Metro AG · VIE:MEO2

Metro — Q2 2023/24 Earnings Presentation

30 slides from Metro's earnings presentation, May 8, 2024

  1. Slide 1: Q2 2023/24 Results Presentation

    Q2 2023/24 RESULTS PRESENTATION 8 May 2024

  2. Slide 2: With You Today

    WITH YOU TODAY DR STEFFEN GREUBEL CHIEF EXECUTIVE OFFICER ERIC RIEGGER CHIEF FINANCIAL OFFICER 2 8 May 2024 © METRO AG. Q2 results 23/24

  3. Slide 3: sCore Drives Further Growth

    SCORE DRIVES FURTHER GROWTH VOLUME-DRIVEN GROWTH DURING DECREASE OF INFLATION STRATEGY IMPLEMENTATION FULLY IN LINE WITH PLAN FINANCIALS: SALES GROWTH, SEASONAL EFFECTS IN BOTTOM LINE FY GUIDANCE AND AMBITIONS CONFIRMED France, Nice, October 2022 3 8 May 2024 © METRO AG. Q2 results 23/24

  4. Slide 4: Inflation Decreases, Our Volume Grows

    INFLATION1 DECREASES, OUR VOLUME GROWS Monthly development vs. PY2 In % ACT Inflation1 ACT Inf. adj. growth 25 20 15 • Internal inflation decreases, 10 deflationary trends in some areas 5 0 • sCore drives volume growth -5 -10 -15 FY 22/23 FY 23/24 Czech Republik, October 2023 1 Total inflation NSP b

  5. Slide 5: Operating Business Develops Well

    OPERATING BUSINESS DEVELOPS WELL Sales growth1 Adj. EBITDA (reported vs. PY in %) (abs. in € m) 500 404 8 6 6 300 4 4 2 100 73 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 FY 22/23 FY 23/24 FY 22/23 FY 23/24 1 At constant currency 5 8 May 2024 © METRO AG. Q2 results 23/24

  6. Slide 6: Multichannel Growth in Line with sCore

    MULTICHANNEL GROWTH IN LINE WITH SCORE Growth stores: +4% sales1 Growth FSD: +18% sales1 +7%1 Roll-out METRO MARKETS: +45% sales1 DISH: +~8 k new subscribers2 1 Figures Q2 23/24 FY vs Q2 PY (at constant currency, portfolio adj). 2 In Q2 23/24 selective FY 6 8 May 2024 © METRO AG. Q2 results 23/24

  7. Slide 7: Infrastructure Transformation on Track

    INFRASTRUCTURE TRANSFORMATION ON TRACK SALES FORCE: TRANSFORMATION PROJECTS: +>470 (March vs. Sept) +81 incl. 5 depots GERMANY Magdeburg WEST Paris Savigny EAST (depot) 3 new depots Almaty (depot) 2 OoS projects: Nis, Novi Sad 1 Selective Q2 2023/24 7 8 May 2024 © METRO AG. Q2 results 23/24

  8. Slide 8: FSD and Digital Make Further Progress

    FSD AND DIGITAL MAKE FURTHER PROGRESS FSD sales share (%) Digital sales share (%) 24 15 22 10 20 5 3M 6M 9M 12M 3M 6M 3M 6M 9M 12M 3M 6M FY 22/23 FY 23/24 FY 22/23 FY 23/24 Advanced countries 8 8 May 2024 © METRO AG. Q2 results 23/24

  9. Slide 9: Strategic Initiatives Fully in Focus

    STRATEGIC INITIATIVES FULLY IN FOCUS Own Brand Strategic customers sales share (%) sales share (%) 23 75 22 70 21 20 65 3M 6M 9M 12M 3M 6M 3M 6M 9M 12M 3M 6M FY 22/23 FY 23/24 FY 22/23 FY 23/24 Advanced countries 9 8 May 2024 © METRO AG. Q2 results 23/24

  10. Slide 10: Wholesale Transformation Drives Growth

    WHOLESALE TRANSFORMATION DRIVES GROWTH STORE MULTICHANNEL VOLUME REPOSITIONING ADVANTAGES GROWTH 10 8 May 2024 © METRO AG. Q2 results 23/24

  11. Slide 11: Our Growth Ambitions Confirmed

    OUR GROWTH AMBITIONS CONFIRMED GROWTH TARGET AMBITION (FY22-30) 2030 SALES +5-10% CAGR >€40 bn EBITDA +5-7% CAGR >€2 bn FREE CASH FLOW >€0.6 bn Targets based comparison vs FY 20/21 11 8 May 2024 © METRO AG. Q2 results 23/24

  12. Slide 12: Financial Performance

    ic “i ive wh Snes FINANCIAL PERFORMANCE ee! Saar aap

  13. Slide 13: What I Have Seen So Far

    WHAT I HAVE SEEN SO FAR 13 8 May 2024 © METRO AG. Q2 results 23/24

  14. Slide 14: One METRO - One Finance

    ONE METRO - ONE FINANCE Accelerate digital transformation in finance Increase use of shared service center with standardization & automation Continuous development of talent within finance to steer sCore Cost leadership at the core to embrace wholesale efficiency within finance and across METRO 14 8

  15. Slide 15: Q2 Stable Growth in Line with Plan

    Q2 STABLE GROWTH Total sales growth1 Inflation adjusted IN LINE WITH PLAN growth1 +7% +4% Adj. EBITDA2 (€ m) EPS (€)3 73 -0.53 (PY: 111) (PY: -0.29) FCF (€ m) Net debt (€ m) -673 3,567 (PY: -837) (PY: 3,791) Czech Republic, October 2023 1 At constant currency, portfolio-adjusted. 2 Adj. EBITDA - EBI

  16. Slide 16: Sales Growth Driven by All Regions

    SALES GROWTH DRIVEN BY ALL REGIONS SALES GROWTH ADJ. EBITDA2 Δ to PY1 Q2 Δ to PY1 Q2 +7% €-26 m PORTF. ADJ. +4% €6,898 m €-33 m €73 m +2% €1,100 m GERMANY €-3 m €-12 m +2% €2,837m WEST +€9 m €69 m +13% €545 m RUSSIA €-1 m €18 m +4% €2,355 m EAST +€9 m €55 m +27% €60 m OTHERS €-46 m €-56 m 1 At const

  17. Slide 17: EPS Driven by Seasonality

    EPS DRIVEN BY SEASONALITY Q2 €m 22/23 23/24 EBITDA Adj. EBITDA 111 73 thereof FX -5 • Δ Adj. EBITDA mostly due to expiry of license fee (Wumei), other post-transaction effects in PY Adj. EBITDA margin 1.6% 1.1% • Negative FX effect mainly from TR, RU Transformation gains 2 8 Real estate gains 0 2 EB

  18. Slide 18: Improved NWC Drives FCF Improvement

    IMPROVED NWC DRIVES FCF IMPROVEMENT Q2 23/24 (€ m) Δ1(€ m) EBITDA2 84 -30 OPERATING CASH FLOW NWC -326 • Δ NWC decrease: Q2 seasonality, improvement vs. PY, +119 continuing focus on operational efficiency needed Other OCF -147 +104 • Δ Other OCF: combination of several effects like e.g. OCF -390 +19

  19. Slide 19: Re-financing with Attractive Conditions

    RE-FINANCING WITH ATTRACTIVE CONDITIONS Debt maturity profile as of 07/03/2024 • We used favorable capital market environment: • €500 m bond for 5 years, coupon 4.625% • Bank of America, ING, DZ Bank, Intesa San Paolo • Secondary market performance very good • Prove of attractiveness of conditions •

  20. Slide 20: FY23/24: Outlook Reiterated

    FY23/24: OUTLOOK REITERATED DRIVE MARKET SHARE PRODUCTIVITY GAINS GAINS & COST INFLATION Sales growth 3-7% Δ Adj. EBITDA €-100 to +50 m NORMALIZATION OF D&A, NET CONTINUING GROWTH LEASE PORTFOLIO EXTENSION FINANCIAL RESULT, TAXES INVESTMENTS EPS ~0 Slightly negative FCF Increase in net debt 20 8 May

  21. Slide 21: Q&A

    Q&A DR STEFFEN GREUBEL CHIEF EXECUTIVE OFFICER ERIC RIEGGER CHIEF FINANCIAL OFFICER 21 8 May 2024 © METRO AG. Q2 results 23/24

  22. Slide 22: Events and Financial Calendar

    EVENTS AND FINANCIAL CALENDAR UPCOMING EVENTS 15 May 24 Schutzgemeinschaft der Kapitalanleger e.V. (SdK) virtually 28 May 2024 Deutsche Schutzvereinigung für Wertpapierbesitz e. V. (DSW) Cologne, Germany 06 Jun 24 Erste Group Conference virtually FINANCIAL CALENDAR 23/24 14 Aug 24 9M/Q3 2023/24 (15

  23. Slide 23: mPulse

    MPULSE Topics and background – from wholesale and from the world of our customers PRINT MAGAZINE ONLINE www.mpulse.de ➢ Connects sCore strategy with proof ➢ Systematically stories and customer benefits focusing on professional customers – across all channels ➢ Regularly updated with exciting stories

  24. Slide 24: Contact

    CONTACT METRO AG METRO AG Investor Relations Corporate Communications Metro-Straße 1 Metro-Straße 1 40235 Düsseldorf, Germany 40235 Düsseldorf T +49 211 6886-4252 F +49 211 6886-73-3759 F +49 211 6886-2001 E investorrelations@metro.de E presse@metro.de W www.metroag.de W www.metroag.de 24 8 May 2024

  25. Slide 25: Portfolio Adjusted Guidance Basis

    PORTFOLIO ADJUSTED GUIDANCE BASIS 22/23: reporting 22/23: guidance 23/24: guidance Exits1 r JP/MM, BE excl. r JP/MM, BE, IN excl. r JP/MM, BE, IN excl. Japan and Myanmar Belgium ✔ IN incl. India Acquisitions2 Davigel3 ✔ incl. since consolidation ✔ incl. since consolidation ✔ incl. since consolidatio

  26. Slide 26: Free Cash Flow Details

    FREE CASH FLOW DETAILS € million Q2 22/23 Q2 23/24 EBIT -95 -134 Depreciation/amortisation/impairment losses/reversal of impairment losses of 209 218 fixed assets excl. financial investments Change in provisions for pensions and other provisions -59 -24 Change in net working capital -446 -326 Paid (

  27. Slide 27: Segments: Sales to EBITDA (1/3)

    SEGMENTS: SALES TO EBITDA 1/3 Germany West €m / % Q2 22/23 Q2 23/24 €m / % Q2 22/23 Q2 23/24 Sales 1,078 1,100 Sales 2,769 2,837 Growth in local currency 8.7% 2.0% Growth in local currency 9.4% 2.4% Reported growth 8.7% 2.0% Reported growth 9.4% 2.5% Adj. EBITDA -10 -12 Adj. EBITDA 59 69 thereof FX

  28. Slide 28: Segments: Sales to EBITDA (2/3)

    SEGMENTS: SALES TO EBITDA 2/3 Russia East €m / % Q2 22/23 Q2 23/24 €m / % Q2 22/23 Q2 23/24 Sales 571 545 Sales 2,432 2,355 Growth in local currency -14.4% 13.4% Growth in local currency 21.0% 4.1% Reported growth -0.7% -4.6% Reported growth 14.4% -3.1% Adj. EBITDA 20 18 Adj. EBITDA 50 55 thereof FX

  29. Slide 29: Segments: Sales to EBITDA (3/3)

    SEGMENTS: SALES TO EBITDA 3/3 Others METRO €m Q2 22/23 Q2 23/24 €m / % Q2 22/23 Q2 23/24 Sales 47 60 Sales 6,897 6,898 Growth in local currency 27.4% Growth in local currency 10.5% 3.9% Reported growth 27.4% Reported growth 10.4% 0.0% Adj. EBITDA -10 -56 Adj. EBITDA 111 73 thereof FX thereof FX -5 A

  30. Slide 30: Disclaimer and Notes

    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 estimates, expectations and assumptions at the time of publication of this pres

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