METRO FACTBOOK FY 2019/20 - 24TH ODDO BHF FORUM 12 January 2021
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METRO FACTBOOK FY 2019/20 24TH ODDO BHF FORUM 12 January 2021
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 presentation and there can be no assurance that these estimates, expectations and assumptions are or will prove to be accurate. Furthermore, the forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or financial position to differ materially from any future results, performance or financial position expressed or implied in this presentation. Many of these risks and uncertainties relate to factors that are beyond METRO AG's ability to control or estimate precisely. The risks and uncertainties which these forward-looking statements may be subject to include (without limitation) future market and economic conditions, the behavior of other market participants, invest in innovative sales formats, expand in online and multichannel sales activities, integrate acquired businesses and achieve anticipated cost savings and productivity gains, and the actions of government regulators. Readers are cautioned not to place reliance on these forward-looking statements. METRO AG does not undertake any obligation to publicly update any forward-looking statements or to conform them to events or circumstances after the date of this presentation. This presentation is intended for information only and should not be treated as investment advice or recommendation. It is not, and nothing in it should be construed as an offer for sale, or as a solicitation of an offer to purchase or subscribe to, any securities in any jurisdiction. Neither this presentation nor anything contained therein shall form the basis of, or be relied upon in connection with, any commitment or contract whatsoever. This presentation may not, at any time, be reproduced, distributed or published (in whole or in part) without prior written consent of METRO AG. Not all figures included in this presentation have been audited and certain figures may also deviate substantially from information in the consolidated financial statements of METRO AG, thus, may not be fully comparable to such financial statements. The hypermarket business for sale is reported as a discontinued operation as of 30 September 2018 due to the ongoing sales process. Following the signing of the contract for the disposal of a majority stake in METRO China to Wumei Technology Group, METRO China has been reported as discontinued operation as of 30 September 2019. Meanwhile the sale has been closed and was reflected in Q3 and FY 2019/20 reporting. METRO will retain only 20% stake in METRO China. The discontinued segment primarily includes Real, majority of METRO China and some other individual companies or assets. All following explanations of the business development will focus on the continuing operations unless stated otherwise. Furthermore, the results are reported based on the retrospective adjustments due to IFRS 16. This presentation includes supplemental financial measures which are or may be non-GAAP financial or operative measures. These measures should not be viewed in isolation as alternatives to financial measures presented in accordance with IFRS. Other companies that disclose similarly titled measures may calculate them differently. All amounts are stated in million euros (€ million) unless otherwise indicated. Amounts below €0.5 million are rounded and reported as 0. Rounding differences may occur. 2 12.01.2021 © METRO AG.
01 COMPANY PROFILE 3 12.01.2021 © METRO AG.
COMPANY STRUCTURE
Discontinued operations in FY 2019/20
Hypermarket METRO China
Closed on 25.06.2020 closed on 23.04.2020
4 12.01.2021 © METRO AG.
YOUR SUCCESS IS OUR BUSINESS
HoReCa Trader SCO
42% 23% 35%
Diversified customer portfolio
Cash & Carry + Delivery with strategic focus on
Hospitality & Convenience
Operating in 24 countries
with 678 wholesale stores
under METRO/ MAKRO brand
FSD Franchise
8k Trader Franchise partners
in 9 countries
exemplary
Wholesale 360 Wholesale 360 as competitive
advantage through development
of true customer partnerships
~98k strong METRO
employees who are champions
for independent businesses
Sales1 % of total 1 LfL sales FY 2019/20
5 12.01.2021 © METRO AG.
WE 4 YOU
We are for our Employees We are for our Customers We are for our Society
We invest in our employees and this year We pay tribute to independent business With METRO Sustainable and our work on
we are named one of the Top Employers by owners and celebrate their success with the basis of our focus areas we contribute
the “Top Employers Institute”1 Own Business Day across METRO countries to sustainable communities worldwide
17 METRO national subsidiaries and 6 service companies received the renowned certification by the Top Employers Institute.
6 12.01.2021 © METRO AG.
SUSTAINABILITY – FOCUS AREAS
Within 8 focus areas, we concentrate on the following 3 topics:
Food waste Organic and
Conscious proteins
responsible products
We are a member of Innovation and
Consumer Goods We have a wide range transformation with next
Forum (CGF) and part policies and a generation food to drive
of 10x20x30 initiative respective wide range of change towards more
to reduce food waste organic and responsible sustainable consumption
along the supply chain products on our shelves and production
Cooperating in 9 METRO Extending functionalities Product development in
countries with Too Good of traceability system Own Brand range well in
To Go (TGTG) PROTrace to reduce progress
illegal fishing
Find our latest report below: https://reports.metroag.de/corporate-responsibility-report/2019-2020/
7 12.01.2021 © METRO AG.
MANAGEMENT BOARD
Christian Baier Rafael Gasset Andrea Euenheim Eric Poirier
Chief Financial Officer and Chief Operating Officer Chief Human Resources Chief Operating Officer
Co-CEO ad interim (Trader Cluster) and Officer and Labour (HoReCa Cluster)
Co-CEO ad interim Director
Member of the Management Member of the Management
Board of METRO AG since Member of the Management Member of the Management Board of METRO AG since 1
11 November 2016 Board of METRO AG since 1 Board and Labour Director of April 2020
April 2020 METRO AG since 1 November
Term ending: 2019 Term ending:
30 September 2025 Term ending: 31 March 2023
>8 years in METRO 31 March 2023 Term ending: 20 years in METRO
>10 years in METRO 31 October 2022
8 12.01.2021 © METRO AG.
02 FY 2019/20
SHOWING RESILIENCE IN
THE LIGHT OF COVID-19
9 12.01.2021 © METRO AG.
FY 2019/20 – DELIVERED ON OUR TARGETS
~€30 m
Savings this
Real Continuously accelerated year2 for HQ
Transaction closed structures
25.06.2020 growth ahead of COVID-19…
(Q1 growth: HoReCa +3,5% / Trader1 + 3,6%)
+ … as HoReCa sector significantly €-47 m
impacted by governmental in one-offs
METRO China restrictions
Transaction closed
23.04.2020
Flexible C&C operations and
diverse customer access prove ~150 FTE
€2.0 bn net cash proceeds to be especially valuable affected
Finalized milestone
LfL Adjusted HQ structures
transactions -3.9% accordingly
✓ ~ ✓
1 Trader countries: Bulgaria, Czech Republic, India, Pakistan, Poland, Romania, Serbia, Slovakia, Russia 2 In line with low double digit savings assumption. Saving mid-term should amount to mid double digit €m
10 12.01.2021 © METRO AG.FY 2019/20 – DELIVERING ON OUR AIM
• METRO aims to be a “partner like no other” to HoReCa and Trader customers…
Partnership Availability
Sales force: focused on >95% stores remained open
poaching new customers from during lockdown, focusing on
competition product availability
• …whose businesses [are sometimes challenged but] are supported by global
megatrends and exposed to technology disruption…
52%1 39%1
respondents choose own of all consumers are convinced
businesses in their area for that the diversity of independent
high quality and service businesses enriches one’s life
• by addressing all their needs through a full suite of wholesale products, services
and solutions
>200k B2B2C
Restaurateurs using addressed acceleration in online
digital tools grocery by engaging with B2B2C
players during pandemic
1 METRO International Own Business Study 2019/2020. 10,000 respondents including 1,500 business owners, in 10 countries. https://www.metro-cc.com/media/own-business-study
11 12.01.2021 © METRO AG.FY 2019/20 – FINANCIAL HIGHLIGHTS
“Robust 4.5%
€25.6bn “Customer
earnings Adj. EBITDA
momentum”
Sales
Margin recovery”
+9% €2.0 bn in
Trader €1.27 €0.70 Cash
Reported EPS Proposed dividend
countries LfL Proceeds
€3.8 bn “Sales and
3.8% “Strong
Net debt adj. EBITDA
Russia LfL Balance
[€1.6bn improvement at the upper
growth sheet”
to PY]
end”
12 12.01.2021 © METRO AG.FY 2019/20 – UPPER END OF THE REVISED GUIDANCE1
Sales growth2 LfL sales growth2 Adjusted EBITDA2,3
9M 19/20 FY 19/20 FY 19/20 9M 19/20 FY 19/20 FY 19/20 9M 19/20 FY 19/20 FY 19/20
Guidance Guidance Guidance
- 192
- 205
- 4.0% - 3.9%
-3.5 to -3.5 to -200 to
-5% -5% -250
- 5% - 5%
• Upper end of guidance range • Upper end of guidance range
• Supported by the strong Q4 sales, only slightly below PY level • Cost contingency measures limited
effect of sales loss
• Russia and Eastern Europe with positive growth vs PY
1 Guidance for financial year 2019/20, as adjusted on 3 August 2020 2 At constant FX and before portfolio measures 3 Adj. EBITDA - EBITDA pre transformation costs and real estate gains. The number represents fx-adjusted delta to PY
13 12.01.2021 © METRO AG.FY 2019/20 – A YEAR IN REVIEW
1 2 3 4
Covid-19 Impact
None Minor Strong Minor
• Like-for-like sales growth • Accelerated growth with • HoReCa sales strongly • Sales performance
driven by most regions HoReCa and Trader before affected by lockdowns but roughly on par with the PY
Covid-19 steep recovery in June
• Continuously strong • HoReCa sales recovered
growth with key customer • Stock-up sales by SCO • Sales development was notably and contributed to
groups HoReCa and Trader customers supported by stable significant trend
overcompensate first growth with Trader and improvement compared to
negative effects in accelerated with SCO Q3
HoReCa from govern-
mental restrictions
HoReCa Trader1 SCO 1 Full Trader sales
14 12.01.2021 © METRO AG.Continuing operations
SOLID PERFORMANCE AMID COVID-19 RESTRICTIONS
Q4 Q4 FY FY Sales
€m / %
2018/19 2019/20 2018/19 2019/20 • Sales development for the year driven by mix of
Total Sales 6,856 6,509 27,082 25,632 • Stable and accelerated growth with Trader & SCO
• Horeca affected by lockdowns but recovered in Q4
Like-for-like growth 2.1% -0.5% 2.1% -3.9%
• Resilient sales development supported by market share gains
Reported growth 3.3% -5.1% 1.1% -5.4% and positive development in Russia and Eastern Europe
Delivery Sales Share 18% 17% 17% 15% Adj. EBITDA
Adj. EBITDA1 359 323 1,392 1,158 • Stable operating performance in Russia, Eastern Europe and
Germany
thereof FX -23 -29
• The government restrictions had a negative impact
Adj. EBITDA margin 5.2% 5.0% 5.1% 4.5% especially on Western Europe and Asia which were partly
offset by:
Transformation costs 0 0 0 -47
• cost savings from efficiency program at the headquarters
Real estate gains 274 0 339 3
• benefit from improved operating result in logistics
Reported EBITDA 2
633 323 1,731 1,113 • license fee from Wumei3
Reported EBITDA
• Reported EBITDA impacted by transformation costs and
lower real estate gains
1Adj.EBITDA - EBITDA pre transformation costs and real estate gains 2 Reported EBITDA – Including transformation costs and real estate gains 3 Part of the transaction includes the license fee paid by Wumei for use of
brand over the next three years; reported in ‘Others’
15 12.01.2021 © METRO AG.FY 19/20 – SUPPORTING CUSTOMERS AND EMERGING
STRONGER THAN THE MARKET HORECA MARKET
METRO HoReCa
METRO Germany METRO Italy METRO France
% % %
country specific
Customized &
Up to 30% p.p Up to 30% p.p
market data
Up to 40%p.p
Mar
May
Sep
Jul
Mar
May
Mar
May
Sep
Sep
Jul
Jul
Eurostat (calendar and seasonally adjusted, nominal)
widely available
Food and beverage service activities vs METRO FY 19/20 Horeca Sales
Standardized &
market data
Full year 2019/20
~-13% ~-22% ~-16%
~-19% ~-27% ~-20%
METRO METRO METRO
Market Market Market
Germany Italy France
Different indicators point to MERTRO’s outperformance in key Western European Markets
Germany: DWH, npdgroup CREST Panel (Außer-Haus-Markt Deutschland Total), n≈ 12.000 participants / Month. Sell-out perspective
Italy: Estimated value. Sources: Resident consumptions: NPD monthly panel | Tourism-related: ISTAT (hotel presences until June) + FEDERALBERGHI (Jul-Sep press release); METRO sales = Horeca
16 12.01.2021 © METRO AG.
Food sales. Sell-out perspective
France: Market assessment based independent market size by Food Service Vision. Sell-out perspectiveContinuing operations
REGIONAL PERFORMANCE 1
HoReCa Trader SCO 1 1
42% 42%
60%
Germany 13%
23% Western Europe 17%
€m / % FY 2019/20 €m / % FY 2019/20
2,1% 2,8%
Sales 4,699 Sales 9,603
Like-for-like growth -0.8% Like-for-like growth -10.6%
Reported growth -0.8% Reported growth -10.7%
Adj. EBITDA 2 125 -3,9% -3,5% Adj. EBITDA 2
394
EBITDA margin 2.7% FY 2018/19 FY 2019/20 EBITDA margin 4.1%
Constant FX to PY -3 Constant FX to PY -242
Like-for-like growth Thereof: Food
1 1 1
14%
31% 34%
Russia 31%
Eastern Europe 33% Asia 36%
€m / % FY 2019/20 €m / % FY 2019/20 €m / % FY 2019/20
Sales 2,644 Sales 7,125 Sales 1,539
Like-for-like growth 3.8% Like-for-like growth 2.2% Like-for-like growth -7.0%
Reported growth -0.7% Reported growth -0.9% Reported growth -9.3%
Adj. EBITDA2 224 Adj. EBITDA2 371 Adj. EBITDA2 0
EBITDA margin 8.5% EBITDA margin 5.2% EBITDA margin 0.0%
Constant FX to PY 0 Constant FX to PY -1 Constant FX to PY -40
1Likefor like sales shares FY 2019/20 2Adj. EBITDA - EBITDA pre transformation costs and real estate gains
Note: Transformation costs affect segment “others”
17 12.01.2021 © METRO AG.Continuing operations
EBITDA TO EPS FROM CONTINUING OPERATIONS
Q4 Q4 FY FY D&A
€m / %
2018/19 2019/20 2018/19 2019/20 • Increase in D&A driven by higher IT-investments
with shorter useful life, a goodwill impairment in
Reported EBITDA 633 323 1,731 1,113 Q2 for CFF and smaller Covid-19 driven
D&A -204 -228 -774 -856 impairment of assets in Q4
Net financial result
EBIT 429 94 957 257
• Improvement in the interest and investment
Interest and investment result due to lower financing costs
-59 -55 -241 -217
result
• IFRS 16 accounting for EUR based lease
Other financial result 6 -36 12 -72 contracts paired with strong quarter-end
devaluation of many CEE currencies increases
Net financial result -53 -91 -230 -289
volatility in Other financial result, which is non-
EBT 377 4 728 -32 cash in nature
Tax expense -158 -14 -301 -108 Tax
• Tax expense is significantly below previous year
Net income 216 -11 421 -146 due to lower earnings
EPS from continuing
0.60 -0.03 1.16 -0.40 EPS from cont. operations
operations in € 1
• EPS from cont. operations decrease driven by a
combination of operating deleverage, low real
estate gains, higher depreciation and FX volatility
18 12.01.2021 © METRO AG.REPORTED EPS SUPPORTED BY SUCCESSFUL
EXECUTION OF TRANSFORMATIONAL TRANSACTIONS
Q4 Q4 FY FY EPS from continuing operations
€m / %
2018/19 2019/20 2018/19 2019/20 • Significant EPS increase in FY 18/19 due to
earlier execution of two real estate transactions
EPS from cont. operations 0.60 -0.03 1.16 -0.40 in China and better net financial result
EPS from disc. operations -0.53 0.22 -0.27 1.67 • FY 19/20 was negatively affected by
governmental restrictions in relation to Covid-19
Reported EPS 0.07 0.19 0.89 1.27 EPS from discontinued operations
• Significant growth driven by successful execution
Proposed DPS 0.70 0.70
of transformational transactions
Reported EPS
• 43% increase in reported EPS to previous year
Proposed DPS
• Proposed dividend of €0.70 based on reported
EPS, resulting in 55% payout ratio
19 12.01.2021 © METRO AG.Continuing operations
FREE CASH FLOW AND NET DEBT
FY FY Change in NWC
€m / %
2018/19 2019/20 • Decline is driven by high base last year and negative effects
from Covid-19, especially affecting Western Europe
Adj EBITDA1 1,392 1,158
Cash Investments
Leases -507 -509 • Overall reduction of cash investments also driven by Covid-
Adj EBITDA after leases 1
886 649 19 contingency measures
• Continued investments into digitization
Change in NWC 27 -172
Net debt
Cash Investments 2
-429 -356 • €1.6 bn reduction in net debt:
FCF 3 484 121 • due to the disposal of the majority stake in METRO China
and the hypermarket business (€2.0 bn)
FCF Conversion in % 55% 19% • weaker operative performance due to Covid-19 (~€-0.4
bn)
Net debt (30 Sept) 5,419 3,771
1Adj.EBITDA - EBITDA pre transformation costs and real estate gains. 2 Cash Investments = Capex (excl. M&A) - Right of Use Assets + Financial Assets + Down payments/Prepayments. Cash investments definition has been
changed due to IFRS 16 to reflect the cash view. 3 FCF Conversion in % is a ratio between the simplified free cash flow and the adjusted EBITDA after leasing-payments. The simplified free cash flow is calculated as adjusted
EBITDA less leasing-payments and cash investments (excluding mergers and acquisitions) +/- changes in net working capital
20 12.01.2021 © METRO AG.03 FY 2020/21 AND BEYOND;
OUTLOOK AND EXPECTATION
21 12.01.2021 © METRO AG.CURRENT TRADING UNDER PRESSURE IN LIGHT OF
ONGOING GOVERNMENTAL RESTRICTIONS
1 2
LFL Sales – all customer groups
3 4 October November
2%
1%
-1%
-12%
-18%
LFL Sales – HoReCa
4%
-10% -8%
>7% growth in
January and
February
-34%
-47%
22 12.01.2021 © METRO AG.HOW WE SEE FY 2020/21
Measures we are Assumptions with which Impact
taking we operate that we envisage
• Learnings from the first • Duration and intensity of • Further improvement of
wave of Covid-19 governmental restrictions competitive position
are not known • Gain further market share
Protect-Preserve-Grow
• Timing around widely • Return to sustainable
• Continuously strong
available vaccine is not sales and earnings
financial profile
clear growth after Covid-19
€1.6 bn reduction of net pandemic
• Therefore, we plan with
debt to PY
different scenarios and
update them regularly
23 12.01.2021 © METRO AG.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 -4.0% previous year (in • Highest impact in HoReCa regions i.e. Western Europe
currency absolute sales)
• Russia and Asia are expected to perform better than
the group
slightly below
LfL growth -3.9% previous year (in P&L
absolute sales)
• Real estate gains: mid-high double digit €m (€3 m in
19/20)
decline by a mid-
• Transformation costs: low-double digit €m (€-47m in
double-digit 19/20)
Adj.EBITDA2 €1,158 m
million euro • D&A: c. €-850 m (€-856 m in 19/20)
amount
• Net financial result3: c. €-225 m (€-289 m in 19/20)
• Tax expense: roughly on FY19/20 (€-108 m in 19/20)
1 At constant FX and before transformation costs, portfolio measures. Furthermore, the outlook is based on the assumption that negative impacts of the Covid-19 pandemic will not surge again in countries relevant for METRO and a recovery of the
HoReCa sector takes place primarily in the 2nd half of the business year
2 Adj. EBITDA - EBITDA pre transformation costs and real estate gains
3 Net financial result estimate based on fx-rates per end of November 2020 and therefore factoring in stable fx-rate compared to 2019/20 year-end closing
24 12.01.2021 © METRO AG.WHAT WE DO TODAY TRANSLATES INTO OUR LONG
TERM VALUE CREATION
LfL sales development* Adj. EBITDA* We are creating value
(%) (€m) for:
Recovery post
COVID-19 Customers:
Acceleration ~ pre-COVID- Supporting our customers while
of pre-crisis 1.158 19 levels investing into growth:
growth rates
mid
> FY 19/20 - CAPEX of04 STRATEGIC UPDATE 26 12.01.2021 © METRO AG.
TRANSFORMATION TOWARDS A PURE WHOLESALER IN
HIGHLY ATTRACTIVE MARKETS IS COMPLETE
Past Current Tomorrow’s
choices setup opportunities
27 12.01.2021 © METRO AG.PAST CHOICES LEADING TO TODAY’S STRENGTH
CULTURE and INVESTING into PURE
accountability tomorrow Wholesaler
The entrepreneurial culture
Shift in capex allocation from 10 businesses sold and
and accountability throughout
large remodelings and NSOs €47.1 bn in revenues, mostly
the organization
B2C, left in the past
…to future-oriented
….empowered Country Board investments into delivery, Annual portfolio review to
responsible for strategy and software and IT solutions identify markets with right to
execution which is further
play
supported by HQ functions
Operating model since 2015 Gradual shift since 2015 Transformation which started in 2011 to
a pure wholesaler is now complete
28 12.01.2021 © METRO AG.BENEFICIAL BUSINESS SETUP OF TODAY
Diversified customer Successful
Flexible business
group portfolio repositioning of the
operations
business
FSD only
HoReCa Trader
-6% to PY +1% to PY 55
23 % C&C only
124
42 %
34 % 554
SCO C&C and FSD
+4% to PY
Metro Russia
Sales Share FY 2019/20 [±%pp to PY] Number of locations FY 2019/201
“Its cheaper with Wholesale”
1 For the overview of our locations please refer to appendix
29 12.01.2021 © METRO AG.SETUP OF TODAY: A STRONG COMEBACK IN RUSSIA
Healthy top line after 3 years of
Efficient wholesale operations
negative LfL growth
~30%
~20
3,8%
Fasol As a result of business
>1,900
partners
repositioning to a PURE Employee NPS
increased with high
2019/20 +35% in sales Wholesale, we are supporting ~15 employee
per Fasol not only traders but also: participation of
partner
87%
Store
2019/20
more pallet
2018/19 placement for Digital traders MCOE2
higher 2017/18 Pooling functions
availability ~4% of sales for from stores to
2017/18 one center.
FY19/20 Increasing
-4,3% BMPL efficiency and
Volume growth benefiting from
fueled by price “HORECA №1 choice” labor arbitrage
investment
as a supplier, by Nielsen1
-7,0%
Like-for-like sales FY Sales per FTE in mRUB
1 Nielsen study with 150 HoReCa companies, 65% stated they have used METRO in the past and >50% will use it in the future 2 MCOE: multi-functional center of excellence to which some functions are centralized both from HQ and stores
30 12.01.2021 © METRO AG.ACTING ON OPPORTUNITIES THE CRISIS PRESENTS
Protecting employees Changing competitive Transition to a
and customers environment digital world
Key themes of the year
METRO’s response
Digital transformation of our
interfaces and customer touch
“PROTECT” “PRESERVE” “GROW” points started long before
Representing interests of
Participating in active Preempting the needs of
small and medium enterprises,
market consolidation HoReCa and Trader customers
pushing for their protection
through local solutions
31 12.01.2021 © METRO AG.ACTING ON OPPORTUNITIES: PROTECTING OUR TEAMS
AND FUTURE OF OUR CUSTOMERS
Rigorous implementation of all safety and prevention regulations;
our stores provide safe shopping experience without
compromising on high quality and service
Extensive smart-working/flexible desks are piloted in the HQ
The IT backbone which was rolled out two years ago allows for
uninterrupted business continuity while working remotely
Protecting employees
and customers
During the first wave we have Campaigning and representing business interests of our customers
succeeded in mobilizing our country Lobbying to increase public trust in HoReCa as a safe place
operations, prioritizing health and safety Engaging in governmental groups on needed safety measures
and postponing capex expenditure coupled with media cooperation what HoReCa is doing for safety
where applicable
32 12.01.2021 © METRO AG.…BECAUSE THEIR SUCCESS IS OUR BUSINESS…
HoReCa playbook with know-how and step-by-step Exclusive cooperation with PENTAGAST.
guide for the relaunch and operating under The air cleaner which is equipped with a special high-
restrictions performance virus filter with an efficiency of up to 99.995%
33 12.01.2021 © METRO AG.…BECAUSE THEIR SUCCESS IS OUR BUSINESS…
HoReCa under restrictions HoReCa under lockdown
Spain: Dine out early - Campaign calling for dining out EU: Manifesto Restaurants of Europe – Media
before curfew campaign and event to raise awareness of importance of
Spain/Germany: Support Hotline – Legal advice to HoReCa in Europe and restaurants as safe places
customers during crisis Netherlands: Ode to HoReCa – Video campaign with
Czech Republic/Slovakia: Impact Study – Economic vouchers, ads and CEO letter to trader/SCO customers to
consequences of restrictions on gastronomy, provided to encourage orders from local restaurants under lockdown
public & politics Spain: #Unopuntosiete - Establishing a platform with
Germany: Gastronomy and Society – Public polls on HoReCa associations and partners, public online petition
public perception on restaurants in crisis calling for state support for the sector
Czech Republic/Spain (i.a.): Recovery Plan - Germany: Gastro Live Chat Digital format
Engagement with associations and governments on HoReCa Poland/Germany/ Romania: Restart Gastro - Open
support plans letter to governments, calling for HoReCa re-opening
Germany: Restaurants as a partner, not the problem, based on an elaborated safety catalogue
in the fight against COVID-19 – open letter & campaign Austria: Financing package #Einerfüralle– Providing
Italy: Impact of early evening closings – 6AM dinner to extended payment terms and limits, public campaign
raise awareness of impact on restaurants of closings at 6PM around announcement
34 12.01.2021 © METRO AG.CAPTURING OPPORTUNITIES IN A CHANGING
ENVIRONMENT
By focusing on supporting our customers we observe that we
outperform the general market from a sales perspective, and as
a result win overall market share during this challenging
environment due to our regular customer contact and product
availability
>2,000 new >8,800 new HoReCa
FSD customers customers
Changing competitive In Germany acquired from June
to September
In Germany during the restart program (June
to September)
environment
Continuously assessing possibility of partnership or bolt-on
If there is any issue or problem, we will be acquisitions, when the opportunity is right and the company is a
helped immediately. We are very happy strategic fit
with METRO
METRO customer
35 12.01.2021 © METRO AG.CAPTURING OPPORTUNITIES: PARTNERSHIPS AND
ACQUISITIONS
Acquisition of an FSD player Extension reach Partnership with Sbermarket
Makro Portugal METRO Markets METRO Russia
2nd largest Food Service METRO Markets acquired trivago Developing e-grocery channel, by
Distributor (FSD) in Portugal Spain and took over the development partnering with existing independent
center in Palma with ~60 employees e-grocers
• Strong presence in Lisbon and the
tourism-oriented south • An opportunity to increase the • Customer places orders via
footprint and prepare for the website or app
• Expertise in meat processing and
expansion into the next country (METRO/Sbermarket)
stands for consistent quality
and service level standards • Picking and delivery is done by
digital traders
• Already operating in 52 cities in
Russia
€152 m 13,500
sales 2019 Customers nationwide
~ 40,000 SKU
available
For more information please refer to the
slide in appendix
Press Release Oct ‘20 Press Release July ‘20 METRO Russia Press Release Oct ‘20
36 12.01.2021 © METRO AG.LEADING IN DIGITAL TRANSITION
Out-of-home consumption will recover after Covid-19, as consumer
preferences and habits prevail;
Building on the existing relationships and true partnerships
with our HoReCa customers while leveraging WS 360
>200k >30k
Restaurateurs using Restaurants are using
digital tools table reservation tool
Transition to a
digital world Convenience trend accelerated through crisis;
Ramping up diverse online solutions and partnering with
e-commerce players to target end consumer demands –
digital – trader
Pre-existing some countries; quickly set up in others:
Our foundation gained significant credibility
due to using HD‘s MenuKit. We have spent
€17,000 at METRO in the past 4 months! 4 countries 5 countries
Have Digital Trader Run pilots
partners
37 12.01.2021 © METRO AG.LEADING IN DIGITAL TRANSITION: FIRST
MARKETPLACE FOR B2B IN GERMANY AND FRANCE
METRO FRANCE
Products & MARKETPLACE
Collaboration with international merchants
Capitalizing METRO’s unique customer reach
and creating the future of B2B commerce
>520 >525k
Partners Products
Market-
place ~€44 m
In GMV
Countries of operation:
1
…and more to come
! METRO Markets is planning expansion into Spain in FY20/21
38 12.01.2021 © METRO AG.LEADING IN DIGITAL TRANSITION: COVID RESPONSE
M|SHOP Trader
Offering a new ordering channel Entering contact details made easy
Allowing restaurateurs to sustain Helping restaurants to create a Live in Romania and Russia
their revenues – without database where to store a Solution highly specialized with
spending exploitative fees1 legally and GDPR-compliant individual target groups for:
France, single customer documentation of the guests • Assortment
example: • Pricing
• Features
300 orders in 3 months
5 countries
Turnover saved via DISH Order: Operating since July 300,000 ~€ 130m
orders placed Sales in 8 month
30%
>2,800
Equivalent of ~9 months of
Restaurants with >10.000
check-in in Germany buying customers
energy costs
1 According to newspapers and analyst reports, food delivery platforms charge 20-30% of the total order as a fee for delivery service and ~14% if order is picked up by a customer
39 12.01.2021 © METRO AG.APPENDIX
FY 2019/20
FINANCIALS
40 12.01.2021 © METRO AG.SALES BY QUARTERS 2019/20 Change (EUR) Change (local currency) Like-for-like % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 METRO 2.2% 1.8% -19.8% -5.1% 1.0% 2.1% -17.4% -0.6% 1.0% 2.3% -17.5% -0.5% METRO Germany -0.4% 4.9% -9.4% 2.7% -0.4% 4.8% -9.4% 2.7% -0.3% 4.8% -9.5% 2.7% METRO Western Europe 0.4% -6.3% -32.9% -3.5% 0.4% -6.3% -32.9% -3.5% 0.5% -6.3% -32.8% -3.6% METRO Russia 2.5% 11.3% -3.7% -12.7% -4.9% 10.4% 6.5% 8.4% -5.3% 9.8% 6.0% 8.2% METRO Eastern Europe 6.1% 9.9% -12.2% -5.5% 5.1% 11.2% -7.5% 1.9% 5.0% 11.2% -7.4% 2.0% METRO Asia 5.2% 0.0% -22.5% -19.8% 3.4% 0.5% -18.9% -11.9% 3.2% 0.2% -19.2% -12.2% 41 12.01.2021 © METRO AG.
BALANCE SHEET
Assets Equity and Liabilities
€ million FY 18/19 FY 19/20 FY 18/19 FY 19/20
Non-current assets 8,838 8,277 Equity 2,345 2,061
Goodwill 785 731 METRO AG Shareholder interest 2,314 2,053
Other intangible assets 562 576 Non-controlling interests 31 8
Tangible assets 6,635 5,811
Investment properties 127 188 Non-current liabilities 5,652 5,506
Financial assets 97 98 Provisions for post employment benefits plans and similar obligations543 550
Investments accounted for using the equity method 179 421 Other provisions 108 139
Other financial assets 150 185 Borrowings 4,766 4,541
Other non-financial assets 20 16 Other financial liabilities 55 17
Deferred tax assets 284 252 Other non-financial liabilities 25 193
Deferred tax liabilities 155 66
Current assets 8,992 4,915
Inventories 1,946 1,888 Current liabilities 9,832 5,625
Trade receivables 482 429 Trade liabilities 3,572 3,199
Financial assets 4 3 Provisions 158 287
Other financial assets 622 525 Borrowings 1,164 773
Other non-financial assets 279 377 Other financial liabilities 728 724
Entitlements to income tax refunds 190 145 Other non-financial liabilities 228 451
Cash and cash equivalents 500 1,525 Income tax liabilities 169 184
Assets held for sale 4,970 22 Liabilities related to assets held for sale 3,813 7
Total 17,830 13,192 17,830 13,192
42 12.01.2021 © METRO AG.CASH FLOW STATEMENT € million FY 18/19 FY 19/20 EBIT 957 257 Depreciation/amortisation/impairment losses/reversal of impairment losses of assets excl. financial investments 774 856 Change in provisions for post-employment benefits plans and other provisions -31 -10 Change in net working capital 27 -172 Income taxes paid -215 -140 Reclassification of gains (-) / losses (+) from the disposal of fixed assets -357 -4 Other 53 -140 Cash flow from operating activities of continuing operations 1,209 646 Cash flow from operating activities of discontinued operations 399 416 Cash flow from operating activities 1,608 1,062 Acquisition of subsidiaries -1 0 Investments in property, plant and equipment and in investment property (excl.usufructuary rights from leases) -258 -211 Other investments -198 -160 Investments in monetary assets -9 -8 Disposals of subsidiaries 0 0 Divestments 505 114 Disposal of financial investments 7 0 Cash flow from investing activities of continuing operations 46 -265 Cash flow from investing activities of discontinued operations -136 1,271 Cash flow from investing activities -90 1,006 Dividends paid -261 -261 Redemption of liabilities from put options of non-controlling interests -2 0 Proceeds from new borrowings 6,122 6,066 Redemption of borrowings -6,767 -6,487 Lease Payments -540 -547 Interest paid -112 -82 Interest received 28 16 Other financial activities -4 16 Cash flow from financing activities of continuing operations -1,535 -1,280 Cash flow from financing activities of discontinued operations -351 -278 Cash flow from financing activities -1,886 -1,557 Total cash flows -368 510 43 12.01.2021 © METRO AG.
POSITIVE MOMENTUM FROM LAST YEARS IS IMPACTED
BY GOVERNMENTAL RESTRICTIONS
As of 18/19 all metrics are excluding METRO China
HoReCa development Delivery2 sales
HoReCa LfL sales growth (METRO Wholesale) Delivery as % of sales (METRO Wholesale)
FY FY FY FY FY FY 16% 18% 17%
13% 15%
14/15 15/16 16/17 17/18 18/19 19/20 11%
3,5% 3,9% 4,1% 3,7% 4,2%
Consistently positive Wholesale LfL growth pre Covid-19
FY FY FY FY FY FY
LfL sales growth (METRO Wholesale) 14/15 15/16 16/17 17/18 18/19 19/20
-15,8%
FY FY FY FY FY FY
14/15 15/16 16/17 17/18 18/19 19/20
1,3% 2,1%
0,9% 0,6% 0,9% Trader development Food sales
-3,9%
LfL sales growth (METRO Wholesale) Trader Countries1 LfL food sales growth (METRO Wholesale)
Mid-term ambition
3% 9.0%
Incl. RU
7,2% 2,1% 1,7% 2,1% 1,9% 2,8%
4,5% 4,6% 5,1%
-3,5%
-0,1%
-1,7%
FY FY FY FY FY FY FY FY FY FY FY FY
14/15 15/16 16/17 17/18 18/19 19/20 14/15 15/16 16/17 17/18 18/19 19/20
1 Trader LfL excl. Russia: Bulgaria, Czech Republic, India, Pakistan, Poland, Romania, Serbia, Slovakia
2 Delivery definition has been changed in the Annual report FY18/19 to exclude transportation after checkout and pick up, hence 18/19 and 19/20 follow new definition
44 12.01.2021 © METRO AG.METRO - KEY STATISTICS
METRO 2018/19 2019/20
Sales Stores
Stores 678 678
€m FY 2018/19 FY 2019/20 FY 2018/19 FY 2019/20
Germany 4,735 4,699 103 103
Selling space ('000 sqm) 4,728 4,723
Austria 760 736 12 12 Ø store size (sqm) 6,973 6,966
Belgium 737 713 17 17 Ø Sales / sqm (EUR) 5,729 5,427
France 5114 4567 98 98 Employees (annual average by headcount) 101,654 97,639
Italy 1722 1416 49 49
Netherlands 767 786 17 17
Portugal 398 351 10 10
Spain 1253 1033 37 37
Western Europe (w/o Germany) 10,752 9,603 240 240
Russia 2,662 2,644 94 93
Bulgaria 395 391 11 11
Croatia 226 188 10 10
Czech Republic 1,062 999 13 13
Hungary 471 438 13 13
Kazachstan 80 75 6 6
Moldova 102 113 3 3
Poland 1,385 1,330 29 29
Romania 1,190 1,233 30 30
Serbia 195 188 9 9
Slovakia 432 430 6 6
Turkey 1,027 985 34 34
Ukraine 627 754 31 32
Eastern Europe (w/o Russia) 7,191 7,125 195 196
India 848 787 27 27
Japan 287 256 10 10
Pakistan 310 309 9 9
Myanmar 2 7 0
Classic Fine Food 250 180 0 0
Asia (incl. CFF) 1,696 1,539 46 46
Others 46 22 0 0
METRO 27,082 25,632 678 678
45 12.01.2021 © METRO AG.OPERATIONAL METRICS
2018/19 2019/20
Food share in Total sales 89% 89%
Non food share in Total sales 11% 11%
FSD (excl. TAC/PU) in Total sales 17% 15%
Own Brand Share in Total sales 17% 16%
46 12.01.2021 © METRO AG.FSD AND TRADER FRANCHISE FSD number FY 2018/19 FY 2019/20 Model 1: Out-of-store delivery Model 1 544 542 Model 2: Depot in METRO store Model 2 12 12 Model 3: Independent depot Model 3 56 55 thereof M&A 37 37 Franchise number FY 2018/19 FY 2019/20 Russia 1,769 1,931 Czech Rep. 492 497 Slovakia 505 545 Bulgaria 540 510 Croatia 126 136 Serbia 529 519 Pakistan 23 28 Poland 2,473 2,714 Romania 1,003 1,278 Total 7,460 8,158 47 12.01.2021 © METRO AG.
CASH INVESTMENT ALLOCATION
€m FY 2018/19 FY 2019/20
Expansion 8 5
Remodelling 24 19
FSD 18 13
Maintenance 156 126
Digital/IT 197 186
Others 26 7
Cash Investments (as shown in FCF) 429 356
Bridge to segment reporting (mainly lease
397 272
additions)
Investments 826 627
48 12.01.2021 © METRO AG.REAL ESTATE
2019/20 Total Owned
Stores Stores
METRO 678 353
METRO Germany 103 10
METRO Western Europe 240 83
METRO Russia 93 89
METRO Eastern Europe 196 153
METRO Asia 46 18
49 12.01.2021 © METRO AG.FACT SHEET EXTERNAL FINANCING
Interest Expense Maturity Profile
Net Debt External Funding Mix
30 September 2020
* *
*Lease liabilities according to IFRS16: €3,215m in 18/19 and €3,027m in 19/20
50 12.01.2021 © METRO AG.OUR ESG RECOGNITIONS Rating/Score Scale
Publication
date
81
Dow Jones Sustainability Index Index member World & Europe 0 to 100 11/2020
Food & Staples Retailing
C+
ISS-oekom Corporate Rating D- to A+ 04/2020
Prime Status
CDP Climate Scoring A F to A 12/2020
CDP Forest Scoring C B B- F to A 12/2020
Cattle Palm Oil, Paper, Wood Soy
CDP Water Scoring B F to A 12/2020
FTSE4Good Global/Europe Index Index member - 06/2020
MCSI Index member - -
51 12.01.2021 © METRO AG.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
52 12.01.2021 © METRO AG.53 12.01.2021 © METRO AG.
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