METRO FACTBOOK 2019/20

BERENBERG

WEST COAST CONSUMER CONFERENCE

19 November 2020

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. 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. Meanwhile the sale has been closed and will be reflected in Q3 reporting. 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 continuing operations unless stated otherwise. Furthermore, the results are reported based on the retrospective adjustments due to IFRS 16.

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 19.11.2020 © METRO AG.

01 COMPANY STRUCTURE

3 19.11.2020 © METRO AG.

COMPANY STRUCTURE

Discontinued operations in FY2018/19

Hypermarket

METRO China

Closed on 25.06.2020

closed on 23.04.2020

4 19.11.2020 © METRO AG.

MANAGEMENT BOARD

Olaf Koch

Christian Baier

Andrea Euenheim

Rafael Gasset

Eric Poirier

Chairman of the

Chief Financial Officer

Chief Human Resources

Chief Operating Officer

Chief Operating Officer

Management Board

Officer and Labour

(Trader Cluster)

(HoReCa Cluster)

(Chief Executive

Director

Officer)

Chairman of the

Member of the

Member of the

Management Board of

Management Board of

Management Board and

METRO AG since 2 March

METRO AG since

Labour Director of METRO

2017

11 November 2016

AG since 1 November

2019

Member of the Management Board of METRO AG since 1 April 2020

Member of the Management Board of METRO AG since 1 April 2020

Term ending:

31 December 2020 >10 years in METRO Owns 370,000 Shares

Term ending:

Term ending:

Term ending:

30 September 2025

Term ending:

31 March 2023

31 March 2023

>8 years in METRO

31 October 2022

>10 years in METRO

20 years in METRO

Owns 2,850 shares

5 19.11.2020 © METRO AG.

02 Q3 2019/20

SHOWING RESILIENCE IN

THE LIGHT OF COVID-19

6 19.11.2020 © METRO AG.

Q3 2019/20 IN A NUTSHELL - OPERATIONS

"PROTECT"

"PRESERVE"

"GROW"

  • Ensuring safety of our employees and customers
  • Making sure that stores provide safe shopping experience without compromising on high service
  • Our teams responded with extraordinary resilience, determination and commitment
  • Our country operations were quick and proactive when it came to handling this backdrop. Flexible C&C operations and strong customer relationship is very valuable in times of crisis
  • Proximity to our customers was key. Various support measures were launched in order to help them in these unprecedent times
  • The entrepreneurial culture and accountability accelerated performance which started before COVID-19
  • Diversified customer base and flexible operations cushion the COVID-19related decline in HoReCa and FSD

7 19.11.2020 © METRO AG.

Q3 2019/20 IN A NUTSHELL - FINANCIALS

Portfolio diversification and operations flexibility

EBITDA to EPS

Acceleration

Advancing

wholesale agendaStrong

reported EPS and net debt reduction

  • Sales driven by stable accelerated growth with Trader and SCO while HoReCa is affected by lockdowns in Q3
  • Flexible C&C + FSD + Services model provides channel optionality, welcomed by HoReCa
  • Diverse performance across geographies depending on lockdown sequence
  • EBITDA impacted in line with sales development; countered by intense and successful efforts to save costs across countries
  • Continuous improvement in the interest and investment result
  • Sale of China and Real closed in Q3, leading to €0.5 bn positive transaction result and €1.9 bn net cash proceeds1
  • Q3 reported EPS growth to €1.41; basis for dividend continuity
  • €1.8 bn net debt reduction driven by resilient business model and successful execution of transformation transactions

1Sale of the majority stake in METRO China was closed on 23rd April and Sale of real was closed on 25th June except for 6 remaining properties to be closed in late summer

8 19.11.2020 © METRO AG.

CRISIS-PROOF BUSINESS MODEL

April: ~75% of sales level

May: ~80% of sales:

June: ~95%1

Broad spread of COVID-19 &

Initial easing of governmental

Broader loosening of governmental

governmental restrictions

restrictions

restrictions

  • Portfolio diversification partially compensates HoReCa decline as operations were strongly limited
  • Broad counter measures initiated
  • Resilient Trader with limited volatility
  • SCO with mid/low double-digit inflow
  • HoReCa restarting; strong positioning due to flexibility of C&C channel
  • Trader stayed on low single-digit growth aided by online and trader franchise
  • SCO's basket and frequency were still high
  • HoReCa recovery was supported by opening of borders
  • Trader continued to improve across majority of regions
  • SCO was at high single-digit percentage growth; aim to retain new customers

HoReCa

Trader2

SCO 1 Break-even achieved first week of July 2 Full Trader sales

9 19.11.2020

© METRO AG.

REGIONAL SALES DEVELOPMENT

Simplified view

Customers split

Lockdown

Intensity of

LfL sales

(rounded, in %, FY 18/19)

Start

Duration

Q3 19/20

July LfL1

measures

HoReCa Trader SCO

Russia

16 %

30 %

54 %

Late March

6 - 8 weeks

+ 6.0%

~16%

lockdown

Eastern

Mid March

6 - 8 weeks

- 7.4%

~3%

37 %

31 %

32 %

Europe

lockdown

Germany

Mid March

6 - 8 weeks

- 9.5%

~3%

46 %

13 %

41 %

lockdown

Western

~10 weeks

- 32.8%

~-2%

65 %

16 %

20 %

Mid March

Europe

lockdown

Asia

January, second

Ongoing

- 19.2%

~-11%

40 %

31 %

28 %

wave in March

1 July: Preliminary unaudited figures, including 1.7% calendar support

10 19.11.2020 © METRO AG.

Medium/low

Medium

Medium/High

High

GRADUAL WEEK BY WEEK IMPROVEMENT

April

May

June

July

~75% of sales

~80% of sales

~95% of sales

On PY level

% LFL Sales - all customer groups

15

Easter:

Avg. ~€-150 m per week

0

-15

-30

-45

Weekly %-Change vs. PY

Weekly %-Change vs. PY

CW 14

CW 15

CW16

CW17

CW18

CW19

CW20

CW21

CW22

CW23

CW24

CW25

CW26

CW27

CW28

CW29

CW30

CW31

LFL Sales - HoReCa

25

0

-25

-50

-75

April

May

June

July

11 19.11.2020 © METRO AG.

VIEW ON SECTOR CONFIRMED WITH Q3 PROOF POINTS

COVID-19 had a significant short-term impact on HoReCa

However: High quality Food remained and will remain a high priority among consumer preferences

General desire to eat out and enjoy excellent food is strong

ü

Vast majority of restrictions have been lifted

HoReCa sales are largely on pre COVID-19 levels

Flexible structures will be essential to serve "New HoReCa demand pattern"

C&C + FSD/Franchise + WS360 ideal combination

Tactical complementary business important to cushion volatility

OUR ORIGIN IS

WHOLESALE

IS OUR FUTURE

  • July LfL
    sel.

+1.5%1

1 Preliminary unaudited figures; calendar support of 1.7%

12 19.11.2020 © METRO AG.

03 FY TRADING STATEMENT 2019/20

13 19.11.2020 © METRO AG.

SALES AND EBITDA GUIDANCE FOR 2019/20 ACHIEVED

METRO Sales

METRO

12M 2018/19

12M 2019/20

Q4 2018/19

Q4 2019/20

Sales (€ billion)

27.1

25.6

6.9

6.5

Change (€)

1.1%

-5.4%

3.3%

-5.1%

Change (local

2.2%

-4.0%

2.2%

-0.6%

currency)

Like-for-like (local

2.1%

-3.9%

2.1%

-0.5%

currency)

FY 2019/20

  • Sales growth at the upper end of the guidance range (-3.5% to -5%)
  • This reflects the rapid and significant recovery of METRO's HoReCa business, also supported by continued market share gains, incl. in Germany, France and Italy; Trader and SCO customer groups also achieved clearly positive sales growth in Q4
  • Like-for-likesales development was positive in Russia (3.8%) and Eastern Europe (excl. Russia) (2.2%); Germany roughly matching the prior year's level (-0.8%)
  • Western Europe (excl. Germany) (-10.6%) and Asia (-7.0%) reported significantly negative like-for-like sales growth

Q4 2019/20

  • Stabilisation like-for-like sales development at -0.5%
  • Positive contributions from Germany (2.7%), Russia (8.2%) and Eastern Europe (excl. Russia) (2.0%)
  • Western Europe (excl. Germany) (-3.6%) and Asia (-12.2%) showed significant improvement compared to Q3 as well

14 19.11.2020 © METRO AG.

SALES METRO WHOLESALE

(1/5)

METRO Wholesale Germany

METRO

12M 2018/19

12M 2019/20

Q4 2018/19

Q4 2019/20

Sales (€ billion)

4.7

4.7

1.2

1.2

Change (€)

-0.5%

-0.8%

0.0%

2.7%

Change (local

-0.6%

-0.8%

0.0%

2.7%

currency)

Like-for-like (local

0.3%

-0.8%

0.6%

2.7%

currency)

15 19.11.2020 © METRO AG.

SALES METRO WHOLESALE

(2/5)

METRO Wholesale Western Europe (excl. Germany)

METRO

12M 2018/19

12M 2019/20

Q4 2018/19

Q4 2019/20

Sales (€ billion)

10.8

9.6

2.7

2.6

Change (€)

1.3%

-10.7%

2.0%

-3.5%

Change (local

1.3%

-10.7%

2.0%

-3.5%

currency)

Like-for-like (local

1.3%

-10.6%

2.2%

-3.6%

currency)

16 19.11.2020 © METRO AG.

SALES METRO WHOLESALE

(3/5)

METRO Wholesale Russia

METRO

12M 2018/19

12M 2019/20

Q4 2018/19

Q4 2019/20

Sales (€ billion)

2.7

2.6

0.6

0.5

Change (€)

-5.4%

-0.7%

2.2%

-12.7%

Change (local

-3.3%

4.2%

-5.2%

8.4%

currency)

Like-for-like (local

-4.3%

3.8%

-6.3%

8.2%

currency)

17 19.11.2020 © METRO AG.

SALES METRO WHOLESALE

(4/5)

METRO Wholesale Eastern Europe (excl. Russia)

METRO

12M 2018/19

12M 2019/20

Q4 2018/19

Q4 2019/20

Sales (€ billion)

7.2

7.1

1.9

1.8

Change (€)

3.4%

-0.9%

7.0%

-5.5%

Change (local

6.4%

2.2%

5.4%

1.9%

currency)

Like-for-like (local

6.3%

2.2%

5.2%

2.0%

currency)

18 19.11.2020 © METRO AG.

SALES METRO WHOLESALE

(5/5)

METRO Wholesale Asia

METRO

12M 2018/19

12M 2019/20

Q4 2018/19

Q4 2019/20

Sales (€ billion)

1.7

1.5

0.4

0.3

Change (€)

5.2%

-9.3%

7.0%

-19.8%

Change (local

7.3%

-6.7%

6.4%

-11.9%

currency)

Like-for-like (local

5.3%

-7.0%

4.9%

-12.2%

currency)

19 19.11.2020 © METRO AG.

04 STRATEGIC UPDATE

20 19.11.2020 © METRO AG.

REINFORCING OUR STRATEGIC APPROACH

Q3 2018/19

21 19.11.2020 © METRO AG.

Convenience & out-of- home consumption

Supported overall quick rebound

Connected consumer

Fast ramp-up of B2B2C and e-commerce via M:SHOP for Trader and SCO

Hospitality digitalization

COVID-19 disruption leads to stronger demand for new solutions. The crisis has turned into a catalyst for modernization.

ü

ü

ü

HORECA: TRUE PARTNERSHIP IS KEY

HoReCa:

    • SMEs: ~1.7m Volume: ~€600 bn1 Highly fragmented supply base
  • Short term impact through lockdowns not seen as long-lastingchange in trends
  • OOHC still expected to grow due to preferences and habits
  • Business models however need to be adjusted

Operational excellence to support customers in difficult times (focus on product availability, stores remained open etc).

Fair pricing to ensure predictability for our customers

Support and advise to adjust the business and to apply for government aid packages.

Controlled support on payment terms

Support of public campaigns to address the needs of the sector. Contribution to #restartGastro concepts (whitepapers)

As a result we observed above market performance due to beneficial setup and clear customer focus leading to an up to 40%-pts outperformance in some countries

1EURb, sell-out value 2018, MCC countries .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 Source: Euromonitor

22 19.11.2020 © METRO AG.

HORECA: EXTENSION OF SERVICES

During the last months we intensified our efforts to support our customers in adjusting their business the new circumstances. We launched and activated several additional services:

  • Online meal ordering

§ Collaboration with car rental companies

  • Voucher sales

§ Digital Check-In Tool

  • Digital Menu Tool

At the same time our digital base continued to grow:

~200.000 Dish accounts, >30.000 reservation sites, etc.

Leading to positive business impact. Digital tools have helped customer acquisition. Furthermore we have clear evidence that digital accounts have 2x purchasing frequency than non-digital accounts

1EURb, sell-out value 2018, MCC countries .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 Source: Euromonitor

23 19.11.2020 © METRO AG.

HORECA: ABOVE MARKET PERFORMANCE

FOCUS DRIVES GROWTH

FOR HORECA

Compared to CW3-8 average sales level

HoReCa sales came back quickly to above market

%

CY Sales

PY Sales

150

100

50

0

CW

CW

CW

CW

CW

CW

CW

8

12

16

20

24

28

31

Taking advantage of

channel flexibility

%

Total

FSD

150

C&C

100

50

0

CW

CW

CW

CW

CW

CW

CW

8

12

16

20

24

28

31

Portfolio skewed to

customers that recover first

  • Sales Top 3 CY

150

Sales Top 3 PY

100

50

28 %

Top 3

other

72 %

0

CW

CW

CW

CW

CW

CW

CW

8

12

16

20

24

28

31

Up to 40%-pts outperformance of

Up to ~15%-pts outperformance

High exposure to resilient customers2

market in e.g. FR, DE and IT1

of store over FSD

in resilient countries3 with low

dependency on inbound tourism4

1 FR: Market assessment based independent market size by Food Service Vision DE: Market assessment based on DWH, npdgroup CREST Panel (total out-of-home consumption; n≈ 12.000

24 19.11.2020

© METRO AG. participants) IT: Market assessment based on estimated data (calculated by combining different sources NPD / FEDERALBERGHI / ISTAT) 2 >70% of sales with Restaurants, cafés, fast food;

compared to lagging CTGs (hotels, caterers, canteens). 3 Germany, France and Italy >50% of sales, based on sales FY2018/19 incl FSD companies

4 Based on internal analysts and

Euromonitor 2019 data. For DE, FR and IT tourism spending is coming mostly from local demand, therefore those countries are less dependent on foreign travel.

GERMANY: GOING THE EXTRA MILE!

FOCUS DRIVES GROWTH ABOVE MARKET

ü

July LfL sel.

IN GERMANY

~3%1

A robust business model appreciated

by our customers

100% of stores remained opened

100% Sales Force employment and 100% of hours

97% Food stock availability (stable to pre COVID-19)

> NPS to PY in June and July

+28% reactivated SCO customers during COVID-19

USP through various extensions

  • Webinars
  • One-timeCrisis Rebates
  • Payment terms
  • Reservation Tool
  • Check-InTool
  • …

1 Preliminary unaudited figures; calendar support of 1.7% on total group. METRO Germany LFL sales include results from Rungis Express, a pure Horeca FSD player, which is still under pressure

25 19.11.2020 © METRO AG.

TRADER: TRUE PARTNERSHIP IS KEY

Trader

  • SMEs: ~1.3m Volume: ~€1,000 bn1 fragmented independent retail market

Operational excellence to support customers in difficult times (focus on product availability, stores always open)

Ramping up diverse online solutions and partnering with e-commerceplayers to target end consumer demands - B2B2C

Pre-existing some countries; quickly set up in others:

5 countries

4 countries

7 countries

Offer B2B2C delivery

Run pilots

Evaluate entering

Trader franchise continues to grow and proves even more resilient than normal trader

1EURb, sell-out value 2018, MCC countries .WE incl. DE, EE incl. RU, Asia without CN; MCC countries excl. countries with pure play FSD operations (e.g. CFF) Trader market including traditional grocery retailers, forecourt and CVS Source: Euromonitor

26 19.11.2020 © METRO AG.

TRADER: FRANCHISE SUCCESS ACCELERATES

FOCUS DRIVES GROWTH

IN TRADER

Supporting independent

entrepreneurs

Increased engagement and support for our partners during crisis

Home delivery solution from trader to end consumer

  • Running in Romania and Czech Republic for 80 partner stores

Trader Sales Force

  • Further development of partner management approach is planned

Developing digital

solutions

1/3 of franchisees search for click & collect/Delivery options:

M|SHOP Trader

  • Front end solution for delivery, running in Russia and Romania
  • +15% in basket size
  • +100.000 orders in Q3 19/20

B2B and B2C solutions

  • Launching B2B & B2C solutions in next financial year

Growing our business

through franchise

Achieving recurring revenues through partnership

+24%

2.5x

Q3 total sales

higher basket

to PY

than average Trader

  • 10 countries with Trader Franchise model
  • +200 new partners in Q3
  • ~8,000 partners in total

27 19.11.2020 © METRO AG.

RUSSIA: BACK TO OUTPERFORMANCE

FOCUS DRIVES GROWTH

ü

July LfL sel.

IN RUSSIA

~16%1

Operational excellence

Store adjustment

Change to a warehouse feel: more pallet placement for higher availability, wider isles for easy navigation, lower racks in NF for better visibility

People management

High and improving team engagement, especially at store level, despite recent headcount optimization and

COVID

Customer management

More efficient acquisition: +25% in new SCO vs PY, higher sales per visit of new vs lost customers

1 Preliminary unaudited figures; calendar support of 1.7% on total group

Growing our business

Partnership with Sbermarket [B2B2C]

Leveraging logistics infrastructure, outsourcing non-core tasks to partner

50+ cities | 8% of sales Share May '20

Fasol development

Continued expansion despite COVID restrictions +135 new in Q3

Successful territory approach and contact model

"HoReCa Renaissance" development and execution start, incl. Metro-Partner

28 19.11.2020 © METRO AG.

05 WRAP-UP & OUTLOOK

29 19.11.2020 © METRO AG.

OUR MISSION: YOUR SUCCESS IS OUR BUSINESS

DEFINED MEASURES RESULTED IN RESILIENCE AND QUICK RECOVERY

HoReCa under pressure in Q31 but with rapid recovery due to incessant customer service and focus on product availability. Agility of hybrid model (stores + FSD + services) proved to be advantageous

Trader with accelerated growth above pre-COVID levels (+10.3%2 Q3 19/20) driven by Russia turnaround, acceleration of e- commerce and trader franchise

SCO grew due to strong customer reactivation (+16% Q3 19/20)3. Main drivers were food quality, availability and superior safety

Grow: your success is our

business

Overall sales at 75% of PY in April, recovery to 80% in May and recovery to 95% in June

Sales in July +1.5%4

  • HoReCa declined by -47% in Q3 2019/20. 2 Trader countries: Bulgaria, Czech Republic, India, Pakistan, Poland, Romania, Russia, Serbia, Slovakia. 3 LfL SCO customer sales 4 Preliminary unaudited figures; calendar support of 1.7%

30 19.11.2020 © METRO AG.

METRO - A FULLY FOCUSED WHOLESALER

More profitable, cash-generativeand less levered

METRO FY2018/19 Guidance view, excluding Real

+0.6%-pts

~+€250 m

EBITDA-margin1

FCF p.a.2

€1.9 bn

Balance sheet strength

in net cash proceeds3

Firepower to drive consolidation

Transformation into a pure wholesaler

Participate in the upside potential

completed

20%

Put option with full flexibility

stake in METRO China

Outperformance vs. market during COVID-19

  1. EBITDA-marginpost IFRS 16 and excl. gains from real estate transactions 2 FCF defined as EBITDA reported - capex excluding finance lease extensions and M&A +/- change in NWC
  1. Sale of the majority stake in METRO China was closed on 23rd April and Sale of real was closed on 25th June except for 6 remaining properties to be closed in late summer

31 19.11.2020 © METRO AG.

RESILIENCE + ABILITY TO ACT

Strong disruption throughout the

Portfolio transformation towards a pure

industry created an opportunity to act,

wholesaler is complete and results in

and we did. Market share gains in

substantially improved financial profile

various countries. Sales back to

previous year's level

1. Includes transaction related cash flow from investing activities of discontinued operations of €1.3 bn. Comprises of €1.9 bn total purchase price less cash and cash equivalents -€0.6 bn

€1.41

Q3 EPS reported

~+1.8 bn

improvement in Net

Debt 1

Strong financial profile

basis for M&A and dividend

continuity

32 19.11.2020 © METRO AG.

WE PRIORITIZE REINVESTING INTO BUSINESS AND MAXIMIZING RETURNS TO SHAREHOLDERS

Capital allocation framework

1 Investment in business

Reshaping the portfolio, accelerating organic growth and complementary strategic M&A

Goal: accelerate sales growth, drive sustainable EBITDA growth

Q3 Update

ü

Consolidation will be accelerated by pandemic Several projects across the portfolio in late stage

2 Returns to shareholders

Ongoing dividends (45-55% of EPS payout ratio)

Goal: sound shareholder return in balance with operational needs

3 Deleverage

Ensure investment grade rating

Goal: funds from operations (FFO) / Adj. net debt ≥ 21%1

ü

Strong Q3 EPS and cash flow

Foundation for dividend continuity in 2019/20

  • Net Debt/EBITDA at ~3.1x2
    S&P May '20: Investment grade, negative outlook

1 S&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 2 Net debt Q3 is €4.4 bn. EBITDA excl RE FY 2018/19 is €1.4 bn

33 19.11.2020 © METRO AG.

OUTLOOK FOR 2019/20

Guidance1

In addition:

9M 2019/20

FY 2019/20

Sales

growth in local-5%decline 3.5-5% currency

LfL growth

-5%

decline 3.5-5%

Adj.EBITDA2

€834 m

decrease by €200

-€192 m to PY

to €250 m

Regional Development for 2019/20

  • Russia and Eastern Europe: significantly better than group average
  • Western Europe and Asia: weaker than group average
  • Others: continuation of positive 9M development, among others supported by the efficiency program and license fee from the cooperation with Wumei3

P&L

  • Real estate gains: c. €10 m (€339 m in 18/19)
  • D&A: c. €-840 m (€-774 m in 18/19)
  • Net financial result: c. €-265 m4 (€-230 m in 18/19)
  • Tax expense: c. €-130 m (€-301 m in 18/19)
  • EPS: additional ~€0.15 from remaining property closings from Real transaction
  • Reported EPS: Strong basis for dividend continuity in line with payout ratio (45-55% of EPS) in unprecedented year

1 At constant FX and before transformation costs, portfolio measures and post IFRS16. Outlook based on the assumption of stable exchange rates and no further adjustments to the portfolio and only covers METRO's continuing operations. Furthermore, the outlook is based on the assumption that negative impacts of the COVID-19 pandemic will not surge again in countries relevant for METRO and that the stable recovery of the HoReCa sector continues 2 Adj. EBITDA - EBITDA pre transformation costs and real estate gains

gains 3 Part of the transaction includes the license fee paid by Wumei for use of brand over the next three years; reported in 'Others'' 4 At current exchange rate

34 19.11.2020 © METRO AG.

APPENDIX

Q3 2019/20

FINANCIALS

35 19.11.2020 © METRO AG.

SALES TO EBITDA - GROUP

€m / %

Q3 2018/19

Q3 2019/20

Like-for-like growth

3.1%

-17.5%

thereof Food

3.9%

-18.3%

Reported growth

2.4%

-19.8%

Growth in local currency

3.2%

-17.4%

Delivery Sales Share

18%

12%

Adj. EBITDA1

373

175

thereof FX

-12

Adj. EBITDA margin

5.4%

3.1%

Transformation costs

0

-1

Real estate gains

32

2

2

404

176

Reported EBITDA

Sales growth

  • Sales development driven by mix of
    • Stable accelerated growth with Trader & SCO
    • HoReCa sales affected by lockdowns but steep recovery
  • HoReCa customers with clear preference for store; putting temporary pressure on FSD
  • Reported sales growth affected by negative currency development in Eastern Europe, especially Turkey

EBITDA and EBITDA margin

  • EBITDA impacted in line with sales development; countered by intense and successful efforts to save costs across countries
  • Structures made flexible to react quickly to pandemic development
  • "Others": costs savings from efficiency measures and license fee from Wumei3
  • Continuous trend improvement throughout Q3 as lockdowns were released and sales trend improved
  • EBITDA to PY in constant currency:
    April -€99 m, May ~ -€60 m and June ~ -€26 m

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 three years; reported in 'Others'

36 19.11.2020 © METRO AG.

EBITDA TO EPS

€m / %

Q3 2018/19

Q3 2019/20

Reported EBITDA

404

176

D&A

-192

-197

EBIT

212

-21

Interest and investment

-61

-52

result

Other financial result

2

14

Net financial result

-59

-38

EBT

153

-59

Tax expense

-61

-78

Net income

92

-137

EPS in €

0.25

-0.38

EBIT

  • Decrease due to governmental restrictions affecting top line and lower real estate gains

Net financial result

  • Improvement in the interest and investment result due to lower financing costs
  • Other financial result positively affected by appreciation of currencies in CEE countries with EUR based lease contracts

Tax

  • Tax expense is calculated based on expected tax expense for FY 19/20
  • Q3 is impacted by a tax catch-up effect to match the expected tax expense for the full year
  • Implied tax rate not meaningful due to low negative EBT and resulting high & volatile tax rate

EPS

  • EPS decrease driven by a combination of operating deleverage, low real estate gains and FX volatility

37 19.11.2020 © METRO AG.

Q3 REPORTED EPS GROWTH

€m / %

Q3 2018/19

Q3 2019/20

Net income cont. Ops.

90

-140

Transaction result China1

n.a

943

Transaction result Real1

n.a

-401

non-cash provisions and

-361

impairments

Transaction results

542

Net income disc. ops.

25

652

Net income reported2

115

512

EPS reported

0.32

1.41

Transaction result China

  • €0.9 bn transaction result, reflective of a very value-creating transaction
  • Additional upside potential from 20% stake

Transaction result Real

  • Cash-positiveexit of loss-making business; transaction result impacted by
    • non-cashimpairment
    • contract liability to address excess capacity in service companies3
  • ~€0.15 EPS to come in Q4 from remaining property closings

EPS reported

  • Q3 reported EPS is at €1.41 with significant growth to 18/19 driven by successful execution of transformational transactions and resilient business model

1 Gains/losses from the remeasurement or disposal of discontinued operations after taxes 2 Attributable to the shareholders of METRO AG 3 As per ad hoc related to sale of Real on conclusion of purchase agreement with SCP Group

38 19.11.2020 © METRO AG.

FCF IN Q3 2019/20

€m / %

Q3 2018/19

Q3 2019/20

Adj EBITDA1

373

175

Change in NWC

130

6

Cash Investments2

-92

-75

FCF

410

106

Net debt (30 June)

6,164

4,408

Change in NWC

  • Smaller positive contribution is driven by negative effects from COVID-19 especially in Eastern Europe

Cash Investments

  • Savings due to reduced investment in light of COVID-19

Net debt

€bn / %

Cash Flow from disinvestments (disc. ops) as per cash flow

plus Cash in disc. ops.

Net proceeds (=reduction in net debt)

Q3 2019/20

1.3

0.6

1.9

  • €1.8 bn improvement in net debt is
    • particularly due to the disposal of the majority stake in METRO China (€1.6 bn) and the hypermarket business (€0.3 bn)
    • while the operating business showed resilience
  • Including the M&A transactions, Net Debt/EBITDA FY2018/19 is ~3.1x3

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. 3 Net debt Q3 is €4.4 bn. EBITDA excl RE FY 2018/19 is €1.4 bn

39 19.11.2020 © METRO AG.

REGIONAL PERFORMANCE

HoReCa

Trader

SCO

1

1

Germany

Western Europe

€m / %

Q3 2019/20

€m / %

Q3 2019/20

Sales

1,092

3,1%

3,9%

Sales

1,869

Like-for-like growth

-9.5%

Like-for-like growth

-32.8%

Q3 2018/19

Q3 2019/20

Reported growth

-9.4%

Reported growth

-32.9%

Adj. EBITDA2

31

Adj. EBITDA2

18

EBITDA margin

2.8%

-17,5%-18,3%

EBITDA margin

1.0%

Constant FX to PY

-9

Like-for-like growth

thereof Food

Constant FX to PY

-168

1

1

1

Russia

Eastern Europe

Asia

€m / %

Q3 2019/20

€m / %

Q3 2019/20

€m / %

Q3 2019/20

Sales

646

Sales

1,620

Sales

331

Like-for-like growth

6.0%

Like-for-like growth

-7.4%

Like-for-like growth

-19.2%

Reported growth

-3.7%

Reported growth

-12.2%

Reported growth

-22.5%

Adj. EBITDA2

53

Adj. EBITDA2

75

Adj. EBITDA2

-6

EBITDA margin

8.2%

EBITDA margin

4.6%

EBITDA margin

-1.8%

Constant FX to PY

-2

Constant FX to PY

-17

Constant FX to PY

-14

1Like for like sales shares FY 2018/19 2Adj. EBITDA - EBITDA pre transformation costs and real estate gains

Note: Transformation costs affect segment "others"

40 19.11.2020

© METRO AG.

SALES TO EBITDA - SEGMENTS

(1/3)

METRO Germany

METRO Western Europe

€m / %

Q3 2018/19

Q3 2019/20

€m / %

Q3 2018/19

Q3 2019/20

Sales

1,205

1,092

Sales

2,784

1,869

Like-for-like growth

3.6%

-9.5%

Like-for-like growth

2.2%

-32.8%

Reported growth

3.0%

-9.4%

Reported growth

2.2%

-32.9%

Adj. EBITDA

40

31

Adj. EBITDA

186

18

EBITDA margin

3.3%

2.8%

EBITDA margin

6.7%

1.0%

Real estate gains

0

0

Real estate gains

29

0

Reported EBITDA

40

31

Reported EBITDA

215

18

41 19.11.2020 © METRO AG.

SALES TO EBITDA - SEGMENTS

(2/3)

METRO Russia

€m / %

Q3 2018/19

Q3 2019/20

Sales

671

646

Like-for-like growth

-4.8%

6.0%

Reported growth

-0.8%

-3.7%

Adj. EBITDA

60

53

thereof FX

-6

EBITDA margin

9.0%

8.2%

Real estate gains

0

0

Reported EBITDA

60

53

METRO Eastern Europe

€m / %

Q3 2018/19

Q3 2019/20

Sales

1,846

1,620

Like-for-like growth

7.1%

-7.4%

Reported growth

3.4%

-12.2%

Adj. EBITDA

96

75

thereof FX

-4

EBITDA margin

5.2%

4.6%

Real estate gains

0

2

Reported EBITDA

96

77

42 19.11.2020 © METRO AG.

SALES TO EBITDA - SEGMENTS

(3/3)

METRO Asia

Others

€m / %

Q3 2018/19

Q3 2019/20

€m

Q3 2018/19

Q3 2019/20

Sales

427

331

Sales

8

11

Like-for-like growth

3.8%

-19.2%

Reported growth

4.5%

-22.5%

Adj. EBITDA

9

-6

Adj. EBITDA

-18

6

thereof FX

-1

thereof FX

-2

EBITDA margin

2.1%

-1.8%

Transformation costs

-1

Real estate gains

0

0

Real estate gains

2

0

Reported EBITDA

9

-6

Reported EBITDA

-16

5

43 19.11.2020 © METRO AG.

CASH FLOW STATEMENT

€ million

Q3 18/19

Q3 19/20

EBIT

212

-21

Depreciation/amortisation/impairment losses/reversal of impairment losses of assets excl.

192

197

financial investments

Change in provisions for post- employment benefits plans and other provisions

-6

11

Change in net working capital

130

6

Income taxes paid

-46

-8

Reclassification of gains (-) / losses (+) from the disposal of fixed assets

-37

-2

Other

31

124

Cash flow from operating activities of continuing operations

476

307

Cash flow from operating activities of discontinued operations

- 78

- 20

Cash flow from operating activities

399

326

Acquisition of subsidiaries

0

0

Investments in property, plant and equipment and in investment property (excl.usufructuary

-48

-38

rights from leases)

Other investments

-48

-49

Investments in monetary assets

0

-8

Disposals of subsidiaries

0

0

Divestments

75

2

Disposal of financial investments

0

0

Cash flow from investing activities of continuing operations

-21

-93

Cash flow from investing activities of discontinued operations

- 66

1,240

Cash flow from investing activities

-87

1,147

Dividends paid

0

0

Redemption of liabilities from put options of non-controlling interests

- 12

0

Proceeds from new borrowings

1,919

591

Redemption of borrowings

-2,068

- 1,010

Interest paid

- 68

- 64

Interest received

8

7

Other financial activities

-7

18

Cash flow from financing activities of continuing operations

-228

-458

Cash flow from financing activities of discontinued operations

- 99

-106

Cash flow from financing activities

-327

-602

Total cash flows

-16

871

Transaction effects included in investing cash flow from investments of disc. operations

Desinvestment-cash flow according to cash flow statement (from discontinued operations) in € billion

METRO China

1.1

Hypermarket business

0.2

Cash flow from transactions 1

1.3

In addition cash and cash equivalents of the disposal

group

METRO China

0.5

Hypermarket business

0.1

Cash and cash equivalents disposal group total

0.6

Net cash inflow in continuing operations

= transaction related reduction of net debt

METRO China

1.6

Hypermarket business

0.3

Net cash inflow

1.9

1The total cash flow from investing activities of discontinued operations amounts to €1.2 billion and also includes the current investment cash flow of the disposal group until the disposal.

44 19.11.2020 © METRO AG.

CONTACT

Investor Relations

METRO AG

Metro-Straße 1

40235 Düsseldorf

Germany

T +49 211 6886-1280

F +49 211 6886-73-3759

  1. investorrelations@metro.de
    www.metroag.de

45 19.11.2020 © METRO AG.

46 19.11.2020 © METRO AG.

Attachments

  • Original document
  • Permalink

Disclaimer

Metro AG published this content on 30 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2020 17:22:04 UTC