Asset and Financial Position of Bayer AG

Bayer AG Summary Statements of Financial Position according to the German Commercial Code

 

 

Dec. 31, 2015

 

Dec. 31, 2016

 

 

€ million

 

€ million

ASSETS

 

 

 

 

Noncurrent assets

 

 

 

 

Intangible assets, property, plant and equipment

 

31

 

58

Financial assets

 

43,737

 

49,112

 

 

43,768

 

49,170

Current assets

 

 

 

 

Receivables from subsidiaries

 

3,159

 

4,055

Remaining receivables, inventories, other assets

 

380

 

2,818

Cash and cash equivalents, marketable securities

 

629

 

803

 

 

4,168

 

7,676

Total assets

 

47,936

 

56,846

EQUITY AND LIABILITIES

 

 

 

 

Equity

 

15,032

 

16,565

Provisions

 

2,356

 

1,905

Other liabilities

 

 

 

 

Bonds and notes, liabilities to banks

 

7,203

 

6,673

Payables to subsidiaries

 

22,752

 

31,146

Remaining liabilities

 

593

 

557

 

 

30,548

 

38,376

Total equity and liabilities

 

47,936

 

56,846

Significant increase in total assets – higher financial debt

The asset and liability structure of Bayer AG is dominated by its role in managing the subsidiaries and financing corporate activities as the parent company of the Bayer Group. This is primarily reflected in the high level of investments in affiliated companies and of the receivables from, and payables to, Group companies.

Total Assets

€ billion

Total Assets (bar chart)Total Assets (bar chart)

Total assets of Bayer AG rose by €8.9 billion in 2016 to €56.8 billion. Of the increase, noncurrent assets accounted for €5.4 billion and current assets for €3.5 billion. Property, plant and equipment and intangible assets increased – mainly due to the mergers effected at the start of the year – by €26 million to €58 million, but remained of secondary importance. Financial assets increased by €5.4 billion to €49.1 billion, principally as a result of capital increases at subsidiaries. Investments in affiliated companies continued to account for by far the largest item in total assets, amounting to 84.8% (2015: 89.5%).

Receivables from subsidiaries amounted to €4.1 billion (2015: €3.2 billion), while payables to subsidiaries totaled €31.2 billion (2015: €22.8 billion). These amounts accounted for 7.2% of total assets and 54.9% of total equity and liabilities, respectively. The other receivables reflected in current assets (including deferred charges) increased to €2.8 billion (2015: €0.4 billion), mainly due to investments of €1.9 billion in commercial paper. Cash and cash equivalents also rose due to higher bank deposits, increasing by €174 million to €803 million.

Bayer AG had equity of €16.6 billion (2015: €15.0 billion). The increase represents the excess of the €3,600 million net income for 2016 over the €2,067 million dividend payment for 2015. The equity ratio declined to 29.1% (2015: 31.4%) due to the disproportionate growth in total assets.

Provisions were lower by €0.5 billion at €1.9 billion. The main reason for the decrease was a €665 million decline in pension provisions to €897 million. This was largely the result of higher fund assets, but was also partly attributable to changes in actuarial assumptions regarding the future development of employee compensation and pensions and to a higher discount rate. Provisions for taxes decreased by €123 million to €541 million, while miscellaneous provisions rose by €337 million to €467 million. The main factors here were impending losses from the businesses taken over from Bayer Pharma AG and Bayer CropScience AG by way of business leases as of January 1, 2017, and higher personnel commitments resulting from the mergers with Bayer HealthCare AG and Bayer Technology Services GmbH.

Other liabilities rose by €7.8 billion to €38.4 billion (net of deductible receivables). Financial debt, in particular, increased by €6.2 billion, partly due to the financing for the planned acquisition of Monsanto Company. Whereas external debt in the form of bonds and commercial paper was reduced by €0.6 billion and €0.3 billion, respectively, borrowings from Group companies increased by €7.0 billion. Total financial debt at year end 2016 was €36.5 billion (2015: €30.3 billion). After deduction of cash and cash equivalents of €0.8 billion (2015: €0.6 billion), net debt rose by €6.0 billion to €35.7 billion (2015: €29.7 billion).