31. Assets held for sale/liabilities related to assets held for sale

As of 30 September 2016, this item includes no assets held for sale or liabilities related to assets held for sale as all sales transactions of the previous year had been completed and no new sales were considered highly probable in the meaning of IFRS 5. The development of this item with a view to the sales transactions included in the previous year’s figure is explained in the following:

Sale of wholesale business in Vietnam

In financial year 2013/14, the Management Board of METRO AG decided to sell METRO Cash & Carry’s wholesale business in Vietnam and, to this effect, signed an agreement with the Thai retail group Berli Jucker Public Company Limited (BJC). After the general meeting of BJC had rejected the transaction, BJC’s majority shareholder TCC Holding Co., Ltd. (TCC) replaced BJC as party to the transaction at unchanged economic conditions, according to agreements from 18 February 2015 and 22 July 2015. The transaction was finally completed in December 2015. As a result, the Vietnamese wholesale business including the associated real estate portfolio was deconsolidated in the quarterly financial statements as of 31 December 2015. “Assets held for sale” increased by €139 million from €233 million to €372 million between 30 September 2015 and the date of deconsolidation of the company. Correspondingly, “liabilities related to assets held for sale” increased by €186 million from €194 million to €380 million. The increase in cash and financial liabilities was primarily due to a preparatory transaction of the buyer to redeem the external financing. The other changes stem from the continuation of operations. The breakdown of assets and liabilities disposed of in the context of the deconsolidation is shown in the following overview:

 Download XLS (23KB)

€ million

 

Assets

 

Property, plant and equipment

131

Other financial and non-financial assets (non-current)

54

Inventories

46

Trade receivables

4

Other financial and non-financial assets (current)

23

Cash and cash equivalents

114

 

372

Liabilities

 

Provisions for post-employment benefits plans and similar obligations

1

Trade liabilities

60

Provisions (current)

6

Financial liabilities (current)

225

Other financial and non-financial liabilities (current)

88

 

380

The EBIT contribution resulting from the deconsolidation amounts to €446 million. It is shown in other operating income, at €451 million, and in general administrative expenses, at €5 million. It is allocated fully to the METRO Cash & Carry segment. Additional expenses of €29 million were recognised in the net financial result, with the currency translation differences from the translation of the Vietnamese financial statement data that were recognised in equity outside of profit or loss until divestment accounting for €27 million of this total. In addition, income tax expenses of €79 million were recognised. No expenses were incurred in connection with the measurement of the disposal group at fair value less costs to sell. The transaction has no impact on other comprehensive income.

Real estate

The value of individual real estate properties held for sale changed from €17 million to €0 million during financial year 2015/16. On the one hand, reclassifications from non-current assets added €14 million to this item. On the other, the sale of real estate assets in the amount of €30 million caused “assets held for sale” to decline. In addition, this item was reduced to €0 million by the reintegration of real estate assets into non-current assets in the amount of €1 million.