Investments/divestments

In the short financial year 2013, METRO GROUP invested €691 million and thus €262 million less than in the previous year’s period. As announced, the expansion was focused and investments were used to support sales growth at existing stores. As a result, the decline in investments is to a large extent due to reduced expansion activities. This was reflected in a smaller number of 34 store openings including additions compared with 40 store openings in the previous year’s period. Adjusted for extensions of finance leases, investments in the modernisation and maintenance of the existing store network are slightly higher than in the previous year’s period.

Investments of METRO GROUP

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Change

 

 

 

 

 

 

€ million

12M 2012

9M 2012

9M 2013

absolute

%

METRO Cash & Carry

407

219

211

–8

–3.4

Media-Saturn

291

197

183

–14

–7.3

Real

115

128

63

–65

–50.6

Galeria Kaufhof

89

55

60

6

10.2

Real Estate

425

276

113

–163

–59.1

Others

111

79

61

–18

–22.7

METRO GROUP

1,437

954

691

–262

–27.5

In the short financial year 2013, METRO Cash & Carry invested €211 million and thus €8 million less than in the previous year’s period. The sales line set up a cash committee to focus more strongly on the efficient use of investment funds to boost sales growth. Specifically, the funds approved by the cash committee were invested in concept changes, IT and security-relevant modernisation. The slight decline in investments compared with the previous year’s period is the result of reduced expansion activities (ten new store openings in 9M 2013 compared with 21 new openings in 9M 2012). The targeted nature of the expansion activities is not fully reflected in these figures as the investments into land purchases and the construction of stores in connection with the expansion are included in the Real Estate segment. The expansion activities continued to focus on China and Russia, where six and two new METRO Cash & Carry stores, respectively, were added to the existing store network. One new METRO Cash & Carry store each was opened in India and Belgium. One store was closed in China.

In the short financial year 2013, investments of Media-Saturn amounted to €183 million, €14 million less than in the previous year’s period. The slight decline in investments can be attributed to reduced investments in the modernisation of the existing store network and expansion of the store network. 20 new stores were opened during the reporting period. The focus of the expansion was on Eastern Europe, where 14 new consumer electronics stores were opened. Six new stores were opened in Turkey and five new stores in Russia. Three new stores were added in Poland. In Western Europe (excluding Germany), the store network was expanded by four stores: two in the Netherlands and one each in Sweden and Spain. Two stores were opened in Germany. In addition, 14 stores were closed during the financial year. The withdrawal from the Chinese market resulted in the closure of seven stores. In addition, four stores were closed in Spain, two in Switzerland and one in Germany.

In the short financial year 2013, Real invested €63 million. That is €65 million less than in the previous year’s period. The decline in investments was the result of the withdrawal from the Russian, Romanian and Ukrainian markets and the planned disposal of the Polish business as well as a decline in new commitments from finance leases. Among other things, the invested funds were used to advance the business model through new concepts. In the short financial year 2013, Real expanded its store network by four stores in Poland and disposed of a total of 39 stores. This concerns, in particular, the divestment of Real Romania (20 stores), Real Russia (17 stores) and Real Ukraine (two stores). In addition, the existing store network was reduced by another two stores in Germany as a result of store closures.

Investments at Galeria Kaufhof totalled €60 million in the reporting year, an increase of €6 million over the previous year’s period. The investments primarily involved concept and modernisation measures. In the short financial year 2013, no new stores were opened and no existing department stores were closed.

Investments in the Real Estate segment amounted to €113 million in the reporting year and thus €163 million below the previous year’s level. The investments involved the expansion and maintenance of the real estate portfolio as well as the acquisition of real estate in connection with the expansion of the METRO Cash & Carry sales line. The decline in investments compared with the previous year’s period is largely due to the lower number of new store openings at METRO Cash & Carry.

Investments in the “others” segment totalled €61 million in the short financial year 2013 (9M 2012: €79 million). The investments were largely attributable to intangible assets and business and office equipment.

Investment obligations incurred for the acquisition of property, plant and equipment and intangible assets as well as investment properties amount to €129 million.

Information on this is included in the notes to the consolidated financial statements in no. 19 “Property, plant and equipment”, and no. 20 “Tangible assets” and No. 21 “Investment properties”.

From divestments, METRO GROUP received cash and cash equivalents of €1,487 million, which resulted primarily from the disposal of Real’s Eastern European business and the sale of real estate.

Additional information about divestments is included in the “Cash flow statement” in the consolidated financial statements as well as in the notes to the consolidated financial statements in no. 41 “Notes to the cash flow statement”.