PDF, 1.2 MB - Pfleiderer AG

22 being focused: being better
Financing
Refinancing in the Pfleiderer Group is directed at securing the Company’s long-term future.
Long-term liabilities from loans have maturity periods up to 2008 and carry an average interest
charge of less than six percent.
The rating given by Fitch Ratings Ltd was revised in May and September 2002. While in
May our initial rating of BBB- for senior unsecured debt was confirmed, this was downgraded
to BB+ in December. The main reason for the downgrade is the continued difficult market
environment for engineered woods. However, this downgrade does not impair the Company’s
financial position, as we still have available credit lines amounting to a nine-digit sum and no
significant borrowing is expected in the near future.
Hedging measures against exchange rate risks due to business conducted outside the
euro zone means that fluctuations in results can be limited. International business is largely
carried out though our own production sites abroad, with the Company involved in only a low
level of export activity. The low level of export activity and relatively stable currency exchange
rates means that no significant risks are expected from changes in exchange or interest rates.
Derivative Financial Instruments
Derivative financial instruments are only used by the Pfleiderer Group to hedge currency exchange
or interest rates for transactions which are part of the Company’s normal operations.
Hedging activities are normally conducted centrally by Pfleiderer AG and Pfleiderer Finance
B.V. on behalf of the Company’s consolidated companies. More information is provided in the
Notes to the Consolidated Financial Statements.