The Management Board of METRO AG (METRO) has decided to increase its outlook for sales and EBITDA for the financial year 2021/22. Business in H1 2021/22 has developed better than expected, especially in the segment West (excl. Germany). This is significantly driven by rising inflation but also a strong Horeca recovery as the 'sCore' strategy execution progresses well and Covid restrictions have been lifted. At the same time, the war in Ukraine has a strong negative impact on the business development in Ukraine and negatively impacts the outlook for METRO Russia for FY 2021/22. In Russia, the sanctions are expected to result in a declining consumer sentiment and challenged product availability in the second half of the year.

METRO now expects:

• Sales to grow by approximately 9% to 15% vs. previous year (previously: 3% to 7%)
• EBITDA adjusted to grow slightly to moderately vs. previous year (previously: on previous year level)

The outlook assumes stable exchange rates and no further adjustments to the portfolio. Further escalation of the war and/or further sanctions could lead to additional negative impact on the business, particularly in Ukraine and Russia.

Sales in the segments West and East are expected to grow over-proportionately. Germany is expected to grow below the group range. For Russia, a decline compared to the previous year is expected. The development of EBITDA adjusted across the segments is expected to follow the sales development except for the segment East. Due to war-related stock write-offs and operational deterioration in Ukraine, the segment East is expected to decrease against the previous year. The expectations for the segment Others are unchanged; it is expected to be noticeably below the level of the previous year.

According to preliminary and unaudited figures for Q2 2021/22

• Sales (constant currency) grew by 26% compared to previous year
• EBITDA adjusted grew to EUR 157 million (EUR 114 million in PY)
• EPS declines to EUR -0.78 (EUR -0.36 in PY), driven by the war-related impacts of more than EUR -200m (impairments and FX-related negative effects in the net financial result, predominantly in Russia)

In the cumulative H1 2021/22 guidance view (constant currency and portfolio-adjusted), this results in sales growth at constant currency of 24%. EBITDA adjusted grew by EUR 191 million compared to previous year. METRO continues the execution of its sCore strategy and reconfirms its mid-term ambition of 3-5% sales and EBITDA CAGR in the period 2022-2025.

The H1 2021/22 report will be published as scheduled on May 11, 2022 at 6:30pm, followed by an analyst conference call on May 12, 2022 at 8:45am.

Definitions of EBITDA and other performance indicators can be found in the Glossary of the Annual Report 2020/21 - Consolidated financial statement from page 290 on. The Annual Report 2020/21 may be accessed under https://investors.metroag.de/~/assets/common-newsroom/documents/financial-statements/2020-21-metro-annual-report_en.pdf?dl=1.