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Capital management

Galenica's capital is managed and monitored at Group level. The objective of capital management at Galenica is to ensure the continuity of operations, increase enterprise value on a sustainable basis, provide an adequate return to investors, provide the financial resources to enable investments in areas that deliver future benefits for patients and customers and further returns to investors.

Galenica defines the capital that it manages as invested interest-bearing liabilities and equity. Galenica uses a system of financial control based on various key performance indicators. Capital is monitored based on the gearing, for example, which expresses net debt as a percentage of shareholders' equity including non-­controlling interests and is communicated regularly to management as part of internal reporting. The debt coverage expresses net debt as a multiple of earnings before interest, taxes, depreciation and amortisation (EBITDA). Debt coverage ratio provide information about the creditworthiness of the Group. Galenica has no covenants requiring a minimum level of debt coverage.

Total assets and shareholders' equity are adjusted for the cumulative effects of the IAS 19 and IFRS 16 adjustments and net debt is adjusted for lease liabilities.

Total assets

in thousand CHF

30.6.2021

30.6.2020

Total assets

2,513,598

2,293,558

Cumulative effects of IAS 19 adjustments

–46,662

–10,721

Cumulative effects of IFRS 16 adjustments

–220,242

–216,043

Total assets adjusted

2,246,694

2,066,794

Net debt

in thousand CHF

30.6.2021

30.6.2020

Current financial liabilities 1)

139,373

132,193

Current lease liabilities

47,872

47,700

Non-current financial liabilities 1)

380,611

380,744

Non-current lease liabilities

180,032

175,338

Cash and cash equivalents

–124,418

–104,868

Interest-bearing receivables

–331

–1,847

Net debt

623,139

629,260

Lease liabilities (current and non-current)

–227,903

–223,038

Net debt adjusted

395,236

406,222

1) Excluding non-interest-bearing financial liabilities

Shareholders' equity

in thousand CHF

30.6.2021

30.6.2020

Shareholders' equity

1,113,856

947,818

Cumulative effects of IAS 19 adjustments

–13,434

81,663

Cumulative effects of IFRS 16 adjustments

4,994

4,826

Shareholders' equity adjusted

1,105,416

1,034,307

Equity ratio

 

30.6.2021

30.6.2020

Equity ratio 1)

44.3%

41.3%

Equity ratio adjusted 2)

49.2%

50.0%

1) Calculated as shareholders' equity divided by total assets

2) Calculated as shareholders' equity adjusted divided by total assets adjusted

Gearing

 

30.6.2021

30.6.2020

Gearing 1)

55.9%

66.4%

Gearing adjusted 2)

35.8%

39.3%

1) Calculated as net debt divided by shareholders' equity

2) Calculated as net debt adjusted divided by shareholders' equity adjusted

Debt coverage

 

30.6.2021

30.6.2020

Debt coverage 1)

2.1 x

2.4 x

Debt coverage adjusted 2)

1.6 x

1.9 x

1) Calculated as net debt divided by two times EBITDA of the first half year

2) Calculated as net debt adjusted divided by two times EBITDA adjusted of the first half year

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