NOTE B11 Underlying net debt
- Index
- 1 NOTE B1 Net sales
- 2 NOTE B2 Underlying raw material & energy costs
- 3 NOTE B3 Underlying EBITDA
- 4 NOTE B4 Underlying depreciation & amortization
- 5 NOTE B5 Underlying net financial charges
- 6 NOTE B6 Underlying income taxes
- 7 NOTE B7 Underlying profit from discontinued operations
- 8 NOTE B8 CAPEX
- 9 NOTE B9 Free Cash Flow
- 10 NOTE B10 Net working capital
- 11 NOTE B11 Underlying net debt
- 12 NOTE B12 CFROI
- 13 NOTE B13 Research & Innovation
In € million |
|
2017 |
2016 |
|||||||||||||
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
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|
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Non-current financial debt |
a |
(3,182) |
(3,190) |
(3,512) |
(4,039) |
(4,087) |
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Current financial debt |
b |
(1,044) |
(2,004) |
(1,820) |
(1,322) |
(1,338) |
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Gross debt |
c = a+b |
(4,226) |
(5,194) |
(5,332) |
(5,361) |
(5,426) |
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Other financial instrument receivables |
d |
89 |
498 |
637 |
99 |
101 |
||||||||||
Cash & cash equivalents |
e |
992 |
1,358 |
1,156 |
1,094 |
969 |
||||||||||
Total cash and cash equivalents |
f = d+e |
1,080 |
1,856 |
1,792 |
1,193 |
1,070 |
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IFRS net debt |
g = c+f |
(3,146) |
(3,338) |
(3,540) |
(4,168) |
(4,356) |
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Perpetual hybrid bonds |
h |
(2,200) |
(2,200) |
(2,200) |
(2,200) |
(2,200) |
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Underlying net debt |
i = g+h |
(5,346) |
(5,538) |
(5,740) |
(6,368) |
(6,556) |
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Underlying EBITDA (last 12 months)(1) |
j |
2,230 |
2,217 |
2,455 |
2,348 |
2,283 |
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Adjustment for discontinued operations(2) |
k |
236 |
235 |
– |
158 |
236 |
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Adjusted underlying EBITDA for leverage calculation(2) |
l = j+k |
2,466 |
2,453 |
2,455 |
2,506 |
2,519 |
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Underlying leverage ratio(2) |
m = -i/l |
2.2 |
2.3 |
2.3 |
2.5 |
2.6 |
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FY 2017 underlying net debt bridge (in €million)
Underlying net debt[3] fell to €(5,346) million from €(6,556) million at the start of the year, an improvement of €1,210 million. Strong free cash flow generation and the divestment proceeds resulting from the strategic portfolio transformation reduced the gross debt position by €1,200 million, through the redemption of bonds at maturity and the repurchase operation in early October. The financing structure optimization improved the underlying leverage ratio from 2.6x at the start of the year to 2.2x, both on an adjusted basis[4].
[3] Underlying net debt includes the perpetual hybrid bonds, treated as equity under IFRS. Underlying net financial charges include the coupons on perpetual hybrid bonds, which are accounted as dividends under IFRS and thereby excluded from the P&L, as well as the financial charges and realized foreign exchange losses in the RusVinyl joint venture, which under IFRS are part of the earnings from associates & joint ventures and thereby included in the IFRS EBITDA.
[4] EBITDA of the discontinued Polyamide business was added to the denominator, as the proceeds to be received on completion do not yet reduce the net debt in the numerator.