Expected earnings position: outlook for METRO GROUP and its segments

Change of the financial year and segment reporting

In response to a decision made by the Annual General Meeting on 23 May 2012, we changed our financial year. As a result, the financial year no longer reflects the calendar year. It now runs from 1 October to 30 September of the following calendar year.

Also effective 1 October 2013, we dissolved our Real Estate segment and will report the segment-relevant information in the segments of the sales lines or in the “others” segment.

All of the following comparisons are based on

  • the financial year 2013/14 with the corresponding pro forma period for the previous year (1 October 2012 to 30 September 2013) as well as on
  • the new segment reporting system, that is, excluding the Real Estate segment

Portfolio changes

It is possible to compare the financial year 2013/14 with the same period in the previous year only to a limited extent due to portfolio actions taken or announced in 2012/13.

This applies in particular to the divestment of Real’s activities in Eastern Europe (excluding Turkey), an action that was contractually agreed on, but that was spread out throughout 2013 because the respective anti trust authorities issued their approvals gradually.

Expected sales development at METRO GROUP in 2013/14

For the financial year 2013/14, we expect to see a slight rise in overall sales – even though economic momentum will remain below average and adjusted for implemented and announced portfolio measures. We used virtually unchanged exchange rates in preparing this forecast.

In like-for-like sales, we expect to see a trend improvement following the previous year’s level of –1.3 per cent and a level of sales that will roughly equal the previous year’s level.

Expected earnings development at METRO GROUP in 2013/14

Earnings during the financial year 2013/14 will also be shaped by the below-average pace of the economy. As a result, we will continue to closely focus on efficient structures and strict cost management in 2013/14.

The announced changes in the real estate strategy will impact earnings. Last year, EBIT before special items of €2,000 million contained income from real estate sales that exceeded typical levels. In addition, the comparative base is reduced by the positive contributions from the divestment of Real’s business in Eastern Europe. Adjusted for these effects totalling about €300 million, the comparative level from the previous year is €1.7 billion. We intend to markedly exceed this level in the financial year 2013/14. We used virtually unchanged exchange rates in preparing this forecast.

Expected sales development of the segments of METRO GROUP in 2013/14

In our forecast for the segments, we are applying the previously discussed expectations regarding general economic conditions and specific sector trends.

At our sales lines METRO Cash & Carry and Media-Saturn, we expect to see a slight increase in sales. Like-for-like sales should remain at roughly the same level as in the previous year, just as they should for METRO GROUP as a whole. At Real Germany and Galeria Kaufhof, we expect like-for-like sales to stay at last year's level. Overall sales growth at Real Germany will lag slightly behind like-for-like sales growth due to the streamlining of the store network. At Galeria Kaufhof, this metric will be roughly equal to like-for-like sales growth due to lack of expansion.

We used virtually unchanged exchange rates in preparing this forecast.

Expected EBIT development of the segments of METRO GROUP in 2013/14

EBIT before special items will be shaped in large part by METRO Cash & Carry and Media-Saturn during the financial year 2013/14. Earnings at Media-Saturn should rise sharply. At METRO Cash & Carry, Real and Galeria Kaufhof, we expect to see a slight rise in earnings following adjustments for the unusually large amounts of income generated by real estate sales (at METRO Cash & Carry and Galeria Kaufhof) as well as for positive earnings contributions from the divestment of Real’s business in Eastern Europe.

We used virtually unchanged exchange rates in preparing this forecast.