At 67.2%, the gearing ratio (net financial debt as a percentage of equity) as of March 31, 2020, rose significantly from its level of 46.6% as of the previous year’s reporting date. In addition to the negative earnings performance, this increase also stems from accounting rules and the redemption of the hybrid bond. The EUR 500 million hybrid bond issued in 2013 was repaid as of October 31, 2019. It was recognized in equity as of September 9, 2019, and refinanced through borrowings. Moreover, in the business year 2019/20 net financial debt increased by EUR 436.4 million due to the initial recognition pursuant to IFRS 16 of both the capitalization of right-of-use assets and the corresponding lease liabilities under rental and leasing contracts. Against this backdrop, the net financial debt rose by 20.8%, from EUR 3,125.4 million as of March 31, 2019, to EUR 3,775.0 million as of March 31, 2020. Equity fell in the same period by 16.3%, from EUR 6,709.8 million as of March 31, 2019, to EUR 5,614.9 million as of March 31, 2020.
Net financial debt can be broken down as follows:
Net financial debt |
||||
In millions of euros |
|
03/31/2019 |
|
03/31/2020 |
|---|---|---|---|---|
|
|
|
|
|
Financial liabilities, non-current |
|
2,661.8 |
|
3,889.7 |
Financial liabilities, current |
|
1,142.3 |
|
754.1 |
Cash and cash equivalents |
|
–485.9 |
|
–794.7 |
Other financial assets |
|
–182.3 |
|
–55.4 |
Loans and other receivables from financing |
|
–10.5 |
|
–18.5 |
Net financial debt |
|
3,125.4 |
|
3,775.0 |
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