Financial Statements 2009 - Manutencoop

Fair valuethe amount of the financial instruments recorded in the financial statements does not differ fromtheir fair value, including those classified as operations held for sale. this is because they are allheld for the short/medium term and settled at floating market rates.Table of financial risksthe following table shows the sensitivity of the company's pre-tax profit to reasonably foreseeablechanges in interest rates, holding constant all other variables. there is no effect on the shareholders'equity of the company.Interest-rate riskcurrent company policy for the management of costs gives preference to the use of floating-rateloans. in relation to the bnp/paribas loan, an interest-rate hedge has been arranged with a nominalvalue of euro 105 million, at a fixed rate of 2.65% for the entire duration of the contract. borrowingwas reorganised during 2009, adjusting the medium/long-term element to about 61% of the total.the carrying amount of the financial instruments exposed to interest-rate risk is analysed bymaturity in the following table:Increase/decreaseeffect on profit before taxationin thousands of euro2009 +50 bps (1,464)-30 bps 8782008 +80 bps (1,226)-30 bps 46031 deCember 2009(in thousands of Euro) Within 1 year beyond 1 year beyond 5 years totaland within 5Demand deposits and cash 15,005 15,005treasury accounts - consortiums 3,262 3,262treasury accounts - subsidiaries 73,191 73,191treasury accounts - associates and joint ventures 170 170bank overdrafts (24,617) (24,617)treasury account - parent (576) (576)treasury accounts - consortiums 0 0lease payables (408) (347) (755)Management of capital structurethe company's primary objective for the management of its capital structure is to maintain asound credit rating and appropriate capital ratios, in order to facilitate operations and maximiseshareholder value. the company manages its capital structure, taking account of changes ineconomic conditions. in order to maintain or adjust its capital structure, the company can modifythe dividends paid to shareholders, repay capital or issue new shares. the company calculates itsdebt ratio by dividing net borrowing by the total of shareholders' equity plus net borrowing. thecompany seeks to keep this ratio below 65%. the company includes the following within netborrowing: interest-bearing loans, trade and other payables, tax payables, employee severanceindemnities, and cash and cash equivalents. the above objective was met during the year ended31 December 2009.syndicated loan (21,000) (82,987) (103,987)c.c.F.s. loan 0 (30,000) (30,000)commercial paper (2,439) (2,439)Hot money (35,111) (35,111)total 7,478 (113,334) 0 (105,856)(in thousands of Euro) 31 december 2009 31 december 2008employee severance indemnities 13,021 13,455interest-bearing loans 239,285 210,484trade and other payables 216,318 219,241cash and cash equivalents (18,275) (20,462)31 deCember 2008(in thousands of Euro) Within 1 year beyond 1 year beyond 5 years totaland within 5Demand deposits and cash 14,422 14,422treasury accounts - consortiums 6,011 6,011treasury accounts - subsidiaries 65,209 65,209net payables 450,349 422,718capital 109,149 109,149reserves and retained earnings 180,849 174,195shareholders' equIty 289,998 283,344total equIty+net payables 740,347 706,062borroWIng ratIo 60.83% 59.87%treasury accounts - associates and joint ventures 170 170bank overdrafts (7,889) (7,889)treasury account - parent (29,318) (29,318)treasury accounts - consortiums (189) (189)lease payables (492) (575) (1,067)syndicated loan 0 (60,000) (15,000) (75,000)c.c.F.s. loan 0 (30,000) (30,000)commercial paper (9,667) 9,667Hot money (45,363) 45,363total (7,106) (90,575) (15,000) (2,621)108 - Financial statements as oF 31 December 2009 - principles anD explanatory notes Financial statements as oF 31 December 2009 - principles anD explanatory notes - 109