Page 176 - KELAG Annual Report 2019
P. 176

The objective of capital management is to maintain a strong capital base, to successfully continue
                                      the organic growth and innovation strategy based on renewable energies and thus to promote
                                      the Group’s future development.

                                      For management, the Group’s capital is its equity reported pursuant to IFRSs. Equity amounted to
                                      EUR 917.7m  as  of  the  reporting  date  (prior  year:  EUR 893.7m).  Financial  liabilities  came  to
                                      EUR 784.2m (prior year: EUR 701.8m); cash and cash equivalents came to EUR 108.8m (prior year:
                                      EUR 134.7m). The Group monitors its capital using net gearing, which is the ratio of net debt to
                                      total equity.

                                      With  a  net  gearing  ratio  of  70.8%  (prior  year:  60.6%)  based  on  financial  liabilities  as  of  the
                                      reporting date, the KELAG Group has a stable capital structure.










                                       Non-current financial liabilities             437.0              422.1
                                       Current financial liabilities                  22.1                6.0
                                       Pension provisions                            175.2              137.6
                                       Provisions for severance payments              82.2               76.5
                                       Provision for long-service awards              17.4               15.5
                                       Provisions for “Altersteilzeit” (special phased   50.2            44.2
                                       retirement scheme)
                                       SUBTOTAL                                      784.2              701.8
                                       less cash and cash equivalents               -108.8             -134.7
                                       less securities                               -25.2              -25.3
                                       NET LIABILITIES                               650.2              541.8
                                       Equity                                        917.7              893.7
                                       NET GEARING                                  70.8%              60.6%



                                      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.
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