Metro AG · VIE:MEO2

Metro — Q1 2023/24 Earnings Presentation

27 slides from Metro's earnings presentation, Feb 7, 2024

  1. Slide 1: Q1 2023/24 Results Presentation

    Q1 2023/24 RESULTS PRESENTATION 7 February 2024

  2. Slide 2: With you today

    WITH YOU TODAY DR STEFFEN GREUBEL CHIEF EXECUTIVE OFFICER ERIC RIEGGER CHIEF FINANCIAL OFFICER 2 7 February 2024 © METRO AG. Q1 results 23/24

  3. Slide 3: Good start in Q1

    GOOD START IN Q1 BUSINESS ENVIRONMENT SCORE IMPLEMENTATION MULTICHANNEL GROWTH FINANCIAL PERFORMANCE Bulgaria, December 2023 3 7 February 2024 © METRO AG. Q1 results 23/24

  4. Slide 4: Business environment Q1

    BUSINESS ENVIRONMENT Q1 Inflation decrease, HoReCa sector EU: Improving slight deflationary suffers from personal consumer sentiment effects by METRO DE shortage Czech Republik, October 2023 4 7 February 2024 © METRO AG. Q1 results 23/24

  5. Slide 5: Growth driven by all regions

    GROWTH DRIVEN BY ALL REGIONS SALES GROWTH ADJ. EBITDA2 Δ to PY1 Q1 Δ to PY1 Q1 +9% €-22 m PORTF. ADJ. +6% €8,115 m €-25 m €404 m 1 At constant currency. 2 Adj. EBITDA - EBITDA pre transformation costs, real estate gains. 5 7 February 2024 © METRO AG. Q1 results 23/24

  6. Slide 6: Growth driven by all regions

    GROWTH DRIVEN BY ALL REGIONS SALES GROWTH ADJ. EBITDA2 Δ to PY1 Q1 Δ to PY1 Q1 +9% €-22 m PORTF. ADJ. +6% €8,115 m €-25 m €404 m +3% €1,389 m GERMANY €-19 m €66 m +6% €3,339 m WEST +€7 m €179 m +20% €684 m RUSSIA +€6 m €44 m +5% €2,644 m EAST +€9 m €140 m +16% €59 m OTHERS €-23 m €-24 m 1 At constan

  7. Slide 7: What we promised: sCore progress continues

    WHAT WE sCORE PROGRESS PROMISED CONTINUES Q1 PY Q1 CY 2030 Sales force (FTE) +>200 +>270 +6,500 Depots/OoS (new/transformation) - +131 invest FSD share (% sales) 20 23 >33 Digital share (% sales) 8 12 40 Own brand share (% sales) 20 22 >35 Strategic customers (% sales) 68 71 >80 1 13 executed networ

  8. Slide 8: Broad network investments to fuel growth…

    BROAD NETWORK INVESTMENTS TO FUEL GROWTH… GERMANY Nienburg Karlsruhe Hamburg-Altona WEST Palmela Liezen EAST Budapest IV Pitesti CFF new depots (4) and reallocation (2) 8 7 February 2024 © METRO AG. Q1 results 23/24

  9. Slide 9: …and drive productivity (Makro PL)

    …AND DRIVE PRODUCTIVITY (MAKRO PL) PRODUCTIVITY DEVELOPMENT1 Q1 vs. PY  total +8%  mainly by in-store +11% 1 Inflation adjusted. Only Makro PL. Calculated like sales divided by number of FTEs. 9 7 February 2024 © METRO AG. Q1 results 23/24

  10. Slide 10: Multichannel growth in line with sCore

    MULTICHANNEL GROWTH IN LINE WITH SCORE Roll-out METRO MARKETS: +62% sales1 MULTICHANNEL CUSTOMERS1,2: +40% overall triple-digit growth ES, IT, PT DUOCHANNEL CUSTOMERS1,2: +13% DISH: +~6 k new subscribers3 Growth stores: Growth FSD: +5% sales1 +24% sales1 1 Figures Q1 23/24 FY vs Q1 PY (at constant c

  11. Slide 11: How we win multichannel customers

    HOW WE WIN MULTICHANNEL CUSTOMERS One face to the customer  Sales force collaboration  Marketing materials  Trade fairs Promote multichannel offering  Coordinated kick-back program  Cross-channel voucher program  QR codes in store linking to METRO MARKETS Germany, Düsseldorf, 2023 11 7 Februar

  12. Slide 12: DISH POS roll-out progresses

    DISH POS ROLL-OUT PROGRESSES • Launch in Italy: smooth start in Nov’ 23 • Next country: Spain. Full coverage of EU Big-4-HoReCa markets • POS acquisition: PY +>2.600, Q1 +~1.100 • Strong commercial bundles: 60% of new DE POS customers use hardware subsidy incremental sales commitment of >€8m p.a. I

  13. Slide 13: FSD specialist Fisk Idag acquisition

    FSD SPECIALIST FISK IDAG ACQUISITION • Signed 20 Dec 2023 Bolt–on acquisition by METRO's Swedish • Swedish fish specialist, unique elaborated products FSD specialist JHB • ~500 customers nationwide • Own logistics in Gothenburg JHB serving ~4.000 hospitality customers in Sweden, Finland • ~€24m sale

  14. Slide 14: EPS decrease mainly due to special effects in PY

    EPS DECREASE MAINLY DUE TO SPECIAL EFFECTS IN PY Q1 €m 22/23 23/24 EBITDA Adj. EBITDA 465 404 • Δ Adj. EBITDA mostly due to expiry of license fee thereof FX -36 (Wumei) in PY and transformation in DE Adj. EBITDA margin 5.7% 5.0% • Negative FX effect mainly from RU, TR Transformation gains 1 3 • Real

  15. Slide 15: Positive FCF & material net debt reduction

    POSITIVE FCF & MATERIAL NET DEBT REDUCTION Q1 23/24 (€ m) Δ1(€m) EBITDA2 436 -237 OPERATING CASH FLOW NWC -22 +124 • NWC improvement vs. cyber-effected PY • Δ Other OCF: mainly reclassification of real estate in PY Other OCF -128 +256 OCF 286 +143 INVESTMENTS/DIVESTMENTS Investments -158 +4 • Higher

  16. Slide 16: 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 16 7 Feb

  17. Slide 17: 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 17 7 February 2024 © METRO AG. Q1 results 23/24

  18. Slide 18: Q&A

    Q&A DR STEFFEN GREUBEL CHIEF EXECUTIVE OFFICER MICHAEL BOUSCHELJONG SENIOR VICE PRESIDENT FINANCE 18 7 February 2024 © METRO AG. Q1 results 23/24

  19. Slide 19: Events and financial calendar

    EVENTS AND FINANCIAL CALENDAR UPCOMING EVENTS 8 Feb 24 Montega Hamburger Investorentage – Hamburg FINANCIAL CALENDAR 23/24 7 May 24 6M/Q2 2023/24 (8 May Analyst & Press Call) 14 Aug 24 9M/Q3 2023/24 (15 Aug Analyst & Press Call) 19 7 February 2024 © METRO AG. Q1 results 23/24

  20. Slide 20: MPULSE

    MPULSE Topics and background – from wholesale and from the world of our customers PRINT MAGAZINE ONLINE www.mpulse.de  Systematically focusing on professional customers – across all  Connects sCore with proof channels stories and customer benefits  Advantages of the  Topics: own brand supplier,

  21. Slide 21: Contact

    CONTACT METRO AG METRO AG Investor Relations Corporate Communications Metro-Straße 1 Metro-Straße 1 40235 Düsseldorf, Germany 40235 Düsseldorf T +49 211 6886-1280 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.metr

  22. Slide 22: Portfolio adjusted guidance basis

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

  23. Slide 23: Free cash flow details

    FREE CASH FLOW DETAILS € million Q1 22/23 Q1 23/24 EBIT 464 227 Depreciation/amortisation/impairment losses/reversal of impairment losses of fixed 209 209 assets excl. financial investments Change in provisions for pensions and other provisions -8 -23 Change in net working capital -146 -22 Paid (-)

  24. Slide 24: Segments: Sales to EBITDA 1/3

    SEGMENTS: SALES TO EBITDA 1/3 Germany West €m / % Q1 22/23 Q1 23/24 €m / % Q1 22/23 Q1 23/24 Sales 1,343 1,389 Sales 3,162 3,339 Growth in local currency 3.5% 3.4% Growth in local currency 3.9% 5.6% Reported growth 3.6% 3.4% Reported growth 3.9% 5.6% Adj. EBITDA 84 66 Adj. EBITDA 173 179 thereof FX

  25. Slide 25: Segments: Sales to EBITDA 2/3

    SEGMENTS: SALES TO EBITDA 2/3 Russia East €m / % Q1 22/23 Q1 23/24 €m / % Q1 22/23 Q1 23/24 Sales 888 684 Sales 2,663 2,644 Growth in local currency -14.1% 19.9% Growth in local currency 15.0% 5.2% Reported growth 11.3% -22.9% Reported growth 8.9% -0.7% Adj. EBITDA 60 44 Adj. EBITDA 146 140 thereof

  26. Slide 26: Segments: Sales to EBITDA 3/3

    SEGMENTS: SALES TO EBITDA 3/3 Others METRO €m / % Q1 22/23 Q1 23/24 €m / % Q1 22/23 Q1 23/24 Sales 51 59 Sales 8,107 8,115 Growth in local currency 16.0% Growth in local currency 5.2% 6.2% Reported growth 16.0% Reported growth 6.6% 0.1% Adj. EBITDA -2 -24 Adj. EBITDA 465 404 thereof FX 0 thereof FX

  27. Slide 27: 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

Metro — Q1 2023/24 Earnings Presentation on 6ix