15 Financial Liabilities

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€ million

 

2012

 

2011

 

 

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

 

1,142.5

 

920.3

 

222.2

 

720.7

 

617.3

 

103.4

Of which > 5 years

 

 

30.2

 

 

 

281.0

 

Liabilities from lease obligations1

 

45.3

 

38.2

 

7.1

 

51.5

 

44.8

 

6.7

Of which > 5 years

 

 

13.6

 

 

 

17.2

 

Other financial liabilities

 

9.4

 

 

9.4

 

5.7

 

 

5.7

Financial liabilities

 

1,197.2

 

958.5

 

238.7

 

777.9

 

662.1

 

115.8

Of which > 5 years

 

 

43.8

 

 

 

298.2

 

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:

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€ million

 

2012

 

2011

 

 

Currency

 

Carrying amount in € million

 

Term until

 

Currency

 

Carrying amount in € million

 

Term until

 

 

 

 

 

 

 

 

 

 

 

 

 

Development loan

 

EUR

 

200.0

 

2017

 

EUR

 

200.0

 

2017

Development loan

 

EUR

 

200.0

 

2016

 

EUR

 

200.0

 

2016

Loans

 

YEN

 

88.1

 

2017

 

 

 

 

 

Loans

 

EUR

 

50.0

 

2013

 

EUR

 

50.0

 

2013

Club deals

 

CNY

 

80.1

 

2019

 

CNY

 

81.0

 

2019

Club deals

 

CNY

 

41.4

 

2016

 

 

 

 

 

Club deals

 

CNY

 

6.2

 

2013

 

 

 

 

 

Club deals

 

 

 

 

 

 

CNY

 

66.9

 

2012

Promissory notes (German Schuldscheine)

 

EUR

 

150.0

 

2015

 

 

 

 

 

Promissory notes (German Schuldscheine)

 

EUR

 

150.0

 

2017

 

 

 

 

 

Promissory notes (German Schuldscheine)

 

EUR

 

19.0

 

2013

 

EUR

 

19.0

 

2013

Other

 

 

 

10.6

 

2016

 

 

 

 

 

Other

 

 

 

13.4

 

2014

 

 

 

 

 

Other

 

 

 

133.7

 

2013

 

 

 

103.8

 

2013

Total

 

 

 

1,142.5

 

 

 

 

 

720.7

 

 

Fair value

 

 

 

1,182.1

 

 

 

 

 

736.3

 

 

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.

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Principal and Interest Payments

 

 

 

 

 

 

 

 

 

 

 

€ million

 

2013

 

2014

 

2015

 

2016

 

2017
to 2019

 

 

 

 

 

 

 

 

 

 

 

Principal and interest payments

 

222.2

 

27.2

 

178.3

 

231.7

 

483.1

Interest

 

27.5

 

21.2

 

17.5

 

15.2

 

10.9

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:

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€ million

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nominal value

 

Interest

 

Present value

 

Nominal value

 

Interest

 

Present value

 

 

 

 

 

 

 

 

 

 

 

 

 

Minimum lease payment within a year

 

9.0

 

1.9

 

7.1

 

8.9

 

2.2

 

6.7

Minimum lease payment within one and five years

 

29.3

 

4.7

 

24.6

 

33.1

 

5.5

 

27.6

Minimum lease payment over five years

 

14.3

 

0.7

 

13.6

 

18.8

 

1.6

 

17.2

Total

 

52.6

 

7.3

 

45.3

 

60.8

 

9.3

 

51.5

Total expected minimum lease payments from subtenancies

 

 

 

 

2.0

 

 

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.