Hyprop Integrated Report 2015

36. Financial risk management

continued

Cash and cash equivalents

It is group policy to deposit short-term cash investments with reputable financial institutions.

Liquidity risk

Liquidity risk is the risk that the group will be unable to meet its financial commitments. This risk is minimised by holding cash balances

and by a floating loan facility. In addition, the company regularly monitors forecast cash flows and considers the matching of maturity

profiles of financial assets and liabilities.

Foreign exchange risk

The group operates beyond South African borders and is exposed to foreign exchange risk arising from exposure to the US Dollar.

Foreign exchange risk arises from recognised assets and liabilities and net investments in foreign operations. Currently this exposure

arises through Hyprop’s 37,5% interest in AttAfrica and its 50% interest in Manda Hill Mauritius, via its wholly owned subsidiary, Hyprop

Mauritius. The group hedges the majority of interest rates in respect of US Dollar funding raised to finance investments in sub-Saharan

Africa (excluding SA). US Dollar funding is currently 90% hedged. Income earned from foreign operations is currently not hedged.

Foreign currency exposure at the end of the year

June 2015

R000

June 2014

R000

Non-current assets

Loan to AttAfrica and Manda Hill Mauritius USD183 926 879 (2014: USD76 803 544)

2 258 125

812 459

Current assets

Receivables USD2 948 (2014: USD2 384)

Cash and cash equivalents USD754 (2014: USD1 160)

Liabilities

Interest-bearing debt USD178 628 099 (2014: USD74 680 258)

2 193 071

789 998

Derivative instrument USD1 501 278 (2014: 190 837)

18 432

2 019

Taxation USD87 777 (2014: nil)

1 078

Payables USD687 232 (2014: USD99 388)

8 437

3 336

Exchange rates used for conversion of foreign amounts were:

USD

12,28

10,58

If the R/USD exchange rate had decreased/increased by 1% for the year ended 30 June 2015 (2014: 1%), the group’s total consolidated

profit for the year ended 30 June 2015 would have increased/decreased by R0,4 million (2014: R0,5 million).

143

Hyprop Investments Limited

Integrated Report 2015