Financial Statements - Solvay

Fair value of fi nancial debts
For fl oating rate fi nancial debts, the fair value is equal to the face value (see also note 31). The fair value of the Group’s
fi xed rate debt at the end of 2008 is as follows:
• EMTN EUR 500 million 2014: EUR 501 million,
• EMTN EUR 500 million 2018: EUR 474 million,
• Hybrid EUR 500 million 2104: EUR 372 million.
The fair value is based on the quoted market price at the end of 2008.
Cash and cash equivalents
Cash and cash equivalents amounted to EUR 883 million, up by EUR 308 million from end-2007, mainly because the Group
secured EUR 455 million of funding using its Belgian Treasury Bill program, thereby reducing its liquidity risk at year-end.
EUR Million 2007 2008
Shares 3 20
Fixed-income securities 33 11
Term deposits 245 239
Cash 294 613
Cash and cash equivalents 575 883
The shares mentioned in the above table consist of investments in money market funds. The carrying amount is the fair
value of the shares, fi xed income securities and term deposits.
Liquidity risk
EUR Million 2007 2008
Outfl ows of cash related to fi nancial liabilities: 4 162 5 095
on demand or within one year 2 597 3 242
in year two 43 47
in years three to fi ve 104 320
beyond fi ve years 1 418 1 486
The above table gives the nominal amount repayable, undiscounted, and due at maturity. The Group staggers
the maturities of its fi nancing sources over time in order to minimize its liquidity risk.
In addition to the above-mentioned fi nancing sources, the Group also has access to the following instruments:
• a Belgian Treasury Bill program in an amount of EUR 1 billion, of which EUR 455 million was used at the end of 2008,
or as an alternative a US commercial paper program in an amount of USD 500 million, unused at the end of 2008.
In addition to the credit lines mentioned below, the higher ceiling of the two programs is also covered by back-up credit
lines (EUR 592 million) and a EUR 400 million bank credit line, maturing in October 2013. Both were unused at the end
of 2008;
• a EUR 850 million bank credit line (unused at end-2008), maturing in 2011.
The liquidity risk management is described in the “management of risks” section.
Financial
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Solvay Global Annual Report 2008
Financial