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4Financial position – resultsNotes to the consolidated financial statementsCustomer credit riskIn view of the Group’s structure, customer credit risk managementis primarily carried out on a local and decentralised basis inboth Arjowiggins and Antalis. In 2006, Arjowiggins took out agroup insurance policy with Coface for all of its European subsidiariescovering domestic and export default risk in all of its hostcountries except the United States and China. Antalis’ credit riskinsurance contracts are taken out locally; it does not take out anymaterial contracts at group level, either through a Coface policyor another group credit policy.Customer credit risk is assessed at the level of each sub-groupbased on the size of each sub-group’s portfolio of trade receivables.The data in the following table is presented before the eliminationof inter-company transactions (mainly from Arjowiggins’books) and there is no material impairment of receivables or customerrisk within the Group.The Group’s policy is to classify receivables as past due when paymentis still outstanding 30 days after the invoice settlement date.Provisions for past due receivables are recorded on a case-by-casebasis taking into account past experience with the customer concernedand the amount outstanding.Statistical provisions may also be recorded for all receivables basedon their age.At 31 December 2012, the Sequana Group’s trade receivables representeda net value of €523 million compared to €558 million oneyear earlier. This corresponds to a gross amount of €557 million,less a €34 million provision for impairment in value (in 2011, theseamounts were €593 million and €35 million, respectively), representinga provision rate of 6.0% of the consolidated gross tradereceivables portfolio (6.0% in 2011). Consequently, the cost of baddebts in absolute terms was down slightly on 2011 while it remainedstable in terms of the proportion of the trade receivables portfoliotaken as a whole.(€ millions)Past dueBalance at31/12/2012 Not yet due 0-30 days 31-60 days 61-90 days > 90 daysDisputedreceivablesTrade receivables 556.9 438.7 73.2 11.2 3.8 6.4 23.6Provisions for impairment of trade receivables (33.6) – – (0.8) (3.3) (5.9) (23.6)Trade receivables, net 523.3 438.7 73.2 10.4 0.5 0.5 –Net receivables as a % of gross receivables 94.0% 100.0% 100.0% 92.9% 13.0% 7.3% 0.0%Net receivables as a % of total receivables portfolio 83.8% 14.0% 2.0% 0.1% 0.1%At 31 December 2012, 16.2% of total outstanding net receivables were past due and not covered by a provision for impairment, downfrom 18.4% at end-2011.Liquidity riskMaturities of cash flows relating to financial liabilitiesThe following table analyses the maturities of the future cash outflows for financial liabilities from the last drawdown dates, with principaland interest payments given separately. It also includes forecast cash flows from derivatives.At 31 December 2012, given the financing conditions described in Note 18b, the maturities of future cash outflows break down as follows:(€ millions) Type of financial liability Derivative instrumentsType of financial liabilityBankborrowings142 | Sequana | 2012 Document de référence (English version)Short-termborrowingsLeaseobligations Other Total Interest rate Commodity CurrencyCash flows due within one yearAccumulated interest (26.5) (0.3) (0.7) – (27.5) (0.3) – (0.3)Principal (27.5) (9.5) (4.0) (5.2) (46.2) – – –Cash flows due between one and two yearsAccumulated interest (13.2) – (0.6) – (13.8) (0.2) – –Principal (662.4) – (2.3) (1.7) (666.4) – – –Cash flows due between two and three yearsAccumulated interest – – (0.5) – (0.5) – – –Principal (0.8) – (2.3) – (3.1) – – –Cash flows due between three and four yearsAccumulated interest – – (0.4) – (0.4) – – –Principal – – (2.4) – (2.4) – – –Cash flows due between four and five yearsAccumulated interest – – (0.3) – (0.3) – – –Principal – – (2.5) – (2.5) – – –Cash flows due in more than five yearsAccumulated interest – – (0.3) – (0.3) – – –Principal – – (2.7) (0.1) (2.8) – – –TOTALAccumulated interest (39.7) (0.3) (2.8) – (42.8) – – –Principal (690.7) (9.5) (16.2) (7.0) (723.4) – – –