Reebok 2009 Annual Report Download - page 135

GROUP MANAGEMENT REPORT – FINANCIAL REVIEW GROUP BUSINESS PERFORMANCE Treasury 131
Currency management a key priority
Due to the Group’s global activity, cur-
rency management is a key focus of the
Group’s Treasury department. Hedging
US dollars is a central part of our
programme. This is a direct result of
our Asian-dominated sourcing, which
is largely denominated in US dollars
see Global Operations, p. 88. In 2009, the
Group Treasury department managed
a net deficit of around US $ 1.9 billion
against the euro (2008: US $ 1.9 billion).
As outlined in our Group’s Treasury
Policy, we have established a rolling
12- to 24-month hedging system, under
which the vast majority of the anticipated
seasonal hedging volume is secured six
months prior to the start of a season.
As a result, we have almost completed
our anticipated hedging needs for 2010
and we have already started to hedge
our exposure for 2011 and to a minor
degree for 2012. The rates for 2010 are
slightly less favourable compared to
those of 2009. The use or combination of
different hedging instruments, such as
forward contracts, currency options and
swaps protects us against unfavourable
currency movements, while retaining the
potential to benefit from future favour-
able exchange rate developments see
Risk and Opportunity Report, p. 140.
N °-
53
FINANCIAL LEVERAGE
IN %
2005
2006 1 )
2007
2008
2009
(20.5)
78.9
58.4
64.6
24.3
1) Including Reebok, Rockport and Reebok-CCM Hockey from February 1, 2006
onwards.
N °-
52
FINANCING STRUCTURE 1 )
€ IN MILLIONS
2009 2008
Total cash and short-term financial assets 850 384
Bank borrowings 103 605
Private placements 1,166 1,432
Eurobond 498 0
Convertible bond 0 393
Commercial paper 0 143
Gross total borrowings 1,767 2,573
Net borrowings 917 2,189
1) Rounding differences may arise in totals.
N °-
55
REMAINING TIME TO MATURITY OF GROSS
BORROWINGS € IN MILLIONS
2009 2008
Total 1,767 2,573
< 1 year ...................................................................198 462
797
1,080
234
1 to 3 years .............................................................561
> 5 years .................................................................186
3 to 5 years .............................................................822
N °-
54
ISSUED PRIVATE PLACEMENTS AND BONDS
AT A GLANCE IN MILLIONS
Issued Bonds Volume Coupon Maturity
Asian private placement EUR 26 variable 2010
Asian private placement AUD 16 variable 2010
German private placement EUR 150 fixed and
variable 2010
US private placement USD 288 fixed 2011
French private placement EUR 150 variable 2011 – 2012
German private placement EUR 78 fixed and
variable 2012
US private placement USD 292 fixed 2013
Eurobond EUR 498 fixed 2014
German private placement EUR 122 fixed and
variable 2014
US private placement USD 115 fixed 2015
US private placement USD 150 fixed 2016
Other private placements EUR 43 variable 2010 – 2012