- 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 |
|
2019 |
2018 |
|||
December 31 |
January 1 |
December 31 |
||||
|
||||||
Non-current financial debt |
a |
(3,382) |
(3,520) |
(3,180) |
||
Current financial debt |
b |
(1,132) |
(723) |
(630) |
||
IFRS gross debt |
c = a+b |
(4,513) |
(4,243) |
(3,810) |
||
Underlying gross debt |
d = c+h |
(6,313) |
(6,743) |
(6,310) |
||
Other financial instruments |
e |
119 |
101 |
101 |
||
Cash & cash equivalents |
f |
809 |
1,103 |
1,103 |
||
Total cash and cash equivalents |
g = e+f |
928 |
1,205 |
1,205 |
||
Net debt |
i = c+g |
(3,586) |
(3,038) |
(2,605) |
||
Perpetual hybrid bonds |
h |
(1,800) |
(2,500) |
(2,500) |
||
Underlying net debt |
j = i+h |
(5,386) |
(5,538) |
(5,105) |
||
Underlying EBITDA (last 12 months) |
k |
2,322 |
2,330 |
2,230 |
||
Adjustment for discontinued operations(1) |
l |
366 |
315 |
305 |
||
Adjusted underlying EBITDA for leverage calculation(1) |
m = k+l |
2,688 |
2,645 |
2,536 |
||
Underlying leverage ratio(1) |
|
2.0 |
2.1 |
2.0 |
||
FY 2019 underlying net debt bridge
(in €million)
Underlying net financial debt[5] was €(5.4) billion. Strong operational cash flow of €801 million funded dividends of €387 million as well as an additional voluntary pension contribution of €114 million. Taking into account other factors such as forex and M&A impact, net financial debt was reduced by €152 million and the underlying leverage ratio improved to 2.0x.
Solvay called a €0.70 billion hybrid bond at 4.20% in May 2019, which was partly pre-financed by a €0.30 billion hybrid bond at 4.25% issued in November 2018. In September 2019 Solvay also redeemed the outstanding US$800 million 3.400% notes due 2020, and partly replaced it by the issuance of a €600 million new bond at 0.50% in August. These steps contribute to a reduction in financial charges; full effects will be visible in 2020.
[5] Underlying net financial debt includes the perpetual hybrid bonds, accounted for as equity under IFRS.