Net Assets
WACKER’s total assets were 8 percent lower compared with December 31, 2016. Declining by €625.9 million, they amounted to €6.84 billion as of December 31, 2017 (Dec. 31, 2016: €7.46 billion). The main reasons for this decrease were the deconsolidation of Siltronic and high levels of depreciation, the latter being markedly in excess of capital expenditures. Other factors influencing total assets were a build-up of inventories, a reduction in pension provisions and a substantial decline in financial liabilities. Equity increased strongly due to the Group’s high net income for the year.
Asset and Capital Structure
One of the main reasons for the lower balance sheet total was the reduction in assets and liabilities caused by the deconsolidation of Siltronic. Early in 2017, WACKER sold an initial 6 percent of Siltronic’s shares on the stock exchange, generating proceeds of €87.6 million. After this sale, WACKER held 51.8 percent of Siltronic AG. As the Group still had a majority stake, the transaction’s effects were reflected solely in equity. On March 15, 2017, WACKER sold another 21 percent of the shares in Siltronic and, since it no longer had a controlling interest, deconsolidated the Siltronic Group. The sale generated proceeds of €353.2 million before deduction of transaction costs. WACKER received all proceeds from these transactions in cash. Deconsolidation of Siltronic resulted in the elimination of the following assets and liabilities from WACKER’s balance sheet as of March 31, 2017:
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€ million |
March 31, 2017 |
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Intangible assets |
5.2 |
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Property, plant and equipment |
513.2 |
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Securities |
89.3 |
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Inventories |
144.3 |
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Trade receivables |
128.4 |
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Other assets |
33.4 |
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Cash and cash equivalents |
161.4 |
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Total assets |
1,075.2 |
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Provisions for pensions |
-371.3 |
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Financial liabilities |
-41.9 |
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Trade payables |
-82.3 |
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Other liabilities and provisions |
-126.4 |
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Total liabilities |
-621.9 |
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Sum of assets and liabilities |
453.3 |
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WACKER accounted for its remaining 30.8-percent stake in Siltronic using the equity method. The shares were measured at fair value and recognized in the amount of €518.6 million in the balance sheet. As of December 31, 2017, €554.7 million was recognized for the equity-accounted shares in Siltronic. This amount comprised not only the pro rata share of €52.0 million of the Siltronic Group’s positive net income, but also depreciation of the revalued assets resulting from the purchase price allocation, and consolidation effects.