Debt Investor Presentation April 2021
Financing and capital structure
Maintaining a BBB rating and adequate liquidity are cornerstones of our policy
Key area
CREDIT RATING
LIQUIDITY
MATURITY
SHAREHOLDER
REMUNERATION
Policy
Maintain a capital and financing structure over the cycle that is
compatible with a BBB credit rating
Liquidity reserve equal to minimum 7.5% of net sales in terms of
accessible cash and undrawn committed credit facilities
Average maturity on committed credit facilities above 3 years
Danfoss A/S dividend distribution up to 30% of previous year's net
profit in addition to minority shareholder distribution
Status
BBB with stable outlook by S&P (29 March 2021)
New EUR 2.5bn EMTN programme BBB rated (26th March 2021)
Liquidity reserve of EUR 2.1bn incl EUR +500m of cash and cash
equivalents at Danfoss A/S (+25% of 2020 Pro Forma net sales)
Average maturity on committed credit facilities above 2 years.
Above 3 years after the contemplated bond financing
No dividend paid in 2020 and 2021 from Danfoss A/S and EUR 70m
was injected by The Bitten & Mads Clausen's Foundation in 2020.
Eaton Hydraulics financing and anticipated post take-out maturity profile
Acquisition payment for Eaton Hydraulics
•
Cash purchase price of USD 3.3bn (EUR ~2.8bn)
Indicative financing composition
•
Proposed bond take-out represents indicatively EUR 1.9bn
•
Cash at hand of EUR 500m
•
Bank term loan of EUR 400m
EURM
800
Debt maturity profile (excl lease liabilities)
600
400
200
....
| |
2021 2022 2023 2024 2025 2026
■EIB/NIB/Mortgage
EUR Bond 2022
2027 2028 2029 2030 2031
Later
■Proposed new notes
Bank term loan
Outstanding EUR Bond maturing 2022
0
Prepaid via 2021 cash generation, White Drive divestment proceeds or RCF facilities
25 Danfoss Debt Investor Presentation April 2021
Confidential
ENGINEERING TOMORROW
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