CECONOMY AG

Earnings Release • Feb 26, 2016

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

METRO GROUP with solid sales and resilient earnings trend in spite of macroeconomic challenges

Like-for-like sales increased by 0.1%

Reported EBIT rose noticeably to €1,240 million (Q1 2014/15: €876 million)

EBIT before special items: €828 million (Q1 2014/15: €891 million) including negative currency effects (about €40 million)

EPS before special items: €1.12 (Q1 2014/15 from continuing operations: €1.10)

Net debt at record low: distinct improvement from €1.5 billion to €0.1 billion compared with the previous year

Guidance confirmed for financial year 2015/16

METRO Cash & Carry

New segment structure - customer clusters replace regions

Sales: -2.0% particularly due to currency effects and portfolio optimisation (in local currency: +0.4%)

Like-for-like sales up 0.2%; 10th consecutive quarterly increase

EBIT adjusted for currency effects above previous year

Media-Saturn

Sales: +0.2% (in local currency: +1.1%)

Like-for-like sales up 0.4%; 6th consecutive quarterly increase

Online sales rose by about 12%

Media-Saturn's market share reached all-time high: share in 9 countries increased

Previous year's exceptional demand surge in Russia, the repositioning of Redcoon and price investments impact EBIT

Real

Sales: -3.9% due also to closures compared with the previous year's quarter

Like-for-like sales fell by 1.6%

EBIT at previous year's level

Overview Q1 2015/161

€ million	Q1 2014/15	Q1 2015/16	Change
Sales	17,318	17,090	-1.3%
Germany	6,775	6,809	0.5%
International	10,543	10,281	-2.5%
International share of sales	60.9%	60.2%	-
EBITDA 2	1,122	1,048	-6.6%
EBIT	876	1,240	41.6%
EBIT 2	891	828	-7.2%
Earnings before taxes (EBT) 2	781	724	-7.3%
Profit or loss for the period2, 3	445	367	-17.5%
Earnings per share from continuing operations (€)2	1.10	1.12	2.0%
EPS (€)2	1.36	1.12	-17.5%
Investments	162	337	-
Stores4	2,073	2,057	-0.8%

1From continuing operations

2Before special items

3Profit or loss for the period attributable to shareholders of METRO AG 4As of the closing date 31 December

Sales, earnings and financial position

Sales

METRO GROUP achieved a slight increase in like-for-like sales of 0.1% in the first quarter of 2015/16. Like-for-like sales at METRO Cash & Carry and Media-Saturn maintained their positive momentum, while sales at Real declined. The overall favourable development during the Christmas quarter of 2015 offset the pull-forward effects due to the rouble crisis that are included in the previous year's figure. METRO GROUP sales in local currency also increased by 0.1%. However, exchange rate developments – particularly relating to the Russian rouble – and portfolio effects caused reported sales to decline by 1.3% to €17.1 billion (Q1 2014/15: €17.3 billion).

Special items

Business transactions or a number of uniform business transactions that do not recur regularly, that are reflected in the income statement and that have a significant impact on business activities are classified as special items.

As a result, the presentation of special items better reflects ordinary business performance and contributes to a better understanding of the earnings position. An overview, including the reconciliation of special items, can be found on page 10. Accordingly, earnings figures before special items represent figures to which irregularly occurring expenses are added and from which irregularly occurring income is deducted.

Earnings

During the first quarter of 2015/16, EBIT at METRO GROUP amounted to €1,240 million (Q1 2014/15: €876 million) and included income of €427 million from the sale of METRO Cash & Carry Vietnam. This income represents a special item. EBIT before special items amounted to €828 million (Q1 2014/15: €891 million). The decline is particularly due to exchange rate losses of about €40 million related to the rouble.

The net financial result deteriorated in Q1 2015/16 from €-103 million to €-134 million. The net interest result improved substantially to €-63 million as a result of lower indebtedness and lower interest rates (Q1 2014/15: €-80 million). In contrast, the other financial result deteriorated from €-22 million to €-74 million. This was due, in particular, to higher expenses from currency effects and special items related to the sale of METRO Cash & Carry Vietnam. The net financial result before special items totalled €-104 million (Q1 2014/15: €-110 million). The other financial result before special items stood at €-48 million (Q1 2014/15: €-30 million).

In the first quarter of 2015/16, earnings before taxes amounted to €1,106 million (Q1 2014/15: €773 million). Before special items, earnings before taxes totalled €724 million (Q1 2014/15: €781 million).

Reported tax expenses of €509 million (Q1 2014/15: €399 million) correspond to a group tax rate of 46.0% (Q1 2014/15: 51.7%). Tax expenses before special items amounted to €307 million (Q1 2014/15: €365 million). This corresponds to a tax rate of 42.4% (Q1 2014/15: 46.8%).

The calculation is based on the so-called integral approach whereby the reported tax expenses correspond to the expected tax ratio as of the end of the financial year. The applied tax rates already consider the effects of the sale of METRO Cash & Carry Vietnam as of the end of December 2015.

In the first quarter of 2015/16, earnings per share amounted to €1.68 (Q1 2014/15 from continuing operations: €0.98). Adjusted for special items, earnings per share amounted to €1.12 (Q1 2014/15 from continuing operations: €1.10).

Financial position

Net debt, after netting cash and cash equivalents as well as financial investments with financial liabilities (including finance leases), developed very favourably. As of 31 December 2015, net debt improved markedly from €1.5 billion to €0.1 billion compared with the previous year. This was the lowest net debt recorded in the history of METRO AG. In addition, this figure does not include cash inflow from the sale of METRO Cash & Carry Vietnam in the amount of €0.4 billion, which was recorded at the beginning of January 2016 and thus during the second quarter of 2015/16.

In the first quarter of 2015/16, cash inflow from operating activities amounted to €3.1 billion (Q1 2014/15: €3.6 billion).

Cash flow from investing activities totalled €-0.6 billion (Q1 2014/15: €-0.3 billion), with investments in property, plant and equipment and investment certificates accounting for €0.3 billion each.

Cash flow from financing activities showed outflows of €2.1 billion (Q1 2014/15: cash outflow of €0.8 billion) that largely resulted from redemptions of financial debt.

Sales lines

METRO Cash & Carry

		Sales (€ million)		Change (€)		Currency effects		Change (local currency)		Like-for-like (local currency)
	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16
Total	8,197	8,037	-3.6%	-2.0%	-4.7%	-2.3%	1.1%	0.4%	1.4%	0.2%
Horeca	3,702	3,801	-0.1%	2.7%	-0.3%	-0.8%	0.1%	3.5%	0.3%	1.5%
Multispecialists	3,468	3,345	-4.1%	-3.5%	-9.2%	-3.9%	5.0%	0.3%	3.1%	-1.9%
Traders	784	767	-12.5%	-2.1%	-8.9%	-5.5%	-3.5%	3.4%	-0.4%	3.4%
Others	243	124	-	-	-	-	-	-	-	-

METRO Cash & Carry launched the New Operating Model in financial year 2014/15 to improve its business steering. In the context of the introduction of the new management model, the individual METRO Cash & Carry countries were divided into the following segments:

• Horeca: focusing on hotels, restaurants, catering firms
• Multispecialists: focusing on Horeca, traders and service companies and offices
• Traders: focusing on independent resellers such as kiosk operators, bakers and butchers, and
• others: trading offices and countries from which METRO Cash & Carry has withdrawn

This categorisation was guided by the respective national subsidiary's strategic focus on customer groups and expected market potential. With nearly half of the entire sales, the Horeca segment currently accounts for the largest share of METRO Cash & Carry sales. Under the New Operating Model, strategy and financial planning (Value Creation Plans) starts with the customer and the various market segments with the objective of identifying and exploiting the additional potential for METRO Cash & Carry in the individual countries. To achieve this objective, the company specifically aims to better understand the requirements of selected key customer groups to support the transformation from a transaction-based partner into a systemically important partner.

Starting in the first quarter of 2015/16, sales and earnings of METRO Cash & Carry are reported based on this new structure. The new segments thus replace the previous reporting regions of Germany, Western Europe, Eastern Europe and Asia/Africa. The Horeca segment includes France, Germany, Italy, Japan, Portugal, Spain, Turkey and Classic Fine Foods. The multispecialists segment covers Austria, Belgium, Bulgaria, China, Croatia, India, Kazakhstan, Netherlands, Pakistan, Russia, Serbia, Slovakia, Czech Republic and Hungary. The trader segment includes Moldova, Poland, Romania and Ukraine.

Like-for-like sales of METRO Cash & Carry increased by 0.2% during the first quarter of 2015/16, making this the 10th consecutive quarter with a positive sales trend. Measured in local currency, sales rose by 0.4%. Reported sales declined by 2.0% to €8.0 billion. However, it should be noted that portfolio effects had a negative impact on sales.

METRO Cash & Carry's delivery sales continued to develop dynamically, with sales rising by 18.6% to €0.9 billion. As a result, delivery sales accounted for 10.8% of total sales.

Like-for-like sales in the Horeca segment rose by 1.5%. Sales in local currency increased by 3.5%. Reported sales increased by 2.7%. As the largest Horeca country, Germany posted markedly higher sales. Sales were boosted, in particular, by the Christmas business in December. A successful customer offensive that included numerous marketing and communication initiatives supported this positive development. However, sales in Germany also increased over the quarter as a whole. Likefor-like sales developed positively in Turkey, Italy and Spain.

Like-for-like sales in the multispecialists cluster declined by 1.9%. Measured in local currency, sales rose by 0.3%. Conversely, reported sales declined by 3.5%. During the first quarter of the previous year, sales in the multispecialists segment had profited from pull-forward effects in Russia in the context of the rouble crisis. Sales declined compared with this high reference value for the previous year. Overall, however, METRO Cash & Carry performed well in a difficult economic environment in Russia. Like-for-like sales in China only declined slightly despite weaker economic growth and the decision to forgo low-margin volume business. In contrast, like-for-like sales improved in Hungary and India, but declined in Belgium and Pakistan.

Like-for-like sales in the trader segment increased by 3.4%. Lower sales in Poland were more than offset by the positive trend in Romania and Ukraine. Sales in local currency also increased by 3.4%. Conversely, reported sales declined by 2.1% due to currency effects.

€ million	Q1 2014/15	Q1 2015/16	Change
EBIT	485	877	80.8%
EBIT before special items	481	458	-4.8%
Investments	77	105	36.8%

During the first quarter of 2015/16, EBIT amounted to €877 million (Q1 2014/15: €485 million). This figure includes the sale of METRO Cash & Carry Vietnam as a special item. EBIT before special items amounted to €458 million (Q1 2014/15: €481 million). This decline is due mostly to negative currency effects of about €30 million, which relate particularly to Russia. However, METRO Cash & Carry's EBIT improved in local currency terms.

Media-Saturn

	Sales (€ million)		Change (€)		Currency effects		Change (local currency)		Like-for-like (local currency)
	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16
Total	6,875	6,889	4.1%	0.2%	-1.5%	-0.9%	5.6%	1.1%	3.8%	0.4%
Germany	3,189	3,291	1.4%	3.2%	0.0%	0.0%	1.4%	3.2%	0.4%	2.8%
Western Europe (excl. Germany)	2,688	2,758	4.8%	2.6%	-0.1%	0.9%	4.9%	1.7%	3.8%	0.3%
Eastern Europe	998	840	12.0%	-15.8%	-12.4%	-7.8%	24.4%	-8.0%	17.5%	-8.1%

Like-for-like sales of Media-Saturn rose by 0.4% in the first quarter of 2015/16 compared with the previous year's quarter. This 6th consecutive quarterly sales increase was particularly pleasing as substantial pull-forward effects in Russia in the first quarter of 2014/15 had boosted sales during that quarter. Media-Saturn's sales in local currency rose by 1.1% while reported sales improved by 0.2% to €6.9 billion due to the effect of currency translation.

During the Christmas quarter, online sales increased by another 12.0% to €0.6 billion. The multichannel business of the Media Markt and Saturn sales lines posted strong growth while sales of Redcoon retreated. The new strategic focus had a negative effect here.

In Germany, like-for-like sales increased markedly by 2.8% during the first quarter of 2015/16. Reported sales rose by as much as 3.2% compared to an already strong Christmas business in the previous year's quarter. As a result, Media-Saturn continued to gain market share.

As an integral component of Media-Saturn's business, the multichannel offering continued its very positive development. The online product range was expanded once again. At the end of December 2015, it consisted of about 217,000 items at Mediamarkt.de and about 194,000 at Saturn.de.

In October 2015, one Saturn Connect store each was opened in Trier and Cologne. This new format with selling space of 300 sqm to 700 sqm targets technophile consumers in innercity locations with high footfall. The assortment focuses on digital lifestyle products and is categorised into four theme worlds: Connected Mobile (telephone, notebooks, tablets), Connected Home (products and solutions for the networked home), Connected Fitness (wearables, action cameras, wellness products) and Connected Discovery (virtual reality glasses and appcessoires). The stores provide space to try out products as well as interactive offerings. Aside from the product assortment, the stores also provide comprehensive consulting and other services. Shortly after the opening of the first stores, the German Retail Federation (HDE) awarded the new format the quality seal "Store of the Year 2016" in the category "Out of Line". The jury particularly highlighted the simple, stylish architecture reflecting the tech theme. In addition, the format is a prime example of the digitalisation of store-based retail. For example, consultants can use a large number of monitors to present products to consumers.

Like-for-like sales in Western Europe increased by 0.3%, supported by very positive trends in several countries. Measured in local currency, sales rose by 1.7%. Reported sales even rose by 2.6%. Like-for-like sales developed very positively in the Netherlands and Spain while sales declined in Italy and Switzerland.

Like-for-like sales in Eastern Europe retreated by 8.1%. In this region, Russia had profited from substantial pull-forward effects at the peak of the rouble crisis in December 2014. As a result, sales in this country declined noticeably during the Christmas quarter. Even double-digit like-for-like sales growth in Turkey could not compensate for the decline in Russia.

€ million Q1 2014/15	Q1 2015/16	Change
EBIT 344	301	-12.4%
EBIT before special items 349	309	-11.5%
Investments 41	64	56.0%

During the first quarter of 2015/16, EBIT declined from €344 million to €301 million. This figure includes special items totalling €7 million (Q1 2014/15: €5 million). EBIT before special items declined from €349 million to €309 million. Negative currency effects contributed to this development. In addition the strong result in Russia due to pull-forward effects during the previous year's quarter was a reason for this year-to-year decline. Furthermore, the repositioning of Redcoon made an impact. Media-Saturn offered its customers attractive marketing measures and prices to gain market share. As a result, the sales line added market share in 9 out of 15 countries, with substantial gains in several of these markets.

Real

	Sales (€ million)		Change (€)		Currency effects		Change (local currency)		Like-for-like (local currency)
	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16
Germany	2,231	2,144	-0.8%	-3.9%	0.0%	0.0%	-0.8%	-3.9%	0.9%	-1.6%

Real's like-for-like sales declined by 1.6% during the Christmas quarter. Due mostly to store closures, reported sales retreated by 3.9% to €2.1 billion compared with the previous year's quarter.

In an environment characterised by intense competition and deflationary price trends, food sales were nearly stable in yearto-year comparison while non-food sales declined. The unusually warm winter weather weighed on weather-dependent assortments in particular. Online sales developed very positively with an increase of more than 70%. However, this increase only partially offset the sales drop in the store-based business.

€ million Q1 2014/15	Q1 2015/16	Change
EBIT 74	84	14.0%
EBIT before special items 84	83	-1.4%
Investments 12	143	-

During the first quarter of 2015/16, EBIT amounted to €84 million (Q1 2014/15: €74 million). This figure includes special items totalling €-1 million (Q1 2014/15: €10 million). EBIT before special items amounted to €83 million (Q1 2014/15: €84 million). Closures of loss-making stores during the previous year, better procurement terms and payment settlement by Markant offset the negative effects of the decline in like-for-like sales.

Others

€ million Q1 2014/15	Q1 2015/16	Change
Sales 15	19	32.2%
EBIT -29	-19	33.0%
EBIT before special items -25	-19	22.5%
Investments 32	25	-21.3%

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

In Q1 2015/16, sales in the Others segment totalled €19 million (Q1 2014/15: €15 million). Sales include, among other things, the 4 remaining Real stores in Romania and commissions from the third-party business operated by METRO GROUP's Hong Kong-based procurement organisation.

EBIT totalled €-19 million in the first quarter of 2015/16 (Q1 2014/15: €-29 million). No special items were recorded (Q1 2014/15: €4 million). EBIT before special items thus also amounted to €-19 million (Q1 2014/15: €-25 million).

Outlook

The METRO GROUP forecast is based on the current group structure and refers to currency-adjusted figures. In addition, it is based on the assumption of a persistently complex geopolitical situation.

Sales

For financial year 2015/16, METRO GROUP continues to expect a slight increase in overall sales, despite the persistently challenging economic environment.

In like-for-like sales, METRO GROUP foresees a slight increase that will follow the 1.5% gain in the previous year. METRO Cash & Carry and Media-Saturn are expected to be the key drivers of total sales and like-for-like sales growth; METRO GROUP projects an improvement compared with the previous year for the Real sales line.

Earnings

In financial year 2015/16, earnings development will also be shaped by the persistently challenging economic environment. Nevertheless, METRO GROUP remains confident that it can continue its earnings growth as a result of the progress it has made and will continue to make in transforming its business models. Aside from operational improvements, METRO GROUP will again closely focus on efficient structures and strict cost management in 2015/16 in this context.

For these reasons, METRO GROUP expects EBIT before special items to rise slightly above the €1,511 million achieved in financial year 2014/15, including income from real estate sales. METRO Cash & Carry and Media-Saturn are expected to be the key drivers of the increase. Developments at the Real sales line will depend on the successful implementation of the measures that have been initiated.

Store network

Development of the store network Q1 2015/16

	30/9/2015	New store openings/ additions Q1 2015/16	Closures/ disposals Q1 2015/16	31/12/2015	Change (absolute)
METRO Cash & Carry	764	+5	-19	750	-14
Media-Saturn	1,007	+6	-3	1,010	+3
Real	293			293
Total	2,068*	+11	-22	2,057*	-11

Store network as of 31 December 2015

	METRO Cash & Carry		Media-Saturn			Real	METRO GROUP
	Openings/ additions Q1 2015/16	Closures/ disposals Q1 2015/16	31/12/2015	Openings/ additions Q1 2015/16	Closures/ disposals Q1 2015/16	31/12/2015	Openings/ Closures/ additions disposals Q1 2015/16 Q1 2015/16	31/12/2015	Openings/ additions Q1 2015/16	Closures/ disposals Q1 2015/16	31/12/2015
Germany			107	+2		419		293	+2		819
Austria			12			48					60
Belgium			15			23		293			38
France	+1		94						+1		94
Italy			48	+1	-1	110			+1	-1	158
Luxembourg						2					2
Netherlands			17			49					66
Portugal			10			9					19
Spain			37			77					114
Sweden						27					27
Switzerland						27					27
Western Europe (excl. Germany)	+1		233	+1	-1	372			+2	-1	605
Bulgaria			11								11
Croatia			8								8
Czech Republic			13								13
Greece						10					10
Hungary			13	+1		22			+1		35
Kazakhstan			7								7
Moldova			3								3
Poland			41	+1		80			+1		121
Romania			31								31
Russia	+3		87		-2	65			+3	-2	152
Serbia			10								10
Slovakia			6								6
Turkey			29	+1		42			+1		71
Ukraine			32								32
Eastern Europe	+3		291	+3	-2	219			+6	-2	510
China			82								82
India	+1		19						+1		19
Japan			9								9
Pakistan			9								9
Vietnam		-19								-19
Asia	+1	-19	119						+1	-19	119
Total	+5	-19	750	+6	-3	1,010		293	+11	-22	2,057*

*Including 4 stores in the Others segment

Reconciliation of special items1

Q1 2015/16

Special items

by sales line

As reported				Before special items
Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16
1,107	1,460	14	-412	1,122	1,048
587	980	-4	-419	584	562
406	358	3	7	409	365
105	119	10	-1	116	118
8	6	4	0	13	6
1	-4	0	0	1	-4
876	1,240	16	-412	891	828
485	877	-3	-419	481	458
344	301	5	7	349	309
74	84	10	-1	84	83
-29	-19	4	0	-25	-19
2	-3	0	0	2	-3
-103	-134	-8	30	-110	-104
773	1,106	8	-382	781	724
-399	-509	34	202	-365	-307
374	597	42	-180	416	417
85	0	0	0	85	0
459	597	42	-180	501	417
55	48	1	2	56	50
55	48	1	2	56	50
0	0	0	0	0	0
404	549	41	-182	445	367
319	549	41	-182	360	367
85	0	0	0	85	0
1.24	1.68	0.12	-0.56	1.36	1.12
0.98	1.68	0.12	-0.56	1.10	1.12
0.26	0.00	0.00	0.00	0.26	0.00
				Special items

1Adjustment of previous year's figures due to discontinued operations (Galeria Kaufhof group)

Income statement1

€ million Q1 2014/15	Q1 2015/16
Sales 17,318	17,090
Cost of sales -13,878	-13,718
Gross profit on sales 3,440	3,372
Other operating income 321	734
Selling expenses -2,549	-2,501
General administrative expenses -324	-352
Other operating expenses -12	-13
Earnings share of operating companies recognised at equity 0	0
Earnings before interest and taxes EBIT 876	1,240
Earnings share of non-operating companies recognised at equity 0	3
Other investment result -1	0
Interest income 13	13
Interest expenses -93	-76
Other financial result -22	-74
Net financial result -103	-134
EBT (earnings before taxes) 773	1,106
Income taxes -399	-509
Profit or loss for the period from continuing operations 374	597
Profit or loss for the period from discontinued operations 85	0
Profit or loss for the period 459	597
Profit or loss for the period attributable to non-controlling interests 55	48
from continuing operations 55	48
from discontinued operations 0	0
Profit or loss for the period attributable to shareholders of METRO AG 404	549
from continuing operations 319	549
from discontinued operations 85	0
Earnings per share in € (basic = diluted) 1.24	1.68
from continuing operations 0.98	1.68
from discontinued operations 0.26	0.00

1Adjustment of previous year's figures due to discontinued operations (Galeria Kaufhof group)

Balance sheet

Assets

€ million	30/9/2015	31/12/2014	31/12/2015
Non-current assets	13,207	14,918	13,153
Goodwill	3,301	3,645	3,310
Other intangible assets	464	370	460
Property, plant and equipment	7,955	9,445	7,946
Investment properties	170	221	175
Financial assets	117	71	121
Investments accounted for using the equity method	184	95	183
Other financial and non-financial assets	292	261	344
Deferred tax assets	724	810	614
Current assets	14,449	16,713	17,104
Inventories	5,439	6,770	6,628
Trade receivables	702	658	775
Financial assets	6	1	6
Other financial and non-financial assets	3,435	3,595	4,720
Entitlements to income tax refunds	202	193	245
Cash and cash equivalents	4,415	4,884	4,711
Assets held for sale	250	612	19
	27,656	31,631	30,257

Equity and liabilities

€ million	30/9/2015	31/12/2014	31/12/2015
Equity	5,172	5,061	5,714
Share capital	835	835	835
Capital reserve	2,551	2,551	2,551
Reserves retained from earnings	1,793	1,646	2,313
Non-controlling interests	-7	29	15
Non-current liabilities	6,841	7,420	6,827
Provisions for pensions and similar obligations	1,270	1,859	1,268
Other provisions	492	462	462
Borrowings	4,731	4,839	4,769
Other financial and non-financial liabilities	206	159	213
Deferred tax liabilities	142	101	115
Current liabilities	15,643	19,150	17,716
Trade liabilities	9,550	13,742	13,387
Provisions	628	573	631
Borrowings	2,635	1,564	892
Other financial and non-financial liabilities	2,488	2,546	2,391
Income tax liabilities	148	430	415
Liabilities related to assets held for sale	194	295	0
	27,656	31,631	30,257

Cash flow statement1

€ million	Q1 2014/15	Q1 2015/16
EBIT	876	1,240
Depreciation/amortisation/impairment losses/reversal of impairment losses of assets excl. financial investments	232	220
Change in provisions for post-employment benefits plans and similar obligations	-42	-59
Change in net working capital	2,272	2,015
Income taxes paid	-123	-132
Reclassification of gains (-) / losses (+) from the disposal of fixed assets	-10	1
Other	111	-216
Cash flow from operating activities of continuing operations	3,316	3,069
Cash flow from operating activities of discontinued operations	300	0
Cash flow from operating activities	3,616	3,069
Corporate acquisitions	0	-55
Investments in property, plant and equipment (excl. finance leases)	-295	-278
Other investments	-27	-416
Divestments	5	-6
Disposal of fixed assets	43	30
Gains (+) / losses (-) from the disposal of fixed assets	10	-1
Cash flow from investing activities of continuing operations	-264	-726
Cash flow from investing activities of discontinued operations	-26	86
Cash flow from investing activities	-290	-640
Profit distribution
to METRO AG shareholders2	0	0
to other shareholders2	-29	-24
Redemption of liabilities from put options of non-controlling interests	0	-86
Proceeds from long-term financial liabilities	500	0
Redemption of financial liabilities	-930	-1,910
Interest paid	-90	-76
Interest received	17	13
Profit and loss transfers and other financing activities	-11	-51
Cash flow from financing activities of continuing operations	-543	-2,134
Cash flow from financing activities of discontinued operations	-258	0
Cash flow from financing activities	-801	-2,134
Total cash flows	2,525	295
Currency effects on cash and cash equivalents	-29	0
Total change in cash and cash equivalents	2,496	295
Cash and cash equivalents as of 1 October	2,409	4,417
Cash and cash equivalents shown under IFRS 5 assets	3	2
Cash and cash equivalents on 1 October	2,406	4,415
Total cash and cash equivalents as of 31 December	4,905	4,712
Cash and cash equivalents shown under IFRS 5 assets	21	0
Cash and cash equivalents as of 31 December	4,884	4,712

1Adjustment of previous year's figures due to discontinued operations (Galeria Kaufhof group)

2The reported dividend does not include dividends to non-controlling interests whose interests are shown fully as debt capital due to put options

Segment reporting Q1 2015/161

Operating segments Continuing operations of the Group METRO Cash & Carry Media-Saturn Real Others € million Q1 2014/15 Q1 2015/16 Q1 2014/15 Q1 2015/16 Q1 2014/15 Q1 2015/16 Q1 2014/15 Q1 2015/16 Sales 8,197 8,037 6,875 6,889 2,231 2,144 15 19 EBITDA 587 980 406 358 105 119 8 6 EBITDA before special items 584 562 409 365 116 118 13 6 EBIT 485 877 344 301 74 84 -29 -19 EBIT before special items 481 458 349 309 84 83 -25 -19 Investments 77 105 41 64 12 143 32 25

Operating segments continued	Continuing operations of the Group			Discontinued operations of the Group
	Consolidation		METRO GROUP
€ million	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16	Q1 2014/15	Q1 2015/16
Sales	0	0	17,318	17,090	993	0
EBITDA	1	-4	1,107	1,460	162	0
EBITDA before special items	1	-4	1,122	1,048	n.a.	n.a.
EBIT	2	-3	876	1,240	133	0
EBIT before special items	2	-3	891	828	n.a.	n.a.
Investments	0	0	162	337	14	0

1Adjustment of previous year's figures due to discontinued operations (Galeria Kaufhof group)

Financial calendar 2015/16

Annual General Meeting 2016	Friday	19 February 2016	10.30 a.m.
Half-Year Financial Report H1/Q2 2015/16	Wednesday	11 May 2016	7.30 a.m.
Quarterly Statement 9M/Q3 2015/16	Tuesday	2 August 2016	7.30 a.m.
Trading Statement Financial Year 2015/16	Wednesday	19 October 2016	7.30 a.m.

All time specifications are CET

Imprint

METRO AG Metro-Strasse 1 40235 Düsseldorf, Germany

PO Box 230361 40089 Düsseldorf, Germany

www.metrogroup.de

Published: 11 February 2016

Investor Relations

Telephone	+49 (211) 6886-1051
Fax	+49 (211) 6886-3759
E-mail	investorrelations@metro.de

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

Corporate Communications

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E-mail	presse@metro.de

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

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

Disclaimer

This quarterly statement 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.