q1 2014/15 results presentation - archiv.metrogroup.de/assets/mag/documents/media/2015/media... ·...

Q1 2014/15RESULTS PRESENTATION10 February 2015

METRO GROUP, Q1 2014/15 Results Presentation / Innovation 10 February 2015 | © METRO AG 2015 1

2.1

-0.2-1.4-1.8-2.2

Q1 2014/15 HIGHLIGHTS.

Significant LfL growth of 2.1% driven by Media-Saturn and METRO Cash & CarryBest LfL growth in Christmas quarter for many yearsAll divisions with LfL growth in DecemberMarket share and position in many countries strengthenedSuccessful transformation progress continued:

Own brand share at 10.3% of salesDelivery sales: €0.7 billion (+10.8%)Online sales: €0.6 billion (+31%)

EBIT above prior year’s level if FX adjustedNet debt further reduced by €0.9 billion to €1.5 billionSale of MAKRO Cash & Carry Greece successfully closed

Q12010/11

Q12013/14

Q1 2011/12

Q1 2012/13

Q12014/15

Q1

2.1

Q4

0.7

Q3

1.7

Q2

-1.8

Q1

-0.2

2013/14 2014/15

Like-for-Like Sales Development in %

418276

-40

1,0241,0732013/14 2014/15

EBIT in € million

Q1 Q2 Q3 Q4 Q1

Like-for-Like Sales Christmas Quarter in %


APPRECIATION OF EBIT Q1 2014/15 (BEFORE SPECIAL ITEMS).

1,024

Q1 2014/15Q1 2013/14 (Comparable)

~1,013

Negative FX Impact

~60

Q1 2013/14

1,073

in € million


Q1 2014/15: SALES AND EBIT BY DIVISION.

6th consecutive quarter with LfL growth; EBIT on PY level if adjusted for FX Strongest LfL growth since Q1 2007; significant EBIT development driven bytop-lineLfL growth driven by strong Christmas business; EBIT development influenced by targetedmarketing investments and missing EBIT contribution from Real Eastern EuropeMild weather in October and November dampened LfL sales and led to higher price investments than usual

ChangeLike-for-Like

Change€ millionMETRO Cash & Carry 8.197 -3,6% 1,4% 540 ~480 481 1Media-Saturn 6.875 4,1% 3,8% 289 289 349 +60Real 2.231 -14,4% 0,9% 98 98 84 -13Galeria Kaufhof 993 -1,0% -1,4% 159 159 139 -20Others/Consolidation 15 - - -13 -13 -30 -17METRO GROUP 18.311 -2,2% 2,1% 1.073 ~1,013 1.024 +11

Sales Q1 2014/15

EBIT reported

Q1 2013/14

EBIT comparableQ1 2013/14

EBITreported

Q1 2014/15

Q1 2014/15vs Q1 2013/14comparable


Q1 2014/15 INCOME STATEMENT (EBIT TO EPS).

Net financial result improved due to lower net debt and interest level

Tax rate of 44.9% in line with FY guidance (Q1 2013/14: 46.1%)

€ million

Q1 2013/14

Q1 2014/15 ChangeEBIT 1,073 1,024 -49Net financial result -141 -115 +26EBT 932 909 -23Income Taxes -429 -408 +21Profit or loss for the period 503 501 -2Non-controlling interests 63 56 -7EPS in € 1.35 1.36 +0.01


Q1 2014/15: OTHER KEY FINANCIALS.

Net debt further reduced by €0.9 billion to €1.5 billion Net working capital and cash flow from operating activities almost on PY level due to the stable business developmentCapex of €176 million mainly invested in expansion and remodellings

€ million

Q1 2013/14

Q1 2014/15 ChangeNet debt (as at 31/12) 2,402 1,509 -893

Net working capital (as at 31/12) 4,603 4,551 -52Change in net working capital (cash flow impact) 2,288 2,357 +69

Cash flow from operating activities 3,5691 3,616 +47

Capex 273 176 -97

Number of new store openings 36 23 -13

1 Separate disclosure of cash and cash equivalents from disposal groups


METRO CASH & CARRY: HIGHLIGHTS Q1 2014/15.

Solid LfL growth driven by Eastern Europe and AsiaSigns of stabilization in Western Europe; most countries with positive LfL growthGermany slightly down due to the deflationary sales price development Delivery sales increased by 10.8% (around 9% of total sales)Own brand sales share 16%9 new store openingsSale of METRO Cash & Carry Vietnam on trackAll stores in Denmark closed; sale of MAKRO Cash & Carry Greece successfully completed

Q1

1.4

Q4

0.1

Q3

2.0

Q2

0.8

Q1

0.9

2013/14 2014/15


Q3

9.4

Q2

9.4

Q1

7.9 8.6

Q4

10.0

Q1

2013/14 2014/15

Delivery Sales Share in %


STRATEGIC UPDATE.

Implementation of new pricing strategy Price-performance ratio as key factor for customer loyaltyAnalysis and improvement of price perception vs price reality Transparency and stable prices to increase sales volume and profit

Continuation of successful marketing campaignsProject 51: METRO United

Special marketing offersSales promotion activities

You & METROBocuse d‘Or


MEDIA-SATURN: HIGHLIGHTS Q1 2014/15.

Strong LfL growth driven by all regionsSpain, Russia, Hungary and Poland with doubledigit LfL growthFurther dynamic growth in online sales (+28.7%),7.4% of total salesInternet product offering increased to around 90,000 SKUs at www.mediamarkt.de and around 80,000 SKUs at www.saturn.de13 new store openings

Q1

3.8

Q4

1.7

Q3

-0.2

Q2

-3.7

Q1

-1.0

2013/14 2014/15


512353328363403

Q3Q2Q1 Q1Q4

2013/14 2014/15

Online Sales in € million


STRATEGIC UPDATE.

New store concept IngolstadtNew ways of combining the on- and off-line activitiesExciting shopping experience on 3.400 sqmLarger product range and topic islandsNovelties (Drive-in, charging stations for smart phones and electric cars, a gigantic interactive video screen combination, interactive tariff advisor)

InnovationFirst Saturn store introduces 24-hour pickup stationLaunch of online stores on eBay (Media Markt listing over 52,000 electronic products and Saturn over 41,000 articles)


REAL GERMANY: HIGHLIGHTS Q1 2014/15.

3rd consecutive quarter of LfL sales growthStrong Christmas business driven by dry food, sweets and beverages50 remodelled stores continued to outperform; roll-out to another 32 stores in MarchOwn brand sales share in Germany 15.2%Around 50 stores will be switched to LED lighting to improve energy costs Cooperation with “Emmas Enkel” - a new food retail format

Q1

0.9

Q4

0.2

Q3

5.1

Q2

-6.6

Q1

-2.1

2013/14 2014/15

Like-for-Like Sales Development in Germany in %


GALERIA KAUFHOF: HIGHLIGHTS Q1 2014/15.

Market share gains in textile despite LfL declineMild weather prevented a better sales developmentWebshop with continued strong growth of 38.8%New store opening in Hasselt, BelgiumLaunch of new online shop in Belgium (www.inno.be)

-1.4

1.22.2

-1.9

0.6

2013/14 2014/15


Q1 Q2 Q3 Q4 Q1

0.8

3.1

1.2

Delta Galeria Kaufhof vs Textile Market – change vs. py in %

2013 2013/14 Q1 2014/15

-0.4

-6.3

-0.6

Textile Market – change vs py in %

2013 2013/14 Q1 2014/15


OUTLOOK 2014/15: FINANCIAL TARGETS.

€ billlion

ReportedFY 2013/14

GuidanceFY 2014/15

Sales growth1.2 +1.3% >0%

LFL sales growth +0.1% >0%

EBIT before special items 1.727 >1.7272

Capex 1.2 <1.7

Net debt 4.7 <4.7

Number of new store openings 68 ~501Adjusted for portfolio changes 2Based on constant foreign exchange rates


INNOVATION IS OUR CORE BUSINESSTHE CUSTOMER IS AT THE CENTRE

INNOVATION IS OUR CORE BUSINESSTHE CUSTOMER IS AT THE CENTRE

METRO GROUP, Q1 2014/15 Results Presentation / Innovation 10 February 2015 | © METRO AG 2015 14page 14

OUR GOAL IS …OUR GOAL IS …

METRO GROUP, Q1 2014/15 Results Presentation / Innovation 10 February 2015 | © METRO AG 2015 15page 15

OUR GOAL IS …… THE SUCCESS OF OUR CUSTOMERS

OUR GOAL IS …… THE SUCCESS OF OUR CUSTOMERS


THE CORE OF OUR STRATEGY.


THE DYNAMICS OF CHANGE ARE INCREASING!


DIGITISATION IS OPENING UP NEW OPPORTUNITIES FOR OUR CUSTOMERS.

Digital communication

Digital communication

Onlinereservations

Onlinereservations

New servicesNew services

Increase in efficiencyIncrease in efficiency

Social mediaSocial media

Product innovationProduct innovation SustainabilitySustainability


HOTELS AND RESTAURANTS IN WESTERN EUROPE: A HUGE MARKET POTENTIAL, BUT HARDLY DIGITAL.

MARKET POTENTIAL HOSPITALITY SECTOR

2 mnCompanies (hotels, restaurants, caterers)

€400 bnSales

€120 bnPurchasing volume

~35% without a website

~78% without presence at a bookingplatform

Digital toolswith underdeveloped use(food communities, paymentsolutions, etc.)

Source: MCC countries Western Europe, data exclude VAT

USE OF TECHNOLOGY


HOTELS AND RESTAURANTS IN WESTERN EUROPE: CHANCES THROUGH STRONG PARTNERS AND NEW TECHNOLOGY.

MARKET ACCESS METRO C&C

1.4 mnactive, registeredHoReCa customers

3,000 sales representatives

€6.5 bn sales hotels, restaurants and caterers

Source: MCC countries Western Europe, data exclude VAT

Foto-Collage aus unseren Mitarbeitern (positive Bildsprache, Beratung, Support für unsere Kunden etc.) sowie Technologie-Lösungen für HoReCa-Kunden (Delivery/Online-Bestellung etc.)


TECHSTARS METRO ACCELERATOR TRAILER.


TECHSTARS – A PIONEER IN INNOVATION.

Techstars is a mentorship-driven startup accelerator founded

by David Cohen, Brad Feld, David Brown, and Jared Polis.

Techstars holds 13 week programs for startups in 13 cities

worldwide.

Fewer than 1% of the companies that apply to Techstars are

accepted. Of the 500+ companies that have completed its

program, 89% are active or have been acquired.

Techstars mentors include Foursquare CEO Dennis Crowley,

tumblr CEO David Karp, HubSpot co-founder and CTO

Dharmesh Shah, and Fred Wilson of Union Square Ventures

http://www.edge-cdn.net/video_802815?playerskin=41328


“FAST FORWARD” WITH THE TECHSTARS METRO ACCELERATOR.

Seeking the best digital innovations for hotelsand restaurants.

Intensive start-up-bootcamp

Broad network of experienced mentors

3 prestigious partners

10 companies to be chosen

techstars METRO ACCELERATOR with R/GA

Berlin – 2015/2016


WHAT WE “BRING TO THE TABLE”.

Very strong EXPERTISE in HoReCaVery strong EXPERTISE in HoReCa

ACCESS TO CUSTOMERS ACROSS EUROPEACCESS TO CUSTOMERS ACROSS EUROPE

International NETWORK OF EXPERTSInternational NETWORK OF EXPERTS

Powerful SALESPowerful SALES

“PARTNERSHIP”“PARTNERSHIP”

Access to the INDUSTRYAccess to the INDUSTRY


NEW FORMAT FOR DIALOGUE: INNOVATION IN RETAIL MEETUP.

The new platform “Innovation in Retail Meetup” supports an exchange of experience and ideas about the latest innovations in retail between start-ups and METRO GROUP.

Entrepreneurs present their ideas and business models at the METRO Campus in Düsseldorf and then discuss these with other entrepreneurs, start-up experts and METRO representatives.

Creation of an active network addressing the question: HOW WILL RETAIL OF THE FUTURE LOOK?


COUNTRYPORTFOLIO

INNOVATION AND M&A ARE A CRUCIAL INGREDIENT FOR THE ENHANCEMENTOF OUR PORTOLIO.

GROUP STRATEGY

BUSINESS MODEL –PORTFOLIO

STRATEGICINITIATIVES


EVOLUTION AND REVOLUTION: UTILISING OUR STRENGTH.

100 mn customers p.a.80 mn customer cards (METRO Card & Payback)1.6 bn store visits, 900 mn online visits

2,200 stores with 13 mn sqm sales floor30 countries and > 60 websites and apps> 2 bn direct marketing contacts5,500 sales force representatives

~ 50 bn € purchasing volume100% of the important suppliers in ourcategories – with a global reach

Three decisive success factorsfor scaling new business models

Customer AccessCustomer Access

Marketing &Selling PowerMarketing &

Selling Power

SourcingSourcing

Founding Growing


Q&A

Mark FreseCFO

Olaf KochCEO

Q1 2014/15RESULTS PRESENTATION10 February 2015

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