Q1 2014/15 RESULTS PRESENTATION - metrogroup.de · METRO GROUP, Q1 2014/15 Results Presentation 10...

Q1 2014/15RESULTS PRESENTATION10 February 2015

METRO GROUP, Q1 2014/15 Results Presentation

10 February 2015| © METRO AG 2015 1

DISCLAIMER AND NOTESTo the extent that statements in this presentation do not relate to historical or current facts, they constitute forward-looking statements. All forward-lookingstatements herein are based on certain expectations and assumptions at the time of publication of this presentation and are subject to risks and uncertainties thatcould cause actual results, performance or financial position to differ materially from any future results, performance or financial position expressed or implied in thispresentation. Many of these risks and uncertainties relate to factors that are beyond METRO GROUP’s ability to control or estimate precisely. The risks anduncertainties to which these forward-looking statements may be subject include (without limitation) future market and economic conditions, the behaviour of othermarket participants, investments in innovative sales formats, expansion in online and multichannel sales activities, integration of acquired businessesand achievement of anticipated cost savings and productivity gains, and the actions of government regulators. Readers are cautioned not to place too much relianceon 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 dateof such Annual Report. METRO GROUP does not undertake any obligation to publicly update any forward-looking statements or to conform them to events orcircumstances 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 €0.5million 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 totalcomprehensive income, the balance sheet, the statement of changes in equity and the cash flow statement were rounded to produce the respective totals. In all othertables, the individual amounts and the totals were rounded separately. This may entail rounding differences.



2.1

-0.2-1.4-1.8-2.2

Q1 2014/15 HIGHLIGHTS

Significant LfL growth of 2.1% driven by Media-Saturn and METRO Cash & CarryBest LfL growth in Christmas quarter for many yearsAll divisions with LfL growth in DecemberMarket share and position in many countries strengthenedSuccessful transformation progress continued:

Own brand share at 10.3% of salesDelivery sales: €0.7 billion (+10.8%)Online sales: €0.6 billion (+31%)

EBIT above prior year’s level if FX adjustedNet debt further reduced by €0.9 billion to €1.5 billionSale of MAKRO Cash & Carry Greece successfully closed

Q12010/11

Q12013/14

Q1 2011/12

Q1 2012/13

Q12014/15

Q1

2.1

Q4

0.7

Q3

1.7

Q2

-1.8

Q1

-0.2

2013/14 2014/15

Like-for-Like Sales Development in %

418276

-40

1,0241,0732013/14 2014/15

EBIT in € million

Q1 Q2 Q3 Q4 Q1

Like-for-Like Sales Christmas Quarter in %



APPRECIATION OF EBIT Q1 2014/15 (BEFORE SPECIAL ITEMS)

1,024

Q1 2014/15Q1 2013/14 (Comparable)

~1,013

Negative FX Impact

~60

Q1 2013/14

1,073

in € million



Q1 2014/15: SALES AND EBIT BY DIVISION

6th consecutive quarter with LfL growth; EBIT on PY level if adjusted for FX Strongest LfL growth since Q1 2007; significant EBIT development driven bytop-lineLfL growth driven by strong Christmas business; EBIT development influenced by targetedmarketing investments and missing EBIT contribution from Real Eastern EuropeMild weather in October and November dampened LfL sales and led to higher price investments than usual

ChangeLike-for-Like

Change€ millionMETRO Cash & Carry 8,197 -3.6% 1.4% 540 ~480 481 1Media-Saturn 6,875 4.1% 3.8% 289 289 349 +60Real 2,231 -14.4% 0.9% 98 98 84 -13Galeria Kaufhof 993 -1.0% -1.4% 159 159 139 -20Others/Consolidation 15 - - -13 -13 -30 -17METRO GROUP 18,311 -2.2% 2.1% 1,073 ~1,013 1,024 +11

Sales Q1 2014/15

EBIT reported

Q1 2013/14

EBIT comparableQ1 2013/14

EBITreported

Q1 2014/15

Q1 2014/15vs Q1 2013/14comparable



Q1 2014/15 INCOME STATEMENT (EBIT TO EPS)

Net financial result improved due to lower net debt and interest level

Tax rate of 44.9% in line with FY guidance (Q1 2013/14: 46.1%)

€ million

Q1 2013/14

Q1 2014/15 ChangeEBIT 1,073 1,024 -49Net financial result -141 -115 +26EBT 932 909 -23Income Taxes -429 -408 +21Profit or loss for the period 503 501 -2Non-controlling interests 63 56 -7EPS in € 1.35 1.36 +0.01



Q1 2014/15: OTHER KEY FINANCIALS

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 developmentCapex of €176 million mainly invested in expansion and remodellings

€ million

Q1 2013/14

Q1 2014/15 ChangeNet debt (as at 31/12) 2,402 1,509 -893

Net working capital (as at 31/12) 4,603 4,551 -52Change in net working capital (cash flow impact) 2,288 2,357 +69

Cash flow from operating activities 3,5691 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



METRO CASH & CARRY: HIGHLIGHTS Q1 2014/15

Solid LfL growth driven by Eastern Europe and AsiaSigns of stabilization in Western Europe; most countries with positive LfL growthGermany 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 openingsSale of METRO Cash & Carry Vietnam on trackAll stores in Denmark closed; sale of MAKRO Cash & Carry Greece successfully completed

Q1

1.4

Q4

0.1

Q3

2.0

Q2

0.8

Q1

0.9

2013/14 2014/15


Q3

9.4

Q2

9.4

Q1

7.9 8.6

Q4

10.0

Q1

2013/14 2014/15

Delivery Sales Share in %



STRATEGIC UPDATE

Implementation of new pricing strategy Price-performance ratio as key factor for customer loyaltyAnalysis and improvement of price perception vs price reality Transparency and stable prices to increase sales volume and profit

Continuation of successful marketing campaignsProject 51: METRO United

Special marketing offersSales promotion activities

You & METROBocuse d‘Or



MEDIA-SATURN: HIGHLIGHTS Q1 2014/15

Strong LfL growth driven by all regionsSpain, Russia, Hungary and Poland with doubledigit LfL growthFurther dynamic growth in online sales (+28.7%),7.4% of total salesInternet product offering increased to around 90,000 SKUs at www.mediamarkt.de and around 80,000 SKUs at www.saturn.de13 new store openings

Q1

3.8

Q4

1.7

Q3

-0.2

Q2

-3.7

Q1

-1.0

2013/14 2014/15


512353328363403

Q3Q2Q1 Q1Q4

2013/14 2014/15

Online Sales in € million



STRATEGIC UPDATE

New store concept IngolstadtNew ways of combining the on- and off-line activitiesExciting shopping experience on 3.400 sqmLarger product range and topic islandsNovelties (Drive-in, charging stations for smart phones and electric cars, a gigantic interactive video screen combination, interactive tariff advisor)

InnovationFirst Saturn store introduces 24-hour pickup stationLaunch of online stores on eBay (Media Markt listing over 52,000 electronic products and Saturn over 41,000 articles)



REAL GERMANY: HIGHLIGHTS Q1 2014/15

3rd consecutive quarter of LfL sales growthStrong Christmas business driven by dry food, sweets and beverages50 remodelled stores continued to outperform; roll-out to another 32 stores in MarchOwn 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

Q1

0.9

Q4

0.2

Q3

5.1

Q2

-6.6

Q1

-2.1

2013/14 2014/15

Like-for-Like Sales Development in Germany in %



GALERIA KAUFHOF: HIGHLIGHTS Q1 2014/15

Market share gains in textile despite LfL declineMild weather prevented a better sales developmentWebshop with continued strong growth of 38.8%New store opening in Hasselt, BelgiumLaunch of new online shop in Belgium (www.inno.be)

-1.4

1.22.2

-1.9

0.6

2013/14 2014/15


Q1 Q2 Q3 Q4 Q1

0.8

3.1

1.2

Delta Galeria Kaufhof vs Textile Market – change vs. py in %

2013 2013/14 Q1 2014/15

-0.4

-6.3

-0.6

Textile Market – change vs py in %

2013 2013/14 Q1 2014/15



THE CORE OF OUR STRATEGY



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

http://edge-cdn.net/video_802815?playerskin=41328



“FAST FORWARD“ WITH THE TECHSTARS METRO ACCELERATOR

Seeking the best digital innovations for hotelsand 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



COUNTRYPORTFOLIO

INNOVATION AND M&A ARE A CRUCIAL INGREDIENT FOR THE ENHANCEMENT OF OUR PORTOLIO

GROUP STRATEGY

BUSINESS MODEL –PORTFOLIO

STRATEGICINITIATIVES



EVOLUTION AND REVOLUTION: UTILIZING OUR STRENGTH

100 million customers p.a.80 million customer cards (METRO Card & Payback)1.6 billion store visits, 900 million online visits

2,200 stores with 13 million sqm sales floor30 countries and > 60 websites and apps> 2 billion direct marketing contacts5,500 sales force representatives

~ €50 billion purchasing volume100% of the important suppliers in our categories – with global reach

Three decisive success factorsfor scaling new business models

Customer AccessCustomer Access

Marketing &Selling PowerMarketing &

Selling Power

SourcingSourcing

Founding Growing



OUTLOOK 2014/15: FINANCIAL TARGETS

€ billlion

ReportedFY 2013/14

GuidanceFY 2014/15

Sales growth1.2 +1.3% >0%

LFL sales growth +0.1% >0%

EBIT before special items 1.727 >1.7272

Capex 1.2 <1.7

Net debt 4.7 <4.7

Number of new store openings 68 ~501Adjusted for portfolio changes 2Based on constant foreign exchange rates



Q&A

Mark FreseCFO

Olaf KochCEO



CONTACT

Investor Relations

Metro-Straße 1

40235 Duesseldorf

Germany

Tel.: +49 (0)211 6886-1051

Fax: +49 (0)211 6886-3759

Email: [email protected]

Internet: www.metrogroup.de

BACK-UP



SPECIAL ITEMS

In Q1 2014/15 mainly Real for restructuring measures



STORES BY DIVISION AND COUNTRY

Q1 31.12.14 Q1 31.12.14 Q1 31.12.14 Q1 31.12.14 Q1 31.12.14

Germany 107 +1 416 -5 302 -2 120 -6 945Austria 12 47 59Belgium 15 +1 24 +1 16 +2 55Denmark -5 -5France 93 93Italy 49 117 166Luxemburg 2 2Netherlands 17 +3 48 +3 65Portugal 10 9 19Spain 37 +2 74 +2 111Sweden 27 27Switzerland 25 25Western Europe (excl. Germany) -5 233 +6 373 +1 16 +2 622Bulgaria -1 13 -1 13Croatia 7 7Czech Republic 13 13Greece 9 10 19Hungary 13 21 34Kazakhstan 8 8Moldova 3 3Poland 41 +1 72 +1 113Romania -1 31 -1 31Russia +7 80 +5 68 +12 148Serbia 10 10Slovakia 6 6Turkey 28 39 67Ukraine 33 33Eastern Europe +5 295 +6 210 +11 505China +2 80 +2 80India 16 16Japan 9 9Pakistan 9 9Vietnam 19 19Asia +2 133 +2 133Total +2 768 +13 999 -5 302 -1 136 +9 2,209*

* including 4 stores in Others

Media-Saturn Real Galeria Kaufhof METRO GROUPMETRO Cash & Carry

Q1 2014/15 RESULTS PRESENTATION - metrogroup.de · METRO GROUP, Q1 2014/15 Results Presentation 10...

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