Funding

Syndicated credit line and loan from the European Investment Bank ensure sufficient liquidity

In order to ensure sufficient liquidity, DEUTZ has at its disposal a syndicated, revolving working capital facility of €160 million provided by a consortium of banks. This is an unsecured, floating-rate credit line and runs until June 2023.

In addition, we have an amortising loan from the European Investment Bank with a remaining balance of €25.2 million at 31 December 2018. This loan, which is also unsecured, is repayable in instalments until July 2020. We have hedged the interest-rate risk arising from this loan.

As part of the contractual agreements for both loans, DEUTZ is obliged to comply with certain financial covenants. They do not limit our leeway for growth projects, however. The working capital facility and the loan from the European Investment Bank have enabled us to secure funding for our projects and for further growth over the coming years.

DEUTZ Group: Change in cash and cash equivalents

DEUTZ-Group_Change in cash and cash_equivalents 0 140 175 210 245 35 70 105 280 315 350 € million 143.8Cash and cash equivalents (31 Dec 2017) 97.5Cash flow from operating activities 9.8Net cash used for acquisition of subsidiaries 132.8Cash and cash equivalents (31 Dec 2018) –90.1Net cash used for investing activities 1 ) –28.2Change related to exchange rates Capital expenditure on intangible assets, investments, property, plant and equipment. 1)

Receivables management optimised by means of factoring

The sale of receivables is an important way of optimising receivables management. Because the credit quality of our customer receivables is excellent, factoring is also a cost-effective way of improving working capital, especially as considerable cash resources are tied up by the preliminary financing of production and due to the payment terms that we have granted to our customers. The volume of sales of receivables on the balance sheet date was slightly higher than at the end of 2017 as a result of the business situation, the volume as at 31 December 2018 being around €142 million (31 December 2017: €117 million).