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Sayfa başlığıMETRO Group with record revenue and record earnings – dividend increase proposed

21.03.2007

METRO Group with record revenue and record earnings – dividend increase proposed

• Sales increased by 7.5 percent to around € 60 billion in 2006
• EBIT grows by 14.1 percent to € 1.98 billion – excluding special items, EBIT increases by 9.9 percent
• EPS rise to € 3.23 – adjusted EPS up 7.0 percent to € 2.64
• Dividend increase from € 1.02 to € 1.12 proposed
• Net debt reduced by € 630 million
• METRO Group expects to boost sales by 8 to 9 percent in 2007 and EBIT by 6 to 8 percent

The METRO Group once again delivered strong gains in sales and earnings in financial year 2006. Group sales rose by 7.5 percent to around € 60 billion, and EBIT climbed to nearly € 2 billion. Earnings per share jumped from € 1.63 to € 3.23. Adjusted for special effects, EPS rose by 7 percent to € 2.64.

"The year 2006 was our strongest growth year since 1998. We significantly strengthened our position among the leading and largest international trade and retail companies. Given our good business results and the successful market placement of our remaining stake in Praktiker, we will propose a dividend increase from € 1.02 to € 1.12 per share of common stock to the annual general meeting," Dr. Hans-Joachim Körber, CEO of the METRO Group, said in releasing the figures for 2006. The dividend per share of preferred stock is to rise from € 1.122 to € 1.232.

Earnings before interest, taxes, depreciation and amortization (EBITDA) climbed by 10.1 percent to € 3.23 billion. At € 1.98 billion, EBIT was 14.1 percent higher than in the previous year. Adjusted for the repositioning of Real (including the acquisitions of Wal-Mart Germany and Géant Poland), EBIT rose by 9.9 percent to € 1.91 billion. "Our strategy of profitable growth and the sustainable improvement of the company value is extremely successful," Dr. Körber said. "In 2006, more than 50 percent of our sales and about two-thirds of our earnings were generated abroad. With the market entry of Metro Cash & Carry into Pakistan and Media Markt into Turkey, we will continue to extend the METRO Group’s international operations this year."

The METRO Group’s economic value added (EVA) climbed notably in 2006. EVA reached € 426 million compared with € 305 million in the previous year. Metro Cash & Carry as well as Media Markt and Saturn once again recorded a significant improvement in EVA over the previous year.

The METRO Group’s investments totaled around € 3 billion in 2006, exceeding the previous year’s figure by 0.9 billion. Adjusted for acquisitions, investments amounted to about € 2 billion.

As a result of the METRO Group’s successful expansion, the number of employees continued to rise. An average of about 264,000 people worked for the group in 2006.

Divisional business developments

Metro Cash & Carry continues to expand its international presence

The Metro Cash & Carry sales division once again proved itself to be the growth driver within the METRO Group. It boosted sales by 6.5 percent to € 29.9 billion. A total of 41 new stores were opened – including 24 in Eastern Europe. At the end of 2006, Metro Cash & Carry operated 584 stores in 28 countries. In its international business, Metro Cash & Carry generated an increase of 8.4 percent in sales to € 24.2 billion. The sales division achieved significant increases in sales in Eastern Europe (+15 percent) and in Asia/Africa (+21.5 percent). EBIT at Metro Cash & Carry rose by 9.7 percent to € 1.1 billion.

Real strengthens market position by acquiring Wal-Mart Germany and Géant Poland

The Real sales division considerably strengthened its position both in domestic and international markets. By entering the market in Romania, and acquiring the competitors Wal-Mart in Germany and Géant in Poland, the company bolstered its long-term competitive position. Sales at Real, including Extra, climbed by 4.6 percent to € 10.4 billion. EBIT at Real totaled € 45 million compared with a loss of € 12 million in the previous year. An earnings contribution of € 44 million was related to the repositioning of Real, including the acquisitions of Wal-Mart in Germany and Géant in Polen. This figure also includes expenses of € 28 million for intra-group provisions.

Media Markt and Saturn continue on their successful growth course

Media Markt and Saturn continued their business success of the past years and accelerated the expansion of their leading market position across Europe. The company gained additional market share both in domestic and international markets. A total of 64 new stores were opened, lifting the total to 621 stores at the end of 2006. Overall sales rose by 13.9 percent to € 15.2 billion. Growth was particularly strong in Eastern Europe. In this region, sales shot up 37 percent to € 1.1 billion. EBIT climbed by 15.2 percent to € 587 million. The dynamics of the EBIT development achieved, in spite of the intense pace of expansion, are reflected in the striking earnings strength of Media Markt and Saturn. Over the years, Media Markt and Saturn have become the epitome of conceptual and performance strength in European consumer electronics retailing.

Kaufhof department stores differenciate themselves as lifestyle providers

The department stores of Galeria Kaufhof improved sales by 1 percent to € 3.6 billion. The Belgian subsidiary, Galeria Inno, increased sales by 7.7 percent to € 298 million. After enjoying good sales results in the first half of the year, business declined during the second half as a result of mild weather. Business developed exceptionally well in the stores located in Aachen, Munich and Berlin’s Alexanderplatz that were redesigned under the Galeria concept. EBIT at Galeria Kaufhof rose in the past year by 18.1 percent to € 82 million.

Outlook

For the current year, the company is expecting to boost sales, including the acquisitions made in 2006, by 8 to 9 percent. It is also striving to increase EBIT by 6 to 8 percent (comparable basis: € 1.91 billion). Investments by the METRO Group will most likely total around € 2.5 billion during the current year. These funds will primarily flow into the continued international expansion of the growth drivers Metro Cash & Carry as well as Media Markt and Saturn. The METRO Group is also investing in the conversion of the former Wal-Mart stores to the Real concept and in the selective expansion of Real in Eastern Europe.

"We have set ambitious goals for ourselves in 2007," Dr. Körber said. "And are determined, to achieve them thanks to our continuously improved performance and competitiveness."

Within the framework of its profitable growth strategy, the METRO Group is expecting to generate a sales increase of around 6 percent annually over the medium-term and EBIT excluding special items above this level of sales growth.

Service

 

METRO Group is one of the most important international retailing companies. In 2006 the group reached sales of about € 60 billion. The company has a headcount of some 270,000 employees and operates about 2,400 outlets in 30 countries. The operating business is performed by the sales brands which operate independently in the market: Metro/Makro Cash & Carry – world market leader in cash & carry wholesale, Real hypermarkets and Extra supermarkets, Media Markt and Saturn – market leader in consumer electronics centers in Europe, and Galeria Kaufhof department stores.

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