2012 Annual Report - Italcementi Group

2012 Annual Report
Presentation 4
General information 14
Annual Report Consolidated Annual Report Directors’ report 146
Sustainability disclosure Italcementi S.p.A. Annual Report Separate financial statements 241
Extraordinary session 351
In 2012, taking advantage of the strong decrease in market reference rates, 435 million euro of new sevenyear
interest-rate swaps were arranged, taking the hedging profile to the highest levels contemplated by the
current management policy.
20.4.3. Net debt at inception and after interest-rate hedging
The evolution of net debt at December 31, 2012 is shown below:
12.31.2012 Maturity
less than
Maturity
1 to 2
Maturity
2 to 5
Maturity
more than
(in millions of euro)
1 year years years 5 years
Fixed-rate financial liabilities 105.7 0.8 0.8 0.6 103.6
Fixed-rate financial assets (9.9) - - - (9.9)
Floating- to fixed-rate hedging 810.0 150.0 50.0 175.0 435.0
Fixed-rate ND after hedging 905.8 150.8 50.8 175.6 528.7
Floating-rate financial liabilities 1,268.9 592.7 449.3 49.9 177.1
Floating-rate financial assets (402.9) (302.9) (100.0) -
Floating-rate ND at inception 866.0 289.8 449.3 (50.1) 177.1
Floating- to fixed-rate hedging (810.0) (150.0) (50.0) (175.0) ( 435)
Optional hedging - - - - -
Floating-rate ND after hedging 56.0 139.8 399.3 (225.1) (257.9)
Optional hedging - - - - -
Fair value of net derivatives 25.4 2.1 2.3 10.0 11
Total ND 987.2 292.6 452.3 (39.5) 281.9
At December 31, 2012, a +0.5% change in the interest-rate curve would have had an impact of -0.2 million
euro, that is, 0.5% of 2012 net finance costs. The impact on interest-rate derivatives in portfolio would be +17.8
million euro on equity and immaterial on profit before tax.
At December 31, 2012, a -0.5% change in the interest-rate curve would have had an impact of +0.2 million
euro, that is, 0.5% of 2012 net finance costs. The impact on interest-rate derivatives in portfolio would be
-18.4 million euro on equity and immaterial on profit before tax.
20.5. Management of currency risk
The company is structurally exposed to currency risks mainly on US dollar solid fuel purchases.
The company hedges exposure to the currency risk with forward currency purchase contracts, as well as call
and put options on exchange rates.These hedges are arranged with leading banks.
20.5.1. Exposure to currency risk
Foreign currency exposure refers largely to US dollars for solid fuel purchases.
At December 31, 2012, a 10% appreciation in the US dollar against the euro would have had an impact on
exchange-rate derivatives in portfolio of +1.9 million euro on equity and -0.1 million euro on profit before tax.
At December 31, 2012, a 10% depreciation in the US dollar against the euro would have had an impact on
exchange-rate derivatives in portfolio of -1.5 million euro on equity and an immaterial impact on profit before
tax.
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