DSV Annual Report 2022
69
DSV Annual Report 2022
Consolidated financial statements 2022
= III
4.4 Financial risks
Liquidity risk
The cash readiness of the Group is ensured through short and long-term
credit facilities from the main banks of the Group and through the issuance
of bonds. The purpose of issuing bond loans is to diversify the Group's
long-term debt, making the Group less dependent on bank loans.
The Group's bank and bond loans are subject to standard clauses, accord-
ing to which the Group's debt must be repaid in case of a change of con-
trol. The long-term credit facilities with banks are furthermore subject
to one covenant. The covenant relates to the gearing ratio of the Group
and is reported on every quarter. The covenant has not been breached
in 2022.
The total duration of the Group's long-term loan commitments and the
amounts drawn on its credit lines at 31 December 2022 are shown in the
accompanying table. Furthermore, a maturity analysis has been provided
based on contractual cash flows, including estimated interest payments.
The amounts have not been discounted and as such do not reconcile
directly to the balance sheet.
Foreign currency risk
Due to its global activities, the Group is exposed to exchange rate fluctu-
ations to a certain extent. DSV seeks to eliminate foreign currency risks
by hedging currency exposures centrally via the Group's Treasury depart-
ment. The risk exposure is managed on a net basis, primarily by using
foreign exchange forward contracts.
The Group's foreign subsidiaries are not affected where trading income
and costs are denominated in the local functional currency. This applies to
a large part of the Group's subsidiaries. Furthermore, a large proportion of
the income and expenses of the Group are denominated in EUR, and the
total foreign currency risk is therefore limited.
Commitments and amounts drawn on long-term credit facilities at 31 December 2022:
Principal amount Principal amount
(EURM)
(DKKm)
Loan facilities
Overdraft facility I
Overdraft facility II
Total and weighted duration
Expiry of
133
Fixed/floating
interest rate
Bond loan ISIN XS2387735470
Bond loan ISIN XS2360881549
Bond loan ISIN XS2308616841
Bond loan ISIN XS2458285355
Bond loan ISIN 212542679
Bond loan ISIN 0030403993
Revolving credit facility I
500
3,718
600
4,462
Fixed
Fixed
500
3,718
commitments
17-09-2036
05-07-2033
Fixed 03-03-2031
Duration (years)
Undrawn
13.7
10.5
8.2
600
4,462
Fixed
16-03-2030
7.2
500
3,718
Fixed
26-02-2027
4.2
200
1,487
Fixed 20-09-2024
1.7
200
1,487
Floating
03-10-2027
4.8
1,487
Revolving credit facility II
75
558
Floating
31-12-2024
2.0
558
Revolving credit facility III
125
930
Revolving credit facility IV
150
1,115
Floating
Floating 31-01-2024
28-02-2024
1.2
930
1.1
1,115
Revolving credit facility V
100
744
Floating 31-01-2024
1.1
744
Revolving credit facility VI
100
744
Floating 15-01-2026
3.0
744
100
744
50
372
Floating 28-02-2025
Floating
31-01-2024
2.2
744
3,800
28,259
1.1
8.3
372
6,694
829
21,377
Total cash flow,
Carrying amount including interest
859
23,062
0-1 year
1-5 years
> 5 years
859
16,767
21,278
14,992
14,992
93
93
186
4,302
14,992
93
5,852
11,059
17,024
5,917
60,284
20,432
16,911
22,941
Total cash flow,
0-1 year
1-5 years
> 5 years
3,692
17,040
1,952
9,835
The Group's financial liabilities fall due as follows:
Financial liabilities - maturity 2022 (DKKm)
Overdraft and credit facilities
Issued bonds
Lease liabilities
Trade payables
Currency derivatives
Total
Financial liabilities - maturity 2021 (DKKm)
Overdraft and credit facilities
Issued bonds
Lease liabilities
Trade payables
Currency derivatives
Interest rate derivatives
Total
54,058
Carrying amount including interest
1,932
20,923
1,896
19,557
15,288
17,040
18,330
17,040
1,932
2,741
16,230
4,803
33333
53,821
58,249
25,429
11,787
21,033View entire presentation