Full RSDB annual report for 2008 - Roto Smeets Group
Full RSDB annual report for 2008 - Roto Smeets Group
Full RSDB annual report for 2008 - Roto Smeets Group
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21. Other receivables / prepayments<br />
(x € 1,000) <strong>2008</strong> 2007<br />
Other receivables 9,737 9,347<br />
Billable 6,830 8,425<br />
Prepayments 940 1,209<br />
Balance as at December 31 17,507 18,981<br />
22. Financial derivatives<br />
The main risks to which <strong>RSDB</strong> is subjected to is <strong>for</strong>med by the liquidity and the market risk (consisting of an interest rate<br />
risk, a currency risk and a price risk). The financial policy of <strong>RSDB</strong> is aimed, in the short term, at restricting the effects of<br />
exchange rate and interest rate fluctuations and in the longer term to follow market exchange and interest rates.<br />
<strong>RSDB</strong> uses financial derivative products to control the risks connected to the operating activities, whereby no speculative<br />
positions are taken with these financial derivative products.<br />
The company uses various financial instruments in order to limit currency and interest rate risks. For currency risks,<br />
it uses FX cylinder contracts which consist of a combination of an FX call option and an FX put option. The company<br />
also uses FX Window Forward Extra contracts, a combination of an FX call option and an FX put option with an agreed<br />
‘trigger’. When this trigger occurs in the agreed period, the FX Window Forward Extra changes into a currency future<br />
transaction with an agreed price.<br />
RATE SWAPS<br />
To cover the interst rate risk of the variable rate financing interest rate swaps are used whereby <strong>RSDB</strong> has committed<br />
itself to settle the difference between the 3-months interbank rate and agreed interest rates at moments agreed in<br />
advance.<br />
To cover the interest rate risk of the variable coupon financing an interest rate swap contract of € 10 million was entered<br />
into. The contract is based on a fixed 4.08% rate on the basis of a 3-months Euribor, ending January 2, 2012. No hedge<br />
accounting will be applied.<br />
The rate swap contracts entered into as at December 31, <strong>2008</strong> are specified as follows:<br />
(x € 1,000) <strong>2008</strong> expiration 3-months<br />
interest<br />
market value<br />
<strong>2008</strong><br />
10,000 January 2, 2012 4.08% - 374<br />
(x € 1,000) 2007 expiration 3-months<br />
interest<br />
market value<br />
2007<br />
10,000 January 2, 2012 4.08% 135<br />
<strong>RSDB</strong> Annual Report <strong>2008</strong> 71
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