Redemption coverage

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
  EBITDA adjusted 5,601 5,139 5,110 4,778 4,797 4,930 4,739
+ Net operating
   interest
-865 -842 -824 -759 -721 -682 -618
+ 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
Redemption coverage 22.2 20.8 20.3 19.0 18.1 18.7 17,6