Reebok 2012 Annual Report Download - page 164

adidas Group
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2012 Annual Report
Group Management Report – Financial Review
142
2012
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03.2
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Group Business Performance
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Treasur y
43
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Total credit facilities (€ in millions)
2012 2011
Bilateral
credit facilities 1,863 2,164
Syndicated
loan facility 500 1,860
Private placements 480 655
Eurobond 499 499
Convertible bond 449 0
Total 3,791 5,178
■ 2012 ■ 2011
45
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Bilateral credit lines (€ in millions)
2012 2011
Committed 376 586
Uncommitted 1,487 1,578
Total 1,863 2,164
■ 2012 ■ 2011
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Remaining time to maturity of available facilities
(€ in millions)
2012 2011
< 1 year 2,014 4,187
1 to 3 years 714 780
3 to 5 years 1,063 211
> 5 years 00
Total 3,791 5,178
■ 2012 ■ 2011
46
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Currency split of gross borrowings (€ in millions)
2012 2011
EUR 1,004 721
USD 424 444
All others 59 115
Total 1,487 1,280
■ 2012 ■ 2011
Centralised treasury function
In accordance with our Group’s Treasury Policy, all worldwide credit lines
are directly or indirectly managed by the Group Treasury department.
Portions of those lines are allocated to the Group’s subsidiaries and
backed by adidas AG guarantees. As a result of this centralised liquidity
management, the Group is well positioned to allocate resources
efficiently throughout the organisation. The Group’s debt is generally
unsecured and may include standard financial covenants, which are
reviewed on a quarterly basis. We maintain good relations with numerous
partner banks, thereby avoiding a high dependency on any single
financial institution. Banking partners of the Group and our subsidiaries
are required to have at least a BBB+ long-term investment grade rating
by Standard & Poor’s or an equivalent rating by another leading rating
agency. Only in exceptional cases are Group companies authorised to
work with banks with a lower rating
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SEE RISK AND OPPORTUNITY REPORT,
P. 164. To ensure optimal allocation of the Group’s liquid financial
resources, subsidiaries transfer excess cash to the Group’s headquarters
in all instances where it is legally and economically feasible. In addition,
Group Treasury is currently rolling out a global standardisation and
consolidation of cash management and payment processes, including
the set-up of automated, cross-border cash pools and a payment factory.
This implementation is scheduled to be completed by the end of 2013.
Group financial flexibility
The adidas Group’s financial flexibility is ensured by the availability of
unutilised credit facilities in an amount of € 2.304 billion at the end of 2012
(2011: € 3.898 billion). These include a newly committed syndicated loan
facility of € 500 million as well as bilateral credit lines at different banks
in an amount of € 1.804 billion (2011: € 2.038 billion). The syndicated
loan facility replaced a syndicated loan facility of € 1.860 billion, which
matured in 2012. It has a remaining time to maturity of five years and
incorporates two one-year extension options. The size of the syndicated
loan facility was reduced as a result of the Group’s strong financial
position as well as our desire to rationalise increasingly expensive
bank credit facilities. We monitor the ongoing need for available credit
lines based on the current level of debt as well as future financing
requirements.
Bilateral credit lines decrease
At the end of 2012, bilateral credit lines declined 14% to € 1.863 billion
compared to € 2.164 billion in the prior year. Credit lines decreased in
line with lower financing needs and growing cash surpluses. Committed
and uncommitted credit lines represent approximately 20% and 80%
of total short-term bilateral credit lines, respectively (2011: 27% and
73%)
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DIAGRAM 45.