Annual Report • Feb 10, 2017
Annual Report
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The world of real estate is characterised by a sense of coming and going, i.e. the ebb and flow of life.
Our professional and private lives are played out in buildings – places in which we live and work, or to put it simply, places where our lives take place. In our annual report, we not only want to give you an insight into our business performance, we also want to provide you with a profile of four properties selected from our broadly diversified portfolio. To do this, we are giving a voice to the people who have a special connection with the real estate.
The Steiner-Hug family finds their new home in Am Meggerwald in Lucerne. Page 10
The intercantonal conservatory is a tenant in the Les Pépinières building complex. Page 18
3M EMEA GmbH inaugurates the property in Langenthal as its new head office for Europe, the Middle East and Africa. Page 30
Six photographs on display in the three courtyards belonging to the Letzihof residential property. Page 52
Condominiums in the Lucerne suburbs: Am Meggerwald. Further information on page 13.
Mobimo continued to increase rental income in 2016. Profit from trading property and development services business was markedly up year-on-year. It also reported an extraordinarily high gain on revaluation and on the disposal of individual investment properties.
Profit attributable to the shareholders of MOH CHF million 2015: 103.9
¢¢ Investment properties
Net rental income
Vacancy rate
¢¢ Earnings per share excl. revaluation
CHF million
| Result | Unit | 2016 | 2015 | Change in % |
|---|---|---|---|---|
| Net rental income | CHF million | 96.2 | 94.1 | 2.3 |
| Profit on sale of trading properties and development services | CHF million | 23.9 | 5.5 | 330.5 |
| Profit on disposal of investment properties | CHF million | 34.9 | 63.8 | –45.2 |
| Net income from revaluation | CHF million | 80.7 | 34.7 | 132.3 |
| Operating result (EBIT) | CHF million | 200.3 | 170.4 | 17.5 |
| Operating result (EBIT) excluding revaluation | CHF million | 119.6 | 135.7 | –11.9 |
| Profit | CHF million | 159.4 | 105.0 | 51.9 |
| Profit attributable to the shareholders of MOH | CHF million | 158.7 | 103.9 | 52.7 |
| Profit attributable to the shareholders of MOH excluding revaluation | CHF million | 99.4 | 78.6 | 26.5 |
| Balance sheet | Unit | 2016 | 2015 | Change in % |
| Assets | CHF million | 3,031.7 | 2,952.9 | 2.7 |
| Equity | CHF million | 1,366.3 | 1,264.7 | 8.0 |
| Equity ratio | % | 45.1 | 42.8 | 5.4 |
| Return on equity | % | 13.1 | 8.9 | 47.2 |
| Return on equity excluding revaluation | % | 8.2 | 6.7 | 22.4 |
| Interest-bearing liabilities | CHF million | 1,349.4 | 1,366.7 | –1.3 |
| Ø Rate of interest on financial liabilities | % | 2.38 | 2.46 | –3.3 |
| Ø Residual maturity of financial liabilities | years | 6.9 | 7.7 | –10.4 |
| Net Gearing | % | 86.0 | 90.4 | –4.9 |
| Portfolio | Unit | 2016 | 2015 | Change in % |
| Overall portfolio | CHF million | 2,766 | 2,655 | 4.2 |
| Investment properties | CHF million | 2,112 | 2,132 | –1.0 |
| Development properties | CHF million | 654 | 523 | 25.3 |
| Gross yield from investment properties | % | 5.3 | 5.4 | –1.9 |
| Net yield from investment properties | % | 4.1 | 4.3 | –4.7 |
| Investment property vacancy rate | % | 4.8 | 4.7 | 2.1 |
| Ø Discount rate for revaluation | % | 3.75 | 4.08 | –8.1 |
| EPRA | Unit | 2016 | 2015 | Change in % |
| EPRA profit | CHF million | 51.4 | 50.8 | 1.1 |
| EPRA NAV per share | CHF | 258.53 | 244.06 | 5.9 |
| EPRA rental increase like for like | % | 0.4 | 0.8 | –50.0 |
| EPRA vacany rate | % | 4.8 | 4.7 | 2.1 |
| Headcount | Unit | 2016 | 2015 | Change in % |
| Ø Headcount (full-time basis for the period) | Number | 126.2 | 107.4 | 17.5 |
| Headcount (full-time basis) | Number | 135.7 | 107.8 | 25.9 |
| Share | Unit | 2016 | 2015 | Change in % |
| Shares outstanding1 | Number | 6,216,126 | 6,216,923 | –0.1 |
| Nominal value per share | CHF | 29.00 | 29.00 | 0.0 |
| NAV per share | CHF | 217.33 | 202.45 | 7.3 |
| Earnings per share | CHF | 25.52 | 16.72 | 52.6 |
| Earnings per share excluding revaluation | CHF | 15.99 | 12.65 | 26.4 |
| Distribution per share2 | CHF | 10.00 | 10.00 | 0.0 |
| Dividend yield | % | 3.9 | 4.5 | –13.3 |
| Share price as at 31.12. | CHF | 254.75 | 222.70 | 14.4 |
¹ No. of shares issued 6,218,170 less treasury shares 2,044 = no. of outstanding shares 6,216,126.
Distribution of paid-in capital for the 2016 financial year of CHF 10.00 per share in accordance with the proposal to the General Meeting of 28 March 2017. Some CHF 89 million was available for distribution of paid-in capital as at 31 December 2016.
Details on the long-term trends of Mobimo's key figures can be found on page 146 of the Annual Report (five-year overview).
| OVERVIEW OF MOBIMO | 2 |
|---|---|
| Our profile | 2 |
| Highlights 2016 | 3 |
| Letter to shareholders | 4 |
| Mobimo on the capital market | 6 |
| 20 |
|---|
| 22 |
| 26 |
| 28 |
| Corporate governance report | 32 |
|---|---|
| Compensation report | 46 |
| Report of the statutory auditor on the compensation report | 51 |
| Consolidated annual financial statements | 54 |
|---|---|
| Property details | 106 |
| Report of the statutory auditor on the consolidated annual financial statements | 116 |
| Reports of the independent valuation experts | 122 |
| Annual financial statements of Mobimo Holding AG | 132 |
| Report of the statutory auditor on the financial statements | 139 |
| EPRA key performance measures | 142 |
Glossary 147
Mobimo Holding AG was established in Lucerne in 1999 and has been listed on the SIX Swiss Exchange since 2005. With a real estate portfolio with a total value of more than CHF 2.7 billion, the Group is one of the leading real estate companies in Switzerland. The Mobimo portfolio comprises residential and commercial properties in first-class locations in German-speaking and French-speaking Switzerland.
The investment properties are characterised by a balanced portfolio mix and diligent management, thus guaranteeing stable revenues. The company uses its development projects to create potential for capital appreciation and gains for the entire portfolio and for third parties. The development and expansion of entire sites into lively, mixed-use districts is one of Mobimo's core competences.
The ongoing development of the market position creates added value for shareholders, customers and partners over the long term. Mobimo pursues a sustainable strategy, has a stable business model and employs highly qualified and motivated people.
In accordance with the plans of renowned Zurich-based architecture firm Gigon/Guyer, the principal, Mobimo, and total contractor, Implenia, are building 277 rental apartments – with property sizes ranging from 1.5 rooms to 4.5 rooms – as well as commercial spaces, offices and a crèche on the site that previously housed the Labitzke Farben AG factory. The Z-shaped plot measures 10,000 m2 and will feature seven publicly accessible squares. The foundation stone laying ceremony was held in September 2016 with city councillor and Head of Civil Engineering Department for Zurich City André Odermatt and some 100 guests in attendance. The development close to the Zurich-Altstetten train station is scheduled to be completed in mid-2018. Grabbing the spades at the ceremony (from left to right): Ralph Gmür (Implenia), Mike Guyer, (Gigon/Guyer), Christoph Caviezel (Mobimo), Julia Denfeld (Mobimo), André Odermatt (Zurich City Council), Jens Vollmar (Implenia), Urs Meyer (Gigon/Guyer).
In Lausanne, Project Rasude is starting to take form. The landowners SBB Immobilien and Mobimo initiated a study contract for the further development of the area between Lausanne train station and Avenue d'Ouchy, with eight architecture firms taking part. Ultimately, the team of experts, headed up by EPFL (Ecole polytechnique fédérale de Lausanne) architecture professor Bruno Marchand, unanimously recommended the Echappées project from Geneva-based architect Eric Maria for further development. Echappées stood out from the rest of the entries because of its subtle approach to harmoniously integrate the new district into the surrounding area. The project features transport connections to the city and attractive public spaces. Rasude is part of the plan for the urban development of the train station area. This also includes the redevelopment of the Lausanne train station as well as the housing together of various museums in the former train depot.
Mobimo is developing a modern urban district in central Aarau in the form of the Aeschbach district. Aeschbachhalle, a former industrial building with an impressive interior, will be at the heart of the new urban area. Following a careful renovation, this old and venerable building will be used for a range of events, including jazz concerts, general meetings, exhibitions and a lot more besides. The rental contract was signed with the main tenant in June. As the building's actual administrator, they will play a major role in making the hall the centre of the bustling district.
Profit attributable to the shareholders of MOH excluding revaluation CHF million 2015: 78.6
99.4
Return on equity % 2015: 8.9
13.1
Rental income CHF million 2015: 107.8
114.7
Georges Theiler, Chairman of the Board of Directors, and Dr. Christoph Caviezel, CEO.
We take pleasure in reporting on what emerged to be an extraordinarily successful financial year in a more challenging economic environment. Our solid business model allows us to once again report record results.
Mobimo's profit for the year 2016 totalled CHF 159.4 million (prior year: CHF 105.0 million). This included an extraordinarily high gain totalling CHF 34.9 million, generated on the disposal of three investment properties (prior year: two investment properties, CHF 63.8 million). Mobimo posted profit excluding revaluation, driven mainly by the market in 2016, of CHF 99.4 million (prior year: CHF 78.6 million). The company's operating performance allows us to propose once again to the General Meeting the distribution of a dividend of CHF 10.00 per share.
Institutional investor demand for residential property remains high in light of ultra-low interest rates. Attractive office and commercial property is also in increasingly high demand. Mobimo made no additions to its portfolio in this transaction environment, instead selling individual investment properties. The company can use the sales proceeds to reinvest in its own development pipeline at substantially higher returns. Investment volume of projects under construction totalled CHF 560 million, and that of projects being planned CHF 470 million.
Despite portfolio disposals, rental income increased once again by 6.3% to CHF 114.7 million. The reporting period and that of the prior year are only partially comparable, as the portfolio underwent major changes in 2015 and 2016: these involved the disposals of the investment properties already mentioned and the acquisition of the portfolio of Dual Real Estate Investment SA in Geneva at the end of 2015. This acquisition increased the number of rental apartments by some 700 units, to which 266 residential units from Mobimo's own project development were added in 2015 and 2016. As at 31 December 2016, the vacancy rate was 4.8% (31 December 2015: 4.7%), thus remaining at a low level. One of the measures aimed at maintaining a high level of tenant satisfaction and a low vacancy rate in the long term is the complete integration of the FM Service & Dienstleistungs AG joint venture, launched in 2014, into the Mobimo Group. The headcount rose to 135.7 full-time equivalents in response to the company's integration.
In Lausanne, Mobimo started work on the construction of Les Garages, a project which is to feature attractive commercial space in the southern part of the Flon district. Construction work on a new hotel will start in 2018: hotel operator SV Hotel is opening the first Moxy Hotel in Switzerland with 110 beds in 2019. Moxy is a successful brand of US hotel group Marriott.
Construction is currently in progress on behalf of Mobimo in Zurich, Kriens and Aarau: eight buildings are being constructed on the Labitzke site in Zurich featuring a total of 277 rental apartments and commercial and retail space. Mobimo is realising a mixed-use urban district at Mattenhof in Kriens, which marks the first step in the further development of the region Lucerne South. 56 of the 92 condominiums have already been sold in Aarau's Aeschbach district. The buyers are moving into their new homes from the beginning of 2017. Construction work is also in progress on the 167 rental apartments that are earmarked for completion in 2018.
Under Development for Third Parties, a project was sold on the Mattenhof site in Kriens in 2016 and the 3M EMEA office building in Langenthal was handed over ready for occupancy in July 2016. With its acquisition of a two-thirds holding in BSS&M Real Estate AG in Zurich, Mobimo further expanded its development activities for third parties, which were very much in high demand. The largest number of condominium ownership transfers recognised in net income in 2016 related to the development Am Meggerwald in Lucerne.
The real estate market remains attractive given constantly low interest rates, but also thanks to Switzerland's attractiveness in an international context. Demand remains high for residential and working space in urban centres and in high-value properties. With its broadly diversified portfolio, well-filled development pipeline and its nearly twenty years of experience, Mobimo is well prepared for the future. Its flexible business model enables it to seize targeted opportunities and react early to market changes. The Board of Directors and the Executive Board therefore expect to continue to post good operating results in future that will enable the company to make attractive dividend distributions to shareholders.
Thank you for the trust you have placed in our company and its staff.
Georges Theiler Dr. Christoph Caviezel Chairman of the Board of Directors CEO
The capital market acknowledged the successful business performance reported by Mobimo. The share price gained ground of 14.4%. The Board of Directors will propose once again to the Annual General Meeting a distribution of CHF 10.00 per share for the 2016 financial year.
The registered shares of Mobimo Holding AG are traded on the SIX Swiss Exchange in Zurich and are listed in accordance with the Standard for Real Estate Companies.
| 1110 887 |
|---|
| CH001110 8872 |
| MOBN SW Equity |
| MOBN.S |
Since its initial public offering in June 2005, the Mobimo share – with an average annual performance (total return) of 6.5% – has been characterised by steady value growth and a regular, attractive dividend distribution. Due to this active growth, Mobimo's market capitalisation has increased from CHF 490 million (31 December 2005) to CHF 1,584 million (31 December 2016) during the same period.
CHF million
Measured in terms of its market capitalisation as at 31 December 2016 and the total value of its portfolio, Mobimo is the fourth largest real estate company listed on the SIX Swiss Exchange. The market capitalisation of Mobimo Holding AG increased by some 14.4% during 2016 and stood at CHF 1,584 million at the end of the year (prior year: CHF 1,385 million).
¢¢ NAV per share (diluted)
As at 31 December 2016, net asset value (NAV) per share amounted to CHF 217.33 (prior year: CHF 202.45), while diluted NAV per share stood at CHF 217.33 (prior year: CHF 202.45). The difference compared to the prior year can be mainly attributed to the capital repayment, the profit for the year and the changes recognised in other comprehensive income (pension liabilities under IAS 19 and financial instruments qualifying as cash flow hedges).
As at 31 December 2016, Mobimo's share price of CHF 254.75 was 17.2% above the diluted NAV of CHF 217.33. The liquidity of the Mobimo share and its trading volume were both lower than in the prior year. An average of 10,035 (prior year: 11,638) shares were traded each day, generating an average turnover of around CHF 2.2 million (prior year: CHF 2.4 million) per day. Overall, the trading volume of the Mobimo share in 2016 stood at CHF 581.2 million (prior year: CHF 613.8 million).
Mobimo's outstanding business performance was also reflected in that of its share price. Starting the year with a share price of CHF 222.70, the price of the Mobimo share increased to CHF 254.75, thus rising by 14.4%. Viewed over a five-year period, the dividend-adjusted share price has risen by around 45%. During the same period, the SPI Swiss Performance Index and the SXI Real Estate Index increased by 68% and 45%, respectively.
Since its initial public offering, Mobimo has consistently paid out high dividends and will in future also pursue a long-term and shareholder-friendly dividend distribution policy. A minimum of CHF 9.00 per share has been paid out to Mobimo shareholders each year in the form of a withholding tax-exempt and tax-free nominal value repayment or capital repayment since the Group was listed in 2005. Over the past five years, around CHF 292 million has been repaid to shareholders in the form of dividend distributions. During this period, the average annual dividend yield (nominal value repayment or capital repayment) has been around 4.5%, calculated on the basis of the respective year-end share price. The total return per share (incl. price changes) totalled 18.9% in 2016. The attractive dividend distribution policy is also being continued for the 2016 financial year: subject to the approval of the Annual General Meeting, the dividend per share for the 2016 financial year should amount to CHF 10.00 (prior year: CHF 10.00). Based on the 2016 year-end price, the dividend yield of the Mobimo share thus stands at an attractive 3.9%.
Dividend per share
In 2016, earnings per share excluding revaluation amounted to a solid CHF 15.99 (prior year: CHF 12.65); the amount including revaluation was CHF 25.52 (prior year: CHF 16.72).
As at 31 December 2016, the following shareholders held 3% or more of the share capital:
According to the SIX Swiss Exchange definition, the free float stood at 100% as at 31 December 2016.
Individuals
%
| Unit | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|
| Ratios as at 31.12. | ||||||
| Share capital | CHF million | 180.1 | 180.2 | 180.3 | 180.3 | 180.3 |
| No. of registered shares issued | Number | 6,208,913 | 6,214,478 | 6,216,606 | 6,218,170 | 6,218,170 |
| Of which treasury shares | Number | 8,744 | 2,148 | 1,623 | 1,247 | 2,044 |
| No. of registered shares outstanding |
Number | 6,200,169 | 6,212,330 | 6,214,983 | 6,216,923 | 6,216,126 |
| Nominal value per registered share |
CHF | 29.00 | 29.00 | 29.00 | 29.00 | 29.00 |
| Share data as at 31.12. | ||||||
| Earnings per share | CHF | 12.30 | 13.14 | 10.00 | 16.72 | 25.52 |
| Earnings per share excluding revaluation |
CHF | 7.83 | 10.09 | 9.69 | 12.65 | 15.99 |
| NAV after options and convertible bond |
CHF | 193.99 | 200.01 | 195.93 | 202.45 | 217.33 |
| Gross dividend1 | CHF | 9.00 | 9.50 | 9.50 | 10.00 | 10.00 |
| Dividend yield (distribution yield) | % | 4.1 | 5.1 | 4.8 | 4.5 | 3.9 |
| Payout ratio | % | 73.2 | 72.3 | 95.0 | 59.8 | 39.2 |
| Share price | ||||||
| Share price – High | CHF | 228.00 | 221.10 | 200.70 | 229.40 | 254.75 |
| Share price – Low | CHF | 202.60 | 182.80 | 182.00 | 190.50 | 206.10 |
| Share price at 31.12. | CHF | 218.90 | 186.10 | 199.20 | 222.70 | 254.75 |
| Average no. of shares traded per day |
Number | 9,309 | 11,132 | 8,672 | 11,638 | 10,035 |
| Market capitalisation at year-end | CHF million | 1,359.1 | 1,156.5 | 1,238.3 | 1,384.8 | 1,584.1 |
1 Intended distribution of paid-in capital for 2016 financial year of CHF 10.00 per share in accordance with the proposal to General Meeting of 28 March 2017.
For the long-term funding of the real estate portfolio, Mobimo has issued three bonds, with which it aims to capitalise on the attractive interest rate environment and further diversify its financing instruments. The three bonds are traded on the SIX Swiss Exchange in Zurich. The total financing volume amounts to CHF 515 million.
| Issue date | 29.10.2013 | 19.05.2014 | 16.09.2014 |
|---|---|---|---|
| Code | MOB13 | MOB14 | MOB141 |
| Swiss security no. | 22,492,349 | 24,298,406 | 25,237,980 |
| ISIN code | CH0224923497 | CH0242984067 | CH0252379802 |
| Issue volume | CHF 165 million | CHF 200 million | CHF 150 million |
| Bloomberg | MOBN SW | MOBN SW | MOBN SW |
| Reuters | 785VD6 | 792ZMZ | 797G6K |
| Interest rate | 1.5% | 1.625% | 1.875% |
| Term | 5 years | 7 years | 10 years |
| Maturity | 29.10.2018 | 19.05.2021 | 16.09.2024 |
| Price as at | |||
| 31.12.2016 | CHF 102.45 | CHF 105.80 | CHF 110.00 |
| Yield to maturity | 0.160% | 0.294% | 0.551% |
• Capital increase of around CHF 193 million, New registered shares are issued
• LO Holding Lausanne-Ouchy SA is acquired, Share capital is increased by CHF 27 million
• Capital increase of CHF 143 million
• Private placement, Share capital of CHF 181 million
• Majority shareholding in Dual Real Estate Investment SA is acquired
• Bond with a volume of CHF 165 million is issued
• Convertible bond with a volume of CHF 175 million is placed
• Capital increase of CHF 149 million
• Mobimo Holding AG is floated on the stock exchange, Issue volume: CHF 112 million
The Am Meggerwald development in Lucerne is the new home of the Steiner-Hug family. It is a perfect match for what the Steiner-Hugs were looking for – with plenty of space, a patio and the feeling of living in a family home.
"Our home is situated in an unbelievably beautiful location. When we take a look out the window, we can see cows grazing on green hills, Pilatus on the horizon and the edge of the Meggerwald right next to the building. What makes the property even better is that it is in the sixth-largest city in Switzerland and it takes a bus journey of less than 15 minutes to reach the centre of Lucerne.
We have lived in this district before and had walked past the property frequently with the pushchair. So, once we found out that the City of Lucerne had sold the property to Mobimo, we kept our ear to the ground and followed the development of the project with great attention. We consider it a happy stroke of fate that Mobimo ultimately designed and built almost exactly the type of property we were looking for – a large apartment with a patio and the feel of a family home.
The first days after the move were particularly exciting for our children. There was just so much to discover – from the switchboard in the cellar with numerous buttons to the intercom system with a video screen and the remote control for the blinds. What they particularly like now is the fact that they have their own room where they can spend time alone. My partner and I have tried our hands at gardening in the plant bed next to the patio. Every now and then, all four of us go to the Vita-Parcours fitness trail in the nearby woods or ride the bikes down to the Swiss Museum of Transportation in Lucerne. Yes, we found what we were looking for."
Modern building in idyllic surroundings: Am Meggerwald. Further information on page 13.
The Mobimo real estate portfolio is broadly diversified in terms of location and use. The newly constructed investment properties continually enhance the portfolio's quality.
The building was home to the sorting centre for the post office for more than 50 years. It became part of the Mobimo portfolio in 2010 and underwent renovations between 2011 and 2013. Horizon is located next to the Lausanne train station and houses attractive office space.
Fair value: TCHF 67,100 Usable area: 8,072 m² Completion: 1962/2013
The development comprises two blocks of residential apartments for senior citizens, featuring 48 apartments and a care home, and is built on the site of a fruit-pressing plant. The residents in the apartments for senior citizens can decide individually for themselves the extent of the support they would like to get in their daily routine.
Fair value: TCHF 76,730 Usable area: 10,625 m² Completion: 2014
The name of the building complex, which features office space, commercial space and residential properties, is a homage to the Mercier family, who were the founders of a company that owned the Flon district in the 19th century. Fair value: TCHF 66,270 Usable area: 10,399 m² Completion: 2008
The 16-storey tower is a steel-frame construction with a façade that is almost entirely glazed. The building was completely renovated in 2001 and three further floors were added. The representative office building will be used entirely by one tenant. The night lighting will match the company's colour scheme.
Fair value: TCHF 62,290 Usable area: 8,226 m² Completion: 1974/2001
Regensdorf
In addition to the three properties containing condominiums, Mobimo has built six further buildings featuring rental apartments in Regensdorf. The layout of the development has been designed as such that there is a shared courtyard in the middle of each trio of buildings. The buildings have a timeless and minimalistic design.
Fair value: TCHF 60,000 Usable area: 8,716 m² Completion: 2015
The elegant and uncomplicated Am Meggerwald residential area nestles up to the adjacent hillside. The 24 condominiums that make up the two buildings each have a large outdoor area in the form of a balcony or a garden. The renaturalised Büttenenbach flows through the grounds of the development.
Sales volume: TCHF 30,083 Usable area: 3,032 m² Completion: 2016
The property with 72 apartments is reminiscent of the commercial and industrial buildings that characterise the district. The four-storey building is bordered by a garden and patio area on all four sides. The Letzihof development boasts three interlinked courtyards which can be used by residents, for example as a recreational area. Fair value: TCHF 65,290 Usable area: 6,977 m² Completion: 2016
Townhouse, maisonette and loft apartments: there is a varied selection of condominiums available in the Aeschbach district. The 92 residential units are housed in a wide range of building types.
As at 31 December 2016, Mobimo's real estate portfolio comprised 148 properties. It can be broken down into investment properties with a value of CHF 2,112 million and development properties with a value of CHF 654 million.
2015: 139 148
Total portfolio value CHF million
carrying amounts of properties by economic area (overall portfolio).
| CHF million | 2016 | % | 2015 | % |
|---|---|---|---|---|
| Total portfolio value | 2,766 | 100 | 2,655 | 100 |
| Investment properties | 2,112 | 76 | 2,132 | 80 |
| Commercial investment properties |
1,388 | 50 | 1,372 | 52 |
| Residential investment properties |
724 | 26 | 760 | 28 |
| Development properties | 654 | 24 | 523 | 20 |
| Commercial properties (investment) |
209 | 8 | 171 | 6 |
| Residential properties (investment) |
140 | 5 | 125 | 5 |
| Commercial properties (trading) |
59 | 2 | 29 | 1 |
| Residential properties (trading) |
246 | 9 | 198 | 8 |
Portfolio with a focus on the economic areas of Zurich and Lausanne/Geneva.
Properties Number
76% of the real estate portfolio comprises investment properties. These are widely diversified in terms of both their location – in Switzerland's major economic areas – and type of use. The annual potential rental income generated by the rentable area of 462,000 m² as at 31 December 2016 was CHF 112 million, producing stable and predictable income.
| 979,319 |
|---|
| 48,775 |
| 3.6% |
| 175,657 |
| 810,766 |
| 43,357 |
| 5.1% |
| 164,276 |
| 146,842 |
| 8,719 |
| 2.4% |
| 41,059 |
| 126,882 |
| 7,778 |
| 13.9% |
| 53,695 |
| 47,738 |
| 3,694 |
| 4.9% |
| 27,309 |
%
Mobimo manages the portfolio through its own portfolio management team, which gives it proximity to the market and to its tenants. Value is maintained and increased by cultivating relationships with tenants, ensuring a high level of occupancy, imposing lean cost management and implementing appropriate marketing strategies.
%
The five biggest tenants generate 20.6% of rental income. The existing fixed-term rental agreements primarily have a medium to longterm maturity profile. The average residual term is 6.0 years.
%
Length of existing fixed rental agreements as at each year-end
Mobimo feeds its own investment portfolio by means of targeted ongoing development of residential and commercial properties. The newly constructed investment properties further enhance the portfolio's quality.
Mobimo is currently planning and realising properties with a total investment volume of around CHF 1,030 million, which breaks down into CHF 850 million for investment properties for its own portfolio and CHF 180 million for condominiums to be sold. In addition to developments for its own portfolio and for the sale of condominiums, Mobimo is also active in the area of development services for third parties. Its offering ranges from area, site and project developments to turn-key real estate investments for institutional and private investors. The form taken by each cooperation with a partner depends on the specific requirements and on the project phase reached.
| 31.12.2016 | |
|---|---|
| French-speaking Switzerland | |
| Own-portfolio development | 35% |
| Development of condominiums for sale | 0% |
| Planned investment volume | CHF 365 million |
| Zurich area | |
| Own-portfolio development | 16% |
| Development of condominiums for sale | 0% |
| Planned investment volume | CHF 165 million |
| North-western Switzerland | |
| Own-portfolio development | 14% |
| Development of condominiums for sale | 8% |
| Planned investment volume | CHF 230 million |
| Central Switzerland | |
| Own-portfolio development | 17% |
| Development of condominiums for sale | 10% |
| Planned investment volume | CHF 270 million |
1 Share of total investment volume of CHF 1,030 million.
Mobimo develops sites in first-class locations in Switzerland into modern, mixed districts with high-quality architecture and urban design. The map below shows the most important sites and their surrounding areas.
Music is also being made in the Flon district, as the cantonal conservatory is a tenant in the Pépinières building complex. Director Hervé Klopfenstein chose Flon as the location for the academy with good reason.
The names of the three buildings that make up the Pépinières complex are simply A, B and C. The reserved yet functional buildings A and B act as an elegant frame around the star of the trio: building C with its eye-catching façade – a filigree concrete web – and the leafy, public roof terrace, from where you can watch life go by around you in the Flon district. It's more than likely that you will see one or two passers-by carrying instrument cases. This is because Les Pépinières is not just home to restaurants, a bar, offices and a bowling lane, it also houses two departments of the intercantonal conservatory. Buildings A and B feature teaching and practice rooms for the jazz and contemporary music departments, as well as the BCV Concert Hall, which is multi-functional and can seat around 250 guests.
The conservatory's move to the lively Flon district in 2014 can largely be attributed to its Director, the renowned conductor Hervé Klopfenstein. Housing the conservatory in an ivory tower would be something that was inconceivable for the charismatic musician. "As art and culture belong on the streets, among the people, a conservatory must also try to ensure that it plays a role in society." Klopfenstein wants to do away with any feelings of adversity or reservation and hopes to communicate the spirit and joy of music. This credo is also reflected in his educational concept: "Performing on stage is a key tenet of our teaching from the very start." This is attested to by the numerous concerts held in the BCV Concert Hall and the diverse district every year, which add another facet to the area.
Simple name, striking appearance: Building C.
Mobimo's long-term strategy is geared towards qualitative growth based on a balanced portfolio mix and active portfolio management. The company ensures that its activities are solidly financed and sustainable.
Mobimo plans, builds and maintains high-yield investment properties. The investment portfolio comprises commercial, industrial and residential properties with broad-based rental income and correspondingly steady returns. Through its development properties, Mobimo generates considerable upside potential and capital gains. This area of activity includes the sale of condominiums. Development for Third Parties offers planning and implementation services for institutional and private investors. This covers all areas of planning, including the handover of turn-key properties.
Mobimo has solid financing and a high equity ratio of at least 40%. In addition to this long-term guaranteed financing, the expansion of the company is based on Mobimo's core competences: buying/ selling, development and portfolio management.
The company uses the Mobimo brand in its communication with investors, media, analysts and tenants. The Group brand is sometimes linked with targeted sponsorship and marketing measures. Communication and marketing at project level are generally tied to an image developed by Mobimo and are given project names that correspond to the objective, location and target audience. Although creative freedom is ensured, the Mobimo brand is positioned in all project marketing so that the sender and the responsibilities are always clear.
Mobimo strives to gradually grow its real estate portfolio. This growth takes place primarily through the construction of investment properties for the company's own portfolio as well as through the acquisition of individual properties and portfolios. Growth may also be achieved via company takeovers.
The decision to grow is taken when the elements of price, location and future prospects come together in such a way as to create value for shareholders. Mobimo invests in promising locations in Switzerland. It sees these primarily as the economic areas of Zurich and Lausanne/Geneva, together with those of Basel, Lucerne/Zug, Aarau and St. Gallen. Investments are only made in sustainably good locations.
Generally, the strategic investment portfolio comprises approximately one-third residential usage, one-third office usage and onethird other commercial usage.
The real estate portfolio is optimised on an ongoing basis. Value is rigorously maintained and increased by cultivating relationships with tenants, ensuring a high level of occupancy, optimising costs and implementing effective marketing strategies.
Real estate development focuses on the following areas:
For Mobimo, sustainability means striking a balance between generating profits today and preserving and enhancing value over the long term. Quality of life is reflected in the design of living, leisure and working spaces. In addition to economic aspects, Mobimo also incorporates environmental and socio-cultural factors in its activities. This results in added value for both shareholders and the users of Mobimo properties.
Mobimo can borrow on both a short and long-term basis. Equity should represent at least 40% of total assets.
Mobimo shares are characterised by steady value growth and regular, attractive payouts.
| Development for Third Parties |
Development properties |
Investment properties |
||
|---|---|---|---|---|
| Buying/selling | Development | Portfolio management | Solid financing | |
| • Successful acquisitions • Good regional and user specific diversification |
• Many aspects to site • Planning and realising residential and commercial properties • Planning and realising condo miniums for third parties • Considering the needs of the environment |
• Strategic development • Portfolio optimisation • Considering environmental, economic and social aspects • Reacting quickly and flexibly to changes in the market |
• Appropriate equity ratio for further qualitative growth • Long-term guaranteed financing at excellent conditions |
Mobimo's successful business performance in 2016 exceeded the record results it achieved in the previous year. The main contributors to this pleasing result were the net income from revaluation, the further growth in rental income as well as the successful disposals of development services and condominiums. We also sold a number of individual investment properties.
| Unit | 2016 | 2015 | Change in % | |
|---|---|---|---|---|
| Net rental income | CHF million | 96.2 | 94.1 | 2.3 |
| Profit on sale of trading properties and development services |
CHF million | 23.9 | 5.5 | 330.5 |
| Net income from revaluation |
CHF million | 80.7 | 34.7 | 132.3 |
| Profit on sale of investment prop erties |
CHF million | 34.9 | 63.8 | –45.2 |
| Operating result (EBIT) including revaluation |
CHF million | 200.3 | 170.4 | 17.5 |
| Financial result | CHF million | -28.5 | –33.6 | –15.4 |
| Tax expense | CHF million | -15.1 | –34.1 | –55.6 |
| Profit | CHF million | 159.4 | 105.0 | 51.9 |
| Profit attributable to the shareholders of MOH |
CHF million | 158.7 | 103.9 | 52.7 |
| Profit attributable to the shareholders of MOH excluding revaluation |
CHF million | 99.4 | 78.6 | 26.5 |
Mobimo achieved new record results thanks to a profit of CHF 159.4 million (prior year: CHF 105.0 million), which represents a 51.9% increase on the previous year. Profit attributable to shareholders including revaluation grew by 52.7% to CHF 158.7 million (prior year: CHF 103.9 million) and excluding revaluation by 26.5% to CHF 99.4 million (prior year: CHF 78.6 million). Earnings per share also increased significantly, amounting to CHF 25.52 (prior year: CHF 16.72), whereas earnings per share excluding revaluation grew to CHF 15.99 (prior year: CHF 12.65). This ensured that Mobimo recorded the highest figures in these two areas in the history of the company.
Income from rentals increased by 6.3% to CHF 114.7 million in the 2016 financial year (prior year: CHF 107.8 million). The cost/income ratio arising from direct expenses for rented properties was slightly up on last year, coming in at 16% (prior year: 13%). This resulted in net rental income amounting to CHF 96.2 million (prior year: CHF 94.1 million), which corresponds to an increase of 2.3% on the previous year. Over the course of the year, the investment property in Zurich, Letzigraben 134–136 was transferred to the portfolio. The property harbours potential rental income (target rental revenues) of over CHF 2 million per year. The sale of three investment properties, in contrast, resulted in a CHF 5 million reduction in potential rental income. The share of rental income from residential usage fell slightly as at 31 December 2016 to 28% (prior year: 29%). Thanks to targeted portfolio diversification, Mobimo also continued to maintain a balanced usage mix. Residential usage, office usage and other commercial usage are each set to account for approximately 30% of the investment portfolio.
Future potential rental income is set to gradually increase with the realisation of the projects in the current pipeline. The current total investment volume of the projects that will be realised for the company's own portfolio stands at some CHF 480 million. These properties are:
The projects account for potential rental income in excess of CHF 25 million per year.
Other use mainly comprises car parks and ancillary uses.
The investment properties generated a net yield of 4.1% in the 2016 financial year (prior year: 4.3%). The lower net yield in comparison to the previous year was mainly the result of the increase in the valuation of the investment properties, which was driven by the market. As at 31 December 2016, the vacancy rate was 4.8%, thus remaining at practically the same low level as the prior year (prior year: 4.7%). The low vacancy rate was attributed to good rental income and active portfolio management.
Income from the sale of trading properties and development services amounted to CHF 151.8 million (prior year: CHF 86.2 million), which resulted in a profit from trading properties and development services of CHF 23.9 million (prior year: CHF 5.5 million). This result includes valuation allowances totalling CHF 7,6 million, which are mainly due to the valuation of the St. Moritz, Vai Maistra and St. Erhard, Längmatt projects. In total, 47 condominiums, three plots of land and the completed property Langenthal, Kühlhausstrasse were transferred to new owners. The transferred condominiums are mainly related to the Lucerne, Büttenenhalde project and the transferred plots of land are:
The high demand in the transaction market was used to sell three investment properties, realising attractive gains. The sales generated proceeds of CHF 158.5 million (prior year: CHF 236.8 million) and net income of CHF 34.9 million (prior year: CHF 63.8 million). Mobimo reinvests the cash inflow from sales in the realisation of projects from the pipeline.
Driven mainly by the market, the average discount rate for revaluations fell to 3.75% as at 31 December 2016 (prior year: 4.08%). This has had a positive impact in particular on the valuations of residential properties and construction projects. The revaluation of investment properties and of investment properties under construction resulted in a net income from revaluation of CHF 80.7 million (prior year: CHF 34.7 million).
The full acquisition of FM Service &Dienstleistungs AG and the purchase of a majority interest in BSS&M Real Estate AG in the 2016 financial year has seen Mobimo further expand its service offering for customers as well as its range of services in Development for Third Parties. The income generated from the services provided by the two companies is also offset by expenditure in HR, Operations and Administration. As a result of the full acquisition, the average number of FTEs rose to 126.2 in 2016 (prior year: 107.4). As at the reporting date of 31 December 2016, there were 135.7 FTEs (prior year: 107.8). The tax rate applicable in one canton from 2019 was reduced in a referendum held in the first half of 2016. This resulted in a positive non-recurring item in the calculation of deferred tax, which considerably reduced tax expense in 2016.
As at the end of the 2016 financial year, total assets increased by 2.7% over the prior year period to CHF 3,031.7 million (prior year: 6.7%). This was due mainly to the growth of the real estate portfolio to CHF 2,765.6 million (prior year: CHF 2,654.6 million). The share of non-current assets in total assets was down slightly as at the end of the financial year to 82.6 % (prior year: 83.6%).
| Unit | 2016 | 2015 | Change in % | |
|---|---|---|---|---|
| Non-current assets | CHF million |
2,502.7 | 2,467.7 | 1.4 |
| Current assets | CHF million |
529.0 | 485.2 | 9.0 |
| Equity | CHF million |
1,366.3 | 1,264.7 | 8.0 |
| Return on equity in cluding revaluation |
% | 13.1 | 8.9 | 47.2 |
| Return on equity ex cluding revaluation |
% | 8.2 | 6.7 | 22.4 |
| Liabilities | CHF million |
1,665.4 | 1,688.2 | –1.4 |
| • Current liabilities | CHF million |
203.2 | 138.3 | 46.9 |
| • Non-current liabilities |
CHF million |
1,462.2 | 1,549.9 | –5.7 |
| Equity ratio | % | 45.1 | 42.8 | 5.4 |
With an equity ratio of 45.1% as at 31 December 2016 (prior year: 42.8%), Mobimo continues to have a very solid capital base. According to the corporate strategy, the equity ratio should not fall below 40%. At 3.9, the interest coverage factor is clearly above the targeted 2.0. This means that Mobimo is readily able to finance its financial obligations from its operating activities. With regard to its capital structure, Mobimo aims to achieve long-term Net Gearing of a maximum of 150%. On 31 December 2016, Mobimo recorded Net Gearing of 86.0% (prior year: 90.4%).
Investment activities at Mobimo focus on the realisation of projects. As at 31 December 2016, the pipeline contained a total investment volume (including land) of some CHF 1,030 million. The volume can be broken down as follows:
In addition to the volume in the pipeline, there is also a medium-term total investment potential in excess of CHF 1 billion from ongoing site developments.
Interest coverage factor
CHF million
CHF million
A proven business model and the renowned expertise within the company permit Mobimo to continue to look to the future with confidence, despite operating in an environment that is becoming increasingly challenging. The company intends to continue with its attractive dividend policy and will focus on the secure realisation of construction projects in the 2017 financial year. The own-portfolio developments will continue to further improve the quality of the portfolio. The Development for Third Parties business area will be expanded to meet demand. Condominiums will only be constructed on selective basis. The focus within portfolio management will be placed on increasing rental income and customer satisfaction. Mobimo will continue to maintain a strict cost management system and a low vacancy rate.
Manuel Itten CFO
In 2016, Mobimo once again achieved outstanding results in the world-leading sustainability ratings. This was attributable in particular to Mobimo implementing its strategy and meeting environmental goals.
For more than five years, Mobimo has incorporated sustainability targets into its strategy, issued reports in accordance with GRI G4 and invited external assessors to review its sustainability performance. There are three dimensions to Mobimo's strategy: the economy, the environment and society. The Real Estate Committee of the Board of Directors is the top body responsible for reviewing sustainability targets and results. The sustainability team is responsible for operational implementation.
Scale from 5 to 1 (best)
In 2015, Mobimo developed an internal sustainability rating. This makes it possible to compare the quality of projects and real estate as well as the average value of residential and commercial properties. In the case of investment properties, the internal rating allows the company to identify areas where action is needed and draw up improvement measures. In the case of development properties, it also helps specify the high sustainability demands.
Kriens, Mattenhof Aarau, Aeschbach district Lucerne, Am Meggerwald
26 Mobimo Annual Report 2016
Sustainability analysis of selected projects
Residential development Am Meggerwald, Lucerne
| Certificate | |
|---|---|
| Special structural features |
Wheel chair access, and increased noise reduction measures. |
| Local public infrastructure |
Bus stop next to property, tunnel under the development, and direct access to vehicle storage facilities. |
| Building services | Heat pump and comfort ventilation. |
| Biodiversity | Restoration of the precursor to the Büttenenbach development, and native plants planted on roof (Lucerne mixture 1). |
| Concept | Combination of contemporary architecture with idyllic rural surroundings, each unit has an optimal location, and there is a wide range of room concepts for every target group. |
The basic principle behind the sustainability strategy is the balance between generating profits and safeguarding the future of the company. More information in this regard can be found on pages 6 (Share price), 7 (Shareholders and Dividends) and 22 (Business performance).
In performing its core competence – the planning and realisation of high-quality living and working spaces – Mobimo makes an important contribution to society as a whole. Since major projects have a marked effect on townscapes, social interaction and demographic structures, Mobimo conducts thorough analyses into the environment, development and requirements.
Mobimo's workforce of 147 is composed of 51% women (2015: 57%) and 49% men (2015: 43%). Highly qualified employees make Mobimo's business success possible, which is why Mobimo promotes their training and further development. In 2016, 24% of employees took advantage of this training and development opportunity. The number of employees grew by 27.8% last year. This was chiefly attributable to the integration of FM Service & Dienstleistungs AG. The employee turnover rate is 8.16%.
Mobimo regularly assesses the satisfaction of its customers. The criteria of real estate quality, service quality and customer care are incorporated into the survey.
1 Buyers. 2 Tenants, residential properties.
The top priority in relation to the environment is to cut the portfolio's energy consumption and emissions. The energy-consuming space for each property is calculated on the basis of the plans in accordance with SIA guidelines. Energy consumption for heating corresponds to the value measured and billed for each investment property. Projections are currently only necessary for electricity consumption. The basis used for the calculation of CO2 emissions is the heating system, type of energy and consumption, including electricity, in kilowatt hours (kWh).
| 2011 (baseline year) |
2015 (actual) |
2016 (actual) |
Change in %1 |
Change in %2 |
|
|---|---|---|---|---|---|
| Energy-consuming space (m²) |
401,392 | 574,329 | 597,732 | 4 | 49 |
| Energy consump tion – electricity, heating (MWh) |
85,947 | 89,737 | 89,887 | 0 | 5 |
| Energy intensity (kWh/m²) |
214 | 156 | 150 | –4 | –30 |
| Emissions (tCO2eq) | 13,931 | 14,984 | 14,390 | –4 | 3 |
| Emissions intensity (kgCO2eq/m²) |
35 | 26 | 24 | –8 | –31 |
Key portfolio figures for energy and emissions
Verification: Independent Assurance Report, available at www.mobimo.ch
1 Between 2015 (actual) and 2016 (actual).
2 Between 2011 (baseline year) and 2016 (actual).
The energy-consuming space per 2016 has significantly increased by 49% since 2011 and by 4% since 2015. With an energy intensity of 150 kWh/m², the objective set for 2016 (181 kWh/m2 ) was outperformed by 17%. With an emissions intensity of 24 kgCO₂eq/m², the reduction target for 2016 (28 kgCO₂eq/m²) was also topped by 14%.
With the Aeschbach district in Aarau, Mobimo is developing the first district in Switzerland to be awarded the German Sustainable Building Council (DGNB, Silver) certification. This comprehensive sustainability label takes into account not only environmental but also social and economic factors.
The minimum standard for new buildings is the Minergie standard. Another objective is to constantly improve energy efficiency in the portfolio.
2015: 100 100
Investment properties Certified (in %)
2015: 23.6 20
Mobimo achieved outstanding results for world-leading standards and ratings in 2016. EY compiles the assurance report for energy and emissions data.
GRI
Mobimo produces its sustainability report in line with GRI G4 Comprehensive guidelines. The report is available at www.mobimo.ch.
Mobimo improved by 15 points year on year (total 72/100 points), and its portfolio is once again located in the GREEN STAR field (best quadrant). As such, it is outperforming both its peer group and GRESB participants on average.
With a score of B, (on a scale from A to F), Mobimo gained the status of Sector Leader Real Estate in the DACH region. This places Mobimo in the top 11% of companies in the industry.
Mobimo reports its key performance and cost metrics in accordance with the Best Practices of the EPRA Reporting and Accounting Committee. More information on page 142.
Mobimo's risk management must identify risks as soon as possible, evaluate them and achieve a sensible balance between risks and returns using appropriate measures.
The overarching risks are based on the corporate strategy. Mobimo defines risk as any event that could negatively impact the achievement of its objectives and existing business.
The processes applied are subject to regular review based on risk management principles in order to take account of changes in market conditions and in the activities of the Group. The aim is to use existing training and management guidelines and optimal management processes to maintain a disciplined and constructive control environment in which all staff can fulfil their function and exercise their duties in the best way possible. Risk management is part of the processes of the integral management system.
The risk management process covers all activities for handling risks in the company on an ongoing and systematic basis. The following graphic illustrates the key steps of this process: identification, description, management, monitoring and controlling various risk types.
Further information on the risks to which Mobimo is exposed can be found in the Notes to the Consolidated Financial Statements.
Internal control and risk management are performed by Finance. As the most senior management body, the Board of Directors is responsible for risk management. The Audit and Risk Committee (AC) supports the Board of Directors by means of preparatory work, audits and clarification in respect of risk assessment.
The AC also monitors Internal Controlling, which operates in accordance with the principles of Mobimo's risk management concept. The Executive Board is responsible for implementing risk management, particularly the transparent, timely and active management of risks. A formal internal audit is not appropriate due to the size of the company.
Management prepares an annual risk inventory for the AC, setting out significant risks by risk category. A risk owner is assigned to each risk. The impact and measures implemented are analysed and then evaluated on the basis of their likelihood of occurring and impact (financial and reputational damage). Where necessary, measures are defined for the ongoing management of the identified risks. Further information on responsibilities and the organisation of risk management can be found in the Corporate Governance report.
At the beginning of December, 3M EMEA GmbH cut the ribbon on its new head office in Langenthal. Marco Tondel, Head of Development for Third Parties, was responsible for developing and implementing the project.
When drafting the plan, the Zurich architecture firm Marazzi and Paul applied the guiding principles of transparency and communication. This is evident in the bright atrium used for meetings and exhibitions or in the open-plan design of the actual working areas. I am also very impressed by the high-quality ceramic façade and the colouring, which is inspired by the rusty patina of the railway station and its surroundings.
The issue of sustainability was important to everyone involved in the project. 3M pursues sustainability goals that are ambitious by global standards and was careful to ensure that the new location fulfilled its own specific requirements. The building is Minergie-certified and is supplied by groundwater heat pumps. Its ideal location right next to Langenthal railway station also means that many employees can come to work by public transport.
The completion of the building marks the first step in the long-term regeneration and development of the industrial zone north of Langenthal railway station. The area is one of the canton's development priorities and will be transformed over the coming years. Mobimo will also play a major role in this transformation.
Impressive atrium: 3M EMEA's new head office.
Mobimo values corporate governance as a key component of corporate management. For the company, it means managing and monitoring the company in a responsible way while creating long-term added value.
The Corporate Governance report is based on the structure of the SIX guideline concerning corporate governance information (RLCG). Cross-references are made to other sections of the Annual Report in order to avoid repetitions.
An overview of all Group companies and shareholdings can be found in Note 34 to the consolidated annual financial statements.
The Group's operational structure comprises the two business areas Real Estate and Development. The Real Estate segment is broken down into Portfolio Management, Management, Facility Management and the letting of commercial and residential properties from Mobimo's own portfolio. These tasks are carried out in accordance with the strategy applicable to the portfolio and individual property. The Development segment is responsible for planning and realising residential and commercial properties for Mobimo's own portfolio and for planning and realising real estate developments and condominiums for third parties. The first-time letting of completed apartments and the sale of condominiums also fall under this segment's responsibility. The strategy of carrying out developments for Mobimo's own portfolio and that of carrying out developments for third parties serve as the framework for these tasks. Further detailed information on segment reporting can be found in Note 3 to the consolidated annual financial statements.
An overview of significant shareholders and other shareholder details can be found in the Mobimo on the capital market section on page 6.
One report based on Article 20 SESTA was received during the year under review:
• BlackRock, Inc. reported on 19 April 2016 that the group had exceeded the 3% threshold, with a total holding of 309,524 shares (4.97%).
There are no cross-shareholdings.
Capital
| Capital as at 31 December 2016 |
Total (TCHF) |
Number of registered shares |
Nominal value per share (CHF) |
|---|---|---|---|
| Share capital | 180,327 | 6,218,170 | 29.00 |
| Authorised capital |
max. 34,800 | 1,200,000 | 29.00 |
| Conditional capital |
max. 941 | 32,446 | 29.00 |
Authorised and conditional capital are defined in Articles 3a and 3b of the Articles of Association.
In the case of authorised capital, the Board of Directors is entitled, pursuant to Article 3a of the Articles of Association, to increase the share capital through the issue of up to a maximum of 1,200,000 fully paid-up registered shares within a period of no more than two years. Increases may take place all in one go or in stages. The issue price, type of contributions, conditions governing the exercise of subscription rights, allocation of the excluded subscription rights and timing of the dividend entitlement shall be determined by the Board of Directors. The Board of Directors decides on unexercised subscription rights in the best interests of the company. Once acquired, the new registered shares are subject to the restrictions on transfer set out in Article 6 of the Articles of Association. Shareholders' subscription rights may be excluded by the Board of Directors for the purpose of an acquisition (e.g. in the case of a share placement) or the financing of the acquisition of land by the company or a subsidiary or the takeover or financing of the takeover of companies, parts of companies or participations by the company or a subsidiary. Acquisitions or takeovers are permitted only in keeping with the purpose stipulated in Article 2 of these Articles of Association.
Pursuant to Article 3b of the Articles of Association, conditional capital may be increased through the issue of up to 32,446 fully paid-up registered shares, subject to the exclusion of subscription rights. Use thereof is restricted as follows:
• up to 32,446 fully paid-up registered shares can be issued through the exercise of subscription rights in connection with subscription rights for employees created after 5 May 2010.
The acquisition of registered shares through the exercise of option rights and the subsequent transfer of these registered shares are subject to the restrictions on transfer set out in Article 6 of the Articles of Association.
As at the reporting date, there were no options to create registered shares from conditional capital in accordance with Article 3b (a) of the Articles of Association.
Share capital stood at CHF 180,326,930 as at 31 December 2016 and comprised 6,218,170 fully paid-up registered shares with a nominal value of CHF 29.00, all of which are entitled to dividends and confer the right to vote. There are no preference shares or voting shares. Mobimo Holding AG has not issued any participation certificates.
Mobimo Holding AG has not issued any dividend-right certificates.
Article 6 of the Articles of Association defines the restrictions on transferability. The Board of Directors may deny authorisation to transfer shares for the following reasons:
of Obligations, including in the case of registered shares acquired through the exercise of subscription, option or conversion rights.
In order to ensure compliance with the thresholds indicated, prior to being entered in the share register new shareholders are scrutinised as regards their status as Swiss citizens pursuant to the BewG. If they cannot be verified as Swiss citizens, then provided all other conditions are met they are entered in the category of restricted persons without voting rights, as long as the threshold of one-third of all shareholders is not exceeded and provided there is no other risk, such as tighter practices on the part of the licensing authority, that the entry of the non-Swiss shareholder will result in the company no longer being able to furnish evidence of Swiss control.
As at 31 December 2016, 13.2% of the shares were held by shareholders who are classified in the share register as Non-Swiss according to the above definition (of which 9.3% have voting rights).
The Articles of Association do not contain any provisions pertaining to the registration of nominees. The Board of Directors has laid down the following principles in the regulations governing the administration of the share register and the recognition and registration of shareholders of Mobimo AG: Nominees are registered subject to the following conditions:
As at 31 December 2016, Mobimo had no outstanding convertible bonds or options.
Corporate governance report
| Change | Total (TCHF) |
Number of registered shares |
Nominal value per share (CHF) |
|---|---|---|---|
| Share capital as at 31.12.2007 | 243,232 | 4,343,425 | 56.00 |
| Share capital as at 31.12.2008 | 204,230 | 4,345,323 | 47.00 |
| Share capital as at 31.12.2009 | 192,035 | 5,053,552 | 38.00 |
| Share capital as at 31.12.2010 | 148,804 | 5,131,170 | 29.00 |
| Share capital as at 31.12.2011 | 178,933 | 6,170,098 | 29.00 |
| Share capital as at 31.12.2012 | 180,058 | 6,208,913 | 29.00 |
| Share capital as at 31.12.2013 | 180,220 | 6,214,478 | 29.00 |
| Share capital as at 31.12.2014 | 180,282 | 6,216,606 | 29.00 |
| Share capital as at 31.12.2015 | 180,327 | 6,218,170 | 29.00 |
| Share capital as at 31.12.2016 | 180,327 | 6,218,170 | 29.00 |
| Authorised capital as at 31.12.2007 | 20,160 | 360,000 | 56.00 |
| Authorised capital as at 31.12.2008 | 16,920 | 360,000 | 47.00 |
| Authorised capital as at 31.12.2009 | 18,687 | 491,771 | 38.00 |
| Authorised capital as at 31.12.2010 | 34,800 | 1,200,000 | 29.00 |
| Authorised capital as at 31.12.2011 | 33,978 | 1,171,650 | 29.00 |
| Authorised capital as at 31.12.2012 | 33,093 | 1,141,150 | 29.00 |
| Authorised capital as at 31.12.2013 | 33,093 | 1,141,150 | 29.00 |
| Authorised capital as at 31.12.2014 | 33,093 | 1,141,150 | 29.00 |
| Authorised capital as at 31.12.2015 | 33,093 | 1,141,150 | 29.00 |
| Authorised capital as at 31.12.2016 | 34,800 | 1,200,000 | 29.00 |
| Conditional capital as at 31.12.2007 | 7,848 | 140,150 | 56.00 |
| Conditional capital as at 31.12.2008 | 6,498 | 138,252 | 47.00 |
| Conditional capital as at 31.12.2009 | 5,254 | 138,252 | 38.00 |
| Conditional capital as at 31.12.2010 | 36,558 | 1,260,634 | 29.00 |
| Conditional capital as at 31.12.2011 | 36,252 | 1,250,056 | 29.00 |
| Conditional capital as at 31.12.2012 | 34,304 | 1,182,891 | 29.00 |
| Conditional capital as at 31.12.2013 | 34,142 | 1,177,326 | 29.00 |
| Conditional capital as at 31.12.2014 | 34,081 | 1,175,198 | 29.00 |
| Conditional capital as at 31.12.2015 | 34,035 | 1,173,634 | 29.00 |
| Conditional capital as at 31.12.2016 | 941 | 32,446 | 29.00 |
A distribution from the capital contribution reserves of CHF 10.00 per share was made in 2016. Further information on changes in capital can be found in Note 15 to the consolidated annual financial statements.
Members of the Board of Directors
Chairman Certified Operating Engineer ETH, Entrepreneur Born in: 1949
Georges Theiler has been a member of the Board of Directors since 2000 and Chairman of the Board of Directors of Mobimo Holding AG since September 2013.
Since 1997 Owner of GT-Consulting (specialised in advisory and Board of Directors mandates), Lucerne 1978 – 1997 Chairman of the Executive Board and member of the Board of Directors of construction company and general contractor Theiler and Kalbermatter T+K Bau AG, (building construction, tunnel construction, general contracting, real estate development and real estate management), Lucerne
1976 Certified Operating Engineer, Federal Institute of Technology Zurich
Peter Schaub (CH) Vice Chairman Attorney at law Born in: 1960
Peter Schaub has been a member of the Board of Directors of Mobimo Holding AG since 2008.
| Since 1994 | Partner in tax and law firm |
|---|---|
| Weber Schaub&Partner, Zurich | |
| 1990 – 1993 | Tax commissioner, Canton of Zurich |
| 1987 – 1988 | Legal advisor in law firm |
| Schellenberg Wittmer, Zurich |
| 1990 | Licence to practise law in the canton of Zurich |
|---|---|
| 1987 | Law degree (lic. iur.), University of Zurich |
Peter Barandun (CH) Executive MBA HSG Born in: 1964
Peter Barandun was elected to the Board of Directors of Mobimo Holding AG on 26 March 2015.
| Since 2002 | CEO and Chairman of the Board of Directors |
|---|---|
| Electrolux Schweiz, Zurich | |
| 1996 – 2002 | Head of the divisions Electrolux and Zanussi, |
| Electrolux AG, Zurich | |
| 1990 – 1995 | Head of Sales, Bauknecht AG, Lenzburg |
| 1985 – 1990 | Deputy Head of Sales, Grossenbacher, St. Gallen |
2008 Executive MBA, HSG St. Gallen
Daniel Crausaz (CH) Engineer, MBA Born in: 1957
Daniel Crausaz was a member of the Board of Directors of LO Holding Lausanne-Ouchy SA from 1999 to 2014 and has been a member of the Board of Directors of Mobimo Holding AG since 17 December 2009.
| Since 2003 | Independent consultant on a number of man |
|---|---|
| dates in French-speaking Switzerland | |
| 1997 – 2003 | Managing Director, Banque Cantonale Vaudoise |
| (BCV), Lausanne | |
| 1990 – 1997 | BCV, Lausanne |
| 1985 – 1989 | Engineer, Bonnard &Gardel Ingenieurs Conseils |
| Lausanne SA, Lausanne | |
| 1983 – 1985 | Engineer, Felix Constructions SA, Bussigny |
| 1989 – 1990 | MBA, HEC Lausanne |
|---|---|
| 1976 – 1982 | Engineering degree, EPFL Lausanne |
Attorney at law Swiss-certified tax expert Born in: 1971
Brian Fischer has been a member of the Board of Directors of Mobimo Holding AG since 2008 in an independent capacity.
| Since 2001 | Head of External Asset Managers, Bank Vontobel |
|---|---|
| AG, Zurich | |
| 1997 – 2000 | Tax and legal advisor, Pricewaterhouse-Coopers |
| AG, Zurich |
| 1991 – 1996 | Student, University of Bern |
|---|---|
| ------------- | ----------------------------- |
Bernard Guillelmon (CH/F) Engineer, Masters in Energy, MBA Born in: 1966
Bernard Guillelmon was a member of the Board of Directors of LO Holding Lausanne-Ouchy SA from 2005 to 2009 and has been a member of the Board of Directors of Mobimo Holding AG since 17 December 2009.
| Since 2008 | CEO, BLS AG, Berne |
|---|---|
| 2001 – 2008 | Key positions (Energy, Infrastructure, Business |
| Management) at SBB, Berne | |
| 1998 – 2000 | Independent consultant, Les Giettes |
| 1990 – 1998 | Engineer, department head, BKW AG, Berne |
1985 1990 Engineering degree, EPFL Lausanne
Member of the Executive Board and Committee of the Swiss Association of Public Transport (Verband öffentlicher Verkehr, VoV), serving as Chairman of its Finance Commission
lic. rer. pol., Management Consultant Born in: 1953
Wilhelm Hansen has been a member of the Board of Directors of Mobimo Holding AG since 2008.
| Since 2002 | Independent management consultant for |
|---|---|
| organisational and strategic development and | |
| corporate governance, Basel | |
| 1995 – 2002 | Co-owner, Privatbank Baumann & Cie., Basel |
| 1982 – 1994 | Head of Securities and Group Life Insurance, |
| Baloîse Versicherungen, Basel | |
| 1977 – 1982 | Investment advisor, SBG, Basel |
1977 Political Sciences degree (lic. rer. pol.), HSG St. Gallen/University of Basel
No members stepped down in the 2016 financial year. Paul Rambert stepped down from the Board of Directors in 2015 after reaching an internal age limit.
Alfred Meili is the Honorary Chairman of Mobimo Holding AG. He was the driving force behind the creation of the Mobimo Group and was Chairman of the Board of Directors until 2008.
Laurent Rivier is the Honorary Chairman of LO Holding Lauanne-Ouchy SA, having previously served as Chairman of the Board of Directors from 2000 to 2009.
Dr. Alfred Meili and Laurent Rivier were appointed Honorary Chairmen in recognition of their services to their respective companies. This office confers neither the right to sit on the Board of Directors, nor any other rights and obligations of a member of the Board of Directors, nor any entitlement to directors' compensation or other compensation.
Mobimo Holding AG has concluded special agreements with all members of the Board of Directors and Executive Board in order to avoid conflicts of interest. In these agreements, the members of the Board of Directors and Executive Board undertake, inter alia:
The members of the Board of Directors of Mobimo Holding AG do not occupy any further positions in the management and supervisory bodies of major Swiss and foreign entities or in institutions and foundations under public or private law, and also do not carry out any further long-term management or advisory functions for key Swiss or foreign interest groups.
The members of the Board of Directors may exercise the following additional activities in senior executive or administrative bodies of legal entities that are required to be entered in the Commercial Register or a corresponding foreign register and are neither controlled by the company nor in control of the company:
Corporate governance report
There are no restrictions on mandates for legal entities that are not required to be entered in the Commercial Register or a corresponding foreign register, or on honorary directorships at organisations recognised for tax purposes as not-for-profit.
The Board of Directors of Mobimo Holding AG consists of at least three members and is elected for a period of one year at the General Meeting. The term of office of the members ends at the end of the next Annual General Meeting. The members of the Board of Directors may be immediately re-elected upon expiry of their term of office. The General Meeting elects the Chairman of the Board of Directors. Re-election is permitted. The term of office of the Chairman ends at the end of the next Annual General Meeting. If the office of Chairman becomes vacant, the Board of Directors appoints a Chairman for the remaining term of office.
The Board of Directors currently has seven members.
The General Meeting also elects the independent proxy. Natural persons and legal entities or partnerships are eligible for election. The term of office of the independent proxy ends at the end of the next Annual General Meeting. Re-election is permitted. If Mobimo does not have an independent proxy or the independent proxy is withdrawn due to a lack of independence or for any other reasons, an independent proxy is appointed by the Board of Directors for the current General Meeting or the next. Authorisations and instructions that have already been issued will remain valid for the new independent proxy, unless other authorisations and instructions have been explicitly issued by shareholders.
In 2016, the General Meeting confirmed Georges Theiler as the Chairman of the Board of Directors. The Board of Directors appointed Peter Schaub as Vice Chairman of the Board of Directors.
The Board of Directors is quorate if the majority of its members are present and passes resolutions by a majority of the votes cast.
A total of eight meetings were held in 2016. The ordinary meetings lasted one day. The Board of Directors was present in full at every meeting apart from two. A strategy conference, a project inspection day and a training excursion also took place.
The CEO, CFO and the other members of the Executive Board occasionally take part in the meetings of the Board of Directors, although the Board of Directors always meets without these persons first. The Chairman decides whether employees or other external advisors are to be included in the meeting in order to deal with specific issues.
The Board of Directors has three committees: the Real Estate Committee, the Audit and Risk Committee and the Nomination and Compensation Committee. The purpose, tasks, duties and competences of the committees are set out in a supplement to the organisation regulations.
The Real Estate Committee ensures that the strategic investment and divestment targets it sets each year are implemented successfully. It is also the body with primary responsibility for the sustainability strategy. The competences of the Board of Directors, Real Estate Committee and Executive Board with respect to purchases and sales are laid down in the organisation regulations of Mobimo Holding AG and summarised below. The Real Estate Committee aims to provide the Board of Directors with real estate expertise that is as comprehensive as possible by:
The Real Estate Committee fulfils three functions, namely:
The obligations and competences assigned to the Board of Directors in accordance with the organisation regulations and the law remain with the Board of Directors as the overriding body.
The Audit and Risk Committee fulfils a supervisory function. It may request any measures it deems necessary in order to perform its duties and has direct access to all documentation, employees and the auditors. The main duty of this committee is to support the Board of Directors by means of preparatory work, audits and clarification.
Corporate governance report
The four areas in which the Audit and Risk Committee is active are as follows:
The Board of Directors addresses its risk management responsibilities via the Audit and Risk Committee. Management prepares an annual risk inventory for the Audit and Risk Committee setting out significant risks by risk category. For each risk, the risk owner, impact and measures implemented are analysed and then evaluated on the basis of likelihood, financial impact and damage to reputation and image. Where necessary, further measures are defined for the ongoing management of the assessed risks.
The Nomination and Compensation Committee is a preparatory committee for the Board of Directors and, unless explicitly stipulated otherwise in the Articles of Association or in other regulations, has no decision-making powers. It has the following duties and responsibilities with regard to compensation:
The General Meeting elects the members of the Nomination and Compensation Committee on an individual basis. The Nomination and Compensation Committee comprises at least three members. Only members of the Board of Directors may be elected to the committee. The term of office of members of the Nomination and Compensation Committee ends at the end of the next Annual General Meeting. Re-election is permitted. If the Nomination and Compensation Committee is no longer complete or falls below the minimum number of three members, the Board of Directors appoints the necessary members for the remaining term of office. The Nomination and Compensation Committee currently has three members.
The Board of Directors may assign additional tasks to the Nomination and Compensation Committee with regard to compensation, human resources and related areas. The Board of Directors issues regulations governing the organisation, working methods and reporting of the Nomination and Compensation Committee. The Chairman of the Nomination and Compensation Committee is proposed by the Board of Directors.
The Nomination and Compensation Committee may also request the assistance of independent third parties in performing its tasks and compensate them accordingly.
The principles of top-tier management, including the allocation of authority, are defined in the company's organisation regulations. The Board of Directors is responsible for managing the company and supervising the Executive Board. It represents the company externally and makes decisions on all matters that do not fall under the remit of another body within the company by law or pursuant to the Articles of Association or other regulations. In addition to its non-transferable duties in accordance with Article 716a of the Swiss Code of Obligations, the Board of Directors also has the following duties and competences:
The Executive Board manages the Group companies as BoD and/or Executive Board members in line with the approval authority regulations and local organisation regulations.
The Board of Directors of Mobimo Holding AG makes decisions on all property transactions exceeding CHF 30 million; transactions of between CHF 10 million and 30 million fall under the remit of the Real Estate Committee. Operating decisions pertaining to property transactions up to an investment volume of CHF 10 million are delegated to the Executive Board.
The Chairman of the Board of Directors holds regular coordination and information meetings with the CEO.
The Real Estate Committee met seven times in the past financial year. The Chairman may convene additional meetings at any time. The CEO normally takes part in the meetings. Minutes must be taken at every meeting and subsequently distributed to all members of the Board of Directors. The Board of Directors is also kept up to date with the latest business developments by means of monthly reports.
The Nomination&Compensation Committee met four times in 2016. The Chairman may convene additional meetings at any time. The CEO normally takes part in the meetings. Minutes are taken at every meeting and subsequently distributed to all members of the Board of Directors.
The Audit and Risk Committee met six times in the last financial year. Topics discussed at Audit & Risk Committee meetings include the annual and semi-annual results, the reports of the statutory auditors and external appraisers, important technical accounting, legal, tax and regulatory issues, the financing and management of liabilities, other necessary reports and risk management/ICS. The Chairman of the Audit and Risk Committee may convene additional meetings at any time. If necessary, the Audit and Risk Committee may invite members of the Executive Board, other employees, external advisors or auditors to its meetings, or request that they meet with members of or advisors to the Audit and Risk Committee. The CFO normally takes part in the meetings. Minutes are taken at every meeting and subsequently distributed to all members of the Board of Directors.
The entire Board of Directors receives a monthly report on current business performance and a quarterly report informing them about the following areas: financial situation/budget achievement, risk situation, progress and planned activities of the operating and administrative areas, and personnel situation. The information relates to developments and events since the last management report, together with expected developments and planned activities. The Executive Board is present during the meetings of the Board of Directors and reports on items on the agenda and/or is available for general questions and information.
A formal internal audit is not appropriate due to the size of the company. Internal control and risk management are performed by Finance. The implementation of regulatory and accounting changes is worked out at an early stage in cooperation with the statutory auditors. The statutory auditors and property values are also consulted on a regular basis to help assess larger-scale transactions.
Christoph Caviezel has been CEO of the Mobimo Group since 1 October 2008 and directly manages the Corporate Center and the Purchase and Divestment divisions.
Mobimo AG, Mobimo Management AG, O4Real SA, Immobilien Invest Holding AG, Petit Mont-Riond SA, LO Holding Lausanne-Ouchy SA, LO Immeubles SA, Flonplex SA, Parking du Centre SA, Promisa SA, CC Management SA
| 2001 – 2008 | CEO, Intershop Holding AG, Zurich |
|---|---|
| (member of the Board of Directors since 2003) | |
| 1995 – 2001 | Intershop Holding AG, Zurich |
| (member of the Executive Board since 1999) | |
| 1986 – 1995 | Head of Real Estate, SBB, Lucerne |
| 1980 – 1986 | Attorney at law |
| 1988 | Doctor of law (Dr. iur.), University of Fribourg |
|---|---|
| 1983 | Admitted to the bar in the canton of Grisons |
| 1980 | Law degree (lic. iur.), University of Fribourg |
Manuel Itten joined Mobimo in 2004, working as Head of Controlling until February 2009 and CFO since March 2009.
BSS&M Real Estate AG, FM Service &Dienstleistungs AG
Mobimo AG, Mobimo Management AG, LO Holding Lausanne-Ouchy SA, LO Immeubles SA, O4Real SA, Parking du Centre SA, Flonplex SA, Promisa SA, CC Management SA
| 2004 – 2009 | Head of Controlling, Mobimo, Küsnacht |
|---|---|
| 2000 – 2004 | Head of Controlling, Livit AG, Zurich |
| 1999 – 2000 | Auditor and consultant, Zurich |
| 1988 – 1996 | Various management positions in sales promotion (marketing) |
| 1996 – 1999 | Business Administration degree | |
|---|---|---|
| (Business Economist HWV), FH Winterthur | ||
| 1981 – 1988 | Basic commercial and design studies |
Andreas Hämmerli (CH) Head of Development Certified architect HTL Born in: 1957
Andreas Hämmerli has been Head of Development since October 2008, with responsibility for all aspects of real estate development, construction and sales.
| 2003 – 2008 | Managing Director, D4 Business Center Lucerne, |
|---|---|
| Suva Asset Management (from 2007 member of | |
| the Executive Board, Suva Immobilien) | |
| 2000 – 2002 | Head of Real Estate Consulting Switzerland |
| (development/real estate trading/real estate trusts | |
| and first-time letting), Livit AG, Zurich (as member | |
| of the Executive Board) | |
| 1997 – 1999 | Head of Real Estate Trading, |
| Göhner Merkur AG, Zurich | |
| 1982 – 1997 | Various roles in the architecture sector |
| (development/project management/marketing/ | |
| head of an architecture firm) | |
| 1983 | Certified architect HTL, Burgdorf |
|---|---|
| 1982 | School of engineering, Burgdorf |
Head of Mobimo Suisse romande Certified architect ETH, Executive MBA HSG Born in: 1974
Marc Pointet joined Mobimo in November 2006 and has been Head of Mobimo Suisse romande since March 2013. He has been a member of the Executive Board since April 2015.
| 2006 – 2013 | Head of Project Management Team, Mobimo, Küsnacht |
|---|---|
| 2004 – 2006 | Branch Head, Karl Steiner AG, St. Moritz |
| 2003 – 2004 | Assistant to the CEO, Karl Steiner AG, Zurich |
| 2002 – 2003 | Project team member, Credit Suisse, Zurich |
| 2012 | Executive MBA, HSG St. Gallen |
|---|---|
| 2001 | Architecture degree (Cert. Architect), ETH Zurich |
Thomas Stauber (CH) Head of Real Estate Certified civil engineer ETH/SIA, NDS BWI Born in: 1964
Thomas Stauber joined Mobimo in November 2011 and set up the Development for Third Parties business area. He has headed the Real Estate division since July 2014.
BSS&M Real Estate AG, FM Service &Dienstleistungs AG
| 2004 – 2011 | Head of Acquisitions and Project Development, |
|---|---|
| Allreal Generalunternehmung AG, Zurich | |
| (as member of the Executive Board) | |
| 2002 – 2004 | Managing Director, Bauengineering AG, Zurich |
| 2000 – 2002 | Head of Project Development, tk3 AG, Basel |
| (as member of the Executive Board) | |
| 1995 – 2000 | Head of Technical Planning and Realisation |
| for the Sony Center on Berlin's Potsdamer Platz | |
| 1989 – 1994 | Project Managing Civil Engineer |
| Education | |
| 1992 – 1994 | Postgraduate studies in industrial management |
| and manufacturing, ETH Zurich | |
| 1989 | Cert. Civil Engineer, ETH Zurich |
The members of the Executive Board perform no long-term management or advisory functions for key Swiss or foreign interest groups, nor do they perform any official functions or hold any political offices.
In accordance with Article 12 paragraph 1 item 1 OaEC, the members of the Executive Board may exercise the following additional activities in senior executive or administrative bodies of legal entities that are required to be entered in the Commercial Register or a corresponding foreign register and are neither controlled by the company nor in control of the company:
There are no restrictions on mandates for legal entities that are not required to be entered in the Commercial Register or a corresponding foreign register, or on honorary directorships at organisations recognised for tax purposes as not-for-profit. The prior approval of the Board of Directors is required for such mandates and appointments.
There are no management agreements with third parties. There are service agreements between the Group companies and Mobimo Management AG.
All information on the compensation of Mobimo's Board of Directors and Executive Board is provided in the separate compensation report.
Only those persons entered in the share register are entitled to exercise their voting rights at General Meetings.
The Board of Directors may refuse to approve the transfer of registered shares, insofar as recognising a transferee as a shareholder may, according to the information available to it, hinder the company from providing proof of Swiss control as stipulated under federal law (in particular the Swiss federal law pertaining to the purchase of property by persons resident abroad, BewG). The Board of Directors did not reject any entries in the share register in the year under review, insofar as shareholders provided the information required for entry (see above). In accordance with Article 12 of the Articles of Association, any shareholder may be represented at the General Meeting by their legal representative, by a third party who has been granted written authorisation (and who does not need to be a shareholder), or by the independent proxy. The Board of Directors specifies the process and conditions for issuing authorisations and instructions to the independent proxy. Shareholders may issue general instructions both for proposals relating to agenda items set out in the invitation to the General Meeting and for undisclosed or new proposals. In particular, general instructions to vote in favour of the Board of Directors on proposals that are set out in the invitation or have not yet been disclosed are considered to be valid instructions on the exercise of voting rights. Shareholders have the option to receive their documents for the General Meeting or issue proxies and instructions to the independent proxy representative electronically via the "Sherpany" online shareholder platform.
There is no quorum prescribed by the Articles of Association that goes beyond the statutory provisions on passing resolutions (Articles 703 and 704 of the Swiss Code of Obligations).
The convocation of General Meetings, the form of convocation and the right of shareholders to convene a General Meeting are governed by Articles 9 and 10 of the Articles of Association.
The Annual General Meeting is convened by the Board of Directors or, if necessary, by the external auditor and is held once a year within six months of the end of the financial year. The Board of Directors may convene Extraordinary General Meetings at any time. Extraordinary General Meetings are to be convened by the Board of Directors on the basis of a resolution of the General Meeting, at the request of the auditor or if one or more shareholders who together represent at least one-tenth of the share capital request one in writing and submit the items for the agenda.
The liquidators also have the right to convene a General Meeting. Invitations to the General Meeting are issued at least 20 days prior to the date of the meeting via publication of a single notice in the Swiss Official Gazette of Commerce. Personal invitations are also sent to the shareholders entered in the share register giving the same amount of notice. The invitation must set out all the items on the agenda together with the proposals of the Board of Directors and any shareholders who have requested that a General Meeting be convened. The annual report and auditor's report must be made available for inspection by shareholders at the company's registered office no later than 20 days prior to the Annual General Meeting. The availability of these reports and the right of shareholders to request that copies be sent to them must be indicated in the notice of convocation of the Annual General Meeting.
The statutory provisions set out in Article 699 of the Swiss Code of Obligations apply to the right of shareholders to propose agenda items referred to in Article 10 of the Articles of Association. Shareholders who together represent at least 5% of the company's share capital may request that the Board of Directors convene a General Meeting. Shareholders who together represent shares with a nominal value of at least CHF 1 million may request that an item be placed on the agenda.
Under Article 6 of the Articles of Association, anyone entered in the share register is recognised as a shareholder or usufructuary. Entry is conditional on the provision of evidence that the transfer meets formal requirements and is subject to the approval of the Board of Directors. The Board of Directors has defined this approval authority in regulations governing the administration of the share register and transferred responsibility for recognising and entering shareholders of Mobimo Holding AG to the Audit&Risk Committee. The Audit&Risk Committee has subsequently delegated all decisions that have no impact on stock exchange reporting thresholds or concern members of the Board of Directors or Executive Board to the CFO. No entries shall be made in the share register during a period ranging from a maximum of 20 days before the General Meeting up to the day after the General Meeting. Prior to the Annual General Meeting on 28 March 2017, the share register will be closed for entries from 20 March 2017 onwards. The 2017 General Meeting takes place in Lucerne on 28 March 2017.
The Board of Directors has decided to provide the shareholders with a compensation report each year and hold an annual consultative vote on it irrespective of whether or not there have been significant changes compared with the previous year.
Following a consultative vote, the 2016 General Meeting approved the contributions made to social and political organisations in 2015 and authorised a budget of up to CHF 50,000 for contributions to social and political organisations in 2016.
Anyone who acquires shares directly, indirectly or by mutual agreement with third parties, with the result that their total holding, including the securities they already own, exceeds the threshold of 33% of the voting rights of a listed company, whether exercisable or not, must make an offer to acquire all listed shares of said company (Article 32 of the Swiss Federal Act on Stock Exchanges and Securities Trading (SESTA)).
In view of the Swiss federal law pertaining to the purchase of property by persons resident abroad (BewG), the company has chosen not to make use of the opportunity to include an opting-out or opting-up clause in its Articles of Association. The legal provisions under Article 32 of SESTA governing the obligation to make a purchase offer therefore apply.
There are no change of control clauses.
Duration of mandate and term of office of lead auditor Since Mobimo Holding AG was established in December 1999, the company's statutory and Group auditor has been KPMG AG,
Lucerne. The statutory and Group auditors are appointed annually by the Annual General Meeting.
The following compensation was paid for services relating to the audit of the interim financial statements and 2016 annual financial statements, in addition to fees to the auditor for tax consulting and to the real estate valuers.
| CHF million | 2016 | 2015 |
|---|---|---|
| Audit fees KPMG | 0.4 | 0.4 |
| Tax advice KPMG | 0.1 | 0.2 |
| Property valuation WP | 0.4 | 0.4 |
| Property valuation JLL | 0.1 | 0.1 |
| Additional Fees | 0.6 | 0.7 |
| Total fees | 1.0 | 1.1 |
Mobimo Holding AG provides its shareholders and the capital market with information that is forthright, up to date and as transparent as possible. The Media and Analysts' Conference on the 2016 financial results takes place on 10 February 2017.
Financial reporting takes the form of semi-annual and annual reports. The consolidated annual financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the consolidated interim financial statements in accordance with International Accounting Standard 34 (IAS 34) on interim financial reporting. They comply with both Swiss law and the provisions of the listing rules and additional rules for the listing of real estate companies issued by the SIX Swiss Exchange.
The company is also subject to the obligation in respect of ad hoc publicity pursuant to Article 72 of the listing rules.
Further information about the company can be found on the website www.mobimo.ch.
Dr. Christoph Caviezel CEO Tel. +41 44 397 11 86
This compensation report sets out the mechanisms used to determine the compensation and profit-sharing plans of the Board of Directors and Executive Board, along with the key provisions of the Articles of Association. It also compares the compensation approved by the General Meeting with the actual compensation paid.
The compensation report meets the provisions of the Ordinance Against Excessive Compensation in Listed Companies and is put to a consultative vote at the General Meeting.
Article 22 of the Articles of Association governs the compensation of the Board of Directors, while Articles 28 and 29 govern the compensation of the Executive Board.
In accordance with Article 22 of the Articles of Association, the members of the Board of Directors are entitled to compensation commensurate with their activities and to reimbursement of their expenses incurred in performing their duties in the interest of the company or one of its subsidiaries. The compensation payable to members of the Board of Directors consists of an annual basic amount and other non-performance-related elements (such as supplements for involvement in committees or boards of directors of subsidiaries or the assumption of special functions or mandates), plus social insurance contributions and pension contributions. To place the emphasis on the governance and supervisory function and focus the Board of Director's attention on long-term corporate governance, the members of the Board of Directors do not receive performance-related compensation. Compensation may be paid by the company or one of its subsidiaries, provided it is covered by the approved total compensation.
Part of the compensation may be paid in shares in order to harmonise the interests of the shareholders with those of the Board of Directors. The number of shares allocated and the dates of allocation and transfer of ownership are determined by the Board of Directors at the request of the Nomination and Compensation Committee. The value of the shares is calculated based on the share price applicable on the date of allocation. The Board of Directors sets a vesting period, which is usually five years. From the date of allocation, the shares have both voting and dividend rights.
The maximum total amount of compensation payable to the Board of Directors must be approved annually in advance by the General Meeting for the period until the end of the next Annual General Meeting.
If the total amount of compensation payable to the Board of Directors is not approved, the Board of Directors may either submit a new proposal to the same General Meeting or convene an Extraordinary General Meeting at which it will submit a new proposal for the total amount.
In accordance with the current compensation regulations of Mobimo Holding AG, the compensation payable to the Board of Directors consists of a fixed amount structured on a modular basis depending on the specific activities of each member. It is made up of basic compensation of CHF 70,000 per year plus the following fixed supplements for involvement in a Board Committee:
The following fixed supplements are also paid:
This ensures that the compensation paid to the Board of Directors is in line with the time required for their activities and the level of responsibility involved.
The compensation system must ensure the members of the Executive Board receives compensation in line with their success in implementing the strategy and their contribution to corporate performance. It is based on the three principles described below:
In accordance with Article 28f. of the Articles of Association, the members of the Executive Board receive compensation for their activities for the company and its subsidiaries. This may be paid by the company or one of its subsidiaries, provided it is covered by the approved total compensation.
The total compensation payable to each member of the Executive Board consists of a basic salary (incl. expenses allowance), any other non-performance-related elements (such as supplements for involvement in committees or the boards of directors of subsidiaries or the assumption of special functions or mandates) and a performance-related element, plus social insurance contributions, ancillary pay and pension contributions. Total compensation takes into account the level of responsibility, area of responsibility, expertise and function of the Executive Board member in question, their achievement of objectives and market conditions.
It is set by the entire Board of Directors at the request of the Nomination & Compensation Committee in line with market conditions, with a particular focus on salary levels in the real estate market. This competitive compensation system should enable Mobimo to recruit the senior managers it wants from the relatively small pool of suitable executives and tie them to the company for the long term.
The maximum total amount of performance-related compensation payable to the Executive Board must be approved annually by the General Meeting for the financial year in which the General Meeting in question takes place. No performance-related compensation may be paid for the period in question before approval is given.
If the total amount of compensation payable to the Executive Board is not approved, the Board of Directors may either submit a new proposal to the same General Meeting or convene an Extraordinary General Meeting at which it will submit a new proposal for the total amount of non-performance-related/performancerelated compensation.
Like total compensation, the fixed salary is geared to the actual area of responsibility, professional requirements and expertise of each member of the Executive Board and the amount of work involved, and is paid in cash.
The performance-related compensation payable to members of the Executive Board is based on the quantitative and qualitative objectives and parameters set by the Board of Directors. The Board of Directors issues regulations governing the details of performance-related compensation. The maximum performance-related compensation payable to each individual member of the Executive Board is limited to 100% of their non-performance-related gross salary, however. Total compensation takes into account the level of responsibility, area of responsibility, expertise and function of the Executive Board member in question, their achievement of objectives and market conditions.
Under the new compensation regulations (valid from 1 January 2015), 65% of variable compensation will be based on quantitative criteria and 35% on qualitative criteria that are themselves based on Mobimo's strategy. The Board of Directors has defined the key performance figure for calculating the quantitative target as the return on equity before accumulated revaluation income. However, entitlement to compensation on this basis is conditional on the company achieving a minimum return on equity before revaluation income of 4.5%. Once this minimum return on equity has been achieved, the entitlement of the Executive Board members rises on a straight line basis within a range defined by the Board of Directors.
Variable compensation is capped at 100% of the fixed salary. The regulations then allow the Board of Directors to reduce variable compensation if a dividend/capital repayment at least equivalent to that of the prior year cannot be distributed to shareholders.
At least 50% of the variable compensation is paid in shares in the company. The shares issued are subject to a vesting period, generally five years.
The compensation regulations include a clause stating that variable compensation can be clawed back if it was paid on the basis of annual financial statements that were manipulated.
It goes without saying that the rules of the Ordinance Against Excessive Compensation in Listed Companies (OaEC) must also be complied with, meaning that no variable compensation may be paid unless it has been approved by the shareholders.
Performance-related compensation is always paid in the following year, at the latest prior to the date of the General Meeting.
At the request of the Nomination & Compensation Committee, the Board of Directors determines the dates of allocation and transfer of ownership, and the vesting periods. The value of the shares is calculated based on the share price applicable on the date of allocation. From the date of allocation, the shares have both voting and dividend rights. The Board of Directors may decide to shorten or waive vesting periods, make compensation conditional on the achievement of objectives or not pay compensation at all due to the occurrence of predefined events such as a change of control or termination of an employment relationship.
In particular, members of the Executive Board who are released from their contracts generally still receive a pro rata portion of the contractually agreed compensation until the end of their employment contract unless the employer terminated the employment relationship for good cause attributable to the employee. Performancerelated compensation is generally also paid unless the member in question provided good cause for termination. In each individual case, the Board of Directors decides whether or not the compensation is to be paid and whether vesting periods are to be waived on the basis of the employment contract and the specific circumstances.
The company is entitled to the repayment of all variable compensation paid out on the basis of annual financial statements that do not reflect the company's actual results due to criminal activities or other forms of manipulation. The amount of the repayment entitlement corresponds to the extent of the falsification.
In accordance with Article 29 of the Articles of Association, an additional amount of 30% of the total amount of compensation payable to the Executive Board that was approved in advance for the relevant periods is available for each member of the Executive Board that was appointed after the General Meeting that voted on the total amount of compensation. This amount also covers the period between appointment and the start of the period approved in advance. The additional amount that is actually used does not need to be approved by the General Meeting.
Within the limits of the total amount or additional amount already approved, the company may pay a new member of the Executive Board a joining bonus to offset any losses incurred due to the change of position.
The table below shows the approved compensation elements payable to the Board of Directors and Executive Board and compares the figures with the actual amounts recorded in 2016. In accordance with the Articles of Association, compensation payable to the Board of Directors is approved in advance for the period until the next Annual General Meeting. As a result, the approved compensation amount is reduced to the nine-month figure on a straight-line basis and compared with the payments recognised in the income statement for the period from April to December 2016.
| BoD | Approved | Approved 29.3.2016 – 31.12.2016 |
Paid | Approved | Paid |
|---|---|---|---|---|---|
| TCHF | 29.3.2016 – 28.3.2017 | (9 Monate/pro rata) | 29.3.2016 – 31. 12. 2016 | 27.3.2015 – 29.3.2016 | 27.3.2015 – 29.3.2016 |
| Fixed compensa | |||||
| tion incl. shares | 1,300 | 975 | 944 | 1,300 | 1,258 |
| Compensation for | |||||
| related parties | 100 | 75 | 55 | 200 | 122 |
| Executive Board | Approved | Paid | Approved | Paid |
|---|---|---|---|---|
| TCHF | 1.1.2016 – 31. 12. 2016 | 1.1.2016 – 31. 12. 2016 | 1.1.2015 – 31. 12. 2015 | 1.1.2015 – 31. 12. 2015 |
| Fixed compensation | 2,800 | 2,734 | 2,800 | 2,667 |
| Performance-related compensation | 2,800 | 2,345 | 2,800 | 2,387 |
Compensation payable to the Board of Directors and Executive Board and related parties
In the year under review, the members of the Board of Directors, related parties and the Executive Board received compensation as set out below.
| Name, function (TCHF) | Fees, salary |
Shares | Social security contributions |
2016 Total |
Fees, salary |
Shares | Social security contributions |
2015 Total |
|---|---|---|---|---|---|---|---|---|
| BoD | 910 | 290 | 58 | 1,258 | 959 | 239 | 60 | 1,258 |
| Georges Theiler, Chairman BoD | 340 | 0 | 21 | 361 | 340 | 0 | 21 | 361 |
| Brian Fischer, BoD | 55 | 115 | 10 | 180 | 48 | 115 | 10 | 173 |
| Wilhelm Hansen, BoD | 15 | 125 | 8 | 148 | 47 | 93 | 8 | 148 |
| Peter Schaub, BoD | 170 | 0 | 0 | 170 | 170 | 0 | 0 | 170 |
| Daniel Crausaz, BoD | 120 | 0 | 8 | 128 | 120 | 0 | 8 | 128 |
| Bernard Guillelmon, BoD | 120 | 0 | 8 | 128 | 118 | 0 | 8 | 126 |
| Peter Barandun, VR1 | 90 | 50 | 3 | 143 | 74 | 31 | 3 | 108 |
| Paul Rambert, BoD2 | n/a | n/a | n/a | n/a | 42 | 0 | 2 | 44 |
1 Since the General Meeting of 26 March 2015.
2 Up to the General Meeting of 26 March 2015.
| Name, function (TCHF) | 2016 Total |
2015 Total |
|---|---|---|
| Peter Schaub, BoD | 78 | 117 |
| Paul Rambert, BoD (period until AGM | ||
| 2015) | n/a | 51 |
In the case of Peter Schaub, the payments listed for additional work are payments to the consulting firm weber schaub & partner ag, which is co-owned by Peter Schaub. The expenses invoiced relate to tax consulting services provided by employees of the firm weber schaub & partner. Consulting services provided directly by Peter Schaub are covered by his director's compensation.
In the case of Paul Rambert, the payments listed for the previous year for additional work are payments to Immopoly Sàrl, which is owned by Paul Rambert. The expenses invoiced relate to construction advisory services.
Amounts for the 2016 financial year reflect the expense reported in the consolidated financial statements for the year under review (accrual accounting).
The General Meeting of 29 March 2016 approved fixed compensation of CHF 2.8 million for the Executive Board for the 2016 financial year.
| Name, function (TCHF) | 2016 Total |
2015 Total |
2016 Christoph Caviezel, CEO |
2015 Christoph Caviezel, CEO |
|---|---|---|---|---|
| Fees, salary | 2,198 | 2,157 | 703 | 743 |
| Profit-sharing in cash | 1,092 | 1,112 | 350 | 370 |
| Profit-sharing in shares | 1,093 | 1,113 | 350 | 370 |
| Other contributions1 | 696 | 672 | 230 | 240 |
| Total | 5,079 | 5,054 | 1,633 | 1,723 |
¹ The other payments relate to pension contributions, any service anniversary gifts, private usage of vehicles and employer's social security contributions.
Share-based compensation for the Executive Board was based on the assumption that a ratio of 50% (prior year: 50%) as stipulated in the compensation regulations applies.
No loans or credit facilities were granted to members of the Board of Directors, Executive Board or related parties in the 2016 financial year, and there were no such receivables outstanding as at 31 December 2016.
We have audited the remuneration report dated 31 December 2016 of Mobimo Holding AG for the year ended 31 December 2016. The audit was limited to the information according to articles 14-16 of the Ordinance against Excessive compensation in Stock Exchange Listed Companies contained in the sections "Compensation report for the 2015 financial year in accordance with the Ordinance Against Excessive Compensation in Listed Companies" on pages 49 to 50 of the compensation report.
The Board of Directors is responsible for the preparation and overall fair presentation of the remuneration report in accordance with Swiss law and the Ordinance against Excessive compensation in Stock Exchange Listed Companies (Ordinance). The Board of Directors is also responsible for designing the remuneration system and defining individual remuneration packages.
Our responsibility is to express an opinion on the accompanying remuneration report. We conducted our audit in accordance with Swiss Auditing Standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the remuneration report complies with Swiss law and articles 14 – 16 of the Ordinance.
An audit involves performing procedures to obtain audit evidence on the disclosures made in the remuneration report with regard to compensation, loans and credits in accordance with articles 14 – 16 of the Ordinance. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatements in the remuneration report, whether due to fraud or error. This audit also includes evaluating the reasonableness of the methods applied to value components of remuneration, as well as assessing the overall presentation of the remuneration report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In our opinion, the remuneration report for the year ended 31 December 2016 of Mobimo Holding AG complies with Swiss law and articles 14 – 16 of the Ordinance.
KPMG AG
Kurt Stocker Reto Kaufmann Licensed Audit Expert Auditor in Charge
Lucerne, 7 February 2017
KPMG AG, Pilatusstrasse 41, PO Box, CH-6003 Lucerne
Licensed Audit Expert
KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss legal entity. All rights reserved.
The three courtyards of the Letzihof residential property are decorated with six photographic images from well-known artist Annelies Štrba. They form a playful interface between private and public life, with uncomplicated and modern architecture meeting colourful and playful art.
This interaction takes place day after day in the Letzihof residential property. The simple building provides a sheltered environment for six extraordinary photos shot by Richterswil-based artist Annelies Štrba. Female figures, children's dreams, flowering meadows and frescoes of lights are displayed above the three courtyards and add a poetic element to the functional relationship between the building and its inhabitants – self-sufficient but not without purpose. The residents can move the huge images printed on weatherproof sliding panels to open up a view to the outside world.
"The switch from public to private takes place in the courtyards. The photos are a central part of this – they're calm yet mysteriously stimulating, while giving you the feeling of being part of something and setting you free at the same time. Just as residents get to know each other over time, but do not reveal everything", said Annelies Štrba when describing the art on display within the property. Leading architects EPR Architekten were responsible for the design and development, and the implementation was carried out as part of the Mobimo &Art commitment.
The interface between private and public life: sliding panels. Further information on page 13.
| TCHF | Note | 2016 | 2015 |
|---|---|---|---|
| Income from rental of properties | 4 | 114,654 | 107,841 |
| Income from sale of trading properties and development services | 7 | 151,792 | 86,204 |
| Other income | 3,161 | 1,212 | |
| Revenue | 269,607 | 195,257 | |
| Gains from revaluation of investment properties | 5 | 114,652 | 91,184 |
| Losses on revaluation of investment properties | 5 | –33,948 | –56,442 |
| Net income from revaluation | 80,704 | 34,742 | |
| Profit on disposal of investment properties | 6 | 34,945 | 63,751 |
| Direct expenses for rented properties | 4 | –18,426 | –13,761 |
| Direct expenses from sale of trading properties and development services | 7 | –127,932 | –80,661 |
| Direct operating expenses | –146,358 | –94,422 | |
| Capitalised own account services | 5,416 | 6,214 | |
| Personnel expenses | 17 | –27,302 | –23,418 |
| Operating expenses | 21 | –8,989 | –7,162 |
| Administrative expenses | 22 | –2,990 | –2,395 |
| Earnings before interest, tax, depreciation and amortisation (EBITDA) | 205,034 | 172,567 | |
| Depreciation Amortisation and impairment losses |
25 26 |
–1,714 –3,008 |
–1,599 –541 |
| Earnings before interest and tax (EBIT) | 200,312 | 170,427 | |
| Share of profit of equity accounted investees | 2,715 | 2,293 | |
| Financial income | 2,595 | 559 | |
| Financial expense | –31,075 | –34,203 | |
| Financial result | 11 | –28,479 | –33,644 |
| Earnings before tax (EBT) | 174,548 | 139,076 | |
| Tax expense | 20 | –15,130 | –34,095 |
| Profit | 159,418 | 104,981 | |
| Of which attributable to the shareholders of Mobimo Holding AG | 158,656 | 103,937 | |
| Of which attributable to non-controlling interests | 762 | 1,044 | |
| EBITDA not including revaluation | 124,330 | 137,825 | |
| Operating result (EBIT) not including revaluation | 119,609 | 135,685 | |
| Earnings before tax (EBT) not including revaluation | 93,844 | 104,334 | |
| Earnings per share in CHF | 33 | 25.52 | 16.72 |
| Diluted earnings per share in CHF | 33 | 25.52 | 16.72 |
| TCHF Note |
2016 | 2015 |
|---|---|---|
| Profit | 159,418 | 104,981 |
| Items that may be reclassified subsequently to income statement | –3,314 | –4,750 |
| • Loss on financial instruments for hedge accounting 12 |
–4,409 | –6,035 |
| • Reclassification adjustments for amounts recognised in income statement | 157 | –59 |
| • Tax effects 20 |
939 | 1,343 |
| Items that will not be reclassified to income statement | –691 | –575 |
| • Remeasurement in staff pension schemes 18 |
–817 | –714 |
| • Tax effects 20 |
126 | 139 |
| Total other comprehensive income | –4,005 | –5,325 |
| Of which attributable to the shareholders of Mobimo Holding AG | –4,005 | –5,325 |
| Of which attributable to non-controlling interests | 0 | 0 |
| Total comprehensive income | 155,413 | 99,656 |
| Of which attributable to the shareholders of Mobimo Holding AG | 154,651 | 98,611 |
| Of which attributable to non-controlling interests | 762 | 1,044 |
| TCHF Note |
31.12.2016 | 31.12.2015 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash 14 |
173,869 | 222,897 |
| Trade receivables 23 |
13,479 | 3,839 |
| Income tax receivables | 2,948 | 4,005 |
| Other receivables 24 |
31,430 | 24,391 |
| Trading properties 8 |
304,844 | 226,564 |
| Accrued income and prepaid expenses | 2,431 | 3,523 |
| Total current assets | 529,002 | 485,218 |
| Non-current assets | ||
| Investment properties | ||
| • Commercial properties 5 |
1,373,488 | 1,357,011 |
| • Residential properties 5 |
724,076 | 760,117 |
| • Development properties 5 |
121,104 | 142,470 |
| • Investment properties under construction 5 |
228,130 | 153,170 |
| Property, plant and equipment | ||
| • Owner-occupied properties 25 |
13,982 | 15,269 |
| • Other property, plant and equipment 25 |
3,570 | 3,117 |
| Intangible assets 26 |
6,274 | 6,892 |
| Investments in associates and joint ventures 27 |
27,609 | 25,639 |
| Financial assets 28 |
1,966 | 1,849 |
| Deferred tax assets 20 |
2,488 | 2,126 |
| Total non-current assets | 2,502,686 | 2,467,660 |
| Total assets | 3,031,688 | 2,952,878 |
| TCHF | Note | 31.12.2016 | 31.12.2015 |
|---|---|---|---|
| Equity and liabilities | |||
| Liabilities | |||
| Current liabilities | |||
| Current financial liabilities | 12 | 92,597 | 24,403 |
| Trade payables | 31,384 | 16,963 | |
| Current tax liabilities | 25,397 | 57,798 | |
| Other payables | 29 | 10,133 | 5,425 |
| Advance payments from buyers | 10 | 11,197 | 12,354 |
| Accrued expenses and deferred income | 30 | 32,471 | 21,363 |
| Total current liabilities | 203,181 | 138,306 | |
| Non-current liabilities | |||
| Non-current financial liabilities | 12 | 1,256,804 | 1,342,254 |
| Employee benefit obligation | 18 | 7,163 | 5,840 |
| Derivative financial instruments | 12/16 | 39,834 | 38,998 |
| Deferred tax liabilities | 20 | 158,440 | 162,789 |
| Total non-current liabilities | 1,462,241 | 1,549,880 | |
| Total liabilities | 1,665,421 | 1,688,187 | |
| Equity | 15 | ||
| Share capital | 180,327 | 180,327 | |
| Treasury shares | –446 | –262 | |
| Capital reserves | 207,466 | 269,577 | |
| Retained earnings | 963,589 | 808,975 | |
| Total equity attributable to the shareholders of Mobimo Holding AG | 1,350,936 | 1,258,617 | |
| Attributable to non-controlling interests | 15,331 | 6,074 | |
| Total equity | 1,366,267 | 1,264,691 | |
| Total equity and liabilities | 3,031,688 | 2,952,878 |
| TCHF | Note | 2016 | 2015 |
|---|---|---|---|
| Earnings before tax | 174,548 | 139,076 | |
| Net gains from revaluation of investment properties | 5 | –80,704 | –34,742 |
| Share-based payments | 19 | 1,350 | 1,354 |
| Depreciation on property, plant and equipment and amortisation of lease incentives | 2,590 | 2,572 | |
| Amortisation of intangible assets | 26 | 3,008 | 541 |
| Profit on disposal of investment properties | 6 | –34,945 | –63,751 |
| Loss on disposal/derecognition of property, plant and equipment | –2 | 0 | |
| Share of profit of associates and joint ventures | –2,715 | –2,293 | |
| Financial result | 11 | 28,479 | 33,644 |
| Changes | |||
| • Trade receivables | –7,053 | 111 | |
| • Trading properties | 52,252 | –1,187 | |
| • Other receivables and accrued income and prepaid expenses | –20,498 | 1,163 | |
| • Employee benefit obligation | 506 | –340 | |
| • Trade payables | 3,161 | –3,381 | |
| • Advance payments from buyers | –1,820 | 2,382 | |
| • Other liabilities and accrued expenses and deferred income | 1,656 | 1,068 | |
| Income tax paid | –38,230 | –16,208 | |
| Net cash from operating activities | 81,582 | 60,008 | |
| Investments in financial assets | –117 | 0 | |
| Acquisition of subsidiaries, net of cash acquired | 34 | –10,851 | 0 |
| Acquisition of investment properties | –85,795 | –139,264 | |
| Acquisition of property, plant and equipment | –1,488 | –1,165 | |
| Acquisition of intangible assets | –2,297 | –1,846 | |
| Disposal of financial assets | 0 | 3 | |
| Disposal of property, plant and equipment | 2 | 0 | |
| Disposal of investment properties less selling costs | 157,702 | 236,596 | |
| Dividends received | 1,245 | 1,150 | |
| Interest received | 183 | 67 | |
| Net cash from investing activities | 58,584 | 95,540 | |
| Proceeds from financial liabilities | 0 | 7,560 | |
| Repayment of financial liabilities | –89,894 | –74,124 | |
| Net cash from capital increases | 15 | 0 | 45 |
| Distribution of capital contribution reserves | 15 | –62,153 | –59,061 |
| Acquisition of non-controlling interests | –208 | –841 | |
| Purchase of treasury shares | 15 | –1,511 | –253 |
| Interest paid | –35,427 | –33,358 | |
| Net cash used in financing activities | –189,193 | –160,032 | |
| Decrease in cash | –49,028 | –4,484 | |
| Cash at beginning of reporting period | 222,897 | 227,380 | |
| Cash at end of reporting period | 173,869 | 222,897 |
| Other | Total | Equity attributable to | Non | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Share | Treasury | Capital | Hedging | retained | retained | the shareholders of | controlling | Total | ||
| TCHF | Note | capital | shares | reserves | reserve | earnings | earnings | Mobimo Holding AG | interests | equity |
| At 1 January 2015 | 180,282 | –315 | 328,615 | –16,436 | 725,793 | 709,357 | 1,217,938 | 4,582 | 1,222,520 | |
| Profit 2015 | 103,937 | 103,937 | 103,937 | 1,044 | 104,981 | |||||
| Cash flow hedges: | 12 | |||||||||
| • Change in fair value | –6,035 | –6,035 | –6,035 | –6,035 | ||||||
| • Transfer to income statement | –59 | –59 | –59 | –59 | ||||||
| • Tax effects | 1,343 | 1,343 | 1,343 | 1,343 | ||||||
| Staff pension schemes: | 18 | |||||||||
| • Remeasurement | –714 | –714 | –714 | –714 | ||||||
| • Tax effects | 139 | 139 | 139 | 139 | ||||||
| Other comprehensive income | 0 | 0 | 0 | –4,750 | –575 | –5,325 | –5,325 | 0 | –5,325 | |
| Total comprehensive income | 0 | 0 | 0 | –4,750 | 103,362 | 98,611 | 98,611 | 1,044 | 99,656 | |
| Distribution of capital contribution reserves |
15 | –59,061 | –59,061 | –59,061 | ||||||
| Capital increase | 15 | 45 | 45 | 45 | ||||||
| Share-based payments: | 19 | |||||||||
| • Board of Directors and management |
306 | 23 | 1,024 | 1,024 | 1,354 | 1,354 | ||||
| Purchase of treasury shares | –253 | –253 | –253 | |||||||
| Non-controlling interests arising from acquisition |
1,271 | 1,271 | ||||||||
| Acquisition of non | ||||||||||
| controlling interests | –18 | –18 | –18 | –823 | –841 | |||||
| At 31 December 2015/ | ||||||||||
| 1 January 2016 | 180,327 | –262 | 269,577 | –21,187 | 830,162 | 808,975 | 1,258,617 | 6,074 | 1,264,691 | |
| Profit 2016 | 158,656 | 158,656 | 158,656 | 762 | 159,418 | |||||
| Cash flow hedges: | 12 | |||||||||
| • Change in fair value | –4,409 | –4,409 | –4,409 | –4,409 | ||||||
| • Transfer to income statement | 157 | 157 | 157 | 157 | ||||||
| • Tax effects | 939 | 939 | 939 | 939 | ||||||
| Staff pension schemes: | 18 | |||||||||
| • Remeasurement | –817 | –817 | –817 | –817 | ||||||
| • Tax effects | 126 | 126 | 126 | 126 | ||||||
| Other comprehensive income | 0 | 0 | 0 | –3,314 | –691 | –4,005 | –4,005 | 0 | –4,005 | |
| Total comprehensive income | 0 | 0 | 0 | –3,314 | 157,965 | 154,651 | 154,651 | 762 | 155,413 | |
| Distribution of capital contribution reserves |
15 | –62,153 | –62,153 | –62,153 | ||||||
| Share-based payments: | 19 | |||||||||
| • Board of Directors and management |
1,327 | 42 | –19 | –19 | 1,350 | 1,350 | ||||
| Purchase of treasury shares | –1,511 | –1,511 | –1,511 | |||||||
| Non-controlling interests | ||||||||||
| arising from acquisition | 34 | 8,928 | 8,928 | |||||||
| Acquisition of non controlling interests |
–17 | –17 | –17 | –433 | –450 | |||||
| At 31 December 2016 | 180,327 | –446 | 207,466 | –24,500 | 988,090 | 963,589 | 1,350,936 | 15,331 | 1,366,267 |
Mobimo Holding AG is the parent company of the Mobimo Group, which operates exclusively in Switzerland.
Its business activities consist of the long-term holding and management of commercial, industrial and residential properties, the construction and selling of owner-occupied residential properties and the development of commercial and residential properties for its own portfolio and third-party investors.
Mobimo Holding AG is a public limited company under Swiss law, headquartered in Lucerne and listed on the SIX Swiss Exchange.
The consolidated annual financial statements of Mobimo Holding AG are prepared in accordance with International Financial Reporting Standards (IFRS) and comply with legislation in Switzerland as well as with Article 17 of the Directive on Financial Reporting issued by the SIX Swiss Exchange.
Consolidation takes place on the basis of the individual financial statements from the Group companies. These statements are audited and drawn up in accordance with standardised guidelines. The reporting date is 31 December.
All amounts in the consolidated annual financial statements are shown in thousands of Swiss francs (TCHF), unless stated otherwise. The sums and totals of the individual positions may be larger or smaller than 100% due to rounding.
The consolidated annual financial statements have been prepared in accordance with the cost principle, with the exception of investment properties, investment properties under construction and derivatives, which are recognised at fair value, and investments in associates and joint ventures, which are initially valued at cost and subsequently according to Mobimo's share of equity.
The Notes to the Consolidated Financial Statements are divided into what Mobimo considers relevant sections to facilitate an understanding of the company's income and financial situation. Similarly, for the purpose of facilitating comprehension, the accounting principles applied and material uncertainties regarding estimates are expounded at the beginning of each relevant note.
In preparing the consolidated annual financial statements in accordance with IFRS, management is required to make estimates and assumptions and apply its judgement in its application of the accounting policies. This can influence reported income, expenses, assets, liabilities and contingent assets and liabilities at the time the statements are drawn up. The estimates and assumptions used are based on past experience as well as on other factors which appear plausible at that specific point in time. If actual results in the future differ from such estimates and assumptions, the initial estimates and assumptions will be adjusted in the applicable reporting period accordingly.
The main estimates and assumptions used in the valuation of assets and liabilities are described in the following Notes:
With effect from 1 January 2016, Mobimo uses the following newly applicable or amended standards and interpretations:
The amendments had no effect on the 2016 consolidated annual financial statements
The following new and amended standards and interpretations were approved, but did not or will not take effect until a later date. They have not been adopted in advance in these consolidated annual financial statements. The impact on Mobimo's consolidated annual financial statements has not yet been systematically analysed. Consequently, their anticipated impact as disclosed in the footnotes to the table represents merely an initial estimate by the Executive Board.
| Standard/Interpretation | Entry into force | Planned application by Mobimo (financial year) |
||
|---|---|---|---|---|
| Amendments to IAS 7 | Disclosure Initiative | * | 1.1.2017 | 2017 financial year |
| Amendments to IAS 12 | Recognition of Deferred Tax Assets for Unrealised Losses | * | 1.1.2017 | 2017 financial year |
| Amendments to IFRSs 2014 – 2016 | Annual Improvements to IFRSs 2014 − 2016 Cycle | * | 1.1.2017/ 1.1.2018 |
2017 financial year/ 2018 financial year |
| IFRS 9 | Financial Instruments | * | 1.1.2018 | 2018 financial year |
| IFRS 15 | Revenue from Contracts with Customers and related Clarifications |
** | 1.1.2018 | 2018 financial year |
| Amendments to IFRS 2 | Classification and Measurement of Share-based Payment Transactions |
* | 1.1.2018 | 2018 financial year |
| IFRIC 22 | Foreign Currency Transactions and Advance Considerations |
* | 1.1.2018 | 2018 financial year |
| IFRS 16 | Leases | ** | 1.1.2019 | 2018 financial year |
| Amendments to IAS 40 | Transfer to and from Investment Property | * | 1.1.2018 | 2018 financial year |
* No impact or no significant impact expected on Mobimo's consolidated annual financial statements.
** Mobimo is currently analysing the impact. See explanations below for an initial estimate.
IFRS 15 introduces a new approach to revenue recognition according to which revenue is recognised when control of a product or service passes to the customer (instead of the previous approach based on the time of the transfer of the risks and rewards of ownership). This consequently also redefines the scope for the application of the percentage of completion (POC) method. Instead of the previous practice under IAS 11, the application of the POC method under IFRS 15 no longer depends on whether the contract in question is a specific construction contract negotiated with the customer but instead on whether the control has already been transferred. IFRS 15 makes a distinction between revenue recognition on a specific date and over time, with the latter corresponding to the POC method. While the provisions of IAS 17 (Leases) continue to apply to the rental of investment properties, which are consequently excluded from the new standard, IFRS 15 is to be applied to the sale of residential property and to development services for third-party investors.
Although Mobimo expects the changes to have no material impact on its development services for third-party investors, they affect revenue recognition on the sale of condominiums. The current guidelines under IFRIC 15 specify that revenue is to be recognised on the transfer of material risks and rewards when ownership is transferred and therefore generally at the handover of the keys. According to IFRS 15, revenue is recognised when control of a product or service passes to the customer. Period-based revenue recognition is to be applied in accordance with IFRS 15.35c when performance creates an asset without an alternative use to the entity and the entity has an enforceable right to payment for performance completed. Following notarisation of a purchase contract with the buyer, Mobimo is no longer able to place an alternative apartment at the buyer's disposal without breaching the contract. The notarised purchase contract also fulfils the criterion of an enforceable right to payment for work already performed to date. In future, Mobimo will therefore recognise revenue and estimated share of profit for condominiums under a notarised purchase contract during the progress of construction if it has reasonable knowledge that the contract will very likely be fulfilled by both parties as part of the agreement with the buyer.
The previous IAS 17 (Leases) standard will be replaced by IFRS 16. This changes how leases are recognised. Now, the lessee recognises leases under assets and liabilities in the balance sheet, provided it does not involve short-term contracts of less than 12 months or low-value leased assets.
For the lessor, the requirements under IFRS 16 are similar to those under IAS 17, so leases continue to be recognised as finance or operating leases.
Mobimo is currently conducting a thorough review of the impact.
Internal reporting to key decision-makers is based on the company's two divisions. In the second half of 2016, the Board of Directors decided to restructure the segments. The Investments for Third Parties business area was renamed Development for Third Parties and moved from the Real Estate segment to the Development segment. The Board of Directors believes that measuring performance with the restructured segments better reflects the two main pillars of the business model – generating stable income from investment properties and creating added value from developments. With this restructuring, Mobimo is communicating its consistent strategic focus to the market: Each development project is thoroughly reviewed as to whether it can generate the optimum added-value for the company's own portfolio or for sale to third parties. The grouping of development activities into one segment reflects this process.
The business activities of these two divisions can be described as follows:
The Real Estate segment shows the profit from investment properties held on a long-term basis to generate rental income. This profit comprises the income and associated expenses of investment properties, including commercial and residential properties. The investment portfolio is constantly optimised by the company's Portfolio Management. An individual strategy is determined for each investment property based on the corporate strategy. The portfolio and tenant mix is constantly reviewed. Mobimo aims for significant diversification to generate stable and sustainable returns. The company's management and marketing teams are responsible for tenant support, operation and maintenance of properties and marketing residential, commercial and sales space. Following the integration of FM Service &Dienstleistungs AG in April 2016, the Real Estate segment now provides facility management and related services for the company's own selected investment properties as well as for third-party customers.
The Development segment shows the profit from investment properties under construction for the company's own portfolio, comprising development for institutional and private investors (Development for Third Parties) as well as the construction and sale of condominium apartments. The services provided by the Development for Third Parties business area range from purely development services to turn-key real estate. The business area's activities include developing and realising construction projects on sites and building plots, monitoring construction activity during the construction phase and supporting buyers with condominium projects as well as selling condominiums. Developments for sales (third parties and condominiums) are recognised under Trading Properties as well as under receivables and payables from current projects (see Notes 8 and 9). Developments for the company's own portfolio are listed under Investment properties under construction (see Note 5).
For a comparable presentation of results, segment figures for 2015 have been adjusted to reflect the new structure.
The Board of Directors, which has been identified as the key decision-maker, monitors the results of the individual divisions on the basis of EBIT. These figures are determined using the same accounting principles as in the consolidated annual financial statements prepared in accordance with IFRS. Income tax and interest are not included in the segment results and are recognised under Reconciliation. The costs of central functions such as Finance and IT, Marketing and Communication, Legal Services and Central Services, such as the expenses for the Executive Board, are attributed to the segments on the basis of usage. Expenses in connection with the Board of Directors are not attributed to the segments, but are reported under Reconciliation.
Segment assets include trading properties, investment properties and owner-occupied properties. No other assets are attributed to the segments. Segment assets are measured in the same way as in the consolidated annual financial statements prepared in accordance with IFRS.
There were no transactions between the individual segments. Accordingly, there was no need to eliminate intersegment transactions.
Since Mobimo operates exclusively in Switzerland, revenues and non-current assets do not need to be broken down on a geographical basis.
A further breakdown of income by property type (commercial, residential and trading properties) can be found in Note 4.
| TCHF | Real Estate | Development | Total segments | Reconciliation | Total |
|---|---|---|---|---|---|
| Income from rental of properties | 104,450 | 10,204 | 114,654 | 114,654 | |
| Net income from revaluation | 45,149 | 35,555 | 80,704 | 80,704 | |
| Income from sale of trading properties and | |||||
| development services | 0 | 151,792 | 151,792 | 151,792 | |
| Profit on disposal of investment properties | 34,945 | 0 | 34,945 | 34,945 | |
| Other income | 3,161 | 0 | 3,161 | 3,161 | |
| Total segment income | 187,705 | 197,551 | 385,256 | 385,256 | |
| Segment result EBIT1 | 155,299 | 46,299 | 201,598 | –1,286 | 200,312 |
| Share of profit of equity accounted investees | 2,715 | ||||
| Financial result | –28,479 | ||||
| Earnings before tax (EBT) | 174,548 | ||||
| Tax | –15,130 | ||||
| Profit | 159,418 | ||||
| Trading properties | 304,844 | 304,844 | 304,844 | ||
| Investment properties | 2,097,564 | 121,104 | 2,218,668 | 2,218,668 | |
| Owner occupied properties | 13,982 | 13,982 | 13,982 | ||
| Investment properties under construction | 228,130 | 228,130 | 228,130 | ||
| Total segment assets | 2,111,546 | 654,078 | 2,765,625 | 2,765,625 | |
| Non-attributed assets | 266,064 | 266,064 | |||
| Total assets | 3,031,688 | ||||
| Depreciation, amortisation and impairment losses2 | –1,138 | –3,583 | –4,721 | –4,721 | |
| Investments in non-current assets | 11,380 | 84,329 | 95,709 | 3,815 | 99,524 |
1 The reconciliation EBIT comprises compensation for the Board of Directors.
2 Depreciation, amortisation and impairment losses include impairment losses of CHF –2.2 million on a purchase option in the Development segment, see Note 26.
Consolidated annual financial statements: Notes to the consolidated annual financial statements Segment reporting
| TCHF | Real Estate | Development | Total segments | Reconciliation | Total |
|---|---|---|---|---|---|
| Income from rental of properties | 98,203 | 9,638 | 107,841 | 107,841 | |
| Net income from revaluation | 24,989 | 9,753 | 34,742 | 34,742 | |
| Income from sale of trading properties and development services |
0 | 86,204 | 86,204 | 86,204 | |
| Profit on disposal of investment properties | 63,751 | 0 | 63,751 | 63,751 | |
| Other income | 1,212 | 0 | 1,212 | 1,212 | |
| Total segment income | 188,154 | 105,596 | 293,750 | 293,750 | |
| Segment result EBIT1 | 166,533 | 5,148 | 171,680 | –1,253 | 170,427 |
| Share of profit of equity accounted investees | 2,293 | ||||
| Financial result | –33,644 | ||||
| Earnings before tax (EBT) | 139,076 | ||||
| Tax | –34,095 | ||||
| Profit | 104,981 | ||||
| Trading properties | 226,564 | 226,564 | 226,564 | ||
| Investment properties | 2,117,128 | 142,470 | 2,259,598 | 2,259,598 | |
| Owner occupied properties | 15,269 | 15,269 | 15,269 | ||
| Investment properties under construction | 153,170 | 153,170 | 153,170 | ||
| Total segment assets | 2,132,397 | 522,204 | 2,654,601 | 2,654,601 | |
| Non-attributed assets | 298,277 | 298,277 | |||
| Total assets | 2,952,878 | ||||
| Depreciation and amortisation | –923 | –1,217 | –2,140 | –2,140 | |
| Investments in non-current assets | 257,648 | 52,066 | 309,714 | 3,011 | 312,725 |
The reconciliation EBIT comprises compensation for the Board of Directors.
Income from the rental of properties includes net rental income, i.e. target rental income less rents lost due to vacancy rates. In the case of rental agreements classed as operating leases, rents are recognised on an accrual basis over the term of the lease. If the tenants are provided with significant incentives (e.g. tenantspecific finishings or rent-free periods), the cost of such incentives is recognised over the lease term on a straight-line basis as an adjustment of the rental income.
At present, Mobimo has no rental agreements classed as finance leases.
Direct expenses contains all costs relating to maintenance and administration (including building superintendent remuneration, marketing and property taxes) that cannot be passed on to tenants.
Rental income can be broken down as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| Commercial properties | 79,642 | 80,667 |
| Residential properties | 32,178 | 26,217 |
| Income from rental of | ||
| investment properties | 111,820 | 106,884 |
| Trading properties1 | 2,834 | 957 |
| Total income from rental of properties | 114,654 | 107,841 |
| Commercial properties | –11,801 | –10,716 |
| Losses on receivables | ||
| commercial properties | –203 | –45 |
| Residential properties | –6,049 | –2,840 |
| Losses on receivables | ||
| residential properties | –20 | 18 |
| Investment property expense | –18,073 | –13,582 |
| Rented trading properties1 | –399 | –175 |
| Losses on receivables from | ||
| trading properties1 | 46 | –3 |
| Total expense for rental of properties | –18,426 | –13,761 |
| Net rental income | 96,229 | 94,081 |
1 Rental income or expenses from development properties
The year-on-year increase in income/expenses from rented properties is mainly attributable to rental income included over the course of an entire year for the first time (prior year, one month), properties acquired as a result of the acquisition of Dual Real Estate Investment SA as well as the first-time letting of Zurich, Letzigraben 134 – 136.
Consolidated annual financial statements: Notes to the consolidated annual financial statements Investment portfolio
The future rental income set out below will be generated from non-cancellable rental agreements for investment properties:
| TCHF | Commercial properties |
Residential properties |
2016 Total |
|---|---|---|---|
| Rental income within 1 year |
68,879 | 2,998 | 71,878 |
| Rental income within 2 to 5 years |
189,191 | 7,306 | 196,497 |
| Rental income in over 5 years |
177,559 | 4,498 | 182,057 |
| Total future rental income from non-cancellable rental agreements |
435,630 | 14,802 | 450,431 |
| TCHF | Commercial properties |
Residential properties |
2015 Total |
|---|---|---|---|
| Rental income within 1 year |
72,402 | 2,483 | 74,884 |
| Rental income within 2 to 5 years |
184,121 | 5,734 | 189,855 |
| Rental income in over 5 years |
175,990 | 3,741 | 179,731 |
| Total future rental income from non-cancellable rental agreements |
432,512 | 11,958 | 444,470 |
Rental agreements for commercial properties generally contain an index clause stating that rents may be increased on the basis of the consumer price index. Rent increases for residential properties are generally linked to factors including the mortgage interest rate (reference interest rate). As at 31 December 2016, 70.7% (CHF 78.5 million) of rental income came from rental agreements with index clauses. The vast majority of these agreements contain a 100% adjustment in line with the index.
The five biggest tenants generate the following shares of rental income:
| % | 31.12.2016 | 31.12.2015 |
|---|---|---|
| SV (Schweiz) AG | 6.3 | 6.1 |
| Swisscom Group | 5.3 | 5.1 |
| Coop | 3.1 | 3.1 |
| Senevita AG | 3.0 | n/a |
| MIGROS | 2.9 | 2.8 |
| Total | 20.6 | 17.1 |
1 As at 31 December 2016, Senevita AG now numbered as one of the five biggest tenants, which is why Rockwell Automation AG (as at 31 December 2015: 2.7%, therefore 19.8% in total) is no longer in the list.
The properties are measured at fair value, determined in accordance with the provisions of IFRS 13. The valuations are based on various estimates and assumptions, which are explained in the Valuation details section of this Note. The sensitivity of the fair values of investment properties to a change in input factors and a quantitative analysis of the sensitivity of fair values to a change in the discount rate are also shown.
The investment properties are classified as investment properties under IAS 40. Mobimo differentiates between the following categories of investment property:
These are properties that have been either acquired or built by the company and that are held and managed over a substantial period of time and are not rented out by Mobimo to private individuals as living space. Rental agreements for commercial properties generally contain an index clause stating that rents may be increased on the basis of the consumer price index.
These are properties that have been either acquired or built by the company and that will be held and managed over a substantial period of time and rented out to private individuals as living space. Rent increases for residential properties are generally linked to factors including the mortgage interest rate (reference interest rate).
In the case of mixed use, properties in the case of which more than 50% of rental income is generated from the rental of apartments are reported as residential properties and properties in the case of which more than 50% of rental income results from the rental of commercial premises are recognised as commercial properties.
These include properties with construction shortcomings or substantial vacancy rates, where vacancy is unlikely to be brought below 10% on a long-term basis without significant refurbishment measures. Renovation or conversion plans are developed for these properties. On the basis of these plans, the properties are either reclassified as investment properties under construction or as trading properties or revert to commercial or residential properties. Land held for undetermined future use is likewise classified as development property.
Properties are classified as investment properties under construction as soon as building permission has been granted and construction is to start in the near future. Following completion, the property is reclassified as either residential or commercial property.
Investment properties are initially valued at cost at the time of initial recognition including directly attributable transaction costs. After initial recognition, they are recognised at fair value and the changes in value are recognised in the income statement. To this end, an independent property expert conducts a valuation as at the reporting date. Fair value is determined on the basis of IFRS 13 (see section Valuation details).
Consolidated annual financial statements: Notes to the consolidated annual financial statements Investment portfolio
Investment properties developed as follows:
| Investment | |||||
|---|---|---|---|---|---|
| Commercial | Residential | Development | properties under | 2016 | |
| TCHF | properties | properties | properties | construction | Total |
| Market value at 1 January | 1,357,011 | 760,117 | 142,470 | 153,170 | 2,412,768 |
| Cumulative acquisition costs | |||||
| Balance at 1 January | 1,189,840 | 632,180 | 161,599 | 153,867 | 2,137,486 |
| Increases from investments | 10,274 | 1,107 | 15,732 | 66,698 | 93,811 |
| Capitalisation of borrowing costs | 0 | 0 | 309 | 1,589 | 1,898 |
| Capitalisation/amortisation of lease incentives | –876 | 0 | 0 | 0 | –876 |
| Disposals | 0 | –86,453 | 0 | 0 | –86,453 |
| Transfers to trading properties | 0 | 0 | 0 | –20,306 | –20,306 |
| Transfers between categories | 0 | 26,045 | –34,895 | 8,850 | 0 |
| Balance at 31 December | 1,199,237 | 572,878 | 142,746 | 210,699 | 2,125,561 |
| Cumulative Revaluation | |||||
| Balance at 1 January | 167,171 | 127,937 | –19,129 | –697 | 275,282 |
| Gains on valuations1 | 35,151 | 39,013 | 9,628 | 30,861 | 114,652 |
| Losses on valuations1 | –28,071 | –944 | –2,680 | –2,254 | –33,948 |
| Disposals2 | 0 | –36,304 | 0 | 0 | –36,304 |
| Transfers to trading properties | 0 | 0 | 0 | 1,556 | 1,556 |
| Transfers between categories | 0 | 21,495 | –9,461 | –12,034 | 0 |
| Balance at 31 December | 174,251 | 151,198 | –21,642 | 17,431 | 321,237 |
| Market value at 31 December | 1,373,488 | 724,076 | 121,104 | 228,130 | 2,446,798 |
1 Corresponds to the sum of "Gains from revaluation of investment properties" and "Losses on revaluation of investment properties" in the income
statement and represents the unrealised gains on properties that were in the investment portfolio as at the end of the year under review.
2 Included as a realised gain in "Profit on sale of investment properties" in the income statement.
| Investment | |||||
|---|---|---|---|---|---|
| Commercial | Residential | Development | properties under | 2015 | |
| TCHF | properties | properties | properties | construction | Total |
| Market value at 1 January | 1,364,484 | 526,891 | 214,799 | 142,260 | 2,248,434 |
| Cumulative acquisition costs | |||||
| Balance at 1 January | 1,197,116 | 436,451 | 226,883 | 137,163 | 1,997,612 |
| Increases from purchases | 12,140 | 234,022 | 0 | 0 | 246,162 |
| Increases from investments | 9,081 | 1,656 | 18,039 | 32,019 | 60,795 |
| Capitalisation of borrowing costs | 0 | 0 | 1,110 | 898 | 2,008 |
| Capitalisation/amortisation of lease incentives | –107 | –117 | 0 | 0 | –224 |
| Disposals | –28,845 | –132,601 | 0 | 0 | –161,446 |
| Transfers to trading properties | 0 | 0 | –6,953 | 0 | –6,953 |
| Transfers to property, plant and equipment | 0 | 0 | –467 | 0 | –467 |
| Transfers between categories | 455 | 92,768 | –77,012 | –16,212 | 0 |
| Balance at 31 December | 1,189,840 | 632,180 | 161,599 | 153,867 | 2,137,486 |
| Cumulative revaluation | |||||
| Balance at 1 January | 167,368 | 90,440 | –12,084 | 5,097 | 250,822 |
| Gains on valuations1 | 33,245 | 33,300 | 393 | 24,246 | 91,184 |
| Losses on valuations1 | –36,218 | –5,338 | –7,737 | –7,150 | –56,442 |
| Disposals2 | 3,242 | –12,527 | 0 | 0 | –9,285 |
| Transfers to trading properties | 0 | 0 | –997 | 0 | –997 |
| Transfers between categories | –466 | 22,062 | 1,295 | –22,891 | 0 |
| Balance at 31 December | 167,171 | 127,937 | –19,129 | –697 | 275,282 |
| Market value at 31 December | 1,357,011 | 760,117 | 142,470 | 153,170 | 2,412,768 |
¹ Total corresponds to "Gains from revaluation of investment properties" or "Losses on revaluation of investment properties" in the income
statement and represents the unrealised gains on properties that were in the investment portfolio as at the end of the year under review.
2 Included as a realised gain in "Profit on sale of investment properties" in the income statement.
Consolidated annual financial statements: Notes to the consolidated annual financial statements Investment portfolio
No investment properties were acquired in the year under review.
Further details of the properties sold can be found in Note 6.
The following properties are shown under transfers:
| from | to |
|---|---|
| Kriens, Am Mattenhof 4 Kriens, Am Mattenhof 6 Kriens, Am Mattenhof 8 Kriens, Am Mattenhof 12/14 Kriens, Am Mattenhof 16 |
|
| Investment properties | |
| Development properties | under construction |
| Lausanne, Rue des Côtes-de-Montbenon 1/3/5 |
|
| Investment properties | |
| Development properties | under construction |
| Rheinfelden, Rütteliweg 8; Spitalhalde 40 |
|
| Investment properties under | |
| Residential properties | construction |
| Zurich, Albulastrasse 42 (at 31 December 2015 part of Zurich, Albula-/Hohlstrasse) |
|
| Investment properties | |
| under construction | Trading properties |
| Zurich, Letzigraben 134 – 136 | |
| Investment properties | |
| under construction | Residential properties |
After obtaining the building permit, the Kriens, Mattenhof I property was allocated to the above five "Am Mattenhof" properties and transferred to investment properties under construction as at the reporting date.
The valuation of investment properties is carried out in accordance with the provisions of IFRS 13, under which fair value is defined as the price that would be received when selling an asset or that would be paid when transferring a liability in an orderly transaction between market participants on the measurement date. For nonfinancial assets, management has to assume the "highest and best use" by a market participant, which may differ from its current use. Under IFRS 13, valuation techniques are categorised into three levels in a fair value hierarchy depending on the extent to which fair value is based on observable input factors.
The valuation of investment properties is carried out using the discounted cash flow method (DCF), according to which a property's fair value is determined by calculating the sum of income (rental income less operating and maintenance costs), discounted to the reporting date, that is expected to be generated in the future. In the case of development properties and properties under construction, the construction costs still to be incurred until completion must be taken into account. The discount rate applied to each property is market-derived and risk-adjusted and is dependent on individual opportunities and risks. The fair value estimates as at 31 December 2016, excluding the properties acquired in the prior year through the acquisition of Dual Real Estate Investment SA, were produced by Wüest Partner (WP). The fair value estimates as at 31 December 2016 as regards the properties acquired in the prior year through the acquisition of Dual Real Estate Investment SA were produced by Jones Lang LaSalle AG (JLL). Both valuers are external, independent and certified real estate appraisers. Based on the real estate values as at 31 December 2016, 90% of the value was calculated by Wüest Partner AG (WP) (prior year: 90%) and 10% by Jones Lang LaSalle AG (prior year: 10%).
As input factors with a material impact, such as discount rates, market rents/net sale proceeds and structural vacancy rates, generally have to be derived from information from less active markets, the valuations of all properties were categorised as Level 3.
The following information on rental income, operating and maintenance costs, construction costs and discounting relate to the valuations by Wüest Partner AG, which are very similar to those applied by Jones Lang LaSalle AG. Further details on the valuation methods can be found in the reports of the real estate valuers on pages 122 to 126 for Wüest Partner AG and pages 127 to 130 for Jones Lang La-Salle AG.
Rents are factored into valuations on the basis of contractually agreed conditions. For rental agreements of limited duration, the potential rental income attainable over the long term, from the current perspective, is applied in the valuation on expiry of the contractually agreed rental period. Potential rental income that is in line with the market is determined on the basis of the most recent rental agreements concluded either for the property concerned or for comparable properties in its immediate vicinity, and of the comprehensive real estate market research carried out by Wüest Partner AG. The plausibility of potential rental income from retail space is checked using calculations of market-standard turnover figures. For those existing leases, which include several different uses, the potential rents are calculated separately for each individual use. Genuine tenants' options to extend a lease are taken into account when actual rents are less than the market rents determined. Non-genuine options where provisions are in place for rents to be adjusted in line with market rents prevailing at a specific time are incorporated into the valuations as fixed-term rental agreements, as described above. For rental agreements of unlimited duration, as is common with residential use, adjustments in line with the potential rental income calculated take account of general conditions under rental law and property-specific fluctuations.
In the case of operating costs, it was assumed that separate ancillary cost statements are issued and that the ancillary costs are consequently passed on in full to tenants.
Maintenance costs (servicing and repairs) were calculated using a building analysis tool that determines the residual life of the individual construction components on the basis of an analysis of the building's current condition, models periodic renovations and calculates the associated annuities. The values arrived at are plausibility-tested using the cost benchmarks compiled by Wüest Partner AG.
The construction cost estimates are based on the financial forecasts for the individual projects (where available) and are independently evaluated. Where the construction costs are already secured by means of service contracts with general and full-service contractors, these are used in the measurement.
Discounting is undertaken for each property in accordance with location and property-specific criteria. These reflect both the locationrelevant features of the macro and micro situation and the fundamental parameters of the current management situation. The discount rates applied are measured and verified empirically on the basis of known changes of ownership and transaction data.
Non-observable input factors with a material impact have been identified as market rents, vacancy rates and discount rates. In the case of properties valued on the basis of their being sold as condominiums in accordance with the assumption of the highest and best use, condominium sale prices and not market rents are the most important input factor. The applied input factor values are summarised in the table below. The applied discount rates are shown separately for both valuers.
| Asset class/level/ valuation method |
Fair value in CHF million |
Non observable input factors |
Ranges (weighted average) 2016 |
Ranges (weighted average) 2015 |
|---|---|---|---|---|
| Discount rates WP | 2.80% to 4.90% (3.96%) | 3.50% to 5.40% (4.32%) | ||
| Commercial | Discount rates JLL | 3.70% to 5.80% (3.80%) | 4.00% to 5.80% (4.13%) | |
| investment properties Level 3 |
2016: 1,373 | Achievable long-term market rents |
CHF 87 to CHF 1,112 (CHF 236) | CHF 110 to CHF 1,145 (CHF 245) |
| DCF | 2015: 1,357 | Structural vacancy rates | 2.6% to 11.0% (5.0%) | 0.0% to 11.0% (4.4%) |
| Discount rates WP | 2.60% to 3.80% (3.10%) | 2.90% to 4.30% (3.48%) | ||
| Residential | Discount rates JLL | 3.40% to 3.80% (3.55%) | 3.70% to 4.10% (3.85%) | |
| investment properties Level 3 |
2016: 724 | Achievable long-term market rents |
CHF 160 to CHF 412 (CHF 315) | CHF 166 to CHF 412 (CHF 310) |
| DCF | 2015: 760 | Structural vacancy rates | 0.4% to 8.0% (1.8%) | 0.3% to 5.9% (2.1%) |
| Commercial | Discount rates WP | 4.10% to 5.60% (4.58%) | 4.30% to 5.60% (4.80%) | |
| development properties Level 3 |
2016: 121 | Achievable long-term market rents |
CHF 138 to CHF 268 (CHF 222) | CHF 138 to CHF 757 (CHF 231) |
| DCF | 2015: 142 | Structural vacancy rates | 3.3% to 12.3% (5.7%) | 3.3% to 12.3% (5.6%) |
| Commercial invest | Discount rates WP | 3.20% to 4.40% (3.71%) | 3.30% to 5.00% (3.78%) | |
| ment properties under construction Level 3 |
2016: 228 | Achievable long-term market rents |
CHF 193 to CHF 322 (CHF 265) | CHF 180 to CHF 323 (CHF 283) |
| DCF | 2015: 153 | Structural vacancy rates | 2.2% to 10.0% (3.8%) | 2.0% to 10.0% (3.1%) |
In the case of properties valued on the basis of their being sold as condominiums in accordance with the assumption of the highest and best use (two residential properties), sale proceeds of CHF 6,600 to CHF 7,810 per m² of living space (prior year: CHF 6,600 to CHF 7,800) were used, after taking corresponding investments into account. An average discount rate of 3.75% (prior year: 4.08%) within a range of 2.60% to 5.80% (prior year: 2.90% to 5.80%) was applied to all DCF valuations across all investment categories as at 31 December 2016.
The current use of two (prior year: two) commercial properties as rental properties does not correspond to highest and best use. Their valuation was based on their development into owner-occupied residential property. This results in a gain of CHF 2.6 million (prior year: CHF 4.4 million) based on a fair value for these properties of CHF 54.4 million (prior year: CHF 53.9 million). Mobimo's strategy includes holding residential properties to generate stable, sustainable income from rent. However, Mobimo constantly reviews the current use of these and all other properties in the portfolio and develops strategies for their optimum use.
Consolidated annual financial statements: Notes to the consolidated annual financial statements Investment portfolio
Fair value increases with lower discount rates and structural vacancy rates and with higher market rents and sale prices. The economic environment can be considered as exerting the greatest influence on input factors, with the factors outlined above influenced to varying degrees by market developments. Any intensification of pressure on market rents by negative economic sentiment is usually accompanied by a rise in property vacancy rates. At the same time, low interest rates usually prevail in such market circumstances, which have a positive impact on discount rates. To an extent, therefore, changes to input factors offset each other.
Ongoing optimisation measures made to Mobimo's property portfolio (e.g. conclusion/extension of long-term rental agreements, investments to expand rental space, etc.) provide a cushion against such short-term market shocks, which impact mainly on market rents and vacancy rates. The individual risk-adjusted discount rate of each property is, as already mentioned, in line with the return expectations of the investors or market participants in question and can only be influenced by Mobimo to a limited extent.
On the real estate market at present it can be observed that, owing to the current negative interest rate environment, institutional investors are in some cases buying properties at good locations offering very low yields, their hands forced by the dearth of other investment options. This unforeseeable investor behaviour could result in some properties fetching higher sales prices than their most recent estimates of market value.
A sensitivity analysis checked the impact of an increase or decrease in the discount rates used in the DCF valuation. A general reduction of 0.25 percentage points in the discount rate would reduce the current fair value of the investment properties as at 31 December 2016 by 7.3% or CHF 181 million. A general increase of 0.25 percentage points in the discount rate would reduce the current fair value of the investment properties as at 31 December 2016 by 6.5% or CHF 161 million.
Further sensitivity analysis results can be found in the table below.
| Change in discount rate in basis points | Change in fair value in % at 31.12.2016 |
Change in fair value in CHF million at 31.12.2016 |
Change in fair value in % at 31.12.2015 |
Change in fair value in CHF million at 31.12.2015 |
|---|---|---|---|---|
| –0.40 | 12.0% | 300 | 11.2% | 270 |
| –0.30 | 8.8% | 220 | 8.2% | 198 |
| –0.25 | 7.3% | 181 | 6.7% | 163 |
| –0.20 | 5.7% | 143 | 5.3% | 129 |
| –0.10 | 2.8% | 70 | 2.6% | 63 |
| Average discount rate at 31 December |
0.0% | – | 0.0% | – |
| 0.10 | –2.7% | –67 | –2.5% | –60 |
| 0.20 | –5.2% | –131 | –4.9% | –118 |
| 0.25 | –6.5% | –161 | –6.1% | –146 |
| 0.30 | –7.7% | –192 | –7.2% | –174 |
| 0.40 | –10.1% | –250 | –9.4% | –227 |
As at 31 December 2016, capital commitments for future construction investments in investment properties totalled CHF 179.9 million (prior year: CHF 116.1 million). These commitments relate to the agreements concluded in relation to the construction and development of investment properties under construction in Aarau, Site 2 (Torfeld Süd); Kriens, Sternmatt 6 – Block C (multi-storey parking); Kriens, Am Mattenhof 4 – 16; Lausanne, Rue des Côtes-de-Montbenon 1/3/5; Zurich, Albulastrasse; Hohlstrasse.
Profit on sale of investment properties corresponds to the difference between the net proceeds and the carrying amount recognised as well as attributable sales costs (e.g. notary and land registry fees). Disposals are recognised on the date when control and risks are transferred, which usually corresponds to the date of entry in the land register.
Income from disposals can be broken down as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| Sales proceeds investment properties | 158,492 | 236,750 |
| Carrying amount | –122,757 | –170,731 |
| Sales costs | –790 | –2,268 |
| Profit on disposal of | ||
| investment properties | 34,945 | 63,751 |
In the year under review, the following properties were sold:
| Investment property | Category of investment property |
|---|---|
| St. Gallen, Teufenerstrasse 15 | Residential property |
| Zurich, Katzenbachstrasse 221 – 231 | Residential property |
| Zurich, Manessestrasse 190/192; Staffelstrasse 1/3/5 |
Residential property |
| Category of investment property |
|---|
| Residential property |
| Residential property |
| Residential property |
In accordance with the provisions of IFRIC 15, sales proceeds from the sale of condominiums are recognised at the point when control and the significant risks and rewards of ownership are transferred. This is usually consistent with the date on which construction is completed. In the case of projects of BSS&M Real Estate AG, acquired during the year under review, ownership of some apartments is being transferred before construction has been completed. For these, sales proceeds are first recognised during the progress of construction at the point when ownership is transferred to the buyer, as use and risks associated with the apartments in question have been transferred to the seller. The recognition of the revenue generated in Development for Third Parties is dependent on the contractually agreed services and conditions, whereby revenue from pure service contracts is recognised pursuant to the percentage of completion on the reporting date.
The stage of completion is usually determined on the basis of the progress of construction.
Income from the sale of trading properties includes sales proceeds from the sale of condominiums as well as property and land of the business area Development for Third Parties.
Income from development services includes sales proceeds from development and service contracts under which Mobimo is not or no longer the owner of the land in question.
Profit on the sale of trading properties and development services comprises the following:
| TCHF | 2016 | 2015 |
|---|---|---|
| Income from sale of trading properties | 128,968 | 86,204 |
| Income from development services | 22,824 | 0 |
| Total income from sale of trading properties and development services |
151,792 | 86,204 |
| Construction costs of trading properties sold |
–106,705 | –79,081 |
| Changes in valuation allowances | –7,594 | –1,580 |
| Direct expense development services | –13,633 | 0 |
| Total expenses from sale of trading | ||
| properties and development services | –127,932 | –80,661 |
| Profit on sale of trading properties | ||
| and development services | 23,860 | 5,543 |
Aside from the sale of properties that were recognised as trading properties in previous year and are listed in Note 8, income from the sale of trading properties also comprises the transfer of the plots of land in Bad Zurzach, Weissensteinweg (partial area) and Unterengstringen, Langwisenstrasse to two different investors. These plots were acquired through the acquisition of BSS&M Real Estate AG.
The change in valuation allowance is primarily attributable to the projects St. Moritz, Via Maistra 29 and St. Erhard, Längmatt, together totalling CHF 7.5 million.
A financial forecast is drawn up for each construction project, in which overall costs and sales proceeds are budgeted for. Budgeted overall costs and planned sales prices are determined on the basis of various factors and assumptions. These include past experience, project specifications for the properties, benchmark values for construction costs and other relevant factors such as the planned construction period. Financial forecasts are reviewed on an ongoing basis and adjusted where necessary.
If actual construction costs and sales proceeds differ from the planned figures or if new findings during the construction period make an adjustment of the financial forecasts necessary, an adjustment of carrying amounts, i.e. creation or adjustment of valuation allowances for loss-making projects, may become necessary.
Trading properties are development properties and newbuilds where Mobimo assumes the realisation of residential property and subsequently sells them. Trading properties also include properties that Mobimo has acquired as part of projects for Development for Third Parties and that it intends to sell to third-party investors in the future or other properties held for resale.
Trading properties are valued at the lower of cost or market. With loss-making properties, provisions are created immediately for the final loss.
Plots that are already owned by Mobimo and advance payments for notarised land purchases, as well as the development costs incurred, are classified as land/development projects if the project is expected to be realised but construction work has not yet begun.
Projects that are currently under way and the construction of which is not yet complete are recognised as properties under construction.
Properties that are structurally complete or completed properties that have been acquired for immediate resale are classified as completed real estate. Condominiums for sale are classified as completed real estate at the latest upon their first transfer of ownership, with any costs still outstanding being accrued at this point in time. Development properties are properties that have been acquired with the intention of developing them and selling them on to third parties but are still being let at the reporting date. A property is reclassified if it is demolished or converted.
The carrying amount comprises the following:
| TCHF | 31. 12. 2016 | 31. 12. 2015 |
|---|---|---|
| Land/development projects Properties under construction |
82,560 97,480 |
42,181 88,101 |
| Completed real estate and development properties |
124,804 | 96,281 |
| Total trading properties | 304,844 | 226,564 |
The increase in land/development projects is attributable to the projects taken over as a result of the acquisition of BSS&M Real Estate AG in the year under review. The land at Kriens, Mattenhof II was sold to an investor.
From investment property (prior year, part of the property at Zurich, Albulastrasse/Hohlstrasse), Zurich, Albulastrasse 42 was reclassified during the year under review to property under construction within trading properties, as the plan is to sell it to a third party investor once construction is completed. The BSS&M Real Estate AG property Bad Zurzach, Weissensteinweg is classified as property under construction, although only those apartments whose ownership has not yet been transferred are recognised in the trading properties. For transferred apartments, receivables from construction services may be recognised under receivables (see Note 9). The Lucerne, Büttenenhalde project was completed during the course of the year. This involved the construction of 24 apartments for sale, of which 20 had been transferred as at 31December 2016. The Langenthal, Kühlhausstrasse office building was also completed and sold to a new owner during the year under review.
From projects completed in previous years, four apartments were transferred from the Meilen, Feldgüetliweg 143/145 project and three apartments from the Zurich, Turbinenstrasse (Mobimo Tower) project, as well as the remaining five apartments from the Regensdorf, Im Pfand 2 project and the remaining four apartments from the Zurich, Badenerstrasse 595. From the Salenstein, Hauptstrasse 8 project of BSS&M Real Estate AG, six apartments have been transferred since the acquisition. Further, the property Aarau, Buchserstrasse 8 was sold during the year under review, while the fully let commercial property Cham, Brunnmatt 4 – 6, which is intended for sale, was acquired as part of the acquisition of BSS&M Real Estate AG.
On trading properties, valuation allowances totalled CHF 10.2 million (prior year: CHF 2.6 million). The carrying amount for these properties/condominiums measured at their estimated net realisable value is CHF 19.5 million (prior year: CHF 8.4 million).
Consolidated annual financial statements: Notes to the consolidated annual financial statements Trading properties and development services
Receivables from projects for which income is recognised in accordance with their stage of completion are reported according to the net principle, i.e. advance payments received are offset against receivables due in accordance with the stage of completion (order balance).
Positive net items are recognised on the balance sheet in trade receivables, and negative net items in trade payables.
Advance payments made by buyers in relation to projects for which income is not recognised in accordance with the stage of completion are reported at nominal value and reclassified when ownership is transferred as income from the sale of trading properties and development services.
Receivables and payables from current projects comprise the following:
| TCHF | 2016 | 2015 |
|---|---|---|
| Project costs incurred | 19,082 | 0 |
| Realised gains and losses projects | 737 | 0 |
| Current projects gross | 19,819 | 0 |
| Less advance payments projects received | –19,554 | 0 |
| Current projects net | 265 | 0 |
| Receivables current projects | 6,081 | 0 |
| Payables current projects | 5,816 | 0 |
Advance payments from buyers of CHF 11.2 million (prior year: CHF 12.4 million) include CHF 11.2 million (prior year: CHF 9.8 million) of reservation payments from purchasers of condominiums and CHF 0 (prior year: CHF 2.6 million) of advance payments from thirdparty investors in Development for Third Parties prior to transfer of ownership.
Interest on loans taken out to finance construction projects (trading properties and investment properties under construction) is capitalised over the construction period.
All other borrowing interest is recognised as an expense in the income statement using the effective interest method.
Current interest payments in relation to concluded interest rate swaps are recognised in interest expense. Changes in the fair value of interest rate swaps that are not classified as cash flow hedges are reported in income/expenses from financial instruments (derivatives). Any ineffectiveness relating to interest rate swaps that are classified as cash flow hedges is reported as an expense from financial instruments (derivatives).
The financial result in the year under review can be broken down as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| Financial income | ||
| Interest on bank and other deposits | 191 | 77 |
| Dividend income from financial assets | 130 | 107 |
| Income from financial instruments (derivatives) |
2,274 | 374 |
| Gains from sale of financial assets | 0 | 1 |
| Total financial income | 2,595 | 559 |
| Financial expense | ||
| Interest expense | –31,579 | –29,904 |
| Cost of financial instruments (derivatives) | 1,103 | –952 |
| Other financial charges | –599 | –3,347 |
| Total financial expense | –31,075 | –34,203 |
| Total financial result | –28,479 | –33,644 |
Expenses from financial instruments (derivatives) include ineffectiveness totalling CHF 1.3 million (prior year: CHF –0.9 million).
In the 2016 financial year, a total of CHF 3.2 million (prior year: CHF 3.4 million) in borrowing costs was capitalised under trading properties, development properties and investment properties under construction. The average rate of interest for the capitalised interest was 2.38% (prior year: 2.47%).
Financial liabilities consist of outstanding bonds and mortgage-secured bank loans. A long-term financial liability is one on which the agreed residual maturity is longer than 12 months. All other agreements are classified as short term, including amortisation payments that are due within 12 months of the reporting date.
At initial recognition, financial liabilities are recognised at fair value less transaction costs. Subsequently, financial liabilities are measured at amortised cost, with the difference between the amount to be repaid and the carrying amount being amortised over the term using the effective interest method.
Mobimo uses derivative financial instruments (e. g. interest rate swaps and forward rate agreements) to hedge the interest rate risks of financial liabilities.
Derivative financial instruments are measured at fair value at initial recognition and thereafter. Gains and losses from adjustments to fair values are treated as follows:
The hedging of interest rate risk on financial liabilities is classified as a cash flow hedge under certain circumstances. The effective portion of the change in the fair values of derivatives is recognised in other comprehensive income (equity) and not recognised in profit or loss. The ineffective portion is recognised directly in the income statement. As soon as the hedged transactions (interest payments) take place, accumulated unrealised gains and losses are transferred to the income statement and recognised in the financial result.
Changes in fair values of all other derivatives are recognised in profit or loss in the financial result.
Consolidated annual financial statements: Notes to the consolidated annual financial statements Financing and risk management
The financial liabilities can be broken down as follows:
| TCHF | 31.12.2016 | 31.12.2015 |
|---|---|---|
| Fixed-rate mortgage amortisation due within 12 months | 5,287 | 10,313 |
| Mortgages due for extension or repayment within 12 months | 87,310 | 14,090 |
| Total current financial liabilities | 92,597 | 24,403 |
| Mortgages | 743,844 | 829,801 |
| Bonds | 512,960 | 512,453 |
| Total non-current financial liabilities | 1,256,804 | 1,342,254 |
| Total financial liabilities | 1,349,401 | 1,366,657 |
| Interest rate swaps applying hedge accounting | 30,773 | 29,000 |
| Interest rate swaps through profit and loss | 9,061 | 9,997 |
| Total non-current derivative financial instruments | 39,834 | 38,998 |
The following bonds are included under non-current financial liabilities:
| TCHF | 1.5% bond (2013 – 2018) |
1.625% bond (2014 – 2021) |
1.875% bond (2014 – 2024) |
Total |
|---|---|---|---|---|
| Net proceeds from issuance | 164,158 | 197,967 | 149,452 | 511,577 |
| Cumulative amortisations of issuance costs | 357 | 452 | 67 | 876 |
| Carrying amount 01.01.2016 | 164,515 | 198,419 | 149,519 | 512,453 |
| Amortisations of issuance costs | 169 | 286 | 53 | 508 |
| Carrying amount 31. 12. 2016 | 164,684 | 198,705 | 149,572 | 512,960 |
| Features | 1.5% bond (2013 - 2018) | 1.625% bond (2014 - 2021) | 1.875% bond (2014 - 2024) |
|---|---|---|---|
| Volume: | CHF 165 million | CHF 200 million | CHF 150 million |
| Term: | 5 years (29 October 2013 – 29 October 2018) |
7 years (19 May 2014 – 19 May 2021) |
10 years (16 September 2014 – 16 September 2024) |
| Interest rate: | 1.5% p.a., | 1.625% p.a., | 1.875% p.a., |
| payable annually on 29 October, with the first payment on 29 October 2014 |
payable annually on 19 May, with the first payment on 19 May 2015 |
payable annually on 16 September, with the first payment on 16 September 2015 |
|
| Effective rate of interest: | 1.6070% | 1.7921% | 1.9264% |
| Listing: | SIX Swiss Exchange | SIX Swiss Exchange | SIX Swiss Exchange |
| Swiss security no.: | 22492349 | 24298406 | 25237980 |
Mobimo has also concluded separate interest rate hedges (interest rate swaps) totalling CHF 195.0 million (prior year: CHF 195.2 million). These are used to hedge loans in the form of fixed advances (terms of three to six months) against rising interest rates. Of these, CHF 118.7 million (prior year: CHF 128.9 million) are classified as cash flow hedges. The fair value of these instruments with a negative replacement value was CHF 30.8 million (prior year: CHF 29.0 million). In financial year 2016, the hedge using an interest rate swap of CHF 10 million was no longer effective and is therefore now being managed as an interest rate swap without the application of hedge accounting. Accumulated changes in valuation recognised in other comprehensive income until the point of ineffectiveness are rebooked to the income statement for the residual term of the interest rate swap. In the year under review, these amounted to CHF 0.2 million. The change in value of the interest rate swap that continues to be classified as a cash flow hedge is divided into an effective and an ineffective portion. The effective portion of the fair value adjustments of CHF 3.1 million (prior year: CHF 6.0 million) was recognised under other comprehensive income in equity. Ineffectiveness totalling CHF –1.3 million (prior year: CHF 0.9 million) was credited to financial expense in the income statement. There are also a further CHF 76.3 million (prior year: CHF 66.3 million) of interest rate hedges not classified as cash flow hedges. The fair value of interest rate swaps with a negative replacement value not held for hedge accounting purposes is CHF 9.1 million (prior year: CHF 10.0 million). Consequently, fair valuation adjustments of CHF 2.3 million (net) as well as the above ineffectiveness of CHF 1.3 million were recognised in the income statement. As at 31December 2016, the fair value of all derivatives totalled CHF 39.8 million (prior year: CHF 39.0 million).
Financial liabilities as at the reporting date comprised the following maturities, taking into account interest rate hedging, i.e. the maturities of designated swaps are taken into account instead of the maturities of fixed advances:
| TCHF | 31.12.2016 | 31.12.2015 |
|---|---|---|
| Due within 1st year | 92,597 | 24,403 |
| Due within 2nd year | 191,788 | 75,064 |
| Due within 3rd year | 65,453 | 191,600 |
| Due within 4th year | 115,042 | 65,317 |
| Due within 5th year | 255,252 | 115,278 |
| Due within 6th year | 147,960 | 261,869 |
| Due within 7th year | 36,047 | 150,799 |
| Due within 8th year | 151,074 | 37,117 |
| Due within 9th year | 1,502 | 151,021 |
| Due within 10th year | 22,440 | 1,502 |
| Due within 11th year and longer | 270,248 | 292,687 |
| Total financial liabilities | 1,349,401 | 1,366,657 |
The average residual term of overall financial liabilities is 6.9 years (prior year: 7.7 years).
Interest rate periods are as follows (composition until next interest rate adjustment/taking into account interest rate hedging):
| TCHF | 31.12.2016 | 31.12.2015 |
|---|---|---|
| Up to 1 year | 92,597 | 24,403 |
| Up to 2 years | 191,788 | 75,064 |
| Up to 3 years | 65,453 | 191,600 |
| Up to 4 years | 115,042 | 65,317 |
| Up to 5 years | 255,252 | 115,278 |
| Over 5 years | 629,269 | 894,995 |
| Total financial liabilities | 1,349,401 | 1,366,657 |
Certain mortgage interest rates were formerly partially hedged in advance by means of forward rate agreements. Such forward rate agreements generally qualify as derivatives embedded in credit agreements and have to be measured at fair value in accordance with IAS 39. Some of these forward rate agreements were classified as cash flow hedges pursuant to IAS 39, and fair value adjustments relating to the effective portion of the hedge were recognised directly in equity via a separate item (hedging reserve). When the hedged interest cash flows occur, accumulated unrealised gains or losses are transferred to the income statement. This applies until 2022. TCHF 40 was reposted to the income statement in the year under review (prior year: TCHF 59). As at 31 December 2016 and 2015, no new refinancing agreements of this kind were used for cash flow hedges, or the term of the hedged financial liabilities had already started.
As at 31December 2016, taking current interest rate swaps into account, CHF 1, 336.1 million were subject to fixed interest rates, with CHF 13.3 million bearing variable rates. In addition to variable-rate mortgages and rollover mortgages, loans with a total maturity of less than one year (fixed advances) count as variable.
The average interest rate for the period, taking interest rate swaps into account, was 2.38% (prior year: 2.46%).
Consolidated annual financial statements: Notes to the consolidated annual financial statements Financing and risk management
The carrying amount of pledged assets is as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| Trade receivables | 231 | 170 |
| Other receivables | 22,673 | 0 |
| Trading properties | 22,404 | 0 |
| Investment properties and investment properties under construction |
2,224,990 | 2,076,910 |
| Owner-occupied properties | 13,982 | 15,269 |
| Carrying amount of pledged assets | 2,284,279 | 2,092,350 |
This is the carrying amount of those assets that are pledged either in full or in part for the purpose of securing bank mortgage loans and free limits. These assets were encumbered with mortgages totalling CHF 836.4 million (prior year: CHF 854.2 million) (see Note 12).
Cash comprises cash in hand and call deposits with banks as well as fixed-term deposits with banks and short-term money market investments with a term of up to 90 days from the time of acquisition. These are recognised at nominal value.
Cash comprises cash holdings and current account deposits of CHF 63.9 million (prior year: CHF 172.9 million) and money market account deposits of CHF 110 million (prior year: CHF 50 million) held at Swiss banks. The maximum notice period for withdrawals from money market accounts is 35 days. The average rate of interest applicable to cash was 0.00% (prior year: 0.00%).
Share capital is reported as equity since there is no repayment obligation and no dividend guarantee. Transaction costs incurred during a capital increase that can be attributable directly to the issuing of new shares are deducted from the amount of the capital increase less associated income tax.
Dividends are reported as liabilities as soon as they are approved by the General Meeting and are thus due.
The costs for the acquisition (purchase price and directly attributable transaction costs) of treasury shares are offset against equity. Shares that have been bought back are classified as treasury shares and deducted from equity as a negative item.
Changes in the equity holding can be summarised as follows:
| No. of shares | Shares issued |
Treasury shares |
Shares out standing |
|---|---|---|---|
| At 1.1.2015 | 6,216,606 | –1,623 | 6,214,983 |
| Issue of shares from conditional capital for options exercised |
1,564 | 1,564 | |
| Share-based payments to Board of Directors and management |
1,576 | 1,576 | |
| Acquisition of treasury shares |
–1,200 | –1,200 | |
| At 31.12.2015/1.1.2016 | 6,218,170 | –1,247 | 6,216,923 |
| Share-based payments to Board of Directors and management |
6,203 | 6,203 | |
| Acquisition of treasury shares |
–7,000 | –7,000 | |
| At 31. 12. 2016 | 6,218,170 | –2,044 | 6,216,126 |
| Capital as at 31 December 2016 |
TCHF | Number of registered shares |
Nominal value per share (CHF) |
|---|---|---|---|
| Share capital | 180,327 | 6,218,170 | 29.00 |
| Authorised capital | max. | ||
| (until 29 March 2018) | 34,800 | 1,200,000 | 29.00 |
| Conditional capital | max. 941 | 32,446 | 29.00 |
| Capital as at 31 December 2016 |
TCHF | Number of registered shares |
Nominal value per share (CHF) |
|---|---|---|---|
| Share capital | 180,327 | 6,218,170 | 29.00 |
| Authorised capital (until 26 March 2017) |
max. 33,093 |
1,141,150 | 29.00 |
| Conditional capital | max. 34,035 |
1,173,634 | 29.00 |
No changes were made to the capital structure in the year under review. 1,564 option rights were exercised in 2015, leading to a CHF 0.05 million increase in share capital.
In addition, authorised share capital is available, allowing the Board of Directors to increase the share capital of the company by a maximum of CHF 34.8 million within two years (up to March 2018) at most via the issue of up to 1,200,000 registered shares, to be fully paid up, with a nominal value of CHF 29 per share.
There is also conditional share capital of a maximum of CHF 0.9 million for the issue of up to 32,446 fully paid up registered shares with a nominal value of CHF 29.00 for the subscription rights created after 5 May 2010 under an employee share option programme. Shareholders' subscription rights are excluded.
The Annual General Meeting of 29 March 2016 approved a distribution from the capital contribution reserves of CHF 10 per share for the 2015 financial year, which was paid on 5 April 2016. The nominal value of Mobimo shares remains at CHF 29.00.
The Board of Directors will propose to the upcoming General Meeting of 28March 2017 a distribution of CHF 62.2 million in the form of a distribution of paid-in capital of CHF 10.00 per share.
Over the past five years, the dividend yield (capital contribution or nominal value repayment), taking account of the planned distribution for the financial year, has averaged about 4.5% (prior year: 4.6%)
Consolidated annual financial statements: Notes to the consolidated annual financial statements Financing and risk management
Through its activities, Mobimo is exposed to various financial risks. These can be summarised as credit risks, liquidity risks and market risks. Of the various market risks, interest rate risk is particularly significant.
Risk management is assured by Internal Controlling. Internal Controlling operates in accordance with the principles of Mobimo's risk management concept, which are monitored by the Audit and Risk Committee.
The risk management principles and the processes applied are subject to regular review in order to take account of changes in market conditions and in the activities of the Group. The aim is to use existing training and management guidelines and processes to maintain a disciplined and constructive control environment in which all employees can fulfil their function and exercise their duties. Risk management is part of the processes that make up the integrated management system.
The following paragraphs provide an overview of the exposure to each of the individual financial risks together with information on the objectives, policies and processes for measuring, monitoring and hedging risks as well as on capital management within the Group. Further information on financial risks can be found elsewhere in the Notes.
Credit risk is the risk that Mobimo could suffer financial losses if clients or counterparties to a financial instrument fail to fulfil their contractual obligations. Credit risk arises primarily in connection with trade receivables and cash.
In order to minimise credit risk in connection with cash, short-term bank deposits are held with first-rate institutions. Trade receivables are receivables from property sales, rental agreements and current projects. Property sales are exposed to only limited credit risk, since these sales are based on a publicly certified purchase agreementthat is regularly secured via an irrevocable promise to pay. With rental agreements, credit risk is reduced via creditworthiness checks and by monitoring the age structure of amounts outstanding. Deposits or bank guarantees of three to six times the monthly rent are also demanded. Trade receivables from current projects are covered by a promise to pay or are due from institutional investors with good credit quality. Furthermore, contracts concluded with institutional investors include a payment plan drawn up in advance. For this reason, trade receivables from current projects have a low credit risk.
The maximum credit risk exposure corresponds to the carrying amounts of the individual financial assets. There are no guarantees or similar obligations that could lead to an increase in risk in excess of the carrying amounts.
As at the reporting date, the maximum credit risk exposure was as follows:
| TCHF | Carrying amounts 2016 |
Carrying amounts 2015 |
|---|---|---|
| Cash (bank deposits) | 173,869 | 222,897 |
| Trade receivables | 13,479 | 3,839 |
| Other receivables1 | 24,364 | 1,068 |
| Accrued income and prepaid expenses2 | 2,024 | 3,116 |
| Financial assets (loans) | 117 | 0 |
| Total | 213,854 | 230,919 |
1 Not including tax receivables and receivables in connection with social security and advance payments.
2 Not including costs paid in advance.
Liquidity risk is the risk that Mobimo will not be able to meet its financial obligations when they become due. Investment properties are refinanced where necessary via medium to long-term loans, and residential development properties via short-term loans. If required, Mobimo can also obtain financing by issuing bonds. Liquidity is managed via a liquidity planning tool, in combination with a mortgage database.
The table below sets out the contractual maturities (including interest) of the financial liabilities held by Mobimo. Future variable rates of interest have been estimated using the yield curve as at the reporting date.
| Carrying | |||||||
|---|---|---|---|---|---|---|---|
| TCHF | amount 2016 |
Contractual cash flows |
1 month or less |
1 − 3 months |
3 − 12 months |
1 − 5 years |
Over 5 years |
| Non-derivative financial liabilities | |||||||
| Trade payables1 | 16,184 | 16,184 | 16,184 | ||||
| Other payables2 | 9,181 | 9,181 | 9,181 | ||||
| Accrued expenses and deferred income3 | 28,881 | 28,881 | 28,881 | ||||
| Financial liabilities | 1,349,401 | 1,574,669 | 5,835 | 17,042 | 97,870 | 721,703 | 732,218 |
| Derivative financial liabilities | |||||||
| Interest rate swaps | 39,834 | 40,152 | 188 | 1,267 | 4,498 | 17,920 | 16,278 |
| Total | 1,443,481 | 1,669,066 | 6,022 | 72,555 | 102,369 | 739,624 | 748,496 |
| Carrying | |||||||
| TCHF | amount 2015 |
Contractual cash flows |
1 month or less |
1 − 3 months |
3 − 12 months |
1 − 5 years |
Over 5 years |
| Non-derivative financial liabilities | |||||||
| Trade payables1 | 6,724 | 6,724 | 6,724 | ||||
| Other payables2 | 4,887 | 4,887 | 4,887 | ||||
| Accrued expenses and deferred income3 | 17,772 | 17,772 | 17,772 | ||||
| Financial liabilities | 1,366,657 | 1,616,612 | 178 | 13,211 | 43,056 | 552,985 | 1,007,182 |
| Derivative financial liabilities | |||||||
| Interest rate swaps | 38,998 | 39,811 | 181 | 1,283 | 4,527 | 19,671 | 14,148 |
| Total | 1,435,038 | 1,685,805 | 359 | 43,877 | 47,583 | 572,656 | 1,021,330 |
1 Not including rents and ancillary costs paid in advance.
2 Not including tax payables and payables in relation to social security.
3 Not including deferred income taxes and unused annual leave.
Market risk is the risk that changes in market prices such as exchange rates, interest rates and the fair value of financial instruments could have an impact on the profit from and market value of financial instruments held by Mobimo.
Market risks are managed in order to monitor and control such risks and to ensure that they do not exceed certain levels.
The Group is only active in Switzerland, and almost all business is transacted in Swiss francs.
Interest rate risk can be broken down into the interest-related risk of a change in market value, i.e. the risk that the market value of a financial instrument will change as a result of fluctuations in market interest rates, and an interest-related cash flow risk, i.e. the risk that future interest payments will change as a result of fluctuations in market interest rates.
A description of the interest-bearing financial instruments and sensitivity analyses of the two components of interest rate risk are provided below.
The Group's cash is used to reduce variable-rate mortgages or is invested on a short-term basis.
The interest on financial liabilities relates to bonds, loans for the financing of investment properties and trading properties. With investment properties, interest rate risk is generally addressed via the conclusion of long-term fixed-rate mortgage agreements. Where necessary, derivative financial instruments are also used to hedge interest rates.
As at the reporting date, there was no construction financing for investment properties (also none in the prior year).
Based on its market assessment, Mobimo has set itself the goal of maintaining the average residual term to maturity of financial liabilities over the long term via long-term bonds, mortgages with long terms or derivative financial instruments.
Further information on the interest rate profile of financial liabilities, bonds, forward rate agreements and interest rate swaps can be found in Note 12.
Mobimo has no fixed-rate financial assets or liabilities that are classified at fair value in the income statement. Fixed-rate financial instruments are measured at amortised cost. With these positions, therefore, a change in market interest rates would have no impact on the profit for the year.
Mobimo may hold forward rate agreements and interest rate swaps measured at fair value. Changes in the fair value of interest rate swaps not held for hedge accounting purposes are recognised in the financial result and therefore have no direct impact on the profit for the year. Changes in the fair value of financial instruments used for hedge accounting purposes are recognised directly under other comprehensive income.
An increase of 100 basis points in the interest rate would have increased the Group result by CHF 2.7 million (prior year: CHF 3.0 million) as a result of changes in fair value for swaps not held for hedge accounting purposes. Changes in the fair value of swaps held for hedge accounting purposes would have increased other comprehensive income (equity) by CHF 20.8 million (prior year: CHF 23.0 million). An equivalent reduction in the interest rate would have reduced the Group result and other comprehensive income by a similar amount. This analysis is based on the assumption that all other variables remain unchanged.
Mobimo's variable-rate financial liabilities are exposed to interest-rate-related cash flow risk. These liabilities generally bear interest at three-month Libor plus a margin. Of the variable-rate financial liabilities outstanding as at the reporting date, CHF 118.7 million was hedged by interest rate swaps. A change in the interest rate therefore results in a change in the fair value of the interest rate swaps (see Note 12). For the remaining CHF 13.3 million of variable-rate financial liabilities as well as cash, an increase in the interest rate of 100 basis points would have only had an immaterial effect on the Group result due to the negative-interest-rate environment. This analysis is based on the assumption that all other variables remain unchanged.
The carrying amounts in the annual financial statements for cash, trade receivables, other current receivables and current liabilities are very close to the fair values given the short terms involved. Interest rate swaps and forward rate agreements are recognised at fair value in the balance sheet as at the reporting date. Fair value corresponds to the present value of the forward contract.
For fixed-rate financial liabilities, fair value corresponds to the time value of the future cash flows to be discounted as at the reporting date using the market interest rate. Rates of interest for discounting future cash flows are based on money and capital market rates as at the time of valuation plus an adequate interest spread of 0.80% (prior year: 0.80%). The discount rates used as at 31 December 2016 were between 0.14% and 1.49% (prior year: between 0.10% and 1.70%). The fair value of the bond corresponds to the closing price on the stock exchange as at the reporting date.
| Carrying amount 31.12.2016 |
Fair value 31.12.2016 |
Carrying amount 31.12.2015 |
Fair value 31.12.2015 |
|
|---|---|---|---|---|
| Mort | ||||
| gages (Level 2) |
836,441 | 908,941 | 854,204 | 932,321 |
| Bonds (Level 1) |
512,960 | 545,643 | 512,453 | 540,313 |
| Total | 1,349,401 | 1,454,583 | 1,366,657 | 1,472,633 |
The table below analyses financial instruments carried at fair value by valuation method as at 31 December 2016. For an explanation of the individual levels, see Note 5 "Investment properties".
Mobimo does not hold any financial instruments carried at fair value that would be classified as Level 1 or 3.
The table below shows the carrying amounts of all financial instruments by category:
| TCHF | Carrying amount 2016 |
Carrying amount 2015 |
|---|---|---|
| Loans and receivables | ||
| Cash | 173,869 | 222,897 |
| Trade receivables | 13,479 | 3,839 |
| Other receivables1 | 24,364 | 1,068 |
| Accrued income and prepaid expenses2 | 2,024 | 3,116 |
| Financial assets (loans) | 117 | 0 |
| Total loans and receivables | 213,854 | 230,919 |
| Financial assets available for sale | ||
| Financial assets | 1,849 | 1,849 |
| Financial liabilities measured at amortised cost | ||
| Trade payables3 | 16,184 | 6,724 |
| Other payables4 | 9,181 | 4,887 |
| Accrued expenses and deferred income5 | 28,881 | 17,772 |
| Financial liabilities | 1,349,401 | 1,366,657 |
| Total liabilities measured at amortised cost | 1,403,647 | 1,396,040 |
| Financial liabilities held for trading purposes | ||
| Derivative financial instruments | 9,061 | 9,997 |
| Financial liabilities held for hedging purposes | ||
| Derivative financial instruments | 30,773 | 29,000 |
1 Not including tax receivables and receivables in connection with social security and advance payments.
2 Not including costs paid in advance.
3 Not including rents and ancillary costs paid in advance.
4 Not including tax payables and payables in relation to social security.
5 Not including deferred income taxes and unused annual leave.
Impairments totalling CHF –2.5 million were recognised in the prior year.
The Board of Directors seeks to ensure a solid capital base. In accordance with the investment guidelines, the equity ratio must be greater than 40%. With regard to its capital structure, Mobimo aims to achieve long-term Net Gearing (ratio of net debt to shareholders' equity) of a maximum of 150%.
Some of the contracts concluded with lenders contain clauses concerning minimum capitalisation (financial covenants). The key figures used are equity ratio, Net Gearing and interest coverage factor. They were complied with without exception during the reporting period.
The key figures as at the reporting date are as follows:
| TCHF | 31.12.2016 | 31.12.2015 |
|---|---|---|
| Equity | 1,366,267 | 1,264,691 |
| Equity and liabilities | 3,031,688 | 2,952,878 |
| Equity ratio | 45.1% | 42.8% |
| Current financial liabilities | 92,597 | 24,403 |
| Non-current financial liabilities | 1,256,804 | 1,342,254 |
| Cash | –173,869 | –222,897 |
| Net financial debt | 1,175,532 | 1,143,760 |
| Equity | 1,366,267 | 1,264,691 |
| Net Gearing | 86.0% | 90.4% |
Consolidated annual financial statements: Notes to the consolidated annual financial statements Personnel
Personnel expense can be broken down as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| Salaries | –16,442 | –14,667 |
| Profit-sharing (management/employees) |
–4,076 | –3,529 |
| Social security contributions | –1,731 | –1,496 |
| Defined contribution plans | –213 | –206 |
| Defined benefit plans | –1,532 | –565 |
| Compensation for Board of Directors | –1,180 | –1,166 |
| External training and education costs | –165 | –232 |
| Other personnel expenses | –1,963 | –1,557 |
| Total personnel expenses | –27,302 | –23,418 |
| Headcount at 31 December | ||
| (full-time basis) | 135,7 | 107,8 |
| Average headcount (full-time basis) | 126,2 | 107,4 |
The growth in the headcount is due mainly to the first-time inclusion of FM Service und Dienstleistungs AG in the consolidation of the Mobimo Group and to the growth of this company.
In the year under review, the Board of Directors and Executive Board were paid the following compensation, reported in personnel expense:
| TCHF | 2016 | 2015 |
|---|---|---|
| Members of the Board of Directors/ Executive Board |
–6,337 | –6,312 |
| Broken down as follows | ||
| • salaries | –4,295 | –4,228 |
| • share-based payments | –1,383 | –1,424 |
| • social security contributions | –659 | –660 |
Further details of Board of Directors and Executive Board remuneration can be found in Note 19.
Liabilities from defined benefit plans are determined annually for each plan by setting the present value of the defined benefit obligation using the projected unit credit method. The discount rate used for the calculation is based on the interest rate of first-class industrial bonds with very similar maturities to the liabilities. The fair value of the plan assets is subsequently deducted. Pension costs, which are recognised in the income statement, comprise current service cost, past service cost, gains and losses on settlement and net interest expense. Gains and losses on plan curtailments are a component of past service cost. Net interest expense corresponds to the discount rate multiplied by the net benefit obligation as at the beginning of the financial year. Any revaluations, comprising actuarial gains and losses resulting from changes in assumptions and experience adjustments as well as investment income less contributions that are included in net interest expense, are recognised in other comprehensive income.
All Mobimo employees work in Switzerland. Pension plans in Switzerland are regulated by the Swiss Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans (BVG). For the purposes of mandatory (legal minimum) and non-mandatory employee benefit insurance, Mobimo is thus affiliated with group administration plans ("Sammelstiftungen") that are organised as independent legal entities in accordance with the BVG. Participants in the plan are insured against the economic consequences of old age, disability and death. The various benefits are stipulated in regulations; the BVG lays down minimum benefits. Contributions to the pension plan are paid by the employer and employees. In the case of a deficit, various measures (such as adjusting pension benefits by changing the conversion rates or by raising the amount of current contributions) may be approved.
The BVG regulates how any deficit reduction measures are to be borne jointly by the employees and the employer. As Mobimo may be consequently obliged to finance deficit reduction measures, mandatory employee benefit insurance and the savings process involved in non-mandatory employee benefit insurance qualify as defined benefit plans under IAS 19.
The risks of death and disability under non-mandatory employee benefit insurance are fully reinsured. Risk insurance for non-mandatory employee benefit insurance qualifies as a defined contribution plan under IAS 19. Employer contributions are charged to the income statement.
Benefit obligations developed as follows in the year under review:
| TCHF | 2016 | 2015 |
|---|---|---|
| Present value of benefit obligations at | ||
| the beginning of the period | 30,537 | 28,970 |
| Employer's current service cost | 1,587 | 1,394 |
| Interest expense | 270 | 359 |
| Employee contributions | 908 | 802 |
| Amounts paid | 330 | –621 |
| Actuarial (gains) losses | ||
| • Effect of changes in demographic assumptions |
–646 | 0 |
| • Effect of changes in financial assumptions |
845 | 1,201 |
| • Effect of experience adjustments | 2,509 | –680 |
| Past service cost | –101 | –887 |
| Additions from business combinations | 3,979 | 0 |
| Present value of benefit obligations at the end of the period |
40,218 | 30,537 |
The effect of changes in financial assumptions (increase of CHF 0.8 million) in the 2016 financial year is mainly attributable to the reduction in the discount rate from 0.9% to 0.6%. The prior year's increase of CHF 1.2 million was mainly based on the reduction of the discount rate that year from 1.3% to 0.9%.
Plan assets developed as follows in the year under review:
| TCHF | 2016 | 2015 |
|---|---|---|
| Plan assets at market values at | ||
| the beginning of the period | 24,697 | 23,504 |
| Interest income | 223 | 301 |
| Employer contributions | 1,026 | 905 |
| Employee contributions | 908 | 802 |
| Amounts paid | 330 | –621 |
| Return on plan assets (excluding interest | ||
| income) | 3,280 | –194 |
| Additions from business combinations | 2,589 | 0 |
| Plan assets at market values at the end of the period |
33,055 | 24,697 |
The amounts recognised in the balance sheet for the defined benefit plans are made up as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| Present value of benefit obligations | 40,218 | 30,537 |
| Market value of plan assets | –33,055 | –24,697 |
| Net liability | 7,163 | 5,840 |
The expense recognised for these plans in the income statement is made up as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| Current service cost | –1,587 | –1,394 |
| Interest expense | –270 | –359 |
| Interest income on plan assets | 223 | 301 |
| Recognition of past service cost | 101 | 887 |
| Net benefit expense | –1,532 | –565 |
As in the prior year, the positive amount recognised in past service cost is attributable to the reduction in the conversion rate decided by the foundation board.
The expected employer contributions for the 2017 financial year are CHF 1.1 million.
Consolidated annual financial statements: Notes to the consolidated annual financial statements Personnel
The following amounts are recognised in other comprehensive income under total comprehensive income:
| TCHF | 2016 | 2015 |
|---|---|---|
| Actuarial gains (losses) | ||
| • Effect of changes in demographic assumptions |
646 | 0 |
| • Effect of changes in financial assumptions |
–845 | –1,201 |
| • Effect of experience adjustments | –2,509 | 680 |
| Return on plan assets (excluding interest income) |
3,280 | –194 |
| Other effects | –1,390 | 0 |
| Total remeasurements included in other comprehensive income |
–817 | –714 |
The net obligation recognised in the balance sheet changed as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| At 1 January | 5,840 | 5,466 |
| Company's net benefit expense | 1,532 | 565 |
| Employer contributions | –1,026 | –905 |
| Remeasurements included in other comprehensive income |
817 | 714 |
| At 31 December | 7,163 | 5,840 |
Plan assets can be broken down into the following categories:
| Asset classes | Plan assets 2016 in % |
Market Values 2016 in TCHF |
Plan assets 2015 in % |
Market Values 2015 in TCHF |
|---|---|---|---|---|
| Cash and cash equivalents |
3% | 996 | 6% | 1,451 |
| Shares (listed) | 29% | 9,475 | 30% | 7,313 |
| Bonds and notes (listed) |
46% | 15,351 | 44% | 10,766 |
| Real estate | 17% | 5,556 | 16% | 3,855 |
| Alternative investments |
5% | 1,677 | 5% | 1,313 |
| Total | 100% | 33,055 | 100% | 24,697 |
As at 31 December 2016, plan assets did not include treasury shares or real estate being subject to the company's own use.
The following assumptions were applied to the expense reported in the income statement and pension liability reported in the balance sheet:
| 2016 | 2015 | |
|---|---|---|
| Assumptions for the expenses in the income statement: |
||
| Discount rate | 0.9% | 1.3% |
| Expected future salary increases | 1.3% | 1.3% |
| Expected future pension benefit increases |
0.1% | 0.1% |
| Longevity at age 65 for current members aged 45 |
||
| • Males | 24.3 | 23.3 |
| • Females | 26.3 | 25.7 |
| Longevity at age 65 | ||
| • Males | 22.4 | 21.6 |
| • Females | 24.4 | 24.1 |
| Assumptions for the pension liability in the balance sheet |
||
| Discount rate | 0.6% | 0.9% |
| Expected future salary increases | 1.3% | 1.3% |
| Expected future pension benefit increases |
0.1% | 0.1% |
A change in the assumptions of +/- 25 basis points would have the following percentage impact on the present value of the benefit obligations:
| Discount rate 2016 |
Salary increases 2016 |
Pension increases 2016 |
|
|---|---|---|---|
| Impact on present value of benefit obligations due to the following changes: |
|||
| Increase of 25 basis points |
–3.5% | 0.3% | 1.1% |
| Decrease of 25 basis points |
3.8% | –0.3% | –1.1% |
| Discount rate 2015 |
Salary increases 2015 |
Pension increases 2015 |
|
|---|---|---|---|
| Impact on present value of benefit obligations due to the following changes: Increase of 25 basis points |
–3.1% | 0.2% | 1.0% |
| Decrease of 25 basis points |
3.4% | –0.2% | –1.0% |
The following future benefit payments of the pension plan are expected for benefit obligations:
| TCHF | 2016 | 2015 |
|---|---|---|
| Up to 1 year | 491 | 413 |
| Up to 5 years | 2,963 | 2,504 |
| Over 5 years | 36,764 | 27,620 |
| Total | 40,218 | 30,537 |
Based on a DBO cash-flow calculation, the duration of benefit obligations as at the reporting date was 19.0 years (prior year: 18.6 years).
Share-based payments are transactions whereby the Mobimo Group receives goods or services in return for equity instruments such as shares or options. The Board of Directors and the Executive Board are currently subject to compensation rules under which compensation is paid partly in the form of shares. Both schemes are classified as share-based payments. The costs of share-based payments are recognised in the income statement in personnel expense, spread over the vesting period. The corresponding counter-posting is recorded in equity. The vesting period is the period during which unlimited entitlement to the shares or options granted is earned. The valuation is based on the fair value of the equity instruments as at the grant date. The grant date is the date on which both parties agree to the plan for the share-based payment and reach a joint agreement on the terms and conditions of the plan.
In accordance with the regulations that came into effect in the 2009 financial year, the Board of Directors receives fixed compensation structured on a modular basis. The modules used reflect members' individual activities on the Board of Directors, thus ensuring that compensation is commensurate with the level of responsibility and time involved. Each member of the Board of Directors may receive the compensation in cash or partly or fully in shares in accordance with the allocation resolution. In total, compensation of CHF 0.9 million was paid in cash (prior year: CHF 1.0 million) and CHF 0.3 million in the form of shares (1,239 shares) in 2016 (prior year: CHF 0.2 million, 1,170 shares).
Under the current compensation regulations (valid from 1 January 2015), 65% of variable compensation will be based on quantitative criteria and 35% on qualitative criteria that are themselves based on Mobimo's strategy. The Board of Directors has defined the key performance figure for calculating the quantitative target as the return on equity before accumulated revaluation income. However, entitlement to compensation is conditional on the company achieving a minimum return on equity before revaluation income of 4.5%. Once this minimum return on equity has been achieved, the entitlement of the Executive Board members rises on a straight line basis within a range defined by the Board of Directors.
Consolidated annual financial statements: Notes to the consolidated annual financial statements Personnel
Variable compensation is capped at 100% of the fixed salary. The regulations then allow the Board of Directors to reduce variable compensation if a dividend/capital repayment at least equivalent to that of the prior year cannot be distributed to shareholders. At least 50% of the variable compensation is paid in shares in the company. The shares issued are subject to a vesting period, generally five years.
For the 2016 financial year, a total of 4,291 shares (prior year: 4,996) were granted to the Executive Board as a share of profits. The cost of the approved share allocation was recognised as CHF 1.1 million (prior year: CHF 1.1 million), measured at the share price as at 31 December 2016 of CHF 254.75 per share (prior year: CHF 222.70). Share-based compensation for the Executive Board was based on the assumption that 50% would be taken in the form of shares (prior year: 50%).
The final 1,564 outstanding options were exercised in the prior year. No more outstanding options exist.
Mobimo has deferred tax liabilities of CHF 158.4 million. Deferred taxes are almost exclusively attributable to valuation differences in respect of investment properties and investment properties under construction.
The taxation of gains on the disposal of properties is subject to a special property gains tax in various cantons. The tax rates applied depend on the length of time the property is held and can vary significantly.
In the calculation of deferred taxes on investment properties, a residual holding period is estimated for each property that reflects Mobimo's strategy. The tax payable on these properties is calculated on the basis of a holding period of up to 20 years. Should the actual holding period for a property deviate from the estimated holding period, the amount of tax applicable at the time the property is sold may vary considerably from the deferred tax estimated.
Applying the property gains tax rates that would be payable in the event of a theoretical sale of all properties on 1 January 2017, the deferred tax liabilities would be CHF 36.6 million higher than the reported deferred tax liabilities.
Various property gains tax amounts due on property sales in the current and previous periods are not yet definitive as at the reporting date. If the definitive amounts involved are not the same as the initial calculations, this may have a material effect on the tax expense for future periods.
Income taxes include current and deferred income taxes. They are recognised in the income statement, with the exception of income tax on transactions recognised in other comprehensive income or directly in equity. In these cases, income tax is similarly charged to other comprehensive income or directly to equity.
Current income taxes include the expected taxes payable on the relevant taxable result, calculated using the tax rates applying or announced at the reporting date, capital gains taxes on property sales effected and any adjustments to tax liabilities or assets from previous years.
Deferred taxes are recognised for temporary differences between the respective tax bases in the tax balance sheet and the consolidated balance sheet, in accordance with the balance sheet liability method. Measurement of deferred taxes takes account of the point in time when and the manner in which the assets/liabilities in question are expected to be realised/ settled. The tax rates used are those that are applicable or announced as at the reporting date.
Deferred tax assets can only be recognised to the extent that it is probable that future profits will be available against which the temporary differences can be offset.
Consolidated annual financial statements: Notes to the consolidated annual financial statements Income tax
Tax expense can be broken down as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| Total current tax expense | –24,466 | –26,239 |
| Deferred tax | ||
| Change in deferred tax | –10,638 | –9,674 |
| Recognition of tax effects on tax loss carryforwards |
0 | 1,500 |
| Changes in tax rate on deferred tax items recognised |
19,974 | 317 |
| Total deferred tax income/expense | 9,336 | –7,856 |
| Total income tax expense | –15,130 | –34,095 |
On 20 March 2016, the electorate in the Canton of Vaud voted in a referendum in favour of the canton's new tax law, whose provisions include a substantial reduction in the canton's corporate tax rate. Consequently, the new lower tax rates are to already be applied for the calculation of deferred taxes for temporary differences realised only after 1 January 2019. This gives rise to a non-recurring positive effect of CHF 21.5 million in deferred tax liabilities, in particular on the differences in values of investment properties. The new law provides for the canton's governing council to propose measures to the canton's executive body should expected amendments be delayed at federal level.
Current tax expense contains an expense reduction of CHF 0.3 million (prior year expenses: CHF 0.6 million) in tax on profits from prior periods.
Property gains tax is also contained in current tax expense and is incurred in those cantons that tax property gains on the disposal of properties and is thus cyclical in nature.
Unresolved questions with regard to the ruling issued by the Swiss Federal Supreme Court on 4 April 2011 and its implementation, which put an end to a legal dispute between Mobimo and the City of Zurich with respect to property gains tax, were clarified in 2014. This allowed for the conclusion in the 2014 and 2015 financial years of property gains tax cases that had long been pending.
Current tax expense and other income (equity) include current tax expenses of CHF 0.9 million (prior year: CHF 1.3 million) from recognising the losses on financial instruments classified as cash flow hedges (interest rate swaps).
Tax expense can be analysed as follows:
| Unit | 2016 | 2015 | |
|---|---|---|---|
| Group profit before tax | TCHF | 174,548 | 139,076 |
| Applicable tax rate | % | 25 | 25 |
| Tax expense at applicable tax rate | TCHF | –43,637 | –34,769 |
| Non-deductible expenses | TCHF | –44 | –32 |
| Reversal for prior-year current tax | TCHF | 841 | 1,843 |
| Utilisation of previously unrecognised tax losses |
TCHF | –1,131 | 0 |
| Recognition of tax effects on tax loss carryforwards |
TCHF | 0 | 1,500 |
| Expense/income which is taxed at a lower/higher tax rate |
TCHF | 8,443 | –2,359 |
| Impact of changes in tax rate on deferred tax items recognised |
TCHF | 19,974 | –317 |
| Other effects | TCHF | 424 | 40 |
| Total taxes | TCHF | –15,130 | –34,095 |
The applicable tax rate in the year under review is a mixed rate. It takes account of the fact that gains subject to cantonal and municipal taxes are currently taxed at an average rate of 22% (including direct federal tax), while property gains subject to property gains tax are taxed at rates of up to 35%.
Deferred tax liabilities and assets are allocated to the following balance sheet items:
| TCHF | 2016 Assets |
2016 Liabilities |
2015 Assets |
2015 Liabilities |
|---|---|---|---|---|
| Investment properties |
156,089 | 166,483 | ||
| Employee benefit obligation |
1,354 | 1,139 | ||
| Other items | 2,162 | 7,645 | 2,184 | 2,181 |
| Deferred taxes on temporary differences |
3,516 | 163,734 | 3,322 | 168,664 |
| Tax benefit of offsettable loss carryforwards |
4,266 | 4,678 | ||
| Total deferred taxes |
7,782 | 163,734 | 8,000 | 168,664 |
| Offset of deferred tax assets and liabilities |
–5,295 | –5,295 | –5,875 | –5,875 |
| Deferred tax assets/liabilities |
2,488 | 158,440 | 2,126 | 162,789 |
Deferred tax assets for loss carryforwards are recognised to the extent that it is probable that future taxable profits will be available against which the loss carryforwards can be utilised.
According to the current practice of the Zurich Cantonal Tax Office, cantonal losses for the purposes of income tax cannot be completely offset against gains in the same year. However, these losses are carried forward and may be offset against future gains. The tax benefit that Mobimo recognised in the income statement on these prior period losses in the year under review decreased by CHF 0.7 million to CHF 3.7 million (prior year: increase recognised in the income statement of the tax benefit from CHF 1.5 million to CHF 4.4 million).
Other assets of CHF 0.6 million in the year under review (prior year: CHF 0.3 million) relate to offsettable loss carryforwards for direct federal, cantonal and communal taxes of CHF 2.5 million (prior year: CHF 1.0 million). There were otherwise no unrecognised loss carryforwards, as in the prior year.
No deferred taxes were recognised for undistributed earnings of subsidiaries, since no taxes are expected if a distribution were to take place.
Of the net decrease in deferred tax liabilities of CHF 4.7 million (from CHF 160.7 million to CHF 156.0 million), CHF 4.8 million resulted from the acquisition of BSS&M Real Estate AG. In addition, CHF –9.3 million was recognised in the income statement; CHF –0.1 million was recognised in small part in financial instruments and in large part directly in other comprehensive income under the employee benefit obligation (prior year: net increase of CHF 40.4 million from CHF 120.3 million to CHF 160.7 million, of which CHF 31.5 million from the acquisition of Dual Real Estate Investment SA and CHF 1.2 million from the acquisition of ProviHold SA, with CHF 7.9 million recognised in the income statement and CHF –0.2 million directly in other comprehensive income).
Consolidated annual financial statements: Notes to the consolidated annual financial statements Other notes
Operating expense includes expenditure on IT, communication, general marketing, general office expenses and non-reclaimable input tax.
Also included in operating expense are capital taxes of CHF 0.6 million (prior year: CHF 0.5 million) and planning costs of CHF 1.4 million (prior year: CHF 1.1 million). Planning costs relate to expenditure on the development and compilation of feasibility studies for projects subject to external influences that Mobimo cannot influence and for which there is uncertainty as to whether they can be at all realised. For this reason, these costs have been charged to operating expense until there is certainty about the realisation of the projects in question. Once this is the case, these costs will be capitalised.
Administrative expenses can be broken down as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| Consulting expense | –2,140 | –1,989 |
| Consulting expense in respect of related parties |
–78 | –120 |
| Other administrative expenses | –773 | –287 |
| Total administrative expenses | –2,990 | –2,395 |
For further details of expense in respect of related parties, see Note 31. Other administrative expenses in the year under review include CHF 0.3 million in external administration costs of the acquired BSS&M Real Estate AG.
Trade receivables can be broken down as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| Outstanding purchase prices real | ||
| estate due from third parties | 2,417 | 57 |
| Outstanding rents and ancillary costs due from third parties |
5,603 | 4,685 |
| Outstanding rents and ancillary costs due from associates and joint ventures |
229 | 256 |
| Less doubtful debt allowance for outstanding rent and ancillary costs |
–851 | –1,159 |
| Receivables current projects | 6,081 | 0 |
| Total trade receivables | 13,479 | 3,839 |
The age structure of receivables that are not impaired is as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| Not past due | 7,319 | 3,609 |
| Up to 30 days | 30 | 98 |
| Up to 90 days | 29 | 108 |
| Over 90 days | 21 | 24 |
| Total | 7,398 | 3,839 |
Doubtful debt allowances for outstanding rent and ancillary costs changed as follows in the year under review:
| TCHF | 2016 | 2015 |
|---|---|---|
| Specific valuation allowance | ||
| At 1 January | 1,159 | 883 |
| Change in valuation allowance | –309 | 277 |
| At 31 December | 851 | 1,159 |
There were no general valuation allowances as at the reporting date. Based on past experience, Mobimo does not expect any additional defaults.
Other receivables can be broken down as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| Tax receivables | ||
| (withholding tax and VAT) | 404 | 47 |
| Receivables WIR | 1,235 | 323 |
| Advance payments for land purchases | 773 | 224 |
| Receivables from related parties | 80 | 0 |
| Escrow property tax payments | 5,825 | 22,989 |
| Other receivables from third parties | 23,113 | 808 |
| Total other receivables | 31,430 | 24,391 |
The item other receivables from third parties includes CHF 22.7 million of cash pledged to banks as collateral
Property, plant and equipment, including owner-occupied properties, is measured at cost less accumulated depreciation and any accumulated impairment losses.
Property, plant and equipment is depreciated using the straightline method over its estimated useful life.
Useful life is as follows:
| Buildings | 50 years |
|---|---|
| Interior fixtures and fittings | 15 years |
| Building services | 15 years |
| Office furnishings | 8 years |
| Office equipment | 5 years |
| Telephone installations | 5 years |
| Vehicles | 5 years |
| Hardware | 3 – 4 years |
The carrying amount of property, plant and equipment is assessed at least once a year. If there are indications that an asset may be impaired, an impairment test is carried out.
Consolidated annual financial statements: Notes to the consolidated annual financial statements Other notes
| TCHF | Owner occupied properties |
Other P,P & E in use |
Other P,P & E under construction |
2016 Total |
|---|---|---|---|---|
| Cumulative acquisition values |
||||
| Balance at 1 January | 21,649 | 5,113 | 964 | 27,726 |
| Additions | 239 | 973 | 306 | 1,517 |
| Disposals | 0 | –101 | 0 | –101 |
| Transfers to trading properties |
–934 | 0 | 0 | –934 |
| Additions from business combinations |
0 | 44 | 0 | 44 |
| Balance at 31 December |
20,954 | 6,029 | 1,269 | 28,253 |
| Cumulative depreciation |
||||
| Balance at 1 January | –6,380 | –2,960 | 0 | –9,340 |
| Depreciation | –874 | –839 | 0 | –1,714 |
| Disposals | 0 | 71 | 0 | 71 |
| Transfers to trading properties |
283 | 0 | 0 | 283 |
| Balance at 31 December |
–6,972 | –3,728 | 0 | –10,700 |
| Net carrying amount at 31 December |
13,982 | 2,301 | 1,269 | 17,553 |
| Total other P,P & E at 31 December |
3,570 |
Owner-occupied properties include the property at Kusnacht, Seestrasse 59, and part of the property at Lausanne, Rue de Genève 7, which are used by Mobimo Management AG as its administrative premises. Also included is a room for cultural activities at the property in Lausanne, Rue des Cotes-de-Montbenon 16. The usage of the property in Aarau, Buchsertrasse 27, as a project office and showroom for the "AQA" construction projects in Aarau was discontinued in the year under review and the property reclassified as a trading property.
Other property, plant and equipment comprises computer hardware, movables and vehicles. Property, plant and equipment does not include any items under financial leasing arrangements.
Other property, plant and equipment currently under construction comprises a power plant in Kriens. Once completed, the plant will provide residents and third parties in the Kriens, Mattenhof district with heating and cooling supplies.
| TCHF | Owner occupied properties |
Other P, P & E in use |
Other P, P & E under construction |
2015 Total |
|---|---|---|---|---|
| Cumulative acquisition values |
||||
| At 1 January | 21,534 | 4,560 | 0 | 26,094 |
| Additions | 115 | 554 | 496 | 1,165 |
| Transfers from commercial property |
0 | 0 | 467 | 467 |
| Balance at 31 December |
21,649 | 5,113 | 964 | 27,726 |
| Cumulative depreciation |
||||
| At 1 January | –5,468 | –2,273 | 0 | –7,741 |
| Depreciation | –912 | –687 | 0 | –1,599 |
| Balance at 31 December |
–6,380 | –2,960 | 0 | –9,340 |
| Net carrying amount at 31 December |
15,269 | 2,153 | 964 | 18,386 |
| Total other P,P & E at 31 December |
3,117 |
Consolidated annual financial statements: Notes to the consolidated annual financial statements Other notes
Mobimo classifies the purchase rights/construction projects and software categories as intangible assets. Mobimo acquires purchase rights when it makes payments for the right to purchase a plot of land. Development services carried out for third parties and own work carried out on projects using noncurrent assets where a contractual basis for the acquisition of land exists but the title to the land has not yet been transferred are reported under construction projects. The software category comprises software that has been purchased for operational purposes. Intangible assets are measured at cost. Software is amortised individually over an estimated useful life of generally three to five years.
The carrying amount of intangible assets is assessed at least once a year. If there are indications that an asset may be impaired, an impairment test is carried out.
Recoverable amounts are calculated annually for other intangible assets with an indefinite useful life and intangible assets not yet available for use, even if there are no indications of impairment.
| TCHF | Purchase options/construc tion projects |
Software | 2016 Total |
|---|---|---|---|
| Cumulative acquisition values |
|||
| Balance at 1 January | 4,079 | 4,395 | 8,475 |
| Additions | 246 | 2,051 | 2,297 |
| Transfers to investment properties under construction |
0 | 92 | 92 |
| Balance at 31 December | 4,325 | 6,539 | 10,864 |
| Cumulative amortisation and impairment losses |
|||
| At 1 January | 0 | –1,582 | –1,582 |
| Amortisation | 0 | –843 | –843 |
| Impairment losses | –2,165 | 0 | –2,165 |
| Balance at 31 December | –2,165 | –2,425 | –4,590 |
| Net carrying amount at 31 December |
2,160 | 4,114 | 6,274 |
Purchase options/construction projects consist of a notarised purchase option for a plot in Merlischachen, Canton of Schwyz, and capitalised development costs for a construction project in Zurich Oerlikon in which Mobimo is not yet the owner of the property in question but has concluded a purchase contract. During the year under review it emerged that the notarised purchase option in Merlischachen was recognised in the balance sheet above its recoverable amount and an impairment was duly recognised.
| Purchase options/construc |
2015 | ||
|---|---|---|---|
| TCHF | tion projects | Software | Total |
| Cumulative acquisition values |
|||
| Balance at 1 January | 3,706 | 2,923 | 6,629 |
| Additions | 373 | 1,473 | 1,846 |
| Balance at 31 December | 4,079 | 4,395 | 8,475 |
| Cumulative amortisation and impairment losses |
|||
| Balance at 1 January | 0 | –1,041 | –1,041 |
| Amortisation | 0 | –541 | –541 |
| Balance at 31 December | 0 | –1,582 | –1,582 |
| Net carrying amount at 31 December |
4,079 | 2,813 | 6,892 |
Consolidated annual financial statements: Notes to the consolidated annual financial statements Other notes
Ownership interests of between 20% and 50% in companies over which Mobimo exerts a significant influence but does not control, as well as shares in joint ventures, are accounted for using the equity method and recognised separately in the balance sheet. The market value of the pro rata net assets is determined at the time of acquisition and recognised in the balance sheet together with any goodwill under investments in associates. In subsequent reporting periods, this figure will be adjusted to reflect Mobimo's share of the additional capital and the profits generated, as well as any dividends.
| TCHF | 2016 | 2015 |
|---|---|---|
| FM Service&Dienstleistungs AG, Küsnacht (50% stake) |
n/a | 161 |
| Parking du Centre SA, Lausanne (50% stake) |
18,961 | 17,628 |
| Flonplex SA, Lausanne (40% stake) |
8,607 | 7,850 |
| Zentrum Oberhof AG, Inwil (26,4% stake, 40% voting rights) |
40 | n/a |
| Total | 27,609 | 25,639 |
On 5 April 2016, Mobimo Holding AG acquired the remaining 50% of the capital and voting rights of FM Service &Dienstleistungs AG, which is the reason why this company is no longer included in the portfolio (see Note 34) as at 31 December 2016.
The following is a summary of the key financial data of the joint venture, which has been adjusted to the principles of the consolidated annual financial statements of Mobimo until its full acquisition.
| Unit | 2016 | 2015 | |
|---|---|---|---|
| Current assets | TCHF | n/a | 944 |
| Non-current assets | TCHF | n/a | 29 |
| Current liabilities | TCHF | n/a | 651 |
| The assets and liabilities above include the following details: |
|||
| Cash and cash equivalents | TCHF | n/a | 709 |
| Revenue | TCHF | 625 | 2,865 |
| Depreciation and amortisation | TCHF | –1 | –5 |
| Tax expense | TCHF | 10 | –28 |
| Profit | TCHF | –42 | 111 |
| Net assets | TCHF | n/a | 322 |
| Proportion of the | |||
| ownership interest | % | n/a | 50 |
| Carrying amount of | |||
| the interest | TCHF | n/a | 161 |
Mobimo has a 50% investment in Parking du Centre SA, a car park operator in Lausanne held as a joint venture with Indigo Infra S.A. (formerly Vinci Park SA), a company active in the areas of urban mobility and parking solutions in Lausanne. The company is a public limited company under Swiss law, and Mobimo therefore has a claim on a share of the company's net assets. Mobimo accounts for its investment in Parking du Centre SA using the equity method.
The following is a summary of the key financial data of the joint venture that has been adjusted to the principles of the consolidated annual financial statements of Mobimo.
| Unit | 2016 | 2015 | |
|---|---|---|---|
| Current assets | TCHF | 3,292 | 2,832 |
| Non-current assets | TCHF | 52,600 | 53,575 |
| Current liabilities | TCHF | 3,822 | 4,625 |
| Non-current liabilities | TCHF | 14,147 | 16,525 |
| The assets and liabilities above include the following details: |
|||
| Cash and cash equivalents | TCHF | 3,118 | 2,431 |
| Financial liabilities | TCHF | 10,680 | 11,080 |
| Revenue | TCHF | 7,360 | 6,925 |
| Depreciation and amortisation | TCHF | –975 | –975 |
| Financial expense | TCHF | –344 | –473 |
| Tax expense | TCHF | 1,298 | –373 |
| Profit | TCHF | 3,866 | 2,387 |
| Net assets | TCHF | 37,923 | 35,257 |
| Proportion of the | |||
| ownership interest | % | 50 | 50 |
| Carrying amount of the interest |
TCHF | 18,961 | 17,628 |
| Dividends received | |||
| from joint venure | TCHF | 600 | 600 |
The reduction of the deferred tax rate had a positive effect on the result in the year under review. Without this effect, the result would have been in line with that of the prior year.
Flonplex SA is a cinema operator in Lausanne whose majority shareholder is fellow cinema operator Pathé Schweiz AG; Mobimo holds an investment of 40%. The company is a public limited company under Swiss law, and Mobimo therefore has a claim on a share of the company's net assets. Mobimo accounts for its investment in Flonplex SA using the equity method. The following is a summary of the key financial data of Flonplex SA, adjusted to the principles of the consolidated annual financial statements of Mobimo.
| Unit | 2016 | 2015 | |
|---|---|---|---|
| Current assets | TCHF | 2,556 | 2,575 |
| Non-current assets | TCHF | 23,956 | 23,875 |
| Current liabilities | TCHF | 3,468 | 2,545 |
| Non-current liabilities | TCHF | 1,527 | 4,281 |
| Revenue | TCHF | 11,721 | 12,077 |
| Profit | TCHF | 3,294 | 2,611 |
| Net assets | TCHF | 21,518 | 19,624 |
| Proportion of the | |||
| ownership interest | % | 40 | 40 |
| Carrying amount of | |||
| the interest | TCHF | 8,607 | 7,850 |
| Dividends received from | |||
| the associate | TCHF | 560 | 480 |
The reduction of the deferred tax rate had a positive effect on the result in the year under review. Without this effect, the result would have been in line with that of the prior year.
Zentrum Oberhof AG is a project company in Inwil in which BSS&M Real Estate AG holds an investment of 40%. Mobimo, for its part, holds 66% of the voting and capital rights of BSS&M Real Estate AG. This means that Mobimo has 40% of the voting rights and 26.4% of the capital rights. Zentrum Oberhof AG is a public limited company under Swiss law, and Mobimo therefore has a claim on a share of the company's net assets. Mobimo accounts for its investment in Zentrum Oberhof AG using the equity method. The project company was established for the purpose of developing the construction project. As at the reporting date, there was uncertainty surrounding the realisation of the originally planned project, which is why the value of the investment has been adjusted to its recoverable amount.
Consolidated annual financial statements: Notes to the consolidated annual financial statements Other notes
Financial assets comprise long-term loans to third parties and non-consolidated equity investments. Non-consolidated equity investments are those investments that give Mobimo less than 20% of the voting rights. Loans are recognised at amortised cost less any valuation allowance. Non-consolidated equity investments are classified as "available for sale" and measured at fair value; with the exception of impairments, changes in fair value are recognised in equity, not through the income statement. If a fair value cannot be reliably defined, the non-consolidated equity investment is measured at cost.
Trade and other short-term payables are measured at amortised cost, which generally corresponds to the nominal value of the payables.
Other payables totalling CHF 10.1 million (prior year: CHF 5.4 million) in the year under review and the prior year are for the most part deferred purchase price payments for acquisitions of companies that have already been completed. The residual amount comprises payables in connection with social security contributions, payables in connection with value added tax and other payables.
| TCHF | 2016 | 2015 |
|---|---|---|
| Loans to associates | 117 | 0 |
| Non-consolidated equity investments (available for sale) |
1,849 | 1,849 |
| Total | 1,966 | 1,849 |
Non-consolidated equity investments primarily comprise the investment in Parking Saint-François SA.
Financial assets changed as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| Cumulative acquisition values | ||
| Balance at 1 January | 1,849 | 1,850 |
| Additions | 117 | 0 |
| Additions from business combinations | 836 | 0 |
| Disposals | –836 | –1 |
| Balance at 31 December | 1,966 | 1,849 |
| Net carrying amount at 31 December | 1,966 | 1,849 |
| TCHF | 2016 | 2015 |
|---|---|---|
| Accruals for construction work | 9,224 | 3,917 |
| Accruals from property accounts | 6,699 | 3,308 |
| Accruals for interest | 3,651 | 3,649 |
| Accruals for services for related parties | 1,092 | 1,112 |
| Other items | 11,805 | 9,377 |
| Total accrued expenses and deferred income |
32,471 | 21,363 |
Related parties include shareholders who could exert a significant influence over Mobimo, the Board of Directors and management, associates controlled by members of the Board of Directors of the Mobimo Group and the Mobimo pension plan.
Note 17 gives details of the compensation paid to the members of the Board of Directors and Executive Board for their activities.
Among the companies controlled by members of the Boards of Directors are the consultancy firm weber schaub & partner ag, which is co-owned by Peter Schaub. The income statement includes expenses of TCHF 78 (prior year: TCHF 117) for tax consulting by weber schaub & partner ag. The expenses invoiced relate to tax consulting services provided by employees of the firm. Consulting services provided directly by Peter Schaub are covered by his director's compensation.
The Mobimo income statement contains the following items with joint ventures Parking du Centre S.A. and until its full acquisition FM Service &Dienstleistungs AG (see Note 27):
income from rental of properties of TCHF 516 (prior year: TCHF 529), other income of TCHF 90 (prior year: TCHF 388) for services rendered, direct expenses for rented properties of TCHF -29 (prior year: TCHF -131) and operating expense (rental expense) of TCHF -21 (prior year: TCHF -21). TCHF 40 (prior year: TCHF 64) was recognised as refurbishment costs in property acquisition costs.
In addition, services in the amount of TCHF 81 (prior year: TCHF 355) that come under property ancillary costs were performed through joint ventures. These can be passed on to tenants via ancillary cost charging.
The Mobimo income statement contains the following items with associates (see Note 27):
income from rental of properties of TCHF 210 (prior year: TCHF 210), other income of TCHF 22 (prior year: TCHF 22) for services rendered.
Transactions between Mobimo and the pension plans are listed in Note 18.
Mobimo does not possess any leasing agreements classified as finance leases. Payments for operating leases are recognised in the income statement over the term of the lease.
Obligations from non-cancellable rental and leasing agreements are as follows:
| TCHF | 2016 | 2015 |
|---|---|---|
| Rental and leasing obligations | ||
| up to 1 year | 154 | 156 |
| Rental and leasing obligations 1 to 5 years |
1,060 | 554 |
| Rental and leasing obligations over 5 years |
8,214 | 8,344 |
| Total future rental and leasing obligations |
9,428 | 9,054 |
The obligations relate primarily to building right interest for the properties St. Erhard, Langmatt and Basel, Lyonstrasse 40. The remaining obligations relate to third-party leases for premises and car park facilities. The rental and leasing expenses charged to the income statement were CHF 0.3 million (prior year: CHF 0.1 million).
Consolidated annual financial statements: Notes to the consolidated annual financial statements Other financial information
Earnings per share are calculated from the Group result attributable to the shareholders of Mobimo Holding AG, divided by the weighted average number of shares outstanding during the reporting period. Diluted earnings per share additionally take account of any shares arising from the exercise of option or conversion rights.
| 2016 | 2015 | |
|---|---|---|
| Calculation of earnings per share | ||
| Number of outstanding shares at 1 January | 6,216,923 | 6,214,983 |
| + Effect of capital increase (average) | 0 | 1,304 |
| + Effect of change in holdings of treasury shares | –1,184 | –8 |
| = Average number of outstanding shares | 6,215,739 | 6,216,279 |
| Effect of outstanding options: | ||
| + Average number of potential shares | 0 | 298 |
| ./. Average number of shares which would be issued at average market value | 0 | –41 |
| = Effective number of shares as basis for calculation of diluted earnings per share | 6,215,739 | 6,216,536 |
| Profit in TCHF (attributable to the shareholders of Mobimo Holding AG) | 158,656 | 103,937 |
| ./. Net income from revaluation in TCHF (attributable to the shareholders of Mobimo Holding AG) | –78,989 | –33,772 |
| + Attributable deferred tax in TCHF | 19,747 | 8,443 |
| = Profit not including revaluation (and attributable deferred tax) in TCHF | 99,415 | 78,608 |
| Profit in TCHF (attributable to the shareholders of Mobimo Holding AG) | 158,656 | 103,937 |
| Profit not including revaluation in TCHF | 99,415 | 78,608 |
| Earnings per share in CHF | 25.52 | 16.72 |
| Diluted earnings per share in CHF | 25.52 | 16.72 |
| Earnings per share not including revaluation (and attributable deferred tax) in CHF | 15.99 | 12.65 |
| Diluted earnings per share not including revaluation (and attributable deferred tax) in CHF | 15.99 | 12.64 |
| Calculation of net asset value (NAV) per share | ||
| Number of outstanding shares at 31 December | 6,216,126 | 6,216,923 |
| Number of shares as basis for calculation of diluted NAV | 6,216,126 | 6,216,923 |
| Equity at 31 December in TCHF (attributable to the shareholders of Mobimo Holding AG) | 1,350,936 | 1,258,617 |
| = Shareholders' equity after option exercise in TCHF (attributable to the shareholders of Mobimo Holding AG) | 1,350,936 | 1,258,617 |
| NAV per share in CHF | 217.33 | 202.45 |
| NAV per share, diluted, in CHF | 217.33 | 202.45 |
The consolidated annual financial statements encompass all companies over which Mobimo Holding AG has either direct or indirect control. Control is deemed to exist where Mobimo is exposed to fluctuating income as a result of its holdings in a company and has rights over such income. Mobimo must also have the ability to influence this income through its power of disposal over the company. Group companies acquired or divested during the course of a year are consolidated from the date on which control is acquired or deconsolidated from the date on which control ceases. For fully consolidated companies, assets, liabilities, expenses and income are taken over on a 100% basis using the full consolidation method. All intragroup transactions and relationships and profit on intragroup transactions and balances are eliminated.
Ownership interests of between 20% and 50% in companies over which Mobimo exerts a significant influence, as well as shares in joint ventures, are accounted for using the equity method. See Note 27. Other interests are managed as financial investments. See Note 28.
Capital is consolidated at the time of acquisition using the purchase method. Companies holding real estate frequently do not, however, meet the definition of a business under IFRS 3. Upon such an acquisition, Mobimo allocates the costs of acquisition to the individually identifiable assets and liabilities at the time of acquisition on the basis of fair value. The acquisition of such a company does not result in goodwill. Non-controlling interests are shown separately from the Group's equity. Changes in the amount of proportionate interest that do not lead to loss of control are treated as transactions with equity owners. Any difference between the purchase price paid or the consideration received and the amount by which the non-controlling interests are being adjusted is recognised directly in equity.
The following companies fall under the scope of consolidation:
| Company | Domicile | Share capital in TCHF |
Ownership interest in % |
Consolidation method |
|---|---|---|---|---|
| Mobimo Holding AG | Lucerne | 180,327 | F | |
| BSS&M Real Estate AG | Küsnacht | 500 | 66.00 | F |
| CC Management SA | Geneva | 4,700 | 100.00 | F |
| Immobilien Invest Holding AG | Glarus | 150 | 75.33 | F |
| LO Holding Lausanne-Ouchy SA | Lausanne | 12,000 | 100.00 | F |
| LO Immeubles SA | Lausanne | 2,000 | 100.00 | F |
| Mobimo AG | Küsnacht | 72,000 | 100.00 | F |
| Mobimo Management AG | Küsnacht | 100 | 100.00 | F |
| O4Real AG | Lausanne | 1,000 | 100.00 | F |
| Petit Mont-Riond SA | Lausanne | 50 | 75.33 | F |
| Promisa SA | Lausanne | 100 | 100.00 | F |
| Flonplex SA | Lausanne | 2,000 | 40.00 | E |
| FM Service & Dienstleistungs AG | Küsnacht | 100 | 50.00 | E |
| Parking du Centre SA | Lausanne | 6,000 | 50.00 | E |
| Zentrum Oberhof AG | Inwil | 100 | 26,41 | E |
| Parking Saint-François SA | Lausanne | 1,150 | 26,522 | not cons. |
1 The share of voting rights is 40%.
2 The share of voting rights is 5%.
F = fully consolidated.
E = equity valuation. For more information, see Note 27.
not cons. = not consolidated. For more information, see Note 28.
In July 2016, 66% of the shares of BSS&M Real Estate AG (BSS&M) were acquired, a company operating in the fields of development, planning and realisation of real estate projects. However, as BSS&M meets the requirements of a business under IFRS 3, the acquisition is listed as a business combination. The company has no employees, but has a core team linked by mandate agreements. The purchase price was allocated fully to net assets.
The acquisition had the following effects on Mobimo's assets and liabilities:
| TCHF | Fair value |
|---|---|
| Cash | 1,579 |
| Trade receivables | 1,958 |
| Other receivables | 1,720 |
| Trading properties | 116,278 |
| Accrued income and prepaid expenses | 1,284 |
| Property, plant and equipment | |
| • Other property, plant and equipment | 26 |
| Investments in associates and joint ventures | 554 |
| Financial assets | 836 |
| Deferred tax assets | 1,040 |
| Current financial liabilities | –69,896 |
| Trade payables | –3,938 |
| Current tax liabilities | –1,088 |
| Other payables | –1 |
| Advance payments from buyers | –163 |
| Accrued expenses and deferred income | –8,623 |
| Non-current financial liabilities | –9,500 |
| Deferred tax liabilities | –5,809 |
| Identifiable net assets | 26,258 |
| Non-controlling interests | –8,928 |
| Purchase price | 17,330 |
| Unpaid conditional purchase price | –4,505 |
| Cash acquired | –1,579 |
| Net cash outflow | 11,246 |
During the period since the acquisition, BSS&M has contributed CHF 27.3 million to Group revenue or CHF –2.2 million to the Group result. If the acquisition had taken place on 1 January 2016, consolidated revenue would have totalled CHF 301.5 million and the Group result CHF 156.6 million. Transaction costs in connection with the acquisition totalling CHF –0.2 million were recognised under administrative expenses.
On 5 April 2016, Mobimo Holding AG acquired the remaining 50% of the capital and voting rights in FM Service & Dienstleistungs AG (FM), which had been established as a joint venture with a partner in 2014. This acquisition was carried out at the value of the pro-rata share of equity on the date of the takeover (CHF 0.28 million); in other words, CHF 0.14 million. Cash totalling CHF 0.5 million was acquired, which resulted in net cash flow of CHF 0.4 million. The company is fully consolidated and is included in the real estate segment. The purpose of the company is to provide services in the real estate area, in particular in facility management. The company has to date provided facility management and central services for the tenants of the property at Im Tiergarten 7, Friesenbergstrasse, Zurich. Based on its intention to extend these services to other Mobimo properties, Mobimo consequently decided to acquire the remaining shares of the joint venture partner.
During the period since the acquisition, FM has contributed CHF 2.6 million to Group revenue or CHF 0.1 million to the Group result. If the acquisition had taken place on 1 January 2016, consolidated revenue would have totalled CHF 270.2 million and the Group result CHF 159.4 million. The acquisition gave rise to no transaction costs.
In the first half of 2016, Mobimo acquired additional shares in Dual Real Estate Investment SA, the parent company of the Dual Group after having acquired the majority of the shares in November 2015 and two further small share packages in December 2015. The Dual Group comprises Dual Real Estate Investment SA and its subsidiary CC Management SA. The acquisition of these shares increases the proportionate interest to 99.7% (31 December 2015: 99.5%) and was recognised as a purchase of non-controlling interest in equity. As a consequence of the delisting of the Dual Real Estate Investment SA share, its last trading day on the Berne eXchange was 11 March 2016. The restructuring involved the merger of Dual Real Estate Investment SA, Freiburg via a squeeze-out-merger into LO Holding Lausanne-Ouchy SA, Lausanne with a journal entry of 5 December 2016. The remaining outstanding shares were also acquired in the process. Mobimo thus now holds 100% of the shares of CC Management SA, Geneva.
As part of a streamlining in the Group structure, the company ProviHold SA, Lausanne, which had been acquired on 4 September 2015, was merged into LO Immeubles SA, Lausanne, with a journal entry of 3 May 2016.
In the prior year, to simplify the Group structure, the company JJM Participations SA, Lausanne, was merged into Mobimo Holding AG, Lucerne.
Consolidated annual financial statements: Notes to the consolidated annual financial statements Other financial information
As at the reporting date, the following shareholders held 3% or more of the shares and options in Mobimo Holding AG:
| % | 2016 | 2015 |
|---|---|---|
| BlackRock, Inc. | 4.97 | 5.02 |
| Pensionskasse des Kantons Zug | 3.38 | 3.38 |
The Board of Directors approved the consolidated annual financial statements for publication on 3 February 2017. These statements are also subject to approval by the General Meeting of Mobimo Holding AG on 28 March 2017.
No other events took place between 31December 2016 and the approval date of these consolidated financial statements that would require adjustments to the carrying amounts of assets and liabilities of the Group as at 31December 2016 or would require disclosure in this section.
| Location, Address |
Description1 | Built | Realisation period |
Acquired | 31.12.2016 Carrying amount in TCHF |
|---|---|---|---|---|---|
| Brugg, Hauptstrasse3 | open | open | Jul 2016 | 3,688 | |
| Châtel-St. Denis, Chemin de la Chaux3 | open | open | Jul 2016 | 7,039 | |
| Glattbrugg, Schaffhauserstrasse 913 | open | open | Jul 2016 | 8,212 | |
| Lachen, Zürcherstrasse 193 | open | open | Jul 2016 | 2,838 | |
| Langenthal, Kühlhausstrasse 8 | open | open | Sep 2015 | 486 | |
| Martigny, Rue du Léman 243 | open | open | Jul 2016 | 12,781 | |
| Merlischachen, Chappelmatt-Strasse (Burgmatt) | 78 con | open | 2014/2015 | 16,242 | |
| Regensdorf, Watterstrasse3 | open | open | Jul 2016 | 5,733 | |
| Schaffhausen, Fischerhäuserstrasse 613 | open | open | Jul 2016 | 2,091 | |
| Uster, Berchtoldstrasse3 | open | open | Jul 2016 | 8,905 | |
| Weggis, Hertensteinstrasse 105 | open | open | May 2010 | 10,463 | |
| Zurich, Allmendstrasse 92 – 96 (Manegg) | open | open | Mar 2015 | 4,082 | |
| 12 Land entities and development projects |
82,560 | ||||
| Aarau, Site 4 (Torfeld Süd) | 92 con | 2014/2017 | Jun 2001 | 61,009 | |
| Bad Zurzach, Weissensteinweg (Salzturm)3 | 21 con | 2015/2017 | Jul 2016 | 2,449 | |
| Zurich, Albulastrasse 42 | res | 2016/2018 | Apr 2010 | 34,022 | |
| 3 Properties under construction | 97,480 | ||||
| Aarau, Buchserstrasse 27 | com | 1885 | 2017/2018 | Oct 2006 | 695 |
| Allaman, Chemin des Grangettes 22 | open | 1991 | open | Sep 2015 | 24,554 |
| Cham, Brunnmatt 4 – 63 | com | 2010/2012 | Jul 2016 | 41,029 | |
| Lucerne, Büttenenhalde | 24 con | 2014/2016 | Dec 2011 | 4,637 | |
| Meilen, Feldgüetliweg 143/145 | 14 con | 2013/2015 | Nov 2011 | 7,300 | |
| Regensdorf, Im Pfand 2 (Sonnenhof) | 45 con | 2013/2015 | Jun 2007 | 398 | |
| Salenstein, Hauptstrasse3 | 22 con | 2012/2015 | Jul 2016 | 10,810 | |
| St. Erhard, Längmatt | com | 1979 | open | Oct 2012 | 4,814 |
| St. Moritz, Via Maistra 292 | open | 1930 | open | Jul 2010 | 11,814 |
| Zurich, Turbinenstrasse (Mobimo Tower) | 53 con | 2008/2011 | May 2008 | 18,753 | |
| 10 Completed real estate and development properties |
124,804 | ||||
| 25 Trading Properties | 304,844 |
1 Com: commercial; con: condominium; res: residential.
2 Development properties.
3 Acquisition BSS&M.
| of polluted Register sites |
Site area in m2 | tified purchase 31.12.2016 (cer Sales status agreement) |
Sales volumes in TCHF |
Project status 31.12.2016 |
|---|---|---|---|---|
| no | 4,228 | open | open | in planning |
| yes (insignificant) | 21,231 | open | open | in planning |
| no | 2,391 | open | open | in planning |
| no | 969 | open | open | in planning |
| yes (insignificant) | 13,080 | open | open | in planning |
| no | 6,838 | open | open | in planning |
| no | 15,522 | open | open | in planning |
| no | 12,897 | open | open | in planning |
| no | 916 | open | open | in planning |
| no | 4,069 | open | open | in planning |
| no | 3,043 | 0/1 | open | in planning |
| yes (insignificant) | 11,247 | open | open | in planning |
| 96,431 | ||||
| no | 11,105 | 56/92 | 84,610 | construction project |
| no | 2,538 | 16/21 | 11,819 | construction project |
| no | 1,938 | 0/1 | open | construction project |
| 15,581 | 96,429 | |||
| no | 1,155 | 0/1 | open | in planning |
| no | 23,213 | open | open | in planning |
| no | 8,346 | 0/1 | open | for sale |
| no | 7,115 | 20/24 | 30,083 | for sale |
| no | 2,687 | 11/14 | 27,620 | for sale |
| no | 6,106 | 45/45 | 34,259 | for sale |
| no | 6,970 | 12/22 | 22,379 | for sale |
| no | 5,801 | 0/1 | open | for sale |
| no no |
557 | open | open | in planning |
| 1,936 | 50/53 | 168,858 | for sale | |
| 63,886 | 283,199 | |||
| Target rental | Vacancy rate | |||||||
|---|---|---|---|---|---|---|---|---|
| Location, Address |
description1 Property |
renovated | Acquired | Fair value in TCHF |
Gross yield | revenues in TCHF3 |
||
| Built | Year | in %2 | in %4 | |||||
| Aarau, Bahnhofstrasse 102 (Mediapark) | com | 1975 | 1998 | Mar 2004 | 22,760 | 9.2 | 2,090 | 45.8 |
| 1905/1916/ | ||||||||
| Aarau, Industriestrasse 28; | 1929/1943/ | Jun 2001/ | ||||||
| Torfeldstrasse Parkhaus | com | 1954/1974 | Oct 2006 | 27,135 | 6.8 | 1,857 | 0.0 | |
| Aarau, Industriestrasse 20 (Polygon) | com | 2012 | Jun 2001 | 25,200 | 5.0 | 1,263 | 0.0 | |
| Affoltern am Albis, Obstgartenstrasse 9, | ||||||||
| Alte Oberfelderstrasse 27/29 | com/res | 2014 | Aug 2011 | 76,730 | 4.3 | 3,302 | 0.0 | |
| Basle, Lyon-Strasse 40 | com | 1940 | Nov 2015 | 550 | 12.3 | 68 | 0.0 | |
| Brugg, Bahnhofstrasse 11 | com | 2005 | Jun 2006 | 27,250 | 5.6 | 1,516 | 5.1 | |
| Dierikon, Pilatusstrasse 2 | com | 1990 | 2007 | May 2009 | 9,828 | 7.7 | 756 | 11.5 |
| Mar/Dec | ||||||||
| Dübendorf, Sonnentalstrasse 5 | com | 1975 | 2000 | 1999 | 25,100 | 6.9 | 1,732 | 17.6 |
| Dübendorf, Zürichstrasse 98 | com | 1965 | 1983 | Jan 2000 | 20,570 | 7.0 | 1,438 | 4.1 |
| Geneva, Rue des Etuves 16 – 18 | com/res | 1910 | Nov 2015 | 11,600 | 5.2 | 607 | 48.1 | |
| Horgen, Seestrasse 80 | com | 1960 | 2000/2008 | Nov 2005 | 7,500 | 6.9 | 517 | 0.2 |
| Horgen, Seestrasse 82 | cp | 2010/2011 | Nov 2005 | 5,888 | 4.6 | 268 | 7.9 | |
| Kreuzlingen, Lengwilerstrasse 2 | com | 2007 | Apr 2007 | 6,318 | 5.1 | 322 | 0.0 | |
| Kreuzlingen, Leubernstrasse 3; | ||||||||
| Bottighoferstrasse 1 | com | 1983/2003 | 2003 | Nov 2006 | 57,552 | 6.3 | 3,622 | 0.9 |
| Kreuzlingen, Romanshornerstrasse 126 | br | n/a | Nov 2006 | 1,886 | 4.2 | 80 | 0.0 | |
| Kriens, Sternmatt 6 | com | 1986 | 2008 | Feb 2004 | 24,790 | 9.6 | 2,372 | 3.9 |
| Lausanne, Avenue d'Ouchy 4 – 6 (Horizon) | com | 1962 | 2013 | May 2010 | 67,100 | 4.6 | 3,106 | 0.0 |
| Lausanne, Flonplex | br | n/a | Nov 2009 | 4,754 | 4.4 | 210 | 0.0 | |
| Lausanne, Parking du Centre | br | n/a | Nov 2009 | 8,620 | 5.3 | 457 | 0.0 | |
| Lausanne, Place de la Gare 4 | com | 1961 | 2000 | Nov 2009 | 29,630 | 5.1 | 1,502 | 0.0 |
| Lausanne, Place de la Navigation 4 – 6 | com/h | 1895 | 2002 | Nov 2009 | 13,510 | 5.0 | 676 | 0.0 |
| Lausanne, Place de l'Europe 6 | com/h | 1905 | 2012 | Nov 2009 | 6,093 | 5.0 | 303 | 0.0 |
| Lausanne, Place de l'Europe 7 | com | 1905 | 2001 | Nov 2009 | 8,645 | 5.3 | 460 | 25.2 |
| Lausanne, Place de l'Europe 8 | com | 1911 | 1989 | Nov 2009 | 8,644 | 5.0 | 428 | 39.3 |
| Lausanne, Place de l'Europe 9 | com | 1900 | 2002 | Nov 2009 | 24,270 | 5.1 | 1,250 | 0.0 |
| Lausanne, Rue de Genève 2/4/6/8 | com | 1904 | 2002 | Nov 2009 | 23,270 | 5.6 | 1,308 | 0.0 |
| Lausanne, Rue de Genève 7 | com5 | 1932 | 1992/2011 | Nov 2009 | 33,170 | 4.9 | 1,639 | 2.1 |
| Lausanne, Rue de Genève 17 | com | 1884 | 2002 | Nov 2009 | 22,410 | 6.5 | 1,459 | 8.1 |
| Lausanne, Rue de Genève 23 | com | 1915 | 2005 | Nov 2009 | 3,443 | 5.3 | 182 | 0.0 |
| Lausanne, Rue de la Vigie 3 | com | 1964 | Nov 2009 | 6,878 | 8.7 | 597 | 74.2 | |
| Lausanne, Rue de la Vigie 5 | com | 1963 | 1988 | Nov 2009 | 14,510 | 5.9 | 860 | 0.0 |
| Lausanne, Rue des Côtes-de-Montbenon 6 | com | 1921 | 2009 | Nov 2009 | 8,279 | 4.9 | 404 | 14.8 |
| Lausanne, Rue des Côtes-de-Montbenon 8/10 | com | 1946 | 1998 | Nov 2009 | 9,308 | 5.5 | 516 | 0.0 |
| Lausanne, Rue des Côtes-de-Montbenon 12 | com | 1918 | 2004 | Nov 2009 | 3,829 | 8.2 | 314 | 16.9 |
| Lausanne, Rue des Côtes-de-Montbenon 16 | com5 | 1912 | 2007 | Nov 2009 | 5,943 | 5.1 | 304 | 0.0 |
| Lausanne, Rue des Côtes-de-Montbenon 20-24 | con | 2013 | Nov 2009 | 43,690 | 5.0 | 2,177 | 0.0 | |
| Lausanne, Rue des Côtes-de-Montbenon 26 | br | n/a | Nov 2009 | 1,897 | 4.2 | 79 | 0.0 | |
| Lausanne, Rue des Côtes-de-Montbenon 28/30 | br | n/a | Nov 2009 | 2,175 | 3.4 | 74 | 0.0 | |
| Lausanne, Rue du Port-Franc 9 | com | 1927 | 2009 | Nov 2009 | 7,303 | 4.7 | 342 | 0.0 |
| Lausanne, Rue du Port-Franc 11 | com | 2008 | Nov 2009 | 12,730 | 5.8 | 733 | 19.7 | |
| Lausanne, Rue du Port-Franc 17 | com | 2002 | Nov 2009 | 12,950 | 5.6 | 730 | 0.0 | |
| Lausanne, Rue du Port-Franc 22; Rue de la Vigie 1 | com | 2007 | Nov 2009 | 18,650 | 6.4 | 1,187 | 0.2 |
1 br: building right; com: commercial; cp: car park; h: hotel; res: residential.
2 Target rental income as at reporting date 31.12.2016 as % of market value.
3 Including building right interest.
4 Vacancy rate as at reporting date 31.12.2016 as % of target rental income.
5 Share investment property.
| Site area in m2 | Ownership7 | Vacant area in %6 |
Other in %6 |
Residential space in %6 |
Commercial space in %6 |
Sales space in %6 |
Office space in %6 |
Total rentable area in m2 |
|
|---|---|---|---|---|---|---|---|---|---|
| 5,675 | so | 42.5 | 25.2 | 1.4 | 8.6 | 0.0 | 64.8 | 13,484 | |
| yes (insignificant) | 13,727 | so | 0.0 | 0.0 | 0.0 | 100.0 | 0.0 | 0.0 | 24,267 |
| yes (to review) | 3,840 | so | 0.0 | 8.6 | 0.0 | 0.0 | 0.0 | 91.4 | 4,465 |
| 6,455 | so | 0.0 | 7.0 | 93.0 | 0.0 | 0.0 | 0.0 | 10,625 | |
| 1,910 | so | 0.0 | 40.8 | 0.0 | 59.2 | 0.0 | 0.0 | 2,230 | |
| 2,726 | con (773/1000) |
3.2 | 11.7 | 0.0 | 21.1 | 33.8 | 33.4 | 4,023 | |
| 4,397 | so | 11.7 | 8.6 | 0.0 | 15.1 | 15.9 | 60.4 | 4,389 | |
| con | |||||||||
| yes (to review) | 4,368 | (930/1000) | 16.3 | 10.3 | 0.0 | 59.8 | 0.0 | 29.9 | 8,719 |
| yes (petrol station) | 9,809 | so | 3.5 | 25.7 | 1.1 | 26.1 | 17.4 | 29.7 | 9,847 |
| 484 | so | 32.1 | 0.0 | 66.1 | 0.0 | 18.0 | 15.9 | 1,925 | |
| 3,483 | so | 0.0 | 4.8 | 0.0 | 19.0 | 0.0 | 76.2 | 2,151 | |
| 0 | so | 0.0 | 100.0 | 0.0 | 0.0 | 0.0 | 0.0 | 64 | |
| 6,993 | so | 0.0 | 33.5 | 0.0 | 0.0 | 66.5 | 0.0 | 1,348 | |
| 25,530 | so | 1.2 | 1.8 | 0.0 | 0.0 | 89.5 | 8.7 | 17,819 | |
| 2,214 | so | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0 | |
| 14,323 | so | 4.2 | 19.6 | 1.2 | 42.4 | 4.7 | 32.1 | 20,934 | |
| yes (to review) | 12,609 | so | 0.0 | 3.4 | 0.0 | 0.0 | 0.0 | 96.6 | 8,072 |
| yes (insignificant) | 1,953 | so | 0.0 | 100.0 | 0.0 | 0.0 | 0.0 | 0.0 | 1,953 |
| yes (insignificant) | 5,065 | so | 0.0 | 100.0 | 0.0 | 0.0 | 0.0 | 0.0 | 6,526 |
| 630 | so | 0.3 | 31.5 | 0.0 | 0.0 | 0.0 | 68.5 | 4,769 | |
| yes (insignificant) | 2,037 | so | 0.0 | 100.0 | 0.0 | 0.0 | 0.0 | 0.0 | 3,437 |
| yes (insignificant) | 369 | so | 0.0 | 100.0 | 0.0 | 0.0 | 0.0 | 0.0 | 902 |
| yes (insignificant) | 391 | so | 23.0 | 25.3 | 0.0 | 0.0 | 7.9 | 66.8 | 1,440 |
| yes (insignificant) | 1,035 | so | 28.8 | 0.0 | 0.0 | 0.0 | 21.9 | 78.1 | 1,679 |
| yes (insignificant) | 975 | so | 0.0 | 14.3 | 0.0 | 0.0 | 36.2 | 49.5 | 3,512 |
| yes (insignificant) | 2,260 | so | 0.0 | 4.0 | 0.0 | 0.0 | 87.4 | 8.6 | 4,679 |
| yes (insignificant) | 3,343 | so | 1.7 | 40.6 | 20.8 | 0.0 | 26.3 | 12.3 | 5,296 |
| yes (insignificant) | 2,312 | so | 6.5 | 28.8 | 0.0 | 3.1 | 21.9 | 46.2 | 6,981 |
| yes (insignificant) | 2,524 | so | 0.0 | 0.0 | 0.0 | 0.0 | 100.0 | 0.0 | 2,322 |
| yes (to review) | 972 | so | 59.9 | 37.3 | 0.0 | 2.0 | 0.0 | 60.7 | 3,172 |
| yes (to review) | 852 | so | 0.0 | 30.1 | 0.0 | 5.6 | 0.0 | 64.3 | 3,368 |
| yes (insignificant) | 533 | so | 9.1 | 17.8 | 0.0 | 0.0 | 19.7 | 62.5 | 2,193 |
| yes (insignificant) | 587 | so | 0.0 | 23.7 | 0.0 | 0.0 | 0.0 | 76.3 | 2,126 |
| yes (to review) | 499 | so | 16.3 | 55.6 | 0.0 | 0.0 | 0.0 | 44.4 | 935 |
| yes (insignificant) | 850 | so | 0.0 | 8.4 | 29.8 | 0.0 | 0.0 | 61.8 | 943 |
| 2,602 | so | 0.0 | 96.4 | 0.0 | 0.0 | 2.8 | 0.8 | 7,370 | |
| yes (insignificant) | 867 | so | 0.0 | 100.0 | 0.0 | 0.0 | 0.0 | 0.0 | 867 |
| yes (to review) | 1,068 | so | 0.0 | 100.0 | 0.0 | 0.0 | 0.0 | 0.0 | 1,068 |
| yes (insignificant) | 2,733 | so | 0.0 | 57.4 | 0.0 | 0.0 | 21.7 | 20.9 | 1,728 |
| yes (insignificant) | 612 | so | 22.3 | 50.6 | 0.0 | 0.0 | 8.2 | 41.2 | 2,001 |
| yes (insignificant) | 776 | so | 0.0 | 17.2 | 25.0 | 0.0 | 0.0 | 57.8 | 2,132 |
| yes (insignificant) | 1,999 | so | 5.5 | 21.3 | 0.0 | 0.0 | 10.3 | 68.4 | 3,806 |
6 Details as at 31.12.2016 as % of total rentable area.
7 con: condominium; so: sole ownership.
| Location, Address |
description1 Property |
Built | renovated Year |
Acquired | Fair value in TCHF |
Gross yield in %2 |
Target rental revenues in TCHF |
Vacancy rate in %4 |
|---|---|---|---|---|---|---|---|---|
| Lausanne, Voie du Chariot 3 | com | 2008 | Nov 2009 | 15,670 | 5.4 | 845 | 1.1 | |
| Lausanne, Voie du Chariot 4/6 | com | 2008 | Nov 2009 | 31,140 | 5.9 | 1,850 | 0.0 | |
| Lausanne, Voie du Chariot 5/7 | com | 2008 | Nov 2009 | 35,130 | 4.7 | 1,658 | 0.0 | |
| Lucerne, Alpenstrasse 9 | com/res | 1890 | 2001/2010 | Jun 2007 | 13,120 | 4.3 | 566 | 0.0 |
| Neuhausen, Victor-von-Bruns-Strasse 19 | com | 2007 | Mar 2007 | 9,773 | 7.0 | 688 | 33.4 | |
| Regensdorf, Althardstrasse 10 | com | 1982 | Dec 2001 | 20,180 | 9.2 | 1,866 | 23.8 | |
| Renens, Chemin de la Rueyre 116/118 | com | 1989 | Mar 2007 | 11,860 | 7.3 | 865 | 0.2 | |
| St. Gallen, Schochengasse 6 | com | 1974 | 2000 | Feb 2004 | 17,850 | 6.2 | 1,110 | 0.4 |
| St. Gallen, St. Leonhardstrasse 22 | com | 1900 | 2002/2006 | Dec 2004 | 5,857 | 4.6 | 271 | 0.0 |
| St. Gallen, Wassergasse 42/44 | com | 1966 | 2000 | Feb 2004 | 15,520 | 6.4 | 987 | 8.4 |
| St. Gallen, Wassergasse 50/52 | com | 1998 | Feb 2004 | 13,160 | 6.3 | 829 | 0.0 | |
| Winterthur, Industriestrasse 26 | com | 1994 | 2002 | Oct 1999 | 20,140 | 7.5 | 1,506 | 8.0 |
| Zurich, Bahnhofplatz 4 | com | 1881 | 2002/2005 | Jul 2006 | 23,070 | 4.0 | 918 | 0.0 |
| Zurich, Friedaustrasse 17 | com | 1968 | 2013 | Oct 1998 | 14,800 | 4.6 | 678 | 0.8 |
| Zurich, Friesenbergstrasse 75; Im Tiergarten 7 | com | 1976/1992 | 1999 | Feb 2014 | 89,120 | 6.6 | 5,892 | 9.5 |
| Zurich, Hardturmstrasse 3/3a/3b | ||||||||
| (Mobimo-Hochhaus) | com | 1974 | 2001/2008 | Nov 1999 | 62,290 | 5.2 | 3,225 | 0.0 |
| Zurich, Rautistrasse 12 | com | 1972 | 2011 | Nov 1999 | 21,070 | 6.7 | 1,414 | 7.3 |
| Zurich, Stauffacherstrasse 41 | com | 1990 | 2011 | Jun 2000 | 49,500 | 4.8 | 2,395 | 0.0 |
| Zurich, Thurgauerstrasse 23; | 1963/1968/ | |||||||
| Siewerdtstrasse 25 | com | 1985 | 1998 | Mar 2002 | 14,360 | 6.5 | 932 | 0.7 |
| Zurich, Treichlerstrasse 10; Dolderstrasse 16 | com | 1963 | 2007 | May 2014 | 15,160 | 5.9 | 890 | 3.4 |
| Zurich, Turbinenstrasse 18 (Mobimo Tower Hotel) | com/h | 2011 | May 2008 | 122,360 | 5.7 | 6,951 | 0.0 | |
| 63 Commercial investment properties | 1,373,488 | 5.8 | 79,444 | 5.9 | ||||
| Lausanne, Avenue d'Ouchy 4 – 6 | com | 1962 | May 2010 | 60,370 | 5.4 | 3,242 | 19.1 | |
| Lausanne, Rue de Genève 19 | com | 1893 | 2002 | Nov 2009 | 3,541 | 10.9 | 387 | 43.9 |
| Lausanne, Rue de Genève 21 | com | 1902 | Nov 2009 | 3,420 | 10.1 | 344 | 54.4 | |
| Lausanne, Rue des Côtes-de-Montbenon 14 | com | 1963 | Nov 2009 | 1,393 | 2.6 | 36 | 0.0 | |
| Lausanne, Rue du Port-Franc 20; | ||||||||
| Rue de Genève 33 | com | 2007 | Nov 2009 | 38,680 | 7.0 | 2,711 | 27.7 | |
| Regensdorf, Althardstrasse 30 | com | 1976 | Dec 2001 | 13,700 | 12.4 | 1,698 | 83.1 | |
| 6 Development Properties | ||||||||
| (Commercial properties) | 121,104 | 7.0 | 8,418 | 37.3 |
The acquisition costs related to the commercial investment properties amount to TCHF 1,199,237. The acquisition costs related to the development properties (commercial properties) amount to TCHF 142,746.
1 Com: commercial; h: hotel; res: residential.
2 Target rental income as at reporting date 31.12.2016 as % of market value.
4 Vacancy rate as % of target rental income.
| Site area in m2 | Ownership7 | Vacant area in %6 |
Other in %6 |
Residential space in %6 |
Commercial space in %6 |
Sales space in %6 |
Office space in %6 |
Total rentable area in m2 |
|
|---|---|---|---|---|---|---|---|---|---|
| yes (insignificant) | 500 | so | 3.4 | 9.3 | 0.0 | 0.0 | 17.3 | 73.4 | 2,278 |
| yes (insignificant) | 2,614 | so | 0.0 | 2.8 | 0.0 | 0.0 | 64.9 | 32.3 | 5,452 |
| yes (insignificant) | 1,042 | so | 0.0 | 14.0 | 15.6 | 0.0 | 15.5 | 54.9 | 4,947 |
| 569 | so | 0.0 | 9.7 | 64.6 | 0.0 | 13.1 | 12.6 | 1,986 | |
| 1,596 | so | 43.4 | 6.2 | 0.0 | 0.0 | 0.0 | 93.8 | 2,806 | |
| 7,714 | so | 17.4 | 24.7 | 0.0 | 7.5 | 28.6 | 39.2 | 13,531 | |
| 4,503 | so | 0.0 | 31.2 | 0.0 | 0.0 | 0.0 | 68.8 | 4,341 | |
| 1,316 | so | 1.7 | 4.6 | 0.0 | 0.0 | 0.0 | 95.4 | 4,460 | |
| 219 | so | 0.0 | 8.2 | 0.0 | 0.0 | 12.7 | 79.1 | 1,092 | |
| con | |||||||||
| 1,714 | (867/1000) | 9.2 | 10.6 | 9.3 | 0.0 | 0.0 | 80.1 | 3,980 | |
| 1,373 | so | 0.0 | 27.7 | 0.0 | 0.0 | 0.0 | 72.3 | 3,554 | |
| yes (to review) | 3,635 | so | 6.0 | 14.2 | 0.0 | 20.4 | 0.8 | 64.6 | 11,326 |
| 189 | so | 0.0 | 8.7 | 0.0 | 0.0 | 27.8 | 63.5 | 758 | |
| 869 | so | 2.1 | 20.6 | 10.1 | 12.1 | 0.0 | 57.2 | 2,572 | |
| 11,532 | so | 11.0 | 24.8 | 0.0 | 0.0 | 0.0 | 75.2 | 22,823 | |
| yes (petrol station) | 1,975 1,894 |
so so |
0.0 6.4 |
5.6 8.4 |
0.0 1.3 |
0.0 6.6 |
0.0 9.4 |
94.4 74.3 |
8,226 6,012 |
| 1,405 | so | 0.0 | 38.4 | 0.0 | 0.0 | 1.0 | 60.6 | 6,755 | |
| 2,657 | so | 0.0 | 27.2 | 0.0 | 6.9 | 6.8 | 59.1 | 3,901 | |
| 1,139 | so | 11.4 | 25.5 | 7.1 | 33.3 | 0.0 | 34.1 | 2,682 | |
| 5,808 | so | 0.0 | 100.0 | 0.0 | 0.0 | 0.0 | 0.0 | 21,255 | |
| 210,650 | 6.4 | 27.0 | 4.8 | 14.8 | 13.0 | 40.4 | 344,304 | ||
| yes (to review) | 0 | so | 16.7 | 12.9 | 0.0 | 41.1 | 20.5 | 25.5 | 19,114 |
| yes (insignificant) | 2,733 | so | 30.0 | 43.4 | 0.0 | 0.0 | 17.2 | 39.4 | 3,548 |
| yes (insignificant) | 2,524 | so | 30.4 | 43.1 | 0.0 | 0.0 | 16.9 | 40.0 | 3,575 |
| yes (to review) | 647 | so | 0.0 | 0.0 | 0.0 | 0.0 | 100.0 | 0.0 | 640 |
| yes (insignificant) | 2,000 | so | 35.9 | 3.7 | 0.0 | 0.0 | 62.2 | 34.1 | 9,964 |
| 9,355 | so | 89.2 | 29.4 | 2.3 | 14.7 | 0.0 | 53.6 | 12,537 | |
| 17,259 | 40.7 | 19.5 | 0.6 | 19.6 | 24.2 | 36.1 | 49,378 |
6 Details as at reporting date 31.12.2016 as % of total rentable area.
7 con: condominium; so: sole ownership.
| description1 | Target rental | Vacancy rate | ||||||
|---|---|---|---|---|---|---|---|---|
| Location, Address |
Property | renovated | Acquired | Fair value in TCHF |
Gross yield | revenues in TCHF |
||
| Built | Year | in %2 | in %3 | |||||
| Affoltern am Albis, Alte Obfelderstrasse 31 – 35 | res | 2013 | Aug 2011 | 30,420 | 4.0 | 1,217 | 3.0 | |
| Bergdietikon, Baltenschwilerstrasse | ||||||||
| 3/5/7/9/11/13/15/17 | res | 1973/1980 | 1992/2007 | Oct 2007 | 23,987 | 4.1 | 984 | 4.8 |
| Binz, Zürichstrasse 244/246 | res | 1966 | 1997/2001 | Nov 2005 | 12,650 | 4.0 | 503 | 9.5 |
| Carouge, Place d'Armes 8 | res | 1932 | 2014 | Nov 2015 | 9,080 | 5.3 | 478 | 3.8 |
| Carouge, Rue de la Fontenette 13 | res | 1973 | 2014 | Nov 2015 | 6,940 | 5.1 | 356 | 0.3 |
| Geneva, Boulevard Carl-Vogt 6 | res | 1948 | Nov 2015 | 8,650 | 4.6 | 400 | 0.0 | |
| Geneva, Boulevard de la Cluse 18 | res | 1951 | Nov 2015 | 6,090 | 4.7 | 285 | 0.0 | |
| Geneva, Rue Chandieu 5 | res | 1976 | 2005 | Nov 2015 | 12,140 | 4.5 | 550 | 1.8 |
| Geneva, Rue Daubin 35 | res | 1952 | 2012 | Nov 2015 | 7,460 | 4.8 | 358 | 0.5 |
| 2005/2010/ | ||||||||
| Geneva, Rue de la Cannonière 11 | res | 1951 | 2011/2013 | Nov 2015 | 8,190 | 5.0 | 413 | 0.0 |
| 2008/2010/ | ||||||||
| Geneva, Rue de la Ferme 6 | res | 1900 | 2012/2014 | Nov 2015 | 6,750 | 4.8 | 326 | 0.0 |
| Geneva, Rue de la Poterie 34 | res | 1895 | 2012 | Nov 2015 | 3,530 | 5.1 | 181 | 0.0 |
| Geneva, Rue de l'Ecole-de-Médecine 3 | res | 1900 | 2014 | Nov 2015 | 4,110 | 5.0 | 204 | 0.0 |
| Geneva, Rue de Malatrex 30 | res | 1951 | 2012 | Nov 2015 | 8,640 | 5.6 | 482 | 3.7 |
| Geneva, Rue de Vermont 9 | res | 1969 | 2014 | Nov 2015 | 7,860 | 5.3 | 416 | 2.0 |
| Geneva, Rue des Confessions 9 | res | 1923 | 2013 | Nov 2015 | 7,610 | 3.9 | 300 | 0.0 |
| Geneva, Rue des Cordiers 5 | res | 1965 | 2008 | Nov 2015 | 18,130 | 4.6 | 832 | 0.0 |
| Geneva, Rue des Peupliers 13 | res | 1920 | 2010 | Nov 2015 | 2,940 | 5.6 | 166 | 0.0 |
| Geneva, Rue des Photographes 12 | res | 1905 | 2013 | Nov 2015 | 4,350 | 4.9 | 214 | 0.0 |
| Geneva, Rue Dr-Alfred-Vincent 23 | res | 1950 | 2010 | Nov 2015 | 4,060 | 4.7 | 190 | 0.0 |
| Geneva, Rue du 31 Décembre 35 | res | 1956 | 2014 | Nov 2015 | 7,830 | 4.7 | 372 | 0.0 |
| Geneva, Rue du Village Suisse 4 | res | 1900 | 2005 | Nov 2015 | 3,080 | 5.4 | 166 | 0.0 |
| Geneva, Rue Henri-Blanvalet 14 | res | 1915 | 2012 | Nov 2015 | 6,060 | 4.6 | 280 | 0.8 |
| Geneva, Rue Schaub 3 | res | 1960 | 2010 | Nov 2015 | 9,570 | 4.6 | 438 | 0.0 |
| Geneva, Rue Zurlinden 6 | res | 1985 | 2012 | Nov 2015 | 11,260 | 5.0 | 561 | 13.8 |
| Lausanne, Avenue d'Ouchy 70 | res/com | 1906 | 2004 | Nov 2009 | 5,578 | 5.0 | 281 | 0.0 |
| Lausanne, Avenue d'Ouchy 72/74 | res | 1907 | Nov 2009 | 3,119 | 4.7 | 146 | 0.0 | |
| Lausanne, Avenue d'Ouchy 76 | res/com | 1907 | 2004 | Nov 2009 | 16,330 | 4.2 | 686 | 5.8 |
| Lausanne, Avenue Edouard Dapples 9/13/15/15a | res | 1925/1926 | Apr 2013 | 20,470 | 4.7 | 965 | 3.2 | |
| Lausanne, Place de la Navigation 2 | res/com | 1895 | 2004 | Nov 2009 | 6,813 | 4.4 | 297 | 0.0 |
| Lausanne, Rue Beau-Séjour 8 | res | 2011 | Nov 2009 | 100,750 | 4.1 | 4,152 | 0.1 | |
| Nov 2009/ | ||||||||
| Lausanne, Rue des Fontenailles 1 | res | 1910/1963 | 1993 | Apr 2013 | 4,354 | 4.4 | 192 | 9.6 |
| Lausanne, Rue Voltaire 2 – 12 | res | 2015 | Oct 2012 | 70,910 | 4.0 | 2,854 | 0.9 | |
| Meyrin, Rue de Livron 17 – 19 | res | 1967 | 2010 | Nov 2015 | 17,260 | 5.2 | 898 | 1.2 |
| Münchwilen, Buchenacker 22/24/26/28; | ||||||||
| Unterer Buchenacker 7 | res | 1994/1995 | Jun 2007 | 15,277 | 5.0 | 770 | 5.5 | |
| Onex, Avenue des Grandes-Communes 21 – 23 – 25 | res | 1964 | 2012/2014 | Nov 2015 | 38,100 | 4.8 | 1,844 | 1.9 |
| Opfikon-Glattbrugg, Farmanstrasse 47/49 | res | 2009 | Dec 2010 | 28,200 | 3.8 | 1,069 | 4.3 | |
| Regensdorf, Schulstrasse 95/97/99/101/103/105 | res | 2015 | Jun 2007 | 60,000 | 3.9 | 2,360 | 3.9 | |
| Versoix, Chemin de l'Ancien Péage 2 – 4 | res | 1963 | 2014 | Nov 2015 | 20,310 | 5.6 | 1,145 | 0.0 |
| Wängi, Brühlwiesenstrasse | ||||||||
| 11a/11b/15a/15b/19a/19b | res | 1984/1988 | Jun 2007 | 13,422 | 5.4 | 728 | 6.4 | |
| Zurich, Katzenbachstrasse 239 | res | 1969 | Mar 2008 | 6,506 | 4.5 | 295 | 3.7 | |
| Zurich, Letzigraben 134 – 136 | res | 2016 | Sep 2006 | 65,290 | 3.5 | 2,280 | 1.1 | |
| 42 Residential investment properties | 724,076 | 4.4 | 31,633 | 2.2 |
The acquisition costs related to the residential investment properties amount to TCHF 572,878.
¹ Com: commercial; res: residential.
² Target rental income as at reporting date 31.12.2016 as % of market value.
3 Vacancy rate as at reporting date 31.12.2016 as % of target rental income.
| 88,938 | 2.1 | 6.7% | 1,402 | 115 | 455 | 487 | 287 | 58 | 114,844 | |
|---|---|---|---|---|---|---|---|---|---|---|
| so 1,987 so 5,003 |
0.0 0.3 |
0.0% 2.2% |
18 72 |
0 0 |
5 5 |
8 34 |
5 33 |
0 0 |
1,589 6,977 |
|
| so 7,413 |
4.1 | 2.1% | 48 | 0 | 21 | 21 | 6 | 0 | 4,439 | |
| so 722 |
0.0 | 11.7% | 70 | 16 | 34 | 0 | 20 | 0 | 4,495 | |
| so 16,656 |
2.3 | 0.0% | 96 | 0 | 30 | 50 | 16 | 0 | 8,716 | |
| so 3,840 |
3.2 | 0.4% | 39 | 0 | 9 | 16 | 13 | 1 | 3,609 | |
| so 930 |
0.8 | 1.0% | 107 | 0 | 53 | 54 | 0 | 0 | 6,570 | |
| so 5,740 |
5.5 | 4.9% | 44 | 0 | 20 | 20 | 4 | 0 | 4,367 | |
| so 670 |
0.0 | 11.7% | 48 | 12 | 24 | 12 | 0 | 0 | 3,972 | |
| so 4,743 |
0.0 | 0.6% | 92 | 8 | 21 | 41 | 21 | 1 | 8,663 | |
| so 853 |
9.6 | 0.0% | 9 | 4 | 4 | 0 | 0 | 1 | 1,071 | |
| yes (insignificant) | so 3,827 |
1.6 | 3.3% | 101 | 11 | 16 | 55 | 19 | 0 | 10,288 |
| yes (insignificant) | so 1,911 |
0.0 | 0.0% | 8 | 4 | 2 | 0 | 2 | 0 | 1,313 |
| so 5,246 |
2.2 | 2.0% | 48 | 17 | 28 | 2 | 1 | 0 | 4,959 | |
| yes (insignificant) | so 738 |
6.1 | 16.6% | 10 | 9 | 1 | 0 | 0 | 0 | 2,538 |
| yes (insignificant) | es n/a |
0.0 | 0.0% | 12 | 0 | 3 | 3 | 6 | 0 | 995 |
| yes (insignificant) | so 478 |
0.0 | 0.0% | 10 | 4 | 1 | 5 | 0 | 0 | 1,122 |
| so 439 so 437 |
0.0 12.9 |
11.7% 43.6% |
27 15 |
1 0 |
12 8 |
14 4 |
0 3 |
0 0 |
1,857 1,609 |
|
| so 260 |
3.1 | 23.9% | 14 | 4 | 4 | 6 | 0 | 0 | 841 | |
| so 145 |
0.0 | 0.0% | 11 | 1 | 2 | 5 | 3 | 0 | 511 | |
| so 290 |
0.0 | 14.3% | 24 | 0 | 6 | 0 | 18 | 0 | 1,395 | |
| so 234 |
0.0 | 0.0% | 15 | 1 | 6 | 8 | 0 | 0 | 707 | |
| so 188 |
0.0 | 21.1% | 9 | 1 | 1 | 4 | 3 | 0 | 685 | |
| so 1157 so 147 |
7.1 0.0 |
35.7% 0.0% |
27 10 |
3 1 |
22 4 |
2 3 |
0 2 |
0 0 |
2,786 513 |
|
| so 351 |
0.0 | 3.0% | 23 | 0 | 5 | 15 | 3 | 0 | 1,316 | |
| so 426 |
0.0 | 28.6% | 18 | 4 | 5 | 0 | 0 | 9 | 1,153 | |
| so 241 |
3.1 | 32.1% | 30 | 0 | 0 | 0 | 10 | 20 | 1,289 | |
| so 492 |
0.0 | 31.3% | 10 | 0 | 4 | 6 | 0 | 0 | 800 | |
| so 242 |
0.0 | 0.0% | 15 | 0 | 2 | 4 | 7 | 2 | 701 | |
| so 272 |
0.0 | 3.2% | 25 | 0 | 0 | 0 | 4 | 21 | 857 | |
| so 248 |
0.0 | 0.0% | 28 | 0 | 1 | 12 | 14 | 1 | 1,145 | |
| so 624 |
0.0 | 0.0% | 28 | 0 | 7 | 0 | 20 | 1 | 1,043 | |
| so 228 so 315 |
0.0 0.0 |
0.0% 11.7% |
21 26 |
0 2 |
2 12 |
5 12 |
14 0 |
0 0 |
855 2,010 |
|
| so 436 |
0.0 | 46.6% | 18 | 6 | 6 | 6 | 0 | 0 | 2,080 | |
| so 230 |
0.0 | 0.0% | 23 | 6 | 3 | 7 | 6 | 1 | 1,188 | |
| so 250 |
2.4 | 8.4% | 27 | 0 | 0 | 8 | 19 | 0 | 1,308 | |
| so 4,025 |
6.7 | 4.5% | 30 | 0 | 12 | 12 | 6 | 0 | 2,580 | |
| so 11,330 |
5.1 | 6.0% | 54 | 0 | 28 | 18 | 8 | 0 | 5,226 | |
| so 5,174 |
2.5 | 0.8% | 42 | 0 | 26 | 15 | 1 | 0 | 4,706 | |
| Site area in m2 Ownership5 |
Vacant area in % |
Other forms of use in %4 |
apartments Total |
apartments 5 or more room |
apartments – 4 ½- room 4 |
apartments – 3 ½- room 3 |
apartments – 2 ½- room 2 |
apartments – 1 ½- room 1 |
area in m2 rentable Total |
|
4 Details as at reporting date 31.12.2016 as % of total rentable area.
5 ea: easement; so: sole ownership.
| Location, Address |
Description of property1 |
Built | Realisation period |
Acquired | Fair value in TCHF |
|---|---|---|---|---|---|
| Aarau, site 2 (Torfeld Süd) | res/com | 1905/1916/ 1929/1943/ 1954 |
2016/2018 | Oct 2006 | 47,700 |
| Horgen, Seestrasse 93 (Seehallen) | com | 1956 | 2017/2018 | Nov 2005 | 25,800 |
| Kriens, Am Mattenhof 4 | com/res | 2016/2019 | Mar 2005/ Feb 2013 |
8,750 | |
| Mar 2005/ | |||||
| Kriens, Am Mattenhof 6 | res/com | 2016/2019 | Feb 2013 | 1,730 | |
| Mar 2005/ | |||||
| Kriens, Am Mattenhof 8 | com/res | 2016/2019 | Feb 2013 | 4,550 | |
| Mar 2005/ | |||||
| Kriens, Am Mattenhof 12/14 | com/res | 2016/2019 | Feb 2013 | 19,300 | |
| Mar 2005/ | |||||
| Kriens, Am Mattenhof 16 | com/h | 2016/2019 | Feb 2013 | 9,050 | |
| Kriens, Sternmatt 6 - Block C (multi-storey parking) | cp | 1986 | 2015/2016 | Feb 2004 | 14,400 |
| Lausanne, Rue des Côtes-de-Montbenon 1/3/5 | com | 1930 | 2016/2017 | Nov 2009 | 6,000 |
| Rheinfelden, Rütteliweg 8; Spitalhalde 40 | res | 1972 | 2017 | Sep 2006 | 17,750 |
| Zürich, Hohlstrasse 485 | res/com | 1896/1928 | 2016/2018 | Apr 2010 | 73,100 |
| 11 Properties under construction | 228,130 |
| Location, Address |
Description of property1 |
Built | Year renovated | Acquired | Carrying amount in TCHF |
Total rentable Ownership3 area in m2 Site area in m2 |
|---|---|---|---|---|---|---|
| Küsnacht, Seestrasse 59 | com | 2006 | Sep 2002 | 10,089 | 2,046 so 2,125 |
|
| Lausanne, Rue de Genève 7 | com2 | 1932 | 1992/2011 | Nov 2009 | 3,350 | 632 so 3,343 yes (insignificant) |
| Lausanne, Rue des Côtes-de-Montbenon 16 | com2 | 1912 | 2007 | Nov 2009 | 543 | 170 so 850 yes (insignificant) |
| 3 Properties | 13,982 | 2,848 6,318 |
| Location, Address |
Description of property1 |
Built | Year renovated | Acquired | Fair value in TCHF |
|
|---|---|---|---|---|---|---|
| Lausanne, Flonplex | multiplex cinema | 2003 | Nov 2009 | 9,344 | ||
| Lausanne, Parking du Centre | cp | 2002 | Nov 2009 | 31,350 | ||
| 2 Co-ownership properties | 40,694 |
¹ com: commercial; cp: car park; h: hotel; res: residential.
2 Share own-use.
| polluted sites Register of |
Site area in m2 |
Ownership3 | Total rentable area in m2 |
|---|---|---|---|
| yes (insignificant) | 18,526 | so | 19,205 |
| yes | 10,542 | so | 14,485 |
| no | 3,130 | so | 7,324 |
| no | 1,840 | so | 2,687 |
| no | 2,080 | so | 4,654 |
| no | 5,189 | so | 13,284 |
| no | 3,554 | so | 8,761 |
| no | 5,028 | so | 215 |
| yes (to review) | 1,830 | so | 2,042 |
| no | 14,817 | so | 5,588 |
| no | 8,328 | so | 15,590 |
| 74,863 | 93,835 |
| polluted sites Register of |
Site area in m2 |
Ownership3 | Total rentable area in m2 |
|---|---|---|---|
| no | 2,125 | so | 2,046 |
| yes (insignificant) | 3,343 | so | 632 |
| yes (insignificant) | 850 | so | 170 |
| 6,318 | 2,848 | ||
| Year renovated Description of Total rentable property1 Fair value Acquired in TCHF Built |
area in m2 | Ownership | Site area in m2 |
polluted sites Register of |
|---|---|---|---|---|
| multiplex cinema 2003 Nov 2009 9,344 5,256 |
co-ownership 40% | 0 | yes (insignificant) | |
| cp 2002 Nov 2009 31,350 |
0 | co-ownership 50% | 0 | yes (insignificant) |
| 40,694 5,256 |
3 so: sole ownership.
Report of the statutory auditor on the consolidated annual financial statements
To the General Meeting of Mobimo Holding AG, Lucerne
We have audited the consolidated financial statements of Mobimo Holding AG and its subsidiaries (the Group), which comprise the consolidated balance sheet as at 31 December 2016 and the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of cash flows and the consolidated statement of changes in equity for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion the consolidated financial statements (pages 54 to 115) give a true and fair view of the consolidated financial position of the Group as at 31 December 2016, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) and comply with Article 17 of the Directive on Financial Reporting (Directive Financial Reporting, DFR) of SIX Swiss Exchange and with Swiss law.
We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISAs) and Swiss Auditing Standards. Our responsibilities under these provisions and standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, as well as the IESBA Code of Ethics for Professional Accountants, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters Valuation of investment properties Valuation of trading properties Completeness and accuracy of deferred tax liabilities
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Investment properties in the amount of TCHF 2'446'798 constitute a material component of the balance sheet. As at 31 December 2016, these had the following fair values (in TCHF):
| Commercial properties | 1'373'488 |
|---|---|
| Residential properties | 724'076 |
Development properties 121'104 Investment properties under construction 228'130
Investment properties are measured at fair value as of reporting date.
The annual valuation of investment properties is carried out by external valuation experts. The fair value estimated using a discounted cash flow model is materially influenced by management assumptions and estimates regarding expected future cash flows and the discount rate applied to each property based on its specific opportunities and risks.
Furthermore, due to the current negative interest rate environment, it can be observed that institutional investors are in some cases buying residential properties at good locations offering very low yields because little else is available. This unforeseeable investor behavior could result in some properties realizing sales prices that deviate from the most recent estimates of fair value
Our audit included an assessment of the competence and independence of the external valuation experts. We attended the valuation meetings with the external valuation experts to discuss the valuation methodology and selected parameters relevant to the valuation. We used our own real estate valuation specialists to support our procedures.
Based on a sample selected according to qualitative and quantitative factors, our audit procedures included the following:
For further information on the valuation of investment properties, refer to note 5 to the consolidated financial statements on pages 67 to 72 and the reports of the independent valuation experts Wüest Partner AG and Jones Lang Lasalle AG on pages 122 to 124 and pages 127 to 128.
Valuation of trading properties
Trading properties in the amount of TCHF 304'844 constitute a material component of the balance sheet and as at 31 December 2016 had the following carrying amounts (in TCHF):
Trading properties include development properties and newly built properties where Mobimo assumes the realization of residential property with subsequent sale. Trading properties are valued at the lower of cost or market value. With regard to loss-making properties, provisions are created immediately for the final loss.
Trading properties also include projects that Mobimo has acquired for the business area Development for Third Parties and that it intends or has agreed to sell to third-party investors in the future or other properties held for resale.
The valuation of trading properties is influenced by assumptions and estimates regarding construction costs to be incurred, and future market developments
Based on a sample selected according to qualitative and quantitative factors, our audit procedures included the following:
For further information on the valuation of trading properties, refer to note 8 to the consolidated financial statements on page 75.
Completeness and accuracy of deferred tax liabilities
As at 31 December 2016, deferred tax liabilities amounted to TCHF 158'440.
Deferred taxes are recognized for temporary differences between the respective tax bases and the carrying amounts in the consolidated balance sheet. The measurement of deferred taxes takes account of the point in time when, and the manner in which, the asset or liability is expected to be realized or settled. The tax rates used are those that are enacted or substantially enacted at the reporting date. Deferred taxes result primarily from measurement differences between the fair values of investment properties and their values for tax purposes.
When calculating deferred tax liabilities, assumptions and estimates must be made regarding the investment costs relevant for tax purposes and the fair values of the properties, and the tax rates applicable at the time the difference is realized. If properties are held for long periods, the investment costs relevant for tax purposes may be determined using an alternative measure instead of the actual investment costs, depending on the respective cantonal rules (e.g. fair value 20 years ago for Zurich properties). Moreover, in cantons with a separate property gains tax, the residual holding period of the properties has to be estimated based on Mobimo's strategy.
In the course of our audit, we critically assessed the calculation of deferred taxes on investment properties with the support of our tax specialists.
Based on the overall portfolio, our audit procedures included the following:
Based on a sample selected according to qualitative and quantitative factors, our procedures also included the following:
For further information on deferred tax liabilities, refer to note 20 to the consolidated financial statements on pages 91 to 93.
The Board of Directors is responsible for the other information in the annual report. The other information comprises all information included in the annual report, but does not include the consolidated financial statements, the stand-alone financial statements of the Company, the remuneration report and our auditor's reports thereon.
Our opinion on the consolidated financial statements does not cover the other information in the annual report and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information in the annual report and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
The Board of Directors is responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance with IFRS, Article 17 of the Directive on Financial Reporting (Directive Financial Reporting, DFR) of SIX Swiss Exchange and the provisions of Swiss law, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law, ISAs and Swiss Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Swiss law, ISAs and Swiss Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made.
Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors or its relevant committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report, unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
In accordance with article 728a para. 1 item 3 CO and the Swiss Auditing Standard 890, we confirm that an internal control system exists, which has been designed for the preparation of consolidated financial statements according to the instructions of the Board of Directors.
We recommend that the consolidated financial statements submitted to you be approved.
KPMG AG
Kurt Stocker Reto Kaufmann Licensed Audit Expert Auditor in Charge
Lucerne, 7 February 2017
KPMG AG, Pilatusstrasse 41, PO Box, CH-6003 Lucerne
Licensed Audit Expert
KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss legal entity. All rights reserved.
Wüest Partner AG (Wüest Partner) was commissioned by the Executive Board of Mobimo Holding AG (Mobimo) to perform a valuation, for accounting purposes, of the properties and property units held by Mobimo as at 31 December 2016 (reporting date). The valuation encompasses all investment properties (including development properties and investment properties under construction) except the properties held by CC Management SA and the trading properties (development and sale of condominium ownership).
Wüest Partner hereby confirms that the valuations were performed in accordance with national and international standards and guidelines in particular with the International Valuation Standards (IVS and RICS/Red Book) and the Swiss Valuation Standards (SVS) and as well as in accordance with the requirements of the SIX Swiss Exchange.
The market values determined for the investment properties conform to the concept of the fair value as defined in the International Financial Reporting Stand-ards (IFRS) on the basis of revised IAS 40 (Investment Property) and IFRS 13 (Fair Value Measurement).
Fair value is the price that independent market operators would receive as at the date of valuation if an asset were sold under normal market conditions or the price that such operators would pay if a liability (debt) were transferred under normal market conditions (exit price).
An exit price is the selling price postulated in the purchase contract upon which the parties have jointly agreed. Transaction costs, which normally consist of estate agents' commission, transaction taxes and land registry and notary fees, are not taken into account when determining fair value. This means that in line with paragraph 25 IFRS 13, fair value is not adjusted by the amount of the transaction costs incurred by the purchaser in the event of a sale (gross fair value). This is in line with Swiss valuation practice.
Valuation at fair value assumes that the hypothetical transaction involving the asset to be valued takes place on the market with the largest volume and the most business activity (main market) and that the frequency and volume of transactions are adequate for there to be sufficient price information available for the market (active market). If no such market can be identified, it will be assumed that the asset is being sold on the main market, which would maximise the assets selling price on disposal.
Fair value is calculated on the basis of the best possible use of a property (highest and best use). The best possible use of a property is that which maximises its value. This assumption presupposes a use, which is technically and physically possible, legally permitted and financially realisable. As fair value is calculated on the basis of maximisation of use, the best possible use may differ from the actual or planned use. In the assessment of fair value, future investment spending for the purpose of improving a property or increasing its value will be taken into account accordingly.
The use of the highest and best use approach is based on the principle of the materiality of the possible difference in value in terms of the ratio of the value of the specific property to the total real estate assets and in terms of the possible absolute difference in value. A property's potential added value within the usual estimating tolerance of a specific valuation is regarded as immaterial in this context and is therefore disregarded.
Fair value is determined according to the quality and reliability of the valuation parameters, in order of diminishing quality/reliability: Level 1 market price, Level 2 modified market price and Level 3 modelbased valuation. At the same time, when a property is valued on the basis of fair value, different parameters may be applied to different hierarchies. In this context, the total valuation is classed according to the lowest level of the fair value hierarchy in which the material valuation parameters are found.
The value of the properties of Mobimo is determined using a modelbased valuation according to Level 3 on the basis of input parameters, which cannot be directly observed on the market. Here too, adjusted Level 2 input parameters are used (e.g. market rents, operating/maintenance costs, discounting/capitalisation rates, proceeds of sales of residential property). Non-observable input factors are only used where relevant observable input factors are not available.
The valuation approaches used are those that are appropriate under the given circumstances and for which sufficient data are available to determine fair value. At the same time, the use of relevant observable input factors is maximised, while the use of non-observable input factors is minimised. In the case of the present valuation procedure, an income-based approach is applied, using discounted cash flow valuations, which are widespread in Switzerland.
Market rents, vacancy levels and discount rates are defined as significant input factors. For properties that are valued based on sales in condominium ownership (according to the highest and best use approach), sales prices are defined as a significant input factor. The above mentioned factors are influenced to a varying degree by market developments. If the input factors change, the property's fair value also changes. For each input factor, these changes are simulated on the basis of static sensitivity analyses. Owing to interdependence between the input factors, their effects on fair value may either offset or potentiate each other. For example, the effect of reduced market rents combined with higher vacancies and higher discount rates will have a cumulative negative impact on fair value. However, as the portfolio is diversified geographically and by properties, changes to input factors seldom exert a cumulative effect in the short term.
The economic environment may be regarded as the most relevant factor influencing the input factors. When negative economic sentiment exerts downward pressure on market rents, real estate vacancies usually increase. But at the same time, such market situations are usually associated with favourable (i.e. low) interest rates, which have a positive effect on discount rates. To an extent, therefore, changes to input factors offset each other. Ongoing measures to optimise the Mobimo portfolio (e.g. the conclusion or renewal of long-term rental contracts, investments in the fit-out of rental areas etc.) counter such short-term market shocks, which primarily impact on market rents and vacancy levels. As already mentioned, the individual, risk-adjusted discount rate for a property reflects the yield expectations of the respective investors/market actors; the property owner can exert only a limited influence.
In valuing Mobimo's real estate holdings, Wüest Partner applied the discounted cash flow (DCF) method, by which the market value of a property is determined as the total of all projected future (100 years) net earnings discounted to the date of valuation. Net income is discounted separately for each property with due allowance for specific opportunities and threats, and adjustment in line with market conditions and risks.
Wüest Partner is familiar with all the properties, having carried out inspections and examined the documentation provided. The properties have been analysed in detail in terms of their quality and risk profiles (attractiveness and lettability of rented premises, construction type and condition, micro- and macro-location etc.). Currently vacant premises are valued with allowance made for a reasonable marketing period.
Wüest Partner inspects the properties at least once every three years as well as following purchase and upon completion of larger refurbishment and investment projects.
Within the review period from 1 January 2016 to 31 December 2016, Wüest Partner visited 34 properties belonging to Mobimo.
A total of 95 investment properties (including development properties and investment properties under construction) were valued as at 31 December 2016 by Wüest Partner. The fair value of all 95 investment properties is estimated as at 31 December 2016 at CHF 2,194.6 million.
Within the review period from 1 January 2016 to 31 December 2016, the properties "Manessestrasse 190/192; Staffelstrasse 1/3/5, Zürich", "Katzenbachstrasse 221 – 231, Zürich" and "Teufenerstrasse 15, St. Gallen" were sold.
In the same period, the property "Letzigraben 134 – 136, Zürich" was reclassified from the investment properties under construction to the residential investment properties.
In addition, house number 10 was hived off the property "Hohlstrasse 485, Zürich" and reclassified from the investment properties under construction to the trading properties.
The properties "Rue des Côtes-de-Montbenon 1/3/5, Lausanne" and "Am Mattenhof 4, 6, 8, 12/14, 16, Kriens" (former "Mattenhof I, Kriens") were reclassified from the development properties to the investment properties under construction. Additionally, the residential investment property "Rütteliweg 8; Spitalhalde 40, Rheinfelden" was transferred to the investment properties under construction.
Wüest Partner performed the valuation of Mobimo's real estate holdings independently and neutrally in conformity with its business policies. It was carried out solely for those purposes specified above; Wüest Partner shall accept no liability in respect of third parties.
The fee of the valuer's services is independent of the valuation results. The rate is based upon the numbers of the valuations performed and the lettable area of the property.
Wüest Partner AG Zurich, 1 February 2017
Patrik Schmid MRICS Fabio Guerra MRICS Partner Director
With regard to the significant input factors, the following ranges for the discount rates, achievable long-term market rents and structural vacancy rates were applied to the property valuations:
| Asset class/Valuation method | Fair value | Input factors | Unit | Minimum | Weighted average |
Maximum |
|---|---|---|---|---|---|---|
| Commercial | ||||||
| investment properties | ||||||
| Level 3 | 1,361,338,000 | Discount rates (real) | % | 2.80 | 3.96 | 4.90 |
| Achievable long-term | ||||||
| DCF | market rents | CHF/m² p.a. | 87 | 235 | 1,112 | |
| Structural vacancy rates | % | 2.6 | 5.0 | 11.0 | ||
| Development properties | ||||||
| Level 3 | 121,104,000 | Discount rates (real) | % | 4.10 | 4.58 | 5.60 |
| Achievable long-term | ||||||
| DCF | market rents | CHF/m² p.a. | 138 | 222 | 268 | |
| Structural vacancy rates | % | 3.3 | 5.7 | 12.3 | ||
| Residential investment properties |
||||||
| Level 3 | 484,076,000 | Discount rates (real) | % | 2.60 | 3.10 | 3.80 |
| Achievable long-term | ||||||
| DCF | market rents | CHF/m² p.a. | 160 | 296 | 404 | |
| Structural vacancy rates | % | 0.6 | 2.1 | 8.0 | ||
| Investment properties under construction |
||||||
| Level 3 | 228,130,000 | Discount rates (real) | % | 3.20 | 3.71 | 4.40 |
| Achievable long-term | ||||||
| DCF | market rents | CHF/m² p.a. | 193 | 265 | 322 | |
| Structural vacancy rates | % | 2.2 | 3.8 | 10.0 |
For the two properties that are valued based on sales in condominium ownership (according to the highest and best use approach), sales prices ranging between CHF 6,600 and CHF 7,810 per square meter were applied.
The investment properties of CC Management SA have been valued on behalf of the owner for the purpose of its financial statement by Jones Lang LaSalle AG as at the market value on 31 December 2016. This concerns a total of 27 investment properties.
Jones Lang LaSalle AG confirms that the valuations were carried out within the framework of common national and international standards and guidelines, in particular in accordance with the International Valuation Standards (IVS, RICS / Red Book), and the Swiss Valuation Standards (SVS).
The market values determined for the investment properties represent the "Fair Value" as defined in the "International Financial Reporting Standards" (IFRS) on the basis of revised IAS 40 (Investment Property) and IFRS 13 (Fair Value Measurement).
The "Fair Value" is the price that would be received to sell an asset or paid to transfer a liability (debt) in an orderly transaction between market participants at the measurement date.
An exit price is the selling price as stated in the purchase contract on which the parties have agreed.
Transaction costs, typically consisting of brokerage commissions, transaction taxes and land registration and notary fees, are not taken into account in the Fair Value. The Fair Value is therefore in accordance with clause 25 IFRS 13 not corrected by the purchaser transaction costs incurred in a sale (Gross Fair Value). This corresponds to the Swiss valuation practice.
The Fair Value valuation assumes that the hypothetical transaction for the asset being valued takes place on the market with the greatest volume and the largest business activity (principal market), as well as that transactions of sufficient frequency and volume occur so that sufficient pricing information is available for the market (active market). If such a market cannot be identified, a market for the asset is assumed to maximise the selling price.
The Fair Value is determined on the basis of the best possible use of a property (highest and best use). The best use is the use that maximises the property's value. This assumption of use must be technically/physically possible, legally permissible and financially feasible. As a maximisation of utility is assumed in the determination of Fair Value, the best use may differ from the actual or planned use. Future capital expenditures that will improve or increase the value of a property are taken into account appropriately in the Fair Value Measurement.
The application of the highest and best use approach is based on the principle of materiality of the potential difference in value in relation to the value of the individual property and of the total real estate assets, as well as in relation to the possible absolute value difference. Potential increased real estate values that lie within the usual valuation tolerance of a single valuation are considered to be insignificant and neglected as a result.
The determination of Fair Value is dependent on the quality and reliability of measurement parameters, with decreasing quality and reliability: Level 1 market price, level 2 modified market price and level 3 model-based valuation. For a Fair Value appraisal of a property, different levels for different application parameters can be applied simultaneously. The entire valuation is classified according to the lowest level of the Fair Value hierarchy, which contains the main valuation parameters.
The investment properties of the CC Management SA are valued with a model-based valuation in accordance with level 3, on the basis of input parameters not directly observable on the market. Based on this level, adapted level 2 input parameters are used (e.g. market rents, operational and maintenance costs, discount/capitalisation rates). Non-observable inputs are only used when relevant observable inputs are not available.
The methodologies applied are appropriate in every circumstance and chosen in function of data availability, whereby the use of relevant observable inputs is maximised and the use of the unobservable inputs is minimised. In the present valuations, an income-based approach with the Discounted Cash Flow method that is common in Switzerland is applied.
Jones Lang LaSalle AG valued the investment properties of CC Management SA with the Discounted Cash Flow method (DCF method). It determines the yield potential of a property on the basis of future revenues and expenditures. The resulting cash flows correspond to the current as well as the projected net cash flows after deduction of all costs not recoverable from the tenant (before taxes and borrowing costs). The annual cash flows are discounted to the valuation date. The discount rate used is based on the interest rate on long-term, risk-free investments, such as a 10-year federal bond and a specific risk premium. This takes into account market risks and the associated higher illiquidity of a property compared to a federal bond. The discount rates vary according to the macro and micro situation and property segment.
The market value determination of properties that are completely or partially vacant takes place on the assumption that their reletting will take a certain amount of time. Rent losses, rent-free periods and other incentives for new tenants, which correspond to market standards at the date of valuation, are taken into account in the assessment.
All properties are known to Jones Lang LaSalle AG due to the inspections carried out and the documents provided. Jones Lang LaSalle AG conducted an analysis in terms of quality and risks (attractiveness and lettability of the rented premises, construction and condition, micro and macro location).
All properties were visited by Jones Lang LaSalle AG in January 2015.
Taking into account the above statements, as at 31 December 2016 Jones Lang LaSalle AG assessed the market value of the 27 appraised investment properties, which are owned by CC Management SA, as follows:
| Total investment properties | CHF 252,150,000 |
|---|---|
The valuation result in words: Two hundred fifty-two million hundred fifty thousand Swiss francs.
In accordance with the business policy of Jones Lang LaSalle AG, the valuation of the properties of CC Management SA was conducted independently and neutrally. It serves only the purpose previously mentioned. Jones Lang LaSalle AG assumes no liability to third parties.
The remuneration for the valuation services is independent of the valuation result and is based on consistent fee rates per property.
Jones Lang LaSalle AG Zurich, 1 February 2017
Jan P. Eckert Brigitte Luginbühl CEO Switzerland Senior Associate dipl. Auditor M.A. UZH, MRICS Economics
Property economist (ebs) Business Administration &
Jones Lang LaSalle AG's DCF model is two-phased model and determines the market value of the properties based on future cash flows. Based on a forecast of future revenue and expenditure over a detailed analysis period of ten years, the potential annual target rental income is identified and reduced by costs not communicable to the tenant. The resulting cash flows thus correspond to the projected net cash flows after deduction of all costs not recoverable from the tenants, however before financing and taxes. At the end of the detailed analysis period, a residual value (exit value) is determined on the basis of a perpetual annuity from the exit cash flow, as well as taking into account the future repair works incumbent on the owner. The market value is the sum of the net cash flows discounted at the valuation date over the detailed analysis period and the discounted residual value.
The discount rate used for the valuation is based on the interest rate on long-term, risk-free investments, such as of a 10-year federal bond increased by a specific risk premium, which takes into consideration the current situation in the transaction market in addition to usage, location and size of the property. This risk premium thus takes into account market risks and the associated higher illiquidity of a property compared to a federal bond. The yield difference (spread) between a federal bond and a property investment is regularly verified by Jones Lang LaSalle AG on the basis of property transactions.
The nominal discount and real capitalisation rates are differentiated according to property with regard to macro and micro situation as well as property segments. The average capital weighted nominal discount rate as at 31 December 2016 for the residential properties is 4.05%, for the commercial properties 4.30% and for all properties 4.06%. The average capital weighted real capitalisation rate as at 31 December 2016 is for the residential properties 3.55%, for the commercial properties 3.80% and for all properties 3.56%.
The valuations are based on the rental income at the valuation date of 31 December 2016. Starting from the current contractual rent, the annual target rental income as well as the time for its realisation is estimated. This assumption takes into consideration possible temporary rental controls due to the "LTDR" as well as the risk of contestation of higher rental levels by new tenants, without specifically modelling these. In the case of expiring commercial leases, sustainable market rents as assessed from today's point of view are applied. The market rents are based on the rental price databases and the property research of Jones Lang LaSalle AG. Usually the lower of market rent and contract rent is used for tenant-side lease renewal options.
Rents for office and commercial spaces are normally linked to the national consumer price index (CPI), while leases for apartments are linked to the change in the reference interest rate calculated quarterly by the National Bank, which still includes an inflation factor. Based on the forecasts of the relevant economic research agencies (KOF, BAK, SECO) for the development of the CPI and mortgage interest rates, estimates are regularly made by Jones Lang LaSalle AG for the future indexing of the contractual rent, whereby for all valuations that are made on the same valuation date, the same assumptions are used respectively.
For the valuations on the valuation date, Jones Lang LaSalle AG assumed an annual increase of 0.50% in the first 10 years both in the business as well as the apartment rents. The contractually agreed percentage rates are taken into account in the valuations for each rental unit. The future rental income is linked 100% to the estimated inflation rate in cases of lack of information. The same growth rates are generally used for the future development of the market rents assessed from today's point of view as sustainable.
For expiring leases of retail and office spaces, a property and segment specific vacancy is applied. This absorption time (vacancy in months after contract end) is specifically determined for each property and usually lies between three and nine months. In special cases also longer or shorter re-letting scenarios are applied. The general vacancy risk is taken into consideration with a structural vacancy rate, which is likewise applied specifically to the property.
In the case of residential properties, no specific vacancies are usually applied, since the leases are usually open-ended. The normal tenant fluctuation is taken into account with the help of structural vacancies, which are applied specifically to the property.
The property operating costs are based in principle on the respective property accounts. The non-recoverable costs concern operating and maintenance costs, which cannot be passed on to the tenant due to the contractual conditions or running costs, which are to be borne by the owner due to vacancy. All the future running costs are modelled on the basis of the analysis of the historical figures and benchmarks by Jones Lang LaSalle.
In addition to the rental income, the future repair costs are assessed. The investments considered during the DCF analysis period of 10 years are based in part on the projections of the landlord or the property management.
The capital expenditures necessary on a long-term basis for the determination of the exit value are calculated specifically to the property on the assumption that, depending upon building method and use of the property, various parts of the building exhibit limited life spans and therefore must be renewed cyclically. In the exit year, the amount converted into a capital expenditure fund considers the costs for the ongoing renovations of the property, which secure on a long-term basis the contractual and market rents on which the valuation is based.
| TCHF Note |
2016 | 2015 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash | 41,781 | 51,005 |
| Other current receivables – third parties | 13 | 25 |
| Other current receivables – participations | 9,082 | 16,043 |
| Accrued income and prepaid expenses – third parties | 70 | 62 |
| Total current assets | 50,946 | 67,135 |
| Non-current assets | ||
| Financial assets | ||
| • Loan – participations | 801,044 | 798,280 |
| Participations 2 |
357,469 | 339,757 |
| Total non-current assets | 1,158,513 | 1,138,037 |
| Total assets | 1,209,459 | 1,205,171 |
| TCHF Note |
2016 | 2015 |
|---|---|---|
| Equity and liabilities | ||
| Liabilities | ||
| Current liabilities | ||
| Trade payables – third parties | 205 | 60 |
| Other current liabilities – third parties | 1,182 | 1,465 |
| Other current liabilities – participations | 55 | 105 |
| Accrued expenses and deferred income – third parties | 9,556 | 4,838 |
| Accrued expenses and deferred income – governing bodies | 68 | 83 |
| Total current liabilities | 11,066 | 6,550 |
| Non-current liabilities | ||
| Bonds 3 |
515,000 | 515,000 |
| Total non-current liabilities | 515,000 | 515,000 |
| Total liabilities | 526,066 | 521,550 |
| Equity 4 |
||
| Share capital | 180,327 | 180,327 |
| Statutory capital reserves | ||
| • Capital contribution reserve | 89,690 | 151,843 |
| Statutory retained earnings | ||
| • General legal reserves | 45,795 | 45,795 |
| Voluntary retained earnings | ||
| Retained earnings | ||
| • Profit carried forward | 305,919 | 264,830 |
| • Profit for the year | 62,109 | 41,089 |
| Treasury shares | –446 | –262 |
| Total equity | 683,393 | 683,622 |
| Total equity and liabilities | 1,209,459 | 1,205,171 |
| TCHF Note |
2016 | 2015 |
|---|---|---|
| Income from participations | 58,000 | 31,513 |
| Income from cost charges – participations | 2,157 | 1,934 |
| Financial income – participations | 14,296 | 20,348 |
| Financial income – third parties | 53 | 37 |
| Total income | 74,506 | 53,832 |
| Personnel expenses 5 |
–1,302 | –1,305 |
| Administrative expenses – third parties | –2,058 | –1,691 |
| Interest expense for bonds | –8,573 | –8,573 |
| Other financial expense – third parties | –34 | –25 |
| Direct taxes | –431 | –1,150 |
| Total expenses | –12,397 | –12,743 |
| Profit for the year | 62,109 | 41,089 |
The annual financial statements of Mobimo Holding AG, with its registered office in Lucerne, were prepared in accordance with the provisions of Swiss accounting and financial reporting law (title 32 of the Swiss Code of Obligations). The main valuation principles used that are not prescribed by law are listed at the beginning of the relevant note.
The consolidated annual financial statements of Mobimo Holding AG are prepared in accordance with International Financial Reporting Standards (IFRS). These annual financial statements therefore do not contain any additional disclosures, a cash flow statement or management commentary.
All amounts are shown in thousands of Swiss francs (TCHF), unless stated otherwise. The sums and totals of the individual positions may be larger or smaller than 100% due to rounding.
| Name | Registered office | Share capital 2016 in TCHF |
Equity interest in % |
Share capital 2015 in TCHF |
Equity interest in % |
|---|---|---|---|---|---|
| Directly held participations | |||||
| Mobimo AG | Küsnacht | 72,000 | 100.0 | 72,000 | 100.0 |
| Mobimo Management AG | Küsnacht | 100 | 100.0 | 100 | 100.0 |
| FM Service & Dienstleistungs AG1 | Küsnacht | 100 | 100.0 | 100 | 50.0 |
| LO Holding Lausanne-Ouchy SA | Lausanne | 12,000 | 100.0 | 12,000 | 100.0 |
| Immobilien Invest Holding AG | Glarus | 150 | 75.3 | 150 | 75.3 |
| BSS&M Real Estate AG2 | Küsnacht | 500 | 66.0 | n/a | n/a |
| Indirectly held participations | |||||
| LO Immeubles SA | Lausanne | 2,000 | 100.0 | 2,000 | 100.0 |
| ProviHold SA3 | Lausanne | n/a | n/a | 100 | 100.0 |
| Promisa SA | Lausanne | 100 | 100.0 | 100 | 100.0 |
| Dual Real Estate Investment SA4 | Fribourg | n/a | n/a | 36,660 | 99.5 |
| CC Management SA4 | Geneva | 4,700 | 100.0 | 4,700 | 99.5 |
| O4Real SA | Lausanne | 1,000 | 100.0 | 1,000 | 100.0 |
| Petit Mont-Riond SA | Lausanne | 50 | 75.3 | 50 | 75.3 |
| Parking du Centre SA | Lausanne | 6,000 | 50.0 | 6,000 | 50.0 |
| Flonplex SA | Lausanne | 2,000 | 40.0 | 2,000 | 40.0 |
| Zentrum Oberhof AG2 | Inwil | 100 | 26.4 | n/a | n/a |
| Parking Saint-François SA5 | Lausanne | 1,150 | 26.5 | 1,150 | 26.5 |
1 In the year under review, the remaining 50% shares in FM Service & Dienstleistungs AG, Küsnacht were acquired.
In the year under review, 66% of the shares in BSS&M Real Estate AG, Küsnacht were acquired. BSS&M Real Estate AG, Küsnacht holds 40% of Zentrum Oberhof AG, Inwil. The indirect investment in Zentrum Oberhof AG, Inwil thus totals 26.4%, and the share of voting rights 40%.
3 As part of restructuring of the companies covered under the scope of consolidation, the company ProviHold SA, Lausanne was merged into LO Immeubles SA, Lausanne in the year under review.
4 Additional investments were acquired in Dual Real Estate Investment SA, Fribourg by LO Holding Lausanne-Ouchy SA, Lausanne in the year under review. As a consequence, as part of restructuring of the companies covered under the scope of consolidation, the company Dual Real Estate Investment SA, Fribourg was merged via a squeeze-out into LO Holding Lausanne-Ouchy SA, Lausanne. The remaining outstanding shares were also acquired in the process, with the indirect investment in CC Management SA, Geneva a wholly owned subsidiary of Dual Real Estate Investment SA, Fribourg also being increased to 100%.
The share of voting rights is 5%.
Further information on the Group companies can be found in Note 34 to the consolidated annual statements.
Bonds are recognised in the balance sheet at nominal value. Issuance costs upon issue are offset against any applicable discounts and the surplus is charged to the income statement.
A CHF 165 million bond maturing on 29 October 2018 was issued on 29 October 2013. The coupon is 1.5%.
A CHF 200 million bond maturing on 19 May 2021 was issued on 19 May 2014. The coupon is 1.625%.
A CHF 150 million bond maturing on 16 September 2024 was issued on 16 September 2014. The coupon is 1.875%.
Treasury shares are recognised in the balance sheet at the date of acquisition and at cost as a minus item in equity. The FIFO (first-in, first-out) principle is applied for determining the carrying amount in the event of a later resale.
As at 31 December 2016, share capital amounted to CHF 180.3 million and was composed of 6,218,170 registered shares with a nominal value of CHF 29.00 each. All outstanding shares are entitled to dividends and confer the right to one vote per share at the company's general meetings.
There was no change in share capital in the year under review. In the prior year, share capital increased by CHF 0.05 million and the general reserves by CHF 0.3 million due to the exercise of options.
As at 31 December 2016, the company held 2,044 treasury shares. Over the course of the financial year, the initial holding as at 1 January of 1,247 shares was increased through the purchase of a total of 7,000 shares at an average price of CHF 215.90. 6,203 shares were granted to the Board of Directors and management as part of their remuneration arrangements.
The Annual General Meeting of 29 March 2016 approved a distribution from the capital contribution reserves of CHF 10.00 per share for the 2015 financial year, which was paid on 5 April 2016.
Compensation for the Board of Directors may be partly drawn in the form of shares. The number of shares to which a Board member is entitled is calculated based on the share price applicable on the date of allocation. The value of the allocated shares is charged as a personnel expense to the income statement, while the difference between the share price and the carrying amount is reported in the financial result in accordance with the FIFO principle.
In the year under review, 1,239 shares with a value of TCHF 291 were allocated to the Board of Directors as compensation
As at 31 December 2016, the shareholdings of the members of the Board of Directors and the Executive Board or related parties were as set out below:
| Name, function | No. of shares issued |
No. of shares approved |
Total 2016 |
Total 2015 |
|---|---|---|---|---|
| BoD | 22,882 | 0 | 22,882 | 23,302 |
| Georges Theiler, BoD Chairman |
5,845 | 0 | 5,845 | 5,845 |
| Brian Fischer, BoD | 3,245 | 0 | 3,245 | 3,705 |
| Wilhelm Hansen, BoD | 5,123 | 0 | 5,123 | 5,293 |
| Peter Schaub, BoD | 120 | 0 | 120 | 120 |
| Daniel Crausaz, BoD | 2,487 | 0 | 2,487 | 2,487 |
| Bernard Guillelmon, BoD | 5,711 | 0 | 5,711 | 5,711 |
| Peter Barandun, BoD | 351 | 0 | 351 | 141 |
| Executive Board | 25,673 | 4,291 | 29,964 | 28,488 |
| Christoph Caviezel, CEO | 12,873 | 1,374 | 14,247 | 13,781 |
| Manuel Itten, CFO | 6,512 | 815 | 7,327 | 7,489 |
| Andreas Hämmerli, Head of Development |
3,400 | 737 | 4,137 | 4,210 |
| Thomas Stauber, Head of Real Estate |
2,404 | 815 | 3,219 | 2,380 |
| Marc Pointet, Head of Mobimo Suisse romande |
484 | 550 | 1,034 | 628 |
The approved number of shares from the profit-sharing entitlement of the Executive Board was based on the assumption that a ratio of 50% as stipulated in the compensation regulations applies.
As at the reporting date, the following shareholders held 3% or more of the shares and options in Mobimo Holding AG:
| % | 31. 12. 2016 | 31. 12. 2015 |
|---|---|---|
| BlackRock, Inc. | 4,97 | 5,02 |
| Pensionskasse des Kantons Zug | 3,38 | 3,38 |
As a holding company, Mobimo Holding AG has no employees.
Mobimo Holding AG forms a group for value added tax purposes (VAT group) together with CC Management SA, FM Service & Dienstleistungs AG, Immobilien Invest Holding AG, LO Holding Lausanne-Ouchy SA, LO Immeubles SA, Mobimo AG, Mobimo Management AG, O4Real AG, Petit Mont-Riond SA and Promisa SA. CC Management SA was added to the VAT group on 1 January 2016 and FM Service & Dienstleistungs AG on 1 May 2016. Mobimo is jointly and severally liable for the liabilities arising from the VAT group. As part of an external financing arrangement with a bank, Mobimo
Holding AG provided a joint and several guarantee of CHF 20 million for a Group company. As part of another external financing arrangement, Mobimo Holding AG gave an undertaking in a letter of comfort to ensure that Mobimo AG maintains equity of at least CHF 100 million.
No significant events took place after the reporting date that would require adjustments to the carrying amounts of assets and liabilities or would require disclosure in this section.
| TCHF | 2016 | 2015 |
|---|---|---|
| Balance brought forward | 305,919 | 264,830 |
| Profit for the year | 62,109 | 41,089 |
| Reversal of capital contribution reserves | 62,182 | 62,153 |
| Retained earnings | 430,209 | 368,072 |
| Treasury shares | –446 | –262 |
| Total available to the General Meeting | 429,763 | 367,810 |
| The Board of Directors proposes the following appropriation of profit to the General Meeting: | ||
| Payment of a dividend in the form of a distribution of paid-in capital of | 62,182 | 62,153 |
| Carried forward to new account | 368,028 | 305,919 |
| Total appropriation of profit proposed | 430,209 | 368,072 |
| Treasury shares | –446 | –262 |
| Appropriation of profit proposed less treasury shares | 429,763 | 367,810 |
| Total distribution | 62,182 | 62,153 |
| Less share from capital contribution reserves | –62,182 | –62,153 |
The Board of Directors will propose to the General Meeting the payment of a dividend of CHF 10.00 per share from the capital contribution reserves.
Shares that were held as treasury shares at the time of the dividend resolution by the General Meeting are not eligible for the dividend payment.
The final figure for the reversal/distribution of capital contribution reserves depends on the number of treasury shares and the consequent number of shares with dividend entitlement issued by the date of the dividend distribution. If Mobimo Holding AG holds treasury shares on the date of the dividend distribution, the reversal or distribution from the capital contribution reserves will be correspondingly lower.
To the General Meeting of Mobimo Holding AG, Lucerne
We have audited the financial statements of Mobimo Holding AG, which comprise the balance sheet as at 31 December 2016, and the income statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion the financial statements (pages 132 to 138) for the year ended 31 December 2016 comply with Swiss law and the company's articles of incorporation.
We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Our responsibilities under those provisions and standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the entity in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We have determined that there are no key audit matters to communicate in our report.
The Board of Directors is responsible for the preparation of the financial statements in accordance with the provisions of Swiss law and the company's articles of incorporation, and for such internal control as the Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and Swiss Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Swiss law and Swiss Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors or its relevant committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report, unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
In accordance with article 728a para. 1 item 3 CO and the Swiss Auditing Standard 890, we confirm that an internal control system exists, which has been designed for the preparation of financial statements according to the instructions of the Board of Directors.
We further confirm that the proposed appropriation of available earnings complies with Swiss law and the company's articles of incorporation. We recommend that the financial statements submitted to you be approved.
KPMG AG
Kurt Stocker Reto Kaufmann Licensed Audit Expert Auditor in Charge
Lucerne, 7 February 2017
KPMG AG, Pilatusstrasse 41, PO Box, CH-6003 Lucerne
Licensed Audit Expert
KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss legal entity. All rights reserved.
The Mobimo Group reports its key performance and cost ratio measures in accordance with the Best Practices Recommendations of the EPRA Reporting and Accounting Committee. The European Public Real Estate Association is an association of leading European property companies and is a partner of the FTSE EPRA/NA-REIT index family, which added the Mobimo Holding AG share as one of its components on 20 June 2011. The figures published elsewhere by Mobimo on NAV, net initial yield and vacancy rates may deviate from the EPRA measures set out below, as Mobimo does not, for example, include the market value of trading properties, which are recognised at cost, and bases its calculations on effective rents. However, when calculating earnings per share Mobimo does take account of gains on the sale of trading and investment properties.
| A EPRA Earnings and EPRA Earnings Per Share Unit |
2015 | |||
|---|---|---|---|---|
| Earnings as per IFRS income statement | TCHF | 158,656 | 103,937 | |
| (i) | Changes in value of investment properties, development properties held for investment and other interests |
TCHF | –80,704 | –34,742 |
| (ii) | Profits or losses on disposal of investment properties, development properties held for investment and other interests |
TCHF | –34,945 | –63,752 |
| (iii) | Profit on sale of trading properties and development services adjusted | TCHF | 2,257 | 11,340 |
| (iv) | Tax on profits or losses on disposals | TCHF | 9,638 | 23,238 |
| (v) | Negative goodwill/goodwill impairment | TCHF | n/a | n/a |
| (vi) | Changes in fair value of financial instruments and asscociated close-out costs | TCHF | –3,387 | 3,043 |
| (vii) | Acquisition costs on share deals and non-controlling joint venture interests | TCHF | n/a | n/a |
| (viii) | Deferred tax in respect of EPRA adjustments | TCHF | –1,474 | 6,974 |
| (ix) | Adjustments to positions (i) to (viii) in respect of joint ventures | TCHF | 0 | 0 |
| (x) | Non-controlling interests in respect of the above | TCHF | 1,338 | 774 |
| EPRA Earnings | TCHF | 51,378 | 50,811 | |
| Average number of shares outstanding | 6,215,739 | 6,216,279 | ||
| EPRA Earnings Per Share CHF |
8.17 |
| B EPRA Net Asset Value | 31.12.2016 | 31.12.2015 | ||
|---|---|---|---|---|
| NAV as per consolidated financial statements | TCHF | 1,350,936 | 1,258,617 | |
| Effect of exercise of options, convertibles and other equity instruments | TCHF | 0 | 0 | |
| Diluted NAV after the exercise of options, convertibles and other equity instruments | TCHF | 1,350,936 | 1,258,617 | |
| Include | ||||
| (i.a) | Revaluation of investment properties (if IAS 40 cost model is used) | TCHF | n/a | n/a |
| (i.b) | Revaluation of investment property under construction (IPUC) (if IAS 40 cost model is used) | TCHF | n/a | n/a |
| (i.c) | Revaluation of other non-current investments (owner-occupied properties and joint ventures) | TCHF | 26,207 | 23,372 |
| (ii) | Revaluation of tenant leases held as finance leases | TCHF | n/a | n/a |
| (iii) | Revaluation of trading properties | TCHF | 26,172 | 26,244 |
| Exclude | ||||
| (iv) | Fair value of financial instruments | TCHF | 39,834 | 38,998 |
| (v.a) | Deferred tax | TCHF | 161,572 | 166,480 |
| (v.b) | Goodwill as a result of deferred tax | TCHF | n/a | n/a |
| Adjustments to (i) to (v) in respect of joint ventures | TCHF | 2,344 | 3,615 | |
| EPRA NAV | TCHF | 1,607,065 | 1,517,325 | |
| Diluted no. of shares outstanding | 6,216,126 | 6,216,923 | ||
| EPRA NAV per share | CHF | 258.53 | 244.06 |
| C Triple Net Asset Value (NNNAV) Unit |
31. 12. 2015 | |||
|---|---|---|---|---|
| EPRA NAV | TCHF | 1,607,065 | 1,517,325 | |
| (i) | Fair value of derivative financial instruments | TCHF | –39,834 | –38,998 |
| (ii) | Fair value of financial liabilities | TCHF | –105,182 | –105,976 |
| (iii) | Deferred tax | TCHF | –156,089 | –166,483 |
| EPRA NNNAV | TCHF | 1,305,960 | 1,205,869 | |
| Diluted no. of shares outstanding | 6,216,126 | 6,216,923 | ||
| EPRA NNNAV per share CHF |
193.97 |
| D EPRA Net Initial Yield | Unit | 31.12.2016 | 31.12.2015 |
|---|---|---|---|
| Investment properties – wholly owned | TCHF | 2,446,798 | 2,412,768 |
| Investment properties – share of joint ventures/funds | TCHF | 43,115 | 38,154 |
| Trading property | TCHF | 304,844 | 226,564 |
| Less developments | TCHF | –518,574 | –399,884 |
| Completed property portfolio | TCHF | 2,276,183 | 2,277,602 |
| Allowance for estimated purchasers' costs | TCHF | 0 | 0 |
| Gross up completed property portfolio valuation | TCHF | 2,276,183 | 2,277,602 |
| Annualised cash passing rental income | TCHF | 119,968 | 120,208 |
| Direct cost of investment properties | TCHF | –17,324 | –17,811 |
| Annualised net rents | TCHF | 102,644 | 102,397 |
| Add: additional notional rent expiration of rent free periods or other lease incentives | TCHF | 0 | 0 |
| Topped-up net annualised rent | TCHF | 102,644 | 102,397 |
| EPRA net initial yield | % | 4.5 | 4.5 |
| EPRA "topped-up" net initial yield | % | 4.5 | 4.5 |
| E EPRA Vacancy Rate | Unit | 31. 12. 2016 | 31. 12. 2015 |
| Estimated rental income potential from vacant space | TCHF | 5,363 | 5,376 |
Estimated rental income from overall portfolio TCHF 111,077 114,301
EPRA vacancy rate % 4.8 4.7
| F EPRA Cost Ratios | Unit | 2016 | 2015 |
|---|---|---|---|
| EPRA Costs | |||
| Administrative operating expense lines per IFRS income statement | |||
| Direct expenses for rented properties | TCHF | 15,603 | 10,733 |
| Personnel expenses | TCHF | 7,574 | 7,260 |
| Operating and administrative expenses | TCHF | 1,768 | 1,749 |
| EPRA Costs (including direct vacancy costs) | TCHF | 24,945 | 19,741 |
| Direct vacancy costs | TCHF | 1,915 | 537 |
| EPRA Costs (excluding direct vacancy costs) | TCHF | 23,030 | 19,204 |
| EPRA Rental income | |||
| Gross Rental Income less ground rent costs | TCHF | 103,507 | 97,282 |
| Gross Rental Income | TCHF | 103,507 | 97,282 |
| EPRA Cost Ratio (including direct vacancy costs) | % | 24.1 | 20.3 |
| EPRA Cost Ratio (excluding direct vacancy costs) | % | 22.2 | 19.7 |
| Unit | 20122 | 2013 | 2014 | 2015 | 2016 | Change in % | |
|---|---|---|---|---|---|---|---|
| Results of operations | |||||||
| Net rental income | CHF million | 79.8 | 78.9 | 87.6 | 94.1 | 96.2 | 2.3 |
| Profit on sale of trading properties and development services |
CHF million | 21.7 | 31.6 | 24.9 | 5.5 | 23.9 | 330.5 |
| Profit on sale of | |||||||
| investment properties | CHF million | –0.1 | 7.1 | 4.9 | 63.8 | 34.9 | –45.2 |
| EBIT including revaluation | CHF million | 117.2 | 119.4 | 97.6 | 170.4 | 200.3 | 17.5 |
| EBIT excluding revaluation | CHF million | 80.3 | 94.1 | 93.8 | 135.7 | 119.6 | –11.9 |
| Tax expense | CHF million | –17.6 | –16.7 | –4.8 | –34.1 | –15.1 | –55.6 |
| Profit | CHF million | 75.9 | 81.6 | 63.2 | 105.0 | 159.4 | 51.9 |
| Profit including revaluation1 | CHF million | 76.2 | 81.6 | 62.2 | 103.9 | 158.7 | 52.7 |
| Profit excluding revaluation1 | CHF million | 48.5 | 62.6 | 60.2 | 78.6 | 99.4 | 26.5 |
| Financial position | |||||||
| Non-current assets | CHF million | 2,043.9 | 2,156.7 | 2,301.3 | 2,467.7 | 2,502.7 | 1.4 |
| Current assets | CHF million | 475.6 | 551.7 | 466.4 | 485.2 | 529.0 | 9.0 |
| Equity as at 31.12. | CHF million | 1,199.2 | 1,241.1 | 1,222.5 | 1,264.7 | 1,366.3 | 8.0 |
| Equity ratio | % | 47.6 | 45.8 | 44.2 | 42.8 | 45.1 | 5.4 |
| Liabilities | CHF million | 1,320.3 | 1,467.4 | 1,545.2 | 1,688.2 | 1,665.4 | –1.4 |
| • current | CHF million | 173.2 | 373.7 | 114.2 | 138.3 | 203.2 | 46.9 |
| • non-current | CHF million | 1,147.1 | 1,093.7 | 1,431.1 | 1,549.9 | 1,462.2 | –5.7 |
| Share figures | |||||||
| Earnings per share | CHF | 12.30 | 13.14 | 10.00 | 16.72 | 25.52 | 52.6 |
| Earnings per share excluding | |||||||
| revaluation | CHF | 7.83 | 10.09 | 9.69 | 12.65 | 15.99 | 26.4 |
| NAV per share, after options | |||||||
| and convertible bond | CHF | 193.99 | 200.01 | 195.93 | 202.45 | 217.33 | 7.3 |
| Dividend yield | % | 4.1 | 5.1 | 4.8 | 4.5 | 3.9 | –13.3 |
| Payout ratio | % | 73.2 | 72.3 | 95.0 | 59.8 | 39.2 | –34.4 |
| Year-end price | CHF | 218.90 | 186.10 | 199.20 | 222.70 | 254.75 | 14.4 |
| Average number of shares traded | |||||||
| per day | Number | 9,308 | 11,132 | 8,672 | 11,638 | 10,035 | –13.8 |
| Market capitalisation | CHF million | 1,359.1 | 1,156.5 | 1,238.3 | 1,384.8 | 1,584.1 | 14.4 |
| Share price – High | CHF | 228.00 | 221.10 | 200.70 | 229.40 | 254.75 | 11.0 |
| Share price – Low | CHF | 202.60 | 182.80 | 182.00 | 190.50 | 206.10 | 8.2 |
| Portfolio figures | |||||||
| Overall portfolio | CHF million | 2,355.0 | 2,371.9 | 2,469.7 | 2,654.6 | 2,765.6 | 4.2 |
| • Investment properties | CHF million | 1,557.6 | 1,577.7 | 1,907.4 | 2,132.4 | 2,111.5 | –1.0 |
| • Development properties | CHF million | 797.4 | 794.2 | 562.3 | 522.2 | 654.1 | 25.3 |
| Gross yield from | |||||||
| investment properties | % | 5.8 | 5.7 | 5.6 | 5.4 | 5.3 | –1.9 |
| Net yield from investment properties | % | 4.8 | 4.6 | 4.5 | 4.3 | 4.1 | –4.7 |
| Investment property vacancy rate | % | 3.8 | 3.9 | 5.4 | 4.7 | 4.8 | 2.1 |
1 Attributable to the shareholders of Mobimo Holding AG.
2 Restated, due to the changes in IAS 19.
Federal Act of 16 December 1983 on the Acquisition of Immovable Property in Switzerland by Foreign Non-Residents.
The CDP possesses the world's most comprehensive collection of environmental data from companies, organisations and governments and evaluates this systematically for investors.
Federal Act of 30 March 1911 on the Amendment of the Swiss Civil Code (Part Five: Code of Obligations).
Condominium.
The method used for calculating the fair value of real estate. The fair value of a property is calculated from the present values of net cash flows expected in the future (valuation period of 100 years). The net cash flows are discounted at a discount rate on the reporting date.
The annual dividend income of a share as a percentage of the current share price.
Earnings per share are calculated from the Group result attributable to the shareholders of Mobimo Holding AG, divided by the weighted average of the number of shares outstanding during the reporting period.
Earnings before interest and tax.
Earnings before interest, tax, depreciation and amortisation.
Ordinance of 20 November 2013 against Excessive Remuneration in Listed Companies Limited by Shares.
EPRA is an association of leading European property companies and is a partner of the FTSE EPRA/NAREIT index family.
DGNB is an internationally recognised and comprehensive certification system used to objectively describe and assess the sustainability of buildings and districts. It comprises the six key aspects of sustainable building, namely environmental, economical, sociocultural and functional aspects, technology, processes and site.
GRESB is the leading industry-oriented organisation for the assessment of the sustainability performance of real estate portfolios worldwide.
GRI develops the guidelines for the creation of sustainability reports of major companies, small and medium-sized businesses, governments and NGOs.
Revenues from the rental of investment properties include net rental revenues, i.e. target rental revenues less rents lost due to vacancy rates.
The interest coverage factor is calculated from the earnings before interest, tax, depreciation and amortisation (EBITDA) excl. revaluation, divided by the interest expense.
Share price on the reporting date multiplied by the number of shares issued.
A building standard for new and modernised buildings. The focus of this standard is ensuring the comfort of the people working and living in the respective building.
Mobimo Holding AG
The value of equity as per the consolidated annual financial statements.
Net financial liabilities in relation to equity.
The number of shares issued minus the number of treasury shares.
The payout ratio refers to the ratio of dividend payments (in accordance with the proposal to the General Meeting) to the profit earned by the company.
Profit (attributable to the shareholders of Mobimo Holding AG) in relation to average equity (attributable to the shareholders of Mobimo Holding AG; equity at 1 January plus capital increase/reduction).
Profit (attributable to the shareholders of Mobimo Holding AG) not including revaluation (and attributable deferred tax) in relation to average equity (attributable to the shareholders of Mobimo Holding AG; equity at 1 January plus capital increase/reduction).
Federal Act of 24 March 1995 on Stock Exchanges and Securities Trading.
The Swiss Performance Index (SPI) comprises practically all of the SIX Swiss Exchange-traded equity securities of companies that are domiciled in Switzerland or the Principality of Liechtenstein. It is therefore considered Switzerland's overall stock market index.
The SXI Swiss Real Estate Indices brings together the five largest and most liquid real estate shares as well as the ten largest and most liquid real estate funds listed on the SIX Swiss Exchange.
The Swiss Society of Engineers and Architects is the main professional association for qualified experts from the fields of construction, technology and the environment.
This rate is calculated as the sum of all rent lost due to vacancy, divided by the target rental revenues.
Half-year report
Mobimo publishes information about its financial results every six months. The sustainability report is released once a year in both German and English, while the annual report and half-year report are also available in German and French. The financial statements are only provided in summary form in French. The original German version is, however, binding.
All of the publications and further information are available at www.mobimo.ch.
Overall responsibility: Mobimo Holding AG
Development of content and design concept, consulting and production: PETRANIX Corporate and Financial Communications AG, Adliswil-Zurich
Photos: Markus Bertschi, www.markusbertschi.com Mike Kessler, www.profifoto.ch Catherine Leutenegger, www.cleutenegger.com Rob Lewis and Ben Zurbriggen, www.rob-lewis.ch
Rütligasse 1 CH-6000 Lucerne 7 Tel. +41 41 249 49 80 Fax +41 41 249 49 89
Seestrasse 59 CH-8700 Küsnacht Tel. +41 44 397 11 11 Fax +41 44 397 11 12
Rue de Genève 7 CH-1003 Lausanne Tel. +41 21 341 12 12 Fax +41 21 341 12 13
Dr. Christoph Caviezel, CEO Manuel Itten, CFO Tel. +41 44 397 11 95 [email protected]
Tel. +41 44 809 58 58 [email protected]
Rütligasse 1 CH-6000 Lucerne 7 Tel. +41 41 249 49 80 Fax +41 41 249 49 89 www.mobimo.ch
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