Annual Financial Statements of Sartorius AG
The retained profit of Sartorius AG is the key reference value for the payment of dividends to our shareholders. Whereas the Sartorius Group financial statements are drawn up according to the International Financial Reporting Standards (IFRS), the annual financial statements for Sartorius AG are prepared by applying the rules and regulations of the German Commercial Code (HGB).
The Management Report of Sartorius AG and the Group Management Report for fiscal 2015 are combined. The HGB annual financial statements of Sartorius AG and the combined management report are published simultaneously in the German Federal Gazette (Bundesanzeiger).
Business Operations, Corporate Strategy, Corporate Management and Oversight, Overview of Business Development
Sartorius AG has exercised only the functions of the strategic, group-leading management holding entity for the Sartorius Group since the beginning of fiscal 2011, and we refer in this connection to the explanatory remarks concerning business operations, corporate strategy, corporate management and oversight, as well as the overview of business development, presented on pages of the combined management report of Sartorius AG and the Group.
Sales revenue of Sartorius AG essentially consists of cost transfers to affiliated companies within the Group for management services rendered.
Other operating income principally discloses the gain on disposal resulting from the sale of the Industrial Weighing Technology Division.
The other operating expenses reported indicate the expenses of €6.5 million resulting from the agreement concluded with Minebea, among other expense items.
Income from investments of €12.7 million relative to €16.0 million a year ago essentially concerns dividends paid out for the French subsidiary Sartorius Stedim Biotech S.A. The profit and loss transfer agreements with Sartorius Corporate Administration GmbH resulted in the receipt of a profit of €0.4 million and acceptance of a loss of €16.2 million transferred from Sartorius Lab Holding GmbH, compared with a profit of €9.6 million transferred in 2014.
Net Worth and Financial Position
The balance sheet total of Sartorius AG rose by €11.1 million in the reporting year to €702.9 million. This increase can primarily be attributed to the conclusion of a new syndicated loan agreement. As part of this agreement, Sartorius AG has now taken over financing for the entire Group. Since this transaction, borrowed funds are also transferred to the companies of the Sartorius Stedim Biotech subgroup by internal Group loan agreements or by cash pooling accounts.
The balance sheet structure for Sartorius AG reflects its function as the management holding entity for the Sartorius Group. Fixed assets consist essentially of financial assets and, in the reporting year, amounted to €441.6 million (previous year: €468.5 million). Accordingly, fixed assets account for 65.6% of the balance sheet total (previous year: 69.8%). The equity ratio was 46.2% relative to 38.8% a year earlier.
Statement of Profit and Loss of Sartorius AG
Based on the total cost accounting method according to Section 275, Subsection 2, of HGB1)
|€ in K||2015||2014|
|1. Sales revenue||6,747||4,285|
|2. Other operating income||92,727||1,726|
|3. Employee benefits expense||–6,077||–3,746|
|4. Depreciation and amortization||–598||–262|
|5. Other operating expenses||–12,673||–58,663|
|6. Income from investments||12,740||16,013|
|7. Profit received under a profit |
and loss transfer agreement
|8. Loss accepted under a profit |
and loss transfer agreement
|9. Earnings before interest and taxes||77,067||18,957|
|10. Interest and similar income||4,479||507|
|11. Interest and similar expenses||–8,364||–9,933|
|12. Profit before tax||73,182||9,531|
|13. Income tax expense||55||837|
|14. Other taxes||–23||– 24|
|15. Net profit for the period||73,214||10,344|
|16. Profit brought forward||121,130||129,027|
|17. Retained profits incl. net profit for the period||194,344||139,371|
1) HGB = German Commercial Code
Balance Sheet of Sartorius AG
According to HGB1), € in K
|Assets||Dec. 31, 2015||Dec. 31, 2014|
|A. Fixed Assets|
|I. Property, plant and equipment||19,122||14,527|
|II. Financial assets||441,622||468,510|
|B. Current Assets|
|I. Trade and other receivables||239,954||206,120|
|II. Cash on hand, deposits in banks||417||689|
|C. Prepaid Expenses||1,737||1,905|
|Equity and Liabilities||Dec. 31, 2015||Dec. 31, 2014|
|I. Subscribed capital||18,720||18,720|
|Nominal value of treasury shares||–1,623||–1,673|
|II. Capital reservese||102,759||101,453|
|III. Earnings reserves||10,867||10,867|
|IV. Retained profits incl. net |
profit for the period
|D. Deferred Tax Liabilities||0||0|
1) HGB = German Commercial Code
Proposal for Appropriation of Profits
The Executive Board will submit a proposal to the Annual Shareholders’ Meeting to appropriate the retained profit of €194,343,770.48 reported by Sartorius AG for the year ended December 31, 2015, as follows:
|Payment of a dividend of €1.50 per|
|Payment of a dividend of €1.52 per |
|Unappropriated profit carried forward||168,527,280.64|
Research and Development
Detailed information about the research and development activities of the Sartorius Group and of its divisions is given on pages Business Development of Bioprocess Solutions and Business Development of Lab Products & Services.
Sartorius AG does not employ any staff to be disclosed pursuant to Section 285, No. 7, of HGB.
Risks and Opportunities
The opportunities and risks affecting the business development of Sartorius AG as the management holding entity are essentially equivalent to those of the Sartorius Group. Sartorius AG shares in the risks to which its investments and subsidiaries are exposed in proportion to the extent of its investment. Where expedient and feasible, we adopted countermeasures and | or arranged for balance sheet measures during the reporting year to cover all discernible risks within Sartorius AG that had the potential to damage our net worth, financial position and profitability.
Report on Material Events
Please refer here to read the Report on Material Events for Sartorius AG and the Sartorius Group.
Earnings trends for Sartorius AG depend substantially on the progress of its subsidiaries and, hence, on the Sartorius Group. The development of the Sartorius Group's business is discussed in the Forecast Report.