Our financing model ensures that long-term debt is centralized at Group level, while short-term debt is decentralized to support daily operations, which gives flexibility to local teams. Our balance sheet structure dictates that around 70% of liquid assets should be financed with short-term resources. However, as a facilitator for the business, Finance may temporarily adjust its balance sheet structure to ensure support of growth ambitions while providing cost-efficient funding for ongoing operations. LDC’s equity management also ensures sustainable and ambitious growth through the allocation of at least 50% of prior year’s net income to retained earnings. Current practice also dictates that dividends are capped to 50% of prior year’s net income. In addition, however, proceeds from potential strategic divestments may discretionarily be distributed to shareholders.