MADE TO TRADE. Investor Update - Bankhaus Lampe 2 August 2013 MADE TO TRADE. Investor Update Bankhaus Lampe 2 August 2013 METRO AG 2013 0
Disclaimer and Notes To the extent that statements in this presentation do not relate to historical or current facts, they constitute forward-looking 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. The risks and uncertainties to which these forward-looking statements may be subject, include (without limitation) future market and economic conditions, the behaviour of other market participants, the ability to successfully transform the business model of METRO Cash & Carry, reorganise the management structure of METRO Cash & Carry, 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 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 AG. 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 2012. Since 1 January 2013, it is mandatory to apply the revised IAS 19. The previous option granted for actuarial gains and losses from defined benefit pension plans, which allowed these amounts to be recognised either immediately in the income statement, directly in equity or according to the so-called corridor method, has been abolished. The revised IAS 19 only allows for actuarial gains and losses to be recognised immediately in equity ( other comprehensive income ). The amounts collected in equity remain there and will not be reclassified to the income statement in subsequent periods. As a result, the income statement will in future remain unaffected by actuarial gains and losses. As METRO AG used the corridor method in the past, this resulted in a change of method. Another change concerns the fact that, in future, expected returns on plan assets will be determined using the discount rate used to measure the pension obligations. In addition, past service costs will in future be recognised fully in profit or loss during the period in which the respective plan changes were effected. The consolidated financial statements have been prepared in euros. All amounts are stated in million euros ( million) unless otherwise indicated. Amounts below 0.5 million are rounded and reported as 0. In contrast to the practice of past years, only the amounts in the income statement, the reconciliation from profit or loss for the period to total comprehensive income, the balance sheet, the statement of changes in equity and the cash flow statement were rounded to produce the respective totals. In all other tables, the individual amounts and the totals were rounded separately. This may entail rounding differences. 1
Fourth Largest Retailer Worldwide in 2012 Sales: 66.7bn EBIT: 2.0bn Cash Flow: 2.3bn Stores: 2,243 Countries: 32 Employees: 280,000 / 180 nations 2
4 OpCos, 1 PropCo & 1 Strategic Management Holding METRO AG The world s leading player in the cash & carry sector One of the leading operators of hypermarkets in Germany Europe s No. 1 consumer electronics retailer One of Europe s leading department store operators The most international portfolio in retail and wholesale 2012 Sales Share 2012 EBIT Share* * Pre Other and consolidation 3 3
Strong International Presence Germany Western Europe Eastern Europe Asia/Africa METRO GROUP Countries 1 11 14 6 32 2012 Sales Share 2012 EBIT Share 38% 30% 27% 5% 100% 26% 33% 43% -2% 100% We generate nearly one third of Group sales and more than 40% of total earnings in emerging markets 4
Active Portfolio Management in 2012 All shares of MAKRO UK and 30 freehold properties were sold on a debt- and cash-free basis to Booker (closed on 4 July 2012) for a 9.08% stake in issued share capital of Booker and 15.8m in cash Sale of Real s complete activities in Eastern Europe (excluding Turkey), including real estate for an enterprise value of 1.1bn to Groupe Auchan Discontinuation of Media Markt in China after the two-year test phase expired in December 2012 and closure of all stores as per beginning of March 2013 Transforming the Group further and focusing on what really matters 5
Q2 2013 Highlights Sales grew by 0.1% (adjusted for portfolio changes and FX) despite difficult consumer environment Sales Development in million 2012 2013 19.359 Real Russia closed Market share gains in many countries 15.647 15.846 15.887 15.499 15,282 Transformation progress continued: Own brand sales share: 12.1% (+40bp) Delivery sales: 0.7 billion (+22%) Q1 Q2 Q3 Q4 Q1 Q2 Online sales: 0.3 billion (+89%) Solid EBIT development: 362 million EBIT after special items EBIT in million 2012 2013 1,273 276 million EBIT before special items Significant net debt and cash flow 315 399 276 improvement Sales and EBIT guidance confirmed 14-8 Q1 Q2 Q3 Q4 Q1 Q2 6
Q2 Sales and EBIT by Division Sales Like-for-Like EBIT Change Change million million Q2 2013 Change Q2 2013 METRO Cash & Carry 7,716-3.0% -0.9% 241-2.5% -6 Real 2,360-11.5% -4.6% -2 - -19 Media-Saturn 4,525-0.3% -3.0% -94-60.4% -35 Galeria Kaufhof 679-1.0% 0.6% 4 >100% 3 Real Estate - - - 151 3.3% 5 Others 3-51.7% - -19 46.5% 17 Consolidation - - - -3 >-100% -2 METRO GROUP 15,282-3.6% - 276-12.4% -39 METRO Cash & Carry: LFL sales trend improved in both Western and Eastern Europe despite still tough trading conditions, especially for non-food Real: German LFL sales burdened by earlier Easter and strike activities Media-Saturn: Tough UEFA EURO comp in Germany, sequential improvement in Western Europe continued Galeria Kaufhof: Further LFL sales growth in Germany; market leadership attained Real Estate: 3 portfolio transactions in Germany and Turkey supported EBIT development Others: Enhanced cost savings led to significant improvement year-on-year 7
Other Key Financials million 30/06/2012 30/06/2013 Change Net debt -8,206-6,319 23.0% Net working capital -1,693-1,825 7.8% Cash flow from operating activities -2,913-2,630 9.7% Cash flow from investing activities -449 523 - Capex (YTD) 555 297-46.5% Number of new store openings (YTD) 28 22-21.4% Significant net debt reduction of 1.9 billion to 6.3 billion Net working capital improvement of 132 million Increase in cash flows from: Operating activities: 283 million Investing activities: 972 million More focused capex: 22 new store openings, thereof 17 in emerging markets 34 stores closed or sold 8
Outlook for Stub Year 2013 (9M) Confirmed milllion H1 2012 H1 2013 9M 2012 Stub FY 2013 E Sales growth (in %) 1 0.1 - >0 EBIT before special items 307 2 290 706 2 >706 3 Capex 555 297 954 <954 Net debt (in billion ) -8.2-6.3 7.7 <7.7 New store openings (number of) 32 22 40 30-40 1 Adjusted for sale of MAKRO UK, Real Eastern Europe and Media Markt China 2 Adjustment resulted from the first-time adoption of the revised IAS 19 3 Incl. higher contribution from real estate gains vs 9M 2012 Despite challenging economic environment we remain on track to achieve our targets 9
Contact Investor Relations Metro-Straße 1 40235 Düsseldorf Germany Tel.: +49 (0)211 6886-1051 Fax: +49 (0)211 6886-3759 Email: investorrelations@metro.de Internet: www.metrogroup.de 10