METRO AG METRO AG Made to TradeMade to Trade

ContentsContents

Introduction of CompanyCompany PortfolioSupply Chain Mgt.LogisticsCompany Locations

Introduction of CompanyIntroduction of Company

Metro is the world’s 4Metro is the world’s 4thth largest retailing largest retailing Pioneered by Dr. Otto Beisheim, first C&C store in Pioneered by Dr. Otto Beisheim, first C&C store in

Germany in 1964 Germany in 1964 300,000 employees from 150 nations are working 300,000 employees from 150 nations are working

at over 2,200 outlets in 32 countries in Europe, at over 2,200 outlets in 32 countries in Europe, Africa and AsiaAfrica and Asia

Annual Turnover is Annual Turnover is € 68 bn (plus 5.8 percent)€ 68 bn (plus 5.8 percent)

PORTFOLIO STRONG BRANDS SERVICESPORTFOLIO STRONG BRANDS SERVICES

Metro Cash & Carry, the world’s market Metro Cash & Carry, the world’s market leader in cash & carryleader in cash & carry

Real hypermarketsReal hypermarkets Media Market and Saturn, Europe’s leader in Media Market and Saturn, Europe’s leader in

consumer electronic retailingconsumer electronic retailing Galeria Kaufhof, the system leader in the Galeria Kaufhof, the system leader in the

department store businessdepartment store business

Supply Chain ManagementSupply Chain Management

Central Warehousing and distribution to the stores

Break-Bulk-Cross-Docking

Procurement logistics (German Logistics Award-2002)

ProcurementProcurement

Lower mileage per ton transportedLower mileage per ton transported Almost fully utilized trucksAlmost fully utilized trucks Minimization of empty runsMinimization of empty runs Distinctly reduced idle timesDistinctly reduced idle times

MGB (Metro Group Buying)MGB (Metro Group Buying)

Organizes and manages merchandise Organizes and manages merchandise procurementprocurement

1,450 staff1,450 staff Total purchasing volume in 2003 Total purchasing volume in 2003 € 44 € 44

bnbn

Metro Group ITMetro Group IT

Managing group wise data and Managing group wise data and information flowsinformation flows

Merchandise managementMerchandise management Data warehousing systems Data warehousing systems IT infrastructureIT infrastructure

Future Store InitiativeFuture Store Initiative

Developing new retailing conceptsDeveloping new retailing concepts Testing of new technologyTesting of new technology E.g. Central system for tracking of EggsE.g. Central system for tracking of Eggs Self CheckoutsSelf Checkouts Future CheckoutsFuture Checkouts Information TerminalsInformation Terminals Personnel Shopping AssistancePersonnel Shopping Assistance

RFIDRFID Main areas of application include Main areas of application include

LogisticsLogistics Merchandise Stock PilingMerchandise Stock Piling Individual customer serviceIndividual customer service

EPC (Electronic product code) stored on a small EPC (Electronic product code) stored on a small chip can be read by RFIDchip can be read by RFID

Merchandise management systemMerchandise management system Optimum traceabilityOptimum traceability Complete documentation from the ManufacturerComplete documentation from the Manufacturer StoreStore

Metro LinkMetro Link Optimizes communication and co-operation Optimizes communication and co-operation

efforts wit suppliersefforts wit suppliers Developed during fiscal year 2005Developed during fiscal year 2005 Uniform internet PlatformUniform internet Platform ECR (Efficient consumer response strategy)ECR (Efficient consumer response strategy) Offer suppliers programs to simplify Offer suppliers programs to simplify

business process business process E.g. Access to Metro DatabaseE.g. Access to Metro Database

Co-operation with SuppliersCo-operation with Suppliers

Association for technical co-operation Association for technical co-operation and Metro developing standards for and Metro developing standards for meat, fruits and vegetablesmeat, fruits and vegetables

Objectives (PPP)Objectives (PPP) Training programmers in India & Training programmers in India &

PakistanPakistan Russian Agriculture (Meat Products)Russian Agriculture (Meat Products) GLOBAL GAPGLOBAL GAP

LogisticsLogistics

METRO Group focuses on efficient METRO Group focuses on efficient and environmentally friendly and environmentally friendly logistics: Eco Performance Award logistics: Eco Performance Award 20072007

Employee training and Employee training and environmentally friendly trucksenvironmentally friendly trucks

Using alternative means of transportUsing alternative means of transport From the Ship to the TracksFrom the Ship to the Tracks

Company LocationsCompany LocationsAustriaAustria

BelgiumBelgium

BulgariaBulgaria

ChinaChina

CroatiaCroatia

Czech Rep.Czech Rep.

DenmarkDenmark

FranceFrance

GermanyGermany

GreeceGreece

HungaryHungary

IndiaIndia

ItalyItaly

JapanJapan

LuxembourgLuxembourg

MoldovaMoldova

MoroccoNetherlandsPakistanPolandPortugalRomaniaRussiaSerbiaSlovakiaSpainSwedenSwitzerlandTurkeyUkraineUnited KingdomVietnam