20. Tangible assets

The decline in tangible assets results mainly from the reclassification of assets to “assets held for sale” in the amount of €1,170 million (previous year: €289 million). These concern land and buildings at €860 million (previous year: €284 million), other plant, business and office equipment at €263 million (previous year: €5 million) and assets under construction at €47 million (previous year: €0 million). They result mostly from Real’s Eastern European business held for sale (€707 million), the divestment of the Cash & Carry business in the United Kingdom (€291 million) and the reclassification of the assets of OPCI FRENCH WHOLESALE STORES – FWS (€114 million).

  Download XLS (19 kB)

€ million

Land and buildings

Other plant, business and office equipment

Assets under construction

Total

1

Including asset transfers from “assets held for sale"

2

Including asset transfers from “assets held for sale” to “tangible assets””

Acquisition and production costs

 

 

 

 

As of 1/1/2011

13,251

8,314

317

21,882

Currency translation

–100

–92

–7

–199

Additions to consolidation group

0

4

0

4

Additions

597

620

595

1,812

Disposals1

–445

–425

–39

–909

Transfers

188

354

–566

–24

As of 31/12/2011 / 1/1/2012

13,491

8,775

300

22,566

Currency translation

62

69

3

134

Additions to consolidation group

45

0

0

46

Additions

1992

521

513

1,233

Disposals1

–1,727

–1,335

–101

–3,163

Transfers

197

307

–497

7

As of 31/12/2012

12,266

8,337

218

20,822

Depreciation/amortisation

 

 

 

 

As of 1/1/2011

4,145

5,243

12

9,400

Currency translation

–24

–52

–1

–77

Additions, scheduled

447

631

0

1,078

Impairment losses

47

34

0

81

Disposals1

–148

–373

0

–521

Reversals of impairment losses

–31

0

0

–31

Transfers

–72

52

–5

–25

As of 31/12/2011 / 1/1/2012

4,364

5,535

6

9,905

Currency translation

22

42

0

64

Additions, scheduled

423

626

0

1,049

Impairment losses

46

93

9

149

Disposals1

–610

–1,019

–9

–1,638

Reversals of impairment losses

–4

–4

0

–8

Transfers

–94

70

2

–21

As of 31/12/2012

4,147

5,342

9

9,498

Carrying amount at 1/1/2011

9,106

3,071

305

12,482

Carrying amount at 31/12/2011

9,127

3,240

294

12,661

Carrying amount at 31/12/2012

8,119

2,995

210

11,324

Aside from the reclassification of assets to “assets held for sale”, the financial year includes disposals of real estate assets in the amount of €257 million (previous year: €13 million).

The effects of currency translations led to an increase of tangible assets in the amount of €70 million (previous year: reduction by €122 million). This increase is mainly due to exchange rate developments in Russia and Poland.

Limitations to the disposal of assets in the form of liens and encumbrances amounted to €288 million (previous year: €314 million).

Contractual commitments for the acquisition of property, plant and equipment in the amount of €190 million (previous year: €251 million) were entered. €1 million of this amount is related to the planned disposal of Real’s Eastern European business.

Assets used by the Group under the terms of finance lease agreements were valued at €1,026 million (previous year: €1,310 million). The assets involved are mainly leased buildings.

Finance leases generally have terms of 15 to 25 years with options under expiration to extend them at least once for 5 years. The interest rates in the leases vary by market and date of signing between 5.2 and 11.4 percent.

In addition to finance leases, METRO GROUP also signed other types of leases classified as operating leases based on their economic value. Operating leases generally have an initial term of up to 15 years. The interest rates in the leases are based partly on variable and partly on fixed rents.

Payments due under finance and operating leases in subsequent periods are shown as follows:

  Download XLS (16 kB)

€ million

Up to 1 Year

1 to 5 years

Over 5 Years

Finance leases 31/12/2011

 

 

 

Future lease payments due (nominal)

252

910

1,905

Discount

–18

–249

–1,014

Present value

234

661

891

Operating leases 31/12/2011

 

 

 

Future lease payments due (nominal)

1,453

4,696

4,369

 

 

 

 

 

 

 

 

€ million

Up to 1 Year

1 to 5 years

Over 5 Years

Finance leases 31/12/2012

 

 

 

Future lease payments due (nominal)

251

851

1,756

Discount

–15

–232

–924

Present value

236

619

832

Operating leases 31/12/2011

 

 

 

Future lease payments due (nominal)

1,556

4,949

4,469

The present values of liabilities from finance leases in 2012 include future payments with maturities of up to 1 year totalling €32 million, of 1 to 5 years totalling €56 million and of more than 5 years totalling €184 million related to Real’s Eastern European business, which is scheduled to be disposed of.

The amounts shown for future payments due on operating leases (nominal) in 2012 concern future payments with terms of up to 1 year in the amount of €97 million, of 1 to 5 years in the amount of €337 million and of over 5 years in the amount of €353 million from Real’s Eastern European business held for sale.

Future payments due on finance leases contain payments amounting to €42 million (previous year: €42 million) for options to purchase assets at favourable prices.

The nominal value of future lease payments due to METRO GROUP coming from the subleasing of assets held under finance leases amounts to €176 million (previous year: €183 million).

The nominal value of future lease payments due to METRO GROUP resulting from the subleasing of assets held under operating leases amounts to €958 million (previous year: €935 million). Of these lease payments of €958 million in 2012, €43 million stem from Real’s Eastern European business held for sale.

Profit or loss for the period includes payments made under leasing agreements amounting to €1,584 million (previous year: €1,522 million) and payments received under subleasing agreements amounting to €407 million (previous year: €421 million).

Contingent lease payments from finance and operating leases recognised as expenses during the period amount to €9 million (previous year: €7 million) and €78 million (previous year: €68 million), respectively.

Lease payments due in subsequent periods from entities outside METRO GROUP for the rental of properties that are legally owned by METRO GROUP (METRO GROUP as lessor) are shown below:

  Download XLS (17 kB)

€ million

Up to 1 Year

1 to 5 years

Over 5 Years

1

Adjustment of previous year (see chapter “Notes to the Group accounting principles and methods“)

Finance leases 31/12/2011

 

 

 

Future lease payments due (nominal)

4

6

8

Discount

0

–1

–5

Present value

4

5

3

Operating leases 31/12/2011

 

 

 

Future lease payments due (nominal)1

32

94

108

 

 

 

 

 

 

 

 

€ million

Up to 1 Year

1 to 5 years

Over 5 Years

Finance leases 31/12/2012

 

 

 

Future lease payments due (nominal)1

3

4

7

Discount

0

–1

–5

Present value

3

3

2

Operating leases 31/12/2012

 

 

 

Future lease payments due (nominal)

33

107

109

From the perspective of the lessor, the unguaranteed residual value must be added to the nominal minimum lease payments of €14 million (previous year: €18 million) in existing finance leases. This amounted to €3 million during the financial year (previous year: €3 million). The resulting gross investment amount is €17 million (previous year: €21 million). In addition, there is an unrealised financial income of €6 million (previous year: €6 million).