LEADERSHIP FOR GROWTH GOSH, April 2016 METRO AG 2016
MADE FOR SUCCESS: METRO GROUP AT A GLANCE. One of the world s leading retail and wholesale companies Successful stock-listed company Presence in over 2,000 locations in 29 countries More than 220,000 employees from 171 nations Three sales lines with leading positions METRO Cash & Carry: cash-and-carry wholesale Media-Saturn: consumer electronics stores Real: hypermarkets All sales lines are closely linked to online shops Geared towards sustainable positive earnings development April 2016 METRO AG 2016 1
SALES AND EARNINGS DEVELOPMENTS 2014/15. 2013/14 mn. 2014/15 mn. in Change in % compared with the previous year s period in local currencies Sales METRO GROUP 59,937 59,219 1.2 0.5 Germany 22,558 22,490 0.3 0.3 international 37,379 36,728 1.7 1.0 Western Europe 1 18,902 19,090 1.0 0.7 Eastern Europe 14,755 13,318 9.7 1.7 Asia/Africa 3,722 4,319 16.1 0.5 EBIT 2,3 METRO GROUP 1,531 1,511 1.3 Status: 30 September 2015, 1 Excluding Germany, 2 Before special items, 3 Adjustment of previous year April 2016 METRO AG 2016 2
EMPLOYEES AND LOCATIONS. Employees 1 Locations 2 in 1,000 m² Selling space METRO GROUP 3 223,462 2,057 10,563 Germany 83,949 819 4,341 Western Europe 4 52,372 605 2,641 Eastern Europe 64,333 510 2,771 Asia/Africa 22,803 119 809 Status: 30 September 2015 1 By headcount as of closing date 2 As of the closing date 31 December 2015 3 Including five employees from Boston Trade Office, USA 4 Excluding Germany April 2016 METRO AG 2016 3
METRO GROUP 1 : 2,057 LOCATIONS IN 29 COUNTRIES. METRO Cash & Carry 750 locations; Media-Saturn 1,010 locations; Real 293 locations. Austria METRO C&C 2 12 Media-Saturn 48 Belgium MAKRO C&C 15 Media-Saturn 23 Bulgaria METRO C&C 11 China METRO C&C 82 Croatia METRO C&C 8 Czech Republic MAKRO C&C 13 France METRO C&C 94 Germany METRO C&C 107 Media-Saturn 419 Real 293 Greece Media-Saturn 10 Hungary METRO C&C 13 Media-Saturn 22 India Italy METRO C&C 19 METRO C&C 48 Media-Saturn 110 Japan METRO C&C 9 Kazakhstan METRO C&C 7 Luxembourg Media-Saturn 2 Moldova METRO C&C 3 Netherlands METRO C&C 17 Media-Saturn 49 Pakistan METRO C&C 9 Poland MAKRO C&C 41 Media-Saturn 80 Portugal MAKRO C&C 10 Media-Saturn 9 Romania METRO C&C 31 Russia METRO C&C 87 Media-Saturn 65 Serbia METRO C&C 10 Slovakia METRO C&C 6 Spain MAKRO C&C 37 Media-Saturn 77 Sweden Media-Saturn 27 Switzerland Media-Saturn 27 Turkey METRO C&C 29 Media-Saturn 42 Ukraine METRO C&C 32 Status: 31 December 2015 1 Including four locations in the segment Other 2 The METRO Cash & Carry segment also includes the business of the Classic Fine Foods group in China (including Hong Kong), France, Indonesia, Japan, Korea, Macau, Malaysia, the Philippines, Singapore, Thailand, the United Arab Emirates, the United Kingdom and Vietnam. The locations and countries of the Classic Fine Foods group are not shown in the table as they relate to distribution centres and warehouses whereas this table only covers sales locations. April 2016 METRO AG 2016 4
GROUP STRUCTURE PROFILES AT A GLANCE. METRO AG A leading international player in cash-and-carry wholesale trade Europe s No. 1 consumer electronics retailer; one of the largest discount providers in German-language online sites One of the leading operators of hypermarkets in Germany Status: 1 October 2015 Companies April 2016 METRO AG 2016 5
STRATEGIC FOCAL POINTS OF METRO GROUP. April 2016 METRO AG 2016 6
CORPORATE RESPONSIBILITY. In our core business, we identify spheres of action that are relevant from an economic perspective and are also significant for the environment and society as a whole: Employees Provide an attractive, fair and safe working environment Appreciate the individuality of employees, foster diversity and strengthen personal responsibility Procurement Production Processing Corporate and product-related buying policy for sustainable acquisition Consideration of specific sustainability criteria and monitoring of defined standards by an independent third party Proximity to suppliers through concentrated and regional buying and acquisition Transport Warehousing Stores Procure resources and use them efficiently in own operations Sustainable facility management Reduce greenhouse gas emissions by 20 per cent until 2020 compared to 2011 April 2016 METRO AG 2016 7
CORPORATE RESPONSIBILITY. Customer High transparency along the value chain through the traceability of goods Provide high-quality products with social and environmental credentials and offer sustainable alternatives Provide information to customers and interact with them to support and encourage responsible consumption Waste Disposal Avoid waste, reuse or recycle resources and advise customers on the best way to dispose Social Commitment Foster intercultural dialogue, lend support to our locations and their local communities, and provide assistance directly to those in need April 2016 METRO AG 2016 8
OUR SUSTAINABILITY VISION: METRO GROUP. WE OFFER QUALITY OF LIFE. For our customers by providing them with safe quality products and services where they live, around the world, constantly improving our processes. And with products that are made, processed and recycled in a socially responsible, environmentally sound, resource-conserving manner. This lets us secure our future. For our employees by at all times respecting, protecting and helping them grow professionally, and by building trusted relationships with them. This lets us create an attractive working environment. For all who work for us by doing business fairly and responsibly and providing good living and working conditions. This lets us demonstrate responsibility in the supply chain. For society by working on solutions to global challenges in a relationship of mutual trust with our stakeholders. This is how we contribute to sustainable development. For the environment by protecting the environment, conserving natural resources and minimising our effect on the climate. This lets us help ensure a sound footing for the retailing of tomorrow. April 2016 METRO AG 2016 9
Basics April 2016 METRO AG 2016 10
Basis of relation employee METRO GROUP Demand: Healthy combination of the needs of a profit driven company with those of a responsible employer Challenge: Ongoing restructuring process Question: How to create a new spirit in the management and in the personnel Tool: Realization of our intentions and demands by combining business principles with the possibilities offered by the Leadership of Growth Workshop developed by Oxford Leadership Academy April 2016 METRO AG 2016 11
OXFORD LEADERSHIP ACADEMY (OLA). Leadership consultancy specialized in values-driven leadership development, strategy execution and culture change Improvement of the social responsibility and ethical commitments of business leaders. Credo: We believe business leaders must make choices and decisions that reflect a sense of responsibility for the whole, not only their own narrow interests [ ] Core values: Principled pragmatism Collaborative partnership Courageous integrity Spirit of service April 2016 METRO AG 2016 12
MCC Business Principles from the company to the individual Growth needs values. People as well as business. Helping people to grow themselves will help to grow business Leadership for Growth April 2016 METRO AG 2016 13
OLA: LEADERSHIP FOR GROWTH FACTS & EXPECTATIONS. Leadership model, leaders serve as role model Reflection of reciprocal relation between organization, team and individual searching for alignment between them by development of a an adult-to-adult relation (team, company, private) Identify final barriers holding people back to achieve what they could and would achieve Translate this approach to business life by developing strategic targets for optimizing the engagement and accountability Transfer strategic targets to an implementation plan resulting in programs, projects and/or products April 2016 METRO AG 2016 14
LEADING FROM THE INSIDE-OUT TO ALIGN STRATEGY AND CULTURE LEVEL COMMUNITY BUILDING A COMMUNITY Create a Metro spirit by connecting, collaborating LEVEL ORGANISATION LEVEL TEAM LEVEL INDIVIDUAL LEADING THE ORGANISATIONAL CULTURE LEADING RELATIONSHIPS & TEAMS LEADING THE SELF From Adult-Child to Adult- Adult engagement The conversation IS the relationship Leadership is Personal It s all about Relationships April 2016 METRO AG 2016 15
FRAMEWORK OF THE LEADERSHIP FOR GROWTH WORKSHOP Oxford Leadership Academy Step 1: Facts Establishing context & case for change incl. Life lines, S-curves, Iceberg model, Engagement results Step 2: Insights Reviewing the business Life Line - What must we build on and what must change Personal Life Line - Personal leadership patterns strengths & weaknesses Steps 3 & 4: Purpose & Values Why we do what we do Defining purpose & intention Clarity of priorities & values, creating a sense of belonging & affiliation Step 5: Vision: Aligning Culture & Strategy Creating a culture of Security & Trust Define the Vision KRA s, Build trust Step 6: Barriers Identifying blocks that compromise us. Root causes How to release the energy & create engagement of people? Steps 7, 8, 9: Goals, Strategies & Action Responsibility & accountability for change, Choices, Crucial Conversations, Iconic Moves, Vital Behaviours, Not to do list Developing solutions Step 10: Implementation Agree plans & measures, Develop Personal Commitments April 2016 METRO AG 2016 16
MCC Business Principles from the individual to the company Self responsibility, self leadership, self confidence, engagement, transparency, respect will help to bring life to principles April 2016 METRO AG 2016 17
THE PROCESS OF LFG Kick-off LfG 1 end 2012: Start of the roll out first wave of leadership workshop Training of managers by OLA Managers train their teams Q1 2014: 95% employees within METRO Cash & Carry trained Topic: reflection of self between the poles of private life and business life Mid 2014 Start of the second wave; LfG2 The aim of the LfG 2 workshop is to strengthen leadership capabilities to drive alignment, engagement and accountability throughout the organization and to foster cross-functional collaboration. Topic: Building up competencies to realize the outcome of LfG 1 within the teams Q4 2015: 70% management positions trained April 2016 METRO AG 2016 18
HEALTH MANAGEMENT AND LEADERSHIP FOR GROWTH Mental wellbeing = creativity = engagement = motivation = increased productivity Individual Self management Focus on living in the present moment Adult-to-adult relations Identifying barriers Team Adult-to-adult relation Clear visions for the future Goals that everyone can relate to. Organization Grounding people in their core values helps to necessary change. Commitment of staff people by alignment of personal principles with company s principles Business Principles and Leadership for Growth April 2016 METRO AG 2016 19
THANKS FOR YOUR ATTENTION METRO GROUP Peter Wiesenekker International Labour Relations and Health & Safety Management Metro-Straße 1 40235 Düsseldorf Germany Phone: +49 (211) 6886-1408 peter.wiesenekker@metro.de April 2016 METRO AG 2016 20