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MADE TO TRADE.

October 2012 | © METRO AG 2012

HSBC Corporate Schuldschein ConferenceLondon – 25th October

| © METRO AG 2012MADE TO TRADE. HSBC Corporate Schuldschein Conference 1

1

METRO GROUP at a glance

� One of the world’s leading retail and wholesale companies

� Stock-listed since 1996

� Presence with around 2,200 stores in 32 countries

� More than 280,000 employees from almost 180 nations

� Four sales divisions with leading market positions and growing online presence:

� Active real estate management and development of owned properties and other real estate assets


1996 Today

Portfolio focused from

14 to 4 divisions

From a Conglomerate to a Focused Portfolio


Germany 95%

International 5%

28.1

66.7

2011

Germany 39%CAGR 6%

Eastern Europe 25%

Western Europe 32%

Asia/Africa 4%

1996

Sales split by region (€ billion)

From a National Retailer to an International Player


METRO AG

Worldwide market leader in B2B wholesaling

One of the leading hypermarket operators in

Germany and selected Eastern

European countries

Europe’s number one in consumer

electronics retailing

One of the leading department store chains in Europe

Strong international portfolio of wholesale and retail properties

Sales : €31.2 billionEBIT: €1,148 million Stores : 728Countries : 30Employees 1:112,588

1 Full-time equivalents as at closing date 31 December

Sales : €11.2 billionEBIT: €134 millionStores : 426Countries : 6Employees 1: 52,431

Sales : €20.6 billionEBIT: €542 million Stores : 893Countries : 16Employees 1: 57,585

Sales : €3.5 billionEBIT: €121 millionStores : 140Countries : 2Employees 1: 18,522

EBIT: €643 millionOwned stores : 687Countries : 30Employees 1: 1,213

Fourth Largest Retailer Worldwide in 2011


687 owned stores: Book value of c. €7.1 billion (adj. for finance leases and tenant fittings) per 31/12/2011

GERMANY1,392,000 sqmsales area

WESTERN EUROPE1,520,000 sqmsales area

EASTERN EUROPE2,088,000 sqmsales area

ASIA / AFRICA514.000 sqmsales area

METRO GROUPTOTAL5,514,000 sqmsales area

Gross self-owned floor area MISC (rented to third parties, HQ, department stores)1,392 sqm sales area

Strong Real Estate Assets


Top 10 Retailers Worldwide in 2011

48.10Rewe Group10

62.57Costco7

74.40Tesco3

9

8

6

5

4

2

1

Rank

885.04TOTAL

50.22Target

52.68Aldi

64.96Kroger

65.10Schwarz Group

66.70METRO GROUP

81.27Carrefour

319.04Walmart

2011 Net Sales (€ billion)Company

Sources: Companies, PlanetRetail, LZnet, own research

September 2012 | © METRO AG 2012MADE TO TRADE. METRO GROUP Profile. 77

Sales and earnings developments 2011.

As reported 1Excluding Germany2Adjusted for special items

2010

in € m

2011

in € m in €

in local

currency

METRO GROUP 67.258 66.702 - 0.8 - 0.2

Germany 26.130 25.865 - 1.0 - 1.0

international 41.128 40.837 - 0.7 0.4

Western Europe 1 21.528 20.859 - 3.1 - 3.6

Eastern Europe 16.880 16.953 0.4 3.3

Asia/Africa 2.720 3.025 11.2 14.3

METRO GROUP 2.415 2.372 - 1.8 –

Sales

EBIT2

39 %

Western Europe 1

25 %

32 %

4 %

Group sales by region:

Change in %

GermanyAsia/Africa

Eastern Europe

| © METRO AG 2012MADE TO TRADE. HSBC Corporate Schuldschein Conference

EBIT by Region

-35

765708

587

-51

917

524

-25

927956

504

1,026

€ million (pre-consolidation)

-4% -7% +1% +51% Change vs. prior year

Germany Western Europe Eastern Europe Asia/Africa

2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011


Strategic focal points of METRO GROUP.

� must transform product and services offerings as well as our sales channels

� must grow sustainably by having attractive product ranges and services at competitive price levels to outperform our peers

� must improve cost structures and optimiseself-financing strength to make us more efficient

Customer value is in the focus of our strategy.

We therefore:

Outlook 2012:

� Cash Flow Improvement

� Net Debt Reduction

� Sales Growth

� EBIT around € 2bn


Key Financials H1 2012

� H1- Net working capital improved significantly - Strong improvement in operating cash flow- Lower net debt despite higher cash capex for expansion

30/06/2011 30/06/2012 Change

New store openings 20 28 8

Change in net working capital (€ m) -3,617 -3,028 589

Cash flow from operating activities (€ m) -3,263 -2,913 350

Cash Capex (€ m) -556 -740 -184

Net debt (€ m) 8,396 8,206 -190

MADE TO TRADE.

Finance Strategy


METRO´́s Finance Strategy

Focus on investment grade rating and financial flexibility

� Finance further growth via own cash flow

� Finance existing debt mainly via debt capital markets

� Maintain investment grade rating level

� Secure high financial flexibility at all times

� Reduce rating-relevant net debt level over time

GROWTH PROFITABILITY

DEBT


Rating-relevant Net Debt Development 2002-2011

Net debt slightly decreased over time despite international growth path

75.0

70.0

65.0

60.0

55.0

50.0

45.0

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

2010

12.5

2009

12.4

2008

12.2

2007

11.7

2006

13.2

2005

13.6

2004

14.2

2003

14.9

2002

14.8

2011

13.0

7.9

1.0

1.8

2.3

Net Debt on balance without Finance Leases

SalesFinance Leases

Provisions for pensions

NPV Operating Leases*

* S&P methodology

€ billion € billion


METRO's Funding Tool Box

� Benchmark-Bonds up to 10 years to cover the long-term funding needs plus

� Private placements / Schuldscheine with individual tenors (min. €50 million)

� EMTNs (1-2 years) and Commercial Paper (CP) to cover short-term funding needs

� Back-up liquidity of €3.1bn with maturities > 1 year

Breakdown of funding sources (as at 30/06/2012)

0

1

2

3

4

5

6

€ billion

Schuld-schein

Bank Loans &

Committed bilateral Lines

CommittedSyndicated

Loans

Commercial Paper

Programme

Debt Issuance

Programme

DrawnUndrawn

Breakdown of credit facilities (as at 30/06/2012)

“Funding tool box” proves high level of flexibility at all times

6%

19%

30%

45%

CommittedBank Lines

SyndicatedLoans

CommercialPaper

Debt IssuanceProgramme


0

250

500

750

1.000

1.250

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

€ million

Bonds

Schuldschein

Corporate Finance & Rating

� Balanced long-term maturity profile

S&P methodology

Net Debt / EBITDA (RHS)Funds from Operations / Net Debt (LHS)

Rating metrics

21 6% 21 9%22.8%

24.2%21.1%

2.9x3.1x

3.2x

3.5x3.4x

15%

20%

25%

30%

2007 2008 2009 2010 2011

2.5x

3.0x

3.5x

4.0x

� Investment grade ratings at:

� S&P: BBB- stable

� Moody’s: Baa3 stable

MADE TO TRADE.

METRO Schuldschein


Schuldschein is part of our Funding Tool Box

� Opportunistic use of the Schuldschein since 2006

� Syndicated and single investor deals

� Established documentation in place

0

100

200

300

400

500

2006 20082007 2009 2010 20122011

Broadly syndicated deals since 2008

Single investor deals

Launch of Schuldschein deals since 2006

in € million


f loating77%

f ix

23%

Deal Review €500 million Schuldschein 2008

� First syndicated Schuldschein for METRO

� Largest syndicated Schuldschein at that time

� Considerable price advantage compared to bond

by investor’s type

Terms and Conditions

Issuer Metro Finance B.V.

Guarantor: METRO AG

Rating Baa2 (stable) / BBB (stable)

Documentation Schuldschein under German law

Status Senior unsecured

Total size €500 million

Settlement March 2008

Maturities March 2012

Commercial Banks60%

Savingsbanks26%

Landesbanks14%

Allocation breakdown (in %)

by coupon

71%

6%

6%

4%

3%5%0%1% 4% Germany

Austria

Sw eden

China

Italy

Japan

Egypt

Turkey

Spain

by country


Deal Review €254 million Schuldschein 2012

32%

22%

2%

44%

Banks 32% Insurances 22%Pension Funds 2% Savings Banks 44%

Terms and Conditions

Issuer Metro AG

Rating Baa2 (negative) / BBB (stable)

Documentation Schuldschein under German law

Status Senior unsecured

Total size €254 million

Settlement March 2012

Maturities 2016, 2018 and 2022

Allocation breakdown (in %)

by investor’s type by tenor

53%

26%

21%

4 years 53% 6 years 26% 10 years 21%

63%

37%

Fix 63%

� First 10 years tranche agreed with investors

� Increasingly insurance companies as investors

� Significant lower floating tranche compared to 2008

by coupon

Floating 37%


Comparison Schuldschein vs. Bonds

Pros

� Additional investor base

� Fix and float tranches

� Individual tenors

� High allocation to investors compared to the bond market

� sufficient time for investors to analyse the credit

� No mark-to-market valuation

� Limited market volume (niche product)

� Long execution period in syndicated deals

Cons

Attractiveness of terms & conditions is key for a handshake


METRO GROUP

Creditor Relations

Tel.: +49 (0)211 6886-1904

Email: [email protected]

Internet: www.metrogroup.de

Contact

Hans-Dieter Hinker

Vice President

Head of Group Financing

METRO AG

Schlueterstrasse 140235 Duesseldorf

Germany

Tel.: +49 (0) 211 6886-2779E-Mail: [email protected]

Thank you for your kind attention!

MADE TO TRADE.

Appendix


Metro Cash & Carry

37%

Asia/Africa

9%

EasternEurope

Western Europe

38%

Germany

16%

Sales and EBIT Margin

2011 Regional Sales Breakdown

Financials (€ million) 2001 2002 2003 2004 2005 2006 2007 2008* 2009* 2010* 2011*

Sales 22,726 23,972 25,093 26,442 28,087 29,907 31,698 33,143 30,613 31,095 31,155

Change yoy in % 8.1% 5 5% 4.7% 5.4% 6.2% 6.5% 6 0% 4.6% -7.6% 1.6% 0.2%

Change yoy in % - LC 8.8% 6.4% 7.7% 5.6% 4.4% 6.2% 5.7% 5.4% -2.5% -0.6% 1.4%

Change yoy in % - lfl (LC) - 1.4% 1.6% 1.1% -0.3% 1.9% 2 2% 2.4% -4.9% -1.7% 0.1%

EBITDA 972 1,078 1,200 1,280 1,377 1,510 1,631 1,406 1,165 1,374 1,408

Change yoy in % 11.4% 10 9% 11.2% 6.7% 7.6% 9.6% 8 0% - -17.2% 18.0% 2.4%

EBITDA margin 4.3% 4 5% 4.8% 4.8% 4.9% 5.0% 5.1% 4.2% 3.8% 4.4% 4.5%

EBIT** 716 805 904 963 1,013 1,111 1,243 1,139 936 1,104 1,148

Change yoy in % 11.7% 12.4% 12.3% 6.5% 5.1% 9.7% 11 9% - -17.8% 17.9% 4.0%

EBIT margin 3.2% 3.4% 3.6% 3.6% 3.6% 3.7% 3 9% 3.4% 3.1% 3.6% 3.7%

Capital Employed - - - - - - - 5,648 6,050 6,368 7,137

Pre-tax RoCE (lease-adj.) - - - - - - - 23.4% 18.9% 20.6% 18.8%

Capex 839 750 737 619 900 880 859 336 220 499 799

* New segment reporting structure

** until 2003: EBITA

Operating Statistics 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Number of stores 384 437 475 504 544 584 615 655 668 687 728

Selling space (1,000 sqm) 3,182 3,423 3,725 3,952 4,218 4,507 4,875 5,176 5,291 5,355 5,517

Change yoy in % 7.1% 7 5% 8.8% 6.1% 6.7% 6.9% 8 2% 6.2% 2.2% 1.2% 3.0%

Average store size (sqm) 8,287 7,832 7,841 7,841 7,754 7,717 7,927 7,902 7,921 7,795 7,578

Sales/Øsqm (€) 7,386 7,259 7,021 6,889 6,876 6,856 6,757 6,595 5,849 5,842 5,731

0%

1%

2%

3%

4%35,00032,50030,00027,50025,00022,50020,00017,50015,00012,50010,000

7,5005,0002,500

0

’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11’01

EBIT marginSales (€ million)


Real

26%

EasternEurope

Germany

74%



4%

3%

2%

1%

0%

12,000

10,000

8,000

6,000

4,000

2,000

0

’11’10’09’08’07’06’05’04’03’02’01


Financials** (€ million) 2001 2002 2003 2004 2005 2006 2007 2008* 2009* 2010* 2011*

Sales 8,375 8,198 8,205 8,182 8,192 8,775 11,003 11,635 11,298 11,499 11,230

Change yoy in % 2.6% -2.1% 0.1% -0.3% 0.1% 7.1% 25.4% 5.8% -2.9% 1 8% -2.3%

Change yoy in % - LC 3.0% -1.1% 1.2% 0.0% -1 2% 7.1% 25.0% 5.4% 1.3% 0 2% -1.4%

Change yoy in % - lfl (LC) - -1.4% 0.1% -2.2% -4.7% -2.5% -0.1% 4.4% 0.0% 0.1% -0.8%

EBITDA 353 372 384 352 -121 192 160 191 226 321 321

Change yoy in % 28.0% 5.3% 3.1% -8.3% - 45.4% -16.7% - 18.3% 42.7% -0.3%

EBITDA margin 4.2% 4.5% 4.7% 4.3% -1 5% 2.2% 1.5% 1.6% 2.0% 2 8% 2.9%

EBIT*** 202 228 242 219 -2 19 -16 6 52 132 134

Change yoy in % 46.0% 13.5% 5.9% -9.3% - - - - - - 1.2%

EBIT margin 2.4% 2.8% 2.9% 2.7% 0 0% 0.2% -0.2% 0.1% 0.5% 1.1% 1.2%



Capex 248 160 174 110 255 854 345 250 193 156 166

* New segment reporting structure

** excluding Extra

*** until 2003: EBITA

Operating Statistics** 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Number of stores 277 278 289 306 328 442 434 439 441 429 426


Change yoy in % 0.5% 0.1% 3.0% 2.7% 5 0% 40.9% -1.7% 1.4% 1.1% -2.4% -0.8%


Sales/Øsqm (€) 4,165 4,063 4,005 3,884 3,743 3,250 3,515 3,723 3,569 3,656 3,629


Media-Saturn

12%

Asia

1%

EasternEurope

Western Europe

42%

Germany45%



0%

1%

2%

3%

4%

5%

6%

7%20,000

17,500

15,000

12,500

10,000

7,500

5,000

’11’10’09’08’07’06’05’04’03’02’01


Financials (€ million) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Sales 8,341 9,583 10,563 12,210 13,306 15,156 17,444 18,993 19,693 20,794 20,604

Change yoy in % 9.5% 14 9% 10.2% 15.6% 9.0% 13.9% 15.1% 8.9% 3.7% 5.6% -0.9%

Change yoy in % - LC 9.1% 14 8% 11.0% 15.8% 8.5% 13.9% 14.2% 8.4% 5 5% 4.3% -1.0%

Change yoy in % - lfl (LC) - 3 2% 0.9% 4.6% -1.4% 3.0% 2.6% -2.1% -0.4% -1.2% -4.3%

EBITDA 368 431 506 612 679 776 818 839 851 876 809

Change yoy in % -1.9% 17 0% 17.6% 20.8% 11.0% 14.4% 5.4% - 1.4% 2.9% -7.6%

EBITDA margin 4.4% 4 5% 4.8% 5.0% 5.1% 5.1% 4.7% 4.4% 4 3% 4.2% 3.9%

EBIT* 228 290 360 452 510 587 610 603 608 625 542

Change yoy in % -16.1% 27 0% 24.3% 25.5% 12.8% 15.2% 3.9% - 0 8% 2.8% -13.4%

EBIT margin 2.7% 3 0% 3.4% 3.7% 3.8% 3.9% 3.5% 3.2% 3.1% 3.0% 2.6%


Pre-tax RoCE (lease-adj ) - - - - - - - 26.8% 27 0% 25.5% 20.2%

Capex 264 350 229 261 315 370 463 402 353 362 434

* until 2003: EBITA


Number of stores 357 386 436 503 558 621 702 768 818 877 893

Selling space (1,000 sqm) 976 1,129 1,307 1,514 1,704 1,914 2,213 2,439 2,633 2,829 2,880

Change yoy in % 14.6% 15.6% 15.8% 15.8% 12.6% 12.3% 15.6% 10.2% 8 0% 7.4% 1.8%


Sales/Øsqm (€) 9,126 9,105 8,671 8,656 8,270 8,379 8,454 8,166 7,765 7,614 7,218


Galeria Kaufhof

Western Europe

10%

Germany

90%



0%

1%

2%

3%

4%

5%

6%

7%4,000

3,000

2,000

1,000

0

’11’10’09’08’07’06’05’04’03’02’01


Financials (€ million) 2001 2002 2003 2004 2005 2006 2007 2008* 2009* 2010* 2011*

Sales 3,971 3,900 3,819 3,768 3,575 3,609 3,556 3,607 3,539 3,584 3,450

Change yoy in % 0.8% -1 8% -2.1% -1.3% -5.1% 0.9% -1 5% -1.1% -1.9% 1.3% -3.7%

Change yoy in % - lfl -3.7% -4 5% -2.2% -1.2% -4.8% -0.6% -1.7% -1.4% -2.2% 1.2% -3.4%

EBITDA 349 292 249 199 189 192 211 223 223 233 219

Change yoy in % 7.9% -16 3% -14.7% -19.9% -5.4% 1.8% 10 0% - 0.2% 4.7% -5.8%

EBITDA margin 8.8% 7 5% 6.5% 5.3% 5.3% 5.3% 5 9% 6.2% 6.3% 6.5% 6.4%

EBIT** 190 139 99 57 69 82 107 115 119 138 121

Change yoy in % 4.8% -26 8% -28.4% -43.6% 21.8% 18.1% 31 3% - 3.4% 16.5% -12.5%

EBIT margin 4.8% 3.6% 2.6% 1.5% 1.9% 2.3% 3 0% 3.2% 3.4% 3.9% 3.5%



Capex 202 120 104 120 96 151 107 128 57 104 124

* New segment reporting structure; since 2009 including Dinea

** until 2003: EBITA


Number of stores 148 150 148 147 142 142 141 141 141 138 140


Change yoy in % 9.1% 1.1% 0.1% 1.0% -0.5% 1.5% -0.1% 0.2% 0.7% -1.4% -0.3%


Sales/Øsqm (€) 2,879 2,693 2,622 2,572 2,434 2,445 2,392 2,363 2,367 2,405 2,335


Real Estate: Unique International Asset Base

as at 31/12/2011

Number of stores

Selling space (1,000 sqm)

Number of stores

Selling space (1,000 sqm)

Share of selling space

Metro Cash & Carry 728 5,517 529 4,107 74%

Real 426 3,082 78 605 20%

Media-Saturn 893 2,880 16 94 3%

Galeria Kaufhof 140 1,475 64 790 54%

METRO GROUP 2,187 12,954 687 5,595 43%

Germany 937 5,792 141 1,392 24%

Western Europe 619 3,030 205 1,517 50%

Eastern Europe 531 3,504 262 2,172 62%

Asia/Africa 100 628 79 515 82%

* IAS 16

Misc. (leased to third parties, HQ, warehouses, etc.)

Total Owned*

Owned*

1,355

Gross floor area (1,000 sqm)


Number of Stores by Division and Country

Q2 H1 30/06/12 Q2 H1 30/06/12 Q2 H1 30/06/12 Q2 H1 30/06/12 Q2 H1 30/06/12

Germany 107 -1 -2 314 +1 +4 393 -4 -3 122 -4 -1 936Austria 12 44 56

Belgium +1 +1 12 21 15 +1 +1 48

Denmark 5 5

France 92 92

Italy 48 +1 +3 113 +1 +3 161

Luxemburg 2 2

Netherlands 17 +1 +1 39 +1 +1 56

Portugal 11 -1 9 -1 20Spain 34 +2 68 +2 102

Sweden +1 25 +1 25

Switzerland 27 27

United Kingdom 30 30

Western Europe +1 +1 261 +4 +4 348 15 +5 +5 624Bulgaria 14 14

Croatia 7 7Czech Republic 13 13

Greece 9 10 19

Hungary 13 21 34

Kazakhstan +2 8 +2 8

Moldova 3 3

Poland +1 +2 41 54 61 +1 +2 156

Romania 32 -1 -1 24 -1 -1 56

Russia +3 +4 66 18 +1 +1 37 +4 +5 121Serbia 9 9

Slovakia 6 6

Turkey 24 12 25 61

Ukraine 31 1 32

Eastern Europe +4 +8 276 -1 -1 109 +1 +1 154 +4 +8 539China +1 +3 55 7 +1 +3 62

Egypt 2 2India +1 +2 11 +1 +2 11

Japan 9 9

Pakistan +4 9 +4 9

Vietnam +1 17 +1 17

Asia/Africa +2 +10 103 7 +2 +10 110Total +7 +19 747 -2 -3 423 +6 +9 902 -4 -3 137 +7 +22 2.209

METRO GROUPMetro Cash & Carry Real Media-Saturn Galeria Kaufhof


FY Sales by Division and Country

€ million 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011Germany 5,302 5,152 8,441 8,304 9,087 9,266 3,251 3,107 48 35 2 6,130 25,865

Austria 793 792 1,078 1,083 1,871 1,875

Belgium 1,247 1,207 613 634 333 343 2,193 2,184

Denmark 237 234 2 237 236

France 3,900 3,996 597 233 4,497 4,229

Italy 1,834 1,797 2,524 2,327 4,358 4,124

Luxemburg 40 50 40 50

Netherlands 1,243 1,213 1,206 1,330 2,449 2,543

Portugal 419 391 150 134 569 525

Spain 1,311 1,292 1,793 1,626 3,104 2,918

Sweden 523 531 523 531

Switzerland 757 761 757 761

UK 928 883 928 883

Western Europe 11,912 11,805 9,283 8,712 333 343 21,528 20,859Bulgaria 416 382 416 382

Croatia 285 250 285 250

Czech Republic 1,162 1,148 1,162 1,148

Greece 352 325 240 204 593 529

Hungary 612 548 192 191 804 739

Kazachstan 37 109 37 109

Moldova 75 77 75 77

Poland 1,970 1,754 1,403 1,273 917 869 4,290 3,895

Romania 1,137 1,059 694 627 1,831 1,686

Russia 2,930 3,422 603 722 695 873 4,228 5,017

Serbia 198 208 198 208

Slovakia 428 417 428 417

Turkey 998 1,003 329 277 371 398 1,698 1,678

Ukraine 807 791 27 28 835 819

Eastern Europe 11,407 11,492 3,058 2,926 2,415 2,534 16,880 16,953China 1,304 1,535 9 92 238 228 1,551 1,854

Egypt 25 40 25 40

India 201 250 201 250

Japan 207 264 207 264

Morocco 194 0 194 0

Pakistan 128 150 128 150

Vietnam 416 466 416 466

Asia/Africa 2,474 2,706 9 92 238 228 2,720 3,025TOTAL 31,095 31,155 11,499 11,230 20,794 20,604 3,584 3,450 286 263 67,258 66,702

Metro Cash & Carry Real METRO GROUPOtherGaleria KaufhofMedia-Saturn

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