Quarterly Report • May 24, 2012
Quarterly Report
Open in ViewerOpens in native device viewer
| 3 | Overview Q1 |
|---|---|
| 4 | Metro Share |
| 5 | Interim Group Management Report |
| 5 | Macroeconomic Conditions |
| 5 | Financial Position and Financial Performance |
| 7 | Opportunities and Risks |
| 7 | Sustainability |
| 7 | Subsequent Events and Outlook |
| 9 | Metro Cash & Carry |
| 11 | Real |
| 12 | Media-Saturn |
| 13 | Galeria Kaufhof |
| 15 | Real Estate and Other |
| 16 | Store Network |
| 17 | Reconciliation of Special Items |
| 18 | Interim Consolidated Financial Statements |
| 18 | Income Statement |
| 19 | Total Comprehensive Income Reconciliation |
| 20 | Balance Sheet |
| 21 | Cash Flow Statement |
| 22 | Statement of Changes in Equity |
| 23 | Notes |
| 23 | Segment Reporting |
| 24 | Other |
27 Financial Calendar and Imprint
METRO GROUP sales increase by 2.2% (+2.6% in local currency)
Metro Cash & Carry, Real and Galeria Kaufhof all with like-for-like sales growth
Sales in Germany grow by 1.6%
International sales grow by 2.6% (Western Europe: -1.2%; Eastern Europe: +3.5%; Asia/Africa: +21.3%)
EBIT before special items amounts to €-9 million (Q1 2011: €145 million)
Significant sales increase of 3.7% Like-for-like sales in Germany grow notably by 3.8% Also strong like-for-like sales in Eastern Europe Dynamic growth continues in Asia
Sales +2.3% Significant like-for-like sales growth in Germany of 4.8% Positive development in Eastern Europe in local currency
Sales +0.4% Germany grows thanks to online sales Eastern Europe grows significantly Online sales of €166 million
Sales +0.9% Sales growth in Germany and Belgium
Earnings on previous year's level
(€)
| € million | Q1 2011 | Q1 2012 | Change (€) | Change (LC) | |
|---|---|---|---|---|---|
| Sales | 15,307 | 1) | 15,647 | 2.2% | 2.6% |
| Germany | 5,950 | 1) | 6,047 | 1.6% | 1.6% |
| International | 9,357 | 1) | 9,600 | 2.6% | 3.2% |
| Western Europe (excl. Germany) | 4,754 | 1) | 4,695 | -1.2% | -1.6% |
| Eastern Europe | 3,818 | 1) | 3,954 | 3.5% | 6.6% |
| Asia/Africa | 784 | 1) | 952 | 21.3% | 15.2% |
| International share of sales | 61.1% | 1) | 61.4% | - | |
| EBITDA | 465 | 2) | 306 | -34.3% | |
| EBIT | 145 | 2) | -9 | - | |
| EBT | 25 | 2) | -134 | - | |
| Net profit for the period | 16 | 2) | -81 | - | |
| EPS (€) | 0.00 | 2) | -0.25 | - | |
| Capex | 211 | 219 | 3.8% | ||
| Stores | 2,149 | 2,202 | 2.5% | ||
| Selling space (1,000 sqm) | 12,808 | 13,011 | 1.6% | ||
| Employees (full-time basis) | 249,386 | 248,554 | -0.3% |
1) Revised disclosure in 2011 (see Notes)
2) 2011 before special items
The METRO AG share price rose by 2.8% over the course of Q1 2012 to €28.99. The performance of the METRO AG share therefore remains down on that of both the German DAX and the sector benchmark index, Dow Jones Euro Stoxx Retail. The trading statement announced in mid-January and the publication of the consolidated financial statements on 20 March 2012 were in line with expectations and therefore had no positive effect on the share price. The uncertainty in many key markets in which METRO GROUP is active resulted in a wait-and-see atti-
tude of investors. Furthermore, the capital markets' overall view of the food retail sector weakened. As a result, a number of analysts have also reduced their target prices for the Metro share.
The Annual General Meeting to be held in Düsseldorf on 23 May 2012 will propose a dividend to shareholders of €1.35 per ordinary share. This would correspond to a dividend yield of 4.7% on the closing share price for the quarter.
| 2010 | 2011 | Q1 2012 | ||
|---|---|---|---|---|
| Closing prices (€) | Ordinary share | 53.88 | 28.20 | 28.99 |
| Preference share | 36.09 | 24.16 | 26.98 | |
| High prices (€) | Ordinary share | 58.53 | 55.91 | 31.18 |
| Preference share | 40.89 | 39.24 | 27.50 | |
| Low prices (€) | Ordinary share | 37.28 | 27.39 | 27.22 |
| Preference share | 32.00 | 22.43 | 24.21 | |
| Market capitalisation (€ billion) | 17.6 | 9.2 | 9.5 |
Data based on XETRA closing prices
| Performance comparison of Metro ordinary share vs DAX vs Dow Jones Euro Stoxx Retail | |||
|---|---|---|---|
| 31/12/2010 | 31/12/2011 | 31/03/2012 | |
| vs 31/12/2009 | vs 31/12/2010 | vs 31/12/2011 | |
| METRO GROUP | 26.6% | -47.7% | 2.8% |
| DAX | 16.1% | -14.7% | 17.8% |
| Dow Jones Euro Stoxx Retail | 13.7% | -15.9% | 6.6% |
Source: Bloomberg
The global economic downturn, which already began in the second half of last year, continued in Q1 2012. Economic growth was again weak in the first few months of the year. In general, Q1 was marked by economic uncertainty. This was still mainly due to the sovereign debt crisis in the Eurozone, despite the progress made in implementing bailout measures.
The economic slowdown, coupled with continued consolidation measures to stabilise public debts, weighed on disposable incomes and consumers' purchasing power. In addition to VAT increases in some countries, consumers were also burdened by continuing high prices, especially for energy and fuels. At the same time, unemployment in many European countries rose once more, impairing consumer confidence in the process. The worsening conditions at the beginning of the year also impacted the wholesale and retail industry. However, positive calendar effects supported sales in Q1.
Not even Germany could continue to escape the effects of the European debt crisis, despite strong economic growth of 3% in 2011. Current estimates show that the German economy stagnated in Q1 following a contraction at the end of 2011. Seasonally adjusted, the positive labour market development continued, meaning that consumer sentiment remained relatively unaffected by the economic downturn. Conversely, consumers were impacted by record petrol and diesel prices. Overall, retail sales remained stable year on year also thanks to calendar effects in 2012.
At the beginning of 2012, numerous countries in Western Europe were in or on the brink of a recession. Both the worsening sovereign debt crisis and the growing efforts to consolidate government budgets had an increasing effect on the real economy. The divergence between robust core countries and financially unstable, peripheral countries continued. As a result, the overall retail sales development was also very heterogeneous.
Similar to Western Europe, high heterogeneity in the economic development continued in Eastern Europe. In light of worsening economic conditions, Poland and Russia in particular posted a solid performance. In contrast, Turkey lost momentum following two strong years. The economic situation in Bulgaria, Croatia, Serbia and Hungary in particular remained challenged. Also the situation in Greece continued to be difficult. Consumers in Hungary and the Czech Republic were hit by VAT hikes at the beginning of the year.
Despite a slight slowing in economic growth, the Asian emerging markets again posted the strongest growth worldwide in Q1. Retail sales momentum also remained comparatively high. Despite an economic deceleration, China, for example, continued to post double-digit retail sales growth.
From January to March 2012, METRO GROUP generated sales of €15.6 billion, up 2.2% year-on-year (Q1 2011: €15.3 billion). In local currency, METRO GROUP sales were even up 2.6% on the previous year. The development in Q1 2012 benefited from positive calendar effects in comparison to Q1 2011.
Sales in Germany in Q1 2012 grew by 1.6% to €6.0 billion. Food sales in particular grew strongly also thanks to the positive calendar effects.
International sales grew by 2.6% to €9.6 billion from January to March 2012 and were impacted by negative currency effects, while in local currency international sales climbed by as much as 3.2%. The international share of sales rose from 61.1% to 61.4%.
Sales in Western Europe (excluding Germany) in Q1 2012 fell by 1.2% to €4.7 billion (in local currency: -1.6%) and were mainly impacted by the previous year's disposal of Media-Saturn France.
From January to March 2012, sales in Eastern Europe grew by 3.5% to €4.0 billion and sales in local currency even rose by a significant 6.6%.
Sales in Asia/Africa in Q1 2012 saw a marked rise of 21.3% to €1.0 billion. In local currency, sales grew by 15.2%.
Further progress was again made in Q1 2012 with regard to productivity gains within the scope of the efficiency and value enhancing Shape 2012 programme. Metro Cash & Carry delivery sales rose by more than 50% to €504 million (Q1 2011: €325 million). METRO GROUP's own brand sales amounted to €1.7 billion, after €1.5 billion in the previous year. Sales in the promising online business grew to €178 million due to the acquisition of Redcoon (Q1 2011: €26 million).
EBITDA in Q1 2012 amounted to €306 million (Q1 2011: €464 million). The figure for the previous year included Shape 2012 special items of €1 million. An overview of the special items is shown on page 17; these relate in particular to expenses incurred for restructuring measures.
EBIT in Q1 decreased to €-9 million (Q1 2011: €142 million). There were no one-off expenses (Q1 2011: €3 million), meaning that EBIT before special items also amounted to €-9 million (Q1 2011: €145 million). Earnings were impacted by extensive price investments, particularly at Media-Saturn, as well as higher expansion costs and expenses to improve customer value. Some of this negative impact on earnings was offset by the improved likefor-like sales development.
The net financial result in Q1 2012 amounted to €-125 million (Q1 2011: €-120 million). In 2011, a €27 million book gain was realised from the sale of the remaining stake in Loyalty Partner. The interest result only changed slightly to €-132 million (Q1 2011: €-131 million). The other financial result increased significantly, from €-16 million to €6 million, due to currency effects.
EBT in Q1 2012 amounted to €-134 million (Q1 2011: €22 million). Adjusted for special items, EBT was also €-134 million (Q1 2011: €25 million). EPS amounted to €-0.25, after €-0.01 in Q1 2011.
METRO GROUP's capex in Q1 2012 amounted to €219 million (Q1 2011: €211 million).
In Q1 2012, 15 new stores were opened and four closed or sold.
From January to March 2012, Metro Cash & Carry opened eight new stores. For the first time, four Metro Cash & Carry stores in Pakistan are included as part of the joint venture. These were not counted as new store openings.
Real disposed of one hypermarket in Germany.
Media-Saturn opened six stores and closed three.
In Q1 2012, Galeria Kaufhof opened one "Wanderzeit" branded store in Germany.
As at the end of March 2012, METRO GROUP operated a total of 2,202 stores.
A detailed presentation on the business development of the individual divisions is given on pages 9 to 15.
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 from which bonds are issued. The maximum programme volume amounts to €6 billion and was drawn down by around €4.3 billion as at 31 March 2012 (Q1 2011: €4.5 billion).
As previously announced, the bonds and note loans totalling approximately €1.1 billion that reach maturity this year were refinanced in full in Q1 2012 by a number of private placements, a promissory note (Schuldscheindarlehen) and EUR- and CHF-denominated bonds. This allowed METRO GROUP to secure all refinancing for 2012 early on and significantly improve its maturity profile.
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 March 2012 averaged €0.6 billion (Q1 2011: €0.1 billion).
In addition, METRO GROUP has bilateral and syndicated credit facilities amounting to €4.7 billion with durations up to 2017. As at 31 March 2012, the drawdown thereof was €1.5 billion (31 March 2011: €1.6 billion). €3.2 billion in bilateral and syndicated credit lines, with maturities exceeding one year, were not drawn down.
Total assets decreased by €2.0 billion to €32.0 billion compared to 31 December 2011. This is mainly due to the decrease in cash and cash equivalents typical for Q1 in comparison to the year-end closing.
As at 31 March 2012, METRO GROUP's balance sheet disclosed €6.4 billion equity. Due to the balance sheet contraction, the year-to-date equity ratio increased significantly from 18.9% to 20.1%.
Net debt, after netting cash and cash equivalents, as well as bank deposits, with financial liabilities (including fi-
nance leases), totalled €7.4 billion compared to €4.1 billion as at 31 December 2011. This increase in net debt against the prior year-end closing is characteristic and resulted mainly from the €3.5 billion reduction in trade payables. The reason for this reduction lies in the high share of sales Q4 contributes to the full year, which regularly corresponds to high trade payables at the year-end closing, which are then reduced over the course of Q1. Net debt went up by €0.2 billion to €7.4 billion compared to 31 March 2011.
From January to March 2012, cash outflow from operating activities amounted to €2.9 billion (Q1 2011: €3.3 billion cash outflow). This reflects the seasonal increase in net working capital. However, this increase was significantly less than in Q1 2011.
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 in the previous year. Overall, cash outflow amounted to €0.3 billion (Q1 2011: €0.2 billion cash outflow).
Cash flow before financing activities improved to €-3.2 billion (Q1 2011: €-3.5 billion).
Cash inflow from financing activities amounted to €1.8 billion (Q1 2011: €0.4 billion cash inflow). The increase was due to all financing for the year being secured in Q1 2012.
Since the preparation of the Annual Report (27 February 2012), no changes arose from the reported opportunities and risks concerning the ongoing development of METRO GROUP as described in detail in the Annual Report 2011 (pp. 158 − 174).
There are no risks that could endanger the company's existence and at present, none can be identified for the future.
In the study "Germany's Top Employers 2012" published in March, the CRF Institute distinguished METRO GROUP for its excellent and modern human resources management. Consequently, METRO GROUP is one of the 118 employers that offer particularly good working conditions to their employees.
Expenses in the low double-digit million Euros range are expected in the Other segment from the planned cessation of operations at a MGL METRO GROUP Logistics location by the end of 2013 at the very latest.
Uncertainty about future economic development remains high. The economic situation in Western and Eastern Europe is also marked by the different development amongst individual countries in 2012. More VAT increases will come into effect in Italy and France during the course of the year (October 2012). Growth rates among the Asian emerging markets remain comparatively high despite the economic slowdown. Overall, economic growth worldwide is likely to be down on that seen in 2011.
The economic situation worsened in 2011 largely as a result of the sovereign debt crisis. For this reason, we expect continued economic instability to dampen consumer confidence.
The persistently difficult economic situation and the slowing price increases will most likely have a negative impact on sales in 2012. On the other hand, all sales divisions are taking a number of steps designed to boost sales. For this reason, we foresee an increase in sales in 2012.
METRO GROUP's strategy aims for sustainable growth in sales and earnings.
In 2012, the earnings development will be dampened by the continuing difficult economic situation. In 2012, METRO GROUP will continue to invest in its competitiveness. This will include both productivity steps from the Shape 2012 programme and targeted price investments. In addition, we intend to lay a foundation from which we can accelerate our expansion activities, an effort that will also create additional costs. We nonetheless expect EBIT before special items to roughly match the previous year's result (EBIT 2011 before special items: €2,372 million). It should be noted, though, that a forecast issued at this time includes an element of risk in light of the problems described above and the uncertain economic situation.
Based on the development in Q1 2012 and in light of a focussed and disciplined investment programme, METRO GROUP expects the cash flow development to be significantly better in financial year 2012 than in 2011. As a result, net debt is expected to decline.
In the financial year 2012, METRO GROUP plans to inv e s t €1.8 billio n and open aro und 100 new stores. The ori ginal plan had been for i nvestments of €2.0 b illion and mo r e than 100 new store o penings.
| 2012 | |
|---|---|
| Inv estments ( € billion) |
1 8 |
| New sto re openings |
~ 1 0 0 |
| Sales growth | >0 % |
| Earnings (before special items, € billion) | ~2.4 |
| Sales | Change | Currency | Change | lfl | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| € million | (€) | effects | (local currency) | (local currency) | |||||||
| Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | ||
| 1) Total |
7,023 | 7,284 | 1.1% | 3.7% | 0.7% | -0.2% | 0.4% | 3.9% | -0.7% | 2.0% | |
| 1) Germany |
1,138 | 1,147 | -5.6% | 0.9% | 0.0% | 0.0% | -5.6% | 0.9% | -2.1% | 3.8% | |
| Western Europe (excl. Germany) | 2,577 | 2,572 | -1.8% | -0.2% | 0.3% | 0.2% | -2.1% | -0.4% | -2.1% | -0.8% | |
| Eastern Europe1) | 2,547 | 2,650 | 2.9% | 4.0% | 1.1% | -2.5% | 1.8% | 6.5% | -2.2% | 3.1% | |
| Asia/Africa | 762 | 914 | 19.0% | 20.0% | 3.3% | 6.0% | 15.7% | 14.0% | 13.9% | 5.3% |
1) Revised disclosure in 2011 (see Notes)
From January to March 2012, sales at Metro Cash & Carry grew considerably by 3.7% to €7.3 billion (in local currency: +3.9%). This was mainly due to dynamic developments in Eastern Europe and Asia. Like-for-like sales increased by a noticeable 2.0%, especially in Germany and Asia, with Eastern Europe also seeing an improvement. This was due to further productivity gains and a more attractive price profile as well as positive calendar effects.
Delivery sales grew very strongly to €504 million (Q1 2011: €325 million). The delivery business was successfully expanded in the eight so-called focus countries in particular (China, Germany, France, Italy, Poland, Russia, Spain and Turkey). Own brands also continued to grow dynamically. The share of own brand sales grew significantly by 2.1 percentage points to 16.5% (Q1 2011: 14.4%). This was mainly due to higher margin own brand products, which are tailored to the needs of our customer groups (Rioba, Fine Food, H-Line, HoReCa Select and Sigma).
In Germany, sales generated in Q1 2012 grew by 0.9% to €1.1 billion. Strong like-for-like sales growth of 3.8% more than offset the decline in sales from the optimisation of the store network (Q4 2011: 10 closures). This encouraging sales performance was also due to higher customer frequency.
Destination categories, especially ultra-fresh products, posted further sales growth. The measures implemented for non-food products showed first signs of success with a very positive sales development.
In February, a new regional delivery hub started operations in Hamburg-Altona, which will serve all delivery customers in the northern Hamburg region in the future. The Hamburg logistics platform is the third German regional delivery hub in addition to the ones in Weiterstadt and Essen.
In order to increase competence in freshness, targeted investments were made to optimise logistics structures. In January 2012, Metro Cash & Carry and MGL METRO GROUP Logistics brought a central hub for meat into operations near Frankfurt. In the future, this new logistics platform will handle an important part of the destination category fresh meat and strengthen the competitive edge in fresh.
Despite difficult macroeconomic conditions, sales in Western Europe in Q1 2012 were almost on par with the previous year at €2.6 billion (in local currency: -0.4%). Like-for-like sales declined slightly by 0.8%. Against the backdrop of an overall declining market, market shares were won in Spain and Italy. In France, like-for-like sales even continued to post encouraging growth, underscoring the strength of the Metro Cash & Carry concept.
Sales in Eastern Europe in Q1 2012 grew dynamically by 4.0% to €2.7 billion despite the ongoing difficult macroeconomic environment. In local currency, sales increased by as much as 6.5%. Like-for-like sales also increased significantly by 3.1%. In Russia, the exceptional like-forlike sales growth continued.
Metro Cash & Carry successfully launched in a further country, Romania, its franchise programme for independent retailers. This long-term partnership allows Metro Cash & Carry to strengthen the competitiveness of small traders in a way that benefits both sides. Similar programmes also exist in Poland and Bulgaria.
From January to March 2012, sales in Asia/Africa grew by 20.0% to €0.9 billion (in local currency: +14.0%). Sales increased in all countries, with China in particular seeing growth continue, including like-for-like sales growth.
The international share in sales generated during Q1 2012 increased from 83.8% to 84.2%.
| $\epsilon$ million | Q1 2011 | Q1 2012 | Change |
|---|---|---|---|
| EBITDA | 92 | 39 | $-58.0%$ |
| EBITDA before special items | 96 | 39 | $-59.3%$ |
| FRIT | クワ | $-26$ | |
| EBIT before special items | 31 | -26 | |
| Capex | 34 | 5 | .93% |
| 31/12/2011 | 31/03/2012 | Change | |
|---|---|---|---|
| Stores | 728 | 740 | |
| Selling space (1,000 sqm) | 5.517 | 5.564 | +4. |
| Employees (full-time basis) | 116.408 | 113.719 | -7.689 |
In Q1 2012, EBITDA dec reased by €53 millio n to €39 million (Q1 2011: €92 million).
EBIT in Q1 2012 decreased by €53 million to €-26 million due to the developme nt of f urther functio ns to improv e c u s tomer value , e xpenses for reorgan i s a t ion as well as price i nvestm ents. The resul t was a lso impacte d by hig h e r expan sion cos ts. The EBIT d ecline was offs e t in par t by the positive eff e c t from the impro ved like-for-like sales dev elopment. Special items were not incurred in Q1. As a result, EBIT before special items also amounted to €-26 million (Q1 2011: €31 mil lion).
Capex from January to March 2012 for the expansion and modernisation amounted to €51 millio n (Q1 2011: €34 million). I n thi s period, Metro Cas h & Carry opened eight stores, two in b oth China and Kaz akhs tan, and one each i n Polan d, Rus sia, I ndia and Vietnam. For the firs t time, four M etro Cas h & Carry stores in Pakista n are included as part of the joint venture. These were not counted as n e w store openi n gs.
As at 31 March 2012, Metro Cash & Carry operated 740 stores i n 3 0 countri es, thereof 107 i n Germany, 260 in Western Europe, 272 in E astern E urope and 101 i n Asia/Africa.
| Sales € million |
Change (€) |
Currency effects |
Change (local currency) |
lfl (local currency) |
|||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | ||
| 1) Total |
2,605 | 2,664 | -3.5% | 2.3% | 0.1% | -1.2% | -3.6% | 3.5% | -2.8% | 3.5% | |
| 1) Germany |
1,896 | 1,968 | -4.2% | 3.8% | 0.0% | 0.0% | -4.2% | 3.8% | -2.3% | 4.8% | |
| Eastern Europe | 709 | 696 | -1.8% | -1.8% | 0.2% | -4.3% | -2.0% | 2.6% | -4.2% | -0.1% |
1) Revised disclosure in 2011 (see Notes)
In Q1 2012, sales at Real increased by 2.3% to €2.7 billion (in local currency: +3.5%) due also to positive calendar effects as well as a higher average ticket.
In Germany, sales increased significantly by 3.8% to €2.0 billion during Q1. Like-for-like sales even increased by 4.8%. Consequently, Real outperformed the overall market. The "Funky Beans" promotional campaign had a very positive effect on the sales development. Higher customer frequency and positive non-food sales development also contributed to this growth. The attractiveness of the Real brand continued to rise in Q1. 87 attractive concept modules were implemented to strengthen the brand further.
The Real online shop continued to grow dynamically. The number of orders in Q1 2012 was more than twice that in Q1 2011.
Sales in Eastern Europe in Q1 2012 decreased by 1.8% to €0.7 billion. Conversely, sales in local currency grew by 2.6%. Like-for-like sales were on par with the previous year. Sales in Russia increased significantly; like-for-like sales almost saw double-digit percentage growth. In the still challenging Polish market, the sales development improved also thanks to the measures implemented.
The international share in sales generated during Q1 2012 decreased from 27.2% to 26.1%.
| € million | Q1 2011 | Q1 2012 | Change |
|---|---|---|---|
| EBITDA | 25 | 22 | -12.6% |
| EBITDA before special items | 23 | 22 | -4.7% |
| EBIT | -21 | -23 | -9.7% |
| EBIT before special items | -23 | -23 | 0.1% |
| Capex | 51 | 22 | -56.5% |
| 31/12/2011 | 31/03/2012 | Change | |
|---|---|---|---|
| Stores | 426 | 425 | -1 |
| Selling space (1,000 sqm) | 3,082 | 3,065 | -17 |
| Employees (full-time basis) | 52,214 | 51,190 | -1,024 |
In Q1 2012, EBITDA fell to €22 million (Q1 2011: €25 million).
EBIT amounted to €-23 million, almost on par with the previous year (€-21 million). EBIT before special items remained unchanged against the previous year at €-23 million. A decline in EBIT in Eastern Europe was offset by the sales-driven rise in earnings in Germany.
Capex in Q1 2012 amounted to €22 million (Q1 2011: €51 million). One store was disposed of in Germany.
As at 31 March 2012, the store network comprised 425 stores in six countries, thereof 315 in Germany and 110 in Eastern Europe.
| Sales € million |
Change (€) |
Currency effects |
Change (local currency) |
lfl (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | |
| Total | 4,965 | 4,983 | 0.8% | 0.4% | 0.8% | -0.2% | 0.0% | 0.5% | -4.0% | -3.1% |
| Germany | 2,254 | 2,265 | 1.8% | 0.5% | 0.0% | 0.0% | 1.8% | 0.5% | 0.4% | -3.7% |
| Western Europe (excl. Germany) | 2,131 | 2,076 | -2.3% | -2.6% | 1.6% | 0.6% | -3.9% | -3.2% | -8.3% | -4.2% |
| Eastern Europe | 562 | 607 | 6.5% | 8.1% | 0.8% | -4.3% | 5.7% | 12.4% | -5.7% | 3.9% |
| Asia | 18 | 35 | - | 93.8% | - | 15.7% | - | 78.1% | - | n.a. |
Although the overall market remained difficult in Q1 2012, sales at Media-Saturn rose by 0.4% to €5.0 billion (in local currency: +0.5%). The sales development was impacted by the previous year's sale of Media-Saturn France. The sales development in February and March continued to improve following a promotion-related weak start in January. Online sales continued to grow dynamically. Sales climbed from €19 million to €166 million due to the acquisition of Redcoon and the successful launches of the German multichannel offerings by Media Markt and Saturn. All in all, Media-Saturn's Q1 development underscores its leading market position in Europe.
In Germany, sales in Q1 2012 grew by 0.5% to €2.3 billion, while like-for-like sales fell by 3.7%. Sales dove in January due to the withdrawal of extensive marketing activities at the beginning of the year (2011: Saturn's 50th anniversary, 1,000 products at purchase prices at Media Markt). However, the weak start to the year was offset in part in February and March thanks to a significant sales upturn. This was also due to the dynamic online sales growth, which amounted to €83 million. Additionally, the measures initiated to sharpen the price profile also continued to bear fruit. The range of own brand products was expanded and enjoyed increasing popularity.
Media Markt launched its online shop on 16 January 2012. Media Markt, Saturn and Redcoon now have their own online retailing presence in Germany. Multichannel offerings are particularly important here. A high in-store pickup rate underscores the attractiveness of this unique multichannel offering.
In Q1 2012, sales decreased by 2.6% in Western Europe, primarily due to the sale of Media-Saturn France (in local currency: -3.2%). Like-for-like sales dropped by 4.2%. The difficult economic environment continues to have a significant impact on demand for consumer electronics, particularly in Southern Europe. In this market environment, Media-Saturn was able to increase its market shares. Sales, including like-for-like sales, developed very strongly in the Netherlands and Sweden. Online retailing in Western Europe did very well, generating sales of €78 million. In the Netherlands, the online offering has now been extended to more than 8,000 articles.
In Eastern Europe, sales in Q1 2012 increased significantly by 8.1% to €0.6 billion (in local currency: +12.4%), with like-for-like sales growing by 3.9%. The positive sales trend in Poland continued. Overall sales in local currency even rose by more than 10%. Also sales in Russia continued to perform well, with growth of more than 20% and like-for-like sales also seeing double-digit growth.
Sales in Asia almost doubled thanks to the opening of additional pilot stores. Demand for large domestic appliances fell due to the end of state subsidies.
The international share in sales generated during Q1 2012 fell slightly from 54.6% to 54.5%.
| € million | Q1 2011 | Q1 2012 | Change |
|---|---|---|---|
| EBITDA | 127 | 46 | -63.6% |
| EBITDA before special items | 128 | 46 | -63.9% |
| EBIT | 65 | -20 | - |
| EBIT before special items | 66 | -20 | - |
| Capex | 35 | 38 | 8.6% |
| 31/12/2011 | 31/03/2012 | Change | |
|---|---|---|---|
| Stores | 893 | 896 | +3 |
| Selling space (1,000 sqm) | 2,880 | 2,902 | +22 |
| Employees (full-time basis) | 58,660 | 56,300 | -2,360 |
In Q1 2012, EBITDA amounted to €46 million (Q1 2011: €127 million).
EBIT fell to €-20 million (Q1 2011: €65 million). This was due to the sales-related fall in earnings, the measures initiated to further sharpen the price profile and lower advertising subsidies as well as higher expansion costs (including in China) and costs to expand the multichannel business. As there were no special items, EBIT before special items also amounted to €-20 million (Q1 2011: €66 million).
Capex in the store network amounted to €38 million in Q1 2012 (Q1 2011: €35 million). Six stores were opened in the period from January to March 2012, thereof three in Germany, two in Italy and one in Sweden. Two stores were closed in Spain and one in Portugal.
At the end of Q1 2012, the store network of Media Markt and Saturn comprised 896 stores in 16 countries, thereof 392 in Germany, 344 in Western Europe, 153 in Eastern Europe and seven in Asia.
| Sales € million |
Change | lfl | ||||
|---|---|---|---|---|---|---|
| Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | |
| 1) Total |
699 | 705 | -5.6% | 0.9% | -3.9% | 0.1% |
| 1) Germany |
653 | 659 | -6.3% | 0.8% | -4.8% | -0.1% |
| 1) Western Europe (excl. Germany) |
46 | 47 | 4.5% | 2.2% | 4.4% | 2.2% |
1) Revised disclosure in 2011 (see Notes)
In Q1 2012, sales at Galeria Kaufhof rose by 0.9% to €0.7 billion; like-for-like sales were up slightly on Q1 2011. Over the course of the quarter, sales grew dynamically after a slow start to the year due to weather conditions. The categories womenswear, accessories and hardlines in particular showed an encouraging development.
Sales at Galeria Kaufhof in Germany in the period from January to March 2012 grew by 0.8% to €0.7 billion; likefor-like sales were almost on par with Q1 2011.
The improved sales space allocation for high-margin categories accessories, textiles and shoes, continued to be rolled out.
The upgraded online shop, which now also includes textiles, enjoyed increasing popularity; sales doubled against Q1 2011.
In Western Europe, sales from January to March 2012 grew by 2.2% and benefited from a good development in textiles. In like-for-like terms, sales grew also by 2.2%.
In mid-January 2012, METRO GROUP suspended talks with interested parties for the takeover of Galeria Kaufhof until further notice. METRO GROUP will work on further enhancing the value of Galeria Kaufhof. This decision will not change the existing portfolio strategy of METRO GROUP.
| € million | Q1 2011 | Q1 2012 | Change |
|---|---|---|---|
| EBITDA | -4 | 2 | - |
| EBITDA before special items | -4 | 2 | - |
| EBIT | -27 | -24 | 13.4% |
| EBIT before special items | -27 | -24 | 13.4% |
| Capex | 14 | 16 | 14.2% |
| 31/12/2011 | 31/03/2012 | Change | |
|---|---|---|---|
| Stores | 140 | 141 | +1 |
| Selling space (1,000 sqm) | 1,475 | 1,480 | +5 |
| Employees (full-time basis) | 19,257 | 17,948 | -1,309 |
In Q1 2012, EBITDA amounted to €2 million (Q1 2011: €-4 million).
Thanks to an improved sales development, EBIT in Q1 2012 rose to €-24 million (Q1 2011: €-27 million). This more than offset the increase in write-downs due to the extensive refurbishments. EBIT before special items also amounted to €-24 million (Q1 2011: €-27 million).
From January to March 2012, capex in the store network amounted to €16 million (Q1 2011: €14 million).
One Wanderzeit store was opened in Q1 2012. This new special concept now has four stores and offers an attractive equipment and clothing assortment centred on hiking on sales area of around 500 sqm .
As at 31 March 2012, the store network of Galeria Kaufhof comprised 141 stores, thereof 126 in Germany and 15 in Belgium.
| € million | Q1 2011 | Q1 2012 | Change |
|---|---|---|---|
| EBITDA | 236 | 221 | -6.0% |
| EBITDA before special items | 231 | 221 | -4.4% |
| EBIT | 139 | 136 | -2.0% |
| EBIT before special items | 136 | 136 | -0.3% |
| Capex | 61 | 68 | 11.4% |
| 31/12/2011 | 31/03/2012 | Change |
Employees (full-time basis) 1,215 1,299 +84
| Other | |
|---|---|
| -- | ------- |
| € million | Q1 2011 | Q1 2012 | Change |
|---|---|---|---|
| Sales 1) | 15 | 10 | -30.8% |
| EBITDA | -7 | -24 | - |
| EBITDA before special items | -5 | -24 | - |
| EBIT | -38 | -53 | -40.4% |
| EBIT before special items | -36 | -53 | -47.4% |
| Capex | 16 | 24 | 55.3% |
1) Revised disclosure in 2011 (see Notes)
| 31/12/2011 | 31/03/2012 | Change | |
|---|---|---|---|
| Employees (full-time basis) | 7,900 | 8,098 | +198 |
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, active asset- and portfolio management, as well as the optimised resource deployment are to secure and systematically enhance the value of real estate in the long run.
As at 31 March 2012, METRO GROUP owned 687 properties (31 December 2011: 687).
In Q1 2012, EBITDA came in at €221 million (Q1 2011: €236 million). EBITDA before special items fell from €231 million to €221 million. These earnings mainly constitute rental income paid by METRO GROUP's divisions. EBIT was €136 million compared to €139 million in Q1 2011. EBIT before special items remained unchanged at €136 million. Lower rental income as a result of store disposals was offset by new store openings and rental increases from indexation.
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.
In Q1 2012, sales in the segment Other totalled €10 million (Q1 2011: €15 million). Sales mainly included the commission from third-party business via METRO GROUP's procurement organisation in Hong Kong. Lower order volumes from some key accounts significantly reduced sales in comparison to Q1 2011.
In Q1 2012, EBIT fell to €-53 million (Q1 2011: €-38 million). EBIT before special items decreased from €-36 million to €-53 million. This EBIT-decline was due, among other things, to higher project costs in connection with the expansion of the Shared Service Centres as well as onetime expenses relating to the reduction of METRO AG's Management Board.
| Metro Cash & Carry |
Real | Media-Saturn | Galeria Kaufhof | METRO GROUP | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | 31/03/12 | Q1 | 31/03/12 | Q1 | 31/03/12 | Q1 | 31/03/12 | Q1 | 31/03/12 | |
| Germany | 107 | -1 | 315 | +3 | 392 | +1 | 126 | +3 | 940 | |
| Austria | 12 | 44 | 5 6 |
|||||||
| Belgium | 11 | 21 | 15 | 4 7 |
||||||
| Denmark | 5 | 5 | ||||||||
| France | 92 | 92 | ||||||||
| Italy | 48 | +2 | 112 | +2 | 160 | |||||
| Luxemburg | 2 | 2 | ||||||||
| Netherlands | 17 | 38 | 5 5 |
|||||||
| Portugal | 11 | -1 | 9 | -1 | 20 | |||||
| Spain | 34 | -2 | 66 | -2 | 100 | |||||
| Sweden | +1 | 25 | +1 | 25 | ||||||
| Switzerland | 27 | 27 | ||||||||
| United Kingdom | 30 | 30 | ||||||||
| Western Europe | 260 | 344 | 15 | 619 | ||||||
| Bulgaria | 14 | 14 | ||||||||
| Croatia | 7 | 7 | ||||||||
| Czech Republic | 13 | 13 | ||||||||
| Greece | 9 | 10 | 19 | |||||||
| Hungary | 13 | 21 | 3 4 |
|||||||
| Kazakhstan | +2 | 8 | +2 | 8 | ||||||
| Moldova | 3 | 3 | ||||||||
| Poland | +1 | 40 | 54 | 61 | +1 | 155 | ||||
| Romania | 32 | 25 | 57 | |||||||
| Russia | +1 | 63 | 18 | 36 | +1 | 117 | ||||
| Serbia | 9 | 9 | ||||||||
| Slovakia | 6 | 6 | ||||||||
| Turkey | 24 | 12 | 25 | 61 | ||||||
| Ukraine | 31 | 1 | 32 | |||||||
| Eastern Europe | +4 | 272 | 110 | 153 | +4 | 535 | ||||
| China | +2 | 54 | 7 | +2 | 61 | |||||
| Egypt | 2 | 2 | ||||||||
| India | +1 | 10 | +1 | 10 | ||||||
| Japan | 9 | 9 | ||||||||
| Pakistan | +4 | 9 | +4 | 9 | ||||||
| Vietnam | +1 | 17 | +1 | 17 | ||||||
| Asia/Africa | +8 | 101 | 7 | +8 | 108 | |||||
| Total | +12 | 740 | -1 | 425 | +3 | 896 | +1 | 141 | +15 | 2,202 |
| As reported | Special items | Before special items | ||||
|---|---|---|---|---|---|---|
| € million | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 |
| EBITDA | 464 | 306 | 1 | 0 | 465 | 306 |
| thereof Metro Cash & Carry | 92 | 39 | 4 | 0 | 96 | 39 |
| Real | 25 | 22 | -2 | 0 | 23 | 22 |
| Media-Saturn | 127 | 46 | 1 | 0 | 128 | 46 |
| Galeria Kaufhof | -4 | 2 | 0 | 0 | -4 | 2 |
| Real estate | 236 | 221 | -5 | 0 | 231 | 221 |
| Other | -7 | -24 | 2 | 0 | -5 | -24 |
| Consolidation | -4 | -1 | 1 | 0 | -3 | -1 |
| EBIT | 142 | -9 | 3 | 0 | 145 | -9 |
| thereof Metro Cash & Carry | 27 | -26 | 4 | 0 | 31 | -26 |
| Real | -21 | -23 | -2 | 0 | -23 | -23 |
| Media-Saturn | 65 | -20 | 1 | 0 | 66 | -20 |
| Galeria Kaufhof | -27 | -24 | 0 | 0 | -27 | -24 |
| Real estate | 139 | 136 | -3 | 0 | 136 | 136 |
| Other | -38 | -53 | 2 | 0 | -36 | -53 |
| Consolidation | -3 | 1 | 1 | 0 | -2 | 1 |
| EBT | 22 | -134 | 3 | 0 | 25 | -134 |
| Net profit for the period | 14 | -81 | 2 | 0 | 16 | -81 |
| Earnings per share (€) | -0.01 | -0.25 | 0.01 | 0.00 | 0.00 | -0.25 |
| As reported | Special items | Before special items | ||||
|---|---|---|---|---|---|---|
| € million | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 |
| EBITDA | 464 | 306 | 1 | 0 | 465 | 306 |
| thereof Germany | 115 | 48 | 3 | 0 | 118 | 48 |
| Western Europe (excl. Germany) | 124 | 73 | 3 | 0 | 127 | 73 |
| Eastern Europe | 202 | 172 | -6 | 0 | 196 | 172 |
| Asia/Africa | 19 | 9 | 1 | 0 | 20 | 9 |
| Consolidation | 4 | 4 | 0 | 0 | 4 | 4 |
| EBIT | 142 | -9 | 3 | 0 | 145 | -9 |
| thereof Germany | -32 | -106 | 3 | 0 | -29 | -106 |
| Western Europe (excl. Germany) | 60 | 12 | 3 | 0 | 63 | 12 |
| Eastern Europe | 113 | 88 | -4 | 0 | 109 | 88 |
| Asia/Africa | -3 | -7 | 1 | 0 | -2 | -7 |
| Consolidation | 4 | 4 | 0 | 0 | 4 | 4 |
| EBT | 22 | -134 | 3 | 0 | 25 | -134 |
| Net profit for the period | 14 | -81 | 2 | 0 | 16 | -81 |
| Earnings per share (€) | -0.01 | -0.25 | 0.01 | 0.00 | 0.00 | -0.25 |
| € million | Q1 2011 | Q1 2012 |
|---|---|---|
| Net sales | 1) 15,307 |
15,647 |
| Cost of sales | 1) -12,124 |
-12,504 |
| Gross profit on sales | 3,183 | 3,143 |
| Other operating income | 319 | 326 |
| Selling expenses | -2,990 | -3,052 |
| General administrative expenses | -356 | -413 |
| Other operating expenses | -14 | -13 |
| EBIT | 142 | -9 |
| Result from associated companies | 0 | 1 |
| Other investment result | 27 | 0 |
| Interest income | 32 | 32 |
| Interest expenses | -163 | -164 |
| Other financial result | -16 | 6 |
| Net financial result | -120 | -125 |
| EBT | 22 | -134 |
| Income taxes | -8 | 53 |
| Net profit for the period | 14 | -81 |
| Net profit for the period attributable to non-controlling interests | 17 | 1 |
| Net profit attributable to shareholders of METRO AG | -3 | -82 |
| Earnings per share in € (basic=diluted) | -0.01 | -0.25 |
1) Revised disclosure (see Notes)
| € million | Q1 2011 | Q1 2012 |
|---|---|---|
| Net profit for the period | 14 | -81 |
| Other comprehensive income | ||
| Changes in revaluation reserve | 0 | 0 |
| Actuarial gains/losses | 0 | 0 |
| Currency translation differences from the conversion of the accounts | -13 | 145 |
| of foreign operations | ||
| Effective portion of gains/losses from cash flow hedges | -12 | -21 |
| Gains/losses fron the revaluation of financial instruments in the | 0 | 0 |
| category "available-for-sale" | ||
| Income tax attributable to components of "other income" | 2 | -1 |
| Total comprehensive income | -9 | 42 |
| Comprehensive income attributable to non-controlling interests | 14 | 6 |
| Comprehensive income attributable to shareholders of METRO AG | -23 | 36 |
| € million | 31/12/2011 | 31/03/2011 | 31/03/2012 |
|---|---|---|---|
| Non-current assets | 18,822 | 18,682 | 18,816 |
| Goodwill | 4,045 | 4,061 | 4,063 |
| Other intangible assets | 454 | 422 | 434 |
| Tangible assets | 12,661 | 12,276 | 12,603 |
| Investment properties | 209 | 233 | 220 |
| Financial investments 1) | 79 | 246 | 130 |
| Other financial and non-financial assets 1) | 470 | 443 | 460 |
| Deferred tax assets | 904 | 1,001 | 906 |
| Current assets | 15,165 | 12,551 | 13,228 |
| Inventories | 7,608 | 7,273 | 7,434 |
| Trade receivables | 551 | 451 | 519 |
| Financial investments 1) | 119 | 3 | 99 |
| Other financial and non-financial assets 1) | 2,882 | 2,493 | 2,477 |
| Entitlements to income tax refunds | 431 | 468 | 516 |
| Cash and cash equivalents | 3,355 | 1,690 | 1,958 |
| Assets held for sale | 219 | 173 | 225 |
| 33,987 | 31,233 | 32,044 |
| € million | 31/12/2011 | 31/03/2011 | 31/03/2012 |
|---|---|---|---|
| Equity | 6,437 | 6,403 | 6,442 |
| Share capital | 835 | 835 | 835 |
| Capital reserve | 2,544 | 2,544 | 2,544 |
| Reserves retained from earnings | 2,985 | 2,906 | 3,020 |
| Non-controlling interests | 73 | 118 | 43 |
| Non-current liabilities | 8,085 | 8,342 | 9,165 |
| Provisions for pensions and similar commitments | 1,028 | 1,014 | 1,033 |
| Other provisions | 463 2) | 489 2) | 457 |
| Borrowings 1) | 5,835 | 6,012 | 6,905 |
| Other financial and non-financial liabilities 1) | 602 2) | 613 2) | 620 |
| Deferred tax liabilities | 157 | 214 | 150 |
| Current liabilities | 19,465 | 16,488 | 16,437 |
| Trade liabilities | 14,214 2) | 10,233 2) | 10,729 |
| Provisions | 546 2) | 469 2) | 483 |
| Borrowings 1) | 1,606 | 2,915 | 2,459 |
| Other financial and non-financial liabilities 1) | 2,705 2) | 2,508 2) | 2,471 |
| Income tax liabilities | 394 | 223 | 295 |
| Liabilities related to assets held for sale | 0 | 140 | 0 |
| 33,987 | 31,233 | 32,044 |
1) Changes of name (see Notes)
2) Revised disclosure (see Notes)
| € million Q1 2011 |
Q1 2012 | |
|---|---|---|
| EBIT 142 |
-9 | |
| Write-backs/write-downs of assets excl. financial assets 322 |
315 | |
| Change in provisions for pensions and other provisions -59 |
1) | -48 |
| Change in net working capital -3,311 |
1) | -2,878 |
| Income taxes paid -199 |
-227 | |
| Reclassification of gains (-) / losses (+) from the disposal of fixed assets | 0 | 0 |
| Other -215 |
1) | -84 |
| Total cash flow from operating activities -3,320 |
-2,931 | |
| Corporate acquisitions | 0 | 0 |
| Investments in tangible assets (excl. finance leases) -281 |
1) | -337 |
| Other investments -26 |
-32 | |
| Divestments | 0 | 0 |
| Disposal of fixed assets 98 |
99 | |
| Gains (-) / losses (+) from the disposal of fixed assets | 0 | 0 |
| Total cash flow from investing activities -209 |
-270 | |
| Profit distribution | ||
| to METRO AG shareholders | 0 | 0 |
| to other shareholders -49 |
-35 | |
| Changes of financial liabilities 630 |
1,932 | |
| Interest paid -160 |
-156 | |
| Interest received 34 |
47 | |
| Profit and loss transfers and other financing activities -28 |
10 | |
| Total cash flow from financing activities 427 |
1,798 | |
| Total cash flows -3,102 |
-1,403 | |
| Exchange rate effects on cash and cash equivalents -7 |
6 | |
| Change in cash and cash equivalents due to the first-time consolidation of companies | 0 | 0 |
| Total change in cash and cash equivalents -3,109 |
-1,397 | |
| Cash and cash equivalents on 1 January 4,799 |
3,355 | |
| Cash and cash equivalents on 31 March 1,690 |
1,958 |
1) Revised disclosure (see Notes)
| € 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 01/01/2011 | 835 | 2,544 | 63 | -315 | 17 | 3,164 | 2,929 | 6,308 | 152 | 6,460 | ||
| Dividends | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -49 | -49 | ||
| Comprehensive income | 0 | 0 | -12 | -10 | 2 | -3 | -23 | -23 | -20 | 14 | -3 | -9 |
| Revision of IAS 17 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 | ||
| 31/03/2011 | 835 | 2,544 | 51 | -325 | 19 | 3,161 | 2,906 | 6,285 | 118 | 6,403 | ||
| 01/01/2012 | 835 | 2,544 | 91 | -438 | -4 | 3,336 | 2,985 | 6,364 | 73 | 6,437 | ||
| Dividends | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -35 | -35 | ||
| Comprehensive income | 0 | 0 | -21 | 140 | -1 | -82 | 36 | 36 | 118 | 6 | 5 | 42 |
| Capital balance from acquisitions of shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| 31/03/2012 | 835 | 2,544 | 70 | -298 | -5 | 3,253 | 3,020 | 6,399 | 43 | 6,442 |
Metro
Divisions
| Cash & Carry | Real | Media-Saturn | Galeria Kaufhof | Real Estate | Other | Consolidation | METRO GROUP | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| € million | Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
| External sales (net) | 7,023 1) | 7,284 | 2,605 1) | 2,664 | 4,965 | 4,983 | 699 1) | 705 | 0 | 0 | 15 1) | 10 | 0 | 0 | 15,307 1) | 15,647 |
| Internal sales (net) | 7 | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,370 1) | 1,448 | -1,377 1) | -1,454 | 0 | 0 |
| Total sales (net) | 7,030 1) | 7,290 | 2,605 1) | 2,664 | 4,965 | 4,983 | 699 1) | 705 | 0 | 0 | 1,385 1) | 1,458 | -1,377 1) | -1,454 | 15,307 1) | 15,647 |
| EBITDA | 92 | 39 | 25 | 22 | 127 | 46 | -4 | 2 | 236 | 221 | -7 | -24 | -4 | -1 | 464 | 306 |
| Depreciation/amortisation | 64 | 65 | 47 | 46 | 62 | 66 | 23 | 26 | 96 | 85 | 31 | 29 | -1 | -1 | 322 | 315 |
| Write-backs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBIT | 27 | -26 | -21 | -23 | 65 | -20 | -27 | -24 | 139 | 136 | -38 | -53 | -3 | 1 | 142 | -9 |
| Investments | 34 | 51 | 51 | 22 | 35 | 38 | 14 | 16 | 61 | 68 | 16 | 24 | 0 | 0 | 211 | 219 |
| Segment assets | 7,404 | 8,108 | 3,706 | 3,574 | 5,619 | 5,688 | 1,032 | 1,054 | 8,507 | 8,713 | 1,529 | 1,539 | -594 | -786 | 27,203 | 27,889 |
| thereof non-current | 3,855 | 4,358 | 2,476 | 2,377 | 1,717 | 1,788 | 472 | 495 | 8,400 | 8,272 | 560 | 482 | -142 | -139 | 17,339 | 17,633 |
| Segment liabilities | 5,439 | 5,330 | 1,699 | 1,633 | 5,605 | 5,790 | 894 | 902 | 485 | 428 | 1,920 | 1,809 | -1,138 | -894 | 14,905 | 14,998 |
| Selling space (1,000 sqm) | 5,403 | 5,564 | 3,090 | 3,065 | 2,844 | 2,902 | 1,471 | 1,480 | 0 | 0 | 0 | 0 | 0 | 0 | 12,808 | 13,011 |
| Stores (number) | 703 | 740 | 427 | 425 | 880 | 896 | 139 | 141 | 0 | 0 | 0 | 0 | 0 | 0 | 2,149 | 2,202 |
| 1) Revised disclosure (see Notes) |
Regions
| Western Europe | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Germany | excl. Germany | Eastern Europe | Asia/Africa | International | Consolidation | METRO GROUP | ||||||||
| € million | Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
Q1 2011 |
Q1 2012 |
| External sales (net) | 5,950 1) | 6,047 | 4,754 1) | 4,695 | 3,818 1) | 3,954 | 784 1) | 952 | 9,357 1) | 9,600 | 0 | 0 | 15,307 1) | 15,647 |
| Internal sales (net) | 9 | 40 | 7 | 27 | 0 | 1 | 10 1) | 9 | 18 1) | 38 | -27 1) | -78 | 0 | 0 |
| Total sales (net) | 5,959 1) | 6,087 | 4,761 1) | 4,722 | 3,818 1) | 3,955 | 795 1) | 961 | 9,374 1) | 9,638 | -27 1) | -78 | 15,307 1) | 15,647 |
| EBITDA | 115 | 48 | 124 | 73 | 202 | 172 | 19 | 9 | 345 | 254 | 4 | 4 | 464 | 306 |
| Depreciation/amortisation | 147 | 154 | 64 | 61 | 90 | 84 | 22 | 16 | 175 | 161 | 0 | 0 | 322 | 315 |
| Write-backs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBIT | -32 | -106 | 60 | 12 | 113 | 88 | -3 | -7 | 170 | 93 | 4 | 4 | 142 | -9 |
| Investments | 106 | 91 | 25 | 40 | 60 | 40 | 21 | 47 | 105 | 128 | 0 | 0 | 211 | 219 |
| Segment assets | 11,053 | 11,406 | 7,258 | 7,243 | 7,827 | 8,026 | 1,408 | 1,617 | 16,492 | 16,885 | -343 | -403 | 27,203 | 27,889 |
| thereof non-current | 6,685 | 6,889 | 4,138 | 4,010 | 5,603 | 5,685 | 917 | 1,055 | 10,657 | 10,750 | -3 | -6 | 17,339 | 17,633 |
| Segment liabilities | 6,870 | 6,696 | 4,713 | 4,635 | 3,028 | 3,243 | 666 | 755 | 8,407 | 8,633 | -373 | -331 | 14,905 | 14,998 |
| Selling space (1,000 sqm) | 5,816 | 5,798 | 3,075 | 3,007 | 3,353 | 3,527 | 564 | 680 | 6,992 | 7,213 | 0 | 0 | 12,808 | 13,011 |
| Stores (number) | 940 | 940 | 628 | 619 | 495 | 535 | 86 | 108 | 1,209 | 1,262 | 0 | 0 | 2,149 | 2,202 |
1) Revised disclosure (see Notes)
These unaudited interim consolidated financial statements as at 31 March 2012 have been prepared in accordance with International Accounting Standard (IAS) 34 ("Interim Financial Reporting"), which regulates interim financial reporting under the International Financial Reporting Standards (IFRS). As a condensed interim report, it does not contain all the information required by IFRS for annual consolidated financial statements.
With the exception of new or revised standards and interpretations, the same recognition and measurement principles have been applied as in the last consolidated financial statements as at 31 December 2011. 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 2011 (see Annual Report 2011, pages 186-199).
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 have been prepared in Euros. All amounts are stated in millions of Euros (€ million), unless otherwise indicated. Furthermore, to provide a better overview within the tables, decimal places have been partly omitted. Contrary to former disclosure, only the numbers within the income statement, the total comprehensive income reconciliation, the balance sheet, the statement of changes in equity and the cash flow statement have been rounded in a way that they form the sum when added up. In the remaining tables, the individual numbers and the sums have been rounded independently. As a result, rounding differences may occur.
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, these were only the standards and interpretations already applied and explained in the annual consolidated financial statements as at 31 December 2011, as there have been no revisions relevant to METRO GROUP in Q1 2012.
Generally net sales are disclosed to the amount of the consideration received or the fair value of the goods and services sold. This disclosure method requires that the company be exposed to the significant risks and rewards associated with the sale of the goods or the rendering of the services. Otherwise net sales are only recognised to the amount of the commission which the company thus earns for acting as an agent. IAS 18 contains indicators which suggest disclosing sales to the amount of the commission. As of Q1 2012, METRO AG changes its interpretation of these indicators and adjusts the disclosure of certain transactions in the income statement to ensure better comparability with other retail companies, especially with regard to the EBIT margin. Net sales from these transactions are henceforth only disclosed to the amount of the commission, without the disclosure of the corresponding cost of sales. However, gross profit and absolute EBIT remain unaffected by this change. To guarantee comparability, the previous year's net sales in Q1 2011 have been adjusted by €-209 million. This effect is allocated to the external sales disclosed in the segment reporting: €-7 million are allocated to Metro Cash & Carry, €-44 million to Real, €-81 million to Galeria Kaufhof and €-76 to the segment Other.
In Q1 2012 the definition of net working capital has been extended to include deferred revenues and provisions in connection with customer loyalty programmes, deferred revenues from the sale of vouchers and provisions for rights of return. Liabilities from the purchase of other fixed assets, previously disclosed in "Trade payables", are henceforth excluded from the definition. In the cash flow statement, liabilities from the purchase of other fixed assets are like liabilities from the purchase of real estate assigned to investing activities.
The changes in definition have an effect on cash flow from operating activities and cash flow from investing activities. In the previous year's cash flow statement as of Q1 2012 the item "Change in provisions for pensions and other provisions" has been adjusted by €-9 million, "Change in net working capital" by €152 million, "Other" by €14 million and "Investments in tangible assets" by €-157 million.
In the course of the exclusion of liabilities from the purchase of other fixed assets from the definition of net working capital, the comparative balance sheet figures as of 31 March 2011 and 31 December 2011 have been adjusted. The reclassification results in a reduction in "Trade payables" and a corresponding increase in the item "Other financial and non-financial assets" (current) of €52 million as of 31 March 2011 and €53 million as of 31 December, respectively.
Deferred revenues and provisions in connection with warranties and customer loyalty programmes have been reclassified from non-current- to current liabilities to take into account that they are part of the entity's normal operating cycle. The comparative figures as of 31 March 2011 and 31 December 2011 have been adjusted accordingly. As of both 31 March 2011 and 31 December 2011 €154 million have been reclassified from non-current "Other financial and non-financial liabilities" to the current item with the same title. The effect on "Other provisions" (longterm) was €-18 million as of 31 March 2011 and €-15 million as of 31 December 2011. These amounts have been reclassified to "Provisions" (current).
On the asset side of the balance sheet the item "Financial assets" has been renamed "Financial investments" and the item "Other receivables and assets" "Other financial and non-financial assets". On the liabilities side the title of the item "Financial liabilities" has been changed to "Borrowings". Additionally, the item "Other liabilities" is titled "Other financial and non-financial liabilities" as of this year. These terminology changes affect both non-current and current items of the same title. The terminology changes are to clarify that the items previously titled "Other receivables and assets" and "Other liabilities" also partly include financial assets and financial liabilities respectively.
Write-downs amounted to €315 million (Q1 2011: €322 million). Thereof, €273 million (Q1 2011: €280 million) were included in selling expenses, €38 million (Q1 2011: €40 million) in general administrative expenses and €4 million (Q1 2011: €2 million) in cost of sales. Write-downs of intangible assets accounted for €40 million (Q1 2011: €36 million), write-downs of fixed assets accounted for €272 million (Q1 2011: €282 million) and write-downs of investment properties accounted for €3 million (Q1 2011: €4 million). Impairments were included to the amount of €1 million (Q1 2011: €13 million).
Impairments of capitalised financial instruments measured at amortised cost amounted to €25 million (Q1 2011: €34 million).
Segment reporting has been prepared in accordance with IFRS 8 (Operating Segments). The segmentation corresponds to the Group's internal controlling and reporting structures and is generally based on the division of the business into individual sectors.
Aside from the information on the operating segments listed above, equivalent information is provided on the Metro regions. Here, a distinction is made between the regions Germany, Western Europe excluding Germany, Eastern Europe and Asia/Africa.
| € million | 31.03.2011 | 31.03.2012 |
|---|---|---|
| Segment assets | 27,203 | 27,889 |
| Non-current and current financial investments | 249 | 229 |
| Cash and cash equivalents | 1,690 | 1,958 |
| Deferred tax assets | 1,001 | 906 |
| Entitlements to income tax refunds | 468 | 516 |
| 1) Other entitlements to tax refunds |
475 | 464 |
| Receivables from other financial transactions2) | 103 | 44 |
| Other | 44 | 38 |
| Group assets | 31,233 | 32,044 |
non-financial assets" (current) Included in the balance sheet item "other financial and
1)
2) Included in the balance sheet items "other financial and non-financial assets" (non-current and current)
• Segment liabilities include non-current and current liabilities. They do not include, in particular, borrowings according to the balance sheet, income tax items and liabilities allocable to discontinued operations. The reconciliation from segment liabilities to Group liabilities is shown in the following table:
| € million | 31.03.2011 | 31.03.2012 |
|---|---|---|
| Segment liabilities | 14,905 | 14,998 |
| Non-current and current borrowings | 8,927 | 9,364 |
| Deferred tax liabilities | 214 | 150 |
| Income tax liabilities | 223 | 295 |
| Income tax provisions1) | 146 | 155 |
| Other tax liabilities2) | 340 | 414 |
| Liabilities from other financial transactions2) | 33 | 47 |
| Liabilities to third parties2) | 27 | 88 |
| Other | 15 | 91 |
| Group liabilities | 24,830 | 25,602 |
| 1) Included in the balance sheet items "other provisions" (non |
current) and "provisions" (current)
2) Included in the balance sheet items "other financial and non-financial liabilities" (non-current and current)
• In principle, transfers between segments are made based on the costs incurred from the Group's perspective.
The decline in contingent liabilities is mainly a result of the, in the meantime, realised risks in connection with the tax audit of a foreign subsidiary.
| € million | 31/03/2011 | 31/03/2012 |
|---|---|---|
| Liabilities from suretyships and guarantees | 19 | 16 |
| Liabilities from guarantee and warranty contracts | 111 | 49 |
| 130 | 65 |
In Q1 2012, METRO GROUP maintained the following business relations to related companies:
| Mio. € | Q1 2011 | Q1 2012 |
|---|---|---|
| Goods/services provided | 0 | 1 |
| therefore to associated companies | 0 | 0 |
| Goods/services received | 21 | 7 |
| therefore from associated companies | 2 | 3 |
| Receivables from goods/services provided | 0 | 1 |
| Liabilities from goods/services received | 2 | 2 |
In Q1 2012, METRO GROUP companies provided goods/services totalling €1 million to companies included in the group of related companies. This concerned primarily the granting of lease rights.
The goods/services totalling €7 million that METRO GROUP companies received from related companies in Q1 2012 consisted €5 million of services and €2 million of property leases. The decline in goods/services received resulted mainly from the termination of rental contracts with related parties.
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.
Joël Saveuse, member of METRO AG's Management Board and CEO of the Real Group, left the company as of 31 March 2012. This was mutually agreed upon by Mr Saveuse and the Supervisory Board. CEO Olaf Koch has taken full responsibility for Real within the Management Board of METRO AG.
| 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 Mai 2012
Phone +49 211 - 6886 – 1051 Fax +49 211 - 6886 – 3759 Email [email protected]
Phone +49 211 - 6886 – 1904 Fax +49 211 - 6886 – 1916 Email [email protected]
| Phone | +49 211 - 6886 – 4252 |
|---|---|
| Fax | +49 211 - 6886 – 2001 |
| [email protected] |
Visit our website at www.metrogroup.de, the primary source for publications and information about the METRO GROUP. With the METRO GROUP News Abo you can subscribe to regular news and official publications of the company online.
Please note: In case of doubt the German version shall prevail.
This report contains forward-looking statements which are based on certain expectations and assumptions at the time of publication of this report and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in these materials. Many of these risks and uncertainties relate to factors that are beyond METRO GROUP's ability to control or estimate precisely, such as future market and economic conditions, the behaviour of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated cost savings and productivity gains as well as the actions of government regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this report. METRO GROUP does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.