Amfori Business Social Compliance Initiative (Amfori BSCI)
Founded in 2003, this global business association for open and sustainable trade works to ensure that production in all supplier countries complies with minimum social standards. The initiative aligns its standards with the UN’s Universal Declaration of Human Rights and the conventions of the International Labour Organization (ILO).
A procedure that assesses an organisation’s processes and structures according to previously formulated standards and guidelines. Audits shed light on the effectiveness of process optimisation measures. If an audit is conducted by an external auditor, the certificate issued after the review can be used as evidence of adherence to standards.
Carbon Disclosure Project (CDP)
The unaffiliated organisation was founded in London in 2000. It aims to disclose companies’ CO2 emissions as well as their climate risks, thereby contributing to the transparency of their corporate financial reporting on climate-relevant data. To this end, the CDP conducts annual company surveys.
Commercial Paper Programme
Ongoing capital market programme typical of money markets that covers short-term financing needs. It facilitates the issuance of commercial papers (CP) as discounted, unsecured bearer bonds without standardised terms of maturity.
Committee of Sponsoring Organizations of the Treadway Commission (COSO)
US-based private-sector organisation that developed and published a standard for internal controls in 1992 that is recognised by the U.S. Securities and Exchange Commission. In 2004, this standard was updated and the COSO ERM (Enterprise Risk Management – Integrated Framework), also known as COSO II, was published.
All measures specifying compliance with legal requirements as well as social guidelines and values by a company and its employees.
Currency effects result from situations where the same amount of currency units is translated into another currency at differing exchange rates.
Delivery (Food Service Distribution, FSD)
Delivery service for professional customers. The delivery segment includes sales from transactions without customer contact with a METRO store. Customers order items online or by telephone and receive their order delivered at the agreed time. In recent years, this type of purchasing has become much more prevalent.
A central element of HR policy that harnesses the diversity of employees for corporate success in terms of gender, age, ethnicity, beliefs, sexual identities and potential disabilities.
Dow Jones Sustainability Indices (DJSI)
An index family that measures the sustainability of the company. The measurement is comprised of economic, environmental and social criteria. For listed companies, the focus is on corporate management, employee policy and transparency, compliance with human rights and risk management. Among all sustainability indices, the DJSI family carries a particular cachet in terms of quality.
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.
EBIT (Earnings Before Interest and Taxes)
Profit or loss before financial result and (income) taxes. Due to its independence from different forms of financing and tax systems, this key figure is also used for international comparison with other companies, among other things.
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.
EVA (Economic Value Added)
Value-oriented key figure that depicts the absolute value contribution of a company created in a single period under consideration of a risk-adjusted interest rate. It is the difference between the company profit after tax and the cost of capital on the average capital employed.
Recognised fair value. Amount that would be received in return for the disposal of an asset or paid for the assignment of a debt in an ordinary transaction conducted between market participants on the assessment date.
Under the global term food, METRO summarises the following categories of goods: fresh foods, durable foods, nutrients, frozen foods and drinks of all kinds, as well as luxury foods, dietary supplements and pet food, but also detergents, cleansers and cleaning agents, which are sometimes also labelled as near-food. All other goods are considered non-food items.
Contractually regulated form of organisation in which the franchisor grants the independent franchisees from the Traders segment the right to distribute certain goods or services using a name or trademark of the franchisor. METRO offers a variety of franchise concepts in different countries.
Free cash flow
Adjusted EBITDA − leasing-payments − cash investments (excluding mergers and acquisitions) +/− changes in net working capital.
Free cash flow conversion
(Adjusted EBITDA − leasing-payments − cash investments (excluding mergers and acquisitions) +/− changes in net working capital) / (adjusted EBITDA − leasing-payments).
Global Food Safety Initiative (GFSI)
The initiative was established in 2000. It is the world’s largest organisation for the improvement of food safety. The initiative promotes the establishment of international audits to evaluate food suppliers.
A private sector organisation that certifies agricultural and aquacultural products. The standard for ‘good agricultural practice’ (GAP) resulted from an initiative of European retail companies.
Statutory and factual regulatory framework for the management and supervision of a company.
Governance management system
System for controlling all management and monitoring processes of a company. The METRO governance management system comprises the risk management system, the internal control system, the compliance management system and the internal auditing system.
Short for hotel, restaurant and catering businesses. The HoReCa segment is an important customer group for METRO.
IASB (International Accounting Standards Board)
An independent international body with head offices in London that develops and continually revises the International Financial Reporting Standards (IFRS).
Interpretation on IFRS prepared by the IFRS Interpretations Committee (or its predecessor) and approved by the IASB.
IFRS 16 – Leases
Standard adopted by the IASB in January 2016 regarding the handling of leases. Under the new rules (right-of-use model), lessees must recognise leases in most cases as rights of use and lease liabilities in the balance sheet.
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.
ISAE (International Standard on Assurance Engagements)
Standards for the procedure of auditors for assurance engagements published by the International Auditing and Assurance Standards Board and intended for uniform application worldwide.
Like-for-like sales growth
Term for sales growth in local currency on a comparable area or with respect to a comparable group of locations or merchandising concepts such as online retail and delivery. The figure only includes sales of locations with a comparable history of at least 1 year. Locations affected by openings, closures or significant refurbishments during the reporting period or comparison year are excluded.
Calculation of the fair value of financial instruments on the basis of market prices at a particular assessment date.
The net debt results from the balance of the financial liabilities (including from leases), cash and cash equivalents less financial investments. Financial investments include short-term bank deposits and short-term liquid debt instruments.
Net Promoter Score (NPS)
Key figure that is used to provide information regarding the performance and customer satisfaction of a company. A standardised customer survey provides ratings from customers that can be used to calculate a comparable cross-company measured value.
Net working capital
The net working capital includes inventories, trade receivables and receivables due from suppliers included in the item other financial and non-financial assets. Trade liabilities are deducted from the total amount of these items.
Combination of traditional store-based retail with e-commerce, social media as well as applications for smartphones and tablets. Integrating all channels offers consumers a flexible and seamless shopping experience, since the channels are holistically linked in all purchasing phases.
Trademark-protected brand-name products developed by a retail company with an attractive best price/performance ratio.
As part of performance-related participation agreements, a performance share entitles its owner to a cash payment matching the share price.
Period of 12 months relating to the financial year preceding the reporting year, usually cited as reference for statements in an annual report.
In the financial sector, rating represents the systematic, qualitative measurement of creditworthiness. Ratings are expressed in various grades of creditworthiness. Renowned agencies that issue ratings are Standard & Poor’s, Moody’s and Fitch.
Return on Capital Employed (RoCE)
A key figure that indicates the rate at which the employed capital (less liquid funds and short-term borrowing) is bearing interest at METRO.
Sedex audit according to SMETA
Sedex, a data platform for transparency in the sustainability commitment of companies, provides SMETA (Sedex Members Ethical Trade Audit), one of the world’s most frequently used concepts for social audits. The audit is focused on working conditions, occupational safety, environmental management and business ethics as well as respect for human rights and temporary employment.
Abbreviation for small and medium-sized enterprise services. SME services stands for METRO’s strategic approach of offering customers customised solutions for the challenges of their business. In addition to food and non-food items, it includes professional services and digital solutions. By intertwining services and product ranges, METRO will be able to offer its customers a more comprehensive assortment and respond to their needs in a more targeted manner.
The adherence to laws, guidelines, standards, codes and/or social conventions by which an organisation ensures socially responsible operations within its value and supply chains. The aim is to ensure the safety and health of employees and to protect their basic rights in their own company as well as among its suppliers.
Newly founded company characterised by an outstanding business idea and a high degree of innovation.
Sustainable Development Goals (SDGs)
Goals for sustainable development: under the title ‘Transforming our World: the 2030 Agenda for Sustainable Development’, the United Nations formulated political goals that are aimed at the entire international community, companies and private individuals. The agenda includes 17 main objectives that take into account all 3 dimensions of sustainability: economic, social and environmental. METRO is aware of its responsibility and contributes to the achievement of the goals.
Task Force on Climate-related Financial Disclosures (TCFD)
Task force deployed by the Financial Stability Board (FSB) in 2015 with the objective of consistently disclosing climate-related financial risks in order to provide different stakeholders with consistent information. The task force’s recommendations are intended to help companies customise their climate-related risk reporting to the needs of investors. Information is published on a voluntary basis.
Total shareholder return (TSR)
A key figure that is used to assess the performance of equity investments. It accounts for investment income and dividends.
The term ‘Traders’ at METRO refers to the customer group of independent resellers such as operators of small grocery stores and kiosks, street food vendors, gas stations and wholesalers.
Non-recurring expenses related to the focus on the wholesale business and the restructuring measures resulting from this realignment are presented separately in the financial reporting as transformation costs.
Weighted average cost of capital (WACC)
Cost of capital in the form of the weighted average (total) cost of capital. The WACC results from the weighted average of the cost rate for equity and borrowing, in each case based on a capital market-based derivation. The weighting is based on the equity and borrowing components of METRO measured at market prices.