Le Magazine du Trésorier - n°63 - 3ème trimestre 2008 - (Page 6)

INTERVIEW Interview with…Benny Loix, Group Treasurer Belgacom FM : Could you present us briefly your company? Benny Loix :The Belgacom Group is the benchmark Belgian provider of integrated telecommunications services with a turnover of over ?6 Bio and almost 1 Bio benefit before taxes in 2007. With a history as the country’s incumbent operator, the Belgacom Group, through its strong brands of Belgacom, Proximus, Telindus and Skynet, has developed a complete range of offers and solutions. The Belgacom Group offers a complete quadruple-play solution, based on fixed and mobile telephony, the Internet, and television. It is committed to meeting the demands of its business and residential customers, and innovates in order to anticipate their future needs, incorporating the latest technological developments FM: Is treasury management based on a centralized or decentralized structure? BL: The treasury management is entirely centralized in our headquarters in Brussels through the use of a Belgian Coordination center, Belgacom Group International Services (BGIS), acting as the in house bank for the group. FM : Does the company report under IAS (IFRS) or under US GAAP? If none of these are used, then what other GAAP are applied? BL: Belgacom still reports under Belgian GAAP and does report under IFRS since 2005. FM : If IAS is applied, which is or which are the main consequence(s) from the point of view of foreign exchange and interest rate risk management? BL : The complexity is to deal at the same time with the economic situation meaning you have to protect your future position and trying to avoid a high volatility on your P&L in case hedge accounting can not be applied. FM: Could you shortly describe the hedged financial risks under the control of the treasurer? BL : Group treasury is responsible for the financial risk management meaning the interest rate and currency risk management. FM: What is your banking strategy? BL: Belgacom has split his banks in TIER I, TIER II and TIER III banks. TIER I and TIER II banks are mainly the banks with a long standing relation ship. Main difference is the level of balance sheet commitments that are provided by the banks. These days this is becoming more and more important. FM: Are you dealing with a lot of banks? BL: Tier I,II, III is a bank group of approximately 15 banks. FM: Generally speaking, are you rather a borrower or a lender? BL: Today Belgacom is a net borrower. Belgacom’s net debt position end 2007 was almost ?1.1Bio. Belgacom did in 2006 the biggest corporate bond issue in Belgium of ? 1.65 Bio. We issued a 3year floater and a 5year and 10 year fix. This financing was needed in order to fund the acquisition of the stake Vodafone held in Proximus, our mobile subsidiary. FM:Are you relying on the capital markets? BL: We do rely on the capital markets but at this moment we do not have immediate funding needs or refinancing. Belgacom has still access to more than 1 Bio committed credit facilities’ provided by our bank group. FM: Which are the currencies the company is exposed to? BL : The main currency exposures are related to capex purchase in USD and SDR exposures linked to the activities of the International Carrier Service activities. FM: Do you have a "credit rating"? BL: Belgacom has a rating A with S&P and Aa2 with Moody’s. The difference in ratings is high but is mainly due to the GRI methanol

Table des matières de la publication Le Magazine du Trésorier - n°63 - 3ème trimestre 2008


Le Magazine du Trésorier - n°63 - 3ème trimestre 2008