Quarterly Report • Aug 18, 2015
Quarterly Report
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| 3 | Group financial figures |
|---|---|
| 5 | METRO shares |
| 6 | Interim Group management report |
| 6 | Macroeconomic conditions |
| 7 | Financial position and financial |
| performance | |
| 10 | Risks and opportunities |
| 10 | Sustainability |
| 11 | METRO Cash & Carry |
| 13 | Media-Saturn |
| 15 | Real |
| 16 | Others |
| 17 | Discontinued operations |
| 18 | Subsequent events and outlook |
| 20 | Store network |
| 21 | Reconciliation of special items |
| 25 | Interim consolidated financial statements |
| 25 | Income statement |
| 26 | Reconciliation from profit or loss for the |
| period to total comprehensive income | |
| 27 | Balance sheet |
| 28 | Cash flow statement |
| 29 | Statement of changes in equity |
| 30 | Notes to the consolidated financial statements |
| 30 | Segment reporting |
| 34 | Other |
| 47 | Financial calendar and imprint |
Galeria Kaufhof sold to Hudson's Bay Company for €2.825 billion; transaction to be closed in September 2015; reported as "discontinued operations"
Adjusted for portfolio changes and currency effects, sales rose by 2.0%; like-for-like sales increased by 1.6%
EBIT: €487 million (9M 2013/14: €872 million); EBIT before special items: €1,076 million (9M 2013/14: €1,127 million) including negative currency effects (about €100 million)
EPS before special items from continuing operations: €0.94 (9M 2013/14: €0.84)
Net debt reduced to €5.1 billion
METRO GROUP forecast for financial year 2014/15 for continuing operations confirmed
Different timing of Easter business causes like-for-like sales of METRO GROUP to decline slightly by 0.4%
EBIT: €175 million (Q3 2013/14: €171 million); EBIT before special items: €209 million (Q3 2013/14: €253 million); including negative currency effects (about €11 million) and lower revenues from the sale of real estate assets compared to the previous year's quarter
EPS before special items from continuing operations: €0.05 (Q3 2013/14: €0.27)
Sales: -1.3% (in local currency: -1.3%)
Like-for-like sales up 0.1% despite earlier Easter business; 8th consecutive quarterly increase
Sales: +1.2% (in local currency: +1.2%)
Like-for-like sales up 0.2%; 4th consecutive quarterly increase
Positive development of like-for-like sales in Western and Eastern Europe
Online sales up 24%
Sales: -8.2% due also to sale of Real Eastern Europe Due partly to the different timing of the Easter business, likefor-like sales in Germany declined by 3.7%
| € million | 9M 2013/14 | 9M 2014/15 | Change (€) | Change (local currency) |
|---|---|---|---|---|
| Sales | 45,532 | 44,977 | -1.2% | 0.4% |
| Germany | 17,231 | 17,180 | -0.3% | -0.3% |
| International | 28,300 | 27,797 | -1.8% | 0.8% |
| Western Europe (excl. Germany) | 14,323 | 14,430 | 0.7% | 0.5% |
| Eastern Europe | 11,234 | 10,126 | -9.9% | 0.9% |
| Asia/Africa | 2,743 | 3,241 | 18.1% | 2.2% |
| International share of sales | 62.2% | 61.8% | - | |
| EBITDA2 | 1,854 | 1,763 | -5.0% | |
| EBIT2 | 1,127 | 1,076 | -4.5% | |
| Earnings before taxes (EBT)2 | 751 | 807 | 7.5% | |
| Profit or loss for the period2, 3 | 274 | 306 | 11.8% | |
| EPS (€)2 | 0.84 | 0.94 | 11.8% | |
| Investments | 558 | 656 | 17.7% | |
| Stores4 | 2,075 | 2,074 | 0.0% | |
| Selling space (1,000 sqm2 ) 4 |
10,962 | 10,648 | -2.9% | |
| Employees (full-time basis)4 | 206,326 | 201,896 | -2.1% |
1Continuing Operations
2Before special items 3Profit or loss for the period attributable to shareholders of METRO AG
4As at the closing date 30 June
| € million | Q3 2013/14 | Q3 2014/15 | Change (€) | Change (local currency) |
|---|---|---|---|---|
| Sales | 14,168 | 13,967 | -1.4% | -1.4% |
| Germany | 5,312 | 5,130 | -3.4% | -3.4% |
| International | 8,857 | 8,837 | -0.2% | -0.2% |
| Western Europe (excl. Germany) | 4,565 | 4,570 | 0.1% | -0.4% |
| Eastern Europe | 3,454 | 3,274 | -5.2% | 0.9% |
| Asia/Africa | 837 | 993 | 18.6% | -3.2% |
| International share of sales | 62.5% | 63.3% | - | |
| EBITDA2 | 486 | 435 | -10.6% | |
| EBIT2 | 253 | 209 | -17.4% | |
| Earnings before taxes (EBT)2 | 151 | 115 | -23.9% | |
| Profit or loss for the period2, 3 | 89 | 17 | -81.2% | |
| EPS (€)2 | 0.27 | 0.05 | -81.2% | |
| Investments | 239 | 269 | 12.7% | |
| Stores4 | 2,075 | 2,074 | 0.0% | |
| Selling space (1,000 sqm2 ) 4 |
10,962 | 10,648 | -2.9% | |
| Employees (full-time basis)4 | 206,326 | 201,896 | -2.1% |
1Continuing Operations
2Before special items 3Profit or loss for the period attributable to shareholders of METRO AG
4As at the closing date 30 June
At the start of financial year 2014/15, the METRO AG common share initially fell in sync with the German stock index DAX and the Dow Jones Euro Stoxx Retail sector index. On 16 October 2014, the METRO share dropped to a nine-month low for 2014/15 of €23.06. Following a recovery in November, the METRO share rose in sync with the indices again. The geopolitical situation in Russia and Ukraine in combination with the weakening currencies in these countries weighed heavily on the METRO share at the end of November 2014. From mid-December, positive reports about the past financial year and the announcement of an attractive dividend caused the share to rally again. Starting in January, the share rose continuously in line with the DAX and the Dow Jones Euro Stoxx Retail Index. Stronger economic momentum in Europe and the European Central Bank's decision to initiate a major quantitative easing programme with €60 billion in monthly bond purchases at the beginning of March fuelled the positive market sentiment. In addition, many export-oriented European companies have benefited from the stronger US dollar. In this positive environment, the METRO share reached a high for the nine-month period of €34.56 on 10 April 2015. Over the course of April, the debate about a possible "Grexit" had a largely negative impact on European stock markets. This caused indices and stock prices to decline markedly. The METRO share also was not immune to this development.
Overall, the METRO ordinary share price rose by 8.4% between October 2014 and June 2015 to €28.28. The DAX gained 15.5% while the Dow Jones Euro Stoxx Retail sector index rose by as much as 20.0%.
As at the end of June 2015, Deutsche Börse's index ranked METRO AG's share 41st in terms of market capitalisation and 31st in terms of stock market trading volume.
| Q1 2014/15 Q2 2014/15 | Q3 2014/15 | |||
|---|---|---|---|---|
| Closing price (€) | Ordinary shares | 25.31 | 31.60 | 28.28 |
| Preference shares |
21.15 | 23.35 | 22.22 | |
| Highest price (€) | Ordinary shares | 27.71 | 31.69 | 34.56 |
| Preference shares |
21.79 | 24.44 | 24.30 | |
| Lowest price (€) | Ordinary shares | 23.06 | 24.17 | 28.20 |
| Preference shares |
19.31 | 21.13 | 22.10 | |
| Market capitalisation (€ billion)1 |
Total | 8.3 | 10.3 | 9.2 |
1At the end of the reporting period; data based on Xetra closing prices
Global economic developments were mixed over the last nine months. The US economy showed signs of recovery during the Q3 2014/15. Overall, the Western European economies continued on their recovery path, supported by low oil prices, the low Euro/US dollar exchange rate and lower interest rates. The Eastern European economies generally showed stable developments. In the other Eastern European countries, the Russia-Ukraine conflict overshadowed the economic situation. Growth weakened in Asia, particularly in China. However, as a whole, the region continued to record the strongest growth rates. Overall, global economic growth during the current financial year thus fell slightly short of the growth rate of 2.5% recorded during the same period a year earlier.
Germany once again outperformed the other Western European economies during the period October 2014 to June 2015. Declining unemployment and growing disposable incomes bolstered private consumption and retail, which thus emerged as the key drivers of economic growth over the past quarters. Overall, non-food retail posted stronger nominal sales growth than food retail. In the non-food sector, clothes retailing was the key exception once again as it suffered a steep, partly weather-induced sales decline. At the same time, online retail continued to record growth and expanded its market share.
In Western Europe, low oil prices, the weaker Euro/US dollar exchange rate and low interest rates resulting from the European Central Bank's bond purchase programme served as a short-term economic stimulus programme. Meanwhile, uncertainties over Greece's possible exit from the Eurozone increased again during the reporting period. At the same time, recovery in the Western European countries continued to progress at very different rates: While Spain recorded strong growth – despite continuously high unemployment – Italy, in particular, continued its slow recovery from recession with low economic growth. Overall, however, the economic recovery caused unemployment in the Eurozone to decline slightly. As a result, retail also recovered. Following three weak years, nominal retail sales increased slightly by about 1% during the period October 2014 to June 2015. At the same time, consumer
prices have only increased marginally so far. As a result, the inflation-adjusted retail sales increase was similarly high.
Despite a short-term stabilisation following the second Minsk agreement, economic developments in Eastern Europe were overshadowed by the Russia-Ukraine conflict, which negatively impacted these two countries' economies, in particular. In addition, low oil prices weighed on Russia's economy. At the same time, inflation in both countries showed a strong year-toyear increase as a result of the currency devaluations - although the most recent readings once again pointed to a certain slowdown. Because of the self-imposed import ban, grocery prices in Russia increased by a disproportionate amount. In turn, the Central European economies – Poland, Czech Republic and Slovakia – recorded overall robust economic developments. This was also reflected in retail sales, which mostly posted solid nominal growth above 3%.
While Asia's emerging markets once again recorded the highest economic growth rates, overall growth in China has weakened. India, in turn, experienced positive momentum, posting growth rates above 7% most recently. Retail sales in both countries recorded double-digit nominal growth during the reporting period. In India, however, half of this growth was due to the increase in prices. Supported by expansionary monetary and fiscal policies, Japan's economy, in turn, is struggling to climb out of recession. As a result, retail sales declined between October 2014 and June 2015.
Due to the sale to Hudson's Bay Company, Galeria Kaufhof will no longer be shown as a separate segment, but as a discontinued operation. Accordingly, METRO GROUP's financials have been recalculated to account for the disposal of Galeria Kaufhof and the previous year's figures have been adjusted (with the exception of the balance sheet). The sale is scheduled to close in September 2015.
Adjusted for currency effects and portfolio changes, METRO GROUP posted sales growth of 2.0% during the first nine months of 2014/15 (1 October 2014 to 30 June 2015) compared with the previous year's period. Reported sales declined by 1.2% to €45.0 billion. This is due mostly to the sale of Real in Eastern Europe as well as to significant negative currency effects in large parts of Eastern Europe, particularly Russia and Ukraine. Like-for-like sales increased noticeably by 1.6%.
In Q3 (1 April to 30 June 2015), sales adjusted for currency effects and portfolio changes declined slightly by 0.2%. Reported sales declined by 1.4% to €14.0 billion. Like-for-like sales were down only slightly by 0.4%. This is due to the earlier Easter business, which mostly fell into the second quarter.
Delivery sales increased by 13.1% to €2.3 billion in the first nine months of 2014/15 (9M 2013/14: €2.0 billion). In Q3 2014/15, delivery sales rose by as much as 14.5% to €0.8 billion.
From October 2014 to June 2015, METRO GROUP's online sales totalled €1.4 billion, a rise of more than 26% compared with the previous year's period. Online sales also grew substantially during Q3 2014/15, rising by 26% to €0.4 billion in a reflection of METRO GROUP's successful transformation into a multi-channel provider.
In Germany, sales between October 2014 and June 2015 totalled €17.2 billion and thus fell slightly short of the previous year's level. In Q3, several factors including the different timing of the Easter business affected sales, which fell by 3.4% to €5.1 billion.
International sales fell by 1.8% to €27.8 billion during the reporting period, due mostly to exchange rate developments. In spite of negative portfolio effects, currency-adjusted sales increased by 0.8%. Sales declined slightly by 0.2% in Q3 to €8.8 billion (-0.2% also in local currency).
The international share of sales decreased from 62.2% to 61.8% during the reporting period.
In Western Europe (excluding Germany), sales rose by 0.7% to €14.4 billion during the first nine months of 2014/15. This is due to positive developments at Media-Saturn. In Q3 2014/15, sales increased by 0.1% to €4.6 billion.
In Eastern Europe, sales declined by 9.9% to €10.1 billion during the reporting period. The decrease resulted from distinctly negative currency effects and the disposal of Real in Eastern Europe. Currency-adjusted sales increased by 0.9%. Sales fell by 5.2% to €3.3 billion in Q3 2014/15, while sales in local currency increased by 0.9%.
Sales in Asia/Africa grew markedly by 18.1% to €3.2 billion, supported by favourable operational developments and positive currency effects. Measured in local currency, sales rose by 2.2%. Sales increased by 18.6% to €1.0 billion in Q3 (in local currency: -3.2%).
Special items include one-time transactions or a number of one-time transactions of the same type, which make it difficult to gauge a company's operating performance and are reported on the income statement.
Reporting before special items therefore provides a better reflection of operating performance, thus increasing the value of the information provided on the result. An overview, including the reconciliation of special items, can be found on pages 21 to 24.
Accordingly, result figures before special items are figures to which one-off expenses are added and from which one-off earnings are subtracted.
During the first nine months of 2014/15, EBIT at METRO GROUP stood at €487 million (9M 2013/14: €872 million). It includes special items totalling €590 million (in 9M 2013/14: €255 million). These relate mostly to impairment losses on goodwill at Real. EBIT before special items amounted to €1,076 million (9M 2013/14: €1,127 million). This decline is due, in particular, to foreign exchange losses of about €100 million, primarily in relation to the Russian rouble. As a result, EBIT before special items adjusted for currency effects increased.
In Q3 2014/15, EBIT stood at €175 million (Q3 2013/14: €171 million). Special items totalling €35 million (Q3 2013/14: €83 million) relate to restructuring expenses in the segments METRO Cash & Carry, Media-Saturn and Real. EBIT before special items totalled €209 million (Q3 2013/14: €253 million). In this context, it should be noted that the result from real estate transactions was markedly higher in the previous year's quarter than in the reporting quarter. Adjusted for income from real estate and currency effects, EBIT before special items roughly equalled the previous year's level.
The net financial result improved markedly between October 2014 and June 2015 from €-418 million to €-275 million. The net interest result amounted to €-212 million as a result of lower indebtedness and lower interest rates (9M 2013/14: €-293 million). The other financial result improved significantly from €-135 million to €-66 million compared with the first nine months of 2013/14, essentially as a result of lower expenses for unhedged exchange rates.
Earnings before taxes totalled €212 million between October 2014 and June 2015 (9M 2013/14: €454 million). Before special items, EBT amounted to €807 million (9M 2013/14: €751 million).
Reported tax expenses of €139 million (9M 2013/14: €476 million) correspond to a group tax rate of 65.4% (9M 2013/14: 104.8%). The tax rate before special items stands at 56.6% (9M 2013/14: 56.8%). Tax expenses only relate to continuing operations. Under consideration of discontinued operations, the group tax rate amounted to 49.2% (9M 2013/14: 74.2%), tax rate before special items stands at 51.4% (9M 2013/14: 44.8%).
The calculation is based on the so-called integral approach whereby the reported tax expenses correspond to the expected tax rate as at the end of the financial year. The expected effects from the proceeds of the sale of Galeria Kaufhof as at 30 September 2015 have already been considered in the applied tax rates.
In the first nine months of 2014/15, profit or loss for the period amounted to €158 million (9M 2013/14: €160 million). It is divided into profit or loss for the period from continuing operations in the amount of €73 million (9M 2013/14: €-22 million) and profit or loss for the period from discontinued operations in the amount of €85 million (9M 2013/14: €182 million).
Profit for the period before special items declined to €445 million from €506 million. This includes €351 million (9M 2013/14: €325 million) from continuing operations and €94 million (€181 million) from discontinued operations.
In the first nine months, earnings per share amounted to €0.38 (9M 2013/14: €0.36). Earnings per share before special items amounted to €1.23 (9M 2013/14: €1.39). This includes €0.94 (9M 2013/14: €0.84) from continuing operations and €0.29 (9M 2013/14: €0.55) from discontinued operations.
In Q3 2014/15, earnings per share came to €0.35 (Q3 2013/14: €-0.19). Adjusted for special items, earnings per share in Q3 2014/15 stood at €0.07 (Q3 2013/14: €0.32). This includes €0.05 (Q3 2013/14: €0.27) from continuing operations and €0.02 (Q3 2013/14: €0.05) from discontinued operations.
METRO GROUP's capex between October 2014 and June 2015 amounted to €656 million (9M 2013/14: €558 million). In Q3 2014/15, METRO GROUP invested €269 million (Q3 2013/14: €239 million).
From October 2014 to June 2015, METRO GROUP opened 42 stores in 12 countries (9M 2013/14: 57 new openings), including 11 stores in Q3 2014/15 (Q3 2013/14: 15). In addition, 31 stores were sold or closed (9M 2013/14: 66 disposals/closures), including 8 stores in Q3 2014/15 (Q3 2013/14: 1).
Between October 2014 and June 2015, METRO Cash & Carry opened a total of 17 stores (9M 2013/14: 13). This includes 9 stores in Russia and 4 stores in China as well as one new opening each in Croatia, Serbia, India and Turkey. As announced, METRO Cash & Carry's 5 stores in Denmark were closed at the end of 2014. The company's 9 stores in Greece were disposed of in January 2015. In addition, 1 METRO Cash & Carry store each was disposed of in Italy, Bulgaria, Serbia, Romania and China.
Media-Saturn opened 25 consumer electronics stores between October 2014 and June 2015 (9M 2013/14: 43). The new store openings will lead to an even tighter network of stores in Russia, Turkey, the Netherlands, Spain, Germany, Switzerland, Poland and Belgium. A total of 6 stores were closed in Germany, Belgium, Italy and Russia.
As announced, Real has closed 6 stores since October 2014.
At the end of June 2015, METRO GROUP operated 2,074 stores in 30 countries. Added to this must be 134 stores of discontinued operations.
A detailed presentation on the business development of the individual divisions is given on pages 11 to 16.
METRO GROUP employs typical ongoing capital market programmes for funding purposes. To cover medium- and longterm funding requirements, the Group uses a debt issuance programme. Bonds are issued from this programme. The maximum programme volume amounts to €6.0 billion and was drawn down by about €3.6 billion as at 30 June 2015 (30 June 2014: €4.0 billion). As early as October 2014, METRO GROUP successfully issued a benchmark bond with a volume of €500 million, a seven-year term and a coupon of 1.375% in the euro capital market to partially refinance its €1 billion bond maturing in March 2015 ahead of time. In addition, a €600 million bond with a term of 10 years and a coupon of 1.5% was placed in March 2015.
Short-term financing requirements are covered through the Euro Commercial Paper Programme and a commercial paper programme geared especially to French investors. The maximum volume of each programme amounts to €2.0 billion. The total drawdown on both programmes between October 2014 and June 2015 amounted to €1.0 billion on average (Q3 2013/14: €0.5 billion).
In addition, METRO GROUP has bilateral and syndicated credit lines amounting to €3.7 billion with durations up to 2020. As at 30 June 2015, a total of €0.7 billion was drawn down (30 June 2014: €1.0 billion). A total of €3.0 billion in syndicated and bilateral multi-year credit lines was not drawn on.
METRO GROUP's credit rating by Standard & Poor's of BBBwith a stable outlook is unchanged at investment grade.
Compared with the end of the financial year as at 30 September 2014, total assets decreased by €0.7 billion to €27.5 billion. Year on year compared with 30 June 2014, total assets fell by €1.3 billion.
As at 30 June 2015, METRO GROUP's balance sheet disclosed €4.7 billion in equity. Compared with 30 September 2014, the equity ratio decreased from 17.8% to 17.1%. This is also due to lower equity and goodwill impairments at Real. Year on year compared with 30 June 2014, the equity ratio fell from 17.5% to 17.1%, reflecting the lower equity resulting from currency effects and a lower actuarial interest rate for pension liabilities as well as goodwill impairments.
Net debt, after netting cash and cash equivalents as well as financial investments with financial liabilities (including finance leases), improved to €5.1 billion as at 30 June 2015. Compared with 30 September 2014, net debt also increased as a result of the dividend payout.
Between October 2014 and June 2015, total cash inflow from operating activities amounted to €0.6 billion (9M 2013/14: €1.0 billion). This includes €0.5 billion in cash flow from operating activities of continuing operations (9M 2013/14: €0.8 billion).
Cash flow from investing activities totalled €-1.0 billion (9M 2013/14: €-0.8 billion) and comprises, in particular, investments in property, plant and equipment. Cash flow from investing activities of continuing operations totalled €-1.1 billion (9M 2013/14: €-0.8 billion).
Cash flow from financing activities showed outflows of €0.3 billion (9M 2013/14: cash outflow of €0.3 billion) and related to dividend payments, in particular. This includes €0.2 billion in cash flow from financing activities of continuing operations (9M 2013/14: €0.2 billion).
Since the preparation of the consolidated financial statements (24 November 2014), the following material changes arose from the reported opportunities and risks concerning the ongoing development of METRO GROUP as described in detail in the Annual Report 2014 (pp. 149 to 162).
Given the recent slowing of the devaluation of the Russian rouble and assuming a stabilisation of the rouble at this level, METRO GROUP projects a correspondingly lower negative translation effect of about €150 million on EBIT.
There are no risks that could endanger the company's existence and, at present, none can be identified for the future.
On 22 April 2015, the Stock Exchange of Lower Saxony in Hanover listed the first investable diversity index: German Gender Index. The index comprises 50 German companies whose management is best positioned with a balanced make-up of female and male executives represented on the management and supervisory boards. METRO AG is included in this index, which will be reviewed semi-annually in future.
Real was once again recognised with the "Good Egg Award" of British animal welfare association "Compassion in world farming". Real was honoured with the "Good Egg Award" because the sales line already produces more than 80% of own brand products with relevant egg contents such as gourmet salads, biscuits and mayonnaise without eggs from caged hens. Real will switch all relevant products by 2016 and will indicate the farming method on the packaging. In addition, Real was awarded the "Good Rabbit Commendation". Since 2007, the organisation "Compassion in world farming" has honoured companies for their commitment, transparency, performance and innovation in the animal welfare area.
In the context of the so-called "Good Deeds Day", about 380 apprentices of the sales lines and service companies of METRO GROUP raised funds to protect mangrove forests in Malaysia, investing time and effort into a long-term climate protection project. A wide range of activities at the stores in June directed customers' attention to this initiative.
For the first time in the history of METRO GROUP, an entire day was devoted exclusively to sustainability and corporate responsibility in June 2015. In this context, the first Sustainability Day took place at the campus headquarters in Düsseldorf. It offered employees a varied agenda including speeches, workshops and an interactive sustainability exhibition. In this way, the event informed employees about corporate responsibility and raised awareness for sustainability. Alongside the sales lines METRO Cash & Carry and Real, also METRO PROPERTIES and METRO LOGISTICS showcased their contribution to the topic of sustainability.
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) | Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | |
| Total | 22,918 | 22,338 | -2.1% | -2.5% | -4.4% | -2.6% | 2.3% | 0.0% | 1.2% | 0.9% |
| Germany | 3,651 | 3,584 | -0.4% | -1.8% | 0.0% | 0.0% | -0.4% | -1.8% | -0.4% | -1.8% |
| Western Europe (excl. Germany) |
7,916 | 7,672 | -0.7% | -3.1% | 0.0% | 0.0% | -0.7% | -3.1% | -1.0% | -1.1% |
| Eastern Europe | 8,613 | 7,847 | -5.0% | -8.9% | -9.6% | -12.2% | 4.7% | 3.3% | 3.2% | 4.2% |
| Asia/Africa | 2,739 | 3,235 | 1.3% | 18.1% | -6.9% | 16.0% | 8.2% | 2.2% | 4.7% | 1.6% |
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) | Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | |
| Total | 7,549 | 7,449 | -2.2% | -1.3% | -4.9% | 0.0% | 2.8% | -1.3% | 2.0% | 0.1% |
| Germany | 1,210 | 1,182 | 3.1% | -2.3% | 0.0% | 0.0% | 3.1% | -2.3% | 3.1% | -2.4% |
| Western Europe (excl. Germany) |
2,724 | 2,627 | -0.3% | -3.6% | 0.0% | 0.0% | -0.3% | -3.6% | -0.6% | -0.9% |
| Eastern Europe | 2,780 | 2,649 | -6.4% | -4.7% | -10.9% | -7.0% | 4.5% | 2.3% | 3.4% | 3.7% |
| Asia/Africa | 836 | 991 | -0.5% | 18.6% | -7.7% | 21.9% | 7.1% | -3.2% | 4.5% | -3.6% |
Due to the development of exchange rates (primarily Russian rouble), sales of METRO Cash & Carry decreased by 2.5% to €22.3 billion from October 2014 to June 2015. In local currency, in turn, sales matched the previous year's figure. Like-for-like sales even increased by 0.9%. Due in particular to the different timing of the Easter business, sales declined by 1.3% in Q3 2014/15 (-1.3% also in local currency). METRO Cash & Carry continued its very positive development, recording the 8th consecutive quarter of like-for-like sales growth at 0.1% in spite of the earlier Easter business.
Delivery sales continued their very positive trend, rising by 13.1% to €2.3 billion between October 2014 and June 2015. As a result, sales from the delivery business accounted for more than 10% of sales of METRO Cash & Carry for the first time. Sales from the delivery business continued their strong momentum in Q3 2014/15, rising by 14.5% to €0.8 billion.
In Germany, sales declined by 1.8% to €3.6 billion during the first nine-month period of 2014/15. In Q3 2014/15, sales fell by 2.3%, partly due to the earlier Easter business.
As announced, the Schaper brand in Germany will be subsumed under the METRO sales brand. In a first step, 17 of the 51 Schaper stores will be rebranded into METRO GASTRO still this calendar year.
Sales in Western Europe totalled €7.7 billion between October 2014 and June 2015 and fell by 3.1% below the previous year's figure. In Q3 2014/15, sales decreased by 3.6%. This is largely due to the withdrawal from Denmark. Like-for-like sales were down only by 0.9%. This is mostly due to business developments in Belgium and the Netherlands, while among others Spain and Italy showed positive development.
In Eastern Europe, sales declined by 8.9% to €7.8 billion between October 2014 and June 2015. However, this decline was largely due to currency translation. Measured in local currency, sales rose by 3.3%. Like-for-like sales in Eastern Europe rose markedly by 4.2%. In Q3 2014/15, sales decreased by 4.7%. However, sales in local currency increased by 2.3% despite the sale of the Greek stores. Like-for-like sales rose markedly by 3.7%, with countries like Turkey and, partly inflation-supported, Russia contributing to this increase.
Sales in Asia/Africa rose distinctly by 18.1% to €3.2 billion during the nine-month period of 2014/15. Exchange rates had a positive impact here. Measured in local currency, sales rose by 2.2%. Like-for-like sales increased by 1.6%. Sales rose by 18.6% in Q3 2014/15 (in local currency: -3.2%). Like-for-like sales fell by 3.6%. India recorded double-digit like-for-like sales growth, while like-for-like sales declined in China. This is due, in particular, to the decision to give up low-margin volume business.
The international share in sales generated during the period October 2014 to June 2015 dropped from 84.1% to 84.0%.
| € million | 9M 2013/14 | 9M 2014/15 | Change | Q3 2013/14 | Q3 2014/15 | Change |
|---|---|---|---|---|---|---|
| EBITDA | 1,152 | 1,080 | -6.3% | 385 | 362 | -6.2% |
| EBITDA before special items | 1,180 | 1,084 | -8.1% | 383 | 361 | -5.9% |
| EBIT | 715 | 759 | 6.0% | 265 | 255 | -3.9% |
| EBIT before special items | 864 | 781 | -9.6% | 281 | 262 | -6.6% |
| Investments | 184 | 285 | 55.0% | 82 | 119 | 44.9% |
| 30/09/2014 | 30/06/2015 | Change | 31/03/2015 | 30/06/2015 | Change | |
|---|---|---|---|---|---|---|
| Stores | 766 | 764 | -2 | 759 | 764 | 5 |
| Selling space (1,000 sqm) | 5,576 | 5,473 | -103 | 5,466 | 5,473 | 7 |
| Employees (full-time basis) | 110,014 | 107,011 | -3,003 | 107,710 | 107,011 | -699 |
During the nine-month period of 2014/15, EBIT amounted to €759 million (9M 2013/14: €715 million). It includes special items totalling €23 million (9M 2013/14: €148 million). EBIT before special items amounted to €781 million (9M 2013/14: €864 million). This decline is due mostly to negative year-toyear currency effects of about €110 million in Russia. As a result, METRO Cash & Carry's EBIT improved in local currency terms.
In Q3 2014/15, EBIT before special items totalled €262 million (Q3 2013/14: €281 million). This figure includes negative currency effects of about €15 million. In addition, EBIT declined as a result of the earlier Easter business.
Between October 2014 and June 2015, investments in expansion and modernisation amounted to €285 million (9M 2013/14: €184 million). METRO Cash & Carry opened 17 stores during this period. The store networks in Russia and China were expanded by 9 and 4 stores, respectively. One store each was opened in Croatia, Serbia, Turkey and India, while one store each was disposed of in Italy, Bulgaria, Romania, Serbia and China. As announced, the 5 stores in Denmark were closed and the 9 stores in Greece were sold as planned.
As at 30 June 2015, METRO Cash & Carry operated 764 stores in 26 countries: 107 stores in Germany, 232 in Western Europe, 290 in Eastern Europe and 135 in Asia.
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) | Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | |
| Total | 16,045 | 16,655 | -1.3% | 3.8% | -1.3% | -0.9% | 0.0% | 4.7% | -1.6% | 3.2% |
| Germany | 7,498 | 7,652 | -1.5% | 2.1% | 0.0% | 0.0% | -1.5% | 2.1% | -2.8% | 1.4% |
| Western Europe (excl. Germany) |
6,407 | 6,758 | -0.2% | 5.5% | -0.3% | 0.7% | 0.1% | 4.8% | -0.5% | 3.3% |
| Eastern Europe | 2,140 | 2,245 | -1.3% | 4.9% | -9.2% | -9.6% | 7.9% | 14.5% | -0.6% | 10.1% |
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) | Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | |
| Total | 4,563 | 4,620 | 0.9% | 1.2% | -1.2% | 0.0% | 2.1% | 1.2% | -0.2% | 0.2% |
| Germany | 2,110 | 2,064 | 1.2% | -2.2% | 0.0% | 0.0% | 1.2% | -2.2% | -0.8% | -2.1% |
| Western Europe (excl. Germany) |
1,842 | 1,943 | -0.1% | 5.5% | -0.3% | 1.3% | 0.3% | 4.2% | -0.7% | 2.3% |
| Eastern Europe | 611 | 613 | 2.6% | 0.3% | -8.9% | -3.8% | 11.5% | 4.1% | 3.5% | 2.1% |
Media-Saturn sales between October 2014 and June 2015 rose by 3.8% to €16.7 billion. Sales in local currency even increased by 4.7%. Like-for-like sales were 3.2% higher, with Media-Saturn adding market share in 11 of 15 countries. Sales grew by 1.2% in Q3 (+1.2% also in local currency). Like-for-like sales were up 0.2%, the 4th consecutive quarterly increase. The perceived loss of momentum is due, in particular, to the fact that business was boosted by the 2014 Football World Cup.
Media-Saturn continued to push the targeted expansion of its online activities and the successful dovetailing of its sales channels. As a result, online sales rose markedly by 25% to €1.4 billion between October 2014 and June 2015, accounting for more than 8% of Media-Saturn's total sales. Online sales also grew during Q3, rising by more than 24% to €0.4 billion.
In Germany, sales increased by 2.1% to €7.7 billion between October 2014 and June 2015. Like-for-like sales increased by 1.4%. In Q3 2013/14, sales fell by 2.2%. Like-for-like sales were down by 2.1%. This development reflects short-term market weakness that is due, in particular, to the fact that business was boosted by the 2014 Football World Cup.
Media-Saturn's multi-channel offering is now fully integrated into the sales line's business. The online product range was expanded again and comprised about 130,000 items at Mediamarkt.de and about 120,000 at Saturn.de at the end of June 2015.
In Western Europe, sales increased markedly by 5.5% to €6.8 billion between October 2014 and June 2015. Like-for-like sales also increased noticeably by 3.3%. In Q3 2014/15, sales jumped by 5.5%. Like-for-like sales grew by 2.3%. Nearly all countries contributed to this sales growth.
In Eastern Europe, sales increased by 4.9% to €2.2 billion between October 2014 and June 2015. Sales in local currency even increased by 14.5%. Like-for-like sales also recorded very strong growth of 10.1%, with all countries posting higher likefor-like sales. Business in Eastern Europe continued to develop favourably during Q3 2014/15. However, sales increased only slightly by 0.3% due to currency effects. Sales in local currency, in turn, grew by 4.1%, with like-for-like sales growth reaching 2.1%. Following exceptionally strong growth in Russia resulting from strong pull-forward effects during Q1, business developed in sync with the overall economy again during Q2 and Q3. Hungary and Turkey developed very positively with double-digit likefor-like sales growth.
The international share in sales generated between October 2014 and June 2015 increased from 53.3% to 54.1%.
| € million | 9M 2013/14 | 9M 2014/15 | Change | Q3 2013/14 | Q3 2014/15 | Change |
|---|---|---|---|---|---|---|
| EBITDA | 362 | 445 | 22.9% | -33 | -15 | 56.1% |
| EBITDA before special items | 399 | 486 | 21.9% | -6 | -1 | 77.7% |
| EBIT | 168 | 258 | 53.1% | -97 | -74 | 24.1% |
| EBIT before special items | 205 | 309 | 50.9% | -70 | -60 | 13.8% |
| Investments | 161 | 135 | -16.0% | 54 | 54 | 0.4% |
| 30/09/2014 | 30/06/2015 | Change | 31/03/2015 | 30/06/2015 | Change | |
|---|---|---|---|---|---|---|
| Stores | 986 | 1,005 | 19 | 1,006 | 1,005 | -1 |
| Selling space (1,000 sqm) | 3,070 | 3,065 | -5 | 3,080 | 3,065 | -15 |
| Employees (full-time basis) | 57,689 | 57,342 | -347 | 57,616 | 57,342 | -274 |
EBIT rose markedly to €258 million between October 2014 and June 2015 (9M 2013/14: €168 million). This figure includes special items totalling €51 million (9M 2013/14: €37 million), which mostly relate to store-related restructuring measures. EBIT before special items amounted to €309 million (9M 2013/14: €205 million), a significant improvement of more than 50%. The strong increase was largely due to good like-for-like sales growth.
In Q3 2014/15, EBIT before special items improved to €-60 million (Q3 2013/14: €-70 million).
Capex amounted to €135 million between October 2014 and June 2015 (9M 2013/14: €161 million). A total of 25 consumer electronics stores were opened, including 6 each in Poland and the Netherlands, 5 in Russia, 3 in Spain, 2 in Turkey and 1 store each in Germany, Belgium and Switzerland. One store each was closed in Germany, Belgium and Russia and 3 stores were closed in Italy.
As at 30 June 2015, the store network of Media-Saturn comprised 1,005 stores in 15 countries: 415 consumer electronics stores in Germany, 374 in Western Europe and 216 in Eastern Europe.
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) | Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | |
| Total | 6,561 | 5,944 | -19.0% | -9.4% | -0.4% | 0.0% | -18.6% | -9.4% | -1.1% | -0.6% |
| Germany | 6,079 | 5,944 | -1.6% | -2.2% | 0.0% | 0.0% | -1.6% | -2.2% | -1.3% | -0.6% |
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) | Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | |
| Total | 2,053 | 1,885 | -13.0% | -8.2% | -0.4% | 0.0% | -12.6% | -8.2% | 5.1% | -3.7% |
| Germany | 1,990 | 1,885 | 4.7% | -5.3% | 0.0% | 0.0% | 4.7% | -5.3% | 5.1% | -3.7% |
As a result of the disposal of Real Eastern Europe, sales at Real declined by 9.4% to €5.9 billion between October 2014 and June 2015. The figure for the previous year's period still included sales of Real in Poland and Turkey until disposal.
Due partly to 6 store closures, sales of Real Germany declined by 2.2% to €5.9 billion during the nine-month period of 2014/15. Like-for-like sales declined slightly by 0.6%. In Q3 2014/15, the earlier Easter business and the strong previous year's quarter impacted sales, which fell by 5.3%. Like-for-like sales were down by 3.7%. Deflationary price developments continued, particularly in the "ultra-fresh produce" area.
Online sales doubled to €12 million during Q3 2014/15.
As the first retailer in Germany, Real introduced a dynamic pricing strategy during Q3 2014/15. As a result, Real now offers members of the customer loyalty programme direct price advantages. At the checkout, a discount is granted for more than 1,500 food products from all food categories.
In June, retail start-up company "Emmas Enkel" opened a digital store in Düsseldorf. Under the motto "Ganz einfach einkaufen", which roughly translates to "simple shopping", the monitor wall in market-stall design displays a seasonal selection of daily consumer items that can be scanned and ordered directly via a smartphone app.
| € million | 9M 2013/14 | 9M 2014/15 | Change | Q3 2013/14 | Q3 2014/15 | Change |
|---|---|---|---|---|---|---|
| EBITDA | 116 | 107 | -7.2% | 11 | 27 | - |
| EBITDA before special items | 154 | 151 | -2.1% | 30 | 38 | 28.8% |
| EBIT | -3 | -439 | - | -37 | -7 | 81.8% |
| EBIT before special items | 54 | 53 | -1.9% | -3 | 5 | - |
| Investments | 115 | 149 | 29.0% | 80 | 72 | -9.9% |
| 30/09/2014 | 30/06/2015 | Change | 31/03/2015 | 30/06/2015 | Change | |
|---|---|---|---|---|---|---|
| Stores | 311 | 301 | -10 | 302 | 301 | -1 |
| Selling space (1,000 sqm) | 2,145 | 2,080 | -65 | 2,078 | 2,080 | 2 |
| Employees (full-time basis) | 28,810 | 28,065 | -745 | 27,987 | 28,065 | 78 |
EBIT totalled €-439 million between October 2014 and June 2015 (9M 2013/14: €-3 million). This figure includes special items totalling €491 million (9M 2013/14: €57 million). In view of earnings developments, these items relate to goodwill impairments, in particular. Following long-term repositioning, Real posted impairment losses for goodwill resulting from company acquisitions that were completed 17 years ago. EBIT before special items amounted to €53 million (9M 2013/14: €54 million). The decline in EBIT in Germany was offset by positive effects from the sale of Real Eastern Europe.
In Q3 2014/15, EBIT before special items totalled €5 million (Q3 2013/14: €-3 million).
Capex between October 2014 and June 2015 amounted to €149 million (9M 2013/14: €115 million). A total of 32 stores were
remodelled in line with the new concept. As a result, the number of remodelled stores has risen to 82. In addition, remodelling work on an additional 25 stores was initiated during Q3. These stores will reopen under the new concept during Q4.
As announced, 6 hypermarkets have been closed in Germany since October 2014. As a result, the German sales network comprised 301 stores as at 30 June 2015.
Real ended its commitment to the collective bargaining agreement in June 2015. Real offered to negotiate an in-house collective agreement with the union.
| € million | 9M 2013/14 | 9M 2014/15 | Change | Q3 2013/14 | Q3 2014/15 | Change |
|---|---|---|---|---|---|---|
| Sales | 8 | 40 | - | 3 | 14 | - |
| EBITDA | 113 | 25 | -77.4% | 74 | 36 | -52.2% |
| EBITDA before special items | 125 | 42 | -66.6% | 82 | 37 | -54.3% |
| EBIT | -12 | -93 | - | 42 | 0 | - |
| EBIT before special items | 4 | -68 | - | 47 | 1 | -97.0% |
| Investments | 98 | 88 | -10.3% | 23 | 24 | 4.6% |
| 30/09/2014 | 30/06/2015 | Change | 31/03/2015 | 30/06/2015 | Change |
|---|---|---|---|---|---|
| Employees (full-time basis) 8,970 |
9,478 | 508 | 9,505 | 9,478 | -27 |
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 (i.e. speciality stores, warehouses, head offices, etc.).
Between October 2014 and June 2015, sales in the Others segment totalled €40 million (9M 2013/14: €8 million). Since the first quarter of 2014/15, sales include, among other things, the 4 Real stores in Romania and commissions from the thirdparty business operated by METRO GROUP's Hong Kong-based purchasing organisation.
EBIT totalled €-93 million in the first nine months (9M 2013/14: €-12 million). Special items amounted to €24 million and relate, in particular, to non-recurring expenses in connection with real estate activities. EBIT before special items amounted to €- 68 million (9M 2013/14: €4 million). In Q3 2014/15, EBIT before special items came to €1 million (Q3 2013/14: €47 million). It is important to note here that the sale of office buildings in Düsseldorf had a distinctly positive impact on the previous year's figure. The figure for the reporting quarter includes income from real estate assets resulting from the sale of Südring Center Rangsdorf, south of Berlin, which, however, are markedly lower than income from real estate assets recorded in the previous year's quarter. In addition, consulting fees increased.
| Sales (€ million) | Change | Like-for-like | |||||
|---|---|---|---|---|---|---|---|
| 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | ||
| Total | 2,378 | 2,334 | -1.9% | 0.4% | -1.5% | ||
| Sales (€ million) | Change | Like-for-like | |||||
|---|---|---|---|---|---|---|---|
| Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | ||
| Total | 694 | 667 | 2.2% | -3.9% | 2.2% | -2.6% |
Discontinued operations relate to Galeria Kaufhof. Sales between October 2014 and June 2015 declined by 1.9% to €2.3 billion. Like-for-like sales decreased by 1.5%. In particular, the downswing in the textile market was felt here. In Q3, the earlier Easter business impacted sales, which fell by 3.9%. Like-for-like sales declined by 2.6%.
| € million | 9M 2013/14 | 9M 2014/15 | Change | Q3 2013/14 | Q3 2014/15 | Change |
|---|---|---|---|---|---|---|
| EBITDA | 270 | 204 | -24.5% | 52 | 39 | -25.1% |
| EBIT | 182 | 116 | -36.3% | 22 | 9 | -57.9% |
| Investments | 143 | 98 | -31.6% | 25 | 64 | - |
| 30/09/2014 | 30/06/2015 | Change | 31/03/2015 | 30/06/2015 | Change | |
|---|---|---|---|---|---|---|
| Stores | 137 | 134 | -3 | 135 | 134 | -1 |
| Selling space (1,000 sqm) | 1,444 | 1,419 | -25 | 1,428 | 1,419 | -9 |
| Employees (full-time basis) | 17,330 | 17,008 | -322 | 17,034 | 17,008 | -26 |
EBIT totalled €116 million between October 2014 and June 2015 (9M 2013/14: €182 million). In Q3 2014/15, EBIT totalled €9 million (Q3 2013/14: €22 million). This decline is due, in particular, to the earlier Easter business and negative developments in the textile area.
As announced, 4 stores were closed in Germany and 1 department store was opened in Belgium.
As at 30 June 2015, the store network of Galeria Kaufhof comprised 134 stores: 118 in Germany and 16 in Belgium.
During the nine-month period of 2014/15, capex amounted to €98 million (9M 2013/14: €143 million).
On 22 July 2015, METRO GROUP announced the sale of a majority holding in 10 Real hypermarkets to Carlton Investment, Berlin, by its real estate subsidiary METRO PROPERTIES as part of a joint venture. METRO PROPERTIES continues to hold a stake of 40% in the portfolio. The real estate assets make up the so-called "Sokrates" portfolio, which METRO PROPERTIES repurchased from the DELEK group in 2014 to continue the targeted optimisation and strategic positioning of Real's store portfolio. The book value of the divested real estate assets amounts to a figure in the low triple-digit millions.
On 4 August 2015, METRO AG announced that Mr. Dr. Wulf H. Bernotat, being a member of the supervisory board of METRO AG since May 2003, decided to resign as supervisory board member as of 4 September 2015. METRO AG's management board will file an application for the appointment of Mr. Jürgen B. Steinemann as member of the supervisory board, with limitation to the completion of the ordinary shareholders' meeting on 19 February 2016. Since 2009, Mr. Steinemann is CEO of Barry Callebaut AG, Zurich/Switzerland ("Barry Callebaut"). The company is one of the world's largest manufacturers of chocolate and cocoa products. As scheduled, Mr. Steinemann will withdraw from his role as CEO at Barry Callebaut by the end of September 2015 and continue to work as deputy president of the administrative board.
Under an agreement signed 6 August 2015, METRO Cash & Carry International Holding B.V. and Klassisk Holding Limited agreed on the purchase of Klassisk Investment Limited including all subsidiaries. The group operates under the brand Classic Fine Foods (CFF), is a leading player in the premium food service distribution business and is predominantly present in major cities in Asia. CFF is located in Singapore and generated sales of more than US\$200 million in calendar year 2014. The group occupies around 800 employees in 14 countries.
Despite stronger short-term momentum, global economic developments remain fragile. In the Eurozone, lower energy prices, euro devaluation and lower interest rates continue to provide for good short-term growth prospects, As a result, leading indicators continue to send out growth signals. Over the medium term, however, structural weakness - particularly in France and Italy - will serve to constrain the region's growth momentum. At the same time, public indebtedness - not only in Greece - will continue to impact medium-term growth prospects. Compared with past years, METRO GROUP expects the Western European retail industry to show solid nominal growth of about 1%. In Germany, robust labour market conditions and low prices continue to bolster conditions for consumption and retailing. As a result, Germany's retail industry is expected to outperform the Western European average again in this financial year. In Eastern Europe, the Russia-Ukraine conflict continues to dominate the headlines. Russia continues to struggle with a difficult economic environment marked by a weak domestic economy. In contrast, METRO GROUP projects robust economic developments in the Central European countries. In spite of China's loss of economic momentum, Asia's emerging markets will remain the fastest-growing region for METRO GROUP. In the near future, Japan's economy will remain dependent on expansionary monetary and fiscal policies, which exacerbates long-term problems related to the country's high public indebtedness. METRO GROUP expects global economic growth to fall slightly short of the previous year's growth rate of 2.4% in 2015.
Due to the announced sale of Galeria Kaufhof, the outlook is now based on continuing operations. The forecast continues to be based on currency-adjusted figures. In addition, it is based on the assumption of an unchanged geopolitical situation from the half-year report for H1 2014/15.
For financial year 2014/15, METRO GROUP expects to see a slight rise in overall sales of continuing operations, despite the persistently challenging economic environment.
In like-for-like sales, METRO GROUP foresees a slight increase that will follow the 0.1% gain in the previous year.
In financial year 2014/15, earnings development will also be shaped by the persistently challenging economic environment.
Given the progress made so far, METRO GROUP will continue to realign its business models with a focus on efficient structures and strict cost control.
For these reasons, METRO GROUP expects EBIT before special items from continuing operations adjusted for currency effects to rise slightly above the €1,531 million produced in financial year 2013/14, including typical levels of net income from real estate sales. Developments in the different sales lines are expected to diverge.
| 30/09/2014 | New store openings/ additions 9M 2014/15 |
Closures/ disposals 9M 2014/15 |
30/06/2015 | Change (absolute) |
|---|---|---|---|---|
| METRO Cash & Carry 766 |
+17 | -19 | 764 | -2 |
| Media-Saturn 986 |
+25 | -6 | 1,005 | +19 |
| Real 307 |
+0 | -6 | 301 | -6 |
| Total 2,063* |
+42 | -31 | 2,074* | +11 |
| Discontinued operations 137 |
+1 | -4 | 134 | -3 |
*Including 4 stores in the Others segment
| METRO Cash & Carry | Media-Saturn | Real | METRO GROUP | Discontinued operations | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 9M 2014/15 | 30/6/2015 | 9M 2014/15 | 30/6/2015 | 9M 2014/15 | 30/6/2015 | 9M 2014/15 | 30/6/2015 | 9M 2014/15 | 30/6/2015 | |
| Germany | 107 | +0 | 415 | -6 | 301 | -6 | 823 | -4 | 118 | |
| Austria | 12 | 47 | 59 | |||||||
| Belgium | 15 | +0 | 23 | +0 | 38 | +1 | 16 | |||
| Denmark | -5 | 0 | -5 | 0 | ||||||
| France | 93 | 93 | ||||||||
| Italy | -1 | 48 | -3 | 114 | -4 | 162 | ||||
| Luxembourg | 2 | 2 | ||||||||
| Netherlands | 17 | +6 | 51 | +6 | 68 | |||||
| Portugal | 10 | 9 | 19 | |||||||
| Spain | 37 | +3 | 75 | +3 | 112 | |||||
| Sweden | 27 | 27 | ||||||||
| Switzerland | +1 | 26 | +1 | 26 | ||||||
| Western Europe (excl. Germany) |
-6 | 232 | +7 | 374 | +1 | 606 | +1 | 16 | ||
| Bulgaria | -1 | 13 | -1 | 13 | ||||||
| Croatia | +1 | 8 | +1 | 8 | ||||||
| Czech Republic | 13 | 13 | ||||||||
| Greece | -9 | 10 | -9 | 10 | ||||||
| Hungary | 13 | 21 | 34 | |||||||
| Kazakhstan | 8 | 8 | ||||||||
| Moldova | 3 | 3 | ||||||||
| Poland | 41 | +6 | 77 | +6 | 118 | |||||
| Romania | -1 | 31 | -1 | 31 | ||||||
| Russia | +9 | 82 | +4 | 67 | +13 | 149 | ||||
| Serbia | 10 | 10 | ||||||||
| Slovakia | 6 | 6 | ||||||||
| Turkey | +1 | 29 | +2 | 41 | +3 | 70 | ||||
| Ukraine | 33 | 33 | ||||||||
| Eastern Europe | +0 | 290 | +12 | 216 | +0 | +12 | 506 | |||
| China | +3 | 81 | +3 | 81 | ||||||
| India | +1 | 17 | +1 | 17 | ||||||
| Japan | 9 | 9 | ||||||||
| Pakistan | 9 | 9 | ||||||||
| Vietnam | 19 | 19 | ||||||||
| Asia | +4 | 135 | +4 | 135 | ||||||
| Total | -2 | 764 | +19 | 1,005 | -6 | 301 | +11 | 2,074* | -3 | 134 |
*Including 4 stores in the Others segment
9M 2014/15
by sales line
| As reported | Special items | Before special items | |||||
|---|---|---|---|---|---|---|---|
| € million EBITDA |
9M 2013/14 1,741 |
9M 2014/15 1,657 |
9M 2013/14 114 |
9M 2014/15 106 |
9M 2013/14 1,854 |
9M 2014/15 1,763 |
|
| thereof METRO Cash & Carry | 1,152 | 1,080 | 28 | 5 | 1,180 | 1,084 | |
| Media-Saturn | 362 | 445 | 37 | 41 | 399 | 486 | |
| Real | 116 | 107 | 39 | 44 | 154 | 151 | |
| Others | 113 | 25 | 12 | 16 | 125 | 42 | |
| Consolidation | -2 | -1 | -2 | 0 | -4 | -1 | |
| EBIT | 872 | 487 | 255 | 590 | 1,127 | 1,076 | |
| thereof METRO Cash & Carry | 715 | 759 | 148 | 23 | 864 | 781 | |
| Media-Saturn | 168 | 258 | 37 | 51 | 205 | 309 | |
| Real | -3 | -439 | 57 | 491 | 54 | 53 | |
| Others | -12 | -93 | 16 | 24 | 4 | -68 | |
| Consolidation | 3 | 2 | -2 | 0 | 1 | 2 | |
| Net financial result | -418 | -275 | 42 | 5 | -376 | -269 | |
| EBT (earnings before taxes) | 454 | 212 | 298 | 595 | 751 | 807 | |
| Income taxes | -476 | -139 | 49 | -318 | -426 | -456 | |
| Profit or loss for the period from continuing operations | -22 | 73 | 346 | 277 | 325 | 351 | |
| Profit or loss for the period from discontinued operations after tax | 182 | 85 | 0 | 10 | 181 | 94 | |
| Profit or loss for the period | 160 | 158 | 346 | 287 | 506 | 445 | |
| Profit or loss for the period attributable to non-controlling interests | 41 | 33 | 10 | 11 | 52 | 45 | |
| from continuing operations | 40 | 33 | 10 | 11 | 51 | 45 | |
| from discontinued operations | 1 | 0 | 0 | 0 | 1 | 0 | |
| Profit or loss for the period attributable to shareholders of METRO AG | 119 | 125 | 336 | 276 | 454 | 400 | |
| from continuing operations | -62 | 40 | 336 | 266 | 274 | 306 | |
| from discontinued operations | 181 | 85 | 0 | 10 | 180 | 94 | |
| Earnings per share in € (basic = diluted) | 0.36 | 0.38 | 1.03 | 0.85 | 1.39 | 1.23 | |
| from continuing operations | -0.19 | 0.12 | 1.03 | 0.82 | 0.84 | 0.94 | |
| from discontinued operations | 0.55 | 0.26 | 0.00 | 0.03 | 0.55 | 0.29 | |
9M 2014/15
by region
| As reported | Special items | Before special items | |||||
|---|---|---|---|---|---|---|---|
| € million | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | |
| EBITDA | 1,741 | 1,657 | 114 | 106 | 1,854 | 1,763 | |
| thereof Germany | 531 | 415 | 85 | 62 | 617 | 477 | |
| Western Europe (excl. Germany) | 421 | 475 | 35 | 37 | 457 | 512 | |
| Eastern Europe | 713 | 656 | -12 | 11 | 701 | 667 | |
| Asia/Africa | 77 | 116 | 5 | -5 | 82 | 111 | |
| Consolidation | -2 | -4 | 0 | 0 | -2 | -4 | |
| EBIT | 872 | 487 | 255 | 590 | 1,127 | 1,076 | |
| thereof Germany | 192 | -365 | 91 | 518 | 283 | 153 | |
| Western Europe (excl. Germany) | 138 | 310 | 154 | 44 | 291 | 354 | |
| Eastern Europe | 508 | 481 | 3 | 23 | 511 | 504 | |
| Asia/Africa | 36 | 64 | 7 | 5 | 43 | 69 | |
| Consolidation | -2 | -4 | 0 | 0 | -2 | -4 | |
| Net financial result | -418 | -275 | 42 | 5 | -376 | -269 | |
| EBT (earnings before taxes) | 454 | 212 | 298 | 595 | 751 | 807 | |
| Income taxes | -476 | -139 | 49 | -318 | -426 | -456 | |
| Profit or loss for the period from continuing operations | -22 | 73 | 346 | 277 | 325 | 351 | |
| Profit or loss for the period from discontinued operations after tax | 182 | 85 | 0 | 10 | 181 | 94 | |
| Profit or loss for the period | 160 | 158 | 346 | 287 | 506 | 445 | |
| Profit or loss for the period attributable to non-controlling interests | 41 | 33 | 10 | 11 | 52 | 45 | |
| from continuing operations | 40 | 33 | 10 | 11 | 51 | 45 | |
| from discontinued operations | 1 | 0 | 0 | 0 | 1 | 0 | |
| Profit or loss for the period attributable to shareholders of METRO AG | 119 | 125 | 336 | 276 | 454 | 400 | |
| from continuing operations | -62 | 40 | 336 | 266 | 274 | 306 | |
| from discontinued operations | 181 | 85 | 0 | 10 | 180 | 94 | |
| Earnings per share in € (basic = diluted) | 0.36 | 0.38 | 1.03 | 0.85 | 1.39 | 1.23 | |
| from continuing operations | -0.19 | 0.12 | 1.03 | 0.82 | 0.84 | 0.94 | |
| from discontinued operations | 0.55 | 0.26 | 0.00 | 0.03 | 0.55 | 0.29 | |
Q3 2014/15
by sales line
| As reported | Special items | Before special items | ||||
|---|---|---|---|---|---|---|
| € million | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 |
| EBITDA | 435 | 409 | 51 | 26 | 486 | 435 |
| thereof METRO Cash & Carry | 385 | 362 | -2 | -1 | 383 | 361 |
| Media-Saturn | -33 | -15 | 27 | 13 | -6 | -1 |
| Real | 11 | 27 | 18 | 12 | 30 | 38 |
| Others | 74 | 36 | 7 | 2 | 82 | 37 |
| Consolidation | -3 | 0 | 0 | 0 | -3 | 0 |
| EBIT | 171 | 175 | 83 | 35 | 253 | 209 |
| thereof METRO Cash & Carry | 265 | 255 | 16 | 8 | 281 | 262 |
| Media-Saturn | -97 | -74 | 27 | 14 | -70 | -60 |
| Real | -37 | -7 | 34 | 12 | -3 | 5 |
| Others | 42 | 0 | 5 | 2 | 47 | 1 |
| Consolidation | -2 | 1 | 0 | 0 | -2 | 1 |
| Net financial result | -110 | -110 | 7 | 15 | -102 | -94 |
| EBT (earnings before taxes) | 61 | 65 | 90 | 50 | 151 | 115 |
| Income taxes | -161 | 25 | 88 | -138 | -73 | -113 |
| Profit or loss for the period from continuing operations | -100 | 90 | 178 | -88 | 78 | 2 |
| Profit or loss for the period from discontinued operations after tax | 17 | 7 | 0 | -1 | 17 | 5 |
| Profit or loss for the period | -83 | 97 | 178 | -89 | 95 | 7 |
| Profit or loss for the period attributable to non-controlling interests | -20 | -18 | 9 | 3 | -11 | -15 |
| from continuing operations | -20 | -18 | 9 | 3 | -11 | -15 |
| from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit or loss for the period attributable to shareholders of METRO AG | -63 | 115 | 169 | -93 | 106 | 22 |
| from continuing operations | -80 | 108 | 169 | -92 | 89 | 17 |
| from discontinued operations | 17 | 7 | 0 | -1 | 17 | 5 |
| Earnings per share in € (basic = diluted) | -0.19 | 0.35 | 0.51 | -0.28 | 0.32 | 0.07 |
| from continuing operations | -0.24 | 0.33 | 0.51 | -0.28 | 0.27 | 0.05 |
| from discontinued operations | 0.05 | 0.02 | 0.00 | 0.00 | 0.05 | 0.02 |
Q3 2014/15
by region
| As reported | Special items | Before special items | |||||
|---|---|---|---|---|---|---|---|
| € million EBITDA |
Q3 2013/14 435 |
Q3 2014/15 409 |
Q3 2013/14 51 |
Q3 2014/15 26 |
Q3 2013/14 486 |
Q3 2014/15 435 |
|
| thereof Germany | 116 | 69 | 44 | 14 | 160 | 82 | |
| Western Europe (excl. Germany) | 109 | 121 | 9 | 22 | 118 | 143 | |
| Eastern Europe | 184 | 183 | 0 | 2 | 184 | 185 | |
| Asia/Africa | 26 | 36 | -3 | -12 | 24 | 25 | |
| Consolidation | 0 | 0 | 0 | 0 | 0 | 0 | |
| EBIT | 171 | 175 | 83 | 35 | 253 | 209 | |
| thereof Germany | 10 | -39 | 44 | 14 | 54 | -25 | |
| Western Europe (excl. Germany) | 38 | 73 | 25 | 22 | 64 | 95 | |
| Eastern Europe | 109 | 119 | 14 | 11 | 123 | 129 | |
| Asia/Africa | 13 | 22 | -1 | -12 | 12 | 10 | |
| Consolidation | 0 | 0 | 0 | 0 | 0 | 0 | |
| Net financial result | -110 | -110 | 7 | 15 | -102 | -94 | |
| EBT (earnings before taxes) | 61 | 65 | 90 | 50 | 151 | 115 | |
| Income taxes | -161 | 25 | 88 | -138 | -73 | -113 | |
| Profit or loss for the period from continuing operations | -100 | 90 | 178 | -88 | 78 | 2 | |
| Profit or loss for the period from discontinued operations after tax | 17 | 7 | 0 | -1 | 17 | 5 | |
| Profit or loss for the period | -83 | 97 | 178 | -89 | 95 | 7 | |
| Profit or loss for the period attributable to non-controlling interests | -20 | -18 | 9 | 3 | -11 | -15 | |
| from continuing operations | -20 | -18 | 9 | 3 | -11 | -15 | |
| from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profit or loss for the period attributable to shareholders of METRO AG | -63 | 115 | 169 | -93 | 106 | 22 | |
| from continuing operations | -80 | 108 | 169 | -92 | 89 | 17 | |
| from discontinued operations | 17 | 7 | 0 | -1 | 17 | 5 | |
| Earnings per share in € (basic = diluted) | -0.19 | 0.35 | 0.51 | -0.28 | 0.32 | 0.07 | |
| from continuing operations | -0.24 | 0.33 | 0.51 | -0.28 | 0.27 | 0.05 | |
| from discontinued operations | 0.05 | 0.02 | 0.00 | 0.00 | 0.05 | 0.02 | |
| € million | 9M 2013/14 | 9M 2014/15 | Q3 2013/14 | Q3 2014/15 |
|---|---|---|---|---|
| Sales | 45,532 | 44,977 | 14,168 | 13,967 |
| Cost of sales | -36,715 | -36,224 | -11,477 | -11,244 |
| Gross profit on sales | 8,817 | 8,753 | 2,691 | 2,723 |
| Other operating income | 982 | 848 | 356 | 278 |
| Selling expenses | -7,844 | -7,599 | -2,555 | -2,474 |
| General administrative expenses | -965 | -1,027 | -309 | -337 |
| Other operating expenses | -118 | -488 | -12 | -15 |
| Earnings before interest and taxes EBIT | 872 | 487 | 171 | 175 |
| Result from associates and joint ventures | 5 | 3 | 5 | 3 |
| Other investment result | 5 | 0 | 1 | 0 |
| Interest income | 46 | 45 | 11 | 11 |
| Interest expenses | -339 | -257 | -114 | -75 |
| Other financial result | -135 | -66 | -13 | -49 |
| Net financial result | -418 | -275 | -110 | -110 |
| EBT (earnings before taxes) | 454 | 212 | 61 | 65 |
| Income taxes | -476 | -139 | -161 | 25 |
| Profit or loss for the period from continuing operations | -22 | 73 | -100 | 90 |
| Profit or loss for the period from discontinued operations | 182 | 85 | 17 | 7 |
| Profit or loss for the period | 160 | 158 | -83 | 97 |
| Profit or loss for the period attributable to non-controlling interests | 41 | 33 | -20 | -18 |
| from continuing operations | 40 | 33 | -20 | -18 |
| from discontinued operations | 1 | 0 | 0 | 0 |
| Profit or loss for the period attributable to shareholders of METRO AG | 119 | 125 | -63 | 115 |
| from continuing operations | -62 | 40 | -80 | 108 |
| from discontinued operations | 181 | 85 | 17 | 7 |
| Earnings per share in € (basic = diluted) | 0.36 | 0.38 | -0.19 | 0.35 |
| from continuing operations | -0.19 | 0.12 | -0.24 | 0.33 |
| from discontinued operations | 0.55 | 0.26 | 0.05 | 0.02 |
| 9M 2013/14 | 9M 2014/15 | Q3 2013/14 | Q3 2014/15 |
|---|---|---|---|
| 160 | 158 | -83 | 97 |
| -128 | 59 | -63 | 209 |
| -181 | 83 | -89 | 296 |
| 53 | -24 | 26 | -87 |
| -108 | -123 | -30 | -79 |
| -119 | -116 | 26 | -64 |
| 7 | -7 | 3 | -15 |
| 1 | 0 | -59 | 0 |
| 3 | 0 | 0 | 0 |
| -236 | -64 | -93 | 130 |
| -76 | 94 | -176 | 227 |
| 45 | 33 | -18 | -19 |
| -121 | 61 | -158 | 246 |
Assets
| € million | 30/09/2014 | 30/06/2014 | 30/06/2015 |
|---|---|---|---|
| Non-current assets | 15,572 | 15,902 | 12,760 |
| Goodwill | 3,671 | 3,671 | 3,121 |
| Other intangible assets | 380 | 367 | 335 |
| Property, plant and equipment | 10,025 | 10,164 | 8,039 |
| Investment properties | 223 | 151 | 165 |
| Financial assets | 71 | 323 | 72 |
| Investments accounted for using the equity method | 95 | 94 | 94 |
| Other financial and non-financial assets | 272 | 311 | 280 |
| Deferred tax assets | 835 | 821 | 654 |
| Current assets | 12,584 | 12,930 | 14,729 |
| Inventories | 5,946 | 6,265 | 5,897 |
| Trade receivables | 560 | 634 | 592 |
| Financial assets | 1 | 3 | 6 |
| Other financial and non-financial assets | 2,9811 | 3,1621 | 3,256 |
| Entitlements to income tax refunds | 223 | 226 | 452 |
| Cash and cash equivalents | 2,406 | 2,357 | 1,691 |
| Assets held for sale | 4671 | 283 | 2,835 |
| 28,156 | 28,832 | 27,489 |
| € million | 30/09/2014 | 30/06/2014 | 30/06/2015 |
|---|---|---|---|
| Equity | 4,999 | 5,044 | 4,694 |
| Share capital | 835 | 835 | 835 |
| Capital reserve | 2,551 | 2,551 | 2,551 |
| Reserves retained from earnings | 1,602 | 1,661 | 1,321 |
| Non-controlling interests | 11 | -3 | -13 |
| Non-current liabilities | 6,921 | 7,067 | 6,520 |
| Provisions for post-employment benefits plans and similar obligations | 1,684 | 1,696 | 1,273 |
| Other provisions | 478 | 464 | 343 |
| Financial liabilities | 4,453 | 4,600 | 4,680 |
| Other financial and non-financial liabilities | 176 | 162 | 147 |
| Deferred tax liabilities | 130 | 145 | 77 |
| Current liabilities | 16,236 | 16,721 | 16,275 |
| Trade liabilities | 10,0751 | 9,9591 | 9,398 |
| Provisions | 615 | 530 | 522 |
| Financial liabilities | 2,615 | 3,559 | 2,563 |
| Other financial and non-financial liabilities | 2,528 | 2,396 | 2,252 |
| Income tax liabilities | 198 | 197 | 81 |
| Liabilities related to assets held for sale | 2051 | 80 | 1,459 |
| 28,156 | 28,832 | 27,489 |
1Adjustment of previous year (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements")
| € million | 9M 2013/14 | 9M 2014/15 |
|---|---|---|
| EBIT | 872 | 487 |
| Depreciation/amortisation/impairment losses/reversal of impairment losses of assets excl. financial investments |
869 | 1,170 |
| Change in provisions for post-employment benefits plans and similar obligations | -32 | -65 |
| Change in net working capital | -403 | -682 |
| Income taxes paid | -293 | -438 |
| Reclassification of gains (-) / losses (+) from the disposal of fixed assets | -77 | -51 |
| Other | -1451 | 53 |
| Cash flow from operating activities of continuing operations | 791 | 474 |
| Cash flow from operating activities of discontinued operations | 167 | 168 |
| Cash flow from operating activities | 958 | 642 |
| Corporate acquisitions | 0 | -10 |
| Investments in property, plant and equipment (excl. finance leases) | -561 | -675 |
| Other investments | -237 | -495 |
| Divestments | -66 | 65 |
| Disposal of fixed assets | 34 | 46 |
| Gains (+) / losses (-) from the disposal of fixed assets | 77 | 51 |
| Cash flow from investing activities of continuing operations | -753 | -1,018 |
| Cash flow from investing activities of discontinued operations | -71 | -58 |
| Cash flow from investing activities | -824 | -1,076 |
| Profit distribution | ||
| to METRO AG shareholders | 0 | -3162 |
| to other shareholders | -81 | -443 |
| Redemption of liabilities from put options of non-controlling interests | -1 | 0 |
| Proceeds from long-term borrowings | 2,470 | 2,682 |
| Redemption of borrowings | -2,299 | -2,287 |
| Interest paid | -322 | -273 |
| Interest received | 45 | 43 |
| Profit and loss transfers and other financing activities | -27 | 32 |
| Cash flow from financing activities of continuing operations | -215 | -163 |
| Cash flow from financing activities of discontinued operations | -93 | -111 |
| Cash flow from financing activities | -308 | -274 |
| Total cash flows | -174 | -708 |
| Currency effects on cash and cash equivalents | -11 | 11 |
| Total change in cash and cash equivalents | -185 | -697 |
| Cash and cash equivalents as at 1 October | 2,564 | 2,408 |
| Cash and cash equivalents shown under IFRS 5 assets | -221 | -22 |
| Cash and cash equivalents on 1 October | 2,542 | 2,386 |
| Cash and cash equivalents as at 30 June | 2,379 | 1,711 |
| Cash and cash equivalents shown under IFRS 5 assets | -221 | -20 |
| Cash and cash equivalents as at 30 June | 2,357 | 1,691 |
1Revised separate disclosures of cash and cash equivalents shown in IFRS 5 Assets.
2The reported dividend includes dividends to non-controlling interests in the amount of about €21 million whose interests are shown fully as debt capital due to put options 3The reported dividend includes dividends to non-controlling interests in the amount of about €6 million whose interests are shown fully as debt capital due to put options
| € million | Share capital | Capital reserve | Effective portion of gains/losses from cash flow hedges |
Gains/losses on remeasuring financial instruments in the category "available for sale" |
Currency translation differences from translating the financial statements of foreign operations |
Remeasurement of defined benefit pension plans |
Income tax attributable to components of "other comprehensive income" |
|---|---|---|---|---|---|---|---|
| 01/10/2013 | 835 | 2,551 | 61 | 70 | -407 | -611 | 174 |
| Dividends | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total comprehensive income | 0 | 0 | 7 | 1 | -123 | -181 | 56 |
| Capital balance from acquisitions of shares |
0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other changes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 30/06/2014 | 835 | 2,551 | 68 | 71 | -530 | -792 | 230 |
| 01/10/2014 | 835 | 2,551 | 82 | 0 | -441 | -865 | 201 |
| Dividends | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total comprehensive income | 0 | 0 | -7 | 0 | -116 | 83 | -24 |
| Capital balance from acquisitions of shares |
0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other changes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 30/06/2015 | 835 | 2,551 | 75 | 0 | -557 | -782 | 177 |
Continued statement of changes in equity
| € million | Other reserves retained from earnings |
Total reserves retained from earnings |
Total equity before non-controlling interests |
Attributable to "other comprehensive income" |
Non-controlling interests |
Attributable to "other comprehensive income" |
Total equity |
|---|---|---|---|---|---|---|---|
| 01/10/2013 | 2,506 | 1,793 | 5,179 | 27 | 5,206 | ||
| Dividends | 0 | 0 | 0 | -81 | -81 | ||
| Total comprehensive income | 119 | -121 | -121 | (-240) | 45 | (4) | -76 |
| Capital balance from acquisitions of shares |
-4 | -4 | -4 | 1 | -3 | ||
| Other changes | -7 | -7 | -7 | 5 | -2 | ||
| 30/06/2014 | 2,614 | 1,661 | 5,047 | - | -3 | 5,044 | |
| 01/10/2014 | 2,625 | 1,602 | 4,988 | 11 | 4,999 | ||
| Dividends | -3161 | -316 | -316 | -442 | -360 | ||
| Total comprehensive income | 125 | 61 | 61 | (-64) | 33 | (0) | 94 |
| Capital balance from acquisitions of shares |
0 | 0 | 0 | -1 | -1 | ||
| Other changes | -26 | -26 | -26 | -12 | -38 | ||
| 30/06/2015 | 2,408 | 1,321 | 4,707 | - | -13 | 4,694 |
1The reported dividend includes dividends to non-controlling interests in the amount of about €21 million whose interests are shown fully as debt capital due to put options 2The reported dividend includes dividends to non-controlling interests in the amount of about €6 million whose interests are shown fully as debt capital due to put options
| Operating segments | Continuing operations of the Group | |||||||
|---|---|---|---|---|---|---|---|---|
| METRO Cash & Carry | Media-Saturn | Real | Others | |||||
| € million | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 |
| External sales (net) | 22,918 | 22,338 | 16,045 | 16,655 | 6,561 | 5,944 | 8 | 40 |
| Internal sales (net) | 38 | 9 | 2 | 1 | 0 | 5 | 4,425 | 648 |
| Sales (net) | 22,955 | 22,347 | 16,047 | 16,656 | 6,561 | 5,949 | 4,433 | 688 |
| EBITDA | 1,152 | 1,080 | 362 | 445 | 116 | 107 | 113 | 25 |
| Depreciation/amortisation/impairment | 437 | 328 | 196 | 188 | 119 | 546 | 124 | 119 |
| Reversals of impairment losses | 0 | 7 | 2 | 1 | 0 | 0 | 0 | 1 |
| EBIT | 715 | 759 | 168 | 258 | -3 | -439 | -12 | -93 |
| Investments | 184 | 285 | 161 | 135 | 115 | 149 | 98 | 88 |
| Segment assets | 11,5752 | 11,298 | 5,3842 | 5,431 | 3,289 | 2,860 | 2,544 | 2,092 |
| thereof non-current | (8,058) | (7,643) | (1,583) | (1,454) | (2,065) | (1,682) | (1,390) | (1,201) |
| Segment liabilities | 5,3492 | 5,360 | 5,6372 | 5,633 | 1,118 | 1,342 | 2,170 | 1,474 |
| Selling space (1,000 sqm) | 5,616 | 5,473 | 3,088 | 3,065 | 2,258 | 2,080 | 0 | 29 |
| Locations (number) | 763 | 764 | 988 | 1,005 | 324 | 301 | 0 | 4 |
| Operating segments continued | Continuing operations of the Group | |||||||
|---|---|---|---|---|---|---|---|---|
| Consolidation | METRO GROUP | |||||||
| € million | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | ||
| External sales (net) | 0 | 0 | 45,532 | 44,977 | 2,378 | 2,334 | ||
| Internal sales (net) | -4,464 | -664 | 0 | 0 | 0 | 0 | ||
| Sales (net) | -4,464 | -664 | 45,532 | 44,977 | 2,378 | 2,334 | ||
| EBITDA | -2 | -1 | 1,741 | 1,657 | 270 | 204 | ||
| Depreciation/amortisation/impairment | -5 | -3 | 871 | 1,178 | 88 | 88 | ||
| Reversals of impairment losses | 0 | 0 | 2 | 8 | 0 | 0 | ||
| EBIT | 3 | 2 | 872 | 487 | 182 | 116 | ||
| Investments | 0 | 0 | 558 | 656 | 143 | 98 | ||
| Segment assets | -531 | -441 | 22,2622 | 21,240 | 2,158 | 2,173 | ||
| thereof non-current | (-51) | (-41) | (13,045) | (11,938) | (1,610) | (1,652) | ||
| Segment liabilities | -441 | -346 | 13,8322 | 13,464 | 765 | 741 | ||
| Selling space (1,000 sqm) | 0 | 0 | 10,962 | 10,648 | 1,444 | 1,419 | ||
| Locations (number) | 0 | 0 | 2,075 | 2,074 | 137 | 134 |
1Adjustment due to discontinued operations (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements") 2Adjustment of previous year (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements")
| Western Europe | ||||||||
|---|---|---|---|---|---|---|---|---|
| Germany | (excl. Germany) | Eastern Europe | Asia/Africa | |||||
| € million | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 |
| External sales (net) | 17,231 | 17,180 | 14,323 | 14,430 | 11,234 | 10,126 | 2,743 | 3,241 |
| Internal sales (net) | 156 | 125 | 98 | 122 | 12 | 7 | 24 | 24 |
| Sales (net) | 17,388 | 17,305 | 14,421 | 14,552 | 11,247 | 10,133 | 2,767 | 3,265 |
| EBITDA | 531 | 415 | 421 | 475 | 713 | 656 | 77 | 116 |
| Depreciation/amortisation/impairment | 340 | 780 | 283 | 171 | 207 | 176 | 41 | 51 |
| Reversals of impairment losses | 0 | 0 | 0 | 7 | 2 | 1 | 0 | 0 |
| EBIT | 192 | -365 | 138 | 310 | 508 | 481 | 36 | 64 |
| Investments | 303 | 323 | 108 | 130 | 108 | 154 | 38 | 50 |
| Segment assets | 9,1172 | 8,552 | 5,9632 | 6,057 | 5,9362 | 5,251 | 1,6152 | 1,795 |
| thereof non-current | (4,782) | (4,238) | (3,301) | (3,306) | (3,958) | (3,415) | (1,007) | (982) |
| Segment liabilities | 6,0602 | 5,918 | 4,4332 | 4,431 | 2,7142 | 2,351 | 9142 | 1,056 |
| Selling space (1,000 sqm) | 4,444 | 4,391 | 2,721 | 2,662 | 3,018 | 2,796 | 778 | 800 |
| Locations (number) | 831 | 823 | 603 | 606 | 510 | 510 | 131 | 135 |
| Regional segments continued | Continuing operations of the Group | the Group | ||||||
|---|---|---|---|---|---|---|---|---|
| International | Consolidation | METRO GROUP | ||||||
| € million | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 | 9M 2013/14 | 9M 2014/15 |
| External sales (net) | 28,300 | 27,797 | 0 | 0 | 45,532 | 44,977 | 2,378 | 2,334 |
| Internal sales (net) | 134 | 153 | -291 | -278 | 0 | 0 | 0 | 0 |
| Sales (net) | 28,434 | 27,950 | -291 | -278 | 45,532 | 44,977 | 2,378 | 2,334 |
| EBITDA | 1,211 | 1,246 | -2 | -4 | 1,741 | 1,657 | 270 | 204 |
| Depreciation/amortisation/impairment | 532 | 398 | 0 | 0 | 871 | 1,178 | 88 | 88 |
| Reversals of impairment losses | 2 | 8 | 0 | 0 | 2 | 8 | 0 | 0 |
| EBIT | 682 | 856 | -2 | -4 | 872 | 487 | 182 | 116 |
| Investments | 254 | 334 | 0 | 0 | 558 | 656 | 143 | 98 |
| Segment assets | 13,5142 | 13,103 | -369 | -415 | 22,2622 | 21,240 | 2,158 | 2,173 |
| thereof non-current | (8,266) | (7,704) | (-3) | (-3) | (13,045) | (11,938) | (1,610) | (1,652) |
| Segment liabilities | 8,0602 | 7,839 | -288 | -292 | 13,8322 | 13,464 | 765 | 741 |
| Selling space (1,000 sqm) | 6,518 | 6,258 | 0 | 0 | 10,962 | 10,648 | 1,444 | 1,419 |
| Locations (number) | 1,244 | 1,251 | 0 | 0 | 2,075 | 2,074 | 137 | 134 |
1Adjustment due to discontinued operations (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements") 2Adjustment of previous year (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements")
Discontinued operations of the Group
Operating segments Continuing operations of the Group
| METRO Cash & Carry | Media-Saturn | Real | Others | |||||
|---|---|---|---|---|---|---|---|---|
| € million | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 |
| External sales (net) | 7,549 | 7,449 | 4,563 | 4,620 | 2,053 | 1,885 | 3 | 14 |
| Internal sales (net) | 11 | 2 | 0 | 0 | 0 | 2 | 1,470 | 25 |
| Sales (net) | 7,560 | 7,452 | 4,563 | 4,620 | 2,053 | 1,886 | 1,473 | 39 |
| EBITDA | 385 | 362 | -33 | -15 | 11 | 27 | 74 | 36 |
| Depreciation/amortisation/impairment | 121 | 112 | 64 | 59 | 48 | 33 | 33 | 36 |
| Reversals of impairment losses | 0 | 5 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBIT | 265 | 255 | -97 | -74 | -37 | -7 | 42 | 0 |
| Investments | 82 | 119 | 54 | 54 | 80 | 72 | 23 | 24 |
| Segment assets | 11,5752 | 11,298 | 5,3842 | 5,431 | 3,289 | 2,860 | 2,544 | 2,092 |
| thereof non-current | (8,058) | (7,643) | (1,583) | (1,454) | (2,065) | (1,682) | (1,390) | (1,201) |
| Segment liabilities | 5,3492 | 5,360 | 5,6372 | 5,633 | 1,118 | 1,342 | 2,170 | 1,474 |
| Selling space (1,000 sqm) | 5,616 | 5,473 | 3,088 | 3,065 | 2,258 | 2,080 | 0 | 29 |
| Locations (number) | 763 | 764 | 988 | 1,005 | 324 | 301 | 0 | 4 |
| Operating segments continued | Continuing operations of the Group | the Group | ||||
|---|---|---|---|---|---|---|
| Consolidation | METRO GROUP | |||||
| € million | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 |
| External sales (net) | 0 | 0 | 14,168 | 13,967 | 694 | 667 |
| Internal sales (net) | -1,481 | -30 | 0 | 0 | 0 | 0 |
| Sales (net) | -1,481 | -30 | 14,168 | 13,967 | 694 | 667 |
| EBITDA | -3 | 0 | 435 | 409 | 52 | 39 |
| Depreciation/amortisation/impairment | -1 | -1 | 265 | 240 | 30 | 29 |
| Reversals of impairment losses | 0 | 0 | 0 | 5 | 0 | 0 |
| EBIT | -2 | 1 | 171 | 175 | 22 | 9 |
| Investments | 0 | 0 | 239 | 269 | 25 | 64 |
| Segment assets | -531 | -441 | 22,2622 | 21,240 | 2,158 | 2,173 |
| thereof non-current | (-51) | (-41) | (13,045) | (11,938) | (1,610) | (1,652) |
| Segment liabilities | -441 | -346 | 13,8322 | 13,464 | 765 | 741 |
| Selling space (1,000 sqm) | 0 | 0 | 10,962 | 10,648 | 1,444 | 1,419 |
| Locations (number) | 0 | 0 | 2,075 | 2,074 | 137 | 134 |
1Adjustment due to discontinued operations (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements") 2Adjustment of previous year (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements")
Discontinued operations of
| Germany | Western Europe (excl. Germany) |
Eastern Europe | Asia/Africa | ||||||
|---|---|---|---|---|---|---|---|---|---|
| € million | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | |
| External sales (net) | 5,312 | 5,130 | 4,565 | 4,570 | 3,454 | 3,274 | 837 | 993 | |
| Internal sales (net) | 44 | 39 | 35 | 42 | 2 | 2 | 7 | 8 | |
| Sales (net) | 5,356 | 5,170 | 4,600 | 4,612 | 3,456 | 3,276 | 845 | 1,001 | |
| EBITDA | 116 | 69 | 109 | 121 | 184 | 183 | 26 | 36 | |
| Depreciation/amortisation/impairment | 106 | 107 | 71 | 53 | 74 | 64 | 14 | 15 | |
| Reversals of impairment losses | 0 | 0 | 0 | 5 | 0 | 0 | 0 | 0 | |
| EBIT | 10 | -39 | 38 | 73 | 109 | 119 | 13 | 22 | |
| Investments | 131 | 132 | 40 | 57 | 53 | 57 | 15 | 23 | |
| Segment assets | 9,1172 | 8,552 | 5,9632 | 6,057 | 5,9362 | 5,251 | 1,6152 | 1,795 | |
| thereof non-current | (4,782) | (4,238) | (3,301) | (3,306) | (3,958) | (3,415) | (1,007) | (982) | |
| Segment liabilities | 6,0602 | 5,918 | 4,4332 | 4,431 | 2,7142 | 2,351 | 9142 | 1,056 | |
| Selling space (1,000 sqm) | 4,444 | 4,391 | 2,721 | 2,662 | 3,018 | 2,796 | 778 | 800 | |
| Locations (number) | 831 | 823 | 603 | 606 | 510 | 510 | 131 | 135 |
| Regional segments continued | Continuing operations of the Group |
|---|---|
Discontinued operations of
the Group
| International | Consolidation | METRO GROUP | ||||||
|---|---|---|---|---|---|---|---|---|
| € million | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 | Q3 2013/14 | Q3 2014/15 |
| External sales (net) | 8,857 | 8,837 | 0 | 0 | 14,168 | 13,967 | 694 | 667 |
| Internal sales (net) | 45 | 52 | -88 | -91 | 0 | 0 | 0 | 0 |
| Sales (net) | 8,901 | 8,889 | -88 | -91 | 14,168 | 13,967 | 694 | 667 |
| EBITDA | 319 | 341 | 0 | 0 | 435 | 409 | 52 | 39 |
| Depreciation/amortisation/impairment | 159 | 133 | 0 | 0 | 265 | 240 | 30 | 29 |
| Reversals of impairment losses | 0 | 5 | 0 | 0 | 0 | 5 | 0 | 0 |
| EBIT | 160 | 213 | 0 | 0 | 171 | 175 | 22 | 9 |
| Investments | 107 | 137 | 0 | 0 | 239 | 269 | 25 | 64 |
| Segment assets | 13,5142 | 13,103 | -369 | -415 | 22,2622 | 21,240 | 2,158 | 2,173 |
| thereof non-current | (8,266) | (7,704) | (-3) | (-3) | (13,045) | (11,938) | (1,610) | (1,652) |
| Segment liabilities | 8,0602 | 7,839 | -288 | -292 | 13,8322 | 13,464 | 765 | 741 |
| Selling space (1,000 sqm) | 6,518 | 6,258 | 0 | 0 | 10,962 | 10,648 | 1,444 | 1,419 |
| Locations (number) | 1,244 | 1,251 | 0 | 0 | 2,075 | 2,074 | 137 | 134 |
1Adjustment due to discontinued operations (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements") 2Adjustment of previous year (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements")
These unaudited interim consolidated financial statements as at 30 June 2015 have been prepared in accordance with International Accounting Standard (IAS) 34 (Interim Financial Reporting), which regulates interim financial reporting under the International Financial Reporting Standards (IFRS). As a condensed interim report, it does not contain all the information required by IFRS for annual consolidated financial statements.
These interim consolidated financial statements have been prepared in euros. All amounts are stated in millions of euros (€ million) unless otherwise indicated. Furthermore, to provide a better overview within the tables, decimal places have been partly omitted. Only the numbers within the income statement, the total comprehensive income reconciliation, the balance sheet, the statement of changes in equity and the cash flow statement have been rounded in a way that they form the sum when added up. In all other tables, the individual amounts and the totals were rounded separately. Rounding differences may occur.
During the financial year, sales-related and cyclical items are accounted for pro-rata, where material.
In preparing these interim consolidated financial statements, all applicable standards and interpretations published by the International Accounting Standards Board (IASB), insofar as these were adopted by the European Union, were applied. With the exception of new or revised accounting methods described below, the same recognition and measurement principles have been applied as in the last consolidated financial statements as at 30 September 2014. More information regarding the recognition and measurement principles applied can be found in the notes to the annual consolidated financial statements as at 30 September 2014 (see Annual Report 2013/14, pages 184-204).
The new and amended standards that are material to METRO AG and have been applied for the first time since 1 October 2014 are explained in the following.
IFRS 10 (Consolidated Financial Statements), IFRS 11 (Joint Arrangements) and IFRS 12 (Disclosure of Interests in Other Entities)
The new standards IFRS 10, 11 and 12 contain changes in accounting and disclosure requirements for consolidated financial statements. IFRS 10 (Consolidated Financial Statements) includes a new definition of control that determines which entities are consolidated. It replaces previous regulations governing consolidated financial statements included in IAS 27 (Consolidated and Separate Financial Statements – from now on, only Separate Financial Statements) and SIC-12 (Consolidation – Special Purpose Entities). The key change resulting from IFRS 10 concerns the introduction of a uniform definition of control. Several criteria must now be met for the existence of control. For one, the investor has power over the investee. This means that the investor has existing rights that give it the ability to direct the relevant activities; that is, the activities that significantly affect the investee's results. In addition, the investor is exposed, or has rights, to variable returns from its involvement with the investee, and has the ability to affect those returns through its power over the investee.
IFRS 11 (Joint Arrangements) describes the accounting for arrangements in which several parties have joint control over a joint venture or a joint operation. It replaces IAS 31 (Interests in Joint Ventures) and SIC-13 (Jointly Controlled Entities – Non-Monetary Contributions by Venturers) and amends IAS 28 (Investments in Associates – from now on: Investments in Associates and Joint Ventures). IFRS eliminates the option previously granted under IAS 31 to apply proportionate consolidation to joint ventures. From now on, joint ventures must be recognised using the equity method in accordance with the stipulations of IAS 28. As METRO AG has not made use of the option to apply proportionate consolidation, this amendment has no effect on the consolidated financial statements of METRO AG. According to IFRS 11, the individual partners in joint arrangements recognise their portion of jointly held assets and jointly incurred liabilities in their own balance sheet. Analogously, they also include their respective portion of sales, income and expenses deriving from the joint arrangement in their income statement.
The new IFRS 12 (Disclosure of Interests in Other Entities) markedly expands the disclosure requirements for investments in other entities. From now on, detailed information must be provided on subsidiaries, associates, joint arrangements, joint ventures, consolidated special purpose entities (so-called structured entities) and all special purpose entities that are not consolidated but with which an entity maintains a relationship.
The first-time application of these standards has had no material effect on the consolidated financial statements of METRO AG.
Pursuant to IAS 32 (Financial Instruments: Presentation), financial assets and financial liabilities should be offset if the following two preconditions are met: first, the entity must have a legally enforceable right to set off the amounts as at the closing date; second, it must intend to either settle on a net basis or to realise the asset and settle the liability simultaneously. The amendment to IAS 32 "Offsetting of Financial Assets and Financial Liabilities" specifies when these conditions are The retrospective application of this specification led to the following changes. During the comparative period with the closing date 30 June 2014, the balance sheet was extended by €114 million, with receivables due from suppliers accounting for €114 million and trade liabilities accounting for €114 million. The balance sheet was also extended by €152 million as at the end of the last financial year as at 30 September 2014, with receivables from suppliers, assets held for sale, trade payables and liabilities related to assets held for sale accounting for €145 million, €7 million, €145 million and €7 million, respectively.
Within the scope of the annual improvements to IFRS 2010– 2012, slight revisions were made to IFRS 3 (Business Combinations) and IFRS 8 (Operating Segments), among others. In IFRS 3, clarification was provided that a contingent consideration is only classified as equity or a financial liability when there is a financial instrument. Additionally, the option to recognise effects from the subsequent measurement of contingent considerations outside of profit or loss in other comprehensive income was eliminated. Their recognition through profit or loss is now mandatory. From now on, transactions with contingent considerations will therefore result in individual impacts on earnings for METRO AG.
Furthermore, aggregation of several operating segments to a single reportable segment in accordance with IFRS 8 requires a description of the aggregated operating segments. Additionally, the metrics used as a criterion for evaluating the existence of similar economic characteristics must now be disclosed. Due to late endorsement by the EU, METRO AG will comply with these new disclosure requirements for the first time in its consolidated financial statements as at 30 September 2016. A reconciliation of segment assets to group assets is now necessary only if the segment assets are part of reporting to the responsible corporate decision-maker. However, for the time being, METRO AG will continue to report the reconciliations from segment assets to group assets and from segment liabilities to group liabilities.
Following the signing of the agreement to sell Galeria Kaufhof, the latter is now no longer reported as a separate segment and as part of METRO GROUP, but as a discontinued operation. Accordingly, METRO GROUP's financials have been recalculated to account for the disposal of Galeria Kaufhof and the previous year's figures have been adjusted (with the exception of the balance sheet and the respective notes to the balance sheet).
On 15 April 2015, Media-Saturn Holding GmbH acquired a majority stake in Dutch live shopping platform iBOOD.com, which it now controls. For practical reasons, however, this holding will be consolidated only from the last quarter of financial year 2014/15. The acquired stakes are shown under other non-current assets as at 30 June 2015. This action does not have any material effect on the asset, financial and earnings position of METRO AG.
On 15 June 2015, METRO GROUP signed an agreement with Hudson's Bay Company, Toronto/Canada, regarding the sale of its entire department store business. This comprises 102 Galeria Kaufhof stores and 16 Sportarena stores in Germany as well as 16 department stores of subsidiary Galeria Inno in Belgium. In addition, the agreement covers the 59 properties that are owned and/or managed by Galeria Real Estate Group. The Supervisory Board of METRO GROUP has already approved the agreement. Against this background, the assets and liabilities of the Galeria Kaufhof segment were classified as a discontinued operation in accordance with IFRS 5 and reported in the balance sheet under "assets held for sale" (€2,291 million) and under "liabilities related to assets held for sale" (€1,258 million). As a result, the balance of the assets and liabilities held for sale of the discontinued operation Galeria Kaufhof amounts to €1,033 million. Accordingly, earnings of the Galeria Kaufhof segment were transferred to the item "profit or loss for the period from discontinued operations after tax" in the consolidated income statement. No impairment losses had to be recognised because the fair value of the discontinued operation exceeds the recognised carrying amounts. Expenses that have already been incurred in the context of the divestment process are reported under "gains/losses from the remeasurement or disposal of discontinued operations after tax". The previous year's figures have been restated accordingly. The transaction did not result in any changes in other comprehensive income.
As a result, profit or loss for the period from discontinued operations is made up as follows:
| € million | 9M 2013/14 | 9M 2014/15 |
|---|---|---|
| Sales | 2.434 | 2.389 |
| Expenses | -2.268 | -2.287 |
| Current earnings from discontinued operations before tax |
166 | 102 |
| Income taxes on current earnings | 16 | -15 |
| Current earnings from discontinued operations after tax |
182 | 87 |
| Gains/losses from the remeasurement or disposal of discontinued operations before tax |
0 | -2 |
| Income taxes on gains/losses from remeasurement or disposal |
0 | 0 |
| Gains/losses from the remeasurement or disposal of discontinued operations after tax |
0 | -2 |
| Profit or loss for the period from discontinued operations |
182 | 85 |
In METRO GROUP's cash flow statement, cash flows from operating, investing and financing activities are shown separately for discontinued operations. The previous year's figures in the cash flow statement have been adjusted accordingly.
METRO GROUP expects the transaction to be closed at the end of financial year 2014/15.
Depreciation/amortisation/impairment losses of €1,179 million (9M 2013/14: €872 million) include impairment losses of €489 million (9M 2013/14: €148 million). Thereof, €455 million are attributable to goodwill impairment losses related to Real Germany and METRO Cash & Carry in Pakistan that were recognised in Q2 2014/15. A goodwill impairment of €446 million was recognised for goodwill at Real Germany (from €1,084 million to €638 million). In addition, a full goodwill impairment of €9 million was recognised for the group of cash-generating units of METRO Cash & Carry in Pakistan. The impairment was shown within the "other operating expenses" item.
Impairment losses of €9 million are related to Q3 2014/15 (Q3 2013/14: €30 million). These relate primarily to the impairment of a store included in property, plant and equipment of METRO Cash & Carry Kazakhstan in the context of portfolio measures. The attribution of depreciation/amortisation/impairment losses in the income statement and the affected asset categories is as follows:
| € million | 9M 2013/14 | 9M 2014/15 |
|---|---|---|
| Cost of sales | 13 | 12 |
| Selling expenses | 689 | 634 |
| General administrative expenses | 82 | 77 |
| Other operating expenses | 88 | 455 |
| Net financial result | 0 | 1 |
| 872 | 1,179 |
| € million | 9M 2013/14 | 9M 2014/15 |
|---|---|---|
| Goodwill | 88 | 455 |
| Other intangible assets | 84 | 76 |
| Property, plant and equipment | 688 | 627 |
| Investment properties | 10 | 19 |
| Financial assets1 | 0 | 1 |
| Assets held for sale | 0 | 0 |
| 872 | 1,179 |
Including investments accounted for using the equity method
| € million | Q3 2013/14 | Q3 2014/15 |
|---|---|---|
| Cost of sales | 4 | 4 |
| Selling expenses | 239 | 211 |
| General administrative expenses | 22 | 25 |
| Other operating expenses | 0 | 0 |
| Net financial result | 0 | 0 |
| 265 | 240 | |
| € million | Q3 2013/14 | |
| Q3 2014/15 | ||
| Goodwill | 0 | 0 |
| Other intangible assets | 22 | 24 |
| Property, plant and equipment | 240 | 212 |
| Investment properties | 3 | 3 |
| Financial assets1 | 0 | 0 |
| Assets held for sale | 0 | 0 |
Including investments accounted for using the equity method
Impairments of capitalised financial instruments measured at amortised cost amount to €48 million (9M 2013/14: €47 million), with €17 million relating to Q3 2014/15 (Q3 2013/14: €15 million).
On 15 June 2015, METRO GROUP signed an agreement with Hudson's Bay Company, Toronto/Canada, regarding the sale of the entire department store business as well as 59 related properties owned and/or managed by Galeria Real Estate Group. The department store business comprises 102 Galeria Kaufhof stores and 16 Sportarena stores in Germany as well as 16 department stores of subsidiary Galeria Inno in Belgium. The Supervisory Board of METRO AG has already approved the above-mentioned agreement. The transaction is expected to close at the end of financial year 2014/15.
All assets and liabilities affected by the agreement are part of the Galeria Kaufhof segment and are treated as a discontinued operation in accordance with IFRS 5. Following consolidation of all intra-group assets and liabilities, they are therefore shown in the item "assets held for sale" (€2,291 million) or "liabilities related to assets held for sale" (€1,258 million) in the consolidated balance sheet as at 30 June 2015. Assets and liabilities held for sale of the department store business can be broken down as follows:
| € million | 30/6/2015 |
|---|---|
| Assets | |
| Goodwill | 71 |
| Other intangible assets | 42 |
| Property, plant and equipment | 1,535 |
| Other financial and non-financial assets (non-current) | 136 |
| Inventories | 448 |
| Trade receivables | 8 |
| Other financial and non-financial assets (current) | 34 |
| Cash and cash equivalents | 17 |
| 2,291 | |
| Liabilities | |
| Provisions for post-employment benefits plans and similar obligations |
327 |
| Other provisions (non-current) | 17 |
| Financial liabilities (non-current) | 335 |
| Other financial and non-financial liabilities (non-current) | 70 |
| Trade liabilities | 220 |
| Provisions (current) | 40 |
| Financial liabilities (current) | 17 |
| Other financial and non-financial liabilities (current) | 232 |
| 1,258 | |
The shown assets contribute €2,173 million to segment assets in the "discontinued operations" segment in segment reporting. The respective segment liabilities amount to €741 million. No impairment losses were necessary to adjust the recognised carrying amounts to the fair value less costs to sell. In addition, METRO GROUP's equity includes cumulative expenses and income of €87 million, which were recognised in other comprehensive income.
Further information on this transaction is provided in the section "Notes to the income statement" under "discontinued operations".
On 18 February 2015, METRO Cash & Carry signed an agreement regarding the sale of the Vietnamese wholesale business consisting of 19 wholesale stores including the associated real estate portfolio to TCC Holding Co., Ltd. (TCC). This contract was changed on 22 July 2015. The approval of the supervisory board to this agreement is existing. On 7 August 2014, METRO Cash & Carry had signed an agreement with Thai retail group Berli Jucker Public Company Limited (BJC) regarding the sale of the Vietnamese wholesale business including the appendant real estate portfolio. This was rejected by the general meeting of BJC. As a result, BJC's majority shareholder TCC replaced BJC as party to the transaction at unchanged economic conditions. METRO GROUP expects the transaction to be closed in the next financial year. At present, customary authorisations by the local authorities remain outstanding. Until these conditions are fulfilled, the Vietnamese wholesale business will remain part of METRO GROUP and will continue to contribute to Group results. Since the annual financial statements for financial year 2013/14, all assets and liabilities affected by the transaction have been treated as a disposal group pursuant to IFRS 5. Following consolidation of all intra-group assets and liabilities, they are therefore shown in the item "assets held for sale" or "liabilities related to assets held for sale" in the consolidated balance sheet as at 30 June 2015. The "assets held for sale" of €221 million shown in this context in the consolidated financial statements as at 30 September 2014 increased to €238 million in the current financial year as operations were continued. Correspondingly, "liabilities related to assets held for sale" increased from €192 million to €201 million during this period. As at 30 June 2015, the breakdown of these assets and liabilities is as follows:
| € million | 30/6/2015 |
|---|---|
| Assets | |
| Property, plant and equipment | 126 |
| Other financial and non-financial assets (non-current) | 53 |
| Inventories | 39 |
| Trade receivables | 3 |
| Other financial and non-financial assets (current) | 15 |
| Cash and cash equivalents | 2 |
| 238 | |
| Liabilities | |
| Provisions for post-employment benefits plans and similar obligations |
1 |
| Financial liabilities (non-current) | 65 |
| Trade liabilities | 41 |
| Provisions (current) | 6 |
| Financial liabilities (current) | 80 |
| Other financial and non-financial liabilities (current) | 8 |
| 201 |
In the METRO Cash & Carry segment, assets and liabilities held for sale that are related to the Vietnamese wholesale business contribute €233 million to segment assets and €53 million to segment liabilities.
EBIT-effective expenses of €8 million in connection with the sale were incurred in the first nine months of financial year 2014/15. They are reported under general administrative expenses and are essentially attributable to the METRO Cash & Carry segment. In addition, the net financial result includes €4 million in income, with €5 million shown in the other financial result and €-1 million shown in the interest result. No expenses were incurred in connection with the measurement of the disposal group at fair value less costs to sell. The transaction also had no impact on other comprehensive income.
On 21 November 2014, METRO GROUP concluded an agreement about the sale of 100% of the shares in MAKRO Cash & Carry Wholesale S.A., Greece, consisting of 9 cash & carry stores and the associated real estate portfolio, with INO S.A., 70% owned subsidiary of Greek retail group I. & S. Sklavenitis Trade S.A. (Sklavenitis). After the suspensive conditions had been fulfilled, the transaction was completed on 30 January 2015. As a result, the deconsolidation of MAKRO Cash & Carry Wholesale S.A. was implemented in the half-year financial statements as at 31 March 2015. The assets and liabilities disposed of as a result of the deconsolidations can be broken down as follows:
| € million | 30/06/201 5 |
|---|---|
| Assets | |
| Goodwill | 25 |
| Property, plant and equipment | 57 |
| Inventories | 30 |
| Other financial and non-financial assets (current) | 16 |
| Entitlements to income tax refunds | 0 |
| Cash and cash equivalents | 18 |
| 146 | |
| Liabilities | |
| Provisions for post-employment benefits plans and similar obligations |
2 |
| Trade liabilities | 74 |
| Provisions (current) | 2 |
| Other financial and non-financial liabilities (current) | 5 |
| 83 |
The EBIT contribution resulting from the sale of MAKRO Cash & Carry Wholesale S.A. amounts to €8 million, with €9 million recognised in other operating income and €1 million recognised in general administrative expenses. In addition, the reversal through profit or loss of currency translation differences that were recognised in equity until the deconsolidation date resulted in expenses of €8 million in the other financial result. The deconsolidation had no impact on other comprehensive income.
In the context of the disposal of Real's Eastern European business to Groupe Auchan, which was concluded by the end of Q2 2013/14, the Group plans to sell the remaining assets to other buyers. After consideration of currency effects of €-1 million, these assets were sold at their carrying amount of €2 million during Q3 of the current financial year.
The value of individual properties held for sale changed from €236 million to €306 million during the first nine months of financial year 2014/15 as a result of the reclassification of individual properties with a total value of €107 million from non-current assets to "assets held for sale", the sale of real estate assets with a total value of €32 million and currency effects totalling €-5 million.
METRO GROUP expects to dispose of the real estate assets recognised as "assets held for sale" within a year following their first-time recognition in this balance sheet item. No impairment losses to a lower fair value less costs to sell became necessary. Within segment reporting, these assets are recognised in segment assets of the Real (€171 million) and Others (€135 million) segments.
Dividend distribution of METRO AG is based on METRO AG's annual financial statements prepared under German commercial law. As resolved by the Annual General Meeting on 20 February 2015, a dividend of €0.90 per ordinary share and €1.13 per preference share, for a total of €295 million, was paid from the reported profit for the period of €319 million for financial year 2013/14, with the remaining amount carried forward to the new account. The dividend was paid out on 23 February 2015.
During the first nine months of financial year 2014/15, an amount of €83 million (Q3 2013/14: €-118 million, reducing equity) from the remeasurement of defined-benefit pension plans as at 30 June 2015 was recognised in METRO AG's other comprehensive income outside of profit or loss, resulting in an increase in equity. Aside from the reduction of the actuarial interest rate and the difference between normed and actual income from plan assets, the remeasurement also comprises the adjustment of inflation expectations effected as early as Q2 2014/15, the retirement age and the mortality assumption resulting from a modified assessment.
The retirement age was determined as the respective statutory retirement age less two years and the modification of the mortality tables effected in previous years was cancelled based on the current mortality rates published by the German Federal Statistics Office.
The national actuarial rates of interest and inflation rates have changed as follows:
| 30/09/2014 | 30/06/2015 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| % | Germany | Nether lands |
United Kingdom |
Belgium | Other countries |
Germany | Nether lands |
United Kingdom |
Belgium | Other countries |
| Actuarial interest rate | 2.60 | 2.70 | 4.20 | 2.60 | 2.60 | 2.30 | 2.60 | 3.80 | 2.30 | 2.30 |
| Inflation rate | 2.00 | 2.00 | 2.50 | 2.00 | 1.92 | 1.50 | 2.00 | 2.50 | 2.00 | 1.92 |
The carrying amounts and fair values of recognised financial instruments are as follows:
| 30/06/2014 | |||||
|---|---|---|---|---|---|
| Balance sheet value (Amortised) |
Fair value | Fair value | |||
| € million | Carrying amount | cost | through profit or loss |
outside of profit or loss |
Fair value |
| Assets | 28,832 | n/a | n/a | n/a | n/a |
| Loans and receivables | 3,109 | 3,109 | 0 | 0 | 3,110 |
| Loans and advance credit granted | 57 | 57 | 0 | 0 | 59 |
| Receivables due from suppliers1 | 1,611 | 1,611 | 0 | 0 | 1,611 |
| Trade receivables | 634 | 634 | 0 | 0 | 634 |
| Miscellaneous financial assets | 807 | 807 | 0 | 0 | 806 |
| Held to maturity | 0 | 0 | 0 | 0 | 0 |
| Securities | 0 | 0 | 0 | 0 | 0 |
| Other financial assets | 0 | 0 | 0 | 0 | 0 |
| Held for trading | 10 | 0 | 10 | 0 | 10 |
| Derivative financial instruments not in a hedging relationship according to IAS 39 |
10 | 0 | 10 | 0 | 10 |
| Securities | 0 | 0 | 0 | 0 | 0 |
| Other financial assets | 0 | 0 | 0 | 0 | 0 |
| Available for sale | 272 | 18 | 0 | 255 | n/a |
| Investments | 271 | 18 | 0 | 253 | n/a |
| Securities | 1 | 0 | 0 | 1 | 1 |
| Other financial assets | 0 | 0 | 0 | 0 | 0 |
| Derivative financial instruments within hedges under IAS 39 |
1 | 0 | 0 | 1 | 1 |
| Cash and cash equivalents | 2,357 | 2,357 | 0 | 0 | 2,357 |
| Receivables from finance lease (amount according to IAS 17) |
1 | n/a | n/a | n/a | 0 |
| Assets not classified according to IFRS 7 | 23,081 | n/a | n/a | n/a | n/a |
| Equity and liabilities | 28,832 | n/a | n/a | n/a | n/a |
| Held for trading | 21 | 0 | 21 | 0 | 21 |
| Derivative financial instruments not in a hedging relationship according to IAS 39 |
21 | 0 | 21 | 0 | 21 |
| Miscellaneous financial liabilities | 0 | 0 | 0 | 0 | 0 |
| Other financial liabilities | 18,203 | 18,133 | 0 | 71 | 18,515 |
| Financial liabilities excl. finance leases (incl. hedged items in hedging relationships according to IAS 39) |
6,858 | 6,858 | 0 | 0 | 7,169 |
| Trade liabilities1 | 9,959 | 9,959 | 0 | 0 | 9,959 |
| Miscellaneous financial liabilities | 1,387 | 1,316 | 0 | 71 | 1,387 |
| Derivative financial instruments within hedges under IAS 39 |
7 | 0 | 0 | 7 | 7 |
| Liabilities from finance lease (amount according to IAS 17) |
1,302 | n/a | n/a | n/a | 1,509 |
| Liabilities not classified according to IFRS 7 | 9,298 | n/a | n/a | n/a | n/a |
1Adjustment of previous year (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements")
| 30/06/2015 | |||||
|---|---|---|---|---|---|
| Balance sheet value | |||||
| (Amortised) cost |
Fair value through profit or |
Fair value outside of profit |
|||
| € million | Carrying amount | loss | or loss | Fair value | |
| Assets | 27,489 | n/a | n/a | n/a | n/a |
| Loans and receivables | 2,778 | 2,778 | 0 | 0 | 2,778 |
| Loans and advance credit granted | 58 | 58 | 0 | 0 | 58 |
| Receivables due from suppliers | 1,512 | 1,512 | 0 | 0 | 1,512 |
| Trade receivables | 592 | 592 | 0 | 0 | 592 |
| Miscellaneous financial assets | 616 | 616 | 0 | 0 | 616 |
| Held to maturity | 0 | 0 | 0 | 0 | 0 |
| Securities | 0 | 0 | 0 | 0 | 0 |
| Miscellaneous financial assets | 0 | 0 | 0 | 0 | 0 |
| Held for trading | 53 | 0 | 53 | 0 | 53 |
| Derivative financial instruments not in a hedging relationship according to IAS 39 |
53 | 0 | 53 | 0 | 53 |
| Securities | 0 | 0 | 0 | 0 | 0 |
| Miscellaneous financial assets | 0 | 0 | 0 | 0 | 0 |
| Available for sale | 438 | 22 | 0 | 416 | n/a |
| Investments | 22 | 22 | 0 | 0 | n/a |
| Securities | 416 | 0 | 0 | 416 | 416 |
| Miscellaneous financial assets | 0 | 0 | 0 | 0 | 0 |
| Derivative financial instruments within hedges under IAS 39 |
41 | 0 | 0 | 41 | 41 |
| Cash and cash equivalents | 1,691 | 1,691 | 0 | 0 | 1,691 |
| Receivables from finance lease (amount according to IAS 17) |
0 | n/a | n/a | n/a | 0 |
| Assets not classified according to IFRS 7 | 22,487 | n/a | n/a | n/a | n/a |
| Equity and liabilities | 27,489 | n/a | n/a | n/a | n/a |
| Held for trading | 17 | 0 | 17 | 0 | 17 |
| Derivative financial instruments not in a hedging relationship according to IAS 39 |
17 | 0 | 17 | 0 | 17 |
| Miscellaneous financial liabilities | 0 | 0 | 0 | 0 | 0 |
| Other financial liabilities | 16,819 | 16,697 | 49 | 73 | 16,960 |
| Financial liabilities excl. finance leases (incl. hedged items in hedging relationships according to IAS 39) |
6,085 | 6,085 | 0 | 0 | 6,225 |
| Trade liabilities | 9,398 | 9,398 | 0 | 0 | 9,398 |
| Miscellaneous financial liabilities | 1,336 | 1,214 | 49 | 73 | 1,336 |
| Derivative financial instruments within hedges under IAS 39 |
3 | 0 | 0 | 3 | 3 |
| Liabilities from finance lease (amount according to IAS 17) |
1,159 | n/a | n/a | n/a | 1,447 |
| Liabilities not classified according to IFRS 7 | 9,491 | n/a | n/a | n/a | n/a |
Classes were formed based on similar risks for the respective financial instruments and correspond to the categories of IAS 39. Derivative financial instruments in a hedging relationship under IAS 39 and other financial liabilities are classified in each case to a separate class.
The fair value hierarchy comprises three levels which reflect the degree of closeness to the market of the input parameters used in the determination of the fair values. In cases in which the valuation is based on different input parameters, the fair value is attributed to the hierarchy level corresponding to the input parameter of the lowest level that is significant for the valuation.
Input parameters for level 1: Quoted prices (that are adopted unchanged) in active markets for identical assets or liabilities which the company can access at the valuation date.
Input parameters for level 2: Other input parameters than the quoted prices included in level 1 which are either directly or indirectly observable for the asset or liability.
Input parameters for level 3: Input parameters that are not observable for the asset or liability.
Of the total carrying amount of investments of €22 million (prior year: €271 million), €22 million (prior year: €18 million) are recognised at cost of purchase because a fair value cannot reliably be determined. These concern off-exchange financial instruments without an active market. The company currently does not plan to dispose of the investments recognised at historical cost. Exchange-listed investments totalling €0 million (previous year: €253 million) are recognised at fair value outside of profit or loss.
Miscellaneous financial liabilities include liabilities from put options of non-controlling interests in the amount of €122 million (prior year: €71 million). Of these, subsequent valuation is applied for €73 million (prior year: €71 million) outside of profit or loss and €49 million (previous year: €0 million) at fair value through profit or loss.
The following table depicts the financial instruments that are recognised at fair value in the balance sheet. These are classified into a 3-level fair value hierarchy whose levels reflect the degree of closeness to the market of the data used in the determination of the fair values:
| 30/06/2014 | 30/06/2015 | |||||||
|---|---|---|---|---|---|---|---|---|
| € million | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
| Assets | 266 | 255 | 11 | 0 | 510 | 416 | 94 | 0 |
| Held for trading | ||||||||
| Derivative financial instruments not in a hedging relationship according to IAS 39 |
10 | 0 | 10 | 0 | 53 | 0 | 53 | 0 |
| Available for sale | ||||||||
| Investments | 253 | 253 | 0 | 0 | 0 | 0 | 0 | 0 |
| Securities | 1 | 1 | 0 | 0 | 416 | 416 | 0 | 0 |
| Derivative financial instruments in a hedging relationship according to IAS 39 |
1 | 0 | 1 | 0 | 41 | 0 | 41 | 0 |
| Equity and liabilities | 99 | 0 | 28 | 71 | 142 | 0 | 20 | 122 |
| Held for trading | ||||||||
| Derivative financial instruments not in a hedging relationship according to IAS 39 |
21 | 0 | 21 | 0 | 17 | 0 | 17 | 0 |
| Miscellaneous financial liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other financial liabilities | ||||||||
| Miscellaneous financial liabilities | 71 | 0 | 0 | 71 | 122 | 0 | 0 | 122 |
| Derivative financial instruments in a hedging relationship according to IAS 39 |
7 | 0 | 7 | 0 | 3 | 0 | 3 | 0 |
| Total | 167 | 255 | -17 | -71 | 368 | 416 | 74 | -122 |
The measurement of securities (level 1) is carried out based on quoted market prices on active markets.
Interest rate swaps and currency transactions (all level 2) are measured using the mark-to-market method based on quoted exchange rates and market yield curves.
The fair value of commodity derivatives (level 2) is calculated as the average of the past month's price noted on the exchange.
No transfers between levels 1 and 2 were effected during the reporting period.
Level 3 includes the fair values of liabilities from put options of non-controlling interests. The fair value measurement depends on the respective contract details and is carried out using the discounted cash flow method (30/06/2015: €73 million; 30/06/2014: €71 million) and in consideration of contractual value limits (30/06/2015: €49 million; 30/06/2014: €0 million).
Fair values of liabilities from put options, which are determined using the discounted cash flow method, are based on expected future cash flows over a detailed planning period of 3 years (previous year: 3 to 5 years) plus a perpetuity. The assumed growth rate for the perpetuity in local currency is 2.5% to 8.7% (previous year: 2.5% to 8.1%). The respective local WACC is used as the discount rate. In the reporting period, discount rates ranged from 11.6% to 15.2% (previous year: 11.6% to 14.9%). If the individual interest rates were to increase by 10%, the fair value of these liabilities would decline by €6 million (previous year: €8 million). An interest rate decrease by 10% would increase the fair value of these liabilities by €8 million (prior year: €11 million).
The changes in value of put options developed as follows:
| € million | 2013/14 | 2014/15 |
|---|---|---|
| On 1 Oct | 78 | 72 |
| Transfer to level 3 | 0 | 0 |
| Transfer from level 3 | 0 | 0 |
| Total gains (-) or losses (+) for the period | 0 | 2 |
| Profit or loss for the period | 0 | 1 |
| Other comprehensive income | 0 | 0 |
| Other changes in value outside of profit or loss | -7 | 48 |
| Transaction-related changes | 0 | 0 |
| Granting of new rights | 0 | 0 |
| Redemption of existing rights | 0 | 0 |
| On 30 June | 71 | 122 |
The changes in value of put options existing as at the closing date include €47 million (previous year: €0 million) from the first-time recognition of put options in debt by means of a reclassification from equity. In addition, goodwill impairments of €1 million (previous year: €-7 million) were increased and expenses of €1 million (previous year: €0 million) resulted in the other financial result.
Financial instruments that are recognised at amortised cost in the balance sheet, but for which the fair value is stated in the notes, are also classified according to a 3-level fair value hierarchy.
Due to their mostly short terms, the fair values of receivables due from suppliers, trade receivables and liabilities as well as cash and cash equivalents essentially correspond to their carrying amounts.
The measurement of the fair value of bonds, liabilities to banks and promissory note loans is based on the market interest rate curve following the zero-coupon method in consideration of credit spreads (level 2). The amounts comprise the interest prorated to the closing date.
The fair values of all other financial assets and liabilities that are not listed on an exchange correspond to the present value of payments underlying these balance sheet items. The calculation was based on the applicable country-specific yield curves as at the closing date (level 2).
Segment reporting has been carried out in accordance with IFRS 8 (Operating Segments). The segmentation corresponds to the Group's internal controlling and reporting structures and is generally based on the division of the business into individual sectors.
Aside from the information on the operating segments listed above, equivalent information is provided on the METRO regions. Here, a distinction is made between the regions Germany, Western Europe (excluding Germany), Eastern Europe and Asia/Africa.
related risks and recoverability risks related to non-current assets are only shown in the segments where they represent group risks. In analogy, this also applies to deferred assets and liabilities, which are only shown at segment level if this was also required in the consolidated balance sheet.
The reconciliation from segment assets to Group assets is shown in the following table:
| € million | 30/6/2014 | 30/6/2015 |
|---|---|---|
| Segment assets1, 2 22,262 |
21,240 | |
| Segment assets Galeria Kaufhof | 2,158 | 2,173 |
| Non-current and current financial investments | 326 | 78 |
| Investments accounted for using the equity method | 94 | 94 |
| Cash and cash equivalents | 2,357 | 1,691 |
| Deferred tax assets | 821 | 654 |
| Entitlements to income tax refunds | 226 | 452 |
| Other entitlements to tax refunds3 | 525 | 443 |
| Assets held for sale 22 |
123 | |
| thereof Galeria Kaufhof 0 |
118 | |
| thereof others 22 |
5 | |
| Receivables from other financial transactions4 | 520 | |
| Other 19 |
23 | |
| Group assets | 28,832 | 27,489 |
1Adjustment of previous year due to discontinued operations (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements") 2Adjustment of previous year (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements") 3 Included in the balance sheet item "other financial and non-financial assets"
(current)
4 Included in the balance sheet item "other financial and non-financial assets" (non-current and current)
— Segment liabilities include non-current and current liabilities. They do not include, in particular, borrowings, tax items and liabilities allocable to discontinued operations.
The reconciliation from segment liabilities to Group liabilities is shown in the following table:
| € million | 30/6/2014 | 30/6/2015 |
|---|---|---|
| Segment liabilities1, 2 | 13,832 | 13,464 |
| Segment liabilities Galeria Kaufhof | 765 | 741 |
| Non-current and current financial liabilities | 8,159 | 7,243 |
| Deferred tax liabilities | 145 | 77 |
| Income tax liabilities | 197 | 81 |
| Income tax provisions3 | 95 | 51 |
| Other tax liabilities4 | 408 | 314 |
| Liabilities from other financial transactions4 | 32 | 23 |
| Liabilities to non-controlling interests4 | 72 | 124 |
| Liabilities related to assets held for sale | 33 | 665 |
| thereof Galeria Kaufhof 0 |
517 | |
| thereof others | 33 | 148 |
| Interest for other provisions4 | 46 | 12 |
| Other | 3 | 0 |
| Group liabilities | 23,788 | 22,795 |
1Adjustment of previous year due to discontinued operations (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements") 2Adjustment of previous year (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements")
Included in the balance sheet items "other provisions" (non-current) and "provisions" (current)
4 Included in the balance sheet items "other financial and non-financial liabilities" (non-current and current)
— In principle, transfers between segments are made based on the costs incurred from the Group's perspective.
| € million | 30/6/2014 | 30/6/2015 |
|---|---|---|
| Liabilities from suretyships and guarantees | 20 | 15 |
| Liabilities from guarantee and warranty contracts | 461 | 39 |
| 66 | 54 |
1Changed disclosure from previous year
No material change in contingent liabilities was recorded during the reporting period.
Information on legal disputes, investigations and other legal issues as well as on the related possible risks and consequences for METRO GROUP can be found in nos. 46. "Other legal issues" and 47. "Events after the closing date" of the notes to the consolidated financial statements of METRO AG as at 30 September 2014. Information on legal disputes related to Media-Saturn-Holding GmbH can be found in the risk and opportunities report in chapter 12 of the combined management report in the consolidated financial statements of METRO AG as at 30 September 2014.
The following material developments with regard to legal disputes, investigations and other legal issues have occurred since the consolidated financial statements were prepared:
Legal disputes in relation to Media-Saturn-Holding GmbH Based on the arbitral award of 8 August 2012, the approval of this decision by the Higher Regional Court of Munich of 18 December 2013 as well as the binding ruling by the Munich court on 9 August 2012, METRO AG (METRO) feels confirmed in its opinion that the consolidation of the Media-Saturn group of companies was rightfully effected according to the relevant IFRS (International Financial Reporting Standards) regulations, both in the past and in the consolidated financial statements as at 30 September 2014. As reported, the minority shareholder appealed against the above-mentioned decision of the Higher Regional Court of Munich of 18 December 2013 before the Federal Court of Justice; METRO considers a success of this appeal highly unlikely.
As reported in the consolidated annual financial statements for financial year 2013/14, members of the advisory board delegated by the minority shareholder have filed several legal actions against Media-Saturn-Holding (MSH) before the Regional Court of Ingolstadt in which they challenge MSH advisory board resolutions – including the budget resolutions for 2012/13 and 2013/14. In the meantime, the overwhelming majority of these actions – for example, in connection with the approval of the preparation of the annual financial statements of MSH as at 30 September 2012 and in relation to budget resolutions for 2012/13 – have been dismissed in the first instance, with these decisions partially declared effective. Any appeals by unsuccessful claimants to the Higher Regional Court of Munich - including in relation to the budget resolutions for 2012/13 – have been rejected. The respective claimant filed a complaint relating to nonadmission before the German Federal Court of Justice. In METRO's view, the chances of success of the non-admission complaint and other challenges that are still in first-instance hearings are also low. In particular, METRO does not expect the courts to deviate from the arbitration court's decision regarding the majority voting requirement for the advisory board.
On 21 April 2015, the Regional Court of Ingolstadt dismissed the complaint of the minority shareholder through which the shareholder aims to achieve the dismissal of the managing director installed by METRO. The non-controlling shareholder has appealed against this decision. The Regional Court of Ingolstadt and the Higher Regional Court of Munich as the court of appeal have finally dismissed the minority shareholder's request for an injunction against the managing director that would have prohibited him from performing his duties.
The minority shareholder has filed another legal action against MSH before the Regional Court Ingolstadt in relation to negative decisions by the shareholders' meeting concerning the amendment of the statutes demanded by the minority shareholder, and seeks the declaration of a positive resolution regarding this amendment of the statutes. The amendment of the statutes concerns responsibilities of the shareholders' meeting. Furthermore, the minority shareholder has filed a petition to decree an interim injunction before the Regional Court Ingolstadt, with which he seeks the preliminary prohibition of a measure of management until the court decision in the main proceedings. According to METRO's view, the chances of success of the legal action and the aforementioned motion are low."
As reported in the consolidated annual financial statements for financial year 2013/14, on 14 January 2010, the Federal Cartel Office searched former business premises of MGB METRO GROUP Buying GmbH. On 19 December 2011, the Federal Cartel Office had extended the scope of the investigation to also include METRO AG, METRO Cash & Carry International GmbH and METRO Dienstleistungs-Holding GmbH. This extension resulted from the merger of MGB METRO GROUP Buying GmbH into METRO Dienstleistungs-Holding GmbH as part of the decentralisation of central procurement in Germany. As reported, the Federal Cartel Office used this as a reason to extend the investigation to the parent or group holding company in view of the risk that the legal opponent may cease to exist due to a corporate restructuring with a change of legal form. The authority had already stopped proceedings for a subcomplex without imposition of measures. Two additional subcomplexes were settled out of court and by mutual agreement with the authority through payment of a fine. In the context of another remaining sub-complex, the authority sent METRO AG a hearing notice in February 2015. In this notification, accusations are levelled concerning practices engaged in by the former MGB METRO Group Buying GmbH in the form of vertical price fixing agreements with a supplier. A comprehensive defence case against these allegations has been launched and appropriate risk provisions have been formed.
In addition, companies of METRO GROUP are parties to other judicial or arbitral and antitrust law proceedings in various European countries. This also includes investigations by the EU Commission into the MSH Group and Redcoon GmbH, which were initiated with searches related to suspected anticompetitive agreements with suppliers in 2013 and 2015, respectively. Insofar as the liability has been specified sufficiently, appropriate risk provisions have been formed for these proceedings.
On 22 July 2015, METRO GROUP announced the sale of a majority holding in 10 Real hypermarkets to Carlton Investment, Berlin, by its real estate subsidiary METRO PROPERTIES as part of a joint venture. METRO PROPERTIES continues to hold a stake of 40% in the portfolio. The real estate assets make up the so-called "Sokrates" portfolio, which METRO PROPERTIES repurchased from the DELEK group in 2014 to continue the targeted optimisation and strategic positioning of Real's store portfolio. The carrying amount of the divested real estate assets amounts to a figure in the low triple-digit millions.
On 4 August 2015, METRO AG announced that Mr. Dr. Wulf H. Bernotat, being a member of the supervisory board of METRO AG since May 2003, decided to resign as supervisory board member as of 4 September 2015. METRO AG's management board will file an application for the appointment of Mr. Jürgen B. Steinemann as member of the supervisory board, with limitation to the completion of the ordinary shareholders' meeting on 19 February 2016. Since 2009, Mr. Steinemann is CEO of Barry Callebaut AG, Zurich/Switzerland ("Barry Callebaut"). The company is one of the world's largest manufacturers of chocolate and cocoa products. As scheduled, Mr. Steinemann will withdraw from his role as CEO at Barry Callebaut by the end of September 2015 and continue to work as deputy president of the administrative board.
Under an agreement signed 6 August 2015, METRO Cash & Carry International Holding B.V. and Klassisk Holding Limited agreed on the purchase of Klassisk Investment Limited including all subsidiaries. The group operates under the brand Classic Fine Foods (CFF), is a leading player in the premium food service distribution business and is predominantly present in major cities in Asia. CFF is located in Singapore and generated sales of more than US\$200 million in calendar year 2014. The group occupies around 800 employees in 14 countries.
With effect from financial year 2013/14, METRO GROUP introduced the Sustainable Performance Plan, which considers economic and environmental criteria as well as the company's social responsibility along with share-based performance metrics.
In the 2014/15 financial year, the plan was modified slightly and renamed Sustainable Performance Plan 2.0: In future, it will be based in equal proportions on total shareholder return, METRO AG's sustainability ranking and earnings per share. The overall cap was reduced to 250% from 300% of the target amount. Starting in financial year 2015/16, the performance period will be extended to four years from the current three years. The Sustainable Performance Plan has been approved for a total of four tranches.
In April 2015, the first tranche of the Sustainable Performance Plan 2.0 was launched with a target amount of €28.725 million, including €5.2 million for the Management Board of METRO AG.
Effective from the financial year 2014/15, the Supervisory Board adjusted the design of the short- and long-term incentives for Management Board members. In addition, an option was introduced to switch gross salary components into selffunded pension entitlements.
The new short-term incentive is calculated on the basis of an equally weighted consideration of like-for-like sales growth, EBIT and return on capital. To ensure the individual performance orientation of Management Board remuneration, the Supervisory Board of METRO AG now also reserves the general right to reduce or increase the weight of the individual shortterm incentive by up to 30%, respectively, at its discretion. In any case, the payout of the short-term incentive is limited to 200% of the defined target amount.
In future, the new long-term incentive will be calculated on the basis of an equally weighted consideration of total shareholder return, sustainability ranking and earnings per share. The total cap for the new long-term incentive was reduced to 250% from 300% of the target amount. From financial year 2015/16, the performance period will cover four rather than three years.
In future, based on the new principles, the Supervisory Board will define annual targets for the long-term incentive and a portion of the short-term incentive.
| Announcement of sales results for financial year 2014/15 | Monday | 19 October 2015 | 7.30 a.m. |
|---|---|---|---|
| Annual Report 2014/15 | Tuesday | 15 December 2015 | 8.00 a.m. |
| Trading Statement Christmas Quarter 2015 | Tuesday | 12 January 2016 | 7.30 a.m. |
| Quarterly Financial Report Q1 2015/16 | Thursday | 11 February 2016 | 7.30 a.m. |
| Annual General Meeting 2016 | Friday | 19 February 2016 | 10.30 a.m. |
| Half-Year Financial Report H1/Q2 2015/16 | Wednesday | 11 May 2016 | 7.30 a.m. |
| Quarterly Financial Report 9M/Q3 2015/16 | Tuesday | 2 August 2016 | 7.30 a.m. |
All time specifications are CET
METRO AG Metro-Straße 1 40235 Düsseldorf, Germany
PO Box 230361 40089 Düsseldorf, Germany
www.metrogroup.de
Published: 6 August 2015
Visit our website at www.metrogroup.de, the primary source for publications and information about METRO GROUP.
Please note: In case of doubt the German version shall prevail.
This 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.
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