Net financial debt increased
|Net financial debt as of Dec 31 (€ million)|
Finance lease liabilities
Other financial debt
Cash and cash equivalents and receivables from financing
Effects from currency hedges
Net financial debt
Net financial debt rose significantly as of December 31, 2018. This resulted mainly from higher capital requirements for capital expenditures and working capital.
- Financial debt increased noticeably:
- Interest-free loans were reduced by redemptions.
- Finance lease liabilities increased as a result of acquisitions and as a consequence of changes in two rental properties. The impact was dampened by consistent redemption, amongst others factors.
- The key factor was that the euro value of the outstanding bonds increased significantly because of the new issues. Exchange rate effects did not play a significant role in development as a result of hedging transactions.
- The effects of currency hedges, which are based on the hedged exchange rate at the time of issue, increased debt (as of December 31, 2017: increased debt) but were, however, not significant. 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 increased slightly and to an extent balanced out the increase in financial debt.
The maturity structure and composition of financial debt were largely unchanged as of December 31, 2018.