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 future growth and to provide for attractive dividend payments and capital service.

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

EBIT after cost of capital (EBITaC)

Such metrics as EBIT after cost of capital (EBITaC) and return on capital employed (RoCE) are used in the context of value-based management. 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.

Additional information on EBITaC and RoCE is included in the combined management report in chapter 4 Earnings position in the section Value-based management.

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 the current ratings, METRO GROUP has access to all financial markets.

For more information about the METRO GROUP rating, see the combined management report in chapter 5 Financial and asset position in the section Financial management.

Equity, liabilities and net debt in the consolidated financial statements

Equity amounts to €4,999 million (30/9/2013: €5,206 million), while debt amounts to €23,005 million (30/9/2013: €23,605 million). Net debt amounts to €4,655 million compared with €5,391 million as of 30/9/2013.

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€ million

30/9/2013

30/9/2014

1

Shown in the balance sheet under “other financial and non-financial assets (current)”

Equity

5,206

4,999

Liabilities

23,605

23,005

Net debt

5,391

4,655

Borrowings (incl. finance leases)

7,963

7,068

Cash and cash equivalents according to the balance sheet

2,564

2,406

Financial investments > 3 months ≤ 1 year1

8

7

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 current financial year, all external capital requirements were fulfilled. This includes, for example, adherence to a defined level of indebtedness or a fixed equity ratio.