German Investment Seminar Dr Eckhard Cordes, CEO New York, 13 January 2010
Disclaimer This presentation contains forward-looking statements which 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 to differ materially from those expressed in these materials. Many of these risks and uncertainties relate to factors that are beyond METRO Group s ability to control or estimate precisely, such as future market and economic conditions, the behaviour of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated synergies and the actions of government regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. METRO Group does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials. This presentation merely serves the purpose of providing information. It neither represents an offer for sale nor for subscription of securities in any country including the USA. This presentation does not include an official offer of shares; an offering circular will not be published. This presentation is not allowed to be reproduced, distributed or published without prior agreement of METRO Group. Note This presentation contains preliminary and unaudited sales figures for Q4 2009 and the financial year 2009. All numbers are before special items, unless otherwise stated. Please note that new accounting standards, especially with regard to the segment reporting, have been applied. 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
Trading Statement 2009 Q4 2009: Pre-currency Group sales on prior year s level Good Christmas trading; tangible sales trend improvement in December International sales grew by +0.3% (pre-currency) FY 2009: Group sales grew by 0.2% (pre-currency) EBIT in line with market expectations Outlook 2010: Still challenging environment Capex budget increased to 1.9 billion Store expansion programme significantly ramped up FY 2009 Sales (pre-currency) -0.6% +0.3% Germany 40% Asia/Africa 4% Western Europe 32% Eastern Europe 24% +0.5% +1.4% 7.8 Quarterly Sales Development (pre-currency in %) 1.1 7.3 0.0 6.2-0.1 2008 3.8 Q1 Q2 Q3 Q4-0.1 2009 2
Group Strategy of Profitable Growth Customer orientation Positioning and International Expansion New leadership model Undivided responsibility for the sales divisions in the operational business Streamlined organisational structure for finance and compliance strengthened humanresources focus Real estate portfolio as a profit centre Strict management through central return targets Efficiency 3
EBIT Potential of 1.5 billion Implementation of efficiency- and value-enhancing programme Shape 2012 well on track Decentralised organisation structure in place 800 million in cost reductions to be largely effective in 2011 and reflect ~8% of the total cost base 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 50 700 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 4
98% of 2012 Shape Targets Substantiated with Measures until Q3 2009 Target achievement of 2012 METRO Group Shape targets 100% 98% 29% Implementation Level 1 (Idea) 56% 17% Implementation Level 2 (Evaluated) 30% Implementation Level 3 (Approved) 15% Implementation Level 4 (Implemented) 0% 7% Implementation Level 5 (Effective) 31/03/2009 30/06/2009 30/09/2009 5
Metro Cash & Carry Leading global Cash & Carry wholesaler Matchless international expansion: international share of sales above 80% 668 stores in 30 countries worldwide High operating RoCE (2008: >20%) due to capital efficient model Strengthening private label ranges: increase of sales share to 20% targeted Q4 2009: trend improvement in like-for-like sales in Germany and Western Europe; continued pressure on non-food sales in Eastern Europe l-f-lgrowth Local currency sales growth (in %) 8.1 2008 2009 6.3 5.9 2.2 5.6-4.5 3.3-4.2 2.7-5.4-1.1-5.6-1.8-1.7-2.6-3.6 Q1 Q2 Q3 Q4 6
Strategy: Regionally Differentiated and Customer Focused B2B Specialist Emerging Markets Selected expansion for future growth Focus: Asia, Eastern Europe Growth to Mature Markets Differentiated sales approach: Evolve business towards core demand customers Developed Markets Focused B2B specialist 7
Format Innovation: Examples P18 Paris, France Inner city location with dedicated HoReCa focus Opened in October 2008 3,000 sqm selling space on 3 storeys Metro Drive Rodez, France Rapid expansion model to cover cities without further store potential Opened in October 2009 and managed by Toulouse store Online catalogue for food & non-food assortment Makro Punkt Tarnow, Poland Satellite store supplied mainly by mother store with dedicated Trader focus Opened in October 2009 8
Real Leading player in Germany s hypermarket sector Successfully established in Poland, Turkey, Russia, Romania and Ukraine Q4 2009: Broadly stable like-for-like sales development Positive sales growth in all Eastern European countries (pre-currency) EBIT margin target of 2-3% l-f-lgrowth Local currency sales growth (in %) 7.0 5.9 5.1 3.2 1.3 5.3-1.4 5.3 2.3 5.1-0.4-0.6 2008 2009 3.7 1.0 2.2-0.3 Q1 Q2 Q3 Q4 9
Real s Success Story in Eastern Europe Established in five Eastern European countries Poland Russia Ukraine ~ 320 million Eastern European share of sales amounts to c.25% in 2009 Leading market positions: #1 in Poland within the hypermarket and superstore segment #3 in Romania 1998 2006 1997 2005 2009 Sales in million Turkey Romania Real Eastern Europe 2000-2009 2,885 Cumulated country population 2009: +12.5% in LC 2,296 858 932 843 782 830 966 1,327 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 30 31 31 34 34 40 71 85 96 108 # of stores 10
25% Private Label Share of Food Sales Targeted FY 2008 Share of Sales* FY 2009 Share of Sales* Target Share of Sales Best 0.5% 0.6% ~3% Better 6.5% 7.3% ~14% Good 7.5% 7.8% ~8% * includes private labels still to be replaced 11
Media Markt and Saturn Pan-European market leader; largescale, full assortment consumer electronics retailer Entrepreneurial management and incentivisation structure Multi-channel model to complement store business and leverage brand strength Chinese joint venture with Foxconn signed (75:25); first stores to open in 2010 Q4 2009: Pre-currency sales growth in all regions; like-for-like sales growth in Germany and Western Europe l-f-lgrowth Despite difficult market environment strong market share gains Local currency sales growth (in %) 13.0 10.1 8.4 7.4 6.7 5.1 5.1 1.3-1.9 1.3-0.6-4.3-4.3 1.0-1.7 0.1 2008 2009 Q1 Q2 Q3 Q4 12
Market Share Gains across All Countries Market share by country Market Position Jan.-Oct. 2009 -points Austria # 1 24.1% +2.1% Hungary # 1 19.6% +3.7% Germany # 1 19.3% +1.5% Poland # 1 18.1% +1.7% Italy # 1 14.9% +2.4% Netherlands # 1 14.4% +0.3% Luxemburg Newcomer 14.4% +12.4% Switzerland # 2 12.4% +1.0% Spain # 1 11.1% +0.9% Belgium # 1 10.0% +1.2% Sweden Early stage 9.0% +4.0% Greece # 2 8.8% +2.6% Portugal # 4 6.5% +0.6% Turkey Newcomer 2.6% +1.2% Russia Early stage 2.5% +1.0% France Relaunch 2.0% +0.0% Market shares Media Markt and Saturn Source: GfK 13
Galeria Kaufhof Qualified mid-market: Focus on customer value and relevant target groups (women aged 35+ & families) Lifestyle orientation: Sharper brand and private label portfolio, with clear trading-up rollout in all areas Q4 2009: good Christmas business in Germany; positive likefor-like sales development in December l-f-lgrowth Local currency sales growth (in %) 2008 2009-0.7-3.9-3.1 0.1-0.7-4.7-1.3-0.6 0.3-0.1-0.6-0.3-1.3 Good business but a non-core asset -1.9 1.3-0.6-2.9-4.3-4.3 1.0-1.7-0.3-3.8-4.2 Q1 Q2 Q3 Q4 14
Key Messages Portfolio of strong retail brands with diversified regional presence Efficiency- and value-enhancing programme Shape 2012 well on track METRO Group well positioned for future profitable growth 15
German Investment Seminar Dr Eckhard Cordes, CEO New York, 13 January 2010
Appendix
Appendix FY/Q4 Sales by Division and Region Q4 Q4 Change FY FY Change billion 2009 2008 LC lfl (LC) 2009 2008 LC lfl (LC) Metro Cash & Carry 8.4 9.2-8.7% -3.6% -5.6% 30.6 33.1-7.6% -2.5% -4.9% Real 3.2 3.3-1.8% 1.0% -0.3% 11.3 11.6-2.9% 1.3% 0.0% Media Markt and Saturn 6.5 6.3 3.7% 5.1% 0.1% 19.7 19.0 3.7% 5.5% -0.3% Galeria Kaufhof 1.2 1.2-0.3% -0.3% -0.6% 3.5 3.6-1.9% -1.9% -2.2% Other (incl. METRO AG) 0.1 0.1-39.8% - - 0.4 0.6-33.9% - - METRO Group 19.4 20.1-3.4% -0.1% - 65.5 68.0-3.6% 0.2% - Q4 Q4 Change FY FY Change billion 2009 2008 LC 2009 2008 LC Germany Western Europe (excl. Germany) Eastern Europe Asia/Africa METRO Group 8.1 8.1-0.7% -0.7% 26.5 26.7-0.6% -0.6% 6.3 6.2 1.1% 1.5% 20.9 21.0-0.3% 0.3% 4.6 5.2-12.5% -1.5% 15.8 18.1-12.8% 1.4% 0.5 0.6-8.0% 0.7% 2.3 2.2 4.7% 0.5% 19.4 20.1-3.4% -0.1% 65.5 68.0-3.6% 0.2% 18
Appendix Number of Stores by Division and Country Metro Cash & Carry Real Media Markt and Saturn Galeria Kaufhof Other (incl. METRO AG METRO Group Germany 124 333 375 126 59 1,017 Austria 12 34 46 Belgium 11 18 15 44 Denmark 5 5 France 91 32 123 Italy 48 99 147 Luxemburg 1 1 Netherlands 17 32 49 Portugal 11 9 20 Spain 34 61 95 Sweden 16 16 Switzerland 20 20 United Kingdom 30 30 Western Europe 259 322 15 596 Bulgaria 11 11 Croatia 6 6 Czech Republic 13 13 Greece 9 10 19 Hungary 13 22 35 Kazakhstan 1 1 Moldowa 3 3 Poland 29 54 53 136 Romania 24 24 48 Russia 52 15 20 87 Serbia 5 5 Slovakia 5 5 Turkey 14 14 16 44 Ukraine 25 1 26 Eastern Europe 210 108 121 439 China 42 42 India 5 5 Japan 6 6 Morocco 8 8 Pakistan 5 5 Vietnam 9 9 Asia/Africa 75 75 Total 668 441 818 141 59 2,127 19
Appendix Metro Cash & Carry: Figures at a Glance Sales and EBITDA margin Financials ( million) 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sales 21,032 22,726 23,972 25,093 26,442 28,087 29,907 31,698 33,143 Ø +5.8% p.a. Change yoy in % 8.0% 8.1% 5.5% 4.7% 5.4% 6.2% 6.5% 6.0% 4.6% 35,000 5.5% Change yoy in % - pre-currency 7.2% 8.8% 6.4% 7.7% 5.6% 4.4% 6.2% 5.7% 5.4% Change yoy in % - lfl (LC) - - 1.4% 1.6% 1.1% -0.3% 1.9% 2.2% 2.4% EBITDA 873 972 1,078 1,200 1,280 1,377 1,510 1,631 1,405*** Change yoy in % 9.9% 11.4% 10.9% 11.2% 6.7% 7.6% 9.6% 8.0% - EBITDA margin 4.2% 4.3% 4.5% 4.8% 4.8% 4.9% 5.0% 5.1% 4.2%*** 30,000 25,000 20,000 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% EBIT* 641 716 805 904 963 1013 1,111 1,243 1,138*** Change yoy in % 6.9% 11.7% 12.4% 12.3% 6.5% 5.1% 9.7% 11.9% - EBIT margin 3.0% 3.2% 3.4% 3.6% 3.6% 3.6% 3.7% 3.9% 3.4%*** Nopat 497 608 694 696 752 820 899 1,005 1,076 Operating Capital Employed** 2,264 2,446 2,706 2,743 3,142 4,122 4,148 4,334 4,844 Operating RoCE 22.0% 24.8% 25.6% 25.4% 23.9% 19.9% 21.7% 23.2% 22.2% 15,000 10,000 5,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sales ( million) EBITDA margin 2.0% 1.5% 1.0% 0.5% 0.0% Capex 577 839 750 737 619 900 880 859 979 * until 2003: EBITA ** excl. historical goodwill *** According to new segment reporting structure (former segment reporting structure: EBITDA: 1,728 million; EBITDA margin: 5.2%; EBIT: 1,328 million; EBIT margin: 4.0%) 2003 reduction of WACC from 7.3% to 6.5% 2008 regional sales breakdown Asia/Africa 6% 17% Germany Operating Statistics 2000 2001 2002 2003 2004 2005 2006 2007 2008 Number of stores 353 384 437 475 504 544 584 615 655 Selling space (1,000 sqm) 2,972 3,182 3,423 3,725 3,952 4,218 4,507 4,875 5,176 Change yoy in % 6.6% 7.1% 7.5% 8.8% 6.1% 6.7% 6.9% 8.2% 6.2% Average store size (sqm) 8,419 8,287 7,832 7,841 7,841 7,754 7,717 7,927 7,902 Sales/Øsqm ( ) 7,304 7,386 7,259 7,021 6,889 6,876 6,856 6,757 6,595 Eastern Europe 39% 38% Western Europe 20
Appendix Real: Figures at a Glance Financials ( million) 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sales 8,166 8,375 8,198 8,205 8,182 8,192 8,775 11,003 11,636 Change yoy in % 2.4% 2.6% -2.1% 0.1% -0.3% 0.1% 7.1% 25.4% 5.8% Change yoy in % - pre-currency 2.3% 3.0% -1.1% 1.2% 0.0% -1.2% 7.1% 25.0% 5.4% Change yoy in % - lfl (LC) - - -1.4% 0.1% -2.2% -4.7% -2.5% -0.1% 4.4% EBITDA 276 353 372 384 352-121 192 160 196*** Change yoy in % 13.6% 28.0% 5.3% 3.1% -8.3% - 45.4% -16.7% - EBITDA margin 3.4% 4.2% 4.5% 4.7% 4.3% -1.5% 2.2% 1.5% 1.7%*** EBIT* 138 202 228 242 219-2 19-16 10*** Change yoy in % 15.2% 46.0% 13.5% 5.9% -9.3% - - - - EBIT margin 1.7% 2.4% 2.8% 2.9% 2.7% 0.0% 0.2% -0.2% 0.1%*** Nopat 200 282 294 260 248 92 202 113 168 Operating Capital Employed** 3,886 3,605 3,430 3,696 3,732 3,684 5,667 4,547 4,273 Operating RoCE 5.1% 7.8% 8.6% 7.0% 6.6% 2.5% 3.6% 2.5% 3.9% Capex 323 248 160 174 110 255 854 345 415 * until 2003: EBITA ** excl. historical goodwill *** According to new segment reporting structure (former segment reporting structure: EBITDA: 212 million; EBITDA margin: 1.8%; EBIT: 21 million; EBIT margin: 0.2%) 2003 reduction of WACC from 7.3% to 6.5% 6,000 5,000 4,000 3,000 2,000 1,000 0 Operating CE and EBITDA margin 2000 2001 2002 2003 2004 2005 2006 2007 2008 Operating CE ( million) EBITDA margin 2008 regional sales breakdown Eastern Europe 25% 6% 5% 4% 3% 2% 1% 0% -1% -2% Operating Statistics 2000 2001 2002 2003 2004 2005 2006 2007 2008 Number of stores 276 277 278 289 306 328 442 434 439 Selling space (1,000 sqm) 2,006 2,016 2,019 2,078 2,135 2,242 3,158 3,103 3,148 Change yoy in % 0.6% 0.5% 0.1% 3.0% 2.7% 5.0% 40.9% -1.7% 1.4% Average store size (sqm) 7,267 7,279 7,262 7,192 6,977 6,835 7,145 7,150 7,171 Sales/Øsqm ( ) 4,058 4,165 4,063 4,005 3,884 3,743 3,250 3,515 3,723 75% Germany 21
Appendix Media Markt and Saturn: Figures at a Glance Financials ( million) 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sales 7,619 8,341 9,583 10,563 12,210 13,306 15,156 17,444 18,993 Change yoy in % 24.0% 9.5% 14.9% 10.2% 15.6% 9.0% 13.9% 15.1% 8.9% Change yoy in % - pre-currency 23.8% 9.1% 14.8% 11.0% 15.8% 8.5% 13.9% 14.2% 8.4% Change yoy in % - lfl (LC) - - 3.2% 0.9% 4.6% -1.4% 3.0% 2.6% -2.1% EBITDA 375 368 431 506 612 679 776 818 839 Change yoy in % 17.9% -1.9% 17.0% 17.6% 20.8% 11.0% 14.4% 5.4% 2.6% EBITDA margin 4.9% 4.4% 4.5% 4.8% 5.0% 5.1% 5.1% 4.7% 4.4% EBIT* 272 228 290 360 452 510 587 610 603 Change yoy in % 17.8% -16.1% 27.0% 24.3% 25.5% 12.8% 15.2% 3.9% -1.1% EBIT margin 3.6% 2.7% 3.0% 3.4% 3.7% 3.8% 3.9% 3.5% 3.2% Nopat 189 195 244 266 333 397 442 480 469 Operating Capital Employed** 609 803 1,066 1,198 1,086 1,590 1,844 2,065 2,345 Operating RoCE 31.0% 24.3% 22.9% 22.2% 30.6% 25.0% 24.0% 23.2% 20.0% Capex 267 264 350 229 261 315 370 463 411 * until 2003: EBITA ** excl. historical goodwill 2003 reduction of WACC from 7.3% to 6.5% Sales and EBITDA margin Ø +12.1% p.a. 20,000 17,500 15,000 12,500 10,000 7,500 5,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sales ( million) EBITDA margin 2008 regional sales breakdown Eastern Europe 12% 7% 6% 5% 4% 3% 2% 1% 0% Operating Statistics 2000 2001 2002 2003 2004 2005 2006 2007 2008 Number of stores 314 357 386 436 503 558 621 702 768 Selling space (1,000 sqm) 852 976 1,129 1,307 1,514 1,704 1,914 2,213 2,439 Change yoy in % 16.9% 14.6% 15.6% 15.8% 15.8% 12.6% 12.3% 15.6% 10.2% Average store size (sqm) 2,714 2,735 2,925 2,999 3,010 3,054 3,082 3,152 3,176 Sales/Øsqm ( ) 9,638 9,126 9,105 8,671 8,656 8,270 8,379 8,454 8,166 Western Europe 42% 46% Germany 22
Appendix Galeria Kaufhof: Figures at a Glance Financials ( million) 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sales 3,941 3,971 3,900 3,819 3,768 3,575 3,609 3,556 3,516 Change yoy in % -1.5% 0.8% -1.8% -2.1% -1.3% -5.1% 0.9% -1.5% -1.1% Change yoy in % - lfl 0.1% -3.7% -4.5% -2.2% -1.2% -4.8% -0.6% -1.7% -1.4% EBITDA 324 349 292 249 199 189 192 211 225*** Change yoy in % 10.2% 7.9% -16.3% -14.7% -19.9% -5.4% 1.8% 10.0% - EBITDA margin 8.2% 8.8% 7.5% 6.5% 5.3% 5.3% 5.3% 5.9% 6.2%*** EBIT* 181 190 139 99 57 69 82 107 118*** Change yoy in % 10.5% 4.8% -26.8% -28.4% -43.6% 21.8% 18.1% 31.3% - EBIT margin 4.6% 4.8% 3.6% 2.6% 1.5% 1.9% 2.3% 3.0% 3.3%*** Nopat 134 156 113 87 78 78 67 76 80 Operating Capital Employed** 2,280 2,256 2,121 1,921 1,733 1,519 1,354 985 974 Operating RoCE 5.9% 6.9% 5.3% 4.5% 4.5% 5.1% 4.9% 7.7% 8.2% Capex 167 202 120 104 120 96 151 107 124 * until 2003: EBITA ** excl. historical goodwill *** According to new segment reporting structure (former segment reporting structure: EBITDA: 217 million; EBITDA margin: 6.2%; EBIT: 113 million; EBIT margin: 3.2%) 2003 reduction of WACC from 7.3% to 6.5% 350 300 250 200 150 10 0 50 0 EBITDA and Capex 2000 2001 2002 2003 2004 2005 2006 2007 2008 EBITDA Capex 2008 regional sales breakdown Operating Statistics 2000 2001 2002 2003 2004 2005 2006 2007 2008 Number of stores 132 148 150 148 147 142 142 141 141 Selling space (1,000 sqm) 1,319 1,440 1,456 1,457 1,473 1,465 1,487 1,486 1,490 Change yoy in % 1.6% 9.1% 1.1% 0.1% 1.0% -0.5% 1.5% -0.1% 0.2% Average store size (sqm) 9,995 9,728 9,706 9,847 10,018 10,318 10,473 10,539 10,567 Sales/Øsqm ( ) 3,011 2,879 2,693 2,622 2,572 2,434 2,445 2,392 2,363 Western Europe 9% 91% Germany 23
Sales EBIT (before special items) Outlook Past 2009 ~ 6% 4% - 8% << medium-term target In line with market expectations Medium- Term > 6% > 8% Capex ~ 2.1 billion Max. 1.6 billion ~ 2.2 billion New store openings 30 40 0 15 60 70 ~ 20 ~ 10 ~ 50 ~ 40 ~ 15 > 70 2010 capex budget increased to ~ 1.9 billion 24
Contact METRO Group Investor Relations Schlueterstrasse 1 40235 Duesseldorf Tel.: +49 (0)211 68 86 1936 Fax: +49 (0)211 68 86 3759 Email: investorrelations@metro.de Internet: www.metrogroup.de 25