Capital structure management

The capital structure management seeks to safeguard the ongoing business operations, to ensure flexible access to capital markets and to secure adequate funding at a competitive rate. Capital structure management at Valmet comprises both equity and total debt. As of December 31, 2017, the ‘Total equity’ was EUR 933 million (EUR 886 million) and the amount of ‘Total debt’ was EUR 219 million (EUR 310 million).

Valmet has not disclosed any long-term financial ratio target for its capital structure. However, the objective of Valmet is to maintain strong capital structure in order to secure customers’, investors’, creditors’ and market confidence. The capital structure is assessed regularly by the Board of Directors and managed operationally by the Treasury. Loan facility agreements include customary covenants and Valmet is in clear compliance with the covenants at the balance sheet date.

Valmet has no credit rating at December 31, 2017.

EUR million As at Dec 31, 2018 As at Dec 31, 2017 As at Dec 31, 2016
Total interest-bearing liabilities 201 219 310
Cash and cash equivalents 376 296 240
Available-for-sale interest bearing financial assets 44 6 1
Other interest-bearing receivables - 17 17
Interest-bearing net debt -219 -100 52
Total equity 949 933 886
Gearing ratio -23% -11% 6%
Updated; Mar 12, 2019