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11) Liabilities
Financial liabilities at December 31, 2003 consisted of:
12/31/2003 12/31/2002
u ’000 t ’000
Bonds 300,000 298,000
thereof maturing in up to 1 year (–) (–)
thereof maturing in 5 years or later (–) (–)
Liabilities to banks 843,797 774,097
thereof maturing in up to 1 year (200,300) (122,987)
thereof maturing in 5 years or later (65,546) (52,361)
Liabilities from capital lease obligations 98,210 133,543
thereof maturing in up to 1 year (13,937) (19,375)
thereof maturing in 5 years or later (45,505) (53,277)
Promissory notes payable 2,477 2,532
thereof maturing in up to 1 year (2,311) (2,532)
thereof maturing in 5 years or later (–) (–)
Total 1,244,484 1,208,172
Of the total financial liabilities, a306.425 million (prior year: a309.601 million) relates to Dynamit
Nobel. These are broken down as follows:
12/31/2003 12/31/2002
u ’000 t ’000
Liabilities to banks 219,638 192,695
Liabilities from capital lease obligations 86,093 116,145
Promissory notes payable 694 761
Total 306,425 309,601
Bonds relate to a bond issued by mg technologies finance B.V., Rotterdam, and guaranteed by mg
technologies ag. The interest coupon on the bond is 7.25% (prior year: 6.75%) p.a. The increase
in the coupon is due to the credit rating downgrade by rating agency Moody’s Investors Service in
October 2003.
The interest paid on liabilities to banks mainly varied between 4% and 6% p.a.
The increase in liabilities to banks and the decrease in liabilities from capital leases essentially arise
from the first-time consolidation of the four leasing companies belonging to Dynamit Nobel in accordance
with FIN 46r (for further information see Note D) ‘Scope of Consolidation’). As a result of
this consolidation, liabilities to banks increased year on year by a42.358 million and liabilities from
capital leases decreased year on year by a27.909 million.
Total financial liabilities of a43.156 million (prior year: a53.479 million) are collateralized by
mortgages.
Cash and cash equivalents of a26.3 million (prior year: a114.6 million) were used to temporarily
repay medium-term bank loans beyond the balance sheet date. Appropriate loans were utilized again
in January 2004 and 2003.
The fair value of financial liabilities at the balance sheet date came to a1.264843 billion (prior year:
a1.209707 billion).