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Cathay Pacific Airways Limited Annual Report 2010
89
Notes to the Accounts SUPPLEMENTARY INFORMATION
32. Financial risk management (continued)
2010
USD
HK$M
EUR
HK$M
TWD
HK$M
AUD
HK$M
RMB
HK$M
JPY
HK$M
Company
Trade and other receivables 4,879 518 287 215 171 490
Liquid funds 4,623 145 72 14 1,325 246
Long-term loans (4,142) – – – – –
Obligations under finance leases (21,397) (3,807) – – – (1,429)
Trade and other payables (2,804) (275) (55) (152) (177) (210)
Currency derivatives at notional value 35,809 (1,726) (6,072) (4,111) (9,890) (10,342)
Net exposure 16,968 (5,145) (5,768) (4,034) (8,571) (11,245)
2009
USD
HK$M
EUR
HK$M
TWD
HK$M
SGD
HK$M
RMB
HK$M
JPY
HK$M
Company
Trade and other receivables 3,460 439 233 36 134 388
Liquid funds 4,300 59 45 1,395 971 158
Long-term loans (5,174) (52) – (3,458) – –
Obligations under finance leases (21,192) (4,848) – – – (1,379)
Trade and other payables (3,126) (232) (30) (54) (76) (148)
Currency derivatives at notional value 14,553 370 (1,556) 1,235 (2,356) (6,681)
Net exposure (7,179) (4,264) (1,308) (846) (1,327) (7,662)
In addition to the current exposure shown above, the Group is exposed to a currency risk on its future net
operating cash flow in foreign currencies primarily Euros, Japanese yen, New Taiwan dollars, Australian
dollars and Renminbi. The Group currently has operating surpluses in all these foreign currencies except the
US dollars.
Sensitivity analysis for foreign currency exposure
A five percent appreciation of the Hong Kong dollars against the following currencies at 31st December
2010 would have increased profit and loss and other equity components by the amounts shown below.
This represents the translation of financial assets and liabilities and the change in fair value of currency
derivatives at the reporting date. It assumes that all other variables, in particular interest rates, remain
constant. The analysis is performed on the same basis for 2009.