Liquid Assets and Net Financial Debt

Net Financial Debt1

 

 

Dec. 31,
2015

 

March 31, 2016

June 30,
2016

 

Change vs. March 31, 2016

 

 

€ million

 

€ million

€ million

 

in %

1

Net financial debt is not defined in the International Financial Reporting Standards and is calculated as shown in this table.

2

Classified as debt according to IFRS

3

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 and held-to-maturity financial investments that were recorded as current on initial recognition.

Bonds and notes / promissory notes

 

15,547

 

16,153

16,165

 

+0.1

of which hybrid bonds2

 

4,525

 

4,526

4,527

 

.

Liabilities to banks

 

2,779

 

2,805

2,182

 

–22.2

Liabilities under finance leases

 

474

 

449

447

 

–0.4

Negative fair values of hedges of recorded transactions

 

753

 

632

708

 

+12.0

Other financial liabilities

 

369

 

255

175

 

–31.4

Positive fair values of hedges of recorded transactions

 

(350)

 

(265)

(287)

 

+8.3

Financial liabilities

 

19,572

 

20,029

19,390

 

–3.2

Cash and cash equivalents

 

(1,859)

 

(3,552)

(1,055)

 

–70.3

Current financial assets3

 

(264)

 

(154)

(495)

 

.

Net financial debt

 

17,449

 

16,323

17,840

 

+9.3

  • Net financial debt of the Bayer Group increased by €1.5 billion between March 31, 2016, and the end of the second quarter. Cash inflows from operating activities only partially offset the outflow for the dividend payment.
  • 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 Standard & Poor’s. The hybrid bonds thus have a more limited effect on the Group’s rating-specific debt indicators than conventional borrowings.
  • In April 2016, Bayer Nordic SE redeemed at maturity a bond with a nominal volume of €200 million issued under its Debt Issuance Programme (previously known as the multi-currency European Medium Term Notes program).
  • In June 2016, Bayer Capital Corporation B.V repaid ahead of schedule two loans with a nominal volume of €500 million issued by the European Investment Bank.
  • The other financial liabilities as of June 30, 2016, included commercial paper of €80 million.
  • Standard & Poor’s gives Bayer a long-term issuer rating of A–, while Moody’s gives us a long-term rating of A3. The short-term ratings are A‑2 (Standard & Poor’s) and P‑2 (Moody’s). These investmentgrade ratings document good creditworthiness. Both rating agencies are currently reviewing our ratings with regard to a potential downgrade.