Management Report
4.6 Asset and Capital Structure of the Bayer Group
| Bayer Group Summary Statements of Financial Position | [Table 3.22] |
|---|
| | Dec. 31, 2009 | Dec. 31, 2010 | Change |
| | € million | € million | % |
| Noncurrent assets | 34,049 | 33,188 | -2.5 |
| Current assets | 16,993 | 18,318 | +7.8 |
| Total assets | 51,042 | 51,506 | +0.9 |
| | | | |
| Equity | 18,951 | 18,896 | -0.3 |
| Noncurrent liabilities | 23,118 | 21,775 | -5.8 |
| Current liabilities | 8,973 | 10,835 | +20.8 |
| Liabilities | 32,091 | 32,610 | +1.6 |
| Total equity and liabilities | 51,042 | 51,506 | +0.9 |
Total assets increased in 2010 by 0.9% to €51.5 billion. Noncurrent assets declined by €0.9 billion to €33.2 billion, mainly due to amortization and impairments of intangible assets. Noncurrent assets included goodwill of €9.0 billion (2009: €8.7 billion), the increase being mainly due to shifts in exchange rates. Current assets rose by €1.3 billion compared with the previous year, to €18.3 billion.
Equity was almost level with the prior year at €18.9 billion, bolstered mainly by the €1.3 billion net income and €0.6 billion in positive currency effects. The €1.2 billion dividend payment made in 2010 and the €0.7 billion increase in pension obligations – recognized outside profit or loss – had the opposite effect. Our equity ratio (equity coverage of total assets) was 36.7% as of December 31, 2010 (2009: 37.1%).
Liabilities increased by €0.5 billion compared with December 31, 2009, to €32.6 billion, largely because of the increase in pension obligations and the allocations to provisions for litigations. Current and noncurrent financial liabilities declined by €1.1 billion to €11.8 billion.
| Net Pension Liability | [Table 3.23] |
|---|
| | Dec. 31, 2009 | Dec. 31, 2010 |
| | € million | € million |
| Provisions for pensions and other post-employment benefits | 6,517 | 7,305 |
| Benefit plan assets in excess of obligation | (100) | (76) |
| Net pension liability | 6,417 | 7,229 |
The net pension liability increased from €6.4 billion to €7.2 billion in 2010, due especially to lower long-term capital market interest rates. Provisions for pensions and other post-employment benefits rose from €6.5 billion to €7.3 billion. Benefit plan assets in excess of obligations, reflected in the statement of financial position as “Other receivables,” came to €0.1 billion (2009: €0.1 billion).
| Ratios | [Table 3.24] |
|---|
| | | 2009 | 2010 |
Cost of sales ratio (%)
| Cost of goods sold | 48.6 | 48.7 |
| Sales |
R&D expense ratio (%)
| Research and development expenses | 8.8
| 8.7 |
| Sales |
Return on sales (%)
| Income after taxes | 4.4 | 3.7 |
| Sales |
EBIT margin (%)
| EBIT | 9.6 | 7.8 |
| Sales |
EBITDA margin before
special items (%) | EBITDA before special items | 20.8 | 20.2 |
| Sales |
Asset intensity (%)
| Property, plant and equipment
+ intangible assets |
60.6 |
58.2 |
| Total assets |
D & A/capex ratio (%)
| Depreciation and amortization* | 159.4 | 156.8 |
| Capital expenditures * |
Liability structure (%)
| Current liabilities | 28.0 | 33.2 |
| Liabilities |
Gearing
| Net debt + pension provisions |
0.9
|
0.8
|
| Equity |
Free operating cash flow (€ million)
| Net operating cash flow
less cash outflows for property, plant and
equipment and intangible assets | 3,800 | 4,259 |
Inventory turnover
| Cost of goods sold | 2.5 | 2.8 |
| Inventories |
| Receivables turnover | Sales | 5.1
| 5.3
|
| Trade accounts receivable |
| Payables turnover | Cost of goods sold | 5.5
| 4.9
|
| Trade accounts payable |
Equity ratio (%)
| Equity | 37.1 | 36.7 |
| Total assets |
Return on equity (%)
| Income after taxes | 7.7 | 6.9 |
| Average equity |
Return on assets (%)
| Income before taxes and interest expense |
6.1
|
5.1
|
| Average total assets for the year |
| * property, plant and equipment + intangible assets |