innogy re-iterates financial discipline targets and strategic direction for the future
- Target leverage factor of around 4.0x net debt to adjusted EBITDA and payout ratio of 70-80% of adjusted net income confirmed
- Investment programme 2018-2020 subject to financing capacity and innogy’s hurdle rate framework
- Growth focused on core activities and expansion of e-mobility, broadband and solar business
- Implementation of further cost discipline measures underway
innogy SE re-iterates its financial discipline targets as a core building block for the implementation of the ‘4P’ strategy towards 2025.
A leverage factor of around 4.0x net debt to adjusted EBITDA and a payout ratio of 70-80% of adjusted net income continue to be the key financial metrics that we apply in our business. Delivering sustainable bottom line growth in line with innogy's financial targets is the key driver for the implementation of our strategy. We are fully aware of the importance the capital market attributes to a stable and attractive dividend and reasonable leverage.
Focus of the investment programme 2018 to 2020 remains on innogy’s core activities in the Renewables, Grid & Infrastructure and Retail segments. In addition, the Executive Board is convinced that the areas of e-mobility, broadband and solar provide attractive growth opportunities.
The execution of additional growth opportunities is subject to the company’s strict investment framework and funding capacity. innogy will review the funding of growth projects by assessing all options regarding ownership and financing structure in order to maximise value for the company and its shareholders. innogy currently does not see the necessity for any additional equity measures.
The innogy Executive Board is currently reviewing discretionary spending across all segments for the potential to deliver further cost reductions. innogy will provide additional transparency with its full year results announcement on March 12, 2018.