REWE Group Sustainability Report 2017

Economic Performance

GRI 201: Economic PerformanceManagement Approach

The long-term business success of REWE Group is based on a cooperative structure that has given life to such company values as solidarity, unity and sustainability. The cooperative philosophy, the management culture that has arisen from it and the related long-term, cross-generational direction of the company create security and stability for all stakeholders, extending from members and employees to customers, suppliers and the entire socio-economic environment. For this reason, the Supervisory Board, shareholders, retailers and the Management Board of REWE Group consider the long-range cooperative structure to be a guarantee of independence and self-determination.

REWE Group is determined to generate long-term business success and to conduct its business activities in an environmentally and socially conscious manner. This commitment is spelled out in the Guidelines for Sustainable Business Practices that apply to all employees and contract partners of REWE Group. In the Guidelines, the company expresses its determination to reduce greenhouse gas emissions generated by business processes, use renewable energy sources and conserve natural resources, among other actions. By developing socially and environmentally acceptable products and services as well as expanding its more sustainable product range, the company is also helping to minimise the negative impacts created by its business operations

GRI 201-1: Direct economic value generated and distributed

In 2017, total external revenue of REWE Group increased by 6.7 per cent to 57.8 billion euros. Total revenue of REWE Combine was 49.4 billion euros in 2017 (previous year: 45.64 billion euros) (for more information, see also the Combined Management Report for the 2017 Business Year, pages 11 and 13).

Revenue development
in million € 2017 2016 Change in absolute figures Change in %
Retail Germany 28,621.1 25,588.8 3,032.3 11.9
Retail International 13,353.5 12,710.0 643.5 5.1
Travel and Tourism 4,649.6 4,576.4 73.2 1.6
National Specialist Stores 2,130.8 2,088.5 42.3 2.0
Other 669.3 672.3 -3.0 -0.4
Total 49,424.3 45,636.0 3,788.3 8.3

Result, key figures
in million € 2017 2016 Change in absolute figures Change in %
Revenue 49,424.3 45,636.0 3,788.3 8.3
Cost of materials, incl. changes in inventories -36,948.6 -33,954.4 -2,994.2 -8.8
Gross profit 12,475.7 11,681.6 794.1 6.8
Gross profit ratio 25.2% 25.6%
EBITDA 1,594.9 2,002.6 -407.7 -20.4
Depreciation, amortisation and impairments/reversals of impairment losses and impairment losses (excl. goodwill) -1,103.5 -1,006.0 -97.5 -9.7
EBITA 491.4 996.6 -505.2 -50.7
Goodwill impairments 0.0 -137.0 137.0 100.0
EBIT 491.4 859.6 -368.2 -42.8
Financial result -16.6 28.8 -45.4 < -100.0
EBT 474.8 888.4 -413.6 -46.6
Taxes on income -133.0 -396.1 263.1 66.4
Results from continuing operations 341.8 492.3 -150.5 -30.6
Results from discontinued operations -4.0 -29.8 25.8 86.6
EAT/net income for the year 337.8 462.5 -124.7 -27.0

GRI 201-3: Defined benefit plan obligations and other retirement plans

REWE Group Pension Fund

As a result of demographic change, supplemental retirement planning is becoming increasingly important. REWE Group understands this need. Through its REWE Group pension fund, it provides employees with a company pension scheme that is designed especially with the needs of retail employees in mind.

The REWE Group pension fund also provides benefits that are paid out in cases of invalidity and death in addition to the pension payments themselves. An employee may remain in the REWE Group’s pension fund even if he or she leaves the company. In addition, REWE Group assumes liability for the funds paid into the system and supports employees with an employer-financed payment of up to 300 euros each year. The company provides a supplement of up to 15 per cent to employees’ own contributions to the pre-tax deferred compensation scheme. REWE International AG offers a similar programme in Austria.

REWE Group Voluntary Pension Benefits

The benefits of the German government’s basic pension scheme are limited to the so-called pension contribution assessment ceiling. The need to have a supplementary retirement plan is particularly high for employees with incomes that exceed this ceiling because the difference between their final salary and the highest basic pension entitlement of the government scheme can be very high. To address the needs of this target group, REWE Group offers its own retirement scheme model called “REWE Group Voluntary Pension Benefits”. The benefit of this model is its tax-free contributions, which can include large amounts of employee-financed contributions through the pre-tax deferred compensation scheme. Outside Germany, special retirement schemes are offered because national social security and tax laws set the conditions for company pension plans.

Historic Pension Models

In addition to the active pension models described above, both defined-contribution and defied-benefit plans of employees who worked at companies that were acquired in the past are continued. They are also listed among pension provisions in the Annual Report if necessary.

In 2017, the fair value of the defined-benefit obligation (DBO) for the entire REWE Group was 998.1 million euros (in addition to 243.5 million euros of pension-like obligations; 2016: 934.7 million euros and 243.8 million euros, respectively). More information can be found in the Combined Management Report for the 2017 Business Year, from page 118.

Other Benefits:

Other employee benefits include voluntary special payments above the general pay scale and voluntary social benefits like survivor benefits and retirement allowances, the volume of which is listed as a component of “pension-like obligations”.

Voluntary special payments above the general pay scale by region, in euros

Sales line Year Euro
National Full-Range Stores 2015 24,324,514
2016 24,802,240
2017 25,046,462
International Full-Range Stores (Austria) 2015 -
2016 -
2017 -
Retail Germany Central Companies 2015 1,950,080
2016 2,975,003
2017 3,467,743
National Discount Stores 2015 7,874,067
2016 8,262,509
2017 8,391,562
Discount Stores Austria 2015 -
2016 -
2017 -
National Specialist Stores 2015 2,572,515
2016 2,662,439
2017 2,709,734
National Travel and Tourism 2015 245,000
2016 234,000
2017 242,000
Other 2015 8,443,022
2016 8,518,443
2017 8,973,549
Total (area of application of the sustainability report) 2015 45,409,197
2016 47,454,633
2017 48,831,050

The 13th and 14th monthly salary payments (holiday pay and Christmas bonus) are covered by collective bargaining agreements in Austria and, as a result, do not constitute add-ons.

Company pension schemes in euros, by region

Share of participants in the company pension scheme (of all eligible employees) in % Contributions to the company pension scheme (employee + employer) in euros
Sales line Year
National Full-Range Stores 2015 30.7 14,863,047
2016 30.3 15,066,498
2017 29.1 15,077,488
International Full-Range Stores (Austria) 2015 5.3 562,500
2016 5.3 578,700
2017 5.2 582,000
National Discount Stores 2015 31.1 6,767,105
2016 30.0 5,729,480
2017 29.4 5,618,818
Discount Stores Austria 2015 2.2 15,600
2016 2.3 16,500
2017 2.2 16,200
National Specialist Stores 2015 36.4 3,570,379
2016 35.8 3,610,530
2017 35.2 3,936,964
National Travel and Tourism 2015 61.9 5,329,000
2016 63.3 5,487,000
2017 64.1 5,606,000
Other 2015 38.3 11,354,836
2016 37.4 12,933,275
2017 36.9 14,899,269
Total (area of application of the sustainability report) 2015 26.4 44,167,946
2016 26.3 46,422,325
2017 25.8 51,564,506

Austria has had a company pension scheme for employees since September 2010. The company pension for managers in Austria is not included in the table.

More topics:

GRI 102-18 - 102-21

Sustainability Strategy

GRI 102-1 – 102-7, 102-10

REWE Group Portrait

GRI 102-8, 102-41

Employee Structure

GRI 102-9

Supply chain

GRI 102-12, 102-13

Initiatives and Memberships

GRI 102-16, 102-17

Ethics and Integrity

GRI 102-45 – 102-47, 102-49

Materiality

GRI 102-40, 102-42 – 102-44

Stakeholder Dialogue

GRI 102-48, 102-50 – 102-56

Report Profile

GRI 205, 206, 307, 419

Compliance

GRI 415

Public Policy

GRI 418

Customer Privacy