Technologies · Systems · Solutions - Dürr

100
90
80
70
60
50
40
30
20
10
Financial liabilities,
including the bond
December 31, amounts in %
71.5
28.5
2004 2003
71.4
28.6
47.8
52.2
Short term
Group
Continuing operations
Medium and long term
Group
Continuing operations
47.6
52.4
Consolidated management report
Financial position
Long-term financing secured
61
The Dürr Group put its financing structure on a new foundation at the start of July
2004. A corporate bond in the nominal amount of € 200 million and a syndicated loan
in the amount of € 400 million now provide us with secure financing for the long
term.
The fixed-rate bond matures in 2011 and has an interest coupon of 9.75%. The issue
price was 96.3%. The interest payments are made every six months on January 15
and July 15. The syndicated loan is composed of a revolving credit line in the amount
of € 200 million and a guarantee facility of the same volume. Both tranches have a
term of five years. The corporate bond is subordinated in relation to the syndicated
loan, which explains the higher rate of interest compared with a bank loan.
With the two interlinked transactions, Dürr has proactively diversified its financing
structure. We have used the proceeds to considerably reduce our short-term liabilities
to banks and to repay a note loan that became due in November 2004. This has
increased the time-to-maturity factor of our financial liabilities (including the bond).
The medium- and long-term portion – with reference to continuing operations – was
71.4% on the balance sheet date of December 31, 2004 (previous year: 47.6%).
Balance sheet: Equity ratio increased
As of December 31, 2004, total assets in continuing operations shrunk by 14.7% to
€ 1,288.5 million (December 31, 2003: € 1,509.9 million).
Non-current assets in continuing operations amounted to € 560.1 million (December 31,
2003: € 559.3 million), equivalent to 43.5% of total assets (December 31, 2003: 37.0%).
At € 15.5 million, capital expenditures on property, plant and equipment were only
moderately higher than in the previous year (€ 13.4 million). Combined with depreciation
and currency effects, this resulted in a decline in property, plant and equipment
to € 148.2 million (December 31, 2003: € 159.4 million). Goodwill and other intangible
assets accounted for 26.8%, or € 345.1 million, of total assets in continuing operations
(December 31, 2003: 21.8%, or € 329.4 million). Goodwill increased to € 308.8 million
from € 297.3 million on the previous year’s balance sheet date. The rise was largely due
to increasing Dürr’s stake in Schenck Australia Pty. Ltd. to 100% and the squeeze-out
at Carl Schenck AG. The impairment test for goodwill for continuing operations did not
require a valuation allowance.
Current assets in continuing operations shrank by € 222.3 million to € 728.4 millon and
accounted for 56.5% of total assets (December 31, 2003: 63.0%). As part of Group-wide
cash pooling, we reduced cash and cash equivalents to € 46.4 million and hence to our
target level (December 31, 2003: € 194.9 million). Trade receivables declined to € 563.5
million from € 619.9 million on the previous year’s balance sheet.