37 Capital management
In the context of implementing the holistic management approach, it is the task of capital management to make an effective contribution to the attainment of the Heidelberg Group’s goals. In this context, Heidelberg’s financial goals are geared towards ensuring liquidity and creditworthiness and increasing the enterprise value of the Heidelberg Group on an ongoing, long-term basis, which benefits both our shareholders and our employees. In addition to the return on capital employed (ROCE), we use a management control figure based on capital costs to achieve long-term value growth. This figure is the ‘value contribution’ (see also the information in the Group management report). The value contribution enables the measurement of the performance of the Heidelberg Group.
The basis for determining the value contribution is the following capital structure:
|– Net deferred taxes||– 13,676||– 67,373|
|Adjusted shareholders’ equity||1,215,347||1,260,208|
|+ Tax provisions||269,894||294,976|
|+ Net tax receivables / liabilities||– 58,892||– 63,818|
|+ Non-operating financial liabilities||468,616||490,048|
|Adjusted total capital||2,027,905||2,097,383|
The capital management strategy has not changed as against the previous year.
In the year under review, the equity of the Heidelberg Group declined from € 1,201,671 thousand to € 1,192,835 thousand. Based on total assets, the equity ratio therefore dropped from 36.0 percent to 34.0 percent. In addition, net financial liabilities (= total financial liabilities, such as the convertible bond, borrower’s note loans, bank loans and pension provisions less securities and cash and cash equivalents) were reduced from € 562,465 thousand in the previous year to € 486,817 thousand. One of the stated aims of the Heidelberg program ‘Heidelberg Excellence’ is to lower the volume of working capital and thereby limit capital tie-up. In the medium term, working capital as a percentage of sales is to be reduced down to 30 percent.
Standard external capital requirements, particularly those for the syndicated credit line, were met by the Heidelberg Group. Heidelberg is not subject to any capital requirements arising from its Articles of Association.