Notes to the Financial Statements
Federation of Migros Cooperatives
Accounting standard
The annual financial statement of the Federation of Migros Cooperatives, Zurich, has been prepared in accordance with the regulations currently applicable under company law.
Since 2011 the imparity principle has no longer been applied for foreign currency transactions concluded by the FMC for its partners (companies and foundations of the Migros Community).
Balance sheet information
| CHF thousand | 2013 | 2012 |
| Fire insurance values: | ||
| Movable property | 256'974 | 245'140 |
| Real estate | 17'925 | 32'555 |
| Accumulation/release of undisclosed reserves (-) | 4'902 | 4'400 |
| Sureties, guarantee commitments, charges in favour of third parties | 109'763 | 158'055 |
| Liabilities in respect of staff pension schemes | 378'154 | 767'624 |
Appropriation of net profit for the year
Proposal of the Board of Directors for the appropriation of net profit for the year:
| CHF thousand | 2013 | |
| Profit brought forward from previous year | 230 | |
| Profit for the current year | 50'565 | |
| Net profit for the year for approval by the Assembly of Delegates | 50'795 | |
| Interest at 4% on FMC Cooperative capital | 600 | |
| Allocation to other reserves | 50'000 | |
| Carried forward to new account | 195 |
Risk management
The Federation of Migros Cooperatives Zurich operates a risk management system. The Board of Directors ensures that a risk assessment is carried out on time and in the appropriate manner. The Board is regularly informed by the Management about the risk situation of the company.
Based on a systematic risk analysis, the Board of Directors and the Chief Executives identify the main risks for the Federation of Migros Cooperatives and assess the likelihood of occurrence and financial effects. Measures implemented by the Board of Directors ensure that these risks are avoided, reduced or passed on.
Risks that have to be borne by the company are rigorously monitored. The results of the risk assessment are taken into consideration in the Board's annual review of business strategy.
The last risk assessment was carried out by the Board of Directors on 4 July 2013 and established that risks were well covered by strategies, processes and systems.
Expenditure for cultural, social and economic policy purposes
| CHF thousand | 2013 | 2012 |
| Culture | 19'896 | 22'450 |
| Social | 4'877 | 6'237 |
| Education/training | 16'504 | 14'643 |
| Leisure and sport | 4'036 | 6'593 |
| Economic policy | 2'297 | 2'730 |
| Administrative/infrastructure costs | 1'036 | 945 |
| Total | 48'646 | 53'598 |
Letters of comfort
The FMC has issued letters of comfort to Migros Bank for three subsidiaries, in which it states that the subsidiaries will have adequate capital to be able to meet their obligations towards Migros Bank. Should the equity capital no longer be fully covered as a result of losses, the FMC would provide the amount needed to restore the legally required condition.
List of main equity interests
| Company | Domicile | Currency | Equity capital thousand | Equity interest in % |
| AMS Sourcing BV | NL-Schiphol | EUR | 67 | 3 |
| Atlante S.r.l. | IT-Casalecchio di Reno (BO) | EUR | 80 | 20 |
| Cremesso AG | Zurich | CHF | 100 | 100 |
| Depot CH AG | Winterthur | CHF | 1'000 | 100 |
| Dolphin France SAS | FR-Saint-Etienne | EUR | 115.2 | 51 |
| EG Dritte Kraft AG | Zug | CHF | 600 | 100 |
| Ferrovia Monte Generoso SA | Mendrisio | CHF | 3'500 | 100 |
| Galaxus AG | Zurich | CHF | 108 | 30 |
| Gries Deco Holding GmbH | DE-Niedernberg | EUR | 56 | 90 |
| Interio AG | Dietikon | CHF | 1'000 | 100 |
| LeShop SA | Ecublens | CHF | 4'329 | 96.2 |
| Migrolino AG | Bern | CHF | 6'000 | 100 |
| Migros Beteiligungen AG | Rüschlikon | CHF | 1'000 | 100 |
| Aproz Sources Minérales SA | Nendaz | CHF | 829 | 97.5 |
| Bischofszell Nahrungsmittel AG | Bischofszell | CHF | 6'000 | 100 |
| Chocolat Frey AG | Buchs | CHF | 4'000 | 100 |
| Delica AG | Birsfelden | CHF | 1'000 | 100 |
| Denner AG | Zurich | CHF | 15'000 | 100 |
| Estavayer Lait SA | Estavayer-le-Lac | CHF | 3'500 | 100 |
| Ex Libris AG | Dietikon | CHF | 3'000 | 100 |
| Hotelplan Holding AG | Opfikon | CHF | 10'000 | 100 |
| Jowa AG | Volketswil | CHF | 10'000 | 100 |
| Liegenschaften-Betrieb AG | Zurich | CHF | 18'000 | 100 |
| Löwenbräu-Kunst AG | Zurich | CHF | 9'000 | 33.33 |
| Magazine zum Globus AG | Spreitenbach | CHF | 33'000 | 100 |
| Mibelle AG | Buchs | CHF | 2'000 | 100 |
| Micarna SA | Courtepin | CHF | 10'000 | 100 |
| Midor AG | Meilen | CHF | 2'000 | 100 |
| Mifa AG Frenkendorf | Frenkendorf | CHF | 2'000 | 100 |
| Mifroma SA | Ursy | CHF | 3'000 | 100 |
| Migrol AG | Zurich | CHF | 52'000 | 100 |
| Migros Bank AG | Zurich | CHF | 700'000 | 100 |
| OWiba AG | Bolligen | CHF | 100 | 100 |
| Riseria Taverne SA | Torricella-Taverne | CHF | 100 | 100 |
| Migros Deutschland GmbH | DE-Lörrach | EUR | 4'880 | 48.8 |
| Migros (Hong Kong) Ltd. | HK-Kowloon | HKD | 100 | 100 |
| Migros-Verteilbetrieb Neuendorf AG | Neuendorf | CHF | 4'500 | 100 |
| Migros Verteilzentrum Suhr AG | Suhr | CHF | 35'000 | 100 |
| Migros Vita AG | Gossau SG | CHF | 600 | 25 |
| Migros Liegenschaften GmbH | DE-Lörrach | EUR | 4'812.8 | 94 |
| M Industry Canada Inc. | CA-Saint John NB | CAD | 300 | 100 |
| M Industry USA Inc. | Delaware | USD | 700 | 100 |
| m-way AG | Opfikon | CHF | 1'000 | 100 |
| Ryffel Running AG | Bern | CHF | 36 | 60 |
| Ryffel Running Versand AG | Uster | CHF | 100 | 100 |
| Saviva AG | Regensdorf | CHF | 6'400 | 80 |
| Sportxx AG | Zurich | CHF | 100 | 100 |
| SSP Informatik AG | Zurich | CHF | 100 | 100 |
| Swiss Industries GmbH | DE-Weil am Rhein | EUR | 125 | 100 |
| TKL Tiefkühllager AG | Neuendorf | CHF | 2'500 | 100 |