Financial result and taxes

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€ million



Earnings before interest and taxes EBIT



Result from associated companies



Other investment result



Interest income/expenses (net interest result)



Other financial result



Net financial result



Earnings before taxes EBT



Income taxes



Profit or loss for the period



Financial result

The financial result comprises above all the net interest result of €–526 million (previous year: €–580 million) and other financial results of €–36 million (previous year: –102 million). Interest income improved essentially as a result of lower interest expenses. Other financial result improved by €66 million to €–36 million. This was due mostly to the €39 million decline in cumulative results from currency effects and valuation results from hedging transactions and hedging relationships. This decline is due largely to developments of some Eastern European currencies and the related exchange effects and hedging transactions.

Additional information on the financial results can be found in the notes to the consolidated financial statements in no. 6 “Other investment result”, no. 7 “Interest income/interest expenses” and no. 8 “Other financial result”.


The decline in taxes paid or owed is essentially due to tax audits completed during the previous year as well as a taxable real estate transaction conducted during the previous year where properties were brought into a fund structure. The countervailing movement in deferred taxes resulted largely from temporary differences carried forward. In the previous year, these carry-forwards were offset by disproportionate deferred tax income from the above-mentioned real estate transaction. Due to the sale of fund shares the deferred taxes were reversed in the reporting year.

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€ million



Taxes paid or owed



thereof Germany



thereof international



thereof tax expenses/income of current period



thereof tax expenses/income of previous periods



Deferred taxes



thereof Germany



thereof international






The effective tax rate stood at 87.48 percent in the reporting year (previous year: 49.71 percent). Adjusted for special items, the Group’s overall tax rate amounted to 49.42 percent (previous year: 43.47 percent).

Additional information about income taxes can be found in the notes to the consolidated financial statements in no. 10 “Income taxes”.

Group net profit and earnings per share

In 2012, Group net profit totalled €101 million, €640 million lower than in the previous year. Net of non-controlling interests, the Group’s net profit attributable to the shareholders of METRO AG amounted to €3 million (previous year: €631 million).

Net profit for the period comprises special items totalling €615 million (previous year: €238 million). Adjusted for special items, net profit for the period thus amounted to €717 million (previous year: €979 million).

In the financial year 2012, METRO GROUP generated earnings per share of €0.01 (previous year: €1.93). As in the previous year, the calculation was based on a weighted number of 326,787,529 shares. Group net profit attributable to the shareholders of €3 million was distributed according to this number of shares. There was no dilution from so-called potential shares in the reporting year or in the previous year.

Earnings per share before special items totalled €1.89 (previous year: €2.63).

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Net of non-controlling interests

Profit or loss for the period

€ million





Profit or loss attributable to non-controlling interests

€ million





Profit or loss attributable to shareholders of METRO AG

€ million





Earnings per share (basic = diluted)1





Earnings per share before special items1





EBIT after Cost of Capital (EBITaC)

METRO GROUP’s strength is reflected in its ability to continuously increase the Company’s value through growth and operational efficiency as well as optimal capital deployment. METRO GROUP has been using value-orientated performance metrics since 2000 to ensure the Company’s sustained value creation. Since 2009, we have measured the value contribution in terms of EBITaC (EBIT after Cost of Capital). A positive value contribution is achieved when earnings before interest and taxes exceed the cost of capital needed to finance the average capital employed.

EBITaC = EBIT1 – cost of capital

           = EBIT1 – (capital employed x WACC)

1 Special items generally periodised over 4 years

The use of the performance metric EBITaC enables METRO GROUP to focus on the key drivers of the operating business that management can influence: value-creating growth, increases in operational efficiency and the optimisation of capital employed. Value-creating growth is achieved through METRO GROUP’s strategy of focusing on like-for-like sales growth in its existing markets, complementing the stationary business through targeted new sales channels such as online retail and delivery services as well as accelerating its expansion in select countries. In addition, METRO GROUP has successfully implemented operational and administrative measures to increase operational efficiency and optimise capital deployment going beyond the measures included in its efficiency and value-enhancing programme Shape 2012.

The cost of capital reflects the expected remuneration of investors for the capital they provide and for their investment risk before taxes. It is calculated by multiplying the average capital employed by the weighted average cost of capital before taxes (WACC).

The cost of capital before taxes corresponds to the minimum return on capital demanded by capital providers. It reflects the total cost of capital employed and thus consists of equity and debt capital costs. In 2012, METRO GROUP’s cost of capital before taxes amounted to 9.6 percent. This figure is calculated from the segment-specific cost of capital weighted according to capital employed.

Capital employed represents interest-carrying assets. It comprises segment assets plus cash and cash equivalents less trade payables as well as other operational liabilities and deferred income. We use an average capital employed that is calculated from quarterly financial statements in order to also consider developments in capital employed that occur during the relevant period. The new definition of net working capital and the resulting accounting reclassifications are reflected in the restated capital employed.

In the calculation of EBITaC, special items are generally distributed over 4 years on a straight-line basis and considered in earnings before interest and taxes (EBIT). As the respective positive EBIT effects largely arise with a time lag to expenses, the distribution of these special items over several years provides for an improved presentation of operating performance. As a result, short-term special effects do not fully impact earnings during the period in which they occur. In addition, the periodisation helps to ensure that measures that create value over the long term are not abandoned because of negative short-term earnings effects.

The results of the EBITaC analysis are used, among other things, for the management of METRO GROUP’s portfolio as well as for the allocation of investment funds. Medium- to long-term effects on value creation are the key factor determining the allocation of investment funds. As a result, the present value of future value added represents the key criterion for all investments within METRO GROUP. In order to also consider tax aspects in decisions on future expansion, value added after taxes is calculated for these cases. Additional criteria used to assess investment projects include, in particular, discounted cash flow and the cash recovery period as liquidity-based key performance metrics. As part of a stronger priorisation during the allocation process of investment funds profitability metrics relating to the funds deployed are used in addition to strategic relevance to assess alternative investment projects.

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€ million





Previous year adjusted for comparability reasons


The effect of the special items is spread over 4 years

EBIT before special items




EBIT after periodisation of special items2








Capital employed




WACC before taxes



Cost of capital








In 2012, EBIT after periodisation of special items from previous years (2009: €343 million, 2010: €204 million, 2011: €259 million) and periodised one-time expenses from 2012 totalling €585 million amounted to €1,628 million. Given an average capital employed of €16,305 million, the cost of capital amounted to €1,563 million. Despite the macroeconomic challenges and increased price investments, which led to a distinct decline in EBIT, METRO GROUP successfully deployed its capital in 2012 and achieved a positive EBITaC of €65 million.