Profitable growth is the target of the EGGER Group. To this end, the company has a clear financial strategy and financing principles to ensure its strategic goals, which represent the framework of the financial viability and profitability of investments and management decisions.
The main focus for the strategic orientation of the EGGER company financing is the diversification of capital sources and financing instruments.
A key part of the financial strategy of EGGER as a family business is the use of generated free cash flow for investments, which ensures growth on its own strength.
EGGER predominantly uses the following three-pillar-model as sources of balanced external financing:
This mainly includes signing syndicated bank loans and committed credit lines (for strategic liquidity protection) with a selected number of core banks.
Capital market financing
The EGGER Group has been successfully obtaining financing via the Austrian bond market and the Schuldschein notes market for years. In addition to this, EGGER regularly considers the possible use of other capital market instruments.
Claims are sold on the basis of True Sales (i.e., the factoring company becomes the owner of the sold claim).
|Financial liabilities and bonds||07/30/20||04/30/19||04/30/18||04/30/17||04/30/16|
|Residual maturity above 5 years||Million EUR||528.2||525.3||357.0||206.3||36.3|
|Residual maturity 1 - 5 years||Million EUR||744.0||636.6||540.0||489.9||603.2|
|Residual maturity under 1 year||Million EUR||235.7||235.7||93.4||242.1||208.3|
Stable equity financing is essential for the sustainable growth of the EGGER Group. EGGER defines a long-term equity ratio of at least 30%.
In order to ensure medium to long-term access to and maintenance of external financing sources, the EGGER Group aims, as a long-term target rating, for a durable investment grade rating with its key investment partners.
Internally, this is monitored via the finance ratio debt repayment period (net debt in relation to EBITDA), where the long-term target value is under 3.00.