15.2 Asset and Financial Position of Bayer AG

Bayer AG Summary Statements of Financial Position according to the German Commercial Code

 

 

Dec. 31,2014

 

Dec. 31,2015

 

 

€ million

 

€ million

Assets

 

 

 

 

 

 

 

 

 

Noncurrent assets

 

 

 

 

Intangible assets, property, plant and equipment

 

18

 

31

Financial assets

 

40,919

 

43,737

 

 

40,937

 

43,768

 

 

 

 

 

Current assets

 

 

 

 

Receivables from subsidiaries

 

2,729

 

3,159

Remaining receivables, other assets

 

460

 

380

Cash and cash equivalents, marketable securities

 

1,243

 

629

 

 

4,432

 

4,168

 

 

 

 

 

Total assets

 

45,369

 

47,936

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

 

 

 

Equity

 

15,532

 

15,032

 

 

 

 

 

Provisions

 

2,406

 

2,356

 

 

 

 

 

Other liabilities

 

 

 

 

Bonds and notes, liabilities to banks

 

7,210

 

7,203

Payables to subsidiaries

 

18,204

 

22,752

Remaining liabilities

 

2,017

 

593

 

 

27,431

 

30,548

 

 

 

 

 

Total equity and liabilities

 

45,369

 

47,936

The asset and liability structure of Bayer AG is dominated by its role in managing the subsidiaries and financing corporate activities as the parent company of the Bayer Group. This is primarily reflected in the high level of investments in affiliated companies and of the receivables from, and payables to, Group companies.

Total assets of Bayer AG as of December 31, 2015 were €48.0 billion, up from €45.4 billion at the start of the year because of the €2.8 billion increase in noncurrent assets. By contrast, current assets decreased by €0.3 billion in fiscal 2015.

Property, plant and equipment and intangible assets totaled €31 million (2014: €18 million) and were therefore of secondary importance. Financial assets increased by €2.8 billion to €43.7 billion (2014: €40.9 billion), principally as a result of capital increases at subsidiaries. Investments in affiliated companies continued to account for by far the largest item in total assets, amounting to 89.5% (2014: 88.3%).

Receivables from subsidiaries amounted to €3.2 billion (2014: €2.7 billion) while payables to subsidiaries totaled €22.8 billion (2014: €18.2 billion). These amounts accounted for 6.6% of total assets and 47.5% of total equity and liabilities, respectively.

Including the deferred charges, the other receivables reflected in current assets, at €380 million, were below the prior-year level of €460 million and were of only secondary importance in relation to total assets. Cash and cash equivalents were €614 million lower than in the previous year at €629 million (2014: €1,243 million) due to lower bank deposits.

Bayer AG had equity of €15.0 billion (2014: €15.5 billion). The decline in equity, coupled with the increase in total assets, caused the equity ratio to fall to 31.4% (2014: 34.2%). Net income for 2015 was €1,361 million while equity was diminished by the €1,861 million dividend payment for 2014.

Provisions were level year on year at €2.4 billion. While pension provisions decreased by €306 million to €1,562 million, tax provisions were €265 million higher at €664 million. The other provisions were virtually unchanged at €130 million (2014: €139 million).

Other liabilities rose by €3.1 billion to €30.5 billion (net of deductible receivables; 2014: €27.4 billion), mainly due to the €2.1 billion increase in financial debt. In this connection, external debt of the Group was reduced at the expense of higher debt to Group companies. Internal financial debt rose by €3.2 billion. Bonds in the same amount of €1.3 billion were issued and repaid in fiscal 2015. The use of funds from the commercial paper program decreased by €1.1 billion. Total financial debt at year end 2015 was €30.3 billion (2014: €28.2 billion). After deduction of cash and cash equivalents of €0.6 billion, net debt was €2.7 billion higher than in the previous year at €29.7 billion (2014: €27.0 billion).