Net financial debt increased
Net financial debt | Jun 30, | Dec 31, | Change | ||
absolute | % | ||||
Interest-free loans | 1,036 | 1,014 | + 22 | + 2.2 | |
Finance lease liabilities | 490 | 501 | – 11 | – 2.2 | |
Other financial debt | 21,942 | 20,561 | + 1,381 | + 6.7 | |
thereof bonds | 19,724 | 19,616 | + 108 | + 0.6 | |
Financial debt | 23,468 | 22,076 | +1,392 | +6.3 | |
Cash and cash equivalents and | – 3,806 | –3,528 | –278 | +7.9 | |
Effects from currency hedges | 42 | 75 | –33 | –44.0 | |
Net financial debt | 19,704 | 18,623 | +1,081 | +5.8 | |
Net financial debt rose as of June 30, 2018. This resulted mainly from higher capital requirements for capital expenditures and working capital.
- Financial debt has increased significantly:
- Interest-free loans increased slightly due to valuation.
- Finance lease liabilities were down, mainly because of redemptions.
- Within other financial debt, liabilities from commercial paper increased significantly due to emissions (€+1,139 million).
- The euro value of outstanding bonds increased slightly due to emissions. Exchange rate effects did not play a significant role in the development.
- The effects of currency hedges, which are based on the hedged exchange rate at the time of issue, increased debt (as of 31 December 2017: increased debt), offsetting the positive effect on 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 increased significantly.
As a result of the issue of commercial paper, there was a structural shift as of June 30, 2018 to Bank borrowings/other. In contrast, the share of bonds in financial debt declined.