Metro : Half-yearly financial report H1/Q2 2022/23

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2

CONTENT

1. Summary
2. Overview
3. Interim Group management report 5 Macroeconomic conditions
   6 Earnings, financial and asset position of the group
   9 METRO Segments
   13 Opportunities and risks

14 Outlook

15 Condensed interim financial report

15 Income statement

16 Reconciliation from profit or loss for the period to total comprehensive income 1 7Balance sheet

19 Cash flow statement

20 Statement of changes in equity

21 Notes on the condensed interim financial report

21 Segment reporting

23 Group accounting principles and methods

24 Notes to the income statement

26 Notes to the balance sheet

28 Events after closing date

29 Other disclosures

31 Responsibility statement of the legal representatives

32 Audit review report

33 Financial calendar, imprint and disclaimer

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METRO WITH 10% SALES GROWTH IN Q2

STRATEGY IMPLEMENTATION SHOWS SUCCESS

H1:

• Total sales in local currency increased by 7.7%. Reported sales increased by 8.3% to €15.0 billion
• Sales channel growth: sales in the store-based business grew to €11.7 billion (+5.5%), delivery sales to €3.3 billion (+19.5%) and METRO MARKETS sales to €45 million (+46.6%)
• Adjusted EBITDA was €577 million (H1 2021/22: €678 million), earnings contributions from real estate
  transactions amounted to €207 million (H1 2021/22: €13 million). Transformation costs in the amount of
  €-3 million (H1 2021/22: €-6 million). EBITDA increased to €787 million (H1 2021/22: €697 million)
• Cyber-attackin Q1: estimated sales loss of a low three-digit million euros range and estimated negative effect in EBITDA of a mid to high double-digit million euros range
• Earnings per share amounted to €1.14 (H1 2021/22: €-0.25). The increase is significantly driven by a real estate development project that includes the sale of parts of the METRO Campus. In addition, there were non-cash currency effects in the financial result in the amount of slightly more than €0.50, while the previous year's result was still burdened with more than €-200 million or more than €-0.60 in the earnings per share due to the war (impairments and currency-related negative effects in the financial result)
• In the guidance view (adjusted for currency and portfolio effects), sales rose by 10.6% and adjusted EBITDA was €120 million below the previous year's level
• Outlook for sales and adjusted EBITDA for the financial year 2022/23 (sales growth 5-10%, adjusted EBITDA decline of €75-225 million) and mid-term ambitions (sales growth 5-10%, EBITDA growth 5-7%) confirmed

Q2:

• Total sales in local currency increased by 10.5%. Reported sales increased by 10.4% to €6.9 billion
• Sales channel growth: sales in the store-based business grew to €5.2 billion (+7.4%), delivery sales to €1.6 billion (+21.0%) and METRO MARKETS sales to €24 million (+46.9%)
• Adjusted EBITDA was €111 million (Q2 2021/22: €157 million), transformation costs in the amount of
  €-2 million (Q2 2021/22: €-2 million). The EBITDA was €114 million (Q2 2021/22: €169 million)
• Earnings per share amounted to €-0.29 (Q2 2021/22: €-0.78)

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OVERVIEW

H1 2022/23

METRO IN FIGURES

Key financial figures (€ million)

H1 2021/22

H1 2022/23

Change

Change in %

Sales (net)

Adjusted EBITDA

EBIT

Earnings per share in € (basic = diluted)

13,849

678

182

-0.25

15,004

577

369

1.14

1,155 -101 187

1.39

8.3%

-14.9%

-

-

MULTICHANNEL DEVELOPMENT

Sales development (€ million)

H1 2021/22

H1 2022/23

Change

Ambition FY 2030

Store-based and other business	11,086
FSD	2,733
METRO MARKETS Sales	31
METRO MARKETS Marketplace sales1	63

11,692

3,266

45

73

~1.2 x vs.

607 2020/21

> 3 x vs.

1. 2020/21

1. > €3 billion

1Total volume of METRO MARKETS platform (and third-party platforms) excluding VAT and after cancellations, but before any deductions; includes seller sales in full.

NETWORK

30.09.2022

31.03.20231

Change

Change in %

Stores & delivery (number of countries)

Marketplace (number of countries)

DISH POS2 (number of countries)

Stores (number of locations)

thereof delivery OOS3 (number of locations)

FSD depots (number of locations)

31

3

0

661

(567)

64

30

5

2

628

(535)

65

-1

2

2 -33(-32)

1

-3%

-

-

-5%

(-6%)

2%

1Due to the sale of the Indian business (closing expected in the first half of calendar year 2023), METRO India is no longer included in the country portfolio and the 31 Indian METRO stores are no longer included in the store network.

1. DISH POS is an all-in-onecloud-based POS system with solutions for the hospitality industry. The product was developed by POS provider Eijsink. After the acquisition by METRO Hospitality Digital in March 2022, the product was further developed and integrated into the digital Dish Tools offering.
2. OOS refers to the existing METRO location portfolio and includes METRO stores that deliver from the store on the one hand and stores that operate their own depot in the store on the other.

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INTERIM GROUP MANAGEMENT REPORT

MACROECONOMIC CONDITIONS1

Against the backdrop of geopolitical tensions, global economic growth continued to weaken in the first half of the current financial year. Likewise, growth in all reported regions was lower compared to the same period in the previous year. Based on current forecasts, the Russian economy should have continued to develop negatively. Since a major energy crisis did not occur, also thanks to the warm winter, the economic development in the first half of the year was better overall than expected at the end of the last calendar year, according to current forecasts.

Inflation remains high, but experts believe it has peaked or passed its peak in many of our countries. In particular, the costs for energy have recently been declining again in many cases compared to the previous year. Economic policy measures, such as the energy price brake in Germany, have often contributed to this. Rising food prices have meanwhile replaced energy prices as the driver of inflation in many countries. As a result of inflation, private consumption as an economic growth driver has often been weaker.

Starting from historically low levels, consumer confidence in the countries of the European Union has recovered significantly over the last six months. However, consumer confidence is still well below the long- term average. Nevertheless, the development of this indicator reflects increasing consumer confidence in the European Union and the Eurozone.

Based on available data, the start of the hospitality industry in the current business year was also positive. Due to a significant delay in reporting on the development of the sector by the statistical offices, data is only available - if at all - for the first tertial or the first quarter of the current business year. For the available period, unchanged high sales growth was reported for the hospitality industry.

The following table shows the development of the gross domestic product by METRO regions.

DEVELOPMENT OF GROSS DOMESTIC PRODUCT BY REGION1, 2

Changes compared to the previous year in %

		H1 2021/22		H2 2021/22
World	4.7	3.0
Germany	2.3	1.5
West	6.2	3.9
Russia	4.4	-3.9
East	6.6	3.9

H1 2022/23

1.8

0.5

1.7

-3.5

1.2

1Real GDP growth on USD basis and, except for "World", corrected for purchasing power. The values are calculated on the basis of the financial year. Source: Oxford Economics. 2Regions only take into account continuing portfolio countries.

1 The data used was collected as of 4 April 2023. The statistics are based on assumptions, especially for the 2nd quarter, and are therefore provisional. Statistics on Russia and Ukraine are only reliable to a limited extent due to the war.