MADE TO TRADE 9M / Q3 2011 Conference Call/assets/mag/documents/... · 2016-01-14 · EBIT at Real Estate driven by the sale-and-leaseback transaction of Metro Cash & Carry stores

MADE TO TRADE.

9M / Q3 2011 Conference Call

3 November 2011 | © METRO AG 2011

3 November 2011 | © METRO AG 2011MADE TO TRADE. 9M / Q3 2011 Conference Call 1

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, 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 topurchase, 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.

For more information regarding the application of accounting methods please refer to the notes in the Annual Report 2010.

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.

Disclaimer and Notes


Earnings Increase in Challenging Economic Environment

� Q3 sales impacted by FX effects; sales in local

currency declined by 0.7%

� Solid sales development in Germany (adjusted

for store disposals)

� International sales down by 0.9% in local

currency:

� Western Europe: -4.8%

� Eastern Europe: +2.0%

� Asia/Africa: +12.1%

� EBIT grew significantly to €614 million

(Q3 2010: €445 million)

FY 2011 EBIT guidance specified:*

� c.10% growth still achievable, if Christmas business is considerably better

� On the back of normal Christmas business,

growth at least in line with market expectations of 5%

Sales Development (€)

EBIT Development (ΔΔ in € million)

Q2

0.2%

Q1

0.0%

Q4

1.6%

Q3

4.5%

Q2

2.4%

Q1

2.3%

Q3

-2.0%

2010 2011

-28

169

9

230

95

18

49

Q2Q1Q4Q3Q2Q1 Q3

* For full particulars please refer to 9M/Q3 Quarterly Financial Report, p. 10

2010 2011


Metro Cash & Carry: Q3

� Sales in local currency increased by 0.9%,

supported by positive price effects

� Delivery sales grew by more than 35% to

€448 million

� Share of own brands grew significantly to

16.3% (Q3 2010: 13.7%)

� EBIT increased by €24 million to €276 million:

Positive earnings trend of H1 2011 continued

Germany:

� Positive like-for-like sales: 1.7% adjusted for tobacco & telephone cards

� Focus categories meat, fresh fish and wine showed a satisfactory development


Q2

1.4%

Q1

1.1%

Q4

2.1%

Q3

4.0%

Q2

0.6%

Q1

-0.6%

Q3

-1.2%

Q2

1.8%

Q1

-0.7%

Q4

-1.5%

Q3

0.1%

Q2

-2.9%

Q1

-2.8%

Q3

-0.5%

Like-for-Like Sales Development

Germany (lfl ex tobacco & telephone cards)

Q2

4.3%

Q1

0.2%

Q4

0.6%

Q3

2.8%

Q2

-1.1%

Q1

1.6%

Q3

1.7%

2010 2011

2010 2011

2010 2011


Metro Cash & Carry: Q3 International

Western Europe:

� Sales development in line with H1 despite tough market conditions and high comps

� Positive like-for-like development in France and Spain

Eastern Europe:

� Sales development constrained by the poor performance in Poland and Romania

� Russia with double-digit like-for-like sales growth

� Solid like-for-like sales growth in Turkey, Ukraine and Kazakhstan

Asia/Africa:

� Double-digit like-for-like sales growth rates in all countries with exception of Japan

Western Europe (Like-for-Like)

Q2

0.3%

Q1

-2.1%

Q4

-2.2%

Q3

-0.7%

Q2

-1.6%

Q1

-1.3%

Q3

-0.7%

Q2

1.5%

Q1

-2.2%

Q4

-2.6%

Q3

-0.1%

Q2

-5.5%

Q1

-6.7%

Q3

-2.9%

Eastern Europe (Like-for-Like)

Asia/Africa (Like-for-Like)

Q2

12.7%

Q1

13.9%

Q4

10.9%

Q3

7.9%

Q2

6.8%

Q1

5.4%

Q3

13.2%

2010 2011

2010 2011

2010 2011


Real: Q3

� EBIT grew from €1 million to €24 million

thanks to Shape 2012

Germany:

� 231 concept modules were rolled out

� Like-for-like sales grew by 0.7% also thanks to innovative marketing campaigns

� Food own brand share: 17%

(+70 bps year-on-year)

Eastern Europe:

� Sales in local currency on prior year’s level

� Sales in Poland declined further

� Russia with double-digit like-for-like sales growth



Q2

0.2%

Q1

-3.5%

Q4

1.1%

Q3

1.7%

Q2

0.1%

Q1

4.4%

Q3

-1.8%

Q2

1.6%

Q1

-2.8%

Q4

0.8%

Q3

0.3%

Q2

-2.6%

Q1

1.7%

Q3

0.0%

2010 2011

2010 2011


Germany (Like-for-Like)

Media – Saturn: Q3

� Difficult market environment impacted sales

development, especially in Western Europe

� Strong market positions further strengthened

� EBIT increased from €124 million to

€141 million thanks to IMPROVE and

the relief from French operating losses

Germany:

� Sales improvement despite less promotional

campaigns and thanks also to Redcoon

Western Europe:

� Sales decline due to difficult market conditions

and less promotions

Eastern Europe:

� Strong sales growth in Russia, while sales in Poland declined further

Q2

-3.8%

Q1

0.4%

Q4

-6.4%

Q3

1.6%

Q2

2.9%

Q1

-1.6%

Q3

0.2%

Q2

-7.5%

Q1

-8.3%

Q4

-4.9%

Q3

0.5%

Q2

4.8%

Q1

4.9%

Q3

-10.4%

Western Europe (Like-for-Like)

Eastern Europe (Like-for-Like)

Q2

-1.9%

Q1

-5.7%

Q4

-2.6%

Q3

0.9%

Q2

-12.0%

Q1

-15.2%

Q3

-5.7%

2010 2011

2010 2011

2010 2011


Saturn.de Launch

� www.saturn.de

� Launched 10 October 2011

� Initial customer response exceedingly positive

Initial experience in first fortnight:

� 2,800 articles on sale in the webshop

(will be extended to ~8,000 articles in the next

step)

� 1.97m website visits

� c.€200 average ticket

� 46.4% in-store pick-up

� 0.47% website-to-buy conversion rate


Galeria Kaufhof: Q3

� Sales decline against the backdrop of high

prior year basis

� EBIT declined to €-9 million

Germany:

� Sales development broadly in line with weak

textile market development and impaired by

unseasonable weather conditions

� Store remodellings ongoing: closing media

departments, extending fashion, accessories and beauty, and localising assortments further

Western Europe:

� Business in Belgium delivered satisfactory sales growth rates despite high comps



3.4%

Q2Q4

-4.7%

Q1

1.3%0.9%

Q3

3.5%

Q2

-2.6%

Q1 Q3

-6.3%

-3.9%

Q4

0.9%

Q1 Q3

2.9%4.2%

Q2

-2.7%

Q2Q1

2.1%

Q3

-6.7%

2010 2011

2010 2011


EBIT by Division

� Positive earnings trend at Metro Cash & Carry and Real continued

� Q3 EBIT at Media-Saturn increased by €17 million to €141 million thanks to improved efficiencies

� EBIT at Real Estate driven by the sale-and-leaseback transaction of Metro Cash & Carry stores in Italy

€ million Q3 2010 Q3 2011 Change 9M 2010 9M 2011 Change

Metro Cash & Carry 252 276 9.7% 522 569 9.0%

Real 1 24 - -25 13 -

Media-Saturn 124 141 12.9% 246 163 -34.0%

Galeria Kaufhof 7 -9 - -27 -40 -46.9%

Real Estate 131 245 87.6% 401 520 29.6%

Other -65 -62 4.8% -194 -151 22.4%

Consolidation -5 -1 - -9 -8 11.1%

METRO GROUP 445 614 37.9% 915 1,066 16.5%


Sales and EBIT by Region

-32 (+5)

-20 (+4)

5%

2,237

Δ€: +11.4%; ΔLC:+15.8%

Δ€:+5.9%;ΔLC:+12.1%

91 (+7)

Asia / Africa

100%26%31%38%Share of sales

2,138 (+7)504 (+26)604 (-23)939 (-3)No. of stores (Δ YTD)

47,232

Δ€: -0.6%; ΔLC:-0.2%

Δ€: -2.0%; ΔLC:-0.7%

12,130

Δ€: +1.0%; ΔLC:+2.9%

Δ€: -2.3%; ΔLC:+2.0%

14,826

Δ€: -2.6%; ΔLC:-3.2%

Δ€: -4.5%; ΔLC:-4.8%

18,040

Δ: -1.3%

Δ: -0.5%

9M Sales (€ million)

Δ 9M

Δ Q3

1,066 (+151)

614 (+169)

511 (+25)

220 (+6)

581 (+128)

388 (+148)

1 (-11)

27 (+7)

9M EBIT* (€m) (Δ YoY)

Q3 EBIT* (€m) (ΔΔ YoY)

METRO GROUPEastern EuropeWestern EuropeGermany

1 12 14 6Countries

As at 30 September 2011* pre-consolidation


Shape 2012

Achievement of 2012 METRO GROUP Shape Targets

13%

30%

40%

42%

44%

39%

30%28%

20%

10%

17%

14%

13%4%

5%

7% 4% 3%

21%

29%

21%

16%

15% 12%

8%

5%3%

9 %

4 %

30/06/11

108%

51%

31%

31/03/11

111%

51%

23%

31/12/10

117%

34%

30/09/11

3%

9%

31/03/09

0%

25%

37%

30%

30/06/10

112%

23%

26%

30/09/10

111%

31/03/10

116%

28%

17%

31/12/09

108%

18%

15%

30/09/09

98%

7%

15%

30/06/09

56%

30%

52%

95%

4 Implemented

3 Approved

2 Evaluated

1 Idea 5 Effective

� Total implementation levels at 95%

� Fill levels refer to the end of the

Shape project in 2012; thus,

fluctuations are not unusual

� Efforts to generate additional

measures intensified

� Hence, expected one-offs

increased by c.€100 million to c.€250 million in 2011

� One-offs are used for further

restructuring and optimisation of

store networks


Financials

13 basis points

Gross margin:

Increase due to a higher share of own brand sales, better category management with fewer stock write-downs

€-28 million

Other financial result:

Deterioration due to unfavourable currency movements predominantly in the regions Eastern Europe and Asia

€-6 million

Interest result:

Slightly higher net interest expense due to a higher amount of net debt

€-14 million

Selling expenses:

Despite a higher amount of one-offs, selling expenses declined due to already implemented Shape measures

ChangeQ3 2010 vs.

Q3 2011


Cash Flow and Net Debt

� Further progress in improving working capital; now shortfall in H1 fully

compensated

� Cash flow from investing activities includes the proceeds from the sale and lease

back transaction in Italy as well as the outflow for the acquisition of Redcoon

� Net debt increase due to a higher amount of finance leases in Germany was partly

compensated by improved working capital development

Net Debt (€ billion)

Q3

7.8

Q2

8.4

Q1

7.2

Q4

3.5

Q3

7.6

Q2

8.0

Q1

6.8

Cash Flow from Change in NWC (€ million)

2010 2011+90

9M

-3,295

H1

-3,790

Q1

-3,463

9M

-3,385

H1

-3,554

Q1

-2,878

2010 2011


Q&A

Olaf KochCFO

Dr Eckhard CordesCEO


METRO GROUP

Investor Relations

Schlueterstrasse 1

40235 Duesseldorf

Germany

Tel.: +49 (0)211 6886-1051

Fax: +49 (0)211 6886-3759

Email: [email protected]

Internet: www.metrogroup.de

Contact

Documents

MADE TO TRADE 9M / Q3 2011 Conference Call/assets/mag/documents/... · 2016-01-14 · EBIT at Real Estate driven by the sale-and-leaseback transaction of Metro Cash & Carry stores