Net debt and leverage

GrandVision's 5-year revolving credit facility of €1.2 billion was extended for the second time in 2016 and now has a final maturity date of 17 September 2021. No further extension options are available.

The following table presents GrandVision’s net debt, as well as the net debt leverage, as of and for the periods indicated. Excluding the impact of any borrowings associated with and any adjusted EBITDA amounts attributable to any major acquisitions, GrandVision aims to maintain a leverage ratio (net debt over adjusted EBITDA for the last 12 months) of equal to or less than 2.0.

Borrowings

in millions of EUR
(unless stated otherwise)

2016

2015

Total borrowings

931

1,137

Cash and cash equivalents

- 181

- 198

Derivatives (liabilities)

5

3

Derivatives (assets)

- 5

- 1

Net debt

750

941

Adjusted EBITDA (last twelve months)

537

512

Net debt leverage (times)

1.4

1.8

At year-end 2016, GrandVision's net debt reduced from €941 million to €750 million and the net debt leverage ratio improved to 1.4 times adjusted EBITDA, compared to 1.8 times in 2015. The decrease in net debt was driven by the strong cash flow generation during 2016 in combination with fewer acquisitions compared to the previous year. In addition, 2015 also included the purchase of €50 million of treasury shares to cover expected future share deliveries related to long term incentive plans after the IPO, which did not re-occur at that scale in 2016.