2005-2006 Financial Statements and Management Report

46
INTANGIBLE ASSETS
INCLUDE GOODWILL FROM
ACQUISITIONS.
During fiscal year 2004/2005 cash flows from financing activities of discontinued operations came
to €(11) million.
ANALYSIS OF BALANCE SHEET STRUCTURE
The following balance sheet presentation includes assets and liabilities held for sale which are reported
separately in the Group’s consolidated balance sheets.
The balance sheet total increased by €429 million to €35,730 million.
Significant balance sheet line items, particularly inventories, trade accounts receivable and payable
and total equity, increased compared with September 30, 2005. This is mainly the result of further
price increases for raw materials, especially for nonferrous metals, and the cyclical business expansion.
Property, plant and equipment and financial liabilities declined due to measures taken to reduce
capital employed and disposals. Shifts in exchange rate relations, primarily the relation of the us dollar
to the euro, which increased from 1.205 €/us dollar as of September 30, 2005 to 1.267 €/us dollar as
of September 30, 2006, led to a decrease in the balance sheet total by €219 million. Deferred tax
assets decreased whereas current income tax liabilities increased slightly and deferred tax liabilities
increased significantly.
The increase in intangible assets by €110 million resulted primarily from additions to goodwill due to
business combinations mainly within the Services segment and from the capitalization of development
costs.
The initiated disposal of the North American body and chassis operations as well as the poor economic
situation in parts of the Body business unit of the Automotive segment led to impairments of property,
plant and equipment. Additionally, the fire damage in the Stainless segment reduced property, plant
and equipment.
The increase in investments in companies accounted for using the equity method mainly resulted
from the acquisition of Atlas Elektronik in the amount of €93 million.
Inventories climbed by €401 million to €7,410 million. This increase resulted primarily from the further
rise in raw material prices, especially for nickel, as well as from increased quantities in the Services
segment caused by sales expansion.
Trade accounts receivable as of September 30, 2006 were up by €334 million compared with September
30, 2005. The amount of sold trade accounts receivable as of September 30, 2006 increased
only slightly (€44 million) compared with the previous year. The increase was attributable to sales
expansion in terms of volume and price in all segments apart from Automotive and Technologies.
Technologies posted a decrease in trade accounts receivable due to disposals of activities amounting
to €207 million.
Cash outflows for acquisitions, stock repurchases, dividends and the repayment of financial liabilities
exceeded cash inflows from operating activities, resulting in a decrease in cash and cash equivalents
by €268 million to €4,447 million.