2017 Integrated Report – Departure into a new era

Net financial debt increased

Net financial debt
as of Dec 31 (€ million)

2017


2016

Change

absolute

%

Interest-free loans

1,014

1,172

– 158

– 13.5

Finance lease liabilities

501

533

– 32

– 6.0

Other financial debt

20,561

20,776

– 215

– 1.0

     thereof bonds

19,616

19,740

– 124

– 0.6

Financial debt

22,076

22,481

– 405

– 1.8

Cash and cash equivalents and receivables from financing

– 3,528

– 4,584

+ 1,056

– 23.0

Effects from currency hedges

75

– 273

+ 348

Net financial debt

18,623

17,624

+ 999

+ 5.7

Net financial debt rose as of December 31, 2017, mainly as a result of higher funds needed for capital expendi­­-tures, the payment due to the Disposal Fund Act and working capital.

  • Financial debt decreased slightly:
    • Interest-free loans were reduced by redemptions.
    • Finance lease liabilities were down, mainly because of redemptions.
    • The value in euros of outstanding bonds fell as a result of exchange rate effects (0.3 billion). These effects especially resulted from the development of the Swiss franc.
  • Currency hedges, which are based on the exchange rate hedged at the time of issue, increased debt (as of December 31, 2016: reduced it), offsetting the positive effect in the bond portfolio. Since our foreign currency-denominated bonds are, with very few exceptions, hedged against currency fluctuations by corresponding derivatives, exchange rate effects are offset by the corresponding opposite position of the hedge.
  • Cash and cash equivalents were reduced significantly.

The maturity structure of the financial debt was unchanged as of December 31, 2017.

CHART 2623

The composition of financial debt was largely unchanged as of December 31, 2017.

CHART 2625