Net assets and capital structure
The Schaeffler Group had EUR 12,362 m in total assets as at December 31, 2018 (prior year: EUR 11,537 m).
Consolidated statement of financial position (abbreviated)
in € millions.
Non-current assets rose by EUR 650 m to EUR 6,828 m as at December 31, 2018 (prior year: EUR 6,178 m), primarily due to property, plant and equipment increasing by EUR 453 m and investments in equity-accounted investees by EUR 157 m. The increase in equity-accounted investees was largely due to the newly established joint venture Schaeffler Paravan Technologie GmbH & Co. KG. In addition, deferred tax assets were up EUR 28 m. Furthermore, the initial application of IFRS 9 has increased other investments by EUR 24 m. Negative changes in the fair value of non-current derivatives had an offsetting effect.
Current assets increased by EUR 175 m to EUR 5,534 m (prior year: EUR 5,359 m) in 2018. The increase was largely attributable to an increase in inventories and higher cash and cash equivalents (see “Cash flow and liquidity”, pp. 61 et seq.). Furthermore, the initial application of IFRS 15 resulted in the recognition of EUR 45 m in contract assets (prior year: EUR 0 m). Other assets and other financial assets increased as well. These increases were partially offset by a reduction in trade receivables. As at December 31, 2018, trade receivables with a carrying amount of EUR 166 m (prior year: EUR 123 m) net of retained credit risk had been sold under the ABCP program (asset-backed commercial paper).
Shareholders’ equity including non-controlling interests rose by EUR 479 m to EUR 3.060 m as at December 31, 2018 (prior year: EUR 2,581 m). Net income of EUR 895 m increased shareholders’ equity. The increase was partially offset by EUR 361 m in dividends paid to Schaeffler AG’s shareholders. IFRS 9 and IFRS 15, the new financial reporting standards applicable effective in 2018, increased other reserves by EUR 34 m. Reductions in accumulated other comprehensive income and, therefore, shareholders’ equity were largely due to the impact of cash flow hedges and of adjustments to pensions and similar obligations. The equity ratio was 24.8% as at December 31, 2018 (December 31, 2017: 22.4%).
Non-current liabilities rose by EUR 136 m to EUR 5,780 m as at December 31, 2018 (prior year: EUR 5,644 m). The increase was mainly attributable to the utilization of an additional EUR 94 m of the capital investment loan and an increase in pensions and similar obligations by EUR 49 m.
Current liabilities increased by EUR 210 m to EUR 3,522 m (prior year: EUR 3,312 m) as at December 31, 2018. The increase was primarily caused by EUR 160 m in drawings under the Revolving Credit Facility and higher trade payables. The initial recognition of EUR 45 m (December 31, 2017: EUR 0 m) in contract liabilities in accordance with IFRS 15 increased current liabilities as well, as did a higher balance of other financial liabilities resulting from changes in the fair value of derivatives. These increases were partially offset by a reduction in income tax payables and other 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-cancelable operating rental and lease agreements totaled EUR 141 m at December 31, 2018 (prior year: EUR 133 m); obligations under finance leases were insignificant.