CECONOMY AG

Quarterly Report • Nov 3, 2008

Quarterly Financial Report 9M/Q3 2008

METRO Group with solid growth in an increasingly challenging environment

• Group sales grow by 7.1% to €47.8 billion
• Sales in Germany increase further by 2.0% despite store disposals at Real
• International sales grow by 10.6% to €29.3 billion (Western Europe: +3.4%; Eastern Europe: +19.3%)
• EBIT before special items increases by 11.0%
• EPS before special items: +16.2%
• EBIT growth target 2008 remains achievable

Metro Cash & Carry grows by 6.0%; like-for-like sales growth: +2.8%; EBIT +6.3%

Real with strong like-for-like growth: Germany +5.0%; Eastern Europe +12.6%; EBIT improved by €28m

Media Markt and Saturn with earnings decline; Market share gains in difficult environment

Galeria Kaufhof with earnings improvement

Q3 2008

Contents

• 3 Cumulated Overview
• 4 Quarterly Overview
• 5 Interim Group Management Report
• 5 Financial Position and Financial Performance
• 8 Opportunities and Risks
• 8 Subsequent Events and Outlook
• 9 Metro Cash & Carry
• 10 Real
• 11 Media Markt and Saturn
• 12 Galeria Kaufhof
• 13 Store network

14 Interim Consolidated Financial Statements

• 14 Income Statement
• 15 Balance Sheet
• 16 Cash Flow Statement
• 17 Statement of Changes in Equity
• 18 Notes
• 18 Segment Reporting
• 22 Financial Calendar

Cumulated Overview

€ million	9M 2008	9M 2007	Change
Sales	47,848	44,675	7.1%
Germany	18,543	18,178	2.0%
International	29,305	26,497	10.6%
International share of sales	61.2%	59.3%	-
EBITDA	1,635	1,699	-3.8%
EBITDA before special items*	1,838	1,699	8.2%
EBIT	618	770	-19.7%
EBIT before special items*	855	770	11.0%
EBT	260	418	-37.8%
EPS (€)	-0.87	0.07	-
from continuing operations	0.30	0.20	50.0%
from continuing operations before special items*	0.79	0.68	16.2%
from discontinued operations	-1.17	-0.13	-
Capex	1,523	1,287	18.3%
Stores	2,136	2,024	5.5%
Selling space (1,000 sqm)	11,982	11,272	6.3%

* Special items:

Q3 2007 Revaluation of deferred taxes resulting from German corporate tax reform 2007

Q4 2007 Tax effect Extra

Q2 2008 Expenses resulting from streamlining Real's store base

1,644

693

Quarterly Overview

Sales growth (in %)

EBIT before special items* (€ million)

Q1 Q2 Q3 Q4 2007 2008 EPS from continuing operations before special items* (€) 2.09

0.32

0.36

0.33

0.39

605 651

658

EBITDA before special items* (€ million)

443

487

	0.03 0.04
Q1 Q2 Q3 Q4	Q1	Q2	Q3	Q4
2007 2008		2007	2008
€ million	Q3 2008	Q3 2007	Change
Sales	16,343	15,313	6.7%
Germany	6,203	6,055	2.4%
International	10,140	9,258	9.5%
International share of sales	62.0%	60.5%	-
EBITDA	693	651	6.5%
EBIT	361	339	6.3%
EBT	231	196	17.8%
EPS (€)	0.56	-0.21	-
from continuing operations	0.39	-0.15	-
from continuing operations before special items*	0.39	0.33	18.2%
from discontinued operations	0.17	-0.06	-
Capex	706	599	17.8%
Stores	2,136	2,024	5.5%
Selling space (1,000 sqm)	11,982	11,272	6.3%

* Special items:

Q3 2007 Revaluation of deferred taxes resulting from German corporate tax reform 2007

Q4 2007 Tax effect Extra

Q2 2008 Expenses resulting from streamlining Real's store base

Interim Group Management Report

Financial Position and Financial Performance

Sales

In the first nine months 2008 (01/01- 30/09/2008), METRO Group generated sales of €47.8 billion (9M 2007: €44.7 billion). This corresponds to an increase of 7.1% (adjusted for currency effects also 7.1%). Thus, the growth rate exceeded the target of more than 6% growth for the financial year 2008. METRO Group's international share of sales reached 61.2%. In the third quarter 2008 the growth rate was 6.7% and thus below the level of the first half of 2008 (adjusted for currency effects: +6.2%).

In Germany, sales increased from January to September 2008 by 2.0% to €18.5 billion. This sales growth was achieved despite the further scheduled streamlining of Real's store base. In the third quarter the positive business development continued further. Sales increased by 2.4%. Therein included are €83 million sales from the temporary delivery to the divested Extra stores performed by METRO Group's logistics structures. These are included in the segment Other Companies/Consolidation.

International sales grew in the first three quarters by 10.6% to €29.3 billion (adjusted for currency effects: +10.5%). In the third quarter, sales increased by 9.5% (adjusted for currency effects: +8.6%).

Sales in Western Europe (excluding Germany) grew by 3.4% to €14.8 billion (adjusted for currency effects: +4.3%). The business development was affected by an increasingly dampening macroeconomic environment. Especially in Spain and Italy customer demand in the third quarter weakened further.

Business in Eastern Europe continued to develop dynamically. Sales in the first nine months 2008 grew, also due to currency support, by 19.3% to €12.9 billion (adjusted for currency effects: +17.1%). In the third quarter 2008, the high growth rate slowed slightly, but remained on a still very high level of 18.1%.

Sales in Asia/Africa increased in the first nine months by 16.7% to €1.6 billion. Adjusted for currency effects, sales actually increased by 22.2%. In particular, the operations in Vietnam, India and China recorded a good development and also significantly increased their like-for-like sales in the third quarter.

Earnings

EBITDA reached €1.635 million in the first three quarters 2008. Therein included are €203 million expenses from the streamlining of Real's German store base (Real: €-223 million; Other Companies/Consolidation: €+20 million) as resolved in the second quarter. Adjusted for this special item, EBITDA grew in the first nine months by 8.2% to €1,838 million.

In the third quarter, EBITDA was €693 million following prior year's €651 million.

METRO Group's EBIT decreased in the first nine months to €618 million (9M 2007: €770 million) due to a special item. This special item comprised a €237 million expense for the streamlining of Real's store base. Of which, €224 million are attributed to Real and €13 million to the segment Other Companies/Consolidation. Adjusted for this special item, EBIT amounted to €855 million. This corresponds to an increase of 11.0% compared to 9M 2007.

In the third quarter 2008, EBIT increased by 6.3% to €361 million. In comparison to the growth rate of the EBIT before special items in the first half of 2008, EBIT growth was lower. This mainly resulted from the earnings development at Media Markt and Saturn, as well as from the segment Other

Companies/Consolidation, which last year included €27 million proceeds from active real estate portfolio management.

In the first nine months 2008, the financial result came in almost on last year's level at €-358 million (9M 2007: €-352 million).

In the third quarter 2008, the financial result improved from €-143 million to €-130 million. This improvement was attributed to last year's negative currency effects in the quarter.

EBT in the first nine months amounted to €260 million following €418 million in 9M 2007. EPS from continuing operations was €0.30 after €0.20 € in 9M 2007.

Adjusted for special items, EPS from continuing operations increased clearly from €0.68 to €0.79. Hereby, last year's result was adjusted for the one-off tax expense resulting from the German corporate tax reform.

In the third quarter 2008, EBT came in at €231 million and was 17.8% above prior year's level. Due to the change in disclosure of Adler from continued operations in the second quarter to discontinued operations in the third quarter, a calculative tax expense of €74 million was incurred. The resulting tax rate was around 32% and thus in line with last year's level.

EPS from continuing operations was €0.39 (Q3 2007: €-0.15; €0.33 before special items). EPS before special items increased by 18.2%. Hereby, last year's result was adjusted to for the one-off tax expense resulting from the German corporate tax reform.

Capex

METRO Group's capex from January to September 2008 amounted to €1,523 million following €1,287 million in 9M 2007.

Store network

In the first nine months 2008, 57 stores were opened – thereof 22 in the third quarter.

Metro Cash & Carry's store network was extended by eleven stores in the first nine months 2008. Real opened seven hypermarkets. Media Markt and Saturn opened 39 new consumer electronics stores.

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

As at the end of September 2008, METRO Group operated 2,136 stores.

A detailed view on the business development of the individual sales divisions is shown on pages 9 to 12.

Discontinued operations

The decision to accelerate the sale of Adler has led to this business being no longer disclosed within the segment Other Companies/Consolidation. As a result, Adler, together with Extra, is disclosed as discontinued operations. METRO Group's financials and the segments Real and Other Companies/Consolidation have been adjusted for the figures of the Extra sales brand and the Adler fashion stores. The prior year's financials – with the exception of the balance sheet – have been adjusted accordingly. Further information on the discontinued operations can be found in the notes to the segment report.

In the first nine months, EBIT from discontinued operations amounted to €-282 million. Included therein are non-cash effective expenses attributed to Adler to the amount of €375 million (of which, €312 million goodwill impairment) and € 130 million result from the disposal of Extra.

Funding

METRO Group's short- and medium-term funding comprises typical capital markets' permanent issuance programmes. Among these are the "Euro Commercial Paper Programme" started in 1999, and the "Commercial Paper Programme" specifically geared to French investors. The drawdown on both programmes in the reporting period amounted to an average €2.7 billion. Furthermore, as an alternative to Commercial Paper, undrawn, perennial syndicated bank credit facilities with durations of up to five years exist to the amount of €3.2 billion. As at 30 September 2008 utilised bilateral bank credit facilities amounted to €1.8 billion.

Within the "Debt Issuance Programme", which serves as a source of long-term financing, METRO Group redeemed a nominal volume totalling €1.0 billion in the first quarter. Furthermore, a €500 million promissory note loan was issued. The premature refinancing of a €975 million syndicated bank loan due in November 2008 took place far-sightedly in the first quarter. The next maturity date for outstanding bonds is October 2009.

Debt maturity profile as at 30 September 2008

Balance sheet

Total assets decreased by €2.6 billion to €31.3 billion compared to 31/12/2007. The change is attributed to the decrease in cash and cash equivalents compared to 2007 year-end closing.

As at the end of September 2008, METRO Group's balance sheet disclosed €5.8 billion equity. The equity ratio declined from 19.2% to 18.7%.

After netting cash and cash equivalents, as well as bank deposits, with financial liabilities (including finance leases), net debt totalled to €8.0 billion compared with €4.3 billion as at 31/12/2007. This increase against the prior year-end closing in net debt is characteristic and resulted mainly from the reduction in trade payables of €3.8 billion. The reason behind this reduction lies in the high share sales in the fourth quarter contribute to the full year, which regularly corresponds to high trade payables at the year-end closing. Year-on-year, net debt as at 30 September hardly changed.

Cash flow

A €2.7 billion cash outflow from operating activities resulted from January to September 2008 (9M 2007: €1.4 billion).

Investing activities led to cash outflows of €0.8 billion (9M 2007: €0.7 billion). Cash inflow from financing activities amounted to €1.3 billion (9M 2007: €1.2 billion).

Opportunities and Risks

In the period under review, changes arose from the reported opportunities and risks concerning the ongoing development of the METRO Group as described in detail in the Annual Report 2007 (pp. 68-71) due to the general dampening of the macroeconomic environment in the regions wherein METRO Group operates, as well as due to the capital market development. All in all, it can be assumed that the risks for the short- and medium-term development of the retail sector, and consequently for METRO Group, have increased.

Risks that could endanger the company's existence are however neither presently existent nor foreseeable in future.

Subsequent Events and Outlook

Events after the quarter-end closing

To sustainably improve the sales and earnings development at Metro Cash and Carry Germany, a comprehensive repositioning programme has been initiated. This includes in addition to an intensified focus on the professional customers, also measures to improve efficiency and reduce cost.

Outlook

We plan to consistently follow our profitable growth path. However, it is difficult to ascertain the impact of the global financial crisis on sales, procurement and financing. Nevertheless, we intend to further strengthen our position as one of the leading international retailers, also in future.

In the context of our strategy of profitable growth, METRO Group projects sales growth of more than 6% for the Group during the current financial year 2008. To this end, the Group plans to open about 40 new Metro Cash & Carry stores, more than 70 Media Markt and Saturn stores as well as around 15 Real hypermarkets. On the base of prior year's EBIT of €2,078 million, the 2008 EBIT growth target before special items (6 to 8%) remains achievable. Expenses resulting from the streamlining of Real Germany's store network are not included therein.

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

	9M 2008	9M 2007		Change (in %)				Change
	€ million	€ million	total	lfl		9M 2008	9M 2007	(in %)
Sales	23,903	22,541	6.0	3.2	EBITDA (€ million)	952	908	4.8
					EBIT (€ million)	646	606	6.7
Germany	4,070	4,063	0.2	-0.8	Capex (€ million)	645	506	27.6
Western Europe	9,122	9,071	0.6	-0.1	Stores (number)	626	592	5.7
Eastern Europe	9,307	8,177	13.8	8.5	Selling space (1,000 sqm)	4,963	4,579	8.4
Asia/Africa	1,404	1,230	14.2	5.9	Employees at closing date (full-time basis)	109,763	104,180	5.4

Metro Cash & Carry

Sales in the first nine months at Metro Cash & Carry grew by 6.0% to €23.9 billion. Adjusted for currency effects, sales growth increased by 6.7%. Like-for-like sales grew by 3.2%. Especially the first half of 2008 was influenced by positive price effects resulting from higher procurement prices.

Sales in Germany increased slightly from January to September 2008. Also like-forlike sales in the third quarter 2008 increased slightly.

In Western Europe sales increased in the first nine months by 0.6% to €9.1 billion (excluding currency effects: +2.0%). The business development in the third quarter continued as it had in the first half 2008. Like-for-like sales came in slightly below last year's level due to negative currency effects. Again, France showed satisfactory growth.

Sales in Eastern Europe in the first nine months significantly increased further by 13.8% to €9.3 billion (excluding currency effects: +13.1%). Like-for-like sales growth amounted to 8.5%. Thereby, non-food in the third quarter showed a declining development.

Sales in Asia/Africa grew considerably in the first nine months by 14.2% to €1.4 billion (excluding currency effects: 20.3%). Particularly China showed an aboveaverage development.

The international share of sales increased from 82.0% to 83.0%.

EBITDA in the first nine months 2008 was €952 million following €908 million in 9M 2007. EBIT developed slightly better than sales and grew by 6.7% to €646 million.

Capex for the expansion and for the modernisation of the store network amounted from January to September 2008 to €645 million (9M 2007: €506 million). The store network was enlarged by eleven stores. In Russia three stores were opened, in Ukraine two stores and in Germany, Greece, Poland, Bulgaria, India and Pakistan one store each.

Metro Cash & Carry operates in total 626 stores in 29 countries, thereof 123 in Germany, 257 in Western Europe, 185 in Eastern Europe and 61 in Asia/Africa.

	Q3 2008	Q3 2007		Change (in %)				Change
	€ million	€ million	total	lfl		Q3 2008	Q3 2007	(in %)
Sales	8,248	7,784	6.0	2.8	EBITDA (€ million)	340	324	5.1
					EBIT (€ million)	237	222	6.3
Germany	1,374	1,353	1.6	0.3	Capex (€ million)	316	250	26.3
Western Europe	3,105	3,090	0.5	-0.3	Stores (number)	626	592	5.7
Eastern Europe	3,303	2,930	12.7	7.1	Selling space (1,000 sqm)	4,963	4,579	8.4
Asia/Africa	466	411	13.4	4.3	Employees at closing date (full-time basis)	109,763	104,180	5.4

Real

	9M 2008	9M 2007		Change (in %)				Change
	€ million	€ million	total	lfl		9M 2008	9M 20071)	(in %)
Sales	8,341	7,789	7.1	6.7	EBITDA (€ million)	-1742)	-26	-
					EBIT (€ million)	-3173)	-149	-
Germany	6,284	6,238	0.7	4.5	Capex (€ million)	205	228	-10.1
					Stores (number)	432	427	1.2
Eastern Europe	2,057	1,551	32.6	13.0	Selling space (1,000 sqm)	3,100	3,063	1.2
					Employees at closing date (full-time basis)	57,499	54,881	4.8

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

2) EBITDA before special items: €49 million

3) EBIT before special items: €-93 million

Sales at Real increased by 7.1% to €8.3 billion (excluding currency effects: +6.0%) between January and September 2008. Like-for-like sales also rose significantly by 6.7% year-on-year. Positive price effects resulting from higher procurement prices contributed to the sales growth, but lessened in the course of the third quarter.

Sales in Germany in the first nine months amounted to €6.3 billion and were slightly above prior year's level. This sales level was reached despite eleven stores having been sold on respectively closed down in the past twelve months. The positive likefor-like sales development continued further in the third quarter with a growth rate of 5.0%. This development again was supported by a higher average ticket as well as an increase in customer frequency. Using the slogan "The new brand for Germany" the private label brand "Real Quality" with more than 600 products was introduced at the end of September. A large-scale marketing campaign backed this further consequent step in repositioning Real. So far customer reaction to the new private labels was exceedingly positive.

Business in Eastern Europe continued its very successful development in the first nine months 2008. Sales grew by 32.6% to €2.1 billion (adjusted for currency effects: 26.4%). All countries, apart from Turkey, showed like-for-like sales growth.

The international share of sales grew significantly from 19.9% to 24.7%

EBITDA in the first nine months 2008 amounted to €-174 million after €-26 million in 9M 2007. Included therein are €223 million expenses incurred in the second quarter resulting from the scheduled streamlining of Real's store base. Real's EBIT amounted to €-317 million after €-149 million in 9M 2007. Adjusted for special items, EBIT was €-93 million. On the back of the good like-for-like sales development, EBIT improved significantly by €28 million to €-32 million in the third quarter.

Capex from January to September 2008 totalled €205 million (9M 2007: €228 million). In Germany, ten stores were closed down. In Poland, Romania and Germany two stores each and in Russia one hypermarket were opened.

At the end of September 2008 the store network comprised 432 stores, thereof 342 in Germany and 90 in Eastern Europe.

	Q3 2008	Q3 2007		Change (in %)				Change
	€ million	€ million	total	lfl		Q3 2008	Q3 20071)	(in %)
Sales	2,777	2,557	8.6	7.2	EBITDA (€ million)	16	-17	-
					EBIT (€ million)	-32	-60	46.4
Germany	2,053	2,005	2.4	5.0	Capex (€ million)	87	78	12.5
					Stores (number)	432	427	1.2
Eastern Europe	724	552	31.1	12.6	Selling space (1,000 sqm)	3,100	3,063	1.2
					Employees at closing date (full-time basis)	57,499	54,881	4.8

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

Media Markt and Saturn
		Change (in %)

	9M 2008	9M 2007		Change (in %)				Change
	€ million	€ million	total	lfl		9M 2008	9M 2007	(in %)
Sales	12,714	11,558	10.0	-1.7	EBITDA (€ million)	429	400	7.3
					EBIT (€ million)	253	247	2.5
Germany	5,746	5,477	4.9	0.8	Capex (€ million)	274	266	3.4
Western Europe	5,460	5,020	8.8	-6.4	Stores (number)	737	658	12.0
Eastern Europe	1,507	1,061	42.1	8.5	Selling space (1,000 sqm)	2,333	2,046	14.0
					Employees at closing date (full-time basis)	54,822	49,488	10.8

Sales at Media Markt and Saturn increased in the first nine months by 10.0% to €12.7 billion (excluding currency effects: +9.3%). Like-for-like sales declined by 1.7%.

Sales in Germany increased by 4.9% to €5.7 billion. After a very strong second quarter and against last year's high comparable base, the third quarter showed a decreasing like-for-like sales development.

From January to September 2008, sales in Western Europe grew by 8.8% (excluding currency effects: +8.7%) to €5.5 billion. In a continuously challenging environment, Media Markt and Saturn continued to aggressively strengthen their market position in the third quarter. As a result market leadership in Spain was achieved despite the strongly declining market. The difficult market situation was reflected in a like-for-like sales decrease of 8.3% in the third quarter 2008.

In Eastern Europe sales grew in the first nine months 2008 by 42.1% to €1.5 billion (excluding currency effects: +32.9%). Likefor-like sales in the third quarter were substantially supported by positive currency effects.

The international share of sales increased from 52.6% to 54.8%.

EBITDA improved in the first nine months from €400 million to €429 million. EBIT increased by 2.5% to €253 million. Against the backdrop of declining like-for-like sales, EBIT in the third quarter reached, €117 million (Q3 2007: €125 million).

Capex in the store network from January to September 2008 amounted to €274 million (9M 2007: €266 million).

The store network was enlarged by 35 stores (39 new store openings and four closures). Both in Italy and Germany, two consumer electronics stores were closed down in the course of optimisation and store relocation measures. In Germany ten stores and in Spain six stores were opened. Both in Italy and Poland four openings took place. The store network in the Netherlands and Turkey was extended by three stores each. In Austria, France, Portugal and Sweden two stores each were opened. In Greece the store base grew by one store.

At the end of the third quarter 2008 the store network of Media Markt and Saturn comprised 737 stores in 15 countries, thereof 361 in Germany, 285 in Western Europe and 91 in Eastern Europe.

	Q3 2008	Q3 2007		Change (in %)				Change
	€ million	€ million	total	lfl		Q3 2008	Q3 2007	(in %)
Sales	4,272	4,025	6.1	-3.4	EBITDA (€ million)	177	174	1.2
					EBIT (€ million)	117	125	-6.2
Germany	1,893	1,887	0.3	-1.3	Capex (€ million)	127	134	-5.0
Western Europe	1,845	1,757	5.0	-8.3	Stores (number)	737	658	12.0
Eastern Europe	534	381	40.2	10.0	Selling space (1,000 sqm)	2,333	2,046	14.0
					Employees at closing date (full-time basis)	54,822	49,488	10.8

Galeria Kaufhof

	9M 2008	9M 2007		Change (in %)				Change
	€ million	€ million	total	lfl		9M 2008	9M 2007	(in %)
Sales	2,377	2,411	-1.4	-1.5	EBITDA (€ million)	35	30	16.0
					EBIT (€ million)	-43	-48	10.5
Germany	2,148	2,185	-1.7	-1.8	Capex (€ million)	75	72	4.9
Western Europe	229	226	1.4	2.3	Stores (number)	141	141	-
					Selling space (1,000 sqm)	1,487	1,481	0.4
					Employees at closing date (full-time basis)	18,592	18,343	1.4

Sales at Galeria Kaufhof in the first nine months 2008 declined slightly by 1.4% to €2.4 billion. In the third quarter 2008 the business development improved and sales reached the level of last year's quarter.

In Germany, Galeria Kaufhof was able to partially distance itself from the declining textile market. Sales in the third quarter 2008 declined only slightly.

In the first nine months, sales in Belgium grew by 1.4% to €229 million.

The international share of sales grew from 9.4% to 9.6%.

EBITDA at Galeria Kaufhof amounted to €35 million following €30 million in 9M 2007. EBIT reached €-43 million after €-48 million in 9M 2007. Once again, EBIT in the third quarter 2008 was positive as was the case last year. Amongst the driving elements for the earnings improvement were the further execution of the trading-up strategy on the back of an improved inventory management as well as the more efficient deployment of resources.

Capex in the store network in the first nine months was €75 million (9M 2007: €72 million).

As at 30 September 2008, the store network of Galeria Kaufhof comprised 141 stores, thereof 126 in Germany and 15 in Belgium, and remained unchanged at the year-end 2007 number.

	Q3 2008	Q3 2007		Change (in %)				Change
	€ million	€ million	total	lfl		Q3 2008	Q3 2007	(in %)
Sales	813	814	-0.1	-0.7	EBITDA (€ million)	33	29	14.7
					EBIT (€ million)	7	4	90.2
Germany	736	738	-0.3	-1.1	Capex (€ million)	35	40	-13.5
Western Europe	78	77	1.5	3.1	Stores (number)	141	141	-
					Selling space (1,000 sqm)	1,487	1,481	0.4
					Employees at closing date (full-time basis)	18,592	18,343	1.4

Store network as at 30 September 2008

	Metro Cash & Carry	Real	Media Markt and Saturn	Galeria Kaufhof	Other	Total
Germany	123	342	361	126	197	1,149
Austria	12		33		3	48
Belgium	10		14	15		39
Denmark	5					5
France	89		27			116
Italy	48		90			138
Netherlands	16		30			46
Portugal	10		9			19
Spain	34		54			88
Sweden			10			10
Switzerland			18			18
UK	33					33
Western Europe	257		285	15	3	560
Bulgaria	9					9
Croatia	6					6
Czech Republic	12					12
Greece	9		8			17
Hungary	13		20			33
Moldova	3					3
Poland	27	52	46			125
Romania	23	16				39
Russia	42	11	11			64
Serbia	5					5
Slovakia	5					5
Turkey	11	11	6			28
Ukraine	20					20
Eastern Europe	185	90	91			366
China	37					37
India	4					4
Japan	3					3
Morocco	7					7
Pakistan	2					2
Vietnam	8					8
Asia/Africa	61					61
Total	626	432	737	141	200	2,136

Interim Consolidated Financial Statements

Income Statement

€ million	9M 20081)	9M 20072)	Q3 2008	Q3 20072)
Net sales	47,848	44,675	16,343	15,313
Cost of sales	-37,975	-35,609	-12,969	-12,191
Gross profit on sales	9,873	9,066	3,374	3,122
Other operating income	1,023	1,053	360	377
Selling expenses	-9,144	-8,293	-2,977	-2,793
General administrative expenses	-1,066	-991	-371	-347
Other operating expenses	-68	-65	-25	-20
EBIT	618	770	361	339
Result from associated companies	0	0	0	0
Other investment result	1	2	0	2
Interest income	140	141	51	57
Interest expenses	-501	-486	-183	-180
Other financial result	2	-9	2	-22
Net financial income	-358	-352	-130	-143
EBT	260	418	231	196
Income taxes	-83	-285	-74	-216
Income from continuing operations	177	133	157	-20
Income from discontinued operations after taxes	-382	-42	57	-20
Net profit for the period	-205	91	214	-40
allocable to minorities	79	68	31	28
allocable to shareholders of METRO AG	-284	23	183	-68
from continuing operations	98	65	126	-48
from discontinued operations	-382	-42	57	-20
Earnings per share (€)	-0.87	0.07	0.56	-0.21
from continuing operations	0.30	0.20	0.39	-0.15
from discontinued operations	-1.17	-0.13	0.17	-0.06

1) includes special items according to p. 5 and p. 10

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

Balance Sheet

Assets	30/09/2008	30/09/20071)	31/12/2007
€ million
Non-current assets	18,946	18,801	18,882
Goodwill	4,025	4,399	4,328
Other intangible assets	527	487	515
Tangible assets	12,589	12,289	12,332
Investment properties	140	112	116
Financial assets	142	110	152
Other receivables and assets	479	485	490
Deferred tax assets	1,044	919	949
Current assets	12,366	11,878	14,990
Inventories	6,805	6,634	7,328
Trade receivables	387	456	508
Financial assets	9	16	28
Other receivables and assets	3,276	2,643	3,076
Entitlements to income tax refunds	405	297	275
Cash & cash equivalents	1,220	1,832	3,433
Assets held for sale	264	-	342
	31,312	30,679	33,872
Equity and Liabilities	30/09/2008	30/09/20071)	31/12/2007
€ million
Equity	5,845	5,744	6,509

Equity	5,845	5,744	6,509
Capital Stock	835	835	835
Additonal paid-in capital	2,544	2,544	2,544
Reserves retained from earnings	2,178	2,113	2,876
Minority interests	288	252	254
Non-current liabilities	7,664	8,573	7,357
Provisions for pensions and similar commitments	966	987	973
Other provisions	565	506	524
Financial liabilities	5,255	6,186	5,030
Other liabilities	642	612	647
Deferred tax liabilities	236	282	183
Current liabilities	17,803	16,362	20,006
Trade payables	10,318	10,113	14,088
Provisions	528	627	576
Financial liabilities	4,516	3,685	2,708
Other liabilities	1,967	1,854	2,267
Income tax liabilities	213	83	337
Liabilities related to assets held for sale	261	-	30
	31,312	30,679	33,872

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

Cash Flow Statement

€ million	9M 2008	9M 20071)
EBIT	618	770
Depreciation and amortisation on tangible, intangible assets and goodwill	1,017	929
Change in provisions for pensions and other provisions	1	-126
Change in net working capital	-3,282	-2,289
Income taxes paid	-518	-399
Other	-496	-253
Cash flow from operating activities of continuing operations	-2,660	-1,368
Cash flow from operating activities of discontinued operations	6	68
Total cash flow from operating activities	-2,654	-1,300
Aquisition of Wal Mart	-	186
Investments in tangible assets (excl. finance leases)	-1,325	-1,174
Other investments	-168	-129
Divestment of Extra	467	9
Disposals of fixed assets	235	411
Cash flow from investing activities of continuing operations	-791	-697
Cash flow from investing activities of discontinued operations	-5	-40
Total cash flow from investing activities	-796	-737
Profit distribution
METRO AG shareholders	-386	-366
other shareholders	-47	-46
Change of financial debts	2,050	1,838
Interest paid	-488	-476
Interest received	140	140
Profit and loss transfers and other financing activities	-10	82
Cash flow from financing activities of continuing operations	1,259	1,172
Cash flow from financing activities of discontinued operations	-27	-36
Total cash flow from financing activities	1,232	1,136
Total cash flows	-2,218	-901
Exchange rate effects on cash and cash equivalents	2	1
Overall change in cash and cash equivalents	-2,216	-900
Cash and cash equivalents on 1 January	3,442	2,732
Cash and cash equivalents on 30 September	1,226	1,832
less cash and cash equivalents from discontinued operations as per 30 September	6	22
Cash and cash equivalents from continuing operations as per 30 September	1,220	1,810

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

Statement of Changes in Equity

€ million	Capital Stock	Additional paid-in capital	Reserves retained from earnings	Total	Minorities	Total equity
01/01/2007	835	2,544	2,454	5,833	217	6,050
Net profit for the period	-	-	23	23	68	91
Profit distribution	-	-	-366	-366	-45	-411
Remeasurement IAS 39	-	-	20	20	-	20
Currency translation	-	-	-21	-21	1	-20
Other	-	-	3	3	11	14
30/09/2007	835	2,544	2,113	5,492	252	5,744
01/01/2008	835	2,544	2,876	6,255	254	6,509
Net profit for the period	-	-	-284	-284	79	-205
Profit distribution	-	-	-386	-386	-47	-433
Remeasurement IAS 39	-	-	-20	-20	-	-20
Currency translation	-	-	-8	-8	1	-7
Other	-	-	-	-	1	1
30/09/2008	835	2,544	2,178	5,557	288	5,845

Notes

Segment Reporting 9M 2008

Sales Divisions

		Continuing Group Operations
	Metro				Media Markt					Other Companies/
	Cash & Carry			Real	and Saturn		Galeria Kaufhof			Consolidation	METRO Group
€ million		9M 2008 9M 20071)		9M 2008 9M 20071)	9M 2008	9M 2007	9M 2008	9M 2007		9M 2008 9M 20071)		9M 2008 9M 20071)
External sales (net)	23,903	22,541	8,341	7,789	12,714	11,558	2,377	2,411	512	376	47,848	44,675
Internal sales (net)	4	2	1	1	2	7	4	11	-11	-20	-	-
Total sales (net)	23,907	22,543	8,342	7,790	12,716	11,565	2,381	2,421	502	356	47,848	44,675
EBITDA	952	908	-174	-26	429	400	35	30	393	387	1,635	1,699
Depreciation/amortisation	306	303	143	124	176	153	78	78	314	272	1,017	929
EBIT	646	606	-317	-149	253	247	-43	-48	79	115	618	770
Investments	645	506	205	228	274	266	75	72	323	217	1,523	1,287
Segment assets	12,717	12,037	5,020	4,249	5,306	4,874	1,461	1,237	2,668	3,776	27,171	26,172
Segment liabilities	5,809	5,657	2,555	2,306	4,139	4,023	1,208	994	774	1,057	14,485	14,038
Employees at closing date
(full-time equivalents)	109,763	104,180	57,499	54,881	54,822	49,488	18,592	18,343	13,093	12,509	253,769	239,401
Selling space (in 1,000 sqm)	4,963	4,579	3,100	3,063	2,333	2,046	1,487	1,481	99	102	11,982	11,272
Stores (number)	626	592	432	427	737	658	141	141	200	206	2,136	2,024

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

Continuing Group Operations before special item at Real

	Metro					Media Markt					Other Companies/
	Cash & Carry		Real		and Saturn		Galeria Kaufhof		Consolidation		METRO Group
€ million	9M 2008	9M 2007	9M 2008	9M 2007	9M 2008	9M 2007	9M 2008	9M 2007	9M 2008	9M 2007	9M 2008	9M 2007
EBITDA	952	908	491)	-26	429	400	35	30	3743)	387	1,838	1,699
EBIT	646	606	-932)	-149	253	247	-43	-48	924)	115	855	770

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

2) adjusted for €-224 million expenses resulting from streamlining Real's store base 3) adjusted for €+20 million expenses resulting from streamlining Real's store base

4) adjusted for €-13 million expenses resulting from streamlining Real's store base

Regions

						Continuing Group Operations
			Western Europe
	Germany		excl. Germany			Eastern Europe	Asia / Africa		Consolidation			METRO Group
€ million		9M 2008 9M 20071)	9M 2008	9M 2007		9M 2008 9M 20071)	9M 2008	9M 2007	9M 2008	9M 2007		9M 2008 9M 20071)
External sales (net)	18,543	18,178	14,812	14,318	12,872	10,790	1,621	1,389	-	-	47,848	44,675
Internal sales (net)	10	7	3	2	1	0	593	542	-606	-551	-	-
Total sales (net)	18,552	18,185	14,814	14,320	12,873	10,790	2,214	1,931	-606	-551	47,848	44,675
EBITDA	384	550	451	556	802	593	0	-2	-1	3	1,635	1,699
Depreciation/amortisation	523	468	229	231	238	203	26	27	0	1	1,017	929
EBIT	-139	82	222	325	563	391	-26	-29	-1	2	618	770
Investments	503	477	259	258	659	489	101	63	-	-	1,523	1,287
Segment assets	12,837	12,733	9,190	8,746	8,272	6,783	1,193	990	-4,321	-3,080	27,171	26,172
Segment liabilities	6,899	6,701	4,274	4,362	3,678	3,085	500	435	-866	-545	14,485	14,038
Employees at closing date
(full-time equivalents)	99,436	99,020	52,748	51,133	85,313	75,071	16,272	14,177	-	-	253,769	239,401
Selling space
(in 1,000 sqm)	6,051	6,015	2,839	2,659	2,648	2,200	445	397	-	-	11,982	11,272
Stores (number)	1,149	1,148	560	512	366	310	61	54	-	-	2,136	2,024

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

Continuing Group Operations before special item at Real
			Western Europe
	Germany		excl. Germany		Eastern Europe			Asia / Africa	Consolidation		METRO Group
€ million	9M 2008	9M 2007	9M 2008	9M 2007	9M 2008	9M 2007	9M 2008	9M 2007	9M 2008	9M 2007	9M 2008	9M 2007
EBITDA	5871)	550	451	556	802	593	0	-2	-1	3	1838	1699
EBIT	982)	82	222	325	563	391	-26	-29	-1	2	855	770

1) adjusted for €-203 million expenses resulting from streamlining Real's store base 2) adjusted for €-237 million expenses resulting from streamlining Real's store base

Segment Reporting Q3 2008

Sales Divisions

		Continuing Group Operations
	Metro				Media Markt					Other Companies/
	Cash & Carry			Real	and Saturn		Galeria Kaufhof		Consolidation		METRO Group
€ million		Q3 2008 Q3 20071)		Q3 2008 Q3 20071)	Q3 2008	Q3 2007	Q3 2008	Q3 2007		Q3 2008 Q3 20071)		Q3 2008 Q3 20071)
External sales (net)	8,248	7,784	2,777	2,557	4,272	4,025	813	814	232	133	16,343	15,313
Internal sales (net)	1	1	0	0	0	2	1	2	-2	-5	-	-
Total sales (net)	8,249	7,785	2,778	2,557	4,272	4,028	814	816	230	128	16,343	15,313
EBITDA	340	324	16	-17	177	174	33	29	128	142	693	651
Depreciation/amortisation	104	101	48	43	60	50	26	25	95	93	332	312
EBIT	237	222	-32	-60	117	125	7	4	33	49	361	339
Investments	316	250	87	78	127	134	35	40	141	98	706	599
Segment assets	12,717	12,037	5,020	4,249	5,306	4,874	1,461	1,237	2,668	3,776	27,171	26,172
Segment liabilities	5,809	5,657	2,555	2,306	4,139	4,023	1,208	994	774	1,057	14,485	14,038
Employees at closing date	109,763	104,180	57,499	54,881	54,822	49,488	18,592	18,343	13,093	12,509	253,769	239,401
(full-time equivalents)
Selling space	4,963	4,579	3,100	3,063	2,333	2,046	1,487	1,481	99	102	11,982	11,272
(in 1,000 sqm)
Stores (number)	626	592	432	427	737	658	141	141	200	206	2,136	2,024

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

Regions

						Continuing Group Operations
			Western Europe
	Germany		excl. Germany			Eastern Europe	Asia / Africa		Consolidation		METRO Group
€ million		Q3 2008 Q3 20071)	Q3 2008	Q3 2007		Q3 2008 Q3 20071)	Q3 2008	Q3 2007	Q3 2008	Q3 2007		Q3 2008 Q3 20071)
External sales (net)	6,203	6,055	5,028	4,924	4,561	3,864	551	470	-	-	16,343	15,313
Internal sales (net)	3	2	1	1	0	0	244	222	-247	-225	-	-
Total sales (net)	6,206	6,057	5,029	4,925	4,562	3,864	794	692	-247	-225	16,343	15,313
EBITDA	183	211	201	216	312	226	-3	-1	0	-1	693	651
Depreciation/amortisation	164	157	77	76	82	69	9	9	0	1	332	312
EBIT	19	54	125	139	230	157	-12	-10	0	-1	361	339
Investments	222	181	100	146	348	244	35	27	-	-	706	599
Segment assets	12,837	12,733	9,190	8,746	8,272	6,783	1,193	990	-4,321	-3,080	27,171	26,172
Segment liabilities	6,899	6,701	4,274	4,362	3,678	3,085	500	435	-866	-545	14,485	14,038
Employees at closing date	99,436	99,020	52,748	51,133	85,313	75,071	16,272	14,177	-	-	253,769	239,401
(full-time equivalents)
Selling space	6,051	6,015	2,839	2,659	2,648	2,200	445	397	-	-	11,982	11,272
(in 1,000 sqm)
Stores (number)	1,149	1,148	560	512	366	310	61	54	-	-	2,136	2,024

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

Information on discontinued operations 9M 2008

	Discontinued Group Operations
€ million	9M 2008	9M 2007
External sales (net)	1,056	1,511
Internal sales (net)	-	-
Net sales	1,056	1,511
EBITDA	43	-1
Depreciation/amortization	325	24
EBIT	-282	-25
Investments	13	35
Segment assets	205	837
Segment liabilities	174	125
Employees at closing date
(full-time basis)	3,430	9,653
Selling space
(in 1,000 sqm)	309	748
Stores (number)	129	377

Information on discontinued operations Q3 2008

	Discontinued Group Operations
€ million	Q3 2008	Q3 2007
External sales (net)	101	487
Internal sales (net)	-	-
Net sales	101	487
EBITDA	161	-8
Depreciation/amortization	5	8
EBIT	156	-16
Investments	3	12
Segment assets	205	837
Segment liabilities	174	125
Employees at closing date
(full-time basis)	3,430	9,653
Selling space (in 1,000 sqm)	309	748
Stores (number)	129	377

Notes to Group Accounting Principles and Methods

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

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

From 2008 on, commissions in relation to customer transactions or similar proceeds are now included in net sales. The restatement is not profit-relevant and the prior year has been adjusted accordingly. The prior year adjustment in the first nine months 2008 amounts to €174 million for the Group (Q3 2007: €126 million), of which €168 million is attributed to Media Markt and Saturn (Q3 2007: €124 million).

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

The current interim consolidated financial statements apply the accounting standards and interpretations newly introduced by the IASB which were adopted by the Council of the European Commission (cf. METRO Group's Annual Report 2007, p. 118). The application of these accounting standards had neither an impact on METRO Group's financial position and financial performance, nor on METRO Group's cash flows.

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

Notes to related parties

Up until 30 September 2008 companies that are included in the circle of related companies rendered goods/services to the amount of €89 million to METRO Group companies. These consist primarily of leasing services. Up until 30 September 2008 METRO Group companies rendered goods/services to the amount of €2 million to companies that are included in the circle of related companies. All business relations with related companies are based on contractual agreements and conform to market conditions. In the reporting period, METRO Group had no business relations with related natural persons.

METRO Group

Schlueterstrasse 1 40235 Duesseldorf Germany

PO Box 230361 40089 Duesseldorf Germany

Investor Relations

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

Creditor Relations

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

Corporate Communications

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

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

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

Disclaimer

This Quarterly Financial 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 synergies and the actions of government regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this 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.

Financial Calendar

Tuesday, 13 January 2009, 8.00 am

Trading Statement 2008

Tuesday, 24 March 2009

8.00 am Annual Report 2008 14.00 am Analysts' Meeting

Tuesday, 5 May 2009, 7.15 am

Quarterly Financial Report Q1 2009

Wednesday, 13 May 2009, 10.30 am

Annual General Meeting