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5. Financial risk management

5.3 Liquidity risk

5.3 Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under normal circumstances without incurring unacceptable losses or risking damage to the Group reputation.

The Group maintains sufficient reserves of cash and readily realizable marketable securities to meet its liquidity requirements at all times. In addition, the Group has certain unutilized revolving committed facilities at its disposal.

At the statement of financial position date, the Group had the following sources of liquidity available:

  • cash and cash equivalents (Note 26 ): € 1 336 million (2019: € 1 293 million)

  • unutilized credit facilities and undrawn available amount under finance contract (Note 29 ): € 47 million (2019: € 55 million), linear digressive since 2016 until 2025

  • unutilized revolving credit facilities (Note 29 ): € 1 billion (2019: € 1 billion); the existing € 1 billion syndicated commit- ted revolving credit facility of the Group, maturing in 2025 was undrawn per end 2020

The table below analyses the contractual maturities of the Group financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date, excluding the impact of netting. The amounts mentioned below with respect to the financial derivatives are indicative of the contractual undiscounted cash flows.

At December 31, 2020

       

€ million

Note

Total

Contractual cash flow

Less than 1 year

Between 1 and 2 years

Between 2 and 5 years

Over 5 years

Bank Borrowings and other long-term loans

29

1 567

1 567

13

0

1 554

0

Debentures and other short-term loans

29

0

0

0

0

0

0

Lease liabilities

29

110

126

35

27

33

31

Private Placement maturing in 2027

30

150

162

2

2

5

153

Retail bond maturing in 2023

30

186

203

9

9

185

0

Institutional Eurobond maturing in 2022

30

351

364

7

7

350

0

Institutional Eurobond maturing in 2021

30

350

364

14

350

0

0

Retail bond maturing in 2020

30

0

0

0

0

0

0

EMTN notes maturing in 2019

30

0

0

0

0

0

0

Trade and other liabilities

35

2 229

2 229

2 138

12

71

8

Bank overdrafts

29

33

33

33

0

0

0

Interest rate swaps

 

20

20

11

5

4

0

Forward exchange contracts and other derivative financial instruments used for hedging purposes

       

Outflow

 

2 924

2 924

2 924

0

0

0

Inflow

 

2 998

2 998

2 998

0

0

0

Forward exchange contracts and other derivative financial instruments at fair value through profit and loss

       

Outflow

 

1 623

1 623

1 623

0

0

0

Inflow

 

1 583

1 583

1 583

0

0

0

At December 31, 2019

       

€ million

Note

Total

Contractual cash flow

Less than 1 year

Between 1 and 2 years

Between 2 and 5 years

Over 5 years

Bank Borrowings and other long term loans

29

31

31

17

14

0

0

Debentures and other short term loans

29

0

0

0

0

0

0

Lease liabilities

29

99

106

35

23

27

21

Retail bond maturing in 2023

30

189

212

9

9

194

0

Institutional Eurobond maturing in 2022

30

352

371

7

7

357

0

Institutional Eurobond maturing in 2021

30

355

378

14

364

0

0

Retail bond maturing in 2020

30

250

259

259

0

0

0

EMTN notes maturing in 2019

30

0

0

0

0

0

0

Trade and other liabilities

35

1 888

1 888

1 856

9

10

13

Bank overdrafts

29

5

5

5

0

0

0

Interest rate swaps

 

38

38

15

12

11

0

Forward exchange contracts and other derivative financial instruments used for hedging purposes

       

Outflow

 

3 919

3 919

3 919

0

0

0

Inflow

 

3 876

3 876

3 876

0

0

0

Forward exchange contracts and other derivative financial instruments at fair value through profit and loss

       

Outflow

 

1 236

1 236

1 236

0

0

0

Inflow

 

1 236

1 236

1 236

0

0

0