Cash flow statement
The cash and cash equivalents of Migros Group stood at CHF 7'614 million as at 31 December 2019 and increased by CHF 575 million (31 December 2018: CHF 7'039 million).
Cash flow business activities stood at CHF 1'820 million (previous year: CHF 1'361 million). In the past year, total investments of CHF 1'516 million were made in fixed and intangible assets. A total of CHF 131 million (previous year: CHF 41 million) was spent on the acquisition of subsidiaries/business operations and other associated companies. Adjustment to the portfolio resulted in a cash outflow from the sale of subsidiaries and other associated companies of CHF 68 million (previous year: cash inflow of CHF 8 million).
Proceeds from the issuance of long-term and medium-term bonds/mortgage-backed loans resulted in a cash inflow of CHF 393 million. This in turn led to a total cash outflow from financing activity of CHF 19 million, owing to the sharp decrease in payables due to banks and the repayment of financial liabilities. In the previous year, however, proceeds from the issuance of mortgage-backed loans and the increase in other long-term financial liabilities (including of related pension funds) resulted in a cash inflow totalling CHF 617 million.
Cash flow statement of the Retail and Industry sector
At the end of 2019, cash and cash equivalents of the Retail and Industry sector came in at CHF 2'357 million, representing a decrease of CHF 257 million (31 December 2018: CHF 2'614 million).
In 2019, cash inflows from operating activity amounted to CHF 1'382 million (previous year: CHF 1'641 million). The decrease in operating cash flow compared to the previous year is primarily the result of negative pre-tax earnings, a higher increase in other assets and liabilities compared to the previous year, as well as an increase in the amount of income tax paid.
The cash outflow from investing activity came to CHF 1'233 million in the reporting period (previous year: CHF 1'327 million) and is characterised primarily by investments in both fixed and intangible assets of CHF 1'498 million. The highest investment volumes (excluding finance leases) were in the Cooperative Retailing (CHF 980 million), Commerce (CHF 162 million) and Industry&Wholesaling (CHF 273 million) segments.
Financing activity resulted in a cash inflow of CHF 400 million in the reporting year (previous year: CHF 205 million). This can be attributed in particular to the decrease in payables due to banks and the repayment of other financial liabilities.
Cash flow statement of the Financial Services sector
At the end of 2019, cash and cash equivalents of the Financial Services sector amounted to CHF 5'334 million, which represents an increase of CHF 839 million on the previous year (CHF 4'495 million).
The cash inflow from operating activity stood at CHF 507 million (previous year: cash outflow of CHF 220 million). This is due mainly to the growth in customer deposits and liabilities, which is greater than the increase in mortgage and other customer lending.
As in the previous year, CHF 17 million was invested in extending the bank's infrastructure. The proceeds from the sale of fixed assets and investment property amounted to CHF 16 million. Furthermore, fixed asset securities and loans totalling CHF 10 million were sold in the reporting period. Overall, a cash inflow of CHF 9 million resulted from the investment activities in the reporting year (previous year: CHF 67 million).
Financing activity resulted in a cash inflow of CHF 323 million during 2019 (previous year: CHF 316 million). Of this figure, CHF 193 million was attributed to the proceeds of medium-term bonds and mortgage-backed loans. A long-term bond of CHF 200 million was also issued on 9 December 2019. A dividend of CHF 70 million was also paid out.
