Financial key figures
Data are as at June 30, 2021
9,554Gross debt excluding IFRS 16 (€m)
88Net debt excluding IFRS 16 (€m)
11,411Gross debt including IFRS 16 (€m)
1,945Net 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.
- Liquidity management is centralized at the level of the group parent company.
- Source of funding diversification is the cornerstone of liquidity policy.
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||August 1, 2019|
|Standard & Poor's||A||A-1||Stable||July 31, 2019|
Data are as at December 31, 2020
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;
- 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)
Net debt (interest rates)
Data are as at June 30, 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 June 30, 2021,
- all bank committed credit facilities were undrawn. Their aggregate amount significantly exceeded the upcoming debt maturities due in 2021/2022;
- available cash was €9,443 (€m), including €19 (€m) cash deposits with a maturity of less than 12 months.
As of June 30, 2021 the average maturity of the gross debt was 4.8 years.a
Debt Maturity Profile
1. Long term financing
EMTN: European Medium Term Notes
Date of renewal: May 12, 2021
Maturity: Yearly renewal
|Luxottica Group S.p.A.||
Date of last renewal: May 9, 2014
|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||$||300m||2.5%|
|EssilorLuxottica||FR0011842939||Eurobond||April 9, 2014||April 9, 2021||€||500m||1.75%|
*For further information, please visit www.luxottica.com
US Private Placements
|Issuer||Issue date||Outstanding Maturity dates||Currency||Issued amount||Outstanding amount as of June 30, 2021|
|EssilorLuxottica||2017||2022 / 2027||$||300m
Bank credit facilities
As of June 30, 2021 EssilorLuxottica’s committed bank credit facilities amount to €5.4 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 €3,000 million euros bridge facility, dedicated to the GrandVision financing, reaching maturity in July 2021
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|