The objective of capital management is to secure the financial flexibility in order to maintain long-term business operations and to realize strategic options. Maintaining a stable investment grade rating, ensuring liquidity, limiting financial risks as well as optimizing the costs of capital are the objectives of our financial policy and set important framework conditions for capital management. Traditionally, the capital market has represented a major source of financing for Merck, for instance via bond issues. In addition, Merck has both a commercial paper program for short-term financing on the capital market as well as a syndicated credit facility of € 2 billion with a term of until October 2014.
The responsible committees decide on the capital structure of the balance sheet, the appropriation of net retained profit and the dividend level.
In this context, net financial debt is one of the leading capital management indicators. It was as follows:
| XLS |
|
|
|
|
|
|
€ million |
Dec. 31, 2012 |
Dec. 31, 2011 |
Change |
|
Financial liabilities |
4,453.5 |
5,539.3 |
–1,085.8 |
|
less |
|
|
|
|
Cash and cash equivalents |
729.7 |
937.8 |
–208.1 |
|
Current financial assets |
1,797.9 |
1,117.1 |
680.8 |
|
Net financial debt |
1,925.9 |
3,484.4 |
–1,558.5 |