Net Assets

Assets

• Growth in total assets due to addition of equity-accounted shareholdings in Wintershall Dea and Solenis
• €1.3 billion increase in property, plant and equipment following introduction of IFRS 16

Total assets amounted to €86,950 million as of December 31, 2019, slightly above the prior-year level.

Noncurrent assets rose by €12,625 million to €55,960 million. All items except intangible assets contributed here. The main driver was investments accounted for using the equity method, which rose by €12,805 million to €15,008 million. This was largely attributable to the interest in Wintershall Dea GmbH, Kassel/Hamburg, Germany, and to a lesser extent the interest in Solenis UK International Ltd., London, United Kingdom, both of which were included for the first time.

Property, plant and equipment rose by €1,012 million and additionally included capitalized right-of-use assets arising from leases in the amount of around €1.3 billion as a result of the initial application of IFRS 16. Additions to property, plant and equipment exceeded depreciation and impairment for 2019 by €434 million. By contrast, the creation of the disposal groups for the construction chemicals and pigments businesses reduced property, plant and equipment by €769 million and intangible assets by €1,667 million. Amortization of intangible assets exceeded additions by €483 million; overall, intangible assets declined by €2,029 million.

Other financial assets were also above the prior-year level, rising by €66 million to €636 million. Deferred tax assets rose by €545 million to €2,887 million, primarily as a result of the increase in pension provisions. Other receivables and miscellaneous assets also rose year on year, by €226 million to €1,112 million. This was mainly due to the higher positive fair values of derivatives and interest and currency swaps used to hedge bonds in U.S. dollars.

Current assets declined by €12,231 million to €30,990 million. This was largely the result of the derecognition of disposal groups in the total amount of €14,600 million for the paper and water chemicals business in the first quarter, and for the oil and gas business in the second quarter of 2019. Offsetting effects came from the reclassification of assets to disposal groups for the pigments business in the third quarter of 2019, and for the construction chemicals business in the fourth quarter.

Trade accounts receivable declined by €1,572 million, due among other factors to reclassifications to the disposal groups. The increase in other receivables and miscellaneous assets to €3,790 million (2018: €3,139 million) is mainly attributable to higher fair values for derivatives and growth in precious metal trading items.

Inventories declined by €943 million to €11,223 million, again primarily as a result of the reclassification to the disposal groups.

Cash and cash equivalents amounted to €2,427 million, slightly above the prior-year level (2018: €2,300 million).