Capital structure

As of 30 September 2019, the METRO group balance sheet reports equity attributable to continuing and discontinued operations in the amount of €2.7 billion (30/9/2018: €3.1 billion). The profit or loss for the period from continuing operations leads to an increase in reserves retained from earnings. The profit or loss for the period from discontinued operations as well as dividend payments for financial year 2017/18 have an opposite effect. The equity ratio stands at 18.9% (30/9/2018: 20.2%).

Negative reserves retained from earnings are not due to a history of loss but to a reclassification of the equity item ‘net assets attributable to the former METRO GROUP’, recognised in the combined financial statements of the MWFS GROUP as of 1 October 2016, to the legally defined equity items.

€ million

Note no.

30/9/2018

30/9/2019

1

Adjustment of previous year according to explanation in notes.

Equity

31

3,074

2,735

Share capital

 

363

363

Capital reserve

 

6,118

6,118

Reserves retained from earnings1

 

−3,449

−3,778

Non-controlling interests

 

41

32

  • For more information about our equity, see the notes to the consolidated financial statements in the number listed in the table.

related to continuing operations decreased by €0.2 billion in the adjusted year-on-year comparison, amounting to €2.9 billion as of 30 September 2019 (30/9/2018: €3.1 billion after adjustment). Cash and cash equivalents decreased by €0.4 billion as of 30 September 2019 to €0.5 billion (30/9/2018: €0.9 billion after adjustment). By contrast, financial liabilities decreased by €0.6 billion to €3.4 billion (30/9/2018: €4.0 billion after adjustment).

€ million

30/9/2018

30/9/2018 adjusted1

30/9/2019

1

Adjusted for effects of the discontinued business segment.

2

Shown in the balance sheet under other financial assets (current).

Cash and cash equivalents

1,298

906

500

Short-term financial investments2

2

2

11

Financial liabilities (incl. finance leases)

4,010

4,010

3,369

Net debt

2,710

3,102

2,858

As of 30 September 2019, non-current liabilities of the continuing operations amounted to €3.4 billion (30/9/2018: € 3.4 billion). While pension provisions increased by €76 million in year-on-year comparison, mainly due to the decrease in the applicable interest rate, financial liabilities decreased by €92 million.

As of 30 September 2019, METRO’s current liabilities amounted to €8.2 billion (30/9/2018: €8.3 billion). The decrease of €0.4 billion compared to the adjusted ’s figure is mainly due to the repayment of a bond in the amount of €0.5 billion. The other balance sheet items showed a stable development; only trade payables increased by €69 million, mainly due to .

Compared to 30 September 2018, the debt ratio increased from 79.8% by 11.3 percentage points to 81.1%. It should be noted here that current liabilities of €2.6 billion (30/9/2018: €2.4 billion) include liabilities related to assets held for sale.

  • For more information about the maturity, currency and interest rate structure of financial liabilities as well as the credit facilities, see the notes to the consolidated financial statements in no. 36 – financial liabilities.

€ million

Note no.

30/9/20181

30/9/2018 adjusted2

30/9/2019

1

Adjustment of previous year according to explanation in notes.

2

Adjusted for effects of the discontinued business segment.

Non-current liabilities

 

3,427

3,426

3,419

Provisions for post-employment benefits plans and similar obligations

32

468

468

543

Other provisions

33

126

126

132

Financial liabilities

34, 36

2,590

2,590

2,498

Other financial and other non-financial liabilities

34, 37

123

123

127

Deferred tax liabilities

25

120

119

119

Current liabilities

 

8,705

8,706

8,343

Trade liabilities

34, 35

3,993

3,503

3,572

Provisions

33

274

203

168

Financial liabilities

34, 36

1,420

1,420

871

Other financial and other non-financial liabilities

34, 37

1,136

954

962

Income tax liabilities

34

191

188

169

Liabilities related to assets held for sale

43

1,691

2,438

2,601

  • For more information about the development of liabilities, see the notes to the consolidated financial statements in the numbers listed in the table. Information about contingent liabilities and other financial liabilities can be found in the notes to the consolidated financial statements in no. 45 – contingent liabilities and no. 46 – other financial commitments.
Net debt
The net debt results from the balance of the financial liabilities (including liabilities from finance leases), cash and cash equivalents less financial investments. Financial investments include short-term bank deposits and short-term liquid debt instruments.
Glossary
Previous year
Period of 12 months, usually cited as reference for statements in an annual report.
Glossary
Currency effects
Currency effects result from situations where the same amount of currency units is translated into another currency at differing exchange rates.
Glossary