Performance

1. COMPARISON OF THE FORECAST REPORTED IN THE PREVIOUS YEAR WITH ACTUAL BUSINESS DEVELOPMENT

Revenue development of the REWE Group was in line with expectations in 2018.

Operating EBITA developed much better than forecast for 2018 in almost all business segments. This was due mainly to the developments in both the national and the international food retail sectors.

The Retail Germany business segment significantly increased its revenue year on year, essentially meeting its targets.

The Retail Germany business segment EBITA was significantly higher than forecast; REWE and Penny also recorded increases. Despite the successful integration of the Supermärkte Nord companies, these continue to weigh on earnings.

The revenue development of the Retail International business segment was above budgeted expectations. Both Penny and the Full-Range stores showed positive development. For instance, the development in Eastern Europe in particular was better than expected. In particular, the revenue in the Czech Republic developed better than forecast. The first-time consolidation of UAB Palink, Vilnius, Lithuania, significantly influenced the development of the CEE Full-Range Stores from August 2018 onward.

EBITA of the Retail International business segment was above expectations. Penny and the Full-Range stores segment exceeded their EBITA target. With regard to the Full-Range stores in Eastern Europe, only Russia and Ukraine fell short of expectations.

The development of the Travel and Tourism business segment was marked in particular by the difficult development in the German tour operator business. While the Travel and Tourism business segment increased its revenue year on year, it did not meet its revenue expectations. Due to the situation in the German tour operator business, the negative effects from the insolvencies of various airlines, and the accrual of restructuring costs, the Travel and Tourism business segment fell short of the budgeted EBITA targets.

The DIY Stores segment did not quite meet revenue expectations, although it still recorded a year-on-year increase. Due to lower cost developments, the DIY Stores segment was able to exceed the budgeted EBITA targets.

The combined Group's net debt was below the budgeted figures. This was due primarily to lower-than-planned investments. The unsuccessful sale of UAB Palink, Vilnius, Lithuania, had an  offsetting effect.