Reebok 2011 Annual Report Download - page 134

adidas Group
2011 Annual Report
GROUP MANAGEMENT REPORT – FINANCIAL REVIEW
130
2011
03.2 Group Business Performance Treasury
03.2
43 Total credit facilities (€ in millions)
2011 2010
Short-term lines 2,164 2,169
Medium-term
committed lines 1,860 1,860
Private placements 655 1,017
Eurobond 499 498
Total 5,178 5,544
■ 2011 ■ 2010
45 Short-term bilateral credit lines (€ in millions)
2011 2010
Committed 586 660
Uncommitted 1,578 1,509
Total 2,164 2,169
■ 2011 ■ 2010
44 Remaining time to maturity of available facilities
(€ in millions)
2011 2010
< 1 year 4,187 2,442
1 to 3 years 780 2,279
3 to 5 years 211 711
> 5 years 0112
Total 5,178 5,544
■ 2011 ■ 2010
46 Currency split of gross borrowings (€ in millions)
2011 2010
EUR 721 879
USD 444 642
All others 115 89
Total 1,280 1,610
■ 2011 ■ 2010
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 SEE RISK AND OPPORTUNITY REPORT, P. 145 . 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.
Group financial flexibility
The adidas Group’s financial flexibility is ensured by the availability
of unutilised credit facilities in an amount of € 3.898 billion at the
end of 2011 (2010: € 3.934 billion). These include a € 1.860 billion
committed syndicated loan facility which was, as in the prior year,
not utilised at year-end (2010: € 1.860 billion unutilised) as well as
bilateral credit lines at different banks in an amount of € 2.038 billion
(2010: € 2.074 billion). The syndicated loan facility has a remaining
time to maturity of less than one year. The replacement of this facility
is planned during the course of 2012. We monitor the ongoing need
for available credit lines based on the current level of debt as well as
future financing requirements.
Short-term bilateral credit lines virtually unchanged
At the end of 2011, short-term bilateral credit lines were virtually
unchanged at € 2.164 billion compared to € 2.169 billion in the prior
year. Committed and uncommitted credit lines represent approxi-
mately 27% and 73% of total short-term bilateral credit lines, respec-
tively (2010: 30% and 70%) DIAGRAM 45 .