Hexagon Annual Report 2019

CHANGE IN INTEREST RATES IN BASE POINTS EFFECT ON PROFIT/LOSS AFTER TAX (NOK 1 000) GAINS OR LOSSES ON INTEREST RATE DERIVATIVES IN COMPREHENSIVE INCOME AFTER TAX (NOK 1 000) 2019 +50 -5 062 0 -50 5 062 0 2018 +50 -2 009 0 -50 2 009 0 Based on the interest-bearing liabilities which existed as of 31 December 2019, an interest rate increase of 1% would reduce profit after tax by NOK 10 125 thousand (4 019 thousand). 2019 2018 Bank overdrafts 3.9 % 2.5 % Bank loan 3.6-3.9 % 2.0 % Bond loan 5.8 % Financial leases 1.25 to 4.88 % THE AVERAGE EFFECTIVE INTEREST RATE ON FINANCIAL LIABILITES WAS AS FOLLOWS Liquidity risk is the risk of the group not being in a position to fulfil its financial liabilities when they fall due. The group's strategy for managing liquidity risk is to set a level of available liquidity to enable it to discharge its financial liabilities when they fall due, both under normal and unexpected circumstances, without risking unacceptable losses or damaging the group's reputation. Undrawn credit facilities are dealt with in note 16. (III) LIQUIDITY RISK The majority of excess liquidity is invested in bank deposits. 51 137 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS