The overriding goals of the financial management of the K+S Group include:
- securing liquidity and controlling it efficiently across the Group,
- maintaining and optimising the financial capacity of the Group as well as
- reducing financial risks also by means of financial instruments.
In cash management we focus on the management of our liquidity as well as the optimisation of payment streams within the Group. In order to maintain and optimise the financial capacity of the Group, we aim to achieve a situation where the K+S Group has a capital structure in the long term, which is orientated to the usual criteria and indicators for an "investment grade" rating. Within the framework of the requirements pro-vided by the aimed-for level of creditworthiness, we intend to optimise the cost of capital for borrowed capital and for equity. The management of the capital structure is undertaken on the basis of the following key figures.
Key figures for the management of the capital structure
|Net indebtedness / EBITDA||1.0 to 1.5||2.3||1.8||1.1||0.8||0.5|
|Net indebtedness / Equity (%)||max 100||55.9||40.9||30.5||25.4||19.8|
|Equity ratio (%)||40 to 50||51.9||50.6||45.3||51.4||50.9|
In view of the upcoming investments in the expansion of our potash capacities in Canada (Legacy Project) as well as the Werra package of measures, the solid capital structure provides a good starting point for the further development of the K+S Group.
Group currency and interest rate management is performed centrally for all Group companies. Derivative financial instruments are only entered into with top-rated banks and are spread across several banks so as to reduce the risk of default.