Liquid Assets and Net Financial Debt

Net Financial Debt1

 

 

Dec. 31,
2016

 

March 31, 2017

June 30,
2017

 

Change vs. March 31, 2017

 

 

€ 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

 

15,421

15,871

 

+2.9

of which hybrid bonds2

 

4,529

 

4,530

4,531

 

.

Liabilities to banks

 

1,837

 

1,846

1,756

 

−4.9

Liabilities under finance leases

 

436

 

435

412

 

−5.3

Liabilities from derivatives3

 

587

 

534

369

 

−30.9

Other financial liabilities

 

730

 

751

797

 

+6.1

Receivables from derivatives3

 

(313)

 

(235)

(299)

 

+27.2

Financial liabilities

 

19,268

 

18,752

18,906

 

+0.8

Cash and cash equivalents

 

(1,899)

 

(2,224)

(2,773)

 

+24.7

Current financial assets4

 

(5,591)

 

(6,128)

(6,691)

 

+9.2

Net financial debt

 

11,778

 

10,400

9,442

 

−9.2

  • Net financial debt of the Bayer Group decreased by €1.0 billion between March 31, 2017, and the end of the second quarter. Cash inflows from operating activities and positive currency effects offset the outflow for the dividend payment. The Group generated proceeds of approximately €1.0 billion 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 April and June 2017, Bayer Holding Ltd., Japan, redeemed at maturity two bonds with nominal volumes of JPY 30 billion and JPY 10 billion issued under its debt issuance program. That company also issued two bonds with volumes of JPY 10 billion each in May 2017.
  • In June 2017, Bayer AG issued debt instruments with a nominal value of €1.0 billion that will mature in 2020. These bonds can be redeemed in cash, Covestro shares or a combination of the two. The annual interest rate is 0.05%.
  • Other financial liabilities as of June 30, 2017, included €657 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.