Financial key figures
Data are as at June 30, 2019
4,310Gross debt excluding IFRS 16 (€m)
2,772Net debt excluding IFRS 16 (€m)
6,266Gross debt including IFRS 16 (€m)
4,728Net 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 June 30, 2019 - except graphs on Net debt (currencies) and Net debt (interest rates) which are as at December 31, 2018 and reviewed annually
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, 2019
While the group mainly finances itself through financial markets, it also secures its permanent access to liquidity through long-term committed credit facilities (syndicated or bilateral lines) 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 programmes.
As of June 30, 2019,
- all bank committed credit facilities were undrawn. Their aggregate amount significantly exceeded the upcoming debt maturities due in 2019/2020;
- available cash was €1,538 (€m).
As of June 30, 2019 the average maturity of the gross debt was 2 years.
Debt Maturity Profile
1. Long term financing
EMTN: European Medium Term Notes
Date of renewal: May 23, 2019
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||FR0011842939||Eurobond||April 9, 2014||April 9, 2021||€||500m||1.75%|
|EssilorLuxottica||FR0011842913||Eurobond||April 9, 2014||April 9, 2024||€||300m||2.375%|
|EssilorLuxottica||FR0013266236||Eurodollar||June 30, 2017||June 30, 2022||$||300m||2.5%|
|EssilorLuxottica||XS1030851791||Eurobond*||February 10, 2014||February 10, 2024||€||500m||2.625%|
|EssilorLuxottica||FR0013463643||Eurobond||November 27, 2019||May 27, 2023||€||1 billion||0 %|
|EssilorLuxottica||FR0013463650||Eurobond||November 27, 2019||May 27, 2025||€||1.5 billion||0.125 %|
|EssilorLuxottica||FR0013463668||Eurobond||November 27, 2019||November 27, 2027||€||1.5 billion||0.375 %|
|EssilorLuxottica||FR0013463676||Eurobond||November 27, 2019||November 27, 2031||€||1 billion||0.750 %|
*For further information, please visit www.luxottica.com
US Private Placements
|Issuer||Issue date||Outstanding Maturity dates||Currency||Issued amount||Outstanding amount as of June 30, 2019|
|EssilorLuxottica||2013||2019 / 2023||$||500m
|EssilorLuxottica||2017||2022 / 2027||$||300m
Bank credit facilities
As at June 30, 2019, EssilorLuxottica’s committed bank credit facilities amount to €2.3 billion equivalent, including:
(i) a €900 million euros five-year syndicated credit facility entered into in 2015, encompassing two one-year extension options, reaching maturity in December 2022 after such options are exercised; and
(ii) several bilateral credit facilities;
All are undrawn.
As at June 30, 2019, bank loans amounted to €500 million:
|Luxottica Group S.p.A.||March 10, 2017||March 10, 2022||€||250m||Euribor 3m + 0.70%|
|Luxottica Group S.p.A.||March 10, 2017||March 10, 2022||€||250m||Euribor 3m + 0.62%|
2. Short term financing
|Issuer||Program||Signing date||Maturity date||Currency||Programme|
|EssilorLuxottica||US Commercial Paper||October 1, 2018||/||$||2bn|
|EssilorLuxottica||Negotiable EUropean Commercial Paper (NEU CP)||June 25, 2019||Yearly renewal||€||1.5bn|