Management Report & Annexes | Report on Economic Position

17.2 Asset and Financial Position of Bayer AG

Bayer AG Summary Statements of Financial Position according to the German Commercial Code   [Table 3.17.2]
  Dec. 31, 2013 Dec. 31, 2014
  € million € million
Assets    
     
Noncurrent assets    
Intangible assets, property, plant and equipment 21 18
Financial assets 35,300 40,919
  35,321 40,937
     
Current assets    
Receivables from subsidiaries 1,712 2,729
Remaining receivables, other assets 455 460
Cash and cash equivalents, marketable securities 972 1,243
  3,139 4,432
     
Total assets 38,460 45,369
     
Equity and Liabilities    
     
Equity 14,815 15,532
     
Provisions 2,976 2,406
     
Other liabilities    
Bonds and notes, liabilities to banks 2,229 7,210
Payables to subsidiaries 16,983 18,204
Remaining liabilities 1,457 2,017
  20,669 27,431
     
Total equity and liabilities 38,460 45,369

The asset and liability structure of Bayer AG is dominated by its role as a holding company in managing the subsidiaries and financing corporate activities. 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, 2014 were €45.4 billion (2013: €38.5 billion), which was €6.9 billion more than at the start of the year. Non-current assets rose by €5.6 billion and current assets by €1.3 billion.

Property, plant and equipment and intangible assets totaled €18 million (2013: €21 million) and were therefore of secondary importance. Financial assets increased by €5.6 billion, from €35.3 billion in the previous year to €40.9 billion at year end 2014, 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 88.3% (2013: 89.7%).

Receivables from subsidiaries amounted to €2.7 billion (2013: €1.7 billion) while payables to subsidiaries totaled €18.2 billion (2013: €17.0 billion). These amounts accounted for 6.1% of total assets and 40.1% of total equity and liabilities, respectively.

Including the deferred charges, the other receivables reflected in current assets were almost unchanged at €460 million (2013: €455 million) and were of only secondary importance in relation to total assets. Cash and cash equivalents were €271 million higher than in the previous year at €1,243 million (2013: €972 million) due to higher bank deposits.

Bayer AG had equity of €15.5 billion (2013: €14.8 billion), giving an equity ratio of 34.2% (2013: 38.5%). Net income for 2014 was €2,454 million while equity was diminished by the €1,737 million dividend payment for 2013. Despite the absolute rise in equity of €0.7 billion, the equity ratio declined by 4.3 percentage points as a result of the considerable increase in total assets.

Provisions decreased by €0.6 billion to €2.4 billion (2013: €3.0 billion). Pension provisions and provisions for taxes accounted for roughly equal proportions of the decline. Pension provisions decreased by €294 million to €1,868 million (2013: €2,162 million) while tax provisions were €283 million lower at €399 million (2013: €682 million). The other provisions were virtually unchanged at €139 million (2013: €132 million).

Other liabilities rose by €6.8 billion to €27.4 billion (net of deductible receivables; 2013: €20.7 billion), mainly due to the €6.1 billion increase in financial debt. Bonds with a total nominal amount of €5.25 billion were issued in 2014. In addition, the commercial paper program was increased by €0.5 billion and intra-Group debt rose by €0.7 billion. A promissory note with a face value of €0.25 billion was repaid in 2014 and other debt was reduced by €0.1 billion. Bayer AG had financial liabilities of €28.2 billion at year end 2014 (2013: €22.1 billion). After deduction of cash and cash equivalents of €1.2 billion, net debt was €5.9 billion higher than in the previous year at €27.0 billion (2013: €21.1 billion).

Last updated: February 26, 2015  Copyright © Bayer AG
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