Capital management

Galenica manages and monitors its capital at Group level. The objective is to ensure business continuity, enhance long-term enterprise value, provide appropriate returns to investors, and secure funding for future investments benefiting patients and customers.

Galenica defines the capital that it manages as invested interest-bearing liabilities and equity. Galenica uses a system of financial controls based on various key performance indicators. Capital is monitored, for example, based on the gearing, 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 adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA). Debt coverage ratio provides 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, IFRS 16 and IFRS 3 adjustments and net debt is adjusted for lease liabilities.