12. Profit or loss for the period from discontinued operations after taxes

The Management Board of METRO AG decided in its meeting on 13 September 2018 to sell the hypermarket business including 80 real estate properties that are being used for this purpose and are owned by Real or METRO companies belonging to the Others segment. The decision was made against the backdrop of METRO deciding to focus exclusively on wholesale trade in the future.

The hypermarket business consists of 279 stores of the Real segment and their subsidiaries, most of which render procurement and online services for the Real segment. With the exception of 18 real estate companies and individual properties and a supplier, which are currently included in the Others segment, all assets and liabilities affected by the resolution form part of the Real segment. In the spirit of IFRS 5, they are collectively treated as a discontinued business segment from 30 September 2018 onwards and will be treated as such until their deconsolidation.

The current result of the hypermarket business together with all relevant net-income affecting consolidation elements in the group’s income statement were reclassified under the item ‘profit or loss for the period from discontinued operations after taxes’. To increase the economic meaningfulness of the earnings statement of the continued sector, its shares in the consolidation effects were also included in the discontinued section of the earnings statement as far as they were related to business relations that are to be upheld in the long term even after the planned disposal. The previous year’s figures on the income statement were adjusted accordingly.

As part of the annual impairment test, the goodwill of Real was reduced by €64 million in total, as were further tangible assets by €24 million. The resultant expenses form part of the ongoing earnings from discontinued operations. There were no other measurement effects pursuant to IFRS 5 Subsection 18 immediately prior to the initial classification as ‘held for sale’.

There was also no need for additional value adjustments pursuant to IFRS 5 Subsection 15, as the fair value less the costs to sell of the disposed business segment was higher than its carrying amount.

As a result, profit or loss for the period from discontinued operations after taxes is therefore made up as follows:

Profit or loss for the period from discontinued operations after taxes is attributable to the shareholders of METRO AG in the amount of €−110 million (2016/17: €−34 million). As in the previous year, non-controlling interests account for a profit share of €0 million.

In conjunction with the initiated disposal process, no considerable expenses have been incurred to date either in the continued or in the discontinued segment.

Other comprehensive income relating to the assets held for sale and liabilities amounts to –€1 million (2016/17: €3 million).

In METRO’s cash flow statement, cash flows from operating, investing and financing activities are shown separately for discontinued operations. The previous year’s figures in the cash flow statement were adjusted accordingly.