3.2 Asset, financial and earnings position

Overall statement by the Management Board of METRO AG on the business development and situation of METRO

In financial year 2018/19, the growth of the global economy was noticeably slower than in the same period of the , but was still clearly positive overall. From a regional perspective, Western European countries in particular recorded lower growth rates, while the Eastern European and Asian regions continued to show steady growth despite falling short of the previous year’s level.

However, the Management Board can look back on a successful financial year in which great progress was made in implementing the transformation strategy and sales growth was accelerated. In the outlook view, in particular Eastern Europe (excluding Russia), Western Europe (excluding Germany) and Asia contributed to the good development. Growth was also shaped by expansion of the core business, . The consistent focus on the 2 core customer groups (hotels, restaurants and catering companies) and (independent retailer) also made a noticeable contribution to the good sales trend.

developed in line with expectations. Accordingly, the Management Board is satisfied with the development of the business as a whole, especially with the good earnings performance in Western Europe and Asia. for continuing operations including METRO China increased from €1.22 to €1.44. Accordingly, an attractive dividend will also be proposed to shareholders for financial year 2018/19.

In October 2019, METRO signed an agreement to sell a majority stake in METRO China to Wumei. As a result of the sale, METRO China is reported as a discontinued operation as of 30 September 2019 in accordance with 5.

Unless expressly stated otherwise, all presentations in the combined management report refer to continuing operations (excluding the hypermarket business and excluding METRO China).

Only the comparison of the outlook with actual business developments as well as the dividend proposal refer to the outlook issued for 2018/19 which includes METRO China.

Previous year
Period of 12 months, usually cited as reference for statements in an annual report.
Wholesale, METRO Wholesale
The METRO Wholesale segment comprises the METRO Wholesale sales line of METRO AG with 678 wholesale stores across 34 countries worldwide. This also includes the delivery business (Food Service Distribution) with the METRO delivery service and companies like the delivery specialists Classic Fine Foods, Pro à Pro and Rungis Express.
Short for hotel, restaurant and catering businesses. The HoReCa segment is an important customer group for METRO Wholesale.
The term ‘Traders’ at METRO Wholesale refers to the customer group of independent resellers such as operators of small grocery stores and kiosks, street food vendors, gas stations and wholesalers.
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation)
Profit or loss before interest result, income taxes, depreciation/amortisation/impairment losses/reversals of impairment losses on property, plant and equipment, intangible assets and investment properties. This key figure serves the purpose of comparing companies with accounting systems that follow different accounting rules.
Earnings per share (basic/diluted)
The earnings per share (basic) are calculated by dividing the profit or loss attributable to the shareholders of METRO AG by the weighted average of shares in circulation. The earnings per share (diluted) give additional consideration to the effect of so-called potential shares, such as those issued in the context of stock options.
IFRS (International Financial Reporting Standards)
Internationally applicable rules for financial reporting developed by the IASB. Contrary to the accounting rules under the German Commercial Code, the IFRS emphasise the informational function.