We use debt coverage as a value management figure to steer our debt.
Debt coverage represents the relationship between operational cash flow and adjusted net financial debt. To determine the debt coverage the cash flow is more leasing adjusted as well as adjusted for tax payments. The debt include not only net financial debt and lease liabilities, but also pension liabilities.
The target value for debt coverage is ≥ 20%.
Derivation of debt coverage
|Debt coverage (€ million or %)||2012||2013||2014||2015||2016||2017||2018||2019||2020||2021|
|+ Net operating|
|+ Depreciation ratio lease rate||850||886||906||951||1,005||1,079||1,114||-||-||-|
|+ Original tex expenses||-156||-145||-134||-137||-157||-180||-192||-137||-180||-302|
|= Operating cash flow after taxes||5,430||5,038||5,058||4,833||4,924||5,147||5,043||4,679||281||1.521|
|Net financial debt as of Dec. 31||16,366||16,362||16,212||17,491||17,624||18,623||19,549||24,157||29,345||29.107|
|+ Present value of operating leases||5,075||4,646||4,336||4,208||5,002||4,934||4,245||-||-||-|
|= Adjusted net financial debt||21,441||21,008||20,548||21,699||22,626||23,557||23,794|
|+ Pension obligation||3,074||3,164||4,357||3,688||4,522||3.940||4,823||5,354||6,517||5,031|
+ Hybrid capital1) as of Dec. 31
|÷ Net debt as of Dec. 31||24,515||24,172||24,905||25,387||27,148||27,497||28,617||30,528||36,863||35,139|
1) As assessed by the rating agencies, half of the hybrid capital shown on the balance sheet is taken into account in the calculation of the adjusted net debt.