Metro AG · VIE:MEO2
Metro — Q1 2022/23 Earnings Presentation
30 slides from Metro's earnings presentation, Feb 9, 2023
Slide 1: Q1 2022/23 Results Presentation
Q1 2022/23 RESULTS PRESENTATION 9 February 2023
Slide 2: With you today
Bitte Design WITH YOU TODAY und Fotos vom CMD WITH YOU TODAY DR STEFFEN GREUBEL CHRISTIANChristian Dr. Steffen Greubel BAIER Baier CHIEF EXECUTIVE OFFICER CEO CFO CHIEF FINANCIAL OFFICER 2 9 Feb 2023 © METRO AG. Q1 2022/23
Slide 3: sCore execution leads to further growth
SCORE EXECUTION LEADS TO FURTHER GROWTH 1. BUSINESS ENVIRONMENT EASES 2. GROWTH MOMENTUM CONTINUES 3. CYBERATTACK TEMPORARILY IMPACTS PERFORMANCE IN Q1 4. SCORE EXECUTION PROGRESSES 5. Q1 MATCHES FY OUTLOOK Spain, Barcelona, October 2022 3 9 Feb 2023 © METRO AG. Q1 2022/23
Slide 4: Business environment eases
BUSINESS ENVIRONMENT EASES FOOD HORECA RESILIENT INFLATION CHALLENGE: HORECA SLOWLY STAFF SECTOR COMING DOWN SHORTAGE Germany, Karlsruhe, October 2022 4 9 Feb 2023 © METRO AG. Q1 2022/23
Slide 5: Growth momentum continues
GROWTH MOMENTUM CONTINUES Q1 EFFECT Q1 REPORTED JANUARY CYBERATTACK Low triple SALES GROWTH 7% ~16% digit €m Mid to high Δ ADJ. EBITDA €-56m double digit €m Figures vs. Q1 PY; January vs January PY. France, Nice, October 2022 5 9 Feb 2023 © METRO AG. Q1 2022/23
Slide 6: All channels drive growth
ALL CHANNELS DRIVE GROWTH Transformation stores: +4% sales1 Grow FSD: +18% sales1 METRO Companion +7% GERMANY 102 Roll-out METRO Markets: +46% sales1 WEST 233 Hospitality Digital: EAST RUSSIA 2023 93 +~13k new subscribers2 1 Figures vs FY 21/22. Reported view. 2 Incl. Eijsink subscribers, figures ar
Slide 7: sCore progress continues
SCORE PROGRESS CONTINUES PY1 CY2 2030 Sales force (new FTE) +>250 +>200 +6,500 Strategic customer (% sales) 65 68 >80 FSD sales share (% sales3) 18 20 >33 Digital sales share (% sales) 7 8 40 Own brand (% sales) 17 20 >35 Depots/OoS (new locations) 6 0 Investments 1 Q1 figures FY 2021/22 excl. JP, M
Slide 8: DISH POS for HoReCa: roll-out France
DISH POS FOR HORECA: ROLL-OUT FRANCE • Mar ’22: acquisition of Eijsink with cloud- based POS system for HoReCa in NL • Rationale: roll-out into HoReCa customer base • Roll-out plan: 2-3 countries p.a. • Status: France market entry at Sirha fair in Jan ’23 • Next country: Germany France, Lyon, Januar
Slide 9: Sale of METRO India (signed)
SALE OF METRO INDIA (SIGNED) METRO INDIA FACTS TRANSACTION • Sales FY 21/221: €926 m • Buyer: Reliance Retail Ventures • EBITDA FY 21/221: low double-digit €m • Timing: signed Dec ‘22, closing expected in H1 2023 (calendar year) • # of locations: 31 stores, 21 Indian cities • Valuation: 0.6x EV/sale
Slide 10: Here we go!
HERE WE GO! INVEST (FY 22-25) 2030 Germany, Karlsruhe, October 2022 -UPDATED IN DEC- AMBITION SALES +5-10% CAGR >€40 bn EBITDA +5-7% CAGR >€2 bn FREE CASH FLOW re-invest into growth >€0.6 bn 10 9 Feb 2023 © METRO AG. Q1 2022/23
Slide 11: Q1 Financial Performance
FINANCIAL PERFORMANCE = - —
Slide 12: Stable growth momentum
STABLE GROWTH Total sales growth1 Cyberattack impact MOMENTUM on sales (€m) Low 5% triple-digit Adj. EBITDA2 (€m) Cyberattack impact on adj. EBITDA (€m) 465 Mid to high (PY: 521) double-digit Real estate gain EPS (€)3 (€m) 207 1.44 (PY: 0.54) France, Nice, October 2022 1 At constant currency. 2 Adj.
Slide 13: Strong segments, partially impacted by cyberattack
STRONG SEGMENTS, PARTIALLY IMPACTED BY CYBERATTACK Sales Adj. EBITDA2 Δ to PY1 Q1 Δ to PY1 Q1 +5% €8,107 m €-68 m €465 m +4% €1,343 m GERMANY +€1 m €84 m +4% €3,162 m WEST €-30 m €173 m -14% €888 m RUSSIA €-45 m €60 m +15% €2,663 m EAST +€18 m €146 m €51 m OTHERS €-17 m €-2 m 1 At constant currency.
Slide 14: Market outperformance continues
MARKET OUTPERFORMANCE CONTINUES ITALY SPAIN %-change vs. FY 18/19 %-change vs. FY 18/19 40 40 20 20 0 0 -20 -20 -40 -40 -60 -60 -80 -80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY19/20 FY20/21 FY21/22 FY22/23 FY19/20 FY20/21 FY21/22 FY22/23 FRANCE GERMANY 40 40 2
Slide 15: All channels drive growth
ALL CHANNELS DRIVE GROWTH Q1 SALES GROWTH €m / % 21/22 22/23 Total sales 7,604 8,107 • Solid momentum, sCORE execution continues • All channels contributed: channels grow in line Growth in local currency 19.4% 5.2% with sCORE, METRO Markets sales above 46% Reported growth 20.0% 6.6% • Cyberattack im
Slide 16: Sizable gain from development project
SIZABLE GAIN FROM DEVELOPMENT PROJECT • 73k sqm site in Duesseldorf (incl. METRO store) sold to Swiss Life Asset Managers for development project • Gastronomy, housing and office space under highest ESG standards • Current METRO store to be replaced by 2 new stores (existing & new location) • Transa
Slide 17: Real estate & non-cash FX effects drive EPS
REAL ESTATE & NON-CASH FX EFFECTS DRIVE EPS Q1 €m 21/22 22/23 NET FINANCIAL RESULT EBITDA1 528 673 • Interest and investment result: one-time interest income from tax refunds and lower financing costs D&A -196 -209 • Other financial result: non-cash (reversible) FX-effects EBIT 333 464 on METRO’s in
Slide 18: FCF development in line with sCore
FCF DEVELOPMENT IN LINE WITH SCORE Q1 22/23 (€ m) Δ1(€m) EBITDA2 673 +145 OPERATING CASH FLOW • Δ NWC decrease NWC -146 -218 • Temporary inventory increase: product availability Recl-n of real estate gains -207 -202 prioritized during sCore assortment transition Other OCF -176 -77 • Increased receiv
Slide 19: Q1 guidance view in line with FY outlook
Q1 GUIDANCE VIEW IN LINE WITH FY OUTLOOK Q1 ACTUAL FY OUTLOOK3 +20% SALES1 +19% +8% +26% +27% +12% +5-10% Q1 Q2 Q3 Q4 FY +218 EBITDA2 +140 -69 Adj. +43 +131 -100 €-75 to -225 m FY 20/21 FY 21/22 Q1 Q2 Q3 Q4 FY FY 22/23 1 At constant currency, portfolio adjusted view. 2 Adj. EBITDA – in €m, EBITDA pr
Slide 20: 22/23: Expectations confirmed
22/23: EXPECTATIONS CONFIRMED Drive market Productivity gains Big property share gains & cost inflation Normalization of development D&A, net financial result, taxes Sales growth Adj. EBITDA decline ~€200 m gains (Oct `22) Normalization of D&A, net Net debt EPS Cash investments Positive Sales growth
Slide 21: Q&A
Bitte Design Q&A und Fotos vom CMD WITH YOU TODAY DR STEFFEN GREUBEL CHRISTIANChristian Dr. Steffen Greubel BAIER Baier CHIEF EXECUTIVE OFFICER CEO CFO CHIEF FINANCIAL OFFICER 21 10 Feb 2022 © METRO AG. Q1 2021/22
Slide 22: MPULSE
MPULSE Topics and background – from wholesale and from the world of our customers Print magazine Online www.mpulse.de How DISH relieves restaurateurs Digital support relieves your staff and increases your sales. Fish and meat in the head chef tasting Next issue: publication date March 1st METRO cust
Slide 23: 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
Slide 24: Events and financial calendar
EVENTS AND FINANCIAL CALENDAR Upcoming Financial events calendar 2022/23 13 Feb 23 Store Tour Neuss with 24 Feb 23 AGM (virtual) Investors (S. Greubel) 11 May 23 Q2 2022/23 (Report: 6.30 pm) 12 May 23 Q2 2022/23 (Call: 8.45 am) 24 9 Feb 2023 © METRO AG. Q1 2022/23
Slide 25: Portfolio adjusted guidance basis
PORTFOLIO ADJUSTED GUIDANCE BASIS 21/22: reporting 21/22: guidance 22/23: guidance Exits1 P O Japan and Myanmar JP/MM included JP/MM excluded O JP/MM excluded Belgium P BE included P BE included O BE excluded Acquisitions2 P Aviludo and Davigel3 P P incl. since consolidation incl. since consolidatio
Slide 26: Free cash flow details
FREE CASH FLOW DETAILS € million Q1 21/22 Q1 22/23 EBIT 333 464 Depreciation/amortisation/impairment losses/reversal of impairment 196 209 losses of fixed assets excl. financial investments Change in provisions for pensions and other provisions -4 -8 Change in net working capital 72 -146 Paid (-) /
Slide 27: Segments: Sales to EBITDA 1/3
SEGMENTS: SALES TO EBITDA 1/3 METRO Germany METRO West €m / % Q1 21/22 Q1 22/23 €m / % Q1 21/22 Q1 22/23 Sales 1,297 1,343 Sales 3,043 3,162 Growth in local currency 0.7% 3.6% Growth in local currency 36.1% 3.9% Reported growth 0.7% 3.5% Reported growth 36.1% 3.9% Adj. EBITDA 83 84 Adj. EBITDA 202 1
Slide 28: Segments: Sales to EBITDA 2/3
SEGMENTS: SALES TO EBITDA 2/3 METRO Russia METRO East €m / % Q1 21/22 Q1 22/23 €m / % Q1 21/22 Q1 22/23 Sales 798 888 Sales 2,447 2,663 Growth in local currency 7.8% -14.1% Growth in local currency 16.6% 15.0% Reported growth 17.9% 11.3% Reported growth 14.8% 8.9% Adj. EBITDA 81 60 Adj. EBITDA 140 1
Slide 29: Segments: Sales to EBITDA 3/3
SEGMENTS: SALES TO EBITDA 3/3 Others METRO €m Q1 21/22 Q1 22/23 €m / % Q1 21/22 Q1 22/23 Sales 20 51 Sales 7,604 8,107 Growth in local currency 19.4% 5.2% Reported growth 20.0% 6.6% Adj. EBITDA 15 -2 Adj. EBITDA 521 465 thereof FX thereof FX 12 Adj. EBITDA margin 6.8% 5.7% Real estate gains 3 203 Re
Slide 30: 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