Annual report 2014

Haniel Group: Assets and liabilities

The Haniel Group has further strengthened its balance sheet structure and significantly raised its equity ratio. This was due to the disposal of the Celesio division, which significantly reduced total assets. In addition, a portion of the proceeds was used to reduce indebtedness by repurchasing and redeeming outstanding bonds.

LOWER TOTAL ASSETS

The disposal of Celesio reduced the total assets of the Haniel Group from EUR 13,387 million as at 31 December 2013 to EUR 6,446 million as at 31 December 2014. This manifested above all in current assets, which fell from EUR 8,620 million to EUR 1,662 million: As at 31 December 2013, the Celesio division’s assets were still included as assets held for sale, which have now been completely disposed of by way of the sale. Current assets increased due to the fact that a portion of the sale proceeds flowed to current financial assets. In addition, the ELG division’s inventories and trade receivables increased, particularly as a result of higher commodities prices. Non-current assets increased from EUR 4,767 million to EUR 4,784 million. The growth resulted from newly acquired mid-term financial assets with a maturity of more than twelve months, in which Haniel has temporarily invested following the Celesio disposal. A decline in the carrying amount of investment in METRO AG, which is accounted for using the equity method, reduced total assets.

EQUITY RATIO INCREASED SHARPLY

Equity fell from EUR 4,556 million as at 31 December 2013 to EUR 3,973 million as at 31 December 2014. This is because the disposal of the Celesio divisions resulted in the corresponding non-controlling interests also leaving the Group. Nonetheless, the equity ratio increased significantly due to the lower total assets: this figure increased from 34 per cent to 62 per cent, thus underscoring the Group’s investment potential. In contrast, non-current liabilities declined from EUR 2,240 million to EUR 1,574 million. The decisive factor here was that the Haniel Holding Company used some of the proceeds from the disposal of the Celesio division for the early repurchase of outstanding bonds. Current liabilities also fell, in particular due to the disposal of liabilities of the sold Celesio division as well as the scheduled repayment of a bond of the Haniel Holding Company, falling from EUR 6,591 million to EUR 899 million. Thus the Group successfully further strengthened its balance sheet structure as at 31 December 2014.

INCREASE IN RECOGNISED INVESTMENTS

Despite the disposal of Celesio, the Haniel Group’s recognised investments increased from EUR 309 million in the previous year to EUR 357 million in financial year 2014. The elimination of the Celesio division’s investments was more than compensated for by extensive investments by the Haniel Holding Company in mid-term financial assets with a term of more than one year. The remaining recognised investments are attributable in particular to the purchase of textiles and towel dispensers intended for rental and the expansion of the laundry network in the CWS-boco division.