FINANCIAL STRUCTURE

Debt and financing

We count on a solid financial structure that allows us to support our ambitious growth projects and to embrace future opportunities thanks to a strong cash flow generation.

Key balance sheet figures

(Million euros)

Medium and long-term financial indebtedness

Short-term financial indebtedness

Cash and cash equivalents

Net financial indebtedness

Lease liabilities

Total financial debt & lease liabilities

Total net equity

Net financial indebtedness/EBITDA1

Net financial indebtedness/Group net equity

31/12/2022

Medium and long-term financial indebtedness

807.9

Short-term financial indebtedness

251.7

Cash and cash equivalents

(229.6)

Net financial indebtedness

830.0

Lease liabilities

468.6

Total financial debt & lease liabilities

1,298.6

Total net equity

1,040.4

Net financial indebtedness/EBITDA1

1.52x

Net financial indebtedness/Group net equity

0.80x

31/12/2021

Medium and long-term financial indebtedness

1,023.8

Short-term financial indebtedness

165.8

Cash and cash equivalents

(318.4)

Net financial indebtedness

871.2

Lease liabilities

451.9

Total financial debt & lease liabilities

1,323.1

Total net equity

927.3

Net financial indebtedness/EBITDA1

1.68x

Net financial indebtedness/Group net equity

0.94x

1 Refers to the EBITDA recorded in the last 4 quarters, determined excluding the fair value of the share-based payments and based only on the recurring busines.

Debt composition and maturity

In order to ensure consistency between our financial structure and our strategic objectives, we diversify the composition and maturity of the debt.

Term

_

Rate

_

FINANCING

  • a €350 million “Eurobond” maturing in 2027, reserved exclusively for institutional investors, issued by Amplifon S.p.A. in 2020;
  • a private placement placed in the United States originally maturing between 2023 and 2025, whose residual debt at December 31, 2022 is equal to USD 110 million and held by the American subsidiary, which was fully repaid in advance at the end of January 2023;
  • nine bank loans amounting to €569 million, of which €117 million expiring in 2023, €225 million expiring in 2024, €122 million expiring in 2025 and €105 million expiring in 2026;
  • eight irrevocable lines of credit with top-tier banking institutions amounting to €255 million, of which €15 million expiring in 2024, €140 million in 2025 and €100 million in 2026.

COVENANTS

Some of the Group’s loans, bonds and revolving credit lines are subject to the following financial covenants:

  • the ratio of net financial indebtedness excluding lease liabilities to the Net Worth Ratio must not exceed 1.65; 
  • the Leverage Ratio, calculated as the ratio of net financial debt, excluding liabilities, to EBITDA recorded in the last four quarters (determined excluding the fair value of the stock-based payments, based solely on recurring business, and restated if the Group’s structure should change significantly), must not exceed 2.85;
  • the Interest Cover should be less than 4.9. It is calculated as the ratio of EBITDA (restated like the EBITDA used to calculate the leverage ratio) recorded in the last four quarters and the net interest owed in the same four quarters. 

In the event of relevant acquisitions, the above ratios may be increased to 2.20 and 3.26, respectively, for a period of not more than 12 months, twice over the life of the respective loans (spike). 

Rating

Since February 5th, 2020, we have placed non-convertible bond notes for 350 million euros with 7-year maturity. Amplifon has a public “BB+” corporate credit rating with a stable outlook by S&P Global Ratings Europe Limited (“S&P”), the same rating assigned to the bond notes.

CONSOLIDATED NET FINANCIAL DEBT MATURITY PROFILE

Milioni di euro

Private placement

Eurobond

Bank loans

Bank accounts

Other

Short-term investments

Cash & cash equivalents

Total

2023

Private placement

(85.4)

Eurobond

-

Bank loans

(116.7)

Bank accounts

(24.1)

Other

(25.5)

Short-term investments

49.9

Cash & cash equivalents

179.7

Total

(22.1)

2024

Private placement

-

Eurobond

-

Bank loans

(225.1)

Bank accounts

-

Other

(3.1)

Short-term investments

-

Cash & cash equivalents

-

Total

(228.2)

2025

Private placement

-

Eurobond

-

Bank loans

(122.1)

Bank accounts

-

Other

(2.6)

Short-term investments

-

Cash & cash equivalents

-

Total

(124.7)

2026

Private placement

-

Eurobond

-

Bank loans

(105.0)

Bank accounts

-

Other

-

Short-term investments

-

Cash & cash equivalents

-

Total

(105.0)

2027 & beyond

Private placement

-

Eurobond

(350.0)

Bank loans

-

Bank accounts

-

Other

-

Short-term investments

-

Cash & cash equivalents

-

Total

(350.0)

Total

Private placement

(85.4)

Eurobond

(350.0)

Bank loans

(568.9)

Bank accounts

(24.1)

Other

(31.2)

Short-term investments

49.9

Cash & cash equivalents

179.7

Total

(830.0)

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