2017 Integrated Report – Departure into a new era

Key debt ratios improved

Slight rise in redemption coverage

Redemption coverage
(€ million)

2017

2016

Change

absolute

%

EBITDA adjusted

4,930

4,797

+ 133

+ 2.8

Net operating interest

– 682

– 721

+ 39

– 5.4

Depreciation share of lease rates

1,079

1,005

+ 74

+ 7.4

Original tax expenditure

– 180

– 157

– 23

+ 14.6

Operating cash flow after taxes

5,147

4,924

+ 223

+ 4.5

Net financial debt as of Dec 31

18,623

17,624

+ 999

+ 5.7

Present value of operating leases
as of Dec 31

4,934

5,002

– 68

– 1.4

Adjusted net financial debt

as of Dec 31

23,557

22,626

+ 931

+ 4.1

Pension obligations
as of Dec 311)

3,940

4,522

–582

–12.9

Adjusted net debt

as of Dec 311)

27,497

27,148

+349

+1.3

Redemption coverage (%)

18.7

18.1

1) Previous yearʼs figure adjusted.

The redemption coverage as of December 31, 2017 was above the previous yearʼs value. The increase in the adjusted operating cash flow after taxes was more significant than the rise in adjusted net debt. Declining pension obligations partly made up for higher net financial debt.

Gearing improved

Gearing
as of Dec 31 (€ million)

2017

2016

Change

absolute

%

Financial debt

22,076

22,481

– 405

– 1.8

Cash and cash equivalents
and receivables from financing

– 3,528

– 4,584

+ 1,056

– 23.0

Effects from currency hedges

75

– 273

+ 348

Net financial debt

18,623

17,624

+ 999

+ 5.7

Equity 1)

14,238

12,657

+ 1,581

+ 12.5

Gearing (%) 1)

131

139

1)Previous yearʼs figure adjusted.

Gearing has improved slightly, but it remains above the target value of 100%. The main factor underlying this development was equity, which rose more strongly than net financial debt

Figure adjusted (2016 year: 139).

Slight deterioration in net financial debt/EBITDA

Net financial debt/EBITDA
(€ million)

2017

2016

Change

absolute

%

Net financial debt as of Dec 31

18,623

17,624

+ 999

+ 5.7

EBITDA adjusted

4,930

4,797

+ 133

+ 2.8

Net financial debt/EBITDA
(multiple)

3.8

3.7

There was a slight deterioration in the year under review in the key indicator net financial debt/EBITDA. The improvement in adjusted EBITDA could not entirely compensate for the rise in net financial debt.