GCA Financial Targets for Government Companies
GCA Financial Targets for Government Companies
חברת החשמל
Israel Electric
Ratios
Targets
As of 12/31/2022
FFO (1) to adjusted financial debt ratio
Short term 11% to 18%
Long term 15% to 23%
7.2%
FFO (1) plus interest to interest ratio
Greater than 3
3.51
Return on capital employed (ROCE)
ratio
3.3% in 2023 (2)
3.1%
1.
Source: IEC's Financial Statements for FY2022 and a letter regarding the financial targets for Government Companies, circulated by the GCA on November 17, 2021 and approved by the IEC's Board of Directors.
FFO is based on calculation of the EBITDA before normalization while neutralizing the change in liabilities with respect to employee benefits (from cash flow report) and other expenses (revenues), net, less
interest and taxes paid (from cash flow report).
2.
Mid-target of ROCE ratio for 2023 have been updated due to the publication of a new tariff base for the generation segment and due to the annual update for 2023, which includes the deployment of
consumer debt to the company for the impact of coal prices over three years and the decrease in the return rate in the generation segment
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