13 Financial Liabilities

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€ million

 

2016

 

2015

 

 

Total

 

Of which noncurrent

 

Of which current

 

Total

 

Of which noncurrent

 

Of which current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities to banks

 

990.8

 

339.6

 

651.2

 

1,000.2

 

700.1

 

300.1

Liabilities from lease obligations

 

36.1

 

32.0

 

4.1

 

39.1

 

33.2

 

5.9

Other financial liabilities

 

431.3

 

419.5

 

11.8

 

416.1

 

403.4

 

12.7

Financial liabilities

 

1,458.2

 

791.1

 

667.1

 

1,455.4

 

1,136.7

 

318.7

 

 

 

 

 

 

 

 

 

 

 

 

 

In 2016, WACKER took out new bank loans for an amount totaling US$ 250 million (€237.6 million) and KRW (Korean won) 23.3 million (€18.4 million). A maturing, euro-denominated investment loan of €200 million was repaid on schedule and ongoing scheduled repayments of a further investment loan were made in the amount of €16 million. A renminbi-denominated investment loan of CNY 252.8 million (€34.6 million) falling due in 2018 was repaid ahead of schedule in 2016.

In 2015, the company made a scheduled repayment of €150 million on a promissory note (German Schuldschein). In addition, around €50 million was repaid on renminbi-denominated loans.

No collateral exists for the financial liabilities, nor are they secured through liens or similar rights. Some of the liabilities to banks have fixed interest rates and others have variable interest rates. Moreover, some of the liabilities to banks

were granted on condition that particular covenants be complied with.

The liabilities to banks comprise the following:

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€ million

 

2016

 

2015

 

 

Currency

 

Carrying amount € million

 

Of which with variable interest rates

 

Maturity

 

Currency

 

Carrying amount € million

 

Of which with variable interest rates

 

Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment loan

 

 

 

 

 

EUR

 

200.0

 

200.0

 

2016

Investment loan

 

EUR

 

200.0

 

 

2017

 

EUR

 

200.0

 

 

2017

Investment loan

 

CNY

 

 

 

2018

 

CNY

 

35.6

 

35.6

 

2018

Investment loan

 

EUR

 

64.0

 

64.0

 

2020

 

EUR

 

80.0

 

80.0

 

2020

Promissory notes (German Schuldscheine)

 

EUR

 

150.0

 

39.0

 

2017

 

EUR

 

150.0

 

39.0

 

2017

Bank loan

 

JPY

 

81.2

 

40.6

 

2017

 

JPY

 

76.1

 

38.0

 

2017

Bank loan

 

BRL

 

7.3

 

 

2017

 

BRL

 

5.8

 

 

2017

Bank loan

 

KRW

 

18.4

 

18.4

 

2017

 

KRW

 

 

 

2017

Bank loan

 

CNY

 

109.5

 

 

2017

 

CNY

 

112.8

 

 

2017

Bank loan

 

EUR

 

50.0

 

 

2018

 

EUR

 

50.0

 

 

2018

Bank loan

 

JPY

 

4.0

 

 

2018

 

JPY

 

 

 

2018

Bank loan

 

USD

 

237.6

 

237.6

 

2019

 

USD

 

 

 

2019

Operating loan

 

CNY

 

66.5

 

66.5

 

2017

 

CNY

 

 

 

2017

Operating loan

 

CNY

 

 

 

 

CNY

 

89.9

 

89.9

 

Operating loan

 

JPY

 

1.8

 

1.8

 

2017

 

JPY

 

 

 

2017

Other

 

 

 

0.5

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

990.8

 

 

 

 

 

 

 

1,000.2

 

 

 

 

Fair value

 

 

 

996.0

 

 

 

 

 

 

 

1,012.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial liabilities comprise the following:

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€ million

 

2016

 

2015

 

 

Currency

 

Carrying amount € million

 

Of which with variable interest rates

 

Maturity

 

Currency

 

Carrying amount € million

 

Of which with variable interest rates

 

Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private placement (1st installment)

 

USD

 

66.3

 

 

2018

 

USD

 

63.9

 

 

2018

Private placement (2nd installment)

 

USD

 

123.2

 

 

2020

 

USD

 

118.5

 

 

2020

Private placement (3rd installment)

 

USD

 

189.5

 

 

2023

 

USD

 

182.4

 

 

2023

Minority-shareholder loans

 

SGD

 

40.4

 

 

Indefinite

 

SGD

 

38.6

 

 

Indefinite

Sundry other financial liabilities

 

 

 

11.9

 

 

 

 

 

 

12.7

 

 

 

Total

 

 

 

431.3

 

 

 

 

 

 

 

416.1

 

 

 

 

Fair value

 

 

 

423.5

 

 

 

 

 

 

 

409.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The carrying amounts of the current financial liabilities correspond to the repayment amounts. With the exception of the euro-denominated investment loan in the amount of €64 million, all the loans fall due on maturity.

The following table shows the future redemption and interest payments for the bank liabilities and other financial liabilities.

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€ million

 

2017

 

2018

 

2019

 

2020

 

2021 to 2023

 

Indefinite maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

Redemption

 

663.0

 

136.6

 

253.6

 

139.6

 

188.9

 

40.4

Interest

 

31.9

 

20.2

 

15.1

 

10.9

 

23.2

 

1.6 p.a.

There are also unused long-term lines of credit amounting to €801.1 million (€602.8 million a year earlier), where all the conditions for their utilization have been met.

As of the reporting date, the future minimum lease payments under finance lease agreements amount to:

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€ million

 

2016

 

2015

 

 

Nominal value

 

Interest

 

Present value

 

Nominal value

 

Interest

 

Present value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minimum lease payment within a year

 

7.1

 

3.0

 

4.1

 

9.1

 

3.2

 

5.9

Minimum lease payment between one and five years

 

25.2

 

11.0

 

14.2

 

25.7

 

10.3

 

15.4

Minimum lease payment over five years

 

32.9

 

15.1

 

17.8

 

35.3

 

17.5

 

17.8

Total

 

65.2

 

29.1

 

36.1

 

70.1

 

31.0

 

39.1

 

 

 

 

 

 

 

 

 

There are no conditional lease payments from finance leases.

Wacker Chemie AG has capitalized a finance lease for the leased CCGT (combined-cycle gas turbine) power station at its Burghausen site. The lease for the power station is due to expire in 2019 at the latest. WACKER has the right to acquire the power station at a price oriented to book values in accordance with German commercial law. If WACKER acquires this power station, it may not be sold to a third party for five years.

WACKER also has leasing agreements for several technical facilities that qualify as finance leases and were capitalized accordingly. Here, too, the Group in some cases has rights of preemption and lease rollover options.

The lease agreements serve to simplify the procurement and financing of operating materials and fixed assets. The long-term commitment that they involve, however, leads to a constant future outflow of cash from which the company cannot extract itself.