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122 Unilever Annual Report and Accounts 2012Financial statements
NOTES TO THE ONSOLIDATED FINANIAL STATEMENTS UNILEVER ROUP continued
17A Fnancal assets
The Group’s treasury function aims to protect the Group’s financial investments, while maximising returns. The Group’s cash resources
and other financial assets are shown below.
Fnancal assets(a)
 mllon
urrent
2012
 mllon
Non-
current
2012
 mllon
Total
2012
€ million
Current
2011
€ million
Non-
current
2011
€ million
Total
2011
ash and cash equvalents
Cash at bank and in hand 831 –831 1,139 –1,139
Short-term deposits with maturity of less than 3 months 1,495 –1,495 2,243 –2,243
Other cash equivalents(b) 139 –139 102 –102
2,465 –2,465 3,484 –3,484
Other fnancal assets
Held-to-maturity investments 26 3 29 – – –
Loans and receivables(c) 213930 2932
Available-for-sale financial assets(d) 183 504 687 307 413 720
Financial assets at fair value through profit or loss:
Derivatives 170 –170 208 –208
Other 20 27 47 863 71
401 535 936 1,453 478 1,931
Total 2,866 535 3,401 4,937 478 5,415
(a) For the purposes of notes 15C and 17A, financial assets and liabilities exclude trade and other current receivables and liabilities which are covered in notes
13 and 14 respectively.
(b) Other cash equivalents include investments in money market funds of €20 million (2011: €20 million) and investments in treasury bills of €67 million
(2011: €nil) for which the risk of changes in value is insignificant.
(c) Current loans and receivables include short-term deposits with banks with maturities of longer than three months.
(d) Current available-for-sale financial assets include government securities and A-minus or higher rated money and capital market instruments.
Also included are investments in money market funds of €104 million (2011: €116 million) for which the risk of changes in value is insignificant.
Non-current available-for-sale financial assets predominantly consist of investments in a number of companies and financial institutions in Europe
and the US, including €98 million (2011: €110 million) of assets in a trust to fund benefit obligations in the US (see also note 4B on page 99).
ash and cash equvalents reconclaton to the cash flow statement
 mllon
2012
€ million
2011
Cash and cash equivalents per balance sheet 2,465 3,484
Less: bank overdrafts (248) (506)
Cash and cash equivalents per cash flow statement 2,217 2,978
17B redt rsk
Credit risk is the risk of financial loss to the Group if a customer or counter-party fails to meet its contractual obligations. Additional
information in relation to credit risk on trade receivables is given in note 13. These risks are generally managed by local controllers.
Credit risk related to the use of treasury instruments is managed on a Group basis. This risk arises from transactions with financial
institutions involving cash and cash equivalents, deposits and derivative financial instruments. To reduce this risk, Unilever has
concentrated its main activities with a limited number of counter-parties which have secure credit ratings. Individual risk limits are
set for each counter-party based on financial position, credit rating and past experience. Credit limits and concentration of exposures
are actively monitored by the Group’s treasury department. Netting agreements are also put in place with Unilever’s principal counter-
parties. In the case of a default, these arrangements would allow Unilever to net assets and liabilities across transactions
with that counter-party. To further reduce the Group’s creditexposures on derivative financial instruments, Unilever has collateral
agreements with Unilever’s principal counter-parties in relation to derivative financial instruments. Under these arrangements,
counter-parties are required to deposit securities and/or cash as a collateral for their obligations in respect of derivative financial
instruments. At 31 December 2012 the collateral held by Unilever under such arrangements amounted to€6 million (2011:€88 million),
of which €6 million (2011: €43 million) was in cash, and €nil (2011: €45 million) was in the form of bond securities. The non-cash
collateral has not been recognised as an asset in the Group’s balance sheet.
Further details in relation to the Group’s exposure to credit risk are shown in note 13 and note 16A.