Page 123 - KELAG Annual Report 2017
P. 123

well as quick, reliable access to cash based on contractually
                                                                  agreed facilities. KELAG has contractually agreed financing
                                                                  lines  amounting  to  EUR 250m  until  2020  and  2021.
                                                                  Furthermore, KELAG also managed to secure a loan with a
                                                                  volume of EUR 90m from the European Investment Bank
                                                                  (EIB)  in  the  financial  year  2015,  which  was  utilised
                                                                  successively in the years 2015 and 2016, following the very
                                                                  successful  bonds  issued  in  2012  and  2014  for  EUR 150m
                                                                  each.

                    Again in the financial year 2017, the generally risk-averse
                    focus of the financial strategy remained on the two main
                    pillars:  securing  liquidity  and  strengthening  the  Group’s
                    credit  standing.  In  this  context,  the  current  financial
                    strategy is a system of rules that is embraced by employees
                    and is embedded in the overarching corporate strategy. The
                    aim  is  to  maintain  the  Group’s  good  credit  rating  in  a
                                                                  The  Group  acts  externally  as  a  financial  entity,  thereby
                    difficult  business  environment,  even  as  the  economy
                                                                  strengthening and optimising its negotiating position vis-
                    becomes more dynamic and thus volatile. Safeguarding an
                                                                  à-vis  investors,  banks  and  other  business  partners.
                    adequate liquidity reserve and maintaining a good credit
                                                                  Moreover,  all  short-,  medium-  and  long-term  financing
                    rating are still the primary objectives that guarantee KELAG
                                                                  measures  are  carried  out  at  KELAG,  which  also  acts  as  a
                    the highest level of flexibility possible and free access to the
                                                                  pooling centre.
                    financial  markets.  In  addition,  one  of  the  key  tasks  is  to
                    centrally manage the balanced financing of group entities
                    in line with their requirements. When selecting financing
                    structures, the Group aims to diversify its sources of finance
                    and  thereby  safeguard  existing  bank  credit  lines.  Net
                    liabilities  were  reduced  by  around  EUR 8.8m  to  around
                    EUR 492.0m in the financial year 2017.
                                                                  The  cost  of  borrowing  and  the  unrestricted  access  to
                                                                  financial instruments hinge on a company’s credit rating.
                                                                  Because  risk  premiums  are  determined  based  on  rating
                                                                  categories, maintaining KELAG’s excellent credit rating in
                                                                  the  long  term  is  of  crucial  importance.  In  June  2017,
                                                                  Standard &  Poor’s  confirmed  the  good  “A”  rating  with  a
                    The company still has stable cash inflows from operating
                                                                  stable outlook.
                    activities.  The  financial  strategy  for  2017  centred  on
                    ensuring that the Group had stable internal financing as
   118   119   120   121   122   123   124   125   126   127   128