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 interest-bearing debt. As at December 31, 2020, total equity was EUR 1,142 million (EUR 1,046 million) and the amount of interest-bearing debt was EUR 436 million (EUR 207 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 Treasury. Loan facility agreements include customary covenants and Valmet is in clear compliance with the covenants as at December 31, 2020. 

Valmet has no credit rating at December 31, 2020.

 

EUR million As at Dec 31, 2020 As at Dec 31, 2019

Interest-bearing debt

436

207

Cash and cash equivalents

274 316

Interest bearing financial assets

74 42

Interest-bearing net debt

88 -151

Total equity

1,142 1,046

Gearing

13% -9%

 

The information presented in the above table excludes the impact of lease liabilities.

Updated; Aug 12, 2021