The business activities of the Deutsche Postbank Group differ fundamentally from those of the other companies in the Group. For this reason, we present an additional analysis of the balance sheet indicators under the “Postbank at equity” scenario. In this perspective, Postbank is treated as a financial investment carried at equity.
Net debt comprises financial liabilities less cash and cash equivalents, current financial instruments, long-term deposits and financial liabilities to minority shareholders of Williams Lea. Net debt was reduced from €4,193 million to €3,083 million which was due in particular to calling the exchangeable bond.
At the same time, the ratio of net debt to the total of equity and net debt combined also fell: Net gearing decreased from 28.1% to 21.4%.
Net interest cover of 8.3 indicates that EBIT exceeds net interest payment liabilities by a factor of 8.3. In the previous year, this indicator stood at 19.0.
The dynamic gearing ratio expresses the average number of years required to repay outstanding debt using the whole of the operating cash flow generated in the year under review. Accordingly, in 2006, net debt would have been paid by operating cash flow in 1.4 years (previous year: 2.4 years). The improvement is attributable to the increase in operating cash flow and the decrease in net debt.