Annual Report

Notes to Group Financial Statements
HUBER+SUHNER Annual Report 2010 · Part 2
The credit risk for trade receivables is limited by the wide product and geographical distribution of customers. In addition,
these risks are reduced to a minimum by regular checks of credit-worthiness, advance payments, letters of credit
or other instruments. For anticipated losses of trade receivables allowances are recognised. The effective losses of trade
receivables are < 0.05% (see also note 21).
Liquidity risks
Permanent financial solvency is the highest aim of the liquidity policy of HUBER+SUHNER. The liquidity risk is therefore
monitored by the Group treasury with a cautious and future-oriented cash management. With this the Group pursues
the principle of ensuring enough liquid reserves. This includes the possibility of financing by means of available lines of
credit and the ability to obtain capital due to an issue on the capital markets.
The actual and the planned cash flows and liquidity reserves of all Group companies are recorded monthly in a rolling
liquidity forecast and reported to the Executive Group Management.
(in CHF million) 2010 2009
Cash and cash equivalents 163.2 136.1
+ Marketable securities 42.7 42.3
= Liquidity reserves 205.9 178.4
Besides the liquidity reserves consisting of cash and cash equivalents and marketable securities, the Group has access to
approved and only occasionally used lines of credit with different banks. Furthermore, HUBER+SUHNER has additional
financing potential due to the strong income and balance sheet position.
Financial liabilities and derivative financial instruments
As of 31 December 2010 Total
balance sheet
position
Less than
1 year
1–5 years After
5 years
Cash flows
Total
cash flows
Short- and long-term debt 101 – 94 7 101
Trade payables and other liabilities 81 053 80 814 – 241 81 055
Derivative financial instruments 468 468 – – 468
As of 31 December 2009 Total
balance sheet
position
Less than
1 year
1–5 years After
5 years
Cash flows
Total
cash flows
Short- and long-term debt 353 82 287 8 377
Trade payables and other liabilities 59 878 59 683 67 134 59 884
Derivative financial instruments 590 590 – – 590
The table below analyses the Group’s forward foreign exchange contracts. The amounts disclosed are the contractual
undiscounted cash flows.
As of 31 December 2010 Less than
1 year
1–5 years After
5 years
Total
cash flows
Economical cash flow hedge outflow 79 630 – – 79 630
Economical cash flow hedge inflow 80 817 – – 80 817
As of 31 December 2009 Less than
1 year
1–5 years After
5 years
Total
cash flows
Economical cash flow hedge outflow 74 789 – – 74 789
Economical cash flow hedge inflow 75 471 – – 75 471
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