5 _429 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE 2023 consolidated financial statements The Group is also exposed to counterparty risk on derivative instruments used for hedging purposes that have a positive fair value. These hedging instruments and the level of concentration by bank are tracked weekly by Group Treasury and monitored monthly by the Financial Risks Committee. In order to mitigate counterparty risk on its derivative instruments, the Group exchanges collateral with its main banks. 33.1.7 Credit risk Risk factors Credit risks may arise when the Group grants credit to its customers. If a customer becomes insolvent or files for bankruptcy, it may default on the receivables held by the Group and this may have a negative impact on the Group's earnings and cash flows. Risk management response The Credit Department, which is part of the Group Financial Department, sets the maximum payment terms and customer credit limits to be applied by the operating companies. It manages and controls credit activity, risk and results, and is also responsible for managing and collecting trade receivables. The main policies and procedures are defined at Group level and are monitored and controlled at both regional and Group level. 33.2 Financial risk data 33.2.1 Liquidity risk At December 31, 2023, the debt repayment schedule (principal and interest) and the maturities of undrawn confirmed credit lines were as follows: (in € millions) 2024 2025 2026 2027 2028 2029 2030 and beyond Bonds 68 813 59 355 552 53 3,416 Commercial paper 301 - - - - - - Loans from financial institutions and other 284 40 15 9 4 - 13 Lease liabilities 272 222 172 116 77 49 217 Derivative instruments (18) (27) (30) (23) - - - DEBT REPAYMENT SCHEDULE 907 1,048 216 457 633 102 3,646 LONG-TERM UNDRAWN CONFIRMED CREDIT LINES - - - 46 2,454 - - This table analyzes principal and interest payments on debt by payment date, as projected using available market data at the reporting date (interest is calculated in each currency on the basis of market rates, and converted into euros at period-end rates). The amounts shown are not discounted. On May 23, 2022, the agreement for the €2,500 million syndicated credit lines was amended. The new agreement provided for a new five-year maturity (2027) with two one-year extension options at the lenders' discretion. The first extension option was exercised in 2023, extending the maturity of substantially all the lines to 2028 (€2,454 million). The Group considers that at December 31, 2023 its sources of financing were sufficient to meet the needs of the business, with: ● cash and cash equivalents for €2,515 million; ● cash management financial assets for €285 million; ● a €2,500 million NEU commercial paper program, of which €250 million had been utilized at December 31, 2023; ● a $700 million (€630 million) US commercial paper program, of which $50 million (€45 million) had been utilized at December 31, 2023; ● two €390 million receivables securitization programs that are utilized based on the availability of sufficient receivables of the required quality, with securitization debt at December 31, 2023 amounting to €15 million; ● €2,500 million in confirmed undrawn lines of credit.
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