BERENBERG & GOLDMAN SACHS GERMAN CORPORATE CONFERENCE. September 2018

Transcription

1 BERENBERG & GOLDMAN SACHS GERMAN CORPORATE CONFERENCE September 2018

2 AGENDA Company Intro Q3 Results Divestment process of Real 2

3 01 COMPANY INTRO 3

4 METRO - AN INTERNATIONAL LEADER IN WHOLESALE By operating segment By geography Wholesale (warehouse & foodservice) (B2B) 80% Wholesale (warehouse & foodservice) (B2B) 91% Germany (METRO Wholesale) 12% Asia 12% Western Europe (ex-germany) 28% Food retail (B2C) 20% Food retail (B2C) 9% Germany (Real) 20% Eastern Europe 28% FY 16/17 sales: 37bn FY 16/17 EBITDA 1 : 1.6bn % margin: 4.3% FY 16/17 sales: 37bn 1: EBITDA reported (including Special Items); EBITDA before Special Items 1.8bn (4.9% margin) 4

5 A 6-YEAR STORY OF BECOMING A MORE FOCUSED WHOLESALER with portfolio optimization Real Eastern Europe MAKRO UK Real Turkey MAKRO Egypt & Greece & Denmark GALERIA Kaufhof METRO Vietnam Kick-off sale process for Real Continue to become pure wholesaler ~47% ~48% ~50% ~80% Resulting wholesale sales share in % and strategic acquisitions 5

6 FULLY FOCUSED ON CUSTOMER VALUE AND COMPLETELY LOCALISED Customer value focus Fully empowered group of companies Wholesale Cash & Carry + Delivery FSD Digital Retail 6

7 ATTRACTIVENESS OF THE WHOLESALE SECTOR 1 Very sizeable target groups HoReCa & Trader 2 Significant growth momentum for Hospitality dining out/in a global mega trend 3 Customer relationships driven by opportunity to directly approach customers 4 Large baskets / tickets driven by supply chain function 5 High share of recurring customers driven by high relevance for SME business 6 High productivity due to significantly better customer structure and mix 7 Low cost to serve because of tailored operations for selected target group 8 Capex light as function is key / not design 9 DATA HEAVY B2B transactions allow for more analytics and additional value 7

8 BUILT ON STRONG RELATIONSHIPS AND RECURRING REVENUES Strong proximity to our customers High sales share from recurring customers 2 ~21m 1 Others 26% Others 81% Recurring 2 74% 74% Recurring 2 19% 19% # of customers Sales Source: Company information; Note: data for FY 15/16 for METRO Wholesale based on like-for-like ( LFL ); Data based on internal management system, so-called METRO WFS data warehouse, prepared using self-reporting customer classification; Sales are statistical, excluding non strategic categories (e.g. tobacco, petrol, empties), acquired companies (CFF, Rungis, Midban) and country divestments; consequently, deviations from financial information as reported in the METRO WFS combined financial statements may occur; See page 19 for LFL definition. 1 Customers are considered buying customers if they at least bought once at METRO Wholesale in the last 12 months; 2 Recurring customers are defined as # of HoReCa and Trader customers visiting 26 times and # of SCOs visiting 12 times over a 12-month period 8

9 BASED ON A STRONG FOUNDATION Engaged employees Adding value for our Customer Improving satisfaction EEI Engagement survey VCP Value Creation Plans NPS Net Promoter Score Industry average 63% 2 Sales growth Assortment amendments Expansion In 24 countries 3 all with positive Score feedbacks Innovation contacts made Source: company information; 1 internal METRO survey result based on the Aon Hewitt Methodology, Survey conducted in May 2017; 2 Global Retail-Benchmark 2018 according to Aon Hewitt Methodology; ³ as of July

10 VALUE CREATION POTENTIAL - FIVE STRATEGIC GROWTH LEVERS Store Delivery Franchise Horeca 1 2 Expansion Delivery Trader Tailored offers, formats and services 3 Franchise roll-out SCO 4 Operational Excellence 5 Solutions and knowledge transfer 10

11 KNOWLEDGE, SOLUTIONS & DIGITAL Knowledge Transfer Solutions Digital tools for SMEs METRO HoReCa academies Trader training Support programs Customer advisory Source: Company information Value added services Locally tailored solutions DIGITISATION of METRO Wholesale Online ordering Automated ordering through API 1 Extended marketplace Tools to enhance customer experience: Reservation Ordering & Payment Loyalty Tools to enhance efficiency Inventory Replenishment Admin 11

12 FOCUSING ON GROWTH IN PROFESSIONAL CUSTOMERS Accelerated SCO reduction Growth in strategic areas Customer split: HORECA Trader SCO Sales 2017/18 9M Cumulative vs. PY (FX-adjusted) 38% 34% 23% 20% HORECA 39% +7pp 46% / /18 1) Trader countries: Bulgaria, Czech Republic, India, Pakistan, Poland, Romania, Russia, Serbia, Slovakia 2) Excluding Russia 12

13 WE CREATE COMMUNITIES METRO has institutionalized an international celebration of independent entrepreneurship: THE OWN BUSINESS DAY SMEs published their specials 25 countries participated in

14 WE ENGAGE COMMUNITIES METRO actively supports start-ups developing digital solutions for HOSPITALITY AND RETAIL applications throughout 3 years 60+ countries of origin 14

15 GREAT OPPORTUNITY FOR DIGITIZATION OF THE HORECA INDUSTRY The HoReCa sector is one of the largest industries but it is still not digitized 420bn revenue industry 1 that impacts daily life like few others 1.8m entrepreneurs 1 passionate for their business Millions of customer contacts 120bn purchasing volume 1 Hospitality has been working in the same way for decades while the outside world has changed a lot Now technology opens new opportunities for customer interaction and service, business improvement, sustainability and innovation at a fraction of cost compared to previous times 1 Figures refer to European market 15 15

16 MORE THAN 500 RESTAURANTS ACROSS EUROPE HAVE TESTED 100+ DIGITAL SOLUTIONS 265 in Berlin 48 in Paris 43 in Barcelona 81 in Vienna 73 in Milan 16

17 BUSINESS IMPACT OF DIGITAL TOOLS Our pilots in five European Cities have proven significant business improvement through the utilization of digital tools. SMEs can enjoy substantial additional value across the value chain of their operations. +40% -10% +10% -15% <5% 1-3h Ticket increase COGS Improvement Sales Food Waste No-show rate Time saving per day Source: exemplary results from the pilots 17 17

18 METRO S APPROACH Discovery Feasibility Scale 2018-onwards Analysis of value creation opportunities through digital tools Selective engagement in digital solutions Support for the development of new digital solutions for the HoReCa sector in collaboration with TechStars Development of own solutions Investment in advanced solutions Pilot installation in four Metropolitan cities Build the community Scale solutions Enhance the business of SMEs 18

19 IN LESS THAN 6 MONTHS, ACROSS 15 COUNTRIES WE BROUGHT 100,000 RESTAURANTS ONLINE 100,000 restaurants 15 countries 14 languages 9 months 19

20 SUPPORTING HOSPITALITY SMES IN MAKING SMARTER BUSINESS MANAGEMENT DECISIONS Cockpit is a complete management tool for restaurants Revenue, profit and break-even analysis in real time Productivity insights Table management and analytics 20

21 STRONG REAL ESTATE UNDERPIN Comments Strong real estate underpin with significant freehold share at 46% International footprint Number of trade locations (ownership ratio) as of 31/03/ bn 1 book value of real estate across our markets Germany 385 (19%) Eastern Europe 284 (88%) 284 Value optimising real estate strategy Acquisitions (e.g. NSOs) Project developments Western Europe 239 (39%) Asia 136 (47%) 136 Ownership ratio 55% Divestments (single assets to medium- 23% sized portfolios) 46% Source: Company information as of FY 17/18; Note: Only warehouses are shown on map (excludes shopping centres, offices and storage locations), ownership ratio based on # of stores 1 Including finance leases, as per 30/09/

22 STEADY TOPLINE GROWTH, SOLID PROFITABILITY AND STRONG CASH CONVERSION Solid status quo with further mid-term ambition Drivers for further improvement Sales growth FY 17/18 Targets Mid-term ambition 1 >0.5% 3% Implementation of Value Creation Plans (VCPs) Strong focus on capex efficiency and NWC EBITDA Margin EBITDA slightly above previous year Stable optimisation FCF conversion % >60% No more restructuring charges Incentive scheme fully in sync with financial targets 1 At constant FX and before portfolio measures; 2 (EBITDA capex excluding finance lease extensions and M&A +/- change in NWC)/EBITDA 22

23 REAL: 3 YEARS TO CREATE SOLID FOUNDATION Commercial model Food Lover/ Markthalle P Omni-channel business P Competitive cost P Online marketplace RTG Krefeld opened November 2016 Braunschweig reopening October 2018 Bielefeld to come next 30 stores with Markthallen potential Modular concept roll-out 19 stores already remodeled +12 to come in 2018/19 c. 90% growth in GMV 2017/18 to c. 380 Mio. (16/17: >120%, 204 Mio) >5,000 merchants > 12m SKUs Online groceries 15 cities in Germany Cooperation with DHL Founded April 2017 German retailer Tegut joined in June 2018 Continue to add suppliers Tariff c. 2,000 people hired under the new tariff 7 partners on board 23

24 A powerful international wholesale group Customer value driven & completely localised Strong B2B relationships & recurring revenues Highly engaged teams Additional prospects: Digitalisation of SMEs and further opportunities Strong cash conversion Up-and-coming Food lover concept Sound balance sheet Substantial real estate underpin 24

25 02 Q3 RESULTS 25

26 A QUARTER OF PROGRESS AND EXECUTION METRO Wholesale Real In Retail METRO Germany +1.5% in LFL sales excl. Easter shift +11 points employee engagement (EEI) Store remodeling in Dusseldorf complete METRO Russia Improvement in sales trend Execution of BMPL (>5% volume) Franchise traction tripled Real >1,250 hires under new tariff 5 additional remodeled stores by September c.12 remodelings in the pipeline 26

27 Q3 KEY FACTS Sales growth Reported 1 : -0.9% Like-for-like: -0.5% Delivery 2 : +10% Online (Real): ~+30% EBITDA and EBITDA margin 3 EBITDA: 302m (PY 389m) Margin: 3.4% (PY 4.2%) EBITDA excl. RE: 302m (PY 379m) Margin excl. RE: 3.4% (PY 4.1%) Free Cash Flow (FCF) 4 EBITDA: - 87m vs PY Change NWC: + 102m vs PY Capex: + 47m vs PY FCF: + 62m vs PY Solid quarter despite Easter shift and FX headwind 1 Constant currency 2 Wholesale delivery 3 EBITDA including earnings contributions from real estate transactions 4 EBITDA - capex excluding finance lease extensions and M&A +/- change in NWC 27

28 SALES IN Q3 % Q3 2016/17 Q3 2017/18 Like-for-like growth 2.6% -0.5% METRO Wholesale 2.6% 1.0% Real 2.5% -6.6% Reported growth 4.9% -3.7% METRO Wholesale 6.2% -2.8% Real 0.7% -7.2% Sales share of respective sales line Delivery: Wholesale 17% 19% Online: Real 2% 2% Like-for-like growth Solid like-for-like development of -0.5% despite Easter shift Wholesale: strong growth in Eastern Europe and Asia; trend improvement in Russia Reported growth Wholesale: affected by adverse currency effects, in particular in Russia and Turkey Multichannel sales share Continued double-digit sales growth for METRO Wholesale delivery business Real with 30% online growth to 2% of sales FY guidance 9M like-for-like growth of 0.7% in line with FY guidance of >0.5% and total growth in local currency of 0.9% consistent with FY guidance of 0.5% 28

29 EBITDA IN Q3 m Q3 2016/17 Q3 2017/18 EBITDA excl. RE gains thereof METRO Wholesale thereof FX -18 thereof Real 33-7 thereof Others EBITDA excl. RE margin 4.1% 3.4% METRO Wholesale 4.7% 4.7% Real 1.9% -0.4% EBITDA and EBITDA margin Wholesale EBITDA at constant currency is 6m above PY Real with negative effects from the cancellation of the temporary tariff agreement Real estate gains No significant real estate gains this quarter FY guidance 9M EBITDA excluding real estate gains declined by -1.6% (at constant currency) in line with expectations Real estate gains 9 0 METRO Wholesale 0 0 Real 0 0 Others 9 0 Total EBITDA

30 SALES TO EBITDA IN Q3 (1/4) METRO Wholesale Germany METRO Wholesale Western Europe m / % Q3 2016/17 Q3 2017/18 Sales 1,196 1,166 Like-for-like growth 2.0% -1.7% Excl. Easter shift 1.5% Reported growth 1.6% -2.4% EBITDA excl. RE gains EBITDA margin 1.9% 1.8% Real estate gains 0 0 Total EBITDA m / % Q3 2016/17 Q3 2017/18 Sales 2,740 2,724 Like-for-like growth 1.7% -1.2% Excl. Easter shift 1.1% Reported growth 6.7% -0.6% EBITDA excl. RE gains EBITDA margin 4.7% 5.2% Real estate gains 0 0 Total EBITDA Adjusted for Easter shift, solid 1.5% LfL-growth Continuous increase in Horeca sales coming from improved frequency and basket EBITDA is largely stable Adjusted for Easter shift, solid 1.1% LfL-growth Reported growth in the current year is impacted by full annualisation of Pro-à-Pro acquisition EBITDA improvement driven by positive development in France as a result of non-food reengineering 30

31 SALES TO EBITDA IN Q3 (2/4) METRO Wholesale Russia METRO Wholesale Eastern Europe m / % Q3 2016/17 Q3 2017/18 Sales Like-for-like growth -3.3% -3.2% Reported growth 15.4% -19.5% EBITDA excl. RE gains thereof FX -15 EBITDA margin 10.2% 10.5% Real estate gains 0 0 Total EBITDA m / % Q3 2016/17 Q3 2017/18 Sales 1,768 1,785 Like-for-like growth 6.1% 6.2% Reported growth 3.4% 0.9% EBITDA excl. RE gains thereof FX -3 EBITDA margin 5.1% 5.0% Real estate gains 0 0 Total EBITDA Like-for-like significantly improved vs H1 (-8.8%); partly supported by METRO Expo, small positive effect from World Cup and first positive signs from BMPL EBITDA at constant FX on PY level; incl. c. 10m one-time benefit Adjusted for this, EBITDA margin still shows trend improvement vs Q2 2017/18 due to cost savings and lower de-gearing Strong like-for-like growth driven by majority of the countries. Reported growth impacted by negative FX impact Industry-wide salary indexation from Q2 2017/18 was offset by operational improvements in Poland and other countries EBITDA is largely stable 31

32 SALES TO EBITDA IN Q3 (3/4) METRO Wholesale Asia m / % Q3 2016/17 Q3 2017/18 Sales Like-for-like growth 4.3% 4.1% Reported growth 8.3% -0.8% EBITDA excl. RE gains thereof FX 0 EBITDA margin 3.3% 3.8% Real estate gains 0 0 Total EBITDA Positive like-for-like growth across majority of countries; reported growth impacted by negative FX impact EBITDA margin has improved as a result of continued cost consciousness in China and India 32

33 SALES TO EBITDA IN Q3 (4/4) Real Others m / % Q3 2016/17 Q3 2017/18 Sales 1,783 1,655 m / % Q3 2016/17 Q3 2017/18 Sales 2 1 Like-for-like growth 2.5% -6.6% Excl. Easter shift -2.7% Reported growth 0.7% -7.2% EBITDA excl. RE gains 33-7 EBITDA excl. RE gains EBITDA margin 1.9% -0.4% Real estate gains 0 0 Total EBITDA 33-7 Real estate gains 9 0 Total EBITDA Like-for-like was negatively affected by the Easter shift, hot weather conditions and temporarily limited availability of goods Margin decrease is driven primarily by termination of temporary tariff agreement which could not be compensated by operational optimization One-off EBITDA decrease due to start-up costs for the new warehouse facility in Germany and expenses incurred in relation to the replacement of a member of the Management Board 33

34 EBITDA TO EPS IN Q3 m / % Q3 2016/17 Q3 2017/18 EBITDA D&A EBIT Interest and investment result Other financial result Net financial result EBT Tax rate (9M) 55% 44% Net income EPS in EBITDA Reduction mostly driven by termination of temporary tariff agreement for Real as well as one-time start-up costs for warehouse platform Wholesale in constant currency 6m above PY Net financial result Y-o-y improvement in other financial result as Q3 16/17 included a negative FX-impact related to intercompany receivables Tax Y-o-y improvement is a result of demerger and restructuring costs in PY EPS EPS decrease driven mostly by lower EBITDA. 9M EPS came in at 0.66, which is in line with previous year, despite FX headwinds and shift of real estate gains 34

35 FCF IN Q3 m / % Q3 2016/17 Q3 2017/18 EBITDA Change in NWC Capex METRO Wholesale Real Others/Cons FCF Net debt (30 th June) 3,766 3,916 Change in NWC Wholesale: improvement driven mostly by Russia as PY was negatively impacted by trade law transition Real: improved inventory levels Capex Wholesale: decrease mostly driven by lower number of store openings (CY:2; PY:6) Real: used a store purchase option in PY FCF Increase is driven by improvement in NWC and lower Capex which were able to overcompensate the decline in EBITDA Net debt Y-o-y slight increase due to utilization of provisions in the current 9-month period and few real estate transactions in the 12 months 1 Capex excl. M&A and finance leases 35

36 METRO RUSSIA: ACCELERATED TRANSFORMATION TOWARDS B2B S Q3 2016/17 Q3 2017/18 LfL growth -3.3% -3.2% Sales 0.8bn 0.7bn EBITDA 2 85 EBITDA Margin 71 (c. 10m one-time gain) 10.2% 10.5% Stable EEI 3 in transformational environment Q3 with measurable LfL-trend improvement -8.9% Q1-8.6% Q2-3.2% Solid execution of Q2 action plan with initial positive results Q3 Network 91 stores / 2 depots EEI: 85 (PY 85) NPS: fully implemented Capture more potential in a 76bn Trader and a 15bn Horeca market 1 1 Sell-out value; Source: Internal, Market data: METRO from Euromonitor Passport Retailing and Consumer Foodservice Sell out values for Excluding real estate gains 3 Employee Engagement Index 36

37 METRO RUSSIA: IMPLEMENTATION OF ACTION PLAN Communicated Q2 Executed in Q3 Next steps Q4 Trader & HoReCa sales Assortment analysis P Full BMPL roll out with >5% in volume uptick already BMPL assortment sales +2.1% to PY Increase awareness through intensified communication Accelerate existing initiatives P 2 upgraded OoS 1 delivery locations Fasol traction for new contracts & stores tripled 3x new active contracts in Q3 1, x new active stores in Q more delivery locations Continue strong execution of Fasol (franchise) Q1 Q2 Q3 Q1 Q2 Q3 Strengthen local management setup P CCCO 2 and COO joined in July BMPL full potential Store excellence Process optimization P Multifunctional Center of Excellence (MCoE) pools administrative functions Step 1: store accounting from 2 accountants per store (182 in total) to 60 accountants in MCoE Multiple other functions to join MCoE 1 Out of Store 2 Chief Customer & Commercial Officer 37

38 METRO GERMANY: BECOME #1 MARKETPLACE FOR THE GASTRONOMY S Q3 2016/17 Q3 2017/18 LfL growth 2.0% -1.7% Excl. Easter 1.5% Sales 1.2bn 1.2bn EBITDA EBITDA Margin 1.9% 1.8% Continuous improvement of underlying trend: +11 EEI increase +1.5% in sales excl. Easter shift Further increased gastronomy focus with: Renewed own brand focus Remodeling of Dusseldorf store Network 103 stores / 7 depots 1 EEI: 66 (PY 55) NPS: ongoing roll out Continue to gain relevance for customers Best In Gastronomy (BIG) remodeling - Dusseldorf Horeca focus in assortment as well as Horeca separate entrance and optimized customer path in store Pick-up box allows for Sunday re-stocking Next store remodeling: Frankfurt 1 Depots of METRO Wholesale, excl. Rungis 2 Excluding real estate gains 38

39 ENGAGED EMPLOYEES AND SATISFIED CUSTOMER LEAD TO SUSTAINABLE GROWTH IN CORE TARGET GROUPS Highly Engaged engaged Employees employees Higher customer satisfaction Like-for-like growth in Q3 2017/18 EEI NPS LFL Measured with employee engagement index (EEI) METRO: to PY (Global benchmark 63) Measured with Net promotor score (NPS) 24 countries initiated All countries with positive NPS >600 stores live >240k customer responses +3.3% with HoReCa customers +3.7% with Trader customers in focus countries 1 and +6.1% excl. Russia Next Steps: Statistical analyses on loyalty and behavioral changes +1.4% with Food 1 Trader countries: Bulgaria, Czech Republic, India, Pakistan, Poland, Romania, Russia, Serbia, Slovakia 39

40 REAL: UPDATE ON GERMANY S LEADING FOOD LOVER RETAILER S Q3 2016/17 Q3 2017/18 LfL growth 2.5% -6.6% Sales 1.8bn 1.7bn Network 280 stores 65 locations owned EBITDA EBITDA Margin 1.9% -0.4% Commercial model P Omni-channel business P Competitive cost P Food Lover/ Markthalle Braunschweig remodeling progressing well, Bielefeld to be next 30 stores with Markthallen potential Modular roll-out 5 remodelings completed by September c.12 remodelings to complete in 18/19 Online marketplace >58% growth in GMV. 2% of total sales ~0.73m buying customers in Q3 >12m SKUs (+1m vs Q2) Online groceries 15 cities in Germany (+5 cities vs Q2) reach out to 13m Households Tariff >1,250 people hired under the new tariff representing c. 5% of total workforce RTG update German retailer Tegut joined (7 th partner) Continue to add suppliers 1 Excluding real estate gains 40

41 REAL ESTATE: BRIDGING TO FY EXPECTATIONS OF ~ 175M Examples: YTD July 2017/18 Completed Over 110m EBITDA Examples: YTG Aug-Sep 2017/18 Work-in-progress Various projects in the process of completion METRO Wholesale Spain Development followed by a Sale & lease back ~ 30m METRO Wholesale Development projects and excess property in Europe and Asia Real Germany Sale & lease back ~ 10m Real Germany Sale & lease back Others Germany Development ~ 45m 41

42 OUTLOOK FOR 2017/18 Guidance 1 Comments Sales growth in local currency FY 2016/17 FY 2017/18 1.1% 0.5% LfL growth 0.5% >0.5% Expectations for delivery growth, new stores, real estate gains, capex and FCF conversion confirmed Currency: - 50m FX impact expected for FY 2017/18 in EBITDA Net financial result: c m Tax rate: 45% (46.9% in 2016/17) Rep. EBITDA 1 excl. real estate gains 1,436m 2 Slightly above PY EPS: c. 15% increase ( 0.89 in 2016/17) 1 At constant FX and before portfolio measures 2 Reported EBITDA 2016/17 of 1,611m less 175m of real estate gains 42

43 03 DIVESTMENT PROCESS REAL 43

44 EVENT UPDATE On September 13, METRO Management decided to initiate the divestment process for Real business and to focus on Wholesale and serving professional customer needs. Real management has established all preconditions for long-term success Foundation for Real s stand-alone future is established, allowing more value creation opportunities for the new owner METRO, in turn, will focus on serving its professional customers / wholesale business 44

45 A 6-YEAR STORY OF BECOMING A MORE FOCUSED WHOLESALER with portfolio optimization Real Eastern Europe MAKRO UK Real Turkey MAKRO Egypt & Greece & Denmark GALERIA Kaufhof METRO Vietnam Kick-off sale process for Real Continue to become pure wholesaler ~47% ~48% ~50% ~80% Resulting wholesale sales share in % and strategic acquisitions 45

46 REAL: 3 YEARS TO CREATE SOLID FOUNDATION Commercial model Food Lover/ Markthalle P Omni-channel business P Competitive cost P Online marketplace RTG Krefeld opened November 2016 Braunschweig reopening October 2018 Bielefeld to come next 30 stores with Markthallen potential Modular concept roll-out 19 stores already remodeled +12 to come in 2018/19 c. 90% growth in GMV 2017/18 to c. 380 Mio. (16/17: >120%, 204 Mio) >5,000 merchants > 12m SKUs Online groceries 15 cities in Germany Cooperation with DHL Founded April 2017 German retailer Tegut joined in June 2018 Continue to add suppliers Tariff c. 2,000 people hired under the new tariff 7 partners on board 46

47 REAL: KEY FINANCIALS Sales EBITDA and EBITDA margin Online business m / % FY 16/17 9M 17/18 m / % FY 16/17 9M 17/18 m / % FY 16/17 9M 17/18 Sales EBITDA excl. RE gains Online Sales Share 1.4% 2% Like-for-like growth -1.0% -1.0% EBITDA margin 2.1% 2.4% GMV 204 c.380 Reported growth -3.1% -1.5% Real estate gains 6 0 GMV growth 120% c. 90% Total EBITDA Stores

48 KEY POINTS TO REMEMBER Yesterday, the management board of METRO AG decided to initiate the divestment process for Real. Over last three years, METRO s and Real s management has worked intensively to establish all pre-requisites for the long term success of Real: Markthalle and MCM new hypermarket concept to cater to the increasing customer demand for choice. Online sales growing at double-digit percentages. Creation of RTG as a platform to achieve more competitive cost structure by bundling purchasing volumes and allowing for cooperation in further administrative areas. Establishment of competitive labor terms through the new tariff model. Against that background, Real is fully equipped to capture the numerous value creation opportunities available under new ownership. METRO, in turn, continues to further simplify its business and focus on Wholesale and serving professional customer needs. The next update on the process will be in FY 2017/18 48

49 CONTACT Investor Relations METRO AG Metro-Straße Düsseldorf Germany T F E investorrelations@metro.de