Investments/divestments

In financial year 2014/15, METRO GROUP invested €1,411 million and thus €410 million more than in the same period of the previous year. The fact that investments increased in spite of reduced expansion efforts is due in particular to the acquisitions of the Classic Fine Foods group and iBOOD, concept and modernisation measures as well as rental contract extensions. Among other things, 57 hypermarkets were refurbished along the lines of the Essen store model as part of the Big Bang project at Real in order to better cater to customer needs. The reduced expansion activities are reflected in the smaller number of 58 store openings including additions compared with 68 store openings in the previous year’s period.

Investments of METRO GROUP

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Change

 

 

 

 

 

€ million1

2013/141

2014/15

Absolute

%

1

Adjustment of previous year’s figures due to discontinued operations (see the notes to the consolidated financial statements – notes to the group accounting principles and methods)

METRO Cash & Carry

441

750

309

69.9

Media-Saturn

244

256

12

5.0

Real

172

241

68

39.7

Others

144

165

21

14.6

METRO GROUP

1,001

1,411

410

41.0

In financial year 2014/15, METRO Cash & Carry invested €750 million and thus €309 million more than in the previous year’s period. The key reasons for this substantial increase in investments include the acquisition of the Classic Fine Foods group, concept and modernisation measures as well as sustainability projects. The expansion activities continued to focus on Russia and China where 11 and 6 new METRO Cash & Carry stores, respectively, were added to the existing store network. 2 new stores were opened in India, while 1 new store each was opened in Turkey, Croatia and Serbia. Store closures concerned 3 stores in Bulgaria, 2 in China and 1 each in Italy, Kazakhstan, Romania, Serbia and Ukraine. As announced, the sales line’s 5 stores in Denmark were closed and its 9 stores in Greece were sold as planned.

In financial year 2014/15, investments of Media-Saturn amounted to €256 million, €12 million more than in the previous year’s period. The increase in investments is primarily due to the acquisition of iBOOD. At the same time, the pace of expansion slowed while investments in concept and modernisation measures increased. Media-Saturn continued its selective expansion (including new small formats) in Europe during the reporting period, opening 36 stores (previous year: 50) across the continent. The sales line opened 18 consumer electronics stores in Eastern Europe: 8 in Poland, 7 in Russia and 3 in Turkey. 15 new stores were added in Western Europe (excluding Germany), including 6 in the Netherlands, 5 in Spain, 2 in Switzerland and 1 each in Austria and Belgium. 3 stores were opened in Germany. As part of its portfolio optimisation efforts, Media-Saturn closed 15 stores during the financial year: 7 stores in Italy, 3 in Russia, 2 in the Netherlands and 1 each in Germany, Belgium and Turkey.

Real invested €241 million in financial year 2014/15, €68 million more than in the previous year’s period. The increase in investments was essentially due to lease extensions and investments in store modernisations. The investment funds were used to advance the business model through concept changes. Following the successful remodelling of 50 stores along the lines of the Essen store model as part of the Big Bang project in the previous year, Real modernised 57 additional stores across Germany during the reporting period. As planned, Real closed 14 stores in Germany during financial year 2014/15. Following the sale of Real’s Eastern European business, the sales line’s 4 remaining stores in Romania are now shown in the Others segment.

Investments in the Others segment totalled €165 million in financial year 2014/15 (2013/14: €144 million) and related mostly to concept and modernisation measures as well as intangible assets. In addition, investments in real estate were made through the exercise of purchasing rights.

Investment obligations incurred for the acquisition of property, plant and equipment and intangible assets amounted to €157 million.

For more information, see the notes to the consolidated financial statements in no. 20 – other intangible assets and no. 21 – property, plant and equipment.

METRO GROUP received cash and cash equivalents in the amount of €2,679 million from divestments (including disposals of subsidiaries and discontinued operations). These essentially stemmed from the sale of the shares in the Galeria Kaufhof group.

For more information about divestments, see the cash flow statement in the consolidated financial statements as well as the notes to the consolidated financial statements in no. 42 – notes to the cash flow statement.