Financial Statements and Management Report - Thyssenkrupp
Financial Statements and Management Report - Thyssenkrupp
Financial Statements and Management Report - Thyssenkrupp
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1.3 <strong>Management</strong> report <strong>Financial</strong> position<br />
<strong>Financial</strong> position<br />
We are strengthening the company <strong>and</strong> its core business with<br />
customer-oriented investments, decreasing net debt <strong>and</strong> secured<br />
liquidity.<br />
Capital expenditures<br />
ThyssenKrupp AG invested €17,849 million in fiscal year 2010/2011. Of this, €2 million was for software<br />
licenses as intangible assets. The €12 million additions to property, plant <strong>and</strong> equipment <strong>and</strong> the<br />
reclassification of the €57 million construction in progress recognized in the prior year mainly related to the<br />
ThyssenKrupp Quarter in Essen.<br />
<strong>Financial</strong> assets increased by €17,835 million. The biggest portion – €15,571 million – is shares in affiliated<br />
companies (thereof €8,244 million ThyssenKrupp Nederl<strong>and</strong> Holding B.V., €2,645 million Krupp Hoesch<br />
Stahl GmbH <strong>and</strong> €1,500 million ThyssenKrupp Italia S.p.A.) <strong>and</strong> reflected the purchase of new shares,<br />
allocations to additional paid-in capital <strong>and</strong> mergers of direct subsidiaries. A further €3,316 million related to<br />
loans to affiliated companies under long-term loan agreements. Disposals of shares <strong>and</strong> loans to affiliated<br />
companies in the net carrying amount of €11,834 million included €11,058 million capital repayments by<br />
subsidiaries of ThyssenKrupp AG as well as mergers of direct subsidiaries. In addition, €776 million came<br />
from the repayment of loans by various Group subsidiaries.<br />
Net financial debt<br />
In the reporting year, the net financial debt of the group led by ThyssenKrupp AG was once again dominated<br />
by our investments in Brazil <strong>and</strong> the USA. Our net working capital also increased as a result of significantly<br />
higher orders <strong>and</strong> inventories.<br />
Central financing <strong>and</strong> maintenance of liquidity<br />
The financing of the Group is managed centrally by ThyssenKrupp AG. It is based on a multi-year financial<br />
planning system <strong>and</strong> a monthly rolling liquidity planning system covering a planning period of up to one<br />
year. The cash inflows from our operating activities are our main source of liquidity. Our cash management<br />
systems allow Group companies to use surplus funds from other company units to cover their own financial<br />
requirements. This reduces the volume of external financing requirements <strong>and</strong> thus our interest expense.<br />
External financing requirements are covered by committed credit facilities in various currencies <strong>and</strong> with<br />
various terms. In addition we use money <strong>and</strong> equity market instruments as well as selected off-balance<br />
financing instruments such as factoring programs <strong>and</strong> operating leases.<br />
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