Catena updates its finance policy

Catena is adding the net debt/EBITDA ratio key performance indicator to its existing finance policy.

21 February 2023 at 15:30 CET

The new net debt/EBITDA ratio KPI describes the Group’s net debt in relation to the net operating income the Group generates minus cost for central administration. The aim is for this KPI to be maintained below nine times. In simple terms, the KPI shows how many years it takes to repay all loans if the accounts remain constant. Unlike the loan-to-value ratio KPI, which is more traditional in the property sector and measures the company’s indebtedness in relation to the property value, the net debt/EBITDA ratio focuses instead on earnings.

The KPI is being presented for the first time in the year-end report for 2022.

Catena’s financial KPIs in its finance policy will thus be as follows from now on:

• The equity ratio should be at least 40 percent.
• The interest coverage ratio should be at least two times.
• The average debt maturity should be at least 2.5 years.
• The net loan to value should stay below 50 percent.
• An Investment Grade credit rating shall be maintained.
• The net debt/EBITDA ratio should be less than nine times.

“In view of the increased global uncertainty, I see two reasons to add this KPI,” says Catena’s Chief Treasury Officer, David Silvesjö. “Firstly, it highlights our work to generate a strong cash flow in relation to indebtedness and, secondly, it is an established KPI used to a great extent by both investors, banks and credit rating agencies”.

For further information, please contact:

Jörgen Eriksson, CEO, Tel. +46 (0)730 70 22 42, jorgen.eriksson@catena.se
Sofie Bennsten, Deputy CEO and CFO, tel. +46 (0)730 70 22 41, sofie.bennsten@catena.se

David Silvesjö, Chief Treasury Officer, tel. +46 (0)730 70 22 22, david.silvesjo@catena.se

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This disclosure contains information that Catena is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 21-02-2023 15:30 CET.

•   Catena updates its finance policy