15 Financial Liabilities

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€ million

 

2011

 

2010

 

 

Total

 

Of which
noncurrent

 

Of which
current

 

Total

 

Of which
noncurrent

 

Of which
current

 

 

 

 

 

 

 

 

 

 

 

 

 

1

Liabilities from leasing arrangements mainly include liabilities relating to leasing the Burghausen plant’s CCGT power station, as well as for technical facilities.

Liabilities to banks

 

720.7

 

617.3

 

103.4

 

494.8

 

385.6

 

109.2

Of which > 5 years

 

 

281.0

 

 

 

304.7

 

Liabilities from lease obligations1

 

51.5

 

44.8

 

6.7

 

34.4

 

21.5

 

12.9

Of which > 5 years

 

 

17.2

 

 

 

5.1

 

Other financial liabilities

 

5.7

 

 

5.7

 

4.2

 

 

4.2

Financial liabilities

 

777.9

 

662.1

 

115.8

 

533.4

 

407.1

 

126.3

Of which > 5 years

 

 

298.2

 

 

 

309.8

 



The second installment (€200 million) of an investment loan from the European Investment Bank was drawn in the fourth quarter of 2011.

No collateral exists for financial liabilities. Financial liabilities are not secured through liens or similar rights. Some of the liabilities to banks are fixed-interest and others have variable interest rates. Moreover, some of the liabilities to banks were granted on condition that particular covenants be complied with.

The following are the most significant liabilities to banks:

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€ million

 

2011

 

2010

 

 

Currency

 

Carrying
amount
in € million

 

Residual
term
in years

 

Currency

 

Carrying
amount
in € million

 

Residual
term
in years

 

 

 

 

 

 

 

 

 

 

 

 

 

Development loan

 

EUR

 

200.0

 

Up to 6

 

EUR

 

 

Development loan

 

EUR

 

200.0

 

Up to 5

 

EUR

 

200.0

 

Up to 6

Loans

 

EUR

 

50.0

 

Up to 2

 

EUR

 

50.0

 

Up to 3

Club Deals

 

CNY

 

81.0

 

Up to 8

 

CNY

 

59.1

 

Up to 9

Club Deals

 

CNY

 

66.9

 

Up to 1

 

CNY

 

74.6

 

Up to 1

Promissory notes

 

EUR

 

19.0

 

Up to 2

 

EUR

 

29.0

 

Up to 3

Other loans

 

 

 

103.8

 

Up to 2

 

 

 

82.1

 

Up to 1

Total

 

 

 

720.7

 

 

 

 

 

494.8

 

 

As of the reporting date, the future minimum lease payments under finance lease agreements amount to:

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€ million

 

2011

 

2010

 

 

Nominal
value

 

Present
value

 

Nominal
value

 

Present
value

 

 

 

 

 

 

 

 

 

Minimum lease payment within a year

 

8.9

 

6.7

 

14.4

 

12.9

Minimum lease payment within one
and five years

 

33.1

 

27.6

 

19.4

 

16.4

Minimum lease payment over five years

 

18.8

 

17.2

 

5.5

 

5.1

 

 

60.8

 

51.5

 

39.3

 

34.4

Total expected minimum lease payments from subtenancies

 

2.0

 

 

2.5

 

There are no conditional lease payments from finance leases.

The finance lease for the headquarters building in Munich expired in 2011. In November 2011, a new lease agreement was concluded with PK Wacker GSG GmbH & Co. KG, the company that purchased the building. The lease arrangement covers the land and the building. An evaluation has revealed that the new lease is not a finance lease with respect to the land or the building.

Wacker Chemie AG has capitalized a finance lease for the leased CCGT (combined-cycle gas turbine) power station at its Burghausen site. The lease for the power station is due to expire in 2019 at the latest. WACKER has the right to acquire the power station at a price oriented to book values in accordance with German commercial law. If WACKER acquires this power station, it may not be sold to a third party for five years.

WACKER also has leasing agreements for several technical facilities that qualify as finance leases and were capitalized accordingly.

The lease agreements serve to simplify the procurement and financing of operating materials and fixed assets. The long-term commitment that they involve, however, leads to a constant future outflow of cash from which the company cannot extract itself.