Asset and Financial Position of the Bayer Group

Liquid Assets and Net Financial Debt

Net Financial Debt1

 

 

Dec. 31, 2017

 

June 30, 2018

 

Sep. 30, 2018

 

Change vs. June 30, 2018

 

 

€ million

 

€ 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.

5

These solely comprise the remaining interest in Covestro that is to be used to repay the convertible bond issued in 2017 that will mature in 2020.

Bonds and notes / promissory notes

 

12,436

 

35,495

 

35,595

 

+0.3

of which hybrid bonds2

 

4,533

 

4,535

 

4,536

 

.

Liabilities to banks

 

534

 

14,441

 

7,040

 

−51.2

Liabilities under finance leases

 

238

 

389

 

391

 

+0.5

Liabilities from derivatives3

 

240

 

201

 

208

 

+3.5

Other financial liabilities

 

970

 

1,603

 

616

 

−61.6

Receivables from derivatives3

 

(244)

 

(355)

 

(195)

 

−45.1

Financial debt

 

14,174

 

51,774

 

43,655

 

−15.7

Cash and cash equivalents

 

(7,581)

 

(4,981)

 

(4,850)

 

−2.6

Current financial assets4

 

(2,998)

 

(1,042)

 

(1,318)

 

+26.5

Noncurrent financial assets5

 

 

(1,054)

 

(963)

 

−8.6

Net financial debt

 

3,595

 

44,697

 

36,524

 

−18.3

  • Net financial debt of the Bayer Group declined by €8.2 billion in the third quarter of 2018, due mainly to proceeds from the sale of Crop Science businesses to BASF. These were used to partially repay the bridge financing for the Monsanto acquisition.
  • The other financial liabilities as of September 30, 2018, contained €307 million related to the mandatory convertible notes issued in November 2016.
  • Net financial debt includes three subordinated hybrid bonds with a total volume of €4.5 billion, 50% of which is treated as equity by the rating agencies. As such, the hybrid bonds have a positive impact on the Group’s rating-specific debt indicators.
  • The table below illustrates how the rating agencies assess our creditworthiness following the acquisition of Monsanto, with the investment-grade ratings from all three agencies demonstrating good creditworthiness.
Rating

Rating agency

 

Long-term rating

 

Short-term rating

 

Outlook

S&P Global Ratings

 

BBB

 

A2

 

stable

Moody’s

 

Baa1

 

P2

 

negative

Fitch Ratings

 

A–

 

F2

 

stable

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