Metro : Half-yearly Financial Report H1/Q2 2020/21

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CONTENT

1. Summary

1. Overview
2. Interim Group management report 6 Macroeconomic conditions
   8 Earnings, financial and asset position of the group
   12 METRO Segments
   16 Opportunities and risks
   17 Outlook

1. Condensed interim financial report 18 Income statement
   19 Reconciliation from profit or loss for the period to total comprehensive income 20 Balance sheet
   22 Cash flow statement
   24 Statement of changes in equity

1. Notes on the condensed interim financial report 25 Segment reporting
   29 Group accounting principles and methods
   31 Notes on business combinations
   34 Notes to the income statement
   35 Notes to the balance sheet
   38 Report on events after the closing date
   39 Other disclosures

1. Responsibility statement of the legal representatives
2. Audit review report
3. Financial calendar, imprint and disclaimer

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ROBUST SALES DEVELOPMENT AND SOLID EARNINGS IN Q2 2020/21 DESPITE CONTINUED LOCKDOWNS

With the sale of the majority stake in METRO China and the hypermarket business completed in the financial year 2019/20, the differentiation of reporting into continuing and discontinued operations in accordance with IFRS 5 will no longer apply from the financial year 2020/21 onwards. The following presentations in the reporting year therefore relate to the group units that were reported as continuing operations in the previous year.

The sales and EBITDA outlook for the financial year 2020/21, which was published on 14 December 2020, was adjusted on 20 April 2021. This was due to the continuous prolongation and the high volatility of regulatory measures related to Covid-19. These measures continue to significantly restrict public life in many of the METRO countries. METRO had so far assumed that re-openings of hospitality businesses would be starting in April at the latest. This appears no longer realistic on a broad scale before June. The Management Board, however, is still convinced of the fast and substantial recovery of the hospitality and tourism industry upon release of the governmental restrictions and has seen evidence of this in the countries where hospitality businesses have been reopened partially or in full.

The Management Board therefore decided to adjust the outlook for financial year 2020/21 on 20 April 2021. Based on the updated assumption of hospitality re-openings broadly between June and August, METRO now expects

• Sales (both total sales and like-for-like) decline by approximately -3% to -6% to previous year (previously: slightly below previous year)
• EBITDA adjusted decline by roughly € -50 million to €-175 million to previous year (previously: decline by mid double-digit euro million amount)

The outlook assumes stable exchange rates and no further adjustments to the portfolio. The sensitivity of sales and earnings to the duration and severity of governmental restrictions is the highest for hospitality driven re- gions, esp. in the segment Western Europe. In contrast, the segments Russia and Asia are expected to perform better than the group.

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H1:

Sales in local currency declined by -11.5%.Like-for-like sales decreased by -11.6%. Reported sales declined by -16.0% to €11.4 billion

Adjusted EBITDA (excluding transformation costs and earnings contributions from real estate transactions) amounted to €490 million (H1 2019/20: €659 million). In H1 2020/21 transformation costs of €12 million

(H1 2019/20: €45 million) were incurred. Earnings contributions from real estate transactions amounted to

€42 million (H1 2019/20: €1 million). EBITDA reached €520 million (H1 2019/20: €615 million)

EBITDA adjusted for currency effects amounted to €-120 million, or -20%, below the previous year

The profit or loss for the period attributable to METRO shareholders reached €-32 million in H1 2020/21. In

H1 2019/20, the profit or loss for the period in continuing operations amounted to €5 million and in discontinued operations €-126 million

The earnings per share in H1 2020/21 dropped to €-0.09. In H1 2019/20, earnings per share in continuing operations amounted to €0.01 and in discontinued operations €-0.35

The net debt was reduced to €4.5 billion (31.3.2020: €6.2 billion)

Q2:

Sales in local currency declined by -11.9%.Like-for-like sales decreased by -12.0%. Reported sales declined by -15.9% to €5.1 billion

Adjusted EBITDA (excluding transformation costs and earnings contributions from real estate transactions) amounted to €114 million (Q2 2019/20: €133 million). In Q2 2020/21 transformation costs of €11 million

(Q2 2019/20: €45 million) were incurred. Earnings contributions from real estate transactions amounted to

€17 million (Q2 2019/20: €0 million). EBITDA reached €121 million (Q2 2019/20: €87 million)

The profit or loss for the period attributable to METRO shareholders reached €-131 million in Q2 2020/21. In Q2 2019/20, the profit or loss for the period in continuing operations amounted to €-116 million and in discontinued operations €29 million

The earnings per share in Q2 2020/21 dropped to €-0.36. In Q2 2019/20, earnings per share in continuing operations amounted to €-0.32 and in discontinued operations €0.08

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OVERVIEW

H1/Q2 2020/21

		H1		H1				Q2		Q2
€ million	2019/20	2020/21		Change	2019/20	2020/21		Dev.
Sales	13,555		11,388	-16.0%	6,006		5,050	-15.9%
EBITDA adjusted	659		490	-25.7%	133		114	-14.2%
Transformation costs	45		12	-73.0%	45		11	-76.5%
Earnings contributions from real
estate transactions	1		42	-	0		17	-
EBITDA	615		520	-15.5%	87		121	38.2%
EBIT	184		116	-37.2%	-143		-85	40.8%
Earnings before taxes EBT	24		29	21.1%	-252		-130	48.4%
Profit or loss for the period from
continuing operations¹	5		-32	-	-116		-131	-
Earnings per share from continuing
operations (€)	0.01		-0.09	-	-0.32		-0.36	-
Profit or loss for the period¹	-121		-32	-	-87		-131	-
Earnings per share (€)	-0.33		-0.09	-	-0.24		-0.36	-

¹ attributable to METRO shareholders.