for those who want to benefit

Classification level: Public

FOR THOSE WHO WANT TO BENEFIT

FROM METRO’S OWN BRAND

Düsseldorf, February 2015

Kees Postma

Corporate Food Management

METRO AG


METRO CASH & CARRY – A CORE BRAND OF METRO GROUP

February 2015 | Member of METRO GROUP

METRO Cash & Carry

1

METRO GROUP sales 2013/14: €63.0 billion

Cross-functional companies

Hypermarkets

Sales 2013/14 (bn): €8.4

Countries: 2

Stores: 311

Wholesale

Sales 2013/14 (bn): €30.5

Countries*: 26….

Stores*: 761

Status: 30 September 2014

*Status: 1 February 2015

Sales 2013/14 (bn): €3.1

Countries: 2

Stores: 137

Department

stores

Sales 2013/14 (bn): €21.0

Countries: 15

Stores: 986

Consumer

electronics stores


LEADING INTERNATIONAL PLAYER IN WHOLESALE


METRO Cash & Carry

2

Status: 30 September 2014

*Status: 01 February 2015

**By headcount as of closing date 30/9/2013

Over 5.5 million m² total sales area

More than 117,000 employees**

Sales of €30 billion in 2013/14

761 stores in 26 countries*


A HISTORY OF EXPANSION


METRO Cash & Carry

3

** Full-time equivalents as of closing date 30/9/2013, Source: Annual Report 2013 *Status: 01 February 2015

Countries Stores* Employees** Market

entry

Region West

Austria 12 1,910 1971

Belgium 15 2,796 1970

France 93 8,238 1971

Germany 107 12,748 1964

Italy 49 3,862 1972

Netherlands 17 2,471 1968

Portugal 10 1,130 1990

Spain 37 3,515 1972

Region East

Bulgaria 13 2,261 1999

Croatia 7 1,122 2001

Czech Rep. 13 3,281 1997

Hungary 13 2,586 1994

Kazakhstan 8 1,007 2009

Moldova 3 617 2004

Poland 41 5,883 1994

Romania 31 4,908 1996

Russia 80 17,512 2001

Serbia 10 1,309 2005

Slovakia 6 1,269 2000

Turkey 28 4,420 1990

Ukraine 33 4,249 2003

Region Asia

China 81 11,910 1996

India 16 3,335 2003

Japan 9 777 2002

Pakistan 9 1,843 2007

Vietnam 19 3,634 2002


CASH & CARRY WHOLESALE EXCLUSIVELY

FOR PROFESSIONAL CUSTOMERS (I)


METRO Cash & Carry

4

Horeca* Traders Services Institutions

Hotels

Restaurants

Caterers

Fast food

Bars and cafes

Accommodation

Canteen

Generalist food

Specialist food

Kiosks and petrol

stations

Wholesaler

Institutions

Office-based

services

Industries

Nonfood traders

Health care

Physical services

Wellness

Craftsmen

* Horeca: Hotel/Restaurant/Catering


CASH & CARRY WHOLESALE EXCLUSIVELY FOR PROFESSIONAL

CUSTOMERS (II)


METRO Cash & Carry

5

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, one-

stop-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


FRESHNESS AND QUALITY IN FOOD DEPARTMENTS


METRO Cash & Carry

6

Fruit and vegetables

Fresh fish Dairy Meat 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)


CATEGORY KILLER IN PROFESSIONAL NON-FOOD


METRO Cash & Carry

7

Professional household

Seasonal Professional

media Office

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


THREE DIFFERENT STORE SIZES


METRO Cash & Carry

8

Lorem ipsum Dolor sit Lorem ipsum Dolor sit Lorem ipsum Dolor sit Classic (minimum 10,000 m²) Junior (6,500–8,500 m²) ECO (2,500–6,500 m²)

Horeca, Trader

2,000 – 8,000 customers

12,000 – 18,000 SKU

Most widely used in France,

Southern Europe and Japan

All customer segments

20,000 – 60,000 customers

24,000 – 30,000 SKU

Prime format in Eastern

Europe and Asia

All customer segments

30,000 – 100,000 customers

30,000 – 55,000 SKU*

Prime format Western

Europe

* SKU: Stock Keeping Unit


ADVANCED CUSTOMER SERVICES


METRO Cash & Carry

9

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

HACCP solutions like isolated and washable cooling boxes

In-store customer consultants Out-store customer consultants

Customer specific mailings (e.g. METRO Post)

Advanced customer communication on METRO’s website

Know-how transfer Trader support

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

Support in differentiation from competitor

Professional shop lay-out and merchandising

Equipment solutions

Implementation of HACCP


ASSUMING RESPONSIBILITY ALONG THE SUPPLY CHAIN

METRO Cash & Carry

February 2015 | Member of METRO GROUP 10

Sustainability Trainings Traceability systems

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

Implementation of a traceability

system from “Farm to Fork”

Ensure international standards

(e.g. EDI) and drive new

technologies (e.g. RFID)

Ensure data Integrity

Information management and

data integrity

Direct sourcing from producers

Locally sourcing majority of goods

Optimize logistics flow with

modern distribution platforms

Using modern technologies for

improved transparency

Constantly optimizing the

supply chain


OWN BRANDS: FOCUS ON TOP 6 BRANDS


METRO Cash & Carry

11

Basic products for daily needs

Great quality at a competitive

price

Essentials for all areas of

guest contact

Customized needs of Horeca

Unique for bars and cafés

Tailor-made to the professional needs of our customers: HORECA, TRADER, SCO

Each brand provides complete solutions as basis for successful business

Solutions for office products


INTERNATIONAL AND LOCAL

METRO Cash & Carry


Sourcing

• Supplier market

development

• Innovation

• Sustainability

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


METRO Cash & Carry

November 2014 | Member of METRO GROUP 13

International OB Development and Sourcing

Challenges & Opportunities for OB Suppliers

→ 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

→ 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


NEW OWN BRAND RANGES

METRO Cash & Carry


Pouch Range

Target Group Professional solution for Horeca customers

SKU

Unique

product

specification

15 existing articles

20 new articles coming in spring 2015

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

Heating process:

3 hs 40 min

Easy to carry Easy to use Easy to open Flat after use


METRO Cash & Carry



HS Spices QR CODE CAMPAIGN

215 articles of Spices

& Herbs

96 Articles supporting

QR code

Roll-out in 18 countries

RANGE

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

ADDED BENEFIT

By scanning the QR code,

the customer is directed to

mobile website with hands

on information.

MOBILE WEBSITE

^


METRO Cash & Carry



Full Cleaning Range Solution

• All countries are participating in

the project

• Core range - 26 articles

• Availability on shelf - spring 2015

SCOPE

• Selling Customer Solutions which

address their full needs

• One cleaning World for professionals in

METRO Store

TARGET

Implementation of BICS Color Coding

(British Institute of Cleaning Science)

for those who want to benefit

Documents