Schaeffler applies cookies to secure an optimal use. With the further use of this website you accept the application of cookies. More Information
The Schaeffler Group’s total assets decreased by EUR 916 m or 7.3 % to EUR 11,564 m (prior year: EUR 12,480 m) in 2016.
in € millions
Non-current assets declined by EUR 1,459 m to EUR 5,979 m as at December 31, 2016 (prior year: EUR 7,438 m), primarily due to the prepayment of a loan of EUR 1,773 m that was receivable from the company’s shareholder IHO Verwaltungs GmbH. The decrease was partially offset by a EUR 327 m increase in property, plant and equipment. Additions to intangible assets and property, plant and equipment amounted to EUR 1,115 m and were primarily invested in expanding capacity and in equipment and machinery for product start-ups in the Automotive division. The Automotive division accounted for approximately 81 % of total additions for the reporting period.
Current assets increased by EUR 543 m to EUR 5,585 m (prior year: EUR 5,042 m) in 2016. The increase was largely attributable to the increase in cash and cash equivalents (see “Cash flow”, pp. 49 et seq.). Higher inventories and trade receivables also contributed to the increase in current assets.
Shareholders’ equity including non-controlling interests rose by EUR 429 m to EUR 1,997 m as at December 31, 2016 (prior year: EUR 1,568 m). Net income of EUR 872 m increased shareholders’ equity. The increase was partially offset by EUR 328 m in dividends paid to Schaeffler AG’s shareholders. Shareholders’ equity was also reduced by an increase in provisions for pensions and similar obligations due to the reduction in the average discount rate to 2.1 % (December 31, 2015: 2.6 %). The equity ratio was 17.3 % at December 31, 2016 (December 31, 2015: 12.6 %).
Non-current liabilities declined by EUR 1,783 m to EUR 6,361 m (prior year: EUR 8,144 m), largely due to the redemption in full of a USD bond series with a principal of USD 850 m and two EUR bond series with a principal of EUR 500 m each completed in October 2016. The redemptions were largely funded using the proceeds of the prepayment in full of a loan receivable from the company’s shareholder IHO Verwaltungs GmbH as discussed above. Voluntary partial prepayments of institutional loan tranches during the first half of 2016 also reduced non-current financial debt. These decreases were partially offset by an increase in provisions for pensions and similar obligations by EUR 240 m, mainly as a result of lower discount rates.
Current liabilities increased by EUR 438 m to EUR 3,206 m (prior year: EUR 2,768 m). The increase was largely attributable to higher trade payables and higher other financial liabilities.
The Schaeffler Group’s significant off-balance sheet commitments include obligations under operating rental and lease agreements and contingent liabilities. The Schaeffler Group’s obligations under non-cancellable operating rental and lease agreements totaled EUR 123 m at December 31, 2016 (prior year: EUR 126 m); obligations under finance leases were insignificant.