Merck 2014 Annual Report Download - page 101

96 GROUP MANAGEMENT REPORT → REPORT ON ECONOMIC POSITION → Course of business and economic position
The development of key balance sheet figures is as follows:
GROUP →
KEY BALANCE SHEET FIGURES
in % Dec. 31, 2014 Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2011 Dec. 31, 2010
Equity ratio Equity 45.4 53.2 48.1 47.4 46.3
Total assets
Asset ratio Non-current assets 59.7 64.5 69.4 71.1 74.7
Total assets
Asset coverage Equity 76.0 82.4 69.4 66.7 62.0
Non-current assets
Finance structure Current liabilities 46.5 40.0 40.6 37.5 28.0
Liabilities (total)
Overall assessment of business performance and economic
situation
The Group can look back on a very successful 2014. The good
development of the operating businesses made it possible to seam-
lessly build on the excellent results of 2013. Major progress was
made with the implementation of the “Fit for 2018” transfor-
mation and growth program. With the acquisition of AZ and the
formation of strategic partnerships, the Group succeeded in secur-
ing future growth and profitability. In particular, the planned
acquisition of Sigma-Aldrich represents a milestone for the Group’s
Life Science business.
Group sales increased by 5.5 % to €11.3 billion in 2014. The
acquisition of AZ, which was completed at the beginning of May
2014, increased sales by 3.3 %. Sales rose not only as a result of
acquisitions, but also organically by 4.0 %. Whereas in the past years
exchange rate developments of key currencies negatively affected
sales, only a slight negative effect of – 1.8 % resulted in 2014.
The development of EBITDA pre one-time items, which increased
in 2014 to €3,388 million (2013: €3,253 million), also shows the
sustainable profitability strength of the Group. Business free cash
flow amounted to €2,605 million in 2014 (2013: €2,960 million),
falling short of the previous year’s excellent figure.
The solid accounting and finance policy of the Group is
reflected by the very good key balance sheet figures. The equity
ratio as of December 31, 2014 was 45.4 %, thus remaining at a
very good level. Net financial debt only rose from €307 million to
€559 million, despite the financing of the purchase price payment
of €1.9 billion for the acquisition of AZ. This shows that thanks
to its high financing power, the company is well-prepared for the
announced acquisition of Sigma-Aldrich. Against the backdrop of
the superb liquidity position and financing base as well as the
excellent business development, the economic position of the Group
can be assessed positively overall. It represents an ideal starting
basis for future organic and inorganic growth.