Dr Eckhard Cordes speaks about the financial year 2009, the initial benefits of the efficiency and value-enhancing programme Shape 2012 and the challenges facing METRO Group. cbi:///cms/90436

The global downturn weighed on private consumption and, of course, left its mark on the retail industry as well. Compared with other sectors, however, the sales decline was relatively moderate. Some regions, such as Asia, even started posting positive growth rates again in the first and above all the second half of the year. Nonetheless, there is no getting around this crisis. METRO Group implemented countermeasures early on, including a targeted reduction of its investments and the optimisation of its financing structure, for example through successful bond issues. This has enabled us to maximise our entrepreneurial freedom - with the result that the Group has held up well overall. Sales in 2009 amounted to €65.5 billion and even rose slightly when adjusted for currency effects. This means that we managed to post slight growth despite the crisis. Earnings before special items reached more than €2 billion and were thus in line with our expectations. At the end of 2009, we operated 2,127 stores in 33 countries worldwide. At 80, the number of new store openings was lower than in previous years. Nonetheless, we managed to strengthen our market position in most countries. cbi:///cms/90437

is Shape 2012. The programme is divided into 2 phases: the first phase, which involves the adaptation of our organisational structures, was largely completed in mid-2009. Our centralised procurement organisation has been dissolved, and our sales divisions have been given full operational responsibility - from procurement and logistics to sales operations. This decentralisation represents a paradigm change for METRO Group: we are building the foundation for a growing entrepreneurial spirit across the Group. Our customers, already the focus of all we do, will be understood, advised and served even better. The extension of our sales divisions' responsibilities will contribute decisively to the Group's growth momentum. At the same time, we have further centralised Group functions that play an important role in strategic management. This includes such functions as finance, controlling and compliance. All of this will make our operations more transparent. cbi:///cms/90444

Shape 2012 aims for a profit improvement potential of €1.5 billion from 2012. The second phase will focus on realising this profit improvement potential. Cost reductions will account for about €800 million. Measures to boost our growth and margins will contribute an additional €700 million. cbi:///cms/90445

Yes, Shape 2012 generated a contribution of about €208 million to our business success in the past financial year. As a result of this success, I am optimistic about the future. Shape 2012 will help us to remain on our long-term profitable growth path. cbi:///cms/90448

Metro Cash & Carry is our most international sales division with a particularly strong presence in Eastern Europe. True, negative currency effects in this region had an adverse impact on this business. However, given the macroeconomic environment, Metro Cash & Carry actually performed rather well in the financial year 2009. The sales division has successfully continued its expansion and opened its first store in Kazakhstan. This makes us the first wholesaler to enter this market and - again - a pioneer. Our market entry in Egypt will represent the next milestone to be reached in 2010. The foundations for our first wholesale store there were laid during the reporting year. Despite all these international activities, we are certainly not losing sight of our domestic market, Germany. Here, we are refocusing more strongly on the needs of commercial customers, our core target group. In this context, we have introduced a modified pricing strategy, focused assortments, a revised own-brand concept and a delivery service, among other things. In addition, Metro Cash & Carry is testing an assortment design that is geared even more closely towards the needs of commercial customers in 5 concept stores across Germany. cbi:///cms/90449

Media Markt and Saturn is in a class of its own - a finding that was endorsed by the division's performance in an unfavourable environment for the consumer electronics industry in crisis year 2009. After all, this business is more cyclical than food retail and more dependent on consumers' confidence. But there are good reasons for our solid performance: Media Markt and Saturn has a unique concept. In addition, the sales division's employees have a distinct entrepreneurial spirit. Advertising, including the campaign celebrating Media Markt's 30th anniversary, also played a part in the division's success. In 2009, both sales brands reaffirmed their leading position in European consumer electronics retailing and continued to grow their sales. We added market share in all our markets in 2009 and opened our 800th consumer electronics store during the past financial year. We will continue on this dynamic growth path in 2010. This year's agenda includes Media Markt's market entry in China and the addition of the Internet as a distribution channel. cbi:///cms/90452

I remain fully convinced that the department store has a future in Germany. Our own sales division Galeria Kaufhof proves this as it operates very successfully based on a convincing concept. The department store has to deal with continually changing parameters and adapt to new trends ever more frequently. Galeria Kaufhof has shown that this is possible. This is why I regard the current development as a major opportunity. However, that does not change the fact that we still do not consider this sales division as one of our strategic business areas. Over the long run, it will be better able to fully tap its potential with a different partner. But we are in no rush: as a highly profitable business, Galeria Kaufhof also contributes to our Group's success. cbi:///cms/90453

With Shape 2012, we have strategically positioned our Company for the future. Our Company is in a very good position to achieve sustained and profitable growth. This new strategic positioning is also meeting with an increasingly positive response from capital market participants. We will propose a dividend of €1.18 to our shareholders at the Annual General Meeting. This underscores the solid positioning and reliability of METRO Group even in challenging economic times. cbi:///cms/90456