q1 2015/16 results presentation - bourse · pdf filemetro group, q1 2015/16 results...

Q1 2015/16

RESULTS PRESENTATION 11 February 2016

METRO GROUP, Q1 2015/16 Results Presentation

11 February 2016 | © METRO AG 2016 1

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 r isks 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, 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).



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 pull-

forward effects in Russia in PY, price investments and

repositioning of Redcoon

Initiatives to create customer value through digital services further

intensified

Q1

0.1

Q4

1.3

Q3

-0.4

Q2

2.7

Q1

2.3

2014/15 2015/16

Like-for-Like Sales Development in %

828

435209

-24

8912014/15 2015/16

EBIT in € million

Q1 Q2 Q3 Q4 Q1

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



• Austria

• Belgium

• Bulgaria

• China

• Croatia

• Czech Republic

• Hungary

• India

• Kazakhstan

• Netherlands

• Pakistan

• Russia

• Serbia

• Slovakia

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

Trader • Moldova

• Poland

• Romania

• Ukraine

Horeca • France

• Germany

• Italy

• Japan

• Portugal

• Spain

• Turkey

• Classic Fine

Foods

10%

42%

48%

Multispecialists

Trader

Horeca

Q1 2015/16 sales share

Multispecialists



EBIT Q1 2015/16 (BEFORE SPECIAL ITEMS) IMPACTED BY NEGATIVE

CURRENCY EFFECTS

891828

Q1 2015/16

~-40

Q1 2014/15 Q1 2014/15

(Comparable)

~851

Negative

FX Impact

in € million



Q1 2015/16: SALES AND EBIT BY DIVISION

10th consecutive quarter with LfL sales growth; EBIT adjusted for FX above PY, good development in in Germany, Italy, Spain, Turkey as well as Romania and Ukraine could compensate the expected slow down in Russia 6th 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

€ million

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

Δ

Q1 2015/16

vs Q1 2014/15

comparable

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: INCOME STATEMENT (EBIT TO EPS)

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%)

€ 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



Q1 2015/16: OTHER KEY FINANCIALS

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

€ million

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

Capex1 162 337 175

Number of new store openings 22 11 -11

1 adjusted for Galeria Kaufhof

Q1 2014/15



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

Q1

0.2

Q4

1.1

Q3

0.1

Q2

1.1

Q1

1.4

2014/15 2015/16


Q1 Q4

11.8

Q3

10.9

Q2

10.1

Q1

8.6 10.8

2014/15 2015/16

Delivery Sales Share in %



TECHSTARS METRO ACCELERATOR DEMO DAY IN BERLIN

1st 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



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



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



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

Q1

0.4

Q4

2.9

Q3

0.2

Q2

5.2

Q1

3.8

2014/15 2015/16


574415404436

512

Q3 Q2 Q1 Q1 Q4

2014/15 2015/16

Online Generated Sales in € million



MEDIA-SATURN’S TECH ACCELERATOR

The IT helpdesk for home users: Remote support service for PC / laptop users

(via hotline / shared screen)

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

First aid for smartphones: Online platform offering tutorials, spare-parts & local

repair services for defective mobile phones

The family doctor for technology: Certified technicians provide IT services at

home for all sorts of devices and IT problems

Four companies with strong service focus selected (Expertiger, DTB, Kaputt.de, Myhomeservice)

First pilot cooperations launched in selected Media-Saturn stores

Registration phase for 2nd accelerator batch already initiated; Start in summer 2016



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



-1.6

-3.7

1.1 0.9

-1.6

84

-36

5 35 83

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


2014/15 2015/16

Q1 Q2 Q3 Q4 Q1

EBIT Development in € million

2015/16 2014/15

Q1 Q2 Q3 Q4 Q1



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 >1,5111

Capex 1,411 ~2,0002

Number of new store openings 58 ~70

1Based on constant foreign exchange rates

275% going concern and 25% innovation and M&A



Q&A

Mark Frese

CFO

Olaf Koch CEO



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 2015/16 mainly positive portfolio measures from METRO Cash & Carry Vietnam

€ million

Q1 2014/15

Q1 2015/16

Portfolio Optimisation Measures 0 -427

Restructuring and Efficiency-

Enhancing Measures15 6

Goodwill-Impairments 0 0

Others 1 9

METRO GROUP 16 -412



STORES BY DIVISION AND COUNTRY

* Including 4 stores in the Others segment



SALES: RECENT QUARTERS ACCORDING TO THE NEW METRO CASH & CARRY

OPERATING MODEL

€ 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%

Q4 2014/15 12M 2014/15 Q1 2015/16Q1 2014/15 Q2 2014/15 Q3 2014/15

q1 2015/16 results presentation - bourse · pdf filemetro group, q1 2015/16 results...

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