3.1 Capital management

Capital management has the following objectives:

• securing sufficient liquidity to meet the Group’s needs to fulfil its financial obligations;
• securing sufficient funding capacity for future investments and acquisitions;
• ensuring creditworthiness;
• achieving an appropriate risk-adjusted return for investors.

In response to ongoing economic and geopolitical uncertainties, including the war in Ukraine, dormakaba has maintained a strong focus on tightly managing cash positions and net working capital. This includes stringent credit management, disciplined collection of trade receivables, and careful cash conversion to effectively mitigate risks. Daily monitoring of liquidity and financial debt status at the Group level, including oversight of financial covenants and undrawn credit facilities, remains a key priority. Alongside these cash management efforts, dormakaba also conducts regular reviews of safety stocks to ensure supply capabilities amidst ongoing supply chain challenges, further reinforcing the companyʼs financial stability.

Borrowings and other financial liabilities

Credit facility

As of 30 June 2024, short-term bank loans and overdrafts amount to CHF 5.0 million (2022/23: CHF 110.0 million).

In November 2020, dormakaba secured a five-year syndicated credit facility in the amount of CHF 525 million that includes options for a prolongation of two additional years and for an increase of up to CHF 200 million. In line with our ambitious sustainability strategy, the contract contains an incentivized ESG (Environmental, Social, and Governance) performance target for CO₂ reduction. The syndicated credit facility contains the leverage ratio as the only financial covenant. It is calculated based on net debt relative to EBITDA for the past 12 months as of June and December. As of 30 June 2024 and throughout the 2023/24 financial year, dormakaba complied with the financial covenant.

Net debt

The key figures, including the maturities, as of 30 June 2024 and 30 June 2023 are disclosed below.

The interest expenses for short-term bank loans and overdrafts are recorded within other interest expenses. Interest expenses are disclosed in detail in the note on the financial result (1.5).

Bonds

dormakaba Finance AG issued bonds with a total nominal value of CHF 595 million (ISIN CH0384629892 and ISIN CH1206367497). Of this amount, CHF 320 million will mature in October 2025 and CHF 275 million will mature in October 2027.

The interest expenses for the bonds amount to CHF 13.6 million in 2023/24 (2022/23: CHF 10.6 million). This is disclosed in the note on the financial result (1.5).