Debt Structure
ListenThe 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.
Debt overview
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.
