Consolidation group

Besides METRO AG, all companies indirectly or directly controlled by METRO AG are included in the consolidated financial statements if these companies individually or as a group are not immaterial to the consolidated financial statements. Control exists if there is a possibility to control a company’s financial and business policy through a majority of voting rights or according to the Articles of Association, company contract or contractual agreement in order to benefit from this company’s business activities.

METRO’s operational business is divided into the following 2 Segments:

• METRO Wholesale
• Real

Besides METRO AG, 203 German (30/9/2016: 186) and 215 international (30/9/2016: 215) companies were included in the consolidated financial statements.

The group of consolidated companies changed as follows in financial year 2016/17:

Deconsolidated companies are included as group companies up to the date of their disposal.

Mergers with other consolidated subsidiaries as well as the sales, each comprise 2 companies in the METRO Wholesale segment and 1 company in the Others segment.

The other disposals result in particular from 9 liquidations.

Additions due to newly founded companies concern the Others segment (22 companies), METRO Wholesale (4 companies) and Real (3 companies).

The acquisitions mainly relate to the acquisition of Pro à Pro (11 companies).

Effects from changes in the consolidation group that are of special significance are explained separately in the respective items.

For materiality reasons, 4 affiliated subsidiaries are not fully consolidated.

Structured entities

Structured entities within METRO concern leasing companies. The key purpose of the leasing companies is to acquire, lease out and manage assets. As of the closing date, 9 (30/9/2016: 11) structured entities were fully consolidated. There are no relationships with unconsolidated structured entities.

Investments accounted for using the equity method

22 associates (30/9/2016: 21) and 7 joint ventures (30/9/2016: 5) are recognised in the consolidated financial statements according to the equity method.

Another 2 companies (30/9/2016: 4) in which METRO AG indirectly or directly holds between 20 and 50% of the voting rights were valued at cost because they did not qualify as associates or because materiality considerations made the use of the equity method unnecessary.