Welcome to LANXESS Interim Report!

Skip to:zur Hauptnavigation,zum Inhaltsbereich,zur Suche

Structure of the statement of financial position

As of June 30, 2013, the LANXESS Group had total assets of €7,268 million, down €251 million, or 3.3%, from €7,519 million on December 31, 2012. The main reasons for this decrease were the lower levels of cash and cash equivalents and near-cash assets. These were partly offset by increases in property, plant and equipment and trade receivables.

Non-current assets rose during the first half-year by €73 million to €3,820 million. Intangible assets and property, plant and equipment increased by €85 million to €3,469 million. Cash outflows for purchases of property, plant, equipment and intangible assets, at €252 million in the first half of 2013, were slightly ahead of the prior-year period’s €229 million. Depreciation and amortization in the first half totaled €218 million, compared with €181 million in the prior-year period. The first-time full consolidation of LANXESS-TSRC (Nantong) Chemical Industrial Co., Ltd., Nantong, China, previously accounted for using the equity method, and the first-time consolidation of PCTS Specialty Chemicals Pte. Ltd., Singapore, which was acquired in April, led to additions in the mid-double-digit million range. The carrying amount of investments accounted for using the equity method decreased accordingly by €8 million. The ratio of non-current assets to total assets was 52.6%, up from 49.8% on December 31, 2012.

Current assets amounted to €3,448 million, down by €324 million or 8.6% from December 31, 2012. Inventories remained level with year-end 2012, at €1,527 million. Trade receivables rose by €95 million, or 8.5%, to €1,212 million. The total of cash and cash equivalents and near-cash assets decreased by €426 million to €371 million, mainly due to the sale of money market funds. The ratio of current assets to total assets was 47.4%, against 50.2% as of December 31, 2012.

The LANXESS Group has significant internally generated intangible assets that are not reflected in the statement of financial position because of accounting rules. These include the brand equity of LANXESS and the value of the Group’s other brands. A variety of measures were deployed in the reporting period to continually enhance these assets. These measures contributed to our continued success in positioning the business units in the market.

Our established relationships with customers and suppliers also constitute a significant intangible asset, which cannot, however, be reflected in the statement of financial position. The long-standing, trust-based partnerships with customers and suppliers, underpinned by consistent service and product quality, enable us to set ourselves apart from our competitors. Our competence in technology and innovation, also a valuable asset, is rooted in our specific knowledge in the areas of research and development and custom manufacturing. It enables us to generate significant added value for our customers.

Our commercial success is also founded on the knowledge and experience of our employees. In addition, we have sophisticated production and business processes that create competitive advantages for us in the relevant markets.

Equity decreased by €132 million, or 5.7%, compared with December 31, 2012, to €2,198 million, predominantly due to the dividend payment and the net negative effect of currency translation differences. The ratio of equity to the Group’s total assets was nearly unchanged at 30.2% as of June 30, 2013, against 31.0% as of December 31, 2012.

Non-current liabilities fell by €462 million to €3,097 million as of June 30, 2013. This was mainly attributable to other non-current financial liabilities, which at €1,681 million were €486 million lower than at December 31, 2012. The decrease was largely the result of the reclassification into current financial liabilities of a Eurobond maturing in April 2014. Provisions for pensions and other post-employment benefits increased by €28 million compared to the end of 2012, to €921 million. This increase was mainly due to additional vested rights in the reporting period and interest effects. The ratio of non-current liabilities to total assets was 42.6%, down from 47.3% as of December 31, 2012.

Current liabilities came to €1,973 million, up by €343 million or 21.0% from December 31, 2012. This increase was predominantly the result of the reclassification into current financial liabilities of the Eurobond maturing in April 2014. It was partly offset by the drop of €138 million in trade payables to €657 million and the decrease of €74 million in other current provisions to €366 million. The ratio of current liabilities to total assets was 27.1% as of June 30, 2013, against 21.7% at the end of 2012.

Service