Balance Sheet
The Financial Services sector has had a considerable impact on the balance sheet of Migros Group. Compared to the previous year, the balance sheet total rose by CHF 2.5 billion to CHF 61.3 billion, much of which can be attributed to the increase in mortgage and other customer receivables as well as customer deposits and liabilities.
Customer deposits as at 31 December 2014 amounted to 50.9% of the balance sheet total (previous year 50.1%).
Balance Sheet Assets
| Migros Group | Retail and industry sector 1 | Financial services sector 1 | ||||
|---|---|---|---|---|---|---|
| In CHF million | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 |
| Assets | ||||||
| Cash and cash equivalents | 4'349.1 | 3'683.9 | 1'263.8 | 1'308.1 | 3'166.0 | 2'648.5 |
| Receivables due from banks | 1'670.6 | 1'732.0 | 378.8 | 492.6 | 1'292.7 | 1'240.3 |
| Mortgages and other customer receivables | 35'216.5 | 33'877.1 | – | – | 35'219.1 | 33'891.0 |
| Other receivables | 868.0 | 809.6 | 872.3 | 812.7 | – | – |
| Inventories | 2'482.2 | 2'365.6 | 2'482.2 | 2'365.6 | – | – |
| Financial assets | 1'735.8 | 1'631.5 | 858.6 | 822.5 | 877.2 | 808.9 |
| Investments in associated companies and joint ventures | 149.9 | 134.4 | 887.4 | 871.8 | – | – |
| Investment property | 355.5 | 344.2 | 330.1 | 318.4 | 25.4 | 25.8 |
| Tangible assets | 12'525.1 | 12'052.3 | 12'389.8 | 11'910.4 | 135.3 | 141.9 |
| Intangible assets | 1'523.0 | 1'417.4 | 1'470.2 | 1'351.4 | 50.8 | 64.0 |
| Other assets | 433.2 | 761.4 | 354.4 | 730.2 | 67.9 | 31.2 |
| 61'308.9 | 58'809.4 | 21'287.6 | 20'983.7 | 40'834.4 | 38'851.6 | |
| Non-current assets held for sale | 24.1 | – | 24.1 | – | – | – |
| Balance sheet total | 61'333.0 | 58'809.4 | 21'311.7 | 20'983.7 | 40'834.4 | 38'851.6 |
1 Unaudited; before consolidation of transactions between the two sectors.
Balance Sheet Liabilities
| Migros Group | Retail and industry sector 1 | Financial services sector 1 | ||||
|---|---|---|---|---|---|---|
| In CHF million | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 |
| Liabilities | ||||||
| Payables due to banks | 282.5 | 279.8 | 225.6 | 264.8 | 59.5 | 28.9 |
| Customer deposits and liabilities | 31'236.6 | 29'484.8 | – | – | 31'318.0 | 29'756.7 |
| Other financial liabilities | 2'243.4 | 2'061.8 | 2'198.6 | 2'061.0 | 44.8 | 0.8 |
| Other liabilities | 2'874.7 | 2'864.9 | 2'754.1 | 2'722.3 | 125.4 | 147.5 |
| Provisions | 124.1 | 128.0 | 104.6 | 107.7 | 19.5 | 20.3 |
| Issued debt instruments | 5'831.8 | 5'690.4 | 199.7 | 224.6 | 5'632.1 | 5'465.8 |
| Liabilities from employee benefits | 1'148.2 | 739.5 | 1'107.4 | 722.4 | 19.0 | 20.0 |
| Current income tax payables | 140.8 | 100.9 | 97.4 | 67.2 | 43.4 | 33.6 |
| Deferred income tax liabilities | 1'358.7 | 1'490.2 | 1'026.7 | 1'150.3 | 338.6 | 339.3 |
| Total liabilities | 45'240.8 | 42'840.3 | 7'714.1 | 7'320.3 | 37'600.3 | 35'812.9 |
| Total equity including non-controlling interests | 16'092.2 | 15'969.1 | 13'597.6 | 13'663.4 | 3'234.1 | 3'038.7 |
| Balance sheet total | 61'333.0 | 58'809.4 | 21'311.7 | 20'983.7 | 40'834.4 | 38'851.6 |
1 Unaudited; before consolidation of transactions between the two sectors.
Retail & Industry Sector
The balance sheet total for the Retail and Industry sector increased by 1.6% to CHF 21.3 billion as at 31 December 2014.
The carrying amount of tangible assets increased by CHF 479.4 million on the previous year to CHF 12'389.8 million as a result of extensive investment activities by Migros Group. During the past financial year, companies in the Retail and Industry sector invested CHF 1'625.3 million (previous year CHF 1'307.3 million), mainly in renewing the branch network and plants in Switzerland. Migros’ network of sales locations comprised a total of 648 sites (+ 9) at the end of 2014. 15 new Migros stores were opened, 9 replacement buildings were set up and 5 major redevelopments/expansions of stores were carried out. 6 stores were closed.
Outside of Switzerland, investments totalling CHF 122.4 million (previous year CHF 101.1 million) were made.
Intangible assets amounted to CHF 1'470.2 million as at 31 December 2014 (previous year CHF 1'351.4 million). Goodwill (intangible assets with an unlimited period of use) stood at CHF 968.6 million (previous year CHF 860.8 million). An important item in this figure is the goodwill acquired in 2007 with the acquisition of Denner.
The reduction in other assets by CHF 375.8 million to CHF 354.4 million is due mainly to the measurement of pension obligations under IAS 19.
The balance sheet structure of the Retail and Industry sector remains very healthy. Based on the current EBITDA of CHF 2'029.9 million (previous year CHF 1'985.6 million), net finance debts of CHF 998.4 million (previous year CHF 918.9 million) can be paid off within half a year. Equity fell by CHF 65.8 million – primarily as a result of the IAS 19 deficit – to CHF 13'597.6 million and corresponds to 63.8% (previous year 65.1%) of the balance sheet total.
Financial Services Sector
During the reporting year, mortgages and other customer receivables rose by 3.9% on the previous year to CHF 35.2 billion.
This marked credit growth was financed with new customer deposits. Customer deposits and liabilities increased by CHF 1.6 billion or 5.2%. Customer deposits totalled CHF 31.3 billion, corresponding to 88.9% of customer lending at the end of 2014. Migros Bank consequently continues to benefit from a comfortable refinancing structure.
Due to the positive result for the year, the bank once again managed to significantly strengthen its equity base. As at 31 December 2014, the bank’s equity amounted to CHF 3'234.1 million, significantly above the coverage required under Swiss banking law.