Cash comprises cash on hand and in bank accounts as well as cash in transit. Cash equivalents are short-term, highly liquid investments (of initial maturity up to three months), that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. Valuation and outflows of cash and cash equivalents in foreign currencies are based on FIFO (First In First Out) method.
The Group classifies its loans and bonds to financial liabilities measured at amortized cost.
The Group uses simplified methods of the valuation of loans measured at amortized cost if it does not distort the information contained in the statement of financial position, in particular when the period until the repayment date is not long.
Loans for which the Group applies simplifications, are accounted at initial recognition and at the later date, including at the end of the reporting period, at the amount of payment due.
Changes in liabilities from financing activities
| Loans | Bonds | Cash and cash equivalents | Net debt | Lease | Change in liabilities from financing activities | |
|---|---|---|---|---|---|---|
| (A) | (B) | (C) | (A + B – C) | (D) | (A + B + D) | |
| 01/01/2019 (approved data) | 2,263 | 7,528 | 4,192 | 5,599 | 229 | 10,020 |
| Impact of IFRS 16 adoption | – | – | – | – | 3,352 | 3,352 |
| 01/01/2019 (converted data) | 2,263 | 7,528 | 4,192 | 5,599 | 3,581 | 13,372 |
| Cash changes | ||||||
| net proceeds/(outflows) | (111) | (1,000) | 1,962 | (3,073) | (656) | (1,767) |
| interest paid | (33) | (185) | – | (218) | (68) | (286) |
| Non-cash changes | ||||||
| foreign exchange differences | (42) | (53) | 5 | (100) | 2 | (93) |
| valuation of debt | 59 | 181 | – | 240 | 34 | 274 |
| new finance lease agreements, increase in leasing remuneration | – | – | – | – | 993 | 993 |
| other * | – | – | – | – | 112 | 112 |
| 31/12/2019 | 2,136 | 6,471 | 6,159 | 2,448 | 3,998 | 12,605 |
| Net financial gearing | 6.3% | |||||
| Net debt / EBITDA before net impairment allowances | 0.27 | |||||
| Loans | Bonds | Cash and cash equivalents | Net debt | Lease | Change in liabilities from financing activities | |
|---|---|---|---|---|---|---|
| (A) | (B) | (C) | (A + B – C) | (D) | (A + B + D) | |
| 01/01/2018 | 48 | 6,957 | 6,244 | 761 | 198 | 7,203 |
| Cash changes | ||||||
| net proceeds/(outflows) | 2,135 | 400 | (2,055) | 4,590 | (32) | 2,503 |
| interest paid | (27) | (195) | – | (222) | (9) | (231) |
| Non-cash changes | ||||||
| foreign exchange differences | (4) | 164 | 3 | 157 | – | 160 |
| valuation of debt | 111 | 202 | – | 313 | 8 | 321 |
| new finance lease agreements | – | – | – | – | 64 | 64 |
| 31/12/2018 | 2,263 | 7,528 | 4,192 | 5,599 | 229 | 10,020 |
| Net financial gearing | 15.7% | |||||
| Net debt / EBITDA before net impairment allowances | 0.61 | |||||
The Group defined net debt as: non-current and current loans, borrowings and bonds lower by cash and cash equivalents.
The Group to assess the level of debt used ratios: net financial gearing (net debt / equity (calculated as at the end of the period) x 100%) and net debt / EBITDA before net impairment allowances due to property, plant and equipment, intangible assets, right-of-use assets, other non-current assets and non-current assets classified as held for sale.