Net financial debt
|Net financial debt|
as of Dec 31 (€ million)
|Other financial debt|
Liquid assets and financial
Effects from currency hedges
|Net financial debt|
thereof IFRS 16 effect
1) In the previous year: Finance lease liabilities.
Net financial debt rose significantly as of December 31, 2019. This was mainly due to the inclusion of leasing liabilities from lease agreements previously treated as operating leases (IFRS 16 effect), as well as a net funding need, as the funds needed for capital expenditures, working capital and costs of capital could not be fully covered by internal financing.
- Financial debt increased noticeably:
- The euro value of the outstanding senior bond was slightly higher due to issuing. Exchange rate effects did not play a significant role in development due to hedging transactions completed.
- Leasing liabilities increased primarily as a result of the first-time application of IFRS 16. Dampening
- effects, among other things as a result of ongoing redemptions, were not significant.
- The liabilities from commercial papers increased significantly due to issuing.
- Interest-free loans were reduced by redemptions.
- Our foreign currency senior bonds are mainly hedged by corresponding derivatives against exchange rate fluctuations, so that the exchange rate effects are mainly compensated through the offsetting position of the hedging transaction.
- Cash and cash equivalents increased significantly. The growth in financial debt was not significantly offset.
The maturity structure and composition of the financial debt has changed, mainly as a result of the first-time application of IFRS 16:
- In particular, current financial debt (up to one year) has increased. In contrast, non-current financial debt (over five years) declined in particular.
- The composition of financial debt has shifted towards leasing liabilities. In addition, the share of commercial paper increased due to issuing. The share of senior bonds and interest-free loans to financial debt declined by comparison.