#NEW
GETHER
Consolidated financial statements of METRO AG
ANNUAL REPORT 
2019/20
Time for a new
togetherness

METRO IN FIGURES
€ million
2018/191
2019/20
Change in %
Key financial figures for continuing operations
Sales development (like-for-like)
%
2.1
−3.9
–
Sales development in local currency
%
2.2
−4.0
–
Sales (net)
27,082
25,632
−5.4
Adjusted EBITDA
1,392
1,158
−16.8
Transformation costs
0
47
–
Earnings contributions from real estate transactions
339
3
−99.2
EBITDA
1,731
1,113
−35.7
EBIT
957
257
−73.1
EBT (earnings before taxes)
728
−32
–
Profit or loss for the period2
421
−146
–
Earnings per share (basic = diluted)
€
1.16
−0.40
–
Dividend per ordinary share
0.70
0.703
–
Dividend per preference share
0.70
0.703
–
Cash flow from operating activities
1,209
646
−46.6
Investments
826
627
−24.1
Net debt
5,419
3,771
−30.4
Employees (annual average by headcount)
101,654
97,639
−3.9
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
2 Attributable to METRO shareholders.
3 Subject to the resolution of the Annual General Meeting.

TO OUR SHAREHOLDERS
4
Letter to the shareholders
5
The Management Board
10
Report of the Supervisory Board
12
METRO share
22
GOALS AND STRATEGY
27
COMBINED MANAGEMENT
REPORT
35
1 Overview of financial year 2019/20
and outlook
36
2 Principles of the group
39
3 Economic report
63
4 Report on events after the closing date and
outlook
84
5 Opportunities and risk report
89
6 Remuneration report
104
7 Takeover-related disclosures
123
8 Supplementary notes for METRO AG
(pursuant to the German Commercial Code)
132
CONSOLIDATED FINANCIAL
STATEMENTS AND NOTES
138
Income statement
140
Reconciliation from profit or loss for the
period to total comprehensive income
141
Balance sheet
142
Statement of changes in equity
144
Cash flow statement
146
Notes
149
RESPONSIBILITY STATEMENT
OF THE LEGAL
REPRESENTATIVES
293
INDEPENDENT AUDITOR’S
REPORT
294
SERVICE
305
Newgether is our word for a new
togetherness and collaboration, a new
consideration for one another, but also new
strength and energy. A kind of cooperation
that we at METRO have long experienced
and that is expressed in everything we do –
and that is now receiving renewed
attention. This year’s annual report
therefore bears the title #NEWGETHER.

LETTER TO THE
SHAREHOLDERS
5
THE MANAGEMENT BOARD
10
REPORT OF THE
SUPERVISORY BOARD
12
METRO SHARE
22

LETTER TO
THE SHAREHOLDERS
The past year has been a very important and challenging year for METRO AG. It was the last
year of our transformation from a diversified conglomerate to a focused wholesale company.
With the disposal of Real, this process has been successfully completed despite all challenges.
Today, your company is one of the leading international wholesalers with a clearly focused
business model, a robust balance sheet, strong customer centricity and great innovative power.
However, the past year has also been heavily impacted by the Covid-19 pandemic. Our first
encounter with it was in China, where we reacted quickly to protect our employees, customers
and partners – with great success. This allowed us to effectively stabilise the business and to
complete the disposal of METRO China’s majority stake to Wumei. The knowledge and
experience gained during the coronavirus crisis in that region helped us enormously in
responding quickly to the outbreak of the pandemic in Europe. We set 3 priorities: protect,
preserve, grow. What does that mean in concrete terms?
Protect: our employees, customers and
partners are our top priority, which is why
we rapidly implemented high safety and
hygiene standards in our stores,
warehouses and administrative offices.
Preserve: we have initiated measures for
the entire METRO portfolio based on local
demand in order to ensure the quality and
availability of goods, but also to secure
our financial situation.
Grow: every crisis also brings hidden
opportunities. That is why we started
looking for new growth opportunities
immediately after the outbreak of the
pandemic. It includes digital solutions and
services as well as collaboration with food
suppliers.
CEO video in the online report:
https://reports.metroag.de
M E T R O  I N  F I G U R E S
L E T T E R  T O  T H E  S H A R E H O L D E R S
5
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Financial year 2019/20 was marked by many unexpected challenges due to the pandemic. We
managed to master them consistently. At the same time, we also made progress in many other
areas:
In financial year 2019/20, we achieved a great deal despite the tense situation:
With the completion of the sale of the hypermarket business (Real) and the majority stake in
METRO China, we took the last important step in the transformation of a conglomerate into a
fully focused wholesale company.
Through goal-oriented management and the transactions, we were able to reduce
METRO AG’s debt by almost €2 billion.
At the beginning of the financial year, sales showed encouragingly dynamic growth and were
at the upper end of our outlook. Even though Q3 was subsequently affected by the
lockdowns (−17.5%), in Q4 we already managed to return almost to previous year’s level
(−0.5%). Consequently, we were able to gain significant market share, as the available
industry figures show.
For the financial year, we reached results towards the upper end of the outlook range: With a
like-for-like sales development of −3.9% (outlook −3.5% to −5%) and a decline in EBITDA
adjusted at constant currency of €−205 million (−15.1%) (outlook €−200 million to
€−250 million), we reached the adjusted outlook for financial year 2019/20, as given on
3 August 2020, and we are comfortably within the guidance.
Among other things, this is due to our very promising business performance in Russia, the
flexibility of our distribution channels with store-based and delivery business, our support to
the successful relaunch of self-employed restaurateurs and the numerous measures taken to
strengthen independent traders.
Our Wholesale 360 strategy, with which we support our customers even more
comprehensively through consulting, services and digital solutions, is proving to be very
powerful, especially during this crisis. In numerous countries we were able to gain new
customers with our extended range of services. We also managed to convince politicians,
associations and authorities of our unique role as a partner for small businesses.
Reported Earnings per share came in at €1.27. On this basis, we will propose a dividend of
€0.70 per share to the Annual General Meeting of METRO AG. This dividend proposal
corresponds to 55% of the reported earnings per share and is thus in line with our dividend
policy.
METRO AG – a focused wholesale company with prospects
A new chapter in METRO AG’s evolution is now beginning. I am firmly convinced that we have
created very good conditions for gaining additional market shares with our high-performance
teams, expanding our business model with digital solutions and extended services and thus
actively shaping further consolidation of the industry sector. The conditions for it have been
continuously established in recent years. The key factors here are:
The consistent focus on the needs of the customers: we have seized the opportunity to
further increase the METRO customer benefit and to strengthen the partnership with our
customers. Our HoReCa customers appreciate the flexibility of our store-based business. They
also use our digital tools, for example, for new ordering and pick-up services. In addition, we
have implemented extensive programmes for restaurants and bars in public areas in
collaboration with various partners, for example, to help them relaunch. In the self-employed and
freelance segment, we won back customers and gained many new ones. The key factors here
were the consistently high quality and availability of our products. Business with self-employed
M E T R O  I N  F I G U R E S
L E T T E R  T O  T H E  S H A R E H O L D E R S
6
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

retailers has grown during the crisis because they have become even more relevant to their
customers in terms of local supply during Covid-19.
Customer satisfaction – the key to success: in order to consistently align ourselves to the
needs of our customers, we continually ask them for their opinion. With the Net Promoter Score
(NPS), we frequently collect feedback and measure customer satisfaction in order to identify
improvement potential and prioritise operational projects. The Net Promoter Score was
introduced in 24 countries. So far, METRO has received feedback from approximately 3.7 million
customers. Besides the quantitative measurement of the satisfaction values, suggestions from
customers are also systematically recorded and evaluated.
Our employees and a strong corporate culture: we assess the satisfaction level of our
employees several times a year through employee surveys. The survey was particularly important
this year. More than 80,000 employees were invited to take part in it. Globally, we received an
outstanding feedback rate of 77%. METRO’s global commitment score is 72%, which means that
for 10 years now, METRO has been above the global benchmark in retail of 68%. For us, this is a
clear sign of a strong corporate culture.
Digitalisation and e-commerce provide support to the operational business: as an
omnichannel provider, we are distinguished by a wide network of modern wholesale stores and a
delivery business (Food Service Distribution, FSD) with focus on food items including digital
services. With METRO MARKETS, we also offer a state-of-the-art marketplace that focuses
mainly on non-food items for the hospitality industry. Our customers can choose whether to
shop in a store, pick up their pre-ordered goods at the store or have their products delivered.
METRO’s business model proved to be crisis-resistant during Covid-19: the combination of
stores, delivery and services proves to be extremely adaptable and efficient.
Wholesale 360 – strengthening the competitiveness of our customers: we are forging ahead
with our strategy to become a full-service solution provider for small and medium-sized
companies. Under the Wholesale 360 approach, METRO offers a broad portfolio of products,
consulting, digital tools, services and equipment as well as an online marketplace. It enables us
to position ourselves as the partner of choice for our customers and differentiate ourselves from
other wholesalers. For example, we advise our HoReCa customers via a hotline so that they can
take advantage of government assistance programmes. Moreover, we work with partners to
arrange options for needs-based financing offers.
Acquisitions promote sustainable growth: for us, collaborations and acquisitions are an
opportunity to generate sustainable and profitable growth. In most of our target markets, we
have highly fragmented competition. Our strong balance sheet allows us to consider
consolidating the market through acquisitions of smaller players. For example, in October 2020,
we acquired the Aviludo Group, the second-largest Portuguese food supplier based in Quarteira,
Algarve. The company will remain largely independent and continue to manage its brand.
Trend towards more sustainability in times of Covid-19: if the crisis had one positive effect, it
is that awareness of sustainable development has increased – across all areas: ecological,
economic and social. METRO would like to make a contribution in that regard by setting
ambitious targets to align our lifestyles and behaviour more strongly towards sustainability. At
this point I would like to give 2 examples of how we support our customers in this respect:
For one thing, METRO facilitates climate-friendly outdoor hospitality services. With
immediate effect, METRO Germany is offsetting the carbon emissions of all radiant heaters sold
by the wholesaler. To this end, the company is acquiring corresponding climate certificates and
supporting environmental projects in Germany as well as in 2 other METRO countries. This way,
we are doing more than just enabling our customers from the hospitality industry to offer an
extended outdoor season and thus realise urgently needed sales; we also make an active
contribution to infection and climate protection as well as to the preservation of city centres.
M E T R O  I N  F I G U R E S
L E T T E R  T O  T H E  S H A R E H O L D E R S
7
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Furthermore, we developed the guideline ‘My sustainable restaurant’: here, we show how and
where sustainable concepts can be practically implemented in the hospitality industry. As a
partner, we offer restaurateurs specific solutions that can be individually adapted depending on
the degree of maturity of the company, including environmentally friendly and social products
and services – from recruiting staff, avoiding food waste and reducing waste to implementing
energy-saving measures and offering regional products.
These activities are also reflected in the ratings of various indices. In financial year 2019/20,
we were once again listed in the Food & Staples Retailing group in the internationally important
Dow Jones Sustainability Index World and Europe. METRO also remains a member of the
FTSE4Good index series. FTSE4Good is a British index family that has been in existence since
2001 and analyses large and medium-sized companies involved in sustainability and corporate
social responsibility. METRO has been listed in the FTSE4Good index since 2017.
Outlook
For financial year 2020/21, METRO’s financial performance will be impacted by the development
of the Covid-19 pandemic. First, there is an impact of Covid-19-related governmental restrictions
to public life, which is difficult to estimate. Duration and intensity of those restrictions determine
that impact but are yet unknown. Second, there is an upside potential, which would result from
an earlier than expected widely available vaccination. We therefore plan with different scenarios
and update them regularly.
Based on stable exchange rates and no adjustments to the portfolio METRO currently expect
sales (both total sales and like-for-like) to be slightly below previous year. EBITDA adjusted is
expected to decline by a mid-double-digit million euro amount. This outlook thereby assumes
governmental restrictions to public life to last partially until mid Q2 of financial year 2020/21 and
a fast and substantial recovery of the hospitality and tourism industry thereafter. Experiences
gained from managing the first wave of Covid-19 will, along with cost efficiency and proven
measures to protect the business, allow METRO to mitigate the impact on METRO’s operations
compared to spring 2020. In line with observations in November 2020, the Management Board
expects one month of full lockdown in the entire country portfolio will result in average sales
losses of around €400 million equalling sales losses of approximately 1.5 percentage points of
sales growth compared to previous year.
Almost 9 years ago, I took over as Chairman of the Management Board of METRO AG. At that
time our company was a diversified conglomerate without focus and with very high levels of
debt. The transformation of our company into a fully focused wholesaler is now complete. With
the start of this new chapter for METRO AG, I have decided not to renew my contract and to
leave the company at the end of 2020 – with absolute confidence that we will tackle the
Covid-19 pandemic very well. Now that we have repositioned METRO as a focused wholesaler, I
think that we have reached a good point in time to hand over the company management to
someone new.
METRO has always been more than just a job to me. I am grateful for a total of 11 exciting
years on the Management Board of this company. I have truly enjoyed the interaction with great
colleagues, passionate customers and so many important partners. My decision to leave was
certainly not easy for me. The great goal to provide even more support for these wonderful
entrepreneurs in the hospitality and retail sectors has always inspired and motivated me and I
feel a strong connection to this company beyond the normal measure. That is why I want to and
will remain a friend and supporter of METRO in the future. I would like to thank all our
employees for their dedication during this time and especially in the past financial year. Without
M E T R O  I N  F I G U R E S
L E T T E R  T O  T H E  S H A R E H O L D E R S
8
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

their commitment, passion and willingness to work for the success of our customers, we would
not be where we are today. This success is the result of the hard work of each and every one of
our employees – for which I would like to express a very special thank you.
Dear shareholders, I would also like to extend my gratitude to you. I sincerely thank you for
your continued trust and the firm conviction with which you stand by METRO AG. The
challenging transformation of your company will pay off. Even the current pandemic will not
change this outcome. Because METRO AG is a strong international company with a leading role
in wholesale, exceptionally strong teams, agile distribution channels, innovative solutions and a
robust balance sheet.
Yours truly,
Olaf Koch
Chairman of the Management Board of METRO AG
M E T R O  I N  F I G U R E S
L E T T E R  T O  T H E  S H A R E H O L D E R S
9
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

THE MANAGEMENT
BOARD
OLAF
KOCH
Chairman of the
Management Board
Areas of responsibility
Corporate Communications, Corporate
Public Policy, M&A | Legal & Compliance,
Corporate Office, Strategy | Investor
Relations, Corporate Responsibility, Global
Branding & Activation, Master Data,
Hospitality Digital, METRO MARKETS,
METRO-NOM, NX-Food.
Profile
Olaf Koch was appointed Chief Executive
Officer of METRO AG on 2 March 2017 for a
term ending on 1 March 2022. Olaf Koch will
leave the company early at the end of 2020
at his own request. From 14 September 2009
until the end of 2011 he was a member of the
Management Board (Chief Financial Officer)
of the former METRO AG (now:
CECONOMY AG), and from 1 January 2012 to
12 July 2017 he was the Chief Executive
Officer of the company. He was previously
employed at the financial investor Permira.
Following his graduation in business
administration, Mr Koch started his career at
Daimler-Benz AG in 1994. He was a board
member of Mercedes Car Group from 2002
to 2007.
CHRISTIAN
BAIER
Chief Financial Officer
Areas of responsibility
Corporate Accounting & Controlling,
Corporate Risk Management, Corporate Tax,
Corporate Treasury, Global Business Services,
Group Internal Audit, METRO PROPERTIES,
METRO LOGISTICS, MIAG, METRO Insurance
Broker.
Profile
Christian Baier was appointed member of the
Management Board of METRO AG on 11
November 2016. His current appointment as
a member of the Management Board runs
until 30 September 2025. He was the Chief
Financial Officer (CFO) of METRO Cash &
Carry from 1 July 2015 to 1 March 2017 and
previously held the position of Group
Director Strategy, Business Innovation and
M&A at the former METRO AG (now:
CECONOMY AG). Mr Baier joined METRO
Cash & Carry Germany (now METRO
Germany) as a member of the Management
Board/Head of Finance and Administration –
C+C Schaper – in 2011. He holds a BA in
business administration and an MBA from
New York University and was previously
employed at the finance investor Permira and
a number of banks.
M E T R O  I N  F I G U R E S
T H E  M A N A G E M E N T  B O A R D
10
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

ANDREA
EUENHEIM
Chief Human Resources
Officer and Labour
Director
Since 1 November 2019
Areas of responsibility
International HR Business Partner, Global HR
Operations & Services (incl. Campus HR),
Global Talent Management (incl. House of
Learning), Global Employer Branding, Talent
Acquisition & Onboarding, Global
Compensation & Benefits, Global Diversity &
Inclusion, Global Labour Relations, METRO
Campus Services.
Profile
Andrea Euenheim was appointed member of
the Management Board and Labour Director
of METRO AG on 1 November 2019 for a term
ending on 31 October 2022. Prior to that, she
worked at Amazon in Seattle, USA, from
October 2015, initially as HR Director of
Global Consumer Products and since the end
of 2017 as HR Director of Global Expansion,
Mergers and Acquisitions (M&A). Before
moving to the USA, Andrea Euenheim was
responsible for personnel management at
Amazon Europe from 2007, primarily
overseeing Germany, Italy, Spain and France.
From 2001 to 2007, she worked for General
Electric, where her last position was Head of
Human Resources for Germany, Austria and
Switzerland at GE Commercial Finance, Fleet
Services. Andrea Euenheim completed her
master’s degree in linguistics, sociology,
psychology and business administration at
the University of Passau.
RAFAEL
GASSET
Chief Operating Officer
(Convenience Cluster)
Since 1 April 2020
Areas of responsibility
Retail Franchise, Trader Digital, Global
Procurement, METRO SOURCING
International.
METRO national subsidiary responsibilities:
Bulgaria, China, India, Kazakhstan, Moldova,
Myanmar, Pakistan, Poland, Romania, Russia,
Ukraine and Hungary.
Profile
Rafael Gasset was appointed member of the
Management Board of METRO AG on
1 April 2020 for a term ending on 31 March
2023. From 22 June 2015 to 31 March 2020,
he was Operating Partner with various
national subsidiary responsibilities, most
recently for Russia, Romania, Moldova and
Poland. Rafael Gasset previously held various
positions at METRO national subsidiaries.
Before becoming an Operating Partner, he
was Regional Operating Officer at
METRO Cash & Carry overseeing the Eastern
Europe region.
ERIC
POIRIER
Chief Operating Officer
(Hospitality Cluster)
Since 1 April 2020
Areas of responsibility
Digitalisation, Store Excellence & Pricing,
Customer Experience, Food Service
Distribution, Sales Force, Common Value
Creation, SME Services, METRO
GastroFinanz, METRO ADVERTISING.
METRO national subsidiary and
organisational responsibilities: Belgium,
Germany (incl. Rungis Express), France (incl.
Pro à Pro), Italy, Japan, Croatia, Netherlands,
Austria, Portugal, Serbia, Slovakia, Spain,
Czech Republic, Turkey, Classic Fine Foods.
Profile
Eric Poirier was appointed member of the
Management Board of METRO AG on 1 April
2020 for a term ending on 31 March 2023.
From 1 July 2018 to 31 March 2020, he held
the position of Operating Partner with
responsibility for subsidiaries in France
including Pro à Pro, Italy, Spain and Portugal.
Eric Poirier previously held the position of
Chief Executive Officer at MAKRO Poland
and various positions at METRO national
subsidiaries.
M E T R O  I N  F I G U R E S
T H E  M A N A G E M E N T  B O A R D
11
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

REPORT OF THE
SUPERVISORY BOARD
In financial year 2019/20, the transformation from conglomerate to pure wholesaler was
completed with the sale of METRO China and Real. Thereby a full focus on the wholesale
business was achieved and METRO could further concentrate on the growth of the business.
After METRO had made a good start to the financial year, especially in the HoReCa and
Traders focus areas, business was, however, severely impacted by the Covid-19 pandemic from
March onwards. Months of business closures among our HoReCa customers along with further
government restrictions led to a decline in sales and earnings. Nevertheless, METRO was able to
deliver a respectable result overall in financial year 2019/20. The stable financial performance
and the earnings from the sales of METRO China and Real had a positive impact on METRO’s
balance sheet and liquidity.
METRO strongly supported making the impact of the Covid-19 pandemic on its HoReCa
customers visible in the press and in political debate, and has also advised and supported its
customers with additional delivery activities, digital applications and services. The results show
that METRO is on the right track with these activities. Consequently, we will continue to
implement them with vigour.
Jürgen Steinemann
Chairman of the Supervisory Board
Profile
Jürgen Steinemann was born in 1958 in Damme,
Germany. He graduated with a degree in business
administration from the European Business School
in Wiesbaden, London and Paris in 1985 and
initially held different management positions at
Eridania Béghin-Say, Unilever and Nutreco. Jürgen
Steinemann was CEO of Barry Callebaut AG from
2009 to 2015. He is currently the CEO of JBS
Holding GmbH. From 2015 to the demerger of the
former METRO group in July 2017, Jürgen
Steinemann was a member of the Supervisory
Board of the former METRO AG (now:
CECONOMY AG) and Chairman of the Supervisory
Board since February 2016. Jürgen Steinemann has
been a member and Chairman of the Supervisory
Board of the current METRO AG since 2017.
More information about the other members of the
Supervisory Board can be found on the website
www.metroag.de/en in the section Company –
Supervisory Board.
M E T R O  I N  F I G U R E S
R E P O R T  O F  T H E  S U P E R V I S O R Y  B O A R D
12
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

On behalf of the Supervisory Board, I would like to send a signal to all METRO customers that
we stand by their side and support them with the greatest possible commitment to help them
through these difficult times. This year, we would like to express our extraordinary thanks to all
METRO employees. Not only did they have to work under difficult conditions, but they also
showed incredible commitment outside of familiar procedures. Our thanks also goes to the
members of the Management Board, who are doing everything they can to get METRO through
this major crisis, but also to take advantage of new opportunities that arise.
Advice and supervision in consultation with the Management Board
In financial year 2019/20, the Supervisory Board performed the duties imposed on it by law, the
Articles of Association and the Code of Procedure. We advised the Management Board in
relation to the management of METRO AG and the group and supervised its activities. The
Management Board furnished us with detailed written and verbal information on all significant
matters within METRO at the Supervisory Board meetings and on other occasions in a timely
manner and in accordance with the statutory requirements. Its reporting in particular included
information on current business developments, particularly against the background of the
Covid-19 pandemic, on the intended business policies and other fundamental concerns relating
to corporate planning as well as information about the situation of the company and the group
(including the risk position, risk management and compliance). The Management Board provided
explanations for any deviations from planned business performance. We have given our approval
for individual business transactions, if it was required by law, the Articles of Association or
regulations we had made ourselves. Since no matters requiring clarification arose, we did not
make use of the Supervisory Board’s rights of inspection and audit pursuant to § 111 Section 2
Sentence 1 and 2 of the German Stock Corporation Act (AktG). Managers from the relevant
departments of METRO attended meetings to address particular agenda items.
Prof. Dr Edgar Ernst as the Chairman of the Audit Committee and I as the Chairman of the
Supervisory Board closely and regularly exchanged information and ideas with regard to key
issues and pending decisions with the Chief Financial Officer and/or the Chief Executive Officer
also outside of meetings. I was also in contact with the members of the Supervisory Board
outside of meetings. In our capacity as committee chairmen, Prof. Dr Edgar Ernst and I also
reported on the work and recommendations of the respective committees at the subsequent
Supervisory Board meeting.
The Supervisory Board held a total of 11 meetings in financial year 2019/20, with 4 meetings
convened as extraordinary meetings.
The average attendance rate at meetings of the Supervisory Board and its committees in
financial year 2019/20 was 97%. An individualised overview of the participation of each member
of the Supervisory Board in office in financial year 2019/20 in the meetings of the Supervisory
Board and its committees is contained in the section ‘Individual attendance at meetings’ of this
report. Moreover, 2 resolutions were passed in a written procedure outside a Supervisory Board
meeting. In so-called closed sessions, the members of the Supervisory Board regularly
exchanged views without the participation of the members of the Management Board. As was
customary in the past, both the shareholder and employee representatives on the Supervisory
Board of METRO AG discussed relevant agenda items in separate pre-meetings. In separate
telephone calls, the Chairman of the Management Board and the Chief Financial Officer also
reported to the Supervisory Board on the Covid-19 pandemic and its impact on METRO
operations.
M E T R O  I N  F I G U R E S
R E P O R T  O F  T H E  S U P E R V I S O R Y  B O A R D
13
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The members of the Supervisory Board are required to disclose any conflicts of interest
without delay. Due to the then existing business relationship of Franz Haniel & Cie. GmbH with
EP Global Commerce GmbH (EPGC), the former member of the Supervisory Board Dr Florian
Funck, who was also a member of the Management Board of the then major METRO shareholder
Franz Haniel & Cie. GmbH, did not participate in the flow of information or in the deliberations of
the Supervisory Board of METRO AG in financial year 2019/20, which were still ongoing
following the voluntary takeover bid by EP Global Commerce VI GmbH on 10 July 2019 and in
connection with the increase in EPGC’s shareholding. Furthermore, in financial year 2019/20,
member of the Supervisory Board Marco Arcelli did not participate in any deliberations or
resolutions of the Supervisory Board of METRO AG in connection with the voluntary takeover
bid of EP Global Commerce GmbH announced on 13 September 2020 and published on
1 October 2020, or in the associated flow of information. The background here is that Marco
Arcelli is simultaneously holding the position as CEO of EP Global Commerce a.s., the parent
company of EP Global Commerce GmbH, and thus a person acting jointly with the latter as
defined in § 2 Section 5 of the German Securities Acquisition and Takeover Act (WpÜG). No
further conflicts of interest arose in financial year 2019/20.
Personnel
Dr Florian Funck resigned his Supervisory Board mandate with effect from the end of
7 December 2019. As his successor on the Supervisory Board, Marco Arcelli was initially
appointed by the court and then elected by the Annual General Meeting 2020. In addition, Gwyn
Burr, Prof. Dr Edgar Ernst and Dr Liliana Solomon were re-elected as members of the
Supervisory Board of METRO AG by the Annual General Meeting 2020. Within the context of the
sale of the Real hypermarket business, the mandates of the employee representatives for the
Supervisory Board ended on 25 June 2020 for Werner Klockhaus (as Vice Chairman of the
Supervisory Board), Susanne Meister and Dr Angela Pilkmann. Rosalinde Lax, Manuela Wetzko
and Udo Höfer were appointed by the court as their successors with effect from 17 July 2020.
Xaver Schiller was then elected as the new Vice Chairman of the Supervisory Board.
On 1 November 2019, Andrea Euenheim succeeded Heiko Hutmacher, who left the
Management Board on 31 December 2019, as a member of the Management Board and Labour
Director. In addition, Management Board member Philippe Palazzi left METRO at his own request
at the end of May 2020; his appointment as Management Board member ended with effect from
31 March 2020. He was succeeded in the position of Chief Operating Officer by Rafael Gasset
and Eric Poirier on 1 April 2020. Christian Baier was reappointed as member of the Management
Board from 1 October 2020 to 30 September 2025. In addition, Chief Executive Officer Olaf
Koch has announced that he will not be seeking a contract extension and will leave the company
at the end of 2020. The Supervisory Board has agreed to terminate Olaf Koch’s contract, which
runs until 1 March 2022, by mutual consent with effect from 31 December 2020.
Key issues covered by Supervisory Board meetings
October 2019 – In an extraordinary meeting, we approved the sale of the majority stake in
METRO China to Wumei Technology Group and the conclusion of a partnership agreement. This
transaction marked an important milestone on METRO’s path to becoming a pure wholesaler.
November 2019 – In this meeting, we reviewed the changes in the company’s shareholding
structure after EPGC increased its stake in METRO, becoming the largest single shareholder of
M E T R O  I N  F I G U R E S
R E P O R T  O F  T H E  S U P E R V I S O R Y  B O A R D
14
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

METRO with 29.99% of the ordinary shares. The Management Board then reported to us on
current business developments and the status of the Real disposal process. We also resolved on
the individual performance factors of the members of the Management Board for determining
the amount of the short-term incentive for financial year 2018/19 and dealt with Management
Board remuneration for 2019/20, in particular the discussion of the individual targets for the
individual members of the Management Board. We discussed the annual report on governance
functions in the group. We also decided to reappoint Christian Baier as a member of the
Management Board for a period of 5 years and to conclude a corresponding employment
contract. A resolution was also passed on the Declaration on corporate management | Corporate
governance report 2018/19 and we received information about the sustainability initiatives of
METRO.
December 2019 – Our Supervisory Board meeting focused on the annual and consolidated
financial statements and the combined management reports for METRO AG and for the group
for financial year 2018/19, including the non-financial statement as well as the proposal for the
appropriation of the balance sheet profit to the Annual General Meeting 2020. The auditor
attended this discussion and reported on the key findings of his audits. In addition to the report
by the Management Board about the current business development, other important subjects
discussed at the Supervisory Board meeting included the following: the resolution on the report
of the Supervisory Board for financial year 2018/19 and the preparation of the Annual General
Meeting 2020. We also obtained an update on the Real sales process and approved the schedule
of responsibilities of the Management Board valid from 1 January 2020, which needed to be
adjusted due to the departure of Mr Hutmacher at the end of 2019.
February 2020 – In an extraordinary meeting, we approved the sale of the Real hypermarket
business and related business activities to a consortium consisting of The SCP Group S.à r.l. and
x+bricks AG. This sale once again emphasised METRO’s focus on wholesale and was thus
another important milestone for the future of METRO.
At the meeting of the Supervisory Board held immediately before the start of the Annual
General Meeting 2020, the Management Board provided information on the current business
development and also presented the planned efficiency programme for the METRO Campus in
Düsseldorf. Furthermore, as a precautionary measure, we adopted a resolution granting power
of attorney to a law firm, in particular in relation to potential actions for rescission and/or
annulment against resolutions adopted by the Annual General Meeting 2020. Subject to the
appointment of the auditor by the Annual General Meeting 2020, we approved the audit
assignments for the 2019/20 annual and consolidated financial statements and the review of the
condensed financial statements and interim management report for the first half of financial year
2019/20. Further resolutions were passed on premature lease contract extensions for 10 METRO
Germany locations, another adjustment of the business distribution plan and the internal
directive on transactions with related parties necessitated by changes in the law.
With the end of their terms in office as members of the Supervisory Board, the memberships
of Gwyn Burr, Dr Liliana Solomon and Prof. Dr Edgar Ernst in the respective committees of the
Supervisory Board also ended. Following the re-election of the aforementioned individuals at
the Annual General Meeting on the same day, elections to the committees became necessary
following the Annual General Meeting 2020. The Supervisory Board passed the corresponding
resolution by written procedure.
March 2020 – At an extraordinary meeting, we first received current information on the
business development against the background of the Covid-19 pandemic. We also dealt with
personnel matters relating to the Management Board. Following Philippe Palazzi’s request to
revoke his appointment as member of the Management Board of METRO AG prematurely, we
decided to appoint Rafael Gasset and Eric Poirier as members of the Management Board of
M E T R O  I N  F I G U R E S
R E P O R T  O F  T H E  S U P E R V I S O R Y  B O A R D
15
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

METRO AG (Chief Operating Officers) for the period from 1 April 2020 to 31 March 2023 and to
conclude their respective employment contracts.
May 2020 – Reporting on the current business development continued to be dominated by
the effects of the Covid-19 pandemic. Furthermore, the Management Board informed us that the
sale of the majority stake in METRO China was completed. The Management Board also reported
on the liquidity planning for the company and explained the background to planned efficiency
programmes that will be necessary to improve quality and to fully streamline METRO as a pure
wholesaler. In preparation for implementing the disposal of Real, we passed a resolution on the
expansion of the mandate already awarded to the auditing company KPMG to audit the annual
and consolidated financial statements for 2019/20 and on the addition of key audit areas.
Moreover, we discussed variable Management Board remuneration and resolved – as planned –
to reconcile the STI targets after applying the new international accounting standard IFRS 16.
Andrea Euenheim also reported on the status of her Management Board position and the
changes since she joined the Management Board of METRO AG in November 2019.
July 2020 – Following the resignation of Werner Klockhaus as a member and Vice Chairman
of the Supervisory Board after the completed disposal of Real, we elected Xaver Schiller as the
new Vice Chairman of the Supervisory Board by written procedure and appointed new members
to the committees.
August 2020 – After being updated about current business developments, the Management
Board reported on the flexible work structures at METRO and future changes that have emerged
as a learning process from the Covid-19 pandemic. In preparation for ‘Say on Pay’ for
Supervisory Board remuneration required by law in the future, we dealt with the existing
remuneration system for members of the Supervisory Board of METRO AG and discussed a
potential adjustment proposal to the Annual General Meeting 2021. We were also informed
about changes in top management and received reports in the form of investment reviews on
the METRO LOGISTICS distribution centre in Marl and the MAKRO distribution centre/customer
fulfilment centre in Prague, Czech Republic. In addition, the members of the Supervisory Board
were offered the opportunity to participate in an internal training event on the subject of NX-
Food, a METRO platform that deals with new food solutions, changed customer needs and
future trends. Against the background of the new appointments to the Supervisory Board, a
seminar on the rights and duties of members of the Supervisory Board was also held in August
with the employee representatives on the Supervisory Board.
As a result of Olaf Koch’s decision not to renew his contract, which expires in March 2022,
and to leave the company at the end of 2020, we decided at an extraordinary meeting of the
Supervisory Board to terminate his appointment as member and Chairman of the Management
Board by mutual consent with effect from 31 December 2020. In the course of the discussion, we
agreed to seek support from an external consultant to help us find a successor to the CEO
position and decided to commission a corresponding consultancy.
September 2020 – This meeting was preceded by information about EPGC’s announcement
published on 13 September 2020 that it would make a voluntary takeover bid for METRO AG
shares again. In response, we decided to set up another takeover committee for the duration of
this takeover process and to appoint financial and legal advisors to the Supervisory Board. The
Management Board also informed us about current business developments and explained the
transformation project at METRO-NOM GmbH. We discussed the budget planning for 2020/21 ff.
presented by the Management Board and approved it. We also granted special bonuses to the
members of the Management Board Olaf Koch and Christian Baier due to the completion of the
sale of METRO China. Furthermore, we approved the revised remuneration system for the
members of the Management Board of METRO AG and resolved to amend their service contracts
accordingly. We passed resolutions on Management Board remuneration for financial year 2020/
M E T R O  I N  F I G U R E S
R E P O R T  O F  T H E  S U P E R V I S O R Y  B O A R D
16
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

21 and, against the background of the impact of the Covid-19 pandemic on METRO’s planning,
we adjusted the targets for the 2019/20 LTI tranche for members of the Management Board. We
also adapted the Code of Procedure for the Management Board, Supervisory Board and Audit
Committee as well as the diversity concept for the Management Board and the Supervisory
Board. Resolutions were also passed on the declaration of conformity in accordance with § 161 of
the German Stock Corporation Act (AktG) and on the amendment of the directive on
transactions with related parties. In the end, we discussed the evaluation of the self-assessment
of the Supervisory Board conducted through an internally prepared questionnaire.
At the 1½-day strategy meeting, which was postponed from May to September 2020 due to
the Covid-19 pandemic, we discussed the group strategy. Our discussions were based on topics
such as the impact of the Covid-19 pandemic on the economy, retail and METRO customers, the
strategy concept for HoReCa and Traders customers and its implementation in the respective
METRO countries as well as the expansion of the Wholesale 360 business model.
Work in the committees
For the purpose of effectively performing its duties, the Supervisory Board relies on the work of
4 permanent committees: the Presidential Committee, the Audit Committee, the Nomination
Committee and the Mediation Committee pursuant to § 27 Section 3 of the German Co-
determination Act (MitbestG). The committees prepare the board-level consultations and
resolutions. In addition, also decision-making responsibilities were transferred to the committees
within the legally allowed parameters. The respective chairmen of the committees report to the
Supervisory Board regularly and comprehensively with regard to the work in the committees.
Guests such as managers from the responsible departments of METRO or the auditors were
invited to the committee meetings to discuss specific topics.
The permanent committees of the Supervisory Board are composed as follows
(status: 9 December 2020):
Presidential Committee: Jürgen Steinemann (Chairman), Xaver Schiller (Vice Chairman),
Thomas Dommel, Prof. Dr Edgar Ernst
Audit Committee: Professor Dr Edgar Ernst (Chairman), Xaver Schiller (Vice Chairman), Marco
Arcelli, Stefanie Blaser, Michael Heider and Dr Fredy Raas
Nomination Committee: Jürgen Steinemann (Chairman), Herbert Bolliger, Gwyn Burr
Mediation Committee pursuant to § 27 Section 3 of the German Co-determination Act
(MitbestG): Jürgen Steinemann (Chairman), Xaver Schiller (Vice Chairman), Thomas Dommel,
Prof. Dr Edgar Ernst
In connection with the voluntary takeover bid by EP Global Commerce GmbH, which was
announced on 13 September 2020 and published on 1 October 2020, the Supervisory Board also
formed a Takeover Committee with equal representation. The members of the Takeover
Committee were Jürgen Steinemann (Chairman), Stefanie Blaser, Prof. Dr Edgar Ernst, Michael
Heider, Xaver Schiller and Alexandra Soto.
Presidential Committee – The Presidential Committee is mainly concerned with the personnel
and remuneration issues of the members of the Management Board and monitors compliance
with legal regulations and the application of the German Corporate Governance Code. In
addition, the Presidential Committee is responsible for urgent resolutions and issues that the
Supervisory Board has delegated to it for resolution. The Presidential Committee held 8
meetings in financial year 2019/20, 4 meetings were convened as an extraordinary meeting.
M E T R O  I N  F I G U R E S
R E P O R T  O F  T H E  S U P E R V I S O R Y  B O A R D
17
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The subjects of discussion and resolutions were issues relating to the remuneration and
contractual matters of the members of the Management Board. The Presidential Committee also
dealt with the mutually agreed early retirement of Philippe Palazzi and Olaf Koch. Further issues
addressed by the Presidential Committee included corporate governance at METRO, especially
the preparation of the declaration of conformity in accordance with § 161 of the German Stock
Corporation Act (AktG). As a regular topic of discussion in the committee, long-term succession
planning and the development of talent management were discussed in detail.
Audit Committee – The Audit Committee is responsible for supervising the company’s
accounting, accounting processes, the effectiveness and development of the internal control
system, the risk management system, the internal audit system, compliance and the audit of the
annual financial statements (in particular relating to the selection and independence of the
auditor and any additional services provided by the auditor).
6 committee meetings were held in financial year 2019/20. The Chief Financial Officer and the
Chairman of the Management Board attended all meetings. In addition to internal and external
guests, especially including the auditor, the Chairman of the Supervisory Board, Jürgen
Steinemann, who retired from the Audit Committee in July 2020 as part of the set-up of the
committee, attended the meetings of the Audit Committee as a permanent guest. The Chairman
of the Audit Committee, Prof. Dr Edgar Ernst, was in regular contact with the Chief Financial
Officer and the auditor and, when necessary, with heads of METRO’s specialist departments. The
Audit Committee routinely prepared the meeting of the Supervisory Board in December 2019
and, after thorough auditing, approved the annual and consolidated financial statements for
financial year 2018/19, the combined management report of METRO AG and the group for
financial year 2018/19 as well as the combined non-financial statement contained in the
combined management report. In the presence of the auditor, the committee also discussed the
results of the audit and recommended to the Supervisory Board to approve the annual and
consolidated financial statements for financial year 2018/19 and to approve the Management
Board’s proposal to the Annual General Meeting 2020 on the appropriation of the balance sheet
profit. The members of the Audit Committee discussed the quarterly statement and the half-year
financial report for financial year 2019/20 prior to their respective publication. The Audit
Committee also prepared the audit engagements for financial year 2019/20 and considered the
auditor’s planning of the audit as well as the key audit areas. The committee was informed about
so-called non-audit services provided by the auditors and approved these services as necessary.
The Audit Committee dealt intensively with the governance functions in the group (internal
control systems, risk management system, internal audit and compliance), the draft budget
presented by the Management Board, the group controlling plan and the audit plan prepared by
the Internal Audit unit. The Audit Committee further requested information about significant
projects and legal issues.
In separate telephone calls, in which the Chief Executive Officer and the Chief Financial
Officer took part as scheduled, the Audit Committee also received reports between meetings on
business developments, particularly against the background of the Covid-19 pandemic. The self-
assessment of the Supervisory Board carried out in the reporting period also included an
internal questionnaire prepared specifically for the members of the Audit Committee. The
evaluation was discussed by the fully assembled committee. There was no need for action to
improve the work of the Audit Committee.
Nomination Committee – The Nomination Committee prepares for the election of
shareholder representatives to the Supervisory Board and proposes suitable candidates to the
Supervisory Board for recommendation to the Annual General Meeting. In financial year 2019/20,
a total of 3 committee meetings were held, with 1 meeting convened as an extraordinary
M E T R O  I N  F I G U R E S
R E P O R T  O F  T H E  S U P E R V I S O R Y  B O A R D
18
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

meeting, for the purpose of preparing election proposals to the Annual General Meeting for
2020 and 2021.
Mediation Committee – There was no reason for a meeting of the Mediation Committee,
which was formed in accordance with § 27 Section 3 of the German Co-determination Act
(MitbestG), in the reporting year.
Takeover Committee – The task of the Takeover Committee was to continuously deal with the
takeover process and prepare all necessary or expedient tasks and decisions of the Supervisory
Board. In particular, the Takeover Committee prepared the review of the voluntary takeover bid
and the reasoned statement pursuant to § 27 of the German Securities Acquisition and Takeover
Act (WpÜG). The committee did not take up its activities until financial year 2020/21.
Individual attendance at meetings
Participation of members of the Supervisory Board in office in financial year 2019/20 at
meetings of the Supervisory Board and its committees is disclosed in the following. Only those
meetings that took place during the respective membership of the Supervisory Board or
committee are listed.
M E T R O  I N  F I G U R E S
R E P O R T  O F  T H E  S U P E R V I S O R Y  B O A R D
19
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Supervisory Board
Supervisory
Board
Presidential
Committee
Audit
Committee
Nomination
Committee
Total
(in percent)
Jürgen Steinemann
(Chairman)
11/11
8/8
6/6
(partl. guest
participation)
3/3
100
Xaver Schiller
(Vice Chairman)
11/11
8/8
6/6
–
100
Werner Klockhaus
(Vice Chairman, until 25/6/2020)
7/7
5/5
4/4
–
100
Marco Arcelli
since 22/1/2020
8/8
–
2/2
–
100
Stefanie Blaser
11/11
–
2/2
–
100
Herbert Bolliger
11/11
–
–
1/1
100
Gwyn Burr
10/11
–
–
3/3
93
Thomas Dommel
10/11
2/3
4/4
–
89
Prof. Dr Edgar Ernst
9/11
3/3
6/6
2/2
91
Dr Florian Funck
until 7/12/2019
3/3
–
2/2
–
100
Michael Heider
11/11
–
2/2
–
100
Udo Höfer
since 17/7/2020
4/4
–
–
–
100
Peter Küpfer
11/11
–
–
–
100
Rosalinde Lax
since 17/7/2020
4/4
–
–
–
100
Susanne Meister
until 25/6/2020
7/7
–
–
–
100
Dr Angela Pilkmann
until 25/6/2020
7/7
–
100
Dr Fredy Raas
11/11
–
6/6
–
100
Eva-Lotta Sjöstedt
10/11
–
–
–
91
Dr Liliana Solomon
10/11
5/5
–
–
94
Alexandra Soto
10/11
–
–
–
91
Manuela Wetzko
since 17/7/2020
4/4
–
–
–
100
Angelika Will
11/11
–
–
–
100
Manfred Wirsch
10/11
–
–
–
91
Silke Zimmer
10/11
–
–
–
91
Attendance rate (total)
97
Corporate governance
The Management Board and the Supervisory Board of METRO AG attach high priority to the
standards of good corporate governance. Against this background, the Management Board and
the Supervisory Board base their actions on the recommendations of the German Corporate
Governance Code and, in September 2020, issued their declaration of conformity with regard to
the recommendations of the Government Commission on the German Corporate Governance
Code pursuant to § 161 of the German Stock Corporation Act (AktG) and published the
declaration of conformity on the website www.metroag.de/en in the section Company –
Corporate Governance. Reporting on METRO’s corporate governance can be reviewed in the
declaration on corporate management. This document has also been published on the website
www.metroag.de/en in the section Company - Corporate Governance.
M E T R O  I N  F I G U R E S
R E P O R T  O F  T H E  S U P E R V I S O R Y  B O A R D
20
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Annual and consolidated financial statements
KPMG AG Wirtschaftsprüfungsgesellschaft has reviewed the annual financial statements
prepared by the Management Board in accordance with the German Commercial Code (HGB)
and the consolidated financial statements prepared by METRO AG based on the International
Financial Reporting Standards (IFRS). It also reviewed the combined management report for
METRO AG and the group for financial year 2019/20 and issued an unqualified audit certificate.
The auditor also issued an unqualified certificate about the combined non-financial statement
contained in the management report as a result of his audit to provide limited assurance. The
auditor provided a written report on these audits.
The documents for the financial statements, including the combined non-financial statement,
and the audit reports were discussed and reviewed in great detail during the meeting of the
Audit Committee on 8 December 2020 and in the Supervisory Board meeting on 9 December
2020 in the presence of the auditor. Prior to these meetings, the required documents were
distributed to all members of the Audit Committee as well as the Supervisory Board. In both
meetings, the auditor reported about the key findings of his audits and was at the Supervisory
Board’s disposal to answer questions and provide additional information also in the absence of
the Management Board.
The auditor also provided information on services rendered in addition to auditing services.
No issues resulting in a disqualification due to bias arose.
Based on our own review of the annual financial statements, the consolidated financial
statements and the combined management report as well as the combined non-financial
statement for financial year 2019/20, we had no objections and the Supervisory Board approved
the result of the audit. As recommended by the Audit Committee, we approved the annual
financial statements and the consolidated financial statements submitted by the Management
Board. The Annual Financial Statements of METRO AG are thus adopted. Following a careful
own review and consideration of the interests involved, we approved the Management Board’s
proposal to the Annual General Meeting 2021 for the appropriation of the balance sheet profit.
Düsseldorf, 9 December 2020
The Supervisory Board
Jürgen Steinemann
Chairman
Information about the members of the Supervisory Board can be found on the website www.metroag.de/en in the
section Company – Supervisory Board.
M E T R O  I N  F I G U R E S
R E P O R T  O F  T H E  S U P E R V I S O R Y  B O A R D
21
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

METRO SHARE
Performance of the METRO share
In the first 3 months of financial year 2019/20, the stock market performed positively due to
signs of easing in the trade dispute between China and the USA, and the MDAX closed at 28,313
points at the end of 2019. The MDAX continued to improve until mid-February 2020, reaching its
peak for the year with 29,355 points on 19 February. However, throughout the rest of financial
year 2019/20, the stock market was heavily impacted by the effects of the Covid-19 pandemic.
From 20 February onwards, as the Covid-19 pandemic accelerated, it dropped steadily, reaching
a low of 17,909 points on 18 March. With the gradual withdrawal of government restrictions, the
MDAX recovered and closed at 27,007 points on 30 September 2020. It was thus 4.3% above
previous year's figures (30/9/2019: 25,887 points).
As of 30 September 2020, the METRO share finished with a closing price of €8.52 in Xetra
trading on the Frankfurt Stock Exchange. This represents a decrease of −40% over the previous
year. On a total return basis – and thus methodologically comparable with the MDAX – the
METRO share recorded a decrease of −35% at the end of financial year 2019/20. The preference
share traded at €8.94 on 30 September 2020. The development of the METRO share price in
financial year 2019/20 was affected by the Covid-19 pandemic. Since mid-February, it developed
in line with its peer group but at the same time well below the MDAX.
Listed companies in the food wholesale industry have seen their share prices drop
considerably more sharply than the stock market as a whole. They also experienced a weaker
recovery in the summer months. Scepticism about the future of the hospitality industry and
tourism continued to weigh on share prices. Consequently, the entire sector remains heavily
dependent on news about Covid-19 and prospects for the hospitality industry. Against this
background, the METRO share did not benefit long-term from positive events in the course of
the financial year, such as the sale of the majority stake in METRO China and the disposal of the
hypermarket business. Even the significant recovery in business development and key financial
figures, which began at the end of Q3 and continued into Q4, did not affect the share to the
same extent as the key financial figures indicated.
DEVELOPMENT OF THE METRO SHARE (%)
40
60
100
80
120
PPeer Gr
eer Group
oup
METRO
METRO
MD
MDAAXX
1/10/2019
30/9/2020
30/6/2020
31/3/2020
31/12/2019
PPeer Gr
eer Group
oup
METRO
METRO
MD
MDAAXX
Peer group: Bidcorp, Bizim Toptan, Eurocash Group, Marr, Performance Food Group, Sligro, Sysco, US Foods
M E T R O  I N  F I G U R E S
M E T R O  S H A R E
22
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

METRO SHARE
2018/19
2019/20
Closing price
Ordinary share
€
14.48
8.52
Preference share
€
12.90
8.94
High
Ordinary share
€
16.07
15.11
Preference share
€
14.65
13.45
Low
Ordinary share
€
11.69
6.41
Preference share
€
10.95
7.70
Dividends
Ordinary share
€
0.70
0.701
Preference share
€
0.70
0.701
Dividend yield
based on closing price
Ordinary share
%
4.8
8.21
Preference share
%
5.4
7.81
Market capitalisation (billion)
€
5.3
3.1
1 Subject to the resolution of the Annual General Meeting.
Data based on Xetra closing prices
Source: Bloomberg
METRO SHARE DATA
Ordinary share
Preference share
Ticker symbol
B4B
B4B3
Securities identification number
BFB001
BFB002
ISIN code
DE000BFB0019
DE000BFB0027
Reuters symbol
B4B.DE
B4B3_p.DE
Bloomberg symbol
B4B GY
B4B3 GY
Number of shares
360,121,736
2,975,517
Exchange segment of the Frankfurt Stock Exchange
Prime Standard
Prime Standard
Stock exchange
Frankfurt
Frankfurt
Shareholder structure of METRO AG
In preparing the annual financial statements, the largest (indirect) shareholders of METRO AG –
based on the voting right notifications received by METRO AG in accordance with the German
Securities Trading Act (WpHG) – are EP Global Commerce GmbH with 29.99% of the ordinary
shares as well as Meridian Stiftung and Beisheim Holding, to which a total of approximately
23.06% of the ordinary shares are allocated in a pooling agreement. These 3 shareholders thus
hold a total of 53.05% of the voting rights. In addition, CECONOMY AG holds 0.99% of the
ordinary shares of METRO AG. Under the terms of the 2016 demerger agreement, these shares
cannot be sold until 1 October 2023. EP Global Commerce GmbH also announced on 20
November 2020 that its takeover bid was accepted for around 10.60% of METRO’s ordinary
shares. If the acquisition is completed after the conditions described in the offer document have
been met (mainly merger control clearances), the proportion of ordinary shares held by EP
Global Commerce GmbH will increase to 40.59%.
For more information about details of the pooling agreement between Meridian Stiftung and Beisheim Holding, see
chapter 7 takeover-related disclosures in the combined management report
page 123 .
M E T R O  I N  F I G U R E S
M E T R O  S H A R E
23
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

As of 30 September 2020, 46.95% of METRO AG shares are free-floating and held by a number
of national and international investors, whereby the geographical distribution of the
international free-floating shares mainly consists of investors from the USA, the United Kingdom
and continental Europe.
SHAREHOLDER STRUCTURE1
as of 30/9/2020
Meridian Stiftung/Beisheim Holding
EP Global Commerce
Free-floating shares
MS/BH2
EP
FFS
MS/BH
MS/BH22
EP
EP
FFS
FFS
23.06%
29.99%
46.95%
10
1000..00%
00%
1 The information above is in particular based on notifications of voting rights pursuant to the German Securities Trading Act that were received and published by
METRO AG.
2 Vote on exercising voting rights under the pooling agreement.
Market capitalisation and index inclusion
The market capitalisation of METRO AG was €3.1 billion at the end of September 2020. In
financial year 2019/20, a typical trading day at the Frankfurt Stock Exchange saw an average of
around 985,000 of METRO’s ordinary shares traded. On average, about 2,200 of the significantly
fewer liquid preference shares were exchanged on each trading day.
The METRO AG ordinary share is included in a number of indices, most noteworthy the MDAX.
The composition is based on fixed inclusion criteria. In addition to being listed in the Prime
Standard and a free float of more than 10%, inclusion in the index depends on the free-float
market capitalisation and the stock exchange turnover. In terms of market capitalisation, METRO
was ranked 45th in the MDAX and 9th in terms of trading volume.
Sustainability is a high priority for METRO. Consequently, the company is fostering the
continuous dialogue with sustainability-oriented investors, analysts and rating agencies. The
METRO share is represented in numerous sustainability indices, such as the Dow Jones
Sustainability Index (World and Europe), the FTSE4Good Index, the MSCI World ESG Leaders
Index and its European counterpart.
Dividend and dividend policy
The Management Board and the Supervisory Board of METRO AG will propose a dividend of
€0.70 per share to the Annual General Meeting on 19 February 2021. This dividend proposal
corresponds to 55% of the reported earnings per share of €1.27 and is thus within the payout
ratio of 45% to 55% as envisaged by METRO’s dividend policy. The dividend yield on the basis of
M E T R O  I N  F I G U R E S
M E T R O  S H A R E
24
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

the closing price on 30 September 2020 is 8.2% for the METRO ordinary share and 7.8% for the
preference share.
Analysts’ recommendations
16 analysts have regularly published analyses and reports about the METRO share over the
course of financial year 2019/20. 1 analyst recommends to buy the METRO share; 9 analysts rate
the METRO share neutrally in the medium to long term; 4 analysts recommend selling the share
and 2 analysts were ‘restricted’ at the end of the financial year. The median value of share price
targets, which usually only represent a short-term perspective for the next 6 to 12 months and
are currently impacted by the Covid-19 pandemic, was €8.25 at the end of September 2020
(€14.60 at the end of September 2019).
Grade
Bank
Registered office
Share price
target (€)
Buy
Commerzbank
Frankfurt
10.00
Hold
Barclays
London
8.50
Berenberg
London
9.00
DZ Bank
Frankfurt
9.00
HSBC
London
8.00
Independent Research
Frankfurt
9.20
Invest Securities
Paris
7.70
Jefferies
London
8.50
LBBW
Stuttgart
8.00
M.M.Warburg
Hamburg
8.50
Sell
Exane
London
4.10
Baader Bank
München
8.00
Oddo BHF
Paris
7.50
BofA
London
8.00
Restricted
J.P. Morgan
London
–
Société Générale
Paris
–
M E T R O  I N  F I G U R E S
M E T R O  S H A R E
25
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Investor Relations
The METRO Investor Relations team is in continuous dialogue with analysts, institutional
investors and retail investors. The team is guided by the principles of customer-focused capital
market support:
Topicality: assurance of information leadership
Continuity: consistency in external communications
Credibility: disclosure of accurate information
Equal treatment: same information in terms of time and content for all recipients
In addition to the regular quarterly and yearly reporting, the Investor Relations team is also
available for personal meetings at roadshows and conferences. It also conducts numerous
individual and group discussions, store inspections and telephone conferences.
All information about the METRO AG share is available in German and English from the
Investor Relations section of the website.
Among other things, the website offers additional information about METRO’s corporate
strategy and business development, all current publications, the schedule of events and the
annual report. A webcast is available for all METRO events. The Investor Relations team can also
be contacted directly. The Annual General Meeting of METRO AG provides all shareholders with
the opportunity to learn about the current developments at METRO.
Its active membership in the German Equity Institute (Deutsches Aktieninstitut e. V., DAI) in
Frankfurt allows METRO to actively promote an investment culture with an affinity for equities in
Germany. METRO is also committed to the principles of open and continuous communications,
which is expressed in the company’s membership in the German Investor Relations Association
(Deutscher Investor Relations Verband e. V., DIRK).
Contact Investor Relations
METRO AG
Investor Relations
Schlüterstraße 1
40235 Düsseldorf, Germany
T +49 211 6886-1280
F +49 211 6886-73-3759
investorrelations@metro.de
investors.metroag.de
M E T R O  I N  F I G U R E S
M E T R O  S H A R E
26
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

METRO
28

GOALS AND STRATEGY
METRO
METRO successfully completes transformation to becoming a pure wholesaler.
Continuation of the successful strategy with consistent implementation of the Wholesale 360
approach in order to position itself as the partner of choice for wholesale customers and in
particular the core customer groups HoReCa and Traders.
The current strategy forms the basis to emerge stronger from the crisis.
METRO is a leading international food wholesaler and global market leader in the cash-and-carry
format. METRO is managed by METRO AG as the central strategic management holding
company. Furthermore, central management and administrative functions are deeply enshrined
within METRO AG.
The transformation of the group back to a pure wholesale company was completed with the
successful sale of the Real sales line. METRO operates globally in more than 30 countries,
including 24 countries with 678 wholesale stores under the METRO and MAKRO brands. The
delivery business (Food Service Distribution, FSD) is also part of the wholesale segment,
including the METRO delivery service and the companies specialised in delivery: Classic Fine
Foods, Pro à Pro and Rungis Express.
Other business divisions, which essentially support the wholesale activities, are bundled in
the Others segment. This particularly includes the group’s digitalisation initiatives. They mainly
comprise the activities of the Hospitality Digital and METRO MARKETS business units. The
segment also includes the real estate company METRO PROPERTIES as well as various service
companies that provide services in the areas of logistics, information technology, advertising
and procurement.
METRO’s strategy is aimed at long-term, consistent growth of sales and earnings. The
wholesale business targets a very attractive industry sector that is characterised by very strong
customer relationships (compared to food retail), a high number of returning customers, large
shopping baskets and high productivity at significantly lower operating costs.
HoReCa and Traders focus
The 2 core customer groups of METRO are HoReCa and Traders. The HoReCa section includes
hotels, restaurants, bars and cafés as well as catering companies, canteen operators and street
food vendors. The Traders section includes, for example, small grocery stores, kiosks as well as
petrol stations and other wholesalers. Both core customer groups have huge market potential,
which we believe is based on the following factors, among others. On the one hand, both
customer groups have an attractive, continuously growing market size; on the other hand, the
number of prospective customers is very high due to the local competition between many
(independent) providers on the HoReCa and Traders markets. A third group of customers are
Service Companies and Offices (SCO).
G O A L S  A N D  S T R A T E G Y
M E T R O
28
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Portfolio and market consolidation
In the core customer groups HoReCa and Traders, METRO aims to play a leading role as a
product and service provider, depending on local market conditions. METRO combines an
extensive network of modern wholesale stores with delivery business and digital services such
as a system for ordering meals. The country portfolio of METRO is divided into core customer
groups and regions, and is regularly reviewed with regard to the feasibility of a local market
leadership and the attractiveness of the respective markets. Accordingly, possible portfolio
adjustments of METRO adhere to strict implementation of the strategy to achieve a leading role
in the respective market. On the one hand, this can be done through acquisitions for further
market consolidation, but on the other hand it does not rule out market exits for portfolio
simplification.
Localisation via country-specific value creation plans
METRO consistently aligns its business model to customer value and strengthens its local
organisations to establish a closer relationship with B2B customers. Depending on the main
customer focus in the respective countries, METRO offers a product range that is tailored to the
specific requirements of its customers. By tailoring METRO products, services and sales channels
to local needs, we can exploit local market opportunities to their full potential.
Based on the business model, the national subsidiaries develop and implement their local
strategies, which are then translated into individual value creation plans and enable growth
according to local conditions. The central holding functions support local value creation, in
particular by relieving administrative tasks. Based on the country-specific and locally generated
value creation plans, METRO has identified significant strategic value enhancers for its wholesale
business:
METRO aims to leverage the full potential of the markets it serves across all core customer
groups. This is accomplished by differentiating the wholesale stores, for example by
designing stores that are specifically tailored to the different customer groups and their
respective needs.
We intend to further expand the delivery business because it is attractive and complements
the core business of the wholesale stores. Delivery is the most important procurement
channel for HoReCa customers in most countries.
METRO has set the goal to further roll out the Trader Franchising Model in countries such as
Poland, Romania and Russia. METRO operates in a similar way as a franchisor with its own
brand identity. It provides products and offers additional services to the participating
independent grocery stores, such as training courses and assortment consultancy. The
expansion of the model helps open up new growth opportunities in relevant markets. We are
also exploring strategic B2B partnerships with online food retailers to complement our
Traders strategy. To date, METRO has already established partnerships in 5 countries and is
conducting pilot projects in 4 other countries.
G O A L S  A N D  S T R A T E G Y
M E T R O
29
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

We want to win over our customers through our explicit customer orientation. With the Net
Promoter Score (NPS), METRO continuously measures customer satisfaction through
frequent surveys on the shopping experience. We use the results of the customer surveys to
further improve our customer value proposition. It includes in particular the design of our
product range, including own brands tailored to the specific quality requirements of our
professional customers, pricing geared to bulk consumers and a range of corresponding
services. By offering customers training, further education and professional advice, METRO
enables them to benefit from its know-how.
We aim to increase our operating efficiency in order to reduce our cost base. To this end, the
group-wide synergy potential should be exploited, for example by expanding joint
purchasing in METRO countries. On the other hand, cost advantages are to be realised
through strategic cooperation projects with international retail and wholesale companies, for
example by reducing procurement costs through international purchasing alliances.
Wholesale 360
Building on the successful core business, METRO is expanding its business model within the
framework of the strategic Wholesale 360 approach. Across all groups, the majority of METRO
customers are small and medium-sized companies as well as sole traders. One objective of the
Wholesale 360 approach is to strengthen the competitiveness of its customers – not only to
make them and their business model more successful, but also with the aim of increasing
customer retention over the long term and to become the preferred partner for HoReCa and
Traders customers. Consequently, METRO assists its customers with their business challenges by
providing them with sustainable solutions with superior added economic value, which we have
combined under the Wholesale 360 approach.
To achieve this, METRO leverages its experience, knowledge, resources and global presence,
which it has gained and succesfully expanded in more than 55 years since the first METRO store
was opened in Germany. In addition, in a constantly changing environment, METRO identifies the
current and future challenges of the customers at an early stage to offer them professional
services and digital solutions. In doing so, we are pursuing the goal of expanding the customer
relationship from a transactional merchandise trade to a sustainable and holistic partnership and
thereby clearly differentiating ourselves from other wholesalers.
The Wholesale 360 approach is made up of 6 subject areas: expanded products, consulting,
digital tools, marketplace, services and equipment.
METRO’s core competence is to offer ultra-fresh, high-quality food at attractive prices,
tailored to local needs. To this end, METRO’s national subsidiaries continuously develop their
product range and adapt it to changes in order to increase customer satisfaction, shopping
cart size and repurchase rates.
G O A L S  A N D  S T R A T E G Y
M E T R O
30
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Our customers are faced with a variety of complex challenges, for example, in the area of
human and time resources, efficient business management, product range design or the
financial resources of their companies. We offer individual top consulting, based on the know-
how and experience of METRO. For this purpose, METRO invests in the consulting
competence of the customer managers and uses the possibilities of data analysis. In the
future market India, METRO and the Fintech company ePayLater developed the ‘Digital Shop’
app for kirana traders. With this app, sales can be efficiently tracked, inventories managed
and payments processed digitally and free of charge.
Access to digital solutions and innovative applications is a key subject area of our Wholesale
360 approach. The Hospitality Digital business unit offers customers from the hospitality
industry convenient access to digital applications, such as free services for creating a website,
online reservation systems or efficient staff management systems. Moreover, applications are
available for optimising the respective operation, such as the MenuKit for automatic
calculation of the cost of goods sold. These applications provide commercial added value for
hospitality customers and will be used in a targeted manner in the future to expand existing
customer relationships and to achieve an increase in new customers. Digitalisation represents
an important strategic growth area and an investment into METRO’s future, and is
consistently being implemented, in particular, by METRO-NOM, the group’s own IT subsidiary.
METRO-NOM assists in the digital transformation of METRO and develops IT solutions for
METRO and customer contact points. It includes, for example, the M-Shop customer platform
and the METRO Companion shopping app.
METRO MARKETS has been operating an online marketplace in Germany since September
2019, which targets HoReCa wholesale customers in particular. An international roll-out of the
marketplace is being prepared.
The range of services within the scope of the Wholesale 360 approach is continuously
analysed, intensively worked on and optimised, as we expect it to provide noticeable growth
impulses in the future. First, we are offering additional services such as financial services in
selected countries.
Modern equipment in the modern hospitality industry helps increase productivity and cut
costs, while at the same time offering a high level of service quality. Strategic collaborations
also enable integrated solutions, such as the offer of professional equipment at advantageous
conditions. In cooperation with Pentagast, the largest association of resturant and kitchen
equipment suppliers in Germany, we provide trend-setting food and kitchen solutions. METRO
is thus expanding its product range and reaching further potential customers.
Covid-19
METRO is also affected by the global Covid-19 pandemic and its consequences. The pandemic
poses enormous challenges for our business.
The hospitality industry, which experienced a very positive growth dynamic over the last
decade, was and still is particularly restricted by Covid-19. This is primarily due to official
restrictions imposed by the authorities to contain the pandemic. In the long term, the HoReCa
sector is generally benefiting from the trend of increasing out-of-home consumption. The
Traders customer group, which benefits from the continuing trend towards convenience
solutions, was less affected by the restriction of business activities compared to the hospitality
industry. In many cases, Traders as local suppliers in food retail were even able to benefit from
the situation due to increased consumption at home.
G O A L S  A N D  S T R A T E G Y
M E T R O
31
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

So far, our diversified customer structure and multichannel approach have proven to be
strengths and competitive advantages in the pandemic. Moreover, the pandemic is helping to
accelerate the pace of digitalisation among our core customer groups, which is reflected in the
increased demand and use of our digital solutions. In connection with the pandemic, we see an
increased need for more advanced, situation-specific solutions, which we are analysing and
offering as part of our Wholesale 360 approach.
National and regional authorities have responded with a wide range of measures to this
pandemic, which to date has been characterised by outbreak patterns that vary significantly in
terms of geography and time. Thanks to our locally based business model, we are in a position
to deal with the respective situation appropriately. In order to make the best possible use of
opportunities arising from the respective situation and to avert potential risks, we temporarily
adjust the priorities in our country-specific value creation plans on a case-by-case basis to the
benefit of our business.
Overall, our experience during the pandemic has so far confirmed our basic strategy. We are
convinced that, thanks to our strategy, we will emerge even stronger from the pandemic.
Real estate
METRO has extensive real estate assets and manages a portfolio of more than 700 operating
properties. The real estate sector makes a significant and long-term contribution to the business
success of the wholesaler.
METRO PROPERTIES concentrates the real estate know-how of METRO and has established
itself on the market as a reputable real estate company. The company operates, develops and
markets an international portfolio of properties. Its activities cover the entire life cycle of
METRO’s real estate assets: from future-oriented investments, economic property operation/
maintenance to sustainable and creative development of real estate assets as well as the
realisation of capital gains during disposal at the right point in time. In financial year 2019/20,
the focus was on the successful disposal of real estate assets in connection with the sales
transactions of METRO China and Real. METRO PROPERTIES is supporting the buyer of the real
estate assets associated with Real for a transitional phase with a comprehensive, professional
range of services. Together with our Chinese partner Wumei, initial talks were held about a joint
project development, for example in Shanghai or Chongqing. The real estate portfolio was
subjected to an updated, extensive analysis and clustering in order to identify project
development potential and to examine sale-and-leaseback opportunities. For example, it
included an urban planning competition to identify new uses for the METRO Campus in
Düsseldorf.
G O A L S  A N D  S T R A T E G Y
M E T R O
32
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Sustainability
METRO is strongly committed to promoting the success and satisfaction of its more than
16 million customers worldwide and pursues this goal in a responsible manner. For more than 20
years, METRO has been striving to realign all corporate processes towards sustainability in its
own business operations as well as in relation to upstream supply chains. In addition to reducing
food waste and promoting conscious consumption, the company is determined to pursue a clear
commitment to cut its CO2 emissions in half by 2030 when compared to 2011. Sustainability is
not only an established part of METRO’s business model, but also an indispensable element of
the wholesale specialist’s future strategy with focus on resource availability, talent acquisition
and retention as well as customer demand and regulation.
Further information about sustainability at METRO can be found in the combined management report in chapter 2.4
Combined non-financial statement of METRO AG
page 44 .
G O A L S  A N D  S T R A T E G Y
M E T R O
33
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

1
OVERVIEW OF FINANCIAL
YEAR 2019/20
AND OUTLOOK
36
2 PRINCIPLES OF THE
GROUP
39
2.1
Group business model
39
2.2 Management system
42
2.3 Innovation management
44
2.4 Combined non-financial statement of
METRO AG
44
3 ECONOMIC REPORT
63
3.1
Macroeconomic and sector-specific
parameters
63
3.2 Asset, financial and earnings position
66
Financial and asset position
67
Earnings position
76
4 REPORT ON EVENTS
AFTER THE CLOSING DATE
AND OUTLOOK
84
Events after the closing date
84
Outlook
84
5 OPPORTUNITIES AND RISK
REPORT
89
Risk management system and internal
control system
89
Identification, assessment and steering of
risks
90
Internal control system for financial and
operational processes
92
Description of the opportunity and risk
situation
94
Management’s overall assessment of the
opportunity and risk situation
103
6 REMUNERATION REPORT
104
The remuneration system for members of the
Management Board
104
Remuneration of members of the
Supervisory Board
120
7 TAKEOVER-RELATED
DISCLOSURES
123
8 SUPPLEMENTARY NOTES
FOR METRO AG
(PURSUANT TO THE
GERMAN COMMERCIAL
CODE)
132

COMBINED MANAGEMENT
REPORT
1 OVERVIEW OF FINANCIAL YEAR 2019/20
AND OUTLOOK
Unless expressly stated otherwise, all subsequent presentations refer to continuing operations.
Furthermore, reporting of the results for the financial year takes the new leasing standard IFRS
16 into account (full retrospective application).
Financial year 2019/20 is characterised by the impact of the Covid-19 pandemic, but also by
the successful sale of the hypermarket business and the majority stake in METRO China. With
these transactions the transformation to becoming a pure wholesaler was successfully
completed. The Management Board had also announced efficiency measures for financial year
2019/20. The costs of these efficiency measures, which mainly relate to personnel measures at
the headquarters, have been reported separately since financial year 2019/20 as transformation
costs due to their non-recurring nature. Therefore, the following items are defined as follows:
Adjusted EBITDA: EBITDA excluding transformation costs and earnings contributions from
real estate transactions
EBITDA: EBITDA as reported in the financial statements, including transformation costs and
earnings contributions from real estate transactions
Earnings position
Like-for-like sales declined by −3.9%; in local currency, sales declined by −4.0% and reported
sales fell by −5.4% to €25.6 billion
The adjusted EBITDA amounted to €1,158 million (2018/19: €1,392 million). Transformation
costs of €47 million (2018/19: €0) were incurred; earnings contributions from real estate
transactions reached €3 million (2018/19: €339 million). The reported EBITDA reached
€1,113 million (2018/19: €1,731 million)
Profit or loss for the period (from continuing operations) amounted to €−140 million (2018/19:
€427 million)
Earnings per share (continuing operations): €−0.40 (2018/19: €1.16)
For continuing and discontinued operations, profit or loss for the period amounted to
€471 million (2018/19: €333 million) and earnings per share to €1.27 (2018/19: €0.89)
C O M B I N E D
M A N A G E M E N T  R E P O R T
1  O V E R V I E W  O F  F I N A N C I A L  Y E A R  2 0 1 9 /
2 0 A N D O U T L O O K
36
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Financial and asset position
Net debt decreased to €3.8 billion (30/9/2019: €5.4 billion)
Investments totalled €0.6 billion (2018/19: €0.8 billion)
Cash flow from operating activities reached €0.6 billion (2018/19: €1.2 billion)
Total assets (continuing and discontinued operations) amounted to €13.2 billion (30/9/2019:
€17.8 billion)
Equity (continuing and discontinued operations): €2.1 billion (30/9/2019: €2.3 billion)
Long-term rating: BBB- (Standard & Poor’s)
Outlook of METRO
The Management Board of METRO AG expects a return to sustainable sales and earnings growth
after the Covid-19 pandemic and confirms the clear ambition to improve METRO’s competitive
position and to gain further market share. This conviction is backed by a continuously strong
financial profile, learnings taken from the first wave of Covid-19, the ability to preempt the needs
of the customers and to be a leading player in the expected consolidation of the wholesale
industry.
For financial year 2020/21, however, METRO’s financial performance will be impacted by the
development of the Covid-19 pandemic. First, there is an impact of Covid-19-related
governmental restrictions to public life, which is difficult to estimate. Duration and intensity of
those restrictions determine that impact but are yet unknown. Second, there is an upside
potential, which would result from an earlier than expected widely available vaccination. The
Management Board therefore plans with different scenarios and updates them regularly.
Based on stable exchange rates and no adjustments to the portfolio METRO currently expect
sales (both total sales and like-for-like) to be slightly below previous year. EBITDA adjusted is
expected to decline by a mid-double-digit million euro amount. This outlook thereby assumes
governmental restrictions to public life to last partially until mid Q2 of financial year 2020/21 and
a fast and substantial recovery of the hospitality and tourism industry thereafter. Experiences
gained from managing the first wave of Covid-19 will, along with cost efficiency and proven
measures to protect the business, allow METRO to mitigate the impact on METRO’s operations
compared to spring 2020. In line with observations in November 2020, the Management Board
expects one month of full lockdown in the entire country portfolio will result in average sales
losses of around €400 million equalling sales losses of approximately 1.5 percentage points of
sales growth compared to previous year.
The sensitivity of sales and earnings to the duration and severity of governmental restrictions
is likely to follow the same pattern as in the previous year, with the by far highest impact in
HoReCa driven regions, esp. in the segment Western Europe. In contrast, the segments Russia
and Asia are expected to perform better than the group. On group level, the Management Board
generally expect a back end-loaded performance, given the high comparison base in H1 (little to
no Covid-19 impact on group level in previous year) and an expected more favourable business
environment from spring 2021 onwards.
C O M B I N E D
M A N A G E M E N T  R E P O R T
1  O V E R V I E W  O F  F I N A N C I A L  Y E A R  2 0 1 9 /
2 0 A N D O U T L O O K
37
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Given the uncertainty regarding the further development of Covid-19, the operational
business keeps on following the “Protect-Preserve-Grow” strategy, which has proven to be
effective in financial year 2019/20. This strategy was key for the continuous market
outperformance and the rapid recovery METRO has shown during and after the first wave of
Covid-19 and it includes,
ensuring safety of employees and customers,
optimising the cost base by adjusting capacities and scaling back discretionary capital
expenditures,
leveraging flexible store and delivery operations
fostering strong customer relationships by being an uncompromising business partner.
C O M B I N E D
M A N A G E M E N T  R E P O R T
1  O V E R V I E W  O F  F I N A N C I A L  Y E A R  2 0 1 9 /
2 0 A N D O U T L O O K
38
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

2 PRINCIPLES OF THE GROUP
2.1 Group business model
METRO is a leading international specialist in food wholesale. The group is headed by
METRO AG, which acts as the central management holding company. It performs group
management functions, among others in the areas of finance, controlling, legal and compliance
as well as purchasing and human resources. Central management and administrative functions
for METRO are anchored within METRO AG.
In its core wholesale business, METRO operates globally with 678 stores in 24 countries.
METRO is active with the delivery business (Food Service Distribution, FSD) in another 10
countries. It includes the METRO delivery service as well as the delivery specialists Classic Fine
Foods, Pro à Pro and Rungis Express.
The core customer groups of METRO are HoReCa and Traders. The HoReCa section includes
hotels, restaurants, bars and cafés as well as catering companies, canteen operators and street
food vendors. The Traders section includes small grocery stores, kiosks as well as petrol stations
and other wholesalers.
Across all customer groups, the majority of customers are small and medium-sized companies
as well as sole traders. METRO wants to assist them with their business challenges by providing
them with sustainable solutions with superior added economic value, which we have combined
under the Wholesale 360 approach.
The group’s digitalisation activities are bundled under the Others segment. They mainly
comprise the activities of the Hospitality Digital and METRO MARKETS business units. The
Others segment also includes the service companies METRO PROPERTIES, METRO LOGISTICS,
METRO-NOM, METRO ADVERTISING and METRO SOURCING. These companies provide real
estate, logistics, IT, advertising and procurement services.
OVERVIEW OF METRO
METRO
METRO
Germany
METRO
Western
Europe
(excl.
Germany)
METRO
Russia
METRO
Eastern
Europe
(excl. Russia)
METRO
Asia
Others
– Hospitality Digital
– METRO MARKETS
– METRO PROPERTIES
– Other service companies
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
39
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

METRO
As an omnichannel operator, METRO combines a wide network of modern
wholesale stores with a wide-ranging delivery service (FSD). It is an
internationally leading player in this field. With its segments METRO Germany,
METRO Western Europe (excluding Germany), METRO Russia, METRO Eastern
Europe (excluding Russia) and METRO Asia, METRO is active in 34 countries. It
operates 678 wholesale stores in Europe and Asia under its brands METRO and
MAKRO. Its more than 16 million commercial customers worldwide are mainly
hotels, restaurants, catering companies, independent retailers, as well as service
providers and authorities, to which METRO offers a portfolio of products and
solutions that has been tailored to their specific requirements. In the area of
Food Service Distribution (FSD), METRO maintains a strong presence with its
METRO Delivery Service and the delivery companies Classic Fine Foods, Pro à
Pro and Rungis Express. Classic Fine Foods is an Asian delivery company for a
wide range of deli food with premium customers, mainly in Asia and the Middle
East. Pro à Pro delivers products to commercial customers across France, in
particular in the fields of corporate catering, canteens and system catering.
Rungis Express is an important upmarket food delivery company in Germany
that mainly caters to hotels, restaurants and caterers (HoReCa).
Others
The Others segment mainly includes the Hospitality Digital, METRO MARKETS
and METRO PROPERTIES business units. Hospitality Digital pools the group’s
digitalisation efforts for customers from the hospitality sector. These efforts
include the development of tailor-made digital solutions for HoReCa customers.
METRO MARKETS is further expanding its digital portfolio for independent
restaurateurs with a new B2B online marketplace. Through this distribution
channel, METRO offers non-food articles from its own product range as well as
products from third parties. The sales and pro rata costs generated by METRO
MARKETS are included in the operating units, while the development activities
of METRO MARKETS beyond it are included in the Others segment. METRO
PROPERTIES develops, operates and markets an international real estate
portfolio. For additional business such as subletting, METRO benefits from the
business unit’s extensive market expertise. Thus the real estate segment makes
a sustainable and significant contribution to the overall business success of
METRO. Other service companies are also assigned to this segment.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
40
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

STORE NETWORK BY COUNTRY AND SEGMENT
as of the closing date of 30/9
METRO
Stores
Delivery
2020
2020
METRO Germany
103
FSD, Rungis Express,
METRO MARKETS
Belgium
17
FSD
France
98
FSD, CFF, Pro à Pro
Italy
49
FSD
Netherlands
17
FSD
Austria
12
FSD, Rungis Express
Portugal
10
FSD, Rungis Express
Spain
37
FSD, Rungis Express
METRO Western Europe (excl. Germany)
240
METRO Russia
93
FSD
Bulgaria
11
FSD
Kazakhstan
6
FSD
Croatia
10
FSD
Moldova
3
FSD
Poland
29
FSD
Romania
30
FSD
Serbia
9
FSD
Slovakia
6
FSD
Czech Republic
13
FSD
Turkey
34
FSD
Ukraine
32
FSD
Hungary
13
FSD
METRO Eastern Europe (excl. Russia)
196
India
27
FSD
Japan
10
FSD, CFF
Pakistan
9
FSD
METRO Asia
46
Total
678
Countries without stores
China
–
CFF
Indonesia
–
CFF
Malaysia
–
CFF
Myanmar
–
FSD
Philippines
–
CFF
Switzerland
–
Rungis Express
Singapore
–
CFF
United Arab Emirates
–
CFF
United Kingdom
–
CFF
Vietnam
–
CFF
FSD = Food Service Distribution, CFF = Classic Fine Foods
Total countries: 34; countries with stores: 24; METRO countries: 25 (Myanmar only FSD); CFF countries: 10; Rungis countries: 5; Pro à Pro countries: 1; METRO MARKETS
countries: 1.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
41
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

2.2 Management system
METRO focuses strategically on creating additional customer value for the wholesale business.
The objective is to increase the company value sustainably. This principle is also reflected in our
internal management system. METRO uses the key performance figures described in the
following for the planning, management and control of our business activities. Selected key
performance indicators of our management system (like-for-like sales growth, EBITDA and
Return on Capital Employed) form the basis for the Management Board’s variable remuneration
component.
The focus of the group’s operational management is on those value drivers that have a direct
effect on the medium- and long-term corporate objectives and are directly related to the
strategy.
The first important key performance indicators for METRO are exchange rate-adjusted sales
growth (as a total figure and a like-for-like figure) and the EBITDA excluding transformation
costs and earnings contributions from real estate transactions. Our management system also
makes use of other significant performance indicators, which are explained in the following.
MANAGEMENT SYSTEM
Like-for-like-sales
Total sales
EBITDA
EBIT
Profit or loss for the period
Earnings per share
Investments
Net working capital
Net debt
Free cash flow conversion
Return on Capital Employed
Capital deployment
Operational earnings power
Growth
Company value
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
42
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Key performance indicators describing the earnings position
The first of our most important key performance indicators for our operational business is the
exchange rate-adjusted sales growth (respectively as a total figure and a like-for-like figure). The
like-for-like sales growth represents the sales growth measured in local currency generated on a
comparable selling space or in relation to a comparable panel of locations or merchandising
concepts, such as online shopping and delivery. The figure only includes sales of locations with a
comparable history of at least 1 year. It follows that sales generated by locations that were
affected by openings, closures, significant redevelopment works or other conceptual changes in
the reporting year or the comparison year are excluded from the analysis.
The second of our most important key performance indicators, in addition to sales growth
adjusted for currency effects, is EBITDA excluding transformation costs and earnings
contributions from real estate transactions. This key performance indicator gives transparent
account of METRO’S operational performance. Irrespective of it, the development of real estate
assets and the proceeds from divestments remain core components of the group’s real estate
strategy.
In light of the strategic portfolio streamlining and the corresponding focus on the wholesale
business, METRO is implementing the following changes: starting with financial year 2019/20,
METRO is presenting this key performance indicator without accounting for transformation costs
resulting from (usually) non-recurring expenses in connection with the efficiency measures.
Therefore, deviating from previous reports, the following indicators are posted:
Adjusted EBITDA: EBITDA excluding transformation costs and earnings contributions from
real estate transactions
EBITDA: EBITDA as reported in the financial statements (including transformation costs and
earnings contributions from real estate transactions)
Other important key performance indicators of METRO are the profit or loss for the period and
the earnings per share. These key performance indicators ensure that the tax and net financial
result are given consideration in addition to the operational result and thereby allow for a
holistic assessment of METRO’S earnings position from the perspective of the shareholders.
For more information about these key performance indicators, see chapter 3 economic report −3.2 asset, financial
and earnings position – earnings position
page 76 .
Key performance indicators relating to the financial and asset position
The management of METRO’S financial and asset position aims at sustainably assuring liquidity
and arranging cost-effective sources for the financing requirements of our subsidiaries.
For more information about the financial and asset position, see chapter 3 Economic report −3.2 Asset, financial and
earnings position – financial and asset position
page 67 .
The key performance indicators used in this area also include the investments, which are
planned, reported and audited both in aggregate for the group as well as separately for the
segments. Investments are defined as additions to non-current assets (excluding financial
instruments and deferred tax assets).
Another focal point in the area of the financial and asset position are regular analyses of the
net working capital, which are carried out for the purpose of managing the operational business
and capital deployment. Developments in net working capital over time result from changes in
stock inventories, trade receivables and trade liabilities. Receivables due from suppliers are
recognised in the items other miscellaneous financial assets and non-financial assets.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
43
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The net debt and the cash flow before financing activities are also used as key performance
indicators to manage METRO’s liquidity and capital structure. The net debt results from the
balance of financial liabilities (including liabilities from leases), cash or cash equivalents and
short-term financial investments.
METRO also analyses the free cash flow conversion to measure the group’s success in
transforming the generated income into cash inflows. The free cash flow conversion results from
the ratio between the simplified free cash flow and the adjusted EBITDA after leasing-payments.
The simplified free cash flow is calculated as adjusted EBITDA less leasing-payments and cash
investments (excluding mergers and acquisitions) +/- changes in net working capital.
Value-oriented key performance indicators
The key performance indicator Return on Capital Employed (RoCE) is still used to assess the
operational business. This key figure measures the Return on Capital Employed (RoCE = EBIT /
average capital employed) in a certain period under review and allows for an assessment of the
performance of the group’s individual segments.
The resulting RoCE is benchmarked against the respective segment-specific cost of capital
before taxes, which represents a minimum yield on the employed capital at market rates and is
based on capital market models.
METRO also frequently uses value-oriented key performance indicators to assess both
prospective and past investments. Accordingly, METRO uses the discounted cash flow method,
the key figure economic value added (EVA) and other liquidity-oriented key performance
indicators such as the amortisation period to form its investment-related decisions.
2.3 Innovation management
METRO takes pride in driving innovation. Innovations make an important contribution to new
solutions, which METRO strives for in its operational business and in supporting its customers.
With the Hospitality Digital and METRO-NOM companies, we are pursuing the goal of
developing these types of solutions and making workflows more efficient. Digital solutions also
support METRO’s sustainability initiatives by making processes more efficient.
2.4 Combined non-financial statement of METRO AG
With this chapter, METRO AG fulfils its duty to produce a non-financial statement (NFS) for the
holding company, pursuant to § 289b–e of the German Commercial Code (HGB), and a non-
financial group statement, pursuant to § 315b–c in conjunction with § 289c–e of the German
Commercial Code (HGB), in the form of a combined non-financial statement. As a separate
chapter, this declaration constitutes a part of the combined management report. Unless stated
otherwise, the concepts described here apply to the entire group as well as the holding
company. Unless expressly stated otherwise, all presentations in the combined management
report refer to continuing operations (excluding the hypermarket business and excluding METRO
China). The Management Board of METRO AG is fully involved in all topics presented here and is
regularly updated about their progress.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
44
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The NFS was produced in consideration of the GRI standards for corporate responsibility
reporting and the UN Global Compact. The contents are not subject to statutory audits of the
annual and consolidated financial statements, but are part of a limited assurance business audit
according to ISAE 3000 by KPMG AG Wirtschaftsprüfungsgesellschaft. The assurance statement
of the independent auditor is available at www.metroag.de/cr-report-2019-20/assurance.
Business model
For more information about METRO’s business model, see chapter 2 principles of the group – 2.1. group business
model
page 39 .
METRO SUSTAINABLE
The framework for our actions and at the same time the driver for all our activities aimed at
increasing sustainability for our customers is our sustainability approach METRO SUSTAINABLE,
METRO’s core objective is to drive the transformation towards responsible and sustainable
business practices – within our own business operations, but above all in our collaboration with
our suppliers and customers. By reconciling our business imperative and goals with the needs of
nature, people and future generations, we can remain successful in the long term and overcome
the conventional limits of growth for us, our stakeholders and society as a whole.
We verified our sustainability approach in financial year 2019/20 in accordance with the
requirements of the German Commercial Code (HGB) by conducting a materiality analysis. The
assessment was carried out by the members of the Sustainability Committee based on the
legally required materiality definition. The aspects and issues identified in the analysis are the
content of this NFS and comply with the requirements of the HGB for the reporting of non-
financial content.
We are pursuing our operational sustainability strategy through the interaction of METRO
SUSTAINABLE and our Wholesale 360 strategic approach. The goal is to address the issues that
are most material to us to ensure that our sustainability activities cover the aspects and
concerns that have the greatest impact on our business and that we can leverage through our
business activities – together with our partners and customers. With our focus on the food
sector, it covers a total of 8 focus areas. To benefit our customers, we have transferred this
strategy to our concept ‘My sustainable restaurant’ in order to promote sustainable gastronomy
as a partner of independent companies and make it tangible and realisable for our customers.
Within the 8 focus areas, we concentrate on the following 3 key topics:
1.
We want to make our range of products and services more sustainable by positively
influencing the availability, quality and health as well as the social and environmental safety
of food. We also want to offer more organic and sustainable products.
2.
We promote more conscious consumption by finding solutions for a balanced ratio of
proteins.
3.
By pooling our partnership strengths, we are fighting against food waste.
At the same time, we are aware of our responsibility and opportunities when we stand up for
human rights, seek innovative solutions in the field of packaging and plastics, make a positive
contribution to climate protection, make the sourcing of raw materials more sustainable and
promote diversity and inclusion. We achieve it particularly through the discourse with internal
and external stakeholders such as employees, customers, suppliers and business partners, local
communities, NGOs, political representatives, investors, competitors and committees. Covid-19
has not resulted in any fundamentally new issues for us. However, challenges and opportunities
related to the aforementioned topics have arisen and have become more prominent. In
particular, aspects such as protecting the health of customers, employees and suppliers have
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
45
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

METRO SUSTAINABLE – OUR CONTRIBUTION TO
SUSTAINABLE DEVELOPMENT
Key Focus Areas
Extended Focus Areas
H
U
M
A
N
RI
G
H
TS
DI
V
E
R
SI
T
Y
+
IN
C
L
U
SI
O
N
R
A
W
M
AT
E
RI
A
L
S
O
U
R
CI
N
G
C
LI
M
AT
E
A
C
TI
O
N
PA
C
K
A
GI
N
G
+
PL
AS
TI
C
PP
RR
O
O
DD
UU
CC
TT
SS
PP
RR
O
O
TT
EE
II
NN
SS
RR
EE
SS
PP
O
O
NN
SS
II
BB
LL
EE
FF
O
O
O
O
DD
W
W
AA
SS
TT
EE
CC
O
O
NN
SS
CC
II
O
O
UU
SS
O
O
RR
GG
AA
NN
II
CC
++
SU
SUSSTTAINABLE
AINABLE
become more important (cf. Employee interests – Occupational safety in times of Covid-19
page 55 ; Social matters – Global labour and social standards in the supply chain and supplier
development
page 58 ; Customers – Customer satisfaction and innovation management
page 61 ).
Actively managing sustainability
In line with METRO AG’s strategy, sustainability is
systematically and organisationally entrenched in
the core business. Sustainability management
takes into account interdependencies between
economic, environmental and social aspects in an
efficient, solution-oriented manner and involves
the Management Board. On the one hand, this is
done through the work of the Sustainability
Committee, on the other hand, for example by
linking remuneration of the Management Board
and the global senior management to the
assessment of METRO’s sustainability
performance in the rating of the Dow Jones
Sustainability Index (DJSI).
As the highest sustainability body in the
company, the Sustainability Committee provides
the strategic framework and group-wide goals
and facilitates the exchange of information on
sustainability issues at the highest management
level – sometimes also with external input from
guest speakers. To adequately respond to the
specific market and customer requirements, the
METRO companies manage the operational implementation of overarching sustainable
development goals within this framework. They are responsible for working on the relevant
sustainability issues, for defining and implementing specific targets and measures and for
monitoring their success. The committee is chaired by 2 representatives from the top
management, who are regularly rotated. Other members of the committee are:
People in charge of corporate responsibility at METRO AG
Representatives of the core functions purchasing, communications and energy management,
investments & technical solutions
Representatives of the METRO national subsidiaries
Sustainability management is closely linked to our opportunity and risk management through
formalised reporting and assessment of sustainability-related opportunities and risks. This
enables the Management Board to systematically identify, evaluate and control deviations from
the sustainability goals and the associated opportunities and risks. In accordance with § 289c
Section 3 Sentence 1 Nos. 3 and 4 of the German Commercial Code (HGB), there are no
reportable risks for financial year 2019/20.
Our stakeholders evaluate all sustainability measures implemented, for example through
ratings. These assessments by independent third parties show us progress and potential for
improvement in our actions and are thus an important motivation and management tool for us.
ISS ESG (Institutional Shareholder Services – Environmental, Social, Governance: formerly
ISS-oekom) awarded the Prime Status C+ (on a scale from D- to A+) to METRO in April 2020
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
46
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

again to recognise them as a leader in the industry sector. In financial year 2019/20, we were
once again listed in the Food & Staples Retailing group in the internationally important Dow
Jones Sustainability Index World and Europe. In 2020, METRO was again listed in the
FTSE4Good index. For CDP Climate Change and Water, METRO achieved a rating of B (scale F
to A) in 2019 and is thus above the industry average. In 2019, METRO participated in the CDP
Forests project for the first time and earned a rating of B- (palm oil, soya, paper) and D (meat).
METRO shares are also included in the MSCI World ESG Leaders Index and its European
counterpart.
Environmental matters
Our approach is to significantly reduce the climate-relevant emissions caused by our business
operations and resulting from our supply chain as well as to decrease our consumption of
natural resources
1. We do this by focusing on behavioural change (Energy Awareness
Programme) and investment aimed at increasing our energy efficiency (Energy Saving
Programme). We also operate a global energy management system that identifies potential
savings in our stores and monitors our overall savings targets. In financial year 2019/20, we
reduced electricity consumption in our METRO stores by 7.9% in comparison to the previous
year and thus clearly exceeded our target of 3.4%. Effects of Covid-19 were observed only locally
and with small fluctuations. We cannot quantify the exact impact of the pandemic on our energy
consumption performance. Therefore, the key figures presented here as well as the conversions
into CO2 equivalents were included in the reporting in relation to the base year 2011 or the
previous year. The corresponding assessments refer to this basis of comparison. Furthermore, we
are also converting our cooling systems to natural refrigerants (F-Gas Exit Programme), insofar
as it is possible. This reduces our energy requirements as well as our costs. In financial year
2019/20, among other things, we invested €5.1 million in METRO’s Energy Saving Programme,
which saves us approximately €1.4 million in energy costs each year. Examples of measures in
the reporting year are:
The first transcritical ejector refrigeration plants were put into operation in Slovakia, as well
as in further projects in Germany, France, Italy, Belgium and Romania.
The last CFC systems were replaced by natural refrigerants in all stores in Russia.
Another 14 photovoltaic systems were installed in France, Belgium, Bulgaria, Austria, India
and Pakistan, with a total additional capacity of 7,086 kWp.
460 charging stations for electric vehicles were installed for METRO customers. At the
Düsseldorf Campus, 170 employees already use electric vehicles as company cars, whose
emissions are offset by certificates for hydroelectric power plants.
METRO uses an internal CO2 price, which was raised to €50 per tonne of CO2 in 2019. We use
the CO2 price to approve energy-efficient projects with lower financial savings. METRO is a
member of the Task Force on Carbon Pricing in Europe, which aims to put a price on all
relevant carbon emissions and thus achieve market- and competition-based decarbonisation.
1 Due to the company size and alignment (management), the aspect of environmental concerns is not significant for the holding company, METRO AG.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
47
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

In addition, we are currently conducting a comprehensive climate change scenario analysis for
the local and international fruit and vegetable supply chain at METRO.
This is METRO’s response to risks identified in initial scenario analyses (as recommended by
the Task Force on Climate-related Financial Disclosures, or TCFD) in our business operations as
well as in our supply chain:
Physical risks resulting from extreme weather events and water stress (scarcity or flooding)
Risks of business interruptions due to extreme weather events and risks caused by declining
economic power
Transition risks such as rising prices for CO2 emissions (with short-term impact on costs and
product prices)
Risks of resource scarcity and associated price increases (for example for agricultural
products in the next 5 to 10 years)
Risks caused by investments in new technologies (carbon-neutral cooling units planned
worldwide until 2030) and investments in the generation of renewable energies (extensive
installation of solar systems planned until 2030)
We incorporate these risks in our medium-term risk management and assess risks for sales and
costs, particularly those based on rising prices and decreasing availability of resources, taking
social concerns into account. No risks subject to mandatory disclosure pursuant to § 289c
Section 3 Sentence 1 Nos. 3 and 4 of the German Commercial Code (HGB) were identified.
Further key topics in relation to sustainable business operations are the prevention of waste,
the reuse and multiple applicability of resources and their recovery by means of recycling. The
reduction of food waste is an issue of particular importance to the operations of METRO. METRO
has therefore committed itself to the Resolution on Food Waste by the Consumer Goods Forum
(CGF) and thus to eliminate 50% of wasted food in our own operations by the year 2025
compared to 2016. We are currently working on updating this target. In 22 countries we
cooperate with food service organisations and social institutions in order to avoid food waste in
the stores, including our restaurants and warehouses. In addition, 9 of these countries cooperate
or plan to cooperate with Too Good To Go in order to reduce food waste in their own operations
(wholesale store and restaurant) and in joint efforts with customers. METRO is a member of the
‘10x20x30’ initiative and involves 20 of its most important business partners to reduce food
waste along the supply chain. Since October 2019, METRO has been a partner of Matsmart, a
Swedish start-up that resells surplus food in the B2B business and thus contributes to waste
reduction.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
48
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Status of climate protection target
From October 2019 to September 2020, METRO generated 247 kg of CO2-equivalents per
square metre of selling and delivery space. This figure is down from 267 kg in the previous year’s
period. Our goal is to reduce these emissions by 50% to 188 kg by 2030 compared with 2011.
With the 34.3% savings we have achieved so far, we are on the right track. In 2019, METRO
expanded the climate target to the supply chain and as the first German wholesale company set
a recognised science-based target for itself. In it, METRO AG undertakes to reduce its Scope 1
and Scope 2 CO2 emissions by 60% per square metre of selling and delivery space by 2030
compared to 2011. A reduction of 31.1% has been achieved in this area since 2011. Furthermore,
METRO AG is committed to reducing absolute Scope 3 CO2 emissions (supply chain) by 15% by
2030 compared to 2018. Our goals for Scope 1 and Scope 2 are thus in line with the reductions
required to keep global warming well below 2 °C by 2100 compared to pre-industrial levels.
Employee interests
Sustainable human resources (HR) strategy
By fully focusing on the wholesale business, we are setting the course for our future. Our
employees are the key success factor in this business model. They implement our strategy and
bind customers to our company as partners through long-term relationships. It is therefore
particularly important to us to create an appealing, open-minded and inspiring work
environment for our employees. We firmly believe that only satisfied employees who are
empowered in accordance with their capabilities and motivation can offer a first-class customer
experience.
Our underlying holistic HR approach with customised initiatives and programmes spans the
entire employee experience life cycle – from recruitment across various career and life stages to
retirement models.
The involvement of the Management Board or the management of the various national
subsidiaries and service companies often already takes place during the development phase of
the HR concepts. This ensures a proper balance between adaptation to local needs and
standardisation throughout the group. For example, in 2020 our Guiding Principles were revised
by an international, cross-functional project group in which employees at Management Board
level and from the countries were equally involved. The objective was to describe these
principles even more clearly, to make them understandable and more tangible for all employees
and to highlight the uniqueness of the METRO culture. The expanded Management Board and
the management of the national subsidiaries were regularly involved as sounding boards and
now also act as sponsors for the reintroduction.
The Guiding Principles are the cultural glue in our HR processes for a unique employee
experience at METRO. They provide our employees with guidance for their conduct and
decisions on our way to becoming a 360° wholesaler.
Our engagement levels, which have been consistently rising since 2011 and are well above the
industry average, are proof that our employees are doing their best every day to jointly achieve
the goals of the group. With our HR initiatives, we are contributing to reinforce this motivation,
to encourage teamwork and to promote entrepreneurial thinking, open-mindedness and taking
responsibility.
Our focus is on the following areas:
Using the Guiding Principles as the foundation of our HR processes to create a consistent
employee experience
Development of our talent management and investments in our employer brand in order to fill
positions in our company with the most talented employees.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
49
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Further develop our performance management process with a clear focus on development to
promote a performance-driven culture
Increasing efficiency through conscious use of our resources and continuous improvement of
our processes
With the outbreak of Covid-19, our familiar and habitual ways of communication and working
were abruptly changed. We have used special surveys to establish dialogue with our employees
during this period and asked them which aspects of the ‘New Ways of Working’ they rate
positively and where they see potential for improvement or would like further support. The
results particularly revealed a positive assessment of the IT infrastructure and the flexibility
gained through the expansion of flexible work and time savings due to less travel. By contrast,
managing teams from a distance was mentioned as a challenge. Therefore, we initiated a project
organisation to promote the topic ‘New Ways of Working’ in 3 working blocks. These include:
‘How we work together’, ‘How we empower and communicate’ and ‘How we commute and
travel’.
This project complements the above strategic focal points with a new perspective on
collaboration and communication.
Employee attraction
In the competition to hire the best professionals and managers, our goal is to position METRO as
an attractive employer and to attract qualified, talented people to our company. Through various
activities in the field of talent acquisition, we identify and recruit suitable professionals and
managers for METRO on the talent market. This approach enables us to successfully and
sustainably fill critical roles for the business in order to strengthen the company’s own workforce
and to move the company forward by securing our human capital.
In order to attract suitable employees, METRO positions itself as an attractive employer
through target group-oriented communication on various channels.
Our main activities:
By recruiting and training junior employees for the wholesale sector, we are able to develop
managers from our own ranks. Therefore, we offer various internship, trainee and
apprenticeship programmes throughout the group.
In order to reach and attract specialised, experienced professionals and managers, we invest
in direct sourcing, talent pooling and candidate relationship management activities.
The definition of relevant and business-critical target groups and the analysis of their
potential touchpoints with METRO enable target group-oriented and focused communication
in order to position METRO as an attractive employer brand. Examples of communication
channels include career fairs (also virtual ones), social networks as well as strategic
collaborations (for example with universities).
We invest in our employer brand: METRO has again been certified as a top employer.
Altogether, 7 METRO national subsidiaries and 6 service companies received the renowned
certification by the Top Employers Institute.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
50
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Employee development and retention
Through comprehensive talent management, targeted succession planning and numerous career
development opportunities, we offer our professionals and managers attractive careers within
our company, thus creating the basis for sustainable success. Our remuneration and benefits
models also provide incentives for our employees to work performance-driven in line with our
corporate Guiding Principles.
Talent management and succession planning
Our goal is to fill vacancies internally wherever possible. At the local management level we are
committed to fill 75% of all positions from internal ranks and locally. It is important to identify
our talents as early as possible and prepare them for the challenges of future management
tasks, both nationally and internationally.
The internal replacement rate for country management teams in financial year 2019/20 was
85%. Regarding externally recruited professionals and managers, we consider it highly important
that they are not only suitable for the position to be filled but also have the potential to develop
beyond that. Therefore, we look at the second management level and measure what proportion
of externally recruited employees is included in the succession planning for the management
after 2 years. During the reporting period, this ratio was 43.4%. We also pay increased attention
to the proportion of women in management positions in our succession planning.
Managers are particularly important in this respect. Because it is their responsibility to guide
their employees through the performance process, to differentiate who needs which
development measures and which next target position fits the employee’s abilities. Individual
development measures are coordinated in an annual calibration process, which takes place both
per country for all employees and across countries for the first and second management levels.
At the same time, decisions are made to determine for which employee groups we will invest in
talent or development programmes at the local or global levels. The talent programmes for
younger employees focus on retention and promotion to team leader or initial management
positions.
Additionally, we support the creation of global communities of junior employees and experts
to share knowledge and best practices across national borders and functions. Increasing
digitalisation, particularly in the reporting year, has accelerated this trend.
In order to get a comprehensive view of employee development and adapt it to the ever-
accelerating pace of business, we have revised our current processes. The previously separate
processes of performance evaluation, succession planning and individual career development
planning will be combined. In the future, it will be carried out on a semi-annual basis. We are
placing the Guiding Principles of our company at the centre of all processes. Our goal is to guide
our employees to base their behaviour and decisions on our Guiding Principles. This creates
clarity and cultural ties to our company.
Training and development
Following the successful accreditation of the in-house training academy House of Learning by
the internationally renowned CLIP certification of the European Foundation for Management
Development (EFMD) in 2019, staff and management development was continuously further
developed in the reporting year. For example, we launched new rounds of our international
development programmes (for example Master in Store Operations, METRO Sustainable
Leadership Programme, METRO Potentials) and further optimised training portfolios by
expanding our ‘Academy Concept’. In doing so, we link individual learning solutions in a logical
chain so that they fit the various needs of the target group in line with the career planning. The
Operations Academy, for example, covers all career steps in sales, from core topics for all store
managers to competence training for store managers and an internal master’s programme.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
51
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The focus of our training programme is on employees and managers of METRO AG as well as
of the national subsidiaries.
The portfolio for the learning and development programmes offered at METRO on key topics
such as sales, field service, sourcing, finance, human resources and management has also been
digitalised to a large extent in order to facilitate virtual workshops in addition to traditional e-
learning. Particularly noteworthy in this regard are our multi-month programmes Next
Generation Finance, HR Masterclass, Assortment Management and Future Leaders.
This way, we were also able to successfully continue the international development
programmes and internal master programmes, which are important for the internal replacement
rate, in order to prepare our highly talented employees in the company for the challenges of
future management tasks in the wholesale business – even in times of lockdown – and to ensure
long-term succession planning.
The systematic development of our managers was further accelerated by the Lead & Win
management programme. The target group of this learning path comprises approximately
12,300 managers in the group. Due to the limited international travel activities caused by
Covid-19, the focus in the reporting period increasingly shifted to the local management levels of
store, floor and department managers. In addition to Lead & Win, the ‘Leading in the New
Normal’ module was developed as an online programme, which will be introduced globally at the
beginning of financial year 2020/21. It is designed to prepare employees and managers for the
challenges of the new work environment.
TRAINING COURSES AT METRO
E-learning modules,
webinars and
online courses
Seminars,
on-the-job training
Total
Number
358,015
11,779
369,794
Participants
366,485
107,542
474,027
Participant hours
212,936
498,315
711,250
TRAINING COURSES AT METRO AG
E-learning modules,
webinars and
online courses
Seminars,
on-the-job training
Total
Number
651
23
674
Participants
651
260
911
Participant hours
326
2,909
3,235
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
52
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Performance-based remuneration
METRO employees receive competitive, performance-based and fair remuneration. We have also
anchored this in our global guideline on fair working conditions and social partnership.
Our remuneration system ‘Perform & Reward’ for executives (with the exception of the
members of the Management Board)
2 comprises a monthly fixed salary as well as 1-year and
multi-year variable remuneration components whose payment amounts are essentially linked to
our company’s business performance. Additionally, the 1-year variable remuneration considers
our executives’ individual achievements, generation of additional value for customers as well as
their implementation of our Guiding Principles in their daily work. The multi-year variable
compensation components include a sustainability component and allow executives to
participate in METRO’s share price development.
Executive remuneration is complemented by additional benefits, such as an attractive pension
model, promotion of health care and a mobility budget that can be used as part of METRO’s
‘Green Car Policy’ for a car, train rides or pension provision.
Diversity and inclusion
We strongly believe that diversity and inclusion lead to better business results. In order to
establish a diverse and inclusive corporate culture and to gain better access to more talent,
METRO has developed a company-wide diversity strategy. Our goal is to create an open work
environment in which individual differences are respected, valued and promoted. We strive to
build a workforce in which each individual can develop and use their unique potential and
strengths.
Equal opportunities at work
We promote equal opportunities at work for men and women. METRO aims to further increase
the proportion of women in managerial positions. The objective is for 20% of employees on the
first management level below the Management Board and 35% of employees on the second
management level below the Management Board of METRO AG to be women by June 2022. At
the end of financial year 2019/20, a share of 15.2% of women were employed in the first
management level below the Management Board and 36.4% in the second management level
below the Management Board. Additionally, the Supervisory Board has stipulated the objective
of having at least one female member appointed to the Management Board of METRO AG by
June 2022. As of 1 November 2019, Andrea Euenheim was appointed to the Management Board
of METRO AG as the new Labour Director. METRO AG achieved the target set by the
Supervisory Board already in 2019.
Furthermore, METRO has set a voluntary target for the share of women in executive positions
at our wholesale business. By June 2022, 25% of managerial positions on levels 1–3 (including
store managers) of METRO locations worldwide are to be filled by women. At the end of
financial year 2019/20, the proportion of women on management levels 1–3 (including store
managers) was 24.0%.
METRO has established one contact person for diversity and inclusion in each METRO
(national) subsidiary in 2020. The diversity and inclusion strategy revised in 2020 is now being
jointly implemented and monitored with the help of key performance indicators. As part of the
revision of the strategy and through the positive development with regard to achieving the
target of increasing the proportion of women in management positions at METRO AG and
METRO’s wholesale business, we have shortened the target achievement date of the current
gender targets set by the Management Board on 26 July 2017 to 30 September 2020 (originally:
30 June 2022) and set new targets for September 2025. The objective is for 25% of employees
on the first management level below the Management Board and 40% of employees on the
2 For more information about the remuneration of the Management Board, see chapter 6 remuneration report
page 104 .
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
53
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

second management level below the Management Board of METRO AG to be women by
September 2025. Furthermore, METRO has again set a voluntary target for the proportion of
women in executive positions at our wholesale business. According to this, the share of women
in management positions at levels 1 to 3 (including store managers) of METRO locations
worldwide is to be 30% by September 2025.
To support these goals, we launched the Women Leadership Programme (WLP) in 2018. It
supports the top 150 women within METRO with customised training measures. In addition, they
are offered the opportunity to contribute to solving relevant business challenges and thus to
make an impact and gain international visibility within METRO.
METRO is actively participating in various initiatives, such as the Diversity Charter, the LEAD
Network and Prout at Work. Beyond that, various employee networks have been established to
represent the issue of diversity and inclusion within the workforce and externally on their own
initiative.
Occupational safety and health management
As a leading sustainable company, we are committed to ensuring a safe and healthy work
environment for our employees, suppliers and customers. This commitment has motivated us to
develop a new occupational safety and health (OSH) strategy, which provides transparency for
improvement opportunities and highlights key OSH issues. As a first step, we introduced a new
organisational structure at the company level to support our OSH activities.
Occupational safety
For METRO, we have initiated a group-wide Operational Safety Management System (OSMS),
which was adopted by the Management Board in September 2020. It structures the safety
environment in accordance with the requirements of ISO 45001 ‘Occupational health and safety
management systems’. The OSMS manages and controls the interlinked processes of the various
business activities so that METRO can fulfil its security relevant obligations as an operator.
Starting in financial year 2020/21, the system will apply accordingly throughout the group.
Occupational safety and health reporting
Already in February 2020, the OSH Reporting Manual was launched as a pilot project, which will
be transferred to all units as part of the implementation of the OSMS. Currently, the vast
majority of METRO countries report regularly using the new format with an improved
methodology for recording and calculating work-related injuries.
KPIs for occupational safety and health
In the reporting year, we expanded our OSH performance and are well on the way to a robust
safety culture. With various initiatives, we are generally working to increase awareness among
employees that each individual bears responsibility for occupational safety. Moreover, we are
continuing to work on a solid group-wide reporting system. The Lost Time Injury Frequency Rate
(LTIFR), that is, the total number of lost-time incidents (LTIs) per 1 million working hours, for the
German METRO companies in financial year 2019/20 was 4.27
3.
We will continue our commitment to improving occupational safety and will measure the
results of our safety measures using proactive and reactive key figures. This includes measures
to actively involve employees in management through store visits and participation in audits,
strong employee involvement in our hazard identification programme, robust incident and near-
accident reporting, training to encourage behavioural change, an audit programme and self-
monitoring programmes.
3 Key figure not comparable with the disclosure in the 2018/19 annual report due to the change in the reporting system
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
54
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Occupational safety in times of Covid-19
The global Covid-19 pandemic has also affected METRO. Extensive organisational measures were
implemented to ensure the safety of all employees. They include optimisation of the flexible
work offer, travel restrictions as well as safety and hygiene measures in the headquarters, stores
and warehouse locations of the METRO companies. Transparent communication regarding
regulations and changes in the Covid-19 situation kept the incidence of infections at a low level
throughout the company.
Fair working conditions and social partnership
Our principles on fair working conditions and social partnership are a crucial component in
shaping our employer–employee relations. These principles are based on the UN Guiding
Principles on Business and Human Rights, the core labour standards of the International Labour
Organization (ILO) as well as the 3 main principles of the Resolution on Forced Labour by the
Consumer Goods Forum. Accordingly, these principles contain the right to free unionisation and
collective agreements, structured working hours and wages, occupational safety and health
management as well as the prohibition of forced labour, child labour and discrimination.
We ensure that our sales lines and their national subsidiaries comply with the principles on
fair working conditions by reviewing our regional headquarters, stores and logistics centres. In
order to improve the working conditions in the national subsidiaries, corrective action plans are
defined with the local colleagues, in which substantive measures with clear responsibilities and
timetables are defined and executed. The focus is on entering into a dialogue with the
companies and promoting the knowledge sharing in order to learn from one another, not only
with regard to working conditions but also in terms of dialogue with employee representatives.
Since financial year 2016/17, extensive reviews on compliance with the METRO principles have
been performed on-site in 15 national subsidiaries (Pakistan, Bulgaria, Japan, Hungary, Italy,
Serbia, India, Slovakia, Moldova, Spain, Russia, Croatia, Kazakhstan, Portugal and France). Many
areas returned satisfactory results, while others showed potential for improvement, in particular
in the area of occupational safety. The on-site reviews were followed by comprehensive training
on the METRO principles on fair working conditions. No on-site audits were carried out during
the reporting period.
Financial year 2019/20 was dominated by Covid-19, which is why we changed our audit
procedure in the METRO companies and conducted a survey on the principles from May to July.
Afterwards, limited audit procedures were carried out at 5 selected METRO companies. The goal
was to assess the current implementation status of the principles on fair working conditions and
social partnership (FWC & SP) in key units and to make recommendations for improving the
FWC & SP process.
On a national and international level, METRO maintains constant communication with works
councils and unions and encourages management to engage in constructive and mutually
informative dialogue with our employees and their representatives. This dialogue results in
several collective employment agreements at the level of business units, countries or individual
stores – depending on local laws and customary practices. There is also the METRO Euro Forum
(MEF), our European Works Council. This corporate body is notified and consulted in case of
cross-border/transnational changes within the EU area. The MEF meets regularly. Plenary
meetings are held once a year with a training session for all employee representatives of the
METRO Euro Forum and up to 3 times a year with the steering committee of the MEF and
management representatives. Also, in a periodic social dialogue with the international trade
union organisation UNI Global at the global level, discussions include the commitment to fair
working conditions and social partnership.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
55
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Development of employee numbers
The tables below show the year-on-year development of employee numbers as an average for
the 4 quarters of the financial year and as of the closing date of 30 September, both based on
full-time equivalents:
DEVELOPMENT OF EMPLOYEE NUMBERS BY SEGMENT
Full-time equivalents, average
2018/19
2019/20
METRO
93,133
89,359
METRO Germany
11,770
11,580
METRO Western Europe (excl. Germany)
24,290
23,483
METRO Russia
13,623
11,583
METRO Eastern Europe (excl. Russia)
27,993
27,681
METRO Asia
7,585
7,182
Others
7,017
7,054
METRO AG
855
796
DEVELOPMENT OF EMPLOYEE NUMBERS BY SEGMENT
Full-time equivalents as of the closing date of 30/9
2019
2020
METRO
90,883
88,306
METRO Germany
11,760
11,396
METRO Western Europe (excl. Germany)
24,044
23,594
METRO Russia
12,288
11,280
METRO Eastern Europe (excl. Russia)
27,589
27,484
METRO Asia
7,298
7,079
Others
7,067
6,705
METRO AG
837
768
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
56
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Social matters
Respect for human rights
The principles of METRO include respect of all human rights, as set out in the United Nations’
Universal Declaration of Human Rights, the International Bill of Human Rights, the OECD
Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human
Rights and the Declaration on Fundamental Principles and Rights at Work of the International
Labour Organization (ILO). This is manifested in our Policy for Human Rights, which applies to
our own employees and to our business partners within our value chain
4. Our goal is to identify
and prevent violations of fundamental human rights in our own business operations and in the
supply chain. We also strive to systematically improve working conditions in our supply chain.
Respect for similar values is also important to us on the part of our business partners. We
formalised this in the METRO Code of Conduct for business partners. It includes compliance with
human rights according to the International Bill of Human Rights, the OECD Guidelines for
Multinational Enterprises, UN and ILO standards, occupational and social matters based on the
principles of the International Labour Organization’s (ILO) 4 core labour standards, provisions
for environmental protection and corporate ethics, in particular anti-corruption and anti-bribery,
antitrust and competition laws as well as data protection. Furthermore, all of our own-brand
contracts and framework contracts for brand suppliers contain a social standards clause that
gives us legal means to enforce our requirements.
In case of violations of our basic human rights principles, our employees can contact their
supervisors or the company’s compliance officers. Using a tool that is publicly accessible via the
METRO compliance page, every internal and external individual, including stakeholders of our
suppliers, can report incidents. It is important for us that our suppliers also provide such a
reporting system. The reported incidents will be promptly investigated and processed by our
experts to take appropriate action, if necessary. We are also committed to working with our
suppliers and within the group to remedy impacts, utilising joint initiatives and collaborating
with stakeholders, and not obstructing access to other legal remedies.
4 For the METRO AG holding company, the aspect of human rights in the supply chain is not essential because of its business orientation, but rather only in relation
to its own employees.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
57
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Global labour and social standards in the supply chain and supplier development
In order to contribute to ensuring socially acceptable working conditions within our
procurement channels and to prevent potential infringements, the application of social standard
systems is a key part of the purchasing process in addition to the contractual manifestation of
our requirements. We will require our producers to be audited in accordance with the supply
chain management standard set out by the Amfori Business Social Compliance Initiative (Amfori
BSCI), the Sedex audit according to SMETA or an equivalent social standards system. This
applies to all producers in defined risk countries (based on the Amfori BSCI assessment) in
which METRO SOURCING International (MSI) and METRO Food Sourcing (MFS) have imported
goods manufactured. It also applies to all other producers who manufacture own brands or own
imports for our sales lines. This risk assessment did not have to be adjusted in connection with
the Covid-19 pandemic either, as it is generally applicable. For many years now, we have been
working on the basis of a corresponding process for our non-food producers
5. Since 1 June 2019,
the same process was established analogously for all food and near-food producers in the own-
brand sector. The national subsidiaries were trained in this respect and will be gradually
integrated into the process over the next 1–2 years. Due to the disruptive circumstances of the
Covid-19 pandemic, especially for supply chain management, only METRO Food Sourcing has
fully implemented the process so far. The national subsidiaries in Turkey, Germany, India and
Pakistan as well as our purchasing companies Valencia Trading Office (VTO) and Rotterdam
Trading Office (RTO) are still in the process of introducing the process.
As of 30 September 2020, 675 of 863 active own-brand non-food producers and 60 of 109
corresponding food/near-food producers had undergone the audit process. Within this group,
99% (665) of non-food producers and 100% (60) of food/near-food producers have passed the
audit. Effective 1 January 2019, non-food producers who fail the audit can only be commissioned
as METRO contracting parties if they achieve an acceptable audit result. In other words, they
have to receive an A, B or C for the Amfori BSCI assessment or an audit that is acknowledged as
equivalent
6. Until further notice, all food/near-food suppliers with Amfori BSCI D (and in
exceptional cases also E) audit results (and corresponding equivalents of other standards
recognised by METRO) can also be commissioned by METRO. This procedure realistically reflects
the challenging way of re-integrating suppliers into the process and gradually working towards
ensuring socially acceptable (working) conditions.
The verification of compliance with our requirements is performed via an internal IT-based
process management database, which provides an overview of the portfolio management of the
affected suppliers and the associated producers. The database is also used to monitor
compliance with contractual agreements during the initiation and suspension of business
relationships. The necessary documents are checked before the conclusion of a contract.
Misconduct with regard to the so-called deal breakers specified by METRO in the course of
ongoing business relations will trigger suspension of the supplier. Deal breakers include specific
findings in the areas of child labour, forced labour, occupational safety hazards with regard to
fire safety and ethical behaviour. If misconduct is discovered at suppliers and their producers
concerning one of these areas, they are required by METRO to develop short-term and long-
term solutions to remedy the deal breaker issue. New orders or follow-up orders are suspended
until the findings in the deal breaker process have been resolved.
5 This includes merchandise producers (non-food own-brand products and own non-food imports) in high-risk countries that carry out the final value-creating
production step, for example produce the final item of clothing.
6 A METRO company was granted an exemption in August 2020 for the (post-) coronavirus period to continue to use individual producers with D audit results if
their D audit results are attributable to coronavirus-based failure. These producers will be granted a 6-month grace period until they can demonstrate a follow-up
audit result of A through C.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
58
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Supplier development was also identified as a significant topic for the business activities of
our operational business
7. By training small and medium-sized suppliers on aspects of food
safety, hygiene and implementation of fair working conditions, we support them in meeting
relevant standards and thus help them successfully market their goods. The importance of this
collaboration became particularly apparent with the outbreak of the Covid-19 pandemic, when it
was used to compensate for the largely cancelled Amfori BSCI and Sedex audits with
intermediate measures. With a questionnaire, instructions and discussions we were able to offer
our producers assistance and thus fulfil our due diligence obligation to emphasise the respect of
human rights even without audits. Special attention was paid to stricter hygiene rules and
potential human rights violations as a consequence of the sometimes severe economic losses,
such as the risk of unregulated overtime.
In order to contribute to the improvement of the social requirements in our production plants
and thus to further increase the proportion of valid social audits, MSI, MFS and METRO Turkey
work together with our local producers and support them with training courses that serve to
teach understanding and compliance with the social standards. Since the start of the project in
financial year 2017/18, the national subsidiaries in Turkey, Pakistan, Ukraine and Bulgaria have
completed a training course on forced labour for employees in key positions, which is being
conducted together with Amfori BSCI. Spain, Serbia, Croatia and Myanmar followed suit in
financial year 2019/20. Successively, all METRO national subsidiaries will complete this training.
The original target to achieve this by 30 September 2020 could not be kept due to process-
related delays and circumstances caused by Covid-19.
With regard to the description of risks associated with non-compliance of standards by our suppliers, we refer to the
section on ‘Supplier and products risks’ in chapter 5 Opportunity and risk report
page 89 . We did not identify any
significant risks.
Combating corruption and bribery
The Management Board of METRO AG is committed to complying with applicable laws, rules and
regulations. METRO employs a group-wide compliance management system (CMS) to ensure
compliance with laws and a self-imposed code of conduct, including key risks such as combating
corruption and bribery. The aim of the CMS is to systematically and permanently prevent, detect
and sanction violations within the company and to take measures to achieve future compliance.
The METRO Business Principles are at the heart of our compliance initiatives and are firmly
anchored throughout the group particularly by ongoing training measures. The CMS is based on
the METRO Business Principles. Business Principle no. 2, for example, explicitly prohibits
corruption and bribery in dealing with business partners and authorities. When setting up the
CMS, METRO was guided by the basic elements of such a system described in the IDW PS 980
auditing standard (principles for the proper performance of reasonable assurance engagements
relating to compliance management systems). It operationalises the 7 CMS elements on a risk
basis applying a wealth of organisational, structural, procedural and individual measures for all
major group companies.
7 Due to the company alignment, the aspect of supplier development is not significant for the holding company, METRO AG.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
59
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The Management Board of METRO AG and the management of the relevant METRO group
companies demonstrate proper conduct. In addition to informal role model behaviour, frequent
‘tone from the top’ messages are foreseen in the organisations. New members of management
committees and other executives undergo compliance onboarding at the beginning of their job.
Indications of compliance incidents are investigated in a clearly defined and objective process. It
involves all relevant functions including compliance, legal, auditing and HR.
The defined goal of the CMS is additionally implemented in the organisation via human
resources management tools. As part of the regular performance reviews, compliance aspects
from the METRO Guiding Principles are included in the evaluation.
Generally, the CMS compliance risks control is risk-based. As part of regular risk audits, for
example in the form of workshops with relevant stakeholders in the respective units, the
compliance risks are continuously checked for completeness and relevance. In addition, each
relevant group unit is classified in 1 of 3 risk classes. External and internal indicators are used for
this purpose, such as Transparency International’s indices, employee turnover rates and
compliance maturity in past periods.
A compliance programme with different intensities is defined for each risk class. It is based on
the guidelines developed for each significant compliance risk and adopted by the Management
Board. When it comes to combating corruption and bribery, this is one guideline for dealing with
business partners, including guidelines for a business partner assessment, and dealing with
public officials.
The CMS is implemented by the compliance organisation. A compliance officer has been
appointed to each relevant METRO group company for this purpose, who reports directly to the
METRO AG Corporate Compliance department as part of Corporate Legal Affairs & Compliance.
Corporate Compliance keeps the concept and content of the CMS on a risk-appropriate level
and provides the concepts and tools for implementation in the METRO group companies of each
CMS element. The disciplinary and technical leadership of the compliance officers takes place
via institutionalised reporting dates as well as target agreements. The compliance officers
regularly report directly to the local management in their units. Moreover, identified key
compliance risks are addressed in the context of the other GRC subsystems and integrated into
the systems there.
An IT-based whistle-blower system provides employees and external third parties with an
opportunity to provide information (under the protection of anonymity, if preferred) on
regulatory infringements within the company. All reported regulatory infringements, irrespective
of whether the measures for ensuring compliance with these rules fall within the area of
responsibility of the compliance organisation, are investigated and – where appropriate and
necessary – sanctioned systematically by the CMS, which relies on the compliance incident
handling system operated by the compliance organisation.
Compliance topics and measures are systematically communicated to the workforce through
a variety of channels in the company in a targeted manner. A core tool is compulsory
compliance training, which is either carried out in person or through e-training. In financial year
2019/20, compliance training was executed in all relevant METRO group companies. The
selection of relevant employee groups is risk-based. Practical content is taught in the training
courses. A variety of other communication formats are used in addition to training, such as
compliance talks, posters, flyers, intranet, department visits, function and leadership conferences
as well as personnel development events.
The METRO companies collaborate with a large number of external business partners. Before
entering into specific contractual relationships, a risk-based examination is performed to
determine whether there are reasons from a compliance perspective not to engage a third party.
Certain groups of business partners, such as consultants with contact to public officials as part
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
60
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

of the order fulfilment, require an in-depth audit that is appropriate for the risk. To this end, the
existing process has been digitalised. The group-wide roll-out of the digital tool for compliance
verification of business partners, which began in the last financial year, is almost complete. The
goal is to have it fully operational for relevant METRO group companies in the coming financial
year. The audit approach is risk-based in various degrees of intensity, for example in the form of
self-disclosure, but also by examining external databases with relevant risk information.
Proper implementation of the defined risk-based measures for the implementation of the
CMS is ensured through frequent KPI reporting for each relevant METRO group company.
Through KPI reporting, a compliance maturity level is determined annually, which in turn is
incorporated into risk classification and definition of measures. The efficacy of our internal
compliance controls is regularly assessed by our Internal Audit unit. As part of METRO’S GRC
approach, the Group Audit department evaluates the effectiveness of the group-wide CMS every
year. This assessment is presented to the Management Board and the Supervisory Board as part
of the regular reporting on compliance issues.
Overall, the mentioned control and monitoring measures demonstrate an appropriate level of
compliance maturity.
Customers
Customer satisfaction and innovation management
METRO focuses on identifying and addressing customers’ current and future challenges at an
early stage in a constantly changing environment. It is thereby elevating the customer
relationship from a transactional merchandise trade to a sustainable and holistic partnership.
Customer focus and customer satisfaction are central elements of the corporate strategy. In
order to continuously measure and improve customer satisfaction, METRO has implemented the
Net Promoter Score throughout 24 METRO countries. Since its introduction, METRO has
received about 3.7 million customer feedbacks. Besides the quantitative measurement of the
satisfaction values, suggestions from customers can be systematically recorded and evaluated.
Among other things, this is done through analysis tools with regard to, for example, product
range availability or pricing. Subsequently, measures are implemented and tracked at country
level to continuously optimise customer satisfaction.
An important aspect of customer satisfaction with regard to the Covid-19 pandemic is the
protection of customer health. In order to ensure the best possible protection, METRO has
issued recommendations on preventive measures, for example, by continuing to enforce safe
distancing, mandatory mask wearing and by installing disinfectant dispensers. Corresponding
measures were implemented in the countries on their own responsibility. In addition, best
practices were exchanged between the national subsidiaries and product ranges were expanded
to support our customers in implementing protective measures in their operations.
With its 2 companies, Hospitality Digital and METRO-NOM, METRO offers professional
services and digital solutions that support professional customers in successfully conducting
their business and strengthen their competitiveness.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
61
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Hospitality Digital develops customer- and user-oriented digital solutions specifically
designed for the hospitality industry. After about 2 years, METRO has supported more than
200,000 restaurateurs in 15 countries with digital solutions through its online platform DISH
(Digital Innovations and Solutions for Hospitality). The provided tools facilitate operating
processes, ensure visibility on the internet or support the restaurateur in evaluating key business
figures.
Protection of personal data
The protection of personal data of customers, employees and business partners is extremely
important to METRO. This is particularly true considering the fact that corporate processes are
increasingly being digitalised, requiring data collection, processing and storage.
METRO always undertakes to comply with the respective data protection laws of the
countries in which METRO is active. In addition, METRO has a group-wide privacy policy that
contains uniform standards for the handling of personal data and is binding for all group
companies. In addition, national laws apply. For companies operating in Europe, this includes, in
particular, provisions for dealing with the General Data Protection Regulation (GDPR).
METRO also has a group-wide data protection organisation, consisting of local data
protection officers and data privacy managers responsible for corporate data protection. It
facilitates the pursuit of overarching and national data protection and digitalisation
developments in order to continue to meet the statutory data protection requirements across
the group.
With the help of the structures created by the data protection organisation, METRO has set
up a system for continuously and comprehensively monitoring compliance with data protection
regulations within the group. The review covers internal requirements and provisions from laws
and other legally binding provisions on data protection.
The concept of the METRO group’s data protection management system was also audited
and certified by an external body in accordance with the international auditing standard IDW PS
980. There were no objections.
C O M B I N E D
M A N A G E M E N T  R E P O R T
2  P R I N C I P L E S  O F  T H E  G R O U P
62
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

3 ECONOMIC REPORT
3.1 Macroeconomic and sector-specific parameters
The following description must be considered explicitly in the context of the ongoing Covid-19
pandemic. The underlying data were collected up to the closing date of 30 September 2020.
Global economy
At the beginning of financial year 2019/20, economic development continued at the moderate
growth level of the previous year. Starting in China and followed by other countries in Asia and
Europe as well as North and South America, the rapid spread of Covid-19 led to comprehensive
measures by the governments of the individual countries to contain the virus. These measures
varied from country to country and restricted both social life and the economy – in some cases
considerably.
From an economic perspective, this translated into a combination of immediate supply and
demand shocks that led to a global recession. This is reflected in a decline in global real
economic output of −2.9% in financial year 2019/20 compared to financial year 2018/19.
Especially in Q3 2019/20, where many countries in the METRO portfolio were severely affected
by the Covid-19 outbreak, the decline in GDP compared to the same quarter of the previous year
was particularly high at −6.6%.
Individual economic sectors and industries were affected by the measures to varying degrees.
While some sectors like civil aviation, tourism and hospitality as well as sports and cultural
events suffered to some extent even drastic sales losses due to the restrictions imposed by the
authorities, a few other sectors such as food retail, pharmaceuticals, IT and manufacturers of
hygiene products were able to benefit from the situation.
Compared to previous recessions, the measures imposed to contain the pandemic had an
immediate impact on the labour market. However, many countries have so far been able to
mitigate the effects through short-time work programmes. In addition, China, the USA and
Europe launched extensive and very large-scale economic stimulus programmes to cushion the
economic impact and revive the economy. The gradual easing of restrictions on social and
economic life also contributed to it. These efforts led to a slight GDP growth in Q4 2019/20
compared to the previous quarter.
However, as of the end of financial year 2019/20, the pandemic has not yet been fully
overcome, especially in the largest economies – with the situation in China still being unclear.
Due to the economy’s high dependence on the pandemic situation, it is unclear whether the first
positive economic trends in Q4 2019/20 will already lead to a lasting recovery.
The effects of the pandemic were also visible in the food wholesale sector. This was mainly
due to the massive and immediate slump in sales in the HoReCa customer group. That is
particularly true in countries where the hospitality industry and tourism traditionally account for
a higher proportion of economic output. Food wholesalers with a broad customer portfolio were
able to cushion these negative effects to some extent through sales to other customer groups,
for example Traders, or by opening up for end consumers for a short period. In the last quarter
of financial year 2019/20, sales in the HoReCa sector as well as in domestic tourism increased in
many countries.
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
63
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Germany
In the course of financial year 2019/20, the German economy slid into a deep recession due to
the Covid-19 pandemic and contracted by −4.7% compared to financial year 2018/19. Q3 2019/20
was the main contributor to this development, with a decline in growth of −11.3% compared to
the same quarter in the previous year. In Germany, early far-reaching preventive measures meant
that the economic and social restrictions were shorter and less extensive than in other countries.
Nevertheless, the measures affected almost all economic sectors, in particular hospitality and
recreational services, civil aviation and tourism; meanwhile, domestic tourism already showed
the first signs of recovery in the last quarter of financial year 2019/20. Exports, industrial
production and private consumption slumped significantly in the course of the reporting year.
Conversely, food expenditures increased significantly. Inflation stagnated in the course of the
year, partly due to the reduction in value added tax starting on 1 July 2020.
To cushion the impact of the crisis, the German government adopted comprehensive
assistance programmes for the entire economy, such as direct Covid-19 aid and an economic
stimulus package worth over €200 billion, temporarily suspended the obligation to file for
insolvency and extended the option of short-time work for companies. The last 2 measures were
intended to definitely curb the otherwise expected increase in insolvency filings and
unemployment. By May, the number of employees on short-time work was just under 20% of the
workforce, well above the level of the financial crisis in 2008.
Although they are still of economic relevance, the trade conflicts with the USA and the Brexit
negotiations have moved into the background of public perception.
After the positive growth at the beginning of financial year 2019/20, food wholesalers were
ultimately also affected by the pandemic and the adopted countermeasures, which can be
showcased by the sales achieved with these customer groups. The HoReCa customer group
recorded massive sales losses from around March 2020, which had a direct impact on food
wholesalers. Easing of countermeasures in connection with the hospitality industry led to a
recovery in sales since Q3 2019/20. However, the comparable level of the previous year was not
reached. By contrast, the Traders customer group, as part of the food retail sector, was able to
benefit from the increased demand for food.
Western Europe
Covid-19 and the government countermeasures also had a massive impact on social and
economic development in the other Western European countries. All Western European METRO
countries recorded declines in economic output compared to financial year 2018/19: Spain
(−8.9%), France (−8.1%) and Italy (−8.0%). So far, economic output for financial year 2019/20 is
expected to decline by approximately −7.4% in Western Europe compared to the previous year.
In addition to national economic stimulus packages, the €750 billion package adopted by the
EU in July 2020 is expected to help cushion the economic impact of Covid-19 and stimulate the
economy. Furthermore, the countries launched their own programmes to support the labour
market, for example through wage subsidies or short-time work. As a result, the negative effects
of the crisis have not yet had a serious impact on the labour markets. However, in France, for
example, more than 30% of the total workforce was already on short-time work by May.
In Western Europe, several countries in the METRO portfolio are strongly focused on the
HoReCa customer group, especially countries with significant tourism activities such as Spain,
Portugal, France and Italy. Since these countries were severely affected by Covid-19 and the
associated social restrictions, this also had a direct impact on the HoReCa sector, which had
previously been developing positively. Tourism came to a temporary halt and sales in the
hospitality industry dropped sharply. However, from May onwards there was a positive
development in domestic tourism, possibly triggered by the perceived risks and restrictions
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
64
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

associated with travelling abroad. A similar trend was seen in the hospitality sector. This
development continued until July (end of the available statistical reporting).
The food retail sector recorded significant growth since the outbreak of the pandemic – with
especially high growth rates in March. This trend also likely benefited our Traders customer
group.
The described development of the HoReCa and Traders customer groups also had
consequences for the food wholesale sector; however, the specific impact depends on the
customer group structure of the respective wholesaler.
Russia
Following a positive development in the first half of the financial year, the Russian economy
contracted by −2.9% in financial year 2019/20 compared to the previous year. From March
onwards, both imports and exports dropped sharply. The unemployment rate increased
moderately, and private consumption declined significantly from Q3 2019/20 onwards. To
support domestic demand, the Russian government ordered full wage compensation during the
self-isolation period, which was imposed by the government to contain the Covid-19 pandemic
and lasted several weeks. The measure to support household incomes is part of a stimulus
package amounting to around 1.5% of the GDP. As a result of the partial easing of the Covid-19
measures, private consumption, a key driver of future economic growth, started developing in a
positive direction again.
The impact of the economic development on the Traders sector was mixed. The traditional
and independent small grocery stores recorded a decline in sales that was roughly on a par with
previous years. By contrast, the modern small food retailers were able to benefit during the
phase of restrictions as well as from the recent positive development of private consumption.
The modern small-format grocery shops also include those operated by our franchisees under
the Fasol brand. In the past financial year, we expanded the Fasol network considerably again.
Overall, METRO performed better than the market in the Traders segment. Similar to the other
regions, the HoReCa sector was much more restricted due to the measures imposed to contain
the pandemic and correspondingly recorded lower sales.
Eastern Europe
While the remaining Eastern European countries had recorded growth above that of their
Western European neighbours in previous years, their economic development in 2019/20
followed the global trend with a decline of −2.1%. Here too, the major factor was the spread of
the pandemic and the corresponding government countermeasures. However, some countries
such as Turkey, Croatia, the Czech Republic and Poland already recorded positive growth in the
last quarter of the financial year compared to Q3 2019/20, which could indicate a trend reversal.
In the light of the pandemic, the labour market across all countries has so far only recorded a
slight increase in unemployment.
As in the other METRO regions, private consumption in Eastern Europe also collapsed during
the reporting year. This applies equally to imports and exports, although they picked up again in
Q4 2019/20 compared to Q3 2019/20. Overall, however, the level is significantly lower than in
the same period of the previous year.
The exchange rate against the euro remained stable for the most part, while the Turkish lira
again recorded a marked depreciation against the euro and the US dollar.
The HoReCa and Traders sectors followed a similar pattern as in Western Europe. Tourism-
oriented countries such as Croatia and Turkey recorded a clearly negative development in the
sales figures of the hospitality industry at the beginning of the pandemic; however, they
bounced back with a more positive development in the last quarter of the financial year. The
food retailers were also able to report positive sales growth in Eastern Europe.
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
65
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Asia
The impact of the pandemic is also being felt in the emerging markets of Asia, most notably in
China, where Covid-19 first appeared. After a strong Q1 2019/20, private consumption and
economic growth in China dropped sharply during Q2 2019/20, affecting other countries due to
China’s important position in the global supply chain. However, a strong economic recovery
started in Q3 2019/20 and continued in Q4 2019/20. This recovery had a significant impact on
the overall GDP development in the Asian region.
With a slight delay, Covid-19 ultimately also appeared in other Asian countries. India in
particular has been severely affected. By now India reports the second-most infections globally,
which is also reflected in a very significant decline in economic output and a sharp rise in
unemployment in Q3 and Q4 2019/20. These developments had a corresponding impact on
private consumption.
DEVELOPMENT OF GROSS DOMESTIC PRODUCT IN IMPORTANT WORLD REGIONS AND GERMANY
Year-on-year change in %
2018/191
2019/202
World
2.6
−2.9
Germany
0.6
−4.7
Western Europe (excl. Germany)
1.4
−7.4
Russia
1.5
−2.9
Eastern Europe (excl. Russia)
1.6
−2.1
Asia
3.8
−1.2
Real GDP growth based on USD and adjusted for purchasing power – except for ‘World’. Source: Oxford Economics.
1 The previous year’s figures may slightly deviate from the Annual Report 2018/19, since retrospective corrections are being made by the data provider and the conversion
from calendar year to financial year h as taken place.
2 Outlook.
3.2 Asset, financial and earnings position
Overall statement by the Management Board of METRO AG on the business development and
situation of METRO
At the beginning of financial year 2019/20, the positive economic development of the previous
year continued. Until the end of February 2020, the operational business developed clearly
positively and seemed largely unaffected by the Covid-19 pandemic. Then the rapid spread of
Covid-19 led to comprehensive government measures and restrictions in all countries where
METRO operates in an effort to contain the virus. These measures varied from country to
country, but all of them had in common that they restricted social life and the economy to a
sometimes considerable extent. Therefore, just like the hospitality industry and hotel sector,
METRO’s business development was strongly impacted by the effects of the Covid-19 pandemic,
especially in Q3 2019/20. In Q4 2019/20, the operational business has already almost reached
the level of the previous year, in part supported by significant market share gains in the core
business and a clearly positive development in Russia and Eastern Europe (excluding Russia).
With the exception of Q3 2019/20, which was impacted by Covid-19, the Management Board
looks back on an overall stable and robust financial year, in which the transformation to a pure
wholesaler was completed. In a challenging financial year, the holistic wholesale approach, the
flexible channel programme with delivery and store-based business and the close cooperation
with customers proved to be very crisis-resistant. METRO has emerged very satisfactorily from
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
66
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

the first phase of the Covid-19 pandemic compared to the competition and managed to gain
market share.
Sales and EBITDA developed in line with expectations at the upper end of the adjusted
outlook. Accordingly, the Management Board is overall satisfied with the development of the
business considering the current circumstances. The reported Earnings per Share (EPS) from
continuing and discontinued operations amounts to €1.27 (2018/19: €0.89) and provides the
basis for the dividend proposal. Accordingly, an attractive dividend will also be proposed to
shareholders for financial year 2019/20.
Financial and asset position
Financial management
Principles and objectives of financial activities
METRO AG centrally performs the management of the group’s financing activities. It ensures
solvency of the group at all times, reduces financial risks where economically feasible and grants
loans to group companies. The objective is to cover the financing requirements of the group
companies cost-effectively and in sufficient amounts via the international banking and capital
markets. The financial activities are based on a financial budget for the group, which covers all
relevant companies. The selection of financial products is generally based on the maturities of
the underlying transactions.
Through intra-group cash pooling, financial resources can be allocated as needed by group
companies with financing needs using the liquidity surpluses of other group companies. This
reduces the financing volume and thus the interest expense.
METRO’s current long-term investment grade rating of BBB- and short-term rating of A-3
(Standard & Poor’s) ensure access to the international financial and capital markets, which is
particularly utilised within the scope of the Euro Commercial Paper Programme and the ongoing
capital market bond programme as needed. Frequent dialogue with credit investors and analysts
takes place.
The following principles apply to all group-wide financial activities:
Central management of financing activities by METRO AG
External presentation of METRO as a single financial unit
Cost-effective capital procurement by using banking and capital markets
Protection of our financial scope of action by limiting the volume of transactions with
individual banks
Segregation of duties for initiation, controlling and management of financial transactions
Centralised financial risk management
For more information about the risks stemming from financial instruments and hedging relationships, see the notes
to the consolidated financial statements in no. 44 – management of financial risks
page 242 .
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
67
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Rating
METRO AG has instructed Standard & Poor’s to assess and monitor its credit rating, which is
currently presented as follows:
Category
2020
Long-term
BBB−
Short-term
A-3
Outlook
negative
Financing measures
The company’s medium-term and long-term financing needs are covered by a bond issuance
programme with a maximum volume of €5 billion. On 20 January 2020, a due bond of
€125 million with a coupon of 4.05% was repaid on time. As of 30 September 2020, the utilised
bond issuance programme amounted to a total of €1,776 million .
Short-term financing requirements are covered through the Euro Commercial Paper
Programme with a maximum volume of €2 billion. On average, the programme was used at
€575 million during the reporting period. As of 30 September 2020, the utilisation amounted to
€295 million (30/9/2019: €387 million).
Bilateral credit facilities totalling €150 million were drawn down as of 30 September 2020. As
a cash reserve, 2 syndicated credit facilities of €1,750 million and additional multi-year bilateral
credit facilities of €250 million were concluded.
In financial year 2019/20, a syndicated credit facility of €900 million as well as temporary
multi-year bilateral credit facilities of €200 million were drawn down. The syndicated credit
facility and the multi-year bilateral credit facilities were utilised because liquidity on the money
market was limited in the wake of the Covid-19 pandemic and short-term refinancing via
commercial papers was not ensured. All drawn credit facilities were repaid prior to maturity.
For more information about financing programmes and credit facilities, see the notes to the consolidated financial
statements in no. 36 – financial liabilities
page 220 .
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
68
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

UNDRAWN CREDIT FACILITIES BY METRO
30/9/2019
30/9/2020
Remaining term
Remaining term
€ million
Total
up to
1 year
over
1 year
Total
up to
1 year
over
1 year
Bilateral credit facilities
609
279
330
400
86
314
Utilisation
−359
−279
−80
−150
−86
−64
Undrawn bilateral credit facilities
250
0
250
250
0
250
Syndicated credit facilities
1,750
0
1,750
1,750
900
850
Utilisation
0
0
0
0
0
0
Undrawn syndicated credit facilities
1,750
0
1,750
1,750
900
850
Total credit facilities
2,359
279
2,080
2,150
986
1,164
Total utilisation
−359
−279
−80
−150
−86
−64
Total undrawn credit facilities
2,000
0
2,000
2,000
900
1,100
Investments/divestments
In financial year 2019/20, METRO invested €627 million, considerably less than the investment
amount in the previous year. The decline in investments is partly due to more selective
expansion activity. With 1 new store opening in financial year 2019/20, it declined compared to
the previous year (2018/19: 3 new store openings). While 1 new METRO store was opened in
Russia as well as 2 smaller and therefore more cost-effective formats were added in Turkey and
Croatia in the previous financial year, 1 smaller store format was opened in Ukraine in the current
financial year. In financial year 2019/20 there was 1 closure in Russia.
Furthermore, apart from isolated, country-specific Covid-19-related savings, the decline in
capital expenditure is mainly due to sale and leaseback projects in the previous year, especially
in the Eastern European region. Further progress was made in improving capital efficiency in the
areas of modernisation, concept conversions and in the delivery business.
The investment focus in financial year 2019/20 still included IT and digitalisation. Here, too,
funds were saved compared to the previous year as a result of a generally restrained investment
attitude due to Covid-19. In addition to investments in the online marketplace METRO MARKETS
and Hospitality Digital, above all digital services for wholesale customers and IT solutions for the
delivery business were further expanded.
The divestments in financial year 2019/20 relate primarily to business and office equipment.
In the previous year, there were also significant real estate divestments, from which payments of
€74 million were received in the current year.
For more information about divestments, see the cash flow statement in the consolidated financial statements as
well as the notes to the consolidated financial statements under no. 41 – notes to the cash flow statement
page
233 .
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
69
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

METRO INVESTMENTS
Change
€ million
2018/191
2019/20
absolute
%
Germany
63
77
15
23.6
Western Europe (excl. Germany)
215
213
−3
−1.3
Russia
38
17
−21
−56.1
Eastern Europe (excl. Russia)
261
107
−154
−59.1
Asia
29
24
−5
−16.8
Others/consolidation
220
189
−31
−13.9
METRO
826
627
−199
−24.1
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
Liquidity (cash flow statement)
Cash inflow from operating activities from continuing operations amounted to €646 million in
financial year 2019/20 (2018/19: cash inflow of €1.209 million). Cautious shopping behaviour and
increased inventories in connection with Covid-19 led to a deterioration in cash flow from
changes in net working capital. Investing activities led to cash outflow of €265 million (2018/19:
cash inflow of €46 million). In the previous year, it included significant cash inflows from real
estate sales. Compared with previous year’s period, this represents a decrease in cash flow
before financing activities of €875 million to €380 million. Cash flow from financing activities
exhibited a cash outflow of €1,280 million (2018/19: cash outflow of €1.535 million). Total cash
flows from continuing operations amount to €510 million (2018/19: €−368 million).
Total cash flows from discontinued operations resulted in a cash inflow of €1,410 million
(2018/19: cash outflow of €88 million). This amount includes the proceeds from the disposal of
the hypermarket business including the real estate portfolio and METRO China.
For more information, see the cash flow statement in the consolidated financial statements as well as no. 41 – notes
to the cash flow statement
page 233 .
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
70
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

CASH FLOW STATEMENT1
€ million
2018/192
2019/20
Cash flow from operating activities of continuing operations
1,209
646
Cash flow from operating activities of discontinued operations
399
416
Cash flow from operating activities
1,608
1,062
Cash flow from investing activities of continuing operations
46
−265
Cash flow from investing activities of discontinued operations
−136
1,271
Cash flow from investing activities
−90
1,006
Cash flow before financing activities of continuing operations
1,255
380
Cash flow before financing activities of discontinued operations
263
1,687
Cash flow before financing activities
1,518
2,068
Cash flow from financing activities of continuing operations
−1,535
−1,280
Cash flow from financing activities of discontinued operations
−351
−278
Cash flow from financing activities
−1,886
−1,557
Total cash flows
−368
510
Currency effects on cash and cash equivalents
17
−29
Total change in cash and cash equivalents
−351
482
1 Abridged version. The complete version is shown in the consolidated financial statements.
2 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
Capital structure
As of 30 September 2020, the METRO balance sheet reports equity in the amount of €2.1 billion
(30/9/2019: €2.3 billion).
The profit or loss for the period attributable to the shareholders of METRO AG leads to an
increase in reserves retained from earnings of €460 million. It was mainly offset by currency
translation differences in equity, particularly due to the development of the rouble, and the
dividend payment for financial year 2018/19. The equity ratio stands at 15.6% (30/9/2019: 13.2%).
The increased equity ratio is particularly due to the decline in total assets following the disposal
of the majority stake in METRO China and the hypermarket business.
Negative reserves retained from earnings are not due to a history of loss but mainly due to
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.
An amount of €1,070 million was withdrawn from the capital reserve in financial year 2019/20.
Correspondingly, this amount was reclassified to reserves retained from earnings in the
consolidated financial statements.
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
71
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

€ million
Note no.
30/9/20191
30/9/2020
Equity
31
2,345
2,061
Share capital
363
363
Capital reserve
6,118
5,048
Reserves retained from earnings
−4,167
−3,358
Equity before non-controlling interests
2,314
2,053
Non-controlling interests
31
8
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
For more information about our equity, see the notes to the consolidated financial statements in the number listed in
the table.
Net debt decreased by €1.6 billion and amounts to €3.8 billion as of 30 September 2020 (30/9/
2019: €5.4 billion). Cash and cash equivalents increased by €1.0 billion as of 30 September 2020
to €1.5 billion (30/9/2019: €0.5 billion). By contrast, financial liabilities decreased by €0.6 billion
to €5.3 billion (30/9/2019: €5.9 billion).
€ million
30/9/20191
30/9/2020
Cash and cash equivalents
500
1,525
Short-term financial investments2
11
19
Financial liabilities (incl. liabilities from leases)
5,930
5,314
Net debt
5,419
3,771
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
2 Shown in the balance sheet under other financial assets (current).
The very substantial reduction in net debt is particularly due to the disposal of the majority
stake in METRO China and the hypermarket business. The transaction proceeds had an impact of
€2.0 billion. The attained purchase prices are fully attributable to cash, whereas the cash
resources of the disposal groups were included in assets held for sale instead of in the basis for
comparison of net debt. The cash of the disposal groups was also boosted by the improved
business performance of the recent months.
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
72
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

CASH FLOW FROM DIVESTMENTS ACCORDING TO THE CASH FLOW STATEMENT (FROM DISCONTINUED
OPERATIONS)
in € billion
METRO China
1.1
Hypermarket business
0.3
Cash flow from corporate transactions1
1.4
plus cash of the disposal group
METRO China
0.5
Hypermarket business
0.1
Total cash of the disposal group
0.6
Net cash inflow from continuing operations =
Transaction-related reduction in net debt
METRO China
1.6
Hypermarket business
0.4
Net cash inflow
2.0
1 The total cash flow from investing activities of discontinued operations amounts to €1.3 billion and includes the current investment cash flow of the disposal group until
the disposal.
As of 30 September 2020, METRO’s non-current liabilities amounted to €5.5 billion (30/9/2019:
€5.7 billion). Financial liabilities decreased by €0.2 billion to €4.5 billion.
As of 30 September 2020, METRO’s current liabilities amount to €5.6 billion (30/9/2019:
€9.8 billion). The decrease of €4.2 billion compared to the previous year’s figure is mainly due to
the disposal of the hypermarket business and the majority stake in METRO China. Financial
liabilities decreased by €0.4 billion to €0.8 billion, partly due to the repayment of a bond. Trade
liabilities decreased by €0.4 billion to €3.2 billion, mainly due to exchange rate fluctuations,
changes in payment terms and changes in purchasing volumes.
Compared to 30 September 2019, the debt ratio decreased from 86.8% by 2.4 percentage
points to 84.4%. It should be noted that previous year’s figure includes current liabilities of
€3.8 billion related to assets held for sale, which amounted to €7 million as of 30 September
2020.
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
page 220 .
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
73
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

€ million
Note no.
30/9/20191
30/9/2020
Non-current liabilities
5,652
5,506
Provisions for post-employment benefits plans and similar obligations
32
543
550
Other provisions
33
108
139
Financial liabilities
34, 36
4,766
4,541
Other financial and other non-financial liabilities
34, 37
81
210
Deferred tax liabilities
25
155
66
Current liabilities
9,832
5,625
Trade liabilities
34, 35
3,572
3,199
Provisions
33
158
287
Financial liabilities
34, 36
1,164
773
Other financial and other non-financial liabilities
34, 37
955
1,175
Income tax liabilities
34
169
184
Liabilities related to assets held for sale
43
3,813
7
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
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
page 250 and no. 46 – other
financial commitments
page 250 .
Asset position
In financial year 2019/20, METRO’s total assets decreased by €4.6 billion to €13.2 billion
(30/9/2019: €17.8 billion).
In financial year 2019/20, non-current assets from continuing operations decreased by
€0.6 billion to €8.3 billion (30/9/2019: €8.8 billion), primarily relating to property, plant and
equipment. This was largely due to negative currency effects, which reduced the carrying
amounts. The increase in investments accounted for by using the equity method had the
opposite effect. It was mainly due to the addition of 20.04% of the shares in WM Holding (HK)
Limited. This company acquired the operational business of METRO China and the associated
real estate as part of our partnership with Wumei.
€ million
Note no.
30/9/20191
30/9/2020
Non-current assets
8,838
8,277
Goodwill
19
785
731
Other intangible assets
20
562
576
Property, plant and equipment
21
6,635
5,811
Investment properties
22
127
188
Financial assets
23
97
98
Investments accounted for using the equity method
23
179
421
Other financial and other non-financial assets
24
169
201
Deferred tax assets
25
284
252
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
74
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

For more information about the development of non-current assets, see the notes to the consolidated financial
statements in the numbers listed in the table.
METRO’s current assets decreased by €4.1 billion compared to previous year’s figures to
€4.9 billion (30/9/2019: €9.0 billion). The disposal of the hypermarket business and the majority
stake in METRO China in the amount of €4.9 billion contributed to this development. By
contrast, cash increased by €1.0 billion to €1.5 billion (30/9/2019: €0.5 billion).
€ million
Note no.
30/9/20191
30/9/2020
Current assets
8,992
4,915
Inventories
26
1,946
1,888
Trade receivables
27
482
429
Financial assets
4
3
Other financial and other non-financial assets
24
901
902
Entitlements to income tax refunds
190
145
Cash and cash equivalents
29
500
1,525
Assets held for sale
30, 43
4,970
22
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
For more information about the development of current assets, see the notes to the consolidated financial
statements in the numbers listed in the table.
Discontinued operations
With the exception of 1 individual property, the disposals of majority stake in METRO China and
the hypermarket business have been completed.
The assets held for sale amount to €0.0 billion (30/9/2019: €5.0 billion). The liabilities
recognised in this connection amount to €0.0 billion (30/9/2019: €3.8 billion).
Of the resulting net assets of the previous year, the hypermarket business accounted for
€0.5 billion. The net assets attributable to METRO China in the previous year amounted to
€0.7 billion.
For more information, see the notes to the consolidated financial statements in no. 43 – discontinued business
sectors
page 236 .
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
75
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Earnings position
Overview of group business development
METRO’s business development in the past financial year 2019/20 was markedly impacted by
the Covid-19 pandemic and its consequences. After a successful start and positive operational
development in Q1 and Q2 of 2019/20, government measures in relation to the Covid-19
pandemic had a noticeable negative impact on METRO’s business development, especially from
mid-March to the beginning of May 2020. From the second half of Q3 2019/20, thanks to the
continuous easing of government restrictions and the roll-out of numerous operational
initiatives, business development improved continuously again. In Q4 2019/20, another strong
trend improvement was achieved in all regions and business development was almost at the
level of the previous year. In this phase METRO benefited from the diversification of its business
model and from its active positioning in the recovery phase of the HoReCa business.
The individual segments of METRO are affected by the Covid-19 pandemic to varying
degrees. The development is dependent on
the composition of the customer groups,
the duration of government restrictions, and
the extent of these measures in the respective countries.
The segments with a high Traders and SCO sales share were able to counteract the decline in
HoReCa sales through the positive sales development in these 2 customer groups. The sales
growth in Russia (31% Traders, 55% SCO sales share in financial year 2019/20) and Eastern
Europe (excluding Russia) (33% Traders, 36% SCO sales share in financial year 2019/20)
developed positively overall, while Germany (13% Traders, 46% SCO sales share in financial year
2019/20) remained roughly at previous year’s level. In segments with a high HoReCa sales share
and where government measures were more stringent, the restrictions imposed on restaurants
and hotels had a greater impact on business development. This was particularly noticeable in
Western Europe (excluding Germany), where the HoReCa sales share in financial year 2019/20
accounts for 60% with a country portfolio that was particularly affected by the restrictions in the
reporting year, such as France, Italy, Spain and Portugal.
For financial year 2019/20, this results in a like-for-like sales development of −3.9%. The like-
for-like sales development was positive in Russia and Eastern Europe (excluding Russia).
Germany was roughly at previous year’s level. Western Europe (excluding Germany) and Asia
experienced significantly negative like-for-like sales growth, mainly due to the effects of the
Covid-19 pandemic. Sales in local currency declined by −4.0%. Negatively impacted by adverse
currency developments, especially in Turkey and Russia as well as other countries in Eastern
Europe and Asia, reported sales of METRO AG decreased by −5.4% to €25.6 billion.
The adjusted EBITDA reached a total of €1,158 million in financial year 2019/20 (2018/19:
€1,392 million). Government measures in the context of the Covid-19 pandemic had a negative
impact on the majority of segments, especially in Western Europe. It was offset by cost savings
(for example, in the course of the efficiency programme announced at the headquarters),
improved earnings in logistics, licensing income from the partnership with Wumei and stable
operating performance in Russia, Eastern Europe (excluding Russia) and Germany.
Transformation costs of €47 million were incurred in financial year 2019/20 (2018/19: €0 million).
They were exclusively incurred in the Others segment and relate in particular to the successful
restructuring at the headquarters. The exchange rate developments of primarily the Russian and
Turkish currencies had a negative impact on earnings. Adjusted for currency effects, the
decrease was €−205 million (−15.1%) against the previous year.
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
76
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Earnings contributions from real estate transactions amounted to €3 million (2018/19:
€339 million). The EBITDA reached a total of €1,113 million (2018/19: €1,731 million).
€ million
2018/191
2019/20
Change
Sales
27,082
25,632
−5.4%
Adjusted EBITDA
1,392
1,158
−16.8%
Transformation costs
0
47
–
Earnings contributions from real estate transactions
339
3
−99.2%
EBITDA
1,731
1,113
−35.7%
EBIT
957
257
−73.1%
Investments
826
627
−24.1%
Stores
678
678
0.0%
Selling space (1,000 m2)
4,728
4,723
−0.1%
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
The reconciliation from sales to like-for-like sales in local currency is shown in the following:
Continuing operations
€ million
2018/19
2019/20
Change
Total sales
27,082
25,632
−5.4%
Total sales in local currency1
26,691
25,632
−4.0%
Sales of stores that were not part of the like-for-like panel in 2019/
202
85
73
–
Like-for-like sales in local currency
26,606
25,559
−3.9%
1 Sales in local currency of the previous year were calculated by converting reported sales of the previous year at the average exchange rate of the current financial year.
2 Not included in the like-for-like panel are, among others, new openings, stores in start-up phase, closures, service companies and major refurbishments.
Comparison of outlook with actual business developments
The comparison of the actual business development with the outlook for financial year 2019/20
relates to the continuing operations of METRO.
The original sales and EBITDA outlook for financial year 2019/20 was retracted on
3 April 2020. The reason for it was the uncertainty over the duration of the restrictions imposed
by the government in response to the Covid-19 pandemic and their effects on business
development. For financial year 2019/20, METRO had originally expected growth in total sales
and like-for-like sales of 1.5% to 3% and EBITDA excluding transformation costs and earnings
contributions from real estate transactions at approximately the same level as in financial year
2018/19. The outlook was based on the assumption of stable exchange rates and no further
adjustments to the portfolio and only covered METRO's continuing operations.
After the business development at the beginning of Q3 2019/20 was initially significantly
negatively affected by government measures in connection with Covid-19 and the resulting
impact on public life, the gradual easing of Covid-19 restrictions in the further course of Q3 and
the measures taken by the Management Board in this regard to adjust to the prevailing
conditions led to an enormous recovery in sales development. Against this background and
considering the stable sales development and further trend improvement in the HoReCa
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
77
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

business at the beginning of Q4, the Management Board decided on 3 August 2020 to issue the
following outlook for financial year 2019/20:
For financial year 2019/20, METRO expects a decline in total sales in local currency and like-
for-like sales of 3.5% to 5% and a decline in adjusted EBITDA of around €200 million to
€250 million compared to the previous year. Russia and Eastern Europe (excluding Russia) are
expected to demonstrate significantly better developments in terms of sales and EBITDA than
the group average for financial year 2019/20, while Western Europe and Asia are expected to
turn out weaker. As a result of savings and other effects, the adjusted EBITDA in the Others
segment will also have a significant positive effect.
The outlook was based on the assumption of stable exchange rates and no further
adjustments to the portfolio and only covers METRO's continuing operations. The outlook was
also based on the assumption that there will be no further escalations of the Covid-19 pandemic
and no corresponding negative effects in countries relevant for METRO and that the stable
recovery of the HoReCa sector will continue.
With a decline in total sales of −4.0% in local currency and like-for-like sales of −3.9%, METRO
reached the upper end of the outlook (−3.5% to −5%). The significantly better development
expected for Russia and Eastern Europe (excluding Russia) than the Group average in terms of
sales occurred as projected. As expected, Western Europe and Asia did not develop as strongly.
Germany was almost at the same level as the previous year.
In terms of adjusted EBITDA, the Management Board of METRO AG expected a decline of
around €200 million to €250 million compared to the previous year (€1,392 million). As a result
of savings and other effects, the adjusted EBITDA in the Others segment will also have a
significant positive effect here. Adjusted for negative currency effects of €29 million, METRO’S
adjusted EBITDA was €−205 million or −15.1% below the previous year’s figures. It already
reflects the unexpected circumstances surrounding the second voluntary takeover bid by EPGC
in the mid to high single-digit million range. With this decline, METRO is at the upper end of its
outlook. This also applies to the outlook for the segments Russia and Eastern Europe (excluding
Russia), which, as expected, achieved a significantly better EBITDA development than the group
average. The segments Western Europe and Asia developed weaker than expected. Germany
was almost at previous year’s level. As expected, the adjusted EBITDA in the Others segment
developed significantly positively, reaching €42 million (2018/19: €−34 million).
METRO achieved its adjusted sales and earnings outlook for financial year 2019/20 at the
upper end of the outlook range.
Sales and earnings development of the segments
In Germany, like-for-like sales declined by −0.8% in financial year 2019/20, thus remaining almost
at the level of the previous year. Reported sales declined by −0.8%. Sales developed differently
over the 4 quarters. In the first half of the year, sales developed positively and were above
previous year's level, partly supported by stock up purchases at the beginning of the pandemic.
In the course of the government-imposed restrictions, sales declined significantly in the Q3. The
gradual re-opening of the hospitality industry and tourism business initiated a continuous,
strong trend improvement, which points to market share gains. In Q4, positive like-for-like sales
growth was thus already achieved again.
Like-for-like sales in Western Europe (excluding Germany) declined significantly in financial
year 2019/20 due to the impact of the Covid-19 pandemic by −10.6%. Reported sales dropped by
−10.7% to €9.7 billion. After Q1 started out at previous year’s level, the effects of temporary
restaurant closures due to the Covid-19 pandemic became clearly noticeable in the course of the
financial year, particularly in France, Italy, Spain and at Pro à Pro. However, in Q4 the sales trend
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
78
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

already improved significantly compared to Q3 2019/20, with clear signs of market share gains
in France, Italy and Spain.
In Russia, like-for-like sales in financial year 2019/20 were clearly positive with an increase of
3.8%. This development is attributable to the strategic repositioning measures already initiated
in the previous year as well as stock up purchases related to the Covid-19 pandemic. Increased
demand from Traders and SCO customer groups, the expansion of the Fasol trader franchise
business and the growing e-commerce business were positive drivers. Sales in local currency
increased by 4.2% and have remained continuously above the level of the previous year since the
beginning of calendar year 2020. As a result of negative currency effects, reported sales
decreased by −0.7%.
In Eastern Europe (excluding Russia), like-for-like sales in the financial year increased by 2.2%.
In most countries, government restrictions on HoReCa customers had a negative impact, with
the Traders and SCO business exerting a supportive effect. The sales increase was
predominantly attributable to the performance in Ukraine, Turkey and Romania. In local currency,
sales also increased by 2.2%. Due to negative currency effects, especially in Turkey, reported
sales decreased by −0.9% only. In the course of financial year 2019/20, Eastern Europe achieved
a consistently positive like-for-like sales development, with the exception of Q3.
Like-for-like sales in Asia decreased significantly by −7.0% in financial year 2019/20. This is
mainly due to the sales development in Classic Fine Foods, in Japan and in India as a
consequence of the Covid-19 pandemic. However, Q4 showed an improvement in the trend
compared to Q3. Sales in local currency for the financial year declined by −6.7%. As a result of
negative currency effect developments, the reported sales decreased by −9.3%.
In financial year 2019/20, METRO’s delivery sales dropped significantly by −14.3% to
approximately €3.9 billion (2018/19: €4.6 billion) and achieved a sales share of 15% (2018/19:
17%). The delivery business also recovered towards the end of the financial year, albeit slightly
delayed in comparison to the store-based business due to the current customer preference for
greater purchasing flexibility provided by the store-based business.
As of 30 September 2020, the store network comprised 678 stores (1 new opening in Ukraine
and 1 closure in Russia).
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
79
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

METRO KEY SALES FIGURES 2019/20
In year-on-year comparison
Sales (€ million)
Change in % compared with the
previous year's period
2018/19
2019/20
in group
currency (€)
Currency
effects in
percentage
points
in local
currency
like-for-like
sales
(in local
currency)
METRO
27,082
25,632
−5.4%
−1.4%
−4.0%
−3.9%
Germany
4,735
4,699
−0.8%
0.0%
−0.8%
−0.8%
Western Europe (excl. Germany)
10,752
9,603
−10.7%
0.0%
−10.7%
−10.6%
Russia
2,662
2,644
−0.7%
−4.9%
4.2%
3.8%
Eastern Europe (excl. Russia)
7,191
7,125
−0.9%
−3.1%
2.2%
2.2%
Asia
1,696
1,539
−9.3%
−2.5%
−6.7%
−7.0%
Others
46
22
−52.8%
0.0%
−52.7%
–
In Germany adjusted EBITDA reached a total of €125 million in financial year 2019/20 (2018/19:
€128 million). In this segment, the strong sales development in H1 of 2019/20 had a positive
effect and managed to largely compensate for the Covid-19-related declining sales development
in Q3 2019/20. METRO Germany performed significantly better overall than Rungis Express,
where government restrictions had a significantly more negative impact due to the strong focus
on hospitality industry customers.
In Western Europe (excluding Germany) the adjusted EBITDA declined to €394 million in
financial year 2019/20 (2018/19: €636 million). This significant decline is mainly a consequence
of the Covid-19-related government restrictions on the hospitality and tourism industry. In
particular in France, Italy, Spain and Pro à Pro, they had a significant negative impact on sales
development in the context of the Covid-19 pandemic.
The adjusted EBITDA in Russia amounted to €224 million in financial year 2019/20 (2018/19:
€235 million). Adjusted for currency effects, EBITDA was at the same level as last year, with an
attractive pricing model contributing to sustained sales growth and stable earnings.
In Eastern Europe (excluding Russia) the adjusted EBITDA reached a total of €371 million in
financial year 2019/20 (2018/19: €385 million). Among other things, this decline is due, to the
negative currency development in Turkey and general cost developments in the region. Adjusted
for currency effects, EBITDA adjusted in Eastern Europe (excluding Russia) dropped by
€−1 million.
The adjusted EBITDA in Asia reached a total of €0 million in financial year 2019/20 (2018/19:
€43 million). This is particularly a result of the development of Classic Fine Foods due to
unstable political conditions and regulatory restrictions related to the Covid-19 pandemic. In
India and Japan, the Covid-19 related government measures also had a negative impact on the
sales development. Adjusted for currency effects, EBITDA adjusted in Asia dropped by
€−40 million.
The adjusted EBITDA in the Others segment amounted to €42 million in financial year
2019/20 (2018/19: €−34 million). The non-recurring income from damages in the low double-
digit millions included in the previous year, which was mainly generated in the Others segment,
was more than offset by cost savings, including those from the implemented efficiency
programme at the headquarters, an improved result in logistics and licensing income from the
partnership with Wumei. Furthermore, the negative earnings contributions for the second
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
80
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

voluntary takeover bid by EPGC, which were already partially incurred in Q4 of 2019/20, are
lower than in the previous year.
Adjusted EBITDA
Transformation costs
Earnings
contributions from
real estate
transactions
EBITDA
€ million
2018/191
2019/20
Chan-
ge (€)
2018/191
2019/20
2018/191
2019/20
2018/191
2019/20
Total
1,392
1,158
−234
0
47
339
3
1,731
1,113
Germany
128
125
−3
0
0
0
0
128
125
Western Europe
(excl. Germany)
636
394
−242
0
0
29
1
665
395
Russia
235
224
−11
0
0
0
0
235
224
Eastern Europe
(excl. Russia)
385
371
−13
0
0
182
2
567
373
Asia
43
0
−43
0
0
107
0
150
0
Others
−34
42
76
0
47
21
0
−13
−5
Consolidation
0
1
2
0
0
0
0
0
1
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
Depreciation, financial result and taxes
DEPRECIATION, FINANCIAL RESULT AND TAXES
€ million
2018/191
2019/20
EBITDA
1,731
1,113
Depreciation
782
857
Reversals of impairment losses
8
1
Earnings before interest and taxes EBIT
957
257
Earnings share of non-operating companies recognised at equity
0
0
Other investment result
−1
3
Interest income/expenses (interest result)
−241
−220
Other financial result
12
−72
Net financial result
−230
−289
Earnings before taxes EBT
728
−32
Income taxes
−301
−108
Profit or loss for the period from continuing operations
427
−140
Profit or loss for the period from discontinued operations after taxes
−93
612
Profit or loss for the period
333
471
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
Depreciation
Impairment losses rose by €74 million, from €782 million to €857 million. This increase was due
in part to higher amortisation of intangible assets as a result of various digitalisation initiatives.
On the other hand, impairments were higher than in the previous year. This in turn was mainly
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
81
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

due to the full impairment of goodwill at Classic Fine Foods and selective impairment of
individual locations, also as a result of regulatory restrictions related to the Covid-19 pandemic.
Further disclosures about impairment losses are providedin the notes to the consolidated financial statements in no.
15 – depreciation/amortisation/impairment losses
page 181 .
Net financial result
The net financial result primarily comprises the interest result of €−220 million (2018/19:
€−241 million) and the other financial result of €−72 million (2018/19: €12 million). Net interest
result improved significantly as a result of more favourable refinancing terms as well as from
declining interest expenses from leases. Compared to the previous year, the other financial result
changed mainly due to weaker exchange rates for Eastern European currencies and the Turkish
lira, which had a negative impact on the measurement of foreign currency lease liabilities.
For more information about the net financial result, see the notes to the consolidated financial statements in no. 7 –
earnings share of operating/non-operating companies recognised at equity
page 176 , no. 8 – other investment
result
page 176 , no. 9 – net interest income/interest expenses
page 177 and no. 10 – other financial result
page 177 .
Taxes
At €108 million (2018/19: €301 million), recognised income tax expenses are €193 million below
the previous year’s figures. The decline in current income taxes amounting to €82 million
(2018/19: increase of €42 million) is mainly due to the lower consolidated earnings before tax
compared to the previous year. The decrease in deferred tax expenses of €111 million (2018/19:
increase by €40 million) is due to the write-downs of deferred taxes on domestic loss carry-
forwards recognised in the previous year.
For more information about income taxes, see the notes to the consolidated financial statements in no. 12 – income
taxes
page 179 .
€ million
2018/191
2019/20
Actual taxes
215
133
thereof Germany
(9)
(10)
thereof international
(206)
(123)
thereof tax expenses/income of current period
(221)
(143)
thereof tax expenses/income of previous periods
(−6)
(−10)
Deferred taxes
86
−25
thereof Germany
(105)
(24)
thereof international
(−19)
(−49)
301
108
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
Discontinued operations
The development of the current business of discontinued operations does not permit an
adequate comparison with the previous year, since METRO China is only included pro rata until
22 April 2020 and the hypermarket business pro rata until 24 June 2020 and
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
82
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

10 September 2020. Up to those dates, sales of METRO China and the hypermarket business
developed noticeably above previous year’s level.
In financial year 2019/20, the valuation/disposal earnings after tax amount to a total of €316 million
(2018/19: €−209 million). Of this amount, METRO China accounts for €943 million (2018/19:
€0 million) and the hypermarket business for €−627 million (2018/19: €−209 million). Including the
ongoing business of the 2 disposal groups, the profit or loss for the period resulting from discontinued
operations after taxes amounts to €612 million (2018/19: €−93 million).
For more information, see the notes to the consolidated financial statements in no. 43 – discontinued operations
page 236 .
Profit or loss for the period and earnings per share
The profit or loss for the period from continuing operations in financial year 2019/20 was €−140 million,
€567 million below the profit or loss for the period of the previous year (2018/19: €427 million).
The profit or loss for the period from continuing and discontinued METRO AG operations was
€471 million in financial year 2019/20, and was thus €138 million above the net result for the
profit or loss for the previous year’s period (2018/19: €333 million).
Net of profit or loss attributable to non-controlling interests, profit or loss for the period
attributable to the shareholders of METRO AG from continuing and discontinued operations
amounts to €460 million (2018/19: €322 million). This represents an increase of €138 million,
with continuing operations contributing €−566 million.
On this basis, METRO achieved earnings of €1.27 per share from its continuing and
discontinued operations in financial year 2019/20 (2018/19: €0.89), of which €−0.40 came from
continuing operations (2018/19: €1.16). The calculation for the reporting period was based on a
weighted number of 363,097,253 shares. Profit or loss for the period attributable to shareholders
of METRO AG was distributed according to this number of shares. There was no dilution from
so-called potential shares in financial year 2019/20 or in the previous year.
This result forms the basis for the dividend recommendation.
2018/191
2019/20
Change
absolute
Profit or loss for the period from continuing operations
€ million
427
−140
−567
Profit or loss for the period from discontinued operations after
taxes
€ million
−93
612
705
thereof impairment of the hypermarket business
€ million
(209)
(598)
(389)
Profit or loss for the period
€ million
333
471
138
Profit or loss for the period attributable to non-controlling
interests
€ million
11
11
0
from continuing operations
€ million
(6)
(5)
(−1)
from discontinued operations
€ million
(5)
(6)
(1)
Profit or loss for the period attributable to the shareholders of
METRO AG
€ million
322
460
138
from continuing operations
€ million
(421)
(−146)
(−566)
from discontinued operations
€ million
(−99)
(606)
(705)
Earnings per share (basic = diluted)
€
0.89
1.27
0.38
from continuing operations
€
(1.16)
(−0.40)
(−1.56)
from discontinued operations
€
(−0.27)
(1.67)
(1.94)
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
C O M B I N E D
M A N A G E M E N T  R E P O R T
3  E C O N O M I C  R E P O R T
83
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

4 REPORT ON EVENTS AFTER THE CLOSING DATE AND OUTLOOK
REPORT ON EVENTS AFTER THE CLOSING DATE
Events after the closing date
METRO is acquiring the Aviludo Group
METRO is acquiring the Aviludo Group, the second largest Portuguese food supplier based in
Quarteira, Algarve. In addition to the operational business, the transaction also includes
Aviludo’s logistics platforms. The Aviludo Group’s sales in 2019 (before the Covid-19 pandemic)
amounted to approximately €152 million. The acquisition price is in the mid double-digit million
range. This acquisition is a decisive step towards a complete focus on HoReCa customers. The
acquisition is subject to approval by the relevant authorities. The transaction is expected to be
completed in the first half of 2021.
EP Global Commerce GmbH increases its share of voting rights in METRO AG
EP Global Commerce GmbH, which currently holds 29.99% of the voting rights in METRO AG
based on the notification of voting rights dated 10 October 2020, published a voluntary takeover
bid on 1 October 2020 with regard to all shares in METRO AG. In its final announcement on 20
November 2020, EP Global Commerce GmbH declared that a total of 10.60% of the ordinary
shares had been tendered to it until the end of the additional offer period. The finalisation of the
takeover bid is subject to regulatory approvals. According to the information in the offer
document, EP Global Commerce GmbH expects the closing by the end of 2020, but no later
than by February 2021.
OUTLOOK
The outlook prepared by METRO considers relevant facts and events that were known at the
time of preparing the consolidated financial statements and that may impact the future
development of our business. The outlook on economic parameters is based on an analysis of
primary data used to derive forecasts. Oxford Economics is the main data source used to
forecast business conditions. It is important to understand that the statements below are made
in the context of the current pandemic. Due to the volatile global development of the infection
and of government countermeasures associated with combating it, all forecasts are subject to a
high degree of uncertainty. Therefore, they could not only change quickly, but also significantly.
The statements made for this report relate to the closing date of 20 November 2020. They may
have become obsolete due to recent developments since then.
C O M B I N E D
M A N A G E M E N T  R E P O R T
4  R E P O R T  O N  E V E N T S  A F T E R  T H E  C L O S I N G  D A T E
A N D  O U T L O O K
84
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Macroeconomic parameters
Global economy
The global economy is expected to recover in the course of the coming financial year 2020/21.
Due to the significant resurgence in Covid-19 infections in autumn 2020, particularly in Europe,
many European countries have already responded by (re-)introducing economic and social
restrictions. However, the current restrictions are less strict than they were in the spring, to avoid
strong negative effects of a similar magnitude on national economies. Since the education
sector as well as construction and industry are often excluded from the new restrictions, many
European countries speak of a ‘lockdown light’ to clearly distinguish it from the lockdown in
spring 2020. The current measures in most countries are especially aimed at reducing or
avoiding personal contact. Accordingly, cultural life and leisure activities are particularly
affected, which also results in far-reaching restrictions for tourism, the events industry as well as
the accommodation and hospitality sector. Consequently, the measures again have a direct
negative impact on the business activities of the HoReCa sector, which is one of our core
customer groups. The resulting economic consequences should become particularly apparent in
countries with strong tourism.
Before restrictions were tightened again, forecasts expected a return in global economic
output up to the same level as the penultimate financial year 2018/19. However, a return to pre-
crisis levels is likely to be delayed further due to the importance of Europe for the global
economy. Meanwhile, a recovery of the global economy to the level before the pandemic still
depends on the course of the pandemic on other continents and in individual countries. Apart
from the European economy, the American and Chinese economies in particular contribute
significantly to global economic growth.
In addition to the course of the Covid-19 pandemic, it will be important for a global economic
recovery to which extent an escalation of existing trade conflicts, for example between the USA
and China or the EU, can be avoided. Considering the UK’s imminent withdrawal from the EU, a
successful conclusion of a treaty governing the economic cooperation between the EU and the
UK could also have a positive impact.
Germany
The forecast for the German economy for financial year 2020/21 so far assumes a clearly positive
development and real growth of approximately 1%. However, real economic output will not yet
reach the level of the penultimate financial year. In November, the authorities reintroduced
restrictions in response to the outbreak of the infection, which, in addition to the cultural sector,
primarily affect tourism and the hotel and hospitality industry as well as public events for a
period of one month – with an extension possibility until December. Provided that the
restrictions are only for a short period of time and, subject to the further pandemic
development, the measures should only slow down overall economic recovery to a limited
extent.
According to forecasts to date, recovery is spreading across almost all sectors, that is,
imports, exports, private consumption and the labour market. In the hospitality and tourism
sectors, recovery depends not only on lifting the restrictions, but also on the consumers feeling
safe and their propensity to consume. While the labour market, supported by government
stimulus measures, has so far proved to be robust, it cannot be ruled out that negative economic
effects of the pandemic will only be felt with a time lag in the coming financial year. For
example, the economy could be affected by a rise in insolvencies or unemployment and the
resulting negative impact on private consumption.
Depending on the further course of the pandemic, we expect the hotel and hospitality
industry to perform positively in calendar year 2021 compared to the previous year. Currently,
C O M B I N E D
M A N A G E M E N T  R E P O R T
4  R E P O R T  O N  E V E N T S  A F T E R  T H E  C L O S I N G  D A T E
A N D  O U T L O O K
85
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

there is no reason to assume that the pre-crisis level of calendar year 2019 can be reached again
in 2021. Whether this level can be reached again in the year after that cannot be reliably
predicted right now.
Western Europe
For the coming financial year, an economic recovery is expected for Western Europe as a whole.
However, this will not yet match the level seen before the outbreak. The deterioration in the
infection situation in all Western European countries in autumn 2020 could contribute to this by
delaying economic recovery. As in Germany, the reintroduced measures to combat the pandemic
in most Western European countries will not be on a par with the level of spring 2020. If the
infection rate cannot be contained with the introduced measures or if the current restrictions,
contrary to current plans, continue to be enforced for a longer period of time or are expanded to
other areas, there is a risk that economic recovery will not materialise until the following
financial year.
As in Germany, the manufacturing sector is a key building block of the recovery. In addition to
higher domestic demand, exports, particularly to Asia, are also expected to increase again. In
some Western European countries, such as Austria, Spain and Portugal, tourism accounts for an
above-average proportion of the gross domestic product; therefore, economic development is
more dependent on the tourism industry. However, due to the current situation and a possible
change in consumer behaviour with regard to travel preferences, the development of tourism
cannot be reliably forecast. However, we anticipate that it will take several years before tourism
returns to pre-pandemic levels.
The development of the hospitality industry is closely linked to the tourism sector, especially
in countries that are more dependent on the travel industry. While we expect a clearly positive
development of the hospitality industry in Western Europe as a whole compared to 2020, the
recovery in tourism countries could initially be weaker. However, we generally expect domestic
demand in the hospitality industry to grow in all Western European countries over the next 2
financial years.
Russia
For Russia, current forecasts assume that overall economic growth will end up slightly below the
level of financial year 2019/20, with the economy expected to continue to recover over the
course of the year. The recovery is attributable to an increase in industrial production. The
energy sector, above all oil and gas, accounts for a large share of the GDP at around 20% and
more than 60% of Russian exports. A return to global economic growth could be associated with
higher sales of oil and gas, and thus an improvement in public finances, which could also result
from potential increases in commodity prices. The labour market is expected to develop
increasingly positively throughout the course of the year. Private consumption, which declined
as a result of the Covid-19 measures, is also projected to reverse over the course of the financial
year, resulting in high growth momentum. A strong increase in private consumption should have
a positive effect on demand for food, which is particularly important for the Traders sector. It
should also result in increased sales in the hospitality industry.
C O M B I N E D
M A N A G E M E N T  R E P O R T
4  R E P O R T  O N  E V E N T S  A F T E R  T H E  C L O S I N G  D A T E
A N D  O U T L O O K
86
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Eastern Europe
The economy in Eastern Europe could already return to the level of financial year 2018/19 in the
next year. The Eastern European countries were affected by the Covid-19 pandemic much later in
spring and with significantly lower infection rates than in Western Europe. As a result, the
economic losses in Eastern Europe were comparatively small. However, a return to pre-crisis
levels in Eastern Europe requires that the recent sharp rise in infection figures, which already
significantly exceeds the level of spring 2020, can be curbed quickly. In this case, the positive
economic development should apply to most countries in this region. Industrial production as
well as imports and exports should return to the level before the outbreak of the crisis. The same
applies to private consumption, supported by an expected easing of the situation on the labour
market, for example in Poland or Romania.
Even if the infection situation remains tense, we expect a positive development in demand
among Traders due to the continued importance of the Traders sector for the basic food supply.
By contrast, the development of the hospitality industry is strongly tied to the course of the
pandemic and potential restrictions. It cannot be predicted under the current conditions.
Asia
Following the slump during the pandemic, the Asian economy is expected to grow strongly
again, probably by more than 5% compared to the previous year. It could reach about the same
level as before the crisis. India is likely to follow the positive development of the other Asian
countries, albeit with a time delay, as the country continues to be relatively severely affected by
Covid-19. If the pandemic can be kept under control, the labour market, private consumption,
imports and exports should develop positively again according to the forecast. In contrast to
Europe, a renewed outbreak of the pandemic has so far been largely prevented in Asian
countries. This is also reflected in a faster recovery in travel activity in Asia compared to other
regions, from which the hotel and hospitality industry should also benefit. Overall, strong year-
on-year growth is expected for the hospitality industry in calendar year 2021 and beyond.
However, this is based on the assumption that the Covid-19 situation will not worsen again.
Another deterioration of the Covid-19 infection situation is expected to lead to a negative
development of the economic situation in many countries in the region.
Outlook of METRO
The Management Board of METRO AG expects a return to sustainable sales and earnings growth
after the Covid-19 pandemic and confirms the clear ambition to improve METRO’s competitive
position and to gain further market share. This conviction is backed by a continuously strong
financial profile, learnings taken from the first wave of Covid-19, the ability to preempt the needs
of the customers and to be a leading player in the expected consolidation of the wholesale
industry.
For financial year 2020/21, however, METRO’s financial performance will be impacted by the
development of the Covid-19 pandemic. First, there is an impact of Covid-19-related
governmental restrictions to public life, which is difficult to estimate. Duration and intensity of
those restrictions determine that impact but are yet unknown. Second, there is an upside
potential, which would result from an earlier than expected widely available vaccination. The
Management Board therefore plans with different scenarios and updates them regularly.
Based on stable exchange rates and no adjustments to the portfolio METRO currently expect
sales (both total sales and like-for-like) to be slightly below previous year. EBITDA adjusted is
expected to decline by a mid-double-digit million euro amount. This outlook thereby assumes
governmental restrictions to public life to last partially until mid Q2 of financial year 2020/21 and
a fast and substantial recovery of the hospitality and tourism industry thereafter. Experiences
gained from managing the first wave of Covid-19 will, along with cost efficiency and proven
C O M B I N E D
M A N A G E M E N T  R E P O R T
4  R E P O R T  O N  E V E N T S  A F T E R  T H E  C L O S I N G  D A T E
A N D  O U T L O O K
87
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

measures to protect the business, allow METRO to mitigate the impact on METRO’s operations
compared to spring 2020. In line with observations in November 2020, the Management Board
expects one month of full lockdown in the entire country portfolio will result in average sales
losses of around €400 million equalling sales losses of approximately 1.5 percentage points of
sales growth compared to previous year.
The sensitivity of sales and earnings to the duration and severity of governmental restrictions
is likely to follow the same pattern as in the previous year, with the by far highest impact in
HoReCa driven regions, esp. in the segment Western Europe. In contrast, the segments Russia
and Asia are expected to perform better than the group. On group level, the Management Board
generally expect a back end-loaded performance, given the high comparison base in H1 (little to
no Covid-19 impact on group level in previous year) and an expected more favourable business
environment from spring 2021 onwards.
Given the uncertainty regarding the further development of Covid-19, the operational
business keeps on following the “Protect-Preserve-Grow” strategy, which has proven to be
effective in financial year 2019/20. This strategy was key for the continuous market
outperformance and the rapid recovery METRO has shown during and after the first wave of
Covid-19 and it includes,
ensuring safety of employees and customers,
optimising the cost base by adjusting capacities and scaling back discretionary capital
expenditures,
leveraging flexible store and delivery operations
fostering strong customer relationships by being an uncompromising business partner.
C O M B I N E D
M A N A G E M E N T  R E P O R T
4  R E P O R T  O N  E V E N T S  A F T E R  T H E  C L O S I N G  D A T E
A N D  O U T L O O K
88
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

5 OPPORTUNITIES AND RISK REPORT
Risk management system and internal control system
A prerequisite for the long-term success of our company is to identify opportunities and risks at
an early stage and to exploit or manage them.
The Management Board of METRO AG bears overall responsibility for an effective risk
management system (RMS) and an effective internal control system (ICS). Both management
systems and the opportunities and risks that are considered significant for METRO and the
corresponding measures are presented in this chapter of the annual report.
The RMS and the ICS of METRO are implemented by the Group Governance department
based on the recommendations of the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) and the requirements of the audit standards 981 and 982 of the Institut der
Wirtschaftsprüfer in Deutschland e. V. (IDW, Institute of Public Auditors in Germany).
Accordingly, the management systems consist of the following elements:
RISK MANAGEMENT SYSTEM AND INTERNAL CONTROL SYSTEM
Elements of METRO’s 
risk management s
risk management syyssttem 
em and  int
internal c
ernal contr
ontrol s
ol syyssttem
em
Organisation
Communication,
training and
reporting
Monitoring
and
improvement
Purpose and
culture
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
89
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Objectives of the RMS and ICS
The overarching objectives of the RMS and ICS are to protect assets and support sustainable
growth for METRO. The RMS supports these objectives through systematic reporting on
opportunities and risks. It facilitates informed decisions and creates transparency. The ICS
supports the aforementioned objectives by creating reliable operational and financial processes
in order to ensure accuracy, completeness and timeliness of financial reporting in particular and
compliance with laws and guidelines.
Organisation of the RMS and ICS
Group-wide RMS and ICS tasks and responsibilities are clearly defined and reflect our corporate
structure. We combine centralised business management by the management holding company
METRO AG with the decentralised responsibility of the sales companies for the operational
business and the service companies that support the operational business.
It is the responsibility and a legal obligation of the Management Board of METRO AG to
organise a governance management system for METRO. We regard the risk management system,
the internal control system, the compliance management system (CMS) as well as Internal Audit
to be components of the governance, risk and compliance system (GRC system). This
organisational structure is based on the governance elements identified in § 107 Section 3 of the
German Stock Corporation Act (AktG) as well as the German Corporate Governance Code. The
fundamental principles of the GRC system are defined and documented in our governance, risk
and compliance guideline. On this basis, we continuously work on increasing the efficiency and
effectiveness of the GRC system.
The group’s Governance, Risk and Compliance Committee (GRCC) is chaired by the Chief
Financial Officer of METRO AG and regularly discusses methods and further developments of
the GRC subsystems. The structural and procedural organisation of the RMS and the ICS are
clearly defined in the relevant guidelines and implemented throughout the group.
Identification, assessment and steering of risks
We only assume business risks if they are considered to be manageable and if the associated
opportunities promise an appropriate increase in our value. We bear the risks associated with
the core processes of the wholesale business ourselves. These core processes include the
development and implementation of business models, decisions about store locations and the
procurement and sale of merchandise and services. Risks associated with supporting processes
are mitigated within the group or transferred to third parties where reasonable. We generally do
not assume risks that are related neither to core nor to supporting processes. Risks assessed as
probable are included in our business plans.
Risks are identified and assessed in the annual risk inventory for METRO AG and its
subsidiaries. This is based on a standardised risk catalogue. In addition, business model-specific
risks are supplemented locally.
We classify all risks according to standard criteria using quantitative and qualitative scales.
One part of the assessment focuses on the loss potential, which includes negative effects on our
business objectives. The key indicator here is EBIT. The other part of the assessment focuses on
the probability of occurrence. We break risks down into the following 4 risk categories:
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
90
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Loss potential
Significant
> €300 million
Major
> €100–300 million
Moderate
> €50–100 million
Minor
≤ €50 million
Probability of occurrence
Probable
> 50%
Possible
> 25–50%
Low
≥ 10–25%
Unlikely
< 10%
All risks are assessed with their potential impact at the time of the risk analysis and before
potential mitigating measures (presentation of gross risks). The central IT tool myGRC is used to
identify and assess risks and to document key control measures. We generally assess risks over a
prospective 1-year period; strategic risks cover at least the medium-term planning horizon of 3
years. Longer-term risks and opportunities, for example related to climate change or political
risks, are additionally assessed by the relevant functional experts.
After the risks are identified and assessed by the companies, they are allocated by topic to
the various functions within METRO and validated by the respective divisional managers; if
necessary, they are then adjusted and supplemented. Based on these so-called functional risk
profiles, the Group Governance department prepares a proposal of consolidated risks. Before the
proposal is submitted to the Management Board of METRO AG for authorisation, it is first
reviewed and approved by the GRC Committee.
The consolidated risks considered significant by the Management Board of METRO AG are listed under ‘description
of the opportunity and risk situation
page 94 ’.
Systematically identifying and communicating opportunities is an integral part of METRO’s
corporate management.
For this purpose, we conduct macroeconomic analyses, study relevant trends and evaluate
market, competition and locality analyses. We also analyse the critical success factors of our
business models and the relevant cost drivers of our company. The Management Board of
METRO AG specifies the derived market and business opportunities as well as efficiency
enhancement potential in the context of strategic as well as short-term and medium-term
planning. It does so by engaging in a regular dialogue with the management of the group
companies and units at the central holding company. As a wholesale company, we pursue
market- and customer-driven business approaches in this process and continually review our
strategy to ensure long-term sustainable growth. The consolidated opportunities and risks are
presented jointly to the GRC Committee and the Management Board.
The responsibility for steering risks lies with the functionally and operationally responsible
persons within METRO. The ICS supports the group companies in fulfilling their responsibility to
manage process risks.
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
91
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Internal control system for financial and operational processes
METRO’s ICS defines group-wide minimum requirements for the design of the internal control
system for financial processes (for example accounting and tax processes) or operational
processes (such as purchasing processes and processes in the markets) for METRO AG and its
subsidiaries. Among others, these requirements cover the control design, control execution,
monitoring the effectiveness of controls and reporting on effectiveness analyses. The METRO
control framework, the local control design of the companies, the control execution and
documentation as well as the effectiveness analyses of the subsidiaries are documented in the
central IT tool myGRC.
IFRS accounting guideline
A group-wide IFRS accounting guideline that is compulsory for all companies included in the
consolidated financial statements ensures the uniform METRO group-wide application of
accounting procedures. The guidelines are periodically updated by the Corporate Accounting &
Controlling department. The management of each major group company is obligated to confirm
compliance with the guidelines in a formal declaration on each reporting date.
Accounting processes of companies included in the consolidated financial statements
The separate financial statements of the companies to be included in the consolidated financial
statements are generally prepared using SAP-based accounting systems (SAP FI). Clearly
assigned competencies and roles ensure clearly defined responsibilities for the individual
financial statement preparation activities. This unambiguous functional separation also prevents
potential conflicts of interest. Many group companies prepare their separate financial statements
on the basis of a centrally managed table of accounts using uniform accounting rules.
To avoid risks relating to non-compliance with accounting rules, deadlines or dates and to
document the work steps to be performed as part of the preparation of individual and
consolidated financial statements in accordance with IFRS, planning tools are available to assist
in monitoring the content and timing of work processes. The scheduling and monitoring of the
milestones and activities as well as the design of individual company internal controls necessary
for the preparation of separate financial statements are part of the responsibilities of the
respective company’s management.
Accounting processes for consolidation purposes
The consolidation of accounting-related data for the purpose of group reporting is performed by
a centralised consolidation system (CCH Tagetik). Without exception, all consolidated METRO
companies must work within this system. It provides a uniform accounts table to be used by all
consolidated companies in accordance with the IFRS accounting guideline. Once they have been
transmitted from the separate financial statements to the consolidation system, they are
subjected to an automated plausibility review in relation to accounting-specific contexts and
dependencies. Any errors or warning messages generated by the system during this validation
process must be addressed by the person responsible for the separate financial statements
before the data are transmitted to the consolidation facility.
The processes and controls used in the preparation of the consolidated financial statements
include the completeness check of the consolidation group, verification of punctual, complete
and correct data submission, avoidance of undesirable data changes and a complete and error-
free execution of typical consolidation steps. The latter are subjected to system-based and
manual controls. The automated plausibility reviews (validations) apply to the consolidation
measures similarly as they are intended for the separate financial statement data.
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
92
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

IT security
To warrant the security of the group’s information technology systems (IT), access to the
accounting-related IT systems is regulated. Access authorisations are centrally managed and are
subject to customary approval mechanisms. Each company included in the consolidated
financial statements is subject to the regulations concerning IT security. These regulations are
summarised in an IT security guideline, with group-wide compliance being monitored by the
Internal Audit unit.
Reporting on RMS and ICS
All insights gained in the context of RMS, ICS and CMS reporting are added to the GRC
reporting. It provides an overall view of the opportunity and risk situation of our company and
an assessment of the effectiveness of the measures taken. The GRC report includes:
the assessment of the management of METRO AG regarding the effectiveness of the
governance management subsystems,
the opportunity and risk profile of METRO, and
the recommendations on risk steering measures and the optimisation of the governance
approach
The Management Board regularly informs the Supervisory Board and the Audit Committee about
issues relating to the management of opportunities and risks. Twice a year, the Supervisory
Board is provided with a written report on the organisation and focus of the RMS and ICS as well
as the current opportunity and risk situation.
In the event of sudden, serious risks to the net assets, financial position or earnings position,
an ad hoc reporting system is used to ensure that the Management Board of METRO AG receives
all necessary information directly and without delay.
Monitoring and improvement of the RMS and ICS
The Supervisory Board of METRO AG is responsible for monitoring the governance management
systems in accordance with § 107 Section 3 of the German Stock Corporation Act (AktG). GRC
reporting in particular enables the Supervisory Board to fulfil its duties. In accordance with the
requirements of the German Corporate Sector Supervision and Transparency Act (KonTraG), the
external auditor periodically assesses the company’s early-warning system. The results of this
audit are presented to the Management Board and the Supervisory Board.
Key elements of internal monitoring include effectiveness checks performed by Internal Audit
based on risk-oriented annual audit planning as well as self-assessments of the management
systems by the local management.
The Group Governance department has implemented monitoring controls for RMS and ICS,
which are performed by Group Governance and documented in the central IT tool myGRC. One
of these controls involves the annual systematic evaluation of all findings gathered throughout
the year, such as those arising from audit results, findings of external auditors and feedback
from users. In this way, the management systems are continuously improved.
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
93
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Description of the opportunity and risk situation
METRO has numerous opportunities for a sustainable positive development of its business. On
the other hand, there are risks that could impact us in reaching our goals. We have allocated the
METRO opportunity and risk portfolio to various subject groups. The Management Board of
METRO AG identified and assessed the following risks which are considered to be particularly
relevant for METRO. They are listed in the following overview:
Subject group
No.
Particularly relevant risks
2019/20
Loss potential
Probability of
occurrence
Risks related to the
business environment
#1
Risks from Covid-19
(new)
Significant
Probable
#2
Macroeconomic and
political risks
Moderate
Possible
#3
Interruption of
business activities
Major
Low
Environmental risks
#4
Sustainability risks
Minor
Probable
Sector-specific risks
Risks related to the
retail business
#5
Challenged business model
Significant
Possible
Real estate risks
#6
Real estate risks
Moderate
Possible
Risks related to business
performance
Supplier and product
risks
#7
Quality risks
Major
Low
Financial risks
#8
Financial risks
(new)
Major
Possible
Other risks
Transaction risks
#9
Risks from completed
transactions
Major
Possible
#10
Trade regulations
Moderate
Probable
#11
More stringent regulation
pertaining to deferred
remuneration
Moderate
Possible
Legal and tax risks
#12
Tax risks
Moderate
Possible
Risk no. 1 ‘Risks from Covid-19’ was newly included, as it represented a major risk for METRO in
the reporting period due to the loss potential and the probability of occurrence.
The risk ‘Planning reliability’ from the previous year is reported this year together with the
newly included risk no. 8 ‘Financial risks’. This year, risk no. 9 ‘Risks from completed transactions’
also includes the risks associated with the disposal of the hypermarket business, which were
listed in risk no. 9 in the previous year.
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
94
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Opportunities and risks related to the business environment
Opportunities in connection with Covid-19
Despite the significant impact of the Covid-19 pandemic on our HoReCa customers and the
resulting decline in sales, there is a significant opportunity for METRO to emerge stronger. This is
because METRO is distinguished from its competitors by a diversified business model and strong
capital resources. Especially smaller competitors that are solely based on delivery sales are
strongly affected by the Covid-19 pandemic due to the high HoReCa share of sales and limited
financial possibilities. METRO has the opportunity to actively consolidate the market and gain
market share. The pandemic has also changed consumer behaviour and boosted the
convenience trend, which has a positive impact on our Traders customer group and Traders
franchise business. METRO has also intensified strategic B2B partnerships with online food
retailers such as SberMarket (B2B2C) in Russia or Zakaz in Hungary and Ukraine during this
period and thus has the opportunity to benefit from future growth of these companies.
Digitalisation has been accelerated by the Covid-19 pandemic and the importance of digital
solutions for HoReCa and Traders customers has increased accordingly. As part of its Wholesale
360 strategic approach, METRO offers its customers sustainable solutions with superior
economic added value through Hospitality Digital and METRO MARKETS. The goal is to
strengthen customer loyalty in the long term, to further expand customer relationships and
thereby increase the share of wallet. Moreover, a faster recovery of our customers’ economic
situation through successful government intervention would also have a positive impact on
METRO.
Risks from Covid-19 (#1, new)
The global spread of Covid-19 and the associated lockdown measures had a significant impact
on the operational business of METRO in the second half of the reporting period. While at the
beginning of the Covid-19 pandemic the decline in HoReCa sales was still compensated by SCO
sales, the government-ordered closure of HoReCa operations and the economic downturn led to
METRO recording significant sales losses in March, April and May compared to the same period
of the previous year. Since the restrictions were eased over the summer 2020, sales have
recovered significantly, but due to the increase in infection figures since October and the
renewed restrictions, a negative sales development has become more likely again. On the
supplier side and in the supply chains, there may still be a shortage of inventories, irregular
deliveries or even deteriorating purchasing conditions. We also hold real estate in our portfolio
and lease some of it to third-party tenants. Political measures and a deterioration in the financial
situation of tenants may lead to rent losses and, in addition to the scenarios listed under risk no.
6 ‘Real estate risks’, to a deterioration in the financial situation of tenants. In order to counter the
risks arising from a potential further spread of Covid-19 in a timely and comprehensive manner,
we are systematically monitoring political measures and assessing the current pandemic
situation. To this end, we have set up a crisis team at group level, which is responsible for the
ongoing exchange of all relevant information and timely reporting. Furthermore, a large number
of centralised and decentralised measures were initiated to support the operational business,
such as campaigns to reopen the hospitality industry in several countries, advice and assistance
for implementation of hygiene concepts, the provision of digital solutions, for example for guest
registration in the hospitality industry, and selective opening of stores to end consumers.
Furthermore, the hygiene standards of METRO’s internal processes in the stores and at the point
of delivery have also been subjected to a critical review from a Covid-19 perspective. Thus we
are protecting our customers and employees, securing the liquidity of the group by reducing
costs and supporting our customers’ businesses.
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
95
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Opportunities from the development of business and political conditions
An improvement in the economic and political environment worldwide or in countries where
METRO is present, as well as improvements in free trade, could have a positive impact on sales,
costs and earnings. METRO operates in a large number of markets where we could potentially
benefit from these developments. Opportunities could arise from a sustained positive
geopolitical and macroeconomic development, for example, in the form of a recovery of foreign
exchange rates.
Macroeconomic and political risks (#2)
As a company with global operations, METRO depends on the political and economic situations
in the countries in which the group operates. The fundamental business environment can change
rapidly. Changes in political leadership, civil unrest, terrorist attacks or economic imbalances can
jeopardise METRO’s business. At the country level, the political and/or economic situations in
Russia, Ukraine and Turkey are particularly noteworthy for the reporting period. The potential
risks include the loss of property and real estate assets, changes in the exchange rate, product
restrictions, capital controls, regulatory restrictions and unexpected weakening of demand. The
global economy is increasingly marked by tense trade relations between the USA, Europe and
China, as can be clearly seen in the expansion of the imposed punitive tariffs, as well as the
approved withdrawal of the United Kingdom from the European Union (Brexit). We consider
both issues risks. A continuous monitoring of the economic and political developments and a
review of our strategic objectives allow us nonetheless to respond to these challenges in a
timely and appropriate fashion. Our international presence comes with the advantage of being
able to reduce the economic, legal and political risks as well as fluctuations in demand through
diversification.
For more information about our assessment of the development of the economic environment, see chapter 4 report
on events after the closing date and outlook
page 84 .
Interruption of business activities (#3)
Our business operations could, for example, be compromised and/or interrupted by a failure of
IT systems, natural disasters or pandemics. Important business processes such as purchasing/
product ordering, marketing and sales rely on IT systems. Systems for online retailing must be
continuously available, as these systems are a prerequisite for unlimited access outside normal
store opening times. As a result, the continuous availability of the infrastructure is a critical
factor in the development and implementation of our IT solutions. Systems that are essential for
business operations in the stores, especially checkouts, are largely self-contained and can
continue to be used for some time even during events such as network failures or the failure of
central systems. In case of partial network failures, they can automatically reroute data or switch
to redundant routes.
Centralised IT systems can be quickly restored to operational readiness if one or more servers
fail. We operate several central IT centres, which enables us to compensate for major business
interruptions or reduce their duration to the absolute minimum. We also have a disaster recovery
plan to restore IT centres in Germany after extended outages (for example outages caused by
fire, natural disasters or criminal actions).
We are also fully prepared for the risk of an interruption of our business activities by
employing a comprehensive business continuity management system. A professional crisis
management allows for a rapid crisis response and thereby ensures the protection of our
employees and customers. This includes evacuation plans, training measures and specific
instructions. We insure ourselves against the loss of tangible assets and any impending loss of
sales or profits resultant from business interruptions wherever it is possible and reasonable.
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
96
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Environmental opportunities and risks
Opportunities from sustainable business practices
Our company is more exposed than ever to economic, environmental, social and cultural
challenges. Similarly, we experience that sustainability is the key to transforming these
challenges into opportunities. METRO operates an active sustainability management system in
order to enshrine sustainability systematically and organisationally in its core business. Our
stakeholders evaluate the measures implemented by us, for example, through ratings.
Sustainability risks (#4)
The consumption of energy and other natural resources affects our operating costs and may
have a negative impact on the environment, for example through the emission of climate-
damaging greenhouse gases. National regulations aimed at reducing the climate impact of
accumulated energy and fuel consumption could lead to higher energy price levels (for example
for electricity, gas, fuel) and thus to higher overall energy costs for METRO. In particular, the
levies under the German Combined Heat and Power Act (KWKG) and the German Renewable
Energy Sources Act (EEG) are increasing year after year. These additional price components
alone have caused our energy costs to rise compared to the previous year. We continue to
assess the risk of further increases in energy prices as a result of a possible CO2 price increase
as probable. The climate target previously defined by METRO, which was expanded by the
supply chain in 2019, will help to minimise this risk.
For more information about our social responsibility and environmental protection activities, see chapter 2
principles of the group – 2.4
page 44 combined non-financial statement of METRO AG
page 44 .
Sector-specific opportunities and risks
Retail business
Opportunities from innovations and digitalisation
METRO is focused on identifying and addressing current and future challenges of its customers
at an early stage in a constantly changing environment. In this case, innovations and
digitalisation are areas with excellent potential for realising increases in value. We are convinced
that the consistent implementation of innovative ideas relating to the progressing digitalisation
will increasingly shape the future of the wholesale and retail industry. This may give rise to new
business models, which in turn may present a variety of opportunities.
In order to exploit the opportunities derived from digitalisation and to realise synergies, we
are bundling our corresponding initiatives with the business units Hospitality Digital and
METRO-NOM. The focus on the core customer groups HoReCa and Traders is a key component
of our digitalisation strategy, which we use to provide our customers with digital solutions such
as the DISH (Digital Innovations and Solutions for Hospitality) platform. With Hospitality Digital,
we see significant opportunities to benefit from faster digitalisation in the HoReCa and Traders
sectors as well as in other business areas. The Covid-19 pandemic is motivating our customers to
accelerate their digitalisation efforts. With our METRO-NOM business unit, we continue to
digitalise our core business. METRO-NOM develops, optimises and supports all digital solutions
used by our customers. METRO-NOM is also developing internal digital solutions, for example, to
improve the efficiency of our logistics processes. These digital solutions provide opportunities
for METRO to set itself apart from the competition.
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
97
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Opportunities from customer focus
Customer focus and customer satisfaction are central elements of our strategy. In order to
continuously measure and consistently improve customer satisfaction, we have implemented the
Net Promoter Score across the board in 24 countries in which METRO is represented with
wholesale stores. Besides the purely quantitative measurement of the current satisfaction values,
suggestions from customers can be systematically recorded and evaluated. This will allow
further potential for improving the shopping experience and supply as well as general consumer
trends to be identified. In line with our omnichannel strategy, we are expanding our delivery
sales and strengthening our online activities. With Wholesale 360, our goal is to become the
partner of choice for our customers by offering METRO solutions that cover all aspects of their
business. We are also intensifying our competitive analyses. Our various strategic projects aim at
further improving our purchasing and sales processes and at creating additional value for our
customers. The goal is to ensure the ongoing value of assets, thereby mastering the challenges
faced by our business model. As a wholesale specialist, we want to further increase our
customer focus, accelerate our growth, simplify our structures and increase the implementation
speed. We are thus striving to increase our overall operating performance.
Challenged business model (#5)
Particularly, the retail and wholesale trade in the markets in which we operate is characterised
by rapid changes and fierce competition. A significant risk is consumers’ fluctuating propensity
to consume. Changes in consumer behaviour and customer expectations pose additional risks,
among others, in the face of demographic change, rising competition and increasing
digitalisation. If we fail to adequately address our customers’ needs and price developments or if
we miss trends with regard to our assortments or appropriate sales formats and new sales
channels, this could potentially impede the development of our sales and income and also
jeopardise our objectives in terms of growth and profitability.
We counteract these risks in various ways. On the one hand, we develop country-specific
value creation plans, which are geared to local conditions and customer needs and are
supported and monitored in their implementation by our operating partners and international
working groups (federations). On the other hand, with our Wholesale 360 strategy we are
actively working on expanding our business model from transactional sales of goods to a holistic
partnership that addresses all the needs of professional customers. Examples include the
platform business of METRO MARKETS, the numerous initiatives for the digitalisation of our
customers bundled on dish.co and the financial services under GastroFinanz.
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
98
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Real estate
Opportunities from increase in value
We see potential for value increases in possible development projects for our existing real estate
assets and other properties as well as in improved facility management.
Real estate risks (#6)
Loss of rental income caused by insolvencies of third-party tenants and vacancies due to unused
selling space entail the risk of a deficient rental cover or an impairment of usufructuary rights.
Delayed repair and maintenance work could lead to infringements and real estate impairments
as well as reputational damage.
We counter these risks with our strategic and operational real estate management. To this
end, we regularly evaluate properties in terms of value and income and perform projected
investment planning. The safety and health of customers, suppliers and employees could be
endangered by deficiencies in the properties. We take decisive action to prevent potential
accidents and damage to health, thus ensuring a safe and healthy environment. In addition, we
conduct risk assessments and specify clear sets of rules and procedures. We support
implementation through frequent training, internal controls such as regularly scheduled safety
and occupational safety inspections as well as external controls such as stability inspections.
Opportunities and risks related to business performance
Suppliers and products
Opportunities from responsible trading
Not only for us, but also for more and more customers, the environmental and social
sustainability of the products we offer and their production process play an increasingly
important role, in addition to quality and safety. We aim to ensure socially acceptable working
conditions within our sourcing channels. For this purpose, METRO adopted a group-wide
purchasing policy for a sustainable supply chain and procurement management that applies to
all products.
For more information about our social responsibility and environmental protection activities, see chapter 2
principles of the group – 2.4 combined non-financial statement of METRO AG
page 44 .
Opportunities from higher own-brand penetration
Own brands are a central part of METRO’s strategy to increase the success of our customers. By
offering own brands, we can provide high quality at relatively low prices, thus simultaneously
increasing our customers’ profitability as well as our own. Potential economic constraints and
increased price pressure on our customers, for example as a result of the Covid-19 pandemic,
could increase demand for own brands and thus have a positive effect on METRO’s profitability.
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
99
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Quality risks (#7)
As a wholesale company, METRO depends on external producers and service providers.
Defective or unsafe products, exploitation of the natural environment, inhumane working
conditions or infringements against our compliance standards could potentially cause major
damage to the reputation of METRO and pose a lasting threat to the company’s success. We
therefore continuously audit our suppliers to assess their adherence to METRO’s stringent
procurement and compliance standards. These include the food safety and quality standards
recognised by the Global Food Safety Initiative (GFSI), such as the International Food Safety
Standard and the GLOBALGAP certification for agricultural products. They contribute to the
safety of foods on all cultivation, production and sales levels. In order to be able to operate as a
METRO own-brand supplier on a preliminary basis without a recognised and valid audit
certificate, the supplier must pass a special test (METRO Assessment Solution) conducted by an
accredited certification body. Violations of conditions can lead to exclusion from our supplier
network or, in the case of unacceptable production methods, to a product being blacklisted. If
suppliers do not provide a corresponding certificate, it jeopardises the due diligence of METRO
towards the customer. Potentially non-safe products on the market which are unsuitable for
human consumption or use or even harmful to health represent a very high reputation risk and
comprise the threat of lasting damage to customer relationships. Should a quality incident occur
despite these measures, the process steps for resolving interruptions and incidents described in
our manual will set out the procedure to react to the incident in the interest of our customers.
We also continuously identify potential improvements to our quality assurance systems and
implement them.
Financial opportunities and risks
Financial risks (#8, new)
Financial risks were newly included in the opportunity and risk profile this year. This includes the
risk ‘planning reliability’, which was previously listed separately. Unexpected deviations from the
budget or the outlook could potentially result in METRO missing its budget targets and making
wrong business decisions. This could lead to unexpected negative financial consequences. We
therefore place high priority on measures designed to mitigate these risks. In order to minimise
risks, we are consistently implementing strategic measures aimed at improving our financial
result. We support the operational units in their proactive implementation of the strategy by
providing them with value creation plans. We also mitigate risks by conducting effective internal
controls, close interlocking of strategic planning and the budgeting process as well as strong
involvement of the supervisory bodies. The fact that our financial year differs from the calendar
year allows us a high degree of planning certainty at an early stage, with the profitable
Christmas quarter being the first quarter of our financial year. Furthermore, potential
insolvencies of commercial banks and customers represent a financial risk. In order to minimise
the risk of bad debts, we monitor the ratings and credit spreads of counterparties on a daily
basis in addition to the receivables portfolio. At the same time, we reduce the default risk to a
minimum by distributing cash pooling among several parties (diversification) and by using
standard scoring and limit authorisation tools.
For more information about financial risks and their management, please see the notes to the consolidated financial
statements in no. 44 – management of financial risks
page 242 .
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
100
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Other opportunities and risks
Opportunities from portfolio simplification and efficiency improvements
The country portfolio is regularly reviewed with regard to the feasibility of a local market
leadership and the attractiveness of the respective markets. Through the disposal of Real in
Germany and the majority shareholding in METRO China, METRO has successfully completed its
transformation into a focused wholesale company. Further portfolio adjustments cannot be ruled
out in the future. We have successfully completed numerous transactions in recent years and can
benefit from this experience. In the future, however, METRO will focus on investments to
strengthen its wholesale business and secure further market shares. The focus on wholesale
could lead to improved workflows along the value chain faster than expected and could have a
positive effect on our business development through an increase in operating efficiency. In
addition to focusing on the wholesale business, partnerships such as the one between METRO
and Wumei in China can lead to additional innovations. Collaborations can help us reduce
operational cost or give our customers access to innovative food products. For example, we
participate in various food start-ups through NX-Food.
Opportunities from company acquisitions
Great potential for increases in value may arise from selected acquisitions, particularly in
business segments of strategic importance. Following the completed transactions of METRO
China and Real, METRO’s liquidity situation is excellent and provides room for company
acquisitions. We see opportunities in further expansion of our core business, for example
through acquisitions in the delivery business, as well as in reinforcing our B2B e-commerce
activities. The existing minority interests held by METRO offer the opportunity for additional
increases in value if, for example, start-up companies were to develop faster and better than
expected. We also want to solidify and expand the leading position our company has already
attained in numerous markets. We expect that the consolidation of the wholesale stores in many
of our portfolio countries will be intensified by the Covid-19 pandemic. Our goal here is to gain
market share and, where appropriate, to take over individual locations of competitors and thus
actively advance market consolidation.
Risks from completed transactions (#9)
This year, the risks from completed transactions for company acquisitions and disposals also
include the risk associated with the disposal of the hypermarket business, which was listed
separately in the previous year, and the risks in connection with the disposal of METRO China
and other subsequent liability risks from completed sales of companies from previous years.
Consequently, we now assess the overall risk as more probable than in the previous year and
have arrived at an evaluation of the probability of occurrence as ‘possible’ rather than ‘unlikely’
as in the previous year. In connection with the disposal of the hypermarket business, the risks
mainly consist of residual costs that will continue to be incurred after the sale and may not be
sufficiently offset by proceeds from continuing operations to cover these costs, and potential
results from the final determination of the purchase price or the utilisation of guarantees.
Examples of residual costs are the loss of purchasing synergies and the temporary
underutilisation of METRO LOGISTICS, which will only be realised in the medium term due to
transitional agreements. During this transitional period, the development of third-party business
is planned in order to utilise the capacity of METRO LOGISTICS.
The demerger of the former METRO GROUP was concluded on 13 July 2017 with the initial
listing of METRO AG shares on the stock exchange. The former METRO GROUP has split into a
wholesale specialist (the new METRO AG) and a company focused on consumer electronics and
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
101
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

services (CECONOMY AG, formerly METRO AG). The demerger may be subject to additional
legal risks, adding to the tax risks inherent in the implementation; in detail, these risks are:
Continuing liability for all liabilities of CECONOMY AG occurring on the effective date of the
demerger/spin-off for a period of 5 years
Liability risks stemming from legal claims by shareholders of the former METRO AG in relation
to the demerger, for which METRO AG has agreed to absorb the costs under the demerger
agreement
We are continuously monitoring the financial position of CECONOMY AG. We are preparing for
any potential complaints by way of legal defence strategies.
Information technology
Opportunities from master data
A reliable basis with regard to data quality leads to an improved understanding of customer
needs and thus offers great potential for opportunities. Among other things, digital solutions
from Hospitality Digital (online reservation tool, internet presence) generate master data that
contribute to this data basis. In order to seize these opportunities, METRO is developing end-to-
end master data solutions for customer master data and has also purchased a professional
product information system, which will be introduced in all countries in the next few years. These
solutions will ensure data reliability and support all distribution channels in the future.
Legal and tax risks
Trade regulations (#10)
The European Union and national governments are increasingly adopting or amending
regulations to regulate trade that could affect our business. The EU directive on unfair trading
practices was adopted in April 2019 and must be adopted into national law by April 2021.
Further restrictions of local law are expected in EU countries in this context. Among other
things, the European Parliament is discussing the proposal to ban procurement cooperations. In
the Corporate Public Policy department, we collect, discuss and analyse important social,
regulatory and political issues in order to represent our interests at the political level through
responsible lobbying. We take increasing legal requirements into account by regularly revising
regulations.
More stringent regulation pertaining to deferred compensation (#11)
Besides purchase price agreements, we enter into agreements on so-called subsequent
remuneration with the suppliers. They include purchasing conditions, for example in the form of
product-specific deferred rebates, cost reimbursements or payments for services such as
specific customer data analyses.
For the last few years, we have observed that agreements on subsequent compensation
between buyers and suppliers have been subjected to increased regulatory restrictions. This is
mainly the case in Eastern Europe, but also in other countries in which METRO operates. Russia,
in particular, is affected by a decline in subsequent compensations. Some restrictions mean that
certain conditions are completely prohibited. At the same time, antitrust law is used to regulate
conditions to the detriment of retailers and wholesalers , as it is presumed that they have market
power.
We continuously and systematically monitor the risks arising from increasing regulation
regarding subsequent compensation. We address these regulation trends in a preventative
approach by adapting our contractual relationships with suppliers in the relevant jurisdictions
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
102
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

and/or in relation to certain product categories to the respective developments. This allows us
to ensure that any subsequent benefit arrangement complies with the applicable laws at all
times. We also take care to appropriately provide for the respective limitation periods under civil
law. As part of an ongoing monitoring programme, we analyse historical condition structures
and update the current remuneration agreements based on these findings where it is deemed
necessary. Without active management, there would be a risk that added value in the form of
subsequent compensation in selected product groups and/or individual countries could no
longer or only partially be collected as a result of changes to the regulatory framework. This
could have a corresponding negative impact on the total comprehensive income of our
company.
For more information about legal issues, see the notes to the consolidated financial statements in no. 49 – remaining
legal issues
page 263 .
Tax risks (#12)
Tax risks can primarily arise in relation to the assessment of financial matters by the tax
authorities (including transfer price issues). Additional risks may result from differing
interpretations of sales tax (VAT) regulations. In order to identify and minimise tax risks at an
early stage, METRO AG has issued a group tax guideline, which is continuously monitored by the
Corporate Group Tax department to ensure that it is up to date and properly implemented.
These risks are regularly and systematically examined and assessed. Increasing tax requirements
are taken into account in the regular revision of regulations. Moreover, an internal control system
for the sales tax process was established and already implemented for German companies; the
roll-out process to other national subsidiaries was initiated in financial year 2019/20.
Management’s overall assessment of the opportunity and risk situation
The Management Board and the Supervisory Board of METRO AG are regularly informed about
the company’s situation in terms of opportunities and risks. To evaluate the present risk
situation, we did not examine opportunities and risks in isolation. Instead we analysed and rated
the interdependencies between risks according to probability and impact. Our assessment
indicates that the overall risks can be borne or managed. For a period of 1 year after the closing
date, the identified individual and cumulative risks do not represent any risks that could
jeopardise the continued existence of the company in the form of possible illiquidity or over-
indebtedness. We are confident that METRO’s earnings performance offers a solid foundation for
the sustainable positive development of our business and the utilisation of numerous
opportunities. The Management Board of METRO AG currently does not expect any fundamental
change in the opportunities and risk situation.
C O M B I N E D
M A N A G E M E N T  R E P O R T
5  O P P O R T U N I T I E S  A N D  R I S K  R E P O R T
103
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

6 REMUNERATION REPORT
The remuneration report describes the remuneration system for the Management Board and the
Supervisory Board in accordance with the statutory provisions of the German Commercial Code
8 and
the recommendations of the German Corporate Governance Code. It depicts the remuneration amount
of the members of the Management Board and the Supervisory Board in individualised form and
according to remuneration components. The report also complies with the applicable accounting
standards for capital market-oriented companies according to GAS and IFRS.
The Supervisory Board of METRO AG decides on the remuneration system for the
Management Board and reviews it on a regular basis. The Presidential Committee, chaired by the
Chairman of the Supervisory Board, prepares the proposed resolutions for the full Supervisory
Board. The remuneration system based on financial year 2019/20 was approved by the
Supervisory Board on 2 March 2017, confirmed on 31 August 2017 and adjusted on
14 November 2017 with regard to the financial performance targets for the short-term incentive
from financial year 2017/18. The Annual General Meeting on 16 February 2018 approved the
existing remuneration system with 83.18% of the cast votes.
The remuneration system for members of the Management Board
The agreed remuneration of the members of the Management Board is made up of
a fixed salary,
a short-term variable remuneration,
a long-term variable remuneration,
a post-employment benefits plan as well as
other non-monetary and supplemental benefits.
8 For financial year 2019/20, the German Corporate Governance Code in the version dated 7 February 2017 was applicable. References to the German Corporate Governance Code relate
to this version.
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
104
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

THE REMUNERATION SYSTEM FOR MEMBERS OF THE MANAGEMENT BOARD
Schematic diagram – percentage of the target values of fixed and variable remuneration.  
The percentage distribution may occasionally be subject to slight differences.
Annual fixed  
salary
Based on like-for-like 
sales growth (40%), 
EBITDA (40%) and  
RoCE (20%)
Performance share 
plan with TSR and 
EPS components
For example, 
pensions, 
company cars
Fixed salary
~ 33%
Total remuneration
Variable remuneration
Short-term  
variable  
remuneration
~ 27%
Long-term  
variable  
remuneration
~ 40%
Non-monetary 
and supplemental 
benefits
Total remuneration and the individual remuneration components are geared appropriately to the
responsibilities of each individual member of the Management Board, his or her personal
performance and the company’s economic situation. They fulfil legal stipulations regarding
customary remuneration. The performance-based variable remuneration serves as an incentive
for the Management Board to increase the company’s value and is designed to generate
sustainable, long-term corporate development.
According to the recommendation of the German Corporate Governance Code, the
remuneration for each member of the Management Board is limited in individual amounts; in
each case with regard to the individual remuneration components and also in aggregate (total
payout cap). The upper threshold of remuneration for a financial year is set as follows for
financial year 2019/20: €8,034,800 for Mr Koch, €4,048,600 for Mr Baier, €3,126,000 for Ms
Euenheim, €4,040,000 for Mr Gasset and €4,065,000 for Mr Poirier. For Mr Hutmacher, whose
employment contract ended on 31 December 2019, the maximum amount was €6,043,600 and
for Mr Palazzi, whose employment contract ended on 31 May 2020, it was €4,228,600.
Insofar as a member of the Management Board negligently or intentionally violates his or her
duties and the company incurs a loss damage as a result, the Supervisory Board has the right to
withhold payment of the remuneration of this member of the Management Board in full or in
part. A so-called holdback (malus)/clawback clause (retention/repayment agreement) was
agreed with Mr Gasset and Mr Poirier upon conclusion of their employment contracts. The clause
provides for the retention or recovery of payments made in the past from variable remuneration
components. Payments from short-term variable remuneration and long-term variable
remuneration are generally only made after the performance targets have been met and the
performance period has ended. Without prejudice to this, a reduction of future payments to be
paid in the event of a deterioration of the company’s position according to § 87 Section 2 of the
German Stock Corporation Act (AktG) remains.
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
105
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Fixed salary
The fixed salary is contractually set and is paid in monthly instalments.
Short-term variable remuneration (short-term incentive, STI)
The short-term incentive remunerates the company’s operating performance on the basis of
financial performance targets pertaining to that specific financial year.
A target value is set for each member of the Management Board. The payout amount is
calculated by multiplying the target value by the factor of overall target achievement. This, in
turn, is calculated by determining the target achievement factors for each of the financial
performance targets. The weighted arithmetic mean of the individual factors results in the
overall target achievement factor. The overall target achievement is limited to a factor of 2.0.
SHORT-TERM INCENTIVE
Target amount
Performance targets
Schematic diagram.
The short-term incentive for financial year 2019/20 is based on the following parameters of the
group:
like-for-like sales development (sales growth in local currency related to a comparable area or
a comparable portfolio of stores or distribution concepts such as delivery and online
business) at 40%,
exchange rate-adjusted earnings before deduction of interest expenses, taxes, depreciation/
amortisation (EBITDA), excluding real estate transactions and transformation costs, at 40%,
exchange rate-adjusted Return on Capital Employed (RoCE), excluding real estate
transactions and transformation costs, at 20%,
in each case based on the target amount.
For more information about the key performance indicators, see chapter 2 principles of the group – 2.2 management
system
page 42 .
In general, performance targets are set by the Supervisory Board for each of the 3 parameters
before the beginning of the financial year. The basis for determining the targets is the budget
plan, which requires the approval of the Supervisory Board. To determine whether a target has
been achieved, the Supervisory Board defines a lower threshold/entry hurdle for each
performance target and a target value for 100% target achievement. A factor is allocated to the
specific degree of target achievement for each performance target:
If the degree of target achievement is 100%, the factor is 1.0.
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
106
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

SHORT-TERM INCENTIVE – PAYOUT
CALCULATION
0
0.50
1.00
1.50
2.00
2.50
0%
50%
100%
150%
200%
If the degree of target achievement is lower or equal to the entry hurdle, then the factor is
0.0.
In the case of intermediate values and values over 100%, the factor for target achievement is
calculated using linear interpolation and/or extrapolation.
To determine whether the EBITDA target has been achieved, the Supervisory Board is
authorised to adjust the EBITDA for any possible impairment losses on company value.
To ensure the individual performance orientation of Management Board remuneration, the
Supervisory Board reserves the general right to reduce or increase the individual short-term
incentive by up to 30%. The basis for this are targets that were agreed individually with the
respective members of the Management Board as well as overlapping strategic targets for all
members of the Management Board, such as customer satisfaction, employee satisfaction and
sustainability in the context of the group’s overall strategy.
The payout amount of the short-term incentive is limited to a maximum of 200% of the
individually determined target value (payout cap).
The short-term incentive of the members of the
Management Board is generally payable 4 months
after the end of the financial year, but not before
approval of the annual and consolidated financial
statements by the Supervisory Board for the
financial year for which the incentive was agreed.
No payments were made under the regular
short-term incentive for financial year 2019/20.
In addition, the Supervisory Board may grant
special bonuses to members of the Management
Board for exceptional performance. Mr Koch and
Mr Baier were paid a corresponding special bonus
for the sale of a majority shareholding in METRO
China in the reporting year.
Long-term variable remuneration (long-term
incentive, LTI)
The long-term variable remuneration incentivises
the company’s long-term and sustainable
corporate development, taking into account the internal and external value development as well
as the concerns of the shareholders and the other stakeholders associated with the company.
Performance share plan (since financial year 2016/17)
The annual tranches of the performance share plan and their associated performance targets are
generally based on a multi-year assessment. The performance period is usually 3 years. The
payout amount is limited to a maximum of 250% of the individually determined target value
(payout cap). In case of employment termination of a member of the Management Board before
the end of a performance period, separate rules for the payout of the tranches have been agreed
upon.
Each member of the Management Board is initially allocated conditional performance shares.
Their amount corresponds to the quotient of the individual target amount and the arithmetic
mean of the share price of the company’s ordinary share upon allocation. The decisive factor
here are the average Xetra closing prices of the company’s ordinary share over a period of 40
consecutive stock exchange trading days immediately after the Annual General Meeting of the
company in the year of the allocation.
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
107
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The performance period ends after the 40th stock exchange trading day following the Annual
General Meeting in the 3rd financial year following the issuance of the tranche. After the
performance period of a tranche, the final number of performance shares is determined, which
depends on the achievement of 2 performance targets, which are weighted equally in the target
amount of the performance share plan:
Earnings per share (EPS),
Total shareholder return (TSR).
LONG-TERM INCENTIVE
Number of 
allocated  
performance 
shares
Target 
amount
50% TSR  
(compared  
to the MDAX 
and defined  
competitors)
50% EPS
Final number of performance 
shares based on target 
achievement
Performance period 
(3 years)
Schematic diagram.
FY n
FY n + 1
FY n + 2
FY n + 3
ø share 
price plus 
dividends
Payment in 
cash
(payout cap: 
250% of the 
target 
amount)
Final number 
of  
performance 
shares
ø share
price
For the EPS component, the Supervisory Board generally decides at the beginning of the
financial year in which the tranche of the performance share plan is granted on a lower
threshold/entry hurdle for target achievement and an EPS target value for 100% target
performance for the 3rd financial year of the performance period. A factor is allocated to the
specific degree of target achievement:
If the degree of target achievement at the end of the performance period is 100%, the factor
is 1.0.
If the degree of target achievement is lower or equal to the entry hurdle, then the factor is
0.0.
In the case of intermediate values and values over 100% up to a maximum of 300%, the factor
for target achievement is calculated using linear interpolation and/or extrapolation.
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
108
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

DETERMINING THE TARGET ACHIEVEMENT OF
THE EPS COMPONENT
0
EPS performance
1.00
2.00
3.00
4.00
0%
300%
250%
200%
150%
100%
50%
The target achievement factor of the TSR
component is measured by the development of
the total shareholder return of the company’s
ordinary share in the performance period relative
to a defined benchmark index and to a defined
peer group – half against the development of the
MDAX TSR and half against the development of
the average TSR of a defined peer group of
competitors over the same period as the TSR of
the company. The TSR value of the peer group of
the competitors is determined individually for the
members of the peer group and then the
arithmetic mean is established. The peer group of
competitors, which is in line with the Wholesale
360 approach, is composed of the following
companies: Bidcorp, Bizim Toptan, Marr, Eurocash
Group, Performance Food Group, US Foods, Sysco
and Sligro. Only companies that are listed for the entire performance period are included in this
group. If TSR values are available for fewer than 6 companies in this peer group, then the
METRO TSR will be exclusively compared with the MDAX TSR – and the comparison with the
peer group will not apply.
For the TSR component, the Supervisory Board also usually establishes a lower threshold/
entry hurdle and a TSR target value for the 100% target achievement at the beginning of the
financial year in which the tranche of the performance share plan is granted.
To determine the target achievement, the Xetra closing prices of the company’s ordinary
share are determined over a period of 40 consecutive stock exchange trading days immediately
after the Annual General Meeting of the company in the grant year of the tranche. This is used to
establish the arithmetic mean, which is known as the starting share price. The performance
period for the respective tranche will begin on the 41st trading day following the Annual General
Meeting, or for the tranche granted in financial year 2016/17 on the 41st stock exchange trading
day following the initial listing of the ordinary share of the company. 3 years after the starting
share price has been determined and the tranche has been issued, the Xetra closing prices of the
ordinary share of the company will be determined over a period of 40 consecutive stock
exchange trading days immediately following the Annual General Meeting. This is used again to
establish the arithmetic mean, which is known as the closing share price. The TSR is determined
as a percentage on the basis of the change in the company’s ordinary share price and the total
amount of hypothetically reinvested dividends throughout the performance period in relation to
the starting share price.
The resulting TSR of the company is compared to the TSR of the 2 peer groups in the
performance period determined in the same way. A factor is allocated to the specific degree of
target achievement:
If the degree of target achievement at the end of the performance period is 100%, the factor
is 1.0. This requires an outperformance of 5 percentage points versus the peer groups.
If the degree of target achievement is lower or equal to the entry hurdle, then the factor is
0.0.
In the case of intermediate values and values over 100% up to a maximum of 300%, the factor
for target achievement is calculated using linear interpolation and/or extrapolation.
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
109
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

DETERMINING THE TARGET ACHIEVEMENT OF
THE TSR COMPONENT
TSR performance
0%
250%
200%
150%
100%
50%
300%
The target achievement factors of the EPS and
TSR components are used to form the arithmetic
mean that establishes the overall target
achievement factor. This is used to determine the
target number of performance shares, which
results in a cash payment at the end of the
performance period of the tranche:
If the total target achievement factor for both
components is 1.0, then the target number of
performance shares equals the number of
conditionally allocated performance shares.
If the total target achievement factor is 0.0,
then the number of performance shares
decreases to 0.
For all other target achievements, the target
number of performance shares is determined
by means of linear interpolation or
extrapolation.
The target number of performance shares is limited to a maximum of 300% of the conditionally
allocated number of performance shares.
The payout amount is calculated per performance share as follows: 3 years after the starting
share price has been determined and the tranche has been issued, the Xetra closing prices of the
ordinary share of the company will be determined over a period of 40 consecutive stock
exchange trading days immediately following the Annual General Meeting. This is used to form
the arithmetic mean and all the dividends paid during the performance period for the ordinary
share of the company are added to it. This so-called share factor is multiplied by the number of
calculated performance shares and establishes the gross payout amount.
The payout amount is limited to a maximum of 250% of the individually determined target
amount (payout cap).
The tranches of the performance share plan will be paid no later than 4 months after the
Annual General Meeting that decides on the appropriation of the balance sheet profit of the last
financial year of the performance period, but not before the approval of all annual and
consolidated financial statements for the financial years of the performance period by the
Supervisory Board.
The targets for the tranche of the performance share plan granted in financial year 2019/20
were set by the Supervisory Board based on the medium-term plan for financial year 2021/22,
which was submitted in September 2019. At that time, the Covid-19 pandemic was not
foreseeable. In light of the effects of Covid-19, the current medium-term plan for financial year
2021/22 also had to be adjusted in terms of earnings per share. Therefore, the Supervisory Board
resolved on 24 September 2020 to adjust the LTI tranche 2019/20 to the current medium-term
planning with regard to the target of the EPS component in order to mitigate the effects on the
remuneration of the Management Board and to maintain the incentive effect. Furthermore, the
TSR component was adjusted with regard to the composition and valuation of the competitor
peer group. The competitor peer group was reduced by the company Bizim Toptan and the
median is used instead of the arithmetic mean to determine the TSR value for the peer group.
This is also reflected in the revised remuneration system to be presented to the Annual General
Meeting in February 2021.
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
110
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Share ownership guidelines
Along with the performance share plan, share ownership guidelines were introduced. As a
prerequisite for the cash payment of performance shares, the members of the Management
Board are obligated for each tranche to build up a self-financed investment in ordinary shares of
the company by the end of February in the 3rd year of the performance period. The amount to
be invested per tranche for the Chairman of the Management Board is two thirds of his gross
annual fixed salary and for an ordinary member of the Management Board 50% of his or her
gross annual fixed salary. The plan aims to ensure that, after no more than 5 years of service, the
Chairman of the Management Board has invested 200% and an ordinary member of the
Management Board 150% of his or her gross fixed salary in ordinary shares of the company,
based on the calculated purchase price for the respective shares. The key factor for calculating
the purchase price and thus the number of ordinary shares to be acquired is the average price of
the Xetra closing prices of the company’s ordinary share over the 40 consecutive stock
exchange trading days immediately after the annual press conference, which takes place before
February in the 3rd year of the performance period. The purchase price corresponds to the
quotient of the amount to be invested, which results from the gross annual fixed salary and the
determined average price. If the personal investment to be made in ordinary shares of the
company is not, or not fully, met on the relevant closing date, the payout amount will initially be
paid out in cash, but with the obligation to invest it in ordinary shares of the company until the
share ownership guidelines are met.
Post-employment benefits plans
The members of the Management Board usually receive post-employment benefits plans in the
form of a direct commitment. The financing is provided jointly by the Management Board and
the company. This is based on an apportionment of ‘7 +14’. When a member of the Management
Board makes a contribution of 7% of his or her defined basis for assessment, the company will
contribute twice the amount. The assessment is based on the amount of the fixed salary and the
target amount of the short-term incentive. When a member of the Management Board leaves the
company before benefits become due, the contributions retain the level they have reached. This
component of post-employment benefits plans is insured on the basis of matching life insurance
policies by Hamburger Pensionsrückdeckungskasse VVaG (HPR). The interest rate for the
contributions is paid in accordance with the Articles of Association of the HPR with regard to
profit participation, with a guarantee applying to the paid-in contribution.
Entitlement to pension plans exists
if the employment ends with or after reaching the statutory retirement age in the German
statutory pension insurance,
as premature post-employment benefit if the employment ends after the age of 60 or after
the age of 62 for pension commitments granted after 31 December 2011 and before reaching
the regular retirement age,
in the event of disability or death, provided that the relevant conditions of eligibility are met.
Payment can be made in the form of a one-time capital payment, instalments or a life-long
pension. A minimum benefit is granted in the case of invalidity or death. In such instances, the
total amount of contributions that would have been credited to the member of the Management
Board for every calendar year up to a contribution period of 10 years, but limited to the point
when the individual turns 60, will be added to the benefits balance. This component of post-
employment benefits plans is not covered by life insurance policies and will be provided directly
by the company when the benefit becomes due.
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
111
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Arrangements differing from this form of post-employment benefits plans were agreed for Mr
Gasset, Mr Poirier and Mr Palazzi. They are granted company contributions to build up an
individual pension plan without having to make a personal contribution. These commitments
given to Mr Gasset, Mr Poirier and Mr Palazzi ensure that the company contribution does not
exceed 14% of the defined basis for assessment.
Furthermore, members of the Management Board have been offered the option of converting
future remuneration components in the fixed salary as well as in the variable remuneration into
post-employment benefits plans with Hamburger Pensionsrückdeckungskasse VVaG as part of a
tax-privileged remuneration conversion scheme.
The members of the Management Board have no further pension commitments beyond the
described retirement benefits. In particular, no retirement payments will be granted.
Further benefits in case of an end to employment
Severance payments in cases of premature terminations of management roles without good
cause are limited to 2 annual remunerations (severance cap) and must not exceed the
remuneration that would be paid for the remaining term of the employment contract. The
recommendation by the German Corporate Governance Code is observed.
In the event of a change of control, Mr Koch, Mr Baier, Mr Hutmacher and Mr Palazzi have or
had the right to resign from their office, within 6 months after the change of control, for good
cause by giving 3 months’ prior notice to the end of each month and to terminate their
employment contract with effect from this date (extraordinary termination right).
The contractual provisions assume a change of control if either a single shareholder or a
number of jointly acting shareholders acquire a controlling interest in the meaning of § 29 of
the German Securities Acquisition and Takeover Act (WpÜG) by way of holding at least 30% of
the voting rights and the change of control significantly interferes with the responsibilities of a
member of the Management Board.
If the extraordinary termination right is exercised, or if the employment contract is terminated
on the basis of an amicable agreement within 6 months from the change of control, there is an
entitlement to a one-time remuneration payment for contractual claims during the remaining
term of the employment contract. The recommendation by the German Corporate Governance
Code is observed with the amount of the severance payment being limited to 150% of the
severance payment cap. The entitlement to a severance payment lapses if the employment is
terminated by the company for good cause pursuant to § 626 of the German Civil Code (BGB).
In addition, the employment contracts of the members of the Management Board generally
provide for a post-contractual restraint on competition. They are prohibited from providing
services to or for a competitor for a period of 12 months after termination of the employment
contract. For this purpose, compensation for non-competition has been agreed which
corresponds to the target remuneration consisting of the fixed salary, short-term incentive and
long-term incentive for the duration of the post-contractual restraint on competition and is paid
in monthly instalments. These payments are offset against remuneration earned by other use of
the ability to work. The company has the option of waiving the post-contractual restraint on
competition prior to or upon termination of the employment contract, while observing any
notice periods.
In the event of the death of a member of the Management Board during active service, his or
her surviving dependants will be paid the fixed salary for the month in which the death occurred
as well as for an additional 6 months.
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
112
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Other non-monetary and supplemental benefits
The supplemental benefits granted to members of the Management Board include non-cash
benefits and expense allowances, such as company cars, contributions to individual pension
plans and other.
Remuneration of the Management Board in financial year 2019/20
The remuneration of members of the Management Board in financial year 2019/20 is as follows:
REMUNERATION OF THE MANAGEMENT BOARD IN FINANCIAL YEAR 2019/201
Long-term variable
remuneration
€1,000
Financial
year
Fixed
salary
Supple-
mental
benefits
Short-term
variable
remunera-
tion6
Value of
the
granted
tranche7
(Payout
from
tranches
granted in
the past)
Total8
(Effective
salary9)
Olaf Koch
2018/19
1,200
16
757
1,453
(0)
3,426
(1,973)
2019/20
1,200
14
950
1,828
(0)
3,992
(2,164)
Christian Baier
2018/19
700
13
372
701
(0)
1,786
(1,085)
2019/20
700
17
950
881
(0)
2,548
(1,667)
Andrea Euenheim2
2018/19
–
–
–
–
–
–
–
2019/20
458
134
0
653
(0)
1,245
(592)
Rafael Gasset3
2018/19
–
–
–
–
–
–
–
2019/20
360
110
0
870
(0)
1,340
(470)
Eric Poirier3
2018/19
–
–
–
–
–
–
–
2019/20
360
116
0
870
(0)
1,346
(476)
Heiko Hutmacher4
2018/19
900
17
546
1,090
(0)
2,553
(1,463)
2019/20
225
1
–
–
(0)
226
(226)
Philippe Palazzi5
2018/19
700
270
372
701
(0)
2,043
(1,342)
2019/20
467
141
205
–
(0)
813
(813)
Total
2018/19
3,500
316
2,047
3,945
(0)
9,808
(5,863)
2019/20
3,770
533
2,105
5,102
(0)
11,510
(6,408)
1 Disclosures pursuant to § 285 Sentence 1 No. 9a and § 314 Section 1 No. 6a of the German Commercial Code (HGB) (excluding provisions for post-employment benefits
plans).
2 Employment contract with the company since 1 November 2019.
3 Employment contract with the company since 1 April 2020. The employer contribution to establish a pension scheme, the use of which can be determined individually, is
reported as a supplemental benefit.
4 Employment contract with the company until 31 December 2019.
5 Employment contract with the company until 31 May 2020. The tranches of the long-term incentive for Mr Palazzi have lapsed. The employer contribution to establish a
pension scheme, the use of which can be determined individually, is reported as a supplemental benefit. His appointment as a member of the Management Board ended
on 31 March 2020.
6 For Mr Koch and Mr Baier, the short-term variable remuneration includes the special bonuses granted for financial year 2019/20 for the sale of the majority share in
METRO China, amounting to €950 thousand for each. No payments were made from the short-term variable remuneration for financial year 2019/20. In accordance with
the agreement concluded with Mr Palazzi, the short-term variable remuneration paid to him is based on the semi-annual figures for financial year 2019/20.
7 Shown here is the fair value of the performance share plan, taking into account the revised performance targets.
8 Total of the columns fixed salary, supplemental benefits, short-term variable remuneration and value of the granted tranche of the long-term incentive.
9 Total of the columns fixed salary, supplemental benefits, short-term variable remuneration and payout from tranches granted in the past of the long-term incentive.
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
113
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

BENEFITS GRANTED
Olaf Koch
Christian Baier
Chairman of the Management Board
Member of the Management Board
since 2/3/2017
Chief Financial Officer
Member of the Management Board
since 11/11/2016
2018/19
2019/20
2019/20
2019/20
2018/19
2019/20
2019/20
2019/20
€1,000
Minimum
value
Maximum
value
Minimum
value
Maximum
value
Fixed salary
1,200
1,200
1,200
1,200
700
700
700
700
Supplemental benefits
16
14
14
70
13
17
17
70
Total
1,216
1,214
1,214
1,270
713
717
717
770
1-year variable
remuneration3
1,120
1,120
0
2,240
540
540
0
1,080
Multi-year variable
remuneration
Performance Share
Plan –
tranche 2018/194
1,453
–
–
–
701
–
–
–
Performance Share
Plan –
tranche 2019/205
–
1,828
0
4,200
–
881
0
2,025
Total
3,789
4,162
1,214
7,710
1,954
2,138
717
3,875
Pension expenditure
325
325
325
325
174
174
174
174
Total remuneration
4,114
4,487
1,539
8,035
2,128
2,312
891
4,049
1 The employer contribution to establish a pension scheme, the use of which can be determined individually, is reported as a supplemental benefit.
2 The tranches of the long-term incentive granted to Mr Palazzi have lapsed. The employer contribution to establish a pension scheme, the use of which can be determined
individually, is reported as a supplemental benefit. His appointment as a member of the Management Board ended on 31 March 2020.
3 The figures shown here relate to the short-term incentive excluding any special bonuses.
4 Shown here is the fair value at the time of granting the tranche. (Allocation 15/4/2019, end of performance period after the 40th trading day following the Annual General
Meeting 3 years after the issuance of the tranche.)
5 Shown here is the fair value of the tranche, taking into account the revised performance targets. (Allocation 15/4/2020, end of performance period after the 40th trading
day following the Annual General Meeting 3 years after the issuance of the tranche.)
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
114
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

BENEFITS GRANTED
Andrea Euenheim
Rafael Gasset1
Chief Human Resources Officer and Labour
Director
Member of the Management Board
since 1/11/2019
Chief Operating Officer (Convenience Cluster)
Member of the Management Board
since 1/4/2020
2018/19
2019/20
2019/20
2019/20
2018/19
2019/20
2019/20
2019/20
€1,000
Minimum
value
Maximum
value
Minimum
value
Maximum
value
Fixed salary
–
458
458
458
–
360
360
360
Supplemental benefits
–
134
134
183
–
110
110
130
Total
–
592
592
641
–
470
470
490
1-year variable
remuneration3
–
367
0
734
–
265
0
530
Multi-year variable
remuneration
Performance Share
Plan –
tranche 2018/194
–
–
–
–
–
–
–
–
Performance Share
Plan –
tranche 2019/205
–
653
0
1,500
–
870
0
2,000
Total
–
1,612
592
2,875
–
1,605
470
3,020
Pension expenditure
–
116
116
116
–
–
–
–
Total remuneration
–
1,728
708
2,991
–
1,605
470
3,020
1 The employer contribution to establish a pension scheme, the use of which can be determined individually, is reported as a supplemental benefit.
2 The tranches of the long-term incentive granted to Mr Palazzi have lapsed. The employer contribution to establish a pension scheme, the use of which can be determined
individually, is reported as a supplemental benefit. His appointment as a member of the Management Board ended on 31 March 2020.
3 The figures shown here relate to the short-term incentive excluding any special bonuses.
4 Shown here is the fair value at the time of granting the tranche. (Allocation 15/4/2019, end of performance period after the 40th trading day following the Annual General
Meeting 3 years after the issuance of the tranche.)
5 Shown here is the fair value of the tranche, taking into account the revised performance targets. (Allocation 15/4/2020, end of performance period after the 40th trading
day following the Annual General Meeting 3 years after the issuance of the tranche.)
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
115
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

BENEFITS GRANTED
Eric Poirier1
Heiko Hutmacher
Chief Operating Officer (Hospitality Cluster)
Member of the Management Board
since 1/4/2020
Chief Human Resources Officer and Labour
Director
Member of the Management Board
from 2/3/2017 until 31/12/2019
2018/19
2019/20
2019/20
2019/20
2018/19
2019/20
2019/20
2019/20
€1,000
Minimum
value
Maximum
value
Minimum
value
Maximum
value
Fixed salary
–
360
360
360
900
225
225
225
Supplemental benefits
–
116
116
143
17
1
1
18
Total
–
476
476
503
917
226
226
243
1-year variable
remuneration3
–
265
0
530
840
210
0
420
Multi-year variable
remuneration
Performance Share
Plan –
tranche 2018/194
–
–
–
–
1,090
–
–
–
Performance Share
Plan –
tranche 2019/205
–
870
0
2,000
–
–
–
–
Total
–
1,611
476
3,033
2,847
436
226
663
Pension expenditure
–
–
–
–
244
61
61
61
Total remuneration
–
1,611
476
3,033
3,091
497
287
724
1 The employer contribution to establish a pension scheme, the use of which can be determined individually, is reported as a supplemental benefit.
2 The tranches of the long-term incentive granted to Mr Palazzi have lapsed. The employer contribution to establish a pension scheme, the use of which can be determined
individually, is reported as a supplemental benefit. His appointment as a member of the Management Board ended on 31 March 2020.
3 The figures shown here relate to the short-term incentive excluding any special bonuses.
4 Shown here is the fair value at the time of granting the tranche. (Allocation 15/4/2019, end of performance period after the 40th trading day following the Annual General
Meeting 3 years after the issuance of the tranche.)
5 Shown here is the fair value of the tranche, taking into account the revised performance targets. (Allocation 15/4/2020, end of performance period after the 40th trading
day following the Annual General Meeting 3 years after the issuance of the tranche.)
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
116
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

BENEFITS GRANTED
Philippe Palazzi2
Chief Operating Officer
Member of the Management Board
from 7/5/2018 until 31/5/2020
2018/19
2019/20
2019/20
2019/20
€1,000
Minimum
value
Maximum
value
Fixed salary
700
467
467
467
Supplemental benefits
270
141
141
180
Total
970
608
608
647
1-year variable remuneration3
540
360
0
720
Multi-year variable remuneration
Performance Share Plan – tranche 2018/194
701
–
–
–
Performance Share Plan – tranche 2019/205
–
–
–
–
Total
2,211
968
608
1,367
Pension expenditure
–
–
–
–
Total remuneration
2,211
968
608
1,367
1 The employer contribution to establish a pension scheme, the use of which can be determined individually, is reported as a supplemental benefit.
2 The tranches of the long-term incentive granted to Mr Palazzi have lapsed. The employer contribution to establish a pension scheme, the use of which can be determined
individually, is reported as a supplemental benefit. His appointment as a member of the Management Board ended on 31 March 2020.
3 The figures shown here relate to the short-term incentive excluding any special bonuses.
4 Shown here is the fair value at the time of granting the tranche. (Allocation 15/4/2019, end of performance period after the 40th trading day following the Annual General
Meeting 3 years after the issuance of the tranche.)
5 Shown here is the fair value of the tranche, taking into account the revised performance targets. (Allocation 15/4/2020, end of performance period after the 40th trading
day following the Annual General Meeting 3 years after the issuance of the tranche.)
ACCRUALS
Olaf Koch
Christian Baier
Andrea Euenheim
Rafael Gasset1
Chairman of the
Management Board
Member of the
Management Board
since 2/3/2017
Chief Financial Officer
Member of the
Management Board
since 11/11/2016
Chief Human Resources
Officer and Labour
Director
Member of the
Management Board
since 1/11/2019
Chief Operating Officer
(Convenience Cluster)
Member of the
Management Board
since 1/4/2020
€1,000
2019/20
2018/19
2019/20
2018/19
2019/20
2018/19
2019/20
2018/19
Fixed salary
1,200
1,200
700
700
458
–
360
–
Supplemental benefits
14
16
17
13
134
–
110
–
Total
1,214
1,216
717
713
592
–
470
–
1-year variable
remuneration3
950
757
950
372
0
–
0
–
Multi-year variable
remuneration
0
0
0
0
0
–
0
–
Other
0
0
0
0
0
–
0
–
Total
2,164
1,973
1,667
1,085
592
–
470
–
Pension expenditure
325
325
174
174
116
–
–
–
Total remuneration
2,489
2,298
1,841
1,259
708
–
470
–
1 The employer contribution to establish a pension scheme, the use of which can be determined individually, is reported as a supplemental benefit.
2 The tranches of the long-term incentive granted to Mr Palazzi have lapsed. The employer contribution to establish a pension scheme, the use of which can be determined
individually, is reported as a supplemental benefit. His appointment as a member of the Management Board ended on 31 March 2020.
3 For Mr Koch and Mr Baier, the short-term variable remuneration includes the special bonuses granted for financial year 2019/20 for the sale of the majority share in
METRO China, amounting to €950 thousand for each. No payments were made from the short-term variable remuneration for financial year 2019/20. In accordance with
the agreement concluded with Mr Palazzi, the short-term variable remuneration paid to him is based on the semi-annual figures for financial year 2019/20.
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
117
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

ACCRUALS
Eric Poirier1
Heiko Hutmacher
Philippe Palazzi2
Chief Operating Officer
(Hospitality Cluster)
Member of the
Management Board
since 1/4/2020
Chief Human Resources
Officer and Labour
Director
Member of the
Management Board
from 2/3/2017 until 31/
12/2019
Chief Operating Officer
Member of the
Management Board
from 7/5/2018 until 31/
5/2020
€1,000
2019/20
2018/19
2019/20
2018/19
2019/20
2018/19
Fixed salary
360
–
225
900
467
700
Supplemental benefits
116
–
1
17
141
270
Total
476
–
226
917
608
970
1-year variable remuneration3
0
–
0
546
205
372
Multi-year variable remuneration
0
–
0
0
0
0
Other
0
–
0
0
0
0
Total
476
–
226
1,463
813
1,342
Pension expenditure
–
–
61
244
–
–
Total remuneration
476
–
287
1,707
813
1,342
1 The employer contribution to establish a pension scheme, the use of which can be determined individually, is reported as a supplemental benefit.
2 The tranches of the long-term incentive granted to Mr Palazzi have lapsed. The employer contribution to establish a pension scheme, the use of which can be determined
individually, is reported as a supplemental benefit. His appointment as a member of the Management Board ended on 31 March 2020.
3 For Mr Koch and Mr Baier, the short-term variable remuneration includes the special bonuses granted for financial year 2019/20 for the sale of the majority share in
METRO China, amounting to €950 thousand for each. No payments were made from the short-term variable remuneration for financial year 2019/20. In accordance with
the agreement concluded with Mr Palazzi, the short-term variable remuneration paid to him is based on the semi-annual figures for financial year 2019/20.
Long-term incentive (performance share plan) in financial year 2019/20
For the tranche of the performance share plan granted in financial year 2019/20, the target
amount for Mr Koch is €1.68 million, for Mr Baier €0.81 million, for Ms Euenheim €0.6 million as
well as €0.8 million for Mr Gasset and Mr Poirier each. Mr Hutmacher and Mr Palazzi were not
granted a tranche of the performance share plan in financial year 2019/20.
The number of (initially conditionally) vested performance shares amounts to 184,413 for
Mr Koch, 88,914 for Mr Baier, 65,862 for Ms Euenheim as well as 87,816 for Mr Gasset and
Mr Poirier each.
The value of the tranche allocated in financial year 2019/20 as part of the performance share
plan was calculated by external experts using recognised financial-mathematical methods.
PERFORMANCE SHARE PLAN
Tranche
End of the performance period
Starting price for the
TSR component
Target amount of
Management Board as of
30/9/2020
2016/17
after the 40th trading day following the Annual
General Meeting 3 years after the issuance of the
tranche
€17.14
expired
2017/18
after the 40th trading day following the Annual
General Meeting 3 years after the issuance of the
tranche
€15.10
€3,750,000
2018/19
after the 40th trading day following the Annual
General Meeting 3 years after the issuance of the
tranche
€14.64
€3,750,000
2019/20
after the 40th trading day following the Annual
General Meeting 3 years after the issuance of the
tranche
€9.11
€4,690,000
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
118
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

In addition to the tranche from the performance share plan issued in the reporting year, the
active members of the Management Board have access to the following tranches of the long-
term incentive that were granted during their Management Board activities: Mr Koch and
Mr Baier each have access to the 2017/18 and 2018/19 tranches of the performance share plan.
No payments were made from the 2016/17 tranche of the performance share plan, whose
performance period ended in financial year 2019/20.
In financial year 2019/20, value adjustments resulted from the current tranches of long-term
variable remuneration. The company’s expenses amounted to €0.464 million for Mr Koch,
€0.126 million for Ms Euenheim and €0.145 million each for Mr Gasset and Mr Poirier. Provisions
of €0.376 million for Mr Baier, €1.171 million for Mr Hutmacher and €0.087 million for Mr Palazzi
were released in financial year 2019/20.
As of 30 September 2020, the provisions for the members of the Management Board totalled
€2.710 million.
Services after the end of employment in financial year 2019/20 (including provisions for post-
employment benefits plans)
In financial year 2019/20, a total of €0.68 million was used in accordance with the International
Financial Reporting Standards (IFRS) and the German Commercial Code (HGB) for the
remuneration of the active members of the Management Board of METRO AG for benefits to be
provided after the end of their employment (2018/19: €0.74 million determined according to
IFRS and HGB). Of this total, according to IFRS and the German Commercial Code (HGB),
approximately €0.33 million accounted for pension plans for Mr Koch, approximately
€0.17 million for Mr Baier, approximately €0.12 million for Ms Euenheim and approximately
€0.06 million for Mr Hutmacher.
Provisions according to IFRS and the German Commercial Code (HGB) amount to
approximately €0.001 million for Ms Euenheim. No further provisions are to be formed.
The present value of the commitment volume according to IFRS and the German Commercial
Code (HGB) amount to approximately €4.4 million for Mr Koch, approximately €1.3 million for
Mr Baier, approximately €0.2 million for Ms Euenheim and approximately €4.9 million for
Mr Hutmacher. With the exception of the provision listed in the last paragraph, the cash value of
the commitment volume is offset by assets. There is no commitment volume for Mr Gasset,
Mr Palazzi and Mr Poirier.
Termination benefits in financial year 2019/20
An agreement was reached with Mr Hutmacher in financial year 2018/19 for the premature
termination of his employment contract with effect from the end of 31 December 2019. A
severance payment of €2,957,700 was agreed to settle the remaining term of his employment
contract (1 January 2020 to 30 September 2020) and the short-term incentive for the period
from 1 October 2019 to 31 December 2019. This settlement covers Mr Hutmacher’s claims, taking
into account the contractually agreed severance payment cap in accordance with the German
Corporate Governance Code. The severance payment, which was paid out in that financial year,
was fully accrued in financial year 2018/19. The tranches of the long-term incentive already
granted to Mr Hutmacher will be settled in accordance with the terms of the plan.
In financial year 2019/20, an agreement was reached with Mr Palazzi regarding the early
termination of his employment contract with effect from the end of 31 May 2020. The short-term
incentive for the period from 1 October 2019 to 31 May 2020 was paid out in May 2020 based on
the semi-annual figures for financial year 2019/20. No severance payment was agreed with
Mr Palazzi and the tranches of the long-term incentive granted to him were cancelled without
compensation.
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
119
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

In financial year 2019/20, an agreement was also reached on the early termination of the
employment contract with Mr Koch with effect from the end of 31 December 2020. In
accordance with his contract, the short-term incentive until 31 December 2020 will be paid to
Mr Koch. The tranches of the long-term incentive already granted to Mr Koch remain in place
and will be settled in accordance with the terms of the plan. No severance payment will be paid
to Mr Koch.
Outlook
In financial year 2019/20, the Supervisory Board of METRO AG passed a resolution in its
September meeting for a revised remuneration system for the members of the Management
Board in order to incorporate the new legal and regulatory requirements. This remuneration
system will be presented by the Supervisory Board to the Annual General Meeting in February
2021.
Moreover, the Supervisory Board decided on an orderly procedure for the selection of a new
CEO after having agreed to the amicable termination of Mr Koch’s employment contract as of
31 December 2020.
Remuneration of members of the Supervisory Board
The members of the Supervisory Board receive a fixed yearly remuneration amount in
accordance with § 13 of METRO AG’s Articles of Association. In financial year 2019/20, this
amounted to €80,000 per ordinary member. The value added tax payable to the respective
remuneration is reimbursed to the members of the Supervisory Board in accordance with § 13
Section 5 of METRO AG’s Articles of Association.
The individual amount of Supervisory Board remuneration takes into account the duties and
responsibilities of the individual members of the Supervisory Board by considering special
assignments. The remuneration of the Chairman of the Supervisory Board is 3 times higher than
that of an ordinary member of the Supervisory Board; that of the Vice Chairman and the
chairpersons of the committees is twice as high; and that of the other members of the
committees is 1.5 times higher. The remuneration for membership or chairmanship of a
committee will be paid only if at least 2 meetings or other resolutions took place during the
respective financial year. A member of the Supervisory Board who holds several offices at once
receives remuneration for only one office; in the case of different levels of remuneration, the
member receives remuneration for the most highly paid office.
Remuneration factors
Chairman of the Supervisory Board
Vice Chairman
Committee chairpersons1
Committee members1
Members of the Supervisory Board
1 With a minimum of 2 meetings/resolutions.
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
120
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The relevant individual amounts for financial year 2019/20 are as follows:
REMUNERATION OF MEMBERS OF THE SUPERVISORY BOARD FOR FINANCIAL YEAR 2019/20 PURSUANT TO
§13 OF THE ARTICLES OF ASSOCIATION1
€
Financial year
Multiplier
Fixed
remuneration
Jürgen Steinemann, Chairman
2018/19
240,000
2019/20
240,000
Werner Klockhaus, Vice Chairman (until 25 June 2020)
2018/19
160,000
2019/20
120,000
Xaver Schiller, Vice Chairman (since 20 July 2020)
2018/19
120,000
2019/20
|
130,000
Marco Arcelli (since 22 January 2020)
2018/19
-
0
2019/20
|
70,000
Stefanie Blaser
2018/19
80,000
2019/20
|
90,000
Herbert Bolliger
2018/19
80,000
2019/20
|
90,000
Gwyn Burr
2018/19
120,000
2019/20
120,000
Thomas Dommel
2018/19
120,000
2019/20
120,000
Prof. Dr. Edgar Ernst
2018/19
160,000
2019/20
160,000
Dr. Florian Funck (until 7 December 2019)
2018/19
120,000
2019/20
30,000
Michael Heider
2018/19
80,000
2019/20
|
90,000
Udo Höfer (since 17 July 2020)
2018/19
0
2019/20
20,000
Peter Küpfer
2018/19
80,000
2019/20
80,000
Rosalinde Lax (since 17 July 2020)
2018/19
0
2019/20
20,000
Susanne Meister (until 25 June 2020)
2018/19
80,000
2019/20
60,000
Dr. Angela Pilkmann (until 25 June 2020)
2018/19
80,000
2019/20
60,000
Dr. Fredy Raas
2018/19
120,000
2019/20
120,000
Eva-Lotta Sjöstedt
2018/19
80,000
2019/20
80,000
Dr. Liliana Solomon
2018/19
120,000
2019/20
|
113,333
Alexandra Soto
2018/19
120,000
2019/20
80,000
Manuela Wetzko (since 17 July 2020)
2018/19
0
2019/20
20,000
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
121
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Angelika Will
2018/19
80,000
2019/20
80,000
Manfred Wirsch
2018/19
80,000
2019/20
80,000
Silke Zimmer
2018/19
80,000
2019/20
80,000
Total2
2018/19
2,200,000
2019/20
2,153,333
1 Plus applicable value added tax in accordance with § 13 Section 5 of the Articles of Association.
2 Reported figures for financial year 2018/19 relate to active members of the Supervisory Board in financial year 2019/20.
In financial year 2019/20, individual members of the Supervisory Board of METRO AG also
received remuneration from the group companies for Supervisory Board mandates at group
companies.
OTHER INTRA-GROUP COMPENSATION OF MEMBERS OF THE SUPERVISORY BOARD FOR FINANCIAL YEAR
2019/201
€
Financial year
Werner Klockhaus
2018/19
10,075
2019/20
9,300
Thomas Dommel
2018/19
4,500
2019/20
4,500
Michael Heider
2018/19
6,000
2019/20
6,000
Rosalinde Lax
2018/19
6,000
2019/20
6,000
Xaver Schiller
2018/19
9,000
2019/20
9,000
Manuela Wetzko
2018/19
6,000
2019/20
6,000
Manfred Wirsch
2018/19
6,000
2019/20
6,000
Total
2018/19
47,575
2019/20
46,800
1 Plus potentially applicable value added tax.
Beyond this, the members of the Supervisory Board were not granted any remuneration or
benefits for work performed, in particular not for consulting and brokerage services, on behalf of
companies of METRO in the sense of Subsection 5.4.6 of the German Corporate Governance
Code.
C O M B I N E D
M A N A G E M E N T  R E P O R T
6  R E M U N E R AT I O N  R E P O R T
122
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

7 TAKEOVER-RELATED DISCLOSURES
The takeover-related disclosures as of 30 September 2020 required under §§ 289a Section 1 and
315a Section 1 of the German Commercial Code (HGB) are shown below:
Composition of the subscribed capital
As of 30 September 2020, the share capital of METRO AG amounted to €363,097,253. It is
divided into a total of 360,121,736 ordinary no-par-value bearer shares (pro rata value of the
share capital: €360,121,736, approximately 99.18%), as well as 2,975,517 preference no-par-value
bearer shares (pro rata value of the share capital: €2,975,517, approximately 0.82%). Each share
in the company has a notional interest of €1.00 in the share capital.
Each ordinary share grants a single vote in the company’s Annual General Meeting. The
ordinary shares carry full dividend rights. In contrast to ordinary shares, preference shares do
not carry voting rights but confer a preferential entitlement to profits as prescribed in § 21 of the
Articles of Association of METRO AG, which state:
‘(1) Holders of non-voting preference shares will receive a preliminary dividend from the
annual balance sheet profit in the amount of €0.17 for each preference share.
(2) Should the balance sheet profit available for distribution not suffice in any one financial year to
pay the preliminary dividend, the arrears (excluding any interest) shall be paid from the balance sheet
profit of subsequent financial years in an order based on age, meaning in such manner that any older
arrears are paid off prior to any more recent ones and that the preference dividends payable from the
profit of a financial year are not distributed until all accrued arrears have been paid.
(3) Following distribution of the preliminary dividends, the holders of ordinary shares will be
paid a dividend of €0.17 for each ordinary share. Subsequently, a non-cumulative extra dividend
per share will be paid to the holders of non-voting preference shares. The extra dividend shall
amount to 10% of the dividend paid to the holders of ordinary shares under observation of
Section 4, provided such dividend equals or exceeds €1.02 per ordinary share.
(4) The holders of non-voting preference shares and of ordinary shares will equally share in any
additional profit distribution in the proportion of their shares in the share capital.’
Other rights associated with ordinary and preference shares include in particular the right to attend
the Annual General Meeting (§ 118 Section 1 of the German Stock Corporation Act (AktG)), the right to
information (§ 131 of the German Stock Corporation Act) and the right to file a legal challenge or a
complaint for nullity (§§ 245 Nos. 1–3, 246, 249 of the German Stock Corporation Act). In addition to the
previously mentioned right to receive dividends, shareholders principally have a subscription right when
the share capital is increased (§ 186 Section 1 of the German Stock Corporation Act), claims to
liquidation proceeds after the closure of the company (§ 271 of the German Stock Corporation Act) and
to severance payment and settlements as a result of certain structural measures, particularly pursuant to
§§ 304 et seqq., 320b and 327b of the German Stock Corporation Act.
Voting rights and transfer-related restrictions
To the best knowledge of the Management Board, the following agreements exist or existed
during financial year 2019/20, which may be construed as restrictions in the sense of § 315a
Section 1 No. 2 and § 289a Section 1 No. 2 of the German Commercial Code.
C O M B I N E D
M A N A G E M E N T  R E P O R T
7  TA K E O V E R - R E L AT E D  D I S C L O S U R E S
123
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Beisheim Capital GmbH, Dusseldorf (Germany), Beisheim Holding GmbH, Baar (Switzerland),
and Palatin Verwaltungsgesellschaft mbH, Essen (Germany), a subsidiary of Meridian Stiftung,
Essen, have been part of a pool of voting rights since 29 July 2019. Based on the registration for
the Annual General Meeting 2020, the partners in the voting pool hold 23.06% of the ordinary
shares. The declared objective of Meridian Stiftung and the Beisheim Group is to exercise the
voting rights from the METRO shares held by them jointly. In the future they plan to act
uniformly vis-a-vis METRO and its shareholders in all material matters. The existing pooling
agreement between Beisheim Capital GmbH, Düsseldorf (Germany), and Beisheim Holding
GmbH, Baar (Switzerland), is suspended for the duration of the new voting rights pool with
Meridian Stiftung, Essen (Germany). In connection with the demerger of the former METRO AG,
CECONOMY AG (formerly operating as METRO AG) has assumed a lock-up agreement with
respect to the shares held by it in accordance with the Group Separation Agreement dated
13 December 2016. According to this agreement, CECONOMY AG is obligated not to sell its
approximately 1% of the shares in METRO AG, which were granted as part of the demerger
within the spin-off from the group, until 1 October 2023.
In addition, legal restrictions on voting rights may apply, for example pursuant to § 136 of the
German Stock Corporation Act or, if the company holds own shares, pursuant to § 71 of the
German Stock Corporation Act.
Shares held in capital
As of 30 September 2020, the following direct and indirect capital interests existed and entitled
their respective holders to more than 10% of the voting rights:
Name/company
Direct/indirect capital interest
entitling to more than 10 % of
voting rights
Beisheim Capital GmbH, Düsseldorf, Germany1
Direct
Beisheim Holding GmbH, Baar, Switzerland1
Direct
Beisheim Group GmbH & Co. KG, Düsseldorf, Germany
Indirect
Beisheim Verwaltungs GmbH, Düsseldorf, Germany
Indirect
Prof. Otto Beisheim Stiftung, Munich, Germany
Indirect
Prof. Otto Beisheim Stiftung, Baar, Switzerland
Indirect
Palatin Verwaltungsgesellschaft mbH, Essen, Germany1
Direct
BVG Beteiligungs- und Vermögensverwaltungs-GmbH, Essen, Germany
Indirect
Gebr. Schmidt GmbH & Co. KG, Essen, Germany
Indirect
Gebr. Schmidt Verwaltungsgesellschaft mbH, Essen, Germany
Indirect
Meridian Stiftung, Essen, Germany
Indirect
EP Global Commerce GmbH, Grünwald, Germany
Direct
EP Global Commerce VII GmbH, Grünwald, Germany
Indirect
EP Global Commerce IV GmbH, Grünwald, Germany
Indirect
EP Global Commerce III GmbH, Grünwald, Germany
Indirect
EP Global Commerce a.s., Prague, Czech Republic
Indirect
Daniel Křetínský
Indirect
Patrik Tkáč2
Indirect
1 Coordination of exercising voting rights based on a pool of voting rights between Beisheim Capital GmbH, Beisheim Holding GmbH and Palatin Verwaltungsgesellschaft
mbH.
2 Attribution of voting rights due to concerted behaviour within the meaning of § 34 Section 2 of the German Securities Trading Act.
C O M B I N E D
M A N A G E M E N T  R E P O R T
7  TA K E O V E R - R E L AT E D  D I S C L O S U R E S
124
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The information above is in particular based on notifications issued under § 33 et seqq. of the
German Securities Trading Act that were received and published by METRO AG.
Voting rights notifications published by METRO AG can be found on the website
www.metroag.de/en in the section Newsroom – Legal Announcements.
Holders of shares with special rights as well as type of voting right control of
employee shares
The company has not issued any shares with special rights pursuant to § 315a Section 1 No. 4
and § 289a Section 1 No. 4 of the German Commercial Code. No capital interests are held by
employees pursuant to § 315a Section 1 No. 5 and § 289a Section 1 No. 5 of the German
Commercial Code.
Provisions governing the appointment and dismissal of members of the
Management Board and changes to the Articles of Association
The appointment and dismissal of members of the Management Board of METRO AG are
governed in §§ 84, 85 of the German Stock Corporation Act and §§ 30, 31, 33 of the German Co-
determination Act. § 5 of the Articles of Association of METRO AG stipulates that the
Management Board shall comprise at least 2 members and that the actual number of members
of the Management Board is determined by the Supervisory Board.
Changes to the Articles of Association of METRO AG are determined principally in
accordance with §§ 179, 181, 133, 119 Section 1 No. 5 of the German Stock Corporation Act. There
are numerous other sections of the German Stock Corporation Act that could possibly govern a
change to the Articles of Association and that may amend or supersede the previously
mentioned regulations, for example §§ 182 et seqq. of the German Stock Corporation Act in the
case of capital increases, §§ 222 et seqq. of the German Stock Corporation Act in the case of
capital reductions or § 262 of the German Stock Corporation Act in the case of the public
limited company (‘AG’) being dissolved. Pursuant to § 14 Section 1 of the Articles of Association
of METRO AG, the Supervisory Board may resolve to change the wording of the Articles of
Association without a resolution passed by the Annual General Meeting.
Authorities of the Management Board to issue or buy back shares
Authorities to issue new shares
With resolution passed by the Annual General Meeting on 16 February 2018, the Management
Board was authorised to increase the share capital, subject to the consent of the Supervisory
Board, by issuing new ordinary bearer shares against cash or non-cash contributions in one or
several tranches for a total maximum of €181,000,000 by 28 February 2022 (authorised capital).
Existing shareholders may exercise their subscription rights. The newly issued shares may
also be acquired by banks or similarly situated companies selected by the Management Board
pursuant to § 186 Section 5 Sentence 1 of the German Stock Corporation Act, given these
institutions agree to tender such shares to the shareholders.
However, subject to the consent of the Supervisory Board, the Management Board is
authorised to exclude shareholder subscription rights in the following cases:
to balance fractional amounts;
C O M B I N E D
M A N A G E M E N T  R E P O R T
7  TA K E O V E R - R E L AT E D  D I S C L O S U R E S
125
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

if shares are issued in exchange for non-cash contributions for the purpose of business
combinations, for the acquisition of companies, for the purchase of parts of companies,
operations, parts of operations or shares in companies;
to grant a so-called scrip dividend, in which the shareholders are offered the right to use their
dividend entitlement (in whole or in part) as a contribution in kind in exchange for new shares
from the authorised capital;
in the event of a capital increase in exchange for cash capital contributions to the extent
necessary to grant subscription rights to new ordinary shares to the holders of warrant or
convertible bearer bonds issued by METRO AG and affiliates thereof in which METRO AG
holds at least 90% of shares, directly or indirectly, in the extent to which they would be
entitled upon exercise of the warrant or conversion rights or performance of the warrant or
conversion obligations or upon exercise of METRO AG’s right to substitute as shareholder;
in the event of capital increases in exchange for cash capital contributions if the aggregate
par value of such capital increases does not exceed 10% of the company’s share capital and
the issue price of the new ordinary shares is not substantially lower than the listed stock
exchange price of existing ordinary shares of the same class. The limit of 10% of the
company’s share capital is diminished by the proportion of the share capital represented by
the company’s own shares which are (i) used as own shares or sold during the term of
authorised capital while excluding subscription rights of the shareholders in corresponding
application of § 186 Section 3 Sentence 4 of the German Stock Corporation Act or (ii) issued
from contingent capital to service warrant or convertible bearer bonds which, in turn, have
been or are issued while excluding subscription rights in corresponding application of § 186
Section 3 Sentence 4 of the German Stock Corporation Act. The proportional share capital
attributable to shares issued under this authority and under exclusion of the shareholders’
subscription rights in exchange for cash or non-cash capital contributions must not exceed
20% of the company’s share capital.
The Management Board is authorised to define further details of the capital increases, subject to
the consent of the Supervisory Board. To date, the authorised capital has not been fully utilised.
Authorities to issue warrant bonds and/or convertible bearer bonds
With resolution passed by the Annual General Meeting on 16 February 2018, the Management
Board was authorised to issue, in each case with the consent of the Supervisory Board, warrant
or convertible bearer bonds (in aggregate, ‘bonds’) with an aggregate par value of
€1,500,000,000 prior to 15 February 2023, on one or several occasions, and to grant the holders
of warrant or convertible bearer bonds warrant or conversion rights or impose warrant or
conversion obligations upon them for ordinary bearer shares in METRO AG representing up to
€50,000,000 of the share capital in accordance with the terms of the warrant or convertible
bearer bonds. This authority results in contingent capital of up to €50,000,000 pursuant to § 4
Section 8 of the METRO AG Articles of Association.
The bonds may also be issued by a METRO AG subsidiary in the meaning of § 18 of the
German Stock Corporation Act in which METRO AG holds a direct or indirect interest of at least
90%. In that case, the Management Board is authorised to assume, in each case with the consent
of the Supervisory Board, a guarantee for those bonds on behalf of METRO AG and grant their
holders warrant or conversion rights to ordinary bearer shares in METRO AG or impose warrant
or conversion obligations upon them.
Shareholders will be granted their statutory subscription rights by way of the bonds being
acquired by a bank or syndicate of banks with an undertaking to offer such bonds to the
shareholders. If bonds are issued by a METRO AG subsidiary in accordance with § 18 of the
German Stock Corporation Act in which METRO AG holds a direct or indirect interest of at least
C O M B I N E D
M A N A G E M E N T  R E P O R T
7  TA K E O V E R - R E L AT E D  D I S C L O S U R E S
126
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

90%, METRO AG must ensure that statutory subscription rights are granted to the shareholders
of METRO AG in accordance with the preceding sentence.
Subject to the consent of the Supervisory Board, the Management Board is however
authorised to exclude shareholder subscription rights for fractional amounts arising from
proportional subscriptions to the extent necessary to grant or impose warrant or conversion
rights or obligations with respect to the holders of existing warrant or conversion rights or
obligations in the amount to which they would be entitled to as shareholders after exercising the
warrant or conversion right or performance of the warrant or conversion obligation.
Subject to the consent of the Supervisory Board, the Management Board is also authorised to
entirely exclude shareholder subscription rights to bonds issued in exchange for cash payment
carrying warrant or conversion rights or warrant or conversion obligations, insofar as the
Management Board concludes, after careful review, that the issue price of the bonds is not
substantially lower than the hypothetical market value ascertained using recognised financial
mathematical methods. This authorisation to exclude subscription rights applies to bonds issued
with warrant or conversion rights or warrant or conversion obligations to pro rata ordinary
shares comprising no more than 10% of the share capital at the time the authority takes effect
or, if this figure is lower, at the time the authorisation is exercised. The limit of 10% of the share
capital is reduced by the pro rata amount of share capital represented by any shares issued (i)
during the effective period of this authority under exclusion of subscription rights according to
§ 186 Section 3 Sentence 4 of the German Stock Corporation Act, or (ii) to service warrant or
convertible bearer bonds providing for warrant or conversion rights or obligations, insofar as
such bonds were issued during the effective period of this authorisation under exclusion of
subscription rights by application of § 186 Section 3 Sentence 4 of the German Stock
Corporation Act mutatis mutandis.
If bonds carrying warrant or conversion rights or warrant or conversion obligations are issued,
the warrant or conversion price is determined pursuant to the rules in § 4 Section 8 of the
Articles of Association of METRO AG.
In the case of bonds carrying warrant or conversion rights or warrant or conversion
obligations, the warrant or conversion price may be adjusted after closer determination in order
to preserve the value of such warrant or conversion rights or warrant or conversion obligations
in the event their economic value is diluted, to the extent that such an adjustment is not already
provided for by law. The bonds’ terms may also provide for an adjustment of warrant or
conversion rights or warrant or conversion obligations in case of a capital reduction or other
extraordinary measures or events (for example unusually high dividends, third parties gaining a
controlling interest). In the case of a third party gaining a controlling interest, the bonds’ terms
may provide for adjustment of the warrant or conversion price to reflect market conditions.
Furthermore, the terms of the bonds may provide for a variable conversion ratio and/or variable
warrant and conversion price, where the warrant or conversion price is determined within a
range to be determined on the basis of the share price development during the term. The
minimum issue price based on the stipulations of § 4 Section 8 of METRO AG’s Articles of
Association may not be undercut.
The bonds’ terms may grant METRO AG the right, in lieu of providing ordinary shares upon
the exercise of warrant or conversion rights, to make a cash payment corresponding to the
volume-weighted average price of METRO AG ordinary shares on the Xetra trading system (or a
functionally comparable successor system replacing the Xetra system) of the Frankfurt Stock
Exchange during a period of several days before or after the exercise of warrant or conversion
rights is announced for the number of ordinary shares that would otherwise be delivered. This
period is to be determined by the Management Board. The bonds’ terms may, at METRO AG’s
discretion, also provide for the warrant or convertible bearer bonds to be converted into existing
C O M B I N E D
M A N A G E M E N T  R E P O R T
7  TA K E O V E R - R E L AT E D  D I S C L O S U R E S
127
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

ordinary shares in METRO AG or shares in another listed company in lieu of converting them into
new ordinary shares from contingent capital and that warrant rights or obligations can be
performed by the delivery of such shares.
The bonds’ terms may also provide for a warrant or conversion obligation at the end of the
term (or at any other time), or authorise METRO AG to grant bondholders ordinary shares in
METRO AG or shares in another listed company upon maturity of bonds carrying warrant or
conversion rights (including bonds which mature due to termination), in whole or in part, in lieu
of a maturity payment in cash. The percentage of share capital represented by the ordinary
shares in METRO AG issued upon the exercise of warrant or conversion rights must not exceed
the par value of the bonds. §§ 9 Section 1, 199 Section 2 of the German Stock Corporation Act
apply.
The Management Board is authorised to determine, in each case with the consent of the
Supervisory Board, the further details pertaining to the issuance and terms of the bonds,
particularly the coupon, issue price, term, division into shares, rules for the protection against
dilution and the warrant or conversion period, or to define such details in consultation with the
corporate bodies of the affiliate of METRO AG which issues the warrant or convertible bonds in
accordance with § 18 of the German Stock Corporation Act.
To date, the authority to issue warrant and/or convertible bearer bonds has not been
exercised.
Authorities to repurchase own shares
The company is authorised to buy back its own shares in accordance with § 71 of the German
Stock Corporation Act. Pursuant to § 71 Section 1 No. 8 of the German Stock Corporation Act,
the Annual General Meeting authorised the company by resolution on 11 April 2017 to acquire its
own shares of any class until 28 February 2022. The authority is limited to the repurchase of
shares collectively representing a maximum of 10% of the share capital issued as of the date the
Annual General Meeting resolution is passed or – if this figure is lower – at the time the authority
is exercised. The shares transferred under this authority, together with any own shares acquired
for other reasons and held by the company or attributable to it pursuant to §§ 71a et seqq. of
the German Stock Corporation Act, shall collectively not exceed a pro rata proportion of 10% in
the share capital at any time.
Shares may be acquired on the stock exchange or by way of a tender offer aimed at all
shareholders. In the process, the authorisation includes specifications regarding the purchase
price and procedures to be followed in case a public offering is oversubscribed.
The Management Board is authorised to use the shares in the company acquired based on the
above authorisation for the following purposes in particular:
disposal of shares in the company on the stock exchange or by means of a purchase offer
expressed to all shareholders;
listing of shares in the company on foreign stock exchanges where they were not hitherto
admitted for trading, where the authorisation includes stipulations regarding the initial listing
price;
transfer of shares in the company to third parties for non-cash consideration in connection
with business combinations or the acquisition of other companies, divisions of other
companies, businesses or interests in other companies or other assets;
C O M B I N E D
M A N A G E M E N T  R E P O R T
7  TA K E O V E R - R E L AT E D  D I S C L O S U R E S
128
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

disposal of shares in the company outside of the stock exchange or via a purchase offer
expressed to all shareholders, provided that the disposal is for cash payment and at a price
not substantially lower than the stock exchange price in effect for listed shares of the
company with the same terms on the date of the disposal. This authority is limited to the
disposal of shares collectively representing a maximum of 10% of the share capital at the time
the authority takes effect or – if this figure is lower – at the time the authority is exercised.
The maximum limit of 10% of the share capital is reduced by the pro rata amount of share
capital represented by any shares issued (i) during the effective period of this authority under
exclusion of subscription rights according to § 186 Section 3 Sentence 4 of the German Stock
Corporation Act, or (ii) to service warrant or convertible bearer bonds providing for warrant
or conversion rights or obligations, insofar as such bonds were issued during the effective
period of this authority under exclusion of subscription rights by application of § 186 Section
3 Sentence 4 of the German Stock Corporation Act mutatis mutandis;
delivery of shares to holders of warrant or convertible bearer bonds of the company or its
affiliates, in accordance with § 18 of the German Stock Corporation Act under the terms and
conditions applicable to such warrant or convertible bonds; this also applies to the delivery of
shares based upon the exercise of subscription rights, which in the event of a disposal of
company shares through an offer to all shareholders or in the event of a capital increase with
subscription rights may be granted to holders of warrant or convertible bonds of the
company or any of its affiliates in accordance with § 18 of the German Stock Corporation Act
to the same extent that holders of such warrant or convertible bonds would have subscription
rights for shares of the company after exercising the warrant or conversion rights or
performing the warrant or conversion obligations. The shares transferred under this authority
shall collectively not exceed a pro rata proportion of 10% of the share capital at the time the
authority takes effect or – if this figure is lower – at the time the authorisation is exercised,
insofar as such shares were issued to service warrant or conversion rights or warrant or
conversion obligations granted or imposed in application of § 186 Section 3 Sentence 4 of the
German Stock Corporation Act mutatis mutandis. The maximum limit of 10% of the share
capital is reduced by the pro rata amount of share capital represented by any shares issued or
sold during the effective period of this authority by application of § 186 Section 3 Sentence 4
of the German Stock Corporation Act mutatis mutandis;
distribution of a stock dividend (scrip dividend), where company shares are used (also
partially and selectively) to service dividend rights of shareholders;
redemption of shares in the company, without the need for any further resolution by the
Annual General Meeting. Such redemption may also be accomplished without a capital
reduction by increasing the proportional value of the remaining no-par-value shares in the
share capital of the company. In this case, the Management Board is authorised to adjust the
number of no-par-value shares stipulated in the Articles of Association.
The above authorisations to acquire and use the company’s own shares based on the above or
previous authorisations may be exercised in whole or in part, on one or several occasions,
individually or collectively by the company or its group companies in accordance with § 18 of
the German Stock Corporation Act or by third parties acting for their account or for the account
of the company. The above authorities may be exercised for the acquisition and use of ordinary
shares as well as preference shares or only for the acquisition and use of ordinary shares or for
preference shares only.
Using own shares in accordance with the above authorisations other than selling acquired
company shares on the stock exchange or by offer to all shareholders requires consent of the
Supervisory Board.
C O M B I N E D
M A N A G E M E N T  R E P O R T
7  TA K E O V E R - R E L AT E D  D I S C L O S U R E S
129
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The subscription rights of shareholders are excluded if own shares are used for any of the
purposes authorised above, with the exception of the authority to sell the company’s shares by
making a purchase offer to all shareholders, the authority to distribute dividends in the form of a
scrip dividend and the authority to redeem shares without the need for any further resolution by
the Annual General Meeting.
The Management Board is authorised to exclude shareholder subscription rights for residual
amounts if own shares are used in accordance with the authority to sell the company’s shares by
making a purchase offer to all shareholders in compliance with the principle of equal treatment
stipulated in § 53a of the German Stock Corporation Act. The Management Board is further
authorised to exclude shareholder subscription rights if own shares are used to distribute
dividends in the form of a scrip dividend.
To date, the authorisation to repurchase the company’s own shares has not been exercised.
Fundamental agreements related to the conditions of a change of control
METRO AG is currently a borrower under 2 syndicated loan agreements, which the lender may
cancel in the case of a change of control, provided that, additionally and as a result of the
change of control, the credit rating of METRO AG deteriorates to a certain degree as defined in
respective agreements. By the definition included in the syndicated loan agreements, ‘change of
control’ refers to the loss and acquisition of control as per § 29 of the German Securities
Acquisition and Takeover Act (WpÜG). Prerequisites of such a change of control are (1) that the
shareholders who controlled METRO AG at the time at which each contract was signed lose
control over METRO AG and that (2) one or more parties acquire control of METRO AG. The
lending banks may only cancel the contract and demand the return of the loans if the change of
control and a resulting drop in the credit rating occur cumulatively. The arrangements described
are common market practice and serve the purpose of protecting creditors.
Compensation agreements in the event of a takeover bid
The company has entered into compensation agreements with the members of the Management
Board to provide for the case of a takeover bid. In the event of a change of control, individual
members of the Management Board, with whom this clause has already been agreed in their
existing employment contracts, may exercise their right to resign from their office, within 6
months after the change of control, for good cause at the end of each month by giving 3
months’ prior notice and to terminate their employment contract with effect to this date
(extraordinary termination right). No change of control clause is agreed for new employment
contracts (initial appointment).
Based on the contractual provisions a change of control can be assumed if either a single
shareholder or a number of jointly acting shareholders have acquired a controlling interest in the
meaning of § 29 of the German Securities Acquisition and Takeover Act (WpÜG) by way of
holding at least 30% of the voting rights and the change of control significantly interferes with
the responsibilities of a member of the Management Board.
If the extraordinary termination right is exercised, or if the service contract is terminated on
the basis of an amicable agreement within 6 months from the change of control, the respective
member of the Management Board shall be entitled to a lump sum compensation for his or her
contractual entitlements during the remaining term of the member’s management contract. The
recommendation by the German Corporate Governance Code is observed with the amount of
C O M B I N E D
M A N A G E M E N T  R E P O R T
7  TA K E O V E R - R E L AT E D  D I S C L O S U R E S
130
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

the severance payment being limited to 150% of the severance payment cap. The entitlement to
a severance payment lapses if the employment was terminated by the company for good cause
pursuant to § 626 of the German Civil Code (BGB).
However, no compensation agreements with employees have been concluded in the event of
a takeover bid.
C O M B I N E D
M A N A G E M E N T  R E P O R T
7  TA K E O V E R - R E L AT E D  D I S C L O S U R E S
131
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

8 SUPPLEMENTARY NOTES FOR METRO AG (PURSUANT TO THE
GERMAN COMMERCIAL CODE)
Overview of financial year 2019/20 and outlook of METRO AG
METRO AG, in its function as the management holding company of the METRO group, is highly
dependent on the development of METRO in terms of its own business development, position
and potential development with its key opportunities and risks.
In light of the holding structure, the most important key performance indicator for METRO AG
in terms of GAS 20 is commercial net profit or loss – contrary to the case for the group as a
whole.
Business development of METRO AG
The business development of METRO AG is primarily characterised by the development of its
subsidiaries and the intra-group dividend policies. In financial year 2019/20, it is particularly
noteworthy that the losses from the hypermarket business up to its disposal and the results of
the disposal itself have been taken into account in the Annual Financial Statements of METRO
AG, while the capital gains from the sale of METRO China were essentially incurred at the level
of an intermediate holding company based abroad. No decision has yet been made on the
appropriation of the profits of this intermediate holding company and of other operating
companies. In this respect, the Annual Financial Statements of METRO AG technically show a
high and unanticipated net loss for the year, although the liquid funds from the disposal of the
majority stake in METRO China have already accrued to METRO’s cash pool. Since the Annual
Financial Statements of METRO AG prepared under German commercial law serve as the basis
for dividend distribution, a withdrawal was made from the capital reserves in order to generate
the balance sheet profit required for the proposed dividend payment. While the proposed
dividend is generally based on the earnings per share reported in the consolidated financial
statements, the income statement and balance sheet from the Annual Financial Statements of
METRO AG are prepared in accordance with the regulations stipulated by the German
Commercial Code (HGB) as outlined below.
C O M B I N E D
M A N A G E M E N T  R E P O R T
8  S U P P L E M E N TA R Y  N O T E S  F O R  M E T R O A G
( P U R S U A N T  T O  T H E  G E R M A N  C O M M E R C I A L  C O D E )
132
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Earnings position of METRO AG and profit appropriation
INCOME STATEMENT FOR THE FINANCIAL YEAR FROM 1 OCTOBER 2019 TO 30 SEPTEMBER 2020 IN
ACCORDANCE WITH THE GERMAN COMMERCIAL CODE
€ million
2018/19
2019/20
Sales
393
358
Other operating income
387
443
Cost of services purchased
−51
−40
Personnel expenses
−139
−167
Depreciation/amortisation/impairment losses on intangible and tangible assets
−66
−65
Other operating expenses
−571
−736
Investment result
293
−527
Net financial result
−5
−34
Income taxes
−2
−43
Earnings after taxes
239
−811
Other taxes
−2
−4
Net profit or loss (+)/net loss for the year (−)
237
−815
Retained earnings from the previous year
29
11
Withdrawal from the capital reserve
0
1,070
Balance sheet profit
266
267
METRO AG essentially serves as a licensor and service provider for the operational METRO
national subsidiaries and settles them using the transfer pricing system.
The key services provided in this context include various operational services (consulting
services), holding company services as well as services related to the development and
operation of various in-house IT solutions. In order to be able to render these services, the
company purchases IT services from subcontractors within the group as well as from third-party
providers, in particular, which leads to higher costs for services purchased, other operating
expenses and depreciation/amortisation. METRO AG acts as a centralised licensor for its current
and, temporarily, also for its former subsidiaries with respect to its METRO and MAKRO brands
as well as its own-brand products.
Revenue €358 million in settlement amounts received by METRO AG were recognised as sales
in the reporting period. They are broken down into €250 million for settlement amounts received
in the form of licensing fees for the METRO and MAKRO brands as well as €108 million relating
to IT and business services. The reason for the decline in sales is the earnings development in
Western Europe, which was impacted by Covid-19, since the licensing fees for the use of the
METRO and MAKRO brands are mainly based on earnings. Increased licence fees in Eastern
Europe (excluding Russia) and Asia could only partially offset this effect.
The item other operating income consists mainly of settlement amounts from subsidiaries
that are not classified as sales. The increase compared to the previous year mainly relates to risk
provisions that are no longer required for the settlement of licensing fees in certain countries
(reversal of provisions) and one-off income in connection with the disposal of METRO China and
the hypermarket business (miscellaneous other operating income).
To perform its function as a central management holding company, METRO AG has
subcontracted service performances which predominantly relate to costs of marketing and IT
services to subsidiaries as well as third-party companies. To the extent such expenses are related
C O M B I N E D
M A N A G E M E N T  R E P O R T
8  S U P P L E M E N TA R Y  N O T E S  F O R  M E T R O A G
( P U R S U A N T  T O  T H E  G E R M A N  C O M M E R C I A L  C O D E )
133
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

to settlement payments recognised in the item sales revenues, the corresponding amounts have
been recognised in the item cost of services purchased.
On average during the 4 quarters of financial year 2019/20, METRO AG employed 796 people.
Part-time employees and temporary workers were converted into full-time equivalents. Despite a
lower number of employees, personnel expenses were higher than in the previous year due to
higher restructuring expenses.
Impairment losses in the amount of €40 million are attributable to amortisation of the usage
rights to the METRO and MAKRO brands and the remainder to scheduled depreciation of other
assets.
Other operating expenses consist of expenses incurred by METRO AG in exercising its
function as a management holding and concern costs for services subcontracted to companies
both within and outside of the group. The increase compared to the previous year is mainly due
to higher currency losses and higher risk provisions for the settlement of licensing fees in
various countries.
For financial year 2019/20, METRO AG posted an investment result of €−527 million. Profit
and loss transfer agreements with other group companies accounted for revenues in the amount
of €219 million. Losses were absorbed in the amount of €252 million. These losses predominantly
result from the hypermarket business (Real). The income from investments without profit and
loss transfer agreements amounted to €352 million in financial year 2019/20 and was
attributable to the group’s real estate companies. In the reporting year, depreciation in shares in
affiliated companies in the real estate sector amounted to €624 million, mainly as a result of
impairment losses following dividend distributions. In addition, the sale of the hypermarket
business resulted in a disposal loss of €222 million.
The net financial result amounted to €−34 million, mainly due to a reduced net interest result.
The net loss for the year comes in at €−815 million. Including retained earnings from the
previous year in the amount of €11 million and the withdrawal of €1,070 million from the capital
reserve, the company’s balance sheet profit amounted to €267 million.
Regarding the appropriation of the balance sheet profit for 2019/20, the Management Board
of METRO AG will propose to the Annual General Meeting to distribute from the reported
balance sheet profit of €267 million a dividend in the amount of €0.70 per ordinary share and in
the amount of €0.70 per preference share – that is, a total of €254 million – and to carry forward
the remaining amount to the new account.
C O M B I N E D
M A N A G E M E N T  R E P O R T
8  S U P P L E M E N TA R Y  N O T E S  F O R  M E T R O A G
( P U R S U A N T  T O  T H E  G E R M A N  C O M M E R C I A L  C O D E )
134
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Financial position of METRO AG
Cash flows
As of the closing date, cash on hand amounted to €1,083 million. This item essentially includes
bank deposits through cash pool income from the subsidiaries towards the end of the reporting
period.
Capital structure
EQUITY AND LIABILITIES
€ million
30/9/2019
30/9/2020
Equity
Share capital
363
363
Capital reserve
6,118
5,048
Balance sheet profit
266
267
6,747
5,678
Provisions
451
702
Liabilities
Bonds
2,288
2,071
Liabilities to banks
262
60
Liabilities to affiliated companies
8,380
2,663
Miscellaneous liabilities
81
48
11,011
4,841
Deferred income
12
159
18,221
11,380
Liabilities consist of equity in the amount of €5,678 million and provisions, liabilities and
deferred income in the amount of €5,702 million. The equity ratio as of the closing date was
49.9%. Provisions as of the closing date totalled €702 million. Liabilities consist of €2,071 million
in bonds and €60 million in liabilities to banks. The balance sheet also reports liabilities to
affiliated companies in the amount of €2,663 million. They mainly relate to short-term financial
investments of subsidiaries. The balance was significantly reduced due to a reconciliation of
receivables and liabilities within the group.
C O M B I N E D
M A N A G E M E N T  R E P O R T
8  S U P P L E M E N TA R Y  N O T E S  F O R  M E T R O A G
( P U R S U A N T  T O  T H E  G E R M A N  C O M M E R C I A L  C O D E )
135
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Asset position of METRO AG
ASSETS
€ million
30/9/2019
30/9/2020
Non-current assets
Intangible assets
939
875
Tangible assets
3
2
Financial assets
9,005
8,147
9,947
9,024
Current assets
Receivables and other assets
8,218
1,263
Cash on hand, bank deposits and cheques
44
1,083
8,262
2,346
Deferred income
12
10
18,221
11,380
As of the closing date, METRO had total assets of €11,380 million, which are predominantly
comprised of financial assets in the amount of €8,147 million, receivables from affiliated
companies at €1,231 million and the usufructuary rights to the METRO and MAKRO brands which
were recognised as an intangible asset (€840 million). The financial assets predominantly
consist of shares held in affiliated companies in the amount of €8,141 million which are essentially
comprised of shares in the holding for wholesale companies (€6,731 million), in real estate
companies (€670 million), in service providers (€519 million) and in other companies
(€221 million). The reduction resulted from the divestment of the hypermarket business as well
as through the disposal of shares and through dividend distribution-related impairments. The
financial assets account for 71.6% of the total assets. Receivables from affiliated companies
amount to €1,231 million. This corresponds to 10.8% of the total assets. This item mainly reflects
the short-term financing requirements of group companies as of the closing date. Cash on hand,
bank deposits and cheques amounted to €1,083 million, the increase being largely due to the
payments received from corporate transactions.
Risk situation of METRO AG
As METRO AG is closely engaged with the companies of the METRO group through financing
and guarantee commitments as well as direct and indirect investments, among other things, the
risk situation of METRO AG is highly dependent on the risk situation of the METRO group. This is
why the summary of the risk situation of METRO AG issued by the company’s management also
reflects the risk situation of the METRO group.
C O M B I N E D
M A N A G E M E N T  R E P O R T
8  S U P P L E M E N TA R Y  N O T E S  F O R  M E T R O A G
( P U R S U A N T  T O  T H E  G E R M A N  C O M M E R C I A L  C O D E )
136
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Outlook of METRO AG
The business development of METRO AG as the management holding company essentially
depends on the development and dividend distributions of its investments. In light of the
ongoing Covid-19 pandemic, we anticipate that lower licence income from subsidiaries will be
offset by ongoing cost savings as a result of the implemented efficiency programme as well as
changes in investment results. Accordingly, we expect that a positive net profit will be reported
again in the coming financial year 2020/21.
Planned investments of METRO AG
In the context of METRO’s investment activities, METRO AG will support group companies with
increases in shareholdings or loans, where necessary. In addition, investments in shareholdings in
affiliated companies may result from intra-group share transfers.
Declaration on corporate management
The declaration on corporate management, summarised in the corporate governance report,
pursuant to § 289f of the German Commercial Code (HGB) and § 315d of the German
Commercial Code (HGB) is permanently and publicly available on the company’s website
(www.metroag.de/en) in the section Company – Corporate Governance.
C O M B I N E D
M A N A G E M E N T  R E P O R T
8  S U P P L E M E N TA R Y  N O T E S  F O R  M E T R O A G
( P U R S U A N T  T O  T H E  G E R M A N  C O M M E R C I A L  C O D E )
137
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

INCOME STATEMENT
140
RECONCILIATION FROM
PROFIT OR LOSS FOR THE
PERIOD TO TOTAL
COMPREHENSIVE INCOME
141
BALANCE SHEET
142
STATEMENT OF CHANGES IN
EQUITY
144
CASH FLOW STATEMENT
146
NOTES
149
Segment reporting
150
Notes to the group accounting principles and
methods
151
Capital management
173
Notes to the income statement
174
Notes to the balance sheet
185
Other notes
233
RESPONSIBILITY STATEMENT
OF THE LEGAL
REPRESENTATIVES
293
INDEPENDENT AUDITOR’S
REPORT
294

CONSOLIDATED FINANCIAL
STATEMENTS
C O N S O L I D A T E D
F I N A N C I A L
S TA T E M E N T S
139
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

INCOME STATEMENT
for the financial year from from 1 October 2019 to 30 September 2020
€ million
Note no.
2018/191
2019/20
Sales revenues
1
27,082
25,632
Cost of sales
−22,466
−21,271
Gross profit on sales
4,617
4,361
Other operating income
2
1,376
948
Selling expenses
3
−3,955
−3,849
General administrative expenses
4
−811
−831
Other operating expenses
5
−279
−321
Earnings from impairment of financial assets
6
−14
−64
Earnings share of operating companies recognised at equity
7
24
14
Earnings before interest and taxes EBIT
957
257
Earnings share of non-operating companies recognised at equity
7
0
0
Other investment result
8
−1
3
Interest income
9
45
31
Interest expenses
9
−285
−252
Other financial result
10
12
−72
Net financial result
−230
−289
Earnings before taxes EBT
728
−32
Income taxes
12
−301
−108
Profit or loss for the period from continuing operations
427
−140
Profit or loss for the period from discontinued operations after taxes
43
−93
612
Profit or loss for the period
333
471
Profit or loss for the period attributable to non-controlling interests
13
11
11
from continuing operations
(6)
(5)
from discontinued operations
(5)
(6)
Profit or loss for the period attributable to the shareholders of
METRO AG
322
460
from continuing operations
(421)
(−146)
from discontinued operations
(−99)
(606)
Earnings per share in € (basic = diluted)
14
0.89
1.27
from continuing operations
(1.16)
(−0.40)
from discontinued operations
(−0.27)
(1.67)
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
C O N S O L I D A T E D
F I N A N C I A L
S TA T E M E N T S
I N C O M E  S TAT E M E N T
140
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

RECONCILIATION FROM PROFIT OR LOSS FOR THE PERIOD TO
TOTAL COMPREHENSIVE INCOME
for the financial year from from 1 October 2019 to 30 September 2020
€ million
Note no.
2018/191
2019/20
Profit or loss for the period
333
471
Other comprehensive income
Items of other comprehensive income that will not be reclassified
subsequently to profit or loss
31
−75
5
Remeasurement of defined benefit pension plans
−94
7
Subsequent measurement of associates/joint ventures accounted for
using the equity method
0
0
Effects from the fair value measurements of equity instruments
−3
0
Income tax attributable to items of other comprehensive income that
will not be reclassified subsequently to profit or loss
22
−2
Items of other comprehensive income that may be reclassified
subsequently to profit or loss
31
129
−470
Currency translation differences from translating the financial
statements of foreign operations
132
−468
Effective portion of gains/losses from cash flow hedges
2
−2
Effects from the fair value measurements of debt instruments
0
0
Subsequent measurement of associates/joint ventures accounted for
using the equity method
0
0
Income tax attributable to items of other comprehensive income that
may be reclassified subsequently to profit or loss
−5
0
Other comprehensive income
31
54
−466
Total comprehensive income
31
387
6
Total comprehensive income attributable to non-controlling interests
31
12
11
Total comprehensive income attributable to the shareholders of
METRO AG
31
375
−5
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
C O N S O L I D A T E D
F I N A N C I A L
S TA T E M E N T S
R E C O N C I L I A T I O N  F R O M  P R O F I T  O R  L O S S  F O R  T H E
P E R I O D  T O  T O TA L  C O M P R E H E N S I V E  I N C O M E
141
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

BALANCE SHEET
as of 30 September 2020
ASSETS
€ million
Note no.
1/10/20181, 2
30/9/20192
30/9/2020
Non-current assets
9,740
8,838
8,277
Goodwill
19
797
785
731
Other intangible assets
20
499
562
576
Property, plant and equipment
21
7,469
6,635
5,811
Investment properties
22
135
127
188
Financial assets
23
86
97
98
Investments accounted for using the equity method
23
178
179
421
Other financial assets
24
164
150
185
Other non-financial assets
24
30
20
16
Deferred tax assets
25
382
284
252
Current assets
8,504
8,992
4,915
Inventories
26
2,108
1,946
1,888
Trade receivables
27
568
482
429
Financial assets
2
4
3
Other financial assets
24
580
622
525
Other non-financial assets
24
349
279
377
Entitlements to income tax refunds
206
190
145
Cash and cash equivalents
29
1,298
500
1,525
Assets held for sale
30, 43
3,393
4,970
22
18,244
17,830
13,192
1 Adjustment due to application of IFRS 9 and IFRS 15.
2 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
C O N S O L I D A T E D
F I N A N C I A L
S TA T E M E N T S
B A L A N C E  S H E E T
142
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

EQUITY AND LIABILITIES
€ million
Note no.
1/10/20181, 2
30/9/20192
30/9/2020
Equity
31
2,234
2,345
2,061
Share capital
363
363
363
Capital reserve
6,118
6,118
5,048
Reserves retained from earnings
−4,287
−4,167
−3,358
Equity before non-controlling interests
2,194
2,314
2,053
Non-controlling interests
40
31
8
Non-current liabilities
5,804
5,652
5,506
Provisions for post-employment benefits plans and
similar obligations
32
468
543
550
Other provisions
33
88
108
139
Financial liabilities
34, 36
5,055
4,766
4,541
Other financial liabilities
34, 37
56
55
17
Other non-financial liabilities
34, 37
24
25
193
Deferred tax liabilities
25
114
155
66
Current liabilities
10,206
9,832
5,625
Trade liabilities
34, 35
3,993
3,572
3,199
Provisions
33
230
158
287
Financial liabilities
34, 36
1,742
1,164
773
Other financial liabilities
34, 37
744
728
724
Other non-financial liabilities
34, 37
389
228
451
Income tax liabilities
34
191
169
184
Liabilities related to assets held for sale
33, 43
2,915
3,813
7
18,244
17,830
13,192
1 Adjustment due to application of IFRS 9 and IFRS 15.
2 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
C O N S O L I D A T E D
F I N A N C I A L
S TA T E M E N T S
B A L A N C E  S H E E T
143
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

STATEMENT OF CHANGES IN EQUITY
for the financial year from from 1 October 2019 to 30 September 2020
€ million
Note
no.
Share capital
Capital
reserve
Effective
portion of
gains/losses
from cash
flow hedges
Equity
and debt
instruments
Currency
translation
differences
from
translating the
financial
statements of
foreign
operations
Remeasure-
ment of
defined
benefit
pension plans
1/10/20181
31
363
6,118
0
0
−738
−410
Balance sheet
changes
due to IFRS 16
0
0
0
0
0
0
1/10/2018 adjusted
363
6,118
0
0
−738
−410
Earnings after taxes
0
0
0
0
0
0
Other com-
prehensive income
0
0
2
−3
130
−94
Total com-
prehensive income
0
0
2
−3
130
−94
Capital increases
0
0
0
0
0
0
Dividends
0
0
0
0
0
0
Capital transactions
with a change in
the participation
rate
0
0
0
0
0
0
Other changes
0
0
0
0
0
3
30/9/2019
31
363
6,118
2
−3
−607
−500
1/10/2019
363
6,118
2
−3
−607
−500
Earnings after taxes
0
0
0
0
0
0
Other com-
prehensive income
0
0
−2
0
−468
7
Total com-
prehensive income
0
0
−2
0
−468
7
Capital increases
0
0
0
0
0
0
Dividends
0
0
0
0
0
0
Capital transactions
with
a change in the
participation rate
0
0
0
0
0
0
Other changes
0
−1,070
0
4
0
3
30/9/2020
31
363
5,048
1
1
−1,076
−491
1 Adjustment due to application of IFRS 9 and IFRS 15.
C O N S O L I D A T E D
F I N A N C I A L
S TA T E M E N T S
S TAT E M E N T  O F  C H A N G E S  I N  E Q U I T Y
144

€ million
Income tax
on
components
of other
compre-
hensive
income
Other reserves
retained from
earnings
Total reserves
retained from
earnings
Total
equity
before
non-
controlling
interests
Non-
controlling
interests
Total
equity
1/10/20181
91
−2,399
−3,456
3,025
41
3,066
Balance sheet changes
due to IFRS 16
0
−831
−831
−831
−1
−832
1/10/2018 adjusted
91
−3,230
−4,287
2,194
40
2,234
Earnings after taxes
0
322
322
322
11
333
Other comprehensive income
17
0
53
53
1
54
Total comprehensive income
17
322
375
375
12
387
Capital increases
0
0
0
0
0
0
Dividends
0
−254
−254
−254
−21
−275
Capital transactions with a change
in the participation rate
0
−1
−1
−1
0
−1
Other changes
−1
−2
0
0
−1
0
30/9/2019
106
−3,165
−4,167
2,314
31
2,345
1/10/2019
106
−3,165
−4,167
2,314
31
2,345
Earnings after taxes
0
460
460
460
11
471
Other comprehensive income
−2
0
−466
−466
0
−466
Total comprehensive income
−2
460
−5
−5
11
6
Capital increases
0
0
0
0
0
0
Dividends
0
−254
−254
−254
−7
−261
Capital transactions with
a change in the
participation rate
0
−1
−1
−1
1
0
Other changes
−1
1,064
1,070
0
−28
−29
30/9/2020
103
−1,896
−3,358
2,053
8
2,061
C O N S O L I D A T E D
F I N A N C I A L
S TA T E M E N T S
S TAT E M E N T  O F  C H A N G E S  I N  E Q U I T Y
145

CASH FLOW STATEMENT1
for the financial year from from 1 October 2019 to 30 September 2020
FOR THE FINANCIAL YEAR FROM FROM 1 OCTOBER 2019 TO 30 SEPTEMBER 2020
€ million
Note no.2
2018/193
2019/20
EBIT
957
257
Depreciation/amortisation/impairment losses/reversal of impairment
losses of fixed assets excl. financial investments
15
774
856
Change in provisions for pensions and other provisions
32, 33
−31
−10
Change in net working capital
26, 27, 35
27
−172
Income taxes paid
12
−215
−140
Reclassification of gains (–)/losses (+) from the disposal of fixed assets
−357
−4
Other
53
−140
Cash flow from operating activities of continuing operations
1,209
646
Cash flow from operating activities of discontinued operations
43
399
416
Cash flow from operating activities
1,608
1,062
Acquisition of subsidiaries
−1
0
Investments in property, plant and equipment and in investment
property
(excl. rights of use)
21, 22
−258
−211
Other investments
−198
−160
Investments in monetary assets
−9
−8
Disposals of subsidiaries
0
0
Divestments
20, 21, 22, 23
505
114
Disposal of financial investments
7
0
Cash flow from investing activities of continuing operations
46
−265
Cash flow from investing activities of discontinued operations
43
−136
1,271
Cash flow from investing activities
−90
1,006
Dividends paid
31
to METRO AG shareholders
−254
−254
to other shareholders
−7
−7
Redemption of liabilities from put options of non-controlling
shareholders
−2
0
Proceeds from long-term borrowings
36
6,122
6,066
Redemption of borrowings
36
−6,767
−6,487
Lease payments
−540
−547
Interest paid
−112
−82
Interest received
28
16
Other financing activities
−4
16
Cash flow from financing activities of continuing operations
−1,535
−1,280
Cash flow from financing activities of discontinued operations
43
−351
−278
Cash flow from financing activities
−1,886
−1,557
Total cash flows
−368
510
Currency effects on cash and cash equivalents
17
−29
Total change in cash and cash equivalents
−351
482
Cash and cash equivalents as of 1 October
1,395
1,044
C O N S O L I D A T E D
F I N A N C I A L
S TA T E M E N T S
C A S H  F L O W  S TA T E M E N T
146
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

less cash and cash equivalents reported in assets in accordance with
IFRS 5
97
544
Cash and cash equivalents as of 1 October
1,298
500
Cash and cash equivalents as of 30 September
1,044
1,525
less cash and cash equivalents reported in assets in accordance with
IFRS 5
544
0
Cash and cash equivalents as of 30 September
29
500
1,525
1 The cash flow statement is explained in the notes to the consolidated financial statements in no. 41 – notes to the cash flow statement.
2 Deviations from the balance sheet values result from adjusted translation effects and changes in the consolidation group.
3 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
C O N S O L I D A T E D
F I N A N C I A L
S TA T E M E N T S
C A S H  F L O W  S TA T E M E N T
147
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

NOTES
N O T E S
149
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

SEGMENT REPORTING1, 2
METRO Germany
METRO Western
Europe
(excl. Germany)
METRO Russia
METRO Eastern Europe
(excl. Russia)
€ million
2018/19
2019/20
2018/19
2019/20
2018/19
2019/20
2018/19
2019/20
External sales (net)
4,735
4,699
10,752
9,603
2,662
2,644
7,191
7,125
Internal sales (net)
16
15
2
2
38
36
0
0
Sales (net)
4,751
4,714
10,753
9,605
2,700
2,679
7,191
7,125
Adjusted EBITDA
128
125
636
394
235
224
385
371
Transformation costs
0
0
0
0
0
0
0
0
Earnings contributions
from real estate
transactions
0
0
29
1
0
0
182
2
EBITDA
128
125
665
395
235
224
567
373
Depreciation/amortisation/
impairment losses
107
114
241
257
64
64
126
133
Reversals of impairment
losses
0
0
7
0
0
0
0
0
EBIT
20
11
432
138
171
161
441
241
Investments
63
77
215
213
38
17
261
107
Non-current segment
assets
1,027
976
2,597
2,531
1,052
770
1,658
1,468
Selling space (1,000 m2)
915
915
1,531
1,533
688
682
1,391
1,386
Locations (number)
103
103
240
240
94
93
195
196
METRO Asia
Others
Consolidation
METRO
Continuing operations
€ million
2018/19
2019/20
2018/19
2019/20
2018/19
2019/20
2018/19
2019/20
External sales (net)
1,696
1,539
46
22
0
0
27,082
25,632
Internal sales (net)
0
0
667
753
−723
−806
0
0
Sales (net)
1,696
1,539
713
774
−723
−806
27,082
25,632
Adjusted EBITDA
43
0
−34
42
0
1
1,392
1,158
Transformation costs
0
0
0
47
0
0
0
47
Earnings contributions
from real estate
transactions
107
0
21
0
0
0
339
3
EBITDA
150
0
−13
−5
0
1
1,731
1,113
Depreciation/amortisation/
impairment losses
37
66
207
224
1
0
782
857
Reversals of impairment
losses
0
0
0
0
0
0
8
1
EBIT
113
−65
−220
−229
−1
1
957
257
Investments
29
24
222
189
−2
0
826
627
Non-current segment
assets
613
516
1,320
1,235
11
9
8,277
7,504
Selling space (1,000 m2)
202
206
0
0
0
0
4,728
4,723
Locations (number)
46
46
0
0
0
0
678
678
1 Segment reporting is explained in the notes to the consolidated financial statements in no. 42 – segment reporting.
2 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
N O T E S
S E G M E N T  R E P O R T I N G
150
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

NOTES TO THE GROUP ACCOUNTING PRINCIPLES AND METHODS
Accounting principles
METRO AG, the parent company of the METRO group (hereinafter referred to as METRO), is a
German corporation with registered office at METRO-Straße 1 in 40235 Düsseldorf, Germany. The
company is registered in the commercial register at the District Court in Düsseldorf under HRB
79055.
These consolidated financial statements of METRO AG as of 30 September 2020 were
prepared in accordance with the International Financial Reporting Standards (IFRS).
The consolidated financial statements in their present form comply with the stipulations of
§ 315e of the German Commercial Code (HGB). Together with Regulation (EU) No. 1606/2002 of
the European Parliament and of the Council of 19 July 2002 on the application of international
accounting standards, they form the legal basis for group accounting according to international
standards in Germany.
The date at which the Management Board of METRO AG signed the consolidated financial
statements (1 December 2020) also represents the date at which the Management Board
released the consolidated financial statements for publication and submitted them to the
Supervisory Board.
The income statement has been prepared using the cost of sales method.
Assets and liabilities are classified as current if the respective asset is expected to be realised
or the liability settled within 12 months of the closing date.
Certain items in the income statement and the balance sheet have been combined to increase
transparency and informative value. These items are explained separately in the notes.
The consolidated financial statements are presented in euros. All amounts are stated in
million euros (€ million) unless otherwise indicated. Amounts below €0.5 million are rounded
and reported as €0 million. Individual figures may not add up to the stated sum precisely due to
rounding.
The following accounting and measurement methods were used in the preparation of the
consolidated financial statements.
Application of new accounting methods
Accounting standards applied for the first time in financial year 2019/20
The following IFRS, issued or revised by the International Accounting Standards Board (IASB),
that were binding for METRO AG in financial year 2019/20 were applied for the first time in these
consolidated financial statements:
IFRS 16 (Leases)
The key change of IFRS 16 compared to IAS 17 concerns the lessee accounting model. IFRS 16
introduces a uniform accounting model for lessees after the recognition of a right-of-use asset
for each asset transferred for use. It also references a corresponding liability in the amount of
the present value of the future lease payments.
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
151
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Exercising of options
Lessees can choose from several policy options. For accounting and measurement, they have the
option to build a portfolio of leases with similar characteristics of which METRO did not make
use of. METRO is exercising the option of not applying the right-of-use approach to leases
involving assets of minor value (mainly business and office equipment) and short-term leases
(maximum terms of 12 months). Rental expenses for these assets were therefore recognised in
the income statement.
The option to separate lease and non-lease components (service) is not exercised and the
non-lease components are included in the right-of-use assets to be recognised.
Furthermore, the option to capitalise leased intangible assets was not exercised. They still fall
within the scope of IAS 38.
METRO as lessee
The company recognises an asset with a right of use and a lease liability at the inception of the
lease. The right of use is initially measured at cost, which is the initial amount of the lease
liability, adjusted for any lease payments made on or before the commencement date, plus any
initially incurred direct costs, minus any incentives received. The right of use is subsequently
amortised on a straight-line basis over the shorter lease term or the useful life of the underlying
asset. Moreover, the right of use is reduced by any impairment loss and adjusted for certain
remeasurements of the lease liabilities. The lease liability is initially measured at the present
value of the lease payments, which are discounted at the interest rate inherent in the lease
agreement or, if this interest rate cannot be readily determined, at the company’s incremental
borrowing rate.
The lease payments included in the measurement of the lease liability consist of the following
items:
Fixed payments, including substantially fixed payments
Variable lease payments that depend on an index or instalment, which are initially valued
using the index or instalment on the starting date
Amounts expected to be paid under a residual value guarantee
Exercise price of a call option which the company assumes with sufficient certainty will be
exercised
Lease payments in an optional extension period, if the company exercises an extension option
with sufficient certainty
Penalties for early termination of a lease, unless the company is reasonably certain that it will
not terminate the lease prematurely.
The lease liability is measured at amortised cost using the effective interest method. It is
remeasured if the future lease payments change as a result of a change in the index or interest
rate, if the company’s estimate of the amount expected to be payable under a residual value
guarantee changes, or if the company changes its assessment of whether it will exercise a
purchase, renewal or termination option. If the lease liability is remeasured in this way, a
corresponding adjustment to the carrying amount of the right of use is made or recognised in
the income statement if the carrying amount of the right of use is reduced to 0. Rights of use
are disclosed in the balance sheet under property, plant and equipment. Rights of use that meet
the definition of investment property are included under ‘Investment properties’ and are
recognised separately in the financial statements. Lease liabilities are included in ‘Other current
financial liabilities’ and ‘Other non-current financial liabilities’.
In the cash flow statement, the company has classified the repayment of lease payments and
the interest portion within financing activities. Lease payments are divided into a redemption
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
152
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

and an interest portion and are included in the cash flow statement in the line ‘Redemption of
lease liabilities’. Lease payments for short-term leases, lease payments for leases of low-value
assets and variable lease payments not included in the measurement of the lease liability are
classified as cash flows from operating activities.
METRO as lessor
The accounting policies that applied to METRO as a lessor under IAS 17 do not differ materially
from the new rules under IFRS 16. However, there are differences with regard to subleases, which
are classified under IFRS 16 with reference to the right of use and not, as previously under IAS 17,
by reference to the underlying asset. As a result, the number of subleases classified as finance
leases has risen, and the amount of receivables to be reported in the balance sheet has
increased accordingly.
Even if the company is the lessor in a sublease, it determines at the inception of the lease
whether each lease is a finance lease or an operating lease. To classify each lease, the company
makes an overall assessment of whether the lease generally transfers all the risks and benefits
associated with ownership of the underlying asset. If this is the case, the lease is a finance lease;
otherwise, it is an operating lease. As part of this assessment, the company considers certain
indicators, for example, whether the lease covers most of the lease term of the main lease of the
asset.
If the lease is a finance lease, a net investment (receivable) equal to the discounted future
lease payments to be received is recognised in the balance sheet. The interest rate underlying
the lease is used to determine the discount. Interest income from leases is disclosed in cash flow
from operating activities.
If the company is an intermediate lessor, it accounts for its interest in the main lease
agreement and the sub-lease agreement separately. If a main lease is a short-term lease to which
the company applies the exception described above, the company classifies the sub-lease as an
operating lease. The company recognises lease payments it receives under operating leases as
rental income.
Sale-and-leaseback transactions
If a sale and leaseback transaction involves the sale of the asset as defined by IFRS 15 (Revenue
from Customer Agreements), the lessee (seller) must derecognise the asset and recognise any
gain or loss relating to the rights transferred to the lessor (buyer). Retrospective application of
the new accounting treatment of sale and leaseback transactions is not required and was thus
not applied to METRO.
METRO is applying the standard fully retrospectively, which requires restatement of previous
year’s comparative figures.
For further information, please refer to No. 48 Adjustment of comparative figures for 2018/19 due to IFRS 16
page
255 .
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
153
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Additional IFRS amendments
Other accounting rules to be applied for the first time in financial year 2019/20 without material
effects on METRO are:
IAS 12 – Income Taxes (clarification as part of the annual improvements cycle 2015–2017:
Income Tax Consequences of Payments on Instruments Classified as Equity)
IAS 19 – Employee Benefits (clarification: Plan Amendment, Curtailment or Settlement)
IAS 23 – Borrowing Costs (clarification as part of the annual improvements cycle 2015–2017:
Borrowing Costs Eligible for Capitalisation)
IAS 28 – Investments in Associates and Joint Ventures (clarification: Long-term Interests in
Associates and Joint Ventures)
IFRS 3 – Business Combinations/IFRS 11 – Joint Arrangements (clarification as part of the
annual improvements cycle 2015–2017: Previously Held Interest in a Joint Operation)
IFRS 9 – Financial Instruments (clarification: Prepayment Features with Negative
Compensation)
IFRIC 23 – Uncertainty over Income Tax Treatments (IFRIC interpretation to be applied for the
first time)
In addition, METRO is voluntarily applying the amendments to IFRS 16 (Leases) adopted by the
IASB in May 2020 early, which made it possible to simplify the accounting treatment of
concessions granted by lessors to lessees due to the Covid-19 pandemic.
Accounting standards that were published but are not yet applied in financial year 2019/20
A number of other standards and interpretations amended or newly issued by the IASB were not
yet applied by METRO in financial year 2019/20 because they were either not yet mandatory or
have not yet been endorsed by the European Commission.
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
154
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Standard/
Interpretation Titel
Effective
date
according
to IFRS1
Application
at
METRO AG
from2
Endorsed
by EU3
Amendments
to IFRS 1
Changes resulting from the annual improvements cycle 2018–2020
(Subsidiary as a First-time Adopter)
1/1/2022
1/10/2022
No
Amendments
to IFRS 3
Business Combinations (Definition of a Business)
1/1/2020
1/10/2020
Yes
Amendments
to IFRS 3
Business Combinations (Reference to the Conceptual Framework)
1/1/2022
1/10/2022
No
Amendments
to IFRS 4
Insurance Contracts (Extension of the Temporary Exemption from
Applying IFRS 9)
1/1/2023
1/10/2023
No
Amendments
to IFRS 9
Changes resulting from the annual improvements cycle 2018–2020
(Fees in the 10 % Test for Derecognition of Financial Liabilities)
1/1/2022
1/10/2022
No
Amendments
to IFRS 9/
IFRS 7/
IAS 39
Financial Instruments (Interest Rate Benchmark Reform – Phase 1)
1/1/2020
1/10/2020
Yes
Amendments
to IFRS 9/
IFRS 7/
IFRS 16/
IAS 39
Financial Instruments (Interest Rate Benchmark Reform – Phase 2)
1/1/2021
1/10/2021
No
Amendments
to IFRS 10/
IAS 28
Consolidated Financial Statements/Investments in Associates and Joint
Ventures
(Sale or Contribution of Assets between an Investor and its Associate or
Joint Venture)
Unknown4
Unknown4
No
Amendments
to IFRS 16
Leases (Covid-19-Related Rental Concessions)
1/6/2020
1/10/2019
Yes
IFRS 17
Insurance Contracts – including adopted amendments to the standard
1/1/2023
1/10/2023
No
Amendments
to IAS 1
Presentation of Financial Statements (Classification of Liabilities as
Current or Non-current)
1/1/2023
1/10/2023
No
Amendments
to IAS 1/
IAS 8
Definition of ‘Material’
1/1/2020
1/10/2020
Yes
Amendments
to IAS 16
Property, Plant and Equipment (Proceeds before Intended Use)
1/1/2022
1/10/2022
No
Amendments
to IAS 37
Provisions, Contingent Liabilities and Contingent Assets
(Onerous Contracts – Costs of Fulfilling a Contract)
1/1/2022
1/10/2022
No
Amendments
to IAS 41
Changes resulting from the annual improvements cycle 2018–2020
(Taxation in Fair Value Measurement)
1/1/2022
1/10/2022
No
Changes to
the Con-
ceptual
Framework
Conceptual Framework for Financial Reporting
(Amendments to References to the Conceptual Framework in
IFRS Standards)
1/1/2020
1/10/2020
Yes
1 Without earlier application (exception: IFRS 16 – Covid-19-Related Rental Concessions).
2 Application as of 1 October due to deviation of financial year from calendar year, if the approval for use (endorsement) has been granted by the EU.
3 As of: Early November 2020.
4 Indefinite deferral of effective date by IASB.
Effect of the additional IFRS amendments
The first-time application of the other standards and interpretations listed in the above table as
well as amendments to IFRS is not expected to have a material impact on the group’s asset,
financial and earnings position.
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
155
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Consolidation group
Besides METRO AG, all companies indirectly or directly controlled by METRO AG are included in
the consolidated financial statements if these companies individually or as a group are not
immaterial to the consolidated financial statements. Control exists if there is a possibility to
control a company’s financial and business policy through a majority of voting rights or
according to the Articles of Association, company contract or contractual agreement in order to
benefit from this company’s business activities.
Including METRO AG, 177 German (30/9/2019: 200) and 174 international (30/9/2019: 223)
companies are included in the consolidated financial statements.
The group of consolidated companies changed as follows in financial year 2019/20:
As of 1/10/2019
423
Changes in financial year 2019/20
Companies merged with other consolidated subsidiaries
7
Disposal of shares
80
Other disposals
4
Newly founded companies
17
Acquisitions
2
As of 30/9/2020
351
Deconsolidated companies are treated as group companies up to the date of their disposal.
The sales include the disposals from the divestment of METRO China (46 companies) and
from the divestment of the hypermarket business (34 companies).
The remaining disposals relate primarily to liquidations. Effects from changes in the
consolidation group that are of special significance are explained separately in the notes relating
to the respective items.
For materiality reasons, 1 (30/9/2019: 3) affiliated subsidiary is not fully consolidated.
Investments accounted for using the equity method
25 associated companies (30/9/2019: 24) and 9 joint ventures (30/9/2019: 8) are accounted in
the consolidated financial statements using the equity method.
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
156
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

OVERVIEW OF SUBSIDIARIES WITH SIGNIFICANT NON-CONTROLLING INTERESTS
€ million
30/9/2019
Non-controlling
interests
Name
Registered
office
in %
as of
30/9/
2019
Dividends
paid1
Non-
current
assets
Current
assets
Non-
current
liabilities
Current
liabilities
Sales
revenues
Profit
shares1
METRO Jinjiang Cash &
Carry Co., Ltd.
Shanghai,
China
10.00
14
13
298
897
3
1,045
2,812
5
METRO Cash & Carry
Österreich GmbH
Vösendorf,
Österreich
27.00
8
2
80
129
31
135
760
3
1 Attributable to non-controlling interests.
€ million
30/9/2020
Non-controlling
interests
Name
Registered
office
in %
as of
30/9/
2020
Dividends
paid1
Non-
current
assets
Current
assets
Non-
current
liabilities
Current
liabilities
Sales
revenues
Profit
shares1
METRO Cash &
Carry Österreich
GmbH
Vösendorf,
Austria
27.00
9
2
81
139
35
144
736
2
1 Attributable to non-controlling interests.
A complete list of group companies and associates is shown in no. 57 – overview of the major fully consolidated
group companies
page 277 . In addition, a complete list of all group companies and associates is shown in no. 59 –
affiliated companies of the group METRO AG as of 30 September 2020 pursuant to § 313 of the German Commercial
Code
page 283 .
Consolidation principles
The financial statements of German and foreign subsidiaries included in the consolidated
accounts are prepared using uniform accounting and measurement methods as required by
IFRS 10 (Consolidated Financial Statements).
Subsidiaries that, unlike METRO AG, do not close their financial year on 30 September
prepared interim financial statements for consolidation purposes. In principle, subsidiaries are
fully consolidated insofar as their consolidation is of material importance to the provision of a
true and fair view of the asset, financial and earnings position.
In accordance with IFRS 3 (Business Combinations), capital consolidation is effected using
the purchase method. In the case of business combinations, the carrying amounts of the
investments are offset against the revalued pro rata equity of the subsidiaries as of their
acquisition dates. Any positive differences remaining after the allocation of hidden reserves and
liabilities are capitalised as goodwill. Goodwill is tested for impairment regularly once a year.
In addition, in the case of company acquisitions, hidden reserves and liabilities attributable to
non-controlling interests are disclosed and recognised in equity as non-controlling interests. In
accordance with IFRS 3, any negative differences remaining after the allocation of hidden
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
157
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

reserves and liabilities as well as after a reassessment during the period in which the business
combination took place are recognised through profit or loss.
Acquisitions of additional equity interests in companies where a controlling interest has
already been acquired are recognised as equity transactions.
Investments in associates and joint ventures are accounted for using the equity method and
treated in accordance with the principles applying to full consolidation, with existing goodwill
being included in the amount capitalised for such investments. The disclosure of income from
investments in associates, joint ventures and joint operations in the income statement depends
on whether the investee carries out operating or non-operating activities. Operational activities
include the wholesale businesses as well as related support activities (for example rent/lease of
real estate, procurement, logistics). Income from operating associates, joint ventures and joint
operations is recognised in earnings before interest and taxes (EBIT); income from non-
operating entities is however recognised in the net financial result.
Any deviating accounting and measurement methods used in the financial statements of
entities accounted for by applying the equity method are retained as long as they do not
substantially contradict METRO’s uniform accounting and valuation methods.
According to IFRS 11 (Joint Arrangements), the individual venturers in joint operations
recognise their portion of jointly held assets and jointly incurred liabilities in their own balance
sheets.
Intra-group sales, expenses and income or profits and losses as well as receivables and
liabilities and/or provisions are eliminated. Intercompany results in fixed assets or inventories
resulting from intra-group transactions are eliminated unless they are of minor significance. In
accordance with IAS 12 (Income Taxes), deferred taxes are recognised for consolidation
procedures.
Unrealised gains from transactions with companies accounted for using the equity method
are recognised as a reduction of the carrying amount of the investment in the amount of the
group's share of the profit.
In joint arrangements, all venturers recognise the respective portion of sales attributable to
them as well as their own income and expenses resulting from the joint arrangement in their
income statement.
If a reduction in the shareholding quota in a subsidiary or the complete disposal of the shares
entails a loss of control, full consolidation of the subsidiary is terminated when control no longer
exists. All assets and liabilities that were previously fully consolidated will then be derecognised
at amortised group carrying amounts (deconsolidation). Any investments held after the loss of
control are recognised at fair value as a financial instrument according to IFRS 9 or as an
investment according to IAS 28 using the equity method.
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
158
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Currency translation
Foreign currency transactions
In the separate financial statements of the subsidiaries and the parent company, transactions in
foreign currency are recognised at the rate prevailing on the transaction date. Monetary assets
and liabilities in foreign currency are valued at the closing date exchange rate. Non-monetary
assets and liabilities that are measured at fair value in foreign currency are translated at the rate
prevailing at the time the fair value was determined. Non-monetary items measured at historical
acquisition or production costs in foreign currency are translated at the rate of the transaction
date.
In principle, gains and losses incurred by exchange rate fluctuations until the closing date are
recognised in profit or loss. However, the currency translation differences resulting from the
subsequent measurement of the following assets and liabilities are reported under reserves
retained from earnings outside of profit or loss:
Receivables and liabilities in foreign currency, which must be regarded as (part of) a net
investment in a foreign operation
Equity instruments measured at fair value through other comprehensive income
Hedging instruments qualifying for cash flow hedges
Foreign operations
The annual financial statements of foreign subsidiaries are prepared according to the functional
currency concept of IAS 21 (The Effects of Changes in Foreign Exchange Rates) and translated
into euros for consolidation purposes in case their functional currency is a currency other than
the euro. The functional currency is defined as the currency of the primary economic
environment in which the subsidiary operates. Since all companies included in the consolidated
financial statements operate as financially, economically and organisationally autonomous
entities, their respective local currency is the functional currency. Necessary translations of
assets and liabilities are made at the exchange rate on the closing date. As a general rule,
income statement items are translated at the average exchange rate during the financial year.
Exchange rate differences arising from the translation of the financial statements of foreign
subsidiaries are recognised directly in equity and are reported separately under reserves
retained from earnings in other comprehensive income. To the extent that the parent company
does not own all equity interest in foreign subsidiaries, the relevant share of currency differences
is allocated to the non-controlling interests.
Currency differences are recognised through profit or loss in the net financial result in the
year in which the operations of a foreign subsidiary, whose functional currency is not the euro,
are deconsolidated or terminated. In a partial disposal in which a controlling interest in such a
foreign subsidiary is retained, the relevant share of cumulated currency differences is allocated
to the non-controlling interests. Should associates or jointly controlled entities whose functional
currency is not the euro be partially sold without the loss of significant influence or joint control,
the relevant share of the cumulated currency differences is recognised in profit or loss.
In financial year 2019/20, no functional currency of a consolidated company was classified as
hyperinflationary as defined by IAS 29 (Financial Reporting in Hyperinflationary Economies).
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
159
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The following exchange rates being of major significance for METRO were applied in the
translation of key currencies outside the European Monetary Union:
Average exchange rate per €
Exchange rate at closing date per €
2018/19
2019/20
30/9/2019
30/9/2020
Bulgarian lev
BGN
1.95583
1.95583
1.95583
1.95583
Chinese renminbi
CNY
7.75616
7.84515
7.77840
7.97200
Croatian kuna
HRK
7.41336
7.50832
7.41100
7.55650
Czech koruna
CZK
25.74114
26.17769
25.81600
27.23300
Danish krone
DKK
7.46385
7.46137
7.46620
7.44620
Egyptian pound
EGP
19.48706
17.84167
17.75290
18.45160
Hong Kong dollar
HKD
8.83913
8.70568
8.53680
9.07420
Hungarian forint
HUF
323.02241
343.96227
334.83000
365.53000
Indian rupee
INR
79.65100
82.28265
77.16150
86.29900
Indonesian rupiah
IDR
16,160.21000
16,232.86000
15,456.94000
17,497.84000
Japanese yen
JPY
124.14090
120.71530
117.59000
123.76000
Kazakhstani tenge
KZT
427.11378
451.86301
423.49000
502.14000
Malaysian ringgit
MYR
4.67447
4.72060
4.55920
4.86530
Moldovan leu
MDL
19.72835
19.46755
19.39590
19.82730
Myanmar kyat
MMK
1,728.93370
1,599.26967
1,675.90000
1,532.00000
Norwegian krone
NOK
9.73765
10.55535
9.89530
11.10080
Pakistani rupee
PKR
163.05191
179.88229
170.90740
194.33550
Philippine peso
PHP
59.03683
56.30047
56.55300
56.77400
Polish zloty
PLN
4.30027
4.38844
4.37820
4.54620
Pound sterling
GBP
0.88412
0.87833
0.88573
0.91235
Romanian leu
RON
4.71851
4.81183
4.74960
4.87250
Russian rouble
RUB
73.82877
77.50392
70.75570
91.77630
Serbian dinar
RSD
118.06690
117.56680
117.52830
117.58030
Singapore dollar
SGD
1.54212
1.54913
1.50600
1.60350
Swiss franc
CHF
1.12274
1.07494
1.08470
1.08040
Turkish lira
TRY
6.32660
7.29146
6.14910
9.09900
UAE dirham
AED
4.14292
4.11363
4.00630
4.30235
Ukrainian hryvnia
UAH
30.17616
29.09853
26.34863
33.16430
US dollar
USD
1.12799
1.11982
1.08890
1.17080
Vietnamese dong
VND
25,903.60000
25,953.36000
25,457.19000
27,131.35000
Income statement
Recognition of income and expenses
Net sales are recognised in accordance with IFRS 15 (Revenue from Contracts with Customers)
when the respective performance obligations have been met by transferring goods to wholesale
customers or providing services. The goods are deemed to have been transferred at the time at
which the customer gains control over them. This applies to store-based retail and wholesale as
well as to the delivery business (Food Service Distribution, FSD). In these cases, cash payment
or payment within a short time after delivery of the product (credit purchase) is usually agreed
with the customer. Significant financing components are usually not included in the contracts
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
160
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

with customers. For services, control over the services is transferred over time, thus fulfilling the
performance obligation. Revenue is recognised in the amount of the consideration received or
expected to be received in exchange for the goods or services.
Under certain wholesale business models, METRO customers are granted the right to
exchange or return goods under certain conditions or in accordance with contractual
agreements or on a legal basis. Refund liabilities that are based on empirical data regarding
return quotas and periods are recorded for expected returns in this context. Assets for the right
to recover products from a customer, on settling these refund liabilities, are measured at the
initial carrying amount of the respective inventories (less settlement costs and any indicated
impairment) and reported under ‘other assets’.
METRO grants various types of standardised, performance-based rebates if certain
predefined conditions are met. Examples include rebates for achieving certain sales volumes
with a customer and for customer loyalty. As soon as it can be assumed that a customer fulfils
the conditions for granting the rebate, a portion of the revenue is deferred and recognised as a
contract liability. Such contract liabilities are derecognised when the rebate is redeemed by the
customer or when the probability that the customer will enforce its rights is remote. The rebates
are regularly redeemed by customers within one year of the respective recognition of a contract
liability.
Some of the franchise models offered by METRO include multi-component contracts with
customers being offered a bundle of different franchise products and services. Individual
contractual components are made available to customers in subsidised form, so that the entire
agreed consideration is allocated to the individual components in accordance with the relative
stand-alone selling prices.
In some cases, METRO acts as an agent for the delivery of goods or the provision of services.
In these cases, METRO recognises the expected fee or commission as revenue.
Operating expenses are recognised as expenses upon utilisation of the service or on the date
of their causation.
METRO’s financial result consists primarily of interest income and expenses. Interest is
recognised as income or expenses and, where applicable, on an accrual basis using the effective
interest method. Interest on borrowing that is directly attributable to the acquisition or
production of a so-called qualified asset represent an exception, as they must be included in the
acquisition or production costs of the asset capitalised pursuant to IAS 23 (Borrowing Costs).
Dividends paid by companies in which METRO holds an interest and which are not accounted for
using the equity method are generally recognised as income when the legal claim to payment
arises.
Income taxes
Income taxes concern direct taxes on income and deferred taxes. As a general rule, they are
recognised through profit or loss unless they are related to business combinations or an item
that is directly recognised in equity or other comprehensive income.
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
161
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Balance sheet
Goodwill
Goodwill is regularly tested for impairment once a year on 30 June – or more frequently if
changes in circumstances indicate a possible impairment. If an impairment occurred, an
impairment loss is recognised through profit or loss. To determine a possible impairment, the
recoverable amount of a cash-generating unit is compared to the corresponding carrying
amount of the cash-generating unit. The recoverable amount is the higher of the value in use
and the fair value less costs of disposal. An impairment of the goodwill allocated to a cash-
generating unit occurs only if the recoverable amount is lower than the total amount of the unit’s
relevant carrying amount. No reversal of an impairment loss is recognised if the reasons for the
impairment in previous years have ceased to exist.
Other intangible assets
Purchased other intangible assets are recognised at cost of purchase. In accordance with IAS 38
(Intangible Assets), internally generated intangible assets are recognised at their production
cost. Research costs, in contrast, are not recognised as assets, but recognised as expenses when
they are incurred. The production costs include all expenditures directly attributable to the
development process, unless they are explicitly excluded from being a component of the cost of
an internally generated intangible asset.
Direct costs
Direct material costs
Direct production costs
Special direct production costs
Overhead
(directly attributable)
Material overhead
Production overhead
Depreciation/amortisation/impairment losses
Development-related administrative costs
Borrowing costs are factored into the determination of production costs only in case the
intangible asset is a so-called qualified asset pursuant to IAS 23 (Borrowing Costs). Qualified
assets are defined as non-financial assets that take a substantial period of time to be prepared
for their intended use or sale.
All other intangible assets with a finite useful life are subject to straight-line amortisation.
Capitalised internally created and purchased software as well as similar intangible assets are
amortised over a period of up to 10 years, while licences are amortised over their useful lives.
Intangible assets with an indefinite expected useful life are not subject to scheduled
amortisation, but are subject to impairment testing at least once a year. Impairment losses and
reversed impairment losses are recognised through profit or loss in consideration of the
historical cost principle.
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
162
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Property, plant and equipment
Property, plant and equipment are recognised at acquisition or production costs according to
IAS 16 (Property, Plant and Equipment). The production cost of internally generated assets
includes both direct costs and directly attributable overhead. Borrowing costs are only
capitalised in relation to so-called qualified assets as a component of acquisition or production
costs. In line with IAS 20 (Accounting for Government Grants and Disclosure of Government
Assistance), investment grants received are offset against the acquisition or production costs of
the corresponding asset. Dismantling and removing obligations are included in the acquisition or
production costs at the discounted settlement amount. Subsequent acquisition or production
costs of property, plant and equipment are only capitalised if they result in a higher future
economic benefit of the tangible asset.
Property, plant and equipment are solely depreciated on a straight-line basis. Throughout the
group, depreciation is based on the following expected useful lives:
Buildings
10 to 33 years
Leasehold improvements
8 to 15 years or shorter lease term
Business and office equipment
3 to 13 years
Machinery
3 to 8 years
In a few justified exceptional cases, the expected useful life of buildings is 40 years.
Capitalised costs of dismantling and removing are depreciated over the expected useful life
of the asset.
According to IAS 36 (Impairment of Assets), an impairment test will be carried out if there
are any indications of impairment of property, plant and equipment or of a cash-generating unit
(CGU). Impairment losses are recognised if the recoverable amount is less than its carrying
amount. If the reasons for the impairment have ceased to exist, impairment losses are reversed
up to the amount of amortised acquisition or production costs had no impairment loss been
recognised in previous periods.
Usufructuary rights
See IFRS 16 (Leases) in the section ‘Application of new accounting standards’.
Investment properties
In accordance with IAS 40 (Investment Property), investment properties comprise real estate
assets that are held to earn rentals or for capital appreciation, or both. Analogous to property,
plant and equipment, such assets are recognised at acquisition or production costs less
depreciation and if required - impairment losses (cost model). Owned investment properties are
depreciated using the straight line method, considering an expected useful life of 15 to 33 years.
Investment properties, where rights of use are involved, are depreciated on a straight-line basis
over a useful life of 5 to 15 years. In addition, the fair value of these real estates is determined
based on accepted valuation methods, taking into account project development opportunities.
The fair values are disclosed in the notes.
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
163
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Financial assets
Unless associated companies or joint ventures as defined by IAS 28 (Investments in Associates
and Joint Ventures) are involved, to which the equity method is applied, financial assets are
accounted for in accordance with the provisions of IFRS 9 (Financial Instruments).
Financial assets are recognised in the consolidated balance sheet when METRO becomes a
contractual party to a financial instrument. Recognition is effected at the trade date. Financial
assets are derecognised if the contractual rights to payments from the financial assets no longer
exist or the financial assets with all material risks and rewards are transferred to another party
and METRO cannot control the financial assets after the transfer. When the uncollectability of
receivables is finally determined, they are derecognised.
Financial assets are measured at fair value upon initial recognition. The transaction costs
directly attributable to the acquisition must be taken into account, unless the financial
instruments are subsequently measured at fair value through profit or loss.
The subsequent measurement of financial assets is based on the allocation of the respective
financial asset to one of the categories described below. The classification is determined by
whether the so-called cash flow characteristics are met as well as by the business model used to
manage the respective financial asset (or a portfolio of financial assets). The cash flow condition
is met if the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding. With
regard to potential business models, a distinction must be made for these financial assets
meeting the cash flow condition between the objectives
to either hold the financial asset in order to collect contractual cash flows (hold)
or to both, hold them in order to collect contractual cash flows and sell them (hold and sell).
Using these classification criteria, the individual financial asset is assigned to one of the
following classes at initial recognition:
Measured at amortised cost (AC), provided the ‘hold’ criterion is met
Measured at fair value through other comprehensive income (FVOCI), if the ‘hold and sell’
criterion is met
Measured at fair value through profit or loss (FVPL) in all other cases
Derivative financial instruments that are not designated as part of a hedge accounting
relationship for accounting purposes are measured at fair value.
METRO does not make use of the option to measure financial assets at fair value through
profit or loss upon initial recognition (fair value option).
With regard to the financial assets recognised at amortised cost (AC), impairments are
recognised as expected losses, regardless of the existence of actual default events. However, if
there is objective evidence that contractually agreed cash flows of a financial asset are likely to
partially or completely default, they are recorded as specific bad debt allowances. If these
indications cease to exist, impairment losses are reversed up to the amount of the carrying
amount that would have resulted if no default event had occurred. METRO determines the
expected losses on trade receivables using the so-called simplified approach by using a
provision matrix structured according to various (past-due) maturities. Expected losses for other
financial assets are determined in accordance with the so-called general approach. Impairment
losses are generally recognised in separate accounts.
Changes in the fair value of financial assets measured at fair value through other
comprehensive income (FVOCI) are recognised in other comprehensive income and reclassified
to the income statement when the assets are sold. Impairment losses on financial assets in the
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
164
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

FVOCI category are determined in the same way as impairment losses on financial assets in the
AC category and recognised in profit or loss.
In accordance with the provisions of IFRS 9, equity instruments held are either measured at
fair value through profit or loss (FVPL) or at fair value through other comprehensive income
without reclassification (FVOCInR).
Cash flow hedges: as part of cash flow hedging, which continues to be accounted for in
accordance with IAS 39, METRO hedges the exposure to variability in future cash flows. For this
purpose, future underlying transactions and related hedging instruments are designated as
hedging relationships for accounting purposes. The effective portion of changes in the fair value
of the hedging instrument that regularly meets the definition criteria of a derivative is initially
recognised directly in equity under consideration of deferred taxes. The ineffective portion is
recognised directly in profit or loss. For future transactions that result in the recognition of a
non-financial asset or a non-financial liability, the cumulative changes in the fair value of the
hedging instrument, which are recognised in other comprehensive income, are removed and
included in the initial cost of the other carrying amount of the asset or liability. In case the
hedging transaction relates to financial assets, financial liabilities or future transactions, the
changes in fair value of the hedging instrument are transferred from other comprehensive
income to profit or loss in the reporting period in which the hedged item is recognised in the
income statement. The term of the hedging instrument is aligned to coincide with the
occurrence of the future transaction.
Other financial and other non-financial assets
The assets reported under other financial assets are generally measured at amortised cost, and
impairments are determined for the reporting year in accordance with the general approach to
determine expected credit losses.
Other financial assets also include derivative financial instruments that are measured at fair
value through profit or loss.
Deferred income presented pertains to transitorily deferred charges.
Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are determined using the asset-liability method in
accordance with IAS 12 (Income Taxes). Deferred tax assets and liabilities are recognised for
temporary differences between the carrying amounts of these assets or liabilities in the
consolidated financial statements and their tax base. Deferred tax assets are also considered for
unused tax losses and interest carry-forwards.
Deferred tax assets are recognised only to the extent that it is probable that sufficient taxable
profit will be available in the future to allow the corresponding benefit of that deferred tax asset
to be realised.
Deferred tax assets and deferred tax liabilities are netted if these income tax assets and
liabilities concern the same tax authority and refer to the same tax subject or a group of
different tax subjects that are jointly assessed for income tax purposes. Deferred tax assets are
remeasured at the end of each reporting period and adjusted if necessary.
Deferred taxes are determined on the basis of the tax rates expected in each country upon
realisation. In principle, these are based on enacted laws or legislation that has been passed at
the time of the closing date.
The assessment of deferred taxes reflects the tax consequence arising from METRO’s
expectations as of the reporting date with regard to the manner in which the carrying amounts
of the assets will be realised or the liabilities will be settled.
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
165
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Inventories
In accordance with IAS 2 (Inventories), merchandise held as inventories is reported at cost of
purchase. The cost of purchase is determined either on the basis of a separate measurement of
additions or by means of the weighted average cost method. Considerations from suppliers to
be classified as a reduction in the cost of purchase is deducted when the costs of acquisition are
determined.
Merchandise is measured as of the reporting date at the lower of cost or net realisable value.
Merchandise is written down on a case-by-case basis if the net realisable value declines below
the carrying amount of the inventories. Such net realisable value corresponds to the anticipated
estimated selling price less the estimated direct costs necessary to make the sale.
When the reasons for a write-down of the merchandise have ceased to exist, the previously
recognised impairment loss is reversed.
Trade receivables
Trade receivables are recognised at amortised cost. For the reporting period, expected
impairments determined on the basis of a provision matrix are taken into account. If there are
further doubts about their recoverability, the trade receivables are recognised at the lower
present value of the estimated future cash flows.
Income tax assets and liabilities
The income tax assets and liabilities presented relate to domestic and foreign income taxes for
the reporting period as well as prior periods. They are determined in compliance with the tax
laws of the respective country.
Income tax liabilities are calculated in accordance with the provisions of IFRIC 23. IFRIC 23
clarifies the application of recognition and measurement requirements under IAS 12 where there
is uncertainty about the treatment of income tax. Recognition and measurement requires
estimates and assumptions to be made, for example whether an estimate is made separately or
together with other uncertainties, whether a probable or expected value for the uncertainty is
used, and whether changes have occurred compared to the previous period. The detection risk
is irrelevant for the accounting treatment of uncertain balance sheet items. Accounting is based
on the assumption that the tax authorities will investigate the matter in question and that they
have all relevant information at their disposal.
The group companies are subject to income taxes in various countries worldwide. In assessing
the worldwide income tax assets and liabilities, the interpretation of tax regulations in particular
may be subject to uncertainty. It cannot be ruled out that the respective tax authorities may
have different views on the correct interpretation of tax regulations. Changes in assumptions
about the correct interpretation of tax standards, for example due to changes in case law, are
reflected in the accounting treatment of uncertain income tax assets and liabilities in the
relevant financial year.
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
166
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Cash and cash equivalents
Cash and cash equivalents comprise cheques, cash on hand, bank deposits and other short-term
liquid financial assets, such as accessible deposits on lawyer trust accounts or cash in transit,
with an original term of up to 3 months. They are valued at their respective nominal values.
Non-current assets held for sale, liabilities related to assets held for sale and discontinued
operations
In accordance with IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations), an
asset is classified as a non-current asset held for sale if the respective carrying amount will be
recovered principally through a disposal transaction rather than through continuing use.
Analogously, liabilities related to assets held for sale are recognised separately in the balance
sheet. A sale must be feasible in practice and be planned for execution within the subsequent 12
months. Immediately before the initial classification of the assets and liabilities as held for sale,
the carrying amounts of the assets and liabilities are measured in accordance with applicable
IFRS. In case of reclassification, the assets and liabilities of the disposal group are measured at
the lower of their carrying amount and the fair value less costs of disposal and reported
separately in the balance sheet. Discontinued operations are a component of an entity that
either has been disposed of or is classified as held for sale and represents a separate major line
of business or a separate geographical area of operations.
In the present financial statements for the period ending on 30 September 2020, comparative
figures and previous year’s figures relating to the hypermarket business and METRO China have
been omitted.
Employee benefits
Employee benefits include:
Short-term employee benefits
Post-employment benefits
Other long-term employee benefits
Termination benefits
Share-based payment
Short-term employee benefits include wages and salaries, social security contributions, paid
annual leave and paid sick leave and are recognised as liabilities at the amount (to be) disbursed
as soon as the associated job performance has been rendered.
Post-employment benefits are provided in the context of defined benefit or defined
contribution plans. In the case of defined contribution plans, the obligation to make periodic
contributions to an external pension provider is recognised as expenses for post-employment
benefits at the same time as the beneficiaries provide their service. Missed payments or
prepayments to the external pension provider are accrued as liabilities or receivables. Liabilities
with a term of over 12 months are discounted.
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
167
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The actuarial measurement of pension provisions for post-employment benefits plans as part
of a defined benefit plan is effected in accordance with the projected unit credit method as
stipulated by IAS 19 (Employee Benefits) on the basis of actuarial opinions. Based on biometric
data, this method takes into account known pensions and pension entitlements at the reporting
date as well as expected increases in future wages and pensions. Where the employee benefit
obligations determined or the fair value of the plan assets increase or decrease between the
beginning and end of a financial year as a result of experience adjustments (for example, a
changed fluctuation rate) or changes in underlying actuarial assumptions, this will result in
actuarial gains and losses. These are recognised in other comprehensive income outside of profit
or loss. Effects of plan changes and curtailments are recognised fully under service costs
through profit or loss. The interest element of the addition to the provision contained in the
pension expense is presented as interest expenses as part of the financial result. Insofar as plan
assets exist, the amount of the pension obligation is generally the result of the difference
between the present value of defined benefit obligations and the fair value of the plan assets.
Provisions for obligations similar to pensions (such as anniversary allowances and death
benefits) are based on the present value of future payment obligations to the employee or his or
her surviving dependants less any associated assets measured at fair value. The amount of
provisions is determined on the basis of actuarial opinions in line with IAS 19. Actuarial gains and
losses are recognised in the period in which they are incurred.
Termination benefits comprise severance payments to employees. They are recognised as
liabilities through profit or loss when contractual or factual payment obligations towards the
employee are to be made in relation to the termination of the employment relationship. Such an
obligation exists when a formal plan for the early termination of the employment relationship is
available to which the company is bound. Benefits with terms of more than 12 months after the
reporting date are recognised at their present value.
The share bonuses granted under the share-based remuneration system are classified as
cash-settled share-based payments in accordance with IFRS 2 (Share-based Payment). For
these share-based payments provisions are set up on a pro rata basis, measured at the fair value
of the obligations entered into. The recognition of the provision follows a prorated approach
over the underlying vesting period and is recognised in profit or loss as personnel expenses. The
fair value is remeasured at each reporting date during the vesting period based on an option
pricing model. Provisions are adjusted accordingly in profit or loss.
(Other) provisions
In accordance with IAS 37 (Provisions, Contingent Liabilities and Contingent Assets), (other)
provisions are recognised if legal or constructive obligations to third parties exist that are based
on past business transactions or events and an outflow of financial resources that can be reliably
measured is probable. The provisions are stated at the anticipated settlement amount with
regard to all identifiable risks considered.
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
168
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Long-term provisions with a term of more than one year are discounted to the reporting date
using an interest rate for matching maturities reflecting current market expectations regarding
interest rate effects. Provisions with a term of less than one year are discounted accordingly, if
the interest rate effect is material. Claims for recourse are not netted with provisions, but
recognised separately as an asset if their realisation is considered virtually certain.
Provisions for onerous contracts are recognised if the unavoidable costs of meeting the
obligations under a contract exceed the expected economic benefits resulting from the contract.
Provisions for restructurings are recognised if a constructive obligation for restructuring has
been formalised by means of adopting a detailed restructuring plan and its communication vis-
à-vis to those employees affected as of the reporting date.
Recognition of warranty provisions that do not fall into the scope of IFRS 15 (Revenue from
Contracts with Customers) are based on past warranty claims and the sales of the current
financial year.
(Other) financial liabilities
In accordance with IFRS 9, financial liabilities are assigned to one of the following categories:
At fair value through profit or loss
Other financial liabilities
The initial recognition of financial liabilities and the subsequent measurement of financial
liabilities at fair value through profit or loss is applied in analogy to the corresponding guidance
as it is applied to financial assets.
All other financial liabilities are presented as such. They are measured at their amortised cost
using the effective interest method.
The fair value option according to IFRS 9 is not applied to financial liabilities at METRO.
The fair values provided for the financial liabilities in the notes have been determined on the
basis of the interest rates prevailing on the reporting date for the remaining terms and
redemption structures.
Financial liabilities from finance leases are generally measured at the present value of future
minimum lease payments.
A financial liability is derecognised only when it has expired or when the contractual
obligations have been redeemed or annulled or have expired.
Other non-financial liabilities
Other non-financial liabilities are carried at their repayment amount.
Transitorily deferred charges are presented as deferred income.
Trade liabilities
Trade liabilities are recognised at amortised cost.
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
169
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Other
Contingent liabilities
Contingent liabilities are, on the one hand, possible obligations arising from past events whose
existence must still be confirmed by the occurrence or non-occurrence of uncertain future
events that are not entirely under METRO’s control. On the other hand, contingent liabilities
represent current obligations arising from past events for which, however, an outflow of
economic resources is not considered probable or whose amount cannot be determined with
sufficient reliability. Such liabilities are not recognised in the balance sheet but disclosed in the
notes. Contingent liabilities are determined on the basis of the principles applying to the
measurement of provisions.
Accounting for derivative financial instruments and hedge accounting
Derivative financial instruments are exclusively utilised to reduce risks. They are used in
accordance with the respective group guideline.
All derivative financial instruments that are not designated as part of a hedging relationship
are measured at fair value in accordance with IFRS 9 - or in the previous financial year in
accordance with IAS 39 - and reported under other financial assets or other financial liabilities.
Derivative financial instruments are measured on the basis of interbank terms and conditions,
possibly including the credit margin or stock exchange prices applicable to METRO - in this
respect the average rate on the closing date is used. Where no stock exchange prices can be
used, the fair value is determined by means of accepted financial models.
In case of effective hedge accounting transactions in accordance with IAS 39, the effective
portion of the change in the derivative used as hedging instrument is recognised in other
comprehensive income as part of the cash flow hedges. A transfer to the income statement is –in
general – only processed when the underlying transaction is realised. The ineffective portion of
the change in the value of the hedging instrument is immediately reported in profit or loss.
Supplier compensation
Depending on the underlying circumstances, considerations from suppliers are recognised as a
reduction in the cost of purchase, a reimbursement of own costs or a payment for services
rendered. Considerations from suppliers are deferred at the reporting date insofar as it has been
contractually agreed and is likely to be realised. For supplier remunerations of METRO’s costs
linked to calendar year targets, the supplier’s compensation included in the financial statement
is based on appropriate extrapolations.
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
170
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Estimates and assumptions, discretionary judgements
Due to the Covid-19 pandemic, particular challenges arose in with regards to estimates and
assumptions. The operational business was largely unaffected by Covid-19 until the end of
February 2020. At the beginning of the crisis in Europe triggered by the pandemic, METRO was
initially able to more than compensate for the loss of sales and earnings of some customer
groups (particularly hospitality industry customers) through positive sales and earnings effects
in other customer groups (particularly through inventory purchases by SCO customers). Since
mid-March 2020, however, the overall development in terms of sales and earnings has been
clearly negative due to the pandemic and the regulatory measures imposed in many countries.
Public life in many countries where METRO operates has been severely restricted as a result of
these measures – in particular, the measures had a significant negative impact on some of our
customer groups (especially hospitality industry customers) and, consequently also on our
business. The situation did not stabilise until the 2nd half of the financial year – and even then
just at a low level. At this stage, it is not possible to make a reliable estimate of how long the
pandemic and the associated restrictions on public life will last and how long it will take to
return to normal.
Estimates and assumptions
The preparation of these consolidated financial statements was based on estimates and
assumptions, taking into account the changes in the business environment described above,
which affected the disclosure and amount of assets and liabilities, income and expenses and
contingent liabilities. Estimates and underlying assumptions with major effects were particularly
made in connection with the Covid-19 pandemic with respect to the following circumstances:
Ad hoc impairment testing of assets with and without a definite useful life, including goodwill,
and a sensitivity analysis. Due to unstable political developments and regulatory restrictions
as a result of the Covid-19 pandemic, the ad hoc impairment test of goodwill for the Classic
Fine Foods Group in particular resulted in a shortfall, which was recognised as part of an
impairment. Otherwise, potential short-term impairments to earnings have no impact on the
existing carrying amounts of goodwill.
Recoverability of receivables – in particular trade receivables and receivables due from
suppliers. Increased specific bad debt allowances were provided for when measuring
receivables, particularly in units with longer payment terms and a high exposure to the
HoReCa sector. In addition, the future element in the general risk provision was increased in
accordance with IFRS 9.
Measurement of inventories, particularly with regard to write-downs to lower net realisable
values.
Calculation of provisions for performance-based remuneration components. Provisions for
performance-based remuneration components were also calculated on the basis of corporate
planning using current market parameters such as the performance of share prices and
benchmark indices.
In addition, information on estimates and underlying assumptions with significant effects on
these consolidated financial statements relates to the following circumstances or is included in
the following notes:
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
171
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Uniform group-wide determination of expected useful lives for assets with a definite useful
life (no. 15 – depreciation/amortisation/impairment losses
page 181 , no. 20 – other
intangible assets
page 188 and no. 21 – property, plant and equipment
page 189 )
Ad hoc impairment testing of assets with a definite useful life (no. 15 – depreciation/
amortisation/impairment losses
page 181 , no. 20 – other intangible assets
page 188 and
no. 21 – property, plant and equipment
page 189 )
Recoverability of receivables due from suppliers with respect to considerations from suppliers
(no. 24 – other financial and other non-financial assets
page 196 )
Recognition of consideration from suppliers on an accrual basis and their presentation in the
income statement (no. 24 – other financial and other non-financial assets
page 196 )
Ability to realise future deferred tax assets – particularly from tax loss carry-forwards (no. 25
– deferred tax assets/deferred tax liabilities
page 197 )
Measurement of inventories; inventories were examined thoroughly to determine whether
fresh goods could still be sold during existing shutdown phases, and additional risk provisions
were made where necessary (no. 26 – inventories
page 200 )
Determination of provisions for post-employment benefits plans (no. 32 – provisions for post-
employment benefits plans and similar obligations
page 210 )
Determination of other provisions and other liabilities – for example, for performance
obligations, restructuring, warranties, taxes and risks emerging from legal proceedings and
litigation as well as risks from completed transactions (no. 33 – other provisions (non-
current)/provisions (current)
page 218 , no. 37 – other financial and other non-financial
liabilities
page 224 )
Determination of lease terms, taking into account relevant facts and circumstances relating to
economic incentives affecting the likelihood of tenants exercising renewal options or not
exercising termination options as well as determination of the marginal interest rate (no. 21 –
property, plant and equipment
page 189 )
Although great care has been taken in making these estimates and assumptions, actual
measurements may deviate from them in individual cases and especially considering
Covid-19-related uncertainties. The estimates and assumptions used in the consolidated financial
statements are regularly reviewed. Changes are taken into account at the time new information
becomes available.
Judgements
Information on the key judgements that materially affected the amounts reported in these
consolidated financial statements relates to the following circumstances or note disclosures:
Determination whether METRO is the principal or agent in sales transactions (no. 1 – revenue
page 174 )
Determination of the group of investments accounted for at equity by assessing the material
influence
N O T E S
N O T E S  T O  T H E  G R O U P  A C C O U N T I N G  P R I N C I P L E S
A N D  M E T H O D S
172
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

CAPITAL MANAGEMENT
The aim of the capital management strategy of METRO is to secure the company’s business
operations to continue, to enhance its company value, to create solid capital resources to
finance future growth and to provide for attractive dividend payments and capital service.
The capital management strategy of METRO has remained unchanged compared with the
previous year.
Equity, liabilities and net debt in the consolidated financial statements
The total equity before non-controlling interests amounts to €2,053 million (30/9/2019:
€2,314 million), while liabilities amount to €11,131 million (30/9/2019: €15,485 million). Net debt
decreased by €1.6 billion and amounts to €3.8 billion (30/9/2019: €5.4 billion).
€ million
30/9/20191
30/9/2020
Equity before non-controlling interests
2,314
2,053
Liabilities
15,485
11,131
Net debt
5,419
3,771
Financial liabilities (incl. liabilities from leases)
5,930
5,314
Cash and cash equivalents
500
1,525
Short-term financial investments2
11
19
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
2 Shown in the balance sheet under other financial assets (current).
Local capital requirements
The capital management strategy of METRO consistently aims to ensure that the group
companies’ capital resources meet the local requirements. During financial year 2019/20, all
external capital requirements were met. This includes, for example, adherence to a defined level
of indebtedness and a fixed equity ratio.
N O T E S
C A P I T A L  M A N A G E M E N T
173
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

NOTES TO THE INCOME STATEMENT
1. Sales revenues
Revenue is recognised in accordance with IFRS 15 (Revenue from Contracts with Customers).
Revenue is allocated to the following categories:
€ million
2018/19
2019/20
Store-based and other business
22,487
21,695
METRO Germany
4,075
4,166
METRO Western Europe (excl. Germany)
8,885
8,032
METRO Russia
2,406
2,412
METRO Eastern Europe (excl. Russia)
5,986
6,047
METRO Asia
1,097
1,023
Others
38
14
Delivery sales
4,595
3,937
METRO Germany
660
533
METRO Western Europe (excl. Germany)
1,867
1,570
METRO Russia
257
232
METRO Eastern Europe (excl. Russia)
1,205
1,078
METRO Asia
599
516
Others
7
7
Total sales
27,082
25,632
METRO Germany
4,735
4,699
METRO Western Europe (excl. Germany)
10,752
9,603
METRO Russia
2,662
2,644
METRO Eastern Europe (excl. Russia)
7,191
7,125
METRO Asia
1,696
1,539
Others
46
22
2. Other operating income
€ million
2018/191
2019/20
Income from logistics services
257
281
Services
250
244
Rents incl. reimbursements of subsidiary rental costs
204
169
Services rendered to suppliers
103
69
Gains from the disposal of fixed assets and gains from the reversal of impairment
losses
366
13
Miscellaneous
195
173
1,376
948
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
N O T E S
N O T E S  T O  T H E  I N C O M E  S TA T E M E N T
174
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The income from logistics services provided by METRO LOGISTICS is offset by expenses from
logistics services, which are reported under other operating expenses.
Services include income from advertising services provided by METRO ADVERTISING in the
amount of €157 million (2018/19: €159 million); corresponding expenses from advertising
services are shown under selling expenses.
Besides general disposal of long-term assets, the gains from the disposal of fixed assets and
gains from the reversal of impairment losses include €3 million of income from the disposal of
real estate (2018/19: €355 million) and €1 million of income from reversal of impairment losses
(2018/19: €8 million).
The other operating income includes cost allocations and cost shares, income from the use of
the METRO brand as well as a great number of insignificant individual items.
3. Selling expenses
€ million
2018/191
2019/20
Personnel expenses
2,001
1,931
Cost of material
1,954
1,917
3,955
3,849
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
In terms of selling expenses, personnel expenses decreased compared to the previous year,
mainly due to lower wages and salaries and variable payments.
The decline in costs of material compared to the previous year resulted in particular from
reduced consultancy costs and lower leasing, energy, travel and transport costs. It was offset by
the increased depreciation of usufructuary rights.
4. General administrative expenses
€ million
2018/191
2019/20
Personnel expenses
424
469
Cost of material
387
362
811
831
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
The increase in personnel expenses within general administrative expenses is mainly due to
higher restructuring expenses for restructuring measures.
The decline in cost of material is primarily related to lower consultancy costs and travel
expenses. It is offset by the increased amortisation of intangible assets.
N O T E S
N O T E S  T O  T H E  I N C O M E  S TA T E M E N T
175
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

5. Other operating expenses
€ million
2018/19
2019/20
Expenses from logistics services
254
266
Impairment losses on goodwill
3
27
Losses from the disposal of fixed assets
6
4
Miscellaneous
17
24
279
321
The expenses from logistics services provided by METRO LOGISTICS are offset by income from
logistics services, which are reported under other operating income.
6. Earnings from impairment of financial assets
The result from impairment losses on financial assets amounts to €64 million (2018/19:
€14 million) and includes impairment losses on receivables from contracts with customers
amounting to €51 million (2018/19: €9 million). This includes increased expenses from additions
to impairment losses due to Covid-19, income from the reversal of impairment losses, and
income from the receipt of cash and cash equivalents for financial assets that have already been
derecognised.
7. Earnings share of operating/non-operating companies recognised at equity
The earnings of operating companies recognised at equity that have an operational relation to
the ordinary business activities are shown in the income statement in the EBIT item. It amounts
to €14 million (2018/19: €24 million). Of this, €6 million (2018/19: €15 million) is attributable to
the METRO Western Europe (excl. Germany) segment and €7 million (2018/19: €9 million) to the
Others segment as well as €1 million (2018/19: €1 million) to the METRO Asia segment.
8. Other investment result
Other investment results in the amount of €3 million (2018/19: €−1 million) include the impact of
the fair value measurement of investments in the amount of €2 million (2018/19: €−1 million).
Dividends from investments amounted to €0 million (2018/19: €0 million).
N O T E S
N O T E S  T O  T H E  I N C O M E  S TA T E M E N T
176
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

9. Net interest income/interest expenses
The interest result can be broken down as follows:
€ million
2018/191
2019/20
Interest income
45
31
thereof from leases
(16)
(15)
thereof from post-employment benefits plans
(7)
(5)
thereof from financial instruments of the measurement categories according to
IFRS 9
(12)
(8)
Interest expenses
−285
−252
thereof from leases
(−188)
(−177)
thereof from post-employment benefits plans
(−15)
(−11)
thereof from financial instruments of the measurement categories according to
IFRS 9
(−69)
(−56)
Interest result
−241
−220
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
Interest income and interest expenses from financial instruments are assigned to the
measurement categories according to IFRS 9 on the basis of the underlying transactions.
The interest expenses included here (of the measurement categories in accordance with IFRS
9) primarily include interest expenses for issued bonds (including the Commercial Paper
Programme) of €31 million (2018/19: €41 million) and for liabilities to banks of €17 million (2018/
19: €19 million).
The decline in interest expenses was primarily the result of more favourable refinancing terms
and lower interest expenses from leases.
For more information about possible effects from currency risks, see no. 44 – management of financial risks
page
242 .
10. Other financial result
The other financial income and expenses from financial instruments are assigned to
measurement categories according to IFRS 9 on the basis of the underlying transactions.
Besides income and expenses from the measurement of financial instruments (except derivatives
in hedging relationships in accordance with IAS 39), this also includes the measurement of
foreign currency positions according to IAS 21.
N O T E S
N O T E S  T O  T H E  I N C O M E  S TA T E M E N T
177
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

€ million
2018/191
2019/20
Other financial income
174
320
thereof currency effects
(127)
(255)
thereof hedging transactions
(39)
(49)
Other financial expenses
−162
−392
thereof currency effects
(−121)
(−325)
thereof hedging transactions
(−18)
(−35)
Other financial result
12
−72
thereof from financial instruments of the measurement categories according to
IFRS 9
(17)
(16)
thereof cash flow hedges:
ineffectiveness
(−1)
(−2)
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
The total comprehensive income from currency effects and measurement results from hedging
transactions and hedging relationships totalled €−57 million (2018/19: €28 million). In addition,
the other financial result reflects €−13 million (2018/19: €−5 million) in currency effects resulting
from the translation of the financial statements of foreign subsidiaries that are recognised
through profit or loss in the year the subsidiary is deconsolidated or in the year business
activities are discontinued. In addition, impairment losses on financial assets amounting to
€−2 million (2018/19: €−2 million) were recognised in the reporting period.
For more information about possible effects from currency risks, see no. 44 – management of financial risks
page
242 .
11. Net results according to measurement categories
The key effects of income from financial instruments are as follows:
2018/19
€ million
Invest-
ments
Interest
Fair
value
measure-
ments
Currency
trans-
lation
Disposals
Impair-
ments
Other
Net
result
Financial assets measured at
amortised cost, incl. cash and
cash equivalents
0
11
0
19
0
−16
0
13
Financial assets at fair value
through profit or loss
−1
0
24
0
0
0
0
23
Equity instruments measured
outside of profit or loss
0
0
0
0
0
0
0
0
Financial liabilities measured at
amortised cost
0
−69
4
−23
3
0
−4
−89
−1
−57
28
−5
4
−16
−4
−52
N O T E S
N O T E S  T O  T H E  I N C O M E  S TA T E M E N T
178
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

2019/20
€ million
Invest-
ments
Interest
Fair
value
measure-
ments
Currency
trans-
lation
Disposals
Impair-
ments
Other
Net
result
Financial assets measured at
amortised cost, incl. cash and
cash equivalents
0
8
0
5
0
−58
0
−46
Financial assets at fair value
through profit or loss
3
0
15
0
0
0
0
18
Equity instruments measured
outside of profit or loss
0
0
0
0
0
0
0
0
Financial liabilities measured at
amortised cost
0
−56
10
−8
4
0
−4
−53
3
−48
25
−3
4
−58
−5
−82
The income and expenses from financial instruments are assigned to measurement categories
according to IFRS 9 on the basis of the underlying transactions.
Investment income and income effects from the disposal of investments are included in other
investment result. Interest income and expenses are part of the interest result. Fair value
measurements and effects from other financial expenses and currency translation are included in
the other financial result. Income effects from the disposal of other financial liabilities are
included in earnings before interest and taxes (EBIT). The expenses from impairments are
included in the result from impairments on financial assets.
Additional information on the risks arising from impairments can be found in no. 44 – management of financial risks
page 242 .
Remaining financial income and expenses included in the other financial result primarily concern
bank commissions and similar expenses that are incurred within the context of financial assets
and liabilities.
12. Income taxes
Income taxes include the taxes on income paid or owed in the individual countries as well as
deferred taxes.
€ million
2018/191
2019/20
Deferred tax expense/income (+/−)
86
−25
thereof from temporary differences
(18)
(−22)
thereof from loss and interest carry-forwards
(68)
(−3)
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
N O T E S
N O T E S  T O  T H E  I N C O M E  S TA T E M E N T
179
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

€ million
2018/191
2019/20
Actual taxes
215
133
thereof Germany
(9)
(10)
thereof international
(206)
(123)
thereof tax expenses/income of current period
(221)
(143)
thereof tax expenses/income of previous periods
(−6)
(−10)
Deferred taxes
86
−25
thereof Germany
(105)
(24)
thereof international
(−19)
(−49)
301
108
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
The income tax rate of the German companies of METRO consists of a corporate income tax of
15.00% plus a 5.50% solidarity surcharge on corporate income tax as well as the trade tax of
14.70% given an average assessment rate of 420.00%. All in all, this results in an aggregate tax
rate of 30.53%. The tax rates are unchanged from the previous year. The income tax rates
applied to foreign companies are based on the respective laws and regulations of the individual
countries and vary within a range of 0.00% (2018/19: 0.00%) and 34.94% (2018/19: 34.94%).
At €108 million (2018/19: €301 million), recognised income tax expenses are €−193 million
below previous year’s level. The decline in current income taxes amounting to €82 million (2018/
19: increase by €42 million) is mainly due to the lower consolidated input tax earnings compared
to the previous year. The decrease in deferred tax expenses of €111 million (2018/19: increase by
€40 million) is due to the write-downs of deferred taxes on domestic loss carry-forwards
recognised in the previous year.
Applying the German group tax rate to the reported pre-tax result would result in an income
tax expense of €−10 million (2018/19: €222 million). The deviation of €118 million (2018/19:
€79 million) from the reported tax expense of €108 million (2018/19: €301 million) can be
reconciled as follows:
€ million
2018/191
2019/20
EBT (earnings before taxes)
728
−32
Expected income tax expenses (30.53%)
222
−10
Effects of differing national tax rates
−65
−2
Tax expenses and income relating to other periods
−6
−10
Non-deductible business expenses for tax purposes
51
52
Effects of not recognised or impaired deferred taxes
119
69
Additions and reductions for local taxes
13
15
Tax holidays
−39
−3
Other deviations
5
−2
Income tax expenses according to the income statement
301
108
Group tax rate
41.4%
−338.3%
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
N O T E S
N O T E S  T O  T H E  I N C O M E  S TA T E M E N T
180
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The item ‘effects of differing national tax rates’ includes a deferred tax expense of €3 million
(2018/19: deferred tax income of €7 million) from tax rate changes.
Tax holidays for the previous year include effects from real estate transactions in the amount
of €30 million.
13. Profit or loss for the period attributable to non-controlling interests
Of profit or loss for the period attributable to non-controlling interests, profit shares accounted
for €13 million (2018/19: €13 million) and loss shares for €−2 million (2018/19: €−2 million).
14. Earnings per share
2018/191
2019/20
Weighted number of no-par-value shares
363,097,253
363,097,253
Profit or loss for the period attributable to the shareholders of METRO AG (€ million)
322
460
Earnings per share in € (basic = diluted)
0.89
1.27
from continuing operations
(1.16)
(−0.40)
from discontinued operations
(−0.27)
(1.67)
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
Earnings per share are determined by dividing profit or loss for the period attributable to the
shareholders of METRO AG by the weighted number of no-par-value shares. In the calculation of
earnings per ordinary share, an additional dividend for preference shares is generally deducted
from profit or loss for the period attributable to the shareholders of METRO AG. There was no
dilution in the reporting period or the year before from so-called potential shares.
Earnings per preference share correspond to earnings per share.
15. Depreciation/amortisation/impairment losses
Depreciation/amortisation/impairment losses of €858 million (2018/19: €784 million) include
impairment losses totalling €55 million (2018/19: €21 million).
The impairment is mainly losses attributable to the METRO Asia segment (€26 million), in
particular the impairment of goodwill at Classic Fine Foods, €14 million to the Others segment,
€6 million to the METRO Germany segment and €5 million to the METRO Russia segment.
The attribution of depreciation/amortisation/impairment losses in the income statement and
the affected asset categories is as follows:
N O T E S
N O T E S  T O  T H E  I N C O M E  S TA T E M E N T
181
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

2018/19
€ million
Goodwill
Other in-
tangible
assets
Property,
plant and
equip-
ment2
Usu-
fructuary
rights2
Invest-
ment
proper-
ties2
Financial
assets1
Total2
Cost of sales
0
3
22
46
0
0
70
thereof depreciation/amortisation
(0)
(3)
(22)
(46)
(0)
(0)
(70)
thereof impairment
(0)
(0)
(0)
(0)
(0)
(0)
(0)
Selling expenses
0
30
321
223
14
0
588
thereof depreciation/amortisation
(0)
(30)
(315)
(222)
(14)
(0)
(580)
thereof impairment
(0)
(0)
(6)
(1)
(0)
(0)
(8)
General administrative expenses
0
81
19
21
1
0
121
thereof depreciation/amortisation
(0)
(73)
(19)
(21)
(1)
(0)
(113)
thereof impairment
(0)
(8)
(0)
(0)
(0)
(0)
(8)
Other operating expenses
3
0
0
0
0
0
3
thereof impairment
(3)
(0)
(0)
(0)
(0)
(0)
(3)
Scheduled impairment losses and
impairment before impairment of
financial investments
3
113
362
290
15
0
782
Net financial result
0
0
0
0
0
2
2
thereof impairment
(0)
(0)
(0)
(0)
(0)
(2)
(2)
Scheduled depreciation/
amortisation/impairment losses
3
113
362
290
15
2
784
thereof depreciation/amortisation
(0)
(105)
(356)
(288)
(14)
(0)
(763)
thereof impairment
(3)
(8)
(7)
(2)
(0)
(2)
(21)
1 Also comprise investments accounted for using the equity method.
2 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
N O T E S
N O T E S  T O  T H E  I N C O M E  S TA T E M E N T
182
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

2019/20
€ million
Goodwill
Other in-
tangible
assets
Property,
plant and
equip-
ment
Usu-
fructuary
rights
Invest-
ment
proper-
ties
Financial
assets1
Total
Cost of sales
0
2
24
50
0
0
77
thereof depreciation/amortisation
(0)
(2)
(24)
(50)
(0)
(0)
(77)
thereof impairment
(0)
(0)
(0)
(0)
(0)
(0)
(0)
Selling expenses
0
34
316
244
24
0
618
thereof depreciation/amortisation
(0)
(34)
(305)
(240)
(17)
(0)
(595)
thereof impairment
(0)
(0)
(11)
(4)
(7)
(0)
(22)
General administrative expenses
0
96
18
21
1
0
135
thereof depreciation/amortisation
(0)
(92)
(18)
(21)
(1)
(0)
(131)
thereof impairment
(0)
(4)
(0)
(0)
(0)
(0)
(4)
Other operating expenses
27
0
0
0
0
0
27
thereof impairment
(27)
(0)
(0)
(0)
(0)
(0)
(27)
Scheduled impairment losses and
impairment before impairment of
financial investments
27
132
358
315
25
0
857
Net financial result
0
0
0
0
0
1
1
thereof impairment
(0)
(0)
(0)
(0)
(0)
(1)
(1)
Scheduled depreciation/
amortisation/impairment losses
27
132
358
315
25
1
858
thereof depreciation/amortisation
(0)
(128)
(346)
(311)
(18)
(0)
(803)
thereof impairment
(27)
(4)
(11)
(4)
(7)
(1)
(55)
1 Also comprise investments accounted for using the equity method.
In accordance with IFRS 5, impairment losses of METRO China in the previous year were not
included in the profit or loss for the period from continuing operations and were thus not
included in the tables above. In contrast, these impairment losses are included in the movement
schedules on the development of financial assets up to the point of reclassification on
30 September 2019; for that reason, the amounts stated there may differ from those stated
above.
16. Cost of materials
The cost of sales includes the following cost of materials:
€ million
2018/19
2019/20
Cost of raw materials, supplies and goods purchased
21,768
20,572
Cost of services purchased
16
18
21,784
20,590
N O T E S
N O T E S  T O  T H E  I N C O M E  S TA T E M E N T
183
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

17. Personnel expenses
Personnel expenses can be broken down as follows:
€ million
2018/19
2019/20
Wages and salaries
2,264
2,256
Social security expenses, expenses for post-employment benefits
and related employee benefits
552
537
thereof for post-employment benefits
(41)
(37)
2,816
2,793
Wages and salaries include expenses relating to restructuring measures and severance payments
of €84 million (2018/19: €23 million). The variable remuneration dropped from €81 million in
financial year 2018/19 to €66 million in financial year 2019/20. Wages and salaries also include
expenses for long-term remuneration components totalling €13 million (2018/19: €7 million).
Annual average number of group employees in the continuing segment:
Number of employees by headcount
2018/19
2019/20
Blue collar/white collar
99,843
95,906
Apprentices/trainees
1,811
1,733
101,654
97,639
This includes an absolute number of 16,160 (2018/19: 16,902) part-time employees. The number
of employees working outside of Germany stood at 78,199 (2018/19: 81,607). This includes 77,341
blue- and white-collar employees (2018/19: 80,660). In addition, 858 trainees were employed
abroad (2018/19: 947).
The personnel figures for discontinued operations are explained in no. 43 – discontinued operations
page 236 .
18. Other taxes
The other taxes (for example property tax, motor vehicle tax, excise tax and transaction tax)
have the following effects on the income statement:
€ million
2018/19
2019/20
Other taxes
79
69
thereof from cost of sales
(1)
(1)
thereof from selling expenses
(62)
(59)
thereof from general administrative expenses
(16)
(9)
N O T E S
N O T E S  T O  T H E  I N C O M E  S TA T E M E N T
184
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

NOTES TO THE BALANCE SHEET
19. Goodwill
Goodwill amounts to €731 million (30/9/2019: €785 million).
At the closing date, the breakdown of goodwill among the major cash-generating units was
as shown below:
30/9/2019
30/9/2020
WACC
WACC
€ million
%
€ million
%
METRO Cash & Carry France
293
5.0
293
4.6
METRO Cash & Carry Germany
94
4.7
94
4.5
METRO Cash & Carry Poland
57
5.6
54
4.9
METRO Cash & Carry Spain/Portugal
54
5.7
54
5.1
METRO Cash & Carry Romania
39
6.2
38
6.7
METRO Cash & Carry Italy
38
6.7
38
6.3
Pro à Pro
34
5.0
35
4.6
METRO Cash & Carry Russia
42
6.6
32
6.3
METRO Cash & Carry Czech Republic
24
5.3
23
4.8
Classic Fine Foods
25
5.0
0
5.0
Others
85
69
785
731
In accordance with IFRS 3 in conjunction with IAS 36, goodwill is tested for impairment once a
year. This is carried out at the level of a group of cash-generating units. Specifically, this is
usually the organisational unit per country.
In the impairment test, the cumulative carrying amount of the group of cash-generating units
is compared with the recoverable amount. The recoverable amount is defined as the fair value
less costs to sell, which is calculated from discounted future cash flows and the level 3 input
parameters of the fair value hierarchy.
The description of the fair value hierarchies is included in no. 40 – carrying amounts and fair values according to
measurement categories
page 227 .
Expected future cash flows are based on a qualified planning process under consideration of
intra-group experience as well as macroeconomic data collected by third-party sources. The
detailed planning period generally spans 3 years, with various scenarios being derived with
regard to the effects of the Covid-19 pandemic and analysed with regard to their
appropriateness for the impairment test. The increased uncertainty about future developments
was taken into account by adjusting the sales and earnings planning to properly reflect the
crisis. The detailed planning period can generally be extended by up to 2 further planning years
for units undergoing a transformation process, but no use was made of this option in financial
year 2019/20. Following the detailed planning period, a growth rate of 1% is assumed, as in the
previous year. The capitalisation rate as the weighted average cost of capital (WACC) is
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
185
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

determined using the capital asset pricing model. In the process, an individual peer group is
assumed for all groups of cash-generating units operating in the same business segment. In
addition, the capitalisation rates are determined on the basis of an assumed basic interest rate
of 0.0% (30/9/2019: 0.6%) and a market risk premium of 7.8% (30/9/2019: 7.0%) in Germany as
well as a beta factor of 0.88 (30/9/2019: 0.97). Country-specific risk premiums based on the
respective country rating are applied to the equity cost of capital and to the borrowing costs.
The capitalisation rates after taxes determined individually for each group of cash-generating
units range from 4.5% to 10.7% (30/9/2019: 4.7% to 10.1%).
The mandatory annual impairment test carried out by METRO as of 30 June 2020 resulted in
the following assumptions regarding the development of sales, EBIT and the EBIT margin
targeted for valuation purposes until the end of the detailed planning period. In view of the
limited comparability of financial year 2019/20 in many countries, financial year 2018/19 was
used as a basis for comparison here. The EBIT margin hereby reflects the ratio of EBIT to net
sales.
Sales
EBIT
EBIT margin
Detailed planning
period (years)
METRO Cash & Carry France
Slight growth
Noticeable
decline1
Noticeable
decline1
3
METRO Cash & Carry Germany
Moderate growth
Slight growth
Slight growth
3
METRO Cash & Carry Poland
Moderate decline
Stable
development
Stable
development
3
METRO Cash & Carry Spain/Portugal
Moderate decline
Noticeable
decline1
Moderate decline
3
Pro à Pro
Slight growth
Moderate growth
Stable
development
3
1 The recovery from the Covid 19 pandemic is expected to continue until after the end of the detailed planning period.
Impairment losses of €27 million were recognised in the financial year; they are mainly
attributable to Classic Fine Foods. As of 30 June 2020, the mandatory annual impairment test
also confirmed the recoverability of all capitalised goodwill.
In addition to the impairment test, 3 sensitivity analyses were conducted for each group of
cash-generating units. In the first sensitivity analysis, the interest rate for each group was raised
by 10.0%. The second sensitivity analysis was based on the assumption of a 1 percentage point
lower growth rate. In the third sensitivity analysis, a lump sum discount of 10.0% was applied to
the assumed perpetual EBIT. These changes did not result in significant impairment for any of
the groups of cash-generating units with the exception of METRO Cash & Carry Germany and
Pro à Pro.
In the goodwill impairment test at METRO Cash & Carry Germany, the fair value less costs to
sell exceeded the carrying amount by €18 million. If the WACC were to increase to 4.8%, the fair
value less costs to sell would correspond to the carrying amount.
If the WACC were to increase by 4.7% for Pro à Pro, the fair value less costs to sell would
correspond to the carrying amount.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
186
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

€ million
Goodwill
Acquisition or production costs
As of 1/10/2018
840
Currency translation
7
Additions to consolidation group
0
Additions
1
Disposals
0
Reclassifications in accordance with IFRS 5
−19
Transfers
0
As of 30/9/2019 and 1/10/2019
829
Currency translation
−34
Additions to consolidation group
0
Additions
0
Disposals
0
Reclassifications in accordance with IFRS 5
0
Transfers
0
As of 30/9/2020
795
Depreciation
As of 1/10/2018
44
Currency translation
−2
Additions, scheduled
0
Additions, impairment
3
Disposals
0
Reclassifications in accordance with IFRS 5
0
Reversals of impairment losses
0
Transfers
0
As of 30/9/2019 and 1/10/2019
44
Currency translation
−7
Additions, scheduled
0
Additions, impairment
27
Disposals
0
Reclassifications in accordance with IFRS 5
0
Reversals of impairment losses
0
Transfers
0
As of 30/9/2020
64
Carrying amount as of 1/10/2018
797
Carrying amount as of 30/9/2019
785
Carrying amount as of 30/9/2020
731
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
187
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

20. Other intangible assets
€ million
Intangible assets
without goodwill
(thereof internally generated
intangible assets)
Acquisition or production costs
As of 1/10/2018
1,801
(977)
Currency translation
10
(1)
Additions to consolidation group
0
(0)
Additions
170
(137)
Disposals
−11
(−5)
Reclassifications in accordance with IFRS 5
−10
(0)
Transfers
7
(−3)
As of 30/9/2019 and 1/10/2019
1,967
(1,106)
Currency translation
−20
(−2)
Additions to consolidation group
0
(0)
Additions
154
(122)
Disposals
−35
(−15)
Reclassifications in accordance with IFRS 5
0
(0)
Transfers
4
(18)
As of 30/9/2020
2,069
(1,229)
Depreciation
As of 1/10/2018
1,302
(817)
Currency translation
3
(1)
Additions, scheduled
106
(46)
Additions, impairment
8
(6)
Disposals
−11
(−5)
Reclassifications in accordance with IFRS 5
−6
(0)
Reversals of impairment losses
0
(0)
Transfers
2
(0)
As of 30/9/2019 and 1/10/2019
1,405
(864)
Currency translation
−10
(−2)
Additions, scheduled
128
(69)
Additions, impairment
4
(4)
Disposals
−34
(−15)
Reclassifications in accordance with IFRS 5
0
(0)
Reversals of impairment losses
0
(0)
Transfers
0
(13)
As of 30/9/2020
1,493
(933)
Carrying amount as of 1/10/2018
499
(160)
Carrying amount as of 30/9/2019
562
(242)
Carrying amount as of 30/9/2020
576
(296)
The other intangible assets have both finite and indefinite expected useful lives. Intangible
assets with a finite expected useful life are subject to scheduled depreciation/amortisation.
Intangible assets with an indefinite expected useful life are subjected to annual impairment tests.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
188
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Assets with an indefinite useful life relate to acquired brand rights. Their carrying amount is
€95 million (30/9/2019: €99 million). The expected useful life of the trademark rights is
indeterminable, because METRO can use these rights without restrictions and abandoning them
is not envisaged in the future. The carrying amounts of the brands are reviewed annually for
units to which goodwill is not simultaneously allocated in line with the procedure for the
respective purchase price allocations using the licence price analogy method. This involves
applying licence rates of between 0.3% and 1% and WACC of between 4.5% and 5%. The
mandatory annual impairment test confirmed the recoverability of the carrying amounts. In
addition, sensitivity analyses were carried out, assuming a 10% reduction in the sustainable
expected sales of the respective units or a 10% increase in WACC. Even in these scenarios, no
impairment would have resulted.
Additions in the amount of €154 million (2018/19: €170 million) concern internally generated
software at €122 million (2018/19: €137 million), software purchased from third parties and still in
development at €19 million (2018/19: €19 million), and concessions, rights and licences at
€13 million (2018/19: €13 million).
Research and development expenses recognised in expenses essentially concern internally
generated software and amounted to €30 million (2018/19: €28 million).
As in the previous year, there are no material restrictions on title or right to dispose of
intangible assets. Purchasing obligations for intangible assets amounting to €1 million (30/9/
2019: €1 million) were recorded.
21. Property, plant and equipment
Property, plant and equipment includes own tangible assets and rights of use for leased
property, plant and equipment.
€ million
30/9/20191
30/9/2020
Property, plant and equipment
4,260
3,728
Usufructuary rights
2,374
2,084
6,635
5,811
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
The inventories and developments are each presented and explained separately below. Previous
year’s figures have been adjusted due to the full retrospective application of IFRS 16 (Leases).
The development of own tangible assets is shown in the following table.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
189
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

€ million
Land and
buildings
Other plant,
business and
office equip-
ment
Assets under
construction
Total
Acquisition or production costs
As of 1/10/2018
6,599
3,189
158
9,946
Currency translation
156
46
3
205
Additions to consolidation group
0
0
0
0
Additions
54
80
161
295
Disposals
−125
−74
−5
−204
Reclassifications in accordance with IFRS 5
−794
−249
−15
−1,058
Transfers
61
100
−186
−24
As of 30/9/2019 and 1/10/2019
5,951
3,093
116
9,160
Currency translation
−457
−136
−7
−600
Additions to consolidation group
0
0
0
0
Additions
24
66
109
198
Disposals
−26
−104
−13
−142
Reclassifications in accordance with IFRS 5
−1
0
0
−1
Transfers
41
72
−109
4
As of 30/9/2020
5,531
2,991
96
8,618
Depreciation
As of 1/10/2018
2,945
2,155
10
5,110
Currency translation
40
26
0
67
Additions, scheduled
202
200
0
401
Additions, impairment
6
1
0
7
Disposals
−72
−67
0
−139
Reclassifications in accordance with IFRS 5
−385
−138
0
−523
Reversals of impairment losses
−4
−1
0
−5
Transfers
−21
4
0
−18
As of 30/9/2019 and 1/10/2019
2,711
2,179
10
4,900
Currency translation
−163
−87
−1
−252
Additions, scheduled
165
181
0
346
Additions, impairment
7
3
1
11
Disposals
−22
−100
0
−122
Reclassifications in accordance with IFRS 5
−1
0
0
−1
Reversals of impairment losses
0
0
0
−1
Transfers
7
1
0
8
As of 30/9/2020
2,703
2,177
10
4,890
Carrying amount as of 1/10/2018
3,655
1,034
148
4,836
Carrying amount as of 30/9/2019
3,240
914
106
4,260
Carrying amount as of 30/9/2020
2,828
814
86
3,728
Of the €533 million decline in property, plant and equipment, €349 million was due to negative
currency effects, particularly in Turkey and Russia. Investments were more than offset by
ongoing depreciation.
In accordance with IFRS 5, the scheduled depreciation of METRO China in the previous year
in the amount of €44 million is not included in the current profit or loss for the period from
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
190
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

continuing operations. These impairment losses are included in the movement schedules on the
development of financial assets up to the point of reclassification on 30 September 2019;
consequently, the amounts stated there may differ from the notes on depreciation.
Restrictions on titles in the form of liens and encumbrances for items of property, plant and
equipment amounted to €10 million (30/9/2019: €11 million).
Contractual commitments were recorded for items of property, plant and equipment in the
amount of €22 million (30/9/2019: €42 million).
The development of rights of use of leased property, plant and equipment is shown in the
following table.
€ million
Land and
buildings
Vehicles
Others
Total
Net carrying amount
As of 1/10/2018
2,524
88
20
2,633
Additions
344
47
21
412
Depreciation
−263
−39
−8
−311
Impairment
−2
0
0
−2
Reclassifications and net change in consolidation
group
−343
0
−1
−343
Disposals, currency translation and reversals of
impairment losses
−12
−1
0
−14
As of 30/9/2019 and 1/10/2019
2,248
95
32
2,374
Additions
185
61
21
267
Depreciation
−254
−45
−12
−311
Impairment
−4
0
0
−4
Reclassifications and net change in consolidation
group
−63
0
−2
−65
Disposals, currency translation and reversals of
impairment losses
−165
−9
−4
−178
As of 30/9/2020
1,947
103
34
2,084
The decrease in rights of use of €290 million was mainly due to scheduled depreciation of
€311 million. In addition, reclassifications as part of the disposal of the hypermarket business
amounting to €141 million reduce the rights of use. They consist of the reclassification of rights
of use as investment properties and disposals to receivables from finance leases. In addition,
disposals due to termination and modification of contracts amounting to €71 million and
negative currency effects amounting to €62 million reduced the number of rights of use. This
was offset by investments in rights of use in the amount of €267 million.
In accordance with IFRS 5, the scheduled depreciation of METRO China in the previous year
in the amount of €23 million is not included in the current profit or loss for the period from
continuing operations. These impairment losses are included in the movement schedules on the
development of financial assets up to the point of reclassification on 30 September 2019;
consequently, the amounts stated there may differ from the notes on depreciation.
Information on leases is provided in no. 47 – leases
page 250 .
Disclosures on assets/liabilities held for sale in connection with the sale of the hypermarket business and METRO
China can be found under no. 43 – discontinued operations
page 236 .
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
191
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

22. Investment properties
Investment properties are recognised at depreciated cost. As of 30 September 2020, investment
properties totalling €188 million (30/9/2019: €127 million) were recognised. The development of
these real estates is shown in the following table.
€ million
Investment
properties
(owned)
Investment
property
rights of use
Total
Acquisition or production costs
As of 1/10/2018
239
492
731
Currency translation
15
−10
5
Additions to consolidation group
0
0
0
Additions
41
20
24
Disposals
−32
−2
−34
Transfers associated with the tangible assets
22
0
22
As of 30/9/2019 and 1/10/2019
248
500
748
Currency translation
−40
−16
−56
Additions to consolidation group
0
0
0
Additions
1
7
8
Disposals
0
−4
−4
Transfers associated with the tangible assets
−8
282
274
As of 30/9/2020
200
768
969
Depreciation
As of 1/10/2018
145
451
596
Currency translation
9
−10
−1
Additions, scheduled
61
11
17
Additions, impairment
0
0
0
Disposals
−11
0
−11
Reversals of impairment losses
0
0
0
Transfers associated with the tangible assets
18
0
18
As of 30/9/2019 and 1/10/2019
168
453
621
Currency translation
−26
−15
−41
Additions, scheduled
3
14
18
Additions, impairment
3
4
7
Disposals
0
−2
−2
Reversals of impairment losses
0
0
0
Transfers associated with the tangible assets
−8
187
178
As of 30/9/2020
140
641
781
Carrying amount as of 1/10/2018
94
41
135
Carrying amount as of 30/9/2019
80
47
127
Carrying amount as of 30/9/2020
60
127
188
1 Including reclassifications from assets held for sale to investment properties.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
192
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The increase of €60 million primarily includes the transfer of rights of use from property, plant
and equipment due to the disposal of the hypermarket business for €95 million.
The fair values of these investment properties total €362 million (30/9/2019: €250 million)
with a carrying amount of €188 million (30/9/2019: €127 million). They are determined on the
basis of internationally recognised measurement methods, particularly the comparable valuation
method and the discounted cash flow method (level 3 of the 3-level valuation hierarchy of
IFRS 13 (Fair Value Measurement)). This measurement is based on a detailed planning period of
10 years. Aside from market rents, market-based discount rates were used as key valuation
parameters. The discount rates are determined on the basis of analyses of relevant real estate
markets as well as evaluations of comparable transactions and market publications issued by
international consulting firms. The resulting discount rates reflect the respective country and
location risk as well as the property-specific real estate risk. In addition, project developments
are considered to determine the best use.
The fair value is usually assessed by METRO PROPERTIES employees. External expert reports
are used where available.
Rental income from continuing operations amounts to €87 million, with usufructuary rights
accounting for €70 million of this total (2018/19: €71 million, thereof €57 million from
usufructuary rights). The related expenses amount to €60 million, with usufructuary rights
accounting for €51 million (2018/19: €35 million, thereof €26 million from usufructuary rights).
Restrictions on titles in the form of liens and encumbrances amounted to €0 million (30/9/
2019: €0 million). As in the previous year, no contractual commitments for the acquisition of
investment properties were made.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
193
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

23. Financial investments and investments accounted for using the equity
method
The development of financial assets is shown in the following table.
€ million
Loans
Investments
Securities
Total
financial assets
Acquisition or production costs
As of 1/10/2018
35
47
9
91
Currency translation
1
0
0
1
Additions to consolidation group
0
0
0
0
Additions1
3
26
0
29
Disposals1
−5
−7
−7
−19
Reclassifications in accordance with IFRS 5
0
0
0
0
Transfers
−1
0
0
−1
As of 30/9/2019 and 1/10/2019
34
66
2
102
Currency translation
−2
0
0
−2
Additions to consolidation group
0
0
0
0
Additions1
2
11
0
12
Disposals1
−2
−6
0
−9
Reclassifications in accordance with IFRS 5
0
0
0
0
Transfers
0
0
0
0
As of 30/9/2020
32
70
2
104
Depreciation
As of 1/10/2018
4
0
0
4
Currency translation
0
0
0
0
Additions, scheduled
0
0
0
0
Additions, impairment
2
0
0
2
Disposals
−2
0
0
−2
Reclassifications in accordance with IFRS 5
0
0
0
0
Reversals of impairment losses
0
0
0
0
Transfers
0
0
0
0
As of 30/9/2019 and 1/10/2019
5
0
0
5
Currency translation
0
0
0
0
Additions, scheduled
0
0
0
0
Additions, impairment
1
0
0
1
Disposals
0
0
0
0
Reclassifications in accordance with IFRS 5
0
0
0
0
Reversals of impairment losses
0
0
0
0
Transfers
0
0
0
0
As of 30/9/2020
6
0
0
6
Carrying amount as of 1/10/2018
31
47
9
86
Carrying amount as of 30/9/2019
29
66
2
97
Carrying amount as of 30/9/2020
26
70
2
98
1 The measurement effects of equity investments carried at fair value are also shown here under additions and disposals, since they do not involve depreciations in the
narrower sense.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
194
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Habib METRO
Pakistan
OPCI FWP
OPCI FWS
Mayfair group1
€ million
2018/19
2019/20
2018/19
2019/20
2018/19
2019/20
2018/19
2019/20
Disclosures on the income
statement
Sales revenues
11
10
18
19
18
18
17
14
Tax profit for the period from
continuing operations
5
10
12
12
12
13
8
9
Tax profit for the period from
discontinued operations
0
0
0
0
0
0
0
0
Other comprehensive income
0
0
0
0
0
0
0
0
Total comprehensive income
5
10
12
12
12
13
8
9
Dividend payments to the group
2
2
1
1
4
4
0
0
Disclosures on the balance sheet
Non-current assets
38
35
279
271
264
251
185
179
Current assets
22
22
4
8
4
7
2
2
Non-current liabilities
2
6
108
107
96
96
0
0
Current liabilities
2
3
0
0
0
0
2
2
Net assets
56
48
176
172
172
161
184
179
Amount of the share (in %)
40
40
5
5
25
25
40
40
Share of the group in the net
assets
22
19
9
9
43
40
73
72
Adjustment of asset values
13
11
–
–
–
–
–
–
Carrying amount of the share
in the group
35
31
9
9
43
40
73
71
1 Mayfair group comprises 10 real estate companies.
2 METRO acquired the stake in WM Holding (HK) Limited upon closing of the METRO China disposal transaction on 23 April 2020. The data to be disclosed for the equity
investment require a short financial statement of WM Holding (HK) Limited, including first-time consolidation and the effects of purchase price allocation. The financial
statements of the acquiring party are in the process of being prepared.
The disclosures below provide information on investments accounted for using the equity
method.
As of 30 September 2020, shares in investments accounted for using the equity method
amounted to €421 million (30/9/2019: €179 million). Disclosures on the major investments
accounted for using the equity method can be found in the following table.
Apart from Habib METRO Pakistan (closing date 30 June), all companies mentioned above
have 31 December as the closing date. The companies are included in the consolidated financial
statements of METRO AG with their latest available financial statements.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
195
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

WM Holding (HK)
Limited
Miscellaneous
Total
€ million
2018/19
2019/202
2018/19
2019/20
2018/19
2019/20
Disclosures on the income statement
Sales revenues
–
–
141
146
204
207
Tax profit for the period from
continuing operations
–
–
67
67
105
111
Tax profit for the period from
discontinued operations
–
–
0
0
0
0
Other comprehensive income
–
–
0
0
0
0
Total comprehensive income
–
–
67
67
105
111
Dividend payments to the group
–
–
8
7
14
13
Amount of the share (in %)
–
20
–
–
–
–
Carrying amount of the share
in the group
–
250
17
20
179
421
1 Mayfair group comprises 10 real estate companies.
2 METRO acquired the stake in WM Holding (HK) Limited upon closing of the METRO China disposal transaction on 23 April 2020. The data to be disclosed for the equity
investment require a short financial statement of WM Holding (HK) Limited, including first-time consolidation and the effects of purchase price allocation. The financial
statements of the acquiring party are in the process of being prepared.
METRO’s representation on the supervisory board of OPCI FRENCH WHOLESALE PROPERTIES
– FWP ensures that significant influence is maintained and that the holding will be accounted for
using the equity method although the investment only amounts to 5%.
The investments accounted for using the equity method within the group are mainly associate
companies and rental companies. The main purpose of the leasing companies is to acquire, lease
out and manage assets. The assets of these real estate companies are mainly leased by METRO
companies.
Disclosures on assets held for sale/liabilities in connection with the disposal of METRO China can be found under no.
43 – discontinued operations
page 236 .
24. Other financial and other non-financial assets
30/9/20191
30/9/2020
Remaining term
Remaining term
€ million
Total
up to
1 year
over
1 year
Total
up to
1 year
over
1 year
Receivables due from suppliers
316
316
1
243
243
1
Miscellaneous financial assets
455
306
149
466
282
184
thereof leasing receivables
(159)
(21)
(139)
(213)
(42)
(171)
Other financial assets
771
622
150
709
525
185
Other tax receivables
178
178
0
261
261
0
Prepaid expenses and deferred charges
82
66
16
85
77
8
Miscellaneous non-financial assets
38
35
4
47
39
8
Other non-financial assets
299
279
20
394
377
16
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
196
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Receivables due from suppliers comprise both invoiced and deferred income for subsequent
supplier compensation (for example bonuses, advertising subsidies) and creditors with debit
balances.
The miscellaneous financial assets primarily consist of receivables from financing lease
agreements, receivables from credit card transactions, receivables from other financial
transactions and receivables and other assets from the real estate sector. Previous year’s figures
included receivables from the disposal of non-current assets.
The other tax receivables include value added tax refunds, later offsettable input tax and
miscellaneous tax receivables. Value added tax refund claims have increased, in particular due to
legal changes in Russia, as have value added tax liabilities.
Prepaid expenses and deferred charges include deferred charges and deferred rental, leasing
and interest charges as well as miscellaneous prepaid expenses.
Miscellaneous non-financial assets mainly consist of prepayments on inventories and raw
materials and supplies. In addition, they include contract assets in the amount of €1 million (30/
9/2019: €1 million) as well as assets for the right to recover products from a customer on settling
the refund liabilities in the amount of €1 million (30/9/2019: €1 million).
25. Deferred tax assets/deferred tax liabilities
Deferred tax assets on tax loss carry-forwards and temporary differences amount to
€1,242 million before offsetting (30/9/2019: €1,188 million), an increase of €54 million compared
to 30 September 2019. The carrying amounts of deferred tax liabilities decreased by €2 million
to €1,057 million compared with the previous year (30/9/2019: €1,059 million).
Deferred taxes relate to the following balance sheet items:
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
197
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

30/9/20191
30/9/2020
Change through
profit or loss
€ million
Assets
Liabilities
Assets
Liabilities
Assets
Liabilities
Goodwill
23
33
25
35
2
2
Other intangible assets
10
103
13
117
3
14
Property, plant and equipment and
investment properties
75
808
80
699
5
−118
Financial investments and investments
accounted for using the equity method
5
5
2
4
−3
0
Inventories
19
1
17
1
−2
0
Other financial and non-financial assets
28
52
54
89
26
38
Assets held for sale
0
0
0
0
0
0
Provisions for post-employment benefits
plans and similar obligations
118
30
127
33
7
2
Other provisions
33
2
41
4
9
2
Financial liabilities
850
3
763
29
−87
27
Other financial and non-financial liabilities
49
23
124
37
38
15
Liabilities related to assets held for sale
0
0
0
0
0
0
Outside basis differences
0
0
0
8
0
8
Write-downs of temporary differences
−88
0
−76
0
12
0
Loss carry-forwards
67
0
70
0
3
0
Carrying amount of deferred taxes
before offsetting
1,188
1,059
1,242
1,057
14
−11
Offsetting
−904
−904
−990
−990
11
11
Carrying amount of deferred taxes
284
155
252
66
25
0
1 Adjustment of previous year due to full retrospective adjustment of IFRS 16 (Leases).
Of the reported balance of deferred tax assets and liabilities, €49 million (30/9/2019:
€57 million) are attributable to the group of incorporated companies of METRO AG. The
additional surplus of €136 million (30/9/2019: €73 million) is largely attributable to temporary
differences at various foreign subsidiaries. Based on business planning, realisation of these tax
assets is to be considered sufficiently likely.
In accordance with IAS 12 (Income Taxes), deferred tax liabilities relating to differences
between the carrying amount of a subsidiary’s pro rata equity in the balance sheet and the
carrying amount of the investment for this subsidiary in the parent company’s tax statement
must be recognised (so-called outside basis differences) if the tax benefit is likely to be realised
in the future. The differences can primarily be attributed to retained earnings of subsidiaries in
Germany and abroad. No deferred taxes were recognised for these retained earnings as they will
be reinvested over an indefinite period of time or are not subject to relevant taxation. Any
dividends paid by subsidiaries would be subject to dividend tax. In addition, foreign dividends
may trigger a withholding tax. As of 30 September 2020, a deferred tax liability from outside
basis differences was recognised for planned dividend payments in the amount of €8 million
(30/9/2019: €0 million). The sum of the amount of temporary differences in connection with
investments in subsidiaries for which no deferred tax liabilities were recognised was not
determined as this would have been disproportionately expensive due to the level of detail of
the METRO group.
No deferred tax assets were capitalised for the following tax loss carry-forwards and interest
carry-forwards or temporary differences because realisation of the assets in the short to medium
term is not expected:
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
198
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

€ million
30/9/20191
30/9/2020
Corporate tax losses
4,883
4,686
Trade tax losses
3,679
3,752
Interest carry-forwards
83
90
Temporary differences
331
288
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
The loss carry-forwards as of the closing date predominantly concern the German consolidation
group. They can be carried forward without limitation.
TAX EFFECTS ON COMPONENTS OF OTHER COMPREHENSIVE INCOME
2018/191
2019/20
€ million
Before
taxes
Taxes
After taxes
Before
taxes
Taxes
After taxes
Currency translation differences from
translating the financial statements
of foreign operations
132
0
132
−468
0
−468
thereof currency translation
differences from net investments in
foreign operations
(40)
(0)
(40)
(−72)
(0)
(−72)
Effective portion of gains/losses from
cash flow hedges
2
0
2
−2
0
−1
Effects from the fair value measurements
of equity instruments
−3
0
−3
0
0
0
Effects from the fair value measurements
of debt instruments
0
0
0
0
0
0
Remeasurement of defined benefit
pension plans
−94
22
−73
7
−2
5
Remaining income tax on other
comprehensive income
0
−4
−4
0
0
0
39
17
56
−463
−2
−466
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
Deferred taxes on components of other comprehensive income primarily apply to the
remeasurement of defined benefit pension plans. The other components are not tax-effective.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
199
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

26. Inventories
€ million
30/9/2019
30/9/2020
Food merchandise
1,408
1,397
Non-food merchandise
539
492
1,946
1,888
The inventories were reduced by €58 million from €1,946 million to €1,888 million.
Negative currency effects, resulting in particular from the development of the Russian rouble,
reduced inventories by a total of €127 million.
Inventories include impairments of €63 million (30/9/2019: €62 million). The inventories are
subject to the customary or statutory retention of title.
27. Trade receivables
Trade receivables declined by €52 million, from €482 million to €429 million. These are
receivables with a remaining term of up to 1 year.
Currency effects decreased the trade receivables by €19 million. Trade receivables were also
reduced by the €42 million year-on-year impairment increase.
28. Impairments of financial assets
As of 30 September 2020, impairment losses recognised in the balance sheet in accordance
with IFRS 9 amounted to €160 million (30/9/2019: €104 million).
The following explanations relate to significant financial assets to which the impairment
requirements of IFRS 9 are applied.
For trade receivables, METRO makes use of the simplified procedure to determine expected
credit losses provided for in IFRS 9. METRO records the expected credit losses over the entire
term of the financial instruments on the basis of a provision matrix. Trade receivables are
combined in different portfolios with similar credit risk characteristics for this purpose. This is
based on the regions used for METRO’s segment reporting.
The loss default rates per past-due category 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 global corporate insolvency index.
Due to Covid-19, this input parameter was adjusted accordingly in the current financial year.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
200
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The table below shows the expected credit losses on trade receivables for each maturity
band as of the closing date, calculated on the basis of the provision matrix:
€ million
Total
thereof
not
past-due
thereof
up to
90 days
past-due
thereof
91 to
180 days
past-due
thereof
181 to
270 days
past-due
thereof
271 to
360 days
past-due
thereof
more than
360 days
past-due
Gross carrying amount
454
353
86
7
3
3
3
Bandwidth of calculated
default rates
0,21 % to
1,12 %
1,00 % to
6,97 %
3,40 % to
26,00 %
6,62 % to
28,18 %
10,72 % to
47,34 %
11,91 % to
86,49 %
Risk provision
as of 30/9/2019
7
2
2
1
0
1
1
€ million
Total
thereof
not
past-due
thereof
up to
90 days
past-due
thereof
91 to
180 days
past-due
thereof
181 to
270 days
past-due
thereof
271 to
360 days
past-due
thereof
more than
360 days
past-due
Gross carrying amount
387
315
56
4
3
3
5
Bandwidth of calculated
default rates
0,21 % to
1,15 %
0,79 % to
6,27 %
3,27 % to
19,17 %
5,90 % to
23,09 %
10,00 % to
31,25 %
13,75 % to
81,25 %
Risk provision
as of 30/9/2020
21
15
3
0
0
1
2
Besides the impairment recognised based on the presented regional provision matrix, the risk
provision of €21 million (30/9/2019: €7 million) also includes an additional country and customer
group-specific risk provision against the background of Covid-19.
Impairment on trade receivables is reconciled according to the simplified calculation as
follows:
€ million
Trade receivables
As of 1/10/2018
47
Addition to impairment through profit or loss
23
Reversal of impairment through profit or loss
−15
Utilisation
−8
Currency effects
1
Other changes
0
As of 30/9/2019 and 1/10/2019
47
Addition to impairment through profit or loss
60
Reversal of impairment through profit or loss
−9
Utilisation
−8
Currency effects
−2
Other changes
0
As of 30/9/2020
89
The impairment as of 30 September 2020 amounted to €89 million (30/9/2019: €47 million) and
include impairments of €68 million (30/9/2019: €40 million) on individual receivables for which
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
201
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

there are objective indications of an impairment of creditworthiness. The increase is mainly due
to Covid-19.
The following table shows the gross carrying amounts of trade receivables that were or were
not past due as of the closing date, which were depreciated either on the basis of the respective
applied provision matrix or on the basis of objective indications of default:
€ million
Trade receivables
Not past-due
367
Up to 90 days past-due
93
91 to 180 days past-due
15
181 to 270 days past-due
6
271 to 360 days past-due
6
More than 360 days past-due
31
Gross carrying amount
517
Impairment
−47
Maximum credit risk as of 30/9/2019
470
€ million
Trade receivables
Not past-due
364
Up to 90 days past-due
72
91 to 180 days past-due
12
181 to 270 days past-due
13
271 to 360 days past-due
6
More than 360 days past-due
41
Gross carrying amount
509
Impairment
−89
Maximum credit risk as of 30/9/2020
421
In addition, collateral is available for trade receivables of €8 million (30/9/2019: €12 million).
These receivables were not impaired.
METRO applies the general impairment requirements of IFRS 9 to receivables from suppliers,
credit card transactions and loans. A possible credit risk in these cases is determined on the
basis of the counterparty’s creditworthiness. For this purpose, METRO uses external ratings of
well-known rating agencies as well as internal credit risk rating grades based on the risk of
default of the respective financial instrument. 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.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
202
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The following table shows the development of risk provisions in relation to financial assets to
which the general impairment requirements of IFRS 9 are applied:
€ million
No signi-
ficantly in-
creased credit
risk since
recognition
(stage 1)
Increased
credit risk
(stage 2)
Impaired
credit-worthiness
(stage 3)
Total
As of 1/10/2018
1
0
28
29
Newly originated/acquired financial assets
0
0
0
0
Other changes within one stage
0
0
9
9
Transfer to stage 1
0
0
0
0
Transfer to stage 2
0
0
0
0
Transfer to stage 3
0
0
0
0
Derecognised financial assets
0
0
−5
−5
Utilisation
0
0
−4
−4
Other changes1
0
0
−2
−2
As of 30/9/2019 and 1/10/2019
1
0
27
28
Newly originated/acquired financial assets
0
0
5
5
Other changes within one stage
0
0
7
7
Transfer to stage 1
0
0
0
0
Transfer to stage 2
0
0
0
0
Transfer to stage 3
0
0
0
0
Derecognised financial assets
0
0
−2
−2
Utilisation
0
0
−3
−3
Other changes1
0
0
−1
−1
As of 30/9/2020
1
0
33
34
1 Currency translation differences, changes in the consolidation group and reclassifications to assets held for sale are recognised in other changes.
Risk provisions as of 30 September 2020 amount to €34 million (30/9/2019: €28 million).
Stage 1 of the model contains financial assets that have a low credit risk or whose credit risk
has not increased significantly since the initial recognition of the asset. At this stage, the risk
provision is calculated as the 12-month expected credit loss. If the credit risk on the closing date
is significantly higher than at the time of initial recognition, the financial asset is reclassified to
stage 2. The amount of the risk provision is determined at this level as the expected losses that
can arise from all possible default events over the expected entire term of the financial
instrument. If there is objective evidence that a financial asset will not be collected in whole or in
part, it is reclassified to stage 3. Default is defined as the failure to maintain contractually agreed
cash flows.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
203
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The table below shows the gross carrying amounts for those financial instruments for which
the impairment losses are determined according to the general approach; they are differentiated
according to the external rating of the counterparties:
€ million
No signi-
ficantly in-
creased credit
risk since
recognition
(stage 1)
Increased
credit risk
(stage 2)
Impaired
credit-worthiness
(stage 3)
Total
AAA, AA+, AA, AA-
7
1
1
9
A+, A, A-
16
0
0
17
BBB+, BBB, BBB-
10
0
0
10
BB+, BB, BB-
2
0
0
2
B+ or lower
44
0
0
44
Gross carrying amount
80
1
2
82
Impairment
0
0
−1
−1
Maximum credit risk as of 30/9/2019
80
1
1
82
€ million
No signi-
ficantly in-
creased credit
risk since
recognition
(stage 1)
Increased
credit risk
(stage 2)
Impaired
credit-worthiness
(stage 3)
Total
AAA, AA+, AA, AA-
11
0
2
12
A+, A, A-
13
0
0
14
BBB+, BBB, BBB-
9
0
0
10
BB+, BB, BB-
0
0
0
0
B+ or lower
25
0
0
25
Gross carrying amount
58
0
2
60
Impairment
0
0
−1
−1
Maximum credit risk as of 30/9/2020
58
0
1
59
METRO minimises credit risk by exclusively investing in first-class debt instruments from
counterparties with a good to very good external rating (investment grade). Therefore, a
significant portion of the financial assets is allocated to stage 1 of the impairment model.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
204
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

For counterparties that do not have an external rating and are therefore assigned to the
internal risk classes, the credit risk determined according to the general approach is as follows:
€ million
No signi-
ficantly in-
creased credit
risk since
recognition
(stage 1)
Increased
credit risk
(stage 2)
Impaired
credit-worthiness
(stage 3)
Total
Internal risk class 1 (not past due or up to 30 days
past-due)
294
0
2
297
Internal risk class 2 (31 to 90 days past-due)
15
1
1
16
Internal risk class 3 (more than 90 days past-due)
12
0
33
46
Gross carrying amount
321
1
37
358
Impairment
−1
0
−27
−27
Maximum credit risk as of 30/9/2019
320
1
10
331
€ million
No signi-
ficantly in-
creased credit
risk since
recognition
(stage 1)
Increased
credit risk
(stage 2)
Impaired
credit-worthiness
(stage 3)
Total
Internal risk class 1 (not past due or up to 30 days
past-due)
218
0
8
226
Internal risk class 2 (31 to 90 days past-due)
7
1
2
10
Internal risk class 3 (more than 90 days past-due)
15
0
38
52
Gross carrying amount
239
1
48
288
Impairment
−1
0
−32
−32
Maximum credit risk as of 30/9/2020
238
1
17
256
29. Cash and cash equivalents
€ million
30/9/2019
30/9/2020
Cheques and cash on hand
20
20
Bank deposits and other financial assets with short-term liquidity
479
1,505
500
1,525
Of the cash and cash equivalents, €0 million (30/9/2019: €0 million) is subject to restrictions on
title.
For more information, see the cash flow statement and no. 41 – notes to the cash flow statement
page 233 .
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
205
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

30. Assets held for disposal/liabilities related to assets held for sale
Assets held for sale/liabilities related to assets held for sale include a real estate company as of
30 September 2020, which is to be seen in connection with the disposal of the hypermarket
business. There are €22 million as ‘assets held for sale’ and €7 million as ‘liabilities related to
assets held for sale’.
Disclosures on assest held for sale/liabilities in connection with the sale of the hypermarket business and METRO
China can be found under no. 43 – discontinued operations
page 236 .
31. Equity
The subscribed capital of METRO AG amounts to €363,097,253. It is divided as follows:
No-par-value bearer shares, accounting par value of €1.00
30/9/2019
30/9/2020
Ordinary shares
Number of shares
360,121,736
360,121,736
€
360,121,736
360,121,736
Preference shares
Number of shares
2,975,517
2,975,517
€
2,975,517
2,975,517
Total shares
Number of shares
363,097,253
363,097,253
Total share capital
€
363,097,253
363,097,253
As of 30 September 2020 and as of 30 September 2019, the subscribed capital of METRO AG
amounted to €363,097,253. It is divided into a total of 360,121,736 ordinary no-par-value bearer
shares (pro rata value of the share capital: €360,121,736, approximately 99.18%), as well as
2,975,517 preference no-par-value bearer shares (pro rata value of the share capital: €2,975,517,
approximately 0.82%). Each no-par-value share in the company has a notional interest of €1.00
in the share capital.
Each ordinary share entitles to a single vote in the company’s Annual General Meeting. The
ordinary shares carry full dividend rights. In contrast to ordinary shares, preference shares do
not carry voting rights but confer a preferential entitlement to profits as prescribed in § 21 of the
Articles of Association of METRO AG, which state:
‘(1) Holders of non-voting preference shares will receive a preliminary dividend from the
annual balance sheet profit in the amount of €0.17 for each preference share.
(2) Should the balance sheet profit available for distribution not suffice in any one financial
year to pay the preliminary dividend, the arrears (excluding any interest) shall be paid from the
balance sheet profit of subsequent financial years in an order based on age, meaning in such
manner that any older arrears are paid off prior to any more recent ones and that the preference
dividends payable from the profit of a financial year are not distributed until all accrued arrears
have been paid.
(3) Following distribution of the preliminary dividends, the holders of ordinary shares will be
paid a dividend of €0.17 for each ordinary share. Subsequently, a non-cumulative extra dividend
per share will be paid to the holders of non-voting preference shares. The extra dividend shall
amount to 10% of the dividend paid to the holders of ordinary shares under observation of
Section 4, provided such dividend equals or exceeds €1.02 per ordinary share.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
206
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

(4) The holders of non-voting preference shares and of ordinary shares will equally share in
any additional profit distribution in the proportion of their shares in the share capital.’
Authorised capital
The Annual General Meeting on 16 February 2018 authorised the Management Board to increase
the share capital, subject to the consent of the Supervisory Board, by issuing new ordinary
bearer shares against cash or non-cash contributions in one or several tranches for a total
maximum of €181,000,000 by 28 February 2022 (authorised capital). The Management Board is,
subject to the consent of the Supervisory Board, authorised to exclude shareholder subscription
rights in certain cases. To date, the authorised capital has not been fully utilised.
Contingent capital
The Annual General Meeting held on 16 February 2018 resolved a contingent increase in the
share capital by up to €50,000,000, divided into a maximum of 50,000,000 ordinary shares
(contingent capital). This contingent capital increase is related to the establishment of an
authority of the Management Board to issue, subject to the consent of the Supervisory Board,
one or several tranches of warrant or convertible bearer bonds (collectively ‘bonds’) with a
nominal value of up to €1,500,000,000 prior to 15 February 2023, and to grant the holders of
warrant or convertible bearer bonds warrant or conversion rights or to impose warrant or
conversion obligations on them for ordinary bearer shares in METRO AG representing up to
€50,000,000 of the share capital in accordance with the terms of the warrant or convertible
bearer bonds, or to provide for the company’s right to deliver ordinary shares in the company as
full or partial payment in lieu of a cash redemption of the bonds. The Management Board is,
subject to the consent of the Supervisory Board, authorised to exclude shareholder subscription
rights in certain cases. To date, no warrants and/or convertible bearer bonds have been issued
under the aforementioned authority.
Repurchase of own shares
On the basis of § 71 Section 1 No. 8 of the German Stock Corporation Act, the Annual General
Meeting on 11 April 2017 authorised the company to acquire own shares of any share class
representing a maximum of 10% of the share capital issued at the time the authority became
effective, or – if this figure is lower – at the time the authority is exercised. The authority expires
on 28 February 2022. To date, neither the company nor any company controlled or majority-
owned by it, any other company acting on behalf of the company or of any company controlled
or majority-owned by that company has exercised this authority.
For more information about the company’s authorised capital, contingent capital, the authority to issue warrant
and/or convertible bearer bonds as well as share repurchasing, see chapter 7 takeover-related disclosures
page
123 in the combined management report.
Capital reserve and reserves retained from earnings
Prior to the effective date of the reclassification and demerger of CECONOMY AG on 12 July
2017, METRO AG was not yet a group within the meaning of IFRS 10. Accordingly, combined
financial statements of METRO Wholesale & Food Specialist GROUP (hereinafter: MWFS
GROUP) were prepared for the IPO prospectus of METRO AG. Equity in the combined financial
statements was the residual amount from the combined assets and liabilities of MWFS GROUP.
Following the demerger, METRO became an independent group with METRO AG as the listed
parent company. Therefore, the equity in the consolidated financial statements is subdivided
according to legal requirements. The subscribed capital of €363 million and the capital reserve
of €6,118 million were recognised at the carrying amounts from the Annual Financial Statements
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
207
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

of METRO AG as of 30 September 2017. For this purpose, a transfer was made from the equity
item net assets, recognised as of 1 October 2016, attributable to the former METRO GROUP of
the combined financial statements of MWFS GROUP. The remaining negative amount of this
equity item was reclassified to reserves retained from earnings. It cannot be traced back to a
history of loss.
An amount of €1,070 million was withdrawn from the capital reserve in financial year 2019/20.
Correspondingly, this amount was reclassified to reserves retained from earnings in the
consolidated financial statements.
Reserves retained from earnings can be broken down as follows:
€ million
30/9/20191
30/9/2020
Effective portion of gains/losses from cash flow hedges
2
1
Equity and debt instruments
−3
1
Currency translation differences from translating the financial statements of foreign
operations
−607
−1,076
Remeasurement of defined benefit pension plans
−500
−491
Income tax on components of other comprehensive income
106
103
Other reserves retained from earnings
−3,165
−1,896
Reserves retained from earnings
−4,167
−3,358
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
Changes in the financial instruments presented above consist of the following components:
€ million
2018/19
2019/20
Initial or subsequent measurement of derivative financial instruments
0
−3
Derecognition of cash flow hedges
2
2
thereof in inventories
(0)
(0)
thereof in net financial result
(2)
(2)
Effective portion of gains/losses from cash flow hedges
2
−2
Equity and debt instruments
−3
3
Measurement result from financial instruments
−1
2
The valuation effects of equity and debt instruments relate to the subsequent measurement of
investments.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
208
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

In addition, currency translation differences recognised in equity had an impact of
€−468 million (2018/19: €130 million). They can be broken down as follows:
The translation of the local balance sheets to the group currency without affecting profit or
loss resulted in a decrease of €459 million in equity, particularly due to the appreciation of the
Russian rouble. In addition, the effective derecognition of cumulative currency differences of
companies that were deconsolidated or discontinued operation within financial year 2019/20
had an effect of €−10 million. €13 million of it is attributable to continuing operations and
€−23 million to discontinued operations from the disposal of METRO China.
The remeasurement of defined benefit pension plans resulted in effects outside of profit or
loss before deferred taxes in the amount of €7 million.
As part of the deconsolidation of the hypermarket business, the effects of €−6 million from
the measurement of pension plans, the related income tax effects and the fair value
measurement of investments without reclassification, which were included in other
comprehensive income, were reclassified to other reserves retained from earnings.
An overview of the tax effects on components of other comprehensive income can be found under no. 25 – deferred
tax assets/deferred tax liabilities
page 197 .
Other reserves retained from earnings increased by €1,269 million from €−3,165 million to
€−1,896 million. This increase is mainly influenced by the €1,070 million withdrawal from the
capital reserve as well as the profit or loss for the period of €460 million attributable to the
shareholders of METRO AG. It was offset by the dividend payment for financial year 2018/19 of
€−254 million.
Non-controlling interests
Non-controlling interests comprise the shares held by third parties in the equity of the
consolidated subsidiaries. As of 30 September 2020, they amounted to €8 million (30/9/2019:
€31 million). The decrease in non-controlling interests is mainly due to the disposal of METRO
China.
An overview of subsidiaries with major non-controlling interests is published in the notes to the group accounting
principles and methods
page 151 .
Appropriation of the balance sheet profit, dividend
Dividend distribution of METRO AG is based on the Annual Financial Statements of METRO AG
prepared under German commercial law.
Regarding the appropriation of the balance sheet profit for 2019/20, the Management Board
of METRO AG will propose to the Annual General Meeting to distribute from the reported
balance sheet profit of €267 million a dividend in the amount of €0.70 per ordinary share and
€0.70 per preference share – that is, a total of €254 million – and to carry forward the remaining
amount to the new account.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
209
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

32. Provisions for post-employment benefits plans and similar obligations
€ million
30/9/2019
30/9/2020
Provisions for post-employment benefits plans (employer’s commitments)
414
403
Provisions for indirect commitments
17
24
Provisions for voluntary pension benefits
0
0
Provisions for post-employment benefits plans
78
92
509
519
Provisions for obligations similar to pensions
34
31
543
550
Provisions for post-employment benefits plans are recognised in accordance with IAS 19
(Employee Benefits).
Provisions for post-employment benefits plans consist of commitments primarily related to
benefits defined by the provisions of company pension plans. These take the form of defined
benefit plans directly from the employer (employer’s commitments) and defined benefit plans
from external pension providers (benevolent funds in Germany and international pension funds).
The external providers’ assets serve exclusively to finance the pension entitlements and qualify
as plan assets. The benefits under the different plans are based on performance and length of
service.
The most important performance-based pension plans are described in the following.
Germany
METRO grants many employees in Germany retirement, disability and surviving dependant’s
benefits. New commitments are granted in the form of ‘defined benefit’ commitments in the
meaning of IAS 19 (contribution-oriented commitments pursuant to German company pension
law), which comprise a payment contribution component and an employer-matching
component. Contributions are paid to a pension insurance from which benefits are paid out
when the insured event occurs. A provision is recognised for entitlements not covered by
pension insurance.
In addition, various pension funds exist that are closed for new contributions. In general,
these provide for lifelong pensions starting with the start of retirement or recognised invalidity.
Benefits are largely defined as fixed payments or on the basis of set annual increases. In special
cases, benefits are calculated in consideration of accrued statutory pension entitlements. The
commitments provide for a widow’s or widower’s pension of varying size, depending on the
benefits the former employee received or would have received in case of invalidity.
There are also deferred compensation contracts with the Hamburger Pensionskasse
(Hamburg pension fund).
Some of the pension obligations in Germany are based on METRO AG’s assumption of debt
for pension commitments to former employees of the hypermarket business.
Netherlands
A defined benefit pension plan exists in the Netherlands which provides for pension payments in
addition to invalidity and death benefits. The amount of the benefits depends on the
pensionable salary per year of service. Benefits are funded through a pension fund whose
decision-making bodies (management board, as well as administration, finance and investment
committee) include employer and employee representatives. The fund’s management board has
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
210
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

responsibility for asset management. The pension fund’s investment committee exists for this
purpose. In line with statutory minimum funding requirements, the pension fund’s management
board must ensure that commitments are covered by assets at all times. In case of underfunding,
the pension fund’s management board may take different measures to compensate for deficient
cover. These measures include the requirement for additional contributions by the employer and
curtailments in employee benefits.
In financial year 2019/20, the current pension plan was closed with effect from 1 January 2021
for new entrants and future increases in pension entitlements. It will be replaced by a Collective
Defined Contribution (CDC) plan for future entitlements.
United Kingdom
In July 2012, the former METRO GROUP sold its wholesale business in the United Kingdom to
Booker Group PLC. Pension commitments were not part of the sale. Since the date of the
disposal, only vested benefits and current pensions from service years at the former METRO
GROUP have existed. In accordance with legal stipulations, the vested interests must be adjusted
for inflation effects. The commitments are covered by assets which are managed and invested by
a corporate trustee. A major share of these commitments was fully funded through a buy-in. The
management board of this corporate trustee consists of employer and employee
representatives. In any case, the trustee must ensure that benefits can be paid at all times in the
future. This is regulated on the basis of statutory minimum financing requirements. In case of
underfunding, the trustee may require additional employer contributions to close the funding
gap.
Belgium
There are both retirement pensions and capital commitments; the amount depends on the
pensionable length of service and pensionable income. In addition, groups of employees are
granted interim allowances. In principle, benefits are funded through group insurance contracts
that are subject to Belgian regulatory law. Additional retirement plans are reported cumulatively
under other countries.
The following table provides an overview of the present value of defined benefit obligations
by METRO countries as well as material obligations:
€ million
30/9/2019
30/9/2020
Germany
448
484
Netherlands
611
555
United Kingdom
241
254
Belgium
85
79
Other countries
131
130
1,516
1,502
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
211
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The plan assets of METRO are distributed between the following countries:
€ million
30/9/2019
30/9/2020
Germany
81
97
Netherlands
671
695
United Kingdom
237
255
Belgium
52
54
Other countries
25
25
1,066
1,126
The above commitments are valued on the basis of actuarial calculations in accordance with
relevant provisions of IAS 19. The basis for the measurement is the legal and economic
circumstances prevailing in each country.
The following assumptions regarding the material parameters were used in the actuarial
measurements:
30/9/2019
30/9/2020
%
Germany
Nether-
lands
United
Kingdom
Belgium
Germany
Nether-
lands
United
Kingdom
Belgium
Actuarial interest rate
1.00
1.20
2.00
1.20
1.20
1.40
1.30
1.20
Pension trend
1.50
0.70
2.50
2.00
1.50
0.70
2.20
2.00
As in previous years, METRO used generally recognised methods to determine the actuarial
interest rate. With these, the respective actuarial interest rate based on the yield of investment
grade corporate bonds is determined as of the closing date taking account of the currency and
maturity of the underlying obligations. The actuarial interest rate for the Eurozone and the UK is
based on the results of a method applied in a uniform manner across the group. The interest rate
for this is set on the basis of the returns of high-quality corporate bonds and the duration of
commitments. In countries without a liquid market of suitable corporate bonds, the actuarial
interest rate was determined on the basis of government bond yields.
Aside from the actuarial interest rate, the pension trend represents another key actuarial
parameter. In Germany, the rate of pension increases is derived directly from the inflation rate
insofar as pension adjustments can be determined on the basis of the increase in the cost of
living. In international companies, pension adjustments are also generally determined on the
basis of the inflation rate.
The other parameters are not relevant for the measurement of pension obligations.
The impact of changes in fluctuation and mortality assumptions was analysed for major plans.
As of 30 September 2020, the mortality rates for the German group companies are based on the
2018 G tables from Prof. Dr Klaus Heubeck.
The actuarial measurements outside of Germany are based on country-specific mortality
tables. The resulting effects of fluctuation and mortality assumptions have been deemed
immaterial and are not listed as a separate component.
The results of a sensitivity analysis for the key measurement parameters with respect to the
present value of pension entitlements are presented below. The actuarial interest rate and the
pension trend were identified as key parameters with an impact on the present value of pension
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
212
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

entitlements. The sensitivity analysis used the same methods as were applied in the previous
year. The analysis considered changes in parameters that are considered possible within reason.
The selection of the respective spectrum of possible changes in parameters is based on
historical multi-year observations.
The following illustrates the impact of an increase/decrease in the actuarial interest rate by
100 basis points or an increase/decrease in the pension trend by 25 basis points. For
interpretation of the values, it should be noted that the obligations in the Netherlands and the
United Kingdom are covered by life insurance policies to a large extent and that the plan assets
also regularly show a compensating sensitivity with regard to the development of the general
interest rate level.
30/9/2019
30/9/2020
€ million
Germany
Nether-
lands
United
Kingdom
Belgium
Germany
Nether-
lands
United
Kingdom
Belgium
Actuarial
interest rate
Increase by
100 basis
points
−59
−126
−38
−4
−56
−108
−40
−4
Decrease by
100 basis
points
77
175
50
6
73
149
52
6
Pension trend
Increase by
25 basis points
12
19
7
0
12
16
7
0
Decrease by
25 basis points
−11
−18
−6
0
−11
−16
−7
0
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
213
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Changes in the present value of defined benefit obligations have developed as follows:
€ million
2018/19
2019/20
Present value of defined benefit obligations
As of the beginning of the period
1,251
1,516
Recognised under
50
39
interest expenses
29
20
current service cost
21
29
past service cost (incl. curtailments and changes)
0
−10
settlement expenses
0
0
Recognised outside of profit or loss under
‘remeasurement of defined benefit pension plans’ in other comprehensive income
251
−40
Actuarial gains/losses from changes in
demographic assumptions (−/+)
10
−13
financial assumptions (−/+)
237
−20
experience-based correction (−/+)
4
−7
Other effects
−36
−13
Benefit payments (incl. tax payments)
−48
−47
Contributions from plan participants
9
9
Change in consolidation group/transfers
1
0
Assumption of debt with regard to former employees of the hypermarket business
0
39
Currency effects
2
−14
As of end of period
1,516
1,502
In Germany, assets held for sale in connection with the disposal of the hypermarket business
were reclassified as of 30 September 2018 in accordance with IFRS 5. In financial year 2019/20,
METRO AG declared an assumption of debt for former (inactive) employees of the hypermarket
business in Germany. As a result, a pension liability of €39 million was recognised for inactive
employees and pensioners under IAS 19 (reclassification from IFRS 5).
The negative past service costs of €10 million are mainly attributable to the plan conversion
in the Netherlands.
Changes in parameters on the basis of actuarial calculations led to a total decrease in the
present value of defined benefit obligations by €33 million (2018/19: increase of €247 million).
Most of the effects result from the increase of the applied invoice rates.
The weighted average term of defined benefit commitments for the countries with material
pension obligations amounts to:
Years
30/9/2019
30/9/2020
Germany
16
16
Netherlands
24
23
United Kingdom
18
18
Belgium
6
6
Other countries
11
11
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
214
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The present value of defined benefit obligations can be broken down as follows based on
individual groups of eligible employees:
%
30/9/2019
30/9/2020
Active members
34
32
Former claimants
38
39
Pensioners
28
29
The granting of defined benefit pension entitlements exposes METRO to various risks. These
include general actuarial risks resulting from the measurement of pension commitments (for
example, interest rate risks) as well as capital and investment risks related to plan assets.
With a view to the funding of future pension payments from indirect commitments and a
stable actuarial reserve, METRO primarily invests plan assets in low-risk investment forms. The
funding of direct pension commitments is secured through operating cash flow at METRO.
The fair value of plan assets by asset category can be broken down as follows:
30/9/2019
30/9/2020
%
€ million
%
€ million
Fixed-interest securities
38
407
40
447
Shares, funds
25
264
23
260
Real estate
5
50
4
42
Other assets
32
345
33
377
100
1,066
100
1,126
Fixed-interest securities, shares and funds are regularly traded in active markets. As a result, the
relevant market prices are available. The asset category ‘fixed-interest securities’ only includes
investments in investment grade corporate bonds, government bonds and mortgage-backed
bonds (investment grade). Risk within the category ‘shares, funds’ is minimised through
geographic diversification.
The majority of real estate assets are invested in real estate funds.
Other assets essentially comprise receivables from first-class insurance companies in
Germany, Belgium and the United Kingdom.
The actual return on plan assets amounted to €56 million in the reporting period (2018/19:
€125 million).
For financial year 2020/21, the company expects employer payments to external pension
providers totalling approximately €12 million and employee contributions of €7 million in plan
assets, with contributions in the Netherlands, Belgium and Germany accounting for the major
share of this total. Expected contributions from payment contribution commitments in Germany
are not included in expected payments.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
215
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The fair value of plan assets developed as follows:
€ million
2018/19
2019/20
Change in plan assets
Fair value of plan assets as of beginning of period
940
1,066
Recognised under
23
16
interest income
23
16
Recognised outside of profit or loss under remeasurement
of defined benefit pension plans in other comprehensive income
102
41
Gains/losses from plan assets excl. interest income (+/−)
102
41
Other effects
0
3
Benefit payments (incl. tax payments)
−27
−26
Settlement payments
0
0
Employer contributions
18
22
Contributions from plan participants
9
9
Change in consolidation group/transfers
0
0
Assumption of debt with regard to former employees of the hypermarket business
0
6
Currency effects
1
−8
Fair value of plan assets as of end of period
1,066
1,126
Due to the assumption of debt in Germany for former (inactive) employees of the hypermarket
business, additional plan assets for pension liabilities to inactive employees and pensioners of
€6 million were recognised under IAS 19 (reclassification from IFRS 5).
€ million
30/9/2019
30/9/2020
Financing status
Present value of defined benefit obligations
1,516
1,502
less the fair value of plan assets
1,066
1,126
Asset adjustment (asset ceiling)
59
141
Net liability/assets
509
517
thereof recognised under provisions
(509)
(519)
thereof recognised under net assets
(0)
(2)
At one Dutch company, plan assets exceeded the value of commitments as of the closing date.
Since the company cannot draw any economic benefits from this overfunding, the balance sheet
amount was reduced to €0 in line with IAS 19.64 (b).
The change in the asset ceiling was largely recognised directly in equity as a revaluation
effect of €−80 million (2018/19: revaluation effect of €−58 million) in other comprehensive
income.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
216
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The pension expenses of the direct and indirect company pension plan commitments can be
broken down as follows:
€ million
2018/19
2019/20
Current service cost1
21
28
Net interest expenses2
9
6
Past service cost (incl. curtailments and changes)
0
−10
Settlements
0
0
Other pension expenses
1
2
Pension expenses
31
26
1 Netted against employees’ contributions.
2 Included therein: interest effect from the adjustment of the asset ceiling.
The total gain to be recognised outside of profit or loss in the other comprehensive income
amounts to €1 million in financial year 2019/20. This figure is comprised of the effect from the
change in actuarial parameters in the amount of €33 million, experience-based adjustments of
€7 million and the return on plan assets of €41 million. It was offset by €80 million resulting from
the change in the effect of the asset ceiling in the Netherlands.
In addition, other comprehensive income includes an effect of €5 million resulting from
changes in actuarial parameters for the pension plans of the hypermarket business.
In addition to expenses from defined benefit commitments, expenses for payments to
external pension providers relating to defined contribution pension commitments of €78 million
in financial year 2019/20 (2018/19: €82 million) were recorded. These figures also include
payments to statutory pension insurance.
The provisions for obligations similar to pensions essentially comprise commitments from
employment anniversary allowances, death benefits and partial retirement plans. Provisions
amounting to €31 million (30/9/2019: €34 million) were allocated for these commitments. The
commitments are valued on the basis of actuarial expert opinions. The valuation parameters
used for this purpose are generally determined in the same way as for the company pension
plan.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
217
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

33. Other provisions (non-current) / provisions (current)
In the reporting period, other provisions (non-current)/provisions (current) changed as follows:
€ million
Real
estate-
related
obligations
Obligations
from trade
transactions
Restructuring
Taxes
Miscell-
aneous
Total
As of 1/10/20191
46
30
26
18
148
266
Currency translation
−1
−1
0
0
−3
−5
Addition
16
23
48
2
246
335
Reversal
−2
0
−8
0
−30
−40
Utilisation
−7
−18
−22
−1
−82
−131
Change in consolidation group
0
0
0
0
0
0
Interest portion of the
addition/change in interest rate
0
0
0
0
0
0
Transfer
0
2
0
−3
1
0
As of 30/9/2020
51
35
44
16
279
426
thereof non-current
21
0
0
13
105
139
thereof short-term
30
35
44
3
174
287
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
Provisions for real estate-related obligations primarily concern reinstatement obligations in the
amount of €22 million (30/9/2019: €15 million), dismantling and removing obligations in the
amount of €21 million (30/9/2019: €22 million) and rental commitments in the amount of
€6 million (30/9/2019: €7 million). The due date of the property-related provisions depends on
the remaining term of the lease agreements.
The most significant component of provisions for obligations from trade transactions are risks
from subsequent charges to suppliers. Supplementary components are provisions for warranties
amounting to €1 million (30/9/2019: €1 million).
The main components of the remaining provisions are provisions in the amount of €113 million
(30/9/2019: €0 million) relating to the disposals of subsidiaries, provisions for litigation costs/
risks in the amount of €48 million (30/9/2019: €48 million), the provisions for long-term
remuneration in the amount of €31 million (30/9/2019: €18 million) and provisions for guarantee
and warranty risks amounting to €11 million (30/9/2019: €18 million). The cash outflow estimate
for provisions for litigation costs/risks was based on the expected duration of litigation. The
provisions for long-term remuneration components are due in the years 2021 to 2023.
For more information about the long-term remuneration components, see no. 52 – long-term incentive for executives
page 266 .
Depending on the respective term and country, interest rates for non-interest-bearing, non-
current provisions range from 0.00% to 5.60%.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
218
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

34. Liabilities
Remaining term
Remaining term
€ million
30/9/
2019
Total1
up to
1 year
1 to
5 years
over
5 years
30/9/
2020
Total
up to
1 year
1 to
5 years
over
5 years
Trade liabilities
3,572
3,572
0
0
3,199
3,199
0
0
Bonds incl. commercial papers
2,301
531
1,122
648
2,082
310
1,722
50
Liabilities to banks
359
279
80
0
150
86
64
0
Promissory note loans
55
1
54
0
55
1
54
0
Liabilities from leases
3,215
353
1,511
1,351
3,027
376
1,344
1,307
Financial liabilities
5,930
1,164
2,767
1,999
5,314
773
3,185
1,357
Payroll liabilities
472
472
0
0
465
465
0
0
Liabilities from other financial
transactions
14
14
0
0
20
20
0
0
Miscellaneous other financial
liabilities
298
242
8
48
256
239
5
13
Other financial liabilities
783
728
8
48
741
724
5
13
Contract liabilities
35
35
0
0
193
99
94
0
Deferred income
35
10
7
17
32
8
8
16
Other tax liabilities
158
158
0
0
269
269
0
0
Miscellaneous other non-financial
liabilities
25
24
1
0
149
74
75
0
Other non-financial liabilities
253
228
8
17
644
451
177
16
Income tax liabilities
169
169
0
0
184
184
0
0
10,707
5,861
2,783
2,064
10,082
5,331
3,366
1,385
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
35. Trade liabilities
Trade liabilities declined by €373 million, from €3,572 million to €3,199 million.
Currency effects decreased trade payables by €184 million, which mainly resulted from the
Russian rouble (€65 million), the Turkish lira (€65 million) and the Ukrainian hryvnia
(€17 million). Furthermore, changes in payment terms and lower purchasing volumes had a
reducing effect on trade payables.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
219
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

36. Financial liabilities
The company’s medium-term and long-term financing needs are covered by an ongoing bond
programme with a maximum volume of €5 billion. On 20 January 2020, a due bond of
€125 million with a coupon of 4.05% was repaid on time. As of 30 September 2020, the utilised
bond issuance programme amounted to a total of €1,776 million .
Short-term financing requirements are covered through the Euro Commercial Paper
Programme with a maximum volume of €2 billion. On average, the programme was used at
€575 million during the reporting period. As of 30 September 2020, the utilisation amounted to
€295 million (30/9/2019: €387 million).
In addition, METRO has access to syndicated credit facilities totalling €1,750 million (30/9/
2019: €1,750 million) with terms ending between 2021 and 2024. If the credit facilities are used,
the interest rates range between Euribor +50.0 basis points (BP) and Euribor +55.0 BP. The
contract terms for the syndicated credit facilities provide for a decrease of 10 BP in the spread if
METRO’s credit rating is raised by one grade. In the event of a downgrade in METRO’s rating, the
margins increase by 25 BP.
In financial year 2019/20, a syndicated credit facility of €900 million as well as temporary
multi-year bilateral credit facilities of €200 million were drawn down. The syndicated credit
facility and the multi-year bilateral credit facilities were utilised because liquidity on the money
market was limited in the wake of the Covid-19 pandemic and short-term refinancing via
commercial papers was not ensured. All drawn credit facilities were repaid prior to maturity.
As of 30 September 2020, METRO had access to additional bilateral bank credit facilities
totalling €400 million (30/9/2019: €609 million), of which €86 million (30/9/2019: €279 million)
had a remaining term of up to one year. As of the closing date, €150 million (30/9/2019:
€359 million) of the bilateral credit facilities had been utilised. Of this amount, €86 million (30/
9/2019: €279 million) had a remaining term of up to one year. As of the closing date, there were
€250 million of free multi-year bilateral credit facilities available.
UNDRAWN CREDIT FACILITIES BY METRO
30/9/2019
30/9/2020
Remaining term
Remaining term
€ million
Total
up to
1 year
over
1 year
Total
up to
1 year
over
1 year
Bilateral credit facilities
609
279
330
400
86
314
Utilisation
−359
−279
−80
−150
−86
−64
Undrawn bilateral credit facilities
250
0
250
250
0
250
Syndicated credit facilities
1,750
0
1,750
1,750
900
850
Utilisation
0
0
0
0
0
0
Undrawn syndicated credit facilities
1,750
0
1,750
1,750
900
850
Total credit facilities
2,359
279
2,080
2,150
986
1,164
Total utilisation
−359
−279
−80
−150
−86
−64
Total undrawn credit facilities
2,000
0
2,000
2,000
900
1,100
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
220
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Default by a lender can be covered at any time by the existing undrawn credit facilities or the
available money and capital market programmes. METRO therefore does not bear any creditor
default risk.
METRO principally does not provide collateral for financial liabilities. One exception concerns
the first-time consolidation of METRO PROPERTIES GmbH & Co. KG as well as its subsidiaries in
2003. As of 30 September 2020, collateral securities in the amount of €10 million (30/9/2019:
€11 million) was provided for financial liabilities.
The following tables show the maturity structure of the financial liabilities. The carrying
amounts and fair values indicated include the interest accrued when the maturity is less than
one year.
BONDS INCL. COMMERCIAL PAPERS
30/9/2019
30/9/2020
Nominal
values
Nominal
values
Carrying
amounts
Fair
values
Nominal
values
Nominal
values
Carrying
amounts
Fair
values
Currency
Remaining
term
in million
currency
€ million
€ million
€ million
in million
currency
€ million
€ million
€ million
EUR
up to 1 year
512
512
531
–
295
295
310
–
1 to 5 years
1,126
1,126
1,122
–
1,726
1,726
1,722
–
over 5 years
650
650
648
–
50
50
50
–
2,288
2,288
2,301
2,375
2,071
2,071
2,082
2,117
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
221
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

LIABILITIES TO BANKS
(excl. current account)
30/9/2019
30/9/2020
Nominal
values
Nominal
values
Carrying
amounts
Fair
values
Nominal
values
Nominal
values
Carrying
amounts
Fair
values
Currency
Remaining
term
in million
currency
€ million
€ million
€ million
in million
currency
€ million
€ million
€ million
EUR
up to 1 year
183
183
184
–
2
2
2
–
1 to 5 years
12
12
12
–
9
9
9
–
over 5 years
0
0
0
–
0
0
0
–
195
195
196
197
11
11
11
11
PKR
up to 1 year
0
0
0
–
2,337
12
12
–
1 to 5 years
0
0
0
–
547
3
3
–
over 5 years
0
0
0
–
0
0
0
–
0
0
0
0
2,884
15
15
15
INR
up to 1 year
0
0
0
–
0
0
0
–
1 to 5 years
2,700
35
35
–
2,700
31
31
–
over 5 years
0
0
0
–
0
0
0
–
2,700
35
35
35
2,700
31
31
31
JPY
up to 1 year
625
5
5
–
1,600
13
13
–
1 to 5 years
1,600
14
14
–
0
0
0
–
over 5 years
0
0
0
–
0
0
0
–
2,225
19
19
19
1,600
13
13
13
MMK
up to 1 year
8,300
5
5
–
31,690
21
22
–
1 to 5 years
30,580
18
18
–
30,580
20
20
–
over 5 years
0
0
0
–
0
0
0
–
38,880
23
23
30
62,270
41
42
47
UAH
up to 1 year
260
10
10
–
0
0
0
–
1 to 5 years
0
0
0
–
0
0
0
–
over 5 years
0
0
0
–
0
0
0
–
260
10
10
10
0
0
0
0
PROMISSORY NOTE LOANS
30/9/2019
30/9/2020
Nominal
values
Nominal
values
Carrying
amounts
Fair
values
Nominal
values
Nominal
values
Carrying
amounts
Fair
values
Currency
Remaining
term
in million
currency
€ million
€ million
€ million
in million
currency
€ million
€ million
€ million
EUR
up to 1 year
0
0
1
–
0
0
1
–
1 to 5 years
54
54
54
–
54
54
54
–
over 5 years
0
0
0
–
0
0
0
–
54
54
55
61
54
54
55
58
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
222
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Redeemable loans that are reported under liabilities to banks are listed with the remaining terms
corresponding to their redemption date.
The following tables show the interest rate structure of the financial liabilities:
BONDS INCL. COMMERCIAL PAPERS
30/9/2019
30/9/2020
Interest terms
Currency
Remaining term
Nominal values
€ million
Nominal values
€ million
Fixed interest
EUR
up to 1 year
125
0
1 to 5 years
1,126
1,726
over 5 years
650
50
Variable interest
EUR
up to 1 year
387
295
1 to 5 years
0
0
over 5 years
0
0
LIABILITIES TO BANKS
(excl. current account)
30/9/2019
30/9/2020
Interest terms
Currency
Remaining term
Nominal values
€ million
Nominal values
€ million
Fixed interest
EUR
up to 1 year
183
2
1 to 5 years
12
9
over 5 years
0
0
PKR
up to 1 year
0
12
1 to 5 years
0
3
over 5 years
0
0
INR
up to 1 year
0
0
1 to 5 years
35
31
over 5 years
0
0
MMK
up to 1 year
5
21
1 to 5 years
18
20
over 5 years
0
0
UAH
up to 1 year
10
0
1 to 5 years
0
0
over 5 years
0
0
Variable interest
JPY
up to 1 year
5
13
1 to 5 years
14
0
over 5 years
0
0
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
223
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

PROMISSORY NOTE LOANS
30/9/2019
30/9/2020
Interest terms
Currency
Remaining term
Nominal values
€ million
Nominal values
€ million
Fixed interest
EUR
up to 1 year
0
0
1 to 5 years
54
54
over 5 years
0
0
Variable interest
EUR
up to 1 year
0
0
1 to 5 years
0
0
over 5 years
0
0
The fixed interest rate on short- and medium-term financial liabilities and the interest rate
adjustment dates of all fixed-interest financial liabilities are essentially the same as those shown.
The repricing dates for variable interest rates are less than one year.
The effects of interest rate changes in the variable share of financial liabilities on profit or loss for the period and the
equity of METRO are described in detail in no. 44 – management of financial risks
page 242 .
37. Other financial and other non-financial liabilities
Key items in the remaining miscellaneous other financial liabilities concern liabilities from the
acquisition of non-current assets of €82 million (30/9/2019: €100 million), liabilities from put
options of non-controlling shareholders in the amount of €35 million (30/9/2019: €50 million),
liabilities to customers of €40 million (30/9/2019: €49 million) as well as liabilities from real
estate totalling €5 million (30/9/2019: €2 million).
In addition, the remaining miscellaneous other financial liabilities also include numerous other
individual items.
Other tax liabilities include sales tax, land tax, wage and church tax as well as other taxes.
Deferred income includes accrued rental, leasing and interest income.
Contract liabilities are periodic accruals for sales to customers and mainly comprise accruals
for advance payments on orders and own customer loyalty programmes. Net sales realised in the
reporting period from contract liabilities existing at the beginning of the period amounted to
€29 million (30/9/2019: €27 million). Moreover, as part of the sale of the majority stake in
METRO China, a licence payment of €153 million received in advance for using the METRO brand
is recognised; the income realised from it over the period of use is reported in other operating
income. As permitted by IFRS 15, no information is provided on remaining benefit obligations
with an expected original term of 1 year or less as of 30 September 2020 or 30 September 2019.
Miscellaneous other non-financial liabilities also include advance payments of €120 million
(30/9/2019: €0 million) received from former subsidiaries for service capacities that were
created in the course of the disposal of the hypermarket business.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
224
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

30/9/20191
30/9/2020
Remaining term
Remaining term
€ million
Total
up to
1 year
over
1 year
Total
up to
1 year
over
1 year
Payroll liabilities
472
472
0
465
465
0
Miscellaneous other financial liabilities
311
256
55
276
259
17
Other financial liabilities
783
728
55
741
724
17
Other tax liabilities
158
158
0
269
269
0
Deferred income
35
10
25
32
8
24
Contract liabilities
35
35
0
193
99
94
Miscellaneous other non-financial
liabilities
25
24
1
149
74
75
Other non-financial liabilities
253
228
25
644
451
193
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
38. Offsetting financial assets and financial liabilities
Financial assets and financial liabilities that are subject to offsetting agreements, enforceable
master netting arrangements and similar agreements were as follows:
30/9/2019
(a)
(b)
(c) = (a) – (b)
(d)
(e) =
(c) – (d)
Gross amounts
of recognised
financial
assets/liabilities
Gross amounts
of recognised
financial
liabilities/assets
that are netted
in the
balance sheet
Net amounts
of financial
assets/liabilities
that are shown
in the
balance sheet
Corresponding amounts that
are not netted in the balance
sheet
€ million
Financial
instruments
Collateral
received/provided
Net
amount
Financial assets
Receivables due from
suppliers
462
146
316
36
0
280
Derivative financial
instruments
14
0
14
1
0
13
477
146
330
37
0
294
Financial liabilities
Trade liabilities
3,719
146
3,572
36
0
3,536
Derivative financial
instruments
12
0
12
1
0
11
3,730
146
3,584
37
0
3,547
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
225
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

30/9/2020
(a)
(b)
(c) = (a) – (b)
(d)
(e) =
(c) – (d)
Gross amounts
of recognised
financial
assets/liabilities
Gross amounts
of recognised
financial
liabilities/assets
that are netted
in the
balance sheet
Net amounts
of financial
assets/liabilities
that are shown
in the
balance sheet
Corresponding amounts that
are not netted in the balance
sheet
€ million
Financial
instruments
Collateral
received/provided
Net
amount
Financial assets
Receivables due from
suppliers
330
87
243
17
0
226
Derivative financial
instruments
9
0
9
2
0
6
339
87
252
20
0
232
Financial liabilities
Trade liabilities
3,286
87
3,199
17
0
3,182
Derivative financial
instruments
19
0
19
2
0
17
3,305
87
3,218
20
0
3,199
The amounts that are not netted in the balance sheet include both financial instruments and
collateral. The financial instruments that have not been netted could be netted based on the
underlying framework agreements, but do not fulfil the netting criteria of IAS 32 (Financial
Instruments: Presentation).
For more information about collateral, see no. 44 – management of financial risks
page 242 .
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
226
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

39. Undiscounted cash flows of financial liabilities
The undiscounted cash flows of financial liabilities, trade liabilities and derivative liabilities are as
follows:
Contractual cash flows
€ million
Carrying amount
30/9/20191
up to 1 year
1 to 5 years
over 5 years
Financial liabilities
Bonds incl. commercial papers
2,301
545
1,215
665
Liabilities to banks
359
279
80
0
Promissory note loans
55
2
59
0
Liabilities from leases
3,215
524
1,862
2,212
Trade liabilities
3,572
3,572
0
0
Other financial liabilities
783
728
8
48
Interest-based derivatives carried as
liabilities
0
0
0
0
Currency derivatives carried as liabilities
12
12
0
0
Commodity derivatives carried as
liabilities
0
0
0
0
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases). The contractual cash flows include interest and redemption components.
Contractual cash flows
€ million
Carrying amount
30/9/2020
up to 1 year
1 to 5 years
over 5 years
Financial liabilities
Bonds incl. commercial papers
2,082
324
1,797
54
Liabilities to banks
150
87
73
0
Promissory note loans
55
2
56
0
Liabilities from leases
3,027
533
1,781
1,798
Trade liabilities
3,199
3,199
0
0
Other financial liabilities
741
724
5
12
Interest-based derivatives carried as
liabilities
0
0
0
0
Currency derivatives carried as liabilities
19
19
0
0
Commodity derivatives carried as
liabilities
0
0
0
0
40. Carrying amounts and fair values according to measurement categories
The carrying amounts and fair values of recognised financial instruments are as follows:
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
227
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

30/9/20191
Balance sheet value
€ million
Carrying
amount
(Amortised)
cost
Fair value
through
profit
or loss
Fair value
recognised
in equity
without
reclass-
ification
Fair value
recognised
in equity
with reclass-
ification
Fair Value
Assets
17,830
n/a
n/a
n/a
n/a
n/a
Financial instruments measured at
amortised cost
1,108
1,108
0
0
0
1,117
Loans and advance credit granted
28
28
0
0
0
28
Receivables due from suppliers
316
316
0
0
0
316
Trade receivables
482
482
0
0
0
482
Miscellaneous financial instruments
281
281
0
0
0
290
Financial instruments measured at fair
value through profit or loss
78
0
78
0
0
78
Investments
62
0
62
0
0
62
Derivative financial instruments not in a
hedging relationship according to IAS 39
9
0
9
0
0
9
Securities
4
0
4
0
0
4
Loans and advance credit granted
4
0
4
0
0
4
Financial instruments measured at fair
value through other comprehensive
income
3
0
0
3
0
3
Investments
3
0
0
3
0
3
Derivative financial instruments in a
hedging relationship according to IAS 39
5
n/a
n/a
n/a
n/a
5
Cash and cash equivalents
500
500
0
0
0
500
Receivables from leases (amount
according to IFRS 16)
159
n/a
n/a
n/a
n/a
176
Assets not classified according to IFRS 7
15,976
n/a
n/a
n/a
n/a
n/a
Equity and liabilities
17,830
n/a
n/a
n/a
n/a
n/a
Financial instruments measured at fair
value through profit or loss
11
0
11
0
0
11
Derivative financial instruments not in a
hedging relationship according to
IAS 39
11
0
11
0
0
11
Liabilities measured at amortised cost
7,059
7,059
0
0
0
7,152
Borrowings excl. liabilities from leases
(incl. hedged items in hedging
relationships according to IAS 39)
2,715
2,715
0
0
0
2,804
Trade liabilities
3,572
3,572
0
0
0
3,572
Miscellaneous financial liabilities
771
771
0
0
0
776
Derivative financial instruments in a
hedging relationship according to IAS 39
1
n/a
n/a
n/a
n/a
1
Liabilities from leases (amount according
to IFRS 16)
3,215
n/a
n/a
n/a
n/a
n/a
Equity and liabilities not classified
according to IFRS 7
7,545
n/a
n/a
n/a
n/a
n/a
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
228
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

30/9/2020
Balance sheet value
€ million
Carrying
amount
(Amortised)
cost
Fair value
through
profit
or loss
Fair value
recognised
in equity
without
reclass-
ification
Fair value
recognised
in equity
with
reclass-
ification
Fair Value
Assets
13,192
n/a
n/a
n/a
n/a
n/a
Financial instruments measured at
amortised cost
939
939
0
0
0
939
Loans and advance credit granted
24
24
0
0
0
25
Receivables due from suppliers
243
243
0
0
0
243
Trade receivables
429
429
0
0
0
429
Miscellaneous financial instruments
242
242
0
0
0
242
Financial instruments measured at fair
value through profit or loss
82
0
82
0
0
82
Investments
67
0
67
0
0
67
Derivative financial instruments not in a
hedging relationship according to
IAS 39
7
0
7
0
0
7
Securities
3
0
3
0
0
3
Loans and advance credit granted
4
0
4
0
0
4
Miscellaneous financial instruments
2
0
2
0
0
2
Financial instruments measured at fair
value through other comprehensive
income
4
0
0
4
0
4
Investments
4
0
0
4
0
4
Securities
0
0
0
0
0
0
Derivative financial instruments in a
hedging relationship according to IAS 39
2
n/a
n/a
n/a
n/a
2
Cash and cash equivalents
1,525
1,525
0
0
0
1,525
Receivables from leases (amount
according to IFRS 16)
213
n/a
n/a
n/a
n/a
227
Assets not classified according to IFRS 7
10,428
n/a
n/a
n/a
n/a
n/a
Equity and liabilities
13,192
n/a
n/a
n/a
n/a
n/a
Financial instruments measured at fair
value through profit or loss
16
0
16
0
0
16
Derivative financial instruments not in a
hedging relationship according to
IAS 39
16
0
16
0
0
16
Financial instruments measured at
amortised cost
6,208
6,208
0
0
0
6,253
Borrowings excl. liabilities from leases
(incl. hedged items in hedging
relationships according to IAS 39)
2,287
2,287
0
0
0
2,331
Trade liabilities
3,199
3,199
0
0
0
3,199
Miscellaneous financial liabilities
722
722
0
0
0
722
Derivative financial instruments in a
hedging relationship according to IAS 39
3
n/a
n/a
n/a
n/a
3
Liabilities from leases (amount according
to IFRS 16)
3,027
n/a
n/a
n/a
n/a
n/a
Equity and liabilities not classified
according to IFRS 7
3,937
n/a
n/a
n/a
n/a
n/a
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
229
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Classes were formed based on similar risks for the respective financial instruments and
correspond to the categories of IFRS 9. Derivative financial instruments in a hedging relationship
according to IAS 39 and other financial liabilities are classified in each case to a separate class.
The fair value hierarchy comprises 3 levels which reflect the degree of closeness to the
market of the input parameters used in the determination of the fair values. In cases in which the
measurement is based on different input parameters, the fair value is attributed to the hierarchy
level corresponding to the input parameter of the lowest level that is significant for the
valuation.
Level 1 input parameters: quoted prices (that are adopted unchanged) in active markets for
identical assets or liabilities which the company can access at the valuation date.
Level 2 input parameters: other input parameters than the quoted prices included in level 1
which are either directly or indirectly observable for the asset or liability.
Level 3 input parameters: input parameters that are not observable for the asset or liability.
Of the total carrying amount of investments of €70 million (30/9/2019: €66 million),
€67 million (30/9/2019: €62 million) is recognised through profit or loss. This concerns off-
exchange financial instruments for which there is also no active market. The remaining
investments amounting to €4 million (30/9/2019: €3 million) are recognised at fair value in
equity. The classification (FVOCInR) was chosen because investments were made in these equity
instruments with a longer-term investment horizon.
In addition, securities totalling €3 million (30/9/2019: €4 million) are recognised through
profit or loss. These primarily concern highly liquid exchange-listed money market funds.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
230
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The following table depicts the financial instruments that are recognised at fair value in the
balance sheet. These are classified into a 3-level fair value hierarchy whose levels reflect the
degree of closeness to the market of the data used in the determination of the fair values:
30/9/2019
30/9/2020
€ million
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Assets
Financial assets measured at fair
value through profit or loss
Investments
62
0
62
0
67
0
67
0
Loans and advance credit
granted
4
0
4
0
4
0
4
0
Securities
4
0
4
0
3
0
3
0
Miscellaneous financial
instruments
0
0
0
0
2
0
0
2
Derivative financial instruments
not in a hedging relationship
according to IFRS 9
9
0
9
0
7
0
7
0
Derivative financial instruments
in a hedging relationship
according to IAS 39
5
0
5
0
2
0
2
0
Financial assets measured at fair
value through other
comprehensive income
Investments
3
0
3
0
4
0
4
0
Equity and liabilities
12
0
12
0
19
0
19
0
Financial liabilities measured at
fair value through profit or loss
Derivative financial instruments
not in a hedging relationship
according to IFRS 9
11
0
11
0
16
0
16
0
Miscellaneous financial
liabilities
0
0
0
0
0
0
0
0
Derivative financial instruments
in a hedging relationship
according to IAS 39
1
0
1
0
3
0
3
0
75
0
75
0
69
0
67
2
The measurement of securities (level 1) is carried out based on quoted market prices in active
markets.
Interest rate swaps and currency transactions (all level 2) are measured using the mark-to-
market method based on quoted exchange rates and market yield curves.
The measurement of investments (all stage 2) is based on comparable transactions in the
past.
No transfers between levels 1 and 2 were effected during the reporting period.
Financial instruments that are recognised at amortised cost in the balance sheet, but for
which the fair value is stated in the notes, are also classified according to a 3-level fair value
hierarchy.
Due to their mostly short terms, the fair values of receivables due from suppliers, trade
receivables and liabilities as well as cash and cash equivalents essentially correspond to their
carrying amounts.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
231
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The measurement of the fair value of bonds, liabilities to banks and promissory note loans is
based on the market interest rate curve following the discounted cash flow method in
consideration of credit spreads (level 2). The amounts comprise the interest prorated to the
closing date.
The fair values of all other financial assets and liabilities (level 2) that are not listed on an
exchange correspond to the present value of payments underlying these balance sheet items.
The calculation was based on the applicable country-specific yield curve (level 2) as of the
closing date. The remaining financial instrument (level 3) in the amount of €2 million was
calculated using the Black–Scholes option pricing model.
N O T E S
N O T E S  T O  T H E  B A L A N C E  S H E E T
232
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

OTHER NOTES
41. Notes to the cash flow statement
In accordance with IAS 7 (Statement of Cash Flows), the consolidated cash flow statement
describes changes in the group’s cash and cash equivalents through cash inflows and outflows
during the reporting period.
The item cash and cash equivalents includes cheques and cash on hand as well as cash in
transit and bank deposits with a remaining term of up to 3 months.
The cash flow statement distinguishes between changes in cash levels from operating,
investing and financing activities. Cash flows from discontinued operations are reported
separately where they concern discontinued operations.
Cash flows from discontinued operations concern the hypermarket business as well as
METRO China.
The following explanations relate to continuing operations.
Due to the Covid-19 pandemic, operating activities generated significantly lower cash flows of
€646 million in the reporting year (2018/19: €1.209 million). Depreciation/amortisation/
impairment losses are attributable to property, plant and equipment at €358 million (2018/19:
€362 million), to usufructuary rights at €315 million (2018/19: €288 million), to other intangible
assets at €132 million (2018/19: €113 million), to goodwill at €27 million (2018/19: €3 million) and
to investment properties at €25 million (2018/19: €15 million). This is contrasted by reversals of
impairment losses in the amount of €1 million (2018/19: €8 million).
The change in net working capital amounts to €−172 million (2018/19: €+27 million) and
includes changes in inventories, trade receivables and receivables due from suppliers, included
in the item ‘other financial assets’. Furthermore, it includes changes in trade liabilities. The
decrease in cash flows from changes in the net working capital is primarily due to the decrease
in trade payables, which is mainly related to a decrease in purchasing volume due to Covid-19.
Other operating activities resulted in a total cash outflow of €140 million (2018/19: cash
inflow of €53 million). This item includes other taxes, payroll liabilities, changes in other assets
and liabilities as well as deferred income and prepaid expenses. In addition, it includes changes
in the assets and liabilities held for sale, adjustments of unrealised currency effects and the
reclassification of deconsolidation results recognised in EBIT.
In the reporting period, investing activities led to cash outflow in the amount of €265 million
(2018/19: cash inflow of €46 million). The decline is mainly due to higher cash inflows from
divestments in the previous year, which mainly related to the sale of real estate.
The amount of investments in property, plant and equipment shown as cash outflows differs
from the additions shown in the asset reconciliation in the amount of non-cash transactions.
These essentially concern additions from usufructuary rights, currency effects and changes in
liabilities from the acquisition of miscellaneous other assets.
The financial investments comprise bank deposits with a residual term of more than 3 months
to 1 year, as well as near money market investments that are not classified as cash and cash
equivalents, such as units in money market funds. The balance of capital expenditure in financial
investments and the disposal of financial investments amounts to €−8 million (2018/19:
€−2 million).
N O T E S
O T H E R  N O T E S
233
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

In the reporting period, cash flow from financing activities totalled €1,280 million (2018/19:
cash outflow of €1.535 million).
The lease payments reported under cash flow from financing activities include the
redemption portion of €370 million (2018/19: €352 million) and the interest portion of
€177 million (2018/19: €188 million). The interest income received from leases (lessor) are
disclosed in cash flow from operating activities. They amount to €15 million (2018/19:
€16 million).
Cash and cash equivalents were subject to restrictions on title in the amount of €0 million
(2018/19: €0 million).
RECONCILIATION OF THE CASH FLOW FROM FINANCIAL LIABILITIES TO THE CHANGE IN FINANCIAL
LIABILITIES REPORTED IN THE BALANCE SHEET
€ million
30/9/
2018
Cash item
Additions
to finance
leases
Interest
expenses
Disposals
from
finance
leases
Reclass-
ification in
accordance
with IFRS 5
Exchange
rate
movements
30/9/
2019
Bonds incl. commercial
papers
2,920
−619
0
0
0
0
0
2,301
Liabilities to banks
383
−30
0
0
0
0
5
359
Promissory note loans
55
0
0
0
0
0
0
55
Liabilities from finance
leases1
3,439
−573
432
205
−44
−276
33
3,215
6,797
−1,222
432
205
−44
−276
38
5,930
1 According to IFRS 5, METRO China is still included in the development.
RECONCILIATION OF THE CASH FLOW FROM FINANCIAL LIABILITIES TO THE CHANGE IN FINANCIAL
LIABILITIES REPORTED IN THE BALANCE SHEET
€ million
30/9/
2019
Cash item
Additions
to finance
leases
Interest
expenses
Disposals
from
finance
leases
Reclass-
ification in
accordance
with IFRS 5
Exchange
rate
movements
30/9/
2020
Bonds incl. commercial
papers
2,301
−219
0
0
0
0
0
2,082
Liabilities to banks
359
−201
0
0
0
0
−7
150
Promissory note loans
55
0
0
0
0
0
0
55
Liabilities from finance
leases
3,215
−547
298
177
−80
6
−41
3,027
5,930
−968
298
177
−80
6
−48
5,314
N O T E S
O T H E R  N O T E S
234
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

42. Segment reporting
Segmentation follows the group’s internal reporting as it is used as a basis for resource
allocation and performance measurement by the Chief Operating Decision-Maker (member of
the Management Board of METRO AG).
METRO is active in the self-service wholesale trade with the brands METRO and MAKRO as
well as in the delivery business (FSD) with the METRO delivery service and, among others, with
the supply specialists Classic Fine Foods, Pro à Pro and Rungis Express. Operating segments are
aggregated to form reporting segments based on the division of the business into individual
regions. The individual regions are Germany, Western Europe (excluding Germany), Russia,
Eastern Europe (excluding Russia) and Asia.
The Others segment includes in particular Hospitality Digital, the business unit that bundles
the group’s digitalisation initiatives. It also includes the service companies METRO PROPERTIES,
METRO LOGISTICS, METRO-NOM, METRO ADVERTISING and METRO SOURCING and others,
which provide group-wide services in the areas of real estate, logistics, information technology,
advertising and procurement. METRO MARKETS is further expanding its digital portfolio for
independent restaurateurs with a new B2B online marketplace. Through this distribution channel,
METRO offers non-food articles from its own product range as well as products from third
parties. The sales and pro rata costs generated by METRO MARKETS are included in the
operating units, while the development activities of METRO MARKETS beyond it are included in
the Others segment.
The key components of segment reporting are as follows:
External sales represent sales of the operating segments to third parties outside the group.
Internal sales represent sales between the group’s operating segments. These transactions
are settled at normal market conditions.
Segment EBITDA comprises EBIT before depreciation and reversals of goodwill, impairment
losses of property, plant and equipment, other intangible assets and investment properties.
The adjusted EBITDA includes EBITDA excluding transformation costs and earnings
contributions from real estate transactions.
The term ‘transformation costs’ refers to non-recurring expenses related to efficiency
measures, which mainly relate to personnel measures in the headquarters.
The earnings contributions from real estate transactions include the EBITDA-effective
earnings from the disposal of land and land usage rights and/or buildings as part of a
disposal transaction. Earnings from the disposal of dedicated real estate companies or the
disposal of shares in such companies capitalised at equity are, as a result of their commercial
substance, also included in the earnings contributions from real estate transactions. The
earnings have been reduced by cost components incurred in relation to real estate
transactions.
EBIT is the key ratio for segment reporting and describes operating earnings for the period
before net financial result and income taxes. Intra-group rental contracts are shown as
operating leases in the segments. The rental takes place at normal market conditions. In
principle, impairment risks related to non-current assets are only shown in the segments
where they represent group risks. In analogy, this also applies to deferred assets and
liabilities, which are only shown at segment level if this was also required in the consolidated
balance sheet.
Segment investments include additions (including additions to the consolidation groups) to
goodwill, other intangible assets and property, plant and equipment and investment
properties. Exceptions to this are additions due to the reclassification of assets held for sale
as non-current assets.
N O T E S
O T H E R  N O T E S
235
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Non-current segment assets include non-current assets. They mainly exclude financial assets,
investments accounted for using the equity method, tax items, inventories, trade receivables,
receivables from suppliers and cash and cash equivalents.
In principle, transfers between segments are made based on the costs incurred from the
group’s perspective.
The reconciliation from non-current segment assets to non-current group assets is shown in the
following table:
€ million
30/9/20191
30/9/2020
Non-current segment assets
8,277
7,504
Financial assets
97
98
Investments accounted for using the equity method
179
421
Deferred tax assets
284
252
Other
1
2
Non-current group assets
8,838
8,277
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
43. Discontinued operations
Disposal of the hypermarket business
The Management Board of METRO AG decided in its meeting on 13 September 2018 to sell the
hypermarket business, including the real estate portfolio used in the hypermarket business and
owned by METRO. The decision was made with the intention to focus exclusively on wholesale
business in the future. In addition to all Real locations, the hypermarket business also includes
companies providing procurement and online services for Real as well as real estate and a
supplier. Together, the assets and liabilities have been treated as discontinued operations within
the meaning of IFRS 5 since September 2018. In February 2020, the notarised purchase contract
was concluded between METRO and SCP Group S.à r.l. for the disposal of the hypermarket
business and related properties. This transaction resulted in a total net cash inflow after taxes in
the amount of €0.3 billion. Tax payments on the sale will result in a cash outflow after the tax
return has been assessed.
In June 2020, the disposal of the hypermarket business and significant parts of the real estate
portfolio was completed. With the exception of a real estate company, the real estate properties
remaining in IFRS 5 as of 30 June 2020 were sold in September 2020 when the transaction was
completed. The transfer of the remaining property is expected in the first half of 2020/21. Until
the transaction is completed, the real estate company will be reported as assets and liabilities
held for sale (disposal group). As of 30 September 2020, €22 million is reported as assets held
for sale and €7 million as liabilities related to assets held for sale in connection with the
property.
N O T E S
O T H E R  N O T E S
236
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Profit or loss for the period after taxes
The current result of the hypermarket business, together with all related consolidation entries
recognised in the income statement, was shown in a separate section in the consolidated income
statement as profit or loss for the period from discontinued operations after taxes. To increase
the economic meaningfulness of the earnings statement of the continuing 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.
Until the deconsolidation date, the disposal group ‘hypermarket business’ was measured at
fair value based on an analysis of the purchase contract and the agreed purchase price
mechanism.
A detailed description of the fair value is included in no. 40 – carrying amounts and fair values according to
measurement categories
page 227 .
Profit or loss for the period from discontinued operations after taxes is attributable to the
shareholders of METRO AG in the amount of €−414 million (2018/19: €−216 million). Non-
controlling interests account for €0 million of earnings (2018/19: €1 million).
In connection with the divestment process, expenses in the low 2-digit million euro range
have been incurred.
As a result, profit or loss for the period from discontinued operations after taxes for the
hypermarket business is made up as follows:
€ million
2018/191
2019/202
Sales
6,700
5,246
Expenses
−6,644
−5,033
Current earnings from discontinued operations before taxes
56
214
Income taxes on gains/losses on the current result
−63
−1
Current earnings from discontinued operations after taxes
−7
213
Gains/losses from the remeasurement or disposal of discontinued operations
before taxes
−209
−598
Income taxes on measurement/disposal result
0
−29
Gains/losses from the remeasurement or disposal of discontinued operations
after taxes
−209
−627
Profit or loss for the period from discontinued operations after taxes
−216
−414
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
2 Until 24 June 2020 and 10 September 2020 respectively.
Effects of other comprehensive income
Of the other comprehensive income for financial year 2019/20 attributable to the shareholders
of METRO AG, €4 million (2018/19: €−8 million) is attributable to the discontinued operations of
the hypermarket business. This includes components that can be recognised as income in the
future in the amount of €0 million (2018/19: €0 million) and components that cannot be
recognised as income in the future in the amount of €4 million (2018/19: €−8 million).
N O T E S
O T H E R  N O T E S
237
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Assets/liabilities held for sale
As a result of the classification as discontinued operations and after consolidation measures up
to the date of deconsolidation were carried out, €2,955 million was recognised in the
consolidated balance sheet into the item assets held for sale and €2,608 million into the item
liabilities related to assets held for sale. The respective asset and liability items to be
consolidated were recognised in the corresponding balance sheet items of both the continuing
and the discontinued segment.
The assets and liabilities of the hypermarket business held for sale and disposed of as part of
the deconsolidation are comprised as follows:
ASSETS AT THE TIME OF DECONSOLIDATION
€ million
Non-current assets
1,576
Other intangible assets
43
Property, plant and equipment
1,468
Investment properties
13
Financial assets
37
Investments accounted for using the equity method
0
Other financial assets
4
Other non-financial assets
6
Deferred tax assets
5
Current assets
1,379
Inventories
688
Trade receivables
29
Financial assets
0
Other financial assets
358
Other non-financial assets
165
Entitlements to income tax refunds
0
Cash and cash equivalents
138
N O T E S
O T H E R  N O T E S
238
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

LIABILITIES AT THE TIME OF DECONSOLIDATION
€ million
Non-current liabilities
1,357
Provisions for post-employment benefits plans and similar obligations
9
Other provisions
46
Financial liabilities
1,287
Other financial liabilities
1
Other non-financial liabilities
14
Deferred tax liabilities
0
Current liabilities
1,251
Trade liabilities
751
Provisions
100
Financial liabilities
184
Other financial liabilities
119
Other non-financial liabilities
95
Income tax liabilities
2
Effects of other comprehensive income
In financial year 2019/20, METRO AG declared an assumption of debt for former (inactive)
employees of Real. The effects in connection with the assumed pension obligations in other
comprehensive income of €−10 million from the measurement of pension plans and €3 million of
the related income tax effects were transferred to METRO AG. As part of the deconsolidation of
the hypermarket business, the remaining effects of €−6 million from the measurement of
pension plans, the related income tax effects and the fair value measurement of investments
without reclassification, which were included in other comprehensive income, were reclassified
to other reserves retained from earnings.
Cash flow
The cash flows of the hypermarket business are as follows:
€ million
2018/191
2019/202
Cash flow from operating activities of discontinued operations
187
342
Cash flow from investing activities of discontinued operations
−135
162
Cash flow from financing activities of discontinued operations
−312
−268
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
2 Until 24 June 2020 and 10 September 2020 respectively.
Other disclosures
Prior to deconsolidation, the discontinued hypermarket business employed an average of 34,347
people (2018/19: 35,073).
Disposal of METRO China
On 11 October 2019, METRO AG entered into an agreement with Wumei Technology Group, a
leading Chinese retailer, to form a strategic partnership for the operations of METRO China and
related real estate. This partnership includes the sale of METRO AG’s entire indirect majority
N O T E S
O T H E R  N O T E S
239
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

shareholding in METRO China to a subsidiary of Wumei Technology Group for an enterprise
value (100%) of approximately €1.9 billion. The transaction was closed on 23 April 2020, after
receipt of the usual competitive and regulatory approvals, and resulted in a net cash inflow of
€1.6 billion, which included the advance payment for the use of the METRO trademark. METRO
will retain a stake of about 20% in the activities of METRO China.
Profit or loss for the period after taxes
The current result of METRO China was reclassified in the consolidated income statement under
the item profit or loss for the period from discontinued operations after taxes, taking into
account necessary consolidation measures. To increase the economic meaningfulness of the
earnings statement of the continuing 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.
Profit or loss for the period from discontinued operations after taxes is attributable to the
shareholders of METRO AG in the amount of €1,020 million (2018/19: €118 million). Non-
controlling interests account for €6 million of earnings (2018/19: €5 million).
In connection with the divestment process, expenses in the low 2-digit million euro range
have been incurred to date.
As a result, profit or loss for the period from discontinued operations after taxes is made up
as follows for METRO China:
€ million
2018/191
2019/202
Sales
2,902
1,764
Expenses
−2,737
−1,655
Current earnings from discontinued operations before taxes
165
109
Income taxes on gains/losses on the current result
−43
−26
Current earnings from discontinued operations after taxes
122
83
Gains/losses from the remeasurement or disposal of discontinued operations
before taxes
0
1,125
Income taxes on measurement/disposal result
0
−182
Gains/losses from the remeasurement or disposal of discontinued operations
after taxes
0
943
Profit or loss for the period from discontinued operations after taxes
122
1,026
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
2 Until 22 April 2020
Effects of other comprehensive income
Of the other comprehensive income for financial year 2019/20 attributable to the shareholders
of METRO AG, €9 million (2018/19: €14 million) is attributable to the discontinued operations of
METRO China. This includes components that can be recognised in income in the future in the
amount of €9 million (2018/19: €14 million) and components that cannot be recognised in
income in the future in the amount of €0 million (2018/19: €0 million).
N O T E S
O T H E R  N O T E S
240
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Assets/liabilities held for sale
As a result of the classification as discontinued operations and after consolidation measures up
to the date of deconsolidation were carried out, €1,775 million was reclassified in the
consolidated balance sheet into the item assets held for sale and €1,024 million into the item
liabilities related to assets held for sale. The respective asset and liability items to be
consolidated were recognised in the corresponding balance sheet items of both the continuing
and the discontinued segment.
The assets and liabilities of METRO China held for sale and disposed of as part of the
deconsolidation are comprised as follows:
ASSETS AT THE TIME OF DECONSOLIDATION
€ million
Non-current assets
865
Goodwill
19
Other intangible assets
5
Property, plant and equipment
783
Deferred tax assets
57
Current assets
911
Inventories
205
Trade receivables
75
Other financial assets
74
Other non-financial assets
93
Entitlements to income tax refunds
0
Cash and cash equivalents
464
LIABILITIES AT THE TIME OF DECONSOLIDATION
€ million
Non-current liabilities
276
Financial liabilities
269
Deferred tax liabilities
7
Current liabilities
748
Trade liabilities
530
Provisions
43
Financial liabilities
10
Other financial liabilities
34
Other non-financial liabilities
130
Income tax liabilities
2
Effects of other comprehensive income
The components included in the equity of METRO China up to the deconsolidation date, which
are part of the other comprehensive income attributable to the shareholders of METRO AG from
currency translation differences, had an effect of €23 million on net income from disposals due
to their derecognition through profit or loss.
N O T E S
O T H E R  N O T E S
241
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Cash flow
The cash flows of METRO China from discontinued operations are as follows:
€ million
2018/191
2019/202
Cash flow from operating activities of discontinued operations
212
74
Cash flow from investing activities of discontinued operations
0
1,109
Cash flow from financing activities of discontinued operations
−39
−9
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
2 Until 22 April 2020
Other disclosures
Prior to deconsolidation, the discontinued operation of METRO China employed an average of
11,863 people (2018/19: 11,836).
44. Management of financial risks
METRO Treasury manages the financial risks of the group. Specifically, they concern
Price risks
Liquidity risks
Credit risks
Cash flow risks
For more information about the risk management system, see chapter – 3 economic report – 3.2. asset, financial and
earnings position – financial and asset position – financial management
page 67 in the combined management
report.
Price risks
For METRO, price risks result from the impact of changes in market interest rates and foreign
currency exchange rates on the value of financial instruments.
Interest rate risks can arise for METRO from changes in interest rate levels. If necessary,
interest rate derivatives are used to cap these risks.
The remaining interest rate risk is assessed in accordance with IFRS 7 using a sensitivity
analysis. In the process, the following assumptions are applied in the consideration of changes in
interest rates:
The total impact determined by the sensitivity analysis relates to the actual balance as of the
closing date and reflects the impact for 1 year.
Primary floating-rate financial instruments whose interest payments are not designated as the
underlying transaction in a cash flow hedge against changes in interest rates are recognised
in the interest result in the sensitivity analysis. The sensitivity is determined for a change of 10
basis points.
N O T E S
O T H E R  N O T E S
242
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Primary fixed-interest financial instruments are generally not recognised in the interest result.
They are only recognised in other financial result if they are designated as the underlying
transaction within a fair value hedge and measured at fair value. In this case, however, the
interest-related change in the value of the underlying transaction is offset by the change in
the value of the hedging transaction upon full effectiveness of the hedging transaction. The
variable interest flows within the group that result from a fair value hedge are recognised in
the interest result.
Financial instruments designated as the hedging transaction within a cash flow hedge to
hedge against variable interest flows will only be recognised in the interest result when the
payment flows have actually been initiated. However, the measurement of the hedging
transaction at fair value is recognised in reserves retained from earnings outside of profit or
loss.
Interest rate derivatives that are not part of a qualified hedging relationship under IAS 39 are
recognised at fair value in profit or loss in other financial result and, through resulting interest
flows, in the interest result.
As of the closing date, METRO’s remaining interest rate risk is primarily the result of variable
interest rate receivables and liabilities to banks as well as other short-term liquid financial assets
(reported under cash and cash equivalents) with an aggregate debit balance after consideration
of hedging transactions of €1,160 million (30/9/2019: €−1 million).
Given this total balance, an interest rate rise of 10 basis points would result in a
€1 million (2018/19: €0 million) higher interest result per year. An interest rate decrease of 10
basis points would have the opposite effect of €−1 million (2018/19: €0 million).
METRO faces currency risks in its international procurement of merchandise and because of
costs, financings and lease agreements that are incurred in a currency other than the relevant
local currency or are pegged to the development of another currency. In accordance with the
specifications of the group guideline ‘Foreign Currency Transactions’, resulting foreign currency
positions must be hedged. Exceptions from this hedging requirement exist where hedging is not
economically reasonable and in the case of legal and regulatory restrictions in the respective
countries. Forward currency contracts are mainly used for hedging purposes. Moreover, currency
risks for METRO result from the recognition of foreign currency lease liabilities and foreign
currency lease receivables, which affect the amount of the other financial result due to the
exchange rate at closing date.
In line with IFRS 7, the presentation of the currency risk resulting from the exceptions is also
based on a sensitivity analysis. In the process, the following assumptions are made in the
consideration of a depreciation or appreciation of the euro vis-à-vis foreign currencies:
In terms of its amount and result characteristic, the total effect presented by the sensitivity
analysis relates to the amounts of foreign currency held within the consolidated subsidiaries of
METRO and states the effect of a depreciation of the euro.
A depreciation of the euro will result in a positive effect if a receivable in the foreign currency
exists at a subsidiary which uses the euro as its functional currency and if a liability in euros
exists at a subsidiary which does not use the euro as its functional currency. The following table
shows the nominal volumes of currency pairs in this category with a positive sign.
A depreciation of the euro will result in a negative effect if a receivable in euros exists at a
subsidiary which does not use the euro as its functional currency and if a liability in the foreign
currency exists at a subsidiary which uses the euro as its functional currency. Correspondingly,
the following table shows the nominal volumes of currency pairs in this category with a negative
sign.
By contrast, an appreciation of the euro will have the opposite effect for all currency pairs
shown above.
N O T E S
O T H E R  N O T E S
243
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

In the sensitivity analysis, the effects of the measurement of non-equity foreign currency
positions that are calculated based on the exchange rate at closing date in line with IAS 21 are
recognised in the income statement. In the case of net investments in a foreign operation, the
effects of the closing date measurement are recognised in equity (other comprehensive income)
outside of profit or loss.
Forward currency contracts/options and interest rate and currency swaps that are not part of
a qualified hedging relationship under IAS 39 are recognised through the fair value measurement
in the income statement. In fully effective hedging transactions, this effect is offset by the effect
from the measurement of the underlying foreign currency transaction.
In the consolidated financial statements, foreign currency future transactions are designated
as hedging transactions within a cash flow hedge to hedge merchandise procurement and sales.
Changes in the fair value of these hedging instruments are recognised in other comprehensive
income until the underlying transaction is recognised through profit or loss.
Effects from the currency translation of financial statements whose functional currency is not
the reporting currency of METRO do not affect cash flows in local currency and are therefore not
part of the sensitivity analysis.
As of the closing date, the remaining currency risk of METRO, which is essentially due to an
inability to hedge certain currencies for legal reasons or due to insufficient market depth, was as
follows:
N O T E S
O T H E R  N O T E S
244
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Impact of depreciation of the euro by 10 %
€ million
Currency pair
Volume1
30/9/20191
Volume
30/9/2020
Profit or loss for the
period
+/−
+/−
CHF/EUR
+10
−1
+12
−1
CNY/EUR
+17
−2
+28
−3
CZK/EUR
+59
−6
+87
−9
EGP/EUR
+31
−3
+32
−3
GBP/EUR
−8
1
+0
0
HKD/EUR
−17
2
−8
1
HUF/EUR
+42
−4
−5
1
JPY/EUR
−7
1
−5
0
KZT/EUR
+12
−1
+14
−1
PLN/EUR
+192
−19
+94
−9
PKR/EUR
+11
−1
+9
−1
RON/EUR
−15
2
+15
−1
RSD/EUR
+10
−1
+8
−1
RUB/EUR
+66
−7
−36
4
TRY/EUR
+116
−12
+80
−8
UAH/EUR
+43
−4
+57
−6
USD/EUR
+5
−1
0
0
Equity
+/−
+/−
CNY/EUR
+103
−10
+100
−10
KZT/EUR
+126
−13
+130
−13
PLN/EUR
+70
−7
+67
−7
RSD/EUR
+16
−2
+16
−2
RUB/EUR
0
0
0
0
UAH/EUR
+200
−20
+200
−20
USD/EUR
+90
−9
+74
−7
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
Currency risks existing in addition to these are mainly the result of USD currency holdings in
various subsidiaries in which the functional currency is not the US dollar or the euro. At a
nominal US dollar volume of €19 million (30/9/2019: €21 million), a depreciation of the US dollar
by 10% would result in positive effects of €2 million in profit or loss for the period (30/9/2019:
€2 million), while an appreciation would lead to negative effects of €2 million (30/9/2019:
€2 million).
At a nominal volume of €6 million (30/9/2019: €8 million), the currency pair USD/THB
accounts for the main share of this effect, while in the previous year the currency pair USD/AED
accounted for the largest share of this effect.
Interest rate and currency risks are substantially reduced and limited by the internal treasury
guidelines. The group wide regulations specify that all hedging operations must adhere to
predefined limits and must not lead to increased risk exposure under any circumstances.
METRO is aware that this severely limits the opportunities to exploit current or expected interest
rate and exchange rate movements to optimise results.
N O T E S
O T H E R  N O T E S
245
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

In addition, hedging may be carried out only with standard derivative financial instruments
whose correct mathematical measurement and accounting mapping are guaranteed.
As of the closing date, the following derivative financial instruments were being used for risk
reduction:
30/9/2019
30/9/2020
Fair values
Fair values
€ million
Nominal
volume1
Financial
assets
Financial
liabilities
Nominal
volume1
Financial
assets
Financial
liabilities
Currency transactions
Forward currency contracts
605
14
12
678
9
19
thereof within fair value hedges
(0)
(0)
(0)
(0)
(0)
(0)
thereof within cash flow hedges
(193)
(5)
(1)
(173)
(2)
(3)
thereof not part of hedges
(412)
(9)
(11)
(505)
(7)
(16)
Interest rate/currency swaps
0
0
0
0
0
0
605
14
12
678
9
19
1 Nominal volumes with a positive prefix indicate a purchase of forward currency contracts.
Nominal volumes with a negative prefix indicate a disposal of forward currency contracts.
The nominal volume of forward currency contracts /options and interest limitation agreements
results from the net position of the buying and selling values in foreign currency underlying the
individual transactions translated at the relevant exchange rate on the closing date. The nominal
volume of interest rate swaps or interest rate/currency swaps and interest rate hedging
agreements is shown on a gross basis.
All fair values represent the theoretical value of these instruments upon dissolution of the
transaction as of the closing date. Under the premise that instruments are held until the end of
their term, these are unrealised gains and losses that, by the end of the term, will be fully set off
by gains and losses from the underlying transactions in the case of fully effective hedging
transactions.
In order to appropriately show this reconciliation for the period, relationships are created
between hedging transactions and underlying transactions and recognised as follows:
Within a fair value hedge, both the hedging transaction and the hedged risk of the underlying
transaction are recognised at their fair value. The fluctuations in the fair value of both
transactions are shown in the income statement, where they will be fully set off against each
other in the case of full effectiveness.
Within a cash flow hedge, the hedging transactions are also principally recognised at their fair
value. In the case of full effectiveness of the hedging transaction, the value changes will be
recognised in equity until the hedged payment flows or expected transactions impact the
earnings. Only then will they be recognised in the income statement.
Hedging transactions that, according to IAS 39, are not part of a hedge are recognised at
their fair value. Value changes are recognised directly in the income statement. Even if no
formal hedging relationship was created, these are hedging transactions that are closely
connected to the underlying transaction and whose impact on earnings will be netted by the
underlying transaction.
N O T E S
O T H E R  N O T E S
246
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Only derivatives in the form of forward exchange transactions are used as hedging instruments
in hedge accounting (cash flow hedging) to hedge off-balance sheet currency risks. Generally,
one underlying transaction is hedged in each case by means of a forward currency contract. The
effectiveness of these hedges is assessed on the basis of the hypothetical derivative method.
The ineffectiveness determined using this method results from the difference between the
changes in value of the hedged item and the changes in value of the hedging transaction.
Currency derivatives are used primarily for Chinese renminbi, Hong Kong dollar, Japanese
yen, Polish zloty, Romanian leu, Russian rouble, Swiss franc, Czech koruna, Hungarian forint and
US dollar. The average hedging rates for METRO for the 2 particularly important currency pairs
resulting from such hedges are as follows:
1.14 USD/EUR and 8.13 CNY/EUR. The maturity of derivatives used for hedging purposes in
the amount of €−1 million (30/9/2019: €5 million) is less than one year.
Liquidity risks
Liquidity risk describes the risk of being unable to procure or provide funding or being able to
only procure or provide funding at a higher cost. Liquidity risks may arise, for example, as a
result of temporary capital market disruptions, creditor defaults, insufficient credit facilities or
the absence of budgeted incoming payments. METRO AG acts as financial coordinator for the
group companies to ensure that they are provided with the necessary financing to fund their
operating and investing activities as cost-effectively and sufficiently high as possible. The
necessary information is provided by means of a group financial plan, which is updated monthly
and checked monthly for deviations. This financial plan is complemented by a weekly rolling
14-day liquidity plan.
Financing instruments include money and capital market products (time deposits, call money,
promissory note loans, commercial papers and listed bonds sold as part of ongoing capital
market programmes) as well as bilateral and syndicated loans. METRO has a sufficient liquidity
reserve so that liquidity risks are not likely, even if an unexpected event has a negative financial
impact on the company’s liquidity situation. The unused bilateral syndicated loans held as a
liquidity reserve are subject to certain loan conditions. In the event that, contrary to
expectations, the agreed credit terms cannot be met in the future due to Covid-19 and no
temporary adjustment of the credit terms can be negotiated with the bank consortium, METRO
has sufficient refinancing alternatives available with a similar liquidity effect. For more
information about the instruments used for financing purposes, see the explanatory notes to the
respective balance sheet items.
For more information, see no. 29 – cash and cash equivalents
page 205 as well as no. 36 – financial liabilities
page 220 .
N O T E S
O T H E R  N O T E S
247
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Through intra-group cash pooling, financial resources can be allocated as needed by group
companies with financing needs using the liquidity surpluses of other group companies. This
reduces the group’s amount of debt and thus its interest expenses. In addition, METRO AG
draws on the financial expertise pooled in the treasury of METRO AG to advise the group
companies in all relevant financial matters. This ranges from the elaboration of investment
financing concepts to supporting the responsible financial officers of the individual group
companies in their discussions with local banks and financial service providers. This ensures, on
the one hand, that the financial resources of METRO are optimally employed, and, on the other,
that all group companies benefit from the strength and credit standing of METRO in negotiating
their financing terms.
Credit risks
Credit risks arise from the total or partial default by a counterparty, for example, through
bankruptcy or in connection with financial investments and derivative financial instruments with
positive market values. METRO’S maximum credit risk as of the closing date is reflected by the
carrying amount of financial assets totalling €2,764 million (30/9/2019: €1,854 million).
For more information about the amount of the respective carrying amounts, see no. 40 – carrying amounts and fair
values according to measurement categories
page 227 .
Cash on hand considered in cash and cash equivalents totalling €14 million (30/9/2019:
€16 million) is not exposed to any credit risk.
In the course of the risk management of financial investments totalling €1,482 million (30/9/
2019: €453 million) and derivative financial instruments with positive market values totalling
€9 million (30/9/2019: €14 million), minimum creditworthiness requirements and individual
maximum exposure limits for the engagement have been defined for all business partners of
METRO. Cheques and money in circulation are not considered in the determination of credit
risks. This is based on a system of limits laid down in the treasury guidelines, which are based
mainly on the ratings of international rating agencies, developments of credit default swaps or
internal credit assessments. An individual limit is allocated to every counterparty of METRO;
compliance is constantly monitored by the treasury systems.
N O T E S
O T H E R  N O T E S
248
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The following table shows a breakdown of business partners by rating class:
Rating classes
Volume in %
Financial investments
Grade
Standard &
Poor’s
Moody’s
Germany
Western
Europe
(excl.
Germany)
Russia
Eastern
Europe
(excl.
Russia)
Asia and
others
Derivatives
with
positive
market
values
Total
Investment-
grade
AAA
Aaa
0.0
0.0
0.0
0.0
0.0
0.0
AA+ to AA-
Aa1 to Aa3
0.8
0.0
0.0
0.0
0.0
0.0
A+ to A-
A1 to A3
57.4
1.1
0.8
4.5
6.5
0.3
BBB+ to
BBB-
Baa1 to
Baa3
21.2
0.9
0.0
2.8
1.1
0.1
97.5
Non-
Investment-
grade
BB+ to BB-
Ba1 to Ba3
0.0
0.0
0.0
0.0
0.0
0.0
B+ to B-
B1 to B3
0.0
0.1
0.0
0.0
0.0
0.0
CCC+ to C
Caa1 to Ca
0.1
0.0
0.0
1.7
0.0
0.0
1.9
No rating
0.0
0.0
0.0
0.6
0.0
0.0
0.6
79.5
2.1
0.8
9.6
7.6
0.4
100.0
The table shows that, as of the closing date, about 97.5% of the capital investment volume,
including the positive market value of derivatives, had been placed with investment grade
counterparties, in other words, those with good or very good credit ratings. Most of the
counterparties that do not yet have an internationally accepted rating are respected financial
institutions that have been subjected to a creditworthiness analysis. METRO also operates in
countries where local financial institutions do not have investment grade ratings due to the
rating of their country. For country-specific reasons as well as cost and efficiency considerations,
cooperation with these institutions is unavoidable. These institutions account for about 1.9% of
the total volume.
Overall, METRO’s level of exposure to credit risks is very low.
Cash flow risks
A future change in interest rates may cause cash flow from variable interest rate asset and
liability items to fluctuate. Stress tests are used to determine the potential impact interest rate
changes may have on cash flow and how they can be capped through hedging transactions in
accordance with the group’s internal treasury guidelines.
N O T E S
O T H E R  N O T E S
249
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

45. Contingent liabilities
€ million
30/9/2019
30/9/2020
Contingent liabilities from guarantee and warranty contracts
17
39
Contingent liabilities from the provision of collateral for third-party liabilities
12
10
Other contingent liabilities
1
0
30
49
Contingent liabilities from guarantee and warranty contracts are primarily rent guarantees with
terms of up to 10 years if utilisation is not considered entirely unlikely. The present values of
contingent liabilities are essentially the same as the nominal amounts. Some of the contingent
liabilities are subject to rights of recourse against third parties up to the nominal amount.
46. Other financial commitments
As of 30 September 2020, the nominal value of other financial commitments amounted to
€241 million (30/9/2019: €232 million) and primarily concerned purchasing commitments from
service agreements.
For more information about contractual commitments for the acquisition of other intangible assets and property,
plant and equipment as well as investment properties, see no. 20 – other intangible assets
page 188 , no. 21 –
property, plant and equipment
page 189 and no. 22 – investment properties
page 192 as well as no. 47 – leases
page 250 .
47. Leases
METRO as lessee
Real estate leases
METRO mainly rents land and buildings for its wholesale stores, distribution centres, offices and
warehouses. The leases are individually negotiated and contain a variety of different terms and
conditions.
The lease agreements for the properties are generally concluded for fixed periods of 5 to 15
years and in some cases include extension options, as described in the section on extension and
termination options.
Vehicle leasing
In addition, commercial vehicles such as trucks, forklift trucks and industrial trucks with terms of
4 to 6 years as well as passenger cars with a lease term of 3 to 4 years are also leased.
Other leases
Other leases, which account for an insignificant portion of the leases, include the rental of
technical equipment and machinery, IT infrastructure as well as business and office equipment.
With the first-time application of IFRS 16, the previous classification of leases under IAS 17 as
operating or finance leases no longer applies to lessees. Nearly all leases (with the exception of
N O T E S
O T H E R  N O T E S
250
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

short-term leases and leases based on low-value assets) are disclosed in the balance sheet as
rights of use with a corresponding lease liability.
Additional information about the first-time application of the new accounting standard and on exercising options
can be found in the section ‘Application of new accounting methods
page 151 ’.
The following table shows the rights of use in connection with leases reported in the balance
sheet.
€ million
1/10/20181
30/9/20191
30/9/2020
Land and buildings
2,524
2,248
1,947
Vehicles
88
95
103
Other rights of use
20
32
34
2,633
2,374
2,084
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
A detailed presentation of the rights of use can be found in no. 21. – property, plant and equipment
page 189 –
development of rights of use of leased property, plant and equipment.
The maturities of lease liabilities are shown in the following table.
€ million
1/10/20181
30/9/20191
30/9/2020
Short-term
397
353
376
Long-term
3,042
2,862
2,651
3,439
3,215
3,027
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
A maturity analysis of the undiscounted payments can be found in no. 39 – undiscounted cash flows of financial
liabilities
page 227 .
In financial year 2019/20, there were no material expenses for variable lease payments that were
not included in the measurement of lease liabilities.
Effects of leases recognised in profit or loss
The following expenses and income relating to leases were reported in the income statement.
N O T E S
O T H E R  N O T E S
251
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

€ million
30/9/20191
30/9/2020
Variable rental expenses from rights of use
0
−2
Rental expenses for short-term leases
−14
−14
Rental expenses for leases of assets of minor value
−28
−9
Total rental expenses
−42
−25
Depreciation2
−301
−333
Interest expenses
−188
−177
Income and expenses from sale and leaseback transactions
286
1
Income from subletting of rights of use
136
118
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
2 Includes depreciation on investment property and impairment losses.
The total cash outflow, which comprises fixed lease payments, payments for short-term leases,
payments for leases of assets of minor value and variable lease payments, amounts to
€564 million (30/9/2019: €594 million).
In its announcement ‘Covid-19-Related Rent Concessions’ (amendment to IFRS 16) on 28 May
2020, the IASB grants lessees an option to simplify the accounting for concessions, such as
deferral of lease payments or rent discounts, granted in connection with the outbreak of the
coronavirus pandemic. METRO has exercised the option of recognising all granted rental
discounts amounting to €1 million directly in the income statement.
Extension and termination options
Extension and termination options are included in a significant number of leases in all asset
classes of METRO. These terms and conditions are used to maximise operational flexibility in
contract management, particularly in relation to the asset classes of land and buildings, plant
and machinery, vehicles as well as IT infrastructure.
When METRO determines the lease term and assesses the length of the non-cancellable
period of a lease, it specifies the period for which the agreement is enforceable. A lease
agreement is no longer enforceable if the lessee and the lessor each have the right to terminate
the lease agreement without the other party’s consent for at most an insignificant penalty. If
only a lessee has the right to terminate a lease, that right is considered a termination option
available to the lessee, which a company considers when determining the lease term. If only a
lessor has the right to terminate a lease, the non-cancellable period of the lease includes the
period covered by the termination option. The majority of the renewal and termination options
held can only be exercised by METRO and not by the respective lessor.
In determining the lease term, management takes into account all facts and circumstances
that create an economic incentive to exercise a renewal option or not to exercise a termination
option. Examples of facts and circumstances include the terms of the lease for the optional
periods compared to market conditions, significant improvements to the leases, costs associated
with terminating the lease contract and the significance of the underlying asset to METRO’s
operations. The measurement is reviewed if a significant event or significant change in
circumstances occurs that affects this measurement.
Potential future cash outflows of €2,054 million (30/9/2019: €1,985 million) for renewal or
termination options that are not sufficiently certain were not included in the lease liability as of
30 September 2020 because it is not reasonably certain that the leases will be renewed or not
terminated.
N O T E S
O T H E R  N O T E S
252
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

During the financial year, lease extensions totalling €70 million (30/9/2019: €69 million) were
exercised and included in lease liabilities using the incremental borrowing rate at the
modification date of this lease.
Residual value guarantees and purchase options
METRO has no significant leases that contain residual value guarantees or purchase options.
Leasing agreements not yet commenced
Undiscounted payment obligations for leases that had not yet been commenced on the closing
date and were thus not disclosed under lease liabilities totalled €6 million (30/9/2019:
€54 million).
Sale-and-leaseback transactions
No significant sale-and-leaseback transactions were carried out in financial year 2019/20. In the
previous year, profits of €286 million were generated from the sale of property locations in
China, Poland, Spain, Hungary and the Czech Republic.
METRO as lessor
METRO is a lessor that rents and leases real estate owned by the company. These subleases are
classified as operating leases or finance leases. The net investments from the finance leases are
recognised as receivables in the balance sheet. The receivables are reduced by the redemption
portion included in the lease payment. The interest portion included in the lease payment is
recognised as finance income in the income statement.
Lease payments (METRO as lessor) due in subsequent periods from entities outside
METRO for the rental of properties that are classified as finance leases are shown below:
€ million
30/9/20191
30/9/2020
Up to 1 year
38
59
1 to 2 years
39
58
2 to 3 years
38
54
3 to 4 years
39
37
4 to 5 years
25
20
Over 5 years
29
40
Gross investment (total undiscounted minimum lease payments)
208
268
Not yet realised financial income
−48
−47
Net investment (net present value of future minimum lease payments to be
received)
159
221
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
N O T E S
O T H E R  N O T E S
253
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

The material increase in net investments from finance leases results from the subleasing of real
estate locations to the hypermarket business, which led to a reclassification as finance leases
due to the disposal of the hypermarket business.
If the rental of real estate is classified as an operating lease, the lease payments are
immediately recognised in the income statement as rental income. In subsequent periods, the
group is entitled to receive lease payments from third parties, which are due as follows:
€ million
30/9/20191
30/9/2020
Up to 1 year
90
94
1 to 2 years
78
75
2 to 3 years
71
63
3 to 4 years
64
44
4 to 5 years
47
30
Over 5 years
97
53
Total undiscounted minimum lease payments
447
360
1 Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).
The following rental income in connection with leases was recognised in the income statement.
€ million
30/9/2019
30/9/2020
Operating leases
Fixed rental income
144
117
Variable rental income
1
0
Finance leases
Variable rental income
1
1
Total rental income
145
118
Interest income
16
15
N O T E S
O T H E R  N O T E S
254
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

48. Adjustment of comparative figures for 2018/19 due to IFRS 16
The International Accounting Standards Board published the new accounting standard IFRS 16
(Leases). IFRS 16 replaces the existing lease regulations, including IAS 17 (Leases), IFRIC 4
(Determining Whether an Agreement Contains a Lease), SIC-15 (Operating Leases – Incentives)
and SIC-27 (Evaluating the Substance of Transactions in the Legal Form of a Lease) .
METRO has made the first-time application of IFRS 16 fully retrospective to 30 September
2019 (financial year 1/10/2018 to 30/9/2019). As a result, previous year’s figures have been
adjusted for financial year 2018/19. The effects on the income statement, the balance sheet, the
statement of comprehensive income and the cash flow statement are presented below.
The key change of IFRS 16 compared to IAS 17 is the introduction of a uniform accounting model for
the lessee. The lessee must recognise a liability and, correspondingly, the right to use the leased asset as
a right-of-use asset at the time when the lessor grants the lessee the right to use the asset.
The rental expenses from operating leases previously reported in the income statement in
accordance with IAS 17 have been replaced by the disclosure of depreciation and interest
expenses in accordance with IFRS 16.
For the transition to IFRS 16, METRO determines whether an agreement contains a lease. For this
assessment, the company was allowed to choose whether to apply the IFRS 16 definition of a lease to all
its agreements or to apply the practical simplification allowed by IFRS 16 instead of reassessing whether
an agreement is or contains a lease. The company decided to apply the practical simplification during
the transition. This means that it will apply IFRS 16 to all contracts entered into before 1 October 2018
and identified as leases in accordance with IAS 17 and IFRIC 4.
Information about the first-time application of IFRS 16 is presented in the section ‘Application of new accounting
methods
page 151 ’.
N O T E S
O T H E R  N O T E S
255
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Income statement
INCOME STATEMENT
€ million
2018/19
as reported
IFRS 16 change
2018/19
Sales revenues
27,082
0
27,082
Cost of sales
−22,476
10
−22,466
Gross profit on sales
4,606
10
4,617
Other operating income
1,405
−30
1,376
Selling expenses
−4,092
137
−3,955
General administrative expenses
−822
11
−811
Other operating expenses
−279
0
−279
Earnings from impairment of financial assets
−14
0
−14
Earnings share of operating companies recognised at equity
24
0
24
Earnings before interest and taxes EBIT
828
130
957
Earnings share of non-operating companies recognised at equity
0
0
0
Other investment result
−1
0
−1
Interest income
29
16
45
Interest expenses
−148
−137
−285
Other financial result
1
11
12
Net financial result
−119
−111
−230
Earnings before taxes EBT
709
19
728
Income taxes
−298
−3
−301
Profit or loss for the period from continuing operations
411
16
427
Profit or loss for the period from discontinued operations
−526
433
−93
Profit or loss for the period
−115
448
333
Profit or loss for the period attributable to non-controlling interests
11
0
11
from continuing operations
(6)
(0)
(6)
from discontinued operations
(5)
(0)
(5)
Profit or loss for the period attributable to the shareholders of
METRO AG
−126
448
322
from continuing operations
(405)
(15)
(421)
from discontinued operations
(−532)
(433)
(−99)
Earnings per share in € (basic = diluted)
−0.35
1.23
0.89
from continuing operations
(1.12)
(0.04)
(1.16)
from discontinued operations
(−1.46)
(1.19)
(−0.27)
N O T E S
O T H E R  N O T E S
256
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Reconciliation from net income for the period to total comprehensive income
RECONCILIATION FROM NET INCOME FOR THE PERIOD TO COMPREHENSIVE INCOME
€ million
2018/19
as reported
IFRS 16 change
2018/19
Profit or loss for the period
−115
448
333
Other comprehensive income
Items of other comprehensive income that will not be reclassified
subsequently to profit or loss
−75
0
−75
Remeasurement of defined benefit pension plans
−94
0
−94
Effects from the fair value measurements of equity instruments
−3
0
−3
Income tax attributable to items of other comprehensive income that
will not be reclassified subsequently to profit or loss
22
0
22
Items of other comprehensive income that may be reclassified
subsequently to profit or loss
135
−6
129
Currency translation differences from translating the financial
statements of foreign operations
138
−6
132
Effective portion of gains/losses from cash flow hedges
2
0
2
Effects from the fair value measurements of debt instruments
0
0
0
Income tax attributable to items of other comprehensive income that
may be reclassified subsequently to profit or loss
−5
0
−5
Other comprehensive income
59
−6
54
Total comprehensive income
−56
443
387
Total comprehensive income attributable to non-controlling interests
12
0
12
Total comprehensive income attributable to the shareholders of
METRO AG
−68
443
375
N O T E S
O T H E R  N O T E S
257
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Balance sheet
ASSETS
€ million
1/10/2018
as reported1
IFRS 16 change
1/10/2018
Non-current assets
7,504
2,236
9,740
Goodwill
797
0
797
Other intangible assets
499
0
499
Property, plant and equipment
5,314
2,155
7,469
Investment properties
97
38
135
Financial assets
86
0
86
Investments accounted for using the equity method
178
0
178
Other financial assets
39
125
164
Other non-financial assets
163
−133
30
Deferred tax assets
331
51
382
Current assets
7,700
803
8,504
Inventories
2,108
0
2,108
Trade receivables
568
0
568
Financial assets
2
0
2
Other financial assets
562
18
580
Other non-financial assets
353
−3
349
Entitlements to income tax refunds
206
0
206
Cash and cash equivalents
1,298
0
1,298
Assets held for sale
2,604
788
3,393
15,205
3,039
18,244
1 Adjustment due to application of IFRS 9 and IFRS 15.
N O T E S
O T H E R  N O T E S
258
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

EQUITY AND LIABILITIES
€ million
1/10/2018
as reported1
IFRS 16 change
1/10/2018
Equity
3,066
−832
2,234
Share capital
363
0
363
Capital reserve
6,118
0
6,118
Reserves retained from earnings
−3,456
−831
−4,287
Equity before non-controlling interests
3,025
−831
2,194
Non-controlling interests
41
−1
40
Non-current liabilities
3,427
2,377
5,804
Provisions for post-employment benefits plans and similar obligations
468
0
468
Other provisions
126
−38
88
Financial liabilities
2,590
2,465
5,055
Other financial liabilities
56
−1
56
Other non-financial liabilities
67
−43
24
Deferred tax liabilities
121
−7
114
Current liabilities
8,711
1,494
10,206
Trade liabilities
3,993
0
3,993
Provisions
274
−43
230
Financial liabilities
1,420
322
1,742
Other financial liabilities
745
−1
744
Other non-financial liabilities
394
−5
389
Income tax liabilities
191
0
191
Liabilities related to assets held for sale
1,694
1,221
2,915
15,205
3,039
18,244
1 Adjustment due to application of IFRS 9 and IFRS 15.
N O T E S
O T H E R  N O T E S
259
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Balance sheet
ASSETS
€ million
30/9/2019
as reported
IFRS 16 change
30/9/2019
Non-current assets
6,736
2,102
8,838
Goodwill
785
0
785
Other intangible assets
562
0
562
Property, plant and equipment
4,760
1,875
6,635
Investment properties
82
45
127
Financial assets
97
0
97
Investments accounted for using the equity method
179
0
179
Other financial assets
37
113
150
Other non-financial assets
43
−23
20
Deferred tax assets
191
93
284
Current assets
7,761
1,231
8,992
Inventories
1,946
0
1,946
Trade receivables
482
0
482
Financial assets
4
0
4
Other financial assets
603
19
622
Other non-financial assets
279
1
279
Entitlements to income tax refunds
190
0
190
Cash and cash equivalents
500
0
500
Assets held for sale
3,758
1,212
4,970
14,497
3,333
17,830
N O T E S
O T H E R  N O T E S
260
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

EQUITY AND LIABILITIES
€ million
30/9/2019
as reported
IFRS 16 change
30/9/2019
Equity
2,735
−390
2,345
Share capital
363
0
363
Capital reserve
6,118
0
6,118
Reserves retained from earnings
−3,778
−389
−4,167
Equity before non-controlling interests
2,703
−389
2,314
Non-controlling interests
32
−1
31
Non-current liabilities
3,419
2,234
5,652
Provisions for post-employment benefits plans and similar obligations
543
0
543
Other provisions
132
−24
108
Financial liabilities
2,498
2,268
4,766
Other financial liabilities
56
0
55
Other non-financial liabilities
71
−46
25
Deferred tax liabilities
119
36
155
Current liabilities
8,343
1,489
9,832
Trade liabilities
3,572
0
3,572
Provisions
168
−10
158
Financial liabilities
871
293
1,164
Other financial liabilities
728
−1
728
Other non-financial liabilities
233
−6
228
Income tax liabilities
169
0
169
Liabilities related to assets held for sale
2,601
1,212
3,813
14,497
3,333
17,830
N O T E S
O T H E R  N O T E S
261
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Cash flow statement
CASH FLOW STATEMENT
€ million
2018/19
as reported
IFRS 16 change
2018/19
EBIT
828
130
957
Depreciation/amortisation/impairment losses/reversal of impairment
losses of fixed assets excl. financial investments
532
243
774
Change in provisions for pensions and other provisions
−47
17
−31
Change in net working capital
27
0
27
Income taxes paid
−215
1
−215
Reclassification of gains (−) / losses (+) from the disposal of fixed assets
−356
−1
−357
Other
28
25
53
Cash flow from operating activities of continuing operations
796
413
1,209
Acquisition of subsidiaries
−1
0
−1
Investments in property, plant and equipment and in investment
property (excl. rights of use)
−258
0
−258
Other investments
−198
0
−198
Investments in monetary assets
−9
0
−9
Disposals of subsidiaries
0
0
0
Divestments
505
0
505
Disposal of financial investments
7
0
7
Cash flow from investing activities of continuing operations
46
0
46
Dividends paid
to METRO AG shareholders
−254
0
−254
to other shareholders
−7
0
−7
Redemption of liabilities from put options of non-controlling
shareholders
−2
0
−2
Proceeds from long-term borrowings
6,122
0
6,122
Redemption of borrowings
−6,844
77
−6,767
Redemption of lease liabilities
0
−540
−540
Interest paid
−161
49
−112
Interest received
28
0
28
Other financing activities
−4
0
−4
Cash flow from financing activities of continuing operations
−1,122
−413
−1,535
N O T E S
O T H E R  N O T E S
262
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

49. Remaining legal issues
Group demerger in 2017
In connection with the demerger of the group, several shareholders took legal action against
CECONOMY AG by seeking various legal remedies at the Düsseldorf District Court, such as
action for annulment, rescission and/or declaratory action, including against the resolution
passed by the Annual General Meeting of CECONOMY AG on 6 February 2017 concerning the
meeting’s approval of the demerger and spin-off agreement (demerger agreement) as well as
partially against the agreement itself. Pursuant to the provisions of the demerger agreement,
METRO AG has to bear the costs of the litigation and proceedings relating to the demerger. On
24 January 2018, the Düsseldorf District Court rejected the complaint in its entirety. All plaintiffs
have filed appeals against all these decisions with the Düsseldorf Higher Regional Court. On
4 April 2019, the Düsseldorf Higher Regional Court rejected all appeals. In the appeal judgement
in the rescission proceedings concerning the resolutions of the Annual General Meeting, the
appeal was admitted and lodged with the German Federal Court of Justice. The Higher Regional
Court of Düsseldorf did not allow the appeal in the proceedings for a declaration of invalidity or
pending ineffectiveness of the spin-off and demerger agreement. In one of these assessment
proceedings, the plaintiffs filed an appeal against denial of leave to appeal with the Federal
Court of Justice. The judgement in the other assessment proceedings is final. METRO AG
maintains its position that all of these legal challenges are inadmissible and/or unfounded and
has therefore not recognised corresponding risk provisions in its accounts.
Arbitration proceedings against Hudson’s Bay Company
METRO AG was a plaintiff in arbitration proceedings against the Canadian department store
group Hudson’s Bay Company (HBC). The background of the arbitration proceedings was an
outstanding purchase price claim of METRO AG against HBC, resulting from the disposal of
Galeria Kaufhof in 2015. METRO AG had initially retained minority interests in individual real
estate properties and granted HBC call options. In January 2016, HBC exercised its call options
and paid a preliminary purchase price. METRO AG believed that the paid preliminary purchase
price was insufficient and disputed the applied valuation basis. At the beginning of financial year
2020/21, an out-of-court settlement was reached with the sole legal successor of HBC regarding
the asserted claims. As a result, METRO withdrew its arbitration claim against HBC.
Further remaining legal issues
Companies of the METRO group form a party to judicial or arbitration proceedings as well as
antitrust law proceedings in various European countries. Insofar as the liability has been
sufficiently specified, appropriate risk provisions have been formed for these proceedings.
METRO AG and its group companies respectively have also filed claims for damages against
companies that have been sanctioned for illegal competition agreements (including truck and
sugar cartel).
N O T E S
O T H E R  N O T E S
263
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

50. Events after the closing date
METRO is acquiring the Aviludo Group
METRO is acquiring the Aviludo Group, the second-largest Portuguese food supplier based in
Quarteira, Algarve. In addition to the operational business, the transaction also includes
Aviludo’s logistics platforms. The Aviludo Group’s sales in 2019 (before the Covid-19 pandemic)
amounted to approximately €152 million. The acquisition price is in the mid double-digit million
range. This acquisition is further step towards a complete focus on HoReCa customers. The
acquisition is subject to approval by the relevant authorities. The transaction is expected to be
completed in the first half of 2021.
EP Global Commerce GmbH increases its share of voting rights in METRO AG
EP Global Commerce GmbH, which currently holds 29.99% of the voting rights in METRO AG
based on the notification of voting rights dated 10 October 2020, published a voluntary takeover
bid on 1 October 2020 with regard to all shares in METRO AG. In its final announcement on
20 November 2020, EP Global Commerce GmbH declared that a total of 10.60% of the ordinary
shares had been proffered to it until the end of the additional offer period. The finalisation of the
takeover bid is subject to regulatory approvals. According to the information in the offer
document, EP Global Commerce GmbH expects the closing by the end of 2020, but no later
than by February 2021.
51. Notes on related parties
In financial year 2019/20, METRO maintained the following business relations to related
companies:
€ million
2018/19
2019/20
Services provided
8
54
Associates
5
51
Joint ventures
3
3
Miscellaneous related parties
0
0
Services received
71
70
Associates
60
61
Joint ventures
7
6
Miscellaneous related parties
4
3
Receivables from services provided, as of 30/9
0
23
Associates
0
23
Joint ventures
0
0
Miscellaneous related parties
0
0
Liabilities from goods/services received as of 30/9
0
0
Associates
0
0
Joint ventures
0
0
Miscellaneous related parties
0
0
N O T E S
O T H E R  N O T E S
264
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Transactions with associated companies and other related parties
On 23 April 2020, the sale of METRO AG’s entire indirect majority shareholding in METRO China
to a subsidiary of Wumei Technology Group was completed. METRO has a stake of around 20%
in WM Holding (HK) Limited and thus in the activities of METRO China. Accordingly, METRO
transactions with Wumei Technology Group and its subsidiaries must be reported as related
company transactions.
The significant increase in services provided results from the business relations with METRO
Group Commerce (Shanghai) Co., Ltd. (formerly METRO China) based on a service level
agreement for 2 years and the granting of brand licences.
In connection with the prepaid brand use, contractual liabilities amounting to €153 million on
30 September 2020 were deferred at METRO.
The services received totalling €70 million (2018/19: €71 million) that METRO companies
received from associates and other related parties in financial year 2019/20 consisted mainly of
real estate leases in the amount of €63 million (2018/19: €63 million), thereof €61 million from
associates (2018/19: €60 million) and the rendering of services in the amount of €7 million
(2018/19: €8 million), thereof €6 million from joint ventures (2018/19: €7 million).
The balance sheet includes lease liabilities of €360 million (2018/19: €380 million) and
corresponding rights of use of €291 million (2018/19: €313 million) from rental agreements with
the following associates: OPCI FWP France, OPCI FWS France, Habib METRO Pakistan and
Iniziative Methab s.r.l.
In financial year 2019/20, METRO companies provided services to companies belonging to
the group of associates and related parties in the amount of €54 million (2018/19: €8 million).
A dividend of €76 million has been paid out to a shareholder with significant influence.
Business relations with related parties are based on contractual agreements providing for
arm’s length prices. As in financial year 2018/19, there were no business relations with related
natural persons and companies of management in key positions in financial year 2019/20.
Related persons (remuneration for management in key positions)
The management in key positions consists of members of the Management Board and the
Supervisory Board of METRO AG.
Thus, the expenses for members of the Management Board of METRO AG amounted to
€6.4 million (2018/19: €6.9 million) for short-term benefits and €0.7 million (2018/19:
€3.7 million) for post-employment benefits. The expenses for existing compensation
programmes with long-term incentive effect in financial year 2019/20, calculated in accordance
with IFRS 2, amounted to €−0.8 million (2018/19: €2.6 million).
The short-term compensation for the members of the Supervisory Board of METRO AG
amounted to €2.2 million (2018/19: €2.2 million).
The total compensation for members of the Management Board in key positions in financial
year 2019/20 amounted to €8.5 million (2018/19: €15.4 million).
For more Information about the basic principles of the remuneration system and the amount of Management Board
and Supervisory Board compensation, see no. 53 – Management Board and Supervisory Board
page 269 .
N O T E S
O T H E R  N O T E S
265
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

52. Long-term incentive for executives
Authorisations for the continuing operations of METRO
The METRO long-term incentive (METRO LTI) granted on 1 April 2019 to senior executives of
METRO and the management bodies of the METRO national subsidiaries was continued in
financial year 2019/20. The METRO LTI is a cyclical plan that is issued once every 3 years. The
respective performance targets focus on value creation in the individual national subsidiaries,
the relative total shareholder return of the METRO share compared to a comparison group as
well as the sustainable development and future orientation of METRO. The performance period
of the METRO LTI extends from 1 April 2019 to 31 March 2022. The individual target amounts are
accumulated proportionally during this period. The final target amount that has been
accumulated at the end of the performance period is based on the period of eligibility for the
METRO LTI as well as the individual’s position. According to the plan conditions, executives can
be newly admitted to the circle of beneficiaries on a pro rata basis or be removed from the plan.
METRO LTI operating principles
After the end of each performance period, the payout amount is determined by multiplying the
respectively accumulated individual target amount with a total goal achievement factor. This
factor consists of the achievement of the country performance component (60%), the
achievement of the METRO performance component (30%) and the achievement of the
sustainability component (10%). The payout amount is capped and the total goal achievement
factor cannot drop below 0.
For the country performance component, the success of the respective national subsidiary is
decisive for the beneficiaries of the METRO Wholesale national subsidiaries, while the overall
success of all national subsidiaries is taken as the basis for the other beneficiaries. The overall
success of METRO is determined for the METRO performance and sustainability components.
The country performance component rewards the achievement of internal economic targets
and is measured on the basis of a cash proxy achieved cumulatively for the METRO subsidiaries
in financial years 2018/19 to 2020/21. In each case, a value for the factor 0.0 and a target value
for the target achievement factor 1.0 were defined. In the case of intermediate values and values
above 1.0, the factor for goal achievement is calculated using linear interpolation to 2 decimal
points. The goal achievement factor for the country performance component cannot drop below
0 and is capped.
The METRO performance component is based on the success of METRO, expressed as the
relative total shareholder return (TSR) compared to a comparison group. This group consists of
the MDAX (50%) and the selected competitors (50%).
The comparison group of competitors consists of the following companies:
Bidcorp (ISIN ZAE000216537)
Bizim Toptan (ISIN TREBZMT00017)
Marr (ISIN IT0003428445)
Eurocash Group (ISIN PLEURCH00011)
Performance Food Group (ISIN US71377A1034)
US Foods (ISIN US9120081099)
Sysco (ISIN US8718291078)
Sligro (ISIN NL0000817179)
If the total shareholder returns of METRO AG and the comparison group run in parallel, the
performance target is 100% met; for an underperformance of −20%, the performance target is
met by one third; for anything below that, the target achievement is 0. Between these 2 points
N O T E S
O T H E R  N O T E S
266
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

and beyond, linear interpolation or extrapolation is used to determine target achievement. The
achievement of targets is capped.
Performance achievement for the sustainability component is determined on the basis of the
average rating which METRO AG is awarded in an external corporate sustainability assessment
during each performance period. Each year during the performance period, METRO AG
participates in the Corporate Sustainability Assessment conducted by the independent service
provider RobecoSAM. RobecoSAM AG uses this assessment to determine METRO AG’s ranking
within the industry group Food & Staples Retailing that is defined in accordance with the Global
Industry Classification Standard (GICS). RobecoSAM AG will inform METRO AG of any changes
in its sector classification. In case of material changes in the composition of companies or the
ranking method, RobecoSAM AG can determine adequate comparable values.
The company’s average ranking, rounded to whole numbers, is determined on the basis of the
rankings communicated during each performance period. The factor for the sustainability
component is determined in the following manner on the basis of the average of the
performance period:
Average rating (rounded)
Sustainability factor
1
3.00
2
2.00
3
1.50
4
1.00
5
0.75
6
0.50
7
0.25
Below rank 7
0.00
METRO mid-term incentive
In financial year 2018/19, a mid-term incentive (MTI) was launched to support the transformation
of METRO over a 2-year period. This plan allows top executives to participate in METRO’s
success and rewards the achievement of important internal transformation goals, such as
customer satisfaction and master data quality. No new beneficiaries were included in the MTI in
the past financial year.
The METRO mid-term incentive (METRO MTI) has a term (performance period) of 2 years and
was granted to the senior executives of METRO and the management bodies of the METRO
subsidiaries as of 1 April 2019. This is a one-time issue.
The METRO MTI is a phantom share plan in which a phantom share represents the value of
the METRO ordinary share. Participants were allocated an initial number of phantom shares
based on a target amount at the beginning of the performance period. At the end of the
performance period, the final number of phantom shares will be determined for each participant
and paid out with the dividend-adjusted value. Half of the final number of phantom shares is
measured by the achievement of an internal EBITDA target, based on METRO as a whole, and
half by country-specific transformation targets (transformation KPIs). The individual
performance targets cannot fall below 0 and are capped. The total payout from the plan is also
capped.
The EBITDA target is based on the EBITDA of METRO excluding earnings contributions from
real estate transactions in financial year 2018/19. Targets were set for 50%, 100% and 150%
N O T E S
O T H E R  N O T E S
267
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

degrees of target achievement. The achievement of targets is determined by linear interpolation
between these values. The achievement of targets is limited at the lower and upper levels.
Targets were set for all METRO subsidiaries for the transformation KPIs performance target in
the equally weighted components like-for-like sales growth in strategic customer groups, Net
Promoter Score (NPS) and master data quality. A country-specific overall factor is determined
from the achievement of the respective targets with regard to the transformation KPIs.
With regard to the target for like-for-like sales growth in strategic customer groups, growth
targets were set for individual customer groups in line with the strategic orientation of the
respective national subsidiary. For each national subsidiary and for each of the strategic
customer groups relevant for that country, the Management Board of METRO AG set separate
target values for the achievement of the factor 1.00. Furthermore, a threshold (a minimum
performance target where the factor is 0.00) and the target values for reaching a factor of 2.00
and 3.00 were defined. Linear interpolation is performed between these values to determine the
achievement of the respective targets. The goal achievement factor cannot drop below 0 and is
capped.
The NPS factor (qualitative) rewards the careful implementation and maintenance of the NPS
system by the national subsidiaries, which was entrenched in the NPS target image of METRO.
The relevant measurement of the performance for the determination of the target achievement
is carried out during the performance period on 2 dates. The measurement focuses in particular
on the routines and processes associated with the introduction of the NPS as well as the success
of the respective national subsidiary. The goal achievement cannot drop below 0 and is capped.
The master data quality component rewards a sustainable improvement of the core attributes
of article master data and customer contact data, since complete and correct data are a basic
requirement for all METRO processes. 4 relevant data clusters have been defined (purchasing
units, sales units, customers and authorised buyers). Separate target values for achieving factor
1.00 were set for each national subsidiary. Furthermore, a threshold (a minimum performance
target where the factor is 0.00) and the target values for reaching a factor of 2.00 and 3.00
were defined. Linear interpolation is performed between these values to determine the
achievement of the respective targets. Each identified factor for the past performance
component cannot drop below 0 and is capped.
The transformation KPIs target achievement for METRO as a whole is calculated separately
for each subcomponent as a sales-weighted average of the respective factors determined for
the national subsidiaries.
As of the closing date on 30 September 2020, the initially granted number of phantom shares
was 1,099,739. Assuming that all performance targets can be achieved to the maximum extent
possible, the maximum number of phantom shares is 2,292,956.
As of 30 September 2020, the target amount for the eligible group of persons was
€28.8 million. The mentioned tranches of share-based payment programmes total expenses of
€9.6 million (2018/19: €11.7 million) were incurred.
The related provisions as of 30 September 2020 amount to €21.3 million (30/9/2019:
€11.7 million).
The provisions correspond to the fair value of the plans calculated pro rata temporis. This fair
value is determined by an external expert using recognised financial mathematical methods. The
basis for this is a risk-neutral, arbitrage-free valuation model of the option price theory (in this
case using Monte Carlo simulation). The input data for the simulation are measurements and
estimates of internal key performance indicators as of the reporting date and the external
market values as of the valuation date.
N O T E S
O T H E R  N O T E S
268
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

53. Management Board and Supervisory Board
Remuneration of members of the Management Board in financial year 2019/20
The remuneration of the active members of the Management Board essentially consists of a
fixed salary, a short-term variable remuneration component (short-term incentive and special
bonuses), as well as the long-term variable remuneration (long-term incentive) granted in
financial year 2019/20.
The short-term incentive for members of the Management Board is essentially determined by
the development of financial performance targets related to that financial year and also
considers the attainment of agreed-upon targets.
The remuneration of the active members of the Management Board in financial year 2019/20
amounted to €11.5 million (2018/19: €9.8 million). This includes €3.8 million (2018/19:
€3.5 million) in fixed salaries, €2.1 million (2018/19: €2.0 million) in short-term performance-
based remuneration, €5.1 million (2018/19: €3.9 million) in share-based long-term variable
remuneration and €0.5 million (2018/19: €0.3 million) in non-monetary and supplemental
benefits.
The share-based long-term variable remuneration (performance share plan) granted in
financial year 2019/20 is recognised at fair value, taking into account the revised performance
targets. The Supervisory Board resolved on 24 September 2020 to adjust the LTI tranche 2019/
20 to the current medium-term planning with regard to the target of the EPS component in
order to mitigate the effects on the remuneration of the Management Board and to maintain the
incentive effect. Furthermore, the TSR component was adjusted with regard to the composition
and valuation of the comparison group of competitors. The comparison group of competitors
was reduced by the company Bizim Toptan and the median is used instead of the arithmetic
mean to determine the TSR value for the comparison group.
The number of conditionally allocated performance shares for the members of the
Management Board amounts to a total of 514,821.
In financial year 2019/20, value adjustments resulted from the current share-based tranches
of the long-term variable remuneration. The company’s expenses amounted to
€0.464 million for Mr Koch, €0.126 million for Ms Euenheim and €0.145 million for Mr Gasset and
Mr Poirier each. Provisions of €0.376 million for Mr Baier, €1.171 million for Mr Hutmacher and
€0.087 million for Mr Palazzi were reversed in financial year 2019/20.
As of 30 September 2020, the provisions for the members of the Management Board totalled
€2.71 million. Of this amount, €1.63 million was attributable to Mr Koch, €0.32 million to Mr Baier,
€0.13 million to Ms Euenheim, €0.15 million to Mr Gasset and Mr Poirier each, and €0.34 million
to Mr Hutmacher.
Expenses and provisions were determined by external experts using a recognised financial
mathematical procedure.
An agreement was reached with Mr Hutmacher in financial year 2018/19 for the premature
termination of his employment contract with effect from the end of 31 December 2019. A
severance payment of €2,957,700 was agreed to settle the remaining term of his employment
contract (1 January 2020 to 30 September 2020) and the short-term incentive for the period
from 1 October 2019 to 31 December 2019. This settlement covers Mr Hutmacher’s claims, taking
into account the contractually agreed severance payment cap in accordance with the German
Corporate Governance Code. The severance payment, which was due in financial year 2019/20,
was fully accrued in financial year 2018/19. The tranches of the long-term incentive already
granted to Mr Hutmacher will be settled in accordance with the terms of the plan.
In financial year 2019/20, an agreement was reached with Mr Palazzi regarding the early
termination of his employment contract with effect from the end of 31 May 2020. The short-term
N O T E S
O T H E R  N O T E S
269
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

incentive for the period from 1 October 2019 to 31 May 2020 was paid out in May 2020. No
severance payment was agreed with Mr Palazzi and the tranches of the long-term incentive
granted to him were cancelled without compensation.
In financial year 2019/20, an agreement was also reached on the early termination of the
employment contract with Mr Koch with effect from the end of 31 December 2020. In
accordance with his contract, the short-term incentive until 31 December 2020 will be paid to
Mr Koch. The tranches of the long-term incentive already granted to Mr Koch remain in place
and will be settled in accordance with the terms of the plan. No severance payment will be paid
to Mr Koch.
Total compensation of former members of the Management Board
There are congruent, reinsured liabilities from pension provisions covered by life insurance
contracts of €6.4 million towards former members of the Management Board.
Individual versions of the disclosures released pursuant to § 314 Section 1 No. 6a Sentences 5 to 8 of the German
Commercial Code can be found in chapter 6 remuneration report
page 104 in the combined management report.
Compensation of members of the Supervisory Board
The total remuneration of all members of the Supervisory Board in financial year 2019/20
amounted to €2.2 million (2018/19: €2.2 million).
For more information about the remuneration of the members of the Supervisory Board, see chapter 6 remuneration
report
page 104 in the combined management report.
54. Auditor’s fees for the financial year pursuant to § 314 Section 1 No. 9 of the
German Commercial Code (HGB)
KPMG AG Wirtschaftsprüfungsgesellschaft invoiced total professional fees in the amount of
€5.4 million for services rendered. €4.7 million of this amount was attributable to professional
fees for the audit of the financial statements, €0.1 million to other assurance services and
€0.6 million to other services. Only services that are consistent with the task of the auditor of
the annual financial statements and consolidated financial statements of METRO AG were
provided.
The fees for audit services provided by KPMG AG Wirtschaftsprüfungsgesellschaft relate to
the audit of the consolidated financial statements and the Annual Financial Statements of
METRO AG, including statutory order extensions. In addition, the fees for the audits of IFRS
reporting packages of subsidiaries of METRO AG for inclusion in the METRO consolidated
financial statements as well as for the audits of annual financial statements of subsidiaries under
commercial law are included. Moreover, audit-integrated reviews of interim financial statements,
project-related audits within the framework of the introduction of new accounting standards and
ISAE 3402 audit-related services were performed.
N O T E S
O T H E R  N O T E S
270
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Other assurance services relate to agreed audit procedures (for example on sales lease
agreements, compliance certificates, declarations of completeness in accordance with the
German Packaging Ordinance and concession fees) and the business audit of the summarised
non-financial statement and the Corporate Responsibility Report.
Other services relate to auditing support services as part of a VAT compliance management
system, support services based on IDW PS 980 within the IT compliance system field, as well as
fees for financial due diligence and consulting services.
55. Declaration of conformity with the German Corporate Governance Code
In September 2020, the Management Board and the Supervisory Board issued the annual
declaration of conformity pursuant to § 161 of the German Stock Corporation Act (AktG)
concerning the recommendations of the Government Commission on the German Corporate
Governance Code. The statement is published permanently on the website of METRO AG
(www.metroag.de/en).
N O T E S
O T H E R  N O T E S
271
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

56. Election to be exempt from §§ 264 Section 3 and 264b of the German
Commercial Code
The following domestic subsidiaries in the legal form of stock corporations or partnerships will
use the exemption provisions according to § 264 Section 3 and § 264b of the German
Commercial Code, and will thus refrain from preparing their annual financial statements for
financial year 2019/20 as well as the majority from preparing their notes and management
report (according to the German Commercial Code).
a) Operating companies and service units
MIP METRO Group Intellectual Property Management GmbH
Düsseldorf
N & NF Trading GmbH
Düsseldorf
METRO Siebte Gesellschaft für Vermögensverwaltung mbH
Düsseldorf
Hospitality Digital GmbH
Düsseldorf
METRO GROUP Accounting Center GmbH
Wörrstadt
METRO Innovations Holding GmbH
Düsseldorf
METRO Groß- und Lebensmitteleinzelhandel Holding GmbH
Düsseldorf
MGL METRO Group Logistics Warehousing Beteiligungs GmbH
Düsseldorf
METRO LOGISTICS Germany GmbH
Düsseldorf
MGL METRO Group Logistics GmbH
Düsseldorf
MGC METRO Group Clearing GmbH
Düsseldorf
METRO Deutschland Consulting GmbH
Düsseldorf
MIP METRO Group Intellectual Property GmbH & Co. KG
Düsseldorf
METRO Dienstleistungs-Holding GmbH
Düsseldorf
METRO Re AG
Düsseldorf
METRO Advertising GmbH
Düsseldorf
METRO Insurance Broker GmbH
Düsseldorf
METRO-nom GmbH
Düsseldorf
METRO SB-Großmärkte GmbH & Co. Kommanditgesellschaft
Esslingen am
Neckar
METRO SB-Großmärkte GmbH & Co. Kommanditgesellschaft
Linden
METRO GastroFinanz GmbH
Düsseldorf
METRO Großhandelsgesellschaft mbH
Düsseldorf
METRO Deutschland GmbH
Düsseldorf
MGE Warenhandelsgesellschaft mbH
Düsseldorf
MGL METRO Group Logistics GmbH
Düsseldorf
MCC Trading International GmbH
Düsseldorf
METRO Cash & Carry International GmbH
Düsseldorf
Multi-Center Warenvertriebs GmbH
Düsseldorf
METRO Erste Erwerbsgesellschaft mbH
Düsseldorf
MCC Trading Deutschland GmbH
Düsseldorf
Goldhand Lebensmittel- u. Verbrauchsgüter-Vertriebsgesellschaft mit beschränkter Haftung
Düsseldorf
Johannes Berg GmbH, Weinkellerei
Düsseldorf
Weinkellerei Thomas Rath GmbH
Düsseldorf
METRO INTERNATIONAL SUPPLY GmbH
Düsseldorf
METRO FSD Holding GmbH
Düsseldorf
RUNGIS express GmbH
Meckenheim
N O T E S
O T H E R  N O T E S
272
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Petit RUNGIS express GmbH
Meckenheim
CCG DE GmbH
Kelsterbach
cc delivery gmbh (Verschmelzung zum 1/10/2019)
Meckenheim
HoReCa Investment Management GmbH
Düsseldorf
HoReCa Komplementär GmbH
Düsseldorf
HoReCa Innovation I GmbH & Co. KG
Düsseldorf
HoReCa Investment I GmbH & Co. KG
Düsseldorf
HoReCa Strategic I GmbH & Co. KG
Düsseldorf
METRO Wholesale & Food Services Vermögensverwaltung GmbH & Co. KG
Düsseldorf
METRO Wholesale & Food Services Vermögensverwaltung Management GmbH
Düsseldorf
MIP METRO Holding Management GmbH
Düsseldorf
METRO Hospitality Digital Holding GmbH
Düsseldorf
METRO Dritte Verwaltungs GmbH
Düsseldorf
METRO Vierte Verwaltungs GmbH
Düsseldorf
METRO Fünfte Verwaltungs GmbH
Düsseldorf
METRO Sechste Verwaltungs GmbH
Düsseldorf
METRO Siebte Verwaltungs GmbH
Düsseldorf
METRO Wholesale & Food Services Vermögensverwaltung GmbH & Co. KG
Düsseldorf
METRO Wholesale & Food Services Vermögensverwaltung Management GmbH
Düsseldorf
MIP METRO Holding Management GmbH
Düsseldorf
METRO Hospitality Digital Holding GmbH
Düsseldorf
METRO Dritte Verwaltungs GmbH
Düsseldorf
METRO Vierte Verwaltungs GmbH
Düsseldorf
METRO Fünfte Verwaltungs GmbH
Düsseldorf
METRO Sechste Verwaltungs GmbH
Düsseldorf
METRO Siebte Verwaltungs GmbH
Düsseldorf
Hospitality Digital Services Germany GmbH
Düsseldorf
HoReCa Innovation I Carry GmbH & Co. KG
Düsseldorf
HoReCa Innovation I Team GmbH & Co. KG
Düsseldorf
HoReCa Investment I Carry GmbH & Co. KG
Düsseldorf
HoReCa Investment I Team GmbH & Co. KG
Düsseldorf
HoReCa Strategic I Carry GmbH & Co. KG
Düsseldorf
METRO Markets GmbH
Düsseldorf
METRO Payment Services GmbH
Düsseldorf
METRO Fulfillment GmbH
Düsseldorf
METRO Cash & Carry China Holding GmbH
Düsseldorf
METRO Asia Investment GmbH
Düsseldorf
NX-Food GmbH
Düsseldorf
METRO Achte Verwaltungs GmbH
Düsseldorf
METRO Neunte Verwaltungs GmbH
Düsseldorf
METRO Zehnte Verwaltungs GmbH
Düsseldorf
METRO Elfte Verwaltungs GmbH
Düsseldorf
METRO Zwölfte Verwaltungs GmbH
Düsseldorf
METRO Dreizehnte Verwaltungs GmbH
Düsseldorf
b) Real estate companies
METRO Digital GmbH
Düsseldorf
METRO Asset Management Services GmbH
Düsseldorf
N O T E S
O T H E R  N O T E S
273
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Immobilien-Vermietungsgesellschaft von Quistorp GmbH & Co. Objekt Altlandsberg KG
Düsseldorf
ADAGIO 3. Grundstücksverwaltungsgesellschaft mbH
Düsseldorf
ARKON Grundbesitzverwaltung GmbH
Düsseldorf
METRO PROPERTIES Holding GmbH
Düsseldorf
MCC Grundstücksverwaltungsgesellschaft mbH & Co. Objekt Augsburg KG
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Bochum Otto Straße KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Rastatt KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Frankenthal KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Frankenthal-Studernheim KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Paderborn "Südring Center" KG i. L.
Düsseldorf
RUTIL Verwaltung GmbH & Co. SB-Warenhaus Bielefeld KG i. L.
Düsseldorf
GKF Grundstücksverwaltungsgesellschaft mbH & Co. Objekt Schaper Bremen-Habenhausen KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Hamm KG
Düsseldorf
ROSARIA Grundstücks-Vermietungsgesellschaft mbH & Co. Objekt Gerlingen KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Oldenburg KG i. L.
Düsseldorf
Renate Grundstücksverwaltungsgesellschaft mbH
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Mönchengladbach-Rheydt KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Emden KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Entwicklungsgrundstücke KG
Düsseldorf
RUDU Verwaltungsgesellschaft mbH
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Ratingen KG i. L.
Düsseldorf
GKF Grundstücks-Vermietungsgesellschaft mbH & Co. Objekt Donaueschingen KG i. L.
Düsseldorf
GKF Grundstücks-Vermietungsgesellschaft mbH & Co. Objekt Köln-Porz KG i. L.
Düsseldorf
TIMUG GmbH & Co. Objekt Homburg KG i. L.
Düsseldorf
AIB Verwaltungs GmbH
Düsseldorf
SIL Verwaltung GmbH & Co. Objekt Haidach KG
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Gäufelden KG i. L.
Düsseldorf
DFI Verwaltungs GmbH
Düsseldorf
KUPINA Grundstücks-Verwaltungsgesellschaft mbH & Co. KG i. L.
Düsseldorf
METRO Retail Real Estate GmbH
Düsseldorf
METRO Wholesale Real Estate GmbH
Düsseldorf
ADAGIO Grundstücksverwaltungsgesellschaft mbH
Düsseldorf
ADAGIO 2. Grundstücksverwaltungsgesellschaft mbH
Düsseldorf
2. Schaper Objekt GmbH & Co. Kiel KG
Düsseldorf
Adolf Schaper GmbH & Co. Grundbesitz-KG i. L.
Düsseldorf
ZARUS Verwaltung GmbH & Co. Objekte Niedersachsen KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Hildesheim-Senking KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Brühl KG
Düsseldorf
ZARUS Verwaltung GmbH & Co. Objekt Mutterstadt KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Hannover-Linden KG i. L.
Düsseldorf
GKF 6. Objekt Vermögensverwaltungsgesellschaft mbH
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. 8. Objekt - KG i. L.
Düsseldorf
METRO PROPERTIES GmbH & Co. KG
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. 10. Objekt-KG
Düsseldorf
MCC Vermögensverwaltungsgesellschaft mbH & Co. Objekt Ludwigshafen KG
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Hannover Fössestraße KG i. L.
Düsseldorf
FZB Fachmarktzentrum Bous Verwaltungsgesellschaft mbH & Co. KG i. L.
Düsseldorf
N O T E S
O T H E R  N O T E S
274
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Wolfgang Wirichs GmbH
Düsseldorf
MTE Grundstücksverwaltung GmbH & Co. Objekt
Duisburg oHG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Gewerbegrundstücke KG
Düsseldorf
BAUGRU Immobilien - Beteiligungsgesellschaft mit beschränkter Haftung & Co. Grundstücksverwaltung
KG i. L.
Düsseldorf
GBS Gesellschaft für Unternehmensbeteiligungen mbH
Düsseldorf
STW Grundstücksverwaltung GmbH
Düsseldorf
PIL Grundstücksverwaltung GmbH
Düsseldorf
NIGRA Verwaltung GmbH & Co. Objekt Moers KG i. L.
Düsseldorf
METRO Cash & Carry Grundstücksverwaltungsgesellschaft mbH
Düsseldorf
NIGRA Verwaltung GmbH & Co. Objekt Eschweiler KG i. L.
Düsseldorf
NIGRA Verwaltung GmbH & Co. Objekt Langendreer KG i. L.
Düsseldorf
NIGRA Verwaltung GmbH & Co. Objekt Rendsburg KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. 25. Objekt-KG
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Herten KG i. L.
Düsseldorf
NIGRA Verwaltung GmbH & Co. Objekt Neunkirchen KG
Düsseldorf
Deutsche SB-Kauf GmbH & Co. KG
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Saar-Grund KG
Düsseldorf
Schaper Grundbesitz-Verwaltungsgesellschaft mbH
Düsseldorf
MDH Secundus GmbH & Co. KG
Düsseldorf
NIGRA Verwaltung GmbH & Co. Objekt Germersheim KG i. L.
Düsseldorf
Kaufhalle GmbH & Co. Objekt Lager Apfelstädt KG
Düsseldorf
Kaufhalle GmbH
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Espelkamp KG i. L.
Düsseldorf
ASSET Immobilienbeteiligungen GmbH
Düsseldorf
ASSET Köln-Kalk GmbH
Düsseldorf
Horten Nürnberg GmbH
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Duisburg KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Heinsberg KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Stralsund KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Bitterfeld KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Nettetal KG
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Krefeld KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Braunschweig Hamburger Straße KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Wülfrath KG i. L.
Düsseldorf
GKF Grundstücksverwaltungsgesellschaft mbH & Co. Objekt Wolfenbüttel KG i. L.
Düsseldorf
GKF Grundstücksverwaltung GmbH & Co. Objekt Groß-Zimmern KG i. L.
Düsseldorf
GKF Grundstücksverwaltung GmbH & Co. Objekt Norden KG i. L.
Düsseldorf
TIMUG Verwaltung GmbH
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Mönchengladbach ZV II KG
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Kulmbach KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Regensburg KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Pfarrkirchen KG i. L.
Düsseldorf
METRO Leasing Objekt Schwerin GmbH
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Kassel KG i. L.
Düsseldorf
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Bannewitz KG i. L.
Düsseldorf
N O T E S
O T H E R  N O T E S
275
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Hürth KG
Düsseldorf
Deutsche SB-Kauf Beteiligungsverwaltung GmbH
Düsseldorf
Schaper Beteiligungsverwaltung GmbH
Düsseldorf
MCC Grundstücksverwaltungsgesellschaft mbH & Co. Objekt Porta-Westfalica KG
Düsseldorf
MCC Grundstücksverwaltungsgesellschaft mbH & Co. Objekt München-Pasing KG
Düsseldorf
MCC Grundstücksverwaltungsgesellschaft mbH & Co. Objekt Schwelm KG
Düsseldorf
MCC Grundstücksverwaltungsgesellschaft mbH & Co. Objekt Berlin-Friedrichshain KG
Düsseldorf
MCC Grundstücksverwaltungsgesellschaft mbH & Co. Objekt Hamburg-Altona KG
Düsseldorf
METRO Campus Services GmbH
Düsseldorf
N O T E S
O T H E R  N O T E S
276
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

57. Overview of the major fully consolidated group companies
Name
Registered office
Group shares in %
Sales1 (€ million)
Holding companies
METRO AG
Düsseldorf, Germany
0
METRO Cash & Carry International GmbH
Düsseldorf, Germany
100.00
0
METRO Wholesale
METRO Deutschland GmbH
Düsseldorf, Germany
100.00
4,410
METRO France S.A.S.
Nanterre, France
100.00
3,833
METRO Cash & Carry OOO
Moscow, Russia
100.00
2,679
METRO Italia Cash and Carry S. p. a
San Donato Milanese, Italy
100.00
1,416
Makro Cash and Carry Polska S.A.
Warsaw, Poland
100.00
1,330
METRO CASH & CARRY ROMANIA SRL
Bucharest, Romania
100.00
1,233
Makro Autoservicio Mayorista S. A. U.
Madrid, Spain
100.00
1,036
MAKRO Cash & Carry CR s.r.o.
Prague, Czech Republic
100.00
1,017
METRO Grosmarket Bakirköy Alisveris Hizmetleri
Ticaret Ltd. Sirketi
Istanbul, Turkey
100.00
985
METRO Distributie Nederland B. V.
Amsterdam, Netherlands
100.00
797
METRO Cash & Carry India Private Limited
Bengaluru, India
100.00
787
METRO Cash & Carry Österreich GmbH
Vösendorf, Austria
73.00
736
MAKRO Cash & Carry Belgium NV
Wommelgem, Belgium
100.00
713
METRO Cash & Carry Ukraine Ltd.
Kiev, Ukraine
100.00
699
Other companies
METRO Sourcing International Limited
Hong Kong, China
100.00
24
METRO LOGISTICS Germany GmbH
Düsseldorf, Germany
100.00
0
METRO PROPERTIES GmbH & Co. KG
Düsseldorf, Germany
92.90
0
METRO-nom GmbH
Düsseldorf, Germany
100.00
0
METRO International AG
Baar, Switzerland
100.00
0
1 Including incorporated national subsidiaries.
N O T E S
O T H E R  N O T E S
277
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

58. Boards of METRO AG and mandates of their members
Members of the Supervisory Board
(As of 1 December 2020)
Jürgen Steinemann (Chairman)
CEO of JBS Holding GmbH
Shareholder representative
a) Big Dutchman AG (Chairman, since
19 December 2019)
b) Bankiva B.V., Wezep, Netherlands –
Supervisory Board (Chairman)
Lonza Group AG1, Basle, Switzerland – Board
of Directors
Xaver Schiller (Vice Chairman, since 22 July 2020)
Chairman of the Group Works Council of
METRO AG
Chairman of the General Works Council of
METRO Deutschland GmbH
Employee representative
a) METRO Großhandelsgesellschaft mbH2
(Vice Chairman)
b) None
Marco Arcelli, since 22 January 2020
CEO of EP Global Commerce a.s. (EPGC),
Prague, Czech Republic
Shareholder representative
a) None
b) None
Werner Klockhaus (Vice Chairman), until 25 June
2020
Chairman of the General Works Council of real
GmbH
Employee representative
a) Hamburger Pensionskasse von 1905
Versicherungsverein auf Gegenseitigkeit
real GmbH2 (Vice Chairman)
b) None
Stefanie Blaser
Chairwoman of the General Works Council of
METRO PROPERTIES GmbH & Co. KG
Saarbrücken
Employee representative
a) None
b) None
Herbert Bolliger
Self-employed business consultant
Shareholder representative
a) None
b) Amann Wine Group Holding SA, Zug,
Switzerland – Board of Directors
BNP Paribas (Suisse) AG1, Geneva, Switzerland
– Board of Directors
Eldora Holding SA, Rolle, Switzerland – Board
of Directors, since 4 June 2020
MTH Retail Group Holding GmbH, Vienna,
Austria – Supervisory Board
Office World Holding AG, Bolligen, Switzerland
– Board of Directors (Vice President)
Gwyn Burr
Member of the Board of Directors of
Hammerson plc, London, United Kingdom
Shareholder representative
a) None
b) Hammerson plc1, London, United Kingdom –
Board of Directors
Ingleby Farms and Forests ApS, Køge,
Denmark – Board of Directors
Just Eat Ltd. (formerly Just Eat plc1), London,
United Kingdom – Board of Directors, until
1 May 2020
Just Eat Takeaway.com N.V.1, Amsterdam,
Netherlands – Supervisory Board, since
31 January 2020
Sainsbury’s Bank plc1, London, United
Kingdom – Board of Directors, until 31 January
2020
Taylor Wimpey plc1, London, United Kingdom –
Board of Directors
a) Memberships in other statutory supervisory boards within the meaning of § 125 Section 1 Sentence 5, 1st alt. of the German Stock
Corporation Act (AktG).
b) Memberships in comparable German and international supervisory bodies of commercial enterprises within the meaning of § 125 Section 1
Sentence 5, 2nd alt. of the German Stock Corporation Act (AktG).
1 Listed company.
2 Intra-group mandate.
N O T E S
O T H E R  N O T E S
278
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Thomas Dommel
Chairman of the General Works Council of
METRO LOGISTICS Germany GmbH
Employee representative
a) METRO LOGISTICS Germany GmbH2 (Vice
Chairman)
b) None
Prof. Dr Edgar Ernst
President of the German Financial Reporting
Enforcement Panel (FREP)
Shareholder representative
a) TUI AG1
Vonovia SE1 (Vice Chairman)
b) None
Dr Florian Funck, until 7 December 2019
Member of the Management Board of Franz
Haniel & Cie. GmbH
Shareholder representative
a) CECONOMY AG1
TAKKT AG1 (Chairman)
Vonovia SE1
b) None
Michael Heider
Vice Chairman of the General Works Council of
METRO Deutschland GmbH
Chairman of the Works Council of the METRO
wholesale store Schwelm
Employee representative
a) METRO Großhandelsgesellschaft mbH2
b) None
Udo Höfer, since 17 July 2020
General Manager of the METRO Deutschland
GmbH store Krefeld
Employee representative
a) None
b) None
Peter Küpfer
Self-employed business consultant
Shareholder representative
a) None
b) AHRA AG, Zurich, Switzerland – Board of
Directors (President)
AHRB AG, Zurich, Switzerland – Board of
Directors (President)
ARH Resort Holding AG, Zurich, Switzerland –
Board of Directors (President)
Breda Consulting AG, Zurich, Switzerland –
Board of Directors (President)
Cambiata Ltd, Road Town, Tortola, British
Virgin Islands – Board of Directors
Cambiata Schweiz AG, Zurich, Switzerland –
Board of Directors
Gebr. Schmidt GmbH & Co. KG – Advisory
Council, until 23 December 2019
Lake Zurich Fund Exempt Company, George
Town, Grand Cayman, Cayman Islands – Board
of Directors
SERAVI AG, Zollikon, Switzerland – Board of
Directors
Supra Holding AG, Zug, Switzerland – Board of
Directors (President)
Rosalinde Lax, since 17 July 2020
Chairwoman of the Works Council of METRO
Deutschland GmbH
Employee representative
a) METRO Großhandelsgesellschaft mbH2
b) None
Susanne Meister, until 25 June 2020
Member of the General Works Council of real
GmbH
Employee representative
a) None
b) None
Dr Angela Pilkmann, until 25 June 2020
Category Manager Food at real GmbH
Employee representative
a) None
b) None
a) Memberships in other statutory supervisory boards within the meaning of § 125 Section 1 Sentence 5, 1st alt. of the German Stock
Corporation Act (AktG).
b) Memberships in comparable German and international supervisory bodies of commercial enterprises within the meaning of § 125 Section 1
Sentence 5, 2nd alt. of the German Stock Corporation Act (AktG).
1 Listed company.
2 Intra-group mandate.
N O T E S
O T H E R  N O T E S
279
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Dr Fredy Raas
Managing Director of Beisheim Holding GmbH,
Baar, Switzerland
Shareholder representative
a) CECONOMY AG1
b) ARISCO Holding AG, Baar, Switzerland –
Board of Directors
HUWA Finanz- und Beteiligungs AG, Au,
Switzerland – Board of Directors (President)
Eva-Lotta Sjöstedt
Self-employed business consultant
Shareholder representative
a) None
b) Elisa Corporation1, Helsinki, Finland, Board
of Directors, since 20 April 2020
Tritax EuroBox plc1, London, United Kingdom,
Board of Directors, since 10 December 2019
Dr Liliana Solomon
Group Chief Financial Officer of Awaze
Limited, London, United Kingdom
Shareholder representative
a) None
b) Unit4 N.V., Utrecht, Netherlands –
Supervisory Board, since 1 January 2020
Alexandra Soto
Group Executive Director, Managing Director
and Global Chief Operating Officer of Lazard
Financial Advisory, Lazard & Co., Limited,
London, United Kingdom
Shareholder representative
a) None
b) None
Manuela Wetzko, since 17 July 2020
IT coordinator for region 5 at METRO
Deutschland GmbH
Employee representative
a) METRO Großhandelsgesellschaft mbH2
b) None
Angelika Will
Honorary Judge at the Federal Labour Court
Secretary of the Regional Association Board
North Rhine-Westphalia of DHV – Die
Berufsgewerkschaft e. V.
(federal specialist group on trade and
logistics)
Employee representative
a) None
b) None
Manfred Wirsch
Trade union secretary of ver.di – Vereinte
Dienstleistungsgewerkschaft e. V.
Employee representative
a) METRO Großhandelsgesellschaft mbH2
b) None
Silke Zimmer
Trade union secretary of ver.di – Vereinte
Dienstleistungsgewerkschaft e. V.
Employee representative
a) None
b) None
a) Memberships in other statutory supervisory boards within the meaning of § 125 Section 1 Sentence 5, 1st alt. of the German Stock
Corporation Act (AktG).
b) Memberships in comparable German and international supervisory bodies of commercial enterprises within the meaning of § 125 Section 1
Sentence 5, 2nd alt. of the German Stock Corporation Act (AktG).
1 Listed company.
2 Intra-group mandate.
N O T E S
O T H E R  N O T E S
280
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Permanent Supervisory Board committees and their composition
(As of 1 December 2020)
Presidential Committee
Jürgen Steinemann (Chairman)
Xaver Schiller (Vice Chairman)
Thomas Dommel
Prof. Dr Edgar Ernst
Audit Committee
Prof. Dr Edgar Ernst (Chairman)
Xaver Schiller (Vice Chairman)
Marco Arcelli
Stefanie Blaser
Michael Heider
Dr Fredy Raas
Nomination Committee
Jürgen Steinemann (Chairman)
Gwyn Burr
Herbert Bolliger
Mediation Committee pursuant to § 27 Section 3 of
the German Co-determination Act
Jürgen Steinemann (Chairman)
Xaver Schiller (Vice Chairman)
Thomas Dommel
Prof. Dr Edgar Ernst
N O T E S
O T H E R  N O T E S
281
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Members of the Management Board
(As of: 1 December 2020)
Olaf Koch (Chairman)
a) real GmbH2 (Chairman), until 25 June 2020
METRO-NOM GmbH2 (Chairman), since
28 January 2020
b) Hospitality Digital GmbH2– Advisory Board
(Chairman)
Christian Baier (Chief Financial Officer)
a) METRO Großhandelsgesellschaft mbH2
METRO Re AG2 – Supervisory Board
(Chairman)
b) Hospitality Digital GmbH2 – Advisory Board
METRO Cash & Carry International Holding
GmbH2, Vösendorf, Austria – Supervisory
Board (Chairman)
METRO Holding France S. A.2, Vitry-sur-Seine,
France – Board of Directors
Andrea Euenheim (Chief Human Resources Officer
and Labour Director)
Since 1 November 2019
a) METRO Großhandelsgesellschaft mbH2,
since 1 November 2019
METRO LOGISTICS Germany GmbH2, since
16 July 2020
METRO-NOM GmbH2, since 4 March 2020
real GmbH2, until 25 June 2020
b) None
Rafael Gasset (Chief Operating
Officer – Convenience Cluster)
Since 1 April 2020
a) None
b) METRO Logistics Polska sp. z o.o.2, Warsaw,
Poland – Supervisory Board
Makro Cash and Carry Polska S.A.2, Warsaw,
Poland – Supervisory Board
WM Holding (HK) Limited, Hong Kong, China –
Board of Directors, since 23 April 2020
Heiko Hutmacher (Chief Human Resources Officer
and Labour Director, until 31 October 2019)
Until 31 December 2019
a) METRO Großhandelsgesellschaft mbH2,
until 31 October 2019
real GmbH2, until 31 December 2019
METRO-NOM GmbH2 (Chairman), until
31 October 2019
b) None
Eric Poirier (Chief Operating Officer – Hospitality
Cluster)
Since 1 April 2020
a) None
b) Makro Cash and Carry Polska S. A.2,
Warsaw, Poland – Supervisory Board
METRO FSD France S.A.S.2, Montauban,
France – Board of Directors (Chairman), since
1 April 2020
Hospitality Digital GmbH2 – Advisory Board,
since 11 May 2020
METRO Holding France S. A.2, Vitry-sur-Seine,
France – Board of Directors (Chairman), since
1 April 2020
Philippe Palazzi (Chief Operating Officer)
Until 31 March 2020
a) None
b) Hospitality Digital GmbH2 – Advisory Board,
until 11 May 2020
METRO Holding France S. A.2, Vitry-sur-Seine,
France – Board of Directors (Chairman), until
31 March 2020
METRO FSD France S.A.S.2, Montauban,
France – Board of Directors (Chairman), until
31 March 2020
METRO Wholesale Myanmar Ltd.2, Rangoon,
Myanmar – Supervisory Board, until 10 June
2020
Classic Fine Foods Netherlands B. V.2,
Rotterdam, Netherlands – Board of Directors,
until 3 June 2020
a) Memberships in other statutory supervisory boards within the meaning of § 125 Section 1 Sentence 5, 1st alt. of the German Stock
Corporation Act (AktG).
b) Memberships in comparable German and international supervisory bodies of commercial enterprises within the meaning of § 125 Section 1
Sentence 5, 2nd alt. of the German Stock Corporation Act (AktG).
1 Listed company.
2 Intra-group mandate.
N O T E S
O T H E R  N O T E S
282
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

59. Affiliated companies of the group METRO AG as of 30 September 2020
pursuant to § 313 of the German Commercial Code
Name
Registered office
Country
Shares in
capital in %
Consolidated subsidiaries
2. Schaper Objekt GmbH & Co. Kiel KG
Düsseldorf
Germany
100.00
ADAGIO 2. Grundstücksverwaltungsgesellschaft mbH
Düsseldorf
Germany
100.00
ADAGIO 3. Grundstücksverwaltungsgesellschaft mbH
Düsseldorf
Germany
100.00
ADAGIO Grundstücksverwaltungsgesellschaft mbH
Düsseldorf
Germany
100.00
Adolf Schaper GmbH & Co. Grundbesitz-KG i. L.
Düsseldorf
Germany
100.00
AIB Verwaltungs GmbH
Düsseldorf
Germany
100.00
ARKON Grundbesitzverwaltung GmbH
Düsseldorf
Germany
100.00
ASSET Immobilienbeteiligungen GmbH
Düsseldorf
Germany
100.00
ASSET Köln-Kalk GmbH
Düsseldorf
Germany
100.00
Aubepine SARL
Châlette-sur-
Loing
France
100.00
Avilo Marketing Gesellschaft m. b. H.
Vösendorf
Austria
100.00
BAUGRU Immobilien - Beteiligungsgesellschaft mit beschränkter
Haftung & Co. Grundstücksverwaltung KG i. L.
Düsseldorf
Germany
100.00
Beijing Weifa Trading & Commerce Co. Ltd.
Beijing
China
100.00
CCG DE GmbH
Kelsterbach
Germany
100.00
CJSC METRO Management Ukraine
Kiev
Ukraine
100.00
Classic Coffee & Beverage Sdn Bhd
Kuala Lumpur
Malaysia
100.00
Classic Fine Foods (Hong Kong) Limited
Hong Kong
China
100.00
Classic Fine Foods (Macau) Ltd
Macao
China
99.80
Classic Fine Foods (Singapore) Private Limited
Singapore
Singapore
100.00
Classic Fine Foods (Thailand) Company Limited
Bangkok
Thailand
100.00
Classic Fine Foods (Thailand) Holding Company Limited
Bangkok
Thailand
49.00
Classic Fine Foods (Vietnam) Limited
Ho Chi Minh City
Vietnam
100.00
Classic Fine Foods China Holdings Limited
Hong Kong
China
100.00
Classic Fine Foods China Trading Limited
Hong Kong
China
100.00
Classic Fine Foods EM LLC
Abu Dhabi
United Arab
Emirates
50.00
Classic Fine Foods Group Limited
London
United Kingdom
100.00
Classic Fine Foods Holdings Limited
London
United Kingdom
100.00
Classic Fine Foods Japan Holdings
Tokyo
Japan
100.00
Classic Fine Foods Macau Holding Limited
Hong Kong
China
100.00
Classic Fine Foods Netherlands BV
Rotterdam
Netherlands
100.00
Classic Fine Foods Philippines Inc.
Makati
Philippines
100.00
Classic Fine Foods Rungis SAS
Rungis
France
100.00
Classic Fine Foods Sdn Bhd
Kuala Lumpur
Malaysia
100.00
Classic Fine Foods UK Limited
London
United Kingdom
100.00
Classic Fine Foodstuff Trading LLC
Abu Dhabi
United Arab
Emirates
49.00
Concarneau Trading Office SAS
Concarneau
France
100.00
COOL CHAIN GROUP PL Sp. z o.o.
Cracow
Poland
100.00
Culinary Agents Italia s.r.l.
San Donato
Milanese
Italy
100.00
N O T E S
O T H E R  N O T E S
283
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Deelnemingmaatschappij Arodema B.V.
Amsterdam
Netherlands
100.00
Deutsche SB-Kauf Beteiligungsverwaltung GmbH
Düsseldorf
Germany
100.00
Deutsche SB-Kauf GmbH & Co. KG
Düsseldorf
Germany
100.00
DFI Verwaltungs GmbH
Düsseldorf
Germany
100.00
Dinghao Foods (Shanghai) Co. Ltd.
Shanghai
China
100.00
Etablissements Blin SAS
Saint-Gilles
France
100.00
Fideco AG
Courgevaux
Switzerland
100.00
French F&B (Japan) Co., Ltd.
Tokyo
Japan
93.83
Freshly CR s.r.o.
Prague
Czech Republic
100.00
FZB Fachmarktzentrum Bous Verwaltungsgesellschaft mbH & Co. KG
i. L.
Düsseldorf
Germany
100.00
GBS Gesellschaft für Unternehmensbeteiligungen mbH
Düsseldorf
Germany
100.00
GKF 6. Objekt Vermögensverwaltungsgesellschaft mbH
Düsseldorf
Germany
100.00
GKF Grundstücks-Vermietungsgesellschaft mbH & Co. Objekt
Donaueschingen KG i. L.
Düsseldorf
Germany
100.00
GKF Grundstücks-Vermietungsgesellschaft mbH & Co.
Objekt Köln-Porz KG i. L.
Düsseldorf
Germany
100.00
GKF Grundstücksverwaltung GmbH & Co.
Objekt Groß-Zimmern KG i. L.
Düsseldorf
Germany
100.00
GKF Grundstücksverwaltung GmbH & Co. Objekt Norden KG i. L.
Düsseldorf
Germany
100.00
GKF Grundstücksverwaltungsgesellschaft mbH & Co. Objekt Schaper
Bremen-Habenhausen KG i. L.
Düsseldorf
Germany
100.00
GKF Grundstücksverwaltungsgesellschaft mbH & Co. Objekt
Wolfenbüttel KG i. L.
Düsseldorf
Germany
94.00
GKF Vermögensverwaltungsgesellschaft mbH
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. 10. Objekt-KG
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. 25. Objekt-KG
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. 8.
Objekt - KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co.
Entwicklungsgrundstücke KG
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co.
Gewerbegrundstücke KG
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Bannewitz
KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbh & Co. Objekt
Bitterfeld KG i. L.
Düsseldorf
Germany
94.90
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Bochum
Otto Straße KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt
Braunschweig Hamburger Straße KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Brühl KG
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co.
Objekt Duisburg KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co.
Objekt Emden KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt
Espelkamp KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt
Frankenthal KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt
Frankenthal-Studernheim KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Gäufelden
KG i. L.
Düsseldorf
Germany
100.00
N O T E S
O T H E R  N O T E S
284
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

GKF Vermögensverwaltungsgesellschaft mbH & Co.
Objekt Hamm KG
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Hannover
/ Davenstedter Straße KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Hannover
Fössestraße KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Hannover-
Linden KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Heinsberg
KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co.
Objekt Herten KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt
Hildesheim-Senking KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Hürth KG
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co.
Objekt Kassel KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbh & Co.
Objekt Krefeld KG i. L.
Düsseldorf
Germany
94.90
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt Kulmbach
KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt
Mönchengladbach ZV II KG
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt
Mönchengladbach-Rheydt KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co.
Objekt Nettetal KG
Düsseldorf
Germany
94.90
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt
Oldenburg KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt
Paderborn "Südring Center" KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt
Pfarrkirchen KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co.
Objekt Rastatt KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co.
Objekt Ratingen KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co. Objekt
Regensburg KG i. L.
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbH & Co.
Objekt Saar-Grund KG
Düsseldorf
Germany
100.00
GKF Vermögensverwaltungsgesellschaft mbh & Co.
Objekt Stralsund KG i. L.
Düsseldorf
Germany
94.90
GKF Vermögensverwaltungsgesellschaft mbH & Co.
Objekt Wülfrath KG i. L.
Düsseldorf
Germany
100.00
Goldhand Lebensmittel- u. Verbrauchsgüter-Vertriebsgesellschaft mit
beschränkter Haftung
Düsseldorf
Germany
100.00
GrandPari Limited Liability Company
Moscow
Russia
100.00
HoReCa Innovation I Carry GmbH & Co. KG
Düsseldorf
Germany
3.261
HoReCa Innovation I GmbH & Co. KG
Düsseldorf
Germany
100.00
HoReCa Innovation I Team GmbH & Co. KG
Düsseldorf
Germany
0.671
HoReCa Investment I Carry GmbH & Co. KG
Düsseldorf
Germany
3.321
HoReCa Investment I GmbH & Co. KG
Düsseldorf
Germany
100.00
HoReCa Investment I Team GmbH & Co. KG
Düsseldorf
Germany
0.071
HoReCa Investment Management GmbH
Düsseldorf
Germany
100.00
HoReCa Komplementär GmbH
Düsseldorf
Germany
100.00
N O T E S
O T H E R  N O T E S
285
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

HoReCa Strategic I Carry GmbH & Co. KG
Düsseldorf
Germany
4.261
HoReCa Strategic I GmbH & Co. KG
Düsseldorf
Germany
100.00
Horten Nürnberg GmbH
Düsseldorf
Germany
100.00
Hospitality Digital France SAS
Paris
France
100.00
Hospitality Digital GmbH
Düsseldorf
Germany
100.00
Hospitality Digital Services Germany GmbH
Düsseldorf
Germany
100.00
HOSPITALITY.digital, Inc.
Wilmington
USA
100.00
ICS METRO Cash & Carry Moldova S.R.L.
Chişinău
Moldova
100.00
Immobilien-Vermietungsgesellschaft von Quistorp GmbH & Co.
Objekt Altlandsberg KG
Düsseldorf
Germany
90.24
Inpakcentrale ICN B.V.
Duiven
Netherlands
100.00
Johannes Berg GmbH, Weinkellerei
Düsseldorf
Germany
100.00
Kaufhalle GmbH
Düsseldorf
Germany
100.00
Kaufhalle GmbH & Co. Objekt Lager Apfelstädt KG
Düsseldorf
Germany
100.00
Klassisk Group (S) Pte. Ltd.
Singapore
Singapore
100.00
Klassisk Investment Limited
Hong Kong
China
100.00
KUPINA Grundstücks-Verwaltungsgesellschaft mbH & Co. KG i. L.
Düsseldorf
Germany
100.00
LLC Ukrainian Wholesale Trade Company
Kiev
Ukraine
100.00
Makro Autoservicio Mayorista S. A. U.
Madrid
Spain
100.00
MAKRO Cash & Carry Belgium NV
Wommelgem
Belgium
100.00
MAKRO Cash & Carry CR s.r.o.
Prague
Czech Republic
100.00
Makro Cash & Carry Egypt LLC
Cairo
Egypt
100.00
Makro Cash & Carry Portugal S.A.
Lisbon
Portugal
100.00
Makro Cash & Carry UK Holding Limited
Manchester
United Kingdom
100.00
Makro Cash and Carry Polska S.A.
Warsaw
Poland
100.00
MAKRO Fulfillment SL
Madrid
Spain
100.00
Makro Ltd.
Manchester
United Kingdom
100.00
Makro Pension Trustees Ltd.
Manchester
United Kingdom
100.00
MCC Grundstücksverwaltungsgesellschaft mbH & Co. Objekt
Augsburg KG
Düsseldorf
Germany
94.90
MCC Grundstücksverwaltungsgesellschaft mbH & Co. Objekt Berlin-
Friedrichshain KG
Düsseldorf
Germany
100.00
MCC Grundstücksverwaltungsgesellschaft mbH & Co. Objekt
Hamburg-Altona KG
Düsseldorf
Germany
100.00
MCC Grundstücksverwaltungsgesellschaft mbH & Co. Objekt
München-Pasing KG
Düsseldorf
Germany
100.00
MCC Grundstücksverwaltungsgesellschaft mbH & Co.
Objekt Porta-Westfalica KG
Düsseldorf
Germany
100.00
MCC Grundstücksverwaltungsgesellschaft mbH & Co. Objekt Schwelm
KG
Düsseldorf
Germany
100.00
MCC Trading Deutschland GmbH
Düsseldorf
Germany
100.00
MCC Trading International GmbH
Düsseldorf
Germany
100.00
MCC Vermögensverwaltungsgesellschaft mbH & Co. Objekt
Ludwigshafen KG
Düsseldorf
Germany
94.90
MCCAP Holding GmbH
Vienna
Austria
100.00
MCCI Asia Pte. Ltd.
Singapore
Singapore
100.00
MDH Secundus GmbH & Co. KG
Düsseldorf
Germany
100.00
METRO Achte Verwaltungs GmbH
Düsseldorf
Germany
100.00
METRO Advertising GmbH
Düsseldorf
Germany
100.00
METRO Advertising Spółka z ograniczoną odpowiedzialnością
Warsaw
Poland
100.00
N O T E S
O T H E R  N O T E S
286
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

METRO Asia Investment GmbH
Düsseldorf
Germany
100.00
METRO Asia Investment Management Limited
Hong Kong
China
100.00
METRO Asset Management Services GmbH
Düsseldorf
Germany
100.00
METRO Białystok sp. z o.o.
Warsaw
Poland
100.00
METRO Bielsko-Biała sp. z o.o.
Warsaw
Poland
100.00
METRO Bydgoszcz sp. z o.o.
Warsaw
Poland
100.00
METRO Campus Services GmbH
Düsseldorf
Germany
100.00
METRO Cash & Carry Bulgaria EOOD
Sofia
Bulgaria
100.00
METRO Cash & Carry Central Asia Holding GmbH
Vienna
Austria
100.00
METRO Cash & Carry China Holding GmbH
Düsseldorf
Germany
100.00
METRO Cash & Carry d.o.o.
Zagreb
Croatia
100.00
METRO Cash & Carry d.o.o.
Belgrade
Serbia
100.00
METRO Cash & Carry Danmark ApS.
Glostrup
Denmark
100.00
METRO Cash & Carry Grundstücksverwaltungsgesellschaft mbH
Düsseldorf
Germany
100.00
METRO Cash & Carry Import Limited Liability Company
Noginsk
Russia
100.00
METRO Cash & Carry India Private Limited
Bangalore
India
100.00
METRO Cash & Carry International GmbH
Düsseldorf
Germany
100.00
METRO Cash & Carry International Holding B. V.
Amsterdam
Netherlands
100.00
METRO Cash & Carry International Holding GmbH
Vienna
Austria
100.00
METRO Cash & Carry Japan KK
Tokyo
Japan
100.00
METRO Cash & Carry Myanmar Holding GmbH
Vienna
Austria
100.00
METRO Cash & Carry Nederland B.V.
Amsterdam
Netherlands
100.00
METRO Cash & Carry OOO
Moscow
Russia
100.00
METRO Cash & Carry Österreich GmbH
Vösendorf
Austria
73.00
METRO CASH & CARRY ROMANIA SRL
Bucharest
Romania
100.00
METRO Cash & Carry Russia N.V.
Amsterdam
Netherlands
100.00
METRO Cash & Carry SR s.r.o.
Ivanka pri Dunaji
Slovakia
100.00
METRO Cash & Carry TOO
Almaty
Kazakhstan
100.00
METRO Cash & Carry Ukraine Ltd.
Kiev
Ukraine
100.00
METRO Cash & Carry Wines
Hyderabad
India
99.99
METRO Central East Europe GmbH
Vienna
Austria
100.00
METRO Częstochowa sp. z o.o.
Warsaw
Poland
100.00
METRO Delivery Service NV
Willebroek
Belgium
100.00
METRO Deutschland Consulting GmbH
Düsseldorf
Germany
100.00
METRO Deutschland GmbH
Düsseldorf
Germany
100.00
METRO Dienstleistungs-Holding GmbH
Düsseldorf
Germany
100.00
METRO Digital GmbH
Düsseldorf
Germany
100.00
METRO Distributie Nederland B. V.
Amsterdam
Netherlands
100.00
METRO DOLOMITI S.p.A.
San Donato
Milanese
Italy
100.00
METRO Dreizehnte Verwaltungs GmbH
Düsseldorf
Germany
100.00
METRO Dritte Verwaltungs GmbH
Düsseldorf
Germany
100.00
METRO Elfte Verwaltungs GmbH
Düsseldorf
Germany
100.00
METRO Erste Erwerbsgesellschaft mbH
Düsseldorf
Germany
100.00
METRO FIM S.p.A.
Cinisello Balsamo
Italy
100.00
METRO France Immobiliere S. a. r. l.
Nanterre
France
100.00
METRO France S.A.S.
Nanterre
France
100.00
N O T E S
O T H E R  N O T E S
287
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

METRO FSD France S.A.S.
Montauban
France
100.00
METRO FSD Holding GmbH
Düsseldorf
Germany
100.00
METRO Fulfillment GmbH
Düsseldorf
Germany
100.00
METRO Fünfte Verwaltungs GmbH
Düsseldorf
Germany
100.00
METRO GastroFinanz GmbH
Düsseldorf
Germany
100.00
METRO Gdańsk-Przejazdowo sp. z o.o.
Warsaw
Poland
100.00
METRO Gdynia sp. z o.o.
Warsaw
Poland
100.00
METRO Global Business Services Private Limited
Pune
India
100.00
METRO Grosmarket Bakirköy Alisveris Hizmetleri Ticaret Ltd. Sirketi
Istanbul
Turkey
100.00
METRO Groß- und Lebensmitteleinzelhandel Holding GmbH
Düsseldorf
Germany
100.00
METRO Großhandelsgesellschaft mbH
Düsseldorf
Germany
100.00
METRO GROUP Accounting Center GmbH
Düsseldorf
Germany
100.00
METRO Group Asset Management Ukraine, Limited Liability Company
Kiev
Ukraine
100.00
METRO Group Properties SR s.r.o.
Ivanka pri Dunaji
Slovakia
100.00
METRO Group Retail Real Estate Romania S.R.L.
Voluntari
Romania
100.00
METRO Group Wholesale Real Estate Bulgaria EOOD
Sofia
Bulgaria
100.00
METRO Holding France S. A.
Vitry-sur-Seine
France
100.00
METRO Hospitality Digital Holding GmbH
Düsseldorf
Germany
100.00
METRO Innovations Holding GmbH
Düsseldorf
Germany
100.00
METRO Insurance Broker GmbH
Düsseldorf
Germany
100.00
METRO International AG
Baar
Switzerland
100.00
METRO INTERNATIONAL SUPPLY GmbH
Düsseldorf
Germany
100.00
METRO Italia Cash and Carry S. p. A.
San Donato
Milanese
Italy
100.00
METRO Kalisz sp. z o.o.
Warsaw
Poland
100.00
METRO Kereskedelmi Kft.
Budaörs
Hungary
100.00
METRO Kielce sp. z o.o
Warsaw
Poland
100.00
METRO Kobierzyce sp. z o.o.
Warsaw
Poland
100.00
METRO Koszalin sp. z o.o.
Warsaw
Poland
100.00
METRO Kraków Jasnogórska sp. z o.o.
Warsaw
Poland
100.00
METRO Kraków Zakopiańska sp. z o.o.
Warsaw
Poland
100.00
METRO Leasing GmbH
Düsseldorf
Germany
100.00
METRO Leasing Objekt Schwerin GmbH
Düsseldorf
Germany
100.00
METRO Legnica sp. z o.o.
Warsaw
Poland
100.00
METRO Łódź sp. z o.o.
Warsaw
Poland
100.00
METRO LOGISTICS Germany GmbH
Düsseldorf
Germany
100.00
METRO Logistics Polska sp. z o.o.
Warsaw
Poland
100.00
METRO Logistics Polska spółka z ograniczoną odpowiedzialnością i
Spółka spółka komandytowa
Warsaw
Poland
99.83
METRO Lublin sp. z o.o.
Warsaw
Poland
100.00
METRO Management EOOD
Sofia
Bulgaria
100.00
METRO Markets GmbH
Düsseldorf
Germany
100.00
METRO Neunte Verwaltungs GmbH
Düsseldorf
Germany
100.00
METRO Olsztyn sp. z o.o.
Warsaw
Poland
100.00
METRO Opole Sp. z o.o.
Warsaw
Poland
100.00
METRO Pakistan (Pvt.) Limited
Lahore
Pakistan
100.00
METRO Payment Services GmbH
Düsseldorf
Germany
100.00
METRO Poznań II sp. z o.o.
Warsaw
Poland
100.00
N O T E S
O T H E R  N O T E S
288
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

METRO Poznań sp. z o.o.
Warsaw
Poland
100.00
METRO Properties B.V.
Amsterdam
Netherlands
100.00
METRO Properties CR s.r.o.
Prague
Czech Republic
100.00
METRO PROPERTIES France SAS
Nanterre
France
100.00
METRO Properties Gayrimenkul Yatirim A.Ş.
Istanbul
Turkey
100.00
METRO PROPERTIES GmbH & Co. KG
Düsseldorf
Germany
92.90
METRO PROPERTIES Holding GmbH
Düsseldorf
Germany
100.00
METRO PROPERTIES Management GmbH
Düsseldorf
Germany
66.67
METRO Properties Real Estate Management Spółka z ograniczoną
odpowiedzialnością
Warsaw
Poland
100.00
METRO PROPERTIES Sp. z o.o.
Warsaw
Poland
100.00
METRO Re AG
Düsseldorf
Germany
100.00
METRO Retail Real Estate GmbH
Düsseldorf
Germany
100.00
METRO Rybnik sp. z o.o.
Warsaw
Poland
100.00
METRO Rzeszów sp. z o.o.
Warsaw
Poland
100.00
METRO Rzgów sp. z o.o.
Warsaw
Poland
100.00
METRO SB-Großmärkte GmbH & Co. Kommanditgesellschaft
Esslingen am
Neckar
Germany
100.00
METRO SB-Großmärkte GmbH & Co. Kommanditgesellschaft
Linden
Germany
100.00
METRO Sechste Verwaltungs GmbH
Düsseldorf
Germany
100.00
METRO Services PL spółka z ograniczoną odpowiedzialnością
Szczecin
Poland
100.00
METRO Siebte Gesellschaft für Vermögensverwaltung mbH
Düsseldorf
Germany
100.00
METRO Siebte Verwaltungs GmbH
Düsseldorf
Germany
100.00
METRO Sosnowiec sp. z o.o.
Warsaw
Poland
100.00
METRO Sourcing (Shanghai) Co., Ltd.
Shanghai
China
100.00
METRO Sourcing International Limited
Hong Kong
China
100.00
METRO South East Asia Holding GmbH
Vienna
Austria
100.00
METRO Systems Romania S.R.L.
Bucharest
Romania
100.00
METRO Systems Ukraine LLC
Kiev
Ukraine
100.00
METRO Szczecin sp. z o.o.
Warsaw
Poland
100.00
METRO Toruń sp. z o.o.
Warsaw
Poland
100.00
METRO Vierte Verwaltungs GmbH
Düsseldorf
Germany
100.00
METRO Warehouse Noginsk Limited Liability Company
Noginsk
Russia
100.00
METRO Warszawa Jerozolimskie sp. z o.o.
Warsaw
Poland
100.00
METRO Warszawa Kolumbijska sp. z o.o.
Warsaw
Poland
100.00
METRO Wholesale & Food Services Vermögensverwaltung GmbH &
Co. KG
Düsseldorf
Germany
100.00
METRO Wholesale & Food Services Vermögensverwaltung
Management GmbH
Düsseldorf
Germany
100.00
METRO Wholesale Myanmar Ltd.
Rangoon
Myanmar
88.12
METRO Wholesale Real Estate GmbH
Düsseldorf
Germany
100.00
METRO Zabki sp. z o.o.
Warsaw
Poland
100.00
METRO Zabrze sp. z o.o.
Warsaw
Poland
100.00
METRO Zehnte Verwaltungs GmbH
Düsseldorf
Germany
100.00
METRO Zielona Góra sp. z o.o.
Warsaw
Poland
100.00
METRO Zwölfte Verwaltungs GmbH
Düsseldorf
Germany
100.00
METRO-nom GmbH
Düsseldorf
Germany
100.00
MGB METRO Group Buying RUS OOO
Moscow
Russia
100.00
MGC METRO Group Clearing GmbH
Düsseldorf
Germany
100.00
N O T E S
O T H E R  N O T E S
289
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

MGE Warenhandelsgesellschaft mbH
Düsseldorf
Germany
100.00
MGL METRO Group Logistics Bulgaria LTD
Sofia
Bulgaria
100.00
MGL METRO Group Logistics GmbH
Düsseldorf
Germany
100.00
MGL METRO Group Logistics Limited Liability Company
Noginsk
Russia
100.00
MGL METRO GROUP LOGISTICS UKRAINE LLC
Kiev
Ukraine
100.00
MGL METRO Group Logistics Warehousing Beteiligungs GmbH
Düsseldorf
Germany
100.00
MIP METRO Group Intellectual Property GmbH & Co. KG
Düsseldorf
Germany
100.00
MIP METRO Group Intellectual Property Management GmbH
Düsseldorf
Germany
100.00
MIP METRO Holding Management GmbH
Düsseldorf
Germany
100.00
MP Gayrimenkul Yönetim Hizmetleri Anonim Şirketi
Istanbul
Turkey
100.00
MTE Grundstücksverwaltung GmbH & Co. Objekt
Duisburg oHG i. L.
Düsseldorf
Germany
100.00
Multi-Center Warenvertriebs GmbH
Düsseldorf
Germany
100.00
My Mart (China) Trading Co., Ltd.
Guangzhou
China
100.00
My Mart (Shanghai) Trading Co. Ltd.
Shanghai
China
100.00
N & NF Trading GmbH
Düsseldorf
Germany
100.00
NIGRA Verwaltung GmbH & Co. Objekt Eschweiler KG i. L.
Düsseldorf
Germany
100.00
NIGRA Verwaltung GmbH & Co. Objekt Germersheim KG i. L.
Düsseldorf
Germany
100.00
NIGRA Verwaltung GmbH & Co. Objekt Langendreer KG i. L.
Düsseldorf
Germany
100.00
NIGRA Verwaltung GmbH & Co. Objekt Moers KG i. L.
Düsseldorf
Germany
100.00
NIGRA Verwaltung GmbH & Co. Objekt Neunkirchen KG
Düsseldorf
Germany
100.00
NIGRA Verwaltung GmbH & Co. Objekt Rendsburg KG i. L.
Düsseldorf
Germany
100.00
NX-Food GmbH
Düsseldorf
Germany
100.00
Petit RUNGIS express GmbH
Meckenheim
Germany
100.00
PIL Grundstücksverwaltung GmbH
Düsseldorf
Germany
100.00
PRO A PRO DISTRIBUTION EXPORT SAS
Montauban
France
100.00
PRO A PRO DISTRIBUTION NORD SAS
Châlette-sur-
Loing
France
100.00
PRO A PRO DISTRIBUTION SUD SAS
Montauban
France
100.00
PT Classic Fine Foods Indonesia
North Jakarta
Indonesia
100.00
Real Estate Management Misr Limited Liability Company
Cairo
Egypt
100.00
Remo Zaandam B.V.
Zaandam
Netherlands
100.00
Renate Grundstücksverwaltungsgesellschaft mbH
Düsseldorf
Germany
100.00
Restu s.r.o.
Prague
Czech Republic
100.00
Retail Property 5 Limited Liability Company
Moscow
Russia
100.00
Retail Property 6 Limited Liability Company
Moscow
Russia
100.00
R'EXPRESS ALIMENTOS, UNIPESSOAL LDA
Lisbon
Portugal
100.00
ROSARIA Grundstücks-Vermietungsgesellschaft mbH & Co. Objekt
Gerlingen KG i. L.
Düsseldorf
Germany
100.00
Rotterdam Trading Office B.V.
Amsterdam
Netherlands
100.00
RUDU Verwaltungsgesellschaft mbH
Düsseldorf
Germany
100.00
RUNGIS express GmbH
Meckenheim
Germany
100.00
RUNGIS express SPAIN SL
Palma de
Mallorca
Spain
100.00
RUNGIS express Suisse Holding AG
Courgevaux
Switzerland
100.00
RUTIL Verwaltung GmbH & Co. SB-Warenhaus Bielefeld KG i. L.
Düsseldorf
Germany
100.00
Schaper Beteiligungsverwaltung GmbH
Düsseldorf
Germany
100.00
Schaper Grundbesitz-Verwaltungsgesellschaft mbH
Düsseldorf
Germany
100.00
N O T E S
O T H E R  N O T E S
290
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Sentinel GCC Holdings Limited
Tortola
British Virgin
Islands
100.00
Servicios de Distribución a Horeca Organizada, S.L.
Madrid
Spain
100.00
Sezam XVI Fundusz Inwestycyjny Zamknięty Aktywów
Niepublicznych
Warsaw
Poland
100.00
Shenzhen Mymart Trade Co., Ltd.
Shenzhen
China
100.00
SIL Verwaltung GmbH & Co. Objekt Haidach KG
Düsseldorf
Germany
100.00
Sinco Großhandelsgesellschaft m. b. H.
Vösendorf
Austria
73.00
Sodeger SAS
Château-Gontier
France
100.00
Star Farm Pakistan Pvt. Ltd.
Lahore
Pakistan
100.00
STW Grundstücksverwaltung GmbH
Düsseldorf
Germany
100.00
TIMUG GmbH & Co. Objekt Homburg KG i. L.
Düsseldorf
Germany
94.00
TIMUG Verwaltung GmbH
Düsseldorf
Germany
100.00
Transpro France SARL
Montauban
France
100.00
Transpro SAS
La Possession
France
100.00
VALENCIA TRADING OFFICE, S.L.
Madrid
Spain
100.00
Weinkellerei Thomas Rath GmbH
Düsseldorf
Germany
100.00
Western United Finance Company Limited
London
United Kingdom
100.00
Wholesale Real Estate Belgium N.V.
Wommelgem
Belgium
100.00
Wolfgang Wirichs GmbH
Düsseldorf
Germany
100.00
WRE Real Estate Limited Liability Partnership
Almaty
Kazakhstan
100.00
ZARUS Verwaltung GmbH & Co. Objekt Mutterstadt KG i. L.
Düsseldorf
Germany
100.00
ZARUS Verwaltung GmbH & Co. Objekte Niedersachsen KG i. L.
Düsseldorf
Germany
100.00
Joint ventures
CABI-SFPK JV
Lahore
Pakistan
48.00
Intercompra LDA
Lisbon
Portugal
50.00
MAXXAM B.V.
Ede
Netherlands
16.67
MAXXAM C.V.
Ede
Netherlands
16.67
MEC METRO-ECE Centermanagement GmbH & Co. KG
Düsseldorf
Germany
50.00
MEC METRO-ECE Centermanagement Verwaltungs GmbH
Düsseldorf
Germany
50.00
METSPA Beszerzési és Kereskedelmi Kft.
Budaörs
Hungary
33.33
METSPA d.o.o. za trgovinu
Zagreb
Croatia
50.00
Professional Finance Technologies Limited Liability Company
Moscow
Russia
40.00
Investments accounted for using the equity method
EKS Handelsgesellschaft mbH
Salzburg
Austria
15.00
EKS Handelsgesellschaft mbH & Co. KG
Salzburg
Austria
15.00
Fachmarktzentrum Essen GmbH & Co. KG
Pullach im Isartal
Germany
94.00
FILPROMER SAS
Cherbourg-en-
Cotentin
France
24.90
Gourmet F&B Korea Ltd.
Seoul
South Korea
28.00
Habib METRO Pakistan (Pvt) Ltd
Karachi
Pakistan
40.00
Helm Wohnpark Lahnblick GmbH
Aßlar
Germany
25.00
Horizon International Services Sàrl
Le Grand-
Saconnex
Switzerland
25.00
Iniziative Methab s.r.l.
Bolzano
Italy
50.00
Kato Property GmbH
Berlin
Germany
5.10
N O T E S
O T H E R  N O T E S
291
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Mayfair GP S.à r.l.
Luxembourg
Luxembourg
40.00
Mayfair Holding Company S.C.S.
Luxembourg
Luxembourg
39.99
Napier Property GmbH
Berlin
Germany
5.10
OPCI FRENCH WHOLESALE PROPERTIES - FWP
Paris
France
5.00
OPCI FRENCH WHOLESALE STORES - FWS
Paris
France
25.00
Peter Glinicke Grundstücks-GmbH & Co. KG
Pullach im Isartal
Germany
50.00
Quadrant Property GmbH
Berlin
Germany
5.10
Sabra Property GmbH
Berlin
Germany
5.10
Tatra Property GmbH
Berlin
Germany
5.10
Upton Property GmbH
Berlin
Germany
5.10
Wilcox Property GmbH
Berlin
Germany
5.10
WM Holding (HK) Limited
Hong Kong
China
20.04
Xiali Property GmbH
Berlin
Germany
5.10
Zagato Property GmbH
Berlin
Germany
5.10
Zender Property GmbH
Berlin
Germany
5.10
Investments
BINARY SUBJECT, S.A.
Torres Vedras
Portugal
16.03
Culinary Agents Inc.
Wilmington
USA
18.33
Diehl & Brüser Handelskonzepte GmbH
Düsseldorf
Germany
100.002
eVentures Growth, L.P.
Wilmington
USA
5.00
Horizon Achats SARL
Paris
France
8.00
Horizon Appels d’Offres SARL
Paris
France
8.00
MATSMART IN SCANDINAVIA AB
Stockholm
Sweden
13.98
METRO plus Grundstücks-Vermietungsgesellschaft mbH
Düsseldorf
Germany
20.00
orderbird AG
Berlin
Germany
14.18
Planday A/S
Copenhagen
Denmark
11.74
QUANTIS Grundstücks-Vermietungsgesellschaft mbH & Co. Objekt
Darmstadt KG
Schönefeld
Germany
6.00
RTG Retail Trade Group GmbH
Hamburg
Germany
11.11
Shore GmbH
Munich
Germany
12.41
Verwaltungsgesellschaft Lebensmittelgesellschaft
"GLAWA" mbH & Co. KG
Hamburg
Germany
18.75
Yoyo Wallet Ltd.
London
United Kingdom
12.44
1 To be included in accordance with IFRS 10.
2 Not fully consolidated and not accounted for using the equity method due to immateriality to the asset, financial and earnings position.
1 December 2020
The Management Board
Olaf Koch
Christian Baier
Andrea Euenheim
Rafael Gasset
Eric Poirier
N O T E S
O T H E R  N O T E S
292
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

RESPONSIBILITY STATEMENT
OF THE LEGAL
REPRESENTATIVES
To the best of our knowledge, and in accordance with the applicable reporting principles, the
consolidated financial statements give a true and fair view of the asset, financial and earnings
position of the group, and the combined management report includes a fair review of the
development and performance of the business and the position of the group, together with a
description of the significant opportunities and risks associated with the expected development
of the group.
1 December 2020
The Management Board
Olaf Koch
Christian Baier
Andrea Euenheim
Rafael Gasset
Eric Poirier
R E S P O N S I B I L I T Y  S TAT E M E N T  O F  T H E  L E G A L  R E P R E S E N TA T I V E S
293
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

INDEPENDENT AUDITOR’S
REPORT
To METRO AG, Düsseldorf
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL
STATEMENTS AND OF THE COMBINED MANAGEMENT REPORT
Opinions
We have audited the consolidated financial statements of METRO AG, Düsseldorf, and its
subsidiaries (the Group), which comprise the consolidated balance sheet as at 30 September
2020, the consolidated income statement, the consolidated statement of comprehensive income,
consolidated statement of changes in equity and consolidated cash flow statement for the
financial year from 1 October 2019 to 30 September 2020, and notes to the consolidated
financial statements, including a summary of significant accounting policies. In addition, we have
audited the management report of METRO AG and the Group (hereinafter "combined
management report") for the financial year from 1 October 2019 to 30 September 2020.
In accordance with German legal requirements, we have not audited the content of those
components of the combined management report specified in the "Other Information" section of
our auditor's report.
In our opinion, on the basis of the knowledge obtained in the audit,
the accompanying consolidated financial statements comply, in all material respects, with the
IFRSs as adopted by the EU, and the additional requirements of German commercial law
pursuant to Section 315e (1) HGB [Handelsgesetzbuch: German Commercial Code] and, in
compliance with these requirements, give a true and fair view of the assets, liabilities, and
financial position of the Group as at 30 September 2020, and of its financial performance for
the financial year from 1 October 2019 to 30 September 2020, and
the accompanying combined management report as a whole provides an appropriate view of
the Group's position. In all material respects, this combined management report is consistent
with the consolidated financial statements, complies with German legal requirements and
appropriately presents the opportunities and risks of future development. Our opinion on the
combined management report does not cover the content of those components of the
combined management report specified in the "Other Information" section of the auditor's
report.
Pursuant to Section 322 (3) sentence 1 HGB, we declare that our audit has not led to any
reservations relating to the legal compliance of the consolidated financial statements and of the
combined management report.
I N D E P E N D E N T  A U D I T O R ’ S  R E P O R T
294
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Basis for the Opinions
We conducted our audit of the consolidated financial statements and of the combined
management report in accordance with Section 317 HGB and the EU Audit Regulation No 537/
2014 (referred to subsequently as "EU Audit Regulation") and in compliance with German
Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der
Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). We performed the audit of
the consolidated financial statements in supplementary compliance with the International
Standards on Auditing (ISAs). Our responsibilities under those requirements, principles and
standards are further described in the "Auditor's Responsibilities for the Audit of the
Consolidated Financial Statements and of the Combined Management Report" section of our
auditor's report. We are independent of the group entities in accordance with the requirements
of European law and German commercial and professional law, and we have fulfilled our other
German professional responsibilities in accordance with these requirements. In addition, in
accordance with Article 10 (2)(f) of the EU Audit Regulation, we declare that we have not
provided non-audit services prohibited under Article 5 (1) of the EU Audit Regulation. We
believe that the evidence we have obtained is sufficient and appropriate to provide a basis for
our opinions on the consolidated financial statements and on the combined management report.
Key Audit Matters in the Audit of the Consolidated Financial Statements
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the consolidated financial statements for the financial year from
1 October 2019 to 30 September 2020. These matters were addressed in the context of our audit
of the consolidated financial statements as a whole, and in forming our opinion thereon, we do
not provide a separate opinion on these matters.
Sale of hypermarket activities
For the accounting policies applied, we refer to the disclosures in the notes in the section "Notes to the group
accounting principles and methods
page 151 ". Disclosures on the subsequent measurement of the IFRS 5 disposal
group up until deconsolidation and on the deconsolidation of the discontinued operation of the hypermarket
activities can be found in the notes to the consolidated financial statements under Note 43
page 236 .
The financial statement risk
In an ad hoc announcement pursuant to Article 17 (1) of the EU Market Abuse Regulation [MAR]
on 13 September 2018, the Management Board of METRO AG announced that it was starting the
process of selling the Real retail business including the associated business activities, as well as
the real estate portfolio that is used as part of the hypermarket business and is under METRO's
ownership. The hypermarket operations had since then been classified as disposal group and
discontinued operation pursuant to IFRS 5.
By purchase agreement dated 18 February 2020, METRO sold the majority of the
hypermarket activities to the SCP Group S.a r.l. ('SCP Group'). The sale was concluded on 25/
26 June 2020 after all approvals had been obtained from the competent regulatory and
competition authorities. Taking into account costs of disposal, there was a negative sales
proceeds after taxes of EUR −627 million, which, together with the current earnings (after taxes)
of EUR 213 million, was presented under discontinued operations.
The presentation of the deconsolidation in the consolidated financial statements and the
calculation of the sales proceeds are complex and subject to judgement.
I N D E P E N D E N T  A U D I T O R ’ S  R E P O R T
295
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

There is a risk for the consolidated financial statements that the presentation of the
deconsolidation in the consolidated financial statements and the calculation of the sales
proceeds are not appropriate. There is a further risk that the disclosures in the notes to the
consolidated financial statements as required by IFRS 5 up until disposal are not appropriate.
Our audit approach
As part of our audit, we first assessed whether the conditions for deconsolidation according to
IFRS 10 had been fulfilled. We then assessed which assets and liabilities were to be considered
as part of the deconsolidation. To this end we evaluated the contractual arrangements, held
meetings with the responsible people involved in the sales transaction and assessed the
technical IT implementation of the deconsolidation in the consolidation system. We
subsequently evaluated whether the assets and liabilities disposed of had been completely and
correctly derecognised and whether the sales proceeds had been appropriately calculated and
entered in the accounts. We reconciled the determination of the purchase price with the
contractual arrangements. To this end, we inspected and evaluated the underlying
documentation, verified the calculation of the purchase price methodically and computationally
based on the contractually agreed purchase price mechanism and reconciled the incoming
payments with the account statements.
Finally, we assessed whether the disclosures required by IFRS 5 up until deconsolidation and
the disclosures in the notes to the consolidated financial statements on the disposal were
appropriate.
Our observations
The approach underlying the presentation of the deconsolidation in the consolidated financial
statements and the calculation of the deconsolidation proceeds is appropriate. The disclosures
required by IFRS 5 up until deconsolidation and the disclosures in the notes to the consolidated
financial statements on the disposal are appropriate.
Impairment testing of goodwill
For the accounting policies applied, we refer to the disclosures in the notes in the section "Notes to the group
accounting principles and methods
page 151 ". Disclosures on the development of goodwill as well as impairment
testing can be found in Note 19
page 185 to the consolidated financial statements. We also refer to Note 6
page 176 on the impairment of goodwill.
The financial statement risk
Goodwill in the amount of EUR 731 million was reported in the consolidated financial statements
of METRO AG as at 30 September 2020. Goodwill is allocated pursuant to IAS 36 to groups of
cash-generating units that are expected to benefit from the business combination in which the
goodwill arose. These units are the organisational units for each country for METRO.
Goodwill is tested for impairment annually and as required. The starting point for identifying
any impairment loss is the recoverable amount, which at METRO generally corresponds to fair
value less the costs to sell and is compared with the respective carrying amount of the group of
cash-generating units. In doing so, fair value is measured according to the discounted cash flow
method. The reporting date for impairment testing is 30 June 2020.
Impairment testing is based on cash flow planning, the starting point of which is the multi-
year plan prepared by METRO. Future cash flows are discounted using the weighted average
cost of capital of the groups of respective cash-generating units.
The result of this impairment testing is highly dependent upon estimates of future cash flows
as well as the cost of capital used and therefore subject to considerable uncertainty. The
I N D E P E N D E N T  A U D I T O R ’ S  R E P O R T
296
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Covid-19 pandemic, which has been spreading worldwide since January 2020, has significantly
increased the degree of estimation uncertainty with regard to underlying future cash flows. The
Management Board is responsible for assessing the future effects of the Covid-19 pandemic on
business activities and appropriately accounting for these in cash flow planning. There is a risk
for the financial statements that impairment losses are not recognised or are recognised too late
and that the expected effects of the Covid-19 pandemic on business performance are not
appropriately illustrated in the impairment testing.
In addition, IAS 36 requires extensive disclosures in the notes to the financial statements,
particularly also in terms of METRO's consideration of the potential sensitivity of material
measurement assumptions and parameters. There is the risk that the disclosures in the notes are
not complete and adequate.
Our audit approach
Our audit, which we carried out with the involvement of our own valuation experts, included,
among others, assessing the appropriateness of the valuation model underlying impairment
testing, particularly in terms of the accounting policies used as well as formal and computational
accuracy.
We confirmed the appropriateness of the future cash flows used in the calculation, among
others, by comparing this information to the current budget figures in the multi-year plan
prepared by METRO as well as through comparison with general and industry-specific market
expectations. There was special attention required this year for the analysis of the potential
future effects of the Covid-19 pandemic. Owing to Covid-19, METRO has prepared multi-year
planning based on scenarios. In this regard, we also confirmed the appropriateness of METRO's
budget process. Furthermore, we assessed the appropriateness of the long-term growth rates
assumed and the sustainable write-down and reinvestment amounts. In addition, we critically
analysed previous adherence to the budget on the basis of past target/actual deviations
prepared by METRO. We also discussed the multi-year plan with those responsible for the
budget, paying particular regard to improvements in operating profitability in the detailed
planning period.
In view of the very high sensitivity of the calculated fair values to changes in the cost of
capital, we rigorously examined – by taking into account country-specific particulars – the
underlying assumptions and parameters for the cost of capital, especially the risk-free rate,
market risk premium and beta coefficient, and assessed the calculation formula for
computational and formal accuracy. Based on the sensitivity analyses carried out by METRO, we
examined to what extent a reasonably possible change to the assumptions underlying the
calculation could require recognising an impairment loss.
We also audited the completeness and adequacy of the disclosures in the notes to the
consolidated financial statements pursuant to IAS 36.
I N D E P E N D E N T  A U D I T O R ’ S  R E P O R T
297
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Our observations
The valuation model used for impairment testing is appropriate and in line with applicable IFRS
accounting policies. Moreover, the measurement assumptions and parameters used by METRO
are within an appropriate range and are reasonable. The disclosures in the notes are accurate.
Impairment testing of land, buildings and right-of-use assets
For the accounting policies applied, we refer to the disclosures in the notes in the section "Notes to the group
accounting principles and methods
page 151 ". Disclosures on movements in property, plant and equipment are
provided under Note 21
page 189 in the notes. We also refer to Note 15
page 181 in the notes on depreciation
of property, plant and equipment.
The financial statement risk
The consolidated financial statements of METRO as at 30 September 2020 report land and
buildings with a carrying amount of EUR 3,728 million and right-of-use assets (according to
IFRS 16) with a carrying amount of EUR 2,084 million, which includes EUR 1,947 million relating
to land and buildings. In the year under review, impairment losses of EUR 12 million were
recognised.
In accordance with IAS 36, real estate and right-of-use assets must be tested for impairment
if there are any indications of potential impairment. Operating performance and the real estate
market are relevant indicators of potential impairment. Pursuant to IAS 36, the carrying amount
of the affected cash-generating unit must be compared with its recoverable amount for
impairment testing purposes. The recoverable amount of a cash-generating unit is the higher of
its fair value less costs to sell and its value in use. METRO regularly carries out impairment tests
based on fair value less costs to sell. The basis for measurement is the present value of the
future cash flows of the cash-generating unit, which is determined using the discounted cash
flow method. Impairment testing is based on the cash flow planning of the cash-generating unit.
The Covid-19 pandemic, which has been spreading worldwide since January 2020, has
significantly increased the degree of estimation uncertainty with regard to underlying future
cash flows. The Management Board is responsible for assessing the future effects of the Covid-19
pandemic on business activities and appropriately accounting for these in cash flow planning.
This measurement is highly dependent upon the estimates of future cash flows as well as the
interest rates used and therefore subject to considerable uncertainty. There is a risk that
necessary impairment losses are not recognised or are recognised too late and that the
expected effects of the Covid-19 pandemic on business performance are not appropriately
illustrated in the impairment testing.
Our audit approach
The starting point for our audit were the indications of impairment of land, buildings and right-
of-use assets identified by METRO. We initially assessed which land, buildings and right-of-use
assets indicated impairment using information obtained in the course of our audit.
Our audit, which we carried out with the involvement of our own valuation experts, included,
among others, assessing the appropriateness of the valuation models underlying impairment
testing, particularly in terms of the accounting policies used as well as formal and computational
accuracy. We confirmed the appropriateness of the future cash flows and market rents used in
the calculation, among others, by comparing this information with the current budget figures as
well as through comparison with general and use-specific market data. There was special
attention required this year for the analysis of the potential effects of the Covid-19 pandemic. In
addition, we addressed the cost of capital as well as real-estate-specific discount and
I N D E P E N D E N T  A U D I T O R ’ S  R E P O R T
298
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

capitalisation rates. In addition, we critically analysed previous adherence to the budget on the
basis of past target/actual deviations prepared by METRO.
Our observations
The indications of impairment of land, buildings and right-of-use assets were appropriately
identified. The valuation models used for impairment testing are appropriate and in line with the
applicable accounting policies. Moreover, the measurement assumptions and parameters used
are appropriate and reasonable.
First-time application of the new financial reporting standard "IFRS 16 – Leases"
For the accounting policies applied, we refer to the disclosures in the notes in the section "Notes to the group
accounting principles and methods
page 151 ". Disclosures on the first-time application of IFRS 16 can be found
under Note 47
page 250 in the notes to the consolidated financial statements.
The financial statement risk
As at 30 September 2020, right-of-use assets of EUR 2,084 million and lease liabilities of
EUR 3,027 million are recognised in the consolidated financial statements of METRO. Lease
liabilities account for 22.9 % of total equity and liabilities and thus have a material effect on the
Company's assets, liabilities and financial position.
METRO uses the fully retrospective approach to apply the new financial reporting standard
"IFRS 16 – Leases". The first-time application has an impact on the opening balance sheet of the
comparative period as at 1 October 2018 and its updating in the comparative period ending as at
30 September 2019, as well as on the current financial year ending as at 30 September 2020.
The transition effect of EUR −831 million as at 1 October 2018 was recorded in retained earnings
taking into account deferred taxes. Due to the high volume of leases and the resulting
transactions, the Company set up processes and controls for the full and appropriate, initial and
ongoing recognition of leases according to IFRS 16.
Retrospective determination of the lease term, the amount of the lease payments and the
discount rate requires judgement and is based on estimates. Furthermore, calculating the effect
of initial IFRS 16 application requires the recording of extensive data from lease agreements.
There is a risk for the consolidated financial statements that the right-of-use assets and lease
liabilities are not recorded in full in the balance sheet. There is a further risk that the right-of-use
assets and lease liabilities are not measured appropriately.
There is also a risk that the disclosures required by IFRS 16 in conjunction with IAS 8 on the
effects of first-time application of IFRS 16 are not complete and appropriate.
I N D E P E N D E N T  A U D I T O R ’ S  R E P O R T
299
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Our audit approach
First, we gained an understanding of the process used by METRO to implement IFRS 16. We then
evaluated the technical concept and accounting instructions underlying the implementation in
terms of completeness and compliance with IFRS 16.
We assessed the appropriateness, setup and effectiveness of controls established by METRO
to ensure the full and correct determination of the data to measure the right-of-use assets and
lease liabilities. Where IT processing systems were used to determine and collect relevant data,
with the involvement of our IT specialists we tested the effectiveness of the rules and
procedures that relate to IT applications and support the effectiveness of application controls.
For some lease agreements selected as a representative sample and some selected based on
risk criteria, we assessed whether the relevant data was correctly and fully determined and
entered in the IT processing systems. Where accounting judgements were made for determining
the incremental borrowing rate and the lease term, we examined whether – in light of the
prevailing company and market conditions – the underlying assumptions were comprehensible
and consistent with other assumptions made in the financial statements.
With the involvement of our valuation experts, we compared the assumptions and parameters
underlying the incremental borrowing rates with our own assumptions and publicly available
data. We also evaluated the appropriateness of the method to calculate the discount rate based
on risk criteria.
For the leases in the selection detailed above, we verified the computational accuracy of the
values of the right-of-use assets and lease liabilities determined by METRO from the leases.
Furthermore, we assessed whether the disclosures required pursuant to IFRS 16 in
conjunction with IAS 8 concerning the effects of the first-time application of IFRS 16 in the notes
to the consolidated financial statements were complete and appropriate.
Our observations
METRO has established appropriate procedures to record leases for the purposes of first-time
application of IFRS 16. The assumptions and parameters used to measure the right-of-use assets
and lease liabilities from leases are appropriate overall.
The disclosures in the notes to the consolidated financial statements concerning the effects
of the first-time application of IFRS 16 are complete and appropriate.
Other Information
The Management Board and the Supervisory Board, respectively, are responsible for the other
information. The other information comprises the following components of the combined
management report, whose content was not audited:
the combined non-financial statement for the Company and the Group, which is contained in
Section 2.4 of the combined management report, and
the combined corporate governance statement for the Company and the Group referred to in
the combined management report.
The other information also includes the remaining parts of the annual report. The other
information does not include the consolidated financial statements, the combined management
report information audited for content and our auditor's report thereon.
Our opinions on the consolidated financial statements and on the combined management
report do not cover the other information, and consequently we do not express an opinion or
any other form of assurance conclusion thereon.
I N D E P E N D E N T  A U D I T O R ’ S  R E P O R T
300
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

In connection with our audit, our responsibility is to read the aforementioned other
information and, in so doing, to consider whether the other information
is materially inconsistent with the consolidated financial statements, with the combined
management report information audited for content or our knowledge obtained in the audit,
or
otherwise appears to be materially misstated.
Responsibilities of the Management Board and the Supervisory Board for the
Consolidated Financial Statements and the Combined Management Report
The Management Board is responsible for the preparation of consolidated financial statements
that comply, in all material respects, with IFRSs as adopted by the EU, and the additional
requirements of German commercial law pursuant to Section 315e (1) HGB and that the
consolidated financial statements, in compliance with these requirements, give a true and fair
view of the assets, liabilities, financial position, and financial performance of the Group. In
addition, the Management Board is responsible for such internal control as they have determined
necessary to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Management Board is responsible for
assessing the Group's ability to continue as a going concern. They also have the responsibility
for disclosing, as applicable, matters related to going concern. In addition, they are responsible
for financial reporting based on the going concern basis of accounting unless there is an
intention to liquidate the Group or to cease operations, or there is no realistic alternative but to
do so.
Furthermore, the Management Board is responsible for the preparation of a combined
management report that, as a whole, provides an appropriate view of the Group's position and
is, in all material respects, consistent with the consolidated financial statements, complies with
German legal requirements, and appropriately presents the opportunities and risks of future
development. In addition, the Management Board is responsible for such arrangements and
measures (systems) as they have considered necessary to enable the preparation of a combined
management report that is in accordance with the applicable German legal requirements, and to
be able to provide sufficient appropriate evidence for the assertions in the combined
management report.
The Supervisory Board is responsible for overseeing the Group's financial reporting process
for the preparation of the consolidated financial statements and of the combined management
report.
I N D E P E N D E N T  A U D I T O R ’ S  R E P O R T
301
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
and of the Combined Management Report
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and
whether the combined management report as a whole provides an appropriate view of the
Group's position and, in all material respects, is consistent with the consolidated financial
statements and the knowledge obtained in the audit, complies with the German legal
requirements and appropriately presents the opportunities and risks of future development, as
well as to issue an auditor's report that includes our opinions on the consolidated financial
statements and on the combined management report.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Section 317 HGB and the EU Audit Regulation and in compliance
with German Generally Accepted Standards for Financial Statement Audits promulgated by the
Institut der Wirtschaftsprüfer (IDW) and supplementary compliance with the ISAs will always
detect a material misstatement. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these consolidated financial statements and
this combined management report.
We exercise professional judgement and maintain professional scepticism throughout the
audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial
statements and of the combined management report, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal controls.
Obtain an understanding of internal control relevant to the audit of the consolidated financial
statements and of arrangements and measures (systems) relevant to the audit of the
combined management report in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of these
systems.
Evaluate the appropriateness of accounting policies used by the Management Board and the
reasonableness of estimates made by the Management Board and related disclosures.
Conclude on the appropriateness of the Management Board's use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Group's ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in the auditor's report to the related disclosures in the
consolidated financial statements and in the combined management report or, if such
disclosures are inadequate, to modify our respective opinions. Our conclusions are based on
the audit evidence obtained up to the date of our auditor's report. However, future events or
conditions may cause the Group to cease to be able to continue as a going concern.
I N D E P E N D E N T  A U D I T O R ’ S  R E P O R T
302
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
present the underlying transactions and events in a manner that the consolidated financial
statements give a true and fair view of the assets, liabilities, financial position and financial
performance of the Group in compliance with IFRSs as adopted by the EU and the additional
requirements of German commercial law pursuant to Section 315e (1) HGB.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express opinions on the consolidated financial
statements and on the combined management report. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our
opinions.
Evaluate the consistency of the combined management report with the consolidated financial
statements, its conformity with [German] law, and the view of the Group's position it
provides.
Perform audit procedures on the prospective information presented by the Management
Board in the combined management report. On the basis of sufficient appropriate audit
evidence we evaluate, in particular, the significant assumptions used by the Management
Board as a basis for the prospective information, and evaluate the proper derivation of the
prospective information from these assumptions. We do not express a separate opinion on
the prospective information and on the assumptions used as a basis. There is a substantial
unavoidable risk that future events will differ materially from the prospective information.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
the relevant independence requirements, and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, the
related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the consolidated financial statements of
the current period and are therefore the key audit matters. We describe these matters in our
auditor's report unless law or regulation precludes public disclosure about the matter.
I N D E P E N D E N T  A U D I T O R ’ S  R E P O R T
303
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

OTHER LEGAL AND REGULATORY REQUIREMENTS
Further Information pursuant to Article 10 of the EU Audit Regulation
We were elected as auditor at the Annual General Meeting on 14 February 2020 and engaged by
the Supervisory Board on the same date. We have been the group auditor of METRO AG without
interruption since financial year 2016/2017.
We declare that the opinions expressed in this auditor's report are consistent with the
additional report to the audit committee pursuant to Article 11 of the EU Audit Regulation (long-
form audit report).
German Public Auditor Responsible for the Engagement
The German Public Auditor responsible for the engagement is Dr Thorsten Hain.
Düsseldorf, 1 December 2020
KPMG AG
Wirtschaftsprüfungsgesellschaft
Dr Hain
Auditor
Klaaßen
Auditor
I N D E P E N D E N T  A U D I T O R ’ S  R E P O R T
304
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

GLOSSARY
306
FINANCIAL CALENDAR
2020/21
312
INFORMATION
313

GLOSSARY
A
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).
Audit
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.
C
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.
Compliance
All measures specifying compliance with legal
requirements as well as social guidelines and
values by a company and its employees.
Currency effects
Currency effects result from situations where
the same amount of currency units is
translated into another currency at differing
exchange rates.
D
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.
Diversity management
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.
S E R V I C E
G L O S S A R Y
306
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

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.
E
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.
F
Fair value
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.
Food, non-food
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.
Franchising
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.
S E R V I C E
G L O S S A R Y
307
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Free cash flow conversion
(Adjusted EBITDA − leasing-payments − cash
investments (excluding mergers and
acquisitions) +/− changes in net working
capital) / (adjusted EBITDA − leasing-
payments).
G
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.
GLOBALGAP
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.
Governance
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.
H
HoReCa
Short for hotel, restaurant and catering
businesses. The HoReCa segment is an
important customer group for METRO.
I
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).
IFRIC
Interpretation on IFRS prepared by the IFRS
Interpretations Committee (or its predecessor)
and approved by the IASB.
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.
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.
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.
S E R V I C E
G L O S S A R Y
308
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

L
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.
M
Mark-to-market valuation
Calculation of the fair value of financial
instruments on the basis of market prices at a
particular assessment date.
N
Net debt
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.
O
Omnichannel retail
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.
Own brands
Trademark-protected brand-name products
developed by a retail company with an
attractive best price/performance ratio.
P
Performance share
As part of performance-related participation
agreements, a performance share entitles its
owner to a cash payment matching the share
price.
Previous year
Period of 12 months relating to the financial
year preceding the reporting year, usually
cited as reference for statements in an annual
report.
R
Rating
In the financial sector, rating represents the
systematic, qualitative measurement of
creditworthiness. Ratings are expressed in
S E R V I C E
G L O S S A R Y
309
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

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.
S
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.
SME services
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.
Social compliance
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.
Start-up company
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.
T
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.
S E R V I C E
G L O S S A R Y
310
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

Traders
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.
Transformation costs
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.
W
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.
S E R V I C E
G L O S S A R Y
311
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

FINANCIAL CALENDAR
2020/21
10 February 2021
Quarterly statement Q1 2020/21
19 February 2021
Annual General Meeting 2021
4 May 2021
Half-year financial report H1/Q2 2020/21
28 July 2021
Quarterly statement 9M/Q3 2020/21
S E R V I C E
F I N A N C I A L  C A L E N D A R  2 0 2 0 / 2 1
312
M E T R O A N N U A L  R E P O R T  2 0 1 9 / 2 0

INFORMATION
Publisher
METRO AG
Metro-Straße 1
40235 Düsseldorf, Germany
PO Box 23 03 61
40089 Düsseldorf, Germany
METRO on the Internet
www.metroag.de
Investor Relations
T +49 211 6886-1280
F +49 211 6886-73-3759
investorrelations@metro.de
Corporate Communications
T +49 211 6886-4252
F +49 211 6886-2001
presse@metro.de
Project lead,
concept and editorial
Katharina Meisel
Project management
Malte Hendriksen
Viktoria Rous
Graphic Design
Strichpunkt GmbH, Stuttgart/Berlin
Concept, design and realisation
(Online & PDF)
nexxar GmbH, Vienna, Austria
Editorial support
Ketchum GmbH, Düsseldorf,
Germany
Photography
Henning Ross: pp. 5, 10, 11, 12
Photo credits
METRO AG
Certifications
Disclaimer
This annual report contains forward-looking statements that are based on certain assumptions and expectations at
the time of its publication. These statements are therefore subject to risks and uncertainties, which means that
actual results may differ substantially from the future-oriented statements made here. Many of these risks and
uncertainties relate to factors that are beyond METRO’s ability to control or estimate precisely. This includes future
market conditions and economic developments, the behaviour of other market participants, the achievement of
expected synergy effects as well as legal and political decisions. METRO does not undertake any obligation to
publicly correct or update these forward-looking statements to reflect events or circumstances that have occurred
after the publication date of this material. The trade names and trademarks used in the annual report, which may
be protected by third parties, are subject without restriction to the regulations associated with the applicable
trademark laws and ownership rights of their respective registered owners. The copyright for any published
objects created by METRO AG remains the property of METRO AG. Any duplication or use of such graphics, video
sequences and texts in other electronic or printed publications is prohibited without the explicit permission of
METRO AG.
Published on 14 December 2020

You can find the Annual Report 2019/20 online at
REPORTS.METROAG.DE/ANNUAL-REPORT/2019-2020