Financial key figures
Data are as at December 31, 2021
9,950Gross debt excluding IFRS 16 (€m)
6,630Net debt excluding IFRS 16 (€m)
13,018Gross debt including IFRS 16 (€m)
9,698Net debt including IFRS 16 (€m)
A2Stable / Moody's long term rating
AStable / S&P long term rating
EssilorLuxottica aims at maintaining continuous liquidity in order to ensure its independence and growth through significant and steady cash flows. The group also observes some liquidity principles aiming at securing funding availability at all times at the lowest possible costs. This principle relies upon the diversification of funding sources, the use of medium and long-term financings, the distribution of maturities over time, the recourse to credit facilities and the use of liquidity reserves.
Funding principles
- Liquidity management is centralized at the level of the group parent company.
- Source of funding diversification is the cornerstone of liquidity policy.
Rating
Maintaining a strong credit rating is the best way to provide an access to a wide range of funding sources. EssilorLuxottica credit ratings are based on the assessment of its credit profile and its ability to repay its debt by Moody’s and Standard & Poor’s. These ratings are purely indicative and may be modified at any time.
| Long term | Short term | Outlook | Last confirmation | |
|---|---|---|---|---|
| Moody's | A2 | Prime-1 | Stable | September 13, 2021 |
| Standard & Poor's | A | A-1 | Stable | April 14, 2022 |
Data are as at December 31, 2021
The group diversifies its financings across:
- instruments: bond, private placement, term loan, commercial paper, leasing;
- geographies: Europe, US, Asia, local markets;
- tenors: short-term, long-term;
- currencies;
- interest rates: floating, fixed, capped; and
- drawn/undrawn instruments.
Gross debt structure
Long term funding
Providing long-term funding helps securing the group’s ability to carry-out its strategy on a long-term horizon irrespective of potential market disruptions.
Short term funding
EssilorLuxottica entertains US commercial paper (USCP) and Negotiable EUropean commercial paper (NEU CP) programmes. They are a flexible and cost-effective tool to raise monies with very short notice, which is well-suited to working capital funding needs.
Net debt (currencies)
after FX swaps, in millions of €
Net debt (interest rates)
after IR swaps, in millions of €
Data are as at December 31, 2021
While the group mainly finances itself through financial markets, it also secures its permanent access to liquidity through long-term committed credit facilities (syndicated, bilateral lines and bridge facilities) concluded with a pool of close banks. Such credit facilities are a funding buffer and a back-up for the group’s short-term commercial paper programs.
As of December 31, 2021,
- all bank committed credit facilities were undrawn. Their aggregate amount significantly exceeded the upcoming debt maturities due in 2022/2023;
- available cash was €3,293 (€m).
As of December 31, 2021 the average maturity of the gross debt was 4.7 years.a
Debt Maturity Profile
In millions of €
1. Long term financing
EMTN: European Medium Term Notes
| Issuer | Information |
|---|---|
|
EssilorLuxottica |
Amount:€12bn Date of renewal: May 6, 2022 Maturity: Yearly renewal
Base Prospectus dated May 6, 2022 (PDF)
Archives: Base Prospectus dated May 12, 2021 (PDF) Base Prospectus dated May 26, 2020 (PDF) Second prospectus Supplement dated November 13, 2019 (PDF) Prospectus Supplement dated November 6, 2019 (PDF) Base Prospectus dated May 23, 2019 (PDF) Base Prospectus dated December 13, 2018 (PDF) Base Prospectus dated April 20, 2018 (PDF) Prospectus Supplement dated June 16, 2017 (PDF) Base Prospectus dated May 9, 2017 (PDF) Base Prospectus dated March 24, 2016 (PDF) Prospectus Supplement dated July 30, 2015 (PDF) Base Prospectus dated December 23, 2014 (PDF) Prospectus Supplement dated April 1, 2014 (PDF) |
| Luxottica Group S.p.A. |
Amount: €2bn Date of last renewal: May 9, 2014
Base prospectus dated May 9, 2014 (PDF)
Archives: Prospectus Supplement dated January 28, 2014 (PDF) |
Outstanding bonds
| Issuer | ISIN code | Instrument | Issue date | Maturity date | Currency | Issued amount | Coupon |
|---|---|---|---|---|---|---|---|
| EssilorLuxottica | FR0013463676 | Eurobond | November 27, 2019 | November 27, 2031 | € | 1 billion | 0.750 % |
| EssilorLuxottica | FR0013516077 | Eurobond | June 5, 2020 | June 5, 2028 | € | 1.25 billion | 0.5% |
| EssilorLuxottica | FR0013463668 | Eurobond | November 27, 2019 | November 27, 2027 | € | 1.5 billion | 0.375 % |
| EssilorLuxottica | FR0013516069 | Eurobond | June 5, 2020 | January 5, 2026 | € | 1.25 billion | 0.375% |
| EssilorLuxottica | FR0013463650 | Eurobond | November 27, 2019 | May 27, 2025 | € | 1.5 billion | 0.125 % |
| EssilorLuxottica | FR0011842913 | Eurobond | April 9, 2014 | April 9, 2024 | € | 300m | 2.375% |
| EssilorLuxottica | XS1030851791 | Eurobond* | February 10, 2014 | February 10, 2024 | € | 500m | 2.625% |
| EssilorLuxottica | FR0013516051 | Eurobond | June 5, 2020 | January 5, 2024 | € | 500m | 0.25% |
| EssilorLuxottica | FR0013463643 | Eurobond | November 27, 2019 | May 27, 2023 | € | 1 billion | 0 % |
| EssilorLuxottica | FR0013266236 | Eurodollar | June 30, 2017 | June 30, 2022 | $ | 300m | 2.5% |
| EssilorLuxottica | FR0011842939 | Eurobond | April 9, 2014 | April 9, 2021 | € | 500m | 1.75% |
*For further information, please visit www.luxottica.com
US Private Placements
| Issuer | Issue date | Outstanding Maturity dates | Currency | Issued amount | Outstanding amount as of December 31, 2021 |
|---|---|---|---|---|---|
| EssilorLuxottica | 2013 | 2023 | $ | 500m (7 tranches) |
30m |
| EssilorLuxottica | 2017 | 2022 / 2027 | $ | 300m (2 tranches) |
300m |
Bank credit facilities
As of December 31, 2021 EssilorLuxottica’s committed bank credit facilities amount to €2.84 billion equivalent, including
(i) a €1,750 million euros five-year syndicated credit facility entered into in 2021, encompassing two one-year extension options, reaching maturity in May 2028 after such options are exercised; and
(ii) several bilateral credit facilities;
(iii) a €600 million euros five-year syndicated credit facility entered in 2019 by GrandVision, reaching maturity in 2024.
All are undrawn.
2. Short term financing
| Issuer | Program | Signing date | Maturity date | Currency | Programme |
|---|---|---|---|---|---|
| EssilorLuxottica | US Commercial Paper | October 1, 2018 | / | $ | 2bn |
| EssilorLuxottica | Negotiable EUropean Commercial Paper (NEU CP) | July 29, 2020 | Yearly renewal | € | 3bn |