Company Valuation Under IFRS : Interpreting and Forecasting ...

Company valuation under IFRS
Exhibit 5.3: Metro valuation with buy-back
3. Metro profit and loss account (€ million)
Year 2002 2003 2004 2005 2006 2007 2008
Net sales 51,526 53,595 54,900 56,378 58,060 59,990 62,221
Cost of sales (40,126) (41,687) (42,431) (43,556) (44,866) (46,403) (48,217)
Gross profit 11,400 11,908 12,469 12,822 13,194 13,586 14,004
Gross profit margin 22.1% 22.2% 22.7% 22.7% 22.7% 22.6% 22.5%
Other operating 1,532 1,461 1,476 1,490 1,505 1,520 1,536
income
Selling expenses (10,377) (10,636) (10,901) (11,174) (11,452) (11,738) (12,031)
General (1,013) (1,031) (1,049) (1,068) (1,087) (1,106) (1,126)
administration
expenses
Other operating (115) (112) (109) (106) (103) (101) (98)
expenses
EBITA 1,427 1,590 1,885 1,965 2,056 2,161 2,285
Amortisation of (261) (272) (272) (272) (272) (272) (272)
goodwill
EBIT 1,166 1,318 1,613 1,693 1,784 1,889 2,013
Investment income 38 (60) (11) (11) (11) (11) (11)
Net interest (378) (425) (477) (431) (385) (394) (404)
Other financial items 4 (16) (6) (6) (6) (6) (6)
Net financial items (336) (501) (494) (448) (402) (411) (421)
Earnings before tax 830 817 1,119 1,245 1,382 1,478 1,592
Income tax (328) (246) (487) (531) (579) (612) (652)
Tax/Profit before 39.5% 30.1% 35.0% 35.0% 35.0% 35.0% 35.0%
amortisation
Group net income 502 571 632 714 803 865 939
Minority interest (59) (75) (83) (94) (106) (114) (123)
Minority/group 11.8% 13.1% 13.1% 13.1% 13.1% 13.1% 13.1%
net income
Attributable net 443 496 549 620 698 752 816
income
Dividend paid (334) (334) (369) (417) (469) (484) (549)
Retained earnings 109 162 180 203 228 268 267
Common stock
Weighted average 324.1 324.1 324.1 324.1 324.1 310.5 296.9
shares (m)
Year end shares (m) 324.1 324.1 324.1 324.1 324.1 296.9 296.9
Preferred stock
Weighted average 2.7 2.7 2.7 2.7 2.7 2.7 2.7
shares (m)
Year end shares (m) 2.7 2.7 2.7 2.7 2.7 2.7 2.7
Shares outstanding
Weighted average 326.8 326.8 326.8 326.8 326.8 313.2 299.6
shares (m)
Year end shares (m) 326.8 326.8 326.8 326.8 326.8 299.6 299.6
Earnings per share 1.36 1.52 1.68 1.90 2.14 2.40 2.72
(Euro)
Common stock 1.020 1.020 1.130 1.275 1.435 1.613 1.830
dividend (Euro)
Preferred stock 1.122 1.122 1.243 1.403 1.578 1.775 2.013
dividend (Euro)
Payout ratio 75.2% 67.2% 67.2% 67.2% 67.2% 67.2% 67.2%
(common stock)
Preferred dividend/ 110.0% 110.0% 110.0% 110.0% 110.0% 110.0% 110.0%
common dividend
214