Sustainability-Linked Bond Framework
Financing and capital structure
Maintaining a BBB rating and adequate liquidity are cornerstones of our policy
Anticipated maturity profile
Debt maturity profile (excl lease liabilities)
EURM
800
600
400
200
EIB/NIB/Mortgage
EURO Bonds
Proposed new notes
Bank Term Loans
2023
2024
2025
2026
2027
2028
2029
2030
2031
Later
Key area
Policy
Credit rating
Maintain a capital and financing structure over the cycle that is compatible with
minimum a BBB credit rating
Financial
gearing target
Liquidity
Maturity
Shareholder
remuneration
The target financial gearing is 2 x EBITDA before special items. The ratio may
exceed this level following significant acquisitions.
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 (12 May 2023)
EUR 2.5bn EMTN programme - BBB rated
Net interest-bearing debt / EBITDA before OOI/E at 2.0 (31 December 2022)
Liquidity reserve of EUR 1.24bn incl. EUR 240m of cash and cash equivalents at Danfoss A/S (31
December 2022)
Above 3 years (31 December 2022)
Dividend paid according to policy in 2022 and 2023
25 Bond Investor Presentation May 2023
ENGINEERING TOMORROW
DanfossView entire presentation