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, 2012 Dec. 31, 2013
€ million € million
Noncurrent assets
Intangible assets, property, plant and equipment 22 21
Financial assets 34,310 35,300
34,332 35,321
Current assets
Receivables from subsidiaries 316 1,712
Remaining receivables, other assets 471 455
Cash and cash equivalents, marketable securities 903 972
1,690 3,139
Total assets 36,022 38,460
Equity and Liabilities
Equity 13,888 14,815
Provisions 2,719 2,976
Other liabilities
Bonds and notes, liabilities to banks 3,188 2,229
Payables to subsidiaries 15,874 16,983
Remaining liabilities 353 1,457
19,415 20,669
Total equity and liabilities 36,022 38,460

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 receivables from, and payables to, Group companies.

Total assets of Bayer AG as of December 31, 2013 were €38.5 billion (2012: €36.0 billion), which was €2.5 billion more than at the start of the year. Non-current assets rose by €1.0 billion and current assets by €1.5 billion.

Property, plant and equipment and intangible assets totaled €21 million (2012: €22 million) and were therefore of secondary importance. Financial assets increased by €1 billion, from €34.3 billion in the previous year to €35.3 million at year end 2013, principally as a result of capital increases at subsidiaries. Investments in affiliated companies continued to account for by far the greater proportion of total assets (89.7%; 2012: 93.0%).

Receivables from subsidiaries amounted to €1.7 billion (2012: €0.3 billion) while payables to subsidiaries totaled €17.0 billion (2012: €15.9 billion). These amounts accounted for 4.5% of total assets and 44.2% of total equity and liabilities, respectively.

Including the deferred charges, the other receivables reflected in current assets declined by €16 million to €455 million (2012: €471 million) and were of only secondary importance in relation to total assets. Cash and cash equivalents were €69 million higher than in the previous year at €972 million (2012: €903 million) due to higher bank deposits.

Bayer AG had equity of €14.8 billion (2012: €13.9 billion), an increase of €0.9 billion. Equity included net income for 2013 of €2,498 million, but was diminished by the €1,571 million dividend payment for 2012. The equity ratio was virtually unchanged at 38.5% (2012: 38.6%) despite the considerable increase in equity, as total assets also increased.

Provisions rose by €0.3 billion to €3.0 billion (2012: €2.7 billion). The greater part of this increase was attributable to a rise of €304 million in tax provisions to €682 million (2012: €378 million). Provisions for other personnel-related obligations, especially performance-related compensation, were increased by €28 million. By contrast, pension provisions decreased by €55 million to €2,162 million (2012: 2,217 million).

Other liabilities rose by €1.3 billion, mainly due to an increase of €1.2 billion financial debt, and amounted to €20.7 billion (net of deductible receivables; 2012: €19.4 billion). A bond with a nominal volume of €1 billion, issued in 2006, was redeemed at maturity in May 2013. However, a commercial paper program was increased by €795 million, intra-Group debt rose by €1,304 million and other loans were €51 million higher. Bayer AG had financial liabilities of €22.1 billion at year end 2013 (2012: €20.9 billion). After deduction of cash and cash equivalents of €1.0 billion, net debt was higher than in the previous year at €21.1 billion (2012: €20.0 billion).

Last updated: March 3, 2014  Copyright © Bayer AG