LEADERSHIP FOR GROWTH GOSH, April 2016 | © METRO AG 2016 MADE FOR SUCCESS: METRO GROUP AT A GLANCE.

§ One of the world‘s leading and wholesale companies

§ Successful stock-listed company § Presence in over 2,000 locations in 29 countries § More than 220,000 employees from 171 nations § Three sales lines with leading positions ▪ METRO Cash & Carry: cash-and-carry wholesale ▪ Media-Saturn: consumer electronics stores ▪ Real: § All sales lines are closely linked to online shops § Geared towards sustainable positive earnings development

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 1 SALES AND EARNINGS DEVELOPMENTS 2014/15.

Change in % compared with the previous year’s period 2013/14 2014/15 in local € mn. € mn. in € currencies

Sales METRO GROUP 59,937 59,219 –1.2 0.5

Germany 22,558 22,490 –0.3 –0.3

international 37,379 36,728 –1.7 1.0

Western 18,902 19,090 1.0 0.7 Europe1

Eastern Europe 14,755 13,318 –9.7 1.7

Asia/Africa 3,722 4,319 16.1 0.5

EBIT2,3 METRO GROUP 1,531 1,511 –1.3 –

Status: 30 September 2015, 1Excluding , 2Before special items , 3Adjustment of previous year

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 2 EMPLOYEES AND LOCATIONS.

Selling space Employees1 Locations2 in 1,000 m²

METRO GROUP3 223,462 2,057 10,563

Germany 83,949 819 4,341

Western 52,372 605 2,641 Europe4

Eastern Europe 64,333 510 2,771

Asia/Africa 22,803 119 809

Status: 30 September 2015

1By headcount as of closing date 2As of the closing date 31 December 2015 3Including five employees from Boston Trade Office, USA 4Excluding Germany

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 3 METRO GROUP1: 2,057 LOCATIONS IN 29 COUNTRIES. METRO Cash & Carry 750 locations; Media-Saturn 1,010 locations; Real 293 locations.

§ § Germany § § Russia § ▪ METRO C&C2 12 ▪ METRO C&C 107 ▪ Media-Saturn 2 ▪ METRO C&C 87 ▪ Media-Saturn 27 ▪ Media-Saturn 48 ▪ Media-Saturn 419 § Moldova ▪ Media-Saturn 65 § § ▪ Real 293 ▪ METRO C&C 3 § Serbia ▪ METRO C&C 29 ▪ MAKRO C&C 15 § § ▪ METRO C&C 10 ▪ Media-Saturn 42 ▪ Media-Saturn 23 ▪ Media-Saturn 10 ▪ METRO C&C 17 § Slovakia § Ukraine § Bulgaria § ▪ Media-Saturn 49 ▪ METRO C&C 6 ▪ METRO C&C 32 ▪ METRO C&C 11 ▪ METRO C&C 13 § § § ▪ Media-Saturn 22 ▪ METRO C&C 9 ▪ MAKRO C&C 37 ▪ METRO C&C 82 § India § ▪ Media-Saturn 77 § Croatia ▪ METRO C&C 19 ▪ MAKRO C&C 41 § Sweden ▪ METRO C&C 8 § ▪ Media-Saturn 80 ▪ Media-Saturn 27 § ▪ METRO C&C 48 § ▪ MAKRO C&C 13 ▪ Media-Saturn 110 ▪ MAKRO C&C 10 § § Japan ▪ Media-Saturn 9 ▪ METRO C&C 94 ▪ METRO C&C 9 § Romania § Kazakhstan ▪ METRO C&C 31 ▪ METRO C&C 7

Status: 31 December 2015 1Including four locations in the segment Other 2The METRO Cash & Carry segment also includes the business of the Classic Fine Foods group in China (including Hong Kong), France, , Japan, Korea, Macau, , the , Singapore, , the United Arab Emirates, the and Vietnam. The locations and countries of the Classic Fine Foods group are not shown in the table as they relate to distribution centres and warehouses whereas this table only covers sales locations.

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 4 GROUP STRUCTURE – PROFILES AT A GLANCE.

METRO AG

Europe’s No. 1 A leading consumer electronics One of the leading international player retailer; one of the operators largest discount in cash-and-carry of hypermarkets providers in wholesale trade in Germany German-language online sites

Status: 1 October 2015 Companies

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 5 STRATEGIC FOCAL POINTS OF METRO GROUP.

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 6 CORPORATE RESPONSIBILITY. In our core business, we identify spheres of action that are relevant from an economic perspective and are also significant for the environment and society as a whole: § Employees

▪ Provide an attractive, fair and safe working environment

▪ Appreciate the individuality of employees, foster diversity and strengthen personal responsibility

§ Procurement | Production | Processing

▪ Corporate and product-related buying policy for sustainable acquisition

▪ Consideration of specific sustainability criteria and monitoring of defined standards by an independent third party

▪ Proximity to suppliers through concentrated and regional buying and acquisition

§ Transport | Warehousing | Stores

▪ Procure resources and use them efficiently in own operations

▪ Sustainable facility management

▪ Reduce greenhouse gas emissions by 20 per cent until 2020 compared to 2011

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 7 CORPORATE RESPONSIBILITY.

§ Customer

▪ High transparency along the value chain through the traceability of goods

▪ Provide high-quality products with social and environmental credentials and offer sustainable alternatives

▪ Provide information to customers and interact with them to support and encourage responsible consumption

§ Waste Disposal

▪ Avoid waste, reuse or recycle resources and advise customers on the best way to dispose

§ Social Commitment

▪ Foster intercultural dialogue, lend support to our locations and their local communities, and provide assistance directly to those in need

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 8 OUR SUSTAINABILITY VISION: METRO GROUP. WE OFFER QUALITY OF LIFE.

§ For our customers by providing them with safe quality products and services where they live, around the world, constantly improving our processes.

And with products that are made, processed and recycled in a socially responsible, environmentally sound, resource-conserving manner. This lets us

secure our future.

§ For our employees by at all times respecting, protecting and helping them grow professionally, and by building trusted relationships with them. This

lets us create an attractive working environment.

§ For all who work for us by doing business fairly and responsibly and providing good living and working conditions. This lets us demonstrate

responsibility in the supply chain.

§ For society by working on solutions to global challenges in a relationship of mutual trust with our stakeholders. This is how we contribute to sustainable

development.

§ For the environment by protecting the environment, conserving natural resources and minimising our effect on the climate. This lets us help ensure a

sound footing for the retailing of tomorrow.

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 9 Basics

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 10 Basis of relation employee – METRO GROUP Demand:

n Healthy combination of the needs of a profit driven company with those of a responsible employer Challenge:

n Ongoing restructuring process

Question:

n How to create a new spirit in the management and in the personnel

Tool:

n Realization of our intentions and demands by combining business principles with the possibilities offered by the Leadership of Growth Workshop developed by Oxford Leadership Academy

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 11 OXFORD LEADERSHIP ACADEMY (OLA).

n Leadership consultancy specialized in values-driven leadership development, strategy execution and culture change

n Improvement of the social responsibility and ethical commitments of business leaders. Credo:

„We believe business leaders must make choices and decisions that reflect a sense of responsibility for the whole, not only their own narrow interests […]”

Core values:

Principled pragmatism Collaborative partnership Courageous integrity Spirit of service

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 12 MCC Business Principles – from the company to the individual

Growth needs values. People as well as business. Helping people to grow themselves will help to grow business

Leadership for Growth

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 13 OLA: LEADERSHIP FOR GROWTH – FACTS & EXPECTATIONS.

n Leadership model, leaders serve as role

model n Translate this approach to business life by developing strategic n Reflection of reciprocal relation between organization, team and individual searching targets for optimizing the engagement for alignment between them by development and accountability

of a an adult-to-adult relation (team, n Transfer strategic targets to an company, private) implementation plan resulting in

n Identify final barriers holding people back to programs, projects and/or products achieve what they could and would achieve

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 14 LEADING FROM THE INSIDE-OUT TO ALIGN STRATEGY AND CULTURE

BUILDING A LEVEL COMMUNITY Create a Metro spirit by COMMUNITY connecting, collaborating

LEADING THE ORGANISATIONAL LEVEL CULTURE ORGANISATION From Adult-Child to Adult- Adult engagement LEADING RELATIONSHIPS & TEAMS LEVEL The conversation IS the TEAM relationship LEADING THE SELF

LEVEL Leadership is Personal INDIVIDUAL It’s all about Relationships

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 15 FRAMEWORK OF THE LEADERSHIP FOR GROWTH WORKSHOP Step 1: Facts • Establishing context & case for change incl. Life lines, S-curves, Iceberg model, Engagement results Step 2: Insights • Reviewing the business Life Line - What must we build on and what must change • Personal Life Line - Personal leadership patterns – strengths & weaknesses Steps 3 & 4: Purpose & Values • Why we do what we do • Defining purpose & intention • Clarity of priorities & values, creating a sense of belonging & affiliation Step 5: Vision: Aligning Culture & Strategy • Creating a culture of Security & Trust • Define the Vision KRA’s, Build trust Step 6: Barriers

© Oxford Leadership Academy • Identifying blocks that compromise us. Root causes • How to release the energy & create engagement of people? Steps 7, 8, 9: Goals, Strategies & Action • Responsibility & accountability for change, Choices, Crucial Conversations, Iconic Moves, Vital Behaviours, Not to do list • Developing solutions Step 10: Implementation • Agree plans & measures, Develop Personal Commitments METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 16 MCC Business Principles – from the individual to the company

Self responsibility, self leadership, self confidence, engagement, transparency, respect will help to bring life to principles

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 17 THE PROCESS OF LFG

§ Kick-off LfG 1 end 2012: Start of the roll out first wave of leadership workshop Training of managers by OLA Managers train their teams Q1 2014: 95% employees within METRO Cash & Carry trained Topic: reflection of self between the poles of private life and business life

§ Mid 2014 Start of the second wave; LfG2 The aim of the LfG 2 workshop is to strengthen leadership capabilities to drive alignment, engagement and accountability throughout the organization and to foster cross-functional collaboration. Topic: Building up competencies to realize the outcome of LfG 1 within the teams Q4 2015: 70% management positions trained

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 18 HEALTH MANAGEMENT AND LEADERSHIP FOR GROWTH

Mental wellbeing = creativity = engagement = motivation = increased productivity Individual Team Organization

n Self management Focus n Adult-to-adult relation n Grounding people in their

on living in the present n Clear visions for the future core values helps to

moment n Goals that everyone can necessary change. n Adult-to-adult relations relate to. n Commitment of staff

n Identifying barriers people by alignment of personal principles with company’s principles

Business Principles and Leadership for Growth

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 19 THANKS FOR YOUR ATTENTION

METRO GROUP Peter Wiesenekker International Labour Relations and Health & Safety Management Metro-Straße 1 40235 Düsseldorf Germany Phone: +49 (211) 6886-1408 [email protected]

METRO GROUP, International Labour Relations and H&S Classification level: Public April 2016 | © METRO AG 2016 20