FY 2018/19
RESULTS PRESENTATION
12 December 2019
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'sability 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 AGdoes 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. The hypermarket business for sale is reported as a discontinued operation as of 30 September 2018 due to the ongoing sales process. Following the signing of the contract for the disposal of a majority stake in METRO China to Wumei Technology Group, METRO China has been reported as discontinued operation as of 30 September 2019. METRO will retain only 20% stake in METRO China. The discontinued segment primarily includes Real, majority of METRO China and some other individual companies or assets. All following explanations of the business development will focus on the continued operations unless stated otherwise
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 millionare rounded and reported as 0. Rounding differences may occur.
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RECAP: CONTINUOUS JOURNEY TO SIMPLIFY AND REPOSITION METRO AS A WHOLESALER
METRO is transforming into afully focused Wholesale company
We steadily optimize our portfolioto further strengthen our B2B profile
Intensified focus has lead torising LFL momentum, strongly driven bysales growth with Horeca and Trader
Building a wholesaler 360°provides the potential for even stronger differentiationand further growth
Today's results show progressand deliver proofacross all of these dimensions
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OUR ORIGIN IS WHOLESALEIS OUR FUTURE
INTENSIFICATION
Year of Extension
2017/18 | 2018/19 |
1.Business model extension further strengthened customer focus | |
ACTIVATION | 2.Sustainability priorities for us and our customers sharpened |
Becoming a pure Wholesaler | 3.All financial targets achieved or outperformed |
4.Significant progress on portfolio simplification and | |
funds for further acceleration unlocked |
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Guidance view (continuing operations incl. China)
SUCCESSFUL EXTENSION OF BUSINESS MODEL…
Horeca
+4.5%
Trader1
+5.1%
Customer focus drives repeated
like-for-like growth with target
groups
Store
+0.7%
LfL
Delivery
~+10%
Total
Franchise
+15%
Franchise partners
Additional channels solidify
customer loyalty andrevitalize
the store
Products
Marketplace
Addressingall customer needs through a full suite of wholesale products, services and solutions
constitutes our USP
1:Trader countries: Bulgaria, Czech Republic, India, Pakistan, Poland, Romania, Serbia, Slovakia (excl. Russia)
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… BASED ON DEEP AND SUSTAINABLE RELATIONSHIPS
Market Size 1 | ||
301 | 294 | |
60 | ||
Western | Eastern | Asia |
Europe | Europe | |
452 | ||
207 | 174 | |
Western | Eastern | Asia |
Europe | Europe |
>125kdaily Horeca visits in our stores
>65kdaily Trader visits
>50kdaily customer contacts with our sales force employees
Operating in fragmented, | Benefiting from recurring revenues | Makingsustainable operations |
growing markets, offering further | throughcontract-like customer | apriority for us and our |
opportunities for growth | relationships | operations |
Source: own data based on internal management system
1. EURb, sell-out value 2018, MCC countries. Note: WE incl. DE, EE incl. RU, Asia without CN; MCC countries excl. countries with pure play FSD operations (e.g. CFF) HoReCa market according to Euromonitors definition excluding social foodservice. Trader market including traditional grocery retailers, forecourt and CVS. Source: Euromonitor
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SUSTAINABILITY PRIORITIES DEFINED AND RECOGNIZED
Clear priorities for us & our customers
impact on customer's businesses
Prio 1:Partnering for Food Waste solutions
- Partnership with Too Good To Go. Helping to tackle food waste for restaurants and canteens
Prio 2:Conscious proteins
- Insect pasta to support conscious protein consumption and decrease of conventional meat intake, supported by NX Food1
- Roll-outof Beyond Meat Burger in 15 countries
Prio 3:Organic and Responsible Products
- Offering a sustainable assortment to our customers
- Sustainable raw material sourcing policies (fish & seafood, paper & wood in place, while palm oil, soy, social standards in implementation); meat and fruit & vegetable under development
Find our latest report below: reports.metroag.de
1NX Food - A hub of METRO, operating in the field of food innovation and food tech https://nx-food.com/
…repeatedly recognized by institutions
Industry | Prime Status C+ | Index member |
Leader Europe | (Rank D- to A+) |
Climate | Water | Forest | ||
Rating A- | Rating B- | To come in |
(Rank F to A) | (Rank F to A) | 2020 |
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Guidance view (continuing operations incl. China)
GUIDANCE ACHIEVED IN UPPER END OF RANGE
Sales growth1 | P |
1-3%
2.5%
1.5%
FY 17/18 | FY 18/19 | FY 18/19 |
Guidance |
- Upper end of guidance range
- Growth driven by Eastern Europe (excl. Russia) and Asia
- Western Europewith solid growth
1At constant FX and before portfolio measures
LfL sales growth1P
1-3%
2.4%
1.3%
FY 17/18 | FY 18/19 | FY 18/19 |
Guidance |
- Upper end of guidance range,highest Wholesale LfL growth in a decade
- Western Europe, Eastern Europe, Asiawith growth above PY
- Russia with trend improvement
EBITDA P
€1,242 m
-2.6%
excl. VTO costs
- 4.2%
2-6%
decline1
FY 17/18 | FY 18/19 | FY 18/19 |
Guidance |
- Upper end of guidance rangeif adjusted for ~€20 m EUR VTO costs
- Germany, Western Europe, Asiawith EBITDA growth
- "Others" below PY due to cost of digitalization / IT
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Guidance view Pre IFRS 5
ACCELERATING AND RELIABLE MOMENTUM CLEARLY VISIBLE IN LONG-TERM SALES TRENDS
Consistently positive Wholesale LfL growth
LfL sales growth (METRO Wholesale) | |
Mid-term ambition | 3.0%2 |
3% | 2,4% |
Horeca outperforming…
Horeca LfL sales growth (METRO Wholesale)
4.2% Excl. CN
3,5%3,9% 4,1%3,7% 4,5%
FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19
…rapidly increasing Delivery3sales…
Delivery as % of sales (METRO Wholesale)
18%
Excl. CN
11% 13%16%18% 20%
FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19
0,9% | 0,6% | 0,9% | 1,3% |
FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19
…consistently improved Trader development…
LfL sales growth (METRO Wholesale) Trader Countries1
4,5% 4,6% 5,1%
-0,1%
-1,7%
FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19
…growing Food sales
LfL food sales growth (METRO Wholesale)
2.8%
Excl. CN
3,1%
2,1% | 1,7% | 2,1% | 1,9%4 | |||
FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19
- Trader LfL excl. Russia: Bulgaria, Czech Republic, India, Pakistan, Poland, Romania, Serbia, Slovakia
- Excluding Russia3Delivery definition has been changed in the Annual report to exclude transportation after checkout and pick up, for this slide it is still included 4Financial view before IFRS 5
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ACHIEVEMENT OR OUTPERFORMANCE OF ALL FINANCIAL TARGETS - €0.70 DPS PROPOSED
Sales growth and EBITDA - upper end of guidance | P |
Real estate gains- ~€100 m better than originally expected | P |
D&A, net financial result, tax rate - better than expected | P |
EPS~€0.20 better than expected (mostly real estate) | P |
Cash flow- NWC, capex savings, real estate gains drive growth | P |
€0.70 dividend
proposed
(€0.70 17/18)
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MILESTONE TRANSACTIONS REAL AND CHINA
Transaction summary
- sale of hypermarket business
- Entered into MoU and exclusive negotiations for the sale of Hypermarket business with SCP Group and x+bricks
- 100% stake to be sold
- Transaction expected to be signed end of January 2020
- sale of majority stake in METRO China
- Sale of majority stake in METRO China to Wumei signed
- Values METRO China at €1.9 bn EV (>12x EV/EBITDA)
- METRO to retain 20% stake and participate in valuation upside
- Closing expected Q2 calendar year 2020
1as per Sep 19 accounts.
Key benefits
Portfolio simplification - one sales line | P |
Wholesale focus- 70% Horeca & Trader sales P
Grow Horeca & Trader- accelerate momentum P | |
Unlock >€1.5 bn1- grow business, reduce | P |
leverage | |
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FY 2018/19 IN A NUTSHELL - SOLID YEAR
Business model | • | Focus drives repeated growth with target groups |
extension | • | Omnichannel revitalizes the store and drives loyalty |
strengthened | • | Wholesale 360: Addressing all customer needs |
customer focus | constitutes our USP | |
Sustainability | •Clear priorities: food waste, | |
organic & responsible products, conscious proteins | ||
priorities | ||
• | Recognized through top ratings by key institutions, | |
sharpened | ||
e.g. DJSI, CDP, ISS Oekom | ||
2018/19
Intensification
Extension of our wholesale model
1as per Sep 19 accounts.
All financial | • | Sales and EBITDA in upper end of guidance range |
targets | ||
achieved or | • | €1.44 EPS; €0.70 DPS proposed to shareholders |
outperformed | ||
Significant | • | Majority stake in METRO China sold to Wumei |
progress on | • | Real - expected signing end of January 2020 |
portfolio | ||
• | >€1.5 bn proceeds1expected to be unlocked to grow | |
simplification | ||
business | ||
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02FINANCIAL PERFORMANCE
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Guidance view (continuing operations incl. China)
SALES TO EBITDA - 9M TRENDS CARRY OVER INTO
FULL YEAR
€m / % | Q4 | Q4 | FY | FY |
2017/18 | 2018/19 | 2017/18 | 2018/19 | |
Like-for-like growth | 1.7% | 2.5% | 1.3% | 2.4% |
thereof Food | 2.2% | 3.4% | 2.0% | 3.1% |
Reported growth | -1.7% | 3.9% | -1.4% | 1.5% |
Growth in local currency | 1.5% | 2.7% | 1.5% | 2.5% |
Delivery Sales Share1 | 18% | 19% | 17% | 18% |
EBITDA excl. RE gains | 322 | 304 | 1,242 | 1,173 |
thereof FX | 6 | -17 | ||
EBITDA margin excl. RE gains | 4.4% | 4.0% | 4.2% | 3.9% |
Real estate gains | 121 | 323 | 128 | 388 |
Total EBITDA | 443 | 627 | 1,370 | 1,561 |
Like-for-like growth
- Acceleration oflike-for-like growth driven by most regions
Reported growth
- Negative FX effects predominantly from Turkey and Russia
- Sales grew by 2.5% in local currency
EBITDA excl. real estate
- EBITDA well within guidance range
- Operational improvement in France, Pro à Pro and Germany
- Negatively affected by ~€20 m VTO costs in Q4
Real estate gains
- FY 18/19 expectation ofc.€250-300 m in real estate gains has been overachieved due to earlier execution of two projects in China
1.Including METRO China. New definition of delivery, which excludes transportation after check out and pick up .
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Guidance view (continuing operations incl. China)
MAJORITY OF REGIONS GROW SALES AND EBITDA
Germany
€m / % | FY | FY | |||||||
2017/18 | 2018/19 | 3,1% | |||||||
Sales | 4,761 | 4,735 | |||||||
2,0% | 2,4% | ||||||||
Like-for-like growth | 0.9% | 0.3% | |||||||
1,3% | |||||||||
Reported growth | 0.3% | -0.5% | |||||||
EBITDA excl. RE gains | 91 | 95 | |||||||
FY 2017/18 | FY 2018/19 | ||||||||
EBITDA margin | 1.9% | 2.0% | |||||||
Constant FX to PY | 4 | Like-for-like growth | Thereof: Food | ||||||
Russia | Eastern Europe | |||||
€m / % | FY | FY | €m / % | FY | FY | |
2017/18 | 2018/19 | 2017/18 | 2018/19 | |||
Sales | 2,815 | 2,662 | Sales | 6,952 | 7,191 | |
Like-for-like growth | -7.0% | -4.3% | Like-for-like growth | 6.1% | 6.3% | |
Reported growth | -16.3% | -5.4% | Reported growth | 1.0% | 3.4% | |
EBITDA excl. RE gains1 | 256 | 220 | EBITDA excl. RE gains | 363 | 344 | |
EBITDA margin | 9.1% | 8.3% | EBITDA margin | 5.2% | 4.8% | |
Constant FX to PY | -301 | Constant FX to PY | -11 |
1Adjusted for c. €10m one-time gain from Ceconomy in 2017/18
Western Europe
€m / % | FY | FY |
2017/18 | 2018/19 | |
Sales | 10,609 | 10,752 |
Like-for-like growth | -0.4% | 1.3% |
Reported growth | 1.7% | 1.3% |
EBITDA excl. RE gains | 491 | 499 |
EBITDA margin | 4.6% | 4.6% |
Constant FX to PY | 8 | |
Asia
€m / % | FY | FY |
2017/18 | 2018/19 | |
Sales | 4,298 | 4,543 |
Like-for-like growth | 4.0% | 5.1% |
Reported growth | -1.4% | 5.7% |
EBITDA excl. RE gains | 162 | 176 |
EBITDA margin | 3.8% | 3.9% |
Constant FX to PY | 14 | |
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Guidance view (continuing operations incl. China)
REAL ESTATE - EXCEPTIONALLY STRONG YEAR; PARTLY DUE TO EARLIER EXECUTION OF PROJECTS IN CHINA
2018/19 (€388 m gains) | 2019/20 and beyond |
India | Germany, Spain, | |
Eastern Europe | ||
China | 2019/20 | Thereafter | ||
- Spillover from 2017/18
- Project development
- EBITDA gain ~€38 m
- Project development in Germany
- Sale-and-leasebackin Spain and Eastern Europe
- EBITDA gain ~€230 m
•Early execution of two | • | Preponed transactions | • | Sustainable level of | ||
project development | and value | real estate gains (post | ||||
transactions out of | crystallization of China | IFRS 16 application) of | ||||
M&A scope with | portfolio in transaction | ~€100 m p.a. | ||||
Wumei1 | with Wumei | • | Various projects in | |||
•EBITDA gain ~€120 m | • | Preponement | Europe and Asia in | |||
significantly decreased | preparation | |||||
2019/20 pipeline to | ||||||
~€10 m | ||||||
1One real estate property is excluded from the SPA with Wumei, the price will be paid directly to METRO Group. The second location is within the transaction scope with Wumei, whereby the sales price of the property will be paid to the company, but cash flow of the property sale will be included in the sales price from Wumei
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Guidance view (continuing operations incl. China)
EPS INCREASE DRIVEN BY EBITDA GROWTH AND
BETTER REFINANCING
€m / % | Q4 | Q4 | FY | FY |
2017/18 | 2018/19 | 2017/18 | 2018/19 | |
EBITDA | 443 | 627 | 1,370 | 1,561 |
D&A | -141 | -155 | -547 | -577 |
EBIT | 302 | 472 | 823 | 985 |
Interest and investment result | -38 | -27 | -128 | -112 |
Other financial result | 0 | 4 | -2 | 2 |
Net financial result | -38 | -23 | -130 | -111 |
EBT | 264 | 449 | 693 | 874 |
Tax rate | -35% | -39% | ||
Net income | 199 | 266 | 4431 | 523 |
EPS in € | 0.55 | 0.73 | 1.22 | 1.44 |
1Lease contracts previously based on Euro had to be converted into Turkish Lira, resulting in retrospective adjustment of deferred taxes assets and liabilities
D&A
- Increase in D&A driven by higher IT- investments with shorter useful life
Net financial result
- Improvement in interest and investment result due to better refinancing
Tax
- In line with expected37-39%
- Last year exceptionally good tax rate due toone-time effects coming from tax law changes and revised risk evaluation
- Current year positively impacted by high real estate gains in low tax rate countries, compensated bywrite-off of deferred tax assets related to planned efficiency measures
EPS
- Significant EPS increase due to earlier execution of two real estate transactions in China and better net financial result
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€0.70 DPS PROPOSED; REPORTED EPS IMPACTED BY IMPAIRMENT IN DISCONTINUED OPERATIONS
€ / % | Q4 | Q4 | FY | FY |
2017/18 | 2018/19 | 2017/18 | 2018/19 | |
EPS from continuing operations | 0.55 | 0.73 | 1.22 | 1.44 |
incl. METRO China | ||||
Proposed DPS | 0.70 | 0.70 | ||
EPS from disc. Operations incl. | -0.28 | -0.59 | -0.30 | -1.79 |
real | ||||
Reported EPS | 0.27 | 0.14 | 0.92 | -0.35 |
Reported EPS pre impairment | 1.05 | 0.76 | ||
EPS from continuing operations
- Significant EPS increase due to earlier execution of two transactions in China and better net financial result
Proposed DPS
- Proposed dividend of €0.70 based on continuing operations EPS, resulting in 49% payout ratio
EPS from discontinued operations
- Decrease is predominantly driven by impairment on hypermarket business
Reported EPS
- Decrease in reported EPS only due to development of EPS from discontinued operations
- Before impairment, reported EPS is at €0.76
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Guidance view (continuing operations incl. China)
SALES AND EBITDA GROWTH REFLECTED IN SOLID
CASH GENERATION
€m / % | Q4 | Q4 | FY | FY |
2017/18 | 2018/19 | 2017/18 | 2018/19 | |
EBITDA | 443 | 627 | 1,370 | 1,561 |
Change in NWC | 546 | 469 | 179 | 45 |
Capex1 | -208 | -182 | -5522 | -455 |
FCF | 781 | 914 | 997 | 1,152 |
FCF Conversion in % | 73% | 74% | ||
Net Debt | 2,710 | 2,382 | ||
Net Debt Continuing operations | 3,102 | 2,858 | ||
(METRO China in IFRS5) | ||||
Change in NWC
- Last year was supported by seasonal tailwinds and a one time negative impact the year before
- Positive result this year has been driven once again by stock optimization
Capex
- Continuous investment into IT and digitalization together with decreased number of store openings (NSOs CY: 6 and PY: 14)
FCF
- Overall increase by €155 m to 74% conversion, also supported by real estate gains
Net debt
- Year-on-yearimprovement due to operating and investing cash flow development
- Higher real estate gains
- NWC optimization
- Focused investments
1Capex excl. M&A and finance leases 2Capex definition has been adjusted to fully exclude finance leases, previously this only excluded finance lease extensions
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REFLECTING THE PENDING SALE OF METRO CHINA IN FINANCIAL REPORTING
Impacts on financial reporting
IFRS 5 (discontinued operations)
- China reported as disc. operations from 30 Sep 19 onwards
- Stop of regular depreciation from 1 Oct 2019 onwards
- Detailed reconciliation in appendix as well as on homepage
Group view
- Impacts all group financial statements
- Balance sheet 17/18 not adjusted; all other statements both years adjusted
Segment view
- METRO Asia, 'Others' and Consolidation affected
- Remaining segments unchanged
Key financials excl. China
Guidance | Cont. | |||
FY 2018/19 | view | Operations | ||
(incl. China) | (excl. China) | |||
Sales | 29,928 | 27,082 | ||
Sales growth (LC) | 2.4% | 2.2% | ||
Sales growth (like-for-like) | 2.5% | 2.1% | ||
EBITDA | 1,173 | 1,021 | ||
Real estate gains | 388 | 338 | ||
Depreciation | -577 | -531 | ||
Net financial result | -111 | -119 | ||
Tax rate (12M) | 39% | 42% | ||
EPS | 1.44 | 1.12 | ||
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FY 2018/19 IN A NUTSHELL - SOLID FINANCIAL PERFORMANCE
2018/19 good | •Solid 9M trends carryover into FY | |
• | Majority of regions grow sales and EBITDA | |
financial year | ||
• | Sales & EBITDA growth reflected in cash generation | |
Exceptionally | •Partially driven by earlier execution of China projects | |
• | Sale of China preponed crystallization of pipeline | |
strong year for | ||
real estate | • | Nonetheless, €100 m sustainable level of earnings |
from FY2020/21 |
2018/19
Intensification
Extension of our wholesale model
EPS growth | •EPS increase driven by EBITDA and refinancing | |
• | €0.70 DPS proposed; in line with dividend policy | |
and stable DPS | ||
• | Reported EPS impacted by impairment in disc. ops. | |
Solid | • | China reported as discontinued operations |
underlying | • | Underlying operational trends are solid, irrespective |
business | of the reporting view |
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Continuing operations only (METRO China in IFRS 5)
FINANCIAL AND NON FINANCIAL IMPACTS IN 2019/20
China
Real
Real estate gains
Efficiency measures
IFRS 16 (leases)
1as per Sep 19 accounts.
- Closing expected in Q2 2020 with~€3 EPS gain
• | METRO to retain 20% stake; effects not accounted for in outlook | >€1.5 bn1in |
net | ||
proceeds | ||
• | Sale of 100% of Hypermarket business | expected |
- Expected signing end of January 2020; closing expected in FY 2019/20
- 19/20 pipeline€10 mpost value crystallization in China transaction
- Sustainable level of real estate gains (post IFRS 16 application) of~€ 100m from 20/21
- Organizational rightsizing:€60 to 80 millionone-timeexpensesin 2019/20
- Long-termannual savings in the mid-double-digitmillion range
- IFRS 16 replaces current applicable standards IAS 17 and IFRIC 4
- METRO applies'full retrospective method'with adaption of previous year starting in 19/20
- Expected effects continuing business: c. €2.6 bn net debt increase; c. €0.4 bn EBITDA increase
- METRO will provide booklet with restated FY18/19 financials ahead of Q1 FY19/20
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Continuing operations only (METRO China in IFRS 5)
UNDERLYING OPERATIONAL MOMENTUM TO CONTINUE
EBITDA share | Sales1,2 | EBITDA2 | ||||
(rounded, in %) | 2018/19 | 2019/20 | 2018/19 | 2019/20 | ||
+2.1% | +1.5-3.0% | € 1,021m |
Western Europe | Reap | |||||||
60 | ||||||||
Germany | benefits | |||||||
Eastern Europe | Gain | |||||||
35 | ||||||||
market | ||||||||
Asia | ||||||||
share | ||||||||
Russia | ||||||||
Reposition | 20 | |||||||
Others | -15 |
- Figures shown relate tolike-for-like sales growth.
- At constant FX and before portfolio measures and transformation costs.
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03STRATEGIC UPDATE
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HORECA AND TRADER MAKE UP 70% OF SALES AND DRIVE GROWTH
Horeca
+4.2%1LfL growth
Restaurants, cafés, caterers, hotels, canteens
Customers are predominantly
independent with single or locations
Customer sales shares FY 2018/194
Western Europe | Germany |
46%
16% 65%
13%
48% Horeca
22% Trader
30% SCO
Asia3
40%
31%
Trader
+5.1% LfL growth
Traders, kiosks, mom-and-pop-shops, kiranas
independent entrepreneur
running his own retail business. Supplying consumers nearby
Eastern Europe | Russia |
16%
37%
30%
31%
1Like-for-like sales FY 2018/19 excluding China 2Trader countries (Bulgaria, Czech Republic, India, Pakistan, Poland, Romania, Russia, Serbia, Slovakia) excl. Russia 3Excluding China 4Like for like sales FY 2018/19. Number of countries reviewed the customer branches, hence the sales shares have changed in Germany, Eastern Europe and Russia
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WE DRIVE LASTING SUCCESS WITH CLEAR PRIORITIES FOR HORECA CUSTOMERS
+1%p NPS
improvement1
Activate passionate and purpose driven teams
Salesforce
~6,500sales force employees
~10customer contacts
- sales force employee
- day
Own business day
Celebrates business owners by advertising them on an online platform with special ideas & offers
>300kbusinesses >650kspecials
Lead in assortment relevance
Own brand
Cooperation with chefs, customers & suppliers
17%sales share3
+6%2growth ~24%share in FSD3
Local products
Close collaboration with regional suppliers to fulfil local needs and address trend to buy local products
Lead in product quality
Quality assurance
>600people working daily to ensure on the quality of the assortment
Traceability
Transparency along the entire value chain
Turkey, Germany and other countries
Please scan QR code for demonstration
1NPS score with Horeca customers compound growth over quarters FY 2018-19, excluding China 2Like-for-like sales FY 2018/19 for Horeca excl. China 3Like-for-like sales FY 2018/19, excl. China and acquisitions
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WE DRIVE LASTING SUCCESS WITH CLEAR PRIORITIES FOR TRADER CUSTOMERS
+9%p NPS
improvement1
Customer success focus
Equip customers to differentiate from competition
- Core assortment
- Specialized range & local products
- Generating footfall through dedicated solutions
Becoming the wholesale price
and cost leader
Low price, 3 mechanics
- EDLP3on regular articles
- BMPL4to reward price per volume approach
- 25% margin guarantee on Own Brand2
Strip down to sell up
- Processes are optimized: easy in - easy through - easy out
- No frills - low cost
- Massification, pallet presentation & shelf ready boxes
Achieve recurring revenues
through partnership
Trader Franchise
~7,500stores in 18/19 +15%vs 17/18
3-4xmore visits with up to 2.5xhigher basket than non- franchisees
~€ 490msales in 18/19
One of the fastest growingstrategic pillars for METRO
1NPS score with Trader customers compound growth over quarters FY 2018-19 , excluding China 2As a reference from our Own Brand approach in Poland. 3Every Day Low Prices 4.Buy More Pay Less
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WHOLESALE 360 - BROADENING THE BUSINESS TO BECOME THE SERVICE AND SOLUTION PARTNER
Allocation of spend in Hospitality SME
Clear andtruly unique selling proposition of generating significant value for our customers
More insightsenabled by data will lead to unbeatable sector knowledge
Partnering upwith our customers at such a strong level will implant METROinto their business
METRO as signature brandthat stands for true & honest contribution to the successof SMEs
1Other includes e.g. Marketing, Transportation
9%
Other1
35% | |
25% | Goods |
Utilities
&
Leases
Staff
31% | Source: Eurostat |
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WE ADDRESS ALL CUSTOMER NEEDS WITH A SUITE OF PRODUCTS, SERVICES AND SOLUTIONS
Strategic cooperation
allows integrated
solutions - for example,
professional kitchen
appliances on preferential
terms
To help our customers achieve their goals, we are breaking new ground
- and offering financial support, for example
Food and non-food products that make restaurateurs and retailers successful. With 100% quality and local focus
Products
Marketplace
Everything restaurateurs need, on 1 platform. From drinking straws to dining sets. METRO MARKETS makes it possible
Prerequisite for good advice: understanding. We know the challenges of our customers and respond with individualized consulting
For us, more than just a nice 'extra'. Useful tools increase efficiency and create added value. For retailers, restaurateurs
and guests
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WE HAVE ADDED MANY LOCAL OFFERINGS IN 2018/19
Products
Marketplace
MENU KIT
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FY 2018/19 IN A NUTSHELL - SUCCESSFUL EXTENSION OF BUSINESS MODEL
2018/19
Intensification
Extension of our wholesale model
Customer focus pays off
Clear priorities for Horeca customers
(mostly Western Europe and Germany)
Clear priorities for Trader customers
(mostly Eastern Europe, Russia, parts of Asia)
Wholesale 360 business model extension
- Horeca and Trader: 70% of sales and drive growth
- Horeca: +4.2% in 18/191
- Trader: +5.1% in 18/192
- Activate passionate andpurpose-driven teams
- Lead in assortment relevance and product quality
- +1%p improvement of NPS score
- Becoming the wholesale price leader and cost leader
- Achieve recurring revenues through trader franchise
- +9%p improvement of NPS score
- Broaden the business; become the #1 partner
- We address all customer needs and have successfully launched many offerings in 2018/19, e.g. Gourvenience, Pentagast, METRO Markets
1Like-for-like sales FY 2018/19 excluding China 2Trader countries (Bulgaria, Czech Republic, India, Pakistan, Poland, Romania, Russia, Serbia, Slovakia) excl. Russia
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04OUTLOOK & GUIDANCE
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OUTLOOK FOR 2019/20
Guidance1
FY 2018/19 | FY 2019/20 |
Sales
growth in local 2.2%1.5-3%growthcurrency
LfL growth | 2.1% | 1.5-3% growth | ||
On PY level | ||||
EBITDA excl. | Russia to decline | |||
real estate | €1,021m | €20-30m; | ||
gains | compensated by | |||
Western Europe | ||||
and Germany | ||||
Topics on our agenda for next year
Finalize milestone transactions
- Real: closing FY 2019/20
- METRO China: closing expected by Q2 2020, ~€3 EPS gain
- Jointly >€1.5bn proceeds2expected
Adjust HQ structures accordingly
- Lean and efficient holding structure to reflect portfolio rationalization and wholesale purification
Accelerate operational momentum
- Further sharpen Horeca & Trader value proposition
- Wholesale 360roll-out
1At constant FX and before transformation costs, portfolio measures and IFRS16. Continuing operations only (METRO China in IFRS 5). 2as per Sep 19 accounts.
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TRANSACTION PROCEEDS TO ACCELERATE GROWTH OF CORE…
Horeca3
+4.2%
Trader1 | >€1.5 bn | ||||
expected net proceeds from transactions2 | |||||
+5.1% |
Consistent high growth | …to be acceleratedby expected |
momentum in target | net proceedsfrom two milestone |
customer groups… | transactions… |
-
Investment in business
Goal: accelerate sales growth, drive sustainable EBITDA growth - Returns to shareholders
Goal: sound shareholder return in balance with operational needs - Deleverage
Goal: funds from operations (FFO) / Adj. net debt ≥ 21%4
…in line with our
capital allocation framework
1Trader countries: Bulgaria, Czech Republic, India, Pakistan, Poland, Romania, Serbia, Slovakia (excl. Russia) 2Preliminary, based on Sep 19 accounts; subject to closing accounts 3Like for like sales FY 2018/19 , excl. China 4S&P threshold; at minimum required to be in line with expectations to maintain credit rating.Funds from operations (FFO) as per S&P methodology mainly includes: EBITDA + fictitious depreciation share of operating lease expense + interest expense + income taxes + minor further adjustments. Adjusted net debt as per S&P methodology mainly includes: financial debt - cash & cash equivalents (after a haircut on trapped cash) + NPV of operating leases (at 7.0%) + pensions (net of deferred taxes applicable) + minor further adjustments
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…WITH AMBITION TO CLOSE THE GAP TO PREVIOUS EBITDA LEVELS IN NEXT 3 YEARS
Organic growth
Acquisitions
Cost savings
- Reap benefits of successful and establishedHoreca-focused strategy
- Capitalize on market share gains inTrader-focused countries
- Realize return on wholesale 360 and related digital activities
- Operating in growing but highly fragmented markets, benefiting from favorable consumer trends
- Acquisition of Pro à Pro resulted in both organic growth and realization of synergies
- Serves as blueprint for further densification inHoreca-focused markets
- Administrative structures already repeatedly adjusted during 10 years of transformation
- Currently reviewing holding structures with the ambition to generatelong-term annual savings in the mid-double-digit million range
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TO SUM IT UP
Portfolio simplification leading to apure wholesale profile
Horeca and Trader focus lead to LFL growth withrising momentum
All financial targetshave been achieved or outperformed
- METRO China sold to Wumei; sale of hypermarket business well advanced
- Announcement of efficiency measures to right size structures
- HighestLfL-growth in a decade1; Horeca +4.5%2, Trader +5.1%3
- Extension of business model to'360-approach' to address all customer needs
- Sales and EBITDA growth in upper end of guidance range
- €1.44 EPS; €0.70 DPS proposed to shareholders
Next financial year 2019/20will continue in similar fashion
We gear up to further accelerate growth and earnings momentum
- Operational trends continue4: 1.5-3% sales growth, EBITDA stable
- Expected >€1.5 bn net proceeds5one-time gain from China and real and roughly ~€3 EPS from China
- Investing proceeds in line with capital allocation framework to grow momentum
- Compensate EBITDA dilution with cost savings, organic growth and acquisitions
METRO made considerable progress in transforming into a focused Wholesale company
The sale of METRO China and real will provide the fundsto accelerate the growth and earnings momentum
1Wholesale like-for-like growth. 2Guidance view (continuing operations incl. China)
3Trader countries: Bulgaria, Czech Republic, India, Pakistan, Poland, Romania, Serbia, Slovakia (excl. Russia) 4At constant FX and before portfolio measures and transformation costs. 5as per Sep 19 accounts.
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EVENTS AND FINANCIAL CALENDAR
Upcoming | Financial |
events | calendar |
2019/20 |
17 Dec 2019 Roadshow Frankfurt | 15 | Jan 2020 | Trading statement Q1 |
13 | Feb 2020 | Quarterly statement Q1 | |
(CFO) - Commerzbank | |||
14 | Feb 2020 | AGM | |
7 May 2020 | Quarterly report H1 | ||
7 Aug 2020 | Quarterly statement Q3 |
Conferences
2019/20
15 Jan 2020 German Investment
seminar -
New York, Commerzbank
22 Jan 2020 German Corporate
conference - Frankfurt,
UniCredit/Kepler
Cheuvreux
37 12/12/2019 © METRO AG.
Q&A
Olaf Koch, CEO | Christian Baier, CFO |
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05APPENDIX
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APPENDIX OVERVIEW
Quarterly performance
Full year 2018/19
Others
Guidance view and continuing operations for:
- Sales to EBITDA
- EBITDA to EPS
- FCF
- METRO Asia and "others"
- Sales by quarter (group currency, local currency andLike-for-like)
Key financials from reconciliation file
-
Reginal view
Continuing operations - Profit and loss statement
- Balance Sheet
- Cash Flow
Guidance view and continuing operations for:
-
Operational metric - Sales share, FSD and Own Brand shares
Continuing operations - Key statistics - Sales, stores, selling space and employees numbers
- Capex and capex allocation
- Real estate
- External financing
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01QUARTERLY PERFORMANCE
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Guidance view (Pre IFRS 5 China) | Continuing operations only |
SALES AND EBITDA IN Q4
€m / % | Q4 2017/18 | Q4 2018/19 |
Like-for-like growth | 1.7% | 2.5% |
thereof Food | 2.2% | 3.4% |
Reported growth | -1.7% | 3.9% |
Growth in local currency | 1.5% | 2.7% |
Delivery Sales Share | 18% | 19% |
€m / % | Q4 2017/18 | Q4 2018/19 |
Like-for-like growth | 1.3% | 2.1% |
thereof Food | 1.8% | 3.0% |
Reported growth | -2.3% | 3.3% |
Growth in local currency | 1.1% | 2.2% |
Delivery Sales Share | 17% | 18% |
EBITDA excl. RE gains | 322 | 304 |
thereof FX | 6 | |
EBITDA margin excl. RE gains | 4.4% | 4.0% |
Real estate gains | 121 | 323 |
Total EBITDA | 443 | 627 |
EBITDA excl. RE gains | 278 | 261 |
thereof FX | 5 | |
EBITDA margin excl. RE gains | 4.2% | 3.8% |
Real estate gains | 121 | 273 |
Total EBITDA | 399 | 533 |
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Guidance view (Pre IFRS 5 China) | Continuing operations only |
EBITDA TO EPS IN Q4
€m / % | Q4 2017/18 | Q4 2018/19 | €m / % | Q4 2017/18 | Q4 2018/19 | |
EBITDA | 443 | 627 | EBITDA | 399 | 533 | |
D&A | -141 | -155 | D&A | -131 | -144 | |
EBIT | 302 | 472 | EBIT | 269 | 389 | |
Interest and investment result | -38 | -27 | Interest and investment result | -40 | -29 | |
Other financial result | 0 | 4 | Other financial result | 1 | 4 | |
Net financial result | -38 | -23 | Net financial result | -38 | -24 | |
EBT | 264 | 449 | EBT | 230 | 365 | |
Tax rate | 23% | 40% | Tax rate | 23% | 43% | |
Net income | 199 | 266 | Net income | 176 | 206 | |
EPS in € | 0.55 | 0.73 | EPS in € | 0.48 | 0.57 | |
43 12/12/2019 © METRO AG.
Guidance view (Pre IFRS 5 China) | Continuing operations only |
FCF IN Q4
€m / % | Q4 2017/18 | Q4 2018/19 | €m / % | Q4 2017/18 | Q4 2018/19 | |
EBITDA | 443 | 627 | EBITDA | 399 | 533 | |
Change in NWC | 546 | 469 | Change in NWC | NA | NA | |
Capex1 | -208 | -182 | Capex1 | 190 | 168 | |
FCF | 780 | 914 | FCF | NA | NA | |
1Capex excl. M&A and finance leases
44 12/12/2019 © METRO AG.
Continuing operations only
SALES TO EBITDA
(1/4)
METRO Germany | METRO Western Europe | |||||||
€m / % | Q4 2017/18 | Q4 2018/19 | €m / % | Q4 2017/18 | Q4 2018/19 | |||
Sales | 1,154 | 1,154 | Sales | 2,659 | 2,714 | |||
Like-for-like growth | -0.3% | 0.6% | Like-for-like growth | -0.7% | 2.2% | |||
Reported growth | -0.9% | 0.0% | Reported growth | -0.1% | 2.0% | |||
EBITDA excl. RE gains | 16 | 18 | EBITDA excl. RE gains | 156 | 150 | |||
EBITDA margin | 1.4% | 1.6% | EBITDA margin | 5.9% | 5.5% | |||
Real estate gains | 0 | 0 | Real estate gains | 38 | 0 | |||
Total EBITDA | 16 | 18 | Total EBITDA | 194 | 150 | |||
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Continuing operations only
SALES TO EBITDA
(2/4)
METRO Russia | METRO Eastern Europe | |||||||
€m / % | Q4 2017/18 | Q4 2018/19 | €m / % | Q4 2017/18 | Q4 2018/19 | |||
Sales | 604 | 618 | Sales | 1,809 | 1,935 | |||
Like-for-like growth | -6.6% | -6.3% | Like-for-like growth | 6.5% | 5.2% | |||
Reported growth | -16.1% | 2.2% | Reported growth | -1.9% | 7.0% | |||
EBITDA excl. RE gains | 52 | 55 | EBITDA excl. RE gains | 107 | 102 | |||
thereof FX | 5 | thereof FX | 1 | |||||
EBITDA margin | 8.6% | 8.9% | EBITDA margin | 5.9% | 5.3% | |||
Real estate gains | 0 | 0 | Real estate gains | 11 | 179 | |||
Total EBITDA | 52 | 55 | Total EBITDA | 118 | 281 | |||
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Guidance view (Pre IFRS 5 China) | Continuing operations only |
SALES TO EBITDA
(3/4)
METRO Asia | METRO Asia | |||||||
€m / % | Q4 2017/18 | Q4 2018/19 | €m / % | Q4 2017/18 | Q4 2018/19 | |||
Sales | 1,089 | 1,179 | Sales | 399 | 426 | |||
Like-for-like growth | 7.3% | 5.7% | Like-for-like growth | 10.3% | 4.9% | |||
Reported growth | 5.2% | 8.2% | Reported growth | 5.6% | 7.0% | |||
EBITDA excl. RE gains | 41 | 50 | EBITDA excl. RE gains | -2 | 0 | |||
thereof FX | 0 | thereof FX | -1 | |||||
EBITDA margin | 3.8% | 4.3% | EBITDA margin | -0.5% | 0.1% | |||
Real estate gains | 5 | 127 | Real estate gains | 5 | 77 | |||
Total EBITDA | 47 | 177 | Total EBITDA | 3 | 77 | |||
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Guidance view (Pre IFRS 5 China) | Continuing operations only |
SALES TO EBITDA
(4/4)
Others | Others | ||||||||
€m | Q4 2017/18 | Q4 2018/19 | €m | Q4 2017/18 | Q4 2018/19 | ||||
Sales | 9 | 9 | Sales | 9 | 9 | ||||
EBITDA excl. RE gains | -49 | -71 | EBITDA excl. RE gains | -49 | -65 | |
thereof FX | thereof FX | 0 | ||||
Real estate gains | 66 | 17 | Real estate gains | 66 | 17 | |
Total EBITDA | 17 | -54 | Total EBITDA | 17 | -48 | |
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SALES BY QUARTER
2018/19 | Change (EUR) | Change (local currency) | Like-for-like | |||||||||
% | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
METRO | -1.0% | -0.4% | 2.4% | 3.3% | 1.9% | 1.3% | 3.2% | 2.2% | 2.1% | 1.0% | 3.1% | 2.1% |
METRO Wholesale Germany | -1.3% | -4.1% | 3.0% | 0.0% | -1.3% | -4.1% | 3.0% | 0.0% | -0.2% | -3.1% | 3.6% | 0.6% |
METRO Wholesale Western Europe | 1.2% | -0.3% | 2.2% | 2.0% | 1.2% | -0.3% | 2.2% | 2.0% | 1.0% | -0.3% | 2.2% | 2.2% |
METRO Wholesale Russia | -11.9% | -8.3% | -0.8% | 2.2% | -2.8% | -2.3% | -3.2% | -5.2% | -2.4% | -4.0% | -4.8% | -6.3% |
METRO Wholesale Eastern Europe | 0.8% | 2.4% | 3.4% | 7.0% | 6.3% | 6.8% | 7.3% | 5.4% | 6.4% | 6.8% | 7.1% | 5.2% |
METRO Wholesale Asia | 3.0% | 6.7% | 4.5% | 7.0% | 9.8% | 7.6% | 5.4% | 6.4% | 7.4% | 5.1% | 3.8% | 4.9% |
METRO Guidance view (Pre IFRS 5 China) | ||||||||||||
METRO | -0.6% | 0.2% | 2.8% | 3.9% | 2.1% | 1.6% | 3.6% | 2.7% | 2.3% | 1.2% | 3.4% | 2.5% |
METRO Wholesale Asia | 3.3% | 5.5% | 5.7% | 8.2% | 6.9% | 4.7% | 6.8% | 7.0% | 5.9% | 3.6% | 5.5% | 5.7% |
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02FULL YEAR 2018/19
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Guidance view (Pre IFRS 5 China)
KEY FINANCIALS
GUIDANCE 2018/19(including METRO China, excluding Real) | BEFORE IFRS 5 | BEFORE IFRS 5 | |||
€ million (unless noted otherwise) | ACT | Guidance/ | |||
Outlook | |||||
17/18 | 18/19 | 18/19 | |||
before IFRS 5 | before IFRS 5 | before IFRS 5 | |||
Annual Report Guidance | |||||
Sales growth (constant fx and before portfolio measures) | 1.3% | 2.4% | 1 to 3% | ||
LfL sales growth (constant fx and before portfolio measures) | 1.5% | 2.5% | 1 to 3% | ||
EBITDA excl. Real Estate gains (constant fx and before portfolio measures) | 1,242 | -4,2%1 | -2 to -6% | ||
Comments on outlook | |||||
Real estate gains | 128 | 388 | 250 to 300m€ | ||
D&A | -547 | -577 | ~-590m€ | ||
Net financial result2 | -130 | -111 | ~-150m€ | ||
Tax rate (in %) | 35.4% | 39.0% | 37 to 39% | ||
EPS | 1.22 | 1.44 | Roughly stable | ||
Capex3 | -552 | -455 | ~-0,6bn€ | ||
FCF conversion | 71% | 74% | 50 to 60% |
Continuing operations only
CONTINUING OPERATIONS
ACT | |
17/18 | 18/19 |
continuing | continuing |
operations | operations |
1.3% | 2.2% |
1.3% | 2.1% |
1,088 | 1,021 |
128 | 338 |
-503 | -531 |
-137 | -119 |
37.5% | 42.0% |
0.98 | 1.12 |
-517 | -429 |
69% | 70% |
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Guidance view (Pre IFRS 5 China)
REGIONAL VIEW
Key financials METRO - pre IFRS 5 | Key financials METRO - continuing operations | |||||||||||||
(incl. METRO China, excl. Real) | (excl. METRO China, excl. Real) | |||||||||||||
€ million unless noted otherwise | Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 FY 18/19 | Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 FY 18/19 | ||||||||||||
Sales - External sales | ||||||||||||||
METRO Germany | 1,352 | 1,024 | 1,205 | 1,154 | 4,735 | 1,352 | 1,024 | 1,205 | 1,154 | 4,735 | ||||
METRO Western Europe excl. Germany | 2,921 | 2,333 | 2,784 | 2,714 | 10,752 | 2,921 | 2,333 | 2,784 | 2,714 | 10,752 | ||||
METRO Russia | 801 | 573 | 671 | 618 | 2,662 | 801 | 573 | 671 | 618 | 2,662 | ||||
METRO Eastern Europe excl. Russia | 1,861 | 1,550 | 1,846 | 1,935 | 7,191 | 1,861 | 1,550 | 1,846 | 1,935 | 7,191 | ||||
METRO Asia | 1,072 | 1,255 | 1,037 | 1,179 | 4,543 | 443 | 401 | 427 | 426 | 1,696 | Changes after IFRS 5 | |||
Others | 10 | 18 | 7 | 9 | 44 | 11 | 18 | 8 | 9 | 46 | Changes after IFRS 5 | |||
Consolidation | ||||||||||||||
METRO | 8,017 | 6,752 | 7,551 | 7,608 | 29,928 | 7,388 | 5,898 | 6,940 | 6,856 | 27,082 | Changes after IFRS 5 | |||
METRO China (informative) | 629 | 854 | 610 | 752 | 2,846 | |||||||||
Sales growth (%, €) | ||||||||||||||
METRO Germany | -1.3% | -4.1% | 3.0% | 0.0% | -0.5% | -1.3% | -4.1% | 3.0% | 0.0% | -0.5% | ||||
METRO Western Europe excl. Germany | 1.2% | -0.3% | 2.2% | 2.0% | 1.3% | 1.2% | -0.3% | 2.2% | 2.0% | 1.3% | ||||
METRO Russia | -11.9% | -8.3% | -0.8% | 2.2% | -5.4% | -11.9% | -8.3% | -0.8% | 2.2% | -5.4% | ||||
METRO Eastern Europe excl. Russia | 0.8% | 2.4% | 3.4% | 7.0% | 3.4% | 0.8% | 2.4% | 3.4% | 7.0% | 3.4% | ||||
METRO Asia | 3.3% | 5.5% | 5.7% | 8.2% | 5.7% | 3.0% | 6.7% | 4.5% | 7.0% | 5.2% | Changes after IFRS 5 | |||
Others | ||||||||||||||
Consolidation | ||||||||||||||
METRO | -0.6% | 0.2% | 2.8% | 3.9% | 1.5% | -1.0% | -0.4% | 2.4% | 3.3% | 1.1% | Changes after IFRS 5 | |||
METRO China (informative) | 3.6% | 4.9% | 6.6% | 8.9% | 6.0% | |||||||||
Sales growth (%, local currency) | ||||||||||||||
METRO Germany | -1.3% | -4.1% | 3.0% | 0.0% | -0.6% | -1.3% | -4.1% | 3.0% | 0.0% | -0.6% | ||||
METRO Western Europe excl. Germany | 5.7% | -0.3% | 2.2% | 2.0% | 1.3% | 5.7% | -0.3% | 2.2% | 2.0% | 1.3% | ||||
METRO Russia | -2.8% | -2.3% | -3.2% | -5.2% | -3.3% | -2.8% | -2.3% | -3.2% | -5.2% | -3.3% | ||||
METRO Eastern Europe excl. Russia | 6.3% | 6.8% | 7.3% | 5.4% | 6.4% | 6.3% | 6.8% | 7.3% | 5.4% | 6.4% | ||||
METRO Asia | 6.9% | 4.7% | 6.8% | 7.0% | 6.3% | 9.8% | 7.6% | 5.4% | 6.4% | 7.3% | Changes after IFRS 5 | |||
Others | ||||||||||||||
Consolidation | ||||||||||||||
METRO | 2.1% | 1.6% | 3.6% | 2.7% | 2.5% | 1.9% | 1.3% | 3.2% | 2.2% | 2.2% | Changes after IFRS 5 | |||
METRO China (informative) | 5.0% | 3.4% | 7.8% | 7.3% | 5.7% | |||||||||
Like-for-like growth (%) | ||||||||||||||
METRO Germany | -0.2% | -3.1% | 3.6% | 0.6% | 0.3% | -0.2% | -3.1% | 3.6% | 0.6% | 0.3% | ||||
METRO Western Europe excl. Germany | 1.0% | -0.3% | 2.2% | 2.2% | 1.3% | 1.0% | -0.3% | 2.2% | 2.2% | 1.3% | ||||
METRO Russia | -2.4% | -4.0% | -4.8% | -6.3% | -4.3% | -2.4% | -4.0% | -4.8% | -6.3% | -4.3% | ||||
METRO Eastern Europe excl. Russia | 6.4% | 6.8% | 7.1% | 5.2% | 6.3% | 6.4% | 6.8% | 7.1% | 5.2% | 6.3% | ||||
METRO Asia | 5.9% | 3.6% | 5.5% | 5.7% | 5.1% | 7.4% | 5.1% | 3.8% | 4.9% | 5.3% | Changes after IFRS 5 | |||
Others | ||||||||||||||
Consolidation | ||||||||||||||
METRO | 2.3% | 1.2% | 3.4% | 2.5% | 2.4% | 2.1% | 1.0% | 3.1% | 2.1% | 2.1% | Changes after IFRS 5 | |||
METRO China (informative) | 5.0% | 2.9% | 6.7% | 6.1% | 5.0% | |||||||||
EBITDA excl. Earnings contributions from real estate transactions | ||||||||||||||
METRO Germany | 68 | -23 | 31 | 18 | 95 | 68 | -23 | 31 | 18 | 95 | ||||
METRO Western Europe excl. Germany | 175 | 20 | 154 | 150 | 499 | 175 | 20 | 154 | 150 | 499 | ||||
METRO Russia | 79 | 30 | 56 | 55 | 220 | 79 | 30 | 56 | 55 | 220 | ||||
METRO Eastern Europe excl. Russia | 113 | 42 | 86 | 102 | 344 | 113 | 42 | 86 | 102 | 344 | ||||
METRO Asia | 36 | 48 | 42 | 50 | 176 | 10 | 0 | 1 | 0 | 11 | Changes after IFRS 5 | |||
Others | -2 | -34 | -54 | -71 | -161 | -2 | -30 | -50 | -65 | -148 | Changes after IFRS 5 | |||
Consolidation | 0 | 0 | 0 | -1 | 0 | 0 | 0 | 0 | 0 | 0 | Changes after IFRS 5 | |||
METRO | 470 | 83 | 316 | 304 | 1,173 | 444 | 38 | 279 | 261 | 1,021 | Changes after IFRS 5 | |||
METRO China (informative) | 26 | 45 | 37 | 44 | 152 | |||||||||
METRO | 335 | -29 | 207 | 472 | 985 | 320 | -63 | 181 | 389 | 828 | Changes after IFRS 5 | |||
Net financial result | -40 | -23 | -26 | -23 | -111 | -42 | -26 | -26 | -24 | -119 | Changes after IFRS 5 | |||
Earnings before taxes (EBT) | 296 | -52 | 181 | 449 | 874 | 278 | -89 | 155 | 365 | 709 | Changes after IFRS 5 | |||
Income taxes1 | -112 | 20 | -69 | -180 | -341 | -108 | 29 | -62 | -157 | -298 | Changes after IFRS 5 | |||
Tax rate (%, cum.) | 38% | 38% | 38% | 39% | 39% | 39% | 42% | 41% | 42% | 42% | Changes after IFRS 5 | |||
Profit or loss for the period1 | 184 | -32 | 113 | 269 | 533 | 171 | -60 | 93 | 208 | 411 | Changes after IFRS 5 | |||
Profit or loss for the period attributable to non-controlling int | -3 | -2 | -3 | -3 | -10 | -3 | 1 | -1 | -2 | -6 | Changes after IFRS 5 | |||
Profit or loss for the period attributable to the shareholders o | 181 | -34 | 110 | 266 | 523 | 168 | -60 | 92 | 206 | 405 | Changes after IFRS 5 | |||
Total No. of shares (million) | 363.1 | 363.1 | 363.1 | 363.1 | 363.1 | 363.1 | 363.1 | 363.1 | 363.1 | 363.1 | Changes after IFRS 5 | |||
Earnings per share (€)1 | 0.50 | -0.09 | 0.30 | 0.73 | 1.44 | 0.46 | -0.16 | 0.25 | 0.57 | 1.12 | Changes after IFRS 5 | |||
Continuing operations only
Link:
https://www.metroag.de/en/newsroom/publications?q=mcf_investors
#Financial Statement
52 12/12/2019 © METRO AG.
Continuing operations only
PROFIT AND LOSS STATEMENT
P&L | CONTINUING OPERATIONS | |||
€ million (unless noted otherwise) | continuing operations | |||
17/18 | 18/19 | |||
continuing | continuing | |||
operations | operations | |||
Sales revenues | 26,792 | 27,082 | ||
Cost of sales | -22,278 | -22,476 | ||
Gross profit on sales | 4,514 | 4,606 | ||
Other operating income | 1,271 | 1,405 | ||
Selling expenses | -4,021 | -4,092 | ||
General administrative expenses | -773 | -822 | ||
Other operating expenses | -293 | -279 | ||
Earnings from impairment of financial assets | 0 | -14 | ||
Earnings share of operating companies recognised at equity | 14 | 24 | ||
EBIT | 713 | 828 | ||
Earnings share of non-operating companies recognised at equity | 0 | 0 | ||
Other investment result | 0 | -1 | ||
Interest income | 27 | 29 | ||
Interest expenses | -163 | -148 | ||
Other financial result | -2 | 1 | ||
Net financial result | -137 | -119 | ||
EBT | 576 | 709 | ||
Income taxes | -216 | -298 | ||
tax rate (in %) | 37.5% | 42.0% | ||
Profit or loss for the period from continuing operations | 359 | 411 | ||
Profit or loss for the period from discontinued operations after taxes | ||||
Profit or loss for the period | ||||
Profit or loss for the period attributable to NCI | ||||
from continuing operations | 3 | 6 | ||
from discontinued operations | ||||
Profit or loss for the period attributable to shareholders of METRO | 357 | 405 | ||
from continuing operations | ||||
from discontinued operations | ||||
EPS (in €) | ||||
from continuing operations (in €) | 0.98 | 1.12 | ||
from discontinued operations (in €) | ||||
EBITDA excl. Real Estate gains | 1,088 | 1,021 | ||
Real Estate gains | 128 | 338 | ||
EBITDA | 1,216 | 1,359 | ||
D&A | -503 | -531 | ||
EBIT | 713 | 828 | ||
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Continuing operations only
BALANCE SHEET1
Assets | Equity and Liabilities | ||||
€ million | FY 17/18 | FY 18/19 | FY 17/18 | FY 18/19 | |
Non-current assets | 7,503 | 6,736 | Equity | 3,074 | 2,735 |
Goodwill | 797 | 785 | METRO AG Shareholder interest | 3,033 | 2,703 |
Other intangible assets | 499 | 562 | Non-controlling interests | 41 | 32 |
Tangible assets | 5,314 | 4,760 | Non-current liabilities | 3,427 | 3,419 |
Investment properties | 97 | 82 | |||
Financial assets | 88 | 97 | Provisions for post employment benefits plans and similar obligat | 468 | 543 |
Investments accounted for using the equity method | 178 | 179 | Other provisions | 126 | 132 |
Other financial assets | 39 | 37 | Borrowings | 2,590 | 2,498 |
Other non-financial assets | 163 | 43 | Other financial liabilities | 56 | 56 |
Deferred tax assets | 329 | 191 | Other non-financial liabilities | 67 | 71 |
Current assets | 7,703 | 7,761 | Deferred tax liabilities | 120 | 119 |
Current liabilities | 8,705 | 8,343 | |||
Inventories | 2,108 | 1,946 | |||
Trade receivables | 571 | 482 | Trade liabilities | 3,993 | 3,572 |
Financial assets | 1 | 4 | Provisions | 274 | 168 |
Other financial assets | 561 | 603 | Borrowings | 1,420 | 871 |
Other non-financial assets | 353 | 279 | Other financial liabilities | 744 | 728 |
Entitlements to income tax refunds | 206 | 190 | Other non-financial liabilities | 392 | 233 |
Cash and cash equivalents | 1,298 | 500 | Income tax liabilities | 191 | 169 |
Assets held for sale | 2,605 | 3,758 | Liabilities related to assets held for sale | 1,691 | 2,601 |
Total | 15,206 | 14,497 | 15,206 | 14,497 |
1Continuing operations, 2018/18 excluding METRO China and 2017/18 including METRO China
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Continuing operations only
CASH FLOW STATEMENT
€ million | FY 17/18 | FY 18/19 |
EBIT | 713 | 828 |
Depreciation/amortisation/impairment losses/reversal of impairment losses of assets excl. | 503 | 532 |
financial investments | ||
Change in provisions for post-employment benefits plans and other provisions | -202 | -47 |
Change in net working capital | 141 | 27 |
Income taxes paid | -193 | -215 |
Reclassification of gains (-) / losses (+) from the disposal of fixed assets | -137 | -356 |
Other | -59 | 28 |
Cash flow from operating activities of continuing operations | 766 | 796 |
Cash flow from operating activities of discontinuing operations | 139 | 157 |
Cash flow from operating activities | 905 | 953 |
Acquisition of subsidiaries | 0 | -1 |
Investments in property, plant and equipment and in investment property (excl. finance leases) | -408 | -258 |
Other investments | -165 | -198 |
Investments in monetary assets | -1 | -9 |
Disposals of subsidiaries | -3 | 0 |
Disposal of fixed assets | 285 | 505 |
Disposal of financial assets | 0 | 7 |
Cash flow from investing activities of continuing operations | -292 | 46 |
Cash flow from investing activities of discontinuing operations | -89 | -136 |
Cash flow from investing activities | -381 | -90 |
Dividends paid | -254 | -254 |
Redemption of liabilities from put options of non-controlling interests | 0 | -2 |
Proceeds from new borrowings | 2,772 | 6,122 |
Redemption of borrowings | -2,983 | -6,844 |
Interest paid | -141 | -161 |
Interest received | 20 | 28 |
Profit and loss transfers and other financing activities | 8 | -4 |
Cash flow from financing activities of continuing operations | -587 | -1122 |
Cash flow from financing activities of discontinuing operations | -74 | -109 |
Cash flow from financing activities | -661 | -1231 |
Total cash flows | -137 | -368 |
Cash flow
- Theoperating cash flow came in at €0.8 bn, above last year. Mainly driven by higher real estate gains, positive contribution from net working capital
- Theinvesting cash flow came down from-€0.3bn to 0.05bn EUR driven by higher real estate gains
- Thefinancing cash flow changed from-€0.6bn to-€1.1bn due to higher repayment of debt
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FINANCIAL REPORTING AFFECTED BY ACCOUNTING CHANGES & TRANSACTIONS
IFRS 5
(discontinued operations)
IFRS 15
(revenue from contracts
with customers)
- METRO Chinareported as discontinued operations from 30 Sep 19 onwards
- Impacts all financial statements as well as thesegments 'Asia' and 'Others'
- Adjustment of PY balance sheet is visible only in the combined management report
- Stop of regular depreciation for China from 1 Oct 2019 onwards
- Hypermarket businesscontinues to be reported as discontinued operations
- IFRS 5 impacts METRO Wholesale Asia, Segments Others and Consolidation
- Other regions are not affected
- Please refer to our homepage and appendix for additional details
- IFRS 15 replaces IAS 18 and IAS 11
- Applied since1 Oct 2018; no adjustment to previous year's figures
- Application affected some reclassifications in balance sheet and triggered a€33 m sales reduction(mainly Germany, LFL view has been adjusted)
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03OTHERS
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Guidance view (Pre IFRS 5 China) | Continuing operations only |
OPERATIONAL METRICS
METRO Guidance (Pre IFRS 5 Chin | Continuing operations | |||
2017/18 | 2018/19 | 2017/18 | 2018/19 | |
Food Share in Total sales | 88% | 89% | 88% | 89% |
Non food share in Total sales | 12% | 11% | 12% | 11% |
FSD (excl. TAC/PU) in Total sales | 17% | 18% | 16% | 17% |
Own Brand Share in Like-for-like sales1 | 17% | 17% | 17% | 17% |
1Share in like-for-like sales, excluding acquisitions
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Continuing operations only
METRO WHOLESALE - KEY STATISTICS
Sales | Stores | |||
€m | FY 2017/18 | FY 2018/19 | FY 2017/18 | FY 2018/19 |
Germany | 4,761 | 4,735 | 103 | 103 |
Austria | 768 | 760 | 12 | 12 |
Belgium | 734 | 737 | 17 | 17 |
France | 4982 | 5114 | 98 | 98 |
Italy | 1741 | 1722 | 49 | 49 |
Netherlands | 777 | 767 | 17 | 17 |
Portugal | 379 | 398 | 10 | 10 |
Spain | 1229 | 1253 | 37 | 37 |
Western Europe (w/o Germany) | 10,609 | 10,752 | 240 | 240 |
Russia | 2,815 | 2,662 | 93 | 94 |
Bulgaria | 379 | 395 | 11 | 11 |
Croatia | 221 | 226 | 9 | 10 |
Czech Republic | 1,073 | 1,062 | 13 | 13 |
Hungary | 470 | 471 | 13 | 13 |
Kazachstan | 73 | 80 | 6 | 6 |
Moldova | 91 | 102 | 3 | 3 |
Poland | 1,406 | 1,385 | 29 | 29 |
Romania | 1,083 | 1,190 | 30 | 30 |
Serbia | 205 | 195 | 9 | 9 |
Slovakia | 427 | 432 | 6 | 6 |
Turkey | 1,000 | 1,027 | 33 | 34 |
Ukraine | 523 | 627 | 31 | 31 |
Eastern Europe (w/o Russia) | 6,952 | 7,191 | 193 | 195 |
India | 776 | 848 | 27 | 27 |
Japan | 265 | 287 | 10 | 10 |
Pakistan | 339 | 310 | 9 | 9 |
Myanmar | 0 | 2 | ||
Classic Fine Food | 232 | 250 | 0 | |
Asia (incl. CFF) | 1,612 | 1,696 | 46 | 46 |
Others | 43 | 46 | 0 | |
METRO | 26,792 | 27,082 | 675 | 678 |
2017/18 | 2018/19 | |
Stores | 675 | 678 |
Selling space ('000 sqm) | 5,234 | 4,728 |
Ø store size (sqm) | 6,806 | 6,973 |
Ø Sales / sqm (EUR) | 5,629 | 5,729 |
Employees (FTE) | 104,912 | 101,654 |
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Guidance view (Pre IFRS 5 China)
CAPEX AND CAPEX ALLOCATION
€m | FY 2017/18 | FY 2018/19 |
Expansion | 88 | 20 |
Remodelling | 60 | 25 |
FSD | 38 | 31 |
Maintenance | 157 | 159 |
Digital/IT | 178 | 204 |
Others | 31 | 18 |
Capex (FCF definition) | 552 | 455 |
M&A | 0 | 1 |
Financial Lease | 47 | 69 |
Investments | 600 | 525 |
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Continuing operations only
REAL ESTATE1
2018/19 | Total | Owned | ||
('000 sqm) | Stores | Space ('000 sqm) | Stores | Space ('000 sqm) |
METRO | 678 | 4.728 | 355 | 2.739 |
METRO Wholesale Germany | 103 | 915 | 10 | 88 |
METRO Wholesale Western Europe | 240 | 1.531 | 84 | 745 |
METRO Wholesale Russia2 | 94 | 688 | 90 | 665 |
METRO Wholesale Eastern Europe | 195 | 1.391 | 153 | 1.164 |
METRO Wholesale Asia | 46 | 202 | 18 | 77 |
12018/19 figures on space in stores refers to selling space operated by METRO Wholesale i.e. excluding selling space operated by third parties 2For METRO Russia, shop-in-shop has been included into the stores space
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Continuing operations only
FACT SHEET ON EXTERNAL FINANCING
Interest expense | Maturity Profile |
1
Net debt at business year end | External Funding Mix |
1
1Continuing operations, 2017/18 excluding METRO China and 2017/18 including METRO China
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CONTACT
Investor Relations
METRO AG
Metro-Straße 1
40235 Düsseldorf
Germany
T +49 211 6886-1280
F +49 211 6886-73-3759
-
investorrelations@metro.de
www.metroag.de
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Metro AG published this content on 12 December 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 December 2019 08:50:12 UTC