Metro AG · VIE:MEO2
Metro — Investor Day (January 2022)
98 slides from Metro's investor day presentation, Jan 26, 2022
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY 26/01/2022 1
Slide 2: Disclaimer and notes
Disclaimer and notes By accessing this presentation, you agree to the following restrictions: This document and the presentation to which it relates is intended for information only, does not constitute a prospectus or similar document and shall not be treated as investment advice. This information
Slide 3: Our Ambition
OUR AMBITION STEFFEN GREUBEL CHIEF EXECUTIVE OFFICER 3 © METRO AG.
Slide 4: Steffen Greubel, Chief Executive Officer
STEFFEN GREUBEL CHIEF EXECUTIVE OFFICER 4 26/01/2022. © METRO AG. Capital Markets Day.
Slide 5: Today…
TODAY… GROWTH OPPORTUNITIES STRONG ASSETS MULTICHANNEL MODEL PASSIONATE TEAMS EVIDENCE MARKET SHARE GAINS 5 26/01/2022. © METRO AG. Capital Markets Day.
Slide 6: © METRO AG. Capital Markets Day.
6 26/01/2022. © METRO AG. Capital Markets Day.
Slide 7: Our key values
OUR KEY VALUES PEOPLE PARTNERSHIP SUSTAINABILITY 7 26/01/2022. © METRO AG. Capital Markets Day.
Slide 8: Growing, fragmented markets
GROWING, FRAGMENTED MARKETS OUT-OF-HOME CONSUMPTION €1 TRN MARKET TOP 3 LESS THAN 5% CAGR 30% SHARE GROWING HIGH MARKETS1 FRAGMENTATION2 1 Sources: Oxford Economics, January 2022. CAGR 2010-2019. 2 Own analysis based on company publications and local market sources (GIRA, Alimarket, GV-Markt (Nielse
Slide 9: Dedicated team – strong infrastructure
DEDICATED TEAM – STRONG INFRASTRUCTURE Customers >17 million Employees Countries 34 >95,000 Sales Sales Force €24.8 billion 6,500 employees EBITDA 681 Stores €1.2 billion All figures for FY20/21 9 26/01/2022. © METRO AG. Capital Markets Day.
Slide 10: Unique customer access
UNIQUE CUSTOMER ACCESS DAILY >125k STORE VISITS REACH ~50k SALES FORCE CONTACTS ~80% ~30k DELIVERY DROPS OF MARKET ~20k UNIQUE M|SHOP VISITS All figures for FY18/19 10 26/01/2022. © METRO AG. Capital Markets Day.
Slide 11: Opportunity to do more
OPPORTUNITY TO DO MORE ~5-10% ~20% ~5% MARKET DELIVERY DIGITAL SHARE1 SALES SALES SHARE2 SHARE2 1 Own estimates based on HoReCa market date. 2 FY20/21. 11 26/01/2022. © METRO AG. Capital Markets Day.
Slide 12: What our customers tell us
WHAT OUR CUSTOMERS TELL US WHOLESALE ASSORTMENT PRESENCE 12 26/01/2022. © METRO AG. Capital Markets Day.
Slide 13: Multichannel business model
MULTICHANNEL BUSINESS MODEL 13 26/01/2022. © METRO AG. Capital Markets Day.
Slide 14: Reposition stores
REPOSITION STORES Wholesale GROß- Stores HANDELSMÄRKTE OUT-OF- Out-of- STORE Store 14 26/01/2022. © METRO AG. Capital Markets Day.
Slide 15: Grow FSD
GROW FSD Wholesale GROß- Stores HANDELSMÄRKTE FSD OUT-OF- Out-of- STORE Store 15 26/01/2022. © METRO AG. Capital Markets Day.
Slide 16: Roll-out online marketplace
ROLL-OUT ONLINE MARKETPLACE Marketplace Wholesale GROß- Stores FSD HANDELSMÄRKTE OUT-OF- Out-of- STORE Store 16 26/01/2022. © METRO AG. Capital Markets Day.
Slide 17: Digitalise operations
DIGITALISE OPERATIONS Marketplace Customer Customer Online App App Ordering Wholesale GROß- Stores FSD HANDELSMÄRKTE OUT-OF- Out-of- STORE Store 17 26/01/2022. © METRO AG. Capital Markets Day.
Slide 18: Drive loyalty
DRIVE LOYALTY Marketplace Customer Online App Ordering DIGITAL SOLUTIONS FOR CUSTOMERS Wholesale GROß- Stores FSD HANDELSMÄRKTE OUT-OF- Out-of- STORE Store 18 26/01/2022. © METRO AG. Capital Markets Day.
Slide 19: Accelerate growth: 2030 goals
ACCELERATE GROWTH 2030 GOALS >€3bn Marketplace Marketplace sales Customer Online ~1.2x App Ordering >3x DIGITAL STORES sales SOLUTIONS FOR Wholesale CUSTOMERS Stores FSD FSD sales Out-of- Store Multiples in comparison to FY20/21. 19 26/01/2022. © METRO AG. Capital Markets Day.
Slide 20: A new business profile by 2030
A NEW BUSINESS PROFILE BY 2030 >80% 40% BALANCED STRATEGIC DIGITAL2 EBITDA CUSTOMERS1 CONTRIBUTION Top 4 Rest Countries 1 Share of HoReCa and Trader (statistical) sales in overall (statistical) Wholesale sales ex Metro Markets and service companies; statistical sales excl. petrol and restaurants in
Slide 21: Shaping the growth trajectory
SHAPING THE GROWTH TRAJECTORY INVEST (FY22-25) 2030 AMBITION SALES +3-5% CAGR >€40bn EBITDA +3-5% CAGR >€2bn CASH INV (% SALES) <2.5% <1.5% FREE CASH FLOW re-invest into growth >€0.6bn NET DEBT / EBITDA decrease to ~2.5x <2.5x At constant FX, constant portfolio 21 26/01/2022 © METRO AG. Capital Mark
Slide 22: Why we will succeed
WHY WE WILL SUCCEED PAST INVESTMENTS EVIDENCE FOCUS 22 26/01/2022. © METRO AG. Capital Markets Day.
Slide 23: © METRO AG. Capital Markets Day.
23 26/01/2022. © METRO AG. Capital Markets Day.
Slide 24: Agenda
AGENDA LOCAL STRATEGY FOUNDATION SCALING GLOBALLY THE POWER OF DIGITAL CONNECTION --- 15 MIN BREAK --- ACCELERATING DIGITAL BUSINESS GROWING WITH RESPONSIBILITY FINANCIAL FRAMEWORK FOR GROWTH TO SUM IT UP Q&A 24 26/01/2022. © METRO AG. Capital Markets Day.
Slide 25: Local strategy foundation
LOCAL STRATEGY FOUNDATION RAFAEL GASSET CHIEF OPERATING OFFICER © METRO AG.
Slide 26: Rafael Gasset, Chief Operating Officer
RAFAEL GASSET CHIEF OPERATING OFFICER 26 26/01/2022. © METRO AG. Capital Markets Day.
Slide 27: Strong infrastructure to leverage
STRONG INFRASTRUCTURE TO LEVERAGE PORTFOLIO GERMANY 102 STORES O/W 68 OOS 7 DEPOTS 681 STORES RUSSIA 93 + 563 stores with STORES WEST O/W 80 OOS OUT-OF-STORE- DELIVERY 240 EAST STORES O/W 207 OOS 31 DEPOTS 246 67 dedicated STORES O/W 208 OOS FSD DEPOTS 29 DEPOTS All data FY20/21 incl. JP/MY.. 27 26/
Slide 28: 3 learnings
3 LEARNINGS WHOLESALE AND EFFICIENCY FOCUS LEVERAGE THE ASSETS PROFESSIONALISE RELATIONS 28 26/01/2022. © METRO AG. Capital Markets Day.
Slide 29: Increased customer value with wholesale focus
INCREASED CUSTOMER VALUE WITH WHOLESALE FOCUS ROMANIA INCREASE VALUE FOR CUSTOMERS 29 26/01/2022. © METRO AG. Capital Markets Day.
Slide 30: Increased customer value with wholesale focus
INCREASED CUSTOMER VALUE WITH WHOLESALE FOCUS ROMANIA INCREASE VALUE FOR CUSTOMERS 13% 50% +27% 11% productivity CAGR of sales on customer total sales1 (5yrs./sales per FTE1) pallet satisfaction CAGR (5yrs.) (NPS2) 1 Figures for FY15/16-FY20/21. 2 Figures for FY18/19-FY20/21. 30 26/01/2022. © METRO
Slide 31: FSD – exploiting the opportunity
FSD – EXPLOITING THE OPPORTUNITY DIFFERENT MODELS EXISTING ASSETS SWEATING + STORE + OUT-OF-STORE-DELIVERY NEW ASSETS BUILDING STANDALONE FSD DEPOTS 31 26/01/2022. © METRO AG. Capital Market Day
Slide 32: FSD – exploiting the opportunity
FSD – EXPLOITING THE OPPORTUNITY DIFFERENT MODELS EXISTING ASSETS SWEATING + STORE + OUT-OF-STORE-DELIVERY ITALY, FSD DEPOT MILANO 2.800 customers NEW ASSETS BUILDING STANDALONE 134.000 deliveries x €500 avg. invoice break-even FSD DEPOTS within 2 years = €67m total sales1 1 Figures for FY18/19. 2 F
Slide 33: Professionalize relationships with customers
PROFESSIONALIZE RELATIONSHIPS WITH CUSTOMERS #MAKROPLUS Spain CONTRACTUAL LOYALTY PROGRAM 15k contracts €37m lock-in sales +143% sales growth +77pp vs. non lock-in sales growth Figures Nov. selective FY 21/22. 33 26/01/2022. © METRO AG. Capital Markets Day.
Slide 34: Acceleration across countries started
ACCELERATION ACROSS COUNTRIES STARTED HIGHER CUSTOMER SALES 1st PLACE MARKET SHARE SATISFACTION RECORD GAINS FRANCE Horeca market: GERMANY Highest June sale ever total sales, food, non-food Q1 Q4 and delivery FY19/20 FY20/21 ROMANIA NPS1 Best month ever in December total sales & highest daily +8pp f
Slide 35: Ready to scale
READY TO SCALE IMPLEMENTATION WITH LOCAL ADAPTATION Marketplace Customer Online STRONG TEAMS App Ordering DIGITAL SOLUTIONS KNOWLEDGE SHARING FOR Wholesale CUSTOMERS FSD Stores INTERNATIONAL PROOF Out-of- Store OF CONCEPT 35 26/01/2022. © METRO AG. Capital Markets Day.
Slide 36: Scaling globally
SCALING GLOBALLY CLAUDE SARRAILH CHIEF CUSTOMER & MERCHANDISE OFFICER 36 © METRO AG.
Slide 37: Claude Sarrailh, Chief Customer & Merchandise Officer
CLAUDE SARRAILH CHIEF CUSTOMER & MERCHANDISE OFFICER 37 26/01/2022. © METRO AG. Capital Markets Day.
Slide 38: Transforming customer reach into sales
TRANSFORMING CUSTOMER REACH INTO SALES #1 CUSTOMER CHOICE #2 RELEVANT OFFER #3 MULTICHANNEL NETWORK #4 CUSTOMER ACTIVATION Capital Markets Day. 26/01/2022. 38 © METRO AG.
Slide 39: Deliberate choice of our strategic customers
DELIBERATE CHOICE OF OUR STRATEGIC CUSTOMERS RELEVANT CHANNEL / >80% STRATEGIC MULTICHANNEL CUSTOMERS 2030 Ambition. 39 26/01/2022. © METRO AG. Capital Markets Day.
Slide 40: Active channel choice
ACTIVE CHANNEL CHOICE TROLLEY A TROLLEY B 40 26/01/2022. © METRO AG. Capital Markets Day.
Slide 41: Active channel choice
ACTIVE CHANNEL CHOICE TROLLEY A TROLLEY B €400 €400 Sales Sales €105 €105 Gross margin Gross margin 41 26/01/2022. © METRO AG. Capital Markets Day.
Slide 42: Active channel choice
ACTIVE CHANNEL CHOICE 82 kg 373 kg TROLLEY A TROLLEY B €400 €400 Sales Sales €105 €105 Gross margin Gross margin 42 26/01/2022. © METRO AG. Capital Markets Day.
Slide 43: Active channel choice
ACTIVE CHANNEL CHOICE 82 kg 373 kg TROLLEY A TROLLEY B €400 €400 Sales €49 Sales €0 Cash margin Cash margin €105 €105 Gross margin FSD Gross margin FSD 43 26/01/2022. © METRO AG. Capital Markets Day.
Slide 44: Active channel choice
ACTIVE CHANNEL CHOICE 82 kg 373 kg TROLLEY A TROLLEY B €400 €400 Sales €49 Sales €0 €66 Cash margin Cash margin Cash margin €105 €105 Gross margin FSD Gross margin FSD Store 44 26/01/2022. © METRO AG. Capital Markets Day.
Slide 45: From complex to relevant and competitive
FROM COMPLEX TO RELEVANT AND COMPETITIVE TODAY TOMORROW ~75k SKUs 30-40% SKUs REDUCTION ~17% OWN 35% BRAND SHARE OWN BRAND SHARE 2030 Ambition. 45 26/01/2022. © METRO AG. Capital Markets Day. Av. SKUs per store
Slide 46: And implemented in METRO Austria
AND IMPLEMENTED IN METRO AUSTRIA -228 56% +2pp BRANDED OWN BRAND OWN BRAND SKUS SHARE INCOME VS. OTHER BRANDS Figures for FY20/21, category Frozen. 46 26/01/2022. © METRO AG. Capital Markets Day.
Slide 47: From store to multichannel fulfillment centre
FROM STORE TO MULTICHANNEL FULFILLMENT CENTRE A Assets evolution B Network optimisation Out Of Store NF From FD FD NF FD 681 stores 47 26/01/2022 © METRO AG. Capital Markets Day. FD: Food NF: Non Food
Slide 48: Customer specific front line to scale sales
CUSTOMER SPECIFIC FRONT LINE TO SCALE SALES MARKETING ACTIVE KEY ACCOUNT AUTOMATION SELLING DEVELOPMENT Sales force KAM Back Service Service Web office 48 26/01/2022. © METRO AG. Capital Markets Day.
Slide 49: New operating model to scale fast
NEW OPERATING MODEL TO SCALE FAST CCMO COO Proven successes New Strengthened CUSTOMER PROCUREMENT NETWORK & & & SALES ASSORTMENT SUPPLY CHAIN Strengthened CHANNELS MANAGEMENT SCALE 49 26/01/2022. © METRO AG. Capital Markets Day.
Slide 50: The power of digital connection
THE POWER OF DIGITAL CONNECTION TIMO SALZSIEDER CHIEF INFORMATION OFFICER METRO AG 50 © METRO AG.
Slide 51: Timo Salzsieder, Chief Information Officer
TIMO SALZSIEDER CHIEF INFORMATION OFFICER 51 26/01/2022. © METRO AG. Capital Markets Day.
Slide 52: More than 2,000 FTE across countries
More than >2,000 FTE across 4 countries Modern agile, cloud based software development factory STRONG PARTNER NETWORK 52 26/01/2022. © METRO AG. Capital Markets Day.
Slide 53: Data and technology powers METRO
Marketplace DATA AND TECHNOLOGY Customer Online App Ordering DIGITAL POWERS METRO SOLUTIONS FOR Wholesale CUSTOMERS FSD Stores Out-of- Store 53 26/01/2022 © METRO AG. Capital Markets Day.
Slide 54: Data driven customer touchpoints
DATA DRIVEN CUSTOMER TOUCHPOINTS Orders +18% Conversion Conversion personalized offers 70% +47% Customer base App users +29% All figures for fiscal year 2021 compared to previous year +100% 54 26/01/2022. © METRO AG. Capital Markets Day.
Slide 55: Tech drives quality and efficiency
TECH DRIVES QUALITY AND EFFICIENCY REALTIME DATA SCIENCE PRECISE IMPROVE AUGMENTED DELIVERY ROUTE DELIVERY DEPOT REALITY TRACKING OPTIMIZATION WINDOW EFFICIENCY INNOVATION cooperation with 55 26/01/2022. © METRO AG. Capital Markets Day.
Slide 56: Customer experience and productivity
CUSTOMER EXPERIENCE AND PRODUCTIVITY Processing time1 -40% Productivity1 +15% E-invoice in 8 countries Customer first 1 Figures for FY20/21 vs FY 19/20. 56 26/01/2022. © METRO AG. Capital Markets Day.
Slide 57: Store innovation
STORE INNOVATION 57 26/01/2022. © METRO AG. Capital Markets Day.
Slide 58: Customer experience, productivity, data, innovation
Customer Productivity Data Innovation Experience 58 26/01/2022. © METRO AG. Capital Markets Day.
Slide 59: Accelerating digital business
ACCELERATING DIGITAL BUSINESS MATTHIAS BUEHLER CHIEF MARKETING OFFICER METRO MARKETS © METRO AG.
Slide 60: Matthias Bühler, CMO METRO Markets
MATTHIAS BÜHLER CHIEF MARKETING OFFICER METRO MARKETS 60 26/01/2022. © METRO AG. Capital Markets Day.
Slide 61: Accelerate e-commerce
ACCELERATE E-COMMERCE Marketplace Customer Online App Ordering DIGITAL SOLUTIONS FOR CUSTOMERS Wholesale GROß- Stores FSD HANDELSMÄRKTE OUT-OF- Out-of- STORE Store 61 26/01/2022. © METRO AG. Capital Markets Day.
Slide 62: Four realities
FOUR REALITIES 1 BE WHERE CUSTOMERS ARE 2 PLATFORM ECONOMY 3 LINES BETWEEN B2C & B2B GET BLURRY 4 B2B BIGGEST E-COMMERCE GROWTH AREA 62 26/01/2022. © METRO AG. Capital Markets Day.
Slide 63: E-commerce: how we are succeeding
E-COMMERCE: HOW WE ARE SUCCEEDING PLATFORM- PAN- B2B NON-FOOD 360° BASED MODEL EUROPEAN LONGTAIL MARKETING 63 26/01/2022. © METRO AG. Capital Markets Day.
Slide 64: Promising results
PROMISING RESULTS B2B E-COMMERCE • B2B Average Order Value is 2-3x > than B2C E-Com ATTRACTIVE • B2B Return rate is ~50% < than B2C E-Com • First full year YoY growth1 ~250% GROWTH MOMENTUM • First quarter 2021/22 ~300% YoY growth • Already strong seller sales share2 of ~50% 1 Platform Sales FY19/20
Slide 65: Expansion potential
EXPANSION POTENTIAL OPERATIONAL 2 markets live EXCELLENCE (Germany and Spain) CUSTOMER GROUPS Italy & Portugal planned for 2022 Core GEOGRAPHICAL 2-3 countries p.a. MODEL thereafter Ambition: €3bn Market- ASSORTMENT place sales by 2030 & REVENUE EBITDA break-even by STREAMS 2026 65 26/01/2022. © MET
Slide 66: Drive loyalty
DRIVE LOYALTY Marketplace Customer Online App Ordering DIGITAL DIGITAL SOLUTIONS SOLUTIONS FOR FOR CUSTOMERS CUSTOMERS Wholesale GROß- Stores FSD HANDELSMÄRKTE OUT-OF- Out-of- STORE Store 66 26/01/2022. © METRO AG. Capital Markets Day.
Slide 67: Two value creation levers
TWO VALUE CREATION LEVERS PAID SUBSCRIPTION DISH ORDER COLLECT, REFINE, MONETISE DATA BUNDLES 67 26/01/2022. © METRO AG. Capital Markets Day.
Slide 68: Promising momentum for roll-out
PROMISING MOMENTUM FOR ROLL-OUT DIGITAL TOOLS 240k+ LOYALTY to METRO 22.4k+ REGISTRATIONS1 BUNDLE SUBSCRIPTIONS2 FOR CUSTOMER FOR METRO BUSINESS DATA BASE SUCCESS 16 HD END-CUSTOMER 12m+ COUNTRIES INTERACTION DINERS SEATED3 1 Registered establishments since launch in 2017 incl. all digital tools and
Slide 69: Growing with responsibility
GROWING WITH RESPONSIBILITY VERONIKA POUNTCHEVA GLOBAL DIRECTOR CORPORATE RESPONSIBILITY 69 © METRO AG.
Slide 70: Veronika Pountcheva, Global Director Corporate Responsibility
VERONIKA POUNTCHEVA GLOBAL DIRECTOR CORPORATE RESPONSIBILITY 70 26/01/2022. © METRO AG. Capital Markets Day.
Slide 71: Our key values
OUR KEY VALUES PEOPLE PARTNERSHIP SUSTAINABILITY 71 26/01/2022. © METRO AG. Capital Markets Day.
Slide 72: Employees are our basis for success
EMPLOYEES ARE OUR BASIS FOR SUCCESS 90 80 70 60 50 40 30 20 10 0 Aug 19 Engagement Score eNPS Nov 21 1 eNPS = employee net promoter score 72 26.01.2022. © METRO AG. Capital Markets Day.
Slide 73: Recognition
RECOGNITION AA 17.4 pts Constant rating since 5 Low Risk: included in top years 10% of industry group A- 77 pts Committed for over 10 8 years consistent years (climate leadership score) 73 26.01.2022. © METRO AG. Capital Markets Day.
Slide 74: 3 priorities for a sustainable future
3 PRIORITIES FOR A SUSTAINABLE FUTURE CLIMATE NEUTRALITY ASSORTMENT FOOD WASTE 74 26.01.2022. © METRO AG. Capital Markets Day.
Slide 75: Priority #1: Climate neutrality
PRIORITY #1: CLIMATE NEUTRALITY COMMITMENT PROGRESS 2040 climate neutral STARTING in own operations POINT -37.3% CO2 emissions -15% in Scope 3 in 2020/21 376kg €1.5bn CAPEX of CO2/m² selling and committed delivery space in 2011 75 26.01.2022. © METRO AG. Capital Markets Day.
Slide 76: Key actions for climate neutrality
KEY ACTIONS FOR CLIMATE NEUTRALITY 2040 Company Cooling Fossil Photovol- New 2011 Energy car fleet systems heat taic stores climate- saving electrifi- replacing phasing expansion with zero- neutral cation F-GAS out emission FOREST PLASTIC POSITIVE REGIONAL FREE 76 26.01.2022. © METRO AG. Capital Mar
Slide 77: Priority #2: Sustainable assortment
PRIORITY #2: SUSTAINABLE ASSORTMENT 603 41 Mio products with less sugar / salt plastic bottles saved by / saturated fatty acids METRO Plastic Initiative since 2021 COMMITMENT PROGRESS STARTING 1,500 more sustainable own brand products POINT 1,047 reformulated or new own brand products, PACKAGING: -1
Slide 78: Priority #3: Reducing food waste
PRIORITY #3: REDUCING FOOD WASTE SOURCE: ©togoodtogo +34% 200k rise in food donations meals saved with Too Good to Go since 2017/18 (equal to 500t of CO2) COMMITMENT PROGRESS STARTING -50% in own operations until 2025 POINT -27% food waste per m2 sales area 14,1kg/m2 (0.014 t/sqm) of selling space i
Slide 79: Accelerate growth sustainably
ACCELERATE GROWTH SUSTAINABLY INVEST IN GROW CLIMATE COLLECTIVE INCREASE NEUTRALITY ACTION CIRCULARITY 79 26/01/2022. © METRO AG. Capital Markets Day.
Slide 80: Financial framework for growth
FINANCIAL FRAMEWORK FOR GROWTH CHRISTIAN BAIER CHIEF FINANCIAL OFFICER 80 © METRO AG.
Slide 81: Christian Baier, Chief Financial Officer
CHRISTIAN BAIER CHIEF FINANCIAL OFFICER 81 26/01/2022 © METRO AG. Capital Markets Day.
Slide 82: Fully focused on wholesale
FULLY FOCUSED ON WHOLESALE Eastern Europe Denmark Japan Egypt Greece Vietnam China FOCUS UK Turkey Myanmar PORTFOLIO 2011 2021… ON METRO €8bn €2.7bn HEALTHY BALANCE SHEET RETURN DELEVERAGE TO DIVIDENDS1 & INVESTMENT GRADE €3.5bn NET DEBT1 RATING 1 Deleverage and dividends since 2012. 82 26/01/2022 ©
Slide 83: Asset base for growth
ASSET BASE FOR GROWTH METRO Companion GERMANY 102 681 67 STORES WEST FSD DEPOTS 240 EAST RUSSIA 246 93 All data FY20/21 incl. JP/MY. 83 26/01/2022. © METRO AG. Capital Markets Day.
Slide 84: Moving to wholesale and multichannel
MOVING TO WHOLESALE AND MULTICHANNEL CUSTOMER SHARE MULTICHANNEL EFFECT1 66% ~1.2x Strategic customers 1.15x 2012 2013 2015 2017 FY18/19 FY20/21 HORECA TRADER NON-STRATEGIC 65% Strategic CHANNEL SHARE customers 1x METRO3X 17%0.1% MARKETS FSD sales Market- share place sales Single Dual Multi- 2012 20
Slide 85: Proven growth potential
PROVEN GROWTH POTENTIAL SALES VS PPY (PRE-COVID) 8% above PPY on average 8 quarters with market share gains1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 20/21 21/22 1 Source: NPD Group CREST Panel. Countries included France, Spain, Italy, Germany and Russia (largest 8 cities Moscow (incl Moscow
Slide 86: FY 21/22: Momentum continues
FY 21/22: MOMENTUM CONTINUES FY 21/22: 3-7% SALES GROWTH STEADY COVID FY 21/22: STABLE EBITDA Q1 21/22: SALES EXCEED 19/20 2025 2020 2022 Sales JAN 22: SALES TREND: +22% MTD At constant FX, constant portfolio 86 26/01/2022 © METRO AG. Capital Markets Day.
Slide 87: Temporarily higher growth investments
TEMPORARILY HIGHER GROWTH INVESTMENTS ~€100m p.a. TECHNOLOGY ROLL-OUT MARKETPLACE DIGITALISE OPERATIONS ~2x GROWTH CASH INVESTMENTS ~€200m TO ~€400M p.a. p.a. NETWORK FAST PAYBACK SMALL INDIVIDUAL INVESTMENTS GROWTH INFRASTRUCTURE TOTAL: UP TO 2.5% OF SALES ~€100m p.a. SUSTAINABILITY CLIMATE NEUTRAL
Slide 88: Intense acceleration phase ahead
INTENSE ACCELERATION PHASE AHEAD schematic SCALING INVESTMENT STEADY COVID 2020 2022 2025 SALES 88 26/01/2022 © METRO AG. Capital Markets Day.
Slide 89: Intense acceleration phase ahead
INTENSE ACCELERATION PHASE AHEAD schematic SCALING INVESTMENT STEADY COVID 2020 2022 2025 SALES EBITDA 89 26/01/2022 © METRO AG. Capital Markets Day.
Slide 90: Intense acceleration phase ahead
INTENSE ACCELERATION PHASE AHEAD schematic SCALING INVESTMENT STEADY COVID 2020 2022 2025 SALES EBITDA FREE CASH FLOW 90 26/01/2022 © METRO AG. Capital Markets Day.
Slide 91: Reposition stores
REPOSITION STORES € SALES % INCOME SPACE REALLOCATION FOCUS ON STRATEGIC CUSTOMERS % PRODUCTIVITY WHOLESALE PRICING € EBITDA FOCUSED SIMPLER ASSORTMENT PROCESSES 91 26/01/2022 © METRO AG. Capital Markets Day.
Slide 92: Drive FSD growth
DRIVE FSD GROWTH € SALES % INCOME FOCUSED VALUE PROPOSITION SPACE EXPANSION % PRODUCTIVITY € EBITDA OWN BRAND SALES FORCE ACCESS NEW EXPANSION CUSTOMERS 92 26/01/2022 © METRO AG. Capital Markets Day.
Slide 93: Scale marketplace
SCALE MARKETPLACE € SALES % INCOME % PRODUCTIVITY EBITDA BREAK- EVEN IN 2026 TECHNOLOGY € EBITDA IMPROVEMENTS COUNTRY NON-FOOD ROLL-OUT SHELF (2-3 p.a.) EXTENSION 93 26/01/2022 © METRO AG. Capital Markets Day.
Slide 94: Measuring progress
MEASURING PROGRESS #1 COMMERCIAL #2 FINANCIAL GROW WHOLESALE SALES SALES GROWTH SALES • NPS strategic customers • Total sales (not LFL sales) • Strategic customers • Own brand EBITDA EBITDA: GROW MULTICHANNEL SIMPLE • Adjusted for Real Estate • FSD sales & CLEAR gains and portfolio measures • Digita
Slide 95: Shaping the growth trajectory
SHAPING THE GROWTH TRAJECTORY INVEST (FY22-25) 2030 AMBITION SALES +3-5% CAGR >€40bn EBITDA +3-5% CAGR >€2bn CASH INV (% SALES) <2.5% <1.5% FREE CASH FLOW re-invest into growth >€0.6bn NET DEBT / EBITDA decrease to ~2.5x <2.5x At constant FX, constant portfolio 95 26/01/2022 © METRO AG. Capital Mark
Slide 96: Capital allocation
CAPITAL ALLOCATION REINVEST FOR GROWTH #1 UNTIL 24/25 <2.5% OF SALES, THEN GRADUALLY TO <1.5% DELEVER THROUGH EBITDA GROWTH #2 TARGET RATIO: 2.5x NET DEBT/EBITDA RETURN CASH TO SHAREHOLDERS #3 DIVIDEND 45-55% OF EPS 96 26/01/2022 © METRO AG. Capital Markets Day.
Slide 97: To sum it up
TO SUM IT UP STEFFEN GREUBEL CHIEF EXECUTIVE OFFICER 97 © METRO AG.
Slide 98: Q&A
Q&A 98 © METRO AG.