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NOTES
Consolidated financial statements • 107
SECTION 4: CAPITAL STRUCTURE AND NET FINANCIALS, CONTINUED
FINANCIAL RISKS, CONTINUED
4.4
Liabilities fall due as follows
Falling due
Falling due
Falling due
DKK million
within 1 year within 1-5 years
after 5 years
Total
2016
Non-derivatives
Loans and borrowings 3
3,008
-
3,011
Trade payables
1,622
-
-
1,622
Other payables
964
474
-
1,438
Derivatives
Derivative financial instruments
256
-
-
256
Total at 31 December
2,845
3,482
-
6,327
2015
Non-derivatives
Loans and borrowings
257
2,350
-
2,607
Trade payables
1,329
-
-
1,329
Other payables
814
282
-
1,096
Derivatives
Derivative financial instruments
214
-
-
214
Total at 31 December
2,614
2,632
-
5,246
Interest rate risk
Interest rate risk is the risk of interest rate fluctuations
resulting in changed costs related to floating-rate loans.
Interest rate risk is minimised by managing the overall
duration of interest rate-sensitive assets and liabilities. At
the reporting date, all interest-bearing loans and borrowings
were unhedged.
Contractual maturities of financial liabilities
The table below analyses the Group’s financial liabilities
into relevant maturity groupings based on their contractual
maturities for:
• all non-derivative financial liabilities, and
• net and gross settled derivative financial instruments
for which the contractual maturities are essential for an
understanding of the timing of the cash flows.
The amounts disclosed in the table are the contractual
undiscounted cash flows. Balances due within 12 months
equal their carrying amounts as the impact of discounting is
not significant.
Obligations to require non-controlling interests relate
to the acquisitions in Japan in January 2015 and China in
July 2015. The highest amounts payable according to the
respective contracts are for Japan DKK 200 million and China
DKK 317 million. Based on Management assessment, the
fair value of the obligation in Japan is calculated considering
the revenue at the end of the contract based on the latest
available information. Discounted fair value at the reporting
date was recognised at DKK 81 million (2015: DKK 71
million), while the obligation relating to China was recognised
at DKK 253 million (2015: DKK 132 million). Based on the
positive development of the activities in China, Management
has reassessed the obligation to acquire the remaining
non-controlling interests, and the recognised fair value was
increased by DKK 103 million. Included in the table below is
the earn-out payment relating to the non-controlling interest in
PANDORA Jewelry Central Western Europe A/S recognised at
DKK 0 (2015: DKK 0).
Commitments regarding operating leases have not
been included in the table below. Information regarding
operating leases can be found in note 3.2.
Based on the Group’s expectations for the future
operation and the Group’s current cash resources, no other
significant liquidity risks have been identified.