Interim / Quarterly Report • Nov 3, 2011
Interim / Quarterly Report
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| 3 | Overview 9M |
|---|---|
| 4 | Overview Q3 |
| 5 | Metro Share |
| 6 | Interim Group Management Report Report Report |
| 6 | Macroeconomic Conditions |
| 6 | Financial Position and Financial Performance |
| 9 | Opportunities and Risks |
| 9 | Sustainability |
| 10 | Subsequent Events and Outlook |
| 12 | Metro Cash & Carry |
| 14 | Real |
| 15 | Media-Saturn |
| 16 | Galeria Kaufhof |
| 18 | Real Estate and Other |
| 19 | Store Network |
| 20 | Reconciliation of Portfolio Measures |
| 21 | Reconciliation of Special Items |
| 23 | Interim Consolidated Financial Statements Statements |
| 23 | Income Statement |
| 24 | Total Comprehensive Income Reconciliation |
| 25 | Balance Sheet |
| 26 | Cash Flow Statement |
| 27 | Statement of Changes in Equity |
| 28 | Notes |
| 28 | Segment Reporting |
30 Other
33 Financial Calendar and Imprint Calendar and Imprint
METRO GROUP sales GROUP OUP of €47.2 billion ( €47.2 ( (-0.6%; -0.2%in local currency) in currency)
Sales develop positively in Germany (adjusted for store disposals) tore disposals)
International sales grow International sales grow by +0.6% in local currency by +0.6% in local currency currency (Western Europe: - -3.2%; Eastern Europe: +2.9%; Asia/Africa: +15.8%) 3.2%; Asia/Africa: +15.8%)+15.8%)
EBIT before special items special increases increases increases significantly to €1,066 million €1,066 (9M 2010: €915 million) (9M
37 new store openings new store openings
METRO GROUP sales of GROUP of €16.0 billion ( €16.0 billion ( €16.0 (-2.0%; -0.7%in local cu in local cuin currency)
Sales +0.9% in local currency Germany develops positively in like-for-like terms Western Europe: -0.5%; Eastern Europe: +1.6%; Asia/Africa: +11.7% (each in local currency)
Sales -0.5% in local currency Like-for-like sales growth in Germany of 0.7%
Sales -2.2% in local currency Like-for-like sales growth in Germany Western European development declines significantly Sales growth in Eastern Europe
Sales -6.3% Very weak textile market negatively impacts sales development
Significant earnings increase due to real estate sale in Italy
Around 10% growth remains achievable if Christmas business is considerably better; on the back of normal Christmas business, growth at least in line with market expectations of 5%
Q1 EBIT 1) (€ million million) EPS 1) (€) 915 470 452 136 145 2,415 1,066 H1 9M FY
2010 2011
| € million | 9M 2010 | 9M 2011 | Change (€) | Change (LC) |
|---|---|---|---|---|
| Sales | 47,522 | 47,232 | -0.6% | -0.2% |
| Germany | 18,281 | 18,040 | -1.3% | -1.3% |
| International | 29,241 | 29,192 | -0.2% | 0.6% |
| Western Europe (excl. Germany) | 15,228 | 14,826 | -2.6% | -3.2% |
| Eastern Europe | 12,004 | 12,130 | 1.0% | 2.9% |
| Asia/Africa | 2,009 | 2,237 | 11.4% | 15.8% |
| International share of sales | 61.5% | 61.8% | - | |
| EBITDA 1) 2) | 1,886 | 2,031 | 7.7% | |
| EBIT 1) | 915 | 1,066 | 16.5% | |
| EBT 1) | 489 | 557 | 14.0% | |
| Net profit for the period 1) | 318 | 334 | 5.0% | |
| EPS (€) 1) | 0.81 | 0.90 | 11.1% | |
| Capex | 870 | 1,374 | 57.8% | |
| Stores | 2,104 | 2,138 | 1.6% | |
| Selling space (1,000 sqm) | 12,678 | 12,768 | 0.7% | |
| Employees (full-time basis) | 251,229 | 247,872 | -1.3% |
1) Before special items; special items overview on pp. 21-22
2) Adjustment due to netting of non-scheduled write-downs and write-ups in EBITDA
Q1 EBIT 1) (€ million) EPS 1) (€) 614 445 306 334 136 145 1,500 Q2 Q3 Q4
2010 2011
| € million | Q3 2010 | Q3 2011 | Change (€) | Change (LC) |
|---|---|---|---|---|
| Sales | 16,299 | 15,977 | -2.0% | -0.7% |
| Germany | 6,102 | 6,071 | -0.5% | -0.5% |
| International | 10,197 | 9,906 | -2.8% | -0.9% |
| Western Europe (excl. Germany) | 5,248 | 5,013 | -4.5% | -4.8% |
| Eastern Europe | 4,249 | 4,153 | -2.3% | 2.0% |
| Asia/Africa | 699 | 741 | 5.9% | 12.1% |
| International share of sales | 62.6% | 62.0% | - | |
| EBITDA 1) 2) | 771 | 945 | 22.6% | |
| EBIT 1) | 445 | 614 | 37.9% | |
| EBT 1) | 295 | 428 | 44.8% | |
| Net profit for the period 1) | 190 | 251 | 31.8% | |
| EPS (€) 1) | 0.52 | 0.70 | 34.4% | |
| Capex | 416 | 563 | 35.2% | |
| Stores | 2,104 | 2,138 | 1.6% | |
| Selling space (1,000 sqm) | 12,678 | 12,768 | 0.7% | |
| Employees (full-time basis) | 251,229 | 247,872 | -1.3% |
1) Before special items; special items overview on pp. 21-22
2) Adjustment due to netting of non-scheduled write-downs and write-ups in EBITDA
Over the course of 2011 so far, the escalating debt crisis in Europe and the USA has increasingly become the centre of investor attention and has led to high volatility in the stock markets. High energy and raw material prices and their effects on consumer confidence were also central issues on the global stock exchanges. The Metro share was unable to escape the effects of the overall negative macroeconomic situation. Moreover, the Metro share performance was impacted far more than its competitors' due to the difficult consumer electronics environment. The Metro share price fell by 40.7% to €31.93 from January to September 2011. Following the significant outperformance in 2009 and 2010, it has been underperforming the market since the beginning of 2011. Overall, the Metro share has been performing in line with its benchmark indices over the past three years.
| 2008 | 2009 | 2010 | 9M 2011 | ||
|---|---|---|---|---|---|
| Annual closing price (€) | Ordinary share | 28.57 | 42.57 | 53.88 | 31.93 |
| Preference share | 29.00 | 35.00 | 36.09 | 25.00 | |
| Annual high (€) | Ordinary share | 57.51 | 43.50 | 58.53 | 55.91 |
| Preference share | 46.00 | 37.50 | 40.89 | 39.44 | |
| Annual low (€) | Ordinary share | 17.67 | 20.07 | 37.28 | 27.47 |
| Preference share | 19.00 | 21.90 | 32.00 | 22.83 | |
| Market capitalisation (€ billion) | 9.3 | 13.9 | 17.6 | 10.4 |
Data based on XETRA closing prices
| Performance comparison of Metro ordinary share vs DAX vs Dow Jones Euro Stoxx Retail | |||||||
|---|---|---|---|---|---|---|---|
| 31/12/2008 | 31/12/2009 | 31/12/2010 | 30/09/2011 | ||||
| vs 31/12/2007 | vs 31/12/2008 | vs 31/12/2009 | vs 31/12/2010 | ||||
| METRO GROUP | -50.3% | 49.0% | 26.6% | -40.7% | |||
| DAX | -40.4% | 23.8% | 16.1% | -20.4% | |||
| Dow Jones Euro Stoxx Retail | -40.2% | 26.4% | 13.7% | -19.0% |
Source: Bloomberg
Although the global economy continued to recover in the first nine months, key indicators showed a noticeable slowdown in Q3 and it was impossible to keep up the previous year's growth momentum as a result. While the Asian emerging markets in particular continued to be growth drivers, important industrialised nations like the USA and Japan only showed weak economic momentum. After a solid performance in the first half of the year, growth slowed down in Q3 2011 on account of the escalating debt crisis in Europe coupled with poor economic performance in the USA. In addition, the global increase in raw material and energy prices, especially in the first half of the year, resulted in inflation rising further in Q3.
The German economy grew from January to September 2011 and was one of the main economic drivers in Europe. Yet the growth momentum started to slow down in Q3 following an extremely strong start to the year. Labour market data developed positively during the course of the year and household income rose, but the continuing European debt crisis dampened consumer sentiment, and price hikes negatively impacted consumer confidence and, consequently, spending. This had a negative effect on sales in the retail sector. The rate of inflation in the first nine months was considerably higher than in the previous year, primarily due to price hikes for mineral oil products and food.
Economic growth in the Western Europ EuropEuropean countries developed inconsistently from January to September 2011, and in total was relatively weak. The overall picture was dominated by divergences between financially unstable peripheral countries and robust core countries. The Western European economy still recorded solid growth at the beginning of the year despite the government debt crisis in the small peripheral countries, and then growth started to slow down during the course of the year, one of the main reasons being the crisis starting to affect the larger peripheral countries. However, the latest economic slowdown is mostly the result of increasing public debt consolidation, even in larger Eurozone member countries, and the loss of consumer confidence, which is reflected in retail sales. These only grew slightly overall and even fell short of the previous year's figures in real terms. Inflation rose steeply on account of higher energy and food prices, recording the highest level in almost three years in September.
In Eastern Europe Europe, economic development also varied, at times considerably, between individual countries. From January to September 2011, the overall economic situation in Russia, Turkey and Poland was positive, while Romania and Hungary continued to struggle with the effects of the financial crisis. All in all, the economy in Eastern Europe managed to recover further in the first nine months despite overall little growth momentum. But lack of consumer confidence due to the financial crisis and austerity measures was also reflected in retail sales in this region, which did not yet match pre-crisis growth rates. Rising raw material prices and currency devaluations further pushed up inflation.
Asia was a key driver of the global economy in the Asia first nine months, but even in this region the economy slowed down slightly over the course of the year, mainly on account of government measures to limit the trend toward overheating. The rate of inflation remained at a very high level despite tighter monetary policies. In Asia, consumer demand continued to expand, one of the reasons being the favourable situation on the labour market. This is reflected in the positive development of retail sales.
From January to September 2011 January September 2011, METRO GROUP's sales declined by 0.6% to €47.2 billion (9M 2010: €47.5 billion). Positive price effects supported the sales development, whereas negative currency effects impacted sales. In local currency, METRO GROUP's sales came in 0.2% below the prior year's level. Adjusted for portfolio measures, sales were at the same level as in the prior year (see page 20 for further details).
The difficult macroeconomic environment as well as the implementation of Shape 2012 measures to sustainably increase METRO GROUP's profitability and competitiveness had a negative impact on the sales development. These measures include optimising the store network and selling unprofitable businesses (Metro Cash & Carry Morocco and Media-Saturn France). In addition, unprofitable product categories were systematically reduced further and the sales share of low-priced own brands increased. Sales at Media-Saturn were also impacted by the targeted reduction of marketing measures. The further development of the delivery and online businesses, on the other hand, supported sales. The first-time consolidation of Redcoon also increased sales.
Sales in Q3 2011 2011 decreased by 2.0% to €16.0 billion (Q3 2010: €16.3 billion); in local currency, sales declined by 0.7%. Food sales developed much more favourably than non-food sales. Apart from the high prior year comparables, the sales development was also negatively affected by the disposals of Media-Saturn France and Metro Cash & Carry Morocco. The first-time consolidation of Redcoon in Q3 2011 had a positive effect. Adjusted for
portfolio measures, sales declined by 1.4% year-on-year (see page 20 for further details).
Sales in Germany Germany were down 1.3% year-on-year from January to September 2011. The high prior year comparable and store closures also effected the sales development. Adjusted for store closures, sales were above the prior year's level. In Q3, sales decreased slightly by 0.5%.
International sales declined by 0.2% to €29.2 billi International on from January to September 2011 (9M 2010: €29.2 billion). Sales in local currency rose by 0.6% despite the disposals of Metro Cash & Carry Morocco and Media-Saturn France. The international share of sales increased from 61.5% to 61.8%. Sales in Q3 decreased by 2.8% to €9.9 billion (in local currency: -0.9%). The international share of sales amounted to 62.0% compared to 62.6% in the prior year's quarter.
Sales in Western Europe (excluding Germany) from January to September 2011 decreased by 2.6% to €14.8 billion (in local currency: -3.2%). In Q3, sales fell by 4.5% (in local currency: -4.8%). The sale of Media-Saturn France and particularly the difficult macroeconomic environment had a negative effect on consumer electronics sales.
From January to September 2011, sales in Eastern Eu Eastern Eur Europe grew by 1.0% to €12.1 billion. Sales in local cu pe rrency rose by 2.9%. In Q3, sales decreased by 2.3% given the increasingly negative currency effects; in local currency, sales grew by 2.0%. Decreasing sales in Poland in particular restricted higher growth. Russia, on the other hand, continued to report double-digit sales growth.
Asia/Africa remained the fastest growing region. Fr Asia/Africa om January to September 2011, sales increased considerably by 11.4% to €2.2 billion despite Metro Cash & Carry in Morocco being sold. However, this development was negatively impacted by unfavourable currency developments. Sales growth in local currency was even more pronounced at 15.8%. Q3 continued to develop in line with the H1 development. While sales in euros went up by 5.9%, growth in local currency amounted to 12.1%.
From January to September 2011, EBITDA amounted to €1,955 million (9M 2010: €1,774 million) and included one-off expenses of €76 million net (9M 2010: €113 million) resulting from the efficiency- and valueenhancing programme Shape 2012. An overview of the special items is shown on pages 21 and 22. These special items relate in particular to expenses incurred for restructuring measures of which €42 million pertained to Metro Cash & Carry, €8 million to Real, €14 million to Galeria Kaufhof, €14 million to the segment Other and €1 million to consolidation. These one-off expenses were partly compensated by positive special items: €2 million at Media-Saturn and €1 million in the Real Estate segment. Adjusted for these special items, EBITDA amounted to €2,031 million following €1,886 million in 9M 2010.
EBIT rose to €972 million from January to September EBIT 2011 (9M 2010: €794 million). Included therein were €93 million special items (9M 2010: €121 million) in connection with Shape 2012. Adjusted for these special items, EBIT rose from €915 million to €1,066 million. In Q3, EBIT increased to €563 million (Q3 2010: €425 million). EBIT before special items grew considerably by €169 million to €614 million.
The net financial result in the first nine months amounted to €-509 million compared to €-426 million in 9M 2010. The interest result amounted to €-447 million compared to €-431 million in 9M 2010. A €27 million book gain was realised from the sale of the remaining stake in Loyalty Partner in Q1 2011. The other financial result weakened, mainly due to unfavourable currency developments, especially in several Eastern European countries.
From January to September 2011, EBT amounted to €463 million (9M 2010: €368 million). Adjusted for special items, EBT was €557 million (9M 2010: €489 million). The tax rate increased compared to the prior year period, mainly on account of tax expenses relating to previous periods in connection with concluded tax audits carried out abroad. EPS were €0.69 compared to €0.54 in 9M 2010. Adjusted for special items, EPS increased from €0.81 to €0.90.
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 implementation of cost-saving measures, an increasing number of projects to enhance productivity are now taking effect.
From January to September 2011, one-off expenses relating to Shape 2012 amounted to €93 million (9M 2010: €121 million) of EBIT.
In view of the increasing uncertainty for the macroeconomic environment, METRO GROUP further intensified its Shape 2012 efforts. Additional efficiency- and valueenhancing potentials were identified as a result, and the Group decided to take corresponding measures. METRO GROUP therefore anticipates an increase in oneoff expenses in 2011. Originally, the company had expected gross one-off expenses resulting from the implementation of Shape 2012 to total approximately €650 million for the period from 2009 to 2011. The bulk of these one-offs was incurred in the financial years 2009 (€343 million) and 2010 (€204 million). One-off expenses of €100 million were initially planned for financial year 2011. This amount has now increased by €150 million to approximately €250 million and mainly pertains to one-off expenses for additional structural adjustments and store network optimisation measures with short payback periods.
METRO GROUP's capex from January to September 2011 amounted to €1,374 million (9M 2010: €870 million). This rise was mainly the result of the non-cash addition of finance leases for existing Metro Cash & Carry stores in Germany.
From January to September 2011, 37 new stores were opened and 44 closed respectively sold. In Q3, 17 stores were opened and two disposed of.
From January to September 2011, Metro Cash & Carry opened a total of 12 Metro Cash & Carry stores. In Q3, seven stores were opened, two of which are satellites. The satellite concept is based on stores with a small selling space and increasing customer proximity. These have been counted as separate stores since the beginning of 2011 and are included in the like-for-like figures after one full calendar year according to common practice.
Real disposed of five hypermarkets, one of which in Q3 2011.
Media-Saturn opened 21 stores, nine of which in Q3 2011. After approval by the antitrust authority, 35 French Saturn stores were deconsolidated as at 30 June 2011 and the number of stores adjusted accordingly. One store in Germany and another in Hungary were closed.
In Germany, one department store and one Sportarena were closed and another Sportarena and three smallscale Wanderzeit stores were opened, one of which in Q3 2011.
At the end of September 2011, METRO GROUP operated 2,138 stores.
A detailed presentation on the business development of the individual segments is given on pages 12 to 18.
METRO GROUP employs 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 amounts to €6 billion and was drawn down by around €3.4 billion as at 30 September 2011.
A €750 million bond due on 26 May 2011 (4.625% coupon) and a €350 million bond due on 24 June 2011 (3.625% coupon) were redeemed on time. Refinancing was arranged via the commercial paper programmes.
Both the "Euro Commercial Paper Programme" as well as a further commercial paper programme, specifically geared to French investors, facilitate the coverage of short-term funding requirements. The maximum volume of each programme amounts to €2 billion. The drawdown on both programmes from January to September 2011 amounted to €1.3 billion on average (9M 2010: €0.7 billion).
In addition, METRO GROUP has bilateral and syndicated credit facilities amounting to €4.9 billion with durations up to 2015. As at 30 September 2011, the drawdown thereof was €1.5 billion (30 September 2010: €1.4 billion). €3.4 billion in long-term bilateral and syndicated credit lines were not drawn down.
Total assets decreased by €3.8 billion to €31.3 billion compared to 31 December 2010. This is mainly due to the decrease in cash and cash equivalents typical for Q1 in comparison to the year-end closing.
As at 30 September 2011, METRO GROUP's balance sheet disclosed €6.1 billion equity. The year-to-date equity ratio increased significantly from 18.4% to 19.3%.
Net debt, after netting cash and cash equivalents, as well as bank deposits, with financial liabilities (including finance leases), totalled €7.8 billion compared to €3.5 billion as at 31 December 2010. This increase in net debt against the prior year-end closing is characteristic and resulted mainly from the reduction in trade payables. The reason for this reduction lies in the seasonally high share of sales Q4 contributes to the full year, which regularly corresponds to high trade payables at the year-end closing. Net debt went up by €0.2 billion compared to 30 September 2010, primarily due to additions to finance leases in Germany.
From January to September 2011, cash outflow from operating activities amounted to €2.5 billion (9M 2010: €2.4 billion cash outflow).
Cash flow from investing activities included cash outflows for capex and acquisitions as well as cash inflows relating to property sales and to the sale of shares in Loyalty Partner. Overall, cash outflow amounted to €0.5 billion (9M 2010: €0.5 billion cash outflow)
Cash flow before financing activities totalled €-3.0 billion (9M 2010: €-2.9 billion).
Cash inflow from financing activities amounted to €0.2 billion (9M 2010: €0.7 billion cash inflow).
Since the preparation of the Annual Report (28 February 2011), changes arose from the reported opportunities and risks concerning the ongoing development of METRO GROUP as described in detail in the Annual Report 2010 (pp. 129 − 133).
Risks emanating from political upheavals in the Middle East/North Africa and the effects of the natural disaster in Japan previously stated in the Quarterly Financial Report Q1 did not gain any significance in Q2 and became less pronounced in Q3. Japan's economy is already on the way to recovery in H2 2011 after slumping on account of the disaster in March. The oil price, which had risen as a result of the turbulences in the Middle East/North Africa, also weakened in general further. The overall European sovereign debt crisis, on the other hand, continued. Many countries have already approved additional measures for consolidating their public debt. Therefore the impairment of private consumption may turn out to be graver than anticipated in the Annual Report.
In many parts of Europe, the difficult macroeconomic environment had a negative impact on the consumers' propensity to buy consumer electronics. In addition, there are currently no attractive product innovations on the market. A continuation of this development could have a considerable negative effect on consumer electronics retail.
There are no risks that could endanger the company's existence and at present none can be identified for the future.
In September 2011, METRO GROUP was able to defend its position on the Dow Jones Sustainability Index World and was once again a constituent in this index. Analysts particularly commended METRO GROUP for its commitment to the economic aspect of sustainability, including good risk management, effective anti-corruption rules and efficient customer management.
Also in September 2011, METRO GROUP was included for the first time in the Carbon Disclosure Leadership Index. Only 52 of the world's 500 largest companies were included in this index. METRO GROUP's evaluation turned out extremely positively, based on an analysis of the answers given on a Carbon Disclosure Project questionnaire, which dealt with greenhouse gas emissions, emission reduction targets as well as the risks and opportunities arising from climate change. The Carbon Disclosure Project is supported by 551 institutional investors with assets totalling USD 71 billion.
On 9 October 2011, the CEO of METRO AG, Dr Eckhard Cordes, informed the Supervisory Board and the principal shareholders of METRO AG that he will no longer be available for an extension of his current contract which expires on 31 October 2012.
The Chairman of the Supervisory Board, Prof Dr Jürgen Kluge, informed METRO AG on 17 October 2011 that he will be resigning from his position as chairman and member of the Supervisory Board of METRO AG after the expiration of the notice period of one month in accordance with the Articles of Association. Upon request of the Management Board, the Düsseldorf District Court appointed Mr Franz Markus Haniel as member of the Supervisory Board as of 18 November 2011.
METRO AG holds an indirect 75.41% share in Media-Saturn-Holding GmbH (MSH). In spring 2011, METRO AG started to implement measures to strengthen MSH's governance structure. Accordingly, the establishment of an MSH advisory board (Beirat) is intended to provide a simple majority rule for certain transactions requiring approval in accordance with MSH's Rules of Procedure and Articles of Association. There are certain approval requirements for the shareholders' meeting of MSH to date which, for instance, pertain to the acquisition or sale of companies or the preparation and amendment of the Rules of Procedure for the company's management and for which a majority vote of 80% had to be achieved up to now. One of MSH's minority shareholders has filed an action for rescission (Anfechtungsklage) against the shareholdersP resolution to establish an advisory board (Beirat). This action for rescission (Anfechtungsklage) was dismissed by Ingolstadt Regional Court on 11 October 2011. By taking this action, the court confirmed that the MSH advisory board (Beirat) was lawfully established. During the declaratory proceedings also initiated by MSH's minority shareholder, the court ruled that the MSH advisory board (Beirat) needs an 80% majority vote to authorise transactions previously requiring the approval of the shareholders' meeting in accordance with the Articles of Association. METRO AG has appealed against this ruling via its subsidiary METRO Kaufhaus und Fachmarkt Holding GmbH and is confident it will win. In addition, METRO Kaufhaus und Fachmarkt Holding GmbH filed a written request for arbitration on 28 March 2011 with the objective of determining that the MSH advisory board (Beirat) is responsible for certain transactions requiring approval (among others those stated above) and that it also will resolve such matters with a simple majority.
The European and US sovereign debt crisis makes it increasingly difficult to forecast economic development. Many experts have significantly reduced their growth estimates. Economic performance in Germany and Western Europe is now expected to stagnate or even decline by the end of the year. The general economic situation in Western and Eastern Europe is still marked by inconsistent developments between individual countries. It appears probable that the still high growth rates in the Asian emerging markets will continue to slow down. The rate of inflation is likely to fall only slowly, but overall it is to be expected that inflation will decline in line with easing raw material prices as well as decreasing global economic demand.
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. METRO GROUP considers itself well prepared for the future and can build upon a successful portfolio of sales divisions and countries.
METRO GROUP confirms its adjusted sales forecast for financial year 2011 and expects sales (adjusted for changes in the portfolio) to exceed the prior year's level, provided that sales development in Q4 gains considerable momentum and that there will be no further negative developments regarding exchange rates. In addition, the company presumes that in its high-revenue countries the austerity measures to stabilise public debt will have been largely implemented.
METRO GROUP is still of the opinion that it will be able to achieve earnings growth before special items of around 10% (basis: EBIT before special items 2010: €2,415 million). However, this target carries higher risks such as increased uncertainty caused by the European sovereign debt crisis and the economic slowdown. Meeting this target also assumes that the Christmas business will be significantly better than in the previous year. In 2010, the Christmas business was also negatively impacted by the weather. METRO GROUP nevertheless expects that the Shape measures will continue to develop their positive effect in Q4 and consequently forecasts earnings growth at least in line with current market expectations of 5%, even if the Christmas business develops normally compared to the weak prior year figures.
In financial year 2011, METRO GROUP plans to invest €2.2 billion and open over 100 new stores.
| Medium | ||
|---|---|---|
| 2011 | term | |
| Investments (€ billion) | 2.2 | > 2.2 |
| New store openings | ||
| Metro Cash & Carry | > 40 | > 40 |
| Real | ~ 5 | > 10 |
| Media-Saturn | ~ 60 | > 70 |
| Galeria Kaufhof | 1) 4 |
- |
| Sales growth | > 0% | > 6% |
| Earnings (before special items) | Increase 5% - 10% | Increase > 10% |
| 1) Sportarena |
| Sales Sales € million € million |
Change Change (€) (€) |
Currency Currency Currency effects effectseffects |
Change (local currency) currency) currency) |
lfl (local currency) (local |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | |
| Total Total |
22,481 22,481 |
22,571 | 1.4% | 0.4% | 2.3% | -1.0% | -0.9% | 1.4% | -1.8% | 0.2% |
| Germany | 3,811 | 3,693 | -2.7% | -3.1% | 0.0% | 0.0% | -2.7% | -3.1% | -1.8% | 0.0% |
| Western Europe (excl. Germany) | 8,641 | 8,571 | -1.2% | -0.8% | 0.2% | -0.1% | -1.4% | -0.7% | -1.2% | -0.8% |
| Eastern Europe | 8,188 | 8,306 | 3.2% | 1.4% | 5.3% | -1.7% | -2.1% | 3.1% | -4.0% | -1.2% |
| Asia/Africa | 1,841 | 2,002 | 16.6% | 8.7% | 3.2% | -4.7% | 13.4% | 13.4% | 6.6% | 13.3% |
| Sales Sales € million € million |
Change Change Currency Currency Currency (€) effects effects effects (€) |
Change (local currency) currency) (local currency) |
lfl (local currency) (local currency) |
|||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | |
| Total Total |
7,833 7,833 |
7,736 | 4.0% | -1.2% | 2.7% | -2.1% | 1.3% | 0.9% | 0.1% | -0.5% |
| Germany | 1,284 | 1,248 | -1.5% | -2.8% | 0.0% | 0.0% | -1.5% | -2.8% | -0.5% | 0.1% |
| Western Europe (excl. Germany) | 2,982 | 2,955 | -0.4% | -0.9% | 0.4% | -0.4% | -0.8% | -0.5% | -0.7% | -0.7% |
| Eastern Europe | 2,929 | 2,864 | 7.1% | -2.2% | 5.1% | -3.8% | 2.0% | 1.6% | -0.1% | -2.9% |
| Asia/Africa | 638 | 669 | 27.5% | 4.9% | 11.5% | -6.8% | 16.0% | 11.7% | 7.9% | 13.2% |
From January to September 2011, sales at Metro Cash & Carry grew by 0.4% to €22.6 billion (in local currency: +1.4%). Sales growth was impaired year-on-year on account of the market exit from Morocco. Adjusted for Moroccan sales (9M 2010: €159 million), sales growth amounted to 1.1%. In like-for-like terms, sales grew by 0.2%.
Measures to generate productivity gains in the context of Shape 2012 progressed further from January to September 2011. The share of own brands rose significantly to 15.6% (9M 2010: 13.1%). In addition, the delivery business continued to grow dynamically. Overall delivery sales rose by more than 40% to €1.2 billion.
In Q3 2011, the sales development at Metro Cash & Carry was behind the H1 trend and sales decreased by 1.2% to €7.7 billion (in local currency: +0.9%). It must be taken into account however that the comparable prior year base was tough. Positive price effects again supported the sales development in Q3, while currency effects had a more negative impact on sales.
Sales in Germany Germany fell by 3.1% to €3.7 billion from January to September 2011 due to store disposals in the previous year. Like-for-like sales were flat year-on-year. The lowmargin tobacco and telephone cards business was further reduced − adjusted for these categories, like-for-like sales went up by as much as 2.1%.
In Q3, sales developed more positively than in H1. In likefor-like terms, sales increased slightly by 0.1%. Adjusted for tobacco and telephone cards, like-for-like sales grew by 1.7%. In particular, the destination categories meat, fresh fish and wine developed positively.
A new regional delivery centre in the Ruhrgebiet, one of the largest conurbations in Europe, started operations in Q3 to support the important delivery business.
From January to September 2011, sales in Western Europe declined by 0.8% to €8.6 billion (in local c Europe urrency: -0.7%). Q3 2011 followed the trend of H1 despite tough prior year comparables. Sales fell by just 0.9% and in likefor-like terms by 0.7%. Sales in France increased, also like-for-like. In Spain, like-for-like sales were positive again for the first time since Q1 2010.
In Eastern Europe Eastern Europe Europe, sales rose by 1.4% to €8.3 billion (in local currency: +3.1%) from January to September 2011 in a very inhomogeneous market environment. Like-for-like sales declined by 1.2% and while food sales developed positively, non-food sales continued to decline. In Q3, sales in euros dropped by 2.2% to €2.9 billion compared to high prior year figures. However, sales in local currency increased by 1.6%. Polish and Romanian sales continued to decline. Sales in Russia, on the other hand, grew by a double-digit percentage rate, also in like-for-like terms. Sales growth in the Ukraine was also positive.
From January to September 2011, sales in Asia/Afric Asia/Africa grew by 8.7% to €2.0 billion (in local currency: +13.4%). The market exit from Morocco was more than offset by strong Asian sales growth. Apart from Japan, like-for-like sales growth in all countries in this region was doubledigit. The excellent positive development continued in Q3 despite tough prior year comparables.
The international share of sales went up from 83.0% to 83.6% in the first nine months of 2011.
| € million | 9M 2010 9M 2010 | 9M 2011 | Change Change |
Q3 2010 2010 |
Q3 2011 | Change |
|---|---|---|---|---|---|---|
| EBITDA | 665 | 719 | 8.2% | 311 | 316 | 1.8% |
| EBITDA before special items | 730 | 761 | 4.3% | 316 | 338 | 7.3% |
| EBIT | 457 | 527 | 15.4% | 247 | 254 | 2.7% |
| EBIT before special items | 522 | 569 | 9.0% | 252 | 276 | 9.7% |
| Capex | 224 | 544 | - | 100 | 95 | -5.6% |
| 31/12/2010 | 30/09/2011 | Change Change |
30/06/2011 | 30/09/2011 | Change | |
|---|---|---|---|---|---|---|
| Stores | 687 | 713 | +26 | 706 | 713 | +7 |
| Selling space (1,000 sqm) | 5,355 | 5,445 | +90 | 5,415 | 5,445 | +30 |
| Employees (full-time basis) | 113,256 | 112,194 | -1,062 | 111,528 | 112,194 | +666 |
From January to September 2011, EBITDA grew by €54 million to €719 million. Included therein are expenses resulting from Shape 2012, amounting to €42 million (9M 2010: €65 million). EBITDA before special items came in at €761 million (9M 2010: €730 million).
EBIT rose by €70 million to €527 million in the fir EBIT st nine months of 2011. Also before special items, EBIT grew and totalled €569 million compared to €522 million in 9M 2010. This increase was due to the positive like-for-like sales development as well as in particular to the margin improvements and cost optimisations in connection with Shape 2012. In Q3, the positive earnings trend continued. EBIT before special items increased considerably to €276 million (Q3 2010: €252 million).
Capex from January to September 2011 for expansion Capex and modernisation amounted to €544 million (9M 2010: €224 million). This rise was mainly the result of the noncash addition of finance leases for existing stores in Germany.
From January to September 2011, Metro Cash & Carry opened 12 new stores, of which seven in Q3 2011. Two new stores each were opened in Turkey, the Ukraine and Vietnam. One store each was opened in France, Serbia, Kazakhstan, Russia, India and China.
As at 30 September 2011, Metro Cash & Carry operated 713 stores in 30 countries, thereof 117 in Germany, 260 in Western Europe, 249 in Eastern Europe and 87 in Asia/Africa.
| Sales Sales € million € million |
Change Change (€) (€) |
Currency Currency Currency effects effects effects |
Change (local currency) currency) (local currency) |
lfl (local currency) (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | |
| Total Total |
8,227 8,227 |
8,087 | 2.0% | -1.7% | 1.7% | -0.5% | 0.3% | -1.2% | -0.2% | -0.4% |
| Germany | 6,042 | 5,963 | -2.3% | -1.3% | 0.0% | 0.0% | -2.3% | -1.3% | -0.3% | 0.5% |
| Eastern Europe | 2,185 | 2,124 | 16.3% | -2.8% | 8.0% | -2.0% | 8.3% | -0.8% | 0.1% | -2.8% |
| Sales Sales € million € million |
Change Change (€) (€) |
Currency Currency Currency effects effects effects |
Change (local currency) currency) (local currency) |
lfl (local currency) (local currency) |
||||||
| Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | |
| Total Total |
2,720 2,720 |
2,671 | 1.7% | -1.8% | 1.3% | -1.3% | 0.4% | -0.5% | 0.3% | 0.0% |
| Germany | 1,999 | 1,983 | -1.2% | -0.8% | 0.0% | 0.0% | -1.2% | -0.8% | 0.8% | 0.7% |
| Eastern Europe | 722 | 688 | 10.6% | -4.7% | 5.6% | -4.9% | 5.0% | 0.2% | -1.1% | -1.8% |
In the first nine months of 2011, sales at Real decreased by 1.7% to €8.1 billion (in local currency: -1.2%). Q3 developed slightly better than H1 2011 with sales in local currency declining by 0.5%. Positive price effects continued to support sales development. Like-for-like sales were flat year-on-year.
In Germany, sales decreased in the first nine months of 2011 by 1.3% to €6.0 billion compared to the prior year's period solely due to store disposals. In like-for-like terms, sales increased by 0.5%. Q3 developed positively with likefor-like growth of 0.7%. Innovative marketing campaigns generated additional sales momentum.
520 concept modules were introduced from January to September 2011. The sales share of food own brands rose
to 16.6% (9M 2010: 16.2%).
Sales in the first nine months in Eastern Europe Europe decreased by 2.8% to €2.1 billion, primarily as a result of currency effects. In local currency, sales declined by 0.8%. In Q3, the sales trend was ahead of that in H1. While food sales increased also due to positive price effects, non-food sales continued to fall. Sales in local currency were even up year-on-year, with individual countries performing very differently. While sales in Poland continued to drop, sales growth in Russia, also like-for-like, was double-digit.
The international share of sales declined slightly from 26.6% to 26.3% in the first nine months of 2011.
| € million | 9M 2010 9M 2010 | 9M 2011 | Change Change |
Q3 2010 2010 |
Q3 2011 | Change |
|---|---|---|---|---|---|---|
| EBITDA | 118 | 145 | 22.9% | 49 | 63 | 28.6% |
| EBITDA before special items | 118 | 153 | 29.8% | 49 | 71 | 43.7% |
| EBIT | -41 | 5 | - | 1 | 16 | - |
| EBIT before special items | -25 | 13 | - | 1 | 24 | - |
| Capex | 89 | 122 | 37.0% | 28 | 46 | 60.7% |
| 31/12/2010 | 30/09/2011 | Change Change |
30/06/2011 30/06/2011 |
30/09/2011 | Change | |
|---|---|---|---|---|---|---|
| Stores | 429 | 424 | -5 | 425 | 424 | -1 |
| Selling space (1,000 sqm) | 3,107 | 3,068 | -39 | 3,078 | 3,068 | -10 |
| Employees (full-time basis) | 54,948 | 51,810 | -3,138 | 52,289 | 51,810 | -479 |
From January to September 2011, EBITDA grew by €27 million to €145 million (9M 2010: €118 million).
EBIT increased by €46 million to €5 million (9M 201 EBIT 0: €-41 million); already reaching a positive figure in the first nine months. EBIT before special items went up steeply by €38 million to €13 million on account of the Shape 2012 measures (9M 2010: €-25 million).
Capex amounted to €122 million from January to Sep- Capex tember 2011 (9M 2010: €89 million). In the course of the repositioning, four unprofitable stores in Germany were sold respectively disposed of, one of which in Q3. In Turkey, one store was disposed of.
As at 30 September 2011, the store network comprised 424 stores in six countries, thereof 316 in Germany and 108 in Eastern Europe.
| NTUR | |
|---|---|
| Mont Media |
| Sales Sales |
Change Change (€) (€) |
Currency Currency Currency effects effectseffects |
Change (local currency) currency) currency) |
lfl | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| € million € million |
(local currency) | |||||||||
| 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | |
| Total Total |
14,197 14,197 |
14,042 | 7.7% | -1.1% | 1.3% | 0.4% | 6.4% | -1.5% | 0.8% | -4.8% |
| Germany | 6,218 | 6,275 | 2.1% | 0.9% | 0.0% | 0.0% | 2.1% | 0.9% | 0.8% | -1.0% |
| Western Europe (excl. Germany) | 6,348 | 6,006 | 11.3% | -5.4% | 1.2% | 1.4% | 10.1% | -6.8% | 3.3% | -8.8% |
| Eastern Europe | 1,630 | 1,700 | 17.7% | 4.3% | 8.4% | -2.5% | 9.3% | 6.8% | -8.9% | -4.6% |
| Asia | 0 | 61 | - | - | - | - | - | - | - | - |
| Sales Sales |
Change Change |
Currency Currency Currency | Change | lfl | ||||||
| € million € million |
(€) (€) |
effects effectseffects | (local currency) currency) (local currency) |
(local currency) (local currency) |
||||||
| Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | |
| Total Total |
4,848 4,848 |
4,736 | 7.9% | -2.3% | 1.4% | -0.1% | 6.5% | -2.2% | 1.0% | -5.1% |
| Germany | 2,068 | 2,143 | 2.6% | 3.6% | 0.0% | 0.0% | 2.6% | 3.6% | 1.6% | 0.2% |
| Western Europe (excl. Germany) | 2,182 | 1,971 | 8.7% | -9.7% | 1.7% | 1.2% | 7.0% | -10.9% | 0.5% | -10.4% |
| Eastern Europe | 598 | 601 | 27.0% | 0.5% | 6.5% | -5.5% | 20.5% | 6.0% | 0.9% | -5.7% |
Asia 0 22 - - - - - - - -
In the first nine months, sales at Media-Saturn declined by 1.1% to €14.0 billion (in local currency: -1.5%). Against the backdrop of an overall difficult market, especially in Western Europe, like-for-like sales decreased by 4.8%. All in all, Media-Saturn continued to extend its strong market position in many European countries. Online sales, including Redcoon, totalled €169 million from January to September 2011 (9M 2010: €43 million).
Q3 continued to be marked by the poor macroeconomic conditions in many European countries. Also the consumer electronics trade fair IFA in Berlin was unable to create sustainable impulses with its exhibited product innovations. In addition, sales were negatively impacted by the targeted reduction in marketing measures, especially in Western Europe. Sales decreased by 2.3% to €4.7 billion. The online retailer Redcoon, which was acquired in March 2011, was consolidated as from Q3 2011. Redcoon's sales since its first-time consolidation amounted to €106 million. A comparison of the two comparable quarters (Q3 2011 vs. Q3 2010) shows an increase of 25%.
In Germany Germany Germany, sales went up by 0.9% to €6.3 billion in the first nine months of 2011. In like-for-like terms, sales decreased by 1.0%. Q3 showed a marked improvement. Sales grew by 3.6%, mainly on account of the first-time consolidation of Redcoon. Like-for-like sales rose by 0.2% despite less advertising activity. The implemented measures for sharpening the price profile showed their first success. White goods, flat screen televisions and notebooks were in particular demand. The own brands also enjoyed increased customer interest.
In the first nine months of 2011, sales in Western Europe declined by 5.4% to €6.0 billion (in local currency: -6.8%). The difficult market conditions led to a considerable drop in sales as did the sale of the French consumer electronics stores as at 30 June 2011. Sales in Q3 fell by 9.7% to €2.0 billion (Q3 2010: €2.2 billion). Adjusted for the store disposals in France, sales were down 3.2% year-on-year. In like-for-like terms, sales declined significantly by 10.4%. The Western European market environment for consumer electronics continued to deteriorate in Q3, leading to consumers showing a noticeable reluctance to spend, particularly in Spain, Portugal and Italy. In contrast, sales in the Netherlands and Belgium increased. In the Netherlands, the success of the implemented multichannel concept was also evident.
In the first nine months of 2011, sales in Eastern Eastern Europe went up by 4.3% to €1.7 billion and as much as 6.8% in local currency. Like-for-like sales were however down as a result of consumer reticence. Q3 did not show any improvements compared to H1. Sales in Poland dropped considerably while business in Russia continued to develop very positively.
In Asia, sales amounted to €61 million in the first nine months, €22 million of which was generated in Q3. The fourth Media Markt store opened in Shanghai, further strengthening the market position there. Customer response continued to be extremely positive.
The international share of sales declined from 56.2% to 55.3% in the first nine months of 2011.
| € million | 9M 2010 9M 2010 | 9M 2011 | Change Change |
Q3 2010 2010 |
Q3 2011 | Change |
|---|---|---|---|---|---|---|
| EBITDA | 430 | 351 | -18.4% | 187 | 197 | 5.4% |
| EBITDA before special items | 434 | 349 | -19.7% | 187 | 204 | 8.9% |
| EBIT | 241 | 157 | -35.0% | 124 | 128 | 3.0% |
| EBIT before special items | 246 | 163 | -34.0% | 124 | 141 | 12.9% |
| Capex | 212 | 310 | 46.5% | 99 | 217 | - |
| 31/12/2010 | 30/09/2011 | Change Change |
30/06/2011 | 30/09/2011 | Change | |
| Stores | 877 | 861 | -16 | 853 | 861 | +8 |
| Selling space (1,000 sqm) | 2,829 | 2,783 | -46 | 2,754 | 2,783 | +29 |
Employees (full-time basis) 61,346 56,669 -4,677 56,054 56,669 +615
EBITDA came to €351 million in the first nine month EBITDA s of 2011 (9M 2010: €430 million).
EBIT declined to €157 million (9M 2010: €241 millio EBIT n). From January to September 2011, EBIT before special items amounted to €163 million (9M 2010: €246 million). EBIT increased to €128 million in Q3 (Q3 2010: €124 million). Special items came to €13 million (Q3 2010: €0 million) and primarily included restructuring measures. However, EBIT before special items grew considerably from €124 million to €141 million. This EBIT increase reflects the first successes of the cost optimisation measures and the cessation of operating losses in France. These offset the start-up losses in China as well as the increased costs for the implementation of the multichannel strategy.
Capex totalled €310 million from January to Septemb Capex er 2011 (9M 2010: €212 million) and included the acquisition of Redcoon. 21 stores were opened from January to September 2011, nine of which in Q3.
The store network grew by three stores each in Turkey and China and by two stores each in Austria, Poland, Russia and the Netherlands. One store each was opened in Belgium, Italy, Portugal, Sweden, Switzerland, Spain and France. One German and one Hungarian store were closed and all 35 French stores were disposed of.
At the end of Q3 2011, the store network of Media-Saturn comprised 861 stores in 16 countries, thereof 381 in Germany, 329 in Western Europe, 147 in Eastern Europe and four in Asia.
| پ | |
|---|---|
| Galeria Kaufhof | |||||||
|---|---|---|---|---|---|---|---|
| Sales | |||||||
| € million | Change | lfl | |||||
| 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | ||
| Total Total |
2,412 2,412 |
2,331 | 1.4% | -3.3% | 1.4% | -2.9% | |
| Germany | 2,172 | 2,083 | 1.3% | -4.1% | 1.3% | -3.5% | |
| Western Europe (excl. Germany) | 239 | 248 | 2.8% | 3.6% | 2.7% | 3.1% | |
| Sales € million million |
Change Change |
lfl | |||||
| Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | ||
| Total Total |
828 828 |
776 | 3.5% | -6.3% | 4.2% | -6.7% | |
| Germany | 743 | 688 | 2.9% | -7.4% | 3.8% | -7.5% | |
Western Europe (excl. Germany) 84 87 9.0% 3.3% 8.8% 2.1%
From January to September 2011, sales at Galeria Kaufhof decreased by 3.3% to €2.3 billion. In like-for-like terms, sales declined by 2.9%. In Q3, sales fell by 6.3% compared to the strong prior year figures.
In Germany Germany, sales at Galeria Kaufhof decreased by 4.1% to €2.1 billion from January to September 2011. In likefor-like terms, sales were down 3.5%. In Q3, sales fell by 7.4%. The unusually cold weather in July and August had a negative impact on summer goods sales and the unusually warm temperatures at the sales begin of the autumn and winter collection resulted in considerable customer reticence. Galeria Kaufhof was unable to escape these developments due to its high proportion of textile sales. In
addition, Galeria Kaufhof started to phase out the sale of low-margin technical goods. The related remodellings in 21 stores had a negative effect on the business development.
"Galeria 1879 by Wolfgang Joop" products have been stocked in all Galeria Kaufhof department stores since 20 September. Creative partner and designer icon Wolfgang Joop has created a fashion and accessories range that is stylish and perfect for everyday wear.
From January to September 2011, sales in Western Western Europe grew by 3.6% to €0.2 billion. The positive d Europe evelopment of H1 continued in Q3 and sales went up by 3.3% compared to very tough prior year comparables.
| € million | 9M 2010 9M 2010 | 9M 2011 | Change Change |
Q3 2010 2010 |
Q3 2011 | Change |
|---|---|---|---|---|---|---|
| EBITDA | 44 | 17 | -60.4% | 30 | 12 | -61.4% |
| EBITDA before special items | 44 | 31 | -27.3% | 30 | 16 | -45.8% |
| EBIT | -27 | -55 | - | 7 | -13 | - |
| EBIT before special items | -27 | -40 | 46.9% | 7 | -9 | - |
| Capex | 49 | 83 | 70.1% | 30 | 50 | 63.2% |
| 31/12/2010 | 30/09/2011 | Change Change |
30/06/2011 | 30/09/2011 | Change | |
|---|---|---|---|---|---|---|
| Stores | 138 | 140 | +2 | 139 | 140 | +1 |
| Selling space (1,000 sqm) | 1,480 | 1,472 | -8 | 1,469 | 1,472 | +3 |
| Employees (full-time basis) | 19,864 | 18,221 | -1,643 | 18,283 | 18,221 | -62 |
EBITDA totalled €17 million in the first nine month EBITDA s of 2011 compared to €44 million in the prior year.
EBIT decreased from €-27 million to €-55 million in EBIT the first nine months. EBIT before special items amounted to €-40 million (9M 2010: €-27 million). The sales development in Q3 resulted in a drop in EBIT. The special items related to expenses incurred for restructuring measures, particularly for store closures.
From January to September 2011, capex in the store network amounted to €83 million (9M 2010: 49 million). Investments included remodellings as well as four new stores.
From January to September 2011, two stores were closed and four stores opened, one of which in Q3. The new stores were one Sportarena and three Wanderzeit stores.
As at 30 September 2011, the store network of Galeria Kaufhof comprised 140 stores, thereof 125 in Germany and 15 in Belgium.
| 682 809 688 808 399 513 401 520 253 232 31/12/2010 30/09/2011 1,299 1,210 Q3 2011 230 349 |
18.6% 17.4% 28.3% 29.6% -8.3% Change -89 Change |
|---|---|
| 51.9% | |
| 231 351 |
52.3% |
| 244 | 87.3% |
| 245 | 87.6% |
| 123 | -12.4% |
| 30/09/2011 | Change |
| 1,210 | -8 |
| 130 131 140 30/06/2011 1,218 |
write-ups in EBITDA in prior year
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 this context, a total of 20 Italian Metro Cash & Carry stores were placed in a closed-end real estate fund called "M Due" and the fund shares sold to institutional investors in Q3 2011.
As at 30 September 2011, METRO GROUP owned 680 properties (31 December 2010: 688).
From January to September 2011, EBITDA came in at €809 million (9M 2010: €682 million) and included earnings from special items amounting to €1 million (9M 2010: €6 million in expenses). EBITDA before special items was €808 million (9M 2010: €688 million). These earnings mainly constitute rental income paid by METRO GROUP's divisions. The marked increase was mainly due to the sale of the Italian properties.
EBIT was €513 million compared to €399 million in t EBIT he prior year. EBIT before special items increased to €520 million (9M 2010: €401 million). EBIT before special items rose steeply from €131 million to €245 million in Q3 as a result of the real estate transaction in Italy.
| € million | 9M 2010 9M 2010 | 9M 2011 | Change |
|---|---|---|---|
| Sales | 205 | 201 | -1.9% |
| EBITDA | -151 | -74 | 50.8% |
| EBITDA before special items | -119 | -60 | 49.5% |
| EBIT | -226 | -165 | 27.1% |
| EBIT before special items | -194 | -151 | 22.4% |
| Capex | 42 | 82 | 92.4% |
| 31/12/2010 | 30/09/2011 | Change | |
| Employees (full-time basis) | 7,316 | 7,768 | +452 |
| € million | Q3 2010 Q3 2010 | Q3 2011 | Change |
| Sales | 70 | 58 | -16.7% |
| EBITDA | -50 | -35 | 31.3% |
| EBITDA before special items | -36 | -33 | 10.6% |
| EBIT | -79 | -64 | 18.9% |
| EBIT before special items | -65 | -62 | 4.8% |
| Capex | 18 | 34 | 83.3% |
| Employees (full-time basis) | 30/06/2011 7,527 |
30/09/2011 7,768 |
Change +241 |
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.
From January to September 2011, sales in the segment Other totalled €201 million (9M 2010: €205 million). Sales mainly reflected the third-party business via METRO GROUP's procurement organisation in Hong Kong.
From January to September 2011, EBIT before special items improved significantly to €-151 million (9M 2010: €-194 million) and included costs from the reversal of the secured 2008 tranche of the share bonus programme. Within the scope of Shape 2012, €14 million were incurred for optimisation measures at the cross-divisional service companies and at METRO AG (9M 2010: €32 million). The EBIT improvement resulted, among other factors, from one-off expenses in the prior year relating to the reduction of METRO AG's Management Board, as well as from reduced stewardship costs.
| Metro Cash | Metro Cash & Carry Carry |
Real Real |
Media-Saturn Media-Saturn Media-Saturn |
Galeria Kaufhof Galeria Kaufhof |
METRO GROUP | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3 | 9M | 30/09/11 | Q3 | 9M | 30/09/11 | Q3 | 9M | 30/09/11 | Q3 | 9M | 30/09/11 | Q3 | 9M | 30/09/11 | |
| Germany Germany |
117 117 |
-1 | -4 | 316 | -1 | 381 | +1 | +2 | 125 | -3 | 939 | ||||
| Austria | 12 | +2 | +2 | 44 | +2 | +2 | 56 | ||||||||
| Belgium | 11 | +1 | +1 | 21 | 15 | +1 | +1 | 47 | |||||||
| Denmark | 5 | 5 | |||||||||||||
| France | +1 | 92 | -34 | 0 | -33 | 92 | |||||||||
| Italy | 48 | +1 | 105 | +1 | 153 | ||||||||||
| Luxemburg | 2 | 2 | |||||||||||||
| Netherlands | 17 | +2 | +2 | 38 | +2 | +2 | 55 | ||||||||
| Portugal | 11 | +1 | 10 | +1 | 21 | ||||||||||
| Spain | 34 | +1 | 65 | +1 | 99 | ||||||||||
| Sweden | +1 | 20 | +1 | 20 | |||||||||||
| Switzerland | +1 | +1 | 24 | +1 | +1 | 24 | |||||||||
| United Kingdom | 30 | 30 | |||||||||||||
| Western Europe Europe |
+1 +1 |
260 | +6 | -24 | 329 | 15 | +6 | -23 | 604 | ||||||
| Bulgaria | +2 | 13 | +2 | 13 | |||||||||||
| Croatia | 6 | 6 | |||||||||||||
| Czech Republic | 13 | 13 | |||||||||||||
| Greece | 9 | 13 | 22 | ||||||||||||
| Hungary | 13 | -1 | -1 | 20 | -1 | -1 | 33 | ||||||||
| Kazakhstan | +1 | +1 | 6 | +1 | +1 | 6 | |||||||||
| Moldova | 3 | 3 | |||||||||||||
| Poland | +4 | 33 | 54 | +1 | +2 | 61 | +1 | +6 | 148 | ||||||
| Romania | +4 | 30 | 25 | +4 | 55 | ||||||||||
| Russia | +1 | 58 | 16 | +1 | +2 | 33 | +1 | +3 | 107 | ||||||
| Serbia | +3 | 9 | +3 | 9 | |||||||||||
| Slovakia | 6 | 6 | |||||||||||||
| Turkey | +1 | +2 | 20 | -1 | 12 | +3 | 20 | +1 | +4 | 52 | |||||
| Ukraine | +2 | +4 | 30 | 1 | +2 | +4 | 31 | ||||||||
| Eastern Europe Europe |
+4 +4 |
+21 | 249 | -1 | 108 | +1 | +6 | 147 | +5 | +26 | 504 | ||||
| China | +1 | 49 | +1 | +3 | 4 | +1 | +4 | 53 | |||||||
| Egypt | 2 | 2 | |||||||||||||
| India | +1 | +1 | 7 | +1 | +1 | 7 | |||||||||
| Japan | 9 | 9 | |||||||||||||
| Pakistan | 5 | 5 | |||||||||||||
| Vietnam | +2 | +2 | 15 | +2 | +2 | 15 | |||||||||
| Asia/Africa Asia/Africa |
+3 +3 |
+4 | 87 | +1 | +3 | 4 | +4 | +7 | 91 | ||||||
| Total Total |
+7 +7 |
+26 | 713 | -1 | -5 | 424 | +8 | -16 | 861 | +1 | +2 | 140 | +15 | +7 | 2,138 |
| € million | 9M 2010 | 9M 2011 | Change |
|---|---|---|---|
| METRO GROUP sales as reported | 47,522 | 47,232 | -0.6% |
| Sales from divestments | 599 599 |
226 226 |
|
| thereof Metro Cash & Carry Morocco | 159 | 0 | |
| Media-Saturn France | 427 | 226 | |
| Grillpfanne | 13 | 0 | |
| Sales from acquisitions | 0 | 106 | |
| thereof Redcoon | 0 | 106 | |
| METRO GROUP sales adjusted for portfolio measures | 46,923 | 46,900 | 0.0% |
| € million | Q3 2010 | Q3 2011 | Change |
|---|---|---|---|
| METRO GROUP sales as reported | 16,299 | 15,977 | -2.0% |
| Sales from divestments | 204 | 0 | |
| thereof Metro Cash & Carry Morocco | 57 | 0 | |
| Media-Saturn France | 145 | 0 | |
| Grillpfanne | 2 | 0 | |
| Sales from acquisitions | 0 | 106 | |
| thereof Redcoon | 0 | 106 | |
| METRO GROUP sales adjusted for portfolio measures | 16,095 | 15,871 | -1.4% |
| As reported As reported |
Special items items Special items |
Before special Before special items |
|||||
|---|---|---|---|---|---|---|---|
| € million | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | |
| EBITDA | 1 1,774 |
1,955 1,955 |
1 113 |
76 76 |
1 1,886 |
2,031 | |
| thereof Metro Cash & Carry | 665 | 719 | 65 | 42 | 730 | 761 | |
| Real | 118 | 145 | 0 | 8 | 118 | 153 | |
| Media-Saturn | 430 | 351 | 4 | -2 | 434 | 349 | |
| Galeria Kaufhof | 44 | 17 | 0 | 14 | 44 | 31 | |
| Real estate | 1 682 |
809 | 1 6 |
-1 | 1 688 |
808 | |
| Other | -151 | -74 | 32 | 14 | -119 | -60 | |
| Consolidation | 1 -14 |
-12 | 1 6 |
1 | -8 | -11 | |
| EBIT | 794 794 |
972 972 |
121 | 93 | 915 | 1,066 | |
| thereof Metro Cash & Carry | 457 | 527 | 65 | 42 | 522 | 569 | |
| Real | -41 | 5 | 16 | 8 | -25 | 13 | |
| Media-Saturn | 241 | 157 | 5 | 6 | 246 | 163 | |
| Galeria Kaufhof | -27 | -55 | 0 | 15 | -27 | -40 | |
| Real estate | 399 | 513 | 2 | 7 | 401 | 520 | |
| Other | -226 | -165 | 32 | 14 | -194 | -151 | |
| Consolidation | -10 | -9 | 1 | 1 | -9 | -8 | |
| EBT | 368 | 463 | 121 | 93 | 489 | 557 | |
| Net profit for the period | 229 | 266 | 89 | 68 | 318 | 334 | |
| Earnings per share (€) | 0.54 | 0.69 | 0.27 | 0.21 | 0.81 | 0.90 |
1Adjustment due to netting of non-scheduled write-downs and write-ups in EBITDA
| As reported As reported |
Special items Special items Special items |
Before special items Before special items |
|||||
|---|---|---|---|---|---|---|---|
| € million | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | |
| EBITDA | 1 1,774 |
1,955 1,955 |
1 113 113 |
76 76 |
1 1,886 1,886 |
2,031 | |
| thereof Germany | 1 392 |
389 | 1 95 |
65 | 487 | 454 | |
| Western Europe (excl. Germany) | 1 657 |
770 | 12 | 8 | 1 669 |
778 | |
| Eastern Europe | 1 730 |
773 | 6 | 2 | 1 736 |
775 | |
| Asia/Africa | 1 -6 |
19 | 1 0 |
1 | -6 | 20 | |
| Consolidation | 1 | 4 | 0 | 0 | 1 | 4 | |
| EBIT | 794 794 |
972 972 |
121 | 93 | 915 | 1,066 | |
| thereof Germany | -94 | -73 | 106 | 74 | 12 | 1 | |
| Western Europe (excl. Germany) | 441 | 573 | 12 | 8 | 453 | 581 | |
| Eastern Europe | 479 | 501 | 7 | 10 | 486 | 511 | |
| Asia/Africa | -33 | -33 | -4 | 1 | -37 | -32 | |
| Consolidation | 1 | 4 | 0 | 0 | 1 | 4 | |
| EBT | 368 | 463 | 121 | 93 | 489 | 557 | |
| Net profit for the period | 229 | 266 | 89 | 68 | 318 | 334 | |
| Earnings per share (€) | 0.54 | 0.69 | 0.27 | 0.21 | 0.81 | 0.90 |
1Adjustment due to netting of non-scheduled write-downs and write-ups in EBITDA
| As reported As reported |
Special items items Special items |
Before special Before special items |
|||||
|---|---|---|---|---|---|---|---|
| € million | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | |
| EBITDA | 751 751 |
899 899 |
20 | 46 | 771 | 945 | |
| thereof Metro Cash & Carry | 311 | 316 | 5 | 22 | 316 | 338 | |
| Real | 49 | 63 | 0 | 8 | 49 | 71 | |
| Media-Saturn | 187 | 197 | 0 | 7 | 187 | 204 | |
| Galeria Kaufhof | 30 | 12 | 0 | 4 | 30 | 16 | |
| Real estate | 230 | 349 | 1 | 2 | 231 | 351 | |
| Other | -50 | -35 | 14 | 2 | -36 | -33 | |
| Consolidation | -5 | -3 | 0 | 1 | -5 | -2 | |
| EBIT | 425 425 |
563 563 |
20 | 51 | 445 | 614 | |
| thereof Metro Cash & Carry | 247 | 254 | 5 | 22 | 252 | 276 | |
| Real | 1 | 16 | 0 | 8 | 1 | 24 | |
| Media-Saturn | 124 | 128 | 0 | 13 | 124 | 141 | |
| Galeria Kaufhof | 7 | -13 | 0 | 4 | 7 | -9 | |
| Real estate | 130 | 244 | 1 | 1 | 131 | 245 | |
| Other | -79 | -64 | 14 | 2 | -65 | -62 | |
| Consolidation | -5 | -2 | 0 | 1 | -5 | -1 | |
| EBT | 275 | 377 | 20 | 51 | 295 | 428 | |
| Net profit for the period | 170 | 211 | 20 | 40 | 190 | 251 | |
| Earnings per share (€) | 0.46 | 0.58 | 0.06 | 0.12 | 0.52 | 0.70 |
| Before special items Before special |
|||||||
|---|---|---|---|---|---|---|---|
| Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | ||
| 751 751 |
899 899 |
20 | 46 | 771 | 945 | ||
| 154 | 157 | 17 | 26 | 171 | 183 | ||
| 317 | 441 | 2 | 16 | 319 | 457 | ||
| 296 | 303 | 1 | 4 | 297 | 307 | ||
| -13 | -2 | 0 | 0 | -13 | -2 | ||
| -4 | -1 | 0 | 0 | -4 | -1 | ||
| 425 425 |
563 563 |
20 | 51 | 445 | 614 | ||
| 3 | 2 | 17 | 25 | 20 | 27 | ||
| 238 | 372 | 2 | 16 | 240 | 388 | ||
| 213 | 210 | 1 | 10 | 214 | 220 | ||
| -24 | -20 | 0 | 0 | -24 | -20 | ||
| -4 | -1 | 0 | 0 | -4 | -1 | ||
| 275 | 377 | 20 | 51 | 295 | 428 | ||
| 170 | 211 | 20 | 40 | 190 | 251 | ||
| 0.46 | 0.58 | 0.06 | 0.12 | 0.52 | 0.70 | ||
| As reported As reported |
Special items items Special items |
| € million | 9M 2010 | 9M 2011 | Q3 2010 | Q3 2011 |
|---|---|---|---|---|
| Net sales | 47,522 47,522 |
47,232 47,232 |
16,299 | 15,977 |
| Cost of sales | -37,587 | -37,424 | -12,887 | -12,613 |
| Gross profit on sales | 9,935 9,935 |
9,808 9,808 |
3,412 | 3,364 |
| Other operating income | 935 | 1,167 | 316 | 501 |
| Selling expenses | -8,887 | -8,807 | -2,902 | -2,888 |
| General administrative expenses | -1,156 | -1,159 | -389 | -403 |
| Other operating expenses | -33 | -37 | -12 | -11 |
| EBIT | 794 794 |
972 972 |
425 | 563 |
| Result from associated companies | 0 | 1 | 0 | 0 |
| Other investment result | 4 | 29 | 4 | 2 |
| Interest income | 81 | 101 | 29 | 36 |
| Interest expenses | -512 | -548 | -170 | -183 |
| Other financial result | 1 | -92 | -13 | -41 |
| Net financial result | -426 -426 |
-509 -509 |
-150 | -186 |
| EBT | 368 368 |
463 463 |
275 | 377 |
| Income taxes | -139 | -197 | -105 | -166 |
| Net profit for the period | 229 229 |
266 266 |
170 | 211 |
| Net profit for the period attributable to non-controlling interests | 53 | 39 | 21 | 21 |
| Profit attributable to shareholders of METRO AG | 176 | 227 | 149 | 190 |
| Earnings per share (€) | 0.54 0.54 |
0.69 0.69 |
0.46 | 0.58 |
| € million | 9M 2010 | 9M 2011 | Q3 2010 | Q3 2011 |
|---|---|---|---|---|
| Net profit for the period | 229 | 266 | 170 | 211 |
| Other comprehensive income | ||||
| Changes in revaluation reserve | 0 | 0 | 0 | 0 |
| Actuarial gains/losses | 0 | 0 | 0 | 0 |
| Currency translation differences from the conversion of the accounts | ||||
| of foreign operations | 103 | -175 | -134 | -134 |
| Effective portion of gains/losses from cash flow hedges | -24 | 18 | -42 | 27 |
| Gains/losses fron the revaluation of financial instruments in the | ||||
| category "available-for-sale" | 0 | 0 | 0 | 0 |
| Income tax attributable to components of "other income" | -6 | 5 | 15 | 2 |
| Total comprehensive income | 302 | 114 | 9 | 106 |
| Comprehensive income attributable to non-controlling interests | 58 | 28 | 15 | 15 |
| Comprehensive income attributable to shareholders of METRO AG | 244 | 86 | -6 | 91 |
| Assets |
|---|
| -------- |
| € million | 31/12/2010 31/12/2010 |
30/09/2010 30/09/2010 |
30/09/2011 |
|---|---|---|---|
| Non-current assets | 18,912 18,912 |
18,595 18,595 |
18,778 |
| Goodwill | 4,064 | 4,007 | 4,126 |
| Other intangible assets | 436 | 448 | 462 |
| Tangible assets | 12,482 | 12,357 | 12,334 |
| Investment properties | 238 | 170 | 215 |
| Financial assets | 248 | 100 | 198 |
| Other receivables and assets | 444 | 477 | 446 |
| Deferred tax assets | 1,000 | 1,036 | 997 |
| Current assets | 16,155 16,155 |
12,041 12,041 |
12,538 |
| Inventories | 7,458 | 6,638 | 6,884 |
| Trade receivables | 526 | 470 | 514 |
| Financial assets | 3 | 38 | 3 |
| Other receivables and assets | 2,724 | 2,466 | 2,541 |
| Entitlements to income tax refunds | 412 | 619 | 477 |
| Cash and cash equivalents | 4,799 | 1,805 | 2,024 |
| Assets held for sale | 233 | 5 | 95 |
| 35,067 35,067 |
30,636 30,636 |
31,316 |
| € million | 31/12/2010 31/12/2010 |
30/09/2010 30/09/2010 |
30/09/2011 |
|---|---|---|---|
| Equity | 6,460 6,460 |
5,835 5,835 |
6,051 |
| Share capital | 835 | 835 | 835 |
| Capital reserve | 2,544 | 2,544 | 2,544 |
| Reserves retained from earnings | 2,929 | 2,203 | 2,565 |
| Non-controlling interests | 152 | 253 | 107 |
| Non-current liabilities | 8,990 8,990 |
8,788 8,788 |
8,436 |
| Provisions for pensions and similar commitments | 1,016 | 1,005 | 1,023 |
| Other provisions | 472 | 493 | 494 |
| Financial liabilities | 6,533 | 6,382 | 5,875 |
| Other liabilities | 757 | 680 | 814 |
| Income tax liabilities | 212 | 228 | 230 |
| Current liabilities | 19,617 19,617 |
16,013 16,013 |
16,829 |
| Trade liabilities | 14,393 | 10,193 1 | 10,146 |
| Provisions | 532 | 492 | 404 |
| Financial liabilities | 1,750 | 3,062 1 | 3,994 |
| Other liabilities | 2,458 | 2,139 | 2,152 |
| Income tax liabilities | 291 | 127 | 133 |
| Liabilities related to assets held for sale | 193 | 0 | 0 |
| 35,067 35,067 |
30,636 30,636 |
31,316 |
1 Adjustment due to reclassification of notes payable
| € million 9M 2010 |
9M 2011 |
|---|---|
| EBIT 794 |
972 |
| Write-backs/write-downs of assets excl. financial assets 980 |
1 983 |
| Change in provisions for pensions and other provisions -45 |
-110 |
| Change in net working capital -3,385 |
2 -3,295 |
| Income taxes paid -559 |
-476 |
| Other -190 |
-592 |
| Total cash flow from operating activities -2,405 -2,405 |
-2,518 -2,518 |
| Corporate acquisitions 0 |
-113 |
| Investments in tangible assets (excl. finance leases) -683 |
-714 |
| Other investments -125 |
-114 |
| Divestments 7 |
0 |
| Disposal of fixed assets 297 |
491 |
| Total cash flow from investing activities -504 -504 |
-450 |
| Profit distribution | |
| to METRO AG shareholders -386 |
-442 |
| to other shareholders -45 |
-49 |
| Changes of financial liabilities 1,566 |
2 1,171 |
| Interest paid -495 |
-528 |
| Interest received 72 |
93 |
| Profit and loss transfers and other financing activities 0 |
-33 |
| Total cash flow from financing activities 712 712 |
212 |
| Total cash flows -2,197 -2,197 |
-2,756 -2,756 |
| Exchange rate effects on cash and cash equivalents 6 |
-26 |
| Change in cash and cash equivalents due to the first-time consolidation of companies 0 |
7 |
| Total change in cash and cash equivalents -2,191 -2,191 |
-2,775 -2,775 |
| Cash and cash equivalents on 1 January 3,996 |
4,799 |
| Cash and cash equivalents on 30 September 1,805 1,805 |
2,024 |
1 Adjustment due to netting of non-scheduled write-downs and write-ups
2 Adjustment due to reclassification of notes payable
| € million | Share capital |
Capital reserve |
Effective portion of gains/ losses from cash flow hedges |
Currency translation differences from the conversion of the accounts of foreign operations |
Income tax attributable to components of "other income" |
Other earnings reserves |
Total reserves retained from earnings |
Total | thereof attribut able to "other income" |
Minority interests |
thereof attribut able to "other income" |
Total equity |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 01/01/2010 | 835 | 2,544 835 2,544 | 67 | -440 | 17 | 2,731 | 2,375 | 5,754 | - | 238 | - | 5,992 |
| Dividends | 0 | 0 | 0 | 0 | 0 | -386 | -386 | -386 | - | -45 | - | -431 |
| Comprehensive income | 0 | 0 | -24 | 98 | -6 | 176 | 244 | 244 | 68 | 58 | 5 | 302 |
| Revision of IAS 17 | 0 | 0 | 0 | 0 | 0 | -28 | -28 | -28 | - | 0 | - | -28 |
| Other changes | 0 | 0 | 0 | 0 | 0 | -2 | -2 | -2 | - | 2 | - | 0 |
| 30/09/2010 | 835 | 2,544 | 43 | -342 | 11 | 2,491 | 2,203 | 5,582 | - | 253 | - | 5,835 |
| 01/01/2011 | 835 | 2,544 835 2,544 | 63 | -315 | 17 | 3,164 | 2,929 | 6,308 | - | 152 | - | 6,460 |
| Dividends | 0 | 0 | 0 | 0 | 0 | -442 | -442 | -442 | - | -49 | - | -491 |
| Comprehensive income | 0 | 0 | 18 | -164 | 5 | 227 | 86 | 86 | -141 | 28 | -11 | 114 |
| Capital balance from acquisition of shares | 0 | 0 | 0 | 0 | 0 | -3 | -3 | -3 | - | -27 | - | -30 |
| Other changes | 0 | 0 | 0 | 0 | 0 | -5 | -5 | -5 | - | 3 | - | -2 |
| 30/09/2011 | 835 | 2,544 | 81 | -479 | 22 | 2,941 | 2,565 | 5,944 | - | 107 | - | 6,051 |
| Divisions | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Metro Cash & Carry |
Real Real |
Media-SaturnMedia-Saturn Media-Saturn |
Galeria Kaufhof Galeria Kaufhof | Real Estate | Other | Consolidation Consolidation |
METRO GROUP METRO GROUP |
|||||||||
| € million | 9M 2010 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 |
| External sales (net) | 22,481 | 22,571 | 8,227 | 8,087 | 14,197 | 14,042 | 2,412 | 2,331 | 0 | 0 | 205 | 201 | 0 | 0 | 47,522 | 47,232 |
| Internal sales (net) | 11 | 13 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4,415 | 4,630 | -4,427 | -4,644 | 0 | 0 |
| Total sales (net) | 22,492 | 22,584 | 8,228 | 8,087 | 14,197 | 14,042 | 2,412 | 2,331 | 0 | 0 | 4,620 | 4,832 | -4,427 | -4,644 | 47,522 | 47,232 |
| EBITDA | 665 | 719 | 118 | 145 | 430 | 351 | 44 | 17 | 682 1 | 809 | -151 | -74 | -14 1 | -12 | 1,774 1 | 1,955 |
| Depreciation/amortisation | 208 | 193 | 159 | 140 | 189 | 194 | 71 | 72 | 303 | 297 | 75 | 90 | 0 | -3 | 1,005 | 984 |
| Write-backs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20 | 1 | 0 | 0 | 5 | 0 | 25 | 1 |
| EBIT | 457 | 527 | -41 | 5 | 241 | 157 | -27 | -55 | 399 | 513 | -226 | -165 | -10 | -9 | 794 | 972 |
| Investments | 224 | 544 | 89 | 122 | 212 | 310 | 49 | 83 | 253 | 232 | 42 | 82 | 0 | 0 | 870 | 1,374 |
| Segment assets | 7,212 | 7,763 | 3,702 | 3,511 | 5,160 | 5,364 | 1,024 | 1,105 | 8,644 | 8,504 | 1,619 | 1,608 | -883 | -772 | 26,478 | 27,083 |
| thereof non-current | 3,721 | 4,199 | 2,472 | 2,397 | 1,745 | 1,837 | 452 | 492 | 8,539 | 8,179 | 580 | 482 | -149 | -142 | 17,359 | 17,443 |
| Segment liabilities | 5,437 | 5,218 | 1,708 | 1,539 | 5,155 2 | 5,372 | 910 | 940 | 509 | 447 | 2,059 | 1,885 | -1,347 | -1,019 | 14,432 2 | 14,383 |
| Selling space (1,000 sqm) | 5,344 | 5,445 | 3,116 | 3,068 | 2,734 | 2,783 | 1,478 | 1,472 | 0 | 0 | 6 | 0 | 0 | 0 | 12,678 | 12,768 |
| Stores (number) | 674 | 713 | 432 | 424 | 851 | 861 | 138 | 140 | 0 | 0 | 9 | 0 | 0 | 0 | 2,104 | 2,138 |
| Western Europe | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Germany | excl. Germany | Eastern Europe | Asia/Africa Asia/Africa |
International | Consolidation | METRO GROUP | ||||||||
| € million | 9M 2010 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 | 9M 2010 | 9M 2011 |
| External sales (net) | 18,281 | 18,040 | 15,228 | 14,826 | 12,004 | 12,130 | 2,009 | 2,237 | 29,241 | 29,192 | 0 | 0 | 47,522 | 47,232 |
| Internal sales (net) | 17 | 53 | 11 | 29 | 0 | 2 | 462 | 531 | 473 | 562 | -491 | -615 | 0 | 0 |
| Total sales (net) | 18,298 | 18,092 | 15,240 | 14,855 | 12,004 | 12,132 | 2,470 | 2,767 | 29,714 | 29,755 | -491 | -615 | 47,522 | 47,232 |
| EBITDA | 392 1 | 389 | 657 1 | 770 | 730 1 | 773 | -6 1 | 19 | 1,381 1 | 1,562 | 1 | 4 | 1,774 1 | 1,955 |
| Depreciation/amortisation | 491 | 462 | 221 | 197 | 261 | 272 | 32 | 53 | 514 | 521 | 0 | 0 | 1,005 | 984 |
| Write-backs | 5 | 0 | 6 | 0 | 10 | 0 | 4 | 1 | 20 | 1 | 0 | 0 | 25 | 1 |
| EBIT | -94 | -73 | 441 | 573 | 479 | 501 | -33 | -33 | 887 | 1,042 | 1 | 4 | 794 | 972 |
| Investments | 343 | 884 | 140 | 145 | 301 | 261 | 86 | 83 | 527 | 489 | 0 | 0 | 870 | 1,374 |
| Segment assets | 11,085 | 11,533 | 7,276 | 6,894 | 7,338 | 7,481 | 1,459 | 1,598 | 16,073 | 15,972 | -681 | -422 | 26,478 | 27,083 |
| thereof non-current | 6,746 | 7,031 | 4,303 | 4,012 | 5,352 | 5,398 | 963 | 1,005 | 10,618 | 10,415 | -4 | -2 | 17,359 | 17,443 |
| Segment liabilities | 6,582 2 | 6,694 | 4,615 2 | 4,453 | 3,116 | 2,885 | 602 | 689 | 8,334 2 | 8,027 | -484 | -338 | 14,432 2 | 14,383 |
| Selling space (1,000 sqm) | 5,902 | 5,804 | 3,043 | 2,993 | 3,181 | 3,388 | 552 | 583 | 6,776 | 6,964 | 0 | 0 | 12,678 | 12,768 |
| Stores (number) | 956 | 939 | 615 | 604 | 452 | 504 | 81 | 91 | 1,148 | 1,199 | 0 | 0 | 2,104 | 2,138 |
| 1 Adjustment due to netting of non-scheduled write-downs and write-ups in EBITDA |
2Adjustment due to reclassification of notes payable
Divisions
Regions
| Metro | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Carry | Real Real |
Media-Saturn Media-Saturn |
Galeria Kaufhof | Real Estate | Other | Consolidation Consolidation |
METRO GROUP METRO GROUP |
|||||||||
| € million | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 |
| External sales (net) | 7,833 | 7,736 | 2,720 | 2,671 | 4,848 | 4,736 | 828 | 776 | 0 | 0 | 70 | 58 | 0 | 0 | 16,299 | 15,977 |
| Internal sales (net) | 3 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,529 | 1,565 | -1,532 | -1,569 | 0 | 0 |
| Total sales (net) | 7,836 | 7,740 | 2,720 | 2,671 | 4,848 | 4,736 | 828 | 776 | 0 | 0 | 1,599 | 1,624 | -1,532 | -1,569 | 16,299 | 15,977 |
| EBITDA | 311 | 316 | 49 | 63 | 187 | 197 | 30 | 12 | 230 1 | 349 | -50 | -35 | -5 1 | -3 | 751 1 | 899 |
| Depreciation/amortisation | 64 | 63 | 47 | 46 | 63 | 69 | 22 | 25 | 100 | 106 | 29 | 29 | 0 | -1 | 325 | 338 |
| Write-backs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| EBIT | 247 | 254 | 1 | 16 | 124 | 128 | 7 | -13 | 130 | 244 | -79 | -64 | -5 | -2 | 425 | 563 |
| Investments | 100 | 95 | 28 | 46 | 99 | 217 | 30 | 50 | 140 | 123 | 18 | 34 | 0 | 0 | 416 | 563 |
| Segment assets | 7,212 | 7,763 | 3,702 | 3,511 | 5,160 | 5,364 | 1,024 | 1,105 | 8,644 | 8,504 | 1,619 | 1,608 | -883 | -772 | 26,478 | 27,083 |
| thereof non-current | 3,721 | 4,199 | 2,472 | 2,397 | 1,745 | 1,837 | 452 | 492 | 8,539 | 8,179 | 580 | 482 | -149 | -142 | 17,359 | 17,443 |
| Segment liabilities | 5,437 | 5,218 | 1,708 | 1,539 | 5,155 1 | 5,372 | 910 | 940 | 509 | 447 | 2,059 | 1,885 | -1,347 | -1,019 | 14,432 1 | 14,383 |
| Selling space (1,000 sqm) | 5,344 | 5,445 | 3,116 | 3,068 | 2,734 | 2,783 | 1,478 | 1,472 | 0 | 0 | 6 | 0 | 0 | 0 | 12,678 | 12,768 |
| Stores (number) | 674 | 713 | 432 | 424 | 851 | 861 | 138 | 140 | 0 | 0 | 9 | 0 | 0 | 0 | 2,104 | 2,138 |
| Western Europe | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Germany | excl. Germany | Eastern Europe | Asia/Africa Asia/Africa |
International | Consolidation | METRO GROUP | ||||||||
| € million | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 | Q3 2010 | Q3 2011 |
| External sales (net) | 6,102 | 6,071 | 5,248 | 5,013 | 4,249 | 4,153 | 699 | 741 | 10,197 | 9,906 | 0 | 0 | 16,299 | 15,977 |
| Internal sales (net) | 5 | 36 | 2 | 18 | 0 | 2 | 214 | 215 | 217 | 236 | -222 | -271 | 0 | 0 |
| Total sales (net) | 6,107 | 6,107 | 5,251 | 5,031 | 4,249 | 4,155 | 914 | 956 | 10,414 | 10,142 | -222 | -271 | 16,299 | 15,977 |
| EBITDA | 154 1 | 157 | 317 1 | 441 | 296 1 | 303 | -13 1 | -2 | 600 1 | 743 | -4 | -1 | 751 1 | 899 |
| Depreciation/amortisation | 151 | 156 | 80 | 69 | 83 | 93 | 11 | 20 | 174 | 182 | 0 | 0 | 325 | 338 |
| Write-backs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | 0 | 0 | 0 | 1 |
| EBIT | 3 | 2 | 238 | 372 | 213 | 210 | -24 | -20 | 426 | 562 | -4 | -1 | 425 | 563 |
| Investments | 142 | 299 | 70 | 75 | 155 | 143 | 50 | 46 | 275 | 264 | 0 | 0 | 416 | 563 |
| Segment assets | 11,085 | 11,533 | 7,276 | 6,894 | 7,338 | 7,481 | 1,459 | 1,598 | 16,073 | 15,972 | -681 | -422 | 26,478 | 27,083 |
| thereof non-current | 6,746 | 7,031 | 4,303 | 4,012 | 5,352 | 5,398 | 963 | 1,005 | 10,618 | 10,415 | -4 | -2 | 17,359 | 17,443 |
| Segment liabilities | 6,582 1 | 6,694 | 4,615 1 | 4,453 | 3,116 | 2,885 | 602 | 689 | 8,334 1 | 8,027 | -484 | -338 | 14,432 1 | 14,383 |
| Selling space (1,000 sqm) | 5,902 | 5,804 | 3,043 | 2,993 | 3,181 | 3,388 | 552 | 583 | 6,776 | 6,964 | 0 | 0 | 12,678 | 12,768 |
| Stores (number) | 956 | 939 | 615 | 604 | 452 | 504 | 81 | 91 | 1,148 | 1,199 | 0 | 0 | 2,104 | 2,138 |
1Adjustment due to reclassification of notes payable
These interim consolidated financial statements as at 30 September 2011 were 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.
With the exception of new or revised standards and interpretations, the same recognition and measurement principles were applied as in the last consolidated financial statements as at 31 December 2010. 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 2010 (see Annual Report 2010, pages 154 – 167).
During the financial year, sales-related and cyclical items are accounted for pro-rata based on corporate planning, where material.
These interim consolidated financial statements were 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. Rounding differences may occur as a result.
In preparing these interim consolidated financial statements, all standards and interpretations published by the International Accounting Standards Board (IASB), which had been adopted by the European Union, were applied. However, the standards and interpretations newly applied in 2011 had no effect on METRO GROUP.
Net profit in financial year 2010 came to €456 million. By resolution of the Annual General Meeting on 6 May 2011, a total of €442 million of this amount was distributed on 9 May 2011, divided into dividends of €1.35 per ordinary share and €1.485 per preference share. The remaining €14 million profit was carried forward to new account.
Media Markt and Saturn acquired a 90% share in Redcoon GmbH, a leading international consumer electronics online retailer as per purchase agreement dated 30 March 2011 for a maximum purchase price of €126 million. Redcoon GmbH currently sells the majority of its goods on the German market. There are also subsidiaries in Austria, Denmark, France, Spain, Italy, the Netherlands and Poland as well as two branches in Portugal and Belgium. By acquiring a pure online retailer, Media-Saturn is implementing its online strategy. The takeover took effect with the fulfilment of the last condition precedent on 14 July 2011. The initial consolidation was carried out in Q3 2011 and the company is therefore now part of the Media-Saturn segment.
Per acquisition date, the fair values (consolidated) of the acquired assets and liabilities amounted to:
| € million | 9M 2011 |
|---|---|
| Assets | |
| Other intangible assets | 40 |
| Tangible assets | 4 |
| Financial assets and receivables | |
| (non-current) | 1 |
| Trade receivables | 28 |
| Receivables and assets (current) | 10 |
| Cash and cash equivalents | 7 |
| 90 | |
| Liabilities | |
| Other provisions (non-current) | 1 |
| Financial liabilities (non-current) | 2 |
| Income tax liabilities | 12 |
| Financial liabilities (current) | 4 |
| Trade liabilities | 25 |
| Other liabilities and provisions (current) | 7 |
No contingent liabilities were assumed within the scope of the acquisition.
The first-time consolidation of Redcoon Group is of a temporary nature as the final purchase price has yet to be determined and the assets and liabilities recognised in the opening balance sheet still have to be measured.
Within the purchase agreement, an offer was made to the non-controlling interest to tender its shares. This sell-out right was recognised as a financial liability together with the cash value of the buyback amount. The company acquisition was correspondingly reported as if all of the shares had been purchased.
The acquisition of Redcoon GmbH and its seven subsidiaries generated €83 million in goodwill.
It also resulted in ancillary purchase price costs of €2 million, which were recognised as expenses.
Since being part of the Group, Redcoon Group contributed €106 million to sales and €-1 million to annual net profit.
If the company had been acquired on 1 January 2011, METRO GROUP's sales would have been €193 million higher and its net profit for the period would have increased by €1 million.
In December 2010, METRO GROUP decided to sell all of its consumer electronics stores in France to the French investor High Tech Multicanal Group SA (HTM Group). From the time of the approval of the sales transaction by the relevant boards of METRO GROUP, all assets and liabilities of the French consumer electronics stores were treated as disposal groups in accordance with IFRS 5 and recognised in the balance sheet items "assets held for sale" and "liabilities related to assets held for sale"
An adjustment of the book values of these assets and liabilities held for sale to the fair value less costs to sell was not necessary.
The French consumer electronics stores were sold to the HTM Group by contractual agreement dated 18 December 2010. The approval of the French anti-trust authority was issued on 10 June 2011.
Following the consolidation of all intra-Group activities, the sale resulted in a €117 million reduction in "assets held for sale" and a €137 million reduction in "liabilities related to assets held for sale", at the time of disposal. The sold assets and liabilities consist of the following items:
| € million | 9M 2011 |
|---|---|
| Assets | |
| Tangible assets | 8 |
| Financial assets (non-current) | 1 |
| Other receivables and assets | |
| (non-current) | 1 |
| Inventories | 71 |
| Trade receivables | 3 |
| Other receivables and assets (current) | 27 |
| Cash and cash equivalents | 6 |
| 117 | |
| Liabilities | |
| Provisions for pensions and | |
| similar commitments | 1 |
| Trade liabilities | 55 |
| Other provisions (current) | 48 |
| Other liabilities (current) | 33 |
| 137 |
The purchase price was determined on a preliminary basis, taking into consideration that Media-Saturn-Holding has provided a guarantee for the recoverability of capitalised loss-carryforwards included in the sale. The sale led to a deconsolidation gain of €27 million, which was recognised in other operating income.
In the segment Media Markt and Saturn, segment assets were reduced by €103 million and segment liabilities by €135 million as a result of the assets and liabilities sold in the context of this divestment.
In the reporting period, METRO GROUP maintained the following business relations to related companies:
| € million | 9M 2010 | 9M 2011 |
|---|---|---|
| Goods/services provided | 1 | 2 |
| Goods/services received | 82 | 51 |
| Receivables from goods/services provided |
0 | 0 |
| Liabilities from goods/services received |
1 | 1 |
| € million | Q3 2010 | Q3 2011 |
| Goods/services provided | 0 | 1 |
| Goods/services received | 27 | 10 |
| Receivables from goods/services provided |
0 | 0 |
Liabilities from goods/services received 1 1 From January to September 2011, METRO GROUP companies provided goods/services totalling €2 million to companies included in the group of related companies.
The goods/services totalling €51 million that METRO GROUP companies received from related compa-
This concerned primarily the granting of lease rights.
nies until 30 September 2011 consisted primarily of property leases. The decline in goods/services received resulted mainly from the termination of rental contracts with related parties respectively from rent reduction in existing lease contracts.
Business relations with related companies are based on contractual agreements and are at arm's length. In the reporting period, METRO GROUP had no business relations with related natural persons.
On 29 July 2011, the Supervisory Board of METRO AG resolved to appoint Heiko Hutmacher as new Chief Human Resources Officer. He was Senior Vice President Human Resources of the Dutch company AkzoNobel until assuming his post at METRO AG on 1 October 2011. The Management Board has been thus expanded from four to five people with his appointment.
| Trading Statement 2011 | Tuesday | 17 January 2012 | 8.00 a.m. |
|---|---|---|---|
| Annual Report 2011 | Tuesday | 20 March 2012 | 8.00 a.m. |
| Analysts' Meeting | Tuesday | 20 March 2012 | 1.00 p.m. |
| Quarterly Financial Report Q1 2012 | Tuesday | 3 May 2012 | 7.15 a.m. |
| Annual General Meeting | Wednesday | 23 May 2012 | 10.30 a.m. |
| Half-Year Financial Report H1/Q2 2012 | Tuesday | 31 July 2012 | 7.15 a.m. |
| Quarterly Financial Report Q3/9M 2012 | Tuesday | 30 October 2012 | 7.15 a.m. |
All time specifications are CET.
Schlüterstraße 1 D 40235 Düsseldorf
PO Box 230361 D 40089 Düsseldorf
http://www.metrogroup.de
3 November 2011
| Phone | +49 211 - 6886 – 1051 |
|---|---|
| Fax | +49 211 - 6886 – 3759 |
| [email protected] |
| Phone | +49 211 - 6886 – 1904 |
|---|---|
| Fax | +49 211 - 6886 – 1916 |
| [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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