Sales Christmas Quarter in % -1.4 2012/13 Q4 EBIT in million 276 418-0.2 2013/14 2.1 2014/15 2013/14 2014/15 1,024-40 Q2 Q3 Q4 10 February 2015 METRO AG 2015 2
APPRECIATION OF EBIT 2014/15 (BEFORE SPECIAL ITEMS) in million 1,073 ~60 ~1,013 1,024 2013/14 Negative FX Impact 2013/14 (Comparable) 2014/15 10 February 2015 METRO AG 2015 3
2014/15: SALES AND EBIT BY DIVISION Sales Like-for-Like EBIT EBIT EBIT 2014/15 2014/15 Change Change reported comparable reported vs 2013/14 million 2013/14 2013/14 2014/15 comparable METRO Cash & Carry 8,197-3.6% 1.4% 540 ~480 481 1 Media-Saturn 6,875 4.1% 3.8% 289 289 349 +60 Real 2,231-14.4% 0.9% 98 98 84-13 Galeria Kaufhof 993-1.0% -1.4% 159 159 139-20 Others/Consolidation 15 - - -13-13 -30-17 METRO GROUP 18,311-2.2% 2.1% 1,073 ~1,013 1,024 +11 6 th consecutive quarter with LfL growth; EBIT on PY level if adjusted for FX Strongest LfL growth since 2007; significant EBIT development driven by top-line LfL growth driven by strong Christmas business; EBIT development influenced by targeted marketing investments and missing EBIT contribution from Real Eastern Europe Mild weather in October and November dampened LfL sales and led to higher price investments than usual 10 February 2015 METRO AG 2015 4
2014/15 INCOME STATEMENT (EBIT TO EPS) million 2013/14 2014/15 Change EBIT 1,073 1,024-49 Net financial result -141-115 +26 EBT 932 909-23 Income Taxes -429-408 +21 Profit or loss for the period 503 501-2 Non-controlling interests 63 56-7 EPS in 1.35 1.36 +0.01 Net financial result improved due to lower net debt and interest level Tax rate of 44.9% in line with FY guidance ( 2013/14: 46.1%) 10 February 2015 METRO AG 2015 5
2014/15: OTHER KEY FINANCIALS million 2013/14 2014/15 Change Net debt (as at 31/12) 2,402 1,509-893 Net working capital (as at 31/12) 4,603 4,551-52 Change in net working capital (cash flow impact) 2,288 2,357 +69 Cash flow from operating activities 3,569 1 3,616 +47 Capex 273 176-97 Number of new store openings 36 23-13 1 Separate disclosure of cash and cash equivalents from disposal groups Net debt further reduced by 0.9 billion to 1.5 billion Net working capital and cash flow from operating activities almost on PY level due to the stable business development Capex of 176 million mainly invested in expansion and remodellings 10 February 2015 METRO AG 2015 6
METRO CASH & CARRY: HIGHLIGHTS 2014/15 Solid LfL growth driven by Eastern Europe and Asia Signs of stabilization in Western Europe; most countries with positive LfL growth Germany slightly down due to the deflationary sales price development Delivery sales increased by 10.8% (around 9% of total sales) Own brand sales share 16% 9 new store openings Sale of METRO Cash & Carry Vietnam on track All stores in Denmark closed; sale of MAKRO Cash & Carry Greece successfully completed Like-for-Like Sales Development in % 2013/14 2014/15 2.0 0.9 0.8 1.4 0.1 Q2 Q3 Q4 Delivery Sales Share in % 2013/14 2014/15 7.9 9.4 9.4 10.0 8.6 Q2 Q3 Q4 10 February 2015 METRO AG 2015 7
STRATEGIC UPDATE Implementation of new pricing strategy Price-performance ratio as key factor for customer loyalty Analysis and improvement of price perception vs price reality Transparency and stable prices to increase sales volume and profit Continuation of successful marketing campaigns Project 51: METRO United Special marketing offers Sales promotion activities You & METRO Bocuse d Or 10 February 2015 METRO AG 2015 8
MEDIA-SATURN: HIGHLIGHTS 2014/15 Strong LfL growth driven by all regions Spain, Russia, Hungary and Poland with double digit LfL growth Further dynamic growth in online sales (+28.7%), 7.4% of total sales Internet product offering increased to around 90,000 SKUs at www.mediamarkt.de and around 80,000 SKUs at www.saturn.de 13 new store openings -1.0 403 Like-for-Like Sales Development in % 2013/14 2014/15 1.7 3.8-0.2-3.7 Q2 Q3 Q4 Online Sales in million 2013/14 2014/15 363 512 328 353 Q2 Q3 Q4 10 February 2015 METRO AG 2015 9
STRATEGIC UPDATE New store concept Ingolstadt New ways of combining the on- and off-line activities Exciting shopping experience on 3.400 sqm Larger product range and topic islands Novelties (Drive-in, charging stations for smart phones and electric cars, a gigantic interactive video screen combination, interactive tariff advisor) Innovation First Saturn store introduces 24-hour pickup station Launch of online stores on ebay (Media Markt listing over 52,000 electronic products and Saturn over 41,000 articles) 10 February 2015 METRO AG 2015 10
REAL GERMANY: HIGHLIGHTS 2014/15 3rd consecutive quarter of LfL sales growth Strong Christmas business driven by dry food, sweets and beverages 50 remodelled stores continued to outperform; roll-out to another 32 stores in March Own brand sales share in Germany 15.2% Around 50 stores will be switched to LED lighting to improve energy costs Cooperation with Emmas Enkel - a new food retail format Like-for-Like Sales Development in Germany in % 2013/14 2014/15 5.1 0.2 0.9-2.1-6.6 Q2 Q3 Q4 10 February 2015 METRO AG 2015 11
GALERIA KAUFHOF: HIGHLIGHTS 2014/15 Market share gains in textile despite LfL decline Mild weather prevented a better sales development Webshop with continued strong growth of 38.8% New store opening in Hasselt, Belgium Launch of new online shop in Belgium (www.inno.be) Like-for-Like Sales Development in % 2013/14 2014/15 2.2 0.6 1.2-1.9-1.4 Q2 Q3 Q4 Textile Market change vs py in % -0.6-0.4-6.3 2013 2013/14 2014/15 Delta Galeria Kaufhof vs Textile Market change vs. py in % 3.1 1.2 0.8 2013 2013/14 2014/15 10 February 2015 METRO AG 2015 12
THE CORE OF OUR STRATEGY 10 February 2015 METRO AG 2015 13
TECHSTARS A PIONEER OF INNOVATION Techstars is a mentorship-driven startup accelerator founded by David Cohen, Brad Feld, David Brown, and Jared Polis. Techstars holds 13 week programs for startups in 13 cities worldwide. Fewer than 1% of the companies that apply to Techstars are accepted. Of the 500+ companies that have completed its program, 89% are active or have been acquired. Techstars mentors include Foursquare CEO Dennis Crowley, tumblr CEO David Karp, HubSpot co-founder and CTO Dharmesh Shah, and Fred Wilson of Union Square Ventures 10 February 2015 METRO AG 2015 14
FAST FORWARD WITH THE TECHSTARS METRO ACCELERATOR Seeking the best digital innovations for hotels and restaurants. Intensive start-up-bootcamp Broad network of experienced mentors 3 prestigious partners 10 companies to be chosen techstars METRO ACCELERATOR with R/GA Berlin 2015/2016 10 February 2015 METRO AG 2015 15
INNOVATION AND M&A ARE A CRUCIAL INGREDIENT FOR THE ENHANCEMENT OF OUR PORTOLIO GROUP STRATEGY BUSINESS MODEL PORTFOLIO COUNTRY PORTFOLIO STRATEGIC INITIATIVES 10 February 2015 METRO AG 2015 16
EVOLUTION AND REVOLUTION: UTILIZING OUR STRENGTH Three decisive success factors for scaling new business models Founding Growing 100 million customers p.a. 80 million customer cards (METRO Card & Payback) 1.6 billion store visits, 900 million online visits Customer Access 2,200 stores with 13 million sqm sales floor 30 countries and > 60 websites and apps > 2 billion direct marketing contacts 5,500 sales force representatives Marketing & Selling Power ~ 50 billion purchasing volume 100% of the important suppliers in our categories with global reach Sourcing 10 February 2015 METRO AG 2015 17
OUTLOOK 2014/15: FINANCIAL TARGETS billlion Reported FY 2013/14 Guidance FY 2014/15 Sales growth 1.2 +1.3% >0% LFL sales growth +0.1% >0% EBIT before special items 1.727 >1.727 2 Capex 1.2 <1.7 Net debt 4.7 <4.7 Number of new store openings 68 ~50 1 Adjusted for portfolio changes 2 Based on constant foreign exchange rates 10 February 2015 METRO AG 2015 18
Q&A Olaf Koch CEO Mark Frese CFO 10 February 2015 METRO AG 2015 19
CONTACT Investor Relations Metro-Straße 1 40235 Duesseldorf Germany Tel.: +49 (0)211 6886-1051 Fax: +49 (0)211 6886-3759 Email: Internet: investorrelations@metro.de www.metrogroup.de 10 February 2015 METRO AG 2015 20
BACK-UP
SPECIAL ITEMS In 2014/15 mainly Real for restructuring measures 10 February 2015 METRO AG 2015 22
STORES BY DIVISION AND COUNTRY METRO Cash & Carry Media- Saturn Real Galeria Kaufhof METRO GROUP 31.12.14 31.12.14 31.12.14 31.12.14 31.12.14 Germany 107 +1 416-5 302-2 120-6 945 Austria 12 47 59 Belgium 15 +1 24 +1 16 +2 55 Denmark -5-5 France 93 93 Italy 49 117 166 Luxemburg 2 2 Netherlands 17 +3 48 +3 65 Portugal 10 9 19 Spain 37 +2 74 +2 111 Sweden 27 27 Switzerland 25 25 Western Europe (excl. Germany) -5 233 +6 373 +1 16 +2 622 Bulgaria -1 13-1 13 Croatia 7 7 Czech Republic 13 13 Greece 9 10 19 Hungary 13 21 34 Kazakhstan 8 8 Moldova 3 3 Poland 41 +1 72 +1 113 Romania -1 31-1 31 Russia +7 80 +5 68 +12 148 Serbia 10 10 Slovakia 6 6 Turkey 28 39 67 Ukraine 33 33 Eastern Europe +5 295 +6 210 +11 505 China +2 80 +2 80 India 16 16 Japan 9 9 Pakistan 9 9 Vietnam 19 19 Asia +2 133 +2 133 Total +2 768 +13 999-5 302-1 136 +9 2,209* * including 4 stores in Others 10 February 2015 METRO AG 2015 23