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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
• Authorizations for the corresponding investments are limited by the powers granted to the group’s senior execu-
tives and, in any event, are highly restricted (according to the amount, the Board Members, General Management
and Operations Director, Financial Director).
• Under ordinary circumstances, the longest term is three months and the investments usually offer automatically
available funds.
22.4.4. Liquidity risk
The Company’s financial structure is at a low liquidity risk, given the low level of financial leveraging and the high levels
of operating cash flows generated each year.
Liquidity risk would result from the Group having insufficient funds or access to sufficient funds at an acceptable cost to
meet its payment obligations at all times.The Group’s objective is to maintain sufficient available funds.
The Group’s policies establish the minimum liquidity levels required at all times:
• Excess liquidity may only be invested in cer tain types of assets (see previous section on credit risk/investment
activities) the liquidity of which is guaranteed.
• The amount of the Group’s revolving credit lines ensures that the Group is able to meet its operating needs as
well as finance new shor t-term investment projects. At year-end 2011, the opening credit lines total EUR 333
million. At the year end 2010, the opening credit lines total EUR 333 million. Given the difficult market situation,
these credit lines have been contracted under very competitive financial conditions, which strengthen the financial
sector’s perception that the Group is creditwor thy and sound.
22.4.5. Market risk
Given the nearly complete absence of financial debt, there are no financial risks associated with interest-rate movements.
Never theless, and for illustrative purposes, the Group has conducted a test to determine the sensitivity of the Group’s
cash surpluses to certain modifications in interest rates.
The following assumption was used: beginning with our year-end cash surpluses, and taking the 1-month Euribor at 31
December as the benchmark, we applied a variation of +100 basis points -30 basis points.
The sensitivity test shows that the impact of variations on the interest rates applied to the cash surpluses at December
31 would, in any event, not be significant and would exclusively affect the amount of financial income.
Reference Rate (%)
Cash
Surpluses
Annual
interest
100 bp
Annual
interest
-30 bp,
Annual
interest
31-12-11
1,024%
26,449
271
2,024
535
0,724
191
31-12-10
0,80%
-28,050
-219
1,782
-500
0,482
-135