Issued Share Capital
The share capital was € 136,097,896, represented by 136,097,896 no-par value shares representing € 1 per share. The share capital is fully paid in.
Additional Paid-in Capital
The additional paid-in capital contains excess amounts over the calculated value resulting from the issuance of shares of ALTANA AG and from equity-settled share-based payment transactions from previous years. Cash-inflows from the sale of shares to non-controlling interests are also included.
Accumulated Other Comprehensive Income
In accordance with IAS 39, accumulated unrealized gains and losses resulting from changes in fair values of available-for-sale financial instruments net of income taxes are recorded in the item “Financial assets available-for-sale” unless an impairment loss is recognized.
Changes in the fair value of derivative financial instruments qualifying as cash flow hedges are recognized, net of income taxes, in the item “Derivative financial instruments” if all hedge accounting criteria under IAS 39 are met.
Additional Disclosures for Capital Management
The capital management of the Company comprises the management of cash and cash equivalents and marketable securities, shareholders’ equity and debt. The main objective is to ensure the availability of financial funds within the Group. The majority of ALTANA’s Group Management Report Corporate Governance Environment, Safety, and Corporate Social Responsibility Consolidated Financial Statements 113 operations are financed by the Company’s operating cash flows. Excess funds required are financed by borrowings.
In 2015, ALTANA’s shareholders’ equity increased by € 190.2 million to € 1,935.6 million. Due to the distribution of the ordinary dividend for 2014, shareholders’ equity decreased by € 60.0 million. This decrease was offset by consolidated net income of € 158.0 million in 2015. The debt to asset ratio was at 35 %. Long-term and short-term debt represented 21 % and 13 % of total liabilities, provisions and shareholders’ equity.
In 2013, ALTANA completed the financing of the acquisition of the rheology business from Rockwood Holdings. An acquisition financing facility of € 300 million was made available by an international banking syndicate. After completion of the acquisition, an amount of € 200 million was refinanced by a promissory note loan (German Schuldschein). On December 31, 2014, the acquisition financing facility was repaid entirely. The promissory note loans totaling € 350 million that were issued in previous years will expire in 2016 at the earliest. The syndicated credit line of € 250 million, originally agreed in 2012, was modified in 2015 and extended for five more years, with an option to extend it for further two years.
The Company aims for a balance between equity and liabilities, which allows for further growth either through operational growth or acquisitions. Currently, the Company is not externally rated by a rating agency. The existing and the aspired financing structure – including bolt-on acquisitions – should be adequate for the requirements of an investment grade rating.
Foreign exchange restrictions exist for subsidiaries located in Brazil, India and China.
For subsidiaries located in Brazil, India, and China regulatory foreign exchange restrictions exist.
The following table provides financial information for the subsidiary ELANTAS Beck India Ltd. The amounts reported refer to 100 % and not to the share of 75 % held by ALTANA:
In 2015 and 2014, respectively, net income of € 1.4 million and € 0.7 million related to noncontrolling interests and dividends of € 0.1 million and € 1.4 million were distributed to them. On December 31, 2015 and 2014, non-controlling interests held 25 % of the shares.
The sale of the shares to the non-controlling interests in 2014 was recognized directly in shareholders’ equity in accordance with IFRS 10.