Financial Position
|
December 31, 2020 |
December 31, 2019 |
||
---|---|---|---|---|
|
Million € |
% |
Million € |
% |
Paid-in capital |
4,291 |
5.3 |
4,291 |
4.9 |
Retained earnings |
37,911 |
47.2 |
42,056 |
48.4 |
Other comprehensive income |
–8,474 |
–10.5 |
–4,850 |
–5.6 |
Noncontrolling interests |
670 |
0.8 |
853 |
1.0 |
Equity |
34,398 |
42.8 |
42,350 |
48.7 |
|
|
|
|
|
Provisions for pensions and similar obligations |
8,566 |
10.7 |
7,683 |
8.8 |
Deferred tax liabilities |
1,447 |
1.8 |
1,764 |
2.0 |
Tax provisions |
587 |
0.7 |
516 |
0.6 |
Other provisions |
1,484 |
1.9 |
1,340 |
1.5 |
Financial indebtedness |
15,819 |
19.7 |
15,015 |
17.3 |
Other liabilities |
1,711 |
2.1 |
1,678 |
1.9 |
Noncurrent liabilities |
29,614 |
36.9 |
27,996 |
32.2 |
|
|
|
|
|
Accounts payable, trade |
5,291 |
6.6 |
5,087 |
5.9 |
Provisions |
2,825 |
3.5 |
2,938 |
3.4 |
Tax liabilities |
988 |
1.2 |
756 |
0.9 |
Financial indebtedness |
3,395 |
4.3 |
3,362 |
3.9 |
Other liabilities |
3,440 |
4.3 |
3,427 |
3.9 |
Liabilities of disposal groups |
341 |
0.4 |
1,034 |
1.2 |
Current liabilities |
16,280 |
20.3 |
16,604 |
19.1 |
Total equity and liabilities |
80,292 |
100.0 |
86,950 |
100.0 |
Equity and liabilities
- Equity ratio of 42.8%, compared with 48.7% in previous year
- Net debt declines to €14,677 million
Equity decreased by €7,952 million compared with the previous year to €34,398 million. Retained earnings declined by €4,145 million to €37,911 million. This was the result of dividend payments for 2019 and negative net income for 2020. Other comprehensive income amounted to –€8,474 million, after –€4,850 million in the previous year. The decrease was primarily due to currency effects and actuarial losses.
The equity ratio decreased from 48.7% to 42.8%.
Compared with the end of 2019, noncurrent liabilities rose by €1,618 million to €29,614 million. This was primarily attributable to the increase in provisions for pensions and similar obligations from €7,683 million to €8,566 million, mainly as a result of slightly lower discount rates in all relevant currency zones.
In addition, noncurrent financial indebtedness rose by €804 million to €15,819 million. This was mainly due to the issue of two eurobonds (including one green bond) in the amount of €1 billion each, as well as new bank loans taken out for approximately €500 million. The reclassification of a eurobond with a carrying amount of around €1 billion to current financial indebtedness and the early repayment of U.S. bonds worth around €400 million had an offsetting effect. At €1,484 million, other provisions were €144 million below the figure as of December 31, 2019.
Deferred tax liabilities declined from €1,764 million in the previous year to €1,447 million, while tax provisions were up €71 million from the 2019 year-end figure, at €587 million.
Current liabilities declined by €324 million to €16,280 million, primarily due to the derecognition of the disposal group for the construction chemicals business.
The €113 million year-on-year decrease in current provisions to €2,825 million largely resulted from lower personnel obligations. This was partially offset by higher provisions for restructuring measures. Tax liabilities rose by €232 million compared with the previous year to €988 million. Trade accounts payable increased by €204 million to €5,291 million.
At €3,395 million, current financial indebtedness was €33 million above the prior-year figure. This was mainly due to the above-mentioned reclassification of the eurobond from noncurrent to current financial indebtedness and the issue of commercial paper. The increase was largely offset by the planned repayment of eurobonds worth around €1,300 million.
Net debt declined by €829 million compared with December 31, 2019, to €14,677 million as cash and cash equivalents rose at a faster rate than financial indebtedness.
For more information on the development of the balance sheet, see the Ten-Year Summary
|
December 31, |
December 31, |
---|---|---|
Noncurrent financial indebtedness |
15,819 |
15,015 |
+ Current financial indebtedness |
3,395 |
3,362 |
Financial indebtedness |
19,214 |
18,377 |
– Marketable securities |
207 |
444 |
– Cash and cash equivalents |
4,330 |
2,427 |
Net debt |
14,677 |
15,506 |