20. Financial risk management CONTINUED 20.3 Liquidity risk
TOTAL CONTRACTUAL CASH FLOWS $M
PAYABLE < 1 YEAR $M
PAYABLE 1 – 2 YEARS $M
PAYABLE 2 – 5 YEARS $M
PAYABLE > 5 YEARS $M
Contractual cash flows maturity profile 2019 Non-derivative financial liabilities Trade payables
154.6
–
–
–
154.6
9.7 9.0
9.6 6.9
19.0 16.3
2.2
40.5 51.9
Contract liabilities
19.7 74.4
Lease liabilities
89.4
74.8
147.0
385.6
Borrowings: interest Borrowings: principal
685.2
350.0
1,011.6
696.5
2,743.3
Derivative financial (assets)/liabilities Cross currency swaps: inflow
(332.3)
(33.8)
(532.0)
(512.2)
(1,410.3) 1,294.2
326.1
25.8
458.1
484.2
Cross currency swaps: outflow
(13.0)
– –
– –
– –
(13.0)
Forward exchange contracts: inflow Forward exchange contracts: outflow
13.1
13.1
Net settled derivatives Interest rate swaps
29.7
22.6
28.8
6.2
87.3
Group contractual cash flows
971.5
455.9
1,148.8
771.0
3,347.2
TOTAL CONTRACTUAL CASH FLOWS $M
PAYABLE < 1 YEAR $M
PAYABLE 1 – 2 YEARS $M
PAYABLE 2 – 5 YEARS $M
PAYABLE > 5 YEARS $M
Contractual cash flows maturity profile 2018 Non-derivative financial liabilities Trade payables
160.3
–
–
–
160.3
Contract liabilities Borrowings: interest Borrowings: principal
8.5
10.7 82.6
22.4
2.6
44.2
109.1 334.5
161.8
91.2
444.7
288.2
1,118.3
683.4
2,424.4
Derivative financial (assets)/liabilities Cross currency swaps: inflow
(291.7)
(330.0)
(546.2)
(524.3)
(1,692.2) 1,711.1
Cross currency swaps: outflow
349.7
332.2
498.3
530.9
Forward exchange contracts: inflow Forward exchange contracts: outflow
(8.4)
– –
– –
– –
(8.4)
8.5
8.5
Net settled derivatives Interest rate swaps
21.0
22.1
13.3
(0.8)
55.6
Group contractual cash flows
691.4
405.8
1,267.9
783.1
3,148.2
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 $585.0 million (2018: $545.0 million).
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