Financial risk The management determines its assessment on the basis of different realistically assessed parameters, such as future market expectations, sector growth rates, industry studies, economic realities, budgets and multi-year plans, expected profitability studies, etc. The most important elements within the Group that are subject to this are: impairments, provisions and deferred tax items. Credit risk In view of the relative concentration of credit risk (see note III.6.9 Trade receivables), the company covers credit risk on trade receivables via an excess of loss credit insurance with an own risk exposure of EUR 375 thousand. In addition, credit control strategies and procedures have been elaborated in order to monitor individual customers’ credit risk.
III. 6. 29. Capital structure management The equity structure of the Sioen Group is managed with the main objectives of: >> protecting the equity structure so as to ensure continuous business operations resulting in the creation of shareholder value, and benefits for other stakeholders; >> the payment of an appropriate dividend to shareholders. The Group’s capital is formed in accordance with the risk, which changes with economic developments and the risk profile of the underlying assets. The Sioen Group can change the dividend to shareholders, issue new shares or sell assets in order to maintain or change the capital structure. The Board of Directors of Sioen Industries views equity together with the 10-year bond loan (cf. III.6.11. Borrowings) as permanent capital. At 31/12/2010 equity and the bond loans represented respectively 42.0% and 28.7% and together 70.7% of the balance sheet total.
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