Unilever 2009 Annual Report Download - page 108

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Unilever Annual Report and Accounts 2009 105
15 Financial instruments and treasury risk management (continued)
Liquidity risk
A material and sustained shortfall in our cash flow could undermine our credit rating and overall investor confidence and could restrict the Group’s
ability to raise funds.
Operational cash flow provides the funds to service the financing of financial liabilities and enhance shareholder return. Unilever manages the
liquidity requirements by the use of short-term and long-term cash flow forecasts. Unilever maintains access to global debt markets through an
infrastructure of short-term and long-term debt programmes. In addition to this, Unilever has committed credit facilities in place to support its
commercial paper programmes and for general corporate purposes. During 2009 we did not utilise the committed facilities.
Unilever had US $6,050 million of undrawn committed facilities on 31 December 2009 as follows:
• revolving 364-day bilateral credit facilities of in aggregate US $5,285 million (2008: US $4,230million) out of which US $5,285 million
(2008: US $3,675 million) with a 364-day term out; and
• 364-day bilateral money market commitments of in aggregate US $765 million (2008: US $1,775 million), under which the underwriting banks
agree, subject to certain conditions, to subscribe for notes with maturities of up to three years.
Revolving 364-day notes commitments of US $200 million at 31 December 2008 were converted during 2009 into the revolving 364-day bilateral
credit facilities, and were therefore nil at 31 December 2009.
As part of the regular annual process these facilities will be renewed in 2010.
The following table shows Unilever’s contractually agreed (undiscounted) cash flows payable under financial liabilities and derivative assets and
liabilities as at the balance sheet date:
€ million € million € million € million € million € million € million € million
Net
carrying
Due Due Due Due amount as
Due between between between between Due shown in
within 1 and 2 and 3 and 4 and after balance
Undiscounted cash flows 1 year 2 years 3 years 4 years 5 years 5 years Total sheet
2009
Non-derivative financial liabilities:
Financial liabilities excluding related derivatives
and finance lease creditors (2,167) (817) (1,317) (1,088) (928) (3,347) (9,664) (9,652)
Interest on financial liabilities (411) (315) (299) (248) (201) (1,669) (3,143)
Finance lease creditors including related finance cost (34) (28) (22) (21) (20) (244) (369) (212)
Trade payables and other liabilities
excluding social security and sundry taxes(a) (8,071) (248) ––––(8,319) (8,319)
Issued financial guarantees (48) –––––(48)
(10,731) (1,408) (1,638) (1,357) (1,149) (5,260) (21,543)
Derivative financial liabilities:
Interest rate derivatives:
Derivative contracts – receipts 66 64 62 23 – – 215
Derivative contracts – payments (70) (68) (68) (24) – – (230)
Foreign exchange derivatives:
Derivative contracts – receipts 6,138 6 ––––6,144
Derivative contracts – payments (6,265) (7) ––––(6,272)
(131) (5) (6) (1) – – (143) (143)(b)
31 December (10,862) (1,413) (1,644) (1,358) (1,149) (5,260) (21,686)
(a) See note 16 on page 110.
(b) Includes financial liability-related derivatives amounting to €(107) million (2008: €(219) million).