Annual report - HSE

provide bridge financing for the Unit 6 liabilities, the controlling company HSE as the only
stakeholder in TEŠ took out loans from commercial banks, for the purposes of the Group’s
liquidity management. As at 31 December 2012, the amount of short-term revolving loans
HSE granted to the company TEŠ totalled EUR 300.6 million, comprising proper assets
of the company HSE, assets of the Group companies and short-term loans that HSE
borrowed from commercial banks. For the purposes of managing the HSE Group liquidity
and providing bridge financing for the liabilities arising from the construction or Unit 6 in
TEŠ from commercial banks, the company HSE in 2012 managed to ensure a sufficient
short-term loans, as well as to extend their deadlines over the calendar year. Given the
circumstances on financial markets and issues that overwhelm commercial banks, we
consider the latter as a confirmation of good business reputation and confidence in our
Group on financial markets. The liquidity risk was estimated as being adequately managed
in 2012.
Maturity of the Group’s long-term liabilities in the next years is shown in the tables below:
in €
Maturity date (all outstanding)
Maturity dates of long-term liabilities Up to 2 years From 3 to 5 years Over 5 years TOTAL
as at 31/12/2011 after the date of after the date of after the date of
the statement of the statement of the statement of
financial position financial position financial position
Long-term financial liabilities to banks 37,912,325 89,670,235 280,281,076 407,863,636
Long-term financial liabilities to others 3,128,842 799,495 0 3,928,337
Long-term operating liabilities to suppliers 3,441,001 0 0 3,441,001
Long-term operating liabilities based on advances 53,122 0 14,162 67,284
Long-term operating liabilities to others 401,308 0 158,819 560,127
Total 44,936,598 90,469,730 280,454,057 415,860,385
Maturity date (all outstanding)
Maturity dates of long-term liabilities Up to 2 years From 3 to 5 years Over 5 years TOTAL
as at 31/12/2012 after the date of after the date of after the date of
the statement of the statement of the statement of
financial position financial position financial position
Long-term financial liabilities to banks 26,233,841 98,117,484 254,115,174 378,466,499
Long-term financial liabilities to others 5,302,641 0 0 5,302,641
Long-term operating liabilities to suppliers 1,777,218 0 0 1,777,218
Long-term operating liabilities based on advances 0 0 5,758 5,758
Long-term operating liabilities to others 200,000 0 240,039 440,039
Total 33,513,700 98,117,484 254,360,971 385,992,155
in €
5.5.8.8.3 Currency risk
The Group is exposed to currency risk in a lesser extent since the majority of inflows and
outflows are performed in domestic currency euro. The exposure to currency risk is related
to electricity trade in foreign markets.
The controlling company is mainly exposed to currency risk in electricity trading in
Hungary (purchase of electricity in HUF) which is managed by the use of forwards, namely
the currency forward swap FX Forward. In view of hedge accounting, the concluded
transactions of currency hedging are considered as highly effective since the concluded
hedges perfectly match the hedged item in all characteristics.
The exposure to currency risk occurs in operations of subsidiaries in the SE Europe. With
regard to the fact that operations of subsidiaries in the SE Europe represent a smaller
segment of operations in comparison with total HSE Group operations, the exposure to
currency risk is thus minimum.
Annual Report HSE 2012
5 Financial Report of HSE Group
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