wrapper-img
Debt Financing

Debt Financing

KEY INFORMATION
A DIVERSIFIED DEBT
LIQUIDITY
EXISTING FINANCING SOURCES

Financial key figures:


Data are as at December 31, 2022


9,022

GROSS DEBT EXCLUDING IFRS 16 (€M)

7,063

NET DEBT EXCLUDING IFRS 16 (€M)

12,204

GROSS DEBT INCLUDING IFRS 16 (€M)

10,246

NET DEBT INCLUDING IFRS 16 (€M)

A2

STABLE / MOODY'S LONG TERM RATING 

A

STABLE / 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 27, 2023

Standard & Poor's

A

A-1

Stable

April 13, 2023


Data are as at December 31, 2022


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

GrossDebtStructure


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 €


nextdebtcurrencies


Net debt (interest rates)


AFTER IR SWAPS, IN MILLIONS OF €


nextdebtinterest


Data are as at December 31, 2022


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, 2022,

  • all bank committed credit facilities were undrawn. Their aggregate amount significantly exceeded the upcoming debt maturities due in 2023;
  • available cash was €1,960 (€m).

As of December 31, 2022 the average maturity of the gross debt was 3.6 years.a


Debt Maturity Profile


IN MILLIONS OF €


nextdebtprofit


1. Long term financing


EMTN: European Medium Term Notes



Outstanding bonds


Issuer

ISIN code

Instrument

Issue date

Maturity date

Currency

Coupon

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

Eurobond

June 30, 2017

June 30, 2022

300m

2.5%

EssilorLuxottica

FR0011842939

Eurobond

April 9, 2014

April 9, 2021

500m

1.75%



US Private Placements


Issuer

Issue date

Outstanding Maturity dates

Currency

Issued amount

Outstanding amount as of December 31, 2022

EssilorLuxottica

2013

2023

$

500m
(7 tranches)

30m

EssilorLuxottica

2017

2027

$

300m
(2 tranches)

100m


Bank credit facilities


As of December 31, 2022 EssilorLuxottica’s committed bank credit facilities amount to €2.3 billion equivalent, including

(i) a €1,750 million euros five-year syndicated credit facility entered in 2021, encompassing two one-year extension options, reaching maturity in May 2028 after such options are exercised; and

(ii) several bilateral credit facilities;

All are undrawn.


2. Short term financing


Issuer

Program

Signing date

Maturity date

Currency

Programme

EssilorLuxottica

US Commercial Paper

2023

/

$

2bn

EssilorLuxottica

Negotiable EUropean Commercial Paper (NEU CP)

July 7, 2022

Yearly renewal

300m
(2 tranches)

3bn