Economic Performance

The long-term success of the company is based on the cooperative structure, which is characterised by values such as solidarity, cohesion and sustainability. The REWE Group Supervisory Board, shareholders, retailers and Executive Board are committed to the cooperative structure, which is set up for the long term as a guarantee of independence and self-determination.

Effect

The REWE Group is aware that its economic performance as an international trade and tourism company has an impact on numerous stakeholders. As a food supplier, the company is part of so-called “critical infrastructures”. Furthermore, the REWE Group is an employer for many employees in different areas. As an intermediary between manufacturers, service providers and consumers, and with the help of its economic size, the REWE Group can influence important social values such as sustainability - and also actively commit to society. In line with the long-term, multigenerational orientation based on the cooperative structure, the company assumes responsibility for the future: On the one hand, the company strives to reduce the negative impact of its products on people, animals and the environment with its sustainability strategy. On the other hand, it also aims to promote sustainability further and highlight it in society.

Principles

The REWE Group aims to be economically successful in the long term and to conduct its business activities in an environmentally and socially responsible manner. This principle is embedded in the Guideline on Sustainable Business Practices, which is decisive for all employees and contractual partners of the REWE Group. In the guideline, the company commits, among other things, to reduce greenhouse gas emissions generated by its business processes, to use renewable energy sources, to use natural resources sparingly and to respect human rights in its own business operations and in the supply chain.

Implementation

The REWE Group aims to constantly operate more sustainably, because it regards sustainability as part of its business strategy. Therefore, the various sales lines are developing more socially and environmentally compatible private label products and services and expanding their more sustainable ranges. Securing economic success is thus an indispensable prerequisite. In addition, the REWE Group pursues its strategic targets consistently. By doing so, the company specifically invests in the sustainability and future viability of its business segments.

For instance, in 2021, the REWE Group extended its sustainability strategy to the financial sector for the first time and opted for a credit line that is linked to sustainability factors such as labour standards, climate protection and environmentally and socially beneficial products. The credit line, which is based on the ESG rating of the rating agency ISS ESG, has a volume of 750 million euros and runs for 18 months with a 12-month extension option. The REWE Group was rated "C+" by ISS ESG. This corresponds to the "Prime" level. The company's transparency level is awarded the status "very high". The ESG rating is reviewed annually by ISS ESG over the term of the credit line.

To underscore its commitment to sustainability in the financial sector, the REWE Group is represented by its Head of Finance on the Sustainable Finance Advisory Committee of the German Federal Government in the 20th legislative period, as it was on the Advisory Committee in the 19th legislative period. The Sustainable Finance Advisory Committee consists of representatives from the financial sector, the real economy, civil society and academia and advises the German Federal Government on the further development and implementation of its sustainable finance strategy.

Involvement of Stakeholders

The topic of Economic Performance was rated as particularly relevant by stakeholders in the Materiality Analysis. They are informed annually about the effectiveness of measures taken via the Sustainability Report and in various dialogue formats (see Stakeholder Dialogue). These include, for example, the general meeting of REWE Zentralfinanz AG, which took place in June 2022. The 2021 annual financial statements were approved and the actions of the company's Executive Board and Supervisory Board were unanimously discharged.

The revenue of the REWE Group grew by 10.4 per cent in the 2022 financial year, from 76.8 billion to 84.8 billion euros. The revenue of the REWE Group - excluding independent retailers and at-equity companies - from continuing operations increased last year by 11.3 per cent from 69.4 billion euros to 77.2 billion euros (for further details, see also Management Report for the 2022 Financial Year from page 16).

Following the COVID-19 related travel restrictions, the travel and tourism segment in particular continued to see a market recovery and a significant increase in revenue from 2.0 billion euros in 2021 to 4.9 billion euros in 2022. Thus, the revenue was almost at pre-pandemic level. The increase of virtually 142 per cent is mainly due to the elimination of most travel restrictions in the reporting year as well as high customer demand for higher-priced offers and long-haul travel.

Revenue Development

Key Earnings Figures

“REWE Group Pensionskasse” (REWE Group Pension Fund)

In view of demographic developments, additional provision for old age is becoming increasingly important. The REWE Group is also aware of this and offers the employees of all the REWE Group companies in Germany a company pension scheme with the REWE Group pension fund, which is specifically geared to the needs of employees in the retail industry.

In addition to retirement benefits, the REWE Group pension fund provides benefits in the event of disability and death and can also be continued when changing employer. Furthermore, the REWE Group guarantees the security of the contributions paid and supports employees with an employer-financed amount of up to 300 euros per year. The company supports employees' own contributions from gross deferred compensation with a subsidy of up to 15 per cent. In Austria, REWE International AG offers a similar model.

“REWE Group-Höherversorgung” (REWE Group Higher Retirement Provision)

The financial services of the German statutory pension insurance scheme are limited to a so-called income threshold. Employees with an income above this threshold therefore have a greater need for an additional pension scheme, since the gap between their last salary and the highest possible statutory pension entitlement can be very wide. In order to meet the requirements of this target group as well, the REWE Group offers an individual pension scheme model with the REWE Group-Höherversorgung (REWE Group higher retirement provision) in Germany as well as similar models in other countries in which the company is represented. Since early 2022, employees with an income under the threshold are allowed to participate in the REWE Group-Höherversorgung (REWE Group higher retirement provision) as well. The prerequisite is that they already pay the tax- and social security-free maximum contribution into the REWE Group pension fund and want to pay additional contributions tax- and social security-free into the company pension scheme.

Historical Pension Schemes

In addition to the active pension models listed above, both defined contribution and defined benefit commitments of employees of companies acquired in the past are continued. These are reflected in the pension provisions in the annual report, where applicable.

In 2022, the present value of the defined benefit obligation (DBO) corresponded to € 933.2 million (plus € 197.4 million of obligations similar to pensions; 2021: 1,240.2 million euros and 235.6 million euros, respectively). For further information, see Management Report for the 2022 Financial Year from page 143.

Other Services

Other employee benefits relate to the voluntary above-tariff special payments presented below and voluntary social benefits such as survivors' benefits and retirement allowances, the volume of which is visible as a component of the so-called "obligations similar to pensions".

Voluntary Above-Tariff Special Payments by Sales Line, in Euros

Company Pension Scheme by Sales Line, in Euros