Q1 2020/21 RESULTS PRESENTATION - 11 Feb 2021 - Investor Relations
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Q1 2020/21 RESULTS PRESENTATION 11 Feb 2021
DISCLAIMER AND NOTES To the extent that statements in this presentation do not relate to historical or current facts, they constitute forward-looking statements. All forward-looking statements herein are based on certain estimates, expectations and assumptions at the time of publication of this presentation and there can be no assurance that these estimates, expectations and assumptions are or will prove to be accurate. Furthermore, the forward- looking statements 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 AG's ability to control or estimate precisely. The risks and uncertainties which these forward-looking statements may be subject to include (without limitation) future market and economic conditions, the behavior of other market participants, 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 AG 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 and should not be treated as investment advice or recommendation. It is not, and nothing in it should be construed as an offer for sale, or as a solicitation of an offer to purchase or subscribe to, any securities in any jurisdiction. Neither this presentation nor anything contained therein shall form the basis of, or be relied upon in connection with, any commitment or contract whatsoever. This presentation may not, at any time, be reproduced, distributed or published (in whole or in part) without prior written consent of METRO AG. Not all figures included in this presentation have been audited and certain figures may also deviate substantially from information in the consolidated financial statements of METRO AG, thus, may not be fully comparable to such financial statements. This presentation includes supplemental financial measures which are or may be non-GAAP financial or operative measures. These measures should not be viewed in isolation as alternatives to financial measures presented in accordance with IFRS. Other companies that disclose similarly titled measures may calculate them differently. All amounts are stated in million euros (€ million) unless otherwise indicated. Amounts below €0.5 million are rounded and reported as 0. Rounding differences may occur. 2 02/11/2021
PRESENTING TODAY
Christian Baier Rafael Gasset
CFO COO
(ad interim) Co-CEO (ad interim) Co-CEO
3 02/11/2021
Q1 UPDATE
Teams Delivering best availability and relevant HoReCa
solutions results in improved NPS
Improved +6%pp
Availability NPS for HoReCa
Despite external challenges and +4%pp overall
Market outperformance in key Western European markets
Germany Italy
Up to 7%pp Up to 4%pp
Outperformance Outperformance
“…I owe it to Sandra for the fact that
she called me to ask how it was going Progress in:
and how it makes sense to start
• Capturing and “seizing opportunities”
preparing for the reopening...
• Embarking on value accretive acquisitions and focusing on
Customer from Italy leaner wholesale cost structure in headquarter and countries
4 02/11/2021
01 FINANCIAL UPDATE 5 02/11/2021
SALES TO EBITDA
€m / % Q1 2019/20 Q1 2020/21 Sales growth
Total sales 7,548 6,337 • Sales development driven by mix of governmental
restrictions and composition of customer sales
Like-for-like growth 1.0% -11.3%
• Strong December; Germany benefited from SCOs in run up
Growth in local currency 1.0% -11.2%
to Christmas
Reported growth 2.2% -16.0% • Reported sales growth affected by negative currency
Delivery sales share 16% 13% development mainly in Russia and Turkey
Adj. EBITDA1
1
526 376 EBITDA and EBITDA margin
• EBITDA was impacted by volume reduction; improved
thereof FX -36 performance vs. COVID-19 affected Q3 2019/20
Adj. EBITDA margin 7.0% 5.9% • “Others” benefited from cost savings, license fee3 and
conclusion of the arbitration proceedings with Hudson’s Bay
Transformation costs 0 -2 Company (HBC)4
Real estate gains 1 25 • Real estate gains resulted mainly from the sale of the last
Reported EBITDA2 527 399 real hypermarket property
1Adj. EBITDA - EBITDA pre transformation costs and real estate gains 2 Reported EBITDA – Including transformation costs and real estate gains 3 Part of the transaction includes the license fee paid by Wumei for use of brand over the next
two years; reported in segment ‘Others’ 4 The finalization of litigation coupled with a change in risk provision from completed transaction made a positive contribution in sum of around €10 million
6 02/11/2021
REGIONAL SALES DEVELOPMENT
Customer split Q1 2020/21
Simplified view
(rounded, in %, FY19/20)1 Total sales direction Customer sales development
HoReCa Trader SCO
Russia 14 % 31 % 55 %
HoReCa: Trader: stable SCO: hard
Eastern 31 % 33 % 36 %
Europe development development in lockdowns with
strongly impacted Eastern Europe, retail closures and
Germany 42 % 13 % 46 % by the lockdown while Russia and customers
in Western Europe Romania grew by rediscovering
and Germany >20%3 and >15%3 METRO benefited
Asia 34 % 36 % 29 % SCO sales
Sales to PY4 Sales to PY4 Sales to PY4
Western
60 % 17 % 23 % -35% +1% +13%
Europe
1 FY19/20 based on LFL stat. adj. sales 2 Full Trader sales 3 Total statistical sales Q1 2020/21 (excl. discounts,
7 02/11/2021 HoReCa Trader2 SCO vouchers etc.) 4 Total sales in local currency
SUCCESSFUL CUSTOMER SUPPORT THROUGHOUT
PANDEMIC
FY19/20 – first wave of FY20/21 – second wave of
governmental restrictions governmental restrictions
3 1 Playbook from 1st lockdown:
• High availability in stores
LFL Sales -18% -11%
All customer groups • Reduced min. order size in FSD
• Regular contact
HoReCa is less impacted
• Small decline in Buying Customers
-47% -35%
HoReCa Sales1 • Frequency and Average basket are
under pressure
1 Q1 HoReCa sales is Total Sales growth in local currency; other numbers are LFL sales growth
8 02/11/2021
RESTRICTIONS AFFECT THE INDUSTRY; METRO IS
CONTINUOUSLY PERFORMING ABOVE MARKET
% METRO Germany % METRO France % METRO Italy
CREST Panel
Up to 7%p.p Up to 4%p.p Up to 4%p.p
Q1 19/20 Q2 19/20 Q3 19/20 Q4 19/20 Q1 20/21 Q1 19/20 Q2 19/20 Q3 19/20 Q4 19/20 Q1 20/21
Q1 19/20 Q2 19/20 Q3 19/20 Q4 19/20 Q1 20/21
NPD METRO HoReCa Food
outperformance
During Lockdown During Recovery
Drivers for
Kept regular customer contact and high product availability High product availability as the recovery continued
Adjusted assortment to meet the new needs Dedicated re-start support programs (e.g. makroplus)
Engaged with government and associations Digital tools enabling a cost efficient restaurant business
(e.g. Dish Toolkit)
9 02/11/2021 Sources: The NPD Group Inc. / CREST© Consumer Panel for market development, Internal for sales development
Eurostat data is not yet released for the selective quarter
REGIONAL PERFORMANCE 1
HoReCa Trader SCO 1 1
42% 42%
60%
Germany 13% 23% Western Europe 17%
€m / % Q1 2020/21 €m / % Q1 2020/21
2,0%
Sales 1,287 1,0% Sales 2,237
Growth in local currency -4.5% Q1 2019/20 Q1 2020/21 Growth in local currency -23.7%
Reported growth -4.4% Reported growth -23.7%
2
Adj. EBITDA 67 2
94
Adj. EBITDA
EBITDA margin 5.2%
-11,2% EBITDA margin 4.2%
-12,2%
Constant FX to PY -9 Constant FX to PY -111
Growth in local currency thereof Food
1 1 1
14%
31% 34%
Russia 31%
Eastern Europe 33% Asia 36%
€m / % Q1 2020/21 €m / % Q1 2020/21 €m / % Q1 2020/21
Sales 677 Sales 1,728 Sales 404
Growth in local currency 6.3% Growth in local currency -3.5% Growth in local currency -5.2%
Reported growth -17.5% Reported growth -12.5% Reported growth -13.4%
2 2 2
Adj. EBITDA 69 Adj. EBITDA 103 Adj. EBITDA 10
EBITDA margin 10.2% EBITDA margin 6.0% EBITDA margin 2.4%
Constant FX to PY 1 Constant FX to PY -3 Constant FX to PY -1
1 FY19/20 based on LFL stat. adj. sales 2Adj. EBITDA - EBITDA pre transformation costs and real estate gains
Note: Transformation costs affect segment “Others”
10 02/11/2021EBITDA TO EPS
€m Q1 2019/20 Q1 2020/21 EBIT
Reported EBITDA 527 399 • Decrease in line with EBITDA decrease, stable depreciation
D&A -200 -199 Net financial result
• Improvement in the interest and investment result is mainly
EBIT 327 200
due to lower interest from finance leases
Interest and investment Tax
-55 -42
result
• Tax expense is calculated based on expected tax expense for
Other financial result 4 1 FY20/21
Net financial result -51 -42 • Tax expense for FY20/21 is expected to be roughly on
FY19/20 level (€-108 m in FY19/20)
EBT 276 159
EPS
Tax expense -152 -56 • EPS is driven by reduced sales volume and adverse FX
Net income 121 99 development which was partially compensated by lower tax
expense and higher real estate gains
EPS in € 0.33 0.27
11 02/11/2021FCF IN Q1 2020/21
€m / % Q1 2019/20 Q1 2020/21 Leases
• Improvement is due to lease income from Real, as well as
Adj EBITDA1 526 376
lower lease payouts resulting from expired contracts
Leases -129 -117
Change in NWC
Adj EBITDA1 after leases 398 258 • Decline is driven by negative effects from COVID-19,
Change in NWC 47 -149 especially affecting Western Europe
Cash Investments2 -63 -46 Cash Investments
FCF 382 63 • Savings due to reduced investment in light of COVID-19
Net debt (31 Dec) 5,012 3,764 Net debt
• €1.2 bn improvement in net debt as a result of disposal of
the majority stake in METRO China and the hypermarket
business in Q3 2019/20
• Strong liquidity position at calendar year end
• S&P confirmed 'BBB-/A-3’ despite “prolonged hospitality-
sector disruptions”
1Adj.EBITDA - EBITDA pre transformation costs and real estate gains. 2 Cash Investments = Capex (excl. M&A) - Right of Use Assets + Financial Assets + Down payments/Prepayments. Cash investments definition has been
changed due to IFRS 16 to reflect the cash view.
12 02/11/202102 STRATEGY UPDATE 13 02/11/2021
Expanding our role from high quality products supplier to a
360° partner
BY…
Being lean and fast in adapting to the changes
while capturing opportunities and consolidating markets
and creating long-term value through our sustainability focus
14 02/11/2021FOCUS ON LEAN WHOLESALE AND PROACTIVE
APPROACH ON CONSOLIDATION OPPORTUNITIES
Strengthening METRO’s IT capabilities and Acquisition of an FSD player Acquisition of 25% of FilProMer
gaining efficiencies via strategic partnership Makro Spain METRO France
€35 m >4,000
sales 2019 Customers nationwide
Building a high-performance IT Strengthening METRO’s leading Acquiring ~25% in a fish
organization designed to support position in Spain and entering into processing company in France
Wholesale 360 a long-term supply agreement
• Enables to jointly develop
• Parts of the IT organization will be • Strong presence in the Canary and solutions for restaurants’ take-
acquired by Wipro; the new Balearic Islands away and delivery operators
founded METRO.digital will drive • Exclusive rights in Spain to Sysco • Successful cooperation over the
key innovations under Wholesale France’s product assortment last 16 years
360 approach (elaborate or ready-to-eat frozen
• Wipro will focus on the basic products)
backbone systems and technical
operations of the infrastructure
(i.e. merchandise management) [For more information, please refer to the
slide in appendix]
Press Release Dec ‘20 Press Release Dec ‘20 METRO France Press Release Jan ‘21
15 02/11/2021CAPTURING AND “SEIZING OPPORTUNITIES”
“PROTECT” “PRESERVE” “ GROW”
“Seize OPPORTUNITIES”
Competitive environment
Redefined commercial activities to better
match to the new demand patterns
Digital world
~50% of all orders1 in METRO are already
online
1 Customer orders made through MSHOP for FY19/20 increase to ~50% from 20% in FY16/17
16 02/11/2021HORECA: PREPARING FOR THE RESTART
#restartgastro #makroplus
METRO Germany MAKRO Spain
Makroplus: Customized
Gaining market share through
proposal based on mutual
selected attack initiatives
commitment
Improved payment terms Developing long-term
Discount for initial restocking relationships through high
Gastro hotline service standards
~14,000 +8%pp
New C&C Improvement in >9,000 ~€20m
HoReCa HoReCa NPS Customer Incremental sales
Customers using since June
since June MAKROPlus
~3,200
New FSD
HoReCa
Customers
since June
17 02/11/2021TRADER: SEIZING OPPORTUNITY IN OMNICHANNEL
METRO Romania METRO Russia
Trader Franchise Wholesale
LaDoiPasi (LDP) - largest and Reducing COGS, improving
fastest growing Convenience logistics and growing sales
chain in Romania
1,382 +22% +3%
Franchise partners in Trader SCO
Dec’20 [+319 to PY] Total Sales Q1 Total Sales Q1
Our partner’s long-term Digital traders
revenue evolution continues
to improve after joining LDP Profitable partnerships with
Sbermarket, iGoods and others
3 years with 15% in sales to PY Online sales in Q1
Refer to the appendix for the pictures of LDP before and after Refer to the appendix for the pictures of the New Fasol 2.0
18 02/11/2021EXPANDING OUR ROLE TO A 360° PARTNER WITH
SERVICES AND SOLUTIONS
Strategic initiative which METRO started ~8 years ago
FINANCIAL SERVICES TO SUPPORT OUR
Products CUSTOMERS
Large hospitality base + historic shopping data
results in the superior insights on credit scoring
and limit calculations
• METRO Risk Check (MRC): a corporate tool for credit
granting, credit check and limit calculation
• MRC limits authorization workflow, decreases
complexity
• Rolled out in 12 countries, with all other remaining
countries to come
Market-
place Opportunistic solution during COVID-19 to temporarily support customers
“Seizing opportunities” in Italy in times of need
10,000 0%
Customers approached Interest rate for the
in Italy customers
19 02/11/2021EXPANDING OUR ROLE TO A 360° PARTNER WITH
SUSTAINABILITY EXPERTISE
Climate action Driving change Community
involvement
The CDP A-list rating Partnership in our value Global partnership with
acknowledges METRO’s chain is a key driver of World Food Program
ambition in its science- METRO’s engagement to supporting with donations
based target to transform critical & employee volunteering
protecting the climate industries. sharing wholesale
and the environment. knowledge
Engaged 170 suppliers
METRO has already on critical topics Climate Launched dedicated
achieved 34.3% of the Change, Water Security donation platform to
target it set itself in and Forests by CDP allow METRO employees to
2011. Supply Chain. stop hunger
20 02/11/2021IN A NUTSHELL
Good quarter as a result of extraordinary efforts of our teams. We have once again delivered high availability
in stores and relevant solutions to support our customers
Lean operations is a prerequisite for our business, while we increase our customer reach and relevance
organically as well as through acquisition opportunities
We are managing this crisis for a strong position long-term while navigating successfully for the short-term
quarterly volatility and continuously gaining market share
H1 will be impacted by the restrictions, while we expect H2 to benefit from the overall better environment
We confirm the guidance and our positive long-term view on the sector is unchanged
21 02/11/2021Q&A
Christian Baier Rafael Gasset
CFO COO
(ad interim) Co-CEO (ad interim) Co-CEO
22 02/11/2021EVENTS AND FINANCIAL CALENDAR
Upcoming Financial
events calendar
2020/21
30 Mar 2021 BofA Securities ESG 19 Feb 2021 AGM1
Consumer & Retail Con-
4 May 2021 Q2 2020/21
ference
(Report: 6.30 pm)
31 Mar 2021 Jefferies Pan-European
Mid-Cap Virtual 5 May 2021 Q2 2020/21
Conference (Call: 8.45 am)
1Due to the spread of COVID-19 in Germany and the contact bans mandated by authorities, the Management Board and the Supervisory Board of METRO AG
have decided to hold the Annual General Meeting on February 19, 2021 as a digital meeting only.
23 02/11/2021APPENDIX 24 02/11/2021
RAFAEL GASSET
Long-standing operational experience
• More than 25 years of retail/wholesale experience, incl. CEO in Eastern Europe
• Successful Operating Partner in turnaround cases such as Poland, Romania and
Russia
• Strong commercial orientation and turnaround track record with constant
customer centricity focus
Tenacious and decisive thinker
• Successful transformation of METRO Russia, repositioning the company in a true
wholesaler with a focus on HoReCa and Trader customers and development of
the Franchise business, in a fast-changing economic backdrop
• Strong focus on execution, people and team development
Key focus areas
• Commercial and procurement backbone
• Omnichannel extension – Franchise, FSD and e-grocery
Rafael Gasset
COO
(ad interim) Co-CEO
25 02/11/2021OUTLOOK FY 2020/21
Guidance1 Additional comments
• 1 month of full lockdown in country portfolio: sales loss
of ~ €400 m or ~ 1.5% pp. to PY
FY 2019/20 FY 2020/21
• High comparison basis for H1 FY20/21 with more
favorable business environment from spring 2021
Sales slightly below
growth in local -4.0% previous year (in • Highest impact in HoReCa regions i.e. Western Europe
currency absolute sales)
• Russia and Asia are expected to perform better than the
group
slightly below
LfL growth -3.9% previous year (in P&L
absolute sales)
• Real estate gains: mid-high double digit €m (€3 m in
FY19/20)
decline by a mid-
• Transformation costs: low-double digit €m (€-47m in
double-digit FY19/20)
Adj.EBITDA2 €1,158 m
million euro • D&A: c. €-850 m (€-856 m in FY19/20)
amount
• Net financial result3: c. €-225 m (€-289 m in FY19/20)
• Tax expense: roughly on FY19/20 (€-108 m in FY19/20)
1 At constant FX and before transformation costs, portfolio measures. Furthermore, the outlook is based on the assumption that negative impacts of the COVID-19 pandemic will partially last until the end of Q2 2020/21 in countries relevant for METRO
and a fast and substantial recovery of the HoReCa sector takes place primarily in the 2nd half of the business year
2 Adj. EBITDA - EBITDA pre transformation costs and real estate gains
3 Net financial result estimate based on fx-rates per end of November 2020 and therefore factoring in stable fx-rate compared to 2019/20 year-end closing
26 02/11/2021SALES TO EBITDA
(1/3)
METRO Germany METRO Western Europe
€m / % Q1 2019/20 Q1 2020/21 €m / % Q1 2019/20 Q1 2020/21
Sales 1,347 1,287 Sales 2,932 2,237
Like-for-like growth -0.3% -4.5% Like-for-like growth 0.5% -23.7%
Growth in local currency -0.4% -4.5% Growth in local currency 0.4% -23.7%
Reported growth -0.4% -4.4% Reported growth 0.4% -23.7%
Adj. EBITDA1 76 67 Adj. EBITDA1 205 94
EBITDA margin 5.7% 5.2% EBITDA margin 7.0% 4.2%
Real estate gains 0 0 Real estate gains 1 0
2
Reported EBITDA 76 67
Reported EBITDA2 206 94
1Adj. EBITDA - EBITDA pre transformation costs and real estate gains 2 Reported EBITDA – Including transformation costs and real estate gains
27 02/11/2021SALES TO EBITDA
(2/3)
METRO Russia METRO Eastern Europe
€m / % Q1 2019/20 Q1 2020/21 €m / % Q1 2019/20 Q1 2020/21
Sales 821 677 Sales 1,975 1,728
Like-for-like growth -5.3% 6.6% Like-for-like growth 5.0% -3.5%
Growth in local currency -4.9% 6.3% Growth in local currency 5.1% -3.5%
Reported growth 2.5% -17.5% Reported growth 6.1% -12.5%
Adj. EBITDA1 87 69 Adj. EBITDA1 117 103
thereof FX -20 thereof FX -11
EBITDA margin 10.6% 10.2% EBITDA margin 5.9% 6.0%
Real estate gains 0 0 Real estate gains 0 0
Reported EBITDA2 87 69 Reported EBITDA2 117 103
1Adj. EBITDA - EBITDA pre transformation costs and real estate gains 2 Reported EBITDA – Including transformation costs and real estate gains
28 02/11/2021SALES TO EBITDA
(3/3)
METRO Asia Others
€m / % Q1 2019/20 Q1 2020/21 €m Q1 2019/20 Q1 2020/21
Sales 466 404 Sales 7 4
Like-for-like growth 3.2% -6.4%
Growth in local currency 3.4% -5.2%
Reported growth 5.2% -13.4% Adj. EBITDA1 27 33
Adj. EBITDA1 12 10 thereof FX -4
thereof FX -1 Transformation costs -2
EBITDA margin 2.6% 2.4% Real estate gains 0 25
Real estate gains 0 0
Reported EBITDA2 27 56
2
Reported EBITDA 12 10
Finalization of the arbitration proceedings against Hudson’s
Bay Company (HBC) as well as the change in transaction-
related risk provisions resulted in additional ~€10 million
1Adj. EBITDA - EBITDA pre transformation costs and real estate gains 2 Reported EBITDA – Including transformation costs and real estate gains
29 02/11/2021CASH FLOW STATEMENT € million Q1 19/20 Q1 20/21 EBIT 327 200 Depreciation/amortisation/impairment losses/reversal of impairment losses of assets excl. financial investments 200 199 Change in provisions for post-employment benefits plans and other provisions -15 -9 Change in net working capital 47 -149 Income taxes paid -59 9 Reclassification of gains (-) / losses (+) from the disposal of fixed assets -2 0 Lease payments received 9 15 Other -52 -123 Cash flow from operating activities of continuing operations 456 142 Cash flow from operating activities of discontinued operations 197 0 Cash flow from operating activities 653 142 Acquisition of subsidiaries 0 0 Investments in property. plant and equipment and in investment property (excl.usufructuary rights from leases) -64 -49 Other investments -35 -32 Investments in monetary assets 0 -1 Disposals of subsidiaries 0 39 Divestments 19 4 Disposal of financial investments 0 7 Cash flow from investing activities of continuing operations -81 -32 Cash flow from investing activities of discontinued operations -3 0 Cash flow from investing activities -83 -32 Dividends paid -7 0 Redemption of liabilities from put options of non-controlling interests 0 0 Proceeds from new borrowings 1,128 482 Redemption of borrowings -1,323 0 Lease Payments -138 -132 Interest paid -17 -16 Interest received 4 5 Other financial activities -8 2 Cash flow from financing activities of continuing operations -363 341 Cash flow from financing activities of discontinued operations -108 0 Cash flow from financing activities -471 341 Total cash flows 98 451 30 02/11/2021
LA DOI PASI - ROMANIA 31 02/11/2021
FASOL 2.0 - RUSSIA 32 02/11/2021
30.12.2020
METRO ACQUIRES DAVIGEL AND STRENGTHENS ITS PRESENCE IN SPAIN
Spain
Davigel Spain is a well-established Food Service Distribution (FSD) Active market presence since 1980
company in Spain with a strong presence in the Canary and Balearic
Islands € 1,033m 13% oS
The company holds exclusive rights in Spain to certain products from sales 2019/20 Delivery share
Sysco France’s product assortment which predominantly consists of
elaborate or ready-to-eat frozen products stores: 37
# delivery locations: 32
Operating in Spain since 1988
€ 35m >4,000 >650
With the acquisition of Davigel Spain and
Sales FY20191 Cu. Nationwide2 SKUs in raw and
resulting access to complementary HoReCa
elaborate assortment
customer groups while strengthening product
The transaction3 includes the operational business, warehouses, proposition, METRO reinforces its position in
truck fleet and a long-term supply agreement which provides a FSD while creating an additional offer for local
continued access to Davigel’s unique product catalogue customers
Elaborated Categories
METRO AG is actively participating in the consolidation in a highly
fragmented wholesale market and aims to continue driving
sustainable and profitable growth in the Spanish market
1FY 2019 - July 2018 to June 2019 2 70% are chained Hotels and 30% are independent HoReCa 3 Transaction is not subject to regulatory approval. The company
will be reported in cluster “Western Europe” as of Q2 2020/21CONTACT
Investor Relations
METRO AG
Metro-Straße 1
40235 Düsseldorf
Germany
T +49 211 6886-1280
F +49 211 6886-73-3759
E investorrelations@metro.de
www.metroag.de
34 02/11/202135 02/11/2021
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