Notes to the Consolidated Financial Statements

1. Basic information and principles of the report

2. Changes in Group structure

3. Summary of significant accounting policies

4. Risk assessment and management

5. Management of capital

6. Marketable securities

7. Trade accounts receivable

8. Other current assets and current financial assets

9. Inventories

10. Property, plant and equipment

11. Other non-current assets and non-current financial assets

12. Goodwill and intangible assets

13. Short-term debt

14. Other current provisions and liabilities

15. Long-term debt

  2014 2013
Credit facilities 0.0 0.0
Other long-term debt 6.6 7.7
Total long-term debt 6.6 7.7

Credit facilities

On October 14, 2014, various credit facilities were made available to the Group by J. P. Morgan for the purposes of financing the acquisition of Sanitec (see  Note 32) and ensuring the Group’s financial flexibility. These credit facilities were syndicated to a group of 10 banks as at November 19, 2014. At the same time the Revolving Facility was added. These credit facilities consist of a tranche A (“Bridge Facility”), a tranche B (“Term Loan Facility”) and a firmly committed credit line (“Revolving Facility”). In 2014, no drawdown of these credit facilities took place.

The tranche A (“Bridge Facility”) of MCHF 900 represents bridge financing and is to be replaced by the issuing of bonds or other debt at a later date. This facility is available to the Group for 12 months, with the option of extending it twice for a period of six months each. The interest rate is variable and is based on the LIBOR rate plus a margin which increases over the term of the facility.

The tranche B (“Term Loan Facility”) of MEUR 400 is used for medium-term financing. This facility has a term of three years. The interest rate is variable and is based on the LIBOR rate plus a margin that is dependent on the net debt to EBITDA ratio.

The firmly committed credit line (“Revolving Facility”) of around MCHF 300 is intended to ensure the Group’s financial flexibility and replaces the existing credit line (“Revolving Facility”) of MCHF 150. The new credit line has a term of five years. The interest rate is variable and is based on the LIBOR rate plus a fixed margin. An additional fee is charged if this credit line is drawn down. Standard commitment fees are due for all credit facilities.

The credit facilities are secured by guarantees from Geberit AG and contain covenants and conditions typical for syndicated financing, including compliance with the following financial ratio:

  • Net debt/EBITDA: max. 2.50x

Other long-term debt

As of December 31, 2014, the Group had MCHF 6.6 of other long-term debt (PY: MCHF 7.7). This debt incurred an effective interest rate of 6.0% (PY: 6.0%).

Currency mix

Of the long-term debt outstanding as of December 31, 2014, MCHF 6.6 was denominated in EUR (PY: CHF 7.7).

16. Derivative financial instruments

17. Retirement benefit plans

18. Participation plans

19. Deferred tax assets and liabilities

20. Other non-current provisions and liabilities

21. Contingencies

22. Capital stock and treasury shares

23. Earnings per share

24. Other operating expenses, net

25. Financial result, net

26. Income tax expenses

27. Research and development expenditures

28. Cashflow figures

29. Segment reporting

30. Related party transactions

31. Foreign exchange rates

32. Subsequent events

33. Additional disclosures on financial instruments

34. Group companies as of December 31, 2014