100 % more pressure - MTU Aero Engines

104
The equity ratio increased
to 24.2 % in 2011.
further information
on page 239 ff.
further information
on page 71
Non-current liabilities in the amount of € 416.0 million (2010: € 547.6 million) principally comprised
financial liabilities amounting to € 53.4 million (2010: € 204.7 million) and deferred tax liabilities of
€ 229.6 million (2010: € 231.5 million).
The combined total of equity and non-current debt decreased in the financial year 2011 by € 45.4
million (2.4 %) to € 1,870.5 million (2010: € 1,915.9 million). This means that 99.2 % (2010: 104.5 %)
of the company’s non-current assets are matched by financing funds available on a medium- to
long-term basis.
Current debt rose by € 357.9 million (23.7 %) to € 1,868.1 million, mainly as a result of the
reclassification of the convertible bond, which matures on February 1, 2012, from non-current to
current liabilities. The nominal value of the convertible bond at 31 December, 2010, was € 148.6
million. Provisions and income tax liabilities fell by € 57.1 million (19.3 %) to € 238.4 million. This item
includes pension provisions amounting to € 28.5 million (2010: € 24.2 million), current other provisions
amounting to € 199.9 million, which decreased by € 0.2 million (0.1 %) compared with the previous
year, and income tax payable, which fell from € 71.2 million to € 10.0 million. Current liabilities in-
creased by € 415.0 million (34.2 %) to € 1,629.7 million. These include obligations toward employees
totaling € 41.3 million (2010: € 39.2 million), financial liabilities amounting to € 208.2 million (2010:
€ 57.2 million), trade payables amounting to € 592.7 million (2010: € 424.5 million), the balance
of construction contract payables after deduction of the corresponding receivables amounting to
€ 715.0 million (2010: € 666.3 million), and sundry other identifiable obligations.
Within the structure of equity and financial debt, the equity ratio increased by 0.3 percentage points
to 24.2 % (2010: 23.9 %), while short-term debt capital increased by 5.9 percentage points. Overall,
there has been a shift in the structure away from medium- and long-term toward more short-term
debt capital.
OFF-Balance-sheet assets
The group has assets that are not included in the balance sheet. These mainly relate to certain
leased or rented goods (under an operating lease). Further explanatory comments are provided
in Note 42.1.1. to the consolidated financial statements (Obligations arising from operating lease
arrangements). The most important intangible assets include the MTU brand, which has continually
grown in strength in the year under review, and MTU’s portfolio of intellectual property, which
contains over 2,800 patents and other forms of industrial property and serves to protect the
company’s technology rights. More detailed information on MTU’s patent portfolio is provided in
Section 1.4. (Research and development) under the subheading “Safeguarding technological
assets”. Significant value can also be attributed to the company’s long-established and smoothly
running risk- and revenue-sharing partnerships with the world’s leading engine manufacturers Pratt
& Whitney, General Electric and Rolls-Royce, and with Avio, Snecma Moteurs and Volvo Aero. One
of the advantages of these partnerships is that they assure stability in a changing business
environment and reduce entrepreneurial risks.
They also give MTU access to the full global potential of the commercial engine market. Another
advantage of these intensive collaborations is that they frequently give rise to mutually beneficial
research and development projects in which know-how and development capacity are pooled.