Creditor Relations
The Group covers its financing requirements by maintaining a balanced ratio of equity to liabilities. This ensures our financial stability whilst providing adequate flexibility. Our most important source of funds is net cash from operating activities. Current rating agency assessments reflect our company’s high creditworthiness, enabling us to cover our borrowing requirements via a number of independent financing sources, including confirmed bilateral credit lines, commercial papers, bonds and structured financing transactions, and operating leases. Most of the borrowings are taken out centrally in order to leverage economies of scale and specialisation benefits and to minimise the cost of capital.
At the reporting date of 30 September 2009, the Group’s financial liabilities were €7,195 million and of the Group’s unsecured committed credit lines of approximately €2.8 billion, €200 million was used.
The sale of Postbank significantly reduced our net debt/net liquidity since the beginning of the year. Although financial liabilities increased following subscription of the mandatory exchangeable bond and payment of the collateral for the put option on the remaining Postbank shares, the cash and financial instruments received in exchange for the Postbank shares increased. However, we have not included the mandatory exchangeable bond when calculating net debt, as it will be paid for in full by Postbank shares. As a result, net debt/net liquidity decreased from €2,412 million to €–16 million between 31 December 2008 and the reporting date 30 September 2009.
Net debt/-liquidity calculation (continuing operations)
| €m | |||||
| 30/09/2008 | 31/12/2008 | 31/03/2009 | 30/06/2009 | 30/09/2009 | |
| Non-current financial liabilities | 3,385 | 3,318 | 7,163 | 6,898 | 6,903 |
| + Current financial liabilities | 1,082 | 779 | 300 | 340 | 292 |
| = Financial liabilities | 4,467 | 4.097 | 7,463 | 7,238 | 7,195 |
| – Cash and cash equivalents | 1,245 | 1,350 | 3,511 | 3,222 | 2,729 |
| – Financial instruments | 154 | 50 | 2,563 | 1,236 | 1,689 |
| – Long-term deposits1) | 310 | 256 | 259 | 0 | 120 |
| – Financial liabilities to Williams Lea minority shareholders |
30 | 29 | 32 | 35 | 33 |
| – Mandatory exchangeable bond2) |
0 | 0 | 2,579 | 2,609 | 2,640 |
| = Net debt/ -liquidity | 2,728 | 2,412 | –1,481 | 136 | –16 |
- 1)
- Listed on the balance sheet under assets available for sale.
- 2)
- Listed on the balance sheet under non-current financial liabilities.
