Quarterly Report • May 27, 2015
Quarterly Report
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| 3 | Group financial figures | |
|---|---|---|
5 METRO shares
| 6 | Interim group management report |
|---|---|
| 6 | Macroeconomic conditions |
| 6 | Financial position and financial performance |
| 9 | Risks and opportunities |
| 10 | Sustainability |
| 11 | METRO Cash & Carry |
| 13 | Media-Saturn |
| 15 | Real |
| 16 | Galeria Kaufhof |
| 18 | Others |
| 19 | 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 |
| 46 | Responsibility Statement |
| 47 | Review report |
48 Financial calendar and imprint
METRO GROUP's like-for-like sales rose markedly by 2.5%, supported by the earlier Easter business
Positive like-for-like sales trends across all regions
Negative impact on EBIT particularly from goodwill impairment (about €450 million) at Real
EBIT before special items: €-40 million (Q2 2013/14: €-40 million) including negative currency effects of about €30 million
EPS before special items: €-0.21 (Q2 2013/14: €-0.28)
METRO Cash & Carry Sales: -2.5% (in local currency: +0.3%)
Like-for-like sales growth of 1.1%: seventh consecutive quarterly increase
Media-Saturn Sales: +5.7% (in local currency: +6.9%)
Very strong increase in like-for-like sales of 5.2%
Positive like-for-like sales trends across all regions
Online sales up 25%
Real Sales: -3.8% due to sale of Real Eastern Europe
Like-for-like sales in Germany up 1.1%
32 additional stores remodelled
Galeria Kaufhof Sales: -1.1% due to declining textile market
Like-for-like sales down 0.6% in a very weak market environment
Adjusted for portfolio changes and exchange rate effects, sales rose markedly by 2.8%; like-for-like sales increased noticeably by 2.2%
EBIT before special items: €984 million (H1 2013/14: €1,033 million) including negative currency effects of about €90 million
EPS before special items: €1.16 (H1 2013/14: €1.07)
Net debt reduced by €0.8 billion
METRO GROUP guidance confirmed for the financial year 2014/15
| € million | H1 2013/14 | H1 2014/15 | Change (€) | Change (local currency) |
|---|---|---|---|---|
| Sales | 33,047 | 32,677 | -1.1% | 1.1% |
| Germany | 13,508 | 13,623 | 0.9% | 0.9% |
| International | 19,539 | 19,053 | -2.5% | 1.2% |
| Western Europe (excl. Germany) | 9,853 | 9,953 | 1.0% | 0.9% |
| Eastern Europe | 7,780 | 6,852 | -11.9% | 0.6% |
| Asia/Africa | 1,906 | 2,248 | 18.0% | 4.6% |
| International share of sales | 59.1% | 58.3% | - | |
| EBITDA1 | 1,586 | 1,504 | -5.2% | |
| EBIT1 | 1,033 | 984 | -4.7% | |
| Earnings before taxes (EBT)1 | 749 | 799 | 6.7% | |
| Net profit for the period1, 2 | 348 | 378 | 8.5% | |
| EPS (€)1 | 1.07 | 1.16 | 8.5% | |
| Investments | 438 | 421 | -3.8% | |
| Stores3 | 2,198 | 2,206 | 0.4% | |
| Selling space (1,000 sqm2 ) 3 |
12,375 | 12,081 | -2.4% | |
| Employees (full-time basis)3 | 223,119 | 219,852 | -1.5% |
1Before special items
2Profit attributable to shareholders of METRO AG 3As of the closing date 31 March
| € million | Q2 2013/14 | Q2 2014/15 | Change (€) | Change (local currency) |
|---|---|---|---|---|
| Sales | 14,326 | 14,366 | 0.3% | 2.0% |
| Germany | 5,799 | 5,905 | 1.8% | 1.8% |
| International | 8,528 | 8,461 | -0.8% | 2.0% |
| Western Europe (excl. Germany) | 4,322 | 4,361 | 0.9% | 0.5% |
| Eastern Europe | 3,170 | 2,813 | -11.3% | 2.7% |
| Asia/Africa | 1,036 | 1,287 | 24.2% | 6.0% |
| International share of sales | 59.5% | 58.9% | - | |
| EBITDA1 | 234 | 220 | -6.1% | |
| EBIT1 | -40 | -40 | -0.4% | |
| Earnings before taxes (EBT)1 | -184 | -110 | 39.9% | |
| Net profit for the period1, 2 | -92 | -67 | 26.8% | |
| EPS (€)1 | -0.28 | -0.21 | 26.8% | |
| Investments | 164 | 245 | 49.3% | |
| Stores3 | 2,198 | 2,206 | 0.4% | |
| Selling space (1,000 sqm2 ) 3 |
12,375 | 12,081 | -2.4% | |
| Employees (full-time basis)3 | 223,119 | 219,852 | -1.5% |
1Before special items
2Profit attributable to shareholders of METRO AG 3As of the closing date 31 March
At the start of the first half of 2014/15, the METRO AG common share initially fell in sync with the German DAX stock index and the Dow Jones Stoxx Retail sector index. On 16 October 2014, the METRO share dropped to a half-year low of €23.06. Following a recovery in November 2014, 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 2014, positive reports about the past financial year and the announcement of an attractive dividend caused the share to rally again. Starting in January 2015, the share rose continuously in line with the DAX and the Dow Jones 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.
On 20 February 2015, METRO AG's Annual General Meeting decided on a dividend payout of €0.90 per ordinary share. However, the share managed to recover the resulting dividend discount within just eight trading days. On 20 March 2015, the METRO share reached a half-year high at €31.69.
Overall, the METRO ordinary share price rose markedly by 21.1% in H1 2014/15 to €31.60. The DAX gained 26.3% while the Dow Jones Euro Stoxx Retail sector index rose by as much as 29.9%.
As of the end of March 2015, Deutsche Börse's index ranked METRO AG's share 44th in terms of market capitalisation and 31st in terms of stock market trading volume.
| Q1 2014/15 | Q2 2014/15 | ||
|---|---|---|---|
| Closing price (€) | Ordinary shares | 25.31 | 31.60 |
| Preference shares | 21.15 | 23.35 | |
| Highest price (€) | Ordinary shares | 27.71 | 31.69 |
| Preference shares | 21.79 | 24.44 | |
| Lowest price (€) | Ordinary shares | 23.06 | 24.17 |
| Preference shares | 19.31 | 21.13 | |
| Market capitalisation (€ billion)1 Total | 8.3 | 10.3 |
1At the end of the reporting period. Data based on Xetra closing prices
Global economic trends remained mixed during the first half of the financial year 2014/15. The US economy was on a positive growth trajectory – although weather conditions at the start of the year slightly dampened growth. The Western European economies also continued on their recovery path, supported by low oil prices, the devaluation of the euro and low interest rates. Developments in Eastern Europe remained divided, with generally stable trends in Central European countries, on the one hand, and Eastern European countries whose economic developments remained overshadowed by the Russia-Ukraine conflict, on the other. Growth weakened in Asia, particularly in China. However, as a whole, the region continued to record the strongest growth rates. Overall, the global economy has thus grown slightly faster during the current financial year than in the same period of the previous year.
Germany once again outperformed the other Western European economies in the first half of the current financial year. Declining unemployment and growing disposable incomes bolstered private consumption and retail, which thus emerged as the key drivers of economic growth over the past two quarters. Overall, non-food retail posted stronger nominal sales growth than food retail, thanks partly to near-stagnation of food prices. In the non-food sector, clothes retailing was the key exception as it suffered a steep, weather-induced decline. At the same time, online retail continued to record strong growth and expanded its market share.
In Western Europe, low oil prices, the appreciation of the US dollar and low interest rates resulting from the European Central Bank's bond purchase programme served as a shortterm economic stimulus programme. At the same time, uncertainties regarding a possible Greek exit from the Eurozone have increased substantially again following the change of government. In addition, the economic recoveries across Western Europe continue to progress at different speeds: While Spain posted good growth - despite persistently high unemployment –, the French economy continued to struggle. Italy, too, only slowly climbed out of the past months' recession. Overall, however, modestly higher growth caused unemployment in the Eurozone to continue its slight decline. As a result, retail also recovered. After three years of weakness, nominal retail sales increased modestly by about 1% during the first six months. At the same time, prices fell throughout the reporting period, although an upward trend was noticeable towards the end of the period and the downward trend in food prices was halted as well.
Despite the de-escalation efforts through 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, the past months' currency devaluations resulted in markedly higher inflationary pressures in both countries. Due to the ban on imports, this had a disproportionate effect on food prices in Russia. In turn, the Central European economies – Poland, Czech Republic and Slovakia – recorded overall robust economic developments. This was also reflected in retail sales which posted solid nominal growth of 3% to 4%.
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 economic growth rates above 7%. 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. The Japanese economy, for its part, struggled and slipped into recession during the second half of last year. In combination with a sales tax increase in April 2014 this is also dampening retail which therefore weakened slightly during the first half of the current financial year.
Adjusted for currency effects and portfolio changes, METRO GROUP posted sales growth of 2.8% during the first half of 2014/15 (1 October 2014 to 31 March 2015) compared with the previous year's period. Reported sales declined by 1.1%
to €32.7 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. On a like-for-like basis, sales increased markedly by 2.2%.
In the second quarter (1 January to 31 March 2015), sales adjusted for currency effects and portfolio changes grew by 3.2%. Despite high negative currency effects, reported sales increased by 0.3% to €14.4 billion. Like-for-like sales increased by 2.5%, the strongest gain in 7 years. This positive development was supported by the earlier Easter business compared with the previous year.
Delivery sales increased by 10.5% to €1.4 billion in the first half of 2014/15 (H1 2013/14: €1.3 billion). In Q2 2014/15, delivery sales also rose sharply by 10.2% to €0.7 billion.
During the first half of 2014/15, METRO GROUP's online sales totalled €1.0 billion, an increase of about 27% compared with the previous year's period. Online sales also grew substantially during the second quarter of 2014/15, rising by 23% to €0.5 billion in a reflection of METRO GROUP's successful transformation into a multi-channel provider.
Like-for-like sales increased across all regions during the first half of 2014/15 and the second quarter of 2014/15.
In Germany, sales increased by 0.9% to €13.6 billion during the first half of 2014/15. During the second quarter, the strong development at Media-Saturn had a particularly positive effect on sales, which increased by 1.8%. The earlier Easter business also contributed to this development.
International sales fell by 2.5% to €19.1 billion in H1 2014/15, due mostly to exchange rate developments. In spite of negative portfolio effects, currency-adjusted sales increased by 1.2%. Sales declined slightly by 0.8% in the second quarter, but increased by 2.0% in local currency.
The international share in sales generated during H1 2014/15 fell from 59.1% to 58.3%.
In Western Europe (excluding Germany), sales rose by 1.0% to €10.0 billion in H1 2014/15. This is due to positive developments at Media-Saturn. In Q2 2014/15, sales climbed by 0.9%.
In Eastern Europe, sales declined by 11.9% to €6.9 billion in H1 2014/15. The decrease primarily resulted from distinctly negative currency effects and the disposal of Real in Eastern Europe. Currency-adjusted sales increased by 0.6%. Sales fell by 11.3% in the second quarter of 2014/15, while sales in local currency increased by 2.7%.
Sales in Asia/Africa grew markedly by 18.0% to €2.2 billion, supported by positive currency effects besides favourable operational developments. Measured in local currency, sales rose by 4.6%. On the back of stronger momentum, sales rose by 24.2% in Q2 2014/15 (in local currency: +6.0%).
Special items include one-time transactions or a number of one-time transactions of the same type, which influence the informative value of the 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.
During the first half of 2014/15, EBIT at METRO GROUP stood at €418 million (H1 2013/14: €861 million). This figure includes special items totalling €566 million (H1 2013/14: €172 million). EBIT before special items amounted to €984 million (H1 2013/14: €1,033 million). This decline is due, in particular, to foreign exchange losses of €90 million, primarily in relation to Russian rouble. As a result, EBIT before special items adjusted for currency effects increased.
In Q2 2014/15, EBIT totalled €-590 million (Q2 2013/14: €-233 million). Special items totalling €550 million (Q2 2013/14: €193 million) primarily relate to a goodwill impairment at Real. EBIT before special items came in at €-40 million (Q2 2013/14: €-40 million). Adjusted for negative currency effects of about €30 million, EBIT before special items thus improved significantly.
The net financial result improved markedly in H1 2014/15 from €-320 million to €-175 million. The net interest result rose substantially to -€158 million as a result of lower indebtedness and lower interest rates (H1 2013/14: €-202 million). The other net financial result improved significantly from €-122 million to €-17 million compared to the first half of 2013/14, essentially as a result of positive currency effects.
In the first half of 2014/15, Earnings before tax amounted to €243 million (H1 2013/14: €541 million). Before special items, earnings before taxes totalled €799 million (H1 2013/14: €749 million).
Reported tax expenses of €181 million (H1 2013/14: €299 million) correspond to a group tax rate of 74.6% (H1 2013/14: 55.2%). The tax rate before special items stands at 45.2% (H1 2013/14: 45.2%).
In the first half of 2014/15, net profit for the period amounted to €62 million (H1 2013/14: €242 million). Net proft for the period before special items improved to €438 million from €411 million.
In the first half of 2014/15, earnings per share amounted to €0.03 (H1 2013/14: €0.56). Adjusted for special items, earnings per share amounted to €1.16, after €1.07 in the previous year's period. In Q2 2014/15, earnings per share came to €-1.21 (Q2 2013/14: €0.82). Adjusted for special items, earnings per share in Q2 2014/15 stood at €-0.21 (Q2 2013/14: €-0.28).
METRO GROUP's capex in H1 2014/15 amounted to €421 million (H1 2013/14: €438 million). In Q2 2014/15, METRO GROUP invested €245 million (Q2 2013/14: €164 million).
In H1 2014/15, METRO GROUP opened 32 stores in 8 countries (H1 2013/14: 42 new openings), including 9 stores in the second quarter of 2014/15 (Q2 2013/14: 6). In addition, 26 stores were sold or closed (H1 2013/14: 65 disposals/closures), including 12 stores in the second quarter of 2014/15 (Q2 2013/14: 61).
METRO Cash & Carry opened a total of 10 stores in H1 2014/15 (H1 2013/14: 11). Russia and China accounted for 7 and 3 of these store openings, respectively. 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 abandoned in Italy, Bulgaria and Romania.
Media-Saturn opened 21 consumer electronics stores during the first half of 2014/15 (H1 2013/14: 30). The new store openings will lead to an even tighter network of stores in Russia, Poland, the Netherlands, Spain, Germany, Switzerland and Belgium. One store in Russia was closed.
As announced, Real closed 5 stores during the first half of 2014/15.
Galeria Kaufhof opened 1 department store in Belgium. As announced, the sales line closed 3 stores in Germany.
At the end of March 2015, METRO GROUP operated 2,206 stores in 30 countries.
A detailed presentation on the business development of the individual divisions is given on pages 11 through 18.
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 of 31 March 2015 (31 March 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 March 2015 amounted to €0.8 billion on average (H1 2013/14: €0.3 billion).
In addition, METRO GROUP has bilateral and syndicated credit lines amounting to €4.1 billion with durations up to 2020. As of 31 March 2015, a total of €1.0 billion was drawn down (31 March 2014: €1.3 billion). A total of €3.1 billion in syndicated and bilateral 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 of 30 September 2014, total assets increased by €0.6 billion to €28.7 billion. Year on year as of 31 March 2014, total assets increased by €0.4 billion. This reflects, in particular, the higher cash and cash equivalents as a new bond was issued at favourable terms in March 2015.
As of 31 March 2015, METRO GROUP's balance sheet disclosed €4.5 billion in equity. Compared with 30 September 2014, the equity ratio decreased from 17.8% to 15.5%. This is due to the higher total assets and the lower equity reflecting a goodwill impairment at Real. Year on year as of 31 March 2014, the equity ratio fell from 18.5% to 15.5%, reflecting the lower equity resulting from currency effects and lower actuarial interest rate for pension liabilities as well as goodwill impairment.
Net debt, after netting cash and cash equivalents as well as financial investments with financial liabilities (including finance leases), totalled €4.8 billion as of 31 March 2015. That was a decline of €0.8 billion compared with 31 March 2014. Compared with 30 September 2014, net debt increased partially as a result of the dividend payout.
Between October 2014 and March 2015, cash inflow from operating activities amounted to €0.9 billion (H1 2013/14: €0.7 billion).
Cash flow from investing activities amounted to €-0.6 billion (H1 2013/14: €-0.5 billion) and primarily included investments in property, plant and equipment.
Cash flow from financing activities showed inflows of €0.3 billion (H1 2013/14: cash outflow of €0.7 billion) and relates in particular to new financial borrowing to allow the company to benefit from the currently low interest rate level over the long term.
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 2013/14 (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.
Real is involved in the "Tierwohl" (animal welfare) initiative launched at the beginning of January 2015 which aims to improve conditions in which farm animals are kept, and thus continues to extend its commitment to fostering alternative forms of animal husbandry. Consumers increasingly demand species-appropriate animal husbandry. More and more customers consciously seek to positively influence animal welfare through their buying decisions. In order to substantially advance animal protection with respect to farm animals, leading representatives of the agricultural sector, the meat packing sector and the food retail sector have jointly developed a model for the implementation of specific animal welfare measures.
On 24 February, METRO GROUP won EHI Retail Institute's retail technology award Europe (reta) for its innovative technology for the detailed tracking and tracing of fish and meat products. EHI's annual award honours retail companies for the use of innovative information technology solutions in three categories and is presented at the annual EuroShop trade fair in Düsseldorf. The origin of fish and meat also plays an increasingly important role for restaurant owners, caterers and smaller retailers. Since summer 2014, the wholesale expert METRO Cash & Carry has been offering its professional customers a unique traceability solution which enables them to provide detailed product information to their own customers. The technology, which was developed in cooperation with the standardisation organisation GS1 Germany and the IT subsidiary METRO Systems, allows customers to access product details such as species, origin, trapping or keeping methods through a smartphone app when shopping in METRO Cash & Carry stores. Importantly, the technology is made available to all market participants and as such marks a first step towards a standardised traceability system for the industry.
Amsterdam-based Top Employers Institute has named five METRO countries among Europe's leading employers. METRO Cash & Carry's local companies in Belgium, France, Italy, Portugal and Spain were awarded the "Top Employers Europe 2015" certification for their outstanding commitment to employee development. In its annual survey, the institute identifies leading companies that nurture and develop talents throughout all levels of the organisation and work to optimise their employment practices. Key criteria include companies' talent strategy, performance management and corporate culture.
In March 2015, Galeria Kaufhof joined the "Fur Free Retailer" initiative and signed the relevant agreement. At a time of growing fur production around the world, Galeria Kaufhof is clearly endorsing its strong commitment to animal protection with this move.
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) |
Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | |
| Total | 15,369 | 14,889 | -2.0% | -3.1% | -4.1% | -3.8% | 2.1% | 0.6% | 0.9% | 1.2% |
| Germany | 2,441 | 2,402 | -2.1% | -1.6% | 0.0% | 0.0% | -2.1% | -1.6% | -2.1% | -1.6% |
| Western Europe (excl. Germany) |
5,192 | 5,045 | -0.8% | -2.8% | 0.0% | 0.0% | -0.8% | -2.8% | -1.2% | -1.4% |
| Eastern Europe | 5,833 | 5,198 | -4.3% | -10.9% | -8.9% | -14.6% | 4.6% | 3.7% | 3.0% | 4.4% |
| Asia/Africa | 1,903 | 2,244 | 2.2% | 17.9% | -6.6% | 13.4% | 8.7% | 4.5% | 4.7% | 3.9% |
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) |
Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | |
| Total | 6,861 | 6,691 | -3.1% | -2.5% | -5.1% | -2.7% | 2.0% | 0.3% | 0.8% | 1.1% |
| Germany | 1,078 | 1,048 | -2.1% | -2.8% | 0.0% | 0.0% | -2.1% | -2.8% | -2.0% | -2.9% |
| Western Europe (excl. Germany) |
2,276 | 2,190 | -1.8% | -3.8% | 0.0% | 0.0% | -1.8% | -3.8% | -2.0% | -1.6% |
| Eastern Europe | 2,472 | 2,169 | -6.4% | -12.3% | -12.1% | -15.1% | 5.7% | 2.8% | 4.1% | 4.7% |
| Asia/Africa | 1,035 | 1,285 | 1.7% | 24.2% | -4.9% | 18.2% | 6.6% | 6.0% | 2.9% | 4.0% |
Overall, METRO Cash & Carry continued its very positive development, recording the seventh consecutive quarter of like-forlike sales growth at 1.1%.
Due to exchange rate factors (primarily Russian rouble), however, sales in euro decreased by 3.1% to €14.9 billion in the first half of 2014/15. By contrast, sales in local currency increased by 0.6%. Sales fell by 2.5% in the second quarter of 2014/15, while sales in local currency increased by 0.3%.
Delivery sales continued their positive trend, rising by 10.5% to €1.4 billion in the first half of 2014/15. Delivery sales now account for 9.3% of sales of METRO Cash & Carry. Sales from the delivery business continued their upward trend in Q2 2014/15, rising by 10.2% to €0.7 billion.
In Germany, sales declined by 1.6% to €2.4 billion in H1 2014/15. In Q2 2014/15, sales decreased by 2.8%. This development also reflects deflationary sales price trends which could not be compensated for by the earlier Easter business.
Sales in Western Europe totalled €5.0 billion in H1 2014/15, 2.8% below the previous year's figure. In Q2 2014/15, sales decreased by 3.8%. This decline is partly attributable to the closure of the company's Danish stores and to declining sales trends in Belgium. In contrast, sales in the Netherlands declined only slightly during the second quarter. Sales increased in Italy and Portugal.
In Eastern Europe, sales fell by 10.9% to €5.2 billion during H1 2014/15. However, this decline was largely due to currency effects. Measured in local currency, sales rose by 3.7%. Likefor-like sales also rose markedly by 4.4%. Partially supported by inflation, the sales line recorded double-digit like-for-like growth in Russia. In Q2 2014/15, sales in Eastern Europe decreased by 12.3%. However, sales in local currency increased by 2.8% despite the disposal of the Greek stores. Like-for-like sales increased substantially by 4.7%.
Sales in Asia/Africa rose markedly by 17.9% to €2.2 billion during H1 2014/15. Exchange rates had a positive impact here. Measured in local currency, sales rose by 4.5%. Like-for-like sales increased by 3.9%. On the back of stronger momentum, sales rose by 24.2% in in Q2 2014/15 (in local currency: +6.0%). Like-for-like sales rose by 4%, supported, in particular, by double-digit growth in India and a positive sales trend in China.
The international share in sales generated during H1 2014/15 dropped to 83.9% from 84.1%.
| € million | H1 2013/14 | H1 2014/15 | Change | Q2 2013/14 | Q2 2014/15 | Change |
|---|---|---|---|---|---|---|
| EBITDA | 767 | 718 | -6.3% | 121 | 131 | 8.7% |
| EBITDA before special items | 797 | 724 | -9.2% | 147 | 140 | -4.3% |
| EBIT | 451 | 504 | 11.8% | -85 | 19 | - |
| EBIT before special items | 583 | 519 | -11.0% | 43 | 37 | -12.6% |
| Investments | 102 | 166 | 63.0% | 42 | 89 | - |
| 30/09/2014 | 31/03/2015 | Change | 31/12/2014 | 31/03/2015 | Change | |
|---|---|---|---|---|---|---|
| Stores | 766 | 759 | -7 | 768 | 759 | -9 |
| Selling space (1,000 sqm) | 5,576 | 5,466 | -110 | 5,574 | 5,466 | -108 |
| Employees (full-time basis) | 110,014 | 107,710 | -2,304 | 112,393 | 107,710 | -4,683 |
During the first half of 2014/15, EBIT amounted to €504 million (H1 2013/14: €451 million) and included special items of €15 million. These concern, in particular, a goodwill impairment at METRO Cash & Carry in Pakistan. EBIT before special items amounted to €519 million (H1 2013/14: €583 million). This decline is due mostly to very negative year-toyear currency effects of about €90 million in Russia. As a result, METRO Cash & Carry's EBIT improved in local currency terms.
In Q2 2014/15, EBIT before special items came to €37 million (Q2 2013/14: €43 million). This figure includes negative currency effects of about €30 million. As such, EBIT actually improved significantly in currency-adjusted terms.
In H1 2014/15, investments in expansion and modernisation amounted to €166 million (H1 2013/14: €102 million). METRO Cash & Carry opened 10 stores during this period. The store networks in Russia and China were expanded by 7 and 3 stores, respectively. In Italy, Bulgaria and Romania, 1 store each was disposed of. As announced, the 5 stores in Denmark were closed. The 9 stores in Greece were sold as planned.
As of 31 March 2015, METRO Cash & Carry operated 759 stores in 26 countries: 107 stores in Germany, 232 in Western Europe, 286 in Eastern Europe and 134 in Asia.
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) |
Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | |
| Total | 11,482 | 12,035 | -2.1% | 4.8% | -1.3% | -1.3% | -0.8% | 6.1% | -2.2% | 4.4% |
| Germany | 5,388 | 5,588 | -2.5% | 3.7% | 0.0% | 0.0% | -2.5% | 3.7% | -3.6% | 2.7% |
| Western Europe (excl. Germany) |
4,565 | 4,815 | -0.3% | 5.5% | -0.3% | 0.4% | 0.0% | 5.1% | -0.4% | 3.7% |
| Eastern Europe | 1,529 | 1,632 | -2.8% | 6.7% | -9.3% | -11.8% | 6.5% | 18.5% | -2.2% | 13.2% |
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) |
Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | |
| Total | 4,881 | 5,161 | -4.0% | 5.7% | -1.6% | -1.2% | -2.4% | 6.9% | -3.7% | 5.2% |
| Germany | 2,242 | 2,399 | -5.8% | 7.0% | 0.0% | 0.0% | -5.8% | 7.0% | -6.7% | 5.9% |
| Western Europe (excl. Germany) |
2,001 | 2,127 | -1.0% | 6.3% | -0.2% | 0.9% | -0.8% | 5.4% | -1.2% | 3.7% |
| Eastern Europe | 638 | 634 | -3.6% | -0.6% | -12.7% | -12.3% | 9.1% | 11.7% | -0.2% | 8.0% |
Media-Saturn continued and accelerated its positive sales trend during the past quarter. In Q2 2014/15, like-for-like sales jumped by 5.2%.
Overall, sales increased by 4.8% to €12.0 billion during the first half of 2014/15. Partly as a result of the expansion, sales in local currency even grew by 6.1%. Like-for-like sales increased by 4.4%. All regions contributed to the positive sales development. Sales grew by 5.7% in the second quarter and by as much as 6.9% in local currency. Like-for-like sales increased by 5.2%. In tandem with the positive sales development, Media-Saturn managed to expand its market share in several countries.
Media-Saturn continued to forge ahead with the rigorous expansion of its online business and the dovetailing of its sales channels during the first half of 2014/15. As a result, online sales rose markedly by about 25% to €0.9 billion, accounting for nearly 8% of Media-Saturn's total sales. Online sales also grew during the second quarter, rising by more than 20% to €0.4 billion.
In Germany, sales increased by 3.7% to €5.6 billion in H1 2014/15. Like-for-like sales increased by 2.7%. The positive trend was reinforced further in the second quarter with a strong increase in sales of 7.0% to €2.4 billion. Like-for-like sales increased by 5.9%. Several successful marketing activities contributed to this positive development. In addition, as market leader, Media-Saturn benefited from positive broad market developments.
In the meantime, the multi-channel offering established as an integral part of Media-Saturn's business. The online product range was expanded once again. At the end of March 2015, it comprised more than 110,000 products at Mediamarkt.de and more than 100,000 at Saturn.de.
In its continued expansion of its multi-channel strategy, Media-Saturn now also cooperates with online marketplace eBay in the e-commerce area. eBay buyers in Germany can now choose from an even more attractive assortment of consumer electronic products. Media Markt and Saturn operate own eBay web shops to offer their regular online assortment to an even larger customer group.
In Western Europe, sales increased markedly by 5.5% to €4.8 billion during the first half of 2014/15. Like-for-like sales also increased noticeably by 3.7%. In Q2 2014/15, sales jumped by 6.3%. Like-for-like sales grew by 3.7%. The positive sales trend in Spain of Q1 continued in Q2 with double-digit like-for-like sales growth.
In Eastern Europe, a strong sales increase of 6.7% to €1.6 billion was recorded in H1 2014/15. Sales in local currency actually increased by 18.5%. Like-for-like sales also recorded a pleasing increase of 13.2%. All countries posted higher likefor-like sales. Business in Eastern Europe continued to develop favourably during Q2 2014/15. Adjusted for currency effects, however, sales were down slightly by 0.6%. Sales in local currency, in turn, grew strongly by 11.7%, with like-for-like sales growth reaching 8.0%. Following exceptionally strong growth in Russia resulting from strong pull-forward effects during the first quarter, business slowed somewhat during the second quarter. Business developments were particularly favourable in Hungary and Poland.
The international share in sales generated during H1 2014/15 increased from 53.1% to 53.6%.
| € million | H1 2013/14 | H1 2014/15 | Change | Q2 2013/14 | Q2 2014/15 | Change |
|---|---|---|---|---|---|---|
| EBITDA | 396 | 460 | 16.2% | 40 | 54 | 37.4% |
| EBITDA before special items | 405 | 488 | 20.5% | 52 | 79 | 52.6% |
| EBIT | 266 | 332 | 24.9% | -26 | -13 | 52.0% |
| EBIT before special items | 275 | 369 | 34.5% | -14 | 20 | - |
| Investments | 107 | 81 | -24.3% | 49 | 40 | -17.8% |
| 30/09/2014 | 31/03/2015 | Change | 31/12/2014 | 31/03/2015 | Change | |
|---|---|---|---|---|---|---|
| Stores | 986 | 1,006 | 20 | 999 | 1,006 | 7 |
| Selling space (1,000 sqm) | 3,070 | 3,080 | 10 | 3,085 | 3,080 | -5 |
| Employees (full-time basis) | 57,689 | 57,616 | -73 | 59,193 | 57,616 | -1,577 |
EBIT jumped sharply in the first half of 2014/15, rising to €332 million (H1 2013/14: €266 million). This figure includes special items totalling €38 million (H1 2013/14: €9 million), which mostly relate to store-related restructuring measures. EBIT before special items amounted to €369 million (H1 2013/14: €275 million), a significant improvement of 34.5%. The strong increase was largely due to good like-for-like sales growth.
In Q2 2014/15, EBIT before special items improved markedly to €20 million from a negative result of €-14 million in the previous year's quarter.
During the first half of 2014/15, capex amounted to €81 million (H1 2013/14: €107 million). A total of 21 consumer electronics stores were opened, including 6 in Poland, 5 each in Russia and the Netherlands, 2 in Spain and 1 store each in Germany, Belgium and Switzerland. One store in Russia was closed. Also, in Q2 2014/15, Media-Saturn opened its 1000th store.
As of 31 March 2015, the store network of Media-Saturn comprised 1,006 stores in 15 countries: 416 consumer electronics stores in Germany, 376 in Western Europe and 214 in Eastern Europe.
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) |
Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | |
| Total | 4,507 | 4,059 | -21.5% | -9.9% | -0.5% | 0.0% | -21.1% | -9.9% | -3.9% | 1.0% |
| Germany | 4,089 | 4,059 | -4.4% | -0.7% | 0.0% | 0.0% | -4.4% | -0.7% | -4.1% | 1.0% |
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) |
Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | |
| Total | 1,900 | 1,829 | -28.0% | -3.8% | -0.6% | 0.2% | -27.4% | -4.0% | -6.4% | 1.1% |
| Germany | 1,841 | 1,829 | -6.9% | -0.7% | 0.0% | 0.0% | -6.9% | -0.7% | -6.6% | 1.1% |
As a result of the disposal of Real Eastern Europe, sales at Real declined from €4.5 billion to €4.1 billion in the first half of 2014/15. The figure for the previous year's period still included sales of Real in Poland and Turkey.
Due to store closures, sales of Real Germany declined by 0.7% to €4.1 billion in the first half of 2014/15. In turn, like-for-like sales increased by 1.0%. In Q2 2014/15, sales decreased by 0.7%. Like-for-like sales increased by 1.1%, helped by the earlier Easter business. Deflationary developments, particularly in the ultra-fresh produce area, as well as a late start to the gardening season prevented an even better development.
Sales of Real Online developed favourably. Online sales doubled to €10 million during the second quarter of 2014/15.
In December 2014, METRO GROUP had acquired 15% in the retail start-up "Emmas Enkel". At the same time, Real was appointed as the retailer's future supplier. First deliveries to the modern corner shops were made in March 2015, including high-value food items, regional fresh produce, household and drugstore products as well as own-brand articles.
| € million | H1 2013/14 | H1 2014/15 | Change | Q2 2013/14 | Q2 2014/15 | Change |
|---|---|---|---|---|---|---|
| EBITDA | 104 | 81 | -22.6% | -51 | -25 | 51.7% |
| EBITDA before special items | 125 | 113 | -9.4% | -7 | -3 | 62.8% |
| EBIT | 34 | -432 | - | -87 | -506 | - |
| EBIT before special items | 56 | 48 | -15.3% | -41 | -36 | 11.6% |
| Investments | 36 | 77 | - | 30 | 65 | - |
| 30/09/2014 | 31/03/2015 | Change | 31/12/2014 | 31/03/2015 | Change | |
|---|---|---|---|---|---|---|
| Stores | 311 | 302 | -9 | 302 | 302 | 0 |
| Selling space (1,000 sqm) | 2,145 | 2,078 | -67 | 2,079 | 2,078 | -1 |
| Employees (full-time basis) | 28,810 | 27,987 | -823 | 28,374 | 27,987 | -387 |
In H1 2014/15, EBIT stood at €-432 million (H1 2013/14: €34 million). This figure includes special items totalling €480 million (H1 2013/14: €23 million). Against the backdrop of earnings developments, this relates to goodwill impairments, in particular. Following a sustainable repositioning, Real has carried out impairments for goodwill resulting from company acquisitions that were completed 17 years ago. EBIT before special items amounted to €48 million, compared with €56 million in the previous year's period. The decline was driven by increased general cost, but also especially caused by activities for a sustainable improvement of customer perception and competitiveness. Thus, the marketing activites were intensified in H1 2014/15 and expenditures for store remodelling were increased in order to align more stores with the new concept.
In Q2 2014/15, EBIT before special items came to €-36 million (Q2 2013/14: €-41 million). This result also includes the earlier Easter business.
Capex amounted to €77 million in H1 2014/15 (H1 2013/14: €36 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.
As announced, 5 hypermarkets were closed in Germany. As a result, the German sales network comprised 302 stores as of 31 March 2015.
| Sales (€ million) | Change | Like-for-like | ||||
|---|---|---|---|---|---|---|
| H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | |
| Total | 1,684 | 1,667 | -0.4% | -1.0% | -0.4% | -1.1% |
| Germany | 1,588 | 1,574 | -0.3% | -0.9% | -0.3% | -0.8% |
| Western Europe (excl. Germany) | 96 | 93 | -2.1% | -3.2% | -2.1% | -5.9% |
| Sales (€ million) | Change | Like-for-like | ||||
|---|---|---|---|---|---|---|
| Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | |
| Total | 682 | 674 | -1.9% | -1.1% | -1.9% | -0.6% |
| Germany | 637 | 630 | -1.9% | -1.0% | -1.9% | -0.3% |
| Western Europe (excl. Germany) | 45 | 43 | -1.6% | -2.9% | -1.6% | -5.8% |
During the first half of 2014/15, sales at Galeria Kaufhof fell by 1.0% to €1.7 billion. Like-for-like sales decreased by 1.1%. This trend improved slightly during the second quarter of 2014/15, with like-for-like sales declining by 0.6%. As a result, Galeria Kaufhof outperformed the textile market in several segments, thereby expanding its market share.
In Germany, sales of Galeria Kaufhof fell by 0.9% to €1.6 billion during the first half of 2014/15. Like-forlike sales decreased by 0.8%.
In Q2 2014/15, sales decreased by 1.0%, due mostly to continued weakness in the textile market. Supported by the earlier Easter business, however, like-for-like sales only fell slightly by 0.3%.
In Western Europe, sales fell by 3.2% in H1 2014/15. Like-forlike sales were down by 5.9% as the trend observed during the first quarter continued in the second quarter of 2014/15. Sales decreased by 2.9%, with like-for-like sales down 5.8%.
| € million | H1 2013/14 | H1 2014/15 | Change | Q2 2013/14 | Q2 2014/15 | Change |
|---|---|---|---|---|---|---|
| EBITDA | 216 | 174 | -19.5% | 28 | 5 | -80.6% |
| EBITDA before special items | 216 | 185 | -14.5% | 28 | 16 | -42.1% |
| EBIT | 157 | 115 | -26.7% | -2 | -24 | - |
| EBIT before special items | 157 | 126 | -19.9% | -2 | -13 | - |
| Investments | 119 | 34 | -71.7% | 22 | 19 | -14.1% |
| 30/09/2014 | 31/03/2015 | Change | 31/12/2014 | 31/03/2015 | Change | |
|---|---|---|---|---|---|---|
| Stores | 137 | 135 | -2 | 136 | 135 | -1 |
| Selling space (1,000 sqm) | 1,446 | 1,428 | -18 | 1,430 | 1,428 | -2 |
| Employees (full-time basis) | 17,330 | 17,034 | -296 | 18,358 | 17,034 | -1,324 |
In H1 2014/15, EBIT stood at €115 million (H1 2013/14: €157 million). Special items amounted to €11 million. This concerns primarily store-related restructuring expenses. EBIT before special items dropped to €126 million (H1 2013/14: €157 million). The decline is due mostly to the fact that winter items had to be sold at a discount as the seasonal business progressed. In Q2 2014/15, EBIT before special items came to €-13 million (Q2 2013/14: €-2 million). Discounts and diminishing like-forlike sales resulted in this decrease.
During the first half of 2014/15, capex amounted to €34 million (H1 2013/34: €119 million).
As announced, the sales line closed 3 stores in Germany and opened 1 department store in Belgium.
As of 31 March 2015, the store network of Galeria Kaufhof comprised 135 stores: 119 in Germany and 16 in Belgium.
| € million | H1 2013/14 | H1 2014/15 | Change | Q2 2013/14 | Q2 2014/15 | Change |
|---|---|---|---|---|---|---|
| Sales | 5 | 26 | - | 2 | 12 | - |
| EBITDA | 41 | -19 | - | 9 | -21 | - |
| EBITDA before special items | 46 | -4 | - | 15 | -11 | - |
| EBIT | -51 | -101 | -98.6% | -37 | -66 | -78.7% |
| EBIT before special items | -41 | -78 | -93.2% | -27 | -48 | -73.2% |
| Investments | 74 | 63 | -15.0% | 22 | 31 | 45.4% |
| 30/09/2014 | 31/03/2015 | Change | 31/12/2014 | 31/03/2015 | Change | |
|---|---|---|---|---|---|---|
| Employees (full-time basis) | 8,970 | 9,505 | 535 | 9,590 | 9,505 | -85 |
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).
In H1 2014/15, sales in the Others segment totalled €26 million (H1 2013/14: €5 million). Since the first quarter of 2014/15, sales include, among other things, the 4 Real stores in Romania and commissions from the third-party business operated by METRO GROUP's Hong Kong-based purchasing organisation.
In H1 2014/15, EBIT stood at €-101 million (H1 2013/14: €-51 million). Special items amounted to €23 million and relate, in particular, to one-time expenses in connection with real estate activities. EBIT before special items amounted to €-78 million (H1 2013/14: €-41 million). This development is due, in particular, to lower net income from rental income/expenses.
On 16 April 2015, Media-Saturn acquired a majority stake in Dutch live shopping platform iBOOD.com, which it now controls. The company had sales of €36 million in 2014.
On 23 April 2015, Real and METRO Cash & Carry Germany announced the signing of a service agreement with MARKANT. In future, MARKANT will be responsible for the settlement of both companies' German merchandise business. The cooperation with MARKANT is expected to create synergies that will strengthen the competitiveness of Real and METRO Cash & Carry Germany.
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, the risk of a Greek exit from the Eurozone has increased substantially. 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. Despite the recent recovery of oil prices and the rouble exchange rate, 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. Japan's economy, however, is only slowly recovering from last year's recession. METRO GROUP continues to project global economic growth of 2.4% year-over-year in 2015.
The forecast is based on the current group structure and refers to currency-adjusted figures. In addition, it is based on the assumption of an unchanged geopolitical situation from the quarterly report for Q1 2014/15.
For the financial year 2014/15, METRO GROUP expects to see a slight rise in overall sales, 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 the 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 adjusted for currency effects with a difference development in the individual sales lines to rise slightly above the €1,727 million produced in the financial year 2013/14, including typical levels of income from real estate sales.
| 30/09/2014 | New store openings/ acquisitions H1 2014/15 |
Closures/ disposals H1 2014/15 |
31/03/2015 | Change (absolute) |
|
|---|---|---|---|---|---|
| METRO Cash & Carry | 766 | +10 | -17 | 759 | -7 |
| Media-Saturn | 986 | +21 | -1 | 1,006 | +20 |
| Real | 307 | +0 | -5 | 302 | -5 |
| Galeria Kaufhof | 137 | +1 | -3 | 135 | -2 |
| Total | 2,200* | +32 | -26 | 2,206* | +6 |
*Including 4 stores in the Others segment
| METRO Cash & Carry | Media-Saturn | Real | Galeria Kaufhof | METRO GROUP | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| H1 2014/15 | 31/3/2015 | H1 2014/15 | 31/3/2015 | H1 2014/15 | 31/3/2015 | H1 2014/15 | 31/3/2015 | H1 2014/15 | 31/3/2015 | |
| Germany | 107 | +1 | 416 | -5 | 302 | -3 | 119 | -7 | 944 | |
| Belgium | 15 | +1 | 24 | +1 | 16 | +2 | 55 | |||
| Denmark | -5 | 0 | -5 | 0 | ||||||
| France | 93 | 93 | ||||||||
| Italy | -1 | 48 | 117 | -1 | 165 | |||||
| Luxembourg | 2 | 2 | ||||||||
| Netherlands | 17 | +5 | 50 | +5 | 67 | |||||
| Austria | 12 | 47 | 59 | |||||||
| Portugal | 10 | 9 | 0 | 19 | ||||||
| Sweden | 27 | 27 | ||||||||
| Switzerland | +1 | 26 | +1 | 26 | ||||||
| Spain | 37 | +2 | 74 | +2 | 111 | |||||
| Western Europe (excl. Germany) |
-6 | 232 | +9 | 376 | +1 | 16 | +4 | 624 | ||
| Bulgaria | -1 | 13 | -1 | 13 | ||||||
| Greece | -9 | 10 | -9 | 10 | ||||||
| Kazakhstan | 8 | 8 | ||||||||
| Croatia | 7 | 7 | ||||||||
| Moldova | 3 | 3 | ||||||||
| Poland | 41 | +6 | 77 | +6 | 118 | |||||
| Romania | -1 | 31 | -1 | 31 | ||||||
| Russia | +7 | 80 | +4 | 67 | +11 | 147 | ||||
| Serbia | 10 | 10 | ||||||||
| Slovakia | 6 | 6 | ||||||||
| Czech Republic | 13 | 13 | ||||||||
| Turkey | 28 | 39 | 67 | |||||||
| Ukraine | 33 | 33 | ||||||||
| Hungary | 13 | 21 | 34 | |||||||
| Eastern Europe | -4 | 286 | +10 | 214 | +6 | 500 | ||||
| China | +3 | 81 | +3 | 81 | ||||||
| India | 16 | 16 | ||||||||
| Japan | 9 | 9 | ||||||||
| Pakistan | 9 | 9 | ||||||||
| Vietnam | 19 | 19 | ||||||||
| Asia | +3 | 134 | +3 | 134 | ||||||
| Total | -7 | 759 | +20 | 1,006 | -5 | 302 | -2 | 135 | +6 | 2,206* |
*Including 4 stores in the Others segment
H1 2014/15
by sales line
| Special items | Before special items | ||||||
|---|---|---|---|---|---|---|---|
| € million | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | |
| EBITDA | 1,524 | 1,413 | 63 | 91 | 1,586 | 1,504 | |
| thereof METRO Cash & Carry | 767 | 718 | 30 | 6 | 797 | 724 | |
| Media-Saturn | 396 | 460 | 9 | 28 | 405 | 488 | |
| Real | 104 | 81 | 21 | 32 | 125 | 113 | |
| Galeria Kaufhof | 216 | 174 | 0 | 11 | 216 | 185 | |
| Others | 41 | -19 | 5 | 14 | 46 | -4 | |
| Consolidation | 0 | -1 | -2 | 0 | -2 | -1 | |
| EBIT | 861 | 418 | 172 | 566 | 1,033 | 984 | |
| thereof METRO Cash & Carry | 451 | 504 | 132 | 15 | 583 | 519 | |
| Media-Saturn | 266 | 332 | 9 | 38 | 275 | 369 | |
| Real | 34 | -432 | 23 | 480 | 56 | 48 | |
| Galeria Kaufhof | 157 | 115 | 0 | 11 | 157 | 126 | |
| Others | -51 | -101 | 10 | 23 | -41 | -78 | |
| Consolidation | 5 | 1 | -2 | 0 | 2 | 1 | |
| Financial result | -320 | -175 | 35 | -10 | -284 | -185 | |
| Earnings before taxes (EBT) | 541 | 243 | 208 | 556 | 749 | 799 | |
| Income taxes | -299 | -181 | -39 | -180 | -338 | -361 | |
| Net profit or loss for the period | 242 | 62 | 168 | 376 | 411 | 438 | |
| Net profit or loss for the period attributable to non-controlling interests | 60 | 52 | 2 | 8 | 63 | 60 | |
| Net profit or loss for the period attributable to shareholders of METRO AG | 182 | 10 | 166 | 368 | 348 | 378 | |
| Earnings per share in € (basic = diluted) | 0.56 | 0.03 | 0.51 | 1.13 | 1.07 | 1.16 |
by region
| As reported | Special items | Before special items | |||||
|---|---|---|---|---|---|---|---|
| € million | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | |
| EBITDA | 1,524 | 1,413 | 63 | 91 | 1,586 | 1,504 | |
| thereof Germany | 613 | 496 | 41 | 59 | 654 | 555 | |
| Western Europe (excl. Germany) | 333 | 369 | 26 | 16 | 359 | 385 | |
| Eastern Europe | 529 | 473 | -12 | 9 | 517 | 482 | |
| Asia/Africa | 51 | 79 | 8 | 7 | 59 | 86 | |
| Consolidation | -2 | -4 | 0 | 0 | -2 | -4 | |
| EBIT | 861 | 418 | 172 | 566 | 1,033 | 984 | |
| thereof Germany | 325 | -230 | 47 | 515 | 372 | 285 | |
| Western Europe (excl. Germany) | 116 | 247 | 128 | 22 | 244 | 270 | |
| Eastern Europe | 398 | 363 | -11 | 12 | 388 | 375 | |
| Asia/Africa | 24 | 43 | 8 | 16 | 31 | 59 | |
| Consolidation | -2 | -4 | 0 | 0 | -2 | -4 | |
| Financial result | -320 | -175 | 35 | -10 | -284 | -185 | |
| Earnings before taxes (EBT) | 541 | 243 | 208 | 556 | 749 | 799 | |
| Income taxes | -299 | -181 | -39 | -180 | -338 | -361 | |
| Net profit or loss for the period | 242 | 62 | 168 | 376 | 411 | 438 | |
| Net profit or loss for the period attributable to non-controlling interests | 60 | 52 | 2 | 8 | 63 | 60 | |
| Net profit or loss for the period attributable to shareholders of METRO AG | 182 | 10 | 166 | 368 | 348 | 378 | |
| Earnings per share in € (basic = diluted) | 0.56 | 0.03 | 0.51 | 1.13 | 1.07 | 1.16 |
Q2 2014/15
by sales line
| As reported | Special items | Before special items | |||||
|---|---|---|---|---|---|---|---|
| € million | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | |
| EBITDA | 149 | 143 | 85 | 76 | 234 | 220 | |
| thereof METRO Cash & Carry | 121 | 131 | 26 | 9 | 147 | 140 | |
| Media-Saturn | 40 | 54 | 12 | 24 | 52 | 79 | |
| Real | -51 | -25 | 44 | 22 | -7 | -3 | |
| Galeria Kaufhof | 28 | 5 | 0 | 11 | 28 | 16 | |
| Others | 9 | -21 | 6 | 10 | 15 | -11 | |
| Consolidation | 3 | -2 | -3 | 0 | 1 | -2 | |
| EBIT | -233 | -590 | 193 | 550 | -40 | -40 | |
| thereof METRO Cash & Carry | -85 | 19 | 128 | 18 | 43 | 37 | |
| Media-Saturn | -26 | -13 | 12 | 33 | -14 | 20 | |
| Real | -87 | -506 | 46 | 469 | -41 | -36 | |
| Galeria Kaufhof | -2 | -24 | 0 | 11 | -2 | -13 | |
| Others | -37 | -66 | 10 | 19 | -27 | -48 | |
| Consolidation | 4 | -1 | -3 | 0 | 2 | -1 | |
| Financial result | -170 | -68 | 26 | -2 | -144 | -70 | |
| Earnings before taxes (EBT) | -403 | -658 | 219 | 548 | -184 | -110 | |
| Income taxes | 132 | 261 | -40 | -214 | 92 | 47 | |
| Net profit or loss for the period | -271 | -397 | 179 | 334 | -92 | -63 | |
| Net profit or loss for the period attributable to non-controlling interests | -2 | -3 | 2 | 7 | 0 | 4 | |
| Net profit or loss for the period attributable to shareholders of METRO AG | -269 | -394 | 177 | 327 | -92 | -67 | |
| Earnings per share in € (basic = diluted) | -0.82 | -1.21 | 0.54 | 1.00 | -0.28 | -0.21 |
Q2 2014/15
by region
| As reported | Special items | Before special items | ||||
|---|---|---|---|---|---|---|
| € million | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 |
| EBITDA | 149 | 143 | 85 | 76 | 234 | 220 |
| thereof Germany | -7 | -44 | 51 | 45 | 44 | 1 |
| Western Europe (excl. Germany) | 11 | 39 | 27 | 16 | 38 | 55 |
| Eastern Europe | 115 | 114 | 7 | 9 | 122 | 123 |
| Asia/Africa | 32 | 36 | 0 | 6 | 32 | 43 |
| Consolidation | -2 | -2 | 0 | 0 | -2 | -2 |
| EBIT | -233 | -590 | 193 | 550 | -40 | -40 |
| thereof Germany | -153 | -635 | 55 | 501 | -98 | -135 |
| Western Europe (excl. Germany) | -149 | -26 | 130 | 23 | -19 | -3 |
| Eastern Europe | 52 | 60 | 8 | 11 | 61 | 71 |
| Asia/Africa | 19 | 13 | 0 | 16 | 19 | 29 |
| Consolidation | -2 | -2 | 0 | 0 | -2 | -2 |
| Financial result | -170 | -68 | 26 | -2 | -144 | -70 |
| Earnings before taxes (EBT) | -403 | -658 | 219 | 548 | -184 | -110 |
| Income taxes | 132 | 261 | -40 | -214 | 92 | 47 |
| Net profit or loss for the period | -271 | -397 | 179 | 334 | -92 | -63 |
| Net profit or loss for the period attributable to non-controlling interests | -2 | -3 | 2 | 7 | 0 | 4 |
| Net profit or loss for the period attributable to shareholders of METRO AG | -269 | -394 | 177 | 327 | -92 | -67 |
| Earnings per share in € (basic = diluted) | -0.82 | -1.21 | 0.54 | 1.00 | -0.28 | -0.21 |
| H1 2013/14 H1 2014/15 Q2 2013/14 Q2 2014/15 33,047 32,677 14,326 14,366 -26,130 -25,884 -11,433 -11,472 6,917 6,793 2,893 2,894 664 607 291 268 -5,919 -5,775 -2,947 -2,903 -695 -734 -371 -388 -106 -473 -99 -461 861 418 -233 -590 1 0 1 0 3 0 3 0 35 34 18 22 -237 -192 -114 -95 -122 -17 -78 5 -320 -175 -170 -68 541 243 -403 -658 -299 -181 132 261 242 62 -271 -397 60 52 -2 -3 182 10 -269 -394 0.56 0.03 -0.82 -1.21 |
|||
|---|---|---|---|
| € million | |||
| Sales | |||
| Cost of sales | |||
| Gross profit on sales | |||
| Other operating income | |||
| Selling expenses | |||
| General administrative expenses | |||
| Other operating expenses | |||
| Earnings before interest and taxes EBIT | |||
| Result from associates and joint ventures | |||
| Other investment result | |||
| Interest income | |||
| Interest expenses | |||
| Other net financial result | |||
| Financial result | |||
| Earnings before taxes (EBT) | |||
| Income taxes | |||
| Net profit or loss for the period | |||
| Net profit or loss for the period attributable to non-controlling interests | |||
| Net profit or loss for the period attributable to shareholders of METRO AG | |||
| Earnings per share in € (basic = diluted) |
| € million | H1 2013/14 | H1 2014/15 | Q2 2013/14 | Q2 2014/15 |
|---|---|---|---|---|
| Net profit or loss for the period | 242 | 62 | -271 | -397 |
| Other comprehensive income | ||||
| Items of "other comprehensive income" that will not be reclassified to profit or loss | -65 | -151 | -65 | -26 |
| Remeasurements of defined benefit pension plans | -92 | -213 | -93 | -36 |
| Income tax attributable to items of "other comprehensive income" that will not be reclassified to profit or loss |
27 | 62 | 28 | 10 |
| Items of "other comprehensive income" that may be reclassified to profit or loss | -78 | -44 | -100 | 152 |
| Currency translation differences from translating the financial statements of foreign operations |
-145 | -52 | -111 | 144 |
| Effective portion of gains/losses from cash flow hedges | 4 | 8 | 3 | 9 |
| Gains/losses on remeasuring financial instruments in the category "available for sale" |
60 | 0 | 7 | 0 |
| Income tax attributable to items of "other comprehensive income" that may be reclassified subsequently to profit or loss |
3 | 0 | 1 | -1 |
| Other comprehensive income | -143 | -195 | -165 | 126 |
| Total comprehensive income | 99 | -133 | -436 | -271 |
| Total comprehensive income attributable to non-controlling interests | 62 | 52 | -4 | -3 |
| Total comprehensive income attributable to shareholders of METRO AG | 37 | -185 | -432 | -268 |
Assets
| € million | 30/09/2014 | 31/03/2014 | 31/03/2015 |
|---|---|---|---|
| Non-current assets | 15,572 | 16,110 | 14,686 |
| Goodwill | 3,671 | 3,671 | 3,193 |
| Other intangible assets | 380 | 365 | 373 |
| Tangible assets | 10,025 | 10,279 | 9,577 |
| Investment properties | 223 | 149 | 194 |
| Financial assets | 71 | 382 | 74 |
| Investments accounted for using the equity method | 95 | 132 | 94 |
| Other financial and non-financial assets | 272 | 310 | 320 |
| Deferred tax assets | 835 | 822 | 861 |
| Current assets | 12,584 | 12,204 | 14,025 |
| Inventories | 5,946 | 6,347 | 6,588 |
| Trade receivables | 560 | 638 | 576 |
| Financial assets | 1 | 8 | 1 |
| Other financial and non-financial assets | 2,9811 | 2,8981 | 3,026 |
| Entitlements to income tax refunds | 223 | 198 | 257 |
| Cash and cash equivalents | 2,406 | 2,074 | 3,009 |
| Assets held for sale | 4671 | 41 | 568 |
| 28,156 | 28,314 | 28,711 |
| € million | 30/09/2014 | 31/03/2014 | 31/03/2015 |
|---|---|---|---|
| Equity | 4,999 | 5,228 | 4,464 |
| Share capital | 835 | 835 | 835 |
| Capital reserve | 2,551 | 2,551 | 2,551 |
| Reserves retained from earnings | 1,602 | 1,828 | 1,053 |
| Non-controlling interests | 11 | 14 | 25 |
| Non-current liabilities | 6,921 | 7,038 | 7,774 |
| Provisions for pensions and similar obligations | 1,684 | 1,604 | 1,902 |
| Other provisions | 478 | 474 | 375 |
| Financial liabilities | 4,453 | 4,698 | 5,236 |
| Other financial and non-financial liabilities | 176 | 167 | 145 |
| Deferred tax liabilities | 130 | 95 | 116 |
| Current liabilities | 16,236 | 16,048 | 16,473 |
| Trade liabilities | 10,0751 | 9,9141 | 10,350 |
| Provisions | 615 | 563 | 582 |
| Financial liabilities | 2,615 | 2,971 | 2,767 |
| Other financial and non-financial liabilities | 2,528 | 2,417 | 2,398 |
| Income tax liabilities | 198 | 183 | 152 |
| Liabilities related to assets held for sale | 2051 | 0 | 224 |
| 28,156 | 28,314 | 28,711 |
| € million | H1 2013/14 | H1 2014/15 |
|---|---|---|
| EBIT | 861 | 418 |
| Depreciation/amortisation/impairment losses/reversal of impairment losses of assets excl. financial investments |
663 | 994 |
| Change in provisions for pensions and other provisions | -9 | -69 |
| Change in net working capital | -538 | -219 |
| Income taxes paid | -203 | -310 |
| Reclassification of gains (-) / losses (+) from the disposal of fixed assets | -12 | -8 |
| Other | -861 | 62 |
| Cash flow from operating activities | 676 | 868 |
| Acquisition of subsidiaries | 0 | 0 |
| Investments in property, plant and equipment (excl. finance leases) | -411 | -508 |
| Other investments | -53 | -239 |
| Disposals of subsidiaries | -66 | 63 |
| Disposal of long-term assets | 53 | 66 |
| Gains (+) / losses (-) from the disposal of fixed assets | 12 | 8 |
| Cash flow from investing activities | -465 | -610 |
| Dividends paid | ||
| to METRO AG shareholders | 0 | -3162 |
| to other shareholders | -75 | -383 |
| Redemption of liabilities from put options of non-controlling interests | -1 | 0 |
| Proceeds from long-term borrowings | 959 | 2,259 |
| Redemption of borrowings | -1,312 | -1,410 |
| Interest paid | -231 | -190 |
| Interest received | 36 | 33 |
| Profit and loss transfers and other financing activities | -67 | -24 |
| Cash flow from financing activities | -691 | 314 |
| Total cash flows | -480 | 572 |
| Currency effects on cash and cash equivalents | -17 | 31 |
| Total change in cash and cash equivalents | -497 | 603 |
| Cash and cash equivalents as of 1 October | 2,564 | 2,406 |
| Cash and cash equivalents shown under IFRS 5 assets | 7 1 |
3 |
| Cash and cash equivalents on 1 October | 2,571 | 2,409 |
| Cash and cash equivalents on 31 March | 2,074 | 3,009 |
| Cash and cash equivalents shown under IFRS 5 assets | 0 1 |
3 |
| Cash and cash equivalents on 31 March | 2,074 | 3,012 |
1Changed separate recognition 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 from the remeasurement of financial assets in the category "available for sale" |
Currency translation differences from translating the financial statements of foreign operations |
Remeasurements 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 | 4 | 60 | -147 | -92 | 30 |
| Capital balance from acquisitions of shares |
0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other changes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 31/03/2014 | 835 | 2,551 | 65 | 130 | -554 | -703 | 204 |
| 01/10/2014 | 835 | 2,551 | 82 | 0 | -441 | -865 | 201 |
| Dividends | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total comprehensive income | 0 | 0 | 8 | 0 | -52 | -213 | 62 |
| Capital balance from acquisitions of shares |
0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other changes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 31/03/2015 | 835 | 2,551 | 90 | 0 | -493 | -1,078 | 263 |
Continued statement of changes in equity
| € million | Other reserves retained from earnings |
Total reserves retained from earnings |
Total equity before non-controlling interests |
thereof attribut able to "other comprehensive income" |
Non-controlling interests |
thereof attribut able to "other comprehensive income" |
Total equity |
|---|---|---|---|---|---|---|---|
| 01/10/2013 | 2,506 | 1,793 | 5,179 | 27 | 5,206 | ||
| Dividends | 0 | 0 | 0 | -75 | -75 | ||
| Total comprehensive income | 182 | 37 | 37 | (-145) | 62 | (2) | 99 |
| Capital balance from acquisitions of shares |
0 | 0 | 0 | 0 | 0 | ||
| Other changes | -2 | -2 | -2 | 0 | -2 | ||
| 31/03/2014 | 2,686 | 1,828 | 5,214 | 14 | 5,228 | ||
| 01/10/2014 | 2,625 | 1,602 | 4,988 | 11 | 4,999 | ||
| Dividends | -3161 | -316 | -316 | -382 | -354 | ||
| Total comprehensive income | 10 | -185 | -185 | (-195) | 52 | (0) | -133 |
| Capital balance from acquisitions of shares |
-1 | -1 | -1 | -1 | -2 | ||
| Other changes | -47 | -47 | -47 | 1 | -46 | ||
| 31/03/2015 | 2,271 | 1,053 | 4,439 | 25 | 4,464 |
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
| METRO Cash & Carry | Media-Saturn | Real | Galeria Kaufhof | |||||
|---|---|---|---|---|---|---|---|---|
| € million | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 |
| External sales (net) | 15,369 | 14,889 | 11,482 | 12,035 | 4,507 | 4,059 | 1,684 | 1,667 |
| Internal sales (net) | 27 | 7 | 2 | 1 | 0 | 4 | 0 | 0 |
| Sales (net) | 15,396 | 14,895 | 11,484 | 12,036 | 4,507 | 4,063 | 1,684 | 1,667 |
| EBITDA | 767 | 718 | 396 | 460 | 104 | 81 | 216 | 174 |
| Depreciation/amortisation/impairment | 316 | 215 | 132 | 129 | 71 | 513 | 59 | 59 |
| Reversals of impairment losses | 0 | 1 | 2 | 1 | 0 | 0 | 0 | 0 |
| EBIT | 451 | 504 | 266 | 332 | 34 | -432 | 157 | 115 |
| Investments | 102 | 166 | 107 | 81 | 36 | 77 | 119 | 34 |
| Segment assets | 11,5311 | 11,414 | 5,3951 | 5,518 | 3,013 | 2,925 | 2,187 | 2,195 |
| thereof non-current | (8,035) | (7,691) | (1,596) | (1,461) | (2,062) | (1,645) | (1,610) | (1,622) |
| Segment liabilities | 5,2461 | 5,557 | 5,5241 | 6,044 | 1,252 | 1,518 | 848 | 938 |
| Selling space (1,000 sqm) | 5,596 | 5,466 | 3,068 | 3,080 | 2,266 | 2,078 | 1,445 | 1,428 |
| Locations (number) | 761 | 759 | 975 | 1,006 | 325 | 302 | 137 | 135 |
| Others | Consolidation | METRO GROUP | ||||
|---|---|---|---|---|---|---|
| € million | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 |
| External sales (net) | 5 | 26 | 0 | 0 | 33,047 | 32,677 |
| Internal sales (net) | 2,955 | 623 | -2,983 | -634 | 0 | 0 |
| Sales (net) | 2,960 | 649 | -2,983 | -634 | 33,047 | 32,677 |
| EBITDA | 41 | -19 | 0 | -1 | 1,524 | 1,413 |
| Depreciation/amortisation/impairment | 91 | 83 | -4 | -2 | 665 | 997 |
| Reversals of impairment losses | 0 | 1 | 0 | 0 | 2 | 3 |
| EBIT | -51 | -101 | 5 | 1 | 861 | 418 |
| Investments | 74 | 63 | 0 | 0 | 438 | 421 |
| Segment assets | 2,663 | 2,064 | -667 | -485 | 24,1231 | 23,630 |
| thereof non-current | (1,510) | (1,247) | (-49) | (-47) | (14,764) | (13,619) |
| Segment liabilities | 2,184 | 1,640 | -539 | -419 | 14,5141 | 15,279 |
| Selling space (1,000 sqm) | 0 | 29 | 0 | 0 | 12,375 | 12,081 |
| Locations (number) | 0 | 4 | 0 | 0 | 2,198 | 2,206 |
| Germany | Western Europe (excl. Germany) |
Eastern Europe | Asia/Africa | |||||
|---|---|---|---|---|---|---|---|---|
| € million | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 |
| External sales (net) | 13,508 | 13,623 | 9,853 | 9,953 | 7,780 | 6,852 | 1,906 | 2,248 |
| Internal sales (net) | 113 | 86 | 63 | 80 | 10 | 5 | 17 | 17 |
| Sales (net) | 13,620 | 13,709 | 9,917 | 10,033 | 7,790 | 6,857 | 1,922 | 2,265 |
| EBITDA | 613 | 496 | 333 | 369 | 529 | 473 | 51 | 79 |
| Depreciation/amortisation/impairment | 288 | 726 | 217 | 123 | 133 | 112 | 27 | 36 |
| Reversals of impairment losses | 0 | 0 | 0 | 1 | 2 | 2 | 0 | 0 |
| EBIT | 325 | -230 | 116 | 247 | 398 | 363 | 24 | 43 |
| Investments | 288 | 219 | 71 | 78 | 55 | 97 | 24 | 27 |
| Segment assets | 10,9281 | 10,612 | 6,1241 | 6,217 | 5,8501 | 5,326 | 1,6151 | 1,896 |
| thereof non-current | (6,382) | (5,715) | (3,439) | (3,418) | (3,948) | (3,472) | (998) | (1,016) |
| Segment liabilities | 6,8041 | 7,299 | 4,3261 | 4,573 | 2,7021 | 2,471 | 9401 | 1,261 |
| Selling space (1,000 sqm) | 5,772 | 5,697 | 2,846 | 2,795 | 2,990 | 2,795 | 768 | 794 |
| Locations (number) | 951 | 944 | 616 | 624 | 502 | 504 | 129 | 134 |
| International | METRO GROUP | |||||
|---|---|---|---|---|---|---|
| € million | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 | H1 2013/14 | H1 2014/15 |
| External sales (net) | 19,539 | 19,053 | 0 | 0 | 33,047 | 32,677 |
| Internal sales (net) | 90 | 101 | -202 | -187 | 0 | 0 |
| Sales (net) | 19,629 | 19,155 | -202 | -187 | 33,047 | 32,677 |
| EBITDA | 913 | 921 | -2 | -4 | 1,524 | 1,413 |
| Depreciation/amortisation/impairment | 377 | 271 | 0 | 0 | 665 | 997 |
| Reversals of impairment losses | 2 | 3 | 0 | 0 | 2 | 3 |
| EBIT | 538 | 653 | -2 | -4 | 861 | 418 |
| Investments | 150 | 202 | 0 | 0 | 438 | 421 |
| Segment assets | 13,5891 | 13,438 | -394 | -420 | 24,1231 | 23,630 |
| thereof non-current | (8,386) | (7,906) | (-3) | (-3) | (14,764) | (13,619) |
| Segment liabilities | 7,9681 | 8,305 | -258 | -325 | 14,5141 | 15,279 |
| Selling space (1,000 sqm) | 6,604 | 6,384 | 0 | 0 | 12,375 | 12,081 |
| Locations (number) | 1,247 | 1,262 | 0 | 0 | 2,198 | 2,206 |
| METRO Cash & Carry Media-Saturn |
Real | Galeria Kaufhof | ||||||
|---|---|---|---|---|---|---|---|---|
| € million | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 |
| External sales (net) | 6,861 | 6,691 | 4,881 | 5,161 | 1,900 | 1,829 | 682 | 674 |
| Internal sales (net) | 13 | 2 | 0 | 1 | 0 | 2 | 0 | 0 |
| Sales (net) | 6,874 | 6,694 | 4,881 | 5,161 | 1,900 | 1,831 | 682 | 674 |
| EBITDA | 121 | 131 | 40 | 54 | -51 | -25 | 28 | 5 |
| Depreciation/amortisation/impairment | 206 | 112 | 68 | 68 | 36 | 481 | 29 | 29 |
| Reversals of impairment losses | 0 | 0 | 2 | 1 | 0 | 0 | 0 | 0 |
| EBIT | -85 | 19 | -26 | -13 | -87 | -506 | -2 | -24 |
| Investments | 42 | 89 | 49 | 40 | 30 | 65 | 22 | 19 |
| Segment assets | 11,5311 | 11,414 | 5,3951 | 5,518 | 3,013 | 2,925 | 2,187 | 2,195 |
| thereof non-current | (8,035) | (7,691) | (1,596) | (1,461) | (2,062) | (1,645) | (1,610) | (1,622) |
| Segment liabilities | 5,2461 | 5,557 | 5,5241 | 6,044 | 1,252 | 1,518 | 848 | 938 |
| Selling space (1,000 sqm) | 5,596 | 5,466 | 3,068 | 3,080 | 2,266 | 2,078 | 1,445 | 1,428 |
| Locations (number) | 761 | 759 | 975 | 1,006 | 325 | 302 | 137 | 135 |
| Others | METRO GROUP | |||||
|---|---|---|---|---|---|---|
| € million | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 |
| External sales (net) | 2 | 12 | 0 | 0 | 14,326 | 14,366 |
| Internal sales (net) | 1,318 | 24 | -1,332 | -29 | 0 | 0 |
| Sales (net) | 1,320 | 36 | -1,332 | -29 | 14,326 | 14,366 |
| EBITDA | 9 | -21 | 3 | -2 | 149 | 143 |
| Depreciation/amortisation/impairment | 46 | 46 | -1 | -1 | 384 | 735 |
| Reversals of impairment losses | 0 | 1 | 0 | 0 | 2 | 2 |
| EBIT | -37 | -66 | 4 | -1 | -233 | -590 |
| Investments | 22 | 31 | 0 | 0 | 164 | 245 |
| Segment assets | 2,663 | 2,064 | -667 | -485 | 24,1231 | 23,630 |
| thereof non-current | (1,510) | (1,247) | (-49) | (-47) | (14,764) | (13,619) |
| Segment liabilities | 2,184 | 1,640 | -539 | -419 | 14,5141 | 15,279 |
| Selling space (1,000 sqm) | 0 | 29 | 0 | 0 | 12,375 | 12,081 |
| Locations (number) | 0 | 4 | 0 | 0 | 2,198 | 2,206 |
| Germany | Western Europe (excl. Germany) |
Eastern Europe | Asia/Africa | |||||
|---|---|---|---|---|---|---|---|---|
| € million | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 |
| External sales (net) | 5,799 | 5,905 | 4,322 | 4,361 | 3,170 | 2,813 | 1,036 | 1,287 |
| Internal sales (net) | 52 | 44 | 34 | 39 | 4 | 2 | 9 | 8 |
| Sales (net) | 5,851 | 5,950 | 4,356 | 4,400 | 3,173 | 2,815 | 1,045 | 1,295 |
| EBITDA | -7 | -44 | 11 | 39 | 115 | 114 | 32 | 36 |
| Depreciation/amortisation/impairment | 145 | 591 | 160 | 65 | 66 | 55 | 14 | 23 |
| Reversals of impairment losses | 0 | 0 | 0 | 0 | 2 | 1 | 0 | 0 |
| EBIT | -153 | -635 | -149 | -26 | 52 | 60 | 19 | 13 |
| Investments | 102 | 143 | 34 | 41 | 23 | 42 | 5 | 19 |
| Segment assets | 10,9281 | 10,612 | 6,1241 | 6,217 | 5,8501 | 5,326 | 1,6151 | 1,896 |
| thereof non-current | (6,382) | (5,715) | (3,439) | (3,418) | (3,948) | (3,472) | (998) | (1,016) |
| Segment liabilities | 6,8041 | 7,299 | 4,3261 | 4,573 | 2,7021 | 2,471 | 9401 | 1,261 |
| Selling space (1,000 sqm) | 5,772 | 5,697 | 2,846 | 2,795 | 2,990 | 2,795 | 768 | 794 |
| Locations (number) | 951 | 944 | 616 | 624 | 502 | 504 | 129 | 134 |
| International | METRO GROUP | |||||
|---|---|---|---|---|---|---|
| € million | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 | Q2 2013/14 | Q2 2014/15 |
| External sales (net) | 8,528 | 8,461 | 0 | 0 | 14,326 | 14,366 |
| Internal sales (net) | 48 | 49 | -100 | -94 | 0 | 0 |
| Sales (net) | 8,575 | 8,510 | -100 | -94 | 14,326 | 14,366 |
| EBITDA | 158 | 189 | -2 | -2 | 149 | 143 |
| Depreciation/amortisation/impairment | 239 | 143 | 0 | 0 | 384 | 735 |
| Reversals of impairment losses | 2 | 2 | 0 | 0 | 2 | 2 |
| EBIT | -78 | 47 | -2 | -2 | -233 | -590 |
| Investments | 62 | 102 | 0 | 0 | 164 | 245 |
| Segment assets | 13,5891 | 13,438 | -394 | -420 | 24,1231 | 23,630 |
| thereof non-current | (8,386) | (7,906) | (-3) | (-3) | (14,764) | (13,619) |
| Segment liabilities | 7,9681 | 8,305 | -258 | -325 | 14,5141 | 15,279 |
| Selling space (1,000 sqm) | 6,604 | 6,384 | 0 | 0 | 12,375 | 12,081 |
| Locations (number) | 1,247 | 1,262 | 0 | 0 | 2,198 | 2,206 |
These unaudited interim consolidated financial statements as at 31 March 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 are unaudited, but they were subject to an auditor's review in accordance with Section 37w (5) of the German Securities Trading Act (WpHG).
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 of 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 of 30 September 2014 (see Annual Report 2013/14, pages 184-203).
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. Three 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 MET-RO 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 of the balance sheet 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 considered met. In particular, it determines criteria for the existence of a legally enforceable right.
The retrospective application of this specification led to the following changes. The balance sheet was extended by €174 million during the comparable period until 31 March 2014, with receivables from suppliers and trade payables accounting for €174 million and €174 million, respectively. The balance sheet was also extended by €152 million as of the end of the last financial year as of 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. METRO AG will comply with these new disclosure requirements for the first time in its consolidated financial statements as of 30 September 2015. 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.
Depreciation/amortisation/impairment losses of €998 million (H1 2013/14: €666 million) include impairment losses of €480 million (H1 2013/14: €118 million). €477 million of this amount are related to Q2 2014/15 (Q2 2013/14: €114 million). Thereof, €446 million are attributable to goodwill impairment losses related to Real Germany. The business development of the cash-generating unit of Real Germany within the first half of the financial year that ended on 31 March 2015 was considered as a triggering event for a possible goodwill impairment. The goodwill impairment test required under IAS 36 resulted in a goodwill impairment of €446 million at Real Germany as goodwill was reduced to €638 million from €1,084 million. The impairment was shown within the "Other operating expenses" item.
The impairment test was performed on the level of a group of cash-generating units by comparing the cumulative carrying amounts of the group of cash-generating units with the recoverable amount. The recoverable amount is defined as fair value less costs to sell which is calculated based on discounted future cash flows. The fair value less costs to sell was calculated in the same manner as in the annual financial statements as of 30 September 2014 and is based on the following assumptions:
In addition, a full goodwill impairment of €9 million was recognised for the group of cash-generating units of METRO Cash & Carry in Pakistan. With exception of this group of cashgenerating units, no indication for goodwill impairment was identified for any other group of cash-generating units.
The attribution of depreciation/amortisation/impairment losses in the income statement and the affected asset categories is as follows:
| € million | H1 2013/14 | H1 2014/15 |
|---|---|---|
| Cost of sales | 10 | 9 |
| Selling expenses | 504 | 477 |
| General administrative expenses | 64 | 56 |
| Other operating expenses | 88 | 455 |
| Financial result | 0 | 1 |
| 666 | 998 | |
| € million | H1 2013/14 | H1 2014/15 |
| Goodwill | 88 | 455 |
| Other intangible assets | 71 | 62 |
| Tangible assets | 498 | 464 |
| 16 | ||
| Investment properties | 8 | |
| Financial assets1 | 0 | 1 |
| Assets held for sale | 0 | 0 |
1 Including investments accounted for using the equity method
| € million | Q2 2013/14 | Q2 2014/15 |
|---|---|---|
| Cost of sales | 5 | 4 |
| Selling expenses | 261 | 248 |
| General administrative expenses | 30 | 28 |
| Other operating expenses | 88 | 455 |
| Financial result | 0 | 0 |
| 384 | 735 | |
| € million | Q2 2013/14 | Q2 2014/15 |
|---|---|---|
| Goodwill | 88 | 455 |
| Other intangible assets | 35 | 30 |
| Tangible assets | 256 | 237 |
| Investment properties | 5 | 13 |
| Financial assets1 | 0 | 0 |
| Assets held for sale | 0 | 0 |
| 384 | 735 |
1 Including investments accounted for using the equity method
Impairments of capitalised financial instruments measured at amortised cost amount to €32 million (H1 2013/14: €33 million). €16 million of this amount are related to Q2 2014/15 (Q2 2013/14: €15 million).
On 18 February 2015, METRO Cash & Carry signed agreements regarding the purchase of all 19 Vietnamese wholesale stores including the associated real estate portfolios by TCC Holding Co., Ltd. (TCC). On 7 August 2014, METRO Cash & Carry had signed an agreement with Thai retail group Berli JuckerPublic Company Limited (BJC) regarding the sale of the Vietnamese wholesale business. This was rejected by a 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 continues to expect a successful closing of this transaction. 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 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 of 31 March 2015. The "assets held for sale" of €221 million shown in this context in the consolidated financial statements as of 30 September 2014 increased to €270 million in the current financial year as operations were continued. Correspondingly, "liabilities related to assets held for sale" increased from €192 million to €224 million during this period. As of 31 March 2015, the breakdown of these assets and liabilities is as follows:
| € million | 31/3/2015 |
|---|---|
| Assets | |
| Tangible assets | 134 |
| Other financial and non-financial assets (non-current) | 57 |
| Inventories | 46 |
| Trade receivables | 4 |
| Other financial and non-financial assets (current) | 26 |
| Cash and cash equivalents | 3 |
| 270 | |
| Liabilities | |
| Provisions for pensions and similar obligations | 1 |
| Financial liabilities (non-current) | 72 |
| Trade liabilities | 56 |
| Provisions (current) | 6 |
| Financial liabilities (current) | 76 |
| Other financial and non-financial liabilities (current) | 13 |
| 224 |
In the METRO Cash & Carry segment, assets and liabilities held for sale that are related to the Vietnamese wholesale business contribute €260 million to segment assets and €68 million to segment liabilities.
EBIT-effective expenses of €7 million in connection with the sale were incurred in the first half of the financial year 2014/15. They are reported under general administrative expenses and are attributable to the METRO Cash & Carry segment. In addition, the net financial result includes €8 million in income, with €9 million shown in the other financial result and €-1 million shown in the net 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 of 31 March 2015. The assets and liabilities disposed of as a result of the deconsolidations can be broken down as follows:
| € million | 31/3/2015 |
|---|---|
| Assets | |
| Goodwill | 25 |
| Tangible assets | 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 pensions 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 disposal 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 net financial result. The deconsolidation had no impact on other comprehensive income.
Divestment of Real's Eastern European business
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. At €2 million, and after consideration of €-1 million in currency effects, these assets are recognised in "assets held for sale" and contribute the same amount to segment assets in the Others segment. "Liabilities related to assets held for sale" do not exist for these additional assets.
The value of individual properties held for sale increased from €236 million to €296 million during the first half of the financial year 2014/15 as a result of the reclassification of individual properties with a total value of €75 million from non-current assets to "assets held for sale", the sale of real estate assets with a total value of €10 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 (€172 million) and Others (€124 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 net profit of €319 million for the financial year 2013/14, with the remaining amount carried forward to the new account. The dividend was paid out on 23 February 2015.
In H1 2014/15, an amount of €213 million (H1 2013/14: €-92 million) from the remeasurement of defined-benefit pension plans as of 31 March 2015 was recognised in METRO AG's other comprehensive income outside of profit or loss, resulting in a reduction of 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 during Q2 2014/15, the retirement age and the mortality assumption resulting from a modified assessment.
The national actuarial rates of interest and inflation rates have changed as follows:
| 30/09/2014 | 31/03/2015 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| % | Germany Netherlands | United Kingdom |
Belgium | Other countries |
GermanyNetherlands | United Kingdom |
Belgium | Other countries |
||
| Actuarial interest rate | 2.60 | 2.70 | 4.20 | 2.60 | 2.60 | 1.40-1.50 | 1.60 | 3.24 | 1.50 | 1.50 |
| Inflation rate | 2.00 | 2.00 | 2.50 | 2.00 | 1.92 | 1.50 | 2.00 | 2.50 | 2.00 | 1.92 |
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 carrying amounts and fair values of recognised financial instruments are as follows:
| 31/03/2014 | |||||
|---|---|---|---|---|---|
| Balance sheet value | |||||
| (Amortised) | Fair value | Fair value | |||
| € million | Carrying amount | cost | through profit or loss |
outside of profit or loss |
Fair value |
| Assets | 28,314 | n/a | n/a | n/a | n/a |
| Loans and receivables | 2,885 | 2,885 | 0 | 0 | 2,888 |
| Loans and advance credit granted | 62 | 62 | 0 | 0 | 65 |
| Receivables due from suppliers1 | 1,593 | 1,593 | 0 | 0 | 1,593 |
| Trade receivables | 638 | 638 | 0 | 0 | 638 |
| Miscellaneous financial assets | 593 | 593 | 0 | 0 | 593 |
| 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 | 35 | 0 | 35 | 0 | 35 |
| Derivative financial instruments not in a hedging relationship according to IAS 39 |
35 | 0 | 35 | 0 | 35 |
| Securities | 0 | 0 | 0 | 0 | 0 |
| Other financial assets | 0 | 0 | 0 | 0 | 0 |
| Available for sale | 331 | 17 | 0 | 313 | n/a |
| Investments | 330 | 17 | 0 | 312 | n/a |
| Securities | 1 | 0 | 0 | 1 | 1 |
| Miscellaneous financial assets | 0 | 0 | 0 | 0 | 0 |
| Derivative financial instruments within hedges under IAS 39 |
0 | 0 | 0 | 0 | 0 |
| Cash and cash equivalents | 2,074 | 2,074 | 0 | 0 | 2,074 |
| Receivables from finance lease (amount according to IAS 17) |
2 | n/a | n/a | n/a | 2 |
| Assets not classified according to IFRS 7 | 22,986 | n/a | n/a | n/a | n/a |
| Equity and liabilities | 28,314 | n/a | n/a | n/a | n/a |
| Held for trading | 8 | 0 | 8 | 0 | 8 |
| Derivative financial instruments not in a hedging relationship according to IAS 39 |
8 | 0 | 8 | 0 | 8 |
| Miscellaneous financial liabilities | 0 | 0 | 0 | 0 | 0 |
| Other financial liabilities | 17,711 | 17,640 | 0 | 71 | 17,995 |
| Financial liabilities excl. finance leases (incl. hedged items in hedging relationships according to IAS 39) |
6,319 | 6,319 | 0 | 0 | 6,604 |
| Trade liabilities1 | 9,914 | 9,914 | 0 | 0 | 9,914 |
| Miscellaneous financial liabilities | 1,478 | 1,407 | 0 | 71 | 1,478 |
| Derivative financial instruments within hedges under IAS 39 |
14 | 0 | 0 | 14 | 14 |
| Liabilities from finance lease (amount according to IAS 17) |
1,350 | n/a | n/a | n/a | 1,580 |
| Liabilities not classified according to IFRS 7 | 9,231 | n/a | n/a | n/a | n/a |
| Unrealised gain (+)/loss (–) from total difference between fair value and carrying amounts |
-512 |
| 31/03/2015 | |||||
|---|---|---|---|---|---|
| Balance sheet value | |||||
| (Amortised) | Fair value | Fair value | |||
| € million | Carrying amount | cost | through profit or loss |
outside of profit or loss |
Fair value |
| Assets | 28,711 | n/a | n/a | n/a | n/a |
| Loans and receivables | 2,765 | 2,765 | 0 | 0 | 2,765 |
| Loans and advance credit granted | 57 | 57 | 0 | 0 | 57 |
| Receivables due from suppliers | 1,553 | 1,553 | 0 | 0 | 1,553 |
| Trade receivables | 576 | 576 | 0 | 0 | 576 |
| Miscellaneous financial assets | 579 | 579 | 0 | 0 | 579 |
| 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 | 21 | 0 | 21 | 0 | 21 |
| Derivative financial instruments not in a hedging relationship according to IAS 39 |
21 | 0 | 21 | 0 | 21 |
| Securities | 0 | 0 | 0 | 0 | 0 |
| Miscellaneous financial assets | 0 | 0 | 0 | 0 | 0 |
| Available for sale | 196 | 20 | 0 | 176 | n/a |
| Investments | 20 | 20 | 0 | 0 | n/a |
| Securities | 176 | 0 | 0 | 176 | 176 |
| Miscellaneous financial assets | 0 | 0 | 0 | 0 | 0 |
| Derivative financial instruments within hedges under IAS 39 |
68 | 0 | 0 | 68 | 68 |
| Cash and cash equivalents | 3,009 | 3,009 | 0 | 0 | 3,009 |
| Receivables from finance lease (amount according to IAS 17) |
0 | n/a | n/a | n/a | 0 |
| Assets not classified according to IFRS 7 | 22,652 | n/a | n/a | n/a | n/a |
| Equity and liabilities | 28,711 | n/a | n/a | n/a | n/a |
| Held for trading | 63 | 0 | 63 | 0 | 63 |
| Derivative financial instruments not in a hedging relationship according to IAS 39 |
63 | 0 | 63 | 0 | 63 |
| Miscellaneous financial liabilities | 0 | 0 | 0 | 0 | 0 |
| Other financial liabilities | 18,496 | 18,374 | 48 | 73 | 18,748 |
| Financial liabilities excl. finance leases (incl. hedged items in hedging relationships according to IAS 39) |
6,735 | 6,735 | 0 | 0 | 6,988 |
| Trade liabilities | 10,350 | 10,350 | 0 | 0 | 10,350 |
| Miscellaneous financial liabilities | 1,410 | 1,289 | 48 | 73 | 1,411 |
| Derivative financial instruments within hedges under IAS 39 |
1 | 0 | 0 | 1 | 1 |
| Liabilities from finance lease (amount according to IAS 17) |
1,268 | n/a | n/a | n/a | 1,583 |
| Liabilities not classified according to IFRS 7 | 8,884 | n/a | n/a | n/a | n/a |
| Unrealised gain (+)/loss (–) from total difference between fair value and carrying amounts |
-568 |
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 €20 million (prior year: €330 million) €20 million (prior year: €17 million) are recognised at historical cost 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: €312 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 €48 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:
| 31/03/2014 | 31/03/2015 | |||||||
|---|---|---|---|---|---|---|---|---|
| € million | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
| Assets | 348 | 313 | 35 | 0 | 265 | 176 | 89 | 0 |
| Held for trading | ||||||||
| Derivative financial instruments not in a hedging relationship according to IAS 39 |
35 | 0 | 35 | 0 | 21 | 0 | 21 | 0 |
| Available for sale | ||||||||
| Investments | 312 | 312 | 0 | 0 | 0 | 0 | 0 | 0 |
| Securities | 1 | 1 | 0 | 0 | 176 | 176 | 0 | 0 |
| Derivative financial instruments in a hedging relationship according to IAS 39 |
0 | 0 | 0 | 0 | 68 | 0 | 68 | 0 |
| Equity and liabilities | 93 | 0 | 22 | 71 | 185 | 0 | 64 | 122 |
| Held for trading | ||||||||
| Derivative financial instruments not in a hedging relationship according to IAS 39 |
8 | 0 | 8 | 0 | 63 | 0 | 63 | 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 |
14 | 0 | 14 | 0 | 1 | 0 | 1 | 0 |
| Total | 255 | 313 | 13 | -71 | 80 | 176 | 26 | -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 (31/03/2015: €73 million; 31/03/2014: €71 million) and in consideration of contractual value limits (31/03/2015: €48 million; 31/03/2014: €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 October | 78 | 72 |
| Transfer to level 3 | 0 | 0 |
| Transfer from level 3 | 0 | 0 |
| Total gains (-) or losses (+) for the period | 0 | 1 |
| Net 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 31 March | 71 | 122 |
The changes in value of put options existing as of 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 other net 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 of 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.
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 | 31/3/2014 | 31/3/2015 |
|---|---|---|
| Segment assets1 | 24,123 | 23,630 |
| Non-current and current financial investments | 390 | 75 |
| Investments accounted for using the equity method | 132 | 94 |
| Cash and cash equivalents | 2,074 | 3,009 |
| Deferred tax assets | 822 | 861 |
| Entitlements to income tax refunds | 198 | 257 |
| Other entitlements to tax refunds2 | 508 | 478 |
| Assets held for sale | 0 | 10 |
| Receivables from other financial transactions3 | 46 | 275 |
| Other | 21 | 22 |
| Group assets | 28,314 | 28,711 |
1Adjustment of previous year (see chapter "Notes to the accounting principles and methods for interim consolidated financial statements") Included in the balance sheet item "other financial and non-financial assets"
(current) 3 Included in the balance sheet items "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 | 31/3/2014 | 31/3/2015 |
|---|---|---|
| Segment liabilities1 | 14,514 | 15,279 |
| Non-current and current financial liabilities | 7,669 | 8,003 |
| Deferred tax liabilities | 95 | 116 |
| Income tax liabilities | 183 | 152 |
| Income tax provisions2 | 93 | 54 |
| Other tax liabilities3 | 382 | 283 |
| Liabilities from other financial transactions3 | 25 | 67 |
| Liabilities to non-controlling interests3 | 73 | 123 |
| Liabilities related to assets held for sale | 0 | 156 |
| Interest for other provisions3 | 45 | 13 |
| Other | 7 | 1 |
| Group liabilities | 23,086 | 24,247 |
1Adjustment 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)
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 | 31/3/2014 | 31/3/2015 |
|---|---|---|
| Liabilities from suretyships and guarantees | 20 | 13 |
| Liabilities from guarantee and warranty contracts | 471 | 40 |
| 67 | 53 |
1Changed disclosure from previous year
Contingent liabilities have not changed considerably 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 of 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 of 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:
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 of 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, 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 of 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 non-admission 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.
In 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 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.
As reported, 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 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 Federal Cartel Office's investigation is ongoing; in October 2014 and February 2015, the authority sent a comprehensive hearing notification concerning one part of the proceedings to METRO AG and METRO Dienstleistungs-Holding GmbH. In this notification, accusations are levelled against these companies 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 another sub-complex, however, the Federal Cartel Offices recently closed proceedings.
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 existence of a liability is more likely than not, appropriate risk provisions have been formed for these proceedings.
On 16 April 2015, Media-Saturn acquired a majority stake in Dutch live shopping platform iBOOD.com, which it now controls. The company had sales of €36 million in 2014.
On 23 April 2015, Real and METRO Cash & Carry Germany announced the signing of a service agreement with MARKANT. In future, MARKANT will be responsible for the settlement of both companies' German merchandise business. The cooperation with MARKANT is expected to create synergies that will strengthen the competitiveness of Real and METRO Cash & Carry Germany.
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 the 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 short-term incentive and a portion of the long-term incentive.
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining financial year.
Düsseldorf, 4 May 2015
The Management Board
We have reviewed the condensed interim consolidated financial statements of the METRO AG – comprising the balance sheet, the income statement, total comprehensive income reconciliation, cash flow statement, statement of changes in equity and selected explanatory notes – together with the interim group management report of the METRO AG, for the period from 1 October 2014 to 31 March 2015 that are part of the semi-annual financial report according to § 37w WpHG ["Wertpapierhandelsgesetz": "German Securities Trading Act"]. The preparation of the condensed interim consolidated financial statements in accordance with those IFRS applicable to interim financial reporting as adopted by the EU, and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management reports, is the responsibility of the Company's management. Our responsibility is to issue a report on the condensed interim consolidated financial statements and on the interim group management report based on our review.
We performed our review of the condensed interim consolidated financial statements and the interim group management report in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the reviews so that we can preclude through critical evaluation, with a certain level of assurance, that the condensed interim consolidated financial statements have not been prepared, in material aspects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, and that the interim group management report has not been prepared, in material aspects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot issue an audit certificate.
Based on our review, no matters have come to our attention that cause us to presume that the condensed interim consolidated financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.
Cologne, 4 May 2015
KPMG AG Wirtschaftsprüfungsgesellschaft
Lurweg Münstermann
Auditor Auditor
| Quarterly Report 9M/Q3 2014/15 | Thursday | 6 August 2015 | 7.30 a.m. |
|---|---|---|---|
| Announcement of sales results for the financial year 2014/15 | Monday | 19 October 2015 | 7.30 a.m. |
| Annual Report 2014/15 | Tuesday | 15 December 2015 | 8.00 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: 5 May 2015
| Investor Relations Telephone Fax |
+49 (211) 6886-1051 +49 (211) 6886-3759 [email protected] |
|---|---|
| Creditor Relations | |
| Telephone | +49 (211) 6886-1904 |
| Fax | +49 (211) 6886-1916 |
| [email protected] | |
| Corporate Communications | |
| Telephone | +49 (211) 6886-4252 |
| Fax | +49 (211) 6886-2001 |
| [email protected] | |
Visit our website at www.metrogroup.de, the primary source for publications and information about the 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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