ANNUAL REPORT 2011

Condensed consolidated balance sheet

CHF m 31.12.2011 31.12.2010 Change in %
ASSETS
Non-current assets 5 178 2 416 114
Intangible assets 1 762 269 555
Property, plant, and equipment 2 494 1 669 49
Financial assets 28 18 55
Other non-current assets 702 341 106
Deferred income tax assets 192 119 61
Current assets 3 901 3 494 12
Inventories 1 151 800 44
Trade receivables 1 134 985 15
Other assets and receivables 417 993 – 58
Cash and cash equivalents 1 199 716 67
Non-current assets held for sale 2 11 – 82
Total asset 9 081 5 921 53
 
EQUITY AND LIABILITIES
Equity
Shareholders´equity 2 933 1 759 67
Non-controlling interests 93 47 98
Total equity 3 026 1 806 68
 
Liabilities
Non-current liabilities 2 904 2 153 35
Financial debts 1 835 1 305 41
Retirement benefit obligations 538 443 21
Deferred income tax liabilities 289 85 240
Provision for non-current liabilities 242 320 - 24
Current liabilities 3 151 1 962 61
Financial debts 1 139 240 374
Provision for current liabilities 364 310 17
Trade and other payables 1 325 1 170 13
Current income tax liabilities 323 242 33
 
Total equity and liabilities 9 081 5 921 53
Balance sheet structure changed significantly due to expansion

As of 31 December 2011, the Clariant Group’s total assets of CHF 9.081 billion were significantly higher than the value a year earlier of CHF 5.921 billion. The increase was based on first-time consolidation of the assets and goodwill of the companies acquired in 2011, namely Süd-Chemie, Prairie Petro-Chem, Octagon Process, and Italtinto. Exchange rate effects also resulted in significant changes in various balance sheet items.

Cash and cash equivalents totaled CHF 1.199 billion at the end of 2011, compared with CHF 716 million twelve months earlier. The change within the reporting period is based on the issue of two bonds totaling CHF 300 million in May and July 2011, the issue of two certificates of indebtedness totaling EUR 365 million and CHF 400 million from an acquisition bridge facility, as well as outflows of liquidity associated with the acquisitions mentioned above. By contrast, the total cash position including near cash assets decreased to CHF 1.234 billion year on year, from CHF 1.419 billion, due to acquisitions.

Clariant Group's total equity increased to CHF 3 026 million at the end of 2011 mainly due to the capital increase totaling CHF 1 111 million required for the Süd-Chemie acquisition. The equity ratio of 33.3 percent was above the prior-year level of 30.5 percent.

The Süd-Chemie transaction was also responsible for most of the increase in net financial debt from CHF 126 million at the end of 2010 to CHF 1 740 million as of 31 December 2011. This item includes current and non-current liabilities, cash and cash equivalents, and near cash assets. The gearing ratio, which compares the level of net financial debt to equity, therefore rose to 58 percent from 7 percent as of 31 December 2010.

Broadly based financing

Clariant also had a very sound financial basis as of the end of 2011. The company relies on different types of financing instruments. In May the company issued two bonds in the Swiss franc domestic bond market: one with a nominal value of CHF 150 million that was increased by CHF 50 million in July, with a coupon of 2.75 percent and a four-and-a-half-year maturity (2015); and the other with a nominal value of CHF 100 million, a coupon of 3.125 percent and a six-year maturity (2017). By issuing two certificates of indebtedness in October 2011 totaling EUR 365 million with maturities ranging between three and four-and-a-half years, Clariant continued to improve the maturity profile of its borrowed funds.

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