43. Segment reporting

The segmentation corresponds to the group’s internal controlling and reporting structures and is generally based on the division of the business into individual sectors.

METRO Cash & Carry

METRO Cash & Carry operates in the cash-and-carry sector in 26 countries in Europe, Asia and Africa through its METRO and MAKRO brands. Its broad product and service range is geared to commercial customers, particularly to hotel and restaurant owners, catering firms, independent retailers as well as service providers and public authorities. In August 2015, METRO GROUP acquired the Classic Fine Foods group, which is active in 25 mostly Asian cities in 14 countries and supplies premium hotels, restaurants and catering firms.

Media-Saturn

Media-Saturn offers a comprehensive assortment of the latest brand-name products in consumer electronics retailing. The sales line is represented in 15 countries with its two strong sales brands Media Markt and Saturn. In addition, Media-Saturn comprises the online retailer Redcoon, the Russian online shop 003.ru as well as the live shopping portal iBOOD.

Real

Real is a hypermarket operator in Germany where it operates both physical stores and an online store. All stores offer a broad food assortment with a large proportion of fresh produce that is complemented by a non-food assortment.

Discontinued operations

Discontinued operations comprise the Galeria Kaufhof group. In the past, Galeria Kaufhof was shown as a separate segment.

For more information about the segments, see the combined management report.

Aside from the information on the operating segments listed above, equivalent information is provided on the METRO GROUP regions. Here, a distinction is made between the regions Germany, Western Europe (excluding Germany), Eastern Europe and Asia/Africa.

The key components of segment reporting are as follows:

  • External sales represent sales of the operating segments to third parties outside the group.
  • Internal sales represent sales between the group’s operating segments.
  • Segment EBITDAR represents EBITDA before rental expenses less rental income.
  • Segment EBITDA comprises EBIT before depreciation and reversals of impairment losses of property, plant and equipment, intangible assets and investment properties.
  • EBIT is the key ratio for segment reporting and describes operating earnings for the period before net financial result and income taxes. Intra-group rental contracts are shown as operating leases in the segments. The properties are leased at market rates. In principle, store-related risks and impairment risks related to non-current assets are only shown in the segments where they represent group risks. In analogy, this also applies to deferred assets and liabilities, which are only shown at segment level if this was also required in the consolidated balance sheet.
  • Segment investments include additions to non-current intangible assets and property, plant and equipment (including additions to the consolidation groups) as well as investment properties except for additions due to the reclassification of assets held for sale as non-current assets.
  • Segment assets include non-current and current assets. They do not include mostly financial assets, investments accounted for using the equity method, tax items, cash and cash equivalents and assets allocable to discontinued operations.

The section earnings position in the combined management reportincludes a presentation of figures before special items for the earnings components EBIT and EBITDA, which are shown in segment reporting, as well as for the net financial result, income taxes, profit or loss for the period (before and after non-controlling interests) and earnings per share, as these figures are used in METRO GROUP’s internal management system.

Special items include transactions that do not regularly recur such as restructurings or changes to the group portfolio.

The reconciliation from segment assets to group assets is shown in the following table:

 Download XLS (24KB)

€ million

30/9/2014

30/9/2015

1

Adjustment of previous year’s figures (see notes to the group accounting principles and methods)

2

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

3

Included in the balance sheet item other financial and non-financial assets (current)

4

Included in the balance sheet items other financial and non-financial assets (non-current and current)

Segment assets1, 2

21,723

21,142

Segment assets Galeria Kaufhof

2,249

0

Non-current and current financial assets

72

123

Investments accounted for using the equity method

95

184

Cash and cash equivalents

2,406

4,415

Deferred tax assets

835

724

Entitlements to income tax refunds

223

202

Other entitlements to tax refunds3

464

358

Assets held for sale

9

5

Receivables from other financial transactions4

59

479

Other

18

23

Group assets

28,156

27,656

  • Segment liabilities include non-current and current liabilities. They do not include, in particular, borrowings, tax items and liabilities allocable to discontinued operations.

The reconciliation from segment liabilities to group liabilities is shown in the following table:

 Download XLS (24KB)

€ million

30/9/2014

30/9/2015

1

Adjustment of previous year’s figures (see notes to the group accounting principles and methods)

2

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

3

Included in the balance sheet items other provisions (non-current) and provisions (current)

4

Included in the balance sheet items other financial and non-financial liabilities (non-current and current)

Segment liabilities1, 2

14,105

14,103

Segment liabilities Galeria Kaufhof

885

0

Financial liabilities

7,068

7,366

Deferred tax liabilities

130

142

Income tax liabilities

198

148

Income tax provisions3

120

46

Other tax liabilities4

371

331

Liabilities from other financial transactions4

12

25

Liabilities to non-controlling interests4

76

159

Liabilities related to assets held for sale

139

142

Interest for other provisions4

47

16

Other

4

4

Group liabilities

23,157

22,484

  • In principle, transfers between segments are made based on the costs incurred from the group’s perspective.