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 D: Notes to the THT and TIL financial statements for the year ended 30 June 2022

Section D: Notes to the THT and TIL financial statements for the year ended 30 June 2022

D11 Derivatives and financial risk management The instruments used by the Group are described in Note B15.

2022

2021

$M

$M

Current

Non-current

Current

Non-current

THT

TIL

THT

TIL

THT

TIL

THT

TIL

Assets Interest rate swap contracts

— 22 22

— — —

262 426 688

— — — — — —

— — —

— — — — — —

28 16 44

— — —

Cross currency interest rate swap contracts Total derivative financial instrument assets

Liabilities Interest rate swap contracts

— — —

49 — 49

— — —

2

77

113

Cross currency interest rate swap contracts Total derivative financial instrument liabilities

131 208

2

113

Market risk Foreign exchange risk The effects of the foreign currency related hedging instruments on THT’s financial position and performance are as follows: THT

2022

2021

$M

$M

Cross-currency interest rate swaps Carrying amount

448

(115)

Notional amount

3,909

3,909

Hedge ratio

1:1

1:1

Increase/(decrease) in discounted value of outstanding hedging instruments since inception (Decrease)/increase in value of hedged item used to determine hedge effectiveness

615

(256)

(636)

275

Maturity profile—notional value of cross-currency interest rate swaps are as follows: THT

Total nominal amount

Less than 12 months

2022

1–5 years Over 5 years

$M Cross-currency interest rate swaps (AUD:USD) 3

— — —

285 0.76 5.2% 375 0.74 4.5%

1,858 0.75 4.9% 190 0.71 3.3%

2,143

Average AUD-USD exchange rate

NA¹ NA¹

Average fixed interest rate 2

Cross-currency interest rate swaps (AUD:CHF) 4

200 0.72 4.6%

765

Average AUD-CHF exchange rate Average fixed interest rate 2

NA¹ NA¹

Total nominal amount

Less than 12 months

2021

1–5 years Over 5 years

$M Cross-currency interest rate swaps (AUD:USD) 3

— — — — — —

155

1,988

2,143

Average AUD-USD exchange rate

NA¹ NA¹ 765 NA¹ NA¹

Average fixed interest rate 2

5.5%

4.9%

Cross-currency interest rate swaps (AUD:CHF) 4

400

365

Average AUD-CHF exchange rate Average fixed interest rate 2

4.5%

3.9%

1. NA—Not applicable. 2. Based on average fixed rate of cross currency swap contracts, which does not include any margins that may be applicable on the hedged debt instrument.

3. Balances are presented in USD currency. 4. Balances are presented in CHF currency.

205 205

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