LEADERSHIP FOR GROWTH GOSH, April 2016 | © METRO AG 2016 MADE FOR SUCCESS: METRO GROUP AT A GLANCE. § One of the world‘s leading retail 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: hypermarkets § 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 Germany, 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. § Austria § Germany § Luxembourg § Russia § Switzerland ▪ 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 § Turkey § Belgium ▪ Real 293 ▪ METRO C&C 3 § Serbia ▪ METRO C&C 29 ▪ MAKRO C&C 15 § Greece § Netherlands ▪ METRO C&C 10 ▪ Media-Saturn 42 ▪ Media-Saturn 23 ▪ Media-Saturn 10 ▪ METRO C&C 17 § Slovakia § Ukraine § Bulgaria § Hungary ▪ Media-Saturn 49 ▪ METRO C&C 6 ▪ METRO C&C 32 ▪ METRO C&C 11 ▪ METRO C&C 13 § Pakistan § Spain § China ▪ Media-Saturn 22 ▪ METRO C&C 9 ▪ MAKRO C&C 37 ▪ METRO C&C 82 § India § Poland ▪ Media-Saturn 77 § Croatia ▪ METRO C&C 19 ▪ MAKRO C&C 41 § Sweden ▪ METRO C&C 8 § Italy ▪ Media-Saturn 80 ▪ Media-Saturn 27 § Czech Republic ▪ METRO C&C 48 § Portugal ▪ MAKRO C&C 13 ▪ Media-Saturn 110 ▪ MAKRO C&C 10 § France § 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, Indonesia, Japan, Korea, Macau, Malaysia, the Philippines, Singapore, Thailand, the United Arab Emirates, the United Kingdom 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-