The primary 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 capability of the Group as well as
- reducing financial risks also by using of financial instruments.
Centralised cash management allows us to control liquidity and optimise the payment flows within the K+S Group. In order to maintain our eligibility for financing and to achieve a low cost of capital for borrowed capital and equity, we aim to achieve a capital structure in the long term which, notwithstanding the current 'non-investment grade' rating, is orientated towards the standard criteria and indicators for an 'investment grade' rating. The capital structure is managed on the basis if the following key figures.
Key figures for the management of the capital structure
|Net debt / EBITDA||1.0 to 1.5||6.9||2.3||1.8||1.2||0.8|
|Net debt / Equity (%)||max 100||78.7||55.9||40.9||30.5||24.4|
|Equity ratio (%)||40 to 50||47.2||51.9||50.6||45.3||51.4|
Group currency and interest rate management is performed centrally for all key Group companies. Derivative financial instruments are only entered into with top-rated banks and are spread across several banks and regularly monitored to reduce the risk of default.