Focus on security, flexibility and independence
As a foundation owned corporate, we pursue a conservative and diversified financing strategy aimed at ensuring sufficient liquidity and financial flexibility at all times. Our aim is to secure financial independence of our group, limit financing risks, and ensure we are able to exploit business opportunities at all times at reasonable costs.
We aim to have a Net Debt/ EBITDA ratio below 2.0x, whereas we set ourselves a minimum equity ratio target which is above 33%.
MAHLE GmbH centrally performs the Group’s funding activities and grants intercompany loans to Group companies. Subsidiaries only raise funds locally where intercompany financing is not efficient or possible, e.g. for tax or regulatory reasons.
We finance our business activities to the extent possible through cash generated from operating activities. Besides that, we are using a diversified portfolio of funding sources.
A revolving credit facility concluded with our core banks constitutes the backbone of our financing. Furthermore, we ensure our short to medium term liquidity through local bank loans and money market instruments and we make use of asset-based financing instruments (including an ABS program and (reverse) factoring programs). The medium to long term financing is primarily based on issuances of notes under the debt issuance program, private placements of bonds and promissory note loans (Schuldscheindarlehen). Occasionally we are using project-based funding with (mostly) supranational institutions.
Following our conservative financing strategy, we prepare our financial statements in accordance with the German Commercial Code (Handelsgesetzbuch, HGB).
We are also having access to the equity markets. Our Brazilian subsidiary MAHLE Metal Leve S.A. is listed on the Novo Mercado in Brazil. Find out more at: ri.mahle.com.br.
