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METRO GROUP : ANNUAL REPORT 2010 : BUSINESS
→ GROUP MANAGEMENT REPORT : 12. SUPPLEMENTARy ANd FORECAST REPORT
Games, innovative products can generate additional growth
in 2011. we also expect a rise in sales as well as growth in
earnings for 2012. At the same time, we intend to expand the
market position.
Galeria Kaufhof
For Galeria Kaufhof, 2010 unfolded quite satisfactorily, a
development we also want to build on in 2011. we will expand
the current online presence and extend the breadth and
depth of the assortment, particularly the clothes selection.
By taking this approach, Galeria Kaufhof can plot a growth
path independent of department store locations and attract
new customers from all areas.
Overall, Galeria Kaufhof expects solid sales development in
connection with increased profitability.
Real Estate
As a result of the increased expansion in the growth regions
of Asia and Eastern Europe, we expect to generate higher
earnings from rising rental income over the next few years.
The professionalisation of real estate management and
more active portfolio management already led to a higher
earnings contribution for the segment in 2010. we expect
this development to be sustainable and to also contribute to
METRO GROUP’s overall earnings this year.
As part of our energy and resource management, we are
rigorously pursuing our goal of markedly reducing our CO 2
emissions. Aside from our conscientious and efficient use of
resources, we also expect our bundled energy procurement
activities to result in lower costs for the sales divisions.
METRO GROUP
The economic situation improved in 2010, even surpassing
pre-crisis levels in some countries. But this does not change
the fact that unresolved structural problems will continue
to exist in 2011. Overall, however, we anticipate economic
recovery to continue.
Expected sales development
In the medium term, METRO GROUP expects sales growth
of more than 6 percent a year.
In 2011, METRO GROUP expects sales growth of more than
4 percent. we continue to expect an economic recovery and
moderate price increases, particularly in the area of energy
and raw material prices. In addition, we assume that the fiscal
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policy measures to stabilise public budgets will have been
largely implemented in our major sales markets.
Expected earnings development
METRO GROUP’s strategy aims for long-term profitable
growth, that is disproportionate earnings growth compared
to sales growth. The Company aims for annual earnings
growth, measured in terms of EBIT before special items, of
more than 10 percent over the medium term. In the process,
Shape 2012 will generate incremental positive earnings contributions
and will be fully effective from 2012.
Assuming that macroeconomic parameters continue to
improve, we currently expect to reach our medium-term
target for earnings growth before special items as early as
2011 based on EBIT before special items of €2,415 million for
2010. The degree of earnings growth essentially depends on
the continued improvement of macroeconomic parameters
and the extent to which price increases on the procurement
side can be offset.
Expected development of key items of the income statement
we project disproportionately low increases in the expense
items of the income statement in 2011 – adjusted for special
items from Shape 2012. The Shape 2012 measures will primarily
reduce operating expenses and general administrative
expenses. As the majority of cost-saving measures have
now been implemented, they will have a full-year effect for
the first time in 2011. In addition, the programme will have a
positive impact on gross profit and contribute to an increase
in the gross margin.
due to an optimisation of the maturity structure, we expect
interest expenses to drop slightly in 2011.
Expected dividend development
Ever since its establishment 15 years ago, METRO AG has disbursed
an annual dividend. In the context of a dynamic dividend
policy, the size of dividend payouts principally depends
on the development of earnings per share before special
items. In future, we intend to continue to pay a competitive and
attractive dividend compared to other dAX 30 companies and
retail groups. we expect that the projected rise in profits for
both 2011 and 2012 will lead to dividend increases.
Expected employee development
due to the Company’s expansion efforts, the number of
METRO GROUP employees will rise by a large four-digit figure.