Cathay Pacific 2002 Annual Report Download - page 20

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Cathay Pacific Airways Limited Annual Report 2002 17
Financial Review
Borrowings and capital
•Borrowings decreased by 5.1% to HK$22,810
million compared with HK$24,024 million
in 2001.
•Borrowings are mainly denominated in US
dollar, Japanese yen, Sterling and Euro, and are
fully repayable by 2017 with 71% at fixed rates
of interest.
•Liquid funds, 83% of which are denominated
in US dollar, increased by 35% to
HK$13,180 million.
•Net borrowings decreased by 32.4% to
HK$9,646 million.
•The Group’s shareholders’ funds increased by
2.6% to HK$32,115 million.
•Net debt/equity ratio decreased from 0.46 times
to 0.30 times.
Financial risk management policy
•In the normal course of business, the Group is
exposed to fluctuations in foreign currencies,
interest rates and jet fuel prices.
•These exposures are managed, sometimes with
the use of derivative financial instruments, by
the Treasury Department of Cathay Pacific in
accordance with the Group’s approved policies
and parameters.
•Derivative financial instruments are used solely
for financial risk management purposes and the
Group does not hold or issue derivative financial
instruments for trading purposes.
•Derivative financial instruments which constitute
a hedge do not expose the Group to market
risk since any change in their market value will
be offset by a compensating change in the
market value of the asset, liability or transaction
being hedged.
0
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0201009998
Group net debt and equity
Net debt/equity ratio
Shareholders’ funds
Net borrowings
HK$ million Times
Group maturity profile
by currency: borrowings
Within 1 year
Between 1-2 years
Between 2-5 years
Over 5 years
Others include AUD, CAD, KRW,
NZD, SGD and TWD.
HK$ million
HKD JPY USD OthersGBPEUR