13 Financial Liabilities

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€ million

 

2017

 

2016

 

 

Total

 

Of which noncurrent

 

Of which current

 

Total

 

Of which noncurrent

 

Of which current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities to banks

 

633.5

 

499.8

 

133.7

 

990.8

 

339.6

 

651.2

Liabilities from lease obligations

 

29.8

 

25.6

 

4.2

 

36.1

 

32.0

 

4.1

Other financial liabilities

 

338.3

 

275.0

 

63.3

 

431.3

 

419.5

 

11.8

Financial liabilities

 

1,001.6

 

800.4

 

201.2

 

1,458.2

 

791.1

 

667.1

 

 

 

 

 

 

 

 

 

 

 

 

 

In 2017, a promissory note (German Schuldschein) of €150 million and current loans in China were repaid on schedule and refinanced with a new investment loan for €200 million. Ongoing repayments of investment loans totaled €16 million. In the second half of 2017, WACKER repaid a further €200 million investment loan on schedule. Additionally, bank loans of ¥10 billion (€75.3 million) were repaid. Loans from minority shareholders in the amount of SG$61.6 million (€41.9 million) were also disposed of in the course of the deconsolidation of Siltronic.

No collateral exists for the financial liabilities, nor are they secured through liens or similar rights. Some of the liabilities to banks are fixed-interest while others have variable interest rates. Moreover, some of the liabilities to banks were granted on condition that particular covenants be complied with.

The liabilities to banks comprise the following:

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€ million

 

2017

 

2016

 

 

Currency

 

Carrying amount € million

 

Of which with variable interest rates

 

Maturity

 

Currency

 

Carrying amount € million

 

Of which with variable interest rates

 

Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment loan

 

 

 

 

 

 

 

EUR

 

200.0

 

 

2017

Investment loan

 

EUR

 

48.0

 

48.0

 

2020

 

EUR

 

64.0

 

64.0

 

2020

Investment loan

 

EUR

 

200.0

 

 

2022

 

 

 

 

 

 

Promissory note (German Schuldschein)

 

 

 

 

 

 

 

EUR

 

150.0

 

39.0

 

2017

Promissory note (German Schuldschein)

 

EUR

 

50.0

 

 

2018

 

EUR

 

50.0

 

 

2018

Bank loan

 

 

 

 

 

 

 

JPY

 

81.2

 

40.6

 

2017

Bank loan

 

 

 

 

 

 

 

BRL

 

7.3

 

 

2017

Bank loan

 

 

 

 

 

 

 

KRW

 

18.4

 

18.4

 

2017

Bank loan

 

 

 

 

 

 

 

CNY

 

109.5

 

 

2017

Bank loan

 

JPY

 

6.2

 

2.5

 

2018

 

JPY

 

4.0

 

 

2018

Bank loan

 

BRL

 

6.3

 

 

2018

 

 

 

 

 

 

Bank loan

 

KRW

 

15.7

 

15.7

 

2018

 

 

 

 

 

 

Bank loan

 

USD

 

208.9

 

208.9

 

2019

 

USD

 

237.6

 

237.6

 

2019

Bank loan

 

CNY

 

33.4

 

33.4

 

2019

 

 

 

 

 

 

Bank loan

 

CNY

 

25.7

 

25.7

 

2020

 

 

 

 

 

 

Operating loan

 

 

 

 

 

 

 

CNY

 

66.5

 

66.5

 

2017

Operating loan

 

 

 

 

 

 

 

JPY

 

1.8

 

1.8

 

2017

Operating loan

 

CNY

 

38.3

 

38.3

 

2018

 

 

 

 

 

 

Other

 

 

 

1.0

 

 

 

 

 

 

 

0.5

 

 

 

 

Total

 

 

 

633.5

 

 

 

 

 

 

 

990.8

 

 

 

 

Fair value

 

 

 

633.5

 

 

 

 

 

 

 

996.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial liabilities comprise the following:

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€ million

 

2017

 

2016

 

 

Currency

 

Carrying amount € million

 

Of which with variable interest rates

 

Maturity

 

Currency

 

Carrying amount € million

 

Of which with variable interest rates

 

Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private placement (1st installment)

 

USD

 

58.5

 

 

2018

 

USD

 

66.3

 

 

2018

Private placement (2nd installment)

 

USD

 

108.4

 

 

2020

 

USD

 

123.2

 

 

2020

Private placement (3rd installment)

 

USD

 

166.6

 

 

2023

 

USD

 

189.5

 

 

2023

Minority-shareholder loans

 

 

 

 

 

 

 

SGD

 

40.4

 

 

Indefinite

Sundry other financial liabilities

 

 

 

4.8

 

 

 

 

 

 

11.9

 

 

 

Total

 

 

 

338.3

 

 

 

 

 

 

 

431.3

 

 

 

 

Fair value

 

 

 

331.3

 

 

 

 

 

 

 

423.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The carrying amounts of the current financial liabilities correspond to the repayment amounts. With the exception of the euro-denominated investment loan in the amount of €48 million, all the loans fall due on maturity.

The following table shows the future redemption and interest payments for the bank liabilities and other financial liabilities.

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€ million

 

2018

 

2019

 

2020

 

2021

 

2022 to 2023

 

 

 

 

 

 

 

 

 

 

 

Redemption

 

197.0

 

258.3

 

150.3

 

 

366.2

Interest

 

21.9

 

15.1

 

9.3

 

7.8

 

9.3

There are also unused long-term lines of credit amounting to €901.1 million (€801.1 million a year earlier), where all the conditions for utilization have been met. They include a promissory note (German Schuldschein) in the amount of €300 million issued by WACKER in December 2017 and disbursed in January 2018.

As of the reporting date, the future minimum lease payments under finance lease agreements amounted to:

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€ million

 

2017

 

2016

 

 

Nominal value

 

Interest

 

Present value

 

Nominal value

 

Interest

 

Present value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minimum lease payment within a year

 

6.8

 

2.6

 

4.2

 

7.1

 

3.0

 

4.1

Minimum lease payment between one and five years

 

19.7

 

8.3

 

11.4

 

25.2

 

11.0

 

14.2

Minimum lease payment over five years

 

26.4

 

12.2

 

14.2

 

32.9

 

15.1

 

17.8

Total

 

52.9

 

23.1

 

29.8

 

65.2

 

29.1

 

36.1

 

 

 

 

 

 

 

 

 

There are no conditional lease payments from finance leases.

Wacker Chemie AG has capitalized a finance lease for the leased CCGT (combined-cycle gas turbine) power station at its Burghausen site. The lease for the power station is due to expire in 2019 at the latest. WACKER has the right to acquire the power station at a price oriented to book values in accordance with German commercial law. If WACKER acquires this power station, it may not be sold to a third party for five years.

WACKER also has leasing agreements for several technical facilities that qualify as finance leases and were capitalized accordingly. Here, too, the Group in some cases has rights of preemption and lease rollover options.

The lease agreements serve to simplify the procurement and financing of operating materials and fixed assets. The long-term commitment that they involve, however, leads to a constant future outflow of cash from which the company cannot extract itself.