Cash Flow Statement
The cash and cash equivalents of Migros Group stood at CHF 6'490 million as at 31 December 2016 and increased on a currency-adjusted basis by CHF 561 million on the previous year (31 December 2015: CHF 5'929 million).
Cash flow from operating activity of CHF 2.5 billion
With cash flow from business activities of CHF 2'503 million (previous year: CHF 2'696 million), it was possible to finance in full the investments in both fixed and intangible assets totalling CHF 1'663 million as well as the acquisition of subsidiaries and other associated companies totalling CHF 84 million.
The remaining increase in liquid funds was used to repay debt, which resulted in a cash outflow from financing activity of CHF 388 million (previous year: cash inflow of CHF 282 million).
| Migros Group | Retail and industry sector 1 | Financial services sector 1 | ||||
|---|---|---|---|---|---|---|
| In CHF million | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| Cash flow from operating activity | 2'503 | 2'696 | 1'658 | 2'047 | 487 | 1'064 |
| Cash flow from investing activity | -1'542 | -1'390 | -1'595 | -1'319 | 53 | -72 |
| Cash flow from financing activity | -388 | 282 | -278 | -49 | -165 | 361 |
| Changes in cash and cash equivalents | 574 | 1'588 | -214 | 679 | 375 | 1'353 |
| Cash and cash equivalents, at beginning of year | 5'929 | 4'349 | 1'935 | 1'264 | 4'519 | 3'166 |
| Influence of foreign currency translation | -13 | -8 | -13 | -8 | - | - |
| Cash and cash equivalents, at end of year | 6'490 | 5'929 | 1'708 | 1'935 | 4'894 | 4'519 |
1 Unaudited; before consolidation of transactions between the two sectors.
At the end of 2016, cash and cash equivalents of the Retail and Industry sector came in at CHF 1'708 million, representing a fall of CHF 227 million compared with CHF 1'935 million at the end of 2015.
In 2016, cash inflows from operating activity amounted to CHF 1'658 million (previous year: CHF 2'047 million). The reduction in operating cash flow compared to the previous year is due to the higher commitment of cash and cash equivalents for time deposits at banks, receivables and inventories.
The cash outflow from investing activity came to CHF 1'595 million in the reporting period (previous year: CHF 1'319 million) and is characterised primarily by investments in both fixed and intangible assets of CHF 1'640 million. The highest investment volumes were in the Cooperative Retailing (CHF 1'156 million) as well as in the Commerce (CHF 225 million) and Industry & Wholesaling (CHF 206 million) segments.
From financing activity, the cash outflow as a result of debt repayment amounted to CHF 278 million (previous year: CHF 49 million).
At the end of 2016, cash and cash equivalents of the Financial Services sector amounted to CHF 4'894 million. This represents an increase of CHF 375 million on the previous year (CHF 4'519 million).
Cash inflows from operating activity totalled CHF 487 million in 2016 (previous year: CHF 1'064 million). This is due mainly to the increase in customer deposits and the reduction in receivables due from banks, which are greater than the cash outflow for mortgage and other customer lending.
CHF 23 million was invested in extending the bank's infrastructure. Furthermore, fixed asset securities totalling CHF 51 million were sold in the reporting year, along with tangible assets and investment property worth CHF 25 million. Overall, a cash inflow of CHF 53 million resulted from the investment activities in the reporting year (previous year: cash outflow of CHF 72 million).
Financing activity resulted in a cash outflow of CHF 165 million during 2016 (previous year: cash inflow of CHF 361 million). Of this figure, CHF 138 million has been repaid for medium-term bonds and mortgage-backed loans. A dividend of CHF 27 million was also paid out.