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CECONOMY AG

Earnings Release Feb 21, 2017

75_10-q_2017-02-21_3c725887-f285-4493-8ff6-df23c863fd66.pdf

Earnings Release

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3 Overview
3 Sales, earnings and financial position
5 Sales lines
5 METRO Cash & Carry
6 Media-Saturn
7 Real
7 Others
8 Outlook
9 Store network
10 Reconciliation of special items
11 Special items
12 Income statement
13 Balance sheet
14 Cash flow statement
15 Segment reporting
16 Financial calendar and imprint

METRO GROUP with stable sales and EBIT development

Sales: -0.6%

Like-for-like sales on the same level as the previous year

EBIT reaches €733 million (Q1 2015/16: €1,240 million including income from the sale of METRO Cash & Carry Vietnam)

EBIT before special items: €821 million (Q1 2015/16: €828 million)

EPS before special items: €1.17 (Q1 2015/16: €1.12)

Net debt stands at €0.1 billion

Guidance confirmed for financial year 2016/17

METRO Cash & Carry Sales: -0.3% due to portfolio and currency effects (in local currency: -0.1%)

Like-for-like sales up 0.7%

Delivery sales increased by 16.5%; 12.7% of total sales

EBIT before special items totals €431 million (Q1 2015/16: €458 million)

Media-Saturn

Sales at previous year's level (in local currency: +0.3%)

Like-for-like sales match previous year's level

Online sales exceed 10% of total sales for the first time

EBIT before special items increases to €312 million (Q1 2015/16: €309 million)

Real

Sales: -4.0% due partly to closures compared with the previous year's quarter

Like-for-like sales eased by 1.7%

EBIT before special items: €71 million (Q1 2015/16: €83 million)

OVERVIEW

Q1 2016/17

€ million Q1 2015/16 Q1 2016/17 Change
Sales 17,090 16,986 -0.6%
Germany 6,809 6,690 -1.8%
International 10,281 10,296 0.1%
International share of sales 60.2% 60.6%
EBITDA1 1,048 1,055 0.7%
EBIT 1,240 733 -40.9%
EBIT1 828 821 -0.8%
Earnings before taxes (EBT) 1.106 680 6.1%
Earnings before taxes (EBT)1 724 769 6.1%
Profit or loss for the period2 549 200 -63.7%
Profit or loss for the period1, 2 367 381 3.8%
Earnings per share (€) 1.68 0.61 -63.7%
Earnings per share (€)1, 2 1.12 1.17 3.8%
Investments 337 142 -57.8%
Stores3 2,057 2,069 0.6%

1Before special items

2Profit or loss for the period attributable to the shareholders of METRO AG 3As of the closing date 31 December

Sales, earnings and financial position

Sales

METRO GROUP achieved a slight increase in like-for-like sales of 0.1% in Q1 2016/17. This was due to positive development at METRO Cash & Carry. Like-for-like sales at Media-Saturn were on the same level as the previous year while sales at Real declined. METRO GROUP sales in local currency declined by 0.4%. While the Russian rouble strengthened against the euro for the first time in quite a while, currencies in other countries, particularly in Turkey, trended downwards. Overall, this translated into slightly negative currency effects for METRO GROUP, with group sales down by 0.6% to €17.0 billion (Q1 2015/16: €17.1 billion). Adjusted for portfolio effects, sales came in only slightly below previous year's level.

1.
2. 3. 4.
5.
€ million
Q1 2015/16
Q1 2016/17
Total sales in € (as reported)
17,090
16,986
Total sales in local currency
17,056
16,986
Sales of stores that were not part of the
like-for-like panel in Q1 2016/17
630
543
Like-for-like sales in local currency
16,426
16,443

Management system related performance indicators

METRO GROUP is managed on the basis of performance indicators that are determined in accordance with IFRS (International Financial Reporting Standards) requirements. In addition, the group uses alternative performance indicators such as like-for-like sales growth in local currency, EBIT before special items, EBITDA before special items and net debt. For more details on the performance indicators used in group management, see METRO GROUP's Annual Report 2015/16, pages 54-55 and the footnotes to the tables on pages 102-103.

Earnings

In Q1 2016/17, EBIT at METRO GROUP amounted to €733 million (Q1 2015/16: €1,240 million). This decline is primarily due to the fact that the previous year's figure includes income of €427 million from the sale of METRO Cash & Carry Vietnam. EBIT before special items amounted to €821 million (Q1 2015/16: €828 million). This decline is largely due to earnings developments at METRO Cash & Carry. EBIT was supported by positive currency effects of €5 million.

The net financial result improved markedly from €-134 million to €-53 million in Q1 2016/17. The interest result improved substantially to -€49 million as a result of lower indebtedness and lower interest rates (Q1 2015/16: €-63 million). The other financial result improved as well and, at €-5 million, was only slightly negative (Q1 2015/16: €-74 million).

In Q1 2016/17, earnings before taxes amounted to €680 million (Q1 2015/16: €1,106 million). Before special items, earnings before taxes rose to €769 million (Q1 2015/16: €724 million).

Reported tax expenses of €450 million (Q1 2015/16: €509 million) are based on a group tax rate of 66.2% (Q1 2015/16: 46.0%). Tax expenses before special items amounted to €345 million (Q1 2015/16: €307 million). This corresponds to a tax rate of 44.8% (Q1 2015/16: 42.4%).

The calculation is based on the so-called integral approach whereby the reported tax expenses correspond to the expected tax ratio as of the end of the financial year. The comparable high reported tax rate in Q1 2016/17 resulted mainly by the expected special items in the current financial year which will lead to a tax relief only to a less extent.

In Q1 2016/17, earnings per share amounted to €0.61 (Q1 2015/16: €1.68). Adjusted for special items, earnings per share stood at €1.17 (Q1 2015/16: €1.12).

Financial position

Net debt, after netting cash and cash equivalents as well as financial investments with financial liabilities (including finance leases), was very low and unchanged from the previous year's figure at €0.1 billion on 31 December 2016.

In Q1 2016/17, cash inflow from operating activities amounted to €2.6 billion (Q1 2015/16: €3.1 billion). The decrease results from a pension-related one-time cash-in last year as well as a net working capital deterioration.

Cash flow from investing activities totalled €-0.7 billion (Q1 2015/16: €-0.6 billion).

Cash flow from financing activities showed outflows of €0.1 billion (Q1 2015/16: outflow of €2.1 billion).

Sales lines

METRO Cash & Carry

Sales (€ million) Change (€) Currency effects Change (local currency) Like-for-like
(local currency)
Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17
Total 8,037 8,015 -2.0% -0.3% -2.3% -0.2% 0.4% -0.1% 0.2% 0.7%
Horeca 3,801 3,785 2.7% -0.4% -0.8% -0.5% 3.5% 0.1% 1.5% -1.2%
Multispecialists 3,345 3,472 -3.5% 3.8% -3.9% 0.9% 0.3% 2.9% -1.9% 2.2%
Traders 767 748 -2.1% -2.4% -5.5% -3.1% 3.4% 0.7% 3.4% 3.1%
Others 124 10

Like-for-like sales of METRO Cash & Carry increased by 0.7% during Q1 2016/17, meaning that the positive quarterly sales trend has now continued uninterrupted for more than three years. Sales in local currency declined slightly by 0.1%. Reported sales dropped by 0.3% to €8.0 billion. However, it should be noted that the previous year's sales figure still included sales of METRO Cash & Carry's Vietnamese business, which has since been sold. Adjusted for this portfolio effect, sales rose compared with the previous year. In addition, while the Russian rouble strengthened, currency developments in other countries such as Turkey had a negative effect on sales.

METRO Cash & Carry's delivery sales continued to develop positively, with sales rising by 16.5% to €1.0 billion. As a result, delivery sales accounted for 12.7% of total sales.

Like-for-like sales in the Horeca segment decreased by 1.2%. However, sales increased by 0.1% in local currency. Reported sales decreased by 0.4%. In Germany as biggest Horeca country, sales declined due to the continued transformation and the challenging market environment. In contrast, like-for-like sales in Turkey and Portugal developed very positively.

Like-for-like sales in the Multispecialists segment increased by 2.2%. Measured in local currency, sales rose by 2.9%. Reported sales increased even by 3.8%. Especially China, India and Pakistan showed a very positive development. In Russia, like-for-like sales increased in spite of intense price competition. Reported sales rose markedly – also supported by positive currency effects. Meanwhile, the negative sales trend continued in Belgium, the Netherlands and Austria.

Like-for-like sales in the Trader segment rose by 3.1%. All countries despite Poland contributed to this development. Measured in local currency, sales increased by 0.7%. Conversely, reported sales declined by 2.4%.

€ million
Q1 2015/16
Q1 2016/17 Change
EBIT
877
405 -53.9%
EBIT before special items
458
431 -6.0%
Investments
105
48 -54.1%

In Q1 2016/17, EBIT amounted to €405 million (Q1 2015/16: €877 million). The previous year's figure included the sale of METRO Cash & Carry Vietnam as a special item. EBIT before

special items amounted to €431 million (Q1 2015/16: €458 million). The decline was primarily due to investments in price reductions especially in Russia.

Media-Saturn

Sales (€ million) Change (€) Currency effects Change (local currency) Like-for-like
(local currency)
Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17
Total 6,889 6,893 0.2% 0.0% -0.9% -0.3% 1.1% 0.3% 0.4% 0.0%
Germany 3,291 3,293 3.2% 0.1% 0.0% 0.0% 3.2% 0.1% 2.8% -0.6%
Western Europe
(excl. Germany)
2,758 2,734 2.6% -0.9% 0.9% -0.2% 1.7% -0.6% 0.3% -0.9%
Eastern Europe 840 865 -15.8% 3.0% -7.8% -1.6% -8.0% 4.5% -8.1% 5.4%

Like-for-like sales of Media-Saturn matched the previous year's level in Q1 2016/17. Sales in local currency rose by 0.3%. At €6.9 billion, reported sales also remained unchanged from the previous year.

Following robust developments in October and November, sales in December were impacted by the longer Christmas sales period. Above all, early purchases (on so-called Black Friday) and positive follow-on effects during the first week of January impacted the Christmas business.

Overall, positive growth impulses from the smartphones, white goods and TV product groups as well as a strong increase in Services & Solutions sales were roughly compensated by declines in the entertainment, photo and IT hardware product categories.

Although Redcoon ended its business activities in five countries, online generated sales rose by more than 25% to €0.7 billion (Q1 2015/16: €0.6 billion). In terms of the multi-channel business of the Media Markt and Saturn brands, online sales even increased by more than 40%. For the first time, Media-Saturn generated more than 10% of its sales online (sales share: 10.5% versus 8.3% in Q1 2015/16).

The Services & Solutions area developed positively with doubledigit sales growth, driven mostly by strong demand for repair and installation services as well as guarantee extensions.

In Germany, like-for-like sales declined slightly by 0.6% in Q1 2016/17, due largely to the above-mentioned follow-on effects combined with a value-added tax campaign at Saturn at the beginning of January. Reported sales matched the previous year's level.

Like-for-like sales in Western Europe retreated by 0.9%. Sales in local currency dropped by 0.6%. Reported sales fell by 0.9%. While like-for-like sales developed positively in the Netherlands, Spain and Austria, sales declined in Switzerland and Belgium, in particular.

Like-for-like sales in Eastern Europe increased markedly by 5.4%, due mostly to very positive developments in Turkey. Sales in Eastern Europe rose by 4.5% in local currency. However, negative currency developments in Turkey weighed on sales, causing reported sales in Eastern Europe to increase by just 3.0%.

€ million
Q1 2015/16
Q1 2016/17 Change
EBIT
301
318 5.4%
EBIT before special items
309
312 1.2%
Investments
64
55 -13.5%

In Q1 2016/17, EBIT rose from €301 million to €318 million. However, this figure includes special items of €-5 million (Q1 2015/16: €7 million). EBIT before special items climbed from €309 million to €312 million.

Real

Sales (€ million) Change (€) Like-for-like
Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17
Germany 2,144 2,058 -3.9% -4.0% -1.6% -1.7%

Real's like-for-like sales declined by 1.7% during the Christmas quarter. Due partly to store closures, reported sales retreated by 4.0% to €2.1 billion compared with the previous year's quarter.

Following a subdued start to the Christmas quarter, sales stabilised in December as non-food sales, in particular, developed positively. Food sales were impacted negatively by intensified competition. Online sales increased markedly by 33% to €29 million.

The November opening of the new Markthalle Krefeld, a ground-breaking, market-style store concept with special culinary offerings, generated positive feedback and markedly boosted footfall.

€ million
Q1 2015/16
Q1 2016/17 Change
EBIT
84
18 -78.1%
EBIT before special items
83
71 -14.0%
Investments
143
13 -91.0%

In Q1 2016/17, EBIT amounted to €18 million (Q1 2015/16: €84 million). This includes special items, in particular for the reorganisation and restructuring of the administrative departments totalling €53 million (Q1 2015/16: €-1 million). In the foreseeable future, the central functions are to be consolidated at the

office location in Düsseldorf. EBIT before special items amounted to €71 million (Q1 2015/16: €83 million). The lower EBIT figure is primarily due to the decline in sales.

Others

€ million
Q1 2015/16
Q1 2016/17 Change
Sales
19
20 3.0%
EBIT
-19
-11 44.8%
EBIT before special items
-19
4
Investments
25
26 4.4%

The Others segment comprises, among others, METRO AG as the management holding company of METRO GROUP, the procurement organisation in Hong Kong, which also operates on behalf of third parties, as well as logistics services and real estate activities of METRO PROPERTIES, which are not attributed to any sales lines (that is speciality stores, warehouses, head offices, etc.).

In Q1 2016/17, sales in the Others segment totalled €20 million (Q1 2015/16: €19 million). Sales include, among other things,

the four remaining Real stores in Romania and commissions from the third-party business operated by METRO GROUP's Hong Kong-based procurement organisation.

EBIT totalled €-11 million in Q1 2016/17 (Q1 2015/16: €-19 million). Special items totalling €14 million (Q1 2015/16: €0 million) related to one-offs in connection with the demerger of METRO GROUP. EBIT before special items amounted to €4 million (Q1 2015/16: €-19 million). The distinct improvement was largely driven by a singular real estate transaction.

Events after the quarter-end closing

The acquisition of the French food service distribution specialist Pro à Pro was closed on 1 February 2017.

Outlook

The outlook is based on the current group structure and adjusted for currency effects. In addition, it is based on the assumption of a continuously complex geopolitical situation.

The outlook will be adjusted if the planned demerger of the group into two independent companies with a clear focus on the wholesale and food retail business on the one hand, and consumer electronics retailing on the other, is approved by the Annual General Meeting on 6 February 2017, as expected, and implemented, as scheduled, during financial year 2016/17.

Sales

For financial year 2016/17, METRO GROUP expects to see a slight rise in overall sales, despite the persistently challenging economic environment. The Real sales line is expected to generate slightly better performance compared with financial year 2015/16.

In like-for-like sales, METRO GROUP foresees another slight increase that will follow the reporting period's rise of 0.2%. The METRO Cash & Carry and Media-Saturn sales lines in particular are expected to contribute to this development. The Real sales line is expected to generate slightly better performance compared with financial year 2015/16.

Earnings

In financial year 2016/17, earnings development will also be shaped by the persistently challenging economic environment, with political developments adding to economic challenges.

Nonetheless, METRO GROUP expects to achieve another slight improvement in earnings. Aside from operational improvements, METRO GROUP will again closely focus on efficient structures and strict cost management in this context. These measures are expected to result in special items for the last time, marking the successful conclusion of METRO GROUP's transformation.

For these reasons, METRO GROUP expects EBIT before special items to rise slightly above the €1,560 million achieved in financial year 2015/16, although this figure will include slightly lower income from real estate sales.

METRO Cash & Carry and Media-Saturn are expected to contribute to the slight earnings improvement.

Store network

Development of the store network Q1 2016/17

30/9/2016 New store openings/
additions
Q1 2016/17
Closures/
disposals
Q1 2016/17
31/12/2016 Change
(absolute)
METRO Cash & Carry 752 +1 -2 751 -1
Media-Saturn 1,023 +11 -2 1,032 +9
Real 285 -3 282 -3
Total 2,064* +12 -7 2,069* +5

Store network as of 31 December 2016

METRO Cash & Carry Media-Saturn Real METRO GROUP
Openings/
Closures/
additions
disposals
Q1 2016/17
Q1 2016/17
31/12/2016 Openings/
Closures/
additions
disposals
Q1 2016/17
Q1 2016/17
31/12/2016 Opening/
Closures/
additions
disposals
Q1 2016/17
Q1 2016/17
31/12/2016 Openings/
Closures/
additions
disposals
Q1 2016/17
Q1 2016/17
31/12/2016
Germany 106 424 -3 282 -3 812
Austria 12 +1 50 +1 62
Belgium 16 +1 24 +1 40
France 94 94
Italy 49 +2 113 +2 162
Luxembourg 2 2
Netherlands 17 49 66
Portugal 10 +1 10 +1 20
Spain 37 +1 80 +1 117
Sweden 27 27
Switzerland 28 28
Western Europe
(excl. Germany)
235 +6 383 +6 618
Bulgaria 11 11
Croatia 9 9
Czech Republic 13 13
Greece 11 11
Hungary 13 +2 24 +2 37
Kazakhstan 6 6
Moldova 3 3
Poland 30 +1 84 +1 114
Romania 30 30
Russia 89 61 150
Serbia
-1
9 -1 9
Slovakia 6 6
Turkey 32 +2
-2
45 +2
-2
77
Ukraine
-1
31 -1 31
Eastern Europe
-2
282 +5
-2
225 +5
-4
507
China
+1
87 +1 87
India 23 23
Japan 9 9
Pakistan 9 9
Asia
+1
128 +1 128
Total
+1
-2
751 +11
-2
1,032 -3 282 +12
-7
2,069*

*Including four stores in the Others segment

Reconciliation of special items

Q1 2016/17

Special items

by sales line

As reported Special items Before special items
€ million Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17
EBITDA
thereof METRO Cash & Carry
1,460
980
976
520
-412
-419
79
17
1,048
562
1,055
537
Media-Saturn
Real
358
119
376
55
7
-1
-5
53
365
118
370
108
Others 6 23 0 14 6 37
Consolidation -4 2 0 0 -4 2
EBIT 1,240 733 -412 88 828 821
thereof METRO Cash & Carry 877 405 -419 26 458 431
Media-Saturn
Real
301
84
318
18
7
-1
-5
53
309
83
312
71
Others -19 -11 0 14 -19 4
Consolidation -3 3 0 0 -3 3
Net financial result -134 -53 30 0 -104 -52
EBT (earnings before taxes) 1,106 680 -382 88 724 769
Income taxes -509 -450 202 106 -307 -345
Profit or loss for the period from continuing operations 597 230 -180 194 417 424
Profit or loss for the period from discontinued operations after taxes 0 0 0 0 0 0
Profit or loss for the period 597 230 -180 194 417 424
Profit or loss for the period attributable to non-controlling interests 48 30 2 12 50 43
from continuing operations 48 30 2 12 50 43
from discontinued operations 0 0 0 0 0 0
Profit or loss for the period attributable to the shareholders of METRO AG 549 200 -182 182 367 381
from continuing operations 549 200 -182 182 367 381
from discontinued operations 0 0 0 0 0 0
Earnings per share in € (basic = diluted) 1.68 0.61 -0.56 0.56 1.12 1.17
from continuing operations 1.68 0.61 -0.56 0.56 1.12 1.17
from discontinued operations 0.00 0.00 0.00 0.00 0.00 0.00

Special items

Q1 2015/16 Special items
€ million As reported Portfolio changes Restructuring and
efficiency-enhancing
measures
Risk provisions
including impairment
losses on goodwill
Other special items Before special items
EBITDA 1.460 -427 6 9 1.048
EBIT 1.240 -427 6 9 828
Net financial result -134 30 -104
EBT 1.106 -397 6 9 724
Income taxes -509 2021 -307
Profit or loss for the period from
continuing operations
597 -397 6 211 417
Profit or loss for the period from
discontinued operations after taxes
0 0
Profit or loss for the period 597 -397 6 211 417
Profit or loss for the period
attributable to non-controlling
interests
48 1
2
50
from continuing operations 48 1
2
50
from discontinued operations 0 0 0 0 0 0
Profit or loss for the period
attributable to the shareholders of
METRO AG
549 -397 6 209 367
from continuing operations 549 -397 6 209 367
from discontinued operations
6.
0
7.
0
8.
0
9.
0
10.
0
11.
0
12.
Q1 2016/17 Special items
Restructuring and
efficiency-enhancing
Risk provisions
including impairment
€ million As reported Portfolio changes measures losses on goodwill Other special items Before special items
EBITDA 976 1 70 - 8 1,055
EBIT 733 1 79 - 8 821
Net financial result -53 1 - -52
EBT 680 1 79 - 8 769
Income taxes -450 - - 1061 -345
Profit or loss for the period from
continuing operations
230 1 79 - 114 424
Profit or loss for the period from
discontinued operations after taxes
0 - - - 0
Profit or loss for the period 230 1 79 - 114 424
Profit or loss for the period
attributable to non-controlling
interests
30 - - 121 43
from continuing operations 30 - - 121 43
from discontinued operations 0 0 0 0 0 0
Profit or loss for the period
attributable to the shareholders of
METRO AG
200 1 79 - 102 381
from continuing operations 200 1 79 - 102 381
from discontinued operations 0 0 0 0 0 0

1The special item included in income taxes and non-controlling interests results from the application of the integral approach and therefore cannot be divided into the clusters

  1. 14.15. 16. 17. 18. 19. 20. 21. 22.

Income statement

€ million
Q1 2015/16
Q1 2016/17
Sales
17,090
16,986
Cost of sales
-13,718
-13,666
Gross profit on sales
3,372
3,320
Other operating income
734
287
Selling expenses
-2,501
-2,486
General administrative expenses
-352
-377
Other operating expenses
-13
-15
Earnings share of operating companies recognised at equity
0
4
Earnings before interest and taxes EBIT
1,240
733
Earnings share of non-operating companies recognised at equity
3
0
Other investment result
0
0
Interest income
13
10
Interest expenses
-76
-58
Other financial result
-74
-5
Net financial result
-134
-53
EBT (earnings before taxes)
1,106
680
Income taxes
-509
-450
Profit or loss for the period from continuing operations
597
230
Profit or loss for the period from discontinued operations
0
0
Profit or loss for the period
597
230
Profit or loss for the period attributable to non-controlling interests
48
30
from continuing operations
48
30
from discontinued operations
0
0
Profit or loss for the period attributable to the shareholders of METRO AG
549
200
from continuing operations
549
200
from discontinued operations
0
0
Earnings per share in € (basic = diluted)
1.68
0.61
from continuing operations
1.68
0.61
from discontinued operations
0.00
0.00

Balance sheet

Assets

€ million 30/9/2016 31/12/2015 31/12/2016
Non-current assets 13,369 13,153 13,193
Goodwill 3,361 3,310 3,361
Other intangible assets 497 460 505
Property, plant and equipment 8,141 7,946 8,095
Investment properties 126 175 126
Financial assets 104 121 93
Investments accounted for using the equity method 188 183 183
Other financial and non-financial assets 289 344 283
Deferred tax assets 663 614 547
Current assets 11,583 17,104 16,014
Inventories 5,456 6,628 6,710
Trade receivables 808 775 826
Financial assets 1 6 0
Other financial and non-financial assets 2,734 4,720 4,095
Entitlements to income tax refunds 216 245 246
Cash and cash equivalents 2,368 4,711 4,137
Assets held for sale 0 19 0
24,952 30,257 29,207

Equity and liabilities

€ million 30/9/2016 31/12/2015 31/12/2016
Equity 5,332 5,714 5,660
Share capital 835 835 835
Capital reserve 2,551 2,551 2,551
Reserves retained from earnings 1,934 2,313 2,252
Non-controlling interests 12 15 22
Non-current liabilities 5,950 6,827 5,789
Provisions for post-employment benefits plans and similar obligations 1,414 1,268 1,343
Other provisions 383 462 358
Borrowings 3,812 4,769 3,791
Other financial and non-financial liabilities 191 213 187
Deferred tax liabilities 150 115 110
Current liabilities 13,670 17,716 17,758
Trade liabilities 9,383 13,387 13,104
Provisions 705 631 755
Borrowings 947 892 1,006
Other financial and non-financial liabilities 2,465 2,391 2,425
Income tax liabilities 170 415 468
Liabilities related to assets held for sale 0 0 0
24,952 30,257 29,207

Cash flow statement

€ million Q1 2015/16 Q1 2016/17
EBIT 1,240 733
Depreciation/amortisation/impairment losses/reversal of impairment losses of assets excl. financial investments 220 242
Change in provisions for post-employment benefits plans and similar obligations -59 0
Change in net working capital 2,015 1,833
Income taxes paid -132 -126
Reclassification of gains (-) / losses (+) from the disposal of fixed assets 1 -36
Other -216 -64
Cash flow from operating activities of continuing operations 3,069 2,582
Cash flow from operating activities of discontinued operations 0 0
Cash flow from operating activities 3,069 2,582
Acquisition of subsidiaries -55 -6
Investments in property, plant and equipment (excl. finance leases) -278 -251
Other investments -416 -525
Disposals of subsidiaries -6 0
Disposal of fixed assets 30 13
Gains (+) / losses (-) from the disposal of fixed assets -1 36
Cash flow from investing activities of continuing operations -726 -733
Cash flow from investing activities of discontinued operations 86 0
Cash flow from investing activities -640 -733
Dividends paid
to METRO AG shareholders1 0 -17
to other shareholders2 -24 -20
Redemption of liabilities from put options of non-controlling interests -86 -19
New borrowings 0 35
Redemption of borrowings -1,910 0
Interest paid -76 -59
Interest received 13 7
Profit and loss transfers and other financing activities -51 -11
Cash flow from financing activities of continuing operations -2,134 -84
Cash flow from financing activities of discontinued operations 0 0
Cash flow from financing activities -2,134 -84
Total cash flows 295 1,765
Currency effects on cash and cash equivalents 0 4
Total change in cash and cash equivalents 295 1,769
Cash and cash equivalents as of 1 October 4,417 2,368
Cash and cash equivalents shown under IFRS 5 assets 2 0
Cash and cash equivalents as of 1 October 4,415 2,368
Total cash and cash equivalents as of 31 December 4,712 4,137
Cash and cash equivalents shown under IFRS 5 assets 0 0
Cash and cash equivalents as of 31 December 4,712 4,137

1Reported dividends include dividends to minority shareholders in the amount of €-17 million (previous year: €0 million) whose shareholdings are shown under debt capital due to put

options 2Reported dividends include dividends to minority shareholders in the amount of €-5 million (previous year: €0 million) whose shareholdings are shown under debt capital due to put options

Segment reporting Q1 2016/17

Operating segments Continuing operations of the group
METRO Cash & Carry Media-Saturn Real Others
€ million Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17
Sales 8,037 8,015 6,889 6,893 2,144 2,058 19 20
EBITDA 980 520 358 376 119 55 6 23
EBITDA before special items 562 537 365 370 118 108 6 37
EBIT 877 405 301 318 84 18 -19 -11
EBIT before special items 458 431 309 312 83 71 -19 4
Investments 105 48 64 55 143 13 25 26
Operating segments continued Continuing operations of the group Discontinued operations of
the group
Consolidation METRO GROUP
€ million Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17 Q1 2015/16 Q1 2016/17
Sales 0 0 17,090 16,986 0 0
EBITDA -4 2 1,460 976 0 0
EBITDA before special items -4 2 1,048 1,055 n/a n/a
EBIT -3 3 1,240 733 0 0
EBIT before special items -3 3 828 821 n/a n/a
Investments 0 0 337 142 0 0

Financial calendar 2016/17

Annual General Meeting 2017 Monday 6 February 2017 10.00 a.m.
Half-Year Financial Report H1/Q2 2016/17 Wednesday 31 May 2017 7.30 a.m.
Quarterly Statement 9M/Q3 2016/17 Thursday 31 August 2017 7.30 a.m.

All time specifications are CET

Imprint

METRO AG Metro-Straße 1 40235 Düsseldorf, Germany

PO Box 230361 40089 Düsseldorf, Germany

www.metrogroup.de

Published: 3 February 2017

Investor Relations
Telephone +49 (211) 6886-1051
Fax +49 (211) 6886-3759
E-mail [email protected]
Creditor Relations
Telephone +49 (211) 6886-1904
Fax +49 (211) 6886-1916
E-mail [email protected]
Corporate Communications
Telephone +49 (211) 6886-4252
Fax +49 (211) 6886-2001
E-mail [email protected]

Visit our website at www.metrogroup.de, the primary source for publications and information about METRO GROUP.

Disclaimer

This quarterly report contains forward-looking statements which are based on certain expectations and assumptions at the time of publication of this report and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in these materials. Many of these risks and uncertainties relate to factors that are beyond METRO GROUP's ability to control or estimate precisely, such as future market and economic conditions, the behaviour of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated cost savings and productivity gains as well as the actions of government regulators. METRO GROUP does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.

Intended demerger: To date, the general meeting of METRO AG has taken no decision on the demerger of METRO GROUP. Thus, any information on the intended demerger only reflects the current status and targeted measures/structure, all of which may be subject to changes in the course of the future process

Please note: In case of doubt the German version shall prevail.

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