Financial key figures
Data are as at June 30, 2020
10,281Gross debt excluding IFRS 16 (€m)
2,358Net debt excluding IFRS 16 (€m)
12,432Gross debt including IFRS 16 (€m)
4,059Net 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 | August 1, 2019 |
| Standard & Poor's | A | A-1 | Stable | July 31, 2019 |
Data are as at June 30, 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;
- 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 June 30, 2020
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, 2020,
- all bank committed credit facilities were undrawn. Their aggregate amount significantly exceeded the upcoming debt maturities due in 2020/2021;
- available cash was €7,889 (€m), including €516 (€m) cash deposits with a maturity of less than 12 months.
As of June 30, 2020 the average maturity of the gross debt was 6 years.
Debt Maturity Profile
In millions of €
1. Long term financing
EMTN: European Medium Term Notes
| Issuer | Information |
|---|---|
|
EssilorLuxottica |
Amount:€12bn Date of renewal: May 26, 2020 Maturity: Yearly renewal
Base Prospectus dated May 26, 2020 (PDF)
Archives: 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 | FR0013516051 | Eurobond | June 5, 2020 | January 5, 2024 | € | 500m | 0.25% |
| EssilorLuxottica | FR0013516069 | Eurobond | June 5, 2020 | January 5, 2026 | € | 1.25 billion | 0.375% |
| EssilorLuxottica | FR0013516077 | Eurobond | June 5, 2020 | June 5, 2028 | € | 1.25 billion | 0.5% |
| 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 December 31, 2019 |
|---|---|---|---|---|---|
| EssilorLuxottica | 2013 | 2020 / 2023 | $ | 500m (7 tranches) |
165m |
| EssilorLuxottica | 2017 | 2022 / 2027 | $ | 300m (2 tranches) |
300m |
Bank credit facilities
As of June 30, 2020 EssilorLuxottica’s committed bank credit facilities amount to €5.4 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;
(iii) a €3,000 million euros bridge facility, dedicated to the GrandVision financing which may, under certain conditions and at the Company option, be extended until July 2022
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 |