BOC Report and accounts 2005 - Alle jaarverslagen

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120 The BOC Group plc Annual report and accounts 2005 Notes to the financial statements 20. Net borrowings and finance leases continued c) Short-term interest rates The average interest rate on commercial paper for the year to 30 September 2005 was 4.4 per cent (2004: 3.3 per cent) and on other short-term borrowings was 8.2 per cent (2004: 9.3 per cent). d) Facilities The Group maintains a number of short and medium-term committed lines of credit.The main medium-term facilities are multi-currency agreements with a group of relationship banks, under which the Group may borrow up to US$450 million (£254 million) (2004: US$450 million (£249 million)) for general corporate purposes.These facilities were undrawn both at 30 September 2005 and 30 September 2004.The following table shows the maturity profile of these facilities. 2005 2004 $ million $ million Four to five years – – Three to four years – 450.0 Two to three years 450.0 – One to two years – – Within one year – – 450.0 450.0 In October 2005, these facilities were replaced with US$600 million (£339 million) of committed multi-currency facilities maturing in 2010. Additional committed facilities are maintained by the principal operating units in the Group. e) Security The secured loans, maturing between 30 September 2005 and 2019, are principally secured by charges over the property, plant and machinery, stocks and trade debtors of certain overseas subsidiaries. 21. Financial instruments a) Interest rate, currency and counterparty exposure The Group’s approach to managing currency and interest rate risk and its use of swaps in that process is described on page 56 in the financial review under the heading ‘management of financial risks’. Interest rate swaps At 30 September 2005, the Group had entered into five interest rate swap agreements (2004: five) with its main relationship banks with notional principal amounts of £286.4 million (2004: £285.3 million).The swaps’ underlying currencies are sterling, US dollars and Japanese yen.The following table shows the maturity profile and weighted average interest rates payable and receivable on interest rate swaps at 30 September: 2005 2004 Maturity profile £ million £ million Beyond five years – – Four to five years – 200.0 Three to four years 200.0 85.3 Two to three years 86.4 – One to two years – – Within one year – – 286.4 285.3 % % Weighted average receivable swap rate 4.1 3.8 Weighted average payable swap rate 4.8 4.5 The weighted average receivable/payable swap interest rate is calculated by applying the notional swap interest received or paid, using rates applicable at the financial year end, to the notional principal of outstanding swaps at the financial year end. During 2004, the Group also entered into four interest rate swap agreements that are due to commence in 2006 and 2007 for a period of five years. The notional principal amounts of these swaps are £106.4 million and their underlying currencies are US dollars and Japanese yen.
Notes to the financial statements 121 21. Financial instruments continued Currency swaps At 30 September 2005, the Group had entered into 12 currency swap agreements (2004: 25) with its main relationship banks with notional principal amounts of £341.7 million (2004: £593.1 million).The maturity dates range between one month and 36 months from the balance sheet date (2004: between one month and 48 months).The following table illustrates the impact of the currency swaps on the Group’s net debt at 30 September: 2005 2004 Net Net Cash at borrowings borrowings Capital Gross bank and Currency and finance Capital and finance employed borrowings in hand swaps leases employed leases £ million £ million £ million £ million £ million £ million £ million Sterling 552.7 (505.5) 38.4 313.9 (153.2) 593.6 (104.6) US dollar 1,034.8 (154.9) 30.4 (123.0) (247.5) 918.9 (352.4) Australian dollar 317.7 (6.7) 15.2 (99.1) (90.6) 298.7 (76.0) South African rand 182.1 (46.6) 14.7 – (31.9) 314.0 (99.6) Japanese yen 168.1 (179.0) 12.1 23.5 (143.4) 186.7 (154.1) Canadian dollar 121.2 (5.8) 1.3 (39.0) (43.5) 104.2 (40.0) Thai baht 105.4 (35.8) 1.8 – (34.0) 121.0 (52.0) Other 802.4 (96.4) 77.1 (76.3) (95.6) 683.3 (83.7) Total 3,284.4 (1,030.7) 191.0 – (839.7) 3,220.4 (962.4) The weighted average receivable interest rate on currency swaps was 4.4 per cent (2004: 3.9 per cent) and the weighted average payable interest rate was 4.3 per cent (2004: 4.1 per cent).The weighted average receivable/payable swap interest rate is calculated by applying the notional swap interest received or paid, using rates applicable at the financial year end, to the notional principal of outstanding swaps at the financial year end. The currency and interest rate exposure of the net borrowings of the Group at 30 September, after taking into account interest rate and currency swaps entered into by the Group, is given in the table below. 2005 2004 Fixed rate Floating rate Total Fixed rate Floating rate Total £ million £ million £ million £ million £ million £ million Sterling 297.9 (144.7) 153.2 296.8 (192.2) 104.6 US dollar 222.8 24.7 247.5 279.1 73.3 352.4 Australian dollar 0.2 90.4 90.6 0.1 75.9 76.0 South African rand 46.6 (14.7) 31.9 38.0 61.6 99.6 Japanese yen 125.6 17.8 143.4 151.7 2.4 154.1 Canadian dollar 25.6 17.9 43.5 22.8 17.2 40.0 Thai baht 35.8 (1.8) 34.0 54.9 (2.9) 52.0 Other 48.6 47.0 95.6 44.4 39.3 83.7 Total 803.1 36.6 839.7 887.8 74.6 962.4 Counterparty risk The Group is exposed to credit-related losses in the event of non-performance by counterparties to financial instruments, but does not expect any counterparties to fail to meet their obligations.There are procedures and policies in place limiting the Group’s exposure to concentrations of credit or country risk.
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BOC Report and accounts 2005
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01 The BOC Group plc is a public li
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Financial highlights 03 Dividends p
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Chairman’s statement 05 Conduct a
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Chief executive’s review 07 Indus
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Board of directors 09 08 09 10 11 1
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Executive management board 11 09 10
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Group five year record 13 Capital e
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Group profile 15 Analysis of result
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Group profile 17 Principal industri
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Group profile 19 In China, signific
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Group profile 21 Sales opportunitie
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Employees 23 At 30 September 2005 t
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Employees 25 Retirement benefit pla
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Research, development and informati
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Risk factors 39 BOC relies on devel
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Operating review 41 Exceptional ite
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Operating review (comparing 2005 wi
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Financial review 55 Net debt/equity
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Financial review 57 The balance she
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Financial review 59 Manganese litig
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Financial review 61 Current asset p
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Financial review 63 Average exchang
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Corporate governance 65 During the
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Corporate governance 67 Performance
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Page 75 and 76: Report on remuneration 73 Variable
Page 77 and 78: Report on remuneration 75 Current m
Page 79 and 80: Report on remuneration 77 Individua
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Page 85 and 86: Report on remuneration 83 Mr Médor
Page 87 and 88: Report by the independent auditors
Page 89 and 90: Group balance sheet At 30 September
Page 91 and 92: Total recognised gains and losses Y
Page 93 and 94: Accounting policies 91 General •
Page 95 and 96: Notes to the financial statements 9
Page 121: Notes to the financial statements 1
Page 141 and 142: Group undertakings 139 Principal Gr
Page 143 and 144: Shareholder information 141 The tab
Page 145 and 146: Shareholder information 143 Taxatio
Page 147 and 148: Shareholder information 145 Payment
Page 149 and 150: Glossary of terms 147 Terms used in
Page 151 and 152: ©The BOC Group plc 2005. Designed
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BOC Report and accounts 2005 - Alle jaarverslagen

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