Liquid Assets and Net Financial Debt

Net Financial Debt1

 

 

Dec. 31,
2015

 

June 30,
2016

Sep. 30,
2016

 

Change vs. June 30, 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 the market values of interest-rate and currency hedges of recorded transactions and the market values of currency hedges for planned acquisitions.

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

 

15,547

 

16,165

16,121

 

–0.3

of which hybrid bonds2

 

4,525

 

4,527

4,528

 

.

Liabilities to banks

 

2,779

 

2,182

1,910

 

–12.5

Liabilities under finance leases

 

474

 

447

437

 

–2.2

Liabilities from derivatives3

 

753

 

708

537

 

–24.2

Other financial liabilities

 

369

 

175

198

 

+13.1

Receivables from derivatives3

 

(350)

 

(287)

(275)

 

–4.2

Financial liabilities

 

19,572

 

19,390

18,928

 

–2.4

Cash and cash equivalents

 

(1,859)

 

(1,055)

(1,232)

 

+16.8

Current financial assets4

 

(264)

 

(495)

(1,895)

 

.

Net financial debt

 

17,449

 

17,840

15,801

 

–11.4

  • Net financial debt of the Bayer Group decreased by €2 billion between June 30, 2016, and the end of the third quarter, due mainly to cash inflows from operating activities.
  • 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.
  • 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 investment-grade ratings document good creditworthiness. In connection with the agreed acquisition of Monsanto, both rating agencies are currently reviewing our ratings with regard to a potential downgrade.