3.1 Interest-bearing financial liabilities and pledged or assigned assets

3.1.1 Interest-bearing financial liabilities

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CHF million

 

Within 1 year

 

Up to 5 years

 

Maturity over 5 years

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

Bonds (at fixed interest rates)

 

 

 

149

 

425

 

574

 

574

Other financial liabilities (at fixed interest rates) 1

 

17

 

79

 

 

 

96

 

102

Other financial liabilities (at variable interest rates)

 

90

 

1

 

 

 

91

 

100

Loans from pension fund institutions

 

1

 

 

 

 

 

1

 

4

Total

 

108

 

229

 

425

 

762

 

780

1 This category comprises other financial liabilities with a fixed interest period of more than three months.

Net debt, which is calculated as the difference between interest-bearing liabilities and cash and cash equivalents and marketable securities, decreased by CHF 6 million to CHF 232 million in the year under review (previous year: CHF 238 million). The reason for this slight decrease was primarily related to the free cash flow (CHF 132 million) minus the dividend payments to GF shareholders and minority shareholders amounting to CHF 114 million.  

The following table shows in detail the various categories of other financial liabilities by currency and interest rate:

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CHF million

 

Issuing currency

 

Range interest rate %

 

2019

 

Issuing currency

 

Range interest rate %

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Bonds (at fixed interest rates)

 

 

 

 

 

574

 

 

 

 

 

574

 

 

 

 

 

 

 

 

 

 

 

 

 

Bond (Georg Fischer Finanz AG) 2.5% 2013–2022 (12 September) Nominal value: CHF 150 million

 

CHF

 

2.6

 

149

 

CHF

 

2.6

 

149

Bond (Georg Fischer Finanz AG) 0.875% 2016–2026 (12 May) Nominal value: CHF 225 million

 

CHF

 

0.9

 

225

 

CHF

 

0.9

 

225

Bond (Georg Fischer AG) 1.05% 2018–2028 (12 April) Nominal value: CHF 200 million

 

CHF

 

1.06

 

200

 

CHF

 

1.06

 

200

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial liabilities (at fixed interest rates) 1

 

 

 

 

 

96

 

 

 

 

 

102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD

 

5.0

 

73

 

USD

 

5.0

 

46

 

 

CHF

 

1.5–4.3

 

7

 

CHF

 

1.1–1.5

 

29

 

 

EUR

 

1.0–1.4

 

15

 

EUR

 

1.9–5.0

 

17

 

 

CNY

 

 

 

 

 

CNY

 

6.1–7.6

 

7

 

 

Other

 

2.5

 

1

 

Other

 

5.0

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial liabilities (at variable interest rates)

 

 

 

 

 

91

 

 

 

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CNY

 

3.9–4.6

 

55

 

CNY

 

3.9–4.8

 

58

 

 

EUR

 

1.5–1.6

 

22

 

EUR

 

1.5–1.6

 

27

 

 

TRY

 

10.3–13.5

 

13

 

TRY

 

25.0

 

6

 

 

Other

 

3.1

 

1

 

Other

 

0.0–4.3

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans from pension fund institutions

 

 

 

 

 

1

 

 

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHF

 

1.0

 

1

 

CHF

 

1.0

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

762

 

 

 

 

 

780

1 This category comprises other financial liabilities with a fixed interest period of more than three months.

In the year under review GF concluded a new syndicated loan agreement:

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Debtors

 

Minimum Term

 

Credit

 

Thereof utilized

Georg Fischer Ltd/Georg Fischer Finanz AG

 

2019–2024

 

CHF 400 million

 

CHF 0 million

The syndicated credit line provides the GF Corporation with the financial flexibility to swiftly act as for instance in the case of acquisitions and was not drawn at the end of the year. In addition to other terms, the syndicated credit line is subject to a covenants with respect to the net debt ratio (ratio of net debt to EBITDA). The conditions of the syndicated credit line are considered to represent standard conditions for such types of arrangements.

The bonds placed on the market as well as the syndicated credit line are subject to standard 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 GF 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 1 million (previous year: CHF 4 million). 

Accounting principles

Financial liabilities comprise bank loans, mortgages, and bonds. They are recognized at their amortized cost. Borrowing costs are recognized in the income statement using the effective interest method. Borrowing costs that can be allocated directly to the construction, build-up, or purchase of a qualifying asset are capitalized as part of the acquisition or manufacturing costs of the asset.

3.1.2 Pledged or assigned assets

Assets pledged or restricted on title in part or whole amounted to CHF 12 million (previous year: CHF 16 million).

In the year under review, CHF 3 million (previous year: CHF 8 million) of pledged assets related to land and buildings. The decrease of CHF 4 million mainly arose from Hakan Plastik AS in the GF Piping Systems division. The company adjusted its financing structure.

CHF 1 million related to machinery and equipment (previous year: CHF 2 million), while CHF 5 million related to accounts receivable (previous year: CHF 6 million). There are no pledged or assigned inventories.

CHF 3 million related to liquid assets (previous year: CHF 0 million). The increase of CHF 3 million mainly arose from the Chinaust companies in the GF Piping Systems division. The companies have assigned cash deposits for the issuance of bankers drafts.

The assets are pledged or restricted on title as collateral for bank loans.

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