Financial Statements and Management Report - Thyssenkrupp

1.3 Management Report Financial position
Receivables and liabilities from/to affiliated companies are significant items in the balance sheet of
ThyssenKrupp AG. They reflect the central importance of ThyssenKrupp AG in the Group’s cash
management system. At September 30, 2011 receivables from affiliated companies were up €3,063 million
from the prior year at €9,113 million; €2,013 million related to the establishment of Inoxum GmbH (formerly
ThyssenKrupp Stainless Erste Beteiligungsgesellschaft mbH).
The €986 million change in securities classed as operating assets was due to the acquisition of shares in
subsidiaries of the Stainless Global business area in order to legally combine the activities of this area in
connection with the strategic development program.
ThyssenKrupp AG bears liability from the transfer of businesses and internal transfer of pension obligations.
In the past these obligations were reported under other contingencies. In the reporting year these
obligations were recognized for the first time after the introduction of the Accounting Law Modernization Act
as other assets in the amount of €764 million. This caused in increase in other receivables and other assets,
with a corresponding increase in pension obligations (see Note on Provisions).
A bond (par value €750 million) with a seven-year term was repaid on March 29, 2011, and a zero coupon
bond with a par value of €100 million was likewise repaid. This was partly offset by the borrowing of notes
payable of €300 million.
Liabilities to affiliated companies mainly concern deposits by subsidiaries in the Group’s financial clearing
system. Liabilities to affiliated companies increased year-on-year by €10,277 million to €28,202 million. The
increase is due firstly to new loans of subsidiaries to ThyssenKrupp AG of €3,040 million and secondly to
increased intercompany accounts and loans of Krupp Hoesch Stahl GmbH of €4,305 million and
ThyssenKrupp Italia S.p.A. of €991 million.
At September 30, 2011 cash on hand and cash at banks were unchanged from the prior year at €1,495
million.
Total equity increased by €286 million to €6,178 million at September 30, 2011. This increase is explained
by the net income achieved in the reporting year taking into account the dividend payout for fiscal
2009/2010 resolved by the Annual General Meeting. However, as total assets also increased, the equity
ratio deteriorated from 20% in the prior year to 16% at September 30, 2011.
The higher pension provisions are due to the first-time recognition of internally transferred pension
obligations of €764 million (see Note on Other receivables and other assets).
More information on the financial position of ThyssenKrupp AG is contained in the Notes.
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