Investor Presentaiton
152
Notes to the Consolidated Financial Statements
4.7
Financial risk management (continued)
At the reporting date, the Group has total undrawn committed facilities of $2,765 million (2022: $2,460 million) available.
These facilities may be drawn at any time, subject to the terms of the lending agreements. Some facilities are subject
to certain financial covenants and undertakings. No covenants have been breached during the period.
The following tables detail the Group's undiscounted non-derivative liabilities and derivative assets and liabilities and
their contractual maturities. The maturity profile of the Group's undiscounted lease liabilities is included in Note 3.5.2.
MATURITY ANALYSIS OF FINANCIAL ASSETS AND LIABILITIES
4.7
Financial risk management (continued)
2023
ONE YEAR OR
LESS
$M
ONE TO TWO
YEARS
$M
TWO TO FIVE
YEARS
$M
OVER FIVE
YEARS
$M
TOTAL
$M
Capital structure,
financing and risk management
4
153
Annual Report 2023
Woolworths Group
4.7.3 Credit risk
Credit risk is the risk that counterparties who may be required to pay monies to the Group may fail and therefore not beable
to make those payments. Under the treasury policy approved by the Board, the Group can only invest surplus funds or
execute derivatives with counterparty banks and financial institutions that are rated BBB+ or higher by Standard & Poor's
(or equivalent with other rating agencies).
The recognised financial assets of the Group include amounts receivable arising from unrealised gains on derivatives.
For derivatives, credit risk may also arise from the potential failure of the counterparties to meet their obligations under
the respective contracts at maturity.
At the reporting date, no material credit risk exposure existed in relation to potential counterparty failure on such financial
instruments. Other than the loss allowance recognised in relation to trade and other receivables in Note 3.1, no financial
assets were impaired or past due.
Fair value measurement of financial instruments
Some of the Group's financial assets and financial liabilities are measured at fair value at the end of each reporting period.
They are grouped into the following levels based on the degree to which the fair value measurement inputs are observable:
Level 1 Fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets
or liabilities.
Level 2 Fair value measurements are those derived from inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 Fair value measurements are those derived from valuation techniques that include inputs for the asset or liability
that are not based on observable market data (unobservable inputs).
1
highlights
Performance
2
Business
review
3
Non-derivative liabilities
Borrowings (floating)
(118)
(114)
(828)
(1,060)
Borrowings (fixed)
(455)
(444)
(456)
(1,901)
(3,256)
Put option liabilities over non-controlling interests
(176)
(619)
Trade and other payables¹
(7,132)
(7,881)
(558)
(1,903)
(1,901)
(795)
(7,132)
(12,243)
4.7.4
Derivative assets and liabilities
Foreign exchange contracts
Cross currency swaps
Interest rate swaps2
Total
21
21
(16)
(16)
(47)
(7)
(86)
(31)
(23)
(56)
(28)
(138)
(26)
(39)
(103)
(35)
(7,907)
(597)
(2,006)
(1,936)
(203)
(12,446)
MATURITY ANALYSIS OF FINANCIAL ASSETS AND LIABILITIES
ONE YEAR OR
LESS
ONE TO TWO
YEARS
2022
$M
$M
TWO TO FIVE
YEARS
$M
OVER FIVE
YEARS
$M
TOTAL
$M
NOTE
FAIR VALUE ASSET
FAIR VALUE LIABILITY
2023
2022
2023
2022
$M
$M
$M
$M
FAIR VALUE
HIERARCHY
Non-derivative liabilities
Borrowings (floating)
(380)
(472)
(754)
(1,606)
Forward exchange contracts and foreign
currency options
4.7.1
43
94
(1)
(6)
Level 2
Directors'
Report
Borrowings (fixed)
(55)
(455)
(516)
(2,284)
(3,310)
Cross currency, interest rate swaps and
fair value hedges
4.7.1
38
7
(172)
(163)
Level 2
Put option liabilities over non-controlling interests
(76)
(587)
(663)
Power purchase agreement
32
22
Trade and other payables¹
(6,566)
(7,077)
(927)
(1,857)
(2,284)
(6,566)
(12,145)
Convertible and SAFE notes
2
11
Level 2
Level 3
Unlisted equity securities
3.3
75
60
Level 3
4
Derivative assets and liabilities
Foreign exchange contracts
86
(7)
Cross currency swaps
(16)
(16)
(48)
(23)
79
(103)
Put option liabilities over non-controlling
interests
3.3
(765)
(630)
Level 3
Report
Interest rate swaps²
9
9
14
11
43
79
(14)
(34)
(12)
19
There were no transfers between level 1, level 2, or level 3 during the period.
Financial
Total
1 Excludes contract liabilities.
(6,998)
(941)
(1,891)
(2,296)
(12,126)
LEVEL 3 MOVEMENTS
The following table shows a reconciliation from the opening balances to the closing balances for Level 3 fair values:
Additions
For floating rate instruments, the amount disclosed is determined by reference to the interest rate at the last re-pricing
date and the loans are repaid at the respective facility maturity date. Cash flows represented are contractual and calculated
on an undiscounted basis, based on current rates at the reporting date.
Balance at start of the period
2 Interest rate swaps are net settled.
Interest unwind
Revaluation
Early acquisition of additional shares
Conversion
Balance at end of the period
CONVERTIBLE AND SAFE NOTES
UNLISTED EQUITY SECURITIES
PUT OPTION LIABILITIES OVER
NON-CONTROLLING INTERESTS
2023
2022
2023
2022
2023
2022
$M
$M
$M
$M
$M
$M
11
62
60
33
(630)
(390)
3
19
8
(79)
(411)
(15)
(13)
22
19
(41)
164
20
(7)
(54)
11
75
60
(765)
(630)
LO
5
Other
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