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

31/12/2020

Medium and long-term financial indebtedness

1,023.8

Short-term financial indebtedness

116.0

Cash and cash equivalents

-268.6

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

31/12/2020

Medium and long-term financial indebtedness

1,103.3

Short-term financial indebtedness

75.4

Cash and cash equivalents

-545.0

Net financial indebtedness

633.7

Lease liabilities

422.8

Total financial debt & lease liabilities

1,056.4

Total net equity

801.9

Net financial indebtedness/EBITDA1

1.63x

Net financial indebtedness/Group net equity

0.80x

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

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Rate

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At December 31st, 2021, the Group’s medium/long- term debt stems for €653 million from floating rate bank loans, €530 million of which had been swapped to fixed rate debt at the date of this report. Variable rates are primarily indexed to Euribor (Europe Interbank Offered Rate). 

FINANCING

  • EUR 350 million “Eurobond” maturing in 2027, reserved exclusively for institutional investors, issued by Amplifon S.p.A. in 2020;
  • the residual debt of the private placement made by the US subsidiary expiring between 2023 and 2025, which amounted to USD 110 million at 31 December 2021;
  • Nine bank loans amounting to EUR 652.8 million, of which EUR 84.3 million expiring in 2022, EUR 116.6 million expiring in 2023, EUR 224.9 million expiring in 2024, EUR 122.1 million expiring in 2025, and EUR 105.0 million expiring in 2026;
  • Eight irrevocable lines of credit with top-tier banking institutions amounting to EUR 285 million, of which EUR 30 million expiring in 2022, EUR 15 million in 2024, EUR 140 million in 2025 and EUR 100 million expiring in 2026. These lines were not utilized in 2021.

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

2022

Private placement

-

Eurobond

-

Bank loans

(84.4)

Bank accounts

(68.4)

Other

(13.1)

Short-term investments

49.9

Cash & cash equivalents

268.6

Total

152.6

2023

Private placement

(46.6)

Eurobond

-

Bank loans

(116.7)

Bank accounts

-

Other

(18.8)

Short-term investments

-

Cash & cash equivalents

-

Total

(182.2)

2024

Private placement

-

Eurobond

-

Bank loans

(225.0)

Bank accounts

-

Other

(0.7)

Short-term investments

-

Cash & cash equivalents

-

Total

(225.7)

2025

Private placement

(38.8)

Eurobond

-

Bank loans

(122.1)

Bank accounts

-

Other

-

Short-term investments

-

Cash & cash equivalents

-

Total

(160.9)

2026 & beyond

Private placement

-

Eurobond

(350.0)

Bank loans

(105.0)

Bank accounts

-

Other

-

Short-term investments

-

Cash & cash equivalents

-

Total

(455.0)

Total

Private placement

(85.4)

Eurobond

(350.0)

Bank loans

(653.2)

Bank accounts

(68.4)

Other

(32.6)

Short-term investments

49.9

Cash & cash equivalents

268.6

Total

(871.2)

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