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Fiscal year 2017/18

Consolidated balance sheet

Non-current assets
Non-current assets rose € 373 million to € 5,153 (4,780) million. The acquisitions of the producer of frozen pizzas Richelieu Foods Inc. and HASA GmbH increased goodwill and other intangible assets, which caused total intangible assets to rise to € 1,659 (1,240) million. The carrying amount of fixed assets was up € 69 million to € 2,991 (2,922) million, driven by investments and changes to the scope of consolidation. The drop of € 115 million in other assets brought the total to € 503 (618) million and was primarily driven by the reduced shares of at equity consolidated companies of € 370 (433) million, reflecting the difficult sugar market environment for the British trading company ED&F Man Holdings Ltd.
Current assets
Current assets rose € 225 million to € 4,181 (3,956) million. This increase was driven mainly by higher inventories, which rose € 66 million, to € 2,119 (2,053) million – especially in the special products segments due to the first time consolidations of frozen pizza producer Richelieu Foods Inc., Braintree, Massachusetts and HASA GmbH, Burg, Germany – , a € 91 million increase in trade receivables to € 972 (881) million and a € 68 million increase in other assets to € 1,090 (1,022) million. The latter was attributable mainly to receivables from the EU for excess production levies in sugar marketing years 1999/2000 and 2000/2001.
Shareholders’ equity
Shareholders’ equity rose to € 5,024 (4,888) million. The equity ratio was slightly lower than last year at 54 (56) %, as total assets climbed to € 9,334 (8,736) million. Südzucker AG shareholders’ equity rose € 109 million to € 3,456 (3,347) million. In parallel, other minority interests were up € 26 million to € 914 (888) million.
Non-current liabilities
Non-current liabilities rose € 211 million to € 2,251 (2,040) million. Provisions for pensions and similar obligations dropped € 42 million to € 781 (823) million due to valuation at a higher discount rate, which rose to 2.20 % on 28 February 2018 from 1.90 % on 28 February 2017. Financial liabilities were up € 200 million to € 1,117 (917) million due to the placement of the 2017/2025 bond in the third quarter with a book value of € 495 million, together with higher bank liabilities. This was offset by a decline due to recognition of the € 400 million 2011/2018 bond due 29 March 2018 under current liabilities. The increase of € 53 million in other liabilities to € 353 (300) million is mainly due to deferred tax liabilities.
Current liabilities
Current liabilities rose € 251 million to € 2,059 (1,808) million. Current financial liabilities were up € 235 million to € 456 (221) million, because of the increase driven by the recognition now of the € 400 million 2011/2018 bond due on 29 March 2018 as a current liability, which was offset by repayment of bank liabilities.
Trade payables were up € 29 million to € 946 (917) million. The latter include liabilities to beet growers totaling € 357 (442) million. Other debt, consisting of other provisions, taxes owed and other liabilities, declined € 13 million to € 657 (670) million.
Net financial debt
Net financial debt climbed € 430 million to € 843 (413) million as of 28 February 2018. The ratio of net financial debt to equity was 16.8 (8.4) %.
The group’s long-term financing requirements as of 28 February 2018 were covered by € 793 (697) million in bonds, € 43 (43) million in promissory notes and € 281 (174) million in bank loans.
The group’s short term financing needs as of the balance sheet date were covered by bank loans of € 54 (138) million, bonds valued at €400 (0) million and promissory notes totaling € 0 (83) million. As of the record date, Südzucker Group had access to adequate liquidity reserves of € 1.5 (1.6) billion, consisting of non-utilized syndicated credit lines and other bilateral bank credit lines. In addition, the company had cash and cash equivalents and securities totaling € 730 (725) million.
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