20. Property, plant and equipment

As of 30 September 2014, property, plant and equipment totalling €10,025 million (30/9/2013: €10,709 million) were recognised. The decline in property, plant and equipment is due to negative currency effects in the amount of €268 million (12M 2012/13: €288 million; 9M 2013: €235 million). In the current financial year, these apply mainly to Russia and Ukraine.

Disposals of property, plant and equipment totalling €215 million (12M 2012/13: €165 million; 9M 2013: €62 million) also contributed to this decline. Included in this amount are disposals of properties totalling €145 million (12M 2012/13: €96 million; 9M 2013: €9 million). They result primarily in €113 million from the sale of individual office properties at METRO GROUP's headquarters in Düsseldorf as well as in €19 million from the sale of the Brandenburg property.

In addition, this item includes reclassifications of assets to “assets held for sale”, reducing property, plant and equipment in the amount of €172 million (12M 2012/13: €918 million; 9M 2013: €100 million). Of these, €113 million relates to the wholesale business in Vietnam held for sale and €26 million to portions of the Turkish location in Merter owned by METRO PROPERTIES.

 Download XLS (27KB)

€ million

Land and buildings

Other plant, business and office equipment

Assets under construction

Total

1

Including asset transfers from “assets held for sale” to property, plant and equipment

2

Disposals and transfers to IFRS 5 were shown as disposals in the previous year

Acquisition or production costs

 

 

 

 

As of 1/10/2012

13,112

8,710

359

22,182

Currency translation

−42

−28

−2

−72

Additions to consolidation group

43

0

0

44

Additions

721

207

132

411

Disposals2

−216

−184

−6

−406

Reclassifications under IFRS 52

−817

−488

−30

−1,335

Transfers

113

120

−234

−1

As of 31/12/2012 / 1/1/2013

12,266

8,337

218

20,822

Currency translation

−204

−128

−9

−341

Additions to consolidation group

3

0

0

3

Additions1

128

286

221

635

Disposals2

−26

−277

−20

−323

Reclassifications under IFRS 52

−133

0

0

−133

Transfers

124

85

−184

24

As of 30/9 / 1/10/2013

12,157

8,304

226

20,687

Currency translation

−260

−104

−6

−369

Additions to consolidation group

184

0

0

184

Additions

1301

441

3301

901

Disposals2

−312

−443

−14

−769

Reclassifications under IFRS 52

−165

−112

−5

−282

Transfers

−20

175

−273

−117

As of 30/9/2014

11,714

8,261

258

20,233

Depreciation/impairment losses

 

 

 

 

As of 1/10/2012

4,364

5,606

9

9,979

Currency translation

−4

−15

0

−19

Additions, scheduled

86

157

0

243

Additions, non-scheduled

30

86

9

126

Disposals2

−128

−172

−1

−302

Reclassifications under IFRS 52

−187

−323

−8

−517

Reversals of impairment losses

−2

−4

0

−6

Transfers

−14

7

0

−6

As of 31/12/2012 / 1/1/2013

4,147

5,342

9

9,498

Currency translation

−41

−64

−1

−106

Additions, scheduled

3101

4321

0

742

Additions, non-scheduled

841

321

1

117

Disposals2

−17

−239

−4

−261

Reclassifications under IFRS 52

−33

−1

0

−33

Reversals of impairment losses

0

−6

0

−6

Transfers

28

−2

1

27

As of 30/9 / 1/10/2013

4,478

5,493

6

9,978

Currency translation

−45

−56

0

−101

Additions, scheduled

385

557

0

943

Additions, non-scheduled

54

49

2

105

Disposals2

−167

−386

−1

−554

Reclassifications under IFRS 52

−46

−64

0

−110

Reversals of impairment losses

−10

−1

0

−11

Transfers

−43

2

0

−41

As of 30/9/2014

4,607

5,595

7

10,208

Carrying amount at 1/10/2012

8,748

3,105

350

12,202

Carrying amount at 31/12/2012

8,119

2,995

210

11,324

Carrying amount at 30/9/2013

7,679

2,810

220

10,709

Carrying amount at 30/9/2014

7,108

2,666

251

10,025

Restrictions on titles in the form of liens and encumbrances for property, plant and equipment amounted to €179 million (30/9/2013: €272 million).

Contractual commitments for the acquisition of property, plant and equipment in the amount of €128 million (30/9/2013: €125 million) were recorded.

Assets used by METRO GROUP under the terms of finance lease agreements were valued at €879 million (30/9/2013: €976 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 five years. The interest rates in the leases vary by market and date of signing between 4.4 and 6.7 per cent.

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 (22KB)

€ million

Up to 1 year

1 to 5 years

Over 5 years

Finance leases 30/9/2013

 

 

 

Future lease payments due (nominal)

232

737

1,449

Discount

−17

−164

−771

Net present value

215

573

678

Operating leases 30/9/2013

 

 

 

Future lease payments due (nominal)

1,536

4,789

4,047

 Download XLS (22KB)

€ million

Up to 1 year

1 to 5 years

Over 5 years

Finance leases 30/9/2014

 

 

 

Future lease payments due (nominal)

210

645

1,178

Discount

−15

−139

−600

Net present value

195

506

578

Operating leases 30/9/2014

 

 

 

Future lease payments due (nominal)

1,422

4,312

3,632

Future payments due on finance leases contain payments amounting to €42 million (30/9/2013: €42 million).

The nominal value of future lease payments due to METRO GROUP coming from the subleasing of assets held under finance leases amounts to €199 million (30/9/2013: €212 million, adjustment of previous year’s figures – see chapter Notes to the group accounting principles and methods).

The nominal value of future lease payments due to METRO GROUP coming from the subleasing of assets held under operating leases amounts to €470 million (30/9/2013: €538 million, adjustment of previous year’s figures – see chapter Notes to the group accounting principles and methods).

Profit or loss for the period includes payments made under leasing agreements amounting to €1,585 million (12M 2012/13: €1,627 million; 9M 2013: €1,231 million) and payments received under leasing agreements in the amount of €341 million (12M 2012/13: €381 million; 9M 2013: €279 million).

Contingent lease payments from finance and operating leases recognised as expenses during the period amount to €10 million (12M 2012/13: €12 million; 9M 2013: €10 million) and €55 million (12M 2012/13: €55 million; 9M 2013: €46 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 (22KB)

€ million

Up to 1 year

1 to 5 years

Over 5 years

1

Adjustment of previous year’s figures (see chapter notes to the group accounting principles and methods)

Finance leases 30/9/2013

 

 

 

Future lease payments due (nominal)

1

3

7

Discount

0

−1

−4

Net present value

1

2

2

Operating leases 30/9/2013

 

 

 

Future lease payments due (nominal)1

75

204

184

 Download XLS (22KB)

€ million

Up to 1 year

1 to 5 years

Over 5 years

Finance leases 30/9/2014

 

 

 

Future lease payments due (nominal)

0

0

0

Discount

0

0

0

Net present value

0

0

0

Operating leases 30/9/2014

 

 

 

Future lease payments due (nominal)

84

235

192

Due to the termination of finance leases from the perspective of the lessor, there are no nominal minimum lease payments in the current reporting period (30/9/2013: €11 million). There is no unguaranteed residual value in the reporting period (30/9/2013: €2 million). Thus, the resulting gross investment value also amounts to €0 (30/9/2013: €13 million). As a result, unrealised financial income is also €0 (12M 2012/13: €6 million; 9M 2013: €5 million).