Asset and Financial Position of the Bayer Group Liquid Assets and Net Financial Debt (XLS:) Download XLS 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.