Annual Report 2013 - Mainfreight

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3 Financial Risk Management Objectives and Policies (continued) Foreign Currency Risk (continued) 2013 AU$000 Group 2012 AU$000 2013 AU$000 Parent 2012 AU$000 Net Assets & AU$ Advances of Australian Subsidiaries 75,262 68,919 – – Investment in Australian Subsidiaries & Advances in AU$ – – 7,420 5,537 Net Assets Relating to Australian Subsidiaries Exposed to Currency Risk 75,262 68,919 7,420 5,537 US$000 US$000 US$000 US$000 Net Assets & US$ Advances of American & Asian Subsidiaries 47,063 43,829 – – Investment in American & Asian Subsidiaries in US$ – – 17,137 17,805 Net Assets Relating to American and Asian Subsidiaries Exposed to Currency Risk 47,063 43,829 17,137 17,805 EU€000 EU€000 EU€000 EU€000 Net Assets & EU€ Advances of European Subsidiaries 14,820 13,125 – – Investment in European Subsidiaries and advances in EU€ – – 10,205 9,679 Net Assets Relating to European Subsidiaries Exposed to Currency Risk 14,820 13,125 10,205 9,679 Currency movements in the foreign denominated balances above are reflected in the Foreign Currency Translation Reserve. The movements were comprised of the following: Group Parent 2013 NZ$000 2012 NZ$000 2013 NZ$000 2012 NZ$000 Retranslation of Net Assets in Foreign Subsidiaries (3,550) (9,034) – – Tax on Unrealised Foreign Exchange Gain (1,916) (3,318) – – Movement in Foreign Currency Translation Reserve (5,466) (12,352) – – The Group is exposed to currency risk in relation to trading balances denominated in other than the NZ dollar, principally by the trading of the Group’s overseas businesses. At 31 March 2013 the Group has the following monetary assets and liabilities denominated in foreign currencies: 78% of trade accounts payable (2012 86%), 74% of trade accounts receivable (2012 75%), 92% of cash assets (2012 92%), and 54% of cash liabilities (2012 100%). These amounts are inclusive of the above balances held in foreign subsidiaries. 84 Mainfreight | Annual Report 2013
3 Financial Risk Management Objectives and Policies (continued) Foreign Currency Risk (continued) The following sensitivity is based on the foreign currency risk exposures in existence at the balance sheet date: At 31 March 2013, had the New Zealand Dollar moved as illustrated in the table below with all other variables held constant, post tax profit and equity would have been affected as follows: Judgements of reasonably possible movements: Post Tax Profit Higher/(Lower) 2013 $000 2012 $000 Equity Higher/(Lower) Group NZD/USD +10% (861) (690) (5,405) (5,198) NZD/USD -10% 1052 844 6,607 6,353 NZD/AUD +10% (1,687) (1,499) (9,870) (9,306) NZD/AUD -10% 2,062 1,833 12,062 11,374 NZD/EURO +10% 172 (2,032) (8,106) (7,959) NZD/EURO -10% (210) 2,484 9,909 9,728 Parent NZD/USD +10% (69) (48) (69) (48) NZD/USD -10% 84 58 84 58 NZD/AUD +10% (594) (391) (594) (391) NZD/AUD -10% 726 478 726 478 NZD/EURO +10% 9,450 10,255 9,450 10,255 NZD/EURO -10% (11,550) (12,534) (11,550) (12,534) The movement in equity is a combination of movement in post tax profit and the movement in the Foreign Currency Translation Reserve as values of overseas investments in subsidiaries change. Management believes the balance date risk exposures are representative of the risk exposure inherent in the financial instruments. Credit Risk In the normal course of business the Group is exposed to credit risk from financial instruments including cash, trade receivables, loans to team members and derivative financial instruments. Receivable balances are monitored on an ongoing basis with the result that, in management’s view, the Group’s exposure to bad debts is not significant. The Group does not have concentrations of credit risk by industry but does have concentrations by geographical sectors (refer to Segment Reporting in note 5). With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents, loans to team members and certain derivative instruments, the Group’s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. The Group has a policy only to deal with registered banks or financial institutions with high quality credit ratings. It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures including an assessment of their independent credit rating, financial position, past experience and industry reputation. Risk limits are set for each individual customer in accordance with parameters set by the Board. These risk limits are regularly monitored. 2013 $000 2012 $000 Financial Statements 85
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Mainfreight Annual Report 2013 Recr
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The Mainfreight business has become
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Facts & Figures Our operations are
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Wherever we are in the world, all o
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on any given day We're tackling our
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Group Managing Director's report As
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Continued investment in facilities
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once again working to provide Austr
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We continue to work hard to further
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We have increased our trans-border
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Margin levels have been impacted as
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Laurie McMahon, Mainfreight Christc
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Environment Mainfreight has always
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Our people We have no widgets or ga
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28 Mainfreight | Annual Report 2013
Page 32 and 33: Kelvin Teasdale, Lee Tuhura, Chris
Page 34 and 35: Wim Bosman Genk Steven Bleys, Rosol
Page 36 and 37: on any given day Behind the scenes
Page 38 and 39: Marcel ter Heerdt, Driver in Domest
Page 40 and 41: on any given day Mainfreight has he
Page 42 and 43: Executive Team Carl George National
Page 44 and 45: Executive Team continued Carl Howar
Page 46 and 47: Targets & Achievements Recent Curre
Page 48 and 49: Capital Expenditure This year’s f
Page 50 and 51: Corporate Governance THE ROLE OF TH
Page 52 and 53: on any given day Wherever we are in
Page 54 and 55: on any given day Whatever we do, wh
Page 56 and 57: Board of directors Emmet Hobbs Inde
Page 58 and 59: 60 As we drive ourselves hard in th
Page 60 and 61: Operating Statistics How we measure
Page 62 and 63: Financial Contents 65 Income Statem
Page 64 and 65: Balance Sheet as at 31 March 2013 N
Page 66 and 67: Statement of Changes in Equity for
Page 68 and 69: Cash Flow Statement for the Year En
Page 70 and 71: 2 Summary of Significant Accounting
Page 84 and 85: 3 Financial Risk Management Objecti
Page 86 and 87: 5 Segmental Reporting The Group ope
Page 88 and 89: 6 Expenses and Other Income The Pro
Page 90 and 91: 7 Income Tax (continued) Recognised
Page 92 and 93: 9 Earnings Per Share The following
Page 94 and 95: 13 Investment in Subsidiary Compani
Page 96 and 97: 14 Non-current Assets - Property, P
Page 98 and 99: 15 Non-current Assets - Intangible
Page 100 and 101: 15 Non-current Assets - Intangible
Page 102 and 103: 20 Leases At balance date the Group
Page 104 and 105: 21 Contributed Equity (continued) C
Page 106 and 107: 23 Related Parties (continued) Tran
Page 108 and 109: 25 Share-based Payment Plans (conti
Page 110 and 111: 30 Abnormal Items During the year t
Page 112 and 113: of Directors’ financial Responsib
Page 114 and 115: Donations and Auditors’ Fees Dona
Page 116 and 117: Interests Register The following en
Page 118: Glossary Air & Ocean C&F EBIT EBITA
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Annual Report 2013 - Mainfreight

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