Net Assets

Assets

• Acquisition-driven increase in total assets
• Reclassification of material assets to current assets of disposal groups

Total assets amounted to €86,556 million as of December 31, 2018, around 10% higher than the prior-year figure. This increase was largely driven by the acquisition of significant businesses and assets from Bayer.

Noncurrent assets decreased by €4,288 million to €43,335 million. This is primarily attributable to the reclassification of noncurrent assets to the disposal groups, mainly for the oil and gas business and to a minor extent for the paper and water chemicals business.

The €2,960 million increase in intangible assets was largely attributable to acquisition-related additions, which amounted to €5,540 million as of the year-end, including €1,261 million in goodwill. The main offsetting effects were reclassifications to the disposal groups and depreciation and amortization.²

Property, plant and equipment declined by around 18% to €20,780 million, mainly as a result of reclassifications totaling €6,651 million, primarily to the disposal groups. Depreciation and amortization² amounted to €3,155 million, lower than investments (€3,615 million). Additions from acquisitions amounted to €1,425 million.

Investments accounted for using the equity method declined by €2,512 million to €2,203 million, largely due to the reclassification of oil and gas shareholdings to the disposal group.

At €570 million, other financial assets were down €36 million from the prior-year level. Deferred tax assets increased by €224 million to €2,342 million, primarily from higher provisions for pensions and similar obligations. Other receivables and miscellaneous assets declined by €446 million year on year to €886 million, mainly due to the reclassification of loan receivables to the disposal group for the oil and gas business.

Current assets rose by €12,076 million to €43,221 million. This was primarily attributable to reclassifications from noncurrent assets to the disposal groups. The assets of disposal groups totaled €14,607 million as of the year-end, of which €14,088 million was attributable to the discontinued oil and gas business.

Inventories increased by €1,863 million. Of this figure, €887 million resulted from the transaction with Bayer. By contrast, trade accounts receivable declined by €136 million and other receivables and miscellaneous assets by €355 million, mainly due to lower bank acceptance drafts in China and the reclassification to the disposal group for the discontinued oil and gas business. Marketable securities rose by €292 million to €344 million following an optimization of current cash deposits. By contrast, cash and cash equivalents decreased by €4,195 million to €2,300 million, largely as a result of the purchase price payment to Bayer.