Asset and Capital Structure of the Bayer Group

Bayer Group Summary Statements of Financial Position

 

 

Dec. 31, 2015

 

Dec. 31, 2016

 

Change

 

 

€ million

 

€ million

 

%

Noncurrent assets

 

50,096

 

51,791

 

+3.4

Current assets

 

23,624

 

30,437

 

+28.8

Assets held for sale

 

197

 

10

 

−94.9

Total current assets

 

23,821

 

30,447

 

+27.8

Total assets

 

73,917

 

82,238

 

+11.3

Equity

 

25,445

 

31,897

 

+25.4

Noncurrent liabilities

 

31,492

 

31,804

 

+1.0

Current liabilities

 

16,868

 

18,537

 

+9.9

Provisions directly related to assets held for sale

 

112

 

 

−100.0

Total current liabilities

 

16,980

 

18,537

 

+9.2

Liabilities

 

48,472

 

50,341

 

+3.9

Total equity and liabilities

 

73,917

 

82,238

 

+11.3

Increases in total assets and equity

Total Assets

€ billion

Total Assets (bar chart)Total Assets (bar chart)

Total assets as of December 31, 2016, rose by €8.3 billion to €82.2 billion. The increase of €1.7 billion in noncurrent assets to €51.8 billion mainly resulted from an increase in deferred taxes, while other intangible assets declined. Total current assets rose by €6.6 billion to €30.4 billion, primarily due to cash inflows from the issuance of the mandatory convertible notes. Equity advanced by €6.5 billion to €31.9 billion. Net income of €4.5 billion (2015: €4.1 billion) and an increase of €3.5 billion in the capital reserves resulting from the issuance of the mandatory convertible notes were set against a negative effect of €0.8 billion (2015: positive effect of €0.8 billion) – recognized outside profit or loss – from changes in post-employment benefit obligations, and the dividend payment of €2.1 billion (2015: €1.9 billion). The equity ratio (equity coverage of total assets) as of December 31, 2016, was 38.8% (2015: 34.4%). Liabilities rose by €1.9 billion compared with December 31, 2015, to €50.3 billion. Trade accounts payable and other liabilities increased, while financial liabilities declined. The net defined benefit liability for pensions and other post-employment benefits increased by €0.3 billion to €11.1 billion. Losses of €0.8 billion from the reevaluation of the net obligations for defined benefit plans for pensions and other post-employment benefits stood against the contribution by Bayer AG of 4.9% of the outstanding Covestro shares with a value of €0.3 billion to Bayer Pension Trust e.V. and the contribution by Covestro of bonds with a value of €0.5 billion.

Online Annex: A 2.2.4-1

limited assurance

Ratios

 

 

 

 

2015

 

2016

2015 figures restated

1

Property, plant and equipment

Cost of sales ratio (%)

 

Cost of goods sold

 

45.7

 

43.4

 

Sales

 

 

R&D expense ratio (%)

 

Research and development expenses

 

9.3

 

10.0

 

Sales

 

 

Return on sales in (%)

 

Income after income taxes

 

8.9

 

10.3

 

Sales

 

 

EBIT margin (%)

 

EBIT

 

13.5

 

15.1

 

Sales

 

 

EBITDA margin before special items (%)

 

EBITDA before special items

 

22.3

 

24.2

 

Sales

 

 

Asset intensity (%)

 

Property, plant and equipment + intangible assets

 

59.1

 

52.3

 

Total assets

 

 

Reinvestment ratio (%)

 

Capital expenditures1

 

153.0

 

153.5

 

Depreciation1

 

 

Liability structure (%)

 

Current liabilities

 

35.0

 

36.8

 

Liabilities

 

 

Gearing

 

Net debt + pension provisions

 

1.1

 

0.7

 

Equity

 

 

Free operating cash flow (€ million)

 

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

 

4,325

 

5,681

Inventory turnover

 

Cost of goods sold

 

2.5

 

2.4

 

Inventories

 

 

Receivables turnover

 

Sales

 

4.6

 

4.3

 

Trade accounts receivable

 

 

Payables turnover

 

Cost of goods sold

 

3.5

 

3.2

 

Trade accounts payable

 

 

Equity ratio (%)

 

Equity

 

34.4

 

38.8

 

Total assets

 

 

Return on equity (%)

 

Income after income taxes

 

17.9

 

16.8

 

Average equity

 

 

Return on assets (%)

 

Income before income taxes and interest expense

 

8.2

 

8.5

 

Average total assets