13 Interest-bearing financial liabilities
Net debt, which is calculated as the difference between interest-bearing liabilities and the cash, and cash equivalents, and marketable securities, decreased by CHF 24 million to CHF 214 million in the year under review (previous year: CHF 238 million). The reason for this decrease is primarily the high free cash flow, in the amount of CHF 135 million. This was offset by the dividend payment to GF shareholders and minority shareholders amounting to CHF 89 million (previous year: CHF 77 million).
Interest-bearing financial liabilities consist of the following items:
|
CHF million |
|
Within 1 year |
|
Up to 5 years |
|
Maturity over 5 years |
|
2016 |
|
Within 1 year |
|
Up to 5 years |
|
Maturity over 5 years |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial liabilities (at fixed interest rates) 1 |
|
16 |
|
72 |
|
19 |
|
107 |
|
17 |
|
73 |
|
33 |
|
123 |
|
Other financial liabilities (at variable interest rates) |
|
129 |
|
5 |
|
|
|
134 |
|
141 |
|
6 |
|
1 |
|
148 |
|
Bonds (at fixed interest rates) |
|
|
|
150 |
|
373 |
|
523 |
|
200 |
|
150 |
|
149 |
|
499 |
|
Loans from pension fund institutions |
|
29 |
|
|
|
|
|
29 |
|
27 |
|
|
|
|
|
27 |
|
Total |
|
174 |
|
227 |
|
392 |
|
793 |
|
385 |
|
229 |
|
183 |
|
797 |
1 This category comprises other financial liabilities with a fixed interest period of more than three months.
In order to secure non-current liabilities, assets valued at CHF 16 million (previous year: CHF 16 million) were pledged or assigned as collateral. These assets consisted of property, valued at CHF 2 million (previous year: CHF 2 million) and buildings valued at CHF 14 million (previous year: CHF 14 million).
Further information on pledged assets can be found in note 22.
The table below shows in detail the various categories of other financial liabilities by currency and interest rate:
|
CHF million |
|
Issuing currency |
|
Range interest rate % |
|
2016 |
|
Issuing currency |
|
Range interest rate % |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial liabilities (at fixed interest rates) 1 |
|
|
|
|
|
107 |
|
|
|
|
|
123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHF |
|
1.1–3.5 |
|
22 |
|
CHF |
|
1.1–3.5 |
|
22 |
|
|
|
EUR |
|
2.5–5.0 |
|
64 |
|
EUR |
|
4.7–5.1 |
|
73 |
|
|
|
CNY |
|
6.1–7.6 |
|
13 |
|
CNY |
|
6.1–7.6 |
|
14 |
|
|
|
Other |
|
4.3–13.3 |
|
8 |
|
Other |
|
4.3–13.3 |
|
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial liabilities (at variable interest rates) |
|
|
|
|
|
134 |
|
|
|
|
|
148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNY |
|
3.9–5.3 |
|
74 |
|
CNY |
|
5.0–6.0 |
|
54 |
|
|
|
TRY |
|
12.6–14.5 |
|
23 |
|
TRY |
|
9.2–14.7 |
|
63 |
|
|
|
EUR |
|
1.0–2.0 |
|
32 |
|
EUR |
|
1.1–2.0 |
|
25 |
|
|
|
Other |
|
0.0–9.3 |
|
5 |
|
Other |
|
0.0–17.3 |
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds (at fixed interest rates) |
|
|
|
|
|
523 |
|
|
|
|
|
499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bond (Georg Fischer Ltd) 3 3/8% 2010-2016 (12 May) Nominal value: CHF 200 million |
|
|
|
|
|
|
|
CHF |
|
3.7 |
|
200 |
|
Bond (Georg Fischer Finanz AG) 1 1/2% 2013-2018 (12 September) Nominal value: CHF 150 million |
|
CHF |
|
1.6 |
|
150 |
|
CHF |
|
1.6 |
|
150 |
|
Bond (Georg Fischer Finanz AG) 2 1/2% 2013-2022 (12 September) Nominal value: CHF 150 million |
|
CHF |
|
2.6 |
|
149 |
|
CHF |
|
2.6 |
|
149 |
|
Bond (Georg Fischer Finanz AG) 7/8% 2016-2026 (12 May) Nominal value: CHF 225 million |
|
CHF |
|
0.9 |
|
224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans from pension fund institutions |
|
|
|
|
|
29 |
|
|
|
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR |
|
6.0 |
|
25 |
|
EUR |
|
6.0 |
|
26 |
|
|
|
CHF |
|
2.0 |
|
4 |
|
CHF |
|
2.0 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
793 |
|
|
|
|
|
797 |
1 This category comprises other financial liabilities with a fixed interest period of more than three months.
In the year under review, the issue of a ten-year bond of over CHF 225 million allowed GF to improve the balance of the maturity structure. In addition, GF was able to benefit from significantly better conditions for this transaction.
GF has the following syndicated loan:
|
Debtors |
|
Term |
|
Credit |
|
Thereof utilized |
|
Georg Fischer Ltd/Georg Fischer Finanz AG |
|
2015–2020 |
|
CHF 250 million |
|
CHF 0 million |
The syndicated loan gives GF the necessary financial security to be able to act swiftly in the event it wishes to make acquisitions. This line of credit was not drawn on in the year under review. In addition to other terms, the loan is subject to covenants with respect to the net debt ratio (ratio of net debt to EBITDA), the interest-coverage ratio (ratio of EBITDA to net interest expense), and the equity ratio (ratio of equity to total assets). The loan has additional terms such as are usual for a syndicated loan. Due to the improvement in EBITDA compared with the previous year and the low level of net debt, the expense relating to this loan could be further reduced.
The bonds placed on the market as well as the syndicated loan are subject to the usual cross-default clauses, whereby the outstanding amounts may all become due if early repayment of another loan is demanded of the company or one of its main Corporate Companies owing to a failure to meet the credit terms. As of the balance sheet date, the effective credit terms had been met.
The interest-bearing financial liabilities also include loans payable to employee benefit plans in the amount of CHF 29 million (previous year: CHF 27 million).
