Asset and Financial Position of the Bayer Group

Liquid Assets and Net Financial Debt

Net Financial Debt1

 

 

Dec. 31, 2017

 

March 31, 2018

 

Change

 

 

€ million

 

€ million

 

%

1

For definition see Annual Report 2017, 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 financial investments in debt and equity instruments that were recorded as current on first-time recognition.

Bonds and notes / promissory notes

 

12,436

 

12,290

 

−1.2

of which hybrid bonds2

 

4,533

 

4,534

 

.

Liabilities to banks

 

534

 

611

 

+14.4

Liabilities under finance leases

 

238

 

248

 

+4.2

Liabilities from derivatives3

 

240

 

199

 

−17.1

Other financial liabilities

 

970

 

686

 

−29.3

Receivables from derivatives3

 

(244)

 

(223)

 

−8.6

Financial debt

 

14,174

 

13,811

 

−2.6

Cash and cash equivalents

 

(7,581)

 

(5,332)

 

−29.7

Current financial assets4

 

(2,998)

 

(6,829)

 

+127.8

Net financial debt

 

3,595

 

1,650

 

−54.1

  • Net financial debt of the Bayer Group decreased to €1.7 billion between December 31, 2017, and the end of the first quarter, due mainly to cash inflows from the sale of further 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.
  • The other financial liabilities as of March 31, 2018, contained €528 million related to 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 demonstrate good creditworthiness. In connection with the planned 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.
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