Liquid Assets and Net Financial Debt

Net Financial Debt1

 

 

Dec. 31, 2016

 

March 31, 2017

 

Change

 

 

€ 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

 

15,421

 

−3.6

of which hybrid bonds2

 

4,529

 

4,530

 

.

Liabilities to banks

 

1,837

 

1,846

 

+0.5

Liabilities under finance leases

 

436

 

435

 

−0.2

Liabilities from derivatives3

 

587

 

534

 

−9.0

Other financial liabilities

 

730

 

751

 

+2.9

Receivables from derivatives3

 

(313)

 

(235)

 

−24.9

Financial liabilities

 

19,268

 

18,752

 

−2.7

Cash and cash equivalents

 

(1,899)

 

(2,224)

 

+17.1

Current financial assets4

 

(5,591)

 

(6,128)

 

+9.6

Net financial debt

 

11,778

 

10,400

 

−11.7

  • Net financial debt of the Bayer Group declined by €1.4 billion between December 31, 2016, and the end of the first quarter, due mainly to cash inflows from the sale of Covestro shares.
  • 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 March 2017, Bayer Nordic SE, Finland, redeemed at maturity a bond with a nominal volume of €500 million issued under its debt issuance program.
  • Other financial liabilities as of March 31, 2017, included €654 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 ratings with regard to a potential downgrade.