Impairment losses as of 30 September 2023 amount to €146 million (30/9/2022: €149 million).
For trade receivables, the expected credit loss over the entire term was recorded. The impairment losses are carried out based on previous experience with regard to maturity and default, as well as in consideration of region- and customer-specific portfolios.
The loss default rates per maturity band of these portfolios are estimated on the basis of previous experience with credit losses from such financial assets. The loss default rates determined in this way are adjusted by including a projected index based on macroeconomic developments.
Individual receivables for which there are objective indications of an impairment of creditworthiness are impaired individually.
The following table shows the gross carrying amounts recognised as of the closing date and the expected credit losses of trade receivables:
€ million |
Total gross receivable as of 30/9/2022 |
Range of determined default rates |
Thereof subject to risk provision |
Impairment losses recognised |
Total gross receivable as of 30/9/2023 |
Range of determined default rates |
Thereof subject to risk provision |
Impairment losses recognised |
|---|---|---|---|---|---|---|---|---|
Not past due |
505 |
0.03%− |
430 |
−18 |
534 |
0.07%− |
440 |
−15 |
Up to 90 days past due |
103 |
0.09%− |
80 |
−1 |
120 |
0.45%− |
92 |
−1 |
91 to 180 days past due |
14 |
0.26%− |
6 |
0 |
28 |
1.45%− |
9 |
−1 |
181 to 270 days past due |
6 |
0.54%− |
3 |
0 |
10 |
2.61%− |
5 |
0 |
271 to 360 days past due |
4 |
1.08%− |
2 |
0 |
11 |
2.17%− |
3 |
0 |
More than 360 days past due |
38 |
5.40%− |
2 |
−1 |
32 |
4.80%− |
3 |
−1 |
Gross receivable |
669 |
|
524 |
– |
735 |
|
551 |
– |
Impairment |
−87 |
|
– |
−20 |
−83 |
|
– |
−19 |
Maximum credit risk |
582 |
|
– |
– |
651 |
|
– |
– |
Besides the impairment recognised based on the presented regional provision matrix, the risk provision of €19 million (30/9/2022: €20 million) also includes an additional country and customer group-specific risk provision against the backdrop of the war in Ukraine, the energy crisis and inflation.
Impairment on trade receivables is reconciled according to the simplified calculation as follows:
€ million |
2021/22 |
2022/23 |
|---|---|---|
As of 1/10 |
90 |
87 |
Addition to impairment |
26 |
36 |
Reversal/utilisation of the impairment |
−30 |
−34 |
Other changes |
1 |
−5 |
As of 30/9 |
87 |
83 |
The impairments include individual impairment losses in the amount of €65 million (30/9/2022: €67 million).
Trade receivables in the amount of €22 million (30/9/2022: €19 million) were not impaired, as collateral is available.
METRO applies the general impairment requirements to receivables from suppliers, receivables from credit card transactions, loans, receivables from leases and other real-estate-related receivables. For this purpose, the receivables are divided into the risk classes of good, medium and bad as well as individual impairment losses based on their (past-due) maturities and the counterparty rating. The creditworthiness of the counterparties is continuously monitored so that METRO recognises a significant increase in the credit risk and can react promptly to any changes. No external ratings are available for the majority of METRO counterparties that are among the above-mentioned business relationships, which is why the risk classes have been changed to good, medium and bad. Receivables that are not yet due or that are only slightly past due by a maximum of 30 days are primarily classified in the good risk class, and receivables that are past due by more than 90 days are classified in the bad risk class. Receivables that are past due by between 30 and 90 days are primarily placed in the medium risk class. Receivables are downgraded in terms of risk class in the event of significant changes in the counterparty’s creditworthiness. The information from the previous year has been adjusted in accordance with these classifications.
The following table shows the gross carrying amount and the development of risk provisions in relation to financial assets to which the general impairment requirements are applied:
€ million |
Good |
Medium |
Bad |
Specific impairment2 |
Total2 |
||||
|---|---|---|---|---|---|---|---|---|---|
Gross carrying amount as of 30/9/2022 |
344 |
61 |
42 |
77 |
524 |
||||
Gross carrying amount as of 30/9/2023 |
312 |
22 |
19 |
110 |
463 |
||||
Impairment |
|
|
|
|
|
||||
As of 1/10/2021 |
3 |
1 |
0 |
64 |
68 |
||||
Newly originated/acquired financial assets |
0 |
0 |
0 |
4 |
4 |
||||
Other changes within a stage |
−1 |
0 |
0 |
9 |
8 |
||||
Derecognised financial assets |
0 |
0 |
0 |
−13 |
−14 |
||||
Utilisation |
0 |
0 |
0 |
−6 |
−6 |
||||
Other changes1 |
0 |
0 |
0 |
−6 |
−6 |
||||
As of 30/9/2022 |
2 |
0 |
1 |
52 |
55 |
||||
Newly originated/acquired financial assets |
0 |
0 |
0 |
10 |
11 |
||||
Other changes within a stage |
0 |
0 |
0 |
17 |
18 |
||||
Derecognised financial assets |
−2 |
0 |
0 |
−19 |
−22 |
||||
Utilisation |
0 |
0 |
0 |
−2 |
−2 |
||||
Other changes1 |
0 |
0 |
0 |
−4 |
−4 |
||||
As of 30/9/2023 |
0 |
0 |
1 |
55 |
56 |
||||
|
|||||||||
In addition, there are impairment losses of €7 million (30/9/2022: €7 million) on financial assets that are subject neither to the simplified nor to the general impairment requirements.