CECONOMY AG

Quarterly Report • Aug 1, 2007

Half-Year Financial Report H1 2007

METRO Group with double-digit sales growth

• Group sales grow by 10.9% to €30.3 billion
• Sales in Germany increase by 7.6% (organic growth: +0.3%)
• International sales continue to grow very dynamically by 13.5% to €17.2 billion: Western Europe: +6.1%; Eastern Europe: +23.5%
• EBIT affected as expected by integrations at Real (€419 million after €459 million last year) – in Q2 primarily by conversions to Real
• Outlook 2007 confirmed:
• Sales growth of 8 9%
  • EBIT increase of 6 8%

Sales at Metro Cash & Carry grow by 5.2% despite high prior year level

Conversion of Wal-Mart Germany and Géant in Poland to Real completed according to plan

Media Markt and Saturn increases sales stronger than in prior year by 14.3%

Galeria Kaufhof with further earnings improvement

Contents

3 Overview

4 Interim Group Management Report

• 4 Financial Position and Financial Performance
• 6 Opportunities and Risks
• 6 Subsequent Events and Outlook
• 7 Metro Cash & Carry
• 8 Real
• 9 Media Markt and Saturn
• 10 Galeria Kaufhof
• 11 Interim Consolidated Financial Statements
• 11 Income Statement
• 12 Balance Sheet
• 13 Cash Flow Statement
• 14 Statement of Changes in Equity
• 15 Notes
• 15 Segment Reporting
• 18 Responsibility Statement
• 19 Review Report
• 20 Financial Calendar

1,626

3,098*

EBIT (€m)

EPS from continuing operations (€)

* before special items

€ million	H1 2007	H1 2006	Change in %	Q2 2007	Q2 2006	Change in %
Sales	30,312	27,341	10.9%	15,393	14,033	9.7%
Germany	13,081	12,158	7.6%	6,481	6,140	5.6%
International	17,232	15,184	13.5%	8,912	7,894	12.9%
International share of sales	56.8%	55.5%	-	57.9%	56.2%	-
EBITDA	1,052	1,052	0.0%	618	629	-1.8%
EBIT	419	459	-8.8%	296	321	-7.9%
EBT	202	235	-14.2%	184	201	-8.6%
EPS (€)	0.29	0.82	-64.5%	0.32	0.80	-60.0%
from continuing operations	0.29	0.38	-24.1%	0.32	0.36	-12.0%
from discontinued operations	-	0.44	-	-	0.44	-
Capex	711	681	4.3%	423	346	22.2%
Stores	2,390	2,203	8.5%	2,390	2,203	8.5%
Selling space (1,000 sqm)	11,990	10,687	12.2%	11,990	10,687	12.2%

Overview

Interim Group Management Report

Financial Position and Financial Performance

In the first half of 2007 (1 January - 30 June 2007) METRO Group generated sales of €30.3 billion (H1 2006: €27.3 billion). This corresponds to an increase of 10.9%. Excluding the acquisitions of Wal-Mart Germany and Géant in Poland sales grew by 6.7%. Currency effects amounted to 0.1 percentage points. The international share of sales increased from 55.5% in H1 2006 to 56.8%.

Sales in Germany rose year-on-year by 7.6% to €13.1 billion. The development of the individual quarters was characterised by the earlier Easter business. Although sales in the first half of the year were dampened as expected by the VAT increase, adjusted for the acquisition of Wal-Mart Germany they grew by 0.3%.

The positive development of our international business continued. Sales grew by 13.5% to €17.2 billion. Without the acquisition of Géant in Poland, international sales increased by 11.8%. Currency effects in Q1 2007 reduced sales in Euro; in Q2 these effects reversed. All in all, a positive effect to the amount of 0.1 percentage points resulted in H1 2007.

Sales in Western Europe (excluding Germany) grew significantly by 6.1% to €9.4 billion, especially due to the continuous positive business development of Media Markt and Saturn.

The business in Eastern Europe showed further above-average growth rates with sales growth increasing by 23.5% to €6.9 billion (adjusted for currency effects: +22.5%). Without the acquisition of Géant in Poland sales growth was 19.0%. The sales development at Metro Cash & Carry in Russia and Romania as well as Media Markt in Poland and Russia was particularly good.

Also in Asia/Africa sales increased significantly by 26.5% to €0.9 billion. Excluding currency effects, sales growth was even higher at 32.6%. All countries in Asia contributed to this good business performance with double-digit sales growth rates.

In H1 2007 EBITDA of €1,052 million reached prior year's level. METRO Group's EBIT in the same period was €419 million (H1 2006: €459 million) and included expenses resulting from the integration of Real's acquisitions executed in 2006. The segment Other includes earnings to the amount of €11 million (H1 2006: €29 million) resulting from active real estate portfolio management. Adjusted for integration expenses at Real as well as for the change in earnings resulting from the active real estate portfolio management, EBIT was above prior year's level.

EBT amounted to €202 million after €235 million in H1 2006. EPS from continuing operations was €0.29 after €0.38 in H1 2006.

METRO Group's capex in H1 2007 amounted to €711 million after €681 million in H1 2006.

The store network was further extended by 31 new store openings, thereof 16 in Q2 2007. However, 20 stores were disposed of respectively closed, thereof 16 at Real in Germany, three at Media Markt and Saturn in France and one at Galeria Kaufhof. Metro Cash & Carry opened two new stores in H1 2007. Real opened four hypermarkets and one Extra supermarket. The store network of Media Markt and Saturn expanded by 23 new store openings – including the second largest Saturn in Europe with around 10,000 sqm sales area in Berlin. One Galeria Kaufhof was opened and another was closed. At the end of H1 2007 the METRO Group operated 2,390 stores.

A detailed view on the business development of the individual sales divisions is shown on pages 7 to 10.

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 H1 2007 amounted on average to €1,549 million. Furthermore, as per halfyear-end closing, €2,362 million bilateral bank credit facilities were drawn down.

On 15 May 2007, METRO Group issued a benchmark Eurobond within its "Debt Issuance Programme". The five year bond has a volume of €500 million. The proceeds from the issue were used to refinance existing debt and did not increase net debt.

Balance Sheet

Total assets decreased by €1.4 billion to €30.7 billion compared to year-end closing 2006. The €1.5 billion change in current assets is largely attributed to the decrease in cash and cash equivalents compared to year-end closing 2006.

At the end of Q2 2007, METRO Group's balance sheet reported equity of €5.8 billion, which was below the year-end 2006 amount due to the dividend payment in Q2. The equity ratio increased slightly to 19.0%.

After netting cash and cash equivalents with financial debts, including finance leases, net debt totalled €8.6 billion compared with €5.3 billion as at 31 December 2006. This increase in net debt is characteristic for the first half year and resulted mainly from the reduction in trade payables of €2.9 billion. The reason behind this reduction lies in the high share Q4 sales contribute to the full year, which consistently corresponds to high trade payables. Net debt rose by €0.4 billion year-on-year.

Cashflow

Cash outflow of €2.4 billion (H1 2006: €1.9 billion) resulted from current operating activities in H1 2007.

Investing activities led to cash outflows of €0.4 billion. Last year, the divestment of Praktiker resulted in a cash inflow of €0.1 billion. Cash flow from financing activities showed inflows of €1.7 billion (H1 2006: €0.9 billion).

Opportunities and Risks

In H1 2007 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 2006 (p.63-66). 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

The resolved reduction of the income tax rates, as part of the German corporate tax reform, necessitates a revaluation of the deferred tax assets and liabilities. Presumably this will lead to an extraordinary, additional, non-cash effective tax expense in the range of approx. €160 - 180 million for METRO Group in Q3 2007.

Outlook

We shall consequently continue our profitable growth path. On the basis of economic forecasts, the sector's business situation and developments in the sales divisions, we expect a positive business development in 2007 for the METRO Group.

Over the medium-term we expect the METRO's profitable growth strategy to lead to sales growth of around 6% and an even higher increase in EBIT growth before special items. For fiscal year 2007 we project sales growth of 8% to 9% including the acquisitions of the Wal-Mart Germany group and the Géant business in Poland. We expect an EBIT increase of 6% to 8% based on EBIT of €1,910 million. The basis is the EBIT adjusted for effects resulting from the repositioning of Real including the acquisitions of Wal-Mart Germany and Géant in Poland.

In 2007 our investments in the current store network, including the conversion of the Wal-Mart stores to the Real brand, and in our organic expansion are expected to total about €2.5 billion.

We are working to further extend our position as a leading international retailer also in the future. Thereby, we will continue to assume our social responsibility.

	H1 2007	H1 2006		Change (in %)				Change
	€ million	€ million	total	lfl		H1 2007	H1 2006	(in %)
Sales	14,757	14,034	5.2	1.7	EBITDA (€ million)	585	536	9.1
					EBIT (€ million)	383	340	12.8
Germany	2,710	2,740	-1.1	-2.7	Capex (€ million)	256	256	-0.3
Western Europe	5,982	5,958	0.4	0.0	Stores (number)	586	554	5.8
Eastern Europe	5,247	4,633	13.2	6.2	Selling space (1,000 sqm)	4,534	4,289	5.7
Asia/Africa	818	702	16.5	4.0	Employees at closing date (full-time basis)	101,721	96,027	5.9

Metro Cash & Carry

Sales of Metro Cash & Carry grew by 5.2% to €14.8 billion compared to the high prior year level in H1 2006. Adjusted for currency effects, sales increased by 5.0%. Thereby, the good development in the first quarter continued in Q2 2007.

In Germany sales amounted to €2.7 billion and were slightly below prior year's level, especially with regard to the difficult environment for restaurant owners in the wake of the VAT increase. Furthermore, business in Q2 was particularly affected by the shift of the Easter business.

Sales in Western Europe increased by 0.4% to €6.0 billion (excluding currency effects: +0.2%). Like-for-like sales reached prior year's H1 level. While sales in United Kingdom declined, business in France and Spain continued to develop very well.

In Eastern Europe, sales rose significantly by 13.2% to €5.2 billion (excluding currency effects: +12.3%). Like-for-like sales increased by 6.2%. Especially the highrevenue countries, Russia, Romania and Ukraine, continued to show above-average growth rates.

Sales in Asia/Africa increased significantly by 16.5% to €0.8 billion (excluding currency effects: +22.2%). All Asian countries showed double-digit growth rates.

The international share of sales increased from 80.5% to 81.6%.

Earnings in Q2 2007 also followed the good development seen already in Q1 2007. In H1 2007 EBITDA amounted to €585 million after €536 million in H1 2006. On the back of a good like-for-like sales development, EBIT improved from €340 million to €383 million; growing ahead of sales.

In H1 2007 capex for international expansion as well as for the modernisation of the store network amounted to €256 million as in prior year. The store network was enlarged in H1 2007 by two stores: one opened in China and the other in Russia. Metro Cash & Carry is the most international sales division of METRO Group with a presence in 28 countries and operates a total of 586 stores, thereof 120 in Germany, 251 in Western Europe, 162 in Eastern Europe and 53 in Asia/Africa.

	Q2 2007	Q2 2006		Change (in %)				Change
	€ million	€ million	total	lfl		Q2 2007	Q2 2006	(in %)
Sales	7,778	7,396	5.2	1.8	EBITDA (€ million)	383	348	10.1
					EBIT (€ million)	281	250	12.7
Germany	1,416	1,441	-1.8	-3.4	Capex (€ million)	166	128	29.6
Western Europe	3,191	3,184	0.2	-0.1	Stores (number)	586	554	5.8
Eastern Europe	2,814	2,466	14.1	6.9	Selling space (1,000 sqm)	4,534	4,289	5.7
Asia/Africa	357	304	17.6	4.9	Employees at closing date (full-time basis)	101,721	96,027	5.9

Real

	H1 2007	H1 2006		Change (in %)				Change
	€ million	€ million	total	lfl		H1 2007	H1 2006	(in %)
Sales	6,009	4,737	26.9	-0.6	EBITDA (€ million)	-20	33	-
					EBIT (€ million)	-108	-34	-
Germany	5,010	4,195	19.4	-0.9	Capex (€ million)	167	64	-
					Stores (number)	690	591	16.8
Eastern Europe	999	542	84.4	1.6	Selling space (1,000 sqm)	3,569	2,693	32.5
					Employees at closing date (full-time basis)	60,549	43,501	39.2

In H1 2007 sales at Real increased by 26.9% to €6.0 billion (excluding currency effects: +26.9%). The acquisitions of Wal-Mart Germany and Géant in Poland, which took place in 2006, contributed significantly with €1.1 billion to this development. Adjusted for these acquisitions sales growth amounted to 2.8%. Like-for-like sales in H1 decreased slightly by 0.6% year-on-year.

In Q2 2007 like-for-like sales in Germany at Real declined compared to a good prior year basis. Numerous store conversions lead to temporary closures and operational disruptions. The comprehensive conversion programme of the acquired Wal-Mart hypermarkets was successfully completed within the set time frame. All in all, 69 former Wal-Mart stores continue to operate. In addition, the conversion of the heritage store network to the concept format progressed further. As of 30 June 2007 25 concept stores were converted.

Business in Eastern Europe continued successfully in H1 2007. All Géant stores were converted to Real by the end of March. Total sales grew by 84.4% to €1.0 billion. Excluding Géant in Poland sales increased by 37.8%. The currency effect amounted to -0.5 percentage points.

The international share of sales grew from 11.4% to 16.6%.

In H1 2007 EBITDA amounted to €-20 million after €33 million in H1 2006. EBIT was €-108 million (H1 2006: €-34 million) and included burdens, which will discontinue in future. These expenses entail running costs for the headquarters and logistics structures to be closed, as well as the negative contributions to operating income from 16 Wal-Mart hypermarkets to be disposed of. Moreover, earnings included expenses for the (in Q2 completed) conversion of the former Wal-Mart hypermarkets to the Real concept. All in all, expenses of around €30 million resulted in Q2 2007. In addition, start-up losses for the accelerated international expansion in Eastern Europe increased.

In H1 2007 capex amounted to €167 million (H1 2006: €64 million). In Germany nine Wal-Mart stores and seven Extra supermarkets were closed. Three stores were opened in Russia, one hypermarket in Romania and one Extra supermarket in Germany. At the end of H1 2007 the store network comprised 690 stores, thereof 615 in Germany (363 hypermarkets) and 75 in Eastern Europe.

	Q2 2007	Q2 2006		Change (in %)				Change
	€ million	€ million	total	lfl		Q2 2007	Q2 2006	(in %)
Sales	3,016	2,419	24.7	-2.2	EBITDA (€ million)	-7	39	-
					EBIT (€ million)	-52	5	-
Germany	2,492	2,138	16.6	-2.9	Capex (€ million)	82	35	-
					Stores (number)	690	591	16.8
Eastern Europe	524	281	86.7	2.4	Selling space (1,000 sqm)	3,569	2,693	32.5
					Employees at closing date (full-time basis)	60,549	43,501	39.2

	H1 2007	H1 2006		Change (in %)				Change
	€ million	€ million	total	lfl		H1 2007	H1 2006	(in %)
Sales	7,489	6,554	14.3	4.4	EBITDA (€ million)	226	207	9.0
					EBIT (€ million)	123	115	6.5
Germany	3,569	3,398	5.1	1.3	Capex (€ million)	132	133	-0.7
Western Europe	3,242	2,724	19.0	6.2	Stores (number)	641	583	9.9
Eastern Europe	677	432	56.8	18.6	Selling space (1,000 sqm)	1,986	1,784	11.3
					Employees at closing date (full-time basis)	46,956	40,638	15.5

Media Markt and Saturn

In H1 2007 sales at Media Markt and Saturn increased by 14.3% to €7.5 billion (excluding currency effects: +14.3%). Likefor-like sales also grew significantly by 4.4%. Last year's tough comparative Q2 (also due to the World Cup) was even surpassed by an increase of 11.3%.

In Germany, the market position was further improved. Regardless of the VAT increase at the beginning of 2007, sales growth reached 5.1% (like-for-like: +1.3%).

Sales in Western Europe grew significantly by 19.0% to €3.2 billion (excluding currency effects: +19.5%). Besides France, all countries generated like-for-like sales growth. Especially Spain, Belgium and the Netherlands continued their dynamic business development.

In Eastern Europe sales increased by 56.8% to €0.7 billion (excluding currency effects: +54.1%). Especially in Poland, the country with the highest revenue, sales grew, also on a like-for-like basis, significantly. The business of Media Markt in Russia continued its satisfactory development.

In H1 2007 the new countries Russia and Sweden already generated total sales of around €110 million.

The international share of sales increased significantly from 48.2% to 52.3%.

In H1 2007 EBITDA improved from €207 million to €226 million. EBIT grew from €115 million to €123 million despite significantly higher start-up losses in the new countries, Russia and Sweden.

In H1 2007 capex in the store network amounted to €132 million after €133 million in H1 2006. The store network was enlarged by 23 stores. In the course of network optimising, three stores in France were disposed of. In Germany and Poland five stores were opened respectively. Spain and Italy each opened three stores. The store network in the Netherlands, Russia and Hungary each was extended by two new stores and Switzerland by one store. In the "Europacenter" in Berlin, the new Saturn flagship store opened with around 10,000 sqm sales area on six floors. At the end of H1 2007 the store network of Media Markt and Saturn comprised 641 stores in 14 countries, thereof 345 in Germany, 230 in Western Europe and 66 in Eastern Europe.

	Q2 2007	Q2 2006		Change (in %)				Change
	€ million	€ million	total	lfl		Q2 2007	Q2 2006	(in %)
Sales	3,565	3,202	11.3	2.3	EBITDA (€ million)	108	98	9.8
					EBIT (€ million)	54	51	5.4
Germany	1,672	1,640	2.0	-1.0	Capex (€ million)	79	75	5.5
Western Europe	1,549	1,347	15.0	3.4	Stores (number)	641	583	9.9
Eastern Europe	344	216	59.8	19.9	Selling space (1,000 sqm)	1,986	1,784	11.3
					Employees at closing date (full-time basis)	46,956	40,638	15.5

Galeria Kaufhof

	H1 2007	H1 2006		Change (in %)				Change
	€ million	€ million	total	lfl		H1 2007	H1 2006	(in %)
Sales	1,596	1,616	-1.2	-2.4	EBITDA (€ million)	1	-10	-
					EBIT (€ million)	-52	-65	20.3
Germany	1,447	1,478	-2.1	-3.5	Capex (€ million)	31	84	-63.1
Western Europe	149	138	8.3	8.5	Stores (number)	142	142	-
					Selling space (1,000 sqm)	1,484	1,485	-0.1
					Employees at closing date (full-time basis)	18,419	18,957	-2.8

Despite the burden of the VAT increase, sales at Galeria Kaufhof in H1 2007 broadly maintained prior year's level of €1.6 billion. Compared to a very good Q2 2006, Q2 2007 showed a declining sales development.

In Germany, sales in the low-margin hardline assortment declined. However, apparel sales improved. In H1 2007, gross sales in total were on prior year's level.

In Belgium, the very good development continued and sales increased by 8.3% to €149 million.

The international share of sales grew from 8.5% in H1 2006 to 9.3%.

In H1 2007 EBITDA of Galeria Kaufhof amounted to €1 million after €-10 million in H1 2006. With a higher gross margin and continued high cost orientation, EBIT improved from €-65 million to €-52 million. Thereby, Q2 2007 again showed a significant earnings improvement from €-39 million to €-29 million.

In H1 2007 capex in the store network was €31 million (H1 2006: €84 million). By the end of the first quarter the department store network was extended by one store in Berlin and one small-sized store was closed. Therewith, the store network comprised 142 stores, thereof 127 in Germany and 15 in Belgium.

	Q2 2007	Q2 2006		Change (in %)				Change
	€ million	€ million	total	lfl		Q2 2007	Q2 2006	(in %)
Sales	786	802	-1.9	-2.0	EBITDA (€ million)	-3	-11	77.5
					EBIT (€ million)	-29	-39	25.3
Germany	713	735	-3.0	-3.2	Capex (€ million)	19	33	-43.3
Western Europe	74	67	10.7	10.8	Stores (number)	142	142	-
					Selling space (1,000 sqm)	1,484	1,485	-0.1
					Employees at closing date (full-time basis)	18,419	18,957	-2.8

Interim Consolidated Financial Statements

Income Statement

€ million	H1 2007	H1 2006	Q2 2007	Q2 2006
Net sales	30,312	27,341	15,393	14,033
Cost of sales	-24,116	-21,838	-12,164	-11,175
Gross profit on sales	6,196	5,503	3,229	2,858
Other operating income	745	742	390	419
Selling expenses	-5,819	-5,186	-2,959	-2,645
General administrative expenses	-659	-565	-340	-293
Other operating expenses	-44	-35	-24	-18
EBIT	419	459	296	321
Result from associated companies	0	0	0	0
Other investment result	0	1	0	1
Interest income	85	70	40	35
Interest expenses	-315	-293	-162	-150
Other financial result	13	-2	10	-6
Net financial income	-217	-224	-112	-120
EBT	202	235	184	201
Income taxes	-67	-77	-61	-66
Income from continuing operations	135	158	123	135
Income from discontinued operations after taxes	-	143	-	143
Net profit for the period	135	301	123	278
allocable to minorities	40	32	19	16
from continuing operations	40	32	19	16
from discontinued operations	-	-	-	-
allocable to stockholders of METRO AG	95	269	104	262
from continuing operations	95	126	104	119
from discontinued operations	-	143	-	143
Earnings per share (€)	0.29	0.82	0.32	0.80
from continuing operations	0.29	0.38	0.32	0.36
from discontinued operations	-	0.44	-	0.44

Balance Sheet

Assets	30.06.2007	30.06.2006	31.12.2006
€ million
Non-current assets	19,067	17,338	18,978
Goodwill	4,382	4,159	4,379
Other intangible assets	476	432	478
Tangible assets	12,151	10,793	12,087
Investment properties	133	211	136
Financial assets	121	131	139
Other receivables and assets	558	486	535
Deferred tax assets	1,246	1,126	1,224
Current assets	11,671	9,779	13,170
Inventories	6,540	6,089	6,640
Trade receivables	462	405	481
Financial assets	8	5	21
Other receivables and assets	2,723	2,091	2,852
Entitlements to income tax refunds	268	264	279
Cash & cash equivalents	1,670	916	2,732
Non-current assets held for sale	-	9	165
	30,738	27,117	32,148

Equity and Liabilities	30.06.2007	30.06.2006	31.12.2006
€ million
Equity	5,839	5,168	6,047
Capital Stock	835	835	835
Additonal paid-in capital	2,544	2,551	2,544
Reserves retained from earnings	2,243	1,594	2,451
Minority interests	217	188	217
Non-current liabilities	8,930	8,435	8,869
Provisions for pensions and similar commitments	988	991	1,023
Other provisions	537	436	506
Financial liabilities	6,335	6,105	6,279
Other liabilities	598	421	599
Deferred tax liabilities	472	482	462
Current liabilities	15,969	13,514	17,232
Trade payables	9,483	8,263	12,416
Provisions	695	277	719
Financial liabilities	3,889	3,008	1,740
Other liabilities	1,776	1,807	2,029
Income tax liabilities	126	159	304
Liabilities related to non-current assets held for sale	-	-	24
	30,738	27,117	32,148

Cash Flow Statement

€ million	H1 2007	H1 2006
EBIT	419	459
Depreciation and amortisation on tangible and intangible assets	633	592
Change in provisions for pensions and other provisions	-41	-8
Change in net working capital	-2,833	-2,517
Income taxes paid	-254	-220
Other	-283	-177
Cash flow from operating activities of continuing operations	-2,359	-1,871
Cash flow from operating activities of discontinued operations	0	0
Total cash flow from operating activities	-2,359	-1,871
Investments in tangible assets (excl. finance leases)	-615	-548
Other investments	-51	-74
Divestment of Praktiker	0	484
Disposals of fixed assets	274	280
Cash flow from investing activities of continuing operations	-392	142
Cash flow from investing activities of discontinued operations	0	0
Total cash flow from investing activities	-392	142
Profit distribution
METRO AG stockholders	-366	-334
other stockholders	-41	-50
Change of financial debts	2,195	1,407
Interest paid	-311	-286
Interest received	112	101
Profit and loss transfers and other financing activities	97	49
Cash flow from financing activities of continuing operations	1,686	887
Cash flow from financing activities of discontinued operations	0	0
Total cash flow from financing activities	1,686	887
Total cash flows	-1,065	-842
Exchange rate effects on cash and cash equivalents	3	-9
Overall change in cash and cash equivalents	-1,062	-851
Cash and cash equivalents on January 1	2,732	1,767
Cash and cash equivalents on June 30	1,670	916
less cash and cash equivalents from discontinued operations as per June 30	0	0
Cash and cash equivalents from continuing operations as per June 30	1,670	916

Statement of Changes in Equity

€ million	Capital Stock	Capital reserve	Reserves retained from earnings	Total	Minorities	Total equity
01.01.2006	835	2,551	1,721	5,107	206	5,313
Net profit for the period	-	-	269	269	32	301
Profit distribution	-	-	-334	-334	-50	-384
Remeasurement IAS 39	-	-	-9	-9	-	-9
Currency translation	-	-	-53	-53	0	-53
Other	-	-	-	-	0	0
30.06.2006	835	2,551	1,594	4,980	188	5,168
01.01.2007	835	2,544	2,451	5,830	217	6,047
Net profit for the period	-	-	95	95	40	135
Profit distribution	-	-	-366	-366	-41	-407
Remeasurement IAS 39	-	-	44	44	-	44
Currency translation	-	-	19	19	3	22
Other	-	-	0	0	-2	-2
30.06.2007	835	2,544	2,243	5,622	217	5,839

Notes

Segment Reporting H1 2007

Sales divisions

	Metro				Media Markt					Other/
	Cash & Carry			Real	and Saturn		Galeria Kaufhof			Consolidation	METRO Group
€ million		H1 2007 H1 2006 H1 2007 H1 2006 H1 2007 H1 2006 H1 2007 H1 2006 H1 2007								H1 2006	H1 2007	H1 2006
External sales (net)	14,757	14,034	6,009	4,737	7,489	6,554	1,596	1,616	461	400	30,312	27,341
Internal sales (net)	1	45	0	1	4	4	9	6	-15	-55	-	-
Total sales (net)	14,758	14,080	6,009	4,738	7,493	6,557	1,605	1,622	446	345	30,312	27,341
EBITDA	585	536	-20	33	226	207	1	-10	260	286	1,052	1,052
Depreciation/amortisation	201	196	88	68	103	92	53	55	188	182	633	592
EBIT	383	340	-108	-34	123	115	-52	-65	73	104	419	459
Investments	256	256	167	64	132	133	31	84	125	143	711	681
Segment assets	11,757	10,765	4,592	3,239	4,734	4,216	1,190	1,224	4,573	4,845	26,845	24,290
Segment liabilities	5,469	4,846	2,289	1,182	3,685	3,180	864	848	1,159	1,602	13,467	11,657
Employees at closing date
(full-time equivalents)	101,721	96,027	60,549	43,501	46,956	40,638	18,419	18,957	15,668	15,008	243,313	214,131
Selling space
(in 1,000 sqm)	4,534	4,289	3,569	2,693	1,986	1,784	1,484	1,485	417	436	11,990	10,687
Stores (number)	586	554	690	591	641	583	142	142	331	333	2,390	2,203

Regions

				Western Europe
	Germany		excl. Germany			Eastern Europe	Asia / Africa			Consolidation	METRO Group
€ million						H1 2007 H1 2006 H1 2007 H1 2006 H1 2007 H1 2006 H1 2007 H1 2006 H1 2007				H1 2006	H1 2007	H1 2006
External sales (net)	13,081	12,158	9,415	8,871	6,923	5,607	893	706	-	-	30,312	27,341
Internal sales (net)	5	6	1	0	-	-	346	334	-352	-341	-	-
Total sales (net)	13,086	12,164	9,416	8,871	6,923	5,607	1,239	1,040	-352	-341	30,312	27,341
EBITDA	340	391	345	349	365	321	-1	-6	3	-3	1,052	1,052
Depreciation/amortisation	326	326	156	147	134	102	18	17	0	0	633	592
EBIT	15	64	189	202	232	219	-19	-23	3	-3	419	459
Investments	316	317	114	165	245	176	36	23	-	-	711	681
Segment assets	13,448	12,454	8,910	8,062	6,514	4,800	846	697	-2,871	-1,724	26,845	24,290
Segment liabilities	6,400	5,696	4,281	3,956	2,823	1,946	383	332	-420	-273	13,467	11,657
Employees at closing date
(full-time equivalents)	108,613	100,319	50,807	48,375	70,442	53,965	13,451	11,472	-	-	243,313	214,131
Selling space
(in 1,000 sqm)	6,802	6,150	2,653	2,576	2,144	1,615	391	347	-	-	11,990	10,687
Stores (number)	1,518	1,436	516	490	303	230	53	47	-	-	2,390	2,203

Segment Reporting Q2 2007

Sales divisions

	Metro				Media Markt					Other/
	Cash & Carry			Real	and Saturn			Galeria Kaufhof		Consolidation	METRO Group
€ million		Q2 2007 Q2 2006 Q2 2007 Q2 2006 Q2 2007 Q2 2006 Q2 2007 Q2 2006 Q2 2007								Q2 2006	Q2 2007	Q2 2006
External sales (net)	7,778	7,396	3,016	2,419	3,565	3,202	786	802	247	215	15,393	14,033
Internal sales (net)	1	0	0	0	2	3	5	4	-8	-8	-	-
Total sales (net)	7,779	7,396	3,016	2,419	3,567	3,205	791	806	239	207	15,393	14,033
EBITDA	383	348	-7	39	108	98	-3	-11	136	155	618	629
Depreciation/amortisation	101	98	45	34	53	47	27	28	95	101	321	308
EBIT	281	250	-52	5	54	51	-29	-39	42	54	296	321
Investments	166	128	82	35	79	75	19	33	77	75	423	346
Segment assets	11,757	10,765	4,592	3,239	4,734	4,216	1,190	1,224	4,573	4,845	26,845	24,290
Segment liabilities	5,469	4,846	2,289	1,182	3,685	3,180	864	848	1,159	1,602	13,467	11,657
Employees at closing date (full-time equivalents)	101,721	96,027	60,549	43,501	46,956	40,638	18,419	18,957	15,668	15,008	243,313	214,131
Selling space (in 1,000 sqm)	4,534	4,289	3,569	2,693	1,986	1,784	1,484	1,485	417	436	11,990	10,687
Stores (number)	586	554	690	591	641	583	142	142	331	333	2,390	2,203

Regions

				Western Europe
	Germany		excl. Germany			Eastern Europe	Asia / Africa			Consolidation	METRO Group
€ million				Q2 2007 Q2 2006 Q2 2007 Q2 2006 Q2 2007 Q2 2006 Q2 2007 Q2 2006 Q2 2007						Q2 2006	Q2 2007	Q2 2006
External sales (net)	6,481	6,140	4,838	4,626	3,682	2,963	392	305	-	-	15,393	14,033
Internal sales (net)	3	3	0	0	-	-	159	146	-163	-149	-	-
Total sales (net)	6,484	6,143	4,838	4,626	3,682	2,963	551	451	-163	-149	15,393	14,033
EBITDA	195	253	194	194	232	188	-6	-7	3	1	618	629
Depreciation/amortisation	164	169	81	74	68	56	9	8	-1	0	321	308
EBIT	30	84	113	120	164	132	-16	-15	4	1	296	321
Investments	172	146	74	86	159	98	19	16	-	-	423	346
Segment assets	13,448	12,454	8,910	8,062	6,514	4,800	846	697	-2,871	-1,724	26,845	24,290
Segment liabilities	6,400	5,696	4,281	3,956	2,823	1,946	383	332	-420	-273	13,467	11,657
Employees at closing date (full-time equivalents)	108,613	100,319	50,807	48,375	70,442	53,965	13,451	11,472	-	-	243,313	214,131
Selling space (in 1,000 sqm)	6,802	6,150	2,653	2,576	2,144	1,615	391	347	-	-	11,990	10,687
Stores (number)	1,518	1,436	516	490	303	230	53	47	-	-	2,390	2,203

Notes to Group Accounting Principles and Methods

The interim consolidated financial statements as at 30 June 2007 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 2006. Details on applied recognition and valuation methods are provided in the notes of the annual consolidated financial statements as at 31 December 2006.

During the year, sales-dependent and cyclical positions are accounted for pro-rata based on corporate planning, if material.

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 (please see METRO Group's Annual Report 2006, pp. 105-106). 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 partly been left out. Therefore rounding differences can occur.

Notes to related parties

In H1 2007 companies that are included in the circle of related companies rendered goods/services to the amount of €72 million to METRO Group companies. These consist primarily of leasing services. 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.

Changes in the Supervisory Board

Mrs. Anja Kiehne-Neuberg left the Supervisory Board of METRO AG on 30 June 2007. Mr. Hubert Frieling was appointed as a member of the Supervisory Board with the resolution of the Düsseldorf District Court effective 20 July 2007.

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 2007

Board of Management

Review Report

To METRO AG, Düsseldorf

We have reviewed the condensed interim consolidated financial statements - comprising the balance sheet, income statement, cash flow statement, statement of changes in equity and selected explanatory notes - and the interim group management report of METRO AG, Düsseldorf for the period from January 1 to June 30, 2007 which are part of the half year financial reports according to § 37 w WpHG ["Wertpapierhandelsgesetz": "German Securities Trading Act"]. The preparation of the condensed interim consolidated financial statements in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, and of the interim group management report which has been prepared in accordance with the regulations of the German Securities Trading Act applicable to interim group management reports is the responsibility of the Company's management. Our responsibility is to issue a review report on these 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 conduct 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 regulations of the German Securities Trading Act 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 all material respects, 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 all material respects, in accordance with the regulations of the German Securities Trading Act applicable to interim group management reports.

Cologne, July 30, 2007

KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprüfungsgesellschaft

Siemes Dr. Böttcher

Wirtschaftsprüfer (Auditor) Wirtschaftsprüfer (Auditor)

METRO Group

Schlueterstrasse 1 40235 Duesseldorf

PO Box 230361 40089 Duesseldorf Germany

Investor Relations

Investor Hotline: +49 (0) 1802 – 725 750 Phone: +49 (0) 211 – 6886 - 1936 +49 (0) 211 – 6886 - 1051 Fax: +49 (0) 211 – 6886 - 3759 E-mail: investorrelations@metro.de

Creditor Relations

Phone:	+49 (0) 211 - 6886 - 1904
Fax:	+49 (0) 211 - 6886 - 1916
E-mail:	creditorrelations@metro.de

Corporate Communications

Phone:	+49 (0) 211 - 6886 - 2947
Fax:	+49 (0) 211 - 6886 - 2000
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 reagular news and official publications of the company online.

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

This 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 behavior 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 these 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 forward-looking statements to reflect events or circumstances after the date of these materials.

Financial Calendar

Tuesday, 30 October 2007, 7.15 h

Quarterly Financial Report Q3 2007

Thursday, 10 January 2008, 8.00 h

Trading Statement 2007

Tuesday, 18. March 2008, 8.00 h

Full Year 2007 Report