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ePaper created 2015-05-06, 08:22:31 | version 1.38.0
20 The Group funds itself centrally via the Corporate Treasury function at Heraeus Holding GmbH. Liquidity is secured on the basis of multi-year financial planning in which the Group’s operational activities are the principal source of liquidity. The Group’s sources of medium and long-term funding are primarily the seven-year, euro-denominated bond issued in 2010, a promissory note loan, and two privately placed registered bonds. To fund its short- term financial requirements, the Group has access to a commercial-paper program and a long-term, committed syndicated loan facility. Neither of these instruments had been utilized at the end of 2014. The Trading division also uses precious metal leases for short-term funding. At the end of 2014, the total market value of the precious metals on loan from third parties amounted to €280.8 million (2013: €55.1 million). Net cash provided by operating activities in 2014 came to €184.3 million (2013: €229.4 million), most of which derived from net income. The net cash used for investing activities of €198.1 mil- lion mainly comprised payments for investments in non- current assets (€121.1 million) and an increase in liquid- ity reserves in the form of securities (up by €82.5 million). Dividend payments totaling €76.7 million together with a marginal rise in interest-bearing liabilities (up by €3.3 mil- lion) resulted in net cash used for financing activities reaching €73.4 million. Consequently, there was an overall decrease in cash and cash equivalents of €87.2 million. For further analysis, please refer to the cash flow statement in the notes to the consolidated financial statements. The Group’s total liquidity reserves, i.e. aggregated cash, cash equivalents, and securities, had risen by €29.9 mil- lion to €1,045.1 million at the year end. The Group’s financial position and financial performance remained very robust, providing strong foundations for the active devel- opment of its businesses, now and in the future, and for consolidating its position in the market. Capital expenditure In 2014, capital expenditure amounted to €114.5 million, which was lower than the €141.3 million recorded in the previous year (down by 19.0 percent). In addition, there were purchase commitments of €19.1 million at the year end that could be met using the cash and cash equiva- lents available. The individual business groups focused their expenditure on different areas. The Precious Metals business group, which accounted for the bulk of the Group’s capital expenditure, at €26.8 mil- lion, mainly invested in expanding its business with medical technology products in the USA, in strengthen- ing its market position, and in increasing its capacities. The Materials Technology business group invested in the completion of the new sites in Romania and Malaysia and in the expansion of the existing sites in Singapore and China. The Sensors business group focused on efforts to automate and modernize production, particularly at the sites in China and the USA. Automating and modernizing production and packaging technology was also a key area of investment for the Biomaterials and Medical Products business group. For the Quartz Glass business group, expenditure was mainly concentrated on the business with optical fibers, where there was a specific focus on process improvements. No notable capital expenditure for organic growth was carried out by the Specialty Light Sources business group in 2014.