Trends: Equity and Liabilities
|
|
|
|
|
€ million |
|
2021 |
|
2020 |
|---|---|---|---|---|
|
|
|
|
|
Equity |
|
3,100.4 |
|
1,691.8 |
Noncurrent provisions |
|
2,061.1 |
|
2,947.2 |
Financing liabilities |
|
1,064.0 |
|
1,322.7 |
Other noncurrent liabilities |
|
196.9 |
|
162.5 |
Of which noncurrent advance payments |
|
56.3 |
|
71.1 |
Noncurrent liabilities |
|
3,322.0 |
|
4,432.4 |
Financing liabilities |
|
372.8 |
|
82.8 |
Trade payables |
|
761.9 |
|
424.2 |
Other current provisions and liabilities |
|
577.2 |
|
319.3 |
Current liabilities |
|
1,711.9 |
|
826.3 |
Liabilities |
|
5,033.9 |
|
5,258.7 |
Total equity and liabilities |
|
8,134.3 |
|
6,950.5 |
|
|
|
|
|
Capital employed |
|
3,782.2 |
|
4,111.4 |
Equity Ratio at 38.1 Percent
Group equity increased substantially year over year and amounted to €3.10 billion as of December 31, 2021 (Dec. 31, 2020: €1.69 billion). The corresponding equity ratio was 38.1 percent (Dec. 31, 2020: 24.3 percent). The net profit for the year increased retained earnings by €827.8 million (Dec. 31, 2020: €202.3 million). The dividend payment of Wacker Chemie AG reduced retained earnings by €99.4 million. The change in provisions for pensions, which was recognized in other comprehensive income, increased other equity items by €533.9 million. Currency translation impacted equity in the amount of €174.3 million. The share of equity attributable to non-controlling interests amounted to €81.9 million as of the reporting date (Dec. 31, 2020: €66.6 million).
Liabilities Lower Due to Decline in Provisions for Pensions
WACKER’s liabilities declined by €224.8 million compared with the previous year, down 4.3 percent to €5.03 billion. Provisions for pensions decreased by €900.0 million year over year and totaled €1.81 billion. The decline was due to higher discount rates and to the payment of €250 million to the CTA to cover Wacker Chemie AG’s pension obligations. The discount rates were 1.24 percent in Germany (Dec. 31, 2020: 0.70 percent) and 2.66 percent in the USA (Dec. 31, 2020: 2.29 percent). Other noncurrent provisions mainly comprised anniversary provisions, and provisions for environmental protection and phased early retirement.
Other noncurrent liabilities came to €196.9 million (Dec. 31, 2020: €162.5 million). They mainly comprised contract liabilities in the shape of advance payments received and noncurrent income tax liabilities. Trade payables rose markedly, to €761.9 million (Dec. 31, 2020: €424.2 million). The main causes of this growth were higher raw-material and energy costs and extended payment terms. Other current provisions and liabilities climbed 80.8 percent to €577.2 million (Dec. 31, 2020: €319.3 million), reflecting the rise in personnel liabilities and personnel provisions. Performance-based compensation for 2021 was much higher than a year earlier and increased liabilities. Current advance payments received amounted to €155.5 million as of the reporting date (Dec. 31, 2020: €46.7 million).
Financing Liabilities Almost Unchanged
Current and noncurrent financing liabilities rose €31.3 million to €1.44 billion as of the reporting date (Dec. 31, 2020: €1.41 billion). Liabilities of some €250 million falling due in 2022 were reclassified as current. Exchange-rate effects likewise led to a slight decrease in financial liabilities. Financing liabilities are mostly denominated in euros and US dollars. Fixed interest is payable on the majority of the financing liabilities.
As of December 31, 2021, WACKER recognized lease liabilities of €153.7 million (Dec. 31, 2020: €122.8 million).
For further information on our financing liabilities, please refer to Note 16 in the Notes to the Consolidated Financial Statements. For further information on the principles and goals of financial management, please refer to Note 13 in the Notes to the Consolidated Financial Statements.
