15 Financial Liabilities

As part of its multiyear financing strategy, WACKER issued four promissory notes (German Schuldscheine) in the first quarter of 2012. These notes are for a total amount of €300 million and have maturities of three and five years. In addition, a long-term loan of 10 billion Japanese yen was raised in the second half of 2012. Both these loans were concluded on customary market terms and conditions.

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 liabilities to banks comprise the following:

As in the prior year, the development loans include variable-interest-rate loan amounts. The variable portion totals €200 million and has a residual term until 2016. In 2012, the loans include variable-interest-rate loan amounts of €88.1 million with a residual term until the end of 2017. The promissory notes (German Schuldscheine) include variable loan amounts of €101.0 million with a residual term until 2015 and of €39.0 million with a residual term until 2017. As in the prior year, the club deals and other loans have variable interest rates.

The carrying amounts of the current financial liabilities correspond to the repayment amounts. With the exception of the club deals, all the loans fall due on maturity. Other liabilities to banks mainly contain working capital lines of credit.

The following table shows the future principal and interest payments.

There are also short- and long-term unused credit lines amounting to €837.6 million (2011: €774.3 million), all conditions for the utilization of which have been met.

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

There are no conditional lease payments from finance leases.

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. Here, too, the company in some cases has rights of pre-emption and lease rollover options.

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.