Moreover, the improvement in trading margins is in line with Nestlé's policy in recent years and the explicit intention to do whatever is necessary to sustainably raise the Group's overall performance levels. Due to the good development of the operating cash flow, up 28.5%, the ratio of net debt to equity today stands at 24.7%, showing a very healthy financial situation. .
These results stem from a broad range of measures taken in recent years with a view to optimizing asset utilization in all areas and to encourage innovation. Nestlé have thus paid great attention to reducing working capital and keeping an eye on production costs. The Group keeps looking for long-term relationships with its commercial partners and international suppliers who can frequently offer goods and services at lower prices while fully respecting the quality requirements. Wherever possible, the Group is improving its capacity utilization in the factories. Nestlé has thus been able to meet additional demand without increasing our spending on fixed assets. Indeed, such expenditures, both as a percentage of sales and in absolute terms, show a slight decrease after some years of stability. The Group keeps on reducing the number of individual products and packaging sizes and pay special attention to the product range. All of these optimization measures are part of a long-term process and require a permanent openness to change. The results obtained in 1999 are encouraging; and the Group is convinced that in the years to come, the process currently under way will produce noticeable improvements. Finally, the competitiveness of the Group - and its perspective for the future - depends on its ability to deliver, year after year, a satisfactory performance without in any way compromising its long-term potential for growth. They continue to provide for the future by investing in new products by constantly reinforcing the key brands and by increasing its market share in all parts of the world.