Metro AG · VIE:MEO2
Metro — Berenberg/Goldman Sachs Eighth German Corporate Conference 2019
22 slides from Metro's conference presentation, Sep 23, 2019
Slide 1: Berenberg/Goldman Sachs Eighth German Corporate Conference
BERENBERG/GOLDMAN SACHS EIGHTH GERMAN CORPORATE CONFERENCE 23 September 2019
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Slide 3: The Transformation of METRO
THE TRANSFORMATION OF METRO 2011 2012-2017 2018 - 2019 § Diversified conglomerate § Re-design of business models § Decentralised authority § Driven by the centre § Decentralised authority § Active ownership § Steady expansion § Significant restructuring § Value creation principle § Built on standard
Slide 4: Repositioning as Omnichannel Wholesaler
REPOSITIONING AS OMNICHANNEL WHOLESALER Eastern Europe Denmark UK Egypt Turkey Greece Vietnam Portfolio rationalisation €37.3bn revenues disposed (mostly 2011 2019… B2C); €7bn in progress (Real) Diversification Gradual shift in capex allocation from large remodelings and NSOs Investments …to future-
Slide 5: The Final Chapter
THE FINAL CHAPTER TWO ONGOING TRANSACTIONS TO STRENGTHEN OUR FOCUS Real1 (signing expected in Autumn 2019) METRO China4 (decision in H2 2019) Investing in wholesale is more attractive. Real is only Partnering could realize significant value potential, enable synergetic to METRO Germany and does not
Slide 6: Rationale for Use of Proceeds
RATIONALE FOR USE OF PROCEEDS PRIORITY IS REINVESTING & MAXIMISING SHAREHOLDER RETURNS Capital allocation Additional cash sources2 Investment in business 1 Reshaping portfolio, accelerating organic growth and strategic M&A Goal: accelerate sales and drive sustainable EBITDA growth Returns to shareho
Slide 7: The Core of Our Strategy
THE CORE OF OUR STRATEGY 7 23/09/2019 © METRO AG | Berenberg & Goldman Sachs
Slide 8: © METRO AG | Berenberg & Goldman Sachs
8 23/09/2019 © METRO AG | Berenberg & Goldman Sachs
Slide 9: © METRO AG | Berenberg & Goldman Sachs
9 23/09/2019 © METRO AG | Berenberg & Goldman Sachs
Slide 10: Strong Sector & Customer Base
STRONG SECTOR & CUSTOMER BASE FAST GROWING AND FINANCIALLY ATTRACTIVE TARGET GROUPS Key market figures Key customer figures Market size and growth rates for European & Asian countries1 Average basket in EUR ~4m recurring2 customers deliver recurring sales 4,9% 4,8% 4,3% ~225 ~75% 4,0% ~20% ~20 CAGR
Slide 11: Customer Focus
CUSTOMER FOCUS Strategic Horeca Trader SCO Hotels, Restaurants & Caterers Independent grocery stores Service companies and offices as and other hospitality businesses such as well as wholesalers, kiosks and well as institutions typically small to as Cafes, Bars and Canteens convenience stores medium
Slide 12: Large Distribution Channels
LARGE DISTRIBUTION CHANNELS Expansion Warehouse Delivery Franchise Vast warehouse portfolio is the Attractive adjacency to warehouse Sizeable and growing convenience largest channel and ensures access business to extend service and store network pillared by long-term to recurring customer base attai
Slide 13: Decentralisation Drives Customer Focus
DECENTRALISATION DRIVES CUSTOMER FOCUS Decisive governance Increasingly efficient HQ NPS drives customer focus # MAG FTEs1,2 -25% Country operations >2.2m represented in decision ~1,125 Active in 25 customer making countries feedbacks Portfolio exits / Op. model Demerger Further ~850 potential >723,
Slide 14: Customer Focus Drives Growth
CUSTOMER FOCUS DRIVES GROWTH Higher customer focus… ….leads to higher growth rates 19,4% Horeca Trader1 8,7% +4.3% Lfl growth2 45%3 21%3 +4.5% LfL growth2 4,3% 4,5% 3,9% 2,3% (0,4%) 0,9% Restaurants, Traders, kiosks, cafés, caterers, mom-and-pop- 4 5 Retail METRO WS WS Best METRO METRO METRO METRO h
Slide 15: Holistic Digital Approach
HOLISTIC DIGITAL APPROACH DIGITALISATION STRATEGY BASED ON THREE MAIN PILLARS Core business Extension of business Ecosystem development Offering new store experiences Extending our trading business Building long-term relationships and redesigning processes for to digital, offering additional and wit
Slide 16: Core Business
CORE BUSINESS CUSTOMER-CENTRIC TRANSFORMATION OF OUR SYSTEMS Optimising the Digitalisation of shopping experience functions and existing and tightening the processes within the business partnerships group Modernising the IT Creating a digital infrastructure and interface for trading increasing the a
Slide 17: Extension of Business
EXTENSION OF BUSINESS CREATING THE LEADING MARKETPLACE FOR HORECA Significant Ideally suited enlargement for suppliers to of our offer reach new & range of services customers groups Extension of our Geographic customer base with expansion with platform accessible pan-european without METRO card mark
Slide 18: Ecosystem Development
ECOSYSTEM DEVELOPMENT DRIVING THE INNOVATION AND DIGITALISATION OF HORECA Access to technology Developing making digital base solutions solutions available to providing tools with independent Horeca immediate added value entrepreneurs for restaurateurs Reach Training and rendering third-party knowle
Slide 19: Challenges for Our Customers
CHALLENGES FOR OUR CUSTOMERS TOUGH COMPETITION & ENVIRONMENT WITH VERY LITTLE SUPPORT Rising industrial competition PLAYS Cost increase (labour, leases, etc.) AN IMPORTANT ROLE IN DRIVING LONG-TERM Intensified legislation & enforcement SUSTAINABILITY OF SMES AND HENCE PRESERVING Changing consumer de
Slide 20: Wholesale 360° Approach
WHOLESALE 360° APPROACH COMPREHENSIVE SOLUTION SUITE FOR RESTAURATEURS Allocation of spend in Hospitality SMEs Services and partnerships There is a significant amount of spend in Hospitality SMEs that METRO is leveraging the reach and the relationship with SMEs to so far was not addressed by METRO o
Slide 21: Wholesale: A Partner Like No Other
WHOLESALE A PARTNER LIKE NO OTHER 21 23/09/2019 © METRO AG | Berenberg & Goldman Sachs
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