We use redemption coverage as a value management figure to steer our debt.
Redemption coverage represents the relationship between operational cash flow and adjusted net financial debt. In 2016, the definition of redemption coverage was adjusted retrospectively. To determine the redemption coverage the cash flow is now more leasing adjusted as well as adjusted for tax payments. The debt now include not only net financial debt and lease liabilities, but also pension liabilities. The aim of the adjustment is a higher agreement with the methodology of the rating agencies as well as a better controllability of the DB Group's debt. Adjusted to the new definition, the new DB2020+target value for redemption coverage is ≥ 25%.
For details of redemption coverage, please refer to the Integrated Report 2018 of the DB Group. The Integrated Report 2018 will be published in English in May 2019.
Derivation of redemption coverage
|Redemption coverage € million or %||2012||2013||2014||2015||2016||2017||2018|
|+ 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|
|= Operating cash flow after taxes||5,430||5,038||5,058||4,833||4,924||5,147||5,043|
|Net financial debt||16,366||16,362||16,212||17,491||17,624||18,623||19,549|
|+ 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|
|÷ Adjusted net debt||24,515||24,172||24,905||25,387||27,148||27,497||28,617|