Asset and Financial Position of the Bayer Group

Liquid Assets and Net Financial Debt

Net Financial Debt1

 

 

Dec. 31,
2017

 

March 31,
2018

 

June 30,
2018

 

Change vs. March 31, 2018

 

 

€ million

 

€ million

 

€ million

 

%

1

For definition see Annual Report 2017, Chapter “Alternative Performance Measures Used by the Bayer Group.”

2

Classified as debt according to IFRS

3

These include the market values of interest-rate and currency hedges of recorded transactions.

4

These include short-term loans and receivables with maturities between 3 and 12 months outstanding from banks and other companies as well as financial investments in debt and equity instruments that were recorded as current on first-time recognition.

5

These solely comprise the remaining interest in Covestro that is to be used to repay the convertible bond issued in 2017 that will mature in 2020.

Bonds and notes / promissory notes

 

12,436

 

12,290

 

35,495

 

+188.8

of which hybrid bonds2

 

4,533

 

4,534

 

4,535

 

.

Liabilities to banks

 

534

 

611

 

14,441

 

.

Liabilities under finance leases

 

238

 

248

 

389

 

+56.9

Liabilities from derivatives3

 

240

 

199

 

201

 

+1.0

Other financial liabilities

 

970

 

686

 

1,603

 

+133.7

Receivables from derivatives3

 

(244)

 

(223)

 

(355)

 

+59.2

Financial debt

 

14,174

 

13,811

 

51,774

 

.

Cash and cash equivalents

 

(7,581)

 

(5,332)

 

(4,981)

 

−6.6

Current financial assets4

 

(2,998)

 

(6,829)

 

(1,042)

 

−84.7

Noncurrent financial assets5

 

 

 

(1,054)

 

.

Net financial debt

 

3,595

 

1,650

 

44,697

 

.

  • Net financial debt of the Bayer Group increased to €44.7 billion in the second quarter of 2018 due to the acquisition of Monsanto.
  • Measures undertaken to finance the acquisition included the issuance in June 2018 of US$15 billion and €5 billion in bonds via our subsidiaries Bayer U.S. Finance II LLC, Pittsburgh, United States, and Bayer Capital Corporation B.V., Mijdrecht, Netherlands, respectively.
  • Bonds with a nominal value of US$6.9 billion were acquired from Monsanto in connection with the acquisition.
  • The increase in liabilities to banks mainly resulted from the use of the bridge financing for the acquisition of Monsanto.
  • The other financial liabilities as of June 30, 2018, contained €530 million related to the mandatory convertible notes issued in November 2016 and €730 million in commercial paper.
  • Net financial debt includes three subordinated hybrid bonds with a total volume of €4.5 billion, 50% of which is treated as equity by the rating agencies. As such, the hybrid bonds have a positive impact on the Group’s rating-specific debt indicators.
  • The table below illustrates how the rating agencies assess our creditworthiness following the acquisition of Monsanto, with the investment grade ratings from all three agencies demonstrating good creditworthiness:
Rating

Rating agency

 

Long-term rating

 

Short-term rating

 

Outlook

S&P Global Ratings

 

BBB

 

A–2

 

stable

Moody’s

 

Baa1

 

P–2

 

negative

Fitch Ratings

 

A–

 

F2

 

stable

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