Company 36: Financial Instruments
Credit risk
The carrying amount of financial assets represents the maximum credit risk exposure. The maximum credit risk exposure at the reporting date:
| In TEUR | 2011 | 2010 |
|---|---|---|
| Available-for-sale financial assets | 14.031 | 9.035 |
| Loans | 79.935 | 64.617 |
| Trade and other receivables | 198.191 | 204.303 |
| Cash and cash equivalents | 58.090 | 49.678 |
| Other receivables from financing activities | 2.501 | 4.985 |
| Total | 352.748 | 332.618 |
The maximum credit risk exposure of trade receivables at the reporting date by geographic region:
| In TEUR | 2011 | 2010 |
|---|---|---|
| West European countries | 69,305 | 63,993 |
| East European countries | 106,240 | 94,615 |
| Other countries | 12,358 | 25,359 |
| Total | 187,903 | 183,967 |
The maximum credit risk exposure of trade receivables at the reporting date by type of customer:
| In TEUR | 2011 | 2010 |
|---|---|---|
| Wholesale customers | 187.607 | 183.705 |
| Other customers | 296 | 262 |
| Total | 187.903 | 183.967 |
| In TEUR | Gross amount 2011 | Allowance 2011 | Gross amount 2010 | Allowance 2010 |
|---|---|---|---|---|
| Not past due | 145.424 | 0 | 141.535 | 0 |
| Past due 1 to 45 days | 10.269 | 0 | 10.847 | 0 |
| Past due 46 to 90 days | 10.279 | 0 | 10.924 | 0 |
| Past due 91 to 180 days | 9.316 | 0 | 10.036 | 0 |
| Past due over 180 days | 21.109 | -8.494 | 16.644 | -6.019 |
| Total | 196.397 | -8.494 | 189.986 | -6.019 |
Movements in allowances for trade receivables:
| In TEUR | 2011 | 2010 |
|---|---|---|
| Balance at 1 January | 6.019 | 5.496 |
| Impairment loss | 3.259 | 1.961 |
| Payments | -414 | -570 |
| Write-down of receivables | -453 | -868 |
| Acceptance of allowance | 83 | 0 |
| Balance at 31 December | 8.494 | 6.019 |
Liquidity risk
Financial liabilities by maturity:
31 December 2011
| Non-derivative financial liabilities | ||||||
|---|---|---|---|---|---|---|
| In TEUR | Carrying amount | Contractual cash flows | 1 year or less | 1–2 years | 2–5 years | More than 5 years |
| Bank borrowings | 318.282 | 356.272 | 105.824 | 61.565 | 182.878 | 6.005 |
| Other financial liabilities | 35.521 | 35.521 | 35.521 | |||
| Trade payables | 142.027 | 142.027 | 142.027 | |||
| Other payables | 10.799 | 10.799 | 10.799 | |||
| Total | 506.629 | 544.619 | 294.171 | 61.565 | 182.878 | 6.005 |
| Derivative financial liabilities | ||||||
|---|---|---|---|---|---|---|
| In TEUR | Carrying amount | Contractual cash flows | 1 year or less | 1–2 years | 2–5 years | More than 5 years |
| Interest rate swaps | -5.134 | -4.508 | -1.896 | -1.196 | -1.416 | |
| Forward exchange contracts used for hedging | -393 | -393 | -393 | |||
| Outflow | -393 | -393 | -393 | |||
| Inflow | ||||||
| Other forward exchange contracts | ||||||
| Outflow | ||||||
| Inflow | ||||||
| Total | -5.527 | -4.901 | -2.289 | -1.196 | -1.416 | 0 |
31 December 2010
| Non-derivative financial liabilities | ||||||
|---|---|---|---|---|---|---|
| In TEUR | Carrying amount | Contractual cash flows | 1 year or less | 1–2 years | 2–5 years | More than 5 years |
| Bank borrowings | 272.545 | 296.164 | 105.281 | 76.999 | 102.823 | 11.061 |
| Other financial liabilities | 27.387 | 27.387 | 27.387 | |||
| Trade payables | 154.803 | 154.803 | 154.803 | |||
| Other payables | 16.282 | 16.282 | 16.282 | |||
| Total | 471.017 | 494.636 | 303.753 | 76.999 | 102.823 | 11.061 |
| Derivative financial liabilities | ||||||
|---|---|---|---|---|---|---|
| In TEUR | Carrying amount | Contractual cash flows | 1 year or less | 1–2 years | 2–5 years | More than 5 years |
| Interest rate swaps | -58 | -68 | -51 | -17 | ||
| Forward exchange contracts used for hedging | -20 | -20 | -20 | |||
| Outflow | -20 | -20 | -20 | |||
| Inflow | ||||||
| Other forward exchange contracts | -14.106 | -14.106 | -14.106 | |||
| Outflow | -14.106 | -14.106 | -14.106 | |||
| Inflow | ||||||
| Total | -14.184 | -14.194 | -14.177 | -17 | 0 | 0 |
Currency risk
Exposure to currency risk:
| In TEUR | EUR | HRK | DKK | PLN | USD | HUF | Other currencies |
|---|---|---|---|---|---|---|---|
| Trade receivables | 181.274 | 6.505 | 124 | ||||
| Financial liabilities | -353.803 | ||||||
| Trade payables | -136.687 | -4.859 | -87 | -394 | |||
| Financial position exposure | -309.216 | 0 | 0 | 0 | 1.646 | -87 | -270 |
| Forward exchange contracts | 7.600 | ||||||
| Net exposure | -309.216 | 0 | 0 | 0 | 9.246 | -87 | -270 |
| In TEUR | EUR | HRK | DKK | PLN | USD | HUF | Other currencies |
|---|---|---|---|---|---|---|---|
| Trade receivables | 177.817 | 2.501 | 3.585 | 2 | 62 | ||
| Financial liabilities | -299.931 | ||||||
| Trade payables | -152.786 | -1.450 | -117 | -450 | |||
| Financial position exposure | -274.900 | 2.501 | 0 | 0 | 2.135 | -115 | -388 |
| Forward exchange contracts | 5.810 | -14.106 | |||||
| Net exposure | -274.900 | 2.501 | 0 | 0 | 7.945 | -115 | -14.494 |
The following significant exchange rates were applied during the year:
| Average rate | Reporting date spot rate | |||
|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | |
| HRK | 7,438 | 7,289 | 7,537 | 7,383 |
| DKK | 7,451 | 7,447 | 7,434 | 7,454 |
| PLN | 4,119 | 3,995 | 4,458 | 3,975 |
| USD | 1,392 | 1,327 | 1,294 | 1,336 |
| HUF | 279,310 | 275,354 | 314,580 | 277,950 |
Sensitivity analysis
A 5 percent increase in the euro's value against the above stated currencies as at 31 December would have resulted in an increase (decrease) in profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain unchanged. The analysis has been performed on the same basis as for 2010.
| In TEUR | Profit or loss |
|---|---|
| HRK | 0 |
| DKK | 0 |
| PLN | 0 |
| USD | -462 |
| HUF | -4 |
| Other currencies | -13 |
| In TEUR | Profit or loss |
|---|---|
| HRK | -125 |
| DKK | 0 |
| PLN | 0 |
| USD | -397 |
| HUF | -6 |
| Other currencies | -725 |
A 5 percent decrease in the euro's value against the above stated currencies as at 31 December would have had equal yet opposite effect, provided that all other variables remain unchanged.
Interest rate risk
Exposure to interest rate risk:
| In TEUR | 2011 | 2010 |
|---|---|---|
| Fixed rate financial instruments | ||
| Financial assets | 35.027 | 17.243 |
| Financial liabilities | 0 | 0 |
| Variable rate financial instruments | ||
| Financial assets | 44.824 | 47.374 |
| Financial liabilities | -353.803 | -299.931 |
Fair value sensitivity analysis for fixed rate instruments
No fixed rate financial instruments at fair value through profit or loss and derivatives designated as fair value hedge are recorded. Therefore a change in the interest rate at the reporting date would not have any impact on profit or loss.
Fair value sensitivity analysis for variable rate instruments
A change in the interest rate by 50 basis points (bp) at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign exchange rates, remain unchanged. The analysis has been performed on the same basis as for 2010.
| In TEUR | Profit or loss | Other comprehensive income | ||
|---|---|---|---|---|
| Increase by 50 bp | Decrease by 50 bp | Increase by 50 bp | Decrease by 50 bp | |
| 31 December 2011 | ||||
| Variable rate instruments | -3.670 | 3.670 | 0 | 0 |
| Interest rate swap contracts | 526 | -526 | 1.499 | -1.499 |
| Cash flow variability (net) | -3.144 | 3.144 | 1.499 | -1.499 |
31 December 2010 | ||||
| Variable rate instruments | -2.748 | 2.748 | 0 | 0 |
| Interest rate swap contracts | 0 | 0 | 0 | 0 |
| Cash flow variability (net) | -2.748 | 2.748 | 0 | 0 |