Global Consumer & Retail Conference September 2010, London Dr Eckhard Cordes, CEO

Transcription

1 Global Consumer & Retail Conference September 2010, London Dr Eckhard Cordes, CEO

2 Disclaimer and Notes To the extent that statements in this presentation do not relate to historical or current facts, they constitute forwardlooking statements (including within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended). All forward-looking statements herein are based on certain expectations and assumptions at the time of publication of this presentation and 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 GROUP s ability to control or estimate precisely, including (without limitation) future market and economic conditions, the behaviour of other market participants, the ability to successfully 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 GROUP 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. It is not intended as an offer for sale, or as a solicitation of an offer to purchase, any securities in any jurisdiction. This presentation may not be reproduced, distributed or published without prior written consent of METRO GROUP. All numbers are before special items, unless otherwise stated. Please note that new accounting standards have been applied. More information regarding the application of accounting methods refer to the notes to the Annual Report 2009 and the Half-Year Financial Report H1/Q Extra s activities are disclosed as discontinued operations in 2007 and Figures at Other are adjusted for Adler s activities in 2007, 2008 and The figures in this presentation are rounded to provide a better overview. The calculation of deviations is based on figures incl. fractions. Therefore rounding differences can occur. 1

3 Macroeconomic Environment Still Challenging but Improving GERMANY Strong economic recovery driven by exports Robust labour market and falling levels of unemployment However, still soft domestic demand despite growing consumer confidence WESTERN EUROPE Economic recovery progressed only moderately Focus on Eurozone preservation and reduction of fiscal deficits Consumer confidence dampened in many countries Slow recovery of retail sales EASTERN EUROPE Recovery differs greatly from country to country Retail sector with trend improvement; non-food still impaired Russia saw strong retail sales growth ASIA AFRICA Asia is growth driver in the global economy Growth rates already returned to pre-crisis level Retail sector with positive development 2

4 Shape 2012 Efficiency- and value-enhancing programme to achieve additional 1.5 billion EBIT contribution sustainably from 2012 on Implementation well on track Decentralised organisation structure in place 800 million in cost reductions largely effective in 2011 (~8% of total costs excl. depreciation and leases) 700 million in productivity gains fully effective in 2012 million 700 Metro Cash & Carry 400 Real 250 Media Markt and Saturn 50 Galeria Kaufhof 50 Real estate Productivity Gains 800 Cost Reductions Other 1,500 EBIT effect Shape 2012 GER ~40% WE ~30% EE Asia ~30% Indicative regional split Market conditions, price investments Net EBIT effect 2012 illustrative 3

5 Shape 2012 Well on Track Consequent monitoring of Shape measures based on proximity, control and action Shape 2012 already contributed 208 million in % 98% 29% 17% 108% 21% 14% 40% 116% 16% 13% 42% 112% 15% 4% 44% 112% of targeted 1.5 billion EBIT potential underpinned with measures 30% 15% 17% 26% 0% 15% 7% 18% 28% 23% 31/03/09 30/06/09 30/09/09 31/12/09 31/03/10 30/06/10 Implementation Levels: 1 Idea 2 Evaluated 3 Approved 4 Implemented 5 Effective 4

6 Capex Increase following Solid Development H1 Satisfactory performance despite challenging trading conditions Group sales grew by 2.4% (pre-currency: +0.6%) Sales in Germany adjusted for store closures slightly below prior year s level International sales rose by 4.9% Western Europe +4.0% Eastern Europe +5.6% Asia/Africa +8.6% EBIT increased by 67 million to 470 million FY 2010: Outlook reiterated and capex increased to 2.1 billion; 95+ new store openings -2.5% Q1-79 Q1 Sales Development development ( ) % Q2-4.6% Q3-3.4% Q4 2.3% Q1 EBIT Development ( in million) Q2-10 Q3-94 Q4 49 Q1 2.4% Q2 18 Q2 5

7 Metro Cash & Carry A Success Story in Modern Mass Distribution Leading global Cash & Carry wholesaler Matchless international expansion: international share of sales over 80% High RoCE (>35%) due to capital efficient model Profitable growth drivers: Turnaround Germany Innovating the business model International expansion 6

8 Challenges in Germany are Being Fully Addressed Pricing Price leadership in German Cash & Carry sector restored Price of core demand articles permanently reduced by up to 40% Assortment Extension of private labels Focus on wine, restaurant/catering and seasonal assortments More attractive non-food assortment Field Force Establishment of a professional key account management Leveraging customer demand from data warehouse better Increasing share of wallet and number of HoReCa customers Costs Structured cost management approach Improving store and administration efficiencies 900 FTEs reduced in

9 Top Priorities: Making the Business Even Better... Private label push Food Non-Food Transform the Model Delivery service roll-out Enhanced CRM Professionalising the food assortment New approach in non-food HoReCa Trader SCO "Food Pro" Club" "Non- Food Pro" Metro Drive Rapid expansion model to cover cities without further store potential First opened in October 2009 in France Innovating the Model Online catalogue for food & non-food assortment Makro Punkt Satellite store supplied mainly by mother store with dedicated Trader focus First opened in October 2009 in Poland 8

10 ... While Growing it Faster Accelerate expansion with focus on Asia and Eastern Europe Improve capital efficiency of new store openings In China, focus on three expansion areas to achieve critical mass New Store Openings Targeted East Coast Expansion Areas in China ~40 ~50 Existing Planned Potential Harbin Shenyang 32 ~30 Beijing Tianjin Dalian Bohai Bay (incl. Beijing) Asia/New Markets Europe/MENA E 2011E 2012E Chengdu Kunming Xi an Chongqing Zhengzhou Wuhan Changsha Hefei Nanjing Nanchang Hangzhou Qingdao Fuzhou Quanzhou Guangzhou Xiamen Foshan Dongguan Zhongshan Zhuhai Shenzhen Changzhou Wuxi Nantong Suzhou Shanghai Jiaxing Ningbo Yangtze River Delta (incl. Shanghai) Metro Existing Store Metro New Stores Pearl River Delta (incl. Guangzhou) 9

11 Real - A Leading Hypermarket Player Leading player in Germany Presence in five Eastern European countries with top market positions Large range of fresh produce complemented by attractive non-food assortment Profitable growth drivers: Driving turnaround in Germany further Eastern Europe ( sales CAGR: +29%) 2 3% EBIT margin targeted 10

12 In Germany Real Is Making Good Progress Improved Customer Orientation German EBIT margin at 1% in 2009 Staff friendliness Value-for-money Availability of products Former Walmart stores turned positive Staff expertise Choice/range of products Attractiveness for our customers has further improved Competitive price positioning Share of private label increased to 16%; including fresh 23% Cleanliness/ store hygiene Store atmosphere Price Positioning Quality of products % 102.6% 18 out of 27 underperforming stores are disposed of 97.9% % 100.0% 97.5% 97.9% Retailer 1 Retailer 2 Retailer 3 Retailer 4 Retailer 5 11

13 Focus is on Concept Enhancements to Drive Customer Frequency and Basket Implementation fully on track Concept Modules Implemented in concept modules were implemented as at 30 June 2010 (2009: 614 concept modules) Positive customer response after concept implementation In total 400 concept modules to be implemented in 2010 Intern. Spec. F&V Q1 79 concept modules DIY Electr. Household Textile Service Centre Roll-out 2010 Q2 Q3 Wine & Spirits Others Beauty & More Q4 TOTAL 102 concept modules c.130 concept modules c.80 concept modules c.400 concept modules 12

14 Eastern European Business Has the Potential to Become a Significant Driver of Profitable Growth 108 stores in five countries Sales CAGR of almost 30% in the last five years Presence in Eastern Europe Top 3 market position in Poland and Romania Strong growth momentum in Russia Significant EBIT improvement in H As at 30/06/2010 Sales # of stores million CAGR: +29% 2,296 2,885 2, ,

15 Media Markt and Saturn Market Leader in Europe Pan-European market leader in consumer electronics retailing Large-scale, full assortment and highly capital efficient Entrepreneurial management: Store managers are partners and determine assortment, pricing and staffing Profitable growth drivers: International expansion Multi-channel approach to complement the store base Private label launch 14

16 Market Share Gains Continue in a Challenging Environment Market position Jan.-June 2008 Jan.-June 2009 Jan.-June points Austria # % 23.3% 26.4% 3.1% Hungary # % 19.7% 19.7% 0.0% Germany # % 18.9% 18.3% -0.6% Poland # % 18.7% 16.3% -2.4% Luxemburg Newcomer 0.0% 14.2% 15.8% 1.6% Netherlands # % 14.4% 15.0% 0.6% Switzerland # % 11.3% 14.6% 3.3% Italy # % 12.2% 13.3% 1.1% Spain # % 10.7% 11.6% 0.9% Belgium # 1 8.5% 9.7% 11.2% 1.5% Greece # 2 6.6% 8.8% 9.1% 0.3% Sweden Early stage 4.6% 8.0% 8.0% 0.0% Portugal # 4 5.3% 6.4% 6.5% 0.1% Turkey Newcomer 1.2% 2.4% 4.0% 1.6% Russia Early stage 1.5% 2.5% 3.9% 1.4% France Relaunch 1.9% 2.0% 2.3% 0.3% Source: GfK 15

17 New Initiatives Offer Huge Opportunities MULTI-CHANNEL APPROACH Complementing the store base Addressing and interacting directly with the customers along all touchpoints Extending the assortment with content, services and bundles PRIVATE LABELS Huge potential by developing multiple private labels Negotiate exclusive brands, ranges and models with core suppliers MARKET ENTRY INTO CHINA Chinese market for consumer electronics to grow to more than 180 billion over the next five years Market entrance via a joint venture with Foxconn 2-phase approach to start in Shanghai and finetune the Chinese business model 16

18 Galeria Kaufhof Leader in German and Belgian Department Stores Concept and systems leader in Germany s department store segment and market leader in Belgium 3.5 billion sales in % fully leased EBIT margin in 2009 Profitable growth drivers: Focus on mid-market and lifestyle orientation (sharper brand and private label portfolio) Strong cost and stock management In the context of Group strategy non-core 17

19 Outlook Medium- Term Sales growth EBIT (before special items) -3.6% 0 6% > 6% 2.0 billion > 2.0 billion > 10% Capex 1.5 billion 2.1 billion > 2.2 billion New store openings ~ 30 ~ 5 ~ 60 ~ 40 ~ 15 > 70 18

20 Key Messages Portfolio of strong retail brands with diversified international presence Efficiency- and value-enhancing programme Shape 2012 well on track METRO GROUP well positioned for future profitable growth 19

21 Global Consumer & Retail Conference September 2010, London Dr Eckhard Cordes, CEO

22 Appendix

23 Metro Cash & Carry Financials ( million) * 2009* Sales 21,032 22,726 23,972 25,093 26,442 28,087 29,907 31,698 33,143 30,613 35,000 Sales Change yoy in % 8.0% 8.1% 5.5% 4.7% 5.4% 6.2% 6.5% 6.0% 4.6% -7.6% Change yoy in % - pre-currency 7.2% 8.8% 6.4% 7.7% 5.6% 4.4% 6.2% 5.7% 5.4% -2.5% 30,000 Change yoy in % - lfl (LC) % 1.6% 1.1% -0.3% 1.9% 2.2% 2.4% -4.9% 25,000 EBITDA ,078 1,200 1,280 1,377 1,510 1,631 1,406 1,165 Change yoy in % 9.9% 11.4% 10.9% 11.2% 6.7% 7.6% 9.6% 8.0% % 20,000 EBITDA margin 4.2% 4.3% 4.5% 4.8% 4.8% 4.9% 5.0% 5.1% 4.2% 3.8% 15,000 EBIT** ,111 1,243 1, Change yoy in % 6.9% 11.7% 12.4% 12.3% 6.5% 5.1% 9.7% 11.9% % 10,000 EBIT margin 3.0% 3.2% 3.4% 3.6% 3.6% 3.6% 3.7% 3.9% 3.4% 3.1% 5,000 Capital Employed ,565 2, RoCE % 35.9% Sales ( million) Capex * New segment reporting structure ** until 2003: EBITA Operating Statistics Number of stores Selling space (1,000 sqm) 2,972 3,182 3,423 3,725 3,952 4,218 4,507 4,875 5,176 5,291 Change yoy in % 6.6% 7.1% 7.5% 8.8% 6.1% 6.7% 6.9% 8.2% 6.2% 2.2% Average store size (sqm) 8,419 8,287 7,832 7,841 7,841 7,754 7,717 7,927 7,902 7,921 Sales/Øsqm ( ) 7,304 7,386 7,259 7,021 6,889 6,876 6,856 6,757 6,595 5, Regional Sales Breakdown Eastern Europe 36% Asia/Africa 7% 17% Germany 40% Western Europe 22

24 Real Financials* ( million) ** 2009** Sales 8,166 8,375 8,198 8,205 8,182 8,192 8,775 11,003 11,635 11,298 12,000 Sales and EBIT Margin 4% Change yoy in % 2.4% 2.6% -2.1% 0.1% -0.3% 0.1% 7.1% 25.4% 5.8% -2.9% Change yoy in % - pre-currency 2.3% 3.0% -1.1% 1.2% 0.0% -1.2% 7.1% 25.0% 5.4% 1.3% Change yoy in % - lfl (LC) % 0.1% -2.2% -4.7% -2.5% -0.1% 4.4% 0.0% EBITDA Change yoy in % 13.6% 28.0% 5.3% 3.1% -8.3% % -16.7% % EBITDA margin 3.4% 4.2% 4.5% 4.7% 4.3% -1.5% 2.2% 1.5% 1.6% 2.1% 10,000 8,000 6,000 4,000 3% 2% 1% EBIT*** Change yoy in % 15.2% 46.0% 13.5% 5.9% -9.3% ,000 0% EBIT margin 1.7% 2.4% 2.8% 2.9% 2.7% 0.0% 0.2% -0.2% 0.1% 0.5% Capital Employed ,942 2, % RoCE % 1.9% Sales Capex EBIT margin * excluding Extra ** New segment reporting structure 2009 Regional Sales Breakdown *** until 2003: EBITA Operating Statistics* Number of stores Selling space (1,000 sqm) 2,006 2,016 2,019 2,078 2,135 2,242 3,158 3,103 3,148 3,184 Change yoy in % 0.6% 0.5% 0.1% 3.0% 2.7% 5.0% 40.9% -1.7% 1.4% 1.1% Average store size (sqm) 7,267 7,279 7,262 7,192 6,977 6,835 7,145 7,150 7,171 7,220 Sales/Øsqm ( ) 4,058 4,165 4,063 4,005 3,884 3,743 3,250 3,515 3,723 3,569 Eastern Europe 24% 76% Germany 23

25 Media Markt and Saturn Financials ( million) Sales 7,619 8,341 9,583 10,563 12,210 13,306 15,156 17,444 18,993 19,693 Change yoy in % 24.0% 9.5% 14.9% 10.2% 15.6% 9.0% 13.9% 15.1% 8.9% 3.7% Change yoy in % - pre-currency 23.8% 9.1% 14.8% 11.0% 15.8% 8.5% 13.9% 14.2% 8.4% 5.5% Change yoy in % - lfl (LC) % 0.9% 4.6% -1.4% 3.0% 2.6% -2.1% -0.4% EBITDA Change yoy in % 17.9% -1.9% 17.0% 17.6% 20.8% 11.0% 14.4% 5.4% - 1.4% EBITDA margin 4.9% 4.4% 4.5% 4.8% 5.0% 5.1% 5.1% 4.7% 4.4% 4.3% EBIT* Change yoy in % 17.8% -16.1% 27.0% 24.3% 25.5% 12.8% 15.2% 3.9% - 0.8% EBIT margin 3.6% 2.7% 3.0% 3.4% 3.7% 3.8% 3.9% 3.5% 3.2% 3.1% Capital Employed RoCE % 76.4% Capex * until 2003: EBITA Operating Statistics Number of stores Selling space (1,000 sqm) ,129 1,307 1,514 1,704 1,914 2,213 2,439 2,633 Change yoy in % 16.9% 14.6% 15.6% 15.8% 15.8% 12.6% 12.3% 15.6% 10.2% 8.0% Average store size (sqm) 2,714 2,735 2,925 2,999 3,010 3,054 3,082 3,152 3,176 3,219 Sales/Øsqm ( ) 9,638 9,126 9,105 8,671 8,656 8,270 8,379 8,454 8,166 7,765 20,000 17,500 15,000 12,500 10,000 7,500 5,000 Sales and EBITDA Margin Ø+11.1% p.a Sales ( million) EBITDA margin 2009 Regional Sales Breakdown Eastern Europe 10% 46% Germany 7% 6% 5% 4% 3% 2% 1% 0% Western Europe 44% 24

26 Galeria Kaufhof Financials ( million) * 2009* Sales 3,941 3,971 3,900 3,819 3,768 3,575 3,609 3,556 3,607 3,539 Change yoy in % -1.5% 0.8% -1.8% -2.1% -1.3% -5.1% 0.9% -1.5% -1.1% -1.9% Change yoy in % - lfl 0.1% -3.7% -4.5% -2.2% -1.2% -4.8% -0.6% -1.7% -1.4% -2.2% EBITDA Change yoy in % 10.2% 7.9% -16.3% -14.7% -19.9% -5.4% 1.8% 10.0% - 0.2% EBITDA margin 8.2% 8.8% 7.5% 6.5% 5.3% 5.3% 5.3% 5.9% 6.2% 6.3% EBIT** Change yoy in % 10.5% 4.8% -26.8% -28.4% -43.6% 21.8% 18.1% 31.3% - 3.4% EBIT margin 4.6% 4.8% 3.6% 2.6% 1.5% 1.9% 2.3% 3.0% 3.2% 3.4% Capital Employed RoCE % 15.2% Capex * New segment reporting structure; since 2009 including Dinea ** until 2003: EBITA Operating Statistics Number of stores Selling space (1,000 sqm) 1,319 1,440 1,456 1,457 1,473 1,465 1,487 1,486 1,489 1,501 Change yoy in % 1.6% 9.1% 1.1% 0.1% 1.0% -0.5% 1.5% -0.1% 0.2% 0.7% Average store size (sqm) 9,995 9,728 9,706 9,847 10,018 10,318 10,473 10,539 10,567 10,645 Sales/Øsqm ( ) 3,011 2,879 2,693 2,622 2,572 2,434 2,445 2,392 2,363 2, Western Europe EBITDA and EBIT Margin % EBIT margin EBITDA 2009 Regional Sales Breakdown 5% 4% 3% 2% 1% 0% 91% Germany 25

27 Real Estate Financials ( million) EBITDA Change yoy in % - 3.4% EBIT Selling Space by Region Western Europe 33% Change yoy in % - 2.4% Capital Employed 8,856 8,690 RoCE 6.1% 6.3% Capex 1, Germany 23% 9% 35% Asia/Africa Eastern Europe 26

28 Number of Stores by Division and Country Metro Cash & Carry Real Media Markt and Saturn Galeria Kaufhof Other METRO GROUP Q2 H1 30/06/10 Q2 H1 30/06/10 Q2 H1 30/06/10 Q2 H1 30/06/10 Q2 H1 30/06/10 Q2 H1 30/06/10 Germany Austria Belgium Denmark 5 5 France Italy Luxemburg 1 1 Netherlands Portugal Spain Sweden Switzerland United Kingdom Western Europe Bulgaria Croatia 6 6 Czech Republic Greece Hungary Kazakhstan 1 1 Moldova 3 3 Poland Romania Russia Serbia 5 5 Slovakia 5 5 Turkey Ukraine Eastern Europe China Egypt India 5 5 Japan 6 6 Morocco 8 8 Pakistan 5 5 Vietnam 9 9 Asia/Africa Total ,112 27

29 Shape Special Items of c. 650 million Expected Shape Special Items Special Items by Division [ ] million (EBIT) 343 Other 20% 237 Real Estate 9% Galeria Kaufhof 16% Metro Cash & Carry 51% >170 Media Markt and Saturn 1% Real 3% <130 Special Items by Type [ ] Other Concept 10% adjustments 17% 34% Personnel E 2011 E 39% Closures 28

30 New Metro Cash & Carry Organisational Structure Prerequisite for further Successful Execution of Shape J. Saveuse* F. Muller Europe/MENA Asia/New Markets Germany Austria Belgium Denmark France Italy Netherlands Portugal Spain UK Bulgaria Croatia Czech. Rep. Greece Hungary Moldova Poland Romania Serbia Slovakia Turkey Egypt Morocco Purchasing Supply Chain Private Label Expansion.... Asia China India Japan Pakistan Vietnam CIS Russia Kazakhstan Ukraine Key Priorities Turnaround Germany Private Label Delivery Services Field Force Key Priorities Tap expansion opportunities in Asia Improve capital efficiency of new store openings * also responsible for Real 29

31 Long-Term Debt Maturity Profile Bonds million Issued Maturity Nom. Outstanding ( ) Currency Coupon 1,250 08/09/ /09/ ,000,000 EUR FRN 1,000 26/05/ /05/ ,000,000 EUR 4.625% /06/ /06/ ,000,000 EUR 3.625% 29/05/ /05/ ,000,000 EUR 4.750% /07/ /07/ ,800,000 RON % /11/ /11/ ,000,000 EUR 9.375% 14/07/ /07/ ,000,000 EUR 5.750% /03/ /03/2015 1,000,000,000 EUR 7.625% Promissory Notes (Schuldscheindarlehen) 22/02/ /02/ ,000,000 EUR 4.250% Bonds Refinancing already completed Dependency on bank financing further reduced Well-balanced maturity profile 30

32 Contact METRO GROUP Investor Relations Schlueterstrasse Duesseldorf Germany Tel.: +49 (0) Fax: +49 (0) Internet: investorrelations@metro.de 31