Net Debt and Leverage

During 2014, GrandVision refinanced its main credit facility and its shareholder loans, actions which contributed to a decrease in the Company’s financial costs over the period and had a positive impact on the Company’s results. A new €1.2 billion 5-year revolving credit facility was established in September 2014 with a group of international banks. The facility has 2 one-year extension options.

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, the Company aims to maintain a leverage ratio (net debt over adjusted EBITDA for the last twelve months) of equal to or less than 2.0.

Borrowings

in millions of EUR (unless stated otherwise)

2014

2013

Total borrowings

1,053

934

Cash and cash equivalents

- 134

- 103

Derivatives (liabilities)

4

6

Derivatives (assets)

- 1

0

Net debt

922

837

Adjusted EBITDA

449

400

Net debt leverage (times)

2.1

2.1

Net debt amounted to €922 million as of 31 December 2014, compared with €837 million as of 31 December 2013. Net debt at year-end 2013 included shareholder loans, with aggregate principal amounts outstanding of €325 million.

Net debt expressed as a multiple of adjusted EBITDA for the last twelve months (also referred to as the leverage ratio) traded below 2.0x throughout the year, and stood at 2.1 as of 31 December 2014. The increase was mainly due to the financing of the acquisition of Angelo Randazzo in Italy close to year-end.