(30) Financial Instruments
Classification
Disclosure of financial instruments by nature, category and fair value is as follows:
|
|
|
Thousand of Euros |
|
||||||||||||||||
|
|
|
31/12/2016 |
|
||||||||||||||||
|
|
|
Carrying amount |
|
Fair Value |
|
||||||||||||||
|
|
|
Loans and |
|
Financial |
|
Available for |
|
Debts and |
|
Total |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
|
Non-current financial assets |
|
15,201 |
|
— |
|
29,998 |
|
— |
|
45,199 |
|
29,998 |
|
15,201 |
|
— |
|
45,199 |
|
|
Financial derivatives |
|
— |
|
13,665 |
|
— |
|
— |
|
13,665 |
|
— |
|
— |
|
13,665 |
|
13,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets measured at fair value |
|
15,201 |
|
13,665 |
|
29,998 |
|
— |
|
58,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current financial assets |
|
30,681 |
|
— |
|
— |
|
— |
|
30,681 |
|
|
|
|
|
|
|
|
|
|
Other current financial assets |
|
2,582 |
|
— |
|
— |
|
— |
|
2,582 |
|
|
|
|
|
|
|
|
|
|
Trade and other receivables |
|
434,136 |
|
— |
|
— |
|
— |
|
434,136 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
895,009 |
|
— |
|
— |
|
— |
|
895,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets not measured at fair value |
|
1,362,408 |
|
— |
|
— |
|
— |
|
1,362,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Unsecured Notes |
|
— |
|
— |
|
— |
|
(843,868 |
) |
(843,868 |
) |
(904,377 |
) |
— |
|
— |
|
(904,377 |
) |
|
Promissory Notes |
|
— |
|
— |
|
— |
|
(83,073 |
) |
(83,073 |
) |
|
|
|
|
|
|
|
|
|
Senior secured debt |
|
— |
|
— |
|
— |
|
(3,809,968 |
) |
(3,809,968 |
) |
— |
|
(3,811,970 |
) |
— |
|
(3,811,970 |
) |
|
Other bank loans |
|
— |
|
— |
|
— |
|
(138,186 |
) |
(138,186 |
) |
|
|
|
|
|
|
|
|
|
Finance lease payables |
|
— |
|
— |
|
— |
|
(9,945 |
) |
(9,945 |
) |
|
|
|
|
|
|
|
|
|
Other financial liabilities |
|
— |
|
— |
|
— |
|
(57,096 |
) |
(57,096 |
) |
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
— |
|
— |
|
— |
|
(461,073 |
) |
(461,073 |
) |
|
|
|
|
|
|
|
|
|
Other current liabilities |
|
— |
|
— |
|
— |
|
(7,431 |
) |
(7,431 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities not measured at fair value |
|
— |
|
— |
|
— |
|
(5,410,640 |
) |
(5,410,640 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,377,609 |
|
13,665 |
|
29,998 |
|
(5,410,640 |
) |
(3,989,368 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Group does not provide details of the fair value of certain financial instruments as their carrying amount is very similar to their fair value because of its short term.
|
|
|
Thousand of Euros |
|
||||||||||||||||
|
|
|
31/12/2017 |
|
||||||||||||||||
|
|
|
Carrying amount |
|
Fair Value |
|
||||||||||||||
|
|
|
Loans and |
|
Financial |
|
Available for |
|
Debts and |
|
Total |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
|
Non-current financial assets |
|
— |
|
— |
|
38,708 |
|
— |
|
38,708 |
|
38,708 |
|
— |
|
— |
|
38,708 |
|
|
Financial derivatives |
|
— |
|
8,338 |
|
— |
|
— |
|
8,338 |
|
— |
|
— |
|
8,338 |
|
8,338 |
|
|
Financial assets measured at fair value |
|
— |
|
8,338 |
|
38,708 |
|
— |
|
47,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current financial assets |
|
22,843 |
|
— |
|
— |
|
— |
|
22,843 |
|
|
|
|
|
|
|
|
|
|
Other current financial assets |
|
10,738 |
|
— |
|
— |
|
— |
|
10,738 |
|
|
|
|
|
|
|
|
|
|
Trade and other receivables |
|
304,864 |
|
— |
|
— |
|
— |
|
304,864 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
886,521 |
|
— |
|
— |
|
— |
|
886,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets not measured at fair value |
|
1,224,966 |
|
— |
|
— |
|
— |
|
1,224,966 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Unsecured Notes |
|
— |
|
— |
|
— |
|
(858,911 |
) |
(858,911 |
) |
(1,018,130 |
) |
— |
|
— |
|
(1,018,130 |
) |
|
Promissory Notes |
|
— |
|
— |
|
— |
|
(90,294 |
) |
(90,294 |
) |
|
|
|
|
|
|
|
|
|
Senior secured debt |
|
— |
|
— |
|
— |
|
(4,853,939 |
) |
(4,853,939 |
) |
— |
|
(5,063,769 |
) |
— |
|
(5,063,769 |
) |
|
Other bank loans |
|
— |
|
— |
|
— |
|
(198,741 |
) |
(198,741 |
) |
|
|
|
|
|
|
|
|
|
Finance lease payables |
|
— |
|
— |
|
— |
|
(9,360 |
) |
(9,360 |
) |
|
|
|
|
|
|
|
|
|
Other financial liabilities |
|
— |
|
— |
|
— |
|
(45,640 |
) |
(45,640 |
) |
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
— |
|
— |
|
— |
|
(423,096 |
) |
(423,096 |
) |
|
|
|
|
|
|
|
|
|
Other current liabilities |
|
— |
|
— |
|
— |
|
(14,879 |
) |
(14,879 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities not measured at fair value |
|
— |
|
— |
|
— |
|
(6,494,860 |
) |
(6,494,860 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,224,966 |
|
8,338 |
|
38,708 |
|
(6,494,860 |
) |
(5,222,848 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Group does not provide details of the fair value of certain financial instruments as their carrying amount is very similar to their fair value because of its short term.
Financial derivatives
At 31 December 2017 and 2016 the Group has recognized the following derivatives:
|
|
|
|
|
Notional |
|
Notional |
|
Thousands of Euros |
|
|
|
||
|
|
|
|
|
amount at |
|
amount at |
|
Value at |
|
Value at |
|
|
|
|
Financial derivatives |
|
Currency |
|
31/12/2017 |
|
31/12/2016 |
|
31/12/17 |
|
31/12/16 |
|
Maturity |
|
|
Call Option |
|
US Dollar |
|
N/A |
|
N/A |
|
8,338 |
|
9,487 |
|
30/04/2019 |
|
|
Embedded derivative |
|
US Dollar |
|
N/A |
|
N/A |
|
— |
|
4,178 |
|
31/05/2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
8,338 |
|
13,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets (notes 10 and 11) |
|
|
|
|
|
|
|
8,338 |
|
13,665 |
|
|
|
At 31 December 2017, the Group has totally impaired the amount of the embedded derivative related to the convertible bonds issued by Aradigm due to the no recommendation of approval of LinhaliqTM by the Food and Drug Administration (FDA) (see note 11).
On May 11, 2016 the Group has paid an aggregate amount equal to US Dollars 10 million (Euros 8,960 thousand) in respect of the call right for the Interstate Blood Bank, Inc. shares, Bio-Blood Components, Inc. shares and Plasma Biological Services, LLC. units that are not owned by the Group. The call right can be exercised by the Group by delivering written notice of its intention at any time on or after February 1, 2019 and on or before April 30, 2019 (see note 11).
Financial derivatives are measured based on observable market data (level 3 of fair value hierarchy). Regarding the valuation of derivative instruments, the selection of the appropriate data within the alternatives requires the use of judgement in qualitative factors such as, which methodology and valuation models are used, and in quantitative factors, data required to be included within the chosen models.
Derivative financial instruments that do not meet the hedge accounting requirements are classified and measured as financial assets or financial liabilities at fair value through profit and loss.
Credit risk
(a) Exposure to credit risk
The carrying amount of financial assets represents the maximum exposure to credit risk. At 31 December 2017 and 2016 the maximum level of exposure to credit risk is as follows:
|
|
|
|
|
Thousands of Euros |
|
||
|
Carrying amount |
|
Note |
|
31/12/2017 |
|
31/12/2016 |
|
|
|
|
|
|
|
|
|
|
|
Non-current financial assets |
|
11 |
|
69,889 |
|
89,545 |
|
|
Other current financial assets |
|
11 |
|
10,738 |
|
2,582 |
|
|
Trade receivables |
|
13 |
|
286,198 |
|
413,656 |
|
|
Other receivables |
|
13 |
|
18,666 |
|
20,480 |
|
|
Cash and cash equivalents |
|
14 |
|
886,521 |
|
895,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,272,012 |
|
1,421,272 |
|
|
|
|
|
|
|
|
|
|
The maximum level of exposure to risk associated with receivables at 31 December 2017 and 2016, by geographical area, is as follows.
|
|
|
Thousands of Euros |
|
||
|
Carrying amount |
|
31/12/2017 |
|
31/12/2016 |
|
|
|
|
|
|
|
|
|
Spain |
|
63,505 |
|
56,104 |
|
|
EU countries |
|
53,403 |
|
52,034 |
|
|
United States of America |
|
65,068 |
|
196,885 |
|
|
Other European countries |
|
5,761 |
|
13,428 |
|
|
Other regions |
|
117,127 |
|
115,685 |
|
|
|
|
|
|
|
|
|
|
|
304,864 |
|
434,136 |
|
|
|
|
|
|
|
|
Details of balances receivable by country such as Greece, Italy, Spain and Portugal at 31 December 2016 are as follows:
|
|
|
Thousands of Euros |
|
||||||||||||
|
|
|
Balances with public entities |
|
Balance with third parties |
|
|
|
||||||||
|
|
|
Balance (1) |
|
Balance |
|
Provision |
|
Balance |
|
Balance |
|
Provision |
|
Net debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greece |
|
— |
|
— |
|
— |
|
425 |
|
— |
|
(137 |
) |
288 |
|
|
Italy |
|
7,188 |
|
2,077 |
|
— |
|
12,196 |
|
7,375 |
|
(3,098 |
) |
16,286 |
|
|
Spain |
|
23,281 |
|
3,287 |
|
— |
|
27,316 |
|
9,595 |
|
(249 |
) |
50,348 |
|
|
Portugal |
|
2,734 |
|
1,205 |
|
(356 |
) |
129 |
|
78 |
|
(27 |
) |
2,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,203 |
|
6,569 |
|
(356 |
) |
40,066 |
|
17,048 |
|
(3,511 |
) |
69,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details of balances receivable by country such as Greece, Italy, Spain and Portugal at 31 December 2017 are as follows:
|
|
|
Thousands of Euros |
|
||||||||||||
|
|
|
Balances with public entities |
|
Balance with third parties |
|
|
|
||||||||
|
|
|
Balance (1) |
|
Balance |
|
Provision |
|
Balance |
|
Balance |
|
Provision |
|
Net debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greece |
|
— |
|
— |
|
— |
|
745 |
|
— |
|
— |
|
745 |
|
|
Italy |
|
4,020 |
|
2,348 |
|
— |
|
10,614 |
|
6,342 |
|
(4,016 |
) |
10,618 |
|
|
Spain |
|
33,702 |
|
7,785 |
|
— |
|
23,444 |
|
8,926 |
|
(136 |
) |
57,010 |
|
|
Portugal |
|
1,078 |
|
490 |
|
(296 |
) |
1,972 |
|
1,085 |
|
(126 |
) |
2,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,800 |
|
10,623 |
|
(296 |
) |
36,775 |
|
16,353 |
|
(4,278 |
) |
71,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision has been made for balances receivable from Portuguese public entities on the basis of the best estimate of their expected collection in view of the current situation regarding negotiations. The Group does not currently have any reason to consider that the receivables from public entities in Spain will not be recoverable.
(b) Impairment losses
Details of the maturity of trade receivables, net of impairment provisions are as follows:
|
|
|
Thousands of Euros |
|
||
|
|
|
31/12/2017 |
|
31/12/2016 |
|
|
|
|
|
|
|
|
|
Not matured |
|
249,652 |
|
360,018 |
|
|
Less than 1 month |
|
24,302 |
|
24,650 |
|
|
1 to 4 months |
|
18,717 |
|
29,318 |
|
|
4 months to 1 year |
|
8,092 |
|
10,045 |
|
|
More than one year |
|
4,101 |
|
10,105 |
|
|
|
|
|
|
|
|
|
|
|
304,864 |
|
434,136 |
|
|
|
|
|
|
|
|
Unimpaired receivables that are past due mainly relate to public entities.
Movement in the bad debt provision was as follows:
|
|
|
Thousands of Euros |
|
||||
|
|
|
31/12/2017 |
|
31/12/2016 |
|
31/12/2015 |
|
|
|
|
|
|
|
|
|
|
|
Opening balance |
|
17,987 |
|
13,210 |
|
14,092 |
|
|
Net charges for the year |
|
8,003 |
|
6,411 |
|
1,800 |
|
|
Net cancellations for the year |
|
(4,732 |
) |
(2,217 |
) |
(2,984 |
) |
|
Translation differences |
|
(1,552 |
) |
583 |
|
302 |
|
|
|
|
|
|
|
|
|
|
|
Closing balance |
|
19,706 |
|
17,987 |
|
13,210 |
|
|
|
|
|
|
|
|
|
|
An analysis of the concentration of credit risk is provided in note 5 (a).
Liquidity risk
The management of the liquidity risk is explained in note 5.
Details of the contractual maturity dates of financial liabilities including committed interest calculated using interest rate forward curves are as follows:
|
|
|
|
|
Thousands of Euros |
|
||||||||||||
|
Carrying amount |
|
Note |
|
Carrying |
|
Contractual |
|
6 months |
|
6 - 12 |
|
1-2 years |
|
2- 5 years |
|
More than |
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans |
|
20 |
|
3,948,154 |
|
4,669,325 |
|
134,918 |
|
119,476 |
|
192,059 |
|
4,183,259 |
|
39,613 |
|
|
Other financial liabilities |
|
20 |
|
57,096 |
|
57,096 |
|
23,082 |
|
3,039 |
|
11,468 |
|
16,686 |
|
2,821 |
|
|
Bonds and other marketable securities |
|
20 |
|
926,941 |
|
1,305,680 |
|
107,975 |
|
24,903 |
|
49,806 |
|
1,122,996 |
|
— |
|
|
Finance lease payables |
|
20 |
|
9,945 |
|
10,725 |
|
2,195 |
|
2,072 |
|
3,630 |
|
2,828 |
|
— |
|
|
Payable to suppliers |
|
21 |
|
461,073 |
|
461,073 |
|
461,029 |
|
44 |
|
— |
|
— |
|
— |
|
|
Other current liabilities |
|
22 |
|
7,431 |
|
7,431 |
|
7,118 |
|
313 |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
5,410,640 |
|
6,511,330 |
|
736,317 |
|
149,847 |
|
256,963 |
|
5,325,769 |
|
42,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thousands of Euros |
|
||||||||||||
|
Carrying amount |
|
Note |
|
Carrying |
|
Contractual |
|
6 months |
|
6 - 12 |
|
1-2 years |
|
2- 5 years |
|
More than |
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans |
|
20 |
|
5,052,680 |
|
6,138,673 |
|
105,584 |
|
106,492 |
|
322,421 |
|
3,115,887 |
|
2,488,289 |
|
|
Other financial liabilities |
|
20 |
|
45,640 |
|
45,642 |
|
19,393 |
|
2,610 |
|
10,758 |
|
10,497 |
|
2,384 |
|
|
Bonds and other marketable securities |
|
20 |
|
949,205 |
|
1,331,203 |
|
107,203 |
|
16,000 |
|
32,000 |
|
128,000 |
|
1,048,000 |
|
|
Finance lease payables |
|
20 |
|
9,360 |
|
10,136 |
|
2,192 |
|
2,113 |
|
2,602 |
|
2,790 |
|
439 |
|
|
Payable to suppliers |
|
21 |
|
423,096 |
|
423,096 |
|
423,020 |
|
76 |
|
— |
|
— |
|
— |
|
|
Other current liabilities |
|
22 |
|
14,878 |
|
14,878 |
|
14,462 |
|
416 |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
6,494,859 |
|
7,963,628 |
|
671,854 |
|
127,707 |
|
367,781 |
|
3,257,174 |
|
3,539,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency risk
The Group’s exposure to currency risk is as follows:
|
|
|
Thousands of Euros |
|
||
|
|
|
31/12/2016 |
|
||
|
|
|
Euros (*) |
|
Dollars (**) |
|
|
Trade receivables |
|
5,576 |
|
7,520 |
|
|
Receivables from Group companies |
|
33,792 |
|
37,740 |
|
|
Loans to Group companies |
|
597,897 |
|
1,854 |
|
|
Cash and cash equivalents |
|
32,255 |
|
21,254 |
|
|
Trade payables |
|
(11,188 |
) |
(5,062 |
) |
|
Payables to Group companies |
|
(42,395 |
) |
(32,159 |
) |
|
Loans from Group companies |
|
(268,040 |
) |
(4,295 |
) |
|
Bank loans |
|
(489,000 |
) |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet exposure |
|
(141,103 |
) |
26,852 |
|
|
|
|
|
|
|
|
(*) Balances in Euros in subsidiaries with US Dollars functional currency
(**) Balances in US Dollars in subsidiaries with Euros functional currency
|
|
|
Thousands of Euros |
|
||
|
|
|
31/12/2017 |
|
||
|
|
|
Euros (*) |
|
Dollars (**) |
|
|
Trade receivables |
|
3,596 |
|
22,936 |
|
|
Receivables from Group companies |
|
103,338 |
|
7,619 |
|
|
Loans to Group companies |
|
34,140 |
|
91,566 |
|
|
Cash and cash equivalents |
|
63,981 |
|
2,172 |
|
|
Trade payables |
|
(14,213 |
) |
(3,582 |
) |
|
Payables to Group companies |
|
(42,296 |
) |
(11,241 |
) |
|
Loans from Group companies |
|
(22,913 |
) |
(3,953 |
) |
|
Bank loans |
|
(85,000 |
) |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet exposure |
|
40,633 |
|
105,517 |
|
|
|
|
|
|
|
|
(*) Balances in Euros in subsidiaries with US Dollars functional currency
(**) Balances in US Dollars in subsidiaries with Euros functional currency
The most significant exchange rates applied at 2017 and 2016 year ends are as follows:
|
|
|
Closing exchange rate |
|
||
|
Euros |
|
31/12/2017 |
|
31/12/2016 |
|
|
|
|
|
|
|
|
|
US Dollars |
|
1.1993 |
|
1.0541 |
|
A sensitivity analysis for foreign exchange fluctuations is as follows:
Had the US Dollar strengthened by 10% against the Euro at 31 December 2017, equity would have increased by Euros 416,116 thousand (Euros 318,528 thousand at 31 December 2016) and profit due to foreign exchange differences would have increased by Euros 14,615 thousand (would have decreased by Euros 11,425 thousand at 31 December 2016). This analysis assumes that all other variables are held constant, especially that interest rates remain constant.
A 10% weakening of the US Dollar against the Euro at 31 December 2017 and 2016 would have had the opposite effect for the amounts shown above, all other variables being held constant.
Interest rate risk
(a) Interest-rate profile
To date, the profile of interest on interest-bearing financial instruments is as follows:
|
|
|
Thousands of Euros |
|
||
|
|
|
31/12/2017 |
|
31/12/2016 |
|
|
Fixed-interest financial instruments |
|
|
|
|
|
|
Financial liabilities |
|
(1,170,000 |
) |
(1,048,676 |
) |
|
|
|
|
|
|
|
|
|
|
(1,170,000 |
) |
(1,048,676 |
) |
|
Variable-interest financial instruments |
|
(5,049,382 |
) |
(3,964,320 |
) |
|
|
|
|
|
|
|
|
Financial liabilities |
|
(5,049,382 |
) |
(3,964,320 |
) |
|
|
|
|
|
|
|
|
|
|
(6,219,382 |
) |
(5,012,996 |
) |
|
|
|
|
|
|
|
(b) Sensitivity analysis
If the interest rate had been 100 basis points higher during 2017, the interest expense would have increased by Euros 53 million. As the Group does not have any derivatives in place, the net effect on cash interest payments would have increased by the same amount.
If the interest rate had been 100 basis points higher during 2016, the interest expense would have increased by Euros 40.7 million, the finance cost due to changes in the value of derivatives would have been Euros 2.6 million lower. The impact on equity is not significant because of derivatives close to maturity on 31 March 2016 for Euro swaps and 30 June 2016 for US dollar swaps. Therefore, the net effect on cash interest payments should have been Euros 38.1 million.