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Currency transaction risk, excluding interest-bearing financing
The currency transaction risk for Group companies resulting from future operational transactions in
currencies other than their functional currency, can be summarized as follows:
2016
2015
Expected cash flows in US dollars
133,703
198,598
Expected cash flows in Australian dollars
- 13,043
- 31,478
Expected cash flows in pounds sterling
42,204
- 10,548
Expected cash flows in Indonesian rupiah
-
70,440
Expected cash flows in Swedish kronor
14,306
21,845
Expected cash flows in euros
- 115,604
- 38,841
Expected cash flows in other currencies
8,343
13,136
Expected cash flows
69,909
223,152
Cash flow hedges
- 77,176
- 194,211
Net position
- 7,267
28,941
Sensitivity analysis
Due to the fact that expected future cash flows in foreign currencies are hedged, the sensitivity to foreign
currency risk for financial instruments, excluding interest-bearing financing, is limited for the Group. The
Group is mainly funded by loans denominated in euros and in US dollars, as well as US private placements
denominated in US dollars and pounds sterling
(see note 24 ‘Interest-bearing borrowings’). To a large
extent the private placements in US dollars and the full amount expressed in pound sterling is swapped into
euros by means of cross-currency swaps. The other part of the US private placements expressed in
US dollars and the other US dollar financing is used to hedge, in part, the net investment in Dockwise and
Fairmount, including the intercompany financing provided. Therefore, and due in part to hedge accounting,
the sensitivity in the profit and loss account is limited for financing in currencies other than the euro.
Interest rate risk
The Group has mainly fixed interest rate liabilities and a revolving multi-currency facility with a variable
interest rates. With a view to controlling interest risks, in principle the policy is that interest rates for loans
payable are primarily fixed for the entire maturity period. This is achieved by contracting loans that carry a
fixed interest rate and/or by using derivatives such as interest rate swaps.
The interest rates and maturity profiles of interest-bearing loans, deposits and cash and cash equivalents are
stated below:
As at 31 December 2016
Interest rate One year or less
1 - 5 years
Over 5 years
Total
Cash and cash equivalents
0.00%
839,395
-
-
839,395
Short-term deposits
0.35%
125,936
-
-
125,936
US Private Placements (USD)
4.16%
- 437,931
-
- 306,876
- 744,807
US Private Placements (GBP)
5.19%
- 14,920
-
-
- 14,920
Other interest-bearing loans
3.40%
- 293
- 1,411
-
- 1,704
Bank overdrafts
1.76%
- 1,188
-
-
- 1,188
510,999
- 1,411
- 306,876
202,712
As at 31 December 2015
Interest rate One year or less
1 - 5 years
Over 5 years
Total
Cash and cash equivalents
0.00%
695,531
-
-
695,531
Short-term deposits
0.91%
98,189
-
-
98,189
US Private Placements (USD)
4.16%
-
- 351,787
- 344,887
- 696,674
US Private Placements (GBP)
5.19%
-
- 14,901
-
- 14,901
Revolving multi-currency credit facility
(USD)
0.88%
-
- 196,897
-
- 196,897
Other interest-bearing loans
1.47%
- 18,127
- 5,762
-
- 23,889
Bank overdrafts
0.13%
- 30,603
-
-
- 30,603
744,990
- 569,347
- 344,887
- 169,244
115
ANNUAL REPORT 2016 – BOSKALIS