Consumer Goods - Presentation by Olaf Koch, Chairman of the Management Board of Metro Group at the Axel Springer NOAH Conference Berlin 2016, Tempodrom on the 9th of June 2016.

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FROM TRANSACTION TO SOLUTION
Olaf Koch
NOAH Conference
Berlin, 9 June 2016

2. 10 - 11 November 22 - 23 June
Save The Date
www.noah-conference.com

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THE GROUP IN NUMBERS
Sales €60bn
EBIT €1.5bn
Stores >2,000
Countries >30
Employees ~230,000

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HISTORIC SUCCESS FACTORS FOR RETAIL
Purchasing competence
Advertising
Scaling / Synergies
Standardisation / Optimisation
Internationalisation

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THE TYPICAL BUSINESS MODEL LIFECYCLE
Initial phase Scaling phase Maturation phase Reinitiation
Realignment
Divestment

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WHERE WE NEED TO GO!
„We have a customer base!
What can we do for them?“
„We have the products – let‘s
find some customers, to
whom we can sell them.“

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AN INTERNATIONAL WHOLESALE & FOOD SPECIALIST GROUP
Leading international Wholesale Group
Clear focus on target groups – localized
strategy per country
Strengthening of solution mind set
Accelerating presence in Foodservice
Distribution
Our people are the most important success
factor

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page 6
OUR GOAL IS…
…TO CONTRIBUTE TO THE SUCCESS OF OUR CUSTOMERS!

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Champion for
Independent
Business
PURPOSE
Purposeful.

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 Strengthening of solution mind set
 Improve Employee Engagement
THE CORE OF OUR BRAND: CHAMPION FOR INDEPENDENT BUSINESS
 „We help independent entrepreneurs to grow and win.“
 Focus on target groups – localized strategy
 Engage in communities
 Increase relevance

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Tailored offering
through food competence,
inspiring assortments
Convenient experience
through locations, omnichannel,
logistic solutions
Consistent and
highly reliable e.g.
availability, stable
prices
Great value for money
through assortment, value,
quality, service
WE UNDERSTAND WHAT CUSTOMERS NEED AND LIKE
“METRO is my
PARTNER"
What loyal customers say and what they should say about us
Rational Emotional
Surprise & Inspiration
through digital solutions along
value chain
Care & relationships
through passionate and
qualified customer service
Community building
and engagement through
networking, experience
sharing, advocacy
Capability building
through trainings, product support,
partnerships, consulting

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DIGITALISATION IS OPENING UP NEW OPPORTUNITIES FOR OUR
CUSTOMERS
Digital
Communication
Online
Reservations
New Services
Increase in Efficiency
Social Media
Product Innovation
Sustainability

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IS IT A SIZABLE OPPORTUNITY?

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Combining great ideas
with strong
business building,
marketing and
sector expertise
TECHSTARS METRO ACCELERATOR

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WHAT WE BRING TO THE TABLE
Strong HoReCa expertise
Customer access
Powerful sales team
International network of experts
„PARTNERSHIP“
Access to industry partners

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HOW WE WANT TO CONTRIBUTE
Next HoReCa focused Accelerator with Techstars
applications opened April 12
Direct Investments in advanced concepts
Establish platforms with focus on Food Innovation & HoReCa
Coming Up: METRO „Digital Club“
& others

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AN EXAMPLE – CULINARY AGENTS (I)
The Vision:
the networking platform enabling talent and
supporting businesses in the hospitality industry
The mission:
is to connect, develop and educate the world’s
existing and aspiring hospitality professionals.
Focusing on the problem of talent sourcing first.

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AN EXAMPLE – CULINARY AGENTS (II)
Become the leading professional network for the Hospitality Community
Support of European roll-out by METRO
Italy & France to launched in November 2015
Pre-launch piloting with key hospitality schools and opinion leaders
Partnership agreement with Guide Michelin (USA, France, Italy)

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IMPRESSIONS FROM THE FRENCH LAUNCH

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OUR LATEST INVESTMENT: ORDERBIRD
 16.5m EUR joint investment into orderbird by
METRO GROUP and Digital+ Partners
 Orderbird is the leading provider of iPad
based POS systems for restaurants in the
German-speaking region
 Investment underscores our commitment to
digitalisation in the hospitality sector

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ATTENTION TO THE SECTOR IS GROWING …
http://techcrunch.com/2016/04/26/the-restaurant-os/?mc_cid=819f1d2632&mc_eid=00c7d2d95a

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… NUMBER OF APPLICATIONS AS WELL
The number of
users however
is still very
limited

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BENEFITS & REQUIREMENTS FOR DIGITAL HORECA
Consumer Experience
More Visits
Better Profitability
Relationship
Intuitiveness
Simplicity

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#1 EUROPEAN CONSUMER ELECTRONICS PLATFORM
Leading consumer electronics brands and
formats
Distribution partner-of-choice
Ongoing transformation into a fully
integrated multi-channel proposition
7 consecutive quarters LfL sales growth with
fast online growth
Full control through effective governance

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THE STRATEGIC OBJECTIVES OF THE MEDIA-SATURN GROUP
Mission
Vision
Strategy
The partner, day-to-day companion and navigator for
consumers in the fascinating yet sometimes confusing
digital world
The leading provider of consumer electronics and
corresponding services in Europe with a sustainable
and profitable market position in selected countries
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

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WHAT DOES THAT MEAN?
Service Business Omnichannel Innovation
New Formats Modern MarketingHigher Efficiency New Business Units

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INNOVATION SPOTLIGHT: TECH ACCELERATOR
The IT helpdesk for home users: Remote support service for PC / laptop users (via hotline / shared screen)
All electronic products on one platform: Supports users to keep an overview of their CE products and fixed-
term contracts; also offers access to product information and operating manuals and notifies about expiry of
warranties/contracts
First aid for smartphones: Online platform offering tutorials, spare-parts & local repair services for defective
mobile phones
The family doctor for technology: Certified technicians provide IT services at home for all sorts of devices
and IT problems
 Access to innovation, talent & entrepreneurs - low risk investments for Media-Saturn
 Superb feedback from press and startup-community; Media-Saturn recognized as relevant digital investor
 Start-ups “invest“ in Media-Saturn ecosystem, four companies with strong service focus
 First pilot cooperations in selected Media-Saturn stores initiated, registration phase for second accelerator kicked off

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INGREDIENTS REQUIRED FOR FUTURE SUCCESS
FOCUS
ENTREPRENEURSHIP
FLEXIBILITY AND AGILITY
SPEED
GROWTH

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THE LOGICAL NEXT STEP IN THE TRANSFORMATION OF METRO GROUP:
THE CREATION OF TWO DISTINCT, PURE-PLAY SECTOR LEADERS
 Independent, dedicated management teams and governance
 Improved focus, flexibility, operational efficiency and transparency
 Greater optionality for each company to pursue independent partnerships and M&A
Creating value for our shareholders, customers, employees and business partners

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FROM TRANSACTION TO SOLUTION
Olaf Koch
NOAH Conference
Berlin, 9 June 2016

33. Focus on Leading European Internet companies
Covering over 400 companies across 25
online verticals, a broad range of over 500
investors as well as 100+ online-focused
corporates
Deep understanding of industry dynamics
Ability to add value beyond banking advice
Facilitates overall process and minimizes
management distraction
NOAH Advisors is globally well connected
and has direct access to virtually all key
players in the industry
Knowledge of and strong relationships
with potential buyers’ key decision makers
Proactively finds and unlocks attractive
investment opportunities for leading
investors
Annual NOAH Conference in its 8th year
Over 40 years of combined relevant M&A
experience
Routine execution of M&A and financing
transactions with sizes of several billion
euros
22 successfully completed NOAH Advisors
transactions underline successful transfer of
M&A competencies to the Internet sector
Entrepreneurial mind-set, focused on growing the
business and establishing a reputation for
excellence
Ability to deliver top results in short time frames
Highly success-based compensation structures
align interests of clients and NOAH Advisors,
and demonstrate conviction to deliver top results
Creative deal solutions
September 2015
December 2014
September 2014
October 2014
May 2014
February 2013 May 2012
Sale of a 70% stake in
to
Exclusive Financial Advisor to
Drushim and its Shareholders
Sale of 100% of
for $800m to
Exclusive Financial Advisor to
Fotolia and the Selling Shareholders
Sale of 100% of
for €80m to
Exclusive Financial Advisor to
Trovit and its Shareholders
Sale of controlling stake in
to
Exclusive Financial Advisor to
Facile.it and its Shareholders
sold 100% of
for $228m to a joint venture between
Exclusive Financial Advisor to Yad2
and its Shareholders
Growth equity investment from
for a 30% stake alongside Softonic’s Founders
and Angel Investors at a valuation of €275m
Exclusive Financial Advisor to
Softonic and its shareholders
150 million growth equity investment from
for a 50% stake alongside Fotolia’s Founders and
Additional $150 million senior debt financing
Total $300 million investment
Financial Advisor to Fotolia and its Shareholders
Selected Completed
NOAH Transactions
Unique Industry Know-How
Unmatched Network and Relationships
Strong Investment Banking Competence
Full Commitment - We Are Entrepreneurs!
EUROPE’S LEADING INTERNET CORPORATE FINANCE BOUTIQUE
May 2016
Investment in
by
Exclusive Financial Advisor to
10Bis and its Shareholders
®