METRO AG Completes Sale of Metro India to Reliance Retail Ventures Limited

• The divestment strengthens METRO’s financial position and becomes landmark in portfolio rationalisation
• Equity valuation of approx. €0.3 billion, resulting in transaction EBITDA gain of approx. €150 million, EPS gain of approx. €0.3 and cash proceeds of €0.3 billion, to be booked in Q3 2022/23
• Use of cash proceeds will follow sCore capital allocation frame
• METRO confirms sales and EBITDA adjusted outlook for FY 2022/23 and mid-term ambitions

METRO AG has announced today that it has successfully completed the sale of its Indian operations, including all 31 wholesale stores and the entire real estate portfolio (6 storeoccupied properties), to Reliance Retail Ventures Limited ("RRVL"). With an equity valuation of approx. €0.3 billion, METRO achieved a transaction EBITDA gain of approx. €150 million, EPS gain of approx. €0.3 and cash proceeds of €0.3 billion. This implies an EV/sales multiple of 0.6x based on sales of the financial year 2021/22 and considering lease rental and other related liabilities of €150 million. METRO confirms sales and EBITDA adjusted outlook for FY 2022/23 and mid-term ambitions.

“With today’s successful closing of the sale, METRO India will open a new chapter in its journey. We are convinced that Reliance as the new owner, with its local expertise, will successfully lead the business into the future. I’d like to sincerely thank our Indian employees once again for their hard work and commitment over the past 20 years and wish them the very best in this new chapter”, said Dr Steffen Greubel, CEO of METRO AG.

METRO will continue to build on its growth momentum and take further steps to achieve its mid- and long-term ambitions. In addition to the reduction in net debt already realised in Q1 through the reclassification of the Indian business as “Asset held for sale” (€0.15 billion), cash proceeds of €0.3 billion will further reduce METRO’s net debt (the total effect on net debt is therefore more than €0.4 billion) and will support METRO’s sCore strategy implementation.

METRO India will complement Reliance Retail’s retail network in the future. All METRO India stores will continue to operate under the METRO brand during an agreed transition period. For METRO employees and METRO customers, there will be no noticeable changes for the time being.