Working capital ratio, free cash flow and equity ratio

We predict that the working capital ratio, measured as the quarter-end average, will rise to just under 16 per cent, following the very low value achieved in 2017. The level of free cash flow will depend to a significant extent on working capital. As working capital is budgeted to rise sharply, we expect free cash flow to only be around neutral.

We intend to maintain our equity ratio, which is currently 49.4 per cent, at well above 40 per cent. The good level of equity reduces our dependency on capital markets in a volatile market environment.