MICHELIN - 2008 ANNUAL REPORT
MICHELIN - 2008 ANNUAL REPORT
MICHELIN - 2008 ANNUAL REPORT
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4.2. FINANCIAL RISK FACTS AND FIGURES<br />
4.2.1. Liquidity Risk<br />
The Group’s liquidity position can be analyzed as follows:<br />
(in EUR million) 31 December <strong>2008</strong> 31 December 2007<br />
Financial liabilities (note 25) 4,886 4,070<br />
– less, liability derivative instruments (notes 16 and 25) (38) (24)<br />
Financial liabilities excluding derivative instruments 4,848 4,046<br />
– including current debt<br />
1,436 1,122<br />
– including non–current debt 3,412 2,924<br />
Cash and cash equivalents (note 23) (456) (330)<br />
Undrawn, confirmed credit lines (more than 1 year) 1,397 1,753<br />
The schedule of non-current financial debt and undrawn credit lines breaks down as follows:<br />
The difference in cost between carrying a treasury surplus and<br />
the present level of commissions on confirmed credit lines is to<br />
prefer confirmed credit line-based financing.<br />
In order to meet its short term commitments, notably a bond<br />
issue of EUR 470 million coming to maturity in april 2009, the<br />
Group has sufficient committed credit lines at 31 December <strong>2008</strong><br />
and has moreover, put into place a bridge loan for an amount<br />
of EUR 480 million in January 2009 with a maturity date of<br />
31 December 2009.<br />
(in EUR million) 31 December <strong>2008</strong> 31 December 2007<br />
2015 and<br />
2010 2011 2012 2013 2014<br />
2009 2010 2011 2012 2013<br />
more (*)<br />
2014 and<br />
more (*)<br />
Non-current financial liabilities 786 66 878 596 14 1,072 620 355 16 512 281 1,141<br />
Long-term undrawn credit lines 115 – 1,182 100 – – 6 247 – 1,500 – –<br />
(*) Includes the lowest ranking subordinated notes issued by CGEM in 2003 and redeemable in cash (TSDR) for an amount of EUR 353 million, which have a reimbursement date in December 2033. However CGEM is entitled, at its discretion,<br />
to redeem early all the notes in cash at par in December 2013, and thereafter every three months after this date until the maturity date of the notes in December 2033.<br />
Michelin at a Glance<br />
The Managing Partners’ Report<br />
Consolidated Financial Statements<br />
4.2.2. Currency Risk<br />
Transaction Currency Risk<br />
The following tables set forth the Group’s transactional exchange positions (when a monetary asset or liability is denominated in a currency other than the company’s functional currency), before and<br />
after hedging.<br />
(in EUR million) 31 December <strong>2008</strong> 31 December 2007<br />
USD CNY THB GBP EUR Other USD CNY THB GBP EUR Other<br />
Monetary assets 3,385 41 3 69 8,045 1,780 3,568 25 5 54 8,159 1,848<br />
Monetary liabilities (2,726) – (23) (21) (8,442) (1,143) (2,381) – (1) (71) (9,280) (1,176)<br />
Net position before<br />
hedging 659 41 (20) 48 (397) 637 1,187 25 4 (17) (1,121) 672<br />
Hedges (754) (111) (1) (33) 414 (629) (1,154) – – 25 1,011 (638)<br />
Net position after hedging (95) (70) (21) 15 17 8 33 25 4 8 (110) 34<br />
A decrease in the value of the Euro against all other currencies would represent a negative aggregate impact of EUR 2 million (2007: EUR 1 million) in the consolidated income statement, after hedging,<br />
for every cent change. An increase in the value of the Euro against all other currencies would represent a positive impact of EUR 2 million for every cent change (2007: EUR 1 million).<br />
Additional Information<br />
Other Information<br />
<strong>2008</strong> Consolidated Financial Statements of Michelin Group 97
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