Financing Strategy

We manage our debt based on recognised parameters. One of the key figures is the ratio of net debt to EBITDA, which we refer to as the “leverage factor.” This key performance indicator is of more informational value than the debt total as it reflects the company’s earning power and, in turn, the company’s ability to service the debt.

In 2011 the leverage factor will exceed our target on an upper limit of 3.0x. However, we have initiated measures to bring the factor back below our threshold in the medium-term. This is how we intend to safeguard our current credit rating.

As of 30 September 2011, our net debt amounted to €30.9 billion. It increased by €1.9 billion since end of 2010. This was mainly due to our capital expenditure on property, plant and equipment (€4.4 billion) and our dividend payments (€2.2 billion). In contrast, cash flows from operating activities dampened the rise in liabilities.

Net Debt
^{(Last updated 30 September 2011)}