42. 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.

As of the beginning of financial year 2013/14, the Real Estate segment is no longer shown separately. Since then, segment-relevant information has been shown in the sales lines’ segments or in the Others segment. This change has no effect on data shown for the geographical segments.

METRO Cash & Carry

METRO Cash & Carry operates in the cash-and-carry sector in 28 countries in Europe, Asia and Africa through its METRO and MAKRO brands. In Germany, the portfolio is complemented by the C+C Schaper brand. 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.

Media-Saturn

Media-Saturn offers a comprehensive assortment of the latest brand products in consumer electronics retailing. The sales line is represented in 15 countries by its two strong sales brands Media-Markt and Saturn. In addition, Media-Saturn comprises the online retailer Redcoon, the Russian online shop 003.ru as well as the company 24–7 Entertainment.

Real

Real is a hypermarket operator in Germany where it operates both stationary stores and an online store. All stores offer a broad food assortment with a large proportion of fresh produce complemented by a non-food assortment.

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.

For more information about the segments, see the combined management report.

Aside from the information on the operating segments listed above, equivalent information is provided on the METRO GROUP 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 and reversals of impairment losses of property, plant and equipment, intangible assets and investment properties.
  • EBIT is the key ratio for segment reporting and 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 assets and property, plant and equipment (including additions to the consolidation groups) 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 accounted for using the equity method, 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 (23KB)

€ million

30/9/2013

30/9/2014

1

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

2

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

Segment assets

24,223

23,821

Non-current and current financial assets

327

72

Investments accounted for using the equity method

132

95

Cash and cash equivalents

2,564

2,406

Deferred tax assets

837

835

Entitlements to income tax refunds

297

223

Other entitlements to tax refunds1

368

464

Assets held for sale

12

9

Receivables from other financial transactions2

30

59

Other

20

18

Group assets

28,811

28,004

  • 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 (23KB)

€ million

30/9/2013

30/9/2014

1

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

2

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

Segment liabilities

14,645

14,839

Financial liabilities

7,963

7,068

Deferred tax liabilities

127

130

Income tax liabilities

181

198

Income tax provisions1

107

120

Other tax liabilities2

338

371

Liabilities from other financial transactions2

31

12

Liabilities to non-controlling interests2

82

76

Liabilities related to assets held for sale

77

139

Interest for other provisions1

47

47

Other

9

4

Group liabilities

23,605

23,005

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