41. Segment reporting

Segment reporting has been carried out 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.

METRO Cash & Carry

METRO Cash & Carry operates in the cash and carry sector in 29 countries of Europe, Asia and Africa through its METRO and MAKRO brands. Its broad product and service range is geared to commercial customers, in particular: hotel and restaurant owners, catering firms, independent retailers as well as service providers and public authorities.

Real

Real is a hypermarket operator in Germany where it operates both stationary stores and an online store. In addition, the sales line has locations in Poland, Romania, Russia, Turkey and Ukraine. All stores offer a broad food assortment with a large proportion of fresh produce that is complemented by a nonfood assortment.

Media-Saturn

Media-Saturn offers a comprehensive assortment of the latest brand products in consumer electronics retailing. The sales line is represented in 16 countries with 2 strong sales brands. In addition, the pure play online retailer Redcoon is part of Media-Saturn.

Galeria Kaufhof

Galeria Kaufhof operates department stores in Germany and Belgium. In Belgium, the sales line operates under the Galeria Inno name. The Galeria department stores offer international assortments and high-quality own brands with a focus on clothing. The stationary business is closely dovetailed with the online store.

Real Estate

METRO PROPERTIES is METRO GROUP’s real estate company and manages retail locations in 29 countries. METRO PROPERTIES aims to add value to the Group’s real estate assets over the long term through active portfolio management. Its activities include planning new locations, the development and construction of retail properties as well as energy management on behalf of METRO GROUP locations.

Additional information on the segments is provided in the Group management report.

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.

  • External sales represent sales of the operating segments to third parties outside the Group.
  • Internal sales represent sales between the Group’s operating segments.
  • Segment EBITDAR represents EBITDA before rental expenses less rental income.
  • Segment EBITDA comprises EBIT before depreciation, amortisation and impairment and reversals of impairment on tangible and intangible assets.
  • EBIT as the key ratio for segment reporting describes operating earnings for the period before net financial result and income taxes. Intra-Group rental contracts are shown as operating leases in the segments. The properties are leased at market rates. In principle, store-related risks and impairment risks related to non-current assets are only shown in the segments where they represent Group risks. In analogy, this also applies to deferred assets and liabilities, which are only shown at segment level if this was also required in the consolidated balance sheet.
  • Segment investments include additions to non-current intangible and tangible assets (including additions to the consolidation group as well as investment properties except for additions due to the reclassification of “assets held for sale” as non-current assets.
  • Segment assets include non-current and current assets. They do not include mostly financial assets, investments recognised at equity, tax items, cash and cash equivalents and assets allocable to discontinued operations.

The reconciliation from segment assets to Group assets is shown in the following table:

  Download XLS (17 kB)

€ million

31/12/2011

31/12/2012

1

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

2

Included in financial investments (non-current) in the previous year

3

Included in the balance sheet item “other financial and non-financial assets” (current)

4

Included in the balance sheet items “other financial and non-financial assets” (noncurrent and current)

Segment assets

28,632

27,585

Non-current and current financial investments1

195

269

Investments accounted for using the equity method2

3

92

Cash and cash equivalents

3,355

5,299

Deferred tax assets

904

738

Entitlements to income tax refunds

431

347

Other entitlements to tax refunds3

342

269

Assets held for sale

0

107

Receivables from other financial transactions4

57

19

Other

68

40

Group assets

33,987

34,766

  • Segment liabilities include non-current and current liabilities. They do not include, in particular, borrowings, tax items and liabilities allocable to discontinued operations.

The reconciliation from segment liabilities to Group liabilities is shown in the following table:

  Download XLS (18 kB)

€ million

31/12/2011

31/12/2012

1

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

2

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

3

Included in the balance sheet items “other receivables” (non-current and “receivables”(current)

4

Included in the balance sheet items “other financial and non-financial liabilities” (noncurrent and current)

Segment liabilities1

18,244

18,179

Non-current and current borrowings2

7,441

8,550

Deferred tax liabilities

157

159

Income tax liabilities

394

291

Income tax provisions3

155

106

Other tax liabilities4

633

615

Liabilities from other financial transactions4

32

45

Liabilities to third parties1, 4

393

352

Liabilities related to assets held for sale

0

287

Interest for other provisions3

75

49

Other

26

32

Group liabilities

27,550

28,665

  • In principle, transfers between segments are made based on the costs incurred from the Group’s perspective.