CECONOMY AG

Quarterly Report • Jul 31, 2008

Half-Year Financial Report H1 2008

METRO Group maintains profitable growth course

• Group sales grow by 7.1% to €31.7 billion
• Sales in Germany increase by 1.6% despite store disposals at Real (Q1 2008: +0.9%; Q2 2008: +2.3%)
• International sales grow by 11.1% to €19.2 billion (Western Europe: +4.1%; Eastern Europe: +20.0%)
• EBIT before special items increases by 10.2%
• Special items at Real and Adler burden earnings
• Outlook 2008 confirmed

Q2 2008

Sales growth at Metro Cash & Carry (+5.3%) affected by Easter shift

Real Germany with successful start of marketing campaign – like-for-like sales grow by 5.0%

Media Markt and Saturn increases sales and earnings by around 14%

Galeria Kaufhof with stable earnings development

Contents

3 Cumulated Overview

• 4 Quarterly Overview
• 5 Interim Group Management Report
• 5 Financial Position and Financial Performance
• 7 Opportunities and Risks
• 7 Subsequent Events and Outlook
• 8 Metro Cash & Carry
• 9 Real
• 10 Media Markt and Saturn
• 11 Galeria Kaufhof
• 12 Store network
• 13 Interim Consolidated Financial Statements
• 13 Income Statement
• 14 Balance Sheet
• 15 Cash Flow Statement
• 16 Statement of Changes in Equity
• 17 Notes
• 17 Segment Reporting
• 21 Responsibility Statement
• 22 Review Report
• 23 Financial Calendar

Cumulated Overview

Sales growth (in %)

€ million	H1 2008	H1 2007	Change
Sales	31,692	29,584	7.1%
Germany	12,526	12,329	1.6%
International	19,166	17,255	11.1%
International share of sales	60.5%	58.3%	-
EBITDA	874	1,063	-17.8%
EBITDA before special items*	1,140	1,063	7.2%
EBIT	-130	437	-
EBIT before special items*	482	437	10.2%
EBT	-361	222	-
EPS (€)	-0.91	0.28	-
from continuing operations	-0.76	0.33	-
from continuing operations before special items*	0.37	0.33	12.1%
from discontinued operations	-0.15	-0.05	-
Capex	818	694	17.9%
Stores	2,240	2,138	4.8%
Selling space (1,000 sqm)	12,195	11,563	5.5%

* Expenses resulting from streamlining Real's store base and revaluation Adler

Quarterly Overview

Sales growth (in %)

EBITDA before special items* (€ million)

€ million	Q2 2008	Q2 2007	Change
Sales	16,064	15,024	6.9%
Germany	6,240	6,101	2.3%
International	9,824	8,923	10.1%
International share of sales	61.2%	59.4%	-
EBITDA	396	621	-36.2%
EBITDA before special items*	662	621	6.6%
EBIT	-282	303	-
EBIT before special items*	329	303	8.6%
EBT	-389	192	-
EPS (€)	-0.87	0.32	-
from continuing operations	-0.75	0.34	-
from continuing operations before special items*	0.38	0.34	11.8%
from discontinued operations	-0.12	-0.02	-
Capex	473	415	14.2%
Stores	2,240	2,138	4.8%
Selling space (1,000 sqm)	12,195	11,563	5.5%

* Expenses resulting from streamlining Real's store base and revaluation Adler

Interim Group Management Report

Financial Position and Financial Performance

Sales

In H1 2008 (01/01/2008 – 30/06/2008) METRO Group generated sales of €31.7 billion (H1 2007: €29.6 billion). This corresponds to an increase of 7.1%. Thus, the growth rate in H1 was above the growth target for the financial year 2008 of more than 6%. The currency effects amounted to -0.2 percentage points. For the first time, METRO Group's international share of sales in H1 2008 exceeded 60%. Also due to the earlier Easter business, the Q2 growth rate of 6.9% (adjusted for currency effects: 7.1%) did not quite reach the Q1 level.

In Germany, sales increased by 1.6% to €12.5 billion in H1 2008. This sales growth was achieved despite the further streamlining of Real's store base as planned. Adjusted for the disposals at Real, sales even grew by 3.0%. Thus, the positive development already seen in Q1 accelerated in Q2.

Conversely, the Adler fashion stores showed an overall weak development in a very difficult textile market environment. Against this backdrop, the Management Board of METRO Group resolved to accelerate the disposal of Adler. In this context, Adler group has been devalued on the basis of a revised plan.

International sales grew by 11.1% to €19.2 billion in H1 2008 (adjusted for currency effects: 11.5%).

Sales in Western Europe (excluding Germany) grew by 4.1% to €9.8 billion (adjusted for currency effects: +5.0%). The business development was characterised by a very heterogeneous economic situation in this region. Whilst the United Kingdom, Spain and Italy were among the challenging markets also in Q2, sales in France, The Netherlands and Sweden continued to develop very positively.

Business in Eastern Europe continued to develop dynamically. In H1 2008 sales grew by 20.0% to €8.3 billion (adjusted for currency effects: +18.8%). Also in Q2 2008, the sales development was satisfactory in an overall robust economic environment.

Sales in Asia/Africa in H1 2008 increased by 15.8% to €1.0 billion. Adjusted for currency effects, sales increased by 22.7%. Thereby, all countries showed like-for-like growth, also in Q2 2008.

Earnings

EBITDA reached €874 million in H1 2008 and included €203 million expenses resulting from the announced, and in Q2 resolved, streamlining of Real's German store base (Real: €-223 million; Other Companies / Consolidation: €+20 million). In addition, non-cash effective expenses in the segment Other Companies / Consolidation negatively affected EBITDA by €63 million due to Adler's revaluation. Adjusted for these two special items, EBITDA grew by 7.2% to €1,140 million.

METRO Group's EBIT decreased to €-130 million (H1 2007: €437 million) and included €237 million expenses resulting from the streamlining of Real's store base. Of which, €224 million are attributed to Real and €13 million to the segment Other Companies / Consolidation. In addition, EBIT in this segment was negatively affected by non-cash effective expenses resulting from Adler's revaluation to the amount of €375 million. Of which, €312 million result from the full goodwill impairment and €63 million from other expenses. Adjusted for these two special items, EBIT amounted to €482 million. This corresponds to an increase of 10.2% compared to prior year.

EBT amounted to €-361 million following €222 million in H1 2007. EPS from

continuing operations was €-0.76 after €0.33 € in H1 2007. METRO Group's tax rate increased by around 12%-points due to the Adler special item. Adjusted for the aforementioned special items, as well as the impact of Adler's revaluation on the tax rate, EPS increased by 12.1% to €0.37.

Capex

METRO Group's capex in H1 2008 amounted to €818 million following €694 million in H1 2007.

Store network

In H1 2008, 37 stores were opened – thereof 20 in Q2 2008.

Metro Cash & Carry's store network was extended by eight stores in H1 2008. Real opened four hypermarkets. Media Markt and Saturn opened 23 new consumer electronics stores. Two new stores within the segment Other were opened.

19 stores were disposed of, respectively closed. Of which, ten were hypermarkets in Germany, five stores were within the segment Other, and two consumer electronics stores each in Germany and Italy were closed in the course of optimisation and store relocation measures.

As at the end of June 2008 METRO Group operated 2,240 stores.

A detailed view on the business development of the individual sales divisions is shown on pages 8 to 11.

Discontinued operations

The sales brand Extra is disclosed as a discontinued operation. The 2007 Group financial results and the Real segment have been adjusted for the results of the Extra sales brand. The previous year's financials – with the exception of the balance sheet – have been adjusted accordingly. Further information on the discontinued operation can be found in the interim consolidated financial statements as well as in the segment report in the notes.

Funding

METRO Group's short- and medium-term funding comprises typical capital markets' issuance programmes. Among these are the "Euro Commercial Paper Programme" started in 1999, and the "Commercial Paper Programme" specifically geared to French investors. The drawdown on both programmes in the reporting period amounted to an average €2.4 billion. Furthermore, as per 30 June 2008, €1.6 billion bilateral bank credit facilities were drawn down. METRO Group redeemed a nominal volume totalling €1.0 billion within the "Debt Issuance Programme", which serves as a source of long-term financing. Furthermore, we issued €500 million promissory note loans during the reporting period. A €975 million syndicated bank loan due in November 2008 was prematurely refinanced in Q1.

Balance sheet

Total assets decreased by €2.7 billion to €31.2 billion compared to the year-end 2007. The €2.6 billion change in current assets is largely attributed to the decrease in cash and cash equivalents compared to the year-end 2007.

As at the end of H1 2008, METRO Group's balance sheet disclosed €5.8 billion equity. The equity ratio declined slightly to 18.5% compared to the prior year-end closing.

After netting cash and cash equivalents as well as bank deposits with financial debts (including finance leases), net debt totalled €8.3 billion compared with €4.3 billion as at 31 December 2007. This increase against the prior year-end closing in net debt is characteristic and resulted mainly from the reduction in trade payables of €3.8 billion. The reason behind this reduction lies in the high share Q4 sales contribute to the full year, which regularly corresponds to high trade payables at the year-end closing. Year-on-year, net debt decreased by €0.3 billion.

Cashflow

A cash outflow of €3.3 billion (H1 2007: €2.4 billion) resulted from operating activities in H1 2008.

Investing activities led to cash outflows of €0.7 billion (H1 2007: €0.4 billion). Cash flow from financing activities remained on prior year's level at €1.7 billion.

Opportunities and Risks

In H1 2008 no significant change arose from the reported opportunities and risks concerning the ongoing development of the METRO Group as described in detail in the Annual Report 2007 (pp. 68-71). There are no potentially ruinous risks for the company and presently no risks can be identified that could endanger the company's existence in the future.

Subsequent Events and Outlook

Events after the quarter-end closing

With effect from 1 July 2008 the takeover of the Extra supermarkets by the Rewe Group was completed with the store transfer and the purchase price payment.

Outlook

We plan to rigorously continue our profitable growth course. Based on assessments of future economic developments, sector trends and the development of our sales divisions, we project a positive business development of METRO Group in 2008.

We are determined to continue to advance our position as one of the leading international retail groups.

In the context of our strategy of profitable growth, METRO Group projects sales growth of more than 6% for the Group during the current financial year 2008. To this end, the Group plans to open about 40 new Metro Cash & Carry stores per year, more than 70 Media Markt and Saturn stores as well as around 15 Real hypermarkets. Unchanged, EBIT before special items is expected to increase by 6-8%. Expenses resulting from the announced streamlining of Real Germany's store network as well as expenses due to Adler's revaluation are not included therein.

METRO Group's investments are likely to exceed the prior-year's level.

	H1 2008	H1 2007		Change (in %)				Change
	€ million	€ million	total	lfl		H1 2008	H1 2007	(in %)
Sales	15,654	14,757	6.1	3.4	EBITDA (€ million)	611	585	4.6
					EBIT (€ million)	410	383	6.9
Germany	2,696	2,710	-0.5	-1.4	Capex (€ million)	329	256	28.8
Western Europe	6,017	5,982	0.6	-0.1	Stores (number)	623	586	6.3
Eastern Europe	6,004	5,247	14.4	9.3	Selling space (1,000 sqm)	4,931	4,534	8.8
Asia/Africa	938	818	14.6	6.7	Employees at closing date (full-time basis)	109,116	101,721	7.3

Metro Cash & Carry

Sales at Metro Cash & Carry grew by 6.1% to €15.7 billion in H1 2008. Adjusted for currency effects, sales increased by 7.1%. Like-for-like sales growth was 3.4% and included also positive price effects resulting from higher procurement prices. The Q2 growth rate was slightly below the Q1 rate, also due to the Easter shift.

Sales in Germany declined slightly in H1 2008. Whereby, the increase in food sales could not fully compensate the declining non-food business, seen especially in Q2.

The business development in Western Europe continued in Q2 as it had in Q1. Sales in H1 2008 increased by 0.6% to €6.0 billion (excluding currency effects: +2.0%). Like-for-like sales were on prior year's level. While sales in the United Kingdom and Portugal in particular continued to decline, France and The Netherlands showed again satisfactory growth rates.

Sales in Eastern Europe in H1 2008 rose significantly by 14.4% to €6.0 billion (excluding currency effects: +14.7%). Like-forlike sales growth amounted to 9.3%. Among others, Poland, Czech Republic, Russia and Ukraine showed above-average growth rates. Also in Q2, Metro Cash & Carry showed a positive development in an overall robust economic environment.

Sales in Asia/Africa in H1 2008 increased significantly by 14.6% to €0.9 billion (excluding currency effects: 22.1%). All Asian countries, except for Japan, showed double-digit like-for-like growth rates in local currency.

The international share of sales increased from 81.6% to 82.8%.

EBITDA in H1 2008 was €611 million following €585 million in H1 2007. EBIT developed slightly better than sales and grew by 6.9% to €410 million.

In H1 capex for international expansion and for the modernisation of the store network amounted to €329 million (H1 2007: €256 million). The store network was enlarged by eight stores. In Germany, Greece, Poland, Bulgaria, Russia, Ukraine, India and Pakistan one store each was opened.

Metro Cash & Carry operates in 29 countries 623 stores in total, thereof 123 in Germany, 257 in Western Europe, 182 in Eastern Europe and 61 in Asia/Africa.

	Q2 2008	Q2 2007		Change (in %)				Change
	€ million	€ million	total	lfl		Q2 2008	Q2 2007	(in %)
Sales	8,187	7,778	5.3	2.3	EBITDA (€ million)	399	383	4.2
					EBIT (€ million)	297	281	5.5
Germany	1,392	1,416	-1.7	-2.9	Capex (€ million)	195	166	17.5
Western Europe	3,187	3,191	-0.1	-0.8	Stores (number)	623	586	6.3
Eastern Europe	3,197	2,814	13.6	8.1	Selling space (1,000 sqm)	4,931	4,534	8.8
Asia/Africa	411	357	15.1	5.2	Employees at closing date (full-time basis)	109,116	101,721	7.3

Real

	H1 2008	H1 2007		Change (in %)				Change
	€ million	€ million	total	lfl		H1 2008	H1 20071)	(in %)
Sales	5,564	5,232	6.3	6.5	EBITDA (€ million)	-1902)	-8	-
					EBIT (€ million)	-2853)	-89	-
Germany	4,230	4,233	-0.1	4.4	Capex (€ million)	118	150	-21.7
					Stores (number)	429	438	-2.1
Eastern Europe	1,333	999	33.5	13.3	Selling space (1,000 sqm)	3,090	3,142	-1.6
					Employees at closing date (full-time basis)	56,331	54,004	4.3

1) Adjustment of previous year's amounts due to the preliminary accounting for business combinations

2) EBITDA before special items: €33 million

3) EBIT before special items: €-61 million

In H1 sales at Real increased by 6.3% to €5.6 billion (excluding currency effects: +5.5%). Like-for-like sales rose by 6.5% year-on-year. Positive price effects resulting from higher procurement prices also in Q2 contributed to the sales growth.

Sales in Germany amounted to €4.2 billion and were on prior year's level. This sales level was achieved despite 25 stores having been sold on respectively closed down in the past twelve months. Like-for-like sales in Q2 grew significantly by 5.0%. A higher average ticket as well as a further increase in customer frequency contributed to this development. The new marketing campaign sporting the slogan "Einmal hin – alles drin" (Just one store - you won't need more) was launched.

The business in Eastern Europe continued its very successful development in H1 2008. Sales grew by 33.5% to €1.3 billion (adjusted for currency effects: 28.1%). All countries showed double-digit growth rates, also in Q2 2008.

The international share of sales grew notably from 19.1% to 24.0%.

EBITDA amounted to €-190 million in H1 2008 after €-8 million in H1 2007 and included €223 million expenses incurred in Q2 resulting from the streamlining of Real's store base with the scheduled disposal of 27 stores. Real's EBIT amounted to €-285 million in H1 2008 following €-89 million in H1 2007. Adjusted for special items, EBIT was €-61 million in H1 and reflected price positioning measures as well as expenses resulting from the marketing campaign. In Q2 2008, the price measures were compensated by positive volume effects. Earnings last year were burdened by the integration of Wal-Mart Germany.

Capex in H1 2008 totalled €118 million (H1 2007: €150 million). In Germany, ten stores were closed down (Q2 2008: 5 stores) and two hypermarkets were opened. One Extra store was integrated into Real's store network. In Romania and Russia, one hypermarket each was opened.

At the end of H1 2008 the store network comprised 429 stores, thereof 342 in Germany and 87 in Eastern Europe.

	Q2 2008	Q2 2007		Change (in %)				Change
	€ million	€ million	total	lfl		Q2 2008	Q2 20071)	(in %)
Sales	2,800	2,623	6.8	6.5	EBITDA (€ million)	-1962)	-3	-
					EBIT (€ million)	-2453)	-45	-
Germany	2,113	2,098	0.7	5.0	Capex (€ million)	67	74	-8.7
					Stores (number)	429	438	-2.1
Eastern Europe	687	524	31.2	11.2	Selling space (1,000 sqm)	3,090	3,142	-1.6
					Employees at closing date (full-time basis)	56,331	54,004	4.3

1) Adjustment of previous year's amounts due to the preliminary accounting for business combinations

2) EBITDA before special items: €27 million

3) EBIT before special items: €-21 million

Media Markt and Saturn

	H1 2008	H1 2007		Change (in %)				Change
	€ million	€ million	total	lfl		H1 2008	H1 2007	(in %)
Sales	8,442	7,532	12.1	-0.8	EBITDA (€ million)	253	226	12.1
					EBIT (€ million)	137	123	11.3
Germany	3,854	3,590	7.4	1.8	Capex (€ million)	148	132	11.8
Western Europe	3,615	3,263	10.8	-5.4	Stores (number)	721	641	12.5
Eastern Europe	973	680	43.1	7.7	Selling space (1,000 sqm)	2,276	1,986	14.6
					Employees at closing date (full-time basis)	53,449	46,956	13.8

In H1 2008, sales at Media Markt and Saturn increased by 12.1% to €8.4 billion (excluding currency effects: +11.5%). Likefor-like sales declined slightly by 0.8%. Thereby, like-for-like sales in Q2 showed a stable development.

Sales in Germany increased by 7.4% to €3.9 billion in H1 2008. Especially the development in Q2 was excellent, with like-forlike sales growing by 4.6%, and also reflected successful advertising measures.

Sales growth in Western Europe in H1 2008 increased by 10.8% to €3.6 billion. Also in Q2 2008, all Media Markt and Saturn countries, with the exception of Switzerland, increased sales and market shares significantly. Particularly sales in The Netherlands, Belgium and Sweden showed a very positive development. The declining like-for-like sales development mainly resulted from the difficult economic environment in Spain and Italy.

In Eastern Europe sales in H1 2008 increased by 43.1% to €1.0 billion (excluding currency effects: +35.6%). All countries grew sales and thus contributed to this development. Especially Poland and Russia reported a very satisfactory sales development.

The international share of sales increased from 52.3% to 54.4%.

EBITDA improved from €226 million to €253 million in H1 2008. EBIT increased by 11.3% to €137 million. Thus, earnings growth developed broadly in line with sales growth also on the back of the good Q2 development.

Capex in the store network amounted to €148 million in H1 2008 following €132 million in H1 2007. The store network was enlarged by 19 stores (23 new store openings and four closures). In Italy and Germany, two consumer electronics stores each were closed down in the course of optimisation and store relocation measures. In Spain five stores and in Germany four stores were opened. In The Netherlands, Italy and Poland the store network was extended by three stores each. In both France and Turkey two stores were opened. The store network in Portugal was extended by one store.

At the end of H1 2008 the store network of Media Markt and Saturn comprised 721 stores in 15 countries, thereof 355 in Germany, 278 in Western Europe and 88 in Eastern Europe.

	Q2 2008	Q2 2007		Change (in %)				Change
	€ million	€ million	total	lfl		Q2 2008	Q2 2007	(in %)
Sales	4,082	3,588	13.8	0.0	EBITDA (€ million)	121	108	12.4
					EBIT (€ million)	62	54	14.6
Germany	1,871	1,683	11.2	4.6	Capex (€ million)	74	79	-7.0
Western Europe	1,728	1,558	10.9	-6.5	Stores (number)	721	641	12.5
Eastern Europe	482	346	39.3	7.4	Selling space (1,000 sqm)	2,276	1,986	14.6
					Employees at closing date (full-time basis)	53,449	46,956	13.8

Galeria Kaufhof

	H1 2008	H1 2007		Change (in %)				Change
	€ million	€ million	total	lfl		H1 2008	H1 2007	(in %)
Sales	1,564	1,596	-2.0	-1.9	EBITDA (€ million)	2	1	46.6
					EBIT (€ million)	-50	-52	3.5
Germany	1,413	1,447	-2.4	-2.2	Capex (€ million)	40	31	28.8
Western Europe	151	149	1.4	1.9	Stores (number)	141	142	-0.7
					Selling space (1,000 sqm)	1,485	1,484	0.1
					Employees at closing date (full-time basis)	18,578	18,419	0.9

Sales at Galeria Kaufhof in H1 2008 declined by 2.0%. The development in Q2 2008 was negatively affected by the early Easter business.

In Germany, Galeria Kaufhof was unable to avoid the effects of a declining textile market, especially in Q2. Like-for-like sales decreased by 2.2%.

Sales in Belgium in H1 grew by 1.4% to €151 million. Sales in Q2 almost reached prior year's level.

The international share of sales grew from 9.3% to 9.7%.

Earnings improved further. EBITDA at Galeria Kaufhof amounted to €2 million in H1 2008 following €1 million in H1 2007. EBIT reached €-50 million after €-52 million in H1 2007. Among the driving elements were the further execution of the trading-up strategy on the back of an improved inventory management as well as the more efficient deployment of resources.

Capex in the store network was €40 million in H1 2008 (H1 2007: €31 million). On 7 May 2008, Galeria Kaufhof opened the fifth store of its "World Class Shopping" format in the Mönckebergstraße in Hamburg. With new lifestyle, new brands and new design, the system and concepts leader in the German department store sector underlines its leading role.

At the end of H1 2008, the store network of Galeria Kaufhof comprised 141 stores, thereof 126 in Germany and 15 in Belgium, and remained unchanged to the year-end 2007.

	Q2 2008	Q2 2007		Change (in %)				Change
	€ million	€ million	total	lfl		Q2 2008	Q2 2007	(in %)
Sales	764	786	-2.9	-3.1	EBITDA (€ million)	-2	-3	20.9
					EBIT (€ million)	-29	-29	2.0
Germany	690	713	-3.1	-3.4	Capex (€ million)	24	19	29.3
Western Europe	74	74	-0.2	0.4	Stores (number)	141	142	-0.7
					Selling space (1,000 sqm)	1,485	1,484	0.1
					Employees at closing date (full-time basis)	18,578	18,419	0.9

Store network as at 30 June 2008

	Metro Cash & Carry	Real	Media Markt and Saturn	Galeria Kaufhof	Other	Total
Germany	123	342	355	126	305	1,251
Austria	12		31		19	62
Belgium	10		14	15		39
Denmark	5					5
France	89		27			116
Italy	48		89			137
Luxemburg					2	2
Netherlands	16		30			46
Portugal	10		8			18
Spain	34		53			87
Sweden			8			8
Switzerland			18			18
United Kingdom	33					33
Western Europe	257	0	278	15	21	571
Bulgaria	9					9
Croatia	6					6
Czech Republic	12					12
Greece	9		7			16
Hungary	13		20			33
Moldova	3					3
Poland	27	50	45			122
Romania	23	15				38
Russia	40	11	11			62
Serbia	5					5
Slovakia	5					5
Turkey	11	11	5			27
Ukraine	19					19
Eastern Europe	182	87	88	0	0	357
China	37					37
India	4					4
Japan	3					3
Morocco	7					7
Pakistan	2					2
Vietnam	8					8
Asia/Africa	61	0	0	0	0	61
Total	623	429	721	141	326	2,240

Interim Consolidated Financial Statements

Income Statement

€ million	H1 20081)	H1 20072)	Q2 20081)	Q2 20072)
Net sales	31,692	29,584	16,064	15,024
Cost of sales	-25,089	-23,513	-12,665	-11,857
Gross profit on sales	6,603	6,071	3,399	3,167
Other operating income	654	666	335	348
Selling expenses	-6,328	-5,602	-3,324	-2,851
General administrative expenses	-704	-654	-365	-337
Other operating expenses	-43	-44	-15	-24
Goodwill impairment Adler	-312	-	-312	-
EBIT	-130	437	-282	303
Result from associated companies	0	0	0	0
Other investment result	1	0	1	0
Interest income	89	84	44	40
Interest expenses	-321	-312	-166	-162
Other financial result	0	13	14	11
Net financial income	-231	-215	-107	-111
EBT	-361	222	-389	192
Income taxes	159	-73	168	-63
Income from continuing operations	-202	149	-221	129
Income from discontinued operations after taxes	-47	-18	-36	-7
Net profit for the period	-249	131	-257	122
allocable to minorities	48	40	25	19
allocable to shareholders of METRO AG	-297	91	-282	103
from continuing operations	-250	109	-246	110
from discontinued operations	-47	-18	-36	-7
Earnings per share (€)	-0.91	0.28	-0.87	0.32
from continuing operations	-0.76	0.33	-0.75	0.34
from discontinued operations	-0.15	-0.05	-0.12	-0.02

1) includes special items according to p. 5 and p. 9

2) Adjustment of previous year's amounts due to discontinued operations and the preliminary accounting for business combinations

Balance Sheet

Assets	30/06/2008	30/06/20071)	31/12/2007
€ million
Non-current assets	18,792	19,104	18,882
Goodwill	4,027	4,399	4,328
Other intangible assets	519	471	515
Tangible assets	12,346	12,159	12,332
Investment properties	149	133	116
Financial assets	128	121	152
Other receivables and assets	474	558	490
Deferred tax assets	1,149	1,263	949
Current assets	12,421	11,677	14,990
Inventories	6,946	6,540	7,328
Trade receivables	380	462	508
Financial assets	17	8	28
Other receivables and assets	3,199	2,730	3,076
Entitlements to income tax refunds	347	268	275
Cash & cash equivalents	1,212	1,669	3,433
Assets held for sale	320	-	342
	31,213	30,781	33,872

Equity and Liabilities	30/06/2008	30/06/20071)	31/12/2007
€ million
Equity	5,768	5,839	6,509
Capital Stock	835	835	835
Additonal paid-in capital	2,544	2,544	2,544
Reserves retained from earnings	2,131	2,243	2,876
Minority interests	258	217	254
Non-current liabilities	7,801	8,961	7,357
Provisions for pensions and similar commitments	974	988	973
Other provisions	697	541	524
Financial liabilities	5,381	6,335	5,030
Other liabilities	629	623	647
Deferred tax liabilities	120	474	183
Current liabilities	17,644	15,981	20,006
Trade payables	10,258	9,483	14,088
Provisions	508	691	576
Financial liabilities	4,679	3,897	2,708
Other liabilities	2,002	1,777	2,267
Income tax liabilities	162	133	337
Liabilities related to assets held for sale	35	-	30
	31,213	30,781	33,872

1) Adjustment of previous year's amounts due to the preliminary accounting for business combinations

Cash Flow Statement

€ million	H1 2008	H1 20071)
EBIT	-130	437
Depreciation and amortisation on tangible, intangible assets and goodwill	1,004	626
Change in provisions for pensions and other provisions	98	-37
Change in net working capital	-3,446	-2,829
Income taxes paid	-384	-254
Other	-444	-331
Cash flow from operating activities of continuing operations	-3,302	-2,388
Cash flow from operating activities of discontinued operations	17	28
Total cash flow from operating activities	-3,285	-2,360
Investments in tangible assets (excl. finance leases)	-721	-602
Other investments	-96	-47
Divestment of Extra	-	10
Disposals of fixed assets	167	271
Cash flow from investing activities of continuing operations	-650	-368
Cash flow from investing activities of discontinued operations	0	-24
Total cash flow from investing activities	-650	-392
Profit distribution
METRO AG shareholders	-386	-366
other shareholders	-47	-41
Change of financial debts	2,323	2,195
Interest paid	-311	-308
Interest received	101	112
Profit and loss transfers and other financing activities	48	103
Cash flow from financing activities of continuing operations	1,728	1,695
Cash flow from financing activities of discontinued operations	-24	-9
Total cash flow from financing activities	1,704	1,686
Total cash flows	-2,231	-1,066
Exchange rate effects on cash and cash equivalents	3	3
Overall change in cash and cash equivalents	-2,228	-1,063
Cash and cash equivalents on 1 January	3,443	2,732
Cash and cash equivalents on 30 June	1,215	1,669
less cash and cash equivalents from discontinued operations as per 30 June	3	8
Cash and cash equivalents from continuing operations as per 30 June	1,212	1,661

1) Adjustment of previous year's amounts due to the preliminary accounting for business combinations

Statement of Changes in Equity

	Capital Stock	Additional	Reserves	Total	Minorities	Total equity
		paid-in	retained from
€ million		capital	earnings
01/01/2007	835	2,544	2,454	5,833	217	6,050
Net profit for the period	-	-	91	91	40	131
Profit distribution	-	-	-366	-366	-41	-407
Remeasurement IAS 39	-	-	44	44	-	44
Currency translation	-	-	20	20	3	23
Other	-	-	0	0	-2	-2
30/06/2007	835	2,544	2,243	5,622	217	5,839
01/01/2008	835	2,544	2,876	6,255	254	6,509
Net profit for the period	-	-	-297	-297	48	-249
Profit distribution	-	-	-386	-386	-47	-433
Remeasurement IAS 39	-	-	-34	-34	-	-34
Currency translation	-	-	-28	-28	3	-25
Other	-	-	-	-	0	0
30/06/2008	835	2,544	2,131	5,510	258	5,768

Notes

Segment Reporting H1 2008

Sales Divisions

		Continuing Group Operations
	Metro				Media Markt				Other Companies/
	Cash & Carry			Real	and Saturn		Galeria Kaufhof		Consolidation		METRO Group
€ million		H1 2008 H1 20071)		H1 2008 H1 20071)	H1 2008	H1 2007	H1 2008	H1 2007		H1 2008 H1 20071)		H1 2008 H1 20071)
External sales (net)	15,654	14,757	5,564	5,232	8,442	7,532	1,564	1,596	468	465	31,692	29,584
Internal sales (net)	3	1	1	0	1	4	3	9	-8	-15	-	-
Total sales (net)	15,657	14,758	5,564	5,233	8,444	7,537	1,567	1,605	460	451	31,692	29,584
EBITDA	611	585	-190	-8	253	226	2	1	198	260	874	1,063
Depreciation/amortisation	202	201	95	81	116	103	52	53	539	188	1,004	626
EBIT	410	383	-285	-89	137	123	-50	-52	-341	73	-130	437
Investments	329	256	118	150	148	132	40	31	183	125	818	694
Segment assets	12,378	11,762	4,521	4,305	5,137	4,734	1,271	1,190	3,723	4,579	27,030	26,569
Segment liabilities	5,771	5,469	2,492	2,289	4,096	3,685	1,015	864	1,076	1,159	14,450	13,466
Employees at closing date
(full-time equivalents)	109,116	101,721	56,331	54,004	53,449	46,956	18,578	18,419	16,347	15,668	253,821	236,768
Selling space
(in 1,000 sqm)	4,931	4,534	3,090	3,142	2,276	1,986	1,485	1,484	412	417	12,195	11,563
Stores (number)	623	586	429	438	721	641	141	142	326	331	2,240	2,138

1) Adjustment of previous year's amounts due to the preliminary accounting for business combinations

Continuing Group Operations before special items at Real and Adler
	Metro					Media Markt				Other Companies/
		Cash & Carry	Real		and Saturn			Galeria Kaufhof	Consolidation		METRO Group
€ million	H1 2008	H1 2007	H1 2008	H1 2007	H1 2008	H1 2007	H1 2008	H1 2007	H1 2008	H1 2007	H1 2008	H1 2007
EBITDA	611	585	331)	-8	253	226	2	1	2413)	260	1,140	1,063
EBIT	410	383	-612)	-89	137	123	-50	-52	464)	73	482	437

1) adjusted for €-223 million expenses resulting from streamlining Real's store base

2) adjusted for €-224 million expenses resulting from streamlining Real's store base 3) adjusted for €+20 million expenses resulting from streamlining Real's store base as well as €-63 million due to Adler's revaluation

4) adjusted for €-13 million expenses resulting from streamlining Real's store base as well as €-375 million due to Adler's revaluation

Regions

		Continuing Group Operations
			Western Europe
	Germany		excl. Germany			Eastern Europe	Asia / Africa			Consolidation	METRO Group
€ million		H1 2008 H1 20071)	H1 2008	H1 2007		H1 2008 H1 20071)	H1 2008	H1 2007	H1 2008	H1 2007		H1 2008 H1 20071)
External sales (net)	12,526	12,329	9,821	9,436	8,311	6,926	1,034	893	-	-	31,692	29,584
Internal sales (net)	7	5	2	1	-	-	386	346	-395	-352	-	-
Total sales (net)	12,533	12,334	9,823	9,436	8,311	6,926	1,420	1,239	-395	-352	31,692	29,584
EBITDA	156	350	228	345	489	367	3	-1	-2	3	874	1,063
Depreciation/amortisation	585	319	247	156	156	134	17	18	-1	0	1,004	626
EBIT	-429	31	-20	189	333	233	-14	-19	-1	3	-130	437
Investments	281	300	159	114	312	245	66	36	-	-	818	694
Segment assets	12,710	13,158	9,160	8,910	7,747	6,527	996	846	-3,583	-2,871	27,030	26,569
Segment liabilities	6,649	6,375	4,482	4,281	3,381	2,847	405	383	-467	-420	14,450	13,466
Employees at closing date
(full-time equivalents)	102,275	102,068	53,507	50,807	82,202	70,442	15,837	13,451	-	-	253,821	236,768
Selling space
(in 1,000 sqm)	6,288	6,375	2,869	2,653	2,594	2,144	443	391	-	-	12,195	11,563
Stores (number)	1,251	1,266	571	516	357	303	61	53	-	-	2,240	2,138

1) Adjustment of previous year's amounts due to the preliminary accounting for business combinations

Continuing Group Operations before special items at Real and Adler
			Western Europe
	Germany		excl. Germany		Eastern Europe			Asia / Africa	Consolidation		METRO Group
€ million	H1 2008	H1 2007	H1 2008	H1 2007	H1 2008	H1 2007	H1 2008	H1 2007	H1 2008	H1 2007	H1 2008	H1 2007
EBITDA	4001)	350	2503)	345	489	367	3	-1	-2	3	1,140	1,063
EBIT	672)	31	964)	189	333	233	-14	-19	-1	3	482	437

1) adjusted for €-203 million expenses resulting from streamlining Real's store base as well as €-41 million due to Adler's revaluation

2) adjusted for €-237 million expenses resulting from streamlining Real's store base as well as €-259 million due to Adler's revaluation 3) adjusted for €-22 million expenses due to Adler's revaluation

4) adjusted for €-116 million expenses due to Adler's revaluation

Segment Reporting Q2 2008

Sales Divisions

	Continuing Group Operations
	Metro				Media Markt					Other Companies/
	Cash & Carry			Real	and Saturn		Galeria Kaufhof			Consolidation	METRO Group
€ million		Q2 2008 Q2 20071)		Q2 2008 Q2 20071)	Q2 2008	Q2 2007	Q2 2008	Q2 2007		Q2 2008 Q2 20071)		Q2 2008 Q2 20071)
External sales (net)	8,187	7,778	2,800	2,623	4,082	3,588	764	786	231	249	16,064	15,024
Internal sales (net)	2	1	0	0	0	2	1	5	-3	-8	-	-
Total sales (net)	8,189	7,779	2,801	2,623	4,081	3,590	765	791	228	241	16,064	15,024
EBITDA	399	383	-196	-3	121	108	-2	-3	74	136	396	621
Depreciation/amortisation	102	101	49	42	59	53	27	27	442	95	679	318
EBIT	297	281	-245	-45	62	54	-29	-29	-368	42	-282	303
Investments	195	166	67	74	74	79	24	19	113	77	473	415
Segment assets	12,378	11,762	4,521	4,305	5,137	4,734	1,271	1,190	3,723	4,579	27,030	26,569
Segment liabilities	5,771	5,469	2,492	2,289	4,096	3,685	1,015	864	1,076	1,159	14,450	13,466
Employees at closing date (full-time equivalents)	109,116	101,721	56,331	54,004	53,449	46,956	18,578	18,419	16,347	15,668	253,821	236,768
Selling space (in 1,000 sqm)	4,931	4,534	3,090	3,142	2,276	1,986	1,485	1,484	412	417	12,195	11,563
Stores (number)	623	586	429	438	721	641	141	142	326	331	2,240	2,138

1) Adjustment of previous year's amounts due to the preliminary accounting for business combinations

	Continuing Group Operations before special items at Real and Adler
	Metro				Media Markt				Other Companies/
	Cash & Carry		Real		and Saturn		Galeria Kaufhof		Consolidation		METRO Group
€ million	Q2 2008	Q2 2007	Q2 2008	Q2 2007	Q2 2008	Q2 2007	Q2 2008	Q2 2007	Q2 2008	Q2 2007	Q2 2008	Q2 2007
EBITDA	399	383	271)	-3	121	108	-2	-3	1173)	136	662	621
EBIT	297	281	-212)	-45	62	54	-29	-29	204)	42	329	303

1) adjusted for €-223 million expenses resulting from streamlining Real's store base

2) adjusted for €-224 million expenses resulting from streamlining Real's store base

3) adjusted for €+20 million expenses resulting from streamlining Real's store base as well as €-63 million due to Adler's revaluation 4) adjusted for €-13 million expenses resulting from streamlining Real's store base as well as €-375 million due to Adler's revaluation

Regions

							Continuing Group Operations
				Western Europe
	Germany		excl. Germany			Eastern Europe	Asia / Africa		Consolidation		METRO Group
€ million		Q2 2008 Q2 20071)	Q2 2008	Q2 2007		Q2 2008 Q2 20071)	Q2 2008	Q2 2007	Q2 2008	Q2 2007		Q2 2008 Q2 20071)
External sales (net)	6,240	6,101	5,011	4,848	4,367	3,684	447	392	-	-	16,064	15,024
Internal sales (net)	4	3	1	0	-	-	158	159	-164	-163	-	-
Total sales (net)	6,244	6,104	5,012	4,848	4,367	3,684	605	551	-164	-163	16,064	15,024
EBITDA	-22	197	125	194	300	233	-3	-6	-4	3	396	621
Depreciation/amortisation	421	161	171	81	79	68	9	9	-1	-1	679	318
EBIT	-444	37	-46	113	221	165	-11	-16	-3	4	-282	303
Investments	168	163	82	74	197	159	27	19	-	-	473	415
Segment assets	12,710	13,158	9,160	8,910	7,747	6,527	996	846	-3,583	-2,871	27,030	26,569
Segment liabilities	6,649	6,375	4,482	4,281	3,381	2,847	405	383	-467	-420	14,450	13,466
Employees at closing date (full-time equivalents)	102,275	102,068	53,507	50,807	82,202	70,442	15,837	13,451	-	-	253,821	236,768
Selling space (in 1,000 sqm)	6,288	6,375	2,869	2,653	2,594	2,144	443	391	-	-	12,195	11,563
Stores (number)	1,251	1,266	571	516	357	303	61	53	-	-	2,240	2,138

1) Adjustment of previous year's amounts due to the preliminary accounting for business combinations

Continuing Group Operations before special items at Real and Adler
			Western Europe
	Germany		excl. Germany			Eastern Europe		Asia / Africa	Consolidation		METRO Group
€ million	Q2 2008	Q2 2007	Q2 2008	Q2 2007	Q2 2008	Q2 2007	Q2 2008	Q2 2007	Q2 2008	Q2 2007	Q2 2008	Q2 2007
EBITDA	2221)	197	1483)	194	300	233	-3	-6	-4	3	662	621
EBIT	532)	37	704)	113	221	165	-11	-16	-3	4	329	303

1) adjusted for €-203 million expenses resulting from streamlining Real's store base as well as €-41 million due to Adler's revaluation

2) adjusted for €-237 million expenses resulting from streamlining Real's store base as well as €-259 million due to Adler's revaluation

3) adjusted for €-22 million expenses due to Adler's revaluation 4) adjusted for €-116 million expenses due to Adler's revaluation

Information on discontinued operations H1 2008

	Operations	Discontinued Group
€ million	H1 2008	H1 2007
External sales (net)	731	776
Internal sales (net)	-	-
Net sales	731	776
EBITDA	-50	-8
Depreciation/amortization	-	7
EBIT	-50	-15
Investments	2	17
Segment assets	288	301
Segment liabilities	26	27
Employees at closing date
(full-time basis)	5,784	6,545
Selling space
(in 1,000 sqm)	412	427
Stores (number)	245	252

Information on discontinued operations Q2 2008

	Discontinued Group Operations
€ million	Q2 2008	Q2 2007
External sales (net)	364	393
Internal sales (net)	-	-
Net sales	364	393
EBITDA	-37	-2
Depreciation/amortization	-	3
EBIT	-37	-6
Investments	0	9
Segment assets	288	301
Segment liabilities	26	27
Employees at closing date
(full-time basis)	5,784	6,545
Selling space
(in 1,000 sqm)	412	427
Stores (number)	245	252

Notes to Group Accounting Principles and Methods

The interim consolidated financial statements as at 30 June 2008 have been prepared in accordance with International Financial Reporting Standard (IFRS) IAS 34 "Interim Financial Reporting". They do not include all information required for the full annual consolidated financial statements at the end of the full year in accordance with IFRS.

In preparation of the interim consolidated financial statements, the same recognition and valuation methods were applied as in the last preceding annual consolidated financial statements as at 31 December 2007. Details on applied recognition and valuation methods are provided in the notes of the annual consolidated financial statements as at 31 December 2007.

During the year, sales-relative and cyclical positions are accounted for pro-rata based on corporate planning, where material. From 2008 on, commissions in relation to customer transactions have no longer been disclosed as Other Operating Income. They are now included in net sales. The restatement is not profit-relevant and the prior year has been adjusted accordingly. The prior year adjustment in H1 amounts to €48 million for the Group (Q2 2007: €24 million), of which €44 million is attributed to Media Markt and Saturn (Q2 2007: €23 million).

The current interim consolidated financial statements apply the accounting standards and interpretations newly introduced by the IASB which were adopted by the Council of the European Commission (cf. METRO Group's Annual Report 2007, p. 118). The application of these accounting standards had no impact on METRO Group's financial position and financial performance.

To provide a better overview in the tables, decimal places have been partly omitted. Therefore rounding differences can occur.

Notes to related parties

Up until 30 June 2008 companies that are included in the circle of related companies rendered goods/services to the amount of €62 million to METRO Group companies. These consist primarily of leasing services. Up until 30 June 2008 METRO Group companies rendered goods/services to the amount of €1 million to companies that are included in the circle of related companies. All business relations with related companies are based on contractual agreements and conform to market conditions. In the reporting period, METRO Group had no business relations with related natural persons.

Responsibility Statement

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 months of the financial year.

Düsseldorf, 30 July 2008

Board of Management

Dr. Cordes Mierdorf Muller Saveuse Unger

Review Report

To METRO AG, Düsseldorf

We have reviewed the condensed interim consolidated financial statements of the METRO AG -comprising the balance sheet, the income statement, 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 January 1 to June 30, 2008 that are part of the semi annual financial report according to § 37 w 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) and additionally in accordance with the International Standard on Review Engagements, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" (ISRE 2410). Those standards require that we plan and perform the review 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 auditor's report.

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, July, 30 2008

KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprüfungsgesellschaft

Siemes Dr. Böttcher Wirtschaftsprüfer (Auditor) Wirtschaftsprüfer (Auditor)

METRO Group

Schlueterstrasse 1 40235 Duesseldorf Germany

PO Box 230361 40089 Duesseldorf Germany

Investor Relations

Investor Hotline:	+49 1802 - 725 750
Phone:	+49 211 - 6886 - 1936
	+49 211 - 6886 - 1051
Fax:	+49 211 - 6886 - 3759
E-mail	investorrelations@metro.de

Creditor Relations

Phone:	+49 211 - 6886 - 1904
Fax:	+49 211 - 6886 - 1916
E-mail:	creditorrelations@metro.de

Corporate Communications

Phone:	+49 211 - 6886 - 2947
Fax:	+49 211 - 6886 - 2001
E-mail:	presse@metro.de

Visit our website at www.metrogroup.de, the primary source for publications and information about the METRO Group. With the METRO Group News Abo you can subscribe to regular news and official publications of the company online.

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

Disclaimer

This Half-Year Financial Report contains certain statements that are neither reported financial results nor other historical information. These forward-looking statements are subject to risk and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. 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 synergies and the actions of government regulators. Readers are cautioned not to place undue reliance on the-se forward-looking statements, which apply only as of the date of this presentation. METRO Group does not undertake any obligation to publicly release any revisions to these forwardlooking statements to reflect events or circumstances after the date of these materials.

Financial Calendar

Thursday, 30 October 2008, 7.15 am

Quarterly Financial Report Q3 2008

All time specifications are German times.