2012 Annual Report - Italcementi Group

2012 Annual Report
Presentation 4
General information 14
Annual Report Consolidated Annual Report Directors’ report 30
Sustainability disclosure Italcementi S.p.A. Annual Report Consolidated financial statements 63
Extraordinary session 351
22.4.2 Exposure to interest-rate risk
At December 31, 2012, 89% of Group net debt (not including the fair value of derivatives) was at a fixed rate or
hedged against the risk of rate increases. 69% of fixed-rate commitments arose from swapped contracts
initially arranged at floating rates.
Hedges are stated at nominal value for the period in question (consistently with instrument maturity) and do not
include fixed-rate to fixed-rate contracts.
22.4.3 Net debt at inception and after interest-rate hedging
The evolution of net debt at December 31, 2012 is illustrated below:
Maturity
(in millions of euro) 12.31.2012 < 1 year 1 - 2 years 2 - 5 years Beyond
Fixed-rate financial liabilities 1,398.5 35.8 3.0 531.6 828.1
Fixed-rate financial assets (5.1) - - - (5.1)
Fixed-rate ND at inception 1,393.4 35.8 3.0 531.6 823.0
Fixed- to floating-rate hedges (815.0) (165.0) (650.0)
Floating- to fixed-rate hedges 1,289.3 225.0 225.8 327.7 510.8
Fixed-rate ND after hedging 1,867.7 260.8 228.8 694.3 683.8
Floating-rate financial liabilities 1,344.5 690.2 499.9 81.9 72.5
Floating-rate financial assets (628.8) (605.8) - (5.6) (17.3)
Floating-rate ND at inception 715.7 84.4 499.9 76.3 55.2
Fixed- to floating-rate hedges 815.0 - - 165.0 650.0
Floating- to fixed-rate hedges (1,289.3) (225.0) (225.8) (327.7) (510.8)
Optional hedges - - - - -
Floating-rate ND after hedging 241.4 (140.6) 274.1 (86.4) 194.4
Optional hedges - - - - -
Fair value of derivatives, net (110.9) (13.8) 2.3 10.0 (109.4)
Net debt 1,998.3 106.4 505.1 617.9 768.8
At December 31, 2012, a +0.5% change in the interest-rate curve would have an impact of -1.2 million euro,
that is, 1.4% of 2012 net financial costs. The impact on interest-rate derivatives in portfolio would be +16.7
million euro on equity and -19.5 million euro on profit before tax; the latter effect would be countered by an
effect of +25.6 million euro on fixed-rate liabilities with fair value hedges.
At December 31, 2012, a -0.5% change in the interest-rate curve would have an impact of +1.2 million euro,
that is, 1.4% of 2012 net finance costs. The impact on interest-rate derivatives in portfolio would be -17.3
million euro on equity and +20.4 million euro on profit before tax; the latter effect would be countered by an
effect of -26.7 million euro on fixed-rate liabilities with fair value hedges.
22.5 Management of currency risk
The Group companies are structurally exposed to currency risks on cash flows from business operations and
financing operations denominated in currencies other than their respective reporting currencies.
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