BT 2009 Annual Report Download - page 135

Download and view the complete annual report

Please find page 135 of the 2009 BT annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 170

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170

ADDITIONAL INFORMATION FINANCIAL STATEMENTS REPORT OF THE DIRECTORS BUSINESS AND FINANCIAL REVIEWS OVERVIEW
FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
133BT GROUP PLC ANNUAL REPORT & FORM 20-F
FINANCIAL STATEMENTS
The group has a European Medium Term Note programme and a US Shelf registration in place of which €3.9bn and $6.9bn, respectively,
have been utilised. During the 2009 and 2008 financial years the group issued commercial paper and held cash, cash equivalents and
current asset investments in order to manage short-term liquidity requirements. At 31 March 2009, the group had an undrawn committed
borrowing facility of up to £1,500m (2008: £1,500m). The facility is available for the period to January 2013. The group had an additional
undrawn committed borrowing facility of £900m (2008: £935m), of which £800m (2008: £835m) was agreed in the 2009 financial year,
with a further £100m being agreed after the balance sheet date in both 2009 and 2008. This facility is for a term of 364 days from March
2009 with a one-year term out.
Refinancing risk is managed by limiting the amount of borrowing that matures within any specified period and having appropriate
strategies in place to manage refinancing needs as they arise. The group has no significant debt maturities until December 2010. At
31 March 2009, the group’s credit rating was BBB with a stable outlook with Standard and Poor’s, and Baa2 with negative outlook with
Moody’s (2008: BBB+/Baa1, both with stable outlook). After the balance sheet date, Fitch changed the group’s credit rating to BBB with a
stable outlook (2008: BBB+ with a stable outlook).
The group’s remaining contractually agreed cash flows, including interest, associated with financial liabilities based on undiscounted
cash flows are as follows:
Within one Between Between Between Between
Carrying year, or on one and two and three and four and After
amount demand two years three years four years five years five years
Outflow (inflow)d£m £m £m £m £m £m £m
2009
Loans and borrowings 13,907
Principal 1,227 3,098 10 1,829 14 7,412
Interest 906 900 649 650 550 5,333
Trade and other payablesa5,354 5,354 – – – – –
Provisionsb166 59 17 15 13 8 119
Derivative financial instrument liabilities
analysed based on earliest payment datec
Net settled 762 244 338 28 50 19 30
Gross settled 5
Outflow 414 113 – – – –
Inflow (409) (113) – – – –
Total 7,795 4,353 702 2,542 591 12,894
Derivative financial instrument liabilities
analysed based on holding instrument
to maturity
Net settled 762 117 117 60 60 60 634
Gross settled 5
Outflow 414 113 – – – –
Inflow (409) (113) – – – –
2008
Loans and borrowings 11,342
Principal 1,278 274 2,362 13 1,537 5,646
Interest 743 696 659 478 480 4,700
Trade and other payablesa5,828 5,828 – – – – –
Provisionsb127 31 25 16 14 13 66
Derivative financial instrument liabilities
analysed based on earliest payment datec
Net settled 446 18 101 158 19 40 47
Gross settled 626
Outflow 480 526 1,701 86 211 351
Inflow (393) (337) (1,318) (47) (147) (327)
Total 7,985 1,285 3,578 563 2,134 10,483
Derivative financial instrument liabilities
analysed based on holding instrument
to maturity
Net settled 446 18 18 18 20 20 66
Gross settled 626
Outflow 480 482 2,107 177 305 4,619
Inflow (393) (365) (1,715) (137) (263) (3,756)
aThe carrying amount excludes £1,861m (2008: £1,763m) of current and £794m (2008: £707m) of non current trade and other payables which relate to non-financial liabilities.
bThe carrying amount excludes £195m (2008: £50m) of current and £359m (2008: £169m) of non current provisions which relate to non-financial liabilities.
cCertain derivative financial instrument liabilities contain break clauses which, if exercised, require settlement of the derivative.
dForeign currency related cash flows were translated at the closing rate as at the relevant reporting date. Future variable interest rate cash flows were calculated using the most recent rate applied at the
relevant balance sheet date.
33. Financial instruments and risk management continued