Financial Targets and Principles

  • Ensuring liquidity  
The main financial objective is to ensure the consistent availability of adequate liquidity for the Group. For this purpose, a liquidity reserve comprised of short-term marketable financial assets (cash, securities,...) and undrawn committed credit lines is maintained. The liquidity reserve shall be large enough to cover the planned financing requirtements for the entire Group for the coming twelve months. 
  • Ensuring investment-grade status
A solid capital structure provides the basis for the continuing growth of the Group. Even if voestalpine AG is currently not rated and is not pursuing an external rating at this time, the financial management shall always be aligned with investment-grade standards. The financial ratios Net Debt/Equity (“gearing”) and Net Debt/EBITDA are key indicators for the management of the capital structure.
  • Financial dependence

Financial management shall always preserve financial independence and freedom of action of the Group. This implies a broad diversification of counterparties, financing instruments and tenors as well as no constraints in financing contracts („financial covenants“).

  • Conservative financial risk policy                                            

The voestalpine Group does not expect any contribution by the financial result to the total result which might be achieved by taking any financial risk position. The main objective is to hedge financial risk exposures in order to generate well plannable and reliable cash flows.

  • Financial unity and central financing

The voestalpine Group sees itself as financial unit and makes ist excellent creditworthiness available to any Group entity against external lenders. This approach leads to the principle of central financing by voestalpine AG and redistribution of the liquidity within the Group. Decentralized financing is only implemented if it is required by tax or legal policies or if an economic benefit may be generated.

  • Banking policy

voestalpine is committed to the relationship bank principle, which aims for establishing long term relationships with bank partners. Close attention is paid to ensure that the right balance is achieved between any other business that is awarded to banks and their financing commitments. Nevertheless, whenever business is awarded, there must be competition between the providers in order to ensure a competitive price.

  • Rating
voestalpine AG has currently not been rated and is not pursuing an external rating at this time. However, it is the objective of the Group’s financial management to always have investment-grade status.