Page 186 - MEDIASET ESPAÑA / 2013. Financial Statements, Management and Corporate Governance Report

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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
NOTES TOTHE CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2013
(Expressed in thousand of euros)
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 to conduct its
business.
The Group’s policies establish the minimum liquidity levels required at all times:
• Excess liquidity may only be invested in certain 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 short-term investment projects. At year-end 2013, the opening credit lines total 360 million euros
(2012: total 345 million euros). 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 creditworthy 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.
Nevertheless, 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
December 31, as the benchmark, we applied a variation of +100 basis points -10 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 b.p. Annual
interest -10 b.p. Annual
interest
12/31/13 0.221% 93,477 207 1.221% 1,141 0.121% 113
12/31/12 0.109% 73,716 80 1.109 818 0.009 7