ThyssenKrupp AG

Balance Sheet
For the year ended 30 September
  ACTUAL FORECAST
Notes 2013 2014 2015 2016 2017
€’000 €’000 €’000 €’000 €’000
Non-Current Assets          
Intangible Assets 1 4206 4308 4523 4750 4987
Property, Plant And Equipment 2 7484 8308 9139 10053 11058
Investment Property 3 287 283 311 342 377
Investments Accounted For Using The Equity Method 4 949 639 671 704 740
Financial Assets 5 3016 2274 2501 2752 3027
Total Non-Current Assets 15942 15812 17146 18601 20188
Current Assets          
Inventories 6 6351 7420 8162 8978 9876
Trade Accounts Receivable 7 4956 5782 6649 7979 8777
Financial Assets 8 4112 2880 3312 3478 3651
Current Income Tax Assets 9 123 174 209 230 239
Cash And Cash Equivalents 10 3813 3979 4178 4387 4606
Total Current Assets 19355 20235 22510 25051 27150
Total Assets 35297 36047 39656 43652 47338
Equity And Liabilities        
Capital Stock 11 1317 1449 1449 1449 1449
Additional Paid In Capital 12 4684 5434 5434 5434 5434
Cumulative Other Comprehensive Income 13 58 242 215 181 135
Retained Earnings 14 (3816) (4144 (3679 (3099 (2319
) ) ) )
Equity Attributable To Stockholders 2243 2981 3419 3965 4699
Non-Controlling Interest 15 269 218 218 218 218
Total Equity 2512 3199 3637 4183 4917
Non-Current Liabilities        
Obligations 16 7348 7354 7722 8108 8513
Other Provisions 16 946 1098 1208 1329 1342
Financial Debt 17 6955 6477 7021 7397 7116
Financial Liabilities 18 56 59 59 56 56
Total Non-Current Liabilities 15305 14988 16010 16889 17027
Current Liabilities          
Current Income Tax Liabilities 19 234 193 174 157 142
Financial Debt 20 1911 1005 1508 2261 3392
Trade Accounts Payable 21 4276 5247 5772 6349 6666
Other Financial Liabilities 22 1241 1379 1517 1669 1835
Other Non-Financial Liabilities 22 9818 10036 11040 12144 13358
Total Current Liabilities 17480 17860 20010 22579 25394
Total Liabilities 32785 32848 36019 39469 42421
Total Equity And Liabilities 35297 36047 39656 43652 47338
Assumptions and Justifications for forecasted balance sheet.
1. Intangible asset will increase at a constant rate of 5% year on year as Thyssenkrupp
investment in research and development has brought about new innovations in their
business areas such as the Elevator business where they have introduced a twin cab
elevator.
2. PPE will remain at a constant growth rate of 15% year on year as there has been no
news on future acquisitions as the company is trying streamline its portfolio. As a
result the investment in PPE will mainly be due to expansion and maintenance
programs within its already existing business areas as prescribed in the ‘Strategic way
forward’ program and Thyssenkrupp’s “Impact model”.
3. Determined using valuation methods such as gross rental method, asset value
method and comparison to current market prices of similar real estate, Investment
property will remain at an average increase of 10% as there has been no news about
future disposals and acquisitions.
4. Thyssenkrupp’s business areas expansion and efficiency programs entail
strengthening their market positions in the emerging markets they operate in such as
China and Latin America and as a result they are expected to boost investments in
associate companies in those regions to develop sales and marketing linkages. Hence
we predict a 5% year on year increase investment so as to meet the required targets.
5. We predict a change in financial assets as there will be new innovative solutions from
their research and development team on the Strategic way forward program. We
forecast a 10% increase on financial assets year on year.
6. In 2015 Inventory will rise slightly by a single digit as a result of the uncertainty of the
global economy and geopolitical crises in the middle east and south America, hence
we predict an increase of 10% in inventory in 2015. But as for 2016 and 2017, the
geopolitical crises should improve and with the USA lifting its embargo on Cuba, this
will lead to further business opportunities and hence inventory should rise a further
to 15% for 2016 and 2017 respectively.
7. We forecast an increase in trade receivables in line with the growth in inventories and
demand for services in ThyssenKrupp’s global business areas. Hence in 2015, we
forecast a 15% increase in line with its inventory capacity and 20% in 2016 and 2017
as there will be higher global purchasing activities. ThyssenKrupp aims to bolster their
cash position for possible reinvestment in capacity expansion, probably through
marginal reduction in credit periods
8. With planned capital spending for 2015 to be around 1.5 billion euro which shows an
increase of 0.25 billion euro over 2014, and every business expected to make a
positive contribution to the company’s EBIT except Steel America which is expected to
break even. The financial assets are likely to increase and for this fact we forecast an
increase by 15% in 2015 and 10% in 2016 and 2017 respectively.
9. Current income tax assets is essentially quantifying the amount of tax credits received
by ThyssenKrupp, and is commonly claimed by manufacturing firms as the tax was
paid on purchases of machinery that will be used to create another item whose
 earnings will be taxed anyways based on the statutory tax rate. There is no additional
information on this line item with respect to ThyssenKrupp, so we forecast that based
on addition interchangeable lines and other machinery purchased during the year,
this amount will increase mostly in 2015 at 20%, and slightly be lower at 10% in 2016
and 2017 respectively.
10. As stated in the report, the financing of the Group is handled centrally by
ThyssenKrupp AG and is based on a multi-year financial planning system and a
monthly rolling liquidity planning system covering a planning period of up to a year.
At September 30, 2014 the Group’s available liquidity came to €7.8 billion, consisting
of €4.0 billion cash and cash equivalents and €3.8 billion committed undrawn credit
lines. As a result of this we forecast an increase of 5% year on year for its cash and
cash equivalents.
11. Capital Stock was forecasted to remain constant through till 2017 as there is no
information on any changes in share capital.
12. Additional Paid in Capital remains constant as there is no information about
additional/increase in capital for subsidiaries with non-controlling interest.
13. Cumulative other comprehensive income will fluctuate in line with the change in net
income as reported on the income statement.
14. Retained Earnings are not forecasted but calculated accordingly.
15. Non-controlling interest will remain constant as there is no information about
acquiring subsidiaries and other joint ventures.
16. We forecast Obligations to rise at a constant rate of 5% as ThyssenKrupp have signed
long term contracts with their suppliers for raw materials and embark on an efficiency
and sustainability program throughout the organization.
17. Other provisions are forecasted to increase year on year at 10%.
18. The net financial debt of the full Group at September 30, 2014 stood at €3,488
million, down significantly from the level at September 30, 2013 (€5,038 million).
Taking into account cash, cash equivalents, committed undrawn credit lines and the
balanced maturity structure, ThyssenKrupp is solidly financed. In line to this we
forecast a 15% year on year increase in financial debt.
19. Both Financial and non-Financial liabilities will remain at a constant rate as
ThyssenKrupp has really managed to reduce its risk by the disposal of Steel USA
rolling and coating plant and the severing of all financial links with Outokumpu.
20. Current income tax liability was forecasted at 8% year on year decline.
21. Short term financial debt is forecasted to increase at 50% year on year as
ThyssenKrupp through its Sustainability and Impact programs will have to invest in
efficient and better customer interactions.
22. Trade accounts payable are forecasted to increase at 10% year on year.
23. All financial liabilities are forecast to increase at constant rate of 10%.