The Group’s net finance expense is mainly related to finance expenses for the Group’s loans and borrowings, fair value changes on associated derivative instruments and foreign exchange gains and losses relating to the loans and borrowings.

Composition of net finance expenses

(In € million)


Year ended
31 Dec. 2019


Year ended
31 Dec. 2018

Interest income





Net foreign currency exchange gain





Net interest income on interest rate swaps




Finance income





Interest expense on:





-  Notes




-  Senior secured credit facilities





-  Lease liabilities





Amortisation of original issue discount





Amortisation of transaction costs





Net change in fair value of derivatives





Net interest expense on interest rate swaps




Net effect of early redemption of notes




Net effect of early repayment of term loans









Finance expenses





Net finance expense





The Group used part of the proceeds from the IPO in September 2018 and the proceeds from its new term loans taken up in connection with the IPO to redeem its notes and repay the term loans held prior to the IPO. The net effect of the early redemption of the notes was €82.5 million, which includes a redemption fee of €26.2 million. The net effect of the early repayment of the existing term loans was €56.3 million. The refinancing resulted in lower interest expense.

The increase of lease liabilities in the current period due to the adoption of IFRS 16 Leases on 1 January 2019 has resulted in higher interest expense on lease liabilities compared to the comparative period. See further note 5.2.

In the year ended 31 December 2018, the net foreign currency exchange gain primarily consisted of positive translation effects on loans and borrowings resulting from the strengthening of the Swiss Franc against the Euro.

Net change in fair value of derivatives consists of fair value changes on financing-related derivatives.

Other finance expenses primarily consist of revolver commitment fees, securitisation and factoring expenses and interest expense on current tax liabilities.