NOTES TO THE FINANCIAL STATEMENTS continued
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 2018 Non-derivative financial liabilities Trade payables
168.7 109.1 334.5
10.7 82.6
22.4
2.7
204.5 444.7
Borrowings: interest Borrowings: principal
161.8
91.2
288.2
1,118.3
683.4
2,424.4
Derivative financial (assets)/liabilities Cross currency swaps: inflow Cross currency swaps: outflow Forward exchange contracts: inflow Forward exchange contracts: outflow
(291.7)
(330.0)
(546.2)
(524.3)
(1,692.2) 1,711.1
349.7
332.2
498.3
530.9
(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
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 2017 Non-derivative financial liabilities Trade payables
174.4
8.0
21.9
0.1
204.4 329.1
Borrowings: interest Borrowings: principal
87.7
84.0
142.1
15.3
400.0
204.3
1,195.4
348.2
2,147.9
Derivative financial (assets)/liabilities Cross currency swaps: inflow Cross currency swaps: outflow Forward exchange contracts: inflow Forward exchange contracts: outflow
(47.4)
(251.7)
(497.4)
(253.4)
(1,049.9) 1,158.3
55.5
336.8
508.1
257.9
(23.5)
– –
– –
– –
(23.5)
23.8
23.8
Net settled derivatives Interest rate swaps
29.2
17.5
17.8
(3.4)
61.1
Group contractual cash flows
699.7
398.9
1,387.9
364.7
2,851.2
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 $545.0 million (2017: $530.0 million).
101
Vector://AR 18
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