Liquid Assets and Net Financial Debt

Net Financial Debt1

 

 

Dec. 31, 2016

 

June 30, 2017

Sep. 30, 2017

 

Change vs. June 30

 

 

€ million

 

€ million

€ million

 

%

1

For definition see Annual Report 2016, Chapter “Alternative Performance Measures Used by the Bayer Group.”

2

Classified as debt according to IFRS

3

These include the market values of interest-rate and currency hedges of recorded transactions.

4

These include short-term loans and receivables with maturities between 3 and 12 months outstanding from banks and other companies as well as available-for-sale financial assets that were recorded as current on initial recognition.

Bonds and notes / promissory notes

 

15,991

 

15,871

14,214

 

−10.4

of which hybrid bonds2

 

4,529

 

4,531

4,532

 

.

Liabilities to banks

 

1,837

 

1,756

719

 

−59.1

Liabilities under finance leases

 

436

 

412

264

 

−35.9

Liabilities from derivatives3

 

587

 

369

278

 

−24.7

Other financial liabilities

 

730

 

797

642

 

−19.4

Receivables from derivatives3

 

(313)

 

(299)

(194)

 

−35.1

Financial liabilities

 

19,268

 

18,906

15,923

 

−15.8

Cash and cash equivalents

 

(1,899)

 

(2,773)

(5,555)

 

+100.3

Current financial assets4

 

(5,591)

 

(6,691)

(5,619)

 

−16.0

Net financial debt

 

11,778

 

9,442

4,749

 

−49.7

  • Net financial debt of the Bayer Group declined by half to €4.7 billion compared with June 30, 2017, due mainly to cash inflows from operating activities, inflows of €2.2 billion from the sale of Covestro shares, and a reduction in the amount of €0.5 billion from the deconsolidation of the Covestro Group.
  • Net financial debt includes three subordinated hybrid bonds with a total volume of €4.5 billion, 50% of which is treated as equity by Moody’s and S & P Global Ratings. The hybrid bonds thus have a more limited effect on the Group’s rating-specific debt indicators than senior debt.
  • In July 2017, Bayer World Investments B.V., Netherlands, paid back early an outstanding bank loan in the amount of US$900 million that was taken out as part of the Merck OTC financing.
  • Other financial liabilities as of September 30, 2017, included €523 million in connection with the mandatory convertible notes issued in November 2016.
  • S & P Global Ratings and Moody’s give Bayer long-term issuer ratings of A– and A3, respectively. The short-term ratings are A–2 (S & P Global Ratings) and P–2 (Moody’s). These investment-grade ratings document good creditworthiness. In connection with the agreed acquisition of Monsanto, both rating agencies are currently reviewing the long-term issuer ratings with regard to a potential downgrade. In addition, Moody’s is currently reviewing its short-term P–2 rating.