In € million

 

 

 

2018

 

2017

   

December 31

 

December 31

(1)

As net debt at the end of the period does not yet reflect the net proceeds to be received on the divestment of discontinued operations, whereas the underlying EBITDA excludes the contribution of discontinued operations, the underlying EBITDA is adjusted to calculate the leverage ratio. Polyamide’s underlying EBITDA was added.

Non-current financial debt

 

a

 

(3,180)

 

(3,182)

Current financial debt

 

b

 

(630)

 

(1,044)

Gross debt

 

c = a+b

 

3,810

 

(4,226)

Other financial instrument receivables

 

d

 

101

 

89

Cash & cash equivalents

 

e

 

1,103

 

992

Total cash and cash equivalents

 

f = d+e

 

1,205

 

1,080

IFRS net debt

 

g = c+f

 

(2,605)

 

(3,146)

Perpetual hybrid bonds

 

h

 

(2,500)

 

(2,200)

Underlying net debt

 

i = g+h

 

(5,105)

 

(5,346)

Underlying EBITDA (last 12 months)

 

j

 

2,230

 

2,230

Adjustment for discontinued operations(1)

 

k

 

305

 

236

Adjusted underlying EBITDA for leverage calculation(1)

 

l = j+k

 

2,536

 

2,466

Underlying leverage ratio(1)

 

m = -i/l

 

2.0

 

2.2

FY 2018 underlying net debt bridge
(in €million)

Underlying net debt (bar chart)

Underlying net financial debt[2] reduced to €(5.1) billion, from €(5.3) billion at the start of the year, thanks to the strong operational deleveraging, bringing the underlying leverage ratio down from 2.2x to 2.0x. The dividend payments to Solvay shareholders of €(372) million were more than covered by free cash flow delivery. Remeasurements were €(90) million, attributable to the appreciation of the U.S. dollar by 4.7% over the year affecting the conversion of U.S. dollar-denominated debt. M&A activities had a net €(28) million impact.

Underlying gross financial debt was €(6.3) billion, including €(2.5) billion perpetual hybrid bonds. In June 2018 Solvay repaid €382 million on a euro-denominated bond that came to maturity. In November 2018 Solvay successfully placed a perpetual hybrid bond for €(300) million, to be used for general corporate purposes, including the possibility to refinance the existing €(700) million hybrid bond with a first call date in May 2019.

[2] Underlying net financial debt includes the perpetual hybrid bonds, accounted for as equity under IFRS.