pdf (22.8 MB) - METRO Group

METRO GROUP : ANNUAL REPORT 2011 : BUSINESS
→ GROUP MANAGEMENT REPORT : 3. EARNiNGs POsiTiON
of 326,787,529 shares. Group net profit attributable to the
shareholders of €631 million was distributed according to
this number of shares. There was no dilution from so-called
potential shares in the reporting year or in the previous year.
earnings per share before special items, that is adjusted for
the special items from shape 2012, totalled €2.63 (previous
year: €3.12).
EBiT after Cost of Capital (EBiTaC)
MeTRo GRoUp’s strength is reflected in its ability to continuously
increase the Company’s value through growth and
operational efficiency as well as optimal capital deployment.
MeTRo GRoUp has been using value-orientated performance
metrics since 2000 to ensure the Company’s sustained value
creation. since 2009, we have measured the value contribution
in terms of eBITaC (eBIT after Cost of Capital). a positive
value contribution is achieved when earnings before interest
and taxes exceed the cost of capital needed to finance the
average capital employed.
eBITaC = eBIT 1 – cost of capital
= eBIT 1 – (capital employed x WaCC)
1 special items from shape 2012 generally periodised over four years
Change
2010 2011 Absolute %
net profit for the period € million 9361 7411 net profit attributable to
–195 –20.9
non-controlling interests
net profit attributable to
€ million 86 110 24 27.0
shareholders of MeTRo aG € million 8502 6312 –219 –25.8
earnings per share3 € 2.604 1.934 earnings per share
–0.67 –25.8
before special items3, 5 € 3.12 2.63 –0.49 –15.8
1 Includes special items from shape 2012 after taxes of €238 million (previous year: €203 million)
2 Includes special items from shape 2012 after taxes of €228 million (previous year: €169 million)
3 net of non-controlling interests
4 Includes special items from shape 2012 after taxes of €0.70 per share (previous year: €0.52)
5 adjusted for special items from shape 2012
The use of the performance metric eBITaC enables
MeTRo GRoUp to focus on the key drivers of the operating
business that management can influence: increases in
operational efficiency, value-creating growth and the optimisation
of capital employed. The efficiency and valueenhancing
programme shape 2012 contributes, in
particular, to increases in operational efficiency and the
optimisation of capital employed. value-creating growth, in
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turn, continues to derive largely from MeTRo GRoUp’s
strategy of investing in the high-margin growth regions of
eastern europe and asia.
The cost of capital reflects the expected remuneration to
investors for the capital they provide and for their investment
risk before taxes. It is calculated by multiplying the
average capital employed by the weighted average cost of
capital before taxes (WaCC).
The cost of capital before taxes corresponds to the minimum
return on capital demanded by capital providers. It
reflects the total cost of capital employed and thus consists
of equity and debt capital costs. In 2011, MeTRo GRoUp’s
weighted cost of capital before taxes amounted to 9.1 percent.
This figure is calculated from the segment-specific weighted
cost of capital weighted according to capital employed.
Business assets represent interest-carrying assets. They
comprise segment assets plus net working capital less
trade payables as well as deferred liabilities. We principally
use an average capital employed that is calculated from
quarterly financial statements in order to also consider
developments in capital employed that occur during the
relevant period.
In the calculation of eBITaC, special items from shape 2012
are generally distributed over four years on a straight-line
basis and considered in earnings before interest and taxes
(eBIT) during the reporting year. as the respective positive
eBIT effects largely arise with a time lag to expenses, the
distribution of these special items over several years provides
for an improved presentation of operating performance.
as a result, short-term special effects do not
fully impact earnings during the period in which they occur.
In addition, the periodisation helps to ensure that mea sures
that create value over the long term are not abandoned
because of negative short-term earnings effects.
The results of the eBITaC analysis are used, among other
things, for the management of MeTRo GRoUp’s portfolio as
well as for the allocation of investment funds. Medium- to
long-term effects on value creation are the key factor
determining the allocation of investment funds. as a result,
the cash value of future value added represents the key criterion
for all investments within MeTRo GRoUp. In order to
also consider tax aspects in decisions on future expansion,
value added after taxes is calculated for these cases. In