Financial risk management principles

 

Liquidity risk

  • Cash, cash equivalents and commited credit facilities cover at least 110 % of short term debt
  • Undrawn MEUR 300 revolving credit facility (RFC)
  • 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 5 years, 12 months fully hedged