Performance

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1. Comparison of the forecast reported in the previous year with actual business development

Revenue development of the REWE Group was above expectations in 2017. This was attributable in particular to the development in the German food retail sector caused by the Supermärkte Nord companies acquired in 2016 and the Kaiser's Tengelmann stores acquired, as well as the first-time full consolidation of REWE Dortmund SE & Co. KG, Dortmund, as at 1 September 2017.

Operating EBITA developed partly much better than forecast for 2017 in  all business units. The costs incurred in connection with the integration of the Supermärkte Nord companies and the Kaiser's Tengelmann stores were the primary factor weighing on earnings. In addition, rising logistics, personnel and non-personnel costs also reduced EBITA. 

Retail Germany significantly increased its operating revenue and EBITA as compared to the budget. Both REWE and Penny recorded increases. Earnings were reduced by the aforementioned integration of the Supermärkte Nord companies and the Kaiser's Tengelmann stores.

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 stronger than expected. 

The Retail International segment's EBITA was above expectations for 2017. Penny and the CEE Full-Range stores segment exceeded their EBITA target. Budgeted EBITA in Austria was also exceeded despite the costs incurred in connection with the realignment of the drug stores concept.

The development of the Travel and Tourism segment was marked in particular by the positive development of the integrated Kuoni units. Thus the Travel and Tourism segment increased its revenue year on year despite the difficult trends which persisted in certain core tourist areas, although the segment did not quite manage to achieve the expected revenue figures. Despite the difficult situation in certain core areas and the costs associated with the insolvency of an airline, the Travel and Tourism segment exceeded the budgeted EBITA expectations.

The National Specialist Stores segment did not quite meet revenue expectations, although it still outperformed the industry average. Despite the negative trend for prices in the DIY sector, the DIY store segment could met the budgeted EBITA expectations.

The combined Group's net debt developed above the budgeted figures. This was due to increased investment, the postponement of the sale of the equity investment in UAB Palink, Vilnius, Lithuania, until the next year and an increase in inventories in the National Specialist Stores segment.