14.6 Asset and Capital Structure of the Bayer Group

Bayer Group Summary Statements of Financial Position

 

 

Dec. 31, 2014

 

Dec. 31, 2015

 

Change

 

 

€ million

 

€ million

 

%

Noncurrent assets

 

48,007

 

50,096

 

4.4

Current assets

 

22,227

 

23,624

 

6.3

Assets held for sale

 

 

197

 

Total current assets

 

22,227

 

23,821

 

7.2

Total assets

 

70,234

 

73,917

 

5.2

 

 

 

 

 

 

 

Equity

 

20,218

 

25,445

 

25.9

Noncurrent liabilities

 

34,513

 

31,492

 

(8.8)

Current liabilities

 

15,503

 

16,868

 

8.8

Provisions directly related to assets held for sale

 

 

112

 

Total current liabilities

 

15,503

 

16,980

 

9.5

Liabilities

 

50,016

 

48,472

 

(3.1)

Total equity and liabilities

 

70,234

 

73,917

 

5.2

Total assets as of December 31, 2015, increased by 5.2% to €73.9 billion. Noncurrent assets rose by 4.4% to €50.1 billion due mainly to currency effects. The carrying amount of current assets climbed to €23.8 billion, due mainly to an increase in trade accounts receivable and other receivables.

Equity increased by €5.2 billion to €25.4 billion. The positive effects from the net income of €4.1 billion (2014: €3.4 billion), the exchange differences of €0.7 billion (2014: €1.4 billion) and the decline of €0.8 billion (2014: negative effect from the increase of €3.5 billion) – recognized outside profit or loss – in post-employment benefit obligations were offset by the dividend payment of €1.9 billion (2014: €1.7 billion). In addition, the capital increase at Covestro as a result of the successful stock market flotation increased equity by €1.5 billion. The equity ratio (equity coverage of total assets) as of December 31, 2015 was 34.4% (2014: 28.8%).

Liabilities decreased by €1.5 billion compared with December 31, 2014, to €48.5 billion. Decreases in provisions for pensions and other post-employment benefits and financial liabilities more than offset increases in other provisions, trade accounts payable and tax liabilities.

Net Defined Benefit Liability for Post-Employment Benefits

 

 

Dec. 31, 2014

 

Dec. 31, 2015

 

 

€ million

 

€ million

Provisions for pensions and other post-employment benefits

 

12,236

 

10,873

Net defined benefit asset

 

(41)

 

(30)

Net defined benefit liability for post-employment benefits

 

12,195

 

10,843

The net defined benefit liability for pensions and other post-employment benefits decreased from €12.2 billion to €10.8 billion in 2015 due to an increase in long-term capital market interest rates for high-quality corporate bonds.

Ratios

 

 

 

 

2014

 

2015

2014 figures restated

1

Property, plant and equipment

Cost of sales ratio (%)

 

Cost of goods sold

 

48.2

 

45.7

 

Sales

 

 

R & D expense ratio (%)

 

Research and development expenses

 

8.6

 

9.2

 

Sales

 

 

Return on sales in (%)

 

Income after income taxes

 

8.3

 

8.8

 

Sales

 

 

EBIT margin (%)

 

EBIT

 

13.1

 

13.5

 

Sales

 

 

EBITDA margin before special items (%)

 

EBITDA before special items

 

21.0

 

22.2

 

Sales

 

 

Asset intensity (%)

 

Property, plant and equipment + intangible assets

 

60.4

 

59.1

 

Total assets

 

 

Reinvestment ratio (%)

 

Capital expenditures1

 

165.1

 

153.1

 

Depreciation1

 

 

Liability structure (%)

 

Current liabilities

 

31.0

 

35.0

 

Liabilities

 

 

Gearing

 

Net debt + pension provisions

 

1.6

 

1.1

 

Equity

 

 

Free operating cash flow (€ million)

 

Net operating cash flow less cash outflows for property, plant and equipment and intangible assets

 

3,332

 

4,334

Inventory turnover

 

Cost of goods sold

 

2.3

 

2.5

 

Inventories

 

 

Receivables turnover

 

Sales

 

4.5

 

4.7

 

Trade accounts receivable

 

 

Payables turnover

 

Cost of goods sold

 

3.7

 

3.6

 

Trade accounts payable

 

 

Equity ratio (%)

 

Equity

 

28.8

 

34.4

 

Total assets

 

 

Return on equity (%)

 

Income after income taxes

 

16.8

 

17.9

 

Average equity

 

 

Return on assets (%)

 

Income before income taxes and interest expense

 

8.4

 

8.4

 

Average total assets