Slide 1: FY 2017/18 Results Presentation
FY 2017/18 RESULTS PRESENTATION 13 December 2018
Slide 2: 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 pre
Slide 3: © METRO AG
5,3 4,6 3,6 78 71 1.370 100 120.000+ 6.000+ 454 3 13/12/2018 © METRO AG
Slide 4: % LfL Trader €bn delivery % LfL HoReCa
5.3 4.6 €bn delivery 3.6 % LfL HoReCa % LfL Trader 4 13/12/2018 © METRO AG
Slide 5: % LfL Trader €bn delivery % LfL HoReCa
5.3 4.6 €bn delivery 3.6 % LfL HoReCa 71 % LfL Trader 1,370 % FCF Conversion (continued) €m EBITDA (continued) 454 €m net income (continued) 5 13/12/2018 © METRO AG
Slide 6: €bn delivery % LfL HoReCa % LfL Trader
5.3 4.6 €bn delivery 3.6 % LfL HoReCa 71 % LfL Trader 1,370 78 100 % EEI % FCF Conversion (continued) €m EBITDA % Wholesale (continued) 120,000+ 6,000+ 454 Digital accounts Franchise Partner €m net income (continued) 6 13/12/2018 © METRO AG
Slide 7: Our Origin Is Wholesale
OUR ORIGIN IS WHOLESALE 2016/17 2017/18 2018/19 7 13/12/2018 © METRO AG
Slide 8: Objectives
OBJECTIVES 2017/ 2016/ 2017 2018 2018/ 2019 Transition Definition Accelerating Year of the demerger Becoming a pure wholesaler Next Generation Wholesale 8 13/12/2018 © METRO AG
Slide 9: Becoming a Modern Wholesaler
01 BECOMING A MODERN WHOLESALER 9 13/12/2018 © METRO AG
Slide 10: Key Facts in 2017/18
KEY FACTS IN 2017/18 Focus on wholesale as growth driver Adjusted guidance for FY 2017/18 well achieved Sales process for Real initiated 10 13/12/2018 © METRO AG
Slide 11: Adjusted Guidance for FY 2017/18 Well Achieved
ADJUSTED GUIDANCE FOR FY 2017/18 WELL ACHIEVED Like-for-like sales1 EBITDA1 0.7% Slightly above +1,2%3 0.5% >0.5% PY 1,4362 FY 16/17 actual FY 17/18 guidance FY 17/18 actual FY 16/17 actual FY 17/18 guidance FY 17/18 actual 1 At constant FX and before portfolio measures. 2 EBITDA 2016/17 of €1,611m
Slide 12: Focus on Wholesale Since 2012
FOCUS ON WHOLESALE SINCE 2012 Sales share (in %) 100 100 80 50 50 48 47 0 2012 2014 2015/16 2017/18 2019 Real Real Galeria Demerger Real Portfolio exit Eastern Europe Turkey Kaufhof CECONOMY Germany Strategic Classic Fine Foods Pro à Pro acquisitions Rungis Express in wholesale 12 13/12/2018 © METRO
Slide 13: Advantages Wholesale vs. Retail
ADVANTAGES WHOLESALE VS. RETAIL Large target groups Growth momentum with HoReCa Strong customer relationships Significant basket Higher share of loyal customers Higher productivity Cost efficiency Efficiency in investments Attractive data 13 13/12/2018 © METRO AG
Slide 14: Sustainable Growth in Like-for-Like Wholesale Sales
SUSTAINABLE GROWTH IN LIKE-FOR-LIKE WHOLESALE SALES +1.3% +1.0% 1 Like-for-like sales +0.9% +0.9% METRO Wholesale +0.6% 0,5 0 Financial year 2013/14 2014/15 2015/16 2016/17 2017/18 14 13/12/2018 © METRO AG
Slide 15: Real: Prerequisites for Independence
REAL: PREREQUISITES FOR INDEPENDENCE Competitive Commercial model Omni-channel business cost structure “Markthalle” concept Online marketplace RTG • Braunschweig reopened with sales • c. 90% GMV1 growth to c. €380m • Cooperation platform founded in April record • >5,000 merchants, >12m SKU2 2017 • 2
Slide 16: Financial Performance
02 FINANCIAL PERFORMANCE 16 13/12/2018 © METRO AG
Slide 17: Hypermarket (discontinued operations)
Hypermarket (discontinued operations) 17 13/12/2018 © METRO AG
Slide 18: Largest LfL Sales Growth Since 2008, Stable EBITDA Margin
LARGEST LFL SALES GROWTH SINCE 2008, STABLE EBITDA MARGIN €m / % FY 2017/181 Sales 29,476 Like-for-like growth 1.3% Reported growth -1.4% Growth in local currency 1.5% EBITDA 1,242 excl. RE gains In local currency 2.5% EBITDA margin 4.2% Real estate gains 128 Total EBITDA 1,370 1 Continued operation
Slide 19: Germany Grows, Western Europe Stable
GERMANY GROWS, WESTERN EUROPE STABLE METRO Wholesale Western Europe METRO Wholesale Germany (without Germany) €m / % FY 2017/18 €m / % FY 2017/18 Sales 4,7611 Sales 10,609 Like-for-like growth 0.9% Like-for-like growth -0.4% Reported growth 0.3% Reported growth 1.7% EBITDA excl. RE gains 91 EBITDA e
Slide 20: Eastern Europe Strong Growth; Russia Sales Decline
EASTERN EUROPE WITH STRONG GROWTH; RUSSIA WITH DECLINE IN SALES, BUT HIGH PROFITABILITY METRO Wholesale Eastern Europe (without Russia) METRO Wholesale Russia €m / % FY 2017/18 €m / % FY 2017/18 Sales 6,952 Sales 2,815 Like-for-like growth 6.1% Like-for-like growth -7.0% Reported growth 1.0% Reporte
Slide 21: Measures for Turnaround in Russia
MEASURES FOR TURNAROUND IN RUSSIA Management Commercial model Trader Franchise New executive team New pricing model Fasol • New Operating Partner • Roll-out of buy-more-pay-less • 1,000 Fasol stores of Franchise • New management team in all stores partners opened • Full strategic review • New price
Slide 22: METRO Asia With Further Like-for-Like Growth
METRO ASIA WITH FURTHER LIKE-FOR-LIKE GROWTH, INVESTMENT IN DIGITAL ACTIVITIES AND WAREHOUSE METRO Wholesale Asia Others1 €m / % FY 2017/18 €m / % FY 2017/18 Sales 4,298 Sales 41 Like-for-like growth 4.0% Reported growth -1.4% EBITDA excl. RE gains 162 EBITDA excl. RE gains -129 thereof FX -8 EBITDA
Slide 23: Strong EPS Growth, Dividend of 0.70€ per Share
STRONG EPS GROWTH DIVIDEND OF 0.70€ PER SHARE €m / % FY 2017/18 EBITDA 1,370 D&A -547 EBIT 823 Net financial result -130 EBT 693 Tax rate 33.9% Net income 454 Continued EPS in € 1.25 Discontinued EPS -0.30 Discontinued EPS pre -0.17 goodwill impairment Reported EPS in € 0.95 Reported EPS pre goodwil
Slide 24: Strategic Priorities: Wholesale
03 STRATEGIC PRIORITIES: WHOLESALE 24 13/12/2018 © METRO AG
Slide 25: We Have a Customer-Centered Purpose
WE HAVE A CUSTOMER-CENTERED PURPOSE 25 13/12/2018 © METRO AG
Slide 26: Tremendous Market Potential for HoReCa and Trader
TREMENDOUS MARKET POTENTIAL FOR HORECA AND TRADER Current customer structure in sales share Adressable market1 HoReCa Trader2 €1,225bn €1,000bn TRADER 21% HoReCa 45% SCO 34% 1 Source: Euromonitor for HoReCa and Trader market potential; Remark: HoReCa market at end consumer prices incl. VAT according
Slide 27: Growth Path for HoReCa
GROWTH PATH FOR HORECA Local business model combined with the Sales share: 45% strength of an international company LfL:+3.6% • Focus on clearly defined local target groups • Continuous analysis of customer preferences • Full authority in making commercial decisions • Customised assortments • Work r
Slide 28: Growth Path for Trader
GROWTH PATH FOR TRADER Strong profile of service offers and Sales share: 21% expansion of partnerships LfL:+4.6%1 • Focus on local requirements of Trader • Full authority in making commercial decisions • Customised assortments • Price leadership through high volume sales • Strong focus on cost effic
Slide 29: Next Generation Wholesale
NEXT GENERATION WHOLESALE STORE INNOVATION DELIVERY (FSD) DIGITALISATION FRANCHISE SME SERVICES E-COMMERCE 29 13/12/2018 © METRO AG
Slide 30: Delivery (FSD) Grows Profitable
DELIVERY (FSD) GROWS PROFITABLE Growth Successful development and further increase of sales share Efficiency Optimised processes enabled by technology and tools like the Driver App Acquisitions Strategic acquisitions of premium delivery services e.g. Classic Fine Foods, Pro à Pro and Rungis Express
Slide 31: DISH – The Platform for Extension
DISH – THE PLATFORM FOR EXTENSION Efficient channel for customer acquisition Turning METRO’s unique reach into a platform Established and strong relationships with SMEs Powerful reach 25 countries 24 million customers >60% in Germany & Western Europe 769 stores Digital Best 7,000+ sale
Slide 32: Digitalisation Strengthens the Relationship with HoReCa Customers
DIGITALISATION STRENGTHENS THE RELATIONSHIP WITH HORECA CUSTOMERS Digital solutions 120,000+ HoReCa customers are able to use our digital solutions. Until 2020 the Hospitality community should increase to more than 500,000 DISH members. Strengthening competitiveness HoReCa customers increase efficie
Slide 33: Franchise Supports Trader Customers
FRANCHISE SUPPORTS TRADER CUSTOMERS Growth Total +10% net sales growth compared to previous year Expansion 948 new store openings, already more than 6,000 stores in 2018 Strategic pillar Franchise concept supports independent businesses regarding the assortment and marketing 33 13/12/2018 © METRO AG
Slide 34: Attractiveness of Stores
ATTRACTIVENESS OF STORES Store revitalisation Several stores substantially remodelled for better service and customer experience In-store innovation Bringing smart, innovative and sustainable in-store solutions for professional customers New customer-centric formats Opened new store formats co-creat
Slide 35: Extending E-Commerce for B2B
EXTENDING E-COMMERCE FOR B2B METRO Markets HoReCa online-marketplace: launch in 2019. Transition of non-food offers from offline to online. M|SHOP Digital solution for all omni-channel customers. Already implemented in 13 METRO countries for FSD customers. Quick and cost efficient online ordering pr
Slide 36: © METRO AG
A PROFESSIONAL WHOLESALER OFFERING A WIDE VARIETY OF PRODUCTS AND SERVICES, EXPERT SOLUTIONS AND INNOVATIVE IDEAS WITH A SINGLE PURPOSE IN MIND: TO ENSURE OUR CUSTOMERS ACHIEVE SUCCESS IN THEIR BUSINESS. 36 13/12/2018 © METRO AG
Slide 37: © METRO AG
37 13/12/2018 © METRO AG
Slide 38: What We Build On
WHAT WE BUILD ON Employer Branding Sustainability 13th time in a row 4th time in a row industry leader in the group Food & Staples Retailing 9 METRO countries Sustainable procurement: global self- honoured commitment to reduce single-use plastics Rank 8 in the trendence Expansion: new store formats,
Slide 39: Real Estate: METRO Properties
04 REAL ESTATE: METRO PROPERTIES 39 13/12/2018 © METRO AG
Slide 40: Value Enhancement of Real Estate Portfolio
VALUE ENHANCEMENT OF REAL ESTATE PORTFOLIO Real estate ownership in 15 of METRO as developer of the 30 world‘s largest cities „micro“ locations (frequency / eco-system) ~15 new openings per year Develop & Invest manage Value Project development for value enhancement enhancement and real estate trans
Slide 41: Successful Real Estate Transactions
SUCCESSFUL REAL ESTATE TRANSACTIONS 2017/18 2018/19 and later Spain Germany India1 MEGA CITIES • Development followed by • Development • Development sale & lease back • EBITDA: ~€50m • EBITDA: ~€30m • EBITDA: ~€30m Shanghai, China Moscow, Russia Mumbai, India Istanbul, Turkey 1 Transaction shifted f
Slide 42: Outlook & Guidance
05 OUTLOOK & GUIDANCE 42 13/12/2018 © METRO AG
Slide 43: Outlook for 2018/19
OUTLOOK FOR 2018/19 Guidance1 FY 2017/18 FY 2018/19 Sales in local currency 1.5% 1-3% Like-for-like growth 1.3% 1-3% EBITDA excl. RE gains €1,242m 2-6% decrease 1 At constant FX and before portfolio measures. 43 13/12/2018 © METRO AG
Slide 44: Our Plan for 2018/19
OUR PLAN FOR 2018/19 Successful completion of selling the hypermarket business Trend improvement in Russia Consistent development of the international wholesale business with focus on HoReCa and Trader Extension of customer services, especially with digital solutions 44 13/12/2018 © METRO AG
Slide 45: Our Origin Is Wholesale, Wholesale Is Our Future
OUR ORIGIN IS WHOLESALE IS OUR FUTURE 2016/17 2017/18 2018/19 INTENSIFICATION 45 13/12/2018 © METRO AG
Slide 46: Q&A
Q&A Olaf Koch, CEO Christian Baier, CFO 46 13/12/2018 © METRO AG
Slide 47: Contact
CONTACT Corporate Communications METRO AG Metro-Straße 1 40235 Düsseldorf Germany T +49 211 6886-4252 F +49 211 6886-2001 E presse@metro.de www.metroag.de 47 13/12/2018 © METRO AG
Slide 48: © METRO AG
48 13/12/2018 © METRO AG