Financial Strategy

In terms of capital requirements and cover, the prime goal of WACKER’s financial strategy is to balance conflicting demands, such as profitability, liquidity, security and independence. WACKER strives to finance corporate growth without outside help to the greatest possible extent. Sustaining a positive net cash flow is as important as generating a positive contribution to earnings. We cover our capital requirements from net cash flow, and from short-term and long-term financing. See further details on Financial Position 

We ensure the Group’s permanent solvency via rolling cash-flow management, and adequate credit lines guaranteed in writing. Financing requirements are calculated for the entire Group, with funding usually being granted at Group level. Project-specific or regional funding is available, too, in special cases.

In 2009, WACKER concluded a series of important financing measures and secured medium and long-term funding at good conditions. In total, we renegotiated financing of some €900 million. As of December 31, 2009, we had access to credit lines of some €1.3 billion. The measures concluded contain standard market credit terms and net debt/EBITDA as the only financial covenants. See further details on Financial Liabilities

Financing of approx. €900 Million Renegotiated

  download table

Financing Measures in 2009

 

 

 

 

Loans

 

Volume in € million

 

Term until

 

 

 

 

 

Syndicated loan

 

150

 

2012

Bilateral loans

 

115

 

2012+

Promissory note bonds

 

180

 

2011+2013

Loan from the European Investment Bank

 

400

 

2016

Syndicated loans in China

 

89

 

2013-2016

In addition to the above-mentioned financing instruments, WACKER expects to be able to tap the bond markets, if necessary. Our aim is to maintain our corporate financial structures such that the company’s credit rating remains – at a minimum – in the investment-grade range.

WACKER collaborates with a number of banks (core-bank principle). These banks must have an investment-grade credit rating and a long-term business model. To minimize counterparty and concentration risks, a bank’s stake in the credit lines promised to WACKER must not exceed 20%. These rules do not apply to our credit line from the European Investment Bank.