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 of December 31, 2019, Total equity was EUR 1,046 million (EUR 949 million) and the amount of interest-bearing debt was EUR 207 million (EUR 201 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, 2019. 

Valmet has no credit rating at December 31, 2019.

 

EUR million As at Dec 31, 2019 As at Dec 31, 2018

Interest-bearing debt

207

201

Cash and cash equivalents

316 376

Interest bearing financial assets

42 44

Interest-bearing net debt

-151 -219

Total equity

1,046 949

Gearing

-9% -23%

 

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

Updated; Aug 11, 2020