Management Report
5.2 Asset and Financial Position of Bayer AG
| Bayer AG Summary Statements of Financial Position according to the German Commercial Code | [Table 3.26] |
|---|
| | Dec. 31, 2009 | Dec. 31, 2010 |
| | € million | € million |
| ASSETS | | |
| | | |
| Noncurrent assets | | |
| Intangible assets, property, plant and equipment | 395 | 347 |
| Financial assets | 34,594 | 34,267 |
| | 34,989 | 34,614 |
| | | |
| Current assets | | |
| Receivables from subsidiaries | 1,928 | 2,040 |
| Remaining receivables, other assets | 400 | 464 |
| Cash and cash equivalents, marketable securities | 1,862 | 2,131 |
| | 4,190 | 4,635 |
| | | |
| Total assets | 39,179 | 39,249 |
| | | |
| EQUITY AND LIABILITIES | | |
| | | |
| Equity | 14,391 | 14,478 |
| | | |
| Provisions | 3,258 | 3,328 |
| | | |
| Other liabilities | | |
| Bonds and notes, liabilities to banks | 7,029 | 5,842 |
| Payables to subsidiaries | 13,965 | 15,149 |
| Remaining liabilities | 536 | 452 |
| | 21,530 | 21,443 |
| | | |
| Total equity and liabilities | 39,179 | 39,249 |
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 were at the previous year’s level of €39.2 billion. A €0.4 billion decline in noncurrent assets was offset by an increase of the same amount in current assets.
Property, plant and equipment and intangible assets remained virtually unchanged, while financial assets declined by just €0.3 billion to €34.3 billion. Financial assets included investments in subsidiaries amounting to €33.7 billion (2009: €34.1 billion), or 85.9% (2009: 87.1%) of total assets.
Receivables from subsidiaries amounted to €2.0 billion (2009: €1.9 billion), while payables to subsidiaries totaled €15.1 billion (2009: €14.0 billion). These amounts accounted for 5.2% of total assets and 38.6% of total equity and liabilities, respectively.
Of the unchanged amount of €39.2 billion in total assets, €14.5 billion (2009: €14.4 billion) was equity-financed. The equity ratio rose from 36.7% to 36.9%. Equity was increased by the €1,245 million net income, but diminished by the €1,158 million dividend payment for 2009.
Provisions increased by €0.1 billion compared with the start of the year to €3.3 billion because of higher provisions for taxes.
Other liabilities were almost unchanged at €21.4 billion (net of deductible receivables; 2009: €21.5 billion). However, the financial debt included here declined by €1.3 billion to €23.0 billion. The decrease included a €1.2 billion drop in external financial debt, comprising a €0.9 billion reduction in liabilities to banks and the repayment of a €0.3 billion bond issued in 2007.