FOR THOSE WHO WANT TO BENEFIT FROM METRO’S OWN BRAND Düsseldorf, February 2015 Kees Postma Corporate Food Management METRO AG

Classification level: Public

METRO CASH & CARRY – A CORE BRAND OF METRO GROUP

Wholesale

Sales 2013/14 (bn): €30.5 Countries*: 26…. Stores*: 761

Consumer electronics stores

Sales 2013/14 (bn): €21.0 Countries: 15 Stores: 986

Hypermarkets

Sales 2013/14 (bn): €8.4 Countries: 2 Stores: 311

Department stores

Sales 2013/14 (bn): €3.1 Countries: 2 Stores: 137

Cross-functional companies METRO GROUP sales 2013/14: €63.0 billion Status: 30 September 2014 *Status: 1 February 2015

METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

1

LEADING INTERNATIONAL PLAYER IN WHOLESALE

761 stores in 26 countries*

Over 5.5 million m² total sales area

More than 117,000 employees**

Sales of €30 billion in 2013/14 Status: 30 September 2014 *Status: 01 February 2015 **By headcount as of closing date 30/9/2013

METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

2

A HISTORY OF EXPANSION Countries Region West Austria Belgium France Germany Italy Netherlands Portugal Spain Region East Bulgaria Croatia Czech Rep. Hungary Kazakhstan Moldova Poland Romania Russia Serbia Slovakia Turkey Ukraine Region Asia China India Japan Pakistan Vietnam

*Status: 01 February 2015

Stores*

Employees**

Market entry

12 15 93 107 49 17 10 37

1,910 2,796 8,238 12,748 3,862 2,471 1,130 3,515

1971 1970 1971 1964 1972 1968 1990 1972

13 7 13 13 8 3 41 31 80 10 6 28 33

2,261 1,122 3,281 2,586 1,007 617 5,883 4,908 17,512 1,309 1,269 4,420 4,249

1999 2001 1997 1994 2009 2004 1994 1996 2001 2005 2000 1990 2003

81 16 9 9 19

11,910 3,335 777 1,843 3,634

1996 2003 2002 2007 2002

** Full-time equivalents as of closing date 30/9/2013, Source: Annual Report 2013

METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

3

CASH & CARRY WHOLESALE EXCLUSIVELY FOR PROFESSIONAL CUSTOMERS (I)

Horeca*

      

Hotels Restaurants Caterers Fast food Bars and cafes Accommodation Canteen

Traders

 Generalist food  Specialist food  Kiosks and petrol stations  Wholesaler

Institutions

 Institutions  Office-based services  Industries  Nonfood traders

Services

   

Health care Physical services Wellness Craftsmen

* Horeca: Hotel/Restaurant/Catering

METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

4

CASH & CARRY WHOLESALE EXCLUSIVELY FOR PROFESSIONAL CUSTOMERS (II)

 Up to 20,000 food and 30,000 non-food products per store satisfying all core and complementary customer needs

 Efficient store and merchandising concept designed for professional needs (warehouse style, onestop-shopping, just-in-time purchase)

 The customer picks his merchandise, pays and transports the goods on his own  New distribution channel: delivery is offered all countries

METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

5

FRESHNESS AND QUALITY IN FOOD DEPARTMENTS

Fruit and vegetables

Fresh fish

Meat

Dairy

Wine

 Leading international wholesaler in fresh fruit and vegetables  One of Europe's biggest fish and meat wholesalers  Excellent quality, especially of meat, fish, fruit and vegetable delivered fresh every day (unparalleled expertise in logistics and state-of-the-art cooling in the store)

METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

6

CATEGORY KILLER IN PROFESSIONAL NON-FOOD

Professional household

Seasonal

Office

Professional media

Cleaning and hygiene

 Large range and variety of professional kitchen equipment, cleaning products, small/large electrical appliances, personal hygiene products  Further strengthening nonfood range: general supplies for business and office

METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

7

THREE DIFFERENT STORE SIZES

Lorem ipsum Dolor sit

Classic (minimum 10,000 m²)

Lorem ipsum Dolor sit

Junior (6,500–8,500 m²)

Lorem ipsum Dolor sit

ECO (2,500–6,500 m²)

 All customer segments

 All customer segments

 Horeca, Trader

 30,000 – 100,000 customers

 20,000 – 60,000 customers

 2,000 – 8,000 customers

 30,000 – 55,000 SKU*

 24,000 – 30,000 SKU

 12,000 – 18,000 SKU

 Prime format Western Europe

 Prime format in Eastern Europe and Asia

 Most widely used in France, Southern Europe and Japan

* SKU: Stock Keeping Unit

METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

8

ADVANCED CUSTOMER SERVICES METRO Cash & Carry offers a variety of customer services:  Customer card services: - transport insurance - special entrance - faster check-out - loyalty programs

 Delivery is now offered in 26 countries

 Customer specific mailings (e.g. METRO Post)

Know-how transfer  Regular trainings for Horeca customers and small retailers to enhance their offer; to increase profitability  Horeca events: quality assurance, fair trade, sustainability and suitable equipment

 HACCP solutions like isolated and washable cooling boxes  In-store customer consultants  Out-store customer consultants

 Advanced customer communication on METRO’s website

Trader support  Support in differentiation from competitor  Professional shop lay-out and merchandising  Equipment solutions  Implementation of HACCP

METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

9

ASSUMING RESPONSIBILITY ALONG THE SUPPLY CHAIN Sustainability

   

Traceability systems

Trainings

Trust through sustainability Minimization of energy costs Waste reduction Supply of products that sustain resources and environment



Training of local farmers and fishermen: standard processing transparent management modern production processing methods

Constantly optimizing the supply chain

 Direct sourcing from producers  Locally sourcing majority of goods  Optimize logistics flow with modern distribution platforms



Implementation of a traceability system from “Farm to Fork”

Information management and data integrity

 Ensure international standards (e.g. EDI) and drive new technologies (e.g. RFID)  Ensure data Integrity

 Using modern technologies for improved transparency METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

10

OWN BRANDS: FOCUS ON TOP 6 BRANDS

Basic products Great quality at a competitive for daily price needs

Customized needs of Horeca

Essentials for all areas of guest contact

Unique for bars Solutions for office products and cafés

 Tailor-made to the professional needs of our customers: HORECA, TRADER, SCO  Each brand provides complete solutions as basis for successful business

METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

11

INTERNATIONAL AND LOCAL Category management • Strategic direction • Customer target group objectives • Assortment Strategy

TGMs • Focus on segments • Customer needs • Market trends • Support customers in their business

OB Range development

Sourcing

• Supplier market development • Innovation • Sustainability

METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

12

International OB Development and Sourcing → Find commonalities in local OB assortment → Define international OB offer architecture → Identify white spots on OB assortment → Enrich OB assortment with new trends, innovations, etc. → Align and Agree with top 5-7 countries

→ All countries informed → Sourcing Process → Range/Products on the shelf

Challenges & Opportunities for OB Suppliers

→ 26 MCC Countries 

Supply Chain



Language Circles on Packaging



Customer Group Share



Market Dynamics and Development

→ Understand MCC Business model

“Champion for independent Business” 

C&C stores



FSD



E-commerce

→ Contribute to improving our

Professional Customers’ Business Success

Full process takes 32 weeks METRO Cash & Carry Classification level: Public

November 2014 | Member of METRO GROUP

13

NEW OWN BRAND RANGES Pouch Range

Target Group



Professional solution for Horeca customers

SKU

 

15 existing articles 20 new articles coming in spring 2015

Unique product specification

  

Sourced directly at peak season in Italy Full taste of fresh tomatoes, special selection Reduction of total heat exposure 40 min in Pouch vs 3hrs in can Easy to handle Food safety in the kitchen Less waste: 40 Empty Pouches = 1 Empty Can

  

Easy to carry

Easy to open

Easy to use

Heating process: 3 hs 40 min

Flat after use

METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

14

NEW OWN BRAND RANGES HS Spices QR CODE CAMPAIGN RANGE  215 articles of Spices & Herbs  96 Articles supporting QR code  Roll-out in 18 countries

 ^

ADDED BENEFIT MOBILE WEBSITE  By scanning the QR code, the customer is directed to mobile website with hands on information.

 Quick cooking tips how to use, cook, portion and store dried spices and herbs  Recipe recommendations from new ideas for kitchen classics to exotic dishes  Mixing option – finding at glance which kind of meat, fish and other spices go best with the customer‘s choice

METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

15

NEW OWN BRAND RANGES Full Cleaning Range Solution

SCOPE •

All countries are participating in

the project •

Core range - 26 articles

•

Availability on shelf - spring 2015

TARGET •

Selling Customer Solutions which address their full needs

Implementation of BICS Color Coding (British Institute of Cleaning Science)

•

One cleaning World for professionals in METRO Store

METRO Cash & Carry Classification level: Public

February 2015 | Member of METRO GROUP

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