182 / 278
CONSOLIDATED FINANCIAL REPORT | EXPLANATORY NOTES
182
C.1 CAPITAL RISK MANAGEMENT
The Group's objective in capital risk management is mainly to safeguard business continuity in order to
guarantee returns for shareholders and benefits for other stakeholders. The Group also aims to maintain an
optimal capital structure in order to reduce the cost of debt and to comply with a series of covenants required
by the various Credit Agreements (Note 32. Financial covenants).
The Group also monitors capital on the basis of its gearing ratio (ie. the ratio between net financial position
and capital). Details of how the net financial position is determined can be found in Note 12. Borrowings from
banks and other lenders. Capital is equal to the sum of equity, as reported in the Group consolidated
financial statements, and the net financial position.