english - About Heraeus
english - About Heraeus
english - About Heraeus
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Capital management information<br />
The aims of capital management are based on the corporate guidelines for financial management<br />
of the <strong>Heraeus</strong> Group.<br />
They include hedging and management of cash flow at all times, guaranteeing constant<br />
access to money, credit, and capital markets and a solid equity position.<br />
Measures to achieve these objectives are the optimization of the capital structure, changes<br />
to distributions and the reduction of debt over recent years.<br />
In addition to a high equity ratio, <strong>Heraeus</strong> uses the financing possibilities of the money<br />
and capital markets, such as a commercial paper program or bond issue, which are<br />
supported by contractually agreed long-term credit facilities with banks with first-class<br />
ratings from various sectors.<br />
Among other things, the Trading unit uses precious metal leases, which are usual in the<br />
industry, in order to finance the precious metals necessary in the production process. The<br />
<strong>Heraeus</strong> Group generally enters into precious metal leases with a term of up to 12 months.<br />
Financial market risk is controlled using the following established parameters:<br />
interest coverage factor,<br />
operating debt coverage, and<br />
equity ratio.<br />
Because of the international nature of the transactions, statutory and regulatory requirements<br />
that vary from region to region must be observed. The status of and changes to<br />
these requirements are monitored locally and centrally, and changes are taken into account<br />
in the course of capital management.<br />
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