Financial risk management principles


Liquidity risk

  • Cash, cash equivalents and commited credit facilities cover at least 110 % of short term debt
  • MEUR 300 committed revolving credit facility (RFC)
  • MEUR 90 overdraft facilities
  • Continuous cash flow forecasting


Refinancing risk

  • Refinancing in any given year less than 30 % of total debt
  • Even maturity profile
  • Diversified funding sources
  • Strong credit rating from at least two major rating agencies


Credit and counterparty risk

  • Prequalification of suppliers based on pretermined financial criteria
  • Continuous credit risk analysis and monitoring
  • Counterparty credit rating requirements and limits
  • ISDAs in force for derivatives


Market price risk

  • Derivatives only for hedging purposes
  • Interest rate risk hedging of debt; convergence towards 12 months' average interest re-fixing time
  • Material currency and commodity risk fully hedged
  • Loss power hedging horizon up to 4 years, target to fully hedge the delivery year