Reebok 2010 Annual Report Download - page 153

Group Management Report – Financial Review Group Business Performance Treasury 149
Remaining time to maturity of gross borrowings
€ in millions
2010 2009
Total 1,610 1,767
53
< 1 year ..........................273
1 to 3 years .......................514
3 to 5 years .......................711
> 5 years .........................112
198
561
822
186
Financial leverage
in %
1) Including Reebok, Rockport and Reebok-CCM Hockey from February 1, 2006
onwards.
51
2006 1 )
2007
2008
2009
2010
78.9
58.4
64.6
24.3
4.8
Financing structure 1 )
€ in millions
2010 2009
Cash and short-term financial assets 1,389 850
Bank borrowings 95 103
Commercial paper 0 0
Private placements 1,017 1,166
Eurobond 498 498
Gross total borrowings 1,610 1,767
Net borrowings 221 917
1) Rounding differences may arise in totals.
50 Issued bonds at a glance
in millions
Issued bonds Volume Coupon Maturity
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 30 variable 2010 – 2012
52
Currency management a key priority
Due to the Group’s global activities,
currency 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. 106. In 2010, the
Group Treasury department managed
a net deficit of around US $ 2.1 billion
against the euro (2009: US $ 1.9 billion).
As governed by 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 2011
and we have already started hedging our
exposure for 2012. The rates for 2011
are slightly less favourable compared to
those of 2010. 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
favourable exchange rate developments
see Risk and Opportunity Report, p. 158.