2018 Integrated Report – On track towards a better Railway

Business development

Net financial debt increased

Net financial debt as of Dec 31 (€ million)

2018

2017

Change

absolute

%

 

Interest-free loans

851

1,014

– 163

– 16.1

Finance lease liabilities

562

501

+ 61

+ 12.2

Other financial debt

21,831

20,561

+ 1,270

+ 6.2

     thereof bonds

20,712

19,616

+ 1,096

+ 5.6

Financial debt

23,244

22,076

+ 1,168

+ 5.3

  Cash and cash equivalents and receivables from financing

– 3,718

– 3,528

– 190

+ 5.4

  Effects from currency hedges

23

75

– 52

– 69.3

Net financial debt

19,549

18,623

+ 926

+ 5.0

Net financial debt rose significantly as of December 31, 2018. This resulted mainly from higher capital requirements for capital expenditures and working capital.

  • Financial debt increased noticeably:
    • Interest-free loans were reduced by redemptions.
    • Finance lease liabilities increased as a result of acquisitions and as a consequence of changes in two rental properties. The impact was dampened by consistent redemption, amongst others factors.
    • The key factor was that the euro value of the outstand­­ing bonds increased significantly because of the new issues. Exchange rate effects did not play a significant role in development as a result of hedging transactions.
  • The effects of currency hedges, which are based on the hedged exchange rate at the time of issue, increased debt (as of December 31, 2017: increased debt) but were, however, not significant. Since our foreign currency-denominated bonds are, with very few exceptions, hedged against currency fluctuations by corresponding derivatives, exchange rate effects are offset by the correspond­­ing opposite position of the hedge.
  • Cash and cash equivalents increased slightly and to an extent balanced out the increase in financial debt.

The maturity structure and composition of financial debt were largely unchanged as of December 31, 2018.