ANNUAL REPORT 2010/11 - Schumag AG

SCHUMAG AG 25Intangible assets and property, plant and equipmentdecreased only slightly by EUR 0.3 million at adepreciation volume of EUR 2.8 million. Investmentsamounting to a total of EUR 2.5 millionmainly referred to new plants and equipment forthe core division of precision engineering (EUR0.8 million) as well as the construction of a newproduction hall (EUR 0.5 million).To optimize our financing structure, off-balancesheetforms of financing in the form of leasingcontracts have been used since fiscal year2004/05. As of September 30, 2011 the leasingcontracts had a total volume of EUR 1.3 million(previous year EUR 2.6 million) at a term of usually48 to 54 months.Due to the heavily increased business volume thebuild-up of inventories referred in particular tothe finished goods stock of precision engineering(EUR +1.1 million).The effect arising from the change of actuarialassumptions with regard to pension accruals whichis directly set off against shareholders' equitywithout affecting net income amounts to EUR-1.5 million.Trade accounts payable increased in particular dueto the clearly increased business volume as well asthe reduction of cash discounts.The remaining accruals and liabilities increased bya total of EUR 1.0 million. This is in particular dueto the increase of financial liabilities (EUR +3.1million). A contrary effect was in particular causedby consumption and by the release of the commitmentarising from the ERA adjustment fund(EUR -1.5 million).Although receivables amounting to EUR 4.9 million(previous year 2.6 million) were sold to a factoringcompany as of September 30, 2011, our tradereceivables slightly increased by EUR 0.4 milliondue to the heavily increased sales volume in precisionengineering.The shareholders' equity of the Schumag Groupremained almost constant at EUR 13.4 million.The result-related reduction (EUR -1.0 million) wascompensated by the offsetting of actuarial gainsand losses arising from the valuation of pensionaccruals in accordance with IAS 19 (EUR +1.0 million).The capital ratio slightly decreased from 27 %to 26 %.