Capital management

The aim of the capital management strategy of METRO GROUP is to secure the Company’s continued business operations, to enhance its enterprise value, to create solid capital resources to finance its profitable growth and to provide for attractive dividend payments and capital service.

The capital management strategy of METRO GROUP has remained unchanged compared to the previous year.

EBIT after Cost of Capital (EBITaC)

METRO GROUP pursues a value-orientated corporate management approach based on EBIT after Cost of Capital (EBITaC). The focus is on the successful deployment of business assets and the achievement of a value contribution for METRO GROUP exceeding the cost of capital.

Further information on the development of EBIT after Cost of Capital is included in the Group management report – chapter 3 Earnings position – in the section “EBIT after Cost of Capital (EBITaC)”.

Rating

METRO GROUP’s ratings by the two international agencies Moody’s and Standard & Poor’s communicate the Company’s creditworthiness to existing and potential debt capital investors. Based on its current ratings, METRO GROUP has comprehensive access to all debt capital markets.

Detailed information on the METRO GROUP rating can be found in the Group management report – chapter 4 Financial and asset position – in the “Financial management” section.

Equity and liabilities and net debt in the consolidated financial statements

Equity amounted to €6,101 million (previous year: €6,437 million), while liabilities reached €28,665 million (previous year: €27,550 million). Net debt amounted to €3,245 million compared with €4,075 million in the previous year.

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€ million

31/12/2011

31/12/2012

1

Revised terminology (see chapter “Notes to the Group accounting principles and methods”)

2

Included in the balance sheet under "Other financial and non-financial assets" (current)

Equity

6,437

6,101

Liabilities

27,550

28,665

Net debt

4,075

3,245

Borrowings (incl. finance leases)1

7,441

8,550

Cash and cash equivalents according to the balance sheet

3,355

5,299

Monetary investments > 3 months ≤ 1 year2

11

6

Local capital requirements

The capital market strategy of METRO GROUP consistently aims to ensure that the Group companies’ capital resources comply with local requirements. During the financial year, all external capital requirements were fulfilled. This includes, for example, adherence to a maximum level of indebtedness or a fixed equity ratio.