cash and cash equivalents increased to € 313.7 million
(previous year: € 264.6 million). Total current assets climbed
to € 1,192.6 million (previous year: € 1,131.7 million).
On the liabilities side, changes arose primarily due to
exchange-rate-related reductions in equity. Group equity
decreased by € 80.5 million or - 3 % to € 2,398.9 million (previous
year: € 2,479.4 million). This decline is largely attributable
to negative effects from exchange-rate fluctuations.
The positive result for 2020 had a counteracting effect.
At 73 %, the equity ratio on December 31, 2020 was roughly
on a par with the previous year (previous year: 74 %).
The total non-current liabilities were further increased
by the expansion of pension provisions due to the further
decline in the actuarial interest rate used to discount the corresponding
obligations. On the other hand, the deferred
taxes reported on the liabilities side decreased. In total, non-
current liabilities rose by € 20.4 million to € 445.7 million
(previous year: € 425.3 million).
The total current liabilities reported on the balance
sheet as of December 31, 2020, decreased from € 438.6
million to € 418.5 million. The financial liabilities from
promissory note loans of € 48 million still reported at the end
of 2019 were repaid in full during 2020. Trade accounts
payable increased slightly by € 4.1 million in 2020.
The balance of cash and cash equivalents, short-term
financial assets, current marketable securities, loans granted,
financial liabilities, and employee benefit obligations result-
ed in net financial assets of € 34.2 million at the balance sheet
date of December 31, 2020, after net debt of € 57.7 million
at the end of 2019.
Principles and Goals of Our Financing Strategy
We generally aim to finance our operating business activities
from the cash flow from operating activities. The same
applies to the need for capital expenditure, which caters to
the continual expansion of business activities.
As a result, our financing strategy is oriented to keeping
the cash and cash equivalents generated within the Group
centralized. In addition, a financing framework is sought
that enables ALTANA to flexibly and quickly carry out acquisitions
and even large investment projects beyond the
accustomed scope.
To successfully implement these goals, we manage nearly
all of the Group’s internal financing centrally via ALTANA
AG. To this end, cash pools are set up for the important currency
areas.
There were no more liabilities from the issue of promissory
note loans at the end of 2020. The last outstanding
repayment totaling € 48.0 million was made in November
2020. There is a general syndicated credit facility of
€ 250.0 million. The term of this credit facility will last until
2022 and had not been utilized on the balance sheet date.
This financing structure offers ALTANA the flexibility it
needs to appropriately take advantage of short-term or investment
intensive growth opportunities. The distribution of
the maturities of the financing instruments we use enables
us to optimally control repayment of liabilities with inflows
from operating cash flow.
Off-balance-sheet financing instruments result from
purchasing commitments and guarantees for pension plans.
Details on the existing financing instruments are provided
in the complete Consolidated Financial Statements.
62 Business Development