Metro AG · VIE:MEO2
Metro — Investor Presentation (February 2020)
12 slides from Metro's investor presentation, Feb 3, 2020
Slide 1: IFRS 16 Restatement 2018/19 (Continuing Operations)
IFRS 16 RESTATEMENT 2018/19 (CONTINUING OPERATIONS) 03 February 2020
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: Key Principles and Main Impacts (1/2)
KEY PRINCIPLES AND MAIN IMPACTS (1/2) Background and Key Principles Why? Conceptual framework perspective • IFRS 16 was introduced by IASB in January 2016 in order to provide more transparency on companies’ lease assets and liabilities and to improve comparability between companies that lease and th
Slide 4: Key Principles and Main Impacts (2/2)
KEY PRINCIPLES AND MAIN IMPACTS (2/2) Main Impacts • Previously, lease contracts where either classified as operating or finance lease. With IFRS 16, operating leases are accounted for as finance lease (with selected exceptions) • Operating leases capitalised on the balance sheet, assets depreciated
Slide 5: IFRS 16 Impact on KPIs (1/3)
IFRS 16 IMPACT ON KPIS (1/3) Group Performance 2018/19 Comments 18/19 • Group Sales completely unaffected Effect of 18/19 € million 1 before • As operating lease expenses are being IFRS 16 Restated IFRS 16 replaced by depreciation and interest Sales (net) 27,082 - 27,082 expenses EBITDA excl. RE gai
Slide 6: IFRS 16 Impact on KPIs (2/3)
IFRS 16 IMPACT ON KPIS (2/3) Balance Sheet (as per Sep 30, 2019) Comments 18/19 Effect of 18/19 • IFRS 16 results in a significant balance € million1 before IFRS 16 IFRS 16 Restated sheet extension of 3.3bn€ driven Assets 14,497 3,345 17,842 mainly by non-current assets / liabilities • Equity decrea
Slide 7: IFRS 16 Impact on KPIs (3/3)
IFRS 16 IMPACT ON KPIS (3/3) Cash Flow Statement 2018/19 Comments • Cash flow statement mainly affected by 18/19 Effect of 18/19 € million1 before IFRS 16 IFRS 16 Restated shift effects resulting in an… • Increased cash flow from Operating CF 796 397 1,193 operating activities (+397m€ due 46 - 46 to
Slide 8: IFRS 16 Impact on EPS
IFRS 16 IMPACT ON EPS EPS dilutive at beginning of lease METRO | average over all affected contracts EPS accretive at end of lease. €m Rent Interest & D&A Interest D&A Time of lease contract • At the beginning of the lease P/L expenses are higher than cash payments. This effect does get compensated
Slide 9: EBITDA (Margin) Segments
EBITDA (MARGIN) SEGMENTS Impact on Segment Reporting Comments EBITDA excl. RE gains EBITDA Margin • Impacts of IFRS 16 differ across segments, depending largely on the composition of 18/19 18/19 Effect of 18/19 Effect of 18/19 underlying lease portfolio in terms of e.g. € million1 before before IFRS
Slide 10: Summary View
SUMMARY VIEW IFRS 16 implications on… Income Statement 2018/19 • Sales completely unaffected in absolute terms and growth rates • EBITDA excluding real estate transactions increases by €371 million to €1,392 million • EBITDA margin increases by 1.4%-points to 5.1% • Depreciation changes by €-243 mil
Slide 11: © METRO AG.
02/03/2020 © METRO AG.
Slide 12: Store Portfolio
STORE PORTFOLIO As of 30.09.2019 Total Owned 1 Freehold ratio Relevant 1 IFRS (# of stores) (# of stores) (%) interest rates (%) METRO 678 355 52% 1.2 - 37.5% METRO Germany 103 10 10% 1.2 - 10.2% METRO Western Europe 240 84 35% 1.3 - 10.6% METRO Russia 94 90 96% 6.3 - 37.5% METRO Eastern Europe 195