AT&S World

Healthy Finances
36
Healthy Finances
A very healthy financial
position: sufficient
lines of credit available,
agreed either
in writing or orally
Financing policy
Subject to any local regulations, AT&S adopts a
centralised treasury approach to finances, with
external borrowing predominantly carried out
by AT&S AG. A detailed summary of the various
sources of finance, including the respective maturities,
is given in Note 16, “Financial liabilities”
in the Notes to Financial Statements (page 89).
Net debt
Capacity expansion in India and China and the
capital investment that this necessarily entailed,
combined with intensified research activities
meant that in the financial year 2010/11 net debt
increased by EUR 45.7m to EUR 193.7m. Last financial
year also saw equity climb EUR 21.0m to
EUR 229.8m, principally as a result of the improvement
in consolidated net earnings and despite
adverse currency effects of EUR 10.8m. The final
outcome was that the gearing ratio rose from 70.9%
to 84.3%.
Net debt 2010/11 and 2009/10
in EUR m 31 March 2011 31 March 2010
Current financial liabilities 116.4 70.5
+ Non-current financial liabilities 95.5 105.2
- Cash and cash equivalents (4.2) (13.4)
- Current financial assets (13.9) (14.2)
- Non-current financial assets (0.1) (0.1)
Net debt 193.7 148.0
Sources of finance
As at 31 March 2011 total financing amounted
to EUR 212.0m: 84% of borrowings with maturities
of more than one year were at fixed interest
rates, and 16% at variable rates (but hedged with
interest rate swaps). Of the total debt, 93% was
euro-denominated, and 7% denominated in other
currencies. Outstanding loans of EUR 53.9m were
subject to financial covenants, with all of which
AT&S was in compliance.
In the course of the financial year the term profile
of AT&S’s borrowings shortened slightly. With the
current yield curve, this had a beneficial effect on
average interest costs.