Asset and Capital Structure of the Bayer Group

Bayer Group Summary Statements of Financial Position

 

 

Dec. 31, 2016

 

Dec. 31, 2017

 

Change

 

 

€ million

 

€ million

 

%

Noncurrent assets

 

51,791

 

45,014

 

−13.1

Assets held for sale

 

10

 

2,081

 

.

Other current assets

 

30,437

 

27,992

 

−8.0

Current assets

 

30,447

 

30,073

 

−1.2

Total assets

 

82,238

 

75,087

 

−8.7

Equity

 

31,897

 

36,861

 

+15.6

Noncurrent liabilities

 

31,804

 

24,633

 

−22.5

Current liabilities

 

18,537

 

13,482

 

−27.3

Liabilities directly related to assets held for sale

 

.

 

111

 

.

Total current liabilities

 

18,537

 

13,593

 

−26.7

Liabilities

 

50,341

 

38,226

 

−24.1

Total equity and liabilities

 

82,238

 

75,087

 

−8.7

Substantial increase in equity, while total assets decline

Total Assets
€ billion

Total Assets (bar chart)

Total assets as of December 31, 2017, declined by €7.2 billion to €75.1 billion, mainly as a result of the deconsolidation of Covestro. As part of that deconsolidation, assets of €11.2 billion were derecognized in the respective line items in the statements of financial position. At the same time, the remaining investment in the Covestro Group was recognized at its fair value of €3.6 billion. Noncurrent assets decreased by €6.8 billion to €45.0 billion. Total current assets declined by €0.4 billion to €30.1 billion. The assets held for sale in connection with the planned acquisition of Monsanto increased by €2.1 billion.

Equity rose by €5.0 billion compared with December 31, 2016, to €36.9 billion. The income after income taxes of €8.1 billion had a positive effect. Currency effects recognized outside profit and loss reduced equity by €2.2 billion, and the dividend payment by Bayer AG also reduced equity by €2.2 billion. An increase of €0.7 billion – recognized outside profit or loss – came from the reduction in post-employment benefit obligations. Effects of the reduction in the interest in Covestro recognized directly in equity and the deconsolidation of this company increased equity by €0.7 billion. The equity ratio (equity coverage of total assets) as of December 31, 2017, was 49.1% (2016: 38.8%).

Liabilities as of December 31, 2017, decreased by €12.1 billion to €38.2 billion. As part of the deconsolidation of Covestro, liabilities of €6.0 billion were derecognized in the corresponding line items in the statements of financial position. Provisions for pensions and other post-employment benefits decreased to €8.0 billion, with €1.2 billion of this due to the deconsolidation of Covestro, a further €1.2 billion to actuarial gains and €0.5 billion to the transfer of Covestro shares to Bayer Pension Trust e.V. Financial liabilities declined by €5.2 billion to €14.4 billion, with a reduction of €1.8 billion due to the deconsolidation of Covestro.

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