Financing strategy

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, and
  • reducing financial risks, including through the use 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 of the following key figures:

Key figures for the management of the capital structure

  Target corridor 2017 2016 2015 2014 2013
Net debt / EBITDA 1.0 to 1.5 7.2 6.9 2.3 1.8 1.2
Net debt / Equity (%) max 100 99.5 78.7 55.9 40.9 30.5
Equity ratio (%) 40 to 50 42.7 47.2 51.9 50.6 45.3

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.
 

 

 

 

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