E_mg_GB_03_vorne-29_3_04

MANAGEMENT SHARE STRATEGY SPECIAL SECTION MANAGEMENT REPORT FINANCIAL STATEMENTS FURTHER INFORMATION
Shareholders’ equity
Economic Environment • Situation of the Company • Organization and Structure • Risk Report • Employees • Performance of the Subgroups • Outlook
Shareholders’ equity at December 31, 2003 decreased by a327.4 million to a1,663.8 million compared
to the end of 2002. This was largely due to the consolidated net loss of a198.6 million reported for
2003. Furthermore, the dividends paid in the second quarter of 2003 for fiscal 2001/2002 (a48.3 million)
and for the short 2002 fiscal year (a11.6 million) reduced shareholders’ equity by an aggregate
a59.9 million. In addition, the persistent weakness of the U.S. dollar and sterling caused shareholders’
equity to contract further. The accumulated other comprehensive loss arising from currency translation
increased by a70.1 million in 2003. Given that the volume of the mg Group’s total assets remained
virtually unchanged, the equity ratio amounted to 24.8 percent at the balance sheet date compared
to 29.7 percent at December 31, 2002.
Cash flow and net position
Net cash provided by the operating activities of continued operations declined year on year by
a41.5 million from a178.3 million to a136.8 million. Including the net loss of a198.6 million
reported for 2003 (2001/2002: net income of a189.6 million), a69.6 million (2001/2002: profit of
a12.2 million) of which was attributable to discontinued operations, however, net cash provided
by operating activities fell only slightly. In particular, other provisions and accrued liabilities grew
by a165.8 million on year-end 2002, mainly owing to the restructuring of the mg Group.
At a173.7 million, net cash used for investing activities remained virtually unchanged year on year
(2001/2002: a178.9 million). Free cash flow came to an outflow of a36.9 million after an outflow of
a0.6 million in 2001/2002.
Net purchases of financial liabilities amounted to a48.0 million. The payment of dividends for
2001/2002 and for the short 2002 fiscal year led to a cash outflow of a59.9 million. Net cash used
for financing activities totaled a10.3 million.
In particular proceeds from the disposal of discontinued non-core operations of GEA and Dynamit
Nobel and changes in the net assets of discontinued operations led to a reduction of only a1.3 million
in unrestricted cash and cash equivalents. Cash and cash equivalents, as reported on the balance
sheet, grew by a6.7 million compared to year-end 2002. The settlement of the Customer Cases II
lawsuit has tied up restricted cash and cash equivalents.
The net position decreased on year-end 2002 by a117.1 million to minus a959.7 million. Liabilities
to banks increased by a42.4 million as a result of the first-time consolidation of four variableinterest
entities in accordance with FIN 46r. At the same time, lease liabilities fell by a27.9 million.
Including these purely accounting-related effects and the total dividends of a59.9 million paid in
2003, the net position of minus a857.4 million remained almost unchanged on year-end 2002
(minus a842.6 million).
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