Financing strategy

Our goal is profitable growth. That is why we have a clear financing strategy and financing principles to safeguard our strategic objectives, which form the framework for the financial viability and profitability of our investments and management decisions.
The diversification of capital sources and financing instruments is the top priority in the strategic orientation of our corporate financing.

A key part of our financing strategy as a family business is to use the free cash flow generated for investments, which enables us to ensure growth based on our own performance.

Stable equity financing is crucial for the sustainable growth of the EGGER Group. We have therefore defined a long-term shareholder's equity ratio of at least 30%.

To ensure medium- to long-term access to and preservation of external financing sources, we are striving for a sustainable investment grade rating with our main financial partners as our long-term target credit rating. Internally, we monitor this using the key financial figure debt repayment period (net debt in relation to EBITDA), with our long-term target value being below 3.00.

The pillars of our financing strategy

We use the following three-pillar model as the main sources of balanced debt financing:

• Bank financing: We primarily conclude syndicated bank loans and committed credit lines (to secure strategic liquidity) with a select group of core banks.

• Capital market financing: We have been successfully financing ourselves via the Austrian bond market and the borrower's note loan market for many years. In addition, we regularly review the possible future use of other capital market instruments.

• Factoring programme: We sell receivables on the basis of a true sale (i.e. the factoring company becomes the owner of the sold receivable).

Maturity structure

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