20. Property, plant and equipment

As of 30 September 2013, property, plant and equipment totalling €10,709 million (30/9/2012: €12,202 million; 31/12/2012: €11,324 million) were recognised. At €235 million (9M 2012: €+123 million; 12M 2012: €+70 million), the decline in property, plant and equipment is due to negative currency effects. In the current financial year, these apply mainly to Russia, Turkey and Japan.

In addition, investment activities during the current financial year, which are reflected in “additions” and “additions to consolidation group”, were more than offset by scheduled depreciation and impairment losses. This led to an additional decrease of property, plant and equipment in the amount of €224 million (9M 2012: €–4 million; 12M 2012: €+75 million).

Disposals of property, plant and equipment totalling €162 million (9M 2012: €603 million; 12M 2012: €1,525 million) also contributed to this decline. These include reclassifications of assets to “assets held for sale” in the amount of €100 million (9M 2012: €352 million; 12M 2012: €1,170 million).

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€ million

Land and buildings

Other plant, business and office equipment

Assets under construction

Total

1

Including asset transfers to “assets held for sale”

2

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

Acquisition or production costs

 

 

 

 

As of 1/1/2012

13,491

8,775

300

22,566

Currency translation

104

97

5

206

Additions to consolidation group

2

0

0

2

Additions

127

314

381

822

Disposals1

–694

–663

–65

–1,422

Transfers

84

187

–263

8

As of 30/9 / 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

722

207

132

411

Disposals1

–1,033

–672

–36

–1,741

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

Additions2

128

286

221

635

Disposals

–1591

–2771

–20

–456

Transfers

124

85

–184

24

As of 30/9/2013

12,157

8,304

226

20,687

Depreciation

 

 

 

As of 1/1/2012

4,364

5,535

6

9,905

Currency translation

26

57

0

83

Additions, scheduled

337

469

0

806

Impairment losses

16

7

0

23

Disposals

–2951

–5241

0

–819

Reversals of impairment losses

–2

0

0

–2

Transfers

–80

63

2

–15

As of 30/9 / 1/10/2012

4,364

5,606

9

9,979

Currency translation

–4

–15

0

–19

Additions, scheduled

86

157

0

243

Impairment losses

30

86

9

126

Disposals1

–315

–495

–9

–819

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

3102

4322

0

742

Impairment losses

842

322

1

117

Disposals

–501

–2401

–4

–294

Reversals of impairment losses

0

–6

0

–6

Transfers

28

–2

1

27

As of 30/9/2013

4,478

5,493

6

9,978

Carrying amount at 1/1/2012

9,127

3,240

294

12,661

Carrying amount at 30/9/2012

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

Limitations to the disposal of assets in the form of liens and encumbrances amounted to €272 million (30/9/2012: €301 million; 31/12/2012: €288 million).

Contractual commitments for the acquisition of property, plant and equipment in the amount of €125 million (30/9/2012: €311 million; 31/12/2012: €190 million) were recorded. €0 million (30/9/2012: €8 million; 31/12/2012: €1 million) of this amount is related to the planned disposal of Real’s Eastern European business.

Assets used by the group under the terms of finance lease agreements were valued at €976 million (30/9/2012: €1,275 million; 31/12/2012: €1,026 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 4.6 and 7.5 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:

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€ million

Up to 1 years

1 to 5 years

Over 5 years

Finance leases 31/12/2012

 

 

 

Future lease payments due (nominal)

251

851

1,756

Discount

–15

–232

–924

Present value

236

619

832

Operating leases 31/12/2012

 

 

 

Future lease payments due (nominal)

1,556

4,949

4,469

 

 

 

 

 

 

 

 

€ million

Up to 1 years

1 to 5 years

Over 5 years

Finance leases 30/9/2012

 

 

 

Future lease payments due (nominal)

249

887

1,820

Discount

–15

–238

–957

Present value

234

649

862

Operating leases 30/9/2012

 

 

 

Future lease payments due (nominal)

1,501

4,725

4,226

 

 

 

 

 

 

 

 

€ million

Up to 1 years

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

Present value

215

573

678

Operating leases 30/9/2013

 

 

 

Future lease payments due (nominal)

1,536

4,789

4,047

As of 30 September 2013, the present values of liabilities from finance leases in 2013 include future payments with maturities of up to one year totalling €5 million (31/12/2012: €32 million), of one to five years totalling €17 million (31/12/2012: €56 million) and of more than five years totalling €49 million (31/12/2012: €184 million) related to Real’s Eastern European business, which is held for sale.

The amounts shown for future payments due on operating leases (nominal) as of 30 September 2013 concern future payments with terms of up to one year totalling €80 million (31/12/2012: €97 million), of one to five years totalling €262 million (31/12/2012: €337 million) and of more than five years totalling €211 million (31/12/2012: €353 million) from Real’s Eastern European business held for sale.

Future payments due on finance leases contain payments amounting to €42 million (30/9/2013: €42 million; 31/12/2012: €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 €178 million (30/9/2012: €178 million; 31/12/2012: €176 million).

The nominal value of future lease payments due to METRO GROUP coming from the subleasing of assets held under operating leases amounts to €921 million (30/9/2012: €959 million; 31/12/2012: €958 million). Of these lease payments of €921 million as of 30 September 2013, €36 million (31/12/2012: €43 million) is related to the planned disposal of Real’s Eastern European business.

Profit or loss for the period includes payments made under leasing agreements amounting to €1,231 million (9M 2012: €1,187 million; 12M 2012: €1,584 million) and payments received under subleasing agreements amounting to €279 million (9M 2012: €304 million; 12M 2012: €407 million).

Contingent lease payments from finance and operating leases recognised as expenses during the period amount to €10 million (9M 2012: €7 million; 12M 2012: €9 million) and €46 million (9M 2012: €21 million; 12M 2012: €78 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:

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€ million

Up to 1 years

1 to 5 years

Over 5 years

Finance leases 31/12/2012

 

 

 

Future lease payments due (nominal)

3

4

7

Discount

0

–1

–5

Present value

3

3

2

Operating leases 31/12/2012

 

 

 

Future lease payments due (nominal)

33

107

109

 

 

 

 

 

 

 

 

€ million

Up to 1 years

1 to 5 years

Over 5 years

Finance leases 30/9/2012

 

 

 

Future lease payments due (nominal)

3

4

7

Discount

0

–1

–5

Present value

3

3

2

Operating leases 30/9/2012

 

 

 

Future lease payments due (nominal)

33

105

111

 

 

 

 

 

 

 

 

€ million

Up to 1 years

1 to 5 years

Over 5 years

Finance leases 30/9/2013

 

 

 

Future lease payments due (nominal)

1

3

7

Discount

0

–1

–4

Present value

1

2

2

Operating leases 30/9/2013

 

 

 

Future lease payments due (nominal)

16

47

51

From the perspective of the lessor, the unguaranteed residual value must be added to the nominal minimum lease payments of €11 million (30/9/2012: €14 million; 31/12/2012: €14 million) in existing finance leases. This amounted to €2 million (30/9/2012: €3 million; 31/12/2012: €3 million). The resulting gross investment amount is €13 million (30/9/2012: €17 million; 31/12/2012: €17 million). In addition, there is an unrealised financial income of €5 million (9M 2012: €6 million; 12M 2012: €6 million).