Key debt ratios worsened
Redemption coverage lower
Redemption coverage (€ million) | 2018 | 2017 | Change | ||
absolute | % | ||||
EBITDA adjusted | 4,739 | 4,930 | – 191 | – 3.9 | |
Net operating interest | – 618 | – 682 | + 64 | – 9.4 | |
Depreciable portion of lease rates | 1,114 | 1,079 | + 35 | + 3.2 | |
Actual taxes on income | – 192 | – 180 | – 12 | + 6.7 | |
Operating cash flow after taxes | 5,043 | 5,147 | – 104 | – 2.0 | |
Net financial debt as of Dec 31 | 19,549 | 18,623 | + 926 | + 5.0 | |
Present value of operating leases as of Dec 31 | 4,245 | 4,934 | – 689 | – 14.0 | |
Adjusted net financial debt as of Dec 31 | 23,794 | 23,557 | + 237 | + 1.0 | |
Pension obligations as of Dec 31 | 4,823 | 3,940 | +883 | +22.4 | |
Adjusted net debt as of Dec 31 | 28,617 | 27,497 | +1,120 | +4.1 | |
Redemption coverage (%) | 17.6 | 18.7 | – | – | |
Redemption coverage as of December 31, 2018 has decreased. Adjusted net debt has increased as a result of an increase in net financial debts and the pension obligations. At the same time, the adjusted operating cash flow after taxes decreased due to the profit development.
Deterioration in net debt/EBITDA
Net debt/EBITDA (€ million) | 2018 | 2017 | Change | ||
absolute | % | ||||
Net financial debt as of Dec 31 | 19,549 | 18,623 | + 926 | + 5.0 | |
Present value of operating leases as of Dec 31 | 4,245 | 4,934 | – 689 | – 14.0 | |
Adjusted net financial debt as of Dec 31 | 23,794 | 23,557 | + 237 | + 1.0 | |
Pension obligations as of Dec 31 | 4,823 | 3,940 | +883 | +22.4 | |
Adjusted net debt as of Dec 31 | 28,617 | 27,497 | +1,120 | +4.1 | |
EBITDA | 4,739 | 4,930 | – 191 | – 3.9 | |
Lease rate | 1,257 | 1,236 | +21 | +1.7 | |
EBITDA (IFRS 16) 1) | 5,996 | 6,166 | –170 | –2.8 | |
Net debt / EBITDA (multiple) | 4.8 | 4.5 | – | – | |
1) Adjusted for proportional leasing expense of the present value of the operating leases.
From the year under review, the key indicator net debt/ EBITDA began taking into account the effects of IFRS 16, which is obligatory from the 2019 financial year. In addition, the key indicator impacts more strongly on the grading of the rating agencies, as it now includes pension obligations. The key indicator net debt/EBITDA worsened in the year under review as a result of the increase of net financial debts and the pension obligations coupled with a simultaneous decrease in adjusted EBITDA.