2022 Corporate Report

Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Section B: Notes to the Group financial statements for the year ended 30 June 2022

Section B: Notes to the Group financial statements for the year ended 30 June 2022

B15 Derivatives and financial risk management (continued) Liquidity risk (continued) Contractual maturities of financial liabilities The amounts disclosed in the following table are the contractual undiscounted cash flows of the Group’s financial liabilities.

Total contractual cash flows

2022

1 year or less

Over 1 to 2 years

Over 2 to 3 years

Over 3 to 4 years

Over 4 to 5 years

Over 5 years

Carrying amount

$M Trade payables

463

463

463

Borrowings

1,434

893

2,105

2,866

1,827

11,572

20,697

17,643

Interest rate swaps 1,2

(14)

(49)

(37)

(32)

(28)

(101)

(261)

(214) (580)

Cross-currency interest rate swaps 1,3 Power purchase agreements Concession and promissory notes

196

186

186

150

118

318

1,154

(3)

(3)

(2)

(6)

(5)

4

(15)

(14)

— 17

— 17

— 19

— 19

— 20

629

629 160 361

140 131 260

Lease liabilities Other liabilities

68

213

4

4

5

5

130

Total

2,306

1,048

2,275

3,002

1,937

12,620

23,188

17,829

Total contractual cash flows

2021

1 year or less

Over 1 to 2 years

Over 2 to 3 years

Over 3 to 4 years

Over 4 to 5 years

Over 5 years

Carrying amount

$M Trade payables

397

397

397

Borrowings

1,015

1,483

1,108

2,135

2,716

12,790

21,247

17,831

Interest rate swaps 1,2

66

48

32

19

9

26

200

187 367 133 141 133

Cross-currency interest rate swaps 1,3 Concession and promissory notes

210

209

198

198

163

474 601

1,452

— 16 86

— 16

— 17

— 19

— 19

601 174 243

Lease liabilities Other liabilities

87

4

4

5

5

139

Total

1,790

1,760

1,359

2,376

2,912

14,117

24,314

19,189

1. The carrying value of the interest rate and cross-currency interest rate swaps are presented on a net basis. The gross position is disclosed in the first table of Note B15. 2. Cash flows have been estimated using forward interest rates at the end of the reporting period. 3. Cash flows have been estimated using spot translation rates at the end of the reporting period. Capital management The Group's objectives when managing capital are to safeguard its ability to continue as a going concern and to maintain an optimal capital structure to reduce the cost of capital, so that it can continue to provide returns to security holders and benefits for other stakeholders. Fair value measurements The carrying amount of the Group’s financial assets and liabilities approximate their fair value. With current borrowings, this is due to the interest payable being close to current market rates or the borrowings are of a short-term nature. The fair values of non-current borrowings are determined based on discounted cash flows using a current borrowing rate. They are classified as level 2 fair values in the fair value hierarchy due to the use of observable inputs. Fair value is categorised within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement as a whole: • Level 1—quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2—inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and • Level 3—inputs for the asset or liability that are not based on observable market data (unobservable inputs). All of the Group’s financial instruments measured, recognised and disclosed at fair value are valued using market observable inputs (level 2), except for the Financial PPAs (level 3).

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