Assets


Balance sheet total down to EUR 28.1bn

At the end of the financial year 2011 the consolidated balance sheet total came to EUR 28.1bn and therefore was EUR 1.2bn below the figure for the previous year. Whereas non-current assets fell by EUR 336m to EUR 18.6bn, current assets sank even further by EUR 903m to EUR 9.5bn.

On 22 December 2011 Deutsche Lufthansa AG and International Airlines Group (IAG) signed an agreement on the sale of British Midland Ltd. (bmi) to IAG. On the basis of this agreement the assets and liabilities attributable to bmi have, in accordance with IFRS 5, been presented separately in the balance sheet as of 31 December 2011 as assets held for sale and liabilities included within a disposal group.

Non-current assets declined by EUR 391m primarily because the slots and the brand name of bmi are now shown separately. The item aircraft and reserve engines increased by EUR 439m to EUR 11.6bn due to additions in the current financial year.

The fall of EUR 230m in equity investments is due principally to the change in the market value of the shares in Amadeus IT Holding S.A. (EUR –107m) and JetBlue (EUR –44m) without effect on profit and loss and to the reclassification of equity investments attributable to bmi (EUR –45m). Non-current securities sank by EUR 116m due in large part to the disposal of a borrower’s note loan.

Within current assets receivables rose slightly by EUR 36m to EUR 3.4bn. The decrease in the market values of current financial derivatives (EUR –70m) stems largely from fuel hedging and is offset by an increase in the market values of currency hedges. Cash and cash equivalents, consisting of current securities, bank balances and cash-in-hand, sank by EUR 1.4bn to EUR 4.0bn. Assets held for sale rose by EUR 500m to EUR 686m, largely due to the reclassification of bmi’s assets. Details on the components of this item can be found in the Notes to the consolidated financial statements, “Note 33”.

Capital structure slightly improved

Shareholders’ equity (including minority interests) came to EUR 8.0bn as of the reporting date. This represents a decline of 3.5 per cent. The fall was accompanied by an after-tax result that almost broke even, and stems mainly from the dividend payments of EUR 296m for the 2010 financial year to shareholders of Deutsche Lufthansa AG and minority shareholders as well as negative changes of EUR 90m in the market values of financial assets. The latter includes EUR 71m in higher intrinsic values for financial derivatives used to hedge fuel and currency risks. Positive currency translation differences increased equity by EUR 81m. As the consolidated balance sheet total contracted by 4.2 per cent, the equity ratio rose as a result to 28.6 per cent (year-end 2010: 28.4 per cent) and is therefore drawing even nearer to its medium-term target of 30 per cent.

Development of earnings, equity and equity ratio

 

 

2011

2010

2009

2008

2007

*

Incl. minority interests.

Result*

€m

4

1,143

–22

552

1,760

Equity*

€m

8,044

8,340

6,202

6,594

6,900

Equity ratio*

%

28.6

28.4

23.5

29.4

30.9

Non-current liabilities and provisions went down by EUR 900m to EUR 10.3bn in the reporting year, while current borrowing was on par with the previous year at EUR 9.8bn. Under the non-current liabilities, financial borrowing fell by a total of EUR 419m, largely thanks to the early repayment of five borrower’s note loans and to maturities, while the negative market value of derivative financial instruments (principally from currency hedging) declined by EUR 56m. The ongoing funding of pension obligations via external pension funds again reduced the corresponding provisions by EUR 406m to EUR 2.2bn.

Return on equity (bar chart)

Within the current liabilities and provisions, financial liabilities decreased by a total of EUR 341m. This increase was due to maturities and was offset in the reporting period by capital repayments. Furthermore, the negative market values of current financial derivatives (largely from exchange rate hedging) dropped by EUR 66m. Liabilities included within a disposal group consist essentially of liabilities attributable to British Midland Ltd., which is due to be sold. Details can be found in the Notes to the consolidated financial statements, “Note 33“.

Non-current funding accounts for 65.1 per cent of the balance sheet total (previous year: 66.5 per cent). Non-current financing now covers 98.2 per cent of non-current assets (previous year: 102.8 per cent).

Net indebtedness rose to EUR 2.3bn (previous year: EUR 1.6bn). This is the balance of gross financial debt and available financial assets plus non-current securities that can be liquidated at short notice.

Calculation of net indebtedness and gearing

 

2011
in €m

2010
in €m

Change
in %

*

Realisable at any time.

Liabilities to banks

1,456

1,925

–24.4

Bonds

2,119

2,177

–2.7

Other non-current borrowing

2,849

3,082

–7.6

 

6,424

7,184

–10.6

 

 

 

 

Other bank borrowing

16

23

–30.4

Group indebtedness

6,440

7,207

–10.6

 

 

 

 

Cash and cash equivalents

887

1,097

–19.1

Securities

3,111

4,283

–27.4

Non-current securities (liquidity reserve)*

114

231

–50.6

Net indebtedness

2,328

1,596

45.9

 

 

 

 

Pension provisions

2,165

2,571

–15.8

Net indebtedness and pensions

4,493

4,167

7.8

 

 

 

 

Gearing in %

55.9

50.0

5.9 pts

Gearing, at 55.9 per cent (previous year: 50.0 per cent), was still within the target corridor of 40 to 60 per cent. The figure expresses the ratio of net indebtedness plus pension provisions to shareholders’ equity. By contrast, the debt repayment ratio came to 49.7 per cent in 2011, missing its target of 60 per cent. A ten-year overview of the main performance indicators can be found in the chapter “Ten-year overview”.

Debt repayment ratio

in €m

2011

2010

Cash flow from operating activities

2,517

2,992

Change in working capital

–291

–440

Interest income

336

314

Interest paid

–449

–451

Dividends received

118

74

Adjusted cash flow from operating activities

2,231

2,489

 

 

 

Net indebtedness and pensions

4,493

4,167

 

 

 

Debt repayment ratio in %

49.7

59.7

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