Metro AG · VIE:MEO2

Metro — Kepler Cheuvreux 7th German Corporate Conference 2018

27 slides from Metro's conference presentation, Jan 17, 2018

  1. Slide 1: Presentation German Corporate Conference

    PRESENTATION GERMAN CORPORATE CONFERENCE 17 January 2018 1 01/17/2018 © METRO AG.

  2. Slide 2: Disclaimer

    DISCLAIMER 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 presentation

  3. Slide 3: Who We Are

    WHO WE ARE 3 01/17/2018 © METRO AG.

  4. Slide 4: A Strong International Wholesale Group (B2B)

    A STRONG INTERNATIONAL WHOLESALE GROUP (B2B) By operating segment By geography Wholesale (warehouse & foodservice) Wholesale (warehouse & foodservice) (B2B) (B2B) Asia 80% 91% 12% Western Europe (ex-Germany) Germany 28% (METRO Wholesale) 13% Germany (Real) 20% Eastern Food retail Europe Food retail

  5. Slide 5: Fully Focused on Customer Value and Completely Localised

    FULLY FOCUSED ON CUSTOMER VALUE AND COMPLETELY LOCALISED Customer centricity as core of our strategy Fully empowered group of B2B companies Wholesale FSD Source: Company information 5 01/17/2018 © METRO AG.

  6. Slide 6: Built on Strong Relationships and Recurring Revenues

    BUILT ON STRONG RELATIONSHIPS AND RECURRING REVENUES Strong proximity to our customers High sales share from recurring customers2 ~21m1 Others 26% Others 81% Recurring2 74% 74% Recurring2 19% 19% # of customers Sales Source: Company information; Note: data for FY ’15/16 for METRO Wholesale based on

  7. Slide 7: Well Founded on Highly Engaged Teams

    WELL FOUNDED ON HIGHLY ENGAGED TEAMS Strong focus on company culture Steady progress in employee engagement1 Employee engagement survey (%) +1,600bps 76.0 72.0 60.0 Industry average ~60%3 2011 2014 2017 2 Source: Company information, METRO WFS internal survey based on Aon Hewitt methodology 1 Employ

  8. Slide 8: Recent Performance and Key Topics

    RECENT PERFORMANCE AND KEY TOPICS 8 01/17/2018 © METRO AG.

  9. Slide 9: A Transition Year – A Year of Intensification

    A TRANSITION YEAR – A YEAR OF INTENSIFICATION A powerful international wholesale group § Customer value driven localised § Strong cash conversion § Strong B2B relationships & recurring revenues § Up-and-coming food lover retail concept § Significant growth potential substantiated § Sound balance she

  10. Slide 10: METRO Wholesale - Stationary Business

    METRO WHOLESALE - STATIONARY BUSINESS The underlying principle Implementation of value What drives like-for-like creation plans growth in FY 16/17? Employee engagement Horeca +4.1% index Net promoter Trader1: +5.7% score Food: +2.1% Sustainable like- for-like growth 1 Trader countries: Romania, Pola

  11. Slide 11: METRO Wholesale - Delivery

    METRO WHOLESALE - DELIVERY Required infrastructure Acquisitions integrated, Continued strong in place synergies being created growth leads to new ambition 647 out-of-store locations Minimum 20% of 21 depot-in-warehouse sales by 2020 60 depots 11 01/17/2018 © METRO AG.

  12. Slide 12: Digitization of the HoReCa Sector

    DIGITIZATION OF THE HORECA SECTOR Discovery Feasibility Scale 2013-2014 2015-2017 2018-onwards § Analysis of value creation § Support for the development of § Build the community opportunities through new digital solutions for the digital tools HoReCa sector in collaboration § Scale solutions with T

  13. Slide 13: Our Aim: Build the Largest Digital HoReCa Community

    OUR AIM: TO BUILD THE LARGEST DIGITAL HORECA COMMUNITY • A leading international player in wholesale • Become the largest digital Horeca and FSD with a presence in 35 countries community in the world • 21m buying customers • Clear target for activation of Digital SMEs • Significant customer REACH >6

  14. Slide 14: Real – Redefinition of Business Model

    REAL – REDEFINITION OF BUSINESS MODEL Combination of outstanding assortment diversity in food and fresh and high quality with stronger emphasis on service, experience and multichannel sales approach. Real Food Lover Krefeld Online • Significant sales growth in all product lines • Very large assortme

  15. Slide 15: Real Estate - Sustainable Value Creation

    REAL ESTATE - SUSTAINABLE VALUE CREATION Real estate is an integral part and enabler of our long-term strategy Project Development as key lever to deliver recurring benefits Project …strong …strongproject project development FY 2016/17 pipeline pipeline track record… Hongkou Chengdu § Defined list o

  16. Slide 16: A Year of Progress Towards Mid-Term Ambition

    A YEAR OF PROGRESS TOWARDS MID-TERM AMBITION Sales growth EBITDA margin2 Free Cash Flow (FCF)5 FY Reported: +1.6% Before SI3: 4.9% (PY 4.9%) ∆ EBITDA4 (rep.): +€138m vs PY FY Like-for-like: +0.5 % Reported: 4.3% (PY 5.2%; ∆ FCF: +€266m vs PY adj.4 4.0%) FY Delivery1: >25% FCF conversion: 56% (PY 43%

  17. Slide 17: Outlook for 2017/18

    OUTLOOK FOR 2017/18 FY 2016/17 FY 2017/18 Sales growth in local 1.1% ≥1.1% currency LfL growth 0.5% ≥0.5% Rep. EBITDA1 excl. real €1,436m2 c. 10% growth estate gains 1 At constant FX and before portfolio measures 2 Reported EBITDA 2016/17 of €1,611m less €175m of real estate gains 17 01/17/2018 © ME

  18. Slide 18: Strong Q1 Top-Line Performance

    STRONG Q1 TOP-LINE PERFORMANCE METRO METRO Wholesale Real Reported: +0.2% Reported: +0.6% Reported: -0.5% Rep. (local currency): 1.5% Rep. (local currency): 2.3% Like-for-like: +0.8% Like-for-like: +1.0% Like-for-like: +0.0% Supported by delivery and Germany (+2% like-for-like) Particularly driven b

  19. Slide 19: Events and Financial Calendar

    EVENTS AND FINANCIAL CALENDAR Upcoming events Q1 and Q2 2017/18 • 21 – 23 March 2018 – Analyst and investor trip to METRO Expo, Russia Financial calendar • 13 February 2018 – Q1 Quarterly Statement 2017/18 • 16 February 2018 – Annual General Meeting • 15 May 2018 – H1/Q2 Financial Report 2017/18 • 2

  20. Slide 20: Q&A

    Q&A 20 01/17/2018 © METRO AG.

  21. Slide 21: Backup

    BACKUP 21 01/17/2018 © METRO AG.

  22. Slide 22: Sales in FY – Acceleration of Growth Through Regional Improvement, Delivery and Online

    SALES IN FY – ACCELERATION OF GROWTH THROUGH REGIONAL IMPROVEMENT, DELIVERY AND ONLINE % FY 2015/16 FY 2016/17 Like-for-like growth • 0.5% LfL growth; increase driven by METRO Wholesale Like-for-like growth 0.2% 0.5% • traction in key customer groups Horeca and Trader METRO Wholesale 0.6% 0.9% • tra

  23. Slide 23: EBIT in FY – Real Estate and Currency Offset Decrease at Real

    EBIT IN FY – REAL ESTATE AND CURRENCY OFFSET DECREASE AT REAL €m / % FY 2015/16 FY 2016/17 EBIT and EBIT margin EBIT before SI 1,106 1,106 • EBIT in line with last year • Driven by FX support and higher real estate gains METRO Wholesale 1,048 1,114 • METRO Wholesale compensates decline in Real, caus

  24. Slide 24: EBIT to EPS in FY 2016/17

    EBIT TO EPS IN FY 2016/17 – IMPROVED NET FINANCIAL RESULT AND TAX RATE INCREASE EPS €m, before SI FY 2015/16 FY 2016/17 Net financial result • €88m year-on-year improvement driven in equal parts EBIT 1,106 1,106 by Interest and • lower financing costs -208 -166 investment result • improved other fin

  25. Slide 25: FCF in FY 2016/17 – Lower Restructuring, NWC and Capex Savings

    FCF IN FY 2016/17 – LOWER RESTRUCTURING, NWC AND CAPEX SAVINGS CAUSE FCF CONVERSION TO SOAR €m FY 2015/16 FY 2016/17 Lower special items increase reported EBITDA • METRO Wholesale: minor restructuring (€25m) EBITDA before SI 1,791 1,810 • Real: HQ restructuring costs Special items in • Others: €115m

  26. Slide 26: Contact

    CONTACT Investor Relations METRO AG Metro-Straße 1 40235 Düsseldorf Germany T +49 211 6886-1051 F +49 211 6886-490-3759 E investorrelations@metro.de www.metroag.de 26 01/17/2018 © METRO AG.

  27. Slide 27: © METRO AG.

    27 01/17/2018 © METRO AG.

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