FY 2014/15 RESULTS PRESENTATION. 15 December 2015

Transcription

1 FY 2014/15 RESULTS PRESENTATION 15 December 2015

2 AGENDA 01 Strong Progress Made in 2014/15 02 Financials FY 2014/15 03 Strategic Update 04 Outlook 2015/16 15 December 2015 METRO AG

3 TRANSFORMATION OF METRO GROUP 15 December 2015 METRO AG

4 TRANSFORMATION OF METRO GROUP ACQUISITIONS START-UP INV. / ACCELERATORS BUSINESS INNOVATION STRATEGY MODERNISATION OF OUR BUSINESS MODEL FOCUS PORTFOLIO OPTIMISATION DEBT REDUCTION SUSTAINABILITY CORPORATE CULTURE, MANAGEMENT CULTURE, EMPLOYEE ENGAGEMENT CUSTOMER-CENTRIC STRATEGIES December 2015 METRO AG

5 TRANSFORMATION OF METRO GROUP ACQUISITIONS START-UP INV. / ACCELERATORS BUSINESS INNOVATION STRATEGY FOCUS PORTFOLIO OPTIMISATION DEBT REDUCTION SUSTAINABILITY CORPORATE CULTURE, MANAGEMENT CULTURE, EMPLOYEE ENGAGEMENT CUSTOMER-CENTRIC STRATEGIES December 2015 METRO AG

6 ONCE AGAIN ALL TARGETS ACHIEVED Persistent major challenges Sluggish economic environment Geopolitical crisis Volatile emerging market currencies Nevertheless major achievements Continued positive LfL sales growth at METRO Cash & Carry and Media-Saturn Sales line transformation moving forward Implementation of new business model started Ongoing active portfolio management Higher sales, better earnings, stronger balance sheet LfL Sales EBIT* EPS Net Debt *adjusted for FX +1.5% 1,511 million ,527 million 15 December 2015 METRO AG

7 INNOVATION ACCELERATED - DIGITALISATION STARTED Digital Horeca METRO Cash & Carry and Media-Saturn 360 degree Media-Saturn Further expansion in delivery and online Additional investments in new businesses Delivery Sales 2013/ billion 2014/ billion Online Sales 2013/ billion 2014/ billion December 2015 METRO AG

8 SUSTAINABILITY: INDUSTRY GROUP LEADER Achievements METRO GROUP Pursuit of sustainable business for our customers, employees, shareholders and the environment Award from EHI Retail Institute for traceability solution METRO GROUP presented for the 1 st time at a SRI Conference Rewards Membership of FTSE4Good Europe and Global Indices reconfirmed Sector leader Consumer Staples and Index Leader MDAX at the CDP with a new record of 99 out of 100 points Again, listing in Dow Jones Sustainability Europe and World Indices: METRO GROUP became the Industry Group Leader in the Food & Staples Retailing category New Target: Reducing GHG emissions per sqm by 50% in 2030 (compared to 2011) 15 December 2015 METRO AG

9 NEW CLIMATE TARGET ADOPTED METRO GROUP climate target 2012 (20% reduction in CO 2 emissions* by 2020 compared to 2011) almost achieved Comprehensive energy-saving programmes in all sales lines Substantial reduction of cooling agent leakage from cooling systems Reduction of paper consumption and business travel Changes in the portfolio of locations New METRO GROUP climate target: 50% reduction in CO 2 emissions* by 2030 compared to 2011 in order to further optimise energy and resource management contribute to the political objective of keeping global warming significantly below 2 degrees contribute to the UN s Sustainable Development Goals by 2030 further improve the group s standing among external stakeholders *per square metre of selling space 15 December 2015 METRO AG

10 AGENDA 01 Strong Progress Made in 2014/15 02 Financials FY 2014/15 03 Strategic Update 04 Outlook 2015/16 15 December 2015 METRO AG

11 FY 2014/15: ONGOING CHALLENGES MANAGED Sluggish economic environment (Global real GDP growth of 2.4%) Geopolitical crisis (Russian economy under pressure) Weak emerging market currencies weighing on results Sales: -1.0 billion EBIT: -117 million Western Europe back on track (real GDP growth in Spain ~3% and Italy ~1%) Import restrictions in Russia well balanced by local sourcing amongst others Further improvement of financial profile Positive strong operational performance despite demanding environment 15 December 2015 METRO AG

12 FY 2014/15: ONCE AGAIN ALL FINANCIAL TARGETS ACHIEVED billlion Reported FY 2013/14 Guidance FY 2014/15 Reported FY 2014/15 LfL sales growth +0.1% >0% +1.5% EBIT before special items 1,531 >1, Capex 1.0 ~1.5 1,4 Net debt 4,7 <3.2 2,5 Number of new store openings 68 ~ Based on constant foreign exchange rates (1, (FX) = 1,414) ü Strong base for future profitable growth 15 December 2015 METRO AG

13 EBIT FY 2014/15: COMPARABLE EBIT IMPROVED BY ~ 100 MILLION +97 in million 454 1,531 -~ ,511 ~1,414 1) ~114 ~154 1) 1, FY 2013/14 (Reported) Special items FY 2013/14 (Before Special Items) Negative FX Impact FY 2013/14 (Comparable Before Special Items) FY 2014/15 (Reported) Special Items 1) Real Estate Gains from Divestments FY 2014/15 (Before Special Items) 15 December 2015 METRO AG

14 FY 2014/15: SALES AND EBIT BY DIVISION Δ Sales Like-for-Like EBIT EBIT EBIT FY 2014/15 FY 2014/15 Change Change reported comparable reported vs FY 2013/14 million METRO Cash & Carry ,7% 0,9% FY 2013/ FY 2013/14 ~987 FY 2014/ comparable +63 Media-Saturn ,6% 3,1% 335 ~ Real ,3% -0.8% Others Consolidation METRO GROUP ,2% 1,5% ~1, Others 9 th consecutive quarter with LfL growth; comparable EBIT noticeable above PY level 5 th consecutive quarter with strong LfL growth driven by all regions; strong operational performance led to clear EBIT improvement LfL performance on previous year level due to the challenging overall environment; EBIT supported by new cooperation with Markant and ongoing tight cost control Impacted by lower rental income as well as additional rental and project costs 15 December 2015 METRO AG

15 FY 2014/15: INCOME STATEMENT (EBIT TO EPS) million FY 2013/14 FY 2014/15 Change EBIT Net financial result EBT Income Taxes Profit or loss for the period from discontinued operations after tax Profit or loss for the period Non-controlling interests EPS in 1,84 1,91 +0,07 Net financial result strongly improved mainly due to better interest result Tax rate of 48.6% in FY 2014/15 in line with expectations EPS before special items improved by 0.07 to 1.91 Proposal to increase dividend to 1.00 per ordinary share 15 December 2015 METRO AG

16 REFINANCING OF HIGH INTEREST BONDS AND LOW INTEREST ENVIRONMENT SUPPORTING INTEREST RESULT Recently matured bonds 600 million, 5.75%, July ,000 million, 7.625%, March 2015 Bond issued in October 2014 ( 500 million) Low coupon of 1.375% with tenor of 7 years Pre-financing of the bond due in March 2015 Bond issued in March 2015 ( 600 million) Low coupon of 1.5% benefiting from attractive market window Debut benchmark transaction with tenor of 10 years Lock in the attractive interest level Interest Result in million 2013/ / /16E -280 Expected further improvement of interest result in 2015/ % METRO with excellent standing on debt capital markets and well-balanced maturity profile 15 December 2015 METRO AG

17 IMPROVEMENT OF NET FINANCIAL RESULT COVERS IMPACT OF CURRENCY EXCHANGE EFFECTS in million Adjusted for unhedged currency effects 2013/ / / / December 2015 METRO AG

18 FY 2014/15: TAX RATE AS PART OF THE TRANSFORMATION PROCESS Despite the impact of the sale of Galeria Kaufhof tax rate with 48.6% already lower than in previous year Further reduction of tax rate to a level of round about 35% targeted 54.0% 48.6% ~35% Cash tax rate at ~33% in FY 2014/15 FY 2013/14 FY 2014/15 Midterm 15 December 2015 METRO AG

19 FY 2014/15: NET DEBT STRONGLY IMPROVED in million 7,734-5bn 3,245 5,391 2,402 4,655 1,509 2, Net debt significantly reduced by more than 5 billion over the last three years Average net debt 2014/15 at ~ 3.4 billion 15 December 2015 METRO AG

20 SPECIAL ITEMS million FY 2013/14 FY 2014/15 Portfolio Optimisation Measures Restructuring and Efficiency- Enhancing Measures Goodwill-Impairments Others Discontinued operations METRO GROUP METRO Cash & Carry: portfolio optimisation and restructuring Media-Saturn: portfolio and efficiency measures like reduction of selling space Real: impairment and store closings Discontinued operations: EBIT impact of Galeria Kaufhof sale 15 December 2015 METRO AG

21 NEW LOGISTICS NETWORK IN GERMANY TO IMPROVE EFFICIENCY New locations and more efficient processes to become significantly more competitive Investments in the high double-digit million euro range Higher product availability, quality and freshness Annual savings in the medium double-digit million euro range expected 15 December 2015 METRO AG

22 FINANCIAL PRIORITIES 2015/16 Enhancement of financial value potentials Further bolt-on acquisitions to support strategic development Continuing tight cost control Optimising net working capital and cash flow management Further strengthening balance sheet Mix of further strengthened financial profile and investments into strategic growth opportunities to achieve sustainable value creation for our shareholders 15 December 2015 METRO AG

23 AGENDA 01 Strong Progress Made in 2014/15 02 Financials FY 2014/15 03 Strategic Update 04 Outlook 2015/16 15 December 2015 METRO AG

24 METRO CASH & CARRY: HIGHLIGHTS FY 2014/15 LfL sales up by 0.9% with positive development in all quarters Western Europe with positive LfL growth in France, Italy, Spain and Portugal Eastern Europe with positive LfL growth in almost every country Asia with LfL growth in India and Japan LfL Food sales +2.1% emphasises superior distinguished expertise Delivery sales increased by 13.7% to 3.1 billion 22 new store openings, 24 store closures including closure of 5 stores in Denmark and 9 divestments in Greece Integration Classic Fine Foods well on track Sale of METRO Cash & Carry Vietnam in final phase Like-for-Like Sales Development in % 2013/ / Q4 FY Q1 Q2 Q3 Q4 FY EBIT Development in million 2013/ / Q4 FY Q1 Q2 Q3 Q4 FY Delivery Sales Share in % 2013/ / Q4 FY Q1 Q2 Q3 Q4 FY 15 December 2015 METRO AG

25 THE CORE OF OUR BRAND: CHAMPION FOR INDEPENDENT BUSINESS Key message: We help independent entrepreneurs to grow and win. Clear focus on target groups localized strategy per country Intensified effort to engage in communities Aim to continuously increase our relevance Strengthening of solution mind set, including own brands Intensive effort to further improve Employee Engagement. Our people are the most important success factor 15 December 2015 METRO AG

26 WHERE WE WANT TO GO Omnichannel and full service systems partner Stores Trader shops (Food Service) Delivery E commerce Market leadership in selected customer segments Horeca Trader Services, Companies, Offices 15 December 2015 METRO AG

27 TECHSTARS METRO ACCELERATOR TO IDENTIFY AND BOOST DIGITAL INNOVATIONS FOR OUR CUSTOMERS The world s first Hospitality & Food Tech accelerator. Seeking the best digital innovations for hotels and restaurants. Intensive start-up-bootcamp Broad network of experienced mentors 3 prestigious partners 11 companies qualified Techstars METRO ACCELERATOR with R/GA Berlin 2015/ December 2015 METRO AG

28 WE SELECTED 11 COMPANIES Zenchef A one-stop SaaS marketing and CRM provider for restaurants Coffee Cloud Flowtify Gastrozentrale Journy GroupRaise Lunchio Poshpacker Roomatic Rublys Wynd Device for coffee cup counting and real time espresso machine monitoring A tablet based reporting app for a paperless HACCP and Quality Management State-of-the-art b2b online marketplace for restaurant and hotel supply products The best custom travel itineraries for $50 a city people eat at a restaurant that donates a % of sales to a cause Reserve, pre-order and pay for your lunch online in advance from anywhere Offers millennials and like-minded travelers a way to find book affordable yet wildly creative hoteliers worldwide Allows guests to connect to hotel services with their mobile device The app that playfully brings new customers by using free scratch cards Digitalizes physical stores through connected businesses 15 December 2015 METRO AG

29 UPDATE ON THE NEW OPERATING MODEL Value Creation Plans in progress and expected to be finished by April/May 2016 Value Creation Teams fully staffed Streamlining of Cash & Carry s central functions nearly finished 7 Federations initiated 7 FEDERATIONS Horeca - Multi Specialist - Trader: Strict focus on customer groups to support Strategic steering Knowledge sharing Implementation of best practice approaches 15 December 2015 METRO AG

30 STRATEGIC AMBITIONS Being the Champion for Independent Business Strong differentiation through exceptional food competence Serving our customer through various channels Strengthening of solution mind set Establishment of the New Operating Model Implementation and development of innovative wholesale concepts with focus on digitalisation Ongoing cost structure review Overall Ambition: Market Leadership in well defined sectors through unique product ranges and strong focus on B2B solutions that make our customers more competitive 15 December 2015 METRO AG

31 15 December 2015 METRO AG

32 MEDIA-SATURN: HIGHLIGHTS FY 2014/15 LfL sales up 3.1% with positive development in all quarters Continued strong growth in online sales: +20% to 1.8 billion (8% of total sales) Internet offering of more than 150,000 products at Media Markt and around 130,000 at Saturn Market share increased 70bps to 13.3% (highest ever); 11 out of 15 markets grew Recognition as distribution partner of choice further improved EBIT improvement in nearly all countries 36 new store openings, 15 store closures Integration of RTS started Like-for-Like Sales Development in % 2013/ / Q4 FY Q1 Q2 Q3 Q4 FY EBIT Development in million 2013/ / Q4 FY Q1 Q2 Q3 Q4 FY Online Sales in million / / Q4 FY Q1 Q2 Q3 Q4 FY 1 Adjusted for Redcoon Denmark and France 15 December 2015 METRO AG

33 ALL STRATEGIC BUILDING BLOCKS SHOW STRONG DEVELOPMENT LfL performance brick & mortar Return to growth for the first time since countries with increasing LfL brick and mortar sales in FY 2014/15 Online sales Online share reached 8% of total sales Current pick-up-ratio as high as 40%, e.g. in Germany Commissions and services Over 1 billion sales in commissions and services ~5% of total sales 15 December 2015 METRO AG

34 STRATEGIC UPDATE I Ongoing portfolio optimisation 36 store openings 15 store closures 28 sales space reductions All expiring rental contracts are re-negotiated based on store performance Integration of Redcoon Local Media-Saturn organisation with full operative responsibility Redcoon with identical purchasing terms & conditions as Media- Saturn Goal is to maximise market share and profit in each market Electronic shelf labelling Roll out to all stores completed until the end of FY 2015/16 First feedback signals a significant improvement of staff efficiency in the stores 15 December 2015 METRO AG

35 STRATEGIC UPDATE II RTS Majority shareholding in customer and repair service provider to expand service offering Services both in store and at home Saturn Connect New store format pilots with focus on city centres (Cologne, Trier) Hotspot for digital lifestyle Focus on mobile and innovative products as well as services and contracts Same day delivery Delivery of online orders within 3 hours Service in 170 German cities (80% coverage) 15 December 2015 METRO AG

36 MEDIA-SATURN START-UP ENGAGEMENT Launched on August 26, 2015 Access to innovation, talent & entrepreneurs Low risk investments for Media-Saturn Superb press and insider feedback Media-Saturn recognized as relevant digital investor Start-ups invest in Media-Saturn ecosystem More than 100 applications from 21 countries; 4 finalists selected* *Final documentation under negotiation 15 December 2015 METRO AG

37 STRATEGIC AMBITIONS Mission The partner, day-to-day companion and navigator for consumers in the fascinating yet sometimes confusing digital world Vision The leading provider of consumer electronics and corresponding services in Europe with a sustainable and profitable market position in selected countries Strategy Transition from pure high-volume, transactional and undifferentiated retail business into a target group and country-specific portfolio of brands, channels and formats based on a data-based understanding of our customers 15 December 2015 METRO AG

38 REAL GERMANY: HIGHLIGHTS FY 2014/15 After good first half, LfL sales down 0.8% due to intensive competition and food price deflation 107 remodeled stores with positive contribution to sales development and customer frequency Online sales more than doubled to 47 million Streamlining of store portfolio: 14 non-profitable stores closed Shift of settlement to Markant and buying co-operation with PHD to strengthen buying power Supply chain centralization of logistics flow Like-for-Like Sales Development in % 2013/ / Q4 FY Q1 Q2 Q3 Q4 FY REAL EBIT Development in million 2013/ / Q4 FY Q1 Q2 Q3 Q4 FY Exit of German retail collective agreement with target to negotiate competitive framework for personnel costs 15 December 2015 METRO AG

39 STRATEGIC UPDATE CUSTOMER ORIENTED REAL OF TOMORROW Concept Costs Increased localization of individual stores Continuous growth of Real online platform Preparation of food click-and-collect/delivery option for stores Extension of organic ranges such as permaculture Continue supply chain efficiency effort Optimized energy consumption Achieve competitive labour cost levels to allow for more service Remodellings Modernization effort to be continued Big Bang 2.0 pilot in preparation Further innovations to be piloted Real estate Consideration of selective acquisition of attractive stores 15 December 2015 METRO AG

40 STRATEGIC AMBITIONS Develop Real into a truly differentiated shopping experience for the big weekly shop based on Strong and unique food offer Emotionalized and modernized store experience More service and support in selected departments More focussed non-food offer Multichannel integration Big Bang 2.0 pilot based on learnings plus new considerations to be implemented in Q2/Q3 2015/16 Overall Ambition: Unique choice and quality in food retail complemented by a compelling non-food range. Well-adjusted to serve our key customer groups. Enhanced through multichannel. 15 December 2015 METRO AG

41 AGENDA 01 Strong Progress Made in 2014/15 02 Financials FY 2014/15 03 Strategic Update 04 Outlook 2015/16 15 December 2015 METRO AG

42 ECONOMIC OUTLOOK 2015/16: GENERAL CONDITIONS Global GDP growth of approx. 2.5% Germany ~1.5% Western Europe ~1.5% Eastern Europe ~1.5%, Russia stabilizing on low level Asia ~4%, China ~6.5% Worldwide GDP growth on level of previous business year, only minor stimulus for retail Continuing political and economic imponderables Different developments in emerging and industrialized countries: Uncertainty about economic development of China and Russia Tensions between Russia/Ukraine ongoing Disputes in Middle East continue Uncertainties regarding terror risks Risk given for negative impact on GDP growth/currencies 15 December 2015 METRO AG

43 OUTLOOK 2015/16: FINANCIAL TARGETS Reported Guidance billlion FY 2014/15 FY 2015/16 LfL sales growth +1.5% >0% EBIT before special items >1,511 1 Capex ~2,000 2 Number of new store openings 58 ~70 1 Based on constant foreign exchange rates 2 75% going concern and 25% innovation and M&A Net debt without further acquisitions stable on the level of 2.5 billion 15 December 2015 METRO AG

44 SUSTAINABLE VALUE CREATION Portfolio in good shape Clear defined customer focus for all sales lines Continued strict cost focus Strong balance sheet allows us to Invest into focused expansion Modernise store network Let shareholders participate in our success (higher payout ratio) LfL Sales Growth 2014/15 Midterm (~2020) 1.5% >2% EBIT Margin 2.6% >3.5% Capex 1.4 bn ~ 2 bn Rating BBB- BBB Well on track to achieve our midterm financial goals 15 December 2015 METRO AG

45 TRANSFORMATION OF METRO GROUP ACQUISITIONS STARTUP INV. / ACCELERATORS BUSINESS INNOVATION STRATEGY MODERNISATION OF OUR BUSINESS MODELS FOCUS PORTFOLIO OPTIMISATION DEBT REDUCTION SUSTAINABILITY CORPORATE CULTURE, MANAGEMENT CULTURE, EMPLOYEE ENGAGEMENT Accelerated Growth of modernized CORE BUSINESS CUSTOMER-CENTRIC STRATEGY December 2015 METRO AG

46 TRANSFORMATION OF METRO GROUP New Growth Opportunities ACQUISITIONS STARTUP INV. / ACCELERATORS BUSINESS INNOVATION STRATEGY MODERNISATION OF OUR BUSINESS MODELS FOCUS PORTFOLIO OPTIMISATION DEBT REDUCTION SUSTAINABILITY CORPORATE CULTURE, MANAGEMENT CULTURE, EMPLOYEE ENGAGEMENT Accelerated Growth of modernized CORE BUSINESS CUSTOMER-CENTRIC STRATEGY December 2015 METRO AG

47 Q&A Olaf Koch CEO Mark Frese CFO 15 December 2015 METRO AG

48 FY 2014/15 RESULTS PRESENTATION 15 December 2015