Metro AG · VIE:MEO2
Metro — Q1 2020/21 Earnings Presentation
35 slides from Metro's earnings presentation, Feb 11, 2021
Slide 1: Q1 2020/21 Results Presentation
Q1 2020/21 RESULTS PRESENTATION 11 Feb 2021
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 pres
Slide 3: Presenting Today
PRESENTING TODAY Christian Baier Rafael Gasset CFO COO (ad interim) Co-CEO (ad interim) Co-CEO 3 02/11/2021
Slide 4: Q1 Update
Q1 UPDATE Teams Delivering best availability and relevant HoReCa solutions results in improved NPS Improved +6%pp Availability NPS for HoReCa Despite external challenges and +4%pp overall Market outperformance in key Western European markets Germany Italy Up to 7%pp Up to 4%pp Outperformance Outperf
Slide 5: Financial Update
01 FINANCIAL UPDATE 5 02/11/2021
Slide 6: Sales to EBITDA
SALES TO EBITDA €m / % Q1 2019/20 Q1 2020/21 Sales growth Total sales 7,548 6,337 • Sales development driven by mix of governmental restrictions and composition of customer sales Like-for-like growth 1.0% -11.3% • Strong December; Germany benefited from SCOs in run up Growth in local currency 1.0% -
Slide 7: Regional Sales Development
REGIONAL SALES DEVELOPMENT Customer split Q1 2020/21 Simplified view (rounded, in %, FY19/20)1 Total sales direction Customer sales development HoReCa Trader SCO Russia 14 % 31 % 55 % HoReCa: Trader: stable SCO: hard Eastern 31 % 33 % 36 % Europe development development in lockdowns with strongly im
Slide 8: Successful Customer Support Throughout Pandemic
SUCCESSFUL CUSTOMER SUPPORT THROUGHOUT PANDEMIC FY19/20 – first wave of FY20/21 – second wave of governmental restrictions governmental restrictions 3 1 Playbook from 1st lockdown: • High availability in stores LFL Sales -18% -11% All customer groups • Reduced min. order size in FSD • Regular contac
Slide 9: Restrictions Affect the Industry; METRO Continuously Performing Above Market
RESTRICTIONS AFFECT THE INDUSTRY; METRO IS CONTINUOUSLY PERFORMING ABOVE MARKET % METRO Germany % METRO France % METRO Italy CREST Panel Up to 7%p.p Up to 4%p.p Up to 4%p.p Q1 19/20 Q2 19/20 Q3 19/20 Q4 19/20 Q1 20/21 Q1 19/20 Q2 19/20 Q3 19/20 Q4 19/20 Q1 20/21 Q1 19/20 Q2 19/20 Q3 19/20 Q4 19/20 Q
Slide 10: Regional Performance
REGIONAL PERFORMANCE 1 HoReCa Trader SCO 1 1 42% 42% 60% Germany 13% 23% Western Europe 17% €m / % Q1 2020/21 €m / % Q1 2020/21 2,0% Sales 1,287 1,0% Sales 2,237 Growth in local currency -4.5% Q1 2019/20 Q1 2020/21 Growth in local currency -23.7% Reported growth -4.4% Reported growth -23.7% 2 Adj. E
Slide 11: EBITDA to EPS
EBITDA TO EPS €m Q1 2019/20 Q1 2020/21 EBIT Reported EBITDA 527 399 • Decrease in line with EBITDA decrease, stable depreciation D&A -200 -199 Net financial result • Improvement in the interest and investment result is mainly EBIT 327 200 due to lower interest from finance leases Interest and invest
Slide 12: FCF in Q1 2020/21
FCF IN Q1 2020/21 €m / % Q1 2019/20 Q1 2020/21 Leases • Improvement is due to lease income from Real, as well as Adj EBITDA1 526 376 lower lease payouts resulting from expired contracts Leases -129 -117 Change in NWC Adj EBITDA1 after leases 398 258 • Decline is driven by negative effects from COVID
Slide 13: Strategy Update
02 STRATEGY UPDATE 13 02/11/2021
Slide 14: Expanding our role to a 360° partner
Expanding our role from high quality products supplier to a 360° partner BY… Being lean and fast in adapting to the changes while capturing opportunities and consolidating markets and creating long-term value through our sustainability focus 14 02/11/2021
Slide 15: Focus on Lean Wholesale and Proactive Approach on Consolidation Opportunities
FOCUS ON LEAN WHOLESALE AND PROACTIVE APPROACH ON CONSOLIDATION OPPORTUNITIES Strengthening METRO’s IT capabilities and Acquisition of an FSD player Acquisition of 25% of FilProMer gaining efficiencies via strategic partnership Makro Spain METRO France €35 m >4,000 sales 2019 Customers nationwide Bu
Slide 16: Capturing and Seizing Opportunities
CAPTURING AND “SEIZING OPPORTUNITIES” “PROTECT” “PRESERVE” “ GROW” “Seize OPPORTUNITIES” Competitive environment Redefined commercial activities to better match to the new demand patterns Digital world ~50% of all orders1 in METRO are already online 1 Customer orders made through MSHOP for FY19/20 i
Slide 17: HoReCa: Preparing for the Restart
HORECA: PREPARING FOR THE RESTART #restartgastro #makroplus METRO Germany MAKRO Spain Makroplus: Customized Gaining market share through proposal based on mutual selected attack initiatives commitment Improved payment terms Developing long-term Discount for initial restocking relationships through h
Slide 18: Trader: Seizing Opportunity in Omnichannel
TRADER: SEIZING OPPORTUNITY IN OMNICHANNEL METRO Romania METRO Russia Trader Franchise Wholesale LaDoiPasi (LDP) - largest and Reducing COGS, improving fastest growing Convenience logistics and growing sales chain in Romania 1,382 +22% +3% Franchise partners in Trader SCO Dec’20 [+319 to PY] Total S
Slide 19: Expanding Our Role to a 360° Partner with Services and Solutions
EXPANDING OUR ROLE TO A 360° PARTNER WITH SERVICES AND SOLUTIONS Strategic initiative which METRO started ~8 years ago FINANCIAL SERVICES TO SUPPORT OUR Products CUSTOMERS Large hospitality base + historic shopping data results in the superior insights on credit scoring and limit calculations • METR
Slide 20: Expanding Our Role to a 360° Partner with Sustainability Expertise
EXPANDING OUR ROLE TO A 360° PARTNER WITH SUSTAINABILITY EXPERTISE Climate action Driving change Community involvement The CDP A-list rating Partnership in our value Global partnership with acknowledges METRO’s chain is a key driver of World Food Program ambition in its science- METRO’s engagement t
Slide 21: In a Nutshell
IN A NUTSHELL Good quarter as a result of extraordinary efforts of our teams. We have once again delivered high availability in stores and relevant solutions to support our customers Lean operations is a prerequisite for our business, while we increase our customer reach and relevance organically as
Slide 22: Q&A
Q&A Christian Baier Rafael Gasset CFO COO (ad interim) Co-CEO (ad interim) Co-CEO 22 02/11/2021
Slide 23: Events and Financial Calendar
EVENTS AND FINANCIAL CALENDAR Upcoming Financial events calendar 2020/21 30 Mar 2021 BofA Securities ESG 19 Feb 2021 AGM1 Consumer & Retail Con- 4 May 2021 Q2 2020/21 ference (Report: 6.30 pm) 31 Mar 2021 Jefferies Pan-European Mid-Cap Virtual 5 May 2021 Q2 2020/21 Conference (Call: 8.45 am) 1 Due t
Slide 24: Appendix
APPENDIX 24 02/11/2021
Slide 25: Rafael Gasset
RAFAEL GASSET Long-standing operational experience • More than 25 years of retail/wholesale experience, incl. CEO in Eastern Europe • Successful Operating Partner in turnaround cases such as Poland, Romania and Russia • Strong commercial orientation and turnaround track record with constant customer
Slide 26: Outlook FY 2020/21
OUTLOOK FY 2020/21 Guidance1 Additional comments • 1 month of full lockdown in country portfolio: sales loss of ~ €400 m or ~ 1.5% pp. to PY FY 2019/20 FY 2020/21 • High comparison basis for H1 FY20/21 with more favorable business environment from spring 2021 Sales slightly below growth in local -4.
Slide 27: Sales to EBITDA (1/3)
SALES TO EBITDA (1/3) METRO Germany METRO Western Europe €m / % Q1 2019/20 Q1 2020/21 €m / % Q1 2019/20 Q1 2020/21 Sales 1,347 1,287 Sales 2,932 2,237 Like-for-like growth -0.3% -4.5% Like-for-like growth 0.5% -23.7% Growth in local currency -0.4% -4.5% Growth in local currency 0.4% -23.7% Reported
Slide 28: Sales to EBITDA (2/3)
SALES TO EBITDA (2/3) METRO Russia METRO Eastern Europe €m / % Q1 2019/20 Q1 2020/21 €m / % Q1 2019/20 Q1 2020/21 Sales 821 677 Sales 1,975 1,728 Like-for-like growth -5.3% 6.6% Like-for-like growth 5.0% -3.5% Growth in local currency -4.9% 6.3% Growth in local currency 5.1% -3.5% Reported growth 2.
Slide 29: Sales to EBITDA (3/3)
SALES TO EBITDA (3/3) METRO Asia Others €m / % Q1 2019/20 Q1 2020/21 €m Q1 2019/20 Q1 2020/21 Sales 466 404 Sales 7 4 Like-for-like growth 3.2% -6.4% Growth in local currency 3.4% -5.2% Reported growth 5.2% -13.4% Adj. EBITDA1 27 33 Adj. EBITDA1 12 10 thereof FX -4 thereof FX -1 Transformation costs
Slide 30: Cash Flow Statement
CASH FLOW STATEMENT € million Q1 19/20 Q1 20/21 EBIT 327 200 Depreciation/amortisation/impairment losses/reversal of impairment losses of assets excl. financial investments 200 199 Change in provisions for post-employment benefits plans and other provisions -15 -9 Change in net working capital 47 -1
Slide 31: La Doi Pasi - Romania
LA DOI PASI - ROMANIA 31 02/11/2021
Slide 32: Fasol 2.0 - Russia
FASOL 2.0 - RUSSIA 32 02/11/2021
Slide 33: METRO Acquires Davigel and Strengthens Its Presence in Spain
30.12.2020 METRO ACQUIRES DAVIGEL AND STRENGTHENS ITS PRESENCE IN SPAIN Spain Davigel Spain is a well-established Food Service Distribution (FSD) Active market presence since 1980 company in Spain with a strong presence in the Canary and Balearic Islands € 1,033m 13% oS The company holds exclusive r
Slide 34: Contact
CONTACT Investor Relations METRO AG Metro-Straße 1 40235 Düsseldorf Germany T +49 211 6886-1280 F +49 211 6886-73-3759 E investorrelations@metro.de www.metroag.de 34 02/11/2021
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