METRO AG

Quarterly Report • Aug 19, 2021

CONTENT

• 3 Summary
• 5 Overview
• 6 Interim Group management report
• 6 Earnings, financial and asset position of the group
• 9 METRO Segments
• 13 Outlook
• 14 Condensed interim financial report
• 14 Income statement
• 15 Balance sheet
• 17 Cash flow statement
• 19 Notes on the condensed interim financial report
• 19 Segment reporting
• 21 Group accounting principles and methods
• 22 Financial calendar, imprint and disclaimer

METRO WITH SIGNIFICANT GROWTH IN Q3 FOLLOWING HOSPITALITY RESTART – MARKET SHARES FURTHER EXPANDED

With the sale of the majority stake in METRO China and the hypermarket business completed in the financial year 2019/20, the differentiation of reporting into continuing and discontinued operations in accordance with IFRS 5 will no longer apply from the financial year 2020/21 onwards. The following presentations in the reporting year therefore relate to the group units that were reported as continuing operations in the previous year.

The sales and EBITDA outlook for the financial year 2020/21, which was published on 20 April 2021, was raised on 27 July 2021. This was due to the better-than-expected business development since the easing of restrictions. Dedicated operational measures to support the re-start of our customers resulted in continuous market share gains. The currency adjusted sales to HoReCa customers grew by 57% in Q3 2020/21, exceeded the pre-pandemic level for the first time in June and continued to develop positively in July.

The Management Board of METRO AG (METRO) has therefore decided to increase its outlook for sales and EBITDA for the financial year 2020/21 on 27 July 2021. While the high level of uncertainty and volatility regarding the further development of the pandemic remains, METRO now expects:

• Sales (both total sales and like-for-like) to decline by approximately -0.5% to -3.5% vs. previous year (previously: -3% to -6% below previous year)
• A development of EBITDA adjusted of €50 million to €-75 million to previous year (previously: decline by roughly €-50 million to €-175 million to previous year)

The outlook assumes stable exchange rates and no further adjustments to the portfolio. A partial re-introduction of restrictions is reflected with the lower end of the outlook corridor considering the still high level of uncertainty and volatility regarding the further development of the pandemic.

Q3:

Sales in local currency grew by 15.4%. Like-for-like sales increased by 15.0%. Reported sales grew by 12.2% to €6.2 billion

Adjusted EBITDA grew significantly to €310 million (Q3 2019/20: €175 million). In Q3 2020/21 €1 million transformation costs incurred (Q3 2019/20: €1 million). Earnings contributions from real estate transactions amounted to €16 million (Q3 2019/20: €2 million). EBITDA almost doubled to €325 million (Q3 2019/20: €176 million)

The profit or loss for the period attributable to METRO shareholders in Q3 2020/21 grew to €63 million; in Q3 2019/20 the profit or loss for the period in continuing operations amounted to €-140 million and in discontinued operations to €652 million (previous year includes transaction proceeds)

The earnings per share in Q3 2020/21 increased significantly to €0.17; in Q3 2019/20 earnings per share in continuing operations amounted to €-0.38 and in discontinued operations €1.80 (previous year includes transaction proceeds)

9M:

Sales in local currency declined by -3.5%. Like-for-like sales decreased by -3.7%. Reported sales declined by - 7.8% to €17.6 billion

Adjusted EBITDA amounted to €800 million (9M 2019/20: €834 million) and thereby currency adjusted €24 million or 3% above the previous year. All segments except Western Europe (excl. Germany) are at or above the previous year's level. In 9M 2020/21 €13 million transformation costs incurred (9M 2019/20: €46 million). Earnings contributions from real estate transactions amounted to €58 million (9M 2019/20: €3 million). EBITDA reached €845 million (9M 2019/20: €791 million)

The profit or loss for the period attributable to METRO shareholders in 9M 2020/21 reached €31 million; in 9M 2019/20 the profit or loss for the period in continuing operations amounted to €-135 million and in discontinued operations €526 million (previous year includes transaction proceeds)

The earnings per share in 9M 2020/21 reached €0.09; in 9M 2019/20 earnings per share in continuing operations amounted to €-0.37 and in discontinued operations €1.45 (previous year includes transaction proceeds)

Cash flow from operating activities (continuing operations) increased significantly to €670 million (9M 2019/20: €30 million cash inflow)

The net debt was reduced to €3.8 billion (30.6.2020: €4.4 billion)

OVERVIEW

9M/Q3 2020/21

million	M	M	Q	Q
Sales
EBITDA adjusted
Transformation costs
Earnings contributions from real estate transactions
EBITDA
EBIT			-
Earnings before taxes EBT	-		-
Profit or loss for the period from continuing operations	-		-
Earnings per share from continuing operations ()	-		-
Profit or loss for the period
Earnings per share ()

attributable to METRO shareholders also includes the result from discontinued operations including the transaction result

SALES, EARNINGS AND FINANCIAL POSITION

The first nine months of the FY 2020/21 were markedly impacted by the Covid-19 pandemic and the government measures in this context. In the course of Q3 2020/21, there was finally a trend change and a significantly improved business development. This is due, on the one hand, to the easing of the Covid-19 protective measures, which began gradually in May and became more comprehensive during the quarter. On the other hand, numerous measures were taken at country level to strengthen the operating business in the gastronomy and hotel business. These included the activation of existing customers and the acquisition of new ones, for example through "fresh start" discounts, payment term campaigns or special assortments. In addition, business with Traders was stable and business with SCO customers remained above pre-pandemic levels. It is important to note that the sales development for all customer groups was strongly influenced by the Covid-19 pandemic in the same quarter of the previous year. As a result, the basis for comparison was easier (HoReCa customers with government restrictions in the previous year) or more challenging (SCO customers were stockpiling in the previous year).

The development of METRO's individual segments has been affected by the Covid-19 pandemic to varying degrees. The degree depends on the composition of the customer groups as well as the duration and intensity of the restrictions in each country. Sales in the HoReCa customer group increased significantly again in Q3 2020/21 in the wake of the recovery in gastronomy and tourism. The progress made in combating the pandemic and the associated positive effects on public life and the business development of the METRO was particularly visible in countries with a high HoReCa sales share, and where government measures had previously been more stringent. Hence, in Western Europe (excl. Germany) (60% HoReCa sales share in FY 2019/20) sales were one third higher than in the previous year and also Eastern Europe (excl. Russia) and Asia showed significant sales growth. According to market data¹ Germany as well as some further strong HoReCa countries in Western Europe outperformed the HoReCa market. ²

Sales

In Q3 2020/21 sales in local currency grew by 15.4%. Like-for-like sales improved by 15.0%. METROs' reported sales increased by 12.2% to €6.2 billion but could not reach the pre-pandemic level (Q3 2018/19). The sales growth in the reporting quarter was driven in particular by Western Europe (excl. Germany) and Eastern Europe (excl. Russia), where sales increased significantly and steadily over the course of the quarter as gastronomy and tourism recovered. Q3 2020/21 was impacted with a negative calendar effect as a result of the Easter shift. In 9M 2020/21, sales in local currency declined by -3.5% and like-for-like sales by -3.7%. Due to negative currency developments, especially in Eastern Europe (excl. Russia), Russia and Asia reported sales declined by -7.8% to €17.6 billion.

Earnings

Business recovered quickly and significantly as a result of the easing of government-imposed measures in the context of the Covid-19 pandemic. In Q3 2020/21, adjusted earnings before depreciation and amortisation (EBITDA) increased to €310 million (Q3 2019/20: €175 million). Transformation cost of €1 million incurred (Q3 2019/20: €1 million). Earnings contributions from real estate transactions amounted to €16 million and resulted from a sale-and-lease-back transaction in Portugal (Q3 2019/20: €2 million). EBITDA reached €325 million (Q3 2019/20: €176 million).

npdgroup CREST Panel, NPD

In 9M 2020/21, EBITDA adjusted amounted to €800 million (9M 2019/20: €834 million). Negative exchange rate developments, especially of the Russian and Turkish currencies, contributed to the decline. One-time effects in the mid double-digit million euro range had a compensating effect especially in the Others segment as well as in Western Europe (excl. Germany) and Eastern Europe (excl. Russia). These effects mainly occurred in Q2 2020/21. Adjusted for currency effects, EBITDA amounted to €24 million or 3% above the previous year.

In 9M 2020/21, transformation costs of €13 million (9M 2019/20: €46 million) were incurred. Earnings contributions from real estate transactions amounted to €58 million (9M 2019/20: €3 million) and resulted mainly from the disposal of the last remaining real estate property of the hypermarket business, from the sale of an at-equity accounted investment in a store network in Germany and a sale-and-lease-back transaction in Portugal. EBITDA reached €845 million (9M 2019/20:€791 million).

METRO's depreciation and amortisation in Q3 2020/21 amounted to €199 million (Q3 2019/20: €197 million). In 9M 2020/21, depreciation and amortisation amounted to €603 million (9M 2019/20: €628 million). The decrease mainly results from goodwill impairment in the previous year.

The net financial result in 9M 2020/21 amounted to €-123 million (9M 2019/20: €-199 million). The other financial result mainly developed positively due to more stable exchange rates for Eastern European currencies and the Turkish lira, which had a more favourable effect on the valuation of foreign currency lease liabilities. The interest result improved mainly due to a decrease in interest expenses from leases.

Earnings before taxes in 9M 2020/21 amounted to €119 million (9M 2019/20: €-36 million). The tax expense of €84 million for 9M 2020/21 (9M 2019/20: €95 million) has been calculated taking into account the expected Group tax expense at the end of the financial year.

The profit or loss for the period attributable to METRO shareholders grew significantly in Q3 2020/21 to €63 million; in Q3 2019/20 the profit or loss for the period in continuing operations amounted to €-140 million and in discontinued operations to €652 million (previous year includes transaction proceeds). The profit or loss for the period attributable to METRO shareholders reached in 9M 2020/21 €31 million; in 9M 2019/20 the profit or loss for the period in continuing operations amounted to €-135 million and in discontinued operations €526 million (previous year includes transaction proceeds).

The earnings per share in Q3 2020/21 increased significantly to €0.17; in Q3 2019/20 earnings per share in continuing operations amounted to €-0.38 and in discontinued operations €1.80 (previous year includes transaction proceeds). The earnings per share in 9M 2020/21 reached €0.09; in 9M 2019/20 earnings per share in continuing operations amounted to €-0.37 and in discontinued operations €1.45 (previous year includes transaction proceeds).

Investments

METRO invested €471 million in 9M 2020/21 (9M 2019/20: €433 million). Adjusted for acquisitions (mainly the Portuguese food supplier Aviludo Group), isolated, country-specific Covid-19-related savings resulted in decreased investments.

Financing and net debt

The reported net debt, after netting cash and cash equivalents as well as financial investments with financial liabilities (incl. liabilities from leases), totalled €3.8 billion as of 30 June 2021 (30/6/2020: €4.4 billion). METRO has cash and cash equivalents of €1 billion as of 30 June 2021 (30/6/2020: €2 billion).

Cash flow

The operating activities in 9M 2020/21 resulted in cash inflow amounting to €670 million (9M 2019/20: €30 million cash inflow). The improvement is mainly due to the change in net working capital, which is mainly related to an increased purchasing volume in the wake of the reopening of the gastronomy. Cash flow from investing activities amounted to €-35 million (9M 2019/20: €-166 million) and relates to investments in property, plant and equipment, investment properties as well as intangible assets. In H1 2020/21, the acquisitions of Davigel Spain and Aviludo Group led to payments (after deduction of cash and cash equivalents obtained) of €-22 million. The disposals of subsidiaries relate to payments received in connection with the disposal of the last hypermarket business real estate property as well as the IT companies METRO-NOM and METRO SYSTEMS Romania, which were sold to the IT provider WIPRO. In addition, there was a further purchase price payment for METRO China in the amount of € 5 million. The divestments mainly include the sale of an at-equity investment in a store network in Germany.

Cash flow from financing activities totalled €-0.8 billion (9M 2019/20: €-0.1 billion). In 9M 2020/21, commercial paper amounting to €0.5 billion was issued under the existing commercial paper programme and €0.6 billion was repaid.

METRO SEGMENTS

METRO sales figures

	Sales ( million)		Change ()		Currency effects		Change (local currency)		Like-for-like (local currency)
	Q	Q	Q	Q	Q	Q	Q	Q	Q	Q
Total			-		-	-	-		-
Germany			-	-			-	-	-	-
Western Europe (excl Germany)			-				-		-
Russia			-	-	-	-		-		-
Eastern Europe (excl Russia)			-		-	-	-		-
Asia			-		-	-	-		-
Others			-	-	-	-	-	-	-	-

	Sales ( million)		Change ()		Currency effects		Change (local currency)		Like-for-like (local currency)
	M	M	M	M	M	M	M	M	M	M
Total			-	-	-	-	-	-	-	-
Germany			-	-			-	-	-	-
Western Europe (excl Germany)			-	-			-	-	-	-
Russia				-	-	-
Eastern Europe (excl Russia)				-	-	-
Asia			-	-	-	-	-		-	-
Others			-	-	-	-	-	-	-	-

In Germany sales in local currency decreased in Q3 2020/21 by -3.6% and like-for-like sales by -3.3%. Through the gradual reopening of the gastronomy, HoReCa sales improved in Q3 2020/21, but could not compensate for the SCO stock-up purchases in the previous year. Reported sales decreased by -3.7%. The HoReCa business has again outperformed the market. In 9M 2020/21, sales in local currency declined by –5.9%. Like-for-like sales decreased by -5.6%. This is mainly attributable to a significant decline in sales with HoReCa customers in the wake of the Covid-19 pandemic – especially in H1 2020/21. Reported sales declined by –5.9%.

Sales in local currency Western Europe (excl. Germany) in Q3 2020/21 increased significantly by 34.1% and likefor-like sales by 32.6%. Reported sales grew by 34.1%. It should be noted that the previous year's quarter was significantly impacted by government restrictions in the wake of the Covid-19 pandemic, while the current quarter benefited from the recovery in HoReCa sales. Spain and Pro à Pro recorded the largest sales increases with growth rates of more than 50%. Sales in Italy, Portugal and France were also higher than the previous year with double-digit growth rates. The HoReCa business in France, Spain and Italy has outperformed the market. Despite the significant recovery of the business development in Q3 2020/21, the sales development in local currency in 9M 2020/21 was at -7.6% and related to like-for-like sales at -8.1%. In France and Italy in particular, the government-imposed restrictions associated with the Covid-19 pandemic had a noticeable negative impact. Reported sales also decreased by -7.6% to €6.5 billion. However, this is largely attributable to H1 2020/21.

In Russia, sales in local currency in Q3 2020/21 were –1.1% and like-for-like sales were -0,8%, roughly in line with the prior year, which was boosted by SCO stock-up purchases. HoReCa Sales growth customers largely compensated for the decline in sales to Trader and SCO customers. The reported sales decreased by –11.2% due to currency effects. In 9M 2020/21 sales in local currency developed positively with 2.3%. Sales growth was driven by the HoReCa and Trader customer groups. Like-for-like sales grew by 2.6%. The reported sales decreased by –15.2% due to currency effects.

In Eastern Europe (excl. Russia), the operating business improved significantly in Q3 2020/21. Sales in local currency and like-for-like sales increased by 13.2%. Reported sales increased slightly lower by 8.3% due to currency effects. This growth is driven by the recovery in HoReCa sales, whereas in the same quarter last year government restrictions had a negative impact in the majority of countries. In 9M 2020/21, sales in local currency and like-for-like sales developed stable at the previous year's level at 0.6%. Ukraine, Romania and Turkey in particular developed positively in local currency. In Poland, the Czech Republic, Slovakia and Hungary, Covid-19 related restrictions had a particularly negative impact. Due to negative currency effects, especially in Turkey and Ukraine, reported sales were down by -6.7%.

Sales in local currency in Asia increased by 10.7% in Q3 2020/21 and like-for-like sales by 8.8%. Classic Fine Foods in particular benefited from the recovery in the hospitality sector. Reported sales only increased by 4.3% due to currency effects. Negative currency effects were particularly observable in India and in Japan. In 9M 2020/21 sales in local currency increased by 0.9%. Like-for-like sales decreased by -0.7%. Reported sales decreased by -7.2% due to currency effects.

Delivery sales in Q3 2020/21 increased significantly by 68% to €1.1 billion (Q3 2019/20: €0.6 billion) and reached a sales share of 17% (Q3 2019/20: 12%). In 9M 2020/21, delivery sales decreased by –5% to €2.7 billion (9M 2019/20: €2.9 billion) due to Covid-19 and reached a sales share of 15% (9M 2019/20: 15%). The decline is attributable to government-imposed restrictions on the hospitality industry, which represents the largest customer group with the delivery share in the METRO portfolio.

As of 30 June 2021, the store network comprised 679 locations. In Q3 2020/21, 1 location in Germany has been closed.

METRO key figures

	EBITDA adjusted			Transformation costs		Earnings contributions from real estate transactions		EBITDA
million	Q	Q	Change ()	Q	Q	Q	Q	Q	Q
Total
Germany
Western Europe (excl Germany)
Russia			-
Eastern Europe (excl Russia)
Asia	-	-						-	-
Others
Consolidation	-							-

	EBITDA adjusted			Transformation costs		Earnings contributions from real estate transactions		EBITDA
million	M	M	Change ()	M	M	M	M	M	M
Total			-
Germany
Western Europe (excl Germany)			-
Russia			-
Eastern Europe (excl Russia)			-
Asia
Others
Consolidation			-

In Germany adjusted EBITDA in Q3 2020/21 amounting to €31 million was in line with the previous year (Q3 2019/20: €31 million ). In 9M 2020/21, adjusted EBITDA increased to €108 million (9M 2019/20: €103 million). This is mainly the result of good margin development and rigorous cost management.

In Western Europe (excl. Germany) adjusted EBITDA in Q3 2020/21 rose to €133 million and improved significanly compared to the previous year (Q3 2019/20: €18 million). As a result of a sale and leaseback transaction in Portugal, earnings contributions from real estate transactions in Q3 2020/21 amounted to €16 million (Q3 2019/20: €0 million). In 9M 2020/21, adjusted EBITDA reached €216 million (9M 2019/20: €245 million). This was largely attributable to the Covid-19-related government restrictions and the resulting sales-driven EBITDA declines in H1 2020/21. The acquisition of Davigel Spain yielded positive one-time earnings in the mid single-digit euro million range. However, easing of the government measures set off the positive trend reversal described above in Q3 2020/21. In return, business performance recovered significantly.

In Russia adjusted EBITDA in Q3 2020/21 was €45 million (Q3 2019/20: €53 million). Adjusted for currency effects, adjusted EBITDA decreased by €–3 million. In 9M 2020/21, the adjusted EBITDA amounted to €146 million (9M 2019/20: €177 million). Adjusted for currency effects, adjusted EBITDA remained stable at the previous year's level (€–1 million).

In Eastern Europe (excl. Russia), adjusted EBITDA in Q3 2020/21 increased to €89 million (Q3 2019/20: €75 million). This was due to sales growth in the wake of the easing of government measures, which was reflected in an increase in results, especially in Romania and Bulgaria. Adjusted for exchange rate effects, EBITDA rose by €18 million. Adjusted EBITDA in 9M 2020/21 reached €246 million (9M 2019/20: €256 million). This change is mainly due to the Covid -19-related decline in sales, especially in the Czech Republic, Slovakia and Poland, and to negative exchange rate effects in Turkey. By contrast, the settlement of a legal dispute made a positive contribution in the mid-single-digit millions of euros range. Adjusted for currency effects, adjusted EBITDA in Eastern Europe (excl. Russia) increased by €11 million.

In Asia, adjusted EBITDA in Q3 2020/21 was in line with the previous year at €–5 million (Q3 2019/20: €-6 million. In 9M 2020/21, adjusted EBITDA increased to €7 million (9M 2019/20: €5 million), slightly higher than the previous year. Earnings from the share in METRO China's partnership with Wumei contributed positively in a low single-digit euro million amount. Adjusted for currency effects, adjusted EBITDA increased by €2 million.

In Q3 2020/21, adjusted EBITDA in the Others segment reached €16 million (Q3 2019/20: €6 million). Adjusted EBITDA was at €78 million in 9M 2020/21 (9M 2019/20: €48 million). Significant elements of the improvement compared to the previous year are an improved result at METRO Logistics and licensing revenues from the partnership with Wumei. Furthermore, savings from the restructuring carried out in the previous year had a positive effect on personnel expenses. In addition, a one-off income of around €30 million supported the earnings development. This income resulted from the termination of arbitration proceedings, the reassessment of transaction-related provisions and the final purchase price valuation of the METRO China transaction. Transformation costs of €3 million (9M 2019/20: €46 million) were incurred. Earnings contributions from real estate transactions amounted to €42 million (9M 2019/20: €0 million) and resulted mainly from the disposal of the last remaining real estate property of the hypermarket business and the sale of an at-equity investment in a retail location portfolio in Germany.

OUTLOOK

Outlook for METRO

The sales and EBITDA outlook for the financial year 2020/21, which was published on 20 April 2021, was raised on 27 July 2021. This was due to the better-than-expected business development since the easing of restrictions. Dedicated operational measures to support the re-start of our customers resulted in continuous market share gains. The currency adjusted sales to HoReCa customers grew by 57% in Q3 2020/21, exceeded the pre-pandemic level for the first time in June and continued to develop positively in July.

METRO now expects:

• Sales (both total sales and like-for-like) to decline by approximately -0.5% to -3.5% vs. previous year (previously: -3% to -6% below previous year)
• A development of EBITDA adjusted of €50 million to €-75 million to previous year (previously: decline by roughly €-50 million to €-175 million to previous year)

The outlook assumes stable exchange rates and no further adjustments to the portfolio. A partial re-introduction of restrictions is reflected with the lower end of the outlook corridor considering the still high level of uncertainty and volatility regarding the further development of the pandemic.

For the financial year, regions with a high share of hospitality customers, like the Western Europe (excl. Germany) segment, experience the largest impact of government restrictions on sales and earnings. Positive sales developments are expected in the segments Russia, Eastern Europe (excl. Russia) and Asia. On the earnings side, a heterogeneous development in the segments is expected, with the group result being determined in particular by the further sales-dependent development in Western Europe (excl. Germany).

INCOME STATEMENT

million	M	M	Q	Q
Sales Revenues
Cost of sales	-	-	-	-
Gross profit on sales
Other operating income
Selling expenses	-	-	-	-
General administrative expenses	-	-	-	-
Other operating expenses	-	-	-	-
Earnings from impairment of financial assets	-	-	-
Earnings share of operating companies recognised at equity
Earnings before interest and taxes (EBIT)			-
Earnings share of non-operating companies recognised at equity
Other investment result
Interest income
Interest expenses	-	-	-	-
Other financial result	-
Net financial result	-	-	-	-
Earnings before taxes EBT	-		-
Income taxes	-	-	-	-
Profit or loss for the period from continuing operations	-		-
Profit or loss for the period from discontinued operations
Profit or loss from the period
Profit or loss for the period attributable to non-controlling interests				-
from continuing operations				-
from discontinued operations
Profit or loss for the period attributable to the shareholders of METRO AG
from continuing operations	-		-
from discontinued operations
Earnings per share in (basic diluted)
from continuing operations	-		-
from discontinued operations

BALANCE SHEET

ASSETS

million
Noncurrent assets
Goodwill
Other intangible assets
Property plant and equipment
Investment properties
Financial assets
Investments accounted for using the equity method
Miscellaneous financial assets
Miscellaneous non-financial assets
Deferred tax assets
Current assets
Inventories
Trade receivables
Financial assets
Miscellaneous financial assets
Miscellaneous non-financial assets
Entitlements to income tax refunds
Cash and cash equivalents
Assets held for sale

Adjustment of previous year in connection with IFRS (Leases)

EQUITY AND LIABILITIES

million
Equity
Share capital
Capital reserve
Reserves retained from earnings	-	-	-
Equity before non-controlling interests
Non-controlling interests
Noncurrent liabilities
Provisions for post-employment benefits plans and similar obligations
Other provisions
Financial liabilities
Miscellaneous financial liabilities
Other non-financial liabilities
Deferred tax liabilities
Current liabilities
Trade liabilities
Provisions
Financial liabilities
Miscellaneous financial liabilities
Other non-financial liabilities
Income tax liabilities
Liabilities related to assets held for sale

Adjustment of previous year in connection with IFRS (Leases)

CASH FLOW STATEMENT

million	M	M
EBIT
Depreciationamortisationimpairment lossesreversal of impairment losses of fixed assets excl financial investments
Change in provisions for pensions and other provisions		-
Change in net working capital	-	-
Paid (-) received income taxes	-
Reclassification of gains (–) losses () from the disposal of fixed assets	-	-
Lease payments received
Others	-	-
Cash flow from operating activities of continuing operations
Cash flow from operating activities of discontinued operations
Cash flow from operating activities
Acquisition of subsidiaries		-
Investments in property plant and equipment and in investment property (excluding right of-use assets)	-	-
Other investments	-	-
Investments in monetary assets	-	-
Disposals of subsidiaries
Divestments
Disposal of monetary assets
Cash flow from investing activities of continuing operations	-	-
Cash flow from investing activities of discontinued operations
Cash flow from investing activities		-
Dividends paid	-	-
to METRO AG shareholders	-	-
to other shareholders	-
Proceeds from borrowings
Redemption of borrowings	-	-
Lease payments	-	-
Interest paid	-	-
Interest received
Other financing activities
Cash flow from financing activities of continuing operations	-	-
Cash flow from financing activities of discontinued operations	-
Cash flow from financing activities	-	-
Total cash flows		-
Currency effects on cash and cash equivalents	-	-
Total change in cash and cash equivalents		-
Total cash and cash equivalents as of October
less cash and cash equivalents reported in assets in accordance with IFRS

Cash and cash equivalents as of October
Total cash and cash equivalents as of June
less cash and cash equivalents reported in assets in accordance with IFRS
Cash and cash equivalents as of June
Vorjahresanpassung aufgrund von IFRS (Leasingverhältnisse)

NOTES ON THE CONDENSED INTERIM FINANCIAL REPORT

SEGMENT REPORTING 9M 2020/21

OPERATING SEGMENTS

	Germany		Western Europe (excl Germany)		Russia		Eastern Europe (excl Russia)		Asia
million	M	M	M	M	M	M	M	M	M	M
External sales (net)
Adjusted EBITDA
Transformation costs
Earnings contributions from real estate transactions
EBITDA
EBIT									-	-
Investments

OPERATING SEGMENTS

	Others		Consolidation		METRO continuing operations
million	M	M	M	M	M	M
External sales (net)
Adjusted EBITDA
Transformation costs
Earnings contributions from real estate transactions
EBITDA
EBIT	-	-
Investments

OPERATING SEGMENTS

	Germany		Western Europe (excl Germany)		Russia		Eastern Europe (excl Russia) Asia
million	Q	Q	Q	Q	Q	Q	Q	Q	Q	Q
External sales (net)
Adjusted EBITDA									-	-
Transformation costs
Earnings contributions from real estate transactions
EBITDA									-	-
EBIT			-						-	-
Investments

OPERATING SEGMENTS

	Others		Consolidation		METRO continuing operations
million	Q	Q	Q	Q	Q	Q
External sales (net)
Adjusted EBITDA			-
Transformation costs
Earnings contributions from real estate transactions
EBITDA			-
EBIT	-	-	-		-
Investments

NOTES

Accounting principles

The income statement, the balance sheets as of 30 September 2020 and 30 June 2021 and the cash flow statement were prepared in accordance with IFRS as adopted by the EU. The income statement, balance sheet and cash flow statement were prepared in accordance with IAS 34 (Interim Financial Reporting). Generally, the same accounting policies were applied as in the consolidated financial statements as of 30 September 2020.

In June 2021, the IFRS Interpretations Committee decided that, when determining the net realisable value of inventories, the estimated costs necessary to make the sale shall not be limited to only those that are incremental. The impact of this decision on METRO's financial statements is currently being analysed.

Covid-19

The reporting period was markedly impacted by the government measures associated with the Covid-19 pandemic, whereby the individual METRO segments were affected to varying degrees.

In order to prepare this condensed interim financial report while taking into account the changes in the corporate environment, it was necessary to make estimates and assumptions that had an impact on the disclosure and carrying amounts of the assets and liabilities in the balance sheet as well as income and expenses reported. Estimates and underlying assumptions with major effects have been made particularly in the following areas:

• indicator-based impairment testing of assets with and without finite useful lives including goodwill,
• recoverability of receivables in particular trade receivables and receivables due from suppliers,
• measurement of inventories,
• determination of the tax rate for the integral approach pursuant to IAS 34,
• calculation of provisions for performance-based remuneration components.

The estimates and assumptions used for the interim financial statements were reviewed regularly - changes were taken into account as soon as they became known. All assumptions and estimates are based on the circumstances and judgements at the reporting date, taking into account the knowledge gained by the Management Board up to the preparation of the interim financial statements on 27 July 2021. METRO believes that the assumptions underlying these interim financial statements are a fair representation of the current situation. Although the estimates and assumptions were made with great care, the actual values may deviate from them in individual cases, especially taking into account the Covid-19-related uncertainties.

For information on significant judgements that have the most significant effect on the amounts recognised in these interim financial statements, please refer to the relevant disclosures in the Annual Report 2019/20.

FINANCIAL CALENDAR

Trading statement financial year 2020/21	Wednesday	20 October 2021	6:30 PM
Annual Report 2020/21	Wednesday	15 December 2021	6:30 PM
Capital Markets Day 2022	Wednesday	26 January 2022

All time specifications are CET

IMPRINT

METRO AG		Investor Relations
Metro-Straße 1	Telephone	+49 (211) 6886-1280
40235 Düsseldorf, Germany	Fax	+49 (211) 6886-73-3759
	Email	investorrelations@metro.de
PO Box 230361
40089 Düsseldorf, Germany	Creditor Relations
	Telephone	+49 (211) 6886-1904
http://www.metroag.de/en	Fax	+49 (211) 6886-1916
	Email	creditorrelations@metro.de
Publication date
28 July 2021, 6:30 PM	Corporate communications
	Telephone	+49 (211) 6886-4252
	Fax	+49 (211) 6886-2001
	Email	presse@metro.de

Visit the website of METRO AG at www.metroag.de with extensive information and reports on METRO AG.

DISCLAIMER

This quarterly statement contains forward-looking statements. They are based on specific assumptions and expectations at the time of publication of this disclosure. Consequently, forward-looking statements involve risks and uncertainties and may differ materially from actual results. In particular, a large number of the risks and uncertainties associated with forward-looking statements are determined by factors that are not controlled by METRO and cannot be reliably estimated today. They include future market conditions and economic developments, the behaviour of other market participants, the achievement of expected synergy effects as well as statutory and political decisions.

Furthermore, METRO does not feel obligated to release revisions to these forward-looking statements to reflect events or circumstances that have occurred after the release date of these materials.