The major goal of our financing policy is to minimize the Group’s financial expenses while ensuring sufficient liquidity reserves at all times to meet the Group’s payment commitments.
Historically, EBITDA/Net debt has remained within the range of 1.0x to 3.0x, and below the 3.5x stipulated in the Group’s covenants.
Millions of Euro
30 September 2009 |
31 December 2009 |
∆ |
|
|---|---|---|---|
| Net US$ debt(1) | -2,048 | -1,936 |
112 |
| Net € debt(1) | -1,017 | -1,043 | 26 |
| Translation adj. | -25 | ||
|
€ 1 = US$ |
1.4629 | 1.4332 | |
| Net debt(1) (€) | -2,414 | -2,339 | 75 |
| Net debt/EBITDA(1) | 2.7x | 2.7x | |
| Net debt/EBITDA(1) (2) excluding exchange rate effect |
2.8x | 2.6x |
_________________________
(1) Free cash flow, EBITDA, Net debt and Net debt/EBITDA are not US GAAP measures. For additional disclosure regarding non-US GAAP measures and a reconciliation to US GAAP measures please refer to the latest presentation.
(2) The ratio is calculated using the nine-month average exchange rate as of September 30, 2009 and the twelve-month average exchange rate as of December 31, 2009 respectively
For additional disclosure regarding non-US GAAP measures and a reconciliation to US GAAP measures, see referring presentations: 2009, 2008, 2007,2006.

