Copyright © 2009 METRO Cash & Carry PakistanMember of METRO Group Sustain & Succeed Best Practice Day 2009 David Boner, Operations Director Lahore, November 19 th, 2009

Member of METRO GroupMETRO Cash & Carry PakistanPage 2 Corporate Movie METRO Group

Member of METRO GroupMETRO Cash & Carry PakistanPage 3 1 Introduction of Metro Group 2 METRO Cash & Carry Pakistan 3 Global Recession & Shape Four Defining Business Model Pillars of MCC Pakistan 5 Supply Chain Efficiencies & Cold Chain Development 6 WEI JI 7 Conclusion

Member of METRO GroupMETRO Cash & Carry PakistanPage 4 Cross-divisional Service Companies Cash & Carry Food Retail Department Stores Department Stores Nonfood Specialty Nonfood Specialty Sales Division of METRO Group The METRO Group is one of the Top 5 retailing groups worldwide with sales of € 68 billion in The company has a headcount of some 290,000 employees and operates about 2,200 outlets in 32 countries.

Member of METRO GroupMETRO Cash & Carry PakistanPage 5 METRO Cash & Carry is internationally leading in B2B Self- Service Wholesaling Headquarters: Düsseldorf, Germany Over 655 locations in 30 countries More than 100,000 employees Sales of € 33.1 billion in 2008, (over 80 percent generated outside of Germany) 5.1 million m² total sales area Over 2 million customers everyday

Member of METRO GroupMETRO Cash & Carry PakistanPage 6 METRO’s main customer categories Local producers Key target groups End-consumers Importers CBUTraderHoReCaInstitutions

Member of METRO GroupMETRO Cash & Carry PakistanPage Lahore Oct 2007 Islamabad April 2008 Lahore 3 & Faisalabad Jan 2009 Karachi Mar 2009 Five METRO wholesale centers in 18 months. Opened three wholesale centers in first Qtr of BUT…. METRO Cash and Carry entered Pakistan in 2007 with the aim to serve as a value driver for professional customers, suppliers and economy. METRO Cash & Carry Pakistan

Member of METRO GroupMETRO Cash & Carry PakistanPage 8 Global Recession hit the business world… And life won’t get easier Major markets went under severe economic crisis METRO also felt the impact as our professional customers were effected

Member of METRO GroupMETRO Cash & Carry PakistanPage 9 The Big Question Was……. HOW TO…. Excel In Tough Times ?????

Member of METRO GroupMETRO Cash & Carry PakistanPage 10

Member of METRO GroupMETRO Cash & Carry PakistanPage 11 Cost + Value

Member of METRO GroupMETRO Cash & Carry PakistanPage 12 Four defining Business Model Pillars of MCC Pakistan METRO Cash & Carry Pakistan’s Local Adaptation

Member of METRO GroupMETRO Cash & Carry PakistanPage 13 Direct Sourcing Increased Efficiency Cost Reduction Adds Value to the Supply Chain

Member of METRO GroupMETRO Cash & Carry PakistanPage 14 Implementing a modern cold supply chain (F&V)

Member of METRO GroupMETRO Cash & Carry PakistanPage 15 Implementing a modern cold supply chain (Meat)  Average shelf life increased to 5 days  Reduction in rejection rate  Improved quality  Food grade material for packaging

Member of METRO GroupMETRO Cash & Carry PakistanPage 16 Implementing a modern cold supply chain (Fish)  Average shelf life increased to 10 days  Reduced post harvest losses  Value addition  Food grade material for packaging

Member of METRO GroupMETRO Cash & Carry PakistanPage 17 Wei Ji Crisis Opportunity

Member of METRO GroupMETRO Cash & Carry PakistanPage 18 Conclusion: The global economic crisis gave us a chance to excel because it is only in tough times that you feel pressure. This pressure leads us to think as a team and provided us an opportunity to prepare our selves for devising & implement successful futuristic strategies.

Member of METRO GroupMETRO Cash & Carry PakistanPage 19 Questions???