Interim / Quarterly Report • Aug 3, 2010
Interim / Quarterly Report
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METRO GROUP sales grow by 2.4% to €31.2 billion GROUP €31.2 billion %
Sales in Germany adjusted for store disposals slightly below prior year's level level
International sales increase by 4.9% International sales increase 4.9% (Western Europe: +4.0%; Eastern Europe: +5.6%; Asia/Africa: +8.6%) /Africa:
Efficiency- Efficiency- and value value-enhancing programme Shape 201 enhancing 2012 further on track
EBIT before special items grows due to Shape contributions by €67 million to €470 million million
Expansion with with 28new store openings new openings
Net debt reduced by €134 million debt €134 million
Capex budget increased from from €1.9 billion to €2.1 billion €1.9 billion to €2.1 billion billion €2.1 billion
METRO GROUP sales grow by 2.4% to €15.7 billion GROUP €15.7 billion ales
Sales: +0.6% Turnaround programme in Germany shows progress Slight trend improvement in Eastern Europe Sales jump in the growth region Asia Market entry into Egypt
Sales: +0.1% Sales development impaired by shift of Easter business Eastern Europe again with double-digit sales growth
Sales: +9.3% Germany with tangible sales growth Double-digit sales growth rates in the international business: Western Europe with 4.8% like-for-like sales growth
Sales: -2.6% Sales development negatively affected by the shift of Easter business
EBITbefore special items grows by €18 million to €334 m special million
EBIT before special items1) 2) (€ million) million) million) EPS before special items EPS 1) 2) (€)
| € million | H1 2009 2) | H1 2010 H1 2010 |
Change (€) | Change (LC) |
|---|---|---|---|---|
| Sales | 30,505 | 31,223 | 2.4% | 0.6% |
| Germany | 12,353 | 12,179 | -1.4% | -1.4% |
| International | 18,152 | 19,044 | 4.9% | 2.0% |
| Western Europe (excl. Germany) | 9,600 | 9,980 | 4.0% | 3.5% |
| Eastern Europe | 7,346 | 7,755 | 5.6% | -0.9% |
| Asia/Africa | 1,206 | 1,309 | 8.6% | 9.1% |
| International share of sales | 59.5% | 61.0% | - | |
| EBITDA | 955 | 1,048 | 9.7% | |
| EBITDA before special items 1) | 1,049 | 1,132 | 7.8% | |
| EBIT | 302 | 369 | 22.0% | |
| EBIT before special items 1) | 403 | 470 | 16.6% | |
| EBT | -13 | 92 | - | |
| EBT before special items 1) | 88 | 193 | - | |
| EPS (€) | -0.14 | 0.08 | - | |
| EPS before special items (€) 1) | 0.06 | 0.29 | - | |
| Capex | 556 | 454 | -18.3% | |
| Stores | 2,128 | 2,112 | -0.8% | |
| Selling space (1,000 sqm) | 12,458 | 12,637 | 1.4% | |
| Employees (full-time basis) | 252,481 | 249,151 249,151 249,151 | -1.3% | |
1) Special items overview on pp. 19-20
2) Adjustment of previous year's figures due to first-time adoption of revised IFRS
| € million | Q2 2009 2) | Q2 2010 2010 |
Change (€) | Change (LC) |
|---|---|---|---|---|
| Sales | 15,338 | 15,706 | 2.4% | 0.2% |
| Germany | 6,114 | 5,980 | -2.2% | -2.2% |
| International | 9,225 | 9,726 | 5.4% | 1.8% |
| Western Europe (excl. Germany) | 4,910 | 5,089 | 3.6% | 3.1% |
| Eastern Europe | 3,797 | 4,030 | 6.1% | -0.9% |
| Asia/Africa | 517 | 607 | 17.3% | 10.6% |
| International share of sales | 60.1% | 61.9% | - | |
| EBITDA | 576 | 595 | 3.4% | |
| EBITDA before special items 1) | 638 | 660 | 3.4% | |
| EBIT | 248 | 252 | 1.6% | |
| EBIT before special items 1) | 316 | 334 | 5.6% | |
| EBT | 105 | 88 | -16.0% | |
| EBT before special items 1) | 173 | 170 | -1.7% | |
| EPS (€) | 0.16 | 0.13 | -16.7% | |
| EPS before special items (€) 1) | 0.29 | 0.30 | 6.1% | |
| Capex | 310 | 262 | -15.5% | |
| Stores | 2,128 | 2,112 | -0.8% | |
| Selling space (1,000 sqm) | 12,458 | 12,637 | 1.4% | |
| Employees (full-time basis) | 252,481 | 249,151 249,151 249,151 | -1.3% | |
1) Special items overview on pp. 19-20
2) Adjustment of previous year's figures due to first-time adoption of revised IFRS
The global economy saw a recovery in H1 2010. All regions grew again. In total all regions reported growth again. However, the recovery differed from region to region. While the emerging markets in Asia reported again very high growth dynamics, many countries, especially in Europe, recovered only very slowly. Thereby the economic development was burdened by the high fiscal deficits, as well as the necessary savings measures for consolidating public budgets.
The retail sector has so far only partly benefited from the economic recovery, especially in West and East Europe on the back of increasing unemployment. However in the course of the year, nominal retail sales showed a slight increase in most European countries. Due to the still relatively low capacity utilisation, inflationary pressure remained small; except in Asia. Here, price increases were higher due to the stronger demand dynamics.
Compared to Western Europe,Germany GermanyGermany showed a strong economic recovery in H1 2010. The German recovery, as in the past, was mainly export-driven. Thereby, Germany benefited from increasing demand dynamics from emerging markets and the euro devaluation. Compared to other European countries, the employment market remained robust, also during the crisis, thanks to the short-time labour scheme. Unemployment even declined again since March. However, domestic demand showed only a weak development. Private consumption and retail sales decreased in H1 2010 compared to the prior year. Inflation continued to develop on a low level.
In Western Europe Western Europe Europe, the economic recovery progressed only moderately. The prevailing issues in H1 were the preservation of the Eurozone and the reduction of fiscal deficits via comprehensive savings measures. Consequently, consumer confidence dampened in many countries once again in recent months. Thus recovery in the retail sector has been so far very moderate with low nominal growth.
Also the economies in Eastern Europe Eastern EuropeEurope benefited from the global economic development. However, the recovery differed greatly from country to country, and in many countries economic growth was slow. During the year, the retail sector showed a trend improvement, but continued to decline in real terms. Only Russia saw strong retail sales growth.
Asia remained also in H1 2010 the growth driver in Asia the global economy. The growth rates of the emerging markets have already returned to the pre-crisis level and Japan too is recovering. Consequently, also the retail sector developed positively.
From January to June 2010 January to June 2010 January June 2010, METRO GROUP generated sales of €31.2 billion (H1 2009: €30.5 billion). This corresponds to a 2.4% sales increase. The sales development in H1 was thereby supported by positive currency effects. However, price effects contributed only to a very small extent to the sales development in H1. In local currency, METRO GROUP's sales grew by 0.6%.
The sales development in Q2 2010 2010 was marked by the shift of the Easter business. Q1 benefited from the earlier timing of the Easter business; for that reason Q2 saw a contrary development. Nevertheless, METRO GROUP's sales increased in comparison to Q2 2009. Sales in Q2 2010 grew by 2.4% to €15.7 billion (Q2 2009: €15.3 billion). In local currency, sales rose by 0.2%.
Sales in Germany Germany Germany in H1 2010 were slightly below prior year's level, especially due to store disposals, and declined by 1.4% to €12.2 billion. Adjusted for store disposals and divestments, sales were only 0.3% below H1 2009. Q2 was materially characterised by the shift of the Easter business. In addition, the unusually cold weather conditions in April and May impaired the sales development in several categories. The food sales development was marked by deflationary – albeit declining – trends. In contrast, consumer electronics sales developed satisfactorily in connection with the FIFA World Cup.
In H1 2010, international international international sales grew by 4.9% to €19.0 billion. Also adjusted for currency effects sales rose, namely by 2.0%. Therefore the international share of sales increased from 59.5% to 61.0%. In Q2 2010, sales increased by 5.4% with support from positive currency effects. In local currency, sales grew by 1.8%. The international share of sales amounted to 61.9% compared to 60.1% in Q2 2009.
Sales in Western Europe (excluding Germany) (excluding in H1 2010 grew by 4.0% to €10.0 billion. Adjusted for currency effects, sales increased by 3.5%. Thereby, Q2 sales development almost reached the Q1 level in spite of the shift of Easter business.
In H1 2010, sales in Eastern Europe Eastern EuropeEurope grew by 5.6% to €7.8 billion. Sales growth now resulted from an overall positive currency development, following significantly negative currency effects in 2009. Adjusted for currency effects, sales declined by 0.9%. Q2 continued to show a very reserved development also given the still difficult market conditions, especially for non-food. Furthermore, in Poland the period of national mourning, as well as the flooding led to sales declines. All in all, the Eastern European business showed a slight trend improvement in the course of Q2.
Sales in H1 2010 in Asia/Africa Asia/AfricaAsia/Africa grew significantly by 8.6% to €1.3 billion. Adjusted for currency effects, sales increased by 9.1%. Thereby, sales growth in Q2 accelerated.
EBITDA in H1 2010 amounted to €1,048 million (H1 20 EBITDA 09: €955 million) and included expenses amounting to €84 million (H1 2009: €94 million) resulting from the efficiency- and value-enhancing programme Shape 2012. An overview of the special items is shown on pages 19 and 20. These special items concern expenses incurred in particular for restructuring measures. Of which, €60 million are attributable to Metro Cash & Carry, €4 million to Media Markt and Saturn, €1 million to Real Estate, €18 million to the segment Other, and €1 million to Consolidation. Adjusted for these special items, EBITDA amounted to €1,132 million following €1,049 million in H1 2009.
EBIT in H1 2010 increased significantly by €67 mill EBIT ion to €369 million (H1 2009: €302 million) and included €101 million special items (H1 2009: €101 million) relating to Shape 2012. Also adjusted for theses special items, EBIT significantly increased from €403 million to €470 million. The increase resulted from cost savings, but also from productivity gains, relating to Shape 2012. Adjusted for special items, EBIT in Q2 grew by €18 million to €334 million. Also due to the earlier timing of the Easter business, the earnings increase in Q1 was higher than that of Q2.
The net financial result net result result amounted to €-277 million compared to €-315 million in H1 2009. Whilst interest expenses increased, interest income lessened due to a lower interest rate level. However, the other financial result increased notably due to positive currency effects.
In H1 2010, EBT amounted to €92 million (H1 2009: €-13 million). Adjusted for special items, EBT was €193 million (H1 2009: €88 million). EPS was €0.08 compared to €-0.14 in H1 2009. Adjusted for special items, EPS also increased significantly from €0.06 to €0.29.
METRO GROUP started its comprehensive efficiency- and value-enhancing programme Shape 2012 in 2009. In the course of the programme, new organisational structures have been introduced and implemented. Numerous measures already contributed positively to earnings.
Following the dissolution of the central structures in the financial year 2009, a further step to reorganise METRO GROUP was executed in H1 2010. An important aspect of the reorganisation is the split of Metro Cash & Carry into two business units: the business unit Europe/MENA (Middle East and North Africa), and the business unit Asia/New Markets, including Russia, Ukraine and Kazakhstan. The central functions of the operational business, e.g. procurement or supply chain management, will continue to be jointly run. Therewith, the organisational foundation for the successful implementation of the Shape programme, as well as for the acceleration of the international expansion in the medium term was further strengthened. The new structure was widely implemented within only three months and reflects the importance of Metro Cash & Carry for METRO GROUP.
Furthermore, In the course of this reorganisation the management and administrative functions of the Group holding, METRO AG, and those of Metro Cash & Carry International GmbH were integrated. Consequently, around 15% of the respective administration positions can be reduced. The integration was effective from 1 July 2010. The further optimisation of the administrative functions and processes will also be in the focus of H2 2010. This especially includes the transformation of the IT-organisation.
All in all, METRO GROUP will become even more efficient and more effective with the new structures.
Special items regarding Shape 2012 for measures to optimise personnel, the store base and supply chain were incurred also in 2010. In H1, EBIT effective one-off expenses relating to Shape 2012 amounted to €101 million.
To be classed as a Shape special item, the expense (incl. consultancy fees) must relate to a restructuring measure, which leads to personnel reduction, store closures, part closures of sales space or liquidation of companies.
According to this definition, METRO GROUP currently expects gross one-off expenses resulting from the implementation of Shape 2012 for the years 2009 until 2011 to total approx. €650 million. The bulk of these one-offs was incurred in the financial year 2009 (€343 million). In light of the restructuring progress, the one-off expenses for the current financial year are now expected to exceed €170 million. Accordingly, the expenses to be incurred in 2011 will be lower than the originally planned amount of c.€130 million.
METRO GROUP's capex in H1 2010 amounted to €454 million (H1 2009: €556 million). This decline reflects the lower capex in the segment real estate.
In H1 2010, 28 new stores were opened and 43 closed respectively sold on. Thereof, 17 new store openings and 29 closures took place in Q2.
On 30 June 2010, Metro Cash & Carry opened its first store in Egypt. All in all, four Metro Cash & Carry stores were opened in H1 2010. In the course of the store network optimisation, three stores in Germany and one store in Portugal were disposed of. Real opened one store in Romania. Nine hypermarkets were closed respectively sold on, thereof eight in Germany and one in Turkey. Media Markt and Saturn opened 23 stores und closed down one store in Hungary. As previously announced, Galeria Kaufhof closed down three department stores in Germany. In the segment Other, 26 Grillpfanne restaurants were closed down. As at the end of June 2010, METRO GROUP operated 2,112 stores.
A detailed view on the business development of the individual divisions is shown on pages 10 to 18.
METRO GROUP uses typical capital market permanent issuance programmes for funding purposes. To cover medium- and long-term funding requirements, the Group has a "Debt Issuance Programme" available. Bonds are issued from this programme. The maximum programme volume was increased from €5 billion to €6 billion in Q2 2010. This increase reflects METRO GROUP's stronger orientation towards long-term financial instruments within the financing strategy. Most recently, a €750 million bond with a 4.25% coupon and a seven-year maturity was issued at the end of February 2010. Therewith the term structure of the financial debt was further optimised.
Both the "Euro Commercial Paper Programme" with an available volume of up to €2 billion, as well as a further commercial paper programme, specifically geared to French investors, facilitate the coverage of short-term funding requirements. The volume of the latter programme was reduced from €3 billion to €2 billion in Q2 2010. The drawdown on both programmes in H1 2010 only amounted to €0.5 billion (H1 2009: €1.7 billion).
In addition, METRO GROUP has bilateral and syndicated credit facilities amounting to €5.6 billion with durations up to 2013. As at 30 June 2010, the drawdown thereof was €1.4 billion (30 June 2009: €1.3 billion).
Total assets decreased by €2.5 billion to €30.8 billion compared to 31/12/2009. This is mainly due to the decrease in cash and cash equivalents typical for Q1 in comparison to the year-end closing. Translation effects from again slightly stronger currencies, especially in Eastern Europe, had a contrasting effect.
* Adjustment of previous year's figures due to a change in disclosure
As at 30 June 2010, METRO GROUP's balance sheet disclosed €5.8 billion equity. The year-to-date equity ratio increased from 18.0% to 18.9%.
Net debt, after netting cash and cash equivalents, as well as bank deposits, with financial liabilities (including finance leases), totalled €8.3 billion compared to €4.2 billion as at 31/12/2009. This increase in net debt against the prior year-end closing is characteristic and resulted mainly from the reduction in trade payables of €3.9 billion. The reason for this reduction lies in the high share of sales Q4 contributes to the full year, which regularly corresponds to high trade payables at the year-end closing. However, year-on-year net debt improved by €0.1 billion.
From operating activities of continuing operations a €3.1 billion cash outflow resulted in H1 2010 (H1 2009: cash outflow of €2.8 billion).
Cash flow from investing activities included cash inflows relating to prior year property sales, and showed a cash outflow amounting to €0.2 billion (H1 2009: cash outflow of €0.4 billion).
Cash flow from continuing operations before financing activities was on prior year's level and amounted to €-3.2 billion.
The cash inflow from financing activities of continuing operations amounted to €1.0 billion (H1 2009: cash inflow of €1.1 billion).
In H1 2010 no material change arose from the reported opportunities and risks concerning the ongoing development of METRO GROUP as described in detail in the Annual Report 2009 (pp. 118-121).
There are no risks that could endanger the company's existence and at present none can be identified for the future.
METRO GROUP assumes an active role in the "Climate Protection Dialogue of Industry and Politics", which began on 25 May 2010 in Berlin and headed by the Federal Minister for the Environment Dr. Norbert Röttgen. More than 50 representatives from the major industry and energy associations participated in this summit. Until the end of 2010, METRO GROUP, together with industry representatives and the Federal Ministry for the Environment, will put key measures of the "Integrated Energy and Climate Programme" to the test. Dr Eckhard Cordes, CEO of METRO GROUP, will chair the work group, which will focus on "Products".
On 30 June 2010, the report "Sustainability 2009 – Key Performance Indicators and Targets" was published. This is a pre-release of the most important key indicators. Also included therein is the 2009 carbon footprint. The Sustainability Report 2009 of METRO GROUP will be published in September.
On 29 July 2010, the Supervisory Board of METRO AG resolved on the revocation by mutual agreement of Thomas Unger's appointment as Vice Chairman of the Management Board. As a consequence, the Management Board will be downsized from five to four members and the responsibilities reassigned. From October 2010, the CEO Dr Eckhard Cordes will also be responsible for Media Markt and Saturn, as well as for Internal Audit, and the CFO Olaf Koch for Galeria Kaufhof. The Management Board member Frans Muller will in addition assume responsibility for the Group's Real Estate segment (MAM).
In H2 2010, the global economic recovery is likely to lose momentum. All in all, however, unemployment (which lags in the economic cycle) is not expected to increase further. The leading indicators are now declining slightly after a significant rise. Asian growth is being curbed by preventive measures against economic overheating. Savings programmes in many countries to repay debt will impair Europe's economic recovery and private demand in particular.
Despite the slow recovery, Eastern Europe, together with Asia, shows the highest economic potential Thus, we expect that the Eastern European economies to develop again high economic growth dynamics in the mediumterm, also due to the still high pent-up demand potential.
METRO GROUP will continue on its profitable growth course and thus expand its position as one of the leading international retail groups over the next few years. All in all, H1 2010 showed a slight trend improvement; also in H2, we expect this development to continue.
In H2 2009, the business development in Eastern Europe decreased significantly. Against this backdrop, METRO GROUP expects a further trend improvement in Eastern Europe in H2 2010. Conversely, in Western Europe the planned and resolved fiscal savings measures could negatively affect consumer sentiment. This could impair the further business development in this region.
However, METRO GROUP considers itself well prepared for the future and can build upon a successful portfolio of sales divisions. In addition, with Shape 2012, the company is implementing a programme that will accompany METRO Group into a successful and profitable future.
For 2010, METRO GROUP expects sales to exceed the previous year's level but to still fall short of the mediumterm target level of 6% growth per year. Aside from the macroeconomic situation, this is also attributable to the lower number of new store openings in 2009 and 2010.
Due mostly to the contributions from Shape 2012, METRO GROUP expects EBIT before special items in 2010 to tangibly exceed the 2009 level.
The company's medium-term growth target for EBIT be fore special effects is more than 10% per year. Shape 2012 will unleash its positive earnings impact successively and become fully effective from 2012 on.
In light of the solid business development in H1 2010, METRO GROUP has increased its planned capex from previously €1.9 billion to €2.1 billion. This broadly corresponds to the medium-term targeted capex budget of at least €2.2 billion. Now, METRO GROUP plans to open in total more than 95 stores.
| Sales Sales € million |
Change Change (€) |
Currency Currency Currency effects |
Change (local currency) |
lfl (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| H1 2009 H1 2010 2010 | H1 2009 H1 2010 2010 | H1 2009 H1 2010 H1 2010 | H1 2009 H1 2010 2010 2010 | H1 2009 H1 2010 | ||||||
| Total Total |
14,643 | 14,648 14,648 |
-6.5% | 0.0% | -4.7% | 2.0% | -1.8% | -2.0% | -4.3% | -2.8% |
| Germany | 2,612 | 2,527 | -3.1% | -3.3% | 0.0% | 0.0% | -3.1% | -3.3% | -4.6% | -2.4% |
| Western Europe (excl. Germany) | 5,748 | 5,658 | -4.5% | -1.6% | -1.2% | 0.2% | -3.3% | -1.8% | -4.2% | -1.5% |
| Eastern Europe | 5,204 | 5,259 | -13.3% | 1.1% | -13.4% | 5.4% | 0.1% | -4.3% | -4.3% | -6.1% |
| Asia/Africa | 1,079 | 1,203 | 15.0% | 11.6% | 13.6% | -0.5% | 1.4% | 12.1% | -5.1% | 6.0% |
| Sales Sales € million |
Change Change (€) |
Currency Currency Currency effects |
Change (local currency) |
lfl (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q2 2009 Q2 2010 2010 | Q2 2009 Q2 2010 2010 | Q2 2009 Q2 2010 Q2 2010 | Q2 2009 Q2 2010 Q2 2010 2010 | Q2 2009 Q2 2010 | ||||||
| Total Total |
7,650 | 7,697 7,697 |
-6.6% | 0.6% | -4.9% | 2.7% | -1.7% | -2.1% | -4.2% | -2.9% |
| Germany | 1,377 | 1,315 | -1.0% | -4.5% | 0.0% | 0.0% | -1.0% | -4.5% | -2.2% | -3.6% |
| Western Europe (excl. Germany) | 3,083 | 3,035 | -3.3% | -1.6% | -0.9% | 0.2% | -2.4% | -1.8% | -3.3% | -1.6% |
| Eastern Europe | 2,724 | 2,783 | -14.8% | 2.2% | -13.0% | 6.1% | -1.8% | -3.9% | -6.2% | -5.5% |
| Asia/Africa | 467 | 564 | 13.4% | 20.8% | 11.5% | 7.5% | 1.9% | 13.3% | -5.3% | 6.8% |
H1 2010 sales at Metro Cash & Carry amounted to €14.6 billion and remained unchanged year-on-year. Adjusted for currency effects, sales decreased by 2.0%. The general macroeconomic environment remained challenging in the first half of the year. Especially non-food sales continued to suffer from significant buying reticence. However, the food sales development was broadly stable and price effects contributed only moderately thereto. Customer response to the improved private label assortments continued to be very positive and the sales share of which, grew by 1.0 %-point to 12.0% in H1.
Adjusted for the shift of the Easter business, Q2 showed no material trend change compared to Q1 2010.
In Germany Germany Germany, sales in H1 2010 decreased by 3.3% to €2.5 billion. This decline reflects the store network optimisation (two closures in Q4 2009 and three in Q1 2010) as well as the realignment of the assortment structure. Especially the targeted reduction of the low-margin tobacco and telephone cards business continued further in H1 2010. Like-for-like sales adjusted for these two categories increased slightly by 0.1% in H1. Sales growth in the destination categories meat, fruit & vegetables and fresh fish was gratifying. Thanks to a more targeted customer approach, sales grew significantly in these categories. Also the Metro delivery service continued to grow dynamically. In H1, total delivered goods amounted to €57 million (H1 2009: €38 million).
The non-food focus on seasonal spot deals delivered the first positive results. However, so far these could only partly compensate the sales decline.
Sales in Q2 showed a weaker development compared to Q1 mainly due to the shift of the Easter business. Adjusted for this effect and a less favourable trading days constellation, Q2 did not materially differ from the prior quarter. In June, the Schaper integration, the re-modelling offensive (which incorporates the findings from the five concept stores), and a further store network optimisation were resolved.
Sales in Western Europe Western declined by 1.6% to €5.7 billion in H1 2010. Adjusted for currency effects, sales decreased by 1.8%. Sales in like-for-like terms came in 1.5% below prior year's level. Despite the still difficult market environment, the trend in Q2 – adjusted for the shift of the Easter business - continued to stabilise.
H1 2010 sales in Eastern Europe EuropeEurope grew by 1.1% to €5.3 billion. Adjusted for currency effects, sales declined by 4.3%. Especially non-food sales remained very challenging and were mainly responsible for the decline in like-forlike sales. Food sales developed markedly better than non-food sales. Thereby, the region shows an increasingly mixed development. Whilst countries like Greece and Hungary still reported declining sales trends in Q2, the sales trends in Russia and Ukraine improved. Overall Q2 showed a slight trend improvement.
Sales in Asia/Africa Asia/Africa in H1 2010 grew by 11.6% to €1.2 billion. All countries reported sales growth. The trend seen in Q1 2010 gained further momentum in Q2.
In H1 2010, the international share of sales increased slightly from 82.2% to 82.7%.
| H1 2009 1) | H1 2010 | Change | Q2 2009 1) | Q2 2010 | Change |
|---|---|---|---|---|---|
| 326 | 354 | 8.4% | 265 | 263 | -0.8% |
| 362 | 414 | 14.2% | 290 | 314 | 8.2% |
| 194 | 210 | 8.0% | 195 | 194 | -0.6% |
| 235 | 270 | 14.7% | 225 | 245 | 8.8% |
| 46 | 124 | - | 28 | 75 | - |
| 31/12/2009 | 30/06/2010 30/06/2010 | Change | 31/03/2010 | 30/06/2010 | Change |
| 668 | 668 | +0 | 665 | 668 | +3 |
| 5,291 | 5,317 | +26 | 5,269 | 5,317 | +48 |
| 109,632 | 108,167 108,167 108,167 | 107,602 | 108,167 108,167 | +565 | |
| -1,465 |
1) Adjustment of previous year's figures due to first-time adoption of revised IFRS
In H1 2010, EBITDA grew by €28 million to €354 million. Included therein are expenses resulting from Shape 2012, especially for the restructuring in Germany, amounting to €60 million (H1 2009: €36 million). EBITDA before special items increased to €414 million (H1 2009: €362 million).
EBIT in H1 2010 improved significantly and increase EBIT d by €16 million to €210 million. Also before special items, EBIT grew considerably and totalled €270 million compared to €235 million in H1 2009. This earnings improvement was mainly attributable to cost savings from the Shape 2012 programme. In Q2, the positive earnings trend continued.
Capex in H1 2010 for the expansion and modernisatio Capex n amounted to €124 million (H1 2009: €46 million). In this period, Metro Cash & Carry opened four stores, thereof two in China and one in Romania. Moreover, the first store in Egypt was opened. Three Schaper stores in Germany and one store in Portugal were sold respectively closed down.
As at 30 June 2010, Metro Cash & Carry operated 668 stores in 31 countries, thereof 121 in Germany, 258 in Western Europe, 211 in Eastern Europe and 78 in Asia/Africa. Additionally, Metro Cash & Carry operated for a better market coverage 17 so-called satellite concepts (e.g. Metro Drive, Makro Punkt), as branches of existing stores. These satellites are included in the selling space, but do not count as separate stores.
| Sales Sales (€ million) |
Change Change (€) |
Currency Currency Currency Change effects (local currency) |
lfl (local currency) |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| H1 2009 H1 2010 2010 | H1 2009 H1 2010 2010 | H1 2009 H1 2010 H1 2010 | H1 2009 H1 2010 2010 2010 | H1 2009 H1 2010 | |||||||
| Total Total |
5,388 | 5,507 5,507 |
-3.2% | 2.2% | -4.5% | 1.9% | 1.3% | 0.3% | 0.5% | -0.5% | |
| Germany | 4,160 | 4,043 | -1.6% | -2.8% | 0.0% | 0.0% | -1.6% | -2.8% | -0.5% | -0.9% | |
| Eastern Europe | 1,227 | 1,464 | -8.0% | 19.3% | -20.8% | 9.4% | 12.8% | 9.9% | 4.0% | 0.6% |
| Sales Sales Change Change (€ million) (€) |
Currency Currency Currency effects |
Change (local currency) |
lfl (local currency) |
|||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q2 2009 Q2 2010 2010 | Q2 2009 Q2 2010 2010 | Q2 2009 Q2 2010 Q2 2010 | Q2 2009 Q2 2010 Q2 2010 2010 | Q2 2009 Q2 2010 | ||||||
| Total Total |
2,759 | 2,762 2,762 |
-1.5% | 0.1% | -4.7% | 2.0% | 3.2% | -1.9% | 2.3% | -2.6% |
| Germany | 2,118 | 2,019 | 0.3% | -4.7% | 0.0% | 0.0% | 0.3% | -4.7% | 1.4% | -2.8% |
| Eastern Europe | 640 | 742 | -6.8% | 15.9% | -21.0% | 9.1% | 14.2% | 6.8% | 5.5% | -2.0% |
In H1 2010, sales at Real grew by 2.2% to €5.5 billion. The dynamic expansion into Eastern European growth markets and the positive currency effects contributed to this increase. Adjusted for currency effects, sales rose by 0.3%. Q2 showed thereby a weaker development than Q1 mainly because of the Easter shift.
In Germany Germany Germany, sales in H1 2010 mainly declined due to store disposals by 2.8% to €4.0 billion. Like-for-like sales decreased only slightly by 0.9%. Therewith, Real again outperformed the total hypermarket sector under still difficult market conditions. In general, both the unrelenting food price deflation, as well as the growing shift in customer demand for value-for-money private labels restrained the sales development. Q2 showed a weaker sales development than Q1 especially due to the Easter shift.
The Real webshop was launched in the middle of May and offered an initial assortment of more than 2,000 products from the six categories: Electronics & Photography, House & Garden, Babies & Toddlers, Health & Wellness, Toys, as well as Sports & Leisure.
The sales development in Eastern Europe Eastern EuropeEastern Europe continued to gain momentum in H1 2010 and increased by 19.3% to €1.5 billion. Aside from expansion, also significant positive currency effects supported this development. Nonetheless, also adjusted for currency effects, sales grew notably by 9.9%. Q2 like-for-like sales developed weaker than in Q1. The sales development in Poland was restrained by the period of national mourning, as well as by the flooding. In contrast, Real in Russia reported significant like-forlike sales growth in Q2.
The international share of sales in H1 2010 grew significantly from 22.8% to 26.6%.
| € million | H1 2009 1) | H1 2010 | Change | Q2 2009 1) | Q2 2010 | Change |
|---|---|---|---|---|---|---|
| EBITDA | 23 | 69 | - | 28 | 48 | 69.6% |
| EBITDA before special items | 23 | 69 | - | 28 | 46 | 62.6% |
| EBIT | -69 | -42 | 39.0% | -16 | -16 | 4.1% |
| EBIT before special items | -69 | -26 | 62.3% | -16 | -2 | 90.6% |
| Capex | 49 | 61 | 24.8% | 31 | 28 | -9.4% |
| 31/12/2009 | 30/06/2010 30/06/2010 | Change | 31/03/2010 | 30/06/2010 | Change | |
| Stores | 441 | 433 | -8 | 437 | 433 | -4 |
| Selling space (1,000 sqm) | 3,184 | 3,121 | -63 | 3,145 | 3,121 | -24 |
| Employees (full-time basis) | 58,616 | 56,050 | -2,566 | 57,313 | 56,050 | -1,263 |
1) Adjustment of previous year's figures due to first-time adoption of revised IFRS
In H1 2010, EBITDA increased to €69 million (H1 2009: €23 million).
EBIT in H1 2010 improved significantly by €27 milli EBIT on to €-42 million (H1 2009: €-69 million). This development is owed to both the German repositioning and the Eastern European business. Thanks to Shape 2012, Real in Germany was able to improve gross margin and reduce costs further. The positive sales development in Eastern Europe, especially in Q1, led to an earnings improvement. Before special items, EBIT increased significantly by €43 million to €-26 million (H1 2009: €-69 million). Thereby, the earnings increase in Q1 was higher than in Q2 due to the Easter shift.
Capex in H1 2010 amounted to €61 million (H1 2009: Capex €49 million). Real extended its store network in H1 by opening one hypermarket in Romania. All in all, nine unprofitable stores were sold respectively disposed of, of which stores eight were in Germany and one in Turkey.
As at 30 June 2010, the store network comprised 433 stores in six countries, thereof 325 in Germany and 108 in Eastern Europe.
| w | |
|---|---|
| Markt as k |
| Sales Sales (€ million) |
Change Change (€) |
Currency Currency Currency effects |
Change (local currency) |
lfl (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| H1 2009 H1 2010 2010 | H1 2009 H1 2010 2010 | H1 2009 H1 2010 H1 2010 | H1 2009 H1 2010 2010 2010 | H1 2009 H1 2010 | ||||||
| Total Total |
8,687 | 9,349 9,349 |
2.9% | 7.6% | -2.0% | 1.4% | 4.9% | 6.2% | -1.3% | 0.7% |
| Germany | 4,076 | 4,150 | 5.8% | 1.8% | 0.0% | 0.0% | 5.8% | 1.8% | 2.6% | 0.4% |
| Western Europe (excl. Germany) | 3,696 | 4,166 | 2.2% | 12.7% | 0.0% | 0.9% | 2.2% | 11.8% | -5.2% | 4.9% |
| Eastern Europe | 915 | 1,032 | -6.0% | 12.8% | -19.5% | 9.2% | 13.5% | 3.6% | -3.4% | -13.6% |
| Sales Sales (€ million) |
Change Change (€) |
Currency Currency Currency effects |
Change (local currency) |
lfl (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q2 2009 Q2 2010 2010 | Q2 2009 Q2 2010 2010 | Q2 2009 Q2 2010 Q2 2010 | Q2 2009 Q2 2010 Q2 2010 2010 | Q2 2009 Q2 2010 | ||||||
| Total Total |
4,048 | 4,425 4,425 |
-0.8% | 9.3% | -2.1% | 1.6% | 1.3% | 7.7% | -4.3% | 2.0% |
| Germany | 1,862 | 1,937 | -0.5% | 4.0% | 0.0% | 0.0% | -0.5% | 4.0% | -3.6% | 2.9% |
| Western Europe (excl. Germany) | 1,754 | 1,984 | 1.5% | 13.1% | 0.1% | 1.2% | 1.4% | 11.9% | -4.7% | 4.8% |
| Eastern Europe | 433 | 505 | -10.2% | 16.5% | -19.3% | 10.1% | 9.1% | 6.4% | -6.2% | -12.0% |
H1 2010 sales at Media Markt and Saturn grew by 7.6% to €9.3 billion. Adjusted for currency effects, sales increased by 6.2%. Media Markt and Saturn thereby continued its dynamic growth and further strengthened its European market leadership. Like-for-like sales grew by 0.7% in a still difficult macroeconomic environment. Thereby, thanks to the FIFA World Cup Q2 sales picked up tangibly.
In Germany GermanyGermany, sales in H1 reached a new record and came in at €4.2 billion. In like-for-like terms, sales increased by 0.4%. Bestselling items were TVs and large domestic appliances. Q2 was marked by the FIFA World Cup. Successful campaigns like "Das ist mein WM-Laden" (That's my World Cup store) in combination with innovative sales promotions delivered growth impetus, especially in typical consumer electronics. Sales in Q2 grew by 4.2% and 2.9% in like-for-like terms.
Sales in Western Europe Western Europe grew dynamically in H1 2010 by 12.7% to €4.2 billion (adjusted for currency effects: 11.8%). Besides the significant sales improvement in the highrevenue countries, Italy and Spain, all countries grew sales; with distinctly double-digit growth rates in some. Also in like-for-like terms, sales grew tangibly by 4.9%. Thus, in spite of the still challenging market environment the sales trend continued to be positive. Market share in nearly all countries was gained, significantly even in some. In Q2, particularly the contestant countries benefited from the FIFA World Cup. The pilot phase for setting up the online business started according to schedule. In Q2, the online offering in Austria went live, and in the Netherlands the online assortment was further enlarged.
In Eastern Europe Eastern EuropeEurope, sales in H1 2010 grew by 12.8% (adjusted for currency effects 3.6%). Hereby, still no growth impetus came from the macroeconomic environment. Many consumers continued to hold back purchases of big-ticket items. Sales growth was driven by positive currency effects and progressive expansion. In H1, like-forlike sales declined by 13.6%. Conversely, the expansion markets, Turkey and Russia, delivered significant like-forlike sales growth. All in all, Q2 showed a slight trend improvement against the backdrop of a very heterogeneous development in the individual countries. In particular the sales development in Poland was adversely affected by the period of national mourning, as well as by the severe flooding. In contrast, the sales development in Russia and Turkey picked up significantly. Whilst the regions Germany and Western Europe benefited from the FIFA World Cup, Eastern Europe lacked material impetuses.
The international share of sales in H1 2010 grew from 53.1% to 55.6%.
| € million | H1 2009 1) | H1 2010 | Change | Q2 2009 1) | Q2 2010 | Change |
|---|---|---|---|---|---|---|
| EBITDA | 252 | 243 | -3.4% | 113 | 103 | -8.7% |
| EBITDA before special items | 254 | 247 | -2.6% | 115 | 103 | -10.3% |
| EBIT | 131 | 118 | -10.4% | 53 | 40 | -23.9% |
| EBIT before special items | 133 | 123 | -8.0% | 55 | 41 | -24.9% |
| Capex | 138 | 113 | -18.0% | 83 | 59 | -28.4% |
| 31/12/2009 | 30/06/2010 30/06/2010 | Change | 31/03/2010 | 30/06/2010 | Change | |
| Stores | 818 | 840 | +22 | 828 | 840 | +12 |
| Selling space (1,000 sqm) | 2,633 | 2,712 | +79 | 2,669 | 2,712 | +43 |
| Employees (full-time basis) | 58,694 | 57,493 | -1,201 | 57,749 | 57,493 | -256 |
1) Adjustment of previous year's figures due to first-time adoption of revised IFRS
In H1 2010, EBITDA came in at €243 million (H1 2009: €252 million) and included special items amounting to €4 million (H1 2009: €2 million). EBIT amounted to €118 million (H1 2009: €131 million). The good gross profit development only partly compensated the increased marketing expenses and start-up costs, incurred especially in Q2. These start-up costs included expenses for the upcoming market entry into China, as well as for the set-up of the online and private label business. EBIT before special items in H1 totalled €123 million (H1 2009: €133 million).
Capex in the store network in H1 2010 amounted to € Capex 113 million (H1 2009: €138 million). Included therein are investments for the market entry into China. In H1, Media Markt and Saturn opened 23 stores, thereof three stores each in Germany, Poland and Russia, two stores each in Greece, Italy, Netherlands, Sweden and Switzerland, as well as one store each in Belgium, France, Austria and Spain. One store in Hungary was disposed of.
At the end of H1 2010, the store network of Media Markt and Saturn comprised 840 stores in 16 countries, thereof 378 in Germany, 334 in Western and 128 in Eastern Europe.
| Sales | ||||||
|---|---|---|---|---|---|---|
| (€ million) | Change | lfl | ||||
| H1 2009 H1 2010 H1 20102010 | H1 2009 H1 2010 H1 20102010 | H1 2009 H1 2010 H1 2010 | ||||
| Total Total |
1,578 | 1,584 1,584 |
-1.8% | 0.4% | -2.0% | 0.0% |
| Germany | 1,423 | 1,429 | -2.2% | 0.5% | -2.5% | 0.1% |
| Western Europe (excl. Germany) | 155 | 155 | 2.4% | -0.2% | 3.4% | -0.5% |
| Sales (€ million) |
Change | lfl | ||||
|---|---|---|---|---|---|---|
| Q2 2009 Q2 2010 Q2 2010 2010 | Q2 2009 Q2 2010 2010 | Q2 2009 Q2 2010 2010 | ||||
| Total Total |
786 | 765 765 |
0.3% | -2.6% | 0.1% | -2.7% |
| Germany | 712 | 695 | 0.4% | -2.5% | 0.0% | -2.6% |
| Western Europe (excl. Germany) | 74 | 71 | -0.5% | -3.8% | 0.4% | -4.2% |
In H1 2010, sales at Galeria Kaufhof grew by 0.4% above prior year's level to €1.6 billion. In like-for-like terms, sales were on prior year's level. Thereby, Q1 showed a better development than Q2 due to the Easter shift.
In Germany Germany Germany, sales at Galeria Kaufhof increased by 0.5% to €1.4 billion. The important and high-margin Easter business had a positive impact on Q1 in 2010, but was missing in Q2 compared to prior year. Additionally, the unusually cold weather in April and May had an adverse effect. These effects impaired the sales development of the important textile categories.
In Western Western Europe, sales were also almost on prior year's level and came in at €0.2 billion. In Q2, textile sales in this region also suffered from the cold weather and the Easter shift. Furthermore, changes in Belgian legislation regarding seasonal sales led to a revenue shift to July.
The international share of sales remained on prior year's level at 9.8%.
| € million | H1 2009 1) | H1 2010 | Change | Q2 2009 1) | Q2 2010 | Change |
|---|---|---|---|---|---|---|
| EBITDA | -18 | 14 | - | 1 | 9 | - |
| EBITDA before special items | 6 | 14 | - | 7 | 9 | 26.9% |
| EBIT | -71 | -34 | 51.7% | -25 | -15 | 38.9% |
| EBIT before special items | -46 | -34 | 25.6% | -19 | -15 | 19.9% |
| Investitionen | 24 | 19 | -23.3% | 13 | 13 | -6.5% |
| 31/12/2009 | 30/06/2010 30/06/2010 | Change | 31/03/2010 | 30/06/2010 30/06/2010 | Change | |
| Stores | 141 | 138 | -3 | 141 | 138 | -3 |
| Selling space (1,000 sqm) | 1,501 | 1,475 | -26 | 1,502 | 1,475 | -27 |
| Employees (full-time basis) | 20,048 | 18,790 | -1,258 | 19,027 | 18,790 | -237 |
1) Adjustment of previous year's figures due to first-time adoption of revised IFRS
EBITDA in H1 2010 was €14 million compared to €-18 EBITDA million last year. H1 2009 included €24 million special items. Before special items, EBITDA increased from €6 million to €14 million.
EBIT in H1 2010 increased significantly by €37 mill EBIT ion to €-34 million. H1 2009 included special items of €25 million. Excluding special items, EBIT increased by €12 million. In Q2, EBIT before special items also increased from €-19 million to €-15 million thanks to an improved cost and inventory management.
In H1 2010, capex in the store network amounted to €19 million (H1 2009: €24 million).
In Q2 2010, three department stores were closed down respectively sold on. As at 30 June 2010, the store network of Galeria Kaufhof comprised 138 stores, thereof 123 in Germany and 15 in Belgium.
In April 2010, Galeria Kaufhof won two awards from the Deutsche Dialogmarketingverband (German Marketing Dialogue Association): gold in the "Retail" category, and bronze in the "Customer loyalty" category for the "Galeria against empty wardrobes" advertising campaign.
Real Estate Real Estate
| € million | H1 2009 | H1 2010 H1 2010 | Change |
|---|---|---|---|
| EBITDA | 434 | 472 | 8.7% |
| EBITDA before special items | 437 | 473 | 8.2% |
| EBIT | 253 | 269 | 6.3% |
| EBIT before special items | 256 | 270 | 5.5% |
| Capex | 239 | 113 | -52.5% |
| 31/12/2009 | 30/06/2010 | Change | |
| Employees (full-time basis) | 1,378 | 1,319 | -59 |
| € million | Q2 2009 | Q2 2010 2010 | Change |
| EBITDA | 211 | 229 | 8.7% |
|---|---|---|---|
| EBITDA before special items | 214 | 230 | 7.6% |
| EBIT | 121 | 131 | 8.1% |
| EBIT before special items | 124 | 132 | 6.3% |
| Capex | 129 | 71 | -45.5% |
| 31/03/2010 | 30/06/2010 | Change | |
| Employees (full-time basis) | 1,349 | 1,319 | -30 |
| € million | H1 2009 | H1 2010 H1 | Change |
|---|---|---|---|
| Sales | 209 | 135 | -35.4% |
| EBITDA | -63 | -100 | -60.3% |
| EBITDA before special items | -34 | -82 | - |
| EBIT | -137 | -147 | -7.5% |
| EBIT before special items | -107 | -129 | -20.8% |
| Capex | 60 | 24 | -60.0% |
| 31/12/2009 | 30/06/2010 30/06/2010 | Change | |
| Employees (full-time basis) | 8,606 | 7,331 | -1,275 |
| € million | Q2 2009 | Q2 2010 Q2 2010 | Change |
|---|---|---|---|
| Sales | 95 | 58 | -39.1% |
| EBITDA | -40 | -50 | -23.2% |
| EBITDA before special items | -14 | -36 | - |
| EBIT | -77 | -76 | 2.2% |
| EBIT before special items | -50 | -62 | -22.4% |
| Capex | 26 | 16 | -38.9% |
| 31/03/2010 | 30/06/2010 30/06/2010 | Change | |
| Employees (full-time basis) | 7,585 | 7,331 | -254 |
The segment Real Estate comprises all METRO GROUP's real estate assets, as well as all real estate-related services.
The real estate management actively contributes to METRO GROUP's value creation. The international expansion, the active asset- and portfolio management, as well as the optimised resource deployment are to secure and systematically enhance the value of the real estate in the long run.
In H1 2010, EBITDA increased from €434 million to €472 million and included special items amounting to €1 million (H1 2009: €3 million). Before special items EBITDA grew from €437 million to €473 million. These earnings mainly constitute rental income paid by METRO GROUP's divisions. EBIT was €269 million compared to €253 million in the prior year. Before special items, EBIT increased from €256 million to €270 million. The earnings improvement reflects in particular the incremental rental income resulting from Metro Cash & Carry's expansion.
The segment Other comprises aside from METRO GROUP's strategic management holding, METRO AG, amongst others, the procurement organisation in Hong Kong, which also operates for third parties, as well as the logistics services and restaurant business.
In H1 2010, sales in the segment Other were €135 million (H1 2009: €209 million). The significant sales decline is also due to the divestment of the operational business of AXXE Reisegastronomie, the disposal of Grillpfanne restaurants, as well as the decline in procurement volume for third parties.
EBIT before special items declined to €-129 million EBIT in H1 2010. Within the scope of Shape 2012, €18 million were expensed for optimisation measures at the crossdivisional service companies and at METRO AG. The EBIT decline resulted mainly from one-off expenses relating to the reduction of METRO AG's Management Board in Q1 2010, and higher expenses for governance-relevant functions. In addition, earnings in Q2 2010 included increased mandatory contributions to the Pensionsicherungsverein PSV (mutual pension assurance association), and expenses related to the closure of the Grillpfanne business.
| Metro Cash & Carry |
Real Real |
Media Markt Media Markt and Saturn |
Galeria Kaufhof | Other Other |
METRO GROUP METRO GROUP |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q2 | H1 | 30/06/10 30/06/1030/06/10 | Q2 | H1 | 30/06/10 30/06/10 30/06/10 | Q2 | H1 | 30/06/10 30/06/1030/06/10 | Q2 | H1 | 30/06/10 30/06/1030/06/10 | Q2 | H1 | 30/06/10 30/06/1030/06/10 | Q2 | H1 | 30/06/10 30/06/10 | |
| Germany Germany |
-3 -3 |
121 | -4 | -8 | 325 | +2 | +3 | 378 | -3 | -3 | 123 | -20 | -26 | 33 | -25 | -37 | 980 | |
| Austria | 12 | +1 | 35 | +1 | 47 | |||||||||||||
| Belgium | 11 | +1 | 19 | 15 | +1 | 45 | ||||||||||||
| Denmark | 5 | 5 | ||||||||||||||||
| France | 91 | +1 | +1 | 33 | +1 | +1 | 124 | |||||||||||
| Italy | 48 | +1 | +2 | 101 | +1 | +2 | 149 | |||||||||||
| Luxemburg | 1 | 1 | ||||||||||||||||
| Netherlands | 17 | +1 | +2 | 34 | +1 | +2 | 51 | |||||||||||
| Portugal | -1 | 10 | 9 | -1 | 19 | |||||||||||||
| Spain | 34 | +1 | +1 | 62 | +1 | +1 | 96 | |||||||||||
| Sweden | +1 | +2 | 18 | +1 | +2 | 18 | ||||||||||||
| Switzerland | +2 | +2 | 22 | +2 | +2 | 22 | ||||||||||||
| United Kingdom | 30 | 30 | ||||||||||||||||
| Western Europe Europe |
-1 -1 |
258 | +7 | +12 | 334 | 15 | +7 | +11 | 607 | |||||||||
| Bulgaria | 11 | 11 | ||||||||||||||||
| Croatia | 6 | 6 | ||||||||||||||||
| Czech Republic | 13 | 13 | ||||||||||||||||
| Greece | 9 | +2 | 12 | +2 | 21 | |||||||||||||
| Hungary | 13 | -1 | -1 | 21 | -1 | -1 | 34 | |||||||||||
| Kazakhstan | 1 | 1 | ||||||||||||||||
| Moldova | 3 | 3 | ||||||||||||||||
| Poland | 29 | 54 | +2 | +3 | 56 | +2 | +3 | 139 | ||||||||||
| Romania | +1 | +1 | 25 | +1 | +1 | 25 | +2 | +2 | 50 | |||||||||
| Russia | 52 | 15 | +2 | +3 | 23 | +2 | +3 | 90 | ||||||||||
| Serbia | 5 | 5 | ||||||||||||||||
| Slovakia | 5 | 5 | ||||||||||||||||
| Turkey | 14 | -1 | -1 | 13 | 16 | -1 | -1 | 43 | ||||||||||
| Ukraine | 25 | 1 | 26 | |||||||||||||||
| Eastern Europe Europe |
+1 +1 |
+1 | 211 | 108 | +3 | +7 | 128 | +4 | +8 | 447 | ||||||||
| China | +1 | +2 | 44 | +1 | +2 | 44 | ||||||||||||
| Egypt | +1 | +1 | +1 | +1 | +1 | +1 | ||||||||||||
| India | 5 | 5 | ||||||||||||||||
| Japan | 6 | 6 | ||||||||||||||||
| Morocco | 8 | 8 | ||||||||||||||||
| Pakistan | 5 | 5 | ||||||||||||||||
| Vietnam | 9 | 9 | ||||||||||||||||
| Asia/Africa Asia/Africa |
+2 +2 |
+3 | 78 | +2 | +3 | 78 | ||||||||||||
| Total Total |
+3 +3 |
668 | -4 | -8 | 433 | +12 | +22 | 840 | -3 | -3 | 138 | -20 | -26 | 33 | -12 | -15 | 2,112 |
| As reported | Special items | Before special items | ||||
|---|---|---|---|---|---|---|
| € million | H1 2009 1) | H1 2010 2010 |
H1 2009 | H1 2010 H1 2010 |
H1 2009 1) | H1 2010 |
| EBITDA | 955 | 1,048 | 94 | 84 | 1,049 | 1,132 |
| thereof Metro Cash & Carry | 326 | 354 | 36 | 60 | 362 | 414 |
| Real | 23 | 69 | 0 | 0 | 23 | 69 |
| Media Markt and Saturn | 252 | 243 | 2 | 4 | 254 | 247 |
| Galeria Kaufhof | -18 | 14 | 24 | 0 | 6 | 14 |
| Real estate | 434 | 472 | 3 | 1 | 437 | 473 |
| Other | -63 | -100 | 29 | 18 | -34 | -82 |
| Consolidation | 0 | -4 | 0 | 1 | 0 | -3 |
| EBIT | 302 | 369 | 101 | 101 | 403 | 470 |
| thereof Metro Cash & Carry | 194 | 210 | 41 | 60 | 235 | 270 |
| Real | -69 | -42 | 0 | 16 | -69 | -26 |
| Media Markt and Saturn | 131 | 118 | 2 | 5 | 133 | 123 |
| Galeria Kaufhof | -71 | -34 | 25 | 0 | -46 | -34 |
| Real estate | 253 | 269 | 3 | 1 | 256 | 270 |
| Other | -137 | -147 | 30 | 18 | -107 | -129 |
| Consolidation | 0 | -4 | 0 | 1 | 0 | -3 |
| EBT | -13 | 92 | 101 | 101 | 88 | 193 |
| Earnings per share (€) | -0.14 | 0.08 | 0.20 | 0.21 | 0.06 | 0.29 |
1) Adjustment of previous year's figures due to first-time adoption of revised IFRS
| As reported | Special items | Before special items | |||||
|---|---|---|---|---|---|---|---|
| € million | H1 2009 1) | H1 2010 2010 |
H1 2009 | H1 H1 2010 |
H1 2009 1) | H1 2010 | |
| EBITDA | 955 | 1,048 | 94 | 84 | 1,049 | 1,132 | |
| thereof Germany | 281 | 243 | 68 | 73 | 349 | 316 | |
| Western Europe (excl. Germany) | 274 | 345 | 20 | 10 | 294 | 355 | |
| Eastern Europe | 402 | 444 | 4 | 5 | 406 | 449 | |
| Asia/Africa | -5 | 12 | 2 | -4 | -3 | 8 | |
| Consolidation | 4 | 5 | 0 | 0 | 4 | 5 | |
| EBIT | 302 | 369 | 101 | 101 | 403 | 470 | |
| thereof Germany | -46 | -97 | 70 | 89 | 24 | -8 | |
| Western Europe (excl. Germany) | 118 | 203 | 25 | 10 | 143 | 213 | |
| Eastern Europe | 249 | 266 | 4 | 6 | 253 | 272 | |
| Asia/Africa | -23 | -9 | 2 | -4 | -21 | -13 | |
| Consolidation | 4 | 5 | 0 | 0 | 4 | 5 | |
| EBT | -13 | 92 | 101 | 101 | 88 | 193 | |
| Earnings per share (€) | -0.14 | 0.08 | 0.20 | 0.21 | 0.06 | 0.29 | |
1) Adjustment of previous year's figures due to first-time adoption of revised IFRS
| As reported Special items |
Before special items | |||||
|---|---|---|---|---|---|---|
| € million | Q2 2009 1) | Q2 2010 2010 |
Q2 2009 | Q2 2010 Q2 2010 |
Q2 2009 1) | Q2 2010 |
| EBITDA | 576 | 595 | 62 | 65 | 638 | 660 |
| thereof Metro Cash & Carry | 265 | 263 | 25 | 51 | 290 | 314 |
| Real | 28 | 48 | 0 | -2 | 28 | 46 |
| Media Markt and Saturn | 113 | 103 | 2 | 0 | 115 | 103 |
| Galeria Kaufhof | 1 | 9 | 6 | 0 | 7 | 9 |
| Real estate | 211 | 229 | 3 | 1 | 214 | 230 |
| Other | -40 | -50 | 26 | 14 | -14 | -36 |
| Consolidation | -2 | -7 | 0 | 1 | -2 | -6 |
| EBIT | 248 | 252 | 68 | 82 | 316 | 334 |
| thereof Metro Cash & Carry | 195 | 194 | 30 | 51 | 225 | 245 |
| Real | -16 | -16 | 0 | 14 | -16 | -2 |
| Media Markt and Saturn | 53 | 40 | 2 | 1 | 55 | 41 |
| Galeria Kaufhof | -25 | -15 | 6 | 0 | -19 | -15 |
| Real estate | 121 | 131 | 3 | 1 | 124 | 132 |
| Other | -77 | -76 | 27 | 14 | -50 | -62 |
| Consolidation | -3 | -7 | 0 | 1 | -3 | -6 |
| EBT | 105 | 88 | 68 | 82 | 173 | 170 |
| Earnings per share (€) | 0.16 | 0.13 | 0.13 | 0.17 | 0.29 | 0.30 |
1) Adjustment of previous year's figures due to first-time adoption of revised IFRS
| As reported | Special items | Before special items | |||||
|---|---|---|---|---|---|---|---|
| € million | Q2 2009 1) | Q2 2010 2010 |
Q2 2009 | Q2 2010 Q2 2010 |
Q2 2009 1) | Q2 2010 | |
| EBITDA | 576 | 595 | 62 | 65 | 638 | 660 | |
| thereof Germany | 169 | 132 | 40 | 63 | 209 | 195 | |
| Western Europe (excl. Germany) | 178 | 201 | 18 | 2 | 196 | 203 | |
| Eastern Europe | 234 | 265 | 2 | 5 | 236 | 270 | |
| Asia/Africa | -5 | -1 | 2 | -5 | -3 | -6 | |
| Consolidation | 0 | -2 | 0 | 0 | 0 | -2 | |
| EBIT | 248 | 252 | 68 | 82 | 316 | 334 | |
| thereof Germany | 7 | -42 | 41 | 79 | 48 | 37 | |
| Western Europe (excl. Germany) | 97 | 132 | 23 | 3 | 120 | 135 | |
| Eastern Europe | 157 | 175 | 2 | 5 | 159 | 180 | |
| Asia/Africa | -14 | -12 | 2 | -5 | -12 | -17 | |
| Consolidation | 0 | -2 | 0 | 0 | 0 | -2 | |
| EBT | 105 | 88 | 68 | 82 | 173 | 170 | |
| Earnings per share (€) | 0.16 | 0.13 | 0.13 | 0.17 | 0.29 | 0.30 | |
1) Adjustment of previous year's figures due to first-time adoption of revised IFRS
| € million | H1 2009 1) | H1 2010 | Q2 2009 1) | Q2 2010 |
|---|---|---|---|---|
| Net sales | 30,505 | 31,223 | 15,338 | 15,706 |
| Cost of sales | -24,198 | -24,700 -24,700 | -12,145 | -12,393 -12,393 |
| Gross profit on sales | 6,307 | 6,523 | 3,193 | 3,313 |
| Other operating income | 584 | 619 | 306 | 330 |
| Selling expenses | -5,818 | -5,985 | -2,848 | -2,978 |
| General administrative expenses | -748 | -767 | -390 | -405 |
| Other operating expenses | -23 | -21 | -13 | -8 |
| EBIT | 302 | 369 | 248 | 252 |
| Result from associated companies | 0 | 0 | 0 | 0 |
| Other investment result | 3 | 0 | 3 | 0 |
| Interest income | 72 | 52 | 30 | 24 |
| Interest expenses | -319 | -342 | -162 | -171 |
| Other financial result | -71 | 13 | -14 | -17 |
| Net financial result | -315 | -277 | -143 | -164 |
| EBT | -13 | 92 | 105 | 88 |
| Income taxes | 5 | -33 | -38 | -32 |
| Net profit for the period | -8 | 59 | 67 | 56 |
| Profit attributable to non-controlling interests | 38 | 32 | 15 | 12 |
| Profit attributable to shareholder of METRO AG | -46 | 27 | 52 | 44 |
| Earnings per share (€) | -0.14 | 0.08 | 0.16 | 0.13 |
1) Adjustment of previous year's figures due to first-time adoption of revised IFRS as well as a change in disclosure
| € million | H1 2009 1) | H1 2010 | Q2 2009 1) | Q2 2010 |
|---|---|---|---|---|
| Net profit for the period | -8 | 59 | 67 | 56 |
| Other comprehensive income | 0 | 0 | 0 | 0 |
| Changes in revaluation surplus related to non-current assets |
0 | 0 | 0 | 0 |
| Actuarial gains and losses | 0 | 0 | 0 | 0 |
| Exchange differences arising from translating the financial statements of foreign operations |
-89 | 237 | 75 | 46 |
| Effective portion of gains and losses arising from cash flow hedges |
-4 | 18 | 2 | 16 |
| Gains and losses on remeasuring "available-for-sale" financial instruments |
0 | 0 | 0 | 0 |
| Income taxes related to the components of "other comprehensive income" |
3 | -21 | 1 | -11 |
| Total comprehensive income | -98 | 293 | 145 | 107 |
| allocable to non-controlling interests | 34 | 43 | 20 | 17 |
| allocable to shareholders of METRO AG | -132 | 250 | 125 | 90 |
1) Adjustment of previous year's figures due to first-time adoption of revised IFRS
| Assets | 31/12/2009 1) | 30/06/2009 2) | 30/06/2010 |
|---|---|---|---|
| € million | |||
| Non-current assets | 18,464 | 18,699 | 18,695 |
| Goodwill | 3,992 | 3,965 | 3,998 |
| Other intangible assets | 497 | 552 | 456 |
| Tangible assets | 12,244 | 12,233 | 12,446 |
| Investment properties | 129 | 126 | 167 |
| Financial assets | 113 | 163 | 108 |
| Other receivables and assets | 463 | 467 | 490 |
| Deferred tax assets | 1,026 | 1,193 | 1,030 |
| Current assets | 14,818 | 11,304 | 12,116 |
| Inventories | 7,110 | 6,497 | 6,831 |
| Trade receivables | 539 | 387 | 471 |
| Financial assets | 38 | 5 | 38 |
| Other receivables and assets | 2,613 | 2,181 | 2,379 |
| Entitlements to income tax refunds | 405 | 369 | 621 |
| Cash and cash equivalents | 3,996 | 1,751 | 1,741 |
| Assets held for sale | 117 | 114 | 35 |
| 33,282 | 30,003 | 30,811 | |
| Equity and Liabilities € million |
31/12/2009 1) | 30/06/2009 2) | 30/06/2010 |
| Equity | 5,992 | 5,541 | 5,811 |
| Share capital | 835 | 835 | 835 |
| Capital reserve | 2,544 | 2,544 | 2,544 |
| Reserves retained from earnings | 2,375 | 1,910 | 2,196 |
| Non-controlling interests | 238 | 252 | 236 |
| Non-current liabilities | 9,106 | 8,715 | 8,824 |
| Provisions for pensions and similar commitments | 978 | 966 | 992 |
| Other provisions | 502 | 486 | 512 |
| Financial liabilities | 6,743 | 6,418 | 6,418 |
| Other liabilities | 667 | 627 | 680 |
| Deferred tax liabilities | 216 | 218 | 222 |
| Current liabilities | 18,184 | 15,747 | 16,176 |
| Trade payables | 13,667 | 9,346 | 9,799 |
| Provisions | 561 | 504 | 500 |
| Financial liabilities | 1,491 | 3,777 | 3,634 |
| Other liabilities | 2,200 | 1,928 | 2,082 |
| Income tax liabilities | 265 | 192 | 161 |
| Liabilities related to assets held for sale | 0 | 0 | 0 |
1) Adjustment of previous year's figures due to a change in disclosure
2) Adjustment of previous year's figures due to first-time adoption of revised IFRS as well as a change in disclosure
33,282 30,003 30,811
| € million | H1 2009 1) | H1 2010 |
|---|---|---|
| EBIT | 302 | 369 |
| Depreciation of tangible and other intangible assets | 654 | 680 |
| Change in provisions for pensions and other provisions | -65 | -39 |
| Change in net working capital | -3,064 | -3,379 |
| Income taxes paid | -312 | -427 |
| Other | -268 | -284 |
| Total cash flow from operating activities of continuing operations | -2,753 | -3,080 |
| Total cash flow from operating activities of discontinued operations | -18 | 0 |
| Total cash flow from operating activities | -2,771 | -3,080 |
| First-time acquisition | -8 | 0 |
| Investments in tangible assets (excl. finance leases) | -444 | -303 |
| Other investments | -96 | -86 |
| Divestment of Adler | -34 | 0 |
| Disposals of fixed assets | 150 | 234 |
| Total cash flow from investing activities | -432 | -155 |
| Profit distribution | ||
| to METRO AG shareholders | -386 | -386 |
| to non-controlling interests | -30 | -48 |
| Changes of financial liabilities | 1,786 | 1,651 |
| Interest paid | -314 | -334 |
| Interest received | 66 | 45 |
| Profit and loss transfers and other financing activities | -33 | 38 |
| Cash outflow from financing activities of discontinued operations | -39 | 0 |
| Total cash flow from financing activities of continuing operations | 1,050 | 966 |
| Total cash flow from financing activities of discontinued operations | 36 | 0 |
| Total cash flow from financing activities | 1,086 | 966 |
| Total cash flows | -2,117 | -2,269 |
| Exchange rate effects on cash and cash equivalents | -7 | 14 |
| Change in cash and cash equivalents due to the first-time consolidation of companies | 1 | 0 |
| Total change in cash and cash equivalents | -2,123 | -2,255 |
| Cash and cash equivalents on 1 January | 3,874 | 3,996 |
| Cash and cash equivalents on 30 June | 1,751 | 1,741 |
1) Adjustment of previous year's figures due to first-time adoption of revised IFRS as well as a change in disclosure
| Effective | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| portion | Exchange | |||||||||||
| of gains | differences | |||||||||||
| and | arising from | Income taxes | ||||||||||
| losses | translating the | related to the | Other | related to | related to | |||||||
| arising | financial | components of | reserves | Reserves | "other | Non | "other | |||||
| from cash | statements of | "other | retained | retained | compre | con | compre | |||||
| Capital | Capital | flow | foreign | comprehensive | from | from | hensive | trolling | hensive | Total | ||
| € million | Stock | Reserve | hedges | operations | income" | earnings | earnings earnings |
Total | income" | interests | income" | equity |
| 01/01/2009 | 835 | 2,544 | 57 | -365 | 1 | 2,735 | 2,428 | 5,807 | - | 254 | - | 6,061 |
| Dividends | 0 | 0 | 0 | 0 | 0 | -386 | -386 | -386 | - | -30 | - | -416 |
| Total comprehensive income | 0 | 0 | -4 | -85 | 3 | -46 | -132 | -132 | 86 | 34 | -4 | -98 |
| Other transactions with owners | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | -6 | - | -6 |
| 30/06/2009 | 835 | 2,544 | 53 | -450 | 4 | 2,303 | 1,910 | 5,289 | - | 252 | - | 5,541 |
| 01/01/2010 | 835 | 2,544 | 67 | -440 | 17 | 2,731 | 2,375 | 5,754 | - | 238 | - | 5,992 |
| Dividends | 0 | 0 | 0 | 0 | 0 | -386 | -386 | -386 | - | -48 | - | -434 |
| Total comprehensive income | 0 | 0 | 18 | 226 | -21 | 27 | 250 | 250 | 223 | 43 | 11 | 293 |
| Changes in IAS 17 2) | 0 | 0 | 0 | 0 | 0 | -41 | -41 | -41 | - | - | - | -41 |
| Other changes | 0 | 0 | 0 | 0 | 0 | -2 | -2 | -2 | - | 3 | - | 1 |
| 30/06/2010 | 835 | 2,544 | 85 | -214 | -4 | 2,329 | 2,196 | 5,575 | - | 236 | - | 5,811 |
1) Adjustment of previous year's figures due to first-time adoption of revised IFRS
2) Changed presentation due to first-time adoption of revised IFRS
NOTES
| Divisions | ||
|---|---|---|
| Metro | Media Markt | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Carry | Real | and Saturn | Galeria Kaufhof | Real Estate | Other | Consolidation | METRO GROUP | |||||||||
| € million | H1 2009 H1 2010 2010 | H1 2009 H1 2010 2010 | H1 2009 H1 2010 2010 | H1 2009 H1 2010 2010 | H1 2009 H1 2010 2010 | H1 2009 H1 2010 2010 2010 H1 2009 H1 2010 H1 2010 | H1 2009 H1 2010 H1 | |||||||||
| External sales (net) | 14,643 | 14,648 | 5,388 | 5,507 | 8,687 | 9,349 | 1,578 | 1,584 | 0 | 0 | 209 | 135 | 0 | 0 | 30,505 | 31,223 |
| Internal sales (net) | 4 | 9 | 1 | 0 | 0 | 0 | 3 | 0 | 0 | 0 | 2,813 | 2,886 | -2,820 | -2,895 | 0 | 0 |
| Total sales (net) | 14,647 | 14,657 | 5,388 | 5,507 | 8,687 | 9,349 | 1,581 | 1,584 | 0 | 0 | 3,022 | 3,021 | -2,820 | -2,895 | 30,505 | 31,223 |
| EBITDA | 326 | 354 | 23 | 69 | 252 | 243 | -18 | 14 | 434 | 472 | -63 | -100 | 0 | -4 | 955 | 1,048 |
| Depreciation/amortisation | 132 | 144 | 92 | 111 | 121 | 126 | 54 | 49 | 181 | 203 | 74 | 47 | 0 | 0 | 654 | 680 |
| EBIT | 194 | 210 | -69 | -42 | 131 | 118 | -71 | -34 | 253 | 269 | -137 | -147 | 0 | -4 | 302 | 369 |
| Investments | 46 | 124 | 49 | 61 | 138 | 113 | 24 | 19 | 239 | 113 | 60 | 24 | 0 | 0 | 556 | 454 |
| Segment assets | 6,885 | 7,080 | 3,551 | 3,701 | 4,788 | 5,417 | 1,063 | 969 | 8,603 | 8,776 | 1,792 | 1,366 | -815 | -642 | 25,868 | 26,667 |
| thereof long-term | 3,616 | 3,817 | 2,438 | 2,473 | 1,644 | 1,721 | 497 | 447 | 8,478 | 8,655 | 710 | 487 | -162 | -150 | 17,221 | 17,451 |
| Segment liabilities | 5,150 | 5,048 | 1,770 | 1,698 | 4,218 | 4,949 | 1,079 | 792 | 554 | 503 | 1,429 | 1,831 | -958 | -878 | 13,242 | 13,943 |
| Selling space (in 1,000 sqm) |
5,242 | 5,317 | 3,160 | 3,121 | 2,512 | 2,712 | 1,497 | 1,475 | 0 | 0 | 48 | 13 | 0 | 0 | 12,458 | 12,637 |
| Stores (number) | 659 | 668 | 440 | 433 | 787 | 840 | 141 | 138 | 0 | 0 | 101 | 33 | 0 | 0 | 2,128 | 2,112 |
| Germany | Western Europe excl. Germany |
Eastern Europe | Asia/Africa | International | Consolidation | METRO GROUP | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| € million | H1 2009 H1 2010 2010 | H1 2009 H1 2010 2010 | H1 2009 H1 2010 2010 | H1 2009 H1 2010 2010 | H1 2009 H1 2010 2010 | H1 2009 H1 2010 2010 2010 H1 2009 H1 2010 H1 | ||||||||
| External sales (net) | 12,353 | 12,179 | 9,600 | 9,980 | 7,346 | 7,755 | 1,206 | 1,309 | 18,152 | 19,044 | 0 | 0 | 30,505 | 31,223 |
| Internal sales (net) | 8 | 13 | 3 | 9 | 0 | 0 | 300 | 248 | 303 | 256 | -311 | -269 | 0 | 0 |
| Total sales (net) | 12,361 | 12,191 | 9,603 | 9,989 | 7,346 | 7,755 | 1,506 | 1,557 | 18,455 | 19,301 | -311 | -269 | 30,505 | 31,223 |
| EBITDA | 281 | 243 | 274 | 345 | 402 | 444 | -5 | 12 | 671 | 801 | 4 | 5 | 955 | 1,048 |
| Depreciation/amortisation | 327 | 340 | 156 | 142 | 153 | 178 | 18 | 21 | 327 | 340 | 0 | 0 | 654 | 680 |
| EBIT | -46 | -97 | 118 | 203 | 249 | 266 | -23 | -9 | 344 | 461 | 4 | 5 | 302 | 369 |
| Investments | 235 | 202 | 75 | 70 | 217 | 146 | 28 | 36 | 321 | 252 | 0 | 0 | 556 | 454 |
| Segment assets | 11,282 | 11,078 | 7,231 | 7,406 | 6,674 | 7,263 | 1,133 | 1,394 | 15,038 | 16,063 | -453 | -475 | 25,868 | 26,667 |
| thereof long-term | 7,155 | 6,760 | 4,362 | 4,323 | 4,932 | 5,384 | 779 | 989 | 10,073 | 10,697 | -7 | -6 | 17,221 | 17,451 |
| Segment liabilities | 6,047 | 6,196 | 4,281 | 4,662 | 2,848 | 2,848 | 419 | 520 | 7,548 | 8,029 | -353 | -282 | 13,242 | 13,943 |
| Selling space (in 1,000 sqm) |
6,059 | 5,910 | 2,949 | 3,028 | 2,962 | 3,153 | 488 | 546 | 6,399 | 6,727 | 0 | 0 | 12,458 | 12,637 |
| Stores (number) | 1,065 | 980 | 583 | 607 | 412 | 447 | 68 | 78 | 1,063 | 1,132 | 0 | 0 | 2,128 | 2,112 |
| € million | H1 2009 H1 2010 | |
|---|---|---|
| External sales (net) | 50 | 0 |
| Internal sales (net) | 0 | 0 |
| Total sales (net) | 50 | 0 |
| EBITDA | -1 | 0 |
| Depreciation/amortisation | 0 | 0 |
| EBIT | -1 | 0 |
| Investments | 1 | 0 |
| Segment assets | 0 | 0 |
| thereof long-term | 0 | 0 |
| Segment liabilities | 0 | 0 |
| Selling space (in 1,000 sqm) |
0 | 0 |
| Stores (number) | 0 | 0 |
1) Adjustment of previous year's figures due to first-time adoption of revised IFRS as well as a change in disclosure
Divisions
| Metro | Media Markt | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Carry | Real | and Saturn | Galeria Kaufhof | Real Estate | Other | Consolidation | METRO GROUP | |||||||||
| € million | Q2 2009 Q2 2010 Q2 2010 | Q2 2009 Q2 2010 Q2 2010 | Q2 2009 Q2 2010 Q2 2010 | Q2 2009 Q2 2010 Q2 2010 | Q2 2009 Q2 2010 Q2 2010 2010 | Q2 2009 Q2 2010 2010 2010 | Q2 2009 Q2 2010 2010 2010 | Q2 2009 Q2 2010 2010 | ||||||||
| External sales (net) | 7,650 | 7,697 | 2,759 | 2,762 | 4,048 | 4,425 | 786 | 765 | 0 | 0 | 95 | 58 | 0 | 0 | 15,338 | 15,706 |
| Internal sales (net) | 2 | 3 | 0 | 0 | 0 | 0 | 2 | 0 | 0 | 0 | 1,440 | 1,467 | -1,443 | -1,471 | 0 | 0 |
| Total sales (net) | 7,652 | 7,700 | 2,759 | 2,762 | 4,048 | 4,425 | 788 | 765 | 0 | 0 | 1,534 | 1,525 | -1,443 | -1,471 | 15,338 | 15,706 |
| EBITDA | 265 | 263 | 28 | 48 | 113 | 103 | 1 | 9 | 211 | 229 | -40 | -50 | -2 | -7 | 576 | 595 |
| Depreciation/amortisation | 70 | 69 | 44 | 63 | 61 | 63 | 26 | 24 | 89 | 98 | 37 | 26 | 0 | 0 | 328 | 343 |
| EBIT | 195 | 194 | -16 | -16 | 53 | 40 | -25 | -15 | 121 | 131 | -77 | -76 | -3 | -7 | 248 | 252 |
| Investments | 28 | 75 | 31 | 28 | 83 | 59 | 13 | 13 | 129 | 71 | 26 | 16 | 0 | 0 | 310 | 262 |
| Segment assets | 6,885 | 7,080 | 3,551 | 3,701 | 4,788 | 5,417 | 1,063 | 969 | 8,603 | 8,776 | 1,792 | 1,366 | -815 | -642 | 25,868 | 26,667 |
| thereof long-term | 3,616 | 3,817 | 2,438 | 2,473 | 1,644 | 1,721 | 497 | 447 | 8,478 | 8,655 | 710 | 487 | -162 | -150 | 17,221 | 17,451 |
| Segment liabilities | 5,150 | 5,048 | 1,770 | 1,698 | 4,218 | 4,949 | 1,079 | 792 | 554 | 503 | 1,429 | 1,831 | -958 | -878 | 13,242 | 13,943 |
| Selling space (in 1,000 sqm) |
5,242 | 5,317 | 3,160 | 3,121 | 2,512 | 2,712 | 1,497 | 1,475 | 0 | 0 | 48 | 13 | 0 | 0 | 12,458 | 12,637 |
| Stores (number) | 659 | 668 | 440 | 433 | 787 | 840 | 141 | 138 | 0 | 0 | 101 | 33 | 0 | 0 | 2,128 | 2,112 |
| Western Europe | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Germany | excl. Germany | Eastern Europe | Asia/Africa | International | Consolidation | METRO GROUP | ||||||||
| € million | Q2 2009 Q2 2010 Q2 2010 | Q2 2009 Q2 2010 Q2 2010 | Q2 2009 Q2 2010 Q2 2010 | Q2 2009 Q2 2010 Q2 2010 | Q2 2009 Q2 2010 Q2 2010 2010 | Q2 2009 Q2 2010 2010 2010 | Q2 2009 Q2 2010 2010 | |||||||
| External sales (net) | 6,114 | 5,980 | 4,910 | 5,089 | 3,797 | 4,030 | 517 | 607 | 9,225 | 9,726 | 0 | 0 | 15,338 | 15,706 |
| Internal sales (net) | 4 | 6 | 1 | 3 | 0 | 0 | 126 | 108 | 128 | 112 | -132 | -118 | 0 | 0 |
| Total sales (net) | 6,118 | 5,986 | 4,911 | 5,093 | 3,797 | 4,030 | 644 | 715 | 9,352 | 9,838 | -132 | -118 | 15,338 | 15,706 |
| EBITDA | 169 | 132 | 178 | 201 | 234 | 265 | -5 | -1 | 407 | 464 | 0 | -2 | 576 | 595 |
| Depreciation/amortisation | 161 | 174 | 81 | 69 | 77 | 90 | 9 | 11 | 167 | 169 | 0 | 0 | 328 | 343 |
| EBIT | 7 | -42 | 97 | 132 | 157 | 175 | -14 | -12 | 240 | 295 | 0 | -2 | 248 | 252 |
| Investments | 144 | 92 | 40 | 40 | 116 | 102 | 10 | 27 | 166 | 169 | 0 | 0 | 310 | 262 |
| Segment assets | 11,282 | 11,078 | 7,231 | 7,406 | 6,674 | 7,263 | 1,133 | 1,394 | 15,038 | 16,063 | -453 | -475 | 25,868 | 26,667 |
| thereof long-term | 7,155 | 6,760 | 4,362 | 4,323 | 4,932 | 5,384 | 779 | 989 | 10,073 | 10,697 | -7 | -6 | 17,221 | 17,451 |
| Segment liabilities | 6,047 | 6,196 | 4,281 | 4,662 | 2,848 | 2,848 | 419 | 520 | 7,548 | 8,029 | -353 | -282 | 13,242 | 13,943 |
| Selling space (in 1,000 sqm) |
6,059 | 5,910 | 2,949 | 3,028 | 2,962 | 3,153 | 488 | 546 | 6,399 | 6,727 | 0 | 0 | 12,458 | 12,637 |
| Stores (number) | 1,065 | 980 | 583 | 607 | 412 | 447 | 68 | 78 | 1,063 | 1,132 | 0 | 0 | 2,128 | 2,112 |
| € million | Q2 2009 Q2 2010 Q2 | |
|---|---|---|
| External sales (net) | 0 | 0 |
| Internal sales (net) | 0 | 0 |
| Total sales (net) | 0 | 0 |
| EBITDA | 0 | 0 |
| Depreciation/amortisation | 0 | 0 |
| EBIT | 0 | 0 |
| Investments | 0 | 0 |
| Segment assets | 0 | 0 |
| thereof long-term | 0 | 0 |
| Segment liabilities | 0 | 0 |
| Selling space (in 1,000 sqm) |
0 | 0 |
| Stores (number) | 0 | 0 |
1) Adjustment of previous year's figures due to first-time adoption of revised IFRS as well as a change in disclosure
These interim consolidated financial statements as at 30 June 2010 have been prepared in accordance with International Accounting Standard (IAS) 34 ("Interim Financial Reporting"), which regulates interim financial reporting under the International Financial Reporting Standards (IFRS). As a condensed interim report, it does not contain all the information required by IFRS for annual consolidated financial statements. These interim consolidated financial statements are not audited, but they have been subject to an auditor's review in accordance with § 37w Section 5 WpHG (German Securities Trading Act).
With the exception of new or revised standards and interpretations, the same recognition and measurement principles have been applied as in the last consolidated financial statements as at 31 December 2009. More information regarding the recognition and measurement principles applied can be found in the notes to the annual consolidated financial statements as at 31 December 2009 (see Annual Report 2009, pages 140-152).
In preparing these interim consolidated financial statements, several standards and interpretations revised by the International Accounting Standards Board (IASB) have been applied, which had been adopted by the European Union. These were only the following standards and interpretations already applied and explained in the interim consolidated financial statements as at 31 March 2010, as there have been no new revisions in Q2 2010 relevant to METRO GROUP.
IAS 17 has been revised by the "Improvements to IFRSs 2009". The previous regulation which determined that leases of land are generally classified as operating leases if the ownership of the lease asset is not transferred to the lessee at the end of the lease term has been removed. Beginning with the business year 2010, all land leases shall be assessed and classified as finance leases or operating leases in an analogous manner to the classification of other lease assets. This also applies to unexpired leases.
In the first quarter 2010, METRO GROUP's land leases have been newly classified based on the data as at 1 January 2010, applying the transitional provisions. All land leases which have been newly classified as finance leases are long-running lease contracts. Compared to 2009, the reclassification resulted in additional assets amounting to €53 million recognised in "Tangible assets" and "Other receivables and assets" decreased by €-17 million due to the reversal of deferred expenses for prepaid rents. Additional liabilities amounting to €77 million have been recognised in "Financial liabilities". Differences between the assets and liabilities in the amount of €-41 million have been balanced out over "Reserves retained from earnings".
As a result of the revision of IFRS 3 and IAS 27, several changes to the accounting for business combinations arise for business years beginning on or after 1 July 2009. Therefore, these changes have to be applied by METRO GROUP starting 1 January 2010.
For the treatment of the goodwill resulting from a business combination an option has been introduced which allows for the additional recognition of the goodwill attributed to non-controlling interests (new term for minority interests). This so-called "full goodwill method" also results in higher "Non-controlling interests" in "Equity". As this method is not applied by METRO GROUP, goodwills are still recognised in proportion to the interests held.
Under the previous IFRS 3, all costs directly attributable to the business combination, e. g. notary and consulting fees, have been included in the acquisition costs. Beginning with the business year 2010, all costs of a business combination directly attributable to the acquisition shall be expensed in the period in which they are incurred.
From the business year 2010 onwards, if a business combination is achieved in stages, the previously held assets and liabilities shall be remeasured at their fair values at the date on which control is obtained, affecting profit or loss. Any difference between the previous carrying amount of the interest in the subsidiary and the remeasured proportional net assets of the subsidiary shall be recognised as goodwill. This change had no effect on METRO GROUP in the first half-year 2010, as there has been no business combination achieved in stages, through which control has been obtained.
If contingent payments are agreed in a business combination, they shall be measured at their fair value on the date of acquisition und recognised according to the contractual conditions as asset, liability or equity. A subsequent goodwill adjustment when the acquisition price changes in the following periods resulting from future events (e. g. meeting a sales target) is not allowed, in contrast to the previous regulation.
The revised IAS 27 regulates that a change in the interest in a subsidiary which does not result in a loss of control shall be treated as an equity transaction without affecting profit or loss. If control is lost, all assets and liabilities of the former subsidiary are derecognised. Remaining interests are recognised at their fair values and the difference between the previous carrying amounts and the fair values is recognised affecting profit or loss.
Non-controlling interests, which are negative due to arisen losses, are shown with a deficit balance within equity. Under the previous IAS 27, negative non-controlling interests have been allocated against the majority interest.
The constitution of the item "Change in net working capital" in the "Cash flow statement" has been changed in the first quarter 2010. Previously, net working capital only comprised "Inventories" and "Trade payables". The new definition also includes "Trade receivables" and the items "Due from suppliers", "Due from credit cards" and "Prepayments made on inventories" belonging to "Other receivables and assets" from the asset side. Additionally, the items "Due to trade debtors" and "Prepayments received on orders", which are part of "Other liabilities", have been added. All these items had previously been included in "Other" in the "Cash flow statement". As these items have only been transferred into "Change in net working capital", the amount of "Cash flow from operating activities of continuing operations" remains unchanged. For better comparability, last year's figures for the first half-year 2009 have been adjusted accordingly in the "Cash flow statement".
Reclassifications have been made on the balance sheet between "Other receivables and assets", "Trade receivables", "Trade liabilities" and "Other liabilities", without affecting profit or loss, primarily to reflect the possibility to offset. Previous year's figures as at 30 June 2009 and 31 December 2009 have been adjusted to enhance comparability. The reclassifications had an effect of €-302 million on "Other receivables and assets", of €5 million on "Trade receivables", of €-295 million on "Trade liabilities" and of €-2 million on "Other liabilities" as at 30 June 2009. As at 31 December 2009, the effect on "Other receivables and assets" has been €-380 million, on "Trade receivables" €- 5 million, on "Trade liabilities" €-383 million and on "Other liabilities" €-2 million. The reclassifications ensure a better reflection of the economic substance and, therefore, the communication of more relevant information about METRO GROUP's assets and financial position.
During the financial year, sales-relative and cyclical items are accounted for pro-rata based on corporate planning, where material.
These interim consolidated financial statements have been prepared in euros. All amounts are stated in millions of euros (€ million), unless otherwise indicated.
To provide a better overview within the tables, decimal places have been partly omitted. As a result, rounding differences may occur.
In H1 2010, METRO GROUP maintained the following business relations to related companies:
| € million | H1 2009 | H1 2010 |
|---|---|---|
| Goods/services provided | 0 | 1 |
| Goods/services received | 55 | 54 |
| Receivables from goods/services provided |
17 | 16 |
| Liabilities from goods/services received |
0 | 0 |
| € million | Q2 2009 | Q2 2010 |
| Goods/services provided | 0 | 0 |
| Goods/services received | 28 | 26 |
| Receivables from goods/services provided |
17 | 16 |
In H1 2010, METRO GROUP companies provided goods/services totalling €1 million to companies included in the group of related companies. This concerns primarily the granting of lease rights.
The goods/services totalling €54 million that METRO GROUP companies received from related companies in H1 2010 consist primarily of property leases.
The receivable from goods/services provided to the amount of €16 million relates to a long-term loan granted by Metro Finance B. V. to Metro MSB Leasinggesellschaft mbH & Co. KG for a rented administration building. Metro MSB Leasinggesellschaft mbH & Co. KG is a related company of METRO AG as METRO AG's principle shareholders are its owners.
Business relations with related companies are based on contractual agreements and are at arm's length. In H1 2010, METRO GROUP had no business relations with related natural persons.
On 5 May 2010, the Annual General Meeting of METRO AG appointed Prof Dr Jürgen Kluge as the successor of Franz Markus Haniel, who stepped down from his mandate at the end of the Annual General Meeting. The Supervisory Board has appointed the CEO of Franz Haniel & Cie. GmbH as Chairman of the Supervisory Board.
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining financial year.
30 July 2010
The Management Board
We have reviewed the condensed interim consolidated financial statements of the METRO AG comprising the balance sheet, the income statement, total comprehensive income reconciliation, cash flow statement, statement of changes in equity and selected explanatory notes – together with the interim group management report of the METRO AG, for the period from January 1 to June 30, 2010 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, 30 July 2010
KPMG AG Wirtschaftsprüfungsgesellschaft
Dr. Böttcher Klaaßen
Wirtschaftsprüfer (Auditor) Wirtschaftsprüfer (Auditor)
Quarterly Financial Report 9M/Q3 2010 Friday 29 October 2010 7.15 am
All time specifications are CET.
Schlüterstraße 1 40235 Düsseldorf
PO Box 230361 40089 Düsseldorf
http://www.metrogroup.de
Publication Date
2 August 2010
Phone +49 211 - 6886 – 1936 +49 211 - 6886 – 1051 Fax +49 211 - 6886 – 3759 Email [email protected]
Phone +49 211 - 6886 – 1904 Fax +49 211 - 6886 – 1916 Email [email protected]
| Phone | +49 211 - 6886 – 4252 |
|---|---|
| Fax | +49 211 - 6886 – 2001 |
| [email protected] |
Visit our website at www.metrogroup.de, the primary source for publications and information about the METRO GROUP. 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.
This report contains forward-looking statements which are based on certain expectations and assumptions at the time of publication of this report and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in these materials. Many of these risks and uncertainties relate to factors that are beyond METRO GROUP's ability to control or estimate precisely, such as future market and economic conditions, the behaviour of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated cost savings and productivity gains as well as the actions of government regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this report. METRO GROUP does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.
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