annual financial statement 2011 - conwert Immobilien Invest SE
annual financial statement 2011 - conwert Immobilien Invest SE
annual financial statement 2011 - conwert Immobilien Invest SE
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Annual Financial Report <strong>2011</strong><br />
Finance<br />
This category includes all indirect and direct risks which have a significant effect on securing<br />
liquidity, securing solvency and thus the going concern of the <strong>conwert</strong> Group. It comprises<br />
securing income, securing cash and cash equivalents and hedges of interest charges on<br />
loans. In addition, it contains risks related to the timely and correct reporting to authorities<br />
and investors.<br />
<strong>conwert</strong> manages its liquidity requirements on the basis of continuously updated liquidity<br />
planning, which takes into account the probable and foreseeable cash inflows and outflows.<br />
Nevertheless, it cannot be ruled out that correlating endogenous or exogenous events in<br />
other risk categories can lead to liquidity shortages. With respect to compliance with timely<br />
reporting to authorities and investors, improvements in the systems used, their operational<br />
safety and the processes and methods applied are made on an ongoing basis. In the case of<br />
a longer-term complete failure of the systems used, delays may occur which make timely<br />
reporting impossible.<br />
Key financing and foreign exchange risks<br />
Description of risk Effects Counter-measures<br />
Capital market<br />
+ Volatility or crashes on<br />
exchanges<br />
+ Financial risks<br />
Interest rate risks<br />
+ Rising interest rates<br />
Credit risks<br />
+ Restrictive supplies of<br />
loans by banks<br />
Foreign exchange risks<br />
+ Volatile foreign<br />
currencies<br />
Risks from <strong>financial</strong><br />
instruments<br />
+ Negative effects from<br />
evaluations<br />
+ Inefficient hedging of<br />
loan liabilities<br />
+ More difficult to secure equity<br />
+ Less liquidity<br />
+ Impaired capabilities of<br />
expansion<br />
+ Increasing costs of financing<br />
+ Scarcity of liquidity<br />
+ Increasing costs of financing<br />
+ Scarcity of liquidity<br />
+ Scarcity of liquidity<br />
+ Lessening of equity<br />
+ Evaluation of inefficient<br />
hedges negatively influences<br />
<strong>financial</strong> results<br />
+ Broad and long-term spreading of<br />
loans<br />
+ Strengthening of in-group <strong>financial</strong><br />
resources<br />
+ Ongoing planning and management<br />
of liquidity<br />
+ Extending of liquidity base<br />
+ Entering into interest rate hedges<br />
(84.0 % of the variable-interest<br />
volume of financing is hedged)<br />
+ Ongoing assessing of risks from<br />
non-hedged credit volume<br />
+ Broad and long-term spreading of<br />
loans<br />
+ Strengthening of in-group <strong>financial</strong><br />
resources<br />
+ Broad and long-term spreading of<br />
loans (average term of 11 years,<br />
received from more than 51 banks)<br />
+ <strong>conwert</strong> is nearly exclusively active<br />
in Eurozone (97 % of property<br />
assets)<br />
+ <strong>conwert</strong> has basically no foreign<br />
currency liabilities<br />
+ Umbrella hedges in holding<br />
company enable flexible<br />
assignment of loan liabilities at the<br />
SPV level<br />
+ The average interest rate on<br />
hedges amounts to 4.09 %<br />
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