Tiscali 2008 Annual Report Download - page 96

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(EUR 000) Increase/decrease Effect on profit Effect
in percentage net of on equity
points GBP taxes
2008 +5%2059
-5% (15) (58)
2007 +5% 3 47
-5% (3) (52)
Risk management linked with interest rates
The Tiscali Group is exposed to the risk of fluctuations in the
interest rate since its outstanding financial debt is mainly floating
rate. At 31 December 2008, the net financial debt came to
EUR 616.4 million, entirely floating rate. The Tiscali Group puts
together transactions hedging the interest rate risk by means
of interest rate swap contracts. At 31 December 2008, such
hedging concerned EUR 262.5 million in medium/long-term
floating rate bank debt. The net debt at 31 December 2008
amounted to EUR 490.7 million.
In the event of a rise in the interest rates, the following could
increase: (i) the financial charges payable by the Company
relating to part of the debt not hedged and (ii) the costs of any
refinancing of the debt, with possible negative effects on the
assets and on the economic, equity and financial situation of
the Group companies.
If the interest rates changed by more or less 50 basis points, and
all the other variables remained the same, interest for the Group
for the year ended 31 December 2008 would have
increased/decreased by around EUR 0.8 million. The analysis is
carried out on the portion of debt not hedged by IRS agreements.
Handling of the liquidity risk
The following tables consider the maturity of the financial
investments for the next five years with indication in particular of
the amounts to be paid to the leading banks during 2009.
95
CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES
31 December 2008 Book value Outgoing cash flows Less than 1 year Between 1 and 5 years More than 5 years
EUR (000)
Secured bank loans 490,767 719,221 109,286 186,623 427,312
Convertible notes-----
Unsecured bank facility 30,743 44,522 515 44,007
Trade and other payables 396,384 418,949 312,097 87,817- 19,034-
Bank overdraft 19,245 19,245 19,245 - -
31 December 2007 Book value Outgoing cash flows Less than 1 year Between 1 and 5 years More than 5 years
EUR (000)
Secured bank loans 596,700 906,031 203,509 227,283 475,238-
Convertible notes 43,842 80,250 80,250
Unsecured bank facility 33,669 33,669 - 3,583 30,085
Trade and other payables 389,253 389,253 389,253 - -
Bank overdraft 25,973 25,974 25,974 - -