Net financial debt has increased
Net financial debt | Jun 30, |
| Change | |||
absolute | thereof IFRS | % | ||||
Interest-free loans | 691 | 851 | – 160 | – | – 18.8 | |
Lease liabilities | 4,808 | 562 | + 4,246 | +4,272 | – | |
Other financial debts | 23,821 | 21,831 | + 1,990 | – | + 9.1 | |
thereof bonds | 21,463 | 20,712 | + 751 | – | + 3.6 | |
Financial debt | 29,320 | 23,244 | +6,076 | +4,272 | +26.1 | |
- Cash and cash equivalents and | – 3,915 | –3,718 | –197 | – | +5.3 | |
- Effects from currency hedges | 4 | 23 | –19 | – | –82.6 | |
Net financial debt | 25,409 | 19,549 | + 5,860 | +4,272 | + 30.0 | |
Net financial debt increased significantly as of June 30, 2019. This resulted primarily from the inclusion of lease liabilities from leases previously treated as operate leases (IFRS 16) and a net funding requirement, as the funding requirements for capital expenditures, working capital and capital costs could not be fully covered by internal financing.
- Financial debt increased noticeably:
- Interest-free loans fell as a result of redemptions.
- Leasing liabilities increased mainly due to the firsttime application of IFRS 16. Damping effects among others due to continuous redemptions were not material.
- Within other financial liabilities, liabilities from commercial paper increased significantly due to emissions (€ +1,263 million).
- The euro value of outstanding bonds was significantly higher due to emissions. Currency rate effects did not play a significant role in the development as a result of closed hedging transactions.
- Most of our foreign currency bonds are hedged against exchange rate through corresponding derivatives, with the result that the exchange rate effects are largely offset by the corresponding counterpart position of the hedge.
- Cash and cash equivalents rose slightly. The growth in financial debt was not substantially offset.
The composition of financial debt has moved in the direction of lease liabilities, mainly as a result of the application of IFRS 16. As a result of the issue of commercial paper, there was also a structural increase in the item bank borrowings/other. The share of bonds and interest-free loans on financial debt declined in the opposite direction.