Financial statements
Section D: Notes to the THT and TIL financial statements for the year ended 30 June 2024
Section D: Notes to the THT and TIL financial statements for the year ended 30 June 2024
D11
Financial risk management and derivatives (continued)
Market risk Foreign exchange risk Exposure Exposure to foreign currency risk after hedging at the reporting date, denominated in the currency in which the risk arises, are as follows: THT THT TIL 2024 2023 2024 2023 2024 2023 USD USD CHF CHF AUD AUD $M $M $M $M $M $M Receivables 587 588 — — 283 262 Payables (553) (553) — — (53) (27) Borrowings (2,143) (2,143) (565) (565) — — Cross-currency interest rate swaps 2,143 2,143 565 565 — — Net exposure 34 35 — — 230 235 Hedging instruments Derivative instruments designated as hedging instruments of foreign currency risk and the effects of the hedge accounting relationship are as follows: THT 2024 2023 $M $M Cross-currency interest rate swaps hedging borrowings denominated in foreign currencies Carrying amount of cross-currency interest rate swaps 512 511 Notional amount 3,630 3,630 Hedge ratio 1:1 1:1 Change in fair value of outstanding hedging instruments since 1 July 74 123 Change in value of hedged item used to determine hedge effectiveness (68) (119) The Group’s borrowing exposures to foreign currency risk and cross-currency interest rate swaps that are hedging foreign denominated borrowings at the reporting date are shown below: THT 2024 2023 2024 2023 USD USD CHF CHF $M $M $M $M Borrowings 1 (2,143) (2,143) (565) (565) Cross-currency interest rate swaps Receive notional value 1 2,143 2,143 565 565 Pay notional value AUD (2,856) (2,856) (774) (774) Average exchange rate 0.75 0.75 0.73 0.73
1. Balances are presented in respective currency. An analysis of maturities of THT’s borrowings is provided in the liquidity risk section below.
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