Q1 2015/16 RESULTS PRESENTATION 11 February 2016
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 forwardlooking statements may be subject include (without limitation) future market and economic conditions, the behaviour of other market participants, invest in innovative sales formats, expand in online and multichannel sales activities, integrate acquired businesses and achieve anticipated cost savings and productivity gains, and the actions of government regulators. Readers are cautioned not to place reliance on these forward-looking statements. See also Risk and Opportunity Report on pages 121-138 of the METRO GROUP Annual Report 2014/15 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. Activities of Galeria Kaufhof group are disclosed as discontinued operations in Q1 2014/15. Previous year s figures have been adjusted (with the exception of the balance sheet). 11 February 2016 METRO AG 2016 1
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 pullforward 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 11 February 2016 METRO AG 2016 2
NEW STEERING CLUSTER FOSTERS THE NEW METRO CASH & CARRY OPERATING MODEL Strict focus on customer groups to support Strategic steering Knowledge sharing Implementation of best practice approaches Horeca France Germany Italy Japan Portugal Spain Turkey Classic Fine Foods Trader Moldova Poland Romania Ukraine Multispecialists Austria Belgium Bulgaria China Croatia Czech Republic Hungary India Kazakhstan Netherlands Pakistan Russia Serbia Slovakia Horeca Q1 2015/16 sales share Multispecialists 48% 42% 10% Trader 11 February 2016 METRO AG 2016 3
EBIT Q1 2015/16 (BEFORE SPECIAL ITEMS) IMPACTED BY NEGATIVE CURRENCY EFFECTS in million 891 ~-40 ~851 828 Q1 2014/15 Negative Q1 2014/15 FX Impact (Comparable) Q1 2015/16 11 February 2016 METRO AG 2016 4
Q1 2015/16: SALES AND EBIT BY DIVISION Δ million Sales Q1 2015/16 Change Like-for-Like Change EBIT Q1 2014/15 EBIT comparable Q1 2014/15 EBIT Q1 2015/16 Q1 2015/16 vs Q1 2014/15 comparable METRO Cash & Carry 8,037-2.0% 0.2% 481 ~448 458 +10 Media-Saturn 6,889 0.2% 0.4% 349 ~342 309-33 Real 2,144-3.9% -1.6% 84 84 83-1 Others/Consolidation 19 - - -23-23 -22 +1 METRO GROUP 17,090-1.3% 0.1% 891 ~851 828-23 in 10 th consecutive quarter with LfL sales growth; EBIT adjusted for FX above PY, good development in Germany, Italy, Spain, Turkey as well as Romania and Ukraine could compensate the expected slow down in Russia 6 th consecutive quarter with LfL sales growth despite very strong PY comps; EBIT impacted by one-time pull-forward effects in Russia in PY, price investments and repositioning of Redcoon LfL performance below previous year level due to the challenging overall environment; EBIT on PY level supported by cost efficiency and new cooperations 11 February 2016 METRO AG 2016 5
Q1 2015/16: INCOME STATEMENT (EBIT TO EPS) million Q1 2014/15 Q1 2015/16 EBIT 891 828 Net financial result -110-104 EBT 781 724 Income Taxes -365-307 Profit or loss for the period from continuing operations 416 417 Profit or loss for the period from discontinued operations 85 0 Profit or loss for the period 501 417 EPS in from continuing operations 1.10 1.12 EPS in 1.36 1.12 Net financial result improved due to lower interest level but partially absorbed by FX-losses Tax rate of 42.4% in line with FY guidance (Q1 2014/15: 46.8%) 11 February 2016 METRO AG 2016 6
Q1 2015/16: OTHER KEY FINANCIALS million Q1 2014/15 Q1 2015/16 Change Net debt (as at 31/12) 1,509 142-1,367 Net working capital (as at 31/12) 1 4,650 4,017-633 Change in net working capital (cash flow impact) 2,272 2,015-257 Cash flow from operating activities 3,316 3,069-247 Capex 1 162 337 175 Number of new store openings 22 11-11 1 adjusted for Galeria Kaufhof Net debt further reduced by 1.4 billion to all-time low of 0.1 billion Net working capital and cash flow from operating activities impacted by changes in business model (online, services, delivery etc.) Capex of 337 million mainly invested in lease prolongations, modernization, remodellings and expansion 11 February 2016 METRO AG 2016 7
METRO CASH & CARRY: HIGHLIGHTS Q1 2015/16 Positive LfL sales growth driven by Christmas business in Germany, good development mainly in Italy, Spain, Turkey as well as Romania, Ukraine which could compensate the expected slow down in Russia Horeca with LfL sales growth of 1.5%; Germany with very positive development Multispecialists impacted by high PY comps of Russia, but FX adjusted with positive sales development Trader with positive LfL sales development mainly driven by Romania and Ukraine Delivery sales increased by 18.6% (10.8% of total sales) 5 new store openings Sale of METRO Cash & Carry Vietnam successfully closed Integration of Classic Fine Foods completed First accelerator for digital business in the hospitality sector launched together with Techstars and R/GA 1.4 Q1 8.6 Q1 Like-for-Like Sales Development in % 2014/15 2015/16 1.1 1.1 0.1 0.2 Q2 Q3 Q4 Q1 Delivery Sales Share in % 2014/15 2015/16 10.1 10.9 11.8 10.8 Q2 Q3 Q4 Q1 11 February 2016 METRO AG 2016 8
TECHSTARS METRO ACCELERATOR DEMO DAY IN BERLIN 1 st Techstars METRO accelerator successfully concluded 11 start-ups introduced new approaches to generate value in the hospitality sector First step in a very sizable sector which until now has not taken advantage of digital innovation Very strong cooperation with Techstars and R/GA 11 February 2016 METRO AG 2016 9
SALE OF METRO CASH & CARRY VIETNAM: KEY TRANSACTION FACTS On 6 January 2016 sale of METRO Cash & Carry Vietnam to TCC was successfully completed EBIT gain of 427 million in Q1 Positive cash inflow of 441 million in Q2 Further reduction of net debt on balance and rating-relevant net debt of METRO GROUP by ~ 440 million in Q2 METRO Cash & Carry entered the Vietnamese market in 2002, operated 19 wholesale stores across the country with more than 3,300 employees and generated sales of 507 million in the financial year 2014/15 11 February 2016 METRO AG 2016 10
STRATEGIC UPDATE Operating Model All countries have started their respective Value Creation Plan (VCP) process. First countries to finish their plans in Q3 Operating Partner for China and Japan has been hired Value Creation Team has been extended Classic Fine Foods: Sound and stable development Strong sales development Strategic cooperation with METRO Cash & Carry kicked off in countries like China and Japan Setup of new Digital Horeca unit Small team dedicated to identify and capture value creation opportunities for our customers and METRO Cash & Carry New leader hired for the unit Innovation effort intensified 11 February 2016 METRO AG 2016 11
MEDIA-SATURN: HIGHLIGHTS Q1 2015/16 Strong LfL sales growth driven by several countries in Western Europe, especially in Germany Extraordinary tough sales comps in Russia fully compensated The Netherlands, Spain and Turkey with good LfL sales development Market share increased again in most countries and led to all-time high market share Very strong growth in online sales of Media Markt and Saturn (+34% vs PY) Redcoon integration on track; discontinuation of wholesale business EBIT performance impacted by one-time pull-forward effects in Russia in PY, price investments and repositioning of Redcoon 6 new store openings 3.8 Q1 512 Q1 Like-for-Like Sales Development in % 2014/15 2015/16 5.2 2.9 0.2 0.4 Q2 Q3 Q4 Q1 Online Generated Sales in million 2014/15 2015/16 574 436 404 415 Q2 Q3 Q4 Q1 11 February 2016 METRO AG 2016 12
MEDIA-SATURN S TECH ACCELERATOR Four companies with strong service focus selected (Expertiger, DTB, Kaputt.de, Myhomeservice) First pilot cooperations launched in selected Media-Saturn stores Registration phase for 2 nd accelerator batch already initiated; Start in summer 2016 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 11 February 2016 METRO AG 2016 13
STRATEGIC UPDATE Service Business further intensified (sales development ~+10%) RTS integration on plan, new offerings being prepared Same-Day-Delivery Service now offered in 175 cities in Germany (394 stores are connected) Pilot with 15 stores in Vienna started, further roll-out planned (NL, HU, GR) Saturn Connect Saturn Connect Cologne chosen Store of the Year 2016 by the HDE Award for an innovative store concept that offers digital lifestyle products and services in a unique exciting setting Shop-in-Shop within METRO Cash & Carry Media Markt piloting shop-in-shop concept at METRO Cash & Carry 2 pilot stores in Russia and 2 in Turkey Media Markt Club Card Media Markt loyalty program piloted in 10 stores in Germany; roll-out to all stores and online planned. Roll-out in the Netherlands (stores and online) completed 11 February 2016 METRO AG 2016 14
REAL: HIGHLIGHTS Q1 2015/16 LfL sales down 1.6% mainly driven by Non Food development 107 remodeled stores with ongoing positive contribution to sales development and customer frequency EBIT on PY level supported by cost efficiency and new cooperations Ongoing negotiations with German Trade Union Verdi Online sales growth of around 70% Further advanced planned pilot store including an even stronger differentiation on assortment and service levels Like-for-Like Sales Development in % 2014/15 2015/16 0.9 1.1-1.6-1.6-3.7 Q1 Q2 Q3 Q4 Q1 EBIT Development in million 2014/15 2015/16 84 5 35 83-36 Q1 Q2 Q3 Q4 Q1 11 February 2016 METRO AG 2016 15
OUTLOOK 2015/16: FINANCIAL TARGETS million Reported FY 2014/15 Guidance FY 2015/16 LfL sales growth +1.5% >0% 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 11 February 2016 METRO AG 2016 16
Q&A Olaf Koch CEO Mark Frese CFO 11 February 2016 METRO AG 2016 17
CONTACT Investor Relations Metro-Straße 1 40235 Duesseldorf Germany Tel.: +49 (0)211 6886-1051 Fax: +49 (0)211 6886-3759 Email: investorrelations@metro.de Internet: www.metrogroup.de 11 February 2016 METRO AG 2016 18
BACK-UP
SPECIAL ITEMS million Q1 2014/15 Q1 2015/16 Portfolio Optimisation Measures 0-427 Restructuring and Efficiency- Enhancing Measures 15 6 Goodwill-Impairments 0 0 Others 1 9 METRO GROUP 16-412 In Q1 2015/16 mainly positive portfolio measures from METRO Cash & Carry Vietnam 11 February 2016 METRO AG 2016 20
STORES BY DIVISION AND COUNTRY * Including 4 stores in the Others segment 11 February 2016 METRO AG 2016 21
SALES: RECENT QUARTERS ACCORDING TO THE NEW METRO CASH & CARRY OPERATING MODEL Q1 2014/15 Q2 2014/15 Q3 2014/15 Q4 2014/15 12M 2014/15 Q1 2015/16 LC LfL LC LfL LC LfL LC LfL LC LfL LC LfL Horeca -0.1% 0.1% 0.3% -0.1% -1.0% -0.1% 0.2% 0.3% 0.1% 0.9% 1.8% 0.4% 0.2% 0.3% 0.4% 2.7% 3.5% 1.5% Multispecialists -4.1% 5.0% 3.1% -0.9% 5.1% 2.8% 0.6% 0.8% 1.7% -4.2% 2.3% 1.2% -2.3% 3.3% 1.2% -3.5% 0.3% -1.9% Trader -12.5% -3.5% -0.4% -9.1% 0.6% 1.0% -0.4% 2.2% 1.9% -0.5% 3.8% 2.5% -5.9% 0.6% 2.5% -2.1% 3.4% 3.4% Others - - - - - - - - - - - - - - - - - - METRO Cash & Carry -3.6% 1.1% 1.4% -2.5% 0.3% 1.2% -1.3% 1.3% 0.9% -3.2% 0.0% 0.9% -2.7% 0.0% 0.9% -2.0% 0.4% 0.2% 11 February 2016 METRO AG 2016 22