Page 95 - KELAG Annual Report 2017
P. 95

Non-current financial liabilities                     424.0      436.6
                                       Current financial liabilities                          4.7         5.7
                                       Pension provisions                                    127.1      124.8
                                       Provisions for severance payments                     73.9        77.9
                                       Provision for long-service awards                     13.8        15.1
                                       Provisions for “Altersteilzeit” (German phased retirement scheme)   34.6   34.2
                                       SUBTOTAL                                             678.1       694.2
                                       less cash and cash equivalents                       -160.8     -167.5
                                       less securities                                       -25.2      -25.8
                                       NET LIABILITIES                                      492.0       500.8
                                       Equity                                                855.5      817.2
                                       NET GEARING                                          57.5%      61.3%



                                      Further objectives of capital management include retaining a high credit rating, which is also
                                      firmly entrenched as a component of the corporate strategy, ensuring an adequate return on
                                      equity and a consistent dividend policy.

                                      No  changes  were  made  to  the  capital  management  objectives,  policies  or  processes  as  of
                                      31 December 2017.





                                      Entrepreneurial activity means that opportunity is not without risk. Consequently, the willingness
                                      to take and limit risks has to be defined. To this end, KELAG operates a risk management system
                                      that addresses risks from its own activities as well as risks from its market environment. The group-
                                      wide rules and minimum standards ensure a systematic and uniform risk management system. It
                                      is the KELAG Group’s strategic goal to raise risk awareness at all levels, to systematically consider
                                      risk aspects in all business decisions, to improve performance of internal control systems and
                                      reporting as well as to establish a value-oriented risk culture at all levels of the Group, beyond the
                                      scope of the requirements set by the legal minimum standards.

                                      The focus of group-wide risk management relates to the risk categories identified for the KELAG
                                      Group: market and competition risks, credit risks, operational risks, financial risks, systemic risks
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