annual general meeting 2015media-saturn 20,981 -0.3% -0.9% 299 ~318 335 +17 real 8,432 -18.7% -0.8%...

20 February 2015

ANNUAL GENERAL MEETING 2015

METRO AG | Annual General Meeting 2015 120 February 2015 | © METRO AG 2015

AGENDA.

01 METRO GROUP in Transformation

02 Financials FY 2013/14

03 Strategic Update

04 Outlook 2014/15

05 METRO GROUP in Transformation II


THE CORE OF OUR STRATEGIC REPOSITIONING.


THIS REQUIRES A VARIETY OF CHANGES…

Allocation of Resources

Business Model

Corporate Culture

InnovationNew Capabilities


SUSTAINABLE PROGRESS.

Better sales, higher earnings, stronger balance sheet, more motivated teams

LFL Sales

Dividend€0.90

EPS

Net Debt

Major challengesSluggish economic environment

Geopolitical crisis

Weak currencies in emerging markets

Major achievementsSystematic focus on our customers in terms of

AssortmentServicesSolution competences

Improved corporate cultureActive portfolio management

Strong progress in employee engagement survey (EEI)


INNOVATION AND TRANSFORMATION ACCELERATED.

€2.8 billion2009 €597 million

2013/142020

Delivery

Online

Fast expansion in delivery and online businessInvestment in new business

Redcoon, MidBan, Emmas Enkel etc.Business Innovation team installedNew talent on board

0

20202013/14 €1.4 billion

2009


OUR SUSTAINABILITY COMMITMENT MAKES STRONG PROGRESS.

Achievements METRO GROUPTransparent supply chain for fish and meatReduction of our carbon footprintMore products with fair trade and organic labelsInnovative solutions for our customers

Awards 2013/14Listing in Dow Jones Sustainability Europe and World IndicesFirst time membership in FTSE4Good Europe and Global IndicesCarbon Disclosure Leader with a new record of 98 out of 100 points

New Corporate Responsibility Report available


AGENDA.



03 Strategic Update

04 Outlook 2014/15



FY 2013/14: ALL FINANCIAL TARGETS ACHIEVED.

€ billlion

Pro formaFY 2012/13

GuidanceFY 2013/14

ReportedFY 2013/14

Sales growth1.2 -1.4% >0% +1.3%

LfL sales growth -1.3% ~0% +0.1%

EBIT before special items 2.0 ~1.752 1.727

Capex 1.2 <1.4 1.2

Net debt 5.4 <5.4 4.7

Number of new store openings 91 ~70 681Adjusted for portfolio changes 2Based on constant foreign exchange rates

Financial result improved Improvement by €77 million compared to previous year*

Refinancing of a high-yield bond through a very successful bond emission (1.375% for 7 years)

Earnings per share* increased€1.84 per share (following €1.47 last year)

*)before special items


LfL sales increased by 1.0%; comparable EBIT above PY level

Strong finish with Q4; EBIT improvement driven by better development of sales and margins and strict cost control

Significantly stronger development of sales after April, EBIT benefited from more efficient cost structures and real estate gains

Continued positive LfL growth and solid EBIT development despite further investments in online presence

SALES AND EBIT BY DIVISION.

*)before special items

ChangeLike-for-Like

Change€ millionMETRO Cash & Carry 30,513 -2.1% 1.0% 1,379 ~1,049 1,125 +76Media-Saturn 20,981 -0.3% -0.9% 299 ~318 335 +17Real 8,432 -18.7% -0.8% 145 ~58 81 +23Galeria Kaufhof 3,099 0.5% 0.5% 229 ~202 193 -9Others 10 -24.3% - -54 -54 -6 +48Consolidation 0 - - 2 2 0 -2METRO GROUP 63,035 -4.0% 0.1% 2,000 ~1,575 1,727 +152

Sales FY 2013/14

EBIT reported

FY 2012/13

EBIT comparableFY 2012/13

EBIT reported

FY 2013/14

FY 2013/14vs FY 2012/13comparable


NET DEBT SIGNIFICANTLY REDUCED.

Net debt significantly reduced by more than €3 billion over the last two years

Average net debt 2013/14 at €4.6 billion

-€3bn

in € million

31.12.2013

4.655

30.09.2014 31.12.2014

2.402

30.09.2013

5.391

31.12.2012

3.245

30.09.2012

7.734

1.509


Q1 2014/15 HIGHLIGHTS.

Significant LfL growth of 2.1% mainly driven by Media-Saturn and METRO Cash & Carry

Best LfL growth in Christmas quarter for many years

Market share and position in many countries strengthenedSuccessful 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 (1.024 mn. € (beforespecial items)

Net debt further reduced by €0.9 billion to €1.5 billion

Sale of MAKRO Cash & Carry Greece successfully closed, METRO Cash & Carry Denmark closed

2.1

-0.2-1.4-1.8-2.2

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 %


LONG-TERM SALES TREND CONTINUOUSLY IMPROVED.

2.5

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

1.5

2.0

0.5

1.0

DNJ J A S N D J2014

O F M A M J JJ2013

MN AD AFO M S OSAJJMAMFJ2012

METRO GROUPGERMANY

METRO GROUPINTERNATIONAL

Rolling LfL 12-month sales development January 2012 to December 2014 in % year-on-year

METRO GROUP


AGENDA.



03 Strategic Update

04 Outlook 2014/15


METRO AG | Annual General Meeting 2015 1420 February 2015 | © METRO AG 2015 page 14

OUR GOAL IS …OUR GOAL IS …

METRO AG | Annual General Meeting 2015 1520 February 2015 | © METRO AG 2015 page 15

OUR GOAL IS …… THE SUCCESS OF OUR CUSTOMERS

OUR GOAL IS …… THE SUCCESS OF OUR CUSTOMERS


METRO CASH & CARRY: HIGHLIGHTS FY 2013/14.

LfL sales increased by 1.0%

Successful 50 years marketing campaign

Eastern Europe and Asia with positive LfL growth,

Germany improving

Focus on USP food shows first results:

LfL food sales +2.1%

Delivery sales increased by 9.5% to €2.8 billion

Own brand sales share 17.0%

17 new store openings, 3 store closures

706 669 648 708 760

2.785

0,9% 0,9% 0,8%

2,0%

0,1%1,0%

Like-for-Like Sales Development

Delivery Sales in € million

2012/13 2013/14

2012/13 2013/14

Q4 Q1 Q2 Q4

Q4 Q1 Q2

Q3

Q4Q3

FY

387 540

43281 261

1.125EBIT Development in € million

2013/14

Q4 Q1 Q2 Q3 Q4 FY

2012/13

FY


STRATEGIC UPDATE – SIGNIFICANT PROGRESS.

Specific concepts for key customer groups

Food Service Distribution (FSD) and new city store formats for HoReCa

Trader soft and hard franchise (more than 6,000 shops)

Advanced business solutions and new non-food world for SCOs

Successful 50 years campaign:

Global brand campaign run in all countries

Huge advertising presence (share of voice) and commercial success

Planning new campaign for autumn 2015: YOU & METRO United

Further intensification of our “Partnership Commitment”

Industry events, Bocuse d‘Or, Community Stars

Strategic partnership with Groupe Auchan

Purchasing cooperation in food and non-food

Number one buying platform in Europe


IMPRESSIONS OF OUR GLOBAL 50TH ANNIVERSARY CAMPAIGN.


Content is uploaded to You Tube and will be consumed for 5 years

GROWING DYNAMICS OF CHANGE!

What happens on the Internet in one minute…

Quelle: Intel

A look into the (near) future: By 2017…

mobile data traffic will increase fivefold (compared to 2012)

there will be 3 times more connected devices than people on earth

1.5 million GB data traffic 4.1 million Google searches

3.3 million pictures, videos, etc. uploaded to Facebook


DIGITISATION IS OPENING UP NEW OPPORTUNITIES FOR OUR CUSTOMERS.

Digital communication

Digital communication

Onlinereservations

Onlinereservations

New servicesNew services

Increase in efficiencyIncrease in efficiency

Social mediaSocial media

Product innovationProduct innovation SustainabilitySustainability


HOTELS AND RESTAURANTS IN WESTERN EUROPE: A HUGE MARKET POTENTIAL, BUT HARDLY DIGITAL.

MARKET POTENTIAL HOSPITALITY SECTOR

2 mnCompanies (hotels, restaurants, caterers)

€400 bnSales

€120 bnPurchasing volume

~35% without a website

~78% without presence at a bookingplatform

Digital toolswith underdeveloped use(food communities, paymentsolutions, etc.)

Source: MCC countries Western Europe, data exclude VAT

USE OF TECHNOLOGY


HOTELS AND RESTAURANTS IN WESTERN EUROPE: CHANCES THROUGH STRONG PARTNERS AND NEW TECHNOLOGY.

MARKET ACCESS METRO C&C

1.4 mnactive, registeredHoReCa customers

3,000 sales representatives

€6.5 bn sales hotels, restaurants and caterers

Source: MCC countries Western Europe, data exclude VAT

Foto-Collage aus unseren Mitarbeitern (positive Bildsprache, Beratung, Support für unsere Kunden etc.) sowie Technologie-Lösungen für HoReCa-Kunden (Delivery/Online-Bestellung etc.)


“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


WHAT WE BRING TO THE TABLE.

Very strong EXPERTISE in HoReCaVery strong EXPERTISE in HoReCa

ACCESS TO CUSTOMERS ACROSS EUROPEACCESS TO CUSTOMERS ACROSS EUROPE

International NETWORK OF EXPERTSInternational NETWORK OF EXPERTS

Powerful SALESPowerful SALES

“PARTNERSHIP”“PARTNERSHIP”

Access to the INDUSTRYAccess to the INDUSTRY


STRATEGIC AMBITIONS.

Market Leadership in well-defined sectors through unique product ranges

and a strong focus on B2B solutions

Champion for Independent Business

Clear focus on target groups – localised strategy for each country

Strong differentiation through exceptional food competence

Serving our customers via a diversity of channels

Extending our solution competence, including own brands

Further improving the engagement index

Leveraging economies of scale, permanent cost optimisation


MEDIA-SATURN: HIGHLIGHTS FY 2013/14.

283 403 363 328 353

1.446

-1,9% -1,0%-3,7%

-0,2%

1,7%

-0,9%


Online Sales in € million

2013/14

2012/13 2013/14

Q4 Q1 Q2 Q4

Q1 Q2

Q3

Q4Q3

FY

75289

-14 -70

130335

EBIT Development in € million2013/14

Q1 Q2 Q3 Q4 FY

FY

2012/13

2012/13

Q4

Q4

LfL sales down 0.9% but with strong finish (LfL Q4: +1.7%)

Continued strong growth in online sales: +30% to €1.4 billion

Internet offering comprises almost 90,000 products at Media Markt

and more than 80,000 at Saturn

Multi-channel strategy is bearing fruits: market share gains in 10 out of

15 countries with a store pick-up share > 40%

Recognition as “distribution partner of choice” further

improved

50 new store openings, 12 store closures

EBIT improved for the first time since 2009 to € 335 million.

Leadership and governance further stabilised

Advisory Board established, approved by the courts and in working mode

Pieter Haas delegated to Media-Saturn-Holding as Managing Director and appointed Vice Chairman


STRATEGIC UPDATE.Successful progress of the multichannel concept for the brands Media Markt and Saturn:

Expansion of multi-channel functionalities:

Number of web visits: +14% to 730 million

Online sales +30%. Pick-up share up to 50%

Deployment of digital technology to the stores (e.g. electronic price tags)

Innovative assortments (Smart Home, Wearables)

Extension of the service offer

Smaller stores (<3,000 m²)

Detailed store analysis in case of expiring lease contracts and exercising of options

Piloting of new formats

Electronic Online Group (EOG)Bundling different sales concepts under one roof



Europes leading supplier for consumer electronics

customer-oriented, digital + multichannel, service-oriented

Focus on basic formats:Multichannel “anywhere and anytime” concepts (Media Markt, Saturn)Pure Play Online (redcoon)

Further increasing customer attractiveness

Continuing and intensifying the omni-channel implementation

Expanding our service offering

Innovation leadership in our industry

Enhancing position as “partner of choice” for suppliers

Further improving cost position


REAL GERMANY: HIGHLIGHTS FY 2013/14.

LfL sales down 0.9% but with improving trend (LfL Q4: +0.2%) despite food price deflation50 remodeled stores with positive momentum

Own brand sales share increased to 16.3%

Online sales increased by 15.5% to €22 million

Ongoing streamlining of store portfolio: Closing 14 non-

profitable stores until end of FY 2014/15

Management board with reorganised responsibilities

-0,4%-2,1%

-6,6%

5,1%

0,2%

-0,9%

Like-for-like sales development in Germany

2012/13 2013/14

Q4 Q1 Q2 Q3 Q4 FY

REAL EBIT development in € million

17

93

-35

128

882013/14

Q4 Q1 Q2 Q3 Q4 GJ

2012/13


STRATEGY UPDATE – DIVERSITY AND QUALITY ARE OUR STRENGTHS.

Improved customer offeringKey differentiator: ultra fresh categories, own butcher “Meistermetzger” in every storeMore regional productsAttractive range of own brandsSignificantly more targeted marketing campaignsAttractive marketing campaigns

Modernisation of the store baseRemodelling of 60 stores planned for this FY Optimised use of store space

Extending multichannelDrive concept: two more stores Click & collect: launching pilot in BerlinHome delivery: pilot project “Live” in CologneStake in Emmas Enkel



Further building on the strengths of diversity, freshness

competence and localisation.

Expanding the own brand offering

Intensifying multichannel activities

Continuing the remodelling program

Securing a sustainable profitability

The food retail format that offers the largest diversity,

strong freshness competence and innovative solutions.


GALERIA KAUFHOF: HIGHLIGHTS FY 2013/14.

LfL sales improved by 0.5% driven by Germany (+0.8%)

Webshop with continued strong sales growth of 64%

Further market share gains in the German textile market

Introduction of 1,100 tablets in all department stores to

support multichannel approach

New corporate and management structure successfully

implemented

1,1% 0,6%

-1,9%

2,2%1,2% 0,5%


2012/13 2013/14

16

159

-2

22 14

193

EBIT Development in € million

2012/13 2013/14

Q4 Q1 Q2 Q3 Q4 FY

Q4 Q1 Q2 Q3 Q4 FY


STRATEGIC UPDATE.

Aligning the assortment and format with customer demandsFurther optimisation of assortmentsLocal focusContinuing the modernisation of the department stores

Shelf extension as important module of the multichanneldepartment store

Enlarging product offering Increasing frequencyMore time for customers in the store

Online presence broadenedNew presences: Inno.be, Galeria.cn



The leading department store in Germany and Belgium

customer-driven, modern, innovative

Full alignment of the assortment with our target groups

Stronger localisation

Further modernisation of our department stores

Intensification and expansion of our omni-channel activities

Strengthening leadership for department stores in

Germany and Belgium

Further cost structure optimisation


AGENDA.



03 Strategic Update

04 Outlook 2014/15



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


AGENDA.



03 Strategic Update

04 Outlook 2014/15



METRO GROUP IN TRANSFORMATION.


THE TRANSFORMATION OF METRO GROUP.

2012 2013 2014 2015

Customer-centricSTRATEGY


Fokussierung - Portfolio Optimierung


Corporate culture, leadership culture, employee engagement

Modernisation of our business models

Stronger focus – Portfolio optimisation

2012 2013 2014 2015



Fokussierung - Portfolio Optimierung


Corporate culture, leadership culture, employee engagement

METRO Techstars ACCELERATOR

Business Innovation Strategy

Turnaround in LFL sales

Modernisation of our business models

Stronger focus – Portfolio optimisation

Sustainability

2012 2013 2014 2015

Debt reduction – Strengthening our balance sheet



INNOVATION IS A CORE ELEMENT OF OUR STRATEGY.


METRO GROUP – A PARTNER OFFERING MANY STRENGTHS FOR INNOVATORS.

100 million customers p.a.

80 million loyalty cards(METRO Card & Payback)

1.6 billion store visits, 900 million online visits

100 million customers p.a.

80 million loyalty cards(METRO Card & Payback)

1.6 billion store visits, 900 million online visits

2,200 stores with 13 million sqm sales floor

30 countries and > 60 websites and apps

> 2 billion direct marketing contacts

5,500 field staff in sales

2,200 stores with 13 million sqm sales floor

30 countries and > 60 websites and apps

> 2 billion direct marketing contacts

5,500 field staff in sales

~ €50 billion procurement volume

100% of the key suppliers in our product categories worldwide

~ €50 billion procurement volume

100% of the key suppliers in our product categories worldwide

Customer accessCustomer access Marketing / Sales PowerMarketing / Sales Power ProcurementProcurement


“BACK TO ATTACK” – WE DRIVE THE TRANSFORMATION.

OUR GOAL:Increasing added value added for all stakeholders of METRO GROUP

20 February 2015

ANNUAL GENERAL MEETING 2015

annual general meeting 2015media-saturn 20,981 -0.3% -0.9% 299 ~318 335 +17 real 8,432 -18.7% -0.8%...

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