Gschäftsbericht 2018

120 | Galenica financial statements 2018 Finance Notes to the consolidated financial statements of the Galenica Group 25. Financial risk management Galenica is exposed to various financial risks and liquidity requirements. Galenica’s financing and financial risk management activities are centralised into Group Treasury, which manages financial exposures of Galenica on account of changes in interest rates, currency risks, credit risks and liquidity in a manner that is consistent with underlying business risks and in line with the treasury policy approved by the Board of Directors as well as internal guidelines on cash and liability manage- ment. In addition, capital management of Galenica is also mainly exercised and monitored at Group level. It is Galenica’s policy not to enter into any speculative financial arrangements and to ensure matching maturities. Together, the risk management and monitoring measures described below are designed to limit negative impact on the financial state- ments. 25.1 Liquidity risk Liquidity risk management The aim of liquidity risk management is to provide sufficient cash to meet Galenica’s financial liabilities on time while main- taining the flexibility to take advantage of market opportunities and optimum investment conditions. Group Treasury is responsible for raising current and non-current loans as well as for decisions on investments. Apart from financing opera- tions, Galenica’s credit standing enables it to borrow funds at an advantageous rate. To ensure that Galenica can meet its payment obligations in good time, liquidity is monitored centrally. Group Treasury monitors the cash flows using rolling liquidity planning. This takes into account the maturities of the financial instruments as well as the cash flows from operating activities. Maturity profile of financial liabilities 2018 in thousand CHF Carrying amount Total undiscounted cash flows up to 3 months 3 to 12 months 1 to 5 years Maturities more than 5 years Trade and other payables 290,109 290,109 288,128 1,981 — — Current financial liabilities 29,674 29,674 28,025 1,649 — — Non-current financial liabilities 272 272 — — — 272 Bonds 380,638 399,400 — 2,800 211,200 185,400 Total 700,693 719,455 316,153 6,430 211,200 185,672 Maturity profile of financial liabilities 2017 in thousand CHF Carrying amount Total undiscounted cash flows up to 3 months 3 to 12 months 1 to 5 years Maturities more than 5 years Trade and other payables 285,088 285,088 281,391 3,697 — — Current financial liabilities 24,509 24,509 22,257 2,252 — — Non-current financial liabilities 1,034 1,034 — — 562 472 Bonds 380,747 402,200 — 2,800 11,200 388,200 Total 691,378 712,831 303,648 8,749 11,762 388,672 The values presented above are contractually agreed undiscounted cash flows including interest. Wherever the contractually agreed payment amount is liable to change before maturity as a result of variable interest rates, the payment amounts based on the interest rates on the reporting date are disclosed.