Notes to the Consolidated Financial Statements

1. Basic information and principles of the report

2. Changes in Group structure

3. Summary of significant accounting policies

4. Risk assessment and management

5. Management of capital

The objectives of the Group regarding the management of the capital structure are as follows:

  • ensure sufficient liquidity to cover all liabilities
  • guarantee an attractive return on equity (ROE) and return on invested capital (ROIC)
  • ensure a sufficient debt capacity and credit rating
  • ensure an attractive distribution policy

in order to maintain or change the capital structure, the following measures can be taken:

  • adjustment of the distribution policy
  • share buyback programs
  • capital increases
  • incur or repay debt

Further measures to guarantee an efficient use of the invested capital and therefore also to achieve attractive returns are:

  • active management of net working capital
  • demanding objectives regarding the profitability of investments
  • clearly structured innovation process

The invested capital is composed of net working capital, property, plant and equipment, goodwill, and intangible assets.

The periodic calculation and reporting of the following key figures to the management ensures the necessary measures in connection with the capital structure can be taken in a timely manner.

The relevant values as of December 31 are outlined below:

  2014 2013
Debt 10.5 11.7
Liquid funds and marketable securities 749.7 612.8
Net debt -739.2 -601.1
Equity 1,717.1 1,664.1
Net debt/equity -43.0% -36.1%
Return on equity (ROE)    
Equity (rolling) 1,706.7 1,546.2
Net income 498.6 435.8
ROE 29.2% 28.2%
Return on invested capital (ROIC)    
Invested capital (rolling) 1,404.5 1,366.0
Net operating profit after taxes (NOPAT) 497.9 437.9
ROIC 35.5% 32.1%

6. Marketable securities

7. Trade accounts receivable

8. Other current assets and current financial assets

9. Inventories

10. Property, plant and equipment

11. Other non-current assets and non-current financial assets

12. Goodwill and intangible assets

13. Short-term debt

14. Other current provisions and liabilities

15. Long-term debt

16. Derivative financial instruments

17. Retirement benefit plans

18. Participation plans

19. Deferred tax assets and liabilities

20. Other non-current provisions and liabilities

21. Contingencies

22. Capital stock and treasury shares

23. Earnings per share

24. Other operating expenses, net

25. Financial result, net

26. Income tax expenses

27. Research and development expenditures

28. Cashflow figures

29. Segment reporting

30. Related party transactions

31. Foreign exchange rates

32. Subsequent events

33. Additional disclosures on financial instruments

34. Group companies as of December 31, 2014