Creditor Relations
Financing principles
Conservative financing structures constitute the central and basic idea of Vossloh's financing strategies. In the management of its capital structure, Vossloh focuses on the key data for companies with an investment grade rating. Financing and the provision of liquidity of the group of companies typically take place centrally through Vossloh AG as the Group holding company. High creditworthiness of contracting parties plays just as significant a role as our commitment to building and maintaining long-term relationships with our lending partners. Vossloh only uses derivative financial instruments to hedge specific risks from existing or expected future underlying transactions.
Financial position
At the end of the reporting year, financial liabilities amounted to €232.7 million and were thus significantly lower than the previous year’s figure of €320.0 million. €60 million of the financial liabilities were attributable to two Schuldschein loans placed in the 2023 fiscal year with terms of five and seven years (until July 2028 and 2030). The originally variable interest rate of the two Schuldschein loans was converted to fixed interest rates at the end of November 2023 with two payer interest rate swaps. A Schuldschein loan in the amount of €25 million with a term of seven years (until December 2028) and a fixed interest rate had already been placed at the end of 2021. A further €22 million of the financial liabilities at the end of 2024 were attributable to drawings on the new syndicated loan concluded early in February 2024 with a volume of €240 million and a term until February 2029. The interest rate is based on the respective reference interest rate (Euribor or €STR) and a margin agreed in the loan agreement, which is based on the ratio of net financial debt to EBITDA. A maximum amount is set for this ratio (covenant), which, if exceeded, gives the lending banks the option of early termination. Compliance with the covenant must be demonstrated every six months; this was the case at the end of the first half and at the end of 2024.
At the end of 2024 – unchanged from the previous year – a loan of €20 million with DZ Bank, which was renewed in mid-July, was outstanding with a term until July 2027 and a variable interest rate. Just under €19 million was also still outstanding under a bridge facility with variable interest rates that was concluded in July for the acquisition financing of the Sateba Group. In total, these credit lines amounted to just under €504 million at the end of 2024. Due to the repayments made and loan agreements renewed in the reporting year, the share of current financial liabilities fell from €198.4 million in the previous year to €62.2 million. Total cash and cash equivalents and short-term securities amounted to €95.0 million at the end of the reporting year (previous year: €100.5 million).
Contingent liabilities decreased from €29.0 million at the end of 2023 to €26.8 million. The former Locomotives business unit accounted for the bulk of this, with €21.1 million. For the outstanding contingent liabilities, Vossloh AG received an irrevocable and unconditional guarantee at first request from a first-class bank.
At the end of the year, the Group had committed but unused credit lines totaling €757.6 million (previous year: €244.4 million) available in addition to cash and cash equivalents.
The hybrid note issued in February 2021 of €150 million with an indefinite term can be called and repaid by the company for the first time after five years. The interest rate over the first five years is 4.0 %. Furthermore, the repayment amount can increase depending on the sustainability performance, which is measured using the ratings from ISS ESG and MSCI ESG Research. The structure of the note means that it is treated as equity in the consolidated financial statements. The resulting increase in the equity ratio and the associated strengthening of the balance sheet structure lead to significantly greater financial flexibility, which positively bolsters the implementation of the corporate strategy.
Breakdown of financial liabilities
| € million | 2024 | 2023 |
|---|---|---|
| Other noncurrent liabilities to banks | 109.6 | 95.1 |
| Noncurrent liabilities from leases | 37.2 | 26.5 |
| Bank overdrafts | 23.7 | 0.0 |
| Noncurrent financial liabilities | 170.5 | 121.6 |
| Current liabilities to banks | 6.5 | 37.1 |
| Bank overdrafts | 35.7 | 143.6 |
| Current liabilities from leases | 11.7 | 10.1 |
| Interest payable to hybrid capital investors | 5.1 | 5.1 |
| Liabilities for outstanding dividend payments | 1.1 | 0,0 |
| Other interest payable | 2.1 | 2.5 |
| Current financial liabilities | 62.2 | 198.4 |
| Financial liabilities | 232.7 | 320.0 |
Financial liabilities are generally measured at amortized cost. Current and noncurrent liabilities from leases result from the recognition of leases in accordance with IFRS 16. For the measurement of these items, see the explanations to Note 11 in the notes to the consolidated financial statements on page 174.
Due to the allocation of bank overdrafts to cash and cash equivalents in the cash flow statement, they are shown separately from current and noncurrent liabilities to banks in the table.
For the reconciliation of the IFRS 9 valuation categories, see pages 192 et seq. of the 2024 Annual Report, “Additional information on financial instruments.”