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 1/10/2019

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 and 1/10/2020

32

70

2

104

Currency translation

0

0

0

0

Additions to consolidation group

0

0

0

0

Additions1

2

15

0

18

Disposals1

−2

−23

0

−25

Reclassifications in accordance with IFRS 5

0

0

0

0

Transfers

0

0

0

0

As of 30/9/2021

32

63

2

97

Depreciation

 

 

 

 

As of 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 and 1/10/2020

6

0

0

6

Currency translation

0

0

0

0

Additions, scheduled

0

0

0

0

Additions, impairment

0

0

0

0

Disposals

−1

0

0

−1

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 30/9/2021

5

0

0

5

Carrying amount as of 1/10/2019

29

66

2

97

Carrying amount as of 30/9/2020

26

70

2

98

Carrying amount as of 30/9/2021

27

63

2

92

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.

The disclosures below provide information on investments accounted for using the equity method.

As of 30 September 2021, shares in investments accounted for using the equity method amounted to €361 million (30/9/2020: €421 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.

 

Habib METRO Pakistan

OPCI FWP

OPCI FWS

Mayfair-group1

€ million

2019/20

2020/21

2019/20

2020/21

2019/20

2020/21

2019/20

2020/21

Disclosures on the income statement

 

 

 

 

 

 

 

 

Sales revenues

10

11

19

19

18

17

14

Tax profit for the period from continuing operations

10

6

12

12

13

13

9

Tax profit for the period from discontinued operations

Other comprehensive income

Total comprehensive income

10

6

12

12

13

13

9

Dividend payments to the group

2

2

1

3

4

5

Disclosures on the balance sheet

 

 

 

 

 

 

 

 

Non-current assets

35

35

271

267

251

254

179

Current assets

22

25

8

4

7

6

2

Non-current liabilities

6

6

107

102

96

94

0

Current liabilities

3

2

0

0

0

0

2

Net assets

48

52

172

168

161

166

179

Amount of the share (in %)

40

40

5

5

25

25

40

Share of the group in the net assets

19

21

9

8

40

41

72

Adjustment of asset values

11

12

Carrying amount of the share in the group

31

33

9

8

40

41

72

1

The Mayfair group comprises 10 real estate companies, which were sold on 15 January 2021.

 

WM Holding (HK) Limited

Miscellaneous

Total

€ million

2019/202

2020/213

2019/20

2020/21

2019/20

2020/21

Disclosures on the income statement

 

 

 

 

 

 

Sales revenues

1,861

146

177

207

2,085

Tax profit for the period from continuing operations

8

67

75

111

114

Tax profit for the period from discontinued operations

Other comprehensive income

−45

0

0

0

−45

Total comprehensive income

−37

67

75

111

69

Dividend payments to the group

7

6

13

16

Disclosures on the balance sheet

 

 

 

 

 

 

Non-current assets

2,534

Current assets

872

Non-current liabilities

1,315

Current liabilities

804

Net assets

1,287

Amount of the share (in %)

20

20

Share of the group in the net assets

258

Adjustment of asset values

Carrying amount of the share in the group

250

258

20

22

421

361

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 initial consolidation and the effects of purchase price allocation. The financial statements of the acquiring party were in the process of being prepared.

3

The disclosures in the current year regarding the shares in WM Holding (HK) Limited are based on preliminary financial statements for a short financial year to 31 December 2020.

The other comprehensive income is the result of the currency translation outside of profit or loss in the consolidated financial statements of WM Holding (HK) Limited.

METRO’s representation on the supervisory board of OPCI FRENCH WHOLESALE PROPERTIES – FWP means that significant influence is maintained and equity accounting is appropriate, 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.

The investments in the Mayfair group were sold at the beginning of the current financial year.