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© METRO AG 2010

Strengthening customer orientation and improving operational efficiency with newtechnologies

Credit Analyst DayMETRO GROUP7 June 2010

Dr. Gerd WolframHead of CIO-OfficeMETRO AG

© METRO AG 20101

The Challenges Faced by Tomorrow’s Retail Sector

Legal framework

Environmental protection and sustainability

Demography

Convenience

e-commerce

Health & wellness

Trend towardsbetter service

New forms ofcommunication

Real-time transparency

Externalinfluences

Industrytrends

Consumertrends

© METRO AG 20102

Innovation

“To be the first and the most effective in making change by introducing something new that adds sustainable

differentiated value to customers”

© METRO AG 20103

METRO GROUP Future Store Initiative

Projects Activities

real,- Future Store

Galeria KaufhofMETRO Group RFID Innovation Center

European EPC Competence Center

R & D Field Tests Benefit

Innovations

RFID roll-out

Communicate

Modern Retail Concepts&

Innovative Technologies

© METRO AG 20104

METRO Group Future Store Initiative

Retail TechnologiesRFID

© METRO AG 20105

Radio Frequency Identification (RFID):Functionality of the EPC

3

Head

er

Barcode

0000000123456

Serial numberGTIN

EPC

© METRO AG 20106

The Key: Unique identification of products

Enabled by global, consistent and user-driven standards

Providing an accurate virtual link betweenproduction, distribution and the sales floor

Creating more efficient supply chains and amore integrated retail value chain

Uniquely identifiable merchandise will enhance existing processes in retailing and logistics

© METRO AG 20107

With our intelligent RFID infrastructure we have the tools to manage goods flow efficiently

Efficient Data Capture:EAN/UPC, DataBar, RFID

Electronic Data Exchange:EDI, GDSN, EPCIS

Harmonised Identification:GTIN, GLN, GRAI, EPC

© METRO AG 20108

Our Strategy: RFID on ....

Pallet level

Item level

Case level

© METRO AG 201010

RFID roll-out for incoming pallets

© METRO AG 201011

Basic efficiency gains based on RFID

15% time reduction for the truck unloading process

50% time reduction for unloading control and verification of delivery

Significant reduction of shipping mistakes and resulting compensation claims

© METRO AG 201012

Web-based real-time visibility…

Pallet tracking tool enables:

Real-time visibility on entire goods flow

Visibility on pallet level

Real time monitoring and managing of loading processes at the distribution center

© METRO AG 201013

… based on an intelligent infrastructure

RFID reads Other data

Trac

king

an

d Tr

acin

g

EPCIS Events and other data

Capture Interface

Query Interface

EPCIS RepositoryReports Alerts

Supplier Distribution center Store

Back room Sales floor

…

…

Shippingarea

GoodsReceiving

Shippingarea

821 543

6

Business intelligence

Use

of i

dent

ifica

tion

and

read

er in

fras

truc

ture

Direct Store Delivery

© METRO AG 201014

Manage promotions efficiently

Promotions have a 23% share in the total sales volumeof our real,- hypermarkets in Germany

54% sales uplift if display is in place in time

Support of sale of initial placement products

Missing displays in promotion period lead to decrease in sales of up to 89% (Source: Nielsen/Kraft)

© METRO AG 201015

Tracking promotion displays

Thursday, 16th April 2009

Real,- store employee moves the display through the RFID Goods Receiving Gate

Data (RFID):SGTINurn:epc:id:sgtin:7622300.013199.1234

Time Stamp16th April 2009 11:43

Saturday, 18th April 2009

Real,- store employee moves the display on the Sales Floor in Tönisvorst


Time Stamp18th April 2009 19:43 p.m.

Friday, 10th April 2009

real,- Tönisvorst employee orders 1 Milka Display for Promotion in CW 17

Data (EDIFACT):GTIN7622300131999

Quantity1

Store ILN4330942086760

Expected Delivery Date16th April 2009

Wednesday, 15th April 2009

Kraft is shipping the display associated with an SGTIN to real,-


Time Stamp15th April 2009 08:43

Goods ReceivingORDERORDERShipmentGoods Receiving Shipment

Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su

Promotionstart

Promotionend

Setup

XX X X

© METRO AG 201016

End-to-end supply chain transparency

Serialised promotions are linked to master data, CM-data, EDI-data and RFID readers

Transparency based on tracking of each individual display

Success rate measurable:

„At the right time,

in the right quality,

at the right place?“

© METRO AG 201017

ShipmentORDER

Display is not on the sales floor on Monday morning. In-time alert allows to move the display to the sales floor directly.

ALERT! !

Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su

Promotionstart

Promotionend

Goods Receiving Setup

Alert capabilities, example “Late Setup”

© METRO AG 201018

Responding to customer demands in real-time

© METRO AG 201019

Tracking fresh products in-store

Production Quality checkFresh meat delivery

Inventory insights

Product availability

Intelligent Freezer

Packaging / EPC database

© METRO AG 201020

Critical management information

© METRO AG 201021

Better product availability and fewer writedowns

Significantly improved shelf availability

¼ less writedownsdue to more precise demand

forecasting and real-time sales intelligence

© METRO AG 201022

RFID along the entire supply chain

LoadingStorage

Production

LoadingIncoming order

Storage

Shelf managementShelving

Inventory managementIncoming merchandise

Outgoing merchandiseOrder pickingReserve area

Precise verificationIncoming merchandise

Delivery notification

Manufacturer Supplier Store/outletDistributionwarehouse

© METRO AG 201023

RFID/EPC business benefit balance sheet

Increasingefficiency

Increasingvisibility

New consumerservices

Goodsshipping

Better data quality and accuracy

Reducedout-of-shelf

Goodsreveiving

Warehouseprocesses

Item-level(Meat/Fashion)

Promotiontracking

© METRO AG 201026

The customer as the focus of innovation

Store Fittings

Service & Concepts

Assortment

Convenient shopping

Shopping Experience

Technology & Organi-sation

Customer

© METRO AG 201027

real,- Future Store in Tönisvorst

General Data

Sales floor

Food

Non Food

8.598 m2

4.485 m2

4.113 m2

Concessionaires 924 m2

Initial Opening 01.04.1975

Reconstruction 09.06.2005

Opening Future Store 28.05.2008

Number of employees 190

Parking area 500

Number of concessionaires 17

© METRO AG 201028

Overview main innovations

1

23

45

6

78

Mobile Shopping1

ConvenienceExperienceInformation

Sports Department2

Fish Market4

Butcher shop of tomorrow5

Beauty & More6

Wines & spirits world7

Checkout Area8

Fresh Food & Convenience3

9 Innovation Guides

9

Let‘s have a closer look

10 Multimedia Terminal

10

© METRO AG 201029

Shopping with the MSA

Download promotion information

Create shopping list

Orientation in the store

Scan items

Product information

Check out & collect Payback points

© METRO AG 201030

METRO GROUP Shopping Assistant Evolution

1. Future Store real,- Future Store: Mobile Shopping Evolution

real,- App(iPhoneOS)

real,- Mobile Shopping List

(Symbian)

METROphone(iPhoneOS)

real,- Mobile Shopping List (Java)

Mobile Webshop App(iPhoneOS)

MEA: Mobile Shopping Assistant

(Symbian)

PSA: Personal Shopping Assistant

Pilot Roll-out Roll-outRoll-out

soon2008 2009 20102003

© METRO AG 201033

Two years of the real,- Future Store

94 % of customers would recommend the real,- Future Store

Three-quarters of MSA users rate the applications as very good or good

Sales up by a double-digit percentage over the previous year

Customers voted the Fresh Food & Convenience department the top feature in the store

© METRO AG 201034

The real,- Future Store – benefits for customer

Personalized service

Positive customer experience

Convenience and faster checkout

More information and better services

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