Management Report & Annexes | Report on Economic Position

16.6 Asset and Capital Structure of the Bayer Group

Bayer Group Summary Statements of Financial Position   [Table 3.16.8]
  Dec. 31, 2013 Dec. 31, 2014 Change
  € million € million %
Noncurrent assets 32,289 48,007 +48.7
Current assets 19,028 22,227 +16.8
Total assets 51,317 70,234 +36.9
       
Equity 20,804 20,218 -2.8
Noncurrent liabilities 16,490 34,513 .
Current liabilities 14,023 15,503 +10.6
Liabilities 30,513 50,016 +63.9
Total equity and liabilities 51,317 70,234 +36.9

Total assets as of December 31, 2014, increased by 36.9% to €70.2 billion. Noncurrent assets rose by 48.7% to €48.0 billion due mainly to acquisitions. This was due to the €6.3 billion increase in goodwill and the €6.7 billion rise in other intangible assets. The carrying amount of current assets climbed to €22.2 billion.

Equity was lower by €0.6 billion at €20.2 billion. The positive effects from the net income of €3.4 billion and the exchange differences of €1.4 billion (2013: negative effect of €0.7 billion) were offset by the negative effect from the increase of €3.5 billion (2013: positive effect from the decline of €1.3 billion) – recognized outside profit or loss – in post-employment benefit obligations and the dividend payment of €1.7 billion (2013: €1.6 billion). The equity ratio (equity coverage of total assets) as of December 31, 2014 was 28.8% (2013: 40.5%).

Liabilities increased by €19.5 billion compared with December 31, 2013, to €50.0 billion, due to the acquisition-related €12.8 billion increase in financial liabilities and the €4.9 billion increase in provisions for pensions and other post-employment benefits.

Net Defined Benefit Liability for Post-Employment Benefits   [Table 3.16.9]
  Dec. 31, 2013 Dec. 31, 2014
  € million € million
Provisions for pensions and other post-employment benefits 7,368 12,236
Net defined benefit asset (117) (41)
Net defined benefit liability for post-employment benefits 7,251 12,195

The net defined benefit liability for pensions and other post-employment benefits increased from €7.3 billion to €12.2 billion in 2014, mainly due to a decline in long-term capital market interest rates for high-quality corporate bonds.

Ratios   [Table 3.16.10]
    2013 2014
Cost of sales ratio (%) Cost of goods sold 48.6 48.0
Sales
R & D expense ratio (%) Research and development expenses 8.5 8.5
Sales
Return on sales in (%) Income after income taxes 7.9 8.2
Sales
EBIT margin (%) EBIT 12.3 13.0
Sales
EBITDA margin before special items (%) EBITDA before special items 20.9 20.9
Sales
Asset intensity (%) Property, plant and equipment + intangible assets 56.1 61.6
Total assets
Reinvestment ratio (%) Capital expenditures1 137.5 165.5
Depreciation1
Liability structure (%) Current liabilities 46.0 31.0
Liabilities
Gearing Net debt + pension provisions 0.7 1.6
Equity
Free operating cash flow (€ million) Net operating cash flow less
cash outflows for property, plant and
equipment and intangible assets
3,014 3,439
Inventory turnover Cost of goods sold 2.7 2.4
Inventories
Receivables turnover Sales 5.3 4.6
Trade accounts receivable
Payables turnover Cost of goods sold 4.4 3.8
Trade accounts payable
Equity ratio (%) Equity 40.5 28.8
Total assets
Return on equity (%) Income after income taxes 16.2 16.8
Average equity
Return on assets (%) Income before income taxes and interest expense 9.5 8.6
Average total assets
2013 figures restated
1 property, plant and equipment
Last updated: February 26, 2015  Copyright © Bayer AG
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