Vector Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS

22. Financial risk management:// CONTINUED 22.3 Liquidity risk

TOTAL CONTRACTUAL CASH FLOWS $000

PAYABLE <1 YEAR $000

PAYABLE 1-2 YEARS $000

PAYABLE 2-5 YEARS $000

PAYABLE >5 YEARS $000

Contractual cash flows maturity profile 2017 Non-derivative financial liabilities Trade payables

174,435 87,724

8,025

21,874

93

204,427 329,140

Borrowings: interest Borrowings: principal

84,026 142,138

15,252

400,000 204,299 1,195,377 348,176

2,147,852

Derivative financial (assets)/liabilities Cross currency swaps: inflow Cross currency swaps: outflow Forward exchange contracts: inflow Forward exchange contracts: outflow

(47,392)

(251,691)

(497,378)

(253,425)

(1,049,886) 1,158,347

55,518 336,758 508,127 257,944

(23,523) 23,787

– –

– –

– –

(23,523) 23,787

Net settled derivatives Interest rate swaps

29,173

17,503

17,816

(3,389)

61,103

Group contractual cash flows

699,722 398,920 1,387,954 364,651

2,851,247

TOTAL CONTRACTUAL CASH FLOWS $000

PAYABLE <1 YEAR $000

PAYABLE 1-2 YEARS $000

PAYABLE 2-5 YEARS $000

PAYABLE >5 YEARS $000

Contractual cash flows maturity profile 2016 Non-derivative financial liabilities Trade payables

146,703 95,285

10,306

18,006

82

175,097 292,610

Borrowings: interest Borrowings: principal

63,246 114,794

19,285

513,764 400,000 837,911 437,342

2,189,017

Derivative financial (assets)/liabilities Cross currency swaps: inflow Cross currency swaps: outflow Forward exchange contracts: inflow Forward exchange contracts: outflow

(142,688) 157,016

(49,065)

(578,809)

(456,627)

(1,227,189) 1,304,420

56,198 668,730 422,476

(3,301)

– –

– –

– –

(3,301)

3,460

3,460

Net settled derivatives Interest rate swaps

42,348

28,305

49,247

4,279

124,179

Group contractual cash flows

812,587 508,990 1,109,879 426,837

2,858,293

The above table shows the timing of non-discounted cash flows for all financial instrument liabilities and derivatives. The cash flows for capital bonds, included in borrowings, are disclosed as payable within 2 – 5 years as the next election date set for the capital bonds is 15 June 2022 and the bonds have no contractual maturity date.

Policies

Vector is exposed to liquidity risk where there is a risk that the group may encounter difficulty in meeting its day to day obligations due to the timing of cash receipts and payments. The objective is to ensure that adequate liquid assets and funding sources are available at all times to meet both short term and long term commitments. The board has set a minimum headroom requirement for committed facilities over Vector’s anticipated 18 month peak borrowing requirement. At balance date, in addition to short-term deposits, Vector has access to undrawn funds of $530.0 million (2016: $315.0 million).

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