Annual Report 2013

Economic report

Net assets

Compared to year-end 2012, total assets decreased slightly by 181 million to 19.3 billion euros. Under non-current assets, the value of intangible assets decreased by 456 million euros, primarily as a result of foreign currency translation and amortization. Under property, plant and equipment, capital expenditures for continuing operations amounted to 404 million euros versus depreciation of 291 million euros. Foreign currency translation caused the value of property, plant and equipment to decrease by 97 million euros.

Current assets grew from 7.6 billion euros to 8.0 billion euros, influenced partly by higher trade accounts receivable. In addition, other financial assets increased due to investments in securities and time deposits. Cash and cash equivalents decreased by 187 million euros to 1.1 billion euros.

Financial structure

Compared to the previous year, equity including non-controlling interestsnon-controlling interests
Proportion of equity attributable to third parties in subsidiaries included within the scope of consolidation. Previously termed “minority interests.” Valued on a proportional net asset basis. A pro-rata portion of the net earnings of a corporation is due to shareholders owning non-controlling interests.
increased to 10,158 million euros. The changes are shown in detail in the consolidated statement of changes in equity. The equity ratioequity ratio
Financial metric indicating the ratio of equity to total capital. It expresses the share of total assets financed out of equity (owners’ capital) rather than debt capital (provided by lenders). Serves to assess the financial stability and independence of a company.
increased compared to the previous year by 3.8 percentage points to 52.5 percent.

The decline in non-current of 1.1 billion euros to 3.1 billion euros is due to the reclassification of our senior bond, maturing in March 2014 with a redemption value of 1.0 billion euros, as current borrowings. As of December 31, 2013, our hybrid bondhybrid bond
Equity-like corporate bond, usually with no specified date of maturity, or with a very long maturity, characterized by its subordination in the event of the issuer becoming insolvent.
with a redemption value of 1.3 billion euros remained classified under non-current borrowings. Our pension obligations decreased due to the higher average discount rates.

Compared to the situation as of December 31, 2012, current liabilities increased by 0.3 billion euros to 6.1 billion euros. Current borrowings were impacted in the reporting period by the reclassification of our senior bond, due to mature in March 2014. As a countervailing effect, current borrowings decreased due to the repayment of our senior bond, which matured in June 2013. In addition, the increase in current liabilities is also due to higher trade accounts payable and current provisions. Reflecting the development in current assets, these were higher than at the end of 2012.

Effective December 31, 2013, our net financial position1 has changed from a net debtnet debt
Borrowings less cash and cash equivalents and readily monetizable financial instruments classified as “available for sale” or in the “fair value option,” less positive and plus negative fair values of hedging transactions.
to a net cash position of 959 million euros. Net debtNet debt
Borrowings less cash and cash equivalents and readily monetizable financial instruments classified as “available for sale” or in the “fair value option,” less positive and plus negative fair values of hedging transactions.
at December 31, 2012 amounted to 85 million euros.

Net financial position
in million euros
2009– 2,807
2010– 2,066
2011– 1,392
2012– 85
2013959

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Net financial position

1

Borrowings less cash and cash equivalents and readily monetizable financial instruments classified as “available for sale“ or in the “fair valuefair value
Amount at which an asset or a liability might be exchanged or a debt paid in an arm’s length transaction between knowledgeable, willing parties.
option,” less positive and plus negative fair values of hedging transactions.