METRO GROUP’s rigorous focus on creating added value for customers is also reflected in our internal management system. The primary objective is to create sustained value for the company by focusing on added value for customers. For this reason, METRO GROUP has been using value-oriented performance metrics since 2000 to plan, manage and monitor business activities. The corresponding value drivers that have a direct impact on value creation form the core of our operational management system. Our focus in this process is on growth (sales), operational efficiency (EBIT) and optimised capital deployment.
Please note that, in line with the formal specifications of German Accounting Standard No. 20 (GAS 20), only the most meaningful key performance indicators (sales growth as well as EBIT before special items) are part of the outlook and the comparison with actual business developments in the following year that is based on this outlook. Voluntary forecasts of other key figures will no longer be included in the outlook, but in the respective chapters of the combined management report, which are indicated in the following. Unless otherwise stated, the key figures in line with the consolidated financial statements, which are prepared pursuant to International Financial Reporting Standards (IFRS), are used.
Key performance indicators: earnings position
For METRO GROUP as a retail company, sales growth represents a key operational performance indicator. As a result, sales growth is one of the key metrics of METRO GROUP and is reported both as total sales in euros and as like-for-like sales in local currency. To enhance its assessment of operational developments, the Management Board also regularly informs itself about the key drivers of sales development, such as the online or delivery business.
Alongside sales growth, EBIT before special items is one of the group’s key performance indicators. Adjustment for special items reflects a focus on operational developments and serves to enhance comparisons between the reporting periods.
For more information about special items, see the economic report – asset, financial and earnings position – earnings position.
Earnings per share and profit or loss for the period are also included in METRO GROUP’s key performance indicators. They integrate the tax and net financial result into management of the earnings position and enable shareholders to better assess the group’s earnings position.
For more information about these key performance indicators, see the economic report – asset, financial and earnings position – earnings indicators.
Key performance indicators: financial and asset position
METRO GROUP manages its financial and asset position to ensure the long-term liquidity of group companies and cover their funding requirements in a cost-efficient manner.
For more information about the financial and asset position, see the economic report – asset, financial and earnings position – financial and asset position.
Performance metrics include investments, which are planned and reported on aggregate group level as well as separately for the sales lines. In addition, the Management Board conducts differentiated assessments of various investments (for example, expansion and online business) with a view to enhancing customer value and METRO GROUP’s company value.
Aside from the focus on investment, regular net working capital analyses are carried out to ensure a focus on operations and optimised capital deployment.
For more information about the composition of net working capital, see the notes to the consolidated financial statements in no. 42 – notes to the cash flow statement.
Investments and net working capital not only impact customer benefits and the company’s value creation, but also have an effect on the company’s indebtedness and financial position. In this context, cash flow before financing activities and net debt serve as key performance indicators for liquidity and the capital structure.
For more information on these key performance indicators, see the economic report – asset, financial and earnings position – financial and asset position.
Value-oriented performance metrics
As METRO GROUP’s management system is strongly focused on value creation for the company, it also comprises value-oriented key performance indicators such as EBIT after cost of capital (EBITaC) and return on capital employed (RoCE), which are based on the above-mentioned operational key performance indicators.
For further details on these performance metrics, please see the economic report – asset, financial and earnings position – earnings position.