Financial position
Equity and liabilities |
|||||
|
|
December 31, 2016 |
December 31, 2015 |
||
|---|---|---|---|---|---|
|
|
Million € |
% |
Million € |
% |
Paid-in capital |
|
4,306 |
5.6 |
4,317 |
6.1 |
Retained earnings |
|
31,515 |
41.2 |
30,120 |
42.5 |
Other comprehensive income |
|
(4,014) |
(5.2) |
(3,521) |
(5.0) |
Minority interests |
|
761 |
1.0 |
629 |
0.9 |
Equity |
|
32,568 |
42.6 |
31,545 |
44.5 |
|
|
|
|
|
|
Provisions for pensions and similar obligations |
|
8,209 |
10.7 |
6,313 |
8.9 |
Other provisions |
|
3,667 |
4.8 |
3,369 |
4.8 |
Deferred taxes |
|
3,317 |
4.3 |
3,381 |
4.8 |
Financial indebtedness |
|
12,545 |
16.4 |
11,123 |
15.7 |
Other liabilities |
|
873 |
1.2 |
869 |
1.2 |
Noncurrent liabilities |
|
28,611 |
37.4 |
25,055 |
35.4 |
|
|
|
|
|
|
Accounts payable, trade |
|
4,610 |
6.0 |
4,020 |
5.7 |
Provisions |
|
2,802 |
3.7 |
2,540 |
3.6 |
Tax liabilities |
|
1,288 |
1.7 |
1,082 |
1.5 |
Financial indebtedness |
|
3,767 |
4.9 |
4,074 |
5.7 |
Other liabilities |
|
2,850 |
3.7 |
2,520 |
3.6 |
Current liabilities |
|
15,317 |
20.0 |
14,236 |
20.1 |
Total equity and liabilities |
|
76,496 |
100.0 |
70,836 |
100.0 |
Equity and liabilities
- Equity ratio at 42.6%, compared with 44.5% in previous year
- Net debt rises from €12,935 million to €14,401 million
Equity rose by €1,023 million to €32,568 million compared with the previous year. Retained earnings increased by €1,395 million to €31,515 million. Other comprehensive income was reduced by €493 million to minus €4,014 million, primarily because of the remeasurement of defined benefit plans. The equity ratio was 42.6% (2015: 44.5%).
Compared with the end of 2015, noncurrent liabilities grew by €3,556 million to €28,611 million. Provisions for pensions and similar obligations increased by €1,896 million, mainly as a result of the reduced discount rate in all relevant currency zones. Noncurrent financial indebtedness rose by €1,422 million. A bond issued in 2013 with a maturity until 2021 was tapped, increasing its volume by €300 million to €1 billion; in addition, new bonds in EUR, GBP and HKD were issued with an equivalent value totaling €2.6 billion at the end of the year and maturities between 4 and 15 years, in part to finance the acquisition of Chemetall. Four bonds in EUR and GBP due in 2017 with an equivalent value totaling around €1.4 billion were reclassified to current financial indebtedness. Other provisions rose by €298 million while other liabilities matched the prior-year level. Deferred taxes decreased by €64 million.
Current liabilities grew by €1,081 million to €15,317 million. All items contributed to this development, with the exception of financial indebtedness. Trade accounts payable increased by €590 million, current provisions by €262 million, tax liabilities by €206 million and current other liabilities by €330 million. Current financial indebtedness fell by €307 million. This was largely on account of the €681 million year-on-year decrease in outstanding U.S. dollar commercial paper as of December 31, 2016, as well as the scheduled repayment of EUR bonds totaling €900 million. The previously mentioned reclassification of bonds had a counterbalancing effect.
In total, financial indebtedness grew by €1,115 million to €16,312 million. The average maturity of our financial indebtedness was 5.6 years (2015: 5.2 years). Net debt grew by €1,466 million to €14,401 million. This is calculated by subtracting marketable securities and cash and cash equivalents from current and noncurrent financial indebtedness. This balance-related indicator provides information on effective indebtedness.
For more on the development of the balance sheet, see the Ten-Year Summary
Net debt (million €) |
|||
|
|
Dec. 31, 2016 |
Dec. 31, 2015 |
|---|---|---|---|
Noncurrent financial indebtedness |
|
12,545 |
11,123 |
+ Current financial indebtedness |
|
3,767 |
4,074 |
Financial indebtedness |
|
16,312 |
15,197 |
– Marketable securities |
|
536 |
21 |
– Cash and cash equivalents |
|
1,375 |
2,241 |
Net debt |
|
14,401 |
12,935 |