Securing liquidity, minimizing risks
The financial management of the K+S Group follows three overriding objectives:
- secure liquidity and manage it efficiently throughout the company,
- to maintain and optimize the ability to finance,
- to reduce financial risks also by using financial instruments.
Through centralized cash management, we control liquidity and optimize cash flows within the company. In order to maintain our financing capability and to achieve favorable costs for debt and equity, we aim to achieve a long-term capital structure based on the criteria and ratios for an investment grade rating, irrespective of the current non-investment grade rating. We manage our capital structure on the basis of the following key figures:
Key figures for managing the capital structure
|Value 2020*||Value 2019||Value 2018||Value 2017||Value 2016|
|Net financial debt / EBITDA||7.2||4.9||5.3||5.2||4.6|
|Net debt / equity (in %)||209.5||101.6||107.2||99.5||78.7|
|Net debt ratio (in %)||26.5||42.4||41.6||42.7||47.2|
*The figures relate to the continuing and discontinued operations of the K+S Group.
Currency and interest rate management is carried out centrally for all major Group companies. Derivative financial instruments are only concluded with banks of good credit standing, spread across several banks to reduce the default risk and monitored regularly.
Rating agencies assess the creditworthiness of companies - their so-called credit rating. A rating describes the assessment of a company's ability to meet its future interest and repayment obligations on time. The higher the rating, the lower the estimated potential risk. A company with a good rating can therefore generally borrow capital on the capital market at better terms than a company with a weak rating.
Current rating classification
|Rating agency||Rating||Outlook||Date of the last update|
|Standard & Poor's||B+||stable||September 10, 2021|
K+S Aktiengesellschaft issued corporate bonds on the capital market on 11 July 2018, 31 March 2017, 2 December 2013 and 12 June 2012. These enable longer-term financing at attractive conditions and offer lenders an interesting investment opportunity.
|December 2013 bond||June 2012 bond||March 2017 bond||July 2018 bond|
|Listing:||Stock exchange Luxembourg||Stock exchange Luxembourg||Stock exchange Luxembourg||Stock exchange Luxembourg|
|Issue volume:||500 million EUR||500 million EUR||625 million EUR||600 million EUR|
|Outstanding volume:||500 million EUR||234.900 million EUR||445.398 million EUR||484.700 million EUR|
|Denomination:||1,000 EUR||100,000 EUR||1,000 EUR||100,000 EUR|
|Maturity:||December 6, 2021||June 20, 2022||April 6, 2023||July 18, 2024|