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, 2012 Dec. 31, 2013 Change
€ million € million %
Noncurrent assets 32,308 32,289 -0.1
Current assets 19,010 19,028 +0.1
Total assets 51,318 51,317
Equity 18,551 20,804 +12.1
Noncurrent liabilities 19,663 16,490 -16.1
Current liabilities 13,104 14,023 +7.0
Liabilities 32,767 30,513 -6.9
Total equity and liabilities 51,318 51,317
2012 figures restated

Total assets as of December 31, 2013, were unchanged from the previous year at €51.3 billion. Noncurrent assets were at the prior-year level of €32.3 billion and included goodwill of €9.9 billion (2012: €9.3 billion). The increase in goodwill was mainly the result of acquisitions made in 2013. The decline in other intangible assets and fluctuations in exchange rates had a negative effect. The carrying amount of current assets was also level with the previous year, at €19.0 billion.

Equity was higher by €2.2 billion at €20.8 billion. The factors in this increase included the net income of €3.2 billion and the decline of €1.3 billion – recognized outside profit or loss – in post-employment benefit obligations. The €1.6 billion (2012: €1.4 billion) dividend payment and €0.7 billion (2012: €0 billion) in negative exchange differences had an offsetting effect. Our equity ratio (equity coverage of total assets) as of December 31, 2013 was 40.5% (2012: 36.1%).

Liabilities receded by €2.3 billion compared with December 31, 2012, to €30.5 billion, mainly because of the decline in provisions for pensions and other post-employment benefits.

Net Defined Benefit Liability for Post-Employment Benefits[Table 3.16.9]
Dec. 31, 2012Dec. 31, 2013
€ million€ million
Provisions for pensions and other post-employment benefits9,2467,368
Benefit plan assets in excess of obligation(27)(117)
Net defined benefit liability for post-employment benefits9,2197,251
2012 figures restated

The net defined benefit liability for pensions and other post-employment benefits decreased from ­€9.2 billion to €7.3 billion in 2013, mainly in light of higher long-term capital market interest rates.

Ratios/Indicators[Table 3.16.10]
2012 2013
Cost of sales ratio (%) Cost of goods sold 48.0 48.2
Sales
R&D expense ratio (%) Research and development expenses 7.6 7.9
Sales
Return on sales (%) Income after income taxes 6.2 7.9
Sales
EBIT margin (%) EBIT 9.9 12.3
Sales
EBITDA margin before special items (%) EBITDA before special items 20.8 20.9
Sales
Asset intensity (%) Property, plant and equipment + intangible assets 55.8 56.1
Total assets
Reinvestment ratio (%) Capital expenditures* 119.9 137.5
Depreciation*
Liability structure (%) Current liabilities 40.0 46.0
Liabilities
Gearing Net debt + pension provisions 0.9 0.7
Equity
Free operating cash flow (€ million) Net operating cash flow less cash outflows for property, plant and equipment and intangible assets 2,601 3,014
Inventory turnover Cost of goods sold 2.7 2.7
Inventories
Receivables turnover Sales 5.3 5.3
Trade accounts receivable
Payables turnover Cost of goods sold 4.4 4.3
Trade accounts payable
Equity ratio (%) Equity 36.1 40.5
Total assets
Return on equity (%) Income after income taxes 13.0 16.2
Average equity
Return on assets (%) Income before income taxes and interest expense 7.5 9.5
Average total assets for the year

2012 figures restated

* property, plant and equipment

Last updated: February 28, 2014  Copyright © Bayer AG
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